Franklin Convertible Securities Fund

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."

Alan Muschott, CFA®, MBA

Management

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

Rating

Overall Morningstar Rating As of 12/31/2017

Rating Category: Convertibles

Morningstar
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 12/31/2017

Years Ratings Funds
in category
3
5 Stars
82
5
5 Stars
67
10
5 Stars
43

Morningstar Style Box As of09/30/2017

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

See Prospectus

How Financial Advisors Help You

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