Fund Evaluator:
Franklin High Income R (FHIRX)
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Best Performing in High Yield Bond Over the Last Year
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Fund Details
Franklin High Income R Overview
Franklin High Income R (FHIRX) is an actively managed Taxable Bond High Yield Bond fund. Franklin Templeton Investments launched the fund in 2002.
The investment seeks 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. Lower-rated securities generally pay higher yields than more highly rated securities to compensate investors for the higher risk. These securities include bonds, notes, debentures, convertible securities and senior and subordinated debt securities. It may invest up to 100% of its total assets in debt securities that are rated below investment grade, also known as "junk bonds."
About Franklin High Income R (FHIRX)
There are 4 members of the management team with an average tenure of 5.75 years: Bryant Dieffenbacher (2020), James McGiveran (2020), Robert Salvin (2026), Glenn Voyles (2015). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US HY Constnd TR USD index with a weighting of 100%. Franklin High Income R has 361 securities in its portfolio. The top 10 holdings constitute 10.4% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Franklin High Income R is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Franklin High Income R has 16.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.3%. There is 0.0% allocated to foreign stock, and 0.4% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 96.2% (79.9% domestic bond, 16.3% foreign bond and 0.2% convertible bond). Franklin High Income R has 2.9% of the portfolio in cash.
Assets Under Management
The fund has $61 million in total assets, which is below the $545 million average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FHIRX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin High Income R expense ratio is high compared to funds in the High Yield Bond category. Franklin High Income R has an expense ratio of 1.09%, which is 19% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin High Income R has a portfolio turnover rate of 39%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 71% for the High Yield Bond category.
Recently, in the month of June 2026, Franklin High Income R returned 0.5%, which earned it a grade of A, as the High Yield Bond category had an average return of 0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Franklin High Income R has a trailing yield of 5.76%, which is below the 6.26% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Franklin High Income R Grades
Year to date, the fund has returned 1.8%, 0.2 percentage points worse than the category, which translates into a grade of C. The fund has returned 5.3% over the past year (grade of C), 8.4% over the past three years (grade of B) and 4.2% per year over the past five years (grade of B) and 5.6% per year over the past 10 years (grade of B).
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FHIRX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FHIRX Return (NAV) | 0.5% | 2.0% | 5.3% | 8.4% | 4.2% | 5.6% |
| FHIRX Grade | A | D | C | B | B | B |
| +/- Category | 0.3% | -0.4% | -0.4% | 0.3% | 0.4% | 0.5% |
| High Yield Bond Avg | 0.2% | 2.4% | 5.7% | 8.1% | 3.8% | 5.1% |
| FHIRX Tax Cost Ratio | na | na | 2.3% | 2.3% | 2.2% | 2.2% |
FHIRX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FHIRX Return (NAV) | 1.8% | 8.3% | 7.8% | 13.1% | -9.9% | 5.1% | 6.2% | 14.2% | -4.0% | 6.8% | 18.5% |
| FHIRX Grade | C | C | C | A | B | C | B | C | F | C | A |
| +/- Category | -0.2% | 0.4% | 0.2% | 1.2% | 0.1% | -0.0% | 1.0% | 1.2% | -1.3% | 0.1% | 5.1% |
| High Yield Bond Avg | 1.9% | 7.9% | 7.6% | 11.9% | -10.0% | 5.1% | 5.3% | 13.0% | -2.7% | 6.7% | 13.4% |
| Risk Measures | |
| Standard Deviation: | 4.3% |
| Total Risk Index: | 0.35 - Low |
| Category Risk Index: | 1.06 - Above Average |
| Category Risk Grade: | D (62% Rank) |
| Beta: | 0.58 |
| R-Squared: | 58% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Value |
| Bond Investment Style: | Low Quality Limited Sensitivity |
| Yield: | 5.8% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $2895 Mil |
| Fund Total Assets: | $ 61 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 39% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 11.2 years | |||
| Average Tenure: 5.8 years | |||
| Managers (Year): Voyles Glenn (2015), Dieffenbacher Bryant (2020), McGiveran James (2020), Salvin Robert (2026) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 361 |
| % in Top 10 Holdings: | 10.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 16.3% |
Portfolio Allocation |
|
| Domestic Stock: | 0.3% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.4% |
| Domestic Bond: | 79.9% |
| Foreign Bond: | 16.3% |
| Convertible Bond: | 0.2% |
| Other: | 0.0% |
| Cash: | 2.9% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-342-5236 |
| Website: | www.franklintempleton.com |
| Status: | Open |
| Inception Date: | January 2, 2002 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 250 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.50% |
Expenses and Fees | |
| Expense Ratio (%): | 1.09% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.92% |
| Share Class: | Franklin High Income A1 |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
