Fund Description

The fund seeks capital appreciation and current income by investing predominantly in the securities of public utility companies, with a focus on companies operating in the U.S. electricity and gas sector.

Strategy Statement

"Over the fund's 60-year history, we've remained committed to our investment approach, working to provide investors with current income and relatively low volatility during various economic conditions."

John Kohli, CFA®, FRM, CPA

Management

John Kohli, CFA, FRM, CPA

John Kohli, CFA®, FRM, CPA

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 1998
Blair Schmicker, CFA, MBA

Blair Schmicker, CFA®, MBA

  • Joined Franklin Templeton in 2006
  • Managed Fund Since 2009

Rating

Overall Morningstar Rating As of 01/31/2018

Rating Category: Utilities

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 01/31/2018

Years Ratings Funds
in category
3
3 Stars
58
5
3 Stars
55
10
5 Stars
51

Morningstar Style Box As of12/31/2017

Strategy, Benefits, Results

Strategy

  • We search for solid opportunities in the utilities arena with a specific focus on the U.S. electricity and gas sector.
  • Our investment process is rooted in fundamental, bottom-up research, which involves speaking with a company's key management and observing its operations on location.
  • Generally, we favor regulated utility companies due to their more predictable earnings and cash flow.

Benefits

  • Income component. Due to the nature of the utilities industry, our fund has historically paid an attractive quarterly dividend.
  • Diversification. By adding investments from different sectors to your portfolio, you may take advantage of rotating economic cycles.
  • Increasing Demand. Investors may capitalize on an increasing demand for basic utilities.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • Investing in a fund concentrating in the utilities sector involves special risks, including increased susceptibility to adverse economic and regulatory developments affecting the sector.
  • Stocks historically have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term.
  • Securities issued by utility companies have been historically sensitive to interest rate changes.
  • When interest rates fall, utility securities prices, and thus a utilities fund’s share price, tend to rise; when interest rates rise, their prices generally fall.
  • These and other risks are described more fully in the fund’s prospectus.

Minimum Investment

See Prospectus

How Financial Advisors Help You

Speak to your advisor about whether this fund is appropriate for you.

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