Franklin Resources (BEN) fund trails index in Q1 2026

Franklin Equity Income Fund posted a positive return in the first quarter. The performance still trailed the Russell 1000 Value Index, according to Franklin Templeton's quarterly commentary.

US equities had a difficult period. Investors reassessed the durability of the artificial-intelligence trade, and geopolitical risk escalated, the commentary said. Consumer discretionary and health care stocks further pressured the fund's results.

Technology shares came under particular pressure. The commentary cited rising AI-related capital expenditure as a factor spurring uncertainty about earnings sustainability.

The fund's relative underperformance follows a stretch of strong gains in value stocks. The Russell 1000 Value Index held up better than the broader market during the quarter.

Franklin Resources, the parent company operating through Franklin Templeton, manages the fund. The firm had $1.4 trillion in assets under management as of mid-2023, according to its website. The fund's performance relative to its benchmark is one metric observers watch when assessing active management capability.

The broader S&P 500 and other major US indices also declined in the first quarter. The AI-trade reassessment hit high-multiple technology shares, while consumer discretionary and health care sectors struggled with shifting rate expectations and consumer confidence.

The commentary did not disclose specific return figures for the fund or the index. It also did not outline changes to holdings or strategy.

For more on Franklin Resources, see the BEN stock page. For broader market context, read stock market analysis.