Franklin Income Fund (FRIAX) 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)

Alison Baur, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000

Date of fiscal year end: 9/30

Date of reporting period: 3/31/22

Item 1. Reports to Stockholders.

a.)

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

b.)

A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report.

Not Applicable

.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Custodian

Funds

March

31,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Semiannual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

March

31,

2022,

the

U.S.

economy

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

growing

business

confidence.

Although

investors

became

concerned

that

new,

swiftly

spreading

COVID-19

variants

could

hinder

the

economic

recovery,

growth

accelerated

in

2021’s

fourth

quarter

as

the

reopening

of

businesses,

widespread

COVID-19

vaccinations

and

federal

assistance

programs

continued

to

boost

consumer

spending.

Inflation

remained

elevated

during

the

reporting

period,

given

supply

and

demand

imbalances

related

to

the

pandemic,

higher

energy

prices

exacerbated

by

Russia’s

invasion

of

Ukraine,

and

broader

price

pressures.

During

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

encourage

ongoing

U.S.

economic

activity,

continued

quantitative

easing

measures

to

bolster

credit

markets.

However,

the

Federal

Reserve

decreased

its

monthly

asset

purchases

starting

in

November

2021,

increased

its

tapering

in

subsequent

months

and

ended

purchases

in

March

2022.

In

support

of

its

goal

of

achieving

maximum

employment

and

returning

annual

inflation

to

2%

over

the

long

term,

the

Federal

Reserve

raised

the

federal

funds

rate

by

0.25%,

from

a

level

of

0.25%

to

0.50%

at

its

March

meeting.

The

10-year

U.S.

Treasury

yield

was

1.52%

on

September

30,

2021,

and

it

increased

to

2.32%

by

the

end

of

March

2022.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

rose

5.17%,

(the

index

increasing

from

4,307.54

to

4,530.41).

1

,2

Reflecting

the

rise

in

interest

rates,

investment-

grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-5.92%

total

return

(an

index

decrease

from

2,352.55

to

2,215.38),

which

includes

reinvestment

of

interest

income.

3

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

We

believe

active,

professional

investment

management

serves

investors

well.

We

also

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-positioned

for

the

years

ahead.

Franklin

Custodian

Funds’

semiannual

report,

covering

Franklin

DynaTech

Fund,

Franklin

Focused

Growth

Fund,

Franklin

Growth

Fund,

Franklin

Income

Fund,

Franklin

U.S.

Government

Securities

Fund

and

Franklin

Utilities

Fund,

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Custodian

Funds

This

letter

reflects

our

analysis

and

opinions

as

of

March

31,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2022,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

its

total

return,

which

was:

S&P

500

+5.92%

(index

total

return

resulting

in

an

increase

from

8,994.83

to

9,527.46).

3.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

DynaTech

Fund

4

Franklin

Focused

Growth

Fund

10

Franklin

Growth

Fund

16

Franklin

Income

Fund

21

Franklin

U.S.

Government

Securities

Fund

28

Franklin

Utilities

Fund

33

Financial

Highlights

and

Schedules

of

Investments

38

Financial

Statements

107

Notes

to

Financial

Statements

117

Shareholder

Information

143

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

+5.92%

total

return

for

the

six

months

ended

March

31,

2022.

1

Stocks

benefited

from

the

continued

economic

recovery,

as

strong

household

balance

sheets

helped

consumers

drive

growth.

However,

elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1982.

Russia’s

invasion

of

Ukraine

late

in

the

six-month

period

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

Rising

interest

rates

also

pressured

stocks,

as

borrowing

costs

began

to

increase

from

historically

low

levels.

The

U.S.

economy

continued

to

recover,

and

gross

domestic

product

growth

was

robust

in

the

fourth

quarter

of

2021

as

strong

consumer

spending

and

business

investment

in

growing

inventories

supported

the

economy.

However,

rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

4.7%

in

September

2021

to

3.6%

in

March

2022

as

job

openings

increased,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

to

a

range

of

0.25%–0.50%,

the

first

such

increase

since

2018.

The

Fed

noted

in

its

March

2022

meeting

that

strength

in

the

U.S.

job

market

and

continued

inflationary

pressure,

exacerbated

by

the

war

in

Ukraine,

meant

it

anticipated

making

further

increases

to

the

federal

funds

target

rate.

Furthermore,

the

Fed

said

it

expected

to

begin

reducing

its

bond

holdings

at

a

future

meeting.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

March

31,

2022.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Semiannual

Report

Franklin

DynaTech

Fund

This

semiannual

report

for

Franklin

DynaTech

Fund

covers

the

period

ended

March

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

by

investing

primarily

in

equity

securities

of

companies

that

emphasize

innovation

and

new

technologies,

have

superior

management

and

that

benefit

from

new

industry

conditions

in

the

dynamically

changing

global

economy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-16.80%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Russell

1000

®

Growth

Index,

which

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

1000

®

Index

companies

with

relatively

higher

price-

to-book

ratios

and

higher

forecasted

growth

rates,

posted

a

cumulative

total

return

of

+1.54%.

1

Also

for

comparison,

the

broad

U.S.

stock

market,

as

measured

by

the

Standard

&

Poor’s

500

Index

(S&P

500),

posted

a

+5.92%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

7

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry

to

target

leaders

and

emerging

leaders.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

Manager’s

Discussion

During

the

six

months

under

review,

the

Fund’s

prolonged

stretch

of

gains

reversed

into

significant

and

widespread

losses,

with

most

of

the

selling

occurring

in

November

2021

through

February

2022

(while

October

2021

and

March

2022

were

up

months

for

the

Fund).

In

general,

many

investors

expressed

their

valuation

concerns

by

divesting

innovative

and

high-tech

companies

that

held

the

potential

to

disrupt

lots

of

businesses

in

the

future

but

offered

little

or

no

earnings

in

the

present.

The

Fund

was

broadly

undermined

by

an

investment

style

rotation

in

the

equity

market

as

U.S.

and

global

growth

stocks,

whose

valuations

were

negatively

impacted

by

rising

interest

rates,

declined

substantially

more

than

their

value-oriented

counterparts.

Portfolio

Composition

3/31/22

%

of

Total

Net

Assets

Software

25.1%

Semiconductors

&

Semiconductor

Equipment

14.1%

IT

Services

9.2%

Internet

&

Direct

Marketing

Retail

7.8%

Life

Sciences

Tools

&

Services

7.3%

Health

Care

Equipment

&

Supplies

6.8%

Interactive

Media

&

Services

6.3%

Automobiles

3.0%

Capital

Markets

2.9%

Pharmaceuticals

1.8%

Health

Care

Technology

1.7%

Electronic

Equipment,

Instruments

&

Components

1.6%

Technology

Hardware,

Storage

&

Peripherals

1.5%

Electric

Utilities

1.2%

Other

8.4%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

Frank

Russell

Company

is

the

source

and

owner

of

the

trademarks,

service

marks

and

copyrights

related

to

the

Russell

Indexes.

Russell

®

is

a

trademark

of

Frank

Russell

Company.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

43

.

Franklin

DynaTech

Fund

5

franklintempleton.com

Semiannual

Report

Despite

the

headwinds,

the

Fund

continued

to

focus

its

investments

within

innovation,

believing

that

this

is

one

way

to

potentially

outperform

the

market

over

the

long-

term.

Innovation

rarely

adopts

or

performs

linearly.

Instead,

innovation

is

often

spastic,

violent

and

filled

with

stories

of

tremendous

breakthroughs

as

well

as

failure,

in

our

view.

Platforms

can

move

forward

faster

than

we

expect

as

well

as

regress,

and

the

goal

in

owning

a

portfolio

of

innovative

companies

is

to

level

this

movement

out.

Throughout

the

period,

we

continued

to

believe

that

investing

in

the

merits

of

a

core

strategy

that

focuses

on

long-term

secular

growth

companies

with

compounding

revenue,

earnings

and

free

cash

flow—and

with

strong

and

sustainable

competitive

advantages

due

to

changes

in

the

economy

and

the

path

of

innovation

over

the

next

three-,

five-

and

10-year

periods—

remains

sound.

Eight

out

of

11

equity

sector

allocations

were

net

detractors

from

performance

in

absolute

terms,

including

double-digit

percentage

losses

for

three

of

our

largest

allocations:

information

technology

(IT),

communication

services

and

health

care;

when

combined,

these

holdings

comprised

a

significant

portion

of

the

overall

portfolio

at

the

beginning

of

the

period,

so

their

impact

on

overall

results

was

considerable.

Given

investors’

flight

from

growth-

oriented

equities,

the

Fund’s

broad-based

declines

among

entertainment

and

interactive

media

companies

in

the

communication

services

sector,

as

well

as

services

and

software

companies

in

the

IT

sector,

were

key

areas

of

weakness,

as

was

a

much

smaller

portion

of

the

portfolio

dedicated

to

life

sciences

tools

and

services

companies

in

the

health

care

sector.

Among

these

core

sector

allocations,

communication

services

posted

the

largest

overall

declines

by

far.

Within

the

group,

entertainment

industry

companies

such

as

Sea,

a

Singapore-based

consumer

internet

company

and

Roblox,

an

online

game

platform

and

metaverse-based

game

creator

were

standout

detractors.

Within

IT,

a

host

of

internet

commerce-enabling

and

payment

platform

companies

were

among

the

notable

detractors—including

Shopify,

PayPal

Holdings

(not

held

at

period-end),

Twilio,

Block

(formerly

Square,

not

held

at

period-end)

and

Adyen—though

nearly

all

of

our

positions

in

this

industry

suffered

double-digit

percentage

declines

as

they

collectively

shed

about

a

third

of

their

equity

value.

Among

software

developers,

absolute

returns

were

hindered

foremost

by

DocuSign,

an

e-signature

and

electronic

contract

management

company

(not

held

at

period-end),

HubSpot,

a

platform

for

inbound

marketing,

sales,

and

customer

service,

and

Intuit,

a

financial

and

tax

preparation

software

company.

Within

health

care,

the

Fund

was

invested

in

19

different

life

sciences

tools

and

services

industry

companies,

all

but

one

of

which

traded

lower

over

the

span

of

October

2021

to

March

2022.

The

largest

detractors

among

them

included

Repligen,

which

develops

materials

used

in

the

manufacture

of

biological

drugs,

and

China-based

contract

research

organization

Wuxi

Biologics

Cayman

(not

held

at

period-end).

All

but

one

of

our

positions

in

the

biotechnology

industry

also

came

under

substantial

selling

pressure,

none

more

so

than

Moderna,

a

biotechnology

company

that

develops

therapeutics

and

vaccines

(not

held

at

period-

end),

and

Natera,

a

diagnostic

company

that

develops

and

commercializes

molecular

testing

services

(not

held

at

period-end).

Most

of

the

Fund’s

remaining

assets

were

dedicated

to

consumer

discretionary

companies,

which

also

suffered

widespread

losses.

In

particular,

all

but

one

out

of

10

stocks

in

the

internet

retail

space

were

out

of

favor

including

top

detractor

MercadoLibre,

which

has

a

commanding

presence

in

Latin

American

e-commerce

and

fintech.

Elsewhere

in

the

portfolio,

our

much

smaller

exposures

to

financial

services,

industrials,

materials

and

consumer

staples

(allocation

eliminated

by

period-end)

also

sold

off.

Conversely,

the

declines

described

above

were

partially

offset

by

minimal

contributions

from

our

limited

holdings

in

the

utilities,

real

estate

and

energy

sectors

(comprising

a

very

small

portion

of

total

net

assets

at

period-end).

The

only

notable

contributor

within

this

group

was

NextEra

Energy

in

the

utilities

sector,

which

operates

as

the

world's

largest

Top

10

Holdings

3/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Amazon.com,

Inc.

6.8%

Internet

&

Direct

Marketing

Retail,

United

States

Microsoft

Corp.

5.2%

Software,

United

States

Alphabet,

Inc.

4.7%

Interactive

Media

&

Services,

United

States

NVIDIA

Corp.

4.6%

Semiconductors

&

Semiconductor

Equipment,

United

States

Tesla,

Inc.

3.0%

Automobiles,

United

States

ServiceNow

,

Inc.

2.6%

Software,

United

States

Thermo

Fisher

Scientific,

Inc.

2.5%

Life

Sciences

Tools

&

Services,

United

States

Danaher

Corp.

2.5%

Life

Sciences

Tools

&

Services,

United

States

Mastercard

,

Inc.

2.4%

IT

Services,

United

States

ASML

Holding

NV

2.1%

Semiconductors

&

Semiconductor

Equipment,

Netherlands

Franklin

DynaTech

Fund

6

franklintempleton.com

Semiannual

Report

generator

of

renewable

energy

from

the

wind

and

sun

and

a

world

leader

in

battery

storage.

All

of

the

Fund’s

other

key

contributors

were

individual

holdings

that

reduced

the

losses

within

sectors

that

were

net

detractors.

However,

it

was

a

relatively

short

list

with

a

combined

positive

impact

that

was

dwarfed

by

the

previously

noted

detractors.

They

tended

to

be

profitable

companies

that

were

dealing

with

robust

demand,

including

semiconductor

manufacturer’s

NVIDIA

and

GLOBALFOUNDRIES,

and

SiTime,

a

silicon

timing

systems

solution

developer,

and

large,

established

tech

giants

such

as

Microsoft,

Apple

and

Alphabet,

within

the

IT

sector.

Some

of

the

other

outliers

to

the

upside

included

electric

vehicle

maker

Tesla

within

the

automobiles

industry,

managed

healthcare

and

insurance

provider

UnitedHealth

Group,

within

health

care

providers

and

services,

Inspire

Medical

Systems,

a

developer

of

implantable

neurostimulation

systems

to

treat

obstructive

sleep

apnea

and

STERIS,

a

manufacturer

of

medical

and

surgical

equipment,

within

health

care

technology

specialists

and

equipment

makers,

and

select

software

makers

including

cybersecurity

company

Palo

Alto

Networks

and

Synopsys,

a

developer

of

software-

based

designing

solutions

for

the

semiconductor

industry.

Thank

you

for

your

continued

participation

in

Franklin

Dynatech

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Matthew

J.

Moberg,

CPA

Rupert

H.

Johnson,

Jr.

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

March

31,

2022

Franklin

DynaTech

Fund

7

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

3/31/22

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3

6-Month

-16.80%

-21.37%

1-Year

-4.27%

-9.53%

5-Year

+154.23%

+19.16%

10-Year

+361.05%

+15.86%

Advisor

6-Month

-16.69%

-16.69%

1-Year

-4.03%

-4.03%

5-Year

+157.44%

+20.82%

10-Year

+372.77%

+16.81%

See

page

8

for

Performance

Summary

footnotes.

Franklin

DynaTech

Fund

Performance

Summary

8

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Stocks

historically

have

outperformed

other

asset

classes

over

the

long

term,

but

tend

to

fluctuate

more

dramatically

over

the

short

term.

Investments

in

fast-growing

industries,

like

the

technology

and

health

care

sectors

(which

have

historically

been

volatile)

could

result

in

increased

price

fluctuation,

especially

over

the

short

term,

due

to

the

rapid

pace

of

product

change

and

development

and

changes

in

government

regulation

of

companies

emphasizing

scientific

or

technological

advancement

or

regulatory

approval

for

new

drugs

and

medical

instruments.

The

Fund

may

also

invest

in

small-

and

mid-capitalization

companies,

which

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

4.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(10/1/21–3/31/22)

Share

Class

Long-Term

Capital

Gain

A

$2.2173

C

$2.2173

R

$2.2173

R6

$2.2173

Advisor

$2.2173

Total

Annual

Operating

Expenses

4

Share

Class

A

0.79%

Advisor

0.54%

Your

Fund’s

Expenses

Franklin

DynaTech

Fund

9

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

an

d

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/21

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$832.01

$3.53

$1,021.08

$3.89

0.77%

C

$1,000

$828.93

$6.94

$1,017.34

$7.66

1.52%

R

$1,000

$831.02

$4.67

$1,019.83

$5.15

1.02%

R6

$1,000

$833.41

$2.03

$1,022.71

$2.24

0.44%

Advisor

$1,000

$833.10

$2.38

$1,022.33

$2.63

0.52%

10

franklintempleton.com

Semiannual

Report

Franklin

Focused

Growth

Fund

This

semiannual

report

for

Franklin

Focused

Growth

Fund

covers

the

period

ended

March

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

by

investing

in

an

equity

securities

portfolio

of

approximately

20–50

companies

that

we

believe

offers

a

compelling

trade-off

between

growth

opportunity,

business

and

financial

risk

and

valuation.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-13.51%

cumulative

total

return

for

the

six

months

under

review.

1

In

comparison,

the

Russell

1000

®

Growth

Index,

which

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

1000

®

Index

companies

with

relatively

higher

price-

to-book

ratios

and

higher

forecasted

growth

rates,

posted

a

cumulative

total

return

of

+1.54%.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

13

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry

to

target

leaders

and

emerging

leaders.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

Manager’s

Discussion

During

the

six

months

under

review,

the

Fund’s

absolute

returns

were

hindered

by

a

sustained

and

widespread

equity

selloff

for

technology,

media

and

telecommunications

companies

foremost.

This

trend

was

felt

most

heavily

in

the

Fund’s

information

technology

(IT)

and

communication

services

sector

allocations,

which

comprised

well

over

half

of

the

portfolio’s

composition.

In

general,

many

investors

expressed

their

valuation

concerns

by

divesting

many

innovative

companies

that

held

the

potential

to

disrupt

lots

of

businesses

in

the

future

but

offered

little

or

no

earnings

in

the

present.

The

Fund

was

also

broadly

undermined

by

the

equity

market’s

investment-style

rotation

as

growth

stocks,

whose

valuations

were

negatively

impacted

by

rising

interest

rates,

declined

substantially

more

than

their

value-oriented

counterparts.

In

this

environment,

seven

out

of

11

equity

sector

allocations

were

net

detractors

from

performance

in

absolute

terms,

while

the

four

that

advanced,

consumer

staples,

utilities,

real

estate

and

energy

had

only

a

minor

positive

impact

on

overall

results

as

they

averaged

a

smaller

portion

of

total

net

assets.

Portfolio

Composition

3/31/22

%

of

Total

Net

Assets

Software

21.4%

Semiconductors

&

Semiconductor

Equipment

16.1%

Internet

&

Direct

Marketing

Retail

11.1%

IT

Services

8.4%

Health

Care

Equipment

&

Supplies

7.9%

Automobiles

6.0%

Interactive

Media

&

Services

5.7%

Life

Sciences

Tools

&

Services

5.1%

Food

&

Staples

Retailing

4.7%

Electric

Utilities

4.1%

Capital

Markets

2.3%

Equity

Real

Estate

Investment

Trusts

(REITs)

2.1%

Personal

Products

1.3%

Aerospace

&

Defense

1.1%

Other

4.2%

Short-Term

Investments

&

Other

Net

Assets

(1.5)%

1.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

53

.

Franklin

Focused

Growth

Fund

11

franklintempleton.com

Semiannual

Report

More

than

half

of

the

Fund’s

overall

losses

occurred

in

the

IT

sector,

where

our

IT

services

and

software

holdings

suffered

steep,

double-digit

percentage

declines.

A

collection

of

e-commerce

business,

transaction,

and

payment

platform

companies

were

among

the

notable

detractors,

including

Shopify,

Adyen,

PayPal

Holdings

(not

held

at

period-end)

and

Block

(formerly

Square,

not

held

at

period-end),

and

they

collectively

shed

more

than

a

third

of

their

equity

value.

Among

software

developers,

absolute

results

were

hindered

mainly

by

HubSpot,

a

platform

for

inbound

marketing,

sales,

and

customer

service,

Procore

Technologies,

a

cloud-

based

construction

management

platform,

DocuSign,

an

e-signature

and

electronic

contract

management

company

(not

held

at

period-end),

and

Adobe,

a

specialized

software

for

content

creation

and

publication

company

(not

held

at

period-end).

Overall,

the

Fund

had

a

smaller

exposure

to

communication

services

companies.

However,

they

had

a

disproportionately

negative

impact

on

returns

and

posted

the

largest

overall

decline

of

any

sector

allocation.

Within

the

group,

entertainment

industry

companies

such

as

Sea

Limited,

a

Singapore-based

internet

company

and

Roblox,

an

online

game

platform

and

metaverse-based

game

creator

(not

held

at

period-end),

were

standout

detractors,

as

were

social

media

platforms

like

Meta

Platforms

(not

held

at

period-end)

and

Snap

(not

held

at

period-end).

To

a

lesser

extent,

the

Fund

also

experienced

widespread

losses

in

the

health

care

sector

as

all

but

one

of

our

related

holdings

traded

lower.

The

largest

detractors

among

them

included

China-based

contract

research

organization

Wuxi

Biologics

Cayman

(not

held

at

period-end)

and

Repligen,

which

develops

materials

used

in

the

manufacture

of

biological

drugs.

Our

positions

in

technology-focused

health

care

equipment

and

supplies

stocks

also

came

under

substantial

selling

pressure

as

Veeva

Systems,

an

R&D

cloud

platform

for

pharmaceutical

and

life

sciences

industry

applications,

IDEXX

Laboratories,

a

manufacturer

of

animal

health

products,

and

Intuitive

Surgical,

a

manufacturer

of

robotic

technologies

used

for

surgeries,

pulled

back

following

prolonged

rallies

in

2020

and

2021.

Elsewhere

in

the

portfolio,

weakness

was

evident

in

the

consumer

discretionary

sector

as

MercadoLibre,

which

has

a

commanding

presence

in

Latin

American

e-commerce

and

fintech,

and

electric

vehicle

manufacturer

Rivian

Automotive

(not

held

at

period-end)

sold

off

substantially.

Conversely,

the

declines

described

above

were

partially

offset

by

an

overall

gain

in

the

consumer

staples

sector

that

was

centered

on

a

big

rally

for

Costco

Wholesale,

a

membership-only

big

box

retailer.

Our

solitary

investment

in

the

utilities

sector,

NextEra

Energy,

which

operates

as

the

world's

largest

generator

of

renewable

energy

from

the

wind

and

sun

and

a

world

leader

in

battery

storage,

was

a

modest

contributor.

Individual

gains

in

the

real

estate

and

energy

sectors

came

from

SBA

Communications,

a

tech-focused

real

estate

investment

trust

and

global

oilfield

services

provider

Baker

Hughes.

All

of

the

Fund’s

other

key

contributors

were

individual

holdings

that

reduced

the

losses

within

sectors

that

were

net

detractors.

However,

it

was

a

relatively

short

list

with

a

combined

positive

impact

that

was

dwarfed

by

the

previously

noted

detractors.

They

tended

to

be

profitable

companies

that

were

dealing

with

robust

demand,

including

semiconductor

manufacturer’s

NVIDIA

and

Taiwan

Semiconductor

Manufacturing

(not

held

at

period-end),

and

large,

established

tech

giants

such

as

Microsoft

and

Alphabet.

Some

of

the

other

outliers

to

the

upside

included

electric

vehicle

maker

Tesla

within

the

automobiles

industry,

software

industry

standout

Synopsys,

a

developer

of

software

based

designing

solutions

for

the

semiconductor

industry,

Chinese

multinational

technology

and

entertainment

conglomerate

Tencent

Holdings

(not

held

at

period-end),

and

Amazon.com

in

the

internet

retail

industry.

Although

from

a

wider

perspective,

investors

have

embraced

Amazon

as

a

multinational

technology

company

focused

not

just

on

e-commerce

but

also

on

its

rapidly

expanding

business

in

cloud

computing,

digital

streaming

and

artificial

intelligence.

Notably,

we

eliminated

the

Fund’s

exposure

to

China-based

companies

over

the

span

of

October

2021

through

March

2022,

as

we

found

more

compelling

investment

opportunities

Top

10

Holdings

3/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Microsoft

Corp.

10.5%

Software,

United

States

Amazon.com,

Inc.

10.1%

Internet

&

Direct

Marketing

Retail,

United

States

NVIDIA

Corp.

8.1%

Semiconductors

&

Semiconductor

Equipment,

United

States

Tesla,

Inc.

6.0%

Automobiles,

United

States

Alphabet,

Inc.

5.7%

Interactive

Media

&

Services,

United

States

Costco

Wholesale

Corp.

4.7%

Food

&

Staples

Retailing,

United

States

NextEra

Energy,

Inc.

4.1%

Electric

Utilities,

United

States

Mastercard,

Inc.

4.0%

IT

Services,

United

States

Danaher

Corp.

3.9%

Life

Sciences

Tools

&

Services,

United

States

ASML

Holding

NV

3.9%

Semiconductors

&

Semiconductor

Equipment,

Netherlands

Franklin

Focused

Growth

Fund

12

franklintempleton.com

Semiannual

Report

that

were

not

tied

to

Beijing’s

increasingly

stringent

and

opaque

regulatory

regime.

Thank

you

for

your

participation

in

Franklin

Focused

Growth

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Matthew

J.

Moberg,

CPA

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

March

31,

2022

Franklin

Focused

Growth

Fund

13

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

3/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-13.51%

-18.26%

1-Year

0.00%

-5.50%

5-Year

+150.93%

+18.85%

Since

Inception

(4/13/16)

5

+192.42%

+12.79%

Advisor

6-Month

-13.38%

-13.38%

1-Year

+0.26%

+0.26%

5-Year

+154.17%

+20.51%

Since

Inception

(4/13

/16)

5

+196.91%

+20.02%

See

page

14

for

Performance

Summary

footnotes.

Franklin

Focused

Growth

Fund

Performance

Summary

14

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramati-

cally

if

the

company

fails

to

meet

those

projections.

The

Fund

may

also

invest

in

small-

and

mid-capitalization

companies,

which

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility,

and

political

or

social

instability;

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

contractually

guaranteed

through

1/31/23.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Effective

2/14/20,

the

Fund

began

offering

Class

A

shares.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

2/14/20,

a

restated

figure

is

used

based

on

the

Fund’s

Advisor

Class

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A

and

Advisor

Class;

and

(b)

for

periods

after

2/14/20,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

5.

Since

Inception

returns

are

based

on

the

performance

inception

date

of

4/13/16.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(10/1/21–3/31/22)

Share

Class

Long-Term

Capital

Gain

A

$0.1756

C

$0.1756

R

$0.1756

R6

$0.1756

Advisor

$0.1756

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.10%

1.37%

Advisor

0.85%

1.12%

Your

Fund’s

Expenses

Franklin

Focused

Growth

Fund

15

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/21

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$864.90

$5.12

$1,019.44

$5.54

1.10%

C

$1,000

$862.00

$8.59

$1,015.70

$9.30

1.85%

R

$1,000

$863.90

$6.27

$1,018.20

$6.79

1.35%

R6

$1,000

$866.60

$3.39

$1,021.30

$3.67

0.73%

Advisor

$1,000

$866.20

$3.95

$1,020.70

$4.28

0.85%

16

franklintempleton.com

Semiannual

Report

Franklin

Growth

Fund

This

semiannual

report

for

Franklin

Growth

Fund

covers

the

period

ended

March

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

by

investing

substantially

in

equity

securities

of

companies

that

are

leaders

in

their

industries.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-2.14%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+5.92%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

18

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry

to

target

leaders

and

emerging

leaders.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

The

investment

manager’s

process

generally

includes

an

assessment

of

the

potential

impacts

of

any

material

environmental,

social

and

governance

(“ESG”)

factors

on

the

long-term

risk

and

return

profile

of

a

company.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund’s

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

the

report.

Manager’s

Discussion

For

the

six

months

under

review,

the

Fund’s

returns

lagged

those

of

the

benchmark.

The

bulk

of

relative

weakness

was

stock

specific,

with

most

of

the

pressure

coming

from

holdings

in

the

information

technology

(IT)

and

health

care

sectors.

Technology

companies

faced

headwinds

over

the

period

that

included

rising

bond

yields,

COVID-19

variants,

rotation

into

more

cyclical

corners

of

the

market

and

profit-taking

following

tech’s

multi-year

gains.

Weakness

in

the

IT

sector

came

from

a

position

in

cloud

communications

platform

company

Twilio,

which

saw

a

modest

pullback

in

its

equity

value

but

is

still

one

of

the

world’s

top

growth

stocks

of

the

past

five

years.

Twilio

processes

text

messages,

calls,

videos,

and

other

content

for

mobile

and

we

regard

it

as

a

high-quality

company

and

key

player

in

the

digital

transformation

of

businesses.

In

the

software

industry,

cloud

company

ServiceNow

underperformed

and

negatively

Portfolio

Composition

3/31/22

%

of

Total

Net

Assets

Software

17.0%

Semiconductors

&

Semiconductor

Equipment

7.3%

Life

Sciences

Tools

&

Services

6.2%

IT

Services

5.9%

Technology

Hardware,

Storage

&

Peripherals

4.9%

Health

Care

Equipment

&

Supplies

4.8%

Interactive

Media

&

Services

4.5%

Internet

&

Direct

Marketing

Retail

4.5%

Capital

Markets

4.4%

Aerospace

&

Defense

4.3%

Pharmaceuticals

4.1%

Machinery

3.8%

Road

&

Rail

3.7%

Electronic

Equipment,

Instruments

&

Components

3.0%

Other*

21.4%

Short-Term

Investments

&

Other

Net

Assets

0.2%

1.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

60

.

Franklin

Growth

Fund

17

franklintempleton.com

Semiannual

Report

impacted

results.

Overall,

we

have

large

exposure

to

the

industry

where

we

see

accelerated

growth

trends

in

cloud

computing

services.

Conversely,

select

semiconductor

stocks

rallied

during

the

period

including

NVIDIA.

Once

mostly

a

graphics

chip

company,

NVIDIA

now

participates

in

nearly

every

disruptive

tech

trend—cloud

computing,

cryptocurrency

mining,

artificial

intelligence,

autonomous

cars,

and

even

the

metaverse.

Chipmakers

in

general

have

been

benefiting

from

an

ongoing

favorable

demand

environment.

In

the

health

care

sector,

a

selloff

in

Chinese

biotech

stocks

followed

reports

of

possible

U.S.

sanctions

against

some

companies

in

the

industry

and

had

a

negative

impact

on

Hong

Kong-based

Wuxi

Biologics

Cayman,

which

we

exited

over

the

period.

In

the

consumer

discretionary

sector,

our

underweight

in

Tesla

detracted

from

relative

returns,

though

contributed

to

absolute

performance.

The

shares

of

the

electric

carmaker

reached

record

highs

as

vehicle

deliveries

surged.

In

contrast,

the

Fund

benefited

most

from

stock

selection

and

an

underweighting

in

the

communication

services

sector,

where

an

underweight

position

in

technology

conglomerate

Meta

Platforms

(formerly

Facebook)

helped

relative

returns.

The

company

faced

heightened

scrutiny

from

regulators

for

failing

to

properly

address

misinformation

and

other

troubling

behavior

on

its

sites.

Meta

also

blamed

the

ongoing

headwinds

from

platform

changes

at

Apple

(also

a

Fund

holding)

as

well

as

the

impact

of

supply

chain

and

inflationary

pressures

on

advertising

dollars

and

decreased

user

engagement

due

to

competition.

Our

lower

exposure

than

the

benchmark

to

Meta

helped

mitigate

the

relative

impact

of

the

stock’s

substantial

decline.

Elsewhere,

stock

selection

in

the

industrials

sector

delivered

two

of

the

top

five

relative

contributors

during

the

period,

Union

Pacific

and

Northrop

Grumman.

Railroad

operator

Union

Pacific

performed

better

than

most

of

its

peers,

helped

by

strong

pricing

and

cargo

yields,

while

Northrop

Grumman

started

seeing

a

recovery

in

the

aerospace

market.

Thank

you

for

your

continued

participation

in

Franklin

Growth

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Serena

Perin

Vinton,

CFA

Robert

Rendler,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

3/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Microsoft

Corp.

5.1%

Software,

United

States

Apple,

Inc.

4.9%

Technology

Hardware,

Storage

&

Peripherals,

United

States

Amazon.com,

Inc.

4.5%

Internet

&

Direct

Marketing

Retail,

United

States

Alphabet,

Inc.

4.2%

Interactive

Media

&

Services,

United

States

NVIDIA

Corp.

2.8%

Semiconductors

&

Semiconductor

Equipment,

United

States

Union

Pacific

Corp.

2.4%

Road

&

Rail,

United

States

ServiceNow

,

Inc.

2.2%

Software,

United

States

Intuit,

Inc.

2.0%

Software,

United

States

Mastercard

,

Inc.

2.0%

IT

Services,

United

States

Northrop

Grumman

Corp.

1.8%

Aerospace

&

Defense,

United

States

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

March

31,

2022

Franklin

Growth

Fund

18

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

3/31/22

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3

6-Month

-2.14%

-7.52%

1-Year

+7.55%

+1.64%

5-Year

+114.31%

+15.16%

10-Year

+283.44%

+13.74%

Advisor

6-Month

-2.02%

-2.02%

1-Year

+7.82%

+7.82%

5-Year

+117.03%

+16.76%

10-Year

+293.16%

+14.67%

See

page

19

for

Performance

Summary

footnotes.

Franklin

Growth

Fund

Performance

Summary

19

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

market

values

of

securities

or

other

investments

owned

by

the

Fund

will

go

up

or

down,

sometimes

rapidly

or

unpredictably.

The

Fund

may

focus

on

particular

sectors

of

the

market

from

time

to

time,

which

can

carry

greater

risks

of

adverse

developments

in

such

sectors.

While

the

Fund

historically

has

focused

on

larger

companies,

it

may

invest

up

to

25%

of

its

assets

in

small,

relatively

new

and/

or

unseasoned

companies,

which

involves

additional

risks,

as

these

companies

may

have

less

certain

growth

prospects

and

limited

or

less

developed

product

lines

or

markets,

and

less

secure

financing.

Growth

stock

prices

can

be

volatile,

particularly

over

the

short

term.

The

Fund

may

invest

up

to

40%

of

its

net

assets

in

stocks

of

foreign

companies,

which

involve

special

risks,

including

currency

fluctuations

and

economic

as

well

as

political

uncertainty.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

4.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(10/1/21–3/31/22)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

–

$0.0588

$13.7618

$13.8206

C

–

$0.0588

$13.7618

$13.8206

R

–

$0.0588

$13.7618

$13.8206

R6

$0.0984

$0.0588

$13.7618

$13.9190

Advisor

–

$0.0588

$13.7618

$13.8206

Total

Annual

Operating

Expenses

4

Share

Class

A

0.79%

Advisor

0.54%

Your

Fund’s

Expenses

Franklin

Growth

Fund

20

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/21

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$978.62

$3.87

$1,021.02

$3.95

0.78%

C

$1,000

$974.90

$7.55

$1,017.28

$7.71

1.53%

R

$1,000

$977.49

$5.09

$1,019.78

$5.20

1.03%

R6

$1,000

$980.20

$2.26

$1,022.65

$2.31

0.46%

Advisor

$1,000

$979.83

$2.63

$1,022.27

$2.69

0.53%

21

franklintempleton.com

Semiannual

Report

Franklin

Income

Fund

This

semiannual

report

for

Franklin

Income

Fund

covers

the

period

ended

March

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

maximize

income,

while

maintaining

prospects

for

capital

appreciation

by

investing,

under

normal

market

conditions,

in

a

diversified

portfolio

of

debt

and

equity

securities.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

cumulative

total

return

of

+6.54%

for

the

six

months

under

review.

In

comparison,

the

Fund’s

equity

benchmark,

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+5.92%

cumulative

total

return.

1

The

Fund’s

secondary

benchmark,

the

blended

50%

MSCI

USA

High

Dividend

Yield

Index

+

25%

Bloomberg

High

Yield

Very

Liquid

Index

+

25%

Bloomberg

U.S.

Aggregate

Bond

Index

(Blended

Benchmark),

which

is

a

combination

of

leading

stock

and

bond

indexes,

posted

a

+1.57%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

24

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

In

analyzing

debt

and

equity

securities,

we

consider

such

factors

as

a

company’s

experience

and

managerial

strength;

responsiveness

to

changes

in

interest

rates

and

business

conditions;

debt

maturity

schedules

and

borrowing

requirements;

changing

financial

condition

and

market

recognition

of

the

change;

and

a

security’s

relative

value

based

on

such

factors

as

anticipated

cash

flow,

interest

or

dividend

coverage,

asset

coverage

and

earnings.

When

choosing

investments

for

the

Fund,

we

apply

a

bottom-up,

value

oriented,

long-term

approach,

focusing

on

the

market

price

of

a

company’s

securities

relative

to

the

investment

manager’s

evaluation

of

the

company’s

long-term

earning,

asset

value

and

cash

flow

potential.

Manager’s

Discussion

During

the

period

under

review,

our

equity

weighting

decreased

from

64.6%

to

57.7%,

and

our

fixed

income

weighting

increased

from

30.1%

to

39.9%.

The

Fund’s

cash

position

decreased

from

5.3%

to

2.4%

of

total

net

assets.

The

Fund

generated

positive

returns

during

the

period

with

strong

performance

across

equity

holdings

and

more

muted

performance

from

fixed

income

in

the

face

of

rising

government

bond

yields.

The

Fund

started

the

period

with

an

overweight

exposure

to

the

equity

market,

which

helped

drive

strong

returns,

while

lower

exposure

to

interest-rate

sensitive

fixed

income

securities

led

to

strong

performance

from

the

Fund

relative

to

its

blended

benchmark.

The

Fund

reduced

its

overweighting

in

equity

during

the

period

under

review.

Dividend

stocks,

particularly

value-oriented

sectors,

outperformed

growth-oriented

sectors

during

the

period

under

review.

The

equity

component

of

the

Fund’s

blended

benchmark

increased

with

the

MSCI

USA

High

Dividend

Yield

Index

posting

positive

returns

for

the

six-month

period.

The

Fund’s

equity

positions

outperformed

the

Fund’s

blended

benchmark.

After

strong

performance

through

the

end

of

the

calendar

year,

corporate

credit

spreads

widened

materially

during

the

second

half

of

the

period

under

review

as

inflationary

concerns,

central

bank

tightening

expectations,

and

geopolitical

risks

weighed

on

risk

markets.

In

addition

to

widening

credit

spreads,

interest

rates

broadly

increased,

which

weighed

on

the

more

duration

sensitive

portions

of

the

Fund’s

benchmark.

Fixed

income

returns

for

the

Fund

outperformed

the

Fund’s

blended

benchmark.

The

Bloomberg

U.S.

Aggregate

Bond

Index

posted

negative

returns,

while

the

Bloomberg

U.S.

High

Yield

Very

Liquid

Index

also

posted

negative

returns

at

period-end.

The

Fund

entered

the

period

with

an

increased

equity

weighting

and

a

decreased

fixed

income

weighting,

while

also

holding

a

portion

in

cash

equivalents,

with

the

Fund

having

already

started

to

reduce

its

peak

equity

allocation

earlier

in

2021.

This

transition

to

a

less

equity-tilted

portfolio

continued

over

the

period

under

review

with

a

decreased

equity

weighting

and

an

increased

fixed

income

weighting,

while

continuing

to

hold

a

portion

in

cash

equivalents

at

period-end.

1.

Source:

Morningstar.

2.

Source:

Factset.

The

Fund’s

Blended

Benchmark

was

calculated

internally.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

72

.

Franklin

Income

Fund

22

franklintempleton.com

Semiannual

Report

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund’s

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

the

report.

Fixed

Income

holdings

posted

negative

returns

during

the

period

but

outperformed

relative

to

the

Fund’s

blended

fixed

income

benchmark.

As

an

asset

class,

fixed

income

underperformed

the

equity

asset

class,

which

benefited

the

Fund

given

its

overweight

allocation

to

equities

relative

to

the

Fund’s

blended

benchmark.

The

Fund’s

duration

positioning

at

the

front

end

of

the

yield

curve

in

the

face

of

rising

interest-rates

was

a

key

source

in

driving

the

outperformance

relative

to

the

Fund’s

benchmark.

Additionally,

while

corporate

credit

spreads

widened

during

the

period

under

review,

the

Fund

had

an

underweight

position

to

corporate

credit

at

the

start

of

the

period,

which

contributed

to

the

outperformance

relative

to

the

Fund’s

benchmark

as

well.

The

Fund

took

advantage

of

the

rate

and

spread-driven

selloff

in

credit

to

increase

our

exposure

to

the

asset

class

during

the

period

under

review,

particularly

within

the

Fund’s

allocation

to

high-yield

corporate

credit.

With

the

exception

of

positive

performance

from

the

energy

sector,

all

fixed

income

sectors

were

negative

contributors

with

U.S

Treasuries,

health

care,

and

communication

services

generating

the

largest

absolute

losses

at

the

Fund

level.

Notably,

our

underweight

allocation

to

fixed

income

and

strong

security

selection

led

to

every

sector

being

a

positive

contributor

to

performance

relative

to

the

Fund’s

blended

fixed

income

benchmark,

with

communication

services

and

financials

being

the

largest

corporate

credit

contributors.

Our

holdings

in

U.S.

Treasuries

and

agency

mortgage-backed

securities

(MBS)

were

absolute

detractors

during

the

period.

However,

these

positions

were

shorter

in

duration

and

much

smaller

in

size

relative

to

the

benchmark,

which

resulted

in

these

sectors

being

positive

contributors

relative

to

the

Fund’s

blended

benchmark.

*Includes

senior

floating

rate

interests

and

index-linked

notes.

Within

energy,

the

largest

contributor

to

performance

was

high-yield

oilfield

service

company

Weatherford

International

followed

by

bonds

of

refining

peers

PBF

Holding

and

Calumet

Specialty

Products.

Strong

commodity

price

performance,

increased

demand

outlook,

as

well

as

strong

business

performance

led

to

the

gains.

Other

notable

outperformers

included

bonds

of

BWAY

Holdings

as

bonds

performed

well

relative

to

the

broader

market

on

speculation

of

an

upcoming

M&A

transaction.

The

company

was

acquired

in

the

fall

of

2022

and

is

now

part

of

Mauser

Packaging

Solutions

(also

a

Fund

holding).

The

other

notable

detractors

were

Diamond

Sports,

a

subsidiary

of

Sinclair

Broadcast

Group

(not

a

Fund

holding)

as

the

company

dealt

with

renewing

carriage

contracts

in

their

regional

sports

broadcasting

business.

Additional

detractors

were

high-yield

pharmaceutical

peers

Endo

and

Bausch

Health

Companies.

Equity

holdings

increased

over

the

period.

As

an

asset-class,

equities

outperformed

fixed

income

during

the

period.

The

Fund

actively

trimmed

its

equity

overweighting

during

the

period

under

review.

All

sectors

were

positive

absolute

contributors

to

Fund

performance

during

the

period

except

for

financials.

Portfolio

Composition

3/31/22

%

of

Total

Net

Assets

Diversified

Financial

Services

9.4%

Pharmaceuticals

9.3%

Banks

8.0%

Electric

Utilities

7.4%

Health

Care

Providers

&

Services

7.2%

Oil,

Gas

&

Consumable

Fuels

6.0%

Semiconductors

&

Semiconductor

Equipment

4.8%

Multi-Utilities

3.5%

Media

3.5%

Diversified

Telecommunication

Services

3.1%

Biotechnology

2.5%

Metals

&

Mining

2.3%

Chemicals

1.7%

Capital

Markets

1.7%

Other*

27.2%

Short-Term

Investments

&

Other

Net

Assets

2.4%

Top

Five

Fixed

Income

Holdings

*

3/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

U.S.

Treasury

Notes

8.9%

Diversified

Financial

Services

,

United

States

CHS/Community

Health

Systems,

Inc.

4.2%

Health

Care

Providers

&

Services

,

United

States

Bausch

Health

Cos.,

Inc.

1.4%

Pharmaceuticals

,

United

States

DISH

DBS

Corp.

1.4%

Media

,

United

States

Tenet

Healthcare

Corp.

1.3%

Health

Care

Providers

&

Services

,

United

States

Franklin

Income

Fund

23

franklintempleton.com

Semiannual

Report

*Includes

convertible

bonds.

Energy,

health

care,

and

utility

holdings

were

the

largest

positive

contributors

relative

to

the

Fund’s

benchmark

during

the

period.

Consumer

staples

and

industrial

holdings

provided

notable

positive

contributions

as

well.

All

the

Fund’s

common

equity

positions

in

the

energy

and

utilities

sectors

were

positive

contributors

during

the

period.

Energy

was

led

by

strong

returns

from

Chevron

and

Exxon

Mobil,

while

utility

returns

were

led

by

Sempra

Energy,

Southern

Company,

and

American

Electric

Power.

Top

performers

in

the

Fund

outside

of

energy

and

utilities

included

pharmaceutical

peers

AbbVie

and

Pfizer,

as

well

as

aerospace

and

defense

player

Lockheed

Martin.

Despite

positive

absolute

contributions,

equity

holdings

in

the

consumer

staples

and

information

technology

sectors

were

modest

detractors

during

the

period

relative

to

the

Fund’s

benchmark.

At

the

individual

security

level,

the

most

notable

detractor

from

performance

over

the

period

came

from

the

equity

holdings

of

financial

peers

JPMorgan

Chase,

Citigroup,

and

Barclays.

Outside

of

these

financial

holdings,

material

peers

BASF

and

International

Paper

were

modest

detractors.

During

the

period,

the

Fund

used

derivatives

such

as

equity

call

and

put

options

to

sell

and

reduce

positions

(call

options)

and/or

to

initiate

and

add

to

positions,

which

generated

gains

during

the

period

under

review.

Thank

you

for

your

continued

participation

in

Franklin

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Edward

D.

Perks,

CFA

Lead

Portfolio

Manager

Brendan

Circle,

CFA

Todd

Brighton,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

Five

Equity

Holdings

*

3/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Chevron

Corp.

1.7%

Oil,

Gas

&

Consumable

Fuels

,

United

States

Southern

Co.

(The)

1.7%

Electric

Utilities

,

United

States

Verizon

Communications,

Inc.

1.5%

Diversified

Telecommunication

Services

,

United

States

Dominion

Energy,

Inc.

1.4%

Multi-Utilities

,

United

States

American

Electric

Power

Co.,

Inc.

1.3%

Electric

Utilities

,

United

States

Performance

Summary

as

of

March

31,

2022

Franklin

Income

Fund

24

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

3/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4,5

6-Month

+6.54%

+2.55%

1-Year

+10.23%

+6.09%

5-Year

+40.46%

+6.22%

10-Year

+99.62%

+6.75%

Advisor

6-Month

+6.32%

+6.32%

1-Year

+10.61%

+10.61%

5-Year

+42.27%

+7.31%

10-Year

+104.31%

+7.41%

30-Day

Standardized

Yield

7

Share

Class

Distribution

Rate

6

(with

fee

waiver)

(without

fee

waiver)

A

4.44%

2.64%

2.63%

Advisor

4.94%

2.99%

2.99%

See

page

26

for

Performance

Summary

footnotes.

Franklin

Income

Fund

Performance

Summary

25

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

portfolio

includes

a

substantial

portion

of

higher-yielding,

lower-rated

corporate

bonds

and

some

floating

rate

loans,

which

are

also

higher-yielding

and

lower-rated.

These

investments

have

more

credit

risk

than

investment-grade

securities

and

are

subject

to

increased

risk

of

default

and

potential

loss

of

principal.

The

Fund’s

share

price

and

yield

will

be

affected

by

interest

rate

movements.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramat-

ically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Foreign

investing

involves

additional

risks

such

as

currency

and

market

volatility,

as

well

as

political

and

social

instability.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

growth.

These

and

any

related

events

could

significantly

impact

the

fund’s

performance

and

the

value

of

an

investment

in

the

fund,

even

beyond

any

direct

exposure

the

fund

may

have

to

Russian

issuers

or

issuers

in

other

countries

affected

by

the

invasion.

1.

The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

1/31/23.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

5.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

6.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

March

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

3/31/22.

Net

Asset

Value

Share

Class

(Symbol)

3/31/22

9/30/21

Change

A

(FKIQX)

$2.52

$2.47

+$0.05

A1

(FKINX)

$2.53

$2.48

+$0.05

C

(FCISX)

$2.57

$2.52

+$0.05

R

(FISRX)

$2.47

$2.43

+$0.04

R6

(FNCFX)

$2.51

$2.47

+$0.04

Advisor

(FRIAX)

$2.50

$2.46

+$0.04

Distributions

(10/1/21–3/31/22)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0547

$0.0156

$0.0364

$0.1067

A1

$0.0565

$0.0156

$0.0364

$0.1085

C

$0.0499

$0.0156

$0.0364

$0.1019

R

$0.0517

$0.0156

$0.0364

$0.1037

R6

$0.0589

$0.0156

$0.0364

$0.1109

Advisor

$0.0583

$0.0156

$0.0364

$0.1103

Total

Annual

Operating

Expenses

8

Share

Class

Without

Fee

Waiver

A

0.72%

Advisor

0.47%

Franklin

Income

Fund

Performance

Summary

26

franklintempleton.com

Semiannual

Report

7.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Your

Fund’s

Expenses

FRANKLIN

INCOME

FUND

27

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/21

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,065.40

$3.66

$1,021.38

$3.59

0.71%

A1

$1,000

$1,066.00

$3.15

$1,021.88

$3.08

0.61%

C

$1,000

$1,062.10

$5.71

$1,019.39

$5.59

1.11%

R

$1,000

$1,061.10

$4.94

$1,020.14

$4.84

0.96%

R6

$1,000

$1,063.00

$2.12

$1,022.88

$2.07

0.41%

Advisor

$1,000

$1,063.20

$2.37

$1,022.63

$2.33

0.46%

28

franklintempleton.com

Semiannual

Report

Franklin

U.S.

Government

Securities

Fund

This

semiannual

report

for

Franklin

U.S.

Government

Securities

Fund

covers

the

period

ended

March

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

income

by

investing

at

least

80%

of

its

net

assets

in

U.S.

government

securities.

The

Fund

presently

invests

substantially

all

of

its

assets

in

Government

National

Mortgage

Association

obligations

(Ginnie

Maes).

Since

1983,

the

Fund

has

invested

substantially

in

Ginnie

Mae

securities,

which

carry

a

guarantee

backed

by

the

full

faith

and

credit

of

the

U.S.

government

as

to

the

timely

payment

of

interest

and

principal.

1

Issued

by

the

Government

National

Mortgage

Association

(GNMA),

Ginnie

Maes

have

been

among

the

highest

yielding

U.S.

government

obligations

available.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-4.70%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Bloomberg

U.S.

Government

-

Intermediate

Index,

the

intermediate

component

of

the

Bloomberg

U.S.

Government

Index,

posted

a

-4.75%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

30

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Investment

Strategy

We

currently

invest

the

Fund’s

assets

substantially

in

GNMA

obligations.

We

analyze

securities

using

proprietary

models

to

help

us

identify

attractive

investment

opportunities.

Manager’s

Discussion

During

the

first

half

of

the

reporting

period,

against

the

backdrop

of

surging

COVID-19

Omicron

variant

infections,

the

U.S.

Federal

Reserve

(Fed)

accelerated

the

timeline

of

asset

purchase

tapering

and

upwardly

revised

its

median

projection

of

interest

rate

hikes

in

2022,

while

the

U.S.

Treasury

(UST)

yield

curve

flattened.

The

yield

curve

inverted

during

the

second

half

of

the

period

as

a

result

of

the

Russian-Ukraine

war,

heightened

geopolitical

tensions

and

persistent

inflationary

pressures

that

increased

expectations

for

a

more

aggressive

Fed.

As

widely

expected,

the

Fed

lifted

the

federal

funds

target

rate

by

25

basis

points

at

their

March

2022

meeting

and

signaled

six

more

hikes

ahead

this

year

and

four

more

beyond

that.

Fed

Chair

Jerome

Powell’s

urgency

on

beginning

balance

sheet

normalization

suggests

that

the

runoff

could

begin

by

mid-May

2022.

The

maximum

run-off

rate

will

likely

be

phased

in

by

the

middle

of

the

third

quarter

2022,

earlier

than

previously

expected.

Volatility,

as

measured

by

the

Merrill

Lynch

Option

Volatility

Estimate

Index,

also

spiked

during

the

period.

Despite

rising

mortgage

interest-rates,

demand

in

the

U.S.

housing

market

continued

to

outstrip

supply,

leading

to

ever

increasing

home

price

appreciation.

The

Primary

Mortgage

Market

Survey

rates

moved

back

to

pre-COVID-19

levels,

leaving

only

a

very

small

amount

of

the

universe

with

an

economic

incentive

to

refinance,

in

our

view,

compared

to

a

much

larger

portion

in

2020,

and

even

at

the

beginning

of

2022.

We

believe

that

as

rates

are

expected

to

rise

further,

this

will

contribute

to

declining

prepayment

levels.

The

Fund

maintains

a

conservative,

disciplined

investment

strategy

and

invests

primarily

in

GNMA

mortgage

pass-

throughs,

which

remain

the

only

MBS

that

are

backed

by

the

full

faith

and

credit

of

the

U.S.

government—the

same

Portfolio

Composition

3/31/22

%

of

Total

Net

Assets

Mortgage-Backed

Securities

97.3%

Other

0.5%

Short-Term

Investments

&

Other

Net

Assets

2.2%

1.

Securities

owned

by

the

Fund,

but

not

shares

of

the

Fund,

are

guaranteed

by

the

U.S.

government,

its

agencies

or

instrumentalities

as

to

the

timely

payment

of

principal

and

interest.

The

Fund’s

yield

and

share

price

are

not

guaranteed

and

will

vary

with

market

conditions.

2.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

97

.

Franklin

U.S.

Government

Securities

Fund

29

franklintempleton.com

Semiannual

Report

guarantee

applicable

to

U.S.

Treasuries.

1

We

believe

our

collateral-intensive

research

approach

can

allow

us

to

uncover

dislocations

across

the

GNMA

markets

and

associated

mispricing

of

prepayment

risk.

We

continue

to

focus

on

specified

pools

where

we

believe

our

experience

and

continual

investment

in

new

technologies

help

us

uncover

these

discrepancies.

Total

return

performance

was

negative

across

agency

MBS

sectors

during

the

reporting

period.

GMNA

MBS

was

the

best

performer

on

a

relative

basis,

followed

by

Fannie

Mae

MBS

and

Freddie

Mac

MBS.

Across

the

GNMA

coupon

stack,

4.5%

coupons

were

the

best

performers,

while

3.0%

coupons

lagged.

During

the

period,

the

portfolio

retained

a

higher

weighting

to

GNMA

IIs

(pools

of

mortgages

from

multiple

issuers)

than

GNMA

Is

(pools

of

mortgages

from

single

issuers).

Over

the

period,

we

added

to

GNMA

II

2.5%

coupons,

while

reducing

exposure

to

GNMA

II

3.5%

coupons.

The

portfolio’s

largest

absolute

allocations

were

in

3.0%

and

2.5%

coupons

at

period-end

and

relative

to

the

Bloomberg

GNMA

Index

the

portfolio

was

underweight

the

2.0%

and

2.5%

coupons

and

overweight

the

3.0%

coupon

and

4.5%

through

6.0%

coupons.

The

Fund’s

underweight

allocation

to

GNMA

II

2.0%

coupons

was

the

largest

contributor

to

performance.

In

addition,

an

overweight

allocation

to

coupons

GNMA

II

2.5%

and

4.0%,

and

an

underweight

allocation

to

GNMA

I

3.0%

also

contributed.

Security

selection

in

GNMA

II

2.0%

through

3.0%,

as

well

as

4.0%

and

5.0%

coupons

benefited

performance.

Overweight

allocation

to

GNMA

II

3.0%

coupons

was

the

largest

detractor

from

performance.

Thank

you

for

your

continued

participation

in

Franklin

U.S.

Government

Securities

Fund.

We

welcome

your

comments

and

questions

and

look

forward

to

serving

your

investment

needs

in

the

years

ahead.

Paul

Varunok

Neil

Dhruv

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

March

31,

2022

Franklin

U.S.

Government

Securities

Fund

30

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

3/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4,5

6-Month

-4.70%

-8.27%

1-Year

-5.26%

-8.81%

5-Year

+3.12%

-0.15%

10-Year

+8.97%

+0.48%

Advisor

6-Month

-4.73%

-4.73%

1-Year

-5.01%

-5.01%

5-Year

+4.01%

+0.79%

10-Year

+10.92%

+1.04%

30-Day

Standardized

Yield

7

Share

Class

Distribution

Rate

6

(with

fee

waiver)

(without

fee

waiver)

A

2.27%

1.44%

1.43%

Advisor

2.61%

1.74%

1.74%

See

page

31

for

Performance

Summary

footnotes.

Franklin

U.S.

Government

Securities

Fund

Performance

Summary

31

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

loss

of

principal.

The

Fund’s

share

price

and

yield

will

be

affected

by

interest

rate

movements

and

mortgage

prepayments.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberat-

tacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

1/31/23.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

5.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

6.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

March

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

3/31/22.

7.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(10/1/21–3/31/22)

Share

Class

Net

Investment

Income

A

$0.0651

A1

$0.0681

C

$0.0533

R

$0.0579

R6

$0.0755

Advisor

$0.0722

Total

Annual

Operating

Expenses

8

Share

Class

Without

Fee

Waiver

A

0.87%

Advisor

0.62%

Your

Fund’s

Expenses

Franklin

U.S.

Government

Securities

Fund

32

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration):

Divide

your

account

value

by

$1,000

(if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/21

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$953.00

$4.22

$1,020.61

$4.36

0.87%

A1

$1,000

$951.90

$3.70

$1,021.14

$3.83

0.76%

C

$1,000

$950.70

$6.16

$1,018.62

$6.37

1.27%

R

$1,000

$951.80

$5.43

$1,019.37

$5.62

1.12%

R6

$1,000

$955.00

$2.48

$1,022.40

$2.56

0.51%

Advisor

$1,000

$952.70

$3.00

$1,021.86

$3.10

0.62%

33

franklintempleton.com

Semiannual

Report

Franklin

Utilities

Fund

This

semiannual

report

for

Franklin

Utilities

Fund

covers

the

period

ended

March

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

both

capital

appreciation

and

current

income

by

investing

at

least

80%

of

its

net

assets

in

the

securities

of

public

utility

companies.

These

are

companies

that

provide

electricity,

natural

gas,

water,

and

communications

services

to

the

public

and

companies

that

provide

services

to

public

utilities

companies.

The

Fund

concentrates

(invests

more

than

25%

of

its

total

assets)

in

companies

operating

in

the

utilities

industry.

The

Fund

invests

primarily

in

equity

securities,

which

consist

mainly

of

common

stocks.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+18.99%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

S&P

500

Utilities

Index,

which

measures

the

performance

of

all

utilities

stocks

in

the

S&P

500,

posted

a

+18.32%

cumulative

total

return

and

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+5.92%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

35

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

We

search

for

the

best

return

opportunities

available

in

the

global

utilities

arena

with

a

specific

focus

on

the

U.S.

electricity

and

gas

sector.

Generally,

we

seek

to

invest

in

companies

producing

a

high

percentage

of

earnings

from

their

regulated

operations.

Manager’s

Discussion

During

the

six-month

period

under

review,

electric

utilities

and

multi-utilities

industries

drove

performance

with

additional,

notable

contribution

from

oil,

gas

and

consumable

fuels.

No

industries

detracted

on

an

absolute

basis.

Among

the

individual

contributors,

Chicago-based

electric

power

company

Exelon

led

the

way,

benefiting

from

electricity

prices

that

reached

a

decade-plus

high

in

2021

amid

the

recovery

from

the

depths

of

the

pandemic.

Exelon’s

January

2022

spin-off

of

Constellation

Energy

(also

a

Fund

holding),

its

power

generation

business,

was

well-received

by

investors,

who

received

shares

of

the

new

company,

which

stands

to

benefit

from

potential

regulatory

support

for

nuclear

power

as

the

U.S.

moves

toward

a

clean

energy

grid.

Recent

earnings

results

have

been

relatively

positive,

although

a

2021

winter

storm

in

Texas

had

a

negative

impact

on

its

full

year

2021

earnings.

Energy

infrastructure

company

Sempra

Energy,

based

in

San

Diego,

also

contributed.

The

company’s

core

natural

gas

and

electricity

business

serves

30

million-plus

customers

in

California

and

Texas

and

has

benefited

from

California’s

constructive

regulatory

environment

and

Texas’

aggressive

efforts

to

build

out

wind

energy.

The

anticipated

demand

for

U.S.

liquified

natural

gas

following

Russia’s

invasion

of

Ukraine

will

likely

benefit

Sempra’s

infrastructure

business,

which

also

bolstered

the

stock.

In

February,

Sempra

announced

strong

guidance

for

2022

and

2023,

supported

by

a

sizable

capital

expenditure

plan,

and

boosted

its

dividend.

Portfolio

Composition

3/31/22

%

of

Total

Net

Assets

Electric

Utilities

57.2%

Multi-Utilities

32.8%

Oil,

Gas

&

Consumable

Fuels

2.2%

Gas

Utilities

1.8%

Water

Utilities

1.5%

Independent

Power

and

Renewable

Electricity

Producers

1.3%

Diversified

Telecommunication

Services

1.1%

Other

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.1%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

105

.

Franklin

Utilities

Fund

34

franklintempleton.com

Semiannual

Report

Renewable

power

producer

and

electric

utility

NextEra

Energy

reported

double-digit

earnings

growth

for

2021,

fueled

by

both

its

regulated

utilities

and

its

energy

resources

unit.

The

latter

includes

NextEra’s

renewable

power

business,

which

has

grown

quickly

and

boasts

a

backlog

of

new

projects,

supported

by

Florida’s

friendly

regulatory

environment.

We

believe

the

company

can

develop

those

projects

in

a

cost-effective

manner.

NextEra’s

guidance

for

2022

and

2023

forecasts

a

similar

growth

path

to

2021,

and

the

company’s

fundamentals

have

remained

robust.

We

believe

that

the

company

is

well-positioned

for

strong

long-

term

growth

regardless

of

the

regulatory

environment.

Conversely,

Germany-based

energy

giant

E.ON,

in

the

multi-utilities

industry,

was

the

lone

individual

holding

to

meaningfully

detract

from

absolute

performance

during

the

period.

E.ON

shares,

which

stood

at

multi-year

highs

in

mid-

February

2022

after

recording

strong

profit

growth

in

2021,

declined

sharply

after

Russia

invaded

Ukraine.

In

March,

the

company

lowered

its

2022

earnings

guidance,

admitting

that

the

impact

of

the

war

was

unpredictable.

Thank

you

for

your

continued

participation

in

Franklin

Utilities

Fund.

We

look

forward

to

serving

your

future

investment

needs.

John

C.

Kohli,

CFA

J.

Blair

Schmicker,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

3/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

NextEra

Energy,

Inc.

11.7%

Electric

Utilities,

United

States

CMS

Energy

Corp.

4.8%

Multi-Utilities,

United

States

Dominion

Energy,

Inc.

4.6%

Multi-Utilities,

United

States

Sempra

Energy

4.3%

Multi-Utilities,

United

States

Duke

Energy

Corp.

4.3%

Electric

Utilities,

United

States

Edison

International

4.3%

Electric

Utilities,

United

States

Southern

Co.

(The)

4.2%

Electric

Utilities,

United

States

American

Electric

Power

Co.,

Inc.

3.9%

Electric

Utilities,

United

States

Exelon

Corp.

3.8%

Electric

Utilities,

United

States

Entergy

Corp.

3.6%

Electric

Utilities,

United

States

Performance

Summary

as

of

March

31,

2022

Franklin

Utilities

Fund

35

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

3/31/22

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3,4

6-Month

+18.99%

+14.53%

1-Year

+20.35%

+15.83%

5-Year

+64.75%

+9.66%

10-Year

+186.05%

+10.66%

Advisor

6-Month

+19.14%

+19.14%

1-Year

+20.70%

+20.70%

5-Year

+66.62%

+10.75%

10-Year

+191.59%

+11.30%

Share

Class

Distribution

Rate

5

30-Day

Standardized

Yield

6

A

1.91%

2.03%

Advisor

2.20%

2.35%

See

page

36

for

Performance

Summary

footnotes.

Franklin

Utilities

Fund

Performance

Summary

36

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

loss

of

principal.

Investing

in

a

Fund

concentrating

in

the

utilities

sector

involves

special

risks,

including

increased

susceptibility

to

adverse

economic

and

regulatory

developments

affecting

the

sector.

Stocks

historically

have

outperformed

other

asset

classes

over

the

long

term,

but

tend

to

fluctuate

more

dramatically

over

the

short

term.

Securities

issued

by

utility

companies

have

been

historically

sensitive

to

interest

rate

changes.

When

interest

rates

fall,

utility

securities

prices,

and

thus

a

utilities

Fund’s

share

price,

tend

to

rise;

when

interest

rates

rise,

their

prices

generally

fall.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

current

quarterly

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

3/31/22.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Net

Asset

Value

Share

Class

(Symbol)

3/31/22

9/30/21

Change

A

(FKUQX)

$23.08

$20.20

+$2.88

A1

(FKUTX)

$23.09

$20.21

+$2.88

C

(FRUSX)

$22.95

$20.09

+$2.86

R

(FRURX)

$22.98

$20.12

+$2.86

R6

(FUFRX)

$23.32

$20.40

+$2.92

Advisor

(FRUAX)

$23.32

$20.40

+$2.92

Distributions

(10/1/21–3/31/22)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.2416

$0.0658

$0.5338

$0.8412

A1

$0.2523

$0.0658

$0.5338

$0.8519

C

$0.1993

$0.0658

$0.5338

$0.7989

R

$0.2152

$0.0658

$0.5338

$0.8148

R6

$0.2758

$0.0658

$0.5338

$0.8754

Advisor

$0.2682

$0.0658

$0.5338

$0.8678

Total

Annual

Operating

Expenses

7

Share

Class

A

0.82%

Advisor

0.57%

Your

Fund’s

Expenses

Franklin

Utilities

Fund

37

franklintempleton.com

Semianual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/21

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

Ending

Account

Value

3/31/22

Expenses

Paid

During

Period

10/1/21–3/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,189.90

$4.50

$1,020.82

$4.16

0.83%

A1

$1,000

$1,190.40

$3.96

$1,021.32

$3.65

0.73%

C

$1,000

$1,187.60

$6.68

$1,018.83

$6.16

1.22%

R

$1,000

$1,188.20

$5.86

$1,019.57

$5.41

1.07%

R6

$1,000

$1,191.90

$2.74

$1,022.43

$2.53

0.50%

Advisor

$1,000

$1,191.40

$3.14

$1,022.07

$2.90

0.58%

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$157.23

$121.24

$82.84

$81.16

$63.10

$52.05

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.40)

(0.82)

(0.38)

(0.20)

(0.23)

(0.18)

Net

realized

and

unrealized

gains

(losses)

(25.64)

36.81

39.44

3.79

19.45

12.92

Total

from

investment

operations

........

(26.04)

35.99

39.06

3.59

19.22

12.74

Less

distributions

from:

Net

realized

gains

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

(2.22)

—

(0.66)

(1.91)

(1.16)

(1.69)

Net

asset

value,

end

of

period

..........

$128.97

$157.23

$121.24

$82.84

$81.16

$63.10

Total

return

c

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

(16.80)%

29.68%

47.47%

4.77%

30.88%

25.67%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.77%

0.79%

0.85%

0.86%

0.86%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.77%

f

0.79%

f

0.84%

0.85%

0.86%

f

0.91%

Net

investment

(loss)

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

(0.55)%

(0.56)%

(0.39)%

(0.26)%

(0.32)%

(0.33)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$10,221,961

$12,129,483

$8,378,574

$4,504,434

$3,741,562

$2,498,393

Portfolio

turnover

rate

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

25.05%

18.77%

13.82%

20.01%

17.22%

19.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

39

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$128.06

$99.49

$68.60

$68.07

$53.49

$44.71

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.77)

(1.55)

(0.91)

(0.66)

(0.65)

(0.50)

Net

realized

and

unrealized

gains

(losses)

(20.76)

30.12

32.46

3.10

16.39

10.97

Total

from

investment

operations

........

(21.53)

28.57

31.55

2.44

15.74

10.47

Less

distributions

from:

Net

realized

gains

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

(2.22)

—

(0.66)

(1.91)

(1.16)

(1.69)

Net

asset

value,

end

of

period

..........

$104.31

$128.06

$99.49

$68.60

$68.07

$53.49

Total

return

c

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

(17.11)%

28.72%

46.37%

3.97%

29.93%

24.72%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.52%

1.54%

1.60%

1.61%

1.61%

1.67%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.52%

f

1.54%

f

1.59%

1.60%

1.61%

f

1.66%

Net

investment

(loss)

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

(1.30)%

(1.31)%

(1.14)%

(1.01)%

(1.07)%

(1.08)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,071,130

$1,339,016

$1,095,702

$597,927

$611,221

$374,502

Portfolio

turnover

rate

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

25.05%

18.77%

13.82%

20.01%

17.22%

19.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$151.52

$117.13

$80.26

$78.88

$61.51

$50.90

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.56)

(1.14)

(0.60)

(0.39)

(0.40)

(0.31)

Net

realized

and

unrealized

gains

(losses)

(24.67)

35.53

38.13

3.68

18.93

12.61

Total

from

investment

operations

........

(25.23)

34.39

37.53

3.29

18.53

12.30

Less

distributions

from:

Net

realized

gains

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

(2.22)

—

(0.66)

(1.91)

(1.16)

(1.69)

Net

asset

value,

end

of

period

..........

$124.07

$151.52

$117.13

$80.26

$78.88

$61.51

Total

return

c

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

(16.90)%

29.36%

47.09%

4.52%

30.57%

25.36%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.02%

1.04%

1.10%

1.11%

1.11%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.02%

f

1.04%

f

1.09%

1.10%

1.11%

f

1.16%

Net

investment

(loss)

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

(0.80)%

(0.81)%

(0.63)%

(0.51)%

(0.57)%

(0.58)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$263,814

$311,646

$221,041

$123,721

$95,925

$47,860

Portfolio

turnover

rate

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

25.05%

18.77%

13.82%

20.01%

17.22%

19.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

41

ue

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$165.26

$127.01

$86.46

$84.31

$65.28

$53.56

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.17)

(0.36)

(0.05)

0.07

0.04

0.06

Net

realized

and

unrealized

gains

(losses)

(26.99)

38.61

41.26

3.99

20.15

13.35

Total

from

investment

operations

........

(27.16)

38.25

41.21

4.06

20.19

13.41

Less

distributions

from:

Net

realized

gains

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

(2.22)

—

(0.66)

(1.91)

(1.16)

(1.69)

Net

asset

value,

end

of

period

..........

$135.88

$165.26

$127.01

$86.46

$84.31

$65.28

Total

return

c

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

(16.66)%

30.12%

47.97%

5.15%

31.38%

26.17%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.45%

0.46%

0.50%

0.51%

0.50%

0.49%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.44%

0.46%

f

0.50%

f

0.50%

0.50%

f

0.48%

Net

investment

income

(loss)

..........

(0.22)%

(0.23)%

(0.05)%

0.09%

0.04%

0.10%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$8,703,193

$9,820,184

$5,817,028

$2,473,942

$1,688,595

$457,846

Portfolio

turnover

rate

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

25.05%

18.77%

13.82%

20.01%

17.22%

19.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$163.27

$125.58

$85.58

$83.56

$64.78

$53.25

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.23)

(0.48)

(0.15)

(0.01)

(0.06)

(0.04)

Net

realized

and

unrealized

gains

(losses)

(26.65)

38.17

40.81

3.94

20.00

13.26

Total

from

investment

operations

........

(26.88)

37.69

40.66

3.93

19.94

13.22

Less

distributions

from:

Net

realized

gains

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

(2.22)

—

(0.66)

(1.91)

(1.16)

(1.69)

Net

asset

value,

end

of

period

..........

$134.17

$163.27

$125.58

$85.58

$83.56

$64.78

Total

return

c

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

(16.69)%

30.01%

47.83%

5.04%

31.21%

25.98%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.52%

0.54%

0.60%

0.61%

0.61%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.52%

f

0.54%

f

0.59%

0.60%

0.61%

f

0.66%

Net

investment

(loss)

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

(0.30

)%

(0.32)%

(0.15)%

(0.01)%

(0.07)%

(0.08)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,616,914

$4,352,531

$2,884,489

$1,154,604

$680,066

$712,762

Portfolio

turnover

rate

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

25.05%

18.77%

13.82%

20.01%

17.22%

19.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited),

March

31,

2022

Franklin

DynaTech

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

43

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

98.7%

Aerospace

&

Defense

0.7%

a

Axon

Enterprise,

Inc.

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

United

States

800,000

$

110,184,000

HEICO

Corp.

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

United

States

375,000

57,577,500

167,761,500

Automobiles

3.0%

a

Tesla,

Inc.

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

United

States

665,000

716,604,000

Banks

0.6%

a

SVB

Financial

Group

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

United

States

275,000

153,848,750

Biotechnology

0.4%

a

Argenx

SE

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

Netherlands

250,000

78,228,428

a

Intellia

Therapeutics,

Inc.

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

United

States

400,000

29,068,000

107,296,428

Capital

Markets

2.9%

CME

Group,

Inc.

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

United

States

250,000

59,465,000

FactSet

Research

Systems,

Inc.

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

United

States

80,000

34,732,000

Moody's

Corp.

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

United

States

350,000

118,093,500

MSCI,

Inc.

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

United

States

500,000

251,440,000

Tradeweb

Markets,

Inc.,

A

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

United

States

2,500,000

219,675,000

683,405,500

Chemicals

0.8%

Corteva

,

Inc.

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

United

States

1,175,000

67,539,000

FMC

Corp.

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

United

States

250,000

32,892,500

Linde

plc

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

United

Kingdom

300,000

95,740,682

196,172,182

Construction

&

Engineering

0.3%

Quanta

Services,

Inc.

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

United

States

505,000

66,463,050

Electric

Utilities

1.2%

NextEra

Energy,

Inc.

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

United

States

3,500,000

296,485,000

Electronic

Equipment,

Instruments

&

Components

1.6%

Amphenol

Corp.,

A

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

United

States

2,000,000

150,700,000

Keyence

Corp.

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

Japan

200,000

92,751,951

a

Keysight

Technologies,

Inc.

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

United

States

300,000

47,391,000

a

Trimble,

Inc.

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

United

States

275,000

19,838,500

a

Zebra

Technologies

Corp.,

A

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

United

States

200,000

82,740,000

393,421,451

Energy

Equipment

&

Services

0.4%

Baker

Hughes

Co.

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

United

States

2,400,000

87,384,000

Entertainment

0.7%

a

Sea

Ltd.,

ADR

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

Taiwan

1,400,000

167,706,000

Equity

Real

Estate

Investment

Trusts

(REITs)

0.9%

Crown

Castle

International

Corp.

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

United

States

200,000

36,920,000

SBA

Communications

Corp.

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

United

States

500,000

172,050,000

208,970,000

Health

Care

Equipment

&

Supplies

6.8%

Abbott

Laboratories

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

United

States

1,650,000

195,294,000

a

Dexcom

,

Inc.

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

United

States

250,000

127,900,000

a

Edwards

Lifesciences

Corp.

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

United

States

1,400,000

164,808,000

a

IDEXX

Laboratories,

Inc.

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

United

States

725,000

396,618,500

a

Insulet

Corp.

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

United

States

325,000

86,576,750

a

Intuitive

Surgical,

Inc.

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

United

States

950,000

286,596,000

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Equipment

&

Supplies

(continued)

STERIS

plc

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

United

States

1,000,000

$

241,770,000

Stryker

Corp.

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

United

States

500,000

133,675,000

1,633,238,250

Health

Care

Providers

&

Services

1.1%

UnitedHealth

Group,

Inc.

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

United

States

500,000

254,985,000

Health

Care

Technology

1.7%

a

Doximity

,

Inc.,

A

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

United

States

300,000

15,627,000

a

Inspire

Medical

Systems,

Inc.

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

United

States

800,000

205,352,000

a

Veeva

Systems,

Inc.,

A

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

United

States

900,000

191,214,000

412,193,000

Hotels,

Restaurants

&

Leisure

1.0%

a

Airbnb,

Inc.,

A

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

United

States

800,000

137,408,000

a

Booking

Holdings,

Inc.

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

United

States

40,000

93,938,000

231,346,000

Industrial

Conglomerates

1.0%

Roper

Technologies,

Inc.

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

United

States

500,000

236,115,000

Interactive

Media

&

Services

6.3%

a

Alphabet,

Inc.,

A

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

United

States

300,000

834,405,000

a

Alphabet,

Inc.,

C

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

United

States

100,000

279,299,000

a

Match

Group,

Inc.

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

United

States

400,000

43,496,000

a

Meta

Platforms,

Inc.,

A

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

United

States

500,000

111,180,000

Tencent

Holdings

Ltd.

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

China

500,000

23,047,319

a

ZoomInfo

Technologies,

Inc.,

A

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

United

States

3,500,000

209,090,000

1,500,517,319

Internet

&

Direct

Marketing

Retail

7.8%

a

Amazon.com,

Inc.

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

United

States

500,000

1,629,975,000

a

JD.com,

Inc.,

A

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

China

47,619

1,353,097

a

MercadoLibre

,

Inc.

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

Brazil

190,000

226,001,200

1,857,329,297

IT

Services

9.2%

Accenture

plc,

A

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

United

States

65,000

21,919,950

a,b

Adyen

NV,

144A,

Reg

S

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

Netherlands

200,000

396,192,678

a

Cloudflare

,

Inc.,

A

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

United

States

100,000

11,970,000

a

Endava

plc,

ADR

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

United

Kingdom

350,000

46,560,500

a

EPAM

Systems,

Inc.

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

United

States

200,000

59,322,000

a

Globant

SA

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

United

States

250,000

65,517,500

Mastercard

,

Inc.,

A

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

United

States

1,625,000

580,742,500

a

MongoDB,

Inc.

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

United

States

700,000

310,513,000

a

Okta

,

Inc.

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

United

States

150,000

22,644,000

a

Shopify,

Inc.,

A

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

Canada

400,000

270,496,301

a

Snowflake,

Inc.,

A

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

United

States

500,000

114,565,000

a

Thoughtworks

Holding,

Inc.

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

United

States

547,700

11,397,637

a

Twilio

,

Inc.,

A

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

United

States

400,000

65,924,000

Visa,

Inc.,

A

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

United

States

1,000,000

221,770,000

2,199,535,066

Life

Sciences

Tools

&

Services

7.3%

a

Bio-Rad

Laboratories,

Inc.,

A

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

United

States

200,000

112,646,000

Bio-

Techne

Corp.

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

United

States

100,000

43,304,000

Bruker

Corp.

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

United

States

350,000

22,505,000

Danaher

Corp.

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

United

States

2,000,000

586,660,000

a

Evotec

SE

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

Germany

550,000

16,553,199

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

45

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Life

Sciences

Tools

&

Services

(continued)

a

Evotec

SE,

ADR

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

Germany

700,000

$

10,591,000

a

Illumina,

Inc.

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

United

States

100,000

34,940,000

Lonza

Group

AG

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

Switzerland

200,000

144,920,791

a

Repligen

Corp.

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

United

States

1,000,000

188,090,000

Thermo

Fisher

Scientific,

Inc.

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

United

States

1,000,000

590,650,000

1,750,859,990

Media

0.1%

a

Liberty

Broadband

Corp.,

A

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

United

States

97,400

12,765,244

Pharmaceuticals

1.8%

AstraZeneca

plc,

ADR

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

United

Kingdom

725,000

48,096,500

a

Catalent

,

Inc.

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

United

States

1,900,000

210,710,000

Zoetis,

Inc.

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

United

States

900,000

169,731,000

428,537,500

Professional

Services

0.2%

a

CoStar

Group,

Inc.

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

United

States

900,000

59,949,000

Semiconductors

&

Semiconductor

Equipment

14.1%

a

Advanced

Micro

Devices,

Inc.

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

United

States

1,400,000

153,076,000

Analog

Devices,

Inc.

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

United

States

1,725,000

284,935,500

ASM

International

NV

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

Netherlands

150,000

54,627,169

ASML

Holding

NV,

NYRS

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

Netherlands

750,000

500,947,500

Entegris

,

Inc.

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

United

States

1,000,000

131,260,000

a,c

GLOBALFOUNDRIES,

Inc.

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

United

States

1,200,000

74,904,000

Intel

Corp.

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

United

States

750,000

37,170,000

KLA

Corp.

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

United

States

500,000

183,030,000

Lam

Research

Corp.

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

United

States

500,000

268,805,000

Marvell

Technology,

Inc.

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

United

States

850,000

60,953,500

Monolithic

Power

Systems,

Inc.

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

United

States

500,000

242,840,000

NVIDIA

Corp.

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

United

States

4,000,000

1,091,440,000

a

SiTime

Corp.

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

United

States

500,000

123,910,000

Teradyne,

Inc.

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

United

States

1,300,000

153,699,000

3,361,597,669

Software

25.1%

a

Adobe,

Inc.

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

United

States

450,000

205,029,000

a

ANSYS,

Inc.

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

United

States

600,000

190,590,000

a

Aspen

Technology,

Inc.

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

United

States

350,000

57,879,500

a

Atlassian

Corp.

plc,

A

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

United

States

1,100,000

323,213,000

a

Avalara,

Inc.

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

United

States

1,000,000

99,510,000

a

Bill.com

Holdings,

Inc.

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

United

States

400,000

90,716,000

a

Cadence

Design

Systems,

Inc.

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

United

States

2,100,000

345,366,000

a

Crowdstrike

Holdings,

Inc.,

A

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

United

States

600,000

136,248,000

a,c

CS

Disco,

Inc.

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

United

States

100,000

3,397,000

a

Datadog

,

Inc.,

A

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

United

States

1,500,000

227,205,000

a

Descartes

Systems

Group,

Inc.

(The)

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

Canada

350,000

25,641,000

a

Fortinet,

Inc.

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

United

States

300,000

102,522,000

a

HubSpot

,

Inc.

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

United

States

850,000

403,699,000

Intuit,

Inc.

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

United

States

1,025,000

492,861,000

Microsoft

Corp.

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

United

States

4,000,000

1,233,240,000

a

Palo

Alto

Networks,

Inc.

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

United

States

250,000

155,627,500

a

Paycom

Software,

Inc.

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

United

States

185,000

64,080,300

a

Procore

Technologies,

Inc.

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

United

States

1,200,000

69,552,000

a

salesforce.com,

Inc.

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

United

States

1,400,000

297,248,000

a,c

SentinelOne

,

Inc.,

A

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

United

States

250,000

9,685,000

a

ServiceNow

,

Inc.

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

United

States

1,100,000

612,579,000

a

Synopsys,

Inc.

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

United

States

1,250,000

416,587,500

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

a

Tyler

Technologies,

Inc.

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

United

States

300,000

$

133,467,000

a

Workday,

Inc.,

A

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

United

States

1,050,000

251,433,000

a

Zscaler

,

Inc.

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

United

States

200,000

48,256,000

5,995,631,800

Technology

Hardware,

Storage

&

Peripherals

1.5%

Apple,

Inc.

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

United

States

2,000,000

349,220,000

Trading

Companies

&

Distributors

0.2%

Fastenal

Co.

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

United

States

650,000

38,610,000

Total

Common

Stocks

(Cost

$13,422,520,717)

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

23,567,947,996

Short

Term

Investments

1.5%

a

a

Country

Shares

a

Value

a

a

Money

Market

Funds

1.3%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

313,640,695

313,640,695

Total

Money

Market

Funds

(Cost

$313,640,695)

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

313,640,695

f

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.2%

a

a

a

a

Money

Market

Funds

0.2%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

32,940,000

32,940,000

Principal

Amount

*

Repurchase

Agreements

0.0%

†

g

Joint

Repurchase

Agreement,

BNP

Paribas

SA,

0.28%,

4/01/22

(Maturity

Value

$8,235,562)

Collateralized

by

U.S.

Treasury

Bond,

6%,

2/15/26;

U.S.

Treasury

Bonds,

Strips,

8/15/24

-

2/15/26;

U.S.

Treasury

Notes,

0.125%

-

2.875%,

10/31/22

-

1/31/27;

and

U.S.

Treasury

Notes,

Index

Linked,

0.125%

-

0.625%,

1/15/24

-

7/15/26

(valued

at

$8,400,209)

8,235,498

8,235,498

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$41,175,498)

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

41,175,498

Total

Short

Term

Investments

(Cost

$354,816,193

)

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

354,816,193

a

Total

Investments

(Cost

$13,777,336,910)

100.2%

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

$23,922,764,189

Other

Assets,

less

Liabilities

(0.2)%

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

(45,753,271)

Net

Assets

100.0%

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

$23,877,010,918

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

DynaTech

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

47

See

Abbreviations

on

page

142

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

March

31,

2022,

the

value

of

this

security

was

$396,192,678,

representing

1.7%

of

net

assets.

c

A

portion

or

all

of

the

security

is

on

loan

at

March

31,

2022.

See

Note

1(g).

d

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

f

See

Note

1(g)

regarding

securities

on

loan.

g

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Year

Ended

September

30,

2020

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$31.61

$25.05

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.12)

(0.23)

(0.10)

Net

realized

and

unrealized

gains

(losses)

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

(4.12)

7.00

4.99

Total

from

investment

operations

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

(4.24)

6.77

4.89

Less

distributions

from:

Net

realized

gains

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

(0.18)

(0.21)

—

Net

asset

value,

end

of

period

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

$27.19

$31.61

$25.05

Total

return

d

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

(13.51)%

27.17%

24.26%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.40%

1.36%

1.81%

Expenses

net

of

waiver

and

payments

by

affiliates

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

1.10%

f

1.10%

f

1.10%

Net

investment

(loss)

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

(0.81)%

(0.78)%

(0.72)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$76,784

$80,509

$26,793

Portfolio

turnover

rate

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

26.85%

22.77%

33.93%

a

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

49

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Year

Ended

September

30,

2020

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$31.23

$24.94

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.23)

(0.44)

(0.21)

Net

realized

and

unrealized

gains

(losses)

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

(4.05)

6.94

4.99

Total

from

investment

operations

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

(4.28)

6.50

4.78

Less

distributions

from:

Net

realized

gains

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

(0.18)

(0.21)

—

Net

asset

value,

end

of

period

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

$26.77

$31.23

$24.94

Total

return

d

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

(13.80)%

26.20%

23.71%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

2.15%

2.12%

2.56%

Expenses

net

of

waiver

and

payments

by

affiliates

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

1.85%

f

1.85%

f

1.85%

Net

investment

(loss)

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

(1.55)%

(1.53)%

(1.47)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$6,036

$6,028

$3,931

Portfolio

turnover

rate

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

26.85%

22.77%

33.93%

a

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Year

Ended

September

30,

2020

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$31.53

$25.06

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.16)

(0.31)

(0.11)

Net

realized

and

unrealized

gains

(losses)

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

(4.10)

6.99

5.01

Total

from

investment

operations

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

(4.26)

6.68

4.90

Less

distributions

from:

Net

realized

gains

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

(0.18)

(0.21)

—

Net

asset

value,

end

of

period

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

$27.09

$31.53

$25.06

Total

return

d

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

(13.61)%

26.79%

24.31%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.64%

1.66%

1.65%

Expenses

net

of

waiver

and

payments

by

affiliates

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

1.35%

f

1.38%

f

1.04%

Net

investment

(loss)

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

(1.06)%

(1.05)%

(0.77)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$807

$984

$643

Portfolio

turnover

rate

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

26.85%

22.77%

33.93%

a

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

51

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Year

Ended

September

30,

2020

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$31.78

$25.10

$20.16

Income

from

investment

operations

b

:

Net

investment

(loss)

c

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

(0.07)

(0.13)

(0.07)

Net

realized

and

unrealized

gains

(losses)

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

(4.14)

7.02

5.01

Total

from

investment

operations

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

(4.21)

6.89

4.94

Less

distributions

from:

Net

realized

gains

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

(0.18)

(0.21)

—

Net

asset

value,

end

of

period

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

$27.39

$31.78

$25.10

Total

return

d

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

(13.34)%

27.59%

24.50%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

1.03%

1.05%

2.08%

Expenses

net

of

waiver

and

payments

by

affiliates

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

0.73%

f

0.77%

f

0.85%

Net

investment

(loss)

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

(0.43)%

(0.44)%

(0.52)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$65

$75

$65

Portfolio

turnover

rate

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

26.85%

22.77%

33.93%

a

For

the

period

February

14,

2020

(effective

date)

to

September

30,

2020.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Focused

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$31.75

$25.10

$17.62

$17.24

$13.36

$10.93

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.08)

(0.16)

(0.09)

(0.06)

(0.05)

(0.02)

Net

realized

and

unrealized

gains

(losses)

(4.14)

7.02

8.66

0.52

3.93

2.49

Total

from

investment

operations

........

(4.22)

6.86

8.57

0.46

3.88

2.47

Less

distributions

from:

Net

investment

income

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

—

—

—

(0.01)

—

(0.01)

Net

realized

gains

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

(0.18)

(0.21)

(1.09)

(0.07)

—

(0.03)

Total

distributions

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

(0.18)

(0.21)

(1.09)

(0.08)

—

(0.04)

Net

asset

value,

end

of

period

..........

$27.35

$31.75

$25.10

$17.62

$17.24

$13.36

Total

return

c

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

(13.38)%

27.47%

51.20%

2.80%

29.04%

22.78%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.13%

1.12%

2.04%

2.41%

2.23%

2.31%

Expenses

net

of

waiver

and

payments

by

affiliates

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

0.85%

e

0.85%

e

0.88%

1.00%

1.00%

e

1.00%

e

Net

investment

(loss)

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

(0.56)%

(0.53)%

(0.41)%

(0.36)%

(0.34)%

(0.20)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$13,410

$25,041

$16,747

$4,404

$4,310

$3,341

Portfolio

turnover

rate

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

26.85%

22.77%

33.93%

28.65%

14.47%

28.48%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited),

March

31,

2022

Franklin

Focused

Growth

Fund

franklintempleton.com

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

101.5%

Aerospace

&

Defense

1.1%

a

Axon

Enterprise,

Inc.

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

United

States

8,000

$

1,101,840

Automobiles

6.0%

a

Tesla,

Inc.

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

United

States

5,400

5,819,040

Capital

Markets

2.3%

MSCI,

Inc.

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

United

States

4,500

2,262,960

Electric

Utilities

4.1%

NextEra

Energy,

Inc.

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

United

States

46,500

3,939,015

Energy

Equipment

&

Services

1.0%

Baker

Hughes

Co.

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

United

States

25,400

924,814

Entertainment

0.6%

a

Sea

Ltd.,

ADR

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

Taiwan

4,734

567,086

Equity

Real

Estate

Investment

Trusts

(REITs)

2.1%

SBA

Communications

Corp.

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

United

States

6,000

2,064,600

Food

&

Staples

Retailing

4.7%

Costco

Wholesale

Corp.

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

United

States

8,000

4,606,800

Health

Care

Equipment

&

Supplies

7.9%

Abbott

Laboratories

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

United

States

20,000

2,367,200

a

IDEXX

Laboratories,

Inc.

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

United

States

5,000

2,735,300

a

Intuitive

Surgical,

Inc.

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

United

States

8,500

2,564,280

7,666,780

Health

Care

Technology

1.1%

a

Veeva

Systems,

Inc.,

A

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

United

States

5,000

1,062,300

Interactive

Media

&

Services

5.7%

a

Alphabet,

Inc.,

A

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

United

States

2,000

5,562,700

Internet

&

Direct

Marketing

Retail

11.1%

a

Amazon.com,

Inc.

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

United

States

3,000

9,779,850

a

MercadoLibre

,

Inc.

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

Brazil

800

951,584

10,731,434

IT

Services

8.4%

a,b

Adyen

NV,

144A,

Reg

S

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

Netherlands

1,000

1,980,963

a

Cloudflare

,

Inc.,

A

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

United

States

4,293

513,872

Mastercard

,

Inc.,

A

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

United

States

11,000

3,931,180

a

Shopify,

Inc.,

A

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

Canada

2,500

1,690,602

8,116,617

Life

Sciences

Tools

&

Services

5.1%

Danaher

Corp.

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

United

States

13,000

3,813,290

a

Repligen

Corp.

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

United

States

6,000

1,128,540

4,941,830

Metals

&

Mining

1.0%

Freeport-McMoRan,

Inc.

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

United

States

19,177

953,864

Personal

Products

1.3%

Estee

Lauder

Cos.,

Inc.

(The),

A

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

United

States

4,500

1,225,440

Road

&

Rail

0.5%

Canadian

Pacific

Railway

Ltd.

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

Canada

6,067

500,770

Semiconductors

&

Semiconductor

Equipment

16.1%

a

Advanced

Micro

Devices,

Inc.

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

United

States

15,000

1,640,100

Analog

Devices,

Inc.

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

United

States

14,000

2,312,520

ASML

Holding

NV,

NYRS

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

Netherlands

5,700

3,807,201

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Focused

Growth

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

s

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

NVIDIA

Corp.

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

United

States

29,000

$

7,912,940

15,672,761

Software

21.4%

a

Atlassian

Corp.

plc,

A

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

United

States

6,000

1,762,980

a

HubSpot

,

Inc.

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

United

States

2,000

949,880

Intuit,

Inc.

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

United

States

2,100

1,009,764

Microsoft

Corp.

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

United

States

33,000

10,174,230

a

Procore

Technologies,

Inc.

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

United

States

16,000

927,360

a

salesforce.com,

Inc.

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

United

States

7,000

1,486,240

a

ServiceNow

,

Inc.

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

United

States

6,300

3,508,407

a

Synopsys,

Inc.

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

United

States

3,000

999,810

20,818,671

Total

Common

Stocks

(Cost

$83,061,365)

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

98,539,322

Short

Term

Investments

2.1%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

2.1%

c,d

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

2,071,646

2,071,646

Total

Money

Market

Funds

(Cost

$2,071,646)

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

2,071,646

Total

Short

Term

Investments

(Cost

$2,071,646

)

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

2,071,646

a

Total

Investments

(Cost

$85,133,011)

103.6%

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

$100,610,968

Other

Assets,

less

Liabilities

(3.6)%

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

(3,508,929)

Net

Assets

100.0%

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

$97,102,039

See

abbreviations

on

page

142

.

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

March

31,

2022,

the

value

of

this

security

was

$1,980,963,

representing

2.0%

of

net

assets.

c

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

d

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

55

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$151.73

$129.91

$110.04

$107.59

$91.61

$78.54

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.03)

(0.06)

0.33

0.46

0.41

0.40

Net

realized

and

unrealized

gains

(losses)

(2.45)

32.67

25.99

3.47

18.18

15.56

Total

from

investment

operations

........

(2.48)

32.61

26.32

3.93

18.59

15.96

Less

distributions

from:

Net

investment

income

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

—

(0.18)

(0.46)

(0.44)

(0.36)

(0.39)

Net

realized

gains

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

(13.82)

(10.61)

(5.99)

(1.04)

(2.25)

(2.50)

Total

distributions

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

(13.82)

(10.79)

(6.45)

(1.48)

(2.61)

(2.89)

Net

asset

value,

end

of

period

..........

$135.43

$151.73

$129.91

$110.04

$107.59

$91.61

Total

return

c

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

(2.14)%

26.44%

25.09%

3.79%

20.72%

21.12%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.78%

0.79%

0.82%

0.83%

0.83%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.78%

f

0.79%

f

0.81%

0.83%

f

0.83%

f

0.87%

Net

investment

income

(loss)

..........

(0.05)%

(0.04)%

0.29%

0.45%

0.41%

0.47%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$12,145,775

$12,927,577

$10,990,297

$9,157,154

$9,044,834

$8,051,641

Portfolio

turnover

rate

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

3.27%

g

6.04%

g

9.01%

4.91%

g

6.05%

g

5.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

14.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$134.93

$117.27

$100.21

$98.38

$84.25

$72.60

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.51)

(1.01)

(0.47)

(0.29)

(0.30)

(0.21)

Net

realized

and

unrealized

gains

(losses)

(2.07)

29.28

23.52

3.16

16.68

14.36

Total

from

investment

operations

........

(2.58)

28.27

23.05

2.87

16.38

14.15

Less

distributions

from:

Net

realized

gains

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

(13.82)

(10.61)

(5.99)

(1.04)

(2.25)

(2.50)

Net

asset

value,

end

of

period

..........

$118.53

$134.93

$117.27

$100.21

$98.38

$84.25

Total

return

c

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

(2.51)%

25.51%

24.16%

3.02%

19.82%

20.21%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.53%

1.54%

1.57%

1.58%

1.58%

1.63%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.53%

f

1.54%

f

1.56%

1.58%

f

1.58%

f

1.62%

Net

investment

(loss)

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

(0.80)%

(0.79)%

(0.46)%

(0.30)%

(0.34)%

(0.28)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$592,494

$666,348

$727,093

$704,217

$1,060,258

$930,751

Portfolio

turnover

rate

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

3.27%

g

6.04%

g

9.01%

4.91%

g

6.05%

g

5.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

14.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

57

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$150.77

$129.28

$109.49

$107.00

$91.13

$78.14

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.22)

(0.41)

0.05

0.21

0.16

0.19

Net

realized

and

unrealized

gains

(losses)

(2.40)

32.51

25.86

3.46

18.09

15.51

Total

from

investment

operations

........

(2.62)

32.10

25.91

3.67

18.25

15.70

Less

distributions

from:

Net

investment

income

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

—

—

(0.13)

(0.14)

(0.13)

(0.21)

Net

realized

gains

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

(13.82)

(10.61)

(5.99)

(1.04)

(2.25)

(2.50)

Total

distributions

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

(13.82)

(10.61)

(6.12)

(1.18)

(2.38)

(2.71)

Net

asset

value,

end

of

period

..........

$134.33

$150.77

$129.28

$109.49

$107.00

$91.13

Total

return

c

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

(2.25)%

26.13%

24.78%

3.54%

20.42%

20.81%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.03%

1.04%

1.07%

1.08%

1.08%

1.13%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.03%

f

1.04%

f

1.06%

1.08%

f

1.08%

f

1.12%

Net

investment

income

(loss)

..........

(0.30)%

(0.29)%

0.04%

0.20%

0.16%

0.22%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$340,260

$395,301

$420,082

$435,331

$524,960

$510,317

Portfolio

turnover

rate

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

3.27%

g

6.04%

g

9.01%

4.91%

g

6.05%

g

5.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

14.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$152.40

$130.31

$110.37

$107.90

$91.90

$78.79

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.20

0.41

0.71

0.83

0.77

0.74

Net

realized

and

unrealized

gains

(losses)

(2.46)

32.76

26.06

3.47

18.22

15.59

Total

from

investment

operations

........

(2.26)

33.17

26.77

4.30

18.99

16.33

Less

distributions

from:

Net

investment

income

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

(0.10)

(0.47)

(0.84)

(0.79)

(0.74)

(0.72)

Net

realized

gains

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

(13.82)

(10.61)

(5.99)

(1.04)

(2.25)

(2.50)

Total

distributions

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

(13.92)

(11.08)

(6.83)

(1.83)

(2.99)

(3.22)

Net

asset

value,

end

of

period

..........

$136.22

$152.40

$130.31

$110.37

$107.90

$91.90

Total

return

c

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

(1.98)%

26.86%

25.51%

4.16%

21.17%

21.61%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.46%

0.47%

0.48%

0.48%

0.47%

0.46%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.46%

f

0.47%

f

0.48%

f

0.48%

f

0.46%

0.45%

Net

investment

income

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

0.28%

0.29%

0.63%

0.80%

0.78%

0.89%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,741,957

$3,113,946

$2,999,370

$2,545,800

$2,634,455

$1,700,993

Portfolio

turnover

rate

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

3.27%

g

6.04%

g

9.01%

4.91%

g

6.05%

g

5.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

14.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

59

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$152.47

$130.38

$110.41

$107.95

$91.90

$78.80

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.15

0.30

0.62

0.72

0.66

0.60

Net

realized

and

unrealized

gains

(losses)

(2.47)

32.79

26.07

3.47

18.23

15.61

Total

from

investment

operations

........

(2.32)

33.09

26.69

4.19

18.89

16.21

Less

distributions

from:

Net

investment

income

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

—

(0.39)

(0.73)

(0.69)

(0.59)

(0.61)

Net

realized

gains

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

(13.82)

(10.61)

(5.99)

(1.04)

(2.25)

(2.50)

Total

distributions

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

(13.82)

(11.00)

(6.72)

(1.73)

(2.84)

(3.11)

Net

asset

value,

end

of

period

..........

$136.33

$152.47

$130.38

$110.41

$107.95

$91.90

Total

return

c

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

(2.02)%

26.76%

25.41%

4.05%

21.02%

21.43%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.53%

0.54%

0.57%

0.58%

0.58%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.53%

f

0.54%

f

0.56%

0.58%

f

0.58%

f

0.62%

Net

investment

income

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

0.20%

0.21%

0.54%

0.70%

0.66%

0.72%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,860,036

$4,229,679

$3,549,412

$3,154,342

$3,139,208

$2,801,153

Portfolio

turnover

rate

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

3.27

%

g

6.04%

g

9.01%

4.91%

g

6.05%

g

5.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

14.

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited),

March

31,

2022

Franklin

Growth

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

99.5%

Aerospace

&

Defense

4.3%

BWX

Technologies,

Inc.

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

United

States

1,391,394

$

74,940,481

Lockheed

Martin

Corp.

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

United

States

395,654

174,641,675

Northrop

Grumman

Corp.

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

United

States

806,308

360,597,064

Raytheon

Technologies

Corp.

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

United

States

2,440,830

241,813,028

851,992,248

Auto

Components

0.4%

a

Aptiv

plc

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

United

States

605,448

72,478,180

Automobiles

1.0%

a

Lucid

Group,

Inc.

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

United

States

2,621,705

66,591,307

a,b

Rivian

Automotive,

Inc.,

A

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

United

States

851,137

42,761,123

a

Tesla,

Inc.

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

United

States

88,100

94,936,560

204,288,990

Beverages

2.8%

Brown-Forman

Corp.,

B

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

United

States

1,594,103

106,836,783

Constellation

Brands,

Inc.,

A

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

United

States

547,076

126,002,544

a

Monster

Beverage

Corp.

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

United

States

2,672,545

213,536,346

PepsiCo,

Inc.

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

United

States

637,643

106,728,685

553,104,358

Biotechnology

1.8%

AbbVie,

Inc.

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

United

States

451,255

73,152,948

Amgen,

Inc.

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

United

States

527,905

127,657,987

a

Argenx

SE,

ADR

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

Netherlands

31,400

9,900,734

a

Mirati

Therapeutics,

Inc.

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

United

States

235,999

19,403,838

a

Neurocrine

Biosciences,

Inc.

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

United

States

368,462

34,543,312

a

PTC

Therapeutics,

Inc.

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

United

States

962,564

35,913,263

a

Regeneron

Pharmaceuticals,

Inc.

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

United

States

74,624

52,118,894

352,690,976

Building

Products

1.2%

Allegion

plc

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

United

States

686,691

75,384,938

Trane

Technologies

plc

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

United

States

1,079,086

164,776,432

240,161,370

Capital

Markets

4.4%

BlackRock,

Inc.

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

United

States

225,749

172,510,613

Charles

Schwab

Corp.

(The)

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

United

States

2,992,369

252,286,630

Intercontinental

Exchange,

Inc.

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

United

States

1,398,216

184,732,298

S&P

Global,

Inc.

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

United

States

362,909

148,858,014

Tradeweb

Markets,

Inc.,

A

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

United

States

1,169,031

102,722,754

861,110,309

Chemicals

2.3%

Air

Products

and

Chemicals,

Inc.

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

United

States

490,494

122,579,355

a,b

Danimer

Scientific,

Inc.

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

United

States

214,255

1,255,534

Ecolab,

Inc.

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

United

States

611,807

108,020,644

Linde

plc

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

United

Kingdom

712,720

227,664,150

459,519,683

Commercial

Services

&

Supplies

0.4%

Republic

Services,

Inc.

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

United

States

638,605

84,615,163

Construction

Materials

0.6%

Martin

Marietta

Materials,

Inc.

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

United

States

311,440

119,870,142

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

61

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electric

Utilities

0.9%

NextEra

Energy,

Inc.

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

United

States

2,013,942

$

170,601,027

Electrical

Equipment

0.5%

AMETEK,

Inc.

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

United

States

686,691

91,453,507

Electronic

Equipment,

Instruments

&

Components

3.0%

Amphenol

Corp.,

A

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

United

States

2,841,284

214,090,750

Cognex

Corp.

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

United

States

409,421

31,586,830

a

Keysight

Technologies,

Inc.

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

United

States

657,494

103,864,327

TE

Connectivity

Ltd.

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

Switzerland

1,833,361

240,133,624

589,675,531

Entertainment

1.2%

a

ROBLOX

Corp.,

A

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

United

States

1,218,226

56,330,770

a

Walt

Disney

Co.

(The)

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

United

States

1,267,339

173,828,217

230,158,987

Equity

Real

Estate

Investment

Trusts

(REITs)

1.0%

Crown

Castle

International

Corp.

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

United

States

1,122,315

207,179,349

Food

&

Staples

Retailing

0.1%

Costco

Wholesale

Corp.

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

United

States

37,400

21,536,790

Food

Products

0.2%

Lamb

Weston

Holdings,

Inc.

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

United

States

537,899

32,225,529

Health

Care

Equipment

&

Supplies

4.8%

Abbott

Laboratories

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

United

States

1,249,657

147,909,402

a

Edwards

Lifesciences

Corp.

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

United

States

1,177,188

138,578,571

a

Haemonetics

Corp.

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

United

States

980,987

62,017,998

a

Intuitive

Surgical,

Inc.

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

United

States

1,121,248

338,258,097

Stryker

Corp.

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

United

States

402,694

107,660,241

Teleflex,

Inc.

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

United

States

423,207

150,166,540

944,590,849

Health

Care

Providers

&

Services

1.0%

a

Guardant

Health,

Inc.

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

United

States

273,430

18,112,003

a

Laboratory

Corp.

of

America

Holdings

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

United

States

381,522

100,592,090

UnitedHealth

Group,

Inc.

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

United

States

153,210

78,132,504

196,836,597

Health

Care

Technology

0.3%

a

Certara

,

Inc.

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

United

States

248,652

5,341,045

a

Veeva

Systems,

Inc.,

A

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

United

States

270,987

57,573,898

62,914,943

Hotels,

Restaurants

&

Leisure

0.9%

a

Airbnb,

Inc.,

A

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

United

States

252,739

43,410,451

a

Booking

Holdings,

Inc.

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

United

States

29,049

68,220,124

a

Las

Vegas

Sands

Corp.

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

United

States

1,918,347

74,566,148

186,196,723

Interactive

Media

&

Services

4.5%

a

Alphabet,

Inc.,

A

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

United

States

146,800

408,302,180

a

Alphabet,

Inc.,

C

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

United

States

149,926

418,741,819

a

Match

Group,

Inc.

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

United

States

635,209

69,072,626

896,116,625

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Internet

&

Direct

Marketing

Retail

4.5%

a

Amazon.com,

Inc.

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

United

States

269,640

$

879,012,918

IT

Services

5.9%

a,c

Adyen

NV,

144A,

Reg

S

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

Netherlands

59,417

117,702,902

Automatic

Data

Processing,

Inc.

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

United

States

109,031

24,808,914

a,d,e

Canva

,

Inc.

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

Australia

25,413

20,070,622

a

Marqeta

,

Inc.,

A

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

United

States

814,946

8,997,004

Mastercard

,

Inc.,

A

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

United

States

1,080,002

385,971,115

a

Okta

,

Inc.

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

United

States

392,756

59,290,446

a

Paymentus

Holdings,

Inc.,

A

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

United

States

367,494

7,746,773

a

PayPal

Holdings,

Inc.

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

United

States

585,237

67,682,659

a

Snowflake,

Inc.,

A

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

United

States

395,392

90,596,169

a

Twilio

,

Inc.,

A

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

United

States

451,116

74,348,428

Visa,

Inc.,

A

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

United

States

1,373,381

304,574,704

1,161,789,736

Life

Sciences

Tools

&

Services

6.2%

a

10X

Genomics,

Inc.,

A

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

United

States

314,320

23,910,322

Agilent

Technologies,

Inc.

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

United

States

1,275,282

168,758,067

Danaher

Corp.

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

United

States

1,130,127

331,500,153

a

Illumina,

Inc.

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

United

States

590,097

206,179,892

a

Mettler

-Toledo

International,

Inc.

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

United

States

237,891

326,669,542

Thermo

Fisher

Scientific,

Inc.

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

United

States

278,661

164,591,120

1,221,609,096

Machinery

3.8%

Deere

&

Co.

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

United

States

461,182

191,602,674

Dover

Corp.

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

United

States

246,900

38,738,610

Illinois

Tool

Works,

Inc.

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

United

States

980,987

205,418,678

Ingersoll

Rand,

Inc.

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

United

States

1,925,288

96,938,251

Otis

Worldwide

Corp.

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

United

States

520,579

40,058,554

a

Proterra

,

Inc.

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

United

States

2,460,153

18,500,350

Stanley

Black

&

Decker,

Inc.

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

United

States

778,762

108,863,140

Xylem,

Inc.

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

United

States

530,104

45,196,667

745,316,924

Media

0.5%

Cable

One,

Inc.

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

United

States

47,674

69,806,178

Comcast

Corp.,

A

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

United

States

787,868

36,887,980

106,694,158

Personal

Products

0.3%

Estee

Lauder

Cos.,

Inc.

(The),

A

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

United

States

184,612

50,273,540

a

Olaplex

Holdings,

Inc.

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

United

States

360,814

5,639,523

55,913,063

Pharmaceuticals

4.1%

AstraZeneca

plc,

ADR

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

United

Kingdom

2,184,542

144,922,516

a

Catalent

,

Inc.

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

United

States

2,412,989

267,600,480

Eli

Lilly

&

Co.

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

United

States

1,142,881

327,286,832

Johnson

&

Johnson

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

United

States

335,433

59,448,791

799,258,619

Professional

Services

1.3%

a

CoStar

Group,

Inc.

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

United

States

1,275,638

84,970,247

Equifax,

Inc.

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

United

States

481,120

114,073,552

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

63

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Professional

Services

(continued)

Verisk

Analytics,

Inc.

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

United

States

248,824

$

53,405,095

252,448,894

Road

&

Rail

3.7%

Canadian

Pacific

Railway

Ltd.

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

Canada

1,394,455

115,098,316

JB

Hunt

Transport

Services,

Inc.

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

United

States

490,494

98,486,290

a

Uber

Technologies,

Inc.

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

United

States

999,629

35,666,763

Union

Pacific

Corp.

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

United

States

1,741,780

475,871,714

725,123,083

Semiconductors

&

Semiconductor

Equipment

7.3%

ASML

Holding

NV,

NYRS

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

Netherlands

402,541

268,869,210

Lam

Research

Corp.

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

United

States

29,431

15,822,400

Monolithic

Power

Systems,

Inc.

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

United

States

441,446

214,401,493

NVIDIA

Corp.

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

United

States

2,017,847

550,589,733

NXP

Semiconductors

NV

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

China

688,867

127,495,504

Texas

Instruments,

Inc.

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

United

States

1,373,381

251,987,946

1,429,166,286

Software

16.7%

a

Adobe,

Inc.

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

United

States

167,184

76,172,374

a,b

AppLovin

Corp.,

A

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

United

States

255,331

14,061,078

a

Atlassian

Corp.

plc,

A

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

United

States

275,367

80,911,086

a

Autodesk,

Inc.

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

United

States

767,572

164,529,058

a

Avalara,

Inc.

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

United

States

849,322

84,516,032

a

Bill.com

Holdings,

Inc.

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

United

States

1,062,990

241,075,502

a,d,e

Checkout

Payments

Group

Ltd.,

B

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

United

Kingdom

96,603

30,000,062

a

Crowdstrike

Holdings,

Inc.,

A

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

United

States

137,545

31,233,719

a,b

Gitlab

,

Inc.,

A

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

United

States

102,093

5,558,964

a,b

HashiCorp

,

Inc.,

A

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

United

States

189,231

10,218,474

Intuit,

Inc.

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

United

States

806,313

387,707,543

Microsoft

Corp.

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

United

States

3,245,069

1,000,487,223

a

Paycom

Software,

Inc.

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

United

States

185,577

64,280,161

a

Procore

Technologies,

Inc.

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

United

States

69,092

4,004,572

a

PTC,

Inc.

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

United

States

1,181,307

127,250,390

a

salesforce.com,

Inc.

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

United

States

553,101

117,434,404

a

ServiceNow

,

Inc.

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

United

States

787,093

438,324,221

a,d,e

Stripe,

Inc.,

B

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

United

States

540,043

15,720,690

a

Synopsys,

Inc.

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

United

States

521,046

173,649,001

a

Tyler

Technologies,

Inc.

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

United

States

118,218

52,594,006

a

Workday,

Inc.,

A

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

United

States

736,048

176,254,054

3,295,982,614

Technology

Hardware,

Storage

&

Peripherals

4.9%

Apple,

Inc.

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

United

States

5,488,460

958,340,001

Textiles,

Apparel

&

Luxury

Goods

1.3%

NIKE,

Inc.,

B

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

United

States

1,869,347

251,539,332

Trading

Companies

&

Distributors

0.8%

Fastenal

Co.

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

United

States

2,697,023

160,203,166

Water

Utilities

0.6%

American

Water

Works

Co.,

Inc.

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

United

States

686,691

113,667,961

Total

Common

Stocks

(Cost

$5,917,918,342)

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

19,585,383,727

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Convertible

Preferred

Stocks

0.3%

IT

Services

0.0%

†

a,d,e

Canva

,

Inc.,

A

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

Australia

2,353

$

1,858,347

a,d,e

Canva

,

Inc.,

A-3

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

Australia

94

74,239

a,d,e

Canva

,

Inc.,

A-4

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

Australia

8

6,318

a,d,e

Canva

,

Inc.,

A-5

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

Australia

5

3,949

1,942,853

Software

0.3%

a,d,e

Gusto,

Inc.,

E

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

United

States

822,494

16,732,791

a,d,e

OneTrust

LLC,

C

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

United

States

849,894

13,603,370

a,d,e

Stripe,

Inc.,

H

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

United

States

756,137

22,011,201

52,347,362

Total

Convertible

Preferred

Stocks

(Cost

$76,200,357)

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

54,290,215

Total

Long

Term

Investments

(Cost

$5,994,118,699)

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

19,639,673,942

a

Short

Term

Investments

0.5%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

0.4%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

77,833,192

77,833,192

Total

Money

Market

Funds

(Cost

$77,833,192)

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

77,833,192

h

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.1%

a

a

a

a

a

Money

Market

Funds

0.1%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

18,944,000

18,944,000

Principal

Amount

*

Repurchase

Agreements

0.0%

†

i

Joint

Repurchase

Agreement,

BNP

Paribas

SA,

0.28%,

4/01/22

(Maturity

Value

$4,736,366)

Collateralized

by

U.S.

Treasury

Bond,

6%,

2/15/26;

U.S.

Treasury

Bonds,

Strips,

8/15/24

-

2/15/26;

U.S.

Treasury

Notes,

0.125%

-

2.875%,

10/31/22

-

1/31/27;

and

U.S.

Treasury

Notes,

Index

Linked,

0.125%

-

0.625%,

1/15/24

-

7/15/26

(valued

at

$4,831,056)

4,736,329

4,736,329

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$23,680,329)

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

23,680,329

Total

Short

Term

Investments

(Cost

$101,513,521

)

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

101,513,521

a

Total

Investments

(Cost

$6,095,632,220)

100.3%

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

$19,741,187,463

Other

Assets,

less

Liabilities

(0.3)%

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

(60,665,486)

Net

Assets

100.0%

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

$19,680,521,977

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

65

See

Abbreviations

on

page

142

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

March

31,

2022.

See

Note

1(g).

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

March

31,

2022,

the

value

of

this

security

was

$117,702,902,

representing

0.6%

of

net

assets.

d

Fair

valued

using

significant

unobservable

inputs.

See

Note

15

regarding

fair

value

measurements.

e

See

Note

10

regarding

restricted

securities.

f

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

h

See

Note

1(g)

regarding

securities

on

loan.

i

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Custodian

Funds

Financial

Highlights

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,

2022

(unaudited)

Year

Ended

September

30,

Year

Ended

September

30,

2018

a

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$2.47

$2.08

$2.30

$2.32

$2.31

Income

from

investment

operations

b

:

Net

investment

income

(loss)

c

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

0.03

0.08

0.08

0.08

(0.04)

Net

realized

and

unrealized

gains

(losses)

...........

0.13

0.42

(0.18)

0.02

0.05

Total

from

investment

operations

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

0.16

0.50

(0.10)

0.10

0.01

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.11)

(0.12)

(0.12)

—

Net

realized

gains

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

(0.05)

—

—

—

—

Total

distributions

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

(0.11)

(0.11)

(0.12)

(0.12)

—

Net

asset

value,

end

of

period

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

$2.52

$2.47

$2.08

$2.30

$2.32

Total

return

d

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

6.54%

24.55%

(4.48)%

4.40%

0.43%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

......

0.72%

0.72%

0.71%

0.72%

0.71%

Expenses

net

of

waiver

and

payments

by

affiliates

f

......

0.71%

0.72%

g

0.70%

0.72%

g

0.71%

g

Net

investment

income

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

2.69%

3.19%

3.64%

3.92%

3.89%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$18,177,132

$16,044,379

$10,072,437

$7,427,468

$107,057

Portfolio

turnover

rate

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

31.91%

68.93%

69.13%

43.63%

49.95%

a

For

the

period

September

10,

2018

(effective

date)

to

September

30,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

67

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.48

$2.08

$2.30

$2.32

$2.39

$2.25

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.03

0.08

0.08

0.09

0.09

0.10

Net

realized

and

unrealized

gains

(losses)

0.13

0.43

(0.18)

0.01

(0.04)

0.16

Total

from

investment

operations

........

0.16

0.51

(0.10)

0.10

0.05

0.26

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.11)

(0.12)

(0.12)

(0.12)

(0.12)

Net

realized

gains

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

(0.05)

—

—

—

—

—

Total

distributions

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

(0.11)

(0.11)

(0.12)

(0.12)

(0.12)

(0.12)

Net

asset

value,

end

of

period

..........

$2.53

$2.48

$2.08

$2.30

$2.32

$2.39

Total

return

c

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

6.60%

25.19%

(4.39)%

4.50%

2.18%

11.86%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.62%

0.62%

0.61%

0.62%

0.61%

0.62%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.61%

0.62%

f

0.60%

0.62%

f

0.61%

f

0.61%

Net

investment

income

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

2.78%

3.32%

3.74%

4.02%

3.99%

4.22%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$36,252,710

$35,704,730

$32,693,224

$39,625,649

$42,929,573

$46,505,632

Portfolio

turnover

rate

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

31.91%

68.93%

69.13%

43.63%

49.95%

34.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.52

$2.12

$2.34

$2.35

$2.42

$2.27

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.03

0.07

0.07

0.08

0.08

0.09

Net

realized

and

unrealized

gains

(losses)

0.12

0.43

(0.18)

0.02

(0.04)

0.17

Total

from

investment

operations

........

0.15

0.50

(0.11)

0.10

0.04

0.26

Less

distributions

from:

Net

investment

income

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

(0.05)

(0.10)

(0.11)

(0.11)

(0.11)

(0.11)

Net

realized

gains

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

(0.05)

—

—

—

—

—

Total

distributions

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

(0.10)

(0.10)

(0.11)

(0.11)

(0.11)

(0.11)

Net

asset

value,

end

of

period

..........

$2.57

$2.52

$2.12

$2.34

$2.35

$2.42

Total

return

c

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

6.21%

24.09%

(4.80)%

4.35%

1.61%

11.63%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.12%

1.13%

1.11%

1.12%

1.11%

1.12%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.11%

1.12%

1.10%

1.12%

f

1.11%

f

1.11%

Net

investment

income

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

2.27%

2.84%

3.24%

3.52%

3.49%

3.72%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$7,216,737

$7,507,658

$9,339,238

$13,488,627

$19,895,441

$23,036,875

Portfolio

turnover

rate

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

31.91%

68.93%

69.13%

43.63%

49.95%

34.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

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,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.43

$2.04

$2.26

$2.28

$2.35

$2.21

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.03

0.07

0.07

0.08

0.08

0.09

Net

realized

and

unrealized

gains

(losses)

0.11

0.43

(0.18)

0.01

(0.04)

0.16

Total

from

investment

operations

........

0.14

0.50

(0.11)

0.09

0.04

0.25

Less

distributions

from:

Net

investment

income

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

(0.05)

(0.11)

(0.11)

(0.11)

(0.11)

(0.11)

Net

realized

gains

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

(0.05)

—

—

—

—

—

Total

distributions

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

(0.10)

(0.11)

(0.11)

(0.11)

(0.11)

(0.11)

Net

asset

value,

end

of

period

..........

$2.47

$2.43

$2.04

$2.26

$2.28

$2.35

Total

return

c

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

6.11%

24.75%

(4.82)%

4.20%

1.86%

11.67%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.97%

0.97%

0.96%

0.97%

0.96%

0.97%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.96%

0.97%

f

0.95%

0.97%

f

0.96%

f

0.96%

Net

investment

income

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

2.44%

2.97%

3.40%

3.67%

3.64%

3.87%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$288,745

$257,109

$221,584

$265,531

$296,098

$361,603

Portfolio

turnover

rate

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

31.91%

68.93%

69.13%

43.63%

49.95%

34.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.47

$2.07

$2.29

$2.30

$2.37

$2.23

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.04

0.08

0.09

0.10

0.10

0.11

Net

realized

and

unrealized

gains

(losses)

0.11

0.44

(0.19)

0.01

(0.05)

0.15

Total

from

investment

operations

........

0.15

0.52

(0.10)

0.11

0.05

0.26

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.12)

(0.12)

(0.12)

(0.12)

(0.12)

Net

realized

gains

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

(0.05)

—

—

—

—

—

Total

distributions

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

(0.11)

(0.12)

(0.12)

(0.12)

(0.12)

(0.12)

Net

asset

value,

end

of

period

..........

$2.51

$2.47

$2.07

$2.29

$2.30

$2.37

Total

return

c

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

6.30%

25.53%

(4.23)%

5.17%

2.40%

12.15%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.43%

0.43%

0.40%

0.41%

0.39%

0.39%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.41%

0.41%

0.39%

0.40%

0.39%

f

0.38%

Net

investment

income

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

3.02%

3.50%

3.96%

4.24%

4.21%

4.45%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,235,381

$748,355

$1,626,735

$1,902,027

$2,062,334

$1,815,977

Portfolio

turnover

rate

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

31.91%

68.93%

69.13%

43.63%

49.95%

34.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

71

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$2.46

$2.07

$2.28

$2.30

$2.37

$2.23

Income

from

investment

operations

a

:

Net

investment

income

b

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

0.04

0.08

0.08

0.09

0.10

0.10

Net

realized

and

unrealized

gains

(losses)

0.11

0.43

(0.17)

0.01

(0.05)

0.16

Total

from

investment

operations

........

0.15

0.51

(0.09)

0.10

0.05

0.26

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.12)

(0.12)

(0.12)

(0.12)

(0.12)

Net

realized

gains

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

(0.05)

—

—

—

—

—

Total

distributions

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

(0.11)

(0.12)

(0.12)

(0.12)

(0.12)

(0.12)

Net

asset

value,

end

of

period

..........

$2.50

$2.46

$2.07

$2.28

$2.30

$2.37

Total

return

c

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

6.32%

24.98%

(3.86)%

4.65%

2.34%

12.09%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.47%

0.47%

0.46%

0.47%

0.46%

0.47%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.46%

0.47%

f

0.45%

0.47%

f

0.46%

f

0.46%

Net

investment

income

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

2.93%

3.46%

3.89%

4.17%

4.14%

4.37%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$12,799,284

$11,969,691

$9,712,076

$11,816,599

$11,328,761

$11,671,173

Portfolio

turnover

rate

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

31.91%

68.93%

69.13%

43.63%

49.95%

34.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited),

March

31,

2022

Franklin

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

37.2%

Aerospace

&

Defense

1.3%

Lockheed

Martin

Corp.

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

United

States

1,500,000

$

662,100,000

Raytheon

Technologies

Corp.

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

United

States

2,959,550

293,202,619

955,302,619

Banks

3.3%

Bank

of

America

Corp.

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

United

States

6,745,000

278,028,900

Barclays

plc

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

United

Kingdom

160,000,000

310,179,843

Citigroup,

Inc.

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

United

States

3,504,000

187,113,600

JPMorgan

Chase

&

Co.

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

United

States

7,022,500

957,307,200

Truist

Financial

Corp.

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

United

States

6,500,000

368,550,000

US

Bancorp

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

United

States

7,000,000

372,050,000

2,473,229,543

Beverages

0.5%

a

PepsiCo,

Inc.

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

United

States

2,250,000

376,605,000

Biotechnology

1.6%

a

AbbVie,

Inc.

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

United

States

4,500,000

729,495,000

a

Amgen,

Inc.

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

United

States

2,000,000

483,640,000

1,213,135,000

Capital

Markets

0.5%

a

Morgan

Stanley

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

United

States

4,000,000

349,600,000

Chemicals

0.7%

Air

Products

and

Chemicals,

Inc.

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

United

States

1,000,000

249,910,000

BASF

SE

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

Germany

5,500,000

313,875,705

563,785,705

Communications

Equipment

0.7%

Cisco

Systems,

Inc.

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

United

States

10,000,000

557,600,000

Containers

&

Packaging

0.3%

International

Paper

Co.

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

United

States

4,550,676

210,013,697

Diversified

Telecommunication

Services

2.7%

AT&T,

Inc.

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

United

States

20,000,000

472,600,000

BCE,

Inc.

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

Canada

7,000,000

388,002,399

TELUS

Corp.

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

Canada

4,000,000

104,491,102

Verizon

Communications,

Inc.

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

United

States

22,000,000

1,120,680,000

2,085,773,501

Electric

Utilities

5.2%

American

Electric

Power

Co.,

Inc.

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

United

States

8,000,000

798,160,000

a

Constellation

Energy

Corp.

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

United

States

2,000,000

112,500,000

Duke

Energy

Corp.

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

United

States

6,000,000

669,960,000

Edison

International

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

United

States

11,000,000

771,100,000

Entergy

Corp.

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

United

States

1,500,000

175,125,000

Exelon

Corp.

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

United

States

6,500,000

309,595,000

b

PG&E

Corp.

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

United

States

10,000,000

119,400,000

PPL

Corp.

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

United

States

3,000,000

85,680,000

Southern

Co.

(The)

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

United

States

13,000,000

942,630,000

3,984,150,000

Energy

Equipment

&

Services

0.3%

b,c

Weatherford

International

plc

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

United

States

7,000,000

233,100,000

Entertainment

0.1%

a,b

Walt

Disney

Co.

(The)

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

United

States

550,000

75,438,000

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

73

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Food

&

Staples

Retailing

0.4%

a

Walmart,

Inc.

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

United

States

2,000,500

$

297,914,460

Health

Care

Equipment

&

Supplies

0.6%

Medtronic

plc

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

United

States

4,000,000

443,800,000

Health

Care

Providers

&

Services

0.2%

b,c

CHS/Community

Health

Systems,

Inc.

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

United

States

10,000,000

118,700,000

Household

Products

0.4%

Procter

&

Gamble

Co.

(The)

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

United

States

2,250,000

343,800,000

Independent

Power

and

Renewable

Electricity

Producers

0.2%

Vistra

Corp.

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

United

States

5,500,000

127,875,000

Industrial

Conglomerates

1.3%

a

3M

Co.

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

United

States

1,800,000

267,984,000

a

Honeywell

International,

Inc.

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

United

States

730,000

142,043,400

Siemens

AG

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

Germany

4,000,000

553,944,443

963,971,843

Insurance

0.4%

MetLife,

Inc.

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

United

States

4,251,698

298,809,336

IT

Services

0.5%

a

International

Business

Machines

Corp.

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

United

States

3,000,000

390,060,000

Media

0.4%

Comcast

Corp.,

A

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

United

States

6,873,000

321,793,860

Metals

&

Mining

0.2%

d

BHP

Group

Ltd.,

ADR

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

Australia

1,250,000

96,562,500

d

Rio

Tinto

plc,

ADR

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

Australia

1,000,000

80,400,000

176,962,500

Multi-Utilities

2.7%

Dominion

Energy,

Inc.

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

United

States

9,000,000

764,730,000

DTE

Energy

Co.

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

United

States

3,500,000

462,735,000

Sempra

Energy

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

United

States

5,000,000

840,600,000

2,068,065,000

Oil,

Gas

&

Consumable

Fuels

4.2%

BP

plc,

ADR

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

United

Kingdom

10,000,000

294,000,000

Chesapeake

Energy

Corp.,

(USD

Traded)

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

United

States

2,300,000

200,100,000

a

Chevron

Corp.

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

United

States

8,000,000

1,302,640,000

a

Exxon

Mobil

Corp.

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

United

States

8,682,000

717,046,380

Shell

plc,

ADR

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

Netherlands

5,500,000

302,115,000

TotalEnergies

SE,

ADR

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

France

7,000,000

353,780,000

3,169,681,380

Personal

Products

0.6%

Unilever

plc

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

United

Kingdom

10,000,000

454,062,485

Pharmaceuticals

5.1%

AstraZeneca

plc,

ADR

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

United

Kingdom

5,000,000

331,700,000

Bayer

AG

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

Germany

5,000,000

342,041,840

Bristol-Myers

Squibb

Co.

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

United

States

12,000,000

876,360,000

a

Johnson

&

Johnson

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

United

States

5,500,000

974,765,000

a

Merck

&

Co.,

Inc.

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

United

States

4,500,000

369,225,000

a

Pfizer,

Inc.

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

United

States

11,500,000

595,355,000

Roche

Holding

AG

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

Switzerland

1,000,000

395,661,861

3,885,108,701

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

1.2%

a

Analog

Devices,

Inc.

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

United

States

82,000

$

13,544,760

a

Intel

Corp.

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

United

States

10,468,000

518,794,080

a

Texas

Instruments,

Inc.

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

United

States

2,000,000

366,960,000

899,298,840

Specialty

Retail

0.4%

a

Home

Depot,

Inc.

(The)

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

United

States

1,000,000

299,330,000

Tobacco

0.8%

British

American

Tobacco

plc

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

United

Kingdom

2,000,000

84,000,831

a

Philip

Morris

International,

Inc.

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

United

States

5,500,000

516,670,000

600,670,831

Wireless

Telecommunication

Services

0.4%

Vodafone

Group

plc

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

United

Kingdom

175,000,000

286,984,394

Total

Common

Stocks

(Cost

$23,781,583,401)

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

28,224,621,695

e

Equity-Linked

Securities

17.7%

Airlines

0.2%

f

BNP

Paribas

Issuance

BV

into

Delta

Air

Lines,

Inc.,

144A,

10%,

5/03/22

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

United

States

3,507,000

143,017,638

Automobiles

0.6%

f

Citigroup

Global

Markets

Holdings,

Inc.

into

General

Motors

Co.,

144A,

12%,

11/10/22

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

United

States

2,895,000

126,377,698

f

Merrill

Lynch

International

&

Co.

CV

into

Ford

Motor

Co.,

144A,

12%,

12/07/22

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

United

States

6,892,000

122,522,180

f

Royal

Bank

of

Canada

into

General

Motors

Co.,

144A,

12%,

3/17/23

United

States

4,900,000

229,385,061

478,284,939

Banks

2.5%

f

Barclays

Bank

plc

into

Truist

Financial

Corp.,

144A,

8%,

8/17/22

..

United

States

2,740,000

153,622,193

f

BNP

Paribas

Issuance

BV

into

Bank

of

America

Corp.,

144A,

9%,

4/13/22

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

United

States

7,200,000

302,118,837

f

Credit

Suisse

AG

into

Citigroup,

Inc.,

144A,

9%,

8/05/22

........

United

States

4,060,000

224,794,046

f

J.P.

Morgan

Structured

Products

BV

into

Bank

of

America

Corp.,

144A,

8.5%,

1/27/23

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

United

States

5,711,000

249,073,207

f

Mizuho

Markets

Cayman

LP

into

JPMorgan

Chase

&

Co.,

144A,

8%,

6/30/22

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

United

States

1,620,000

223,267,826

f

National

Bank

of

Canada

into

Bank

of

America

Corp.,

144A,

8%,

6/15/22

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

United

States

5,833,000

241,572,284

f

Societe

Generale

SA

into

Citigroup,

Inc.,

144A,

9%,

3/10/23

.....

United

States

4,091,000

233,207,522

f

UBS

AG

into

JPMorgan

Chase

&

Co.,

144A,

8.5%,

5/06/22

......

United

States

1,725,000

238,815,800

1,866,471,715

Biotechnology

0.7%

f

Goldman

Sachs

International

Bank

into

AbbVie,

Inc.,

144A,

9%,

1/25/23

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

United

States

1,740,000

257,218,521

f

National

Bank

of

Canada

into

AbbVie,

Inc.,

144A,

8.5%,

8/12/22

..

United

States

2,197,000

286,417,838

543,636,359

Capital

Markets

0.9%

f

Barclays

Bank

plc

into

Coinbase

Global,

Inc.,

144A,

15%,

2/10/23

.

United

States

1,000,000

194,685,381

f

Credit

Suisse

AG

into

Morgan

Stanley,

144A,

8.5%,

7/06/22

.....

United

States

2,970,000

258,754,476

f

J.P.

Morgan

Structured

Products

BV

into

Goldman

Sachs

Group,

Inc.

(The),

144A,

8.5%,

3/09/23

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

United

States

745,000

257,102,150

710,542,007

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

75

a

a

Country

Shares

a

Value

a

a

a

a

a

a

e

Equity-Linked

Securities

(continued)

Chemicals

0.4%

f

Citigroup

Global

Markets

Holdings,

Inc.

into

LyondellBasell

Industries

NV,

144A,

10%,

6/23/22

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

United

States

1,600,000

$

166,071,634

f

National

Bank

of

Canada

into

Air

Products

and

Chemicals,

Inc.,

144A,

8.5%,

4/13/22

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

United

States

590,000

150,888,554

316,960,188

Communications

Equipment

0.4%

f

Royal

Bank

of

Canada

into

Cisco

Systems,

Inc.,

144A,

8%,

12/02/22

United

States

4,700,000

261,813,117

Containers

&

Packaging

0.3%

f

Mizuho

Markets

Cayman

LP

into

International

Paper

Co.,

144A,

9%,

12/20/22

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

United

States

5,376,300

246,054,111

Electric

Utilities

0.2%

f

UBS

AG

into

NextEra

Energy,

Inc.,

144A,

8%,

3/17/23

..........

United

States

1,695,000

134,910,859

Energy

Equipment

&

Services

0.3%

f

Credit

Suisse

AG

into

Halliburton

Co.,

144A,

10%,

11/15/22

......

United

States

7,000,000

208,847,428

Entertainment

0.3%

f

Morgan

Stanley

Finance

II

Ltd.

into

Walt

Disney

Co.

(The),

144A,

8%,

2/23/23

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

United

States

1,815,000

248,911,758

Health

Care

Equipment

&

Supplies

0.4%

f

Barclays

Bank

plc

into

Medtronic

plc,

144A,

8%,

3/10/23

........

United

States

2,600,000

277,642,673

Health

Care

Providers

&

Services

0.4%

f

Citigroup

Global

Markets

Holdings,

Inc.

into

CVS

Health

Corp.,

144A,

8%,

5/18/22

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

United

States

3,287,000

285,024,609

Hotels,

Restaurants

&

Leisure

0.1%

f

Mizuho

Markets

Cayman

LP

into

Las

Vegas

Sands

Corp.,

144A,

12%,

8/29/22

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

United

States

1,734,000

68,287,655

Independent

Power

and

Renewable

Electricity

Producers

0.2%

f

Mizuho

Markets

Cayman

LP

into

Vistra

Corp.,

144A,

11%,

11/01/22

United

States

7,740,000

162,124,493

Industrial

Conglomerates

0.3%

f

Goldman

Sachs

International

Bank

into

Honeywell

International,

Inc.,

144A,

8.5%,

4/04/23

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

United

States

1,335,000

254,836,585

Insurance

0.7%

f

Barclays

Bank

plc

into

MetLife,

Inc.,

144A,

8.5%,

7/11/22

........

United

States

4,240,000

271,891,187

f

National

Bank

of

Canada

into

MetLife,

Inc.,

144A,

8.5%,

12/05/22

.

United

States

4,240,000

282,030,203

553,921,390

Internet

&

Direct

Marketing

Retail

0.7%

f

Citigroup

Global

Markets

Holdings,

Inc.

into

Bristol

Myers

Squibb

Co.,

144A,

8.5%,

12/22/22

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

United

States

4,400,000

279,868,106

f

Credit

Suisse

AG

into

Amazon.com,

Inc.,

144A,

8%,

2/17/23

.....

United

States

91,000

283,750,987

563,619,093

IT

Services

0.5%

f

Goldman

Sachs

International

Bank

into

Twilio,

Inc.,

144A,

12.5%,

3/03/23

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

United

States

923,000

162,036,729

f

UBS

AG

into

Fidelity

National

Information

Services,

Inc.,

144A,

8.5%,

9/23/22

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

United

States

2,188,000

225,440,143

387,476,872

Machinery

0.2%

f

Goldman

Sachs

International

Bank

into

Cummins,

Inc.,

144A,

8%,

1/10/23

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

United

States

650,000

138,063,577

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

a

a

Country

Shares

a

Value

a

a

a

a

a

a

e

Equity-Linked

Securities

(continued)

Media

0.3%

f

Societe

Generale

SA

into

Comcast

Corp.,

144A,

8%,

4/17/23

....

United

States

5,300,000

$

249,082,532

Metals

&

Mining

1.4%

f

Barclays

Bank

plc

into

Newmont

Corp.,

144A,

9.5%,

6/15/22

.....

United

States

3,278,000

252,260,142

f

Citigroup

Global

Markets

Holdings,

Inc.

into

Barrick

Gold

Corp.,

144A,

9%,

10/13/22

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

Canada

3,225,000

69,564,481

f

Citigroup

Global

Markets

Holdings,

Inc.

into

Freeport-McMoRan,

Inc.,

144A,

12%,

10/26/22

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

United

States

6,337,000

248,646,422

f

Morgan

Stanley

Finance

II

Ltd.

into

Rio

Tinto

Ltd.,

144A,

10%,

6/07/22

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

Australia

2,972,000

249,614,040

f

Royal

Bank

of

Canada

into

Barrick

Gold

Corp.,

144A,

10%,

4/08/22

Canada

8,910,000

214,048,395

1,034,133,480

Oil,

Gas

&

Consumable

Fuels

0.7%

f

Credit

Suisse

AG

into

Chevron

Corp.,

144A,

10%,

6/07/22

.......

United

States

2,540,000

293,979,021

f

Mizuho

Markets

Cayman

LP

into

Exxon

Mobil

Corp.,

144A,

10%,

2/21/23

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

United

States

3,200,000

255,769,086

549,748,107

Pharmaceuticals

0.7%

f

J.P.

Morgan

Structured

Products

BV

into

Pfizer,

Inc.,

144A,

9.5%,

2/13/23

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

United

States

4,700,000

255,184,581

f

Royal

Bank

of

Canada

into

Merck

&

Co.,

Inc.,

144A,

8.5%,

10/17/22

United

States

2,976,000

248,410,232

503,594,813

Road

&

Rail

0.4%

f

Merrill

Lynch

International

&

Co.

CV

into

Union

Pacific

Corp.,

144A,

8%,

9/21/22

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

United

States

1,082,000

282,884,263

Semiconductors

&

Semiconductor

Equipment

3.4%

f

BNP

Paribas

Issuance

BV

into

Broadcom,

Inc.,

144A,

10%,

8/08/22

United

States

575,000

294,036,815

f

Citigroup

Global

Markets

Holdings,

Inc.

into

Intel

Corp.,

144A,

10%,

4/06/22

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

United

States

3,857,000

205,725,526

f

Citigroup

Global

Markets

Holdings,

Inc.

into

Texas

Instruments,

Inc.,

144A,

8%,

6/21/22

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

United

States

1,328,000

244,074,944

f

Goldman

Sachs

International

Bank

into

Intel

Corp.,

144A,

10%,

4/04/23

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

United

States

3,315,000

158,077,900

f

Goldman

Sachs

International

Bank

into

Texas

Instruments,

Inc.,

144A,

8.5%,

12/14/22

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

United

States

1,200,000

223,648,449

f

Merrill

Lynch

International

&

Co.

CV

into

Analog

Devices,

Inc.,

144A,

9%,

4/04/23

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

United

States

1,551,000

251,976,860

f

Merrill

Lynch

International

&

Co.

CV

into

Broadcom,

Inc.,

144A,

9.5%,

10/13/22

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

United

States

550,000

297,877,696

f

Mizuho

Markets

Cayman

LP

into

Microchip

Technology,

Inc.,

144A,

9%,

10/11/22

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

United

States

1,273,500

189,830,408

f

Morgan

Stanley

Finance

II

Ltd.

into

Microchip

Technology,

Inc.,

144A,

10%,

9/12/23

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

United

States

2,045,000

153,269,639

f

National

Bank

of

Canada

into

Broadcom,

Inc.,

144A,

10%,

5/02/22

United

States

578,000

309,546,018

f

Royal

Bank

of

Canada

into

Intel

Corp.,

144A,

9.5%,

12/22/22

....

United

States

4,525,000

227,996,557

2,556,060,812

Software

0.5%

f

Goldman

Sachs

International

Bank

into

salesforce.com,

Inc.,

144A,

8%,

2/08/23

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

United

States

820,000

177,254,272

f

Mizuho

Markets

Cayman

LP

into

Workday,

Inc.,

144A,

9.5%,

6/07/22

United

States

921,000

219,306,034

396,560,306

Total

Equity-Linked

Securities

(Cost

$13,425,517,963)

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

13,422,511,379

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

77

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Convertible

Preferred

Stocks

2.8%

Capital

Markets

0.1%

d

KKR

&

Co.,

Inc.,

6%,

C

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

United

States

1,350,000

$

100,318,500

Electric

Utilities

1.8%

d

American

Electric

Power

Co.,

Inc.,

6.125%

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

United

States

3,600,000

201,132,000

NextEra

Energy,

Inc.,

5.279%

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

United

States

7,500,000

391,125,000

d

NextEra

Energy,

Inc.,

6.219%

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

United

States

7,500,000

394,050,000

PG&E

Corp.,

5.5%

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

United

States

500,000

56,220,000

Southern

Co.

(The),

6.75%,

2019

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

United

States

6,300,000

344,043,000

1,386,570,000

Machinery

0.0%

†

RBC

Bearings,

Inc.,

5%,

A

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

United

States

200,000

19,944,000

Multi-Utilities

0.8%

Dominion

Energy,

Inc.,

7.25%,

A

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

United

States

3,050,000

309,727,500

DTE

Energy

Co.,

6.25%

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

United

States

3,250,000

173,192,500

NiSource,

Inc.,

7.75%

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

United

States

1,167,000

138,849,660

621,769,660

Thrifts

&

Mortgage

Finance

0.1%

FNMA,

5.375%

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

United

States

4,250

32,937,500

b

Total

Convertible

Preferred

Stocks

(Cost

$2,233,319,009)

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

2,161,539,660

Preferred

Stocks

0.0%

†

Thrifts

&

Mortgage

Finance

0.0%

†

FHLMC,

8.375%,

Z

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

United

States

6,000,000

18,600,000

d

FNMA,

8.25%,

S

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

United

States

4,000,000

12,880,000

31,480,000

Total

Preferred

Stocks

(Cost

$238,139,001)

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

31,480,000

Principal

Amount

*

Convertible

Bonds

0.4%

Airlines

0.1%

f

JetBlue

Airways

Corp.

,

Senior

Note

,

144A,

0.5

%

,

4/01/26

.......

United

States

52,000,000

48,642,796

Health

Care

Equipment

&

Supplies

0.1%

Haemonetics

Corp.

,

Senior

Note

,

Zero

Cpn.,

3/01/26

...........

United

States

44,559,000

37,551,610

Hotels,

Restaurants

&

Leisure

0.0%

†

DraftKings,

Inc.

,

Senior

Note

,

Zero

Cpn.,

3/15/28

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

United

States

48,358,000

34,987,013

Interactive

Media

&

Services

0.1%

Twitter,

Inc.

,

Senior

Note

,

Zero

Cpn.,

3/15/26

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

United

States

50,000,000

42,225,000

Leisure

Products

0.0%

†

Peloton

Interactive,

Inc.

,

Senior

Note

,

Zero

Cpn.,

2/15/26

.......

United

States

38,000,000

31,587,500

Media

0.1%

DISH

Network

Corp.

,

Senior

Note

,

2.375

%

,

3/15/24

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

United

States

85,000,000

79,793,750

Real

Estate

Management

&

Development

0.0%

†

Redfin

Corp.

,

Senior

Note

,

Zero

Cpn.,

10/15/25

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

United

States

22,050,000

16,358,343

Total

Convertible

Bonds

(Cost

$298,281,367)

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

291,146,012

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

30.3%

Aerospace

&

Defense

0.3%

Boeing

Co.

(The)

,

Senior

Bond

,

3.625

%

,

2/01/31

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

United

States

20,000,000

$

19,501,162

f

Bombardier,

Inc.

,

Senior

Bond,

144A,

7.5%,

3/15/25

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

Canada

33,400,000

33,610,921

Senior

Note,

144A,

7.5%,

12/01/24

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

Canada

13,600,000

14,065,120

Raytheon

Technologies

Corp.

,

Senior

Note

,

3.125

%

,

5/04/27

....

United

States

40,000,000

40,183,473

TransDigm,

Inc.

,

Senior

Note,

6.375%,

6/15/26

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

United

States

21,000,000

21,216,300

f

Senior

Secured

Note,

144A,

6.25%,

3/15/26

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

United

States

130,000,000

133,623,100

262,200,076

Airlines

0.5%

f

American

Airlines

Group,

Inc.

,

Senior

Note

,

144A,

5

%

,

6/01/22

...

United

States

109,471,000

109,596,345

f

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note,

144A,

5.5%,

4/20/26

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

United

States

132,000,000

133,175,460

Senior

Secured

Note,

144A,

5.75%,

4/20/29

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

United

States

50,000,000

49,881,250

f

United

Airlines,

Inc.

,

Senior

Secured

Note,

144A,

4.375%,

4/15/26

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

United

States

19,212,000

18,923,820

Senior

Secured

Note,

144A,

4.625%,

4/15/29

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

United

States

66,259,000

63,093,476

374,670,351

Auto

Components

0.5%

American

Axle

&

Manufacturing,

Inc.

,

Senior

Note

,

5

%

,

10/01/29

..

United

States

30,000,000

28,181,100

Dana,

Inc.

,

Senior

Note

,

4.25

%

,

9/01/30

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

United

States

25,000,000

22,912,500

f

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

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

United

States

95,000,000

82,718,400

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Bond,

5%,

5/31/26

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

United

States

30,000,000

29,827,200

Senior

Bond,

4.875%,

3/15/27

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

United

States

15,000,000

14,590,500

Senior

Bond,

5.25%,

4/30/31

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

United

States

45,000,000

42,187,500

f

Senior

Bond,

144A,

5.25%,

7/15/31

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

United

States

40,000,000

37,038,800

f

Senior

Note,

144A,

5%,

7/15/29

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

United

States

100,000,000

93,274,500

Tenneco,

Inc.

,

d

Senior

Bond,

5%,

7/15/26

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

United

States

38,500,000

37,928,467

f

Senior

Secured

Note,

144A,

5.125%,

4/15/29

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

United

States

6,817,000

6,784,415

395,443,382

Automobiles

0.5%

Ford

Motor

Co.

,

Senior

Bond,

3.25%,

2/12/32

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

United

States

30,000,000

26,844,300

Senior

Note,

9%,

4/22/25

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

United

States

50,000,000

57,312,500

Senior

Note

,

4.346%,

12/08/26

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

United

States

120,000,000

120,861,000

General

Motors

Co.

,

Senior

Bond

,

5.15

%

,

4/01/38

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

United

States

140,000,000

142,637,358

347,655,158

Banks

2.2%

Bank

of

America

Corp.

,

g

AA,

Junior

Sub.

Bond,

6.1%

to

3/17/25,

FRN

thereafter,

Perpetual

United

States

70,000,000

73,062,500

g

X,

Junior

Sub.

Bond,

6.25%

to

9/05/24,

FRN

thereafter,

Perpetual

United

States

55,000,000

56,991,003

Senior

Bond,

3.419%

to

12/20/27,

FRN

thereafter,

12/20/28

...

United

States

155,000,000

153,549,233

Senior

Note,

3.004%

to

12/20/22,

FRN

thereafter,

12/20/23

....

United

States

40,000,000

40,116,128

Barclays

plc

,

Senior

Note,

3.932%

to

5/07/24,

FRN

thereafter,

5/07/25

......

United

Kingdom

50,000,000

50,432,465

Senior

Note

,

3.65%,

3/16/25

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

United

Kingdom

50,000,000

50,236,283

Senior

Note

,

4.375%,

1/12/26

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

United

Kingdom

125,000,000

127,731,014

Citigroup,

Inc.

,

g

Junior

Sub.

Bond,

5.95%

to

1/30/23,

FRN

thereafter,

Perpetual

.

United

States

135,000,000

136,768,500

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

79

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

Citigroup,

Inc.,

(continued)

g

D,

Junior

Sub.

Bond,

5.35%

to

5/15/23,

FRN

thereafter,

Perpetual

United

States

100,000,000

$

100,250,000

g

M,

Junior

Sub.

Bond,

6.3%

to

5/15/24,

FRN

thereafter,

Perpetual

United

States

115,000,000

115,891,250

VAR,

Senior

Note,

3.07%

to

2/24/27,

FRN

thereafter,

2/24/28

..

United

States

20,000,000

19,501,320

Sub.

Bond,

4.125%,

7/25/28

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

United

States

130,000,000

132,226,969

g

JPMorgan

Chase

&

Co.

,

h

I,

Junior

Sub.

Bond,

FRN,

3.769%,

(3-month

USD

LIBOR

+

3.47%),

Perpetual

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

United

States

115,959,000

115,959,841

Q,

Junior

Sub.

Bond,

5.15%

to

5/01/23,

FRN

thereafter,

Perpetual

United

States

60,700,000

61,079,375

R,

Junior

Sub.

Bond,

6%

to

8/01/23,

FRN

thereafter,

Perpetual

.

United

States

55,000,000

55,825,000

S,

Junior

Sub.

Bond,

6.75%

to

2/01/24,

FRN

thereafter,

Perpetual

United

States

65,000,000

67,872,025

h

V,

Junior

Sub.

Bond,

FRN,

3.534%,

(3-month

USD

LIBOR

+

3.32%),

Perpetual

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

United

States

108,100,000

108,100,000

X,

Junior

Sub.

Bond,

6.1%

to

10/01/24,

FRN

thereafter,

Perpetual

United

States

70,000,000

71,793,750

Truist

Financial

Corp.

,

Senior

Note

,

1.887%

to

1/07/28,

FRN

thereafter

,

6/07/29

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

United

States

20,000,000

18,199,270

Wells

Fargo

&

Co.

,

g

S,

Junior

Sub.

Bond,

5.9%

to

6/15/24,

FRN

thereafter,

Perpetual

United

States

70,000,000

70,700,000

Senior

Note,

3.196%

to

6/17/26,

FRN

thereafter,

6/17/27

......

United

States

20,000,000

19,755,529

1,646,041,455

Beverages

0.0%

†

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

4

%

,

4/13/28

Belgium

25,000,000

25,951,007

Biotechnology

0.2%

AbbVie,

Inc.

,

Senior

Note,

3.8%,

3/15/25

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

United

States

100,000,000

101,957,528

Senior

Note,

3.2%,

11/21/29

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

United

States

20,000,000

19,783,606

Senior

Note

,

3.2%,

5/14/26

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

United

States

25,000,000

25,099,227

146,840,361

Capital

Markets

0.2%

f

Coinbase

Global,

Inc.

,

Senior

Bond,

144A,

3.625%,

10/01/31

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

United

States

60,000,000

51,266,700

Senior

Note,

144A,

3.375%,

10/01/28

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

United

States

60,000,000

53,082,000

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond

,

2.6

%

,

2/07/30

...

United

States

20,000,000

18,575,869

Morgan

Stanley

,

Senior

Bond

,

2.699%

to

1/22/30,

FRN

thereafter

,

1/22/31

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

United

States

20,000,000

18,790,960

141,715,529

Chemicals

0.6%

f

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

6.5

%

,

5/15/26

Switzerland

115,000,000

117,508,725

f

International

Flavors

&

Fragrances,

Inc.

,

Senior

Bond

,

144A,

2.3

%

,

11/01/30

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

United

States

13,900,000

12,430,051

f

Olin

Corp.

,

Senior

Note

,

144A,

9.5

%

,

6/01/25

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

United

States

40,000,000

46,115,001

f

PMHC

II,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/30

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

United

States

22,000,000

19,388,380

f

Rain

CII

Carbon

LLC

/

CII

Carbon

Corp.

,

Secured

Note

,

144A,

7.25

%

,

4/01/25

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

United

States

21,591,000

21,086,526

f

SCIH

Salt

Holdings,

Inc.

,

Senior

Note,

144A,

6.625%,

5/01/29

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

United

States

125,000,000

112,461,250

Senior

Secured

Note,

144A,

4.875%,

5/01/28

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

United

States

145,000,000

136,863,325

465,853,258

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Commercial

Services

&

Supplies

0.4%

f

ADT

Security

Corp.

(The)

,

Senior

Secured

Note

,

144A,

4.125

%

,

8/01/29

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

United

States

30,000,000

$

27,901,500

f

APX

Group,

Inc.

,

Senior

Note,

144A,

5.75%,

7/15/29

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

United

States

150,000,000

137,156,250

Senior

Secured

Note,

144A,

6.75%,

2/15/27

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

United

States

5,000,000

5,120,100

f

Aramark

Services,

Inc.

,

Senior

Bond

,

144A,

5

%

,

2/01/28

........

United

States

27,000,000

26,238,330

f

GFL

Environmental,

Inc.

,

Senior

Note

,

144A,

4.75

%

,

6/15/29

.....

Canada

25,000,000

23,812,000

f

Madison

IAQ

LLC

,

Senior

Secured

Note

,

144A,

4.125

%

,

6/30/28

..

United

States

25,000,000

23,072,500

f

Prime

Security

Services

Borrower

LLC

/

Prime

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

3.375

%

,

8/31/27

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

United

States

61,589,000

56,427,534

299,728,214

Communications

Equipment

0.5%

f

CommScope

Technologies

LLC

,

Senior

Bond,

144A,

6%,

6/15/25

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

United

States

180,993,285

171,634,122

Senior

Note

,

144A,

5%,

3/15/27

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

United

States

45,000,000

39,179,700

f

CommScope,

Inc.

,

Senior

Note,

144A,

8.25%,

3/01/27

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

United

States

79,000,000

76,918,745

Senior

Note,

144A,

7.125%,

7/01/28

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

United

States

70,000,000

63,315,000

Senior

Secured

Note,

144A,

6%,

3/01/26

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

United

States

40,000,000

40,512,000

391,559,567

Consumer

Finance

0.9%

Capital

One

Financial

Corp.

,

Sub.

Note,

4.2%,

10/29/25

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

United

States

113,000,000

115,713,885

Sub.

Note,

3.75%,

7/28/26

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

United

States

100,200,000

100,839,475

Ford

Motor

Credit

Co.

LLC

,

Senior

Note,

5.125%,

6/16/25

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

United

States

60,000,000

61,273,200

Senior

Note,

4.95%,

5/28/27

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

United

States

50,000,000

50,902,500

Senior

Note

,

4.134%,

8/04/25

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

United

States

149,650,000

149,664,965

Senior

Note

,

5.113%,

5/03/29

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

United

States

100,000,000

100,770,000

General

Motors

Financial

Co.,

Inc.

,

Senior

Note,

4.15%,

6/19/23

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

United

States

75,000,000

76,136,078

Senior

Note,

2.4%,

4/10/28

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

United

States

20,000,000

18,139,920

OneMain

Finance

Corp.

,

Senior

Note

,

4

%

,

9/15/30

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

United

States

38,000,000

33,587,820

707,027,843

Containers

&

Packaging

1.0%

f

ARD

Finance

SA

,

Senior

Secured

Note

,

144A,

6.5

%

,

6/30/27

....

Luxembourg

19,000,000

17,407,610

f

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note,

144A,

5.25%,

8/15/27

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

United

States

110,000,000

101,805,550

Senior

Secured

Note,

144A,

5.25%,

4/30/25

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

United

States

9,669,000

9,672,674

f

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note,

144A,

7.25%,

4/15/25

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

United

States

340,000,000

337,382,000

Senior

Secured

Note,

144A,

5.5%,

4/15/24

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

United

States

218,500,000

217,929,169

f

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

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

United

States

55,000,000

51,161,000

735,358,003

Diversified

Financial

Services

0.4%

f

MPH

Acquisition

Holdings

LLC

,

Senior

Note,

144A,

5.75%,

11/01/28

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

United

States

270,000,000

244,293,300

Senior

Secured

Note,

144A,

5.5%,

9/01/28

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

United

States

101,000,000

97,029,690

341,322,990

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

81

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Diversified

Telecommunication

Services

0.4%

f

Altice

France

SA

,

Senior

Secured

Note,

144A,

5.125%,

7/15/29

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

France

50,000,000

$

44,880,000

Senior

Secured

Note,

144A,

5.5%,

10/15/29

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

France

25,000,000

22,466,000

AT&T,

Inc.

,

Senior

Bond

,

4.125

%

,

2/17/26

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

United

States

75,000,000

78,033,156

f

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond,

144A,

5.5%,

5/01/26

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

United

States

20,002,000

20,317,432

Senior

Bond,

144A,

5.125%,

5/01/27

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

United

States

72,000,000

72,201,600

f

Iliad

Holding

SASU

,

Senior

Secured

Note

,

144A,

6.5

%

,

10/15/26

..

France

40,000,000

40,160,400

278,058,588

Electric

Utilities

0.2%

Pacific

Gas

and

Electric

Co.

,

Senior

Note

,

3.15

%

,

1/01/26

.......

United

States

13,700,000

13,208,417

PG&E

Corp.

,

Senior

Secured

Note

,

5

%

,

7/01/28

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

United

States

33,139,000

32,068,610

f

Vistra

Operations

Co.

LLC

,

Senior

Note,

144A,

5.5%,

9/01/26

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

United

States

35,000,000

35,229,250

Senior

Note,

144A,

5%,

7/31/27

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

United

States

25,000,000

24,637,375

Senior

Note,

144A,

4.375%,

5/01/29

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

United

States

90,000,000

85,166,100

190,309,752

Electrical

Equipment

0.0%

†

f

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

17,668,000

16,145,018

Energy

Equipment

&

Services

0.6%

f

Nabors

Industries

Ltd.

,

Senior

Note

,

144A,

7.25

%

,

1/15/26

......

United

States

16,000,000

16,026,720

f

Weatherford

International

Ltd.

,

Senior

Note,

144A,

11%,

12/01/24

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

United

States

70,371,000

72,926,171

Senior

Note,

144A,

8.625%,

4/30/30

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

United

States

250,000,000

254,128,750

Senior

Secured

Note,

144A,

6.5%,

9/15/28

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

United

States

80,000,000

82,800,000

425,881,641

Entertainment

0.6%

f

Magallanes,

Inc.

,

Senior

Bond,

144A,

4.279%,

3/15/32

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

United

States

60,000,000

60,341,256

Senior

Note,

144A,

3.755%,

3/15/27

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

United

States

45,000,000

44,993,153

Netflix,

Inc.

,

Senior

Bond,

4.375%,

11/15/26

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

United

States

100,000,000

104,147,000

Senior

Bond,

4.875%,

4/15/28

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

United

States

69,300,000

72,785,790

Senior

Bond,

5.875%,

11/15/28

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

United

States

50,000,000

55,240,000

f

ROBLOX

Corp.

,

Senior

Note

,

144A,

3.875

%

,

5/01/30

..........

United

States

107,000,000

100,218,340

437,725,539

Equity

Real

Estate

Investment

Trusts

(REITs)

0.3%

American

Tower

Corp.

,

Senior

Bond,

3.375%,

10/15/26

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

United

States

30,000,000

29,645,709

Senior

Note,

4.05%,

3/15/32

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

United

States

30,000,000

30,107,157

f

Iron

Mountain,

Inc.

,

Senior

Note

,

144A,

4.875

%

,

9/15/27

........

United

States

80,750,000

79,980,856

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

5.25

%

,

8/01/26

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

United

States

10,000,000

10,246,850

Service

Properties

Trust

,

Senior

Bond

,

4.5

%

,

6/15/23

..........

United

States

53,768,000

53,224,943

203,205,515

Food

Products

0.2%

f

Lamb

Weston

Holdings,

Inc.

,

Senior

Note

,

144A,

4.125

%

,

1/31/30

.

United

States

14,500,000

13,564,750

f

Post

Holdings,

Inc.

,

Senior

Bond,

144A,

5.625%,

1/15/28

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

United

States

59,800,000

58,794,762

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Food

Products

(continued)

f

Lamb

Weston

Holdings,

Inc.,

Senior

Note,

144A,

4.125%,

1/31/30

f

Post

Holdings,

Inc.,

(continued)

Senior

Bond,

144A,

4.5%,

9/15/31

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

United

States

55,400,000

$

49,166,946

121,526,458

Health

Care

Equipment

&

Supplies

0.5%

f

Avantor

Funding,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

11/01/29

.....

United

States

15,000,000

14,119,950

f

Mozart

Debt

Merger

Sub,

Inc.

,

Senior

Note,

144A,

5.25%,

10/01/29

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

United

States

233,000,000

216,911,350

Senior

Secured

Note,

144A,

3.875%,

4/01/29

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

United

States

187,500,000

173,676,562

404,707,862

Health

Care

Providers

&

Services

6.6%

f

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

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

United

States

775,000,000

762,507,000

Secured

Note,

144A,

6.125%,

4/01/30

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

United

States

589,000,000

549,224,830

Senior

Note,

144A,

6.875%,

4/01/28

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

United

States

550,000,000

499,950,000

Senior

Secured

Bond,

144A,

4.75%,

2/15/31

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

United

States

20,000,000

18,927,800

Senior

Secured

Note,

144A,

8%,

3/15/26

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

United

States

335,000,000

349,265,975

Senior

Secured

Note,

144A,

5.625%,

3/15/27

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

United

States

250,000,000

254,927,500

Senior

Secured

Note,

144A,

8%,

12/15/27

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

United

States

380,000,000

403,636,000

Senior

Secured

Note,

144A,

6%,

1/15/29

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

United

States

250,000,000

253,050,000

Senior

Secured

Note,

144A,

5.25%,

5/15/30

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

United

States

115,000,000

110,543,750

CVS

Health

Corp.

,

Senior

Bond,

4.3%,

3/25/28

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

United

States

125,000,000

130,975,940

Senior

Bond,

5.05%,

3/25/48

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

United

States

40,000,000

45,418,531

f

DaVita,

Inc.

,

Senior

Bond,

144A,

3.75%,

2/15/31

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

United

States

125,000,000

109,528,125

Senior

Note,

144A,

4.625%,

6/01/30

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

United

States

195,000,000

182,364,000

HCA,

Inc.

,

Senior

Bond,

5.875%,

5/01/23

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

United

States

90,000,000

93,139,650

Senior

Bond,

5.625%,

9/01/28

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

United

States

80,000,000

86,618,800

Senior

Secured

Note

,

5%,

3/15/24

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

United

States

114,800,000

119,055,502

Tenet

Healthcare

Corp.

,

f

Secured

Note,

144A,

6.25%,

2/01/27

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

United

States

35,000,000

35,969,500

Senior

Bond,

6.875%,

11/15/31

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

United

States

55,258,000

59,114,456

Senior

Note,

6.75%,

6/15/23

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

United

States

599,200,000

624,797,824

f

Senior

Note,

144A,

6.125%,

10/01/28

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

United

States

256,155,000

260,600,570

f

Senior

Secured

Note,

144A,

4.875%,

1/01/26

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

United

States

5,000,000

5,049,800

f

Senior

Secured

Note,

144A,

4.25%,

6/01/29

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

United

States

11,000,000

10,560,660

f

Senior

Secured

Note,

144A,

4.375%,

1/15/30

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

United

States

16,000,000

15,379,440

4,980,605,653

Health

Care

Technology

0.2%

f,i

Multiplan

Corp.

,

144A,

PIK,

6

%

,

10/15/27

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

United

States

185,000,000

147,907,500

Hotels,

Restaurants

&

Leisure

1.3%

f

Boyd

Gaming

Corp.

,

Senior

Bond

,

144A,

4.75

%

,

6/15/31

........

United

States

25,000,000

24,135,875

f

Caesars

Entertainment,

Inc.

,

Senior

Note,

144A,

8.125%,

7/01/27

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

United

States

35,000,000

37,548,700

Senior

Note,

144A,

4.625%,

10/15/29

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

United

States

85,000,000

79,581,250

Senior

Secured

Note,

144A,

6.25%,

7/01/25

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

United

States

47,000,000

48,584,840

f

Everi

Holdings,

Inc.

,

Senior

Note

,

144A,

5

%

,

7/15/29

...........

United

States

20,000,000

18,971,500

f

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co.,

Inc.

,

Senior

Note,

144A,

6.75%,

1/15/30

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

United

States

105,000,000

96,729,675

Senior

Secured

Note,

144A,

4.625%,

1/15/29

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

United

States

40,000,000

37,980,800

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

83

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Hotels,

Restaurants

&

Leisure

(continued)

f

Everi

Holdings,

Inc.,

Senior

Note,

144A,

5%,

7/15/29

f

Penn

National

Gaming,

Inc.

,

Senior

Note,

144A,

5.625%,

1/15/27

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

United

States

20,000,000

$

19,857,300

Senior

Note,

144A,

4.125%,

7/01/29

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

United

States

65,000,000

58,259,500

f

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond,

144A,

5.5%,

3/01/25

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

United

States

242,000,000

242,338,800

Senior

Note

,

144A,

4.25%,

5/30/23

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

United

States

123,000,000

122,860,395

Senior

Note

,

144A,

5.25%,

5/15/27

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

United

States

168,222,000

163,081,136

f

Wynn

Resorts

Finance

LLC

/

Wynn

Resorts

Capital

Corp.

,

Senior

Bond

,

144A,

5.125

%

,

10/01/29

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

United

States

25,000,000

23,572,500

j

Yum!

Brands,

Inc.

,

Senior

Bond

,

5.375

%

,

4/01/32

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

United

States

37,500,000

37,640,625

1,011,142,896

Household

Durables

0.0%

†

f

Shea

Homes

LP

/

Shea

Homes

Funding

Corp.

,

Senior

Note,

144A,

4.75%,

2/15/28

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

United

States

25,000,000

23,570,875

Senior

Note,

144A,

4.75%,

4/01/29

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

United

States

12,963,000

12,146,331

35,717,206

Household

Products

0.1%

f

Energizer

Holdings,

Inc.

,

Senior

Note,

144A,

6.5%,

12/31/27

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

United

States

20,000,000

19,840,200

Senior

Note,

144A,

4.75%,

6/15/28

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

United

States

20,000,000

18,204,600

Senior

Note,

144A,

4.375%,

3/31/29

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

United

States

20,000,000

17,532,000

55,576,800

Independent

Power

and

Renewable

Electricity

Producers

0.2%

f

Calpine

Corp.

,

Senior

Note,

144A,

5.125%,

3/15/28

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

United

States

56,500,000

53,924,448

Senior

Secured

Bond,

144A,

5.25%,

6/01/26

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

United

States

4,946,000

4,977,209

f,g

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

7%

to

12/15/26,

FRN

thereafter

,

Perpetual

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

United

States

100,000,000

97,530,500

156,432,157

Insurance

0.1%

Prudential

Financial,

Inc.

,

Junior

Sub.

Bond

,

5.7%

to

9/15/28,

FRN

thereafter

,

9/15/48

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

United

States

65,000,000

66,555,451

Interactive

Media

&

Services

0.0%

†

f

ZipRecruiter,

Inc.

,

Senior

Note

,

144A,

5

%

,

1/15/30

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

United

States

42,000,000

41,061,720

Internet

&

Direct

Marketing

Retail

0.1%

f

Match

Group

Holdings

II

LLC

,

Senior

Bond,

144A,

4.125%,

8/01/30

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

United

States

45,000,000

42,260,625

Senior

Note,

144A,

3.625%,

10/01/31

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

United

States

33,730,000

30,222,080

72,482,705

IT

Services

0.0%

†

Twilio,

Inc.

,

Senior

Note

,

3.625

%

,

3/15/29

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

United

States

40,000,000

37,753,400

Machinery

0.1%

f

Roller

Bearing

Co.

of

America,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

10/15/29

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

United

States

35,000,000

32,681,250

f

TK

Elevator

U.S.

Newco,

Inc.

,

Senior

Secured

Note

,

144A,

5.25

%

,

7/15/27

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

Germany

43,000,000

42,579,890

75,261,140

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Media

2.6%

f

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

4/15/28

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

United

States

65,000,000

$

65,413,725

Senior

Note,

144A,

7.5%,

6/01/29

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

United

States

100,000,000

99,903,000

CSC

Holdings

LLC

,

Senior

Bond,

5.25%,

6/01/24

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

United

States

4,526,000

4,539,578

f

Senior

Bond,

144A,

5.5%,

4/15/27

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

United

States

227,000,000

225,425,755

Senior

Note,

5.875%,

9/15/22

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

United

States

30,255,000

30,530,472

f

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.

,

Secured

Note

,

144A,

5.375

%

,

8/15/26

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

United

States

152,000,000

59,088,480

f

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

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

United

States

74,500,000

73,388,088

DISH

DBS

Corp.

,

Senior

Note,

5.875%,

7/15/22

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

United

States

383,500,000

385,893,040

Senior

Note,

5%,

3/15/23

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

United

States

300,000,000

301,446,000

Senior

Note,

5.875%,

11/15/24

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

United

States

180,000,000

179,795,700

Senior

Note,

7.75%,

7/01/26

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

United

States

70,000,000

69,632,150

Senior

Note,

7.375%,

7/01/28

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

United

States

35,000,000

33,201,875

f

Senior

Secured

Note,

144A,

5.25%,

12/01/26

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

United

States

75,000,000

71,578,125

f

Stagwell

Global

LLC

,

Senior

Note

,

144A,

5.625

%

,

8/15/29

.......

United

States

45,000,000

42,511,500

f

Univision

Communications,

Inc.

,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

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

United

States

217,220,000

217,690,281

Senior

Secured

Note,

144A,

9.5%,

5/01/25

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

United

States

55,000,000

57,825,625

Senior

Secured

Note,

144A,

6.625%,

6/01/27

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

United

States

30,000,000

31,459,950

1,949,323,344

Metals

&

Mining

0.7%

ArcelorMittal

SA

,

Senior

Bond

,

4.25

%

,

7/16/29

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

Luxembourg

20,000,000

20,335,445

f

Cleveland-Cliffs,

Inc.

,

Senior

Bond,

144A,

4.875%,

3/01/31

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

United

States

30,000,000

29,726,700

Senior

Secured

Note,

144A,

6.75%,

3/15/26

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

United

States

50,000,000

52,579,500

f

First

Quantum

Minerals

Ltd.

,

Senior

Note,

144A,

7.25%,

4/01/23

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

Zambia

12,400,000

12,394,172

Senior

Note,

144A,

6.5%,

3/01/24

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

Zambia

25,629,000

25,828,650

Senior

Note,

144A,

7.5%,

4/01/25

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

Zambia

77,598,000

78,858,191

f

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Bond,

144A,

4.375%,

4/01/31

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

Australia

125,000,000

118,445,000

Senior

Note,

144A,

5.125%,

5/15/24

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

Australia

60,540,000

61,800,746

Freeport-McMoRan,

Inc.

,

Senior

Bond,

5.25%,

9/01/29

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

United

States

25,000,000

26,233,000

Senior

Bond,

4.625%,

8/01/30

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

United

States

20,000,000

20,473,000

Senior

Note,

3.875%,

3/15/23

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

United

States

62,636,000

63,397,967

510,072,371

Oil,

Gas

&

Consumable

Fuels

1.1%

f

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note,

144A,

11%,

4/15/25

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

United

States

270,000,000

280,449,000

Senior

Note,

144A,

8.125%,

1/15/27

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

United

States

95,000,000

88,461,150

Senior

Secured

Note,

144A,

9.25%,

7/15/24

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

United

States

111,402,000

119,731,527

f

CITGO

Petroleum

Corp.

,

Senior

Secured

Note

,

144A,

7

%

,

6/15/25

United

States

23,324,000

23,495,665

Civitas

Resources,

Inc.

,

Senior

Note

,

7.5

%

,

4/30/26

...........

United

States

32,713,617

32,729,647

Occidental

Petroleum

Corp.

,

Senior

Bond,

6.125%,

1/01/31

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

United

States

30,000,000

33,796,650

Senior

Note,

8%,

7/15/25

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

United

States

50,000,000

56,205,000

Senior

Note,

5.5%,

12/01/25

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

United

States

30,000,000

31,617,000

Senior

Note,

6.375%,

9/01/28

..........................

United

States

60,000,000

67,645,800

Senior

Note

,

6.625%,

9/01/30

..........................

United

States

40,000,000

45,950,000

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

85

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

Civitas

Resources,

Inc.,

Senior

Note,

7.5%,

4/30/26

PBF

Holding

Co.

LLC

/

PBF

Finance

Corp.

,

Senior

Note,

6%,

2/15/28

.............................

United

States

37,000,000

$

29,804,055

f

Senior

Secured

Note,

144A,

9.25%,

5/15/25

...............

United

States

48,430,000

49,948,765

859,834,259

Personal

Products

0.0%

†

f

BellRing

Brands,

Inc.

,

Senior

Note

,

144A,

7

%

,

3/15/30

.........

United

States

30,000,000

30,675,000

Pharmaceuticals

3.5%

f

Bausch

Health

Americas,

Inc.

,

Senior

Note,

144A,

9.25%,

4/01/26

......................

United

States

285,335,000

292,534,002

Senior

Note,

144A,

8.5%,

1/31/27

.......................

United

States

630,810,000

629,737,623

f

Bausch

Health

Cos.,

Inc.

,

Senior

Bond,

144A,

6.125%,

4/15/25

.....................

United

States

211,251,000

213,231,478

Senior

Note,

144A,

9%,

12/15/25

.......................

United

States

183,000,000

189,789,300

Senior

Note,

144A,

7%,

1/15/28

........................

United

States

40,000,000

35,875,000

Senior

Note,

144A,

5%,

1/30/28

........................

United

States

180,000,000

148,553,100

Senior

Note,

144A,

5%,

2/15/29

........................

United

States

57,000,000

44,473,110

Senior

Note,

144A,

6.25%,

2/15/29

......................

United

States

81,000,000

66,550,005

Senior

Secured

Note,

144A,

5.5%,

11/01/25

...............

United

States

134,000,000

132,985,620

Senior

Secured

Note,

144A,

6.125%,

2/01/27

..............

United

States

130,000,000

130,980,850

Senior

Secured

Note,

144A,

5.75%,

8/15/27

...............

United

States

20,000,000

19,744,000

Senior

Secured

Note,

144A,

4.875%,

6/01/28

..............

United

States

110,000,000

105,474,050

f

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

4.25

%

,

12/15/25

...

Germany

65,000,000

66,167,836

f

Endo

Dac

/

Endo

Finance

LLC

/

Endo

Finco,

Inc.

,

Secured

Note,

144A,

9.5%,

7/31/27

......................

United

States

135,712,000

119,222,992

Senior

Note,

144A,

6%,

6/30/28

........................

United

States

150,739,000

85,732,806

Senior

Secured

Note,

144A,

5.875%,

10/15/24

.............

United

States

47,500,000

44,826,225

f

Endo

Luxembourg

Finance

Co.

I

SARL

/

Endo

US,

Inc.

,

Senior

Secured

Note

,

144A,

6.125

%

,

4/01/29

....................

United

States

63,355,000

57,887,781

f

Par

Pharmaceutical,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

4/01/27

United

States

143,344,000

134,000,838

Royalty

Pharma

plc

,

Senior

Note

,

2.2

%

,

9/02/30

..............

United

States

20,000,000

17,516,116

Utah

Acquisition

Sub,

Inc.

,

Senior

Note

,

3.95

%

,

6/15/26

.........

United

States

110,000,000

109,313,414

2,644,596,146

Road

&

Rail

0.1%

f

Ashtead

Capital,

Inc.

,

Senior

Note,

144A,

4%,

5/01/28

........................

United

Kingdom

15,000,000

14,811,566

Senior

Note

,

144A,

4.375%,

8/15/27

.....................

United

Kingdom

34,500,000

34,999,042

49,810,608

Semiconductors

&

Semiconductor

Equipment

0.2%

f

Broadcom,

Inc.

,

Senior

Bond,

144A,

4%,

4/15/29

........................

United

States

25,000,000

24,987,750

Senior

Bond,

144A,

2.45%,

2/15/31

......................

United

States

20,000,000

17,872,027

Senior

Bond,

144A,

4.15%,

4/15/32

......................

United

States

35,000,000

34,923,350

Microchip

Technology,

Inc.

,

Senior

Secured

Note

,

4.333

%

,

6/01/23

United

States

69,000,000

70,125,545

147,908,672

Software

0.2%

f

Minerva

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/30

.....

United

States

50,000,000

48,569,000

f

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

75,000,000

68,209,125

Workday,

Inc.

,

Senior

Bond

,

3.8

%

,

4/01/32

..................

United

States

35,000,000

34,976,642

151,754,767

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Specialty

Retail

0.2%

Bath

&

Body

Works,

Inc.

,

Senior

Bond

,

6.875

%

,

11/01/35

.......

United

States

50,000,000

$

51,595,250

f

Gap,

Inc.

(The)

,

Senior

Bond,

144A,

3.875%,

10/01/31

....................

United

States

37,000,000

32,302,850

Senior

Note,

144A,

3.625%,

10/01/29

....................

United

States

15,000,000

13,394,625

f

Michaels

Cos.,

Inc.

(The)

,

Senior

Note,

144A,

7.875%,

5/01/29

.....................

United

States

10,000,000

8,574,950

Senior

Secured

Note,

144A,

5.25%,

5/01/28

...............

United

States

50,000,000

45,969,000

151,836,675

Technology

Hardware,

Storage

&

Peripherals

0.0%

†

Seagate

HDD

Cayman

,

Senior

Bond

,

3.375

%

,

7/15/31

.........

United

States

7,000,000

6,238,190

Tobacco

0.3%

BAT

Capital

Corp.

,

Senior

Note,

3.222%,

8/15/24

..........................

United

Kingdom

78,500,000

78,530,499

Senior

Note,

3.557%,

8/15/27

..........................

United

Kingdom

190,000,000

185,243,449

263,773,948

Trading

Companies

&

Distributors

0.4%

United

Rentals

North

America,

Inc.

,

Secured

Note,

3.875%,

11/15/27

........................

United

States

20,000,000

19,837,200

Senior

Bond,

4.875%,

1/15/28

..........................

United

States

110,000,000

111,859,000

Senior

Bond,

4%,

7/15/30

.............................

United

States

61,623,000

59,045,002

Senior

Bond,

3.875%,

2/15/31

..........................

United

States

57,035,000

53,845,603

f

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

6/15/25

...

United

States

30,000,000

31,242,300

275,829,105

Wireless

Telecommunication

Services

1.3%

Sprint

Communications,

Inc.

,

Senior

Note

,

6

%

,

11/15/22

........

United

States

347,700,000

355,954,398

Sprint

Corp.

,

Senior

Note,

7.875%,

9/15/23

..........................

United

States

187,350,000

199,292,626

Senior

Note,

7.125%,

6/15/24

..........................

United

States

190,650,000

204,719,970

Senior

Note,

7.625%,

3/01/26

..........................

United

States

86,300,000

97,502,603

f

Sprint

Spectrum

Co.

LLC

/

Sprint

Spectrum

Co.

II

LLC

/

Sprint

Spectrum

Co.

III

LLC

,

Senior

Secured

Note

,

144A,

5.152

%

,

3/20/28

...........................................

United

States

90,000,000

94,855,449

T-Mobile

USA,

Inc.

,

Senior

Secured

Note

,

3.875

%

,

4/15/30

......

United

States

20,000,000

20,105,244

972,430,290

Total

Corporate

Bonds

(Cost

$22,947,585,218)

..................................

23,053,507,570

h,k

Senior

Floating

Rate

Interests

0.2%

Commercial

Services

&

Supplies

0.0%

†

APX

Group,

Inc.

,

Initial

Term

Loan

,

4.005

%

,

(

1-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

2.5%

),

7/10/28

...............

United

States

19,900,000

19,658,414

Diversified

Financial

Services

0.1%

MPH

Acquisition

Holdings

LLC

,

Initial

Term

Loan

,

4.758

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

9/01/28

..........................

United

States

33,915,000

33,031,175

Media

0.1%

Diamond

Sports

Group

LLC

,

First

Lien,

CME

Term

Loan

,

9

%

,

(

1-month

SOFR

+

8

%

),

5/25/26

.........................

United

States

22,057,094

22,435,483

DIRECTV

Financing

LLC

,

Closing

Date

Term

Loan

,

5.75

%

,

(

1-month

USD

LIBOR

+

5

%

),

8/02/27

............................

United

States

19,100,000

19,103,724

41,539,207

a

a

a

a

a

a

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

87

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

h,k

Senior

Floating

Rate

Interests

(continued)

Pharmaceuticals

0.0%

†

Jazz

Pharmaceuticals

plc

,

Initial

Dollar

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

5/05/28

...........................

United

States

19,850,000

$

19,801,665

Specialty

Retail

0.0%

†

Belk,

Inc.

,

First

Lien,

First-Out

Term

Loan,

8.5%,

(3-month

USD

LIBOR

+

7.5%),

7/31/25

......................................

United

States

4,913,316

4,890,789

First

Lien,

Second-Out

Term

Loan,

13%,

(3-month

USD

LIBOR

+

5%),

7/31/25

.......................................

United

States

30,840,062

20,135,939

25,026,728

a

a

a

a

a

a

Total

Senior

Floating

Rate

Interests

(Cost

$134,278,421)

.........................

139,057,189

U.S.

Government

and

Agency

Securities

8.9%

U.S.

Treasury

Notes

,

0.25%,

3/15/24

.....................................

United

States

750,000,000

720,615,233

2.25%,

3/31/24

.....................................

United

States

750,000,000

749,018,557

0.25%,

6/15/24

.....................................

United

States

500,000,000

476,972,655

1.75%,

3/15/25

.....................................

United

States

2,250,000,000

2,202,539,062

0.5%,

3/31/25

......................................

United

States

750,000,000

706,699,215

0.75%,

5/31/26

.....................................

United

States

750,000,000

697,690,433

0.875%,

6/30/26

.....................................

United

States

500,000,000

467,080,080

1.875%,

2/28/29

.....................................

United

States

250,000,000

241,386,720

1.875%,

2/15/32

.....................................

United

States

500,000,000

480,234,375

Total

U.S.

Government

and

Agency

Securities

(Cost

$6,932,020,930)

..............

6,742,236,330

Asset-Backed

Securities

0.1%

Airlines

0.1%

United

Airlines

Pass-Through

Trust

,

2020-1

,

A

,

5.875

%

,

10/15/27

.

.

United

States

48,128,896

49,898,124

Total

Asset-Backed

Securities

(Cost

$48,128,896)

...............................

49,898,124

Mortgage-Backed

Securities

0.0%

†

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

0.0%

†

FNMA,

30

Year,

4%,

8/01/49

.............................

United

States

32,347,316

33,387,522

Total

Mortgage-Backed

Securities

(Cost

$34,267,938)

............................

33,387,522

Shares

a

Escrows

and

Litigation

Trusts

0.0%

†

f

Chesapeake

Energy

Corp.,

Escrow

Account,

144A

............

United

States

25,000,000

25,849,000

Total

Escrows

and

Litigation

Trusts

(Cost

$25,000,000)

..........................

25,849,000

Total

Long

Term

Investments

(Cost

$70,098,122,144)

............................

74,175,234,481

a

Short

Term

Investments

2.7%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

2.6%

l,m

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

2,012,325,542

2,012,325,542

Total

Money

Market

Funds

(Cost

$2,012,325,542)

................................

2,012,325,542

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

n

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.1%

a

a

a

a

a

Money

Market

Funds

0.1%

l,m

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

90,336,000

$

90,336,000

Principal

Amount

*

Repurchase

Agreements

0.0%

†

o

Joint

Repurchase

Agreement,

BNP

Paribas

SA,

0.28%,

4/01/22

(Maturity

Value

$22,783,627)

Collateralized

by

U.S.

Treasury

Bond,

6%,

2/15/26;

U.S.

Treasury

Bonds,

Strips,

8/15/24

-

2/15/26;

U.S.

Treasury

Notes,

0.125%

-

2.875%,

10/31/22

-

1/31/27;

and

U.S.

Treasury

Notes,

Index

Linked,

0.125%

-

0.625%,

1/15/24

-

7/15/26

(valued

at

$23,239,121)

.......................................

22,783,450

22,783,450

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$113,119,450)

..........................................................

113,119,450

Total

Short

Term

Investments

(Cost

$2,125,444,992

)

.............................

2,125,444,992

a

Total

Investments

(Cost

$72,223,567,136)

100.3%

...............................

$76,300,679,473

Options

Written

(0.1)%

.......................................................

(68,486,000)

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(262,205,324)

Net

Assets

100.0%

...........................................................

$75,969,988,149

Number

of

Contracts

Notional

Amount

#

p

Options

Written

(0.1)%

Calls

-

Exchange-Traded

Equity

Options

3M

Co.,

June

Strike

Price

$160.00,

Expires

6/17/22

............

5,000

74,440,000

(1,050,000)

3M

Co.,

June

Strike

Price

$165.00,

Expires

6/17/22

............

5,000

74,440,000

(600,000)

AbbVie,

Inc.,

April

Strike

Price

$150.00,

Expires

4/14/22

........

5,000

81,055,000

(6,450,000)

AbbVie,

Inc.,

May

Strike

Price

$160.00,

Expires

5/20/22

........

5,000

81,055,000

(2,825,000)

AbbVie,

Inc.,

June

Strike

Price

$170.00,

Expires

6/17/22

........

5,000

81,055,000

(1,380,000)

Amgen,

Inc.,

April

Strike

Price

$240.00,

Expires

4/14/22

........

5,000

120,910,000

(2,600,000)

Amgen,

Inc.,

June

Strike

Price

$240.00,

Expires

6/17/22

........

5,000

120,910,000

(4,900,000)

Amgen,

Inc.,

June

Strike

Price

$250.00,

Expires

6/17/22

........

5,000

120,910,000

(2,550,000)

Chevron

Corp.,

June

Strike

Price

$200.00,

Expires

6/17/22

......

10,000

162,830,000

(740,000)

Constellation

Energy

Corp.,

May

Strike

Price

$60.00,

Expires

5/20/22

...........................................

10,000

56,250,000

(1,600,000)

Exxon

Mobil

Corp.,

May

Strike

Price

$110.00,

Expires

5/20/22

....

10,000

82,590,000

(100,000)

Honeywell

International,

Inc.,

April

Strike

Price

$200.00,

Expires

4/14/22

...........................................

5,000

97,290,000

(525,000)

Intel

Corp.,

May

Strike

Price

$52.50,

Expires

5/20/22

...........

20,000

99,120,000

(2,360,000)

Intel

Corp.,

May

Strike

Price

$55.00,

Expires

5/20/22

...........

20,000

99,120,000

(1,180,000)

International

Business

Machines

Corp.,

May

Strike

Price

$135.00,

Expires

5/20/22

.....................................

10,000

130,020,000

(2,440,000)

International

Business

Machines

Corp.,

June

Strike

Price

$140.00,

Expires

6/17/22

.....................................

10,000

130,020,000

(1,500,000)

Johnson

&

Johnson,

May

Strike

Price

$175.00,

Expires

5/20/22

...

5,000

88,615,000

(3,000,000)

Johnson

&

Johnson,

May

Strike

Price

$185.00,

Expires

5/20/22

...

5,000

88,615,000

(685,000)

Merck

&

Co.,

Inc.,

April

Strike

Price

$80.00,

Expires

4/14/22

.....

10,000

82,050,000

(2,770,000)

Merck

&

Co.,

Inc.,

May

Strike

Price

$82.50,

Expires

5/20/22

.....

10,000

82,050,000

(2,320,000)

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

89

See

Abbreviations

on

page

142

.

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

p

Options

Written

(continued)

Calls

-

Exchange-Traded

(continued)

Equity

Options

(continued)

Morgan

Stanley,

May

Strike

Price

$110.00,

Expires

5/20/22

......

10,000

87,400,000

$

(80,000)

PepsiCo,

Inc.,

April

Strike

Price

$185.00,

Expires

4/14/22

.......

10,000

167,380,000

(100,000)

Pfizer,

Inc.,

May

Strike

Price

$57.50,

Expires

5/20/22

...........

10,000

51,770,000

(500,000)

Philip

Morris

International,

Inc.,

April

Strike

Price

$100.00,

Expires

4/14/22

...........................................

10,000

93,940,000

(90,000)

Texas

Instruments,

Inc.,

May

Strike

Price

$200.00,

Expires

5/20/22

5,000

91,740,000

(965,000)

Texas

Instruments,

Inc.,

June

Strike

Price

$210.00,

Expires

6/17/22

5,000

91,740,000

(715,000)

Walmart,

Inc.,

April

Strike

Price

$145.00,

Expires

4/14/22

.......

10,000

148,920,000

(4,950,000)

Walt

Disney

Co.

(The),

April

Strike

Price

$160.00,

Expires

4/14/22

.

5,500

75,438,000

(33,000)

(49,008,000)

Puts

-

Exchange-Traded

Equity

Options

Alphabet,

Inc.,

May

Strike

Price

$2,200.00,

Expires

5/20/22

......

1,000

278,135,000

(763,000)

Analog

Devices,

Inc.,

April

Strike

Price

$150.00,

Expires

4/14/22

..

5,000

82,590,000

(330,000)

Goldman

Sachs

Group,

Inc.

(The),

April

Strike

Price

$285.00,

Expires

4/14/22

.....................................

5,000

165,050,000

(300,000)

Goldman

Sachs

Group,

Inc.

(The),

May

Strike

Price

$300.00,

Expires

5/20/22

...........................................

5,000

165,050,000

(2,445,000)

Home

Depot,

Inc.

(The),

May

Strike

Price

$285.00,

Expires

5/20/22

10,000

299,330,000

(7,150,000)

McDonald's

Corp.,

May

Strike

Price

$210.00,

Expires

5/20/22

....

5,000

123,640,000

(365,000)

Morgan

Stanley,

April

Strike

Price

$80.00,

Expires

4/14/22

.......

10,000

87,400,000

(390,000)

Morgan

Stanley,

April

Strike

Price

$85.00,

Expires

4/14/22

.......

10,000

87,400,000

(1,450,000)

NVIDIA

Corp.,

April

Strike

Price

$190.00,

Expires

4/14/22

.......

5,000

136,430,000

(55,000)

salesforce.com,

Inc.,

May

Strike

Price

$170.00,

Expires

5/20/22

..

10,000

212,320,000

(1,200,000)

Texas

Instruments,

Inc.,

April

Strike

Price

$155.00,

Expires

4/14/22

10,000

183,480,000

(100,000)

Texas

Instruments,

Inc.,

June

Strike

Price

$160.00,

Expires

6/17/22

10,000

183,480,000

(2,900,000)

Twilio,

Inc.,

April

Strike

Price

$125.00,

Expires

4/14/22

.........

5,000

82,405,000

(120,000)

Workday,

Inc.,

May

Strike

Price

$200.00,

Expires

5/20/22

.......

10,000

239,460,000

(1,910,000)

(19,478,000)

Total

Options

Written

(Premiums

received

$74,928,235)

..........................

$

(68,486,000)

#

Notional

amount

is

the

number

of

units

specified

in

the

contract,

and

can

include

currency

units,

bushels,

shares,

pounds,

barrels

or

other

units.

Currency

units

are

stated

in

U.S.

dollars

unless

otherwise

indicated.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

A

portion

or

all

of

the

security

is

held

in

connection

with

written

option

contracts

open

at

period

end.

b

Non-income

producing.

c

See

Note

12

regarding

holdings

of

5%

voting

securities.

d

A

portion

or

all

of

the

security

is

on

loan

at

March

31,

2022.

See

Note

1(g).

e

See

Note

1(f)

regarding

equity-linked

securities.

f

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

March

31,

2022,

the

aggregate

value

of

these

securities

was

$28,494,394,949,

representing

37.5%

of

net

assets.

g

Perpetual

security

with

no

stated

maturity

date.

h

The

coupon

rate

shown

represents

the

rate

at

period

end.

i

Income

may

be

received

in

additional

securities

and/or

cash.

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

j

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(d).

k

See

Note

1(h)

regarding

senior

floating

rate

interests.

l

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

m

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

n

See

Note

1(g)

regarding

securities

on

loan.

o

See

Note

1(c)

regarding

joint

repurchase

agreement.

p

See

Note

1(e)

regarding

written

options.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

91

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

Year

Ended

September

30,

2018

a

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.................

$5.89

$6.09

$6.07

$5.86

$5.89

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.03

0.05

0.10

0.14

0.01

Net

realized

and

unrealized

gains

(losses)

...........

(0.30)

(0.12)

0.08

0.25

(0.02)

Total

from

investment

operations

....................

(0.27)

(0.07)

0.18

0.39

(0.01)

Less

distributions

from:

Net

investment

income

..........................

(0.07)

(0.13)

(0.16)

(0.18)

(0.02)

Net

asset

value,

end

of

period

......................

$5.55

$5.89

$6.09

$6.07

$5.86

Total

return

d

...................................

(4.70)%

(1.15)%

3.01%

6.70%

(0.23)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

......

0.87%

0.87%

0.89%

0.89%

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

f

......

0.87%

g

0.87%

g

0.88%

0.88%

0.86%

g

Net

investment

income

...........................

1.18%

0.79%

1.58%

2.36%

2.40%

Supplemental

data

Net

assets,

end

of

period

(000’s)

....................

$844,409

$1,020,574

$1,097,545

$336,646

$4,472

Portfolio

turnover

rate

............................

21.54%

89.16%

65.54%

41.34%

44.67%

a

For

the

period

September

10,

2018

(effective

date)

to

September

30,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$5.90

$6.09

$6.07

$5.85

$6.13

$6.35

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.04

0.05

0.10

0.15

0.15

0.13

Net

realized

and

unrealized

gains

(losses)

(0.32)

(0.10)

0.09

0.25

(0.25)

(0.16)

Total

from

investment

operations

........

(0.28)

(0.05)

0.19

0.40

(0.10)

(0.03)

Less

distributions

from:

Net

investment

income

..............

(0.07)

(0.14)

(0.17)

(0.18)

(0.18)

(0.19)

Net

asset

value,

end

of

period

..........

$5.55

$5.90

$6.09

$6.07

$5.85

$6.13

Total

return

c

.......................

(4.81)%

(0.89)%

3.09%

6.94%

(1.60)%

(0.45)%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.76%

0.77%

0.78%

0.79%

0.76%

0.79%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.76%

f

0.76%

0.77%

0.78%

0.76%

f

0.79%

f

Net

investment

income

...............

1.28%

0.90%

1.69%

2.46%

2.50%

2.17%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,863,833

$2,104,978

$2,661,888

$2,885,194

$3,099,373

$3,581,769

Portfolio

turnover

rate

................

21.54%

89.16%

65.54%

41.34%

44.67%

86.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

93

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$5.85

$6.04

$6.03

$5.81

$6.08

$6.30

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.02

0.02

0.07

0.12

0.12

0.10

Net

realized

and

unrealized

gains

(losses)

(0.31)

(0.10)

0.08

0.25

(0.24)

(0.16)

Total

from

investment

operations

........

(0.29)

(0.08)

0.15

0.37

(0.12)

(0.06)

Less

distributions

from:

Net

investment

income

..............

(0.05)

(0.11)

(0.14)

(0.15)

(0.15)

(0.16)

Net

asset

value,

end

of

period

..........

$5.51

$5.85

$6.04

$6.03

$5.81

$6.08

Total

return

c

.......................

(4.93)%

(1.41)%

2.43%

6.45%

(1.94)%

(0.96)%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.27%

1.27%

1.29%

1.29%

1.26%

1.29%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

1.27%

f

1.27%

f

1.28%

1.28%

1.26%

f

1.29%

f

Net

investment

income

...............

0.78%

0.39%

1.18%

1.96%

2.00%

1.67%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$154,961

$196,643

$354,483

$389,021

$571,525

$797,394

Portfolio

turnover

rate

................

21.54%

89.16%

65.54%

41.34%

44.67%

86.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$5.89

$6.09

$6.07

$5.85

$6.12

$6.34

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.03

0.03

0.08

0.13

0.13

0.11

Net

realized

and

unrealized

gains

(losses)

(0.31)

(0.11)

0.08

0.25

(0.24)

(0.16)

Total

from

investment

operations

........

(0.28)

(0.08)

0.16

0.38

(0.11)

(0.05)

Less

distributions

from:

Net

investment

income

..............

(0.06)

(0.12)

(0.14)

(0.16)

(0.16)

(0.17)

Net

asset

value,

end

of

period

..........

$5.55

$5.89

$6.09

$6.07

$5.85

$6.12

Total

return

c

.......................

(4.82)%

(1.41)%

2.73%

6.58%

(1.78)%

(0.81)%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.12%

1.11%

1.13%

1.14%

1.11%

1.13%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

1.12%

f

1.11%

f

1.12%

1.13%

1.11%

f

1.13%

f

Net

investment

income

...............

0.93%

0.55%

1.34%

2.11%

2.15%

1.83%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$17,131

$19,513

$27,746

$32,906

$31,144

$38,363

Portfolio

turnover

rate

................

21.54%

89.16%

65.54%

41.34%

44.67%

86.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

95

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$5.92

$6.12

$6.10

$5.87

$6.15

$6.37

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.04

0.07

0.12

0.16

0.17

0.15

Net

realized

and

unrealized

gains

(losses)

(0.30)

(0.12)

0.08

0.27

(0.25)

(0.16)

Total

from

investment

operations

........

(0.26)

(0.05)

0.20

0.43

(0.08)

(0.01)

Less

distributions

from:

Net

investment

income

..............

(0.08)

(0.15)

(0.18)

(0.20)

(0.20)

(0.21)

Net

asset

value,

end

of

period

..........

$5.58

$5.92

$6.12

$6.10

$5.87

$6.15

Total

return

c

.......................

(4.50)%

(0.80)%

3.34%

7.39%

(1.33)%

(0.16)%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.52%

0.53%

0.54%

0.51%

0.49%

0.48%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.51%

0.51%

0.52%

0.50%

0.48%

0.48%

f

Net

investment

income

...............

1.54%

1.15%

1.96%

2.74%

2.78%

2.48%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$247,377

$304,650

$361,791

$573,957

$694,813

$446,174

Portfolio

turnover

rate

................

21.54%

89.16%

65.54%

41.34%

44.67%

86.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$5.92

$6.11

$6.10

$5.87

$6.15

$6.37

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.04

0.06

0.11

0.16

0.16

0.15

Net

realized

and

unrealized

gains

(losses)

(0.32)

(0.10)

0.07

0.26

(0.25)

(0.17)

Total

from

investment

operations

........

(0.28)

(0.04)

0.18

0.42

(0.09)

(0.02)

Less

distributions

from:

Net

investment

income

..............

(0.07)

(0.15)

(0.17)

(0.19)

(0.19)

(0.20)

Net

asset

value,

end

of

period

..........

$5.57

$5.92

$6.11

$6.10

$5.87

$6.15

Total

return

c

.......................

(4.73)%

(0.74)%

3.23%

7.08%

(1.45)%

(0.30)%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.62%

0.62%

0.64%

0.64%

0.61%

0.64%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.62%

f

0.62%

f

0.63%

0.63%

0.61%

f

0.64%

f

Net

investment

income

...............

1.42%

1.04%

1.84%

2.61%

2.65%

2.32%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$552,275

$692,010

$743,012

$946,318

$720,281

$854,640

Portfolio

turnover

rate

................

21.54%

89.16%

65.54%

41.34%

44.67%

86.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited),

March

31,

2022

Franklin

U.S.

Government

Securities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

97

a

a

Principal

Amount

a

Value

a

a

a

a

a

U.S.

Government

and

Agency

Securities

0.5%

U.S.

Treasury

Bonds,

4.75%,

2/15/37

....................................

$

14,500,000

$

18,928,164

Total

U.S.

Government

and

Agency

Securities

(Cost

$18,663,786)

.................

18,928,164

Mortgage-Backed

Securities

97.3%

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

97.3%

GNMA

I,

30

Year,

4.5%,

4/15/40

........................................

4,189,211

4,522,440

GNMA

I,

30

Year,

5%,

9/15/40

..........................................

151,509,643

165,842,783

GNMA

I,

30

Year,

5.5%,

2/15/40

........................................

68,435,668

76,442,297

GNMA

I,

30

Year,

6%,

12/15/39

.........................................

62,473,071

70,117,401

GNMA

I,

30

Year,

6.5%,

8/15/37

........................................

17,237,542

18,767,995

GNMA

I,

30

Year,

7%,

9/15/32

..........................................

11,186,738

12,385,775

GNMA

I,

30

Year,

7.5%,

7/15/26

-

8/15/33

.................................

1,071,573

1,166,888

GNMA

I,

30

Year,

8%,

10/15/29

.........................................

1,759

1,941

GNMA

I,

30

Year,

8.5%,

11/15/24

........................................

378

393

GNMA

I,

Single-family,

30

Year,

3.5%,

4/15/43

-

5/15/43

......................

13,828,940

14,172,832

GNMA

I,

Single-family,

30

Year,

4%,

10/15/40

-

8/15/46

.......................

40,326,339

42,408,118

GNMA

I,

Single-family,

30

Year,

4.5%,

2/15/39

-

6/15/41

......................

77,211,148

83,406,368

GNMA

I,

Single-family,

30

Year,

5%,

2/15/35

...............................

22,642

24,431

GNMA

I,

Single-family,

30

Year,

5.5%,

5/15/33

-

4/15/49

......................

929,411

993,228

GNMA

I,

Single-family,

30

Year,

7.25%,

12/15/25

-

1/15/26

.....................

37,901

38,366

GNMA

I,

Single-family,

30

Year,

7.5%,

4/15/22

-

7/15/31

......................

1,278,275

1,320,335

GNMA

I,

Single-family,

30

Year,

8%,

5/15/22

-

9/15/30

........................

461,004

470,271

GNMA

I,

Single-family,

30

Year,

8.5%,

6/15/22

-

5/15/25

......................

16,884

16,968

GNMA

I,

Single-family,

30

Year,

9%,

5/15/22

-

1/15/23

........................

1,502

1,505

GNMA

I,

Single-family,

30

Year,

9.5%,

8/15/22

..............................

591

592

GNMA

I,

Single-family,

30

Year,

10%,

2/15/25

..............................

3,360

3,368

GNMA

II,

30

Year,

4.5%,

5/20/34

-

6/20/41

.................................

3,493,047

3,719,608

GNMA

II,

30

Year,

6%,

7/20/39

.........................................

27,860,061

31,083,449

GNMA

II,

30

Year,

6%,

3/20/34

-

9/20/34

..................................

1,135,052

1,180,158

GNMA

II,

30

Year,

6.5%,

9/20/31

-

9/20/32

.................................

1,185,747

1,308,275

GNMA

II,

30

Year,

7%,

7/20/32

.........................................

339,106

377,388

GNMA

II,

30

Year,

7.5%,

10/20/24

.......................................

13,521

13,569

GNMA

II,

30

Year,

8%,

12/20/28

........................................

56,022

59,551

GNMA

II,

Single-family,

30

Year,

2%,

8/20/51

...............................

274,436,894

262,180,730

GNMA

II,

Single-family,

30

Year,

2.5%,

11/20/50

............................

16,194,384

15,711,537

GNMA

II,

Single-family,

30

Year,

2.5%,

7/20/51

.............................

83,681,122

81,297,808

GNMA

II,

Single-family,

30

Year,

2.5%,

8/20/51

.............................

246,632,885

239,608,556

GNMA

II,

Single-family,

30

Year,

2.5%,

9/20/51

.............................

99,110,215

96,287,466

GNMA

II,

Single-family,

30

Year,

2.5%,

10/20/51

............................

95,817,538

93,088,567

GNMA

II,

Single-family,

30

Year,

2.5%,

12/20/51

............................

96,755,327

93,999,648

GNMA

II,

Single-family,

30

Year,

2.5%,

1/20/52

.............................

237,422,915

230,660,895

GNMA

II,

Single-family,

30

Year,

3%,

10/20/44

..............................

22,498,584

22,445,770

GNMA

II,

Single-family,

30

Year,

3%,

12/20/44

..............................

11,426,314

11,399,655

GNMA

II,

Single-family,

30

Year,

3%,

5/20/45

...............................

16,877,433

16,836,078

GNMA

II,

Single-family,

30

Year,

3%,

4/20/46

...............................

22,723,619

22,643,934

GNMA

II,

Single-family,

30

Year,

3%,

9/20/47

...............................

18,407,904

18,336,827

GNMA

II,

Single-family,

30

Year,

3%,

10/20/47

..............................

29,513,057

29,399,058

GNMA

II,

Single-family,

30

Year,

3%,

6/20/50

...............................

13,713,107

13,848,975

GNMA

II,

Single-family,

30

Year,

3%,

7/20/51

...............................

178,282,380

176,775,946

GNMA

II,

Single-family,

30

Year,

3%,

8/20/51

...............................

199,442,096

197,673,449

GNMA

II,

Single-family,

30

Year,

3%,

9/20/51

...............................

32,931,645

32,646,133

GNMA

II,

Single-family,

30

Year,

3%,

10/20/51

..............................

139,992,379

138,750,148

GNMA

II,

Single-family,

30

Year,

3%,

11/20/51

..............................

88,912,961

88,103,601

GNMA

II,

Single-family,

30

Year,

3%,

12/20/51

..............................

127,949,540

126,704,453

GNMA

II,

Single-family,

30

Year,

3%,

2/20/45

-

10/20/50

......................

81,799,858

82,142,229

GNMA

II,

Single-family,

30

Year,

3.5%,

7/20/42

.............................

35,398,771

36,357,580

GNMA

II,

Single-family,

30

Year,

3.5%,

9/20/42

.............................

44,380,915

45,095,382

GNMA

II,

Single-family,

30

Year,

3.5%,

5/20/43

.............................

13,209,700

13,563,518

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

U.S.

Government

Securities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

a

Principal

Amount

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

(continued)

GNMA

II,

Single-family,

30

Year,

3.5%,

6/20/43

.............................

$

15,377,746

$

15,793,981

GNMA

II,

Single-family,

30

Year,

3.5%,

8/20/43

.............................

9,969,590

10,239,468

GNMA

II,

Single-family,

30

Year,

3.5%,

9/20/47

.............................

167,898,260

170,962,994

GNMA

II,

Single-family,

30

Year,

3.5%,

11/20/47

............................

158,584,745

160,921,559

GNMA

II,

Single-family,

30

Year,

3.5%,

11/20/51

............................

26,532,867

26,741,554

GNMA

II,

Single-family,

30

Year,

3.5%,

10/20/40

-

1/20/49

.....................

48,006,726

49,111,047

GNMA

II,

Single-family,

30

Year,

4%,

11/20/40

..............................

11,853,944

12,461,928

GNMA

II,

Single-family,

30

Year,

4%,

9/20/41

...............................

11,775,034

12,379,097

GNMA

II,

Single-family,

30

Year,

4%,

10/20/41

..............................

14,562,123

15,309,880

GNMA

II,

Single-family,

30

Year,

4%,

11/20/41

..............................

13,548,795

14,243,844

GNMA

II,

Single-family,

30

Year,

4%,

5/20/47

...............................

40,709,974

42,115,220

GNMA

II,

Single-family,

30

Year,

4%,

6/20/47

...............................

31,106,641

32,068,290

GNMA

II,

Single-family,

30

Year,

4%,

7/20/47

...............................

20,161,275

20,898,012

GNMA

II,

Single-family,

30

Year,

4%,

5/20/40

-

12/20/49

......................

56,430,548

58,879,814

GNMA

II,

Single-family,

30

Year,

4.5%,

5/20/41

.............................

10,733,867

11,435,169

GNMA

II,

Single-family,

30

Year,

4.5%,

6/20/41

.............................

13,218,744

14,083,007

GNMA

II,

Single-family,

30

Year,

4.5%,

7/20/41

.............................

14,778,186

15,743,759

GNMA

II,

Single-family,

30

Year,

4.5%,

9/20/41

.............................

21,196,097

22,600,902

GNMA

II,

Single-family,

30

Year,

4.5%,

10/20/41

............................

14,996,962

15,989,095

GNMA

II,

Single-family,

30

Year,

4.5%,

5/20/33

-

2/20/44

......................

33,691,785

35,942,757

GNMA

II,

Single-family,

30

Year,

5%,

9/20/33

...............................

9,593,428

10,397,695

GNMA

II,

Single-family,

30

Year,

5%,

7/20/33

-

9/20/41

.......................

31,009,630

33,817,688

GNMA

II,

Single-family,

30

Year,

5.5%,

6/20/34

-

2/20/50

......................

44,380,987

48,758,773

GNMA

II,

Single-family,

30

Year,

6%,

6/20/34

...............................

584,697

631,001

GNMA

II,

Single-family,

30

Year,

6.5%,

6/20/24

-

1/20/39

......................

8,884,076

9,817,764

GNMA

II,

Single-family,

30

Year,

7%,

2/20/28

-

7/20/33

.......................

2,367,656

2,613,124

GNMA

II,

Single-family,

30

Year,

7.5%,

10/20/22

-

4/20/32

.....................

366,832

395,768

GNMA

II,

Single-family,

30

Year,

8%,

12/20/24

-

6/20/30

......................

163,902

177,120

GNMA

II,

Single-family,

30

Year,

8.5%,

1/20/25

-

6/20/25

......................

105

106

GNMA

II,

Single-family,

30

Year,

9.5%,

12/20/24

-

1/20/25

.....................

2,696

2,702

3,579,937,354

Total

Mortgage-Backed

Securities

(Cost

$3,688,183,878)

.........................

3,579,937,354

Total

Long

Term

Investments

(Cost

$3,706,847,664)

.............................

3,598,865,518

a

a

a

a

a

Short

Term

Investments

2.4%

Shares

a

Money

Market

Funds

2.4%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

89,394,141

89,394,141

Total

Money

Market

Funds

(Cost

$89,394,141)

..................................

89,394,141

Total

Short

Term

Investments

(Cost

$89,394,141

)

................................

89,394,141

a

Total

Investments

(Cost

$3,796,241,805)

100.2%

................................

$3,688,259,659

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(8,272,851)

Net

Assets

100.0%

...........................................................

$3,679,986,808

See

Abbreviations

on

page

142

.

a

See

Note

3

(

f

)

regarding

investments

in

affiliated

management

investment

companies.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semianual

Report

99

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

Year

Ended

September

30,

2018

a

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.................

$20.20

$19.76

$22.53

$18.66

$19.16

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.24

0.43

0.51

0.53

0.02

Net

realized

and

unrealized

gains

(losses)

...........

3.48

1.94

(2.43)

4.41

(0.52)

Total

from

investment

operations

....................

3.72

2.37

(1.92)

4.94

(0.50)

Less

distributions

from:

Net

investment

income

..........................

(0.24)

(0.52)

(0.50)

(0.49)

—

Net

realized

gains

.............................

(0.60)

(1.41)

(0.35)

(0.58)

—

Total

distributions

...............................

(0.84)

(1.93)

(0.85)

(1.07)

—

Net

asset

value,

end

of

period

......................

$23.08

$20.20

$19.76

$22.53

$18.66

Total

return

d

...................................

18.99%

12.29%

(8.68)%

27.43%

(2.61)%

Ratios

to

average

net

assets

e

Expenses

f

,g

....................................

0.83%

0.82%

0.83%

0.83%

0.84%

Net

investment

income

...........................

2.30%

2.10%

2.46%

2.51%

2.62%

Supplemental

data

Net

assets,

end

of

period

(000’s)

....................

$1,198,030

$982,201

$742,188

$521,782

$3,536

Portfolio

turnover

rate

............................

2.53%

5.18%

12.19%

7.90%

4.58%

a

For

the

period

September

10,

2018

(effective

date)

to

September

30,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Semianual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.21

$19.77

$22.54

$18.66

$19.18

$17.85

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.25

0.45

0.52

0.53

0.50

0.53

Net

realized

and

unrealized

gains

(losses)

3.48

1.94

(2.41)

4.44

(0.17)

1.30

Total

from

investment

operations

........

3.73

2.39

(1.89)

4.97

0.33

1.83

Less

distributions

from:

Net

investment

income

..............

(0.25)

(0.54)

(0.53)

(0.51)

(0.54)

(0.49)

Net

realized

gains

.................

(0.60)

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

Total

distributions

...................

(0.85)

(1.95)

(0.88)

(1.09)

(0.85)

(0.50)

Net

asset

value,

end

of

period

..........

$23.09

$20.21

$19.77

$22.54

$18.66

$19.18

Total

return

c

.......................

19.04%

12.40%

(8.59)%

27.61%

1.68%

10.38%

Ratios

to

average

net

assets

d

Expenses

e,f

........................

0.73%

0.72%

0.73%

0.73%

0.74%

0.75%

Net

investment

income

...............

2.39%

2.20%

2.50%

2.61%

2.72%

2.86%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,756,878

$3,321,370

$3,388,126

$4,176,487

$3,654,795

$4,182,780

Portfolio

turnover

rate

................

2.53%

5.18%

12.19%

7.90%

4.58%

0.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semianual

Report

101

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.09

$19.65

$22.42

$18.57

$19.09

$17.76

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.20

0.34

0.41

0.42

0.41

0.43

Net

realized

and

unrealized

gains

(losses)

3.46

1.95

(2.41)

4.43

(0.18)

1.30

Total

from

investment

operations

........

3.66

2.29

(2.00)

4.85

0.23

1.73

Less

distributions

from:

Net

investment

income

..............

(0.20)

(0.44)

(0.42)

(0.42)

(0.44)

(0.39)

Net

realized

gains

.................

(0.60)

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

Total

distributions

...................

(0.80)

(1.85)

(0.77)

(1.00)

(0.75)

(0.40)

Net

asset

value,

end

of

period

..........

$22.95

$20.09

$19.65

$22.42

$18.57

$19.09

Total

return

c

.......................

18.76%

11.91%

(9.10)%

26.96%

1.18%

9.88%

Ratios

to

average

net

assets

d

Expenses

e

,f

........................

1.22%

1.22%

1.23%

1.23%

1.24%

1.25%

Net

investment

income

...............

1.88%

1.69%

1.98%

2.11%

2.22%

2.36%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$371,378

$350,553

$537,808

$767,363

$834,070

$981,515

Portfolio

turnover

rate

................

2.53%

5.18%

12.19%

7.90%

4.58%

0.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Semianual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.12

$19.68

$22.45

$18.59

$19.11

$17.78

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.22

0.38

0.44

0.45

0.44

0.46

Net

realized

and

unrealized

gains

(losses)

3.46

1.94

(2.41)

4.44

(0.18)

1.30

Total

from

investment

operations

........

3.68

2.32

(1.97)

4.89

0.26

1.76

Less

distributions

from:

Net

investment

income

..............

(0.22)

(0.47)

(0.45)

(0.45)

(0.47)

(0.42)

Net

realized

gains

.................

(0.60)

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

Total

distributions

...................

(0.82)

(1.88)

(0.80)

(1.03)

(0.78)

(0.43)

Net

asset

value,

end

of

period

..........

$22.98

$20.12

$19.68

$22.45

$18.59

$19.11

Total

return

c

.......................

18.82%

12.06%

(8.95)%

27.17%

1.33%

10.04%

Ratios

to

average

net

assets

d

Expenses

e

,f

........................

1.07%

1.07%

1.08%

1.08%

1.09%

1.10%

Net

investment

income

...............

2.05%

1.85%

2.15%

2.26%

2.37%

2.51%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$98,999

$83,441

$84,488

$103,376

$72,927

$94,465

Portfolio

turnover

rate

................

2.53%

5.18%

12.19%

7.90%

4.58%

0.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semianual

Report

103

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.40

$19.93

$22.73

$18.81

$19.32

$17.97

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.28

0.50

0.58

0.56

0.55

0.58

Net

realized

and

unrealized

gains

(losses)

3.52

1.96

(2.46)

4.50

(0.17)

1.31

Total

from

investment

operations

........

3.80

2.46

(1.88)

5.06

0.38

1.89

Less

distributions

from:

Net

investment

income

..............

(0.28)

(0.58)

(0.57)

(0.56)

(0.58)

(0.53)

Net

realized

gains

.................

(0.60)

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

Total

distributions

...................

(0.88)

(1.99)

(0.92)

(1.14)

(0.89)

(0.54)

Net

asset

value,

end

of

period

..........

$23.32

$20.40

$19.93

$22.73

$18.81

$19.32

Total

return

c

.......................

19.19%

12.71%

(8.44)%

27.89%

1.97%

10.70%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.56%

0.58%

0.56%

0.53%

0.52%

0.48%

Expenses

net

of

waiver

and

payments

by

affiliates

e

..........................

0.50%

0.50%

0.50%

0.50%

0.48%

0.48%

f

Net

investment

income

...............

2.64%

2.42%

2.75%

2.84%

2.98%

3.13%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$204,651

$153,969

$144,079

$150,244

$230,393

$241,455

Portfolio

turnover

rate

................

2.53%

5.18%

12.19%

7.90%

4.58%

0.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Financial

Highlights

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Semianual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

a

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.40

$19.93

$22.73

$18.81

$19.32

$17.97

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.27

0.48

0.56

0.56

0.54

0.57

Net

realized

and

unrealized

gains

(losses)

3.52

1.97

(2.46)

4.48

(0.18)

1.30

Total

from

investment

operations

........

3.79

2.45

(1.90)

5.04

0.36

1.87

Less

distributions

from:

Net

investment

income

..............

(0.27)

(0.57)

(0.55)

(0.54)

(0.56)

(0.51)

Net

realized

gains

.................

(0.60)

(1.41)

(0.35)

(0.58)

(0.31)

(0.01)

Total

distributions

...................

(0.87)

(1.98)

(0.90)

(1.12)

(0.87)

(0.52)

Net

asset

value,

end

of

period

..........

$23.32

$20.40

$19.93

$22.73

$18.81

$19.32

Total

return

c

.......................

19.14%

12.62%

(8.51)%

27.78%

1.82%

10.64%

Ratios

to

average

net

assets

d

Expenses

e

,f

........................

0.58%

0.57%

0.58%

0.58%

0.59%

0.60%

Net

investment

income

...............

2.54%

2.35%

2.66%

2.76%

2.87%

3.01%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,409,658

$1,200,859

$1,179,002

$1,262,883

$927,845

$963,228

Portfolio

turnover

rate

................

2.53%

5.18%

12.19%

7.90%

4.58%

0.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited),

March

31,

2022

Franklin

Utilities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

105

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

98.9%

Construction

&

Engineering

1.0%

MDU

Resources

Group,

Inc.

.............................

United

States

2,700,000

$

71,955,000

Diversified

Telecommunication

Services

1.1%

a

TELUS

Corp.

........................................

Canada

3,000,000

78,368,326

Electric

Utilities

57.2%

Alliant

Energy

Corp.

...................................

United

States

3,750,000

234,300,000

American

Electric

Power

Co.,

Inc.

.........................

United

States

2,750,000

274,367,500

Constellation

Energy

Corp.

..............................

United

States

1,679,999

94,499,944

Duke

Energy

Corp.

....................................

United

States

2,700,000

301,482,000

Edison

International

...................................

United

States

4,300,000

301,430,000

Emera

,

Inc.

..........................................

Canada

1,800,000

89,218,956

Entergy

Corp.

........................................

United

States

2,200,000

256,850,000

Evergy

,

Inc.

..........................................

United

States

3,421,604

233,832,418

Eversource

Energy

....................................

United

States

2,200,000

194,018,000

Exelon

Corp.

.........................................

United

States

5,650,000

269,109,500

FirstEnergy

Corp.

.....................................

United

States

1,800,000

82,548,000

NextEra

Energy,

Inc.

...................................

United

States

9,686,286

820,525,288

OGE

Energy

Corp.

....................................

United

States

1,600,000

65,248,000

Origin

Energy

Ltd.

.....................................

Australia

7,000,000

32,585,242

a

PG&E

Corp.

.........................................

United

States

7,000,000

83,580,000

Pinnacle

West

Capital

Corp.

.............................

United

States

1,250,000

97,625,000

PPL

Corp.

...........................................

United

States

5,200,000

148,512,000

Southern

Co.

(The)

....................................

United

States

4,100,000

297,291,000

Xcel

Energy,

Inc.

......................................

United

States

2,100,000

151,557,000

4,028,579,848

Gas

Utilities

1.8%

Southwest

Gas

Holdings,

Inc.

............................

United

States

700,000

54,803,000

Spire,

Inc.

...........................................

United

States

1,000,000

71,760,000

126,563,000

Independent

Power

and

Renewable

Electricity

Producers

1.3%

Clearway

Energy,

Inc.,

C

................................

United

States

200,000

7,302,000

Vistra

Corp.

..........................................

United

States

3,500,000

81,375,000

88,677,000

Multi-Utilities

32.8%

Ameren

Corp.

........................................

United

States

1,668,250

156,415,120

Black

Hills

Corp.

......................................

United

States

784,393

60,413,949

CenterPoint

Energy,

Inc.

................................

United

States

6,250,000

191,500,000

CMS

Energy

Corp.

....................................

United

States

4,800,000

335,712,000

Consolidated

Edison,

Inc.

...............................

United

States

1,000,000

94,680,000

Dominion

Energy,

Inc.

..................................

United

States

3,800,000

322,886,000

DTE

Energy

Co.

......................................

United

States

1,500,000

198,315,000

E.ON

SE

............................................

Germany

9,000,000

104,577,530

National

Grid

plc

......................................

United

Kingdom

5,000,000

76,846,942

NiSource,

Inc.

........................................

United

States

5,600,000

178,080,000

NorthWestern

Corp.

...................................

United

States

1,255,416

75,940,113

Public

Service

Enterprise

Group,

Inc.

......................

United

States

1,900,000

133,000,000

Sempra

Energy

.......................................

United

States

1,800,000

302,616,000

WEC

Energy

Group,

Inc.

................................

United

States

800,000

79,848,000

2,310,830,654

Oil,

Gas

&

Consumable

Fuels

2.2%

Cheniere

Energy,

Inc.

..................................

United

States

700,000

97,055,000

DT

Midstream,

Inc.

....................................

United

States

750,000

40,695,000

Franklin

Custodian

Funds

Schedule

of

Investments

(unaudited)

Franklin

Utilities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

Williams

Cos.,

Inc.

(The)

................................

United

States

400,000

$

13,364,000

151,114,000

Water

Utilities

1.5%

Essential

Utilities,

Inc.

..................................

United

States

1,500,000

76,695,000

United

Utilities

Group

plc

................................

United

Kingdom

2,000,000

29,453,276

106,148,276

Total

Common

Stocks

(Cost

$3,033,921,276)

....................................

6,962,236,104

Short

Term

Investments

0.5%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

0.5%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

36,866,244

36,866,244

Total

Money

Market

Funds

(Cost

$36,866,244)

..................................

36,866,244

Total

Short

Term

Investments

(Cost

$36,866,244

)

................................

36,866,244

a

Total

Investments

(Cost

$3,070,787,520)

99.4%

..................................

$6,999,102,348

Other

Assets,

less

Liabilities

0.6%

.............................................

40,491,810

Net

Assets

100.0%

...........................................................

$7,039,594,158

See

Abbreviations

on

page

142

.

a

Non-income

producing.

b

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

March

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

107

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$13,422,520,717

$83,061,365

$5,994,118,699

Cost

-

Non-controlled

affiliates

(Note

3

f

and

12

)

.................

346,580,695

2,071,646

96,777,192

Cost

-

Unaffiliated

repurchase

agreements

....................

8,235,498

—

4,736,329

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$38,192,771,

$—

and

$27,153,879,

respectively)

..........................

$23,567,947,996

$98,539,322

$19,639,673,942

Value

-

Non-controlled

affiliates

(Note

3

f

and

12

)

................

346,580,695

2,071,646

96,777,192

Value

-

Unaffiliated

repurchase

agreements

....................

8,235,498

—

4,736,329

Cash

..................................................

—

—

1,004,545

Receivables:

Investment

securities

sold

.................................

3,352,985

—

55,679,810

Capital

shares

sold

......................................

46,251,310

108,373

8,648,340

Dividends

.............................................

3,275,829

3,250

7,038,762

Affiliates

..............................................

—

36,049

—

Other

assets

............................................

9,193

—

—

Total

assets

........................................

23,975,653,506

100,758,640

19,813,558,920

Liabilities:

Payables:

Capital

shares

redeemed

.................................

44,634,950

3,607,289

95,630,805

Management

fees

.......................................

8,253,671

—

7,055,391

Distribution

fees

........................................

3,038,930

20,575

3,124,475

Transfer

agent

fees

......................................

1,152,272

—

2,799,551

Trustees'

fees

and

expenses

...............................

—

330

—

Payable

upon

return

of

securities

loaned

(Note

1

g

)

................

41,175,498

—

23,680,330

Accrued

expenses

and

other

liabilities

.........................

387,267

28,407

746,391

Total

liabilities

.......................................

98,642,588

3,656,60

1

133,036,943

Net

assets,

at

value

...............................

$23,877,010,918

$97,102,039

$19,680,521,977

Net

assets

consist

of:

Paid-in

capital

...........................................

$14,446,484,393

$89,704,205

$4,873,356,501

Total

distributable

earnings

(losses)

...........................

9,430,526,525

7,397,834

14,807,165,476

Net

assets,

at

value

...............................

$23,877,010,918

$97,102,039

$19,680,521,977

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

March

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Class

A:

Net

assets,

at

value

.....................................

$10,221,960,846

$76,784,451

$12,145,774,874

Shares

outstanding

......................................

79,257,230

2,824,061

89,684,236

Net

asset

value

per

share

a

................................

$128.97

$27.19

$135.43

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%,

94.50%

and

94.50%,

respectively)

..........................

$136.48

$28.77

$143.31

Class

C:

Net

assets,

at

value

.....................................

$1,071,129,730

$6,035,885

$592,494,387

Shares

outstanding

......................................

10,269,189

225,473

4,998,586

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$104.31

$26.77

$118.53

Class

R:

Net

assets,

at

value

.....................................

$263,813,533

$807,144

$340,259,682

Shares

outstanding

......................................

2,126,390

29,795

2,533,024

Net

asset

value

and

maximum

offering

price

per

share

...........

$124.07

$27.09

$134.33

Class

R6:

Net

assets,

at

value

.....................................

$8,703,193,214

$65,029

$2,741,956,937

Shares

outstanding

......................................

64,051,313

2,374

20,128,761

Net

asset

value

and

maximum

offering

price

per

share

...........

$135.88

$27.39

$136.22

Advisor

Class:

Net

assets,

at

value

.....................................

$3,616,913,595

$13,409,530

$3,860,036,097

Shares

outstanding

......................................

26,958,161

490,370

28,314,143

Net

asset

value

and

maximum

offering

price

per

share

...........

$134.17

$27.35

$136.33

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

March

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

109

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$69,839,517,770

$3,706,847,664

$3,033,921,276

Cost

-

Non-controlled

affiliates

(Note

3

f

and

12

)

.................

2,361,265,916

89,394,141

36,866,244

Cost

-

Unaffiliated

repurchase

agreements

....................

22,783,450

—

—

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$106,928,986,

$—

and

$—,

respectively)

.....................

$73,823,434,481

$3,598,865,518

$6,962,236,104

Value

-

Non-controlled

affiliates

(Note

3

f

and

12

)

................

2,454,461,542

89,394,141

36,866,244

Value

-

Unaffiliated

repurchase

agreements

....................

22,783,450

—

—

Cash

..................................................

3,951,192

—

—

Receivables:

Investment

securities

sold

.................................

273,119,068

—

32,611,967

Capital

shares

sold

......................................

67,055,112

6,854,344

20,532,544

Dividends

and

interest

...................................

529,485,069

9,943,917

11,471,715

European

Union

tax

reclaims

(Note

1

i

)

.......................

36,533,623

—

1,012,122

Total

assets

........................................

77,210,823,537

3,705,057,920

7,064,730,696

Liabilities:

Payables:

Investment

securities

purchased

............................

956,579,783

—

13,367,800

Capital

shares

redeemed

.................................

54,764,401

20,636,898

6,794,721

Management

fees

.......................................

23,325,301

1,395,578

2,653,243

Distribution

fees

........................................

12,421,258

511,922

935,668

Transfer

agent

fees

......................................

6,718,003

750,984

820,540

Trustees'

fees

and

expenses

...............................

—

767

—

Options

written,

at

value

(premiums

received

$74,928,235,

$–

and

$–,

respectively)

............................................

68,486,000

—

—

Payable

upon

return

of

securities

loaned

(Note

1

g

)

................

113,119,450

—

—

Accrued

expenses

and

other

liabilities

.........................

5,421,192

1,774,963

564,566

Total

liabilities

.......................................

1,240,835,388

25,071,112

25,136,538

Net

assets,

at

value

...............................

$75,969,988,149

$3,679,986,808

$7,039,594,158

Net

assets

consist

of:

Paid-in

capital

...........................................

$70,376,768,096

$4,518,328,643

$3,033,772,957

Total

distributable

earnings

(losses)

...........................

5,593,220,053

(838,341,835)

4,005,821,201

Net

assets,

at

value

...............................

$75,969,988,149

$3,679,986,808

$7,039,594,158

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

March

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Class

A:

Net

assets,

at

value

.....................................

$18,177,132,414

$844,408,732

$1,198,029,731

Shares

outstanding

......................................

7,213,156,795

152,159,121

51,899,698

Net

asset

value

per

share

a

................................

$2.52

$5.55

$23.08

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%,

96.25%

and

96.25%,

respectively)

..........................

$2.62

$5.77

$23.98

Class

A1:

Net

assets,

at

value

.....................................

$36,252,709,965

$1,863,833,177

$3,756,878,398

Shares

outstanding

......................................

14,350,984,250

335,700,613

162,691,354

Net

asset

value

per

share

a

................................

$2.53

$5.55

$23.09

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%,

96.25%

and

96.25%,

respectively)

..........................

$2.63

$5.77

$23.99

Class

C:

Net

assets,

at

value

.....................................

$7,216,736,791

$154,961,171

$371,377,695

Shares

outstanding

......................................

2,809,105,400

28,126,818

16,184,835

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$2.57

$5.51

$22.95

Class

R:

Net

assets,

at

value

.....................................

$288,744,571

$17,131,151

$98,998,763

Shares

outstanding

......................................

116,887,469

3,086,492

4,307,488

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.47

$5.55

$22.98

Class

R6:

Net

assets,

at

value

.....................................

$1,235,380,832

$247,377,479

$204,651,433

Shares

outstanding

......................................

491,334,329

44,359,795

8,776,844

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.51

$5.58

$23.32

Advisor

Class:

Net

assets,

at

value

.....................................

$12,799,283,576

$552,275,098

$1,409,658,138

Shares

outstanding

......................................

5,113,844,373

99,122,051

60,453,740

Net

asset

value

and

maximum

offering

price

per

share

...........

$2.50

$5.57

$23.32

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

March

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

111

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$258,346,

$1,394

and

$331,501,

respectively)

Unaffiliated

issuers

......................................

$28,769,905

$164,608

$77,395,270

Non-controlled

affiliates

(Note

3

f

and

12

)

......................

12,717

148

5,554

Interest:

Unaffiliated

issuers

......................................

6,223

—

—

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

...................

528,646

—

242,882

Non-controlled

affiliates

(Note

3

f

)

...........................

5,310

—

2,211

Total

investment

income

.................................

29,322,801

164,756

77,645,917

Expenses:

Management

fees

(Note

3

a

)

.................................

54,303,926

392,824

44,510,653

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

14,252,954

102,946

16,082,228

    Class

C

..............................................

6,181,985

31,474

3,244,552

    Class

R

..............................................

734,967

2,469

940,654

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

5,672,477

96,824

6,566,788

    Class

C

..............................................

614,860

7,399

331,231

    Class

R

..............................................

146,293

1,161

192,070

    Class

R6

.............................................

1,065,456

43

395,254

    Advisor

Class

..........................................

2,047,088

26,430

2,124,307

Custodian

fees

(Note

4

)

....................................

174,766

577

66,614

Reports

to

shareholders

fees

................................

692,129

4,164

422,018

Registration

and

filing

fees

..................................

570,424

85,252

178,737

Professional

fees

.........................................

42,060

24,465

58,333

Trustees'

fees

and

expenses

................................

84,385

845

77,028

Other

..................................................

185,592

3,589

204,226

Total

expenses

.......................................

86,769,362

780,462

75,394,693

Expense

reductions

(Note

4

)

.............................

(214)

(3)

(63)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(185,802)

(166,820)

(81,997)

Net

expenses

.......................................

86,583,346

613,639

75,312,633

Net

investment

income

(loss)

..........................

(57,260,545)

(448,883)

2,333,284

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:*

Unaffiliated

issuers

....................................

(500,135,257)

(6,719,195)

1,266,195,222

Foreign

currency

transactions

..............................

(164,195)

5,264

3,565

Net

realized

gain

(loss)

................................

(500,299,452)

(6,713,931)

1,266,198,787

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(4,268,036,081)

(10,078,140)

(1,672,452,808)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

...........................................

5,018

—

1,167

Net

change

in

unrealized

appreciation

(depreciation)

..........

(4,268,031,063)

(10,078,140)

(1,672,451,641)

Net

realized

and

unrealized

gain

(loss)

..........................

(4,768,330,515)

(16,792,071)

(406,252,854)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(4,825,591,060)

$(17,240,954)

$(403,919,570)

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

March

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$12,919,080,

$–

and

$611,626,

respectively)

Unaffiliated

issuers

......................................

$634,904,481

$—

$100,381,110

Non-controlled

affiliates

(Note

3

f

and

12

)

......................

12,131,360

3,480

862

Interest:

Unaffiliated

issuers:

Paydown

gain

(loss)

...................................

(346,235)

(21,199,854)

—

Paid

in

cash

a

.........................................

608,078,307

62,409,795

62,491

Non-controlled

affiliates

(Note

3

f

and

12

)

......................

1,233,576

—

—

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

...................

212,990

—

—

Non-controlled

affiliates

(Note

3

f

)

...........................

1,325

—

—

Other

income

(Note

1

i

)

.....................................

—

—

15,051

Total

investment

income

.................................

1,256,215,804

41,213,421

100,459,514

Expenses:

Management

fees

(Note

3

a

)

.................................

138,816,634

9,045,567

14,770,709

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

21,311,499

1,172,155

1,340,954

    Class

A1

.............................................

27,053,409

1,434,990

2,611,643

    Class

C

..............................................

23,974,528

568,356

1,157,984

    Class

R

..............................................

675,678

45,588

224,635

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

6,959,045

648,102

560,645

    Class

A1

.............................................

14,728,083

1,377,430

1,822,242

    Class

C

..............................................

3,012,482

120,828

186,672

    Class

R

..............................................

110,324

12,601

46,969

    Class

R6

.............................................

223,829

50,595

75,130

    Advisor

Class

..........................................

5,004,208

430,384

664,832

Custodian

fees

(N

ote

4

)

....................................

279,039

14,234

32,128

Reports

to

shareholders

fees

................................

1,654,812

170,188

180,836

Registration

and

filing

fees

..................................

407,569

95,985

78,411

Professional

fees

.........................................

54,916

39,936

29,622

Trustees'

fees

and

expenses

................................

262,226

19,930

23,949

Interest

expense

.........................................

—

—

2,759

Other

..................................................

648,355

310,493

59,131

Total

expenses

.......................................

245,176,636

15,557,362

23,869,251

Expense

reductions

(Note

4

)

.............................

(242,337)

(21,004)

(3)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(1,324,305)

(44,811)

(57,894)

Net

expenses

.......................................

243,609,994

15,491,547

23,811,354

Net

investment

income

..............................

1,012,605,810

25,721,874

76,648,160

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

March

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

113

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

2,386,159,769

(16,806,922)

86,071,826

Non-controlled

affiliates

(Note

3

f

and

12

)

....................

(293,534,915)

—

—

Written

options

.........................................

165,771,414

—

—

Foreign

currency

transactions

..............................

(114,494)

—

15,131

Net

realized

gain

(loss)

................................

2,258,281,774

(16,806,922)

86,086,957

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

1,259,110,851

(198,168,144)

974,729,067

Non-controlled

affiliates

(Note

3

f

and

12

)

....................

108,340,600

—

—

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

...........................................

(1,596,572)

—

(48,171)

Written

options

.........................................

8,513,077

—

—

Net

change

in

unrealized

appreciation

(depreciation)

..........

1,374,367,956

(198,168,144)

974,680,896

Net

realized

and

unrealized

gain

(loss)

..........................

3,632,649,730

(214,975,066)

1,060,767,853

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$4,645,255,540

$(189,253,192)

$1,137,416,013

*Includes

gains

from

a

redemption

in-kind

(Note

14)

$47,765,967

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(57,260,545)

$(110,881,188)

$(448,883)

$(644,039)

Net

realized

gain

(loss)

............

(500,299,452)

373,789,285

(6,713,931)

421,805

Net

change

in

unrealized

appreciation

(depreciation)

.................

(4,268,031,063)

5,609,997,011

(10,078,140)

16,905,656

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(4,825,591,060)

5,872,905,108

(17,240,954)

16,683,422

Distributions

to

shareholders:

Class

A

........................

(172,943,583)

—

(493,434)

(319,730)

Class

C

........................

(23,184,109)

—

(38,188)

(38,815)

Class

R

........................

(4,586,975)

—

(5,897)

(5,388)

Class

R6

.......................

(134,824,197)

—

(415)

(542)

Advisor

Class

...................

(60,590,104)

—

(131,680)

(143,074)

Total

distributions

to

shareholders

.....

(396,128,968)

—

(669,614)

(507,549)

Capital

share

transactions:

(Note

2

)

Class

A

........................

342,526,730

1,166,707,331

9,534,449

43,462,387

Class

C

........................

(14,177,568)

(76,438,621)

1,052,694

883,316

Class

R

........................

10,877,872

22,853,993

1,717

179,679

Class

R6

.......................

726,519,640

2,023,008,052

415

(6,601)

Advisor

Class

...................

80,124,126

546,990,073

(8,213,662)

3,763,971

Total

capital

share

transactions

.......

1,145,870,800

3,683,120,828

2,375,613

48,282,752

Net

increase

(decrease)

in

net

assets

.....................

(4,075,849,228)

9,556,025,936

(15,534,955)

64,458,625

Net

assets:

Beginning

of

period

................

27,952,860,146

18,396,834,210

112,636,994

48,178,369

End

of

period

.....................

$23,877,010,918

$27,952,860,146

$97,102,039

$112,636,994

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

115

Franklin

Growth

Fund

Franklin

Income

Fund

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$2,333,284

$4,643,091

$1,012,60

5,810

$2,291,660,125

Net

realized

gain

(loss)

............

1,266,198,787

2,255,944,532

2,258,281,774

8,277,786,020

Net

change

in

unrealized

appreciation

(depreciation)

.................

(1,672,451,641)

2,537,596,777

1,374,367,956

4,453,738,736

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(403,919,570)

4,798,184,400

4,645,255,540

15,023,184,881

Distributions

to

shareholders:

Class

A

........................

(1,168,961,036)

(914,505,600)

(716,364,311)

(592,401,375)

Class

A1

.......................

—

—

(1,556,210,539)

(1,711,720,100)

Class

C

........................

(66,622,776)

(64,091,884)

(295,785,295)

(403,199,100)

Class

R

........................

(34,890,151)

(32,805,859)

(11,230,028)

(11,176,955)

Class

R6

.......................

(278,038,777)

(241,399,632)

(39,231,491)

(54,960,003)

Advisor

Class

...................

(380,494,855)

(294,899,901)

(543,234,028)

(551,809,902)

Total

distributions

to

shareholders

.....

(1,929,007,595)

(1,547,702,876)

(3,162,055,692)

(3,325,267,435)

Capital

share

transactions:

(Note

2

)

Class

A

........................

647,005,867

(27,036,183)

1,792,131,570

4,037,666,517

Class

A1

.......................

—

—

(174,607,472)

(2,988,069,908)

Class

C

........................

8,358,752

(175,973,220)

(445,983,999)

(3,537,489,972)

Class

R

........................

(13,802,637)

(90,877,145)

26,203,125

(4,876,292)

Class

R6

.......................

(44,808,070)

(384,267,389)

462,160,486

(1,087,687,048)

Advisor

Class

...................

83,844,868

74,268,334

594,962,861

449,167,160

Total

capital

share

transactions

.......

680,598,780

(603,885,603)

2,254,866,571

(3,131,289,543)

Net

increase

(decrease)

in

net

assets

.....................

(1,652,328,385)

2,646,595,921

3,738,066,419

8,566,627,903

Net

assets:

Beginning

of

period

................

21,332,850,362

18,686,254,441

72,231,921,730

63,665,293,827

End

of

period

.....................

$19,680,521,977

$21,332,850,362

$75,969,988,149

$72,231,921,730

Franklin

Custodian

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Six

Months

Ended

March

31,

2022

(unaudited)

Year

Ended

September

30,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$25,721,874

$44,586,688

$76,648,160

$137,021,391

Net

realized

gain

(loss)

............

(16,806,922)

(37,616,745)

86,086,957

264,123,410

Net

change

in

unrealized

appreciation

(depreciation)

.................

(198,168,144)

(55,832,649)

974,680,896

331,068,816

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(189,253,192)

(48,862,706)

1,137,416,013

732,213,617

Distributions

to

shareholders:

Class

A

........................

(10,477,873)

(23,887,218)

(41,895,287)

(73,915,473)

Class

A1

.......................

(23,398,439)

(56,617,836)

(137,896,226)

(326,246,620)

Class

C

........................

(1,602,562)

(5,344,917)

(13,375,767)

(47,366,175)

Class

R

........................

(182,133)

(439,687)

(3,405,155)

(7,457,012)

Class

R6

.......................

(3,736,553)

(8,320,373)

(6,963,915)

(14,174,816)

Advisor

Class

...................

(7,680,415)

(18,999,076)

(50,580,237)

(115,894,567)

Total

distributions

to

shareholders

.....

(47,077,975)

(113,609,107)

(254,116,587)

(585,054,663)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(121,380,999)

(41,286,508)

68,077,183

231,006,447

Class

A1

.......................

(123,569,867)

(476,854,975)

(40,429,925)

(149,939,578)

Class

C

........................

(31,479,505)

(148,136,268)

(27,244,479)

(208,206,881)

Class

R

........................

(1,303,785)

(7,497,229)

3,300,773

(3,125,939)

Class

R6

.......................

(40,326,309)

(46,647,889)

26,250,216

6,307,964

Advisor

Class

...................

(103,990,515)

(25,201,526)

33,947,576

(6,498,496)

Total

capital

share

transactions

.......

(422,050,980)

(745,624,395)

63,901,344

(130,456,483)

Net

increase

(decrease)

in

net

assets

.....................

(658,382,147)

(908,096,208)

947,200,770

16,702,471

Net

assets:

Beginning

of

period

................

4,338,368,955

5,246,465,163

6,092,393,388

6,075,690,917

End

of

period

.....................

$3,679,986,808

$4,338,368,955

$7,039,594,158

$6,092,393,388

Franklin

Custodian

Funds

117

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

1.

Organization

and

Significant

Accounting

Policies

Franklin

Custodian

Funds (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

six

separate

funds

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

classes

of

shares

offered

within

each

of

the

Funds

are

indicated

below.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

Class

A,

Class

C,

Class

R,

Class

R6,

&

Advisor

Class

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Class

A,

Class

A1,

Class

C,

Class

R,

Class

R6,

&

Advisor

Class

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

The

following

summarizes

the Funds'

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

118

franklintempleton.com

Semiannual

Report

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Funds'

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

March

31,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds'

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds'

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Funds

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Funds

do

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statements

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

119

franklintempleton.com

Semiannual

Report

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

period

end,

as

indicated

in

the

Schedules

of

Investments,

had

been

entered

into

on

March

31,

2022.

d.

Securities

Purchased

on

a

Delayed

Delivery

Basis

Certain

or

all

Funds

purchase

securities

on

a

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Funds

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

they

may

sell

the

securities

before

the

settlement

date.

e.

Derivative

Financial

Instruments

Certain

or

all

Funds

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statements

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statements

of

Operations.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

Certain

or

all

Funds

purchased

or

wrote

exchange

traded

option

contracts

primarily

to

manage

exposure

to

equity

price

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss.

See

Note

10

regarding

other

derivative

information.

f.

Equity-Linked

Securities

Certain

or

all

Funds

invest in

equity-linked

securities.

Equity-linked

securities

are

hybrid

financial

instruments

that

generally

combine

both

debt

and

equity

characteristics

into

a

single

note

form.

Income

received

from

equity-linked

securities

is

recorded

as

realized

gains

in

the

Statements

of

Operations

and

may

be

based

on

the

performance

of

an

underlying

equity

security,

an

equity

index,

or

an

option

position.

The

risks

of

investing

in

equity-linked

securities

include

unfavorable

price

movements

in

the

underlying

security

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

equity-linked

securities

and

the

appreciation

potential

may

be

limited.

Equity-linked

securities

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Funds.

g.

Securities

Lending

Certain

or

all

Funds

participate

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Joint

Repurchase

Agreement

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

120

franklintempleton.com

Semiannual

Report

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Funds,

and/

or

a

joint

repurchase

agreement.

Additionally,

at

March

31,

2022

the

Franklin

Growth

Fund

and

Franklin

Income

Fund

held

$4,589,742

and

$3,384,602,

respectively,

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held

as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-

cash

collateral

is

excluded

from

the

Statements

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-

party

vendor,

is

reported

separately

in

the

Statements

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

h.

Senior

Floating

Rate

Interests

Certain

or

all

Funds

invest

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

InterBank

Offered

Rate

(LIBOR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the

Funds

invest

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

i.

Income

and

Deferred

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

certain

or

all

Funds

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims).

Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statements of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statements

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

EU

reclaims

received

by

the

Funds,

if

any,

reduce

the

amount

of

foreign

taxes

Fund

shareholders

can

use

as

tax

deductions

or

credits

on

their

income

tax

returns.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

March

31,

2022, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

j.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

separately

on

the Statements

of

Operations.

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Securities

Lending

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

121

franklintempleton.com

Semiannual

Report

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-

dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Funds.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

k.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

l.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

j.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

122

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

March

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

a

...................................

8,526,767

$1,232,533,317

790,425

$23,989,206

Shares

issued

in

reinvestment

of

distributions

..........

1,053,359

163,734,102

15,386

489,286

Shares

redeemed

...............................

(7,468,867)

(1,053,740,689)

(528,635)

(14,944,043)

Net

increase

(decrease)

..........................

2,111,259

$342,526,730

277,176

$9,534,449

Year

ended

September

30,

2021

Shares

sold

a

...................................

22,450,304

$3,225,590,483

2,298,548

$66,948,165

Shares

issued

in

reinvestment

of

distributions

..........

—

—

11,547

311,678

Shares

redeemed

...............................

(14,413,505)

(2,058,883,152)

(832,827)

(23,797,456)

Net

increase

(decrease)

..........................

8,036,799

$1,166,707,331

1,477,268

$43,462,387

Class

C

Class

C

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

997,848

$117,486,843

68,388

$2,037,682

Shares

issued

in

reinvestment

of

distributions

..........

175,065

22,063,462

1,220

38,258

Shares

redeemed

a

..............................

(1,359,957)

(153,727,873)

(37,162)

(1,023,246)

Net

increase

(decrease)

..........................

(187,044)

$(14,177,568)

32,446

$1,052,694

Year

ended

September

30,

2021

Shares

sold

...................................

2,828,390

$329,663,898

181,084

$5,135,059

Shares

issued

in

reinvestment

of

distributions

..........

—

—

1,441

38,661

Shares

redeemed

a

..............................

(3,385,379)

(406,102,519)

(147,086)

(4,290,404)

Net

increase

(decrease)

..........................

(556,989)

$(76,438,621)

35,439

$883,316

Class

R

Class

R

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

282,132

$38,729,868

14,335

$418,516

Shares

issued

in

reinvestment

of

distributions

..........

30,631

4,583,974

186

5,897

Shares

redeemed

...............................

(243,220)

(32,435,970)

(15,916)

(422,696)

Net

increase

(decrease)

..........................

69,543

$10,877,872

(1,395)

$1,717

Year

ended

September

30,

2021

Shares

sold

...................................

616,643

$85,062,126

8,048

$254,410

Shares

issued

in

reinvestment

of

distributions

..........

—

—

198

5,336

Shares

redeemed

...............................

(446,989)

(62,208,133)

(2,717)

(80,067)

Net

increase

(decrease)

..........................

169,654

$22,853,993

5,529

$179,679

Class

R6

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

123

franklintempleton.com

Semiannual

Report

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

11,002,432

$1,650,385,451

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

819,201

134,013,149

13

415

Shares

redeemed

...............................

(7,192,188)

(1,057,878,960)

—

—

Net

increase

(decrease)

..........................

4,629,445

$726,519,640

13

$415

Year

ended

September

30,

2021

Shares

sold

...................................

25,514,587

$3,822,032,801

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

—

—

18

490

Shares

redeemed

...............................

(11,892,075)

(1,799,024,749)

(248)

(7,091)

Net

increase

(decrease)

..........................

13,622,512

$2,023,008,052

(230)

$(6,601)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

5,094,848

$758,830,512

222,352

$6,874,564

Shares

issued

in

reinvestment

of

distributions

..........

331,088

53,493,894

4,117

131,564

Shares

redeemed

...............................

(5,125,874)

(732,200,280)

(524,746)

(15,219,790)

Net

increase

(decrease)

..........................

300,062

$80,124,126

(298,277)

$(8,213,662)

Year

ended

September

30,

2021

Shares

sold

...................................

11,005,673

$1,635,552,794

914,232

$27,927,761

Shares

issued

in

reinvestment

of

distributions

..........

—

—

1,206

32,617

Shares

redeemed

...............................

(7,316,134)

(1,088,562,721)

(794,013)

(24,196,407)

Net

increase

(decrease)

..........................

3,689,539

$546,990,073

121,425

$3,763,971

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

124

franklintempleton.com

Semiannual

Report

Franklin

Growth

Fund

Franklin

Income

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

a

...................................

3,954,342

$572,502,804

945,898,753

$2,365,284,948

Shares

issued

in

reinvestment

of

distributions

..........

7,829,468

1,123,371,927

271,495,759

663,056,586

Shares

redeemed

...............................

(7,302,379)

(1,048,868,864)

(495,699,103)

(1,236,209,964)

Net

increase

(decrease)

..........................

4,481,431

$647,005,867

721,695,409

$1,792,131,570

Year

ended

September

30,

2021

Shares

sold

a

...................................

10,761,385

$1,530,421,261

2,486,746,513

$6,012,096,557

Shares

issued

in

reinvestment

of

distributions

..........

6,500,918

849,149,921

227,899,336

535,039,091

Shares

redeemed

...............................

(16,660,446)

(2,406,607,365)

(1,066,730,651)

(2,509,469,131)

Net

increase

(decrease)

..........................

601,857

$(27,036,183)

1,647,915,198

$4,037,666,517

Class

A1

Class

A1

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

—

$—

245,816,210

$615,557,189

Shares

issued

in

reinvestment

of

distributions

..........

—

—

591,408,115

1,448,912,811

Shares

redeemed

...............................

—

—

(895,830,655)

(2,239,077,472)

Net

increase

(decrease)

..........................

—

$—

(58,606,330)

$(174,607,472)

Year

ended

September

30,

2021

Shares

sold

...................................

—

$—

479,110,753

$1,144,654,736

Shares

issued

in

reinvestment

of

distributions

..........

—

—

670,125,547

1,566,412,599

Shares

redeemed

...............................

—

—

(2,421,276,941)

(5,699,137,243)

Net

increase

(decrease)

..........................

—

$—

(1,272,040,641)

$(2,988,069,908)

Class

C

Class

C

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

338,398

$43,385,028

198,513,894

$506,161,518

Shares

issued

in

reinvestment

of

distributions

..........

521,623

65,667,219

114,724,043

285,587,763

Shares

redeemed

a

..............................

(799,791)

(100,693,495)

(486,017,643)

(1,237,733,280)

Net

increase

(decrease)

..........................

60,230

$8,358,752

(172,779,706)

$(445,983,999)

Year

ended

September

30,

2021

Shares

sold

...................................

878,018

$110,767,406

369,536,736

$901,731,340

Shares

issued

in

reinvestment

of

distributions

..........

540,219

63,146,424

163,270,374

386,364,385

Shares

redeemed

a

..............................

(2,680,063)

(349,887,050)

(1,962,492,383)

(4,825,585,697)

Net

increase

(decrease)

..........................

(1,261,826)

$(175,973,220)

(1,429,685,273)

$(3,537,489,972)

Class

R

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

125

franklintempleton.com

Semiannual

Report

Franklin

Growth

Fund

Franklin

Income

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

95,901

$13,834,382

18,507,358

$45,298,126

Shares

issued

in

reinvestment

of

distributions

..........

244,578

34,832,817

4,668,609

11,168,435

Shares

redeemed

...............................

(429,382)

(62,469,836)

(12,305,601)

(30,263,436)

Net

increase

(decrease)

..........................

(88,903)

$(13,802,637)

10,870,366

$26,203,125

Year

ended

September

30,

2021

Shares

sold

...................................

250,280

$35,061,835

21,710,983

$51,205,964

Shares

issued

in

reinvestment

of

distributions

..........

250,543

32,588,126

4,834,655

11,084,861

Shares

redeemed

...............................

(1,128,351)

(158,527,106)

(29,013,897)

(67,167,117)

Net

increase

(decrease)

..........................

(627,528)

$(90,877,145)

(2,468,259)

$(4,876,292)

Class

R6

Class

R6

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

1,722,848

$249,268,095

214,341,083

$528,407,841

Shares

issued

in

reinvestment

of

distributions

..........

1,758,267

253,489,423

13,275,457

32,512,974

Shares

redeemed

in-kind

(Note

14

)

..................

(448,827)

(65,832,485)

—

—

Shares

redeemed

...............................

(3,336,482)

(481,733,103)

(39,606,298)

(98,760,329)

Net

increase

(decrease)

..........................

(304,194)

$(44,808,070)

188,010,242

$462,160,486

Year

ended

September

30,

2021

Shares

sold

...................................

3,272,102

$463,210,889

89,459,562

$211,443,897

Shares

issued

in

reinvestment

of

distributions

..........

1,693,859

221,624,576

21,206,893

47,792,309

Shares

redeemed

in-kind

(Note

14

)

..................

(859,936)

(116,617,086)

—

—

Shares

redeemed

...............................

(6,691,054)

(952,485,768)

(593,615,276)

(1,346,923,254)

Net

increase

(decrease)

..........................

(2,585,029)

$(384,267,389)

(482,948,821)

$(1,087,687,048)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

1,967,007

$284,288,765

610,857,996

$1,517,810,187

Shares

issued

in

reinvestment

of

distributions

..........

2,305,617

332,746,676

205,600,345

498,401,166

Shares

redeemed

...............................

(3,699,840)

(533,190,573)

(576,037,770)

(1,421,248,492)

Net

increase

(decrease)

..........................

572,784

$83,844,868

240,420,571

$594,962,861

Year

ended

September

30,

2021

Shares

sold

...................................

6,084,784

$911,711,800

1,011,404,240

$2,393,159,824

Shares

issued

in

reinvestment

of

distributions

..........

1,944,250

254,677,320

215,574,797

501,000,847

Shares

redeemed

...............................

(7,510,655)

(1,092,120,786)

(1,052,411,881)

(2,444,993,511)

Net

increase

(decrease)

..........................

518,379

$74,268,334

174,567,156

$449,167,160

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

126

franklintempleton.com

Semiannual

Report

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

a

...................................

16,413,047

$94,894,782

7,588,694

$162,260,059

Shares

issued

in

reinvestment

of

distributions

..........

1,733,110

9,946,502

1,795,494

36,670,220

Shares

redeemed

...............................

(39,147,191)

(226,222,283)

(6,106,782)

(130,853,096)

Net

increase

(decrease)

..........................

(21,001,034)

$(121,380,999)

3,277,406

$68,077,183

Year

ended

September

30,

2021

Shares

sold

a

...................................

89,048,888

$536,625,922

22,811,120

$471,624,865

Shares

issued

in

reinvestment

of

distributions

..........

3,796,157

22,766,715

3,159,167

62,740,214

Shares

redeemed

...............................

(99,939,196)

(600,679,145)

(14,909,843)

(303,358,632)

Net

increase

(decrease)

..........................

(7,094,151)

$(41,286,508)

11,060,444

$231,006,447

Class

A1

Class

A1

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

6,948,585

$39,826,895

3,003,257

$64,104,793

Shares

issued

in

reinvestment

of

distributions

..........

3,682,509

21,139,047

6,180,905

126,218,968

Shares

redeemed

...............................

(31,916,328)

(184,535,809)

(10,850,149)

(230,753,686)

Net

increase

(decrease)

..........................

(21,285,234)

$(123,569,867)

(1,665,987)

$(40,429,925)

Year

ended

September

30,

2021

Shares

sold

...................................

32,558,459

$196,137,703

6,411,233

$130,366,150

Shares

issued

in

reinvestment

of

distributions

..........

7,736,135

46,404,671

15,028,911

298,136,413

Shares

redeemed

...............................

(120,294,904)

(719,397,349)

(28,494,750)

(578,442,141)

Net

increase

(decrease)

..........................

(80,000,310)

$(476,854,975)

(7,054,606)

$(149,939,578)

Class

C

Class

C

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

3,024,450

$17,370,982

842,399

$17,910,016

Shares

issued

in

reinvestment

of

distributions

..........

276,574

1,575,616

642,392

13,009,939

Shares

redeemed

a

..............................

(8,780,671)

(50,426,103)

(2,752,963)

(58,164,434)

Net

increase

(decrease)

..........................

(5,479,647)

$(31,479,505)

(1,268,172)

$(27,244,479)

Year

ended

September

30,

2021

Shares

sold

...................................

12,752,895

$76,470,649

2,249,049

$45,668,999

Shares

issued

in

reinvestment

of

distributions

..........

876,685

5,224,662

2,345,268

46,172,729

Shares

redeemed

a

..............................

(38,672,490)

(229,831,579)

(14,504,035)

(300,048,609)

Net

increase

(decrease)

..........................

(25,042,910)

$(148,136,268)

(9,909,718)

$(208,206,881)

Class

R

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

127

franklintempleton.com

Semiannual

Report

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

260,507

$1,499,264

512,550

$10,924,601

Shares

issued

in

reinvestment

of

distributions

..........

31,589

181,280

166,894

3,389,294

Shares

redeemed

...............................

(515,843)

(2,984,329)

(519,831)

(11,013,122)

Net

increase

(decrease)

..........................

(223,747)

$(1,303,785)

159,613

$3,300,773

Year

ended

September

30,

2021

Shares

sold

...................................

908,077

$5,471,084

938,885

$19,039,802

Shares

issued

in

reinvestment

of

distributions

..........

71,959

431,680

376,330

7,434,213

Shares

redeemed

...............................

(2,226,889)

(13,399,993)

(1,459,736)

(29,599,954)

Net

increase

(decrease)

..........................

(1,246,853)

$(7,497,229)

(144,521)

$(3,125,939)

Class

R6

Class

R6

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

6,139,960

$35,727,066

1,919,955

$41,464,483

Shares

issued

in

reinvestment

of

distributions

..........

640,000

3,690,315

335,442

6,929,859

Shares

redeemed

...............................

(13,858,280)

(79,743,690)

(1,027,333)

(22,144,126)

Net

increase

(decrease)

..........................

(7,078,320)

$(40,326,309)

1,228,064

$26,250,216

Year

ended

September

30,

2021

Shares

sold

...................................

14,680,034

$88,831,810

2,602,530

$53,255,623

Shares

issued

in

reinvestment

of

distributions

..........

1,368,088

8,243,208

705,440

14,135,443

Shares

redeemed

...............................

(23,746,448)

(143,722,907)

(2,987,204)

(61,083,102)

Net

increase

(decrease)

..........................

(7,698,326)

$(46,647,889)

320,766

$6,307,964

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

March

31,

2022

Shares

sold

...................................

11,123,817

$64,183,857

6,411,817

$139,428,391

Shares

issued

in

reinvestment

of

distributions

..........

1,228,039

7,080,019

2,297,573

47,428,059

Shares

redeemed

...............................

(30,183,765)

(175,254,391)

(7,129,399)

(152,908,874)

Net

increase

(decrease)

..........................

(17,831,909)

$(103,990,515)

1,579,991

$33,947,576

Year

ended

September

30,

2021

Shares

sold

...................................

100,843,441

$605,662,748

15,271,199

$312,500,667

Shares

issued

in

reinvestment

of

distributions

..........

2,890,966

17,388,910

5,397,482

108,098,490

Shares

redeemed

...............................

(108,356,509)

(648,253,184)

(20,941,268)

(427,097,653)

Net

increase

(decrease)

..........................

(4,622,102)

$(25,201,526)

(272,587)

$(6,498,496)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

128

franklintempleton.com

Semiannual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Trust

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

Franklin

Income

Fund

and

Franklin

Utilities

Fund

pay

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

month-end

net

assets

of

each

of

the

Funds

as

follows:

Franklin

DynaTech

Fund,

Franklin

Growth

Fund

and

Franklin

U.S.

Government

Securities

Fund

pay

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

month-end

net

assets

of

each

of

the

Funds

as

follows:

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

Over

$20

billion,

up

to

and

including

$35

billion

0.355%

Over

$35

billion,

up

to

and

including

$50

billion

0.350%

Over

$50

billion,

up

to

and

including

$65

billion

0.345%

Over

$65

billion,

up

to

and

including

$80

billion

0.340%

In

excess

of

$80

billion

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

Over

$20

billion,

up

to

and

including

$35

billion

0.355%

Over

$35

billion,

up

to

and

including

$50

billion

0.350%

In

excess

of

$50

billion

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

129

franklintempleton.com

Semiannual

Report

Franklin

Focused

Growth

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund as

follows:

For

the

period

ended

March

31,

2022,

each

Fund's

annualized

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

as

follows:

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds.

The

fee

is

paid

by

Advisers

based

on

each

of

the

Funds'

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Funds.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

and

A1

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

and

A1

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

Annualized

Fee

Rate

Net

Assets

0.700%

Up

to

and

including

$500

million

0.600%

Over

$500

million,

up

to

and

including

$1

billion

0.550%

Over

$1

billion,

up

to

and

including

$3

billion

0.500%

Over

$3

billion,

up

to

and

including

$5

billion

0.450%

In

excess

of

$5

billion

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Gross

effective

investment

management

fee

rate

........

0.410%

0.700%

0.423%

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Gross

effective

investment

management

fee

rate

........

0.375%

0.449%

0.458%

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

130

franklintempleton.com

Semiannual

Report

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

period:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Reimbursement

Plans:

Class

A

...............................

0.25%

0.25%

0.25%

Compensation

Plans:

Class

C

...............................

1.00%

1.00%

1.00%

Class

R

...............................

0.50%

0.50%

0.50%

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Reimbursement

Plans:

Class

A

...............................

0.25%

0.25%

0.25%

Class

A1

..............................

0.15%

0.15%

0.15%

Compensation

Plans:

Class

C

...............................

0.65%

0.65%

0.65%

Class

R

...............................

0.50%

0.50%

0.50%

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$1,992,916

$40,208

$765,975

CDSC

retained

...........................

$186,944

$4,835

$33,915

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$1,371,131

$25,114

$57,399

CDSC

retained

...........................

$532,220

$140,045

$17,834

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

131

franklintempleton.com

Semiannual

Report

For

the

period

ended

March

31,

2022,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

f.

Investments

in

Affiliated

Management

Investment

Companies

Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

March

31,

2022,

investments

in

affiliated

management

investment

companies

were

as

follows:

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Transfer

agent

fees

........................

$4,317,395

$68,333

$4,214,988

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Transfer

agent

fees

........................

$13,581,933

$1,318,526

$1,507,992

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

DynaTech

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

396,130,154

$

3,120,260,194

$

(3,202,749,653)

$

—

$

—

$

313,640,695

313,640,695

$

12,717

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

44,677,000

857,243,000

(868,980,000)

—

—

32,940,000

32,940,000

5,310

Total

Affiliated

Securities

...

$440,807,154

$3,977,503,194

$(4,071,729,653)

$—

$—

$346,580,695

$18,027

Franklin

Focused

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

3,205,079

$24,988,552

$(26,121,985)

$

—

$

—

$

2,071,646

2,071,646

$

148

Total

Affiliated

Securities

...

$3,205,079

$24,988,552

$(26,121,985)

$—

$—

$2,071,646

$148

3.

Transactions

with

Affiliates

(continued)

e.

Transfer

Agent

Fees

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

132

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

Franklin

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

141,998,542

$1,002,155,109

$(1,066,320,459)

$

—

$

—

$77,833,192

77,833,192

$5,554

$

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

76,774,000

363,614,000

(421,444,000)

—

—

18,944,000

18,944,000

2,211

Total

Affiliated

Securities

...

$218,772,542

$1,365,769,109

$(1,487,764,459)

$—

$—

$96,777,192

$7,765

Franklin

Income

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

3,428,988,776

$

10,766,404,378

$(12,183,067,612)

$

—

$

—

$2,012,325,542

2,012,325,542

$121,035

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

1,876,000

482,977,697

(394,517,697)

—

—

90,336,000

90,336,000

1,325

Total

Affiliated

Securities

...

$3,430,864,776

$11,249,382,075

$(12,577,585,309)

$—

$—

$2,102,661,542

$122,360

Franklin

U.S.

Government

Securities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

85,708,046

$480,894,596

$(477,208,501)

$—

$—

$89,394,141

89,394,141

$3,480

Total

Affiliated

Securities

...

$85,708,046

$480,894,596

$(477,208,501)

$—

$—

$89,394,141

$3,480

Franklin

Utilities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$

12,629,462

$

237,976,750

$(213,739,968)

$

—

$

—

$36,866,244

36,866,244

$

862

Total

Affiliated

Securities

...

$12,629,462

$237,976,750

$(213,739,968)

$—

$—

$36,866,244

$862

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

133

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

respective

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Franklin

Focused

Growth

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

does

not

exceed

0.85%

based

on

the

average

net

assets

of

each

class

until

January

31,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

January

31,

2023.

h.

Interfund

Transactions

Certain

or

all

Funds

engaged

in

purchases

and

sales

of

investments

with

funds

or

other

accounts

that

have

common

investment

managers

(or

affiliated

investment

managers),

directors,

trustees

or

officers.

These

purchases,

sales

and

the

related

net

realized

gains

(losses),

if

any,

for

the

period

ended

March

31,

2022,

were

as

follows:

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the period

ended

March

31,

2022, the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

 At

September

30,

2021,

the

capital

loss

carryforwards

were

as

follows:

Franklin

Income

Fund

Purchases

..............................

$18,212,500

Sales

..................................

—

Realized

gain

(loss)

.......................

—

Franklin

U.S.

Government

Securities

Fund

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

.............................

$

280,349,613

Long

term

.............................

410,781,366

Total

capital

loss

carryforwards

............

$691,130,979

3.

Transactions

with

Affiliates

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

134

franklintempleton.com

Semiannual

Report

For

tax

purposes,

the

Funds

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

September

30,

2021,

the

deferred

losses

were

as

follows:

At

March

31,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

defaulted

securities,

EU

reclaims,

passive

foreign

investment

company

shares,

paydown

losses,

bond

discounts

and

premiums,

corporate

actions,

equity-linked

securities,

wash

sales

and

gains

realized

on

in-kind

shareholder

redemptions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

in-kind

transactions)

for

the

period

ended

March

31,

2022,

were

as

follows:

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

a

a

a

Late-year

ordinary

loss

.....................

$88,558,636

$559,818

Post-October

capital

loss

...................

—

18,568

$88,558,636

$578,386

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

a

a

a

a

Cost

of

investments

.......................

$13,780,158,564

$85,315,272

$6,091,948,973

Unrealized

appreciation

.....................

$10,341,431,287

$18,505,942

$13,996,555,882

Unrealized

depreciation

.....................

(198,825,662)

(3,210,246)

(347,317,392)

Net

unrealized

appreciation

(depreciation)

.......

$10,142,605,625

$15,295,696

$13,649,238,490

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

a

a

a

a

Cost

of

investments

.......................

$72,332,526,472

$3,797,293,674

$3,071,557,198

Unrealized

appreciation

.....................

$6,756,866,103

$38,680,244

$3,934,010,667

Unrealized

depreciation

.....................

(2,857,199,102)

(147,714,259)

(6,465,517)

Net

unrealized

appreciation

(depreciation)

.......

$3,899,667,001

$(109,034,015)

$3,927,545,150

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Purchases

..............................

$7,480,360,587

$36,051,586

$688,507,706

Sales

..................................

$6,630,727,860

$29,530,971

$1,773,966,219

a

5.

Income

Taxes

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

135

franklintempleton.com

Semiannual

Report

a

Sales

of

investments

excludes

in-kind

transactions

of

$64,770,944.

At

March

31,

2022

,

in

connection

with

securities

lending

transactions,

certain

or

all

Funds

loaned

investments

and

received

cash

collateral

as

follows:

7.

Credit Risk

At

March

31,

2022,

Franklin

Income

Fund

had

25.5%

of

its

portfolio

invested

in

high

yield

securities,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

8.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Funds

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

9.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

10.

Restricted

Securities

Certain

or

all

Funds

invest

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

Purchases

..............................

$25,807,210,803

$852,659,950

$163,646,425

Sales

..................................

$22,719,338,041

$1,293,905,871

$331,086,333

Franklin

DynaTech

Fund

Franklin

Growth

Fund

Franklin

Income

Fund

Securities

lending

transactions

a

:

Equity

investments

b

........................

$41,175,498

$23,680,330

$113,119,450

a

The

agreements

can

be

terminated

at

any

time.

b

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statements

of

Assets

and

Liabilities.

6.

Investment

Transactions

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

136

franklintempleton.com

Semiannual

Report

At

March

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

11.

Other

Derivative

Information

At

March

31,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statements

of

Assets

and

Liabilities

as

follows:

For

the

period

ended

March

31,

2022,

the

effect

of

derivative

contracts

in

the

Statements

of

Operations

was

as

follows:

For

the

period

ended

March

31,

2022,

the

average

month

end

notional

amount

of

options

represented

32,958,314

shares.

See

Note

1(e)

regarding

derivative

financial

instruments. 

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Fund

25,413

Canva

,

Inc.

................................

11/08/21

$

43,323,040

$

20,070,622

2,353

Canva

,

Inc.,

A

..............................

11/08/21

4,011,298

1,858,347

94

Canva

,

Inc.,

A-3

.............................

11/08/21

160,247

74,239

8

Canva

,

Inc.,

A-4

.............................

11/08/21

13,638

6,318

5

Canva

,

Inc.,

A-5

.............................

11/08/21

8,524

3,949

96,603

Checkout

Payments

Group

Ltd.,

B

...............

1/11/22

30,000,062

30,000,062

822,494

Gusto,

Inc.,

E

...............................

7/13/21

24,999,977

16,732,791

849,894

OneTrust

LLC,

C

............................

4/01/21

16,666,676

13,603,370

540,043

Stripe,

Inc.,

B

...............................

5/18/21

21,671,052

15,720,690

756,137

Stripe,

Inc.,

H

...............................

3/15/21

30,339,997

22,011,201

Total

Restricted

Securities

(Value

is

0.6%

of

Net

Assets)

..............

$171,194,511

$120,081,589

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Income

Fund

Equity

contracts

...........

Investments

in

securities,

at

value

$

—

Options

written,

at

value

$

68,486,000

Total

....................

$—

$68,486,000

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Income

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Equity

Contracts

..............

Written

options

$165,771,414

Written

options

$8,513,077

Total

.......................

$165,771,414

$8,513,077

10.

Restricted

Securities

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

137

franklintempleton.com

Semiannual

Report

12.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

period

ended

March

31,

2022,

investments

in

“affiliated

companies”

were

as

follows:

13.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

period ended

March

31,

2022,

the

Funds

did

not

use

the

Global

Credit

Facility.

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount

Held

at

End

of

Period

Investment

Income

Franklin

Income

Fund

Non-Controlled

Affiliates

Dividends

Chesapeake

Energy

Corp.

$

307,950,000

$

—

$

(219,917,255)

$

(172,170,414)

$

—

a

$

—

a

—

$

10,132,844

Chesapeake

Energy

Corp.,

2/09/26

..........

391,333,500

—

(443,405,550)

(211,758,187)

—

b

 —

b

—

3,000

Chesapeake

Energy

Corp.,

Escrow

Account,

144A

26,742,500

—

—

—

—

a

—

a

—

734,375

CHS/Community

Health

Systems,

Inc.

......

117,000,000

—

—

—

1,700,000

118,700,000

10,000,000

—

Civitas

Resources,

Inc.

.

162,860,000

—

(178,910,510)

50,730,510

—

b

—

b

—

1,140,106

Weatherford

International

plc

.............

232,499,400

—

(145,703,176)

39,663,176

106,640,600

233,100,000

7,000,000

—

$1,238,385,400

$—

$(987,936,491)

$

(293,534,915)

$

108,340,600

$351,800,000

—

$

12,010,325

Interest

Civitas

Resources,

Inc.,

Senior

Note,

7.5%,

4/30/26

..........

33,003,296

—

—

—

—

a

—

a

—

1,233,576

Total

Affiliated

Securities

(Value

is

0.5%

of

Net

Assets)

..........

$1,271,388,696

$—

$(987,936,491)

(293,534,915)

108,340,600

$351,800,000

$13,243,901

a

As

of

March

31,

2022,

no

longer

an

affiliate.

b

As

of

March

31,

2022,

no

longer

held

by

the

fund.

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

138

franklintempleton.com

Semiannual

Report

14.

Redemption

In-Kind

During

the

period

ended

March

31,

2022

and

year

ended

September

30,

2021,

the

Fund

realized

$47,765,967

and

$80,827,002,

respectively,

of

net

gains

resulting

from

redemptions

in-kind

in

which

a

shareholder

redeemed

fund

shares

for

cash

and

securities

held

by

the

Fund.

Because

such

gains

are

not

taxable

to

the

Fund,

and

are

not

distributed

to

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

to

paid-in

capital.

15.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

March

31,

2022,

in

valuing

the

Funds'

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

DynaTech

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

167,761,500

$

—

$

—

$

167,761,500

Automobiles

..........................

716,604,000

—

—

716,604,000

Banks

...............................

153,848,750

—

—

153,848,750

Biotechnology

.........................

29,068,000

78,228,428

—

107,296,428

Capital

Markets

........................

683,405,500

—

—

683,405,500

Chemicals

...........................

100,431,500

95,740,682

—

196,172,182

Construction

&

Engineering

...............

66,463,050

—

—

66,463,050

Electric

Utilities

........................

296,485,000

—

—

296,485,000

Electronic

Equipment,

Instruments

&

Components

........................

300,669,500

92,751,951

—

393,421,451

Energy

Equipment

&

Services

.............

87,384,000

—

—

87,384,000

Entertainment

.........................

167,706,000

—

—

167,706,000

Equity

Real

Estate

Investment

Trusts

(REITs)

.

208,970,000

—

—

208,970,000

Health

Care

Equipment

&

Supplies

.........

1,633,238,250

—

—

1,633,238,250

Health

Care

Providers

&

Services

..........

254,985,000

—

—

254,985,000

Health

Care

Technology

.................

412,193,000

—

—

412,193,000

Hotels,

Restaurants

&

Leisure

.............

231,346,000

—

—

231,346,000

Industrial

Conglomerates

................

236,115,000

—

—

236,115,000

Interactive

Media

&

Services

..............

1,477,470,000

23,047,319

—

1,500,517,319

Internet

&

Direct

Marketing

Retail

..........

1,855,976,200

1,353,097

—

1,857,329,297

IT

Services

...........................

1,803,342,388

396,192,678

—

2,199,535,066

Life

Sciences

Tools

&

Services

............

1,589,386,000

161,473,990

—

1,750,859,990

Media

...............................

12,765,244

—

—

12,765,244

Pharmaceuticals

.......................

428,537,500

—

—

428,537,500

Professional

Services

...................

59,949,000

—

—

59,949,000

Semiconductors

&

Semiconductor

Equipment

.

3,306,970,500

54,627,169

—

3,361,597,669

Software

.............................

5,995,631,800

—

—

5,995,631,800

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

139

franklintempleton.com

Semiannual

Report

Level

1

Level

2

Level

3

Total

Franklin

DynaTech

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Technology

Hardware,

Storage

&

Peripherals

.

$

349,220,000

$

—

$

—

$

349,220,000

Trading

Companies

&

Distributors

..........

38,610,000

—

—

38,610,000

Short

Term

Investments

...................

346,580,695

8,235,498

—

354,816,193

Total

Investments

in

Securities

...........

$23,011,113,377

$911,650,812

a

$—

$23,922,764,189

Franklin

Focused

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

1,101,840

—

—

1,101,840

Automobiles

..........................

5,819,040

—

—

5,819,040

Capital

Markets

........................

2,262,960

—

—

2,262,960

Electric

Utilities

........................

3,939,015

—

—

3,939,015

Energy

Equipment

&

Services

.............

924,814

—

—

924,814

Entertainment

.........................

567,086

—

—

567,086

Equity

Real

Estate

Investment

Trusts

(REITs)

.

2,064,600

—

—

2,064,600

Food

&

Staples

Retailing

.................

4,606,800

—

—

4,606,800

Health

Care

Equipment

&

Supplies

.........

7,666,780

—

—

7,666,780

Health

Care

Technology

.................

1,062,300

—

—

1,062,300

Interactive

Media

&

Services

..............

5,562,700

—

—

5,562,700

Internet

&

Direct

Marketing

Retail

..........

10,731,434

—

—

10,731,434

IT

Services

...........................

6,135,654

1,980,963

—

8,116,617

Life

Sciences

Tools

&

Services

............

4,941,830

—

—

4,941,830

Metals

&

Mining

.......................

953,864

—

—

953,864

Personal

Products

.....................

1,225,440

—

—

1,225,440

Road

&

Rail

..........................

500,770

—

—

500,770

Semiconductors

&

Semiconductor

Equipment

.

15,672,761

—

—

15,672,761

Software

.............................

20,818,671

—

—

20,818,671

Short

Term

Investments

...................

2,071,646

—

—

2,071,646

Total

Investments

in

Securities

...........

$98,630,005

$1,980,963

b

$—

$100,610,968

Franklin

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

851,992,248

—

—

851,992,248

Auto

Components

......................

72,478,180

—

—

72,478,180

Automobiles

..........................

204,288,990

—

—

204,288,990

Beverages

...........................

553,104,358

—

—

553,104,358

Biotechnology

.........................

352,690,976

—

—

352,690,976

Building

Products

......................

240,161,370

—

—

240,161,370

Capital

Markets

........................

861,110,309

—

—

861,110,309

Chemicals

...........................

459,519,683

—

—

459,519,683

Commercial

Services

&

Supplies

...........

84,615,163

—

—

84,615,163

Construction

Materials

..................

119,870,142

—

—

119,870,142

Electric

Utilities

........................

170,601,027

—

—

170,601,027

Electrical

Equipment

....................

91,453,507

—

—

91,453,507

Electronic

Equipment,

Instruments

&

Components

........................

589,675,531

—

—

589,675,531

Entertainment

.........................

230,158,987

—

—

230,158,987

Equity

Real

Estate

Investment

Trusts

(REITs)

.

207,179,349

—

—

207,179,349

Food

&

Staples

Retailing

.................

21,536,790

—

—

21,536,790

Food

Products

........................

32,225,529

—

—

32,225,529

Health

Care

Equipment

&

Supplies

.........

944,590,849

—

—

944,590,849

15.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

140

franklintempleton.com

Semiannual

Report

Level

1

Level

2

Level

3

Total

Franklin

Growth

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Health

Care

Providers

&

Services

..........

$

196,836,597

$

—

$

—

$

196,836,597

Health

Care

Technology

.................

62,914,943

—

—

62,914,943

Hotels,

Restaurants

&

Leisure

.............

186,196,723

—

—

186,196,723

Interactive

Media

&

Services

..............

896,116,625

—

—

896,116,625

Internet

&

Direct

Marketing

Retail

..........

879,012,918

—

—

879,012,918

IT

Services

...........................

1,024,016,212

117,702,902

20,070,622

1,161,789,736

Life

Sciences

Tools

&

Services

............

1,221,609,096

—

—

1,221,609,096

Machinery

............................

745,316,924

—

—

745,316,924

Media

...............................

106,694,158

—

—

106,694,158

Personal

Products

.....................

55,913,063

—

—

55,913,063

Pharmaceuticals

.......................

799,258,619

—

—

799,258,619

Professional

Services

...................

252,448,894

—

—

252,448,894

Road

&

Rail

..........................

725,123,083

—

—

725,123,083

Semiconductors

&

Semiconductor

Equipment

.

1,429,166,286

—

—

1,429,166,286

Software

.............................

3,250,261,862

—

45,720,752

3,295,982,614

Technology

Hardware,

Storage

&

Peripherals

.

958,340,001

—

—

958,340,001

Textiles,

Apparel

&

Luxury

Goods

..........

251,539,332

—

—

251,539,332

Trading

Companies

&

Distributors

..........

160,203,166

—

—

160,203,166

Water

Utilities

.........................

113,667,961

—

—

113,667,961

Convertible

Preferred

Stocks

...............

—

—

54,290,215

54,290,215

Short

Term

Investments

...................

96,777,192

4,736,329

—

101,513,521

Total

Investments

in

Securities

...........

$19,498,666,643

$122,439,231

c

$120,081,589

$19,741,187,463

Franklin

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

955,302,619

—

—

955,302,619

Banks

...............................

2,163,049,700

310,179,843

—

2,473,229,543

Beverages

...........................

376,605,000

—

—

376,605,000

Biotechnology

.........................

1,213,135,000

—

—

1,213,135,000

Capital

Markets

........................

349,600,000

—

—

349,600,000

Chemicals

...........................

249,910,000

313,875,705

—

563,785,705

Communications

Equipment

..............

557,600,000

—

—

557,600,000

Containers

&

Packaging

.................

210,013,697

—

—

210,013,697

Diversified

Telecommunication

Services

.....

2,085,773,501

—

—

2,085,773,501

Electric

Utilities

........................

3,984,150,000

—

—

3,984,150,000

Energy

Equipment

&

Services

.............

233,100,000

—

—

233,100,000

Entertainment

.........................

75,438,000

—

—

75,438,000

Food

&

Staples

Retailing

.................

297,914,460

—

—

297,914,460

Health

Care

Equipment

&

Supplies

.........

443,800,000

—

—

443,800,000

Health

Care

Providers

&

Services

..........

118,700,000

—

—

118,700,000

Household

Products

....................

343,800,000

—

—

343,800,000

Independent

Power

and

Renewable

Electricity

Producers

..........................

127,875,000

—

—

127,875,000

Industrial

Conglomerates

................

410,027,400

553,944,443

—

963,971,843

Insurance

............................

298,809,336

—

—

298,809,336

IT

Services

...........................

390,060,000

—

—

390,060,000

Media

...............................

321,793,860

—

—

321,793,860

Metals

&

Mining

.......................

176,962,500

—

—

176,962,500

Multi-Utilities

..........................

2,068,065,000

—

—

2,068,065,000

Oil,

Gas

&

Consumable

Fuels

.............

3,169,681,380

—

—

3,169,681,380

Personal

Products

.....................

—

454,062,485

—

454,062,485

Pharmaceuticals

.......................

3,147,405,000

737,703,701

—

3,885,108,701

15.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

141

franklintempleton.com

Semiannual

Report

Level

1

Level

2

Level

3

Total

Franklin

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Semiconductors

&

Semiconductor

Equipment

.

$

899,298,840

$

—

$

—

$

899,298,840

Specialty

Retail

........................

299,330,000

—

—

299,330,000

Tobacco

.............................

516,670,000

84,000,831

—

600,670,831

Wireless

Telecommunication

Services

.......

—

286,984,394

—

286,984,394

Equity-Linked

Securities

...................

—

13,422,511,379

—

13,422,511,379

Convertible

Preferred

Stocks

:

Capital

Markets

........................

100,318,500

—

—

100,318,500

Electric

Utilities

........................

1,386,570,000

—

—

1,386,570,000

Machinery

............................

19,944,000

—

—

19,944,000

Multi-Utilities

..........................

621,769,660

—

—

621,769,660

Thrifts

&

Mortgage

Finance

...............

—

32,937,500

—

32,937,500

Preferred

Stocks

........................

31,480,000

—

—

31,480,000

Convertible

Bonds

.......................

—

291,146,012

—

291,146,012

Corporate

Bonds

........................

—

23,053,507,570

—

23,053,507,570

Senior

Floating

Rate

Interests

...............

—

139,057,189

—

139,057,189

U.S.

Government

and

Agency

Securities

.......

—

6,742,236,330

—

6,742,236,330

Asset-Backed

Securities

..................

—

49,898,124

—

49,898,124

Mortgage-Backed

Securities

................

—

33,387,522

—

33,387,522

Escrows

and

Litigation

Trusts

...............

—

25,849,000

—

25,849,000

Short

Term

Investments

...................

2,102,661,542

22,783,450

—

2,125,444,992

Total

Investments

in

Securities

...........

$29,746,613,995

$46,554,065,478

d

$—

$76,300,679,473

Liabilities:

Other

Financial

Instruments:

Options

written

..........................

$

68,486,000

$

—

$

—

$

68,486,000

Total

Other

Financial

Instruments

.........

$68,486,000

$—

$—

$68,486,000

Franklin

U.S.

Government

Securities

Fund

Assets:

Investments

in

Securities:

e

U.S.

Government

and

Agency

Securities

.......

—

18,928,164

—

18,928,164

Mortgage-Backed

Securities

................

—

3,579,937,354

—

3,579,937,354

Short

Term

Investments

...................

89,394,141

—

—

89,394,141

Total

Investments

in

Securities

...........

$89,394,141

$3,598,865,518

$—

$3,688,259,659

Franklin

Utilities

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Construction

&

Engineering

...............

71,955,000

—

—

71,955,000

Diversified

Telecommunication

Services

.....

—

78,368,326

—

78,368,326

Electric

Utilities

........................

3,995,994,606

32,585,242

—

4,028,579,848

Gas

Utilities

..........................

126,563,000

—

—

126,563,000

Independent

Power

and

Renewable

Electricity

Producers

..........................

88,677,000

—

—

88,677,000

Multi-Utilities

..........................

2,129,406,182

181,424,472

—

2,310,830,654

Oil,

Gas

&

Consumable

Fuels

.............

151,114,000

—

—

151,114,000

Water

Utilities

.........................

76,695,000

29,453,276

—

106,148,276

Short

Term

Investments

...................

36,866,244

—

—

36,866,244

Total

Investments

in

Securities

...........

$6,677,271,032

$321,831,316

f

$—

$6,999,102,348

a

Includes

foreign

securities

valued

at

$903,415,314,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

15.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Notes

to

Financial

Statements

(unaudited)

142

franklintempleton.com

Semiannual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the period. 

16.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

17.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

b

Includes

foreign

securities

valued

at

$1,980,963,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

c

Includes

foreign

securities

valued

at

$117,702,902,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

d

Includes

foreign

securities

valued

at

$2,740,751,402,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

e

For

detailed

categories,

see

the

accompanying

schedule

of

investments.

f

Includes

foreign

securities

valued

at

$243,462,990,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Currency

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

LIBOR

London

Inter-Bank

Offered

Rate

NYRS

New

York

Registry

Shares

PIK

Payment-In-Kind

SOFR

Secured

Overnight

Financing

Rate

15.

Fair

Value

Measurements

(continued)

Franklin

Custodian

Funds

Shareholder

Information

143

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

CUSTODIAN

FUNDS

Franklin

DynaTech

Fund

Franklin

Focused

Growth

Fund

Franklin

Growth

Fund

Franklin

Income

Fund

Franklin

U.S.

Government

Securities

Fund

Franklin

Utilities

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

February

28,

2022

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Custodian

Funds

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Funds.

The

Board

acknowledged

the

ongoing

integration

of

the

Legg

Mason

family

of

funds

into

the

FT

family

of

funds

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

recent

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Franklin

Custodian

Funds

Shareholder

Information

144

franklintempleton.com

Semiannual

Report

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

being

a

global

leader

in

stewardship

and

sustainability

and

the

recent

addition

of

a

senior

executive

focused

on

environmental,

social

and

governance

and

climate

control

initiatives.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

November

30,

2021.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

considered

the

performance

returns

for

the

Franklin

Income

Fund

in

comparison

to

the

performance

returns

of

a

customized

peer

group

(Performance

Customized

Peer

Group)

selected

by

the

Manager.

The

Board

further

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

DynaTech

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

multi-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Focused

Growth

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

large-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Growth

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

multi-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

also

noted

that,

while

below

the

median,

the

Fund’s

three-

and

five-

year

annualized

total

return

was

22.83%

and

20.32%,

respectively.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Income

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

flexible

portfolio

funds.

The

Performance

Customized

Peer

Group

for

the

Fund

included

funds

sorted

by

trailing

12-month

yield

and

set

to

be

top

quartile

(highest

yield).

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

medians

and

in

the

first

quintile

(best)

of

its

Performance

Universe

and

Performance

Customized

Peer

Group.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

above

the

medians

of

its

Performance

Universe

and

Performance

Customized

Peer

Group,

and

for

the

three-

and

five-year

periods

was

below

the

medians

of

its

Performance

Universe

and

Performance

Customized

Peer

Group.

The

Board

considered

the

income-related

attributes

of

the

Fund

(such

as

a

fund’s

investment

objective

and/or

investment

strategy)

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

the

Fund’s

income-related

attributes

and

investor

expectations.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

U.S.

Government

Securities

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

Government

National

Mortgage

Association

(Ginnie

Mae)

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

the

Fund’s

conservative

policy

of

investing

substantially

all

of

its

assets

in

Ginnie

Mae

obligations.

The

Board

considered

the

income-related

attributes

of

the

Fund

(such

as

a

fund’s

investment

objective

and/or

investment

strategy)

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

the

Fund’s

income-related

attributes

and

investor

expectations.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Custodian

Funds

Shareholder

Information

145

franklintempleton.com

Semiannual

Report

Franklin

Utilities

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

utility

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

three-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

discussed

the

Fund’s

annualized

total

return

performance

with

management

and

management

explained

that

the

Fund

invests

at

least

80%

of

its

net

assets

in

the

securities

of

public

utilities

companies,

whereas

peers

have

less

exposure

to

the

utilities

sector

and

benefitted

from

the

performance

of

their

non-utilities

sector

holdings.

The

Board

considered

the

income-related

attributes

of

the

Fund

(such

as

a

fund’s

investment

objective

and/or

investment

strategy)

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

the

Fund’s

income-related

attributes

and

investor

expectations.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A1

shares

for

the

Franklin

Income

Fund,

Franklin

U.S.

Government

Securities

Fund

and

Franklin

Utilities

Fund

and

for

Class

A

shares

for

the

Franklin

DynaTech

Fund

and

Franklin

Growth

Fund

and

for

each

other

fund

in

the

applicable

Expense

Group.

In

addition,

the

actual

total

expense

ratio

was

shown

for

Advisor

Class

shares

for

the

Franklin

Focused

Growth

Fund

and

for

Class

K6

shares,

Class

I

shares,

Class

N

shares,

Class

P

shares,

Class

Z

shares,

Investor

Class

shares

or

Institutional

Class

shares

for

each

other

fund

in

the

Fund’s

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

Franklin

DynaTech

Fund,

Franklin

Growth

Fund,

Franklin

Income

Fund

and

Franklin

Utilities

Fund

–

The

Expense

Group

for

each

of

the

Franklin

DynaTech

Fund

and

Franklin

Growth

Fund

included

the

respective

Fund

and

13

other

multi-cap

growth

funds.

The

Expense

Group

for

the

Franklin

Income

Fund

included

the

Fund

and

13

other

flexible

portfolio

funds.

The

Expense

Group

for

the

Franklin

Utilities

Fund

included

the

Fund

and

six

other

utility

funds.

The

Board

noted

that

the

Management

Rates

and

actual

total

expense

ratios

for

the

Funds

were

below

the

medians

and

in

the

first

quintile

(least

expensive)

of

their

respective

Expense

Groups.

The

Board

concluded

that

the

Management

Rates

charged

to

the

Funds

are

reasonable.

Franklin

Focused

Growth

Fund

–

The

Expense

Group

for

the

Fund

included

the

Fund

and

15

other

large-cap

growth

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

below

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

actual

total

expense

ratio

for

the

Fund

was

approximately

six

basis

points

above

the

median

of

its

Expense

Group

and

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

U.S.

Government

Securities

Fund

–

The

Expense

Group

for

the

Fund

included

the

Fund,

five

other

Ginnie

Mae

funds,

and

six

US

mortgage

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

less

than

2

basis

points

above

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

actual

total

expense

ratio

for

the

Fund

was

below

the

median

and

in

the

first

quintile

(least

expensive)

of

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

Franklin

Custodian

Funds

Shareholder

Information

146

franklintempleton.com

Semiannual

Report

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2021,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up

front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

a

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Franklin

Focused

Growth

Fund

does

not

have

an

asset

size

that

would

likely

enable

the

Fund

to

achieve

economies

of

scale.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Franklin

Custodian

Funds

Shareholder

Information

147

franklintempleton.com

Semiannual

Report

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FCF

S

05/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

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

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.  N/A

Item 5. Audit Committee

 

of Listed Registrants.  N/A

Item 6. Schedule of Investments.          N/A

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.   N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                         N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers. N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls

. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                             N/A

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN

CUSTODIAN FUNDS

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  May 26, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  May 26, 2022

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  May 26, 2022