UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

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: 9/30/23

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.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.

Not Applicable

.

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Custodian

Funds

September

30,

2023

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

.

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

or,

if

you

are

a

direct

investor,

enrolling

at

franklintempleton.com.

You

may

access

franklintempleton.com

by

scanning

the

code

below.

franklintempleton.com

Annual

Report

2

Contents

Franklin

DynaTech

Fund

3

Franklin

Focused

Growth

Fund

12

Franklin

Growth

Fund

21

Franklin

Income

Fund

28

Franklin

U.S.

Government

Securities

Fund

35

Franklin

Utilities

Fund

41

Financial

Highlights

and

Schedules

of

Investments

48

Financial

Statements

119

Notes

to

Financial

Statements

129

Report

of

Independent

Registered

Public

Accounting

Firm

155

Tax

Information

156

Special

Meeting

of

Shareholders

157

Board

Members

and

Officers

158

Shareholder

Information

162

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

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

53

.

Franklin

DynaTech

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

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

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+20.80%

total

return

for

the

12

months

ended

September

30,

2023.

1

While

inflation

remained

elevated

in

most

parts

of

the

world,

it

showed

signs

of

slowing

in

the

second

half

of

the

period,

bolstering

equities.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

tighten

monetary

policy,

driving

interest

rates

significantly

higher

and

pressuring

economic

growth.

However,

tightening

eased

as

the

period

continued,

and

investors

foresaw

an

end

to

the

current

monetary

policy

cycle

even

as

growth

continued.

Equity

performance

varied

notably

by

region,

as

changing

economic

conditions

had

a

differential

impact

depending

on

local

circumstances.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

fourth

quarter

of

2022

and

the

first

half

of

2023

amid

rising

investment

and

resilient

spending

on

services.

The

labor

market

was

tight,

as

unemployment

remained

very

low

by

historic

standards

and

wages

continued

to

grow.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

six

times,

ending

at

a

range

of

5.25%–5.50%.

However,

at

two

of

its

meetings,

the

Fed

declined

to

adjust

interest

rates,

indicating

that

the

pace

of

tightening

was

slowing.

Nonetheless,

the

Fed

indicated

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

debt

and

mortgage-backed

security

holdings.

Several

prominent

bank

failures

increased

uncertainty

among

business

confidence

and

stalled

consumer

spending

weighed

on

the

region.

Nonetheless,

inflation

decelerated

significantly,

driving

expectations

that

interest

rate

increases

were

nearing

an

end.

In

the

wake

of

Russian

energy

supply

disruptions,

European

governments

spent

significant

sums

to

subsidize

consumers

and

find

alternative

supplies.

Consequently,

the

price

of

natural

gas

in

Europe

declined

notably,

providing

a

tailwind

for

European

stocks.

The

European

Central

Bank

increased

interest

rates

at

each

of

its

eight

meetings

and

began

to

reduce

its

bond

holdings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

+28.85%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

+16.19%

total

return

for

the

12-month

period.

1

Economic

activity

in

Japan

rebounded

strongly

from

a

contraction

in

the

third

quarter

of

2022,

benefiting

from

improved

net

trade

amid

a

recovery

in

exports.

The

end

of

pandemic-

related

border

controls

in

Japan

helped

bolster

tourism

and

consumer

spending.

On

an

annual

basis,

China’s

economic

growth

picked

up

but

remained

weak

by

historic

standards,

hindered

by

cooling

consumer

demand

and

slowing

exports.

Continued

regulatory

uncertainty

and

weakness

in

the

property

sector

also

negatively

impacted

Chinese

markets.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

+11.70%

total

return

for

the

12

months

under

review.

1

Emerging

market

stocks

are

sensitive

to

interest

rate

changes

in

developed

markets,

and

indications

that

central

banks

were

nearing

the

end

of

their

rate

hiking

cycles

benefited

emerging

markets.

The

declining

value

of

the

U.S.

dollar

relative

to

some

other

currencies

also

boosted

emerging

market

stocks.

Franklin

DynaTech

Fund

4

franklintempleton.com

Annual

Report

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

With

more

than

50

years

of

history

investing

in

innovation,

Franklin

DynaTech

Fund’s

investment

philosophy,

style,

and

process

have

remained

consistent

since

its

inception,

regardless

of

market

conditions.

We

believe

that

innovation

is

the

primary

driver

of

value

creation

in

the

economy,

and

look

to

new

companies,

products,

and

technologies

to

create

long-term

value

for

investors.

Throughout

the

12-month

period

under

review,

our

process

was

guided

by

expectations

for

a

stock

picker’s

market

in

innovation

as

uncompetitive

companies

finally

fail.

In

the

past

few

years,

we

have

seen

tight

correlations

among

higher-revenue

growth

stocks.

In

the

throes

of

the

COVID-19

pandemic,

many

high-growth

companies

appeared

to

benefit,

but

as

we

emerged

from

the

pandemic,

these

same

companies

needed

to

rationalize

their

businesses.

We

believe

that

the

long-term

structural

winners

were

starting

to

sort

themselves

out,

especially

in

the

latter

half

of

the

period.

Multidecade-high

interest

rates

had

an

impact

as

they

accelerated

the

failure

of

unprofitable

tech-oriented

companies

and

reduced

competition.

We

also

sought

out

structurally

profitable

companies

that,

in

our

view,

can

grow

through

the

current

economic

cycle

and

eventually

be

rewarded

with

a

more

benign

competitive

environment

going

forward.

Thematically,

we

saw

investment

opportunities

across

many

industries

and

sought

to

anticipate

the

convergence

of

technology

in

the

physical,

digital

and

biological

spheres.

The

adoption

of

innovation

and

the

invention

of

new

technologies

are

rarely

linear.

Platforms

can

move

forward

faster

than

we

expect,

then

regress.

The

goal

of

owning

a

portfolio

of

innovative

companies,

in

our

view,

is

to

smooth

out

that

spastic

movement.

Based

on

these

convictions,

we

continued

to

invest

in

what

we

believe

are

secularly

growing,

innovative

companies

with

compounding

revenue,

earnings,

free

cash

flow,

and

sustainable

competitive

advantages

over

the

next

three-,

five-

and

10-year

periods,

according

to

our

analysis.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+25.47%

cumulative

total

return

for

the

12

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

+27.72%.

1

Also

for

comparison,

the

broad

U.S.

stock

market,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

)

designed

to

measure

total

U.S.

equity

market

performance,

posted

a

+21.62%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

8

.

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.

Q.

What

were

the

leading

contributors

to

performance?

A.

In

absolute

terms,

eight

of

the

Fund’s

10

equity

sector

allocations

were

net

contributors

for

the

12

months

under

review.

Information

technology

(IT)

sector

stocks

covered

roughly

half

of

the

portfolio

and

provided

the

bulk

of

the

overall

returns,

led

by

a

robust

advance

in

the

semiconductors

and

semiconductor

equipment

industry.

While

most

of

these

investments

posted

exceptional,

double-

digit

percentage

returns,

NVIDIA—our

largest

position

in

the

industry—was

an

upside

outlier

among

them

as

its

share

value

more

than

tripled,

and

it

provided

nearly

a

quarter

of

the

Fund’s

overall

return.

Corporate

earnings

were

a

factor,

but

not-as-bad-as-feared

forward

guidance,

inventory

digestion,

and

nascent

optimism

about

a

rebound

in

semiconductor

sales

helped

drive

gains.

In

general,

a

wave

of

investor

interest

and

heightened

trading

around

machine

learning

(ML)

technology—a

branch

of

artificial

intelligence

Portfolio

Composition

9/30/23

%

of

Total

Net

Assets

Software

29.8%

Semiconductors

&

Semiconductor

Equipment

19.3%

Broadline

Retail

7.7%

Interactive

Media

&

Services

5.1%

Financial

Services

5.0%

Life

Sciences

Tools

&

Services

4.7%

Health

Care

Equipment

&

Supplies

4.4%

Automobiles

3.2%

IT

Services

3.2%

Technology

Hardware,

Storage

&

Peripherals

2.2%

Pharmaceuticals

1.9%

Capital

Markets

1.8%

Energy

Equipment

&

Services

1.6%

Health

Care

Providers

&

Services

1.4%

Other

*

8.0%

Short-Term

Investments

&

Other

Net

Assets

0.7%

*

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Franklin

DynaTech

Fund

5

franklintempleton.com

Annual

Report

(AI)

that

enables

computers

to

emulate

how

humans

learn

and

adapt

by

using

data

and

experience—ignited

rallies

in

several

notable

Fund

contributors

pursuing

both

themes,

including

semiconductor

industry

players

situated

at

the

core

of

ML/AI

computing

power.

NVIDIA

was

widely

seen

as

being

a

key

recipient

of

future

investment

in

this

arena.

NVIDIA’s

hardware

originally

made

a

name

for

itself

powering

high-

end

video

game

graphics,

but

in

recent

years

the

company’s

bet

on

AI

and

ML

has

begun

to

pay

off.

Machines

require

massive

amounts

of

information

and

computer

power

to

learn,

and

NVIDIA’s

GPUs

(graphics

processing

units)

are

well-suited

for

the

task.

The

company

has

emerged

as

a

technological

leader

in

the

space

as

it

continued

to

advance

its

next-generation

chip

circuitry

amid

an

expanding

client

base

and

skyrocketing

demand

for

its

GPUs

used

in

AI

applications.

NVIDIA

consistently

generates

operating

profit

margins

well

into

double-digit

percentages,

all

the

while

spending

heavily

on

new

research

and

development.

Among

our

other,

lesser

contributors

in

this

industry

were

ASML

Holding

and

Lam

Research.

ASML,

a

Dutch

developer

of

advanced

semiconductor

equipment

systems

(including

lithography,

metrology

and

inspection

systems

for

complex

integrated

circuits),

upgraded

its

long-term

outlook

despite

a

soft

market

in

2022,

while

its

financial

earnings

report

generally

showed

surprising

strength

throughout

the

period

under

review.

ASML

raised

its

outlook

for

2025

by

about

30%

above

the

figures

it

had

projected

one

year

ago—reassuring

given

the

industry’s

recent

downcycle.

ASML

also

guided

for

continued

growth

to

2030,

citing

a

brighter

outlook

for

AI

and

edge

computing

data

centers,

as

well

as

the

metaverse,

which

emerged

as

a

big

concept

a

year

ago.

Most

of

our

software

industry

holdings

also

enjoyed

a

boom

year

including

key

contributors

Microsoft,

ServiceNow,

Synopsys,

Cadence

Design

Systems

and

HubSpot.

In

particular,

ServiceNow

compared

well

against

its

infrastructure

and

application

software

peers.

The

demand

environment

remained

positive

for

ServiceNow

as

its

products

help

customers

reduce

costs

through

the

automation

of

critical

processes.

Tech

bellwether

Microsoft,

meanwhile,

often

exceeded

analysts’

consensus

estimates

on

revenue

and

earnings

amidst

solid

gains

in

areas

like

intelligent

cloud

services,

cybersecurity

and

server

products,

while

spending

on

AI

and

LLMs

(large

language

models)—

underscored

by

its

integration

of

OpenAI’s

ChatGPT

into

new

search

and

“copilot”

productivity

tools—continues

to

ramp

up.

Despite

its

size

and

age,

our

analysis

indicates

Microsoft

displays

adaptability

as

a

prominent

consolidator

in

this

phase

of

digital,

cloud,

AI,

and

vendor

consolidation.

In

our

view,

we

believe

that

the

company’s

strategy

is

working

as

it

looks

set

to

carve

out

potential

upside

from

cloud

and

generative

AI

in

the

years

ahead.

In

the

financial

services

sector,

tech-focused

capital

markets

stocks

were

a

distinct

area

of

strength

as

all

four

related

holdings

increased

solidly,

as

did

Mastercard

and

Visa

in

the

financial

services

industry.

Mastercard

and

Visa,

which

offer

similar

dividends,

essentially

shared

a

duopoly

in

the

payment

card

arena

and

continued

to

offer

what

we

believe

to

be

an

excellent

combination

of

safety,

income

and

growth

potential,

which

is

rare

in

the

fintech

industry.

They

are

also

less

cyclical

than

traditional

banks

as

they

operate

more

like

communications

platforms

that

connect

various

parties

of

a

transaction,

collecting

a

fee

every

time

one

of

their

cards

is

used.

This

lucrative

operating

model

has

led

to

high

net

income

margins.

This

business

has

also

served

as

a

hedge

against

the

high

inflation

we

have

been

seeing

for

nearly

two

years

now.

If

customers

have

to

pay

more

for

basic

items

like

food

or

gas,

or

even

for

discretionary

purchases,

and

if

they

use

their

Mastercard

or

Visa,

the

companies

will

benefit

by

generating

greater

fees.

More

recently,

as

travel

demand

has

seen

a

resurgence,

both

companies’

cross-border

volume

fees

jumped

in

late

2022

and

that

momentum

carried

over

into

the

first

nine

months

of

2023.

To

a

lesser

extent,

the

Fund’s

other

key

areas

of

sector-

level

strength

were

in

health

care,

led

by

advanced

medical

technology

equipment

makers

such

as

Intuitive

Surgical

(robotic

systems

for

minimally

invasive

surgeries);

communication

services,

led

by

tech

conglomerate

Alphabet

(Google)

in

the

interactive

media

and

services

industry;

and

industrials,

where

Axon

Enterprise

and

other

aerospace

and

defense-related

companies

traded

solidly

higher.

Our

much

smaller

stake

in

energy

sector

investments

also

appreciated

solidly

as

Schlumberger

and

other

oilfield

services

tracked

a

big

rally

in

crude

oil

prices.

Mixed

results

in

the

consumer

discretionary

sector,

meanwhile,

were

led

higher

by

e-commerce

holdings

MercadoLibre

and

Amazon.com.

Q.

What

were

the

leading

detractors

from

performance?

A.

During

the

12

months

under

review,

detractors

were

comparatively

mild

and

concentrated

in

the

beleaguered

utilities

and

real

estate

sectors,

both

of

which

suffered

from

the

effects

of

higher

interest

rates.

Their

impact

was

mitigated

by

their

relatively

small

allocation

sizes

in

the

portfolio

(when

combined,

they

averaged

just

over

2%

of

total

net

assets),

with

losses

in

utilities

focused

on

a

solitary

position

in

NextEra

Energy,

while

the

losses

in

real

estate

were

focused

on

tech-oriented

REITs

(real

estate

investment

trusts)

like

SBA

Communications.

We

eventually

liquidated

all

of

the

Fund’s

real

estate

holdings,

but

not

before

they

had

already

collectively

shed

about

a

fifth

of

their

equity

value.

Franklin

DynaTech

Fund

6

franklintempleton.com

Annual

Report

The

rest

of

the

major

detractors

served

to

reduce

overall

gains

in

other

sectors,

none

more

so

than

electric

vehicle

(EV)

and

battery

manufacturer

Tesla,

which

saw

volatile

trading

throughout

the

year

and

hurt

our

results

in

the

consumer

discretionary

sector.

Although

Tesla

reported

financial

pressures

tied

to

earnings,

profitability

and

price

cuts

amid

its

attempts

to

stimulate

demand

as

car

loans

got

more

expensive

to

finance,

the

company

did

report

encouraging

growth

in

its

vehicle

production

and

deliveries

and

was

finally

expected

to

start

making

Cybertruck

(EV

pickup

truck)

deliveries

in

late

2023—four

years

after

it

was

unveiled.

Amid

mixed

results

in

the

health

care

sector,

the

Fund’s

investments

in

life

sciences

tools

and

services

companies

failed

to

advance,

as

did

a

smaller

allocation

in

the

health

care

providers

and

services

industry.

The

group

of

companies

focused

on

life

sciences

tools

and

diagnostics,

including

Repligen

(bioprocessing

solutions

for

the

development

and

manufacture

of

plasmid

DNA,

viral

vectors,

mRNA

and

other

new

modalities)

and

Danaher

(medical/

industrial

products

including

mass

spectrometers

and

microarray

scanners),

underperformed

this

year

for

multiple

reasons

including

tough

COVID-19

comparisons

(inventory

destocking,

CDMO

capacity

normalization,

etc.),

higher

interest

rates

impacting

biotechnology

company

budgets,

softer

pharmaceutical

spending,

weakening

business

prospects

in

China,

and

general

macroeconomic

concerns.

However,

there

are

many

more

reasons

to

be

optimistic

in

the

longer

term

especially

in

areas

such

as

bioprocessing,

which

we

think

should

benefit

from

innovation

happening

in

GLP-1

(glucagon-like

peptide

1

agonists,

a

class

of

type

2

diabetes

drugs

that

not

only

improves

blood

sugar

control

but

may

also

lead

to

weight

loss),

Alzheimer’s

and

biosimilars

to

name

just

a

few.

The

rest

of

the

notable

detractors

were

concentrated

in

the

IT

sector,

most

notably

in

the

software

industry

where

12

out

of

35

holdings

posted

negative

returns.

These

included

Atlassian,

CrowdStrike

Holdings,

Aspen

Technology

and

Gitlab

(sold

by

period-end).

In

particular,

project

management

software

specialist

Atlassian’s

equity

value

fell

back

to

levels

not

seen

in

three

years

as

the

quarterly

results

were

mediocre

at

best,

while

guidance

fell

below

consensus

analyst

projections

as

the

company

was

seeing

free-to-paid

subscription

conversions

slowing

in

a

more

uncertain

macro

environment.

Atlassian

also

began

to

see

a

slowdown

in

existing

customers

expanding

deployments

as

layoffs

(and

hiring

freezes)

accelerated

and

IT

budgets

faced

greater

scrutiny,

which

we

view

as

the

bigger

challenge.

Despite

the

muted

results

and

guidance,

the

company’s

trailing

sales

have

more

than

doubled

since

the

end

of

2019,

it

keeps

generating

healthy

cash

flow,

and

we

still

believe

there

is

strength

in

Atlassian’s

business

model

and

competitive

position.

In

the

semiconductor

space,

companies

that

specialize

in

chips,

inverters

and

other

equipment

designed

for

solar/

renewable

energy

systems

fared

poorly.

We

selectively

reduced

or

eliminated

the

portfolio’s

stakes

in

energy

transition

names

given

our

concerns

about

demand

trends

in

the

sector,

including

Enphase

Energy

(not

held

at

period-

end)

and

SolarEdge

Technologies

(not

held

at

period-end)—

both

of

which

operate

in

the

U.S.

residential

solar

market.

After

a

period

of

excitement

arising

from

the

passing

of

infrastructure-focused

stimulus

initiatives

in

the

U.S.,

many

of

the

companies

in

the

alternative

energy

sector

reversed

course.

Rising

rates

have

caused

concern

about

higher

financing

costs

and

access

to

capital,

resulting

in

slower

adoption

and

growth.

Enphase

develops

and

manufactures

solar

micro-inverters,

battery

energy

storage,

and

EV

charging

stations.

The

company

has

seen

softening

U.S.

demand,

thereby

reducing

visibility

on

orders

and

leading

some

investors

to

question

the

prospects

of

potentially

extended

inventories

amid

reduced

battery

sales.

We

believe

the

slowdown

in

Enphase’s

residential

demand

is

mostly

a

function

of

higher

interest

rates,

which

has

rendered

the

company’s

financed

systems

as

no

longer

an

immediate

money

saver

in

key

states

like

Texas

and

Florida

(and

which

may

cause

some

consumers

to

go

elsewhere

if

they

opt

for

a

leased

home

solar

system).

The

company

also

faced

some

regulatory

headwinds

in

California.

Although

we

take

these

considerations

seriously,

and

the

shares

have

declined

Top

10

Holdings

9/30/23

Company

Industry,

Country

%

of

Total

Net

Assets

a

a

NVIDIA

Corp.

8.5%

Semiconductors

&

Semiconductor

Equipment,

United

States

Microsoft

Corp.

6.7%

Software,

United

States

Amazon.com,

Inc.

6.5%

Broadline

Retail,

United

States

Alphabet,

Inc.

4.2%

Interactive

Media

&

Services,

United

States

Mastercard,

Inc.

3.4%

Financial

Services,

United

States

ServiceNow,

Inc.

3.3%

Software,

United

States

Tesla,

Inc.

3.2%

Automobiles,

United

States

Synopsys,

Inc.

2.9%

Software,

United

States

Cadence

Design

Systems,

Inc.

2.7%

Software,

United

States

Intuit,

Inc.

2.6%

Software,

United

States

Franklin

DynaTech

Fund

7

franklintempleton.com

Annual

Report

meaningfully

over

the

past

year,

we

still

think

Enphase

could

regain

momentum

as

it

remains

a

best-in-class

business

in

solar

energy

given

the

longer-term

demand

scenario

for

devices

and

systems

that

meter,

distribute

and

store

solar/

photovoltaic

energy.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

Based

on

market

appreciation,

some

reallocation,

and

a

reduction

in

the

Fund’s

cash

position,

the

portfolio’s

exposure

to

IT

companies

increased

substantially.

We

also

trimmed

the

Fund’s

health

care

holdings

mainly

in

the

life

sciences

tools

and

services

industry,

where

depreciation

further

reduced

our

overall

stake

in

it.

We

also

divested

the

Fund’s

positions

in

REITs

and

chemical

manufacturers

as

we

sought

to

deploy

proceeds

into

other

investment

themes;

as

a

result,

the

Fund

had

no

longer

had

any

holdings

in

the

real

estate

or

materials

sectors

by

period-end.

Most

of

our

other

allocations

were

fairly

static

throughout

the

year

though

we

did

see

an

uptick

in

energy-related

holdings

with

a

series

of

new

purchases

in

the

oilfield

services

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

September

30,

2023,

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

September

30,

2023

Franklin

DynaTech

Fund

8

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

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

9/30/23

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

1-Year

+25.47%

+18.57%

5-Year

+50.47%

+7.30%

10-Year

+237.52%

+12.30%

Advisor

1-Year

+25.79%

+25.79%

5-Year

+52.38%

+8.79%

10-Year

+246.10%

+13.22%

See

page

10

for

Performance

Summary

footnotes.

Franklin

DynaTech

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(9/30/13–9/30/23)

Advisor

Class

(9/30/13–9/30/23)

See

page

10

for

Performance

Summary

footnotes.

Franklin

DynaTech

Fund

Performance

Summary

10

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries,

it

is

subject

to

increased

volatility

.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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.

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%.

5.

Source:

FactSet.

The

Russell

1000

®

Growth

Index

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

1000

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rate.

The

S&P

500

®

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

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.

Total

Annual

Operating

Expenses

6

Share

Class

A

0.82%

Advisor

0.57%

Your

Fund’s

Expenses

Franklin

DynaTech

Fund

11

franklintempleton.com

Annual

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

183/365

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

4/1/23

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,069.00

$4.15

$1,021.06

$4.05

0.80%

C

$1,000

$1,065.10

$8.03

$1,017.30

$7.84

1.55%

R

$1,000

$1,067.70

$5.44

$1,019.80

$5.32

1.05%

R6

$1,000

$1,070.80

$2.44

$1,022.72

$2.38

0.47%

Advisor

$1,000

$1,070.30

$2.86

$1,022.31

$2.79

0.55%

12

franklintempleton.com

Annual

Report

Franklin

Focused

Growth

Fund

This

annual

report

for

Franklin

Focused

Growth

Fund

covers

the

fiscal

year

ended

September

30,

2023.

At

a

meeting

held

on

June

30,

2023,

shareholders

of

Franklin

Focused

Growth

Fund

(the

“Fund”)

approved

the

reorganization

of

the

Fund

into

a

newly-created

exchange

traded

fund,

Franklin

Focused

Growth

ETF

(“Franklin

Focused

Growth

ETF”),

a

series

of

Franklin

Templeton

ETF

Trust

(the

“Reorganization”).

The

Reorganization

occurred

as

of

the

close

of

business

on

November

3,

2023

(the

“Closing

Date”).

Effective

as

of

the

close

of

business

on

November

3,

2023,

the

Fund

ceased

operations

in

connection

with

the

consummation

of

the

Reorganization.

Because

the

Fund

is

the

accounting

survivor

of

the

Reorganization,

Franklin

Focused

Growth

ETF

will

continue

to

show

the

historical

investment

performance

and

financial

history

of

the

Fund.

In

connection

with

the

Reorganization,

each

Fund

shareholder

(except

as

noted

below)

received

shares

of

Franklin

Focused

Growth

ETF

equal

in

value

to

the

number

of

shares

of

the

Fund

they

owned

on

the

Closing

Date,

including

a

cash

payment

in

lieu

of

any

fractional

shares.

Fund

Shareholders

who

did

not

have

a

brokerage

account

that

could

accept

shares

of

Franklin

Focused

Growth

ETF

prior

to

November

3,

2023,

generally

have

the

ETF

shares

received

in

the

Reorganization

held

on

their

behalf

by

Equiniti

Trust

Company,

LLC

(formerly

known

as

American

Stock

Transfer

&

Trust

Company,

LLC)

in

a

default

trustee

account.

Fund

Shareholders

who

held

their

shares

with

Fiduciary

Trust

International

of

the

South

(FTIOS)

as

the

custodian

and

did

not

open

a

brokerage

account

and

transfer

their

Fund

shares

into

it

before

the

close

of

market

on

October

6,

2023,

had

their

Fund

shares

exchanged

by

FTIOS

for

Class

A

Shares

of

Franklin

U.S.

Government

Money

Fund.

Holders

of

Franklin

Templeton

403(b)

accounts

who

did

not

exchange

their

Fund

shares

for

shares

of

another

mutual

fund

available

to

their

Franklin

Templeton

403(b)

account

or

redeem

their

Fund

shares

before

October

2,

2023,

had

their

Fund

shares

exchanged

into

Class

A

shares

of

Franklin

U.S.

Government

Money

Fund.

Holders

of

Franklin

Templeton

Solo(k)

accounts

who

did

not

exchange

their

Fund

shares

for

shares

of

another

mutual

fund

available

to

their

Franklin

Templeton

Solo(k)

account

or

redeem

their

Fund

shares

before

October

2,

2023,

had

their

Fund

shares

exchanged

into

Class

R

shares

of

Franklin

U.S.

Government

Money

Fund.

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

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.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+20.80%

total

return

for

the

12

months

ended

September

30,

2023.

1

While

inflation

remained

elevated

in

most

parts

of

the

world,

it

showed

signs

of

slowing

in

the

second

half

of

the

period,

bolstering

equities.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

tighten

monetary

policy,

driving

interest

rates

significantly

higher

and

pressuring

economic

growth.

However,

tightening

eased

as

the

period

continued,

and

investors

foresaw

an

end

to

the

current

monetary

policy

cycle

even

as

growth

continued.

Equity

performance

varied

notably

by

region,

as

changing

economic

conditions

had

a

differential

impact

depending

on

local

circumstances.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

fourth

quarter

of

2022

and

the

first

half

of

2023

amid

rising

investment

and

resilient

spending

on

services.

The

labor

market

was

tight,

as

unemployment

remained

very

low

by

historic

standards

and

wages

continued

to

grow.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

six

times,

ending

at

a

range

of

5.25%–5.50%.

However,

at

two

of

its

meetings,

the

Fed

declined

to

adjust

interest

rates,

indicating

that

the

pace

of

tightening

was

slowing.

Nonetheless,

the

Fed

indicated

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

debt

and

mortgage-backed

security

holdings.

Several

prominent

bank

failures

increased

uncertainty

among

investors,

but

government

intervention

led

to

swift

reorganizations

and

equities

recovered

from

a

brief

decline.

Economic

growth

in

the

eurozone

was

tepid

during

the

period,

as

higher

interest

rates,

declining

business

confidence

and

stalled

consumer

spending

weighed

on

the

region.

Nonetheless,

inflation

decelerated

significantly,

driving

expectations

that

interest

rate

increases

were

nearing

Franklin

Focused

Growth

Fund

13

franklintempleton.com

Annual

Report

an

end.

In

the

wake

of

Russian

energy

supply

disruptions,

European

governments

spent

significant

sums

to

subsidize

consumers

and

find

alternative

supplies.

Consequently,

the

price

of

natural

gas

in

Europe

declined

notably,

providing

a

tailwind

for

European

stocks.

The

European

Central

Bank

increased

interest

rates

at

each

of

its

eight

meetings

and

began

to

reduce

its

bond

holdings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

+29.69%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

+16.19%

total

return

for

the

12-month

period.

1

Economic

activity

in

Japan

rebounded

strongly

from

a

contraction

in

the

third

quarter

of

2022,

benefiting

from

improved

net

trade

amid

a

recovery

in

exports.

The

end

of

pandemic-

related

border

controls

in

Japan

helped

bolster

tourism

and

consumer

spending.

On

an

annual

basis,

China’s

economic

growth

picked

up

but

remained

weak

by

historic

standards,

hindered

by

cooling

consumer

demand

and

slowing

exports.

Continued

regulatory

uncertainty

and

weakness

in

the

property

sector

also

negatively

impacted

Chinese

markets.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

+11.70%

total

return

for

the

12

months

under

review.

1

Emerging

market

stocks

are

sensitive

to

interest

rate

changes

in

developed

markets,

and

indications

that

central

banks

were

nearing

the

end

of

their

rate

hiking

cycles

benefited

emerging

markets.

The

declining

value

of

the

U.S.

dollar

relative

to

some

other

currencies

also

boosted

emerging

market

stocks.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

The

Fund’s

investment

philosophy,

style,

and

process

have

remained

consistent

since

its

inception,

regardless

of

market

conditions.

We

believe

that

innovation

is

the

primary

driver

of

value

creation

in

the

economy,

and

look

to

new

companies,

products,

and

technologies

to

create

long-term

value

for

investors.

Throughout

the

12-month

period

under

review,

our

process

was

guided

by

expectations

for

a

stock

picker’s

market

in

innovation

as

uncompetitive

companies

finally

fail.

In

the

past

few

years,

we

have

seen

tight

correlations

among

higher-revenue

growth

stocks.

In

the

throes

of

the

COVID-19

pandemic,

many

high-growth

companies

appeared

to

benefit,

but

as

we

emerged

from

the

pandemic,

these

same

companies

needed

to

rationalize

their

businesses.

We

believe

that

the

long-term

structural

winners

were

starting

to

sort

themselves

out,

especially

in

the

latter

half

of

the

period.

Multidecade-high

interest

rates

had

an

impact

as

they

accelerated

the

failure

of

unprofitable

tech-oriented

companies

and

reduced

competition.

We

also

sought

out

structurally

profitable

companies

that,

in

our

view,

can

grow

through

the

current

economic

cycle

and

eventually

be

rewarded

with

a

more

benign

competitive

environment

going

forward.

Thematically,

we

saw

investment

opportunities

across

many

industries

and

sought

to

anticipate

the

convergence

of

technology

in

the

physical,

digital

and

biological

spheres.

The

adoption

of

innovation

and

the

invention

of

new

technologies

are

rarely

linear.

Platforms

can

move

forward

faster

than

we

expect,

then

regress.

The

goal

of

owning

a

portfolio

of

innovative

companies,

in

our

view,

is

to

smooth

out

that

spastic

movement.

Based

on

these

convictions,

we

continued

to

invest

in

what

we

believe

are

secularly

growing,

innovative

companies

with

compounding

revenue,

earnings,

free

cash

flow,

and

sustainable

competitive

advantages

over

the

next

three-,

five-

and

10-year

periods,

according

to

our

analysis.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+28.24%

cumulative

total

return

for

the

12

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

+27.72%.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

17

.

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.

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

61

.

Franklin

Focused

Growth

Fund

14

franklintempleton.com

Annual

Report

Q.

What

were

the

leading

contributors

to

performance?

A.

In

absolute

terms,

eight

of

the

Fund’s

11

equity

sector

allocations

were

net

contributors

for

the

12

months

under

review.

Information

technology

(IT)

sector

stocks

covered

more

than

two-fifths

of

the

portfolio

and

provided

the

bulk

of

the

overall

returns,

led

by

a

robust

advance

in

the

semiconductors

and

semiconductor

equipment

industry.

While

some

of

these

investments

posted

exceptional,

double-digit

percentage

returns,

NVIDIA—our

largest

position

in

the

industry—was

an

upside

outlier

among

them

as

its

share

value

more

than

tripled,

and

it

provided

more

than

a

third

of

the

Fund’s

overall

return.

Corporate

earnings

were

a

factor,

but

not-as-bad-as-feared

forward

guidance,

inventory

digestion,

and

nascent

optimism

about

a

rebound

in

semiconductor

sales

helped

drive

gains.

In

general,

a

wave

of

investor

interest

and

heightened

trading

around

machine

learning

(ML)

technology—a

branch

of

artificial

intelligence

(AI)

that

enables

computers

to

emulate

how

humans

learn

and

adapt

by

using

data

and

experience—

ignited

rallies

in

several

notable

Fund

contributors

pursuing

both

themes,

including

semiconductor

industry

players

situated

at

the

core

of

ML/AI

computing

power.

NVIDIA

was

widely

seen

as

being

a

key

recipient

of

future

investment

in

this

arena.

NVIDIA’s

hardware

originally

made

a

name

for

itself

powering

high-end

video

game

graphics,

but

in

recent

years

the

company’s

bet

on

AI

and

ML

has

begun

to

pay

off.

Machines

require

massive

amounts

of

information

and

computer

power

to

learn,

and

NVIDIA’s

GPUs

(graphics

processing

units)

are

well-suited

for

the

task.

The

company

has

emerged

as

a

technological

leader

in

the

space

as

it

continued

to

advance

its

next-generation

chip

circuitry

amid

an

expanding

client

base

and

skyrocketing

demand

for

its

GPUs

used

in

AI

applications.

NVIDIA

consistently

generates

operating

profit

margins

well

into

double-digit

percentages,

all

the

while

spending

heavily

on

new

research

and

development.

Among

our

other,

lesser

contributors

in

this

industry

were

ASML

Holding

and

Analog

Devices.

ASML,

a

Dutch

developer

of

advanced

semiconductor

equipment

systems

(including

lithography,

metrology

and

inspection

systems

for

complex

integrated

circuits),

upgraded

its

long-term

outlook

despite

a

soft

market

in

2022,

while

its

financial

earnings

report

generally

showed

surprising

strength

throughout

the

period

under

review.

ASML

raised

its

outlook

for

2025

by

about

30%

above

the

figures

it

had

projected

one

year

ago—reassuring

given

the

industry’s

recent

downcycle.

ASML

also

guided

for

continued

growth

to

2030,

citing

a

brighter

outlook

for

AI

and

edge

computing

data

centers,

as

well

as

the

metaverse,

which

emerged

as

a

big

concept

a

year

ago.

Most

of

our

software

industry

holdings

also

enjoyed

a

boom

year

including

key

contributors

Microsoft,

ServiceNow,

Cadence

Design

Systems

(purchased

during

the

period)

and

Salesforce.

In

particular,

ServiceNow

compared

well

against

its

infrastructure

and

application

software

peers.

The

demand

environment

remained

positive

for

ServiceNow

as

its

products

help

customers

reduce

costs

through

the

Portfolio

Composition

9/30/23

%

of

Total

Net

Assets

Software

24.2%

Semiconductors

&

Semiconductor

Equipment

17.9%

Broadline

Retail

10.5%

Interactive

Media

&

Services

8.4%

Automobiles

5.4%

Consumer

Staples

Distribution

&

Retail

5.3%

Health

Care

Equipment

&

Supplies

4.9%

Financial

Services

4.9%

Life

Sciences

Tools

&

Services

4.4%

Pharmaceuticals

3.1%

IT

Services

2.7%

Electric

Utilities

1.6%

Capital

Markets

1.3%

Energy

Equipment

&

Services

1.2%

Other

*

4.5%

Short-Term

Investments

&

Other

Net

Assets

(0.3)%

*

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Top

10

Holdings

9/30/23

Company

Industry,

Country

%

of

Total

Net

Assets

a

a

Microsoft

Corp.

10.9%

Software,

United

States

NVIDIA

Corp.

9.1%

Semiconductors

&

Semiconductor

Equipment,

United

States

Amazon.com,

Inc.

9.1%

Broadline

Retail,

United

States

Tesla,

Inc.

5.4%

Automobiles,

United

States

Costco

Wholesale

Corp.

5.3%

Consumer

Staples

Distribution

&

Retail,

United

States

Alphabet,

Inc.

4.9%

Interactive

Media

&

Services,

United

States

Mastercard

,

Inc.

4.9%

Financial

Services,

United

States

Cadence

Design

Systems,

Inc.

4.4%

Software,

United

States

ServiceNow

,

Inc.

4.2%

Software,

United

States

ASML

Holding

NV

3.7%

Semiconductors

&

Semiconductor

Equipment,

Netherlands

Franklin

Focused

Growth

Fund

15

franklintempleton.com

Annual

Report

automation

of

critical

processes.

Tech

bellwether

Microsoft,

meanwhile,

often

exceeded

analysts’

consensus

estimates

on

revenue

and

earnings

amidst

solid

gains

in

areas

like

intelligent

cloud

services,

cybersecurity

and

server

products,

while

spending

on

AI

and

LLMs

(large

language

models)—

underscored

by

its

integration

of

OpenAI’s

ChatGPT

into

new

search

and

“copilot”

productivity

tools—continues

to

ramp

up.

Despite

its

size

and

age,

our

analysis

indicates

Microsoft

displays

adaptability

as

a

prominent

consolidator

in

this

phase

of

digital,

cloud,

AI,

and

vendor

consolidation.

We

believe

the

company’s

strategy

is

working

as

it

looks

set

to

carve

out

potential

upside

from

cloud

and

generative

AI

in

the

years

ahead.

To

a

much

lesser

extent,

our

health

care

allocation

also

contained

several

stocks

that

rallied

sharply,

none

more

so

than

pharmaceutical

giant

Eli

Lilly.

Returns

in

the

sector

were

further

boosted

by

advanced

medical

technology

equipment

makers

such

as

Intuitive

Surgical

(robotic

systems

for

minimally

invasive

surgeries),

as

well

as

IDEXX

Laboratories,

which

sells

next-generation

products

and

services

in

the

companion

animal

veterinary,

livestock

and

poultry,

water

testing,

and

dairy

markets.

The

Fund’s

other

key

areas

of

sector-level

strength

included

financials,

as

Mastercard

and

tech-focused

capital

markets

firm

MSCI

(a

leading

provider

of

critical

decision

support

tools

and

services

for

the

global

investment

community)

traded

substantially

higher.

Mastercard,

known

for

its

dominating

presence

in

the

payment

card

arena,

continued

to

offer

an

excellent

combination

of

safety,

dividend

income

and

growth

potential,

which

is

rare

in

the

fintech

industry.

It

is

also

less

cyclical

than

traditional

banks

as

it

operates

more

like

a

communications

platform

that

connects

various

parties

of

a

transaction,

collecting

a

fee

every

time

one

of

its

cards

is

used.

This

lucrative

operating

model

has

led

to

high

net

income

margins.

Mastercard’s

business

has

also

served

as

a

hedge

against

the

high

inflation

we

have

been

seeing

for

nearly

two

years

now.

If

customers

have

to

pay

more

for

basic

items

like

food

or

gas,

or

even

for

discretionary

purchases,

and

if

they

use

their

Mastercard,

the

company

will

benefit

by

generating

greater

fees.

More

recently,

as

travel

demand

has

seen

a

resurgence,

Mastercard’s

cross-

border

volume

fees

jumped

in

late

2022

and

that

momentum

carried

over

into

the

first

nine

months

of

2023.

Smaller

allocations

in

communication

services,

consumer

staples,

industrials,

materials

and

energy

also

advanced

during

the

period

under

review.

Communication

services

gains

were

led

by

tech

conglomerate

Alphabet

(Google)

in

the

interactive

media

and

services

industry,

while

Costco

Wholesale

provided

all

of

the

net

gain

in

consumer

staples.

There

were

only

two

holdings

in

the

industrials

sector;

both

traded

higher

including

a

huge

12-month

gain

for

key

contributor

Axon

Enterprise,

which

develops

technology

(e.g.,

body

cameras

and

law

enforcement

networking

software)

and

weapons

(e.g.,

TASER

electroshock

devices

and

other

sublethal

weapons)

for

military,

law

enforcement

and

civilians.

Our

much

smaller

stake

in

commodity-linked

materials

and

energy

sector

investments

also

appreciated

solidly—diversified

metals

and

mining

company

Freeport-

McMoRan

benefited

from

rising

prices

for

a

wide

range

of

precious

and

industrial

metals

including

iron

ore

and

copper,

while

two

newly-initiated

holdings

in

oilfield

services

and

energy

conglomerates

tracked

rallying

crude

oil

prices

during

the

time

in

which

they

were

held

by

the

Fund.

Mixed

results

in

the

consumer

discretionary

sector,

meanwhile,

were

aided

by

e-commerce

holdings

MercadoLibre

and

Amazon.com.

Q.

What

were

the

leading

detractors

from

performance?

A.

During

the

12

months

under

review,

detractors

were

comparatively

mild,

with

some

concentration

in

the

utilities

and

real

estate

sectors,

both

of

which

suffered

from

the

effects

of

higher

interest

rates.

Their

impact

was

mitigated

by

their

relatively

small

allocation

sizes

in

the

portfolio

(when

combined,

they

averaged

just

under

6%

of

total

net

assets),

with

losses

in

utilities

focused

on

a

solitary

position

in

NextEra

Energy,

while

the

losses

in

real

estate

were

focused

on

tech-oriented

REIT

(real

estate

investment

trust)

SBA

Communications.

We

eventually

liquidated

the

Fund’s

investment

in

SBA

Communications

holdings,

but

not

before

it

had

already

shed

about

a

fifth

of

its

equity

value.

In

the

consumer

discretionary

sector,

the

gains

associated

with

MercadoLibre

and

Amazon

were

more

than

offset

by

the

selloff

in

electric

vehicle

(EV)

and

battery

manufacturer

Tesla,

which

saw

volatile

trading

throughout

the

year.

Although

Tesla

reported

financial

pressures

tied

to

earnings,

profitability

and

price

cuts

amid

its

attempts

to

stimulate

demand

as

car

loans

got

more

expensive

to

finance,

the

company

did

report

encouraging

growth

in

its

vehicle

production

and

deliveries

and

was

finally

expected

to

start

making

Cybertruck

(EV

pickup

truck)

deliveries

in

late

2023—four

years

after

it

was

unveiled.

The

rest

of

the

major

detractors

served

to

reduce

our

overall

gains

in

other

sectors.

Within

health

care,

all

three

investments

in

the

life

sciences

tools

and

services

companies

failed

to

advance,

as

did

a

smaller

allocation

in

the

health

care

providers

and

services

industry.

The

group

of

companies

focused

on

life

sciences

tools

and

diagnostics,

including

Repligen

(bioprocessing

solutions

for

the

development

and

manufacture

of

plasmid

DNA,

viral

vectors,

mRNA

and

other

new

modalities;

sold

by

Franklin

Focused

Growth

Fund

16

franklintempleton.com

Annual

Report

period-end)

and

Danaher

(medical/industrial

products

including

mass

spectrometers

and

microarray

scanners),

underperformed

this

year

for

multiple

reasons

including

tough

COVID-19

comparisons

(inventory

destocking,

CDMO

capacity

normalization,

etc.),

higher

interest

rates

impacting

biotechnology

company

budgets,

softer

pharmaceutical

spending,

weakening

business

prospects

in

China,

and

general

macroeconomic

concerns.

However,

there

are

many

more

reasons

to

be

optimistic

in

the

longer

term

especially

in

areas

such

as

bioprocessing,

which

we

think

should

benefit

from

innovation

happening

in

GLP-1

(glucagon-like

peptide

1

agonists,

a

class

of

type

2

diabetes

drugs

that

not

only

improves

blood

sugar

control

but

may

also

lead

to

weight

loss),

Alzheimer’s

and

biosimilars

to

name

just

a

few.

The

rest

of

the

notable

detractors

were

concentrated

in

the

IT

sector,

where

five

out

of

17

stocks

traded

lower

including

Atlassian

in

software,

Enphase

Energy

in

semiconductors

and

semi

equipment,

and

Snowflake

in

IT

services;

all

three

holdings

were

sold

by

period-end.

In

particular,

project

management

software

specialist

Atlassian’s

equity

value

fell

back

to

levels

not

seen

in

three

years

as

the

quarterly

results

were

mediocre

at

best,

while

guidance

fell

below

consensus

analyst

projections

as

the

company

was

seeing

free-to-paid

subscription

conversions

slowing

in

a

more

uncertain

macro

environment.

Atlassian

also

began

to

see

a

slowdown

in

existing

customers

expanding

deployments

as

layoffs

(and

hiring

freezes)

accelerated

and

IT

budgets

faced

greater

scrutiny,

which

we

view

as

the

bigger

challenge.

In

the

semiconductor

space,

companies

that

specialize

in

chips,

inverters

and

other

equipment

designed

for

solar/

renewable

energy

systems

fared

poorly

beginning

in

early

2023,

including

Enphase

Energy,

which

operates

in

the

U.S.

residential

solar

market.

After

a

period

of

excitement

arising

from

the

passing

of

infrastructure-focused

stimulus

initiatives

in

the

United

States,

many

companies

in

the

alternative

energy

sector

reversed

course.

Rising

rates

have

caused

concern

about

higher

financing

costs

and

access

to

capital,

resulting

in

slower

adoption

and

growth.

Enphase

develops

and

manufactures

solar

micro-inverters,

battery

energy

storage,

and

EV

charging

stations.

The

company

has

seen

softening

U.S.

demand,

thereby

reducing

visibility

on

orders

and

leading

some

investors

to

question

the

prospects

of

potentially

extended

inventories

amid

reduced

battery

sales.

We

believe

the

slowdown

in

Enphase’s

residential

demand

was

mostly

a

function

of

higher

interest

rates,

which

has

rendered

the

company’s

financed

systems

as

no

longer

an

immediate

money

saver

in

key

states

like

Texas

and

Florida

(and

which

may

cause

some

consumers

to

go

elsewhere

if

they

opt

for

a

leased

home

solar

system).

The

company

also

faced

some

regulatory

headwinds

in

California.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

Based

on

market

appreciation,

some

reallocation,

and

a

reduction

in

the

Fund’s

cash

position,

the

portfolio’s

exposure

to

IT

companies

increased

substantially.

We

also

trimmed

the

Fund’s

health

care

holdings

mainly

in

the

life

sciences

tools

and

services

industry,

where

depreciation

further

reduced

our

overall

stake

in

it.

We

also

divested

the

Fund’s

positions

in

REITs

and

chemical

manufacturers

as

we

sought

to

deploy

proceeds

into

other

investment

themes;

as

a

result,

the

Fund

had

no

longer

had

any

holdings

in

the

real

estate

or

materials

sectors

by

period-end.

Most

of

our

other

allocations

were

fairly

static

throughout

the

year,

though

we

did

see

an

uptick

in

energy-related

holdings

with

a

series

of

new

purchases

in

the

oilfield

services

industry.

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

September

30,

2023,

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

September

30,

2023

Franklin

Focused

Growth

Fund

17

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

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

9/30/23

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

1-Year

+28.24%

+28.24%

5-Year

+54.79%

+9.13%

Since

Inception

(4/13/16)

5

+166.18%

+14.01%

Advisor

1-Year

+28.55%

+28.55%

5-Year

+56.80%

+9.41%

Since

Inception

(4/13/16)

5

+171.29%

+14.30%

See

page

19

for

Performance

Summary

footnotes.

Franklin

Focused

Growth

Fund

Performance

Summary

18

franklintempleton.com

Annual

Report

See

page

19

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/13/16–9/30/23)

Advisor

Class

(4/13/16–9/30/23)

Franklin

Focused

Growth

Fund

Performance

Summary

19

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries

,

it

is

subject

to

increased

volatility.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

Active

management

does

not

ensure

gains

or

protect

against

market

declines.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

de-

terminative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

01/31/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

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.

Source:

FactSet.

The

Russell

1000

Growth

Index

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.

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.

Total

Annual

Operating

Expenses

7

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

20

franklintempleton.com

Annual

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

183/365

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

Beginnin

g

Account

Value

4/1/23

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,084.60

$5.73

$1,019.57

$5.55

1.10%

C

$1,000

$1,080.80

$9.66

$1,015.78

$9.36

1.85%

R

$1,000

$1,082.90

$7.06

$1,018.29

$6.84

1.35%

Advisor

$1,000

$1,085.60

$4.46

$1,020.80

$4.32

0.85%

21

franklintempleton.com

Annual

Report

Franklin

Growth

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

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.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

fourth

quarter

of

2022

and

the

first

half

of

2023

amid

rising

investment

and

resilient

spending

on

services.

The

labor

market

was

tight,

as

unemployment

remained

very

low

by

historic

standards

and

wages

continued

to

grow.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

six

times,

ending

at

a

range

of

5.25%–5.50%.

However,

at

two

of

its

meetings,

the

Fed

declined

to

adjust

interest

rates,

indicating

that

the

pace

of

tightening

was

slowing.

Nonetheless,

the

Fed

indicated

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

debt

and

mortgage-backed

security

holdings.

Several

prominent

bank

failures

increased

uncertainty

among

investors,

but

government

intervention

led

to

swift

reorganizations

and

equities

recovered

from

a

brief

decline.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

The

Franklin

Growth

Fund

has

always

been

a

fully

diversified

portfolio

of

high-quality

growth

companies

that

can

be

owned

for

a

very

long

time.

Given

the

Fund’s

more

conservative

approach,

over

the

period

it

performed

as

was

expected

in

2022,

protecting

more

on

the

downside

than

its

peers.

On

the

flip

side,

in

2023

the

recent

narrow

bull

market

in

a

handful

of

tech

companies

has

worked

to

our

disadvantage.

Historically

narrow

markets

are

not

healthy,

and

we

believe

the

Fund

is

well

positioned

given

its

breadth

of

industry

exposures

for

whatever

economic

environment

is

forthcoming.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+20.43%

cumulative

total

return

for

the

12

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

+21.62%

cumulative

total

return.

1

The

Fund’s

new

secondary

benchmark,

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

+27.72%.

1

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.

Q.

What

were

the

leading

contributors

to

performance?

A.

During

the

12

months

under

review,

it

was

the

Fund’s

allocation

effect

that

helped

overall

relative

returns.

Underweightings

in

the

financials,

consumer

staples

and

consumer

discretionary

sectors

benefited

relative

performance.

In

the

consumer

discretionary

sector,

an

underweight

in

the

poorly

performing

shares

of

Tesla

delivered

strong

relative

results.

The

electric

vehicle

manufacturer

faced

many

headwinds

over

the

period

including

raw

materials

inflation

and

affordability

challenges

in

a

rising

rate

environment.

On

an

individual

stock

basis,

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

68

.

Franklin

Growth

Fund

22

franklintempleton.com

Annual

Report

the

biggest

contributors

to

relative

returns

were

NVIDIA

and

ServiceNow

in

the

information

technology

(IT)

sector

and

Eli

Lilly

and

Intuitive

Surgical

in

the

health

care

sector.

Chipmaker

NVIDIA

and

digital

workflow

provider

ServiceNow

benefited

from

broader

equity

market

gains

over

the

period

as

well

as

the

rapid

adoption

of

artificial

intelligence

(AI).

In

the

case

of

NVIDIA,

the

firm’s

market

cap

reached

$1

trillion

in

May

2023

on

the

back

of

strong

demand

for

AI

products.

Pharmaceutical

giant

Eli

Lilly

&

Company

had

several

drugs

driving

its

growth

along

with

a

promising

pipeline

focused

on

diabetes/obesity,

immunology,

oncology,

and

neuroscience.

Robotic

surgical

systems

manufacturer

Intuitive

Surgical

saw

improved

sales

of

its

DaVinci

machines

as

patient

procedure

growth

reached

pre-COVID-19

levels.

Q.

What

were

the

leading

detractors

from

performance?

A.

Leading

detractors

over

the

period

included

the

industrials,

communication

services

and

energy

sectors.

Stock

selection

and

an

overweight

in

the

aerospace

and

defense

industry

had

a

negative

impact

on

relative

performance

in

the

industrials

sector.

Within

the

sector,

elevated

inflation,

supply-chain

delays

and

labor

shortages

were

challenges

for

defense

contractor

Northrop

Grumman.

While

financials

were

an

overall

contributor

at

the

sector

level,

the

Fund’s

investments

in

Charles

Schwab

and

Adyen

hindered

relative

performance.

Stock

market

volatility

and

rising

interest

rates

weighed

on

the

shares

of

brokerage

giant

Charles

Schwab,

while

competition

and

increasing

operating

expenses

were

drags

on

the

shares

of

payment

processor

Adyen.

Manufacturing

issues,

slowing

biotech

spending

and

tough

COVID-19

comparisons

weighed

on

the

shares

of

Catalent

in

the

health

care

sector,

which

was

the

biggest

relative

detractor

over

the

period.

Elsewhere,

in

the

IT

sector,

BILL

Holdings

was

among

the

Fund’s

five

biggest

relative

detractors.

The

shares

of

the

financial

software

provider

were

pressured

by

a

pullback

in

spending

by

small-

and

mid-sized

businesses

due

to

macroeconomic

uncertainty,

which

hindered

payment

volume

growth.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

We

reduced

some

of

our

larger

technology

names

and

trimmed

various

industrial

positions

that

had

grown

into

larger

positions

as

valuations

were

at

the

high

end

and

we

became

increasingly

concerned

about

the

impact

of

an

economic

slowdown.

We

also

reduced

or

exited

several

small

tail

positions

where

we

were

concerned

that

higher

interest

rates

may

impact

on

their

ability

to

grow

or

where

their

profit

profile

has

been

pushed

out.

Some

of

those

positions

included

Proterra,

Gitlab,

Olaplex

Holdings,

Lucid

Group,

Guardant

Health

and

10x

Genomics.

Portfolio

Composition

9/30/23

%

of

Total

Net

Assets

Software

18.4%

Semiconductors

&

Semiconductor

Equipment

8.9%

Life

Sciences

Tools

&

Services

6.1%

Technology

Hardware,

Storage

&

Peripherals

4.7%

Financial

Services

4.6%

Pharmaceuticals

4.5%

Aerospace

&

Defense

4.4%

Capital

Markets

4.1%

Health

Care

Equipment

&

Supplies

4.1%

Interactive

Media

&

Services

3.7%

Machinery

3.7%

Broadline

Retail

3.7%

Beverages

3.4%

Ground

Transportation

3.4%

Other

*

21.7%

Short-Term

Investments

&

Other

Net

Assets

0.6%

*

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Top

10

Holdings

9/30/23

Company

Industry,

Country

%

of

Total

Net

Assets

a

a

Microsoft

Corp.

5.7%

Software,

United

States

Apple,

Inc.

4.7%

Technology

Hardware,

Storage

&

Peripherals,

United

States

Alphabet,

Inc.

3.7%

Interactive

Media

&

Services,

United

States

Amazon.com,

Inc.

3.7%

Broadline

Retail,

United

States

NVIDIA

Corp.

3.6%

Semiconductors

&

Semiconductor

Equipment,

United

States

Eli

Lilly

&

Co.

3.0%

Pharmaceuticals,

United

States

Mastercard,

Inc.

2.4%

Financial

Services,

United

States

Intuit,

Inc.

2.4%

Software,

United

States

ServiceNow,

Inc.

2.3%

Software,

United

States

Union

Pacific

Corp.

1.9%

Ground

Transportation,

United

States

Franklin

Growth

Fund

23

franklintempleton.com

Annual

Report

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

Joyce

Lin,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

September

30,

2023,

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.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

September

30,

2023

Franklin

Growth

Fund

24

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

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

9/30/23

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

1-Year

+20.43%

+13.81%

5-Year

+50.58%

+7.31%

10-Year

+203.81%

+11.12%

Advisor

1-Year

+20.73%

+20.73%

5-Year

+52.49%

+8.81%

10-Year

+211.52%

+12.03%

See

page

26

for

Performance

Summary

footnotes.

Franklin

Growth

Fund

Performance

Summary

25

franklintempleton.com

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(9/30/13–9/30/23)

Advisor

Class

(9/30/13–9/30/23)

See

page

26

for

Performance

Summary

footnotes.

Franklin

Growth

Fund

Performance

Summary

26

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries,

it

is

subject

to

increased

volatility.

Large-capitalization

companies

may

fall

out

of

favor

with

investors

based

on

market

and

economic

conditions.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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.

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%.

5.

Source:

FactSet.

The

S&P

500

®

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

The

Russell

1000

®

Growth

Index

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

1000

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rate.

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

(10/1/22–9/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

–

$10.7138

$10.7138

C

–

$10.7138

$10.7138

R

–

$10.7138

$10.7138

R6

$0.2521

$10.7138

$10.9659

Advisor

$0.1571

$10.7138

$10.8709

Total

Annual

Operating

Expenses

6

Share

Class

A

0.80%

Advisor

0.55%

Your

Fund’s

Expenses

Franklin

Growth

Fund

27

franklintempleton.com

Annual

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

183/365

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

4/1/23

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,031.60

$3.98

$1,021.15

$3.96

0.78%

C

$1,000

$1,027.90

$7.79

$1,017.39

$7.75

1.53%

R

$1,000

$1,030.40

$5.25

$1,019.89

$5.23

1.03%

R6

$1,000

$1,033.40

$2.39

$1,022.72

$2.38

0.47%

Advisor

$1,000

$1,032.90

$2.71

$1,022.40

$2.70

0.53%

28

franklintempleton.com

Annual

Report

Franklin

Income

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

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.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

The

Fund

generated

positive

returns

during

the

period

with

strong

performance

from

both

equity

and

fixed

income

holdings.

Equity

holdings

outperformed

fixed

income

returns

during

the

period.

Relative

to

the

Fund’s

blended

benchmark,

the

overweight

allocation

to

credit

supported

absolute

performance.

Throughout

the

period,

the

Federal

Reserve

(Fed)

continued

to

increase

interest

rates

from

2022

levels

to

counteract

stubborn

inflation.

Despite

the

Fed’s

hawkish

stance,

the

labor

market

remains

tight,

and

the

economy

continues

to

grow

with

gross

domestic

product

in

excess

of

2%.

The

Fund

used

interest

rate

futures

to

hedge

duration

in

the

period.

However,

this

did

not

cause

the

change

to

Net

Assets

from

Operations

for

the

fiscal

year

to

exceed

5%.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

The

Fund

entered

the

period

with

an

equity

weighting

of

42.6%

and

a

fixed

income

weighting

of

56.2%

(while

holding

0.7%

in

cash

equivalents).

As

interest

rates

rose

during

the

period,

the

Fund

took

advantage

of

higher

yield

investment

opportunities

within

fixed

income

and

ended

the

period

with

a

considerable

shift

in

asset

allocation.

By

period-end,

equity

allocation

was

35.9%

and

fixed

income

allocation

reached

63.3%,

while

cash

equivalents

comprised

0.65%

of

the

Fund.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

cumulative

total

return

of

+8.33%

for

the

12

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

+21.62%

cumulative

total

return.

1

The

Blended

Benchmark

which

consists

of

50%

MSCI

USA

High

Dividend

Yield

Index

+

25%

Bloomberg

High

Yield

Very

Liquid

Index

+

25%

Bloomberg

U.S.

Aggregate

Bond

Index,

which

is

a

combination

of

leading

stock

and

bond

indexes,

posted

a

+9.18%

cumulative

total

return.

2

Individually,

the

MSCI

USA

High

Dividend

Yield

Index,

which

is

based

on

the

MSCI

USA

Index,

its

parent

index,

and

includes

large-

and

mid-

capitalization

stocks,

posted

a

+12.62%

cumulative

total

return,

the

Bloomberg

High

Yield

Very

Liquid

Index,

designed

to

track

a

more

liquid

component

of

the

USD-denominated,

high

yield,

fixed-rate

corporate

bond

market,

posted

a

+10.32%

cumulative

total

return

and

the

Bloomberg

U.S.

Aggregate

Bond

Index,

which

measures

the

performance

of

the

investment-grade,

U.S.

dollar-denominated,

fixed-

rate

taxable

bond

market,

posted

a

+0.64%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

30

.

The

Fund

was

able

to

successfully

meet

its

monthly

distributions

under

its

managed

distribution

policy

without

the

return

of

capital

and

without

reducing

the

Fund’s

net

asset

value

per

share

due

to

making

distributions

in

excess

of

total

return

performance.

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.

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

79

.

Franklin

Income

Fund

29

franklintempleton.com

Annual

Report

Q.

What

were

the

leading

contributors

to

performance?

A.

Equity

holdings

contributed

the

highest

returns

to

the

Fund

during

the

12

months

under

review,

led

by

the

information

technology

(IT),

energy,

and

industrials

sectors.

Cisco

Systems

performed

best

within

IT,

while

Chevron

and

Exxon

Mobil

contributed

the

highest

absolute

performance

within

the

energy

sector.

Siemens

was

a

top

performer

within

the

industrials

sector.

As

of

period

end,

the

Fund

no

longer

holds

Siemens.

Fixed

income

allocation

also

performed

well

during

the

period

under

review,

with

the

health

care,

consumer

discretionary,

and

industrials

sectors

contributing

the

highest

absolute

returns.

Within

health

care,

Community

Health

Systems

and

Tenet

Healthcare

performed

best,

while

Ford

and

Boeing

contributed

within

the

consumer

discretionary

and

industrials

sectors,

respectively.

Q.

What

were

the

leading

detractors

from

performance?

A.

Due

to

the

sector’s

interest

rate

sensitivity,

the

utilities

sector

was

the

only

detractor

from

stock

performance

during

the

12-month

period

under

review.

Dominion

Energy

and

NextEra

Energy

were

the

worst

performers

within

utilities,

while

Truist

detracted

within

the

financials

sector.

In

terms

of

the

Fund’s

fixed

income

allocation,

U.S.

Treasuries

(UST)

detracted

the

most

from

performance.

Carvana

and

Endo

International

also

detracted

from

Fund

performance

within

the

consumer

discretionary

and

health

care

sectors.

The

Fund

no

longer

holds

a

position

in

Carvana,

as

of

the

period-

end.

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

September

30,

2023,

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.

Portfolio

Composition

9/30/23

%

of

Total

Net

Assets

Corporate

Bonds

48.1%

Common

Stocks

18.7%

Equity-Linked

Securities

17.3%

U.S.

Government

and

Agency

Securities

13.7%

Other

*

0.9%

Short-Term

Investments

&

Other

Net

Assets

1.3%

*

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund’s

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Top

Five

Fixed

Income

Holdings

9/30/23

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

U.S.

Treasury

Notes

11.1%

Financial

Services

,

United

States

CHS/Community

Health

Systems,

Inc.

3.3%

Health

Care

Providers

&

Services

,

United

States

U.S.

Treasury

Bonds

2.6%

Financial

Services

,

United

States

Tenet

Healthcare

Corp.

1.7%

Health

Care

Providers

&

Services

,

United

States

Bausch

Health

Cos.,

Inc.

1.1%

Pharmaceuticals

,

United

States

Top

Five

Equity

Holdings

*

9/30/23

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Chevron

Corp.

1.7%

Oil,

Gas

&

Consumable

Fuels

,

United

States

Bank

of

America

Corp.

1.6%

Banks

,

United

States

Morgan

Stanley

1.5%

Capital

Markets

,

United

States

Texas

Instruments,

Inc.

1.5%

Semiconductors

&

Semiconductor

Equipment

,

United

States

NextEra

Energy,

Inc.

1.2%

Electric

Utilities

,

United

States

*

Includes

convertible

bonds.

Performance

Summary

as

of

September

30,

2023

Franklin

Income

Fund

30

franklintempleton.com

Annual

Report

The

performance

tables

and

graphs

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

9/30/23

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

1-Year

+8.33%

+4.26%

5-Year

+24.75%

+3.73%

10-Year

+60.94%

+4.47%

Advisor

1-Year

+9.16%

+9.16%

5-Year

+27.04%

+4.90%

10-Year

+65.42%

+5.16%

30-Day

Standardized

Yield

7

Share

Class

Distribution

Rate

6

(with

fee

waiver)

(without

fee

waiver)

A

5.53%

4.62%

4.62%

Advisor

6.00%

5.06%

5.05%

See

page

33

for

Performance

Summary

footnotes.

Franklin

Income

Fund

Performance

Summary

31

franklintempleton.com

Annual

Report

See

page

33

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(9/30/13–9/30/23)

Advisor

Class

(9/30/13–9/30/23)

Franklin

Income

Fund

Performance

Summary

32

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Low-rated,

high-yield

bonds

are

subject

to

greater

price

volatility,

illiquidity

and

possibility

of

default.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

Equity

securi-

ties

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

The

manager

may

consider

environmental,

social

and

gover-

nance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

Net

Asset

Value

Share

Class

(Symbol)

9/30/23

9/30/22

Change

A

(FKIQX)

$2.19

$2.14

+$0.05

A1

(FKINX)

$2.20

$2.15

+$0.05

C

(FCISX)

$2.24

$2.18

+$0.06

R

(FISRX)

$2.15

$2.10

+$0.05

R6

(FNCFX)

$2.19

$2.13

+$0.06

Advisor

(FRIAX)

$2.18

$2.12

+$0.06

Distributions

(10/1/22–9/30/23)

Share

Class

Net

Investment

Income

A

$0.1296

A1

$0.1323

C

$0.1200

R

$0.1236

R6

$0.1362

Advisor

$0.1350

Total

Annual

Operating

Expenses

9

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.72%

0.73%

Advisor

0.47%

0.48%

Franklin

Income

Fund

Performance

Summary

33

franklintempleton.com

Annual

Report

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

01/31/2024

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

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

September

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

9/30/23.

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.

Source:

FactSet.

The

S&P

500

®

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

The

Blended

50%

MSCI

USA

High

Dividend

Yield

Index

+

25%

Bloomberg

High

Yield

Very

Liquid

Index

+

25%

Bloomberg

U.S.

Aggregate

Index

measures

performance

of

high

dividend-paying

global

and

developed

and

emerging

stocks,

noninvestment-grade

corporate

bonds

and

tracks

performance

of

the

U.S.

investment-grade

bond

market.

9.

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

34

franklintempleton.com

Annual

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

183/365

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

4/1/23

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$978.80

$3.48

$1,021.55

$3.56

0.70%

A1

$1,000

$983.80

$2.99

$1,022.05

$3.05

0.60%

C

$1,000

$977.30

$5.46

$1,019.55

$5.57

1.10%

R

$1,000

$981.60

$4.73

$1,020.30

$4.82

0.95%

R6

$1,000

$984.50

$1.99

$1,023.07

$2.03

0.40%

Advisor

$1,000

$984.10

$2.25

$1,022.80

$2.29

0.45%

35

franklintempleton.com

Annual

Report

Franklin

U.S.

Government

Securities

Fund

Fund

Overview

Q.

What

is

the

Fund’s

investment

strategy?

A.

We

currently

invest

the

Fund’s

assets

substantially

in

GNMA

obligations.

We

analyze

securities

using

proprietary

models

to

help

us

identify

attractive

investment

opportunities.

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.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

Inflation

levels

and

central

bank

action

remained

the

focus

of

financial

markets

during

the

12-month

period

under

review,

during

which

the

U.S.

Federal

Reserve

(Fed)

continued

its

aggressive

action

to

address

the

decades-

high

levels

of

inflation

in

the

U.S.

The

Fed

took

a

breather

at

its

June

2023

meeting

after

a

15-month

long

rate

hiking

campaign,

followed

by

a

25-basis

point

increase

in

the

fed

funds

target

rate

in

July’s

meeting.

Although

the

Fed

kept

its

policy

rate

unchanged

in

September,

Fed

Chair

Jerome

Powell

stressed

that

the

pause

was

no

indication

that

policy

is

sufficiently

restrictive.

The

UST

yield

curve

shifted

higher

during

the

12-month

period

under

review,

especially

the

shorter

end

of

the

curve,

such

as

the

2-year.

The

yield

curve

remains

inverted,

often

a

sign

of

a

slowing

economy.

Over

the

period,

headline

inflation

measures

moved

significantly

lower

such

that

a

soft-landing

scenario

for

the

U.S.

economy

has

increasingly

become

a

general

market

consensus.

On

the

housing

front,

fundamentals

are

continuing

to

slow

but

remain

supportive;

prepayment

risk

remains

negligible,

and

the

MBS

index

is

near

full

extension

as

macroeconomic

conditions,

particularly

low

unemployment,

remain

relatively

healthy.

Mortgage

rates

increased

60

bps

(6.70%

to

7.31%)

during

the

period

under

review.

With

the

Fed’s

balance

sheet

normalization

plan

underway,

their

share

of

the

agency

MBS

market

will

continue

to

decline,

leaving

approximately

$400

billion

of

MBS

that

will

need

to

be

absorbed,

primarily

by

money

managers,

and

a

combination

of

other

demand

sources

such

as

overseas

investors

and

banks.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

We

moved

from

underweight

to

overweight

2.5%

coupons.

We

added

to

our

overweight

in

3.0%

and

3.5%

coupons.

We

remained

overweight

4.0%

coupons

but

decreased

our

exposure.

Lastly,

we

moved

from

overweight

to

underweight

in

4.5%

coupons.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-0.49%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Bloomberg

U.S.

Government

-

Intermediate

Index,

the

intermediate

component

of

the

Bloomberg

U.S.

Government

Index,

posted

a

+1.33%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

37

.

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.

Q.

What

were

the

leading

contributors

to

performance?

A.

Our

exposure

to

GNMA

I

4.5%

and

5.0%

coupons

were

leading

contributors

to

relative

performance,

as

were

our

allocation

to

GNMA

II

4.0%,

5.0%

and

5.5%

coupons.

Q.

What

were

the

leading

detractors

from

performance?

A.

Our

exposures

to

GNMA

II

2.5%

through

3.5%

coupons

were

lead

detractors

from

performance.

Security

selection

in

GNMA

II

4.0%

through

5.5%

coupons

also

hindered

results.

Portfolio

Composition

9/30/23

%

of

Total

Net

Assets

Mortgage-Backed

Securities

96.5%

Other

*

0.6%

Short-Term

Investments

&

Other

Net

Assets

2.9%

*

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund’s

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

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

109

.

Franklin

U.S.

Government

Securities

Fund

36

franklintempleton.com

Annual

Report

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

Our

largest

allocation

remained

in

2.5-3.5%

coupons,

and

we

decreased

exposure

to

the

middle

of

the

coupon

stack

for

3%

and

4%

coupons,

while

adding

to

higher

5-6%

coupons.

On

a

relative

basis,

we

ended

the

period

overweight

middle

of

the

coupon

stack

(2.5-4%)

with

an

underweight

in

1.5%,

2.0%

and

4.5%

coupons.

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

September

30,

2023,

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

September

30,

2023

Franklin

U.S.

Government

Securities

Fund

37

franklintempleton.com

Annual

Report

The

performance

tables

and

graphs

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

9/30/23

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

1-Year

-0.49%

-4.22%

5-Year

-5.40%

-1.86%

10-Year

-0.33%

-0.41%

Advisor

1-Year

-0.24%

-0.24%

5-Year

-4.10%

-0.83%

10-Year

+1.62%

+0.16%

30-Day

Standardized

Yield

7

Share

Class

Distribution

Rate

6

(with

fee

waiver)

(without

fee

waiver)

A

3.18%

2.61%

2.60%

Advisor

3.54%

2.97%

2.96%

See

page

39

for

Performance

Summary

footnotes.

Franklin

U.S.

Government

Securities

Fund

Performance

Summary

38

franklintempleton.com

Annual

Report

See

page

39

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(9/30/13–9/30/23)

Advisor

Class

(9/30/13–9/30/23)

Franklin

U.S.

Government

Securities

Fund

Performance

Summary

39

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Asset-backed,

mortgage-backed

or

mortgage-related

securities

are

subject

to

prepay-

ment

and

extension

risks.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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

September

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

9/30/23.

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.

Source:

FactSet.

Bloomberg

U.S.

Government

-

Intermediate

Index

is

the

intermediate

component

of

the

Bloomberg

U.S.

Government

Index,

which

includes

U.S.

dol-

lar-denominated,

fixed-rate,

nominal

U.S.

Treasuries

and

U.S.

agency

debentures

(securities

issued

by

U.S.

government-owned

or

government-sponsored

entities,

and

debt

explicitly

guaranteed

by

the

U.S.

government).

9.

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

(10/1/22–9/30/23)

Share

Class

Net

Investment

Income

A

$0.1496

A1

$0.1551

C

$0.1281

R

$0.1370

R6

$0.1672

Advisor

$0.1625

Total

Annual

Operating

Expenses

9

Share

Class

A

0.87%

Advisor

0.62%

Your

Fund’s

Expenses

Franklin

U.S.

Government

Securities

Fund

40

franklintempleton.com

Annual

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

183/365

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

4/1/23

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$956.40

$3.42

$1,021.57

$3.53

0.70%

A1

$1,000

$956.90

$2.90

$1,022.10

$3.00

0.59%

C

$1,000

$953.90

$5.37

$1,019.57

$5.55

1.10%

R

$1,000

$955.20

$4.64

$1,020.32

$4.80

0.95%

R6

$1,000

$956.30

$1.84

$1,023.19

$1.90

0.37%

Advisor

$1,000

$957.80

$2.20

$1,022.83

$2.27

0.45%

41

franklintempleton.com

Annual

Report

Franklin

Utilities

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

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.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

During

the

12-month

period,

technology

stocks

led

equity

prices

higher,

rallying

amid

cost-cutting

efforts

and

investor

optimism

that

artificial

intelligence

(“AI”)

would

lead

to

strong

growth

opportunities.

Utilities,

one

of

only

two

sectors

to

decline

for

the

period,

was

the

worst

sector

performer.

U.S.

gross

domestic

product

(GDP)

expanded

in

the

fourth

quarter

of

2022

and

the

first

half

of

2023

amid

rising

business

investment

and

resilient

consumer

spending

on

services.

The

labor

market

remained

strong

amid

a

high

level

of

nominal

growth,

keeping

U.S.

unemployment

very

low

by

historic

standards.

Inflation

declined

substantially

but

remained

elevated

throughout

(and

rebounded

slightly

at

period

end).

Rising

wages

and

lower

inflation

bolstered

consumer

confidence,

contributing

to

increased

spending

and

economic

growth.

Nonetheless,

continued

tightness

in

the

labor

market

led

to

concern

that

high

interest

rates

would

persist

for

some

time.

High

interest

rates

translated

to

elevated

borrowing

costs

for

individuals

and

businesses,

which

dampened

some

economic

activity,

especially

in

the

housing

and

financial

markets.

In

its

efforts

to

reduce

inflation,

the

U.S.

Federal

Reserve

(Fed)

restricted

monetary

policy

during

the

period,

raising

the

federal

funds

target

rate

six

times

to

a

range

of

5.25%–5.50%,

pushing

borrowing

costs

to

their

highest

levels

since

2001.

However,

at

two

of

its

meetings,

the

Fed

declined

to

adjust

interest

rates,

indicating

that

the

pace

of

tightening

was

slowing.

Toward

the

end

of

the

period,

investor

risk

appetite

soured

as

it

became

clearer

that

the

Fed

intends

to

hold

interest

rates

higher

for

longer

than

investors

had

previously

expected,

and

markets

gave

back

some

of

their

gains.

The

S&P

500

®

Utilities

Index

declined

for

the

period.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

We

maintain

a

philosophy

of

focusing

on

high-quality,

regulated

utilities

that

offer

above-average

risk-adjusted

returns

within

the

portfolio.

While

we

are

always

aware

of

market

conditions

and

act

accordingly,

the

emphasis

on

our

bottom-up

approach

enables

us

to

select

companies

that

are

structurally

sound

and

able

to

weather

a

range

of

macroeconomic

conditions.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-4.55%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

S&P

500

®

Utilities

Index,

which

measures

the

performance

of

all

utilities

stocks

in

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-7.02%

cumulative

total

return,

and

the

S&P

500

®

Index,

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+21.62%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

44

.

The

Fund

was

able

to

successfully

meet

its

monthly

distributions

under

its

managed

distribution

policy

without

the

return

of

capital

and

without

reducing

the

Fund’s

net

asset

value

per

share

due

to

making

distributions

in

excess

of

total

return

performance.

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

.

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

117

.

Franklin

Utilities

Fund

42

franklintempleton.com

Annual

Report

Q.

What

were

the

leading

contributors

to

performance?

A.

The

Fund

performed

better

than

the

benchmark

during

the

12-month

period

under

review.

At

the

industry

level,

within

the

utilities

sector,

multi-utilities

and

independent

power

and

renewable

electricity

producers

were

the

largest

contributors

to

relative

performance,

driven

by

stock

selection.

Selection

in

electric

utilities

also

added

value.

The

Fund

managers

maintain

a

small

weighting

in

the

energy

sector,

and

that

exposure

also

made

a

meaningful

contribution

to

relative

returns.

The

top

overall

individual

contributors

included

off-benchmark

holdings

Vistra

and

E.ON,

as

well

as

an

underweight

to

NextEra.

Vistra,

a

Texas-based

power

producer

and

retail

energy

provider,

benefited

from

earnings

that

exceeded

consensus

expectations,

supported

by

the

company’s

hedging

strategy,

as

well

as

warm

summer

weather

and

heat

waves

in

Texas

and

other

Southern

states.

The

company’s

US

$6.8

billion

acquisition

of

Energy

Harbor

(not

a

fund

holding),

which

will

allow

a

deeper

push

into

nuclear

energy,

appeared

to

be

on

track

for

completion

in

2023,

though

it

may

be

delayed

as

the

companies

work

to

alleviate

the

U.S.

Department

of

Justice’s

anti-competitive

concerns.

Our

underweight

to

Florida-based

electric

utility

NextEra

Energy

contributed

to

performance

relative

to

the

benchmark

S&P

500

®

Utilities

Index

as

its

shares

posted

a

double-digit

decline

for

the

period.

Shares

declined

amid

concerns

about

demand

for

solar

energy

and

rising

interest

rates,

as

investors

were

disappointed

by

slowing

net

income

growth

at

its

renewable

energy

subsidiary,

given

weaker

pricing

for

solar

panels

and

batteries.

Shares

of

Germany-based

energy

giant

E.ON

advanced

sharply

despite

disruptions

in

European

energy

markets

driven

by

the

Russia-Ukraine

war.

E.ON’s

focus

on

crisis

management

execution

helped

the

company

surpass

earnings

expectations,

and

strong

guidance

for

2023

supported

investor

sentiment,

as

did

its

plans

to

accelerate

decarbonization

and

energy

transition

initiatives

and

infrastructure

expansion

plans

though

2027.

Q.

What

were

the

leading

detractors

from

performance?

A.

At

the

industry

level,

stock

selection

in

gas

utilities

detracted

the

most

from

relative

performance,

while

positioning

in

water

utilities

and,

in

the

energy-related

group,

the

diversified

telecommunications

industry

weighed

modestly

on

relative

results

during

the

12-month

period

under

review.

The

largest

individual

detractors

were

all

underweight

positions:

Constellation

Energy,

Consolidated

Edison

and

Duke

Energy.

Shares

of

Maryland-based

electric

utility

Constellation

Energy,

which

was

spun

out

of

Exelon

in

2022

and

is

a

major

U.S.

nuclear

operator,

advanced

sharply

as

earnings

surpassed

expectations

and

full-year

guidance

was

strong.

A

$1

billion

stock

repurchase

program,

announced

in

February

2023,

also

supported

the

stock.

New

York-based

multi-utility

Consolidated

Edison

followed

a

similar

script,

as

shares

advanced

for

the

period

on

the

strength

of

strong

earnings

and

an

accelerated

share

buyback,

though

the

shares’

12-month

advance

was

much

more

modest.

Duke

Energy,

which

operates

electric

utilities

throughout

the

Midwest

and

South,

also

detracted

on

a

relative

basis.

The

company’s

shares

posted

a

modest

decline

for

the

period

but

fared

better

than

the

benchmark.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

During

the

12-month

period,

the

Fund

managers

exited

a

number

of

positions

in

the

portfolio

to

create

more

concentration

amongst

our

holdings

in

which

the

managers

hold

greater

conviction.

Among

our

liquidations

are

two

Portfolio

Composition

9/30/23

%

of

Total

Net

Assets

Electric

Utilities

57.5%

Multi-Utilities

30.4%

Oil,

Gas

&

Consumable

Fuels

4.4%

Independent

Power

and

Renewable

Electricity

Producers

3.5%

Construction

&

Engineering

1.5%

Water

Utilities

1.4%

Other

*

0.8%

Short-Term

Investments

&

Other

Net

Assets

0.5%

*

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Top

10

Holdings

9/30/23

Company

Industry,

Country

%

of

Total

Net

Assets

a

a

NextEra

Energy,

Inc.

9.9%

Electric

Utilities,

United

States

Southern

Co.

(The)

5.2%

Electric

Utilities,

United

States

Edison

International

4.9%

Electric

Utilities,

United

States

Sempra

4.5%

Multi-Utilities,

United

States

Exelon

Corp.

4.4%

Electric

Utilities,

United

States

Duke

Energy

Corp.

4.3%

Electric

Utilities,

United

States

Entergy

Corp.

4.0%

Electric

Utilities,

United

States

Evergy,

Inc.

3.8%

Electric

Utilities,

United

States

PG&E

Corp.

3.3%

Electric

Utilities,

United

States

Alliant

Energy

Corp.

3.3%

Electric

Utilities,

United

States

Franklin

Utilities

Fund

43

franklintempleton.com

Annual

Report

Canadian-based

holdings,

Emera

and

Telus

Corporation,

which

the

managers

felt

had

achieved

relatively

high

valuation

premiums

to

U.S.

utility

counterparts.

The

Fund

managers

also

sold

their

position

in

Origin

Energy,

a

multi-

energy

company

based

in

Australia

that

entered

into

an

agreement

to

be

sold

to

a

multi-national

energy

consortium.

The

Fund

managers

also

liquidated

three

smaller-

capitalization

utilities

that

the

managers

felt

were

trading

rich

compared

to

other

utilities

in

the

portfolio:

Black

Hills,

PNM

Resources

and

Southwest

Gas

Holdings.

Finally,

the

managers

liquidated

positions

in

two

energy

infrastructure

companies,

Equitrans

Midstream

and

Knife

River.

The

managers

used

the

proceeds

from

the

various

sales

within

our

portfolio

primarily

to

add

to

existing

positions,

including

Ameren,

CenterPoint

Energy,

Evergy

and

NiSource.

The

managers

believe

each

of

these

companies

are

well-

positioned

utilities

operating

in

solid

service

territories

with

sound

regulatory

oversight.

Ameren

is

based

in

St.

Louis

and

provides

electricity

and

natural

gas

across

Missouri

and

Illinois.

CenterPoint

is

headquartered

in

Houston

and

is

experiencing

above-average

customer

growth

in

its

region.

Evergy

is

based

in

Kansas

City

and

serves

both

Missouri

and

Kansas.

NiSource,

which

is

headquartered

in

Indiana,

provides

both

electric

and

natural

gas

service

across

several

midwestern

states.

The

Fund

managers

feel

each

of

these

companies

offers

an

above-average

return

profile

relative

to

the

average

utility

company.

Thank

you

for

your

continued

participation

in

Franklin

Utilities

Fund.

We

look

forward

to

serving

your

future

investment

needs.

John

Kohli,

CFA

Blair

Schmicker,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

September

30,

2023,

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

September

30,

2023

Franklin

Utilities

Fund

44

franklintempleton.com

Annual

Report

The

performance

tables

and

graphs

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

9/30/23

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

1-Year

-4.55%

-8.13%

5-Year

+31.65%

+4.85%

10-Year

+109.26%

+7.25%

Advisor

1-Year

-4.31%

-4.31%

5-Year

+33.32%

+5.92%

10-Year

+113.61%

+7.89%

Share

Class

Distribution

Rate

6

30-Day

Standardized

Yield

7

A

2.37%

2.91%

Advisor

2.71%

3.29%

See

page

46

for

Performance

Summary

footnotes.

Franklin

Utilities

Fund

Performance

Summary

45

franklintempleton.com

Annual

Report

See

page

46

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(9/30/13–9/30/23)

Advisor

Class

(9/30/13–9/30/23)

Franklin

Utilities

Fund

Performance

Summary

46

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries,

it

is

subject

to

increased

volatility.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

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.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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

current

quarterly

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

9/30/23.

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.

Source:

FactSet.

The

S&P

500

®

Utilities

Index

is

market

capitalization

weighted

and

consists

of

all

utility

stocks

in

the

S&P

500

®

.

The

S&P

500

®

is

a

market

capitaliza-

tion-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

9.

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)

9/30/23

9/30/22

Change

A

(FKUQX)

$18.64

$20.26

-$1.62

A1

(FKUTX)

$18.65

$20.27

-$1.62

C

(FRUSX)

$18.53

$20.14

-$1.61

R

(FRURX)

$18.56

$20.17

-$1.61

R6

(FUFRX)

$18.84

$20.47

-$1.63

Advisor

(FRUAX)

$18.84

$20.47

-$1.63

Distributions

(10/1/22–9/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.4740

$0.3087

$0.7827

A1

$0.4953

$0.3087

$0.8040

C

$0.3903

$0.3087

$0.6990

R

$0.4216

$0.3087

$0.7303

R6

$0.5431

$0.3087

$0.8518

Advisor

$0.5268

$0.3087

$0.8355

Total

Annual

Operating

Expenses

9

Share

Class

A

0.82%

Advisor

0.57%

Your

Fund’s

Expenses

Franklin

Utilities

Fund

47

franklintempleton.com

Annual

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

183/365

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

4/1/23

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

Ending

Account

Value

9/30/23

Expenses

Paid

During

Period

4/1/23–9/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$894.20

$3.92

$1,020.93

$4.18

0.83%

A1

$1,000

$895.20

$3.45

$1,021.43

$3.68

0.73%

C

$1,000

$892.70

$5.81

$1,018.93

$6.20

1.23%

R

$1,000

$893.50

$5.10

$1,019.68

$5.44

1.08%

R6

$1,000

$896.00

$2.32

$1,022.62

$2.48

0.49%

Advisor

$1,000

$895.50

$2.73

$1,022.18

$2.92

0.58%

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$92.78

$157.23

$121.24

$82.84

$81.16

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.38)

(0.64)

(0.82)

(0.38)

(0.20)

Net

realized

and

unrealized

gains

(losses)

...........

24.02

(61.59)

36.81

39.44

3.79

Total

from

investment

operations

....................

23.64

(62.23)

35.99

39.06

3.59

Less

distributions

from:

Net

realized

gains

.............................

—

(2.22)

—

(0.66)

(1.91)

Net

asset

value,

end

of

year

.......................

$116.42

$92.78

$157.23

$121.24

$82.84

Total

return

c

...................................

25.47%

(40.15)%

29.68%

47.47%

4.77%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.83%

0.82%

0.79%

0.85%

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.83%

e

0.82%

e

0.79%

e

0.84%

0.85%

Net

investment

(loss)

............................

(0.35)%

(0.50)%

(0.56)%

(0.39)%

(0.26)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$8,669,145

$7,214,315

$12,129,483

$8,378,574

$4,504,434

Portfolio

turnover

rate

............................

15.29%

40.72%

18.77%

13.82%

20.01%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

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.

Annual

Report

49

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$74.75

$128.06

$99.49

$68.60

$68.07

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.95)

(1.29)

(1.55)

(0.91)

(0.66)

Net

realized

and

unrealized

gains

(losses)

...........

19.29

(49.80)

30.12

32.46

3.10

Total

from

investment

operations

....................

18.34

(51.09)

28.57

31.55

2.44

Less

distributions

from:

Net

realized

gains

.............................

—

(2.22)

—

(0.66)

(1.91)

Net

asset

value,

end

of

year

.......................

$93.09

$74.75

$128.06

$99.49

$68.60

Total

return

c

...................................

24.55%

(40.60)%

28.72%

46.37%

3.97%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.58%

1.57%

1.54%

1.60%

1.61%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.58%

e

1.57%

e

1.54%

e

1.59%

1.60%

Net

investment

(loss)

............................

(1.10)%

(1.26)%

(1.31)%

(1.14)%

(1.01)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$774,154

$715,976

$1,339,016

$1,095,702

$597,927

Portfolio

turnover

rate

............................

15.29%

40.72%

18.77%

13.82%

20.01%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$89.14

$151.52

$117.13

$80.26

$78.88

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.62)

(0.91)

(1.14)

(0.60)

(0.39)

Net

realized

and

unrealized

gains

(losses)

...........

23.05

(59.25)

35.53

38.13

3.68

Total

from

investment

operations

....................

22.43

(60.16)

34.39

37.53

3.29

Less

distributions

from:

Net

realized

gains

.............................

—

(2.22)

—

(0.66)

(1.91)

Net

asset

value,

end

of

year

.......................

$111.57

$89.14

$151.52

$117.13

$80.26

Total

return

....................................

25.16%

(40.29)%

29.36%

47.09%

4.52%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.08%

1.07%

1.04%

1.10%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.08%

d

1.07%

d

1.04%

d

1.09%

1.10%

Net

investment

(loss)

............................

(0.60)%

(0.75)%

(0.81)%

(0.63)%

(0.51)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$212,068

$188,831

$311,646

$221,041

$123,721

Portfolio

turnover

rate

............................

15.29%

40.72%

18.77%

13.82%

20.01%

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

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.

Annual

Report

51

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$97.95

$165.26

$127.01

$86.46

$84.31

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

—

c

(0.18)

(0.36)

(0.05)

0.07

Net

realized

and

unrealized

gains

(losses)

...........

25.40

(64.91)

38.61

41.26

3.99

Total

from

investment

operations

....................

25.40

(65.09)

38.25

41.21

4.06

Less

distributions

from:

Net

realized

gains

.............................

—

(2.22)

—

(0.66)

(1.91)

Net

asset

value,

end

of

year

.......................

$123.35

$97.95

$165.26

$127.01

$86.46

Total

return

....................................

25.92%

(39.92)%

30.12%

47.97%

5.15%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.48%

0.46%

0.46%

0.50%

0.51%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.47%

0.45%

0.46%

e

0.50%

e

0.50%

Net

investment

income

(loss)

......................

—%

f

(0.13)%

(0.23)%

(0.05)%

0.09%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$7,515,703

$6,322,021

$9,820,184

$5,817,028

$2,473,942

Portfolio

turnover

rate

............................

15.29%

40.72%

18.77%

13.82%

20.01%

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

Amount

rounds

to

less

than

$0.01

per

share.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$96.64

$163.27

$125.58

$85.58

$83.56

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.11)

(0.34)

(0.48)

(0.15)

(0.01)

Net

realized

and

unrealized

gains

(losses)

...........

25.03

(64.07)

38.17

40.81

3.94

Total

from

investment

operations

....................

24.92

(64.41)

37.69

40.66

3.93

Less

distributions

from:

Net

realized

gains

.............................

—

(2.22)

—

(0.66)

(1.91)

Net

asset

value,

end

of

year

.......................

$121.56

$96.64

$163.27

$125.58

$85.58

Total

return

....................................

25.79%

(39.99)%

30.01%

47.83%

5.04%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.58%

0.57%

0.54%

0.60%

0.61%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.58%

d

0.57%

d

0.54%

d

0.59%

0.60%

Net

investment

(loss)

............................

(0.10)%

(0.26)%

(0.32)%

(0.15)%

(0.01)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,499,474

$2,280,138

$4,352,531

$2,884,489

$1,154,604

Portfolio

turnover

rate

............................

15.29%

40.72%

18.77%

13.82%

20.01%

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments,

September

30,

2023

Franklin

DynaTech

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

53

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

99.3%

Aerospace

&

Defense

1.1%

a

Axon

Enterprise,

Inc.

...................................

United

States

800,000

$

159,192,000

HEICO

Corp.

........................................

United

States

410,000

66,391,300

225,583,300

Automobile

Components

0.1%

a

Mobileye

Global,

Inc.

,

A

.................................

Israel

600,000

24,930,000

Automobiles

3.2%

a

Tesla,

Inc.

...........................................

United

States

2,500,000

625,550,000

Biotechnology

0.9%

a

Argenx

SE

..........................................

Netherlands

300,000

146,641,318

a

Genmab

A/S

,

ADR

....................................

Denmark

500,000

17,635,000

a

Krystal

Biotech,

Inc.

...................................

United

States

10,000

1,160,000

a

Natera,

Inc.

..........................................

United

States

200,000

8,850,000

174,286,318

Broadline

Retail

7.7%

a

Amazon.com,

Inc.

.....................................

United

States

10,000,000

1,271,200,000

a

MercadoLibre,

Inc.

....................................

Brazil

200,000

253,576,000

1,524,776,000

Capital

Markets

1.8%

Moody's

Corp.

........................................

United

States

100,000

31,617,000

MSCI,

Inc.

,

A

.........................................

United

States

250,000

128,270,000

Tradeweb

Markets,

Inc.

,

A

...............................

United

States

2,500,000

200,500,000

360,387,000

Communications

Equipment

0.1%

a

Arista

Networks,

Inc.

...................................

United

States

75,000

13,794,750

Construction

&

Engineering

1.0%

Quanta

Services,

Inc.

..................................

United

States

1,100,000

205,777,000

Diversified

Consumer

Services

0.1%

a

Duolingo,

Inc.

,

A

......................................

United

States

125,000

20,733,750

Electric

Utilities

0.7%

NextEra

Energy,

Inc.

...................................

United

States

2,300,000

131,767,000

Electrical

Equipment

0.2%

a

Array

Technologies,

Inc.

................................

United

States

800,000

17,752,000

EnerSys

............................................

United

States

100,000

9,467,000

a

NEXTracker,

Inc.

,

A

....................................

United

States

500,000

20,080,000

47,299,000

Electronic

Equipment,

Instruments

&

Components

0.8%

Amphenol

Corp.

,

A

....................................

United

States

500,000

41,995,000

Keyence

Corp.

.......................................

Japan

200,000

73,967,656

Samsung

SDI

Co.

Ltd.

.................................

South

Korea

100,000

37,704,785

153,667,441

Energy

Equipment

&

Services

1.6%

Baker

Hughes

Co.

,

A

...................................

United

States

2,000,000

70,640,000

a

Oceaneering

International,

Inc.

...........................

United

States

1,400,000

36,008,000

Schlumberger

NV

.....................................

United

States

3,000,000

174,900,000

TechnipFMC

plc

......................................

United

Kingdom

1,300,000

26,442,000

307,990,000

Financial

Services

5.0%

a,b

Adyen

NV

,

144A

,

Reg

S

................................

Netherlands

90,000

66,725,910

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Financial

Services

(continued)

Mastercard,

Inc.

,

A

....................................

United

States

1,700,000

$

673,047,000

a

Toast,

Inc.

,

A

.........................................

United

States

550,000

10,301,500

Visa,

Inc.

,

A

..........................................

United

States

1,000,000

230,010,000

980,084,410

Ground

Transportation

0.8%

a

Uber

Technologies,

Inc.

.................................

United

States

3,250,000

149,467,500

Health

Care

Equipment

&

Supplies

4.4%

a

Dexcom,

Inc.

.........................................

United

States

400,000

37,320,000

a

Edwards

Lifesciences

Corp.

.............................

United

States

125,000

8,660,000

a

Haemonetics

Corp.

....................................

United

States

350,000

31,353,000

a

IDEXX

Laboratories,

Inc.

................................

United

States

725,000

317,020,750

a

Inspire

Medical

Systems,

Inc.

............................

United

States

560,000

111,126,400

a

Intuitive

Surgical,

Inc.

..................................

United

States

1,000,000

292,290,000

a

Penumbra,

Inc.

.......................................

United

States

100,000

24,191,000

a

Shockwave

Medical,

Inc.

................................

United

States

100,000

19,910,000

Stryker

Corp.

........................................

United

States

100,000

27,327,000

869,198,150

Health

Care

Providers

&

Services

1.4%

a

HealthEquity,

Inc.

.....................................

United

States

250,000

18,262,500

UnitedHealth

Group,

Inc.

................................

United

States

500,000

252,095,000

270,357,500

Health

Care

Technology

0.5%

a

Veeva

Systems,

Inc.

,

A

.................................

United

States

450,000

91,552,500

Hotels,

Restaurants

&

Leisure

0.6%

a

Airbnb,

Inc.

,

A

........................................

United

States

100,000

13,721,000

a

Booking

Holdings,

Inc.

.................................

United

States

30,000

92,518,500

a

DoorDash,

Inc.

,

A

.....................................

United

States

100,000

7,947,000

114,186,500

Interactive

Media

&

Services

5.1%

a

Alphabet,

Inc.

,

A

......................................

United

States

6,300,000

824,418,000

a

Meta

Platforms,

Inc.

,

A

.................................

United

States

625,000

187,631,250

1,012,049,250

IT

Services

3.2%

a

Gartner,

Inc.

.........................................

United

States

80,000

27,488,800

a

MongoDB,

Inc.

,

A

.....................................

United

States

800,000

276,688,000

a

Shopify,

Inc.

,

A

.......................................

Canada

5,000,000

272,914,673

a

Snowflake,

Inc.

,

A

.....................................

United

States

300,000

45,831,000

622,922,473

Life

Sciences

Tools

&

Services

4.7%

Danaher

Corp.

.......................................

United

States

1,500,000

372,150,000

a

Repligen

Corp.

.......................................

United

States

300,000

47,703,000

Thermo

Fisher

Scientific,

Inc.

............................

United

States

1,000,000

506,170,000

926,023,000

Media

0.1%

a

Trade

Desk,

Inc.

(The)

,

A

................................

United

States

300,000

23,445,000

Pharmaceuticals

1.9%

AstraZeneca

plc

,

ADR

..................................

United

Kingdom

2,500,000

169,300,000

Eli

Lilly

&

Co.

........................................

United

States

400,000

214,852,000

384,152,000

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

55

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Professional

Services

0.9%

a

Ceridian

HCM

Holding,

Inc.

..............................

United

States

200,000

$

13,570,000

Paycom

Software,

Inc.

.................................

United

States

325,000

84,262,750

a

Paylocity

Holding

Corp.

.................................

United

States

325,000

59,052,500

TransUnion

..........................................

United

States

50,000

3,589,500

Verisk

Analytics,

Inc.

,

A

.................................

United

States

60,000

14,174,400

174,649,150

Semiconductors

&

Semiconductor

Equipment

19.3%

a

Advanced

Micro

Devices,

Inc.

............................

United

States

1,000,000

102,820,000

Analog

Devices,

Inc.

...................................

United

States

2,000,000

350,180,000

a

ARM

Holdings

plc

,

ADR

................................

United

States

299,200

16,013,184

ASM

International

NV

..................................

Netherlands

250,000

104,393,244

ASML

Holding

NV

,

ADR

................................

Netherlands

775,000

456,211,500

Broadcom,

Inc.

.......................................

United

States

50,000

41,529,000

Entegris,

Inc.

.........................................

United

States

1,000,000

93,910,000

a

First

Solar,

Inc.

.......................................

United

States

150,000

24,238,500

Intel

Corp.

...........................................

United

States

500,000

17,775,000

KLA

Corp.

...........................................

United

States

550,000

252,263,000

Lam

Research

Corp.

...................................

United

States

535,000

335,321,950

a

Lattice

Semiconductor

Corp.

.............................

United

States

1,000,000

85,930,000

Monolithic

Power

Systems,

Inc.

...........................

United

States

525,000

242,550,000

NVIDIA

Corp.

........................................

United

States

3,850,000

1,674,711,500

3,797,846,878

Software

29.8%

a

Adobe,

Inc.

..........................................

United

States

125,000

63,737,500

a

Altair

Engineering,

Inc.

,

A

...............................

United

States

75,000

4,692,000

a

ANSYS,

Inc.

.........................................

United

States

500,000

148,775,000

a

Aspen

Technology,

Inc.

.................................

United

States

200,000

40,852,000

a

Atlassian

Corp.

,

A

.....................................

United

States

500,000

100,755,000

a

Cadence

Design

Systems,

Inc.

...........................

United

States

2,300,000

538,890,000

Constellation

Software,

Inc.

..............................

Canada

50,000

103,219,833

a

Crowdstrike

Holdings,

Inc.

,

A

.............................

United

States

50,000

8,369,000

a

Datadog,

Inc.

,

A

......................................

United

States

1,000,000

91,090,000

a

Descartes

Systems

Group,

Inc.

(The)

......................

Canada

750,000

55,035,000

a

Fair

Isaac

Corp.

......................................

United

States

50,000

43,426,500

a

HubSpot,

Inc.

........................................

United

States

600,000

295,500,000

Intuit,

Inc.

...........................................

United

States

1,000,000

510,940,000

a,c

Klaviyo,

Inc.

,

A

.......................................

United

States

337,400

11,640,300

a,b

Lumine

Group,

Inc.

,

Reg

S

..............................

Canada

500,000

7,406,317

a

Manhattan

Associates,

Inc.

..............................

United

States

150,000

29,649,000

Microsoft

Corp.

.......................................

United

States

4,200,000

1,326,150,000

a

Monday.com

Ltd.

......................................

United

States

800,000

127,376,000

Oracle

Corp.

.........................................

United

States

100,000

10,592,000

a

Palo

Alto

Networks,

Inc.

................................

United

States

1,100,000

257,884,000

a

Procore

Technologies,

Inc.

..............................

United

States

1,000,000

65,320,000

Roper

Technologies,

Inc.

................................

United

States

500,000

242,140,000

a

Salesforce,

Inc.

.......................................

United

States

1,000,000

202,780,000

a

ServiceNow,

Inc.

......................................

United

States

1,150,000

642,804,000

a

SPS

Commerce,

Inc.

...................................

United

States

150,000

25,591,500

a

Synopsys,

Inc.

.......................................

United

States

1,250,000

573,712,500

a

Tyler

Technologies,

Inc.

.................................

United

States

250,000

96,535,000

a

Workday,

Inc.

,

A

......................................

United

States

1,000,000

214,850,000

a

Xero

Ltd.

............................................

New

Zealand

200,000

14,382,451

5,854,094,901

Technology

Hardware,

Storage

&

Peripherals

2.2%

Apple,

Inc.

..........................................

United

States

2,500,000

428,025,000

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

See

Abbreviations

on

page

154

.

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Trading

Companies

&

Distributors

0.1%

Fastenal

Co.

.........................................

United

States

350,000

$

19,124,000

Total

Common

Stocks

(Cost

$

10,875,811,585

)

...................................

19,533,719,771

Warrants

Warrants

0.0%

Software

0.0%

a,d

Constellation

Software,

Inc.

,

3/31/40

.......................

Canada

50,000

—

Total

Warrants

(Cost

$

–

)

......................................................

—

Total

Long

Term

Investments

(Cost

$

10,875,811,585

)

............................

19,533,719,771

a

Short

Term

Investments

0.5%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

0.5%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.019

%

....

United

States

93,924,605

93,924,605

Total

Money

Market

Funds

(Cost

$

93,924,605

)

..................................

93,924,605

Total

Short

Term

Investments

(Cost

$

93,924,605

)

................................

93,924,605

a

Total

Investments

(Cost

$

10,969,736,190

)

99

.8

%

................................

$19,627,644,376

Other

Assets,

less

Liabilities

0

.2

%

.............................................

42,900,386

Net

Assets

100.0%

...........................................................

$19,670,544,762

a

a

a

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

September

30,

2023,

the

aggregate

value

of

these

securities

was

$74,132,227,

representing

0.4%

of

net

assets.

c

A

portion

or

all

of

the

security

is

on

loan

at

September

30,

2023.

See

Note

1(g).

d

Fair

valued

using

significant

unobservable

inputs.

See

Note

13

regarding

fair

value

measurements.

e

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

57

a

Year

Ended

September

30,

Year

Ended

September

30,

2020

a

2023

2022

2021

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

................................

$19.30

$31.61

$25.05

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

.......................................

(0.10)

(0.18)

(0.23)

(0.10)

Net

realized

and

unrealized

gains

(losses)

........................

5.55

(11.95)

7.00

4.99

Total

from

investment

operations

.................................

5.45

(12.13)

6.77

4.89

Less

distributions

from:

Net

realized

gains

..........................................

—

(0.18)

(0.21)

—

Net

asset

value,

end

of

year

....................................

$24.75

$19.30

$31.61

$25.05

Total

return

d

................................................

28.24%

(38.61)%

27.17%

24.26%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

...................

1.36%

1.37%

1.36%

1.81%

Expenses

net

of

waiver

and

payments

by

affiliates

....................

1.10%

f

1.10%

f

1.10%

f

1.10%

Net

investment

(loss)

.........................................

(0.43)%

(0.69)%

(0.78)%

(0.72)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

..................................

$57,251

$53,027

$80,509

$26,793

Portfolio

turnover

rate

.........................................

27.22%

39.93%

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

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

a

Year

Ended

September

30,

Year

Ended

September

30,

2020

a

2023

2022

2021

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

................................

$18.92

$31.23

$24.94

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

.......................................

(0.26)

(0.37)

(0.44)

(0.21)

Net

realized

and

unrealized

gains

(losses)

........................

5.43

(11.76)

6.94

4.99

Total

from

investment

operations

.................................

5.17

(12.13)

6.50

4.78

Less

distributions

from:

Net

realized

gains

..........................................

—

(0.18)

(0.21)

—

Net

asset

value,

end

of

year

....................................

$24.09

$18.92

$31.23

$24.94

Total

return

d

................................................

27.33%

(39.08)%

26.20%

23.71%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

...................

2.11%

2.12%

2.12%

2.56%

Expenses

net

of

waiver

and

payments

by

affiliates

....................

1.85%

f

1.85%

f

1.85%

f

1.85%

Net

investment

(loss)

.........................................

(1.19)%

(1.44)%

(1.53)%

(1.47)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

..................................

$5,017

$3,954

$6,028

$3,931

Portfolio

turnover

rate

.........................................

27.22%

39.93%

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

are

an

integral

part

of

these

financial

statements.

Annual

Report

59

a

Year

Ended

September

30,

Year

Ended

September

30,

2020

a

2023

2022

2021

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

................................

$19.20

$31.53

$25.06

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

.......................................

(0.16)

(0.24)

(0.31)

(0.11)

Net

realized

and

unrealized

gains

(losses)

........................

5.52

(11.91)

6.99

5.01

Total

from

investment

operations

.................................

5.36

(12.15)

6.68

4.90

Less

distributions

from:

Net

realized

gains

..........................................

—

(0.18)

(0.21)

—

Net

asset

value,

end

of

year

....................................

$24.56

$19.20

$31.53

$25.06

Total

return

d

................................................

27.92%

(38.77)%

26.79%

24.31%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

...................

1.61%

1.61%

1.66%

1.65%

Expenses

net

of

waiver

and

payments

by

affiliates

....................

1.35%

f

1.35%

f

1.38%

f

1.04%

Net

investment

(loss)

.........................................

(0.69)%

(0.94)%

(1.05)%

(0.77)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

..................................

$1,093

$723

$984

$643

Portfolio

turnover

rate

.........................................

27.22%

39.93%

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

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.43

$31.75

$25.10

$17.62

$17.24

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.04)

(0.13)

(0.16)

(0.09)

(0.06)

Net

realized

and

unrealized

gains

(losses)

...........

5.60

(12.01)

7.02

8.66

0.52

Total

from

investment

operations

....................

5.56

(12.14)

6.86

8.57

0.46

Less

distributions

from:

Net

investment

income

..........................

—

—

—

—

(0.01)

Net

realized

gains

.............................

—

(0.18)

(0.21)

(1.09)

(0.07)

Total

distributions

...............................

—

(0.18)

(0.21)

(1.09)

(0.08)

Net

asset

value,

end

of

year

.......................

$24.99

$19.43

$31.75

$25.10

$17.62

Total

return

....................................

28.55%

(38.44)%

27.47%

51.20%

2.80%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.11%

1.12%

1.12%

2.04%

2.41%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.85%

c

0.85%

c

0.85%

c

0.88%

1.00%

Net

investment

(loss)

............................

(0.18)%

(0.47)%

(0.53)%

(0.41)%

(0.36)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$14,135

$9,519

$25,041

$16,747

$4,404

Portfolio

turnover

rate

............................

27.22%

39.93%

22.77%

33.93%

28.65%

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments,

September

30,

2023

Franklin

Focused

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

61

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

100.3%

Aerospace

&

Defense

1.0%

a

Axon

Enterprise,

Inc.

...................................

United

States

3,941

$

784,220

Automobiles

5.4%

a

Tesla,

Inc.

...........................................

United

States

16,702

4,179,174

Broadline

Retail

10.5%

a

Amazon.com,

Inc.

.....................................

United

States

55,291

7,028,592

a

MercadoLibre,

Inc.

....................................

Brazil

900

1,141,092

8,169,684

Capital

Markets

1.3%

MSCI,

Inc.,

A

.........................................

United

States

1,960

1,005,637

Consumer

Staples

Distribution

&

Retail

5.3%

Costco

Wholesale

Corp.

................................

United

States

7,271

4,107,824

Electric

Utilities

1.6%

NextEra

Energy,

Inc.

...................................

United

States

21,969

1,258,604

Energy

Equipment

&

Services

1.2%

Schlumberger

NV

.....................................

United

States

16,229

946,151

Financial

Services

4.9%

Mastercard,

Inc.,

A

....................................

United

States

9,543

3,778,169

Ground

Transportation

0.9%

Canadian

Pacific

Kansas

City

Ltd.

.........................

Canada

8,845

658,156

Health

Care

Equipment

&

Supplies

4.9%

a

IDEXX

Laboratories,

Inc.

................................

United

States

4,426

1,935,357

a

Intuitive

Surgical,

Inc.

..................................

United

States

6,388

1,867,149

3,802,506

Health

Care

Technology

0.7%

a

Veeva

Systems,

Inc.,

A

.................................

United

States

2,848

579,426

Interactive

Media

&

Services

8.4%

a

Alphabet,

Inc.,

A

......................................

United

States

29,294

3,833,413

a

Meta

Platforms,

Inc.,

A

.................................

United

States

8,821

2,648,152

6,481,565

IT

Services

2.7%

a

MongoDB,

Inc.,

A

.....................................

United

States

3,200

1,106,752

a

Shopify,

Inc.,

A

.......................................

Canada

18,242

995,702

2,102,454

Life

Sciences

Tools

&

Services

4.4%

Danaher

Corp.

.......................................

United

States

9,835

2,440,063

Thermo

Fisher

Scientific,

Inc.

............................

United

States

1,964

994,118

3,434,181

Metals

&

Mining

0.9%

Freeport-McMoRan,

Inc.

................................

United

States

17,628

657,348

Oil,

Gas

&

Consumable

Fuels

1.0%

Hess

Corp.

..........................................

United

States

4,900

749,700

Pharmaceuticals

3.1%

Eli

Lilly

&

Co.

........................................

United

States

4,413

2,370,355

Semiconductors

&

Semiconductor

Equipment

17.9%

a

Advanced

Micro

Devices,

Inc.

............................

United

States

7,844

806,520

Analog

Devices,

Inc.

...................................

United

States

14,225

2,490,655

ASML

Holding

NV,

ADR

................................

Netherlands

4,817

2,835,575

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Focused

Growth

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

s

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

NVIDIA

Corp.

........................................

United

States

16,216

$

7,053,798

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

7,850

682,165

13,868,713

Software

24.2%

a

Cadence

Design

Systems,

Inc.

...........................

United

States

14,718

3,448,427

a

HubSpot,

Inc.

........................................

United

States

2,252

1,109,110

Intuit,

Inc.

...........................................

United

States

2,942

1,503,186

Microsoft

Corp.

.......................................

United

States

26,787

8,457,995

a

Salesforce,

Inc.

.......................................

United

States

4,757

964,625

a

ServiceNow,

Inc.

......................................

United

States

5,889

3,291,715

18,775,058

Total

Common

Stocks

(Cost

$61,529,690)

......................................

77,708,925

Short

Term

Investments

0.6%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

0.6%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

....

United

States

448,270

448,270

Total

Money

Market

Funds

(Cost

$448,270)

.....................................

448,270

Total

Short

Term

Investments

(Cost

$448,270

)

..................................

448,270

a

Total

Investments

(Cost

$61,977,960)

100.9%

...................................

$78,157,195

Other

Assets,

less

Liabilities

(0.9)%

...........................................

(661,635)

Net

Assets

100.0%

...........................................................

$77,495,560

a

a

a

See

Abbreviations

on

page

154

.

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

Highlights

Franklin

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

63

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$105.41

$151.73

$129.91

$110.04

$107.59

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

0.19

0.01

(0.06)

0.33

0.46

Net

realized

and

unrealized

gains

(losses)

...........

20.19

(32.51)

32.67

25.99

3.47

Total

from

investment

operations

....................

20.38

(32.50)

32.61

26.32

3.93

Less

distributions

from:

Net

investment

income

..........................

—

—

(0.18)

(0.46)

(0.44)

Net

realized

gains

.............................

(10.71)

(13.82)

(10.61)

(5.99)

(1.04)

Total

distributions

...............................

(10.71)

(13.82)

(10.79)

(6.45)

(1.48)

Net

asset

value,

end

of

year

.......................

$115.08

$105.41

$151.73

$129.91

$110.04

Total

return

c

...................................

20.43%

(23.83)%

26.44%

25.09%

3.79%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.80%

0.80%

0.79%

0.82%

0.83%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.80%

e

0.80%

e

0.79%

e

0.81%

0.83%

e

Net

investment

income

(loss)

......................

0.17%

0.01%

(0.04)%

0.29%

0.45%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$10,072,509

$9,118,403

$12,927,577

$10,990,297

$9,157,154

Portfolio

turnover

rate

............................

2.86%

4.95%

f

6.04%

f

9.01%

4.91%

f

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h)

and

12.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$91.92

$134.93

$117.27

$100.21

$98.38

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.57)

(0.87)

(1.01)

(0.47)

(0.29)

Net

realized

and

unrealized

gains

(losses)

...........

17.44

(28.32)

29.28

23.52

3.16

Total

from

investment

operations

....................

16.87

(29.19)

28.27

23.05

2.87

Less

distributions

from:

Net

realized

gains

.............................

(10.71)

(13.82)

(10.61)

(5.99)

(1.04)

Net

asset

value,

end

of

year

.......................

$98.08

$91.92

$134.93

$117.27

$100.21

Total

return

c

...................................

19.53%

(24.40)%

25.51%

24.16%

3.02%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.55%

1.55%

1.54%

1.57%

1.58%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.55%

e

1.55%

e

1.54%

e

1.56%

1.58%

e

Net

investment

(loss)

............................

(0.59)%

(0.75)%

(0.79)%

(0.46)%

(0.30)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$333,956

$407,722

$666,348

$727,093

$704,217

Portfolio

turnover

rate

............................

2.86%

4.95%

f

6.04%

f

9.01%

4.91%

f

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h)

and

12.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

65

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$104.43

$150.77

$129.28

$109.49

$107.00

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

(0.10)

(0.32)

(0.41)

0.05

0.21

Net

realized

and

unrealized

gains

(losses)

...........

19.98

(32.20)

32.51

25.86

3.46

Total

from

investment

operations

....................

19.88

(32.52)

32.10

25.91

3.67

Less

distributions

from:

Net

investment

income

..........................

—

—

—

(0.13)

(0.14)

Net

realized

gains

.............................

(10.71)

(13.82)

(10.61)

(5.99)

(1.04)

Total

distributions

...............................

(10.71)

(13.82)

(10.61)

(6.12)

(1.18)

Net

asset

value,

end

of

year

.......................

$113.60

$104.43

$150.77

$129.28

$109.49

Total

return

....................................

20.13%

(24.01)%

26.13%

24.78%

3.54%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.05%

1.05%

1.04%

1.07%

1.08%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.05%

d

1.05%

d

1.04%

d

1.06%

1.08%

d

Net

investment

income

(loss)

......................

(0.09)%

(0.25)%

(0.29)%

0.04%

0.20%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$256,889

$249,874

$395,301

$420,082

$435,331

Portfolio

turnover

rate

............................

2.86%

4.95%

e

6.04%

e

9.01%

4.91%

e

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h)

and

12.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$106.22

$152.40

$130.31

$110.37

$107.90

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.56

0.46

0.41

0.71

0.83

Net

realized

and

unrealized

gains

(losses)

...........

20.34

(32.72)

32.76

26.06

3.47

Total

from

investment

operations

....................

20.90

(32.26)

33.17

26.77

4.30

Less

distributions

from:

Net

investment

income

..........................

(0.25)

(0.10)

(0.47)

(0.84)

(0.79)

Net

realized

gains

.............................

(10.71)

(13.82)

(10.61)

(5.99)

(1.04)

Total

distributions

...............................

(10.96)

(13.92)

(11.08)

(6.83)

(1.83)

Net

asset

value,

end

of

year

.......................

$116.16

$106.22

$152.40

$130.31

$110.37

Total

return

....................................

20.83%

(23.57)%

26.86%

25.51%

4.16%

Ratios

to

average

net

assets

Expenses

c

,d

....................................

0.47%

0.46%

0.47%

0.48%

0.48%

Net

investment

income

...........................

0.49%

0.34%

0.29%

0.63%

0.80%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,114,155

$2,000,923

$3,113,946

$2,999,370

$2,545,800

Portfolio

turnover

rate

............................

2.86%

4.95%

e

6.04%

e

9.01%

4.91%

e

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h)

and

12.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

67

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$106.25

$152.47

$130.38

$110.41

$107.95

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.47

0.34

0.30

0.62

0.72

Net

realized

and

unrealized

gains

(losses)

...........

20.36

(32.74)

32.79

26.07

3.47

Total

from

investment

operations

....................

20.83

(32.40)

33.09

26.69

4.19

Less

distributions

from:

Net

investment

income

..........................

(0.16)

—

(0.39)

(0.73)

(0.69)

Net

realized

gains

.............................

(10.71)

(13.82)

(10.61)

(5.99)

(1.04)

Total

distributions

...............................

(10.87)

(13.82)

(11.00)

(6.72)

(1.73)

Net

asset

value,

end

of

year

.......................

$116.21

$106.25

$152.47

$130.38

$110.41

Total

return

....................................

20.73%

(23.64)%

26.76%

25.41%

4.05%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.55%

0.55%

0.54%

0.57%

0.58%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.55%

d

0.55%

d

0.54%

d

0.56%

0.58%

d

Net

investment

income

...........................

0.42%

0.25%

0.21%

0.54%

0.70%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,860,970

$2,652,765

$4,229,679

$3,549,412

$3,154,342

Portfolio

turnover

rate

............................

2.86%

4.95%

e

6.04%

e

9.01%

4.91%

e

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h)

a

nd

12

.

Franklin

Custodian

Funds

Schedule

of

Investments,

September

30,

2023

Franklin

Growth

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

98.3%

Aerospace

&

Defense

4.4%

BWX

Technologies,

Inc.

................................

United

States

1,344,011

$

100,773,945

Lockheed

Martin

Corp.

.................................

United

States

346,455

141,686,237

Northrop

Grumman

Corp.

...............................

United

States

627,397

276,173,885

RTX

Corp.

..........................................

United

States

2,288,910

164,732,853

683,366,920

Automobiles

0.8%

a

Tesla,

Inc.

...........................................

United

States

479,183

119,901,170

Beverages

3.4%

Brown-Forman

Corp.

,

B

................................

United

States

1,359,682

78,440,054

Constellation

Brands,

Inc.

,

A

.............................

United

States

528,378

132,797,243

a

Monster

Beverage

Corp.

................................

United

States

4,227,826

223,863,387

PepsiCo,

Inc.

........................................

United

States

615,845

104,348,777

539,449,461

Biotechnology

1.8%

AbbVie,

Inc.

.........................................

United

States

435,787

64,958,410

Amgen,

Inc.

.........................................

United

States

509,836

137,023,524

a

Argenx

SE

,

ADR

......................................

Netherlands

30,411

14,950,960

a

Regeneron

Pharmaceuticals,

Inc.

.........................

United

States

72,246

59,455,568

276,388,462

Broadline

Retail

3.7%

a

Amazon.com,

Inc.

.....................................

United

States

4,539,124

577,013,443

Building

Products

1.6%

Allegion

plc

..........................................

United

States

470,785

49,055,797

Trane

Technologies

plc

.................................

United

States

989,869

200,854,319

249,910,116

Capital

Markets

4.1%

BlackRock,

Inc.

.......................................

United

States

123,820

80,048,392

Blackstone,

Inc.

......................................

United

States

798,607

85,562,754

Charles

Schwab

Corp.

(The)

.............................

United

States

2,102,782

115,442,732

Intercontinental

Exchange,

Inc.

...........................

United

States

1,350,590

148,591,912

S&P

Global,

Inc.

......................................

United

States

350,525

128,085,340

Tradeweb

Markets,

Inc.

,

A

...............................

United

States

1,129,220

90,563,444

648,294,574

Chemicals

3.1%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

473,767

134,265,568

Ecolab,

Inc.

..........................................

United

States

590,978

100,111,673

Linde

plc

............................................

United

States

688,527

256,373,028

490,750,269

Commercial

Services

&

Supplies

0.6%

Republic

Services,

Inc.

,

A

...............................

United

States

616,799

87,900,025

Construction

Materials

0.8%

Martin

Marietta

Materials,

Inc.

............................

United

States

300,997

123,553,249

Consumer

Staples

Distribution

&

Retail

0.2%

Costco

Wholesale

Corp.

................................

United

States

53,249

30,083,555

Electric

Utilities

0.7%

NextEra

Energy,

Inc.

...................................

United

States

1,945,346

111,448,872

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

69

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electrical

Equipment

1.1%

AMETEK,

Inc.

........................................

United

States

543,467

$

80,302,684

Eaton

Corp.

plc

.......................................

United

States

437,964

93,408,962

173,711,646

Electronic

Equipment,

Instruments

&

Components

2.9%

Amphenol

Corp.

,

A

....................................

United

States

2,744,615

230,520,214

TE

Connectivity

Ltd.

...................................

United

States

1,770,857

218,753,965

449,274,179

Entertainment

0.2%

a

ROBLOX

Corp.

,

A

.....................................

United

States

1,176,786

34,079,723

Financial

Services

4.6%

a,b

Adyen

NV

,

144A

,

Reg

S

................................

Netherlands

72,441

53,707,685

Mastercard,

Inc.

,

A

....................................

United

States

964,326

381,786,307

a

Paymentus

Holdings,

Inc.

,

A

.............................

United

States

894,485

14,848,451

Visa,

Inc.

,

A

..........................................

United

States

1,167,618

268,563,816

718,906,259

Food

Products

0.3%

Lamb

Weston

Holdings,

Inc.

.............................

United

States

519,559

48,038,425

Ground

Transportation

3.4%

Canadian

Pacific

Kansas

City

Ltd.

.........................

Canada

1,346,949

100,226,475

JB

Hunt

Transport

Services,

Inc.

..........................

United

States

473,767

89,314,555

a

Uber

Technologies,

Inc.

.................................

United

States

965,539

44,405,139

Union

Pacific

Corp.

....................................

United

States

1,433,210

291,844,552

525,790,721

Health

Care

Equipment

&

Supplies

4.1%

Abbott

Laboratories

....................................

United

States

741,502

71,814,469

a

Edwards

Lifesciences

Corp.

.............................

United

States

966,324

66,946,927

a

Haemonetics

Corp.

....................................

United

States

737,264

66,044,109

a

Intuitive

Surgical,

Inc.

..................................

United

States

932,640

272,601,345

Stryker

Corp.

........................................

United

States

388,847

106,260,220

Teleflex,

Inc.

.........................................

United

States

317,502

62,360,568

646,027,638

Health

Care

Providers

&

Services

1.0%

Laboratory

Corp.

of

America

Holdings

......................

United

States

319,016

64,138,167

UnitedHealth

Group,

Inc.

................................

United

States

176,115

88,795,422

152,933,589

Health

Care

Technology

0.3%

a

Veeva

Systems,

Inc.

,

A

.................................

United

States

261,713

53,245,510

Hotels,

Restaurants

&

Leisure

1.4%

a

Airbnb,

Inc.

,

A

........................................

United

States

345,490

47,404,683

a

Booking

Holdings,

Inc.

.................................

United

States

28,173

86,884,123

Las

Vegas

Sands

Corp.

.................................

United

States

1,723,083

78,986,125

213,274,931

Industrial

REITs

0.2%

Prologis,

Inc.

.........................................

United

States

337,800

37,904,538

Interactive

Media

&

Services

3.7%

a

Alphabet,

Inc.

,

A

......................................

United

States

2,056,520

269,116,207

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Interactive

Media

&

Services

(continued)

a

Alphabet,

Inc.

,

C

......................................

United

States

2,401,900

$

316,690,515

585,806,722

IT

Services

0.7%

a,c,d

Canva,

Inc.

..........................................

Australia

25,413

28,524,759

a

Shopify,

Inc.

,

A

.......................................

Canada

411,700

22,466,469

a

Snowflake,

Inc.

,

A

.....................................

United

States

373,979

57,132,772

108,124,000

Life

Sciences

Tools

&

Services

5.5%

Agilent

Technologies,

Inc.

...............................

United

States

1,169,568

130,781,094

Danaher

Corp.

.......................................

United

States

1,091,672

270,843,823

a

Illumina,

Inc.

.........................................

United

States

569,914

78,237,794

a

Mettler-Toledo

International,

Inc.

..........................

United

States

219,009

242,677,302

Thermo

Fisher

Scientific,

Inc.

............................

United

States

269,334

136,328,791

858,868,804

Machinery

3.7%

Deere

&

Co.

.........................................

United

States

377,751

142,555,672

Dover

Corp.

.........................................

United

States

375,644

52,406,094

Illinois

Tool

Works,

Inc.

.................................

United

States

832,519

191,737,451

Ingersoll

Rand,

Inc.

....................................

United

States

1,859,776

118,504,927

Xylem,

Inc.

..........................................

United

States

791,701

72,068,542

577,272,686

Media

0.2%

Comcast

Corp.

,

A

.....................................

United

States

760,978

33,741,764

Personal

Care

Products

0.2%

Estee

Lauder

Cos.,

Inc.

(The)

,

A

..........................

United

States

178,208

25,759,966

Pharmaceuticals

4.5%

AstraZeneca

plc

,

ADR

..................................

United

Kingdom

2,110,216

142,903,827

a

Catalent,

Inc.

........................................

United

States

2,091,687

95,234,509

Eli

Lilly

&

Co.

........................................

United

States

860,884

462,406,623

700,544,959

Professional

Services

0.7%

Automatic

Data

Processing,

Inc.

..........................

United

States

105,229

25,315,993

Paycom

Software,

Inc.

.................................

United

States

179,166

46,452,369

Verisk

Analytics,

Inc.

,

A

.................................

United

States

178,221

42,102,929

113,871,291

Semiconductors

&

Semiconductor

Equipment

8.9%

a

ARM

Holdings

plc

,

ADR

................................

United

States

494,000

26,438,880

ASML

Holding

NV

,

ADR

................................

Netherlands

388,894

228,926,342

Lam

Research

Corp.

...................................

United

States

28,550

17,894,284

a

Lattice

Semiconductor

Corp.

.............................

United

States

337,100

28,967,003

Monolithic

Power

Systems,

Inc.

...........................

United

States

426,545

197,063,790

NVIDIA

Corp.

........................................

United

States

1,276,667

555,337,378

NXP

Semiconductors

NV

...............................

China

665,330

133,012,774

Texas

Instruments,

Inc.

.................................

United

States

1,326,618

210,945,528

1,398,585,979

Software

17.9%

a

Adobe,

Inc.

..........................................

United

States

143,493

73,167,081

a

ANSYS,

Inc.

.........................................

United

States

125,232

37,262,782

a

Atlassian

Corp.

,

A

.....................................

United

States

265,862

53,573,852

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

71

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

a

Autodesk,

Inc.

........................................

United

States

741,413

$

153,405,764

a

BILL

Holdings,

Inc.

....................................

United

States

1,026,782

111,477,722

a,c,d

Checkout

Payments

Group

Ltd.

,

B

.........................

United

Kingdom

96,603

8,383,837

a

Crowdstrike

Holdings,

Inc.

,

A

.............................

United

States

132,753

22,220,197

Intuit,

Inc.

...........................................

United

States

729,131

372,542,193

Microsoft

Corp.

.......................................

United

States

2,835,568

895,330,596

a

Procore

Technologies,

Inc.

..............................

United

States

66,651

4,353,643

a

PTC,

Inc.

...........................................

United

States

1,141,015

161,659,005

a

Salesforce,

Inc.

.......................................

United

States

534,162

108,317,370

a

ServiceNow,

Inc.

......................................

United

States

648,395

362,426,869

a,c,d

Stripe,

Inc.

,

B

........................................

United

States

540,043

11,756,907

a

Synopsys,

Inc.

.......................................

United

States

503,220

230,962,884

a

Tyler

Technologies,

Inc.

.................................

United

States

114,252

44,117,267

a

Workday,

Inc.

,

A

......................................

United

States

661,601

142,144,975

2,793,102,944

Specialized

REITs

0.4%

Crown

Castle,

Inc.

.....................................

United

States

748,219

68,858,595

Technology

Hardware,

Storage

&

Peripherals

4.7%

Apple,

Inc.

..........................................

United

States

4,247,993

727,298,881

Textiles,

Apparel

&

Luxury

Goods

1.1%

NIKE,

Inc.

,

B

.........................................

United

States

1,757,536

168,055,592

Trading

Companies

&

Distributors

0.9%

Fastenal

Co.

.........................................

United

States

2,605,313

142,354,302

Water

Utilities

0.5%

American

Water

Works

Co.,

Inc.

..........................

United

States

579,967

71,817,314

Total

Common

Stocks

(Cost

$

4,723,582,529

)

....................................

15,365,311,074

Convertible

Preferred

Stocks

0.5%

IT

Services

0.0%

†

a,c,d

Canva,

Inc.

,

A

........................................

Australia

2,353

2,641,119

a,c,d

Canva,

Inc.

,

A-3

......................................

Australia

94

105,510

a,c,d

Canva,

Inc.

,

A-4

......................................

Australia

8

8,980

a,c,d

Canva,

Inc.

,

A-5

......................................

Australia

5

5,612

2,761,221

Software

0.5%

a,c,d

Gusto,

Inc.

,

E

........................................

United

States

822,494

22,949,784

a,c,d,e

OneTrust

LLC

,

C

......................................

United

States

849,894

12,730,065

a,c,d

Stripe,

Inc.

,

I

.........................................

United

States

1,759,545

38,305,853

73,985,702

Total

Convertible

Preferred

Stocks

(Cost

$

81,287,285

)

...........................

76,746,923

Preferred

Stocks

0.6%

Life

Sciences

Tools

&

Services

0.6%

f

Sartorius

AG

,

0.45

%

...................................

Germany

283,800

96,116,794

Total

Preferred

Stocks

(Cost

$

107,929,935

)

.....................................

96,116,794

Total

Long

Term

Investments

(Cost

$

4,912,799,749

)

.............................

15,538,174,791

a

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

†

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

September

30,

2023,

the

value

of

this

security

was

$53,707,685,

representing

0.3%

of

net

assets.

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

13

regarding

fair

value

measurements.

d

See

Note

8

regarding

restricted

securities.

e

See

Note

10

regarding

holdings

of

5%

voting

securities.

f

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

g

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

h

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

See

Abbreviations

on

page

154

.

Short

Term

Investments

0.4%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

0.4%

g,h

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.019

%

....

United

States

69,954,846

$

69,954,846

Total

Money

Market

Funds

(Cost

$

69,954,846

)

..................................

69,954,846

Total

Short

Term

Investments

(Cost

$

69,954,846

)

................................

69,954,846

a

Total

Investments

(Cost

$

4,982,754,595

)

99

.8

%

..................................

$15,608,129,637

Other

Assets,

less

Liabilities

0

.2

%

.............................................

30,350,291

Net

Assets

100.0%

...........................................................

$15,638,479,928

a

a

a

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

73

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$2.14

$2.47

$2.08

$2.30

$2.32

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.09

0.07

0.08

0.08

0.08

Net

realized

and

unrealized

gains

(losses)

...........

0.09

(0.24)

0.42

(0.18)

0.02

Total

from

investment

operations

....................

0.18

(0.17)

0.50

(0.10)

0.10

Less

distributions

from:

Net

investment

income

..........................

(0.13)

(0.11)

(0.11)

(0.12)

(0.12)

Net

realized

gains

.............................

—

(0.05)

—

—

—

Total

distributions

...............................

(0.13)

(0.16)

(0.11)

(0.12)

(0.12)

Net

asset

value,

end

of

year

.......................

$2.19

$2.14

$2.47

$2.08

$2.30

Total

return

c

...................................

8.33%

(7.28)%

24.55%

(4.48)%

4.40%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.71%

0.72%

0.72%

0.71%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.71%

d

0.71%

e

0.72%

d,e

0.70%

e

0.72%

d,e

Net

investment

income

...........................

4.02%

3.08%

3.19%

3.64%

3.92%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$19,705,319

$16,829,899

$16,044,379

$10,072,437

$7,427,468

Portfolio

turnover

rate

............................

56.23%

77.65%

68.93%

69.13%

43.63%

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.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$2.15

$2.48

$2.08

$2.30

$2.32

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.09

0.08

0.08

0.08

0.09

Net

realized

and

unrealized

gains

(losses)

...........

0.09

(0.24)

0.43

(0.18)

0.01

Total

from

investment

operations

....................

0.18

(0.16)

0.51

(0.10)

0.10

Less

distributions

from:

Net

investment

income

..........................

(0.13)

(0.12)

(0.11)

(0.12)

(0.12)

Net

realized

gains

.............................

—

(0.05)

—

—

—

Total

distributions

...............................

(0.13)

(0.17)

(0.11)

(0.12)

(0.12)

Net

asset

value,

end

of

year

.......................

$2.20

$2.15

$2.48

$2.08

$2.30

Total

return

c

...................................

8.43%

(7.10)%

25.19%

(4.39)%

4.50%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.61%

0.62%

0.62%

0.61%

0.62%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.61%

d

0.61%

e

0.62%

d,e

0.60%

e

0.62%

d,e

Net

investment

income

...........................

4.11%

3.15%

3.32%

3.74%

4.02%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$29,633,019

$30,236,582

$35,704,730

$32,693,224

$39,625,649

Portfolio

turnover

rate

............................

56.23%

77.65%

68.93%

69.13%

43.63%

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.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

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.

Annual

Report

75

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$2.19

$2.52

$2.12

$2.34

$2.35

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.08

0.07

0.07

0.07

0.08

Net

realized

and

unrealized

gains

(losses)

...........

0.09

(0.25)

0.43

(0.18)

0.02

Total

from

investment

operations

....................

0.17

(0.18)

0.50

(0.11)

0.10

Less

distributions

from:

Net

investment

income

..........................

(0.12)

(0.10)

(0.10)

(0.11)

(0.11)

Net

realized

gains

.............................

—

(0.05)

—

—

—

Total

distributions

...............................

(0.12)

(0.15)

(0.10)

(0.11)

(0.11)

Net

asset

value,

end

of

year

.......................

$2.24

$2.19

$2.52

$2.12

$2.34

Total

return

c

...................................

8.19%

(7.89)%

24.09%

(4.80)%

4.35%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.11%

1.12%

1.13%

1.11%

1.12%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.11%

d

1.11%

e

1.12%

e

1.10%

e

1.12%

d,e

Net

investment

income

...........................

3.61%

2.63%

2.84%

3.24%

3.52%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$4,905,480

$5,654,802

$7,507,658

$9,339,238

$13,488,627

Portfolio

turnover

rate

............................

56.23%

77.65%

68.93%

69.13%

43.63%

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.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$2.10

$2.43

$2.04

$2.26

$2.28

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.08

0.07

0.07

0.07

0.08

Net

realized

and

unrealized

gains

(losses)

...........

0.09

(0.24)

0.43

(0.18)

0.01

Total

from

investment

operations

....................

0.17

(0.17)

0.50

(0.11)

0.09

Less

distributions

from:

Net

investment

income

..........................

(0.12)

(0.11)

(0.11)

(0.11)

(0.11)

Net

realized

gains

.............................

—

(0.05)

—

—

—

Total

distributions

...............................

(0.12)

(0.16)

(0.11)

(0.11)

(0.11)

Net

asset

value,

end

of

year

.......................

$2.15

$2.10

$2.43

$2.04

$2.26

Total

return

....................................

8.21%

(7.61)%

24.75%

(4.82)%

4.20%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.96%

0.97%

0.97%

0.96%

0.97%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.96%

c

0.96%

d

0.97%

c,d

0.95%

d

0.97%

c,d

Net

investment

income

...........................

3.77%

2.84%

2.97%

3.40%

3.67%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$300,283

$270,060

$257,109

$221,584

$265,531

Portfolio

turnover

rate

............................

56.23%

77.65%

68.93%

69.13%

43.63%

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

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

d

Benefit

of

expense

reduction

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.

Annual

Report

77

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$2.14

$2.47

$2.07

$2.29

$2.30

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.10

0.08

0.08

0.09

0.10

Net

realized

and

unrealized

gains

(losses)

...........

0.09

(0.24)

0.44

(0.19)

0.01

Total

from

investment

operations

....................

0.19

(0.16)

0.52

(0.10)

0.11

Less

distributions

from:

Net

investment

income

..........................

(0.14)

(0.12)

(0.12)

(0.12)

(0.12)

Net

realized

gains

.............................

—

(0.05)

—

—

—

Total

distributions

...............................

(0.14)

(0.17)

(0.12)

(0.12)

(0.12)

Net

asset

value,

end

of

year

.......................

$2.19

$2.14

$2.47

$2.07

$2.29

Total

return

....................................

9.17%

(7.38)%

25.53%

(4.23)%

5.17%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.41%

0.42%

0.43%

0.40%

0.41%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.40%

0.40%

c

0.41%

c

0.39%

c

0.40%

c

Net

investment

income

...........................

4.35%

3.43%

3.50%

3.96%

4.24%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,662,931

$1,158,685

$748,355

$1,626,735

$1,902,027

Portfolio

turnover

rate

............................

56.23%

77.65%

68.93%

69.13%

43.63%

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$2.13

$2.46

$2.07

$2.28

$2.30

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.10

0.08

0.08

0.08

0.09

Net

realized

and

unrealized

gains

(losses)

...........

0.09

(0.24)

0.43

(0.17)

0.01

Total

from

investment

operations

....................

0.19

(0.16)

0.51

(0.09)

0.10

Less

distributions

from:

Net

investment

income

..........................

(0.14)

(0.12)

(0.12)

(0.12)

(0.12)

Net

realized

gains

.............................

—

(0.05)

—

—

—

Total

distributions

...............................

(0.14)

(0.17)

(0.12)

(0.12)

(0.12)

Net

asset

value,

end

of

year

.......................

$2.18

$2.13

$2.46

$2.07

$2.28

Total

return

....................................

9.16%

(7.44)%

24.98%

(3.86)%

4.65%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.46%

0.47%

0.47%

0.46%

0.47%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.46%

c

0.46%

d

0.47%

c,d

0.45%

d

0.47%

c,d

Net

investment

income

...........................

4.27%

3.32%

3.46%

3.89%

4.17%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$12,941,766

$11,638,757

$11,969,691

$9,712,076

$11,816,599

Portfolio

turnover

rate

............................

56.23%

77.65%

68.93%

69.13%

43.63%

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

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments,

September

30,

2023

Franklin

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

79

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

18.7%

Aerospace

&

Defense

1.3%

Lockheed

Martin

Corp.

.................................

United

States

1,500,000

$

613,440,000

Northrop

Grumman

Corp.

...............................

United

States

400,000

176,076,000

RTX

Corp.

..........................................

United

States

1,250,000

89,962,500

879,478,500

Air

Freight

&

Logistics

0.2%

United

Parcel

Service,

Inc.,

B

............................

United

States

1,000,000

155,870,000

Banks

2.8%

a

Bank

of

America

Corp.

.................................

United

States

26,000,000

711,880,000

a

Citigroup,

Inc.

........................................

United

States

6,000,000

246,780,000

a

Fifth

Third

Bancorp

....................................

United

States

10,000,000

253,300,000

a

JPMorgan

Chase

&

Co.

.................................

United

States

2,000,000

290,040,000

a

PNC

Financial

Services

Group,

Inc.

(The)

...................

United

States

1,000,000

122,770,000

a

Truist

Financial

Corp.

..................................

United

States

8,500,000

243,185,000

a

US

Bancorp

.........................................

United

States

2,000,000

66,120,000

1,934,075,000

Beverages

0.4%

Coca-Cola

Co.

(The)

...................................

United

States

2,000,000

111,960,000

a

PepsiCo,

Inc.

........................................

United

States

1,000,000

169,440,000

281,400,000

Biotechnology

0.4%

AbbVie,

Inc.

.........................................

United

States

2,000,000

298,120,000

Capital

Markets

1.3%

a

Charles

Schwab

Corp.

(The)

.............................

United

States

3,000,000

164,700,000

a

Goldman

Sachs

Group,

Inc.

(The)

.........................

United

States

550,000

177,963,500

a

Morgan

Stanley

.......................................

United

States

6,380,000

521,054,600

863,718,100

Chemicals

0.3%

BASF

SE

...........................................

Germany

5,000,000

226,314,018

Communications

Equipment

0.5%

a

Cisco

Systems,

Inc.

...................................

United

States

6,500,000

349,440,000

Consumer

Staples

Distribution

&

Retail

0.3%

a

Target

Corp.

.........................................

United

States

1,700,000

187,969,000

Diversified

Telecommunication

Services

0.2%

Verizon

Communications,

Inc.

............................

United

States

5,000,000

162,050,000

Electric

Utilities

2.2%

American

Electric

Power

Co.,

Inc.

.........................

United

States

2,386,650

179,523,813

Duke

Energy

Corp.

....................................

United

States

3,000,000

264,780,000

Edison

International

...................................

United

States

3,000,000

189,870,000

a

NextEra

Energy,

Inc.

...................................

United

States

5,127,000

293,725,830

Southern

Co.

(The)

....................................

United

States

9,000,000

582,480,000

1,510,379,643

Health

Care

Providers

&

Services

0.1%

a

CVS

Health

Corp.

.....................................

United

States

1,000,000

69,820,000

Household

Products

0.6%

Procter

&

Gamble

Co.

(The)

.............................

United

States

2,750,000

401,115,000

Industrial

Conglomerates

0.4%

a

Honeywell

International,

Inc.

.............................

United

States

1,334,737

246,579,313

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Insurance

0.3%

a

MetLife,

Inc.

.........................................

United

States

3,500,000

$

220,185,000

IT

Services

0.4%

a

International

Business

Machines

Corp.

.....................

United

States

2,000,000

280,600,000

Media

0.3%

a

Comcast

Corp.,

A

.....................................

United

States

5,000,000

221,700,000

Metals

&

Mining

0.7%

Newmont

Corp.

.......................................

United

States

3,822,267

141,232,766

Rio

Tinto

plc,

ADR

.....................................

Australia

5,000,000

318,200,000

459,432,766

Multi-Utilities

0.7%

Dominion

Energy,

Inc.

..................................

United

States

8,500,000

379,695,000

Sempra

.............................................

United

States

2,000,000

136,060,000

515,755,000

Oil,

Gas

&

Consumable

Fuels

1.9%

a

Chevron

Corp.

.......................................

United

States

5,500,100

927,426,862

Shell

plc,

ADR

........................................

Netherlands

4,000,000

257,520,000

TotalEnergies

SE,

ADR

.................................

France

2,000,000

131,520,000

1,316,466,862

Pharmaceuticals

1.8%

b

Bausch

Health

Cos.,

Inc.

................................

United

States

15,000,000

123,300,000

Bayer

AG

...........................................

Germany

1,000,000

48,022,143

Bristol-Myers

Squibb

Co.

................................

United

States

3,000,000

174,120,000

a

Johnson

&

Johnson

...................................

United

States

2,500,000

389,375,000

Merck

&

Co.,

Inc.

.....................................

United

States

1,500,000

154,425,000

Pfizer,

Inc.

...........................................

United

States

10,871,000

360,591,070

1,249,833,213

Semiconductors

&

Semiconductor

Equipment

1.2%

Intel

Corp.

...........................................

United

States

6,000,000

213,300,000

a

QUALCOMM,

Inc.

.....................................

United

States

1,000,000

111,060,000

a

Texas

Instruments,

Inc.

.................................

United

States

3,000,000

477,030,000

801,390,000

Tobacco

0.4%

a

Philip

Morris

International,

Inc.

...........................

United

States

3,000,000

277,740,000

Total

Common

Stocks

(Cost

$12,650,042,571)

...................................

12,909,431,415

Management

Investment

Companies

0.1%

Capital

Markets

0.1%

c

Clarion

Partners

Real

Estate

Income

Fund,

Inc.,

Class

I

........

United

States

7,867,833

94,020,602

Total

Management

Investment

Companies

(Cost

$100,000,000)

...................

94,020,602

d

Equity-Linked

Securities

17.3%

Aerospace

&

Defense

0.5%

e

Merrill

Lynch

International

&

Co.

CV

into

Raytheon

Technologies

Corp.,

144A,

7.5%,

5/08/24

............................

United

States

2,350,000

179,599,824

e

Mizuho

Markets

Cayman

LP

into

Lockheed

Martin

Corp.,

144A,

9%,

11/07/23

..........................................

United

States

459,000

189,062,412

368,662,236

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

81

a

a

Country

Shares

a

Value

a

a

a

a

a

a

d

Equity-Linked

Securities

(continued)

Air

Freight

&

Logistics

0.3%

e,f

J.P.

Morgan

Structured

Products

BV

into

United

Parcel

Service,

Inc.,

144A,

9%,

10/22/24

..................................

United

States

1,530,000

$

236,889,058

Automobiles

0.6%

e

Barclays

Bank

plc

into

Ford

Motor

Co.,

144A,

12%,

2/09/24

......

United

States

7,600,000

96,307,913

e

Royal

Bank

of

Canada

into

General

Motors

Co.,

144A,

12%,

6/18/24

United

States

8,750,000

288,381,482

384,689,395

Banks

1.8%

e

Barclays

Bank

plc

into

Citigroup,

Inc.,

144A,

9%,

7/03/24

........

United

States

5,110,000

223,116,026

e

Barclays

Bank

plc

into

US

Bancorp.,

144A,

10%,

8/23/24

.......

United

States

4,320,000

148,536,320

e

Citigroup

Global

Markets

Holdings,

Inc.

into

Bank

of

America

Corp.,

144A,

8%,

8/16/24

...................................

United

States

8,128,000

234,532,298

e

JPMorgan

Chase

Bank

NA

into

Bank

of

America

Corp.,

144A,

9%,

2/02/24

...........................................

United

States

8,450,000

241,368,473

e

National

Bank

of

Canada

into

Truist

Financial

Corp.,

144A,

9%,

10/10/23

..........................................

United

States

5,000,000

148,215,965

e

Royal

Bank

of

Canada

into

Citigroup,

Inc.,

144A,

10%,

10/15/24

..

United

States

6,300,000

260,567,518

1,256,336,600

Biotechnology

0.2%

e

Goldman

Sachs

International

Bank

into

AbbVie,

Inc.,

144A,

8.5%,

2/06/24

...........................................

United

States

1,150,000

173,591,464

Broadline

Retail

0.9%

e

Goldman

Sachs

International

Bank

into

Amazon.com,

Inc.,

144A,

9%,

11/20/24

.......................................

United

States

2,375,000

283,953,825

e

Royal

Bank

of

Canada

into

Amazon.com,

Inc.,

144A,

10%,

4/05/24

United

States

2,800,000

315,587,762

599,541,587

Building

Products

0.2%

e

J.P.

Morgan

Structured

Products

BV

into

Johnson

Controls

International

plc,

144A,

8%,

9/09/24

......................

United

States

2,360,000

131,283,159

Capital

Markets

1.4%

e

BNP

Paribas

Issuance

BV

into

Goldman

Sachs

Group,

Inc.

(The),

144A,

7.5%,

8/19/24

.................................

United

States

690,000

231,659,787

e

Goldman

Sachs

International

Bank

into

Morgan

Stanley,

144A,

9%,

12/24/24

..........................................

United

States

2,812,000

235,314,414

e

Merrill

Lynch

International

&

Co.

CV

into

Morgan

Stanley,

144A,

10%,

6/04/24

.......................................

United

States

3,000,000

249,508,436

e

UBS

AG

into

Charles

Schwab

Corp.

(The),

144A,

10%,

7/17/24

...

United

States

4,300,000

240,425,439

956,908,076

Chemicals

0.4%

e

JPMorgan

Chase

Bank

NA

into

LyondellBasell

Industries

NV,

144A,

11%,

1/22/24

.......................................

United

States

2,700,000

261,133,672

Communications

Equipment

0.7%

e

Royal

Bank

of

Canada

into

Cisco

Systems,

Inc.,

144A,

8%,

9/03/24

United

States

4,300,000

234,762,478

e

UBS

AG

into

Cisco

Systems,

Inc.,

144A,

8.5%,

6/20/24

.........

United

States

4,595,000

236,333,928

471,096,406

Consumer

Staples

Distribution

&

Retail

0.3%

e

UBS

AG

into

Target

Corp.,

144A,

9%,

9/05/24

................

United

States

1,935,000

226,276,650

Containers

&

Packaging

0.4%

e

Mizuho

Markets

Cayman

LP

into

International

Paper

Co.,

144A,

10.5%,

12/15/23

.....................................

United

States

7,400,000

265,613,807

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

a

a

Country

Shares

a

Value

a

a

a

a

a

a

d

Equity-Linked

Securities

(continued)

Electric

Utilities

1.0%

e

Mizuho

Markets

Cayman

LP

into

NextEra

Energy,

Inc.,

144A,

8%,

3/19/24

...........................................

United

States

3,500,000

$

206,936,372

e

Morgan

Stanley

Finance

II

Ltd.

into

PG&E

Corp.,

144A,

10%,

11/14/23

..........................................

United

States

10,800,000

157,843,003

e

National

Bank

of

Canada

into

NextEra

Energy,

Inc.,

144A,

8.5%,

12/05/23

..........................................

United

States

3,300,000

192,921,987

e

Wells

Fargo

Bank

NA

into

NextEra

Energy,

Inc.,

144A,

8%,

5/08/24

United

States

2,700,000

164,231,976

721,933,338

Financial

Services

0.3%

e

UBS

AG

into

Fidelity

National

Information

Services,

Inc.,

144A,

10%,

10/19/23

..........................................

United

States

3,200,000

183,288,451

Ground

Transportation

0.7%

e

Merrill

Lynch

International

&

Co.

CV

into

Union

Pacific

Corp.,

144A,

9%,

11/01/23

.......................................

United

States

1,240,000

257,171,581

e

UBS

AG

into

Union

Pacific

Corp.,

144A,

8%,

3/13/24

...........

United

States

1,190,000

242,368,337

499,539,918

Insurance

0.3%

e,f

BNP

Paribas

Issuance

BV

into

MetLife,

Inc.,

144A,

9%,

10/23/24

..

United

States

3,800,000

238,138,062

Machinery

0.3%

e

National

Bank

of

Canada

into

Cummins,

Inc.,

144A,

8.5%,

2/13/24

United

States

1,000,000

235,695,765

Media

0.4%

e

J.P.

Morgan

Structured

Products

BV

into

Comcast

Corp.,

144A,

8%,

8/13/24

...........................................

United

States

5,825,000

254,992,091

Metals

&

Mining

0.8%

e

Mizuho

Markets

Cayman

LP

into

Freeport-McMoRan,

Inc.,

144A,

11%,

12/10/24

......................................

United

States

7,539,000

282,750,729

e

Royal

Bank

of

Canada

into

Barrick

Gold

Corp.,

144A,

11%,

3/07/24

Canada

5,600,000

84,484,263

e

Royal

Bank

of

Canada

into

Freeport-McMoRan,

Inc.,

144A,

10%,

5/03/24

...........................................

United

States

4,900,000

191,911,746

559,146,738

Oil,

Gas

&

Consumable

Fuels

1.9%

e

BNP

Paribas

Issuance

BV

into

BP

plc,

144A,

8.5%,

4/24/24

......

United

Kingdom

6,100,000

235,623,052

e

Citigroup

Global

Markets

Holdings,

Inc.

into

BP

plc,

144A,

10%,

12/30/24

..........................................

United

Kingdom

6,600,000

250,861,166

e

Citigroup

Global

Markets

Holdings,

Inc.

into

Exxon

Mobil

Corp.,

144A,

9.5%,

2/22/24

.................................

United

States

2,000,000

236,536,307

e

J.P.

Morgan

Structured

Products

BV

into

Exxon

Mobil

Corp.,

144A,

9%,

9/24/24

........................................

United

States

2,435,000

277,070,734

e

Merrill

Lynch

International

&

Co.

CV

into

Chevron

Corp.,

144A,

10%,

12/04/23

..........................................

United

States

1,650,000

280,586,711

1,280,677,970

Pharmaceuticals

0.9%

e

BNP

Paribas

Issuance

BV

into

Pfizer,

Inc.,

144A,

8.5%,

6/10/24

..

United

States

5,920,000

202,206,958

e

Mizuho

Markets

Cayman

LP

into

Bristol-Myers

Squibb

Co.,

144A,

8.5%,

12/04/23

.....................................

United

States

2,600,000

153,111,582

e

Wells

Fargo

Bank

NA

into

Bristol-Myers

Squibb

Co.,

144A,

7.5%,

5/13/24

...........................................

United

States

3,927,000

235,641,959

590,960,499

Semiconductors

&

Semiconductor

Equipment

2.6%

e

Barclays

Bank

plc

into

Texas

Instruments,

Inc.,

144A,

9%,

10/10/23

United

States

1,600,000

259,820,300

e

Citigroup

Global

Markets

Holdings,

Inc.

into

Intel

Corp.,

144A,

10%,

10/03/24

..........................................

United

States

6,700,000

244,117,167

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

83

a

a

Country

Shares

a

Value

a

a

a

a

a

a

d

Equity-Linked

Securities

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

e

Merrill

Lynch

International

&

Co.

CV

into

Broadcom,

Inc.,

144A,

10%,

12/05/23

..........................................

United

States

500,000

$

284,711,066

e

Mizuho

Markets

Cayman

LP

into

Microchip

Technology,

Inc.,

144A,

10%,

11/03/23

......................................

United

States

4,200,000

319,428,061

e

Morgan

Stanley

Finance

II

Ltd.

into

Microchip

Technology,

Inc.,

144A,

10%,

3/03/25

..................................

United

States

1,850,000

149,248,756

e

National

Bank

of

Canada

into

Analog

Devices,

Inc.,

144A,

8.5%,

7/17/24

...........................................

United

States

1,500,000

275,102,432

e

UBS

AG

into

Texas

Instruments,

Inc.,

144A,

8.5%,

8/07/24

......

United

States

1,583,000

261,399,217

1,793,826,999

Specialty

Retail

0.4%

e

Citigroup

Global

Markets

Holdings,

Inc.

into

Home

Depot,

Inc.

(The),

144A,

8.5%,

6/12/24

.................................

United

States

811,000

252,551,848

Total

Equity-Linked

Securities

(Cost

$12,420,919,545)

...........................

11,942,773,789

Convertible

Preferred

Stocks

0.0%

†

Financial

Services

0.0%

†

b

FNMA,

5.375%

.......................................

United

States

4,240

24,592,000

b

Total

Convertible

Preferred

Stocks

(Cost

$339,906,139)

..........................

24,592,000

Preferred

Stocks

0.0%

†

Financial

Services

0.0%

†

b

FNMA,

8.25%,

S

......................................

United

States

4,000,000

8,880,000

b

Total

Preferred

Stocks

(Cost

$93,801,500)

......................................

8,880,000

Principal

Amount

*

Convertible

Bonds

0.0%

†

Media

0.0%

†

DISH

Network

Corp.

,

Senior

Note

,

2.375

%

,

3/15/24

............

United

States

25,000,000

24,093,750

Total

Convertible

Bonds

(Cost

$24,704,849)

....................................

24,093,750

Corporate

Bonds

48.1%

Aerospace

&

Defense

1.8%

Boeing

Co.

(The)

,

Senior

Bond,

3.2%,

3/01/29

............................

United

States

74,000,000

65,036,215

Senior

Bond,

3.625%,

2/01/31

..........................

United

States

59,000,000

50,999,297

Senior

Note,

2.196%,

2/04/26

..........................

United

States

45,000,000

41,328,542

Senior

Note,

5.04%,

5/01/27

...........................

United

States

180,000,000

175,820,002

Senior

Note,

3.25%,

2/01/28

...........................

United

States

60,000,000

54,150,084

Senior

Note,

5.15%,

5/01/30

...........................

United

States

390,000,000

372,765,869

e

Bombardier,

Inc.

,

Senior

Bond

,

144A,

7.5

%

,

3/15/25

...........

Canada

28,076,000

27,991,665

Textron,

Inc.

,

Senior

Bond,

3%,

6/01/30

.............................

United

States

59,049,000

49,736,712

Senior

Bond,

2.45%,

3/15/31

...........................

United

States

40,000,000

31,813,192

e

TransDigm,

Inc.

,

Senior

Secured

Note,

144A,

6.25%,

3/15/26

...............

United

States

236,000,000

232,095,536

Senior

Secured

Note,

144A,

6.75%,

8/15/28

...............

United

States

80,000,000

78,859,086

Senior

Secured

Note,

144A,

6.875%,

12/15/30

.............

United

States

50,000,000

49,085,960

1,229,682,160

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

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)

Air

Freight

&

Logistics

0.0%

†

FedEx

Corp.

,

Senior

Bond

,

2.4

%

,

5/15/31

...................

United

States

29,000,000

$

23,278,557

Automobile

Components

0.5%

e

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

85,000,000

70,372,503

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Bond,

5%,

5/31/26

.............................

United

States

57,000,000

54,492,125

Senior

Bond,

4.875%,

3/15/27

..........................

United

States

34,757,000

32,051,672

Senior

Bond,

5.25%,

4/30/31

...........................

United

States

45,000,000

37,961,519

Senior

Note,

5%,

7/15/29

.............................

United

States

130,000,000

112,147,880

g

Senior

Note,

5.25%,

7/15/31

...........................

United

States

40,500,000

33,551,617

340,577,316

Automobiles

0.8%

Ford

Motor

Co.

,

Senior

Bond,

4.346%,

12/08/26

.........................

United

States

127,500,000

122,364,759

Senior

Bond,

3.25%,

2/12/32

...........................

United

States

107,500,000

82,951,666

Senior

Bond,

6.1%,

8/19/32

............................

United

States

139,000,000

131,069,035

General

Motors

Co.

,

Senior

Bond,

5%,

10/01/28

............................

United

States

25,000,000

23,882,099

Senior

Bond,

5.6%,

10/15/32

...........................

United

States

35,000,000

32,707,086

Senior

Bond,

5.15%,

4/01/38

...........................

United

States

105,000,000

87,778,439

e

Volkswagen

Group

of

America

Finance

LLC

,

Senior

Note

,

144A,

1.25

%

,

11/24/25

.....................................

Germany

97,000,000

88,094,355

568,847,439

Banks

3.4%

Bank

of

America

Corp.

,

h

AA,

Junior

Sub.

Bond,

6.1%

to

3/16/25,

FRN

thereafter,

Perpetual

United

States

70,000,000

68,721,485

h

X,

Junior

Sub.

Bond,

6.25%

to

9/04/24,

FRN

thereafter,

Perpetual

United

States

50,000,000

49,316,648

Senior

Bond,

3.419%

to

12/19/27,

FRN

thereafter,

12/20/28

...

United

States

45,000,000

40,383,478

Senior

Bond,

1.922%

to

10/23/30,

FRN

thereafter,

10/24/31

...

United

States

70,000,000

52,837,235

Senior

Bond,

4.571%

to

4/26/32,

FRN

thereafter,

4/27/33

.....

United

States

115,000,000

102,157,965

Barclays

plc

,

Senior

Bond,

4.375%,

1/12/26

..........................

United

Kingdom

70,000,000

67,104,320

Senior

Bond,

4.337%,

1/10/28

..........................

United

Kingdom

31,000,000

28,758,603

Senior

Bond,

2.645%

to

6/23/30,

FRN

thereafter,

6/24/31

.....

United

Kingdom

31,000,000

23,986,835

Senior

Bond,

5.746%

to

8/08/32,

FRN

thereafter,

8/09/33

.....

United

Kingdom

100,000,000

92,361,464

Senior

Bond,

7.437%

to

11/01/32,

FRN

thereafter,

11/02/33

....

United

Kingdom

75,000,000

77,083,142

i

Senior

Bond,

FRN,

6.692%,

(SOFR

+

2.62%),

9/13/34

........

United

Kingdom

70,000,000

68,377,476

Senior

Note,

7.325%

to

11/01/25,

FRN

thereafter,

11/02/26

....

United

Kingdom

30,000,000

30,463,446

Senior

Note,

5.501%

to

8/08/27,

FRN

thereafter,

8/09/28

......

United

Kingdom

80,000,000

76,914,699

Sub.

Bond,

7.119%

to

6/26/33,

FRN

thereafter,

6/27/34

.......

United

Kingdom

30,000,000

28,920,211

Citigroup,

Inc.

,

h,i

Junior

Sub.

Bond,

FRN,

9.699%,

(3-month

SOFR

+

4.33%),

Perpetual

.........................................

United

States

118,000,000

118,015,190

h,i

D,

Junior

Sub.

Bond,

FRN,

9.092%,

(3-month

SOFR

+

3.728%),

Perpetual

.........................................

United

States

55,000,000

54,980,321

h

M,

Junior

Sub.

Bond,

6.3%

to

5/14/24,

FRN

thereafter,

Perpetual

United

States

95,000,000

92,701,057

Senior

Bond,

3.52%

to

10/26/27,

FRN

thereafter,

10/27/28

....

United

States

35,000,000

31,681,551

Senior

Bond,

6.27%

to

11/16/32,

FRN

thereafter,

11/17/33

.....

United

States

60,000,000

59,863,895

Senior

Note,

1.462%

to

6/08/26,

FRN

thereafter,

6/09/27

......

United

States

20,000,000

17,683,675

Sub.

Bond,

4.125%,

7/25/28

...........................

United

States

25,000,000

22,762,261

Sub.

Bond,

6.174%

to

5/24/33,

FRN

thereafter,

5/25/34

.......

United

States

100,000,000

95,630,961

Fifth

Third

Bancorp

,

Senior

Note,

3.65%,

1/25/24

...........................

United

States

72,656,000

71,965,050

Senior

Note,

6.339%

to

7/26/28,

FRN

thereafter,

7/27/29

......

United

States

10,000,000

9,883,995

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

85

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

Fifth

Third

Bank

NA

,

Senior

Note

,

5.852%

to

10/26/24,

FRN

thereafter

,

10/27/25

..................................

United

States

65,185,000

$

64,150,698

h

JPMorgan

Chase

&

Co.

,

i

Q,

Junior

Sub.

Bond,

FRN,

8.884%,

(3-month

SOFR

+

3.512%),

Perpetual

.........................................

United

States

60,700,000

60,891,812

i

R,

Junior

Sub.

Bond,

FRN,

8.934%,

(3-month

SOFR

+

3.562%),

Perpetual

.........................................

United

States

55,000,000

55,324,060

S,

Junior

Sub.

Bond,

6.75%

to

1/31/24,

FRN

thereafter,

Perpetual

United

States

65,000,000

65,027,619

KeyBank

NA

,

Senior

Note,

5.85%,

11/15/27

..........................

United

States

50,000,000

47,579,025

Sub.

Bond,

4.9%,

8/08/32

.............................

United

States

35,000,000

28,196,072

PNC

Financial

Services

Group,

Inc.

(The)

,

Senior

Bond,

6.037%

to

10/27/32,

FRN

thereafter,

10/28/33

...

United

States

70,000,000

67,978,705

Senior

Bond,

5.068%

to

1/23/33,

FRN

thereafter,

1/24/34

.....

United

States

40,000,000

36,300,223

Royal

Bank

of

Canada

,

Senior

Bond

,

5

%

,

2/01/33

.............

Canada

50,000,000

46,630,438

Truist

Bank

,

Sub.

Bond

,

2.25

%

,

3/11/30

.....................

United

States

42,645,000

32,673,494

Truist

Financial

Corp.

,

Senior

Bond,

5.122%

to

1/25/33,

FRN

thereafter,

1/26/34

.....

United

States

55,000,000

49,203,072

Senior

Note,

6.047%

to

6/07/26,

FRN

thereafter,

6/08/27

......

United

States

45,000,000

44,526,126

Sub.

Bond,

4.916%

to

7/27/32,

FRN

thereafter,

7/28/33

.......

United

States

95,000,000

80,657,823

US

Bancorp

,

Senior

Bond,

5.85%

to

10/20/32,

FRN

thereafter,

10/21/33

....

United

States

45,000,000

42,632,200

Senior

Bond,

5.836%

to

6/09/33,

FRN

thereafter,

6/12/34

.....

United

States

25,000,000

23,598,168

Senior

Note,

5.775%

to

6/11/28,

FRN

thereafter,

6/12/29

......

United

States

25,000,000

24,348,371

Wells

Fargo

&

Co.

,

h,i

S,

Junior

Sub.

Bond,

FRN,

5.9%,

(3-month

USD

LIBOR

+

3.11%),

Perpetual

.........................................

United

States

60,000,000

58,947,306

Senior

Bond,

4.478%

to

4/03/30,

FRN

thereafter,

4/04/31

.....

United

States

20,000,000

18,150,779

Senior

Bond,

4.897%

to

7/24/32,

FRN

thereafter,

7/25/33

.....

United

States

50,000,000

45,271,713

Senior

Bond,

5.389%

to

4/23/33,

FRN

thereafter,

4/24/34

.....

United

States

30,000,000

28,058,662

Senior

Bond,

5.557%

to

7/24/33,

FRN

thereafter,

7/25/34

.....

United

States

40,000,000

37,897,185

2,340,598,514

Beverages

0.2%

Coca-Cola

Co.

(The)

,

Senior

Bond

,

1.65

%

,

6/01/30

............

United

States

110,000,000

88,206,219

Constellation

Brands,

Inc.

,

Senior

Bond

,

3.15

%

,

8/01/29

........

United

States

35,000,000

30,691,009

118,897,228

Biotechnology

0.3%

AbbVie,

Inc.

,

Senior

Bond,

4.5%,

5/14/35

............................

United

States

45,000,000

40,686,009

Senior

Note,

3.2%,

11/21/29

...........................

United

States

70,000,000

61,807,444

Amgen,

Inc.

,

Senior

Bond,

2.45%,

2/21/30

...........................

United

States

25,000,000

20,714,606

Senior

Bond,

5.25%,

3/02/33

...........................

United

States

50,000,000

47,820,059

Senior

Note,

5.25%,

3/02/30

...........................

United

States

20,000,000

19,547,651

190,575,769

Broadline

Retail

0.1%

Amazon.com,

Inc.

,

Senior

Bond

,

3.6

%

,

4/13/32

...............

United

States

67,500,000

59,876,773

Building

Products

0.4%

e

AmeriTex

HoldCo

Intermediate

LLC

,

Senior

Secured

Note

,

144A,

10.25

%

,

10/15/28

....................................

United

States

40,000,000

39,600,000

e

Camelot

Return

Merger

Sub,

Inc.

,

Senior

Secured

Note

,

144A,

8.75

%

,

8/01/28

.....................................

United

States

50,000,000

48,296,060

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

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)

Building

Products

(continued)

Carrier

Global

Corp.

,

Senior

Bond,

2.7%,

2/15/31

............................

United

States

22,500,000

$

18,255,392

Senior

Note,

2.722%,

2/15/30

..........................

United

States

98,200,000

81,898,549

e

Emerald

Debt

Merger

Sub

LLC

,

Senior

Secured

Note

,

144A,

6.625

%

,

12/15/30

....................................

United

States

50,000,000

48,196,234

Johnson

Controls

International

plc

/

Tyco

Fire

&

Security

Finance

SCA

,

Senior

Bond

,

4.9

%

,

12/01/32

.......................

United

States

39,500,000

37,775,571

274,021,806

Capital

Markets

0.9%

Brookfield

Finance,

Inc.

,

Senior

Bond

,

4.85

%

,

3/29/29

..........

Canada

38,708,000

36,661,811

Charles

Schwab

Corp.

(The)

,

Senior

Bond,

5.853%

to

5/18/33,

FRN

thereafter,

5/19/34

.....

United

States

30,000,000

28,557,416

Senior

Bond,

6.136%

to

8/23/33,

FRN

thereafter,

8/24/34

.....

United

States

30,000,000

29,199,183

Senior

Note,

5.643%

to

5/18/28,

FRN

thereafter,

5/19/29

......

United

States

25,000,000

24,497,844

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond,

3.814%

to

4/22/28,

FRN

thereafter,

4/23/29

.....

United

States

21,000,000

19,078,836

Senior

Bond,

4.223%

to

4/30/28,

FRN

thereafter,

5/01/29

.....

United

States

20,000,000

18,507,997

Senior

Bond,

2.6%,

2/07/30

............................

United

States

16,250,000

13,318,318

Senior

Bond,

2.65%

to

10/20/31,

FRN

thereafter,

10/21/32

....

United

States

58,600,000

45,257,548

Senior

Note,

3.5%,

4/01/25

............................

United

States

73,000,000

70,309,294

Senior

Note,

3.8%,

3/15/30

............................

United

States

25,000,000

22,071,619

Morgan

Stanley

,

Senior

Bond,

2.699%

to

1/21/30,

FRN

thereafter,

1/22/31

.....

United

States

30,000,000

24,543,583

Senior

Bond,

3.622%

to

3/31/30,

FRN

thereafter,

4/01/31

.....

United

States

23,600,000

20,341,328

Senior

Bond,

2.239%

to

7/20/31,

FRN

thereafter,

7/21/32

.....

United

States

30,482,000

22,989,094

Senior

Bond,

2.511%

to

10/19/31,

FRN

thereafter,

10/20/32

....

United

States

81,000,000

62,006,810

Senior

Bond,

6.342%

to

10/17/32,

FRN

thereafter,

10/18/33

...

United

States

35,000,000

35,218,059

Senior

Bond,

5.25%

to

4/20/33,

FRN

thereafter,

4/21/34

......

United

States

30,000,000

27,873,257

Senior

Bond,

5.424%

to

7/20/33,

FRN

thereafter,

7/21/34

.....

United

States

30,000,000

28,311,687

Senior

Note,

1.512%

to

7/19/26,

FRN

thereafter,

7/20/27

......

United

States

25,000,000

22,097,610

Senior

Note,

5.123%

to

1/31/28,

FRN

thereafter,

2/01/29

......

United

States

30,000,000

28,901,433

Sub.

Bond,

5.948%

to

1/18/33,

FRN

thereafter,

1/19/38

.......

United

States

37,095,000

34,698,937

614,441,664

Chemicals

1.0%

Celanese

US

Holdings

LLC

,

Senior

Bond,

6.379%,

7/15/32

..........................

United

States

50,000,000

48,231,554

Senior

Note,

6.165%,

7/15/27

..........................

United

States

20,000,000

19,731,585

Senior

Note,

6.35%,

11/15/28

..........................

United

States

20,000,000

19,758,914

Senior

Note,

6.55%,

11/15/30

..........................

United

States

20,000,000

19,582,671

e

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

6.5

%

,

5/15/26

Switzerland

115,000,000

107,413,549

e

CVR

Partners

LP

/

CVR

Nitrogen

Finance

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/28

...........................

United

States

25,000,000

22,493,474

g

Dow

Chemical

Co.

(The)

,

Senior

Bond

,

6.3

%

,

3/15/33

..........

United

States

35,000,000

36,145,391

Huntsman

International

LLC

,

Senior

Bond

,

4.5

%

,

5/01/29

.......

United

States

25,000,000

22,625,993

e

International

Flavors

&

Fragrances,

Inc.

,

Senior

Bond,

144A,

2.3%,

11/01/30

......................

United

States

130,000,000

97,902,775

Senior

Note,

144A,

1.832%,

10/15/27

....................

United

States

20,000,000

16,625,097

e

Olin

Corp.

,

Senior

Note

,

144A,

9.5

%

,

6/01/25

................

United

States

30,000,000

31,190,910

e

Rain

Carbon,

Inc.

,

Senior

Secured

Note

,

144A,

12.25

%

,

9/01/29

..

United

States

35,000,000

36,750,000

e

Rain

CII

Carbon

LLC

/

CII

Carbon

Corp.

,

Secured

Note

,

144A,

7.25

%

,

4/01/25

.....................................

United

States

717,000

696,241

e

SCIH

Salt

Holdings,

Inc.

,

Senior

Note,

144A,

6.625%,

5/01/29

.....................

United

States

119,500,000

102,547,384

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

87

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Chemicals

(continued)

e

SCIH

Salt

Holdings,

Inc.,

(continued)

Senior

Secured

Note,

144A,

4.875%,

5/01/28

..............

United

States

143,500,000

$

126,795,423

708,490,961

Commercial

Services

&

Supplies

0.4%

e

ADT

Security

Corp.

(The)

,

Senior

Secured

Note

,

144A,

4.125

%

,

8/01/29

...........................................

United

States

20,000,000

16,933,100

e

APX

Group,

Inc.

,

Senior

Note,

144A,

5.75%,

7/15/29

......................

United

States

100,000,000

84,378,710

Senior

Secured

Note,

144A,

6.75%,

2/15/27

...............

United

States

140,000,000

134,592,143

e

Madison

IAQ

LLC

,

Senior

Secured

Note

,

144A,

4.125

%

,

6/30/28

..

United

States

36,500,000

31,541,884

267,445,837

Communications

Equipment

1.1%

e

CommScope

Technologies

LLC

,

Senior

Bond,

144A,

6%,

6/15/25

........................

United

States

350,000,000

333,640,349

Senior

Bond,

144A,

5%,

3/15/27

........................

United

States

50,000,000

28,457,264

e

CommScope,

Inc.

,

Senior

Note,

144A,

8.25%,

3/01/27

......................

United

States

150,000,000

98,236,500

Senior

Note,

144A,

7.125%,

7/01/28

.....................

United

States

140,000,000

84,000,000

Senior

Secured

Note,

144A,

6%,

3/01/26

..................

United

States

236,085,000

220,644,829

764,978,942

Construction

&

Engineering

0.1%

Quanta

Services,

Inc.

,

Senior

Bond

,

2.9

%

,

10/01/30

...........

United

States

110,000,000

89,798,281

Consumer

Finance

2.5%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Note

,

5.75

%

,

6/06/28

.................................

Ireland

40,000,000

39,108,748

Capital

One

Financial

Corp.

,

Senior

Bond,

3.8%,

1/31/28

............................

United

States

47,300,000

42,692,201

Senior

Bond,

5.268%

to

5/09/32,

FRN

thereafter,

5/10/33

.....

United

States

50,000,000

44,255,595

Senior

Bond,

5.817%

to

1/31/33,

FRN

thereafter,

2/01/34

.....

United

States

85,000,000

76,668,801

Senior

Note,

4.985%

to

7/23/25,

FRN

thereafter,

7/24/26

......

United

States

40,000,000

38,826,669

Senior

Note,

4.927%

to

5/09/27,

FRN

thereafter,

5/10/28

......

United

States

159,532,733

151,465,557

Senior

Note,

6.312%

to

6/07/28,

FRN

thereafter,

6/08/29

......

United

States

75,000,000

73,335,964

Senior

Note,

5.247%

to

7/25/29,

FRN

thereafter,

7/26/30

......

United

States

40,000,000

37,105,747

Sub.

Bond,

4.2%,

10/29/25

............................

United

States

83,500,000

79,638,721

Sub.

Bond,

3.75%,

7/28/26

............................

United

States

102,800,000

95,353,092

Ford

Motor

Credit

Co.

LLC

,

Senior

Bond,

4.134%,

8/04/25

..........................

United

States

50,000,000

47,457,430

Senior

Bond,

4.389%,

1/08/26

..........................

United

States

25,000,000

23,622,488

Senior

Bond,

5.113%,

5/03/29

..........................

United

States

75,000,000

68,730,322

Senior

Note,

2.3%,

2/10/25

............................

United

States

35,000,000

32,862,627

Senior

Note,

5.125%,

6/16/25

..........................

United

States

108,015,000

104,658,212

Senior

Note,

3.375%,

11/13/25

.........................

United

States

32,000,000

29,717,312

Senior

Note,

6.95%,

6/10/26

...........................

United

States

35,000,000

34,995,100

Senior

Note,

2.7%,

8/10/26

............................

United

States

60,000,000

53,602,242

Senior

Note,

4.95%,

5/28/27

...........................

United

States

115,000,000

108,073,933

Senior

Note,

6.8%,

5/12/28

............................

United

States

68,000,000

67,977,443

Senior

Note,

7.35%,

3/06/30

...........................

United

States

45,000,000

45,620,235

General

Motors

Financial

Co.,

Inc.

,

Senior

Bond,

4.35%,

1/17/27

...........................

United

States

40,000,000

37,666,871

Senior

Bond,

3.6%,

6/21/30

............................

United

States

37,720,000

31,595,958

Senior

Bond,

3.1%,

1/12/32

............................

United

States

80,000,000

61,944,643

g

Senior

Bond,

6.4%,

1/09/33

............................

United

States

50,000,000

48,873,045

Senior

Note,

5%,

4/09/27

.............................

United

States

50,000,000

48,014,988

Senior

Note,

2.4%,

4/10/28

............................

United

States

35,000,000

29,799,419

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Consumer

Finance

(continued)

General

Motors

Financial

Co.,

Inc.,

(continued)

Senior

Note,

5.8%,

6/23/28

............................

United

States

50,000,000

$

48,874,203

Senior

Note,

4.3%,

4/06/29

............................

United

States

69,000,000

61,936,695

Senior

Note,

5.85%,

4/06/30

...........................

United

States

20,000,000

19,170,205

John

Deere

Capital

Corp.

,

Senior

Bond

,

4.35

%

,

9/15/32

........

United

States

40,000,000

37,226,957

1,720,871,423

Consumer

Staples

Distribution

&

Retail

0.2%

e

7-Eleven,

Inc.

,

Senior

Bond

,

144A,

1.8

%

,

2/10/31

.............

United

States

85,000,000

64,501,614

Target

Corp.

,

Senior

Bond

,

4.5

%

,

9/15/32

...................

United

States

90,000,000

83,779,303

148,280,917

Containers

&

Packaging

1.4%

e,j

ARD

Finance

SA

,

Senior

Secured

Note

,

144A,

PIK,

6.5

%

,

6/30/27

.

Luxembourg

25,144,215

19,010,055

e

Ardagh

Metal

Packaging

Finance

USA

LLC

/

Ardagh

Metal

Packaging

Finance

plc

,

Senior

Note

,

144A,

4

%

,

9/01/29

.......

United

States

30,000,000

23,517,783

e

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note,

144A,

5.25%,

8/15/27

......................

United

States

214,440,000

179,233,241

Senior

Secured

Note,

144A,

5.25%,

4/30/25

...............

United

States

25,669,000

25,048,614

Senior

Secured

Note,

144A,

4.125%,

8/15/26

..............

United

States

50,000,000

45,751,829

e

Mauser

Packaging

Solutions

Holding

Co.

,

Secured

Note,

144A,

9.25%,

4/15/27

.....................

United

States

380,000,000

332,680,462

Senior

Secured

Note,

144A,

7.875%,

8/15/26

..............

United

States

290,000,000

280,105,461

e

Pactiv

Evergreen

Group

Issuer,

Inc.

/

Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

.............

United

States

60,000,000

53,316,000

e

Sealed

Air

Corp.

,

Senior

Note

,

144A,

6.125

%

,

2/01/28

..........

United

States

20,000,000

19,391,713

978,055,158

Diversified

REITs

0.2%

VICI

Properties

LP

,

Senior

Bond,

5.125%,

5/15/32

..........................

United

States

60,000,000

53,768,298

Senior

Note,

4.95%,

2/15/30

...........................

United

States

43,357,000

39,726,616

e

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note

,

144A,

4.25

%

,

12/01/26

..........................................

United

States

82,000,000

76,475,750

169,970,664

Diversified

Telecommunication

Services

0.2%

e

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

5.125

%

,

5/01/27

................................

United

States

70,000,000

65,293,284

Verizon

Communications,

Inc.

,

Senior

Bond

,

4.016

%

,

12/03/29

...

United

States

50,000,000

45,362,108

110,655,392

Electric

Utilities

1.9%

American

Electric

Power

Co.,

Inc.

,

Senior

Bond,

5.95%,

11/01/32

..........................

United

States

30,000,000

29,946,451

Senior

Bond,

5.625%,

3/01/33

..........................

United

States

30,000,000

29,063,776

Duke

Energy

Corp.

,

Senior

Bond

,

4.5

%

,

8/15/32

..............

United

States

56,891,000

51,215,821

NextEra

Energy

Capital

Holdings,

Inc.

,

Senior

Note

,

1.875

%

,

1/15/27

United

States

65,000,000

57,597,136

NRG

Energy,

Inc.

,

e

Senior

Bond,

144A,

3.625%,

2/15/31

.....................

United

States

65,000,000

49,386,370

Senior

Note,

5.75%,

1/15/28

...........................

United

States

18,075,000

16,966,941

e

Senior

Note,

144A,

3.375%,

2/15/29

.....................

United

States

38,300,000

31,035,742

e

Senior

Secured

Bond,

144A,

7%,

3/15/33

.................

United

States

30,000,000

29,022,438

e

Senior

Secured

Note,

144A,

2.45%,

12/02/27

..............

United

States

30,000,000

25,455,974

Pacific

Gas

and

Electric

Co.

,

Senior

Bond,

4.55%,

7/01/30

...........................

United

States

136,500,000

120,733,035

Senior

Bond,

6.15%,

1/15/33

...........................

United

States

50,000,000

47,476,289

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

89

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Electric

Utilities

(continued)

Pacific

Gas

and

Electric

Co.,

(continued)

Senior

Bond,

6.4%,

6/15/33

............................

United

States

30,000,000

$

28,945,776

Senior

Note,

4.95%,

6/08/25

...........................

United

States

19,250,000

18,805,287

Senior

Note,

3.15%,

1/01/26

...........................

United

States

50,000,000

46,524,172

Senior

Note,

6.1%,

1/15/29

............................

United

States

49,000,000

47,897,738

PG&E

Corp.

,

Senior

Secured

Note

,

5

%

,

7/01/28

..............

United

States

107,284,000

97,292,585

Southern

Co.

(The)

,

Senior

Bond,

5.7%,

10/15/32

...........................

United

States

45,000,000

44,250,415

Senior

Bond,

5.2%,

6/15/33

............................

United

States

50,000,000

47,299,933

Senior

Note,

4.85%,

6/15/28

...........................

United

States

55,000,000

53,193,430

e

Vistra

Operations

Co.

LLC

,

Senior

Note,

144A,

5.5%,

9/01/26

.......................

United

States

87,010,000

83,059,389

Senior

Note,

144A,

5%,

7/31/27

........................

United

States

62,345,000

57,384,738

Senior

Note,

144A,

4.375%,

5/01/29

.....................

United

States

139,000,000

119,617,409

Senior

Note,

144A,

7.75%,

10/15/31

.....................

United

States

50,000,000

49,300,456

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

................

United

States

35,000,000

30,633,088

Senior

Secured

Bond,

144A,

6.95%,

10/15/33

..............

United

States

30,000,000

29,459,694

Senior

Secured

Note,

144A,

3.55%,

7/15/24

...............

United

States

25,000,000

24,387,412

Senior

Secured

Note,

144A,

3.7%,

1/30/27

................

United

States

33,500,000

30,581,928

1,296,533,423

Electrical

Equipment

0.1%

e

Regal

Rexnord

Corp.

,

Senior

Bond,

144A,

6.4%,

4/15/33

.......................

United

States

25,000,000

24,106,301

Senior

Note,

144A,

6.05%,

4/15/28

......................

United

States

35,000,000

34,067,922

Senior

Note,

144A,

6.3%,

2/15/30

.......................

United

States

25,000,000

24,168,568

82,342,791

Electronic

Equipment,

Instruments

&

Components

0.1%

Flex

Ltd.

,

Senior

Note

,

4.75

%

,

6/15/25

.....................

United

States

50,000,000

48,802,324

Energy

Equipment

&

Services

0.5%

e

Schlumberger

Holdings

Corp.

,

Senior

Note

,

144A,

3.9

%

,

5/17/28

..

United

States

42,500,000

39,508,026

e

Weatherford

International

Ltd.

,

Senior

Note,

144A,

8.625%,

4/30/30

.....................

United

States

245,000,000

247,092,300

Senior

Secured

Note,

144A,

6.5%,

9/15/28

................

United

States

70,000,000

70,075,950

356,676,276

Entertainment

0.5%

Netflix,

Inc.

,

Senior

Bond,

4.375%,

11/15/26

.........................

United

States

100,000,000

96,513,510

Senior

Bond,

4.875%,

4/15/28

..........................

United

States

89,300,000

86,620,330

Senior

Bond,

5.875%,

11/15/28

.........................

United

States

50,000,000

50,408,050

Warnermedia

Holdings,

Inc.

,

Senior

Note

,

4.279

%

,

3/15/32

......

United

States

100,000,000

84,941,211

318,483,101

Financial

Services

0.3%

Fiserv,

Inc.

,

Senior

Bond,

4.2%,

10/01/28

...........................

United

States

52,000,000

48,783,574

Senior

Bond,

3.5%,

7/01/29

............................

United

States

40,000,000

35,708,558

Senior

Bond,

2.65%,

6/01/30

...........................

United

States

38,000,000

31,243,183

Senior

Bond,

5.6%,

3/02/33

............................

United

States

30,000,000

29,107,649

e

Woodside

Finance

Ltd.

,

Senior

Bond

,

144A,

4.5

%

,

3/04/29

......

Australia

100,000,000

92,487,427

237,330,391

Food

Products

0.7%

e

Darling

Ingredients,

Inc.

,

Senior

Note

,

144A,

6

%

,

6/15/30

.......

United

States

30,000,000

28,435,730

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Food

Products

(continued)

e

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

Luxembourg

SARL

,

Senior

Bond

,

144A,

6.75

%

,

3/15/34

......................

United

States

50,000,000

$

48,694,750

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Note,

5.125%,

2/01/28

..........................

United

States

30,000,000

28,576,878

Senior

Note,

5.75%,

4/01/33

...........................

United

States

110,000,000

100,739,474

Pilgrim's

Pride

Corp.

,

Senior

Bond,

6.25%,

7/01/33

...........................

United

States

68,000,000

63,990,669

f

Senior

Bond,

6.875%,

5/15/34

..........................

United

States

40,000,000

39,303,092

e

Senior

Bond,

144A,

5.875%,

9/30/27

.....................

United

States

50,000,000

50,758,750

e

Post

Holdings,

Inc.

,

Senior

Bond,

144A,

5.625%,

1/15/28

.....................

United

States

59,800,000

56,590,737

Senior

Bond,

144A,

4.5%,

9/15/31

.......................

United

States

50,000,000

41,677,675

458,767,755

Ground

Transportation

0.3%

e

Ashtead

Capital,

Inc.

,

Senior

Bond,

144A,

4.375%,

8/15/27

.....................

United

Kingdom

34,500,000

32,092,918

Senior

Bond,

144A,

5.55%,

5/30/33

......................

United

Kingdom

55,000,000

51,086,951

Senior

Bond,

144A,

5.95%,

10/15/33

.....................

United

Kingdom

35,000,000

33,264,192

Union

Pacific

Corp.

,

Senior

Bond

,

4.5

%

,

1/20/33

..............

United

States

73,000,000

68,030,021

184,474,082

Health

Care

Equipment

&

Supplies

0.8%

e

Bausch

&

Lomb

Escrow

Corp.

,

Senior

Secured

Note

,

144A,

8.375

%

,

10/01/28

..........................................

United

States

45,000,000

45,189,900

Baxter

International,

Inc.

,

Senior

Bond

,

2.539

%

,

2/01/32

........

United

States

15,935,000

12,345,047

DENTSPLY

SIRONA,

Inc.

,

Senior

Bond

,

3.25

%

,

6/01/30

........

United

States

51,249,000

42,924,212

GE

HealthCare

Technologies,

Inc.

,

WI

,

Senior

Note

,

5.905

%

,

11/22/32

..........................................

United

States

90,000,000

89,350,917

e

Medline

Borrower

LP

,

Senior

Note,

144A,

5.25%,

10/01/29

.....................

United

States

85,000,000

73,568,027

Senior

Secured

Note,

144A,

3.875%,

4/01/29

..............

United

States

319,000,000

269,973,719

533,351,822

Health

Care

Providers

&

Services

7.7%

Centene

Corp.

,

Senior

Bond,

2.5%,

3/01/31

............................

United

States

35,000,000

26,928,601

Senior

Note,

4.25%,

12/15/27

..........................

United

States

81,745,000

75,431,425

Senior

Note,

4.625%,

12/15/29

.........................

United

States

166,100,000

149,788,149

Senior

Note,

3.375%,

2/15/30

..........................

United

States

47,000,000

39,254,729

e

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

600,000,000

319,500,000

Secured

Note,

144A,

6.125%,

4/01/30

....................

United

States

585,000,000

298,505,025

Senior

Note,

144A,

6.875%,

4/01/28

.....................

United

States

565,000,000

301,371,000

Senior

Secured

Note,

144A,

8%,

3/15/26

..................

United

States

567,065,000

541,102,439

Senior

Secured

Note,

144A,

5.625%,

3/15/27

..............

United

States

309,000,000

265,430,877

Senior

Secured

Note,

144A,

8%,

12/15/27

.................

United

States

382,000,000

356,661,940

Senior

Secured

Note,

144A,

6%,

1/15/29

..................

United

States

280,700,104

226,992,608

CVS

Health

Corp.

,

Senior

Bond,

4.3%,

3/25/28

............................

United

States

50,000,000

47,335,587

Senior

Bond,

1.875%,

2/28/31

..........................

United

States

70,000,000

53,424,496

Senior

Bond,

5.25%,

2/21/33

...........................

United

States

120,000,000

113,738,154

Senior

Bond,

4.78%,

3/25/38

...........................

United

States

61,925,000

53,357,489

Senior

Bond,

5.05%,

3/25/48

...........................

United

States

40,000,000

33,264,006

e

DaVita,

Inc.

,

Senior

Bond,

144A,

3.75%,

2/15/31

......................

United

States

100,000,000

76,105,430

Senior

Note,

144A,

4.625%,

6/01/30

.....................

United

States

313,500,000

257,810,267

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

91

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Providers

&

Services

(continued)

e

Fresenius

Medical

Care

US

Finance

III,

Inc.

,

Senior

Bond,

144A,

2.375%,

2/16/31

.....................

Germany

30,000,000

$

21,758,392

Senior

Bond,

144A,

3%,

12/01/31

.......................

Germany

30,941,000

23,050,812

HCA,

Inc.

,

Senior

Bond,

5%,

3/15/24

.............................

United

States

114,800,000

114,229,238

Senior

Bond,

5.625%,

9/01/28

..........................

United

States

115,000,000

112,201,192

Senior

Bond,

4.125%,

6/15/29

..........................

United

States

38,500,000

34,871,283

Senior

Bond,

2.375%,

7/15/31

..........................

United

States

28,716,000

21,998,954

Senior

Bond,

5.5%,

6/01/33

............................

United

States

60,000,000

56,786,461

WI,

Senior

Note,

3.625%,

3/15/32

.......................

United

States

82,954,000

68,805,139

Humana,

Inc.

,

Senior

Bond

,

5.875

%

,

3/01/33

.................

United

States

35,000,000

34,821,178

e

Kedrion

SpA

,

Senior

Secured

Note

,

144A,

6.5

%

,

9/01/29

........

Italy

35,000,000

30,187,500

e

MPH

Acquisition

Holdings

LLC

,

g

Senior

Note,

144A,

5.75%,

11/01/28

.....................

United

States

140,000,000

105,275,100

Senior

Secured

Note,

144A,

5.5%,

9/01/28

................

United

States

175,000,000

148,837,867

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.95

%

,

6/30/30

..........

United

States

58,755,000

49,368,794

Tenet

Healthcare

Corp.

,

Secured

Note,

6.25%,

2/01/27

..........................

United

States

100,000,000

96,856,790

Senior

Bond,

6.875%,

11/15/31

.........................

United

States

55,258,000

53,038,645

Senior

Note,

6.125%,

10/01/28

.........................

United

States

425,000,000

399,364,000

Senior

Secured

Note,

4.25%,

6/01/29

....................

United

States

130,000,000

112,018,764

Senior

Secured

Note,

4.375%,

1/15/30

...................

United

States

32,000,000

27,564,777

Senior

Secured

Note,

6.125%,

6/15/30

...................

United

States

386,000,000

362,376,530

e

Senior

Secured

Note,

144A,

6.75%,

5/15/31

...............

United

States

122,775,000

118,566,310

UnitedHealth

Group,

Inc.

,

Senior

Bond

,

5.35

%

,

2/15/33

.........

United

States

125,000,000

123,719,444

5,351,699,392

Health

Care

REITs

0.1%

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

g

Senior

Bond,

5.25%,

8/01/26

...........................

United

States

37,000,000

31,567,266

Senior

Bond,

5%,

10/15/27

............................

United

States

80,000,000

62,117,824

93,685,090

Health

Care

Technology

0.2%

e,j

Multiplan

Corp.

,

Senior

Note

,

144A,

PIK,

6

%

,

10/15/27

.........

United

States

185,000,000

123,302,500

Hotel

&

Resort

REITs

0.0%

†

Service

Properties

Trust

,

Senior

Note

,

4.35

%

,

10/01/24

.........

United

States

17,389,000

16,700,802

Hotels,

Restaurants

&

Leisure

2.9%

e

Caesars

Entertainment,

Inc.

,

Senior

Note,

144A,

8.125%,

7/01/27

.....................

United

States

99,750,000

100,301,318

Senior

Note,

144A,

4.625%,

10/15/29

....................

United

States

115,000,000

97,547,014

Senior

Secured

Note,

144A,

6.25%,

7/01/25

...............

United

States

189,759,000

187,328,711

Senior

Secured

Note,

144A,

7%,

2/15/30

..................

United

States

52,000,000

50,654,328

e

Carnival

Corp.

,

Senior

Note,

144A,

7.625%,

3/01/26

.....................

United

States

150,000,000

146,020,365

Senior

Note,

144A,

5.75%,

3/01/27

......................

United

States

205,000,000

185,748,286

Senior

Note,

144A,

10.5%,

6/01/30

......................

United

States

65,000,000

66,998,080

e

Everi

Holdings,

Inc.

,

Senior

Note

,

144A,

5

%

,

7/15/29

...........

United

States

15,000,000

12,928,200

Expedia

Group,

Inc.

,

Senior

Bond,

3.8%,

2/15/28

............................

United

States

57,000,000

52,115,016

Senior

Note,

5%,

2/15/26

.............................

United

States

30,000,000

29,391,737

Senior

Note,

3.25%,

2/15/30

...........................

United

States

60,000,000

50,786,501

e

Senior

Note,

144A,

6.25%,

5/01/25

......................

United

States

54,596,000

54,712,500

e

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co.,

Inc.

,

Senior

Note,

144A,

6.75%,

1/15/30

......................

United

States

75,000,000

61,222,147

Senior

Secured

Note,

144A,

4.625%,

1/15/29

..............

United

States

150,000,000

127,289,250

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Hotels,

Restaurants

&

Leisure

(continued)

Marriott

International,

Inc.

,

Senior

Note,

5%,

10/15/27

............................

United

States

25,000,000

$

24,376,248

Senior

Note,

4.9%,

4/15/29

............................

United

States

20,000,000

19,079,730

McDonald's

Corp.

,

Senior

Bond

,

4.6

%

,

9/09/32

...............

United

States

50,000,000

47,071,325

e

Penn

Entertainment,

Inc.

,

Senior

Note,

144A,

5.625%,

1/15/27

.....................

United

States

20,000,000

18,829,800

g

Senior

Note,

144A,

4.125%,

7/01/29

.....................

United

States

60,000,000

49,104,000

e

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond,

144A,

5.5%,

3/01/25

.......................

United

States

440,000,000

433,030,620

Senior

Bond,

144A,

5.25%,

5/15/27

......................

United

States

150,000,000

139,677,810

e

Wynn

Resorts

Finance

LLC

/

Wynn

Resorts

Capital

Corp.

,

Senior

Note

,

144A,

7.125

%

,

2/15/31

...........................

United

States

30,000,000

28,513,017

1,982,726,003

Household

Durables

0.2%

KB

Home

,

Senior

Note

,

7.25

%

,

7/15/30

.....................

United

States

20,000,000

19,671,151

Lennar

Corp.

,

Senior

Note

,

4.5

%

,

4/30/24

...................

United

States

44,675,000

44,259,497

Shea

Homes

LP

/

Shea

Homes

Funding

Corp.

,

Senior

Note,

4.75%,

2/15/28

...........................

United

States

34,630,000

31,163,715

Senior

Note,

4.75%,

4/01/29

...........................

United

States

49,895,000

43,329,566

138,423,929

Household

Products

0.1%

e

Energizer

Holdings,

Inc.

,

Senior

Note,

144A,

6.5%,

12/31/27

......................

United

States

20,000,000

18,847,600

Senior

Note,

144A,

4.75%,

6/15/28

......................

United

States

24,000,000

20,758,868

39,606,468

Independent

Power

and

Renewable

Electricity

Producers

0.4%

e

Calpine

Corp.

,

Senior

Note,

144A,

5.125%,

3/15/28

.....................

United

States

142,000,000

126,604,814

Senior

Secured

Note,

144A,

4.5%,

2/15/28

................

United

States

100,000,000

90,226,640

e,h

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

7%

to

12/14/26,

FRN

thereafter

,

Perpetual

.................................

United

States

90,000,000

82,216,350

299,047,804

Insurance

0.2%

e

Five

Corners

Funding

Trust

III

,

Senior

Note

,

144A,

5.791

%

,

2/15/33

United

States

30,000,000

29,470,887

e

Northwestern

Mutual

Global

Funding

,

Secured

Note

,

144A,

4.35

%

,

9/15/27

...........................................

United

States

40,000,000

38,377,397

Prudential

Financial,

Inc.

,

Junior

Sub.

Bond

,

5.7%

to

9/14/28,

FRN

thereafter

,

9/15/48

...................................

United

States

65,000,000

59,701,011

127,549,295

Interactive

Media

&

Services

0.1%

Meta

Platforms,

Inc.

,

Senior

Note

,

3.85

%

,

8/15/32

.............

United

States

65,000,000

57,699,858

e

ZipRecruiter,

Inc.

,

Senior

Note

,

144A,

5

%

,

1/15/30

.............

United

States

30,000,000

23,586,927

81,286,785

IT

Services

0.1%

Twilio,

Inc.

,

Senior

Bond,

3.875%,

3/15/31

..........................

United

States

40,000,000

32,563,312

Senior

Note,

3.625%,

3/15/29

..........................

United

States

45,000,000

37,713,528

70,276,840

Machinery

0.1%

Parker-Hannifin

Corp.

,

Senior

Bond

,

3.25

%

,

6/14/29

...........

United

States

43,000,000

38,229,170

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

93

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Machinery

(continued)

e

TK

Elevator

US

Newco,

Inc.

,

Senior

Secured

Note

,

144A,

5.25

%

,

7/15/27

...........................................

Germany

35,000,000

$

32,118,217

70,347,387

Media

1.2%

e

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

4/15/28

......................

United

States

179,000,000

143,185,966

Senior

Note,

144A,

7.5%,

6/01/29

.......................

United

States

35,000,000

26,815,391

Senior

Secured

Note,

144A,

5.125%,

8/15/27

..............

United

States

90,000,000

80,007,074

CSC

Holdings

LLC

,

Senior

Bond

,

5.25

%

,

6/01/24

.............

United

States

45,026,000

42,902,493

DISH

DBS

Corp.

,

Senior

Note,

5.875%,

11/15/24

.........................

United

States

120,000,000

111,885,996

Senior

Note,

7.75%,

7/01/26

...........................

United

States

26,520,000

19,931,504

e

Senior

Secured

Note,

144A,

5.25%,

12/01/26

..............

United

States

10,000,000

8,517,258

e

Stagwell

Global

LLC

,

Senior

Note

,

144A,

5.625

%

,

8/15/29

.......

United

States

55,000,000

44,479,600

e

Univision

Communications,

Inc.

,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

..............

United

States

232,274,000

226,651,875

Senior

Secured

Note,

144A,

6.625%,

6/01/27

..............

United

States

60,000,000

55,943,502

Senior

Secured

Note,

144A,

8%,

8/15/28

..................

United

States

30,000,000

29,115,750

Senior

Secured

Note,

144A,

7.375%,

6/30/30

..............

United

States

20,000,000

18,302,534

807,738,943

Metals

&

Mining

1.2%

e

Alcoa

Nederland

Holding

BV

,

Senior

Note,

144A,

5.5%,

12/15/27

......................

United

States

104,742,000

99,638,331

g

Senior

Note,

144A,

4.125%,

3/31/29

.....................

United

States

101,547,000

89,956,831

ArcelorMittal

SA

,

Senior

Bond,

6.8%,

11/29/32

...........................

Luxembourg

40,000,000

39,766,790

Senior

Note,

6.55%,

11/29/27

..........................

Luxembourg

25,000,000

25,374,396

e

Cleveland-Cliffs,

Inc.

,

Senior

Bond,

144A,

4.875%,

3/01/31

.....................

United

States

25,000,000

21,322,957

Senior

Secured

Note,

144A,

6.75%,

3/15/26

...............

United

States

50,000,000

49,909,295

e

First

Quantum

Minerals

Ltd.

,

Senior

Note,

144A,

7.5%,

4/01/25

.......................

Zambia

85,000,000

84,945,609

Senior

Note,

144A,

8.625%,

6/01/31

.....................

Zambia

55,000,000

54,803,742

e

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Bond,

144A,

4.375%,

4/01/31

.....................

Australia

120,000,000

98,890,248

Senior

Bond,

144A,

6.125%,

4/15/32

.....................

Australia

22,500,000

20,492,918

Senior

Note,

144A,

5.875%,

4/15/30

.....................

Australia

50,000,000

45,781,132

Freeport-McMoRan,

Inc.

,

Senior

Bond,

5.25%,

9/01/29

...........................

United

States

61,402,000

58,084,837

Senior

Bond,

5.4%,

11/14/34

...........................

United

States

35,000,000

32,082,004

e

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5

%

,

9/01/30

......

Australia

100,000,000

79,124,709

e

Mineral

Resources

Ltd.

,

Senior

Note,

144A,

8%,

11/01/27

........................

Australia

20,000,000

19,647,900

Senior

Note,

144A,

8.5%,

5/01/30

.......................

Australia

35,000,000

34,377,576

854,199,275

Multi-Utilities

0.2%

Dominion

Energy,

Inc.

,

A,

Senior

Note,

4.35%,

8/15/32

.........................

United

States

30,000,000

26,862,599

C,

Senior

Note,

3.375%,

4/01/30

........................

United

States

30,000,000

25,827,207

NiSource,

Inc.

,

Senior

Bond

,

3.6

%

,

5/01/30

..................

United

States

33,750,000

29,424,603

Sempra

,

Senior

Bond

,

5.5

%

,

8/01/33

.......................

United

States

35,000,000

33,521,185

Southern

Co.

Gas

Capital

Corp.

,

Senior

Bond

,

5.15

%

,

9/15/32

...

United

States

40,000,000

37,692,286

153,327,880

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

2.4%

BP

Capital

Markets

America,

Inc.

,

Senior

Bond,

4.234%,

11/06/28

.........................

United

States

28,705,000

$

27,307,802

Senior

Bond,

3.633%,

4/06/30

..........................

United

States

46,500,000

41,897,618

Senior

Bond,

2.721%,

1/12/32

..........................

United

States

25,000,000

20,300,915

e

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note,

144A,

11%,

4/15/25

........................

United

States

255,000,000

259,448,623

Senior

Note,

144A,

8.125%,

1/15/27

.....................

United

States

95,000,000

91,127,458

Senior

Note,

144A,

9.75%,

7/15/28

......................

United

States

69,000,000

68,199,704

Senior

Secured

Note,

144A,

9.25%,

7/15/24

...............

United

States

111,402,000

111,871,560

Cheniere

Corpus

Christi

Holdings

LLC

,

Senior

Secured

Note,

5.125%,

6/30/27

...................

United

States

87,973,000

85,527,207

Senior

Secured

Note,

3.7%,

11/15/29

....................

United

States

107,245,000

95,200,477

e

Cheniere

Energy

Partners

LP

,

Senior

Bond

,

144A,

5.95

%

,

6/30/33

.

United

States

30,000,000

28,971,600

Chevron

Corp.

,

Senior

Bond

,

2.236

%

,

5/11/30

................

United

States

40,000,000

33,365,944

e

CITGO

Petroleum

Corp.

,

Senior

Secured

Note,

144A,

7%,

6/15/25

..................

United

States

33,224,000

32,760,615

Senior

Secured

Note,

144A,

6.375%,

6/15/26

..............

United

States

30,000,000

29,654,604

e

Civitas

Resources,

Inc.

,

Senior

Note

,

144A,

8.75

%

,

7/01/31

......

United

States

25,000,000

25,567,977

Energy

Transfer

LP

,

Senior

Bond

,

5.75

%

,

2/15/33

.............

United

States

30,000,000

28,870,599

e

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Note

,

144A,

6

%

,

4/15/30

...........................................

United

States

25,000,000

22,569,337

Kinder

Morgan,

Inc.

,

Senior

Bond

,

5.2

%

,

6/01/33

..............

United

States

87,000,000

80,522,529

e

Kinetik

Holdings

LP

,

Senior

Note

,

144A,

5.875

%

,

6/15/30

........

United

States

45,000,000

42,239,250

Occidental

Petroleum

Corp.

,

Senior

Bond,

6.625%,

9/01/30

..........................

United

States

80,000,000

81,147,200

Senior

Bond,

6.125%,

1/01/31

..........................

United

States

52,000,000

51,304,760

Senior

Note,

5.5%,

12/01/25

...........................

United

States

30,000,000

29,638,288

Senior

Note,

6.375%,

9/01/28

..........................

United

States

60,000,000

60,504,300

e

Venture

Global

LNG,

Inc.

,

Senior

Secured

Note

,

144A,

8.125

%

,

6/01/28

...........................................

United

States

55,000,000

54,498,010

Williams

Cos.,

Inc.

(The)

,

Senior

Bond,

3.5%,

11/15/30

...........................

United

States

130,000,000

112,172,522

Senior

Bond,

2.6%,

3/15/31

............................

United

States

61,000,000

48,615,141

Senior

Bond,

4.65%,

8/15/32

...........................

United

States

70,000,000

63,714,858

Senior

Bond,

5.65%,

3/15/33

...........................

United

States

30,000,000

29,005,214

1,656,004,112

Passenger

Airlines

1.8%

e

American

Airlines

Group,

Inc.

,

Senior

Note

,

144A,

3.75

%

,

3/01/25

.

United

States

64,000,000

60,696,979

e

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note,

144A,

5.5%,

4/20/26

................

United

States

197,083,334

192,659,345

Senior

Secured

Note,

144A,

5.75%,

4/20/29

...............

United

States

146,850,000

136,699,024

e

American

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

11.75

%

,

7/15/25

United

States

180,000,000

193,646,308

e

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note,

144A,

4.5%,

10/20/25

...............

United

States

58,971,622

57,301,813

Senior

Secured

Note,

144A,

4.75%,

10/20/28

..............

United

States

341,718,000

324,875,465

e

Mileage

Plus

Holdings

LLC

/

Mileage

Plus

Intellectual

Property

Assets

Ltd.

,

Senior

Secured

Note

,

144A,

6.5

%

,

6/20/27

.......

United

States

99,618,096

98,800,879

e

United

Airlines,

Inc.

,

Senior

Secured

Note,

144A,

4.375%,

4/15/26

..............

United

States

69,462,000

64,306,912

Senior

Secured

Note,

144A,

4.625%,

4/15/29

..............

United

States

116,643,000

100,380,115

1,229,366,840

Personal

Care

Products

0.2%

e

BellRing

Brands,

Inc.

,

Senior

Note

,

144A,

7

%

,

3/15/30

.........

United

States

30,000,000

29,579,529

Haleon

US

Capital

LLC

,

Senior

Note,

3.375%,

3/24/29

..........................

United

States

30,000,000

26,916,991

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

95

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Personal

Care

Products

(continued)

Haleon

US

Capital

LLC,

(continued)

Senior

Note,

3.625%,

3/24/32

..........................

United

States

65,043,000

$

55,813,776

112,310,296

Pharmaceuticals

2.6%

e

1375209

BC

Ltd.

,

Senior

Secured

Note

,

144A,

9

%

,

1/30/28

......

Canada

467,060,000

462,232,057

e

Bausch

Health

Cos.,

Inc.

,

Secured

Note,

144A,

14%,

10/15/30

.....................

United

States

164,340,000

97,831,602

Senior

Secured

Note,

144A,

5.5%,

11/01/25

...............

United

States

60,000,000

53,232,000

Senior

Secured

Note,

144A,

6.125%,

2/01/27

..............

United

States

165,000,000

102,885,205

Senior

Secured

Note,

144A,

5.75%,

8/15/27

...............

United

States

18,850,000

11,247,041

Senior

Secured

Note,

144A,

11%,

9/30/28

.................

United

States

752,000,000

512,074,400

Bristol-Myers

Squibb

Co.

,

Senior

Note

,

3.9

%

,

2/20/28

..........

United

States

30,000,000

28,370,025

e,k

Endo

Dac

/

Endo

Finance

LLC

/

Endo

Finco,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

10/15/24

..........................

United

States

47,500,000

33,328,499

e,k

Endo

Luxembourg

Finance

Co.

I

SARL

/

Endo

US,

Inc.

,

Senior

Secured

Note

,

144A,

6.125

%

,

4/01/29

....................

United

States

66,355,000

47,240,779

e,k

Par

Pharmaceutical,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

4/01/27

United

States

193,401,000

138,084,446

Royalty

Pharma

plc

,

Senior

Bond,

2.15%,

9/02/31

...........................

United

States

45,800,000

34,297,762

Senior

Note,

2.2%,

9/02/30

............................

United

States

35,000,000

27,190,708

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note,

7.125%,

1/31/25

..........................

Israel

27,220,000

27,342,136

Senior

Note,

6.75%,

3/01/28

...........................

Israel

26,000,000

25,553,359

Senior

Note,

7.875%,

9/15/29

..........................

Israel

25,000,000

25,357,850

Senior

Note,

8.125%,

9/15/31

..........................

Israel

30,000,000

31,074,060

Utah

Acquisition

Sub,

Inc.

,

Senior

Note

,

3.95

%

,

6/15/26

.........

United

States

130,500,000

122,293,260

Viatris,

Inc.

,

Senior

Note

,

2.7

%

,

6/22/30

.....................

United

States

25,000,000

19,558,364

1,799,193,553

Semiconductors

&

Semiconductor

Equipment

1.0%

Broadcom,

Inc.

,

Senior

Bond,

4.15%,

11/15/30

..........................

United

States

20,000,000

17,722,974

Senior

Bond,

4.3%,

11/15/32

...........................

United

States

100,000,000

87,275,710

e

Senior

Bond,

144A,

2.45%,

2/15/31

......................

United

States

80,000,000

62,564,524

e

Senior

Bond,

144A,

4.15%,

4/15/32

......................

United

States

75,000,000

65,130,153

e

Senior

Bond,

144A,

3.469%,

4/15/34

.....................

United

States

66,000,000

51,863,900

e

Senior

Note,

144A,

4%,

4/15/29

........................

United

States

48,307,000

43,618,515

e

Entegris

Escrow

Corp.

,

Senior

Secured

Note

,

144A,

4.75

%

,

4/15/29

United

States

60,000,000

53,994,798

Intel

Corp.

,

Senior

Bond,

5.2%,

2/10/33

............................

United

States

25,000,000

24,218,632

Senior

Note,

5.125%,

2/10/30

..........................

United

States

30,000,000

29,453,802

Micron

Technology,

Inc.

,

Senior

Bond,

5.327%,

2/06/29

..........................

United

States

25,000,000

24,108,980

Senior

Bond,

4.663%,

2/15/30

..........................

United

States

34,000,000

30,961,873

Senior

Bond,

5.875%,

2/09/33

..........................

United

States

40,000,000

38,242,115

Senior

Note,

6.75%,

11/01/29

..........................

United

States

55,000,000

55,917,942

NXP

BV

/

NXP

Funding

LLC

,

Senior

Note

,

5.55

%

,

12/01/28

......

China

20,000,000

19,585,613

NXP

BV

/

NXP

Funding

LLC

/

NXP

USA,

Inc.

,

Senior

Note

,

3.4

%

,

5/01/30

...........................................

China

31,200,000

26,695,566

e

Qorvo,

Inc.

,

Senior

Bond

,

144A,

3.375

%

,

4/01/31

.............

United

States

30,800,000

24,428,284

655,783,381

Software

0.9%

e

McAfee

Corp.

,

Senior

Note

,

144A,

7.375

%

,

2/15/30

............

United

States

60,000,000

50,301,774

Oracle

Corp.

,

Senior

Bond,

2.65%,

7/15/26

...........................

United

States

100,000,000

92,235,663

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Software

(continued)

Oracle

Corp.,

(continued)

Senior

Bond,

3.25%,

11/15/27

..........................

United

States

40,000,000

$

36,469,231

Senior

Bond,

2.95%,

4/01/30

...........................

United

States

44,000,000

37,043,217

Senior

Bond,

3.25%,

5/15/30

...........................

United

States

21,960,000

18,810,120

Senior

Bond,

2.875%,

3/25/31

..........................

United

States

101,000,000

82,544,295

Senior

Bond,

6.25%,

11/09/32

..........................

United

States

45,000,000

45,580,434

Senior

Note,

2.3%,

3/25/28

............................

United

States

50,000,000

43,343,417

Senior

Note,

6.15%,

11/09/29

..........................

United

States

20,000,000

20,313,069

Roper

Technologies,

Inc.

,

Senior

Bond,

2%,

6/30/30

.............................

United

States

30,303,000

23,985,488

Senior

Bond,

1.75%,

2/15/31

...........................

United

States

20,000,000

15,187,062

Workday,

Inc.

,

Senior

Bond

,

3.8

%

,

4/01/32

..................

United

States

200,000,000

171,553,392

637,367,162

Specialized

REITs

0.6%

American

Tower

Corp.

,

Senior

Bond,

3.375%,

10/15/26

.........................

United

States

20,000,000

18,633,570

Senior

Bond,

3.55%,

7/15/27

...........................

United

States

40,000,000

36,776,372

Senior

Bond,

2.9%,

1/15/30

............................

United

States

30,000,000

24,953,948

Senior

Bond,

5.65%,

3/15/33

...........................

United

States

60,000,000

57,742,951

Senior

Note,

1.6%,

4/15/26

............................

United

States

45,318,000

40,719,004

Senior

Note,

4.05%,

3/15/32

...........................

United

States

50,000,000

43,139,328

Crown

Castle,

Inc.

,

Senior

Bond,

3.3%,

7/01/30

............................

United

States

74,583,000

63,005,377

Senior

Bond,

2.1%,

4/01/31

............................

United

States

33,500,000

25,583,257

Senior

Bond,

2.5%,

7/15/31

............................

United

States

25,000,000

19,520,721

e

Iron

Mountain,

Inc.

,

Senior

Note

,

144A,

4.875

%

,

9/15/27

........

United

States

65,000,000

60,027,487

Weyerhaeuser

Co.

,

Senior

Bond

,

3.375

%

,

3/09/33

............

United

States

42,300,000

34,665,297

424,767,312

Specialty

Retail

0.8%

AutoNation,

Inc.

,

Senior

Bond,

4.75%,

6/01/30

...........................

United

States

40,959,000

36,927,209

Senior

Bond,

2.4%,

8/01/31

............................

United

States

44,451,000

32,808,613

Senior

Bond,

3.85%,

3/01/32

...........................

United

States

32,953,000

26,813,903

Senior

Note,

1.95%,

8/01/28

...........................

United

States

44,000,000

35,876,220

Bath

&

Body

Works,

Inc.

,

Senior

Bond

,

6.875

%

,

11/01/35

.......

United

States

40,000,000

35,769,332

Home

Depot,

Inc.

(The)

,

Senior

Note

,

4.5

%

,

9/15/32

...........

United

States

100,000,000

94,406,654

Lowe's

Cos.,

Inc.

,

Senior

Bond,

3.65%,

4/05/29

...........................

United

States

20,000,000

18,161,044

Senior

Bond,

4.5%,

4/15/30

............................

United

States

35,000,000

32,672,371

Senior

Bond,

3.75%,

4/01/32

...........................

United

States

88,000,000

76,234,693

Senior

Bond,

5%,

4/15/33

.............................

United

States

115,000,000

108,315,362

Senior

Bond,

5.15%,

7/01/33

...........................

United

States

35,000,000

33,220,718

e

Michaels

Cos.,

Inc.

(The)

,

Senior

Secured

Note

,

144A,

5.25

%

,

5/01/28

...........................................

United

States

60,000,000

47,987,100

579,193,219

Technology

Hardware,

Storage

&

Peripherals

0.5%

Apple,

Inc.

,

Senior

Bond

,

3.35

%

,

8/08/32

....................

United

States

60,000,000

52,959,290

Dell

International

LLC

/

EMC

Corp.

,

g

Senior

Bond,

5.75%,

2/01/33

...........................

United

States

40,000,000

38,892,143

Senior

Note,

5.3%,

10/01/29

...........................

United

States

55,000,000

53,413,539

HP,

Inc.

,

Senior

Bond,

5.5%,

1/15/33

............................

United

States

70,000,000

65,672,509

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

97

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Technology

Hardware,

Storage

&

Peripherals

(continued)

HP,

Inc.,

(continued)

Senior

Note,

4%,

4/15/29

.............................

United

States

160,309,000

$

146,559,428

357,496,909

Textiles,

Apparel

&

Luxury

Goods

0.0%

†

e

Hanesbrands,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/31

............

United

States

20,000,000

19,085,412

Tobacco

0.7%

BAT

Capital

Corp.

,

Senior

Bond,

2.726%,

3/25/31

..........................

United

Kingdom

25,000,000

19,310,930

Senior

Bond,

6.421%,

8/02/33

..........................

United

Kingdom

53,500,000

52,043,272

Senior

Note,

3.557%,

8/15/27

..........................

United

Kingdom

306,500,000

280,568,362

Senior

Note,

2.259%,

3/25/28

..........................

United

Kingdom

37,812,000

32,004,407

Philip

Morris

International,

Inc.

,

Senior

Bond,

5.75%,

11/17/32

..........................

United

States

41,000,000

40,040,216

Senior

Bond,

5.375%,

2/15/33

..........................

United

States

70,000,000

66,396,857

Senior

Bond,

5.625%,

9/07/33

..........................

United

States

25,000,000

24,050,326

514,414,370

Trading

Companies

&

Distributors

0.5%

United

Rentals

North

America,

Inc.

,

Senior

Bond,

4.875%,

1/15/28

..........................

United

States

155,000,000

144,936,326

Senior

Bond,

4%,

7/15/30

.............................

United

States

25,200,000

21,508,543

Senior

Bond,

3.875%,

2/15/31

..........................

United

States

70,657,000

58,865,746

Senior

Bond,

3.75%,

1/15/32

...........................

United

States

31,000,000

25,055,635

e

Senior

Secured

Note,

144A,

6%,

12/15/29

.................

United

States

65,000,000

63,362,721

e

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

6/15/25

...

United

States

25,000,000

25,085,525

338,814,496

Water

Utilities

0.1%

American

Water

Capital

Corp.

,

Senior

Bond

,

4.45

%

,

6/01/32

.....

United

States

40,336,000

37,308,130

Wireless

Telecommunication

Services

0.6%

Sprint

LLC

,

Senior

Note,

7.125%,

6/15/24

..........................

United

States

190,650,000

191,974,636

Senior

Note,

7.625%,

3/01/26

..........................

United

States

86,300,000

88,758,943

e

Sprint

Spectrum

Co.

LLC

/

Sprint

Spectrum

Co.

II

LLC

/

Sprint

Spectrum

Co.

III

LLC

,

Senior

Secured

Bond

,

144A,

5.152

%

,

3/20/28

...........................................

United

States

81,000,000

79,599,545

T-Mobile

USA,

Inc.

,

Senior

Bond,

5.2%,

1/15/33

............................

United

States

45,000,000

42,498,043

Senior

Note,

3.375%,

4/15/29

..........................

United

States

30,000,000

26,413,638

429,244,805

Total

Corporate

Bonds

(Cost

$35,550,373,530)

..................................

33,236,375,156

Units

a

l

Index-Linked

Notes

0.1%

Capital

Markets

0.1%

e,m

Goldman

Sachs

International

Bank

into

S&P

500

Index

,

Senior

Note

,

144A,

6.5

%

,

12/22/23

.................................

United

States

5,985

25,602,656

Total

Index-Linked

Notes

(Cost

$25,008,125)

....................................

25,602,656

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

n

Senior

Floating

Rate

Interests

0.5%

Chemicals

0.1%

f,o

SCIH

Salt

Holdings,

Inc.

,

First

Lien,

Incremental

Term

Loan,

B1

,

9.631

%

,

(

3-month

SOFR

+

4

%

),

3/16/27

..................

United

States

34,953,382

$

34,795,742

Health

Care

Equipment

&

Supplies

0.1%

f,o

Medline

Borrower

LP

,

Initial

Dollar

Term

Loan

,

8.681

%

,

(

1-month

SOFR

+

3.25

%

),

10/23/28

.............................

United

States

79,759,685

79,637,254

Software

0.3%

o

TIBCO

Software,

Inc.

,

First

Lien,

CME

Term

Loan,

A

,

9.99

%

,

(

3-month

SOFR

+

4.5

%

),

9/29/28

........................

United

States

248,597,961

239,172,369

Total

Senior

Floating

Rate

Interests

(Cost

$333,674,778)

.........................

353,605,365

U.S.

Government

and

Agency

Securities

13.7%

U.S.

Treasury

Bonds

,

3.375%,

8/15/42

.....................................

United

States

600,000,000

486,269,532

3.875%,

5/15/43

.....................................

United

States

250,000,000

217,382,812

3.625%,

5/15/53

.....................................

United

States

500,000,000

414,101,560

4.125%,

8/15/53

.....................................

United

States

750,000,000

680,976,563

U.S.

Treasury

Notes

,

4.375%,

10/31/24

....................................

United

States

500,000,000

494,462,890

4.25%,

10/15/25

.....................................

United

States

1,000,000,000

984,492,190

4.125%,

10/31/27

....................................

United

States

1,250,000,000

1,223,583,988

3.875%,

11/30/27

....................................

United

States

500,000,000

484,765,625

4%,

10/31/29

.......................................

United

States

1,000,000,000

965,664,060

2.875%,

5/15/32

.....................................

United

States

1,250,000,000

1,097,412,112

2.75%,

8/15/32

.....................................

United

States

2,250,000,000

1,948,710,938

3.875%,

8/15/33

.....................................

United

States

500,000,000

472,500,000

Total

U.S.

Government

and

Agency

Securities

(Cost

$10,097,268,212)

.............

9,470,322,270

Asset-Backed

Securities

0.2%

Passenger

Airlines

0.2%

United

Airlines

Pass-Through

Trust

,

2020-1,

A,

5.875%,

10/15/27

...........................

United

States

68,283,333

67,780,754

2023-1,

A,

5.8%,

1/15/36

..............................

United

States

50,000,000

48,793,380

116,574,134

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$118,061,413)

..............................

116,574,134

Mortgage-Backed

Securities

0.0%

†

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

0.0%

†

FNMA,

30

Year,

4%,

8/01/49

.............................

United

States

25,647,017

23,235,952

Total

Mortgage-Backed

Securities

(Cost

$27,169,809)

............................

23,235,952

Total

Long

Term

Investments

(Cost

$71,780,930,471)

............................

68,229,507,089

a

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

99

Short

Term

Investments

0.9%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

0.9%

c,p

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

....

United

States

645,794,493

$

645,794,493

Total

Money

Market

Funds

(Cost

$645,794,493)

.................................

645,794,493

Total

Short

Term

Investments

(Cost

$645,794,493

)

...............................

645,794,493

a

Total

Investments

(Cost

$72,426,724,964)

99.6%

................................

$68,875,301,582

Options

Written

(0.1)%

.......................................................

(87,227,000)

Other

Assets,

less

Liabilities

0.5%

.............................................

360,723,996

Net

Assets

100.0%

...........................................................

$69,148,798,578

a

a

a

Number

of

Contracts

Notional

Amount

#

a

a

a

q

Options

Written

(0.1)%

Calls

-

Exchange-Traded

Equity

Options

Bank

of

America

Corp.,

October

Strike

Price

$29.00,

Expires

10/20/23

..........................................

25,000

68,450,000

(650,000)

Bank

of

America

Corp.,

November

Strike

Price

$30.00,

Expires

11/17/23

..........................................

25,000

68,450,000

(675,000)

Bank

of

America

Corp.,

December

Strike

Price

$31.00,

Expires

12/15/23

..........................................

25,000

68,450,000

(550,000)

Bank

of

America

Corp.,

January

Strike

Price

$32.00,

Expires

1/19/24

25,000

68,450,000

(700,000)

Charles

Schwab

Corp.

(The),

December

Strike

Price

$65.00,

Expires

12/15/23

..........................................

10,000

54,900,000

(550,000)

Charles

Schwab

Corp.

(The),

November

Strike

Price

$67.50,

Expires

11/17/23

..........................................

10,000

54,900,000

(160,000)

Charles

Schwab

Corp.

(The),

October

Strike

Price

$75.00,

Expires

10/20/23

..........................................

10,000

54,900,000

(20,000)

Chevron

Corp.,

October

Strike

Price

$175.00,

Expires

10/20/23

...

10,000

168,620,000

(890,000)

Cisco

Systems,

Inc.,

October

Strike

Price

$55.00,

Expires

10/20/23

20,000

107,520,000

(600,000)

Citigroup,

Inc.,

December

Strike

Price

$47.00,

Expires

12/15/23

..

20,000

82,260,000

(580,000)

Comcast

Corp.,

November

Strike

Price

$47.50,

Expires

11/17/23

..

10,000

44,340,000

(450,000)

Comcast

Corp.,

December

Strike

Price

$50.00,

Expires

12/15/23

.

15,000

66,510,000

(480,000)

CVS

Health

Corp.,

November

Strike

Price

$85.00,

Expires

11/17/23

10,000

69,820,000

(90,000)

Fifth

Third

Bancorp,

November

Strike

Price

$29.00,

Expires

11/17/23

10,000

25,330,000

(150,000)

Fifth

Third

Bancorp,

November

Strike

Price

$30.00,

Expires

11/17/23

10,000

25,330,000

(100,000)

Goldman

Sachs

Group,

Inc.

(The),

November

Strike

Price

$350.00,

Expires

11/17/23

....................................

5,500

177,963,500

(1,925,000)

Honeywell

International,

Inc.,

December

Strike

Price

$200.00,

Expires

12/15/23

....................................

13,000

240,162,000

(2,262,000)

International

Business

Machines

Corp.,

December

Strike

Price

$160.00,

Expires

12/15/23

.............................

10,000

140,300,000

(330,000)

Johnson

&

Johnson,

November

Strike

Price

$175.00,

Expires

11/17/23

..........................................

25,000

389,375,000

(400,000)

JPMorgan

Chase

&

Co.,

December

Strike

Price

$160.00,

Expires

12/15/23

..........................................

10,000

145,020,000

(1,110,000)

JPMorgan

Chase

&

Co.,

January

Strike

Price

$165.00,

Expires

1/19/24

...........................................

10,000

145,020,000

(1,070,000)

MetLife,

Inc.,

October

Strike

Price

$67.50,

Expires

10/20/23

.....

10,000

62,910,000

(150,000)

MetLife,

Inc.,

November

Strike

Price

$67.50,

Expires

11/17/23

....

15,000

94,365,000

(1,050,000)

MetLife,

Inc.,

December

Strike

Price

$67.50,

Expires

12/15/23

....

10,000

62,910,000

(1,050,000)

Morgan

Stanley,

October

Strike

Price

$100.00,

Expires

10/20/23

..

20,000

163,340,000

(80,000)

NextEra

Energy,

Inc.,

November

Strike

Price

$70.00,

Expires

11/17/23

..........................................

20,000

114,580,000

(200,000)

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

q

Options

Written

(continued)

Calls

-

Exchange-Traded

(continued)

Equity

Options

(continued)

PepsiCo,

Inc.,

November

Strike

Price

$190.00,

Expires

11/17/23

..

10,000

169,440,000

$

(130,000)

Philip

Morris

International,

Inc.,

December

Strike

Price

$100.00,

Expires

12/15/23

....................................

10,000

92,580,000

(1,100,000)

PNC

Financial

Services

Group,

Inc.

(The),

November

Strike

Price

$130.00,

Expires

11/17/23

.............................

10,000

122,770,000

(2,000,000)

QUALCOMM,

Inc.,

October

Strike

Price

$130.00,

Expires

10/20/23

10,000

111,060,000

(50,000)

Target

Corp.,

October

Strike

Price

$145.00,

Expires

10/20/23

....

10,000

110,570,000

(20,000)

Texas

Instruments,

Inc.,

November

Strike

Price

$185.00,

Expires

11/17/23

..........................................

10,000

159,010,000

(260,000)

Truist

Financial

Corp.,

December

Strike

Price

$32.50,

Expires

12/15/23

..........................................

20,000

57,220,000

(1,200,000)

US

Bancorp,

December

Strike

Price

$37.50,

Expires

12/15/23

....

10,000

33,060,000

(600,000)

US

Bancorp,

October

Strike

Price

$40.00,

Expires

10/20/23

.....

10,000

33,060,000

(50,000)

(21,682,000)

Puts

-

Exchange-Traded

Equity

Options

Amazon.com,

Inc.,

December

Strike

Price

$100.00,

Expires

12/15/23

10,000

127,120,000

(930,000)

American

Express

Co.,

November

Strike

Price

$150.00,

Expires

11/17/23

..........................................

10,000

149,190,000

(5,850,000)

Analog

Devices,

Inc.,

November

Strike

Price

$160.00,

Expires

11/17/23

..........................................

10,000

175,090,000

(1,660,000)

Coca-Cola

Co.

(The),

December

Strike

Price

$52.50,

Expires

12/15/23

..........................................

20,000

111,960,000

(1,180,000)

Coca-Cola

Co.

(The),

November

Strike

Price

$57.50,

Expires

11/17/23

..........................................

10,000

55,980,000

(1,960,000)

CVS

Health

Corp.,

November

Strike

Price

$70.00,

Expires

11/17/23

10,000

69,820,000

(2,910,000)

Duke

Energy

Corp.,

November

Strike

Price

$85.00,

Expires

11/17/23

10,000

88,260,000

(1,700,000)

Exxon

Mobil

Corp.,

October

Strike

Price

$105.00,

Expires

10/20/23

20,000

235,160,000

(320,000)

Exxon

Mobil

Corp.,

November

Strike

Price

$105.00,

Expires

11/17/23

..........................................

15,000

176,370,000

(1,170,000)

Home

Depot,

Inc.

(The),

November

Strike

Price

$305.00,

Expires

11/17/23

..........................................

10,000

302,160,000

(10,350,000)

Honeywell

International,

Inc.,

December

Strike

Price

$170.00,

Expires

12/15/23

....................................

10,000

184,740,000

(2,200,000)

International

Business

Machines

Corp.,

December

Strike

Price

$135.00,

Expires

12/15/23

.............................

10,000

140,300,000

(3,300,000)

Johnson

&

Johnson,

October

Strike

Price

$150.00,

Expires

10/20/23

10,000

155,750,000

(970,000)

Johnson

&

Johnson,

November

Strike

Price

$150.00,

Expires

11/17/23

..........................................

10,000

155,750,000

(1,910,000)

Johnson

Controls

International

plc,

October

Strike

Price

$57.50,

Expires

10/20/23

....................................

5,000

26,605,000

(2,175,000)

JPMorgan

Chase

&

Co.,

November

Strike

Price

$135.00,

Expires

11/17/23

..........................................

10,000

145,020,000

(1,900,000)

Microchip

Technology,

Inc.,

November

Strike

Price

$70.00,

Expires

11/17/23

..........................................

10,000

78,050,000

(1,100,000)

Microchip

Technology,

Inc.,

October

Strike

Price

$72.50,

Expires

10/20/23

..........................................

10,000

78,050,000

(500,000)

Microsoft

Corp.,

October

Strike

Price

$290.00,

Expires

10/20/23

..

10,000

315,750,000

(970,000)

NextEra

Energy,

Inc.,

December

Strike

Price

$50.00,

Expires

12/15/23

..........................................

20,000

114,580,000

(1,400,000)

Oracle

Corp.,

December

Strike

Price

$95.00,

Expires

12/15/23

...

20,000

211,840,000

(3,440,000)

Palo

Alto

Networks,

Inc.,

December

Strike

Price

$180.00,

Expires

12/15/23

..........................................

20,000

468,880,000

(2,580,000)

PepsiCo,

Inc.,

November

Strike

Price

$170.00,

Expires

11/17/23

..

10,000

169,440,000

(4,250,000)

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

101

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

q

Options

Written

(continued)

Puts

-

Exchange-Traded

(continued)

Equity

Options

(continued)

Philip

Morris

International,

Inc.,

December

Strike

Price

$82.50,

Expires

12/15/23

....................................

10,000

92,580,000

$

(700,000)

QUALCOMM,

Inc.,

October

Strike

Price

$100.00,

Expires

10/20/23

10,000

111,060,000

(350,000)

Texas

Instruments,

Inc.,

December

Strike

Price

$140.00,

Expires

12/15/23

..........................................

10,000

159,010,000

(1,870,000)

Union

Pacific

Corp.,

October

Strike

Price

$205.00,

Expires

10/20/23

10,000

203,630,000

(5,100,000)

United

Parcel

Service,

Inc.,

October

Strike

Price

$160.00,

Expires

10/20/23

..........................................

5,000

77,935,000

(2,800,000)

(65,545,000)

Total

Options

Written

(Premiums

received

$98,516,643)

..........................

$

(87,227,000)

#

Notional

amount

is

the

number

of

contracts

multiplied

by

contract

size,

and

may

be

multiplied

by

the

underlying

price.

May

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

year

end.

b

Non-income

producing.

c

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

d

See

Note

1(f)

regarding

equity-linked

securities.

e

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

September

30,

2023,

the

aggregate

value

of

these

securities

was

$28,131,840,048,

representing

40.7%

of

net

assets.

f

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

g

A

portion

or

all

of

the

security

is

on

loan

at

September

30,

2023.

See

Note

1(g).

h

Perpetual

security

with

no

stated

maturity

date.

i

The

coupon

rate

shown

represents

the

rate

at

period

end.

j

Income

may

be

received

in

additional

securities

and/or

cash.

k

See

Note

7

regarding

credit

risk

and

defaulted

securities.

l

See

Note

1(e)

regarding

index-linked

notes.

m

Security

pays

variable

interest

based

on

the

distributions

of

the

strategy

index

and

proceeds

earned

from

related

equity

derivatives.

The

coupon

rate

shown

represents

the

combined

rate

at

period

end.

Cash

payment

at

maturity

or

upon

early

redemption

is

based

on

the

performance

of

the

strategy

index.

n

See

Note

1(h)

regarding

senior

floating

rate

interests.

o

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

p

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

q

See

Note

1(d)

regarding

written

options.

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

At

September

30,

2023,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1

(

d

). 

See

Note

9

regarding

derivative

financial

instruments.

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

U.S.

Treasury

10

Year

Notes

....................

Long

54,000

$

5,835,375,000

12/19/23

$

(120,952,289)

U.S.

Treasury

Ultra

Bonds

......................

Long

5,250

623,109,375

12/19/23

(44,465,285)

Total

Futures

Contracts

......................................................................

$(165,417,574)

*

As

of

period

end.

See

Abbreviations

on

page

154

.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

103

1

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.03

$5.89

$6.09

$6.07

$5.86

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.12

0.08

0.05

0.10

0.14

Net

realized

and

unrealized

gains

(losses)

...........

(0.14)

(0.81)

(0.12)

0.08

0.25

Total

from

investment

operations

....................

(0.02)

(0.73)

(0.07)

0.18

0.39

Less

distributions

from:

Net

investment

income

..........................

(0.15)

(0.13)

(0.13)

(0.16)

(0.18)

Net

asset

value,

end

of

year

.......................

$4.86

$5.03

$5.89

$6.09

$6.07

Total

return

c

...................................

(0.49)%

(12.50)%

(1.15)%

3.01%

6.70%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.81%

0.87%

0.87%

0.89%

0.89%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.80%

0.86%

d

0.87%

d,e

0.88%

d

0.88%

d

Net

investment

income

...........................

2.45%

1.44%

0.79%

1.58%

2.36%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$607,527

$687,607

$1,020,574

$1,097,545

$336,646

Portfolio

turnover

rate

............................

2.81%

53.63%

89.16%

65.54%

41.34%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

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

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.03

$5.90

$6.09

$6.07

$5.85

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.13

0.09

0.05

0.10

0.15

Net

realized

and

unrealized

gains

(losses)

...........

(0.14)

(0.82)

(0.10)

0.09

0.25

Total

from

investment

operations

....................

(0.01)

(0.73)

(0.05)

0.19

0.40

Less

distributions

from:

Net

investment

income

..........................

(0.16)

(0.14)

(0.14)

(0.17)

(0.18)

Net

asset

value,

end

of

year

.......................

$4.86

$5.03

$5.90

$6.09

$6.07

Total

return

c

...................................

(0.38)%

(12.55)%

(0.89)%

3.09%

6.94%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.70%

0.76%

0.77%

0.78%

0.79%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.69%

0.76%

d,e

0.76%

d

0.77%

d

0.78%

d

Net

investment

income

...........................

2.55%

1.56%

0.90%

1.69%

2.46%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,362,598

$1,592,268

$2,104,978

$2,661,888

$2,885,194

Portfolio

turnover

rate

............................

2.81%

53.63%

89.16%

65.54%

41.34%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

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.

Annual

Report

105

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.00

$5.85

$6.04

$6.03

$5.81

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.10

0.06

0.02

0.07

0.12

Net

realized

and

unrealized

gains

(losses)

...........

(0.15)

(0.80)

(0.10)

0.08

0.25

Total

from

investment

operations

....................

(0.05)

(0.74)

(0.08)

0.15

0.37

Less

distributions

from:

Net

investment

income

..........................

(0.13)

(0.11)

(0.11)

(0.14)

(0.15)

Net

asset

value,

end

of

year

.......................

$4.82

$5.00

$5.85

$6.04

$6.03

Total

return

c

...................................

(1.12)%

(12.77)%

(1.41)%

2.43%

6.45%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.21%

1.27%

1.27%

1.29%

1.29%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.20%

1.26%

d

1.27%

d,e

1.28%

d

1.28%

d

Net

investment

income

...........................

2.04%

1.04%

0.39%

1.18%

1.96%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$60,693

$116,145

$196,643

$354,483

$389,021

Portfolio

turnover

rate

............................

2.81%

53.63%

89.16%

65.54%

41.34%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

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

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.03

$5.89

$6.09

$6.07

$5.85

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.11

0.07

0.03

0.08

0.13

Net

realized

and

unrealized

gains

(losses)

...........

(0.14)

(0.81)

(0.11)

0.08

0.25

Total

from

investment

operations

....................

(0.03)

(0.74)

(0.08)

0.16

0.38

Less

distributions

from:

Net

investment

income

..........................

(0.14)

(0.12)

(0.12)

(0.14)

(0.16)

Net

asset

value,

end

of

year

.......................

$4.86

$5.03

$5.89

$6.09

$6.07

Total

return

....................................

(0.74)%

(12.72)%

(1.41)%

2.73%

6.58%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.05%

1.12%

1.11%

1.13%

1.14%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.05%

c

1.11%

d

1.11%

c,d

1.12%

d

1.13%

d

Net

investment

income

...........................

2.20%

1.20%

0.55%

1.34%

2.11%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$14,078

$15,476

$19,513

$27,746

$32,906

Portfolio

turnover

rate

............................

2.81%

53.63%

89.16%

65.54%

41.34%

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

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

d

Benefit

of

expense

reduction

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.

Annual

Report

107

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.06

$5.92

$6.12

$6.10

$5.87

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.14

0.10

0.07

0.12

0.16

Net

realized

and

unrealized

gains

(losses)

...........

(0.15)

(0.81)

(0.12)

0.08

0.27

Total

from

investment

operations

....................

(0.01)

(0.71)

(0.05)

0.20

0.43

Less

distributions

from:

Net

investment

income

..........................

(0.17)

(0.15)

(0.15)

(0.18)

(0.20)

Net

asset

value,

end

of

year

.......................

$4.88

$5.06

$5.92

$6.12

$6.10

Total

return

....................................

(0.34)%

(12.11)%

(0.80)%

3.34%

7.39%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.46%

0.50%

0.53%

0.54%

0.51%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.45%

0.50%

c,d

0.51%

c

0.52%

c

0.50%

c

Net

investment

income

...........................

2.80%

1.81%

1.15%

1.96%

2.74%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$204,317

$202,611

$304,650

$361,791

$573,957

Portfolio

turnover

rate

............................

2.81%

53.63%

89.16%

65.54%

41.34%

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

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

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$5.05

$5.92

$6.11

$6.10

$5.87

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.14

0.09

0.06

0.11

0.16

Net

realized

and

unrealized

gains

(losses)

...........

(0.15)

(0.81)

(0.10)

0.07

0.26

Total

from

investment

operations

....................

(0.01)

(0.72)

(0.04)

0.18

0.42

Less

distributions

from:

Net

investment

income

..........................

(0.16)

(0.15)

(0.15)

(0.17)

(0.19)

Net

asset

value,

end

of

year

.......................

$4.88

$5.05

$5.92

$6.11

$6.10

Total

return

....................................

(0.24)%

(12.39)%

(0.74)%

3.23%

7.08%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.55%

0.62%

0.62%

0.64%

0.64%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.55%

c

0.61%

d

0.62%

c,d

0.63%

d

0.63%

d

Net

investment

income

...........................

2.70%

1.67%

1.04%

1.84%

2.61%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$262,569

$300,303

$692,010

$743,012

$946,318

Portfolio

turnover

rate

............................

2.81%

53.63%

89.16%

65.54%

41.34%

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

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%

.

Franklin

Custodian

Funds

Schedule

of

Investments,

September

30,

2023

Franklin

U.S.

Government

Securities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

109

a

a

Principal

Amount

a

Value

a

a

a

a

a

U.S.

Government

and

Agency

Securities

0.6%

U.S.

Treasury

Bonds,

4.75%,

2/15/37

....................................

$

14,500,000

$

14,763,945

Total

U.S.

Government

and

Agency

Securities

(Cost

$18,307,804)

.................

14,763,945

Mortgage-Backed

Securities

96.5%

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

96.5%

GNMA

I,

30

Year,

4.5%,

4/15/40

........................................

3,364,078

3,217,868

GNMA

I,

30

Year,

5%,

9/15/40

..........................................

118,740,568

115,216,808

GNMA

I,

30

Year,

5.5%,

2/15/40

........................................

52,224,227

52,106,361

GNMA

I,

30

Year,

6%,

12/15/39

.........................................

48,247,453

49,475,218

GNMA

I,

30

Year,

6.5%,

8/15/37

........................................

11,626,757

11,712,151

GNMA

I,

30

Year,

7%,

9/15/32

..........................................

7,209,548

7,450,507

GNMA

I,

30

Year,

7.5%,

7/15/26

-

8/15/33

.................................

639,034

654,459

GNMA

I,

30

Year,

8%,

10/15/29

.........................................

977

995

GNMA

I,

30

Year,

8.5%,

11/15/24

........................................

37

37

GNMA

I,

Single-family,

30

Year,

3.5%,

4/15/43

-

5/15/43

......................

10,962,826

9,859,593

GNMA

I,

Single-family,

30

Year,

4%,

10/15/40

-

8/15/46

.......................

32,684,932

30,162,120

GNMA

I,

Single-family,

30

Year,

4.5%,

2/15/39

-

6/15/41

......................

61,928,884

58,974,060

GNMA

I,

Single-family,

30

Year,

5%,

2/15/35

...............................

10,908

10,420

GNMA

I,

Single-family,

30

Year,

5.5%,

10/15/48

.............................

554,148

539,932

GNMA

I,

Single-family,

30

Year,

7.25%,

12/15/25

............................

19,668

19,571

GNMA

I,

Single-family,

30

Year,

7.5%,

1/15/24

-

7/15/31

......................

802,055

805,164

GNMA

I,

Single-family,

30

Year,

8%,

2/15/24

-

9/15/30

........................

270,724

271,136

GNMA

I,

Single-family,

30

Year,

8.5%,

4/15/24

-

5/15/25

......................

2,743

2,739

GNMA

I,

Single-family,

30

Year,

10%,

2/15/25

..............................

1,631

1,631

GNMA

II,

30

Year,

4.5%,

5/20/34

-

6/20/41

.................................

2,787,545

2,646,792

GNMA

II,

30

Year,

6%,

3/20/34

-

9/20/34

..................................

872,087

863,648

GNMA

II,

30

Year,

6

%,

7/20/39

.........................................

21,521,172

22,192,193

GNMA

II,

30

Year,

6.5%,

9/20/31

-

9/20/32

.................................

879,396

892,995

GNMA

II,

30

Year,

7%,

7/20/32

.........................................

251,121

259,383

GNMA

II,

30

Year,

7.5%,

10/20/24

.......................................

843

841

GNMA

II,

30

Year,

8%,

12/20/28

........................................

27,481

27,622

GNMA

II,

Single-family,

30

Year,

2%,

8/20/51

...............................

161,759,722

128,227,577

GNMA

II,

Single-family,

30

Year,

2.5%,

11/20/50

............................

14,735,186

11,728,249

GNMA

II,

Single-family,

30

Year,

2.5%,

7/20/51

.............................

70,756,950

57,930,660

GNMA

II,

Single-family,

30

Year,

2.5%,

8/20/51

.............................

210,073,356

171,987,615

GNMA

II,

Single-family,

30

Year,

2.5%,

9/20/51

.............................

85,119,674

69,683,591

GNMA

II,

Single-family,

30

Year,

2.5%,

10/20/51

............................

83,156,615

68,074,641

GNMA

II,

Single-family,

30

Year,

2.5%,

12/20/51

............................

84,917,308

69,517,042

GNMA

II,

Single-family,

30

Year,

2.5%,

1/20/52

.............................

127,626,054

104,465,008

GNMA

II,

Single-family,

30

Year,

3%,

10/20/44

..............................

18,472,801

15,931,538

GNMA

II,

Single-family,

30

Year,

3%,

12/20/44

..............................

9,148,164

7,910,950

GNMA

II,

Single-family,

30

Year,

3%,

5/20/45

...............................

13,393,961

11,552,413

GNMA

II,

Single-family,

30

Year,

3%,

4/20/46

...............................

17,911,197

15,329,098

GNMA

II,

Single-family,

30

Year,

3%,

9/20/47

...............................

14,433,455

12,403,820

GNMA

II,

Single-family,

30

Year,

3%,

10/20/47

..............................

23,179,108

19,928,177

GNMA

II,

Single-family,

30

Year,

3%,

6/20/50

...............................

10,485,357

9,105,986

GNMA

II,

Single-family,

30

Year,

3%,

7/20/51

...............................

88,216,247

74,888,230

GNMA

II,

Single-family,

30

Year,

3%,

8/20/51

...............................

165,335,215

140,676,318

GNMA

II,

Single-family,

30

Year,

3%,

9/20/51

...............................

27,215,920

23,159,080

GNMA

II,

Single-family,

30

Year,

3%,

10/20/51

..............................

118,109,398

100,479,416

GNMA

II,

Single-family,

30

Year

,

3%,

2/20/45

-

10/20/50

......................

68,916,561

59,510,145

GNMA

II,

Single-family,

30

Year,

3.5%,

7/20/42

.............................

28,824,475

25,804,564

GNMA

II,

Single-family,

30

Year,

3.5%,

9/20/42

.............................

36,176,121

32,436,228

GNMA

II,

Single-family,

30

Year,

3.5%,

5/20/43

.............................

10,792,012

9,692,252

GNMA

II,

Single-family,

30

Year,

3.5%,

6/20/43

.............................

12,481,274

11,185,746

GNMA

II,

Single-family,

30

Year,

3.5%,

9/20/47

.............................

128,947,405

114,505,395

GNMA

II,

Single-family,

30

Year,

3.5%,

11/20/47

............................

122,674,581

108,861,383

GNMA

II,

Single-family,

30

Year,

3.5%,

10/20/40

-

1/20/49

.....................

46,960,910

41,998,414

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

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%,

11/20/51

............................

$

23,112,047

$

20,301,198

GNMA

II,

Single-family,

30

Year,

3.5%,

2/20/52

.............................

65,848,721

57,733,817

GNMA

II,

Single-family,

30

Year,

4%,

11/20/40

..............................

9,506,202

8,808,995

GNMA

II,

Single-family,

30

Year,

4%,

9/20/41

...............................

9,456,934

8,763,296

GNMA

II,

Single-family,

30

Year,

4%,

10/20/41

..............................

11,686,364

10,827,268

GNMA

II,

Single-family,

30

Year,

4%,

11/20/41

..............................

11,018,803

10,206,847

GNMA

II,

Single-family,

30

Year,

4%,

5/20/47

...............................

30,967,304

28,420,501

GNMA

II,

Single-family,

30

Year,

4%,

6/20/47

...............................

23,746,823

21,792,407

GNMA

II,

Single-family,

30

Year,

4%,

7/20/47

...............................

15,198,628

13,924,912

GNMA

II,

Single-family,

30

Year,

4%,

5/20/40

-

12/20/49

......................

44,743,761

41,290,883

GNMA

II,

Single-family,

30

Year,

4%,

6/20/52

...............................

95,580,436

86,190,020

GNMA

II,

Single-family,

30

Year,

4.5%,

5/20/41

.............................

8,639,070

8,203,398

GNMA

II,

Single-family,

30

Year,

4.5%,

6/20/41

.............................

10,650,866

10,113,943

GNMA

II,

Single-family,

30

Year,

4.5%,

7/20/41

.............................

11,873,283

11,274,233

GNMA

II,

Single-family,

30

Year,

4.5%,

9/20/41

.............................

17,091,932

16,229,913

GNMA

II,

Single-family,

30

Year

,

4.5%,

10/20/41

............................

12,189,968

11,575,078

GNMA

II,

Single-family,

30

Year,

4.5%,

5/20/33

-

2/20/44

......................

27,034,256

25,688,865

GNMA

II,

Single-family,

30

Year,

5%,

7/20/33

-

9/20/41

.......................

31,492,832

30,909,903

GNMA

II,

Single-family,

30

Year,

5%,

7/20/53

...............................

26,196,846

24,846,470

GNMA

II,

Single-family,

30

Year,

5.5%,

6/20/34

-

2/20/50

......................

34,069,585

34,009,101

GNMA

II,

Single-family,

30

Year,

5.5%,

7/20/53

.............................

25,635,217

24,890,937

GNMA

II,

Single-family,

30

Year,

6%,

6/20/34

...............................

476,391

477,055

GNMA

II,

Single-family,

30

Year,

6%,

7/20/53

...............................

25,277,361

25,072,456

GNMA

II,

Single-family,

30

Year,

6.5%,

6/20/24

-

1/20/39

......................

6,855,359

7,084,010

GNMA

II,

Single-family,

30

Year,

7%,

2/20/28

-

7/20/33

.......................

1,758,340

1,790,676

GNMA

II,

Single-family,

30

Year,

7.5%,

10/20/25

-

4/20/32

.....................

206,710

210,073

GNMA

II,

Single-family,

30

Year,

8%,

12/20/24

-

6/20/30

......................

101,026

102,694

GNMA

II,

Single-family,

30

Year,

8.5%,

1/20/25

-

6/20/25

......................

46

46

GNMA

II,

Single-family,

30

Year,

9.5%,

1/20/25

.............................

246

246

2,425,077,021

Total

Mortgage-Backed

Securities

(Cost

$2,856,128,379)

.........................

2,425,077,021

Total

Long

Term

Investments

(Cost

$2,874,436,183)

.............................

2,439,840,966

a

a

a

a

a

Short

Term

Investments

2.7%

Shares

a

Money

Market

Funds

2.7%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

..................

67,238,754

67,238,754

Total

Money

Market

Funds

(Cost

$67,238,754)

..................................

67,238,754

Total

Short

Term

Investments

(Cost

$67,238,754

)

................................

67,238,754

a

Total

Investments

(Cost

$2,941,674,937)

99.8%

..................................

$2,507,079,720

Other

Assets,

less

Liabilities

0.2%

.............................................

4,701,846

Net

Assets

100.0%

...........................................................

$2,511,781,566

See

Abbreviations

on

page

154

.

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

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

111

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.26

$20.20

$19.76

$22.53

$18.66

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.49

0.46

0.43

0.51

0.53

Net

realized

and

unrealized

gains

(losses)

...........

(1.33)

0.67

1.94

(2.43)

4.41

Total

from

investment

operations

....................

(0.84)

1.13

2.37

(1.92)

4.94

Less

distributions

from:

Net

investment

income

..........................

(0.47)

(0.47)

(0.52)

(0.50)

(0.49)

Net

realized

gains

.............................

(0.31)

(0.60)

(1.41)

(0.35)

(0.58)

Total

distributions

...............................

(0.78)

(1.07)

(1.93)

(0.85)

(1.07)

Net

asset

value,

end

of

year

.......................

$18.64

$20.26

$20.20

$19.76

$22.53

Total

return

c

...................................

(4.55)%

5.56%

12.29%

(8.68)%

27.43%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.81%

0.82%

0.82%

0.83%

0.83%

Net

investment

income

...........................

2.34%

2.08%

2.10%

2.46%

2.51%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,116,740

$1,200,671

$982,201

$742,188

$521,782

Portfolio

turnover

rate

............................

4.43%

5.66%

5.18%

12.19%

7.90%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.27

$20.21

$19.77

$22.54

$18.66

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.50

0.47

0.45

0.52

0.53

Net

realized

and

unrealized

gains

(losses)

...........

(1.31)

0.68

1.94

(2.41)

4.44

Total

from

investment

operations

....................

(0.81)

1.15

2.39

(1.89)

4.97

Less

distributions

from:

Net

investment

income

..........................

(0.50)

(0.49)

(0.54)

(0.53)

(0.51)

Net

realized

gains

.............................

(0.31)

(0.60)

(1.41)

(0.35)

(0.58)

Total

distributions

...............................

(0.81)

(1.09)

(1.95)

(0.88)

(1.09)

Net

asset

value,

end

of

year

.......................

$18.65

$20.27

$20.21

$19.77

$22.54

Total

return

c

...................................

(4.45)%

5.67%

12.40%

(8.59)%

27.61%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.71%

0.72%

0.72%

0.73%

0.73%

Net

investment

income

...........................

2.42%

2.16%

2.20%

2.50%

2.61%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,752,653

$3,230,150

$3,321,370

$3,388,126

$4,176,487

Portfolio

turnover

rate

............................

4.43%

5.66%

5.18%

12.19%

7.90%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

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.

Annual

Report

113

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.14

$20.09

$19.65

$22.42

$18.57

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.39

0.36

0.34

0.41

0.42

Net

realized

and

unrealized

gains

(losses)

...........

(1.30)

0.67

1.95

(2.41)

4.43

Total

from

investment

operations

....................

(0.91)

1.03

2.29

(2.00)

4.85

Less

distributions

from:

Net

investment

income

..........................

(0.39)

(0.38)

(0.44)

(0.42)

(0.42)

Net

realized

gains

.............................

(0.31)

(0.60)

(1.41)

(0.35)

(0.58)

Total

distributions

...............................

(0.70)

(0.98)

(1.85)

(0.77)

(1.00)

Net

asset

value,

end

of

year

.......................

$18.53

$20.14

$20.09

$19.65

$22.42

Total

return

c

...................................

(4.91)%

5.11%

11.91%

(9.10)%

26.96%

Ratios

to

average

net

assets

Expenses

d,e

....................................

1.21%

1.22%

1.22%

1.23%

1.23%

Net

investment

income

...........................

1.90%

1.66%

1.69%

1.98%

2.11%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$218,134

$302,959

$350,553

$537,808

$767,363

Portfolio

turnover

rate

............................

4.43%

5.66%

5.18%

12.19%

7.90%

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.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.17

$20.12

$19.68

$22.45

$18.59

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.43

0.40

0.38

0.44

0.45

Net

realized

and

unrealized

gains

(losses)

...........

(1.31)

0.67

1.94

(2.41)

4.44

Total

from

investment

operations

....................

(0.88)

1.07

2.32

(1.97)

4.89

Less

distributions

from:

Net

investment

income

..........................

(0.42)

(0.42)

(0.47)

(0.45)

(0.45)

Net

realized

gains

.............................

(0.31)

(0.60)

(1.41)

(0.35)

(0.58)

Total

distributions

...............................

(0.73)

(1.02)

(1.88)

(0.80)

(1.03)

Net

asset

value,

end

of

year

.......................

$18.56

$20.17

$20.12

$19.68

$22.45

Total

return

....................................

(4.76)%

5.26%

12.06%

(8.95)%

27.17%

Ratios

to

average

net

assets

Expenses

c,d

....................................

1.06%

1.07%

1.07%

1.08%

1.08%

Net

investment

income

...........................

2.08%

1.83%

1.85%

2.15%

2.26%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$89,085

$103,579

$83,441

$84,488

$103,376

Portfolio

turnover

rate

............................

4.43%

5.66%

5.18%

12.19%

7.90%

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

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.

Annual

Report

115

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.47

$20.40

$19.93

$22.73

$18.81

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.56

0.54

0.50

0.58

0.56

Net

realized

and

unrealized

gains

(losses)

...........

(1.34)

0.67

1.96

(2.46)

4.50

Total

from

investment

operations

....................

(0.78)

1.21

2.46

(1.88)

5.06

Less

distributions

from:

Net

investment

income

..........................

(0.54)

(0.54)

(0.58)

(0.57)

(0.56)

Net

realized

gains

.............................

(0.31)

(0.60)

(1.41)

(0.35)

(0.58)

Total

distributions

...............................

(0.85)

(1.14)

(1.99)

(0.92)

(1.14)

Net

asset

value,

end

of

year

.......................

$18.84

$20.47

$20.40

$19.93

$22.73

Total

return

....................................

(4.24)%

5.90%

12.71%

(8.44)%

27.89%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.52%

0.54%

0.58%

0.56%

0.53%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.49%

0.50%

0.50%

0.50%

0.50%

Net

investment

income

...........................

2.64%

2.41%

2.42%

2.75%

2.84%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$187,585

$223,710

$153,969

$144,079

$150,244

Portfolio

turnover

rate

............................

4.43%

5.66%

5.18%

12.19%

7.90%

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

a

Year

Ended

September

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.47

$20.40

$19.93

$22.73

$18.81

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.54

0.52

0.48

0.56

0.56

Net

realized

and

unrealized

gains

(losses)

...........

(1.33)

0.68

1.97

(2.46)

4.48

Total

from

investment

operations

....................

(0.79)

1.20

2.45

(1.90)

5.04

Less

distributions

from:

Net

investment

income

..........................

(0.53)

(0.53)

(0.57)

(0.55)

(0.54)

Net

realized

gains

.............................

(0.31)

(0.60)

(1.41)

(0.35)

(0.58)

Total

distributions

...............................

(0.84)

(1.13)

(1.98)

(0.90)

(1.12)

Net

asset

value,

end

of

year

.......................

$18.84

$20.47

$20.40

$19.93

$22.73

Total

return

....................................

(4.31)%

5.82%

12.62%

(8.51)%

27.78%

Ratios

to

average

net

assets

Expenses

c,d

....................................

0.56%

0.57%

0.57%

0.58%

0.58%

Net

investment

income

...........................

2.57%

2.32%

2.35%

2.66%

2.76%

Supplemental

data

Net

assets

,

end

of

year

(000’s)

.....................

$1,134,602

$1,383,667

$1,200,859

$1,179,002

$1,262,883

Portfolio

turnover

rate

............................

4.43%

5.66%

5.18%

12.19%

7.90%

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

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments,

September

30,

2023

Franklin

Utilities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

117

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

99.5%

Construction

&

Engineering

1.5%

MDU

Resources

Group,

Inc.

.............................

United

States

4,200,000

$

82,236,000

Electric

Utilities

57.5%

Alliant

Energy

Corp.

...................................

United

States

3,700,000

179,265,000

American

Electric

Power

Co.,

Inc.

.........................

United

States

2,100,000

157,962,000

Constellation

Energy

Corp.

..............................

United

States

500,000

54,540,000

Duke

Energy

Corp.

....................................

United

States

2,700,000

238,302,000

Edison

International

...................................

United

States

4,300,000

272,147,000

Entergy

Corp.

........................................

United

States

2,400,000

222,000,000

Evergy,

Inc.

..........................................

United

States

4,150,000

210,405,000

Eversource

Energy

....................................

United

States

1,800,000

104,670,000

Exelon

Corp.

.........................................

United

States

6,350,000

239,966,500

FirstEnergy

Corp.

.....................................

United

States

2,000,000

68,360,000

NextEra

Energy,

Inc.

...................................

United

States

9,500,000

544,255,000

OGE

Energy

Corp.

....................................

United

States

1,600,000

53,328,000

a

PG&E

Corp.

.........................................

United

States

11,200,000

180,656,000

Pinnacle

West

Capital

Corp.

.............................

United

States

950,000

69,996,000

PPL

Corp.

...........................................

United

States

7,000,000

164,920,000

Southern

Co.

(The)

....................................

United

States

4,400,000

284,768,000

Xcel

Energy,

Inc.

......................................

United

States

2,000,000

114,440,000

3,159,980,500

Gas

Utilities

0.8%

Spire,

Inc.

...........................................

United

States

800,000

45,264,000

Independent

Power

and

Renewable

Electricity

Producers

3.5%

Clearway

Energy,

Inc.

,

C

................................

United

States

900,000

19,044,000

Drax

Group

plc

.......................................

United

Kingdom

8,000,000

42,826,879

Vistra

Corp.

..........................................

United

States

3,994,269

132,529,844

194,400,723

Multi-Utilities

30.4%

Ameren

Corp.

........................................

United

States

1,900,000

142,177,000

CenterPoint

Energy,

Inc.

................................

United

States

6,500,000

174,525,000

CMS

Energy

Corp.

....................................

United

States

3,300,000

175,263,000

Consolidated

Edison,

Inc.

...............................

United

States

500,000

42,765,000

Dominion

Energy,

Inc.

..................................

United

States

4,000,000

178,680,000

DTE

Energy

Co.

......................................

United

States

1,500,000

148,920,000

E.ON

SE

............................................

Germany

9,000,000

106,429,043

National

Grid

plc

......................................

United

Kingdom

5,000,000

59,791,859

NiSource,

Inc.

........................................

United

States

6,200,000

153,016,000

Northwestern

Energy

Group,

Inc.

.........................

United

States

1,300,000

62,478,000

Public

Service

Enterprise

Group,

Inc.

......................

United

States

1,900,000

108,129,000

Sempra

.............................................

United

States

3,600,000

244,908,000

WEC

Energy

Group,

Inc.

................................

United

States

900,000

72,495,000

1,669,576,902

Oil,

Gas

&

Consumable

Fuels

4.4%

Cheniere

Energy,

Inc.

..................................

United

States

700,000

116,172,000

DT

Midstream,

Inc.

....................................

United

States

1,500,000

79,380,000

Williams

Cos.,

Inc.

(The)

................................

United

States

1,400,000

47,166,000

242,718,000

Water

Utilities

1.4%

Essential

Utilities,

Inc.

..................................

United

States

1,500,000

51,495,000

Franklin

Custodian

Funds

Schedule

of

Investments

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

118

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Water

Utilities

(continued)

United

Utilities

Group

plc

................................

United

Kingdom

2,000,000

$

23,108,129

74,603,129

Total

Common

Stocks

(Cost

$

3,024,581,873

)

....................................

5,468,779,254

Short

Term

Investments

0.4%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

0.4%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.019

%

....

United

States

20,399,531

20,399,531

Total

Money

Market

Funds

(Cost

$

20,399,531

)

..................................

20,399,531

Total

Short

Term

Investments

(Cost

$

20,399,531

)

................................

20,399,531

a

Total

Investments

(Cost

$

3,044,981,404

)

99

.9

%

..................................

$5,489,178,785

Other

Assets,

less

Liabilities

0

.1

%

.............................................

9,619,613

Net

Assets

100.0%

...........................................................

$5,498,798,398

a

a

a

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

September

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

119

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$10,875,811,585

$61,529,690

$4,896,133,073

Cost

-

Non-controlled

affiliates

(Note

3

f

and

10

)

.................

93,924,605

448,270

86,621,522

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$458,850,

$—

and

$—,

respectively)

.................................

$19,533,719,771

$77,708,925

$15,525,444,726

Value

-

Non-controlled

affiliates

(Note

3

f

and

10

)

................

93,924,605

448,270

82,684,911

Cash

..................................................

199,500

14,982

935,396

Receivables:

Investment

securities

sold

.................................

101,307,215

433,325

22,056,280

Capital

shares

sold

......................................

12,914,330

29,673

33,805,209

Dividends

and

interest

...................................

4,142,042

10,386

7,038,920

Total

assets

........................................

19,746,207,463

78,645,561

15,671,965,442

Liabilities:

Payables:

Investment

securities

purchased

............................

37,533,565

1,617

471,871

Capital

shares

redeemed

.................................

23,700,913

1,033,098

20,406,240

Management

fees

.......................................

7,252,503

17,246

5,897,538

Distribution

fees

........................................

2,607,794

18,185

2,569,279

Transfer

agent

fees

......................................

3,202,583

27,254

3,385,140

Trustees'

fees

and

expenses

...............................

1,673

—

3,131

Accrued

expenses

and

other

liabilities

.........................

1,363,670

52,601

752,315

Total

liabilities

.......................................

75,662,701

1,150,001

33,485,514

Net

assets,

at

value

...............................

$19,670,544,762

$77,495,560

$15,638,479,928

Net

assets

consist

of:

Paid-in

capital

...........................................

$12,553,181,734

$76,766,448

$4,031,332,256

Total

distributable

earnings

(losses)

...........................

7,117,363,028

729,112

11,607,147,672

Net

assets,

at

value

...............................

$19,670,544,762

$77,495,560

$15,638,479,928

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

September

30,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Class

A:

Net

assets,

at

value

.....................................

$8,669,145,467

$57,250,701

$10,072,509,456

Shares

outstanding

......................................

74,467,535

2,313,149

87,525,425

Net

asset

value

per

share

a

................................

$116.42

$24.75

$115.08

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94

.

5

0

%

,

—%

and

94

.

5

0

%

,

respectively)

(Note

3d)

.....................

$123.20

$24.75

$121.78

Class

C:

Net

assets,

at

value

.....................................

$774,154,392

$5,016,695

$333,955,891

Shares

outstanding

......................................

8,315,860

208,269

3,405,034

Net

asset

value

and

maximum

offering

price

per

sha

re

a

(Note

3d)

...

$93.09

$24.09

$98.08

Class

R:

Net

assets,

at

value

.....................................

$212,067,950

$1,092,872

$256,889,229

Shares

outstanding

......................................

1,900,805

44,493

2,261,254

Net

asset

value

and

maximum

offering

price

per

share

...........

$111.57

$24.56

$113.60

Class

R6:

Net

assets,

at

value

.....................................

$7,515,703,007

$—

$2,114,155,091

Shares

outstanding

......................................

60,931,380

—

18,199,668

Net

asset

value

and

maximum

offering

price

per

share

...........

$123.35

$—

$116.16

Advisor

Class:

Net

assets,

at

value

.....................................

$2,499,473,946

$14,135,292

$2,860,970,261

Shares

outstanding

......................................

20,561,393

565,592

24,618,547

Net

asset

value

and

maximum

offering

price

per

share

...........

$121.56

$24.99

$116.21

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)

September

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

121

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$71,680,930,471

$2,874,436,183

$3,024,581,873

Cost

-

Non-controlled

affiliates

(Note

3

f

and

10

)

.................

745,794,493

67,238,754

20,399,531

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$39,735,302,

$—

and

$—,

respectively)

.................................

$68,135,486,487

$2,439,840,966

$5,468,779,254

Value

-

Non-controlled

affiliates

(Note

3

f

and

10

)

................

739,815,095

67,238,754

20,399,531

Cash

..................................................

11,486,432

—

4,095,701

Receivables:

Investment

securities

sold

.................................

225,026,175

—

—

Capital

shares

sold

......................................

32,220,007

2,788,070

2,728,741

Dividends

and

interest

...................................

757,996,272

8,309,962

13,232,617

European

Union

tax

reclaims

(Note

1

i

)

.......................

27,382,012

—

—

Deposits

with

brokers

for:

Futures

contracts

......................................

139,500,000

—

—

Variation

margin

on

futures

contracts

.........................

12,937,230

—

—

Total

assets

........................................

70,081,849,710

2,518,177,752

5,509,235,844

Liabilities:

Payables:

Investment

securities

purchased

............................

752,496,755

249,919

258,742

Capital

shares

redeemed

.................................

48,221,098

3,857,077

5,495,331

Management

fees

.......................................

21,678,409

967,134

2,366,990

Distribution

fees

........................................

10,689,052

340,211

768,528

Transfer

agent

fees

......................................

10,600,497

679,675

1,251,133

Trustees'

fees

and

expenses

...............................

3,798

1,488

767

Distributions

to

shareholders

...............................

1,343

—

—

Options

written,

at

value

(premiums

received

$98,516,643,

$–

and

$–,

respectively)

............................................

87,227,000

—

—

Accrued

expenses

and

other

liabilities

.........................

2,133,180

300,682

295,955

Total

liabilities

.......................................

933,051,132

6,396,186

10,437,446

Net

assets,

at

value

...............................

$69,148,798,578

$2,511,781,566

$5,498,798,398

Net

assets

consist

of:

Paid-in

capital

...........................................

$73,626,054,046

$3,755,512,246

$2,872,826,608

Total

distributable

earnings

(losses)

...........................

(4,477,255,468)

(1,243,730,680)

2,625,971,790

Net

assets,

at

value

...............................

$69,148,798,578

$2,511,781,566

$5,498,798,398

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

September

30,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

122

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Class

A:

Net

assets,

at

value

.....................................

$19,705,318,771

$607,527,194

$1,116,740,231

Shares

outstanding

......................................

8,983,810,362

125,121,604

59,908,837

Net

asset

value

per

share

a

................................

$2.19

$4.86

$18.64

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

..............................................

$2.28

$5.05

$19.37

Class

A1:

Net

assets,

at

value

.....................................

$29,633,018,678

$1,362,598,427

$2,752,653,064

Shares

outstanding

......................................

13,480,810,467

280,503,898

147,615,965

Net

asset

value

per

share

a

................................

$2.20

$4.86

$18.65

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

..............................................

$2.29

$5.05

$19.38

Class

C:

Net

assets,

at

value

.....................................

$4,905,480,180

$60,692,559

$218,134,206

Shares

outstanding

......................................

2,189,907,255

12,593,493

11,774,564

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$2.24

$4.82

$18.53

Class

R:

Net

assets,

at

value

.....................................

$300,283,382

$14,078,134

$89,084,593

Shares

outstanding

......................................

139,867,262

2,898,751

4,800,673

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.15

$4.86

$18.56

Class

R6:

Net

assets,

at

value

.....................................

$1,662,931,324

$204,316,715

$187,584,792

Shares

outstanding

......................................

760,052,134

41,865,166

9,958,470

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.19

$4.88

$18.84

Advisor

Class:

Net

assets,

at

value

.....................................

$12,941,766,243

$262,568,537

$1,134,601,512

Shares

outstanding

......................................

5,945,416,774

53,858,009

60,228,174

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.18

$4.88

$18.84

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

year

ended

September

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

123

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$1,154,040,

$8,649

and

$909,229,

respectively)

Unaffiliated

issuers

......................................

$79,440,676

$431,993

$147,762,107

Non-controlled

affiliates

(Note

3

f

and

10

)

......................

8,342,288

119,821

4,422,471

Interest:

Unaffiliated

issuers

......................................

703,065

—

—

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

...................

25,023

—

8,254

Non-controlled

affiliates

(Note

3

f

)

...........................

176,402

—

6,403

Total

investment

income

.................................

88,687,454

551,814

152,199,235

Expenses:

Management

fees

(Note

3

a

)

.................................

81,515,784

580,590

69,711,082

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

20,329,531

155,691

25,153,108

    Class

C

..............................................

7,635,003

46,729

4,112,453

    Class

R

..............................................

1,043,225

4,908

1,337,991

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

9,930,415

123,972

10,162,337

    Class

C

..............................................

937,884

9,129

418,161

    Class

R

..............................................

256,263

1,901

271,142

    Class

R6

.............................................

1,409,691

113

465,842

    Advisor

Class

..........................................

2,943,989

26,489

2,920,305

Custodian

fees

(Note

4

)

....................................

177,349

644

87,380

Reports

to

shareholders

fees

................................

2,773,218

10,381

302,493

Registration

and

filing

fees

..................................

246,867

95,559

398,708

Professional

fees

.........................................

97,980

62,633

118,781

Trustees'

fees

and

expenses

................................

208,832

269

188,350

Interest

expense

.........................................

2,170

—

14,346

Other

..................................................

540,042

9,677

440,562

Total

expenses

.......................................

130,048,243

1,128,685

116,103,041

Expense

reductions

(Note

4

)

.............................

(8,173)

(21)

(24,106)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(765,879)

(215,872)

(384,003)

Net

expenses

.......................................

129,274,191

912,792

115,694,932

Net

investment

income

(loss)

..........................

(40,586,737)

(360,978)

36,504,303

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(626,388,742)

(3,218,754)

1,015,593,732

Foreign

currency

transactions

..............................

686,873

1,973

28,756

Net

realized

gain

(loss)

................................

(625,701,869)

(3,216,781)

1,015,622,488

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

4,822,664,347

24,153,663

1,825,452,376

Non-controlled

affiliates

(Note

3

f

and

10

)

....................

—

—

3,519,973

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

...........................................

10,429

20

297

Net

change

in

unrealized

appreciation

(depreciation)

..........

4,822,674,776

24,153,683

1,828,972,646

Net

realized

and

unrealized

gain

(loss)

..........................

4,196,972,907

20,936,902

2,844,595,134

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$4,156,386,170

$20,575,924

$2,881,099,437

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

September

30,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

124

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$13,862,201,

$–

and

$1,409,547,

respectively)

Unaffiliated

issuers

......................................

$607,198,953

$—

$201,306,374

Non-controlled

affiliates

(Note

3

f

and

10

)

......................

56,431,254

2,073,812

812,396

Interest:

Unaffiliated

issuers:

Paydown

gain

(loss)

...................................

106,488

(11,990,474)

—

Paid

in

cash

a

.........................................

2,680,998,119

99,961,851

—

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

...................

(259,539)

—

—

Non-controlled

affiliates

(Note

3

f

)

...........................

4,852,893

—

—

Other

income

(Note

1

i

)

.....................................

4,178,592

—

—

Total

investment

income

.................................

3,353,506,760

90,045,189

202,118,770

Expenses:

Management

fees

(Note

3

a

)

.................................

266,634,174

12,638,728

29,075,818

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

47,996,759

1,620,357

3,151,149

    Class

A1

.............................................

47,133,212

2,174,878

4,816,603

    Class

C

..............................................

35,997,461

734,528

1,817,644

    Class

R

..............................................

1,493,905

77,932

536,189

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

15,403,564

819,168

1,302,182

    Class

A1

.............................................

25,220,213

1,908,913

3,309,178

    Class

C

..............................................

4,446,167

143,373

286,522

    Class

R

..............................................

239,723

19,615

110,428

    Class

R6

.............................................

413,581

67,384

133,664

    Advisor

Class

..........................................

10,429,362

362,284

1,402,395

Custodian

fees

(Note

4

)

....................................

816,597

—

39,189

Reports

to

shareholders

fees

................................

2,128,948

152,307

50,129

Registration

and

filing

fees

..................................

1,176,436

65,850

194,908

Professional

fees

.........................................

—

86,886

81,872

Trustees'

fees

and

expenses

................................

867,377

34,823

81,990

Interest

expense

.........................................

—

—

541

Other

..................................................

835,809

(1,060,738)

168,504

Total

expenses

.......................................

461,233,288

19,846,288

46,558,905

Expense

reductions

(Note

4

)

.............................

—

—

(1,400)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(5,231,500)

(189,109)

(146,180)

Net

expenses

.......................................

456,001,788

19,657,179

46,411,325

Net

investment

income

..............................

2,897,504,972

70,388,010

155,707,445

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

September

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

125

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

....................................

1,122,797,806

(11,489,373)

196,559,229

Written

options

.........................................

371,224,717

—

—

Foreign

currency

transactions

..............................

(1,985,405)

—

(434,743)

Futures

contracts

.......................................

(216,973,008)

—

—

Net

realized

gain

(loss)

................................

1,275,064,110

(11,489,373)

196,124,486

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

1,538,588,234

(63,522,640)

(574,108,727)

Non-controlled

affiliates

(Note

3

f

and

10

)

....................

(6,077,870)

—

—

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

...........................................

7,832,067

—

44,631

Written

options

.........................................

14,778,567

—

—

Futures

contracts

.......................................

(180,221,824)

—

—

Net

change

in

unrealized

appreciation

(depreciation)

..........

1,374,899,174

(63,522,640)

(574,064,096)

Net

realized

and

unrealized

gain

(loss)

..........................

2,649,963,284

(75,012,013)

(377,939,610)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$5,547,468,256

$(4,624,003)

$(222,232,165)

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

126

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Year

Ended

September

30,

2023

Year

Ended

September

30,

2022

Year

Ended

September

30,

2023

Year

Ended

September

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

in

come

(loss)

.......

$(40,586,737)

$(84,996,268)

$(360,978)

$(671,705)

Net

realized

gain

(loss)

............

(625,701,869)

(812,697,850)

(3,216,781)

(11,577,019)

Net

change

in

unrealized

appreciation

(depreciation)

.................

4,822,674,776

(10,578,235,213)

24,153,683

(33,530,551)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

4,156,386,170

(11,475,929,331)

20,575,924

(45,779,275)

Distributions

to

shareholders:

Class

A

........................

—

(172,943,583)

—

(493,434)

Class

C

........................

—

(23,184,109)

—

(38,188)

Class

R

........................

—

(4,586,975)

—

(5,897)

Class

R6

.......................

—

(134,824,197)

—

(415)

Advisor

Class

...................

—

(60,590,104)

—

(131,680)

Total

distributions

to

shareholders

.....

—

(396,128,968)

—

(669,614)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(337,773,209)

192,477,080

(11,501,059)

8,401,386

Class

C

........................

(106,526,277)

(72,201,401)

(25,915)

711,737

Class

R

........................

(23,054,438)

10,119,125

130,411

196,571

Class

R6

.......................

(428,242,325)

788,549,445

(70,140)

415

Advisor

Class

...................

(311,526,640)

(278,464,615)

1,117,619

(8,229,494)

Total

capital

share

transactions

.......

(1,207,122,889)

640,479,634

(10,349,084)

1,080,615

Net

increase

(decrease)

in

net

assets

.....................

2,949,263,281

(11,231,578,665)

10,226,840

(45,368,274)

Net

assets:

Beginning

of

year

..................

16,721,281,481

27,952,860,146

67,268,720

112,636,994

End

of

year

......................

$19,670,544,762

$16,721,281,481

$77,495,560

$67,268,720

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.

Annual

Report

127

Franklin

Growth

Fund

Franklin

Income

Fund

Year

Ended

September

30,

2023

Year

Ended

September

30,

2022

Year

Ended

September

30,

2023

Year

Ended

September

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$36,504,303

$14,326,662

$2,897,504,972

$2,273,669,839

Net

realized

gain

(loss)

............

1,015,622,488

1,846,110,618

1,275,064,110

430,503,782

Net

change

in

unrealized

appreciation

(depreciation)

.................

1,828,972,646

(6,521,606,215)

1,374,899,174

(7,786,851,093)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

2,881,099,437

(4,661,168,935)

5,547,468,256

(5,082,677,472)

Distributions

to

shareholders:

Class

A

........................

(909,635,091)

(1,168,961,036)

(1,088,887,170)

(1,152,988,107)

Class

A1

.......................

—

—

(1,829,113,474)

(2,410,250,572)

Class

C

........................

(44,719,554)

(66,622,776)

(288,652,148)

(440,734,378)

Class

R

........................

(24,964,554)

(34,890,151)

(16,524,734)

(18,070,687)

Class

R6

.......................

(198,355,706)

(278,038,777)

(89,382,048)

(71,339,359)

Advisor

Class

...................

(266,375,785)

(380,494,855)

(775,029,689)

(871,094,088)

Total

distributions

to

shareholders

.....

(1,444,050,690)

(1,929,007,595)

(4,087,589,263)

(4,964,477,191)

Capital

share

transactions:

(Note

2

)

Class

A

........................

43,938,573

278,407,375

2,570,603,933

3,309,460,327

Class

A1

.......................

—

—

(1,352,914,020)

(809,147,805)

Class

C

........................

(105,822,260)

(49,537,765)

(915,970,034)

(977,179,035)

Class

R

........................

(16,786,530)

(30,209,220)

25,115,227

53,857,218

Class

R6

.......................

(87,230,658)

(204,647,567)

491,347,753

581,612,935

Advisor

Class

...................

(62,355,424)

(306,999,175)

1,081,950,846

1,445,415,173

Total

capital

share

transactions

.......

(228,256,299)

(312,986,352)

1,900,133,705

3,604,018,813

Net

increase

(decrease)

in

net

assets

.....................

1,208,792,448

(6,903,162,882)

3,360,012,698

(6,443,135,850)

Net

assets:

Beginning

of

year

..................

14,429,687,480

21,332,850,362

65,788,785,880

72,231,921,730

End

of

year

......................

$15,638,479,928

$14,429,687,480

$69,148,798,578

$65,788,785,880

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

128

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Year

Ended

September

30,

2023

Year

Ended

September

30,

2022

Year

Ended

September

30,

2023

Year

Ended

September

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$70,388,010

$56,545,892

$155,707,445

$145,646,532

Net

realized

gain

(loss)

............

(11,489,373)

(58,392,142)

196,124,486

109,367,801

Net

change

in

unrealized

appreciation

(depreciation)

.................

(63,522,640)

(461,258,575)

(574,064,096)

64,616,747

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(4,624,003)

(463,104,825)

(222,232,165)

319,631,080

Distributions

to

shareholders:

Class

A

........................

(18,992,408)

(20,267,585)

(47,301,433)

(55,029,799)

Class

A1

.......................

(45,747,379)

(46,598,044)

(123,955,611)

(176,291,048)

Class

C

........................

(2,788,226)

(3,045,344)

(9,576,816)

(16,186,173)

Class

R

........................

(418,094)

(367,976)

(3,775,562)

(4,384,032)

Class

R6

.......................

(6,525,019)

(7,008,183)

(9,040,783)

(9,709,506)

Advisor

Class

...................

(9,122,636)

(13,110,289)

(54,549,649)

(67,381,826)

Total

distributions

to

shareholders

.....

(83,593,762)

(90,397,421)

(248,199,854)

(328,982,384)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(58,993,421)

(204,548,972)

14,298,922

235,216,595

Class

A1

.......................

(182,231,037)

(227,866,480)

(241,581,831)

(116,776,805)

Class

C

........................

(53,026,368)

(57,456,291)

(67,137,551)

(52,951,717)

Class

R

........................

(850,366)

(1,409,442)

(6,763,361)

21,829,002

Class

R6

.......................

8,774,608

(63,528,606)

(20,302,748)

75,674,198

Advisor

Class

...................

(28,084,539)

(315,646,464)

(154,018,141)

198,701,770

Total

capital

share

transactions

.......

(314,411,123)

(870,456,255)

(475,504,710)

361,693,043

Net

increase

(decrease)

in

net

assets

.....................

(402,628,888)

(1,423,958,501)

(945,936,729)

352,341,739

Net

assets:

Beginning

of

year

..................

2,914,410,454

4,338,368,955

6,444,735,127

6,092,393,388

End

of

year

......................

$2,511,781,566

$2,914,410,454

$5,498,798,398

$6,444,735,127

Franklin

Custodian

Funds

129

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

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).

The

Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

a

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

a

Effective

September

13,

2023,

Franklin

Focused

Growth

Fund

liquidated

Class

R6.

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

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

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.

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

Franklin

Custodian

Funds

Notes

to

Financial

Statements

130

franklintempleton.com

Annual

Report

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

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

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

September

30,

2023,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

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.

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.

d.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

131

franklintempleton.com

Annual

Report

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

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

risk. A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statements

of

Assets

and

Liabilities.

At

September

30,

2023,

Franklin

DynaTech

Fund,

Franklin

Focused

Growth

Fund,

Franklin

Growth

Fund,

Franklin

U.S.

Government

Securities

Fund

and

Franklin

Utilities

Fund

had

no

futures

contracts.

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.

At September

30,

2023,

Franklin

DynaTech

Fund,

Franklin

Focused

Growth

Fund,

Franklin

Growth

Fund,

Franklin

U.S.

Government

Securities

Fund

and

Franklin

Utilities

Fund

had

no

option

contracts.

See

Note

9

regarding

other

derivative

information.

e.

Index-Linked

Notes

Certain

or

all

Funds

invest

in

index-linked

notes.

Index-linked

notes

are

senior,

unsecured,

subordinated

debt

securities

issued

by

a

financial

institution,

and

the

value

is

based

on

the

price

movements

of

the

underlying

index.

Index-linked

notes

are

designed

to

provide

investors

access

to

the

returns

of

various

market

benchmarks

and

intended

to

replicate

the

economic

effects

that

would

apply

had

the

Fund

directly

purchased

the

underlying

referenced

asset

or

basket

of

assets.

The

risks

of

investing

in

index-linked

notes

include

unfavorable

price

movements

in

the

underlying

index

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

index-linked

notes

and

the

appreciation

potential

may

be

limited.

Index-linked

notes

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Funds.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

132

franklintempleton.com

Annual

Report

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

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Funds.

Additionally,

at

September

30,

2023,

Franklin

DynaTech

Fund

and

Franklin

Income

Fund

held

$492,893

and

$41,176,622,

respectively,

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held

as

collateral

in

segregated

accounts

with

the

Funds'

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.

At

September

30,

2023,

Franklin

Focused

Growth

Fund,

Franklin

Growth

Fund,

Franklin

U.S.

Government

Securities

Fund

and

Franklin

Utilities

Fund

had

no

securities

on

loan.

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),

or

the

Secured

Overnight

Financing

Rate

(SOFR).

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

September

30,

2023, 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

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Securities

Lending

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

133

franklintempleton.com

Annual

Report

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

in

the

Statements

of

Operations.

Certain

or

all

Funds

may

receive

other

income

from

investments

in

senior

secured

corporate

loans

or

unfunded

commitments,

including

amendment

fees,

consent

fees

or

commitment

fees.

These

fees

are

recorded

as

income

when

received

by

the

Funds.

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)

i.

Income

and

Deferred

Taxes

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

134

franklintempleton.com

Annual

Report

2.

Shares

of

Beneficial

Interest

At

September

30,

2023,

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

a

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

September

30,

2023

Shares

sold

b

...................................

10,835,412

$1,175,640,499

1,233,955

$28,366,209

Shares

redeemed

...............................

(14,127,682)

(1,513,413,708)

(1,668,340)

(39,867,268)

Net

increase

(decrease)

..........................

(3,292,270)

$(337,773,209)

(434,385)

$(11,501,059)

Year

ended

September

30,

2022

Shares

sold

b

...................................

14,363,386

$1,856,702,021

1,213,199

$33,600,799

Shares

issued

in

reinvestment

of

distributions

..........

1,053,354

163,733,239

15,386

489,286

Shares

redeemed

...............................

(14,802,906)

(1,827,958,180)

(1,027,936)

(25,688,699)

Net

increase

(decrease)

..........................

613,834

$192,477,080

200,649

$8,401,386

Class

C

Class

C

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

1,092,810

$94,835,391

94,040

$2,082,520

Shares

redeemed

b

..............................

(2,355,286)

(201,361,668)

(94,696)

(2,108,435)

Net

increase

(decrease)

..........................

(1,262,476)

$(106,526,277)

(656)

$(25,915)

Year

ended

September

30,

2022

Shares

sold

...................................

1,588,693

$169,004,456

97,172

$2,671,024

Shares

issued

in

reinvestment

of

distributions

..........

175,065

22,063,462

1,220

38,258

Shares

redeemed

b

..............................

(2,641,655)

(263,269,319)

(82,494)

(1,997,545)

Net

increase

(decrease)

..........................

(877,897)

$(72,201,401)

15,898

$711,737

Class

R

Class

R

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

255,007

$26,525,522

18,468

$403,494

Shares

redeemed

...............................

(472,660)

(49,579,960)

(11,616)

(273,083)

Net

increase

(decrease)

..........................

(217,653)

$(23,054,438)

6,852

$130,411

Year

ended

September

30,

2022

Shares

sold

...................................

453,729

$56,189,217

24,654

$667,940

Shares

issued

in

reinvestment

of

distributions

..........

30,631

4,583,974

186

5,897

Shares

redeemed

...............................

(422,749)

(50,654,066)

(18,389)

(477,266)

Net

increase

(decrease)

..........................

61,611

$10,119,125

6,451

$196,571

Class

R6

Franklin

Custodian

Funds

Notes

to

Financial

Statements

135

franklintempleton.com

Annual

Report

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

a

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

13,862,160

$1,552,849,083

3,859

$93,822

Shares

redeemed

...............................

(17,471,967)

(1,981,091,408)

(6,233)

(163,962)

Net

increase

(decrease)

..........................

(3,609,807)

$(428,242,325)

(2,374)

$(70,140)

Year

ended

September

30,

2022

Shares

sold

...................................

19,924,717

$2,652,793,439

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

819,201

134,013,149

13

415

Shares

redeemed

...............................

(15,624,599)

(1,998,257,143)

—

—

Net

increase

(decrease)

..........................

5,119,319

$788,549,445

13

$415

Advisor

Class

Advisor

Class

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

4,935,450

$549,668,851

400,540

$8,729,317

Shares

redeemed

...............................

(7,969,253)

(861,195,491)

(324,805)

(7,611,698)

Net

increase

(decrease)

..........................

(3,033,803)

$(311,526,640)

75,735

$1,117,619

Year

ended

September

30,

2022

Shares

sold

...................................

8,399,379

$1,127,784,359

315,963

$8,974,322

Shares

issued

in

reinvestment

of

distributions

..........

331,088

53,493,894

4,116

131,564

Shares

redeemed

...............................

(11,793,370)

(1,459,742,868)

(618,869)

(17,335,380)

Net

increase

(decrease)

..........................

(3,062,903)

$(278,464,615)

(298,790)

$(8,229,494)

Franklin

Growth

Fund

Franklin

Income

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

September

30,

2023

Shares

sold

b

...................................

8,919,861

$1,004,330,038

1,958,333,384

$4,444,609,074

Shares

issued

in

reinvestment

of

distributions

..........

8,412,633

874,241,477

442,719,983

1,006,637,852

Shares

redeemed

...............................

(16,309,554)

(1,834,632,942)

(1,270,723,185)

(2,880,642,993)

Net

increase

(decrease)

..........................

1,022,940

$43,938,573

1,130,330,182

$2,570,603,933

Year

ended

September

30,

2022

Shares

sold

b

...................................

7,112,775

$950,008,754

1,967,528,153

$4,769,802,324

Shares

issued

in

reinvestment

of

distributions

..........

7,829,335

1,123,352,847

441,349,127

1,064,714,504

Shares

redeemed

...............................

(13,642,430)

(1,794,954,226)

(1,046,858,486)

(2,525,056,501)

Net

increase

(decrease)

..........................

1,299,680

$278,407,375

1,362,018,794

$3,309,460,327

Class

A1

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

136

franklintempleton.com

Annual

Report

Franklin

Growth

Fund

Franklin

Income

Fund

Shares

Amount

Shares

Amount

Class

A1

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

—

$—

459,374,313

$1,043,033,441

Shares

issued

in

reinvestment

of

distributions

..........

—

—

737,289,877

1,678,831,635

Shares

redeemed

...............................

—

—

(1,793,735,206)

(4,074,779,096)

Net

increase

(decrease)

..........................

—

$—

(597,071,016)

$(1,352,914,020)

Year

ended

September

30,

2022

Shares

sold

...................................

—

$—

462,966,749

$1,128,353,082

Shares

issued

in

reinvestment

of

distributions

..........

—

—

921,359,816

2,231,616,951

Shares

redeemed

...............................

—

—

(1,716,035,662)

(4,169,117,838)

Net

increase

(decrease)

..........................

—

$—

(331,709,097)

$(809,147,805)

Class

C

Class

C

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

668,819

$64,223,834

313,172,661

$725,942,414

Shares

issued

in

reinvestment

of

distributions

..........

495,681

44,160,212

119,089,335

276,353,693

Shares

redeemed

b

..............................

(2,195,278)

(214,206,306)

(829,490,789)

(1,918,266,141)

Net

increase

(decrease)

..........................

(1,030,778)

$(105,822,260)

(397,228,793)

$(915,970,034)

Year

ended

September

30,

2022

Shares

sold

...................................

555,692

$66,038,572

376,265,055

$933,445,062

Shares

issued

in

reinvestment

of

distributions

..........

521,624

65,667,219

172,175,078

424,342,430

Shares

redeemed

b

..............................

(1,579,860)

(181,243,556)

(943,189,191)

(2,334,966,527)

Net

increase

(decrease)

..........................

(502,544)

$(49,537,765)

(394,749,058)

$(977,179,035)

Class

R

Class

R

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

294,779

$32,903,635

30,456,104

$67,677,054

Shares

issued

in

reinvestment

of

distributions

..........

242,555

24,932,223

7,381,783

16,432,512

Shares

redeemed

...............................

(668,878)

(74,622,388)

(26,586,799)

(58,994,339)

Net

increase

(decrease)

..........................

(131,544)

$(16,786,530)

11,251,088

$25,115,227

Year

ended

September

30,

2022

Shares

sold

...................................

225,684

$29,038,794

38,495,084

$91,632,223

Shares

issued

in

reinvestment

of

distributions

..........

244,578

34,832,817

7,597,250

17,950,459

Shares

redeemed

...............................

(699,391)

(94,080,831)

(23,493,263)

(55,725,464)

Net

increase

(decrease)

..........................

(229,129)

$(30,209,220)

22,599,071

$53,857,218

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

137

franklintempleton.com

Annual

Report

Franklin

Growth

Fund

Franklin

Income

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

2,621,003

$298,026,426

322,258,788

$726,763,497

Shares

issued

in

reinvestment

of

distributions

..........

1,715,972

179,878,131

35,330,547

80,079,184

Shares

redeemed

...............................

(4,974,150)

(565,135,215)

(139,602,997)

(315,494,928)

Net

increase

(decrease)

..........................

(637,175)

$(87,230,658)

217,986,338

$491,347,753

Year

ended

September

30,

2022

Shares

sold

...................................

3,675,674

$475,633,325

297,381,010

$723,113,206

Shares

issued

in

reinvestment

of

distributions

..........

1,758,267

253,489,423

25,240,470

60,705,956

Shares

redeemed

in-kind

(Note

12

)

..................

(448,827)

(65,832,485)

—

—

Shares

redeemed

...............................

(6,581,226)

(867,937,830)

(83,879,771)

(202,206,227)

Net

increase

(decrease)

..........................

(1,596,112)

$(204,647,567)

238,741,709

$581,612,935

Advisor

Class

Advisor

Class

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

3,710,821

$417,749,821

1,459,603,354

$3,293,204,682

Shares

issued

in

reinvestment

of

distributions

..........

2,262,495

237,226,372

316,588,066

714,220,227

Shares

redeemed

...............................

(6,322,439)

(717,331,617)

(1,301,500,962)

(2,925,474,063)

Net

increase

(decrease)

..........................

(349,123)

$(62,355,424)

474,690,458

$1,081,950,846

Year

ended

September

30,

2022

Shares

sold

...................................

5,539,441

$691,586,170

1,421,259,437

$3,411,492,621

Shares

issued

in

reinvestment

of

distributions

..........

2,305,617

332,746,676

333,722,149

799,087,621

Shares

redeemed

in-kind

(Not

e

3h)

..................

(924,131)

(104,759,504)

—

—

Shares

redeemed

...............................

(9,694,616)

(1,226,572,517)

(1,157,679,072)

(2,765,165,069)

Net

increase

(decrease)

..........................

(2,773,689)

$(306,999,175)

597,302,514

$1,445,415,173

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

September

30,

2023

Shares

sold

b

...................................

25,502,060

$128,982,735

13,072,954

$271,677,836

Shares

issued

in

reinvestment

of

distributions

..........

3,560,276

18,048,016

1,986,664

42,069,637

Shares

redeemed

...............................

(40,571,399)

(206,024,172)

(14,408,448)

(299,448,551)

Net

increase

(decrease)

..........................

(11,509,063)

$(58,993,421)

651,170

$14,298,922

Year

ended

September

30,

2022

Shares

sold

b

...................................

28,163,866

$157,662,763

20,426,933

$453,472,027

Shares

issued

in

reinvestment

of

distributions

..........

3,489,049

19,245,353

2,332,270

48,266,115

Shares

redeemed

...............................

(68,182,403)

(381,457,088)

(12,123,828)

(266,521,547)

Net

increase

(decrease)

..........................

(36,529,488)

$(204,548,972)

10,635,375

$235,216,595

Class

A1

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

138

franklintempleton.com

Annual

Report

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Shares

Amount

Shares

Amount

Class

A1

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

16,661,587

$84,268,130

5,639,347

$116,568,550

Shares

issued

in

reinvestment

of

distributions

..........

8,176,665

41,483,470

5,353,956

113,432,565

Shares

redeemed

...............................

(60,580,369)

(307,982,637)

(22,742,906)

(471,582,946)

Net

increase

(decrease)

..........................

(35,742,117)

$(182,231,037)

(11,749,603)

$(241,581,831)

Year

ended

September

30,

2022

Shares

sold

...................................

10,992,579

$61,460,301

6,815,891

$150,191,697

Shares

issued

in

reinvestment

of

distributions

..........

7,641,977

42,120,329

7,794,675

161,036,003

Shares

redeemed

...............................

(59,374,388)

(331,447,110)

(19,602,339)

(428,004,505)

Net

increase

(decrease)

..........................

(40,739,832)

$(227,866,480)

(4,991,773)

$(116,776,805)

Class

C

Class

C

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

11,456,357

$57,859,125

1,302,789

$27,051,481

Shares

issued

in

reinvestment

of

distributions

..........

546,291

2,755,118

439,989

9,300,965

Shares

redeemed

b

..............................

(22,658,314)

(113,640,611)

(5,010,140)

(103,489,997)

Net

increase

(decrease)

..........................

(10,655,666)

$(53,026,368)

(3,267,362)

$(67,137,551)

Year

ended

September

30,

2022

Shares

sold

...................................

4,759,211

$26,534,963

2,115,656

$46,531,797

Shares

issued

in

reinvestment

of

distributions

..........

546,780

2,996,336

769,737

15,737,676

Shares

redeemed

b

..............................

(15,663,297)

(86,987,590)

(5,296,474)

(115,221,190)

Net

increase

(decrease)

..........................

(10,357,306)

$(57,456,291)

(2,411,081)

$(52,951,717)

Class

R

Class

R

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

798,409

$4,104,492

1,136,867

$23,573,767

Shares

issued

in

reinvestment

of

distributions

..........

81,889

415,457

178,708

3,775,361

Shares

redeemed

...............................

(1,056,206)

(5,370,315)

(1,649,313)

(34,112,489)

Net

increase

(decrease)

..........................

(175,908)

$(850,366)

(333,738)

$(6,763,361)

Year

ended

September

30,

2022

Shares

sold

...................................

781,481

$4,240,961

1,807,582

$39,910,876

Shares

issued

in

reinvestment

of

distributions

..........

66,564

366,299

212,284

4,365,844

Shares

redeemed

...............................

(1,083,625)

(6,016,702)

(1,033,330)

(22,447,718)

Net

increase

(decrease)

..........................

(235,580)

$(1,409,442)

986,536

$21,829,002

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

139

franklintempleton.com

Annual

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:

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

12,838,713

$65,145,828

3,653,507

$76,827,234

Shares

issued

in

reinvestment

of

distributions

..........

1,259,495

6,416,241

421,790

9,015,064

Shares

redeemed

...............................

(12,294,254)

(62,787,461)

(5,046,545)

(106,145,046)

Net

increase

(decrease)

..........................

1,803,954

$8,774,608

(971,248)

$(20,302,748)

Year

ended

September

30,

2022

Shares

sold

...................................

9,713,988

$54,869,336

5,404,404

$121,039,182

Shares

issued

in

reinvestment

of

distributions

..........

1,245,685

6,913,611

460,767

9,666,565

Shares

redeemed

...............................

(22,336,576)

(125,311,553)

(2,484,233)

(55,031,549)

Net

increase

(decrease)

..........................

(11,376,903)

$(63,528,606)

3,380,938

$75,674,198

Advisor

Class

Advisor

Class

Shares:

Year

ended

September

30,

2023

Shares

sold

...................................

15,353,248

$78,738,231

11,834,588

$249,807,250

Shares

issued

in

reinvestment

of

distributions

..........

1,584,307

8,062,313

2,401,364

51,373,895

Shares

redeemed

...............................

(22,516,109)

(114,885,083)

(21,605,799)

(455,199,286)

Net

increase

(decrease)

..........................

(5,578,554)

$(28,084,539)

(7,369,847)

$(154,018,141)

Year

ended

September

30,

2022

Shares

sold

...................................

26,643,569

$146,873,967

18,972,988

$427,940,062

Shares

issued

in

reinvestment

of

distributions

..........

2,135,912

11,924,174

3,023,204

63,261,713

Shares

redeemed

...............................

(86,296,878)

(474,444,605)

(13,271,920)

(292,500,005)

Net

increase

(decrease)

..........................

(57,517,397)

$(315,646,464)

8,724,272

$198,701,770

a

Effective

September

13,

2023,

Class

R6

was

liquidated.

b

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

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

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

140

franklintempleton.com

Annual

Report

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:

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

3.

Transactions

with

Affiliates

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

141

franklintempleton.com

Annual

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

year

ended

September

30,

2023,

each

Fund's

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

........

0.436%

0.700%

0.442%

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Gross

effective

investment

management

fee

rate

........

0.376%

0.456%

0.451%

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

142

franklintempleton.com

Annual

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

year:

Effective

March

1,

2023,

any

front-end

sales

charges

applicable

to

the

purchase

of

Franklin

Focused

Growth

Fund

shares

or

CDSC

applicable

to

the

redemption

of

the

Fund’s

shares

are

waived.

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

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

Class

A

...............................

0.25%

0.25%

0.25%

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

Class

A

...............................

0.25%

0.25%

0.25%

Class

A1

..............................

0.15%

0.15%

0.15%

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

..................

$1,805,698

$8,681

$976,461

CDSC

retained

...........................

$114,789

$237

$49,060

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$2,682,048

$18,534

$104,347

CDSC

retained

...........................

$1,210,633

$16,434

$63,811

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

143

franklintempleton.com

Annual

Report

For

the

year ended

September

30,

2023,

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

year

ended

September

30,

2023,

investments

in

affiliated

management

investment

companies

were

as

follows:

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Transfer

agent

fees

........................

$5,204,602

$83,143

$5,274,657

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Transfer

agent

fees

........................

$19,433,817

$1,529,824

$2,238,219

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

DynaTech

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

$270,863,972

$1,902,413,131

$(2,079,352,498)

$—

$—

$93,924,605

93,924,605

$8,342,288

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

$385,000

$111,416,000

$(111,801,000)

$—

$—

$—

—

$176,402

Total

Affiliated

Securities

...

$271,248,972

$2,013,829,131

$(2,191,153,498)

$—

$—

$93,924,605

$8,518,690

Franklin

Focused

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

$1,276,224

$28,024,098

$(28,852,052)

$—

$—

$448,270

448,270

$119,821

Total

Affiliated

Securities

...

$1,276,224

$28,024,098

$(28,852,052)

$—

$—

$448,270

$119,821

3.

Transactions

with

Affiliates

(continued)

e.

Transfer

Agent

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

144

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

Franklin

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

$69,725,524

$1,611,107,347

$(1,610,878,025)

$—

$—

$69,954,846

69,954,846

$4,422,471

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

$—

$25,755,000

$(25,755,000)

$—

$—

$—

—

$6,403

Total

Affiliated

Securities

...

$69,725,524

$1,636,862,347

$(1,636,633,025)

$—

$—

$69,954,846

$4,428,874

Franklin

Income

Fund

Non-Controlled

Affiliates

Dividends

Clarion

Partners

Real

Estate

Income

Fund,

Inc.,

Class

I

....

$75,098,472

$25,000,000

$—

$—

$(6,077,870)

$94,020,602

7,867,833

$5,825,627

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

880,891,701

17,750,871,198

(17,985,968,406)

—

—

645,794,493

645,794,493

50,605,627

Total

Non-Controlled

Affiliates

$955,990,173

$17,775,871,198

$(17,985,968,406)

$

—

$

(6,077,870)

$739,815,095

$

56,431,254

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

$124,103,000

$479,836,000

$(603,939,000)

$—

$—

$—

—

$4,852,893

Total

Affiliated

Securities

...

$1,080,093,173

$18,255,707,198

$(18,589,907,406)

$—

$(6,077,870)

$739,815,095

$61,284,147

Franklin

U.S.

Government

Securities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

$47,626,883

$439,798,860

$(420,186,989)

$—

$—

$67,238,754

67,238,754

$2,073,812

Total

Affiliated

Securities

...

$47,626,883

$439,798,860

$(420,186,989)

$—

$—

$67,238,754

$2,073,812

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

145

franklintempleton.com

Annual

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,

2024.

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,

2024.

h.

Other

Affiliated

Transactions

During

the

year

ended

September

30,

2022,

the

New

Jersey

Better

Educational

Savings

Trust

Program

–

Franklin

Templeton

Managed

Investments

Options

(529

Portfolios)

redeemed

out

of

Franklin

Growth

Fund.

As

a

result,

on

July

15,

2022,

the

Fund

delivered

portfolio

securities

and

cash

that

were

transferred

in-kind

to

the

529

Portfolios,

which

included

$74,761,884

of

net

realized

gains.

As

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.

4.

Expense

Offset

Arrangement

The Funds

have

previously

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

year

ended

September

30,

2023,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

For

Franklin

Income

Fund

and

Franklin

U.S.

Government

Securities

Fund,

effective July

10, 2023,

earned

credits,

if

any,

will

be

recognized

as

income.

For

Franklin

DynaTech

Fund,

Franklin Growth

Fund

and Franklin

Utilities

Fund,

effective September

21,

2023,

earned

credits,

if

any,

will

be

recognized

as

income.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

Franklin

Utilities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.019%

$67,045,219

$560,015,139

$(606,660,827)

$—

$—

$20,399,531

20,399,531

$812,396

Total

Affiliated

Securities

...

$67,045,219

$560,015,139

$(606,660,827)

$—

$—

$20,399,531

$812,396

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

146

franklintempleton.com

Annual

Report

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

September

30,

2023,

the

capital

loss

carryforwards

were

as

follows:

During

the

year

ended

Sep

tember

30,

2023,

the

following 

Fund

utilized

capital

loss

carryforwards

as

follows:

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,

2023

,

the

deferred

losses

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

September

30,

2023

and

2022,

was

as

follows:

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

1

1

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

.............................

$

1,494,736,002

$

10,557,832

$

672,035,575

$

349,782,198

Long

term

.............................

—

4,435,190

—

457,952,751

Total

capital

loss

carryforwards

............

$1,494,736,002

$14,993,022

$672,035,575

$807,734,949

Franklin

Income

Fund

Capital

loss

carryforwards

utilized

....

$10,715,760

Franklin

Dynatech

Fund

Franklin

Focused

Growth

Fund

Late-year

ordinary

loss

...........................

$30,489,840

$282,820

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

2023

2022

2023

2022

Distributions

paid

from:

Long

term

capital

gain

....................

$—

$396,128,968

$—

$669,614

Franklin

Growth

Fund

Franklin

Income

Fund

2023

2022

2023

2022

Distributions

paid

from:

Ordinary

income

........................

$9,174,871

$10,164,224

$4,087,589,263

$3,902,195,620

Long

term

capital

gain

....................

1,434,875,819

1,918,843,371

—

1,062,281,571

$1,444,050,690

$1,929,007,595

$4,087,589,263

$4,964,477,191

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

2023

2022

2023

2022

Distributions

paid

from:

Ordinary

income

........................

$83,593,762

$90,397,421

$151,418,612

$167,618,020

Long

term

capital

gain

....................

—

—

96,781,242

161,364,364

$83,593,762

$90,397,421

$248,199,854

$328,982,384

Franklin

Custodian

Funds

Notes

to

Financial

Statements

147

franklintempleton.com

Annual

Report

At

September

30,

2023,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains 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

wash

sales,

paydown

losses,

bond

discounts

and

premiums,

derivative

financial

instruments,

equity-linked

securities

and

net

operating

losses.

Franklin

Growth

Fund

and

Franklin

Utilities

Fund

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

net

investment

income

and

realized

capital

gains.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

September

30,

2023,

were

as

follows:

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

a

a

a

a

Cost

of

investments

.......................

$10,985,031,511

$62,152,235

$4,979,022,894

Unrealized

appreciation

.....................

$8,773,211,542

$17,842,894

$10,873,854,365

Unrealized

depreciation

.....................

(130,598,677)

(1,837,934)

(244,747,622)

Net

unrealized

appreciation

(depreciation)

.......

$8,642,612,865

$16,004,960

$10,629,106,743

Distributable

earnings:

Undistributed

ordinary

income

................

$—

$—

$31,307,010

Undistributed

long

term

capital

gains

...........

—

—

946,735,037

Total

distributable

earnings

..................

$—

$—

$978,042,047

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

a

a

a

a

Cost

of

investments

.......................

$72,488,742,906

$2,943,078,128

$3,045,751,082

Unrealized

appreciation

.....................

$1,996,163,481

$394,966

$2,491,113,570

Unrealized

depreciation

.....................

(5,862,249,379)

(436,393,374)

(47,685,867)

Net

unrealized

appreciation

(depreciation)

.......

$(3,866,085,898)

$(435,998,408)

$2,443,427,703

Distributable

earnings:

Undistributed

ordinary

income

................

$33,987,448

$2,677

$4,263,996

Undistributed

long

term

capital

gains

...........

—

—

178,397,942

Total

distributable

earnings

..................

$33,987,448

$2,677

$182,661,938

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Purchases

..............................

$2,839,735,882

$21,721,803

$448,821,427

Sales

..................................

$4,038,604,283

$31,036,303

$2,130,226,247

5.

Income

Taxes

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

148

franklintempleton.com

Annual

Report

7.

Credit Risk

and

Defaulted

Securities

At

September

30,

2023,

Franklin

Income

Fund

had 23.9%

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.

Franklin

Income

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

September

30,

2023,

the

aggregate

value

of

these

securities

was

$218,653,724,

representing

0.3%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Schedule

of

Investments.

8.

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.

At

September

30,

2023,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Purchases

..............................

$40,400,441,585

$76,280,868

$282,463,109

Sales

..................................

$38,773,075,977

$413,661,510

$792,975,181

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Fund

25,413

Canva

,

Inc.

................................

11/08/21

$

43,323,040

$

28,524,759

2,353

Canva

,

Inc.,

A

..............................

11/08/21

4,011,298

2,641,119

94

Canva

,

Inc.,

A-3

.............................

11/08/21

160,247

105,510

8

Canva

,

Inc.,

A-4

.............................

11/08/21

13,638

8,980

5

Canva

,

Inc.,

A-5

.............................

11/08/21

8,524

5,612

96,603

Checkout

Payments

Group

Ltd.,

B

...............

1/11/22

30,000,062

8,383,837

822,494

Gusto,

Inc.,

E

...............................

7/13/21

24,999,977

22,949,784

849,894

OneTrust

LLC,

C

............................

4/01/21

16,666,676

12,730,065

540,043

Stripe,

Inc.,

B

...............................

5/18/21

21,671,052

11,756,907

1,759,545

Stripe,

Inc.,

I

...............................

3/15/23

-

5/08/23

35,426,925

38,305,853

Total

Restricted

Securities

(Value

is

0.8%

of

Net

Assets)

..............

$176,281,439

$125,412,426

6.

Investment

Transactions

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

149

franklintempleton.com

Annual

Report

9.

Other

Derivative

Information

At

September

30,

2023,

investments

in

derivative

contracts

are

reflected

in

the

Statements

of

Assets

and

Liabilities

as

follows:

For

the

year

ended

September

30,

2023

,

the

effect

of

derivative

contracts

in

the

Statements

of

Operations

was

as

follows:

For

the

year

ended

September

30,

2023,

the

average

month

end

notional

amount

of

futures

contracts

and

options

represented

$5,566,923,077

and

$53,743,054,

respectively.

See

Note

1(d)

regarding

derivative

financial

instruments. 

10.

Holding

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

year

ended

September

30,

2023,

investments

in

“affiliated

companies”

were

as

follows:

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

Interest

rate

contracts

.......

Variation

margin

on

futures

contracts

$

—

Variation

margin

on

futures

contracts

$

165,417,574

a

Equity

contracts

...........

Investments

in

securities,

at

value

—

Options

written,

at

value

87,227,000

Total

....................

$—

$252,644,574

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

schedule

of

investments.

Only

the

variation

margin

receivable/payable

at

year

end

is

separately

reported

within

the

Statements

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Income

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Futures

contracts

$(216,973,008)

Futures

contracts

$(180,221,824)

Equity

Contracts

..............

Written

options

371,224,717

Written

options

14,778,567

Total

.......................

$154,251,709

$(165,443,257)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

150

franklintempleton.com

Annual

Report

11.

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

2,

2024.

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

year ended

September

30,

2023,

the

Funds

did

not

use

the

Global

Credit

Facility.

12.

Redemption

In-Kind

During

the

year

ended

September

30,

2022,

Franklin

Growth

Fund

realized

$47,765,967

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.

13.

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)

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

Franklin

Growth

Fund

Non-Controlled

Affiliates

Dividends

OneTrust

LLC,

C

.....

$

9,210,092

$

—

$

—

$

—

$

3,519,973

$

12,730,065

849,894

$

—

Total

Affiliated

Securities

(Value

is

0.1%

of

Net

Assets)

..........

$9,210,092

$—

$—

$—

$3,519,973

$12,730,065

$—

10.

Holding

of

5%

Voting

Securities

of

Portfolio

Companies 

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

151

franklintempleton.com

Annual

Report

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

September

30,

2023,

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

...................

$

225,583,300

$

—

$

—

$

225,583,300

Automobile

Components

.................

24,930,000

—

—

24,930,000

Automobiles

..........................

625,550,000

—

—

625,550,000

Biotechnology

.........................

27,645,000

146,641,318

—

174,286,318

Broadline

Retail

.......................

1,524,776,000

—

—

1,524,776,000

Capital

Markets

........................

360,387,000

—

—

360,387,000

Communications

Equipment

..............

13,794,750

—

—

13,794,750

Construction

&

Engineering

...............

205,777,000

—

—

205,777,000

Diversified

Consumer

Services

............

20,733,750

—

—

20,733,750

Electric

Utilities

........................

131,767,000

—

—

131,767,000

Electrical

Equipment

....................

47,299,000

—

—

47,299,000

Electronic

Equipment,

Instruments

&

Components

........................

41,995,000

111,672,441

—

153,667,441

Energy

Equipment

&

Services

.............

307,990,000

—

—

307,990,000

Financial

Services

......................

913,358,500

66,725,910

—

980,084,410

Ground

Transportation

..................

149,467,500

—

—

149,467,500

Health

Care

Equipment

&

Supplies

.........

869,198,150

—

—

869,198,150

Health

Care

Providers

&

Services

..........

270,357,500

—

—

270,357,500

Health

Care

Technology

.................

91,552,500

—

—

91,552,500

Hotels,

Restaurants

&

Leisure

.............

114,186,500

—

—

114,186,500

Interactive

Media

&

Services

..............

1,012,049,250

—

—

1,012,049,250

IT

Services

...........................

622,922,473

—

—

622,922,473

Life

Sciences

Tools

&

Services

............

926,023,000

—

—

926,023,000

Media

...............................

23,445,000

—

—

23,445,000

Pharmaceuticals

.......................

384,152,000

—

—

384,152,000

Professional

Services

...................

174,649,150

—

—

174,649,150

Semiconductors

&

Semiconductor

Equipment

.

3,693,453,634

104,393,244

—

3,797,846,878

Software

.............................

5,839,712,450

14,382,451

—

5,854,094,901

Technology

Hardware,

Storage

&

Peripherals

.

428,025,000

—

—

428,025,000

Trading

Companies

&

Distributors

..........

19,124,000

—

—

19,124,000

Warrants

...............................

—

—

—

a

—

Short

Term

Investments

...................

93,924,605

—

—

93,924,605

Total

Investments

in

Securities

...........

$19,183,829,012

$443,815,364

b

$—

$19,627,644,376

Franklin

Focused

Growth

Fund

Assets:

Investments

in

Securities:

c

Common

Stocks

.........................

77,708,925

—

—

77,708,925

Short

Term

Investments

...................

448,270

—

—

448,270

Total

Investments

in

Securities

...........

$78,157,195

$—

$—

$78,157,195

Franklin

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

683,366,920

—

—

683,366,920

Automobiles

..........................

119,901,170

—

—

119,901,170

Beverages

...........................

539,449,461

—

—

539,449,461

Biotechnology

.........................

276,388,462

—

—

276,388,462

13.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

152

franklintempleton.com

Annual

Report

Level

1

Level

2

Level

3

Total

Franklin

Growth

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Broadline

Retail

.......................

$

577,013,443

$

—

$

—

$

577,013,443

Building

Products

......................

249,910,116

—

—

249,910,116

Capital

Markets

........................

648,294,574

—

—

648,294,574

Chemicals

...........................

490,750,269

—

—

490,750,269

Commercial

Services

&

Supplies

...........

87,900,025

—

—

87,900,025

Construction

Materials

..................

123,553,249

—

—

123,553,249

Consumer

Staples

Distribution

&

Retail

......

30,083,555

—

—

30,083,555

Electric

Utilities

........................

111,448,872

—

—

111,448,872

Electrical

Equipment

....................

173,711,646

—

—

173,711,646

Electronic

Equipment,

Instruments

&

Components

........................

449,274,179

—

—

449,274,179

Entertainment

.........................

34,079,723

—

—

34,079,723

Financial

Services

......................

665,198,574

53,707,685

—

718,906,259

Food

Products

........................

48,038,425

—

—

48,038,425

Ground

Transportation

..................

525,790,721

—

—

525,790,721

Health

Care

Equipment

&

Supplies

.........

646,027,638

—

—

646,027,638

Health

Care

Providers

&

Services

..........

152,933,589

—

—

152,933,589

Health

Care

Technology

.................

53,245,510

—

—

53,245,510

Hotels,

Restaurants

&

Leisure

.............

213,274,931

—

—

213,274,931

Industrial

REITs

.......................

37,904,538

—

—

37,904,538

Interactive

Media

&

Services

..............

585,806,722

—

—

585,806,722

IT

Services

...........................

79,599,241

—

28,524,759

108,124,000

Life

Sciences

Tools

&

Services

............

858,868,804

—

—

858,868,804

Machinery

............................

577,272,686

—

—

577,272,686

Media

...............................

33,741,764

—

—

33,741,764

Personal

Care

Products

.................

25,759,966

—

—

25,759,966

Pharmaceuticals

.......................

700,544,959

—

—

700,544,959

Professional

Services

...................

113,871,291

—

—

113,871,291

Semiconductors

&

Semiconductor

Equipment

.

1,398,585,979

—

—

1,398,585,979

Software

.............................

2,772,962,200

—

20,140,744

2,793,102,944

Specialized

REITs

......................

68,858,595

—

—

68,858,595

Technology

Hardware,

Storage

&

Peripherals

.

727,298,881

—

—

727,298,881

Textiles,

Apparel

&

Luxury

Goods

..........

168,055,592

—

—

168,055,592

Trading

Companies

&

Distributors

..........

142,354,302

—

—

142,354,302

Water

Utilities

.........................

71,817,314

—

—

71,817,314

Convertible

Preferred

Stocks

................

—

—

76,746,923

76,746,923

Preferred

Stocks

.........................

—

96,116,794

—

96,116,794

Short

Term

Investments

...................

69,954,846

—

—

69,954,846

Total

Investments

in

Securities

...........

$15,332,892,732

$149,824,479

d

$125,412,426

$15,608,129,637

Franklin

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

879,478,500

—

—

879,478,500

Air

Freight

&

Logistics

...................

155,870,000

—

—

155,870,000

Banks

...............................

1,934,075,000

—

—

1,934,075,000

Beverages

...........................

281,400,000

—

—

281,400,000

Biotechnology

.........................

298,120,000

—

—

298,120,000

Capital

Markets

........................

863,718,100

—

—

863,718,100

Chemicals

...........................

—

226,314,018

—

226,314,018

Communications

Equipment

..............

349,440,000

—

—

349,440,000

Consumer

Staples

Distribution

&

Retail

......

187,969,000

—

—

187,969,000

Diversified

Telecommunication

Services

.....

162,050,000

—

—

162,050,000

13.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

153

franklintempleton.com

Annual

Report

Level

1

Level

2

Level

3

Total

Franklin

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Electric

Utilities

........................

$

1,510,379,643

$

—

$

—

$

1,510,379,643

Health

Care

Providers

&

Services

..........

69,820,000

—

—

69,820,000

Household

Products

....................

401,115,000

—

—

401,115,000

Industrial

Conglomerates

................

246,579,313

—

—

246,579,313

Insurance

............................

220,185,000

—

—

220,185,000

IT

Services

...........................

280,600,000

—

—

280,600,000

Media

...............................

221,700,000

—

—

221,700,000

Metals

&

Mining

.......................

459,432,766

—

—

459,432,766

Multi-Utilities

..........................

515,755,000

—

—

515,755,000

Oil,

Gas

&

Consumable

Fuels

.............

1,316,466,862

—

—

1,316,466,862

Pharmaceuticals

.......................

1,201,811,070

48,022,143

—

1,249,833,213

Semiconductors

&

Semiconductor

Equipment

.

801,390,000

—

—

801,390,000

Tobacco

.............................

277,740,000

—

—

277,740,000

Management

Investment

Companies

.........

94,020,602

—

—

94,020,602

Equity-Linked

Securities

...................

—

11,942,773,789

—

11,942,773,789

Convertible

Preferred

Stocks

................

24,592,000

—

—

24,592,000

Preferred

Stocks

.........................

8,880,000

—

—

8,880,000

Convertible

Bonds

.......................

—

24,093,750

—

24,093,750

Corporate

Bonds

........................

—

33,236,375,156

—

33,236,375,156

Index-Linked

Notes

.......................

—

25,602,656

—

25,602,656

Senior

Floating

Rate

Interests

...............

—

353,605,365

—

353,605,365

U.S.

Government

and

Agency

Securities

.......

—

9,470,322,270

—

9,470,322,270

Asset-Backed

Securities

...................

—

116,574,134

—

116,574,134

Mortgage-Backed

Securities

................

—

23,235,952

—

23,235,952

Short

Term

Investments

...................

645,794,493

—

—

645,794,493

Total

Investments

in

Securities

...........

$13,408,382,349

$55,466,919,233

e

$—

$68,875,301,582

Liabilities:

Other

Financial

Instruments:

Options

written

..........................

$

87,227,000

$

—

$

—

$

87,227,000

Futures

contracts

........................

165,417,574

—

—

165,417,574

Total

Other

Financial

Instruments

.........

$252,644,574

$—

$—

$252,644,574

Franklin

U.S.

Government

Securities

Fund

Assets:

Investments

in

Securities:

c

U.S.

Government

and

Agency

Securities

.......

—

14,763,945

—

14,763,945

Mortgage-Backed

Securities

................

—

2,425,077,021

—

2,425,077,021

Short

Term

Investments

...................

67,238,754

—

—

67,238,754

Total

Investments

in

Securities

...........

$67,238,754

$2,439,840,966

$—

$2,507,079,720

Franklin

Utilities

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Construction

&

Engineering

...............

82,236,000

—

—

82,236,000

Electric

Utilities

........................

3,159,980,500

—

—

3,159,980,500

Gas

Utilities

..........................

45,264,000

—

—

45,264,000

Independent

Power

and

Renewable

Electricity

Producers

..........................

194,400,723

—

—

194,400,723

Multi-Utilities

..........................

1,503,356,000

166,220,902

—

1,669,576,902

Oil,

Gas

&

Consumable

Fuels

.............

242,718,000

—

—

242,718,000

Water

Utilities

.........................

51,495,000

23,108,129

—

74,603,129

Short

Term

Investments

...................

20,399,531

—

—

20,399,531

Total

Investments

in

Securities

...........

$5,299,849,754

$189,329,031

f

$—

$5,489,178,785

13.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

154

franklintempleton.com

Annual

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 year.

14.

New

Accounting

Pronouncements

In

March

2020,

the 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

and

December

2022,

the

FASB

issued

ASU

No.

2021-01

and

ASU

No.

2022-06,

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

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,

2024.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

15.

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,

except

for

the

following:

At

a

meeting

held

on

June

30,

2023,

shareholders

of

the

Franklin

Focused

Growth

Fund

(the

“Fund”)

approved

the

reorganization

of

the

Fund

into

the

Franklin

Focused

Growth

ETF,

a

newly-organized

series

of

Franklin

Templeton

ETF

Trust

(the

“Reorganization”).

The

Reorganization

occurred

as

of

the

close

of

business

on

November

3,

2023.

Effective

as

of

the

close

of

business

on

November

3,

2023,

the

Fund

ceased

operations

in

connection

with

the

consummation

of

the

Reorganization.

Abbreviations

a

Includes

financial

instruments

determined

to

have

no

value.

b

Includes

foreign

securities

valued

at

$443,815,364,

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

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

d

Includes

foreign

securities

valued

at

$149,824,479,

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

Includes

foreign

securities

valued

at

$274,336,161,

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.

f

Includes

foreign

securities

valued

at

$189,329,031,

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

CAD

Canadian

Dollar

GBP

British

Pound

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

CME

Chicago

Mercantile

Exchange

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

LIBOR

London

Interbank

Offered

Rate

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

13.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Report

of

Independent

Registered

Public

Accounting

Firm

155

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Custodian

Funds

and

Franklin

Templeton

ETF

Trust

and

Shareholders

of

Franklin

DynaTech

Fund,

Franklin

Focused

Growth

ETF,

Franklin

Growth

Fund,

Franklin

Income

Fund,

Franklin

U.S.

Government

Securities

Fund,

and

Franklin

Utilities

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Franklin

DynaTech

Fund,

Franklin

Focused

Growth

Fund,

Franklin

Growth

Fund,

Franklin

Income

Fund,

Franklin

U.S.

Government

Securities

Fund,

and

Franklin

Utilities

Fund

(constituting

Franklin

Custodian

Funds,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

September

30,

2023,

the

related

statements

of

operations

for

the

year

ended

September

30,

2023,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

September

30,

2023,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

September

30,

2023,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

September

30,

2023

and

each

of

the

financial

highlights

for

each

of

the

periods

indicated

therein

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

September

30,

2023

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

PricewaterhouseCoopers

LLP

San

Francisco,

California

November

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Custodian

Funds

Tax

Information

(unaudited)

156

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Funds

below

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

September

30,

2023:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

—

—

$1,506,697,314

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$64,689,418

$360,278

$121,344,192

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$79,350,535

$425,998

$142,918,752

Pursuant

to:

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

—

—

$107,663,288

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$438,464,364

—

$186,720,891

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$535,358,998

—

$202,614,632

Qualified

Net

Interest

Income

(QII)

§871(k)(1)(C)

$2,359,693,978

$83,156,481

—

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

—

—

$348,019

Section

163(j)

Interest

Dividends

Earned

§163(j)

$2,401,003,372

$83,157,241

$625,927

Interest

Earned

from

Federal

Obligations

Note

(1)

$322,818,350

$688,750

—

157

franklintempleton.com

Annual

Report

Franklin

Custodian

Funds

FRANKLIN

FOCUSED

GROWTH

FUND

(a

series

of

Franklin

Custodian

Funds)

Special

Shareholder

Meeting

June

30,

2023

(unaudited)

A

Special

Meeting

of

Shareholders

of

Franklin

Focused

Growth

Fund,

a

series

of

Franklin

Custodian

Funds,

was

held

on

June

30,

2023.

The

purpose

of

the

meeting

was

to

approve

the

Agreement

and

Plan

of

Reorganization

providing

for

the

reorganization

of

Franklin

Focused

Growth

Fund,

a

series

of

Franklin

Custodian

Funds,

with

and

into

Franklin

Focused

Growth

ETF,

a

series

of

Franklin

Templeton

ETF

Trust.

At

the

meeting

the

proposal

was

passed.

No

other

business

was

transacted

at

the

meeting

with

respect

to

the

Fund.

The

results

of

the

voting

at

the

meeting

are

as

follows:

To

approve

the

Agreement

and

Plan

of

Reorganization

providing

for

the

reorganization

of

Franklin

Focused

Growth

Fund,

a

series

of

Franklin

Custodian

Funds,

with

and

into

Franklin

Focused

Growth

ETF,

a

series

of

Franklin

Templeton

ETF

Trust.

For

%

Voted

FOR

%

FOR

of

Outstanding

Shares

1,596,093

85.72%

44.33%

Against

%

Voted

Against

%

Against

of

Outstanding

Shares

41,448

2.23%

1.15%

Abstain

%

Voted

Abstain

%

Abstain

of

Outstanding

Shares

224,361

12.05%

6.23%

Franklin

Custodian

Funds

Board

Members

and

Officers

158

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1976

119

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

119

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

119

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Custodian

Funds

159

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

119

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

119

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

The

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

119

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Custodian

Funds

160

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

110

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016)

and

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Gregory

E.

Johnson

2

(1961)

Chairman

of

the

Board,

Vice

President

and

Trustee

Chairman

of

the

Board

and

Vice

President

since

January

2023

and

Trustee

since

2013

129

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

Rupert

H.

Johnson,

Jr.

3

(1940)

Trustee

Since

1983

119

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Ted

P.

Becker

(1951)

Chief

Compliance

Officer

Since

June

2023

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Global

Compliance

of

Franklin

Templeton

(since

2020);

Chief

Compliance

Officer

of

Legg

Mason

Partners

Fund

Advisor,

LLC

(since

2006);

Chief

Compliance

Officer

of

certain

funds

associated

with

Legg

Mason

&

Co.

or

its

affiliates

(since

2006);

formerly

,

Director

of

Global

Compliance

at

Legg

Mason

(2006

to

2020);

Managing

Director

of

Compliance

of

Legg

Mason

&

Co.

(2005

to

2020).

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Independent

Board

Members

(continued)

Franklin

Custodian

Funds

161

franklintempleton.com

Annual

Report

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

1.

We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

2.

Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

3.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

a

major

shareholder

of

Resources,

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Susan

Kerr

(1949)

Vice

President

–

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

June

2023

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Custodian

Funds

Shareholder

Information

162

franklintempleton.com

Annual

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

April

18,

2023

(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

prior

to

and

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

the

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.

The

Board

acknowledged

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

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

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

Franklin

Custodian

Funds

Shareholder

Information

163

franklintempleton.com

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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

technological

innovation

and

advancement

and

investments

to

promote

alternative

investing.

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

December

31,

2022.

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

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-

and

three-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

discussed

the

Fund’s

performance

with

management

and

management

explained

that,

during

the

one-year

period,

there

was

a

broad

sell-off

of

growth

equities

which

adversely

impacted

the

Fund’s

short-

and

long-term

performance.

Management

further

explained

that

the

Fund’s

one-year

below

median

performance

was

due,

in

part,

to

the

Fund’s

overweight

positions

in

the

information

technology

and

healthcare

sectors,

which

management

believed

would

offer

more

growth

in

the

long

term.

The

Board

noted

management’s

conviction

in

the

Fund’s

investment

strategies.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

while

management’s

efforts

continue

to

be

closely

monitored.

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

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that

it

had

approved,

subject

to

shareholder

approval,

the

reorganization

of

the

Fund

into

the

Franklin

Focused

Growth

ETF,

which

is

expected

to

occur

in

the

fourth

quarter

of

2023.

After

consideration

of

the

above,

the

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period.

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-,

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

Income

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

flexible

portfolio

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

and

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

were

above

the

medians

of

its

Performance

Universe.

The

Board

further

noted

management’s

view

regarding

the

income-related

attributes

of

the

Fund

(e.g.,

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

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-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

management’s

view

regarding

the

income-related

attributes

of

the

Fund

(e.g.,

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Custodian

Funds

Shareholder

Information

164

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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

three-year

period

was

slightly

below

the

median

of

its

Performance

Universe,

but

for

the

one-,

five-

and

10-

year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

further

noted

management’s

view

regarding

the

income-related

attributes

of

the

Fund

(e.g.,

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

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

and

for

Class

A

shares

and

Class

M

shares

for

the

other

funds

in

the

Fund’s

expense

group.

The

actual

total

expense

ratio

was

shown

for

Class

A1

shares

for

the

Franklin

U.S.

Government

Securities

Fund

and

Franklin

Utilities

Fund

and

for

Class

A

shares

for

the

other

funds

in

their

expense

groups.

The

actual

total

expense

ratio

was

shown

for

Class

A

shares

for

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

I

shares,

Class

N

shares,

Class

P

shares,

Class

Z

shares,

Class

Y

shares,

Administrative

Class

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

the

Franklin

DynaTech

Fund

included

the

Fund

and

14

other

multi-cap

growth

funds.

The

Expense

Group

for

the

Franklin

Growth

Fund

included

the

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

16

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

equal

to

the

median

of

its

Expense

Group.

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

two

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

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

Franklin

Custodian

Funds

Shareholder

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165

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investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2022,

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

further

noted

that

the

Franklin

U.S.

Government

Securities

Fund

experienced

a

decline

in

assets

and

would

not

be

expected

to

experience

additional

economies

of

scale

in

the

foreseeable

future.

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.

Liquidity

Risk

Management

Program

Each

of

the

Franklin

Templeton

and

Legg

Mason

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

Franklin

Custodian

Funds

Shareholder

Information

166

franklintempleton.com

Annual

Report

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2023,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2022.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

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.

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

A

11/23

©

2023

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

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

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.

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $441,653 for the fiscal year ended September 30, 2023 and $460,292 for the fiscal year ended September 30, 2022.

(b)      Audit-Related Fees

The aggregate fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4 were $9,000 for the fiscal year ended September 30, 2023 and $9,000 for the fiscal year ended September 30, 2022. The services for which these fees were paid included attestation services.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  

(c)      Tax Fees

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning
were $140,000 for the fiscal year ended September 30, 2023, and $0 for the fiscal year ended September 30, 2022. The services for which these fees were paid included global access to tax platform International Tax View.

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended September 30, 2023 and $43,364 for the fiscal year ended September 30, 2022. The services for which these fees were paid included professional fees in connection with SOC 1 Reports.

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $25,699 for the fiscal year ended September 30, 2023 and $305,142 for the fiscal year ended September 30, 2022. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with a license for accounting and business knowledge platform Viewpoint, fees in connection with a license for employee development tool ProEdge,
professional fees relating to security counts and professional fees in connection with SOC 1 Reports.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

      (i)   pre-approval of all audit and audit related services;

      (ii)  pre-approval of all non-audit related services to be provided to the Fund by the auditors;

      (iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

      (iv)  establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $174,699 for the fiscal year ended September 30, 2023 and $357,506 for the fiscal year ended September 30, 2022.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) N/A

(j) 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

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(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  November 30, 2023

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  November 30, 2023

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  November 30, 2023