Fund Evaluator:
Franklin Income R (FISRX)
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Best Performing in Moderate Allocation Over the Last Year
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Fund Details
Franklin Income R Overview
Franklin Income R (FISRX) is an actively managed Allocation Moderate Allocation fund. Franklin Templeton Investments launched the fund in 2002.
The investment seeks to maximize income while maintaining prospects for capital appreciation. The fund invests in a diversified portfolio of debt and equity securities. The equity securities in which the fund invests consist primarily of common stocks. Debt securities include all varieties of fixed, floating and variable rate instruments, including secured and unsecured bonds, bonds convertible into common stock, senior floating rate and term loans, mortgage-backed securities and other asset-backed securities, debentures, and shorter term instruments. It may invest up to 100% of its total assets in debt securities that are rated below investment grade.
About Franklin Income R (FISRX)
There are 3 members of the management team with an average tenure of 13.73 years: Todd Brighton (2017), Brendan Circle (2019), Edward Perks (2002). 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 Russell 3000 TR USD index with a weighting of 100%. Franklin Income R has 556 securities in its portfolio. The top 10 holdings constitute 13.3% 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 Income R is part of the Allocation global asset class and is within the Allocation fund group. Franklin Income R has 4.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 23.2%. There is 1.8% allocated to foreign stock, and 18.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 53.3% (50.3% domestic bond, 3.0% foreign bond and 0.0% convertible bond). Franklin Income R has 3.5% of the portfolio in cash.
Assets Under Management
The fund has $370 million in total assets, which is below the $2 billion average for the Moderate Allocation 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.
FISRX 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 Income R expense ratio is high compared to funds in the Moderate Allocation category. Franklin Income R has an expense ratio of 0.96%, which is 3% lower than its category average, making the fund expense ratio grade a C. 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 Income R has a portfolio turnover rate of 62%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 52% for the Moderate Allocation category.
Recently, in the month of July 2026, Franklin Income R returned 0.8%, which earned it a grade of A, as the Moderate Allocation category had an average return of -0.3%. 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 Income R has a trailing yield of 5.03%, which is above the 1.97% 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 Income R Grades
Year to date, the fund has returned 5.6%, 0.9 percentage points worse than the category, which translates into a grade of D. The fund has returned 11.9% over the past year (grade of D), 9.0% over the past three years (grade of F) and 6.2% per year over the past five years (grade of D) and 6.8% per year over the past 10 years (grade of F).
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FISRX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FISRX Return (NAV) | 0.8% | 0.9% | 11.9% | 9.0% | 6.2% | 6.8% |
| FISRX Grade | A | F | D | F | D | F |
| +/- Category | 1.1% | -1.3% | -1.2% | -3.0% | -0.5% | -1.7% |
| Moderate Allocation Avg | -0.3% | 2.1% | 13.1% | 12.0% | 6.6% | 8.5% |
| FISRX Tax Cost Ratio | na | na | 2.2% | 2.1% | 2.2% | 2.0% |
FISRX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FISRX Return (NAV) | 5.6% | 11.7% | 6.9% | 7.9% | -5.5% | 17.2% | 3.3% | 15.1% | -5.7% | 8.2% | 16.2% |
| FISRX Grade | D | D | F | F | A | A | F | F | D | F | A |
| +/- Category | -0.9% | -1.7% | -5.3% | -6.4% | 8.4% | 2.8% | -9.7% | -4.7% | -0.6% | -5.6% | 8.5% |
| Moderate Allocation Avg | 6.4% | 13.4% | 12.2% | 14.3% | -14.0% | 14.4% | 12.9% | 19.8% | -5.1% | 13.8% | 7.7% |
| Risk Measures | |
| Standard Deviation: | 7.3% |
| Total Risk Index: | 0.60 - Below Average |
| Category Risk Index: | 0.79 - Low |
| Category Risk Grade: | A (3% Rank) |
| Beta: | 0.66 |
| R-Squared: | 73% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Value |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 5.0% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $79545 Mil |
| Fund Total Assets: | $ 370 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 62% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 24.3 years | |||
| Average Tenure: 13.7 years | |||
| Managers (Year): Perks Edward (2002), Brighton Todd (2017), Circle Brendan (2019) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 556 |
| % in Top 10 Holdings: | 13.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 4.9% |
Portfolio Allocation |
|
| Domestic Stock: | 23.2% |
| Foreign Stock: | 1.8% |
| Preferred Stock: | 18.2% |
| Domestic Bond: | 50.3% |
| Foreign Bond: | 3.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.1% |
| Cash: | 3.5% |
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 (%): | 0.96% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.99% |
| Share Class: | Franklin Income A1 |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
