Fund Description

The fund seeks to maximize income, while maintaining prospects for capital appreciation, by investing in a diversified portfolio of stocks and bonds.

Strategy Statement

"We follow a flexible, value-oriented investment philosophy seeking income and long-term capital appreciation potential by investing in dividend-paying stocks, convertible securities and bonds."

Edward D. Perks, CFA®

Fund Commentary

Quarterly Fund Commentary December 31, 2018

  • Renewed global growth worries, simmering trade tensions and slumping commodity prices trounced US stocks in the fourth quarter of 2018. In fixed income markets, US government-sponsored credits generally appreciated as the 10-year Treasury note's yield declined from 3.05% to 2.69%, though it also reached a seven-year settlement high of 3.24% in early November. Bond buyers also showed a preference for higher-quality, investment-grade corporate bonds; the group had a much shallower overall price decline than the high-yield, below-investment-grade credit tier, which was impacted foremost by a steep selloff in energy sector debt securities.  
  • For the quarter, the fund’s Advisor Class shares returned ‑6.57%, and its benchmarks, the S&P 500 Index and the Bloomberg Barclays US Aggregate Index, returned ‑13.52% and 1.64%, respectively.

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Monthly Commentary

Important Legal Information

The information provided is not a complete analysis of every material fact regarding any country, market, industry, security or fund. Because market and economic conditions are subject to change, comments, opinions and analyses are rendered as of the date of this material and may change without notice. A portfolio manager’s assessment of a particular security, investment or strategy is not intended as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy; it is intended only to provide insight into the fund’s portfolio selection process. Holdings are subject to change.

Your clients should carefully consider a fund’s investment goals, risks, charges and expenses before investing. They should read the summary prospectus and/or prospectus carefully before they invest or send money. To obtain a prospectus, which contains this and other information, please call Franklin Templeton Investments at (800) DIAL BEN/(800) 342-5236.

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Edward D. Perks, CFA

Edward D. Perks, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 2002
Matt Quinlan

Matt Quinlan

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2012
Todd Brighton, CFA

Todd Brighton, CFA®

  • Joined Franklin Templeton in 2000
  • Managed Fund Since 2017
Richard Hsu, CFA

Richard Hsu, CFA®

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2017
Brendan Circle, CFA

Brendan Circle, CFA®

  • Joined Franklin Templeton in 2013
  • Managed Fund Since 2019


Overall Morningstar Rating As of 02/28/2019

Rating Category: Allocation--30% to 50% Equity

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 02/28/2019

Years Ratings Funds
in category
5 Stars
2 Stars
4 Stars

Morningstar Style Box As of01/31/2019

Strategy, Benefits, Results


We seek to maximize income, while maintaining prospects for capital appreciation over the long term.

  • Using a value-oriented approach, we screen a broad universe of securities across asset classes, looking for those that we believe are undervalued or out-of-favor.
  • The fund has no set proportions on its allocations, which allows us to be flexible and actively select securities that present the best opportunities as market conditions change.
  • We tap the sector expertise of Franklin's equity and credit analysts when selecting investments for the fund, which helps maintain the fund's highly diversified approach.


  • A Record of Consistent Dividends. Our fund's Class A shares have paid uninterrupted dividends for over 65 calendar years.i.
  • Broad Diversification. Our fund has a diversified portfolio across several different asset classes, including dividend-paying stocks, bonds and convertible securities.
  • Experienced Management Team. Managers Ed Perks, Matt Quinlan, Todd Brighton and Richard Hsu have managed the fund since 2002, 2012, 2017 and 2017, respectively.

Selling The Fund

  1. Recognize the fund’s seasoned management team.

  2. Highlight the fund’s record of uninterrupted dividend payments.

  3. Emphasize the fund’s broad diversification across several asset classes.

  4. Point out the fund’s flexible, value-oriented approach to investing.

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