ismagilov/iStock via Getty Images Key Takeaways • Markets: US equities endured a difficult first quarter of 2026 as investors reassessed the durability of the artificial intelligence ( AI ) trade and as geopolitical risk intensified. Technology-focused shares came under pressure as rising AI-related capital expenditure spurred a rotation away from mega-capitalization growth stocks and toward value...
ismagilov/iStock via Getty Images Key Takeaways • Markets: US equities endured a difficult first quarter of 2026 as investors reassessed the durability of the artificial intelligence ( AI ) trade and as geopolitical risk intensified. Technology-focused shares came under pressure as rising AI-related capital expenditure spurred a rotation away from mega-capitalization growth stocks and toward value stocks. March brought further strain as the Middle East conflict disrupted energy markets, lifting oil prices and adding to inflation risk. • Contributors: Allocations to both the fixed income and equity sides of the portfolio contributed to the fund's absolute returns, while selection among fixed income holdings assisted relative results. • Detractors: Stock selection detracted from relative equity performance. • Outlook: We remain vigilant amid ongoing uncertainties, selectively deploying capital during periods of market dislocation to enhance income and long-term total return potential. Having reduced fixed income exposure earlier in the year in favor of equity opportunities, we are now selectively increasing bond allocations as higher yields and wider spreads improve their relative attractiveness to us. Performance Review • Franklin Income Fund (Advisor Class shares without sales charges) outperformed its benchmark , the Blended 50% MSCI USA High Dividend Yield Index + 25% Bloomberg High Yield Very Liquid Index + 25% Bloomberg US Aggregate Index, for the quarter ended March 31, 2026. • Over the course of the quarter, the fund decreased its fixed income allocation and increased its equity exposure . • Fixed income allocations to the energy, health care and communication services sectors had a positive effect on absolute fund performance. Meanwhile, financials, consumer discretionary and industrials securities hindered results during the period. • On an individual issuer basis, Venture Global Partners II, Community Health Systems (CHS) and Tronox Holdings ( TROX ) were l...
Following the first confirmation of screwworm, a flesh-eating parasite, on a US farm in decades, federal and state officials have fanned out in South Texas, where a calf was found infested this week. US Agriculture Secretary Brooke Rollins said on Thursday no other infestations of cattle or other animals have been detected around the confirmed case. The case in La Pryor, Texas, was a blow to US c...
Following the first confirmation of screwworm, a flesh-eating parasite, on a US farm in decades, federal and state officials have fanned out in South Texas, where a calf was found infested this week. US Agriculture Secretary Brooke Rollins said on Thursday no other infestations of cattle or other animals have been detected around the confirmed case. The case in La Pryor, Texas, was a blow to US cattle ranchers who have been bracing for a domestic outbreak of New World screwworm as the fly...
A revision to Malaysia’s public university admissions rules has reopened one of the multicultural country’s most sensitive political debates: how far its national education system should accommodate Chinese-language schooling. Malaysia’s government on May 15 said students from Chinese independent secondary schools could apply to public universities through specified pathways using the Unified Exam...
A revision to Malaysia’s public university admissions rules has reopened one of the multicultural country’s most sensitive political debates: how far its national education system should accommodate Chinese-language schooling. Malaysia’s government on May 15 said students from Chinese independent secondary schools could apply to public universities through specified pathways using the Unified Examination Certificate (UEC), the school-leaving qualification used by those institutions. The decision...