Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Franklin Income VIP 1 Release date as of 2024-03-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Morningstar Report Overall Morningstar Rating™ What is this? As of 2024-03-31 Out of 441 Moderately Conservative Allocation Funds Morningstar® Style Box™ What is this? As of 2024-02-29 As of 2023-12-31 Total Fund Assets ($ Mil) 3,178.14 View Historical Morningstar Star Ratings and Definitions

Investment Objective & Strategy   The investment seeks to maximize income while maintaining prospects for capital appreciation. The fund invests in a diversified portfolio of debt and equity securities. It may shift its investments from one asset class to another based on the investment manager's analysis of the best opportunities for the fund's portfolio in a given market. The fund may invest up to 100% of its total assets in debt securities that are rated below investment grade (also known as "junk bonds"), including a portion in defaulted securities. It may also invest up to 25% of its assets in foreign securities, either directly or through depositary receipts.

Morningstar Category: Moderately Conservative Allocation Funds in allocation categories seek to provide both income and capital appreciation by primarily investing in multiple asset classes, including stocks, bonds, and cash. These moderately conservative strategies prioritize preservation of capital over appreciation. They typically expect volatility similar to a strategic equity exposure between 30% and 50%.

Investment Risks There are no additional fund specific investment risks (e.g. liquidity risk, currency risk, foreign investment risk, etc.) associated with this fund beyond the normal risks generally associated with investing in a mutual fund.

Portfolio Profile Asset Allocation % of Net Assets U.S. Stocks 24.2 Non-U.S. Stocks 3.7 Bonds 61.8 Cash 1.6 Other 8.8 Data through 2024-02-29 Morningstar Equity Sectors % of Stocks Cyclical 24.36 Basic Materials 5.42 Consumer Cyclical 3.31 Financial Services 15.63 Real Estate 0.00 Sensitive 41.75 Communication Services 3.16 Energy 12.71 Industrials 11.70 Technology 14.18 Defensive 33.88 Consumer Defensive 9.02 Healthcare 9.87 Utilities 14.99 Data through 2024-02-29 Morningstar Fixed-Income Sectors % Fund Government 15.73 Corporate 81.50 Securitized 0.62 Municipal 0.00 Cash & Equivalents 2.15 Derivative 0.00 Data through 2024-02-29 Credit Analysis % Bonds AAA 0.00 AA 19.09 A 9.63 BBB 34.70 BB 6.65 B 19.72 Below B 9.07 Not Rated 1.13 Data through 2023-12-31 Holding Status Total Number of Stock Holdings 58 Total Number of Bond Holdings 192 % of Net Assets in Top 10 Holdings 16.05 Turnover % (as of 2022-12-31) 64.51 30 Day SEC Yield % 4.58 Top Holdings Sector Country Maturity Date Market Value ($000) % of Net Assets United States Treasury Notes 2.875% --- USA 2032-05-15 117,528 3.80 United States Treasury Notes 2.75% --- USA 2032-08-15 66,971 2.17 Texas Instruments Inc USA --- 60,902 1.97 United States Treasury Notes 4.375% --- USA 2024-10-31 49,720 1.61 Chevron Corp USA --- 45,244 1.46 United States Treasury Bonds 3.625% --- USA 2053-05-15 37,195 1.20 United States Treasury Bonds 3% --- USA 2052-08-15 30,933 1.00 Southern Co USA --- 30,263 0.98 Franklin IFT Money Market --- USA --- 28,961 0.94 B.A.T. Capital Corporation 3.557% --- GBR 2027-08-15 28,374 0.92 Data through 2024-02-29

Principal Risks    Credit and Counterparty, Prepayment (Call), Foreign Securities, Loss of Money, Not FDIC Insured, Value Investing, Active Management, Income, Interest Rate, Market/Market Volatility, Convertible Securities, Depositary Receipts, High-Yield Securities, Industry and Sector Investing, Mortgage-Backed and Asset-Backed Securities, Other, Restricted/Illiquid Securities, Derivatives, Structured Products Show Risk Definitions

Other Information Inception Date: 1989-01-24 Portfolio Manager(s) Edward D. Perks   (2002-03-01) Edward Perks is chief investment officer of Franklin Templeton Investment Solutions and president of Franklin Advisers, Inc. In this role, Mr. Perks has oversight of myriad multi-asset investment capabilities designed to meet client needs for specific investment solutions. Mr. Perks joined Franklin Templeton in 1992. Mr. Perks holds a B.A. in economics and political science from Yale University. He is a Chartered Financial Analyst (CFA) charterholder, a member of the CFA Institute, and the Security Analysts of San Francisco (SASF). Todd Brighton   (2017-03-01) Todd Brighton is a vice president, portfolio manager and research analyst for Franklin Templeton Multi-Asset Solutions. He is the lead manager of the Franklin Liberty US Low Volatility ETF. Mr. Brighton analyzes equity and equity-linked investments for the Core/Hybrid team and specializes in the development of volatility-based strategies. Mr. Brighton joined Franklin Templeton in 2000. He is a Chartered Financial Analyst (CFA) charterholder and a member of the CFA Institute and the CFA Society of San Francisco. Brendan Circle   (2019-02-01) Brendan Circle is a vice president, portfolio manager, and research analyst for Franklin Templeton Multi-Asset Solutions. In this role, Mr. Circle serves as a comanager of Franklin Income Fund and related portfolios, as well as Franklin Managed Income Fund. He also specializes in analyzing investment opportunities across the fixed income markets for the Multi-Asset Solutions team. Mr. Circle joined Franklin Templeton in 2014. Mr. Circle is a Chartered Financial Analyst (CFA) Charterholder, as well as a member of the CFA Institute and the CFA Society of San Francisco. Investment Advisor(s) Franklin Advisers, Inc. Issuer Franklin Templeton Investments Subadvisor(s) ---

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