Franklin Income Fund

Franklin Custodian Funds · Series S000006756 · 6 share classes

Bond fund · 69% debt· rate + credit risk filed
One fund, 6 share classes:FKINXFCISXFRIAXFISRXFNCFXFKIQX
$78.63B NAV
540 positions · as of 2026-03-31 · filed 2026-05-27
data updated 2026-08-10

Fund profile

As filed in the prospectus · 2026 Q1

To maximize income while maintaining prospects for capital appreciation.

Strategy · summarised

The fund pursues a bottom-up value approach, seeking undervalued securities across debt and equity markets by analyzing factors such as anticipated cash flow, earnings prospects, asset coverage, and management quality; it expects to hold 20–30% in below-investment-grade debt but may reach 35%, and may allocate up to 25% to foreign securities and equity-linked notes. The fund employs equity and interest-rate derivatives to enhance returns, hedge risks, and gain efficient exposure. Because security selection depends on the manager's analysis of individual opportunities rather than a benchmark, performance will diverge from any index. The fund distributes twelve level monthly payments annually.

Expenses
0.41% 1.11%across 6 share classes
Share classGrossNetAs of
FKINX0.61%0.61%2025 Q1
FCISX1.11%1.11%2025 Q1
FRIAX0.46%0.46%2025 Q1
FISRX0.96%0.96%2025 Q1
FNCFX0.42%0.41%2025 Q1
FKIQX0.71%0.71%2025 Q1

Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.

Portfolio turnover 62.14% · as of 2026 Q1

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q1

100.17%
of net assets
Bonds62.46%
Stocks28.49%
Securitized5.61%
Cash & short-term2.44%
2 smaller1.21%
Derivatives-0.04%

The outer band is exposure held short — written against the portfolio rather than part of it, which is why it sits outside the ring and why the two are never netted into one figure.

Derivatives are shown at market value, not notional exposure.

Latest quarter

What changed since the fund's previous filing

vs 2025Q4: 90 new95 exited

Largest new: United States of America, Wells Fargo Bank NA into Amazon.com, Inc., Citigroup Global Markets Holdings, Inc. into Microsoft Corp., Merrill Lynch BV into Procter & Gamble Co. (The), Citigroup Global Markets Holdings, Inc. into Halliburton Co., JPMorgan Chase Bank NA into Schlumberger NV, Barclays Bank plc into Freeport-McMoRan, Inc., Barclays Bank plc into Capital One Financial Corp.

Largest exited: United States of America, Accenture plc, AMGN, Merrill Lynch BV into Microsoft Corp., CommScope LLC, Royal Bank of Canada into Cisco Systems, Inc., Wells Fargo Bank NA into Citigroup, Inc., TDG

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Feb 2026

Share class1-year3-year5-yearVolWorst fall
Cumulative return· Apr 2023 – Feb 2026

Mar 2026 has been filed since the trailing figures were struck, so it is not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-03-31

Avg coupon
6.88%
Avg maturity
7.08 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

2%
floating
Fixed rate98.0%
Floating rate1.6%
Zero-coupon or unclassified0.4%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y29.1%
1-3y10.7%
3-5y16.9%
5-10y28.4%
10y+14.8%
Flagged holdings
Defaulted: none reported
In arrears: none reported
Paid in kind: 0.98% · $530.45M · 4 positions

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q1

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
2.16 yr
approx. move per 100bp
Credit-spread duration
2.22 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -4.5%
of value
Credit spreads51%
Interest rates49%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+2.22
yrs total
Investment grade+1.59 yr
High yield+0.63 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate2.16 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.12 yr6%
5 yr0.74 yr34%
10 yr0.58 yr27%
30 yr0.71 yr33%
Credit spread2.22 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.13 yr6%
5 yr0.78 yr35%
10 yr0.61 yr27%
30 yr0.71 yr32%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.00+0.00+0.00$38.2k$299
1 yr+0.12+0.05+0.07$405.5k$587.1k
5 yr+0.74+0.38+0.40$2.98m$3.13m
10 yr+0.58+0.47+0.13$3.71m$1.05m
30 yr+0.71+0.69+0.02$5.40m$143.7k

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Rate exposure by currency

Duration contribution in years, summing to the fund's 2.16 yr.

USD+2.16 yr
EUR+0.00 yr

This is where the fund's rate exposure sits, not its currency risk — most international bond funds hedge the currency back to dollars, and the size of those hedges is not in the filing. Tenors are also summed across curves, so a 5-year JPY point and a 5-year USD point are added together.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
Exxon Mobil Corp.XOM2.16%$1.70B
Chevron Corp.CVX1.97%$1.55B
United States of America3.88% · due 2033-08-151.87%$1.47B
United States of America4.25% · due 2035-05-151.59%$1.25B
Procter & Gamble Co. (The)PG1.56%$1.23B
Southern Co. (The)SO1.10%$868.68M
PepsiCo, Inc.PEP0.99%$776.45M
United States of America4.75% · due 2055-05-150.93%$730.52M
Air Products and Chemicals, Inc.APD0.92%$726.23M
Home Depot, Inc. (The)HD0.84%$657.78M
Showing 10 of 540Sign in to see more

Top 10 positions are 13.93% of net assets, top 25 24.27%, across 289 issuers.

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