Franklin Total Return Fund

This annual shareholder report contains important information about Franklin Total Return Fund for the period November 1, 2023, to October 31, 2024. You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

This report describes changes to the Fund that occurred during the reporting period.

What were the Fund costs for the last year? (based on a hypothetical $10,000 investment)

Class Name

Advisor Class

Costs of a $10,000 investment

$61

Costs paid as a percentage of a $10,000 investment*

0.58%

* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

How did the fund perform last year and what affected its performance?

For the twelve months ended October 31, 2024, Advisor Class shares of Franklin Total Return Fund returned 11.19%. The Fund compares its performance to the Bloomberg U.S. Aggregate Index, which returned 10.55% for the same period.

Performance Highlights

Top contributors to performance:

  • Exposure to investment-grade corporate bonds and senior secured floating-rate bank loan as well as overweight allocation to high-yield (HY) corporate bonds and collateralized loan obligations.
  • Overweight allocation to agency mortgage-backed securities (MBS), non-agency residential mortgage-backed securities and commercial mortgage-backed securities (CMBS).
  • Exposure to taxable municipal bonds and sovereign emerging-market debt.

Top detractors from performance:

  • Security selection in MBS and CMBS.
  • Security selection in HY corporate bonds.

How did the fund perform over the last 10 years?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Value of A $10,000 Investment – ADVISOR CLASS  (10/31/2014 — 10/31/2024)

Franklin Total Return Fund Advisor Class: $11,306

Bloomberg U.S. Aggregate Index: $11,592

Average annual total returns (%)   ( period ended October 31, 2024)

  ( period ended October 31, 2024)
1 year 5 year 10 year
Advisor Class 11.19 -0.17 1.24
Bloomberg U.S. Aggregate Index 10.55 -0.23 1.49

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.

Key fund statistics  (as of October 31,2024)

  (as of October 31,2024)
Key Facts
Total Net Assets $3,153,658,403
Total Number of Portfolio Holdings* 730
Total Management Fee Paid $12,522,070
Portfolio Turnover Rate 204.24%

* Does not include derivatives, except purchased options, if any.

What did the fund invest in?  (as of October 31,2024)

(as of October 31,2024)

Portfolio Composition *,† (% of Total Investments)

*   Does not include derivatives, except purchased options, if any
†  Certain categories may represent less than 0.1%.
*   Does not include derivatives, except purchased options, if any
†  Certain categories may represent less than 0.1%.

How has the Fund changed?

Effective March 1, 2024, the Fund added disclosure to its prospectus to clarify that the Fund may, at times, have significant exposure to treasury futures.

Additionally, effective September 30, 2024, Michael V. Salm was added as a portfolio manager to the Fund.

This is a summary of certain changes to the Fund since November 1, 2023. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by March 1, 2025, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus@franklintempleton.com.

Where can I find additional information about the fund?

Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:

  • Prospectus
  • Proxy voting information
  • Financial information
  • Holdings
  • Tax information

Householding

You will receive the Fund’s shareholder 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 sendonly one copy of the shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, youmay receive these documents through electronic delivery.