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Managed Fund Since 2016
Multi-Asset
FROTX Franklin Convertible Securities Fund
- 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.
Popular Documents
Total Net Assets
$3.00B
As of 09/30/2026 (Updated Monthly)
Overview
Fund Facts
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 (and common stock received upon conversion of convertible securities). Convertible securities are debt securities or preferred stocks that may be converted into common stocks.
- Benchmark
- ICE BofA Convertibles Total Return Alternatives Index
- Dividend Frequency, if any
- Quarterly
- Fund Inception Date
- 04/15/1987
Identifiers
- Ticker
- FROTX
- Fund Number
- 237
- CUSIP Code
- 353612880
Average Annual Total Returns As of 09/30/2026
Class C
- 10.13%1 Year
- 14.43%3 Years
- 5.09%5 Years
- 11.25%10 Years
- 8.67%Since Inception
10/02/1995
Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.
Top Sectors
As of 09/30/2026 % of Total (Updated Monthly)
Information Technology25.27% | |
Health Care16.48% | |
Industrials9.96% | |
Utilities9.66% | |
Consumer Discretionary9.07% |
Additional Fund Info
- Share Class Inception Date
- 10/02/1995
- Investment Style
- Convertibles
- Lipper Classification
- Convertible Securities Funds
- Morningstar Category
9 - Convertibles
Manager and Commentary
About the Team
Franklin Equity understands innovation from every angle—our decades of experience investing in complex change fuels a differentiated perspective on how public and private companies accelerate growth and unlock value. Leveraging fundamental depth and quantitative precision, we identify catalysts for transformation that reshape companies and industries. Our expertise, spanning from growth to value, brings together diverse perspectives that help us spot opportunities ahead of the market.
Commentary Highlights
September 30, 2026- Convertible Securities Market: As weakness in AI-related securities reversed some of the strong gains that had driven performance during the first half of 2026, the US and global convertible bond (CB) markets generally declined in the third quarter (as measured by ICE BofA indexes in US dollar terms). Performance within the CB asset class varied as global equity-sensitive convertibles (-11.6%) fared worse than balanced CBs (-5.5%) and “busted” (credit-/rate-sensitive) convertibles (-1.1%) in 3Q26. Year-to-date, global CBs have returned 12.1% (and 13.6% in the US alone), comparable to global stocks and ahead of corporate and sovereign debt. CB primary issuance in September totaled $26.9 billion globally (led by the US’s nearly $14 billion, and Asia’s nearly $9 billion), capping a record total for 3Q26 (over $66 billion). The new supply came from a diverse set of industries ranging from AI to cybersecurity to biotechnology. Year-to-date issuance now totals $203.8 billion and has already surpassed 2025’s previous record-high annual level ($167 billion).
- Contributors: Modest absolute gains in the financials, consumer staples, health care and materials sectors; when combined, these holdings covered about 30% of the portfolio (on average).
- Detractors: Negative returns for seven out of 11 sector allocations, with most of the loss concentrated in information technology (IT), industrials, consumer discretionary and utilities holdings.
- Outlook: While AI-related convertible issuance could moderate somewhat amid continued market volatility, we remain constructive on the outlook for the convertible securities market, supported by record issuance and favorable refinancing dynamics, according to our analysis. In particular, we would welcome greater diversification in new issuance across sectors such as health care, industrials, consumer and energy, which would broaden our investment opportunity set and support the long-term development of the asset class.
Franklin Equity
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Managed Fund Since 2025
Latest Insights
October 22, 2026
October 21, 2026
October 12, 2026
September 30, 2026
Performance
Average Annual Total Returns
As of 09/30/2026
Selected Month September 2026
Class C - With Sales Charge (POP) (%)
Month End
As of 09/30/2026
- 1 Year
- 10.13
- 3 Years
- 14.43
- 5 Years
- 5.09
- 10 Years
- 11.25
- Since Inception(10/02/1995)
- 8.67
Class C - Without Sales Charge (NAV) (%)
Month End
As of 09/30/2026
- 1 Year
- 11.13
- 3 Years
- 14.43
- 5 Years
- 5.09
- 10 Years
- 11.25
- Since Inception(10/02/1995)
- 8.67
ICE BofA Convertibles Total Return Alternatives Index (%)
Month End
As of 09/30/2026
- 1 Year
- 2.77
- 3 Years
- 12.76
- 5 Years
- 2.58
- 10 Years
- 9.39
- Since Inception(10/02/1995)
- —
Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.
Ratings 3
©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Portfolio
Assets
As of09/30/2026 (Updated Monthly)
- Total Net Assets
- $3.00 Billion
Positions
As of 09/30/2026 (Updated Monthly)
Number of Issuers
- Fund
- 69
Portfolio Statistics
As of 09/30/2026 (Updated Monthly)
Price to Earnings (12-Month Trailing) 10
- Fund
- 22.20x
- Fund
- 13.40x
- Fund
- 2.65x
- Fund
- 0.77 Years
- Fund
- 0.02%
- Fund
- 27.92
- Fund
- 0.28
Asset Allocation
As of 09/30/2026 % of Total (Updated Monthly)
| Holdings | Fund |
|---|---|
Convertibles | 98.33% |
Cash & Cash Equivalents | 1.67% |
Holdings
As of 09/30/2026 (Updated Monthly)
Hewlett Packard Enterprise Co
Welltower OP LLC 3.125% 07/15/2029 CNV 144A
MACOM Technology Solutions Holdings Inc ZERO 12/15/2029 CNV
Franklin Institutional US Government Money Market Fund
MKS Inc 1.25% 06/01/2030 CNV 144A
Bruker Corp
Bridgebio Pharma Inc 1.75% 03/01/2031 CNV
QXO Inc
Burlington Stores Inc 1.25% 12/15/2027 CNV
LYFT INC .625% 03/01/2029 CNV
Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.
Distributions & Tax
- Distribution Frequency
- QuarterlyThis fund is an ex-Dividend fund
- Capital Gain Distributions
- December
Rates and Yields
Distribution Rate
At Net Asset Value (NAV) 0.98%
Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.
Distributions Per Share
12/18/2026
09/18/2026
06/18/2026
03/19/2026
Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.
The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.
Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.
Pricing
Documents
Fund Literature
Factsheet - Franklin Convertible Securities Fund
Product Commentary - Franklin Convertible Securities Fund
Regulatory Documents
Annual Report - Franklin Convertible Securities Fund - Class C
Annual Financial Statements And Other Information - Franklin Investors securities Trust
Semi-Annual Report - Franklin Convertible Securities Fund - Class C
Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust
Prospectus - Franklin Investors Securities Trust #1
Summary Prospectus - Franklin Convertible Securities Fund
Statement of Additional Information - Franklin Investors Securities Trust #1
Fiscal Q1 Holdings - Franklin Investors Securities Trust Funds
Fiscal Q3 Holdings - Franklin Investors Securities Trust Funds
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 and debt securities when the underlying stock price is low relative to the conversion price. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Unrated debt securities have less public information and independent credit analysis and they may be subject to a greater risk of illiquidity, price changes or default. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.
Important Information
Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.
Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.
Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.
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Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.
Important data provider notices and terms available at www.franklintempletondatasources.com.
Performance data quoted represents past performance, which does not guarantee future results.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.
The ICE BofA All Alternatives U.S. Convertibles Index comprises domestic securities of all quality grades that are convertible into U.S. dollar-denominated common stock, ADRs or cash equivalents and have a delta (measure of equity sensitivity) that indicates the security likely has a balance between the debt and equity characteristics of the security.
Source: The index data referenced herein is the property of Intercontinental Exchange ("ICE") and/or its licensors and has been licensed for use by Franklin Templeton. ICE and its licensors accept no liability in connection with this use.
All Putnam-named funds and Franklin Retirement Advantage, Franklin Dynamic Asset Allocation, and Franklin Multi-Asset Income-named funds and Royce funds are not exchangeable for other funds distributed by Franklin Distributors, LLC.