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.

Overview

See the risks and other important information.

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
30-Day SEC Yield—With Waiver^4,5,6As of 11/30/2025 (Updated Monthly): 0.46%
30-Day SEC Yield—Without Waiver^4,6As of 11/30/2025 (Updated Monthly): 0.45%
Fund Inception Date: 04/15/1987

Sales Charges, Expenses & Fees

As of 03/01/2025

Gross Expense Ratio⁷: 1.59%
Net Expense Ratio^7,8: 1.58%
Maximum Initial Charge: N/A
CDSC⁹: 1.00%
12b-1 Fee: 1.00%

Identifiers

Ticker: FROTX
Fund Number: 237
CUSIP Code: 353612880

Average Annual Total Returns As of 11/30/2025

View performance section for additional info As of 11/30/2025

Class C

With Sales Charge (POP)

Without Sales Charge (NAV)

8.32%1 Year
11.76%3 Years
5.72%5 Years
11.15%10 Years
8.65%Since Inception
10/02/1995

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

As of 11/30/2025 % of Total (Updated Monthly)

Top Sectors
Information Technology22.07%
Health Care17.67%
Consumer Discretionary14.23%
Financials10.07%
Industrials8.54%

Additional Fund Info

Share Class Inception Date: 10/02/1995
Investment Style: Convertibles
Lipper Classification: Convertible Securities Funds
Morningstar Category³: Convertibles

Manager and Commentary

About the Team

Franklin Equity Group

Growth equity managers with a focus on in-depth fundamental research, we offer expertise in managing global, U.S. and sector-specific strategies across the market capitalization spectrum. Our center of gravity in Silicon Valley allows us to follow companies across their private to public life cycles, developing deeper insights into future industry trends and identifying potential disruptors.

Commentary Highlights

September 30, 2025

Convertible Securities Market: US and global convertible bonds (CBs) staged a broad-based advance and collectively returned 9.1% in 2025’s third quarter (3Q25), as measured by ICE BofA indexes in US-dollar terms. Performance within the asset class varied during the quarter, as US-based equity-sensitive convertibles (+11.5%) outperformed both balanced convertibles (+10.4%) and “busted” (credit-/rate-sensitive) convertibles (+5.1%). Year-to-date, global CBs have now returned 18.5% outright. On a global cross-asset basis, convertibles remain one of the leading asset classes year-to-date, largely ahead of non-convertible corporate and sovereign debt, and closely tracking global equities.
Contributors: Widespread and notably large gains in the consumer discretionary and materials sectors, adding to the support from positions in the information technology (IT), health care, real estate and other sectors.
Detractors: Overall declines in the consumer staples, financials and industrials sectors.
Outlook: Along with signs of decelerating global economic growth, the key risks we are monitoring include those associated with inflation and interest rates, tariffs and trade negotiations, and wars. We believe the US Federal Reserve has made good progress in bringing US inflation back down toward its target level, but that progress seems to have stalled recently

For complete information, please see the full commentary:

Franklin Equity Group

Managed Fund Since 2002

Managed Fund Since 2016

Latest Insights

November 27, 2025

2026: The year innovation becomes the economy

October 13, 2025

Colossal Tech: How AI capex is shaping the economy

October 6, 2025

From fast follower to fast leader: My journey into China’s biotech boom

October 1, 2025

Physical AI is about to reshape our world

Performance

Risk Measures

As of 11/30/2025

Class C - Without Sales Charge (NAV)

Measured against: ICE BofA Convertibles Total Return Alternatives Index

Statistics

Beta

Bull Bear Capture Ratio

Beta Bear

Beta Bull

Historical Tracking Error

Information Ratio

Standard Deviation (%)

Class C

ICE BofA Convertibles Total Return Alternatives Index

Sharpe Ratio (%)

Class C

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.

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 4 out of 5 stars
As of 11/30/2025

3 Years: 3 Years: 3 out of 5 stars
72 Funds in category

5 Years: 5 Years: 4 out of 5 stars
70 Funds in category

10 Years: 10 Years: 4 out of 5 stars
62 Funds in category

Rating Category: Convertibles

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Morningstar Style Box

As of 11/30/2025

Current Historical
			Large
			Medium
			Small
Value	Blend	Growth
Style

Size

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2025 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 of10/31/2025 (Updated Monthly)

Total Net Assets: $3.03 Billion

Positions

As of 10/31/2025 (Updated Monthly)

Number of Issuers

Fund: 66

Portfolio Statistics

As of 10/31/2025 (Updated Monthly)

Effective Duration

Fund: 0.86 Years

Premium

Fund: 34.87

Price to Cash Flow

Fund: 12.30x

Gamma

Fund: 0.39

Price to Book

Fund: 2.57x

Yield to Maturity ¹⁰
Yield to Maturity (‘YTM’) also known as the ‘Gross Redemption Yield’ or ‘Redemption Yield’. The rate of return anticipated on a bond if it is held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupons are reinvested at the same rate.

Fund: -0.37%

Price to Earnings (12-Month Trailing)

Fund: 17.74x

Asset Allocation

As of 11/30/2025 % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Convertibles	97.81%
Equity	0.34%
Fixed Income	0.17%
Cash & Cash Equivalents	1.68%

Holdings
As of 10/31/2025 (Updated Monthly)

Wayfair Inc 3.25% 09/15/2027 CNV

CLOUDFLARE INC ZERO 08/15/2026 CNV

Snowflake Inc ZERO 10/01/2029 CNV 144A

Welltower OP LLC 3.125% 07/15/2029 CNV 144A

Bridgebio Pharma Inc 1.75% 03/01/2031 CNV 144A

Hewlett Packard Enterprise Co 7.625% CNV PFD

LYFT INC .625% 03/01/2029 CNV

PTC Therapeutics Inc 1.5% 09/15/2026 CNV

Alibaba Group Holding Ltd .5% 06/01/2031 CNV

Coinbase Global Inc ZERO 10/01/2032 CNV 144A

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

Federal ID Number 94-6600097

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Record Date	Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
Mar 19	0.0019	0.000261	—	—	—	—	—	—	—
Jun 18	0.0144	0.00198	—	—	—	—	—	—	—
Sep 19	0.0348	0.004785	—	—	—	—	—	—	—
Dec 19	0.1945	0.026744	0.5534	—	—	—	—	—	—
	0.2456	0.03377	0.5534	—	—	—	—	—	—

Mar 19

Jun 18

Sep 19

Dec 19

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: —
Specified Private Activity Bond Interest: —
Dividends Received Deduction: 13.75%
Section 163(j): 47.08%
Indiana Resident Taxable Income: —
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: —

Franklin Templeton and its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 12/09/2025 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 12/09/2025

Share Prices

As of 12/09/2025

NAV ¹(Net Asset Value): $25.24
NAV Change ¹: $0.04
NAV Change (%) ¹: 0.16%
POP ¹²(Public Offering Price): $25.24

52-Week Range

Highest NAV As of 12/09/2025: $25.24
Lowest NAV As of 04/08/2025: $20.29

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download	Add to Cart
Checkbox	Factsheet - Franklin Convertible Securities Fund	Download Document
Checkbox	Product Commentary - Franklin Convertible Securities Fund	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Convertible Securities Fund - Class C	Download Document
Checkbox	Annual Financial Statements and Other Information - Franklin Investors Securities Trust #1	Download Document
Checkbox	Semi-Annual Report - Franklin Convertible Securities Fund Class C	Download Document
Checkbox	Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust	Download Document
Checkbox	Prospectus - Franklin Investors Securities Trust #1	Download Document
Checkbox	Summary Prospectus - Franklin Convertible Securities Fund	Download Document
Checkbox	Statement of Additional Information - Franklin Investors Securities Trust #1Mailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin Investors Securities Trust FundsMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin Investors Securities Trust FundsMailed hardcopies unavailable.	Download Document

View Proxy Voting Records and Proxy Voting Policies

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. 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

Click here for funds sales charge and breakpoint information.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

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.

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.

You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.

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.

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.

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.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
A 1% contingent deferred sales charge (CDSC) may apply to shares redeemed within 12 months.
Yield to Maturity is calculated without the deduction of fees and expenses.
Distribution Rate is calculated by annualizing the most recent distribution amount paid, divided by the NAV as of the date indicated. The Distribution Rate calculation includes income and return of capital, and excludes special distributions. The Distribution Rate is not guaranteed, subject to change, and is not a quotation of fund performance.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.

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Individual Investor

Financial Professional

Institutional Investor

FROTX Franklin Convertible Securities Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class C

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Risk Measures

Ratings 3

Portfolio

Asset Allocation

Distributions & Tax

Federal ID Number 94-6600097

Pricing

Chart

Daily Fund Prices

Documents

Risks

Important Information

Footnotes

Ratings ³