Franklin
Convertible
Securities
Fund
Franklin
Equity
Income
Fund
Franklin
Managed
Income
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$–,
$747,792
and
$–,
respectively)
Unaffiliated
issuers
......................................
$3,989,231
$48,969,577
$17,062,687
Non-controlled
affiliates
(Note
3f)
...........................
1,682,048
2,305,368
1,331,239
Interest:
Unaffiliated
issuers
......................................
16,048,303
—
64,615,642
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
(1,786)
(162,623)
(55,810)
Non-controlled
affiliates
(Note
3f)
...........................
2,192
177,747
126,627
Other
income
(Note
1f)
.....................................
—
11,326
21,051
Total
investment
income
.................................
21,719,988
51,301,395
83,101,436
Expenses:
Management
fees
(Note
3
a
)
.................................
6,104,530
8,555,884
9,624,990
Distribution
fees:
(Note
3c
)
Class
A
..............................................
1,184,194
3,819,915
3,747,900
Class
C
..............................................
336,978
507,677
572,211
Class
R
..............................................
—
30,300
5,816
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
521,885
1,586,370
1,351,404
Class
C
..............................................
37,171
52,785
51,729
Class
R
..............................................
—
6,283
1,044
Class
R6
.............................................
17,124
24,441
22,112
Advisor
Class
..........................................
846,470
186,657
90,182
Custodian
fees
...........................................
7,948
11,063
9,571
Reports
to
shareholders
fees
................................
85,441
106,286
102,453
Registration
and
filing
fees
..................................
68,041
100,109
85,616
Professional
fees
.........................................
34,208
27,361
32,394
Trustees'
fees
and
expenses
................................
16,243
22,414
21,324
Other
..................................................
51,651
50,920
83,147
Total
expenses
.......................................
9,311,884
15,088,465
15,801,893
Expenses
waived/paid
by
affiliates
(Note
3f
and
3g)
............
(121,292)
(165,622)
(75,219)
Net
expenses
.......................................
9,190,592
14,922,843
15,726,674
Net
investment
income
..............................
12,529,396
36,378,552
67,374,762
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
21,284,590
141,521,258
53,601,358
Non-controlled
affiliates
(Note
3f)
..........................
—
—
10,679,735
Written
options
.........................................
—
—
1,484,450
Foreign
currency
transactions
..............................
—
21,594
13,497
Futures
contracts
.......................................
—
—
(7,398,880)
Net
realized
gain
(loss)
................................
21,284,590
141,542,852
58,380,160
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
270,438,654
471,379,785
227,351,578
Non-controlled
affiliates
(Note
3f)
..........................
—
—
(7,365,284)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
—
3,212
(4,607)
Written
options
.........................................
—
—
(1,269,346)
Futures
contracts
.......................................
—
—
8,461,251
Net
change
in
unrealized
appreciation
(depreciation)
..........
270,438,654
471,382,997
227,173,592
Net
realized
and
unrealized
gain
(loss)
..........................
291,723,244
612,925,849
285,553,752
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$304,252,640
$649,304,401
$352,928,514