Franklin Convertible Securities Fund

Franklin Investors Securities Trust · 4 share classes

Actively managed U.S. bond fund
One fund, 4 share classes:FISCXFROTXFCSZXFCSKX
$2.96B NAV
74 positions · as of 2026-04-30 · filed 2026-06-24

Fund classification

Classified from what the fund holds · as of 2026 Q2

Franklin Convertible Securities Fund is an actively managed U.S. bond fund. 0% of FISCX’s stock holdings are in companies whose revenue grew in the top quartile of U.S. companies over the last five fiscal years (covering 100% of the fund’s equity).

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund
Credit quality
High yield
Rate sensitivity
Short duration

Fund profile

As filed in the prospectus · 2026 Q1

To maximize total return, consistent with reasonable risk, by seeking to optimize capital appreciation and high current income under varying market conditions.

Strategy · summarised

The fund invests at least 80% of its net assets in convertible securities—debt or preferred stock convertible into common equity—seeking to balance equity upside participation with fixed-income stability and reduced volatility. The manager emphasizes equity characteristics while evaluating issuers' long-term earnings, asset value, and cash flow, and may hold enhanced convertible structures that trade conversion premiums for improved yield or downside protection. Convertible securities typically carry below-investment-grade ratings, so the fund may hold up to 100% in non-investment-grade debt. Because security selection depends on the manager's assessment of individual issuers and equity features, performance will diverge from any benchmark.

Expenses
0.51% 1.57%across 4 share classes
Share classGrossNet
FISCX0.83%0.82%
FROTX1.58%1.57%
FCSZX0.58%0.57%
FCSKX0.52%0.51%

Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.

Portfolio turnover 30.12% · as of 2026 Q1

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.55%
of net assets
Bonds73.88%
Stocks21.70%
Cash & short-term3.96%

Sector allocation

The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2

100%
of net assets
Information Technology20.1%
Health Care13.3%
Other10.0%
Utilities9.8%
10 smaller46.9%

Government, Securitized and Cash are non-corporate buckets; International is foreign holdings we don’t sector-classify, and Other is the residual (held funds, unresolved names).

Portfolio growth profile

How much of the fund’s stock holdings are in fast-growing companies · as of 2026 Q1

Revenue growth
0%of stock holdings in top-quartile growers
covering 100% of the fund’s equity

Share of the fund’s equity (by value) in companies whose trailing five-year revenue — or net-income — growth ranks in the top 25% of U.S. public companies. Foreign and newly-listed holdings are excluded, so the figure covers only part of the book. From SEC filings — not investment advice. How we measure this.

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 6 new8 exited

New: Bridgebio Pharma, Inc., Integer Holdings Corp., Oracle Corp., PPL Corp., Indivior Pharmaceuticals, Inc., Alkami Technology, Inc.

Exited: Bridgebio Pharma, Inc., Integer Holdings Corp., Liberty Broadband Corp., Viavi Solutions, Inc., Oil States International, Inc., Haemonetics Corp., Alkami Technology, Inc., WOLF

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+21.21%+47.06%+30.23%7.44%-8.38%
+20.33%+43.79%+25.41%7.45%-8.56%
+21.52%+48.16%+31.84%7.46%-8.32%
+21.64%+48.42%+32.34%7.47%-8.32%

These classes hold the same portfolio, so the 6.93pp spread over 5 years is the cost difference between them — roughly 1.39pp a year — not a difference in what they own.

Cumulative return· May 2023 – Apr 2026

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30

Avg coupon
1.73%
Avg maturity
3.64 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

0%
floating
Fixed rate80.6%
Zero-coupon or unclassified19.4%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y11.6%
1-3y27.7%
3-5y49.0%
5-10y9.7%
10y+1.9%
Flagged holdings
Defaulted: none reported
In arrears: none reported
Paid in kind: 0.24% · $5.16M · 1 positions

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
0.99 yr
approx. move per 100bp
Credit-spread duration
1.46 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -2.5%
of value
Credit spreads60%
Interest rates40%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+1.46
yrs total
High yield+1.25 yr
Investment grade+0.21 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate0.99 yr total
3 mo30 yr
3 mo0.01 yr1%
1 yr0.34 yr34%
5 yr0.62 yr63%
10 yr0.02 yr2%
30 yr0.00 yr0%
Credit spread1.46 yr total
3 mo10 yr
3 mo0.03 yr2%
1 yr0.47 yr32%
5 yr0.94 yr64%
10 yr0.03 yr2%

30 yr is NEGATIVE (-0.00 yr) — a deliberate hedge at that point on the curve, so it is not part of the band above.

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.01+0.02+0.01$4.7k$2.8k
1 yr+0.34+0.06+0.41$16.3k$122.0k
5 yr+0.62+0.14+0.80$41.7k$236.0k
10 yr+0.02+0.00+0.03$187$8.7k
30 yr+0.00+0.00-0.00$0-$256

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
Franklin Institutional U.S. Government Money Market FundINFXX3.96%$117.20M
Albemarle Corp.2.80%$82.87M
Welltower OP LLC3.13% · due 2029-07-152.76%$81.45M
MACOM Technology Solutions Holdings, Inc.0.00% · due 2029-12-152.71%$80.00M
MKS, Inc.1.25% · due 2030-06-012.67%$78.78M
Hewlett Packard Enterprise Co.2.64%$78.15M
Bridgebio Pharma, Inc.1.75% · due 2031-03-012.58%$76.32M
Burlington Stores, Inc.1.25% · due 2027-12-152.33%$68.99M
CenterPoint Energy, Inc.4.25% · due 2026-08-152.09%$61.74M
NextEra Energy, Inc.2.08%$61.40M
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Reported price is the fund's own reported value divided by its own reported shares at 2026-04-30 — not a live quote, and not what the fund paid.

Top 10 positions are 26.62% of net assets, top 25 53.18%, across 66 issuers.

See more of this fund's book

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