Download - Franklin Templeton Investments

Franklin Convertible Securities
Fund
Hybrid
June 30, 2017
Fund Fact Sheet | Share Classes: A, C
Fund Description
Performance
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.
Growth of a $10,000 Investment - Without Sales Charge (from 04/15/1987-06/30/2017)
$120,000
$90,000
Fund Overview
Number of Issuers
06/17
10/09
04/02
$0
76
Share Class Information
CUSIP
353 612 104
353 612 880
NASDAQ
Symbol
FISCX
FROTX
Fund Management
Years with
Years of
Firm Experience
18
18
11
22
4
4
Alan Muschott, CFA
Matt Quinlan
Eric Webster, CFA
Maximum Sales Charge
Class A: 5.75% initial sales charge
Class C: 1.00% contingent deferred sales charge
(CDSC) in the first year only
Total Annual Operating Expenses
With Waiver
0.86%
1.61%
Without
Waiver
0.87%
1.62%
30-Day Standardized Yield
Share Class
A
C
$30,000
10/94
4/15/1987
Quarterly
04/87
Fund Inception Date
Dividend Frequency
Share Class
A
C
$141,324
$60,000
Total Net Assets [All Share Classes] $2,456 million
Share Class
A
C
Franklin Convertible
Securities Fund - Class
A:
$150,000
With Waiver Without Waiver
1.19%
1.17%
0.51%
0.50%
Asset Allocation (%)
Convertibles
Cash & Cash Equivalents
Equity
92.13
4.65
3.22
Total Returns % (as of 6/30/2017)
CUMULATIVE
Share Class
A
With Sales Charge
Without Sales Charge
C
With Sales Charge
Without Sales Charge
AVERAGE ANNUAL
YTD
4.34
10.72
9.36
10.36
1 Yr
8.05
14.66
12.83
13.83
3 Yrs
3.24
5.30
4.53
4.53
5 Yrs
9.30
10.61
9.79
9.79
Since
10 Yrs Inception
5.49
8.95
6.12
9.16
5.32
7.61
5.32
7.61
Inception
Date
4/15/1987
4/15/1987
10/2/1995
10/2/1995
Calendar Year Total Returns % – Without Sales Charge
Share Class
A
C
2016
7.74
6.87
2015
0.77
0.09
2014
4.34
3.52
2013
23.20
22.31
2012
13.39
12.54
2011
-5.58
-6.24
2010
20.50
19.50
2009
49.72
48.67
2008
-35.38
-35.88
2007
0.50
-0.19
Share Class
A
C
2006
12.15
11.30
2005
6.93
6.16
2004
16.02
15.10
2003
35.44
34.51
2002
-15.55
-16.17
2001
0.81
0.00
2000
15.36
14.60
1999
21.15
20.27
1998
-6.98
-7.66
1997
20.27
19.31
Performance data represents past performance, which does not guarantee future results. Current performance may
differ from figures shown. The fund’s investment returns and principal values will change with market conditions, and
you may have a gain or a loss when you sell your shares. Please call Franklin Templeton at (800) DIAL BEN/(800)
342-5236 or visit franklintempleton.com for the most recent month-end performance.
If the sales charge had been included, the return would have been lower.
The fund has a fee waiver associated with any investment it makes in a Franklin Templeton money fund and/or other
Franklin Templeton fund, contractually guaranteed through February 28, 2018. Fund investment results reflect the
fee waiver; without this waiver, the results would have been lower.
Top Ten Holdings (% of Total)
Fund Measures
Issuer Name
ALIBABA GROUP HOLDING LTD
SQUARE INC
SERVICENOW INC
PRICELINE GROUP INC/THE
ZILLOW GROUP INC
DISH NETWORK CORP
CTRIP.COM INTERNATIONAL LTD
PROOFPOINT INC
MICRON TECHNOLOGY INC
MICROCHIP TECHNOLOGY INC
Standard Deviation (3
Yrs) - Class A
Beta (3 Yrs, vs.BofA
Merrill Lynch All Total
Return Alternatives
U.S. Convertibles
Index) - Class A
Franklin Templeton Distributors, Inc. One Franklin Parkway, San Mateo, CA 94403
tel: (800) DIAL BEN/342-5236 franklintempleton.com
2.27
2.16
2.12
2.10
2.07
2.07
1.99
1.99
1.98
1.97
8.07%
0.93
Not FDIC Insured | May Lose Value | No Bank Guarantee
Franklin Convertible Securities Fund
June 30, 2017
Composition of Fund
Geographic
United States
China
Netherlands
Mexico
Israel
Canada
Argentina
Cash & Cash Equivalents
% of Total
86.16
4.27
1.71
1.17
1.03
0.60
0.42
4.65
Sector
Information Technology
Health Care
Consumer Discretionary
Industrials
Utilities
Consumer Staples
Telecommunication Services
Materials
Real Estate
Energy
Cash & Cash Equivalents
% of Total
44.16
18.00
13.77
5.96
4.03
3.56
2.15
1.77
1.54
0.41
4.65
Morningstar Rating™—Class A
Overall Morningstar Rating™ As of June 30, 2017 the fund’s Class A shares received a 4 star overall Morningstar Rating™, measuring risk-adjusted returns against 77, 67 and 39
U.S.-domiciled Convertibles funds over the 3-, 5- and 10- year periods, respectively. A fund’s overall rating is derived from a weighted average of the
performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.
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.
Glossary
Beta: A measure of the fund's volatility relative to the market, as represented by the stated Index. A beta greater than 1.00 indicates volatility greater than the market.
Standard Deviation: A measure of the degree to which a fund's return varies from the average of its previous returns. The larger the standard deviation, the greater the likelihood (and risk) that a
fund's performance will fluctuate from the average return.
Important Information
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which
contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/342-5236 or visit franklintempleton.com. Please carefully read a prospectus before
you invest or send money.
Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
The index data referenced herein is the property of Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BofAML”) and/or its licensors and has been licensed for use by Franklin Templeton. BofAML
and its licensors accept no liability in connection with this use. See www.franklintempletondatasources.com for a full copy of the Disclaimer.
Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Fund Management: CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Performance: The fund offers other share classes subject to different fees and expenses, which will affect their performance.
Class A: Prior to 8/3/98, fund shares were offered at a lower initial sales charge; thus, actual returns may have differed. Effective 5/1/94, the fund implemented a Rule 12b-1 plan, which affects
subsequent performance. Class C: Prior to 1/1/04, these shares were offered with an initial sales charge; thus actual returns would have differed.
30-Day Standardized Yield: The fund’s 30-day standardized yield is calculated over a trailing 30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. It may not
equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Top Ten Holdings: The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included.
Composition of Fund: Percentage may not equal 100% due to rounding.
Morningstar Rating™: Source: Morningstar®, 6/30/17. For each mutual fund and ETF with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on how a fund ranks on a
Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance, and does not take into account the
effects of sales charges, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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 weights are: 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year
rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give
the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. The Fund's Class A shares received a Morningstar
Rating of 4, 5 and 4 star(s) for the 3-, 5- and 10-year periods, respectively. Morningstar Rating™ is for the named share class only; other classes may have different performance characteristics. Past
performance is not an indicator or a guarantee of future performance. Source: ©Morningstar. Important data provider notices and terms available at www.franklintempletondatasources.com.
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© 2017 Franklin Templeton Investments. All rights reserved.
137 FF 06/17
UPD 11/17