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For over seven decades, Franklin Income Strategy has been providing investors with income and capital appreciation. Franklin Income Fund is well diversified across multiple asset classes, which has led to consistent income over the life of the fund.

Income

Over 70 years of maximizing income generation stream & potential total return

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Flexible

Allocation in pursuit in best opportunities

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Broad diversification

Across asset classes and sectors

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Seasoned­

Management team combined with the depth and breadth of Franklin Templeton’s global research teams

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Why Now

  • Ability to tactically shift between equity and fixed income in pursuit of sustainable income opportunities across changing market conditions.

  • Retain cautions view on equities in favor of fixed income. Government bonds attractive as a volatility hedge. High-quality corporate bonds provide meaningful additional yield, and some potential diversification benefits versus government bonds. High yield corporate bonds offer attractive income opportunities, but preference for shorter duration assets within this segment.

Reasons to invest

Consistent income generation and potential total return

Focus on income and growth with a core value approach

The portfolio management team evaluates a broad universe of securities across various asset classes to seek undervalued securities they believe can maximize income while maintaining prospects for capital appreciation.

A flexible approach that adjust to changing market conditions

The fund has the flexibility to pursue what it believes are the best opportunities at any point in time and the patience to see these opportunities bear fruit.  The fund’s allocation can shift between equity and fixed income without restriction at any given time based on where the fund managers are finding the most attractive investment opportunities.

 

Franklin Income Fund Tactical Allocation Shifts over Time

As of June 30, 2025

Broad Diversification across Multiple Asset Classes

Franklin Income Fund provides a broad set of investments within a single fund. The management team seeks investment opportunities across a range of asset classes and security types, including stocks, bonds and Hybrid securities.

With investments in more than 163 issuers, the fund is well diversified, which can help reduce its overall volatility. In instances where the fund managers identify opportunity, the fund may hold multiple parts of an issuer’s capital structure through a combination of securities

Broad Opportunity Set:

Fixed Income

  • Corporate Bonds (Investment Grade and High Yield)
  • Floating Rate Loans
  • Securitized Debt (MBS/ABS)

Hybrid Securities

  • Equity-Linked Notes (ELNs)
  • Convertible Preferred Stocks
  • Convertible Bonds

Equities

  • Common Stocks
  • Preferred Stocks

Strong historical performance spanning different interest rate environments

Since Franklin Income Strategy´s inception in 1948, it has traversed rising and declining interest rate environments, seeking what it considers the best income-generating opportunities at any given time. This has resulted in a record of strong returns for long-term investors.

A record of impressive returns following down years

Even the most successful actively managed funds can have short term underperformance. Over the past 23 calendar years, Franklin Income Fund has had positive returns in 18 years (82% of the time) and 5 years of negative returns. Additionally, if you look at the periods following down years, you’ll see how well the fund rebounded.

–Class A (Without Sales Charge)

Key Materials

Fund Flyer

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Investment Team

Investment team, led by Edward D. Perks, lead portfolio manager since 2004, strives to meet investor needs for income and long-term capital appreciation. This seasoned team leverages the depth and breadth  of Franklin Templeton’s global research teams to help identify the most compelling investments for the fund.

Edward D. Perks

Lead Portfolio Manager
Managed Fund since 2002

Brendan Circle

Portfolio Manager
Managed Fund since 2019

Todd Brighton

Portfolio Manager
Managed Fund since 2017

Insights

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DECEMBER 8, 2025

Allocation Views: Focused on strong fundamentals

In this month’s Allocation Views, Franklin Templeton Investment Solutions suggests a cautious optimism on equities despite recent market volatility.

MARCH 27, 2025

Enhancing portfolio resilience: Alternative assets, risk premia, and tail-risk hedging

One question that keeps arising from investors around the world: How can investors build more resilient portfolios? Franklin Templeton Investment Solutions offers strategies to consider.

MARCH 21, 2025

Back to benchmarks: An intuitive framework for incorporating digital assets into diversified portfolios

There are unique opportunities and challenges in investing in digital assets. For those interested in this exposure, Franklin Templeton Investment Solutions explores the significance of including digital assets, such as bitcoin, first into benchmarks.

Footnotes:

1. This information is for illustrative purposes only and not necessarily representative of Franklin Income Fund’s past of future portfolio composition. This information is not intended as an investment recommendation, nor does it constitute investment advice.

Important Legal Information

The information contained in this piece is not a complete analysis of every material fact regarding the market and any industry, sector, security or portfolio. Statements of fact cited by the manager have been obtained from sources considered reliable, but no representation is made as to their completeness or accuracy. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date of the material and are subject to change without notice. The manager’s opinions are intended solely to provide insight into how the manager analyzes securities, may differ from that of other affiliated managers, and are not a recommendation or individual investment advice for any particular security, strategy, or investment product. Any securities discussed may not represent an account’s entire portfolio and in the aggregate may represent a small percentage of an account’s portfolio holdings. There is no assurance that any such securities will remain in an account’s portfolio, or that securities sold have not been repurchased. It should not be assumed that any securities transactions discussed were or will prove to be profitable. The information provided should not be considered a recommendation to purchase, sell or hold any particular security. All indexes are unmanaged and cannot accommodate direct investment.

The Franklin Income Fund invests mainly in a diversified portfolio of U.S. equity, equity related and debt securities. Such securities have historically been subject to price movements that may occur suddenly due to equity market-and bond market-specific factors. As a result, the performance of the Fund can fluctuate considerably over time. Credit risk: the risk of loss arising from default that may occur if an issuer fails to make principal or interest payments when due. This risk is higher if the Fund holds low-rated, sub-investment-grade securities. Foreign Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations.

Your clients should review their investment objectives, risk tolerance and liquidity needs before choosing a manager. There is no guarantee that investment strategies will work under all market conditions and investors should evaluate their ability to invest for the long-term, especially during periods of market downturns.

Statements of fact are from sources considered reliable, but no representation or warranty is made as to their completeness or accuracy. Additional important data provider notices and terms are available at www.franklintempletondatasources.com.

Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.