Franklin Managed Income Fund
Moderate allocation fund
As of its 2026 Q2 report, Franklin Managed Income Fund held 173 positions with $3.47B in net assets. Its ten largest holdings made up 19.3% of the fund. The FBLAX share class costs 0.9% a year. Over the 12 months to May 2026, FBLAX returned 15.6%, with dividends reinvested. In 2026 Q3 it added 27 new positions and exited 9.
To maximize income to support monthly distributions, while maintaining the prospects for capital appreciation.
The fund invests in a diversified mix of dividend-paying stocks and investment-grade debt securities, with at least 25% in each asset class, using a bottom-up approach that evaluates individual securities on earnings potential, asset value, cash flow and valuation metrics. The fund employs derivatives including equity options, interest rate swaps, currency forwards and credit default swaps to enhance returns, increase liquidity or hedge risks. Because performance depends on the manager's security selection and the effectiveness of derivative strategies, results may diverge from broad market returns. The fund distributes twelve level monthly payments annually, with a targeted payout rate between 2.75% and 6.25% of prior year-end net asset value.
What you own
| Company | Weight | Value | Shares | Reported price |
|---|---|---|---|---|
GNMA 5.50% · due 2055-10-20 | 2.86% | $99.00M | — | — |
GNMA 5.50% · due 2055-02-20 | 2.17% | $75.34M | — | — |
INFXXFranklin Institutional U.S. Government Money Market Fund | 2.08% | $72.20M | — | — |
1.91% | $66.19M | 450.0K | $147.09 | |
United States of America 0.00% · due 2054-08-15 | 1.83% | $63.57M | — | — |
1.81% | $62.83M | 325.0K | $193.31 | |
1.78% | $61.73M | 400.0K | $154.33 | |
United States of America 4.75% · due 2055-05-15 | 1.66% | $57.70M | — | — |
1.62% | $56.22M | 200.0K | $281.08 | |
1.60% | $55.47M | 350.0K | $158.49 |
Reported price is the fund's own reported value divided by its own reported shares at 2026-04-30 — not a live quote, and not what the fund paid.
All 173 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%.
| Stocks | 43.35% |
| Bonds | 42.06% |
| Securitized | 12.56% |
| Cash & short-term | 2.08% |
By sector
- Financials
- 13.3%
- Securitized
- 12.7%
- Other
- 11.7%
- Information Technology
- 8.7%
- 12 other sectors
- 53.6%
- Financials
- 13.3%
- Securitized
- 12.7%
- Other
- 11.7%
- Information Technology
- 8.7%
- International
- 8.6%
- Utilities
- 8.0%
- Health Care
- 5.8%
- Industrials
- 5.8%
- Energy
- 5.0%
- Consumer Discretionary
- 4.5%
- Consumer Staples
- 4.2%
- Government
- 3.4%
- Communication Services
- 3.2%
- Cash
- 2.6%
- Materials
- 1.9%
- Real Estate
- 0.6%
How it has done
FBLAX share class · total returns with dividends reinvested
Volatility over the last 12 months: 5.93%. Past returns are a record, not a forecast.
Jun 2026 and Jul 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.
The 5 share classes hold the same portfolio
| Share class | Expense ratio | 1 year | 3 years | 5 years | Worst fall |
|---|---|---|---|---|---|
| 0.90% | +15.57% | +31.40% | +29.21% | -7.60% | |
| 1.65% | +14.78% | +28.51% | +24.42% | -7.79% | |
| 1.15% | +15.34% | +30.47% | +27.67% | -7.71% | |
| 0.65% | +15.91% | +32.42% | +30.81% | -7.52% | |
| 0.59% | +15.98% | +32.59% | +31.20% | -7.57% |
These classes hold the same portfolio, so the 6.78pp spread over 5 years is the cost difference between them — roughly 1.36pp a year — not a difference in what they own.
Fees & fund details
Franklin Managed Income Fund is a moderate allocation fund. 0% of FBLAX’s stock holdings are in companies whose revenue grew in the top quartile of U.S. companies over the last five fiscal years (covering 90% of the fund’s equity).
- Asset class
- Allocation (multi-asset)
- Region
- United States
- Management
- Actively managed
- Fund type
- Open-end fund
- Equity exposure
- Moderate
- Expense ratio, by class
- 0.59% – 1.65%· FBLAX 0.90%
- Portfolio turnover
- 42.27% 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.
27 new· the largest 6
9 exited· the largest 8
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30
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 | 96.6% |
| Zero-coupon or unclassified | 3.4% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 16.1% |
| 1-3y | 3.7% |
| 3-5y | 13.1% |
| 5-10y | 34.1% |
| 10y+ | 33.0% |
Based on what filers reported; a filer that never reported a flag also reads as none.
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.
| Investment grade | +2.64 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 1 yr | 0.08 yr | 3% |
| 5 yr | 0.79 yr | 30% |
| 10 yr | 0.62 yr | 24% |
| 30 yr | 1.14 yr | 43% |
| 1 yr | 0.08 yr | 3% |
| 5 yr | 0.80 yr | 30% |
| 10 yr | 0.63 yr | 24% |
| 30 yr | 1.14 yr | 43% |
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 | $0 |
| 1 yr | +0.08 | +0.08 | +0.00 | $26.0k | $0 |
| 5 yr | +0.79 | +0.80 | +0.00 | $276.0k | $0 |
| 10 yr | +0.62 | +0.63 | +0.00 | $217.7k | $0 |
| 30 yr | +1.14 | +1.14 | +0.00 | $396.3k | $0 |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
A newer credit-spread reading (2026Q3) is on file. This page holds one quarter across every figure on it, so that one appears here next quarter.
Understand how this fund fits with the rest.
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