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      <regStreet1>One Franklin Parkway</regStreet1>
      <regCity>San Mateo</regCity>
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      <regZipOrPostalCode>94403-1906</regZipOrPostalCode>
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      <seriesName>Franklin Equity Income Fund</seriesName>
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      <invstOrSec>
        <name>RAYTHEON CO NEW COM NPV</name>
        <lei>YR6K3WJN0KKLUPZSNL57</lei>
        <title>RAYTHEON CO NEW COM NPV</title>
        <cusip>755111507</cusip>
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          <ticker value="RTN"/>
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        <assetCat>EC</assetCat>
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        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      <invstOrSec>
        <name>UNILEVER NV COM NY REGD NLG1</name>
        <lei>549300TK7G7NZTVM1Z30</lei>
        <title>UNILEVER NV COM NY REGD NLG1</title>
        <cusip>904784709</cusip>
        <identifiers>
          <ticker value="UN"/>
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        <balance>475000.00000000</balance>
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        <assetCat>EC</assetCat>
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        <invCountry>NL</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      <invstOrSec>
        <name>XCEL ENERGY INC COM USD2.5</name>
        <lei>LGJNMI9GH8XIDG5RCM61</lei>
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        <cusip>98389B100</cusip>
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          <ticker value="XEL"/>
          <other otherDesc="Internal Identifier" value="911"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      <invstOrSec>
        <name>OCCIDENTAL PETROLEUM CORP COM USD.2</name>
        <lei>IM7X0T3ECJW4C1T7ON55</lei>
        <title>OCCIDENTAL PETROLEUM CORP COM USD.2</title>
        <cusip>674599105</cusip>
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          <ticker value="OXY"/>
          <other otherDesc="Internal Identifier" value="18979"/>
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        <balance>255000.00000000</balance>
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        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      <invstOrSec>
        <name>ROYAL DUTCH SHELL PLC SPONSORED ADR A</name>
        <lei>21380068P1DRHMJ8KU70</lei>
        <title>ROYAL DUTCH SHELL PLC SPONSORED ADR A</title>
        <cusip>780259206</cusip>
        <identifiers>
          <ticker value="RDS/A"/>
          <other otherDesc="Internal Identifier" value="339933"/>
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        <balance>635000.00000000</balance>
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        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>GB</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      <invstOrSec>
        <name>Danaher Corp 4.75% CNV PFD A *DHR PA*</name>
        <lei>S4BKK9OTCEWQ3YHPFM11</lei>
        <title>Danaher Corp 4.75% CNV PFD A *DHR PA*</title>
        <cusip>235851300</cusip>
        <identifiers>
          <ticker value="DHR"/>
          <other otherDesc="Internal Identifier" value="965748"/>
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        <balance>15000.00000000</balance>
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        <curCd>USD</curCd>
        <valUSD>18317100.00000000</valUSD>
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        <payoffProfile>Long</payoffProfile>
        <assetCat>EP</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>PEPSICO INC COM USD.017</name>
        <lei>FJSUNZKFNQ5YPJ5OT455</lei>
        <title>PEPSICO INC COM USD.017</title>
        <cusip>713448108</cusip>
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          <other otherDesc="Internal Identifier" value="6887"/>
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        <balance>415000.00000000</balance>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>HCA HEALTHCARE INC COM USD .01</name>
        <lei>529900PH4ZGUH2MNEU89</lei>
        <title>HCA HEALTHCARE INC COM USD .01</title>
        <cusip>40412C101</cusip>
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          <ticker value="HCA"/>
          <other otherDesc="Internal Identifier" value="488690"/>
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        <balance>135000.00000000</balance>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>TELUS CORP ORD CAD NPV</name>
        <lei>L2TEUTQ8OSHMJWVLCE40</lei>
        <title>TELUS CORP ORD CAD NPV</title>
        <cusip>87971M103</cusip>
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          <ticker value="T"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>CA</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      <invstOrSec>
        <name>ARTHUR J GALLAGHER &amp; CO COM USD1</name>
        <lei>54930049QLLMPART6V29</lei>
        <title>ARTHUR J GALLAGHER &amp; CO COM USD1</title>
        <cusip>363576109</cusip>
        <identifiers>
          <ticker value="AJG"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>WALMART INC COM USD0.1</name>
        <lei>Y87794H0US1R65VBXU25</lei>
        <title>WALMART INC COM USD0.1</title>
        <cusip>931142103</cusip>
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        <curCd>USD</curCd>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>MERCK &amp; CO INC COM USD.5</name>
        <lei>4YV9Y5M8S0BRK1RP0397</lei>
        <title>MERCK &amp; CO INC COM USD.5</title>
        <cusip>58933Y105</cusip>
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          <ticker value="MRK"/>
          <other otherDesc="Internal Identifier" value="2049"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>Broadcom Inc 8% CNV PFD a *AVGOP*</name>
        <lei>549300WV6GIDOZJTV909</lei>
        <title>Broadcom Inc 8% CNV PFD a *AVGOP*</title>
        <cusip>11135F200</cusip>
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          <ticker value="AVGO"/>
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        <assetCat>EP</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>JPMORGAN CHASE &amp; CO COM USD1</name>
        <lei>8I5DZWZKVSZI1NUHU748</lei>
        <title>JPMORGAN CHASE &amp; CO COM USD1</title>
        <cusip>46625H100</cusip>
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          <other otherDesc="Internal Identifier" value="344"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>TARGET CORP COM USD.0833</name>
        <lei>8WDDFXB5T1Z6J0XC1L66</lei>
        <title>TARGET CORP COM USD.0833</title>
        <cusip>87612E106</cusip>
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          <ticker value="TGT"/>
          <other otherDesc="Internal Identifier" value="434"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      <invstOrSec>
        <name>Essential Utilities Inc 6% CNV PFD *WTRU*</name>
        <lei>549300ILTEOF3E3QY357</lei>
        <title>Essential Utilities Inc 6% CNV PFD *WTRU*</title>
        <cusip>03836W202</cusip>
        <identifiers>
          <ticker value="WTR"/>
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        <assetCat>EP</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>CISCO SYSTEMS INC COM USD NPV</name>
        <lei>8E6NF1YAL0WT6CWXXV93</lei>
        <title>CISCO SYSTEMS INC COM USD NPV</title>
        <cusip>17275R102</cusip>
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          <ticker value="CSCO"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>UNITED TECHNOLOGIES CORP COM USD1</name>
        <lei>I07WOS4YJ0N7YRFE7309</lei>
        <title>UNITED TECHNOLOGIES CORP COM USD1</title>
        <cusip>913017109</cusip>
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          <ticker value="UTX"/>
          <other otherDesc="Internal Identifier" value="4842"/>
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        <assetCat>EC</assetCat>
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        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>METLIFE INC COM USD.01</name>
        <lei>C4BXATY60WC6XEOZDX54</lei>
        <title>METLIFE INC COM USD.01</title>
        <cusip>59156R108</cusip>
        <identifiers>
          <ticker value="MET"/>
          <other otherDesc="Internal Identifier" value="185823"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>CHEVRON CORP COM USD.75</name>
        <lei>N/A</lei>
        <title>CHEVRON CORP COM USD.75</title>
        <cusip>166764100</cusip>
        <identifiers>
          <ticker value="CVX"/>
          <other otherDesc="Internal Identifier" value="14093"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>TEXAS INSTRUMENTS INC COM USD1</name>
        <lei>WDJNR2L6D8RWOEB8T652</lei>
        <title>TEXAS INSTRUMENTS INC COM USD1</title>
        <cusip>882508104</cusip>
        <identifiers>
          <ticker value="TXN"/>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>JOHNSON &amp; JOHNSON COM USD1</name>
        <lei>549300G0CFPGEF6X2043</lei>
        <title>JOHNSON &amp; JOHNSON COM USD1</title>
        <cusip>478160104</cusip>
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          <ticker value="JNJ"/>
          <other otherDesc="Internal Identifier" value="726"/>
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        <balance>425000.00000000</balance>
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        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>LOWE'S COMPANIES INC COM USD.5</name>
        <lei>WAFCR4OKGSC504WU3E95</lei>
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        <lei>UWJKFUJFZ02DKWI3RY53</lei>
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        <name>MEDTRONIC PLC ORD USD.1</name>
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        <isRestrictedSec>N</isRestrictedSec>

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        <name>DuPont de Nemours Inc COM USD 0.01</name>
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        <name>TRACTOR SUPPLY CO COM USD.008</name>
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        <name>LOW 7.00% ELN ISSUED BY Royal Bank of Canada LOW 7.00% ELN 10/09/2020</name>
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        <name>TSCO 6.00% ELN ISSUED BY Royal Bank of Canada 6.00% ELN 12/11/2020</name>
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        <name>CITIGROUP INC COM USD0.01</name>
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        <name>ORCL 6.50% ELN ISSUED BY BARCLAYS BANK PLC ORCL 6.50% ELN 01/22/2021</name>
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        <name>HCA 6.00% ELN ISSUED BY GOLDMAN SACHS INTERNATIONAL HCA 6.00% ELN 12/23/2020</name>
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      </invstOrSec>
      <invstOrSec>
        <name>BECTON DICKINSON AND CO 6.125% CNV PFD SER A *BDXA*</name>
        <lei>ICE2EP6D98PQUILVRZ91</lei>
        <title>BECTON DICKINSON AND CO 6.125% CNV PFD SER A *BDXA*</title>
        <cusip>075887208</cusip>
        <identifiers>
          <ticker value="BDX"/>
          <other otherDesc="Internal Identifier" value="665829"/>
        </identifiers>
        <balance>735000.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>48179250.00000000</valUSD>
        <pctVal>1.826480355837</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EP</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>ORACLE CORP COM USD0.01</name>
        <lei>1Z4GXXU7ZHVWFCD8TV52</lei>
        <title>ORACLE CORP COM USD0.01</title>
        <cusip>68389X105</cusip>
        <identifiers>
          <ticker value="ORCL"/>
          <other otherDesc="Internal Identifier" value="25597"/>
        </identifiers>
        <balance>107200.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>5622640.00000000</valUSD>
        <pctVal>0.213154864551</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>NEXTERA ENERGY INC COM USD.01</name>
        <lei>N/A</lei>
        <title>NEXTERA ENERGY INC COM USD.01</title>
        <cusip>65339F101</cusip>
        <identifiers>
          <ticker value="NEE"/>
          <other otherDesc="Internal Identifier" value="546"/>
        </identifiers>
        <balance>255300.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>68471460.00000000</valUSD>
        <pctVal>2.595760137932</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>EMERSON ELECTRIC CO COM USD1</name>
        <lei>FGLT0EWZSUIRRITFOA30</lei>
        <title>EMERSON ELECTRIC CO COM USD1</title>
        <cusip>291011104</cusip>
        <identifiers>
          <ticker value="EMR"/>
          <other otherDesc="Internal Identifier" value="26548"/>
        </identifiers>
        <balance>416000.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>29798080.00000000</valUSD>
        <pctVal>1.129648298005</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>ONEOK INC COM USD.01</name>
        <lei>2T3D6M0JSY48PSZI1Q41</lei>
        <title>ONEOK INC COM USD.01</title>
        <cusip>682680103</cusip>
        <identifiers>
          <ticker value="OKE"/>
          <other otherDesc="Internal Identifier" value="5043"/>
        </identifiers>
        <balance>250000.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>18717500.00000000</valUSD>
        <pctVal>0.709582362954</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>OXY 8.0% ELN Issued by Citigroup Global Markets Holdings Inc 8.0% ELN 3/3/2020</name>
        <lei>82VOJDD5PTRDMVVMGV31</lei>
        <title>OXY 8.0% ELN Issued by Citigroup Global Markets Holdings Inc 8.0% ELN 3/3/2020</title>
        <cusip>17326W183</cusip>
        <identifiers>
          <other otherDesc="Internal Identifier" value="964528"/>
        </identifiers>
        <balance>250000.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>14279052.50000000</valUSD>
        <pctVal>0.541320358685</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EP</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>2</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>MICROSOFT CORP COM USD0.001</name>
        <lei>INR2EJN1ERAN0W5ZP974</lei>
        <title>MICROSOFT CORP COM USD0.001</title>
        <cusip>594918104</cusip>
        <identifiers>
          <ticker value="MSFT"/>
          <other otherDesc="Internal Identifier" value="853"/>
        </identifiers>
        <balance>487500.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>82987125.00000000</valUSD>
        <pctVal>3.146050500991</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
    </invstOrSecs>
    <explntrNotes>
      <explntrNote note="Monthly returns presented in Item B.5(a) have been calculated without deducting any applicable sales loads or redemption fees." noteItem="B.5.a"/>
    </explntrNotes>
    <signature>
      <ncom:dateSigned>2020-02-29</ncom:dateSigned>
      <ncom:nameOfApplicant>Robert Kubilis</ncom:nameOfApplicant>
      <ncom:signature>Robert Kubilis</ncom:signature>
      <ncom:signerName>Robert Kubilis</ncom:signerName>
      <ncom:title>Chief Financial Officer, Chief Accounting Officer and Treasurer</ncom:title>
    </signature>
  </formData>
  <documents>XXXX</documents>
</edgarSubmission>
