PRICE AND YTD RETURN As of 02/11/2016

NAV down $-0.26 $16.06
POP $16.77
YTD Total return at Nav 4.15%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 12/31/2015

Sales Charge

1 YEAR RETURN -11.33%
5 YEAR RETURN 9.77%
10 YEAR RETURN 7.59%

KEY STATS

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 01/31/2016 $5,358.4 (M)
Distribution Rate at NAV As of 02/11/2016 2.95%
30-Day Standardized yield As of 01/31/2016 (updated monthly)
w/ Waiver 2.92%
w/o Waiver 2.92%

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

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

Overall Morningstar Rating As of 01/31/2016

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 01/31/2016

Years Ratings Funds
in category
3
3 Stars
63
5
4 Stars
61
10
4 Stars
56

Morningstar Style Box As of 12/31/2015

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.
  • 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

$1,000.00

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.

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