0001868420-24-000075.txt : 20240529 0001868420-24-000075.hdr.sgml : 20240529 20240529081820 ACCESSION NUMBER: 0001868420-24-000075 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20240331 FILED AS OF DATE: 20240529 DATE AS OF CHANGE: 20240529 EFFECTIVENESS DATE: 20240529 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Franklin Custodian Funds CENTRAL INDEX KEY: 0000038721 ORGANIZATION NAME: IRS NUMBER: 132573775 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-00537 FILM NUMBER: 24994083 BUSINESS ADDRESS: STREET 1: ONE FRANKLIN PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94403-1906 BUSINESS PHONE: 650-312-2000 MAIL ADDRESS: STREET 1: ONE FRANKLIN PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94403-1906 FORMER COMPANY: FORMER CONFORMED NAME: FRANKLIN CUSTODIAN FUNDS DATE OF NAME CHANGE: 20080128 FORMER COMPANY: FORMER CONFORMED NAME: FRANKLIN CUSTODIAN FUNDS INC DATE OF NAME CHANGE: 19920703 0000038721 S000006754 FRANKLIN DYNATECH FUND C000018321 Class A FKDNX C000018323 Class C FDYNX C000066417 Advisor Class FDYZX C000068977 Class R FDNRX C000128785 Class R6 FDTRX 0000038721 S000006755 FRANKLIN GROWTH FUND C000018324 Class A FKGRX C000018326 Class C FRGSX C000018327 Advisor Class FCGAX C000018328 Class R FGSRX C000128786 Class R6 FIFRX 0000038721 S000006756 FRANKLIN INCOME FUND C000018329 Class A1 FKINX C000018332 Class C FCISX C000018333 Advisor Class FRIAX C000018334 Class R FISRX C000128787 Class R6 FNCFX C000199719 Class A FKIQX 0000038721 S000006757 FRANKLIN U.S. GOVERNMENT SECURITIES FUND C000018335 Class A1 FKUSX C000018337 Class C FRUGX C000018338 Advisor Class FUSAX C000018339 Class R FUSRX C000128788 Class R6 FGORX C000199720 Class A FKFSX 0000038721 S000006758 FRANKLIN UTILITIES FUND C000018340 Class A1 FKUTX C000018342 Class C FRUSX C000018343 Advisor Class FRUAX C000018344 Class R FRURX C000128789 Class R6 FUFRX C000199721 Class A FKUQX N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number 811-00537
 
Franklin Custodian Funds
(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA  94403-1906

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

(Name and address of agent for service)
 
Registrant's telephone number, including area code: 650 312-2000
 
Date of fiscal year end: 9/30
 
Date of reporting period: 3/31/24
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report.
Not Applicable
.
 
 
Semiannual
Report
Franklin
Custodian
Funds
March
31,
2024
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
Franklin
DynaTech
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
Semiannual
Report
1
Contents
Franklin
DynaTech
Fund
2
Franklin
Growth
Fund
7
Franklin
Income
Fund
12
Franklin
U.S.
Government
Securities
Fund
17
Franklin
Utilities
Fund
21
Financial
Highlights
and
Schedules
of
Investments
25
Financial
Statements
89
Notes
to
Financial
Statements
98
Shareholder
Information
122
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Semiannual
Report
Franklin
DynaTech
Fund
This
semiannual
report
for
Franklin
DynaTech
Fund
covers
the
period
ended
March
31,
2024.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation
by
investing
primarily
in
equity
securities
of
companies
that
emphasize
innovation
and
new
technologies,
have
superior
management
and
that
benefit
from
new
industry
conditions
in
the
dynamically
changing
global
economy.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+31.70%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Russell
1000
®
Growth
Index,
which
is
market
capitalization
weighted
and
measures
performance
of
those
Russell
1000
®
Index
companies
with
relatively
higher
price-
to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
cumulative
total
return
of
+27.19%.
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
+23.48%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
4
.
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.
Portfolio
Composition
3/31/24
%
of
Total
Net
Assets
Software
29.8%
Semiconductors
&
Semiconductor
Equipment
24.9%
Broadline
Retail
8.6%
Interactive
Media
&
Services
8.0%
Financial
Services
4.5%
Health
Care
Equipment
&
Supplies
3.5%
Life
Sciences
Tools
&
Services
3.2%
IT
Services
3.1%
Pharmaceuticals
2.3%
Capital
Markets
1.8%
Technology
Hardware,
Storage
&
Peripherals
1.6%
Automobiles
1.4%
Aerospace
&
Defense
1.1%
Ground
Transportation
1.1%
Other
*
5.0%
Short-Term
Investments
&
Other
Net
Assets
0.1%
*
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
3/31/24
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
NVIDIA
Corp.
11.8%
Semiconductors
&
Semiconductor
Equipment,
United
States
Microsoft
Corp.
7.7%
Software,
United
States
Amazon.com,
Inc.
7.4%
Broadline
Retail,
United
States
Alphabet,
Inc.
4.0%
Interactive
Media
&
Services,
United
States
Meta
Platforms,
Inc.
4.0%
Interactive
Media
&
Services,
United
States
ServiceNow,
Inc.
3.6%
Software,
United
States
Mastercard,
Inc.
3.3%
Financial
Services,
United
States
ASML
Holding
NV
3.1%
Semiconductors
&
Semiconductor
Equipment,
Netherlands
Cadence
Design
Systems,
Inc.
2.9%
Software,
United
States
Synopsys,
Inc.
2.9%
Software,
United
States
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.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
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
30
.
Franklin
DynaTech
Fund
3
franklintempleton.com
Semiannual
Report
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
Performance
Summary
as
of
March
31,
2024
Franklin
DynaTech
Fund
4
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
A
4
6-Month
+31.70%
+24.45%
1-Year
+40.78%
+33.03%
5-Year
+96.33%
+13.16%
10-Year
+308.44%
+14.46%
Advisor
6-Month
+31.86%
+31.86%
1-Year
+41.14%
+41.14%
5-Year
+98.81%
+14.73%
10-Year
+318.79%
+15.40%
See
page
5
for
Performance
Summary
footnotes.
Franklin
DynaTech
Fund
Performance
Summary
5
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
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.
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.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Total
Annual
Operating
Expenses
5
Share
Class
A
0.83%
Advisor
0.58%
Your
Fund’s
Expenses
Franklin
DynaTech
Fund
6
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
183/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/23
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,317.00
$4.64
$1,020.99
$4.05
0.80%
C
$1,000
$1,311.90
$8.97
$1,017.24
$7.82
1.55%
R
$1,000
$1,315.20
$6.08
$1,019.74
$5.31
1.05%
R6
$1,000
$1,319.20
$2.64
$1,022.72
$2.30
0.46%
Advisor
$1,000
$1,318.60
$3.20
$1,022.24
$2.79
0.55%
7
franklintempleton.com
Semiannual
Report
Franklin
Growth
Fund
This
semiannual
report
for
Franklin
Growth
Fund
covers
the
period
ended
March
31,
2024.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation
by
investing
substantially
in
equity
securities
of
companies
that
are
leaders
in
their
industries.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+25.61%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
which
is
a
broad
measure
of
U.S.
stock
performance,
posted
a
+23.48%
cumulative
total
return.
1
The
Fund’s
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
+27.19%.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
9
.
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.
*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.
Portfolio
Composition
3/31/24
%
of
Total
Net
Assets
Software
18.9%
Semiconductors
&
Semiconductor
Equipment
11.6%
Life
Sciences
Tools
&
Services
6.4%
Broadline
Retail
4.3%
Capital
Markets
4.3%
Financial
Services
4.2%
Health
Care
Equipment
&
Supplies
4.0%
Aerospace
&
Defense
3.9%
Pharmaceuticals
3.9%
Machinery
3.8%
Interactive
Media
&
Services
3.6%
Ground
Transportation
3.4%
Technology
Hardware,
Storage
&
Peripherals
3.0%
Chemicals
3.0%
Other
*
20.9%
Short-Term
Investments
&
Other
Net
Assets
0.8%
Top
10
Holdings
3/31/24
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
Microsoft
Corp.
6.2%
Software,
United
States
NVIDIA
Corp.
5.3%
Semiconductors
&
Semiconductor
Equipment,
United
States
Amazon.com,
Inc.
4.3%
Broadline
Retail,
United
States
Alphabet,
Inc.
3.6%
Interactive
Media
&
Services,
United
States
Eli
Lilly
&
Co.
3.1%
Pharmaceuticals,
United
States
Apple,
Inc.
3.0%
Technology
Hardware,
Storage
&
Peripherals,
United
States
ServiceNow,
Inc.
2.6%
Software,
United
States
Mastercard,
Inc.
2.5%
Financial
Services,
United
States
Intuit,
Inc.
2.4%
Software,
United
States
ASML
Holding
NV
2.0%
Semiconductors
&
Semiconductor
Equipment,
Netherlands
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.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
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
39
.
Franklin
Growth
Fund
8
franklintempleton.com
Semiannual
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
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
March
31,
2024
Franklin
Growth
Fund
9
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
A
4
6-Month
+25.61%
+18.70%
1-Year
+29.58%
+22.46%
5-Year
+93.46%
+12.83%
10-Year
+238.89%
+12.34%
Advisor
6-Month
+25.77%
+25.77%
1-Year
+29.91%
+29.91%
5-Year
+95.92%
+14.40%
10-Year
+247.48%
+13.26%
See
page
10
for
Performance
Summary
footnotes.
Franklin
Growth
Fund
Performance
Summary
10
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
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.
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.
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.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Distributions
(10/1/23–3/31/24)
Share
Class
Net
Investment
Income
Long-Term
Capital
Gain
Total
A
$0.2219
$7.4541
$7.6760
C
$7.4541
$7.4541
R
$7.4541
$7.4541
R6
$0.6079
$7.4541
$8.0620
Advisor
$0.5157
$7.4541
$7.9698
Total
Annual
Operating
Expenses
5
Share
Class
A
0.80%
Advisor
0.55%
Your
Fund’s
Expenses
Franklin
Growth
Fund
11
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
183/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/23
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,256.10
$4.44
$1,021.07
$3.97
0.79%
C
$1,000
$1,251.40
$8.65
$1,017.32
$7.75
1.54%
R
$1,000
$1,254.40
$5.84
$1,019.82
$5.23
1.04%
R6
$1,000
$1,258.00
$2.63
$1,022.67
$2.35
0.47%
Advisor
$1,000
$1,257.70
$3.03
$1,022.32
$2.71
0.54%
12
franklintempleton.com
Semiannual
Report
Franklin
Income
Fund
This
semiannual
report
for
Franklin
Income
Fund
covers
the
period
ended
March
31,
2024.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
maximize
income,
while
maintaining
prospects
for
capital
appreciation
by
investing,
under
normal
market
conditions,
in
a
diversified
portfolio
of
debt
and
equity
securities.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
cumulative
total
return
of
+9.94%
for
the
six
months
under
review.
In
comparison,
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
which
is
a
broad
measure
of
U.S.
stock
performance,
posted
a
+23.48%
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
Index,
which
is
a
combination
of
leading
stock
and
bond
indexes,
posted
a
+12.22%
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
+17.13%
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
+8.88%
cumulative
total
return
and
the
Bloomberg
U.S.
Aggregate
Index,
which
measures
the
performance
of
the
investment-grade,
U.S.
dollar
denominated,
fixed-rate
taxable
bond
market,
posted
a
+5.99%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
14
.
The
Fund
was
able
to
successfully
meet
its
monthly
distributions
under
its
managed
distribution
policy
without
the
return
of
capital
and
without
associated
impact
from
return
of
capital
on
the
Fund’s
net
asset
value
per
share.
The
policy
had
no
material
impact
on
the
Fund’s
investment
strategy.
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.
Portfolio
Composition
3/31/24
%
of
Total
Net
Assets
Corporate
Bonds
48.0%
Common
Stocks
19.7%
Equity-Linked
Securities
17.4%
U.S.
Government
and
Agency
Securities
11.5%
Other
*
1.6%
Short-Term
Investments
&
Other
Net
Assets
1.8%
*
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
3/31/24
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
U.S.
Treasury
Notes
8.5%
Financial
Services
,
United
States
CHS/Community
Health
Systems,
Inc.
3.1%
Health
Care
Providers
&
Services
,
United
States
U.S.
Treasury
Bonds
3.0%
Financial
Services
,
United
States
Tenet
Healthcare
Corp.
1.9%
Health
Care
Providers
&
Services
,
United
States
Boeing
Co.
(The)
1.0%
Aerospace
&
Defense
,
United
States
Top
Five
Equity
Holdings
3/31/24
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Chevron
Corp.
1.6%
Oil,
Gas
&
Consumable
Fuels,
United
States
Exxon
Mobil
Corp.
1.6%
Oil,
Gas
&
Consumable
Fuels,
United
States
Texas
Instruments,
Inc.
1.5%
Semiconductors
&
Semiconductor
Equipment,
United
States
Bank
of
America
Corp.
1.4%
Banks,
United
States
NextEra
Energy,
Inc.
1.2%
Electric
Utilities,
United
States
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.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
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
50
.
Franklin
Income
Fund
13
franklintempleton.com
Semiannual
Report
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
Performance
Summary
as
of
March
31,
2024
Franklin
Income
Fund
14
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
A
4,5
6-Month
+9.94%
+5.81%
1-Year
+7.61%
+3.57%
5-Year
+34.19%
+5.25%
10-Year
+61.32%
+4.50%
Advisor
6-Month
+9.64%
+9.64%
1-Year
+7.90%
+7.90%
5-Year
+35.53%
+6.27%
10-Year
+65.12%
+5.14%
30-Day
Standardized
Yield
7
Share
Class
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
A
5.33%
4.04%
4.03%
Advisor
5.79%
4.45%
4.44%
See
page
15
for
Performance
Summary
footnotes.
Franklin
Income
Fund
Performance
Summary
15
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
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.
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
01/31/2025
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
calculated
by
annualizing
the
most
recent
distribution
amount
paid,
divided
by
the
NAV
as
of
the
date
indicated.
The
Distribution
Rate
calculation
includes
income
and
return
of
capital,
and
includes
a
prorated
special
distribution
in
the
month
it
is
paid.
The
Distribution
Rate
is
not
guaranteed,
subject
to
change,
and
is
not
a
quotation
of
fund
performance.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Net
Asset
Value
Share
Class
(Symbol)
3/31/24
9/30/23
Change
A
(FKIQX)
$2.34
$2.19
+$0.15
A1
(FKINX)
$2.35
$2.20
+$0.15
C
(FCISX)
$2.39
$2.24
+$0.15
R
(FISRX)
$2.29
$2.15
+$0.14
R6
(FNCFX)
$2.34
$2.19
+$0.15
Advisor
(FRIAX)
$2.32
$2.18
+$0.14
Distributions
(10/1/23–3/31/24)
Share
Class
Net
Investment
Income
A
$0.0639
A1
$0.0651
C
$0.0591
R
$0.0609
R6
$0.0669
Advisor
$0.0663
Total
Annual
Operating
Expenses
8
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.71%
0.72%
Advisor
0.46%
0.47%
Your
Fund’s
Expenses
Franklin
Income
Fund
16
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
183/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/23
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,099.40
$3.71
$1,021.47
$3.57
0.71%
A1
$1,000
$1,099.60
$3.18
$1,021.97
$3.06
0.61%
C
$1,000
$1,094.90
$5.79
$1,019.47
$5.58
1.11%
R
$1,000
$1,095.10
$5.01
$1,020.22
$4.83
0.96%
R6
$1,000
$1,100.90
$2.12
$1,022.99
$2.04
0.40%
Advisor
$1,000
$1,096.40
$2.39
$1,022.72
$2.31
0.46%
17
franklintempleton.com
Semiannual
Report
Franklin
U.S.
Government
Securities
Fund
This
semiannual
report
for
Franklin
U.S.
Government
Securities
Fund
covers
the
period
ended
March
31,
2024.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
income
by
investing
at
least
80%
of
its
net
assets
in
U.S.
government
securities.
The
Fund
presently
invests
substantially
all
of
its
assets
in
Government
National
Mortgage
Association
obligations
(Ginnie
Maes).
Since
1983,
the
Fund
has
invested
substantially
in
Ginnie
Mae
securities,
which
carry
a
guarantee
backed
by
the
full
faith
and
credit
of
the
U.S.
government
as
to
the
timely
payment
of
interest
and
principal.
1
Issued
by
the
Government
National
Mortgage
Association
(GNMA),
Ginnie
Maes
have
been
among
the
highest
yielding
U.S.
government
obligations
available.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+5.32%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Bloomberg
U.S.
Government
-
Intermediate
Index,
the
intermediate
component
of
the
Bloomberg
U.S.
Government
Index,
posted
a
+3.61%
cumulative
total
return.
2
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
18
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
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
Portfolio
Composition
3/31/24
%
of
Total
Net
Assets
Mortgage-Backed
Securities
98.1%
Other
*
0.6%
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.
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.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
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
.
Performance
Summary
as
of
March
31,
2024
Franklin
U.S.
Government
Securities
Fund
18
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
A
4,5
6-Month
+5.32%
+1.37%
1-Year
+0.73%
-3.05%
5-Year
-3.54%
-1.47%
10-Year
+3.88%
-0.00%
Advisor
6-Month
+5.43%
+5.43%
1-Year
+0.98%
+0.98%
5-Year
-2.35%
-0.47%
10-Year
+5.95%
+0.58%
Share
Class
Distribution
Rate
6
30-Day
Standardized
Yield
7
A
3.14%
2.63%
Advisor
3.51%
2.99%
See
page
19
for
Performance
Summary
footnotes.
Franklin
U.S.
Government
Securities
Fund
Performance
Summary
19
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
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.
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
01/31/2025
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
calculated
by
annualizing
the
most
recent
distribution
amount
paid,
divided
by
the
NAV
as
of
the
date
indicated.
The
Distribution
Rate
calculation
includes
income
and
return
of
capital,
and
includes
a
prorated
special
distribution
in
the
month
it
is
paid.
The
Distribution
Rate
is
not
guaranteed,
subject
to
change,
and
is
not
a
quotation
of
fund
performance.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Distributions
(10/1/23–3/31/24)
Share
Class
Net
Investment
Income
A
$0.0772
A1
$0.0798
C
$0.0670
R
$0.0708
R6
$0.0860
Advisor
$0.0834
Total
Annual
Operating
Expenses
8
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.86%
0.87%
Advisor
0.60%
0.61%
Your
Fund’s
Expenses
Franklin
U.S.
Government
Securities
Fund
20
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration):
Divide
your
account
value
by
$1,000
(if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
183/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/23
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,053.20
$4.41
$1,020.70
$4.34
0.86%
A1
$1,000
$1,053.80
$3.87
$1,021.23
$3.81
0.75%
C
$1,000
$1,051.50
$6.46
$1,018.71
$6.35
1.26%
R
$1,000
$1,051.90
$5.69
$1,019.45
$5.60
1.11%
R6
$1,000
$1,056.90
$2.62
$1,022.45
$2.57
0.51%
Advisor
$1,000
$1,054.30
$3.13
$1,021.95
$3.08
0.61%
21
franklintempleton.com
Semiannual
Report
Franklin
Utilities
Fund
This
semiannual
report
for
Franklin
Utilities
Fund
covers
the
period
ended
March
31,
2024.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
both
capital
appreciation
and
current
income
by
investing
at
least
80%
of
its
net
assets
in
the
securities
of
public
utility
companies.
These
are
companies
that
provide
electricity,
natural
gas,
water,
and
communications
services
to
the
public
and
companies
that
provide
services
to
public
utilities
companies.
The
Fund
concentrates
(invests
more
than
25%
of
its
total
assets)
in
companies
operating
in
the
utilities
industry.
The
Fund
invests
primarily
in
equity
securities,
which
consist
mainly
of
common
stocks.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+13.68%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
S&P
500
®
Utilities
Index,
which
measures
the
performance
of
all
utilities
stocks
in
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
posted
a
+13.52%
cumulative
total
return,
and
the
S&P
500
®
Index,
which
is
a
broad
measure
of
U.S.
stock
performance,
posted
a
+23.48%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
22
.
The
Fund
was
able
to
successfully
meet
its
monthly
distributions
under
its
managed
distribution
policy
without
the
return
of
capital
and
without
associated
impact
from
return
of
capital
on
the
Fund’s
net
asset
value
per
share.
The
policy
had
no
material
impact
on
the
Fund's
investment
strategy.
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
.
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
Portfolio
Composition
3/31/24
%
of
Total
Net
Assets
Electric
Utilities
57.9%
Multi-Utilities
28.2%
Independent
Power
and
Renewable
Electricity
Producers
6.3%
Oil,
Gas
&
Consumable
Fuels
4.0%
Construction
&
Engineering
1.2%
Other
*
1.8%
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
3/31/24
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
NextEra
Energy,
Inc.
10.2%
Electric
Utilities,
United
States
Southern
Co.
(The)
5.6%
Electric
Utilities,
United
States
Edison
International
5.0%
Electric
Utilities,
United
States
Vistra
Corp.
4.8%
Independent
Power
and
Renewable
Electricity
Producers,
United
States
Sempra
4.6%
Multi-Utilities,
United
States
Entergy
Corp.
4.5%
Electric
Utilities,
United
States
Duke
Energy
Corp.
4.1%
Electric
Utilities,
United
States
Evergy,
Inc.
3.9%
Electric
Utilities,
United
States
Exelon
Corp.
3.8%
Electric
Utilities,
United
States
PG&E
Corp.
3.5%
Electric
Utilities,
United
States
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.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
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
87
.
Performance
Summary
as
of
March
31,
2024
Franklin
Utilities
Fund
22
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
3/31/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class
:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
A
4,5
6-Month
+13.68%
+9.42%
1-Year
+1.66%
-2.16%
5-Year
+31.90%
+4.89%
10-Year
+111.69%
+7.38%
Advisor
6-Month
+13.83%
+13.83%
1-Year
+1.94%
+1.94%
5-Year
+33.58%
+5.96%
10-Year
+116.24%
+8.02%
Share
Class
Distribution
Rate
6
30-Day
Standardized
Yield
7
A
2.21%
2.65%
Advisor
2.50%
2.99%
See
page
23
for
Performance
Summary
footnotes.
Franklin
Utilities
Fund
Performance
Summary
23
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
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
calculated
by
annualizing
the
most
recent
distribution
amount
paid,
divided
by
the
NAV
as
of
the
date
indicated.
The
Distribution
Rate
calculation
includes
income
and
return
of
capital,
and
includes
a
prorated
special
distribution
in
the
month
it
is
paid.
The
Distribution
Rate
is
not
guaranteed,
subject
to
change,
and
is
not
a
quotation
of
fund
performance.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Net
Asset
Value
Share
Class
(Symbol)
3/31/24
9/30/23
Change
A
(FKUQX)
$20.13
$18.64
+$1.49
A1
(FKUTX)
$20.14
$18.65
+$1.49
C
(FRUSX)
$20.00
$18.53
+$1.47
R
(FRURX)
$20.04
$18.56
+$1.48
R6
(FUFRX)
$20.36
$18.84
+$1.52
Advisor
(FRUAX)
$20.36
$18.84
+$1.52
Distributions
(10/1/23–3/31/24)
Share
Class
Net
Investment
Income
Long-Term
Capital
Gain
Total
A
$0.2568
$0.7395
$0.9963
A1
$0.2662
$0.7395
$1.0057
C
$0.2196
$0.7395
$0.9591
R
$0.2335
$0.7395
$0.9730
R6
$0.2868
$0.7395
$1.0263
Advisor
$0.2802
$0.7395
$1.0197
Total
Annual
Operating
Expenses
8
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
Utilities
Fund
24
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
183/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
10/1/23
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
Ending
Account
Value
3/31/24
Expenses
Paid
During
Period
10/1/23–3/31/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,136.80
$4.36
$1,020.92
$4.13
0.82%
A1
$1,000
$1,137.30
$3.83
$1,021.42
$3.62
0.72%
C
$1,000
$1,134.40
$6.49
$1,018.92
$6.14
1.22%
R
$1,000
$1,135.50
$5.69
$1,019.67
$5.38
1.07%
R6
$1,000
$1,138.70
$2.64
$1,022.53
$2.50
0.49%
Advisor
$1,000
$1,138.30
$3.03
$1,022.17
$2.86
0.57%
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$116.42
$92.78
$157.23
$121.24
$82.84
$81.16
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.29)
(0.38)
(0.64)
(0.82)
(0.38)
(0.20)
Net
realized
and
unrealized
gains
(losses)
37.17
24.02
(61.59)
36.81
39.44
3.79
Total
from
investment
operations
........
36.88
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
period
..........
$153.30
$116.42
$92.78
$157.23
$121.24
$82.84
Total
return
c
.......................
31.70%
25.47%
(40.15)%
29.68%
47.47%
4.77%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.80%
0.83%
0.82%
0.79%
0.85%
0.86%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.80%
e
0.83%
e,f
0.82%
e,f
0.79%
e,f
0.84%
f
0.85%
f
Net
investment
(loss)
................
(0.43)%
(0.35)%
(0.50)%
(0.56)%
(0.39)%
(0.26)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$11,180,877
$8,669,145
$7,214,315
$12,129,483
$8,378,574
$4,504,434
Portfolio
turnover
rate
................
7.02%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$93.09
$74.75
$128.06
$99.49
$68.60
$68.07
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.63)
(0.95)
(1.29)
(1.55)
(0.91)
(0.66)
Net
realized
and
unrealized
gains
(losses)
29.67
19.29
(49.80)
30.12
32.46
3.10
Total
from
investment
operations
........
29.04
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
period
..........
$122.13
$93.09
$74.75
$128.06
$99.49
$68.60
Total
return
c
.......................
31.19%
24.55%
(40.60)%
28.72%
46.37%
3.97%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.55%
1.58%
1.57%
1.54%
1.60%
1.61%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.55%
e
1.58%
e,f
1.57%
e,f
1.54%
e,f
1.59%
f
1.60%
f
Net
investment
(loss)
................
(1.18)%
(1.10)%
(1.26)%
(1.31)%
(1.14)%
(1.01)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$941,940
$774,154
$715,976
$1,339,016
$1,095,702
$597,927
Portfolio
turnover
rate
................
7.02%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$111.57
$89.14
$151.52
$117.13
$80.26
$78.88
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.43)
(0.62)
(0.91)
(1.14)
(0.60)
(0.39)
Net
realized
and
unrealized
gains
(losses)
35.60
23.05
(59.25)
35.53
38.13
3.68
Total
from
investment
operations
........
35.17
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
period
..........
$146.74
$111.57
$89.14
$151.52
$117.13
$80.26
Total
return
c
.......................
31.52%
25.16%
(40.29)%
29.36%
47.09%
4.52%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.05%
1.08%
1.07%
1.04%
1.10%
1.11%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.05%
e
1.08%
e,f
1.07%
e,f
1.04%
e,f
1.09%
f
1.10%
f
Net
investment
(loss)
................
(0.68)%
(0.60)%
(0.75)%
(0.81)%
(0.63)%
(0.51)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$262,657
$212,068
$188,831
$311,646
$221,041
$123,721
Portfolio
turnover
rate
................
7.02%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$123.35
$97.95
$165.26
$127.01
$86.46
$84.31
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.06)
c
(0.18)
(0.36)
(0.05)
0.07
Net
realized
and
unrealized
gains
(losses)
39.42
25.40
(64.91)
38.61
41.26
3.99
Total
from
investment
operations
........
39.36
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
period
..........
$162.71
$123.35
$97.95
$165.26
$127.01
$86.46
Total
return
d
.......................
31.92%
25.92%
(39.92)%
30.12%
47.97%
5.15%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.46%
0.48%
0.46%
0.46%
0.50%
0.51%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.46%
f
0.47%
g
0.45%
g
0.46%
f,g
0.50%
f,g
0.50%
g
Net
investment
income
(loss)
..........
(0.08)%
—%
h
(0.13)%
(0.23)%
(0.05)%
0.09%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$9,019,658
$7,515,703
$6,322,021
$9,820,184
$5,817,028
$2,473,942
Portfolio
turnover
rate
................
7.02%
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
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$121.56
$96.64
$163.27
$125.58
$85.58
$83.56
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.12)
(0.11)
(0.34)
(0.48)
(0.15)
(0.01)
Net
realized
and
unrealized
gains
(losses)
38.84
25.03
(64.07)
38.17
40.81
3.94
Total
from
investment
operations
........
38.72
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
period
..........
$160.28
$121.56
$96.64
$163.27
$125.58
$85.58
Total
return
c
.......................
31.86%
25.79%
(39.99)%
30.01%
47.83%
5.04%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.55%
0.58%
0.57%
0.54%
0.60%
0.61%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.55%
e
0.58%
e,f
0.57%
e,f
0.54%
e,f
0.59%
f
0.60%
f
Net
investment
(loss)
................
(0.18)%
(0.10)%
(0.26)%
(0.32)%
(0.15)%
(0.01)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$3,122,729
$2,499,474
$2,280,138
$4,352,531
$2,884,489
$1,154,604
Portfolio
turnover
rate
................
7.02%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2024
Franklin
DynaTech
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
99.9%
Aerospace
&
Defense
1.1%
a
Axon
Enterprise,
Inc.
...................................
United
States
900,000
$
281,592,000
Automobile
Components
0.0%
a
Mobileye
Global,
Inc.
,
A
.................................
Israel
50,000
1,607,500
Automobiles
1.4%
a
Tesla,
Inc.
...........................................
United
States
2,000,000
351,580,000
Biotechnology
0.6%
a
Argenx
SE
..........................................
Netherlands
175,000
68,994,628
a
Ascendis
Pharma
A/S
,
ADR
.............................
Denmark
200,000
30,234,000
a
Krystal
Biotech,
Inc.
...................................
United
States
60,000
10,675,800
a
Natera,
Inc.
..........................................
United
States
400,000
36,584,000
a
Rocket
Pharmaceuticals,
Inc.
............................
United
States
100,000
2,694,000
149,182,428
Broadline
Retail
8.6%
a
Amazon.com,
Inc.
.....................................
United
States
10,000,000
1,803,800,000
a
MercadoLibre,
Inc.
....................................
Brazil
200,000
302,392,000
2,106,192,000
Capital
Markets
1.8%
Moody's
Corp.
........................................
United
States
100,000
39,303,000
MSCI,
Inc.
,
A
.........................................
United
States
250,000
140,112,500
Tradeweb
Markets,
Inc.
,
A
...............................
United
States
2,500,000
260,425,000
439,840,500
Communications
Equipment
0.2%
a
Arista
Networks,
Inc.
...................................
United
States
150,000
43,497,000
Construction
&
Engineering
0.8%
Quanta
Services,
Inc.
..................................
United
States
750,000
194,850,000
Diversified
Consumer
Services
0.2%
a
Duolingo,
Inc.
,
A
......................................
United
States
200,000
44,116,000
Electronic
Equipment,
Instruments
&
Components
0.6%
Amphenol
Corp.
,
A
....................................
United
States
500,000
57,675,000
Keyence
Corp.
.......................................
Japan
200,000
91,868,684
149,543,684
Energy
Equipment
&
Services
0.6%
Baker
Hughes
Co.
,
A
...................................
United
States
1,000,000
33,500,000
a
Oceaneering
International,
Inc.
...........................
United
States
1,000,000
23,400,000
Schlumberger
NV
.....................................
United
States
1,250,000
68,512,500
TechnipFMC
plc
......................................
United
Kingdom
1,250,000
31,387,500
156,800,000
Entertainment
0.1%
Nintendo
Co.
Ltd.
.....................................
Japan
350,000
18,948,411
Financial
Services
4.5%
Mastercard,
Inc.
,
A
....................................
United
States
1,700,000
818,669,000
Visa,
Inc.
,
A
..........................................
United
States
1,000,000
279,080,000
1,097,749,000
Ground
Transportation
1.1%
a
Uber
Technologies,
Inc.
.................................
United
States
3,500,000
269,465,000
Health
Care
Equipment
&
Supplies
3.5%
a
Boston
Scientific
Corp.
.................................
United
States
100,000
6,849,000
a
Dexcom,
Inc.
.........................................
United
States
300,000
41,610,000
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Health
Care
Equipment
&
Supplies
(continued)
a
IDEXX
Laboratories,
Inc.
................................
United
States
650,000
$
350,954,500
a
Inspire
Medical
Systems,
Inc.
............................
United
States
50,000
10,739,500
a
Intuitive
Surgical,
Inc.
..................................
United
States
1,000,000
399,090,000
a
PROCEPT
BioRobotics
Corp.
............................
United
States
100,000
4,942,000
a
Shockwave
Medical,
Inc.
................................
United
States
50,000
16,281,500
Stryker
Corp.
........................................
United
States
100,000
35,787,000
866,253,500
Health
Care
Providers
&
Services
0.6%
a
HealthEquity,
Inc.
.....................................
United
States
425,000
34,692,750
UnitedHealth
Group,
Inc.
................................
United
States
250,000
123,675,000
158,367,750
Health
Care
Technology
0.2%
Pro
Medicus
Ltd.
......................................
Australia
100,000
6,762,145
a
Veeva
Systems,
Inc.
,
A
.................................
United
States
200,000
46,338,000
53,100,145
Hotels,
Restaurants
&
Leisure
0.9%
a
Airbnb,
Inc.
,
A
........................................
United
States
125,000
20,620,000
Booking
Holdings,
Inc.
.................................
United
States
35,000
126,975,800
a
DoorDash,
Inc.
,
A
.....................................
United
States
550,000
75,746,000
223,341,800
Interactive
Media
&
Services
8.0%
a
Alphabet,
Inc.
,
A
......................................
United
States
6,500,000
981,045,000
Meta
Platforms,
Inc.
,
A
.................................
United
States
2,000,000
971,160,000
1,952,205,000
IT
Services
3.1%
a
Gartner,
Inc.
.........................................
United
States
100,000
47,667,000
a
MongoDB,
Inc.
,
A
.....................................
United
States
850,000
304,844,000
a
Shopify,
Inc.
,
A
.......................................
Canada
5,000,000
385,765,440
a
Snowflake,
Inc.
,
A
.....................................
United
States
100,000
16,160,000
754,436,440
Life
Sciences
Tools
&
Services
3.2%
Danaher
Corp.
.......................................
United
States
1,400,000
349,608,000
Thermo
Fisher
Scientific,
Inc.
............................
United
States
750,000
435,907,500
785,515,500
Pharmaceuticals
2.3%
AstraZeneca
plc
,
ADR
..................................
United
Kingdom
1,300,000
88,075,000
Eli
Lilly
&
Co.
........................................
United
States
600,000
466,776,000
Novo
Nordisk
A/S
,
ADR
.................................
Denmark
100,000
12,840,000
567,691,000
Professional
Services
0.1%
Verisk
Analytics,
Inc.
,
A
.................................
United
States
60,000
14,143,800
Semiconductors
&
Semiconductor
Equipment
24.9%
a
Advanced
Micro
Devices,
Inc.
............................
United
States
1,600,000
288,784,000
Advantest
Corp.
......................................
Japan
50,000
2,252,130
Analog
Devices,
Inc.
...................................
United
States
2,000,000
395,580,000
a
ARM
Holdings
plc
,
ADR
................................
United
States
100,000
12,499,000
ASM
International
NV
..................................
Netherlands
250,000
153,093,533
ASML
Holding
NV
,
ADR
................................
Netherlands
775,000
752,114,250
Broadcom,
Inc.
.......................................
United
States
125,000
165,676,250
Entegris,
Inc.
.........................................
United
States
600,000
84,324,000
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
(continued)
Intel
Corp.
...........................................
United
States
500,000
$
22,085,000
KLA
Corp.
...........................................
United
States
550,000
384,213,500
Lam
Research
Corp.
...................................
United
States
535,000
519,789,950
a
Lattice
Semiconductor
Corp.
.............................
United
States
1,000,000
78,230,000
Monolithic
Power
Systems,
Inc.
...........................
United
States
525,000
355,645,500
NVIDIA
Corp.
........................................
United
States
3,200,000
2,891,392,000
6,105,679,113
Software
29.8%
a
Adobe,
Inc.
..........................................
United
States
150,000
75,690,000
a
AppLovin
Corp.
,
A
.....................................
United
States
50,000
3,461,000
a
Aspen
Technology,
Inc.
.................................
United
States
25,000
5,332,000
a
Atlassian
Corp.
,
A
.....................................
United
States
300,000
58,533,000
a
Cadence
Design
Systems,
Inc.
...........................
United
States
2,300,000
715,944,000
Constellation
Software,
Inc.
..............................
Canada
65,000
177,562,848
a
Crowdstrike
Holdings,
Inc.
,
A
.............................
United
States
50,000
16,029,500
a
Datadog,
Inc.
,
A
......................................
United
States
800,000
98,880,000
a
Descartes
Systems
Group,
Inc.
(The)
......................
Canada
800,000
73,224,000
a
Fair
Isaac
Corp.
......................................
United
States
50,000
62,480,500
a
Gitlab,
Inc.
,
A
........................................
United
States
100,000
5,832,000
a
HubSpot,
Inc.
........................................
United
States
600,000
375,936,000
Intuit,
Inc.
...........................................
United
States
1,000,000
650,000,000
a
Klaviyo,
Inc.
,
A
.......................................
United
States
500,000
12,740,000
a,b
Lumine
Group,
Inc.
,
Reg
S
..............................
Canada
500,000
13,219,388
a
Manhattan
Associates,
Inc.
..............................
United
States
300,000
75,069,000
Microsoft
Corp.
.......................................
United
States
4,500,000
1,893,240,000
a
Monday.com
Ltd.
......................................
United
States
500,000
112,935,000
a
Palo
Alto
Networks,
Inc.
................................
United
States
1,000,000
284,130,000
a
Procore
Technologies,
Inc.
..............................
United
States
700,000
57,519,000
Roper
Technologies,
Inc.
................................
United
States
500,000
280,420,000
Salesforce,
Inc.
.......................................
United
States
1,000,000
301,180,000
a
ServiceNow,
Inc.
......................................
United
States
1,150,000
876,760,000
a
SPS
Commerce,
Inc.
...................................
United
States
150,000
27,735,000
a
Synopsys,
Inc.
.......................................
United
States
1,250,000
714,375,000
a
Tyler
Technologies,
Inc.
.................................
United
States
150,000
63,751,500
a
Workday,
Inc.
,
A
......................................
United
States
1,000,000
272,750,000
7,304,728,736
Technology
Hardware,
Storage
&
Peripherals
1.6%
Apple,
Inc.
..........................................
United
States
2,250,000
385,830,000
Trading
Companies
&
Distributors
0.1%
Fastenal
Co.
.........................................
United
States
350,000
26,999,000
Total
Common
Stocks
(Cost
$
10,202,487,736
)
...................................
24,503,255,307
Warrants
Warrants
0.0%
Software
0.0%
a,c
Constellation
Software,
Inc.
,
3/31/40
.......................
Canada
50,000
Total
Warrants
(Cost
$
)
......................................................
Total
Long
Term
Investments
(Cost
$
10,202,487,736
)
............................
24,503,255,307
a
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
DynaTech
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
33
Short
Term
Investments
0.1%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
0.1%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.997
%
....
United
States
36,342,803
$
36,342,803
Total
Money
Market
Funds
(Cost
$
36,342,803
)
..................................
36,342,803
Total
Short
Term
Investments
(Cost
$
36,342,803
)
................................
36,342,803
a
Total
Investments
(Cost
$
10,238,830,539
)
100.0
%
...............................
$24,539,598,110
Other
Assets,
less
Liabilities
(0.0)
%
...........................................
(11,738,145)
Net
Assets
100.0%
...........................................................
$24,527,859,965
a
a
a
See
Abbreviations
on
page
121
.
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
March
31,
2024,
the
value
of
this
security
was
$13,219,388,
representing
0.1%
of
net
assets.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
d
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$115.08
$105.41
$151.73
$129.91
$110.04
$107.59
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.10
0.19
0.01
(0.06)
0.33
0.46
Net
realized
and
unrealized
gains
(losses)
28.39
20.19
(32.51)
32.67
25.99
3.47
Total
from
investment
operations
........
28.49
20.38
(32.50)
32.61
26.32
3.93
Less
distributions
from:
Net
investment
income
..............
(0.22)
(0.18)
(0.46)
(0.44)
Net
realized
gains
.................
(7.45)
(10.71)
(13.82)
(10.61)
(5.99)
(1.04)
Total
distributions
...................
(7.67)
(10.71)
(13.82)
(10.79)
(6.45)
(1.48)
Net
asset
value,
end
of
period
..........
$135.90
$115.08
$105.41
$151.73
$129.91
$110.04
Total
return
c
.......................
25.61%
20.43%
(23.83)%
26.44%
25.09%
3.79%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.79%
0.80%
0.80%
0.79%
0.82%
0.83%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.79%
e
0.80%
e,f
0.80%
e,f
0.79%
e,f
0.81%
f
0.83%
e,f
Net
investment
income
(loss)
..........
0.17%
0.17%
0.01%
(0.04)%
0.29%
0.45%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$12,172,219
$10,072,509
$9,118,403
$12,927,577
$10,990,297
$9,157,154
Portfolio
turnover
rate
................
3.63%
2.86%
4.95%
g
6.04%
g
9.01%
4.91%
g
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$98.08
$91.92
$134.93
$117.27
$100.21
$98.38
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.31)
(0.57)
(0.87)
(1.01)
(0.47)
(0.29)
Net
realized
and
unrealized
gains
(losses)
24.03
17.44
(28.32)
29.28
23.52
3.16
Total
from
investment
operations
........
23.72
16.87
(29.19)
28.27
23.05
2.87
Less
distributions
from:
Net
realized
gains
.................
(7.45)
(10.71)
(13.82)
(10.61)
(5.99)
(1.04)
Net
asset
value,
end
of
period
..........
$114.35
$98.08
$91.92
$134.93
$117.27
$100.21
Total
return
c
.......................
25.14%
19.53%
(24.40)%
25.51%
24.16%
3.02%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.54%
1.55%
1.55%
1.54%
1.57%
1.58%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.54%
e
1.55%
e,f
1.55%
e,f
1.54%
e,f
1.56%
f
1.58%
e,f
Net
investment
(loss)
................
(0.59)%
(0.59)%
(0.75)%
(0.79)%
(0.46)%
(0.30)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$370,469
$333,956
$407,722
$666,348
$727,093
$704,217
Portfolio
turnover
rate
................
3.63%
2.86%
4.95%
g
6.04%
g
9.01%
4.91%
g
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$113.60
$104.43
$150.77
$129.28
$109.49
$107.00
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.05)
(0.10)
(0.32)
(0.41)
0.05
0.21
Net
realized
and
unrealized
gains
(losses)
28.02
19.98
(32.20)
32.51
25.86
3.46
Total
from
investment
operations
........
27.97
19.88
(32.52)
32.10
25.91
3.67
Less
distributions
from:
Net
investment
income
..............
(0.13)
(0.14)
Net
realized
gains
.................
(7.45)
(10.71)
(13.82)
(10.61)
(5.99)
(1.04)
Total
distributions
...................
(7.45)
(10.71)
(13.82)
(10.61)
(6.12)
(1.18)
Net
asset
value,
end
of
period
..........
$134.12
$113.60
$104.43
$150.77
$129.28
$109.49
Total
return
c
.......................
25.44%
20.13%
(24.01)%
26.13%
24.78%
3.54%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.04%
1.05%
1.05%
1.04%
1.07%
1.08%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.04%
e
1.05%
e,f
1.05%
e,f
1.04%
e,f
1.06%
f
1.08%
e,f
Net
investment
income
(loss)
..........
(0.08)%
(0.09)%
(0.25)%
(0.29)%
0.04%
0.20%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$308,608
$256,889
$249,874
$395,301
$420,082
$435,331
Portfolio
turnover
rate
................
3.63%
2.86%
4.95%
g
6.04%
g
9.01%
4.91%
g
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$116.16
$106.22
$152.40
$130.31
$110.37
$107.90
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.31
0.56
0.46
0.41
0.71
0.83
Net
realized
and
unrealized
gains
(losses)
28.64
20.34
(32.72)
32.76
26.06
3.47
Total
from
investment
operations
........
28.95
20.90
(32.26)
33.17
26.77
4.30
Less
distributions
from:
Net
investment
income
..............
(0.61)
(0.25)
(0.10)
(0.47)
(0.84)
(0.79)
Net
realized
gains
.................
(7.45)
(10.71)
(13.82)
(10.61)
(5.99)
(1.04)
Total
distributions
...................
(8.06)
(10.96)
(13.92)
(11.08)
(6.83)
(1.83)
Net
asset
value,
end
of
period
..........
$137.05
$116.16
$106.22
$152.40
$130.31
$110.37
Total
return
c
.......................
25.80%
20.83%
(23.57)%
26.86%
25.51%
4.16%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.47%
0.47%
f
0.46%
f
0.47%
f
0.48%
f
0.48%
f
Net
investment
income
...............
0.49%
0.49%
0.34%
0.29%
0.63%
0.80%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,717,908
$2,114,155
$2,000,923
$3,113,946
$2,999,370
$2,545,800
Portfolio
turnover
rate
................
3.63%
2.86%
4.95%
g
6.04%
g
9.01%
4.91%
g
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$116.21
$106.25
$152.47
$130.38
$110.41
$107.95
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.26
0.47
0.34
0.30
0.62
0.72
Net
realized
and
unrealized
gains
(losses)
28.67
20.36
(32.74)
32.79
26.07
3.47
Total
from
investment
operations
........
28.93
20.83
(32.40)
33.09
26.69
4.19
Less
distributions
from:
Net
investment
income
..............
(0.52)
(0.16)
(0.39)
(0.73)
(0.69)
Net
realized
gains
.................
(7.45)
(10.71)
(13.82)
(10.61)
(5.99)
(1.04)
Total
distributions
...................
(7.97)
(10.87)
(13.82)
(11.00)
(6.72)
(1.73)
Net
asset
value,
end
of
period
..........
$137.17
$116.21
$106.25
$152.47
$130.38
$110.41
Total
return
c
.......................
25.77%
20.73%
(23.64)%
26.76%
25.41%
4.05%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.54%
0.55%
0.55%
0.54%
0.57%
0.58%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.54%
e
0.55%
e,f
0.55%
e,f
0.54%
e,f
0.56%
f
0.58%
e,f
Net
investment
income
...............
0.42%
0.42%
0.25%
0.21%
0.54%
0.70%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$3,330,602
$2,860,970
$2,652,765
$4,229,679
$3,549,412
$3,154,342
Portfolio
turnover
rate
................
3.63%
2.86%
4.95%
g
6.04%
g
9.01%
4.91%
g
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Custodian
Funds
Schedule
of
Investments
(Unaudited),
March
31,
2024
Franklin
Growth
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
97.8%
Aerospace
&
Defense
3.9%
BWX
Technologies,
Inc.
................................
United
States
1,344,011
$
137,922,409
Curtiss-Wright
Corp.
...................................
United
States
74,900
19,169,906
Lockheed
Martin
Corp.
.................................
United
States
295,255
134,302,642
Northrop
Grumman
Corp.
...............................
United
States
627,397
300,309,848
RTX
Corp.
..........................................
United
States
1,505,110
146,793,378
738,498,183
Automobiles
0.4%
a
Tesla,
Inc.
...........................................
United
States
479,183
84,235,579
Beverages
2.9%
Brown-Forman
Corp.
,
B
................................
United
States
1,359,682
70,186,785
Constellation
Brands,
Inc.
,
A
.............................
United
States
452,178
122,883,893
a
Monster
Beverage
Corp.
................................
United
States
4,227,826
250,625,525
PepsiCo,
Inc.
........................................
United
States
615,845
107,779,034
551,475,237
Biotechnology
1.6%
AbbVie,
Inc.
.........................................
United
States
435,787
79,356,813
Amgen,
Inc.
.........................................
United
States
509,836
144,956,571
a
Argenx
SE
,
ADR
......................................
Netherlands
30,411
11,973,419
a
Regeneron
Pharmaceuticals,
Inc.
.........................
United
States
72,246
69,536,053
305,822,856
Broadline
Retail
4.3%
a
Amazon.com,
Inc.
.....................................
United
States
4,539,124
818,767,187
Building
Products
1.6%
Trane
Technologies
plc
.................................
United
States
989,869
297,158,674
Capital
Markets
4.3%
BlackRock,
Inc.
.......................................
United
States
123,820
103,228,734
Blackstone,
Inc.
......................................
United
States
798,607
104,913,002
Charles
Schwab
Corp.
(The)
.............................
United
States
2,102,782
152,115,250
Intercontinental
Exchange,
Inc.
...........................
United
States
1,350,590
185,611,584
S&P
Global,
Inc.
......................................
United
States
350,525
149,130,861
Tradeweb
Markets,
Inc.
,
A
...............................
United
States
1,129,220
117,630,847
812,630,278
Chemicals
3.0%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
473,767
114,779,531
Ecolab,
Inc.
..........................................
United
States
590,978
136,456,820
Linde
plc
............................................
United
States
664,827
308,692,473
559,928,824
Commercial
Services
&
Supplies
0.6%
Republic
Services,
Inc.
,
A
...............................
United
States
616,799
118,080,000
Construction
Materials
1.1%
Martin
Marietta
Materials,
Inc.
............................
United
States
334,397
205,299,694
Consumer
Staples
Distribution
&
Retail
0.7%
Costco
Wholesale
Corp.
................................
United
States
191,649
140,407,807
Electric
Utilities
0.9%
NextEra
Energy,
Inc.
...................................
United
States
2,555,446
163,318,554
Electrical
Equipment
1.2%
AMETEK,
Inc.
........................................
United
States
543,467
99,400,114
Franklin
Custodian
Funds
Schedule
of
Investments
(Unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Electrical
Equipment
(continued)
Eaton
Corp.
plc
.......................................
United
States
437,964
$
136,942,584
236,342,698
Electronic
Equipment,
Instruments
&
Components
3.0%
Amphenol
Corp.
,
A
....................................
United
States
2,623,515
302,622,455
TE
Connectivity
Ltd.
...................................
United
States
1,770,857
257,199,271
559,821,726
Entertainment
0.3%
a
ROBLOX
Corp.
,
A
.....................................
United
States
1,475,286
56,326,419
Financial
Services
4.2%
Mastercard,
Inc.
,
A
....................................
United
States
964,326
464,390,472
Visa,
Inc.
,
A
..........................................
United
States
1,167,618
325,858,831
790,249,303
Food
Products
0.3%
Lamb
Weston
Holdings,
Inc.
.............................
United
States
519,559
55,348,620
Ground
Transportation
3.4%
Canadian
Pacific
Kansas
City
Ltd.
.........................
Canada
1,346,949
118,760,493
JB
Hunt
Transport
Services,
Inc.
..........................
United
States
473,767
94,398,075
a
Uber
Technologies,
Inc.
.................................
United
States
965,539
74,336,848
Union
Pacific
Corp.
....................................
United
States
1,433,210
352,469,335
639,964,751
Health
Care
Equipment
&
Supplies
4.0%
Abbott
Laboratories
....................................
United
States
741,502
84,279,117
a
Edwards
Lifesciences
Corp.
.............................
United
States
966,324
92,341,922
a
Haemonetics
Corp.
....................................
United
States
737,264
62,925,482
a
Intuitive
Surgical,
Inc.
..................................
United
States
932,640
372,207,298
Stryker
Corp.
........................................
United
States
388,847
139,156,676
750,910,495
Health
Care
Providers
&
Services
1.0%
Laboratory
Corp.
of
America
Holdings
......................
United
States
319,016
69,692,235
UnitedHealth
Group,
Inc.
................................
United
States
247,515
122,445,671
192,137,906
Health
Care
Technology
0.5%
a
Veeva
Systems,
Inc.
,
A
.................................
United
States
384,013
88,971,972
Hotels,
Restaurants
&
Leisure
1.1%
a
Airbnb,
Inc.
,
A
........................................
United
States
345,490
56,992,031
Booking
Holdings,
Inc.
.................................
United
States
28,173
102,208,263
a
Chipotle
Mexican
Grill,
Inc.
,
A
............................
United
States
20,100
58,426,077
217,626,371
Industrial
REITs
0.4%
Prologis,
Inc.
.........................................
United
States
557,800
72,636,716
Interactive
Media
&
Services
3.6%
a
Alphabet,
Inc.
,
A
......................................
United
States
2,056,520
310,390,563
a
Alphabet,
Inc.
,
C
......................................
United
States
2,401,900
365,713,294
676,103,857
IT
Services
0.6%
a,b,c
Canva,
Inc.
..........................................
Australia
25,413
27,107,059
Franklin
Custodian
Funds
Schedule
of
Investments
(Unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
41
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
IT
Services
(continued)
a
Shopify,
Inc.
,
A
.......................................
Canada
411,700
$
31,770,889
a
Snowflake,
Inc.
,
A
.....................................
United
States
373,979
60,435,006
119,312,954
Life
Sciences
Tools
&
Services
5.5%
Agilent
Technologies,
Inc.
...............................
United
States
1,169,568
170,183,840
Danaher
Corp.
.......................................
United
States
1,132,672
282,850,852
a
Mettler-Toledo
International,
Inc.
..........................
United
States
196,009
260,944,821
Thermo
Fisher
Scientific,
Inc.
............................
United
States
317,634
184,612,057
West
Pharmaceutical
Services,
Inc.
........................
United
States
358,800
141,980,748
1,040,572,318
Machinery
3.8%
Deere
&
Co.
.........................................
United
States
377,751
155,157,446
Dover
Corp.
.........................................
United
States
375,644
66,560,361
Illinois
Tool
Works,
Inc.
.................................
United
States
753,519
202,191,753
Ingersoll
Rand,
Inc.
....................................
United
States
1,859,776
176,585,731
Xylem,
Inc.
..........................................
United
States
983,901
127,159,365
727,654,656
Pharmaceuticals
3.9%
AstraZeneca
plc
,
ADR
..................................
United
Kingdom
2,110,216
142,967,134
Eli
Lilly
&
Co.
........................................
United
States
762,284
593,026,461
735,993,595
Professional
Services
0.3%
Automatic
Data
Processing,
Inc.
..........................
United
States
105,229
26,279,891
Verisk
Analytics,
Inc.
,
A
.................................
United
States
178,221
42,012,036
68,291,927
Semiconductors
&
Semiconductor
Equipment
11.6%
a,d
ARM
Holdings
plc
,
ADR
................................
United
States
356,500
44,558,935
ASML
Holding
NV
,
ADR
................................
Netherlands
388,894
377,409,960
Lam
Research
Corp.
...................................
United
States
28,550
27,738,323
a
Lattice
Semiconductor
Corp.
.............................
United
States
695,800
54,432,434
Monolithic
Power
Systems,
Inc.
...........................
United
States
426,545
288,950,114
NVIDIA
Corp.
........................................
United
States
1,104,767
998,223,271
NXP
Semiconductors
NV
...............................
China
665,330
164,848,814
Texas
Instruments,
Inc.
.................................
United
States
1,326,618
231,110,122
2,187,271,973
Software
18.4%
a
Adobe,
Inc.
..........................................
United
States
143,493
72,406,568
a
ANSYS,
Inc.
.........................................
United
States
125,232
43,475,541
a
Autodesk,
Inc.
........................................
United
States
741,413
193,078,773
a
BILL
Holdings,
Inc.
....................................
United
States
1,201,782
82,586,459
a,b,c
Checkout
Payments
Group
Ltd.
,
B
.........................
United
Kingdom
96,603
8,593,062
a
Crowdstrike
Holdings,
Inc.
,
A
.............................
United
States
132,753
42,559,284
Intuit,
Inc.
...........................................
United
States
710,431
461,780,150
Microsoft
Corp.
.......................................
United
States
2,793,768
1,175,394,073
a
Procore
Technologies,
Inc.
..............................
United
States
66,651
5,476,713
a
PTC,
Inc.
...........................................
United
States
1,141,015
215,583,374
Salesforce,
Inc.
.......................................
United
States
534,162
160,878,911
a
ServiceNow,
Inc.
......................................
United
States
634,095
483,434,028
a,b,c
Stripe,
Inc.
,
B
........................................
United
States
540,043
14,041,118
a
Synopsys,
Inc.
.......................................
United
States
503,220
287,590,230
a
Tyler
Technologies,
Inc.
.................................
United
States
114,252
48,558,243
Franklin
Custodian
Funds
Schedule
of
Investments
(Unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Software
(continued)
a
Workday,
Inc.
,
A
......................................
United
States
661,601
$
180,451,673
3,475,888,200
Technology
Hardware,
Storage
&
Peripherals
3.0%
Apple,
Inc.
..........................................
United
States
3,279,793
562,418,904
Textiles,
Apparel
&
Luxury
Goods
0.9%
NIKE,
Inc.
,
B
.........................................
United
States
1,757,536
165,173,233
Trading
Companies
&
Distributors
1.1%
Fastenal
Co.
.........................................
United
States
2,605,313
200,973,845
Water
Utilities
0.4%
American
Water
Works
Co.,
Inc.
..........................
United
States
579,967
70,877,767
Total
Common
Stocks
(Cost
$
4,616,894,491
)
....................................
18,486,493,079
Convertible
Preferred
Stocks
0.5%
IT
Services
0.0%
a,b,c
Canva,
Inc.
,
A
........................................
Australia
2,353
2,509,854
a,b,c
Canva,
Inc.
,
A-3
......................................
Australia
94
100,266
a,b,c
Canva,
Inc.
,
A-4
......................................
Australia
8
8,533
a,b,c
Canva,
Inc.
,
A-5
......................................
Australia
5
5,333
2,623,986
Software
0.5%
a,b,c
Gusto,
Inc.
,
E
........................................
United
States
822,494
26,071,343
a,b,c
OneTrust
LLC
,
C
......................................
United
States
849,894
13,343,113
a,b,c
Stripe,
Inc.
,
I
.........................................
United
States
1,759,545
45,748,170
85,162,626
Total
Convertible
Preferred
Stocks
(Cost
$
81,287,285
)
...........................
87,786,612
Preferred
Stocks
0.9%
Life
Sciences
Tools
&
Services
0.9%
a
Sartorius
AG
.........................................
Germany
428,400
170,114,240
a
Total
Preferred
Stocks
(Cost
$
151,133,458
)
.....................................
170,114,240
Total
Long
Term
Investments
(Cost
$
4,849,315,234
)
.............................
18,744,393,931
a
Short
Term
Investments
0.7%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
0.7%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.997
%
....
United
States
132,749,137
132,749,137
Total
Money
Market
Funds
(Cost
$
132,749,137
)
.................................
132,749,137
Total
Short
Term
Investments
(Cost
$
132,749,137
)
...............................
132,749,137
a
Total
Investments
(Cost
$
4,982,064,371
)
99.9
%
..................................
$18,877,143,068
Other
Assets,
less
Liabilities
0.1
%
.............................................
22,663,279
Net
Assets
100.0%
...........................................................
$18,899,806,347
a
a
a
Franklin
Custodian
Funds
Schedule
of
Investments
(Unaudited)
Franklin
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
43
See
Abbreviations
on
page
121
.
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
c
See
Note
7
regarding
restricted
securities.
d
A
portion
or
all
of
the
security
is
on
loan
at
March
31,
2024.
See
Note
1
(
f
).
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
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
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of
these
financial
statements.
44
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.19
$2.14
$2.47
$2.08
$2.30
$2.32
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.09
0.07
0.08
0.08
0.08
Net
realized
and
unrealized
gains
(losses)
0.16
0.09
(0.24)
0.42
(0.18)
0.02
Total
from
investment
operations
........
0.21
0.18
(0.17)
0.50
(0.10)
0.10
Less
distributions
from:
Net
investment
income
..............
(0.06)
(0.13)
(0.11)
(0.11)
(0.12)
(0.12)
Net
realized
gains
.................
(0.05)
Total
distributions
...................
(0.06)
(0.13)
(0.16)
(0.11)
(0.12)
(0.12)
Net
asset
value,
end
of
period
..........
$2.34
$2.19
$2.14
$2.47
$2.08
$2.30
Total
return
c
.......................
9.94%
8.33%
(7.28)%
24.55%
(4.48)%
4.40%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.71%
0.71%
0.72%
0.72%
0.71%
0.72%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.71%
e
0.71%
e
0.71%
f
0.72%
e,f
0.70%
f
0.72%
e,f
Net
investment
income
...............
4.19%
4.02%
3.08%
3.19%
3.64%
3.92%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$21,765,950
$19,705,319
$16,829,899
$16,044,379
$10,072,437
$7,427,468
Portfolio
turnover
rate
................
22.99%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
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.
Semiannual
Report
45
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.20
$2.15
$2.48
$2.08
$2.30
$2.32
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.09
0.08
0.08
0.08
0.09
Net
realized
and
unrealized
gains
(losses)
0.17
0.09
(0.24)
0.43
(0.18)
0.01
Total
from
investment
operations
........
0.22
0.18
(0.16)
0.51
(0.10)
0.10
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.13)
(0.12)
(0.11)
(0.12)
(0.12)
Net
realized
gains
.................
(0.05)
Total
distributions
...................
(0.07)
(0.13)
(0.17)
(0.11)
(0.12)
(0.12)
Net
asset
value,
end
of
period
..........
$2.35
$2.20
$2.15
$2.48
$2.08
$2.30
Total
return
c
.......................
9.96%
8.43%
(7.10)%
25.19%
(4.39)%
4.50%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.61%
0.61%
0.62%
0.62%
0.61%
0.62%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.61%
e
0.61%
e
0.61%
f
0.62%
e,f
0.60%
f
0.62%
e,f
Net
investment
income
...............
4.29%
4.11%
3.15%
3.32%
3.74%
4.02%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$30,587,109
$29,633,019
$30,236,582
$35,704,730
$32,693,224
$39,625,649
Portfolio
turnover
rate
................
22.99%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.24
$2.19
$2.52
$2.12
$2.34
$2.35
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.08
0.07
0.07
0.07
0.08
Net
realized
and
unrealized
gains
(losses)
0.17
0.09
(0.25)
0.43
(0.18)
0.02
Total
from
investment
operations
........
0.21
0.17
(0.18)
0.50
(0.11)
0.10
Less
distributions
from:
Net
investment
income
..............
(0.06)
(0.12)
(0.10)
(0.10)
(0.11)
(0.11)
Net
realized
gains
.................
(0.05)
Total
distributions
...................
(0.06)
(0.12)
(0.15)
(0.10)
(0.11)
(0.11)
Net
asset
value,
end
of
period
..........
$2.39
$2.24
$2.19
$2.52
$2.12
$2.34
Total
return
c
.......................
9.49%
8.19%
(7.89)%
24.09%
(4.80)%
4.35%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.11%
1.11%
1.12%
1.13%
1.11%
1.12%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.11%
e
1.11%
e
1.11%
f
1.12%
f
1.10%
f
1.12%
e,f
Net
investment
income
...............
3.79%
3.61%
2.63%
2.84%
3.24%
3.52%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$4,725,986
$4,905,480
$5,654,802
$7,507,658
$9,339,238
$13,488,627
Portfolio
turnover
rate
................
22.99%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
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.
Semiannual
Report
47
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.15
$2.10
$2.43
$2.04
$2.26
$2.28
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.08
0.07
0.07
0.07
0.08
Net
realized
and
unrealized
gains
(losses)
0.16
0.09
(0.24)
0.43
(0.18)
0.01
Total
from
investment
operations
........
0.20
0.17
(0.17)
0.50
(0.11)
0.09
Less
distributions
from:
Net
investment
income
..............
(0.06)
(0.12)
(0.11)
(0.11)
(0.11)
(0.11)
Net
realized
gains
.................
(0.05)
Total
distributions
...................
(0.06)
(0.12)
(0.16)
(0.11)
(0.11)
(0.11)
Net
asset
value,
end
of
period
..........
$2.29
$2.15
$2.10
$2.43
$2.04
$2.26
Total
return
c
.......................
9.51%
8.21%
(7.61)%
24.75%
(4.82)%
4.20%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.96%
0.96%
0.97%
0.97%
0.96%
0.97%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.96%
e
0.96%
e
0.96%
f
0.97%
e,f
0.95%
f
0.97%
e,f
Net
investment
income
...............
3.94%
3.77%
2.84%
2.97%
3.40%
3.67%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$323,020
$300,283
$270,060
$257,109
$221,584
$265,531
Portfolio
turnover
rate
................
22.99%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.19
$2.14
$2.47
$2.07
$2.29
$2.30
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.10
0.08
0.08
0.09
0.10
Net
realized
and
unrealized
gains
(losses)
0.17
0.09
(0.24)
0.44
(0.19)
0.01
Total
from
investment
operations
........
0.22
0.19
(0.16)
0.52
(0.10)
0.11
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.14)
(0.12)
(0.12)
(0.12)
(0.12)
Net
realized
gains
.................
(0.05)
Total
distributions
...................
(0.07)
(0.14)
(0.17)
(0.12)
(0.12)
(0.12)
Net
asset
value,
end
of
period
..........
$2.34
$2.19
$2.14
$2.47
$2.07
$2.29
Total
return
c
.......................
10.09%
9.17%
(7.38)%
25.53%
(4.23)%
5.17%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.41%
0.41%
0.42%
0.43%
0.40%
0.41%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.40%
0.40%
0.40%
e
0.41%
e
0.39%
e
0.40%
e
Net
investment
income
...............
4.50%
4.35%
3.43%
3.50%
3.96%
4.24%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,800,963
$1,662,931
$1,158,685
$748,355
$1,626,735
$1,902,027
Portfolio
turnover
rate
................
22.99%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
49
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$2.18
$2.13
$2.46
$2.07
$2.28
$2.30
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.10
0.08
0.08
0.08
0.09
Net
realized
and
unrealized
gains
(losses)
0.16
0.09
(0.24)
0.43
(0.17)
0.01
Total
from
investment
operations
........
0.21
0.19
(0.16)
0.51
(0.09)
0.10
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.14)
(0.12)
(0.12)
(0.12)
(0.12)
Net
realized
gains
.................
(0.05)
Total
distributions
...................
(0.07)
(0.14)
(0.17)
(0.12)
(0.12)
(0.12)
Net
asset
value,
end
of
period
..........
$2.32
$2.18
$2.13
$2.46
$2.07
$2.28
Total
return
c
.......................
9.64%
9.16%
(7.44)%
24.98%
(3.86)%
4.65%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.46%
0.46%
0.47%
0.47%
0.46%
0.47%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.46%
e
0.46%
e
0.46%
f
0.47%
e,f
0.45%
f
0.47%
e,f
Net
investment
income
...............
4.44%
4.27%
3.32%
3.46%
3.89%
4.17%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$13,877,267
$12,941,766
$11,638,757
$11,969,691
$9,712,076
$11,816,599
Portfolio
turnover
rate
................
22.99%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2024
Franklin
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
19.7%
Aerospace
&
Defense
1.2%
a
Lockheed
Martin
Corp.
.................................
United
States
1,900,000
$
864,253,000
Air
Freight
&
Logistics
0.3%
United
Parcel
Service,
Inc.,
B
............................
United
States
1,500,000
222,945,000
Banks
1.6%
a
Bank
of
America
Corp.
.................................
United
States
14,000,000
530,880,000
a
Fifth
Third
Bancorp
....................................
United
States
5,000,000
186,050,000
PNC
Financial
Services
Group,
Inc.
(The)
...................
United
States
1,000,000
161,600,000
Truist
Financial
Corp.
..................................
United
States
6,000,000
233,880,000
US
Bancorp
.........................................
United
States
500,000
22,350,000
1,134,760,000
Beverages
0.9%
Coca-Cola
Co.
(The)
...................................
United
States
3,000,000
183,540,000
PepsiCo,
Inc.
........................................
United
States
2,500,000
437,525,000
621,065,000
Biotechnology
0.3%
AbbVie,
Inc.
.........................................
United
States
1,100,000
200,310,000
Capital
Markets
0.3%
a
Morgan
Stanley
.......................................
United
States
2,500,000
235,400,000
Chemicals
0.8%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
1,050,000
254,383,500
Albemarle
Corp.
......................................
United
States
1,000,000
131,740,000
a
LyondellBasell
Industries
NV,
A
...........................
United
States
1,700,000
173,876,000
559,999,500
Communications
Equipment
0.3%
Cisco
Systems,
Inc.
...................................
United
States
5,000,000
249,550,000
Consumer
Staples
Distribution
&
Retail
0.2%
a
Target
Corp.
.........................................
United
States
1,000,000
177,210,000
Containers
&
Packaging
0.3%
International
Paper
Co.
.................................
United
States
5,600,000
218,512,000
Diversified
Telecommunication
Services
0.3%
Verizon
Communications,
Inc.
............................
United
States
5,000,000
209,800,000
Electric
Utilities
3.0%
American
Electric
Power
Co.,
Inc.
.........................
United
States
3,000,000
258,300,000
a
Duke
Energy
Corp.
....................................
United
States
4,000,000
386,840,000
Edison
International
...................................
United
States
1,800,000
127,314,000
Entergy
Corp.
........................................
United
States
500,000
52,840,000
a
NextEra
Energy,
Inc.
...................................
United
States
7,800,489
498,529,252
Southern
Co.
(The)
....................................
United
States
10,000,000
717,400,000
Xcel
Energy,
Inc.
......................................
United
States
3,000,000
161,250,000
2,202,473,252
Ground
Transportation
0.3%
Union
Pacific
Corp.
....................................
United
States
1,000,000
245,930,000
Health
Care
Providers
&
Services
0.4%
a
CVS
Health
Corp.
.....................................
United
States
2,500,000
199,400,000
a
UnitedHealth
Group,
Inc.
................................
United
States
150,000
74,205,000
273,605,000
Hotels,
Restaurants
&
Leisure
0.1%
Starbucks
Corp.
......................................
United
States
1,000,000
91,390,000
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
51
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Household
Products
0.8%
Procter
&
Gamble
Co.
(The)
.............................
United
States
3,500,000
$
567,875,000
Industrial
Conglomerates
0.3%
Honeywell
International,
Inc.
.............................
United
States
1,000,000
205,250,000
Insurance
0.1%
MetLife,
Inc.
.........................................
United
States
1,000,000
74,110,000
Media
0.1%
Comcast
Corp.,
A
.....................................
United
States
1,500,000
65,025,000
Metals
&
Mining
0.4%
a
Barrick
Gold
Corp.
....................................
Canada
4,000,000
66,560,000
a
Rio
Tinto
plc,
ADR
.....................................
Australia
3,500,000
223,090,000
289,650,000
Multi-Utilities
0.6%
a
Dominion
Energy,
Inc.
..................................
United
States
5,000,000
245,950,000
Sempra
.............................................
United
States
2,500,000
179,575,000
425,525,000
Oil,
Gas
&
Consumable
Fuels
2.9%
a
Chevron
Corp.
.......................................
United
States
7,500,000
1,183,050,000
a
Exxon
Mobil
Corp.
.....................................
United
States
5,000,000
581,200,000
Shell
plc,
ADR
........................................
Netherlands
4,000,000
268,160,000
TotalEnergies
SE,
ADR
.................................
France
1,500,000
103,245,000
2,135,655,000
Pharmaceuticals
2.7%
b
Bausch
Health
Cos.,
Inc.
................................
United
States
15,000,000
159,150,000
Bristol-Myers
Squibb
Co.
................................
United
States
8,000,000
433,840,000
a
Johnson
&
Johnson
...................................
United
States
5,000,000
790,950,000
Merck
&
Co.,
Inc.
.....................................
United
States
1,500,000
197,925,000
Pfizer,
Inc.
...........................................
United
States
15,000,000
416,250,000
1,998,115,000
Semiconductors
&
Semiconductor
Equipment
1.0%
Broadcom,
Inc.
.......................................
United
States
20,000
26,508,200
a
Intel
Corp.
...........................................
United
States
1,000,000
44,170,000
QUALCOMM,
Inc.
.....................................
United
States
1,000,000
169,300,000
Texas
Instruments,
Inc.
.................................
United
States
3,000,000
522,630,000
762,608,200
Tobacco
0.5%
Philip
Morris
International,
Inc.
...........................
United
States
4,000,000
366,480,000
Total
Common
Stocks
(Cost
$12,697,393,977)
...................................
14,397,495,952
Management
Investment
Companies
0.2%
Capital
Markets
0.2%
c
Clarion
Partners
Real
Estate
Income
Fund,
Inc.,
Class
I
........
United
States
7,867,833
93,076,462
Total
Management
Investment
Companies
(Cost
$100,000,000)
...................
93,076,462
d
Equity-Linked
Securities
17.4%
Aerospace
&
Defense
0.5%
e
Barclays
Bank
plc
into
Northrop
Grumman
Corp.,
144A,
7%,
11/08/24
..........................................
United
States
315,000
154,880,416
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
52
a
a
Country
Shares
a
Value
a
a
a
a
a
a
d
Equity-Linked
Securities
(continued)
Aerospace
&
Defense
(continued)
e
Merrill
Lynch
International
&
Co.
CV
into
Raytheon
Technologies
Corp.,
144A,
7.5%,
5/08/24
............................
United
States
2,350,000
$
233,581,426
388,461,842
Air
Freight
&
Logistics
0.3%
e
J.P.
Morgan
Structured
Products
BV
into
United
Parcel
Service,
Inc.,
144A,
9%,
10/22/24
..................................
United
States
1,530,000
235,740,005
Automobiles
0.4%
e
Royal
Bank
of
Canada
into
General
Motors
Co.,
144A,
12%,
6/18/24
United
States
8,750,000
325,877,214
Banks
2.0%
e
Barclays
Bank
plc
into
Citigroup,
Inc.,
144A,
9%,
7/03/24
........
United
States
5,110,000
287,712,666
e
Barclays
Bank
plc
into
US
Bancorp,
144A,
10%,
8/23/24
........
United
States
4,320,000
188,688,255
e
BNP
Paribas
Issuance
BV
into
Bank
of
America
Corp.,
144A,
8.5%,
2/26/25
...........................................
United
States
6,800,000
242,372,435
e
Citigroup
Global
Markets
Holdings,
Inc.
into
Bank
of
America
Corp.,
144A,
8%,
8/16/24
...................................
United
States
8,128,000
287,723,961
e
Merrill
Lynch
International
&
Co.
CV
into
Fifth
Third
Bancorp,
144A,
10%,
3/10/25
.......................................
United
States
3,150,000
112,738,387
e
Royal
Bank
of
Canada
into
Citigroup,
Inc.,
144A,
10%,
10/15/24
..
United
States
6,300,000
304,449,146
1,423,684,850
Biotechnology
0.3%
e
Merrill
Lynch
International
&
Co.
CV
into
AbbVie,
Inc.,
144A,
7.5%,
4/23/25
...........................................
United
States
1,385,000
251,087,046
Broadline
Retail
0.9%
e
Goldman
Sachs
International
Bank
into
Amazon.com,
Inc.,
144A,
9%,
11/20/24
.......................................
United
States
2,375,000
313,531,680
e
Royal
Bank
of
Canada
into
Amazon.com,
Inc.,
144A,
10%,
4/05/24
United
States
2,800,000
328,002,900
641,534,580
Building
Products
0.4%
e
J.P.
Morgan
Structured
Products
BV
into
Johnson
Controls
International
plc,
144A,
8%,
9/09/24
......................
United
States
2,360,000
149,732,817
e
Wells
Fargo
Bank
NA
into
Johnson
Controls
International
plc,
144A,
9%,
12/10/24
.......................................
United
States
2,450,000
139,663,443
289,396,260
Capital
Markets
1.8%
e
BNP
Paribas
Issuance
BV
into
Goldman
Sachs
Group,
Inc.
(The),
144A,
7.5%,
8/19/24
.................................
United
States
690,000
272,984,718
e
Goldman
Sachs
International
Bank
into
Morgan
Stanley,
144A,
9%,
12/24/24
..........................................
United
States
2,812,000
258,601,431
e
Merrill
Lynch
International
&
Co.
CV
into
Charles
Schwab
Corp.
(The),
144A,
9%,
2/25/25
..............................
United
States
3,550,000
240,935,398
e
Merrill
Lynch
International
&
Co.
CV
into
Morgan
Stanley,
144A,
10%,
6/04/24
.......................................
United
States
3,000,000
274,931,130
e
UBS
AG
into
Charles
Schwab
Corp.
(The),
144A,
10%,
7/17/24
...
United
States
4,300,000
275,026,878
1,322,479,555
Chemicals
0.4%
e
Barclays
Bank
plc
into
Air
Products
and
Chemicals,
Inc.,
144A,
8.5%,
3/10/25
...........................................
United
States
730,000
173,003,879
e
National
Bank
of
Canada
into
Albemarle
Corp.,
144A,
12%,
3/31/25
United
States
830,000
106,523,213
279,527,092
Communications
Equipment
0.6%
e
Royal
Bank
of
Canada
into
Cisco
Systems,
Inc.,
144A,
8%,
9/03/24
United
States
4,300,000
219,799,065
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
53
a
a
Country
Shares
a
Value
a
a
a
a
a
a
d
Equity-Linked
Securities
(continued)
Communications
Equipment
(continued)
e
UBS
AG
into
Cisco
Systems,
Inc.,
144A,
8.5%,
6/20/24
.........
United
States
4,595,000
$
229,823,169
449,622,234
Consumer
Staples
Distribution
&
Retail
0.4%
e
UBS
AG
into
Target
Corp.,
144A,
9%,
9/05/24
................
United
States
1,935,000
304,830,940
Containers
&
Packaging
0.2%
e
Mizuho
Markets
Cayman
LP
into
International
Paper
Co.,
144A,
10%,
1/22/25
.......................................
United
States
2,900,000
110,451,120
Electric
Utilities
0.5%
e
Mizuho
Markets
Cayman
LP
into
NextEra
Energy,
Inc.,
144A,
9%,
4/08/25
...........................................
United
States
3,290,000
207,584,753
e
Wells
Fargo
Bank
NA
into
NextEra
Energy,
Inc.,
144A,
8%,
5/08/24
United
States
2,700,000
176,821,839
384,406,592
Ground
Transportation
0.4%
e
Merrill
Lynch
BV
into
Union
Pacific
Corp.,
144A,
8%,
11/05/24
....
United
States
1,300,000
302,819,531
Hotels,
Restaurants
&
Leisure
0.3%
e
Wells
Fargo
Bank
NA
into
Starbucks
Corp.,
144A,
8%,
3/04/25
...
United
States
2,500,000
233,364,693
Insurance
0.4%
e
BNP
Paribas
Issuance
BV
into
MetLife,
Inc.,
144A,
9%,
10/23/24
..
United
States
3,800,000
266,191,722
Interactive
Media
&
Services
0.4%
e
JPMorgan
Chase
Bank
NA
into
Alphabet,
Inc.,
144A,
8%,
3/18/25
.
United
States
1,805,000
252,951,473
Media
0.5%
e
BNP
Paribas
Issuance
BV
into
Comcast
Corp.,
144A,
8%,
1/15/25
United
States
3,100,000
136,119,940
e
J.P.
Morgan
Structured
Products
BV
into
Comcast
Corp.,
144A,
8%,
8/13/24
...........................................
United
States
5,825,000
252,589,492
388,709,432
Metals
&
Mining
1.1%
e
Mizuho
Markets
Cayman
LP
into
Freeport-McMoRan,
Inc.,
144A,
11%,
12/10/24
......................................
United
States
7,539,000
322,563,962
e
Royal
Bank
of
Canada
into
Freeport-McMoRan,
Inc.,
144A,
10%,
5/03/24
...........................................
United
States
4,900,000
231,878,023
e
UBS
AG
into
Newmont
Corp.,
144A,
11%,
1/16/25
.............
United
States
6,000,000
225,824,761
780,266,746
Multi-Utilities
0.2%
e
Wells
Fargo
Bank
NA
into
Dominion
Energy,
Inc.,
144A,
9%,
1/10/25
United
States
2,130,000
106,800,818
Oil,
Gas
&
Consumable
Fuels
1.4%
e
BNP
Paribas
Issuance
BV
into
BP
plc,
144A,
8.5%,
4/24/24
......
United
Kingdom
6,100,000
234,867,528
e
Citigroup
Global
Markets
Holdings,
Inc.
into
BP
plc,
144A,
10%,
12/30/24
..........................................
United
Kingdom
6,600,000
252,678,626
e
Citigroup
Global
Markets
Holdings,
Inc.
into
Exxon
Mobil
Corp.,
144A,
9%,
3/12/25
...................................
United
States
2,600,000
285,058,143
e
J.P.
Morgan
Structured
Products
BV
into
Exxon
Mobil
Corp.,
144A,
9%,
9/24/24
........................................
United
States
2,435,000
282,337,192
1,054,941,489
Pharmaceuticals
0.5%
e
BNP
Paribas
Issuance
BV
into
Pfizer,
Inc.,
144A,
8.5%,
6/10/24
..
United
States
5,920,000
166,720,844
e
Wells
Fargo
Bank
NA
into
Bristol-Myers
Squibb
Co.,
144A,
7.5%,
5/13/24
...........................................
United
States
3,927,000
215,512,716
382,233,560
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
a
a
Country
Shares
a
Value
a
a
a
a
a
a
d
Equity-Linked
Securities
(continued)
Semiconductors
&
Semiconductor
Equipment
2.4%
e
Citigroup
Global
Markets
Holdings,
Inc.
into
Intel
Corp.,
144A,
10%,
10/03/24
..........................................
United
States
6,700,000
$
281,628,361
e
Goldman
Sachs
International
Bank
into
Texas
Instruments,
Inc.,
144A,
9%,
11/10/25
..................................
United
States
1,670,000
279,771,771
e
Mizuho
Markets
Cayman
LP
into
Microchip
Technology,
Inc.,
144A,
10%,
11/12/24
......................................
United
States
3,500,000
299,743,242
e
Morgan
Stanley
Finance
II
Ltd.
into
Microchip
Technology,
Inc.,
144A,
10%,
3/03/25
..................................
United
States
1,850,000
159,479,419
e
National
Bank
of
Canada
into
Analog
Devices,
Inc.,
144A,
8.5%,
7/17/24
...........................................
United
States
1,500,000
298,474,995
e
UBS
AG
into
Texas
Instruments,
Inc.,
144A,
8.5%,
8/07/24
......
United
States
1,583,000
278,440,767
e
Wells
Fargo
Bank
NA
into
Intel
Corp.,
144A,
11%,
2/14/25
.......
United
States
4,000,000
184,583,822
1,782,122,377
Software
0.4%
e
Mizuho
Markets
Cayman
LP
into
Oracle
Corp.,
144A,
8.5%,
2/10/25
United
States
2,350,000
282,536,461
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
295,275,283
Technology
Hardware,
Storage
&
Peripherals
0.3%
e
UBS
AG
into
Apple,
Inc.,
144A,
7%,
4/02/25
.................
United
States
1,150,000
197,944,244
Total
Equity-Linked
Securities
(Cost
$12,062,179,695)
...........................
12,733,257,159
Convertible
Preferred
Stocks
0.5%
Chemicals
0.4%
b
Albemarle
Corp.,
7.25%
................................
United
States
5,500,000
324,500,000
b
Financial
Services
0.1%
b
FNMA,
5.375%
.......................................
United
States
4,240
50,668,000
b
Total
Convertible
Preferred
Stocks
(Cost
$614,906,139)
..........................
375,168,000
Preferred
Stocks
0.0%
Financial
Services
0.0%
b
FNMA,
8.25%,
S
......................................
United
States
4,000,000
15,960,000
b
Total
Preferred
Stocks
(Cost
$93,801,500)
......................................
15,960,000
Principal
Amount
*
Corporate
Bonds
48.0%
Aerospace
&
Defense
1.8%
Boeing
Co.
(The)
,
Senior
Bond,
3.2%,
3/01/29
............................
United
States
25,000,000
22,349,259
Senior
Bond,
3.625%,
2/01/31
..........................
United
States
59,000,000
51,969,983
Senior
Bond,
3.6%,
5/01/34
............................
United
States
25,000,000
20,729,726
Senior
Bond,
3.25%,
2/01/35
...........................
United
States
25,000,000
19,686,512
Senior
Note,
2.196%,
2/04/26
..........................
United
States
45,000,000
42,148,177
Senior
Note,
5.04%,
5/01/27
...........................
United
States
180,000,000
176,681,351
Senior
Note,
3.25%,
2/01/28
...........................
United
States
60,000,000
55,228,034
Senior
Note,
5.15%,
5/01/30
...........................
United
States
390,000,000
377,518,534
e
Bombardier,
Inc.
,
Senior
Note
,
144A,
7.25
%
,
7/01/31
...........
Canada
40,000,000
40,131,440
RTX
Corp.
,
Senior
Bond
,
6.1
%
,
3/15/34
.....................
United
States
25,000,000
26,734,560
Textron,
Inc.
,
Senior
Bond,
3%,
6/01/30
.............................
United
States
50,000,000
44,146,974
Senior
Bond,
2.45%,
3/15/31
...........................
United
States
40,000,000
33,718,544
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
55
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Aerospace
&
Defense
(continued)
e
TransDigm,
Inc.
,
Senior
Secured
Note,
144A,
6.75%,
8/15/28
...............
United
States
100,000,000
$
101,444,800
Senior
Secured
Note,
144A,
6.375%,
3/01/29
..............
United
States
135,000,000
135,589,005
Senior
Secured
Note,
144A,
6.875%,
12/15/30
.............
United
States
50,000,000
51,024,750
Senior
Secured
Note,
144A,
6.625%,
3/01/32
..............
United
States
100,000,000
101,154,100
1,300,255,749
Air
Freight
&
Logistics
0.0%
FedEx
Corp.
,
Senior
Bond
,
2.4
%
,
5/15/31
...................
United
States
29,000,000
24,631,548
Automobile
Components
0.5%
e
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
..........................................
United
States
85,000,000
75,638,746
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Bond,
5%,
5/31/26
.............................
United
States
57,000,000
55,830,400
Senior
Bond,
4.875%,
3/15/27
..........................
United
States
34,757,000
33,611,653
f
Senior
Bond,
5.25%,
4/30/31
...........................
United
States
45,000,000
41,353,695
Senior
Note,
5%,
7/15/29
.............................
United
States
130,000,000
121,506,372
f
Senior
Note,
5.25%,
7/15/31
...........................
United
States
40,500,000
36,944,760
364,885,626
Automobiles
0.9%
Ford
Motor
Co.
,
Senior
Bond,
4.346%,
12/08/26
.........................
United
States
65,000,000
63,303,356
Senior
Bond,
3.25%,
2/12/32
...........................
United
States
150,000,000
124,855,251
Senior
Bond,
6.1%,
8/19/32
............................
United
States
195,000,000
197,720,189
General
Motors
Co.
,
Senior
Bond,
5%,
10/01/28
............................
United
States
25,000,000
24,894,144
f
Senior
Bond,
5.6%,
10/15/32
...........................
United
States
25,000,000
25,308,930
Senior
Bond,
5.15%,
4/01/38
...........................
United
States
140,000,000
131,488,671
e
Volkswagen
Group
of
America
Finance
LLC
,
Senior
Note
,
144A,
1.25
%
,
11/24/25
.....................................
Germany
97,000,000
90,676,261
658,246,802
Banks
3.7%
Bank
of
America
Corp.
,
g
AA,
Junior
Sub.
Bond,
6.1%
to
3/16/25,
FRN
thereafter,
Perpetual
United
States
70,000,000
70,368,410
g
X,
Junior
Sub.
Bond,
6.25%
to
9/04/24,
FRN
thereafter,
Perpetual
United
States
50,000,000
50,181,900
Senior
Bond,
3.419%
to
12/19/27,
FRN
thereafter,
12/20/28
...
United
States
45,000,000
42,228,542
Senior
Bond,
4.571%
to
4/26/32,
FRN
thereafter,
4/27/33
.....
United
States
185,000,000
175,798,221
Barclays
plc
,
Senior
Bond,
4.375%,
1/12/26
..........................
United
Kingdom
27,000,000
26,503,079
Senior
Bond,
4.337%,
1/10/28
..........................
United
Kingdom
31,000,000
29,919,502
Senior
Bond,
2.645%
to
6/23/30,
FRN
thereafter,
6/24/31
.....
United
Kingdom
49,000,000
41,397,845
Senior
Bond,
5.746%
to
8/08/32,
FRN
thereafter,
8/09/33
.....
United
Kingdom
100,000,000
100,487,769
Senior
Bond,
7.437%
to
11/01/32,
FRN
thereafter,
11/02/33
....
United
Kingdom
75,000,000
83,374,043
h
Senior
Bond,
FRN,
6.692%,
(SOFR
+
2.62%),
9/13/34
........
United
Kingdom
70,000,000
74,609,529
Senior
Note,
7.325%
to
11/01/25,
FRN
thereafter,
11/02/26
....
United
Kingdom
30,000,000
30,749,497
Senior
Note,
5.501%
to
8/08/27,
FRN
thereafter,
8/09/28
......
United
Kingdom
80,000,000
79,791,271
Sub.
Bond,
7.119%
to
6/26/33,
FRN
thereafter,
6/27/34
.......
United
Kingdom
55,000,000
58,674,635
Citigroup,
Inc.
,
g,h
D,
Junior
Sub.
Bond,
FRN,
9.035%,
(3-month
SOFR
+
3.728%),
Perpetual
.........................................
United
States
55,000,000
55,174,625
g
M,
Junior
Sub.
Bond,
6.3%
to
5/14/24,
FRN
thereafter,
Perpetual
United
States
95,000,000
94,979,964
Senior
Bond,
6.27%
to
11/16/32,
FRN
thereafter,
11/17/33
.....
United
States
85,000,000
89,809,566
Sub.
Bond,
6.174%
to
5/24/33,
FRN
thereafter,
5/25/34
.......
United
States
155,000,000
157,481,614
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Banks
(continued)
Fifth
Third
Bancorp
,
Senior
Note,
6.339%
to
7/26/28,
FRN
thereafter,
7/27/29
......
United
States
20,000,000
$
20,625,120
Senior
Note,
5.631%
to
1/28/31,
FRN
thereafter,
1/29/32
......
United
States
20,000,000
20,033,669
Fifth
Third
Bank
NA
,
Senior
Note
,
5.852%
to
10/26/24,
FRN
thereafter
,
10/27/25
..................................
United
States
65,185,000
65,141,419
JPMorgan
Chase
&
Co.
,
g
NN,
Junior
Sub.
Bond,
6.875%
to
5/31/29,
FRN
thereafter,
Perpetual
.........................................
United
States
50,000,000
51,863,611
g,h
Q,
Junior
Sub.
Bond,
FRN,
8.818%,
(3-month
SOFR
+
3.512%),
Perpetual
.........................................
United
States
60,700,000
60,747,206
g,h
R,
Junior
Sub.
Bond,
FRN,
8.868%,
(
3-month
SOFR
+
3.562%),
Perpetual
.........................................
United
States
55,000,000
55,042,911
g,h
S,
Junior
Sub.
Bond,
FRN,
9.348%,
(3-month
SOFR
+
4.042%),
Perpetual
.........................................
United
States
65,000,000
65,114,530
Senior
Bond,
6.254%
to
10/22/33,
FRN
thereafter,
10/23/34
...
United
States
90,000,000
96,196,348
Senior
Note,
5.04%
to
1/22/27,
FRN
thereafter,
1/23/28
.......
United
States
40,000,000
39,874,556
KeyBank
NA
,
Senior
Note,
5.85%,
11/15/27
..........................
United
States
50,000,000
49,612,347
Sub.
Bond,
4.9%,
8/08/32
.............................
United
States
35,000,000
31,448,156
Morgan
Stanley
Bank
NA
,
Senior
Note
,
4.952%
to
1/13/27,
FRN
thereafter
,
1/14/28
...................................
United
States
55,000,000
54,789,224
PNC
Financial
Services
Group,
Inc.
(The)
,
Senior
Bond,
6.037%
to
10/27/32,
FRN
thereafter,
10/28/33
...
United
States
70,000,000
72,413,647
Senior
Bond,
5.068%
to
1/23/33,
FRN
thereafter,
1/24/34
.....
United
States
40,000,000
38,763,670
Senior
Note,
5.582%
to
6/11/28,
FRN
thereafter,
6/12/29
......
United
States
20,000,000
20,249,499
Royal
Bank
of
Canada
,
Senior
Bond
,
5
%
,
2/01/33
.............
Canada
50,000,000
49,848,652
Truist
Bank
,
Sub.
Bond
,
2.25
%
,
3/11/30
.....................
United
States
42,645,000
35,521,206
Truist
Financial
Corp.
,
Senior
Bond,
5.122%
to
1/25/33,
FRN
thereafter,
1/26/34
.....
United
States
55,000,000
52,963,763
Senior
Note,
6.047%
to
6/07/26,
FRN
thereafter,
6/08/27
......
United
States
45,000,000
45,618,550
Sub.
Bond,
4.916%
to
7/27/32,
FRN
thereafter,
7/28/33
.......
United
States
95,000,000
88,539,266
US
Bancorp
,
Senior
Bond,
5.85%
to
10/20/32,
FRN
thereafter,
10/21/33
....
United
States
45,000,000
45,898,895
Senior
Bond,
5.836%
to
6/09/33,
FRN
thereafter,
6/12/34
.....
United
States
35,000,000
35,687,247
Senior
Note,
5.775%
to
6/11/28,
FRN
thereafter,
6/12/29
......
United
States
40,000,000
40,709,491
Senior
Note,
5.384%
to
1/22/29,
FRN
thereafter,
1/23/30
......
United
States
20,000,000
20,093,524
Wells
Fargo
&
Co.
,
g,h
S,
Junior
Sub.
Bond,
FRN,
5.9%,
Perpetual
................
United
States
60,000,000
59,896,602
Senior
Bond,
4.897%
to
7/24/32,
FRN
thereafter,
7/25/33
.....
United
States
50,000,000
48,199,045
Senior
Bond,
5.557%
to
7/24/33,
FRN
thereafter,
7/25/34
.....
United
States
90,000,000
90,386,617
Senior
Bond,
6.491%
to
10/22/33,
FRN
thereafter,
10/23/34
...
United
States
60,000,000
64,382,798
2,681,191,581
Beverages
0.2%
Coca-Cola
Co.
(The)
,
Senior
Bond
,
1.65
%
,
6/01/30
............
United
States
130,000,000
109,651,582
Constellation
Brands,
Inc.
,
Senior
Bond
,
3.15
%
,
8/01/29
........
United
States
35,000,000
31,890,739
141,542,321
Biotechnology
0.3%
AbbVie,
Inc.
,
Senior
Bond,
4.5%,
5/14/35
............................
United
States
45,000,000
43,285,394
Senior
Note,
3.2%,
11/21/29
...........................
United
States
65,000,000
59,912,469
Amgen,
Inc.
,
Senior
Bond,
2.45%,
2/21/30
...........................
United
States
25,000,000
21,871,507
Senior
Bond,
5.25%,
3/02/33
...........................
United
States
50,000,000
50,443,232
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
57
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Biotechnology
(continued)
Amgen,
Inc.,
(continued)
Senior
Note,
5.25%,
3/02/30
...........................
United
States
20,000,000
$
20,311,555
195,824,157
Broadline
Retail
0.1%
Amazon.com,
Inc.
,
Senior
Bond
,
3.6
%
,
4/13/32
...............
United
States
57,500,000
53,573,690
Building
Products
0.4%
e
AmeriTex
HoldCo
Intermediate
LLC
,
Senior
Secured
Note
,
144A,
10.25
%
,
10/15/28
....................................
United
States
50,000,000
53,745,300
e
Camelot
Return
Merger
Sub,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
8/01/28
.....................................
United
States
47,600,000
48,940,844
Carrier
Global
Corp.
,
Senior
Bond,
2.7%,
2/15/31
............................
United
States
22,500,000
19,375,824
Senior
Note,
2.722%,
2/15/30
..........................
United
States
88,200,000
78,029,660
e
EMRLD
Borrower
LP
/
Emerald
Co-Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
..........................
United
States
50,000,000
50,542,150
Johnson
Controls
International
plc
/
Tyco
Fire
&
Security
Finance
SCA
,
Senior
Bond
,
4.9
%
,
12/01/32
.......................
United
States
39,500,000
38,881,423
289,515,201
Capital
Markets
1.1%
Brookfield
Finance,
Inc.
,
Senior
Bond
,
4.85
%
,
3/29/29
..........
Canada
38,708,000
38,420,326
Charles
Schwab
Corp.
(The)
,
Senior
Bond,
5.853%
to
5/18/33,
FRN
thereafter,
5/19/34
.....
United
States
30,000,000
30,740,777
Senior
Bond,
6.136%
to
8/23/33,
FRN
thereafter,
8/24/34
.....
United
States
30,000,000
31,315,502
Senior
Note,
5.643%
to
5/18/28,
FRN
thereafter,
5/19/29
......
United
States
25,000,000
25,389,837
Senior
Note,
6.196%
to
11/16/28,
FRN
thereafter,
11/17/29
....
United
States
40,000,000
41,594,419
Goldman
Sachs
Group,
Inc.
(The)
,
Senior
Bond,
2.65%
to
10/20/31,
FRN
thereafter,
10/21/32
....
United
States
110,000,000
91,556,333
f
Senior
Bond,
6.561%
to
10/23/33,
FRN
thereafter,
10/24/34
...
United
States
100,000,000
109,143,395
Sub.
Bond,
6.75%,
10/01/37
...........................
United
States
60,000,000
65,582,095
Morgan
Stanley
,
Senior
Bond,
6.342%
to
10/17/32,
FRN
thereafter,
10/18/33
...
United
States
35,000,000
37,463,549
Senior
Bond,
5.25%
to
4/20/33,
FRN
thereafter,
4/21/34
......
United
States
251,000,000
249,126,867
Senior
Bond,
6.627%
to
10/31/33,
FRN
thereafter,
11/01/34
....
United
States
40,000,000
43,786,382
Sub.
Bond,
5.948%
to
1/18/33,
FRN
thereafter,
1/19/38
.......
United
States
67,095,000
67,285,589
831,405,071
Chemicals
1.0%
Celanese
US
Holdings
LLC
,
Senior
Bond,
6.379%,
7/15/32
..........................
United
States
50,000,000
51,912,472
Senior
Note,
6.165%,
7/15/27
..........................
United
States
40,000,000
40,757,987
Senior
Note,
6.55%,
11/15/30
..........................
United
States
20,000,000
21,052,292
e
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
6.5
%
,
5/15/26
Switzerland
114,850,000
107,293,525
e
CVR
Partners
LP
/
CVR
Nitrogen
Finance
Corp.
,
Senior
Secured
Note
,
144A,
6.125
%
,
6/15/28
...........................
United
States
25,000,000
24,051,000
f
Dow
Chemical
Co.
(The)
,
Senior
Bond
,
6.3
%
,
3/15/33
..........
United
States
35,000,000
37,742,458
Huntsman
International
LLC
,
Senior
Bond
,
4.5
%
,
5/01/29
.......
United
States
25,000,000
23,888,208
e
International
Flavors
&
Fragrances,
Inc.
,
Senior
Bond,
144A,
2.3%,
11/01/30
......................
United
States
120,000,000
99,738,819
Senior
Note,
144A,
1.832%,
10/15/27
....................
United
States
20,000,000
17,742,969
e
Olin
Corp.
,
Senior
Note
,
144A,
9.5
%
,
6/01/25
................
United
States
30,000,000
31,023,695
e,f
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
..
United
States
38,000,000
39,465,546
e
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
.....................................
United
States
717,000
702,587
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Chemicals
(continued)
e
SCIH
Salt
Holdings,
Inc.
,
Senior
Note,
144A,
6.625%,
5/01/29
.....................
United
States
112,500,000
$
104,280,818
Senior
Secured
Note,
144A,
4.875%,
5/01/28
..............
United
States
148,000,000
138,030,764
737,683,140
Commercial
Services
&
Supplies
0.3%
e
ADT
Security
Corp.
(The)
,
Senior
Secured
Note
,
144A,
4.125
%
,
8/01/29
...........................................
United
States
20,000,000
18,342,128
e
APX
Group,
Inc.
,
Senior
Note,
144A,
5.75%,
7/15/29
......................
United
States
80,000,000
77,005,240
Senior
Secured
Note,
144A,
6.75%,
2/15/27
...............
United
States
140,000,000
140,667,520
236,014,888
Communications
Equipment
1.0%
e
CommScope
Technologies
LLC
,
Senior
Bond,
144A,
6%,
6/15/25
........................
United
States
326,000,000
283,929,700
Senior
Bond,
144A,
5%,
3/15/27
........................
United
States
55,000,000
21,380,706
e
CommScope,
Inc.
,
Senior
Note,
144A,
8.25%,
3/01/27
......................
United
States
185,000,000
86,789,864
Senior
Note,
144A,
7.125%,
7/01/28
.....................
United
States
200,000,000
79,293,540
Senior
Secured
Note,
144A,
6%,
3/01/26
..................
United
States
224,085,000
205,317,881
Senior
Secured
Note,
144A,
4.75%,
9/01/29
...............
United
States
70,454,000
50,903,015
727,614,706
Construction
&
Engineering
0.1%
Quanta
Services,
Inc.
,
Senior
Bond
,
2.9
%
,
10/01/30
...........
United
States
110,000,000
96,259,740
Consumer
Finance
2.7%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
,
Senior
Bond,
3.3%,
1/30/32
............................
Ireland
50,000,000
42,901,180
Senior
Bond,
5.3%,
1/19/34
............................
Ireland
65,000,000
63,873,755
Senior
Note,
5.75%,
6/06/28
...........................
Ireland
40,000,000
40,551,510
Capital
One
Financial
Corp.
,
Senior
Bond,
3.8%,
1/31/28
............................
United
States
27,300,000
25,969,939
Senior
Bond,
5.268%
to
5/09/32,
FRN
thereafter,
5/10/33
.....
United
States
50,000,000
49,132,860
Senior
Bond,
5.817%
to
1/31/33,
FRN
thereafter,
2/01/34
.....
United
States
85,000,000
84,931,237
Senior
Note,
4.927%
to
5/09/27,
FRN
thereafter,
5/10/28
......
United
States
159,532,733
157,528,574
Senior
Note,
6.312%
to
6/07/28,
FRN
thereafter,
6/08/29
......
United
States
75,000,000
77,129,983
f
Senior
Note,
5.7%
to
1/31/29,
FRN
thereafter,
2/01/30
........
United
States
20,000,000
20,175,209
Senior
Note,
5.247%
to
7/25/29,
FRN
thereafter,
7/26/30
......
United
States
40,000,000
39,387,800
Senior
Note,
7.624%
to
10/29/30,
FRN
thereafter,
10/30/31
....
United
States
40,000,000
44,208,061
Sub.
Bond,
4.2%,
10/29/25
............................
United
States
73,500,000
71,874,074
Sub.
Bond,
3.75%,
7/28/26
............................
United
States
92,800,000
89,430,021
Ford
Motor
Credit
Co.
LLC
,
Senior
Bond,
4.134%,
8/04/25
..........................
United
States
50,000,000
48,887,393
Senior
Bond,
5.113%,
5/03/29
..........................
United
States
85,000,000
82,569,558
Senior
Note,
2.3%,
2/10/25
............................
United
States
35,000,000
33,950,881
Senior
Note,
5.125%,
6/16/25
..........................
United
States
108,015,000
107,079,599
Senior
Note,
3.375%,
11/13/25
.........................
United
States
32,000,000
30,801,071
Senior
Note,
6.95%,
6/10/26
...........................
United
States
35,000,000
35,770,318
Senior
Note,
2.7%,
8/10/26
............................
United
States
60,000,000
55,947,982
Senior
Note,
4.95%,
5/28/27
...........................
United
States
140,000,000
136,665,246
Senior
Note,
6.8%,
5/12/28
............................
United
States
92,000,000
95,629,140
Senior
Note,
7.35%,
3/06/30
...........................
United
States
45,000,000
48,006,157
General
Motors
Financial
Co.,
Inc.
,
Senior
Bond,
4.35%,
1/17/27
...........................
United
States
40,000,000
39,081,945
Senior
Bond,
3.6%,
6/21/30
............................
United
States
37,720,000
34,070,951
Senior
Bond,
3.1%,
1/12/32
............................
United
States
80,000,000
67,793,590
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
59
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Consumer
Finance
(continued)
General
Motors
Financial
Co.,
Inc.,
(continued)
f
Senior
Bond,
6.4%,
1/09/33
............................
United
States
50,000,000
$
52,436,128
Senior
Note,
5%,
4/09/27
.............................
United
States
50,000,000
49,646,021
Senior
Note,
5.8%,
6/23/28
............................
United
States
50,000,000
51,000,318
Senior
Note,
5.8%,
1/07/29
............................
United
States
75,000,000
76,353,022
Senior
Note,
4.3%,
4/06/29
............................
United
States
60,000,000
57,374,017
Senior
Note,
5.85%,
4/06/30
...........................
United
States
20,000,000
20,406,713
John
Deere
Capital
Corp.
,
Senior
Bond
,
4.35
%
,
9/15/32
........
United
States
30,000,000
29,124,204
e
Macquarie
Airfinance
Holdings
Ltd.
,
Senior
Note
,
144A,
6.5
%
,
3/26/31
...........................................
United
Kingdom
15,000,000
15,278,786
1,974,967,243
Consumer
Staples
Distribution
&
Retail
0.2%
e
7-Eleven,
Inc.
,
Senior
Bond
,
144A,
1.8
%
,
2/10/31
.............
United
States
85,000,000
68,309,151
Target
Corp.
,
Senior
Bond
,
4.5
%
,
9/15/32
...................
United
States
80,000,000
78,431,182
146,740,333
Containers
&
Packaging
1.7%
e,i
ARD
Finance
SA
,
Senior
Secured
Note
,
144A,
PIK,
6.5
%
,
6/30/27
.
Luxembourg
25,144,215
8,440,611
e
Ardagh
Metal
Packaging
Finance
USA
LLC
/
Ardagh
Metal
Packaging
Finance
plc
,
Senior
Note,
144A,
4%,
9/01/29
........................
United
States
68,575,000
55,349,379
Senior
Secured
Note,
144A,
6%,
6/15/27
..................
United
States
20,115,000
19,549,239
e
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
362,052,000
228,481,966
Senior
Secured
Note,
144A,
5.25%,
4/30/25
...............
United
States
90,669,000
87,692,790
Senior
Secured
Note,
144A,
4.125%,
8/15/26
..............
United
States
198,500,000
179,824,922
e
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note,
144A,
9.25%,
4/15/27
.....................
United
States
325,000,000
322,778,625
Senior
Secured
Note,
144A,
7.875%,
8/15/26
..............
United
States
255,000,000
259,972,755
e
Pactiv
Evergreen
Group
Issuer,
Inc.
/
Pactiv
Evergreen
Group
Issuer
LLC
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
.............
United
States
55,000,000
51,369,780
e
Sealed
Air
Corp.
,
Senior
Note
,
144A,
6.125
%
,
2/01/28
..........
United
States
20,000,000
20,058,600
1,233,518,667
Diversified
REITs
0.3%
VICI
Properties
LP
,
Senior
Bond,
5.125%,
5/15/32
..........................
United
States
60,000,000
57,449,238
Senior
Bond,
5.75%,
4/01/34
...........................
United
States
20,000,000
19,829,112
Senior
Note,
4.95%,
2/15/30
...........................
United
States
63,357,000
61,316,246
e
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note
,
144A,
4.25
%
,
12/01/26
..........................................
United
States
100,000,000
96,216,730
234,811,326
Diversified
Telecommunication
Services
0.4%
e
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond,
144A,
5.125%,
5/01/27
.....................
United
States
165,000,000
157,315,372
Senior
Bond,
144A,
5%,
2/01/28
........................
United
States
56,000,000
52,167,360
Verizon
Communications,
Inc.
,
Senior
Bond
,
4.016
%
,
12/03/29
...
United
States
50,000,000
47,720,438
257,203,170
Electric
Utilities
2.1%
American
Electric
Power
Co.,
Inc.
,
Senior
Bond,
5.95%,
11/01/32
..........................
United
States
30,000,000
31,217,309
Senior
Bond,
5.625%,
3/01/33
..........................
United
States
30,000,000
30,471,561
Duke
Energy
Corp.
,
Senior
Bond
,
4.5
%
,
8/15/32
..............
United
States
56,891,000
53,966,131
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Electric
Utilities
(continued)
NextEra
Energy
Capital
Holdings,
Inc.
,
Senior
Bond,
5.25%,
3/15/34
...........................
United
States
75,000,000
$
74,862,865
Senior
Note,
1.875%,
1/15/27
..........................
United
States
55,000,000
50,377,498
NRG
Energy,
Inc.
,
e
Senior
Bond,
144A,
3.625%,
2/15/31
.....................
United
States
65,000,000
56,157,908
Senior
Note,
5.75%,
1/15/28
...........................
United
States
18,075,000
17,988,253
e
Senior
Note,
144A,
3.375%,
2/15/29
.....................
United
States
38,300,000
34,061,189
e
Senior
Secured
Bond,
144A,
7%,
3/15/33
.................
United
States
30,000,000
32,040,780
e
Senior
Secured
Note,
144A,
2.45%,
12/02/27
..............
United
States
30,000,000
26,982,094
Pacific
Gas
and
Electric
Co.
,
Senior
Bond,
4.55%,
7/01/30
...........................
United
States
136,500,000
129,822,125
Senior
Bond,
6.15%,
1/15/33
...........................
United
States
50,000,000
51,590,369
Senior
Bond,
6.4%,
6/15/33
............................
United
States
30,000,000
31,623,320
Senior
Note,
4.95%,
6/08/25
...........................
United
States
19,250,000
19,099,249
Senior
Note,
3.15%,
1/01/26
...........................
United
States
50,000,000
48,096,373
Senior
Note,
6.1%,
1/15/29
............................
United
States
49,000,000
50,522,420
PG&E
Corp.
,
Senior
Secured
Note
,
5
%
,
7/01/28
..............
United
States
107,284,000
103,436,442
Southern
Co.
(The)
,
Senior
Bond,
5.7%,
10/15/32
...........................
United
States
45,000,000
46,431,580
Senior
Bond,
5.2%,
6/15/33
............................
United
States
50,000,000
49,990,308
Senior
Note,
4.85%,
6/15/28
...........................
United
States
55,000,000
54,736,333
e
Vistra
Operations
Co.
LLC
,
Senior
Note,
144A,
5.5%,
9/01/26
.......................
United
States
109,160,000
107,557,837
Senior
Note,
144A,
5%,
7/31/27
........................
United
States
62,345,000
60,420,809
Senior
Note,
144A,
4.375%,
5/01/29
.....................
United
States
124,000,000
115,000,663
Senior
Note,
144A,
7.75%,
10/15/31
.....................
United
States
79,000,000
82,792,790
Senior
Secured
Bond,
144A,
4.3%,
7/15/29
................
United
States
35,000,000
32,856,626
Senior
Secured
Bond,
144A,
6.95%,
10/15/33
..............
United
States
75,000,000
80,121,525
Senior
Secured
Note,
144A,
3.55%,
7/15/24
...............
United
States
25,000,000
24,822,584
Senior
Secured
Note,
144A,
3.7%,
1/30/27
................
United
States
33,500,000
31,846,236
1,528,893,177
Electrical
Equipment
0.1%
e
Regal
Rexnord
Corp.
,
Senior
Bond,
144A,
6.4%,
4/15/33
.......................
United
States
60,000,000
62,287,614
Senior
Note,
144A,
6.3%,
2/15/30
.......................
United
States
25,000,000
25,612,959
87,900,573
Electronic
Equipment,
Instruments
&
Components
0.1%
Flex
Ltd.
,
Senior
Note
,
4.75
%
,
6/15/25
.....................
United
States
50,000,000
49,428,773
Energy
Equipment
&
Services
0.5%
e
Schlumberger
Holdings
Corp.
,
Senior
Note
,
144A,
3.9
%
,
5/17/28
..
United
States
42,500,000
40,984,198
e
USA
Compression
Partners
LP
/
USA
Compression
Finance
Corp.
,
Senior
Note
,
144A,
7.125
%
,
3/15/29
......................
United
States
40,000,000
40,523,633
e
Weatherford
International
Ltd.
,
Senior
Note
,
144A,
8.625
%
,
4/30/30
United
States
245,000,000
255,974,530
337,482,361
Entertainment
0.4%
Netflix,
Inc.
,
Senior
Bond,
4.375%,
11/15/26
.........................
United
States
100,000,000
98,515,739
Senior
Bond,
4.875%,
4/15/28
..........................
United
States
89,300,000
89,202,503
Senior
Bond,
5.875%,
11/15/28
.........................
United
States
50,000,000
51,995,653
Warnermedia
Holdings,
Inc.
,
Senior
Note
,
4.279
%
,
3/15/32
......
United
States
60,000,000
53,624,684
293,338,579
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
61
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Financial
Services
0.3%
Fiserv,
Inc.
,
Senior
Bond,
4.2%,
10/01/28
...........................
United
States
52,000,000
$
50,201,736
Senior
Bond,
3.5%,
7/01/29
............................
United
States
40,000,000
37,262,019
Senior
Bond,
2.65%,
6/01/30
...........................
United
States
38,000,000
33,115,285
Senior
Bond,
5.6%,
3/02/33
............................
United
States
30,000,000
30,597,212
e
Woodside
Finance
Ltd.
,
Senior
Bond
,
144A,
4.5
%
,
3/04/29
......
Australia
90,000,000
86,850,874
238,027,126
Food
Products
0.6%
e
Darling
Ingredients,
Inc.
,
Senior
Note
,
144A,
6
%
,
6/15/30
.......
United
States
30,000,000
29,753,496
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
52,567,350
JBS
USA
LUX
SA
/
JBS
USA
Food
Co.
/
JBS
USA
Finance,
Inc.
,
Senior
Note,
5.125%,
2/01/28
..........................
United
States
30,000,000
29,563,689
Senior
Note,
5.75%,
4/01/33
...........................
United
States
110,000,000
108,439,309
Pilgrim's
Pride
Corp.
,
Senior
Bond,
6.25%,
7/01/33
...........................
United
States
68,000,000
69,573,316
Senior
Bond,
6.875%,
5/15/34
..........................
United
States
40,000,000
42,678,040
e
Post
Holdings,
Inc.
,
Senior
Bond,
144A,
5.625%,
1/15/28
.....................
United
States
59,800,000
58,800,790
Senior
Bond,
144A,
4.5%,
9/15/31
.......................
United
States
50,000,000
45,025,105
Senior
Secured
Note,
144A,
6.25%,
2/15/32
...............
United
States
35,000,000
35,298,830
471,699,925
Ground
Transportation
0.3%
e
Ashtead
Capital,
Inc.
,
Senior
Bond,
144A,
4.375%,
8/15/27
.....................
United
Kingdom
34,500,000
33,116,973
Senior
Bond,
144A,
5.55%,
5/30/33
......................
United
Kingdom
55,000,000
54,126,014
Senior
Bond,
144A,
5.95%,
10/15/33
.....................
United
Kingdom
35,000,000
35,411,583
f
Union
Pacific
Corp.
,
Senior
Bond
,
4.5
%
,
1/20/33
..............
United
States
63,000,000
61,427,762
184,082,332
Health
Care
Equipment
&
Supplies
0.7%
e
Bausch
+
Lomb
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
10/01/28
..........................................
United
States
45,000,000
46,615,950
DENTSPLY
SIRONA,
Inc.
,
Senior
Bond
,
3.25
%
,
6/01/30
........
United
States
51,249,000
45,445,295
GE
HealthCare
Technologies,
Inc.
,
WI
,
Senior
Note
,
5.905
%
,
11/22/32
..........................................
United
States
105,000,000
110,303,106
e
Medline
Borrower
LP
,
Senior
Note,
144A,
5.25%,
10/01/29
.....................
United
States
90,000,000
85,134,015
Senior
Secured
Note,
144A,
3.875%,
4/01/29
..............
United
States
280,000,000
255,041,220
542,539,586
Health
Care
Providers
&
Services
7.5%
Centene
Corp.
,
Senior
Bond,
2.5%,
3/01/31
............................
United
States
35,000,000
28,818,391
Senior
Note,
4.25%,
12/15/27
..........................
United
States
81,745,000
78,003,480
Senior
Note,
4.625%,
12/15/29
.........................
United
States
166,100,000
157,810,650
Senior
Note,
3.375%,
2/15/30
..........................
United
States
47,000,000
41,621,870
e
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.875%,
4/15/29
....................
United
States
500,000,000
374,816,000
Secured
Note,
144A,
6.125%,
4/01/30
....................
United
States
600,000,000
433,190,160
Senior
Note,
144A,
6.875%,
4/01/28
.....................
United
States
565,000,000
396,783,962
Senior
Secured
Note,
144A,
8%,
3/15/26
..................
United
States
161,069,000
160,867,825
Senior
Secured
Note,
144A,
5.625%,
3/15/27
..............
United
States
150,000,000
138,219,015
Senior
Secured
Note,
144A,
8%,
12/15/27
.................
United
States
362,000,000
355,504,055
Senior
Secured
Note,
144A,
10.875%,
1/15/32
.............
United
States
395,000,000
407,352,045
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
62
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Health
Care
Providers
&
Services
(continued)
CVS
Health
Corp.
,
Senior
Bond,
4.3%,
3/25/28
............................
United
States
25,000,000
$
24,404,630
Senior
Bond,
1.875%,
2/28/31
..........................
United
States
60,000,000
48,922,060
Senior
Bond,
5.25%,
2/21/33
...........................
United
States
145,000,000
145,098,706
Senior
Bond,
4.78%,
3/25/38
...........................
United
States
61,925,000
57,214,707
Senior
Bond,
5.05%,
3/25/48
...........................
United
States
40,000,000
36,351,234
e
DaVita,
Inc.
,
Senior
Bond,
144A,
3.75%,
2/15/31
......................
United
States
100,000,000
83,812,200
Senior
Note,
144A,
4.625%,
6/01/30
.....................
United
States
313,500,000
280,878,413
e
Fresenius
Medical
Care
US
Finance
III,
Inc.
,
Senior
Bond,
144A,
2.375%,
2/16/31
.....................
Germany
30,000,000
23,660,273
Senior
Bond,
144A,
3%,
12/01/31
.......................
Germany
30,941,000
24,785,393
HCA,
Inc.
,
Senior
Bond,
5.625%,
9/01/28
..........................
United
States
115,000,000
116,464,433
Senior
Bond,
4.125%,
6/15/29
..........................
United
States
38,500,000
36,471,516
Senior
Bond,
2.375%,
7/15/31
..........................
United
States
28,716,000
23,627,733
Senior
Bond,
5.5%,
6/01/33
............................
United
States
80,000,000
80,315,975
Senior
Note,
3.625%,
3/15/32
..........................
United
States
82,954,000
73,463,075
Humana,
Inc.
,
Senior
Bond
,
5.875
%
,
3/01/33
.................
United
States
35,000,000
36,131,740
e,f
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
........
Italy
35,000,000
31,934,805
e
MPH
Acquisition
Holdings
LLC
,
Senior
Note,
144A,
5.75%,
11/01/28
.....................
United
States
140,000,000
110,553,380
Senior
Secured
Note,
144A,
5.5%,
9/01/28
................
United
States
175,000,000
149,004,117
Quest
Diagnostics,
Inc.
,
Senior
Bond
,
2.95
%
,
6/30/30
..........
United
States
58,755,000
52,159,553
Tenet
Healthcare
Corp.
,
Secured
Note,
6.25%,
2/01/27
..........................
United
States
140,000,000
140,053,662
Senior
Bond,
6.875%,
11/15/31
.........................
United
States
55,258,000
57,865,680
Senior
Note,
6.125%,
10/01/28
.........................
United
States
475,000,000
473,694,225
Senior
Secured
Note,
4.25%,
6/01/29
....................
United
States
130,000,000
120,958,448
Senior
Secured
Note,
4.375%,
1/15/30
...................
United
States
32,000,000
29,603,251
Senior
Secured
Note,
6.125%,
6/15/30
...................
United
States
396,000,000
395,586,576
e
Senior
Secured
Note,
144A,
6.75%,
5/15/31
...............
United
States
159,775,000
162,887,417
UnitedHealth
Group,
Inc.
,
Senior
Bond
,
5.35
%
,
2/15/33
.........
United
States
125,000,000
128,641,882
5,517,532,537
Health
Care
Technology
0.1%
e,i
Multiplan
Corp.
,
Senior
Note
,
144A,
PIK,
6
%
,
10/15/27
.........
United
States
100,000,000
70,997,680
Hotels,
Restaurants
&
Leisure
2.8%
e
Caesars
Entertainment,
Inc.
,
Senior
Note,
144A,
8.125%,
7/01/27
.....................
United
States
99,750,000
102,225,396
f
Senior
Note,
144A,
4.625%,
10/15/29
....................
United
States
115,000,000
104,957,154
Senior
Secured
Note,
144A,
6.25%,
7/01/25
...............
United
States
194,759,000
194,966,613
Senior
Secured
Note,
144A,
7%,
2/15/30
..................
United
States
52,000,000
53,409,720
Senior
Secured
Note,
144A,
6.5%,
2/15/32
................
United
States
45,000,000
45,424,395
e
Carnival
Corp.
,
Senior
Note,
144A,
7.625%,
3/01/26
.....................
United
States
150,000,000
151,865,850
Senior
Note,
144A,
5.75%,
3/01/27
......................
United
States
215,000,000
212,927,507
Senior
Note,
144A,
10.5%,
6/01/30
......................
United
States
65,000,000
71,142,565
e
Everi
Holdings,
Inc.
,
Senior
Note
,
144A,
5
%
,
7/15/29
...........
United
States
15,000,000
14,871,158
Expedia
Group,
Inc.
,
Senior
Bond,
3.8%,
2/15/28
............................
United
States
57,000,000
54,242,138
Senior
Note,
5%,
2/15/26
.............................
United
States
30,000,000
29,839,535
Senior
Note,
3.25%,
2/15/30
...........................
United
States
60,000,000
54,028,871
e
Senior
Note,
144A,
6.25%,
5/01/25
......................
United
States
54,596,000
54,844,562
e
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note,
144A,
6.75%,
1/15/30
......................
United
States
75,000,000
67,404,915
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
63
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
e
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.,
(continued)
Senior
Secured
Note,
144A,
4.625%,
1/15/29
..............
United
States
155,000,000
$
142,282,405
e
Hilton
Domestic
Operating
Co.,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
4/01/32
...........................................
United
States
40,000,000
40,195,764
Marriott
International,
Inc.
,
Senior
Note,
5%,
10/15/27
............................
United
States
25,000,000
24,933,516
Senior
Note,
4.9%,
4/15/29
............................
United
States
20,000,000
19,850,139
McDonald's
Corp.
,
Senior
Bond
,
4.6
%
,
9/09/32
...............
United
States
40,000,000
39,380,771
e
Penn
Entertainment,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
7/01/29
...
United
States
40,000,000
34,427,018
e
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp.
,
Senior
Bond,
144A,
5.5%,
3/01/25
.......................
United
States
367,152,000
366,290,184
Senior
Bond,
144A,
5.25%,
5/15/27
......................
United
States
150,000,000
147,007,980
e
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.125
%
,
2/15/31
...........................
United
States
30,000,000
31,065,630
2,057,583,786
Household
Durables
0.2%
KB
Home
,
Senior
Note
,
7.25
%
,
7/15/30
.....................
United
States
20,000,000
20,721,980
Lennar
Corp.
,
Senior
Note
,
4.5
%
,
4/30/24
...................
United
States
44,675,000
44,624,919
Shea
Homes
LP
/
Shea
Homes
Funding
Corp.
,
Senior
Note,
4.75%,
2/15/28
...........................
United
States
34,630,000
32,971,278
Senior
Note,
4.75%,
4/01/29
...........................
United
States
49,895,000
47,073,044
145,391,221
Household
Products
0.1%
e
Energizer
Holdings,
Inc.
,
Senior
Note,
144A,
6.5%,
12/31/27
......................
United
States
20,000,000
19,909,156
Senior
Note,
144A,
4.75%,
6/15/28
......................
United
States
24,000,000
22,251,446
42,160,602
Independent
Power
and
Renewable
Electricity
Producers
0.4%
e
Calpine
Corp.
,
Senior
Note,
144A,
5.125%,
3/15/28
.....................
United
States
142,000,000
136,403,567
Senior
Secured
Note,
144A,
4.5%,
2/15/28
................
United
States
100,000,000
94,925,300
e,g
Vistra
Corp.
,
Junior
Sub.
Bond
,
144A,
7%
to
12/14/26,
FRN
thereafter
,
Perpetual
.................................
United
States
90,000,000
89,202,663
320,531,530
Insurance
0.2%
e
Five
Corners
Funding
Trust
III
,
Senior
Note
,
144A,
5.791
%
,
2/15/33
United
States
30,000,000
30,957,353
e
Northwestern
Mutual
Global
Funding
,
Secured
Note
,
144A,
4.35
%
,
9/15/27
...........................................
United
States
40,000,000
39,177,603
Prudential
Financial,
Inc.
,
Junior
Sub.
Bond
,
5.7%
to
9/14/28,
FRN
thereafter
,
9/15/48
...................................
United
States
65,000,000
64,387,551
134,522,507
Interactive
Media
&
Services
0.1%
Meta
Platforms,
Inc.
,
Senior
Note
,
3.85
%
,
8/15/32
.............
United
States
55,000,000
51,565,000
e
ZipRecruiter,
Inc.
,
Senior
Note
,
144A,
5
%
,
1/15/30
.............
United
States
30,000,000
26,449,797
78,014,797
IT
Services
0.1%
Twilio,
Inc.
,
Senior
Bond,
3.875%,
3/15/31
..........................
United
States
40,000,000
34,955,992
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
IT
Services
(continued)
Twilio,
Inc.,
(continued)
Senior
Note,
3.625%,
3/15/29
..........................
United
States
45,000,000
$
40,516,794
75,472,786
Machinery
0.1%
Parker-Hannifin
Corp.
,
Senior
Bond
,
3.25
%
,
6/14/29
...........
United
States
33,000,000
30,585,740
e
TK
Elevator
US
Newco,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
7/15/27
...........................................
Germany
35,000,000
33,852,865
64,438,605
Media
0.8%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
,
Senior
Secured
Note
,
4.908
%
,
7/23/25
.....
United
States
150,000,000
148,215,073
e
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
179,000,000
156,913,190
Senior
Secured
Note,
144A,
5.125%,
8/15/27
..............
United
States
90,000,000
84,904,227
e
Stagwell
Global
LLC
,
Senior
Note
,
144A,
5.625
%
,
8/15/29
.......
United
States
55,000,000
49,991,260
e
Univision
Communications,
Inc.
,
Senior
Secured
Note,
144A,
6.625%,
6/01/27
..............
United
States
60,000,000
58,735,194
Senior
Secured
Note,
144A,
8%,
8/15/28
..................
United
States
30,000,000
30,582,630
Senior
Secured
Note,
144A,
7.375%,
6/30/30
..............
United
States
20,000,000
19,793,326
549,134,900
Metals
&
Mining
1.1%
e
Alcoa
Nederland
Holding
BV
,
Senior
Note,
144A,
5.5%,
12/15/27
......................
United
States
104,742,000
103,824,991
Senior
Note,
144A,
4.125%,
3/31/29
.....................
United
States
101,547,000
93,327,086
ArcelorMittal
SA
,
Senior
Bond,
6.8%,
11/29/32
...........................
Luxembourg
55,000,000
58,866,403
Senior
Note,
6.55%,
11/29/27
..........................
Luxembourg
25,000,000
25,956,109
e
Cleveland-Cliffs,
Inc.
,
Senior
Bond,
144A,
4.875%,
3/01/31
.....................
United
States
25,000,000
22,759,530
Senior
Secured
Note,
144A,
6.75%,
3/15/26
...............
United
States
50,000,000
50,870,850
e
First
Quantum
Minerals
Ltd.
,
Senior
Note
,
144A,
8.625
%
,
6/01/31
.
Zambia
8,000,000
7,786,644
e
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond,
144A,
4.375%,
4/01/31
.....................
Australia
150,000,000
134,163,885
Senior
Bond,
144A,
6.125%,
4/15/32
.....................
Australia
22,500,000
22,271,496
Senior
Note,
144A,
4.5%,
9/15/27
.......................
Australia
16,000,000
15,383,037
Senior
Note,
144A,
5.875%,
4/15/30
.....................
Australia
50,000,000
49,239,010
Freeport-McMoRan,
Inc.
,
Senior
Bond,
5.25%,
9/01/29
...........................
United
States
61,402,000
61,483,603
Senior
Bond,
5.4%,
11/14/34
...........................
United
States
35,000,000
34,604,392
e
Glencore
Funding
LLC
,
Senior
Bond
,
144A,
2.5
%
,
9/01/30
......
Australia
100,000,000
84,962,140
e
Mineral
Resources
Ltd.
,
Senior
Note,
144A,
8%,
11/01/27
........................
Australia
20,000,000
20,428,738
f
Senior
Note,
144A,
8.5%,
5/01/30
.......................
Australia
35,000,000
36,088,395
822,016,309
Multi-Utilities
0.2%
Dominion
Energy,
Inc.
,
A,
Senior
Note,
4.35%,
8/15/32
.........................
United
States
30,000,000
28,359,114
C,
Senior
Note,
3.375%,
4/01/30
........................
United
States
30,000,000
27,280,897
NiSource,
Inc.
,
Senior
Bond
,
3.6
%
,
5/01/30
..................
United
States
33,750,000
31,106,757
Sempra
,
Senior
Bond
,
5.5
%
,
8/01/33
.......................
United
States
35,000,000
35,117,213
Southern
Co.
Gas
Capital
Corp.
,
Senior
Bond
,
5.15
%
,
9/15/32
...
United
States
40,000,000
40,194,953
162,058,934
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
65
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
2.6%
BP
Capital
Markets
America,
Inc.
,
Senior
Bond,
4.234%,
11/06/28
.........................
United
States
28,705,000
$
28,108,156
Senior
Bond,
3.633%,
4/06/30
..........................
United
States
46,500,000
43,828,045
Senior
Bond,
2.721%,
1/12/32
..........................
United
States
25,000,000
21,549,725
e
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note,
144A,
11%,
4/15/25
........................
United
States
255,000,000
254,847,974
Senior
Note,
144A,
8.125%,
1/15/27
.....................
United
States
95,000,000
92,711,478
Senior
Note,
144A,
9.75%,
7/15/28
......................
United
States
69,000,000
68,567,239
Senior
Secured
Note,
144A,
9.25%,
7/15/29
...............
United
States
140,000,000
144,249,462
Cheniere
Corpus
Christi
Holdings
LLC
,
Senior
Secured
Note,
5.125%,
6/30/27
...................
United
States
87,973,000
87,792,212
Senior
Secured
Note,
3.7%,
11/15/29
....................
United
States
107,245,000
99,808,341
Cheniere
Energy
Partners
LP
,
Senior
Note
,
5.95
%
,
6/30/33
......
United
States
30,000,000
30,696,090
e
Cheniere
Energy,
Inc.
,
Senior
Bond
,
144A,
5.65
%
,
4/15/34
......
United
States
40,000,000
40,310,631
Chevron
Corp.
,
Senior
Bond
,
2.236
%
,
5/11/30
................
United
States
30,000,000
26,256,175
e
CITGO
Petroleum
Corp.
,
Senior
Secured
Note,
144A,
7%,
6/15/25
..................
United
States
33,224,000
33,203,338
Senior
Secured
Note,
144A,
6.375%,
6/15/26
..............
United
States
30,000,000
30,110,640
e
Civitas
Resources,
Inc.
,
Senior
Note
,
144A,
8.75
%
,
7/01/31
......
United
States
25,000,000
26,782,750
Energy
Transfer
LP
,
Senior
Bond,
5.75%,
2/15/33
...........................
United
States
30,000,000
30,496,970
Senior
Bond,
6.55%,
12/01/33
..........................
United
States
25,000,000
26,852,938
e
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Note
,
144A,
6
%
,
4/15/30
...........................................
United
States
25,000,000
24,500,953
Kinder
Morgan,
Inc.
,
Senior
Bond,
5.2%,
6/01/33
............................
United
States
87,000,000
85,725,132
Senior
Bond,
5.4%,
2/01/34
............................
United
States
50,000,000
49,818,210
Senior
Note,
5%,
2/01/29
.............................
United
States
40,000,000
39,860,273
e
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
........
United
States
10,000,000
9,790,562
e
Matador
Resources
Co.
,
Senior
Note
,
144A,
6.5
%
,
4/15/32
......
United
States
35,000,000
35,086,198
Occidental
Petroleum
Corp.
,
Senior
Bond,
6.625%,
9/01/30
..........................
United
States
80,000,000
84,844,800
Senior
Bond,
6.125%,
1/01/31
..........................
United
States
52,000,000
53,901,640
Senior
Note,
5.5%,
12/01/25
...........................
United
States
30,000,000
30,001,689
Senior
Note,
6.375%,
9/01/28
..........................
United
States
60,000,000
62,359,381
e
Tennessee
Gas
Pipeline
Co.
LLC
,
Senior
Bond
,
144A,
2.9
%
,
3/01/30
United
States
40,050,000
35,093,070
e
Venture
Global
LNG,
Inc.
,
Senior
Secured
Note
,
144A,
8.125
%
,
6/01/28
...........................................
United
States
60,000,000
61,248,660
Williams
Cos.,
Inc.
(The)
,
Senior
Bond,
3.5%,
11/15/30
...........................
United
States
130,000,000
118,237,356
Senior
Bond,
2.6%,
3/15/31
............................
United
States
61,000,000
52,007,599
Senior
Bond,
4.65%,
8/15/32
...........................
United
States
45,000,000
43,391,574
Senior
Bond,
5.65%,
3/15/33
...........................
United
States
55,000,000
56,451,582
1,928,490,843
Passenger
Airlines
1.6%
e
American
Airlines
Group,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
3/01/25
.
United
States
64,000,000
62,277,645
e
American
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
8.5
%
,
5/15/29
United
States
75,000,000
79,281,150
e
American
Airlines,
Inc.
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note,
144A,
5.5%,
4/20/26
................
United
States
193,500,000
192,303,164
Senior
Secured
Note,
144A,
5.75%,
4/20/29
...............
United
States
152,850,000
150,366,234
e
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note,
144A,
4.5%,
10/20/25
...............
United
States
54,618,854
54,074,105
Senior
Secured
Note,
144A,
4.75%,
10/20/28
..............
United
States
341,718,000
334,333,235
e
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets
Ltd.
,
Senior
Secured
Note
,
144A,
6.5
%
,
6/20/27
.......
United
States
127,075,000
127,876,335
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
66
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Passenger
Airlines
(continued)
e
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
..............
United
States
69,462,000
$
67,198,463
Senior
Secured
Note,
144A,
4.625%,
4/15/29
..............
United
States
136,643,000
127,230,360
1,194,940,691
Personal
Care
Products
0.2%
e
BellRing
Brands,
Inc.
,
Senior
Note
,
144A,
7
%
,
3/15/30
.........
United
States
30,000,000
30,936,960
Haleon
US
Capital
LLC
,
Senior
Note,
3.375%,
3/24/29
..........................
United
States
30,000,000
27,914,789
Senior
Note,
3.625%,
3/24/32
..........................
United
States
65,043,000
58,655,195
117,506,944
Pharmaceuticals
2.3%
e
1375209
BC
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
1/30/28
......
Canada
467,060,000
458,226,840
e
Bausch
Health
Cos.,
Inc.
,
Secured
Note,
144A,
14%,
10/15/30
.....................
United
States
164,340,000
95,364,887
Senior
Secured
Note,
144A,
6.125%,
2/01/27
..............
United
States
165,000,000
102,967,425
Senior
Secured
Note,
144A,
11%,
9/30/28
.................
United
States
710,000,000
475,700,000
Bristol-Myers
Squibb
Co.
,
Senior
Note
,
3.9
%
,
2/20/28
..........
United
States
20,000,000
19,429,558
e,j
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
10/15/24
..........................
United
States
47,500,000
31,112,500
e,f,j
Endo
Luxembourg
Finance
Co.
I
SARL
/
Endo
US,
Inc.
,
Senior
Secured
Note
,
144A,
6.125
%
,
4/01/29
....................
United
States
66,355,000
43,196,773
e,j
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
8.5
%
,
4/01/27
United
States
193,401,000
127,859,204
Royalty
Pharma
plc
,
Senior
Bond,
2.15%,
9/02/31
...........................
United
States
35,000,000
28,225,873
Senior
Note,
2.2%,
9/02/30
............................
United
States
35,000,000
29,096,461
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note,
7.125%,
1/31/25
..........................
Israel
27,220,000
27,393,391
Senior
Note,
6.75%,
3/01/28
...........................
Israel
26,000,000
26,653,094
Senior
Note,
7.875%,
9/15/29
..........................
Israel
25,000,000
26,866,475
Senior
Note,
8.125%,
9/15/31
..........................
Israel
30,000,000
32,941,470
Utah
Acquisition
Sub,
Inc.
,
Senior
Note
,
3.95
%
,
6/15/26
.........
United
States
115,500,000
111,620,196
Viatris,
Inc.
,
Senior
Note
,
2.7
%
,
6/22/30
.....................
United
States
40,000,000
33,933,916
1,670,588,063
Semiconductors
&
Semiconductor
Equipment
1.0%
Broadcom,
Inc.
,
Senior
Bond,
4.15%,
11/15/30
..........................
United
States
20,000,000
18,921,134
Senior
Bond,
4.3%,
11/15/32
...........................
United
States
140,000,000
131,595,880
e
Senior
Bond,
144A,
2.45%,
2/15/31
......................
United
States
80,000,000
67,476,073
e
Senior
Bond,
144A,
4.15%,
4/15/32
......................
United
States
35,000,000
32,483,238
e
Senior
Bond,
144A,
3.469%,
4/15/34
.....................
United
States
66,000,000
56,579,182
e
Senior
Note,
144A,
4%,
4/15/29
........................
United
States
48,307,000
46,036,532
e
Entegris,
Inc.
,
Senior
Secured
Note
,
144A,
4.75
%
,
4/15/29
......
United
States
60,000,000
57,567,654
Intel
Corp.
,
Senior
Bond,
5.2%,
2/10/33
............................
United
States
25,000,000
25,357,516
Senior
Note,
5.125%,
2/10/30
..........................
United
States
30,000,000
30,471,262
Micron
Technology,
Inc.
,
Senior
Bond,
5.327%,
2/06/29
..........................
United
States
25,000,000
25,236,502
Senior
Bond,
4.663%,
2/15/30
..........................
United
States
34,000,000
33,226,114
Senior
Bond,
5.875%,
2/09/33
..........................
United
States
40,000,000
41,409,143
Senior
Note,
6.75%,
11/01/29
..........................
United
States
55,000,000
59,059,479
NXP
BV
/
NXP
Funding
LLC
,
Senior
Note
,
5.55
%
,
12/01/28
......
China
20,000,000
20,321,832
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA,
Inc.
,
Senior
Note
,
3.4
%
,
5/01/30
...........................................
China
31,200,000
28,332,263
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
67
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Semiconductors
&
Semiconductor
Equipment
(continued)
e
Qorvo,
Inc.
,
Senior
Bond
,
144A,
3.375
%
,
4/01/31
.............
United
States
30,800,000
$
26,516,145
700,589,949
Software
0.9%
e
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
............
United
States
55,000,000
50,497,782
Oracle
Corp.
,
Senior
Bond,
2.65%,
7/15/26
...........................
United
States
100,000,000
94,660,758
Senior
Bond,
3.25%,
11/15/27
..........................
United
States
40,000,000
37,662,362
Senior
Bond,
2.95%,
4/01/30
...........................
United
States
44,000,000
39,170,128
Senior
Bond,
3.25%,
5/15/30
...........................
United
States
10,000,000
9,074,092
Senior
Bond,
2.875%,
3/25/31
..........................
United
States
101,000,000
87,866,682
Senior
Bond,
6.25%,
11/09/32
..........................
United
States
95,000,000
101,689,276
Senior
Note,
6.15%,
11/09/29
..........................
United
States
20,000,000
21,088,430
Roper
Technologies,
Inc.
,
Senior
Bond,
2%,
6/30/30
.............................
United
States
30,303,000
25,336,552
Senior
Bond,
1.75%,
2/15/31
...........................
United
States
20,000,000
16,110,574
Workday,
Inc.
,
Senior
Bond
,
3.8
%
,
4/01/32
..................
United
States
190,000,000
173,106,156
656,262,792
Specialized
REITs
0.6%
American
Tower
Corp.
,
Senior
Bond,
3.55%,
7/15/27
...........................
United
States
40,000,000
38,071,360
Senior
Bond,
2.9%,
1/15/30
............................
United
States
30,000,000
26,395,429
Senior
Bond,
5.65%,
3/15/33
...........................
United
States
105,000,000
106,687,435
Senior
Note,
5.5%,
3/15/28
............................
United
States
20,000,000
20,178,406
Senior
Note,
4.05%,
3/15/32
...........................
United
States
30,000,000
27,471,179
Crown
Castle,
Inc.
,
Senior
Bond,
3.3%,
7/01/30
............................
United
States
74,583,000
66,334,547
Senior
Bond,
5.1%,
5/01/33
............................
United
States
60,000,000
58,545,993
e
Iron
Mountain,
Inc.
,
Senior
Note
,
144A,
4.875
%
,
9/15/27
........
United
States
65,000,000
62,896,996
Weyerhaeuser
Co.
,
Senior
Bond
,
3.375
%
,
3/09/33
............
United
States
42,300,000
36,970,082
443,551,427
Specialty
Retail
0.8%
AutoNation,
Inc.
,
Senior
Bond,
4.75%,
6/01/30
...........................
United
States
40,959,000
39,360,735
Senior
Bond,
2.4%,
8/01/31
............................
United
States
44,451,000
35,839,553
Senior
Bond,
3.85%,
3/01/32
...........................
United
States
32,953,000
29,312,919
Senior
Note,
1.95%,
8/01/28
...........................
United
States
34,000,000
29,480,927
Bath
&
Body
Works,
Inc.
,
Senior
Bond
,
6.875
%
,
11/01/35
.......
United
States
40,000,000
40,933,360
Home
Depot,
Inc.
(The)
,
Senior
Bond,
1.375%,
3/15/31
..........................
United
States
40,000,000
31,999,980
Senior
Bond,
5.875%,
12/16/36
.........................
United
States
20,000,000
21,491,779
Senior
Note,
4.5%,
9/15/32
............................
United
States
40,000,000
39,303,725
Lowe's
Cos.,
Inc.
,
Senior
Bond,
3.65%,
4/05/29
...........................
United
States
20,000,000
18,974,851
Senior
Bond,
4.5%,
4/15/30
............................
United
States
25,000,000
24,457,672
Senior
Bond,
2.625%,
4/01/31
..........................
United
States
40,000,000
34,435,959
Senior
Bond,
3.75%,
4/01/32
...........................
United
States
88,000,000
80,866,739
Senior
Bond,
5%,
4/15/33
.............................
United
States
115,000,000
114,610,302
f
Senior
Bond,
5.15%,
7/01/33
...........................
United
States
35,000,000
35,290,759
TJX
Cos.,
Inc.
(The)
,
Senior
Bond
,
1.6
%
,
5/15/31
.............
United
States
30,000,000
24,340,760
600,700,020
Technology
Hardware,
Storage
&
Peripherals
0.5%
f
Apple,
Inc.
,
Senior
Bond
,
4.3
%
,
5/10/33
.....................
United
States
50,000,000
49,804,173
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
68
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Technology
Hardware,
Storage
&
Peripherals
(continued)
Dell
International
LLC
/
EMC
Corp.
,
f
Senior
Bond,
5.75%,
2/01/33
...........................
United
States
40,000,000
$
41,422,617
Senior
Note,
5.3%,
10/01/29
...........................
United
States
55,000,000
55,692,516
HP,
Inc.
,
Senior
Bond,
5.5%,
1/15/33
............................
United
States
70,000,000
70,811,448
Senior
Note,
4%,
4/15/29
.............................
United
States
150,000,000
143,388,538
361,119,292
Textiles,
Apparel
&
Luxury
Goods
0.1%
e,f
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/31
............
United
States
24,200,000
24,883,529
Tapestry,
Inc.
,
Senior
Bond
,
7.85
%
,
11/27/33
.................
United
States
30,000,000
32,585,068
57,468,597
Tobacco
0.8%
BAT
Capital
Corp.
,
Senior
Bond,
2.726%,
3/25/31
..........................
United
Kingdom
25,000,000
21,035,890
Senior
Bond,
6.421%,
8/02/33
..........................
United
Kingdom
53,500,000
56,002,948
Senior
Bond,
6%,
2/20/34
.............................
United
Kingdom
40,000,000
40,527,843
Senior
Note,
3.557%,
8/15/27
..........................
United
Kingdom
296,500,000
280,862,364
Senior
Note,
2.259%,
3/25/28
..........................
United
Kingdom
37,812,000
33,680,282
Philip
Morris
International,
Inc.
,
Senior
Bond,
5.75%,
11/17/32
..........................
United
States
41,000,000
42,355,590
Senior
Bond,
5.375%,
2/15/33
..........................
United
States
70,000,000
70,605,041
Senior
Bond,
5.625%,
9/07/33
..........................
United
States
25,000,000
25,581,138
570,651,096
Trading
Companies
&
Distributors
0.4%
United
Rentals
North
America,
Inc.
,
Senior
Bond,
4.875%,
1/15/28
..........................
United
States
160,000,000
155,832,064
Senior
Bond,
3.875%,
2/15/31
..........................
United
States
50,000,000
44,849,230
Senior
Bond,
3.75%,
1/15/32
...........................
United
States
31,000,000
27,094,639
e
Senior
Secured
Note,
144A,
6%,
12/15/29
.................
United
States
65,000,000
65,502,190
e
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.125
%
,
6/15/25
...
United
States
25,000,000
25,036,081
318,314,204
Water
Utilities
0.1%
American
Water
Capital
Corp.
,
Senior
Bond
,
4.45
%
,
6/01/32
.....
United
States
40,336,000
38,910,342
Wireless
Telecommunication
Services
0.6%
Sprint
LLC
,
Senior
Note,
7.125%,
6/15/24
..........................
United
States
190,650,000
191,095,740
Senior
Note,
7.625%,
3/01/26
..........................
United
States
86,300,000
89,216,854
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
72,000,000
71,850,024
T-Mobile
USA,
Inc.
,
Senior
Bond,
5.2%,
1/15/33
............................
United
States
45,000,000
45,069,157
Senior
Note,
3.375%,
4/15/29
..........................
United
States
68,000,000
62,943,221
460,174,996
Total
Corporate
Bonds
(Cost
$35,532,159,006)
..................................
35,078,402,841
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
69
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
k
Senior
Floating
Rate
Interests
0.4%
Chemicals
0.0%
l
SCIH
Salt
Holdings,
Inc.
,
First
Lien,
Incremental
CME
Term
Loan,
B1
,
9.441
%
,
(
1-month
SOFR
+
4
%
),
3/16/27
...............
United
States
19,813,527
$
19,872,076
Software
0.4%
l
TIBCO
Software,
Inc.
,
First
Lien,
CME
Term
Loan,
A
,
9.909
%
,
(
3-month
SOFR
+
4.5
%
),
9/29/28
........................
United
States
247,195,921
246,526,020
Total
Senior
Floating
Rate
Interests
(Cost
$240,268,322)
.........................
266,398,096
U.S.
Government
and
Agency
Securities
11.5%
U.S.
Treasury
Bonds
,
3.375%,
8/15/42
.....................................
United
States
600,000,000
518,449,218
3.875%,
5/15/43
.....................................
United
States
250,000,000
230,810,547
4.125%,
8/15/53
.....................................
United
States
1,500,000,000
1,442,109,375
U.S.
Treasury
Notes
,
4.25%,
10/15/25
.....................................
United
States
500,000,000
495,957,030
4.125%,
10/31/27
....................................
United
States
1,250,000,000
1,240,332,025
4%,
10/31/29
.......................................
United
States
1,000,000,000
988,398,440
2.75%,
8/15/32
.....................................
United
States
2,250,000,000
2,018,408,198
3.875%,
8/15/33
.....................................
United
States
1,500,000,000
1,460,507,820
Total
U.S.
Government
and
Agency
Securities
(Cost
$8,483,228,390)
..............
8,394,972,653
Asset-Backed
Securities
0.1%
Passenger
Airlines
0.1%
United
Airlines
Pass-Through
Trust
,
2020-1,
A,
5.875%,
10/15/27
...........................
United
States
59,897,083
59,760,542
2023-1,
A,
5.8%,
1/15/36
..............................
United
States
50,000,000
51,032,360
110,792,902
a
a
a
a
a
a
Total
Asset-Backed
Securities
(Cost
$109,702,418)
..............................
110,792,902
Mortgage-Backed
Securities
0.4%
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
0.1%
FHLMC
Pool,
30
Year,
5.5%,
6/01/53
.......................
United
States
84,018,110
83,627,484
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
0.2%
FNMA,
30
Year,
4%,
8/01/49
.............................
United
States
24,536,587
23,191,699
FNMA,
30
Year,
5.5%,
7/01/53
...........................
United
States
83,971,293
83,580,724
106,772,423
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
0.1%
GNMA
II,
Single-family,
30
Year,
5.5%,
5/20/53
...............
United
States
83,630,663
83,608,330
Total
Mortgage-Backed
Securities
(Cost
$266,564,624)
...........................
274,008,237
Total
Long
Term
Investments
(Cost
$70,200,204,071)
............................
71,739,532,302
a
Short
Term
Investments
1.0%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
0.9%
c,m
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
....
United
States
666,943,687
666,943,687
Total
Money
Market
Funds
(Cost
$666,943,687)
.................................
666,943,687
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
70
Short
Term
Investments
(continued)
a
a
Country
Shares
a
Value
a
a
a
a
a
a
n
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
Money
Market
Funds
0.1%
c,m
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
....
United
States
91,213,000
$
91,213,000
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$91,213,000)
...........................................................
91,213,000
Total
Short
Term
Investments
(Cost
$758,156,687
)
...............................
758,156,687
a
Total
Investments
(Cost
$70,958,360,758)
99.2%
................................
$72,497,688,989
Options
Written
(0.1)%
.......................................................
(75,211,500)
Other
Assets,
less
Liabilities
0.9%
.............................................
657,817,081
Net
Assets
100.0%
...........................................................
$73,080,294,570
a
a
a
Number
of
Contracts
Notional
Amount
#
o
Options
Written
(0.1)%
Calls
-
Exchange-Traded
Equity
Options
Bank
of
America
Corp.,
April
Strike
Price
$35.00,
Expires
4/19/24
.
20,000
75,840,000
(6,400,000)
Barrick
Gold
Corp.,
May
Strike
Price
$17.00,
Expires
5/17/24
....
20,000
33,280,000
(1,360,000)
Chevron
Corp.,
April
Strike
Price
$165.00,
Expires
4/19/24
......
10,000
157,740,000
(410,000)
Chevron
Corp.,
June
Strike
Price
$165.00,
Expires
6/21/24
......
10,000
157,740,000
(3,000,000)
CVS
Health
Corp.,
May
Strike
Price
$80.00,
Expires
5/17/24
.....
10,000
79,760,000
(2,610,000)
Dominion
Energy,
Inc.,
April
Strike
Price
$52.50
,
Expires
4/19/24
..
15,000
73,785,000
(150,000)
Duke
Energy
Corp.,
April
Strike
Price
$105.00,
Expires
4/19/24
...
5,000
48,355,000
Exxon
Mobil
Corp.,
May
Strike
Price
$115.00,
Expires
5/17/24
....
10,000
116,240,000
(4,350,000)
Fifth
Third
Bancorp,
April
Strike
Price
$35.00,
Expires
4/19/24
....
10,000
37,210,000
(2,670,000)
Fifth
Third
Bancorp,
April
Strike
Price
$38.00,
Expires
4/19/24
....
10,000
37,210,000
(750,000)
Intel
Corp.,
April
Strike
Price
$55.00
,
Expires
4/19/24
...........
10,000
44,170,000
(40,000)
Johnson
&
Johnson,
May
Strike
Price
$170.00,
Expires
5/17/24
...
10,000
158,190,000
(490,000)
Lockheed
Martin
Corp.,
April
Strike
Price
$450.00,
Expires
4/19/24
2,500
113,717,500
(
2,542,500)
LyondellBasell
Industries
NV,
June
Strike
Price
$105.00,
Expires
6/21/24
...........................................
5,000
51,140,000
(1,325,000)
Morgan
Stanley,
May
Strike
Price
$92.50,
Expires
5/17/24
.......
10,000
94,160,000
(4,300,000)
NextEra
Energy,
Inc.,
May
Strike
Price
$60.00,
Expires
5/17/24
...
10,000
63,910,000
(5,300,000)
NextEra
Energy,
Inc.,
June
Strike
Price
$65.00,
Expires
6/21/24
..
10,000
63,910,000
(2,710,000)
Rio
Tinto
plc,
April
Strike
Price
$80.00
,
Expires
4/19/24
.........
10,000
63,740,000
Target
Corp.,
April
Strike
Price
$160.00,
Expires
4/19/24
........
10,000
177,210,000
(17,800,000)
UnitedHealth
Group,
Inc.,
May
Strike
Price
$530.00,
Expires
5/17/24
1,500
74,205,000
(720,000)
(56,927,500)
Puts
-
Exchange-Traded
Equity
Options
Abbott
Laboratories,
Inc.,
April
Strike
Price
$105.00,
Expires
4/19/24
10,000
113,660,000
(330,000)
Albemarle
Corp.,
April
Strike
Price
$110.00,
Expires
4/19/24
.....
5,000
65,870,000
(190,000)
Alphabet,
Inc.,
May
Strike
Price
$125.00,
Expires
5/17/24
.......
5,000
75,465,000
(275,000)
Alphabet,
Inc.,
April
Strike
Price
$135.00,
Expires
4/19/24
.......
10,000
150,930,000
(180,000)
Amgen,
Inc.,
April
Strike
Price
$265.00,
Expires
4/19/24
........
10,000
284,320,000
(590,000)
Analog
Devices,
Inc.,
April
Strike
Price
$175.00,
Expires
4/19/24
..
5,000
98,895,000
(85,000)
Apple,
Inc.,
June
Strike
Price
$160.00,
Expires
6/21/24
.........
10,000
171,480,000
(2,940,000)
Boeing
Co.
(The),
May
Strike
Price
$160.00,
Expires
5/17/24
.....
10,000
192,990,000
(940,000)
Boeing
Co.
(The),
May
Strike
Price
$165.00,
Expires
5/17/24
.....
10,000
192,990,000
(1,380,000)
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
71
a
a
a
Number
of
Contracts
Notional
Amount
#
a
Value
a
a
a
a
a
a
o
Options
Written
(continued)
Puts
-
Exchange-Traded
(continued)
Equity
Options
(continued)
Broadcom,
Inc.,
March
Strike
Price
$1,250.00,
Expires
3/28/24
...
500
66,270,500
$
(1,500)
Broadcom,
Inc.,
April
Strike
Price
$1,250.00,
Expires
4/19/24
.....
2,000
265,082,000
(2,280,000)
Charles
Schwab
Corp.
(The),
April
Strike
Price
$55.00,
Expires
4/19/24
...........................................
10,000
72,340,000
(40,000)
Chevron
Corp.,
June
Strike
Price
$135.00,
Expires
6/21/24
......
10,000
157,740,000
(530,000)
CVS
Health
Corp.,
May
Strike
Price
$70.00,
Expires
5/17/24
.....
10,000
79,760,000
(350,000)
Exxon
Mobil
Corp.,
April
Strike
Price
$95.00,
Expires
4/19/24
....
10,000
116,240,000
(20,000)
Exxon
Mobil
Corp.,
May
Strike
Price
$100.00,
Expires
5/17/24
....
10,000
116,240,000
(210,000)
Goldman
Sachs
Group,
Inc.
(The),
May
Strike
Price
$350.00,
Expires
5/17/24
...........................................
5,000
208,845,000
(340,000)
Home
Depot,
Inc.
(The),
April
Strike
Price
$330.00,
Expires
4/19/24
5,000
191,800,000
(60,000)
Home
Depot,
Inc.
(The),
April
Strike
Price
$340.00,
Expires
4/19/24
5,000
191,800,000
(125,000)
Honeywell
International,
Inc.,
April
Strike
Price
$180.00,
Expires
4/19/24
...........................................
10,000
205,250,000
(300,000)
Intel
Corp.,
April
Strike
Price
$37.00,
Expires
4/19/24
...........
10,000
44,170,000
(50,000)
Intel
Corp.,
April
Strike
Price
$42.00
,
Expires
4/19/24
...........
10,000
44,170,000
(550,000)
International
Business
Machines
Corp.,
April
Strike
Price
$175.00,
Expires
4/19/24
.....................................
10,000
190,960,000
(210,000)
Johnson
&
Johnson,
April
Strike
Price
$155.00,
Expires
4/19/24
..
10,000
158,190,000
(1,050,000)
JPMorgan
Chase
&
Co.,
April
Strike
Price
$155.00,
Expires
4/19/24
10,000
200,300,000
(70,000)
Medtronic
plc,
April
Strike
Price
$80.00,
Expires
4/19/24
........
5,000
43,575,000
(30,000)
Microchip
Technology,
Inc.,
April
Strike
Price
$75.00,
Expires
4/19/24
10,000
89,710,000
(50,000)
Microsoft
Corp.,
April
Strike
Price
$350.00,
Expires
4/19/24
......
10,000
420,720,000
(160,000)
NVIDIA
Corp.,
May
Strike
Price
$700.00
,
Expires
5/17/24
.......
1,500
135,534,000
(562,500)
PepsiCo,
Inc.,
April
Strike
Price
$160.00,
Expires
4/19/24
.......
10,000
175,010,000
(50,000)
PNC
Financial
Services
Group,
Inc.
(The),
April
Strike
Price
$135.00,
Expires
4/19/24
.....................................
10,000
161,600,000
(160,000)
Starbucks
Corp.,
May
Strike
Price
$90.00,
Expires
5/17/24
......
10,000
91,390,000
(2,570,000)
Texas
Instruments,
Inc.,
April
Strike
Price
$150.00,
Expires
4/19/24
10,000
174,210,000
(60,000)
UnitedHealth
Group,
Inc.,
May
Strike
Price
$470.00,
Expires
5/17/24
2,500
123,675,000
(1,545,000)
(18,284,000)
Total
Options
Written
(Premiums
received
$83,279,635)
..........................
$
(75,211,500)
#
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
period
end.
b
Non-income
producing.
c
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
d
See
Note
1(e)
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
March
31,
2024,
the
aggregate
value
of
these
securities
was
$29,138,540,709,
representing
39.9%
of
net
assets.
f
A
portion
or
all
of
the
security
is
on
loan
at
March
31,
2024.
See
Note
1(f).
g
Perpetual
security
with
no
stated
maturity
date.
h
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
At
March
31,
2024,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
1
(
d
). 
See
Note 8 regarding
other
derivative
information.
i
Income
may
be
received
in
additional
securities
and/or
cash.
j
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
6.
k
See
Note
1(g)
regarding
senior
floating
rate
interests.
l
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
m
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
n
See
Note
1(f)
regarding
securities
on
loan.
o
See
Note
1(d)
regarding
written
options.
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
33,000
$
3,656,296,875
6/18/24
$
16,036,350
U.S.
Treasury
Ultra
Bonds
......................
Long
5,250
677,250,000
6/18/24
13,525,334
Total
Futures
Contracts
......................................................................
$29,561,684
*
As
of
period
end.
See
Abbreviations
on
page
121
.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
73
1
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$4.86
$5.03
$5.89
$6.09
$6.07
$5.86
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.07
0.12
0.08
0.05
0.10
0.14
Net
realized
and
unrealized
gains
(losses)
0.19
(0.14)
(0.81)
(0.12)
0.08
0.25
Total
from
investment
operations
........
0.26
(0.02)
(0.73)
(0.07)
0.18
0.39
Less
distributions
from:
Net
investment
income
..............
(0.08)
(0.15)
(0.13)
(0.13)
(0.16)
(0.18)
Net
asset
value,
end
of
period
..........
$5.04
$4.86
$5.03
$5.89
$6.09
$6.07
Total
return
c
.......................
5.32%
(0.49)%
(12.50)%
(1.15)%
3.01%
6.70%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.87%
0.81%
0.87%
0.87%
0.89%
0.89%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.86%
0.80%
0.86%
e
0.87%
e,f
0.88%
e
0.88%
e
Net
investment
income
...............
2.69%
2.45%
1.44%
0.79%
1.58%
2.36%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$610,389
$607,527
$687,607
$1,020,574
$1,097,545
$336,646
Portfolio
turnover
rate
................
17.23%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$4.86
$5.03
$5.90
$6.09
$6.07
$5.85
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.07
0.13
0.09
0.05
0.10
0.15
Net
realized
and
unrealized
gains
(losses)
0.19
(0.14)
(0.82)
(0.10)
0.09
0.25
Total
from
investment
operations
........
0.26
(0.01)
(0.73)
(0.05)
0.19
0.40
Less
distributions
from:
Net
investment
income
..............
(0.08)
(0.16)
(0.14)
(0.14)
(0.17)
(0.18)
Net
asset
value,
end
of
period
..........
$5.04
$4.86
$5.03
$5.90
$6.09
$6.07
Total
return
c
.......................
5.38%
(0.38)%
(12.55)%
(0.89)%
3.09%
6.94%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.76%
0.70%
0.76%
0.77%
0.78%
0.79%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.75%
0.69%
0.76%
e,f
0.76%
e
0.77%
e
0.78%
e
Net
investment
income
...............
2.80%
2.55%
1.56%
0.90%
1.69%
2.46%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,325,915
$1,362,598
$1,592,268
$2,104,978
$2,661,888
$2,885,194
Portfolio
turnover
rate
................
17.23%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
75
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$4.82
$5.00
$5.85
$6.04
$6.03
$5.81
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.06
0.10
0.06
0.02
0.07
0.12
Net
realized
and
unrealized
gains
(losses)
0.19
(0.15)
(0.80)
(0.10)
0.08
0.25
Total
from
investment
operations
........
0.25
(0.05)
(0.74)
(0.08)
0.15
0.37
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.13)
(0.11)
(0.11)
(0.14)
(0.15)
Net
asset
value,
end
of
period
..........
$5.00
$4.82
$5.00
$5.85
$6.04
$6.03
Total
return
c
.......................
5.15%
(1.12)%
(12.77)%
(1.41)%
2.43%
6.45%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.27%
1.21%
1.27%
1.27%
1.29%
1.29%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.26%
1.20%
1.26%
e
1.27%
e,f
1.28%
e
1.28%
e
Net
investment
income
...............
2.29%
2.04%
1.04%
0.39%
1.18%
1.96%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$51,380
$60,693
$116,145
$196,643
$354,483
$389,021
Portfolio
turnover
rate
................
17.23%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$4.86
$5.03
$5.89
$6.09
$6.07
$5.85
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.06
0.11
0.07
0.03
0.08
0.13
Net
realized
and
unrealized
gains
(losses)
0.19
(0.14)
(0.81)
(0.11)
0.08
0.25
Total
from
investment
operations
........
0.25
(0.03)
(0.74)
(0.08)
0.16
0.38
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.14)
(0.12)
(0.12)
(0.14)
(0.16)
Net
asset
value,
end
of
period
..........
$5.04
$4.86
$5.03
$5.89
$6.09
$6.07
Total
return
c
.......................
5.19%
(0.74)%
(12.72)%
(1.41)%
2.73%
6.58%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.12%
1.05%
1.12%
1.11%
1.13%
1.14%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.11%
1.05%
e
1.11%
f
1.11%
e,f
1.12%
f
1.13%
f
Net
investment
income
...............
2.45%
2.20%
1.20%
0.55%
1.34%
2.11%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$14,072
$14,078
$15,476
$19,513
$27,746
$32,906
Portfolio
turnover
rate
................
17.23%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
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.
Semiannual
Report
77
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$4.88
$5.06
$5.92
$6.12
$6.10
$5.87
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.08
0.14
0.10
0.07
0.12
0.16
Net
realized
and
unrealized
gains
(losses)
0.20
(0.15)
(0.81)
(0.12)
0.08
0.27
Total
from
investment
operations
........
0.28
(0.01)
(0.71)
(0.05)
0.20
0.43
Less
distributions
from:
Net
investment
income
..............
(0.09)
(0.17)
(0.15)
(0.15)
(0.18)
(0.20)
Net
asset
value,
end
of
period
..........
$5.07
$4.88
$5.06
$5.92
$6.12
$6.10
Total
return
c
.......................
5.69%
(0.34)%
(12.11)%
(0.80)%
3.34%
7.39%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.52%
0.46%
0.50%
0.53%
0.54%
0.51%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.51%
0.45%
0.50%
e,f
0.51%
e
0.52%
e
0.50%
e
Net
investment
income
...............
3.04%
2.80%
1.81%
1.15%
1.96%
2.74%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$204,961
$204,317
$202,611
$304,650
$361,791
$573,957
Portfolio
turnover
rate
................
17.23%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$4.88
$5.05
$5.92
$6.11
$6.10
$5.87
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.07
0.14
0.09
0.06
0.11
0.16
Net
realized
and
unrealized
gains
(losses)
0.19
(0.15)
(0.81)
(0.10)
0.07
0.26
Total
from
investment
operations
........
0.26
(0.01)
(0.72)
(0.04)
0.18
0.42
Less
distributions
from:
Net
investment
income
..............
(0.08)
(0.16)
(0.15)
(0.15)
(0.17)
(0.19)
Net
asset
value,
end
of
period
..........
$5.06
$4.88
$5.05
$5.92
$6.11
$6.10
Total
return
c
.......................
5.43%
(0.24)%
(12.39)%
(0.74)%
3.23%
7.08%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.62%
0.55%
0.62%
0.62%
0.64%
0.64%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.61%
0.55%
e
0.61%
f
0.62%
e,f
0.63%
f
0.63%
f
Net
investment
income
...............
2.94%
2.70%
1.67%
1.04%
1.84%
2.61%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$257,215
$262,569
$300,303
$692,010
$743,012
$946,318
Portfolio
turnover
rate
................
17.23%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2024
Franklin
U.S.
Government
Securities
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
79
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
$
15,426,641
Total
U.S.
Government
and
Agency
Securities
(Cost
$18,186,838)
.................
15,426,641
Mortgage-Backed
Securities
98.1%
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
98.1%
GNMA
I,
30
Year,
4.5%,
4/15/40
........................................
3,198,421
3,146,964
GNMA
I,
30
Year,
5%,
9/15/40
..........................................
111,907,032
112,124,002
GNMA
I,
30
Year,
5.5%,
2/15/40
........................................
48,720,108
49,947,513
GNMA
I,
30
Year,
6%,
12/15/39
.........................................
44,797,556
46,227,243
GNMA
I,
30
Year,
6.5%,
8/15/37
........................................
10,423,792
10,614,382
GNMA
I,
30
Year,
7%,
9/15/32
..........................................
6,451,016
6,714,817
GNMA
I,
30
Year,
7.5%,
7/15/26
-
8/15/33
.................................
502,532
518,298
GNMA
I,
30
Year,
8%,
10/15/29
.........................................
901
926
GNMA
I,
30
Year,
8.5%,
11/15/24
........................................
12
12
GNMA
I,
Single-family,
30
Year,
3.5%,
4/15/43
-
5/15/43
......................
10,322,254
9,625,665
GNMA
I,
Single-family,
30
Year,
4%,
10/15/40
-
8/15/46
.......................
30,965,352
29,466,023
GNMA
I,
Single-family,
30
Year,
4.5%,
2/15/39
-
6/15/41
......................
58,727,195
57,719,247
GNMA
I,
Single-family,
30
Year,
5%,
2/15/35
...............................
6,081
6,035
GNMA
I,
Single-family,
30
Year,
5.5%,
10/15/48
.............................
547,625
552,008
GNMA
I,
Single-family,
30
Year,
7.25%,
12/15/25
............................
15,320
15,279
GNMA
I,
Single-family,
30
Year,
7.5%,
4/15/24
-
7/15/31
......................
716,238
720,361
GNMA
I,
Single-family,
30
Year,
8%,
6/15/24
-
9/15/30
........................
238,019
238,619
GNMA
I,
Single-family,
30
Year,
8.5%,
7/15/24
-
11/15/24
......................
815
814
GNMA
I,
Single-family,
30
Year,
10%,
2/15/25
..............................
992
996
GNMA
II,
30
Year,
4.5%,
5/20/34
-
6/20/41
.................................
2,646,733
2,609,657
GNMA
II,
30
Year,
6%,
3/20/34
-
9/20/34
..................................
839,100
834,790
GNMA
II,
30
Year,
6%,
7/20/39
.........................................
20,039,054
20,663,485
GNMA
II,
30
Year,
6.5%,
9/20/31
-
9/20/32
.................................
792,454
806,668
GNMA
II,
30
Year,
7%,
7/20/32
.........................................
227,199
233,473
GNMA
II,
30
Year,
7.5%,
10/20/24
.......................................
136
136
GNMA
II,
30
Year,
8%,
12/20/28
........................................
20,339
20,364
GNMA
II,
Single-family,
30
Year,
2%,
8/20/51
...............................
163,710,217
134,214,370
GNMA
II,
Single-family,
30
Year,
2%,
2/20/51
-
5/20/52
.......................
74,089,991
60,749,332
GNMA
II,
Single-family,
30
Year,
2.5%,
11/20/50
............................
14,350,413
11,871,778
GNMA
II,
Single-family,
30
Year,
2.5%,
7/20/51
.............................
68,102,739
58,082,910
GNMA
II,
Single-family,
30
Year,
2.5%,
8/20/51
.............................
204,954,584
174,788,981
GNMA
II,
Single-family,
30
Year,
2.5%,
9/20/51
.............................
84,326,175
71,905,941
GNMA
II,
Single-family,
30
Year,
2.5%,
10/20/51
............................
87,531,149
74,602,492
GNMA
II,
Single-family,
30
Year,
2.5%,
12/20/51
............................
81,846,031
69,756,763
GNMA
II,
Single-family,
30
Year,
2.5%,
1/20/52
.............................
33,344,302
28,410,198
GNMA
II,
Single-family,
30
Year,
3%,
10/20/44
..............................
17,589,689
15,825,478
GNMA
II,
Single-family,
30
Year,
3%,
5/20/45
...............................
12,775,388
11,443,194
GNMA
II,
Single-family,
30
Year,
3%,
4/20/46
...............................
17,152,266
15,360,038
GNMA
II,
Single-family,
30
Year,
3%,
9/20/47
...............................
13,791,790
12,319,955
GNMA
II,
Single-family,
30
Year,
3%,
10/20/47
..............................
22,115,737
19,752,723
GNMA
II,
Single-family,
30
Year,
3%,
6/20/50
...............................
10,189,264
8,786,324
GNMA
II,
Single-family,
30
Year,
3%,
7/20/51
...............................
84,640,593
74,670,909
GNMA
II,
Single-family,
30
Year,
3%,
8/20/51
...............................
158,796,275
140,091,462
GNMA
II,
Single-family,
30
Year,
3%,
9/20/51
...............................
26,078,680
23,032,503
GNMA
II,
Single-family,
30
Year,
3%,
12/20/44
-
10/20/50
......................
74,660,926
65,300,282
GNMA
II,
Single-family,
30
Year,
3.5%,
7/20/42
.............................
27,438,630
25,498,130
GNMA
II,
Single-family,
30
Year,
3.5%,
9/20/42
.............................
34,464,819
32,032,628
GNMA
II,
Single-family,
30
Year,
3.5%,
5/20/43
.............................
10,308,584
9,584,063
GNMA
II,
Single-family,
30
Year,
3.5%,
6/20/43
.............................
11,897,006
11,061,440
GNMA
II,
Single-family,
30
Year,
3.5%,
9/20/47
.............................
123,060,636
113,376,440
GNMA
II,
Single-family,
30
Year,
3.5%,
11/20/47
............................
117,056,989
107,750,103
GNMA
II,
Single-family,
30
Year,
3.5%,
10/20/40
-
1/20/49
.....................
44,761,696
41,519,400
GNMA
II,
Single-family,
30
Year,
4%,
11/20/40
..............................
9,032,308
8,688,535
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
U.S.
Government
Securities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
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,
4%,
9/20/41
...............................
$
8,991,507
$
8,649,331
GNMA
II,
Single-family,
30
Year,
4%,
10/20/41
..............................
11,071,674
10,650,334
GNMA
II,
Single-family,
30
Year,
4%,
11/20/41
..............................
10,468,661
10,070,265
GNMA
II,
Single-family,
30
Year,
4%,
5/20/47
...............................
29,476,129
27,953,127
GNMA
II,
Single-family,
30
Year,
4%,
6/20/47
...............................
22,614,516
21,492,528
GNMA
II,
Single-family,
30
Year,
4%,
7/20/47
...............................
14,381,044
13,661,614
GNMA
II,
Single-family,
30
Year,
4%,
6/20/52
...............................
35,095,157
32,846,254
GNMA
II,
Single-family,
30
Year,
4%,
5/20/40
-
2/20/54
.......................
45,684,021
43,324,439
GNMA
II,
Single-family,
30
Year,
4.5%,
6/20/41
.............................
10,126,670
9,982,663
GNMA
II,
Single-family,
30
Year,
4.5%,
7/20/41
.............................
11,308,499
11,147,683
GNMA
II,
Single-family,
30
Year,
4.5%,
9/20/41
.............................
16,238,504
16,007,576
GNMA
II,
Single-family,
30
Year,
4.5%,
10/20/41
............................
11,580,092
11,415,407
GNMA
II,
Single-family,
30
Year,
4.5%,
5/20/33
-
2/20/44
......................
33,946,275
33,480,487
GNMA
II,
Single-family,
30
Year,
4.5%,
5/20/52
.............................
36,521,848
35,153,267
GNMA
II,
Single-family,
30
Year,
5%,
7/20/53
...............................
25,833,407
25,390,415
GNMA
II,
Single-family,
30
Year,
5%,
8/20/53
...............................
30,328,124
29,808,055
GNMA
II,
Single-family,
30
Year,
5%,
7/20/33
-
2/20/54
.......................
39,526,965
39,621,363
GNMA
II,
Single-family,
30
Year,
5.5%,
7/20/53
.............................
31,385,246
31,371,960
GNMA
II,
Single-family,
30
Year,
5.5%,
6/20/34
-
9/20/53
......................
44,370,156
45,173,546
GNMA
II,
Single-family,
30
Year,
5.5%,
1/20/54
.............................
49,656,955
49,635,935
GNMA
II,
Single-family,
30
Year,
6%,
6/20/34
...............................
451,823
463,132
GNMA
II,
Single-family,
30
Year,
6%,
2/20/54
...............................
40,379,002
40,765,214
GNMA
II,
Single-family,
30
Year,
6.5%,
8/20/25
-
12/20/53
.....................
12,398,036
12,784,388
GNMA
II,
Single-family,
30
Year,
6.5%,
2/20/54
.............................
43,071,146
43,833,788
GNMA
II,
Single-family,
30
Year,
7%,
2/20/28
-
7/20/33
.......................
1,588,361
1,630,460
GNMA
II,
Single-family,
30
Year,
7%,
2/20/54
...............................
36,674,035
37,525,911
GNMA
II,
Single-family,
30
Year,
7.5%,
10/20/25
-
4/20/32
.....................
171,447
174,852
GNMA
II,
Single-family,
30
Year,
8%,
12/20/24
-
6/20/30
......................
82,199
83,974
GNMA
II,
Single-family,
30
Year,
8.5%,
1/20/25
-
6/20/25
......................
30
30
GNMA
II,
Single-family,
30
Year,
9.5%,
1/20/25
.............................
134
134
2,417,382,281
Total
Mortgage-Backed
Securities
(Cost
$2,709,664,622)
.........................
2,417,382,281
Total
Long
Term
Investments
(Cost
$2,727,851,460)
.............................
2,432,808,922
a
a
a
a
a
Short
Term
Investments
1.1%
Shares
a
Money
Market
Funds
1.1%
a,b
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
..................
27,945,392
27,945,392
Total
Money
Market
Funds
(Cost
$27,945,392)
..................................
27,945,392
Total
Short
Term
Investments
(Cost
$27,945,392
)
................................
27,945,392
a
Total
Investments
(Cost
$2,755,796,852)
99.8%
..................................
$2,460,754,314
Other
Assets,
less
Liabilities
0.2%
.............................................
3,178,046
Net
Assets
100.0%
...........................................................
$2,463,932,360
See
Abbreviations
on
page
121
.
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.
Semiannual
Report
81
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.64
$20.26
$20.20
$19.76
$22.53
$18.66
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.27
0.49
0.46
0.43
0.51
0.53
Net
realized
and
unrealized
gains
(losses)
2.22
(1.33)
0.67
1.94
(2.43)
4.41
Total
from
investment
operations
........
2.49
(0.84)
1.13
2.37
(1.92)
4.94
Less
distributions
from:
Net
investment
income
..............
(0.26)
(0.47)
(0.47)
(0.52)
(0.50)
(0.49)
Net
realized
gains
.................
(0.74)
(0.31)
(0.60)
(1.41)
(0.35)
(0.58)
Total
distributions
...................
(1.00)
(0.78)
(1.07)
(1.93)
(0.85)
(1.07)
Net
asset
value,
end
of
period
..........
$20.13
$18.64
$20.26
$20.20
$19.76
$22.53
Total
return
c
.......................
13.68%
(4.55)%
5.56%
12.29%
(8.68)%
27.43%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.82%
0.81%
f
0.82%
f
0.82%
f
0.83%
f
0.83%
f
Net
investment
income
...............
2.82%
2.34%
2.08%
2.10%
2.46%
2.51%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,157,585
$1,116,740
$1,200,671
$982,201
$742,188
$521,782
Portfolio
turnover
rate
................
3.41%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Utilities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.65
$20.27
$20.21
$19.77
$22.54
$18.66
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.28
0.50
0.47
0.45
0.52
0.53
Net
realized
and
unrealized
gains
(losses)
2.22
(1.31)
0.68
1.94
(2.41)
4.44
Total
from
investment
operations
........
2.50
(0.81)
1.15
2.39
(1.89)
4.97
Less
distributions
from:
Net
investment
income
..............
(0.27)
(0.50)
(0.49)
(0.54)
(0.53)
(0.51)
Net
realized
gains
.................
(0.74)
(0.31)
(0.60)
(1.41)
(0.35)
(0.58)
Total
distributions
...................
(1.01)
(0.81)
(1.09)
(1.95)
(0.88)
(1.09)
Net
asset
value,
end
of
period
..........
$20.14
$18.65
$20.27
$20.21
$19.77
$22.54
Total
return
c
.......................
13.73%
(4.45)%
5.67%
12.40%
(8.59)%
27.61%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.72%
0.71%
f
0.72%
f
0.72%
f
0.73%
f
0.73%
f
Net
investment
income
...............
2.92%
2.42%
2.16%
2.20%
2.50%
2.61%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,880,870
$2,752,653
$3,230,150
$3,321,370
$3,388,126
$4,176,487
Portfolio
turnover
rate
................
3.41%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
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.
Semiannual
Report
83
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.53
$20.14
$20.09
$19.65
$22.42
$18.57
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.23
0.39
0.36
0.34
0.41
0.42
Net
realized
and
unrealized
gains
(losses)
2.20
(1.30)
0.67
1.95
(2.41)
4.43
Total
from
investment
operations
........
2.43
(0.91)
1.03
2.29
(2.00)
4.85
Less
distributions
from:
Net
investment
income
..............
(0.22)
(0.39)
(0.38)
(0.44)
(0.42)
(0.42)
Net
realized
gains
.................
(0.74)
(0.31)
(0.60)
(1.41)
(0.35)
(0.58)
Total
distributions
...................
(0.96)
(0.70)
(0.98)
(1.85)
(0.77)
(1.00)
Net
asset
value,
end
of
period
..........
$20.00
$18.53
$20.14
$20.09
$19.65
$22.42
Total
return
c
.......................
13.44%
(4.91)%
5.11%
11.91%
(9.10)%
26.96%
Ratios
to
average
net
assets
d
Expenses
e
........................
1.22%
1.21%
f
1.22%
f
1.22%
f
1.23%
f
1.23%
f
Net
investment
income
...............
2.39%
1.90%
1.66%
1.69%
1.98%
2.11%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$206,488
$218,134
$302,959
$350,553
$537,808
$767,363
Portfolio
turnover
rate
................
3.41%
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,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Utilities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
84
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.56
$20.17
$20.12
$19.68
$22.45
$18.59
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.24
0.43
0.40
0.38
0.44
0.45
Net
realized
and
unrealized
gains
(losses)
2.20
(1.31)
0.67
1.94
(2.41)
4.44
Total
from
investment
operations
........
2.44
(0.88)
1.07
2.32
(1.97)
4.89
Less
distributions
from:
Net
investment
income
..............
(0.23)
(0.42)
(0.42)
(0.47)
(0.45)
(0.45)
Net
realized
gains
.................
(0.74)
(0.31)
(0.60)
(1.41)
(0.35)
(0.58)
Total
distributions
...................
(0.97)
(0.73)
(1.02)
(1.88)
(0.80)
(1.03)
Net
asset
value,
end
of
period
..........
$20.03
$18.56
$20.17
$20.12
$19.68
$22.45
Total
return
c
.......................
13.55%
(4.76)%
5.26%
12.06%
(8.95)%
27.17%
Ratios
to
average
net
assets
d
Expenses
e
........................
1.07%
1.06%
f
1.07%
f
1.07%
f
1.08%
f
1.08%
f
Net
investment
income
...............
2.56%
2.08%
1.83%
1.85%
2.15%
2.26%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$90,947
$89,085
$103,579
$83,441
$84,488
$103,376
Portfolio
turnover
rate
................
3.41%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
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.
Semiannual
Report
85
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.84
$20.47
$20.40
$19.93
$22.73
$18.81
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.30
0.56
0.54
0.50
0.58
0.56
Net
realized
and
unrealized
gains
(losses)
2.25
(1.34)
0.67
1.96
(2.46)
4.50
Total
from
investment
operations
........
2.55
(0.78)
1.21
2.46
(1.88)
5.06
Less
distributions
from:
Net
investment
income
..............
(0.29)
(0.54)
(0.54)
(0.58)
(0.57)
(0.56)
Net
realized
gains
.................
(0.74)
(0.31)
(0.60)
(1.41)
(0.35)
(0.58)
Total
distributions
...................
(1.03)
(0.85)
(1.14)
(1.99)
(0.92)
(1.14)
Net
asset
value,
end
of
period
..........
$20.36
$18.84
$20.47
$20.40
$19.93
$22.73
Total
return
c
.......................
13.87%
(4.24)%
5.90%
12.71%
(8.44)%
27.89%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.52%
0.52%
0.54%
0.58%
0.56%
0.53%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.49%
0.49%
e
0.50%
e
0.50%
e
0.50%
e
0.50%
e
Net
investment
income
...............
3.14%
2.64%
2.41%
2.42%
2.75%
2.84%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$206,665
$187,585
$223,710
$153,969
$144,079
$150,244
Portfolio
turnover
rate
................
3.41%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Financial
Highlights
Franklin
Utilities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
86
a
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.84
$20.47
$20.40
$19.93
$22.73
$18.81
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.30
0.54
0.52
0.48
0.56
0.56
Net
realized
and
unrealized
gains
(losses)
2.24
(1.33)
0.68
1.97
(2.46)
4.48
Total
from
investment
operations
........
2.54
(0.79)
1.20
2.45
(1.90)
5.04
Less
distributions
from:
Net
investment
income
..............
(0.28)
(0.53)
(0.53)
(0.57)
(0.55)
(0.54)
Net
realized
gains
.................
(0.74)
(0.31)
(0.60)
(1.41)
(0.35)
(0.58)
Total
distributions
...................
(1.02)
(0.84)
(1.13)
(1.98)
(0.90)
(1.12)
Net
asset
value,
end
of
period
..........
$20.36
$18.84
$20.47
$20.40
$19.93
$22.73
Total
return
c
.......................
13.83%
(4.31)%
5.82%
12.62%
(8.51)%
27.78%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.57%
0.56%
f
0.57%
f
0.57%
f
0.58%
f
0.58%
f
Net
investment
income
...............
3.05%
2.57%
2.32%
2.35%
2.66%
2.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,119,177
$1,134,602
$1,383,667
$1,200,859
$1,179,002
$1,262,883
Portfolio
turnover
rate
................
3.41%
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
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited),
March
31,
2024
Franklin
Utilities
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
87
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
99.4%
Construction
&
Engineering
1.2%
MDU
Resources
Group,
Inc.
.............................
United
States
2,600,000
$
65,520,000
Electric
Utilities
57.9%
Alliant
Energy
Corp.
...................................
United
States
3,500,000
176,400,000
American
Electric
Power
Co.,
Inc.
.........................
United
States
1,000,000
86,100,000
Constellation
Energy
Corp.
..............................
United
States
300,000
55,455,000
Duke
Energy
Corp.
....................................
United
States
2,400,000
232,104,000
Edison
International
...................................
United
States
4,000,000
282,920,000
Entergy
Corp.
........................................
United
States
2,400,000
253,632,000
Evergy,
Inc.
..........................................
United
States
4,150,000
221,527,000
Eversource
Energy
....................................
United
States
1,600,000
95,632,000
Exelon
Corp.
.........................................
United
States
5,800,000
217,906,000
FirstEnergy
Corp.
.....................................
United
States
3,200,000
123,584,000
NextEra
Energy,
Inc.
...................................
United
States
9,000,000
575,190,000
NRG
Energy,
Inc.
.....................................
United
States
800,000
54,152,000
OGE
Energy
Corp.
....................................
United
States
1,600,000
54,880,000
PG&E
Corp.
.........................................
United
States
11,700,000
196,092,000
Pinnacle
West
Capital
Corp.
.............................
United
States
775,000
57,915,750
PNM
Resources,
Inc.
..................................
United
States
1,200,000
45,168,000
PPL
Corp.
...........................................
United
States
7,000,000
192,710,000
Southern
Co.
(The)
....................................
United
States
4,400,000
315,656,000
Xcel
Energy,
Inc.
......................................
United
States
800,000
43,000,000
3,280,023,750
Gas
Utilities
0.8%
Spire,
Inc.
...........................................
United
States
700,000
42,959,000
Independent
Power
and
Renewable
Electricity
Producers
6.3%
Clearway
Energy,
Inc.
,
C
................................
United
States
900,000
20,745,000
a
Drax
Group
plc
.......................................
United
Kingdom
9,816,308
62,116,799
Vistra
Corp.
..........................................
United
States
3,900,000
271,635,000
354,496,799
Multi-Utilities
28.2%
Ameren
Corp.
........................................
United
States
1,900,000
140,524,000
CenterPoint
Energy,
Inc.
................................
United
States
5,600,000
159,544,000
CMS
Energy
Corp.
....................................
United
States
2,800,000
168,952,000
Dominion
Energy,
Inc.
..................................
United
States
2,000,000
98,380,000
DTE
Energy
Co.
......................................
United
States
1,500,000
168,210,000
E.ON
SE
............................................
Germany
9,000,000
125,291,518
National
Grid
plc
......................................
United
Kingdom
5,000,000
67,364,715
NiSource,
Inc.
........................................
United
States
6,300,000
174,258,000
Northwestern
Energy
Group,
Inc.
.........................
United
States
1,300,000
66,209,000
Public
Service
Enterprise
Group,
Inc.
......................
United
States
1,900,000
126,882,000
Sempra
.............................................
United
States
3,600,000
258,588,000
WEC
Energy
Group,
Inc.
................................
United
States
500,000
41,060,000
1,595,263,233
Oil,
Gas
&
Consumable
Fuels
4.0%
Cheniere
Energy,
Inc.
..................................
United
States
650,000
104,832,000
DT
Midstream,
Inc.
....................................
United
States
1,200,000
73,320,000
Williams
Cos.,
Inc.
(The)
................................
United
States
1,300,000
50,661,000
228,813,000
Water
Utilities
1.0%
Essential
Utilities,
Inc.
..................................
United
States
900,000
33,345,000
Franklin
Custodian
Funds
Schedule
of
Investments
(unaudited)
Franklin
Utilities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
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
$
25,985,222
59,330,222
Total
Common
Stocks
(Cost
$
2,775,403,250
)
....................................
5,626,406,004
Short
Term
Investments
0.5%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
0.5%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.997
%
....
United
States
30,064,728
30,064,728
Total
Money
Market
Funds
(Cost
$
30,064,728
)
..................................
30,064,728
Total
Short
Term
Investments
(Cost
$
30,064,728
)
................................
30,064,728
a
Total
Investments
(Cost
$
2,805,467,978
)
99.9
%
..................................
$5,656,470,732
Other
Assets,
less
Liabilities
0.1
%
.............................................
5,260,023
Net
Assets
100.0%
...........................................................
$5,661,730,755
a
a
a
a
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
b
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
March
31,
2024
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
89
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$10,202,487,736
$4,849,315,234
$70,100,204,071
Cost
-
Non-controlled
affiliates
(Note
3f)
......................
36,342,803
132,749,137
858,156,687
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$—,
$12,499,000
and
$95,923,632,
respectively)
...................
$24,503,255,307
$18,744,393,931
$71,646,455,840
Value
-
Non-controlled
affiliates
(Note
3f)
......................
36,342,803
132,749,137
851,233,149
Cash
..................................................
367,815
5,740,612
20,255,777
Receivables:
Investment
securities
sold
.................................
18,970,815
49,843,200
9,149,400
Capital
shares
sold
......................................
16,654,178
9,645,179
41,162,924
Dividends
and
interest
...................................
4,750,714
8,335,601
755,891,571
European
Union
tax
reclaims
(Note
1
h
)
.......................
28,634,999
Deposits
with
brokers
for:
Futures
contracts
......................................
101,362,500
Total
assets
........................................
24,580,341,632
18,950,707,660
73,454,146,160
Liabilities:
Payables:
Investment
securities
purchased
............................
19,156,334
99,310,750
Capital
shares
redeemed
.................................
34,653,634
17,271,238
58,552,181
Management
fees
.......................................
8,487,208
6,709,178
22,284,239
Distribution
fees
........................................
3,274,221
3,000,419
11,117,427
Transfer
agent
fees
......................................
4,098,466
3,744,142
12,970,243
Trustees'
fees
and
expenses
...............................
393
6
247
Distributions
to
shareholders
...............................
526
Variation
margin
on
futures
contracts
.........................
117,023
Options
written,
at
value
(premiums
received
$–,
$–
and
$83,279,635,
respectively)
............................................
75,211,500
Payable
upon
return
of
securities
loaned
(Note
1
f
)
................
91,213,000
Accrued
expenses
and
other
liabilities
.........................
1,967,745
1,019,996
3,074,454
Total
liabilities
.......................................
52,481,667
50,901,313
373,851,590
Net
assets,
at
value
...............................
$24,527,859,965
$18,899,806,347
$73,080,294,570
Net
assets
consist
of:
Paid-in
capital
...........................................
$11,336,738,992
$4,392,136,663
$72,888,406,478
Total
distributable
earnings
(losses)
...........................
13,191,120,973
14,507,669,684
191,888,092
Net
assets,
at
value
...............................
$24,527,859,965
$18,899,806,347
$73,080,294,570
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
March
31,
2024
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$11,180,876,866
$12,172,219,491
$21,765,949,774
Shares
outstanding
......................................
72,933,145
89,566,689
9,291,018,033
Net
asset
value
per
share
a,b
................................
$153.30
$135.90
$2.34
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50
%,
94.50
%
and
96.25
%,
respectively)
b
..........................
$162.22
$143.81
$2.43
Class
A1:
Net
assets,
at
value
.....................................
$—
$—
$30,587,109,354
Shares
outstanding
......................................
13,028,399,841
Net
asset
value
per
share
a,b
................................
$—
$—
$2.35
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
—%,
—%
and
96.25%)
b
......................................
$—
$—
$2.44
Class
C:
Net
assets,
at
value
.....................................
$941,939,616
$370,469,300
$4,725,986,017
Shares
outstanding
......................................
7,712,359
3,239,790
1,974,053,624
Net
asset
value
and
maximum
offering
price
per
share
a,b
..........
$122.13
$114.35
$2.39
Class
R:
Net
assets,
at
value
.....................................
$262,656,818
$308,607,763
$323,019,874
Shares
outstanding
......................................
1,789,993
2,300,906
140,945,291
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$146.74
$134.12
$2.29
Class
R6:
Net
assets,
at
value
.....................................
$9,019,657,887
$2,717,907,975
$1,800,962,870
Shares
outstanding
......................................
55,433,281
19,831,010
770,634,726
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$162.71
$137.05
$2.34
Advisor
Class:
Net
assets,
at
value
.....................................
$3,122,728,778
$3,330,601,818
$13,877,266,681
Shares
outstanding
......................................
19,482,897
24,281,411
5,969,375,720
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$160.28
$137.17
$2.32
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
March
31,
2024
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
91
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
..................................................
$2,727,851,460
$2,775,403,250
Cost
-
Non-controlled
affiliates
(Note
3f)
.......................................
27,945,392
30,064,728
Value
-
Unaffiliated
issuers
.................................................
$2,432,808,922
$5,626,406,004
Value
-
Non-controlled
affiliates
(Note
3f)
.......................................
27,945,392
30,064,728
Cash
...................................................................
5,024,312
Receivables:
Capital
shares
sold
.......................................................
832,536
1,516,541
Dividends
and
interest
....................................................
8,130,590
11,783,702
Total
assets
.........................................................
2,469,717,440
5,674,795,287
Liabilities:
Payables:
Investment
securities
purchased
.............................................
1,544,403
Capital
shares
redeemed
..................................................
3,282,086
6,672,536
Management
fees
........................................................
940,348
2,232,966
Distribution
fees
.........................................................
327,182
741,152
Transfer
agent
fees
.......................................................
829,782
1,464,792
Trustees'
fees
and
expenses
................................................
1,860
1,972
Accrued
expenses
and
other
liabilities
..........................................
403,822
406,711
Total
liabilities
........................................................
5,785,080
13,064,532
Net
assets,
at
value
................................................
$2,463,932,360
$5,661,730,755
Net
assets
consist
of:
Paid-in
capital
............................................................
$3,612,707,227
$2,608,595,221
Total
distributable
earnings
(losses)
............................................
(1,148,774,867)
3,053,135,534
Net
assets,
at
value
................................................
$2,463,932,360
$5,661,730,755
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
March
31,
2024
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Class
A:
Net
assets,
at
value
......................................................
$610,388,943
$1,157,584,891
Shares
outstanding
.......................................................
121,059,217
57,500,894
Net
asset
value
per
share
a,b
.................................................
$5.04
$20.13
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
b
...............
$5.24
$20.91
Class
A1:
Net
assets,
at
value
......................................................
$1,325,915,074
$2,880,870,309
Shares
outstanding
.......................................................
262,843,155
143,045,615
Net
asset
value
per
share
a,b
.................................................
$5.04
$20.14
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
b
...............
$5.24
$20.92
Class
C:
Net
assets,
at
value
......................................................
$51,380,496
$206,487,576
Shares
outstanding
.......................................................
10,267,300
10,325,049
Net
asset
value
and
maximum
offering
price
per
share
a,b
...........................
$5.00
$20.00
Class
R:
Net
assets,
at
value
......................................................
$14,071,665
$90,946,661
Shares
outstanding
.......................................................
2,790,148
4,539,395
Net
asset
value
and
maximum
offering
price
per
share
b
............................
$5.04
$20.03
Class
R6:
Net
assets,
at
value
......................................................
$204,961,243
$206,664,791
Shares
outstanding
.......................................................
40,440,186
10,152,408
Net
asset
value
and
maximum
offering
price
per
share
b
............................
$5.07
$20.36
Advisor
Class:
Net
assets,
at
value
......................................................
$257,214,939
$1,119,176,527
Shares
outstanding
.......................................................
50,803,262
54,975,835
Net
asset
value
and
maximum
offering
price
per
share
b
............................
$5.06
$20.36
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
March
31,
2024
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
93
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$449,207,
$439,674
and
$438,498,
respectively)
Unaffiliated
issuers
......................................
$38,629,891
$78,787,675
$253,920,105
Non-controlled
affiliates
(Note
3f)
...........................
2,590,296
3,301,835
34,304,168
Interest:
Unaffiliated
issuers
......................................
1,438,510,798
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
(15,828)
(11,944)
608,377
Non-controlled
affiliates
(Note
3
f
)
...........................
55,388
125,003
477,809
Other
income
(Note
1
h
)
....................................
700,273
Total
investment
income
.................................
41,259,747
82,202,569
1,728,521,530
Expenses:
Management
fees
(Note
3
a
)
.................................
46,696,783
37,698,778
132,451,065
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
12,335,571
13,825,190
25,751,458
    Class
A1
.............................................
22,452,703
    Class
C
..............................................
4,272,566
1,745,650
15,443,557
    Class
R
..............................................
589,317
699,387
773,888
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
5,515,965
4,989,582
7,873,980
    Class
A1
.............................................
11,447,310
    Class
C
..............................................
477,925
157,637
1,817,696
    Class
R
..............................................
131,804
126,199
118,334
    Class
R6
.............................................
676,199
231,537
197,252
    Advisor
Class
..........................................
1,576,907
1,390,680
5,070,128
Custodian
fees
...........................................
99,168
29,101
265,026
Reports
to
shareholders
fees
................................
1,060,979
382,164
1,349,876
Registration
and
filing
fees
..................................
279,821
199,354
588,218
Professional
fees
.........................................
46,126
53,234
97,688
Trustees'
fees
and
expenses
................................
130,643
101,417
440,670
Other
..................................................
264,904
229,955
1,277,945
Total
expenses
.......................................
74,154,678
61,859,865
227,416,794
Expenses
waived/paid
by
affiliates
(Note
3f
and
3g)
............
(202,888)
(232,598)
(2,439,335)
Net
expenses
.......................................
73,951,790
61,627,267
224,977,459
Net
investment
income
(loss)
..........................
(32,692,043)
20,575,302
1,503,544,071
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
463,847,721
656,099,541
(221,622,198)
Written
options
.........................................
167,558,559
Foreign
currency
transactions
..............................
(286,383)
5,347
140,666
Futures
contracts
.......................................
(41,979,301)
Net
realized
gain
(loss)
................................
463,561,338
656,104,888
(95,902,274)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
5,642,859,385
3,269,703,655
5,091,695,753
Non-controlled
affiliates
(Note
3f)
..........................
(944,140)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
29,265
1,387
1,097,747
Written
options
.........................................
(3,221,508)
Futures
contracts
.......................................
194,979,258
Net
change
in
unrealized
appreciation
(depreciation)
..........
5,642,888,650
3,269,705,042
5,283,607,110
Net
realized
and
unrealized
gain
(loss)
..........................
6,106,449,988
3,925,809,930
5,187,704,836
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$6,073,757,945
$3,946,385,232
$6,691,248,907
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
March
31,
2024
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
.......................................................
$—
$99,634,666
Non-controlled
affiliates
(Note
3f)
............................................
1,120,096
309,430
Interest:
Unaffiliated
issuers:
Paydown
gain
(loss)
....................................................
(4,340,736)
Paid
in
cash
a
..........................................................
47,687,112
Total
investment
income
..................................................
44,466,472
99,944,096
Expenses:
Management
fees
(Note
3
a
)
..................................................
5,731,447
12,366,722
Distribution
fees:
(Note
3c
)
    Class
A
...............................................................
771,278
1,404,834
    Class
A1
..............................................................
975,382
2,085,741
    Class
C
...............................................................
180,306
679,580
    Class
R
...............................................................
34,906
217,692
Transfer
agent
fees:
(Note
3e
)
    Class
A
...............................................................
401,681
575,488
    Class
A1
..............................................................
882,485
1,423,913
    Class
C
...............................................................
36,202
107,152
    Class
R
...............................................................
9,084
44,580
    Class
R6
..............................................................
31,282
55,794
    Advisor
Class
...........................................................
169,983
572,477
Custodian
fees
............................................................
9,801
22,926
Reports
to
shareholders
fees
.................................................
114,463
147,493
Registration
and
filing
fees
...................................................
69,935
97,454
Professional
fees
..........................................................
39,810
36,870
Trustees'
fees
and
expenses
.................................................
16,485
37,338
Other
...................................................................
92,847
89,722
Total
expenses
........................................................
9,567,377
19,965,776
Expenses
waived/paid
by
affiliates
(Note
3f
and
3g)
.............................
(78,771)
(47,015)
Net
expenses
........................................................
9,488,606
19,918,761
Net
investment
income
...............................................
34,977,866
80,025,335
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
.....................................................
(39,797,869)
223,966,397
Foreign
currency
transactions
...............................................
(25,360)
Net
realized
gain
(loss)
.................................................
(39,797,869)
223,941,037
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
.....................................................
139,552,679
406,805,373
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
.............
39,659
Net
change
in
unrealized
appreciation
(depreciation)
...........................
139,552,679
406,845,032
Net
realized
and
unrealized
gain
(loss)
...........................................
99,754,810
630,786,069
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................
$134,732,676
$710,811,404
a
Includes
amortization
of
premium
and
accretion
of
discount.
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
95
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$(32,692,043)
$(40,586,737)
$20,575,302
$36,504,303
Net
realized
gain
(loss)
............
463,561,338
(625,701,869)
656,104,888
1,015,622,488
Net
change
in
unrealized
appreciation
(depreciation)
.................
5,642,888,650
4,822,674,776
3,269,705,042
1,828,972,646
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
6,073,757,945
4,156,386,170
3,946,385,232
2,881,099,437
Distributions
to
shareholders:
Class
A
........................
(661,586,795)
(909,635,091)
Class
C
........................
(23,849,244)
(44,719,554)
Class
R
........................
(16,322,231)
(24,964,554)
Class
R6
.......................
(154,945,909)
(198,355,706)
Advisor
Class
...................
(189,159,041)
(266,375,785)
Total
distributions
to
shareholders
.....
(1,045,863,220)
(1,444,050,690)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(204,688,416)
(337,773,209)
234,671,257
43,938,573
Class
C
........................
(64,269,609)
(106,526,277)
(18,044,311)
(105,822,260)
Class
R
........................
(13,902,141)
(23,054,438)
4,772,032
(16,786,530)
Class
R6
.......................
(776,872,078)
(428,242,325)
187,735,396
(87,230,658)
Advisor
Class
...................
(156,710,498)
(311,526,640)
(48,329,967)
(62,355,424)
Total
capital
share
transactions
.......
(1,216,442,742)
(1,207,122,889)
360,804,407
(228,256,299)
Net
increase
(decrease)
in
net
assets
.....................
4,857,315,203
2,949,263,281
3,261,326,419
1,208,792,448
Net
assets:
Beginning
of
period
................
19,670,544,762
16,721,281,481
15,638,479,928
14,429,687,480
End
of
period
.....................
$24,527,859,965
$19,670,544,762
$18,899,806,347
$15,638,479,928
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$1,503,544,071
$2,897,504,972
$34,977,866
$70,388,010
Net
realized
gain
(loss)
............
(95,902,274)
1,275,064,110
(39,797,869)
(11,489,373)
Net
change
in
unrealized
appreciation
(depreciation)
.................
5,283,607,110
1,374,899,174
139,552,679
(63,522,640)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
6,691,248,907
5,547,468,256
134,732,676
(4,624,003)
Distributions
to
shareholders:
Class
A
........................
(582,213,608)
(1,088,887,170)
(9,526,617)
(18,992,408)
Class
A1
.......................
(864,429,725)
(1,829,113,474)
(21,555,240)
(45,747,379)
Class
C
........................
(122,903,821)
(288,652,148)
(739,544)
(2,788,226)
Class
R
........................
(8,535,096)
(16,524,734)
(197,287)
(418,094)
Class
R6
.......................
(51,230,359)
(89,382,048)
(3,453,198)
(6,525,019)
Advisor
Class
...................
(392,792,738)
(775,029,689)
(4,304,977)
(9,122,636)
Total
distributions
to
shareholders
.....
(2,022,105,347)
(4,087,589,263)
(39,776,863)
(83,593,762)
Capital
share
transactions:
(Note
2
)
Class
A
........................
691,969,739
2,570,603,933
(19,995,947)
(58,993,421)
Class
A1
.......................
(1,022,679,979)
(1,352,914,020)
(88,470,670)
(182,231,037)
Class
C
........................
(493,139,217)
(915,970,034)
(11,389,933)
(53,026,368)
Class
R
........................
2,418,007
25,115,227
(506,493)
(850,366)
Class
R6
.......................
23,344,026
491,347,753
(6,979,062)
8,774,608
Advisor
Class
...................
60,439,856
1,081,950,846
(15,462,914)
(28,084,539)
Total
capital
share
transactions
.......
(737,647,568)
1,900,133,705
(142,805,019)
(314,411,123)
Net
increase
(decrease)
in
net
assets
.....................
3,931,495,992
3,360,012,698
(47,849,206)
(402,628,888)
Net
assets:
Beginning
of
period
................
69,148,798,578
65,788,785,880
2,511,781,566
2,914,410,454
End
of
period
.....................
$73,080,294,570
$69,148,798,578
$2,463,932,360
$2,511,781,566
Franklin
Custodian
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
97
Franklin
Utilities
Fund
Six
Months
Ended
March
31,
2024
(unaudited)
Year
Ended
September
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$80,025,335
$155,707,445
Net
realized
gain
(loss)
.................................................
223,941,037
196,124,486
Net
change
in
unrealized
appreciation
(depreciation)
...........................
406,845,032
(574,064,096)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
710,811,404
(222,232,165)
Distributions
to
shareholders:
Class
A
.............................................................
(57,304,592)
(47,301,433)
Class
A1
............................................................
(143,605,519)
(123,955,611)
Class
C
.............................................................
(10,308,765)
(9,576,816)
Class
R
.............................................................
(4,341,612)
(3,775,562)
Class
R6
............................................................
(9,743,482)
(9,040,783)
Advisor
Class
........................................................
(58,343,690)
(54,549,649)
Total
distributions
to
shareholders
..........................................
(283,647,660)
(248,199,854)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(47,123,074)
14,298,922
Class
A1
............................................................
(88,044,904)
(241,581,831)
Class
C
.............................................................
(27,621,204)
(67,137,551)
Class
R
.............................................................
(4,839,612)
(6,763,361)
Class
R6
............................................................
3,888,112
(20,302,748)
Advisor
Class
........................................................
(100,490,705)
(154,018,141)
Total
capital
share
transactions
............................................
(264,231,387)
(475,504,710)
Net
increase
(decrease)
in
net
assets
...................................
162,932,357
(945,936,729)
Net
assets:
Beginning
of
period
.....................................................
5,498,798,398
6,444,735,127
End
of
period
..........................................................
$5,661,730,755
$5,498,798,398
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
98
franklintempleton.com
Semiannual
Report
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 five
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
Growth
Fund
Class
A,
Class
A1,
Class
C,
Class
R,
Class
R6,
&
Advisor
Class
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
The
following
summarizes
the Funds'
significant
accounting
policies. 
a.
Financial
Instrument
Valuation
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier. Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
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
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
99
franklintempleton.com
Semiannual
Report
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
Funds.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
March
31,
2024,
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
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
100
franklintempleton.com
Semiannual
Report
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
March
31,
2024,
Franklin
DynaTech
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 March
31,
2024,
Franklin
DynaTech
Fund,
Franklin
Growth
Fund,
Franklin
U.S.
Government
Securities
Fund
and
Franklin
Utilities
Fund
had
no
option
contracts.
See
Note
8 regarding
other
derivative
information.
e.
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.
f.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds.
Additionally,
at
March
31,
2024,
Franklin
Growth
Fund
and
Franklin
Income
Fund
held
$12,745,542
and
$9,074,582,
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-
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Derivative
Financial
Instruments
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
101
franklintempleton.com
Semiannual
Report
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
March
31,
2024,
Franklin
Dynatech
Fund,
Franklin
U.S.
Government
Securities
Fund
and
Franklin
Utilities
Fund
had
no
securities
on
loan.
g.
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
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.
h.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their income
tax
returns.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
March
31,
2024, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
i.
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
(including
interest
income
from
payment-in-kind
securities,
if
any)
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
1.
Organization
and
Significant
Accounting
Policies
(continued)
f.
Securities
Lending
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
102
franklintempleton.com
Semiannual
Report
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.
j.
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.
k.
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.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
103
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
March
31,
2024,
there
were
an
unlimited
number
of
shares
authorized
(without
par value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
a
...................................
5,005,098
$677,449,732
3,609,731
$450,293,253
Shares
issued
in
reinvestment
of
distributions
..........
5,277,018
636,408,371
Shares
redeemed
...............................
(6,539,488)
(882,138,148)
(6,845,485)
(852,030,367)
Net
increase
(decrease)
..........................
(1,534,390)
$(204,688,416)
2,041,264
$234,671,257
Year
ended
September
30,
2023
Shares
sold
a
...................................
10,835,412
$1,175,640,499
8,919,861
$1,004,330,038
Shares
issued
in
reinvestment
of
distributions
..........
8,412,633
874,241,477
Shares
redeemed
...............................
(14,127,682)
(1,513,413,708)
(16,309,554)
(1,834,632,942)
Net
increase
(decrease)
..........................
(3,292,270)
$(337,773,209)
1,022,940
$43,938,573
Class
C
Class
C
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
470,692
$50,854,106
211,374
$22,317,999
Shares
issued
in
reinvestment
of
distributions
..........
231,562
23,547,385
Shares
redeemed
a
..............................
(1,074,193)
(115,123,715)
(608,180)
(63,909,695)
Net
increase
(decrease)
..........................
(603,501)
$(64,269,609)
(165,244)
$(18,044,311)
Year
ended
September
30,
2023
Shares
sold
...................................
1,092,810
$94,835,391
668,819
$64,223,834
Shares
issued
in
reinvestment
of
distributions
..........
495,681
44,160,212
Shares
redeemed
a
..............................
(2,355,286)
(201,361,668)
(2,195,278)
(214,206,306)
Net
increase
(decrease)
..........................
(1,262,476)
$(106,526,277)
(1,030,778)
$(105,822,260)
Class
R
Class
R
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
78,366
$10,142,876
197,990
$24,776,148
Shares
issued
in
reinvestment
of
distributions
..........
136,869
16,301,130
Shares
redeemed
...............................
(189,178)
(24,045,017)
(295,207)
(36,305,246)
Net
increase
(decrease)
..........................
(110,812)
$(13,902,141)
39,652
$4,772,032
Year
ended
September
30,
2023
Shares
sold
...................................
255,007
$26,525,522
294,779
$32,903,635
Shares
issued
in
reinvestment
of
distributions
..........
242,555
24,932,223
Shares
redeemed
...............................
(472,660)
(49,579,960)
(668,878)
(74,622,388)
Net
increase
(decrease)
..........................
(217,653)
$(23,054,438)
(131,544)
$(16,786,530)
Class
R6
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
104
franklintempleton.com
Semiannual
Report
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
4,259,976
$613,317,507
2,778,171
$337,359,918
Shares
issued
in
reinvestment
of
distributions
..........
1,096,546
133,241,291
Shares
redeemed
...............................
(9,758,075)
(1,390,189,585)
(2,243,375)
(282,865,813)
Net
increase
(decrease)
..........................
(5,498,099)
$(776,872,078)
1,631,342
$187,735,396
Year
ended
September
30,
2023
Shares
sold
...................................
13,862,160
$1,552,849,083
2,621,003
$298,026,426
Shares
issued
in
reinvestment
of
distributions
..........
1,715,972
179,878,131
Shares
redeemed
...............................
(17,471,967)
(1,981,091,408)
(4,974,150)
(565,135,215)
Net
increase
(decrease)
..........................
(3,609,807)
$(428,242,325)
(637,175)
$(87,230,658)
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
2,115,469
$296,458,073
1,647,281
$204,995,817
Shares
issued
in
reinvestment
of
distributions
..........
1,402,113
170,553,029
Shares
redeemed
...............................
(3,193,965)
(453,168,571)
(3,386,530)
(423,878,813)
Net
increase
(decrease)
..........................
(1,078,496)
$(156,710,498)
(337,136)
$(48,329,967)
Year
ended
September
30,
2023
Shares
sold
...................................
4,935,450
$549,668,851
3,710,821
$417,749,821
Shares
issued
in
reinvestment
of
distributions
..........
2,262,495
237,226,372
Shares
redeemed
...............................
(7,969,253)
(861,195,491)
(6,322,439)
(717,331,617)
Net
increase
(decrease)
..........................
(3,033,803)
$(311,526,640)
(349,123)
$(62,355,424)
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
a
...................................
882,380,939
$1,986,619,085
13,923,112
$69,504,636
Shares
issued
in
reinvestment
of
distributions
..........
241,465,751
540,628,579
1,825,195
9,092,461
Shares
redeemed
...............................
(816,639,019)
(1,835,277,925)
(19,810,694)
(98,593,044)
Net
increase
(decrease)
..........................
307,207,671
$691,969,739
(4,062,387)
$(19,995,947)
Year
ended
September
30,
2023
Shares
sold
a
...................................
1,958,333,384
$4,444,609,074
25,502,060
$128,982,735
Shares
issued
in
reinvestment
of
distributions
..........
442,719,983
1,006,637,852
3,560,276
18,048,016
Shares
redeemed
...............................
(1,270,723,185)
(2,880,642,993)
(40,571,399)
(206,024,172)
Net
increase
(decrease)
..........................
1,130,330,182
$2,570,603,933
(11,509,063)
$(58,993,421)
Class
A1
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
105
franklintempleton.com
Semiannual
Report
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Shares
Amount
Shares
Amount
Class
A1
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
179,923,251
$406,041,724
8,316,490
$40,541,241
Shares
issued
in
reinvestment
of
distributions
..........
354,584,832
794,088,265
3,930,211
19,583,797
Shares
redeemed
...............................
(986,918,709)
(2,222,809,968)
(29,907,444)
(148,595,708)
Net
increase
(decrease)
..........................
(452,410,626)
$(1,022,679,979)
(17,660,743)
$(88,470,670)
Year
ended
September
30,
2023
Shares
sold
...................................
459,374,313
$1,043,033,441
16,661,587
$84,268,130
Shares
issued
in
reinvestment
of
distributions
..........
737,289,877
1,678,831,635
8,176,665
41,483,470
Shares
redeemed
...............................
(1,793,735,206)
(4,074,779,096)
(60,580,369)
(307,982,637)
Net
increase
(decrease)
..........................
(597,071,016)
$(1,352,914,020)
(35,742,117)
$(182,231,037)
Class
C
Class
C
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
118,303,404
$272,992,239
545,267
$2,698,623
Shares
issued
in
reinvestment
of
distributions
..........
51,479,732
117,539,105
147,673
729,671
Shares
redeemed
a
..............................
(385,636,767)
(883,670,561)
(3,019,133)
(14,818,227)
Net
increase
(decrease)
..........................
(215,853,631)
$(493,139,217)
(2,326,193)
$(11,389,933)
Year
ended
September
30,
2023
Shares
sold
...................................
313,172,661
$725,942,414
11,456,357
$57,859,125
Shares
issued
in
reinvestment
of
distributions
..........
119,089,335
276,353,693
546,291
2,755,118
Shares
redeemed
a
..............................
(829,490,789)
(1,918,266,141)
(22,658,314)
(113,640,611)
Net
increase
(decrease)
..........................
(397,228,793)
$(915,970,034)
(10,655,666)
$(53,026,368)
Class
R
Class
R
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
10,781,990
$23,865,943
234,377
$1,174,248
Shares
issued
in
reinvestment
of
distributions
..........
3,877,928
8,493,531
39,417
196,499
Shares
redeemed
...............................
(13,581,889)
(29,941,467)
(382,397)
(1,877,240)
Net
increase
(decrease)
..........................
1,078,029
$2,418,007
(108,603)
$(506,493)
Year
ended
September
30,
2023
Shares
sold
...................................
30,456,104
$67,677,054
798,409
$4,104,492
Shares
issued
in
reinvestment
of
distributions
..........
7,381,783
16,432,512
81,889
415,457
Shares
redeemed
...............................
(26,586,799)
(58,994,339)
(1,056,206)
(5,370,315)
Net
increase
(decrease)
..........................
11,251,088
$25,115,227
(175,908)
$(850,366)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
106
franklintempleton.com
Semiannual
Report
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
76,954,778
$172,885,719
4,649,010
$23,386,251
Shares
issued
in
reinvestment
of
distributions
..........
20,867,376
46,543,772
678,280
3,393,624
Shares
redeemed
...............................
(87,239,562)
(196,085,465)
(6,752,270)
(33,758,937)
Net
increase
(decrease)
..........................
10,582,592
$23,344,026
(1,424,980)
$(6,979,062)
Year
ended
September
30,
2023
Shares
sold
...................................
322,258,788
$726,763,497
12,838,713
$65,145,828
Shares
issued
in
reinvestment
of
distributions
..........
35,330,547
80,079,184
1,259,495
6,416,241
Shares
redeemed
...............................
(139,602,997)
(315,494,928)
(12,294,254)
(62,787,461)
Net
increase
(decrease)
..........................
217,986,338
$491,347,753
1,803,954
$8,774,608
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
604,279,429
$1,352,147,489
6,891,912
$34,607,934
Shares
issued
in
reinvestment
of
distributions
..........
163,518,976
363,049,228
761,896
3,808,690
Shares
redeemed
...............................
(743,839,459)
(1,654,756,861)
(10,708,555)
(53,879,538)
Net
increase
(decrease)
..........................
23,958,946
$60,439,856
(3,054,747)
$(15,462,914)
Year
ended
September
30,
2023
Shares
sold
...................................
1,459,603,354
$3,293,204,682
15,353,248
$78,738,231
Shares
issued
in
reinvestment
of
distributions
..........
316,588,066
714,220,227
1,584,307
8,062,313
Shares
redeemed
...............................
(1,301,500,962)
(2,925,474,063)
(22,516,109)
(114,885,083)
Net
increase
(decrease)
..........................
474,690,458
$1,081,950,846
(5,578,554)
$(28,084,539)
Franklin
Utilities
Fund
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
a
...................................
4,916,230
$93,655,812
Shares
issued
in
reinvestment
of
distributions
..........
2,677,521
50,938,559
Shares
redeemed
...............................
(10,001,694)
(191,717,445)
Net
increase
(decrease)
..........................
(2,407,943)
$(47,123,074)
Year
ended
September
30,
2023
Shares
sold
a
...................................
13,072,954
$271,677,836
Shares
issued
in
reinvestment
of
distributions
..........
1,986,664
42,069,637
Shares
redeemed
...............................
(14,408,448)
(299,448,551)
Net
increase
(decrease)
..........................
651,170
$14,298,922
Class
A1
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
107
franklintempleton.com
Semiannual
Report
Franklin
Utilities
Fund
Shares
Amount
Class
A1
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
1,941,419
$37,037,776
Shares
issued
in
reinvestment
of
distributions
..........
6,951,867
132,279,367
Shares
redeemed
...............................
(13,463,636)
(257,362,047)
Net
increase
(decrease)
..........................
(4,570,350)
$(88,044,904)
Year
ended
September
30,
2023
Shares
sold
...................................
5,639,347
$116,568,550
Shares
issued
in
reinvestment
of
distributions
..........
5,353,956
113,432,565
Shares
redeemed
...............................
(22,742,906)
(471,582,946)
Net
increase
(decrease)
..........................
(11,749,603)
$(241,581,831)
Class
C
Class
C
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
500,519
$9,557,528
Shares
issued
in
reinvestment
of
distributions
..........
531,619
10,038,689
Shares
redeemed
a
..............................
(2,481,653)
(47,217,421)
Net
increase
(decrease)
..........................
(1,449,515)
$(27,621,204)
Year
ended
September
30,
2023
Shares
sold
...................................
1,302,789
$27,051,481
Shares
issued
in
reinvestment
of
distributions
..........
439,989
9,300,965
Shares
redeemed
a
..............................
(5,010,140)
(103,489,997)
Net
increase
(decrease)
..........................
(3,267,362)
$(67,137,551)
Class
R
Class
R
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
404,720
$7,660,486
Shares
issued
in
reinvestment
of
distributions
..........
229,327
4,341,225
Shares
redeemed
...............................
(895,325)
(16,841,323)
Net
increase
(decrease)
..........................
(261,278)
$(4,839,612)
Year
ended
September
30,
2023
Shares
sold
...................................
1,136,867
$23,573,767
Shares
issued
in
reinvestment
of
distributions
..........
178,708
3,775,361
Shares
redeemed
...............................
(1,649,313)
(34,112,489)
Net
increase
(decrease)
..........................
(333,738)
$(6,763,361)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
108
franklintempleton.com
Semiannual
Report
3
.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the Trust are
also
officers
and/or
directors
of
the
following
subsidiaries:
Franklin
Utilities
Fund
Shares
Amount
Class
R6
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
1,788,386
$34,710,033
Shares
issued
in
reinvestment
of
distributions
..........
504,754
9,709,485
Shares
redeemed
...............................
(2,099,202)
(40,531,406)
Net
increase
(decrease)
..........................
193,938
$3,888,112
Year
ended
September
30,
2023
Shares
sold
...................................
3,653,507
$76,827,234
Shares
issued
in
reinvestment
of
distributions
..........
421,790
9,015,064
Shares
redeemed
...............................
(5,046,545)
(106,145,046)
Net
increase
(decrease)
..........................
(971,248)
$(20,302,748)
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
March
31,
2024
Shares
sold
...................................
4,705,104
$90,981,506
Shares
issued
in
reinvestment
of
distributions
..........
2,870,468
55,200,266
Shares
redeemed
...............................
(12,827,911)
(246,672,477)
Net
increase
(decrease)
..........................
(5,252,339)
$(100,490,705)
Year
ended
September
30,
2023
Shares
sold
...................................
11,834,588
$249,807,250
Shares
issued
in
reinvestment
of
distributions
..........
2,401,364
51,373,895
Shares
redeemed
...............................
(21,605,799)
(455,199,286)
Net
increase
(decrease)
..........................
(7,369,847)
$(154,018,141)
a
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
(unaudited)
109
franklintempleton.com
Semiannual
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:
For
the
period
ended
March
31,
2024,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
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
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.424%
0.437%
0.375%
3
.
Transactions
with
Affiliates
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
110
franklintempleton.com
Semiannual
Report
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:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Gross
effective
investment
management
fee
rate
........
0.458%
0.449%
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Class
A
...............................
0.25%
0.25%
0.25%
Class
A1
..............................
—%
—%
0.15%
Class
C
...............................
1.00%
1.00%
0.65%
Class
R
...............................
0.50%
0.50%
0.50%
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Class
A
...............................
0.25%
0.25%
Class
A1
..............................
0.15%
0.15%
Class
C
...............................
0.65%
0.65%
Class
R
...............................
0.50%
0.50%
3
.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
111
franklintempleton.com
Semiannual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. Effective
October
1,
2023,
the
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Funds
based
upon
relative
assets
and
relative
transactions.
Prior
to
October
1,
2023,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.016%
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
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
March
31,
2024,
the Funds
paid
transfer
agent
fees
as
noted
in
the
Statements of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
March
31,
2024,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$1,155,335
$589,814
$1,042,354
CDSC
retained
...........................
$30,829
$18,715
$665,117
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$9,948
$29,536
CDSC
retained
...........................
$14,158
$31,414
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Transfer
agent
fees
........................
$2,538,836
$2,518,771
$8,637,756
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Transfer
agent
fees
........................
$638,947
$898,657
3
.
Transactions
with
Affiliates
(continued)
d.
Sales
Charges/Underwriting
Agreements
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
112
franklintempleton.com
Semiannual
Report
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
DynaTech
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
$93,924,605
$1,317,539,651
$(1,375,121,453)
$—
$—
$36,342,803
36,342,803
$2,590,296
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
$—
$53,240,000
$(53,240,000)
$—
$—
$—
$55,388
Total
Affiliated
Securities
...
$93,924,605
$1,370,779,651
$(1,428,361,453)
$—
$—
$36,342,803
$2,645,684
Franklin
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
$69,954,846
$821,461,049
$(758,666,758)
$—
$—
$132,749,137
132,749,137
$3,301,835
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
$—
$102,859,000
$(102,859,000)
$—
$—
$—
$125,003
Total
Affiliated
Securities
...
$69,954,846
$924,320,049
$(861,525,758)
$—
$—
$132,749,137
$3,426,838
Franklin
Income
Fund
Non-Controlled
Affiliates
Dividends
Clarion
Partners
Real
Estate
Income
Fund,
Inc.,
Class
I
....
$94,020,602
$—
$—
$—
$(944,140)
$93,076,462
7,867,833
$3,162,869
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
645,794,493
8,025,875,400
(8,004,726,206)
666,943,687
666,943,687
31,141,299
Total
Non-Controlled
Affiliates
$739,815,095
$8,025,875,400
$(8,004,726,206)
$—
$(944,140)
$760,020,149
$34,304,168
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
$—
$158,276,000
$(67,063,000)
$—
$—
$91,213,000
91,213,000
$477,809
Total
Affiliated
Securities
...
$739,815,095
$8,184,151,400
$(8,071,789,206)
$—
$(944,140)
$851,233,149
$34,781,977
3
.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
113
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Funds have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until January
31,
2025.
4.
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:
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:
At
March
31,
2024,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
Franklin
U.S.
Government
Securities
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
$67,238,754
$236,866,272
$(276,159,634)
$—
$—
$27,945,392
27,945,392
$1,120,096
Total
Affiliated
Securities
...
$67,238,754
$236,866,272
$(276,159,634)
$—
$—
$27,945,392
$1,120,096
Franklin
Utilities
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.997%
$20,399,531
$345,571,631
$(335,906,434)
$—
$—
$30,064,728
30,064,728
$309,430
Total
Affiliated
Securities
...
$20,399,531
$345,571,631
$(335,906,434)
$—
$—
$30,064,728
$309,430
Franklin
DynaTech
Fund
Franklin
Income
Fund
Franklin
U.S.
Government
Securities
Fund
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
1,494,736,002
$
672,035,575
$
349,782,198
Long
term
.............................
457,952,751
Total
capital
loss
carryforwards
............
$1,494,736,002
$672,035,575
$807,734,949
Franklin
Dynatech
Fund
Late-year
ordinary
loss
...........................
$30,489,840
3
.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
114
franklintempleton.com
Semiannual
Report
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.
5.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
March
31,
2024,
were
as
follows:
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
a
a
a
a
Cost
of
investments
.......................
$10,254,125,860
$4,978,332,670
$71,032,045,135
Unrealized
appreciation
.....................
$14,306,401,433
$14,039,483,253
$4,113,598,847
Unrealized
depreciation
.....................
(20,929,183)
(140,672,855)
(2,693,604,809)
Net
unrealized
appreciation
(depreciation)
.......
$14,285,472,250
$13,898,810,398
$1,419,994,038
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
a
a
a
Cost
of
investments
.......................
$2,757,321,009
$2,806,237,656
Unrealized
appreciation
.....................
$2,316,314
$2,882,817,307
Unrealized
depreciation
.....................
(298,883,009)
(32,584,231)
Net
unrealized
appreciation
(depreciation)
.......
$(296,566,695)
$2,850,233,076
Franklin
DynaTech
Fund
Franklin
Growth
Fund
Franklin
Income
Fund
Purchases
..............................
$1,532,344,281
$619,545,589
$15,812,605,580
Sales
..................................
$2,669,435,199
$1,339,118,195
$16,664,488,518
Franklin
U.S.
Government
Securities
Fund
Franklin
Utilities
Fund
Purchases
..............................
$422,652,147
$187,376,117
Sales
..................................
$524,975,915
$660,527,854
4.
Income
Taxes
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
115
franklintempleton.com
Semiannual
Report
At
March
31,
2024,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
6.
Credit
Risk
and
Defaulted
Securities
At
March
31,
2024,
Franklin
Income
Fund had 22.9%
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.
Certain
or
all
Funds held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
March
31,
2024,
the
aggregate
value
of
these
securities
for
Franklin
Income
Fund was $202,168,477, representing 0.3%
of
the
Fund's
net
assets.
The
Funds
discontinue
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provide
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying Schedule
of
Investments.
7.
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
March
31,
2024,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Franklin
Income
Fund
Securities
lending
transactions
a
:
Equity
investments
b
........................
$91,213,000
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Growth
Fund
25,413
Canva,
Inc.
................................
11/08/21
$
43,323,040
$
27,107,059
2,353
Canva,
Inc.,
A
..............................
11/08/21
4,011,298
2,509,854
94
Canva,
Inc.,
A-3
.............................
11/08/21
160,247
100,266
8
Canva,
Inc.,
A-4
.............................
11/08/21
13,638
8,533
5
Canva,
Inc.,
A-5
.............................
11/08/21
8,524
5,333
96,603
Checkout
Payments
Group
Ltd.,
B
...............
1/11/22
30,000,062
8,593,062
822,494
Gusto,
Inc.,
E
...............................
7/13/21
24,999,977
26,071,343
849,894
OneTrust
LLC,
C
............................
4/01/21
16,666,676
13,343,113
540,043
Stripe,
Inc.,
B
...............................
5/18/21
21,671,052
14,041,118
1,759,545
Stripe,
Inc.,
I
...............................
3/15/23
-
5/08/23
35,426,925
45,748,170
5.
Investment
Transactions
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
116
franklintempleton.com
Semiannual
Report
8.
Other
Derivative
Information
At
March
31,
2024,
investments
in
derivative
contracts
are
reflected
in
the
Statements
of
Assets
and
Liabilities
as
follows:
For
the
period
ended
March
31,
2024,
the
effect
of
derivative
contracts
in
the
Statements
of
Operations
was
as
follows:
For
the
period
ended
March
31,
2024,
the
average
month
end
notional
amount
of
futures
contracts
and
options
represented
$5,259,830,357
and
$64,154,671,
respectively.
See
Note
1(d)
regarding
derivative
financial
instruments. 
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Growth
Fund
(continued)
Total
Restricted
Securities
(Value
is
0.7%
of
Net
Assets)
..............
$176,281,439
$137,527,851
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
$
29,561,684
a
Variation
margin
on
futures
contracts
$
Equity
contracts
...........
Investments
in
securities,
at
value
Options
written,
at
value
75,211,500
Total
....................
$29,561,684
$75,211,500
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
period
end
is
separately
reported
within
the
Statement
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
Period
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Period
Franklin
Income
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
  appreciation
(depreciation)
on:
Interest
rate
contracts
..........
Futures
contracts
$(41,979,301)
Futures
contracts
$194,979,258
Equity
Contracts
..............
Written
options
167,558,559
Written
options
(3,221,508)
Total
.......................
$125,579,258
$191,757,750
7.
Restricted
Securities
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
117
franklintempleton.com
Semiannual
Report
9.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
March
31,
2024,
investments
in
“affiliated
companies”
were
as
follows:
10.
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
January
31,
2025.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
March
31,
2024,
the
Funds
did
not
use
the
Global
Credit
Facility.
11.
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
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
Franklin
Growth
Fund
Non-Controlled
Affiliates
Dividends
OneTrust
LLC,
C
.....
$
12,730,065
$
$
$
$
a
$
a
a
$
Total
Affiliated
Securities
(Value
is
—%
of
Net
Assets)
..........
$12,730,065
$—
$—
$—
$—
$—
$—
a
As
of
March
31,
2024,
no
longer
an
affiliate.
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
118
franklintempleton.com
Semiannual
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
March
31,
2024,
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
...................
$
281,592,000
$
$
$
281,592,000
Automobile
Components
.................
1,607,500
1,607,500
Automobiles
..........................
351,580,000
351,580,000
Biotechnology
.........................
80,187,800
68,994,628
149,182,428
Broadline
Retail
.......................
2,106,192,000
2,106,192,000
Capital
Markets
........................
439,840,500
439,840,500
Communications
Equipment
..............
43,497,000
43,497,000
Construction
&
Engineering
...............
194,850,000
194,850,000
Diversified
Consumer
Services
............
44,116,000
44,116,000
Electronic
Equipment,
Instruments
&
Components
........................
57,675,000
91,868,684
149,543,684
Energy
Equipment
&
Services
.............
156,800,000
156,800,000
Entertainment
.........................
18,948,411
18,948,411
Financial
Services
......................
1,097,749,000
1,097,749,000
Ground
Transportation
..................
269,465,000
269,465,000
Health
Care
Equipment
&
Supplies
.........
866,253,500
866,253,500
Health
Care
Providers
&
Services
..........
158,367,750
158,367,750
Health
Care
Technology
.................
46,338,000
6,762,145
53,100,145
Hotels,
Restaurants
&
Leisure
.............
223,341,800
223,341,800
Interactive
Media
&
Services
..............
1,952,205,000
1,952,205,000
IT
Services
...........................
754,436,440
754,436,440
Life
Sciences
Tools
&
Services
............
785,515,500
785,515,500
Pharmaceuticals
.......................
567,691,000
567,691,000
Professional
Services
...................
14,143,800
14,143,800
Semiconductors
&
Semiconductor
Equipment
.
5,950,333,450
155,345,663
6,105,679,113
Software
.............................
7,304,728,736
7,304,728,736
Technology
Hardware,
Storage
&
Peripherals
.
385,830,000
385,830,000
Trading
Companies
&
Distributors
..........
26,999,000
26,999,000
Warrants
...............................
a
Short
Term
Investments
...................
36,342,803
36,342,803
Total
Investments
in
Securities
...........
$24,197,678,579
$341,919,531
b
$—
$24,539,598,110
Franklin
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
738,498,183
738,498,183
Automobiles
..........................
84,235,579
84,235,579
Beverages
...........................
551,475,237
551,475,237
Biotechnology
.........................
305,822,856
305,822,856
Broadline
Retail
.......................
818,767,187
818,767,187
Building
Products
......................
297,158,674
297,158,674
Capital
Markets
........................
812,630,278
812,630,278
Chemicals
...........................
559,928,824
559,928,824
Commercial
Services
&
Supplies
...........
118,080,000
118,080,000
Construction
Materials
..................
205,299,694
205,299,694
Consumer
Staples
Distribution
&
Retail
......
140,407,807
140,407,807
Electric
Utilities
........................
163,318,554
163,318,554
Electrical
Equipment
....................
236,342,698
236,342,698
11.
Fair
Value
Measurements
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
119
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Growth
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Electronic
Equipment,
Instruments
&
Components
........................
$
559,821,726
$
$
$
559,821,726
Entertainment
.........................
56,326,419
56,326,419
Financial
Services
......................
790,249,303
790,249,303
Food
Products
........................
55,348,620
55,348,620
Ground
Transportation
..................
639,964,751
639,964,751
Health
Care
Equipment
&
Supplies
.........
750,910,495
750,910,495
Health
Care
Providers
&
Services
..........
192,137,906
192,137,906
Health
Care
Technology
.................
88,971,972
88,971,972
Hotels,
Restaurants
&
Leisure
.............
217,626,371
217,626,371
Industrial
REITs
.......................
72,636,716
72,636,716
Interactive
Media
&
Services
..............
676,103,857
676,103,857
IT
Services
...........................
92,205,895
27,107,059
119,312,954
Life
Sciences
Tools
&
Services
............
1,040,572,318
1,040,572,318
Machinery
............................
727,654,656
727,654,656
Pharmaceuticals
.......................
735,993,595
735,993,595
Professional
Services
...................
68,291,927
68,291,927
Semiconductors
&
Semiconductor
Equipment
.
2,187,271,973
2,187,271,973
Software
.............................
3,453,254,020
22,634,180
3,475,888,200
Technology
Hardware,
Storage
&
Peripherals
.
562,418,904
562,418,904
Textiles,
Apparel
&
Luxury
Goods
..........
165,173,233
165,173,233
Trading
Companies
&
Distributors
..........
200,973,845
200,973,845
Water
Utilities
.........................
70,877,767
70,877,767
Convertible
Preferred
Stocks
................
87,786,612
87,786,612
Preferred
Stocks
.........................
170,114,240
170,114,240
Short
Term
Investments
...................
132,749,137
132,749,137
Total
Investments
in
Securities
...........
$18,569,500,977
$170,114,240
c
$137,527,851
$18,877,143,068
Franklin
Income
Fund
Assets:
Investments
in
Securities:
d
Common
Stocks
.........................
14,397,495,952
14,397,495,952
Management
Investment
Companies
.........
93,076,462
93,076,462
Equity-Linked
Securities
...................
12,733,257,159
12,733,257,159
Convertible
Preferred
Stocks
................
375,168,000
375,168,000
Preferred
Stocks
.........................
15,960,000
15,960,000
Corporate
Bonds
........................
35,078,402,841
35,078,402,841
Senior
Floating
Rate
Interests
...............
266,398,096
266,398,096
U.S.
Government
and
Agency
Securities
.......
8,394,972,653
8,394,972,653
Asset-Backed
Securities
...................
110,792,902
110,792,902
Mortgage-Backed
Securities
................
274,008,237
274,008,237
Short
Term
Investments
...................
758,156,687
758,156,687
Total
Investments
in
Securities
...........
$15,639,857,101
$56,857,831,888
$—
$72,497,688,989
Other
Financial
Instruments:
Futures
contracts
........................
$29,561,684
$—
$—
$29,561,684
Total
Other
Financial
Instruments
.........
$29,561,684
$—
$—
$29,561,684
Liabilities:
Other
Financial
Instruments:
Options
written
..........................
$
75,211,500
$
$
$
75,211,500
Total
Other
Financial
Instruments
.........
$75,211,500
$—
$—
$75,211,500
11.
Fair
Value
Measurements
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
120
franklintempleton.com
Semiannual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the period.
12.
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.
Level
1
Level
2
Level
3
Total
Franklin
U.S.
Government
Securities
Fund
Assets:
Investments
in
Securities:
d
U.S.
Government
and
Agency
Securities
.......
$
$
15,426,641
$
$
15,426,641
Mortgage-Backed
Securities
................
2,417,382,281
2,417,382,281
Short
Term
Investments
...................
27,945,392
27,945,392
Total
Investments
in
Securities
...........
$27,945,392
$2,432,808,922
$—
$2,460,754,314
Franklin
Utilities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Construction
&
Engineering
...............
65,520,000
65,520,000
Electric
Utilities
........................
3,280,023,750
3,280,023,750
Gas
Utilities
..........................
42,959,000
42,959,000
Independent
Power
and
Renewable
Electricity
Producers
..........................
354,496,799
354,496,799
Multi-Utilities
..........................
1,402,607,000
192,656,233
1,595,263,233
Oil,
Gas
&
Consumable
Fuels
.............
228,813,000
228,813,000
Water
Utilities
.........................
33,345,000
25,985,222
59,330,222
Short
Term
Investments
...................
30,064,728
30,064,728
Total
Investments
in
Securities
...........
$5,437,829,277
$218,641,455
e
$—
$5,656,470,732
a
Includes
financial
instruments
determined
to
have
no
value.
b
Includes
foreign
securities
valued
at
$341,919,531,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$170,114,240,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
d
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
e
Includes
foreign
securities
valued
at
$218,641,455,
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.
11.
Fair
Value
Measurements
(continued)
Franklin
Custodian
Funds
Notes
to
Financial
Statements
(unaudited)
121
franklintempleton.com
Semiannual
Report
Abbreviations
Currency
USD
United
States
Dollar
Selected
Portfolio
ADR
American
Depositary
Receipt
CME
Chicago
Mercantile
Exchange
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
Franklin
Custodian
Funds
Shareholder
Information
122
franklintempleton.com
Semiannual
Report
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
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Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
Item 4.
Principal Accountant Fees and Services.  N/A
 
 
Item 5. Audit Committee
 
of Listed Registrants.  N/A
 
 
Item 6. Schedule of Investments.          N/A


 
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.   N/A
 
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                         N/A
 
 
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
 
 
Item 10. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
 
 
 
Item 11. Controls and Procedures.
 
(a) Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

 
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
 
(b) Changes in Internal Controls
. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected or is reasonably likely to materially affect the internal control over financial reporting.


Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                             N/A
 


Item 13. Recovery of Erroneously Awarded Compensation.
 
(a) N/A


(b) N/A
 
 
Item 14. Exhibits.
 
(a)(1) Code of Ethics
 
 
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(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 Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
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\CHRISTOPHER KINGS _________________
Christopher Kings
      Chief Executive Officer - Finance and Administration
Date  May 28, 2024


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\CHRISTOPHER KINGS _________________
Christopher Kings
      Chief Executive Officer - Finance and Administration
Date  May 28, 2024
 
 
By S\JEFFREY WHITE______________________
      Jeffrey White
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  May 28, 2024
 
EX-99.CODE ETH 2 codeofethics.htm
Code of Ethics for Principal Executives & Senior Financial Officers
 
 

Procedures
 
Revised December 19, 2014
 
 
 

FRANKLIN TEMPLETON FUNDS

 
CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND SENIOR FINANCIAL OFFICERS

I.
            
Covered Officers and Purpose of the
Code

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

II.
            
Other Policies and
Procedures

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

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

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

2


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

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

3


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

IV.
            
Disclosure and
Compliance

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

V.
            
Reporting and Accountability

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

4


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

VI.
            
Other Policies and
Procedures

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

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

VII.
            
Amendments

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

VIII.
            
Confidentiality

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

IX.
            
Internal
Use

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

EXHIBIT A

 
Persons Covered by the Franklin Templeton Funds Code of Ethics
January 22, 2024
 
 

FRANKLIN GROUP OF FUNDS

 
Edward
Perks                           President and Chief Executive Officer – Investment Management
Greg
Johnson                           Chairman of the Board and Vice
President
Michael
McCarthy                      President and Chief Executive Officer – Investment Management
Sonal Desai,
Ph
D                     President and Chief Executive Officer – Investment Management
Christopher
Kings
                      Chief Executive Officer – Finance and
Administration
Jeffrey W. White                        Chief Financial Officer, Chief Accounting Officer and Treasurer
 
           
 

FRANKLIN MUTUAL SERIES FUNDS

 
Christian K. Correa                    Chief Executive Officer – Investment Management
Christopher Kings                     Chief Executive Officer – Finance and Administration
Jeffrey W. White                        Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

 
Brooks
Ritchey                          President and Chief Executive Officer – Investment Management
Christopher Kings
                     Chief Executive Officer, Finance and
Administration
Jeffrey W. White                        Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 

TEMPLETON GROUP OF FUNDS

 
Greg
Johnson                           Chairman of the Board and Vice
President
Manraj
S.
Sekhon                      President and Chief Executive Officer – Investment Management
Michael Hasenstab, Ph.D.          President and Chief Executive Officer – Investment Management
Christopher Kings                     Chief Executive Officer, Finance and
Administration
Jeffrey W. White                        Chief Financial Officer, Chief Accounting Officer and Treasurer

Exhibit B ACKNOWLEDGMENT FORM

 

Franklin Templeton Funds Code of Ethics

For Principal Executives and Senior Financial Officers
 
 

Instructions:

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

Signature
 
Date signed
 
EX-99.CERT 3 fcf302.htm
I, Christopher Kings, certify that:
1.
      
I have reviewed this report on Form N-CSR of Franklin Custodian Funds;
2.
      
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;   
3.
      
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.
      
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940)
and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 
5.
      
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 

5/28/2024
 
 
S\CHRISTOPHER KINGS

Christopher Kings
Chief Executive Officer - Finance and Administration
 

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

5/28/2024

S\JEFFREY WHITE

Jeffrey White
Chief Financial Officer, Chief Accounting Officer and Treasurer

 
EX-99.906 CERT 4 fcf906.htm
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Christopher Kings, Chief Executive Officer of the Franklin Custodian Funds (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1.
                 
The periodic report on Form N-CSR of the Registrant for the period ended 3/31/2024 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
2.
                 
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  5/28/2024
 
                                                                S\CHRISTOPHER KINGS
                                                                                                                                               
                                                                Christopher Kings
Chief Executive Officer - Finance and Administration
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Jeffrey White, Chief Financial Officer of the Franklin Custodian Funds (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1.
                 
The periodic report on Form N-CSR of the Registrant for the period ended 3/31/2024 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.
                 
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Dated:  5/28/2024
                                                                S\JEFFREY WHITE
                                                                                                                                               
                                                                Jeffrey White
Chief Financial Officer, Chief Accounting Officer and Treasurer