PRICE AND YTD RETURN As of 07/22/2016

NAV up $0.21 $18.87
POP $19.71
YTD Total return at Nav 24.05%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 06/30/2016

Sales Charge

1 YEAR RETURN 21.18%
5 YEAR RETURN 12.45%
10 YEAR RETURN 9.30%


Investment Category Sector
Distributions Quarterly
CUSIP 353 496 409
Fund Number 107
Inception Date Sep 30, 1948
Total Net Assets (all share classes) As of 06/30/2016 $6,682.2 (M)
Distribution Rate at NAV As of 07/22/2016 2.44%
30-Day Standardized yield As of 06/30/2016 (updated monthly)
w/ Waiver 2.50%
w/o Waiver 2.49%

SALES CHARGE, EXPENSES, & FEES As of 02/01/2016 (updated annually)

Gross Expense Ratio 0.73%
Net Expense Ratio 0.73%
Max Initial Sales Charge 4.25%
CDSC 0.00%
12b-1 Fee 0.15%

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


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

Overall Morningstar Rating As of 06/30/2016

Rating Category: Utilities

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 06/30/2016

Years Ratings Funds
in category
3 Stars
4 Stars
4 Stars

Morningstar Style Box As of 03/31/2016

Strategy, Benefits, Results


  • 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.


  • 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.
  • 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


How Financial Advisors Help You

Speak to your financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

You need Adobe Acrobat Reader 6.0 or higher to view and print PDF documents. Download a free version from Adobe's website.