Fund Evaluator:
Franklin Equity Income R (FREIX)
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Fund Details
Franklin Equity Income R Overview
Franklin Equity Income R (FREIX) is an actively managed U.S. Equity Large Value fund. Franklin Templeton Investments launched the fund in 2002.
The investment seeks to maximize total return by emphasizing high current income and long-term capital appreciation, consistent with reasonable risk. The fund normally invests at least 80% of its net assets in equity securities, including securities convertible into common stocks. It generally invests primarily in common stocks, and the remainder of its assets in other equity-related instruments such as convertible securities, equity-linked notes (ELNs) and REITs. The fund may invest in foreign securities, but does not currently anticipate investing more than 15% of its total assets in securities of issuers domiciled outside the United States.
About Franklin Equity Income R (FREIX)
There are 2 members of the management team with an average tenure of 8.09 years: Matthew Quinlan (2011), Daniel Nuckles (2025). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 1000 Value TR USD index with a weighting of 100%. Franklin Equity Income R has 93 securities in its portfolio. The top 10 holdings constitute 28.3% 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 Equity Income R is part of the Equity global asset class and is within the U.S. Equity fund group. Franklin Equity Income R has 4.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 78.1%. There is 4.9% allocated to foreign stock, and 13.3% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 2.2% (2.2% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Franklin Equity Income R has 1.6% of the portfolio in cash.
Assets Under Management
The fund has $19 million in total assets, which is below the $1 billion average for the Large Value 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.
FREIX 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 Equity Income R expense ratio is high compared to funds in the Large Value category. Franklin Equity Income R has an expense ratio of 1.05%, which is 14% 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 Equity Income R has a portfolio turnover rate of 33%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 62% for the Large Value category.
Recently, in the month of July 2026, Franklin Equity Income R returned 3.8%, which earned it a grade of B, as the Large Value category had an average return of 2.9%. 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 Equity Income R has a trailing yield of 1.23%, which is above the 1.20% category average. The fund normally distributes its income quarterly 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 Equity Income R Grades
Year to date, the fund has returned 13.3%, 1.0 percentage points worse than the category, which translates into a grade of C. The fund has returned 21.2% over the past year (grade of D), 16.4% over the past three years (grade of B) and 11.1% per year over the past five years (grade of C) and 11.5% per year over the past 10 years (grade of C).
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FREIX 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 |
|
| FREIX Return (NAV) | 3.8% | 5.2% | 21.2% | 16.4% | 11.1% | 11.5% |
| FREIX Grade | B | D | D | B | C | C |
| +/- Category | 0.9% | -1.1% | -2.6% | 0.8% | 0.2% | 0.2% |
| Large Value Avg | 2.9% | 6.2% | 23.8% | 15.7% | 10.9% | 11.3% |
| FREIX Tax Cost Ratio | na | na | 2.3% | 2.0% | 1.8% | 1.6% |
FREIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FREIX Return (NAV) | 13.3% | 16.7% | 17.7% | 8.8% | -7.1% | 24.9% | 5.3% | 25.2% | -4.9% | 15.7% | 11.5% |
| FREIX Grade | C | B | A | D | D | D | B | C | A | D | F |
| +/- Category | -1.0% | 1.5% | 3.6% | -3.1% | -1.0% | -0.9% | 1.5% | -0.4% | 3.6% | -0.7% | -3.0% |
| Large Value Avg | 14.3% | 15.2% | 14.1% | 11.8% | -6.0% | 25.8% | 3.8% | 25.6% | -8.5% | 16.4% | 14.6% |
| Risk Measures | |
| Standard Deviation: | 11.2% |
| Total Risk Index: | 0.92 - Average |
| Category Risk Index: | 0.93 - Below Average |
| Category Risk Grade: | B (22% Rank) |
| Beta: | 0.71 |
| R-Squared: | 68% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Value |
| Bond Investment Style: | na |
| Yield: | 1.2% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $5032 Mil |
| Fund Total Assets: | $ 19 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 33% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 15.4 years | |||
| Average Tenure: 8.1 years | |||
| Managers (Year): Quinlan Matthew (2011), Nuckles Daniel (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 93 |
| % in Top 10 Holdings: | 28.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 4.9% |
Portfolio Allocation |
|
| Domestic Stock: | 78.1% |
| Foreign Stock: | 4.9% |
| Preferred Stock: | 13.3% |
| Domestic Bond: | 2.2% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.6% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-342-5236 |
| Website: | www.franklintempleton.com |
| Status: | Open |
| Inception Date: | August 1, 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 (%): | 1.05% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.93% |
| Share Class: | Franklin Equity Income A |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
