Fixed Income

FKSRX Franklin Core Plus Bond Fund

Core building block. Provides broad, diversified exposure to high quality US fixed income markets.
Differentiated approach. Our portfolio construction approach is designed to reduce performance volatility and provide a consistent range of outcomes and strong risk-adjusted returns across market environments.
Experienced Portfolio Management Team. Tenured investment team with expertise across market cycles.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks to provide a high level of current income. Its secondary goal is capital appreciation over the long term. The fund is a core plus fund that invests across fixed income sectors, primarily in investment grade rated securities.

Benchmark: Bloomberg U.S. Aggregate Index
Dividend Frequency, if any: Monthly
Fund Inception Date: 05/24/1994
Distribution Rate at NAV⁴As of 10/28/2026 (Updated Daily): 4.01%
30-Day SEC Yield—With Waiver^5,6,7As of 09/30/2026 (Updated Monthly): 4.54%
30-Day SEC Yield—Without Waiver^6,7As of 09/30/2026 (Updated Monthly): 4.46%
Effective DurationAs of 09/30/2026 (Updated Monthly): 6.00 Years

Sales Charges, Expenses & Fees

As of 09/01/2026

Gross Expense Ratio: 1.06%
Net Expense Ratio⁸: 0.98%
Maximum Initial Charge: —
CDSC: N/A
12b-1 Fee: 0.50%

Identifiers

Ticker: FKSRX
Fund Number: 894
CUSIP Code: 354713554

Average Annual Total Returns As of 09/30/2026

View performance section for additional info As of 09/30/2026

Class R

With Sales Charge (POP)

Without Sales Charge (NAV)

-2.04%1 Year
4.15%3 Years
0.53%5 Years
1.80%10 Years
5.13%Since Inception
05/24/1994

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

See the risks and other important information.

Top Sectors

View portfolio section for additional info

As of 09/30/2026 - Notional Exposure % of Total (Updated Monthly)

Top Sectors
Investment Grade Corporates35.89%
Interest Rate Derivatives33.70%
Agency Mortgage-Backed Securities27.63%
Residential Mortgage-Backed Securities8.20%
Collateralized Loan Obligation7.35%

Additional Fund Info

Share Class Inception Date: 01/02/2002
Investment Style: Multi-Sector
Lipper Classification: Core Plus Bond Funds
Morningstar Category⁹: Intermediate Core-Plus Bond

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-driven approach means maintaining portfolio and risk exposures that align with client expectations.

Commentary Highlights

September 30, 2026

Markets: Geopolitical developments remained a focus during the quarter, with receding expectations of a settlement nearer to quarter-end resulting in oil prices surging to over US$100/barrel, compared to around US$72/barrel in early July. This energy price move, combined with an increasingly hawkish central bank outlook, drove market moves, especially nearer the end of the quarter. The US dollar (USD) was modestly stronger over the quarter, with mixed performance against other currencies. Notably, the Japanese yen appreciated against the USD over the period as it benefited from intervention during the quarter. Following on increasingly hawkish rhetoric, the Federal Reserve (Fed) raised the fed funds rate by 25 basis points (bps) at its September meeting, retaining a hawkish outlook. Fixed income volatility measures rose during the quarter. Credit spreads rose over the quarter, with the increases more pronounced in the high-yield (HY) sectors. Total returns in corporate bonds were negative over the quarter. Securitized sectors posted a negative excess return compared to duration-matched Treasuries. By the end of the period, the benchmark 10-year US Treasury yield rose 82 bps to 5.28%, its highest level since mid-2007.
Contributors : Out-of-index positions in senior-secured floating-rate bank loans, collateralized loan obligations (CLOs) and residential mortgage-backed securities (RMBS). Security selection within sovereign emerging market (EM) debt, commercial mortgage-backed securities (CMBS) and HY corporate bonds. Overweight allocations to the 10- and 30-year segments of the yield curve, along with an underweight allocation to the two-year segment.
Detractors: Out-of-index exposure to HY corporate bonds and overweight allocations to agency mortgage-backed securities (MBS) and investment-grade (IG) corporate credit. Selection within senior-secured floating-rate bank loans, asset-backed securities (ABS) and MBS. Overweight allocation to the five-year segment of the curve and an underweight allocation to the 20-year segment.
Outlook : The September Federal Open Market Committee (FOMC) meeting reinforced our view that the Fed is committed to a higher-for-longer path. Following the September hike, we anticipate a second increase by year-end, although we do not expect a return to 2022-style sequential hikes.

For complete information, please see the full commentary:

Franklin Templeton Fixed Income

Managed Fund Since 2025

Managed Fund Since 2026

Managed Fund Since 2024

Managed Fund Since 2022

Managed Fund Since 2018

Managed Fund Since 2026

Latest Insights

October 27, 2026

Weekly Municipal Monitor

October 19, 2026

Flash Insights: Resilient Growth, Sticky Inflation

October 14, 2026

Central Bank Watch: Growth Holds—Inflation Bites

October 14, 2026

An update on our ESG scores: October 2026

Performance

Average Annual Total Returns

As of 09/30/2026

Month End

Quarter End

As of

Class R - With Sales Charge (POP) (%)

Month End

As of 09/30/2026

1 Year: -2.04

3 Years: 4.15

5 Years: 0.53

10 Years: 1.80

Since Inception(05/24/1994): 5.13

Class R - Without Sales Charge (NAV) (%)

Month End

As of 09/30/2026

1 Year: -2.04

3 Years: 4.15

5 Years: 0.53

10 Years: 1.80

Since Inception(05/24/1994): 5.13

Bloomberg U.S. Aggregate Index (%)

Month End

As of 09/30/2026

1 Year: -1.84

3 Years: 4.06

5 Years: -0.64

10 Years: 1.14

Since Inception(05/24/1994): 4.38

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 09/30/2026

3 Years: 3 Years: 2 out of 5 stars
495 Funds in category

5 Years: 5 Years: 4 out of 5 stars
453 Funds in category

10 Years: 10 Years: 3 out of 5 stars
351 Funds in category

Rating Category: Intermediate Core-Plus Bond

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.

The number of funds in the category for the Overall Morningstar Rating are listed in the funds in category for the 3-year rating.

Morningstar Style Box

As of 09/30/2026

Current Historical
			Large
			Medium
			Small
Value	Blend	Growth
Style

Size

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2026 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.

Portfolio

Assets

As of09/30/2026 (Updated Monthly)

Total Net Assets: $2.83 Billion

Positions

As of 09/30/2026 (Updated Monthly)

Number of Holdings

Fund: 1,094
Benchmark: 14,227

Portfolio Statistics

As of 09/30/2026 (Updated Monthly)

Effective Duration

Fund: 6.00 Years
Benchmark: 5.73 Years

Average Weighted Maturity

Fund: 12.19 Years
Benchmark: 11.73 Years

Asset Allocation

As of 09/30/2026 - Market Value % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Fixed Income	111.97%
Equity	0.53%
Cash & Cash Equivalents	-12.50%

Holdings
As of 09/30/2026 (Updated Monthly)

As of

Fannie Mae Or Freddie Mac 5.5% 10/01/2056 FHLM

Fannie Mae Or Freddie Mac 2.5% 10/01/2056 FHLM

Franklin Institutional US Government Money Market Fund

United States Treasury Note/Bond 4.625% 11/15/2045

GOVT NATL MORTG ASSN 6% 10/01/2056 GNMA

Fannie Mae Pool 2% 04/01/2052 FNMA

Franklin Ultra Short Bond ETF

Fannie Mae Or Freddie Mac 3% 10/01/2056 FNL

United States Treasury Note/Bond 2.875% 05/15/2049

GOVT NATL MORTG ASSN 5.5% 10/01/2056 GNMA

Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.

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
Capital Gain Distributions: December

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

Rates and Yields Read important information about results and other investment disclosures

Distribution Rate ⁴

As of 10/29/2026 (Updated Daily)

At Net Asset Value (NAV) 4.00%

30-Day SEC Yield ^5,6,7

As of 09/30/2026 (Updated Monthly)

w/ Waiver 4.54%

w/o Waiver 4.46%

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

12/24/2026

10/26/2026

09/24/2026

08/25/2026

07/27/2026

06/24/2026

05/22/2026

04/24/2026

03/25/2026

02/23/2026

01/26/2026

Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.

The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.

Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.

Pricing

Pricing History

As of 10/29/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 10/29/2026

Share Prices

As of 10/29/2026

NAV ¹(Net Asset Value): $7.98
NAV Change ¹: $0.02
NAV Change (%) ¹: 0.25%

52-Week Range

Highest NAV As of 02/27/2026: $8.44
Lowest NAV As of 10/05/2026: $7.85

Documents

Fund Literature

Factsheet - Franklin Core Plus Bond Fund

Product Commentary - Franklin Core Plus Bond Fund

Regulatory Documents

Annual Report - Franklin Core Plus Bond Fund - Class R

Annual Financial Statements and Other Information - Franklin Strategic Series

Semi-Annual Report - Franklin Core Plus Bond Fund - Class R

Semiannual Financial Statements And Other Information - Franklin Strategic Series

Prospectus - Franklin Core Plus Bond Fund (fka Franklin Strategic Income Fund)

Summary Prospectus - Franklin Core Plus Bond Fund (fka Franklin Strategic Income Fund) as amended 11/12/24

Statement of Additional Information - Franklin Core Plus Bond Fund (fka Franklin Strategic Income Fund)

Mailed hardcopies unavailable.

Fiscal Q1 Holdings - Franklin Strategic Series

Mailed hardcopies unavailable.

Fiscal Q3 Holdings - Franklin Strategic Series

Mailed hardcopies unavailable.

View Proxy Voting Records and Proxy Voting Policies

Risks

All investments involve risks, including possible loss of principal. 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. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Floating-rate loans and debt securities are typically rated below investment grade and are subject to greater risk of default, which could result in loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. 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.

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.

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

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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.

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 U.S. Aggregate Index is comprised of investment-grade, U.S. dollar-denominated government, corporate, and mortgage- and asset-backed issues having at least one year to maturity.
Source: Bloomberg Indices.

All Putnam-named funds and Franklin Retirement Advantage, Franklin Dynamic Asset Allocation, and Franklin Multi-Asset Income-named funds and Royce funds are not exchangeable for other funds distributed by Franklin Distributors, LLC.

Click here for funds sales charge and breakpoint information.

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.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. ©2026 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.
Distribution Rate is calculated by annualizing the most recent distribution amount paid, divided by the NAV as of the date indicated. The Distribution Rate calculation includes income and excludes special distributions. The Distribution Rate is subject to change and is not guaranteed nor a quotation of fund performance.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Net Expense Ratio represents the expense ratio applicable to investors.
©2026 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.
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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FKSRX Franklin Core Plus Bond Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class R

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Chart

Ratings 3

Portfolio

Asset Allocation Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.

Distributions & Tax

Rates and Yields Read important information about results and other investment disclosures

Pricing

Chart

Daily Fund Prices

Documents

Fund Literature

Regulatory Documents

Risks

Important Information

Footnotes

Ratings ³

Asset Allocation