Franklin DynaTech A (FKDNX) N-CSRS Certified semi-annual shareholder report (management investment company)

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)

Craig S. Tyle, 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: 3/31/21

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Custodian

Funds

March

31,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

semiannual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

March

31,

2021,

the

U.S.

economy

continued

to

recover

from

the

effects

of

the

novel

coronavirus

(COVID-19)

pandemic.

U.S.

gross

domestic

product

(GDP)

reported

in

2020’s

third

and

fourth

quarters

showed

a

substantial

recovery

from

the

contraction

experienced

in

2020’s

first

half,

based

on

increased

business

and

residential

investment

and

consumer

spending.

The

U.S.

economy

also

showed

signs

of

strength

during

2021’s

first

quarter

as

federal

assistance

programs,

the

acceleration

of

COVID-19

vaccinations

and

robust

corporate

earnings

boosted

U.S.

equity

markets.

Before

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

lowered

the

federal

funds

rate

twice

in

March

2020

and

implemented

broad

quantitative

easing

measures

to

support

credit

markets.

During

the

reporting

period,

the

Federal

Reserve

held

its

key

rate

unchanged

at

0.25%,

but

it

continued

quantitative

easing

and

adjusted

its

policy

in

August

2020

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

The

10-year

U.S.

Treasury

yield

was

0.69%

on

September

30,

2020,

and

it

increased

to

1.74%

by

the

end

of

March

2021.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

rose

18.14%,

(the

index

increasing

from

3,363.00

to

3,972.89).

1,2

Investment-grade

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-2.73%

total

return

(an

index

decrease

from

2,376.13

to

2,311.35),

which

includes

reinvestment

of

income

and

distributions.

3

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

We

believe

active,

professional

investment

management

serves

investors

well.

We

also

recognize

the

important

role

of

financial

advisors

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-positioned

for

the

years

ahead.

Franklin

Custodian

Funds’

semiannual

report,

covering

Franklin

DynaTech

Fund,

Franklin

Focused

Growth

Fund,

Franklin

Growth

Fund,

Franklin

Income

Fund,

Franklin

U.S.

Government

Securities

Fund

and

Franklin

Utilities

Fund,

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

Please

remember

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Custodian

Funds

This

letter

reflects

our

analysis

and

opinions

as

of

March

31,

2021,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2021,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

its

total

return,

which

was:

S&P

500

+19.07%

(index

total

return

resulting

in

an

increase

from

6,918.83

to

8,238.48).

3.

Sources:

Morningstar

and

Bloomberg

Barclays

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

DynaTech

Fund

4

Franklin

Focused

Growth

Fund

10

Franklin

Growth

Fund

15

Franklin

Income

Fund

20

Franklin

U.S.

Government

Securities

Fund

27

Franklin

Utilities

Fund

32

Financial

Highlights

and

Statements

of

Investments

37

Financial

Statements

103

Notes

to

Financial

Statements

113

Shareholder

Information

139

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

advanced

strongly

during

the

six

months

ended

March

31,

2021.

Stocks

continued

to

recover

from

the

shock

of

the

novel

coronavirus

(COVID-19)

pandemic

amid

a

rebound

in

economic

activity

as

investors

anticipated

a

continued

return

to

normalcy.

Two

additional

rounds

of

fiscal

stimulus,

including

direct

payments

to

households,

passed

in

December

2020

and

March

2021,

also

supported

stock

prices.

In

November

2020,

the

development

of

several

vaccines

bolstered

investor

confidence,

and

the

implementation

of

mass

vaccination

programs

in

early

2021

led

to

further

gains,

as

U.S.

equities

reached

an

all-time

high

in

March

2021.

The

U.S.

economy

was

severely

impacted

by

the

pandemic,

as

business

closures

and

restrictions

on

gatherings

disrupted

everyday

life,

but

record

annualized

third-quarter

2020

gross

domestic

product

(GDP)

growth

reported

during

the

period

indicated

a

rebound.

Economic

conditions

continued

to

improve,

and

the

economy

grew

at

a

modest

annualized

pace

in

2020’s

fourth

quarter.

Similarly,

the

unemployment

rate

declined,

reaching

6.0%

in

March

2021

as

jobless

claims

fell

and

the

number

of

employment

openings

began

to

increase.

1

To

support

the

U.S.

economy,

the

U.S.

Federal

Reserve

(Fed)

kept

the

federal

funds

target

rate

at

a

record-low

range

of

0.00%–0.25%.

The

Fed

also

continued

quantitative

easing

measures

aimed

at

ensuring

credit

flows

to

borrowers

and

supporting

credit

markets

with

open-ended

bond

purchasing.

Furthermore,

the

Fed

reiterated

that

interest

rates

would

potentially

remain

low,

even

if

inflation

moderately

exceeded

its

2%

target.

The

combination

of

large

stimulus

payments,

increasing

asset

prices

and

rising

savings

during

lockdowns

led

to

the

strengthening

of

household

balance

sheets,

as

wealth

levels

rose

and

credit

card

debt

declined

in

2020’s

fourth

quarter.

Nonetheless,

areas

of

economic

weakness

remained,

including

total

employment

numbers

that

stayed

well

below

pre-pandemic

levels.

Consumer

spending

increased

significantly

from

its

low

after

the

pandemic’s

onset

but

remained

muted

relative

to

spending

in

early

2020.

However,

the

combination

of

higher

household

wealth

and

pent-up

consumer

demand

led

investors

to

anticipate

a

surge

in

spending.

Consequently,

inflation

expectations

increased

to

the

highest

level

in

more

than

10

years

near

period-end.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

March

31,

2021.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Bureau

of

Labor

Statistics.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Semiannual

Report

Franklin

DynaTech

Fund

This

semiannual

report

for

Franklin

DynaTech

Fund

covers

the

period

ended

March

31,

2021.

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

+12.71%

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

total

return

a

+12.44%.

1

Also

for

comparison,

the

broad

U.S.

stock

market

as

measured

by

the

Standard

&

Poor’s

500

Index

(S&P

500),

posted

a

+19.07%

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

7

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry

to

target

leaders

and

emerging

leaders.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

Manager’s

Discussion

During

the

reporting

period,

the

information

technology

(IT)

sector

contributed

most

to

the

Fund’s

absolute

performance.

Other

sector

contributors

during

the

six-month

period,

included

communication

services,

consumer

discretionary

and

health

care.

Within

IT,

contributors

included

internet

software

solutions

provider

HubSpot,

information

and

services

firm

Microsoft

and

automotive

artificial

intelligence

solutions

provider

Cerence,

which

builds

automotive

cognitive

assistance

solutions

to

power

intuitive

interactions

between

automobiles,

drivers

and

passengers.

Digital

and

mobile

payment

provider

PayPal,

and

cloud-based

communication

platform

Twilio,

which

offers

a

comprehensive

web-

based

communication

services

solution,

also

contributed.

Additionally,

most

of

the

Fund’s

positions

in

semiconductor

Portfolio

Composition

3/31/21

%

of

Total

Net

Assets

Software

20.1%

IT

Services

15.1%

Internet

&

Direct

Marketing

Retail

13.1%

Interactive

Media

&

Services

9.4%

Semiconductors

&

Semiconductor

Equipment

7.7%

Health

Care

Equipment

&

Supplies

6.3%

Life

Sciences

Tools

&

Services

4.6%

Entertainment

4.2%

Health

Care

Technology

2.5%

Capital

Markets

2.0%

Automobiles

1.8%

Biotechnology

1.7%

Equity

Real

Estate

Investment

Trusts

(REITs)

1.4%

Other

8.0%

Short-Term

Investments

&

Other

Net

Assets

2.1%

1.

Source:

Morningstar.

Frank

Russell

Company

is

the

source

and

owner

of

the

trademarks,

service

marks

and

copyrights

related

to

the

Russell

Indexes.

Russell

®

is

a

trademark

of

Frank

Russell

Company.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

42

.

Franklin

DynaTech

Fund

5

franklintempleton.com

Semiannual

Report

chip

makers

and

semiconductor

fabrication

equipment

manufacturers

posted

high,

double-digit

percentage

gains,

including

Lam

Research

and

ASML

Holding.

Within

the

communication

services

sector,

two

of

the

Fund’s

largest

overall

contributors

were

Google’s

parent

holding

company,

Alphabet,

and

Singapore-based

consumer

internet

company

Sea.

Multinational

technology

giant

Alphabet

continued

to

garner

market

share

and

strong

profitability

from

its

internet-related

services

and

products,

which

include

online

advertising

technologies,

its

ubiquitous

search

engine,

cloud

computing,

software,

and

hardware.

Sea,

meanwhile,

has

an

unusual

business

model

that

has

catalyzed

a

tremendous

spike

in

demand

across

the

three

highly

popular

segments

in

which

it

operates:

digital

gaming/

entertainment,

e-commerce,

and

digital

financial

services.

The

stock

continued

to

rise

sharply

from

its

pandemic

lows

as

its

gaming

division,

Garena,

has

emerged

as

the

dominant

player

in

Southeast

Asia

and

Taiwan,

while

its

online

shopping

platform,

Shopee,

is

now

the

e-commerce

leader

in

that

region,

having

surpassed

industry

giant

Alibaba

Group

Holding

(also

held

by

the

Fund)

along

the

way.

The

company

also

saw

its

fintech

push

gain

traction

as

total

payment

volumes

have

increased

along

with

the

number

of

consumers

utilizing

Sea’s

mobile

wallet

services.

Sea

also

secured

a

digital

banking

license

in

Singapore,

paving

the

way

for

it

to

become

a

leading

regional

financial

services

player.

Within

the

consumer

discretionary

sector,

electric

vehicle

manufacturer

Tesla

had

a

positive

impact

on

absolute

returns.

Tesla

had

a

banner

half-year

as

it

was

added

to

the

S&P

500

Index

(and

other

major

indexes),

thereby

increasing

the

bullish

momentum

that

has

powered

a

multifold

increase

in

its

share

price.

Tesla

continued

to

demonstrate

its

ability

to

grow

quickly

amid

soaring

vehicle

deliveries

and

recent

quarterly

earnings

reports

passed

consensus

expectations.

Investors

were

further

encouraged

by

the

strong

reception

of

its

more-affordable

Model

Y

vehicle

in

China

as

the

company

quickly

progressed

to

full

production

capacity

in

the

country

after

initial

production

began

during

the

fourth

quarter

of

2020.

The

health

care

sector

also

contributed

with

robust

overall

returns

from

Wuxi

Biologics

Cayman,

which

engages

in

discovery,

development

and

manufacturing

of

biologics.

Health

care

providers

such

as

Guardant

Health

and

UnitedHealth

Group

also

booked

solid,

double-digit

percentage

gains

during

the

six-month

period.

Conversely,

the

real

estate

sector

detracted,

though

the

impact

was

muted

due

to

the

portfolio’s

low

exposure

(averaging

just

over

2%

of

total

net

assets).

All

of

the

other

major

detractors

were

individual

securities

that

reduced

our

overall

gains

in

other

sectors,

including

Alibaba

Group

Holding

in

the

consumer

discretionary

sector;

iRhythm

Technologies

(not

held

at

period-end)

in

health

care;

and

saleforce.com

in

IT.

Chinese

e-commerce

giant

Alibaba’s

stock

has

languished

somewhat

recently

despite

delivering

good

financial

results.

This

was

due,

in

part,

to

recent

controversy

around

founder

Jack

Ma

and

the

aborted

IPO

for

Ant

Financial

(not

held

by

the

Fund),

of

which

Alibaba

holds

a

one-third

stake.

Antitrust

concerns

in

China

have

been

an

added

drag.

Furthermore,

Alibaba

was

facing

stiffer

competition

in

the

e-commerce

space

from

JD.com

and

discount-buying

upstart

Pinduoduo,

both

of

which

were

also

held

by

the

fund.

Cardiac

device

maker

iRhythm

saw

its

stock

price

soar

in

2020

on

strong

revenue

growth

driven

by

increased

demand

for

its

heart

sensors.

Patients

can

wear

iRhythm’s

biosensors

to

help

detect

heart

arrhythmia,

and

investors

were

attracted

to

its

strong

business

momentum

and

the

promise

of

a

large

addressable

market.

This

uptrend

reversed

into

a

considerable

first

quarter

2021

selloff

based

largely

on

concerns

over

falling

Medicare

reimbursement

rates

for

the

company’s

products

when

compared

to

previous

levels.

We

ultimately

liquidated

the

Fund’s

position

by

period-end.

The

equity

value

of

salesforce.com,

which

through

its

software-as-a-service

cloud

computing

platform

manages

customer

information

for

organizations

of

all

sizes,

has

had

difficulty

regaining

traction

after

reaching

a

record

high

in

August

2020.

While

Salesforce

posted

revenue

growth

in

Top

10

Holdings

3/31/21

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Amazon.com,

Inc.

6.7%

Internet

&

Direct

Marketing

Retail,

United

States

Microsoft

Corp.

3.1%

Software,

United

States

Alphabet,

Inc.

2.8%

Interactive

Media

&

Services,

United

States

Facebook,

Inc.

2.5%

Interactive

Media

&

Services,

United

States

PayPal

Holdings,

Inc.

2.4%

IT

Services,

United

States

Sea

Ltd.

2.4%

Entertainment,

Taiwan

Shopify,

Inc.

2.4%

IT

Services,

Canada

ServiceNow

,

Inc.

2.2%

Software,

United

States

NVIDIA

Corp.

2.0%

Semiconductors

&

Semiconductor

Equipment,

United

States

Adyen

NV

1.9%

IT

Services,

Netherlands

Franklin

DynaTech

Fund

6

franklintempleton.com

Semiannual

Report

its

2021

fiscal

year,

some

investors

grew

concerned

about

Salesforce’s

announced

acquisition

of

remote

work

and

collaboration

platform

provider

Slack

(not

held

by

the

Fund),

which

among

other

factors

had

the

potential

to

push

the

company’s

earnings

per

share

(EPS)

into

negative

territory

in

2021.

Specifically,

amortization

of

purchased

intangible

assets

(when

a

company

realizes

the

cost

of

a

purchase

over

time),

and

stock-based

compensation

was

slated

to

be

considerable.

Partially

as

a

result

of

the

deal,

Salesforce’s

EPS

for

fiscal

year

2022

was

downwardly

revised,

which

contrasted

sharply

with

EPS

for

the

just-completed

fiscal

year.

Despite

Salesforce’s

recent

market

headwinds,

the

negative

impact

of

elevated

spending

levels

was

by

design,

the

company

still

generates

healthy

free

cash

flow,

and

we

believe

demand

for

its

best-in-class,

cloud-based

services

will

continue

to

grow

at

a

rapid

pace

for

years

to

come.

Thank

you

for

your

continued

participation

in

Franklin

Dynatech

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Matthew

J.

Moberg,

CPA

Rupert

H.

Johnson,

Jr.

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

March

31,

2021

Franklin

DynaTech

Fund

7

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

3

/3

1

/2

1

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

+12.71%

5

+6.51%

1-Year

+71.10%

+61.68%

5-Year

+224.44%

+25.12%

10-Year

+425.27%

+17.38%

Advisor

6-Month

+12.85%

+12.85%

1-Year

+71.53%

+71.53%

5-Year

+228.57%

+26.86%

10-Year

+438.66%

+18.34%

See

page

8

for

Performance

Summary

footnotes.

Franklin

DynaTech

Fund

Performance

Summary

8

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Stocks

historically

have

outperformed

other

asset

classes

over

the

long

term,

but

tend

to

fluctuate

more

dramatically

over

the

short

term.

Investments

in

fast-growing

industries,

like

the

technology

and

health

care

sectors

(which

have

historically

been

volatile)

could

result

in

increased

price

fluctuation,

especially

over

the

short

term,

due

to

the

rapid

pace

of

product

change

and

development

and

changes

in

government

regulation

of

companies

emphasizing

scientific

or

technological

advancement

or

regulatory

approval

for

new

drugs

and

medical

instruments.

The

Fund

may

also

invest

in

small-

and

mid-capitalization

companies,

which

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

1/31/22.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

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.

Total

return

information

is

based

on

net

asset

values

calculated

for

shareholder

transactions.

Certain

adjustments

were

made

to

the

net

asset

values

of

the

Fund

at

3/31/21

for

financial

reporting

purposes.

Accordingly,

adjusted

total

returns

have

been

disclosed

in

the

Financial

Highlights

and

differ

from

those

reported

here.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.85%

0.86%

Advisor

0.60%

0.61%

Your

Fund’s

Expenses

Franklin

DynaTech

Fund

9

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration):

Divide

your

account

value

by

$1,000

(if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/20

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,2

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,127.02

$4.14

$1,021.04

$3.94

0.78%

C

$1,000

$1,122.83

$8.09

$1,017.31

$7.69

1.53%

R

$1,000

$1,125.67

$5.46

$1,019.80

$5.19

1.03%

R6

$1,000

$1,128.89

$2.44

$1,022.64

$2.32

0.46%

Advisor

$1,000

$1,128.52

$2.82

$1,022.28

$2.68

0.53%

10

franklintempleton.com

Semiannual

Report

Franklin

Focused

Growth

Fund

This

semiannual

report

for

Franklin

Focused

Growth

Fund

covers

the

period

ended

March

31,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

by

investing

in

an

equity

securities

portfolio

of

approximately

20–50

companies

that

we

believe

offers

a

compelling

trade-off

between

growth

opportunity,

business

and

financial

risk

and

valuation.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+9.99%

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

total

return

of

+12.44%.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry

to

target

leaders

and

emerging

leaders.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

Manager’s

Discussion

During

the

six

months

under

review,

the

information

technology

(IT)

sector

was

a

top

contributor

to

absolute

performance.

Many

IT

companies

reported

strong

earnings

over

the

period,

including

information

software

and

services

company

Microsoft

and

payment

services

provider

PayPal.

Microsoft

also

increased

its

dividend

during

the

period,

which

launched

its

stock

higher.

The

communication

services

sector

was

another

key

area

of

strength

for

the

Fund

with

a

position

in

Singapore-based

consumer

internet

company

Sea

Limited

serving

as

a

catalyst

for

positive

performance.

The

company

generates

revenue

from

its

online

gaming

and

shopping

platforms,

which

have

been

more

widely

adopted

since

the

pandemic.

In

the

consumer

discretionary

sector,

Tesla,

which

designs

and

manufactures

electronic

vehicles

and

MercadoLibre,

an

Argentina-based

online

marketplace,

were

the

Fund’s

top

performers.

Electric

vehicle

production

reached

a

one

million

Portfolio

Composition

3/31/21

%

of

Total

Net

Assets

IT

Services

18.4%

Software

16.6%

Internet

&

Direct

Marketing

Retail

11.8%

Interactive

Media

&

Services

10.1%

Semiconductors

&

Semiconductor

Equipment

9.9%

Health

Care

Equipment

&

Supplies

9.6%

Entertainment

4.6%

Automobiles

3.4%

Electric

Utilities

2.2%

Health

Care

Technology

2.2%

Media

2.1%

Life

Sciences

Tools

&

Services

1.6%

Food

&

Staples

Retailing

1.6%

Capital

Markets

1.2%

Other

3.3%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

Source:

Morningstar.

Frank

Russell

Company

is

the

source

and

owner

of

the

trademarks,

service

marks

and

copyrights

related

to

the

Russell

Indexes.

Russell

®

is

a

trademark

of

Frank

Russell

Company.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

53

.

Franklin

Focused

Growth

Fund

11

franklintempleton.com

Semiannual

Report

milestone

for

Tesla,

and

its

stock

rallied

to

all-time

highs.

Strong

growth

for

MercadoLibre

was

credited

to

e-commerce

revenues

that

reached

historic

highs.

In

contrast,

within

the

IT

sector,

acquisition

news

pressured

the

shares

of

cloud

software

pioneer

salesforce.com,

which

purchased

a

leading

collaboration

software

company

to

improve

its

competitive

position.

In

the

consumer

discretionary

sector,

online

and

mobile

commerce

company

Alibaba

Group

Holding

was

pressured

by

regulatory

initiatives

from

China

to

prevent

monopolistic

power

of

large

internet

platforms.

E-commerce

giant

Amazon.com

was

also

a

slight

drag

on

the

sector

with

a

pullback

of

shares

following

strong

performance

throughout

the

pandemic.

There

were

also

concerns

about

the

impact

of

COVID-19

related

costs

on

company

profits.

In

the

industrials

sector,

data

analytics

provider

Verisk

Analytics

faced

COVID-19

headwinds

in

its

energy

and

financials

businesses,

which

dampened

its

stock.

Longer

term,

we

believe

secular

growth

for

the

company

will

be

driven

by

expanding

usage

of

current

digital

solutions

among

its

existing

client

base,

the

development

of

new

products,

and

expansion

into

adjacent

markets.

Elsewhere,

concerns

about

slowing

revenue

growth

dampened

the

shares

of

Veeva

Systems,

a

provider

of

cloud-based

software

for

the

life

sciences

industry.

We

remain

constructive

on

Veeva

Systems

with

its

sizeable

exposure

to

the

ongoing

cloud

transition

by

commercial

and

research-based

biopharma

and

medical

technology

organizations.

Thank

you

for

your

participation

in

Franklin

Focused

Growth

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Matthew

J.

Moberg,

CPA

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

3/31/21

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Amazon.com,

Inc.

8.8%

Internet

&

Direct

Marketing

Retail,

United

States

Microsoft

Corp.

8.3%

Software,

United

States

Facebook,

Inc.

5.3%

Interactive

Media

&

Services,

United

States

Shopify,

Inc.

4.8%

IT

Services,

Canada

PayPal

Holdings,

Inc.

4.0%

IT

Services,

United

States

ServiceNow

,

Inc.

3.9%

Software,

United

States

NVIDIA

Corp.

3.9%

Semiconductors

&

Semiconductor

Equipment,

United

States

Tesla,

Inc.

3.4%

Automobiles,

United

States

Tencent

Holdings

Ltd.

3.3%

Interactive

Media

&

Services,

China

MercadoLibre

,

Inc.

3.1%

Internet

&

Direct

Marketing

Retail,

Argentina

Performance

Summary

as

of

March

31,

2021

Franklin

Focused

Growth

Fund

12

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

3/31/21

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

+9.99%

+3.94%

1-Year

+66.08%

+56.94%

3-Year

+96.25%

+22.86%

Since

Inception

(4/12/16)

+192.42%

+22.71%

Advisor

6-Month

+10.13%

+10.13%

1-Year

+66.42%

+66.42%

3-Year

+97.79%

+25.53%

Since

Inception

(4/12/16)

+196.15%

+24.45%

See

page

13

for

Performance

Summary

footnotes.

Franklin

Focused

Growth

Fund

Performance

Summary

13

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramati-

cally

if

the

company

fails

to

meet

those

projections.

The

Fund

may

also

invest

in

small-

and

mid-capitalization

companies,

which

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility,

and

political

or

social

instability;

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

The

Fund

has

an

expense

reduction

contractually

guaranteed

through

1/31/22.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Effective

2/14/20,

the

Fund

began

offering

Class

A

shares.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

2/14/20,

a

restated

figure

is

used

based

on

the

Fund’s

Advisor

Class

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A

and

Advisor

Class;

and

(b)

for

periods

after

2/14/20,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(10/1/20–3/31/21)

Share

Class

Shor

t-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0703

$0.1389

$0.2092

C

$0.0703

$0.1389

$0.2092

R

$0.0703

$0.1389

$0.2092

R6

$0.0703

$0.1389

$0.2092

Advisor

$0.0703

$0.1389

$0.2092

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.12%

1.95%

Advisor

0.87%

1.70%

Your

Fund’s

Expenses

Franklin

Focused

Growth

Fund

14

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6)

.

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/20

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,

2

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,

2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,099.88

$5.77

$1,019.44

$5.55

1.10%

C

$1,000

$1,095.48

$9.70

$1,015.68

$9.33

1.86%

R

$1,000

$1,098.23

$7.41

$1,017.87

$7.12

1.42%

R6

$1,000

$1,101.68

$4.27

$1,020.87

$4.10

0.81%

Advisor

$1,000

$1,101.28

$4.46

$1,020.69

$4.29

0.85%

15

franklintempleton.com

Semiannual

Report

Franklin

Growth

Fund

This

semiannual

report

for

Franklin

Growth

Fund

covers

the

period

ended

March

31,

2021.

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

+15.05%

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

+19.07%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

17

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry

to

target

leaders

and

emerging

leaders.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

The

investment

manager’s

process

generally

includes

an

assessment

of

the

potential

impacts

of

any

material

environmental,

social

and

governance

(“ESG”)

factors

on

the

long-term

risk

and

return

profile

of

a

company.

Manager’s

Discussion

During

the

six-months

under

review,

the

information

technology

sector

(IT)

contributed

most

to

the

Fund’s

returns.

Many

IT

companies

enjoyed

strong

earnings

over

the

period,

including

semiconductor

manufacturer

ASML

Holding

and

information

and

services

firm

Microsoft.

ASML

Holding

continues

to

benefit

from

high

demand

for

its

leading-edge

chips

that

power

artificial

intelligence,

5G

and

high-performance

computing.

Microsoft

stocks

launched

higher

after

increasing

its

dividend

during

the

period.

While

there

were

no

industrials

stocks

among

our

top

contributors,

the

sector

itself

delivered

solid

absolute

gains.

In

the

health

care

sector,

precision

instruments

manufacturer

Mettler-Toledo

International

was

a

top

performer.

The

company

has

been

benefiting

from

expansion

into

China

and

growth

of

its

laboratory

and

industrial

businesses.

Solid

returns

in

the

communication

services

sector

were

helped

Portfolio

Composition

3/31/21

%

of

Total

Net

Assets

Software

14.7%

IT

Services

6.7%

Internet

&

Direct

Marketing

Retail

6.0%

Health

Care

Equipment

&

Supplies

5.9%

Semiconductors

&

Semiconductor

Equipment

5.3%

Interactive

Media

&

Services

5.1%

Technology

Hardware,

Storage

&

Peripherals

5.1%

Life

Sciences

Tools

&

Services

4.9%

Road

&

Rail

4.9%

Pharmaceuticals

4.5%

Machinery

4.2%

Aerospace

&

Defense

3.9%

Capital

Markets

3.7%

Electronic

Equipment,

Instruments

&

Components

2.8%

Other

22.0%

Short-Term

Investments

&

Other

Net

Assets

0.3%

1.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

60

.

Franklin

Growth

Fund

16

franklintempleton.com

Semiannual

Report

by

a

position

in

Google

parent

company

Alphabet,

which

has

seen

an

acceleration

in

advertising

revenue

and

growth

of

its

services

and

cloud

businesses.

In

the

consumer

discretionary

sector,

media

conglomerate

and

theme

park

operator

Walt

Disney

Company’s

successful

streaming

platform

helped

mitigate

the

negative

impacts

from

COVID-19

closures

of

its

theme

parks

and

film

business.

In

contrast,

online

and

mobile

commerce

company

Alibaba

Group

Holding

was

pressured

by

regulatory

initiatives

from

China

to

prevent

monopolistic

power

of

large

internet

platforms.

E-commerce

giant

Amazon.com

was

also

a

slight

drag

on

Fund

results

with

a

pullback

of

shares

following

strong

performance

throughout

the

pandemic.

There

were

also

concerns

about

the

impact

of

COVID-19

related

costs

on

company

profits.

The

only

sector

to

produce

a

modest

negative

return

was

real

estate,

where

the

shares

of

data

center

operator

Equinix

showed

some

weakness

(not

held

at

period-end).

Elsewhere,

beverage

company

Brown-Forman

had

a

small

negative

impact

on

returns

in

the

consumer

staples

sector.

Thank

you

for

your

continued

participation

in

Franklin

Growth

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Serena

Perin

Vinton,

CFA

Lead

Portfolio

Manager

Chris

Anderson

Robert

Rendler,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

3/31/21

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Apple,

Inc.

5.0%

Technology

Hardware,

Storage

&

Peripherals,

United

States

Amazon.com,

Inc.

5.0%

Internet

&

Direct

Marketing

Retail,

United

States

Microsoft

Corp.

4.2%

Software,

United

States

Alphabet,

Inc.

3.2%

Interactive

Media

&

Services,

United

States

Mastercard

,

Inc.

2.3%

IT

Services,

United

States

Union

Pacific

Corp.

2.2%

Road

&

Rail,

United

States

ServiceNow

,

Inc.

2.1%

Software,

United

States

Mettler

-Toledo

International,

Inc.

2.0%

Life

Sciences

Tools

&

Services,

United

States

Intuit,

Inc.

1.8%

Software,

United

States

Walt

Disney

Co.

(The)

1.5%

Entertainment,

United

States

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

March

31,

2021

Franklin

Growth

Fund

17

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

3/31/21

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

+15.05%

+8.72%

1-Year

+58.83%

+50.09%

5-Year

+133.31%

+17.13%

10-Year

+287.15%

+13.85%

Advisor

6-Month

+15.20%

+15.20%

1-Year

+59.22%

+59.22%

5-Year

+136.23%

+18.76%

10-Year

+296.93%

+14.78%

See

page

18

for

Performance

Summary

footnotes.

Franklin

Growth

Fund

Performance

Summary

18

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Historically,

the

Fund

has

focused

on

larger

companies.

The

Fund

may

also

invest

in

small,

relatively

new

and/or

unseasoned

companies,

which

involves

additional

risks,

as

the

price

of

these

securities

can

be

volatile,

particularly

over

the

short

term.

The

Fund

may

focus

on

particular

sectors

of

the

market

from

time

to

time,

which

can

carry

greater

risks

of

adverse

developments

in

such

sectors.

In

addition,

the

Fund

may

invest

up

to

40%

of

its

net

assets

in

stocks

of

foreign

companies,

which

involve

special

risks,

including

currency

fluctuations

and

economic

as

well

as

political

uncertainty.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

1/31/22.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

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.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(10/1/20–3/31/21)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1833

$10.6145

$10.7978

C

–

$10.6145

$10.6145

R

–

$10.6145

$10.6145

R6

$0.4731

$10.6145

$11.0876

Advisor

$0.3942

$10.6145

$11.0087

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.82%

0.83%

Advisor

0.57%

0.58%

Your

Fund’s

Expenses

Franklin

Growth

Fund

19

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/20

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,

2

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,

2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,150.49

$4.23

$1,021.00

$3.98

0.79%

C

$1,000

$1,146.24

$8.20

$1,017.29

$7.70

1.53%

R

$1,000

$1,149.11

$5.55

$1,019.77

$5.22

1.04%

R6

$1,000

$1,152.43

$2.49

$1,022.62

$2.34

0.46%

Advisor

$1,000

$1,151.97

$2.90

$1,022.24

$2.72

0.54%

20

franklintempleton.com

Semiannual

Report

Franklin

Income

Fund

This

semiannual

report

for

Franklin

Income

Fund

covers

the

period

ended

March

31,

2021

.

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

+20.38%

for

the

six

months

under

review.

In

comparison,

the

Fund’s

equity

benchmark,

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+19.07%

total

return.

1

The

Fund’s

secondary

benchmark,

the

blended

50%

MSCI

USD

High

Dividend

Yield

Index

+

25%

Bloomberg

Barclays

High

Yield

Very

Liquid

Index

+

25%

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(Blended

Benchmark),

which

is

a

combination

of

leading

stock

and

bond

indexes,

posted

a

+9.83%

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

23

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

In

analyzing

debt

and

equity

securities,

we

consider

such

factors

as

a

company’s

experience

and

managerial

strength;

responsiveness

to

changes

in

interest

rates

and

business

conditions;

debt

maturity

schedules

and

borrowing

requirements;

changing

financial

condition

and

market

recognition

of

the

change;

and

a

security’s

relative

value

based

on

such

factors

as

anticipated

cash

flow,

interest

or

dividend

coverage,

asset

coverage

and

earnings.

When

choosing

investments

for

the

Fund,

we

apply

a

bottom-up,

value

oriented,

long-term

approach,

focusing

on

the

market

price

of

a

company’s

securities

relative

to

the

investment

manager’s

evaluation

of

the

company’s

long-term

earning,

asset

value

and

cash

flow

potential.

Manager’s

Discussion

During

the

period

under

review,

our

equity

weighting

increased

from

64.2%

to

73.7%,

and

our

fixed

income

weighting

decreased

from

33.8%

to

24.8%.

The

Fund’s

cash

position

decreased

from

2.0%

to

1.5%

of

total

net

assets.

The

Fund

generated

positive

returns

during

the

period

with

strong

performance

across

equity

and

fixed

income.

Increased

Fund

exposure

to

the

equity

market

helped

drive

strong

returns,

while

lower

exposure

to

interest-rate

sensitive

fixed

income

securities

led

to

strong

performance

from

the

Fund

relative

to

its

blended

benchmark.

Dividend

stocks,

particularly

value-oriented

sectors,

outperformed

during

the

period

and

the

equity

component

of

the

Fund’s

blended

benchmark

increased

with

the

MSCI

USA

High

Dividend

Yield

Index

posting

positive

returns

for

the

6-month

period.

The

Fund’s

equity

positions

also

generated

positive

returns

during

the

period.

Corporate

credit

spreads

continued

to

narrow

during

the

period

as

economic

reopening’s

and

the

lingering

positive

effects

of

the

record

fiscal

and

monetary

accommodation

continued

to

support

markets.

Offsetting

narrowing

credit

spreads

were

rising

interest-rates,

which

weighed

on

the

more

duration

sensitive

portions

of

the

Fund’s

benchmark.

Fixed

income

returns

for

the

Fund

outperformed

the

Fund’s

blended

benchmark

during

the

period.

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

posted

negative

returns,

while

Bloomberg

Barclays

U.S.

High

Yield

Very

Liquid

Index

posted

positive

returns

at

period-end.

The

Fund

entered

the

period

with

an

increased

equity

weighting

and

a

decreased

fixed

income

weighting,

while

also

holding

a

portion

in

cash

equivalents,

as

a

result

of

making

a

meaningful

shift

in

asset-mix

earlier

in

(FY)

2020.

This

shift

continued

over

the

six-month

period,

which

continued

to

maintain

the

increased

equity

weighting

and

decreased

fixed

income

weighting,

while

continuing

to

hold

a

portion

in

cash

equivalents

by

period-end.

1.

Source:

Morningstar.

2.

Source:

Factset.

The

Fund’s

Blended

Benchmark

was

calculated

internally.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

72

.

Franklin

Income

Fund

21

franklintempleton.com

Semiannual

Report

Fixed

Income

holdings

posted

positive

returns

during

the

period

with

considerable

outperformance

relative

to

the

Fund’s

blended

fixed

income

benchmark.

The

Fund’s

duration

positioning

at

the

front

end

of

the

yield

curve

in

the

face

of

rising

interest-rates

was

a

key

source

in

driving

the

outperformance,

while

U.S.

10

Year

Treasury

yields

increased

during

the

six-month

period.

*Includes

senior

floating

rate

interests

and

index-linked

notes.

Every

corporate

credit

sector

generated

positive

absolute

returns

during

the

period

under

review,

with

health

care

and

energy

leading

the

way

in

terms

of

performance

contribution

relative

to

the

Fund’s

blended

benchmark.

Our

holdings

in

U.S.

Treasuries

and

Agency

MBS

were

minor

absolute

detractors

during

the

period.

However,

these

positions

were

shorter

in

duration

and

much

smaller

in

size

relative

to

the

benchmark,

which

resulted

in

these

sectors

being

positive

contributors

relative

to

the

Fund’s

blended

benchmark.

Corporate

credit

spreads

continued

to

narrow

during

the

period

under

review,

which

benefited

high-yield

exposures

in

particular.

High-yield

corporate

bonds

are

generally

lower

in

duration

than

investment-grade

corporate

bonds.

Narrowing

credit

spreads

and

a

greater

than

100

basis

points

increase

in

U.S.

Treasury

yields

favored

high-yield

performance

within

the

fixed

income

asset

class.

Within

health

care,

the

largest

contributor

to

performance

was

high-yield

rated

hospital

company

CHS/Community

Health

Systems.

The

company

moved

past

COVID-19

induced

disruptions

and

was

able

to

access

both

the

debt

and

equity

markets

during

the

period

to

reduce

interest

expense

and

improve

the

health

of

their

balance

sheet,

which

led

to

a

very

strong

performance.

The

company

represented

the

largest

position

in

the

Fund

during

the

period

and

its

strong

performance

generated

half

of

the

total

fixed

income

returns

over

the

period.

In

health

care

outside

of

CHS/Community

Health

Systems,

high-yield

hospital

peer

Tenet

Healthcare

and

pharmaceutical

companies

Endo

and

Bausch

Health

also

benefited

Fund

returns

during

the

period.

The

other

large

sector

contributor

to

fixed

income

performance

during

the

period

came

from

debt

securities

in

the

energy

sector.

Strong

commodity

price

performance,

increased

demand

outlooks

as

the

market

looked

past

the

COVID-19

enforced

lockdowns

as

well

as

company

specific

drivers

led

to

strong

performance

in

Chesapeake

Energy,

Weatherford

International,

HighPoint

Operating

Corporation

and

Calumet

Specialty

Products.

No

other

corporate

sectors

stood

out

in

terms

of

outsized

performance

contributions.

However,

other

strong

individual

contributors

came

from

the

consumer

discretionary

sector

in

holdings

of

automotive

peers

Ford

Motor

and

General

Motors

as

well

as

casino

operator

Wynn

Las

Vegas.

U.S.

Treasury

and

Agency

MBS

holdings

were

small

absolute

detractors

during

the

period

as

noted

previously.

However,

the

reduced

size

and

shorter

duration

of

our

U.S.

Treasury

holdings

relative

to

the

Fund’s

blended

benchmark

led

to

the

strongest

relative

performance

in

fixed

income

after

Health

Care

and

Energy.

Portfolio

Composition

3/31/21

%

of

Total

Net

Assets

Pharmaceuticals

9.5%

Health

Care

Providers

&

Services

9.1%

Banks

8.6%

Oil,

Gas

&

Consumable

Fuels

8.3%

Electric

Utilities

7.5%

Semiconductors

&

Semiconductor

Equipment

4.6%

Multi-Utilities

3.8%

Diversified

Telecommunication

Services

3.5%

Media

2.8%

Aerospace

&

Defense

2.7%

Insurance

2.6%

Beverages

2.5%

Energy

Equipment

&

Services

2.5%

Software

2.0%

Other

28.5%

Short-Term

Investments

&

Other

Net

Assets

1.5%

Top

Five

Fixed

Income

Holdings

*

3/31/21

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

CHS/Community

Health

Systems

Inc

5.0%

Health

Care

Providers

&

Services

,

United

States

Tenet

Healthcare

Corp

1.4%

Health

Care

Providers

&

Services

,

United

States

DISH

DBS

Corp

1.3%

Media

,

United

States

Sprint

Communications

Inc

0.8%

Wireless

Telecommunication

Services

,

United

States

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp

0.8%

Oil,

Gas

&

Consumable

Fuels

,

United

States

Franklin

Income

Fund

22

franklintempleton.com

Semiannual

Report

*Includes

convertible

bonds.

Equity

holdings

increased

over

the

period.

As

an

asset

class,

equities

outperformed

fixed

income

during

the

period.

We

used

considerable

weakness

earlier

in

(FY)

2020

to

shift

assets

out

of

fixed

income

and

into

the

equity

market.

Dividend

paying

companies

continued

to

lag

through

the

beginning

of

the

period

under

review,

which

provided

an

attractive

opportunity

for

us

to

continue

to

add

to

positions

across

the

equity

markets

including

to

common

stocks,

convertible

securities,

and

equity

linked

notes.

All

sectors

were

positive

absolute

contributors

to

Fund

performance

during

the

period.

Financials

and

energy

holdings

were

the

largest

positive

contributors

relative

to

the

Fund’s

benchmark

during

the

period.

Consumer

discretionary,

materials

and

utilities

holdings

provided

notable

positive

contributions

as

well.

All

the

Fund’s

equity

positions

in

the

financials

sector

were

positive

contributors

during

the

period

amidst

rising

interest-

rates.

Holdings

of

JPMorgan

Chase,

MetLife

and

Bank

of

America

led

returns.

Other

notable

contributors

included

Morgan

Stanley,

Truist

Financial

and

Citigroup.

Energy

peers

Chevron

and

Exxon

Mobile

were

notable

positive

contributors

during

the

period

as

a

much

better

macro

supply

and

demand

forecast

for

the

industry

led

to

strong

performance

from

depressed

valuations.

Top

performers

in

the

Fund

outside

of

financials

and

energy

were

General

Motors,

Raytheon

Technology,

CVS

Health

and

Southern

Company.

General

Motors

saw

strong

performance

from

favorable

vehicle

sales

trends

coming

out

of

the

pandemic

as

well

as

a

favorable

reaction

to

the

company’s

commitments

in

the

electronic

vehicle

space

going

forward.

Despite

positive

absolute

contributions,

equity

holdings

in

the

consumer

staples,

health

care

and

information

technology

sectors

were

modest

detractors

in

the

period

relative

to

the

Fund’s

benchmark.

In

health

care,

pharmaceutical

companies

AstraZeneca

(not

held

at

period-end)

and

Merck

&

Company

were

small

detractors

during

the

period.

Unilever

in

the

consumer

staples

space

as

well

as

Dominion

Energy

in

the

utilities

sector

were

minor

negative

contributors

as

well.

During

the

period,

the

Fund

used

derivatives

such

as

equity

call

and

put

options

to

sell

and

reduce

positions

and/or

to

initiate

and

add

to

positions,

which

generated

gains

during

the

period

under

review.

Thank

you

for

your

continued

participation

in

Franklin

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Edward

D.

Perks,

CFA

Lead

Portfolio

Manager

Brendan

Circle,

CFA

Todd

Brighton,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

Five

Equity

Holdings

*

3/31/21

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Chevron

Corp.

2.2%

Oil,

Gas

&

Consumable

Fuels

,

United

States

Southern

Co.

(The)

2.1%

Electric

Utilities

,

United

States

Exxon

Mobil

Corp.

2.0%

Oil,

Gas

&

Consumable

Fuels

,

United

States

Procter

&

Gamble

Co.

(The)

1.9%

Household

Products

,

United

States

Dominion

Energy,

Inc.

1.8%

Multi-Utilities

,

United

States

Performance

Summary

as

of

March

31,

2021

Franklin

Income

Fund

23

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

3/31/21

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

+20.38%

+15.87%

1-Year

+32.87%

+27.89%

5-Year

+50.39%

+7.68%

10-Year

+86.52%

+6.03%

Advisor

6-Month

+20.13%

+20.13%

1-Year

+33.51%

+33.51%

5-Year

+51.48%

+8.66%

10-Year

+90.56%

+6.66%

30-Day

Standardized

Yield

7

Share

Class

Distribution

Rate

6

(with

fee

waiver)

(without

fee

waiver)

A

4.30%

2.31%

2.31%

Advisor

4.71%

2.66%

2.66%

See

page

25

for

Performance

Summary

footnotes.

Franklin

Income

Fund

Performance

Summary

24

franklintempleton.com

Semiannual

Report

Net

Asset

Value

Share

Class

(Symbol)

3/31/21

9/30/20

Change

A

(FKIQX)

$2.44

$2.08

+$0.36

A1

(FKINX)

$2.44

$2.08

+$0.36

C

(FCISX)

$2.48

$2.12

+$0.36

R

(FISRX)

$2.39

$2.04

+$0.35

R6

(FNCFX)

$2.43

$2.07

+$0.36

Advisor

(FRIAX)

$2.42

$2.07

+$0.35

Distributions

(10/1/20–3/31/21)

Share

Class

Net

Investment

Income

A

$0.0574

A1

$0.0586

C

$0.0530

R

$0.0548

R6

$0.0604

Advisor

$0.0598

Total

Annual

Operating

Expenses

8

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.71%

0.72%

Advisor

0.46%

0.47%

Franklin

Income

Fund

Performance

Summary

25

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

portfolio

includes

a

substantial

portion

of

higher-yielding,

lower-rated

corporate

bonds

and

some

floating

rate

loans,

which

are

also

higher-yielding

and

lower-rated.

These

investments

have

more

credit

risk

than

investment-grade

securities

and

are

subject

to

increased

risk

of

default

and

potential

loss

of

principal.

The

Fund’s

share

price

and

yield

will

be

affected

by

interest

rate

movements.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

Stock

prices

fluctuate,

sometimes

rapidly

and

dra-

matically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Foreign

investing

involves

additional

risks

such

as

currency

and

market

volatility,

as

well

as

political

and

social

instability.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

1/31/22.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

5.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

6.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

March

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

3/31/21.

7.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Your

Fund’s

Expenses

FRANKLIN

INCOME

FUND

26

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/20

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,

2

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,

2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,203.84

$3.99

$1,021.31

$3.66

0.73%

A1

$1,000

$1,204.48

$3.44

$1,021.81

$3.16

0.63%

C

$1,000

$1,197.64

$6.17

$1,019.31

$5.67

1.13%

R

$1,000

$1,201.44

$5.34

$1,020.08

$4.90

0.98%

R6

$1,000

$1,206.48

$2.22

$1,022.92

$2.04

0.41%

Advisor

$1,000

$1,201.31

$2.62

$1,022.56

$2.40

0.48%

27

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,

2021.

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

-0.56%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Bloomberg

Barclays

U.S.

Government

-

Intermediate

Index,

the

intermediate

component

of

the

Bloomberg

Barclays

U.S.

Government

Index,

posted

a

-1.94%

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

29

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

currently

invest

the

Fund’s

assets

substantially

in

GNMA

obligations.

We

analyze

securities

using

proprietary

models

to

help

us

identify

attractive

investment

opportunities.

Manager’s

Discussion

As

investors

coped

with

potential

inflation

concerns

related

to

monetary

and

fiscal

stimulus

as

well

as

improving

economic

growth

expectations,

U.S.

Treasury

yields

surged

during

the

six-month

period.

The

10-year

Treasury

yield

rose105

basis

points

and

volatility,

as

measured

by

the

Merrill

Lynch

Option

Volatility

Estimate

(MOVE)

Index,

also

increased

during

the

period.

Fundamentally,

the

U.S.

housing

market

remained

strong

and

housing

activity

firm.

The

selloff

in

rates

led

to

higher

mortgage

rates,

which

increased

slightly

from

a

historical

low

reached

in

January

2021.

From

a

historical

perspective,

mortgage

rates

are

still

very

low,

and

should

not

materially

impact

affordability.

Overall

prepayment

activity

remained

elevated

relative

to

past

prepayments

waves

despite

higher

rates

and

wider

primary

and

secondary

market

spreads.

After

the

selloff

in

rates,

only

approximately

half

of

the

agency

MBS

universe

has

an

incentive

to

refinance.

Refinance

applications,

however,

have

remained

stubbornly

high

and

we

believe

prepayments

should

remain

elevated

over

the

next

3

months.

As

we

progress

through

the

year

and

economic

activity

continues

to

pick-up,

we

expect

prepayments

to

slow.

Additionally,

forbearance

requests

have

been

declining,

which

could

lead

to

lower

involuntary

prepayments

in

the

coming

months.

Through

the

end

of

March

2021,

the

U.S.

Federal

Reserve

(Fed)

purchased

a

significantly

large

amount

of

agency

MBS.

Their

sizable

purchases

of

agency

MBS

should

continue

to

support

the

market,

potentially

limiting

spread

widening

and

keeping

spreads

range

bound,

which

could

benefit

lower

coupons.

Portfolio

Composition

3/31/21

%

of

Total

Net

Assets

Mortgage-Backed

Securities

95.0%

Other

0.4%

Short-Term

Investments

&

Other

Net

Assets

4.6%

1.

Securities

owned

by

the

Fund,

but

not

shares

of

the

Fund,

are

guaranteed

by

the

U.S.

government,

its

agencies

or

instrumentalities

as

to

the

timely

payment

of

principal

and

interest.

The

Fund’s

yield

and

share

price

are

not

guaranteed

and

will

vary

with

market

conditions.

2.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

92

.

Franklin

U.S.

Government

Securities

Fund

28

franklintempleton.com

Semiannual

Report

The

Fund

maintains

a

conservative,

disciplined

investment

strategy

and

invests

primarily

in

GNMA

mortgage

pass-

throughs,

which

remain

the

only

MBS

that

are

backed

by

the

full

faith

and

credit

of

the

U.S.

government—the

same

guarantee

applicable

to

U.S.

Treasuries.

1

We

believe

our

collateral-intensive

research

approach

can

allow

us

to

uncover

dislocations

across

the

GNMA

markets

and

associated

mispricing

of

prepayment

risk.

We

continue

to

focus

on

specified

pools

where

we

believe

our

experience

and

continual

investment

in

new

technologies

help

us

uncover

these

discrepancies.

Agency

mortgage-backed

securities

(MBS)

posted

negative

total

returns

during

the

period

but

outperformed

similar

duration

U.S.

Treasury

yields.

Within

the

agency

mortgage

pass-through

sector,

Fannie

Mae

(FNMA)

MBS

and

Freddie

Mac

(FHLMC)

MBS

were

the

best

performers,

while

GNMA

MBS

lagged.

Within

the

GNMA

sector,

GNMA

I

3.0%,

5.0%

and

4.5%

coupons

were

the

best

performers,

while

GNMA

II

2.5%,

3.0%

and

3.5%

coupons

lagged.

During

the

period,

the

portfolio

retained

a

higher

weighting

to

GNMA

IIs

(pools

of

mortgages

from

multiple

issuers)

than

GNMA

Is

(pools

of

mortgages

from

single

issuers).

Over

the

period,

we

added

to

GNMA

II

2.0%

and

2.5%

coupons,

while

reducing

exposure

to

GNMA

II

3.5%,

3.0%

and

4.5%

coupons.

The

portfolio’s

largest

absolute

allocations

were

in

3.0%

and

3.5%

coupons

at

period-end

and

relative

to

the

index

the

portfolio

was

underweight

the

2.0%,

3.5%

and

4.0%

coupons

and

overweight

the

3.0%

coupon

and

4.5%

through

6.0%

coupons.

The

Fund’s

underweight

allocation

to

GNMA

II

2.0%

and

3.5%

coupons

and

overweight

allocation

to

GNMA

I

5.0%

benefited

performance.

Security

selection

in

GNMA

II

2.5%

and

3.0%

coupons

provided

a

significant

contribution

to

performance,

with

additional

positive

performance

from

security

selection

in

GNMA

I

4.0%,

5.5%

and

6.0%

coupons

and

GNMA

II

4.0%

and

5.0%

through

6.0%

coupons.

Underweight

allocation

to

GNMA

II

4.0%

and

overweight

allocation

to

GNMA

I

3.0%,

5.5%

and

6.0%

and

GNMA

II

6.0%

detracted

from

performance.

Thank

you

for

your

continued

participation

in

Franklin

U.S.

Government

Securities

Fund.

We

welcome

your

comments

and

questions

and

look

forward

to

serving

your

investment

needs

in

the

years

ahead.

Paul

Varunok

Neil

Dhruv

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

March

31,

2021

Franklin

U.S.

Government

Securities

Fund

29

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

/3

1

/2

1

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

-0.56%

-4.29%

1-Year

-0.28%

-4.02%

5-Year

+8.52%

+0.88%

10-Year

+22.65%

+1.67%

Advisor

6-Month

-0.44%

-0.44%

1-Year

-0.20%

-0.20%

5-Year

+9.52%

+1.83%

10-Year

+24.69%

+2.23%

30-Day

Standardized

Yield

7

Share

Class

Distribution

Rate

6

(with

fee

waiver)

(without

fee

waiver)

A

2.30%

1.91%

1.91%

Advisor

2.66%

2.24%

2.24%

See

page

30

for

Performance

Summary

footnotes.

Franklin

U.S.

Government

Securities

Fund

Performance

Summary

30

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

loss

of

principal.

The

Fund’s

share

price

and

yield

will

be

affected

by

interest

rate

movements

and

mortgage

prepay-

ments.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

1/31/22.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

5.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

6.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

March

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

3/31/21.

7.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(10/1/20–3/31/21)

Share

Class

Net

Investment

Income

A

$0.0660

A1

$0.0690

C

$0.0538

R

$0.0581

R6

$0.0766

Advisor

$0.0736

Total

Annual

Operating

Expenses

8

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.89%

0.90%

Advisor

0.64%

0.65%

Your

Fund’s

Expenses

Franklin

U.S.

Government

Securities

Fund

31

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration):

Divide

your

account

value

by

$1,000

(if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/20

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,2

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$994.35

$4.31

$1,020.61

$4.37

0.87%

A1

$1,000

$994.84

$3.79

$1,021.14

$3.84

0.77%

C

$1,000

$992.28

$6.30

$1,018.61

$6.38

1.27%

R

$1,000

$993.06

$5.49

$1,019.42

$5.57

1.11%

R6

$1,000

$994.46

$2.58

$1,022.34

$2.62

0.52%

Advisor

$1,000

$995.61

$3.08

$1,021.85

$3.12

0.62%

32

franklintempleton.com

Semiannual

Report

Franklin

Utilities

Fund

This

semiannual

report

for

Franklin

Utilities

Fund

covers

the

period

ended

March

31,

2021.

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

+11.02%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

S&P

500

Utilities

Index,

which

measures

the

performance

of

all

utilities

stocks

in

the

S&P

500,

posted

a

+9.52%

total

return

and

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+19.07%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

34

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

We

search

for

the

best

return

opportunities

available

in

the

global

utilities

arena

with

a

specific

focus

on

the

U.S.

electricity

and

gas

sector.

Generally,

we

seek

to

invest

in

companies

producing

a

high

percentage

of

earnings

from

their

regulated

operations.

Manager’s

Discussion

During

the

six

months

under

review,

within

the

utilities

sector,

electric

utilities,

multi-utilities.

and

oil,

gas

and

consumable

fuels

drove

performance.

No

industries

detracted

on

an

absolute

basis.

Among

the

individual

contributors,

renewable

power

producer

NextEra

Energy,

contributed

to

absolute

performance

as

the

company's

fundamentals

have

remained

robust.

We

believe

that

the

company

is

well-positioned

for

strong

long-term

growth

regardless

of

the

regulatory

environment.

NextEra

has

a

significant

backlog

of

renewable

power

projects

that

can

be

developed

cost-effectively,

in

our

view.

Shares

of

Exelon,

a

purchaser,

transmitter,

and

distributor

of

electricity,

also

rose

during

the

six-month

period.

The

company

announced

that

it

was

separating

its

generation

and

retail

business,

which

includes

the

company’s

nuclear

power

plants,

from

its

utility

business.

Recent

earnings

results

have

been

relatively

positive,

but

the

company

did

caution

that

the

February

2021

winter

storm

in

Texas

would

have

an

impact

on

its

full

year

2021

earnings.

Elsewhere,

Southern

Company,

a

Georgia-based

electric

utilities

company,

contributed

to

absolute

returns,

given

the

stock’s

strong

performance

during

the

period.

Southern

Company’s

most

recent

earnings

report

showed

that

sales

remained

resilient,

and

the

company

was

able

to

increase

its

financial

guidance

for

the

fiscal

year

2021.

Portfolio

Composition

3/31/21

%

of

Total

Net

Assets

Electric

Utilities

58.3%

Multi-Utilities

33.0%

Gas

Utilities

2.7%

Oil,

Gas

&

Consumable

Fuels

2.1%

Water

Utilities

1.9%

Other

1.7%

Short-Term

Investments

&

Other

Net

Assets

0.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

101

.

Franklin

Utilities

Fund

33

franklintempleton.com

Semiannual

Report

Conversely,

Dominion

Energy,

a

Virginia-based

power

company,

hindered

the

Fund’s

performance

as

the

stock

lagged

during

the

period.

Results

at

the

company

have

been

resilient

during

the

pandemic,

and

Dominion

continues

to

invest

in

more

sustainable

power

generation.

Vistra,

a

Texas-based

power

company,

was

a

slight

detractor

as

the

shares

were

volatile

late

in

the

reporting

period

due

to

its

exposure

to

the

Texas

winter

storms

in

February

2021.

The

company

disclosed

that

it

would

see

a

significant

impact

to

its

earnings

this

year

and

that

cost

savings

would

not

be

able

offset

the

steep

hit

and

could

result

in

greater

uncertainty

around

the

company’s

buyback

program

in

the

near

term.

Fundamentals

for

Vistra’s

business

longer-term

look

brighter,

in

our

view.

Thank

you

for

your

continued

participation

in

Franklin

Utilities

Fund.

We

look

forward

to

serving

your

future

investment

needs.

John

C.

Kohli,

CFA

J.

Blair

Schmicker,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

3/31/21

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

NextEra

Energy,

Inc.

11.8%

Electric

Utilities,

United

States

CMS

Energy

Corp.

4.9%

Multi-Utilities,

United

States

Dominion

Energy,

Inc.

4.9%

Multi-Utilities,

United

States

Duke

Energy

Corp.

4.5%

Electric

Utilities,

United

States

Exelon

Corp.

4.4%

Electric

Utilities,

United

States

Southern

Co.

(The)

4.2%

Electric

Utilities,

United

States

American

Electric

Power

Co.,

Inc.

4.1%

Electric

Utilities,

United

States

Sempra

Energy

4.0%

Multi-Utilities,

United

States

Edison

International

3.9%

Electric

Utilities,

United

States

DTE

Energy

Co.

3.7%

Multi-Utilities,

United

States

Performance

Summary

as

of

March

31,

2021

Franklin

Utilities

Fund

34

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

3/31/21

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3,4

6-Month

+11.02%

+6.86%

1-Year

+18.74%

+14.29%

5-Year

+49.22%

+7.51%

10-Year

+174.44%

+10.20%

Advisor

6-Month

+11.17%

+11.17%

1-Year

+19.03%

+19.03%

5-Year

+50.78%

+8.56%

10-Year

+179.34%

+10.82%

Share

Class

Distribution

Rate

5

30-Day

Standardized

Yield

6

A

2.19%

2.34%

Advisor

2.50%

2.67%

See

page

35

for

Performance

Summary

footnotes.

Franklin

Utilities

Fund

Performance

Summary

35

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

loss

of

principal.

Investing

in

a

Fund

concentrating

in

the

utilities

sector

involves

special

risks,

including

increased

susceptibility

to

adverse

economic

and

regulatory

developments

affecting

the

sector.

Stocks

historically

have

outperformed

other

asset

classes

over

the

long

term,

but

tend

to

fluctuate

more

dramatically

over

the

short

term.

Securities

issued

by

utility

companies

have

been

historically

sensitive

to

interest

rate

changes.

When

interest

rates

fall,

utility

securities

prices,

and

thus

a

utilities

Fund’s

share

price,

tend

to

rise;

when

interest

rates

rise,

their

prices

generally

fall.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

current

quarterly

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

3/31/21.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Net

Asset

Value

Share

Class

(Symbol)

3/31/21

9/30/20

Change

A

(FKUQX)

$20.19

$19.76

+$0.43

A1

(FKUTX)

$20.19

$19.77

+$0.42

C

(FRUSX)

$20.07

$19.65

+$0.42

R

(FRURX)

$20.10

$19.68

+$0.42

R6

(FUFRX)

$20.38

$19.93

+$0.45

Advisor

(FRUAX)

$20.38

$19.93

+$0.45

Distributions

(10/1/20–3/31/21)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.2873

$1.4065

$1.6938

A1

$0.2974

$1.4065

$1.7039

C

$0.2476

$1.4065

$1.6541

R

$0.2625

$1.4065

$1.6690

R6

$0.3199

$1.4065

$1.7264

Advisor

$0.3124

$1.4065

$1.7189

Total

Annual

Operating

Expenses

7

Share

Class

A

0.83%

Advisor

0.58%

Your

Fund’s

Expenses

Franklin

Utilities

Fund

36

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/20

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,

2

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,

2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,110.24

$4.33

$1,020.83

$4.15

0.82%

A1

$1,000

$1,110.20

$3.81

$1,021.32

$3.65

0.72%

C

$1,000

$1,108.06

$6.43

$1,018.83

$6.16

1.22%

R

$1,000

$1,108.72

$5.62

$1,019.61

$5.38

1.07%

R6

$1,000

$1,112.08

$2.63

$1,022.45

$2.51

0.50%

Advisor

$1,000

$1,111.67

$3.02

$1,022.07

$2.89

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

37

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$121.24

$82.84

$81.16

$63.10

$52.05

$46.04

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.37)

(0.38)

(0.20)

(0.23)

(0.18)

(0.14)

Net

realized

and

unrealized

gains

(losses)

15.77

39.44

3.79

19.45

12.92

7.35

Total

from

investment

operations

........

15.40

39.06

3.59

19.22

12.74

7.21

Less

distributions

from:

Net

realized

gains

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

—

(0.66)

(1.91)

(1.16)

(1.69)

(1.20)

Net

asset

value,

end

of

period

..........

$136.64

$121.24

$82.84

$81.16

$63.10

$52.05

Total

return

c

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

12.70%

47.47%

4.77%

30.88%

25.67%

15.73%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.78%

0.85%

0.86%

0.86%

0.92%

0.91%

Expenses

net

of

waiver

and

payments

by

affiliates

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

0.78%

e,f

0.84%

e

0.85%

e

0.86%

e,f

0.91%

e

0.90%

Net

investment

(loss)

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

(0.54)%

(0.39)%

(0.26)%

(0.32)%

(0.33)%

(0.30)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$10,105,878

$8,378,574

$4,504,434

$3,741,562

$2,498,393

$2,123,082

Portfolio

turnover

rate

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

9.14%

13.82%

20.01%

17.22%

19.85%

22.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$99.49

$68.60

$68.07

$53.49

$44.71

$40.00

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.72)

(0.91)

(0.66)

(0.65)

(0.50)

(0.43)

Net

realized

and

unrealized

gains

(losses)

12.94

32.46

3.10

16.39

10.97

6.34

Total

from

investment

operations

........

12.22

31.55

2.44

15.74

10.47

5.91

Less

distributions

from:

Net

realized

gains

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

—

(0.66)

(1.91)

(1.16)

(1.69)

(1.20)

Net

asset

value,

end

of

period

..........

$111.71

$99.49

$68.60

$68.07

$53.49

$44.71

Total

return

c

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

12.28%

46.37%

3.97%

29.93%

24.72%

14.86%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.53%

1.60%

1.61%

1.61%

1.67%

1.66%

Expenses

net

of

waiver

and

payments

by

affiliates

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

1.53%

e,f

1.59%

e

1.60%

e

1.61%

e,f

1.66%

e

1.65%

Net

investment

(loss)

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

(1.29)%

(1.14)%

(1.01)%

(1.07)%

(1.08)%

(1.05)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,260,434

$1,095,702

$597,927

$611,221

$374,502

$318,896

Portfolio

turnover

rate

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

9.14%

13.82%

20.01%

17.22%

19.85%

22.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

39

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$117.13

$80.26

$78.88

$61.51

$50.90

$45.16

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.52)

(0.60)

(0.39)

(0.40)

(0.31)

(0.26)

Net

realized

and

unrealized

gains

(losses)

15.24

38.13

3.68

18.93

12.61

7.20

Total

from

investment

operations

........

14.72

37.53

3.29

18.53

12.30

6.94

Less

distributions

from:

Net

realized

gains

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

—

(0.66)

(1.91)

(1.16)

(1.69)

(1.20)

Net

asset

value,

end

of

period

..........

$131.85

$117.13

$80.26

$78.88

$61.51

$50.90

Total

return

c

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

12.57%

47.09%

4.52%

30.57%

25.36%

15.43%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.03%

1.10%

1.11%

1.11%

1.17%

1.16%

Expenses

net

of

waiver

and

payments

by

affiliates

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

1.03%

e,f

1.09%

e

1.10%

e

1.11%

e,f

1.16%

e

1.15%

Net

investment

(loss)

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

(0.79)%

(0.63)%

(0.51)%

(0.57)%

(0.58)%

(0.55)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$262,458

$221,041

$123,721

$95,925

$47,860

$38,862

Portfolio

turnover

rate

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

9.14%

13.82%

20.01%

17.22%

19.85%

22.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

ue

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$127.01

$86.46

$84.31

$65.28

$53.56

$47.15

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.15)

(0.05)

0.07

0.04

0.06

0.06

Net

realized

and

unrealized

gains

(losses)

16.52

41.26

3.99

20.15

13.35

7.55

Total

from

investment

operations

........

16.37

41.21

4.06

20.19

13.41

7.61

Less

distributions

from:

Net

realized

gains

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

—

(0.66)

(1.91)

(1.16)

(1.69)

(1.20)

Net

asset

value,

end

of

period

..........

$143.38

$127.01

$86.46

$84.31

$65.28

$53.56

Total

return

c

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

12.89%

47.97%

5.15%

31.38%

26.17%

16.21%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.46%

0.50%

0.51%

0.50%

0.49%

0.49%

Expenses

net

of

waiver

and

payments

by

affiliates

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

0.46%

e,f

0.50%

e,f

0.50%

e

0.50%

e,f

0.48%

e

0.48%

Net

investment

income

(loss)

..........

(0.21)%

(0.05)%

0.09%

0.04%

0.10%

0.12%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$7,849,067

$5,817,028

$2,473,942

$1,688,595

$457,846

$359,505

Portfolio

turnover

rate

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

9.14%

13.82%

20.01%

17.22%

19.85%

22.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

41

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$125.58

$85.58

$83.56

$64.78

$53.25

$46.96

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.20)

(0.15)

(0.01)

(0.06)

(0.04)

(0.03)

Net

realized

and

unrealized

gains

(losses)

16.34

40.81

3.94

20.00

13.26

7.52

Total

from

investment

operations

........

16.14

40.66

3.93

19.94

13.22

7.49

Less

distributions

from:

Net

realized

gains

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

—

(0.66)

(1.91)

(1.16)

(1.69)

(1.20)

Net

asset

value,

end

of

period

..........

$141.72

$125.58

$85.58

$83.56

$64.78

$53.25

Total

return

c

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

12.85%

47.83%

5.04%

31.21%

25.98%

16.02%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.53%

0.60%

0.61%

0.61%

0.67%

0.66%

Expenses

net

of

waiver

and

payments

by

affiliates

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

0.53%

e,f

0.59%

e

0.60%

e

0.61%

e,f

0.66%

e

0.65%

Net

investment

(loss)

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

(0.29)%

(0.15)%

(0.01)%

(0.07)%

(0.08)%

(0.05)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,646,636

$2,884,489

$1,154,604

$680,066

$712,762

$203,443

Portfolio

turnover

rate

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

9.14%

13.82%

20.01%

17.22%

19.85%

22.42%

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

Statement

of

Investments

(unaudited),

March

31,

2021

Franklin

DynaTech

Fund

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

97.9%

Aerospace

&

Defense

0.3%

a

Axon

Enterprise,

Inc.

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

United

States

400,000

$

56,968,000

a

TransDigm

Group,

Inc.

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

United

States

35,000

20,577,200

77,545,200

Automobiles

1.8%

a

Tesla,

Inc.

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

United

States

625,000

417,456,250

Banks

0.1%

Signature

Bank

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

United

States

25,000

5,652,500

a

SVB

Financial

Group

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

United

States

25,000

12,341,500

17,994,000

Biotechnology

1.7%

a,b

Applied

Molecular

Transport,

Inc.

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

United

States

622,200

27,383,022

a

Argenx

SE

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

Netherlands

300,000

82,485,101

a

CRISPR

Therapeutics

AG

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

Switzerland

500,000

60,925,000

a

Exact

Sciences

Corp.

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

United

States

60,000

7,906,800

a,b

Invitae

Corp.

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

United

States

1,000,000

38,210,000

a

Iovance

Biotherapeutics,

Inc.

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

United

States

2,000,000

63,320,000

a

Moderna,

Inc.

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

United

States

25,000

3,273,750

a

Natera,

Inc.

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

United

States

1,000,000

101,540,000

a

Olink

Holding

AB,

ADR

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

Sweden

68,100

2,451,600

387,495,273

Capital

Markets

2.0%

MarketAxess

Holdings,

Inc.

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

United

States

20,000

9,958,400

Moody's

Corp.

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

United

States

250,000

74,652,500

MSCI,

Inc.

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

United

States

500,000

209,640,000

Tradeweb

Markets,

Inc.,

A

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

United

States

2,200,000

162,800,000

457,050,900

Diversified

Consumer

Services

0.4%

a

Chegg,

Inc.

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

United

States

1,100,000

94,226,000

Diversified

Financial

Services

0.0%

†

a

Appier

Group,

Inc.

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

Japan

665,700

9,679,630

Electric

Utilities

0.7%

NextEra

Energy,

Inc.

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

United

States

2,050,000

155,000,500

Electronic

Equipment,

Instruments

&

Components

0.9%

Amphenol

Corp.,

A

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

United

States

1,200,000

79,164,000

Keyence

Corp.

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

Japan

200,000

91,151,248

a

Keysight

Technologies,

Inc.

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

United

States

200,000

28,680,000

a

Zebra

Technologies

Corp.,

A

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

United

States

40,000

19,407,200

218,402,448

Entertainment

4.2%

Activision

Blizzard,

Inc.

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

United

States

550,000

51,150,000

a

Bilibili,

Inc.,

ADR

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

China

200,000

21,412,000

a

Netflix,

Inc.

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

United

States

180,000

93,898,800

Nexon

Co.

Ltd.

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

Japan

359,336

11,659,750

Nintendo

Co.

Ltd.

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

Japan

150,000

84,545,328

a,b

ROBLOX

Corp.,

A

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

United

States

972,700

63,060,141

a

Sea

Ltd.,

ADR

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

Taiwan

2,500,000

558,075,000

a

Spotify

Technology

SA

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

United

States

300,000

80,385,000

964,186,019

Equity

Real

Estate

Investment

Trusts

(REITs)

1.4%

Crown

Castle

International

Corp.

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

United

States

500,000

86,065,000

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

43

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Equity

Real

Estate

Investment

Trusts

(REITs)

(continued)

Equinix,

Inc.

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

United

States

200,000

$

135,918,000

SBA

Communications

Corp.

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

United

States

400,000

111,020,000

333,003,000

Health

Care

Equipment

&

Supplies

6.3%

Abbott

Laboratories

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

United

States

1,400,000

167,776,000

a,b

CryoPort,

Inc.

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

United

States

250,000

13,002,500

Danaher

Corp.

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

United

States

1,300,000

292,604,000

a

DexCom,

Inc.

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

United

States

100,000

35,939,000

a

Edwards

Lifesciences

Corp.

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

United

States

1,200,000

100,368,000

a

IDEXX

Laboratories,

Inc.

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

United

States

600,000

293,586,000

a

Inari

Medical,

Inc.

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

United

States

800,000

85,600,000

a

Intuitive

Surgical,

Inc.

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

United

States

210,000

155,177,400

a

Outset

Medical,

Inc.

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

United

States

110,000

5,982,900

ResMed,

Inc.

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

United

States

400,000

77,608,000

STERIS

plc

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

United

States

500,000

95,240,000

Stryker

Corp.

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

United

States

500,000

121,790,000

1,444,673,800

Health

Care

Providers

&

Services

0.8%

a

Accolade,

Inc.

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

United

States

52,500

2,381,925

a

Guardant

Health,

Inc.

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

United

States

650,000

99,222,500

UnitedHealth

Group,

Inc.

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

United

States

200,000

74,414,000

176,018,425

Health

Care

Technology

2.5%

a

Certara,

Inc.

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

United

States

500,000

13,650,000

a

Inspire

Medical

Systems,

Inc.

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

United

States

750,000

155,242,500

a

Teladoc

Health,

Inc.

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

United

States

829,520

150,765,260

a

Veeva

Systems,

Inc.,

A

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

United

States

1,000,000

261,240,000

580,897,760

Hotels,

Restaurants

&

Leisure

0.1%

a,b

Airbnb,

Inc.,

A

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

United

States

89,400

16,801,836

Industrial

Conglomerates

0.4%

Roper

Technologies,

Inc.

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

United

States

200,000

80,668,000

Interactive

Media

&

Services

9.4%

a

Adevinta

ASA

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

France

1,000,000

14,733,294

a

Alphabet,

Inc.,

A

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

United

States

250,000

515,630,000

a

Alphabet,

Inc.,

C

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

United

States

62,170

128,606,727

a,b

Bumble,

Inc.,

A

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

United

States

230,600

14,384,828

a

Facebook,

Inc.,

A

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

United

States

2,000,000

589,060,000

a,c

Kuaishou

Technology,

144A,

Reg

S

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

China

129,200

4,487,236

a

Match

Group,

Inc.

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

United

States

1,000,000

137,380,000

a

Pinterest,

Inc.,

A

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

United

States

2,500,000

185,075,000

a

Snap,

Inc.,

A

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

United

States

2,000,000

104,580,000

Tencent

Holdings

Ltd.

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

China

5,000,000

399,040,343

a,b

Zillow

Group,

Inc.,

C

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

United

States

50,000

6,482,000

a

ZoomInfo

Technologies,

Inc.,

A

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

United

States

1,600,000

78,240,000

2,177,699,428

Internet

&

Direct

Marketing

Retail

13.1%

a

Alibaba

Group

Holding

Ltd.,

ADR

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

China

800,000

181,384,000

a

Amazon.com,

Inc.

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

United

States

500,000

1,547,040,000

a

Booking

Holdings,

Inc.

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

United

States

40,000

93,193,600

a,b

Chewy,

Inc.,

A

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

United

States

2,000,000

169,420,000

a,b

Coupang,

Inc.

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

South

Korea

1,307,400

64,520,190

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Internet

&

Direct

Marketing

Retail

(continued)

a,c

Delivery

Hero

SE,

144A,

Reg

S

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

Germany

750,000

$

97,204,616

a,b

DoorDash,

Inc.,

A

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

United

States

50,000

6,556,500

a

Farfetch

Ltd.,

A

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

United

Kingdom

400,000

21,208,000

a

Fiverr

International

Ltd.

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

Israel

1,000,000

217,180,000

a,c

JD

Health

International,

Inc.,

144A,

Reg

S

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

China

750,000

10,910,231

a

JD.com,

Inc.,

ADR

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

China

400,000

33,732,000

a,c

Meituan

Dianping,

B,

144A,

Reg

S

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

China

1,000,000

39,024,447

a

MercadoLibre,

Inc.

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

Argentina

300,000

441,642,000

a

Ozon

Holdings

plc,

ADR

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

Russia

125,000

7,008,750

a

Pinduoduo,

Inc.,

ADR

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

China

250,000

33,470,000

a

THG

plc

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

United

Kingdom

2,500,000

21,485,810

a,c

Zalando

SE,

144A,

Reg

S

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

Germany

500,000

48,989,613

3,033,969,757

IT

Services

15.1%

a,c

Adyen

NV,

144A,

Reg

S

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

Netherlands

200,000

446,243,014

a

Afterpay

Ltd.

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

Australia

600,000

46,862,450

a

EPAM

Systems,

Inc.

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

United

States

350,000

138,841,500

a

Globant

SA

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

Argentina

250,000

51,902,500

Mastercard,

Inc.,

A

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

United

States

1,000,000

356,050,000

a

MongoDB,

Inc.

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

United

States

300,000

80,229,000

a,c

Nuvei

Corp.,

144A,

Reg

S

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

Canada

300,000

18,150,000

a

Okta,

Inc.

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

United

States

400,000

88,172,000

a

PayPal

Holdings,

Inc.

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

United

States

2,300,000

558,532,000

a

Shopify,

Inc.,

A

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

Canada

500,000

551,969,287

a

Snowflake,

Inc.,

A

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

United

States

201,700

46,245,776

a

Square,

Inc.,

A

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

United

States

1,500,000

340,575,000

a,c

Trustpilot

Group

plc,

144A,

Reg

S

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

United

Kingdom

2,007,100

7,331,455

a

Twilio,

Inc.,

A

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

United

States

1,000,000

340,760,000

Visa,

Inc.,

A

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

United

States

1,300,000

275,249,000

a

Wix.com

Ltd.

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

Israel

500,000

139,610,000

3,486,722,982

Life

Sciences

Tools

&

Services

4.6%

a

10X

Genomics,

Inc.,

A

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

United

States

565,000

102,265,000

a,b

Berkeley

Lights,

Inc.

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

United

States

100,000

5,023,000

a

Bio-Rad

Laboratories,

Inc.,

A

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

United

States

50,000

28,558,500

a

Evotec

SE

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

Germany

500,000

18,013,430

a

Illumina,

Inc.

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

United

States

350,000

134,421,000

Lonza

Group

AG

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

Switzerland

250,000

139,839,672

a

Maravai

LifeSciences

Holdings,

Inc.,

A

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

United

States

500,000

17,820,000

a,b

QIAGEN

NV

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

United

States

65,000

3,164,850

a

Repligen

Corp.

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

United

States

750,000

145,807,500

a,b

Seer,

Inc.

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

United

States

50,000

2,501,000

Thermo

Fisher

Scientific,

Inc.

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

United

States

600,000

273,828,000

a,c

Wuxi

Biologics

Cayman,

Inc.,

144A,

Reg

S

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

China

15,000,000

189,162,562

1,060,404,514

Media

0.8%

a

Charter

Communications,

Inc.,

A

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

United

States

130,000

80,212,600

a

Liberty

Broadband

Corp.,

A

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

United

States

750,000

108,862,500

189,075,100

Pharmaceuticals

1.0%

a

Catalent,

Inc.

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

United

States

1,500,000

157,965,000

Zoetis,

Inc.

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

United

States

500,000

78,740,000

236,705,000

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

45

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Professional

Services

0.7%

a

CoStar

Group,

Inc.

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

United

States

200,000

$

164,378,000

Road

&

Rail

0.3%

a

Uber

Technologies,

Inc.

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

United

States

1,250,000

68,137,500

Semiconductors

&

Semiconductor

Equipment

7.7%

Analog

Devices,

Inc.

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

United

States

800,000

124,064,000

ASML

Holding

NV,

NYRS

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

Netherlands

500,000

308,680,000

Entegris,

Inc.

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

United

States

750,000

83,850,000

Infineon

Technologies

AG

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

Germany

150,000

6,381,595

Intel

Corp.

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

United

States

750,000

48,000,000

KLA

Corp.

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

United

States

305,000

100,772,000

Lam

Research

Corp.

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

United

States

500,000

297,620,000

Monolithic

Power

Systems,

Inc.

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

United

States

500,000

176,605,000

NVIDIA

Corp.

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

United

States

875,000

467,188,750

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

800,000

94,624,000

Teradyne,

Inc.

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

United

States

550,000

66,924,000

Texas

Instruments,

Inc.

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

United

States

25,000

4,724,750

1,779,434,095

Software

20.1%

a,b

ACV

Auctions,

Inc.,

A

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

United

States

121,800

4,215,498

a

Adobe,

Inc.

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

United

States

600,000

285,222,000

a

ANSYS,

Inc.

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

United

States

400,000

135,824,000

a

Aspen

Technology,

Inc.

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

United

States

325,000

46,907,250

a

Atlassian

Corp.

plc,

A

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

United

States

1,000,000

210,760,000

a

Autodesk,

Inc.

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

United

States

550,000

152,432,500

a

Avalara,

Inc.

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

United

States

900,000

120,087,000

Bentley

Systems,

Inc.,

B

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

United

States

225,000

10,559,250

a

Bill.com

Holdings,

Inc.

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

United

States

200,000

29,100,000

a

Cadence

Design

Systems,

Inc.

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

United

States

1,150,000

157,538,500

a

Cerence,

Inc.

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

United

States

1,500,000

134,370,000

a

Coupa

Software,

Inc.

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

United

States

350,000

89,068,000

a

Crowdstrike

Holdings,

Inc.,

A

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

United

States

700,000

127,757,000

a

Datadog,

Inc.,

A

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

United

States

950,000

79,173,000

a

DocuSign,

Inc.

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

United

States

1,350,000

273,307,500

a

Five9,

Inc.

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

United

States

100,000

15,633,000

a

HubSpot,

Inc.

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

United

States

600,000

272,526,000

Intuit,

Inc.

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

United

States

750,000

287,295,000

a

Lightspeed

POS,

Inc.

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

Canada

150,000

9,432,288

Microsoft

Corp.

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

United

States

3,000,000

707,310,000

a

Plaid,

Inc.

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

Japan

466,600

15,517,609

a

Q2

Holdings,

Inc.

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

United

States

1,000,000

100,200,000

a

RingCentral,

Inc.,

A

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

United

States

450,000

134,046,000

a

salesforce.com,

Inc.

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

United

States

1,000,000

211,870,000

a

ServiceNow,

Inc.

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

United

States

1,000,000

500,110,000

a

Synopsys,

Inc.

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

United

States

900,000

223,002,000

a,b

Tuya,

Inc.,

ADR

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

China

28,800

608,832

a

Tyler

Technologies,

Inc.

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

United

States

210,000

89,151,300

a

Workday,

Inc.,

A

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

United

States

550,000

136,636,500

a

Xero

Ltd.

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

New

Zealand

200,000

19,357,181

a

Zendesk,

Inc.

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

United

States

500,000

66,310,000

4,645,327,208

Specialty

Retail

0.6%

a,c

Auto1

Group

SE,

144A,

Reg

S

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

Germany

100,000

5,669,521

a

Carvana

Co.

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

United

States

500,000

131,200,000

136,869,521

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

s

See

Abbreviations

on

page

138

.

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Technology

Hardware,

Storage

&

Peripherals

0.8%

Apple,

Inc.

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

United

States

1,600,000

$

195,440,000

Textiles,

Apparel

&

Luxury

Goods

0.1%

NIKE,

Inc.,

B

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

United

States

250,000

33,222,500

Total

Common

Stocks

(Cost

$11,688,109,818)

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

22,638,484,646

Short

Term

Investments

2.3%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

1.8%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

408,348,417

408,348,417

Total

Money

Market

Funds

(Cost

$408,348,417)

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

408,348,417

Principal

Amount

*

a

a

a

a

a

Repurchase

Agreements

0.1%

f

Joint

Repurchase

Agreement,

0.004%,

4/01/21

(Maturity

Value

$22,372,848)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$13,045,160)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$3,131,080)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$6,196,607)

Collateralized

by

U.S.

Government

Agency

Securities,

2.25%

-

5%,

9/20/42

-

3/15/56;

U.S.

Treasury

Bonds,

6.25%

-

8.13%,

5/15/21

-

2/15/25;

and

U.S.

Treasury

Note,

1.63%,

11/15/22

(valued

at

$22,830,991)

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

22,372,845

22,372,845

Total

Repurchase

Agreements

(Cost

$22,372,845)

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

22,372,845

g

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.4%

Country

Shares

Money

Market

Funds

0.3%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

86,108,000

86,108,000

Principal

Amount

*

Repurchase

Agreements

0.1%

f

Joint

Repurchase

Agreement,

BNP

Paribas

SA,

0%,

4/01/21

(Maturity

Value

$20,911,487)

Collateralized

by

U.S.

Government

Bond,

6%,

2/15/26;

U.S.

Government

Bonds,

Strips,

11/15/22

-

11/15/25;

U.S.

Treasury

Notes,

0.125%

-

1.875%,

2/28/22

-

2/28/23;

and

U.S.

Treasury

Bill,

Discount

Note,

7/20/21

(valued

at

$21,329,717)

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

20,911,487

20,911,487

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$107,019,487)

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

107,019,487

Total

Short

Term

Investments

(Cost

$537,740,749

)

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

537,740,749

a

Total

Investments

(Cost

$12,225,850,567)

100.2%

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

$23,176,225,395

Other

Assets,

less

Liabilities

(0.2)%

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

(51,752,052)

Net

Assets

100.0%

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

$23,124,473,343

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

47

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

March

31,

2021.

See

Note

1(h).

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

March

31,

2021,

the

aggregate

value

of

these

securities

was

$867,172,695,

representing

3.8%

of

net

assets.

d

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

f

See

Note

1(c)

regarding

joint

repurchase

agreement.

g

See

Note

1(h)

regarding

securities

on

loan.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

franklintempleton.com

Semiannual

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accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$25.05

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.10)

(0.10)

Net

realized

and

unrealized

gains

(losses)

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

2.60

4.99

Total

from

investment

operations

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

2.50

4.89

Less

distributions

from:

Net

realized

gains

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

(0.21)

—

Net

asset

value,

end

of

period

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

$27.34

$25.05

Total

return

d

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

9.99%

24.26%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.36%

1.81%

Expenses

net

of

waiver

and

payments

by

affiliates

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

1.10%

1.10%

Net

investment

(loss)

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

(0.72)%

(0.72)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$52,727

$26,793

Portfolio

turnover

rate

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

13.04%

33.93%

a

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

49

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$24.94

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.20)

(0.21)

Net

realized

and

unrealized

gains

(losses)

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

2.58

4.99

Total

from

investment

operations

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

2.38

4.78

Less

distributions

from:

Net

realized

gains

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

(0.21)

—

Net

asset

value,

end

of

period

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

$27.11

$24.94

Total

return

d

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

9.55%

23.71%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

2.12%

2.56%

Expenses

net

of

waiver

and

payments

by

affiliates

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

1.86%

1.85%

Net

investment

(loss)

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

(1.47)%

(1.47)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$5,953

$3,931

Portfolio

turnover

rate

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

13.04%

33.93%

a

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

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accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$25.06

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.14)

(0.11)

Net

realized

and

unrealized

gains

(losses)

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

2.60

5.01

Total

from

investment

operations

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

2.46

4.90

Less

distributions

from:

Net

realized

gains

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

(0.21)

—

Net

asset

value,

end

of

period

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

$27.31

$25.06

Total

return

d

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

9.82%

24.31%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.69%

1.65%

Expenses

net

of

waiver

and

payments

by

affiliates

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

1.42%

1.04%

Net

investment

(loss)

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

(1.03)%

(0.77)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$685

$643

Portfolio

turnover

rate

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

13.04%

33.93%

a

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

51

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$25.10

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.06)

(0.07)

Net

realized

and

unrealized

gains

(losses)

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

2.61

5.01

Total

from

investment

operations

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

2.55

4.94

Less

distributions

from:

Net

realized

gains

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

(0.21)

—

Net

asset

value,

end

of

period

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

$27.44

$25.10

Total

return

d

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

10.17%

24.50%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.07%

2.08%

Expenses

net

of

waiver

and

payments

by

affiliates

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

0.81%

0.85%

Net

investment

(loss)

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

(0.42)%

(0.52)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$72

$65

Portfolio

turnover

rate

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

13.04%

33.93%

a

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

Year

Ended

September

30,

2016

a

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$25.10

$17.62

$17.24

$13.36

$10.93

$10.00

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.06)

(0.09)

(0.06)

(0.05)

(0.02)

(0.01)

Net

realized

and

unrealized

gains

(losses)

2.60

8.66

0.52

3.93

2.49

0.94

Total

from

investment

operations

........

2.54

8.57

0.46

3.88

2.47

0.93

Less

distributions

from:

Net

investment

income

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

—

—

(0.01)

—

(0.01)

—

Net

realized

gains

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

(0.21)

(1.09)

(0.07)

—

(0.03)

—

Total

distributions

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

(0.21)

(1.09)

(0.08)

—

(0.04)

—

Net

asset

value,

end

of

period

..........

$27.43

$25.10

$17.62

$17.24

$13.36

$10.93

Total

return

d

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

10.13%

51.20%

2.80%

29.04%

22.78%

9.30%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.12%

2.04%

2.41%

2.23%

2.31%

4.76%

Expenses

net

of

waiver

and

payments

by

affiliates

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

0.85%

0.88%

1.00%

1.00%

f

1.00%

f

1.00%

Net

investment

(loss)

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

(0.46)%

(0.41)%

(0.36)%

(0.34)%

(0.20)%

(0.18)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$21,090

$16,747

$4,404

$4,310

$3,341

$2,732

Portfolio

turnover

rate

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

13.04%

33.93%

28.65%

14.47%

28.48%

7.46%

a

For

the

period

April

12,

2016

(commencement

of

operations)

to

September

30,

2016.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited),

March

31,

2021

Franklin

Focused

Growth

Fund

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

Common

Stocks

98.6%

Automobiles

3.4%

a

Tesla,

Inc.

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

United

States

4,082

$

2,726,490

Capital

Markets

1.2%

MSCI,

Inc.

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

United

States

2,258

946,734

Diversified

Financial

Services

0.0%

†

a

Appier

Group,

Inc.

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

Japan

2,400

34,897

Electric

Utilities

2.2%

NextEra

Energy,

Inc.

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

United

States

23,503

1,777,062

Entertainment

4.6%

a

Netflix,

Inc.

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

United

States

1,348

703,198

a

ROBLOX

Corp.,

A

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

United

States

12,041

780,618

a

Sea

Ltd.,

ADR

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

Taiwan

9,831

2,194,574

3,678,390

Equity

Real

Estate

Investment

Trusts

(REITs)

1.2%

Crown

Castle

International

Corp.

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

United

States

5,419

932,773

Food

&

Staples

Retailing

1.6%

Costco

Wholesale

Corp.

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

United

States

3,691

1,301,004

Health

Care

Equipment

&

Supplies

9.6%

Abbott

Laboratories

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

United

States

13,162

1,577,334

Danaher

Corp.

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

United

States

9,955

2,240,672

a

IDEXX

Laboratories,

Inc.

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

United

States

4,516

2,209,724

a

Intuitive

Surgical,

Inc.

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

United

States

2,265

1,673,699

7,701,429

Health

Care

Technology

2.2%

a

Veeva

Systems,

Inc.,

A

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

United

States

6,782

1,771,730

Interactive

Media

&

Services

10.1%

a

Facebook,

Inc.,

A

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

United

States

14,482

4,265,383

a

Pinterest,

Inc.,

A

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

United

States

17,139

1,268,800

Tencent

Holdings

Ltd.

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

China

33,117

2,643,004

8,177,187

Internet

&

Direct

Marketing

Retail

11.8%

a

Amazon.com,

Inc.

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

United

States

2,282

7,060,691

a

MercadoLibre

,

Inc.

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

Argentina

1,678

2,470,251

9,530,942

IT

Services

18.4%

a,b

Adyen

NV,

144A,

Reg

S

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

Netherlands

1,100

2,454,337

Mastercard

,

Inc.,

A

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

United

States

5,885

2,095,354

a

PayPal

Holdings,

Inc.

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

United

States

13,110

3,183,632

a

Shopify,

Inc.,

A

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

Canada

3,513

3,878,136

a

Square,

Inc.,

A

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

United

States

7,937

1,802,096

a

Twilio

,

Inc.,

A

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

United

States

4,187

1,426,762

14,840,317

Life

Sciences

Tools

&

Services

1.6%

a,b

Wuxi

Biologics

Cayman,

Inc.,

144A,

Reg

S

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

China

104,439

1,317,063

Media

2.1%

a

Charter

Communications,

Inc.,

A

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

United

States

2,714

1,674,592

Personal

Products

1.1%

Estee

Lauder

Cos.,

Inc.

(The),

A

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

United

States

3,151

916,468

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Focused

Growth

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

s

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Professional

Services

1.0%

a

CoStar

Group,

Inc.

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

United

States

960

$

789,014

Semiconductors

&

Semiconductor

Equipment

9.9%

Analog

Devices,

Inc.

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

United

States

10,325

1,601,201

ASML

Holding

NV,

NYRS

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

Netherlands

2,684

1,656,994

NVIDIA

Corp.

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

United

States

5,879

3,138,975

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

13,086

1,547,812

7,944,982

Software

16.6%

a

Adobe,

Inc.

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

United

States

3,172

1,507,874

a

Atlassian

Corp.

plc,

A

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

United

States

3,164

666,845

Microsoft

Corp.

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

United

States

28,264

6,663,803

a

salesforce.com,

Inc.

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

United

States

6,330

1,341,137

a

ServiceNow

,

Inc.

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

United

States

6,322

3,161,695

13,341,354

Total

Common

Stocks

(Cost

$65,716,587)

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

79,402,428

Short

Term

Investments

1.2%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

1.2%

c,d

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

929,528

929,528

Total

Money

Market

Funds

(Cost

$929,528)

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

929,528

Total

Short

Term

Investments

(Cost

$929,528

)

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

929,528

a

Total

Investments

(Cost

$66,646,115)

99.8%

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

$80,331,956

Other

Assets,

less

Liabilities

0.2%

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

194,564

Net

Assets

100.0%

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

$80,526,520

See

abbreviations

on

page

138

.

†

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,

2021,

the

aggregate

value

of

these

securities

was

$3,771,400,

representing

4.7%

of

net

assets.

c

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

d

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

55

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$129.91

$110.04

$107.59

$91.61

$78.54

$72.40

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.02

0.33

0.46

0.41

0.40

0.47

c

Net

realized

and

unrealized

gains

(losses)

18.92

25.99

3.47

18.18

15.56

8.51

Total

from

investment

operations

........

18.94

26.32

3.93

18.59

15.96

8.98

Less

distributions

from:

Net

investment

income

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

(0.18)

(0.46)

(0.44)

(0.36)

(0.39)

(0.47)

Net

realized

gains

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

(10.62)

(5.99)

(1.04)

(2.25)

(2.50)

(2.37)

Total

distributions

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

(10.80)

(6.45)

(1.48)

(2.61)

(2.89)

(2.84)

Net

asset

value,

end

of

period

..........

$138.05

$129.91

$110.04

$107.59

$91.61

$78.54

Total

return

d

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

15.05%

25.09%

3.79%

20.72%

21.12%

12.57%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

0.79%

0.82%

0.83%

0.83%

0.88%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.79%

g

0.81%

0.83%

g

0.83%

g

0.87%

0.86%

Net

investment

income

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

0.03%

0.29%

0.45%

0.41%

0.47%

0.63%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$12,345,523

$10,990,297

$9,157,154

$9,044,834

$8,051,641

$7,628,523

Portfolio

turnover

rate

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

3.80%

9.01%

4.91%

h

6.05%

h

5.60%

7.53%

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

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.50%.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$117.27

$100.21

$98.38

$84.25

$72.60

$67.17

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.43)

(0.47)

(0.29)

(0.30)

(0.21)

(0.08)

c

Net

realized

and

unrealized

gains

(losses)

17.00

23.52

3.16

16.68

14.36

7.88

Total

from

investment

operations

........

16.57

23.05

2.87

16.38

14.15

7.80

Less

distributions

from:

Net

realized

gains

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

(10.61)

(5.99)

(1.04)

(2.25)

(2.50)

(2.37)

Net

asset

value,

end

of

period

..........

$123.23

$117.27

$100.21

$98.38

$84.25

$72.60

Total

return

d

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

14.62%

24.16%

3.02%

19.82%

20.21%

11.74%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.53%

1.57%

1.58%

1.58%

1.63%

1.63%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.53%

g

1.56%

1.58%

g

1.58%

g

1.62%

1.61%

Net

investment

(loss)

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

(0.71)%

(0.46)%

(0.30)%

(0.34)%

(0.28)%

(0.12)%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$759,731

$727,093

$704,217

$1,060,258

$930,751

$846,965

Portfolio

turnover

rate

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

3.80%

9.01%

4.91%

h

6.05%

h

5.60%

7.53%

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

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

(0.25)%.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

57

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$129.28

$109.49

$107.00

$91.13

$78.14

$71.93

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.15)

0.05

0.21

0.16

0.19

0.29

c

Net

realized

and

unrealized

gains

(losses)

18.83

25.86

3.46

18.09

15.51

8.45

Total

from

investment

operations

........

18.68

25.91

3.67

18.25

15.70

8.74

Less

distributions

from:

Net

investment

income

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

—

(0.13)

(0.14)

(0.13)

(0.21)

(0.16)

Net

realized

gains

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

(10.61)

(5.99)

(1.04)

(2.25)

(2.50)

(2.37)

Total

distributions

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

(10.61)

(6.12)

(1.18)

(2.38)

(2.71)

(2.53)

Net

asset

value,

end

of

period

..........

$137.35

$129.28

$109.49

$107.00

$91.13

$78.14

Total

return

d

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

14.91%

24.78%

3.54%

20.42%

20.81%

12.29%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.04%

1.07%

1.08%

1.08%

1.13%

1.13%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.04%

g

1.06%

1.08%

g

1.08%

g

1.12%

1.11%

Net

investment

income

(loss)

..........

(0.22)%

0.04%

0.20%

0.16%

0.22%

0.38%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$405,801

$420,082

$435,331

$524,960

$510,317

$477,221

Portfolio

turnover

rate

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

3.80%

9.01%

4.91%

h

6.05%

h

5.60%

7.53%

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

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.25%.

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

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$130.31

$110.37

$107.90

$91.90

$78.79

$72.69

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.24

0.71

0.83

0.77

0.74

0.78

c

Net

realized

and

unrealized

gains

(losses)

18.97

26.06

3.47

18.22

15.59

8.56

Total

from

investment

operations

........

19.21

26.77

4.30

18.99

16.33

9.34

Less

distributions

from:

Net

investment

income

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

(0.47)

(0.84)

(0.79)

(0.74)

(0.72)

(0.87)

Net

realized

gains

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

(10.62)

(5.99)

(1.04)

(2.25)

(2.50)

(2.37)

Total

distributions

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

(11.09)

(6.83)

(1.83)

(2.99)

(3.22)

(3.24)

Net

asset

value,

end

of

period

..........

$138.43

$130.31

$110.37

$107.90

$91.90

$78.79

Total

return

d

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

15.24%

25.51%

4.16%

21.17%

21.61%

13.05%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

0.46%

0.48%

0.48%

0.47%

0.46%

0.46%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.46%

g

0.48%

g

0.48%

g

0.46%

0.45%

0.44%

Net

investment

income

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

0.35%

0.63%

0.80%

0.78%

0.89%

1.05%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,087,363

$2,999,370

$2,545,800

$2,634,455

$1,700,993

$1,247,825

Portfolio

turnover

rate

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

3.80%

9.01%

4.91%

h

6.05%

h

5.60%

7.53%

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

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.92%.

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

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

59

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$130.38

$110.41

$107.95

$91.90

$78.80

$72.67

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.19

0.62

0.72

0.66

0.60

0.65

c

Net

realized

and

unrealized

gains

(losses)

18.99

26.07

3.47

18.23

15.61

8.56

Total

from

investment

operations

........

19.18

26.69

4.19

18.89

16.21

9.21

Less

distributions

from:

Net

investment

income

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

(0.39)

(0.73)

(0.69)

(0.59)

(0.61)

(0.71)

Net

realized

gains

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

(10.62)

(5.99)

(1.04)

(2.25)

(2.50)

(2.37)

Total

distributions

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

(11.01)

(6.72)

(1.73)

(2.84)

(3.11)

(3.08)

Net

asset

value,

end

of

period

..........

$138.55

$130.38

$110.41

$107.95

$91.90

$78.80

Total

return

d

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

15.20%

25.41%

4.05%

21.02%

21.43%

12.85%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

0.54%

0.57%

0.58%

0.58%

0.63%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.54%

g

0.56%

0.58%

g

0.58%

g

0.62%

0.61%

Net

investment

income

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

0.28%

0.54%

0.70%

0.66%

0.72%

0.88%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,830,373

$3,549,412

$3,154,342

$3,139,208

$2,801,153

$1,998,483

Portfolio

turnover

rate

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

3.80%

9.01%

4.91%

h

6.05%

h

5.60%

7.53%

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

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.75%.

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

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13

.

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited),

March

31,

2021

Franklin

Growth

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

99.6%

Aerospace

&

Defense

3.9%

BWX

Technologies,

Inc.

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

United

States

1,395,585

$

92,024,875

Lockheed

Martin

Corp.

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

United

States

491,971

181,783,285

a

Mercury

Systems,

Inc.

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

United

States

809,208

57,170,545

Northrop

Grumman

Corp.

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

United

States

838,136

271,254,335

Raytheon

Technologies

Corp.

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

United

States

2,448,182

189,171,023

791,404,063

Auto

Components

0.4%

a

Aptiv

plc

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

United

States

607,271

83,742,671

Beverages

2.8%

Brown-Forman

Corp.,

B

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

United

States

1,598,904

110,276,409

Constellation

Brands,

Inc.,

A

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

United

States

548,723

125,108,844

a

Monster

Beverage

Corp.

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

United

States

2,680,594

244,175,308

PepsiCo,

Inc.

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

United

States

639,563

90,466,186

570,026,747

Biotechnology

2.0%

AbbVie,

Inc.

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

United

States

452,614

48,981,887

Amgen,

Inc.

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

United

States

661,595

164,611,452

a

Deciphera

Pharmaceuticals,

Inc.

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

United

States

573,931

25,735,066

a

Iovance

Biotherapeutics

,

Inc.

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

United

States

406,741

12,877,420

a

Mirati

Therapeutics,

Inc.

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

United

States

267,000

45,737,100

a

Neurocrine

Biosciences,

Inc.

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

United

States

369,571

35,940,780

a

Olink

Holding

AB,

ADR

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

Sweden

59,800

2,152,800

a

PTC

Therapeutics,

Inc.

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

United

States

965,463

45,714,673

a

Regeneron

Pharmaceuticals,

Inc.

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

United

States

74,848

35,413,583

417,164,761

Building

Products

1.3%

Allegion

plc

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

United

States

688,759

86,521,906

Trane

Technologies

plc

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

United

States

1,082,336

179,191,548

265,713,454

Capital

Markets

3.7%

a,b,c,d,e

ArcLight

Clean

Transition

Corp.

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

United

States

1,780,600

29,909,883

BlackRock,

Inc.

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

United

States

226,428

170,717,655

Charles

Schwab

Corp.

(The)

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

United

States

3,001,382

195,630,079

a,b,c,e

Churchill

Capital

Corp.

IV

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

United

States

4,040,405

60,606,075

Intercontinental

Exchange,

Inc.

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

United

States

1,402,427

156,623,047

MarketAxess

Holdings,

Inc.

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

United

States

90,147

44,885,994

S&P

Global,

Inc.

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

United

States

104,350

36,821,985

Tradeweb

Markets,

Inc.,

A

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

United

States

916,652

67,832,248

763,026,966

Chemicals

2.3%

Air

Products

and

Chemicals,

Inc.

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

United

States

491,971

138,411,121

a,f

Danimer

Scientific,

Inc.

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

United

States

214,900

8,112,475

Ecolab,

Inc.

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

United

States

613,649

131,363,842

Linde

plc

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

United

Kingdom

714,866

200,262,561

478,149,999

Commercial

Services

&

Supplies

0.3%

Republic

Services,

Inc.

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

United

States

640,528

63,636,457

Construction

Materials

0.7%

Martin

Marietta

Materials,

Inc.

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

United

States

393,578

132,171,364

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

61

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electric

Utilities

0.8%

NextEra

Energy,

Inc.

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

United

States

2,020,008

$

152,732,805

Electrical

Equipment

0.4%

AMETEK,

Inc.

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

United

States

688,759

87,975,187

Electronic

Equipment,

Instruments

&

Components

2.8%

Amphenol

Corp.,

A

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

United

States

2,849,842

188,004,077

Cognex

Corp.

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

United

States

410,654

34,080,175

a

Keysight

Technologies,

Inc.

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

United

States

720,474

103,315,972

TE

Connectivity

Ltd.

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

United

States

1,838,883

237,418,184

a

Vontier

Corp.

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

United

States

431,281

13,054,876

575,873,284

Entertainment

1.6%

a

Walt

Disney

Co.

(The)

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

United

States

1,714,262

316,315,624

Equity

Real

Estate

Investment

Trusts

(REITs)

1.0%

Crown

Castle

International

Corp.

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

United

States

1,125,695

193,765,880

Food

Products

0.6%

Lamb

Weston

Holdings,

Inc.

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

United

States

539,519

41,801,932

Mondelez

International,

Inc.,

A

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

United

States

1,475,911

86,385,071

128,187,003

Health

Care

Equipment

&

Supplies

5.9%

Abbott

Laboratories

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

United

States

1,328,321

159,185,989

Danaher

Corp.

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

United

States

1,133,531

255,135,158

a

Edwards

Lifesciences

Corp.

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

United

States

1,180,733

98,756,508

a

Haemonetics

Corp.

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

United

States

983,941

109,227,290

a

Intuitive

Surgical,

Inc.

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

United

States

415,775

307,232,779

Stryker

Corp.

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

United

States

403,906

98,383,423

Teleflex,

Inc.

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

United

States

424,481

176,354,876

1,204,276,023

Health

Care

Providers

&

Services

1.0%

a

Guardant

Health,

Inc.

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

United

States

156,800

23,935,520

a

Laboratory

Corp.

of

America

Holdings

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

United

States

491,971

125,467,364

UnitedHealth

Group,

Inc.

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

United

States

153,671

57,176,369

206,579,253

Health

Care

Technology

0.4%

a,f

American

Well

Corp.,

A

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

United

States

399,194

6,934,000

a

Certara

,

Inc.

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

United

States

249,400

6,808,620

a

Veeva

Systems,

Inc.,

A

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

United

States

252,746

66,027,365

79,769,985

Hotels,

Restaurants

&

Leisure

0.5%

a,f

Airbnb,

Inc.,

A

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

United

States

83,600

15,711,784

a

Las

Vegas

Sands

Corp.

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

United

States

1,547,725

94,039,771

109,751,555

Interactive

Media

&

Services

5.1%

a

Alphabet,

Inc.,

A

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

United

States

165,056

340,431,301

a

Alphabet,

Inc.,

C

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

United

States

155,889

322,476,662

a

Facebook,

Inc.,

A

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

United

States

793,404

233,681,280

a

IAC/InterActiveCorp

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

United

States

295,183

63,851,035

a

Match

Group,

Inc.

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

United

States

637,122

87,527,820

1,047,968,098

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Internet

&

Direct

Marketing

Retail

6.0%

a

Alibaba

Group

Holding

Ltd.,

ADR

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

China

522,297

$

118,420,399

a

Amazon.com,

Inc.

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

United

States

332,203

1,027,862,658

a

Booking

Holdings,

Inc.

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

United

States

29,136

67,882,218

1,214,165,275

IT

Services

6.7%

a,g

Adyen

NV,

144A,

Reg

S

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

Netherlands

59,595

132,969,262

Automatic

Data

Processing,

Inc.

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

United

States

257,059

48,447,910

Mastercard

,

Inc.,

A

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

United

States

1,334,308

475,080,363

a

Okta

,

Inc.

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

United

States

173,896

38,331,895

a

PayPal

Holdings,

Inc.

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

United

States

725,315

176,135,495

a

Snowflake,

Inc.,

A

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

United

States

255,854

58,662,205

a

Twilio

,

Inc.,

A

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

United

States

452,474

154,185,040

Visa,

Inc.,

A

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

United

States

1,377,517

291,661,675

1,375,473,845

Life

Sciences

Tools

&

Services

4.9%

a

10X

Genomics,

Inc.,

A

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

United

States

315,266

57,063,146

Agilent

Technologies,

Inc.

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

United

States

1,279,123

162,627,698

a

Illumina,

Inc.

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

United

States

591,874

227,315,128

a

Maravai

LifeSciences

Holdings,

Inc.,

A

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

United

States

496,000

17,677,440

a

Mettler

-Toledo

International,

Inc.

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

United

States

356,178

411,631,353

a,f

Seer,

Inc.

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

United

States

42,600

2,130,852

a,g

Wuxi

Biologics

Cayman,

Inc.,

144A,

Reg

S

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

China

9,367,269

118,129,107

996,574,724

Machinery

4.2%

Caterpillar,

Inc.

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

United

States

384,069

89,054,079

Deere

&

Co.

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

United

States

491,971

184,066,030

Fortive

Corp.

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

United

States

1,078,204

76,164,331

Illinois

Tool

Works,

Inc.

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

United

States

983,941

217,962,610

a

Ingersoll

Rand,

Inc.

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

United

States

955,052

46,998,109

Otis

Worldwide

Corp.

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

United

States

522,147

35,740,962

Stanley

Black

&

Decker,

Inc.

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

United

States

781,107

155,963,635

Xylem,

Inc.

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

United

States

469,300

49,360,974

855,310,730

Media

0.9%

Cable

One,

Inc.

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

United

States

78,717

143,923,014

Comcast

Corp.,

A

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

United

States

790,241

42,759,941

186,682,955

Personal

Products

0.1%

Estee

Lauder

Cos.,

Inc.

(The),

A

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

United

States

91,468

26,603,468

Pharmaceuticals

4.5%

f

AstraZeneca

plc,

ADR

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

United

Kingdom

2,018,704

100,369,963

a

Catalent

,

Inc.

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

United

States

2,999,297

315,855,967

Eli

Lilly

and

Co.

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

United

States

1,232,723

230,297,311

Johnson

&

Johnson

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

United

States

1,180,828

194,069,082

Merck

&

Co.,

Inc.

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

United

States

983,941

75,852,011

916,444,334

Professional

Services

2.5%

a

CoStar

Group,

Inc.

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

United

States

93,528

76,869,728

Equifax,

Inc.

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

United

States

482,569

87,407,723

IHS

Markit

Ltd.

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

United

States

914,914

88,545,377

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

63

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Professional

Services

(continued)

Verisk

Analytics,

Inc.

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

United

States

1,492,799

$

263,762,655

516,585,483

Road

&

Rail

4.9%

Canadian

National

Railway

Co.

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

Canada

983,941

114,117,477

Canadian

Pacific

Railway

Ltd.

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

Canada

383,971

145,636,361

JB

Hunt

Transport

Services,

Inc.

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

United

States

491,971

82,685,566

Kansas

City

Southern

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

United

States

585,056

154,407,979

a

Uber

Technologies,

Inc.

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

United

States

1,002,639

54,653,852

Union

Pacific

Corp.

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

United

States

1,997,400

440,246,934

991,748,169

Semiconductors

&

Semiconductor

Equipment

5.3%

ASML

Holding

NV,

NYRS

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

Netherlands

403,753

249,260,952

Lam

Research

Corp.

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

United

States

29,519

17,570,890

Monolithic

Power

Systems,

Inc.

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

United

States

442,775

156,392,558

NVIDIA

Corp.

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

United

States

505,981

270,158,435

NXP

Semiconductors

NV

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

Netherlands

666,769

134,247,270

Texas

Instruments,

Inc.

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

United

States

1,377,517

260,336,938

1,087,967,043

Software

14.6%

a

Adobe,

Inc.

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

United

States

167,687

79,713,369

a

Atlassian

Corp.

plc,

A

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

United

States

216,818

45,696,562

a

Autodesk,

Inc.

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

United

States

769,883

213,373,073

a

Avalara,

Inc.

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

United

States

673,934

89,923,014

a

Bill.com

Holdings,

Inc.

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

United

States

1,066,191

155,130,791

a,f

Duck

Creek

Technologies,

Inc.

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

United

States

74,649

3,369,656

Intuit,

Inc.

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

United

States

983,941

376,908,439

Microsoft

Corp.

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

United

States

3,653,166

861,306,948

a

Paycom

Software,

Inc.

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

United

States

186,135

68,881,118

a

PTC,

Inc.

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

United

States

1,184,865

163,096,667

a

Qualtrics

International,

Inc.,

A

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

United

States

179,000

5,890,890

a

salesforce.com,

Inc.

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

United

States

554,766

117,538,272

a

ServiceNow

,

Inc.

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

United

States

870,961

435,576,306

a

Synopsys,

Inc.

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

United

States

522,615

129,493,545

a

Tyler

Technologies,

Inc.

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

United

States

118,574

50,338,220

a

Workday,

Inc.,

A

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

United

States

738,265

183,407,174

2,979,644,044

Technology

Hardware,

Storage

&

Peripherals

5.1%

Apple,

Inc.

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

United

States

8,437,354

1,030,622,791

Textiles,

Apparel

&

Luxury

Goods

1.2%

NIKE,

Inc.,

B

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

United

States

1,874,977

249,165,693

Trading

Companies

&

Distributors

0.7%

Fastenal

Co.

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

United

States

2,705,146

136,014,741

Water

Utilities

0.5%

American

Water

Works

Co.,

Inc.

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

United

States

688,759

103,258,749

Total

Common

Stocks

(Cost

$5,904,327,946)

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

20,334,493,223

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Convertible

Preferred

Stocks

0.1%

Software

0.1%

a,b,c

Stripe,

Inc.,

0%,

H

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

United

States

756,137

$

30,339,997

a

Total

Convertible

Preferred

Stocks

(Cost

$30,339,997)

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

30,339,997

Total

Long

Term

Investments

(Cost

$5,934,667,943)

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

20,364,833,220

a

Short

Term

Investments

0.5%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

0.4%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

88,668,352

88,668,352

Total

Money

Market

Funds

(Cost

$88,668,352)

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

88,668,352

j

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.1%

a

a

a

a

a

Money

Market

Funds

0.1%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

18,445,000

18,445,000

Principal

Amount

*

Repurchase

Agreements

0.0%

†

k

Joint

Repurchase

Agreement,

BNP

Paribas

SA,

0%,

4/01/21

(Maturity

Value

$3,965,473)

Collateralized

by

U.S.

Government

Bond,

6%,

2/15/26;

U.S.

Government

Bonds,

Strips,

11/15/22

-

11/15/25;

U.S.

Treasury

Notes,

0.125%

-

1.875%,

2/28/22

-

2/28/23;

and

U.S.

Treasury

Bill,

Discount

Note,

7/20/21

(valued

at

$4,044,782)

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

3,965,473

3,965,473

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$22,410,473)

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

22,410,473

Total

Short

Term

Investments

(Cost

$111,078,825

)

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

111,078,825

a

Total

Investments

(Cost

$6,045,746,768)

100.2%

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

$20,475,912,045

Other

Assets,

less

Liabilities

(0.2)%

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

(47,122,080)

Net

Assets

100.0%

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

$20,428,789,965

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

65

See

Abbreviations

on

page

138

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

14

regarding

fair

value

measurements.

c

See

Note

9

regarding

restricted

securities.

d

See

Note

11

regarding

holdings

of

5%

voting

securities.

e

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(d).

f

A

portion

or

all

of

the

security

is

on

loan

at

March

31,

2021.

See

Note

1(h).

g

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,

2021,

the

aggregate

value

of

these

securities

was

$251,098,369,

representing

1.2%

of

net

assets.

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

j

See

Note

1(h)

regarding

securities

on

loan.

k

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

Year

Ended

September

30,

2018

a

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$2.08

$2.30

$2.32

$2.31

Income

from

investment

operations

b

:

Net

investment

income

(loss)

c

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

0.04

0.08

0.08

(0.04)

Net

realized

and

unrealized

gains

(losses)

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

0.38

(0.18)

0.02

0.05

Total

from

investment

operations

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

0.42

(0.10)

0.10

0.01

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.12)

(0.12)

—

Net

asset

value,

end

of

period

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

$2.44

$2.08

$2.30

$2.32

Total

return

d

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

20.38%

(4.48)%

4.40%

0.43%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

0.73%

0.71%

0.72%

0.71%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.73%

g

0.70%

0.72%

g

0.71%

g

Net

investment

income

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

3.56%

3.64%

3.92%

3.89%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$12,896,280

$10,072,437

$7,427,468

$107,057

Portfolio

turnover

rate

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

35.73%

69.13%

43.63%

49.95%

a

For

the

period

September

10,

2018

(effective

date)

to

September

30,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

67

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.08

$2.30

$2.32

$2.39

$2.25

$2.10

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.04

0.08

0.09

0.09

0.10

0.10

Net

realized

and

unrealized

gains

(losses)

0.38

(0.18)

0.01

(0.04)

0.16

0.17

Total

from

investment

operations

........

0.42

(0.10)

0.10

0.05

0.26

0.27

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.12)

(0.12)

(0.12)

(0.12)

(0.12)

Net

asset

value,

end

of

period

..........

$2.44

$2.08

$2.30

$2.32

$2.39

$2.25

Total

return

c

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

20.45%

(4.39)%

4.50%

2.18%

11.86%

13.31%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.63%

0.61%

0.62%

0.61%

0.62%

0.61%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.63%

f

0.60%

0.62%

f

0.61%

f

0.61%

0.61%

f

Net

investment

income

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

3.66%

3.74%

4.02%

3.99%

4.22%

4.57%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$36,162,876

$32,693,224

$39,625,649

$42,929,573

$46,505,632

$45,515,127

Portfolio

turnover

rate

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

35.73%

69.13%

43.63%

49.95%

34.12%

61.26%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.12

$2.34

$2.35

$2.42

$2.27

$2.13

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.04

0.07

0.08

0.08

0.09

0.09

Net

realized

and

unrealized

gains

(losses)

0.37

(0.18)

0.02

(0.04)

0.17

0.16

Total

from

investment

operations

........

0.41

(0.11)

0.10

0.04

0.26

0.25

Less

distributions

from:

Net

investment

income

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

(0.05)

(0.11)

(0.11)

(0.11)

(0.11)

(0.11)

Net

asset

value,

end

of

period

..........

$2.48

$2.12

$2.34

$2.35

$2.42

$2.27

Total

return

c

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

19.76%

(4.80)%

4.35%

1.61%

11.63%

12.07%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.13%

1.11%

1.12%

1.11%

1.12%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.13%

f

1.10%

1.12%

f

1.11%

f

1.11%

1.11%

f

Net

investment

income

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

3.16%

3.24%

3.52%

3.49%

3.72%

4.07%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$9,651,831

$9,339,238

$13,488,627

$19,895,441

$23,036,875

$23,841,466

Portfolio

turnover

rate

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

35.73%

69.13%

43.63%

49.95%

34.12%

61.26%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

69

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.04

$2.26

$2.28

$2.35

$2.21

$2.07

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.04

0.07

0.08

0.08

0.09

0.09

Net

realized

and

unrealized

gains

(losses)

0.36

(0.18)

0.01

(0.04)

0.16

0.16

Total

from

investment

operations

........

0.40

(0.11)

0.09

0.04

0.25

0.25

Less

distributions

from:

Net

investment

income

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

(0.05)

(0.11)

(0.11)

(0.11)

(0.11)

(0.11)

Net

asset

value,

end

of

period

..........

$2.39

$2.04

$2.26

$2.28

$2.35

$2.21

Total

return

c

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

20.14%

(4.82)%

4.20%

1.86%

11.67%

12.62%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.98%

0.96%

0.97%

0.96%

0.97%

0.96%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.98%

f

0.95%

0.97%

f

0.96%

f

0.96%

0.96%

f

Net

investment

income

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

3.31%

3.40%

3.67%

3.64%

3.87%

4.22%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$246,501

$221,584

$265,531

$296,098

$361,603

$396,107

Portfolio

turnover

rate

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

35.73%

69.13%

43.63%

49.95%

34.12%

61.26%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.07

$2.29

$2.30

$2.37

$2.23

$2.09

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.04

0.09

0.10

0.10

0.11

0.10

Net

realized

and

unrealized

gains

(losses)

0.38

(0.19)

0.01

(0.05)

0.15

0.16

Total

from

investment

operations

........

0.42

(0.10)

0.11

0.05

0.26

0.26

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.12)

(0.12)

(0.12)

(0.12)

(0.12)

Net

asset

value,

end

of

period

..........

$2.43

$2.07

$2.29

$2.30

$2.37

$2.23

Total

return

c

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

20.65%

(4.23)%

5.17%

2.40%

12.15%

13.15%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.41%

0.40%

0.41%

0.39%

0.39%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.41%

f

0.39%

0.40%

0.39%

f

0.38%

0.38%

f

Net

investment

income

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

3.73%

3.96%

4.24%

4.21%

4.45%

4.80%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$714,161

$1,626,735

$1,902,027

$2,062,334

$1,815,977

$1,737,577

Portfolio

turnover

rate

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

35.73%

69.13%

43.63%

49.95%

34.12%

61.26%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

71

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.07

$2.28

$2.30

$2.37

$2.23

$2.09

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.04

0.08

0.09

0.10

0.10

0.10

Net

realized

and

unrealized

gains

(losses)

0.37

(0.17)

0.01

(0.05)

0.16

0.16

Total

from

investment

operations

........

0.41

(0.09)

0.10

0.05

0.26

0.26

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.12)

(0.12)

(0.12)

(0.12)

(0.12)

Net

asset

value,

end

of

period

..........

$2.42

$2.07

$2.28

$2.30

$2.37

$2.23

Total

return

c

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

20.13%

(3.86)%

4.65%

2.34%

12.09%

13.06%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.48%

0.46%

0.47%

0.46%

0.47%

0.46%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.48%

f

0.45%

0.47%

f

0.46%

f

0.46%

0.46%

f

Net

investment

income

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

3.81%

3.89%

4.17%

4.14%

4.37%

4.72%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$11,331,608

$9,712,076

$11,816,599

$11,328,761

$11,671,173

$8,143,479

Portfolio

turnover

rate

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

35.73%

69.13%

43.63%

49.95%

34.12%

61.26%

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

Statement

of

Investments

(unaudited),

March

31,

2021

Franklin

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

49.9%

Aerospace

&

Defense

1.2%

Lockheed

Martin

Corp.

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

United

States

1,500,000

$

554,250,000

Raytheon

Technologies

Corp.

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

United

States

3,959,550

305,954,429

860,204,429

Air

Freight

&

Logistics

0.4%

a

United

Parcel

Service,

Inc.,

B

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

United

States

1,660,000

282,183,400

Banks

5.4%

Bank

of

America

Corp.

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

United

States

25,750,000

996,267,500

Barclays

plc

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

United

Kingdom

120,000,000

307,265,865

Citigroup,

Inc.

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

United

States

5,000,000

363,750,000

JPMorgan

Chase

&

Co.

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

United

States

8,000,000

1,217,840,000

Truist

Financial

Corp.

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

United

States

9,000,000

524,880,000

US

Bancorp

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

United

States

8,000,000

442,480,000

3,852,483,365

Beverages

2.5%

Coca-Cola

Co.

(The)

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

United

States

18,000,000

948,780,000

a

PepsiCo,

Inc.

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

United

States

6,000,000

848,700,000

1,797,480,000

Biotechnology

0.9%

AbbVie,

Inc.

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

United

States

3,500,000

378,770,000

Amgen,

Inc.

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

United

States

1,000,000

248,810,000

627,580,000

Capital

Markets

0.2%

Morgan

Stanley

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

United

States

1,500,000

116,490,000

Chemicals

1.0%

Air

Products

and

Chemicals,

Inc.

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

United

States

1,150,000

323,541,000

BASF

SE

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

Germany

5,000,000

415,479,445

739,020,445

Communications

Equipment

0.9%

Cisco

Systems,

Inc.

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

United

States

13,000,000

672,230,000

Diversified

Telecommunication

Services

3.3%

AT&T,

Inc.

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

United

States

25,000,000

756,750,000

BCE,

Inc.

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

Canada

7,500,000

338,538,351

Verizon

Communications,

Inc.

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

United

States

22,000,000

1,279,300,000

2,374,588,351

Electric

Utilities

6.0%

American

Electric

Power

Co.,

Inc.

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

United

States

8,250,000

698,775,000

Duke

Energy

Corp.

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

United

States

10,000,000

965,300,000

Edison

International

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

United

States

11,000,000

644,600,000

Exelon

Corp.

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

United

States

7,000,000

306,180,000

FirstEnergy

Corp.

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

United

States

3,000,000

104,070,000

PPL

Corp.

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

United

States

6,000,000

173,040,000

Southern

Co.

(The)

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

United

States

19,000,000

1,181,040,000

Xcel

Energy,

Inc.

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

United

States

2,500,000

166,275,000

4,239,280,000

Energy

Equipment

&

Services

0.4%

Halliburton

Co.

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

United

States

4,000,000

85,840,000

b,c

Weatherford

International

plc

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

United

States

12,750,000

162,435,000

248,275,000

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

73

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Equity

Real

Estate

Investment

Trusts

(REITs)

0.1%

b

Host

Hotels

&

Resorts,

Inc.

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

United

States

3,500,000

$

58,975,000

Food

&

Staples

Retailing

0.2%

Walmart,

Inc.

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

United

States

1,000,000

135,830,000

Food

Products

0.6%

Nestle

SA

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

Switzerland

4,000,000

445,952,748

Health

Care

Providers

&

Services

0.9%

b,c

CHS/Community

Health

Systems,

Inc.

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

United

States

10,000,000

135,200,000

CVS

Health

Corp.

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

United

States

6,200,000

466,426,000

601,626,000

Health

Care

Technology

0.0%

†

b

Multiplan

Corp.

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

United

States

4,400,000

24,420,000

Household

Products

1.9%

Procter

&

Gamble

Co.

(The)

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

United

States

10,000,000

1,354,300,000

Industrial

Conglomerates

0.6%

Siemens

AG

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

Germany

2,500,000

410,743,941

Insurance

1.4%

Allianz

SE

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

Germany

500,000

127,166,722

AXA

SA

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

France

5,000,000

134,209,666

MetLife,

Inc.

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

United

States

10,000,000

607,900,000

Zurich

Insurance

Group

AG

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

Switzerland

300,000

127,708,991

996,985,379

IT

Services

0.8%

International

Business

Machines

Corp.

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

United

States

4,487,000

597,937,620

Metals

&

Mining

0.8%

d

Rio

Tinto

plc,

ADR

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

Australia

7,000,000

543,550,000

Multiline

Retail

0.0%

†

b

Belk,

Inc.

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

United

States

3,829

95,725

Multi-Utilities

3.1%

Ameren

Corp.

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

United

States

2,000,000

162,720,000

CMS

Energy

Corp.

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

United

States

2,000,000

122,440,000

Dominion

Energy,

Inc.

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

United

States

14,000,000

1,063,440,000

DTE

Energy

Co.

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

United

States

3,750,000

499,275,000

Sempra

Energy

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

United

States

2,399,449

318,118,949

2,165,993,949

Oil,

Gas

&

Consumable

Fuels

6.3%

BP

plc,

ADR

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

United

Kingdom

6,000,000

146,100,000

b,c

Chesapeake

Energy

Corp.

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

United

States

12,601,888

546,795,920

Chevron

Corp.

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

United

States

15,000,000

1,571,850,001

Exxon

Mobil

Corp.

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

United

States

25,000,000

1,395,750,000

d

Royal

Dutch

Shell

plc,

ADR,

A

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

Netherlands

6,000,000

235,260,000

TOTAL

SE,

ADR

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

France

12,000,000

558,480,000

Valero

Energy

Corp.

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

United

States

500,000

35,800,000

4,490,035,921

Personal

Products

0.8%

Unilever

plc

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

United

Kingdom

10,000,000

557,917,148

Pharmaceuticals

6.8%

Bayer

AG

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

Germany

2,000,000

126,735,126

Bristol-Myers

Squibb

Co.

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

United

States

15,000,000

946,950,000

Johnson

&

Johnson

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

United

States

5,500,000

903,925,000

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Pharmaceuticals

(continued)

e

Merck

&

Co.,

Inc.

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

United

States

16,500,000

$

1,271,985,000

Novartis

AG

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

Switzerland

2,000,000

170,979,523

Pfizer,

Inc.

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

United

States

15,500,000

561,565,000

Roche

Holding

AG

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

Switzerland

1,500,000

485,966,522

Sanofi

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

France

3,664,851

362,364,775

4,830,470,946

Road

&

Rail

0.6%

Union

Pacific

Corp.

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

United

States

1,835,000

404,452,350

Semiconductors

&

Semiconductor

Equipment

0.9%

Broadcom,

Inc.

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

United

States

541,500

251,071,890

Intel

Corp.

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

United

States

6,282,800

402,099,200

653,171,090

Specialty

Retail

0.4%

Home

Depot,

Inc.

(The)

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

United

States

1,000,000

305,250,000

Tobacco

1.4%

Altria

Group,

Inc.

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

United

States

3,000,000

153,480,000

British

American

Tobacco

plc

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

United

Kingdom

3,000,000

114,014,864

a

Philip

Morris

International,

Inc.

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

United

States

8,000,000

709,920,000

977,414,864

Wireless

Telecommunication

Services

0.1%

Vodafone

Group

plc

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

United

Kingdom

50,000,000

91,165,582

Total

Common

Stocks

(Cost

$30,925,878,901)

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

35,456,103,253

f

Equity-Linked

Securities

19.8%

Aerospace

&

Defense

1.4%

g

BNP

Paribas

Issuance

BV

into

Raytheon

Technologies

Corp.,

144A,

9%,

6/16/21

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

United

States

4,546,000

343,876,215

g

JPMorgan

Chase

Bank

NA

into

Raytheon

Technologies

Corp.,

144A,

9%,

3/18/22

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

United

States

3,345,000

260,166,514

g

JPMorgan

Chase

Bank

NA

into

Raytheon

Technologies

Corp.,

144A,

10%,

1/11/22

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

United

States

2,120,000

163,871,979

g

Morgan

Stanley

Finance

LLC

into

General

Dynamics

Corp.,

Senior

Note,

144A,

8%,

5/24/21

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

United

States

1,450,000

232,967,223

1,000,881,931

Air

Freight

&

Logistics

0.3%

g

Royal

Bank

of

Canada

into

United

Parcel

Service,

Inc.,

144A,

8.5%,

3/08/22

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

United

States

1,355,000

223,260,048

Airlines

0.1%

g

Wells

Fargo

Bank

NA

into

Delta

Air

Lines,

Inc.,

144A,

10%,

4/12/21

United

States

2,000,000

98,197,517

Automobiles

1.2%

g

Barclays

Bank

plc

into

General

Motors

Co.,

144A,

10%,

12/08/21

.

United

States

5,735,000

288,016,265

g

Credit

Suisse

AG

into

General

Motors

Co.,

144A,

10%,

12/17/21

..

United

States

5,678,000

284,969,303

g

Credit

Suisse

AG

into

General

Motors

Co.,

144A,

12%,

2/08/22

...

United

States

4,820,000

289,344,074

862,329,642

Banks

0.4%

g,h

BNP

Paribas

SA

into

Bank

of

America

Corp.,

144A,

9%,

4/13/22

..

United

States

7,200,000

281,021,247

Biotechnology

0.7%

g

Merrill

Lynch

International

&

Co.

CV

into

Gilead

Sciences,

Inc.,

144A,

10%,

1/25/22

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

United

States

3,725,000

244,766,710

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

75

a

a

Country

Shares

a

Value

a

a

a

a

a

a

f

Equity-Linked

Securities

(continued)

Biotechnology

(continued)

g

Societe

Generale

SA

into

AbbVie,

Inc.,

144A,

10%,

12/10/21

.....

United

States

2,345,000

$

252,337,584

497,104,294

Capital

Markets

1.0%

g

Barclays

Bank

plc

into

Morgan

Stanley,

144A,

8%,

8/20/21

......

United

States

5,148,000

311,965,881

g,h

Royal

Bank

of

Canada

into

SPDR

Gold

Trust,

144A,

10%,

4/08/22

.

United

States

8,910,000

176,529,064

g

UBS

AG

into

Morgan

Stanley,

Senior

Note,

144A,

8.5%,

2/11/22

..

United

States

2,345,000

178,834,487

667,329,432

Chemicals

0.2%

g

National

Bank

of

Canada

into

Air

Products

and

Chemicals,

Inc.,

144A,

8.5%,

4/13/22

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

United

States

590,000

168,750,427

Communications

Equipment

0.6%

g

Credit

Suisse

AG

into

Cisco

Systems,

Inc.,

Senior

Note,

144A,

10%,

6/01/21

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

United

States

5,085,000

247,258,268

g

Royal

Bank

of

Canada

into

Cisco

Systems,

Inc.,

144A,

8.5%,

1/25/22

United

States

3,175,000

156,933,028

404,191,296

Containers

&

Packaging

0.4%

g

National

Bank

of

Canada

into

International

Paper

Co.,

Senior

Note,

144A,

9.5%,

12/06/21

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

United

States

5,000,000

262,129,742

Energy

Equipment

&

Services

1.0%

g

JPMorgan

Chase

Bank

NA

into

Baker

Hughes

Co.,

144A,

12%,

2/15/22

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

United

States

9,836,000

225,563,866

g

Societe

Generale

SA

into

Schlumberger

NV,

144A,

2.555%,

2/10/22

United

States

8,975,000

230,161,861

g

UBS

AG

into

Halliburton

Co.,

Senior

Note,

144A,

12%,

2/25/22

...

United

States

10,300,000

220,308,687

676,034,414

Health

Care

Providers

&

Services

1.1%

g

JPMorgan

Chase

Bank

NA

into

CVS

Health

Corp.,

144A,

9%,

2/22/22

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

United

States

2,950,000

219,843,593

g

Morgan

Stanley

Finance

LLC

into

CVS

Health

Corp.,

Senior

Note,

144A,

8%,

5/25/21

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

United

States

3,732,000

272,194,972

g

Royal

Bank

of

Canada

into

CVS

Health

Corp.,

144A,

7.5%,

9/03/21

United

States

3,933,000

273,568,645

765,607,210

Industrial

Conglomerates

0.4%

g

Societe

Generale

SA

into

Honeywell

International,

Inc.,

144A,

8%,

2/01/22

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

United

States

1,271,000

280,213,912

Insurance

1.1%

g

Barclays

Bank

plc

into

MetLife,

Inc.,

144A,

9.5%,

3/09/22

.......

United

States

4,251,700

259,704,040

g

BNP

Paribas

Issuance

BV

into

MetLife,

Inc.,

144A,

9%,

9/07/21

...

United

States

6,597,000

305,721,142

g

Royal

Bank

of

Canada

into

MetLife,

Inc.,

Senior

Note,

144A,

9.5%,

12/21/21

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

United

States

4,545,000

243,389,967

808,815,149

Internet

&

Direct

Marketing

Retail

0.5%

g

Citigroup

Global

Markets

Holdings,

Inc.

into

Amazon.com,

Inc.,

Senior

Note,

144A,

9.54%,

12/02/21

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

United

States

113,000

358,829,915

IT

Services

0.3%

g

Barclays

Bank

plc

into

Fidelity

National

Information

Services,

Inc.,

144A,

7.5%,

6/02/21

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

United

States

1,495,000

211,756,117

Machinery

0.8%

g

Goldman

Sachs

International

Bank

into

Cummins,

Inc.,

Senior

Note,

144A,

9%,

1/28/22

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

United

States

920,000

222,015,949

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

a

a

Country

Shares

a

Value

a

a

a

a

a

a

f

Equity-Linked

Securities

(continued)

Machinery

(continued)

g

Royal

Bank

of

Canada

into

Interpump

Group

SpA

,

144A,

9.5%,

3/18/22

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

Italy

2,852,000

$

156,303,822

g

UBS

AG

into

Caterpillar,

Inc.,

144A,

9.5%,

4/29/21

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

United

States

1,428,600

196,559,160

574,878,931

Media

0.8%

g

Barclays

Bank

plc

into

Comcast

Corp.,

Senior

Note,

144A,

9%,

4/28/21

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

United

States

6,400,000

283,535,313

g

Merrill

Lynch

International

&

Co.

CV

into

Comcast

Corp.,

144A,

7%,

8/09/21

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

United

States

5,600,000

270,063,531

553,598,844

Multiline

Retail

0.7%

g

Citigroup

Global

Markets

Holdings,

Inc.

into

Target

Corp.,

Senior

Note,

144A,

9%,

3/09/22

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

United

States

1,386,000

279,291,816

g

Societe

Generale

SA

into

Target

Corp.,

144A,

8%,

12/20/21

......

United

States

1,165,000

220,237,790

499,529,606

Pharmaceuticals

1.1%

g

Credit

Suisse

AG

into

Pfizer,

Inc.,

Senior

Note,

144A,

11%,

7/20/21

United

States

6,250,000

240,968,012

g

Merrill

Lynch

International

&

Co.

CV

into

Pfizer,

Inc.,

144A,

8%,

8/17/21

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

United

States

7,000,000

257,293,945

g

National

Bank

of

Canada

into

Bristol-Myers

Squibb

Co.,

Senior

Note,

144A,

8.5%,

2/16/22

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

United

States

3,984,000

257,577,559

755,839,516

Road

&

Rail

0.3%

g

Goldman

Sachs

International

Bank

into

Union

Pacific

Corp.,

Senior

Note,

144A,

8%,

2/09/22

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

United

States

1,085,000

239,652,894

Semiconductors

&

Semiconductor

Equipment

3.1%

g

BNP

Paribas

Issuance

BV

into

Texas

Instruments,

Inc.,

144A,

8.5%,

6/01/21

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

United

States

1,439,000

199,821,206

g

Citigroup

Global

Markets

Holdings,

Inc.

into

Intel

Corp.,

144A,

10%,

4/06/22

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

United

States

3,857,000

252,572,581

g

Credit

Suisse

AG

into

Broadcom,

Inc.,

144A,

10%,

4/14/21

......

United

States

1,275,000

431,557,301

g

Credit

Suisse

AG

into

Texas

Instruments,

Inc.,

144A,

8%,

8/13/21

.

United

States

2,239,000

334,476,051

g

Goldman

Sachs

International

Bank

into

Texas

Instruments,

Inc.,

Senior

Note,

144A,

9%,

1/26/22

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

United

States

1,593,000

280,987,020

g

Merrill

Lynch

International

&

Co.

CV

into

Intel

Corp.,

144A,

8.5%,

12/08/21

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

United

States

6,167,000

320,195,250

g

Royal

Bank

of

Canada

into

Analog

Devices,

Inc.,

Senior

Note,

144A,

8%,

9/15/21

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

United

States

1,718,000

231,305,372

g

Royal

Bank

of

Canada

into

Analog

Devices,

Inc.,

144A,

8.5%,

9/10/21

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

United

States

1,240,000

168,194,790

2,219,109,571

Software

2.0%

g

Citigroup

Global

Markets

Holdings,

Inc.

into

Microsoft

Corp.,

144A,

8%,

4/12/21

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

United

States

2,200,000

394,690,528

g

Merrill

Lynch

International

&

Co.

CV

into

Oracle

Corp.,

144A,

8%,

11/08/21

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

United

States

4,500,000

294,658,915

g

Societe

Generale

SA

into

Microsoft

Corp.,

144A,

8%,

8/24/21

....

United

States

1,240,000

286,006,925

g

Societe

Generale

SA

into

Oracle

Corp.,

144A,

8%,

8/05/21

......

United

States

3,390,000

208,458,008

g

UBS

AG

into

Oracle

Corp.,

144A,

9%,

4/29/21

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

United

States

4,303,900

258,607,621

1,442,421,997

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

77

a

a

Country

Shares

a

Value

a

a

a

a

a

a

f

Equity-Linked

Securities

(continued)

Technology

Hardware,

Storage

&

Peripherals

0.3%

g

BNP

Paribas

Issuance

BV

into

Apple,

Inc.,

144A,

10%,

12/22/21

..

United

States

1,630,000

$

202,814,642

Total

Equity-Linked

Securities

(Cost

$12,776,897,117)

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

14,054,298,294

Convertible

Preferred

Stocks

3.5%

Banks

0.4%

Bank

of

America

Corp.,

7.25%,

L

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

United

States

200,000

279,600,000

Capital

Markets

0.1%

KKR

&

Co.,

Inc.,

6%,

C

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

United

States

1,350,000

89,977,500

Chemicals

0.0%

†

International

Flavors

&

Fragrances,

Inc.,

6%

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

United

States

500,000

24,520,000

Electric

Utilities

1.5%

American

Electric

Power

Co.,

Inc.,

6.125%

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

United

States

1,000,000

48,260,000

American

Electric

Power

Co.,

Inc.,

6.125%

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

United

States

2,700,000

131,922,000

NextEra

Energy,

Inc.,

5.279%

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

United

States

5,250,000

260,032,500

NextEra

Energy,

Inc.,

6.219%

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

United

States

7,050,000

349,680,000

Southern

Co.

(The),

6.75%,

2019

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

United

States

5,900,000

300,487,000

1,090,381,500

Health

Care

Equipment

&

Supplies

0.1%

Danaher

Corp.,

5%,

B

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

United

States

50,000

64,760,000

Machinery

0.1%

Fortive

Corp.,

5%,

A

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

United

States

95,000

94,578,200

Multi-Utilities

0.7%

Dominion

Energy,

Inc.,

7.25%,

A

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

United

States

2,450,000

242,158,000

DTE

Energy

Co.,

6.25%

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

United

States

2,500,000

124,225,000

Sempra

Energy,

6.75%,

B

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

United

States

839,000

87,809,740

454,192,740

Semiconductors

&

Semiconductor

Equipment

0.5%

Broadcom,

Inc.,

8%,

A

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

United

States

230,000

339,132,700

Thrifts

&

Mortgage

Finance

0.1%

b

FNMA,

5.375%

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

United

States

4,250

79,688,392

b

Total

Convertible

Preferred

Stocks

(Cost

$2,397,870,795)

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

2,516,831,032

Preferred

Stocks

0.1%

Banks

0.0%

†

JPMorgan

Chase

&

Co.,

6%,

EE

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

United

States

59,509

1,635,307

Thrifts

&

Mortgage

Finance

0.1%

b,d

FHLMC,

8.375%,

Z

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

United

States

6,000,000

30,240,000

b

FNMA,

8.25%,

S

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

United

States

4,000,000

22,200,000

52,440,000

Total

Preferred

Stocks

(Cost

$239,626,726)

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

54,075,307

Warrants

Warrants

0.4%

Oil,

Gas

&

Consumable

Fuels

0.4%

b,c

Chesapeake

Energy

Corp.,

2/09/26

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

United

States

13,573,087

263,512,738

263,512,738

Total

Warrants

(Cost

$717,051,484)

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

263,512,738

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Convertible

Bonds

0.2%

Airlines

0.1%

Southwest

Airlines

Co.

,

Senior

Note

,

1.25

%

,

5/01/25

...........

United

States

20,000,000

$

34,437,500

Media

0.1%

DISH

Network

Corp.

,

Senior

Note

,

2.375

%

,

3/15/24

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

United

States

85,000,000

82,025,000

Total

Convertible

Bonds

(Cost

$98,576,161)

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

116,462,500

Corporate

Bonds

23.0%

Aerospace

&

Defense

0.1%

Raytheon

Technologies

Corp.

,

Senior

Note

,

3.125

%

,

5/04/27

.....

United

States

40,000,000

43,040,682

Airlines

0.2%

g

American

Airlines

Group,

Inc.

,

Senior

Note

,

144A,

5

%

,

6/01/22

...

United

States

28,471,000

28,008,346

g

American

Airlines

Inc

/

AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note,

144A,

5.5%,

4/20/26

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

United

States

50,000,000

52,097,000

Senior

Secured

Note,

144A,

5.75%,

4/20/29

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

United

States

50,000,000

53,245,000

133,350,346

Automobiles

0.5%

Ford

Motor

Co.

,

Senior

Note,

9%,

4/22/25

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

United

States

50,000,000

60,620,000

Senior

Note,

4.346%,

12/08/26

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

United

States

120,000,000

126,622,800

General

Motors

Co.

,

Senior

Bond

,

5.15

%

,

4/01/38

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

United

States

150,000,000

172,057,829

359,300,629

Banks

2.4%

Bank

of

America

Corp.

,

i

AA,

Junior

Sub.

Bond,

6.1%

to

3/17/25,

FRN

thereafter,

Perpetual

United

States

70,000,000

77,748,650

i

X,

Junior

Sub.

Bond,

6.25%

to

9/05/24,

FRN

thereafter,

Perpetual

United

States

55,000,000

60,892,882

Senior

Bond,

3.419%

to

12/20/27,

FRN

thereafter,

12/20/28

...

United

States

135,000,000

145,061,029

Senior

Note,

3.004%

to

12/20/22,

FRN

thereafter,

12/20/23

....

United

States

40,000,000

41,615,728

Barclays

plc

,

Senior

Note,

4.61%

to

2/15/22,

FRN

thereafter,

2/15/23

.......

United

Kingdom

40,000,000

41,334,482

Senior

Note,

3.65%,

3/16/25

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

United

Kingdom

50,000,000

53,834,205

Senior

Note,

3.932%

to

5/07/24,

FRN

thereafter,

5/07/25

......

United

Kingdom

50,000,000

53,991,798

Senior

Note,

4.375%,

1/12/26

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

United

Kingdom

125,000,000

139,451,046

Citigroup,

Inc.

,

i

Junior

Sub.

Bond,

5.95%

to

1/30/23,

FRN

thereafter,

Perpetual

.

United

States

135,000,000

141,681,577

i

D,

Junior

Sub.

Bond,

5.35%

to

5/15/23,

FRN

thereafter,

Perpetual

United

States

100,000,000

103,125,000

i

M,

Junior

Sub.

Bond,

6.3%

to

5/15/24,

FRN

thereafter,

Perpetual

United

States

115,000,000

122,453,150

Sub.

Bond,

4.125%,

7/25/28

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

United

States

130,000,000

143,952,871

i

JPMorgan

Chase

&

Co.

,

j

I,

Junior

Sub.

Bond,

FRN,

3.682%,

(3-month

USD

LIBOR

+

3.47%),

Perpetual

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

United

States

115,959,000

116,021,336

Q,

Junior

Sub.

Bond,

5.15%

to

5/01/23,

FRN

thereafter,

Perpetual

United

States

60,700,000

62,812,709

R,

Junior

Sub.

Bond,

6%

to

8/01/23,

FRN

thereafter,

Perpetual

.

United

States

55,000,000

57,846,631

S,

Junior

Sub.

Bond,

6.75%

to

2/01/24,

FRN

thereafter,

Perpetual

United

States

65,000,000

71,193,421

j

V,

Junior

Sub.

Bond,

FRN,

3.557%,

(3-month

USD

LIBOR

+

3.32%),

Perpetual

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

United

States

108,100,000

107,748,675

X,

Junior

Sub.

Bond,

6.1%

to

10/01/24,

FRN

thereafter,

Perpetual

United

States

70,000,000

75,519,156

i

Wells

Fargo

&

Co.

,

S

,

Junior

Sub.

Bond

,

5.9%

to

6/15/24,

FRN

thereafter

,

Perpetual

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

United

States

70,000,000

74,645,240

1,690,929,586

Beverages

0.0%

†

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

4

%

,

4/13/28

Belgium

25,000,000

27,878,510

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

79

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Biotechnology

0.2%

AbbVie,

Inc.

,

Senior

Note,

3.8%,

3/15/25

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

United

States

100,000,000

$

109,329,829

Senior

Note,

3.2%,

5/14/26

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

United

States

25,000,000

27,026,204

136,356,033

Chemicals

0.1%

g

Olin

Corp.

,

Senior

Note

,

144A,

9.5

%

,

6/01/25

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

United

States

40,000,000

49,440,000

Communications

Equipment

0.1%

g

CommScope

,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

7/01/28

.........

United

States

40,000,000

42,536,000

Construction

Materials

0.0%

†

g

Cemex

SAB

de

CV

,

Senior

Secured

Bond

,

144A,

5.7

%

,

1/11/25

...

Mexico

19,800,000

20,249,955

Consumer

Finance

0.9%

Capital

One

Financial

Corp.

,

Sub.

Note,

4.2%,

10/29/25

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

United

States

113,000,000

125,200,617

Sub.

Note,

3.75%,

7/28/26

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

United

States

100,200,000

108,941,851

Ford

Motor

Credit

Co.

LLC

,

Senior

Note,

5.125%,

6/16/25

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

United

States

60,000,000

64,875,000

Senior

Note,

4.134%,

8/04/25

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

United

States

149,650,000

156,803,270

Senior

Note,

5.113%,

5/03/29

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

United

States

100,000,000

107,470,000

General

Motors

Financial

Co.,

Inc.

,

Senior

Note

,

4.15

%

,

6/19/23

..

United

States

75,000,000

80,490,983

643,781,721

Containers

&

Packaging

0.4%

g

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note,

144A,

7.25%,

4/15/25

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

United

States

200,995,000

201,246,244

Senior

Secured

Note,

144A,

5.5%,

4/15/24

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

United

States

105,000,000

106,575,000

307,821,244

Diversified

Financial

Services

0.2%

g

MPH

Acquisition

Holdings

LLC

,

Senior

Note

,

144A,

5.75

%

,

11/01/28

United

States

123,000,000

120,078,750

Diversified

Telecommunication

Services

0.2%

AT&T,

Inc.

,

Senior

Bond

,

4.125

%

,

2/17/26

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

United

States

75,000,000

84,060,162

g

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond,

144A,

5.5%,

5/01/26

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

United

States

40,000,000

41,308,200

Senior

Bond,

144A,

5.125%,

5/01/27

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

United

States

30,000,000

31,759,500

157,127,862

Energy

Equipment

&

Services

1.1%

g

Nabors

Industries

Ltd.

,

Senior

Note

,

144A,

7.25

%

,

1/15/26

......

United

States

16,000,000

13,310,000

g

Nabors

Industries,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/01/25

.......

United

States

28,000,000

26,460,000

g

Weatherford

International

Ltd.

,

144A,

8.75%,

9/01/24

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

United

States

170,000,000

178,155,750

Senior

Note,

144A,

11%,

12/01/24

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

United

States

584,000,000

561,735,000

779,660,750

Entertainment

0.3%

Netflix,

Inc.

,

Senior

Bond,

4.375%,

11/15/26

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

United

States

100,000,000

111,850,000

Senior

Bond,

4.875%,

4/15/28

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

United

States

69,300,000

78,508,584

Senior

Bond,

5.875%,

11/15/28

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

United

States

50,000,000

60,540,920

250,899,504

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Equity

Real

Estate

Investment

Trusts

(REITs)

0.2%

American

Tower

Corp.

,

Senior

Bond

,

3.375

%

,

10/15/26

.........

United

States

30,000,000

$

32,466,993

Equinix

,

Inc.

,

Senior

Bond

,

5.375

%

,

5/15/27

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

United

States

60,000,000

64,536,303

g

Iron

Mountain,

Inc.

,

Senior

Note

,

144A,

4.875

%

,

9/15/27

........

United

States

73,250,000

75,081,250

172,084,546

Food

Products

0.1%

Kraft

Heinz

Foods

Co.

,

Senior

Bond,

4.625%,

1/30/29

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

United

States

24,400,000

27,411,455

Senior

Note,

3.95%,

7/15/25

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

United

States

25,041,000

27,609,311

g

Post

Holdings,

Inc.

,

Senior

Bond

,

144A,

5.625

%

,

1/15/28

.......

United

States

40,000,000

42,164,200

97,184,966

Health

Care

Providers

&

Services

7.1%

g

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

8.125%,

6/30/24

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

United

States

735,000,000

772,889,250

Secured

Note,

144A,

6.875%,

4/15/29

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

United

States

755,000,000

791,330,600

Senior

Note,

144A,

6.875%,

4/01/28

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

United

States

570,000,000

520,606,650

Senior

Secured

Note,

144A,

6.625%,

2/15/25

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

United

States

133,300,000

140,965,416

Senior

Secured

Note,

144A,

8%,

3/15/26

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

United

States

335,000,000

362,570,500

Senior

Secured

Note,

144A,

5.625%,

3/15/27

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

United

States

250,000,000

262,187,500

Senior

Secured

Note,

144A,

8%,

12/15/27

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

United

States

380,000,000

417,253,300

Senior

Secured

Note,

144A,

6%,

1/15/29

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

United

States

250,000,000

264,687,500

Cigna

Corp.

,

Senior

Note

,

3.75

%

,

7/15/23

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

United

States

14,844,000

15,879,949

CVS

Health

Corp.

,

Senior

Bond,

4.3%,

3/25/28

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

United

States

125,000,000

142,031,601

Senior

Bond,

5.05%,

3/25/48

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

United

States

50,000,000

61,478,800

HCA,

Inc.

,

Senior

Bond,

5.875%,

5/01/23

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

United

States

90,000,000

98,125,200

Senior

Bond,

5.625%,

9/01/28

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

United

States

80,000,000

92,142,000

Senior

Secured

Note,

5%,

3/15/24

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

United

States

114,800,000

127,785,724

Tenet

Healthcare

Corp.

,

Secured

Note,

5.125%,

5/01/25

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

United

States

120,000,000

121,836,000

Senior

Bond,

6.875%,

11/15/31

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

United

States

55,258,000

61,623,169

Senior

Note,

6.75%,

6/15/23

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

United

States

565,000,000

612,968,500

g

Senior

Note,

144A,

6.125%,

10/01/28

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

United

States

158,000,000

165,110,000

5,031,471,659

Health

Care

Technology

0.2%

g

Multiplan

Corp.

,

144A,

6

%

,

10/15/27

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

United

States

185,000,000

157,157,500

Hotels,

Restaurants

&

Leisure

0.7%

g

Caesars

Entertainment,

Inc.

,

Senior

Note,

144A,

8.125%,

7/01/27

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

United

States

35,000,000

38,641,750

Senior

Secured

Note,

144A,

6.25%,

7/01/25

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

United

States

30,000,000

32,018,100

g

Golden

Nugget,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

10/15/24

.......

United

States

38,500,000

38,978,170

g

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond,

144A,

5.5%,

3/01/25

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

United

States

164,500,000

173,999,875

Senior

Note,

144A,

4.25%,

5/30/23

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

United

States

84,000,000

86,152,920

Senior

Note,

144A,

5.25%,

5/15/27

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

United

States

96,827,000

101,511,490

471,302,305

Insurance

0.1%

Prudential

Financial,

Inc.

,

Junior

Sub.

Bond

,

5.7%

to

9/15/28,

FRN

thereafter

,

9/15/48

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

United

States

65,000,000

74,427,299

Machinery

0.1%

g

Vertical

US

Newco

,

Inc.

,

Senior

Secured

Note

,

144A,

5.25

%

,

7/15/27

Germany

43,000,000

45,096,250

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

81

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Media

1.9%

g

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note

,

144A,

7.75

%

,

4/15/28

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

United

States

20,000,000

$

19,817,500

g

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.

,

Senior

Secured

Note

,

144A,

5.375

%

,

8/15/26

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

United

States

152,000,000

109,630,000

DISH

DBS

Corp.

,

Senior

Note,

5.875%,

7/15/22

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

United

States

383,500,000

400,949,250

Senior

Note,

5%,

3/15/23

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

United

States

300,000,000

313,350,000

Senior

Note,

5.875%,

11/15/24

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

United

States

128,200,000

134,261,937

Senior

Note,

7.375%,

7/01/28

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

United

States

40,000,000

42,012,000

g

Univision

Communications,

Inc.

,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

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

United

States

217,220,000

220,342,538

Senior

Secured

Note,

144A,

9.5%,

5/01/25

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

United

States

55,000,000

60,500,000

Senior

Secured

Note,

144A,

6.625%,

6/01/27

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

United

States

30,000,000

32,094,000

1,332,957,225

Metals

&

Mining

0.3%

g

Cleveland-Cliffs,

Inc.

,

Senior

Secured

Note

,

144A,

6.75

%

,

3/15/26

.

United

States

50,000,000

54,437,500

g

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Bond,

144A,

4.375%,

4/01/31

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

Australia

35,000,000

35,678,300

Senior

Note,

144A,

5.125%,

5/15/24

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

Australia

60,540,000

65,730,699

Freeport-McMoRan,

Inc.

,

Senior

Bond,

5.25%,

9/01/29

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

United

States

25,000,000

27,380,250

Senior

Note,

3.875%,

3/15/23

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

United

States

62,636,000

65,350,018

248,576,767

Oil,

Gas

&

Consumable

Fuels

1.5%

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note,

7.625%,

1/15/22

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

United

States

62,263,000

62,326,197

Senior

Note,

7.75%,

4/15/23

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

United

States

121,585,000

121,129,664

g

Senior

Note,

144A,

11%,

4/15/25

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

United

States

261,500,000

275,226,135

g

Senior

Secured

Note,

144A,

9.25%,

7/15/24

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

United

States

111,402,000

121,428,180

HighPoint

Operating

Corp.

,

Senior

Bond,

7%,

10/15/22

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

United

States

130,783,000

76,313,842

Senior

Note,

8.75%,

6/15/25

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

United

States

175,845,000

102,869,325

Occidental

Petroleum

Corp.

,

Senior

Bond,

6.125%,

1/01/31

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

United

States

40,000,000

44,243,000

Senior

Note,

8%,

7/15/25

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

United

States

50,000,000

57,490,250

Senior

Note,

5.5%,

12/01/25

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

United

States

30,000,000

31,770,000

Senior

Note,

6.375%,

9/01/28

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

United

States

60,000,000

65,968,800

Senior

Note,

6.625%,

9/01/30

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

United

States

50,000,000

56,265,000

PBF

Holding

Co.

LLC

/

PBF

Finance

Corp.

,

Senior

Note,

6%,

2/15/28

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

United

States

37,000,000

27,403,125

g

Senior

Secured

Note,

144A,

9.25%,

5/15/25

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

United

States

20,000,000

20,447,500

1,062,881,018

Pharmaceuticals

1.6%

g

Bausch

Health

Americas,

Inc.

,

Senior

Note

,

144A,

9.25

%

,

4/01/26

.

United

States

137,000,000

151,974,100

g

Bausch

Health

Cos.,

Inc.

,

Senior

Bond,

144A,

6.125%,

4/15/25

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

United

States

122,400,000

125,606,880

Senior

Note,

144A,

9%,

12/15/25

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

United

States

105,000,000

114,276,225

Senior

Note,

144A,

5%,

2/15/29

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

United

States

50,000,000

49,750,000

Senior

Secured

Note,

144A,

5.5%,

11/01/25

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

United

States

55,000,000

56,560,900

g

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

4.25

%

,

12/15/25

...

Germany

65,000,000

72,396,370

g

Endo

Dac

/

Endo

Finance

LLC

/

Endo

Finco

,

Inc.

,

Secured

Note,

144A,

9.5%,

7/31/27

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

United

States

120,439,000

131,052,687

Senior

Note,

144A,

6%,

6/30/28

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

United

States

146,739,000

119,005,329

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Pharmaceuticals

(continued)

g

Endo

Finance

LLC

,

Senior

Note

,

144A,

5.75

%

,

1/15/22

.........

United

States

50,999,000

$

50,807,754

g

Endo

Luxembourg

Finance

Co.

I

SARL

/

Endo

US,

Inc.

,

Senior

Secured

Note

,

144A,

6.125

%

,

4/01/29

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

United

States

40,000,000

40,400,000

g

Par

Pharmaceutical,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

4/01/27

United

States

76,744,000

81,499,058

Utah

Acquisition

Sub,

Inc.

,

Senior

Note

,

3.95

%

,

6/15/26

.........

United

States

110,000,000

121,246,222

1,114,575,525

Road

&

Rail

0.1%

g

Ashtead

Capital,

Inc.

,

Senior

Note,

144A,

4.375%,

8/15/27

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

United

Kingdom

34,500,000

36,052,500

Senior

Note,

144A,

4%,

5/01/28

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

United

Kingdom

15,000,000

15,707,100

51,759,600

Semiconductors

&

Semiconductor

Equipment

0.1%

Microchip

Technology,

Inc.

,

Senior

Secured

Note

,

4.333

%

,

6/01/23

United

States

69,000,000

74,049,806

Tobacco

0.4%

BAT

Capital

Corp.

,

Senior

Note,

3.222%,

8/15/24

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

United

Kingdom

78,500,000

83,669,304

Senior

Note,

3.557%,

8/15/27

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

United

Kingdom

170,000,000

181,067,984

264,737,288

Trading

Companies

&

Distributors

0.2%

United

Rentals

North

America,

Inc.

,

Senior

Bond

,

4.875

%

,

1/15/28

United

States

93,000,000

98,079,660

g

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

6/15/25

...

United

States

30,000,000

32,844,750

130,924,410

Wireless

Telecommunication

Services

1.7%

Sprint

Communications,

Inc.

,

Senior

Note,

11.5%,

11/15/21

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

United

States

200,000,000

212,375,000

Senior

Note,

6%,

11/15/22

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

United

States

347,700,000

372,473,625

Sprint

Corp.

,

Senior

Note,

7.875%,

9/15/23

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

United

States

187,350,000

214,375,237

Senior

Note,

7.125%,

6/15/24

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

United

States

190,650,000

219,726,031

Senior

Note,

7.625%,

3/01/26

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

United

States

86,300,000

105,822,355

g

Sprint

Spectrum

Co.

LLC

/

Sprint

Spectrum

Co.

II

LLC

/

Sprint

Spectrum

Co.

III

LLC

,

Senior

Secured

Note

,

144A,

5.152

%

,

3/20/28

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

United

States

90,000,000

102,825,000

1,227,597,248

Total

Corporate

Bonds

(Cost

$15,162,117,922)

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

16,319,234,984

Units

k

Index-Linked

Notes

0.1%

Capital

Markets

0.1%

g,l

UBS

AG,

Senior

Note,

144A,

9.58%,

5/07/21

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

Switzerland

75,000

85,046,250

Total

Index-Linked

Notes

(Cost

$75,000,000)

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

85,046,250

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

83

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

j,m

Senior

Floating

Rate

Interests

0.0%

Specialty

Retail

0.0%

†

Belk,

Inc.,

First

Lien,

First-Out

Term

Loan

,

8.5

%

,

(

3-month

USD

LIBOR

+

7.5

%

),

7/31/25

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

United

States

4,913,316

$

4,925,599

Belk,

Inc.,

First

Lien,

Second-Out

Term

Loan

,

10

%

,

(

3-month

USD

LIBOR

+

10

%

),

7/31/25

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

United

States

28,947,642

18,815,967

23,741,566

a

a

a

a

a

a

Total

Senior

Floating

Rate

Interests

(Cost

$18,637,603)

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

23,741,566

U.S.

Government

and

Agency

Securities

0.8%

a

U.S.

Treasury

Bonds,

7.5%,

11/15/24

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

United

States

350,000,000

438,272,460

U.S.

Treasury

Notes,

1.125%,

2/15/31

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

United

States

100,000,000

94,492,188

Total

U.S.

Government

and

Agency

Securities

(Cost

$514,257,554)

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

532,764,648

Asset-Backed

Securities

0.1%

Airlines

0.1%

United

Airlines

Pass-Through

Trust

,

2020-1

,

A

,

5.875

%

,

10/15/27

.

United

States

53,670,375

59,621,250

Total

Asset-Backed

Securities

(Cost

$53,670,375)

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

59,621,250

Mortgage-Backed

Securities

0.5%

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

0.1%

FNMA,

30

Year,

4%,

8/01/49

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

United

States

52,481,859

57,432,131

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

0.4%

GNMA

II,

Single-family,

30

Year,

3%,

7/20/50

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

United

States

307,452,706

320,566,197

Total

Mortgage-Backed

Securities

(Cost

$381,667,462)

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

377,998,328

Shares

Escrows

and

Litigation

Trusts

0.1%

b,c,g

Chesapeake

Energy

Corp.,

Escrow

Account,

144A

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

United

States

50,000,000

53,093,750

Total

Escrows

and

Litigation

Trusts

(Cost

$50,000,000)

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

53,093,750

Total

Long

Term

Investments

(Cost

$63,411,252,100)

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

69,912,783,900

a

Short

Term

Investments

2.1%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

2.1%

n,o

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

1,470,000,970

1,470,000,970

Total

Money

Market

Funds

(Cost

$1,470,000,970)

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

1,470,000,970

p

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.0%

†

a

a

a

a

a

Money

Market

Funds

0.0%

†

n,o

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

14,660,000

14,660,000

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

See

Abbreviations

on

page

138

.

Short

Term

Investments

(continued)

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

0.0%

†

q

Joint

Repurchase

Agreement,

BNP

Paribas

SA,

0%,

4/01/21

(Maturity

Value

$1,489,980)

Collateralized

by

U.S.

Government

Bond,

6%,

2/15/26;

U.S.

Government

Bonds,

Strips,

11/15/22

-

11/15/25;

U.S.

Treasury

Notes,

0.125%

-

1.875%,

2/28/22

-

2/28/23;

and

U.S.

Treasury

Bill,

Discount

Note,

7/20/21

(valued

at

$1,519,780)

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

1,489,980

$

1,489,980

q

Joint

Repurchase

Agreement,

BofA

Securities,

Inc.,

0%,

4/01/21

(Maturity

Value

$14,611,963)

Collateralized

by

U.S.

Government

Note,

2%,

11/30/22

(valued

at

$14,904,215)

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

14,611,963

14,611,963

Total

Repurchase

Agreements

(Cost

$16,101,943)

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

16,101,943

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$30,761,943)

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

30,761,943

Total

Short

Term

Investments

(Cost

$1,500,762,913

)

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

1,500,762,913

a

Total

Investments

(Cost

$64,912,015,013)

100.6%

...............................

$71,413,546,813

Options

Written

(0.0)%

.......................................................

(1,310,000)

Other

Assets,

less

Liabilities

(0.6)%

...........................................

(408,979,411)

Net

Assets

100.0%

...........................................................

$71,003,257,402

Number

of

Contracts

Notional

Amount

#

Options

Written

(0.0)%

†

Calls

-

Exchange-Traded

Equity

Options

Merck

&

Co.,

Inc.,

May

Strike

Price

$82.50,

Expires

5/21/21

.....

10,000

96,886,712

(660,000)

(660,000)

Puts

-

Exchange-Traded

Equity

Options

Apple,

Inc.,

April

Strike

Price

$115.00,

Expires

4/16/21

..........

10,000

153,518,130

(650,000)

(650,000)

Total

Options

Written

(Premiums

received

$2,452,073)

...........................

$

(1,310,000)

#

Notional

amount

is

the

number

of

units

specified

in

the

contract,

and

can

include

currency

units,

bushels,

shares,

pounds,

barrels

or

other

units.

Currency

units

are

stated

in

U.S.

dollars

unless

otherwise

indicated.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

A

portion

or

all

of

the

security

has

been

segregated

as

collateral

for

open

written

options

contracts.

At

March

31,

2021,

the

aggregate

value

of

these

securities

pledged

amounted

to

$870,686,448,

representing

1.2%

of

net

assets.

b

Non-income

producing.

c

See

Note

11

regarding

holdings

of

5%

voting

securities.

d

A

portion

or

all

of

the

security

is

on

loan

at

March

31,

2021.

See

Note

1(h).

e

A

portion

or

all

of

the

security

is

held

in

connection

with

written

option

contracts

open

at

period

end.

f

See

Note

1(g)

regarding

equity-linked

securities.

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

85

g

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,

2021,

the

aggregate

value

of

these

securities

was

$22,403,136,265,

representing

31.6%

of

net

assets.

h

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(d).

i

Perpetual

security

with

no

stated

maturity

date.

j

The

coupon

rate

shown

represents

the

rate

at

period

end.

k

See

Note

1(f)

regarding

index-linked

notes.

l

Security

pays

variable

interest

based

on

the

distributions

of

the

strategy

index

and

proceeds

earned

from

related

equity

derivatives.

The

coupon

rate

shown

represents

the

combined

rate

at

period

end.

Cash

payment

at

maturity

or

upon

early

redemption

is

based

on

the

performance

of

the

strategy

index.

m

See

Note

1(i)

regarding

senior

floating

rate

interests.

n

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

o

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

p

See

Note

1(h)

regarding

securities

on

loan.

q

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

Year

Ended

September

30,

2018

a

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..............................

$6.09

$6.07

$5.86

$5.89

Income

from

investment

operations

b

:

Net

investment

income

c

......................................

0.03

0.10

0.14

0.01

Net

realized

and

unrealized

gains

(losses)

........................

(0.06)

0.08

0.25

(0.02)

Total

from

investment

operations

.................................

(0.03)

0.18

0.39

(0.01)

Less

distributions

from:

Net

investment

income

.......................................

(0.07)

(0.16)

(0.18)

(0.02)

Net

asset

value,

end

of

period

...................................

$5.99

$6.09

$6.07

$5.86

Total

return

d

................................................

(0.56)%

3.01%

6.70%

(0.23)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

...................

0.87%

0.89%

0.89%

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

f

...................

0.87%

g

0.88%

0.88%

0.86%

g

Net

investment

income

........................................

0.90%

1.58%

2.36%

2.40%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.................................

$1,108,243

$1,097,545

$336,646

$4,472

Portfolio

turnover

rate

.........................................

46.42%

65.54%

41.34%

44.67%

a

For

the

period

September

10,

2018

(effective

date)

to

September

30,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

87

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$6.09

$6.07

$5.85

$6.13

$6.35

$6.40

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.03

0.10

0.15

0.15

0.13

0.14

Net

realized

and

unrealized

gains

(losses)

(0.06)

0.09

0.25

(0.25)

(0.16)

0.01

Total

from

investment

operations

........

(0.03)

0.19

0.40

(0.10)

(0.03)

0.15

Less

distributions

from:

Net

investment

income

..............

(0.07)

(0.17)

(0.18)

(0.18)

(0.19)

(0.20)

Net

asset

value,

end

of

period

..........

$5.99

$6.09

$6.07

$5.85

$6.13

$6.35

Total

return

c

.......................

(0.52)%

3.09%

6.94%

(1.60)%

(0.45)%

2.35%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.77%

0.78%

0.79%

0.76%

0.79%

0.76%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.77%

f

0.77%

0.78%

0.76%

f

0.79%

f

0.76%

f

Net

investment

income

...............

1.01%

1.69%

2.46%

2.50%

2.17%

2.21%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,511,490

$2,661,888

$2,885,194

$3,099,373

$3,581,769

$4,235,819

Portfolio

turnover

rate

................

46.42%

65.54%

41.34%

44.67%

86.72%

92.18%

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.

88

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$6.04

$6.03

$5.81

$6.08

$6.30

$6.36

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.02

0.07

0.12

0.12

0.10

0.11

Net

realized

and

unrealized

gains

(losses)

(0.07)

0.08

0.25

(0.24)

(0.16)

—

c

Total

from

investment

operations

........

(0.05)

0.15

0.37

(0.12)

(0.06)

0.11

Less

distributions

from:

Net

investment

income

..............

(0.05)

(0.14)

(0.15)

(0.15)

(0.16)

(0.17)

Net

asset

value,

end

of

period

..........

$5.94

$6.04

$6.03

$5.81

$6.08

$6.30

Total

return

d

.......................

(0.77)%

2.43%

6.45%

(1.94)%

(0.96)%

1.70%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.27%

1.29%

1.29%

1.26%

1.29%

1.26%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.27%

g

1.28%

1.28%

1.26%

g

1.29%

g

1.26%

g

Net

investment

income

...............

0.50%

1.18%

1.96%

2.00%

1.67%

1.71%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$315,054

$354,483

$389,021

$571,525

$797,394

$1,034,410

Portfolio

turnover

rate

................

46.42%

65.54%

41.34%

44.67%

86.72%

92.18%

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

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

89

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$6.09

$6.07

$5.85

$6.12

$6.34

$6.40

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.02

0.08

0.13

0.13

0.11

0.12

Net

realized

and

unrealized

gains

(losses)

(0.06)

0.08

0.25

(0.24)

(0.16)

—

c

Total

from

investment

operations

........

(0.04)

0.16

0.38

(0.11)

(0.05)

0.12

Less

distributions

from:

Net

investment

income

..............

(0.06)

(0.14)

(0.16)

(0.16)

(0.17)

(0.18)

Net

asset

value,

end

of

period

..........

$5.99

$6.09

$6.07

$5.85

$6.12

$6.34

Total

return

d

.......................

(0.69)%

2.73%

6.58%

(1.78)%

(0.81)%

1.84%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.11%

1.13%

1.14%

1.11%

1.13%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.11%

g

1.12%

1.13%

1.11%

g

1.13%

g

1.11%

g

Net

investment

income

...............

0.67%

1.34%

2.11%

2.15%

1.83%

1.86%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$24,008

$27,746

$32,906

$31,144

$38,363

$59,785

Portfolio

turnover

rate

................

46.42%

65.54%

41.34%

44.67%

86.72%

92.18%

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

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$6.12

$6.10

$5.87

$6.15

$6.37

$6.42

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.04

0.12

0.16

0.17

0.15

0.16

Net

realized

and

unrealized

gains

(losses)

(0.07)

0.08

0.27

(0.25)

(0.16)

0.01

Total

from

investment

operations

........

(0.03)

0.20

0.43

(0.08)

(0.01)

0.17

Less

distributions

from:

Net

investment

income

..............

(0.08)

(0.18)

(0.20)

(0.20)

(0.21)

(0.22)

Net

asset

value,

end

of

period

..........

$6.01

$6.12

$6.10

$5.87

$6.15

$6.37

Total

return

c

.......................

(0.55)%

3.34%

7.39%

(1.33)%

(0.16)%

2.63%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.53%

0.54%

0.51%

0.49%

0.48%

0.48%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.52%

0.52%

0.50%

0.48%

0.48%

f

0.48%

f

Net

investment

income

...............

1.25%

1.96%

2.74%

2.78%

2.48%

2.49%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$323,835

$361,791

$573,957

$694,813

$446,174

$624,619

Portfolio

turnover

rate

................

46.42%

65.54%

41.34%

44.67%

86.72%

92.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

91

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$6.11

$6.10

$5.87

$6.15

$6.37

$6.42

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.03

0.11

0.16

0.16

0.15

0.15

Net

realized

and

unrealized

gains

(losses)

(0.06)

0.07

0.26

(0.25)

(0.17)

0.01

Total

from

investment

operations

........

(0.03)

0.18

0.42

(0.09)

(0.02)

0.16

Less

distributions

from:

Net

investment

income

..............

(0.07)

(0.17)

(0.19)

(0.19)

(0.20)

(0.21)

Net

asset

value,

end

of

period

..........

$6.01

$6.11

$6.10

$5.87

$6.15

$6.37

Total

return

c

.......................

(0.44)%

3.23%

7.08%

(1.45)%

(0.30)%

2.49%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.62%

0.64%

0.64%

0.61%

0.64%

0.61%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.62%

f

0.63%

0.63%

0.61%

f

0.64%

f

0.61%

f

Net

investment

income

...............

1.15%

1.84%

2.61%

2.65%

2.32%

2.36%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$854,014

$743,012

$946,318

$720,281

$854,640

$718,975

Portfolio

turnover

rate

................

46.42%

65.54%

41.34%

44.67%

86.72%

92.18%

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

Statement

of

Investments

(unaudited),

March

31,

2021

Franklin

U.S.

Government

Securities

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

a

a

Principal

Amount

a

Value

a

a

a

a

a

U.S.

Government

and

Agency

Securities

0.4%

U.S.

Treasury

Bonds,

4.75%,

2/15/37

....................................

$

14,500,000

$

19,837,246

Total

U.S.

Government

and

Agency

Securities

(Cost

$18,893,491)

.................

19,837,246

Mortgage-Backed

Securities

95.0%

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

95.0%

GNMA

I,

30

Year,

4.5%,

4/15/40

........................................

5,715,615

6,453,515

GNMA

I,

30

Year,

5%,

9/15/40

..........................................

202,521,321

234,045,658

GNMA

I,

30

Year,

5.5%,

2/15/40

........................................

89,426,894

105,170,681

GNMA

I,

30

Year,

6%,

12/15/39

.........................................

80,456,626

96,542,087

GNMA

I,

30

Year,

6.5%,

8/15/37

........................................

23,042,845

26,463,865

GNMA

I,

30

Year,

7%,

9/15/32

..........................................

15,265,121

18,008,898

GNMA

I,

30

Year,

7.5%,

7/15/26

-

8/15/33

.................................

1,513,652

1,746,220

GNMA

I,

30

Year,

8%,

10/15/29

.........................................

2,980

3,554

GNMA

I,

30

Year,

8.5%,

11/15/24

........................................

755

816

GNMA

I,

30

Year,

10%,

8/15/21

-

2/15/25

..................................

38

38

GNMA

I,

Single-family,

30

Year,

3.5%,

4/15/43

-

5/15/43

......................

17,581,569

19,033,834

GNMA

I,

Single-family,

30

Year,

4%,

10/15/40

-

8/15/46

.......................

56,629,253

62,463,917

GNMA

I,

Single-family,

30

Year,

4.5%,

2/15/39

-

6/15/41

......................

107,853,113

122,406,523

GNMA

I,

Single-family,

30

Year,

5%,

5/15/34

-

2/15/35

........................

30,350

34,213

GNMA

I,

Single-family,

30

Year,

5.5%,

5/15/33

-

4/15/49

......................

1,122,020

1,246,038

GNMA

I,

Single-family,

30

Year,

6%,

9/15/32

...............................

1,288

1,446

GNMA

I,

Single-family,

30

Year,

6.5%,

9/15/31

..............................

587

656

GNMA

I,

Single-family,

30

Year,

7.25%,

12/15/25

-

1/15/26

.....................

51,394

52,280

GNMA

I,

Single-family,

30

Year,

7.5%,

1/1

5/22

-

7/15/31

......................

1,970,194

2,062,013

GNMA

I,

Single-family,

30

Year,

7.7%,

10/15/21

.............................

1,062

1,063

GNMA

I,

Single-family,

30

Year,

8%,

9/15/21

-

9/15/30

........................

893,375

915,245

GNMA

I,

Single-family,

30

Year,

8.5%,

5/15/21

-

5/15/25

......................

80,660

81,421

GNMA

I,

Single-family,

30

Year,

9%,

5/15/21

-

1/15/23

........................

19,041

19,119

GNMA

I,

Single-family,

30

Year,

9.5%,

4/15/21

-

8/15/22

......................

8,812

8,838

GNMA

I,

Single-family,

30

Year,

10%,

6/15/21

-

2/15/25

.......................

4,906

4,917

GNMA

II,

30

Year,

4.5%,

5/20/34

-

6/20/41

.................................

4,842,428

5,429,067

GNMA

II,

30

Year,

6%,

7/20/39

.........................................

35,750,443

42,009,190

GNMA

II,

30

Year,

6%,

3/20/34

-

9/20/34

..................................

1,483,174

1,612,790

GNMA

II,

30

Year,

6.5%,

9/20/31

-

9/20/32

.................................

1,467,916

1,738,317

GNMA

II,

30

Year,

7%,

7/20/32

.........................................

419,189

501,425

GNMA

II,

30

Year,

7.5%,

10/20/24

.......................................

31,583

31,873

GNMA

II,

30

Year,

8%,

12/20/28

........................................

78,141

87,488

GNMA

II,

Single-family,

30

Year,

2%,

11/20/50

..............................

102,331,977

103,443,209

GNMA

II,

Single-family,

30

Year,

2%,

12/20/50

..............................

123,829,294

125,113,296

GNMA

II,

Single-family,

30

Year,

2%,

1/20/51

...............................

59,644,895

60,270,226

GNMA

II,

Single-family,

30

Year,

2.5%,

8/20/50

.............................

105,129,124

108,568,609

GNMA

II,

Single-family,

30

Year,

2.5%,

9/20/50

.............................

263,239,363

271,870,988

GNMA

II,

Single-family,

30

Year,

2.5%,

11/20/50

............................

20,856,618

21,542,462

GNMA

II,

Single-family,

30

Year,

2.5%,

11/20/50

............................

92,838,967

95,894,969

GNMA

II,

Single-family,

30

Year,

2.5%,

12/20/50

............................

122,308,452

126,344,494

GNMA

II,

Single-family,

30

Year,

2.5%,

1/20/51

.............................

150,110,660

155,072,443

GNMA

II,

Single-family,

30

Year,

2.5%,

3/20/51

.............................

104,499,000

107,969,668

GNMA

II,

Single-family,

30

Year,

3%,

10/20/44

..............................

30,237,991

32,261,895

GNMA

II,

Single-family,

30

Year,

3%,

12/20/44

..............................

17,931,687

19,070,985

GNMA

II,

Single-family,

30

Year,

3%,

5/20/45

...............................

27,414,953

29,016,397

GNMA

II,

Single-family,

30

Year,

3%,

4/20/46

...............................

38,456,806

40,628,399

GNMA

II,

Single-family,

30

Year,

3%,

9/20/47

...............................

31,416,183

33,225,711

GNMA

II,

Single-family,

30

Year,

3%,

10/20/47

..............................

51,783,481

54,650,671

GNMA

II,

Single-family,

30

Year,

3%,

6/20/50

...............................

22,165,447

23,567,828

GNMA

II,

Single-family,

30

Year,

3%,

7/20/50

...............................

102,719,790

107,101,001

GNMA

II,

Single-family,

30

Year,

3%,

12/20/50

..............................

202,208,618

213,367,787

GNMA

II,

Single-family,

30

Year,

3%,

1/20/51

...............................

272,568,412

285,625,393

GNMA

II,

Single-family,

30

Year,

3%,

2/20/51

...............................

202,372,028

213,249,990

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

93

a

a

Principal

Amount

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

(continued)

GNMA

II,

Single-family,

30

Year,

3%,

3/20/51

...............................

$

165,734,000

$

174,564,836

GNMA

II,

Single-family,

30

Year,

3%,

2/20/45

-

10/20/50

......................

129,564,565

137,101,095

GNMA

II,

Single-family,

30

Year,

3.5%,

7/20/42

.............................

49,975,398

54,318,617

GNMA

II,

Single-family,

30

Year,

3.5%,

9/20/42

.............................

62,739,570

68,164,300

GNMA

II,

Single-family,

30

Year,

3.5%,

5/20/43

.............................

18,385,099

19,966,995

GNMA

II,

Single-family,

30

Year,

3.5%,

6/20/43

.............................

21,401,829

23,252,548

GNMA

II,

Single-family,

30

Year,

3.5%,

9/20/47

.............................

310,665,446

330,237,382

GNMA

II,

Single-family,

30

Year,

3.5%,

11/20/47

............................

293,780,280

313,378,751

GNMA

II,

Single-family,

30

Year,

3.5%,

10/20/40

-

1/20/49

.....................

81,378,277

88,411,264

GNMA

II,

Single-family,

30

Year,

4%,

11/20/40

..............................

17,066,508

18,910,569

GNMA

II,

Single-family,

30

Year,

4%,

9/20/41

...............................

16,435,703

18,215,893

GNMA

II,

Single-family,

30

Year,

4%,

10/20/41

..............................

20,457,690

22,716,025

GNMA

II,

Single-family,

30

Year,

4%,

11/20/41

..............................

19,016,897

21,116,191

GNMA

II,

Single-family,

30

Year,

4%,

5/20/47

...............................

75,556,341

81,806,330

GNMA

II,

Single-family,

30

Year,

4%,

6/20/47

...............................

57,619,565

62,473,790

GNMA

II,

Single-family,

30

Year,

4%,

7/20/47

...............................

38,624,985

41,899,169

GNMA

II,

Single-family,

30

Year,

4%,

12/20/49

..............................

16,979,849

18,537,087

GNMA

II,

Single-family,

30

Year,

4%,

12/20/49

..............................

17,039,070

18,582,668

GNMA

II,

Single-family,

30

Year,

4%,

5/20/40

-

2/20/44

.......................

62,293,551

68,875,995

GNMA

II,

Single-family,

30

Year,

4.5%,

5/20/41

.............................

15,096,802

16,938,419

GNMA

II,

Single-family,

30

Year,

4.5%,

6/20/41

.............................

18,362,765

20,602,828

GNMA

II,

Single-family,

30

Year,

4.5%,

7/20/41

.............................

20,372,216

22,857,442

GNMA

II,

Single-family,

30

Year,

4.5%,

9/20/41

.............................

28,533,201

32,014,088

GNMA

II,

Single-family,

30

Year,

4.5%,

10/20/41

............................

20,571,422

23,081,029

GNMA

II,

Single-family,

30

Year,

4.5%,

5/20/33

-

2/20/44

......................

47,755,330

53,560,091

GNMA

II,

Single-family,

30

Year,

5%,

7/20/33

-

9/20/41

.......................

54,711,673

62,594,636

GNMA

II,

Single-family,

30

Year,

5.5%,

6/20/34

-

2/20/50

......................

60,259,251

69,901,276

GNMA

II,

Single-family,

30

Year,

6%,

6/20/34

...............................

789,092

905,871

GNMA

II,

Single-family,

30

Year,

6.5%,

6/20/24

-

1/20/39

......................

11,162,716

13,214,133

GNMA

II,

Single-family,

30

Year,

7%,

2/20/28

-

7/20/33

.......................

3,038,454

3,604,835

GNMA

II,

Single-family,

30

Year,

7.5%,

10/20/22

-

4/20/32

.....................

529,538

600,386

GNMA

II,

Single-family,

30

Year,

8%,

5/20/24

-

6/20/30

.......................

216,045

247,969

GNMA

II,

Single-family,

30

Year,

8.5%,

1/20/22

-

6/20/25

......................

8,072

8,132

GNMA

II,

Single-family,

30

Year,

9%,

10/20/21

-

11/20/21

......................

2,085

2,102

GNMA

II,

Single-family,

30

Year,

9.5%,

9/20/21

-

1/20/25

......................

4,127

4,139

4,878,700,307

Total

Mortgage-Backed

Securities

(Cost

$4,779,737,069)

.........................

4,878,700,307

Total

Long

Term

Investments

(Cost

$4,798,630,560)

.............................

4,898,537,553

a

a

a

a

a

Short

Term

Investments

4.7%

Shares

a

Money

Market

Funds

4.7%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

243,543,268

243,543,268

Total

Money

Market

Funds

(Cost

$243,543,268)

.................................

243,543,268

Total

Short

Term

Investments

(Cost

$243,543,268

)

...............................

243,543,268

a

Total

Investments

(Cost

$5,042,173,828)

100.1%

................................

$5,142,080,821

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(5,436,445)

Net

Assets

100.0%

...........................................................

$5,136,644,376

Franklin

Custodian

Funds

Statement

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.

94

See

Abbreviations

on

page

138

.

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

95

0

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

Year

Ended

September

30,

2018

a

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..............................

$19.76

$22.53

$18.66

$19.16

Income

from

investment

operations

b

:

Net

investment

income

c

......................................

0.25

0.51

0.53

0.02

Net

realized

and

unrealized

gains

(losses)

........................

1.88

(2.43)

4.41

(0.52)

Total

from

investment

operations

.................................

2.13

(1.92)

4.94

(0.50)

Less

distributions

from:

Net

investment

income

.......................................

(0.29)

(0.50)

(0.49)

—

Net

realized

gains

..........................................

(1.41)

(0.35)

(0.58)

—

Total

distributions

............................................

(1.70)

(0.85)

(1.07)

—

Net

asset

value,

end

of

period

...................................

$20.19

$19.76

$22.53

$18.66

Total

return

d

................................................

11.02%

(8.68)%

27.43%

(2.61)%

Ratios

to

average

net

assets

e

Expenses

f

,g

.................................................

0.82%

0.83%

0.83%

0.84%

Net

investment

income

........................................

2.50%

2.46%

2.51%

2.62%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.................................

$824,000

$742,188

$521,782

$3,536

Portfolio

turnover

rate

.........................................

3.15%

12.19%

7.90%

4.58%

a

For

the

period

September

10,

2018

(effective

date)

to

September

30,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.77

$22.54

$18.66

$19.18

$17.85

$16.08

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.26

0.52

0.53

0.50

0.53

0.48

Net

realized

and

unrealized

gains

(losses)

1.87

(2.41)

4.44

(0.17)

1.30

2.31

Total

from

investment

operations

........

2.13

(1.89)

4.97

0.33

1.83

2.79

Less

distributions

from:

Net

investment

income

..............

(0.30)

(0.53)

(0.51)

(0.54)

(0.49)

(0.50)

Net

realized

gains

.................

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

(0.52)

Total

distributions

...................

(1.71)

(0.88)

(1.09)

(0.85)

(0.50)

(1.02)

Net

asset

value,

end

of

period

..........

$20.19

$19.77

$22.54

$18.66

$19.18

$17.85

Total

return

c

.......................

11.02%

(8.59)%

27.61%

1.68%

10.38%

18.23%

Ratios

to

average

net

assets

d

Expenses

e

,f

........................

0.72%

0.73%

0.73%

0.74%

0.75%

0.73%

Net

investment

income

...............

2.59%

2.50%

2.61%

2.72%

2.86%

2.81%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,443,811

$3,388,126

$4,176,487

$3,654,795

$4,182,780

$4,180,124

Portfolio

turnover

rate

................

3.15%

12.19%

7.90%

4.58%

0.89%

7.17%

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

Utilities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

97

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.65

$22.42

$18.57

$19.09

$17.76

$16.01

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.21

0.41

0.42

0.41

0.43

0.39

Net

realized

and

unrealized

gains

(losses)

1.87

(2.41)

4.43

(0.18)

1.30

2.30

Total

from

investment

operations

........

2.08

(2.00)

4.85

0.23

1.73

2.69

Less

distributions

from:

Net

investment

income

..............

(0.25)

(0.42)

(0.42)

(0.44)

(0.39)

(0.42)

Net

realized

gains

.................

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

(0.52)

Total

distributions

...................

(1.66)

(0.77)

(1.00)

(0.75)

(0.40)

(0.94)

Net

asset

value,

end

of

period

..........

$20.07

$19.65

$22.42

$18.57

$19.09

$17.76

Total

return

c

.......................

10.81%

(9.10)%

26.96%

1.18%

9.88%

17.59%

Ratios

to

average

net

assets

d

Expenses

e

,f

........................

1.22%

1.23%

1.23%

1.24%

1.25%

1.23%

Net

investment

income

...............

2.07%

1.98%

2.11%

2.22%

2.36%

2.31%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$505,316

$537,808

$767,363

$834,070

$981,515

$1,064,065

Portfolio

turnover

rate

................

3.15%

12.19%

7.90%

4.58%

0.89%

7.17%

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

Utilities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.68

$22.45

$18.59

$19.11

$17.78

$16.02

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.22

0.44

0.45

0.44

0.46

0.42

Net

realized

and

unrealized

gains

(losses)

1.87

(2.41)

4.44

(0.18)

1.30

2.30

Total

from

investment

operations

........

2.09

(1.97)

4.89

0.26

1.76

2.72

Less

distributions

from:

Net

investment

income

..............

(0.26)

(0.45)

(0.45)

(0.47)

(0.42)

(0.44)

Net

realized

gains

.................

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

(0.52)

Total

distributions

...................

(1.67)

(0.80)

(1.03)

(0.78)

(0.43)

(0.96)

Net

asset

value,

end

of

period

..........

$20.10

$19.68

$22.45

$18.59

$19.11

$17.78

Total

return

c

.......................

10.87%

(8.95)%

27.17%

1.33%

10.04%

17.81%

Ratios

to

average

net

assets

d

Expenses

e

,f

........................

1.07%

1.08%

1.08%

1.09%

1.10%

1.08%

Net

investment

income

...............

2.23%

2.15%

2.26%

2.37%

2.51%

2.46%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$83,442

$84,488

$103,376

$72,927

$94,465

$103,247

Portfolio

turnover

rate

................

3.15%

12.19%

7.90%

4.58%

0.89%

7.17%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

99

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.93

$22.73

$18.81

$19.32

$17.97

$16.18

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.28

0.58

0.56

0.55

0.58

0.53

Net

realized

and

unrealized

gains

(losses)

1.90

(2.46)

4.50

(0.17)

1.31

2.32

Total

from

investment

operations

........

2.18

(1.88)

5.06

0.38

1.89

2.85

Less

distributions

from:

Net

investment

income

..............

(0.32)

(0.57)

(0.56)

(0.58)

(0.53)

(0.54)

Net

realized

gains

.................

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

(0.52)

Total

distributions

...................

(1.73)

(0.92)

(1.14)

(0.89)

(0.54)

(1.06)

Net

asset

value,

end

of

period

..........

$20.38

$19.93

$22.73

$18.81

$19.32

$17.97

Total

return

c

.......................

11.21%

(8.44)%

27.89%

1.97%

10.70%

18.55%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.57%

0.56%

0.53%

0.52%

0.48%

0.47%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.50%

0.50%

0.50%

0.48%

0.48%

f

0.47%

f

Net

investment

income

...............

2.80%

2.75%

2.84%

2.98%

3.13%

3.07%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$151,971

$144,079

$150,244

$230,393

$241,455

$219,587

Portfolio

turnover

rate

................

3.15%

12.19%

7.90%

4.58%

0.89%

7.17%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

a

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.93

$22.73

$18.81

$19.32

$17.97

$16.19

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.28

0.56

0.56

0.54

0.57

0.51

Net

realized

and

unrealized

gains

(losses)

1.89

(2.46)

4.48

(0.18)

1.30

2.32

Total

from

investment

operations

........

2.17

(1.90)

5.04

0.36

1.87

2.83

Less

distributions

from:

Net

investment

income

..............

(0.31)

(0.55)

(0.54)

(0.56)

(0.51)

(0.53)

Net

realized

gains

.................

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

(0.52)

Total

distributions

...................

(1.72)

(0.90)

(1.12)

(0.87)

(0.52)

(1.05)

Net

asset

value,

end

of

period

..........

$20.38

$19.93

$22.73

$18.81

$19.32

$17.97

Total

return

c

.......................

11.17%

(8.51)%

27.78%

1.82%

10.64%

18.34%

Ratios

to

average

net

assets

d

Expenses

e

,f

........................

0.57%

0.58%

0.58%

0.59%

0.60%

0.58%

Net

investment

income

...............

2.73%

2.66%

2.76%

2.87%

3.01%

2.96%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,223,489

$1,179,002

$1,262,883

$927,845

$963,228

$755,484

Portfolio

turnover

rate

................

3.15%

12.19%

7.90%

4.58%

0.89%

7.17%

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

Statement

of

Investments

(unaudited),

March

31,

2021

Franklin

Utilities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

101

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

99.6%

Diversified

Telecommunication

Services

1.0%

a

TELUS

Corp.

........................................

Canada

3,000,000

$

59,746,976

Electric

Utilities

58.2%

Alliant

Energy

Corp.

...................................

United

States

3,856,870

208,888,079

American

Electric

Power

Co.,

Inc.

.........................

United

States

3,000,000

254,100,000

Avangrid

,

Inc.

........................................

United

States

300,000

14,943,000

Duke

Energy

Corp.

....................................

United

States

2,900,000

279,937,000

Edison

International

...................................

United

States

4,200,000

246,120,000

Emera,

Inc.

..........................................

Canada

1,800,000

80,103,437

Entergy

Corp.

........................................

United

States

2,300,000

228,781,000

Evergy

,

Inc.

..........................................

United

States

3,200,000

190,496,000

Eversource

Energy

....................................

United

States

2,200,000

190,498,000

Exelon

Corp.

.........................................

United

States

6,200,000

271,188,000

FirstEnergy

Corp.

.....................................

United

States

2,000,000

69,380,000

NextEra

Energy,

Inc.

...................................

United

States

9,686,286

732,380,085

OGE

Energy

Corp.

....................................

United

States

1,400,000

45,304,000

a

PG&E

Corp.

.........................................

United

States

6,500,000

76,115,000

Pinnacle

West

Capital

Corp.

.............................

United

States

2,200,000

178,970,000

PNM

Resources,

Inc.

..................................

United

States

1,800,070

88,293,434

PPL

Corp.

...........................................

United

States

2,200,000

63,448,000

Southern

Co.

(The)

....................................

United

States

4,200,000

261,072,000

Xcel

Energy,

Inc.

......................................

United

States

2,200,000

146,322,000

3,626,339,035

Gas

Utilities

2.7%

Atmos

Energy

Corp.

...................................

United

States

250,000

24,712,500

Southwest

Gas

Holdings,

Inc.

............................

United

States

1,000,000

68,710,000

Spire,

Inc.

...........................................

United

States

1,000,000

73,890,000

167,312,500

Independent

Power

and

Renewable

Electricity

Producers

0.7%

Vistra

Corp.

..........................................

United

States

2,500,000

44,200,000

Multi-Utilities

33.0%

Ameren

Corp.

........................................

United

States

1,668,250

135,728,820

Black

Hills

Corp.

......................................

United

States

784,393

52,373,921

CenterPoint

Energy,

Inc.

................................

United

States

6,300,000

142,695,000

CMS

Energy

Corp.

....................................

United

States

5,000,000

306,100,000

Consolidated

Edison,

Inc.

...............................

United

States

1,200,000

89,760,000

Dominion

Energy,

Inc.

..................................

United

States

4,000,000

303,840,000

DTE

Energy

Co.

......................................

United

States

1,750,000

232,995,000

E.ON

SE

............................................

Germany

9,000,000

104,876,816

National

Grid

plc

......................................

United

Kingdom

5,999,933

71,212,343

NiSource,

Inc.

........................................

United

States

4,700,000

113,317,000

NorthWestern

Corp.

...................................

United

States

1,000,000

65,200,000

Public

Service

Enterprise

Group,

Inc.

......................

United

States

1,900,000

114,399,000

Sempra

Energy

.......................................

United

States

1,900,000

251,902,000

WEC

Energy

Group,

Inc.

................................

United

States

800,000

74,872,000

2,059,271,900

Oil,

Gas

&

Consumable

Fuels

2.1%

a

Cheniere

Energy,

Inc.

..................................

United

States

1,300,000

93,613,000

Origin

Energy

Ltd.

.....................................

Australia

7,000,000

25,079,076

Williams

Cos.,

Inc.

(The)

................................

United

States

500,000

11,845,000

130,537,076

Water

Utilities

1.9%

Essential

Utilities,

Inc.

..................................

United

States

1,750,000

78,312,500

Franklin

Custodian

Funds

Statement

of

Investments

(unaudited)

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Water

Utilities

(continued)

United

Utilities

Group

plc

................................

United

Kingdom

3,000,000

$

38,329,623

116,642,123

Total

Common

Stocks

(Cost

$3,167,340,885)

....................................

6,204,049,610

Principal

Amount

*

Corporate

Bonds

0.1%

Electric

Utilities

0.1%

Evergy

Missouri

West,

Inc.

,

Senior

Bond

,

8.27

%

,

11/15/21

.......

United

States

6,100,000

6,369,716

Total

Corporate

Bonds

(Cost

$6,095,851)

.......................................

6,369,716

Total

Long

Term

Investments

(Cost

$3,173,436,736)

.............................

6,210,419,326

a

Short

Term

Investments

0.3%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

0.3%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

17,537,645

17,537,645

Total

Money

Market

Funds

(Cost

$17,537,645)

..................................

17,537,645

Total

Short

Term

Investments

(Cost

$17,537,645

)

................................

17,537,645

a

Total

Investments

(Cost

$3,190,974,381)

100.0%

................................

$6,227,956,971

Other

Assets,

less

Liabilities

0.0%

.............................................

4,071,708

Net

Assets

100.0%

...........................................................

$6,232,028,679

See

Abbreviations

on

page

138

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

March

31,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

103

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$11,688,109,818

$65,716,587

$5,916,861,943

Cost

-

Non-controlled

affiliates

(Note

3

f

and

11

)

.................

494,456,417

929,528

124,919,352

Cost

-

Unaffiliated

repurchase

agreements

....................

43,284,332

—

3,965,473

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$148,791,977,

$—

and

$93,061,365

respectively)

...............

$22,638,484,646

$79,402,428

$20,334,923,337

Value

-

Non-controlled

affiliates

(Note

3

f

and

11

)

................

494,456,417

929,528

137,023,235

Value

-

Unaffiliated

repurchase

agreements

....................

43,284,332

—

3,965,473

Cash

..................................................

5,586

—

71,432,638

Receivables:

Investment

securities

sold

(Includes

securities

loaned$3,299,446,

$–

and

$–

respectively)

.....................................

60,853,487

—

—

Capital

shares

sold

......................................

95,828,104

305,468

12,169,287

Dividends

and

interest

...................................

3,771,100

7,928

8,238,771

Affiliates

..............................................

—

68,676

—

Total

assets

........................................

23,336,683,672

80,714,028

20,567,752,741

Liabilities:

Payables:

Investment

securities

purchased

............................

45,241,272

—

78,412,075

Capital

shares

redeemed

.................................

46,915,861

98,072

24,390,257

Management

fees

.......................................

8,003,259

48,636

6,958,481

Distribution

fees

........................................

3,317,807

16,591

3,397,543

Transfer

agent

fees

......................................

1,610,232

16,876

2,790,771

Payable

upon

return

of

securities

loaned

(Note

1

h

)

................

107,019,487

—

22,410,473

Accrued

expenses

and

other

liabilities

.........................

102,411

7,333

603,176

Total

liabilities

.......................................

212,210,329

187,508

138,962,776

Net

assets,

at

value

...............................

$23,124,473,343

$80,526,520

$20,428,789,965

Net

assets

consist

of:

Paid-in

capital

...........................................

$12,026,728,462

$67,139,748

$5,096,040,425

Total

distributable

earnings

(losses)

...........................

11,097,744,881

13,386,772

15,332,749,540

Net

assets,

at

value

...............................

$23,124,473,343

$80,526,520

$20,428,789,965

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

March

31,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Class

A:

Net

assets,

at

value

.....................................

$10,105,877,878

$52,726,891

$12,345,523,096

Shares

outstanding

......................................

73,957,327

1,928,600

89,427,782

Net

asset

value

per

share

a

................................

$136.64

$27.34

$138.05

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%,

94.50%

and

94.50%,

respectively)

..........................

$144.59

$28.93

$146.08

Class

C:

Net

assets,

at

value

.....................................

$1,260,434,180

$5,952,763

$759,730,517

Shares

outstanding

......................................

11,282,587

219,542

6,164,983

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$111.71

$27.11

$123.23

Class

R:

Net

assets,

at

value

.....................................

$262,458,193

$685,017

$405,800,711

Shares

outstanding

......................................

1,990,631

25,085

2,954,507

Net

asset

value

and

maximum

offering

price

per

share

...........

$131.85

$27.31

$137.35

Class

R6:

Net

assets,

at

value

.....................................

$7,849,067,337

$71,598

$3,087,362,865

Shares

outstanding

......................................

54,741,892

2,609

22,302,268

Net

asset

value

and

maximum

offering

price

per

share

...........

$143.38

$27.44

$138.43

Advisor

Class:

Net

assets,

at

value

.....................................

$3,646,635,755

$21,090,251

$3,830,372,776

Shares

outstanding

......................................

25,731,101

768,934

27,645,856

Net

asset

value

and

maximum

offering

price

per

share

...........

$141.72

$27.43

$138.55

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

March

31,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

105

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$61,494,938,705

$4,798,630,560

$3,173,436,736

Cost

-

Non-controlled

affiliates

(Note

3

f

and

11

)

.................

3,400,974,365

243,543,268

17,537,645

Cost

-

Unaffiliated

repurchase

agreements

....................

16,101,943

—

—

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$29,935,015,

$—

and

$—

respectively)

.................................

$68,751,746,492

$4,898,537,553

$6,210,419,326

Value

-

Non-controlled

affiliates

(Note

3

f

and

11

)

................

2,645,698,378

243,543,268

17,537,645

Value

-

Unaffiliated

repurchase

agreements

....................

16,101,943

—

—

Cash

..................................................

1,544,161

—

—

Receivables:

Investment

securities

sold

.................................

237,380,999

98,200,239

—

Capital

shares

sold

......................................

55,575,145

5,841,029

5,009,021

Dividends

and

interest

...................................

424,588,729

13,094,007

10,255,771

European

Union

tax

reclaims

(Note

1

j

)

.......................

73,932,613

—

1,064,361

Total

assets

........................................

72,206,568,460

5,259,216,096

6,244,286,124

Liabilities:

Payables:

Investment

securities

purchased

............................

1,060,427,334

106,850,363

—

Capital

shares

redeemed

.................................

64,544,473

9,534,075

7,727,687

Management

fees

.......................................

21,061,997

1,995,934

2,322,148

Distribution

fees

........................................

12,615,003

743,371

896,500

Transfer

agent

fees

......................................

9,831,698

869,964

900,999

Distributions

to

shareholders

...............................

—

1,250,824

—

Options

written,

at

value

(premiums

received

$2,452,073,

$–

and

$–

respectively)

............................................

1,310,000

—

—

Payable

upon

return

of

securities

loaned

(Note

1

h

)

................

30,761,943

—

—

Accrued

expenses

and

other

liabilities

.........................

2,758,610

1,327,189

410,111

Total

liabilities

.......................................

1,203,311,058

122,571,720

12,257,445

Net

assets,

at

value

...............................

$71,003,257,402

$5,136,644,376

$6,232,028,679

Net

assets

consist

of:

Paid-in

capital

...........................................

$67,913,418,219

$5,665,011,457

$3,101,926,321

Total

distributable

earnings

(losses)

...........................

3,089,839,183

(528,367,081)

3,130,102,358

Net

assets,

at

value

...............................

$71,003,257,402

$5,136,644,376

$6,232,028,679

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

March

31,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Class

A:

Net

assets,

at

value

.....................................

$12,896,280,331

$1,108,242,801

$824,000,333

Shares

outstanding

......................................

5,291,592,838

185,144,215

40,821,139

Net

asset

value

per

share

a

................................

$2.44

$5.99

$20.19

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%,

96.25%

and

96.25%,

respectively)

..........................

$2.54

$6.22

$20.98

Class

A1:

Net

assets,

at

value

.....................................

$36,162,876,241

$2,511,490,229

$3,443,810,730

Shares

outstanding

......................................

14,800,923,372

419,367,827

170,544,957

Net

asset

value

per

share

a

................................

$2.44

$5.99

$20.19

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%,

96.25%

and

96.25%,

respectively)

..........................

$2.54

$6.22

$20.98

Class

C:

Net

assets,

at

value

.....................................

$9,651,830,571

$315,054,034

$505,316,243

Shares

outstanding

......................................

3,888,790,248

53,024,582

25,176,848

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$2.48

$5.94

$20.07

Class

R:

Net

assets,

at

value

.....................................

$246,501,325

$24,008,371

$83,441,841

Shares

outstanding

......................................

103,030,574

4,010,413

4,150,717

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.39

$5.99

$20.10

Class

R6:

Net

assets,

at

value

.....................................

$714,160,654

$323,835,279

$151,970,709

Shares

outstanding

......................................

293,565,323

53,840,512

7,456,826

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.43

$6.01

$20.38

Advisor

Class:

Net

assets,

at

value

.....................................

$11,331,608,280

$854,013,662

$1,223,488,823

Shares

outstanding

......................................

4,678,522,674

142,141,951

60,035,852

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.42

$6.01

$20.38

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

March

31,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

107

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$379,018,

$1,506

and

$338,599,

respectively)

Unaffiliated

issuers

......................................

$26,480,688

$133,885

$81,711,975

Non-controlled

affiliates

(Note

3f

and

1

1

)

......................

1,920

10

1,338

Interest:

Unaffiliated

issuers

......................................

2,405

—

1,230

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

...................

286,929

—

246,184

Non-controlled

affiliates

(Note

3

f

)

...........................

352

—

142

Total

investment

income

.................................

26,772,294

133,895

81,960,869

Expenses:

Management

fees

(Note

3

a

)

.................................

46,554,587

241,471

42,470,507

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

12,165,820

54,938

14,910,539

    Class

C

..............................................

6,251,225

27,248

3,780,332

    Class

R

..............................................

640,863

1,970

1,047,180

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

4,647,974

42,585

6,229,320

    Class

C

..............................................

597,185

5,289

397,908

    Class

R

..............................................

122,631

683

220,885

    Class

R6

.............................................

827,707

51

438,648

    Advisor

Class

..........................................

1,650,979

18,717

1,971,697

Custodian

fees

(Note

4

)

....................................

109,215

142

71,117

Reports

to

shareholders

....................................

692,594

4,170

544,742

Registration

and

filing

fees

..................................

480,726

61,960

185,888

Professional

fees

.........................................

70,812

6,959

93,186

Trustees'

fees

and

expenses

................................

27,872

—

41,723

Amortization

of

offering

costs

(Note

1l)

.........................

—

44,051

—

Other

..................................................

157,361

(18,169)

219,409

Total

expenses

.......................................

74,997,551

492,065

72,623,081

Expense

reductions

(Note

4

)

.............................

(6)

—

(50)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

............

(196,201)

(113,134)

(87,576)

Net

expenses

.......................................

74,801,344

378,931

72,535,455

Net

investment

income

(loss)

..........................

(48,029,050)

(245,036)

9,425,414

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

246,733,941

21,674

1,109,240,581

Foreign

currency

transactions

..............................

(184,404)

(538)

7,312

Net

realized

gain

(loss)

................................

246,549,537

21,136

1,109,247,893

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

2,146,930,562

5,035,400

1,637,651,463

Non-controlled

affiliates

(Note

3

f

and

11

)

....................

—

—

12,103,883

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

...........................................

(15,088)

—

161

Net

change

in

unrealized

appreciation

(depreciation)

..........

2,146,915,474

5,035,400

1,649,755,507

Net

realized

and

unrealized

gain

(loss)

..........................

2,393,465,011

5,056,536

2,759,003,400

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$2,345,435,961

$4,811,500

$2,768,428,814

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

March

31,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$9,633,522,

$–

and

$548,466,

respectively)

Unaffiliated

issuers

......................................

$710,602,033

$—

$101,634,221

Non-controlled

affiliates

(Note

3f

and

11)

......................

7,184

1,616

75

Interest:

Unaffiliated

issuers:

Paydown

gain

(loss)

...................................

(8,335,661)

(33,079,104)

—

Paid

in

cash

a

.........................................

660,063,505

79,618,409

255,427

Non-controlled

affiliates

(Note

3

f

and

11

)

......................

456,944

—

—

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

...................

116,102

—

—

Non-controlled

affiliates

(Note

3

f

)

...........................

60

—

—

Other

income

(Note

1

j

)

.....................................

85,175,648

—

1,064,361

Total

investment

income

.................................

1,448,085,815

46,540,921

102,954,084

Expenses:

Management

fees

(Note

3

a

)

.................................

126,281,740

12,026,119

13,972,349

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

14,275,460

1,446,077

984,161

    Class

A1

.............................................

25,900,720

1,863,422

2,592,375

    Class

C

..............................................

30,986,702

1,116,424

1,722,406

    Class

R

..............................................

581,491

62,411

203,319

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

5,264,361

742,103

414,266

    Class

A1

.............................................

15,959,996

1,665,400

1,818,411

    Class

C

..............................................

4,410,966

220,354

278,785

    Class

R

..............................................

108,287

16,415

43,296

    Class

R6

.............................................

205,227

60,801

71,239

    Advisor

Class

..........................................

4,825,259

504,517

638,957

Custodian

fees

(Note

4

)

....................................

272,214

14,531

27,917

Reports

to

shareholders

....................................

2,211,387

297,991

231,803

Registration

and

filing

fees

..................................

567,535

108,631

124,532

Professional

fees

.........................................

617,407

70,262

57,325

Trustees'

fees

and

expenses

................................

176,378

12,669

16,172

Other

..................................................

746,040

474,185

152,331

Total

expenses

.......................................

233,391,170

20,702,312

23,349,644

Expense

reductions

(Note

4

)

.............................

(273,794)

(14,672)

(13)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

............

(637,537)

(122,541)

(54,158)

Net

expenses

.......................................

232,479,839

20,565,099

23,295,473

Net

investment

income

..............................

1,215,605,976

25,975,822

79,658,611

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

March

31,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

109

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

2,921,261,032

(9,539,997)

157,071,031

Non-controlled

affiliates

(Note

3

f

and

11

)

....................

(75,601,226)

—

—

Written

options

.........................................

103,232,131

—

—

Foreign

currency

transactions

..............................

1,491,915

—

104,727

Net

realized

gain

(loss)

................................

2,950,383,852

(9,539,997)

157,175,758

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

8,383,620,353

(46,111,654)

414,516,761

Non-controlled

affiliates

(Note

3

f

and

11

)

....................

(122,630,364)

—

—

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

...........................................

(1,770,349)

—

3,054

Written

options

.........................................

(9,329,179)

—

—

Net

change

in

unrealized

appreciation

(depreciation)

..........

8,249,890,461

(46,111,654)

414,519,815

Net

realized

and

unrealized

gain

(loss)

..........................

11,200,274,313

(55,651,651)

571,695,573

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$12,415,880,289

$(29,675,829)

$651,354,184

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(48,029,050)

$(37,307,263)

$(245,036)

$(96,095)

Net

realized

gain

(loss)

............

246,549,537

(11,782,615)

21,136

616,957

Net

change

in

unrealized

appreciation

(depreciation)

.................

2,146,915,474

5,214,814,999

5,035,400

6,946,877

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

2,345,435,961

5,165,725,121

4,811,500

7,467,739

Distributions

to

shareholders:

Class

A

........................

—

(36,593,390)

(319,730)

—

Class

C

........................

—

(5,870,103)

(38,815)

—

Class

R

........................

—

(1,018,472)

(5,388)

—

Class

R6

.......................

—

(18,942,625)

(542)

—

Advisor

Class

...................

—

(9,227,766)

(143,074)

(271,450)

Total

distributions

to

shareholders

.....

—

(71,652,356)

(507,549)

(271,450)

Capital

share

transactions:

(Note

2

)

Class

A

........................

666,397,697

1,454,891,535

23,479,660

23,681,349

Class

C

........................

29,515,457

180,005,579

1,733,336

3,472,386

Class

R

........................

13,667,208

31,793,316

(19,666)

636,164

Class

R6

.......................

1,282,136,913

1,809,661,791

490

54,504

Advisor

Class

...................

390,485,897

971,781,641

2,850,380

8,733,501

Total

capital

share

transactions

.......

2,382,203,172

4,448,133,862

28,044,200

36,577,904

Net

increase

(decrease)

in

net

assets

.....................

4,727,639,133

9,542,206,627

32,348,151

43,774,193

Net

assets:

Beginning

of

period

................

18,396,834,210

8,854,627,583

48,178,369

4,404,176

End

of

period

.....................

$23,124,473,343

$18,396,834,210

$80,526,520

$48,178,369

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

111

Franklin

Growth

Fund

Franklin

Income

Fund

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$9,425,414

$60,448,577

$1,215,605,976

$2,517,733,786

Net

realized

gain

(loss)

............

1,109,247,893

1,577,883,876

2,950,383,852

(1,745,655,238)

Net

change

in

unrealized

appreciation

(depreciation)

.................

1,649,755,507

2,276,524,662

8,249,890,461

(4,183,159,000)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

2,768,428,814

3,914,857,115

12,415,880,289

(3,411,080,452)

Distributions

to

shareholders:

Class

A

........................

(914,505,600)

(533,975,512)

(287,279,448)

(456,846,261)

Class

A1

.......................

—

—

(895,574,827)

(1,983,784,425)

Class

C

........................

(64,091,884)

(41,241,305)

(221,525,787)

(576,464,046)

Class

R

........................

(32,805,859)

(23,492,106)

(5,789,147)

(12,776,908)

Class

R6

.......................

(241,399,632)

(159,258,755)

(37,706,443)

(102,305,422)

Advisor

Class

...................

(294,899,901)

(191,436,704)

(278,367,126)

(614,533,098)

Total

distributions

to

shareholders

.....

(1,547,702,876)

(949,404,382)

(1,726,242,778)

(3,746,710,160)

Capital

share

transactions:

(Note

2

)

Class

A

........................

626,714,799

97,946,521

1,026,248,219

3,477,926,943

Class

A1

.......................

—

—

(2,008,136,425)

(3,211,657,147)

Class

C

........................

(7,156,074)

(92,577,459)

(1,211,606,506)

(2,917,320,022)

Class

R

........................

(40,677,166)

(82,247,248)

(12,116,172)

(18,625,701)

Class

R6

.......................

(105,957,522)

(26,354,084)

(1,111,915,201)

(89,580,554)

Advisor

Class

...................

48,885,549

(172,809,996)

(34,147,851)

(943,560,671)

Total

capital

share

transactions

.......

521,809,586

(276,042,266)

(3,351,673,936)

(3,702,817,152)

Net

increase

(decrease)

in

net

assets

.....................

1,742,535,524

2,689,410,467

7,337,963,575

(10,860,607,764)

Net

assets:

Beginning

of

period

................

18,686,254,441

15,996,843,974

63,665,293,827

74,525,901,591

End

of

period

.....................

$20,428,789,965

$18,686,254,441

$71,003,257,402

$63,665,293,827

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.

112

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

Six

Months

Ended

March

31,

2021

(unaudited)

Year

Ended

September

30,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$25,975,822

$83,651,109

$79,658,611

$160,749,555

Net

realized

gain

(loss)

............

(9,539,997)

28,608,372

157,175,758

408,249,244

Net

change

in

unrealized

appreciation

(depreciation)

.................

(46,111,654)

36,591,677

414,519,815

(1,191,749,346)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(29,675,829)

148,851,158

651,354,184

(622,750,547)

Distributions

to

shareholders:

Class

A

........................

(12,665,359)

(18,115,363)

(63,653,855)

(25,093,089)

Class

A1

.......................

(29,478,109)

(74,781,123)

(286,363,383)

(156,995,208)

Class

C

........................

(3,046,388)

(8,281,370)

(43,419,084)

(25,054,946)

Class

R

........................

(240,555)

(763,817)

(6,616,767)

(3,626,631)

Class

R6

.......................

(4,408,465)

(9,736,779)

(12,168,657)

(7,024,821)

Advisor

Class

...................

(9,662,022)

(23,389,929)

(100,670,019)

(51,729,682)

Total

distributions

to

shareholders

.....

(59,500,898)

(135,068,381)

(512,891,765)

(269,524,377)

Capital

share

transactions:

(Note

2

)

Class

A

........................

30,444,875

763,086,030

64,147,299

305,811,426

Class

A1

.......................

(106,907,318)

(231,496,873)

(20,917,803)

(279,454,687)

Class

C

........................

(33,695,703)

(35,370,433)

(43,894,932)

(137,173,801)

Class

R

........................

(3,316,718)

(5,296,773)

(3,066,582)

(5,101,327)

Class

R6

.......................

(32,209,686)

(213,464,773)

4,390,740

16,015,666

Advisor

Class

...................

125,040,490

(208,817,347)

17,216,621

85,734,447

Total

capital

share

transactions

.......

(20,644,060)

68,639,831

17,875,343

(14,168,276)

Net

increase

(decrease)

in

net

assets

.....................

(109,820,787)

82,422,608

156,337,762

(906,443,200)

Net

assets:

Beginning

of

period

................

5,246,465,163

5,164,042,555

6,075,690,917

6,982,134,117

End

of

period

.....................

$5,136,644,376

$5,246,465,163

$6,232,028,679

$6,075,690,917

Franklin

Custodian

Funds

113

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

1.

Organization

and

Significant

Accounting

Policies

Franklin

Custodian

Funds (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

six

separate

funds

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

classes

of

shares

offered

within

each

of

the

Funds

are

indicated

below.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

Class

A,

Class

C,

Class

R,

Class

R6,

&

Advisor

Class

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Class

A,

Class

A1,

Class

C,

Class

R,

Class

R6,

&

Advisor

Class

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

The

following

summarizes

the Funds'

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

114

franklintempleton.com

Semiannual

Report

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Funds'

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

March

31,

2021,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds'

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds'

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Funds

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Funds

do

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statements

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

115

franklintempleton.com

Semiannual

Report

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

period

end,

as

indicated

in

the

Statements

of

Investments,

had

been

entered

into

on

March

31,

2021.

d.

Securities

Purchased

on

a

Delayed

Delivery

Basis

Certain

or

all

Funds

purchase

securities

on

a

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Funds

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

they

may

sell

the

securities

before

the

settlement

date.

Sufficient

assets

have

been

segregated

for

these

securities.

e.

Derivative

Financial

Instruments

Certain

or

all

Funds

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statements

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statements

of

Operations.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

Certain

or

all

Funds

purchased

or

wrote

exchange

traded

option

contracts

primarily

to

manage

exposure

to

equity

price

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss.

See

Note

10 regarding

other

derivative

information.

f.

Index-Linked

Notes

Certain

or

all

Funds

invest

in

index-linked

notes.

Index-linked

notes

are

senior,

unsecured,

subordinated

debt

securities

issued

by

a

financial

institution,

and

the

value

is

based

on

the

price

movements

of

the

underlying

index.

Index-linked

notes

are

designed

to

provide

investors

access

to

the

returns

of

various

market

benchmarks

and

intended

to

replicate

the

economic

effects

that

would

apply

had

the

Fund

directly

purchased

the

underlying

referenced

asset

or

basket

of

assets.

The

risks

of

investing

in

index-linked

notes

include

unfavorable

price

movements

in

the

underlying

index

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

index-linked

notes

and

the

appreciation

potential

may

be

limited.

Index-linked

notes

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Funds.

g.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Joint

Repurchase

Agreement

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

116

franklintempleton.com

Semiannual

Report

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.

h.

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,

and/or

a

joint

repurchase

agreement

in

the

Statements

of

Assets

and

Liabilities.

Additionally,

the

Franklin

DynaTech

Fund

and

Franklin

Growth

Fund

received

$42,435,690

and

$71,942,292

respectively,

in

U.S.

Government

and

Agency

securities

as

collateral.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statements

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

i.

Senior

Floating

Rate

Interests

Certain

or

all

Funds

invest

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

InterBank

Offered

Rate

(LIBOR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the

Funds

invest

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

j.

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).

These

additional

filings

are

subject

to

various

administrative

proceedings

by

the

local

jurisdictions’

tax

authorities

within

the

European

Union,

as

well

as

a

number

of

related

judicial

proceedings.

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.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Equity-Linked

Securities

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

117

franklintempleton.com

Semiannual

Report

purposes,

EU

reclaims

received

by

the

Funds,

if

any,

reduce

the

amounts

of

foreign

taxes

Fund

shareholders

can

use

as

tax

credits

in

their

individual

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,

2021, 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. 

k.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

separately

on

the Statements

of

Operations.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-

dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Funds.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

l.

Offering

Costs

Offering

costs

are

amortized

on

a

straight

line

basis

over

the

first

twelve

months

of

operations.

m.

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.

n.

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.

2.

Shares

of

Beneficial

Interest

At

March

31,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

1.

Organization

and

Significant

Accounting

Policies

(continued)

j.

Income

and

Deferred

Taxes

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

118

franklintempleton.com

Semiannual

Report

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

a

...................................

13,146,004

$1,800,457,437

1,323,554

$36,225,865

Shares

issued

in

reinvestment

of

distributions

..........

—

—

11,548

311,678

Shares

redeemed

...............................

(8,297,849)

(1,134,059,740)

(476,119)

(13,057,883)

Net

increase

(decrease)

..........................

4,848,155

$666,397,697

858,983

$23,479,660

Year

ended

September

30,

2020

b

Shares

sold

a

...................................

28,364,638

$2,769,255,113

1,189,714

$26,508,969

Shares

issued

in

reinvestment

of

distributions

..........

402,761

34,512,576

—

—

Shares

redeemed

...............................

(14,031,050)

(1,348,876,154)

(120,097)

(2,827,620)

Net

increase

(decrease)

..........................

14,736,349

$1,454,891,535

1,069,617

$23,681,349

Class

C

Class

C

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

1,804,500

$202,229,851

127,536

$3,492,422

Shares

issued

in

reinvestment

of

distributions

..........

—

—

1,441

38,661

Shares

redeemed

a

..............................

(1,535,135)

(172,714,394)

(67,023)

(1,797,747)

Net

increase

(decrease)

..........................

269,365

$29,515,457

61,954

$1,733,336

Year

ended

September

30,

2020

b

Shares

sold

...................................

5,052,306

$403,013,647

166,260

$3,673,808

Shares

issued

in

reinvestment

of

distributions

..........

80,045

5,663,940

—

—

Shares

redeemed

a

..............................

(2,834,712)

(228,672,008)

(8,672)

(201,422)

Net

increase

(decrease)

..........................

2,297,639

$180,005,579

157,588

$3,472,386

Class

R

Class

R

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

326,353

$43,024,798

811

$22,662

Shares

issued

in

reinvestment

of

distributions

..........

—

—

198

5,336

Shares

redeemed

...............................

(222,915)

(29,357,590)

(1,585)

(47,664)

Net

increase

(decrease)

..........................

103,438

$13,667,208

(576)

$(19,666)

Year

ended

September

30,

2020

b

Shares

sold

...................................

796,616

$73,704,539

26,436

$655,110

Shares

issued

in

reinvestment

of

distributions

..........

12,155

1,008,426

—

—

Shares

redeemed

...............................

(463,145)

(42,919,649)

(775)

(18,946)

Net

increase

(decrease)

..........................

345,626

$31,793,316

25,661

$636,164

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

119

franklintempleton.com

Semiannual

Report

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

15,016,346

$2,154,280,504

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

—

—

18

490

Shares

redeemed

...............................

(6,073,810)

(872,143,591)

—

—

Net

increase

(decrease)

..........................

8,942,536

$1,282,136,913

18

$490

Year

ended

September

30,

2020

b

Shares

sold

...................................

26,515,105

$2,733,712,541

2,591

$54,504

Shares

issued

in

reinvestment

of

distributions

..........

210,608

18,853,620

—

—

Shares

redeemed

...............................

(9,539,958)

(942,904,370)

—

—

Net

increase

(decrease)

..........................

17,185,755

$1,809,661,791

2,591

$54,504

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

6,645,583

$944,394,046

134,160

$3,733,327

Shares

issued

in

reinvestment

of

distributions

..........

—

—

1,206

32,618

Shares

redeemed

...............................

(3,883,042)

(553,908,149)

(33,654)

(915,565)

Net

increase

(decrease)

..........................

2,762,541

$390,485,897

101,712

$2,850,380

Year

ended

September

30,

2020

Shares

sold

...................................

16,461,840

$1,663,036,037

422,071

$8,849,438

Shares

issued

in

reinvestment

of

distributions

..........

95,164

8,429,619

—

—

Shares

redeemed

...............................

(7,080,222)

(699,684,015)

(4,849)

(115,937)

Net

increase

(decrease)

..........................

9,476,782

$971,781,641

417,222

$8,733,501

Franklin

Growth

Fund

Franklin

Income

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

a

...................................

6,344,011

$861,794,728

1,004,503,456

$2,295,690,041

Shares

issued

in

reinvestment

of

distributions

..........

6,500,918

849,149,872

116,689,449

258,447,285

Shares

redeemed

...............................

(8,018,095)

(1,084,229,801)

(673,146,255)

(1,527,889,107)

Net

increase

(decrease)

..........................

4,826,834

$626,714,799

448,046,650

$1,026,248,219

Year

ended

September

30,

2020

Shares

sold

a

...................................

13,572,097

$1,499,164,158

2,231,805,325

$4,788,946,529

Shares

issued

in

reinvestment

of

distributions

..........

4,607,922

498,807,566

200,674,952

428,721,746

Shares

issued

on

reorganization

(Note

12)

............

681,606

54,922,873

—

—

Shares

redeemed

...............................

(17,479,810)

(1,954,948,076)

(820,875,107)

(1,739,741,332)

Net

increase

(decrease)

..........................

1,381,815

$97,946,521

1,611,605,170

$3,477,926,943

Class

A1

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

120

franklintempleton.com

Semiannual

Report

Franklin

Growth

Fund

Franklin

Income

Fund

Shares

Amount

Shares

Amount

Class

A1

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

—

$—

239,522,602

$545,306,753

Shares

issued

in

reinvestment

of

distributions

..........

—

—

370,504,744

819,478,162

Shares

redeemed

...............................

—

—

(1,490,735,195)

(3,372,921,340)

Net

increase

(decrease)

..........................

—

$—

(880,707,849)

$(2,008,136,425)

Year

ended

September

30,

2020

Shares

sold

...................................

—

$—

605,114,189

$1,309,458,300

Shares

issued

in

reinvestment

of

distributions

..........

—

—

841,814,378

1,814,735,049

Shares

redeemed

...............................

—

—

(2,964,479,957)

(6,335,850,496)

Net

increase

(decrease)

..........................

—

$—

(1,517,551,390)

$(3,211,657,147)

Class

C

Class

C

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

544,659

$66,230,392

173,164,503

$402,549,828

Shares

issued

in

reinvestment

of

distributions

..........

540,211

63,145,565

94,490,169

212,205,350

Shares

redeemed

a

..............................

(1,120,069)

(136,532,031)

(790,434,803)

(1,826,361,684)

Net

increase

(decrease)

..........................

(35,199)

$(7,156,074)

(522,780,131)

$(1,211,606,506)

Year

ended

September

30,

2020

Shares

sold

...................................

1,134,871

$114,930,143

480,482,839

$1,065,708,701

Shares

issued

in

reinvestment

of

distributions

..........

395,742

38,913,324

240,566,813

526,881,379

Shares

issued

on

reorganization

(Note

12)

............

131,927

9,642,973

—

—

Shares

redeemed

a

..............................

(2,489,823)

(256,063,899)

(2,081,765,774)

(4,509,910,102)

Net

increase

(decrease)

..........................

(827,283)

$(92,577,459)

(1,360,716,122)

$(2,917,320,022)

Class

R

Class

R

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

159,963

$21,593,830

9,206,054

$20,625,940

Shares

issued

in

reinvestment

of

distributions

..........

250,543

32,588,126

2,645,026

5,738,734

Shares

redeemed

...............................

(705,454)

(94,859,122)

(17,305,868)

(38,480,846)

Net

increase

(decrease)

..........................

(294,948)

$(40,677,166)

(5,454,788)

$(12,116,172)

Year

ended

September

30,

2020

Shares

sold

...................................

438,763

$49,058,513

25,335,822

$53,679,732

Shares

issued

in

reinvestment

of

distributions

..........

215,326

23,244,460

5,933,815

12,525,310

Shares

issued

on

reorganization

(Note

12)

............

1,379

110,728

—

—

Shares

redeemed

...............................

(1,382,098)

(154,660,949)

(40,320,807)

(84,830,743)

Net

increase

(decrease)

..........................

(726,630)

$(82,247,248)

(9,051,170)

$(18,625,701)

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

121

franklintempleton.com

Semiannual

Report

Franklin

Growth

Fund

Franklin

Income

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

1,980,403

$268,360,912

54,024,209

$123,207,648

Shares

issued

in

reinvestment

of

distributions

..........

1,693,860

221,624,576

15,701,109

34,119,688

Shares

redeemed

...............................

(4,389,979)

(595,943,010)

(562,432,903)

(1,269,242,537)

Net

increase

(decrease)

..........................

(715,716)

$(105,957,522)

(492,707,585)

$(1,111,915,201)

Year

ended

September

30,

2020

Shares

sold

...................................

5,630,222

$626,797,874

105,804,359

$227,268,477

Shares

issued

in

reinvestment

of

distributions

..........

1,355,970

146,824,455

44,557,746

95,237,499

Shares

issued

on

reorganization

(Note

12)

............

8,606

694,117

—

—

Shares

redeemed

...............................

(7,043,737)

(800,670,530)

(195,996,222)

(412,086,530)

Net

increase

(decrease)

..........................

(48,939)

$(26,354,084)

(45,634,117)

$(89,580,554)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

2,035,746

$277,159,258

541,201,658

$1,227,181,743

Shares

issued

in

reinvestment

of

distributions

..........

1,944,247

254,676,846

114,823,620

251,966,198

Shares

redeemed

...............................

(3,557,117)

(482,950,555)

(676,359,250)

(1,513,295,792)

Net

increase

(decrease)

..........................

422,876

$48,885,549

(20,333,972)

$(34,147,851)

Year

ended

September

30,

2020

Shares

sold

...................................

5,569,885

$622,207,744

1,042,609,514

$2,237,381,151

Shares

issued

in

reinvestment

of

distributions

..........

1,537,666

166,713,686

258,698,629

552,732,715

Shares

issued

on

reorganization

(Note

12)

............

110,569

8,927,640

—

—

Shares

redeemed

...............................

(8,564,088)

(970,659,066)

(1,775,265,615)

(3,733,674,537)

Net

increase

(decrease)

..........................

(1,345,968)

$(172,809,996)

(473,957,472)

$(943,560,671)

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

a

...................................

57,100,736

$346,669,454

9,353,716

$186,462,963

Shares

issued

in

reinvestment

of

distributions

..........

1,994,707

12,074,655

2,741,916

53,923,239

Shares

redeemed

...............................

(54,205,534)

(328,299,234)

(8,836,341)

(176,238,903)

Net

increase

(decrease)

..........................

4,889,909

$30,444,875

3,259,291

$64,147,299

Year

ended

September

30,

2020

Shares

sold

a

...................................

165,446,175

$1,011,564,347

26,610,660

$556,423,424

Shares

issued

in

reinvestment

of

distributions

..........

2,856,704

17,452,362

1,023,288

21,318,732

Shares

redeemed

...............................

(43,482,356)

(265,930,679)

(13,227,827)

(271,930,730)

Net

increase

(decrease)

..........................

124,820,523

$763,086,030

14,406,121

$305,811,426

Class

A1

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

122

franklintempleton.com

Semiannual

Report

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Shares

Amount

Shares

Amount

Class

A1

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

19,249,211

$116,870,620

3,610,387

$71,845,569

Shares

issued

in

reinvestment

of

distributions

..........

3,973,670

24,066,553

13,316,827

262,043,547

Shares

redeemed

...............................

(40,841,211)

(247,844,491)

(17,794,204)

(354,806,919)

Net

increase

(decrease)

..........................

(17,618,330)

$(106,907,318)

(866,990)

$(20,917,803)

Year

ended

September

30,

2020

Shares

sold

...................................

52,130,054

$317,814,590

8,112,628

$168,512,761

Shares

issued

in

reinvestment

of

distributions

..........

10,091,453

61,577,188

6,824,409

142,669,167

Shares

redeemed

...............................

(100,228,230)

(610,888,651)

(28,792,932)

(590,636,615)

Net

increase

(decrease)

..........................

(38,006,723)

$(231,496,873)

(13,855,895)

$(279,454,687)

Class

C

Class

C

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

9,114,899

$54,984,930

1,157,073

$23,028,557

Shares

issued

in

reinvestment

of

distributions

..........

494,904

2,973,661

2,161,204

42,332,169

Shares

redeemed

a

..............................

(15,234,596)

(91,654,294)

(5,504,154)

(109,255,658)

Net

increase

(decrease)

..........................

(5,624,793)

$(33,695,703)

(2,185,877)

$(43,894,932)

Year

ended

September

30,

2020

Shares

sold

...................................

29,895,894

$181,312,974

4,039,119

$84,267,016

Shares

issued

in

reinvestment

of

distributions

..........

1,257,443

7,616,309

1,125,133

23,428,018

Shares

redeemed

a

..............................

(37,031,228)

(224,299,716)

(12,031,826)

(244,868,835)

Net

increase

(decrease)

..........................

(5,877,891)

$(35,370,433)

(6,867,574)

$(137,173,801)

Class

R

Class

R

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

542,569

$3,294,262

505,576

$10,030,635

Shares

issued

in

reinvestment

of

distributions

..........

38,875

235,316

336,450

6,597,040

Shares

redeemed

...............................

(1,128,123)

(6,846,296)

(983,705)

(19,694,257)

Net

increase

(decrease)

..........................

(546,679)

$(3,316,718)

(141,679)

$(3,066,582)

Year

ended

September

30,

2020

Shares

sold

...................................

2,655,852

$16,194,708

1,826,488

$38,608,635

Shares

issued

in

reinvestment

of

distributions

..........

122,169

745,216

172,297

3,588,892

Shares

redeemed

...............................

(3,641,431)

(22,236,697)

(2,311,257)

(47,298,854)

Net

increase

(decrease)

..........................

(863,410)

$(5,296,773)

(312,472)

$(5,101,327)

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

123

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

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

8,895,115

$54,247,358

1,459,690

$29,209,586

Shares

issued

in

reinvestment

of

distributions

..........

718,913

4,372,806

611,755

12,142,529

Shares

redeemed

...............................

(14,909,957)

(90,829,850)

(1,842,633)

(36,961,375)

Net

increase

(decrease)

..........................

(5,295,929)

$(32,209,686)

228,812

$4,390,740

Year

ended

September

30,

2020

Shares

sold

...................................

25,475,895

$156,361,081

4,191,939

$89,390,985

Shares

issued

in

reinvestment

of

distributions

..........

1,576,631

9,666,706

332,307

7,001,051

Shares

redeemed

...............................

(62,059,954)

(379,492,560)

(3,907,293)

(80,376,370)

Net

increase

(decrease)

..........................

(35,007,428)

$(213,464,773)

616,953

$16,015,666

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

March

31,

2021

Shares

sold

...................................

43,155,083

$262,577,338

9,301,558

$186,484,263

Shares

issued

in

reinvestment

of

distributions

..........

1,444,301

8,769,596

4,728,317

93,861,026

Shares

redeemed

...............................

(24,033,495)

(146,306,444)

(13,140,359)

(263,128,668)

Net

increase

(decrease)

..........................

20,565,889

$125,040,490

889,516

$17,216,621

Year

ended

September

30,

2020

Shares

sold

...................................

88,283,587

$542,055,380

20,381,545

$427,808,668

Shares

issued

in

reinvestment

of

distributions

..........

3,609,760

22,075,398

2,288,051

48,162,900

Shares

redeemed

...............................

(125,578,345)

(772,948,125)

(19,091,448)

(390,237,121)

Net

increase

(decrease)

..........................

(33,684,998)

$(208,817,347)

3,578,148

$85,734,447

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

b

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020

for

Classes

A,

C,

R

and

R6

of

Franklin

Focused

Growth

Fund.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Distributors,

Inc.

(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)

124

franklintempleton.com

Semiannual

Report

a.

Management

Fees

Franklin

Income

Fund

and

Franklin

Utilities

Fund

pay

an

investment

management

fee

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

to

Advisers

based

on

the

month-end

net

assets

of

each

of

the

Funds

as

follows:

Franklin

Focused

Growth

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund 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

Annualized

Fee

Rate

Net

Assets

0.700%

Up

to

and

including

$500

million

0.600%

Over

$500

million,

up

to

and

including

$1

billion

0.550%

Over

$1

billion,

up

to

and

including

$3

billion

0.500%

Over

$3

billion,

up

to

and

including

$5

billion

0.450%

In

excess

of

$5

billion

3.

Transactions

with

Affiliates

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

125

franklintempleton.com

Semiannual

Report

For

the

period

ended

March

31,

2021,

each

Fund's

annualized

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

as

follows:

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds.

The

fee

is

paid

by

Advisers

based

on

each

of

the

Funds'

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Funds.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

and

A1

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

and

A1

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Gross

effective

investment

management

fee

rate

........

0.426%

0.700%

0.425%

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Gross

effective

investment

management

fee

rate

........

0.373%

0.457%

0.449%

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Reimbursement

Plans:

Class

A

...............................

0.25%

0.25%

0.25%

Compensation

Plans:

Class

C

...............................

1.00%

1.00%

1.00%

Class

R

...............................

0.50%

0.50%

0.50%

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

126

franklintempleton.com

Semiannual

Report

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

period:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

March

31,

2021,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Reimbursement

Plans:

Class

A

...............................

0.25%

0.25%

0.25%

Class

A1

..............................

0.15%

0.15%

0.15%

Compensation

Plans:

Class

C

...............................

0.65%

0.65%

0.65%

Class

R

...............................

0.50%

0.50%

0.50%

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$2,577,756

$22,545

$839,486

CDSC

retained

...........................

$144,287

$1,027

$45,438

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$1,041,080

$67,482

$59,222

CDSC

retained

...........................

$633,984

$146,335

$48,296

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Transfer

agent

fees

........................

$3,528,235

$47,395

$4,041,240

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

127

franklintempleton.com

Semiannual

Report

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,

2021,

investments

in

affiliated

management

investment

companies

were

as

follows:

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Transfer

agent

fees

........................

$12,064,419

$1,524,435

$1,438,137

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

DynaTech

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$323,931,348

$1,939,466,001

$(1,855,048,932)

$—

$—

$408,348,417

408,348,417

$1,920

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$72,237,000

$666,459,000

$(652,588,000)

$

—

$

—

$86,108,000

86,108,000

$352

Total

Affiliated

Securities

....

$396,168,348

$2,605,925,001

$(2,507,636,932)

$—

$—

$494,456,417

$2,272

Franklin

Focused

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$2,346,648

$31,080,809

$(32,497,929)

$—

$—

$929,528

929,528

$10

Total

Affiliated

Securities

....

$2,346,648

$31,080,809

$(32,497,929)

$—

$—

$929,528

$10

Franklin

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$94,207,855

$1,060,989,490

$(1,066,528,993)

$—

$—

$88,668,352

88,668,352

$1,338

3.

Transactions

with

Affiliates

(continued)

e.

Transfer

Agent

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

128

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

respective

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Franklin

Focused

Growth

Fund

so

that

the

operating

expenses

(excluding

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

Franklin

Growth

Fund

(continued)

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$46,871,000

$244,591,000

$(273,017,000)

$

—

$

—

$18,445,000

18,445,000

$142

Total

Affiliated

Securities

....

$141,078,855

$1,305,580,490

$(1,339,545,993)

$—

$—

$107,113,352

$1,480

Franklin

Income

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$639,000,040

$14,579,572,401

$(13,748,571,471)

$—

$—

$1,470,000,970

1,470,000,970

$7,184

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$23,122,000

$242,140,000

$(250,602,000)

—

—

$14,660,000

14,660,000

$60

Total

Affiliated

Securities

....

$662,122,040

$14,821,712,401

$(13,999,173,471)

$—

$—

$1,484,660,970

$7,244

Franklin

U.S.

Government

Securities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$231,583,058

$347,182,678

$(335,222,468)

$—

$—

$243,543,268

243,543,268

$1,616

Total

Affiliated

Securities

....

$231,583,058

$347,182,678

$(335,222,468)

$—

$—

$243,543,268

$1,616

Franklin

Utilities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

$5,118,759

$311,167,852

$(298,748,966)

$—

$—

$17,537,645

17,537,645

$75

Total

Affiliated

Securities

....

$5,118,759

$311,167,852

$(298,748,966)

$—

$—

$17,537,645

$75

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

129

franklintempleton.com

Semiannual

Report

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

does

not

exceed

0.85%

based

on

the

average

net

assets

of

each

class

until

January

31,

2022.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

January

31,

2022.

Prior

to

January

31,

2021,

for

Franklin

Income

Fund

the

Class

R6

transfer

agent

fees

were

limited

to

0.02%

based

on

the

average

net

assets

of

the

class.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the period

ended

March

31,

2021 the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

September

30,

2020,

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,

2020,

Franklin

DynaTech

Fund

deferred

late-year

ordinary

losses

of

$32,663,254.

Franklin

Utilities

Fund

deferred

post-October

capital

losses

of

$2,687,886.

At

March

31,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

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

.............................

$

11,206,556

$

3,088,1

82

,

791

$

216,439,565

Long

term

.............................

—

2,3

4

0

,556,

642

368,0

57

,

078

Total

capital

loss

carryforwards

............

$11,206,556

$5,428,739,433

$584,496,643

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

a

a

a

a

Cost

of

investments

.......................

$12,233,119,449

$66,721,083

$6,044,360,885

Unrealized

appreciation

.....................

$10,980,015,152

$13,934,672

$14,467,182,265

Unrealized

depreciation

.....................

(36,909,206)

(323,799)

(35,631,105)

Net

unrealized

appreciation

(depreciation)

.......

$10,943,105,946

$13,610,873

$14,431,551,160

3.

Transactions

with

Affiliates

(continued)

g.

Waiver

and

Expense

Reimbursements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

130

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

bond

discounts

and

premiums,

corporate

actions,

equity-linked

securities,

wash

sales

and

gains

realized

on

in-

kind

shareholder

redemptions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

March

31,

2021,

were

as

follows:

At

March

31,

2021,

in

connection

with

securities

lending

transactions,

the

Franklin

DynaTech

Fund,

Franklin

Growth

Fund,

and

Franklin

Income

Fund

loaned

equity

investments

and

received

$107,019,487,

$22,410,473

and

$30,761,943

of

cash

collateral,

respectively.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

7.

Credit Risk

At

March

31,

2021,

Franklin

Income

Fund

had

19.5%

of

its

portfolio

invested

in

high

yield

securities,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

8. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

a

a

a

a

Cost

of

investments

.......................

$65,199,467,616

$5,042,998,205

$3,191,721,246

Unrealized

appreciation

.....................

$8,196,737,774

$135,977,415

$3,063,903,827

Unrealized

depreciation

.....................

(1,983,968,577)

(36,894,799)

(27,668,102)

Net

unrealized

appreciation

(depreciation)

.......

$6,212,769,197

$99,082,616

$3,036,235,725

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Purchases

..............................

$4,057,277,873

$37,485,271

$743,066,340

Sales

..................................

$1,935,058,066

$8,517,134

$1,548,486,765

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Purchases

..............................

$23,499,912,383

$2,330,242,520

$192,863,868

Sales

..................................

$26,758,367,590

$2,493,987,055

$599,537,348

5.

Income

Taxes

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

131

franklintempleton.com

Semiannual

Report

9.

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,

2021,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

10.

Other

Derivative

Information

At

March

31,

2021,

investments

in

derivative

contracts

are

reflected

in

the

Statements

of

Assets

and

Liabilities

as

follows:

For

the

period

ended

March

31,

2021,

the

effect

of

derivative

contracts

in

the

Statements

of

Operations

was

as

follows:

For

the

period

ended

March

31,

2021,

the

average

month

end

notional

amount

of

options

represented

$14,295,714.

See

Note

1(e)

regarding

derivative

financial

instruments. 

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Fund

1,780,600

ArcLight

Clean

Transition

Corp.

.................

1/28/21

$

17,806,000

$

29,909,883

4,040,405

Churchill

Capital

Corp.

IV

......................

2/22/21

60,606,075

60,606,075

756,137

Stripe,

Inc.

.................................

3/15/21

30,339,997

30,339,997

Total

Restricted

Securities

(Value

is

0.59%

of

Net

Assets)

.............

$108,752,072

$120,855,955

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Income

Fund

Equity

contracts

...........

Investments

in

securities,

at

value

$

—

Options

written,

at

value

$

1,310,000

Total

....................

$—

$1,310,000

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Income

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Equity

Contracts

...........

Written

options

$103,232,131

Written

options

$(9,329,179)

Total

....................

$103,232,131

$(9,329,179)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

132

franklintempleton.com

Semiannual

Report

11.

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,

2021,

investments

in

“affiliated

companies”

were

as

follows:

12.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

4,

2022.

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

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount

/Warrants

Held

at

End

of

Period

Investment

Income

Franklin

Growth

Fund

Non-Controlled

Affiliates

Dividends

ArcLight

Clean

Transition

Corp.

...........

$

—

$

17,806,000

a

$

—

$

—

$

12,103,883

$

29,909,883

1,780,600

$

—

Total

Affiliated

Securities

(Value

is

0.1%

of

Net

Assets)

..........

$—

$17,806,000

$—

$

—

$

12,103,883

$29,909,883

$—

Franklin

Income

Fund

Non-Controlled

Affiliates

Dividends

Chesapeake

Energy

Corp.

—

498,432,872

a

(35,522,969)

(36,662,981)

120,548,997

546,795,920

12,601,888

—

Chesapeake

Energy

Corp.,

2/09/26

..........

—

730,829,174

a

(4,228,584)

(9,549,105)

(453,538,746)

263,512,738

13,573,087

—

Chesapeake

Energy

Corp.,

Escrow

Account,

144A

—

50,000,000

a

—

—

3,093,750

53,093,750

50,000,000

456,944

CHS/Community

Health

Systems,

Inc.

......

—

104,604,374

a

—

—

30,595,626

135,200,000

10,000,000

—

Weatherford

International

plc

.............

28,665,000

—

(13,510,869)

(29,389,140)

176,670,009

162,435,000

12,750,000

—

$28,665,000

$1,383,866,420

$(53,262,422)

$

(75,601,226)

$

(122,630,364)

$1,161,037,408

—

$

456,944

Total

Affiliated

Securities

(Value

is

1.6%

of

Net

Assets)

..........

$28,665,000

$1,383,866,420

$(53,262,422)

$

(75,601,226)

$

(122,630,364)

$1,161,037,408

$456,944

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

133

franklintempleton.com

Semiannual

Report

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,

2021,

the

Funds

did

not

use

the

Global

Credit

Facility.

13.

Redemption

In-Kind

During

the

year

ended

September

30,

2019,

the

Franklin

Growth

Fund

realized

$52,349,028

of

net

gains

resulting

from

redemptions

in-kind

in

which

a

shareholder

redeemed

fund

shares

for

cash

and

securities

held

by

the

Fund.

Because

such

gains

are

not

taxable

to

the

Fund,

and

are

not

distributed

to

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

to

paid-in

capital.

14.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

March

31,

2021,

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

...................

$

77,545,200

$

—

$

—

$

77,545,200

Automobiles

..........................

417,456,250

—

—

417,456,250

Banks

...............................

17,994,000

—

—

17,994,000

Biotechnology

.........................

305,010,172

82,485,101

—

387,495,273

Capital

Markets

........................

457,050,900

—

—

457,050,900

Diversified

Consumer

Services

............

94,226,000

—

—

94,226,000

Diversified

Financial

Services

.............

9,679,630

—

—

9,679,630

Electric

Utilities

........................

155,000,500

—

—

155,000,500

Electronic

Equipment,

Instruments

&

Components

........................

127,251,200

91,151,248

—

218,402,448

Entertainment

.........................

867,980,941

96,205,078

—

964,186,019

Equity

Real

Estate

Investment

Trusts

(REITs)

.

333,003,000

—

—

333,003,000

Health

Care

Equipment

&

Supplies

.........

1,444,673,800

—

—

1,444,673,800

Health

Care

Providers

&

Services

..........

176,018,425

—

—

176,018,425

Health

Care

Technology

.................

580,897,760

—

—

580,897,760

Hotels,

Restaurants

&

Leisure

.............

16,801,836

—

—

16,801,836

Industrial

Conglomerates

................

80,668,000

—

—

80,668,000

Interactive

Media

&

Services

..............

1,763,925,791

413,773,637

—

2,177,699,428

Internet

&

Direct

Marketing

Retail

..........

2,837,840,850

196,128,907

—

3,033,969,757

12.

Credit

Facility

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

134

franklintempleton.com

Semiannual

Report

Level

1

Level

2

Level

3

Total

Franklin

DynaTech

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

IT

Services

...........................

$

2,993,617,518

$

493,105,464

$

—

$

3,486,722,982

Life

Sciences

Tools

&

Services

............

713,388,850

347,015,664

—

1,060,404,514

Media

...............................

189,075,100

—

—

189,075,100

Pharmaceuticals

.......................

236,705,000

—

—

236,705,000

Professional

Services

...................

164,378,000

—

—

164,378,000

Road

&

Rail

..........................

68,137,500

—

—

68,137,500

Semiconductors

&

Semiconductor

Equipment

.

1,773,052,500

6,381,595

—

1,779,434,095

Software

.............................

4,610,452,418

34,874,790

—

4,645,327,208

Specialty

Retail

........................

136,869,521

—

—

136,869,521

Technology

Hardware,

Storage

&

Peripherals

.

195,440,000

—

—

195,440,000

Textiles,

Apparel

&

Luxury

Goods

..........

33,222,500

—

—

33,222,500

Short

Term

Investments

...................

494,456,417

43,284,332

—

537,740,749

Total

Investments

in

Securities

...........

$21,371,819,579

$1,804,405,816

a

$—

$23,176,225,395

Franklin

Focused

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Automobiles

..........................

2,726,490

—

—

2,726,490

Capital

Markets

........................

946,734

—

—

946,734

Diversified

Financial

Services

.............

34,897

—

—

34,897

Electric

Utilities

........................

1,777,062

—

—

1,777,062

Entertainment

.........................

3,678,390

—

—

3,678,390

Equity

Real

Estate

Investment

Trusts

(REITs)

.

932,773

—

—

932,773

Food

&

Staples

Retailing

.................

1,301,004

—

—

1,301,004

Health

Care

Equipment

&

Supplies

.........

7,701,429

—

—

7,701,429

Health

Care

Technology

.................

1,771,730

—

—

1,771,730

Interactive

Media

&

Services

..............

5,534,183

2,643,004

—

8,177,187

Internet

&

Direct

Marketing

Retail

..........

9,530,942

—

—

9,530,942

IT

Services

...........................

12,385,980

2,454,337

—

14,840,317

Life

Sciences

Tools

&

Services

............

—

1,317,063

—

1,317,063

Media

...............................

1,674,592

—

—

1,674,592

Personal

Products

.....................

916,468

—

—

916,468

Professional

Services

...................

789,014

—

—

789,014

Semiconductors

&

Semiconductor

Equipment

.

7,944,982

—

—

7,944,982

Software

.............................

13,341,354

—

—

13,341,354

Short

Term

Investments

...................

929,528

—

—

929,528

Total

Investments

in

Securities

...........

$73,917,552

$6,414,404

b

$—

$80,331,956

Franklin

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

791,404,063

—

—

791,404,063

Auto

Components

......................

83,742,671

—

—

83,742,671

Beverages

...........................

570,026,747

—

—

570,026,747

Biotechnology

.........................

417,164,761

—

—

417,164,761

Building

Products

......................

265,713,454

—

—

265,713,454

Capital

Markets

........................

672,511,008

—

90,515,958

763,026,966

Chemicals

...........................

478,149,999

—

—

478,149,999

Commercial

Services

&

Supplies

...........

63,636,457

—

—

63,636,457

Construction

Materials

..................

132,171,364

—

—

132,171,364

Electric

Utilities

........................

152,732,805

—

—

152,732,805

Electrical

Equipment

....................

87,975,187

—

—

87,975,187

14.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

135

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

........................

$

575,873,284

$

—

$

—

$

575,873,284

Entertainment

.........................

316,315,624

—

—

316,315,624

Equity

Real

Estate

Investment

Trusts

(REITs)

.

193,765,880

—

—

193,765,880

Food

Products

........................

128,187,003

—

—

128,187,003

Health

Care

Equipment

&

Supplies

.........

1,204,276,023

—

—

1,204,276,023

Health

Care

Providers

&

Services

..........

206,579,253

—

—

206,579,253

Health

Care

Technology

.................

79,769,985

—

—

79,769,985

Hotels,

Restaurants

&

Leisure

.............

109,751,555

—

—

109,751,555

Interactive

Media

&

Services

..............

1,047,968,098

—

—

1,047,968,098

Internet

&

Direct

Marketing

Retail

..........

1,214,165,275

—

—

1,214,165,275

IT

Services

...........................

1,242,504,583

132,969,262

—

1,375,473,845

Life

Sciences

Tools

&

Services

............

878,445,617

118,129,107

—

996,574,724

Machinery

............................

855,310,730

—

—

855,310,730

Media

...............................

186,682,955

—

—

186,682,955

Personal

Products

.....................

26,603,468

—

—

26,603,468

Pharmaceuticals

.......................

916,444,334

—

—

916,444,334

Professional

Services

...................

516,585,483

—

—

516,585,483

Road

&

Rail

..........................

991,748,169

—

—

991,748,169

Semiconductors

&

Semiconductor

Equipment

.

1,087,967,043

—

—

1,087,967,043

Software

.............................

2,979,644,044

—

—

2,979,644,044

Technology

Hardware,

Storage

&

Peripherals

.

1,030,622,791

—

—

1,030,622,791

Textiles,

Apparel

&

Luxury

Goods

..........

249,165,693

—

—

249,165,693

Trading

Companies

&

Distributors

..........

136,014,741

—

—

136,014,741

Water

Utilities

.........................

103,258,749

—

—

103,258,749

Convertible

Preferred

Stocks

...............

—

—

30,339,997

30,339,997

Short

Term

Investments

...................

107,113,352

3,965,473

—

111,078,825

Total

Investments

in

Securities

...........

$20,099,992,248

$255,063,842

c

$120,855,955

$20,475,912,045

Franklin

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

860,204,429

—

—

860,204,429

Air

Freight

&

Logistics

...................

282,183,400

—

—

282,183,400

Banks

...............................

3,545,217,500

307,265,865

—

3,852,483,365

Beverages

...........................

1,797,480,000

—

—

1,797,480,000

Biotechnology

.........................

627,580,000

—

—

627,580,000

Capital

Markets

........................

116,490,000

—

—

116,490,000

Chemicals

...........................

323,541,000

415,479,445

—

739,020,445

Communications

Equipment

..............

672,230,000

—

—

672,230,000

Diversified

Telecommunication

Services

.....

2,374,588,351

—

—

2,374,588,351

Electric

Utilities

........................

4,239,280,000

—

—

4,239,280,000

Energy

Equipment

&

Services

.............

248,275,000

—

—

248,275,000

Equity

Real

Estate

Investment

Trusts

(REITs)

.

58,975,000

—

—

58,975,000

Food

&

Staples

Retailing

.................

135,830,000

—

—

135,830,000

Food

Products

........................

—

445,952,748

—

445,952,748

Health

Care

Providers

&

Services

..........

601,626,000

—

—

601,626,000

Health

Care

Technology

.................

24,420,000

—

—

24,420,000

Household

Products

....................

1,354,300,000

—

—

1,354,300,000

Industrial

Conglomerates

................

—

410,743,941

—

410,743,941

Insurance

............................

607,900,000

389,085,379

—

996,985,379

IT

Services

...........................

597,937,620

—

—

597,937,620

Metals

&

Mining

.......................

543,550,000

—

—

543,550,000

14.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

136

franklintempleton.com

Semiannual

Report

Level

1

Level

2

Level

3

Total

Franklin

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Multiline

Retail

........................

$

—

$

95,725

$

—

$

95,725

Multi-Utilities

..........................

2,165,993,949

—

—

2,165,993,949

Oil,

Gas

&

Consumable

Fuels

.............

4,490,035,921

—

—

4,490,035,921

Personal

Products

.....................

—

557,917,148

—

557,917,148

Pharmaceuticals

.......................

3,684,425,000

1,146,045,946

—

4,830,470,946

Road

&

Rail

..........................

404,452,350

—

—

404,452,350

Semiconductors

&

Semiconductor

Equipment

.

653,171,090

—

—

653,171,090

Specialty

Retail

........................

305,250,000

—

—

305,250,000

Tobacco

.............................

863,400,000

114,014,864

—

977,414,864

Wireless

Telecommunication

Services

.......

—

91,165,582

—

91,165,582

Equity-Linked

Securities

...................

—

14,054,298,294

—

14,054,298,294

Convertible

Preferred

Stocks

:

Banks

...............................

279,600,000

—

—

279,600,000

Capital

Markets

........................

89,977,500

—

—

89,977,500

Chemicals

...........................

24,520,000

—

—

24,520,000

Electric

Utilities

........................

1,090,381,500

—

—

1,090,381,500

Health

Care

Equipment

&

Supplies

.........

64,760,000

—

—

64,760,000

Machinery

............................

94,578,200

—

—

94,578,200

Multi-Utilities

..........................

454,192,740

—

—

454,192,740

Semiconductors

&

Semiconductor

Equipment

.

339,132,700

—

—

339,132,700

Thrifts

&

Mortgage

Finance

...............

—

79,688,392

—

79,688,392

Preferred

Stocks

........................

54,075,307

—

—

54,075,307

Warrants

..............................

263,512,738

—

—

263,512,738

Convertible

Bonds

.......................

—

116,462,500

—

116,462,500

Corporate

Bonds

........................

—

16,319,234,984

—

16,319,234,984

Index-Linked

Notes

......................

—

85,046,250

—

85,046,250

Senior

Floating

Rate

Interests

...............

—

23,741,566

—

23,741,566

U.S.

Government

and

Agency

Securities

.......

—

532,764,648

—

532,764,648

Asset-Backed

Securities

..................

—

59,621,250

—

59,621,250

Mortgage-Backed

Securities

................

—

377,998,328

—

377,998,328

Escrows

and

Litigation

Trusts

...............

—

53,093,750

—

53,093,750

Short

Term

Investments

...................

1,484,660,970

16,101,943

—

1,500,762,913

Total

Investments

in

Securities

...........

$35,817,728,265

$35,595,818,548

d

$—

$71,413,546,813

Liabilities:

Other

Financial

Instruments:

Options

written

..........................

$

1,310,000

$

—

$

—

$

1,310,000

$—

$—

$—

$—

Franklin

U.S.

Government

Securities

Fund

Assets:

Investments

in

Securities:

e

U.S.

Government

and

Agency

Securities

.......

—

19,837,246

—

19,837,246

Mortgage-Backed

Securities

................

—

4,878,700,307

—

4,878,700,307

Short

Term

Investments

...................

243,543,268

—

—

243,543,268

Total

Investments

in

Securities

...........

$243,543,268

$4,898,537,553

$—

$5,142,080,821

Franklin

Utilities

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Diversified

Telecommunication

Services

.....

—

59,746,976

—

59,746,976

Electric

Utilities

........................

3,626,339,035

—

—

3,626,339,035

Gas

Utilities

..........................

167,312,500

—

—

167,312,500

14.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

137

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. 

15.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

16.

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

Utilities

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Independent

Power

and

Renewable

Electricity

Producers

..........................

$

44,200,000

$

—

$

—

$

44,200,000

Multi-Utilities

..........................

1,883,182,741

176,089,159

—

2,059,271,900

Oil,

Gas

&

Consumable

Fuels

.............

105,458,000

25,079,076

—

130,537,076

Water

Utilities

.........................

78,312,500

38,329,623

—

116,642,123

Corporate

Bonds

........................

—

6,369,716

—

6,369,716

Short

Term

Investments

...................

17,537,645

—

—

17,537,645

Total

Investments

in

Securities

...........

$5,922,342,421

$305,614,550

f

$—

$6,227,956,971

a

Includes

foreign

securities

valued

at

$1,761,121,484,

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.

b

Includes

foreign

securities

valued

at

$6,414,404,

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

$251,098,369,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

d

Includes

foreign

securities

valued

at

$3,877,670,918,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

e

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

f

Includes

foreign

securities

valued

at

$239,497,858,

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.

14.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

138

franklintempleton.com

Semiannual

Report

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

LIBOR

London

Inter-Bank

Offered

Rate

NYRS

New

York

Registry

Shares

Franklin

Custodian

Funds

Shareholder

Information

139

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

CUSTODIAN

FUNDS

Franklin

Dynatech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

(each

a

Fund)

At

a

meeting

held

on

February

23,

2021

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Custodian

Funds

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Funds.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Franklin

Custodian

Funds

Shareholder

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140

franklintempleton.com

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Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

on

expanding

the

distribution

opportunities

for

all

funds

in

the

FT

family

of

funds.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

November

30,

2020.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

considered

the

performance

returns

for

the

Franklin

Income

Fund

in

comparison

to

the

performance

returns

of

a

customized

peer

group

(Performance

Customized

Peer

Group)

selected

by

the

Manager.

The

Board

further

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

DynaTech

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

multi-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

and

in

the

first

quintile

(best)

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Focused

Growth

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

large-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

and

in

the

first

quintile

(best)

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Growth

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

multi-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

discussed

the

Fund’s

performance

with

management

and

management

explained

that

the

Fund

is

a

conservatively

managed

growth

fund

relative

to

other

multi-cap

growth

funds,

which

outperformed

the

Fund

and

had

higher

exposure

to

information

technology,

communication

services

and

consumer

discretionary.

Management

further

explained

that

the

primary

detractor

from

the

Fund’s

performance

relative

to

peers

was

the

Fund’s

higher

weighting

in

industrial

stocks

which

had

been

particularly

weak

during

the

one-year

period.

The

Board

noted

management’s

steps

to

address

the

underperformance

of

the

Fund,

including

specific

changes

to

the

Fund’s

portfolio

holdings.

The

Board

also

noted

that,

while

below

the

median,

the

Fund’s

one-

and

three-year

annualized

total

return

was

28.23%

and

17.13%,

respectively.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

Income

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

flexible

portfolio

funds.

The

Performance

Customized

Peer

Group

for

the

Fund

included

funds

sorted

by

trailing

12-month

yield

and

set

to

be

top

quartile

(highest

yield).

The

Board

noted

that

the

Fund’s

annualized

income

returns

for

the

one-,

three-,

five-

and

10-year

periods

were

above

the

medians

and

in

the

first

quintile

(best)

of

its

Performance

Universe

and

Performance

Customized

Peer

Group.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-

,

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

10-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

further

noted

that

the

Fund’s

annualized

total

return

for

the

three-year

period

was

below

the

median

of

its

Performance

Customized

Peer

Group,

but

for

the

one-,

five-

and

10-

year

periods

was

above

the

median

of

its

Performance

Customized

Peer

Group.

The

Board

considered

that

the

income-oriented

investment

objective

of

the

Fund

is

the

primary

focus

for

the

Fund’s

portfolio

management

team

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

the

Fund’s

peers

on

an

annualized

income

return

basis

is

consistent

with

investor

expectations

and

the

Fund’s

investment

goals.

Given

the

Fund’s

income-oriented

investment

objective,

the

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

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Funds

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Franklin

U.S.

Government

Securities

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

Government

National

Mortgage

Association

(Ginnie

Mae)

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

considered

that

the

income-oriented

investment

objective

of

the

Fund

is

the

primary

focus

for

the

Fund’s

portfolio

management

team

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

the

Fund’s

peers

on

an

annualized

income

return

basis

is

consistent

with

investor

expectations

and

the

Fund’s

investment

goals.

Given

the

Fund’s

income-oriented

investment

objective

and

conservative

policy

of

investing

substantially

all

of

its

assets

in

Ginnie

Mae

obligations,

the

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Utilities

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

utility

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

discussed

the

Fund’s

annualized

total

return

performance

with

management

and

management

explained

that

the

Fund

invests

at

least

80%

of

its

net

assets

in

the

securities

of

public

utilities

companies,

whereas

peers

have

less

exposure

to

the

utilities

sector

and

benefitted

from

the

performance

of

their

non-utilities

sector

holdings.

The

Board

noted

management’s

steps

to

address

the

underperformance

of

the

Fund,

including

making

specific

changes

to

the

Fund’s

portfolio

holdings,

and

that

the

Fund

had

positive

annualized

total

return

for

all

reporting

periods.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A1

shares

for

the

Franklin

Income

Fund,

Franklin

U.S.

Government

Securities

Fund

and

Franklin

Utilities

Fund

and

for

Class

A

shares

for

the

Franklin

DynaTech

Fund

and

Franklin

Growth

Fund

and

for

each

other

fund

in

the

applicable

Expense

Group.

In

addition,

the

actual

total

expense

ratio

was

shown

for

Advisor

Class

shares

for

the

Franklin

Focused

Growth

Fund

and

for

Class

K6

shares,

Class

I

shares,

Class

N

Shares,

Class

P

shares

or

Institutional

Class

shares

for

each

other

fund

in

the

Fund’s

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

Franklin

DynaTech

Fund,

Franklin

Growth

Fund,

Franklin

Income

Fund

and

Franklin

Utilities

Fund

–

The

Expense

Group

for

each

of

the

Franklin

DynaTech

Fund

and

Franklin

Growth

Fund

included

the

respective

Fund

and

10

other

multi-cap

growth

funds.

The

Expense

Group

for

the

Franklin

Income

Fund

included

the

Fund

and

nine

other

flexible

portfolio

funds.

The

Expense

Group

for

the

Franklin

Utilities

Fund

included

the

Fund

and

six

other

utility

funds.

The

Board

noted

that

the

Management

Rates

and

actual

total

expense

ratios

for

the

Funds

were

below

the

medians

of

their

respective

Expense

Groups.

The

Board

concluded

that

the

Management

Rates

charged

to

the

Funds

are

reasonable.

Franklin

Focused

Growth

Fund

–

The

Expense

Group

for

the

Fund

included

the

Fund

and

12

other

large-cap

growth

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

5

basis

points

above

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

actual

total

expense

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ratio

for

the

Fund

was

7.5

basis

points

above

the

median

of

its

Expense

Group

and

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

U.S.

Government

Securities

Fund

–

The

Expense

Group

for

the

Fund

included

the

Fund,

five

other

Ginnie

Mae

funds,

and

six

US

mortgage

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

less

than

2

basis

points

above

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

actual

total

expense

ratio

for

the

Fund

was

below

the

median

and

in

the

first

quintile

(least

expensive)

of

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

Additionally,

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up

front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

a

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Franklin

Focused

Growth

Fund

does

not

have

an

asset

size

that

would

likely

enable

the

Fund

to

achieve

economies

of

scale.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Franklin

Custodian

Funds

Shareholder

Information

143

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

Statement

of

Investments

The

Trust

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FCF

S

05/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Custodian

Funds

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.  N/A

Item 5. Audit Committee

 

of Listed Registrants.  N/A

Item 6. Schedule of Investments.          N/A

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.   N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                         N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers. N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls

. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                             N/A

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section302

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN

CUSTODIAN FUNDS

By _  S\Matthew T. Hinkle ______________________

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  May 26, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By __ S\Matthew T. Hinkle _____________________

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  May 26, 2021

By ___S\Robert G. Kubilis __________________

      Robert G. Kubilis

      Chief Financial Officer and Chief Accounting Officer

Date  May 26, 2021