PRICE AND YTD RETURN As of 05/27/2016

NAV up $0.00 $2.17
POP $2.27
YTD Total return at Nav 5.84%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 03/31/2016

Sales Charge

1 YEAR RETURN -10.89%
5 YEAR RETURN 3.51%
10 YEAR RETURN 4.76%

KEY STATS

Investment Category Income
Distributions Monthly
CUSIP 353 496 300
Fund Number 109
Inception Date Aug 31, 1948
Total Net Assets (all share classes) As of 04/30/2016 $77,687.2 (M)
Distribution Rate at NAV As of 05/27/2016 5.53%
30-Day Standardized yield As of 04/30/2016 (updated monthly)
w/ Waiver 4.40%
w/o Waiver 4.40%

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

Gross Expense Ratio 0.61%
Net Expense Ratio 0.61%
Max Initial Sales Charge 4.25%
CDSC 0.00%
12b-1 Fee 0.15%

Fund Description

The Fund seeks income by selecting investments such as corporate, foreign and U.S. Treasury bonds, as well as stocks with relatively high dividends.

Strategy Statement

"We follow a flexible, value-oriented investment philosophy seeking income and long-term capital appreciation potential by investing in dividend-paying stocks, convertible securities and bonds."

Edward D. Perks, CFA®

Management

Edward D. Perks, CFA

Edward D. Perks, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 2002
Matt Quinlan, MBA

Matt Quinlan, MBA

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2012
Alex W. Peters, CFA, MBA

Alex W. Peters, CFA®, MBA

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 2012

Strategy, Benefits, Results

Strategy

We seek to maximize income, while maintaining prospects for capital appreciation over the long term.

  • Using a value-oriented approach, we screen a broad universe of securities across asset classes, looking for those that we believe are undervalued or out-of-favor.
  • The fund has no set proportions on its allocations, which allows us to be flexible and actively select securities that present the best opportunities as market conditions change.
  • We tap the sector expertise of Franklin's equity and credit analysts when selecting investments for the fund, which helps maintain the fund's highly diversified approach.

Benefits

  • A Record of Consistent Dividends. Our fund's Class A shares have paid uninterrupted dividends for 60 calendar years.i.
  • Broad Diversification. Our fund has a diversified portfolio across several different asset classes, including dividend-paying stocks, bonds and convertible securities.
  • Experienced Management Team. Managers Ed Perks, Matt Quinlan, and Alex Peters have managed the fund since 2002, 2012, and 2012, respectively.

Investing In The Fund

What Are the Risks?
  • All investments involve risks, including possible loss of principal.
  • The fund’s share price and yield will be affected by interest rate movements.
  • Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value.
  • The fund’s portfolio includes a substantial portion of higher-yielding, lower-rated corporate bonds because of the relatively higher yields they offer.
  • Floating-rate loans are lower-rated, higher-yielding instruments, which are subject to increased risk of default and can potentially result in loss of principal. These securities carry a greater degree of credit risk relative to investment-grade securities.
  • Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.
  • The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results.
  • These and other risk considerations are discussed 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.

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