Franklin Convertible Securities Fund

PRICE AND YTD RETURN As of 07/27/2016

NAV up $0.02 $18.58
POP $19.71
YTD Total return at Nav 8.43%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 06/30/2016

Sales Charge

1 YEAR RETURN -4.14%
10 YEAR RETURN 5.64%


Investment Category Convertibles
Distributions Quarterly
CUSIP 353 612 104
Fund Number 137
Inception Date Apr 15, 1987
Total Net Assets (all share classes) As of 06/30/2016 $2,081.4 (M)
Distribution Rate at NAV As of 07/27/2016 2.73%
30-Day Standardized yield As of 06/30/2016 (updated monthly)
w/ Waiver 1.63%
w/o Waiver 1.62%

SALES CHARGE, EXPENSES, & FEES As of 03/01/2016 (updated annually)

Gross Expense Ratio 0.86%
Net Expense Ratio 0.86%
Max Initial Sales Charge 5.75%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description

The Fund invests mainly in convertible securities, which generally are bonds or preferred stocks that may be converted within a specified period of time into a set amount of common stock at a prestated price.

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."

Alan Muschott, CFA®, MBA


Alan Muschott, CFA, MBA

Alan Muschott, CFA®, MBA

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2002
Matt Quinlan, MBA

Matt Quinlan, MBA

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2007
Eric Webster, CFA, MBA

Eric Webster, CFA®, MBA

  • Joined Franklin Templeton in 2011
  • Managed Fund Since 2016

Overall Morningstar Rating As of 06/30/2016

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.

Historical Morningstar Rating As of 06/30/2016

Years Ratings Funds
in category
4 Stars
3 Stars
3 Stars

Morningstar Style Box As of 03/31/2016

Strategy, Benefits, Results


  • 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.


  • 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.
  • Stocks historically have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term.
  • The fund’s portfolio includes a substantial portion of higher yielding, lower-rated corporate bonds, which carry a greater degree of credit risk relative to investment-grade securities.
  • Interest-rate movements may affect the fund’s share price and yield.
  • Bond prices generally move in the opposite direction of interest rates, thus the fund’s share price may decline as the prices of bonds adjust to a rise in interest rates.
  • The fund may 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 financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

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