Franklin High Income Fund
Actively managed U.S. bond fund
As of its 2026 Q2 report, Franklin High Income Fund held 360 positions with $2.90B in net assets. Its ten largest holdings made up 10.1% of the fund. The FHAIX share class costs 0.74% a year. Over the 12 months to May 2026, FHAIX returned 7.1%, with dividends reinvested. In 2026 Q2 it added 42 new positions and exited 36.
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.
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.
What you own
| Company | Weight | Value | Shares |
|---|---|---|---|
INFXXFranklin Institutional U.S. Government Money Market Fund | 2.42% | $70.22M | — |
Martin Midstream Partners LP / Martin Midstream Finance Corp. 11.50% · due 2028-02-15 | 1.01% | $29.24M | — |
Wynn Resorts Finance LLC / Wynn Resorts Capital Corp. 7.13% · due 2031-02-15 | 0.91% | $26.43M | — |
Mauser Packaging Solutions Holding Co. 9.25% · due 2030-04-15 | 0.85% | $24.62M | — |
Weekley Homes LLC / Weekley Finance Corp. 6.75% · due 2034-01-15 | 0.84% | $24.37M | — |
California Buyer Ltd. / Atlantica Sustainable Infrastructure plc 6.38% · due 2032-02-15 | 0.83% | $24.16M | — |
Kedrion SpA 6.50% · due 2029-09-01 | 0.82% | $23.90M | — |
Dexko Global, Inc. 7.50% · due 2032-04-15 | 0.81% | $23.31M | — |
Rain Carbon, Inc. 12.25% · due 2029-09-01 | 0.80% | $23.15M | — |
RR Donnelley & Sons Co. 9.50% · due 2029-08-01 | 0.77% | $22.39M | — |
The 200 largest of 360 holdings, with the share counts as filed, open with a free account.
What the fund is made of
Percentages are of fund net assets. Rounding, liabilities and short positions can make totals differ from 100%.
| Bonds | 94.98% |
| Cash & short-term | 2.57% |
| Stocks | 0.95% |
| Loans | 0.35% |
| Other | 0.01% |
By sector
- Other
- 54.5%
- International
- 17.5%
- Financials
- 4.7%
- Industrials
- 4.3%
- 11 other sectors
- 19.0%
- Other
- 54.5%
- International
- 17.5%
- Financials
- 4.7%
- Industrials
- 4.3%
- Communication Services
- 3.1%
- Cash
- 2.6%
- Materials
- 2.5%
- Energy
- 2.3%
- Consumer Discretionary
- 2.2%
- Utilities
- 1.9%
- Information Technology
- 1.5%
- Health Care
- 1.5%
- Real Estate
- 0.9%
- Consumer Staples
- 0.4%
- Government
- 0.2%
How it has done
FHAIX share class · total returns with dividends reinvested
Volatility over the last 12 months: 2.96%. Past returns are a record, not a forecast.
Jun 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.
The 6 share classes hold the same portfolio
| Share class | Expense ratio | 1 year | 3 years | 5 years | Worst fall |
|---|---|---|---|---|---|
| 0.74% | +7.06% | +30.55% | +26.51% | -2.51% | |
| 1.24% | +6.98% | +28.66% | +23.46% | -2.55% | |
| 0.59% | +7.86% | +31.16% | +27.50% | -2.48% | |
| 1.09% | +7.08% | +28.98% | +24.16% | -2.61% | |
| 0.51% | +8.00% | +31.70% | +27.56% | -2.49% | |
| 0.84% | +7.69% | +30.61% | +25.58% | -2.64% |
These classes hold the same portfolio, so the 4.11pp spread over 5 years is the cost difference between them — roughly 0.82pp a year — not a difference in what they own.
Fees & fund details
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
- Expense ratio, by class
- 0.51% – 1.24%· FHAIX 0.74%
- Portfolio turnover
- 39.11% a year · as of 2026 Q1
Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.
Turnover is how much of the portfolio was replaced in a year.
Classified from what the fund holds, not from its name · 2026 Q2. The summary is a paraphrase of the prospectus; the objective is verbatim.
What changed this quarter
Positions that entered or left the fund since its previous filing. Positions that were only resized are not listed.
42 new· the largest 8
36 exited· the largest 8
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-06-30
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 99.6% |
| Floating rate | 0.4% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 1.1% |
| 1-3y | 16.4% |
| 3-5y | 36.6% |
| 5-10y | 44.9% |
| 10y+ | 1.0% |
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.
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.
| Credit spreads | 50% |
| Interest rates | 50% |
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.
Share of the fund's spread duration carried by each credit tier.
| High yield | +2.68 yr |
| Investment grade | +0.11 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.31 yr | 11% |
| 5 yr | 1.78 yr | 64% |
| 10 yr | 0.65 yr | 24% |
| 30 yr | 0.02 yr | 1% |
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.32 yr | 11% |
| 5 yr | 1.80 yr | 65% |
| 10 yr | 0.65 yr | 23% |
| 30 yr | 0.02 yr | 1% |
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
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/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.
Duration contribution in years, summing to the fund's 2.76 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.
Understand how this fund fits with the rest.
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