Franklin Equity Income Fund Q3 2024 Commentary

Performance Data

Average Annual Total Returns 1(%)

		1 Mth	3 Mths	1 Year	3 Years	5 Years	10 Years	Since Inception	Inception Date
Advisor Class – With Sales Charges[a,b]		1.38	8.41	28.59	9.83	11.58	10.04	9.21	03/15/1988
Advisor Class – Without Sales Charges[a,b]		1.38	8.41	28.59	9.83	11.58	10.04	9.21	03/15/1988
Class A – With Sales Charges[a]		-4.22	2.41	21.24	7.51	10.04	9.15	8.92	03/15/1988
Class A – Without Sales Charges[a]		1.35	8.36	28.30	9.55	11.30	9.77	9.08	03/15/1988
Russell 1000 Value Index		1.39	9.43	27.76	9.02	10.69	9.23	10.25	–
S&P 500 Index		2.14	5.89	36.35	11.91	15.97	13.38	11.11	–
Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors’ shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns for periods of less than one year are not annualized. All classes of shares may not be available to all investors or through all distribution channels. For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/(800) 342-5236 or visit www.franklintempleton.com. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Share Class Details
			Sales Charges		Expenses			30-Day SEC Yields[2]
	CUSIP	Ticker	Max	CDSC	Gross	Net	Without Waiver		With Waiver
Advisor Class	353612633	FEIFX	–	–	0.59%	0.58%		1.68%	1.69%
Class A	353612401	FISEX	5.50%	–	0.84%	0.83%		1.36%	1.36%

The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. Source: FTSE.

Portfolio Diversification

Top Holdings % of Total
Top Holdings	%
JPMORGAN CHASE & CO	4.50
MORGAN STANLEY	3.48
CHEVRON CORP	3.22
JOHNSON & JOHNSON	2.76
BANK OF AMERICA CORP	2.75
PROCTER & GAMBLE CO	2.62
UNITEDHEALTH GROUP INC	2.41
HCA HEALTHCARE INC	2.37
NEXTERA ENERGY INC	2.32
DUKE ENERGY CORP	2.31

Footnotes

[1] Periods shorter than one year are shown as cumulative total returns.

[2] The fund’s 30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.

What Are The Risks?

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Distributions are not guaranteed and are subject to change. Investments in equity-linked notes often have risks similar to their underlying securities, which could include management risk, market risk and, as applicable, foreign securities and currency risks. Convertible securities are subject to the risks of stocks when the underlying stock price is high relative to the conversion price and debt securities when the underlying stock price is low relative to the conversion price. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The manager may consider environmental, social and governance criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.

Important Information

The information provided is not a complete analysis of every material fact regarding any country, market, industry, security or fund. Because market and economic conditions are subject to change, comments, opinions and analyses are rendered as of the date of this material and may change without notice. A portfolio manager’s assessment of a particular security, investment or strategy is not intended as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy; it is intended only to provide insight into the fund’s portfolio selection process. Holdings are subject to change.

Before investing, carefully consider a fund’s investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.

Franklin Distributors, LLC. Member FINRA/SIPC.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Source: FactSet. Important data provider notices and terms available at www.franklintempletondatasources.com.

[a] Gross expenses are the fund’s total annual operating expenses as of the fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns. Net expenses reflect contractual fee waivers, expense caps and/or reimbursements, which cannot be terminated prior to 02/28/2025 without Board consent. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice.

[b] Performance quotations for this class reflect the following methods of calculation: a) For periods prior to the fund’s Advisor Class inception date, a restated figure is used based on the fund’s oldest share class, Class A performance, excluding the effect of Class A’s maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and b) for periods after the fund’s Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.

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