Franklin High Income Fund

Franklin High Income Trust · 6 share classes

Actively managed U.S. bond fund
One fund, 6 share classes:FHAIXFCHIXFVHIXFHIRXFHRRXFHQRX
$2.90B NAV
360 positions · as of 2026-06-30 · filed 2026-08-27

Fund classification

Classified from what the fund holds · as of 2026 Q2

Franklin High Income Fund is an actively managed U.S. bond fund.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund
Credit quality
High yield
Rate sensitivity
Short duration

Fund profile

As filed in the prospectus · 2026 Q1

To earn a high level of current income. Its secondary goal is to seek capital appreciation to the extent it is possible and consistent with the Fund's principal goal.

Strategy · summarised

The fund invests predominantly in high-yield, lower-rated debt securities selected through fundamental analysis by its investment manager, which evaluates issuers' creditworthiness, management quality, and financial condition rather than relying principally on rating agency assessments. The fund may hold up to 100% of assets in below-investment-grade debt, including securities rated below B and defaulted securities, as well as foreign debt denominated in U.S. dollars. Because security selection depends on the manager's independent analysis, performance will diverge from any index or peer group.

Expenses
0.51% 1.24%across 6 share classes
Share classGrossNet
FHAIX0.75%0.74%
FCHIX1.25%1.24%
FVHIX0.60%0.59%
FHIRX1.10%1.09%
FHRRX0.53%0.51%
FHQRX0.85%0.84%

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

Portfolio turnover 39.11% · as of 2026 Q1

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

98.86%
of net assets
Bonds94.98%
Cash & short-term2.57%
Stocks0.95%
Loans0.35%
Other0.01%

Sector allocation

The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2

100%
of net assets
Other54.5%
International17.5%
Financials4.7%
Industrials4.3%
11 smaller19.0%

Government, Securitized and Cash are non-corporate buckets; International is foreign holdings we don’t sector-classify, and Other is the residual (held funds, unresolved names).

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 42 new36 exited

Largest new: Dexko Global, Inc., Edged Compute LLC, Encore Capital Group, Inc., Hilton Domestic Operating Co., Inc., PR RNO Property Owner 1 LLC, Bombardier, Inc., Directv Financing LLC / Directv Financing Co-Obligor, Inc., Neo Next+ Energy Consolidated Holdings Ltd.

Largest exited: Apollo Commercial Real Estate Finance, Inc., Smyrna Ready Mix Concrete LLC, Dornoch Debt Merger Sub, Inc., Nexstar Media, Inc., Teva Pharmaceutical Finance Netherlands III BV, Expand Energy Corp., LGI Homes, Inc., Seagate Data Storage Technology Pte. Ltd.

Return profile

Chart:

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

Share class1-year3-year5-yearVolWorst fall
+8.95%+28.26%+26.38%3.42%-2.51%
+8.84%+27.21%+23.33%2.95%-2.55%
+9.13%+28.87%+27.36%2.97%-2.48%
+8.91%+27.48%+24.73%2.91%-2.61%
+9.28%+29.39%+27.43%2.98%-2.49%
+8.99%+28.30%+25.45%3.01%-2.64%

These classes hold the same portfolio, so the 4.09pp spread over 5 years is the cost difference between them — roughly 0.82pp a year — not a difference in what they own.

Cumulative return· Jul 2023 – Apr 2026

May 2026 and Jun 2026 have been filed since the trailing figures were struck, so they are 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 2026-06-30

Avg coupon
7.07%
Avg maturity
4.97 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.

0%
floating
Fixed rate99.6%
Floating rate0.4%
Maturity ladder

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

<1y10y+
<1y1.1%
1-3y16.4%
3-5y36.6%
5-10y44.9%
10y+1.0%
Flagged holdings
Defaulted: 0.09% · $2.59M · 2 positions
In arrears: none reported
Paid in kind: 1.85% · $51.02M · 10 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 2026Q2

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
2.76 yr
approx. move per 100bp
Credit-spread duration
2.78 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.

≈ -5.5%
of value
Credit spreads50%
Interest rates50%

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.

+2.78
yrs total
High yield+2.68 yr
Investment grade+0.11 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 rate2.76 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.31 yr11%
5 yr1.78 yr64%
10 yr0.65 yr24%
30 yr0.02 yr1%
Credit spread2.78 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.32 yr11%
5 yr1.80 yr65%
10 yr0.65 yr23%
30 yr0.02 yr1%

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$0$167
1 yr+0.31+0.03+0.29$9.2k$82.6k
5 yr+1.78+0.07+1.73$19.2k$501.7k
10 yr+0.65+0.01+0.64$3.2k$185.5k
30 yr+0.02+0.00+0.02$0$4.8k

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 2.76 yr.

USD+2.76 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
Franklin Institutional U.S. Government Money Market FundINFXX2.42%$70.22M
Martin Midstream Partners LP / Martin Midstream Finance Corp.11.50% · due 2028-02-151.01%$29.24M
Wynn Resorts Finance LLC / Wynn Resorts Capital Corp.7.13% · due 2031-02-150.91%$26.43M
Mauser Packaging Solutions Holding Co.9.25% · due 2030-04-150.85%$24.62M
Weekley Homes LLC / Weekley Finance Corp.6.75% · due 2034-01-150.84%$24.37M
California Buyer Ltd. / Atlantica Sustainable Infrastructure plc6.38% · due 2032-02-150.83%$24.16M
Kedrion SpA6.50% · due 2029-09-010.82%$23.90M
Dexko Global, Inc.7.50% · due 2032-04-150.81%$23.31M
Rain Carbon, Inc.12.25% · due 2029-09-010.80%$23.15M
RR Donnelley & Sons Co.9.50% · due 2029-08-010.77%$22.39M
Showing 10 of 360Sign in to see more

Top 10 positions are 10.08% of net assets, top 25 19.86%, across 224 issuers.

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