United States
[alert-heading]
-
Beginning on 10/19/18, Class C shares held for 10 years or more will automatically convert to Class A shares. Thereafter, Class C shares held for 10 years or more will automatically convert to Class A shares on a monthly basis. This conversion allows shareholders to take advantage of the lower expenses offered by Class A shares. Please see the prospectus supplement for more information. If you have any questions, please contact your financial advisor or call Franklin Templeton.
-
Effective 9/10/18, certain sales charges and commissions paid to dealers on Class A and A1 shares of our mutual funds changed. Please see the prospectus supplement for more information. If you have additional questions, please contact your financial advisor or call Franklin Templeton.
-
Franklin Convertible Securities Fund closed to new investors with limited exceptions on August 29, 2018. Existing investors may continue to purchase additional shares of the fund. For more information, please contact your financial advisor or Shareholder Services.
This fund or share class has been closed to new investors.
Fund Description
The fund seeks to maximize total return, consistent with reasonable risk, by investing at least 80% of its net assets in convertible securities. Convertible securities are bonds or preferred stock that may be converted into common stock.
Strategy Statement
"We believe convertible securities are attractive because they offer the growth potential of stocks with the potential for high current income and less downside risk generally offered by bonds."
Management
Alan Muschott, CFAμ13219
- Joined Franklin Templeton in 1998
- Managed Fund Since 2002
Matt Quinlan
- Joined Franklin Templeton in 2005
- Managed Fund Since 2007
Eric Webster, CFAμ124141
- Joined Franklin Templeton in 2011
- Managed Fund Since 2016
Rating
Overall Morningstar Rating As of 01/31/2020
Rating Category: Convertibles
Morningstar Style Box As of12/31/2019
Table Legend
- Current
- Historical
| Historical Style | Large | Size | ||
|---|---|---|---|---|
| Historical Style | Historical Style | Medium | ||
| Historical Style | Current Style | Historical Style | Small | |
| Value | Blend | Growth | ||
| Style | ||||
Strategy, Benefits, Results
Strategy
- Identify Imbalances in Price. We seek to identify quality companies selling at inexpensive prices relative to their intrinsic values.
- Find the Upside Potential. We typically look for "balanced" convertible securities that we believe offer an attractive risk/reward profile.
- Rely on Sound Analysis. We assess individual issuers and security terms on a case-by-case basis, utilizing the equity and credit analyses produced by our experienced team.
Benefits
- Allows investors to participate in the upside potential of the underlying common stock with potentially less downside risk due to its fixed-income characteristics.
- Experienced management team with over 36 years of combined industry experience.
- Broad diversification spread across multiple industries.
Investing In The Fund
What Are the Risks?
- All investments involve risks, including possible loss of principal.
- Convertible securities are subject to the risks of stocks when the underlying stock price is high relative to the conversion price (because more of the security’s value resides in the conversion feature) and debt securities when the underlying stock price is low relative to the conversion price (because the conversion feature is less valuable).
- A convertible security is not as sensitive to interest rate changes as a similar non-convertible debt security, and generally has less potential for gain or loss than the underlying stock.
- The fund may invest in high-yielding, fixed income securities. High yields reflect the higher credit risk associated with these lower-rated securities and, in some cases, the lower market prices for these instruments.
- Interest-rate movements may affect the fund’s share price and yield.
- Bond prices generally move in the opposite direction of interest rates
- As the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
- The fund may also invest in foreign securities, which involve special risks, including political uncertainty and currency volatility.
- These and other risks are described more fully in the fund’s prospectus.
Minimum Investment
How Financial Advisors Help You
Speak to your advisor about whether this fund is appropriate for you.
Learn more from FINRA about How to Find and Work with an Investment Professional.
Footnotes
You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.
Franklin Templeton Distributors, Inc.
