Franklin Convertible Securities Fund Q3 2025 Commentary
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Franklin Templeton4.62K FollowersFollow5ShareSavePlay(9min)CommentsSummaryUS and global convertible bonds (CBs) staged a broad-based advance and collectively returned 9.1% in 2025's third quarter (3Q25).Year-to-date, global CBs have now returned 18.5% outright.The global primary convertible bond market displayed remarkable resilience despite several macroeconomic and geopolitical headwinds.The asset class appeared to be experiencing what some might call "Goldilocks" conditions that have fueled the recent deal surge.We expect convertible and equity market volatility to persist in the near term as investors are contending with heightened macroeconomic and policy uncertainty. TheaDesign/iStock via Getty Images Key Takeaways 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 This article was written byFranklin Templeton4.62K FollowersFollowFranklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of June 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.Quick InsightsHow did FCSZX perform relative to its benchmark and peers in 3Q25?FCSZX posted broad-based gains, with Advisor Class returning 5.72% in 3Q25 and maintaining a 5-star Morningstar rating, outperforming many peers.What sectors and holdings drove the fund’s outperformance in the quarter?Consumer discretionary and materials led gains, with Wayfair, Alibaba, and B2Gold as notable outperformers due to event-driven catalysts and sector rallies.What are the key risks and forward-looking considerations for FCSZX?I see persistent volatility from macroeconomic and policy uncertainty, including tariffs, inflation, and geopolitical risks, but continue to favor balanced convertibles for asymmetric risk-reward.Recommended For You