UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number 811-00537
 
Franklin Custodian Funds
(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA  94403-1906

(Address of principal executive offices) (Zip code)
 
Alison Baur, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)
 
Registrant's telephone number, including area code: 650 312-2000
 
Date of fiscal year end: 9/30
 
Date of reporting period: 3/31/22
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report.
Not Applicable
.
 
 
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Custodian
Funds
March
31,
2022
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
Shareholder
Letter
Dear
Shareholder:
During
the
six
months
ended
March
31,
2022,
the
U.S.
economy
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment,
rising
wages
and
growing
business
confidence.
Although
investors
became
concerned
that
new,
swiftly
spreading
COVID-19
variants
could
hinder
the
economic
recovery,
growth
accelerated
in
2021’s
fourth
quarter
as
the
reopening
of
businesses,
widespread
COVID-19
vaccinations
and
federal
assistance
programs
continued
to
boost
consumer
spending.
Inflation
remained
elevated
during
the
reporting
period,
given
supply
and
demand
imbalances
related
to
the
pandemic,
higher
energy
prices
exacerbated
by
Russia’s
invasion
of
Ukraine,
and
broader
price
pressures.
During
the
reporting
period,
the
U.S.
Federal
Reserve,
in
its
efforts
to
encourage
ongoing
U.S.
economic
activity,
continued
quantitative
easing
measures
to
bolster
credit
markets.
However,
the
Federal
Reserve
decreased
its
monthly
asset
purchases
starting
in
November
2021,
increased
its
tapering
in
subsequent
months
and
ended
purchases
in
March
2022.
In
support
of
its
goal
of
achieving
maximum
employment
and
returning
annual
inflation
to
2%
over
the
long
term,
the
Federal
Reserve
raised
the
federal
funds
rate
by
0.25%,
from
a
level
of
0.25%
to
0.50%
at
its
March
meeting.
The
10-year
U.S.
Treasury
yield
was
1.52%
on
September
30,
2021,
and
it
increased
to
2.32%
by
the
end
of
March
2022.
In
this
environment,
the
prices
of
U.S.
stocks,
as
measured
by
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
rose
5.17%,
(the
index
increasing
from
4,307.54
to
4,530.41).
1
,2
Reflecting
the
rise
in
interest
rates,
investment-
grade
bonds,
as
measured
by
the
Bloomberg
U.S.
Aggregate
Bond
Index
(Bloomberg
Index),
posted
a
-5.92%
total
return
(an
index
decrease
from
2,352.55
to
2,215.38),
which
includes
reinvestment
of
interest
income.
3
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
we
conduct
a
rigorous,
fundamental
analysis
of
securities
with
a
regular
emphasis
on
investment
risk
management.
We
believe
active,
professional
investment
management
serves
investors
well.
We
also
recognize
the
important
role
of
financial
professionals
in
today’s
markets
and
encourage
investors
to
continue
to
seek
their
advice.
Amid
changing
markets
and
economic
conditions,
we
are
confident
investors
with
a
well-diversified
portfolio
and
a
patient,
long-term
outlook
should
be
well-positioned
for
the
years
ahead.
Franklin
Custodian
Funds’
semiannual
report,
covering
Franklin
DynaTech
Fund,
Franklin
Focused
Growth
Fund,
Franklin
Growth
Fund,
Franklin
Income
Fund,
Franklin
U.S.
Government
Securities
Fund
and
Franklin
Utilities
Fund,
includes
more
detail
about
investment
decisions
during
the
period.
All
securities
markets
fluctuate
in
value,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin,
welcome
your
questions
and
comments,
and
look
forward
to
serving
your
future
investment
needs.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Custodian
Funds
This
letter
reflects
our
analysis
and
opinions
as
of
March
31,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Copyright
©
2022,
S&P
Dow
Jones
Indices
LLC.
All
rights
reserved.
2.
Source:
Morningstar.
The
changes
in
index
prices
shown
for
the
S&P
500
do
not
include
reinvestments
of
income
and
distributions,
which
are
included
in
its
total
return,
which
was:
S&P
500
+5.92%
(index
total
return
resulting
in
an
increase
from
8,994.83
to
9,527.46).
3.
Sources:
Morningstar
and
Bloomberg
indexes.
For
the
Bloomberg
Index,
only
total
return
as
shown
is
available,
not
price
change
without
the
inclusion
of
reinvested
income
and
distributions.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Economic
and
Market
Overview
3
Franklin
DynaTech
Fund
4
Franklin
Focused
Growth
Fund
10
Franklin
Growth
Fund
16
Franklin
Income
Fund
21
Franklin
U.S.
Government
Securities
Fund
28
Franklin
Utilities
Fund
33
Financial
Highlights
and
Schedules
of
Investments
38
Financial
Statements
107
Notes
to
Financial
Statements
117
Shareholder
Information
143
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Economic
and
Market
Overview
U.S.
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
posted
a
+5.92%
total
return
for
the
six
months
ended
March
31,
2022.
1
Stocks
benefited
from
the
continued
economic
recovery,
as
strong
household
balance
sheets
helped
consumers
drive
growth.
However,
elevated
demand
combined
with
supply
chain
disruptions
led
to
the
highest
inflation
since
1982.
Russia’s
invasion
of
Ukraine
late
in
the
six-month
period
injected
further
uncertainty
into
financial
markets,
provoking
significant
volatility
in
commodity
and
equity
prices.
Rising
interest
rates
also
pressured
stocks,
as
borrowing
costs
began
to
increase
from
historically
low
levels.
The
U.S.
economy
continued
to
recover,
and
gross
domestic
product
growth
was
robust
in
the
fourth
quarter
of
2021
as
strong
consumer
spending
and
business
investment
in
growing
inventories
supported
the
economy.
However,
rising
prices
precipitated
a
notable
decline
in
consumer
confidence,
despite
high
spending
levels.
The
inflation
rate
was
elevated
during
the
six-month
period
amid
increased
demand
and
supply
chain
bottlenecks.
U.S.
consumer
spending
on
goods
remained
strong,
adding
to
pressure
on
the
prices
of
many
products.
Energy
costs
also
rose,
as
oil
prices
increased
significantly,
driven
by
greater
global
demand
and
sanctions
on
Russia,
one
of
the
world’s
largest
oil
producers.
The
personal
consumption
expenditures
index,
a
measure
of
inflation,
rose
dramatically
during
the
period,
representing
the
highest
12-month
increase
in
decades.
The
unemployment
rate
declined
from
4.7%
in
September
2021
to
3.6%
in
March
2022
as
job
openings
increased,
but
a
relative
lack
of
available
workers
fueled
wage
growth,
adding
to
some
investors’
inflation
concerns.
In
an
effort
to
control
inflation,
the
U.S.
Federal
Reserve
(Fed)
raised
the
federal
funds
target
rate
to
a
range
of
0.25%–0.50%,
the
first
such
increase
since
2018.
The
Fed
noted
in
its
March
2022
meeting
that
strength
in
the
U.S.
job
market
and
continued
inflationary
pressure,
exacerbated
by
the
war
in
Ukraine,
meant
it
anticipated
making
further
increases
to
the
federal
funds
target
rate.
Furthermore,
the
Fed
said
it
expected
to
begin
reducing
its
bond
holdings
at
a
future
meeting.
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
March
31,
2022.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
4
franklintempleton.com
Semiannual
Report
Franklin
DynaTech
Fund
This
semiannual
report
for
Franklin
DynaTech
Fund
covers
the
period
ended
March
31,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation
by
investing
primarily
in
equity
securities
of
companies
that
emphasize
innovation
and
new
technologies,
have
superior
management
and
that
benefit
from
new
industry
conditions
in
the
dynamically
changing
global
economy.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-16.80%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Russell
1000
®
Growth
Index,
which
is
market
capitalization
weighted
and
measures
performance
of
those
Russell
1000
®
Index
companies
with
relatively
higher
price-
to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
cumulative
total
return
of
+1.54%.
1
Also
for
comparison,
the
broad
U.S.
stock
market,
as
measured
by
the
Standard
&
Poor’s
500
Index
(S&P
500),
posted
a
+5.92%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
7
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Investment
Strategy
We
use
fundamental,
bottom-up
research
to
seek
companies
meeting
our
criteria
of
growth
potential,
quality
and
valuation.
In
seeking
sustainable
growth
characteristics,
we
look
for
companies
we
believe
can
produce
sustainable
earnings
and
cash
flow
growth,
evaluating
the
long-term
market
opportunity
and
competitive
structure
of
an
industry
to
target
leaders
and
emerging
leaders.
We
define
quality
companies
as
those
with
strong
and
improving
competitive
positions
in
attractive
markets.
We
also
believe
important
attributes
of
quality
are
experienced
and
talented
management
teams
as
well
as
financial
strength
reflected
in
the
capital
structure,
gross
and
operating
margins,
free
cash
flow
generation
and
returns
on
capital
employed.
Our
valuation
analysis
includes
a
range
of
potential
outcomes
based
on
an
assessment
of
multiple
scenarios.
In
assessing
value,
we
consider
whether
security
prices
fully
reflect
the
balance
of
the
sustainable
growth
opportunities
relative
to
business
and
financial
risks.
Manager’s
Discussion
During
the
six
months
under
review,
the
Fund’s
prolonged
stretch
of
gains
reversed
into
significant
and
widespread
losses,
with
most
of
the
selling
occurring
in
November
2021
through
February
2022
(while
October
2021
and
March
2022
were
up
months
for
the
Fund).
In
general,
many
investors
expressed
their
valuation
concerns
by
divesting
innovative
and
high-tech
companies
that
held
the
potential
to
disrupt
lots
of
businesses
in
the
future
but
offered
little
or
no
earnings
in
the
present.
The
Fund
was
broadly
undermined
by
an
investment
style
rotation
in
the
equity
market
as
U.S.
and
global
growth
stocks,
whose
valuations
were
negatively
impacted
by
rising
interest
rates,
declined
substantially
more
than
their
value-oriented
counterparts.
Portfolio
Composition
3/31/22
%
of
Total
Net
Assets
Software
25.1%
Semiconductors
&
Semiconductor
Equipment
14.1%
IT
Services
9.2%
Internet
&
Direct
Marketing
Retail
7.8%
Life
Sciences
Tools
&
Services
7.3%
Health
Care
Equipment
&
Supplies
6.8%
Interactive
Media
&
Services
6.3%
Automobiles
3.0%
Capital
Markets
2.9%
Pharmaceuticals
1.8%
Health
Care
Technology
1.7%
Electronic
Equipment,
Instruments
&
Components
1.6%
Technology
Hardware,
Storage
&
Peripherals
1.5%
Electric
Utilities
1.2%
Other
8.4%
Short-Term
Investments
&
Other
Net
Assets
1.3%
1.
Source:
Morningstar.
Frank
Russell
Company
is
the
source
and
owner
of
the
trademarks,
service
marks
and
copyrights
related
to
the
Russell
Indexes.
Russell
®
is
a
trademark
of
Frank
Russell
Company.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
43
.
Franklin
DynaTech
Fund
5
franklintempleton.com
Semiannual
Report
Despite
the
headwinds,
the
Fund
continued
to
focus
its
investments
within
innovation,
believing
that
this
is
one
way
to
potentially
outperform
the
market
over
the
long-
term.
Innovation
rarely
adopts
or
performs
linearly.
Instead,
innovation
is
often
spastic,
violent
and
filled
with
stories
of
tremendous
breakthroughs
as
well
as
failure,
in
our
view.
Platforms
can
move
forward
faster
than
we
expect
as
well
as
regress,
and
the
goal
in
owning
a
portfolio
of
innovative
companies
is
to
level
this
movement
out.
Throughout
the
period,
we
continued
to
believe
that
investing
in
the
merits
of
a
core
strategy
that
focuses
on
long-term
secular
growth
companies
with
compounding
revenue,
earnings
and
free
cash
flow—and
with
strong
and
sustainable
competitive
advantages
due
to
changes
in
the
economy
and
the
path
of
innovation
over
the
next
three-,
five-
and
10-year
periods—
remains
sound.
Eight
out
of
11
equity
sector
allocations
were
net
detractors
from
performance
in
absolute
terms,
including
double-digit
percentage
losses
for
three
of
our
largest
allocations:
information
technology
(IT),
communication
services
and
health
care;
when
combined,
these
holdings
comprised
a
significant
portion
of
the
overall
portfolio
at
the
beginning
of
the
period,
so
their
impact
on
overall
results
was
considerable.
Given
investors’
flight
from
growth-
oriented
equities,
the
Fund’s
broad-based
declines
among
entertainment
and
interactive
media
companies
in
the
communication
services
sector,
as
well
as
services
and
software
companies
in
the
IT
sector,
were
key
areas
of
weakness,
as
was
a
much
smaller
portion
of
the
portfolio
dedicated
to
life
sciences
tools
and
services
companies
in
the
health
care
sector.
Among
these
core
sector
allocations,
communication
services
posted
the
largest
overall
declines
by
far.
Within
the
group,
entertainment
industry
companies
such
as
Sea,
a
Singapore-based
consumer
internet
company
and
Roblox,
an
online
game
platform
and
metaverse-based
game
creator
were
standout
detractors.
Within
IT,
a
host
of
internet
commerce-enabling
and
payment
platform
companies
were
among
the
notable
detractors—including
Shopify,
PayPal
Holdings
(not
held
at
period-end),
Twilio,
Block
(formerly
Square,
not
held
at
period-end)
and
Adyen—though
nearly
all
of
our
positions
in
this
industry
suffered
double-digit
percentage
declines
as
they
collectively
shed
about
a
third
of
their
equity
value.
Among
software
developers,
absolute
returns
were
hindered
foremost
by
DocuSign,
an
e-signature
and
electronic
contract
management
company
(not
held
at
period-end),
HubSpot,
a
platform
for
inbound
marketing,
sales,
and
customer
service,
and
Intuit,
a
financial
and
tax
preparation
software
company.
Within
health
care,
the
Fund
was
invested
in
19
different
life
sciences
tools
and
services
industry
companies,
all
but
one
of
which
traded
lower
over
the
span
of
October
2021
to
March
2022.
The
largest
detractors
among
them
included
Repligen,
which
develops
materials
used
in
the
manufacture
of
biological
drugs,
and
China-based
contract
research
organization
Wuxi
Biologics
Cayman
(not
held
at
period-end).
All
but
one
of
our
positions
in
the
biotechnology
industry
also
came
under
substantial
selling
pressure,
none
more
so
than
Moderna,
a
biotechnology
company
that
develops
therapeutics
and
vaccines
(not
held
at
period-
end),
and
Natera,
a
diagnostic
company
that
develops
and
commercializes
molecular
testing
services
(not
held
at
period-end).
Most
of
the
Fund’s
remaining
assets
were
dedicated
to
consumer
discretionary
companies,
which
also
suffered
widespread
losses.
In
particular,
all
but
one
out
of
10
stocks
in
the
internet
retail
space
were
out
of
favor
including
top
detractor
MercadoLibre,
which
has
a
commanding
presence
in
Latin
American
e-commerce
and
fintech.
Elsewhere
in
the
portfolio,
our
much
smaller
exposures
to
financial
services,
industrials,
materials
and
consumer
staples
(allocation
eliminated
by
period-end)
also
sold
off.
Conversely,
the
declines
described
above
were
partially
offset
by
minimal
contributions
from
our
limited
holdings
in
the
utilities,
real
estate
and
energy
sectors
(comprising
a
very
small
portion
of
total
net
assets
at
period-end).
The
only
notable
contributor
within
this
group
was
NextEra
Energy
in
the
utilities
sector,
which
operates
as
the
world's
largest
Top
10
Holdings
3/31/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Amazon.com,
Inc.
6.8%
Internet
&
Direct
Marketing
Retail,
United
States
Microsoft
Corp.
5.2%
Software,
United
States
Alphabet,
Inc.
4.7%
Interactive
Media
&
Services,
United
States
NVIDIA
Corp.
4.6%
Semiconductors
&
Semiconductor
Equipment,
United
States
Tesla,
Inc.
3.0%
Automobiles,
United
States
ServiceNow
,
Inc.
2.6%
Software,
United
States
Thermo
Fisher
Scientific,
Inc.
2.5%
Life
Sciences
Tools
&
Services,
United
States
Danaher
Corp.
2.5%
Life
Sciences
Tools
&
Services,
United
States
Mastercard
,
Inc.
2.4%
IT
Services,
United
States
ASML
Holding
NV
2.1%
Semiconductors
&
Semiconductor
Equipment,
Netherlands
Franklin
DynaTech
Fund
6
franklintempleton.com
Semiannual
Report
generator
of
renewable
energy
from
the
wind
and
sun
and
a
world
leader
in
battery
storage.
All
of
the
Fund’s
other
key
contributors
were
individual
holdings
that
reduced
the
losses
within
sectors
that
were
net
detractors.
However,
it
was
a
relatively
short
list
with
a
combined
positive
impact
that
was
dwarfed
by
the
previously
noted
detractors.
They
tended
to
be
profitable
companies
that
were
dealing
with
robust
demand,
including
semiconductor
manufacturer’s
NVIDIA
and
GLOBALFOUNDRIES,
and
SiTime,
a
silicon
timing
systems
solution
developer,
and
large,
established
tech
giants
such
as
Microsoft,
Apple
and
Alphabet,
within
the
IT
sector.
Some
of
the
other
outliers
to
the
upside
included
electric
vehicle
maker
Tesla
within
the
automobiles
industry,
managed
healthcare
and
insurance
provider
UnitedHealth
Group,
within
health
care
providers
and
services,
Inspire
Medical
Systems,
a
developer
of
implantable
neurostimulation
systems
to
treat
obstructive
sleep
apnea
and
STERIS,
a
manufacturer
of
medical
and
surgical
equipment,
within
health
care
technology
specialists
and
equipment
makers,
and
select
software
makers
including
cybersecurity
company
Palo
Alto
Networks
and
Synopsys,
a
developer
of
software-
based
designing
solutions
for
the
semiconductor
industry.
Thank
you
for
your
continued
participation
in
Franklin
Dynatech
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Matthew
J.
Moberg,
CPA
Rupert
H.
Johnson,
Jr.
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
March
31,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
March
31,
2022
Franklin
DynaTech
Fund
7
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3
6-Month
-16.80%
-21.37%
1-Year
-4.27%
-9.53%
5-Year
+154.23%
+19.16%
10-Year
+361.05%
+15.86%
Advisor
6-Month
-16.69%
-16.69%
1-Year
-4.03%
-4.03%
5-Year
+157.44%
+20.82%
10-Year
+372.77%
+16.81%
See
page
8
for
Performance
Summary
footnotes.
Franklin
DynaTech
Fund
Performance
Summary
8
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Stocks
historically
have
outperformed
other
asset
classes
over
the
long
term,
but
tend
to
fluctuate
more
dramatically
over
the
short
term.
Investments
in
fast-growing
industries,
like
the
technology
and
health
care
sectors
(which
have
historically
been
volatile)
could
result
in
increased
price
fluctuation,
especially
over
the
short
term,
due
to
the
rapid
pace
of
product
change
and
development
and
changes
in
government
regulation
of
companies
emphasizing
scientific
or
technological
advancement
or
regulatory
approval
for
new
drugs
and
medical
instruments.
The
Fund
may
also
invest
in
small-
and
mid-capitalization
companies,
which
can
be
particularly
sensitive
to
changing
economic
conditions,
and
their
prospects
for
growth
are
less
certain
than
those
of
larger,
more
established
companies.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
4.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(10/1/21–3/31/22)
Share
Class
Long-Term
Capital
Gain
A
$2.2173
C
$2.2173
R
$2.2173
R6
$2.2173
Advisor
$2.2173
Total
Annual
Operating
Expenses
4
Share
Class
A
0.79%
Advisor
0.54%
Your
Fund’s
Expenses
Franklin
DynaTech
Fund
9
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
an
d
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/21
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$832.01
$3.53
$1,021.08
$3.89
0.77%
C
$1,000
$828.93
$6.94
$1,017.34
$7.66
1.52%
R
$1,000
$831.02
$4.67
$1,019.83
$5.15
1.02%
R6
$1,000
$833.41
$2.03
$1,022.71
$2.24
0.44%
Advisor
$1,000
$833.10
$2.38
$1,022.33
$2.63
0.52%
10
franklintempleton.com
Semiannual
Report
Franklin
Focused
Growth
Fund
This
semiannual
report
for
Franklin
Focused
Growth
Fund
covers
the
period
ended
March
31,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation
by
investing
in
an
equity
securities
portfolio
of
approximately
20–50
companies
that
we
believe
offers
a
compelling
trade-off
between
growth
opportunity,
business
and
financial
risk
and
valuation.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-13.51%
cumulative
total
return
for
the
six
months
under
review.
1
In
comparison,
the
Russell
1000
®
Growth
Index,
which
is
market
capitalization
weighted
and
measures
performance
of
those
Russell
1000
®
Index
companies
with
relatively
higher
price-
to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
cumulative
total
return
of
+1.54%.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
13
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Investment
Strategy
We
use
fundamental,
bottom-up
research
to
seek
companies
meeting
our
criteria
of
growth
potential,
quality
and
valuation.
In
seeking
sustainable
growth
characteristics,
we
look
for
companies
we
believe
can
produce
sustainable
earnings
and
cash
flow
growth,
evaluating
the
long-term
market
opportunity
and
competitive
structure
of
an
industry
to
target
leaders
and
emerging
leaders.
We
define
quality
companies
as
those
with
strong
and
improving
competitive
positions
in
attractive
markets.
We
also
believe
important
attributes
of
quality
are
experienced
and
talented
management
teams
as
well
as
financial
strength
reflected
in
the
capital
structure,
gross
and
operating
margins,
free
cash
flow
generation
and
returns
on
capital
employed.
Our
valuation
analysis
includes
a
range
of
potential
outcomes
based
on
an
assessment
of
multiple
scenarios.
In
assessing
value,
we
consider
whether
security
prices
fully
reflect
the
balance
of
the
sustainable
growth
opportunities
relative
to
business
and
financial
risks.
Manager’s
Discussion
During
the
six
months
under
review,
the
Fund’s
absolute
returns
were
hindered
by
a
sustained
and
widespread
equity
selloff
for
technology,
media
and
telecommunications
companies
foremost.
This
trend
was
felt
most
heavily
in
the
Fund’s
information
technology
(IT)
and
communication
services
sector
allocations,
which
comprised
well
over
half
of
the
portfolio’s
composition.
In
general,
many
investors
expressed
their
valuation
concerns
by
divesting
many
innovative
companies
that
held
the
potential
to
disrupt
lots
of
businesses
in
the
future
but
offered
little
or
no
earnings
in
the
present.
The
Fund
was
also
broadly
undermined
by
the
equity
market’s
investment-style
rotation
as
growth
stocks,
whose
valuations
were
negatively
impacted
by
rising
interest
rates,
declined
substantially
more
than
their
value-oriented
counterparts.
In
this
environment,
seven
out
of
11
equity
sector
allocations
were
net
detractors
from
performance
in
absolute
terms,
while
the
four
that
advanced,
consumer
staples,
utilities,
real
estate
and
energy
had
only
a
minor
positive
impact
on
overall
results
as
they
averaged
a
smaller
portion
of
total
net
assets.
Portfolio
Composition
3/31/22
%
of
Total
Net
Assets
Software
21.4%
Semiconductors
&
Semiconductor
Equipment
16.1%
Internet
&
Direct
Marketing
Retail
11.1%
IT
Services
8.4%
Health
Care
Equipment
&
Supplies
7.9%
Automobiles
6.0%
Interactive
Media
&
Services
5.7%
Life
Sciences
Tools
&
Services
5.1%
Food
&
Staples
Retailing
4.7%
Electric
Utilities
4.1%
Capital
Markets
2.3%
Equity
Real
Estate
Investment
Trusts
(REITs)
2.1%
Personal
Products
1.3%
Aerospace
&
Defense
1.1%
Other
4.2%
Short-Term
Investments
&
Other
Net
Assets
(1.5)%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
53
.
Franklin
Focused
Growth
Fund
11
franklintempleton.com
Semiannual
Report
More
than
half
of
the
Fund’s
overall
losses
occurred
in
the
IT
sector,
where
our
IT
services
and
software
holdings
suffered
steep,
double-digit
percentage
declines.
A
collection
of
e-commerce
business,
transaction,
and
payment
platform
companies
were
among
the
notable
detractors,
including
Shopify,
Adyen,
PayPal
Holdings
(not
held
at
period-end)
and
Block
(formerly
Square,
not
held
at
period-end),
and
they
collectively
shed
more
than
a
third
of
their
equity
value.
Among
software
developers,
absolute
results
were
hindered
mainly
by
HubSpot,
a
platform
for
inbound
marketing,
sales,
and
customer
service,
Procore
Technologies,
a
cloud-
based
construction
management
platform,
DocuSign,
an
e-signature
and
electronic
contract
management
company
(not
held
at
period-end),
and
Adobe,
a
specialized
software
for
content
creation
and
publication
company
(not
held
at
period-end).
Overall,
the
Fund
had
a
smaller
exposure
to
communication
services
companies.
However,
they
had
a
disproportionately
negative
impact
on
returns
and
posted
the
largest
overall
decline
of
any
sector
allocation.
Within
the
group,
entertainment
industry
companies
such
as
Sea
Limited,
a
Singapore-based
internet
company
and
Roblox,
an
online
game
platform
and
metaverse-based
game
creator
(not
held
at
period-end),
were
standout
detractors,
as
were
social
media
platforms
like
Meta
Platforms
(not
held
at
period-end)
and
Snap
(not
held
at
period-end).
To
a
lesser
extent,
the
Fund
also
experienced
widespread
losses
in
the
health
care
sector
as
all
but
one
of
our
related
holdings
traded
lower.
The
largest
detractors
among
them
included
China-based
contract
research
organization
Wuxi
Biologics
Cayman
(not
held
at
period-end)
and
Repligen,
which
develops
materials
used
in
the
manufacture
of
biological
drugs.
Our
positions
in
technology-focused
health
care
equipment
and
supplies
stocks
also
came
under
substantial
selling
pressure
as
Veeva
Systems,
an
R&D
cloud
platform
for
pharmaceutical
and
life
sciences
industry
applications,
IDEXX
Laboratories,
a
manufacturer
of
animal
health
products,
and
Intuitive
Surgical,
a
manufacturer
of
robotic
technologies
used
for
surgeries,
pulled
back
following
prolonged
rallies
in
2020
and
2021.
Elsewhere
in
the
portfolio,
weakness
was
evident
in
the
consumer
discretionary
sector
as
MercadoLibre,
which
has
a
commanding
presence
in
Latin
American
e-commerce
and
fintech,
and
electric
vehicle
manufacturer
Rivian
Automotive
(not
held
at
period-end)
sold
off
substantially.
Conversely,
the
declines
described
above
were
partially
offset
by
an
overall
gain
in
the
consumer
staples
sector
that
was
centered
on
a
big
rally
for
Costco
Wholesale,
a
membership-only
big
box
retailer.
Our
solitary
investment
in
the
utilities
sector,
NextEra
Energy,
which
operates
as
the
world's
largest
generator
of
renewable
energy
from
the
wind
and
sun
and
a
world
leader
in
battery
storage,
was
a
modest
contributor.
Individual
gains
in
the
real
estate
and
energy
sectors
came
from
SBA
Communications,
a
tech-focused
real
estate
investment
trust
and
global
oilfield
services
provider
Baker
Hughes.
All
of
the
Fund’s
other
key
contributors
were
individual
holdings
that
reduced
the
losses
within
sectors
that
were
net
detractors.
However,
it
was
a
relatively
short
list
with
a
combined
positive
impact
that
was
dwarfed
by
the
previously
noted
detractors.
They
tended
to
be
profitable
companies
that
were
dealing
with
robust
demand,
including
semiconductor
manufacturer’s
NVIDIA
and
Taiwan
Semiconductor
Manufacturing
(not
held
at
period-end),
and
large,
established
tech
giants
such
as
Microsoft
and
Alphabet.
Some
of
the
other
outliers
to
the
upside
included
electric
vehicle
maker
Tesla
within
the
automobiles
industry,
software
industry
standout
Synopsys,
a
developer
of
software
based
designing
solutions
for
the
semiconductor
industry,
Chinese
multinational
technology
and
entertainment
conglomerate
Tencent
Holdings
(not
held
at
period-end),
and
Amazon.com
in
the
internet
retail
industry.
Although
from
a
wider
perspective,
investors
have
embraced
Amazon
as
a
multinational
technology
company
focused
not
just
on
e-commerce
but
also
on
its
rapidly
expanding
business
in
cloud
computing,
digital
streaming
and
artificial
intelligence.
Notably,
we
eliminated
the
Fund’s
exposure
to
China-based
companies
over
the
span
of
October
2021
through
March
2022,
as
we
found
more
compelling
investment
opportunities
Top
10
Holdings
3/31/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Microsoft
Corp.
10.5%
Software,
United
States
Amazon.com,
Inc.
10.1%
Internet
&
Direct
Marketing
Retail,
United
States
NVIDIA
Corp.
8.1%
Semiconductors
&
Semiconductor
Equipment,
United
States
Tesla,
Inc.
6.0%
Automobiles,
United
States
Alphabet,
Inc.
5.7%
Interactive
Media
&
Services,
United
States
Costco
Wholesale
Corp.
4.7%
Food
&
Staples
Retailing,
United
States
NextEra
Energy,
Inc.
4.1%
Electric
Utilities,
United
States
Mastercard,
Inc.
4.0%
IT
Services,
United
States
Danaher
Corp.
3.9%
Life
Sciences
Tools
&
Services,
United
States
ASML
Holding
NV
3.9%
Semiconductors
&
Semiconductor
Equipment,
Netherlands
Franklin
Focused
Growth
Fund
12
franklintempleton.com
Semiannual
Report
that
were
not
tied
to
Beijing’s
increasingly
stringent
and
opaque
regulatory
regime.
Thank
you
for
your
participation
in
Franklin
Focused
Growth
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Matthew
J.
Moberg,
CPA
Portfolio
Manager
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
March
31,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
March
31,
2022
Franklin
Focused
Growth
Fund
13
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/22
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
6-Month
-13.51%
-18.26%
1-Year
0.00%
-5.50%
5-Year
+150.93%
+18.85%
Since
Inception
(4/13/16)
5
+192.42%
+12.79%
Advisor
6-Month
-13.38%
-13.38%
1-Year
+0.26%
+0.26%
5-Year
+154.17%
+20.51%
Since
Inception
(4/13
/16)
5
+196.91%
+20.02%
See
page
14
for
Performance
Summary
footnotes.
Franklin
Focused
Growth
Fund
Performance
Summary
14
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
To
the
extent
the
Fund
focuses
on
particular
countries,
regions,
industries,
sectors
or
types
of
investment
from
time
to
time,
it
may
be
subject
to
greater
risks
of
adverse
developments
in
such
areas
of
focus
than
a
fund
that
invests
in
a
wider
variety
of
countries,
regions,
industries,
sectors
or
investments.
Growth
stock
prices
reflect
projections
of
future
earnings
or
revenues,
and
can,
therefore,
fall
dramati-
cally
if
the
company
fails
to
meet
those
projections.
The
Fund
may
also
invest
in
small-
and
mid-capitalization
companies,
which
can
be
particularly
sensitive
to
changing
economic
conditions,
and
their
prospects
for
growth
are
less
certain
than
those
of
larger,
more
established
companies.
Foreign
investing
carries
additional
risks
such
as
currency
and
market
volatility,
and
political
or
social
instability;
risks
which
are
heightened
in
developing
countries.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
1/31/23.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
2/14/20,
the
Fund
began
offering
Class
A
shares.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
2/14/20,
a
restated
figure
is
used
based
on
the
Fund’s
Advisor
Class
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A
and
Advisor
Class;
and
(b)
for
periods
after
2/14/20,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Since
Inception
returns
are
based
on
the
performance
inception
date
of
4/13/16.
6.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(10/1/21–3/31/22)
Share
Class
Long-Term
Capital
Gain
A
$0.1756
C
$0.1756
R
$0.1756
R6
$0.1756
Advisor
$0.1756
Total
Annual
Operating
Expenses
6
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
1.10%
1.37%
Advisor
0.85%
1.12%
Your
Fund’s
Expenses
Franklin
Focused
Growth
Fund
15
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/21
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$864.90
$5.12
$1,019.44
$5.54
1.10%
C
$1,000
$862.00
$8.59
$1,015.70
$9.30
1.85%
R
$1,000
$863.90
$6.27
$1,018.20
$6.79
1.35%
R6
$1,000
$866.60
$3.39
$1,021.30
$3.67
0.73%
Advisor
$1,000
$866.20
$3.95
$1,020.70
$4.28
0.85%
16
franklintempleton.com
Semiannual
Report
Franklin
Growth
Fund
This
semiannual
report
for
Franklin
Growth
Fund
covers
the
period
ended
March
31,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation
by
investing
substantially
in
equity
securities
of
companies
that
are
leaders
in
their
industries.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-2.14%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Standard
&
Poor’s
500
Index
(S&P
500),
which
is
a
broad
measure
of
U.S.
stock
performance,
posted
a
+5.92%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
18
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Investment
Strategy
We
use
fundamental,
bottom-up
research
to
seek
companies
meeting
our
criteria
of
growth
potential,
quality
and
valuation.
In
seeking
sustainable
growth
characteristics,
we
look
for
companies
we
believe
can
produce
sustainable
earnings
and
cash
flow
growth,
evaluating
the
long-term
market
opportunity
and
competitive
structure
of
an
industry
to
target
leaders
and
emerging
leaders.
We
define
quality
companies
as
those
with
strong
and
improving
competitive
positions
in
attractive
markets.
We
also
believe
important
attributes
of
quality
are
experienced
and
talented
management
teams
as
well
as
financial
strength
reflected
in
the
capital
structure,
gross
and
operating
margins,
free
cash
flow
generation
and
returns
on
capital
employed.
Our
valuation
analysis
includes
a
range
of
potential
outcomes
based
on
an
assessment
of
multiple
scenarios.
In
assessing
value,
we
consider
whether
security
prices
fully
reflect
the
balance
of
the
sustainable
growth
opportunities
relative
to
business
and
financial
risks.
The
investment
manager’s
process
generally
includes
an
assessment
of
the
potential
impacts
of
any
material
environmental,
social
and
governance
(“ESG”)
factors
on
the
long-term
risk
and
return
profile
of
a
company.
*Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
the
report.
Manager’s
Discussion
For
the
six
months
under
review,
the
Fund’s
returns
lagged
those
of
the
benchmark.
The
bulk
of
relative
weakness
was
stock
specific,
with
most
of
the
pressure
coming
from
holdings
in
the
information
technology
(IT)
and
health
care
sectors.
Technology
companies
faced
headwinds
over
the
period
that
included
rising
bond
yields,
COVID-19
variants,
rotation
into
more
cyclical
corners
of
the
market
and
profit-taking
following
tech’s
multi-year
gains.
Weakness
in
the
IT
sector
came
from
a
position
in
cloud
communications
platform
company
Twilio,
which
saw
a
modest
pullback
in
its
equity
value
but
is
still
one
of
the
world’s
top
growth
stocks
of
the
past
five
years.
Twilio
processes
text
messages,
calls,
videos,
and
other
content
for
mobile
and
we
regard
it
as
a
high-quality
company
and
key
player
in
the
digital
transformation
of
businesses.
In
the
software
industry,
cloud
company
ServiceNow
underperformed
and
negatively
Portfolio
Composition
3/31/22
%
of
Total
Net
Assets
Software
17.0%
Semiconductors
&
Semiconductor
Equipment
7.3%
Life
Sciences
Tools
&
Services
6.2%
IT
Services
5.9%
Technology
Hardware,
Storage
&
Peripherals
4.9%
Health
Care
Equipment
&
Supplies
4.8%
Interactive
Media
&
Services
4.5%
Internet
&
Direct
Marketing
Retail
4.5%
Capital
Markets
4.4%
Aerospace
&
Defense
4.3%
Pharmaceuticals
4.1%
Machinery
3.8%
Road
&
Rail
3.7%
Electronic
Equipment,
Instruments
&
Components
3.0%
Other*
21.4%
Short-Term
Investments
&
Other
Net
Assets
0.2%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
60
.
Franklin
Growth
Fund
17
franklintempleton.com
Semiannual
Report
impacted
results.
Overall,
we
have
large
exposure
to
the
industry
where
we
see
accelerated
growth
trends
in
cloud
computing
services.
Conversely,
select
semiconductor
stocks
rallied
during
the
period
including
NVIDIA.
Once
mostly
a
graphics
chip
company,
NVIDIA
now
participates
in
nearly
every
disruptive
tech
trend—cloud
computing,
cryptocurrency
mining,
artificial
intelligence,
autonomous
cars,
and
even
the
metaverse.
Chipmakers
in
general
have
been
benefiting
from
an
ongoing
favorable
demand
environment.
In
the
health
care
sector,
a
selloff
in
Chinese
biotech
stocks
followed
reports
of
possible
U.S.
sanctions
against
some
companies
in
the
industry
and
had
a
negative
impact
on
Hong
Kong-based
Wuxi
Biologics
Cayman,
which
we
exited
over
the
period.
In
the
consumer
discretionary
sector,
our
underweight
in
Tesla
detracted
from
relative
returns,
though
contributed
to
absolute
performance.
The
shares
of
the
electric
carmaker
reached
record
highs
as
vehicle
deliveries
surged.
In
contrast,
the
Fund
benefited
most
from
stock
selection
and
an
underweighting
in
the
communication
services
sector,
where
an
underweight
position
in
technology
conglomerate
Meta
Platforms
(formerly
Facebook)
helped
relative
returns.
The
company
faced
heightened
scrutiny
from
regulators
for
failing
to
properly
address
misinformation
and
other
troubling
behavior
on
its
sites.
Meta
also
blamed
the
ongoing
headwinds
from
platform
changes
at
Apple
(also
a
Fund
holding)
as
well
as
the
impact
of
supply
chain
and
inflationary
pressures
on
advertising
dollars
and
decreased
user
engagement
due
to
competition.
Our
lower
exposure
than
the
benchmark
to
Meta
helped
mitigate
the
relative
impact
of
the
stock’s
substantial
decline.
Elsewhere,
stock
selection
in
the
industrials
sector
delivered
two
of
the
top
five
relative
contributors
during
the
period,
Union
Pacific
and
Northrop
Grumman.
Railroad
operator
Union
Pacific
performed
better
than
most
of
its
peers,
helped
by
strong
pricing
and
cargo
yields,
while
Northrop
Grumman
started
seeing
a
recovery
in
the
aerospace
market.
Thank
you
for
your
continued
participation
in
Franklin
Growth
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Serena
Perin
Vinton,
CFA
Robert
Rendler,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
March
31,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
3/31/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Microsoft
Corp.
5.1%
Software,
United
States
Apple,
Inc.
4.9%
Technology
Hardware,
Storage
&
Peripherals,
United
States
Amazon.com,
Inc.
4.5%
Internet
&
Direct
Marketing
Retail,
United
States
Alphabet,
Inc.
4.2%
Interactive
Media
&
Services,
United
States
NVIDIA
Corp.
2.8%
Semiconductors
&
Semiconductor
Equipment,
United
States
Union
Pacific
Corp.
2.4%
Road
&
Rail,
United
States
ServiceNow
,
Inc.
2.2%
Software,
United
States
Intuit,
Inc.
2.0%
Software,
United
States
Mastercard
,
Inc.
2.0%
IT
Services,
United
States
Northrop
Grumman
Corp.
1.8%
Aerospace
&
Defense,
United
States
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
March
31,
2022
Franklin
Growth
Fund
18
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3
6-Month
-2.14%
-7.52%
1-Year
+7.55%
+1.64%
5-Year
+114.31%
+15.16%
10-Year
+283.44%
+13.74%
Advisor
6-Month
-2.02%
-2.02%
1-Year
+7.82%
+7.82%
5-Year
+117.03%
+16.76%
10-Year
+293.16%
+14.67%
See
page
19
for
Performance
Summary
footnotes.
Franklin
Growth
Fund
Performance
Summary
19
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
market
values
of
securities
or
other
investments
owned
by
the
Fund
will
go
up
or
down,
sometimes
rapidly
or
unpredictably.
The
Fund
may
focus
on
particular
sectors
of
the
market
from
time
to
time,
which
can
carry
greater
risks
of
adverse
developments
in
such
sectors.
While
the
Fund
historically
has
focused
on
larger
companies,
it
may
invest
up
to
25%
of
its
assets
in
small,
relatively
new
and/
or
unseasoned
companies,
which
involves
additional
risks,
as
these
companies
may
have
less
certain
growth
prospects
and
limited
or
less
developed
product
lines
or
markets,
and
less
secure
financing.
Growth
stock
prices
can
be
volatile,
particularly
over
the
short
term.
The
Fund
may
invest
up
to
40%
of
its
net
assets
in
stocks
of
foreign
companies,
which
involve
special
risks,
including
currency
fluctuations
and
economic
as
well
as
political
uncertainty.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
4.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(10/1/21–3/31/22)
Share
Class
Net
Investment
Income
Short-Term
Capital
Gain
Long-Term
Capital
Gain
Total
A
–
$0.0588
$13.7618
$13.8206
C
–
$0.0588
$13.7618
$13.8206
R
–
$0.0588
$13.7618
$13.8206
R6
$0.0984
$0.0588
$13.7618
$13.9190
Advisor
–
$0.0588
$13.7618
$13.8206
Total
Annual
Operating
Expenses
4
Share
Class
A
0.79%
Advisor
0.54%
Your
Fund’s
Expenses
Franklin
Growth
Fund
20
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/21
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$978.62
$3.87
$1,021.02
$3.95
0.78%
C
$1,000
$974.90
$7.55
$1,017.28
$7.71
1.53%
R
$1,000
$977.49
$5.09
$1,019.78
$5.20
1.03%
R6
$1,000
$980.20
$2.26
$1,022.65
$2.31
0.46%
Advisor
$1,000
$979.83
$2.63
$1,022.27
$2.69
0.53%
21
franklintempleton.com
Semiannual
Report
Franklin
Income
Fund
This
semiannual
report
for
Franklin
Income
Fund
covers
the
period
ended
March
31,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
maximize
income,
while
maintaining
prospects
for
capital
appreciation
by
investing,
under
normal
market
conditions,
in
a
diversified
portfolio
of
debt
and
equity
securities.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
cumulative
total
return
of
+6.54%
for
the
six
months
under
review.
In
comparison,
the
Fund’s
equity
benchmark,
the
Standard
&
Poor’s
500
Index
(S&P
500),
which
is
a
broad
measure
of
U.S.
stock
performance,
posted
a
+5.92%
cumulative
total
return.
1
The
Fund’s
secondary
benchmark,
the
blended
50%
MSCI
USA
High
Dividend
Yield
Index
+
25%
Bloomberg
High
Yield
Very
Liquid
Index
+
25%
Bloomberg
U.S.
Aggregate
Bond
Index
(Blended
Benchmark),
which
is
a
combination
of
leading
stock
and
bond
indexes,
posted
a
+1.57%
cumulative
total
return.
2
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
24
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Investment
Strategy
In
analyzing
debt
and
equity
securities,
we
consider
such
factors
as
a
company’s
experience
and
managerial
strength;
responsiveness
to
changes
in
interest
rates
and
business
conditions;
debt
maturity
schedules
and
borrowing
requirements;
changing
financial
condition
and
market
recognition
of
the
change;
and
a
security’s
relative
value
based
on
such
factors
as
anticipated
cash
flow,
interest
or
dividend
coverage,
asset
coverage
and
earnings.
When
choosing
investments
for
the
Fund,
we
apply
a
bottom-up,
value
oriented,
long-term
approach,
focusing
on
the
market
price
of
a
company’s
securities
relative
to
the
investment
manager’s
evaluation
of
the
company’s
long-term
earning,
asset
value
and
cash
flow
potential.
Manager’s
Discussion
During
the
period
under
review,
our
equity
weighting
decreased
from
64.6%
to
57.7%,
and
our
fixed
income
weighting
increased
from
30.1%
to
39.9%.
The
Fund’s
cash
position
decreased
from
5.3%
to
2.4%
of
total
net
assets.
The
Fund
generated
positive
returns
during
the
period
with
strong
performance
across
equity
holdings
and
more
muted
performance
from
fixed
income
in
the
face
of
rising
government
bond
yields.
The
Fund
started
the
period
with
an
overweight
exposure
to
the
equity
market,
which
helped
drive
strong
returns,
while
lower
exposure
to
interest-rate
sensitive
fixed
income
securities
led
to
strong
performance
from
the
Fund
relative
to
its
blended
benchmark.
The
Fund
reduced
its
overweighting
in
equity
during
the
period
under
review.
Dividend
stocks,
particularly
value-oriented
sectors,
outperformed
growth-oriented
sectors
during
the
period
under
review.
The
equity
component
of
the
Fund’s
blended
benchmark
increased
with
the
MSCI
USA
High
Dividend
Yield
Index
posting
positive
returns
for
the
six-month
period.
The
Fund’s
equity
positions
outperformed
the
Fund’s
blended
benchmark.
After
strong
performance
through
the
end
of
the
calendar
year,
corporate
credit
spreads
widened
materially
during
the
second
half
of
the
period
under
review
as
inflationary
concerns,
central
bank
tightening
expectations,
and
geopolitical
risks
weighed
on
risk
markets.
In
addition
to
widening
credit
spreads,
interest
rates
broadly
increased,
which
weighed
on
the
more
duration
sensitive
portions
of
the
Fund’s
benchmark.
Fixed
income
returns
for
the
Fund
outperformed
the
Fund’s
blended
benchmark.
The
Bloomberg
U.S.
Aggregate
Bond
Index
posted
negative
returns,
while
the
Bloomberg
U.S.
High
Yield
Very
Liquid
Index
also
posted
negative
returns
at
period-end.
The
Fund
entered
the
period
with
an
increased
equity
weighting
and
a
decreased
fixed
income
weighting,
while
also
holding
a
portion
in
cash
equivalents,
with
the
Fund
having
already
started
to
reduce
its
peak
equity
allocation
earlier
in
2021.
This
transition
to
a
less
equity-tilted
portfolio
continued
over
the
period
under
review
with
a
decreased
equity
weighting
and
an
increased
fixed
income
weighting,
while
continuing
to
hold
a
portion
in
cash
equivalents
at
period-end.
1.
Source:
Morningstar.
2.
Source:
Factset.
The
Fund’s
Blended
Benchmark
was
calculated
internally.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
72
.
Franklin
Income
Fund
22
franklintempleton.com
Semiannual
Report
*Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
the
report.
Fixed
Income
holdings
posted
negative
returns
during
the
period
but
outperformed
relative
to
the
Fund’s
blended
fixed
income
benchmark.
As
an
asset
class,
fixed
income
underperformed
the
equity
asset
class,
which
benefited
the
Fund
given
its
overweight
allocation
to
equities
relative
to
the
Fund’s
blended
benchmark.
The
Fund’s
duration
positioning
at
the
front
end
of
the
yield
curve
in
the
face
of
rising
interest-rates
was
a
key
source
in
driving
the
outperformance
relative
to
the
Fund’s
benchmark.
Additionally,
while
corporate
credit
spreads
widened
during
the
period
under
review,
the
Fund
had
an
underweight
position
to
corporate
credit
at
the
start
of
the
period,
which
contributed
to
the
outperformance
relative
to
the
Fund’s
benchmark
as
well.
The
Fund
took
advantage
of
the
rate
and
spread-driven
selloff
in
credit
to
increase
our
exposure
to
the
asset
class
during
the
period
under
review,
particularly
within
the
Fund’s
allocation
to
high-yield
corporate
credit.
With
the
exception
of
positive
performance
from
the
energy
sector,
all
fixed
income
sectors
were
negative
contributors
with
U.S
Treasuries,
health
care,
and
communication
services
generating
the
largest
absolute
losses
at
the
Fund
level.
Notably,
our
underweight
allocation
to
fixed
income
and
strong
security
selection
led
to
every
sector
being
a
positive
contributor
to
performance
relative
to
the
Fund’s
blended
fixed
income
benchmark,
with
communication
services
and
financials
being
the
largest
corporate
credit
contributors.
Our
holdings
in
U.S.
Treasuries
and
agency
mortgage-backed
securities
(MBS)
were
absolute
detractors
during
the
period.
However,
these
positions
were
shorter
in
duration
and
much
smaller
in
size
relative
to
the
benchmark,
which
resulted
in
these
sectors
being
positive
contributors
relative
to
the
Fund’s
blended
benchmark.
*Includes
senior
floating
rate
interests
and
index-linked
notes.
Within
energy,
the
largest
contributor
to
performance
was
high-yield
oilfield
service
company
Weatherford
International
followed
by
bonds
of
refining
peers
PBF
Holding
and
Calumet
Specialty
Products.
Strong
commodity
price
performance,
increased
demand
outlook,
as
well
as
strong
business
performance
led
to
the
gains.
Other
notable
outperformers
included
bonds
of
BWAY
Holdings
as
bonds
performed
well
relative
to
the
broader
market
on
speculation
of
an
upcoming
M&A
transaction.
The
company
was
acquired
in
the
fall
of
2022
and
is
now
part
of
Mauser
Packaging
Solutions
(also
a
Fund
holding).
The
other
notable
detractors
were
Diamond
Sports,
a
subsidiary
of
Sinclair
Broadcast
Group
(not
a
Fund
holding)
as
the
company
dealt
with
renewing
carriage
contracts
in
their
regional
sports
broadcasting
business.
Additional
detractors
were
high-yield
pharmaceutical
peers
Endo
and
Bausch
Health
Companies.
Equity
holdings
increased
over
the
period.
As
an
asset-class,
equities
outperformed
fixed
income
during
the
period.
The
Fund
actively
trimmed
its
equity
overweighting
during
the
period
under
review.
All
sectors
were
positive
absolute
contributors
to
Fund
performance
during
the
period
except
for
financials.
Portfolio
Composition
3/31/22
%
of
Total
Net
Assets
Diversified
Financial
Services
9.4%
Pharmaceuticals
9.3%
Banks
8.0%
Electric
Utilities
7.4%
Health
Care
Providers
&
Services
7.2%
Oil,
Gas
&
Consumable
Fuels
6.0%
Semiconductors
&
Semiconductor
Equipment
4.8%
Multi-Utilities
3.5%
Media
3.5%
Diversified
Telecommunication
Services
3.1%
Biotechnology
2.5%
Metals
&
Mining
2.3%
Chemicals
1.7%
Capital
Markets
1.7%
Other*
27.2%
Short-Term
Investments
&
Other
Net
Assets
2.4%
Top
Five
Fixed
Income
Holdings
*
3/31/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
U.S.
Treasury
Notes
8.9%
Diversified
Financial
Services
,
United
States
CHS/Community
Health
Systems,
Inc.
4.2%
Health
Care
Providers
&
Services
,
United
States
Bausch
Health
Cos.,
Inc.
1.4%
Pharmaceuticals
,
United
States
DISH
DBS
Corp.
1.4%
Media
,
United
States
Tenet
Healthcare
Corp.
1.3%
Health
Care
Providers
&
Services
,
United
States
Franklin
Income
Fund
23
franklintempleton.com
Semiannual
Report
*Includes
convertible
bonds.
Energy,
health
care,
and
utility
holdings
were
the
largest
positive
contributors
relative
to
the
Fund’s
benchmark
during
the
period.
Consumer
staples
and
industrial
holdings
provided
notable
positive
contributions
as
well.
All
the
Fund’s
common
equity
positions
in
the
energy
and
utilities
sectors
were
positive
contributors
during
the
period.
Energy
was
led
by
strong
returns
from
Chevron
and
Exxon
Mobil,
while
utility
returns
were
led
by
Sempra
Energy,
Southern
Company,
and
American
Electric
Power.
Top
performers
in
the
Fund
outside
of
energy
and
utilities
included
pharmaceutical
peers
AbbVie
and
Pfizer,
as
well
as
aerospace
and
defense
player
Lockheed
Martin.
Despite
positive
absolute
contributions,
equity
holdings
in
the
consumer
staples
and
information
technology
sectors
were
modest
detractors
during
the
period
relative
to
the
Fund’s
benchmark.
At
the
individual
security
level,
the
most
notable
detractor
from
performance
over
the
period
came
from
the
equity
holdings
of
financial
peers
JPMorgan
Chase,
Citigroup,
and
Barclays.
Outside
of
these
financial
holdings,
material
peers
BASF
and
International
Paper
were
modest
detractors.
During
the
period,
the
Fund
used
derivatives
such
as
equity
call
and
put
options
to
sell
and
reduce
positions
(call
options)
and/or
to
initiate
and
add
to
positions,
which
generated
gains
during
the
period
under
review.
Thank
you
for
your
continued
participation
in
Franklin
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Edward
D.
Perks,
CFA
Lead
Portfolio
Manager
Brendan
Circle,
CFA
Todd
Brighton,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
March
31,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
Five
Equity
Holdings
*
3/31/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Chevron
Corp.
1.7%
Oil,
Gas
&
Consumable
Fuels
,
United
States
Southern
Co.
(The)
1.7%
Electric
Utilities
,
United
States
Verizon
Communications,
Inc.
1.5%
Diversified
Telecommunication
Services
,
United
States
Dominion
Energy,
Inc.
1.4%
Multi-Utilities
,
United
States
American
Electric
Power
Co.,
Inc.
1.3%
Electric
Utilities
,
United
States
Performance
Summary
as
of
March
31,
2022
Franklin
Income
Fund
24
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/22
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4,5
6-Month
+6.54%
+2.55%
1-Year
+10.23%
+6.09%
5-Year
+40.46%
+6.22%
10-Year
+99.62%
+6.75%
Advisor
6-Month
+6.32%
+6.32%
1-Year
+10.61%
+10.61%
5-Year
+42.27%
+7.31%
10-Year
+104.31%
+7.41%
30-Day
Standardized
Yield
7
Share
Class
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
A
4.44%
2.64%
2.63%
Advisor
4.94%
2.99%
2.99%
See
page
26
for
Performance
Summary
footnotes.
Franklin
Income
Fund
Performance
Summary
25
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
Fund’s
portfolio
includes
a
substantial
portion
of
higher-yielding,
lower-rated
corporate
bonds
and
some
floating
rate
loans,
which
are
also
higher-yielding
and
lower-rated.
These
investments
have
more
credit
risk
than
investment-grade
securities
and
are
subject
to
increased
risk
of
default
and
potential
loss
of
principal.
The
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
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.
Stock
prices
fluctuate,
sometimes
rapidly
and
dramat-
ically,
due
to
factors
affecting
individual
companies,
particular
industries
or
sectors,
or
general
market
conditions.
Foreign
investing
involves
additional
risks
such
as
currency
and
market
volatility,
as
well
as
political
and
social
instability.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
growth.
These
and
any
related
events
could
significantly
impact
the
fund’s
performance
and
the
value
of
an
investment
in
the
fund,
even
beyond
any
direct
exposure
the
fund
may
have
to
Russian
issuers
or
issuers
in
other
countries
affected
by
the
invasion.
1.
The
Fund
has
a
fee
waiver
associated
with
any
investment
it
makes
in
a
Franklin
Templeton
money
fund
and/or
other
Franklin
Templeton
fund,
contractually
guaranteed
through
1/31/23.
Fund
investment
results
reflect
the
fee
waiver;
without
this
waiver,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
March
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
3/31/22.
Net
Asset
Value
Share
Class
(Symbol)
3/31/22
9/30/21
Change
A
(FKIQX)
$2.52
$2.47
+$0.05
A1
(FKINX)
$2.53
$2.48
+$0.05
C
(FCISX)
$2.57
$2.52
+$0.05
R
(FISRX)
$2.47
$2.43
+$0.04
R6
(FNCFX)
$2.51
$2.47
+$0.04
Advisor
(FRIAX)
$2.50
$2.46
+$0.04
Distributions
(10/1/21–3/31/22)
Share
Class
Net
Investment
Income
Short-Term
Capital
Gain
Long-Term
Capital
Gain
Total
A
$0.0547
$0.0156
$0.0364
$0.1067
A1
$0.0565
$0.0156
$0.0364
$0.1085
C
$0.0499
$0.0156
$0.0364
$0.1019
R
$0.0517
$0.0156
$0.0364
$0.1037
R6
$0.0589
$0.0156
$0.0364
$0.1109
Advisor
$0.0583
$0.0156
$0.0364
$0.1103
Total
Annual
Operating
Expenses
8
Share
Class
Without
Fee
Waiver
A
0.72%
Advisor
0.47%
Franklin
Income
Fund
Performance
Summary
26
franklintempleton.com
Semiannual
Report
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Your
Fund’s
Expenses
FRANKLIN
INCOME
FUND
27
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/21
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,065.40
$3.66
$1,021.38
$3.59
0.71%
A1
$1,000
$1,066.00
$3.15
$1,021.88
$3.08
0.61%
C
$1,000
$1,062.10
$5.71
$1,019.39
$5.59
1.11%
R
$1,000
$1,061.10
$4.94
$1,020.14
$4.84
0.96%
R6
$1,000
$1,063.00
$2.12
$1,022.88
$2.07
0.41%
Advisor
$1,000
$1,063.20
$2.37
$1,022.63
$2.33
0.46%
28
franklintempleton.com
Semiannual
Report
Franklin
U.S.
Government
Securities
Fund
This
semiannual
report
for
Franklin
U.S.
Government
Securities
Fund
covers
the
period
ended
March
31,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
income
by
investing
at
least
80%
of
its
net
assets
in
U.S.
government
securities.
The
Fund
presently
invests
substantially
all
of
its
assets
in
Government
National
Mortgage
Association
obligations
(Ginnie
Maes).
Since
1983,
the
Fund
has
invested
substantially
in
Ginnie
Mae
securities,
which
carry
a
guarantee
backed
by
the
full
faith
and
credit
of
the
U.S.
government
as
to
the
timely
payment
of
interest
and
principal.
1
Issued
by
the
Government
National
Mortgage
Association
(GNMA),
Ginnie
Maes
have
been
among
the
highest
yielding
U.S.
government
obligations
available.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-4.70%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Bloomberg
U.S.
Government
-
Intermediate
Index,
the
intermediate
component
of
the
Bloomberg
U.S.
Government
Index,
posted
a
-4.75%
cumulative
total
return.
2
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
30
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Investment
Strategy
We
currently
invest
the
Fund’s
assets
substantially
in
GNMA
obligations.
We
analyze
securities
using
proprietary
models
to
help
us
identify
attractive
investment
opportunities.
Manager’s
Discussion
During
the
first
half
of
the
reporting
period,
against
the
backdrop
of
surging
COVID-19
Omicron
variant
infections,
the
U.S.
Federal
Reserve
(Fed)
accelerated
the
timeline
of
asset
purchase
tapering
and
upwardly
revised
its
median
projection
of
interest
rate
hikes
in
2022,
while
the
U.S.
Treasury
(UST)
yield
curve
flattened.
The
yield
curve
inverted
during
the
second
half
of
the
period
as
a
result
of
the
Russian-Ukraine
war,
heightened
geopolitical
tensions
and
persistent
inflationary
pressures
that
increased
expectations
for
a
more
aggressive
Fed.
As
widely
expected,
the
Fed
lifted
the
federal
funds
target
rate
by
25
basis
points
at
their
March
2022
meeting
and
signaled
six
more
hikes
ahead
this
year
and
four
more
beyond
that.
Fed
Chair
Jerome
Powell’s
urgency
on
beginning
balance
sheet
normalization
suggests
that
the
runoff
could
begin
by
mid-May
2022.
The
maximum
run-off
rate
will
likely
be
phased
in
by
the
middle
of
the
third
quarter
2022,
earlier
than
previously
expected.
Volatility,
as
measured
by
the
Merrill
Lynch
Option
Volatility
Estimate
Index,
also
spiked
during
the
period.
Despite
rising
mortgage
interest-rates,
demand
in
the
U.S.
housing
market
continued
to
outstrip
supply,
leading
to
ever
increasing
home
price
appreciation.
The
Primary
Mortgage
Market
Survey
rates
moved
back
to
pre-COVID-19
levels,
leaving
only
a
very
small
amount
of
the
universe
with
an
economic
incentive
to
refinance,
in
our
view,
compared
to
a
much
larger
portion
in
2020,
and
even
at
the
beginning
of
2022.
We
believe
that
as
rates
are
expected
to
rise
further,
this
will
contribute
to
declining
prepayment
levels.
The
Fund
maintains
a
conservative,
disciplined
investment
strategy
and
invests
primarily
in
GNMA
mortgage
pass-
throughs,
which
remain
the
only
MBS
that
are
backed
by
the
full
faith
and
credit
of
the
U.S.
government—the
same
Portfolio
Composition
3/31/22
%
of
Total
Net
Assets
Mortgage-Backed
Securities
97.3%
Other
0.5%
Short-Term
Investments
&
Other
Net
Assets
2.2%
1.
Securities
owned
by
the
Fund,
but
not
shares
of
the
Fund,
are
guaranteed
by
the
U.S.
government,
its
agencies
or
instrumentalities
as
to
the
timely
payment
of
principal
and
interest.
The
Fund’s
yield
and
share
price
are
not
guaranteed
and
will
vary
with
market
conditions.
2.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
97
.
Franklin
U.S.
Government
Securities
Fund
29
franklintempleton.com
Semiannual
Report
guarantee
applicable
to
U.S.
Treasuries.
1
We
believe
our
collateral-intensive
research
approach
can
allow
us
to
uncover
dislocations
across
the
GNMA
markets
and
associated
mispricing
of
prepayment
risk.
We
continue
to
focus
on
specified
pools
where
we
believe
our
experience
and
continual
investment
in
new
technologies
help
us
uncover
these
discrepancies.
Total
return
performance
was
negative
across
agency
MBS
sectors
during
the
reporting
period.
GMNA
MBS
was
the
best
performer
on
a
relative
basis,
followed
by
Fannie
Mae
MBS
and
Freddie
Mac
MBS.
Across
the
GNMA
coupon
stack,
4.5%
coupons
were
the
best
performers,
while
3.0%
coupons
lagged.
During
the
period,
the
portfolio
retained
a
higher
weighting
to
GNMA
IIs
(pools
of
mortgages
from
multiple
issuers)
than
GNMA
Is
(pools
of
mortgages
from
single
issuers).
Over
the
period,
we
added
to
GNMA
II
2.5%
coupons,
while
reducing
exposure
to
GNMA
II
3.5%
coupons.
The
portfolio’s
largest
absolute
allocations
were
in
3.0%
and
2.5%
coupons
at
period-end
and
relative
to
the
Bloomberg
GNMA
Index
the
portfolio
was
underweight
the
2.0%
and
2.5%
coupons
and
overweight
the
3.0%
coupon
and
4.5%
through
6.0%
coupons.
The
Fund’s
underweight
allocation
to
GNMA
II
2.0%
coupons
was
the
largest
contributor
to
performance.
In
addition,
an
overweight
allocation
to
coupons
GNMA
II
2.5%
and
4.0%,
and
an
underweight
allocation
to
GNMA
I
3.0%
also
contributed.
Security
selection
in
GNMA
II
2.0%
through
3.0%,
as
well
as
4.0%
and
5.0%
coupons
benefited
performance.
Overweight
allocation
to
GNMA
II
3.0%
coupons
was
the
largest
detractor
from
performance.
Thank
you
for
your
continued
participation
in
Franklin
U.S.
Government
Securities
Fund.
We
welcome
your
comments
and
questions
and
look
forward
to
serving
your
investment
needs
in
the
years
ahead.
Paul
Varunok
Neil
Dhruv
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
March
31,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
March
31,
2022
Franklin
U.S.
Government
Securities
Fund
30
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/22
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4,5
6-Month
-4.70%
-8.27%
1-Year
-5.26%
-8.81%
5-Year
+3.12%
-0.15%
10-Year
+8.97%
+0.48%
Advisor
6-Month
-4.73%
-4.73%
1-Year
-5.01%
-5.01%
5-Year
+4.01%
+0.79%
10-Year
+10.92%
+1.04%
30-Day
Standardized
Yield
7
Share
Class
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
A
2.27%
1.44%
1.43%
Advisor
2.61%
1.74%
1.74%
See
page
31
for
Performance
Summary
footnotes.
Franklin
U.S.
Government
Securities
Fund
Performance
Summary
31
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
loss
of
principal.
The
Fund’s
share
price
and
yield
will
be
affected
by
interest
rate
movements
and
mortgage
prepayments.
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.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
imposed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberat-
tacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
a
fee
waiver
associated
with
any
investment
it
makes
in
a
Franklin
Templeton
money
fund
and/or
other
Franklin
Templeton
fund,
contractually
guaranteed
through
1/31/23.
Fund
investment
results
reflect
the
fee
waiver;
without
this
waiver,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
March
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
3/31/22.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(10/1/21–3/31/22)
Share
Class
Net
Investment
Income
A
$0.0651
A1
$0.0681
C
$0.0533
R
$0.0579
R6
$0.0755
Advisor
$0.0722
Total
Annual
Operating
Expenses
8
Share
Class
Without
Fee
Waiver
A
0.87%
Advisor
0.62%
Your
Fund’s
Expenses
Franklin
U.S.
Government
Securities
Fund
32
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration):
Divide
your
account
value
by
$1,000
(if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/21
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$953.00
$4.22
$1,020.61
$4.36
0.87%
A1
$1,000
$951.90
$3.70
$1,021.14
$3.83
0.76%
C
$1,000
$950.70
$6.16
$1,018.62
$6.37
1.27%
R
$1,000
$951.80
$5.43
$1,019.37
$5.62
1.12%
R6
$1,000
$955.00
$2.48
$1,022.40
$2.56
0.51%
Advisor
$1,000
$952.70
$3.00
$1,021.86
$3.10
0.62%
33
franklintempleton.com
Semiannual
Report
Franklin
Utilities
Fund
This
semiannual
report
for
Franklin
Utilities
Fund
covers
the
period
ended
March
31,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
both
capital
appreciation
and
current
income
by
investing
at
least
80%
of
its
net
assets
in
the
securities
of
public
utility
companies.
These
are
companies
that
provide
electricity,
natural
gas,
water,
and
communications
services
to
the
public
and
companies
that
provide
services
to
public
utilities
companies.
The
Fund
concentrates
(invests
more
than
25%
of
its
total
assets)
in
companies
operating
in
the
utilities
industry.
The
Fund
invests
primarily
in
equity
securities,
which
consist
mainly
of
common
stocks.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+18.99%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
S&P
500
Utilities
Index,
which
measures
the
performance
of
all
utilities
stocks
in
the
S&P
500,
posted
a
+18.32%
cumulative
total
return
and
the
Standard
&
Poor’s
500
Index
(S&P
500),
which
is
a
broad
measure
of
U.S.
stock
performance,
posted
a
+5.92%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
35
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Investment
Strategy
We
search
for
the
best
return
opportunities
available
in
the
global
utilities
arena
with
a
specific
focus
on
the
U.S.
electricity
and
gas
sector.
Generally,
we
seek
to
invest
in
companies
producing
a
high
percentage
of
earnings
from
their
regulated
operations.
Manager’s
Discussion
During
the
six-month
period
under
review,
electric
utilities
and
multi-utilities
industries
drove
performance
with
additional,
notable
contribution
from
oil,
gas
and
consumable
fuels.
No
industries
detracted
on
an
absolute
basis.
Among
the
individual
contributors,
Chicago-based
electric
power
company
Exelon
led
the
way,
benefiting
from
electricity
prices
that
reached
a
decade-plus
high
in
2021
amid
the
recovery
from
the
depths
of
the
pandemic.
Exelon’s
January
2022
spin-off
of
Constellation
Energy
(also
a
Fund
holding),
its
power
generation
business,
was
well-received
by
investors,
who
received
shares
of
the
new
company,
which
stands
to
benefit
from
potential
regulatory
support
for
nuclear
power
as
the
U.S.
moves
toward
a
clean
energy
grid.
Recent
earnings
results
have
been
relatively
positive,
although
a
2021
winter
storm
in
Texas
had
a
negative
impact
on
its
full
year
2021
earnings.
Energy
infrastructure
company
Sempra
Energy,
based
in
San
Diego,
also
contributed.
The
company’s
core
natural
gas
and
electricity
business
serves
30
million-plus
customers
in
California
and
Texas
and
has
benefited
from
California’s
constructive
regulatory
environment
and
Texas’
aggressive
efforts
to
build
out
wind
energy.
The
anticipated
demand
for
U.S.
liquified
natural
gas
following
Russia’s
invasion
of
Ukraine
will
likely
benefit
Sempra’s
infrastructure
business,
which
also
bolstered
the
stock.
In
February,
Sempra
announced
strong
guidance
for
2022
and
2023,
supported
by
a
sizable
capital
expenditure
plan,
and
boosted
its
dividend.
Portfolio
Composition
3/31/22
%
of
Total
Net
Assets
Electric
Utilities
57.2%
Multi-Utilities
32.8%
Oil,
Gas
&
Consumable
Fuels
2.2%
Gas
Utilities
1.8%
Water
Utilities
1.5%
Independent
Power
and
Renewable
Electricity
Producers
1.3%
Diversified
Telecommunication
Services
1.1%
Other
1.0%
Short-Term
Investments
&
Other
Net
Assets
1.1%
1.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
105
.
Franklin
Utilities
Fund
34
franklintempleton.com
Semiannual
Report
Renewable
power
producer
and
electric
utility
NextEra
Energy
reported
double-digit
earnings
growth
for
2021,
fueled
by
both
its
regulated
utilities
and
its
energy
resources
unit.
The
latter
includes
NextEra’s
renewable
power
business,
which
has
grown
quickly
and
boasts
a
backlog
of
new
projects,
supported
by
Florida’s
friendly
regulatory
environment.
We
believe
the
company
can
develop
those
projects
in
a
cost-effective
manner.
NextEra’s
guidance
for
2022
and
2023
forecasts
a
similar
growth
path
to
2021,
and
the
company’s
fundamentals
have
remained
robust.
We
believe
that
the
company
is
well-positioned
for
strong
long-
term
growth
regardless
of
the
regulatory
environment.
Conversely,
Germany-based
energy
giant
E.ON,
in
the
multi-utilities
industry,
was
the
lone
individual
holding
to
meaningfully
detract
from
absolute
performance
during
the
period.
E.ON
shares,
which
stood
at
multi-year
highs
in
mid-
February
2022
after
recording
strong
profit
growth
in
2021,
declined
sharply
after
Russia
invaded
Ukraine.
In
March,
the
company
lowered
its
2022
earnings
guidance,
admitting
that
the
impact
of
the
war
was
unpredictable.
Thank
you
for
your
continued
participation
in
Franklin
Utilities
Fund.
We
look
forward
to
serving
your
future
investment
needs.
John
C.
Kohli,
CFA
J.
Blair
Schmicker,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
March
31,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
3/31/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
NextEra
Energy,
Inc.
11.7%
Electric
Utilities,
United
States
CMS
Energy
Corp.
4.8%
Multi-Utilities,
United
States
Dominion
Energy,
Inc.
4.6%
Multi-Utilities,
United
States
Sempra
Energy
4.3%
Multi-Utilities,
United
States
Duke
Energy
Corp.
4.3%
Electric
Utilities,
United
States
Edison
International
4.3%
Electric
Utilities,
United
States
Southern
Co.
(The)
4.2%
Electric
Utilities,
United
States
American
Electric
Power
Co.,
Inc.
3.9%
Electric
Utilities,
United
States
Exelon
Corp.
3.8%
Electric
Utilities,
United
States
Entergy
Corp.
3.6%
Electric
Utilities,
United
States
Performance
Summary
as
of
March
31,
2022
Franklin
Utilities
Fund
35
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class
:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+18.99%
+14.53%
1-Year
+20.35%
+15.83%
5-Year
+64.75%
+9.66%
10-Year
+186.05%
+10.66%
Advisor
6-Month
+19.14%
+19.14%
1-Year
+20.70%
+20.70%
5-Year
+66.62%
+10.75%
10-Year
+191.59%
+11.30%
Share
Class
Distribution
Rate
5
30-Day
Standardized
Yield
6
A
1.91%
2.03%
Advisor
2.20%
2.35%
See
page
36
for
Performance
Summary
footnotes.
Franklin
Utilities
Fund
Performance
Summary
36
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
loss
of
principal.
Investing
in
a
Fund
concentrating
in
the
utilities
sector
involves
special
risks,
including
increased
susceptibility
to
adverse
economic
and
regulatory
developments
affecting
the
sector.
Stocks
historically
have
outperformed
other
asset
classes
over
the
long
term,
but
tend
to
fluctuate
more
dramatically
over
the
short
term.
Securities
issued
by
utility
companies
have
been
historically
sensitive
to
interest
rate
changes.
When
interest
rates
fall,
utility
securities
prices,
and
thus
a
utilities
Fund’s
share
price,
tend
to
rise;
when
interest
rates
rise,
their
prices
generally
fall.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
imposed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
current
quarterly
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
3/31/22.
6.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
7.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Net
Asset
Value
Share
Class
(Symbol)
3/31/22
9/30/21
Change
A
(FKUQX)
$23.08
$20.20
+$2.88
A1
(FKUTX)
$23.09
$20.21
+$2.88
C
(FRUSX)
$22.95
$20.09
+$2.86
R
(FRURX)
$22.98
$20.12
+$2.86
R6
(FUFRX)
$23.32
$20.40
+$2.92
Advisor
(FRUAX)
$23.32
$20.40
+$2.92
Distributions
(10/1/21–3/31/22)
Share
Class
Net
Investment
Income
Short-Term
Capital
Gain
Long-Term
Capital
Gain
Total
A
$0.2416
$0.0658
$0.5338
$0.8412
A1
$0.2523
$0.0658
$0.5338
$0.8519
C
$0.1993
$0.0658
$0.5338
$0.7989
R
$0.2152
$0.0658
$0.5338
$0.8148
R6
$0.2758
$0.0658
$0.5338
$0.8754
Advisor
$0.2682
$0.0658
$0.5338
$0.8678
Total
Annual
Operating
Expenses
7
Share
Class
A
0.82%
Advisor
0.57%
Your
Fund’s
Expenses
Franklin
Utilities
Fund
37
franklintempleton.com
Semianual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/21
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
Ending
Account
Value
3/31/22
Expenses
Paid
During
Period
10/1/21–3/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,189.90
$4.50
$1,020.82
$4.16
0.83%
A1
$1,000
$1,190.40
$3.96
$1,021.32
$3.65
0.73%
C
$1,000
$1,187.60
$6.68
$1,018.83
$6.16
1.22%
R
$1,000
$1,188.20
$5.86
$1,019.57
$5.41
1.07%
R6
$1,000
$1,191.90
$2.74
$1,022.43
$2.53
0.50%
Advisor
$1,000
$1,191.40
$3.14
$1,022.07
$2.90
0.58%
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$157.23
$121.24
$82.84
$81.16
$63.10
$52.05
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.40)
(0.82)
(0.38)
(0.20)
(0.23)
(0.18)
Net
realized
and
unrealized
gains
(losses)
(25.64)
36.81
39.44
3.79
19.45
12.92
Total
from
investment
operations
........
(26.04)
35.99
39.06
3.59
19.22
12.74
Less
distributions
from:
Net
realized
gains
.................
(2.22)
—
(0.66)
(1.91)
(1.16)
(1.69)
Net
asset
value,
end
of
period
..........
$128.97
$157.23
$121.24
$82.84
$81.16
$63.10
Total
return
c
.......................
(16.80)%
29.68%
47.47%
4.77%
30.88%
25.67%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.77%
0.79%
0.85%
0.86%
0.86%
0.92%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.77%
f
0.79%
f
0.84%
0.85%
0.86%
f
0.91%
Net
investment
(loss)
................
(0.55)%
(0.56)%
(0.39)%
(0.26)%
(0.32)%
(0.33)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$10,221,961
$12,129,483
$8,378,574
$4,504,434
$3,741,562
$2,498,393
Portfolio
turnover
rate
................
25.05%
18.77%
13.82%
20.01%
17.22%
19.85%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$128.06
$99.49
$68.60
$68.07
$53.49
$44.71
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.77)
(1.55)
(0.91)
(0.66)
(0.65)
(0.50)
Net
realized
and
unrealized
gains
(losses)
(20.76)
30.12
32.46
3.10
16.39
10.97
Total
from
investment
operations
........
(21.53)
28.57
31.55
2.44
15.74
10.47
Less
distributions
from:
Net
realized
gains
.................
(2.22)
—
(0.66)
(1.91)
(1.16)
(1.69)
Net
asset
value,
end
of
period
..........
$104.31
$128.06
$99.49
$68.60
$68.07
$53.49
Total
return
c
.......................
(17.11)%
28.72%
46.37%
3.97%
29.93%
24.72%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.52%
1.54%
1.60%
1.61%
1.61%
1.67%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.52%
f
1.54%
f
1.59%
1.60%
1.61%
f
1.66%
Net
investment
(loss)
................
(1.30)%
(1.31)%
(1.14)%
(1.01)%
(1.07)%
(1.08)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,071,130
$1,339,016
$1,095,702
$597,927
$611,221
$374,502
Portfolio
turnover
rate
................
25.05%
18.77%
13.82%
20.01%
17.22%
19.85%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$151.52
$117.13
$80.26
$78.88
$61.51
$50.90
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.56)
(1.14)
(0.60)
(0.39)
(0.40)
(0.31)
Net
realized
and
unrealized
gains
(losses)
(24.67)
35.53
38.13
3.68
18.93
12.61
Total
from
investment
operations
........
(25.23)
34.39
37.53
3.29
18.53
12.30
Less
distributions
from:
Net
realized
gains
.................
(2.22)
—
(0.66)
(1.91)
(1.16)
(1.69)
Net
asset
value,
end
of
period
..........
$124.07
$151.52
$117.13
$80.26
$78.88
$61.51
Total
return
c
.......................
(16.90)%
29.36%
47.09%
4.52%
30.57%
25.36%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.02%
1.04%
1.10%
1.11%
1.11%
1.17%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.02%
f
1.04%
f
1.09%
1.10%
1.11%
f
1.16%
Net
investment
(loss)
................
(0.80)%
(0.81)%
(0.63)%
(0.51)%
(0.57)%
(0.58)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$263,814
$311,646
$221,041
$123,721
$95,925
$47,860
Portfolio
turnover
rate
................
25.05%
18.77%
13.82%
20.01%
17.22%
19.85%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
41
ue
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$165.26
$127.01
$86.46
$84.31
$65.28
$53.56
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.17)
(0.36)
(0.05)
0.07
0.04
0.06
Net
realized
and
unrealized
gains
(losses)
(26.99)
38.61
41.26
3.99
20.15
13.35
Total
from
investment
operations
........
(27.16)
38.25
41.21
4.06
20.19
13.41
Less
distributions
from:
Net
realized
gains
.................
(2.22)
—
(0.66)
(1.91)
(1.16)
(1.69)
Net
asset
value,
end
of
period
..........
$135.88
$165.26
$127.01
$86.46
$84.31
$65.28
Total
return
c
.......................
(16.66)%
30.12%
47.97%
5.15%
31.38%
26.17%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.45%
0.46%
0.50%
0.51%
0.50%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.44%
0.46%
f
0.50%
f
0.50%
0.50%
f
0.48%
Net
investment
income
(loss)
..........
(0.22)%
(0.23)%
(0.05)%
0.09%
0.04%
0.10%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$8,703,193
$9,820,184
$5,817,028
$2,473,942
$1,688,595
$457,846
Portfolio
turnover
rate
................
25.05%
18.77%
13.82%
20.01%
17.22%
19.85%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$163.27
$125.58
$85.58
$83.56
$64.78
$53.25
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.23)
(0.48)
(0.15)
(0.01)
(0.06)
(0.04)
Net
realized
and
unrealized
gains
(losses)
(26.65)
38.17
40.81
3.94
20.00
13.26
Total
from
investment
operations
........
(26.88)
37.69
40.66
3.93
19.94
13.22
Less
distributions
from:
Net
realized
gains
.................
(2.22)
—
(0.66)
(1.91)
(1.16)
(1.69)
Net
asset
value,
end
of
period
..........
$134.17
$163.27
$125.58
$85.58
$83.56
$64.78
Total
return
c
.......................
(16.69)%
30.01%
47.83%
5.04%
31.21%
25.98%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.52%
0.54%
0.60%
0.61%
0.61%
0.67%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.52%
f
0.54%
f
0.59%
0.60%
0.61%
f
0.66%
Net
investment
(loss)
................
(0.30
)%
(0.32)%
(0.15)%
(0.01)%
(0.07)%
(0.08)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$3,616,914
$4,352,531
$2,884,489
$1,154,604
$680,066
$712,762
Portfolio
turnover
rate
................
25.05%
18.77%
13.82%
20.01%
17.22%
19.85%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2022
Franklin
DynaTech
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
43
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
98.7%
Aerospace
&
Defense
0.7%
a
Axon
Enterprise,
Inc.
...................................
United
States
800,000
$
110,184,000
HEICO
Corp.
........................................
United
States
375,000
57,577,500
167,761,500
Automobiles
3.0%
a
Tesla,
Inc.
...........................................
United
States
665,000
716,604,000
Banks
0.6%
a
SVB
Financial
Group
...................................
United
States
275,000
153,848,750
Biotechnology
0.4%
a
Argenx
SE
..........................................
Netherlands
250,000
78,228,428
a
Intellia
Therapeutics,
Inc.
................................
United
States
400,000
29,068,000
107,296,428
Capital
Markets
2.9%
CME
Group,
Inc.
......................................
United
States
250,000
59,465,000
FactSet
Research
Systems,
Inc.
..........................
United
States
80,000
34,732,000
Moody's
Corp.
........................................
United
States
350,000
118,093,500
MSCI,
Inc.
...........................................
United
States
500,000
251,440,000
Tradeweb
Markets,
Inc.,
A
...............................
United
States
2,500,000
219,675,000
683,405,500
Chemicals
0.8%
Corteva
,
Inc.
.........................................
United
States
1,175,000
67,539,000
FMC
Corp.
..........................................
United
States
250,000
32,892,500
Linde
plc
............................................
United
Kingdom
300,000
95,740,682
196,172,182
Construction
&
Engineering
0.3%
Quanta
Services,
Inc.
..................................
United
States
505,000
66,463,050
Electric
Utilities
1.2%
NextEra
Energy,
Inc.
...................................
United
States
3,500,000
296,485,000
Electronic
Equipment,
Instruments
&
Components
1.6%
Amphenol
Corp.,
A
....................................
United
States
2,000,000
150,700,000
Keyence
Corp.
.......................................
Japan
200,000
92,751,951
a
Keysight
Technologies,
Inc.
..............................
United
States
300,000
47,391,000
a
Trimble,
Inc.
.........................................
United
States
275,000
19,838,500
a
Zebra
Technologies
Corp.,
A
.............................
United
States
200,000
82,740,000
393,421,451
Energy
Equipment
&
Services
0.4%
Baker
Hughes
Co.
.....................................
United
States
2,400,000
87,384,000
Entertainment
0.7%
a
Sea
Ltd.,
ADR
........................................
Taiwan
1,400,000
167,706,000
Equity
Real
Estate
Investment
Trusts
(REITs)
0.9%
Crown
Castle
International
Corp.
..........................
United
States
200,000
36,920,000
SBA
Communications
Corp.
.............................
United
States
500,000
172,050,000
208,970,000
Health
Care
Equipment
&
Supplies
6.8%
Abbott
Laboratories
....................................
United
States
1,650,000
195,294,000
a
Dexcom
,
Inc.
.........................................
United
States
250,000
127,900,000
a
Edwards
Lifesciences
Corp.
.............................
United
States
1,400,000
164,808,000
a
IDEXX
Laboratories,
Inc.
................................
United
States
725,000
396,618,500
a
Insulet
Corp.
.........................................
United
States
325,000
86,576,750
a
Intuitive
Surgical,
Inc.
..................................
United
States
950,000
286,596,000
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Health
Care
Equipment
&
Supplies
(continued)
STERIS
plc
..........................................
United
States
1,000,000
$
241,770,000
Stryker
Corp.
........................................
United
States
500,000
133,675,000
1,633,238,250
Health
Care
Providers
&
Services
1.1%
UnitedHealth
Group,
Inc.
................................
United
States
500,000
254,985,000
Health
Care
Technology
1.7%
a
Doximity
,
Inc.,
A
......................................
United
States
300,000
15,627,000
a
Inspire
Medical
Systems,
Inc.
............................
United
States
800,000
205,352,000
a
Veeva
Systems,
Inc.,
A
.................................
United
States
900,000
191,214,000
412,193,000
Hotels,
Restaurants
&
Leisure
1.0%
a
Airbnb,
Inc.,
A
........................................
United
States
800,000
137,408,000
a
Booking
Holdings,
Inc.
.................................
United
States
40,000
93,938,000
231,346,000
Industrial
Conglomerates
1.0%
Roper
Technologies,
Inc.
................................
United
States
500,000
236,115,000
Interactive
Media
&
Services
6.3%
a
Alphabet,
Inc.,
A
......................................
United
States
300,000
834,405,000
a
Alphabet,
Inc.,
C
......................................
United
States
100,000
279,299,000
a
Match
Group,
Inc.
.....................................
United
States
400,000
43,496,000
a
Meta
Platforms,
Inc.,
A
.................................
United
States
500,000
111,180,000
Tencent
Holdings
Ltd.
..................................
China
500,000
23,047,319
a
ZoomInfo
Technologies,
Inc.,
A
...........................
United
States
3,500,000
209,090,000
1,500,517,319
Internet
&
Direct
Marketing
Retail
7.8%
a
Amazon.com,
Inc.
.....................................
United
States
500,000
1,629,975,000
a
JD.com,
Inc.,
A
.......................................
China
47,619
1,353,097
a
MercadoLibre
,
Inc.
....................................
Brazil
190,000
226,001,200
1,857,329,297
IT
Services
9.2%
Accenture
plc,
A
......................................
United
States
65,000
21,919,950
a,b
Adyen
NV,
144A,
Reg
S
................................
Netherlands
200,000
396,192,678
a
Cloudflare
,
Inc.,
A
.....................................
United
States
100,000
11,970,000
a
Endava
plc,
ADR
......................................
United
Kingdom
350,000
46,560,500
a
EPAM
Systems,
Inc.
...................................
United
States
200,000
59,322,000
a
Globant
SA
..........................................
United
States
250,000
65,517,500
Mastercard
,
Inc.,
A
....................................
United
States
1,625,000
580,742,500
a
MongoDB,
Inc.
.......................................
United
States
700,000
310,513,000
a
Okta
,
Inc.
...........................................
United
States
150,000
22,644,000
a
Shopify,
Inc.,
A
.......................................
Canada
400,000
270,496,301
a
Snowflake,
Inc.,
A
.....................................
United
States
500,000
114,565,000
a
Thoughtworks
Holding,
Inc.
..............................
United
States
547,700
11,397,637
a
Twilio
,
Inc.,
A
.........................................
United
States
400,000
65,924,000
Visa,
Inc.,
A
..........................................
United
States
1,000,000
221,770,000
2,199,535,066
Life
Sciences
Tools
&
Services
7.3%
a
Bio-Rad
Laboratories,
Inc.,
A
.............................
United
States
200,000
112,646,000
Bio-
Techne
Corp.
.....................................
United
States
100,000
43,304,000
Bruker
Corp.
.........................................
United
States
350,000
22,505,000
Danaher
Corp.
.......................................
United
States
2,000,000
586,660,000
a
Evotec
SE
...........................................
Germany
550,000
16,553,199
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Life
Sciences
Tools
&
Services
(continued)
a
Evotec
SE,
ADR
......................................
Germany
700,000
$
10,591,000
a
Illumina,
Inc.
.........................................
United
States
100,000
34,940,000
Lonza
Group
AG
......................................
Switzerland
200,000
144,920,791
a
Repligen
Corp.
.......................................
United
States
1,000,000
188,090,000
Thermo
Fisher
Scientific,
Inc.
............................
United
States
1,000,000
590,650,000
1,750,859,990
Media
0.1%
a
Liberty
Broadband
Corp.,
A
..............................
United
States
97,400
12,765,244
Pharmaceuticals
1.8%
AstraZeneca
plc,
ADR
..................................
United
Kingdom
725,000
48,096,500
a
Catalent
,
Inc.
........................................
United
States
1,900,000
210,710,000
Zoetis,
Inc.
..........................................
United
States
900,000
169,731,000
428,537,500
Professional
Services
0.2%
a
CoStar
Group,
Inc.
....................................
United
States
900,000
59,949,000
Semiconductors
&
Semiconductor
Equipment
14.1%
a
Advanced
Micro
Devices,
Inc.
............................
United
States
1,400,000
153,076,000
Analog
Devices,
Inc.
...................................
United
States
1,725,000
284,935,500
ASM
International
NV
..................................
Netherlands
150,000
54,627,169
ASML
Holding
NV,
NYRS
...............................
Netherlands
750,000
500,947,500
Entegris
,
Inc.
.........................................
United
States
1,000,000
131,260,000
a,c
GLOBALFOUNDRIES,
Inc.
..............................
United
States
1,200,000
74,904,000
Intel
Corp.
...........................................
United
States
750,000
37,170,000
KLA
Corp.
...........................................
United
States
500,000
183,030,000
Lam
Research
Corp.
...................................
United
States
500,000
268,805,000
Marvell
Technology,
Inc.
................................
United
States
850,000
60,953,500
Monolithic
Power
Systems,
Inc.
...........................
United
States
500,000
242,840,000
NVIDIA
Corp.
........................................
United
States
4,000,000
1,091,440,000
a
SiTime
Corp.
.........................................
United
States
500,000
123,910,000
Teradyne,
Inc.
........................................
United
States
1,300,000
153,699,000
3,361,597,669
Software
25.1%
a
Adobe,
Inc.
..........................................
United
States
450,000
205,029,000
a
ANSYS,
Inc.
.........................................
United
States
600,000
190,590,000
a
Aspen
Technology,
Inc.
.................................
United
States
350,000
57,879,500
a
Atlassian
Corp.
plc,
A
..................................
United
States
1,100,000
323,213,000
a
Avalara,
Inc.
.........................................
United
States
1,000,000
99,510,000
a
Bill.com
Holdings,
Inc.
..................................
United
States
400,000
90,716,000
a
Cadence
Design
Systems,
Inc.
...........................
United
States
2,100,000
345,366,000
a
Crowdstrike
Holdings,
Inc.,
A
.............................
United
States
600,000
136,248,000
a,c
CS
Disco,
Inc.
........................................
United
States
100,000
3,397,000
a
Datadog
,
Inc.,
A
......................................
United
States
1,500,000
227,205,000
a
Descartes
Systems
Group,
Inc.
(The)
......................
Canada
350,000
25,641,000
a
Fortinet,
Inc.
.........................................
United
States
300,000
102,522,000
a
HubSpot
,
Inc.
........................................
United
States
850,000
403,699,000
Intuit,
Inc.
...........................................
United
States
1,025,000
492,861,000
Microsoft
Corp.
.......................................
United
States
4,000,000
1,233,240,000
a
Palo
Alto
Networks,
Inc.
................................
United
States
250,000
155,627,500
a
Paycom
Software,
Inc.
.................................
United
States
185,000
64,080,300
a
Procore
Technologies,
Inc.
..............................
United
States
1,200,000
69,552,000
a
salesforce.com,
Inc.
...................................
United
States
1,400,000
297,248,000
a,c
SentinelOne
,
Inc.,
A
...................................
United
States
250,000
9,685,000
a
ServiceNow
,
Inc.
......................................
United
States
1,100,000
612,579,000
a
Synopsys,
Inc.
.......................................
United
States
1,250,000
416,587,500
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Software
(continued)
a
Tyler
Technologies,
Inc.
.................................
United
States
300,000
$
133,467,000
a
Workday,
Inc.,
A
......................................
United
States
1,050,000
251,433,000
a
Zscaler
,
Inc.
.........................................
United
States
200,000
48,256,000
5,995,631,800
Technology
Hardware,
Storage
&
Peripherals
1.5%
Apple,
Inc.
..........................................
United
States
2,000,000
349,220,000
Trading
Companies
&
Distributors
0.2%
Fastenal
Co.
.........................................
United
States
650,000
38,610,000
Total
Common
Stocks
(Cost
$13,422,520,717)
...................................
23,567,947,996
Short
Term
Investments
1.5%
a
a
Country
Shares
a
Value
a
a
Money
Market
Funds
1.3%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
313,640,695
313,640,695
Total
Money
Market
Funds
(Cost
$313,640,695)
.................................
313,640,695
f
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.2%
a
a
a
a
Money
Market
Funds
0.2%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
32,940,000
32,940,000
Principal
Amount
*
Repurchase
Agreements
0.0%
†
g
Joint
Repurchase
Agreement,
BNP
Paribas
SA,
0.28%,
4/01/22
(Maturity
Value
$8,235,562)
Collateralized
by
U.S.
Treasury
Bond,
6%,
2/15/26;
U.S.
Treasury
Bonds,
Strips,
8/15/24
-
2/15/26;
U.S.
Treasury
Notes,
0.125%
-
2.875%,
10/31/22
-
1/31/27;
and
U.S.
Treasury
Notes,
Index
Linked,
0.125%
-
0.625%,
1/15/24
-
7/15/26
(valued
at
$8,400,209)
8,235,498
8,235,498
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$41,175,498)
...........................................................
41,175,498
Total
Short
Term
Investments
(Cost
$354,816,193
)
...............................
354,816,193
a
Total
Investments
(Cost
$13,777,336,910)
100.2%
...............................
$23,922,764,189
Other
Assets,
less
Liabilities
(0.2)%
...........................................
(45,753,271)
Net
Assets
100.0%
...........................................................
$23,877,010,918
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
See
Abbreviations
on
page
142
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
March
31,
2022,
the
value
of
this
security
was
$396,192,678,
representing
1.7%
of
net
assets.
c
A
portion
or
all
of
the
security
is
on
loan
at
March
31,
2022.
See
Note
1(g).
d
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
f
See
Note
1(g)
regarding
securities
on
loan.
g
See
Note
1(c)
regarding
joint
repurchase
agreement.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Focused
Growth
Fund
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Semiannual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Year
Ended
September
30,
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$31.61
$25.05
$20.16
Income
from
investment
operations
b
:
Net
investment
(loss)
c
...................................................
(0.12)
(0.23)
(0.10)
Net
realized
and
unrealized
gains
(losses)
....................................
(4.12)
7.00
4.99
Total
from
investment
operations
.............................................
(4.24)
6.77
4.89
Less
distributions
from:
Net
realized
gains
......................................................
(0.18)
(0.21)
—
Net
asset
value,
end
of
period
...............................................
$27.19
$31.61
$25.05
Total
return
d
............................................................
(13.51)%
27.17%
24.26%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...............................
1.40%
1.36%
1.81%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
1.10%
f
1.10%
f
1.10%
Net
investment
(loss)
.....................................................
(0.81)%
(0.78)%
(0.72)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$76,784
$80,509
$26,793
Portfolio
turnover
rate
.....................................................
26.85%
22.77%
33.93%
a
For
the
period
February
14,
2020
(effective
date)
to
September
30,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Focused
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
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an
integral
part
of
these
financial
statements.
Semiannual
Report
49
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Year
Ended
September
30,
2020
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$31.23
$24.94
$20.16
Income
from
investment
operations
b
:
Net
investment
(loss)
c
...................................................
(0.23)
(0.44)
(0.21)
Net
realized
and
unrealized
gains
(losses)
....................................
(4.05)
6.94
4.99
Total
from
investment
operations
.............................................
(4.28)
6.50
4.78
Less
distributions
from:
Net
realized
gains
......................................................
(0.18)
(0.21)
—
Net
asset
value,
end
of
period
...............................................
$26.77
$31.23
$24.94
Total
return
d
............................................................
(13.80)%
26.20%
23.71%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...............................
2.15%
2.12%
2.56%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
1.85%
f
1.85%
f
1.85%
Net
investment
(loss)
.....................................................
(1.55)%
(1.53)%
(1.47)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$6,036
$6,028
$3,931
Portfolio
turnover
rate
.....................................................
26.85%
22.77%
33.93%
a
For
the
period
February
14,
2020
(effective
date)
to
September
30,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Focused
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Year
Ended
September
30,
2020
a
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$31.53
$25.06
$20.16
Income
from
investment
operations
b
:
Net
investment
(loss)
c
...................................................
(0.16)
(0.31)
(0.11)
Net
realized
and
unrealized
gains
(losses)
....................................
(4.10)
6.99
5.01
Total
from
investment
operations
.............................................
(4.26)
6.68
4.90
Less
distributions
from:
Net
realized
gains
......................................................
(0.18)
(0.21)
—
Net
asset
value,
end
of
period
...............................................
$27.09
$31.53
$25.06
Total
return
d
............................................................
(13.61)%
26.79%
24.31%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...............................
1.64%
1.66%
1.65%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
1.35%
f
1.38%
f
1.04%
Net
investment
(loss)
.....................................................
(1.06)%
(1.05)%
(0.77)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$807
$984
$643
Portfolio
turnover
rate
.....................................................
26.85%
22.77%
33.93%
a
For
the
period
February
14,
2020
(effective
date)
to
September
30,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Focused
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
51
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Year
Ended
September
30,
2020
a
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$31.78
$25.10
$20.16
Income
from
investment
operations
b
:
Net
investment
(loss)
c
...................................................
(0.07)
(0.13)
(0.07)
Net
realized
and
unrealized
gains
(losses)
....................................
(4.14)
7.02
5.01
Total
from
investment
operations
.............................................
(4.21)
6.89
4.94
Less
distributions
from:
Net
realized
gains
......................................................
(0.18)
(0.21)
—
Net
asset
value,
end
of
period
...............................................
$27.39
$31.78
$25.10
Total
return
d
............................................................
(13.34)%
27.59%
24.50%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...............................
1.03%
1.05%
2.08%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
0.73%
f
0.77%
f
0.85%
Net
investment
(loss)
.....................................................
(0.43)%
(0.44)%
(0.52)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$65
$75
$65
Portfolio
turnover
rate
.....................................................
26.85%
22.77%
33.93%
a
For
the
period
February
14,
2020
(effective
date)
to
September
30,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Focused
Growth
Fund
(continued)
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Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
52
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$31.75
$25.10
$17.62
$17.24
$13.36
$10.93
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.08)
(0.16)
(0.09)
(0.06)
(0.05)
(0.02)
Net
realized
and
unrealized
gains
(losses)
(4.14)
7.02
8.66
0.52
3.93
2.49
Total
from
investment
operations
........
(4.22)
6.86
8.57
0.46
3.88
2.47
Less
distributions
from:
Net
investment
income
..............
—
—
—
(0.01)
—
(0.01)
Net
realized
gains
.................
(0.18)
(0.21)
(1.09)
(0.07)
—
(0.03)
Total
distributions
...................
(0.18)
(0.21)
(1.09)
(0.08)
—
(0.04)
Net
asset
value,
end
of
period
..........
$27.35
$31.75
$25.10
$17.62
$17.24
$13.36
Total
return
c
.......................
(13.38)%
27.47%
51.20%
2.80%
29.04%
22.78%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.13%
1.12%
2.04%
2.41%
2.23%
2.31%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.85%
e
0.85%
e
0.88%
1.00%
1.00%
e
1.00%
e
Net
investment
(loss)
................
(0.56)%
(0.53)%
(0.41)%
(0.36)%
(0.34)%
(0.20)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$13,410
$25,041
$16,747
$4,404
$4,310
$3,341
Portfolio
turnover
rate
................
26.85%
22.77%
33.93%
28.65%
14.47%
28.48%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2022
Franklin
Focused
Growth
Fund
franklintempleton.com
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
53
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
101.5%
Aerospace
&
Defense
1.1%
a
Axon
Enterprise,
Inc.
...................................
United
States
8,000
$
1,101,840
Automobiles
6.0%
a
Tesla,
Inc.
...........................................
United
States
5,400
5,819,040
Capital
Markets
2.3%
MSCI,
Inc.
...........................................
United
States
4,500
2,262,960
Electric
Utilities
4.1%
NextEra
Energy,
Inc.
...................................
United
States
46,500
3,939,015
Energy
Equipment
&
Services
1.0%
Baker
Hughes
Co.
.....................................
United
States
25,400
924,814
Entertainment
0.6%
a
Sea
Ltd.,
ADR
........................................
Taiwan
4,734
567,086
Equity
Real
Estate
Investment
Trusts
(REITs)
2.1%
SBA
Communications
Corp.
.............................
United
States
6,000
2,064,600
Food
&
Staples
Retailing
4.7%
Costco
Wholesale
Corp.
................................
United
States
8,000
4,606,800
Health
Care
Equipment
&
Supplies
7.9%
Abbott
Laboratories
....................................
United
States
20,000
2,367,200
a
IDEXX
Laboratories,
Inc.
................................
United
States
5,000
2,735,300
a
Intuitive
Surgical,
Inc.
..................................
United
States
8,500
2,564,280
7,666,780
Health
Care
Technology
1.1%
a
Veeva
Systems,
Inc.,
A
.................................
United
States
5,000
1,062,300
Interactive
Media
&
Services
5.7%
a
Alphabet,
Inc.,
A
......................................
United
States
2,000
5,562,700
Internet
&
Direct
Marketing
Retail
11.1%
a
Amazon.com,
Inc.
.....................................
United
States
3,000
9,779,850
a
MercadoLibre
,
Inc.
....................................
Brazil
800
951,584
10,731,434
IT
Services
8.4%
a,b
Adyen
NV,
144A,
Reg
S
................................
Netherlands
1,000
1,980,963
a
Cloudflare
,
Inc.,
A
.....................................
United
States
4,293
513,872
Mastercard
,
Inc.,
A
....................................
United
States
11,000
3,931,180
a
Shopify,
Inc.,
A
.......................................
Canada
2,500
1,690,602
8,116,617
Life
Sciences
Tools
&
Services
5.1%
Danaher
Corp.
.......................................
United
States
13,000
3,813,290
a
Repligen
Corp.
.......................................
United
States
6,000
1,128,540
4,941,830
Metals
&
Mining
1.0%
Freeport-McMoRan,
Inc.
................................
United
States
19,177
953,864
Personal
Products
1.3%
Estee
Lauder
Cos.,
Inc.
(The),
A
..........................
United
States
4,500
1,225,440
Road
&
Rail
0.5%
Canadian
Pacific
Railway
Ltd.
............................
Canada
6,067
500,770
Semiconductors
&
Semiconductor
Equipment
16.1%
a
Advanced
Micro
Devices,
Inc.
............................
United
States
15,000
1,640,100
Analog
Devices,
Inc.
...................................
United
States
14,000
2,312,520
ASML
Holding
NV,
NYRS
...............................
Netherlands
5,700
3,807,201
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Focused
Growth
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
s
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
(continued)
NVIDIA
Corp.
........................................
United
States
29,000
$
7,912,940
15,672,761
Software
21.4%
a
Atlassian
Corp.
plc,
A
..................................
United
States
6,000
1,762,980
a
HubSpot
,
Inc.
........................................
United
States
2,000
949,880
Intuit,
Inc.
...........................................
United
States
2,100
1,009,764
Microsoft
Corp.
.......................................
United
States
33,000
10,174,230
a
Procore
Technologies,
Inc.
..............................
United
States
16,000
927,360
a
salesforce.com,
Inc.
...................................
United
States
7,000
1,486,240
a
ServiceNow
,
Inc.
......................................
United
States
6,300
3,508,407
a
Synopsys,
Inc.
.......................................
United
States
3,000
999,810
20,818,671
Total
Common
Stocks
(Cost
$83,061,365)
......................................
98,539,322
Short
Term
Investments
2.1%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
2.1%
c,d
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
2,071,646
2,071,646
Total
Money
Market
Funds
(Cost
$2,071,646)
...................................
2,071,646
Total
Short
Term
Investments
(Cost
$2,071,646
)
.................................
2,071,646
a
Total
Investments
(Cost
$85,133,011)
103.6%
...................................
$100,610,968
Other
Assets,
less
Liabilities
(3.6)%
...........................................
(3,508,929)
Net
Assets
100.0%
...........................................................
$97,102,039
See
abbreviations
on
page
142
.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
March
31,
2022,
the
value
of
this
security
was
$1,980,963,
representing
2.0%
of
net
assets.
c
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
d
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
55
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$151.73
$129.91
$110.04
$107.59
$91.61
$78.54
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.03)
(0.06)
0.33
0.46
0.41
0.40
Net
realized
and
unrealized
gains
(losses)
(2.45)
32.67
25.99
3.47
18.18
15.56
Total
from
investment
operations
........
(2.48)
32.61
26.32
3.93
18.59
15.96
Less
distributions
from:
Net
investment
income
..............
—
(0.18)
(0.46)
(0.44)
(0.36)
(0.39)
Net
realized
gains
.................
(13.82)
(10.61)
(5.99)
(1.04)
(2.25)
(2.50)
Total
distributions
...................
(13.82)
(10.79)
(6.45)
(1.48)
(2.61)
(2.89)
Net
asset
value,
end
of
period
..........
$135.43
$151.73
$129.91
$110.04
$107.59
$91.61
Total
return
c
.......................
(2.14)%
26.44%
25.09%
3.79%
20.72%
21.12%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.78%
0.79%
0.82%
0.83%
0.83%
0.88%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.78%
f
0.79%
f
0.81%
0.83%
f
0.83%
f
0.87%
Net
investment
income
(loss)
..........
(0.05)%
(0.04)%
0.29%
0.45%
0.41%
0.47%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$12,145,775
$12,927,577
$10,990,297
$9,157,154
$9,044,834
$8,051,641
Portfolio
turnover
rate
................
3.27%
g
6.04%
g
9.01%
4.91%
g
6.05%
g
5.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
14.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$134.93
$117.27
$100.21
$98.38
$84.25
$72.60
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.51)
(1.01)
(0.47)
(0.29)
(0.30)
(0.21)
Net
realized
and
unrealized
gains
(losses)
(2.07)
29.28
23.52
3.16
16.68
14.36
Total
from
investment
operations
........
(2.58)
28.27
23.05
2.87
16.38
14.15
Less
distributions
from:
Net
realized
gains
.................
(13.82)
(10.61)
(5.99)
(1.04)
(2.25)
(2.50)
Net
asset
value,
end
of
period
..........
$118.53
$134.93
$117.27
$100.21
$98.38
$84.25
Total
return
c
.......................
(2.51)%
25.51%
24.16%
3.02%
19.82%
20.21%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.53%
1.54%
1.57%
1.58%
1.58%
1.63%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.53%
f
1.54%
f
1.56%
1.58%
f
1.58%
f
1.62%
Net
investment
(loss)
................
(0.80)%
(0.79)%
(0.46)%
(0.30)%
(0.34)%
(0.28)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$592,494
$666,348
$727,093
$704,217
$1,060,258
$930,751
Portfolio
turnover
rate
................
3.27%
g
6.04%
g
9.01%
4.91%
g
6.05%
g
5.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
14.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
57
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$150.77
$129.28
$109.49
$107.00
$91.13
$78.14
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.22)
(0.41)
0.05
0.21
0.16
0.19
Net
realized
and
unrealized
gains
(losses)
(2.40)
32.51
25.86
3.46
18.09
15.51
Total
from
investment
operations
........
(2.62)
32.10
25.91
3.67
18.25
15.70
Less
distributions
from:
Net
investment
income
..............
—
—
(0.13)
(0.14)
(0.13)
(0.21)
Net
realized
gains
.................
(13.82)
(10.61)
(5.99)
(1.04)
(2.25)
(2.50)
Total
distributions
...................
(13.82)
(10.61)
(6.12)
(1.18)
(2.38)
(2.71)
Net
asset
value,
end
of
period
..........
$134.33
$150.77
$129.28
$109.49
$107.00
$91.13
Total
return
c
.......................
(2.25)%
26.13%
24.78%
3.54%
20.42%
20.81%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.03%
1.04%
1.07%
1.08%
1.08%
1.13%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.03%
f
1.04%
f
1.06%
1.08%
f
1.08%
f
1.12%
Net
investment
income
(loss)
..........
(0.30)%
(0.29)%
0.04%
0.20%
0.16%
0.22%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$340,260
$395,301
$420,082
$435,331
$524,960
$510,317
Portfolio
turnover
rate
................
3.27%
g
6.04%
g
9.01%
4.91%
g
6.05%
g
5.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
14.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$152.40
$130.31
$110.37
$107.90
$91.90
$78.79
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.20
0.41
0.71
0.83
0.77
0.74
Net
realized
and
unrealized
gains
(losses)
(2.46)
32.76
26.06
3.47
18.22
15.59
Total
from
investment
operations
........
(2.26)
33.17
26.77
4.30
18.99
16.33
Less
distributions
from:
Net
investment
income
..............
(0.10)
(0.47)
(0.84)
(0.79)
(0.74)
(0.72)
Net
realized
gains
.................
(13.82)
(10.61)
(5.99)
(1.04)
(2.25)
(2.50)
Total
distributions
...................
(13.92)
(11.08)
(6.83)
(1.83)
(2.99)
(3.22)
Net
asset
value,
end
of
period
..........
$136.22
$152.40
$130.31
$110.37
$107.90
$91.90
Total
return
c
.......................
(1.98)%
26.86%
25.51%
4.16%
21.17%
21.61%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.46%
0.47%
0.48%
0.48%
0.47%
0.46%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.46%
f
0.47%
f
0.48%
f
0.48%
f
0.46%
0.45%
Net
investment
income
...............
0.28%
0.29%
0.63%
0.80%
0.78%
0.89%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,741,957
$3,113,946
$2,999,370
$2,545,800
$2,634,455
$1,700,993
Portfolio
turnover
rate
................
3.27%
g
6.04%
g
9.01%
4.91%
g
6.05%
g
5.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
14.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
59
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$152.47
$130.38
$110.41
$107.95
$91.90
$78.80
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.15
0.30
0.62
0.72
0.66
0.60
Net
realized
and
unrealized
gains
(losses)
(2.47)
32.79
26.07
3.47
18.23
15.61
Total
from
investment
operations
........
(2.32)
33.09
26.69
4.19
18.89
16.21
Less
distributions
from:
Net
investment
income
..............
—
(0.39)
(0.73)
(0.69)
(0.59)
(0.61)
Net
realized
gains
.................
(13.82)
(10.61)
(5.99)
(1.04)
(2.25)
(2.50)
Total
distributions
...................
(13.82)
(11.00)
(6.72)
(1.73)
(2.84)
(3.11)
Net
asset
value,
end
of
period
..........
$136.33
$152.47
$130.38
$110.41
$107.95
$91.90
Total
return
c
.......................
(2.02)%
26.76%
25.41%
4.05%
21.02%
21.43%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.53%
0.54%
0.57%
0.58%
0.58%
0.63%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.53%
f
0.54%
f
0.56%
0.58%
f
0.58%
f
0.62%
Net
investment
income
...............
0.20%
0.21%
0.54%
0.70%
0.66%
0.72%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$3,860,036
$4,229,679
$3,549,412
$3,154,342
$3,139,208
$2,801,153
Portfolio
turnover
rate
................
3.27
%
g
6.04%
g
9.01%
4.91%
g
6.05%
g
5.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
14.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2022
Franklin
Growth
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
99.5%
Aerospace
&
Defense
4.3%
BWX
Technologies,
Inc.
................................
United
States
1,391,394
$
74,940,481
Lockheed
Martin
Corp.
.................................
United
States
395,654
174,641,675
Northrop
Grumman
Corp.
...............................
United
States
806,308
360,597,064
Raytheon
Technologies
Corp.
............................
United
States
2,440,830
241,813,028
851,992,248
Auto
Components
0.4%
a
Aptiv
plc
............................................
United
States
605,448
72,478,180
Automobiles
1.0%
a
Lucid
Group,
Inc.
.....................................
United
States
2,621,705
66,591,307
a,b
Rivian
Automotive,
Inc.,
A
...............................
United
States
851,137
42,761,123
a
Tesla,
Inc.
...........................................
United
States
88,100
94,936,560
204,288,990
Beverages
2.8%
Brown-Forman
Corp.,
B
................................
United
States
1,594,103
106,836,783
Constellation
Brands,
Inc.,
A
.............................
United
States
547,076
126,002,544
a
Monster
Beverage
Corp.
................................
United
States
2,672,545
213,536,346
PepsiCo,
Inc.
........................................
United
States
637,643
106,728,685
553,104,358
Biotechnology
1.8%
AbbVie,
Inc.
.........................................
United
States
451,255
73,152,948
Amgen,
Inc.
.........................................
United
States
527,905
127,657,987
a
Argenx
SE,
ADR
......................................
Netherlands
31,400
9,900,734
a
Mirati
Therapeutics,
Inc.
................................
United
States
235,999
19,403,838
a
Neurocrine
Biosciences,
Inc.
.............................
United
States
368,462
34,543,312
a
PTC
Therapeutics,
Inc.
.................................
United
States
962,564
35,913,263
a
Regeneron
Pharmaceuticals,
Inc.
.........................
United
States
74,624
52,118,894
352,690,976
Building
Products
1.2%
Allegion
plc
..........................................
United
States
686,691
75,384,938
Trane
Technologies
plc
.................................
United
States
1,079,086
164,776,432
240,161,370
Capital
Markets
4.4%
BlackRock,
Inc.
.......................................
United
States
225,749
172,510,613
Charles
Schwab
Corp.
(The)
.............................
United
States
2,992,369
252,286,630
Intercontinental
Exchange,
Inc.
...........................
United
States
1,398,216
184,732,298
S&P
Global,
Inc.
......................................
United
States
362,909
148,858,014
Tradeweb
Markets,
Inc.,
A
...............................
United
States
1,169,031
102,722,754
861,110,309
Chemicals
2.3%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
490,494
122,579,355
a,b
Danimer
Scientific,
Inc.
.................................
United
States
214,255
1,255,534
Ecolab,
Inc.
..........................................
United
States
611,807
108,020,644
Linde
plc
............................................
United
Kingdom
712,720
227,664,150
459,519,683
Commercial
Services
&
Supplies
0.4%
Republic
Services,
Inc.
.................................
United
States
638,605
84,615,163
Construction
Materials
0.6%
Martin
Marietta
Materials,
Inc.
............................
United
States
311,440
119,870,142
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
61
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Electric
Utilities
0.9%
NextEra
Energy,
Inc.
...................................
United
States
2,013,942
$
170,601,027
Electrical
Equipment
0.5%
AMETEK,
Inc.
........................................
United
States
686,691
91,453,507
Electronic
Equipment,
Instruments
&
Components
3.0%
Amphenol
Corp.,
A
....................................
United
States
2,841,284
214,090,750
Cognex
Corp.
........................................
United
States
409,421
31,586,830
a
Keysight
Technologies,
Inc.
..............................
United
States
657,494
103,864,327
TE
Connectivity
Ltd.
...................................
Switzerland
1,833,361
240,133,624
589,675,531
Entertainment
1.2%
a
ROBLOX
Corp.,
A
.....................................
United
States
1,218,226
56,330,770
a
Walt
Disney
Co.
(The)
..................................
United
States
1,267,339
173,828,217
230,158,987
Equity
Real
Estate
Investment
Trusts
(REITs)
1.0%
Crown
Castle
International
Corp.
..........................
United
States
1,122,315
207,179,349
Food
&
Staples
Retailing
0.1%
Costco
Wholesale
Corp.
................................
United
States
37,400
21,536,790
Food
Products
0.2%
Lamb
Weston
Holdings,
Inc.
.............................
United
States
537,899
32,225,529
Health
Care
Equipment
&
Supplies
4.8%
Abbott
Laboratories
....................................
United
States
1,249,657
147,909,402
a
Edwards
Lifesciences
Corp.
.............................
United
States
1,177,188
138,578,571
a
Haemonetics
Corp.
....................................
United
States
980,987
62,017,998
a
Intuitive
Surgical,
Inc.
..................................
United
States
1,121,248
338,258,097
Stryker
Corp.
........................................
United
States
402,694
107,660,241
Teleflex,
Inc.
.........................................
United
States
423,207
150,166,540
944,590,849
Health
Care
Providers
&
Services
1.0%
a
Guardant
Health,
Inc.
..................................
United
States
273,430
18,112,003
a
Laboratory
Corp.
of
America
Holdings
......................
United
States
381,522
100,592,090
UnitedHealth
Group,
Inc.
................................
United
States
153,210
78,132,504
196,836,597
Health
Care
Technology
0.3%
a
Certara
,
Inc.
.........................................
United
States
248,652
5,341,045
a
Veeva
Systems,
Inc.,
A
.................................
United
States
270,987
57,573,898
62,914,943
Hotels,
Restaurants
&
Leisure
0.9%
a
Airbnb,
Inc.,
A
........................................
United
States
252,739
43,410,451
a
Booking
Holdings,
Inc.
.................................
United
States
29,049
68,220,124
a
Las
Vegas
Sands
Corp.
.................................
United
States
1,918,347
74,566,148
186,196,723
Interactive
Media
&
Services
4.5%
a
Alphabet,
Inc.,
A
......................................
United
States
146,800
408,302,180
a
Alphabet,
Inc.,
C
......................................
United
States
149,926
418,741,819
a
Match
Group,
Inc.
.....................................
United
States
635,209
69,072,626
896,116,625
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
62
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Internet
&
Direct
Marketing
Retail
4.5%
a
Amazon.com,
Inc.
.....................................
United
States
269,640
$
879,012,918
IT
Services
5.9%
a,c
Adyen
NV,
144A,
Reg
S
................................
Netherlands
59,417
117,702,902
Automatic
Data
Processing,
Inc.
..........................
United
States
109,031
24,808,914
a,d,e
Canva
,
Inc.
..........................................
Australia
25,413
20,070,622
a
Marqeta
,
Inc.,
A
.......................................
United
States
814,946
8,997,004
Mastercard
,
Inc.,
A
....................................
United
States
1,080,002
385,971,115
a
Okta
,
Inc.
...........................................
United
States
392,756
59,290,446
a
Paymentus
Holdings,
Inc.,
A
.............................
United
States
367,494
7,746,773
a
PayPal
Holdings,
Inc.
..................................
United
States
585,237
67,682,659
a
Snowflake,
Inc.,
A
.....................................
United
States
395,392
90,596,169
a
Twilio
,
Inc.,
A
.........................................
United
States
451,116
74,348,428
Visa,
Inc.,
A
..........................................
United
States
1,373,381
304,574,704
1,161,789,736
Life
Sciences
Tools
&
Services
6.2%
a
10X
Genomics,
Inc.,
A
..................................
United
States
314,320
23,910,322
Agilent
Technologies,
Inc.
...............................
United
States
1,275,282
168,758,067
Danaher
Corp.
.......................................
United
States
1,130,127
331,500,153
a
Illumina,
Inc.
.........................................
United
States
590,097
206,179,892
a
Mettler
-Toledo
International,
Inc.
..........................
United
States
237,891
326,669,542
Thermo
Fisher
Scientific,
Inc.
............................
United
States
278,661
164,591,120
1,221,609,096
Machinery
3.8%
Deere
&
Co.
.........................................
United
States
461,182
191,602,674
Dover
Corp.
.........................................
United
States
246,900
38,738,610
Illinois
Tool
Works,
Inc.
.................................
United
States
980,987
205,418,678
Ingersoll
Rand,
Inc.
....................................
United
States
1,925,288
96,938,251
Otis
Worldwide
Corp.
..................................
United
States
520,579
40,058,554
a
Proterra
,
Inc.
.........................................
United
States
2,460,153
18,500,350
Stanley
Black
&
Decker,
Inc.
.............................
United
States
778,762
108,863,140
Xylem,
Inc.
..........................................
United
States
530,104
45,196,667
745,316,924
Media
0.5%
Cable
One,
Inc.
.......................................
United
States
47,674
69,806,178
Comcast
Corp.,
A
.....................................
United
States
787,868
36,887,980
106,694,158
Personal
Products
0.3%
Estee
Lauder
Cos.,
Inc.
(The),
A
..........................
United
States
184,612
50,273,540
a
Olaplex
Holdings,
Inc.
..................................
United
States
360,814
5,639,523
55,913,063
Pharmaceuticals
4.1%
AstraZeneca
plc,
ADR
..................................
United
Kingdom
2,184,542
144,922,516
a
Catalent
,
Inc.
........................................
United
States
2,412,989
267,600,480
Eli
Lilly
&
Co.
........................................
United
States
1,142,881
327,286,832
Johnson
&
Johnson
...................................
United
States
335,433
59,448,791
799,258,619
Professional
Services
1.3%
a
CoStar
Group,
Inc.
....................................
United
States
1,275,638
84,970,247
Equifax,
Inc.
.........................................
United
States
481,120
114,073,552
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
63
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Professional
Services
(continued)
Verisk
Analytics,
Inc.
...................................
United
States
248,824
$
53,405,095
252,448,894
Road
&
Rail
3.7%
Canadian
Pacific
Railway
Ltd.
............................
Canada
1,394,455
115,098,316
JB
Hunt
Transport
Services,
Inc.
..........................
United
States
490,494
98,486,290
a
Uber
Technologies,
Inc.
.................................
United
States
999,629
35,666,763
Union
Pacific
Corp.
....................................
United
States
1,741,780
475,871,714
725,123,083
Semiconductors
&
Semiconductor
Equipment
7.3%
ASML
Holding
NV,
NYRS
...............................
Netherlands
402,541
268,869,210
Lam
Research
Corp.
...................................
United
States
29,431
15,822,400
Monolithic
Power
Systems,
Inc.
...........................
United
States
441,446
214,401,493
NVIDIA
Corp.
........................................
United
States
2,017,847
550,589,733
NXP
Semiconductors
NV
...............................
China
688,867
127,495,504
Texas
Instruments,
Inc.
.................................
United
States
1,373,381
251,987,946
1,429,166,286
Software
16.7%
a
Adobe,
Inc.
..........................................
United
States
167,184
76,172,374
a,b
AppLovin
Corp.,
A
.....................................
United
States
255,331
14,061,078
a
Atlassian
Corp.
plc,
A
..................................
United
States
275,367
80,911,086
a
Autodesk,
Inc.
........................................
United
States
767,572
164,529,058
a
Avalara,
Inc.
.........................................
United
States
849,322
84,516,032
a
Bill.com
Holdings,
Inc.
..................................
United
States
1,062,990
241,075,502
a,d,e
Checkout
Payments
Group
Ltd.,
B
.........................
United
Kingdom
96,603
30,000,062
a
Crowdstrike
Holdings,
Inc.,
A
.............................
United
States
137,545
31,233,719
a,b
Gitlab
,
Inc.,
A
........................................
United
States
102,093
5,558,964
a,b
HashiCorp
,
Inc.,
A
.....................................
United
States
189,231
10,218,474
Intuit,
Inc.
...........................................
United
States
806,313
387,707,543
Microsoft
Corp.
.......................................
United
States
3,245,069
1,000,487,223
a
Paycom
Software,
Inc.
.................................
United
States
185,577
64,280,161
a
Procore
Technologies,
Inc.
..............................
United
States
69,092
4,004,572
a
PTC,
Inc.
...........................................
United
States
1,181,307
127,250,390
a
salesforce.com,
Inc.
...................................
United
States
553,101
117,434,404
a
ServiceNow
,
Inc.
......................................
United
States
787,093
438,324,221
a,d,e
Stripe,
Inc.,
B
........................................
United
States
540,043
15,720,690
a
Synopsys,
Inc.
.......................................
United
States
521,046
173,649,001
a
Tyler
Technologies,
Inc.
.................................
United
States
118,218
52,594,006
a
Workday,
Inc.,
A
......................................
United
States
736,048
176,254,054
3,295,982,614
Technology
Hardware,
Storage
&
Peripherals
4.9%
Apple,
Inc.
..........................................
United
States
5,488,460
958,340,001
Textiles,
Apparel
&
Luxury
Goods
1.3%
NIKE,
Inc.,
B
.........................................
United
States
1,869,347
251,539,332
Trading
Companies
&
Distributors
0.8%
Fastenal
Co.
.........................................
United
States
2,697,023
160,203,166
Water
Utilities
0.6%
American
Water
Works
Co.,
Inc.
..........................
United
States
686,691
113,667,961
Total
Common
Stocks
(Cost
$5,917,918,342)
....................................
19,585,383,727
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Convertible
Preferred
Stocks
0.3%
IT
Services
0.0%
†
a,d,e
Canva
,
Inc.,
A
........................................
Australia
2,353
$
1,858,347
a,d,e
Canva
,
Inc.,
A-3
......................................
Australia
94
74,239
a,d,e
Canva
,
Inc.,
A-4
......................................
Australia
8
6,318
a,d,e
Canva
,
Inc.,
A-5
......................................
Australia
5
3,949
1,942,853
Software
0.3%
a,d,e
Gusto,
Inc.,
E
........................................
United
States
822,494
16,732,791
a,d,e
OneTrust
LLC,
C
......................................
United
States
849,894
13,603,370
a,d,e
Stripe,
Inc.,
H
........................................
United
States
756,137
22,011,201
52,347,362
Total
Convertible
Preferred
Stocks
(Cost
$76,200,357)
...........................
54,290,215
Total
Long
Term
Investments
(Cost
$5,994,118,699)
.............................
19,639,673,942
a
Short
Term
Investments
0.5%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
0.4%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
77,833,192
77,833,192
Total
Money
Market
Funds
(Cost
$77,833,192)
..................................
77,833,192
h
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
a
a
a
a
a
Money
Market
Funds
0.1%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
18,944,000
18,944,000
Principal
Amount
*
Repurchase
Agreements
0.0%
†
i
Joint
Repurchase
Agreement,
BNP
Paribas
SA,
0.28%,
4/01/22
(Maturity
Value
$4,736,366)
Collateralized
by
U.S.
Treasury
Bond,
6%,
2/15/26;
U.S.
Treasury
Bonds,
Strips,
8/15/24
-
2/15/26;
U.S.
Treasury
Notes,
0.125%
-
2.875%,
10/31/22
-
1/31/27;
and
U.S.
Treasury
Notes,
Index
Linked,
0.125%
-
0.625%,
1/15/24
-
7/15/26
(valued
at
$4,831,056)
4,736,329
4,736,329
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$23,680,329)
...........................................................
23,680,329
Total
Short
Term
Investments
(Cost
$101,513,521
)
...............................
101,513,521
a
Total
Investments
(Cost
$6,095,632,220)
100.3%
................................
$19,741,187,463
Other
Assets,
less
Liabilities
(0.3)%
...........................................
(60,665,486)
Net
Assets
100.0%
...........................................................
$19,680,521,977
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
65
See
Abbreviations
on
page
142
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
March
31,
2022.
See
Note
1(g).
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
March
31,
2022,
the
value
of
this
security
was
$117,702,902,
representing
0.6%
of
net
assets.
d
Fair
valued
using
significant
unobservable
inputs.
See
Note
15
regarding
fair
value
measurements.
e
See
Note
10
regarding
restricted
securities.
f
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
h
See
Note
1(g)
regarding
securities
on
loan.
i
See
Note
1(c)
regarding
joint
repurchase
agreement.
Franklin
Custodian
Funds
Financial
Highlights
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Income
Fund
franklintempleton.com
Semiannual
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The
accompanying
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part
of
these
financial
statements.
66
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
Year
Ended
September
30,
2018
a
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$2.47
$2.08
$2.30
$2.32
$2.31
Income
from
investment
operations
b
:
Net
investment
income
(loss)
c
....................
0.03
0.08
0.08
0.08
(0.04)
Net
realized
and
unrealized
gains
(losses)
...........
0.13
0.42
(0.18)
0.02
0.05
Total
from
investment
operations
....................
0.16
0.50
(0.10)
0.10
0.01
Less
distributions
from:
Net
investment
income
..........................
(0.06)
(0.11)
(0.12)
(0.12)
—
Net
realized
gains
.............................
(0.05)
—
—
—
—
Total
distributions
...............................
(0.11)
(0.11)
(0.12)
(0.12)
—
Net
asset
value,
end
of
period
......................
$2.52
$2.47
$2.08
$2.30
$2.32
Total
return
d
...................................
6.54%
24.55%
(4.48)%
4.40%
0.43%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
......
0.72%
0.72%
0.71%
0.72%
0.71%
Expenses
net
of
waiver
and
payments
by
affiliates
f
......
0.71%
0.72%
g
0.70%
0.72%
g
0.71%
g
Net
investment
income
...........................
2.69%
3.19%
3.64%
3.92%
3.89%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$18,177,132
$16,044,379
$10,072,437
$7,427,468
$107,057
Portfolio
turnover
rate
............................
31.91%
68.93%
69.13%
43.63%
49.95%
a
For
the
period
September
10,
2018
(effective
date)
to
September
30,
2018.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Income
Fund
(continued)
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The
accompanying
notes
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an
integral
part
of
these
financial
statements.
Semiannual
Report
67
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.48
$2.08
$2.30
$2.32
$2.39
$2.25
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.03
0.08
0.08
0.09
0.09
0.10
Net
realized
and
unrealized
gains
(losses)
0.13
0.43
(0.18)
0.01
(0.04)
0.16
Total
from
investment
operations
........
0.16
0.51
(0.10)
0.10
0.05
0.26
Less
distributions
from:
Net
investment
income
..............
(0.06)
(0.11)
(0.12)
(0.12)
(0.12)
(0.12)
Net
realized
gains
.................
(0.05)
—
—
—
—
—
Total
distributions
...................
(0.11)
(0.11)
(0.12)
(0.12)
(0.12)
(0.12)
Net
asset
value,
end
of
period
..........
$2.53
$2.48
$2.08
$2.30
$2.32
$2.39
Total
return
c
.......................
6.60%
25.19%
(4.39)%
4.50%
2.18%
11.86%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.62%
0.62%
0.61%
0.62%
0.61%
0.62%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.61%
0.62%
f
0.60%
0.62%
f
0.61%
f
0.61%
Net
investment
income
...............
2.78%
3.32%
3.74%
4.02%
3.99%
4.22%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$36,252,710
$35,704,730
$32,693,224
$39,625,649
$42,929,573
$46,505,632
Portfolio
turnover
rate
................
31.91%
68.93%
69.13%
43.63%
49.95%
34.12%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Income
Fund
(continued)
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Semiannual
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The
accompanying
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part
of
these
financial
statements.
68
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.52
$2.12
$2.34
$2.35
$2.42
$2.27
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.03
0.07
0.07
0.08
0.08
0.09
Net
realized
and
unrealized
gains
(losses)
0.12
0.43
(0.18)
0.02
(0.04)
0.17
Total
from
investment
operations
........
0.15
0.50
(0.11)
0.10
0.04
0.26
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.10)
(0.11)
(0.11)
(0.11)
(0.11)
Net
realized
gains
.................
(0.05)
—
—
—
—
—
Total
distributions
...................
(0.10)
(0.10)
(0.11)
(0.11)
(0.11)
(0.11)
Net
asset
value,
end
of
period
..........
$2.57
$2.52
$2.12
$2.34
$2.35
$2.42
Total
return
c
.......................
6.21%
24.09%
(4.80)%
4.35%
1.61%
11.63%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.12%
1.13%
1.11%
1.12%
1.11%
1.12%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.11%
1.12%
1.10%
1.12%
f
1.11%
f
1.11%
Net
investment
income
...............
2.27%
2.84%
3.24%
3.52%
3.49%
3.72%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$7,216,737
$7,507,658
$9,339,238
$13,488,627
$19,895,441
$23,036,875
Portfolio
turnover
rate
................
31.91%
68.93%
69.13%
43.63%
49.95%
34.12%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
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Franklin
Income
Fund
(continued)
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accompanying
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an
integral
part
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financial
statements.
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69
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.43
$2.04
$2.26
$2.28
$2.35
$2.21
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.03
0.07
0.07
0.08
0.08
0.09
Net
realized
and
unrealized
gains
(losses)
0.11
0.43
(0.18)
0.01
(0.04)
0.16
Total
from
investment
operations
........
0.14
0.50
(0.11)
0.09
0.04
0.25
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.11)
(0.11)
(0.11)
(0.11)
(0.11)
Net
realized
gains
.................
(0.05)
—
—
—
—
—
Total
distributions
...................
(0.10)
(0.11)
(0.11)
(0.11)
(0.11)
(0.11)
Net
asset
value,
end
of
period
..........
$2.47
$2.43
$2.04
$2.26
$2.28
$2.35
Total
return
c
.......................
6.11%
24.75%
(4.82)%
4.20%
1.86%
11.67%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.97%
0.97%
0.96%
0.97%
0.96%
0.97%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.96%
0.97%
f
0.95%
0.97%
f
0.96%
f
0.96%
Net
investment
income
...............
2.44%
2.97%
3.40%
3.67%
3.64%
3.87%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$288,745
$257,109
$221,584
$265,531
$296,098
$361,603
Portfolio
turnover
rate
................
31.91%
68.93%
69.13%
43.63%
49.95%
34.12%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
70
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.47
$2.07
$2.29
$2.30
$2.37
$2.23
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.08
0.09
0.10
0.10
0.11
Net
realized
and
unrealized
gains
(losses)
0.11
0.44
(0.19)
0.01
(0.05)
0.15
Total
from
investment
operations
........
0.15
0.52
(0.10)
0.11
0.05
0.26
Less
distributions
from:
Net
investment
income
..............
(0.06)
(0.12)
(0.12)
(0.12)
(0.12)
(0.12)
Net
realized
gains
.................
(0.05)
—
—
—
—
—
Total
distributions
...................
(0.11)
(0.12)
(0.12)
(0.12)
(0.12)
(0.12)
Net
asset
value,
end
of
period
..........
$2.51
$2.47
$2.07
$2.29
$2.30
$2.37
Total
return
c
.......................
6.30%
25.53%
(4.23)%
5.17%
2.40%
12.15%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.43%
0.43%
0.40%
0.41%
0.39%
0.39%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.41%
0.41%
0.39%
0.40%
0.39%
f
0.38%
Net
investment
income
...............
3.02%
3.50%
3.96%
4.24%
4.21%
4.45%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,235,381
$748,355
$1,626,735
$1,902,027
$2,062,334
$1,815,977
Portfolio
turnover
rate
................
31.91%
68.93%
69.13%
43.63%
49.95%
34.12%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
71
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.46
$2.07
$2.28
$2.30
$2.37
$2.23
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.08
0.08
0.09
0.10
0.10
Net
realized
and
unrealized
gains
(losses)
0.11
0.43
(0.17)
0.01
(0.05)
0.16
Total
from
investment
operations
........
0.15
0.51
(0.09)
0.10
0.05
0.26
Less
distributions
from:
Net
investment
income
..............
(0.06)
(0.12)
(0.12)
(0.12)
(0.12)
(0.12)
Net
realized
gains
.................
(0.05)
—
—
—
—
—
Total
distributions
...................
(0.11)
(0.12)
(0.12)
(0.12)
(0.12)
(0.12)
Net
asset
value,
end
of
period
..........
$2.50
$2.46
$2.07
$2.28
$2.30
$2.37
Total
return
c
.......................
6.32%
24.98%
(3.86)%
4.65%
2.34%
12.09%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.47%
0.47%
0.46%
0.47%
0.46%
0.47%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.46%
0.47%
f
0.45%
0.47%
f
0.46%
f
0.46%
Net
investment
income
...............
2.93%
3.46%
3.89%
4.17%
4.14%
4.37%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$12,799,284
$11,969,691
$9,712,076
$11,816,599
$11,328,761
$11,671,173
Portfolio
turnover
rate
................
31.91%
68.93%
69.13%
43.63%
49.95%
34.12%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2022
Franklin
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
37.2%
Aerospace
&
Defense
1.3%
Lockheed
Martin
Corp.
.................................
United
States
1,500,000
$
662,100,000
Raytheon
Technologies
Corp.
............................
United
States
2,959,550
293,202,619
955,302,619
Banks
3.3%
Bank
of
America
Corp.
.................................
United
States
6,745,000
278,028,900
Barclays
plc
.........................................
United
Kingdom
160,000,000
310,179,843
Citigroup,
Inc.
........................................
United
States
3,504,000
187,113,600
JPMorgan
Chase
&
Co.
.................................
United
States
7,022,500
957,307,200
Truist
Financial
Corp.
..................................
United
States
6,500,000
368,550,000
US
Bancorp
.........................................
United
States
7,000,000
372,050,000
2,473,229,543
Beverages
0.5%
a
PepsiCo,
Inc.
........................................
United
States
2,250,000
376,605,000
Biotechnology
1.6%
a
AbbVie,
Inc.
.........................................
United
States
4,500,000
729,495,000
a
Amgen,
Inc.
.........................................
United
States
2,000,000
483,640,000
1,213,135,000
Capital
Markets
0.5%
a
Morgan
Stanley
.......................................
United
States
4,000,000
349,600,000
Chemicals
0.7%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
1,000,000
249,910,000
BASF
SE
...........................................
Germany
5,500,000
313,875,705
563,785,705
Communications
Equipment
0.7%
Cisco
Systems,
Inc.
...................................
United
States
10,000,000
557,600,000
Containers
&
Packaging
0.3%
International
Paper
Co.
.................................
United
States
4,550,676
210,013,697
Diversified
Telecommunication
Services
2.7%
AT&T,
Inc.
...........................................
United
States
20,000,000
472,600,000
BCE,
Inc.
...........................................
Canada
7,000,000
388,002,399
TELUS
Corp.
........................................
Canada
4,000,000
104,491,102
Verizon
Communications,
Inc.
............................
United
States
22,000,000
1,120,680,000
2,085,773,501
Electric
Utilities
5.2%
American
Electric
Power
Co.,
Inc.
.........................
United
States
8,000,000
798,160,000
a
Constellation
Energy
Corp.
..............................
United
States
2,000,000
112,500,000
Duke
Energy
Corp.
....................................
United
States
6,000,000
669,960,000
Edison
International
...................................
United
States
11,000,000
771,100,000
Entergy
Corp.
........................................
United
States
1,500,000
175,125,000
Exelon
Corp.
.........................................
United
States
6,500,000
309,595,000
b
PG&E
Corp.
.........................................
United
States
10,000,000
119,400,000
PPL
Corp.
...........................................
United
States
3,000,000
85,680,000
Southern
Co.
(The)
....................................
United
States
13,000,000
942,630,000
3,984,150,000
Energy
Equipment
&
Services
0.3%
b,c
Weatherford
International
plc
.............................
United
States
7,000,000
233,100,000
Entertainment
0.1%
a,b
Walt
Disney
Co.
(The)
..................................
United
States
550,000
75,438,000
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
73
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Food
&
Staples
Retailing
0.4%
a
Walmart,
Inc.
........................................
United
States
2,000,500
$
297,914,460
Health
Care
Equipment
&
Supplies
0.6%
Medtronic
plc
........................................
United
States
4,000,000
443,800,000
Health
Care
Providers
&
Services
0.2%
b,c
CHS/Community
Health
Systems,
Inc.
......................
United
States
10,000,000
118,700,000
Household
Products
0.4%
Procter
&
Gamble
Co.
(The)
.............................
United
States
2,250,000
343,800,000
Independent
Power
and
Renewable
Electricity
Producers
0.2%
Vistra
Corp.
..........................................
United
States
5,500,000
127,875,000
Industrial
Conglomerates
1.3%
a
3M
Co.
.............................................
United
States
1,800,000
267,984,000
a
Honeywell
International,
Inc.
.............................
United
States
730,000
142,043,400
Siemens
AG
.........................................
Germany
4,000,000
553,944,443
963,971,843
Insurance
0.4%
MetLife,
Inc.
.........................................
United
States
4,251,698
298,809,336
IT
Services
0.5%
a
International
Business
Machines
Corp.
.....................
United
States
3,000,000
390,060,000
Media
0.4%
Comcast
Corp.,
A
.....................................
United
States
6,873,000
321,793,860
Metals
&
Mining
0.2%
d
BHP
Group
Ltd.,
ADR
..................................
Australia
1,250,000
96,562,500
d
Rio
Tinto
plc,
ADR
.....................................
Australia
1,000,000
80,400,000
176,962,500
Multi-Utilities
2.7%
Dominion
Energy,
Inc.
..................................
United
States
9,000,000
764,730,000
DTE
Energy
Co.
......................................
United
States
3,500,000
462,735,000
Sempra
Energy
.......................................
United
States
5,000,000
840,600,000
2,068,065,000
Oil,
Gas
&
Consumable
Fuels
4.2%
BP
plc,
ADR
.........................................
United
Kingdom
10,000,000
294,000,000
Chesapeake
Energy
Corp.,
(USD
Traded)
...................
United
States
2,300,000
200,100,000
a
Chevron
Corp.
.......................................
United
States
8,000,000
1,302,640,000
a
Exxon
Mobil
Corp.
.....................................
United
States
8,682,000
717,046,380
Shell
plc,
ADR
........................................
Netherlands
5,500,000
302,115,000
TotalEnergies
SE,
ADR
.................................
France
7,000,000
353,780,000
3,169,681,380
Personal
Products
0.6%
Unilever
plc
..........................................
United
Kingdom
10,000,000
454,062,485
Pharmaceuticals
5.1%
AstraZeneca
plc,
ADR
..................................
United
Kingdom
5,000,000
331,700,000
Bayer
AG
...........................................
Germany
5,000,000
342,041,840
Bristol-Myers
Squibb
Co.
................................
United
States
12,000,000
876,360,000
a
Johnson
&
Johnson
...................................
United
States
5,500,000
974,765,000
a
Merck
&
Co.,
Inc.
.....................................
United
States
4,500,000
369,225,000
a
Pfizer,
Inc.
...........................................
United
States
11,500,000
595,355,000
Roche
Holding
AG
....................................
Switzerland
1,000,000
395,661,861
3,885,108,701
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
1.2%
a
Analog
Devices,
Inc.
...................................
United
States
82,000
$
13,544,760
a
Intel
Corp.
...........................................
United
States
10,468,000
518,794,080
a
Texas
Instruments,
Inc.
.................................
United
States
2,000,000
366,960,000
899,298,840
Specialty
Retail
0.4%
a
Home
Depot,
Inc.
(The)
.................................
United
States
1,000,000
299,330,000
Tobacco
0.8%
British
American
Tobacco
plc
.............................
United
Kingdom
2,000,000
84,000,831
a
Philip
Morris
International,
Inc.
...........................
United
States
5,500,000
516,670,000
600,670,831
Wireless
Telecommunication
Services
0.4%
Vodafone
Group
plc
...................................
United
Kingdom
175,000,000
286,984,394
Total
Common
Stocks
(Cost
$23,781,583,401)
...................................
28,224,621,695
e
Equity-Linked
Securities
17.7%
Airlines
0.2%
f
BNP
Paribas
Issuance
BV
into
Delta
Air
Lines,
Inc.,
144A,
10%,
5/03/22
...........................................
United
States
3,507,000
143,017,638
Automobiles
0.6%
f
Citigroup
Global
Markets
Holdings,
Inc.
into
General
Motors
Co.,
144A,
12%,
11/10/22
.................................
United
States
2,895,000
126,377,698
f
Merrill
Lynch
International
&
Co.
CV
into
Ford
Motor
Co.,
144A,
12%,
12/07/22
..........................................
United
States
6,892,000
122,522,180
f
Royal
Bank
of
Canada
into
General
Motors
Co.,
144A,
12%,
3/17/23
United
States
4,900,000
229,385,061
478,284,939
Banks
2.5%
f
Barclays
Bank
plc
into
Truist
Financial
Corp.,
144A,
8%,
8/17/22
..
United
States
2,740,000
153,622,193
f
BNP
Paribas
Issuance
BV
into
Bank
of
America
Corp.,
144A,
9%,
4/13/22
...........................................
United
States
7,200,000
302,118,837
f
Credit
Suisse
AG
into
Citigroup,
Inc.,
144A,
9%,
8/05/22
........
United
States
4,060,000
224,794,046
f
J.P.
Morgan
Structured
Products
BV
into
Bank
of
America
Corp.,
144A,
8.5%,
1/27/23
.................................
United
States
5,711,000
249,073,207
f
Mizuho
Markets
Cayman
LP
into
JPMorgan
Chase
&
Co.,
144A,
8%,
6/30/22
...........................................
United
States
1,620,000
223,267,826
f
National
Bank
of
Canada
into
Bank
of
America
Corp.,
144A,
8%,
6/15/22
...........................................
United
States
5,833,000
241,572,284
f
Societe
Generale
SA
into
Citigroup,
Inc.,
144A,
9%,
3/10/23
.....
United
States
4,091,000
233,207,522
f
UBS
AG
into
JPMorgan
Chase
&
Co.,
144A,
8.5%,
5/06/22
......
United
States
1,725,000
238,815,800
1,866,471,715
Biotechnology
0.7%
f
Goldman
Sachs
International
Bank
into
AbbVie,
Inc.,
144A,
9%,
1/25/23
...........................................
United
States
1,740,000
257,218,521
f
National
Bank
of
Canada
into
AbbVie,
Inc.,
144A,
8.5%,
8/12/22
..
United
States
2,197,000
286,417,838
543,636,359
Capital
Markets
0.9%
f
Barclays
Bank
plc
into
Coinbase
Global,
Inc.,
144A,
15%,
2/10/23
.
United
States
1,000,000
194,685,381
f
Credit
Suisse
AG
into
Morgan
Stanley,
144A,
8.5%,
7/06/22
.....
United
States
2,970,000
258,754,476
f
J.P.
Morgan
Structured
Products
BV
into
Goldman
Sachs
Group,
Inc.
(The),
144A,
8.5%,
3/09/23
............................
United
States
745,000
257,102,150
710,542,007
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
75
a
a
Country
Shares
a
Value
a
a
a
a
a
a
e
Equity-Linked
Securities
(continued)
Chemicals
0.4%
f
Citigroup
Global
Markets
Holdings,
Inc.
into
LyondellBasell
Industries
NV,
144A,
10%,
6/23/22
...............................
United
States
1,600,000
$
166,071,634
f
National
Bank
of
Canada
into
Air
Products
and
Chemicals,
Inc.,
144A,
8.5%,
4/13/22
.................................
United
States
590,000
150,888,554
316,960,188
Communications
Equipment
0.4%
f
Royal
Bank
of
Canada
into
Cisco
Systems,
Inc.,
144A,
8%,
12/02/22
United
States
4,700,000
261,813,117
Containers
&
Packaging
0.3%
f
Mizuho
Markets
Cayman
LP
into
International
Paper
Co.,
144A,
9%,
12/20/22
..........................................
United
States
5,376,300
246,054,111
Electric
Utilities
0.2%
f
UBS
AG
into
NextEra
Energy,
Inc.,
144A,
8%,
3/17/23
..........
United
States
1,695,000
134,910,859
Energy
Equipment
&
Services
0.3%
f
Credit
Suisse
AG
into
Halliburton
Co.,
144A,
10%,
11/15/22
......
United
States
7,000,000
208,847,428
Entertainment
0.3%
f
Morgan
Stanley
Finance
II
Ltd.
into
Walt
Disney
Co.
(The),
144A,
8%,
2/23/23
........................................
United
States
1,815,000
248,911,758
Health
Care
Equipment
&
Supplies
0.4%
f
Barclays
Bank
plc
into
Medtronic
plc,
144A,
8%,
3/10/23
........
United
States
2,600,000
277,642,673
Health
Care
Providers
&
Services
0.4%
f
Citigroup
Global
Markets
Holdings,
Inc.
into
CVS
Health
Corp.,
144A,
8%,
5/18/22
........................................
United
States
3,287,000
285,024,609
Hotels,
Restaurants
&
Leisure
0.1%
f
Mizuho
Markets
Cayman
LP
into
Las
Vegas
Sands
Corp.,
144A,
12%,
8/29/22
.......................................
United
States
1,734,000
68,287,655
Independent
Power
and
Renewable
Electricity
Producers
0.2%
f
Mizuho
Markets
Cayman
LP
into
Vistra
Corp.,
144A,
11%,
11/01/22
United
States
7,740,000
162,124,493
Industrial
Conglomerates
0.3%
f
Goldman
Sachs
International
Bank
into
Honeywell
International,
Inc.,
144A,
8.5%,
4/04/23
.................................
United
States
1,335,000
254,836,585
Insurance
0.7%
f
Barclays
Bank
plc
into
MetLife,
Inc.,
144A,
8.5%,
7/11/22
........
United
States
4,240,000
271,891,187
f
National
Bank
of
Canada
into
MetLife,
Inc.,
144A,
8.5%,
12/05/22
.
United
States
4,240,000
282,030,203
553,921,390
Internet
&
Direct
Marketing
Retail
0.7%
f
Citigroup
Global
Markets
Holdings,
Inc.
into
Bristol
Myers
Squibb
Co.,
144A,
8.5%,
12/22/22
.............................
United
States
4,400,000
279,868,106
f
Credit
Suisse
AG
into
Amazon.com,
Inc.,
144A,
8%,
2/17/23
.....
United
States
91,000
283,750,987
563,619,093
IT
Services
0.5%
f
Goldman
Sachs
International
Bank
into
Twilio,
Inc.,
144A,
12.5%,
3/03/23
...........................................
United
States
923,000
162,036,729
f
UBS
AG
into
Fidelity
National
Information
Services,
Inc.,
144A,
8.5%,
9/23/22
...........................................
United
States
2,188,000
225,440,143
387,476,872
Machinery
0.2%
f
Goldman
Sachs
International
Bank
into
Cummins,
Inc.,
144A,
8%,
1/10/23
...........................................
United
States
650,000
138,063,577
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
a
Country
Shares
a
Value
a
a
a
a
a
a
e
Equity-Linked
Securities
(continued)
Media
0.3%
f
Societe
Generale
SA
into
Comcast
Corp.,
144A,
8%,
4/17/23
....
United
States
5,300,000
$
249,082,532
Metals
&
Mining
1.4%
f
Barclays
Bank
plc
into
Newmont
Corp.,
144A,
9.5%,
6/15/22
.....
United
States
3,278,000
252,260,142
f
Citigroup
Global
Markets
Holdings,
Inc.
into
Barrick
Gold
Corp.,
144A,
9%,
10/13/22
..................................
Canada
3,225,000
69,564,481
f
Citigroup
Global
Markets
Holdings,
Inc.
into
Freeport-McMoRan,
Inc.,
144A,
12%,
10/26/22
.............................
United
States
6,337,000
248,646,422
f
Morgan
Stanley
Finance
II
Ltd.
into
Rio
Tinto
Ltd.,
144A,
10%,
6/07/22
...........................................
Australia
2,972,000
249,614,040
f
Royal
Bank
of
Canada
into
Barrick
Gold
Corp.,
144A,
10%,
4/08/22
Canada
8,910,000
214,048,395
1,034,133,480
Oil,
Gas
&
Consumable
Fuels
0.7%
f
Credit
Suisse
AG
into
Chevron
Corp.,
144A,
10%,
6/07/22
.......
United
States
2,540,000
293,979,021
f
Mizuho
Markets
Cayman
LP
into
Exxon
Mobil
Corp.,
144A,
10%,
2/21/23
...........................................
United
States
3,200,000
255,769,086
549,748,107
Pharmaceuticals
0.7%
f
J.P.
Morgan
Structured
Products
BV
into
Pfizer,
Inc.,
144A,
9.5%,
2/13/23
...........................................
United
States
4,700,000
255,184,581
f
Royal
Bank
of
Canada
into
Merck
&
Co.,
Inc.,
144A,
8.5%,
10/17/22
United
States
2,976,000
248,410,232
503,594,813
Road
&
Rail
0.4%
f
Merrill
Lynch
International
&
Co.
CV
into
Union
Pacific
Corp.,
144A,
8%,
9/21/22
........................................
United
States
1,082,000
282,884,263
Semiconductors
&
Semiconductor
Equipment
3.4%
f
BNP
Paribas
Issuance
BV
into
Broadcom,
Inc.,
144A,
10%,
8/08/22
United
States
575,000
294,036,815
f
Citigroup
Global
Markets
Holdings,
Inc.
into
Intel
Corp.,
144A,
10%,
4/06/22
...........................................
United
States
3,857,000
205,725,526
f
Citigroup
Global
Markets
Holdings,
Inc.
into
Texas
Instruments,
Inc.,
144A,
8%,
6/21/22
...................................
United
States
1,328,000
244,074,944
f
Goldman
Sachs
International
Bank
into
Intel
Corp.,
144A,
10%,
4/04/23
...........................................
United
States
3,315,000
158,077,900
f
Goldman
Sachs
International
Bank
into
Texas
Instruments,
Inc.,
144A,
8.5%,
12/14/22
.................................
United
States
1,200,000
223,648,449
f
Merrill
Lynch
International
&
Co.
CV
into
Analog
Devices,
Inc.,
144A,
9%,
4/04/23
........................................
United
States
1,551,000
251,976,860
f
Merrill
Lynch
International
&
Co.
CV
into
Broadcom,
Inc.,
144A,
9.5%,
10/13/22
.....................................
United
States
550,000
297,877,696
f
Mizuho
Markets
Cayman
LP
into
Microchip
Technology,
Inc.,
144A,
9%,
10/11/22
.......................................
United
States
1,273,500
189,830,408
f
Morgan
Stanley
Finance
II
Ltd.
into
Microchip
Technology,
Inc.,
144A,
10%,
9/12/23
..................................
United
States
2,045,000
153,269,639
f
National
Bank
of
Canada
into
Broadcom,
Inc.,
144A,
10%,
5/02/22
United
States
578,000
309,546,018
f
Royal
Bank
of
Canada
into
Intel
Corp.,
144A,
9.5%,
12/22/22
....
United
States
4,525,000
227,996,557
2,556,060,812
Software
0.5%
f
Goldman
Sachs
International
Bank
into
salesforce.com,
Inc.,
144A,
8%,
2/08/23
........................................
United
States
820,000
177,254,272
f
Mizuho
Markets
Cayman
LP
into
Workday,
Inc.,
144A,
9.5%,
6/07/22
United
States
921,000
219,306,034
396,560,306
Total
Equity-Linked
Securities
(Cost
$13,425,517,963)
...........................
13,422,511,379
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
77
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Convertible
Preferred
Stocks
2.8%
Capital
Markets
0.1%
d
KKR
&
Co.,
Inc.,
6%,
C
.................................
United
States
1,350,000
$
100,318,500
Electric
Utilities
1.8%
d
American
Electric
Power
Co.,
Inc.,
6.125%
..................
United
States
3,600,000
201,132,000
NextEra
Energy,
Inc.,
5.279%
............................
United
States
7,500,000
391,125,000
d
NextEra
Energy,
Inc.,
6.219%
............................
United
States
7,500,000
394,050,000
PG&E
Corp.,
5.5%
....................................
United
States
500,000
56,220,000
Southern
Co.
(The),
6.75%,
2019
.........................
United
States
6,300,000
344,043,000
1,386,570,000
Machinery
0.0%
†
RBC
Bearings,
Inc.,
5%,
A
...............................
United
States
200,000
19,944,000
Multi-Utilities
0.8%
Dominion
Energy,
Inc.,
7.25%,
A
..........................
United
States
3,050,000
309,727,500
DTE
Energy
Co.,
6.25%
................................
United
States
3,250,000
173,192,500
NiSource,
Inc.,
7.75%
..................................
United
States
1,167,000
138,849,660
621,769,660
Thrifts
&
Mortgage
Finance
0.1%
FNMA,
5.375%
.......................................
United
States
4,250
32,937,500
b
Total
Convertible
Preferred
Stocks
(Cost
$2,233,319,009)
........................
2,161,539,660
Preferred
Stocks
0.0%
†
Thrifts
&
Mortgage
Finance
0.0%
†
FHLMC,
8.375%,
Z
....................................
United
States
6,000,000
18,600,000
d
FNMA,
8.25%,
S
......................................
United
States
4,000,000
12,880,000
31,480,000
Total
Preferred
Stocks
(Cost
$238,139,001)
.....................................
31,480,000
Principal
Amount
*
Convertible
Bonds
0.4%
Airlines
0.1%
f
JetBlue
Airways
Corp.
,
Senior
Note
,
144A,
0.5
%
,
4/01/26
.......
United
States
52,000,000
48,642,796
Health
Care
Equipment
&
Supplies
0.1%
Haemonetics
Corp.
,
Senior
Note
,
Zero
Cpn.,
3/01/26
...........
United
States
44,559,000
37,551,610
Hotels,
Restaurants
&
Leisure
0.0%
†
DraftKings,
Inc.
,
Senior
Note
,
Zero
Cpn.,
3/15/28
..............
United
States
48,358,000
34,987,013
Interactive
Media
&
Services
0.1%
Twitter,
Inc.
,
Senior
Note
,
Zero
Cpn.,
3/15/26
.................
United
States
50,000,000
42,225,000
Leisure
Products
0.0%
†
Peloton
Interactive,
Inc.
,
Senior
Note
,
Zero
Cpn.,
2/15/26
.......
United
States
38,000,000
31,587,500
Media
0.1%
DISH
Network
Corp.
,
Senior
Note
,
2.375
%
,
3/15/24
............
United
States
85,000,000
79,793,750
Real
Estate
Management
&
Development
0.0%
†
Redfin
Corp.
,
Senior
Note
,
Zero
Cpn.,
10/15/25
...............
United
States
22,050,000
16,358,343
Total
Convertible
Bonds
(Cost
$298,281,367)
...................................
291,146,012
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
30.3%
Aerospace
&
Defense
0.3%
Boeing
Co.
(The)
,
Senior
Bond
,
3.625
%
,
2/01/31
..............
United
States
20,000,000
$
19,501,162
f
Bombardier,
Inc.
,
Senior
Bond,
144A,
7.5%,
3/15/25
.......................
Canada
33,400,000
33,610,921
Senior
Note,
144A,
7.5%,
12/01/24
......................
Canada
13,600,000
14,065,120
Raytheon
Technologies
Corp.
,
Senior
Note
,
3.125
%
,
5/04/27
....
United
States
40,000,000
40,183,473
TransDigm,
Inc.
,
Senior
Note,
6.375%,
6/15/26
..........................
United
States
21,000,000
21,216,300
f
Senior
Secured
Note,
144A,
6.25%,
3/15/26
...............
United
States
130,000,000
133,623,100
262,200,076
Airlines
0.5%
f
American
Airlines
Group,
Inc.
,
Senior
Note
,
144A,
5
%
,
6/01/22
...
United
States
109,471,000
109,596,345
f
American
Airlines
Inc/AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note,
144A,
5.5%,
4/20/26
................
United
States
132,000,000
133,175,460
Senior
Secured
Note,
144A,
5.75%,
4/20/29
...............
United
States
50,000,000
49,881,250
f
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
..............
United
States
19,212,000
18,923,820
Senior
Secured
Note,
144A,
4.625%,
4/15/29
..............
United
States
66,259,000
63,093,476
374,670,351
Auto
Components
0.5%
American
Axle
&
Manufacturing,
Inc.
,
Senior
Note
,
5
%
,
10/01/29
..
United
States
30,000,000
28,181,100
Dana,
Inc.
,
Senior
Note
,
4.25
%
,
9/01/30
....................
United
States
25,000,000
22,912,500
f
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
..........................................
United
States
95,000,000
82,718,400
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Bond,
5%,
5/31/26
.............................
United
States
30,000,000
29,827,200
Senior
Bond,
4.875%,
3/15/27
..........................
United
States
15,000,000
14,590,500
Senior
Bond,
5.25%,
4/30/31
...........................
United
States
45,000,000
42,187,500
f
Senior
Bond,
144A,
5.25%,
7/15/31
......................
United
States
40,000,000
37,038,800
f
Senior
Note,
144A,
5%,
7/15/29
........................
United
States
100,000,000
93,274,500
Tenneco,
Inc.
,
d
Senior
Bond,
5%,
7/15/26
.............................
United
States
38,500,000
37,928,467
f
Senior
Secured
Note,
144A,
5.125%,
4/15/29
..............
United
States
6,817,000
6,784,415
395,443,382
Automobiles
0.5%
Ford
Motor
Co.
,
Senior
Bond,
3.25%,
2/12/32
...........................
United
States
30,000,000
26,844,300
Senior
Note,
9%,
4/22/25
.............................
United
States
50,000,000
57,312,500
Senior
Note
,
4.346%,
12/08/26
.........................
United
States
120,000,000
120,861,000
General
Motors
Co.
,
Senior
Bond
,
5.15
%
,
4/01/38
.............
United
States
140,000,000
142,637,358
347,655,158
Banks
2.2%
Bank
of
America
Corp.
,
g
AA,
Junior
Sub.
Bond,
6.1%
to
3/17/25,
FRN
thereafter,
Perpetual
United
States
70,000,000
73,062,500
g
X,
Junior
Sub.
Bond,
6.25%
to
9/05/24,
FRN
thereafter,
Perpetual
United
States
55,000,000
56,991,003
Senior
Bond,
3.419%
to
12/20/27,
FRN
thereafter,
12/20/28
...
United
States
155,000,000
153,549,233
Senior
Note,
3.004%
to
12/20/22,
FRN
thereafter,
12/20/23
....
United
States
40,000,000
40,116,128
Barclays
plc
,
Senior
Note,
3.932%
to
5/07/24,
FRN
thereafter,
5/07/25
......
United
Kingdom
50,000,000
50,432,465
Senior
Note
,
3.65%,
3/16/25
...........................
United
Kingdom
50,000,000
50,236,283
Senior
Note
,
4.375%,
1/12/26
..........................
United
Kingdom
125,000,000
127,731,014
Citigroup,
Inc.
,
g
Junior
Sub.
Bond,
5.95%
to
1/30/23,
FRN
thereafter,
Perpetual
.
United
States
135,000,000
136,768,500
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
79
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Banks
(continued)
Citigroup,
Inc.,
(continued)
g
D,
Junior
Sub.
Bond,
5.35%
to
5/15/23,
FRN
thereafter,
Perpetual
United
States
100,000,000
$
100,250,000
g
M,
Junior
Sub.
Bond,
6.3%
to
5/15/24,
FRN
thereafter,
Perpetual
United
States
115,000,000
115,891,250
VAR,
Senior
Note,
3.07%
to
2/24/27,
FRN
thereafter,
2/24/28
..
United
States
20,000,000
19,501,320
Sub.
Bond,
4.125%,
7/25/28
...........................
United
States
130,000,000
132,226,969
g
JPMorgan
Chase
&
Co.
,
h
I,
Junior
Sub.
Bond,
FRN,
3.769%,
(3-month
USD
LIBOR
+
3.47%),
Perpetual
...................................
United
States
115,959,000
115,959,841
Q,
Junior
Sub.
Bond,
5.15%
to
5/01/23,
FRN
thereafter,
Perpetual
United
States
60,700,000
61,079,375
R,
Junior
Sub.
Bond,
6%
to
8/01/23,
FRN
thereafter,
Perpetual
.
United
States
55,000,000
55,825,000
S,
Junior
Sub.
Bond,
6.75%
to
2/01/24,
FRN
thereafter,
Perpetual
United
States
65,000,000
67,872,025
h
V,
Junior
Sub.
Bond,
FRN,
3.534%,
(3-month
USD
LIBOR
+
3.32%),
Perpetual
...................................
United
States
108,100,000
108,100,000
X,
Junior
Sub.
Bond,
6.1%
to
10/01/24,
FRN
thereafter,
Perpetual
United
States
70,000,000
71,793,750
Truist
Financial
Corp.
,
Senior
Note
,
1.887%
to
1/07/28,
FRN
thereafter
,
6/07/29
...................................
United
States
20,000,000
18,199,270
Wells
Fargo
&
Co.
,
g
S,
Junior
Sub.
Bond,
5.9%
to
6/15/24,
FRN
thereafter,
Perpetual
United
States
70,000,000
70,700,000
Senior
Note,
3.196%
to
6/17/26,
FRN
thereafter,
6/17/27
......
United
States
20,000,000
19,755,529
1,646,041,455
Beverages
0.0%
†
Anheuser-Busch
InBev
Worldwide,
Inc.
,
Senior
Bond
,
4
%
,
4/13/28
Belgium
25,000,000
25,951,007
Biotechnology
0.2%
AbbVie,
Inc.
,
Senior
Note,
3.8%,
3/15/25
............................
United
States
100,000,000
101,957,528
Senior
Note,
3.2%,
11/21/29
...........................
United
States
20,000,000
19,783,606
Senior
Note
,
3.2%,
5/14/26
...........................
United
States
25,000,000
25,099,227
146,840,361
Capital
Markets
0.2%
f
Coinbase
Global,
Inc.
,
Senior
Bond,
144A,
3.625%,
10/01/31
....................
United
States
60,000,000
51,266,700
Senior
Note,
144A,
3.375%,
10/01/28
....................
United
States
60,000,000
53,082,000
Goldman
Sachs
Group,
Inc.
(The)
,
Senior
Bond
,
2.6
%
,
2/07/30
...
United
States
20,000,000
18,575,869
Morgan
Stanley
,
Senior
Bond
,
2.699%
to
1/22/30,
FRN
thereafter
,
1/22/31
...........................................
United
States
20,000,000
18,790,960
141,715,529
Chemicals
0.6%
f
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
6.5
%
,
5/15/26
Switzerland
115,000,000
117,508,725
f
International
Flavors
&
Fragrances,
Inc.
,
Senior
Bond
,
144A,
2.3
%
,
11/01/30
..........................................
United
States
13,900,000
12,430,051
f
Olin
Corp.
,
Senior
Note
,
144A,
9.5
%
,
6/01/25
................
United
States
40,000,000
46,115,001
f
PMHC
II,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/30
...............
United
States
22,000,000
19,388,380
f
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
.....................................
United
States
21,591,000
21,086,526
f
SCIH
Salt
Holdings,
Inc.
,
Senior
Note,
144A,
6.625%,
5/01/29
.....................
United
States
125,000,000
112,461,250
Senior
Secured
Note,
144A,
4.875%,
5/01/28
..............
United
States
145,000,000
136,863,325
465,853,258
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Commercial
Services
&
Supplies
0.4%
f
ADT
Security
Corp.
(The)
,
Senior
Secured
Note
,
144A,
4.125
%
,
8/01/29
...........................................
United
States
30,000,000
$
27,901,500
f
APX
Group,
Inc.
,
Senior
Note,
144A,
5.75%,
7/15/29
......................
United
States
150,000,000
137,156,250
Senior
Secured
Note,
144A,
6.75%,
2/15/27
...............
United
States
5,000,000
5,120,100
f
Aramark
Services,
Inc.
,
Senior
Bond
,
144A,
5
%
,
2/01/28
........
United
States
27,000,000
26,238,330
f
GFL
Environmental,
Inc.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
.....
Canada
25,000,000
23,812,000
f
Madison
IAQ
LLC
,
Senior
Secured
Note
,
144A,
4.125
%
,
6/30/28
..
United
States
25,000,000
23,072,500
f
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
61,589,000
56,427,534
299,728,214
Communications
Equipment
0.5%
f
CommScope
Technologies
LLC
,
Senior
Bond,
144A,
6%,
6/15/25
........................
United
States
180,993,285
171,634,122
Senior
Note
,
144A,
5%,
3/15/27
........................
United
States
45,000,000
39,179,700
f
CommScope,
Inc.
,
Senior
Note,
144A,
8.25%,
3/01/27
......................
United
States
79,000,000
76,918,745
Senior
Note,
144A,
7.125%,
7/01/28
.....................
United
States
70,000,000
63,315,000
Senior
Secured
Note,
144A,
6%,
3/01/26
..................
United
States
40,000,000
40,512,000
391,559,567
Consumer
Finance
0.9%
Capital
One
Financial
Corp.
,
Sub.
Note,
4.2%,
10/29/25
............................
United
States
113,000,000
115,713,885
Sub.
Note,
3.75%,
7/28/26
............................
United
States
100,200,000
100,839,475
Ford
Motor
Credit
Co.
LLC
,
Senior
Note,
5.125%,
6/16/25
..........................
United
States
60,000,000
61,273,200
Senior
Note,
4.95%,
5/28/27
...........................
United
States
50,000,000
50,902,500
Senior
Note
,
4.134%,
8/04/25
..........................
United
States
149,650,000
149,664,965
Senior
Note
,
5.113%,
5/03/29
..........................
United
States
100,000,000
100,770,000
General
Motors
Financial
Co.,
Inc.
,
Senior
Note,
4.15%,
6/19/23
...........................
United
States
75,000,000
76,136,078
Senior
Note,
2.4%,
4/10/28
............................
United
States
20,000,000
18,139,920
OneMain
Finance
Corp.
,
Senior
Note
,
4
%
,
9/15/30
............
United
States
38,000,000
33,587,820
707,027,843
Containers
&
Packaging
1.0%
f
ARD
Finance
SA
,
Senior
Secured
Note
,
144A,
6.5
%
,
6/30/27
....
Luxembourg
19,000,000
17,407,610
f
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
110,000,000
101,805,550
Senior
Secured
Note,
144A,
5.25%,
4/30/25
...............
United
States
9,669,000
9,672,674
f
Mauser
Packaging
Solutions
Holding
Co.
,
Senior
Note,
144A,
7.25%,
4/15/25
......................
United
States
340,000,000
337,382,000
Senior
Secured
Note,
144A,
5.5%,
4/15/24
................
United
States
218,500,000
217,929,169
f
Pactiv
Evergreen
Group
Issuer,
Inc./Pactiv
Evergreen
Group
Issuer
LLC
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
.............
United
States
55,000,000
51,161,000
735,358,003
Diversified
Financial
Services
0.4%
f
MPH
Acquisition
Holdings
LLC
,
Senior
Note,
144A,
5.75%,
11/01/28
.....................
United
States
270,000,000
244,293,300
Senior
Secured
Note,
144A,
5.5%,
9/01/28
................
United
States
101,000,000
97,029,690
341,322,990
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
81
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Diversified
Telecommunication
Services
0.4%
f
Altice
France
SA
,
Senior
Secured
Note,
144A,
5.125%,
7/15/29
..............
France
50,000,000
$
44,880,000
Senior
Secured
Note,
144A,
5.5%,
10/15/29
...............
France
25,000,000
22,466,000
AT&T,
Inc.
,
Senior
Bond
,
4.125
%
,
2/17/26
...................
United
States
75,000,000
78,033,156
f
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond,
144A,
5.5%,
5/01/26
.......................
United
States
20,002,000
20,317,432
Senior
Bond,
144A,
5.125%,
5/01/27
.....................
United
States
72,000,000
72,201,600
f
Iliad
Holding
SASU
,
Senior
Secured
Note
,
144A,
6.5
%
,
10/15/26
..
France
40,000,000
40,160,400
278,058,588
Electric
Utilities
0.2%
Pacific
Gas
and
Electric
Co.
,
Senior
Note
,
3.15
%
,
1/01/26
.......
United
States
13,700,000
13,208,417
PG&E
Corp.
,
Senior
Secured
Note
,
5
%
,
7/01/28
..............
United
States
33,139,000
32,068,610
f
Vistra
Operations
Co.
LLC
,
Senior
Note,
144A,
5.5%,
9/01/26
.......................
United
States
35,000,000
35,229,250
Senior
Note,
144A,
5%,
7/31/27
........................
United
States
25,000,000
24,637,375
Senior
Note,
144A,
4.375%,
5/01/29
.....................
United
States
90,000,000
85,166,100
190,309,752
Electrical
Equipment
0.0%
†
f
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
United
States
17,668,000
16,145,018
Energy
Equipment
&
Services
0.6%
f
Nabors
Industries
Ltd.
,
Senior
Note
,
144A,
7.25
%
,
1/15/26
......
United
States
16,000,000
16,026,720
f
Weatherford
International
Ltd.
,
Senior
Note,
144A,
11%,
12/01/24
.......................
United
States
70,371,000
72,926,171
Senior
Note,
144A,
8.625%,
4/30/30
.....................
United
States
250,000,000
254,128,750
Senior
Secured
Note,
144A,
6.5%,
9/15/28
................
United
States
80,000,000
82,800,000
425,881,641
Entertainment
0.6%
f
Magallanes,
Inc.
,
Senior
Bond,
144A,
4.279%,
3/15/32
.....................
United
States
60,000,000
60,341,256
Senior
Note,
144A,
3.755%,
3/15/27
.....................
United
States
45,000,000
44,993,153
Netflix,
Inc.
,
Senior
Bond,
4.375%,
11/15/26
.........................
United
States
100,000,000
104,147,000
Senior
Bond,
4.875%,
4/15/28
..........................
United
States
69,300,000
72,785,790
Senior
Bond,
5.875%,
11/15/28
.........................
United
States
50,000,000
55,240,000
f
ROBLOX
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/01/30
..........
United
States
107,000,000
100,218,340
437,725,539
Equity
Real
Estate
Investment
Trusts
(REITs)
0.3%
American
Tower
Corp.
,
Senior
Bond,
3.375%,
10/15/26
.........................
United
States
30,000,000
29,645,709
Senior
Note,
4.05%,
3/15/32
...........................
United
States
30,000,000
30,107,157
f
Iron
Mountain,
Inc.
,
Senior
Note
,
144A,
4.875
%
,
9/15/27
........
United
States
80,750,000
79,980,856
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond
,
5.25
%
,
8/01/26
.....................................
United
States
10,000,000
10,246,850
Service
Properties
Trust
,
Senior
Bond
,
4.5
%
,
6/15/23
..........
United
States
53,768,000
53,224,943
203,205,515
Food
Products
0.2%
f
Lamb
Weston
Holdings,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
1/31/30
.
United
States
14,500,000
13,564,750
f
Post
Holdings,
Inc.
,
Senior
Bond,
144A,
5.625%,
1/15/28
.....................
United
States
59,800,000
58,794,762
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Food
Products
(continued)
f
Lamb
Weston
Holdings,
Inc.,
Senior
Note,
144A,
4.125%,
1/31/30
f
Post
Holdings,
Inc.,
(continued)
Senior
Bond,
144A,
4.5%,
9/15/31
.......................
United
States
55,400,000
$
49,166,946
121,526,458
Health
Care
Equipment
&
Supplies
0.5%
f
Avantor
Funding,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
11/01/29
.....
United
States
15,000,000
14,119,950
f
Mozart
Debt
Merger
Sub,
Inc.
,
Senior
Note,
144A,
5.25%,
10/01/29
.....................
United
States
233,000,000
216,911,350
Senior
Secured
Note,
144A,
3.875%,
4/01/29
..............
United
States
187,500,000
173,676,562
404,707,862
Health
Care
Providers
&
Services
6.6%
f
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.875%,
4/15/29
....................
United
States
775,000,000
762,507,000
Secured
Note,
144A,
6.125%,
4/01/30
....................
United
States
589,000,000
549,224,830
Senior
Note,
144A,
6.875%,
4/01/28
.....................
United
States
550,000,000
499,950,000
Senior
Secured
Bond,
144A,
4.75%,
2/15/31
...............
United
States
20,000,000
18,927,800
Senior
Secured
Note,
144A,
8%,
3/15/26
..................
United
States
335,000,000
349,265,975
Senior
Secured
Note,
144A,
5.625%,
3/15/27
..............
United
States
250,000,000
254,927,500
Senior
Secured
Note,
144A,
8%,
12/15/27
.................
United
States
380,000,000
403,636,000
Senior
Secured
Note,
144A,
6%,
1/15/29
..................
United
States
250,000,000
253,050,000
Senior
Secured
Note,
144A,
5.25%,
5/15/30
...............
United
States
115,000,000
110,543,750
CVS
Health
Corp.
,
Senior
Bond,
4.3%,
3/25/28
............................
United
States
125,000,000
130,975,940
Senior
Bond,
5.05%,
3/25/48
...........................
United
States
40,000,000
45,418,531
f
DaVita,
Inc.
,
Senior
Bond,
144A,
3.75%,
2/15/31
......................
United
States
125,000,000
109,528,125
Senior
Note,
144A,
4.625%,
6/01/30
.....................
United
States
195,000,000
182,364,000
HCA,
Inc.
,
Senior
Bond,
5.875%,
5/01/23
..........................
United
States
90,000,000
93,139,650
Senior
Bond,
5.625%,
9/01/28
..........................
United
States
80,000,000
86,618,800
Senior
Secured
Note
,
5%,
3/15/24
......................
United
States
114,800,000
119,055,502
Tenet
Healthcare
Corp.
,
f
Secured
Note,
144A,
6.25%,
2/01/27
.....................
United
States
35,000,000
35,969,500
Senior
Bond,
6.875%,
11/15/31
.........................
United
States
55,258,000
59,114,456
Senior
Note,
6.75%,
6/15/23
...........................
United
States
599,200,000
624,797,824
f
Senior
Note,
144A,
6.125%,
10/01/28
....................
United
States
256,155,000
260,600,570
f
Senior
Secured
Note,
144A,
4.875%,
1/01/26
..............
United
States
5,000,000
5,049,800
f
Senior
Secured
Note,
144A,
4.25%,
6/01/29
...............
United
States
11,000,000
10,560,660
f
Senior
Secured
Note,
144A,
4.375%,
1/15/30
..............
United
States
16,000,000
15,379,440
4,980,605,653
Health
Care
Technology
0.2%
f,i
Multiplan
Corp.
,
144A,
PIK,
6
%
,
10/15/27
...................
United
States
185,000,000
147,907,500
Hotels,
Restaurants
&
Leisure
1.3%
f
Boyd
Gaming
Corp.
,
Senior
Bond
,
144A,
4.75
%
,
6/15/31
........
United
States
25,000,000
24,135,875
f
Caesars
Entertainment,
Inc.
,
Senior
Note,
144A,
8.125%,
7/01/27
.....................
United
States
35,000,000
37,548,700
Senior
Note,
144A,
4.625%,
10/15/29
....................
United
States
85,000,000
79,581,250
Senior
Secured
Note,
144A,
6.25%,
7/01/25
...............
United
States
47,000,000
48,584,840
f
Everi
Holdings,
Inc.
,
Senior
Note
,
144A,
5
%
,
7/15/29
...........
United
States
20,000,000
18,971,500
f
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note,
144A,
6.75%,
1/15/30
......................
United
States
105,000,000
96,729,675
Senior
Secured
Note,
144A,
4.625%,
1/15/29
..............
United
States
40,000,000
37,980,800
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
83
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
f
Everi
Holdings,
Inc.,
Senior
Note,
144A,
5%,
7/15/29
f
Penn
National
Gaming,
Inc.
,
Senior
Note,
144A,
5.625%,
1/15/27
.....................
United
States
20,000,000
$
19,857,300
Senior
Note,
144A,
4.125%,
7/01/29
.....................
United
States
65,000,000
58,259,500
f
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp.
,
Senior
Bond,
144A,
5.5%,
3/01/25
.......................
United
States
242,000,000
242,338,800
Senior
Note
,
144A,
4.25%,
5/30/23
......................
United
States
123,000,000
122,860,395
Senior
Note
,
144A,
5.25%,
5/15/27
......................
United
States
168,222,000
163,081,136
f
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Bond
,
144A,
5.125
%
,
10/01/29
..........................
United
States
25,000,000
23,572,500
j
Yum!
Brands,
Inc.
,
Senior
Bond
,
5.375
%
,
4/01/32
.............
United
States
37,500,000
37,640,625
1,011,142,896
Household
Durables
0.0%
†
f
Shea
Homes
LP
/
Shea
Homes
Funding
Corp.
,
Senior
Note,
144A,
4.75%,
2/15/28
......................
United
States
25,000,000
23,570,875
Senior
Note,
144A,
4.75%,
4/01/29
......................
United
States
12,963,000
12,146,331
35,717,206
Household
Products
0.1%
f
Energizer
Holdings,
Inc.
,
Senior
Note,
144A,
6.5%,
12/31/27
......................
United
States
20,000,000
19,840,200
Senior
Note,
144A,
4.75%,
6/15/28
......................
United
States
20,000,000
18,204,600
Senior
Note,
144A,
4.375%,
3/31/29
.....................
United
States
20,000,000
17,532,000
55,576,800
Independent
Power
and
Renewable
Electricity
Producers
0.2%
f
Calpine
Corp.
,
Senior
Note,
144A,
5.125%,
3/15/28
.....................
United
States
56,500,000
53,924,448
Senior
Secured
Bond,
144A,
5.25%,
6/01/26
...............
United
States
4,946,000
4,977,209
f,g
Vistra
Corp.
,
Junior
Sub.
Bond
,
144A,
7%
to
12/15/26,
FRN
thereafter
,
Perpetual
.................................
United
States
100,000,000
97,530,500
156,432,157
Insurance
0.1%
Prudential
Financial,
Inc.
,
Junior
Sub.
Bond
,
5.7%
to
9/15/28,
FRN
thereafter
,
9/15/48
...................................
United
States
65,000,000
66,555,451
Interactive
Media
&
Services
0.0%
†
f
ZipRecruiter,
Inc.
,
Senior
Note
,
144A,
5
%
,
1/15/30
.............
United
States
42,000,000
41,061,720
Internet
&
Direct
Marketing
Retail
0.1%
f
Match
Group
Holdings
II
LLC
,
Senior
Bond,
144A,
4.125%,
8/01/30
.....................
United
States
45,000,000
42,260,625
Senior
Note,
144A,
3.625%,
10/01/31
....................
United
States
33,730,000
30,222,080
72,482,705
IT
Services
0.0%
†
Twilio,
Inc.
,
Senior
Note
,
3.625
%
,
3/15/29
...................
United
States
40,000,000
37,753,400
Machinery
0.1%
f
Roller
Bearing
Co.
of
America,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
10/15/29
..........................................
United
States
35,000,000
32,681,250
f
TK
Elevator
U.S.
Newco,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
7/15/27
...........................................
Germany
43,000,000
42,579,890
75,261,140
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
84
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Media
2.6%
f
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
65,000,000
$
65,413,725
Senior
Note,
144A,
7.5%,
6/01/29
.......................
United
States
100,000,000
99,903,000
CSC
Holdings
LLC
,
Senior
Bond,
5.25%,
6/01/24
...........................
United
States
4,526,000
4,539,578
f
Senior
Bond,
144A,
5.5%,
4/15/27
.......................
United
States
227,000,000
225,425,755
Senior
Note,
5.875%,
9/15/22
..........................
United
States
30,255,000
30,530,472
f
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Secured
Note
,
144A,
5.375
%
,
8/15/26
...........................
United
States
152,000,000
59,088,480
f
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
....................
United
States
74,500,000
73,388,088
DISH
DBS
Corp.
,
Senior
Note,
5.875%,
7/15/22
..........................
United
States
383,500,000
385,893,040
Senior
Note,
5%,
3/15/23
.............................
United
States
300,000,000
301,446,000
Senior
Note,
5.875%,
11/15/24
.........................
United
States
180,000,000
179,795,700
Senior
Note,
7.75%,
7/01/26
...........................
United
States
70,000,000
69,632,150
Senior
Note,
7.375%,
7/01/28
..........................
United
States
35,000,000
33,201,875
f
Senior
Secured
Note,
144A,
5.25%,
12/01/26
..............
United
States
75,000,000
71,578,125
f
Stagwell
Global
LLC
,
Senior
Note
,
144A,
5.625
%
,
8/15/29
.......
United
States
45,000,000
42,511,500
f
Univision
Communications,
Inc.
,
Senior
Secured
Note,
144A,
5.125%,
2/15/25
..............
United
States
217,220,000
217,690,281
Senior
Secured
Note,
144A,
9.5%,
5/01/25
................
United
States
55,000,000
57,825,625
Senior
Secured
Note,
144A,
6.625%,
6/01/27
..............
United
States
30,000,000
31,459,950
1,949,323,344
Metals
&
Mining
0.7%
ArcelorMittal
SA
,
Senior
Bond
,
4.25
%
,
7/16/29
...............
Luxembourg
20,000,000
20,335,445
f
Cleveland-Cliffs,
Inc.
,
Senior
Bond,
144A,
4.875%,
3/01/31
.....................
United
States
30,000,000
29,726,700
Senior
Secured
Note,
144A,
6.75%,
3/15/26
...............
United
States
50,000,000
52,579,500
f
First
Quantum
Minerals
Ltd.
,
Senior
Note,
144A,
7.25%,
4/01/23
......................
Zambia
12,400,000
12,394,172
Senior
Note,
144A,
6.5%,
3/01/24
.......................
Zambia
25,629,000
25,828,650
Senior
Note,
144A,
7.5%,
4/01/25
.......................
Zambia
77,598,000
78,858,191
f
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond,
144A,
4.375%,
4/01/31
.....................
Australia
125,000,000
118,445,000
Senior
Note,
144A,
5.125%,
5/15/24
.....................
Australia
60,540,000
61,800,746
Freeport-McMoRan,
Inc.
,
Senior
Bond,
5.25%,
9/01/29
...........................
United
States
25,000,000
26,233,000
Senior
Bond,
4.625%,
8/01/30
..........................
United
States
20,000,000
20,473,000
Senior
Note,
3.875%,
3/15/23
..........................
United
States
62,636,000
63,397,967
510,072,371
Oil,
Gas
&
Consumable
Fuels
1.1%
f
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note,
144A,
11%,
4/15/25
........................
United
States
270,000,000
280,449,000
Senior
Note,
144A,
8.125%,
1/15/27
.....................
United
States
95,000,000
88,461,150
Senior
Secured
Note,
144A,
9.25%,
7/15/24
...............
United
States
111,402,000
119,731,527
f
CITGO
Petroleum
Corp.
,
Senior
Secured
Note
,
144A,
7
%
,
6/15/25
United
States
23,324,000
23,495,665
Civitas
Resources,
Inc.
,
Senior
Note
,
7.5
%
,
4/30/26
...........
United
States
32,713,617
32,729,647
Occidental
Petroleum
Corp.
,
Senior
Bond,
6.125%,
1/01/31
..........................
United
States
30,000,000
33,796,650
Senior
Note,
8%,
7/15/25
.............................
United
States
50,000,000
56,205,000
Senior
Note,
5.5%,
12/01/25
...........................
United
States
30,000,000
31,617,000
Senior
Note,
6.375%,
9/01/28
..........................
United
States
60,000,000
67,645,800
Senior
Note
,
6.625%,
9/01/30
..........................
United
States
40,000,000
45,950,000
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
85
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
Civitas
Resources,
Inc.,
Senior
Note,
7.5%,
4/30/26
PBF
Holding
Co.
LLC
/
PBF
Finance
Corp.
,
Senior
Note,
6%,
2/15/28
.............................
United
States
37,000,000
$
29,804,055
f
Senior
Secured
Note,
144A,
9.25%,
5/15/25
...............
United
States
48,430,000
49,948,765
859,834,259
Personal
Products
0.0%
†
f
BellRing
Brands,
Inc.
,
Senior
Note
,
144A,
7
%
,
3/15/30
.........
United
States
30,000,000
30,675,000
Pharmaceuticals
3.5%
f
Bausch
Health
Americas,
Inc.
,
Senior
Note,
144A,
9.25%,
4/01/26
......................
United
States
285,335,000
292,534,002
Senior
Note,
144A,
8.5%,
1/31/27
.......................
United
States
630,810,000
629,737,623
f
Bausch
Health
Cos.,
Inc.
,
Senior
Bond,
144A,
6.125%,
4/15/25
.....................
United
States
211,251,000
213,231,478
Senior
Note,
144A,
9%,
12/15/25
.......................
United
States
183,000,000
189,789,300
Senior
Note,
144A,
7%,
1/15/28
........................
United
States
40,000,000
35,875,000
Senior
Note,
144A,
5%,
1/30/28
........................
United
States
180,000,000
148,553,100
Senior
Note,
144A,
5%,
2/15/29
........................
United
States
57,000,000
44,473,110
Senior
Note,
144A,
6.25%,
2/15/29
......................
United
States
81,000,000
66,550,005
Senior
Secured
Note,
144A,
5.5%,
11/01/25
...............
United
States
134,000,000
132,985,620
Senior
Secured
Note,
144A,
6.125%,
2/01/27
..............
United
States
130,000,000
130,980,850
Senior
Secured
Note,
144A,
5.75%,
8/15/27
...............
United
States
20,000,000
19,744,000
Senior
Secured
Note,
144A,
4.875%,
6/01/28
..............
United
States
110,000,000
105,474,050
f
Bayer
US
Finance
II
LLC
,
Senior
Note
,
144A,
4.25
%
,
12/15/25
...
Germany
65,000,000
66,167,836
f
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco,
Inc.
,
Secured
Note,
144A,
9.5%,
7/31/27
......................
United
States
135,712,000
119,222,992
Senior
Note,
144A,
6%,
6/30/28
........................
United
States
150,739,000
85,732,806
Senior
Secured
Note,
144A,
5.875%,
10/15/24
.............
United
States
47,500,000
44,826,225
f
Endo
Luxembourg
Finance
Co.
I
SARL
/
Endo
US,
Inc.
,
Senior
Secured
Note
,
144A,
6.125
%
,
4/01/29
....................
United
States
63,355,000
57,887,781
f
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/01/27
United
States
143,344,000
134,000,838
Royalty
Pharma
plc
,
Senior
Note
,
2.2
%
,
9/02/30
..............
United
States
20,000,000
17,516,116
Utah
Acquisition
Sub,
Inc.
,
Senior
Note
,
3.95
%
,
6/15/26
.........
United
States
110,000,000
109,313,414
2,644,596,146
Road
&
Rail
0.1%
f
Ashtead
Capital,
Inc.
,
Senior
Note,
144A,
4%,
5/01/28
........................
United
Kingdom
15,000,000
14,811,566
Senior
Note
,
144A,
4.375%,
8/15/27
.....................
United
Kingdom
34,500,000
34,999,042
49,810,608
Semiconductors
&
Semiconductor
Equipment
0.2%
f
Broadcom,
Inc.
,
Senior
Bond,
144A,
4%,
4/15/29
........................
United
States
25,000,000
24,987,750
Senior
Bond,
144A,
2.45%,
2/15/31
......................
United
States
20,000,000
17,872,027
Senior
Bond,
144A,
4.15%,
4/15/32
......................
United
States
35,000,000
34,923,350
Microchip
Technology,
Inc.
,
Senior
Secured
Note
,
4.333
%
,
6/01/23
United
States
69,000,000
70,125,545
147,908,672
Software
0.2%
f
Minerva
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/30
.....
United
States
50,000,000
48,569,000
f
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
........
United
States
75,000,000
68,209,125
Workday,
Inc.
,
Senior
Bond
,
3.8
%
,
4/01/32
..................
United
States
35,000,000
34,976,642
151,754,767
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
86
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Specialty
Retail
0.2%
Bath
&
Body
Works,
Inc.
,
Senior
Bond
,
6.875
%
,
11/01/35
.......
United
States
50,000,000
$
51,595,250
f
Gap,
Inc.
(The)
,
Senior
Bond,
144A,
3.875%,
10/01/31
....................
United
States
37,000,000
32,302,850
Senior
Note,
144A,
3.625%,
10/01/29
....................
United
States
15,000,000
13,394,625
f
Michaels
Cos.,
Inc.
(The)
,
Senior
Note,
144A,
7.875%,
5/01/29
.....................
United
States
10,000,000
8,574,950
Senior
Secured
Note,
144A,
5.25%,
5/01/28
...............
United
States
50,000,000
45,969,000
151,836,675
Technology
Hardware,
Storage
&
Peripherals
0.0%
†
Seagate
HDD
Cayman
,
Senior
Bond
,
3.375
%
,
7/15/31
.........
United
States
7,000,000
6,238,190
Tobacco
0.3%
BAT
Capital
Corp.
,
Senior
Note,
3.222%,
8/15/24
..........................
United
Kingdom
78,500,000
78,530,499
Senior
Note,
3.557%,
8/15/27
..........................
United
Kingdom
190,000,000
185,243,449
263,773,948
Trading
Companies
&
Distributors
0.4%
United
Rentals
North
America,
Inc.
,
Secured
Note,
3.875%,
11/15/27
........................
United
States
20,000,000
19,837,200
Senior
Bond,
4.875%,
1/15/28
..........................
United
States
110,000,000
111,859,000
Senior
Bond,
4%,
7/15/30
.............................
United
States
61,623,000
59,045,002
Senior
Bond,
3.875%,
2/15/31
..........................
United
States
57,035,000
53,845,603
f
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.125
%
,
6/15/25
...
United
States
30,000,000
31,242,300
275,829,105
Wireless
Telecommunication
Services
1.3%
Sprint
Communications,
Inc.
,
Senior
Note
,
6
%
,
11/15/22
........
United
States
347,700,000
355,954,398
Sprint
Corp.
,
Senior
Note,
7.875%,
9/15/23
..........................
United
States
187,350,000
199,292,626
Senior
Note,
7.125%,
6/15/24
..........................
United
States
190,650,000
204,719,970
Senior
Note,
7.625%,
3/01/26
..........................
United
States
86,300,000
97,502,603
f
Sprint
Spectrum
Co.
LLC
/
Sprint
Spectrum
Co.
II
LLC
/
Sprint
Spectrum
Co.
III
LLC
,
Senior
Secured
Note
,
144A,
5.152
%
,
3/20/28
...........................................
United
States
90,000,000
94,855,449
T-Mobile
USA,
Inc.
,
Senior
Secured
Note
,
3.875
%
,
4/15/30
......
United
States
20,000,000
20,105,244
972,430,290
Total
Corporate
Bonds
(Cost
$22,947,585,218)
..................................
23,053,507,570
h,k
Senior
Floating
Rate
Interests
0.2%
Commercial
Services
&
Supplies
0.0%
†
APX
Group,
Inc.
,
Initial
Term
Loan
,
4.005
%
,
(
1-month
USD
LIBOR
+
3.5%;
3-month
USD
LIBOR
+
2.5%
),
7/10/28
...............
United
States
19,900,000
19,658,414
Diversified
Financial
Services
0.1%
MPH
Acquisition
Holdings
LLC
,
Initial
Term
Loan
,
4.758
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
9/01/28
..........................
United
States
33,915,000
33,031,175
Media
0.1%
Diamond
Sports
Group
LLC
,
First
Lien,
CME
Term
Loan
,
9
%
,
(
1-month
SOFR
+
8
%
),
5/25/26
.........................
United
States
22,057,094
22,435,483
DIRECTV
Financing
LLC
,
Closing
Date
Term
Loan
,
5.75
%
,
(
1-month
USD
LIBOR
+
5
%
),
8/02/27
............................
United
States
19,100,000
19,103,724
41,539,207
a
a
a
a
a
a
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
87
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
h,k
Senior
Floating
Rate
Interests
(continued)
Pharmaceuticals
0.0%
†
Jazz
Pharmaceuticals
plc
,
Initial
Dollar
Term
Loan
,
4
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
5/05/28
...........................
United
States
19,850,000
$
19,801,665
Specialty
Retail
0.0%
†
Belk,
Inc.
,
First
Lien,
First-Out
Term
Loan,
8.5%,
(3-month
USD
LIBOR
+
7.5%),
7/31/25
......................................
United
States
4,913,316
4,890,789
First
Lien,
Second-Out
Term
Loan,
13%,
(3-month
USD
LIBOR
+
5%),
7/31/25
.......................................
United
States
30,840,062
20,135,939
25,026,728
a
a
a
a
a
a
Total
Senior
Floating
Rate
Interests
(Cost
$134,278,421)
.........................
139,057,189
U.S.
Government
and
Agency
Securities
8.9%
U.S.
Treasury
Notes
,
0.25%,
3/15/24
.....................................
United
States
750,000,000
720,615,233
2.25%,
3/31/24
.....................................
United
States
750,000,000
749,018,557
0.25%,
6/15/24
.....................................
United
States
500,000,000
476,972,655
1.75%,
3/15/25
.....................................
United
States
2,250,000,000
2,202,539,062
0.5%,
3/31/25
......................................
United
States
750,000,000
706,699,215
0.75%,
5/31/26
.....................................
United
States
750,000,000
697,690,433
0.875%,
6/30/26
.....................................
United
States
500,000,000
467,080,080
1.875%,
2/28/29
.....................................
United
States
250,000,000
241,386,720
1.875%,
2/15/32
.....................................
United
States
500,000,000
480,234,375
Total
U.S.
Government
and
Agency
Securities
(Cost
$6,932,020,930)
..............
6,742,236,330
Asset-Backed
Securities
0.1%
Airlines
0.1%
United
Airlines
Pass-Through
Trust
,
2020-1
,
A
,
5.875
%
,
10/15/27
.
.
United
States
48,128,896
49,898,124
Total
Asset-Backed
Securities
(Cost
$48,128,896)
...............................
49,898,124
Mortgage-Backed
Securities
0.0%
†
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
0.0%
†
FNMA,
30
Year,
4%,
8/01/49
.............................
United
States
32,347,316
33,387,522
Total
Mortgage-Backed
Securities
(Cost
$34,267,938)
............................
33,387,522
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
f
Chesapeake
Energy
Corp.,
Escrow
Account,
144A
............
United
States
25,000,000
25,849,000
Total
Escrows
and
Litigation
Trusts
(Cost
$25,000,000)
..........................
25,849,000
Total
Long
Term
Investments
(Cost
$70,098,122,144)
............................
74,175,234,481
a
Short
Term
Investments
2.7%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
2.6%
l,m
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
2,012,325,542
2,012,325,542
Total
Money
Market
Funds
(Cost
$2,012,325,542)
................................
2,012,325,542
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
Short
Term
Investments
(continued)
a
a
Country
Shares
a
Value
a
n
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
a
a
a
a
a
Money
Market
Funds
0.1%
l,m
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
90,336,000
$
90,336,000
Principal
Amount
*
Repurchase
Agreements
0.0%
†
o
Joint
Repurchase
Agreement,
BNP
Paribas
SA,
0.28%,
4/01/22
(Maturity
Value
$22,783,627)
Collateralized
by
U.S.
Treasury
Bond,
6%,
2/15/26;
U.S.
Treasury
Bonds,
Strips,
8/15/24
-
2/15/26;
U.S.
Treasury
Notes,
0.125%
-
2.875%,
10/31/22
-
1/31/27;
and
U.S.
Treasury
Notes,
Index
Linked,
0.125%
-
0.625%,
1/15/24
-
7/15/26
(valued
at
$23,239,121)
.......................................
22,783,450
22,783,450
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$113,119,450)
..........................................................
113,119,450
Total
Short
Term
Investments
(Cost
$2,125,444,992
)
.............................
2,125,444,992
a
Total
Investments
(Cost
$72,223,567,136)
100.3%
...............................
$76,300,679,473
Options
Written
(0.1)%
.......................................................
(68,486,000)
Other
Assets,
less
Liabilities
(0.2)%
...........................................
(262,205,324)
Net
Assets
100.0%
...........................................................
$75,969,988,149
Number
of
Contracts
Notional
Amount
#
p
Options
Written
(0.1)%
Calls
-
Exchange-Traded
Equity
Options
3M
Co.,
June
Strike
Price
$160.00,
Expires
6/17/22
............
5,000
74,440,000
(1,050,000)
3M
Co.,
June
Strike
Price
$165.00,
Expires
6/17/22
............
5,000
74,440,000
(600,000)
AbbVie,
Inc.,
April
Strike
Price
$150.00,
Expires
4/14/22
........
5,000
81,055,000
(6,450,000)
AbbVie,
Inc.,
May
Strike
Price
$160.00,
Expires
5/20/22
........
5,000
81,055,000
(2,825,000)
AbbVie,
Inc.,
June
Strike
Price
$170.00,
Expires
6/17/22
........
5,000
81,055,000
(1,380,000)
Amgen,
Inc.,
April
Strike
Price
$240.00,
Expires
4/14/22
........
5,000
120,910,000
(2,600,000)
Amgen,
Inc.,
June
Strike
Price
$240.00,
Expires
6/17/22
........
5,000
120,910,000
(4,900,000)
Amgen,
Inc.,
June
Strike
Price
$250.00,
Expires
6/17/22
........
5,000
120,910,000
(2,550,000)
Chevron
Corp.,
June
Strike
Price
$200.00,
Expires
6/17/22
......
10,000
162,830,000
(740,000)
Constellation
Energy
Corp.,
May
Strike
Price
$60.00,
Expires
5/20/22
...........................................
10,000
56,250,000
(1,600,000)
Exxon
Mobil
Corp.,
May
Strike
Price
$110.00,
Expires
5/20/22
....
10,000
82,590,000
(100,000)
Honeywell
International,
Inc.,
April
Strike
Price
$200.00,
Expires
4/14/22
...........................................
5,000
97,290,000
(525,000)
Intel
Corp.,
May
Strike
Price
$52.50,
Expires
5/20/22
...........
20,000
99,120,000
(2,360,000)
Intel
Corp.,
May
Strike
Price
$55.00,
Expires
5/20/22
...........
20,000
99,120,000
(1,180,000)
International
Business
Machines
Corp.,
May
Strike
Price
$135.00,
Expires
5/20/22
.....................................
10,000
130,020,000
(2,440,000)
International
Business
Machines
Corp.,
June
Strike
Price
$140.00,
Expires
6/17/22
.....................................
10,000
130,020,000
(1,500,000)
Johnson
&
Johnson,
May
Strike
Price
$175.00,
Expires
5/20/22
...
5,000
88,615,000
(3,000,000)
Johnson
&
Johnson,
May
Strike
Price
$185.00,
Expires
5/20/22
...
5,000
88,615,000
(685,000)
Merck
&
Co.,
Inc.,
April
Strike
Price
$80.00,
Expires
4/14/22
.....
10,000
82,050,000
(2,770,000)
Merck
&
Co.,
Inc.,
May
Strike
Price
$82.50,
Expires
5/20/22
.....
10,000
82,050,000
(2,320,000)
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
89
See
Abbreviations
on
page
142
.
a
a
a
Number
of
Contracts
Notional
Amount
#
a
Value
a
a
a
a
a
a
p
Options
Written
(continued)
Calls
-
Exchange-Traded
(continued)
Equity
Options
(continued)
Morgan
Stanley,
May
Strike
Price
$110.00,
Expires
5/20/22
......
10,000
87,400,000
$
(80,000)
PepsiCo,
Inc.,
April
Strike
Price
$185.00,
Expires
4/14/22
.......
10,000
167,380,000
(100,000)
Pfizer,
Inc.,
May
Strike
Price
$57.50,
Expires
5/20/22
...........
10,000
51,770,000
(500,000)
Philip
Morris
International,
Inc.,
April
Strike
Price
$100.00,
Expires
4/14/22
...........................................
10,000
93,940,000
(90,000)
Texas
Instruments,
Inc.,
May
Strike
Price
$200.00,
Expires
5/20/22
5,000
91,740,000
(965,000)
Texas
Instruments,
Inc.,
June
Strike
Price
$210.00,
Expires
6/17/22
5,000
91,740,000
(715,000)
Walmart,
Inc.,
April
Strike
Price
$145.00,
Expires
4/14/22
.......
10,000
148,920,000
(4,950,000)
Walt
Disney
Co.
(The),
April
Strike
Price
$160.00,
Expires
4/14/22
.
5,500
75,438,000
(33,000)
(49,008,000)
Puts
-
Exchange-Traded
Equity
Options
Alphabet,
Inc.,
May
Strike
Price
$2,200.00,
Expires
5/20/22
......
1,000
278,135,000
(763,000)
Analog
Devices,
Inc.,
April
Strike
Price
$150.00,
Expires
4/14/22
..
5,000
82,590,000
(330,000)
Goldman
Sachs
Group,
Inc.
(The),
April
Strike
Price
$285.00,
Expires
4/14/22
.....................................
5,000
165,050,000
(300,000)
Goldman
Sachs
Group,
Inc.
(The),
May
Strike
Price
$300.00,
Expires
5/20/22
...........................................
5,000
165,050,000
(2,445,000)
Home
Depot,
Inc.
(The),
May
Strike
Price
$285.00,
Expires
5/20/22
10,000
299,330,000
(7,150,000)
McDonald's
Corp.,
May
Strike
Price
$210.00,
Expires
5/20/22
....
5,000
123,640,000
(365,000)
Morgan
Stanley,
April
Strike
Price
$80.00,
Expires
4/14/22
.......
10,000
87,400,000
(390,000)
Morgan
Stanley,
April
Strike
Price
$85.00,
Expires
4/14/22
.......
10,000
87,400,000
(1,450,000)
NVIDIA
Corp.,
April
Strike
Price
$190.00,
Expires
4/14/22
.......
5,000
136,430,000
(55,000)
salesforce.com,
Inc.,
May
Strike
Price
$170.00,
Expires
5/20/22
..
10,000
212,320,000
(1,200,000)
Texas
Instruments,
Inc.,
April
Strike
Price
$155.00,
Expires
4/14/22
10,000
183,480,000
(100,000)
Texas
Instruments,
Inc.,
June
Strike
Price
$160.00,
Expires
6/17/22
10,000
183,480,000
(2,900,000)
Twilio,
Inc.,
April
Strike
Price
$125.00,
Expires
4/14/22
.........
5,000
82,405,000
(120,000)
Workday,
Inc.,
May
Strike
Price
$200.00,
Expires
5/20/22
.......
10,000
239,460,000
(1,910,000)
(19,478,000)
Total
Options
Written
(Premiums
received
$74,928,235)
..........................
$
(68,486,000)
#
Notional
amount
is
the
number
of
units
specified
in
the
contract,
and
can
include
currency
units,
bushels,
shares,
pounds,
barrels
or
other
units.
Currency
units
are
stated
in
U.S.
dollars
unless
otherwise
indicated.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
A
portion
or
all
of
the
security
is
held
in
connection
with
written
option
contracts
open
at
period
end.
b
Non-income
producing.
c
See
Note
12
regarding
holdings
of
5%
voting
securities.
d
A
portion
or
all
of
the
security
is
on
loan
at
March
31,
2022.
See
Note
1(g).
e
See
Note
1(f)
regarding
equity-linked
securities.
f
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
March
31,
2022,
the
aggregate
value
of
these
securities
was
$28,494,394,949,
representing
37.5%
of
net
assets.
g
Perpetual
security
with
no
stated
maturity
date.
h
The
coupon
rate
shown
represents
the
rate
at
period
end.
i
Income
may
be
received
in
additional
securities
and/or
cash.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
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Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
j
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(d).
k
See
Note
1(h)
regarding
senior
floating
rate
interests.
l
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
m
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
n
See
Note
1(g)
regarding
securities
on
loan.
o
See
Note
1(c)
regarding
joint
repurchase
agreement.
p
See
Note
1(e)
regarding
written
options.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
91
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
Year
Ended
September
30,
2018
a
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$5.89
$6.09
$6.07
$5.86
$5.89
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.03
0.05
0.10
0.14
0.01
Net
realized
and
unrealized
gains
(losses)
...........
(0.30)
(0.12)
0.08
0.25
(0.02)
Total
from
investment
operations
....................
(0.27)
(0.07)
0.18
0.39
(0.01)
Less
distributions
from:
Net
investment
income
..........................
(0.07)
(0.13)
(0.16)
(0.18)
(0.02)
Net
asset
value,
end
of
period
......................
$5.55
$5.89
$6.09
$6.07
$5.86
Total
return
d
...................................
(4.70)%
(1.15)%
3.01%
6.70%
(0.23)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
......
0.87%
0.87%
0.89%
0.89%
0.86%
Expenses
net
of
waiver
and
payments
by
affiliates
f
......
0.87%
g
0.87%
g
0.88%
0.88%
0.86%
g
Net
investment
income
...........................
1.18%
0.79%
1.58%
2.36%
2.40%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$844,409
$1,020,574
$1,097,545
$336,646
$4,472
Portfolio
turnover
rate
............................
21.54%
89.16%
65.54%
41.34%
44.67%
a
For
the
period
September
10,
2018
(effective
date)
to
September
30,
2018.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$5.90
$6.09
$6.07
$5.85
$6.13
$6.35
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.05
0.10
0.15
0.15
0.13
Net
realized
and
unrealized
gains
(losses)
(0.32)
(0.10)
0.09
0.25
(0.25)
(0.16)
Total
from
investment
operations
........
(0.28)
(0.05)
0.19
0.40
(0.10)
(0.03)
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.14)
(0.17)
(0.18)
(0.18)
(0.19)
Net
asset
value,
end
of
period
..........
$5.55
$5.90
$6.09
$6.07
$5.85
$6.13
Total
return
c
.......................
(4.81)%
(0.89)%
3.09%
6.94%
(1.60)%
(0.45)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.76%
0.77%
0.78%
0.79%
0.76%
0.79%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.76%
f
0.76%
0.77%
0.78%
0.76%
f
0.79%
f
Net
investment
income
...............
1.28%
0.90%
1.69%
2.46%
2.50%
2.17%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,863,833
$2,104,978
$2,661,888
$2,885,194
$3,099,373
$3,581,769
Portfolio
turnover
rate
................
21.54%
89.16%
65.54%
41.34%
44.67%
86.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
93
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$5.85
$6.04
$6.03
$5.81
$6.08
$6.30
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.02
0.02
0.07
0.12
0.12
0.10
Net
realized
and
unrealized
gains
(losses)
(0.31)
(0.10)
0.08
0.25
(0.24)
(0.16)
Total
from
investment
operations
........
(0.29)
(0.08)
0.15
0.37
(0.12)
(0.06)
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.11)
(0.14)
(0.15)
(0.15)
(0.16)
Net
asset
value,
end
of
period
..........
$5.51
$5.85
$6.04
$6.03
$5.81
$6.08
Total
return
c
.......................
(4.93)%
(1.41)%
2.43%
6.45%
(1.94)%
(0.96)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.27%
1.27%
1.29%
1.29%
1.26%
1.29%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.27%
f
1.27%
f
1.28%
1.28%
1.26%
f
1.29%
f
Net
investment
income
...............
0.78%
0.39%
1.18%
1.96%
2.00%
1.67%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$154,961
$196,643
$354,483
$389,021
$571,525
$797,394
Portfolio
turnover
rate
................
21.54%
89.16%
65.54%
41.34%
44.67%
86.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$5.89
$6.09
$6.07
$5.85
$6.12
$6.34
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.03
0.03
0.08
0.13
0.13
0.11
Net
realized
and
unrealized
gains
(losses)
(0.31)
(0.11)
0.08
0.25
(0.24)
(0.16)
Total
from
investment
operations
........
(0.28)
(0.08)
0.16
0.38
(0.11)
(0.05)
Less
distributions
from:
Net
investment
income
..............
(0.06)
(0.12)
(0.14)
(0.16)
(0.16)
(0.17)
Net
asset
value,
end
of
period
..........
$5.55
$5.89
$6.09
$6.07
$5.85
$6.12
Total
return
c
.......................
(4.82)%
(1.41)%
2.73%
6.58%
(1.78)%
(0.81)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.12%
1.11%
1.13%
1.14%
1.11%
1.13%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.12%
f
1.11%
f
1.12%
1.13%
1.11%
f
1.13%
f
Net
investment
income
...............
0.93%
0.55%
1.34%
2.11%
2.15%
1.83%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$17,131
$19,513
$27,746
$32,906
$31,144
$38,363
Portfolio
turnover
rate
................
21.54%
89.16%
65.54%
41.34%
44.67%
86.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
95
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$5.92
$6.12
$6.10
$5.87
$6.15
$6.37
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.07
0.12
0.16
0.17
0.15
Net
realized
and
unrealized
gains
(losses)
(0.30)
(0.12)
0.08
0.27
(0.25)
(0.16)
Total
from
investment
operations
........
(0.26)
(0.05)
0.20
0.43
(0.08)
(0.01)
Less
distributions
from:
Net
investment
income
..............
(0.08)
(0.15)
(0.18)
(0.20)
(0.20)
(0.21)
Net
asset
value,
end
of
period
..........
$5.58
$5.92
$6.12
$6.10
$5.87
$6.15
Total
return
c
.......................
(4.50)%
(0.80)%
3.34%
7.39%
(1.33)%
(0.16)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.52%
0.53%
0.54%
0.51%
0.49%
0.48%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.51%
0.51%
0.52%
0.50%
0.48%
0.48%
f
Net
investment
income
...............
1.54%
1.15%
1.96%
2.74%
2.78%
2.48%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$247,377
$304,650
$361,791
$573,957
$694,813
$446,174
Portfolio
turnover
rate
................
21.54%
89.16%
65.54%
41.34%
44.67%
86.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$5.92
$6.11
$6.10
$5.87
$6.15
$6.37
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.06
0.11
0.16
0.16
0.15
Net
realized
and
unrealized
gains
(losses)
(0.32)
(0.10)
0.07
0.26
(0.25)
(0.17)
Total
from
investment
operations
........
(0.28)
(0.04)
0.18
0.42
(0.09)
(0.02)
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.15)
(0.17)
(0.19)
(0.19)
(0.20)
Net
asset
value,
end
of
period
..........
$5.57
$5.92
$6.11
$6.10
$5.87
$6.15
Total
return
c
.......................
(4.73)%
(0.74)%
3.23%
7.08%
(1.45)%
(0.30)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.62%
0.62%
0.64%
0.64%
0.61%
0.64%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.62%
f
0.62%
f
0.63%
0.63%
0.61%
f
0.64%
f
Net
investment
income
...............
1.42%
1.04%
1.84%
2.61%
2.65%
2.32%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$552,275
$692,010
$743,012
$946,318
$720,281
$854,640
Portfolio
turnover
rate
................
21.54%
89.16%
65.54%
41.34%
44.67%
86.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2022
Franklin
U.S.
Government
Securities
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
97
a
a
Principal
Amount
a
Value
a
a
a
a
a
U.S.
Government
and
Agency
Securities
0.5%
U.S.
Treasury
Bonds,
4.75%,
2/15/37
....................................
$
14,500,000
$
18,928,164
Total
U.S.
Government
and
Agency
Securities
(Cost
$18,663,786)
.................
18,928,164
Mortgage-Backed
Securities
97.3%
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
97.3%
GNMA
I,
30
Year,
4.5%,
4/15/40
........................................
4,189,211
4,522,440
GNMA
I,
30
Year,
5%,
9/15/40
..........................................
151,509,643
165,842,783
GNMA
I,
30
Year,
5.5%,
2/15/40
........................................
68,435,668
76,442,297
GNMA
I,
30
Year,
6%,
12/15/39
.........................................
62,473,071
70,117,401
GNMA
I,
30
Year,
6.5%,
8/15/37
........................................
17,237,542
18,767,995
GNMA
I,
30
Year,
7%,
9/15/32
..........................................
11,186,738
12,385,775
GNMA
I,
30
Year,
7.5%,
7/15/26
-
8/15/33
.................................
1,071,573
1,166,888
GNMA
I,
30
Year,
8%,
10/15/29
.........................................
1,759
1,941
GNMA
I,
30
Year,
8.5%,
11/15/24
........................................
378
393
GNMA
I,
Single-family,
30
Year,
3.5%,
4/15/43
-
5/15/43
......................
13,828,940
14,172,832
GNMA
I,
Single-family,
30
Year,
4%,
10/15/40
-
8/15/46
.......................
40,326,339
42,408,118
GNMA
I,
Single-family,
30
Year,
4.5%,
2/15/39
-
6/15/41
......................
77,211,148
83,406,368
GNMA
I,
Single-family,
30
Year,
5%,
2/15/35
...............................
22,642
24,431
GNMA
I,
Single-family,
30
Year,
5.5%,
5/15/33
-
4/15/49
......................
929,411
993,228
GNMA
I,
Single-family,
30
Year,
7.25%,
12/15/25
-
1/15/26
.....................
37,901
38,366
GNMA
I,
Single-family,
30
Year,
7.5%,
4/15/22
-
7/15/31
......................
1,278,275
1,320,335
GNMA
I,
Single-family,
30
Year,
8%,
5/15/22
-
9/15/30
........................
461,004
470,271
GNMA
I,
Single-family,
30
Year,
8.5%,
6/15/22
-
5/15/25
......................
16,884
16,968
GNMA
I,
Single-family,
30
Year,
9%,
5/15/22
-
1/15/23
........................
1,502
1,505
GNMA
I,
Single-family,
30
Year,
9.5%,
8/15/22
..............................
591
592
GNMA
I,
Single-family,
30
Year,
10%,
2/15/25
..............................
3,360
3,368
GNMA
II,
30
Year,
4.5%,
5/20/34
-
6/20/41
.................................
3,493,047
3,719,608
GNMA
II,
30
Year,
6%,
7/20/39
.........................................
27,860,061
31,083,449
GNMA
II,
30
Year,
6%,
3/20/34
-
9/20/34
..................................
1,135,052
1,180,158
GNMA
II,
30
Year,
6.5%,
9/20/31
-
9/20/32
.................................
1,185,747
1,308,275
GNMA
II,
30
Year,
7%,
7/20/32
.........................................
339,106
377,388
GNMA
II,
30
Year,
7.5%,
10/20/24
.......................................
13,521
13,569
GNMA
II,
30
Year,
8%,
12/20/28
........................................
56,022
59,551
GNMA
II,
Single-family,
30
Year,
2%,
8/20/51
...............................
274,436,894
262,180,730
GNMA
II,
Single-family,
30
Year,
2.5%,
11/20/50
............................
16,194,384
15,711,537
GNMA
II,
Single-family,
30
Year,
2.5%,
7/20/51
.............................
83,681,122
81,297,808
GNMA
II,
Single-family,
30
Year,
2.5%,
8/20/51
.............................
246,632,885
239,608,556
GNMA
II,
Single-family,
30
Year,
2.5%,
9/20/51
.............................
99,110,215
96,287,466
GNMA
II,
Single-family,
30
Year,
2.5%,
10/20/51
............................
95,817,538
93,088,567
GNMA
II,
Single-family,
30
Year,
2.5%,
12/20/51
............................
96,755,327
93,999,648
GNMA
II,
Single-family,
30
Year,
2.5%,
1/20/52
.............................
237,422,915
230,660,895
GNMA
II,
Single-family,
30
Year,
3%,
10/20/44
..............................
22,498,584
22,445,770
GNMA
II,
Single-family,
30
Year,
3%,
12/20/44
..............................
11,426,314
11,399,655
GNMA
II,
Single-family,
30
Year,
3%,
5/20/45
...............................
16,877,433
16,836,078
GNMA
II,
Single-family,
30
Year,
3%,
4/20/46
...............................
22,723,619
22,643,934
GNMA
II,
Single-family,
30
Year,
3%,
9/20/47
...............................
18,407,904
18,336,827
GNMA
II,
Single-family,
30
Year,
3%,
10/20/47
..............................
29,513,057
29,399,058
GNMA
II,
Single-family,
30
Year,
3%,
6/20/50
...............................
13,713,107
13,848,975
GNMA
II,
Single-family,
30
Year,
3%,
7/20/51
...............................
178,282,380
176,775,946
GNMA
II,
Single-family,
30
Year,
3%,
8/20/51
...............................
199,442,096
197,673,449
GNMA
II,
Single-family,
30
Year,
3%,
9/20/51
...............................
32,931,645
32,646,133
GNMA
II,
Single-family,
30
Year,
3%,
10/20/51
..............................
139,992,379
138,750,148
GNMA
II,
Single-family,
30
Year,
3%,
11/20/51
..............................
88,912,961
88,103,601
GNMA
II,
Single-family,
30
Year,
3%,
12/20/51
..............................
127,949,540
126,704,453
GNMA
II,
Single-family,
30
Year,
3%,
2/20/45
-
10/20/50
......................
81,799,858
82,142,229
GNMA
II,
Single-family,
30
Year,
3.5%,
7/20/42
.............................
35,398,771
36,357,580
GNMA
II,
Single-family,
30
Year,
3.5%,
9/20/42
.............................
44,380,915
45,095,382
GNMA
II,
Single-family,
30
Year,
3.5%,
5/20/43
.............................
13,209,700
13,563,518
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
a
a
Principal
Amount
a
Value
a
a
a
a
a
Mortgage-Backed
Securities
(continued)
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
(continued)
GNMA
II,
Single-family,
30
Year,
3.5%,
6/20/43
.............................
$
15,377,746
$
15,793,981
GNMA
II,
Single-family,
30
Year,
3.5%,
8/20/43
.............................
9,969,590
10,239,468
GNMA
II,
Single-family,
30
Year,
3.5%,
9/20/47
.............................
167,898,260
170,962,994
GNMA
II,
Single-family,
30
Year,
3.5%,
11/20/47
............................
158,584,745
160,921,559
GNMA
II,
Single-family,
30
Year,
3.5%,
11/20/51
............................
26,532,867
26,741,554
GNMA
II,
Single-family,
30
Year,
3.5%,
10/20/40
-
1/20/49
.....................
48,006,726
49,111,047
GNMA
II,
Single-family,
30
Year,
4%,
11/20/40
..............................
11,853,944
12,461,928
GNMA
II,
Single-family,
30
Year,
4%,
9/20/41
...............................
11,775,034
12,379,097
GNMA
II,
Single-family,
30
Year,
4%,
10/20/41
..............................
14,562,123
15,309,880
GNMA
II,
Single-family,
30
Year,
4%,
11/20/41
..............................
13,548,795
14,243,844
GNMA
II,
Single-family,
30
Year,
4%,
5/20/47
...............................
40,709,974
42,115,220
GNMA
II,
Single-family,
30
Year,
4%,
6/20/47
...............................
31,106,641
32,068,290
GNMA
II,
Single-family,
30
Year,
4%,
7/20/47
...............................
20,161,275
20,898,012
GNMA
II,
Single-family,
30
Year,
4%,
5/20/40
-
12/20/49
......................
56,430,548
58,879,814
GNMA
II,
Single-family,
30
Year,
4.5%,
5/20/41
.............................
10,733,867
11,435,169
GNMA
II,
Single-family,
30
Year,
4.5%,
6/20/41
.............................
13,218,744
14,083,007
GNMA
II,
Single-family,
30
Year,
4.5%,
7/20/41
.............................
14,778,186
15,743,759
GNMA
II,
Single-family,
30
Year,
4.5%,
9/20/41
.............................
21,196,097
22,600,902
GNMA
II,
Single-family,
30
Year,
4.5%,
10/20/41
............................
14,996,962
15,989,095
GNMA
II,
Single-family,
30
Year,
4.5%,
5/20/33
-
2/20/44
......................
33,691,785
35,942,757
GNMA
II,
Single-family,
30
Year,
5%,
9/20/33
...............................
9,593,428
10,397,695
GNMA
II,
Single-family,
30
Year,
5%,
7/20/33
-
9/20/41
.......................
31,009,630
33,817,688
GNMA
II,
Single-family,
30
Year,
5.5%,
6/20/34
-
2/20/50
......................
44,380,987
48,758,773
GNMA
II,
Single-family,
30
Year,
6%,
6/20/34
...............................
584,697
631,001
GNMA
II,
Single-family,
30
Year,
6.5%,
6/20/24
-
1/20/39
......................
8,884,076
9,817,764
GNMA
II,
Single-family,
30
Year,
7%,
2/20/28
-
7/20/33
.......................
2,367,656
2,613,124
GNMA
II,
Single-family,
30
Year,
7.5%,
10/20/22
-
4/20/32
.....................
366,832
395,768
GNMA
II,
Single-family,
30
Year,
8%,
12/20/24
-
6/20/30
......................
163,902
177,120
GNMA
II,
Single-family,
30
Year,
8.5%,
1/20/25
-
6/20/25
......................
105
106
GNMA
II,
Single-family,
30
Year,
9.5%,
12/20/24
-
1/20/25
.....................
2,696
2,702
3,579,937,354
Total
Mortgage-Backed
Securities
(Cost
$3,688,183,878)
.........................
3,579,937,354
Total
Long
Term
Investments
(Cost
$3,706,847,664)
.............................
3,598,865,518
a
a
a
a
a
Short
Term
Investments
2.4%
Shares
a
Money
Market
Funds
2.4%
a,b
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
...................
89,394,141
89,394,141
Total
Money
Market
Funds
(Cost
$89,394,141)
..................................
89,394,141
Total
Short
Term
Investments
(Cost
$89,394,141
)
................................
89,394,141
a
Total
Investments
(Cost
$3,796,241,805)
100.2%
................................
$3,688,259,659
Other
Assets,
less
Liabilities
(0.2)%
...........................................
(8,272,851)
Net
Assets
100.0%
...........................................................
$3,679,986,808
See
Abbreviations
on
page
142
.
a
See
Note
3
(
f
)
regarding
investments
in
affiliated
management
investment
companies.
b
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
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Funds
Financial
Highlights
Franklin
Utilities
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semianual
Report
99
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
Year
Ended
September
30,
2018
a
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$20.20
$19.76
$22.53
$18.66
$19.16
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.24
0.43
0.51
0.53
0.02
Net
realized
and
unrealized
gains
(losses)
...........
3.48
1.94
(2.43)
4.41
(0.52)
Total
from
investment
operations
....................
3.72
2.37
(1.92)
4.94
(0.50)
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.52)
(0.50)
(0.49)
—
Net
realized
gains
.............................
(0.60)
(1.41)
(0.35)
(0.58)
—
Total
distributions
...............................
(0.84)
(1.93)
(0.85)
(1.07)
—
Net
asset
value,
end
of
period
......................
$23.08
$20.20
$19.76
$22.53
$18.66
Total
return
d
...................................
18.99%
12.29%
(8.68)%
27.43%
(2.61)%
Ratios
to
average
net
assets
e
Expenses
f
,g
....................................
0.83%
0.82%
0.83%
0.83%
0.84%
Net
investment
income
...........................
2.30%
2.10%
2.46%
2.51%
2.62%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$1,198,030
$982,201
$742,188
$521,782
$3,536
Portfolio
turnover
rate
............................
2.53%
5.18%
12.19%
7.90%
4.58%
a
For
the
period
September
10,
2018
(effective
date)
to
September
30,
2018.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Utilities
Fund
(continued)
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Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
100
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.21
$19.77
$22.54
$18.66
$19.18
$17.85
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.25
0.45
0.52
0.53
0.50
0.53
Net
realized
and
unrealized
gains
(losses)
3.48
1.94
(2.41)
4.44
(0.17)
1.30
Total
from
investment
operations
........
3.73
2.39
(1.89)
4.97
0.33
1.83
Less
distributions
from:
Net
investment
income
..............
(0.25)
(0.54)
(0.53)
(0.51)
(0.54)
(0.49)
Net
realized
gains
.................
(0.60)
(1.41)
(0.35)
(0.58)
(0.31)
(0.01)
Total
distributions
...................
(0.85)
(1.95)
(0.88)
(1.09)
(0.85)
(0.50)
Net
asset
value,
end
of
period
..........
$23.09
$20.21
$19.77
$22.54
$18.66
$19.18
Total
return
c
.......................
19.04%
12.40%
(8.59)%
27.61%
1.68%
10.38%
Ratios
to
average
net
assets
d
Expenses
e,f
........................
0.73%
0.72%
0.73%
0.73%
0.74%
0.75%
Net
investment
income
...............
2.39%
2.20%
2.50%
2.61%
2.72%
2.86%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$3,756,878
$3,321,370
$3,388,126
$4,176,487
$3,654,795
$4,182,780
Portfolio
turnover
rate
................
2.53%
5.18%
12.19%
7.90%
4.58%
0.89%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
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Franklin
Utilities
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(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semianual
Report
101
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.09
$19.65
$22.42
$18.57
$19.09
$17.76
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.20
0.34
0.41
0.42
0.41
0.43
Net
realized
and
unrealized
gains
(losses)
3.46
1.95
(2.41)
4.43
(0.18)
1.30
Total
from
investment
operations
........
3.66
2.29
(2.00)
4.85
0.23
1.73
Less
distributions
from:
Net
investment
income
..............
(0.20)
(0.44)
(0.42)
(0.42)
(0.44)
(0.39)
Net
realized
gains
.................
(0.60)
(1.41)
(0.35)
(0.58)
(0.31)
(0.01)
Total
distributions
...................
(0.80)
(1.85)
(0.77)
(1.00)
(0.75)
(0.40)
Net
asset
value,
end
of
period
..........
$22.95
$20.09
$19.65
$22.42
$18.57
$19.09
Total
return
c
.......................
18.76%
11.91%
(9.10)%
26.96%
1.18%
9.88%
Ratios
to
average
net
assets
d
Expenses
e
,f
........................
1.22%
1.22%
1.23%
1.23%
1.24%
1.25%
Net
investment
income
...............
1.88%
1.69%
1.98%
2.11%
2.22%
2.36%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$371,378
$350,553
$537,808
$767,363
$834,070
$981,515
Portfolio
turnover
rate
................
2.53%
5.18%
12.19%
7.90%
4.58%
0.89%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
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Financial
Highlights
Franklin
Utilities
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Report
The
accompanying
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are
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integral
part
of
these
financial
statements.
102
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.12
$19.68
$22.45
$18.59
$19.11
$17.78
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.22
0.38
0.44
0.45
0.44
0.46
Net
realized
and
unrealized
gains
(losses)
3.46
1.94
(2.41)
4.44
(0.18)
1.30
Total
from
investment
operations
........
3.68
2.32
(1.97)
4.89
0.26
1.76
Less
distributions
from:
Net
investment
income
..............
(0.22)
(0.47)
(0.45)
(0.45)
(0.47)
(0.42)
Net
realized
gains
.................
(0.60)
(1.41)
(0.35)
(0.58)
(0.31)
(0.01)
Total
distributions
...................
(0.82)
(1.88)
(0.80)
(1.03)
(0.78)
(0.43)
Net
asset
value,
end
of
period
..........
$22.98
$20.12
$19.68
$22.45
$18.59
$19.11
Total
return
c
.......................
18.82%
12.06%
(8.95)%
27.17%
1.33%
10.04%
Ratios
to
average
net
assets
d
Expenses
e
,f
........................
1.07%
1.07%
1.08%
1.08%
1.09%
1.10%
Net
investment
income
...............
2.05%
1.85%
2.15%
2.26%
2.37%
2.51%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$98,999
$83,441
$84,488
$103,376
$72,927
$94,465
Portfolio
turnover
rate
................
2.53%
5.18%
12.19%
7.90%
4.58%
0.89%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Utilities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semianual
Report
103
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.40
$19.93
$22.73
$18.81
$19.32
$17.97
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.28
0.50
0.58
0.56
0.55
0.58
Net
realized
and
unrealized
gains
(losses)
3.52
1.96
(2.46)
4.50
(0.17)
1.31
Total
from
investment
operations
........
3.80
2.46
(1.88)
5.06
0.38
1.89
Less
distributions
from:
Net
investment
income
..............
(0.28)
(0.58)
(0.57)
(0.56)
(0.58)
(0.53)
Net
realized
gains
.................
(0.60)
(1.41)
(0.35)
(0.58)
(0.31)
(0.01)
Total
distributions
...................
(0.88)
(1.99)
(0.92)
(1.14)
(0.89)
(0.54)
Net
asset
value,
end
of
period
..........
$23.32
$20.40
$19.93
$22.73
$18.81
$19.32
Total
return
c
.......................
19.19%
12.71%
(8.44)%
27.89%
1.97%
10.70%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.56%
0.58%
0.56%
0.53%
0.52%
0.48%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.50%
0.50%
0.50%
0.50%
0.48%
0.48%
f
Net
investment
income
...............
2.64%
2.42%
2.75%
2.84%
2.98%
3.13%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$204,651
$153,969
$144,079
$150,244
$230,393
$241,455
Portfolio
turnover
rate
................
2.53%
5.18%
12.19%
7.90%
4.58%
0.89%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Utilities
Fund
(continued)
franklintempleton.com
Semianual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
104
a
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.40
$19.93
$22.73
$18.81
$19.32
$17.97
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.27
0.48
0.56
0.56
0.54
0.57
Net
realized
and
unrealized
gains
(losses)
3.52
1.97
(2.46)
4.48
(0.18)
1.30
Total
from
investment
operations
........
3.79
2.45
(1.90)
5.04
0.36
1.87
Less
distributions
from:
Net
investment
income
..............
(0.27)
(0.57)
(0.55)
(0.54)
(0.56)
(0.51)
Net
realized
gains
.................
(0.60)
(1.41)
(0.35)
(0.58)
(0.31)
(0.01)
Total
distributions
...................
(0.87)
(1.98)
(0.90)
(1.12)
(0.87)
(0.52)
Net
asset
value,
end
of
period
..........
$23.32
$20.40
$19.93
$22.73
$18.81
$19.32
Total
return
c
.......................
19.14%
12.62%
(8.51)%
27.78%
1.82%
10.64%
Ratios
to
average
net
assets
d
Expenses
e
,f
........................
0.58%
0.57%
0.58%
0.58%
0.59%
0.60%
Net
investment
income
...............
2.54%
2.35%
2.66%
2.76%
2.87%
3.01%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,409,658
$1,200,859
$1,179,002
$1,262,883
$927,845
$963,228
Portfolio
turnover
rate
................
2.53%
5.18%
12.19%
7.90%
4.58%
0.89%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2022
Franklin
Utilities
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
105
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
98.9%
Construction
&
Engineering
1.0%
MDU
Resources
Group,
Inc.
.............................
United
States
2,700,000
$
71,955,000
Diversified
Telecommunication
Services
1.1%
a
TELUS
Corp.
........................................
Canada
3,000,000
78,368,326
Electric
Utilities
57.2%
Alliant
Energy
Corp.
...................................
United
States
3,750,000
234,300,000
American
Electric
Power
Co.,
Inc.
.........................
United
States
2,750,000
274,367,500
Constellation
Energy
Corp.
..............................
United
States
1,679,999
94,499,944
Duke
Energy
Corp.
....................................
United
States
2,700,000
301,482,000
Edison
International
...................................
United
States
4,300,000
301,430,000
Emera
,
Inc.
..........................................
Canada
1,800,000
89,218,956
Entergy
Corp.
........................................
United
States
2,200,000
256,850,000
Evergy
,
Inc.
..........................................
United
States
3,421,604
233,832,418
Eversource
Energy
....................................
United
States
2,200,000
194,018,000
Exelon
Corp.
.........................................
United
States
5,650,000
269,109,500
FirstEnergy
Corp.
.....................................
United
States
1,800,000
82,548,000
NextEra
Energy,
Inc.
...................................
United
States
9,686,286
820,525,288
OGE
Energy
Corp.
....................................
United
States
1,600,000
65,248,000
Origin
Energy
Ltd.
.....................................
Australia
7,000,000
32,585,242
a
PG&E
Corp.
.........................................
United
States
7,000,000
83,580,000
Pinnacle
West
Capital
Corp.
.............................
United
States
1,250,000
97,625,000
PPL
Corp.
...........................................
United
States
5,200,000
148,512,000
Southern
Co.
(The)
....................................
United
States
4,100,000
297,291,000
Xcel
Energy,
Inc.
......................................
United
States
2,100,000
151,557,000
4,028,579,848
Gas
Utilities
1.8%
Southwest
Gas
Holdings,
Inc.
............................
United
States
700,000
54,803,000
Spire,
Inc.
...........................................
United
States
1,000,000
71,760,000
126,563,000
Independent
Power
and
Renewable
Electricity
Producers
1.3%
Clearway
Energy,
Inc.,
C
................................
United
States
200,000
7,302,000
Vistra
Corp.
..........................................
United
States
3,500,000
81,375,000
88,677,000
Multi-Utilities
32.8%
Ameren
Corp.
........................................
United
States
1,668,250
156,415,120
Black
Hills
Corp.
......................................
United
States
784,393
60,413,949
CenterPoint
Energy,
Inc.
................................
United
States
6,250,000
191,500,000
CMS
Energy
Corp.
....................................
United
States
4,800,000
335,712,000
Consolidated
Edison,
Inc.
...............................
United
States
1,000,000
94,680,000
Dominion
Energy,
Inc.
..................................
United
States
3,800,000
322,886,000
DTE
Energy
Co.
......................................
United
States
1,500,000
198,315,000
E.ON
SE
............................................
Germany
9,000,000
104,577,530
National
Grid
plc
......................................
United
Kingdom
5,000,000
76,846,942
NiSource,
Inc.
........................................
United
States
5,600,000
178,080,000
NorthWestern
Corp.
...................................
United
States
1,255,416
75,940,113
Public
Service
Enterprise
Group,
Inc.
......................
United
States
1,900,000
133,000,000
Sempra
Energy
.......................................
United
States
1,800,000
302,616,000
WEC
Energy
Group,
Inc.
................................
United
States
800,000
79,848,000
2,310,830,654
Oil,
Gas
&
Consumable
Fuels
2.2%
Cheniere
Energy,
Inc.
..................................
United
States
700,000
97,055,000
DT
Midstream,
Inc.
....................................
United
States
750,000
40,695,000
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Utilities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
Williams
Cos.,
Inc.
(The)
................................
United
States
400,000
$
13,364,000
151,114,000
Water
Utilities
1.5%
Essential
Utilities,
Inc.
..................................
United
States
1,500,000
76,695,000
United
Utilities
Group
plc
................................
United
Kingdom
2,000,000
29,453,276
106,148,276
Total
Common
Stocks
(Cost
$3,033,921,276)
....................................
6,962,236,104
Short
Term
Investments
0.5%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
0.5%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
36,866,244
36,866,244
Total
Money
Market
Funds
(Cost
$36,866,244)
..................................
36,866,244
Total
Short
Term
Investments
(Cost
$36,866,244
)
................................
36,866,244
a
Total
Investments
(Cost
$3,070,787,520)
99.4%
..................................
$6,999,102,348
Other
Assets,
less
Liabilities
0.6%
.............................................
40,491,810
Net
Assets
100.0%
...........................................................
$7,039,594,158
See
Abbreviations
on
page
142
.
a
Non-income
producing.
b
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
March
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
107
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$13,422,520,717
$83,061,365
$5,994,118,699
Cost
-
Non-controlled
affiliates
(Note
3
f
and
12
)
.................
346,580,695
2,071,646
96,777,192
Cost
-
Unaffiliated
repurchase
agreements
....................
8,235,498
—
4,736,329
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$38,192,771,
$—
and
$27,153,879,
respectively)
..........................
$23,567,947,996
$98,539,322
$19,639,673,942
Value
-
Non-controlled
affiliates
(Note
3
f
and
12
)
................
346,580,695
2,071,646
96,777,192
Value
-
Unaffiliated
repurchase
agreements
....................
8,235,498
—
4,736,329
Cash
..................................................
—
—
1,004,545
Receivables:
Investment
securities
sold
.................................
3,352,985
—
55,679,810
Capital
shares
sold
......................................
46,251,310
108,373
8,648,340
Dividends
.............................................
3,275,829
3,250
7,038,762
Affiliates
..............................................
—
36,049
—
Other
assets
............................................
9,193
—
—
Total
assets
........................................
23,975,653,506
100,758,640
19,813,558,920
Liabilities:
Payables:
Capital
shares
redeemed
.................................
44,634,950
3,607,289
95,630,805
Management
fees
.......................................
8,253,671
—
7,055,391
Distribution
fees
........................................
3,038,930
20,575
3,124,475
Transfer
agent
fees
......................................
1,152,272
—
2,799,551
Trustees'
fees
and
expenses
...............................
—
330
—
Payable
upon
return
of
securities
loaned
(Note
1
g
)
................
41,175,498
—
23,680,330
Accrued
expenses
and
other
liabilities
.........................
387,267
28,407
746,391
Total
liabilities
.......................................
98,642,588
3,656,60
1
133,036,943
Net
assets,
at
value
...............................
$23,877,010,918
$97,102,039
$19,680,521,977
Net
assets
consist
of:
Paid-in
capital
...........................................
$14,446,484,393
$89,704,205
$4,873,356,501
Total
distributable
earnings
(losses)
...........................
9,430,526,525
7,397,834
14,807,165,476
Net
assets,
at
value
...............................
$23,877,010,918
$97,102,039
$19,680,521,977
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
March
31,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Class
A:
Net
assets,
at
value
.....................................
$10,221,960,846
$76,784,451
$12,145,774,874
Shares
outstanding
......................................
79,257,230
2,824,061
89,684,236
Net
asset
value
per
share
a
................................
$128.97
$27.19
$135.43
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%,
94.50%
and
94.50%,
respectively)
..........................
$136.48
$28.77
$143.31
Class
C:
Net
assets,
at
value
.....................................
$1,071,129,730
$6,035,885
$592,494,387
Shares
outstanding
......................................
10,269,189
225,473
4,998,586
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$104.31
$26.77
$118.53
Class
R:
Net
assets,
at
value
.....................................
$263,813,533
$807,144
$340,259,682
Shares
outstanding
......................................
2,126,390
29,795
2,533,024
Net
asset
value
and
maximum
offering
price
per
share
...........
$124.07
$27.09
$134.33
Class
R6:
Net
assets,
at
value
.....................................
$8,703,193,214
$65,029
$2,741,956,937
Shares
outstanding
......................................
64,051,313
2,374
20,128,761
Net
asset
value
and
maximum
offering
price
per
share
...........
$135.88
$27.39
$136.22
Advisor
Class:
Net
assets,
at
value
.....................................
$3,616,913,595
$13,409,530
$3,860,036,097
Shares
outstanding
......................................
26,958,161
490,370
28,314,143
Net
asset
value
and
maximum
offering
price
per
share
...........
$134.17
$27.35
$136.33
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
March
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
109
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$69,839,517,770
$3,706,847,664
$3,033,921,276
Cost
-
Non-controlled
affiliates
(Note
3
f
and
12
)
.................
2,361,265,916
89,394,141
36,866,244
Cost
-
Unaffiliated
repurchase
agreements
....................
22,783,450
—
—
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$106,928,986,
$—
and
$—,
respectively)
.....................
$73,823,434,481
$3,598,865,518
$6,962,236,104
Value
-
Non-controlled
affiliates
(Note
3
f
and
12
)
................
2,454,461,542
89,394,141
36,866,244
Value
-
Unaffiliated
repurchase
agreements
....................
22,783,450
—
—
Cash
..................................................
3,951,192
—
—
Receivables:
Investment
securities
sold
.................................
273,119,068
—
32,611,967
Capital
shares
sold
......................................
67,055,112
6,854,344
20,532,544
Dividends
and
interest
...................................
529,485,069
9,943,917
11,471,715
European
Union
tax
reclaims
(Note
1
i
)
.......................
36,533,623
—
1,012,122
Total
assets
........................................
77,210,823,537
3,705,057,920
7,064,730,696
Liabilities:
Payables:
Investment
securities
purchased
............................
956,579,783
—
13,367,800
Capital
shares
redeemed
.................................
54,764,401
20,636,898
6,794,721
Management
fees
.......................................
23,325,301
1,395,578
2,653,243
Distribution
fees
........................................
12,421,258
511,922
935,668
Transfer
agent
fees
......................................
6,718,003
750,984
820,540
Trustees'
fees
and
expenses
...............................
—
767
—
Options
written,
at
value
(premiums
received
$74,928,235,
$–
and
$–,
respectively)
............................................
68,486,000
—
—
Payable
upon
return
of
securities
loaned
(Note
1
g
)
................
113,119,450
—
—
Accrued
expenses
and
other
liabilities
.........................
5,421,192
1,774,963
564,566
Total
liabilities
.......................................
1,240,835,388
25,071,112
25,136,538
Net
assets,
at
value
...............................
$75,969,988,149
$3,679,986,808
$7,039,594,158
Net
assets
consist
of:
Paid-in
capital
...........................................
$70,376,768,096
$4,518,328,643
$3,033,772,957
Total
distributable
earnings
(losses)
...........................
5,593,220,053
(838,341,835)
4,005,821,201
Net
assets,
at
value
...............................
$75,969,988,149
$3,679,986,808
$7,039,594,158
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
March
31,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Class
A:
Net
assets,
at
value
.....................................
$18,177,132,414
$844,408,732
$1,198,029,731
Shares
outstanding
......................................
7,213,156,795
152,159,121
51,899,698
Net
asset
value
per
share
a
................................
$2.52
$5.55
$23.08
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$2.62
$5.77
$23.98
Class
A1:
Net
assets,
at
value
.....................................
$36,252,709,965
$1,863,833,177
$3,756,878,398
Shares
outstanding
......................................
14,350,984,250
335,700,613
162,691,354
Net
asset
value
per
share
a
................................
$2.53
$5.55
$23.09
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$2.63
$5.77
$23.99
Class
C:
Net
assets,
at
value
.....................................
$7,216,736,791
$154,961,171
$371,377,695
Shares
outstanding
......................................
2,809,105,400
28,126,818
16,184,835
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$2.57
$5.51
$22.95
Class
R:
Net
assets,
at
value
.....................................
$288,744,571
$17,131,151
$98,998,763
Shares
outstanding
......................................
116,887,469
3,086,492
4,307,488
Net
asset
value
and
maximum
offering
price
per
share
...........
$2.47
$5.55
$22.98
Class
R6:
Net
assets,
at
value
.....................................
$1,235,380,832
$247,377,479
$204,651,433
Shares
outstanding
......................................
491,334,329
44,359,795
8,776,844
Net
asset
value
and
maximum
offering
price
per
share
...........
$2.51
$5.58
$23.32
Advisor
Class:
Net
assets,
at
value
.....................................
$12,799,283,576
$552,275,098
$1,409,658,138
Shares
outstanding
......................................
5,113,844,373
99,122,051
60,453,740
Net
asset
value
and
maximum
offering
price
per
share
...........
$2.50
$5.57
$23.32
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
March
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
111
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$258,346,
$1,394
and
$331,501,
respectively)
Unaffiliated
issuers
......................................
$28,769,905
$164,608
$77,395,270
Non-controlled
affiliates
(Note
3
f
and
12
)
......................
12,717
148
5,554
Interest:
Unaffiliated
issuers
......................................
6,223
—
—
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
528,646
—
242,882
Non-controlled
affiliates
(Note
3
f
)
...........................
5,310
—
2,211
Total
investment
income
.................................
29,322,801
164,756
77,645,917
Expenses:
Management
fees
(Note
3
a
)
.................................
54,303,926
392,824
44,510,653
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
14,252,954
102,946
16,082,228
    Class
C
..............................................
6,181,985
31,474
3,244,552
    Class
R
..............................................
734,967
2,469
940,654
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
5,672,477
96,824
6,566,788
    Class
C
..............................................
614,860
7,399
331,231
    Class
R
..............................................
146,293
1,161
192,070
    Class
R6
.............................................
1,065,456
43
395,254
    Advisor
Class
..........................................
2,047,088
26,430
2,124,307
Custodian
fees
(Note
4
)
....................................
174,766
577
66,614
Reports
to
shareholders
fees
................................
692,129
4,164
422,018
Registration
and
filing
fees
..................................
570,424
85,252
178,737
Professional
fees
.........................................
42,060
24,465
58,333
Trustees'
fees
and
expenses
................................
84,385
845
77,028
Other
..................................................
185,592
3,589
204,226
Total
expenses
.......................................
86,769,362
780,462
75,394,693
Expense
reductions
(Note
4
)
.............................
(214)
(3)
(63)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(185,802)
(166,820)
(81,997)
Net
expenses
.......................................
86,583,346
613,639
75,312,633
Net
investment
income
(loss)
..........................
(57,260,545)
(448,883)
2,333,284
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:*
Unaffiliated
issuers
....................................
(500,135,257)
(6,719,195)
1,266,195,222
Foreign
currency
transactions
..............................
(164,195)
5,264
3,565
Net
realized
gain
(loss)
................................
(500,299,452)
(6,713,931)
1,266,198,787
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(4,268,036,081)
(10,078,140)
(1,672,452,808)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
5,018
—
1,167
Net
change
in
unrealized
appreciation
(depreciation)
..........
(4,268,031,063)
(10,078,140)
(1,672,451,641)
Net
realized
and
unrealized
gain
(loss)
..........................
(4,768,330,515)
(16,792,071)
(406,252,854)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(4,825,591,060)
$(17,240,954)
$(403,919,570)
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
March
31,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
112
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$12,919,080,
$–
and
$611,626,
respectively)
Unaffiliated
issuers
......................................
$634,904,481
$—
$100,381,110
Non-controlled
affiliates
(Note
3
f
and
12
)
......................
12,131,360
3,480
862
Interest:
Unaffiliated
issuers:
Paydown
gain
(loss)
...................................
(346,235)
(21,199,854)
—
Paid
in
cash
a
.........................................
608,078,307
62,409,795
62,491
Non-controlled
affiliates
(Note
3
f
and
12
)
......................
1,233,576
—
—
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
212,990
—
—
Non-controlled
affiliates
(Note
3
f
)
...........................
1,325
—
—
Other
income
(Note
1
i
)
.....................................
—
—
15,051
Total
investment
income
.................................
1,256,215,804
41,213,421
100,459,514
Expenses:
Management
fees
(Note
3
a
)
.................................
138,816,634
9,045,567
14,770,709
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
21,311,499
1,172,155
1,340,954
    Class
A1
.............................................
27,053,409
1,434,990
2,611,643
    Class
C
..............................................
23,974,528
568,356
1,157,984
    Class
R
..............................................
675,678
45,588
224,635
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
6,959,045
648,102
560,645
    Class
A1
.............................................
14,728,083
1,377,430
1,822,242
    Class
C
..............................................
3,012,482
120,828
186,672
    Class
R
..............................................
110,324
12,601
46,969
    Class
R6
.............................................
223,829
50,595
75,130
    Advisor
Class
..........................................
5,004,208
430,384
664,832
Custodian
fees
(N
ote
4
)
....................................
279,039
14,234
32,128
Reports
to
shareholders
fees
................................
1,654,812
170,188
180,836
Registration
and
filing
fees
..................................
407,569
95,985
78,411
Professional
fees
.........................................
54,916
39,936
29,622
Trustees'
fees
and
expenses
................................
262,226
19,930
23,949
Interest
expense
.........................................
—
—
2,759
Other
..................................................
648,355
310,493
59,131
Total
expenses
.......................................
245,176,636
15,557,362
23,869,251
Expense
reductions
(Note
4
)
.............................
(242,337)
(21,004)
(3)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(1,324,305)
(44,811)
(57,894)
Net
expenses
.......................................
243,609,994
15,491,547
23,811,354
Net
investment
income
..............................
1,012,605,810
25,721,874
76,648,160
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
March
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
113
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
2,386,159,769
(16,806,922)
86,071,826
Non-controlled
affiliates
(Note
3
f
and
12
)
....................
(293,534,915)
—
—
Written
options
.........................................
165,771,414
—
—
Foreign
currency
transactions
..............................
(114,494)
—
15,131
Net
realized
gain
(loss)
................................
2,258,281,774
(16,806,922)
86,086,957
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
1,259,110,851
(198,168,144)
974,729,067
Non-controlled
affiliates
(Note
3
f
and
12
)
....................
108,340,600
—
—
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
(1,596,572)
—
(48,171)
Written
options
.........................................
8,513,077
—
—
Net
change
in
unrealized
appreciation
(depreciation)
..........
1,374,367,956
(198,168,144)
974,680,896
Net
realized
and
unrealized
gain
(loss)
..........................
3,632,649,730
(214,975,066)
1,060,767,853
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$4,645,255,540
$(189,253,192)
$1,137,416,013
*Includes
gains
from
a
redemption
in-kind
(Note
14)
$47,765,967
a
Includes
amortization
of
premium
and
accretion
of
discount.
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
114
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$(57,260,545)
$(110,881,188)
$(448,883)
$(644,039)
Net
realized
gain
(loss)
............
(500,299,452)
373,789,285
(6,713,931)
421,805
Net
change
in
unrealized
appreciation
(depreciation)
.................
(4,268,031,063)
5,609,997,011
(10,078,140)
16,905,656
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(4,825,591,060)
5,872,905,108
(17,240,954)
16,683,422
Distributions
to
shareholders:
Class
A
........................
(172,943,583)
—
(493,434)
(319,730)
Class
C
........................
(23,184,109)
—
(38,188)
(38,815)
Class
R
........................
(4,586,975)
—
(5,897)
(5,388)
Class
R6
.......................
(134,824,197)
—
(415)
(542)
Advisor
Class
...................
(60,590,104)
—
(131,680)
(143,074)
Total
distributions
to
shareholders
.....
(396,128,968)
—
(669,614)
(507,549)
Capital
share
transactions:
(Note
2
)
Class
A
........................
342,526,730
1,166,707,331
9,534,449
43,462,387
Class
C
........................
(14,177,568)
(76,438,621)
1,052,694
883,316
Class
R
........................
10,877,872
22,853,993
1,717
179,679
Class
R6
.......................
726,519,640
2,023,008,052
415
(6,601)
Advisor
Class
...................
80,124,126
546,990,073
(8,213,662)
3,763,971
Total
capital
share
transactions
.......
1,145,870,800
3,683,120,828
2,375,613
48,282,752
Net
increase
(decrease)
in
net
assets
.....................
(4,075,849,228)
9,556,025,936
(15,534,955)
64,458,625
Net
assets:
Beginning
of
period
................
27,952,860,146
18,396,834,210
112,636,994
48,178,369
End
of
period
.....................
$23,877,010,918
$27,952,860,146
$97,102,039
$112,636,994
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
115
Franklin
Growth
Fund
Franklin
Income
Fund
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$2,333,284
$4,643,091
$1,012,60
5,810
$2,291,660,125
Net
realized
gain
(loss)
............
1,266,198,787
2,255,944,532
2,258,281,774
8,277,786,020
Net
change
in
unrealized
appreciation
(depreciation)
.................
(1,672,451,641)
2,537,596,777
1,374,367,956
4,453,738,736
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(403,919,570)
4,798,184,400
4,645,255,540
15,023,184,881
Distributions
to
shareholders:
Class
A
........................
(1,168,961,036)
(914,505,600)
(716,364,311)
(592,401,375)
Class
A1
.......................
—
—
(1,556,210,539)
(1,711,720,100)
Class
C
........................
(66,622,776)
(64,091,884)
(295,785,295)
(403,199,100)
Class
R
........................
(34,890,151)
(32,805,859)
(11,230,028)
(11,176,955)
Class
R6
.......................
(278,038,777)
(241,399,632)
(39,231,491)
(54,960,003)
Advisor
Class
...................
(380,494,855)
(294,899,901)
(543,234,028)
(551,809,902)
Total
distributions
to
shareholders
.....
(1,929,007,595)
(1,547,702,876)
(3,162,055,692)
(3,325,267,435)
Capital
share
transactions:
(Note
2
)
Class
A
........................
647,005,867
(27,036,183)
1,792,131,570
4,037,666,517
Class
A1
.......................
—
—
(174,607,472)
(2,988,069,908)
Class
C
........................
8,358,752
(175,973,220)
(445,983,999)
(3,537,489,972)
Class
R
........................
(13,802,637)
(90,877,145)
26,203,125
(4,876,292)
Class
R6
.......................
(44,808,070)
(384,267,389)
462,160,486
(1,087,687,048)
Advisor
Class
...................
83,844,868
74,268,334
594,962,861
449,167,160
Total
capital
share
transactions
.......
680,598,780
(603,885,603)
2,254,866,571
(3,131,289,543)
Net
increase
(decrease)
in
net
assets
.....................
(1,652,328,385)
2,646,595,921
3,738,066,419
8,566,627,903
Net
assets:
Beginning
of
period
................
21,332,850,362
18,686,254,441
72,231,921,730
63,665,293,827
End
of
period
.....................
$19,680,521,977
$21,332,850,362
$75,969,988,149
$72,231,921,730
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
116
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Six
Months
Ended
March
31,
2022
(unaudited)
Year
Ended
September
30,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$25,721,874
$44,586,688
$76,648,160
$137,021,391
Net
realized
gain
(loss)
............
(16,806,922)
(37,616,745)
86,086,957
264,123,410
Net
change
in
unrealized
appreciation
(depreciation)
.................
(198,168,144)
(55,832,649)
974,680,896
331,068,816
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(189,253,192)
(48,862,706)
1,137,416,013
732,213,617
Distributions
to
shareholders:
Class
A
........................
(10,477,873)
(23,887,218)
(41,895,287)
(73,915,473)
Class
A1
.......................
(23,398,439)
(56,617,836)
(137,896,226)
(326,246,620)
Class
C
........................
(1,602,562)
(5,344,917)
(13,375,767)
(47,366,175)
Class
R
........................
(182,133)
(439,687)
(3,405,155)
(7,457,012)
Class
R6
.......................
(3,736,553)
(8,320,373)
(6,963,915)
(14,174,816)
Advisor
Class
...................
(7,680,415)
(18,999,076)
(50,580,237)
(115,894,567)
Total
distributions
to
shareholders
.....
(47,077,975)
(113,609,107)
(254,116,587)
(585,054,663)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(121,380,999)
(41,286,508)
68,077,183
231,006,447
Class
A1
.......................
(123,569,867)
(476,854,975)
(40,429,925)
(149,939,578)
Class
C
........................
(31,479,505)
(148,136,268)
(27,244,479)
(208,206,881)
Class
R
........................
(1,303,785)
(7,497,229)
3,300,773
(3,125,939)
Class
R6
.......................
(40,326,309)
(46,647,889)
26,250,216
6,307,964
Advisor
Class
...................
(103,990,515)
(25,201,526)
33,947,576
(6,498,496)
Total
capital
share
transactions
.......
(422,050,980)
(745,624,395)
63,901,344
(130,456,483)
Net
increase
(decrease)
in
net
assets
.....................
(658,382,147)
(908,096,208)
947,200,770
16,702,471
Net
assets:
Beginning
of
period
................
4,338,368,955
5,246,465,163
6,092,393,388
6,075,690,917
End
of
period
.....................
$3,679,986,808
$4,338,368,955
$7,039,594,158
$6,092,393,388
Franklin
Custodian
Funds
117
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
1.
Organization
and
Significant
Accounting
Policies
Franklin
Custodian
Funds (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
six
separate
funds
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees. 
Class
A,
Class
C,
Class
R,
Class
R6,
&
Advisor
Class
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Class
A,
Class
A1,
Class
C,
Class
R,
Class
R6,
&
Advisor
Class
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
The
following
summarizes
the Funds'
significant
accounting
policies
. 
a.
Financial
Instrument
Valuation 
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
Funds' administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
derivative
financial
instruments
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
118
franklintempleton.com
Semiannual
Report
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds'
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
March
31,
2022,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
within
the
fair
value
hierarchy
(referred
to
as
“market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Joint
Repurchase
Agreement
Certain
or
all
Funds
enter
into
a
joint
repurchase
agreement
whereby
their
uninvested
cash
balance
is
deposited
into
a
joint
cash
account
with
other
funds
managed
by
the
investment
manager
or
an
affiliate
of
the
investment
manager
and
is
used
to
invest
in
one
or
more
repurchase
agreements.
The
value
and
face
amount
of
the
joint
repurchase
agreement
are
allocated
to
the
funds
based
on
their
pro-rata
interest.
A
repurchase
agreement
is
accounted
for
as
a
loan
by
the
Fund
to
the
seller,
collateralized
by
securities
which
are
delivered
to
the
Funds'
custodian.
The
fair
value,
including
accrued
interest,
of
the
initial
collateralization
is
required
to
be
at
least
102%
of
the
dollar
amount
invested
by
the
funds,
with
the
value
of
the
underlying
securities
marked
to
market
daily
to
maintain
coverage
of
at
least
100%.
Repurchase
agreements
are
subject
to
the
terms
of
Master
Repurchase
Agreements
(MRAs)
with
approved
counterparties
(sellers).
The
MRAs
contain
various
provisions,
including
but
not
limited
to
events
of
default
and
maintenance
of
collateral
for
repurchase
agreements.
In
the
event
of
default
by
either
the
seller
or
the
Funds,
certain
MRAs
may
permit
the
non-defaulting
party
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
119
franklintempleton.com
Semiannual
Report
to
net
and
close-out
all
transactions,
if
any,
traded
under
such
agreements.
The
Funds
may
sell
securities
it
holds
as
collateral
and
apply
the
proceeds
towards
the
repurchase
price
and
any
other
amounts
owed
by
the
seller
to
the
Funds
in
the
event
of
default
by
the
seller.
This
could
involve
costs
or
delays
in
addition
to
a
loss
on
the
securities
if
their
value
falls
below
the
repurchase
price
owed
by
the
seller.
The
joint
repurchase
agreement
held
by
the
Funds
at
period
end,
as
indicated
in
the
Schedules
of
Investments,
had
been
entered
into
on
March
31,
2022.
d.
Securities
Purchased
on
a
Delayed
Delivery
Basis
Certain
or
all
Funds
purchase
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Funds
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
e.
Derivative
Financial
Instruments
Certain
or
all
Funds
invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the
Statements
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the
Statements
of
Operations.
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
and
can
be
in
the
form
of
cash
and/or
securities.
Certain
or
all
Funds
purchased
or
wrote
exchange
traded
option
contracts
primarily
to
manage
exposure
to
equity
price
risk.
An
option
is
a
contract
entitling
the
holder
to
purchase
or
sell
a
specific
amount
of
shares
or
units
of
an
asset
or
notional
amount
of
a
swap
(swaption),
at
a
specified
price.
When
an
option
is
purchased
or
written,
an
amount
equal
to
the
premium
paid
or
received
is
recorded
as
an
asset
or
liability,
respectively.
Upon
exercise
of
an
option,
the
acquisition
cost
or
sales
proceeds
of
the
underlying
investment
is
adjusted
by
any
premium
received
or
paid.
Upon
expiration
of
an
option,
any
premium
received
or
paid
is
recorded
as
a
realized
gain
or
loss.
Upon
closing
an
option
other
than
through
expiration
or
exercise,
the
difference
between
the
premium
received
or
paid
and
the
cost
to
close
the
position
is
recorded
as
a
realized
gain
or
loss.
See
Note
10
regarding
other
derivative
information.
f.
Equity-Linked
Securities
Certain
or
all
Funds
invest in
equity-linked
securities.
Equity-linked
securities
are
hybrid
financial
instruments
that
generally
combine
both
debt
and
equity
characteristics
into
a
single
note
form.
Income
received
from
equity-linked
securities
is
recorded
as
realized
gains
in
the
Statements
of
Operations
and
may
be
based
on
the
performance
of
an
underlying
equity
security,
an
equity
index,
or
an
option
position.
The
risks
of
investing
in
equity-linked
securities
include
unfavorable
price
movements
in
the
underlying
security
and
the
credit
risk
of
the
issuing
financial
institution.
There
may
be
no
guarantee
of
a
return
of
principal
with
equity-linked
securities
and
the
appreciation
potential
may
be
limited.
Equity-linked
securities
may
be
more
volatile
and
less
liquid
than
other
investments
held
by
the
Funds.
g.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Joint
Repurchase
Agreement
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
120
franklintempleton.com
Semiannual
Report
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds,
and/
or
a
joint
repurchase
agreement.
Additionally,
at
March
31,
2022
the
Franklin
Growth
Fund
and
Franklin
Income
Fund
held
$4,589,742
and
$3,384,602,
respectively,
in
U.S.
Government
and
Agency
securities
as
collateral.
These
securities
are
held
as
collateral
in
segregated
accounts
with
the
Fund’s
custodian.
The
Fund
cannot
repledge
or
resell
these
securities
held
as
collateral.
As
such,
the
non-
cash
collateral
is
excluded
from
the
Statements
of
Assets
and
Liabilities.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-
party
vendor,
is
reported
separately
in
the
Statements
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
h.
Senior
Floating
Rate
Interests
Certain
or
all
Funds
invest
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
London
InterBank
Offered
Rate
(LIBOR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the
Funds
invest
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
i.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims).
Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or
credits
on
their
income
tax
returns.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
March
31,
2022, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
j.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
separately
on
the Statements
of
Operations.
1.
Organization
and
Significant
Accounting
Policies
(continued)
g.
Securities
Lending
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
121
franklintempleton.com
Semiannual
Report
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-
dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
k.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
l.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
j.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
122
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
March
31,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
a
...................................
8,526,767
$1,232,533,317
790,425
$23,989,206
Shares
issued
in
reinvestment
of
distributions
..........
1,053,359
163,734,102
15,386
489,286
Shares
redeemed
...............................
(7,468,867)
(1,053,740,689)
(528,635)
(14,944,043)
Net
increase
(decrease)
..........................
2,111,259
$342,526,730
277,176
$9,534,449
Year
ended
September
30,
2021
Shares
sold
a
...................................
22,450,304
$3,225,590,483
2,298,548
$66,948,165
Shares
issued
in
reinvestment
of
distributions
..........
—
—
11,547
311,678
Shares
redeemed
...............................
(14,413,505)
(2,058,883,152)
(832,827)
(23,797,456)
Net
increase
(decrease)
..........................
8,036,799
$1,166,707,331
1,477,268
$43,462,387
Class
C
Class
C
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
997,848
$117,486,843
68,388
$2,037,682
Shares
issued
in
reinvestment
of
distributions
..........
175,065
22,063,462
1,220
38,258
Shares
redeemed
a
..............................
(1,359,957)
(153,727,873)
(37,162)
(1,023,246)
Net
increase
(decrease)
..........................
(187,044)
$(14,177,568)
32,446
$1,052,694
Year
ended
September
30,
2021
Shares
sold
...................................
2,828,390
$329,663,898
181,084
$5,135,059
Shares
issued
in
reinvestment
of
distributions
..........
—
—
1,441
38,661
Shares
redeemed
a
..............................
(3,385,379)
(406,102,519)
(147,086)
(4,290,404)
Net
increase
(decrease)
..........................
(556,989)
$(76,438,621)
35,439
$883,316
Class
R
Class
R
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
282,132
$38,729,868
14,335
$418,516
Shares
issued
in
reinvestment
of
distributions
..........
30,631
4,583,974
186
5,897
Shares
redeemed
...............................
(243,220)
(32,435,970)
(15,916)
(422,696)
Net
increase
(decrease)
..........................
69,543
$10,877,872
(1,395)
$1,717
Year
ended
September
30,
2021
Shares
sold
...................................
616,643
$85,062,126
8,048
$254,410
Shares
issued
in
reinvestment
of
distributions
..........
—
—
198
5,336
Shares
redeemed
...............................
(446,989)
(62,208,133)
(2,717)
(80,067)
Net
increase
(decrease)
..........................
169,654
$22,853,993
5,529
$179,679
Class
R6
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
123
franklintempleton.com
Semiannual
Report
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
11,002,432
$1,650,385,451
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
819,201
134,013,149
13
415
Shares
redeemed
...............................
(7,192,188)
(1,057,878,960)
—
—
Net
increase
(decrease)
..........................
4,629,445
$726,519,640
13
$415
Year
ended
September
30,
2021
Shares
sold
...................................
25,514,587
$3,822,032,801
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
—
—
18
490
Shares
redeemed
...............................
(11,892,075)
(1,799,024,749)
(248)
(7,091)
Net
increase
(decrease)
..........................
13,622,512
$2,023,008,052
(230)
$(6,601)
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
5,094,848
$758,830,512
222,352
$6,874,564
Shares
issued
in
reinvestment
of
distributions
..........
331,088
53,493,894
4,117
131,564
Shares
redeemed
...............................
(5,125,874)
(732,200,280)
(524,746)
(15,219,790)
Net
increase
(decrease)
..........................
300,062
$80,124,126
(298,277)
$(8,213,662)
Year
ended
September
30,
2021
Shares
sold
...................................
11,005,673
$1,635,552,794
914,232
$27,927,761
Shares
issued
in
reinvestment
of
distributions
..........
—
—
1,206
32,617
Shares
redeemed
...............................
(7,316,134)
(1,088,562,721)
(794,013)
(24,196,407)
Net
increase
(decrease)
..........................
3,689,539
$546,990,073
121,425
$3,763,971
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
124
franklintempleton.com
Semiannual
Report
Franklin
Growth
Fund
Franklin
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
a
...................................
3,954,342
$572,502,804
945,898,753
$2,365,284,948
Shares
issued
in
reinvestment
of
distributions
..........
7,829,468
1,123,371,927
271,495,759
663,056,586
Shares
redeemed
...............................
(7,302,379)
(1,048,868,864)
(495,699,103)
(1,236,209,964)
Net
increase
(decrease)
..........................
4,481,431
$647,005,867
721,695,409
$1,792,131,570
Year
ended
September
30,
2021
Shares
sold
a
...................................
10,761,385
$1,530,421,261
2,486,746,513
$6,012,096,557
Shares
issued
in
reinvestment
of
distributions
..........
6,500,918
849,149,921
227,899,336
535,039,091
Shares
redeemed
...............................
(16,660,446)
(2,406,607,365)
(1,066,730,651)
(2,509,469,131)
Net
increase
(decrease)
..........................
601,857
$(27,036,183)
1,647,915,198
$4,037,666,517
Class
A1
Class
A1
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
—
$—
245,816,210
$615,557,189
Shares
issued
in
reinvestment
of
distributions
..........
—
—
591,408,115
1,448,912,811
Shares
redeemed
...............................
—
—
(895,830,655)
(2,239,077,472)
Net
increase
(decrease)
..........................
—
$—
(58,606,330)
$(174,607,472)
Year
ended
September
30,
2021
Shares
sold
...................................
—
$—
479,110,753
$1,144,654,736
Shares
issued
in
reinvestment
of
distributions
..........
—
—
670,125,547
1,566,412,599
Shares
redeemed
...............................
—
—
(2,421,276,941)
(5,699,137,243)
Net
increase
(decrease)
..........................
—
$—
(1,272,040,641)
$(2,988,069,908)
Class
C
Class
C
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
338,398
$43,385,028
198,513,894
$506,161,518
Shares
issued
in
reinvestment
of
distributions
..........
521,623
65,667,219
114,724,043
285,587,763
Shares
redeemed
a
..............................
(799,791)
(100,693,495)
(486,017,643)
(1,237,733,280)
Net
increase
(decrease)
..........................
60,230
$8,358,752
(172,779,706)
$(445,983,999)
Year
ended
September
30,
2021
Shares
sold
...................................
878,018
$110,767,406
369,536,736
$901,731,340
Shares
issued
in
reinvestment
of
distributions
..........
540,219
63,146,424
163,270,374
386,364,385
Shares
redeemed
a
..............................
(2,680,063)
(349,887,050)
(1,962,492,383)
(4,825,585,697)
Net
increase
(decrease)
..........................
(1,261,826)
$(175,973,220)
(1,429,685,273)
$(3,537,489,972)
Class
R
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
125
franklintempleton.com
Semiannual
Report
Franklin
Growth
Fund
Franklin
Income
Fund
Shares
Amount
Shares
Amount
Class
R
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
95,901
$13,834,382
18,507,358
$45,298,126
Shares
issued
in
reinvestment
of
distributions
..........
244,578
34,832,817
4,668,609
11,168,435
Shares
redeemed
...............................
(429,382)
(62,469,836)
(12,305,601)
(30,263,436)
Net
increase
(decrease)
..........................
(88,903)
$(13,802,637)
10,870,366
$26,203,125
Year
ended
September
30,
2021
Shares
sold
...................................
250,280
$35,061,835
21,710,983
$51,205,964
Shares
issued
in
reinvestment
of
distributions
..........
250,543
32,588,126
4,834,655
11,084,861
Shares
redeemed
...............................
(1,128,351)
(158,527,106)
(29,013,897)
(67,167,117)
Net
increase
(decrease)
..........................
(627,528)
$(90,877,145)
(2,468,259)
$(4,876,292)
Class
R6
Class
R6
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
1,722,848
$249,268,095
214,341,083
$528,407,841
Shares
issued
in
reinvestment
of
distributions
..........
1,758,267
253,489,423
13,275,457
32,512,974
Shares
redeemed
in-kind
(Note
14
)
..................
(448,827)
(65,832,485)
—
—
Shares
redeemed
...............................
(3,336,482)
(481,733,103)
(39,606,298)
(98,760,329)
Net
increase
(decrease)
..........................
(304,194)
$(44,808,070)
188,010,242
$462,160,486
Year
ended
September
30,
2021
Shares
sold
...................................
3,272,102
$463,210,889
89,459,562
$211,443,897
Shares
issued
in
reinvestment
of
distributions
..........
1,693,859
221,624,576
21,206,893
47,792,309
Shares
redeemed
in-kind
(Note
14
)
..................
(859,936)
(116,617,086)
—
—
Shares
redeemed
...............................
(6,691,054)
(952,485,768)
(593,615,276)
(1,346,923,254)
Net
increase
(decrease)
..........................
(2,585,029)
$(384,267,389)
(482,948,821)
$(1,087,687,048)
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
1,967,007
$284,288,765
610,857,996
$1,517,810,187
Shares
issued
in
reinvestment
of
distributions
..........
2,305,617
332,746,676
205,600,345
498,401,166
Shares
redeemed
...............................
(3,699,840)
(533,190,573)
(576,037,770)
(1,421,248,492)
Net
increase
(decrease)
..........................
572,784
$83,844,868
240,420,571
$594,962,861
Year
ended
September
30,
2021
Shares
sold
...................................
6,084,784
$911,711,800
1,011,404,240
$2,393,159,824
Shares
issued
in
reinvestment
of
distributions
..........
1,944,250
254,677,320
215,574,797
501,000,847
Shares
redeemed
...............................
(7,510,655)
(1,092,120,786)
(1,052,411,881)
(2,444,993,511)
Net
increase
(decrease)
..........................
518,379
$74,268,334
174,567,156
$449,167,160
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
126
franklintempleton.com
Semiannual
Report
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
a
...................................
16,413,047
$94,894,782
7,588,694
$162,260,059
Shares
issued
in
reinvestment
of
distributions
..........
1,733,110
9,946,502
1,795,494
36,670,220
Shares
redeemed
...............................
(39,147,191)
(226,222,283)
(6,106,782)
(130,853,096)
Net
increase
(decrease)
..........................
(21,001,034)
$(121,380,999)
3,277,406
$68,077,183
Year
ended
September
30,
2021
Shares
sold
a
...................................
89,048,888
$536,625,922
22,811,120
$471,624,865
Shares
issued
in
reinvestment
of
distributions
..........
3,796,157
22,766,715
3,159,167
62,740,214
Shares
redeemed
...............................
(99,939,196)
(600,679,145)
(14,909,843)
(303,358,632)
Net
increase
(decrease)
..........................
(7,094,151)
$(41,286,508)
11,060,444
$231,006,447
Class
A1
Class
A1
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
6,948,585
$39,826,895
3,003,257
$64,104,793
Shares
issued
in
reinvestment
of
distributions
..........
3,682,509
21,139,047
6,180,905
126,218,968
Shares
redeemed
...............................
(31,916,328)
(184,535,809)
(10,850,149)
(230,753,686)
Net
increase
(decrease)
..........................
(21,285,234)
$(123,569,867)
(1,665,987)
$(40,429,925)
Year
ended
September
30,
2021
Shares
sold
...................................
32,558,459
$196,137,703
6,411,233
$130,366,150
Shares
issued
in
reinvestment
of
distributions
..........
7,736,135
46,404,671
15,028,911
298,136,413
Shares
redeemed
...............................
(120,294,904)
(719,397,349)
(28,494,750)
(578,442,141)
Net
increase
(decrease)
..........................
(80,000,310)
$(476,854,975)
(7,054,606)
$(149,939,578)
Class
C
Class
C
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
3,024,450
$17,370,982
842,399
$17,910,016
Shares
issued
in
reinvestment
of
distributions
..........
276,574
1,575,616
642,392
13,009,939
Shares
redeemed
a
..............................
(8,780,671)
(50,426,103)
(2,752,963)
(58,164,434)
Net
increase
(decrease)
..........................
(5,479,647)
$(31,479,505)
(1,268,172)
$(27,244,479)
Year
ended
September
30,
2021
Shares
sold
...................................
12,752,895
$76,470,649
2,249,049
$45,668,999
Shares
issued
in
reinvestment
of
distributions
..........
876,685
5,224,662
2,345,268
46,172,729
Shares
redeemed
a
..............................
(38,672,490)
(229,831,579)
(14,504,035)
(300,048,609)
Net
increase
(decrease)
..........................
(25,042,910)
$(148,136,268)
(9,909,718)
$(208,206,881)
Class
R
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
127
franklintempleton.com
Semiannual
Report
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Shares
Amount
Shares
Amount
Class
R
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
260,507
$1,499,264
512,550
$10,924,601
Shares
issued
in
reinvestment
of
distributions
..........
31,589
181,280
166,894
3,389,294
Shares
redeemed
...............................
(515,843)
(2,984,329)
(519,831)
(11,013,122)
Net
increase
(decrease)
..........................
(223,747)
$(1,303,785)
159,613
$3,300,773
Year
ended
September
30,
2021
Shares
sold
...................................
908,077
$5,471,084
938,885
$19,039,802
Shares
issued
in
reinvestment
of
distributions
..........
71,959
431,680
376,330
7,434,213
Shares
redeemed
...............................
(2,226,889)
(13,399,993)
(1,459,736)
(29,599,954)
Net
increase
(decrease)
..........................
(1,246,853)
$(7,497,229)
(144,521)
$(3,125,939)
Class
R6
Class
R6
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
6,139,960
$35,727,066
1,919,955
$41,464,483
Shares
issued
in
reinvestment
of
distributions
..........
640,000
3,690,315
335,442
6,929,859
Shares
redeemed
...............................
(13,858,280)
(79,743,690)
(1,027,333)
(22,144,126)
Net
increase
(decrease)
..........................
(7,078,320)
$(40,326,309)
1,228,064
$26,250,216
Year
ended
September
30,
2021
Shares
sold
...................................
14,680,034
$88,831,810
2,602,530
$53,255,623
Shares
issued
in
reinvestment
of
distributions
..........
1,368,088
8,243,208
705,440
14,135,443
Shares
redeemed
...............................
(23,746,448)
(143,722,907)
(2,987,204)
(61,083,102)
Net
increase
(decrease)
..........................
(7,698,326)
$(46,647,889)
320,766
$6,307,964
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
March
31,
2022
Shares
sold
...................................
11,123,817
$64,183,857
6,411,817
$139,428,391
Shares
issued
in
reinvestment
of
distributions
..........
1,228,039
7,080,019
2,297,573
47,428,059
Shares
redeemed
...............................
(30,183,765)
(175,254,391)
(7,129,399)
(152,908,874)
Net
increase
(decrease)
..........................
(17,831,909)
$(103,990,515)
1,579,991
$33,947,576
Year
ended
September
30,
2021
Shares
sold
...................................
100,843,441
$605,662,748
15,271,199
$312,500,667
Shares
issued
in
reinvestment
of
distributions
..........
2,890,966
17,388,910
5,397,482
108,098,490
Shares
redeemed
...............................
(108,356,509)
(648,253,184)
(20,941,268)
(427,097,653)
Net
increase
(decrease)
..........................
(4,622,102)
$(25,201,526)
(272,587)
$(6,498,496)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
128
franklintempleton.com
Semiannual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
Franklin
Income
Fund
and
Franklin
Utilities
Fund
pay
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
month-end
net
assets
of
each
of
the
Funds
as
follows:
Franklin
DynaTech
Fund,
Franklin
Growth
Fund
and
Franklin
U.S.
Government
Securities
Fund
pay
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
month-end
net
assets
of
each
of
the
Funds
as
follows:
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
Over
$20
billion,
up
to
and
including
$35
billion
0.355%
Over
$35
billion,
up
to
and
including
$50
billion
0.350%
Over
$50
billion,
up
to
and
including
$65
billion
0.345%
Over
$65
billion,
up
to
and
including
$80
billion
0.340%
In
excess
of
$80
billion
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
Over
$20
billion,
up
to
and
including
$35
billion
0.355%
Over
$35
billion,
up
to
and
including
$50
billion
0.350%
In
excess
of
$50
billion
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
129
franklintempleton.com
Semiannual
Report
Franklin
Focused
Growth
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund as
follows:
For
the
period
ended
March
31,
2022,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
each
of
the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
and
A1
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Class
C
and
R
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Annualized
Fee
Rate
Net
Assets
0.700%
Up
to
and
including
$500
million
0.600%
Over
$500
million,
up
to
and
including
$1
billion
0.550%
Over
$1
billion,
up
to
and
including
$3
billion
0.500%
Over
$3
billion,
up
to
and
including
$5
billion
0.450%
In
excess
of
$5
billion
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Gross
effective
investment
management
fee
rate
........
0.410%
0.700%
0.423%
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Gross
effective
investment
management
fee
rate
........
0.375%
0.449%
0.458%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
130
franklintempleton.com
Semiannual
Report
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Reimbursement
Plans:
Class
A
...............................
0.25%
0.25%
0.25%
Compensation
Plans:
Class
C
...............................
1.00%
1.00%
1.00%
Class
R
...............................
0.50%
0.50%
0.50%
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Reimbursement
Plans:
Class
A
...............................
0.25%
0.25%
0.25%
Class
A1
..............................
0.15%
0.15%
0.15%
Compensation
Plans:
Class
C
...............................
0.65%
0.65%
0.65%
Class
R
...............................
0.50%
0.50%
0.50%
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$1,992,916
$40,208
$765,975
CDSC
retained
...........................
$186,944
$4,835
$33,915
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$1,371,131
$25,114
$57,399
CDSC
retained
...........................
$532,220
$140,045
$17,834
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
131
franklintempleton.com
Semiannual
Report
For
the
period
ended
March
31,
2022,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
March
31,
2022,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Transfer
agent
fees
........................
$4,317,395
$68,333
$4,214,988
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Transfer
agent
fees
........................
$13,581,933
$1,318,526
$1,507,992
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
DynaTech
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
396,130,154
$
3,120,260,194
$
(3,202,749,653)
$
—
$
—
$
313,640,695
313,640,695
$
12,717
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
44,677,000
857,243,000
(868,980,000)
—
—
32,940,000
32,940,000
5,310
Total
Affiliated
Securities
...
$440,807,154
$3,977,503,194
$(4,071,729,653)
$—
$—
$346,580,695
$18,027
Franklin
Focused
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
3,205,079
$24,988,552
$(26,121,985)
$
—
$
—
$
2,071,646
2,071,646
$
148
Total
Affiliated
Securities
...
$3,205,079
$24,988,552
$(26,121,985)
$—
$—
$2,071,646
$148
3.
Transactions
with
Affiliates
(continued)
e.
Transfer
Agent
Fees
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
132
franklintempleton.com
Semiannual
Report
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
Franklin
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
141,998,542
$1,002,155,109
$(1,066,320,459)
$
—
$
—
$77,833,192
77,833,192
$5,554
$
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
76,774,000
363,614,000
(421,444,000)
—
—
18,944,000
18,944,000
2,211
Total
Affiliated
Securities
...
$218,772,542
$1,365,769,109
$(1,487,764,459)
$—
$—
$96,777,192
$7,765
Franklin
Income
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
3,428,988,776
$
10,766,404,378
$(12,183,067,612)
$
—
$
—
$2,012,325,542
2,012,325,542
$121,035
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
1,876,000
482,977,697
(394,517,697)
—
—
90,336,000
90,336,000
1,325
Total
Affiliated
Securities
...
$3,430,864,776
$11,249,382,075
$(12,577,585,309)
$—
$—
$2,102,661,542
$122,360
Franklin
U.S.
Government
Securities
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
85,708,046
$480,894,596
$(477,208,501)
$—
$—
$89,394,141
89,394,141
$3,480
Total
Affiliated
Securities
...
$85,708,046
$480,894,596
$(477,208,501)
$—
$—
$89,394,141
$3,480
Franklin
Utilities
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
12,629,462
$
237,976,750
$(213,739,968)
$
—
$
—
$36,866,244
36,866,244
$
862
Total
Affiliated
Securities
...
$12,629,462
$237,976,750
$(213,739,968)
$—
$—
$36,866,244
$862
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
133
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
respective
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
Franklin
Focused
Growth
Fund
so
that
the
operating
expenses
(excluding
interest
expense,
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
does
not
exceed
0.85%
based
on
the
average
net
assets
of
each
class
until
January
31,
2023.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund’s
fiscal
year
end.
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
January
31,
2023.
h.
Interfund
Transactions
Certain
or
all
Funds
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
These
purchases,
sales
and
the
related
net
realized
gains
(losses),
if
any,
for
the
period
ended
March
31,
2022,
were
as
follows:
4.
Expense
Offset
Arrangement
The
Funds
have entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses.
During
the period
ended
March
31,
2022, the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
 At
September
30,
2021,
the
capital
loss
carryforwards
were
as
follows:
Franklin
Income
Fund
Purchases
..............................
$18,212,500
Sales
..................................
—
Realized
gain
(loss)
.......................
—
Franklin
U.S.
Government
Securities
Fund
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
280,349,613
Long
term
.............................
410,781,366
Total
capital
loss
carryforwards
............
$691,130,979
3.
Transactions
with
Affiliates
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
134
franklintempleton.com
Semiannual
Report
For
tax
purposes,
the
Funds
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
September
30,
2021,
the
deferred
losses
were
as
follows:
At
March
31,
2022,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
EU
reclaims,
passive
foreign
investment
company
shares,
paydown
losses,
bond
discounts
and
premiums,
corporate
actions,
equity-linked
securities,
wash
sales
and
gains
realized
on
in-kind
shareholder
redemptions.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities
and
in-kind
transactions)
for
the
period
ended
March
31,
2022,
were
as
follows:
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
a
a
a
Late-year
ordinary
loss
.....................
$88,558,636
$559,818
Post-October
capital
loss
...................
—
18,568
$88,558,636
$578,386
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
a
a
a
a
Cost
of
investments
.......................
$13,780,158,564
$85,315,272
$6,091,948,973
Unrealized
appreciation
.....................
$10,341,431,287
$18,505,942
$13,996,555,882
Unrealized
depreciation
.....................
(198,825,662)
(3,210,246)
(347,317,392)
Net
unrealized
appreciation
(depreciation)
.......
$10,142,605,625
$15,295,696
$13,649,238,490
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
a
a
a
a
Cost
of
investments
.......................
$72,332,526,472
$3,797,293,674
$3,071,557,198
Unrealized
appreciation
.....................
$6,756,866,103
$38,680,244
$3,934,010,667
Unrealized
depreciation
.....................
(2,857,199,102)
(147,714,259)
(6,465,517)
Net
unrealized
appreciation
(depreciation)
.......
$3,899,667,001
$(109,034,015)
$3,927,545,150
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Purchases
..............................
$7,480,360,587
$36,051,586
$688,507,706
Sales
..................................
$6,630,727,860
$29,530,971
$1,773,966,219
a
5.
Income
Taxes
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
135
franklintempleton.com
Semiannual
Report
a
Sales
of
investments
excludes
in-kind
transactions
of
$64,770,944.
At
March
31,
2022
,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
7.
Credit Risk
At
March
31,
2022,
Franklin
Income
Fund
had
25.5%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
8.
Geopolitical
Risk 
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Funds
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
9.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Funds, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
10.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Purchases
..............................
$25,807,210,803
$852,659,950
$163,646,425
Sales
..................................
$22,719,338,041
$1,293,905,871
$331,086,333
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Securities
lending
transactions
a
:
Equity
investments
b
........................
$41,175,498
$23,680,330
$113,119,450
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
6.
Investment
Transactions
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
136
franklintempleton.com
Semiannual
Report
At
March
31,
2022,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
11.
Other
Derivative
Information
At
March
31,
2022,
investments
in
derivative
contracts
are
reflected
in
the
Statements
of
Assets
and
Liabilities
as
follows:
For
the
period
ended
March
31,
2022,
the
effect
of
derivative
contracts
in
the
Statements
of
Operations
was
as
follows:
For
the
period
ended
March
31,
2022,
the
average
month
end
notional
amount
of
options
represented
32,958,314
shares.
See
Note
1(e)
regarding
derivative
financial
instruments. 
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Growth
Fund
25,413
Canva
,
Inc.
................................
11/08/21
$
43,323,040
$
20,070,622
2,353
Canva
,
Inc.,
A
..............................
11/08/21
4,011,298
1,858,347
94
Canva
,
Inc.,
A-3
.............................
11/08/21
160,247
74,239
8
Canva
,
Inc.,
A-4
.............................
11/08/21
13,638
6,318
5
Canva
,
Inc.,
A-5
.............................
11/08/21
8,524
3,949
96,603
Checkout
Payments
Group
Ltd.,
B
...............
1/11/22
30,000,062
30,000,062
822,494
Gusto,
Inc.,
E
...............................
7/13/21
24,999,977
16,732,791
849,894
OneTrust
LLC,
C
............................
4/01/21
16,666,676
13,603,370
540,043
Stripe,
Inc.,
B
...............................
5/18/21
21,671,052
15,720,690
756,137
Stripe,
Inc.,
H
...............................
3/15/21
30,339,997
22,011,201
Total
Restricted
Securities
(Value
is
0.6%
of
Net
Assets)
..............
$171,194,511
$120,081,589
Asset
Derivatives
Liability
Derivatives
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Franklin
Income
Fund
Equity
contracts
...........
Investments
in
securities,
at
value
$
—
Options
written,
at
value
$
68,486,000
Total
....................
$—
$68,486,000
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Period
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Period
Franklin
Income
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
  appreciation
(depreciation)
on:
Equity
Contracts
..............
Written
options
$165,771,414
Written
options
$8,513,077
Total
.......................
$165,771,414
$8,513,077
10.
Restricted
Securities
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
137
franklintempleton.com
Semiannual
Report
12.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
March
31,
2022,
investments
in
“affiliated
companies”
were
as
follows:
13.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
March
31,
2022,
the
Funds
did
not
use
the
Global
Credit
Facility.
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Principal
Amount
Held
at
End
of
Period
Investment
Income
Franklin
Income
Fund
Non-Controlled
Affiliates
Dividends
Chesapeake
Energy
Corp.
$
307,950,000
$
—
$
(219,917,255)
$
(172,170,414)
$
—
a
$
—
a
—
$
10,132,844
Chesapeake
Energy
Corp.,
2/09/26
..........
391,333,500
—
(443,405,550)
(211,758,187)
—
b
 —
b
—
3,000
Chesapeake
Energy
Corp.,
Escrow
Account,
144A
26,742,500
—
—
—
—
a
—
a
—
734,375
CHS/Community
Health
Systems,
Inc.
......
117,000,000
—
—
—
1,700,000
118,700,000
10,000,000
—
Civitas
Resources,
Inc.
.
162,860,000
—
(178,910,510)
50,730,510
—
b
—
b
—
1,140,106
Weatherford
International
plc
.............
232,499,400
—
(145,703,176)
39,663,176
106,640,600
233,100,000
7,000,000
—
$1,238,385,400
$—
$(987,936,491)
$
(293,534,915)
$
108,340,600
$351,800,000
—
$
12,010,325
Interest
Civitas
Resources,
Inc.,
Senior
Note,
7.5%,
4/30/26
..........
33,003,296
—
—
—
—
a
—
a
—
1,233,576
Total
Affiliated
Securities
(Value
is
0.5%
of
Net
Assets)
..........
$1,271,388,696
$—
$(987,936,491)
(293,534,915)
108,340,600
$351,800,000
$13,243,901
a
As
of
March
31,
2022,
no
longer
an
affiliate.
b
As
of
March
31,
2022,
no
longer
held
by
the
fund.
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
138
franklintempleton.com
Semiannual
Report
14.
Redemption
In-Kind
During
the
period
ended
March
31,
2022
and
year
ended
September
30,
2021,
the
Fund
realized
$47,765,967
and
$80,827,002,
respectively,
of
net
gains
resulting
from
redemptions
in-kind
in
which
a
shareholder
redeemed
fund
shares
for
cash
and
securities
held
by
the
Fund.
Because
such
gains
are
not
taxable
to
the
Fund,
and
are
not
distributed
to
remaining
shareholders,
they
are
reclassified
from
accumulated
net
realized
gains
to
paid-in
capital.
15.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
March
31,
2022,
in
valuing
the
Funds'
assets
and
liabilities
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
DynaTech
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
167,761,500
$
—
$
—
$
167,761,500
Automobiles
..........................
716,604,000
—
—
716,604,000
Banks
...............................
153,848,750
—
—
153,848,750
Biotechnology
.........................
29,068,000
78,228,428
—
107,296,428
Capital
Markets
........................
683,405,500
—
—
683,405,500
Chemicals
...........................
100,431,500
95,740,682
—
196,172,182
Construction
&
Engineering
...............
66,463,050
—
—
66,463,050
Electric
Utilities
........................
296,485,000
—
—
296,485,000
Electronic
Equipment,
Instruments
&
Components
........................
300,669,500
92,751,951
—
393,421,451
Energy
Equipment
&
Services
.............
87,384,000
—
—
87,384,000
Entertainment
.........................
167,706,000
—
—
167,706,000
Equity
Real
Estate
Investment
Trusts
(REITs)
.
208,970,000
—
—
208,970,000
Health
Care
Equipment
&
Supplies
.........
1,633,238,250
—
—
1,633,238,250
Health
Care
Providers
&
Services
..........
254,985,000
—
—
254,985,000
Health
Care
Technology
.................
412,193,000
—
—
412,193,000
Hotels,
Restaurants
&
Leisure
.............
231,346,000
—
—
231,346,000
Industrial
Conglomerates
................
236,115,000
—
—
236,115,000
Interactive
Media
&
Services
..............
1,477,470,000
23,047,319
—
1,500,517,319
Internet
&
Direct
Marketing
Retail
..........
1,855,976,200
1,353,097
—
1,857,329,297
IT
Services
...........................
1,803,342,388
396,192,678
—
2,199,535,066
Life
Sciences
Tools
&
Services
............
1,589,386,000
161,473,990
—
1,750,859,990
Media
...............................
12,765,244
—
—
12,765,244
Pharmaceuticals
.......................
428,537,500
—
—
428,537,500
Professional
Services
...................
59,949,000
—
—
59,949,000
Semiconductors
&
Semiconductor
Equipment
.
3,306,970,500
54,627,169
—
3,361,597,669
Software
.............................
5,995,631,800
—
—
5,995,631,800
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
139
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
DynaTech
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Technology
Hardware,
Storage
&
Peripherals
.
$
349,220,000
$
—
$
—
$
349,220,000
Trading
Companies
&
Distributors
..........
38,610,000
—
—
38,610,000
Short
Term
Investments
...................
346,580,695
8,235,498
—
354,816,193
Total
Investments
in
Securities
...........
$23,011,113,377
$911,650,812
a
$—
$23,922,764,189
Franklin
Focused
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
1,101,840
—
—
1,101,840
Automobiles
..........................
5,819,040
—
—
5,819,040
Capital
Markets
........................
2,262,960
—
—
2,262,960
Electric
Utilities
........................
3,939,015
—
—
3,939,015
Energy
Equipment
&
Services
.............
924,814
—
—
924,814
Entertainment
.........................
567,086
—
—
567,086
Equity
Real
Estate
Investment
Trusts
(REITs)
.
2,064,600
—
—
2,064,600
Food
&
Staples
Retailing
.................
4,606,800
—
—
4,606,800
Health
Care
Equipment
&
Supplies
.........
7,666,780
—
—
7,666,780
Health
Care
Technology
.................
1,062,300
—
—
1,062,300
Interactive
Media
&
Services
..............
5,562,700
—
—
5,562,700
Internet
&
Direct
Marketing
Retail
..........
10,731,434
—
—
10,731,434
IT
Services
...........................
6,135,654
1,980,963
—
8,116,617
Life
Sciences
Tools
&
Services
............
4,941,830
—
—
4,941,830
Metals
&
Mining
.......................
953,864
—
—
953,864
Personal
Products
.....................
1,225,440
—
—
1,225,440
Road
&
Rail
..........................
500,770
—
—
500,770
Semiconductors
&
Semiconductor
Equipment
.
15,672,761
—
—
15,672,761
Software
.............................
20,818,671
—
—
20,818,671
Short
Term
Investments
...................
2,071,646
—
—
2,071,646
Total
Investments
in
Securities
...........
$98,630,005
$1,980,963
b
$—
$100,610,968
Franklin
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
851,992,248
—
—
851,992,248
Auto
Components
......................
72,478,180
—
—
72,478,180
Automobiles
..........................
204,288,990
—
—
204,288,990
Beverages
...........................
553,104,358
—
—
553,104,358
Biotechnology
.........................
352,690,976
—
—
352,690,976
Building
Products
......................
240,161,370
—
—
240,161,370
Capital
Markets
........................
861,110,309
—
—
861,110,309
Chemicals
...........................
459,519,683
—
—
459,519,683
Commercial
Services
&
Supplies
...........
84,615,163
—
—
84,615,163
Construction
Materials
..................
119,870,142
—
—
119,870,142
Electric
Utilities
........................
170,601,027
—
—
170,601,027
Electrical
Equipment
....................
91,453,507
—
—
91,453,507
Electronic
Equipment,
Instruments
&
Components
........................
589,675,531
—
—
589,675,531
Entertainment
.........................
230,158,987
—
—
230,158,987
Equity
Real
Estate
Investment
Trusts
(REITs)
.
207,179,349
—
—
207,179,349
Food
&
Staples
Retailing
.................
21,536,790
—
—
21,536,790
Food
Products
........................
32,225,529
—
—
32,225,529
Health
Care
Equipment
&
Supplies
.........
944,590,849
—
—
944,590,849
15.
Fair
Value
Measurements
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
140
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Growth
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Health
Care
Providers
&
Services
..........
$
196,836,597
$
—
$
—
$
196,836,597
Health
Care
Technology
.................
62,914,943
—
—
62,914,943
Hotels,
Restaurants
&
Leisure
.............
186,196,723
—
—
186,196,723
Interactive
Media
&
Services
..............
896,116,625
—
—
896,116,625
Internet
&
Direct
Marketing
Retail
..........
879,012,918
—
—
879,012,918
IT
Services
...........................
1,024,016,212
117,702,902
20,070,622
1,161,789,736
Life
Sciences
Tools
&
Services
............
1,221,609,096
—
—
1,221,609,096
Machinery
............................
745,316,924
—
—
745,316,924
Media
...............................
106,694,158
—
—
106,694,158
Personal
Products
.....................
55,913,063
—
—
55,913,063
Pharmaceuticals
.......................
799,258,619
—
—
799,258,619
Professional
Services
...................
252,448,894
—
—
252,448,894
Road
&
Rail
..........................
725,123,083
—
—
725,123,083
Semiconductors
&
Semiconductor
Equipment
.
1,429,166,286
—
—
1,429,166,286
Software
.............................
3,250,261,862
—
45,720,752
3,295,982,614
Technology
Hardware,
Storage
&
Peripherals
.
958,340,001
—
—
958,340,001
Textiles,
Apparel
&
Luxury
Goods
..........
251,539,332
—
—
251,539,332
Trading
Companies
&
Distributors
..........
160,203,166
—
—
160,203,166
Water
Utilities
.........................
113,667,961
—
—
113,667,961
Convertible
Preferred
Stocks
...............
—
—
54,290,215
54,290,215
Short
Term
Investments
...................
96,777,192
4,736,329
—
101,513,521
Total
Investments
in
Securities
...........
$19,498,666,643
$122,439,231
c
$120,081,589
$19,741,187,463
Franklin
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
955,302,619
—
—
955,302,619
Banks
...............................
2,163,049,700
310,179,843
—
2,473,229,543
Beverages
...........................
376,605,000
—
—
376,605,000
Biotechnology
.........................
1,213,135,000
—
—
1,213,135,000
Capital
Markets
........................
349,600,000
—
—
349,600,000
Chemicals
...........................
249,910,000
313,875,705
—
563,785,705
Communications
Equipment
..............
557,600,000
—
—
557,600,000
Containers
&
Packaging
.................
210,013,697
—
—
210,013,697
Diversified
Telecommunication
Services
.....
2,085,773,501
—
—
2,085,773,501
Electric
Utilities
........................
3,984,150,000
—
—
3,984,150,000
Energy
Equipment
&
Services
.............
233,100,000
—
—
233,100,000
Entertainment
.........................
75,438,000
—
—
75,438,000
Food
&
Staples
Retailing
.................
297,914,460
—
—
297,914,460
Health
Care
Equipment
&
Supplies
.........
443,800,000
—
—
443,800,000
Health
Care
Providers
&
Services
..........
118,700,000
—
—
118,700,000
Household
Products
....................
343,800,000
—
—
343,800,000
Independent
Power
and
Renewable
Electricity
Producers
..........................
127,875,000
—
—
127,875,000
Industrial
Conglomerates
................
410,027,400
553,944,443
—
963,971,843
Insurance
............................
298,809,336
—
—
298,809,336
IT
Services
...........................
390,060,000
—
—
390,060,000
Media
...............................
321,793,860
—
—
321,793,860
Metals
&
Mining
.......................
176,962,500
—
—
176,962,500
Multi-Utilities
..........................
2,068,065,000
—
—
2,068,065,000
Oil,
Gas
&
Consumable
Fuels
.............
3,169,681,380
—
—
3,169,681,380
Personal
Products
.....................
—
454,062,485
—
454,062,485
Pharmaceuticals
.......................
3,147,405,000
737,703,701
—
3,885,108,701
15.
Fair
Value
Measurements
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
141
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Semiconductors
&
Semiconductor
Equipment
.
$
899,298,840
$
—
$
—
$
899,298,840
Specialty
Retail
........................
299,330,000
—
—
299,330,000
Tobacco
.............................
516,670,000
84,000,831
—
600,670,831
Wireless
Telecommunication
Services
.......
—
286,984,394
—
286,984,394
Equity-Linked
Securities
...................
—
13,422,511,379
—
13,422,511,379
Convertible
Preferred
Stocks
:
Capital
Markets
........................
100,318,500
—
—
100,318,500
Electric
Utilities
........................
1,386,570,000
—
—
1,386,570,000
Machinery
............................
19,944,000
—
—
19,944,000
Multi-Utilities
..........................
621,769,660
—
—
621,769,660
Thrifts
&
Mortgage
Finance
...............
—
32,937,500
—
32,937,500
Preferred
Stocks
........................
31,480,000
—
—
31,480,000
Convertible
Bonds
.......................
—
291,146,012
—
291,146,012
Corporate
Bonds
........................
—
23,053,507,570
—
23,053,507,570
Senior
Floating
Rate
Interests
...............
—
139,057,189
—
139,057,189
U.S.
Government
and
Agency
Securities
.......
—
6,742,236,330
—
6,742,236,330
Asset-Backed
Securities
..................
—
49,898,124
—
49,898,124
Mortgage-Backed
Securities
................
—
33,387,522
—
33,387,522
Escrows
and
Litigation
Trusts
...............
—
25,849,000
—
25,849,000
Short
Term
Investments
...................
2,102,661,542
22,783,450
—
2,125,444,992
Total
Investments
in
Securities
...........
$29,746,613,995
$46,554,065,478
d
$—
$76,300,679,473
Liabilities:
Other
Financial
Instruments:
Options
written
..........................
$
68,486,000
$
—
$
—
$
68,486,000
Total
Other
Financial
Instruments
.........
$68,486,000
$—
$—
$68,486,000
Franklin
U.S.
Government
Securities
Fund
Assets:
Investments
in
Securities:
e
U.S.
Government
and
Agency
Securities
.......
—
18,928,164
—
18,928,164
Mortgage-Backed
Securities
................
—
3,579,937,354
—
3,579,937,354
Short
Term
Investments
...................
89,394,141
—
—
89,394,141
Total
Investments
in
Securities
...........
$89,394,141
$3,598,865,518
$—
$3,688,259,659
Franklin
Utilities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Construction
&
Engineering
...............
71,955,000
—
—
71,955,000
Diversified
Telecommunication
Services
.....
—
78,368,326
—
78,368,326
Electric
Utilities
........................
3,995,994,606
32,585,242
—
4,028,579,848
Gas
Utilities
..........................
126,563,000
—
—
126,563,000
Independent
Power
and
Renewable
Electricity
Producers
..........................
88,677,000
—
—
88,677,000
Multi-Utilities
..........................
2,129,406,182
181,424,472
—
2,310,830,654
Oil,
Gas
&
Consumable
Fuels
.............
151,114,000
—
—
151,114,000
Water
Utilities
.........................
76,695,000
29,453,276
—
106,148,276
Short
Term
Investments
...................
36,866,244
—
—
36,866,244
Total
Investments
in
Securities
...........
$6,677,271,032
$321,831,316
f
$—
$6,999,102,348
a
Includes
foreign
securities
valued
at
$903,415,314,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
15.
Fair
Value
Measurements
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
142
franklintempleton.com
Semiannual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the period. 
16.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
17.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
b
Includes
foreign
securities
valued
at
$1,980,963,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$117,702,902,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
d
Includes
foreign
securities
valued
at
$2,740,751,402,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
e
For
detailed
categories,
see
the
accompanying
schedule
of
investments.
f
Includes
foreign
securities
valued
at
$243,462,990,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Currency
USD
United
States
Dollar
Selected
Portfolio
ADR
American
Depositary
Receipt
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
LIBOR
London
Inter-Bank
Offered
Rate
NYRS
New
York
Registry
Shares
PIK
Payment-In-Kind
SOFR
Secured
Overnight
Financing
Rate
15.
Fair
Value
Measurements
(continued)
Franklin
Custodian
Funds
Shareholder
Information
143
franklintempleton.com
Semiannual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
CUSTODIAN
FUNDS
Franklin
DynaTech
Fund
Franklin
Focused
Growth
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
(each
a
Fund)
At
an
in-person
meeting
held
on
February
28,
2022
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Custodian
Funds
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
each
Fund
(each
a
Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Funds.
The
Board
acknowledged
the
ongoing
integration
of
the
Legg
Mason
family
of
funds
into
the
FT
family
of
funds
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
recent
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Franklin
Custodian
Funds
Shareholder
Information
144
franklintempleton.com
Semiannual
Report
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
being
a
global
leader
in
stewardship
and
sustainability
and
the
recent
addition
of
a
senior
executive
focused
on
environmental,
social
and
governance
and
climate
control
initiatives.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
November
30,
2021.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
considered
the
performance
returns
for
the
Franklin
Income
Fund
in
comparison
to
the
performance
returns
of
a
customized
peer
group
(Performance
Customized
Peer
Group)
selected
by
the
Manager.
The
Board
further
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund’s
performance
results
is
below.
Franklin
DynaTech
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
multi-cap
growth
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Focused
Growth
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
large-cap
growth
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-
and
five-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Growth
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
multi-cap
growth
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
three-
and
five-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
also
noted
that,
while
below
the
median,
the
Fund’s
three-
and
five-
year
annualized
total
return
was
22.83%
and
20.32%,
respectively.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Income
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
flexible
portfolio
funds.
The
Performance
Customized
Peer
Group
for
the
Fund
included
funds
sorted
by
trailing
12-month
yield
and
set
to
be
top
quartile
(highest
yield).
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
medians
and
in
the
first
quintile
(best)
of
its
Performance
Universe
and
Performance
Customized
Peer
Group.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-
and
10-year
periods
was
above
the
medians
of
its
Performance
Universe
and
Performance
Customized
Peer
Group,
and
for
the
three-
and
five-year
periods
was
below
the
medians
of
its
Performance
Universe
and
Performance
Customized
Peer
Group.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
a
fund’s
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
U.S.
Government
Securities
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
Government
National
Mortgage
Association
(Ginnie
Mae)
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
further
noted
the
Fund’s
conservative
policy
of
investing
substantially
all
of
its
assets
in
Ginnie
Mae
obligations.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
a
fund’s
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Custodian
Funds
Shareholder
Information
145
franklintempleton.com
Semiannual
Report
Franklin
Utilities
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
utility
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-
and
five-year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
three-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
discussed
the
Fund’s
annualized
total
return
performance
with
management
and
management
explained
that
the
Fund
invests
at
least
80%
of
its
net
assets
in
the
securities
of
public
utilities
companies,
whereas
peers
have
less
exposure
to
the
utilities
sector
and
benefitted
from
the
performance
of
their
non-utilities
sector
holdings.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
a
fund’s
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
the
Franklin
Income
Fund,
Franklin
U.S.
Government
Securities
Fund
and
Franklin
Utilities
Fund
and
for
Class
A
shares
for
the
Franklin
DynaTech
Fund
and
Franklin
Growth
Fund
and
for
each
other
fund
in
the
applicable
Expense
Group.
In
addition,
the
actual
total
expense
ratio
was
shown
for
Advisor
Class
shares
for
the
Franklin
Focused
Growth
Fund
and
for
Class
K6
shares,
Class
I
shares,
Class
N
shares,
Class
P
shares,
Class
Z
shares,
Investor
Class
shares
or
Institutional
Class
shares
for
each
other
fund
in
the
Fund’s
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
Franklin
DynaTech
Fund,
Franklin
Growth
Fund,
Franklin
Income
Fund
and
Franklin
Utilities
Fund
–
The
Expense
Group
for
each
of
the
Franklin
DynaTech
Fund
and
Franklin
Growth
Fund
included
the
respective
Fund
and
13
other
multi-cap
growth
funds.
The
Expense
Group
for
the
Franklin
Income
Fund
included
the
Fund
and
13
other
flexible
portfolio
funds.
The
Expense
Group
for
the
Franklin
Utilities
Fund
included
the
Fund
and
six
other
utility
funds.
The
Board
noted
that
the
Management
Rates
and
actual
total
expense
ratios
for
the
Funds
were
below
the
medians
and
in
the
first
quintile
(least
expensive)
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
the
Funds
are
reasonable.
Franklin
Focused
Growth
Fund
–
The
Expense
Group
for
the
Fund
included
the
Fund
and
15
other
large-cap
growth
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
below
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
approximately
six
basis
points
above
the
median
of
its
Expense
Group
and
reflected
a
fee
waiver
from
management.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Franklin
U.S.
Government
Securities
Fund
–
The
Expense
Group
for
the
Fund
included
the
Fund,
five
other
Ginnie
Mae
funds,
and
six
US
mortgage
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
less
than
2
basis
points
above
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
below
the
median
and
in
the
first
quintile
(least
expensive)
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
Franklin
Custodian
Funds
Shareholder
Information
146
franklintempleton.com
Semiannual
Report
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2021,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Funds’
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Funds’
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up
front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Franklin
Focused
Growth
Fund
does
not
have
an
asset
size
that
would
likely
enable
the
Fund
to
achieve
economies
of
scale.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
each
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Franklin
Custodian
Funds
Shareholder
Information
147
franklintempleton.com
Semiannual
Report
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
FCF
S
05/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
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provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
and
Shareholder
Letter
Franklin
Custodian
Funds
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
Item 4.
 Principal Accountant Fees and Services.  N/A
 
 
Item 5. Audit Committee
 
of Listed Registrants.  N/A
 
 
Item 6. Schedule of Investments.          N/A


 
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.   N/A
 
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                         N/A
 
 
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
 
 
Item 10. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
 
Item 11. Controls and Procedures.
 
(a) Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
 
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
 
(b) Changes in Internal Controls
. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected or is reasonably likely to materially affect the internal control over financial reporting.
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                             N/A
 
 
Item 13. Exhibits.
 
(a)(1) Code of Ethics
 
codeofethics
 
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
section302
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
section906
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
FRANKLIN
CUSTODIAN FUNDS
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  May 26, 2022
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  May 26, 2022
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  May 26, 2022
 
Code of Ethics for Principal Executives & Senior Financial Officers
 
 

Procedures
 
Revised December 19, 2014
 
 
 

FRANKLIN TEMPLETON FUNDS

 
CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND SENIOR FINANCIAL OFFICERS

I.
            
Covered Officers and Purpose of the
Code

 
This code of ethics (the "Code") applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the "Covered Officers," each of whom is set forth in Exhibit A) of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission (“SEC”) (collectively, "FT Funds") for the purpose of promoting:
 
·
        
Honest and ethical conduct, including the ethical resolution of actual or apparent conflicts of interest between personal and professional
relationships;
·
        
Full, fair, accurate, timely and understandable disclosure in reports and documents
that a registrant files with, or submits to, the SEC and in other public communications made by or on behalf of the FT
Funds;
·
        
Compliance with applicable laws and governmental rules and
regulations;
·
        
The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code;
and
·
        
Accountability for adherence to the
Code.
 
Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
 
 
 
 
*
Rule
38a-1
under
the Investment
Company
Act
of
1940
(“1940
Act”)
and
Rule
206(4)-7
under
the
Investment
Advisers
Act
of 1940 (“Advisers Act”) (together the “Compliance Rule”) require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws (“Compliance Rule Policies and
Procedures”).
 
CONFIDENTIAL INFORMATION. This document is the proprietary product of Franklin Templeton Investments. It may NOT be distributed outside the company unless it is made subject to a non-disclosure agreement and/or such release receives authorization by an FTI Chief Compliance Officer. Any unauthorized use, reproduction or transfer of this document is strictly prohibited. Franklin Templeton Investments © 2014. All Rights
Reserved.
 

II.
            
Other Policies and
Procedures

 
This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.
 
Franklin Resources, Inc. has separately adopted the Code of Ethics and Business Conduct (“Business Conduct”), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employee’s business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee
policies.
 
Additionally, the Franklin Templeton Funds have separately adopted the FTI Personal Investments and Insider Trading Policy governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.
 
Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds’ adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superceded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to
you.
 

III.
            
Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

 
Overview. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of apposition with the FT Funds.
 
Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as "affiliated persons" of the FT Funds. The FT Funds’ and the investment advisers’ compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.
 
Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or

2


for all three), be involved in establishing policies and implementing decisions that will have different effects on the adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds' Boards of Directors ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.
 
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.
 
Each Covered Officer must:
·
        
Not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the FT Funds whereby the Covered
Officer would benefit personally to the detriment of the FT
Funds;
·
        
Not cause the FT Funds to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the FT
Funds;
·
        
Not retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated persons for reports of potential violations that are made in good
faith;
·
        
Report at least annually the following affiliations or other
relationships:
1
o
   
all directorships for public companies and all companies that are required to file reports with the
SEC;
o
   
any direct or indirect business relationship with any independent directors of
the FT
Funds;
o
   
any direct or indirect business relationship with any independent public accounting firm (which are not related to the routine issues related to the
firm’s service as the Covered Persons accountant);
and
o
   
any direct or indirect interest in any transaction with any FT Fund that will benefit the officer (not including benefits derived from the advisory, sub-advisory, distribution or service agreements with affiliates of Franklin
Resources).
These reports will be reviewed by the Legal Department for compliance with the Code.
There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include
2
:
·
        
Service as a director on the board of any public or private
Company.
 

1
 
Reporting
of
these
affiliations
or
other
relationships
shall
be
made
by
completing
the
annual
Directors
and
Officers
Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General
Counsel.
2
    
Any
activity
or
relationship
that
would
present
a
conflict
for
a
Covered Officer
may
also
present
a
conflict
for
the
Covered Officer
if a member of the Covered Officer's immediate family engages in such an activity or has such a relationship. The Cover Person should also obtain written approval by FT’s General Counsel in such situations.
 

3


·
        
The receipt of any gifts in excess of $100 from any person, from any corporation
or association.
·
        
The receipt of any entertainment from any Company with which the FT Funds has current or prospective business dealings unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise
any question of impropriety. Notwithstanding the foregoing, the Covered Officers must obtain prior approval from the Franklin Resources General Counsel for any entertainment with a value in excess of
$1000.
·
        
Any ownership interest in, or any consulting or employment relationship with, any of
the FT Fund’s service providers, other than an investment adviser, principal underwriter, administrator or any affiliated person
thereof.
·
        
A direct or indirect financial interest in commissions, transaction charges or spreads paid by the FT Funds for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity
ownership.
·
        
Franklin Resources General Counsel or Deputy General Counsel will provide a report
to the FT Funds Audit Committee of any approvals granted at the next regularly scheduled meeting.
 

IV.
            
Disclosure and
Compliance

·
        
Each Covered Officer should familiarize himself with the disclosure
requirements generally applicable to the FT
Funds;
·
        
Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the FT Funds to others, whether within or outside the FT Funds, including to the FT Funds’ directors and auditors, and to governmental
regulators and self-regulatory
organizations;
·
        
Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the FT Funds, the FT Fund’s adviser and the administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the FT Funds file with, or submit to, the SEC and in other public communications made by the FT Funds;
and
·
        
It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and
regulations.
 

V.
            
Reporting and Accountability

 
Each Covered Officer must:
·
        
Upon becoming a covered officer affirm in writing to the Board that he or she has received, read, and understands the Code (see Exhibit
B);
·
        
Annually thereafter affirm to the Board that he has complied with the requirements of
the Code;
and
·
        
Notify Franklin Resources’ General Counsel or Deputy General Counsel promptly if he or she knows of any violation of this Code. Failure to do so is itself is a violation of
this

4


Code.
Franklin Resources’ General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation.
3
 
However, the Independent Directors of the respective FT Funds will consider any approvals or waivers
4
 
sought by any Chief Executive Officers of the Funds.
 
The FT Funds will follow these procedures in investigating and enforcing this Code:
 
·
        
Franklin Resources General Counsel or Deputy General Counsel will take all
appropriate action to investigate any potential violations reported to the Legal
Department;
·
        
If, after such investigation, the General Counsel or Deputy General Counsel believes that no violation has occurred, The General Counsel is not required to take any
further action;
·
        
Any matter that the General Counsel or Deputy General Counsel believes is a
violation will be reported to the Independent Directors of the appropriate FT
Fund;
·
        
If the Independent Directors concur that a violation has occurred, it will inform and make a recommendation to the Board of the appropriate FT Fund or Funds, which will
consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered
Officer;
·
        
The Independent Directors will be responsible for granting waivers, as appropriate;
and
·
        
Any changes to or waivers of this Code will, to the extent required, are disclosed
as provided by SEC
rules.
5

VI.
            
Other Policies and
Procedures

 
This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FTI Personal Investments and Insider Trading Policy, adopted by the FT Funds, FT investment advisers and FT Fund’s principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FT’s Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this
Code.
 
 
 

3
 
Franklin
Resources
General
Counsel
and
Deputy
General
Counsel
are
authorized
to
consult,
as
appropriate,
with
members
of
the Audit
Committee, counsel
to
the
FT
Funds
and
counsel
to
the
Independent
Directors,
and
are
encouraged
to
do
so.
4
  
Item
2
of
Form
N-CSR
defines
"waiver"
as
"the
approval
by
the
registrant
of
a
material
departure
from
a
provision
of
the
code
of
ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant. See Part X.
5
   
See Part
X.

VII.
            
Amendments

 
Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the FT Funds’ Board including a majority of independent directors.

VIII.
            
Confidentiality

 
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds’ Board and their counsel.

IX.
            
Internal
Use

 
The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.
 
X.
           
Disclosure on Form
N-CSR
 
Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.
The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrant's annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this
intention.
The Legal Department shall be responsible for ensuring that:
·
        
a copy of the Code is filed with the SEC as an exhibit to each Fund’s annual report;
and
·
        
any amendments to, or waivers (including implicit waivers) from, a provision of the
Code is disclosed in the registrant's annual report on Form
N-CSR.
In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N-CSR.
In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.

EXHIBIT A

 
Persons Covered by the Franklin Templeton Funds Code of Ethics
January 1, 2022
 
 

FRANKLIN GROUP OF FUNDS

 
Edward
Perks                           President and Chief Executive Officer – Investment Management
Rupert H.
Johnson,
Jr.               Chairman of the Board and Vice
President
Michael
McCarthy                      President and Chief Executive Officer – Investment Management
Sonal Desai,
Ph
D                     President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Christopher Kings                     Chief Financial Officer and Chief Accounting Officer and Treasurer
 
           
 

FRANKLIN MUTUAL SERIES FUNDS

 
Christian K. Correa                    Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and Administration
Christopher Kings                     Chief Financial Officer and Chief Accounting Officer and Treasurer
 
 

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

 
Brooks
Ritchey                          President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Christopher Kings                     Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 

TEMPLETON GROUP OF FUNDS

 
Rupert H.
Johnson
Jr.                Chairman of the Board and Vice
President
Manraj
S.
Sekhon                      President and Chief Executive Officer – Investment Management
Michael Hasenstab, Ph.D.          President and Chief Executive Officer – Investment Management
Alan
Bartlett                              President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Christopher Kings                     Chief Financial Officer, Chief Accounting Officer and Treasurer

Exhibit B ACKNOWLEDGMENT FORM

 

Franklin Templeton Funds Code of Ethics

For Principal Executives and Senior Financial Officers
 
 

Instructions:

1.
     
Complete all sections of this
form.
2.
     
Print the completed form, sign, and
date.
3.
     
Submit completed form to FT’s General Counsel c/o Code of Ethics Administration within 10 days of becoming a Covered Officer and by February 15th of each subsequent year.
 
E-mail:      Code of Ethics Inquiries & Requests (internal address);
lpreclear@franklintempleton.com
(external
address)
 
 
Covered Officer’s Name:
 
Title:
 
Department:
 
Location:
 
Certification for Year Ending:
 
 
 
To: Franklin Resources General Counsel, Legal Department
 
I acknowledge receiving, reading and understanding the Franklin Templeton Fund’s Code of Ethics for Principal Executive Officers and Senior Financial Officers (the “Code”). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary action, including termination of employment.
 
 
 
 

Signature
 
Date signed
 
I, Matthew T. Hinkle, certify that:
 
1.
      
I have reviewed this report on Form N-CSR of Franklin Custodian Funds;
2.
      
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;   
3.
      
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.
      
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 
5.
      
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
5/26/2022
 
 
 
S\MATTHEW T. HINKLE
 
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
 

I, Christopher Kings, certify that:
 
1.
      
I have reviewed this report on Form N-CSR of Franklin Custodian Funds;
2.
      
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;   
3.
      
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.
      
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 
5.
      
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
5/26/2022
 
 
 
S\CHRISTOPHER KINGS
 
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Matthew T. Hinkle, Chief Executive Officer of the Franklin Custodian Funds (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
 
1.
                  
The periodic report on Form N-CSR of the Registrant for the period ended 3/31/2022 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
2.
                  
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  5/26/2022
 
                                                S\MATTHEW T. HINKLE
                                                                                                           
                                                Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
                        

 
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Christopher Kings, Chief Financial Officer of the Franklin Custodian Funds (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
 
1.
                  
The periodic report on Form N-CSR of the Registrant for the period ended 3/31/2022 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
2.
                  
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  5/26/2022
 
                                                S\CHRISTOPHER KINGS
                                                                                                           
                                                Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer