Beyond Bulls & Bears

A Flagship Sails Past 65

Unlike many of the 10,000 US baby boomers turning 65 on August 31, Franklin Income Fund, which also hits the 65-year mark that day, doesn’t aspire to retire. The fund has been providing a steady diet of dividends for decades, playing a strategic part in many investors’ income-oriented retirement portfolios. 

Here’s a fun fact: Someone born on August 31, 1948, who saved one dollar per day would have accumulated $23,725 (not accounting for interest or inflation) 65 years later. How much do you think you could have earned if you could invest a dollar per day in Franklin Income Fund?

Some more fun trivia related to August 31, 1948:

–The Dow Jones Industrial Average closed at 181.71 on August 31, 1948.

–Gold was trading at about $35 an ounce.

–The cost of a movie ticket was around 40 cents.

–The price of a gallon of gas was about 16 cents.

Portfolio Manager Ed Perks is one of only three individuals who have helmed Franklin Income Fund, becoming a co-manager in 2002, then taking the reins from Charlie Johnson in 2004 as lead manager. In this brief video, Perks looks back at market events during that time, what he learned from his predecessors, and offers some perspective on the fund’s longevity.



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What Are the Risks?

Dividends will vary, depending on the fund’s income, and past distributions are not indicative of future trends.

All investments involve risks, including possible loss of principal. Franklin Income Fund’s share price and yield will be affected by interest rate movements. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. Investments in lower-rated, higher-yielding instruments include higher risk of default and loss of principal. These securities carry a greater degree of credit risk relative to investment-grade securities. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions These and other risk considerations are discussed in the prospectus.

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