Franklin Income Fund

Franklin Custodian Funds · Series S000006756 · 6 share classes

Bond fund · 72% debt· rate + credit risk filed
One fund, 6 share classes:FKINXFCISXFRIAXFISRXFNCFXFKIQX
$79.23B NAV
553 positions · as of 2026-06-30 · filed 2026-08-27
data updated 2026-09-08

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 Q2

98.85%
of net assets
Bonds65.10%
Stocks26.50%
Securitized5.18%
Loans1.32%
2 smaller0.82%
Derivatives-0.07%

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

2026Q2 vs 2026Q1: 78 new65 exited

Largest new: Goldman Sachs Bank USA into Amazon.com, Inc., CVS, Goldman Sachs Bank USA into Home Depot, Inc. (The), Morgan Stanley Finance LLC into Cisco Systems, Inc., Mizuho Markets Cayman LP into Abbott Laboratories, U.S. Treasury Bills, Royal Bank of Canada into Oracle Corp., Alphabet, Inc.

Largest exited: UBS AG into Marvell Technology, Inc., J.P. Morgan Structured Products BV into Home Depot, Inc. (The), Goldman Sachs Bank USA into Home Depot, Inc. (The), Mizuho Markets Cayman LP into Exxon Mobil Corp., Mizuho Markets Cayman LP into Amgen, Inc., Wells Fargo Bank NA into CVS Health Corp., U.S. Treasury Bills ×2

Return profile

Chart:

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

Share class1-year3-year5-yearVolWorst fall
+16.79%+31.27%+38.76%4.81%-7.31%
+16.28%+29.09%+35.46%4.76%-7.30%
+16.62%+31.51%+39.50%4.75%-6.94%
+16.37%+29.63%+36.16%4.79%-7.15%
+17.05%+32.05%+40.16%4.67%-7.30%
+16.23%+30.41%+37.51%4.51%-6.93%

These classes hold the same portfolio, so the 4.70pp spread over 5 years is the cost difference between them — roughly 0.94pp 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
7.00%
Avg maturity
6.87 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 rate97.7%
Floating rate1.9%
Zero-coupon or unclassified0.4%
Maturity ladder

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

<1y10y+
<1y29.0%
1-3y11.7%
3-5y16.4%
5-10y28.8%
10y+14.2%
Flagged holdings
Defaulted: none reported
In arrears: none reported
Paid in kind: 1.01% · $571.51M · 3 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
2.22 yr
approx. move per 100bp
Credit-spread duration
2.30 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.

+2.30
yrs total
Investment grade+1.62 yr
High yield+0.68 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 rate2.22 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.13 yr6%
5 yr0.81 yr36%
10 yr0.58 yr26%
30 yr0.70 yr31%
Credit spread2.30 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.13 yr6%
5 yr0.85 yr37%
10 yr0.61 yr26%
30 yr0.70 yr30%

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$27.0k$3.2k
1 yr+0.13+0.05+0.08$380.8k$673.1k
5 yr+0.81+0.42+0.43$3.31m$3.43m
10 yr+0.58+0.46+0.14$3.67m$1.13m
30 yr+0.70+0.68+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.

Holdings

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

Issuer%NAVValue
United States of America3.88% · due 2033-08-151.84%$1.46B
Exxon Mobil Corp.XOM1.73%$1.37B
Chevron Corp.CVX1.57%$1.24B
United States of America4.25% · due 2035-05-151.56%$1.24B
Procter & Gamble Co. (The)PG1.39%$1.10B
Home Depot, Inc. (The)HD1.33%$1.06B
Southern Co. (The)SO1.09%$861.39M
Air Products and Chemicals, Inc.APD0.93%$732.95M
United States of America4.75% · due 2055-05-150.92%$727.65M
PepsiCo, Inc.PEP0.85%$677.00M
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Reported price is the fund's own reported value divided by its own reported shares at 2026-06-30 — not a live quote, and not what the fund paid.

Top 10 positions are 13.20% of net assets, top 25 23.14%, across 289 issuers.

See more of this fund's book

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