Fund Description

The fund’s investment goal is to maximize total return. The Fund emphasizes investing in securities with the potential to provide high current income and long-term capital appreciation, consistent with reasonable risk. The Fund normally invests at least 80% of its net assets in equity securities, with a focus on financially strong “blue chip” companies, as well as securities convertible into common stocks, and may also invest up to 20% of its net assets in debt securities.

Strategy Statement

"We believe the fund provides opportunity to participate in the growth potential of the equity market, while seeking high current income and reduced overall risk. "

Management

Matt Quinlan

Matt Quinlan

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2011
Alan Muschott, CFA

Alan Muschott, CFA®

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2005
Todd Brighton, CFA

Todd Brighton, CFA®

  • Joined Franklin Templeton in 2000
  • Managed Fund Since 2015

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Philosophy

Income-Oriented "Blue Chip" Companies
We seek to invest in financially-strong companies that have track records of providing a high dividend yield. We believe our bottom-up approach of seeking to invest in securities that can produce income and that are issued by companies with the potential for capital appreciation can provide strong, long-term results.

Fundamental Bottom-Up
We employ a bottom-up process to analyze companies and industries. Generally, we seek to exploit a fundamental view that can differ from the "market consensus" regarding growth potential or valuation.

Diversified Portfolio
We believe in investing in a diverse set of securities across industry sectors.

Long-Term Investors
We seek to invest in financially strong "blue chip" companies with favorable secular growth potential, and sustainable competitive advantages. Our analysis includes an assessment of any material Environmental, Social and Governance (ESG) factors on the long-term risk and return profile of a company. We apply a long-term perspective through the spectrum of market cycles.

Investment Process

Rating

Overall Morningstar Rating As of 11/30/2019

Rating Category: Large Value

Morningstar
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 11/30/2019

Years Ratings Funds
in category
3
4 Stars
1082
5
3 Stars
944
10
3 Stars
685

Morningstar Style Box As of10/31/2019

Strategy, Benefits, Results

Strategy

  • We search for high-quality companies with strong balance sheets and a distinct industry advantage.
  • We seek larger-cap companies that have track records of paying above-average dividend yields.
  • We further diversify the fund by investing in convertible securities and fixed-income investments.

Benefits

  • Experienced management team with over 57 years of combined industry experience.
  • Distinctive risk/reward profile.
  • Broad diversification spread across multiple asset classes.

Selling The Fund

  1. Highlight the team’s multi-asset class origin from both Franklin Equity Group and Franklin Templeton Fixed Income Group.

  2. Point out the potential benefits of investing in dividend-paying stocks.