Fixed Income

FHRRX Franklin High Income Fund

Diversified portfolio. We invest in hundreds of securities representing various industries, thereby helping to reduce the potential negative impact any one security or sector may have on the fund's overall performance.
Extensive track record. With performance dating back to 1969, our fund has navigated a variety of economic environments.
Global fixed income expertise. Investors have full access to the research resources of the Franklin Templeton Fixed Income.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks a high level of current income, with a secondary focus on capital appreciation, by investing predominantly in higher-yielding, lower-rated corporate bonds.

Benchmark: ICE BofA US High Yield Constrained Index
Dividend Frequency, if any: Monthly
Fund Inception Date: 12/31/1969
Distribution Rate at NAV⁴As of 02/06/2026 (Updated Daily): 6.37%
30-Day SEC Yield—With Waiver^5,6,7As of 12/31/2025 (Updated Monthly): 6.09%
30-Day SEC Yield—Without Waiver^6,7As of 12/31/2025 (Updated Monthly): 6.07%
Effective DurationAs of 01/31/2026 (Updated Monthly): 2.75 Years

Sales Charges, Expenses & Fees

As of 02/01/2026

Gross Expense Ratio⁸: 0.53%
Net Expense Ratio^8,9: 0.51%
Maximum Initial Charge: —
CDSC: N/A
12b-1 Fee: N/A

Identifiers

Ticker: FHRRX
Fund Number: 355
CUSIP Code: 353538606

Average Annual Total Returns As of 12/31/2025

View performance section for additional info As of 12/31/2025

Class R6

With Sales Charge (POP)

Without Sales Charge (NAV)

9.23%1 Year
10.48%3 Years
5.23%5 Years
6.95%10 Years
7.71%Since Inception
12/31/1969

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

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

Top Sectors
Finance15.24%
Energy11.97%
Health Care7.92%
Building7.76%
Media Non Cable5.95%

Additional Fund Info

Share Class Inception Date: 05/01/2013
Investment Style: High Yield
Lipper Classification: High Yield Funds
Morningstar Category¹⁰: High Yield 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-drives approach means maintaining portfolio and risk exposures that align with client expectations.

Commentary Highlights

12/31/2025

Markets : The fourth quarter (Q4) of 2025 saw monthly shifts in market sentiment as uncertainties increased in the first part of the quarter. The US federal government went into a shutdown on October 1 as the US Senate was unable to pass a spending bill. This, among other things, delayed or canceled the publication of key economic data leading to a lack of clarity on the economic condition of the United States. The shutdown was lifted in mid-November, and subsequent data showed that economic growth in the United States remained resilient. The US Federal Reserve delivered three consecutive 25-basis-point (bp) cuts in Q4, helping market sentiment to improve in December. Fixed income volatility measures fell toward the end of the quarter, reaching their lowest level since 2021. The US Treasury (UST) yield curve steepened during the quarter as the benchmark 10-year UST yield rose two bps to end the year at 4.17%.
Contributors : Security selection in healthcare and packaging.
Detractors :. Security selection in chemicals and media cable.
Outlook : Overall, we remain constructive on high-yield (HY) corporate credit and believe it offers a reasonable loss-adjusted carry but acknowledge that valuations do not offer much upside potential from here.

For complete information, please see the full commentary:

Franklin Templeton Fixed Income

Managed Fund Since 2015

Managed Fund Since 2020

Latest Insights

January 26, 2026

European fixed income outlook—cautious optimism

January 20, 2026

The municipal bond market outlook: Continued stability—a good sign for investors

January 15, 2026

Flash Insights: Addressing US housing affordability—a targeted financing approach

January 8, 2026

Flash Insights: Notes on Venezuela

Performance

Average Annual Total Returns

As of 12/31/2025

Month End

Quarter End

As of

Class R6 - With Sales Charge (POP) (%)

Month End

As of 12/31/2025

Class R6 - Without Sales Charge (NAV) (%)

Month End

As of 12/31/2025

ICE BofA US High Yield Constrained Index (%)

Month End

As of 12/31/2025

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.

Overall Morningstar Rating: Overall Morningstar Rating: 5 out of 5 stars
As of 01/31/2026

3 Years: 3 Years: 4 out of 5 stars
577 Funds in category

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

10 Years: 10 Years: 5 out of 5 stars
439 Funds in category

Rating Category: High Yield 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.

Morningstar Style Box

As of 01/31/2026

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.

©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.

Portfolio

Assets

As of12/31/2025 (Updated Monthly)

Total Net Assets: $2.90 Billion

Positions

As of 12/31/2025 (Updated Monthly)

Number of Holdings

Fund: 352
Benchmark: 1,923

Portfolio Statistics

As of 12/31/2025 (Updated Monthly)

Average Weighted Maturity

Fund: 3.25 Years
Benchmark: 3.87 Years

Effective Duration

Fund: 2.69 Years
Benchmark: 2.87 Years

Asset Allocation

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

Asset Allocation
Holdings	Fund
Fixed Income	97.06%
Equity	0.43%
Cash & Cash Equivalents	2.51%

Holdings
As of 12/31/2025 (Updated Monthly)

Franklin Institutional U.S. Government Money Market Fund OEMF-SWEEP MONEY MARKET PORTFOLIO

Martin Midstream Partners LP / Martin Midstream Finance Corp 11.5% 02/15/2028 144A

Wynn Resorts Finance LLC / Wynn Resorts Capital Corp 7.125% 02/15/2031 144A

EMRLD Borrower LP / Emerald Co-Issuer Inc 6.625% 12/15/2030 144A

Weekley Homes LLC / Weekley Finance Corp 6.75% 01/15/2034 144A

California Buyer Ltd / Atlantica Sustainable Infrastructure PLC 6.375% 02/15/2032 144A

Mauser Packaging Solutions Holding Co 9.25% 04/15/2030 144A

Kedrion SpA 6.5% 09/01/2029 144A

RR Donnelley & Sons Co 9.5% 08/01/2029 144A

Smyrna Ready Mix Concrete LLC 8.875% 11/15/2031 144A

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

Federal ID Number 94-1693697

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Record Date	Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
Jan 27	0.0091	—	—	—	—	—	—	—	—
Feb 24	0.0094	—	—	—	—	—	—	—	—
Mar 25	0.0092	—	—	—	—	—	—	—	—
Apr 24	0.0098	—	—	—	—	—	—	—	—
May 22	0.0096	—	—	—	—	—	—	—	—
Jun 24	0.0095	—	—	—	—	—	—	—	—
Jul 25	0.0088	—	—	—	—	—	—	—	—
Aug 25	0.0096	—	—	—	—	—	—	—	—
Sep 24	0.0094	—	—	—	—	—	—	—	—
Oct 27	0.0097	—	—	—	—	—	—	—	—
Nov 21	0.0111	—	—	—	—	—	—	—	—
Dec 24	0.0094	—	—	—	—	—	—	—	—
	0.1146	—	—	—	—	—	—	—	—

Jan 27

Feb 24

Mar 25

Apr 24

May 22

Jun 24

Jul 25

Aug 25

Sep 24

Oct 27

Nov 21

Dec 24

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: —
Specified Private Activity Bond Interest: —
Dividends Received Deduction: —
Section 163(j): 98.49%
Indiana Resident Taxable Income: —
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: —

Franklin Templeton and its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 02/06/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 02/06/2026

Share Prices

As of 02/06/2026

NAV ¹(Net Asset Value): $1.77
NAV Change ¹: $0.00
NAV Change (%) ¹: 0.00%
POP ¹¹(Public Offering Price): $1.77

52-Week Range

Highest NAV As of 01/26/2026: $1.78
Lowest NAV As of 04/07/2025: $1.67

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download	Add to Cart
Checkbox	Factsheet - Franklin High Income Fund	Download Document
Checkbox	Product Commentary - Franklin High Income Fund	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin High Income Fund - Class R6	Download Document
Checkbox	Annual Financial Statements and Other Information - Franklin High Income Fund	Download Document
Checkbox	Semi-Annual Report - Franklin High Income Fund - Class R6	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Franklin High Income Fund	Download Document
Checkbox	Prospectus - Franklin High Income Fund	Download Document
Checkbox	Summary Prospectus - Franklin High Income Fund	Download Document
Checkbox	Statement of Additional Information - Franklin High Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin High Income FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin High Income FundMailed hardcopies unavailable.	Download Document

View Proxy Voting Records and Proxy Voting Policies

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. 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. 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. 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. 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

Click here for funds sales charge and breakpoint 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 ICE BofA US High Yield Constrained Index measures the performance of USD-denominated, noninvestment grade, fixed rate and taxable corporate bonds.
Source: The index data referenced herein is the property of Intercontinental Exchange ("ICE") and/or its licensors and has been licensed for use by Franklin Templeton. ICE and its licensors accept no liability in connection with this use.

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. ©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.
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 return of capital, and excludes special distributions. The Distribution Rate is not guaranteed, subject to change, and is not 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.
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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Individual Investor

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Institutional Investor

FHRRX Franklin High Income Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class R6

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings 3

Portfolio

Asset Allocation

Distributions & Tax

Federal ID Number 94-1693697

Pricing

Chart

Daily Fund Prices

Documents

Risks

Important Information

Footnotes

Ratings ³