Multi-Asset

FBFQX Franklin Managed Income Fund

Fixed monthly income distributions, which are pre-determined for each calendar year.
Broadly diversified and actively managed to adapt to changing markets.
Experienced portfolio management team. Portfolio managers Ed Perks, Brendan Circle, and Todd Brighton bring over 65 years of combined experience.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks to maximize income to support monthly distributions while maintaining the prospects for capital appreciation. The fund invests in a diversified portfolio of stocks and debt securities and employs a managed distribution policy that is intended to provide level monthly payments.

Benchmark^4,5: Linked 60% Bloomberg U.S. Aggregate Index & 40% MSCI USA High Dividend Yield Index
Additional Benchmark: Bloomberg US Aggregate Index
Dividend Frequency, if any: Monthly
Distribution Rate at NAV⁶As of 03/10/2026 (Updated Daily): 4.15%
30-Day SEC Yield—With Waiver^7,8,9As of 02/28/2026 (Updated Monthly): 2.48%
30-Day SEC Yield—Without Waiver^8,9As of 02/28/2026 (Updated Monthly): 2.45%
Fund Inception Date: 07/03/2006

Sales Charges, Expenses & Fees

As of 03/01/2026

Gross Expense Ratio¹⁰: 1.16%
Net Expense Ratio^10,11: 1.16%
Maximum Initial Charge: —
CDSC: N/A
12b-1 Fee: 0.50%

Identifiers

Fund Number: 817
Ticker: FBFQX
CUSIP Code: 353612666

Average Annual Total Returns As of 02/28/2026

View performance section for additional info As of 02/28/2026

Class R

With Sales Charge (POP)

Without Sales Charge (NAV)

13.02%1 Year
9.29%3 Years
6.63%5 Years
7.59%10 Years
6.33%Since Inception
07/03/2006

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 Asset Allocation

View portfolio section for additional info

As of 02/28/2026 % of Total (Updated Monthly)

Top Asset Allocation
Fixed Income46.30%
Equity38.91%
Convertibles/Equity-Linked Notes13.09%
Cash & Cash Equivalents1.71%

Additional Fund Info

Share Class Inception Date: 07/03/2006
Investment Style: Multi-Asset Income
Morningstar Category¹²: Moderately Conservative Allocation
Lipper Classification: Mixed-Asset Target Allocation Moderate Funds

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.

Commentary Highlights

December 31, 2025

Markets: US equities collectively delivered solid gains during the fourth quarter of 2025, maintaining their upward trajectory against a backdrop of generally robust corporate earnings, despite some mixed economic signals and investor concerns about stretched technology valuations. Continued monetary easing by the US Federal Reserve (Fed), along with a constructive shift in US-China relations, supported investor sentiment.
Contributors: Allocations to both the fixed income and equity sides of the portfolio benefited the fund’s absolute returns. On a relative basis, security selection, as well as underweight positioning within fixed income and an overweight allocation to equities, assisted performance.
Detractors: An overweight allocation to utilities stocks weakened relative equity returns, while selection among US Treasuries (USTs) detracted from relative fixed income results.
Outlook: We believe fixed income yields remain attractive, and we are constructive on equity markets despite volatility within certain sectors. Broad diversification and a high degree of flexibility underpin our approach to navigating the year ahead. Our diversified portfolio is designed to pursue income stability while selectively participating in secular growth themes using tools like equity-linked notes.

For complete information, please see the full commentary:

Franklin Income Investors

Managed Fund Since 2006

Managed Fund Since 2019

Managed Fund Since 2017

Latest Insights

January 12, 2026

Investment outlook for 2026: Policy is paramount and income a priority

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

Performance

Calendar Year Returns

As of 02/28/2026

Month End

Quarter End

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

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

Linked 60% Bloomberg U.S. Aggregate Index & 40% MSCI USA High Dividend Yield Index (%)

Bloomberg US Aggregate Index (%)

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: 4 out of 5 stars
As of 02/28/2026

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

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

10 Years: 10 Years: 4 out of 5 stars
160 Funds in category

Rating Category: Moderately Conservative Allocation

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 02/28/2026

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 of02/28/2026 (Updated Monthly)

Total Net Assets: $3.53 Billion

Positions

As of 02/28/2026 (Updated Monthly)

Number of Holdings

Fund: 173

Number of Convertible Issuers

Fund: 24

Number of FI Issuers

Fund: 59

Number of Issuers

Fund: 116

Number of Equity Issuers

Fund: 52

Portfolio Statistics

As of 02/28/2026 (Updated Monthly)

Dividend Yield ¹³

Fund: 3.95%

Price to Book

Fund: 3.54x

Price to Cash Flow

Fund: 13.72x

Average Weighted Maturity

Fund: 6.53 Years

Price to Earnings (12-Month Trailing)

Fund: 23.59x

Effective Duration

Fund: 5.26 Years

Asset Allocation

As of 02/28/2026 % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Fixed Income	46.30%
Equity	38.91%
Convertibles/Equity-Linked Notes	13.09%
Cash & Cash Equivalents	1.71%

Holdings
As of 01/31/2026 (Updated Monthly)

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

GOVT NATL MORTG ASSN 5.5% 02/20/2055 GNMA

Chevron Corp COM USD.75

Procter & Gamble Co/The COM NPV

United States Treasury Strip Principal 08/15/2054

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

United States Treasury Note/Bond 4.75% 05/15/2055

Texas Instruments Inc COM USD1

Exxon Mobil Corp COM NPV

Home Depot Inc/The COM USD0.05

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 20-4553555

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	0.0452	0.013917	—	—	—	—	—	—	—
Feb 24	0.0452	0.013917	—	—	—	—	—	—	—
Mar 25	0.0452	0.013917	—	—	—	—	—	—	—
Apr 24	0.0452	0.013917	—	—	—	—	—	—	—
May 22	0.0452	0.013917	—	—	—	—	—	—	—
Jun 24	0.0452	0.013917	—	—	—	—	—	—	—
Jul 25	0.0452	0.013917	—	—	—	—	—	—	—
Aug 25	0.0452	0.013917	—	—	—	—	—	—	—
Sep 24	0.0452	0.013917	—	—	—	—	—	—	—
Oct 27	0.0057	0.001755	0.0395	—	—	—	—	—	—
Nov 21	0.0452	0.013917	—	—	—	—	—	—	—
Dec 24	0.034439	0.010604	0.026361	—	—	—	—	—	—
	0.492139	0.151529	0.065861	—	—	—	—	—	—

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.: 1.92%
Specified Private Activity Bond Interest: —
Dividends Received Deduction: 27.52%
Section 163(j): 57.73%
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 03/10/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 03/10/2026

Share Prices

As of 03/10/2026

NAV ¹(Net Asset Value): $13.52
NAV Change ¹: $-0.03
NAV Change (%) ¹: -0.22%
POP ¹⁴(Public Offering Price): $13.52

52-Week Range

Highest NAV As of 02/27/2026: $13.76
Lowest NAV As of 04/08/2025: $11.80

Documents

Fund Literature

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

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Managed Income Fund - Class R	Download Document
Checkbox	Annual Financial Statements And Other Information - Franklin Investors securities Trust	Download Document
Checkbox	Semi-Annual Report - Franklin Managed Income Fund Class R	Download Document
Checkbox	Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust	Download Document
Checkbox	Prospectus - Franklin Investors Securities Trust #1	Download Document
Checkbox	Summary Prospectus - Franklin Managed Income Fund	Download Document
Checkbox	Statement of Additional Information - Franklin Investors Securities Trust #1Mailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin Investors Securities Trust FundsMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin Investors Securities Trust FundsMailed hardcopies unavailable.	Download Document

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. Equity securities are subject to price fluctuation and possible loss of principal. 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.

Managed Distribution Policy Risks - The fund is not guaranteed to achieve its investment goal nor is there any guarantee that the fund will provide sufficient income at or through the investor's retirement. In addition, some of its distributions may be treated in part as a return of capital, which will decrease shareholders' cost basis in the fund and affect the amount of any capital gain or loss that they realize when selling or exchanging fund shares. The annual payout rate may be adjusted higher or lower from year to year and could vary substantially over time. It is possible for the fund to suffer substantial investment losses and simultaneously experience additional asset reductions as a result of its distributions to shareholders under the managed distribution policy. Investors who hold the fund within a tax-advantaged retirement account should consult their tax professional to discuss tax consequences of receiving cash distributions. In addition, use of the fund or election of the option to receive distribution payments in cash may be restricted in certain retirement plans by the terms of the governing plan documents and/or the discretion of the plan administrator. Investors are strongly advised to consult with their financial professional for assistance before selecting the appropriate fund, based on their goals and personal situations, including time horizon, retirement income needs, risk tolerance, and tax bracket.

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 MSCI USA High Dividend Yield Index is designed to reflect the performance of mid- and large-cap equities (excluding REITs) with higher dividend income, which is sustainable and persistent, than average dividend yields of securities in the MSCI USA Index, its parent index.
Source: MSCI makes no warranties and shall have no liability with respect to any MSCI data reproduced herein. No further redistribution or use is permitted. This report is not prepared or endorsed by MSCI.

The Bloomberg US 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.

Effective 3/1/19, Franklin Balanced Fund repositioned to become an income strategy. The fund changed its name to Franklin Managed Income Fund, as well as its dividend policy, investment management fees and primary benchmark.

Managed Distribution Policy Risks - The Franklin Managed Income Fund is not guaranteed to achieve its investment goal of seeking to maximize income to support monthly distributions, while maintaining the prospects for capital appreciation. In addition, some of its distributions may be treated in part as a return of capital which will decrease shareholders' cost basis in the fund and affect the amount of any capital gain or loss that they realize when selling or exchanging fund shares. The annual payout rate may be adjusted higher or lower from year to year, and could vary substantially over time. It is possible for the fund to suffer substantial investment losses and simultaneously experience additional asset reductions as a result of its distributions to shareholders under the managed distribution policy. Investors who hold the fund within a tax-advantaged retirement account should consult their tax advisors to discuss tax consequences of receiving cash distributions. In addition, use of the fund or election of the option to receive distribution payments in cash may be restricted in certain retirement plans by the terms of the governing plan documents and/or the discretion of the plan administrator. Investors are strongly advised to consult with their financial professional for assistance before selecting the fund, based on their goals and personal situations, including time horizon, income needs, risk tolerance, and tax bracket. These and other risks are described more fully in the fund's prospectus.

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.
The Linked 60% Bloomberg U.S. Aggregate Index & 40% MSCI USA High Dividend Yield Index reflects the performance of the Blended 50% MSCI USA High Dividend Yield Index + 25% ICE BofA US Corporate & High Yield Index + 25% Bloomberg US Aggregate Index from fund inception through 2/28/2025 and 40% MSCI USA High Dividend Index & 60% Bloomberg US Aggregate thereafter.
Effective March 1, 2025, the fund changed its benchmark to the Linked 60% Bloomberg U.S. Aggregate Index & 40% MSCI USA High Dividend Yield Index.
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, may include capital gains 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.
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.
Dividend yield is calculated without the deduction of fees and expenses.
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.

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