Fixed Income

FQTIX Franklin Templeton SMACS: Series I

Overview

See the risks and other important information.

Fund Facts

Benchmark: Bloomberg High Yield Very Liquid Index
Additional Benchmark: 50% Bloomberg High Yield Very Liquid Index and 50% Bloomberg US Corporate Index
Fund Inception Date: 06/03/2019
Dividend Frequency, if any: Monthly
Portfolio Turnover: 17%

Sales Charges, Expenses & Fees

As of 01/01/2026

Gross Expense Ratio²: 0.06%
Net Expense Ratio^2,3: 0.00%
Maximum Initial Charge: N/A
CDSC: N/A
12b-1 Fee: N/A

Additional Fund Info

Share Class Inception Date: 06/03/2019
Investment Style: Multi-Sector
Lipper Classification: N/A
Morningstar Category⁴: Miscellaneous Fixed Income

Identifiers

Ticker: FQTIX
Fund Number: 3003
CUSIP Code: 35471D206

Manager and Commentary

About the Team

Franklin Income Investors

Franklin Income Investors has delivered consistent income for over 75 years. As pioneers in multi-asset income investing, our team takes a dynamic investment approach for investors seeking consistent income and growth.

Franklin Income Investors

Managed Fund Since 2019

Latest Insights

November 11, 2025

Diversifying for income

August 4, 2025

Mid-year update: Staying diversified and income-focused

May 5, 2025

Income diversification amid market uncertainty

February 5, 2025

Income diversification for uncertain times

Portfolio

Assets

As of12/31/2025 (Updated Monthly)

Total Net Assets: $719.70 Million

Positions

As of 12/31/2025 (Updated Monthly)

Number of Holdings

Fund: 175
Benchmark: 1,107

Geographic Allocation

As of 12/31/2025 % of Total (Updated Monthly)

Geographic Allocation
Geography	Fund
North America	95.19%
United States	94.68%
Canada	0.51%
Europe	1.80%
Denmark	0.58%
France	0.44%
United Kingdom	0.37%
Luxembourg	0.24%
Italy	0.14%
Ireland	0.03%
Australia/New Zealand	1.07%
Australia	1.07%
Asia	0.50%
Macao	0.50%
Middle East/Africa	0.25%
Israel	0.25%
Cash & Cash Equivalents	1.20%
Cash & Cash Equivalents	1.20%

Holdings
As of 11/30/2025 (Updated Monthly)

GOVT NATL MORTG ASSN 5.5% 10/20/2055 GNMA

CHS/Community Health Systems Inc 10.75% 06/15/2033 144A

CHS/Community Health Systems Inc 10.875% 01/15/2032 144A

Tenet Healthcare Corp 6.75% 05/15/2031

CHS/Community Health Systems Inc 6.125% 04/01/2030 144A

CHS/Community Health Systems Inc 6.875% 04/15/2029 144A

Beach Acquisition Bidco LLC 10.75% PIK TO 1/26 THEN 10% CASH 07/15/2033 144A PIK TOGG

Venture Global LNG Inc 9% 03/30/2174 PERP 144A

Tenet Healthcare Corp 6.125% 06/15/2030

CCO Holdings LLC / CCO Holdings Capital Corp 6.375% 09/01/2029 144A

Distributions & Tax

Distribution Frequency
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: MonthlyThis fund is an ex-Dividend fund

Proposed 2026 distribution dates for Franklin, Templeton and Mutual Series funds (excluding ETFs).

Proposed 2025 distribution dates for Franklin, Templeton and Mutual Series funds (excluding ETFs).

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distributions with future dates are estimates and those figures are not final

12/24/2025

11/21/2025

10/27/2025

09/24/2025

08/25/2025

07/25/2025

06/24/2025

05/22/2025

04/24/2025

03/25/2025

Pricing

Pricing History

As of 01/09/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 01/09/2026

Share Prices

As of 01/09/2026

NAV ¹(Net Asset Value): $8.15
POP ⁵(Public Offering Price): $8.15

52-Week Range

Highest NAV As of 01/09/2026: $8.15
Lowest NAV As of 04/07/2025: $7.68

Documents

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Templeton SMACS: Series I - Class A	Download Document
Checkbox	Annual Financial Statements and Other Information - Franklin Templeton Strategic Series	Download Document
Checkbox	Semi-Annual Report - Franklin Templeton SMACS: Series I - Class A	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Franklin Templeton Strategic Series	Download Document
Checkbox	Prospectus - Franklin Strategic Series SMACS	Download Document
Checkbox	Summary Prospectus - Franklin Templeton SMACS: Series I	Download Document
Checkbox	Statement of Additional Information - Franklin Strategic Series SMACSMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin Strategic Series SMACSMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin Strategic Series SMACSMailed hardcopies unavailable.	Download Document

Risks

All investments involve risks, including possible loss of principal. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Investments in equity-linked notes often have risks similar to their underlying securities, which could include management risk, market risk and, as applicable, foreign securities and currency risks. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the performance and result in greater fluctuation in value. These and other risks are discussed in the fund’s prospectus.

Important Information

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

The Bloomberg US High Yield Very Liquid Index is a component of the US Corporate High Yield Index designed to track a more liquid component of the U.S. dollar-denominated, high-yield, fixed-rate corporate bond market. The Bloomberg US Corporate Index is an index composed of corporate and non-corporate debt issues that are investment grade.
Source: Bloomberg Indices.

The Bloomberg High Yield Very Liquid Index is a component of the US Corporate High Yield Index designed to track a more liquid component of the U.S. dollar-denominated, high-yield, fixed-rate corporate bond market.
Source: Bloomberg Indices.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
Credit Quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by S&P Global Ratings, Moody's Investors Service and/or Fitch Ratings, Inc. and typically range from AAA (highest) to D (lowest), or an equivalent and/or similar rating. For this purpose, the manager assigns each security the middle rating from these three agencies. When only two agencies provide ratings, the lower of the two ratings will be assigned. When only one agency assigns a rating, that rating will be used. Foreign government bonds without a specific rating are assigned a country rating, if available. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the portfolio does not apply to the stability or safety of the portfolio. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.

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