Putnam Convertible Securities Fund
12/29/2025 | Press release | Distributed by Public on 12/29/2025 11:51
Annual Report by Investment Company (Form N-CSR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02280
Putnam Convertible Securities Fund
(Exact name of registrant as specified in charter)
100 Federal Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Stephen Tate, Vice President
100 Federal Street,
Boston, Massachusetts 02110
Copy to:
Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, NY 10036
James E. Thomas, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31
Date of reporting period: October 31, 2025
| ITEM 1. | REPORT TO STOCKHOLDERS. |
(a) The Report to Shareholders is filed herewith
|
Putnam Convertible Securities Fund
|
||
|
Class A[PCONX]
|
||
|
Annual Shareholder Report | October 31, 2025
|
||
This annual shareholder reportcontains important information about Putnam Convertible Securities Fund for the period November 1, 2024, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Class A
|
$110
|
1.01%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended October 31, 2025, Class A shares of Putnam Convertible Securities Fund returned 16.87%. The Fund compares its performance to the ICE BofA U.S. Convertible Index, which returned 22.32% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
At the sector level, underweight exposure and security selection within utilities was the top contributor to relative returns
|
|
↑
|
The top individual contributor was our overweight position to Seagate, a data storage solutions company, due to immense demand for data storage to support artificial intelligence (AI)
|
|
↑
|
Our overweight position to NRG Energy was also beneficial.
|
|
Top detractors from performance:
|
|
|
↓
|
Security selection within the industrials sector was the main detractor to relative performance, particularly our decision to not hold Bloom Energy, which benefited from increased AI-related energy demand.
|
|
↓
|
Our decision to avoid Western Digital, another data storage solutions company, detracted as the underlying equity surged on increased demand.
|
|
↓
|
Security selection within health care also negatively impacted relative returns.
|
| Putnam Convertible Securities Fund | PAGE 1 | 38903-ATSA-1225 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT ($9,425 AFTER MAXIMUM APPLICABLE SALES CHARGE) -
Class A 10/31/2015 - 10/31/2025
Class A 10/31/2015 - 10/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended October 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class A
|
16.87
|
7.22
|
9.81
|
|
Class A (with sales charge)
|
10.15
|
5.96
|
9.16
|
|
Bloomberg U.S. Aggregate Index
|
6.16
|
-0.24
|
1.90
|
|
ICE BofA U.S. Convertible Index
|
22.32
|
9.32
|
11.04
|
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
For current month-end performance, please call Franklin Templeton at (800) 225-1581 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of October 31, 2025)
|
Total Net Assets
|
$531,347,073
|
|
Total Number of Portfolio Holdings
|
114
|
|
Total Management Fee Paid
|
$3,086,272
|
|
Portfolio Turnover Rate
|
88%
|
| Putnam Convertible Securities Fund | PAGE 2 | 38903-ATSA-1225 |
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
HOW HAS THE FUND CHANGED?
Effective November 1, 2024 (the "Effective Date"), Putnam Investments Limited ("PIL"), a sub-advisor of the Fund prior to the Effective Date, merged with and into Franklin Templeton Investment Management Limited ("FTIML"), a wholly-owned subsidiary of Franklin Resources, Inc. (the "Merger"). As of the Effective Date, PIL investment professionals became employees of FTIML, and the sub-advisory agreement between Putnam Investment Management, LLC ("Putnam Management") and PIL with respect to the Fund was terminated. In connection with the Merger, the Fund's Trustees approved a new sub-advisory agreement between Putnam Management and FTIML, pursuant to which FTIML became a sub-advisor of the Fund on the Effective Date.
This is a summary of certain changes to the Fund since November 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by March 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) 225-1581 or [email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
HOUSEHOLDING
You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 225-1581. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.
| Putnam Convertible Securities Fund | PAGE 3 | 38903-ATSA-1225 |
|
Putnam Convertible Securities Fund
|
||
|
Class C[PRCCX]
|
||
|
Annual Shareholder Report | October 31, 2025
|
||
This annual shareholder reportcontains important information about Putnam Convertible Securities Fund for the period November 1, 2024, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Class C
|
$191
|
1.77%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended October 31, 2025, Class C shares of Putnam Convertible Securities Fund returned 16.01%. The Fund compares its performance to the ICE BofA U.S. Convertible Index, which returned 22.32% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
At the sector level, underweight exposure and security selection within utilities was the top contributor to relative returns
|
|
↑
|
The top individual contributor was our overweight position to Seagate, a data storage solutions company, due to immense demand for data storage to support artificial intelligence (AI)
|
|
↑
|
Our overweight position to NRG Energy was also beneficial.
|
|
Top detractors from performance:
|
|
|
↓
|
Security selection within the industrials sector was the main detractor to relative performance, particularly our decision to not hold Bloom Energy, which benefited from increased AI-related energy demand.
|
|
↓
|
Our decision to avoid Western Digital, another data storage solutions company, detracted as the underlying equity surged on increased demand.
|
|
↓
|
Security selection within health care also negatively impacted relative returns.
|
| Putnam Convertible Securities Fund | PAGE 1 | 38903-ATSC-1225 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class C 10/31/2015 - 10/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended October 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class C
|
16.01
|
6.43
|
9.15
|
|
Class C (with sales charge)
|
15.01
|
6.43
|
9.15
|
|
Bloomberg U.S. Aggregate Index
|
6.16
|
-0.24
|
1.90
|
|
ICE BofA U.S. Convertible Index
|
22.32
|
9.32
|
11.04
|
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
Class C share performance reflects conversion to class A shares after eight years.
For current month-end performance, please call Franklin Templeton at (800) 225-1581 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of October 31, 2025)
|
Total Net Assets
|
$531,347,073
|
|
Total Number of Portfolio Holdings
|
114
|
|
Total Management Fee Paid
|
$3,086,272
|
|
Portfolio Turnover Rate
|
88%
|
| Putnam Convertible Securities Fund | PAGE 2 | 38903-ATSC-1225 |
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
HOW HAS THE FUND CHANGED?
Effective November 1, 2024 (the "Effective Date"), Putnam Investments Limited ("PIL"), a sub-advisor of the Fund prior to the Effective Date, merged with and into Franklin Templeton Investment Management Limited ("FTIML"), a wholly-owned subsidiary of Franklin Resources, Inc. (the "Merger"). As of the Effective Date, PIL investment professionals became employees of FTIML, and the sub-advisory agreement between Putnam Investment Management, LLC ("Putnam Management") and PIL with respect to the Fund was terminated. In connection with the Merger, the Fund's Trustees approved a new sub-advisory agreement between Putnam Management and FTIML, pursuant to which FTIML became a sub-advisor of the Fund on the Effective Date.
This is a summary of certain changes to the Fund since November 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by March 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) 225-1581 or [email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
HOUSEHOLDING
You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 225-1581. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.
| Putnam Convertible Securities Fund | PAGE 3 | 38903-ATSC-1225 |
|
Putnam Convertible Securities Fund
|
||
|
Class I[PCNIX]
|
||
|
Annual Shareholder Report | October 31, 2025
|
||
This annual shareholder reportcontains important information about Putnam Convertible Securities Fund for the period November 1, 2024, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Class I
|
$74
|
0.68%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended October 31, 2025, Class I shares of Putnam Convertible Securities Fund returned 17.25%. The Fund compares its performance to the ICE BofA U.S. Convertible Index, which returned 22.32% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
At the sector level, underweight exposure and security selection within utilities was the top contributor to relative returns
|
|
↑
|
The top individual contributor was our overweight position to Seagate, a data storage solutions company, due to immense demand for data storage to support artificial intelligence (AI)
|
|
↑
|
Our overweight position to NRG Energy was also beneficial.
|
|
Top detractors from performance:
|
|
|
↓
|
Security selection within the industrials sector was the main detractor to relative performance, particularly our decision to not hold Bloom Energy, which benefited from increased AI-related energy demand.
|
|
↓
|
Our decision to avoid Western Digital, another data storage solutions company, detracted as the underlying equity surged on increased demand.
|
|
↓
|
Security selection within health care also negatively impacted relative returns.
|
| Putnam Convertible Securities Fund | PAGE 1 | 38903-ATSI-1225 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class I 10/31/2015 - 10/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended October 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class I
|
17.25
|
7.61
|
10.22
|
|
Bloomberg U.S. Aggregate Index
|
6.16
|
-0.24
|
1.90
|
|
ICE BofA U.S. Convertible Index
|
22.32
|
9.32
|
11.04
|
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
For current month-end performance, please call Franklin Templeton at (800) 225-1581 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of October 31, 2025)
|
Total Net Assets
|
$531,347,073
|
|
Total Number of Portfolio Holdings
|
114
|
|
Total Management Fee Paid
|
$3,086,272
|
|
Portfolio Turnover Rate
|
88%
|
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| Putnam Convertible Securities Fund | PAGE 2 | 38903-ATSI-1225 |
HOW HAS THE FUND CHANGED?
Effective November 1, 2024 (the "Effective Date"), Putnam Investments Limited ("PIL"), a sub-advisor of the Fund prior to the Effective Date, merged with and into Franklin Templeton Investment Management Limited ("FTIML"), a wholly-owned subsidiary of Franklin Resources, Inc. (the "Merger"). As of the Effective Date, PIL investment professionals became employees of FTIML, and the sub-advisory agreement between Putnam Investment Management, LLC ("Putnam Management") and PIL with respect to the Fund was terminated. In connection with the Merger, the Fund's Trustees approved a new sub-advisory agreement between Putnam Management and FTIML, pursuant to which FTIML became a sub-advisor of the Fund on the Effective Date.
This is a summary of certain changes to the Fund since November 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by March 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) 225-1581 or [email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
HOUSEHOLDING
You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 225-1581. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.
| Putnam Convertible Securities Fund | PAGE 3 | 38903-ATSI-1225 |
|
Putnam Convertible Securities Fund
|
||
|
Class R[PCVRX]
|
||
|
Annual Shareholder Report | October 31, 2025
|
||
This annual shareholder reportcontains important information about Putnam Convertible Securities Fund for the period November 1, 2024, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Class R
|
$136
|
1.26%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended October 31, 2025, Class R shares of Putnam Convertible Securities Fund returned 16.58%. The Fund compares its performance to the ICE BofA U.S. Convertible Index, which returned 22.32% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
At the sector level, underweight exposure and security selection within utilities was the top contributor to relative returns
|
|
↑
|
The top individual contributor was our overweight position to Seagate, a data storage solutions company, due to immense demand for data storage to support artificial intelligence (AI)
|
|
↑
|
Our overweight position to NRG Energy was also beneficial.
|
|
Top detractors from performance:
|
|
|
↓
|
Security selection within the industrials sector was the main detractor to relative performance, particularly our decision to not hold Bloom Energy, which benefited from increased AI-related energy demand.
|
|
↓
|
Our decision to avoid Western Digital, another data storage solutions company, detracted as the underlying equity surged on increased demand.
|
|
↓
|
Security selection within health care also negatively impacted relative returns.
|
| Putnam Convertible Securities Fund | PAGE 1 | 38903-ATSR-1225 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class R 10/31/2015 - 10/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended October 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class R
|
16.58
|
6.96
|
9.54
|
|
Bloomberg U.S. Aggregate Index
|
6.16
|
-0.24
|
1.90
|
|
ICE BofA U.S. Convertible Index
|
22.32
|
9.32
|
11.04
|
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
For current month-end performance, please call Franklin Templeton at (800) 225-1581 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of October 31, 2025)
|
Total Net Assets
|
$531,347,073
|
|
Total Number of Portfolio Holdings
|
114
|
|
Total Management Fee Paid
|
$3,086,272
|
|
Portfolio Turnover Rate
|
88%
|
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| Putnam Convertible Securities Fund | PAGE 2 | 38903-ATSR-1225 |
HOW HAS THE FUND CHANGED?
Effective November 1, 2024 (the "Effective Date"), Putnam Investments Limited ("PIL"), a sub-advisor of the Fund prior to the Effective Date, merged with and into Franklin Templeton Investment Management Limited ("FTIML"), a wholly-owned subsidiary of Franklin Resources, Inc. (the "Merger"). As of the Effective Date, PIL investment professionals became employees of FTIML, and the sub-advisory agreement between Putnam Investment Management, LLC ("Putnam Management") and PIL with respect to the Fund was terminated. In connection with the Merger, the Fund's Trustees approved a new sub-advisory agreement between Putnam Management and FTIML, pursuant to which FTIML became a sub-advisor of the Fund on the Effective Date.
This is a summary of certain changes to the Fund since November 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by March 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) 225-1581 or [email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
HOUSEHOLDING
You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 225-1581. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.
| Putnam Convertible Securities Fund | PAGE 3 | 38903-ATSR-1225 |
|
Putnam Convertible Securities Fund
|
||
|
Class R6[PCNTX]
|
||
|
Annual Shareholder Report | October 31, 2025
|
||
This annual shareholder reportcontains important information about Putnam Convertible Securities Fund for the period November 1, 2024, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Class R6
|
$77
|
0.71%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended October 31, 2025, Class R6 shares of Putnam Convertible Securities Fund returned 17.25%. The Fund compares its performance to the ICE BofA U.S. Convertible Index, which returned 22.32% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
At the sector level, underweight exposure and security selection within utilities was the top contributor to relative returns
|
|
↑
|
The top individual contributor was our overweight position to Seagate, a data storage solutions company, due to immense demand for data storage to support artificial intelligence (AI)
|
|
↑
|
Our overweight position to NRG Energy was also beneficial.
|
|
Top detractors from performance:
|
|
|
↓
|
Security selection within the industrials sector was the main detractor to relative performance, particularly our decision to not hold Bloom Energy, which benefited from increased AI-related energy demand.
|
|
↓
|
Our decision to avoid Western Digital, another data storage solutions company, detracted as the underlying equity surged on increased demand.
|
|
↓
|
Security selection within health care also negatively impacted relative returns.
|
| Putnam Convertible Securities Fund | PAGE 1 | 38903-ATSR6-1225 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class R6 10/31/2015 - 10/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended October 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class R6
|
17.25
|
7.56
|
10.14
|
|
Bloomberg U.S. Aggregate Index
|
6.16
|
-0.24
|
1.90
|
|
ICE BofA U.S. Convertible Index
|
22.32
|
9.32
|
11.04
|
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
The Fund began offering Class R6 shares on 5/22/2018. Returns for periods before 5/22/2018 are based on the Fund's Class Y performance, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would have been higher. For periods after the share class offering, performance for the specific share class is used, reflecting the applicable expenses and maximum sales charges.
For current month-end performance, please call Franklin Templeton at (800) 225-1581 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of October 31, 2025)
|
Total Net Assets
|
$531,347,073
|
|
Total Number of Portfolio Holdings
|
114
|
|
Total Management Fee Paid
|
$3,086,272
|
|
Portfolio Turnover Rate
|
88%
|
| Putnam Convertible Securities Fund | PAGE 2 | 38903-ATSR6-1225 |
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
HOW HAS THE FUND CHANGED?
Effective November 1, 2024 (the "Effective Date"), Putnam Investments Limited ("PIL"), a sub-advisor of the Fund prior to the Effective Date, merged with and into Franklin Templeton Investment Management Limited ("FTIML"), a wholly-owned subsidiary of Franklin Resources, Inc. (the "Merger"). As of the Effective Date, PIL investment professionals became employees of FTIML, and the sub-advisory agreement between Putnam Investment Management, LLC ("Putnam Management") and PIL with respect to the Fund was terminated. In connection with the Merger, the Fund's Trustees approved a new sub-advisory agreement between Putnam Management and FTIML, pursuant to which FTIML became a sub-advisor of the Fund on the Effective Date.
This is a summary of certain changes to the Fund since November 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by March 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) 225-1581 or [email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
HOUSEHOLDING
You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 225-1581. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.
| Putnam Convertible Securities Fund | PAGE 3 | 38903-ATSR6-1225 |
|
Putnam Convertible Securities Fund
|
||
|
Class Y[PCGYX]
|
||
|
Annual Shareholder Report | October 31, 2025
|
||
This annual shareholder reportcontains important information about Putnam Convertible Securities Fund for the period November 1, 2024, to October 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Class Y
|
$83
|
0.76%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended October 31, 2025, Class Y shares of Putnam Convertible Securities Fund returned 17.19%. The Fund compares its performance to the ICE BofA U.S. Convertible Index, which returned 22.32% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
At the sector level, underweight exposure and security selection within utilities was the top contributor to relative returns
|
|
↑
|
The top individual contributor was our overweight position to Seagate, a data storage solutions company, due to immense demand for data storage to support artificial intelligence (AI)
|
|
↑
|
Our overweight position to NRG Energy was also beneficial.
|
|
Top detractors from performance:
|
|
|
↓
|
Security selection within the industrials sector was the main detractor to relative performance, particularly our decision to not hold Bloom Energy, which benefited from increased AI-related energy demand.
|
|
↓
|
Our decision to avoid Western Digital, another data storage solutions company, detracted as the underlying equity surged on increased demand.
|
|
↓
|
Security selection within health care also negatively impacted relative returns.
|
| Putnam Convertible Securities Fund | PAGE 1 | 38903-ATSY-1225 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Class Y 10/31/2015 - 10/31/2025
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended October 31, 2025
|
1 Year
|
5 Year
|
10 Year
|
|
|
Class Y
|
17.19
|
7.50
|
10.09
|
|
Bloomberg U.S. Aggregate Index
|
6.16
|
-0.24
|
1.90
|
|
ICE BofA U.S. Convertible Index
|
22.32
|
9.32
|
11.04
|
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
For current month-end performance, please call Franklin Templeton at (800) 225-1581 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of October 31, 2025)
|
Total Net Assets
|
$531,347,073
|
|
Total Number of Portfolio Holdings
|
114
|
|
Total Management Fee Paid
|
$3,086,272
|
|
Portfolio Turnover Rate
|
88%
|
WHAT DID THE FUND INVEST IN? (as of October 31, 2025)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| Putnam Convertible Securities Fund | PAGE 2 | 38903-ATSY-1225 |
HOW HAS THE FUND CHANGED?
Effective November 1, 2024 (the "Effective Date"), Putnam Investments Limited ("PIL"), a sub-advisor of the Fund prior to the Effective Date, merged with and into Franklin Templeton Investment Management Limited ("FTIML"), a wholly-owned subsidiary of Franklin Resources, Inc. (the "Merger"). As of the Effective Date, PIL investment professionals became employees of FTIML, and the sub-advisory agreement between Putnam Investment Management, LLC ("Putnam Management") and PIL with respect to the Fund was terminated. In connection with the Merger, the Fund's Trustees approved a new sub-advisory agreement between Putnam Management and FTIML, pursuant to which FTIML became a sub-advisor of the Fund on the Effective Date.
This is a summary of certain changes to the Fund since November 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by March 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) 225-1581 or [email protected].
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
HOUSEHOLDING
You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 225-1581. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.
| Putnam Convertible Securities Fund | PAGE 3 | 38903-ATSY-1225 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 19(a) (1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
The Board of Trustees of the Registrant has determined that Gregory G. McGreevey and Manoj P. Singh possess the technical attributes identified in Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Gregory G. McGreevey and Manoj P. Singh as the Audit Committee's financial experts. Gregory G. McGreevey and Manoj P. Singh are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
(a) Audit Fees. The aggregate fees billed in the last two fiscal years ending October 31, 2024 and October 31, 2025 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $44,196 in October 31, 2024 and $63,262 in October 31, 2025.
(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in October 31, 2024 and $0 in October 31, 2025.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $8,317 in October 31, 2024 and $13,863 in October 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.
(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in October 31, 2024 and $0 in October 31, 2025.
There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.
(e) Audit Committee's pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.
Pre-Approval Policies of the Audit, Compliance and Risk Committee. The Audit, Compliance and Risk Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds' independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures.
The Audit, Compliance and Risk Committee also has adopted a policy to pre-approve the engagement by the fund's investment manager and certain of its affiliates of the fund's independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by the fund's investment manager or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm.
(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $872,036 in October 31, 2024 and $1,820,011 in October 31, 2025.
(h) Yes. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.
(i) Not applicable.
(j) Not applicable
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| (b) | Not applicable. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Putnam
Convertible
Securities
Fund
Financial
Statements
and
Other
Important
Information
Annual
|
October 31, 2025
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information-Annual
1
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
14
Notes
to
Financial
Statements
18
Report
of
Independent
Registered
Public
Accounting
Firm
28
Tax
Information
29
Changes
In
and
Disagreements
with
Accountants
30
Results
of
Meeting(s)
of
Shareholders
30
Remuneration
Paid
to
Directors,
Officers
and
Others
30
Board
Approval
of
Management
and
Subadvisory
Agreements
30
Putnam
Convertible
Securities
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Year
Ended
October
31,
2025
2024
2023
2022
2021
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$25.39
$20.79
$21.59
$34.68
$30.49
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.35
0.33
0.25
0.15
0.10
Net
realized
and
unrealized
gains
(losses)
...........
3.88
4.59
(0.67)
(6.08)
7.67
Total
from
investment
operations
....................
4.23
4.92
(0.42)
(5.93)
7.77
Less
distributions
from:
Net
investment
income
..........................
(0.76)
(0.32)
(0.28)
(0.14)
(0.18)
Net
realized
gains
.............................
-
-
(0.10)
(7.02)
(3.40)
Total
distributions
...............................
(0.76)
(0.32)
(0.38)
(7.16)
(3.58)
Net
asset
value,
end
of
year
.......................
$28.86
$25.39
$20.79
$21.59
$34.68
Total
return
c
...................................
16.87%
23.80%
(2.00)%
(20.93)%
26.41%
Ratios
to
average
net
assets
Expenses
d
....................................
1.01%
1.03%
1.05%
1.03%
1.01%
Net
investment
income
...........................
1.32%
1.41%
1.16%
0.63%
0.31%
Supplemental
data
Net
assets
,
end
of
year
(000's)
.....................
$372,700
$359,663
$331,832
$389,289
$570,217
Portfolio
turnover
rate
............................
88%
61%
64%
37%
78%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Convertible
Securities
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
3
a
Year
Ended
October
31,
2025
2024
2023
2022
2021
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$24.75
$20.26
$21.05
$34.04
$30.06
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
....................
0.15
0.15
0.09
(0.03)
(0.14)
Net
realized
and
unrealized
gains
(losses)
...........
3.77
4.48
(0.66)
(5.94)
7.55
Total
from
investment
operations
....................
3.92
4.63
(0.57)
(5.97)
7.41
Less
distributions
from:
Net
investment
income
..........................
(0.55)
(0.14)
(0.12)
-
(0.03)
Net
realized
gains
.............................
-
-
(0.10)
(7.02)
(3.40)
Total
distributions
...............................
(0.55)
(0.14)
(0.22)
(7.02)
(3.43)
Net
asset
value,
end
of
year
.......................
$28.12
$24.75
$20.26
$21.05
$34.04
Total
return
c
...................................
16.01%
22.93%
(2.76)%
(21.51)%
25.46%
Ratios
to
average
net
assets
Expenses
d
....................................
1.77%
1.78%
1.80%
1.78%
1.76%
Net
investment
income
(loss)
......................
0.57%
0.67%
0.41%
(0.14)%
(0.41)%
Supplemental
data
Net
assets
,
end
of
year
(000's)
.....................
$5,385
$6,586
$8,012
$10,648
$23,390
Portfolio
turnover
rate
............................
88%
61%
64%
37%
78%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Convertible
Securities
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
Year
Ended
October
31,
2025
2024
2023
2022
2021
Class
I
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$25.44
$20.82
$21.62
$34.73
$30.52
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.44
0.42
0.34
0.24
0.22
Net
realized
and
unrealized
gains
(losses)
...........
3.88
4.60
(0.68)
(6.10)
7.68
Total
from
investment
operations
....................
4.32
5.02
(0.34)
(5.86)
7.90
Less
distributions
from:
Net
investment
income
..........................
(0.85)
(0.40)
(0.36)
(0.23)
(0.29)
Net
realized
gains
.............................
-
-
(0.10)
(7.02)
(3.40)
Total
distributions
...............................
(0.85)
(0.40)
(0.46)
(7.25)
(3.69)
Net
asset
value,
end
of
year
.......................
$28.91
$25.44
$20.82
$21.62
$34.73
Total
return
....................................
17.25%
24.31%
(1.64)%
(20.66)%
26.87%
Ratios
to
average
net
assets
Expenses
c
.....................................
0.68%
0.68%
0.69%
0.68%
0.67%
Net
investment
income
...........................
1.67%
1.76%
1.53%
0.99%
0.65%
Supplemental
data
Net
assets
,
end
of
year
(000's)
.....................
$24
$21
$17
$17
$22
Portfolio
turnover
rate
............................
88%
61%
64%
37%
78%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Convertible
Securities
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
5
a
Year
Ended
October
31,
2025
2024
2023
2022
2021
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$25.20
$20.63
$21.43
$34.47
$30.33
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.28
0.27
0.20
0.09
0.02
Net
realized
and
unrealized
gains
(losses)
...........
3.84
4.56
(0.67)
(6.04)
7.62
Total
from
investment
operations
....................
4.12
4.83
(0.47)
(5.95)
7.64
Less
distributions
from:
Net
investment
income
..........................
(0.69)
(0.26)
(0.23)
(0.07)
(0.10)
Net
realized
gains
.............................
-
-
(0.10)
(7.02)
(3.40)
Total
distributions
...............................
(0.69)
(0.26)
(0.33)
(7.09)
(3.50)
Net
asset
value,
end
of
year
.......................
$28.63
$25.20
$20.63
$21.43
$34.47
Total
return
....................................
16.58%
23.54%
(2.25)%
(21.13)%
26.08%
Ratios
to
average
net
assets
Expenses
c
.....................................
1.26%
1.28%
1.30%
1.28%
1.26%
Net
investment
income
...........................
1.07%
1.16%
0.91%
0.38%
0.06%
Supplemental
data
Net
assets
,
end
of
year
(000's)
.....................
$2,581
$2,615
$2,252
$2,555
$3,989
Portfolio
turnover
rate
............................
88%
61%
64%
37%
78%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Convertible
Securities
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
Year
Ended
October
31,
2025
2024
2023
2022
2021
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$25.37
$20.78
$21.58
$34.68
$30.48
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.42
0.41
0.32
0.22
0.20
Net
realized
and
unrealized
gains
(losses)
...........
3.88
4.57
(0.66)
(6.08)
7.68
Total
from
investment
operations
....................
4.30
4.98
(0.34)
(5.86)
7.88
Less
distributions
from:
Net
investment
income
..........................
(0.84)
(0.39)
(0.36)
(0.22)
(0.28)
Net
realized
gains
.............................
-
-
(0.10)
(7.02)
(3.40)
Total
distributions
...............................
(0.84)
(0.39)
(0.46)
(7.24)
(3.68)
Net
asset
value,
end
of
year
.......................
$28.83
$25.37
$20.78
$21.58
$34.68
Total
return
....................................
17.25%
24.16%
(1.68)%
(20.69)%
26.82%
Ratios
to
average
net
assets
Expenses
c
.....................................
0.71%
0.72%
0.73%
0.72%
0.71%
Net
investment
income
...........................
1.62%
1.73%
1.48%
0.95%
0.60%
Supplemental
data
Net
assets
,
end
of
year
(000's)
.....................
$19,062
$22,010
$25,006
$30,542
$21,126
Portfolio
turnover
rate
............................
88%
61%
64%
37%
78%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Convertible
Securities
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
7
a
Year
Ended
October
31,
2025
2024
2023
2022
2021
Class
Y
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$25.36
$20.76
$21.57
$34.66
$30.47
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.42
0.39
0.31
0.21
0.19
Net
realized
and
unrealized
gains
(losses)
...........
3.87
4.59
(0.68)
(6.07)
7.66
Total
from
investment
operations
....................
4.29
4.98
(0.37)
(5.86)
7.85
Less
distributions
from:
Net
investment
income
..........................
(0.83)
(0.38)
(0.34)
(0.21)
(0.26)
Net
realized
gains
.............................
-
-
(0.10)
(7.02)
(3.40)
Total
distributions
...............................
(0.83)
(0.38)
(0.44)
(7.23)
(3.66)
Net
asset
value,
end
of
year
.......................
$28.82
$25.36
$20.76
$21.57
$34.66
Total
return
....................................
17.19%
24.14%
(1.80)%
(20.73)%
26.73%
Ratios
to
average
net
assets
Expenses
c
.....................................
0.76%
0.78%
0.80%
0.78%
0.76%
Net
investment
income
...........................
1.57%
1.67%
1.41%
0.87%
0.56%
Supplemental
data
Net
assets
,
end
of
year
(000's)
.....................
$131,596
$125,331
$174,081
$228,939
$426,094
Portfolio
turnover
rate
............................
88%
61%
64%
37%
78%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Convertible
Securities
Fund
Schedule
of
Investments,
October
31,
2025
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
0.6%
Hotels,
Restaurants
&
Leisure
0.3%
a
Viking
Holdings
Ltd.
.................................
United
States
22,115
$
1,345,697
Oil,
Gas
&
Consumable
Fuels
0.3%
Exxon
Mobil
Corp.
...................................
United
States
16,130
1,844,627
Total
Common
Stocks
(Cost
$
2,357,907
)
.....................................
3,190,324
Convertible
Preferred
Stocks
9.2%
Aerospace
&
Defense
2.1%
Boeing
Co.
(The)
,
6
%
................................
United
States
171,312
11,087,313
Banks
1.9%
Bank
of
America
Corp.
,
L
,
7.25
%
........................
United
States
7,820
9,861,020
Capital
Markets
1.6%
Ares
Management
Corp.
,
B
,
6.75
%
......................
United
States
86,907
4,109,832
KKR
&
Co.,
Inc.
,
D
,
6.25
%
.............................
United
States
86,970
4,263,269
8,373,101
Chemicals
0.5%
Albemarle
Corp.
,
7.25
%
..............................
United
States
66,750
2,952,352
Financial
Services
0.9%
Apollo
Global
Management,
Inc.
,
6.75
%
..................
United
States
73,959
4,832,481
Semiconductors
&
Semiconductor
Equipment
0.5%
b
Microchip
Technology,
Inc.
,
7.5
%
........................
United
States
42,514
2,461,561
Technology
Hardware,
Storage
&
Peripherals
1.2%
Hewlett
Packard
Enterprise
Co.
,
7.625
%
..................
United
States
96,215
6,502,210
Trading
Companies
&
Distributors
0.5%
QXO,
Inc.
,
5.5
%
....................................
United
States
57,575
2,939,204
Total
Convertible
Preferred
Stocks
(Cost
$
45,455,718
)
.........................
49,009,242
Principal
Amount
*
Convertible
Bonds
89.4%
Aerospace
&
Defense
3.1%
AeroVironment,
Inc.
,
Senior
Note
,
Zero
Cpn.,
7/15/30
........
United
States
5,755,000
8,051,245
Axon
Enterprise,
Inc.
,
Senior
Note
,
0.5
%
,
12/15/27
..........
United
States
1,125,000
3,603,094
c
Rocket
Lab
USA,
Inc.
,
Senior
Note
,
144A,
4.25
%
,
2/01/29
.....
United
States
400,000
4,908,500
16,562,839
Automobile
Components
0.9%
Patrick
Industries,
Inc.
,
Senior
Note
,
1.75
%
,
12/01/28
........
United
States
2,975,000
4,895,362
Automobiles
0.5%
Rivian
Automotive,
Inc.
,
Senior
Note
,
4.625
%
,
3/15/29
........
United
States
2,485,000
2,455,491
Banks
1.3%
Barclays
Bank
plc
,
Senior
Note
,
1
%
,
2/16/29
...............
United
Kingdom
6,095,000
6,896,127
Biotechnology
5.0%
Alnylam
Pharmaceuticals,
Inc.
,
Senior
Note
,
1
%
,
9/15/27
...........................
United
States
1,503,000
2,476,192
c,d
Senior
Note
,
144A,
0
.27
%
,
9/15/28
....................
United
States
5,206,000
5,219,015
Ascendis
Pharma
A/S
,
Senior
Note
,
2.25
%
,
4/01/28
.........
Denmark
3,529,000
4,855,022
Putnam
Convertible
Securities
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Convertible
Bonds
(continued)
Biotechnology
(continued)
c
Exact
Sciences
Corp.
,
Senior
Note
,
144A,
1.75
%
,
4/15/31
.....
United
States
4,405,000
$
4,460,503
Halozyme
Therapeutics,
Inc.
,
Senior
Note
,
1
%
,
8/15/28
.......
United
States
4,927,000
6,474,078
Mirum
Pharmaceuticals,
Inc.
,
Senior
Note
,
4
%
,
5/01/29
.......
United
States
1,415,000
3,381,142
26,865,952
Broadline
Retail
1.8%
Alibaba
Group
Holding
Ltd.
,
Senior
Note
,
0.5
%
,
6/01/31
......
China
1,915,000
3,390,507
c
Etsy,
Inc.
,
Senior
Note
,
144A,
1
%
,
6/15/30
.................
United
States
3,555,000
3,787,853
JD.com,
Inc.
,
Senior
Note
,
0.25
%
,
6/01/29
.................
China
2,395,000
2,538,700
9,717,060
Capital
Markets
4.1%
Coinbase
Global,
Inc.
,
Senior
Note
,
0.25
%
,
4/01/30
.........................
United
States
3,555,000
4,538,846
c
Senior
Note
,
144A,
Zero
Cpn.,
10/01/32
................
United
States
5,919,000
6,611,523
c
Galaxy
Digital
Holdings
LP
,
Senior
Note
,
144A,
0.5
%
,
5/01/31
..
United
States
3,041,000
3,003,748
c
Hercules
Capital,
Inc.
,
Senior
Note
,
144A,
4.75
%
,
9/01/28
.....
United
States
3,430,000
3,380,608
c
WisdomTree,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
8/15/30
.......
United
States
3,851,000
3,954,977
21,489,702
Communications
Equipment
2.6%
c
Lumentum
Holdings,
Inc.
,
Senior
Note
,
144A,
0.375
%
,
3/15/32
.
United
States
10,262,000
13,622,805
Construction
&
Engineering
0.6%
Fluor
Corp.
,
Senior
Note
,
1.125
%
,
8/15/29
.................
United
States
2,575,000
3,320,462
Consumer
Finance
0.0%
†
c
SoFi
Technologies,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
10/15/26
United
States
210
299
Consumer
Staples
Distribution
&
Retail
1.0%
Chefs'
Warehouse,
Inc.
(The)
,
Senior
Note
,
2.375
%
,
12/15/28
..
United
States
3,555,000
5,255,001
Diversified
REITs
1.2%
c
Digital
Realty
Trust
LP
,
Senior
Note
,
144A,
1.875
%
,
11/15/29
...
United
States
5,823,000
6,156,076
Diversified
Telecommunication
Services
0.7%
c
AST
SpaceMobile,
Inc.
,
Senior
Bond
,
144A,
2
%
,
1/15/36
......................
United
States
1,423,000
1,517,985
Senior
Note
,
144A,
2.375
%
,
10/15/32
..................
United
States
1,419,000
2,007,176
3,525,161
Electric
Utilities
4.6%
NextEra
Energy
Capital
Holdings,
Inc.
,
Senior
Note
,
3
%
,
3/01/27
United
States
8,905,000
11,171,323
PPL
Capital
Funding,
Inc.
,
Senior
Note
,
2.875
%
,
3/15/28
......
United
States
6,130,000
6,959,082
Southern
Co.
(The)
,
Senior
Note
,
4.5
%
,
6/15/27
............
United
States
5,720,000
6,363,500
24,493,905
Electrical
Equipment
3.1%
Bloom
Energy
Corp.
,
Senior
Note
,
3
%
,
6/01/29
...........................
United
States
2,135,000
13,712,678
c
Senior
Note
,
144A,
Zero
Cpn.,
11/15/30
................
United
States
2,819,000
2,872,972
16,585,650
Electronic
Equipment,
Instruments
&
Components
3.3%
c
Avnet,
Inc.
,
Senior
Note
,
144A,
1.75
%
,
9/01/30
.............
United
States
3,708,000
3,663,504
Putnam
Convertible
Securities
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Convertible
Bonds
(continued)
Electronic
Equipment,
Instruments
&
Components
(continued)
Itron,
Inc.
,
Senior
Note
,
1.375
%
,
7/15/30
..................
United
States
5,849,000
$
6,039,093
c
Mirion
Technologies,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
10/01/31
United
States
2,518,000
3,128,615
OSI
Systems,
Inc.
,
Senior
Note
,
2.25
%
,
8/01/29
............
United
States
3,159,000
4,987,271
17,818,483
Entertainment
3.1%
Liberty
Media
Corp.-Liberty
Formula
One
Corp.
,
Senior
Note
,
2.25
%
,
8/15/27
...................................
United
States
4,845,000
6,211,290
Live
Nation
Entertainment,
Inc.
,
Senior
Note
,
3.125
%
,
1/15/29
........................
United
States
2,927,000
4,422,404
c
Senior
Note
,
144A,
2.875
%
,
1/15/30
...................
United
States
5,402,000
5,750,429
16,384,123
Financial
Services
2.6%
c
Affirm
Holdings,
Inc.
,
Senior
Note
,
144A,
0.75
%
,
12/15/29
.....
United
States
5,019,000
5,460,672
Global
Payments,
Inc.
,
Senior
Note
,
1.5
%
,
3/01/31
..........
United
States
2,922,000
2,642,949
Shift4
Payments,
Inc.
,
Senior
Note
,
0.5
%
,
8/01/27
...........
United
States
5,765,000
5,678,525
13,782,146
Food
Products
1.0%
Post
Holdings,
Inc.
,
Senior
Note
,
2.5
%
,
8/15/27
.............
United
States
4,930,000
5,427,930
Ground
Transportation
2.3%
c
Lyft,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
9/15/30
............
United
States
2,423,000
2,831,276
Uber
Technologies,
Inc.
,
2028
,
Senior
Note
,
0.875
%
,
12/01/28
..................
United
States
4,520,000
6,592,420
c
Senior
Secured
Note
,
144A,
Zero
Cpn.,
5/15/28
..........
United
States
2,713,000
2,867,641
12,291,337
Health
Care
Equipment
&
Supplies
1.6%
Dexcom,
Inc.
,
Senior
Note
,
0.375
%
,
5/15/28
...............
United
States
2,940,000
2,668,785
c
Merit
Medical
Systems,
Inc.
,
Senior
Note
,
144A,
3
%
,
2/01/29
...
United
States
2,815,000
3,397,705
TransMedics
Group,
Inc.
,
Senior
Note
,
1.5
%
,
6/01/28
........
United
States
1,480,000
2,357,566
8,424,056
Health
Care
Providers
&
Services
0.3%
c
Hims
&
Hers
Health,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
5/15/30
United
States
1,302,000
1,315,671
Health
Care
REITs
2.1%
c
Welltower
OP
LLC
,
Senior
Note
,
144A,
2.75
%
,
5/15/28
....................
United
States
2,965,000
5,654,255
Senior
Note
,
144A,
3.125
%
,
7/15/29
...................
United
States
3,820,000
5,676,520
11,330,775
Hotels,
Restaurants
&
Leisure
2.4%
c
DoorDash,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
5/15/30
.......
United
States
6,840,000
7,568,460
c
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
0.75
%
,
9/15/30
..........
United
States
5,385,000
5,189,794
12,758,254
Household
Durables
1.1%
Meritage
Homes
Corp.
,
Senior
Note
,
1.75
%
,
5/15/28
.........
United
States
5,716,000
5,722,213
Household
Products
0.9%
Spectrum
Brands,
Inc.
,
Senior
Note
,
3.375
%
,
6/01/29
........
United
States
5,119,000
4,777,307
Putnam
Convertible
Securities
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Convertible
Bonds
(continued)
IT
Services
2.7%
c
Cloudflare,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
6/15/30
.......
United
States
4,608,000
$
5,775,812
Snowflake,
Inc.
,
Senior
Note
,
Zero
Cpn.,
10/01/27
...........
United
States
4,618,000
8,293,928
14,069,740
Leisure
Products
0.5%
Peloton
Interactive,
Inc.
,
Senior
Note
,
5.5
%
,
12/01/29
........
United
States
1,435,000
2,728,653
Life
Sciences
Tools
&
Services
0.8%
Repligen
Corp.
,
Senior
Note
,
1
%
,
12/15/28
................
United
States
4,085,000
4,348,482
Machinery
0.6%
c
JBT
Marel
Corp.
,
Senior
Note
,
144A,
0.375
%
,
9/15/30
........
United
States
3,080,000
2,879,800
Media
0.7%
Cable
One,
Inc.
,
Senior
Note
,
1.125
%
,
3/15/28
.............
United
States
4,150,000
3,506,750
Metals
&
Mining
0.7%
c
MP
Materials
Corp.
,
Senior
Note
,
144A,
3
%
,
3/01/30
.........
United
States
1,125,000
3,407,062
Multi-Utilities
1.2%
CMS
Energy
Corp.
,
Senior
Note
,
3.375
%
,
5/01/28
...........
United
States
5,570,000
6,140,925
Office
REITs
0.9%
c
Boston
Properties
LP
,
Senior
Note
,
144A,
2
%
,
10/01/30
.......
United
States
4,853,000
4,772,925
Oil,
Gas
&
Consumable
Fuels
1.6%
c
Centrus
Energy
Corp.
,
Senior
Note
,
144A,
Zero
Cpn.,
8/15/32
..
United
States
3,355,000
5,972,739
c
Energy
Fuels,
Inc.
,
Senior
Note
,
144A,
0.75
%
,
11/01/31
......
United
States
2,133,000
2,753,215
8,725,954
Personal
Care
Products
0.3%
c
,d
Oddity
Finance
LLC
,
Senior
Note
,
144A,
2
.65
%
,
6/15/30
......
United
States
2,000,000
1,772,500
Professional
Services
1.5%
Parsons
Corp.
,
Senior
Note
,
2.625
%
,
3/01/29
..............
United
States
3,345,000
3,825,008
c
Planet
Labs
PBC
,
Senior
Note
,
144A,
0.5
%
,
10/15/30
........
United
States
3,145,000
4,403,000
8,228,008
Semiconductors
&
Semiconductor
Equipment
4.0%
c
Camtek
Ltd.
,
Senior
Note
,
144A,
Zero
Cpn.,
9/15/30
.........
Israel
3,031,000
3,799,358
Microchip
Technology,
Inc.
,
Senior
Note
,
0.75
%
,
6/01/30
......
United
States
3,384,000
3,301,092
MKS,
Inc.
,
Senior
Note
,
1.25
%
,
6/01/30
...................
United
States
4,104,000
4,935,060
c
Nova
Ltd.
,
Senior
Note
,
144A,
Zero
Cpn.,
9/15/30
...........
Israel
3,631,000
4,657,065
ON
Semiconductor
Corp.
,
Senior
Note
,
0.5
%
,
3/01/29
........
United
States
4,339,000
4,037,439
c
Semtech
Corp.
,
Senior
Note
,
144A,
Zero
Cpn.,
10/15/30
......
United
States
711,000
722,731
21,452,745
Software
17.1%
Box,
Inc.
,
Senior
Note
,
1.5
%
,
9/15/29
....................
United
States
4,661,000
4,709,940
c
Cipher
Mining,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
10/01/31
...
United
States
3,714,000
5,255,310
c
,d
Commvault
Systems,
Inc.
,
Senior
Note
,
144A,
1
.87
%
,
9/15/30
..
United
States
3,068,000
2,802,618
c
Core
Scientific,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
6/15/31
....
United
States
2,705,000
3,452,256
c
CyberArk
Software
Ltd.
,
Senior
Note
,
144A,
Zero
Cpn.,
6/15/30
.
United
States
4,900,000
5,725,650
c
Datadog,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
12/01/29
.......
United
States
5,097,000
5,418,111
c
Guidewire
Software,
Inc.
,
Senior
Note
,
144A,
1.25
%
,
11/01/29
..
United
States
8,240,000
9,735,560
c
IREN
Ltd.
,
Senior
Note
,
144A,
Zero
Cpn.,
7/01/31
...........
Australia
3,770,000
3,979,235
c
Life360,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
6/01/30
.........
United
States
3,112,000
4,357,578
Putnam
Convertible
Securities
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Convertible
Bonds
(continued)
Software
(continued)
c
MARA
Holdings,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
3/01/30
...
United
States
5,250,000
$
5,418,000
c
Nebius
Group
NV
,
Senior
Note
,
144A,
1
%
,
9/15/30
......................
Netherlands
1,787,000
2,281,999
Senior
Note
,
144A,
2.75
%
,
9/15/32
....................
Netherlands
1,579,000
2,014,015
c
Nutanix,
Inc.
,
Senior
Note
,
144A,
0.5
%
,
12/15/29
............
United
States
4,934,000
5,448,123
Progress
Software
Corp.
,
Senior
Note
,
3.5
%
,
3/01/30
........
United
States
2,518,000
2,566,472
c
,d
Rubrik,
Inc.
,
Senior
Note
,
144A,
0
.63
%
,
6/15/30
............
United
States
1,859,000
1,806,019
Strategy,
Inc.
,
Senior
Note
,
0.875
%
,
3/15/31
........................
United
States
829,000
1,140,290
c,d
Senior
Note
,
144A,
0
.29
%
,
3/01/30
....................
United
States
11,270,000
11,129,126
c
Terawulf,
Inc.
,
Senior
Note
,
144A,
1
%
,
9/01/31
......................
United
States
2,584,000
3,850,160
Senior
Note
,
144A,
Zero
Cpn.,
5/01/32
.................
United
States
817,000
846,820
Tyler
Technologies,
Inc.
,
Senior
Note
,
0.25
%
,
3/15/26
........
United
States
4,055,000
4,229,365
c
Unity
Software,
Inc.
,
Senior
Note
,
144A,
Zero
Cpn.,
3/15/30
...
United
States
1,180,000
1,538,425
Vertex,
Inc.
,
Senior
Note
,
0.75
%
,
5/01/29
.................
United
States
3,276,000
3,271,905
90,976,977
Specialty
Retail
2.5%
Burlington
Stores,
Inc.
,
1.25
%
,
12/15/27
..................
United
States
3,085,000
4,420,805
Wayfair,
Inc.
,
Senior
Note
,
3.25
%
,
9/15/27
.................
United
States
5,350,000
9,170,501
13,591,306
Technology
Hardware,
Storage
&
Peripherals
3.1%
Seagate
HDD
Cayman
,
Senior
Note
,
3.5
%
,
6/01/28
..........
United
States
5,279,000
16,535,808
Total
Convertible
Bonds
(Cost
$
398,553,850
)
.................................
475,011,822
Total
Long
Term
Investments
(Cost
$
446,367,475
)
.............................
527,211,388
a
Short
Term
Investments
1.3%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Management
Investment
Companies
1.2%
e,f
Putnam
Short
Term
Investment
Fund
,
Class
P
,
4.371
%
.......
United
States
6,496,342
6,496,342
Total
Management
Investment
Companies
(Cost
$
6,496,342
)
...................
6,496,342
Putnam
Convertible
Securities
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
Short
Term
Investments
(continued)
a
a
Country
Shares
a
Value
a
a
a
a
a
a
g
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
Money
Market
Funds
0.1%
e,f
Putnam
Cash
Collateral
Pool,
LLC
,
4.362
%
................
United
States
660,800
$
660,800
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
660,800
)
...........................................................
660,800
Total
Short
Term
Investments
(Cost
$
7,157,142
)
...............................
7,157,142
a
Total
Investments
(Cost
$
453,524,617
)
100.5
%
................................
$534,368,530
Other
Assets,
less
Liabilities
(
0.5
)
%
.........................................
(3,021,457)
Net
Assets
100.0%
.........................................................
$531,347,073
a
a
a
See
Abbreviations
on
page
27
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2025.
See
Note
1(c).
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
October
31,
2025,
the
aggregate
value
of
these
securities
was
$229,983,794,
representing
43.3%
of
net
assets.
d
The
rate
shown
represents
the
yield
at
period
end.
e
See
Note
3(g)
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
g
See
Note
1(c)
regarding
securities
on
loan.
Putnam
Convertible
Securities
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
October
31,
2025
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
Putnam
Convertible
Securities
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$446,367,475
Cost
-
Non-controlled
affiliates
(Note
3
g
)
........................................................
7,157,142
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$
648,480
)
...................................
$527,211,388
Value
-
Non-controlled
affiliates
(Note
3
g
)
.......................................................
7,157,142
Cash
....................................................................................
714
Receivables:
Capital
shares
sold
........................................................................
43,372
Dividends
and
interest
.....................................................................
1,414,870
Prepaid
expenses
..........................................................................
155,689
Total
assets
..........................................................................
535,983,175
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
2,819,000
Capital
shares
redeemed
...................................................................
439,938
Management
fees
.........................................................................
271,361
Administrative
fees
........................................................................
1,455
Distribution
fees
..........................................................................
84,951
Transfer
agent
fees
........................................................................
85,248
Trustees'
fees
and
expenses
.................................................................
156,976
Payable
upon
return
of
securities
loaned
(Note
1
c
)
..................................................
660,800
Accrued
expenses
and
other
liabilities
...........................................................
116,373
Total
liabilities
.........................................................................
4,636,102
Net
assets,
at
value
.................................................................
$531,347,073
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$433,278,932
Total
distributable
earnings
(losses)
.............................................................
98,068,141
Net
assets,
at
value
.................................................................
$531,347,073
Putnam
Convertible
Securities
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
October
31,
2025
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
Putnam
Convertible
Securities
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$372,699,842
Shares
outstanding
........................................................................
12,916,024
Net
asset
value
per
share
a
,b
..................................................................
$28.86
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94
.25
%
)
b
................................
$30.62
Class
C:
Net
assets,
at
value
.......................................................................
$5,384,700
Shares
outstanding
........................................................................
191,501
Net
asset
value
and
maximum
offering
price
per
share
a
,b
............................................
$28.12
Class
I:
Net
assets,
at
value
.......................................................................
$23,789
Shares
outstanding
........................................................................
823
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$28.91
Class
R:
Net
assets,
at
value
.......................................................................
$2,580,859
Shares
outstanding
........................................................................
90,146
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$28.63
Class
R6:
Net
assets,
at
value
.......................................................................
$19,062,192
Shares
outstanding
........................................................................
661,156
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$28.83
Class
Y:
Net
assets,
at
value
.......................................................................
$131,595,691
Shares
outstanding
........................................................................
4,566,030
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$28.82
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Putnam
Convertible
Securities
Fund
Financial
Statements
Statement
of
Operations
for
the
year
ended
October
31,
2025
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
Putnam
Convertible
Securities
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$4,095,493
Non-controlled
affiliates
(Note
3
g
)
.............................................................
554,081
Interest:
Unaffiliated
issuers
........................................................................
7,252,237
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
(168,892)
Non-controlled
affiliates
(Note
3
g
)
.............................................................
182,889
Total
investment
income
...................................................................
11,915,808
Expenses:
Management
fees
(Note
3
a
)
...................................................................
3,086,272
Administrative
fees
(Note
3
b
)
..................................................................
9,300
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
893,620
Class
C
................................................................................
58,370
Class
R
................................................................................
11,617
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
366,603
Class
C
................................................................................
6,023
Class
I
.................................................................................
3
Class
R
................................................................................
2,373
Class
R6
...............................................................................
9,584
Class
Y
................................................................................
130,737
Custodian
fees
(Note
4
)
......................................................................
9,259
Reports
to
shareholders
fees
..................................................................
50,665
Registration
and
filing
fees
....................................................................
91,024
Professional
fees
...........................................................................
112,812
Trustees'
fees
and
expenses
(Note
3
f
)
...........................................................
21,190
Other
....................................................................................
10,353
Total
expenses
.........................................................................
4,869,805
Expense
reductions
(Note
4
)
...............................................................
(32,853)
Net
expenses
.........................................................................
4,836,952
Net
investment
income
................................................................
7,078,856
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
41,664,908
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
32,292,222
Net
realized
and
unrealized
gain
(loss)
............................................................
73,957,130
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$81,035,986
Putnam
Convertible
Securities
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
Putnam
Convertible
Securities
Fund
Year
Ended
October
31,
2025
Year
Ended
October
31,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$7,078,856
$7,844,089
Net
realized
gain
(loss)
.................................................
41,664,908
(6,050,494)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
32,292,222
113,391,197
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
81,035,986
115,184,792
Distributions
to
shareholders:
Class
A
.............................................................
(10,180,312)
(4,743,523)
Class
B
.............................................................
-
(863)
Class
C
.............................................................
(121,137)
(45,865)
Class
I
.............................................................
(703)
(330)
Class
R
.............................................................
(61,195)
(27,189)
Class
R6
............................................................
(606,277)
(385,917)
Class
Y
.............................................................
(3,954,167)
(2,318,049)
Total
distributions
to
shareholders
..........................................
(14,923,791)
(7,521,736)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(33,029,083)
(41,900,462)
Class
B
.............................................................
-
(354,022)
Class
C
.............................................................
(1,909,225)
(2,944,892)
Class
I
.............................................................
-
80
Class
R
.............................................................
(336,894)
(122,485)
Class
R6
............................................................
(5,437,144)
(7,813,886)
Class
Y
.............................................................
(10,278,851)
(79,815,337)
Total
capital
share
transactions
............................................
(50,991,197)
(132,951,004)
Net
increase
(decrease)
in
net
assets
...................................
15,120,998
(25,287,948)
Net
assets:
Beginning
of
year
.......................................................
516,226,075
541,514,023
End
of
year
...........................................................
$531,347,073
$516,226,075
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
18
franklintempleton.com
Annual
Report
1.
Organization
and
Significant
Accounting
Policies
Putnam
Convertible
Securities
Fund (Fund)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company.
The Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
-
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Fund
offers six
classes
of
shares:
Class
A,
Class
C,
Class
I,
Class
R,
Class
R6
and
Class
Y.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Effective
September
5,
2024,
all
Class B
shares
were
converted
to
Class
A.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Fund's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund's
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund's
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
and
certain
preferred
securities
generally
trade
in
the OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
19
franklintempleton.com
Annual
Report
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
the
Putnam
Cash
Collateral
Pool,
LLC,
a
limited
liability
company,
an
affiliate
of
Putnam
Management. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statement of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
20
franklintempleton.com
Annual
Report
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
Securities
on
loan
outstanding
at
period
end,
if
any,
are
listed
in
the
Fund's
Schedule
of
Investments.
d.
Income
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2025, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the Fund
invests.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividend
income
is recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributions
from
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the Fund's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the
Fund against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Fund
that
have
not
yet
occurred.
Currently,
the Fund
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Securities
Lending
(continued)
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
21
franklintempleton.com
Annual
Report
2.
Shares
of
Beneficial
Interest
At
October
31,
2025,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Year
Ended
October
31,
2025
Year
Ended
October
31,
2024
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
606,101
$16,083,053
310,267
$7,310,432
Shares
issued
in
reinvestment
of
distributions
..........
353,950
9,494,760
190,187
4,421,399
Shares
redeemed
...............................
(2,209,305)
(58,606,896)
(2,297,604)
(53,632,293)
Net
increase
(decrease)
..........................
(1,249,254)
$(33,029,083)
(1,797,150)
$(41,900,462)
Class
B
Shares:
*
Shares
sold
...................................
-
$-
-
$-
Shares
issued
in
reinvestment
of
distributions
..........
-
-
39
863
Shares
redeemed
...............................
-
-
(15,773)
(354,885)
Net
increase
(decrease)
..........................
-
$-
(15,734)
$(354,022)
Class
C
Shares:
Shares
sold
...................................
38,257
$994,128
92,948
$2,118,632
Shares
issued
in
reinvestment
of
distributions
..........
4,396
114,492
1,880
42,485
Shares
redeemed
a
..............................
(117,305)
(3,017,845)
(224,106)
(5,106,009)
Net
increase
(decrease)
..........................
(74,652)
$(1,909,225)
(129,278)
$(2,944,892)
Class
I
Shares:
Shares
sold
...................................
-
$-
-
$-
Shares
issued
in
reinvestment
of
distributions
..........
-
-
4
80
Net
increase
(decrease)
..........................
-
$-
4
$80
Class
R
Shares:
Shares
sold
...................................
13,660
$363,149
12,855
$299,224
Shares
issued
in
reinvestment
of
distributions
..........
2,294
61,195
1,177
27,189
Shares
redeemed
...............................
(29,581)
(761,238)
(19,388)
(448,898)
Net
increase
(decrease)
..........................
(13,627)
$(336,894)
(5,356)
$(122,485)
Class
R6
Shares:
Shares
sold
...................................
109,623
$2,896,135
112,337
$2,590,762
Shares
issued
in
reinvestment
of
distributions
..........
6,050
162,141
6,975
160,981
Shares
redeemed
...............................
(321,958)
(8,495,420)
(455,526)
(10,565,629)
Net
increase
(decrease)
..........................
(206,285)
$(5,437,144)
(336,214)
$(7,813,886)
Class
Y
Shares:
Shares
sold
...................................
733,628
$19,179,248
777,970
$18,072,040
Shares
issued
in
reinvestment
of
distributions
..........
130,196
3,489,400
87,137
2,017,066
Shares
redeemed
...............................
(1,239,459)
(32,947,499)
(4,307,039)
(99,904,443)
Net
increase
(decrease)
..........................
(375,635)
$(10,278,851)
(3,441,932)
$(79,815,337)
*
Effective
September
5,
2024,
the
Fund
has
terminated
its
Class
B
shares.
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
22
franklintempleton.com
Annual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and trustees
of
the Fund are
also
officers
and/or directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
Putnam
Management
a
management
fee
(based
on
the
Fund's
average
net
assets
and
computed
and
paid
monthly)
at
annual
rates
that
may
vary
based
on
the
average
of
the
aggregate
net
assets
of
all
open-end
mutual
funds
sponsored
by
Putnam
Management
(including
open-end
funds
managed
by
affiliates
of
Putnam
Management
that
have
been
deemed
to
be
sponsored
by
Putnam
Management
for
this
purpose)
(excluding
net
assets
of
such
funds
that
are
invested
in,
or
that
are
invested
in
by,
other
such
funds
to
the
extent
necessary
to
avoid
"double
counting"
of
those
assets).
Such
annual
rates
may
vary
as
follows:
For
the
year
ended
October
31,
2025,
the
gross
effective
investment
management
fee
rate
was 0.603%
of
the
Fund's
average daily
net
assets.
Under
a
subadvisory
agreement,
Advisers
provides
portfolio
management
and
certain
other
advisory
and
related
services
to
the
Fund.
With
respect
to
the
portfolio
management
services,
Putnam
Management
pays
a
fee
to
Advisers
equal
to
50%
of
the
net
investment
advisory
fee
payable
by
the
Fund
to
Putnam
Management
and
with
respect
to
the
other
advisory
and
related
services, Putnam
Management pays
a
fee
to Advisers
based
on
the
costs
of
Advisers
in
providing
these
services
to
the
Fund.
These
fees
are
not
an
additional
expense
to
the
Fund.
Under
a
subadvisory
agreement,
FTIML
provides
subadvisory
services
to
the
Fund.
The
subadvisory
fee
is
paid by Putnam
Management
based
on
the
average
net
assets
managed
by
FTIML,
and
is
not
an
additional
expense
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
Putnam
Management,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by Putnam
Management
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
Subsidiary
Affiliation
Putnam
Investment
Management,
LLC
(Putnam
Management)
Investment
manager
Franklin
Advisers,
Inc.
(Advisers)
Subadvisor
Franklin
Templeton
Investment
Management
Limited
(FTIML)
Subadvisor
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Putnam
Investor
Services,
Inc.
(PSERV)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.780%
of
the
first
$5
billion,
0.730%
of
the
next
$5
billion,
0.680%
of
the
next
$10
billion,
0.630%
of
the
next
$10
billion,
0.580%
of
the
next
$50
billion,
0.560%
of
the
next
$50
billion,
0.550%
of
the
next
$100
billion
and
0.545%
of
any
excess
thereafter.
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
23
franklintempleton.com
Annual
Report
The
Fund
reimburses
Putnam
Management
an
allocated
amount
for
the
compensation
and
related
expenses
of
certain
officers
of
the
Fund
and
their
staff
who
provide
administrative
services
to
the
Fund.
The
aggregate
amount
of
all
such
reimbursements
is
determined
annually
by
the
Trustees.
c.
Distribution
Fees
The
Fund
has
adopted
distribution
plans
(the
Plans)
with
respect
to
the
following
share
classes
pursuant
to
Rule
12b-1
under
the
1940
Act.
The
purpose
of
the
Plans
is
to
compensate
Distributors
for
services
provided
and
expenses
incurred
in
distributing
shares
of
the
Fund.
The
Plans
provide
payments
by
the
Fund
to
Distributors
at
an
annual
rate
of
up
to
the
following
amounts
(Maximum
%)
of
the
average
net
assets
attributable
to
each
class.
The
Trustees
have
approved
payment
by
the
Fund
at
the
following
annual
rate
(Approved
%)
of
the
average
net
assets
attributable
to
each
class.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
year:
e.
Transfer
Agent
Fees
PSERV,
an
affiliate
of
Putnam
Management,
provides
investor
servicing
agent
functions
to
the
Fund.
PSERV
received
fees
for
investor
servicing
for
Class
A,
Class
C,
Class
R and
Class
Y
shares
that
included
(1)
a
per
account
fee
for
each
direct
and
underlying
non-defined
contribution
account
(retail
account)
of
the
Fund;
(2)
a
specified
rate
of
the
Fund's
assets
attributable
to
defined
contribution
plan
accounts;
and
(3)
a
specified
rate
based
on
the
average
net
assets
in
retail
accounts.
PSERV
has
agreed
that
the
aggregate
investor
servicing
fees
for
each
Fund's
retail
and
defined
contribution
accounts
for
these
share
classes
will
not
exceed
an
annual
rate
of
0.25%
of
the
Fund's
average
assets
attributable
to
such
accounts.
Class
I
shares
paid
a
monthly
fee
based
on
the
average
net
assets
of
Class
I
shares
at
an
annual
rate
of
0.01%.
Class
R6
shares
paid
a
monthly
fee
based
on
the
average
net
assets
of
Class
R6
shares
at
an
annual
rate
of
0.05%.
f.
Trustee
Fees
The
Fund
has
adopted
a
Trustee
Fee
Deferral
Plan
(the
Deferral
Plan)
which
allows
the
Trustees to
defer
the
receipt
of
all
or
a
portion
of
Trustees'
fees
payable
from
July
1,
1995
through
December
31,
2023.
The
deferred
fees
remain
invested
in
certain
Putnam
funds
until
distribution
in
accordance
with
the
Deferral
Plan.
The
Fund
has
adopted
an
unfunded
noncontributory
defined
benefit
pension
plan
(the
Pension
Plan)
covering
all
Trustees
of
the
Fund
who
have
served
as
a
Trustee
for
at
least
five
years
and
were
first
elected
prior
to
2004.
Benefits
under
the
Pension
Plan
are
equal
to
50%
of
the
Trustee's
average
annual
attendance
and
retainer
fees
for
the
three
years
ended
December
31,
Maximum
%
Approved
%
Class
A
...................................................................
0.35%
0.25%
Class
C
...................................................................
1.00%
1.00%
Class
R
...................................................................
1.00%
0.50%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$15,675
CDSC
retained
..............................................................................
$562
3.
Transactions
with
Affiliates
(continued)
b.
Administrative
Fees
(continued)
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
24
franklintempleton.com
Annual
Report
2005.
The
retirement
benefit
is
payable
during
a
Trustee's
lifetime,
beginning
the
year
following
retirement,
for
the
number
of
years
of
service
through
December
31,
2006.
Pension
expense
for
the
Fund
is
included
in
the
Trustees' fees
and
expenses
in
the
Statement
of
Operations.
Accrued
pension
liability
is
included
in
Payable
for
Trustees' fees
and
expenses
in
the
Statement
of
Assets
and
Liabilities.
The
Trustees
have
terminated
the
Pension
Plan
with
respect
to
any
Trustee
first
elected
after
2003.
g.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
"Controlled
Affiliate"
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund's
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees,
if
applicable, paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
October
31,
2025,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
h.
Waiver
and
Expense
Reimbursements
Putnam
Management has
contractually
agreed,
through
February
28,
2027,
to
waive
fees
and/or
reimburse
the
Fund's
expenses
to
the
extent
necessary
to
limit
the
cumulative
expenses
of
the
Fund,
exclusive
of
brokerage,
interest,
taxes,
investment-related
expenses,
extraordinary
expenses,
acquired
fund
fees
and
expenses
and
payments
under
the
Fund's
investor
servicing
contract,
investment
management
contract
and
distribution
plans,
on
a
fiscal
year-to-date
basis
to
an
annual
rate
of
0.20%
of
the
Fund's
average
net
assets
over
such
fiscal
year-to-date
period.
4.
Expense
Offset
Arrangement
The Fund has entered
into
arrangements
with PSERV
and its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
transfer
agent
and
custodian
fees,
respectively.
During
the
year
ended
October
31,
2025,
the
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
Effective March
10, 2025,
earned
credits
on
custodian
fees,
if
any,
are
recognized
as
income.
aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a
a
a
a
a
a
a
a
Putnam
Convertible
Securities
Fund
Non-Controlled
Affiliates
Dividends
Putnam
Short
Term
Investment
Fund,
Class
P,
4.371%
......
$11,525,184
$226,268,596
$(231,297,438)
$-
$-
$6,496,342
6,496,342
$554,081
Non-Controlled
Affiliates
Income
from
securities
loaned
Putnam
Cash
Collateral
Pool,
LLC,
4.362%
.............
$10,033,400
$96,742,362
$(106,114,962)
$-
$-
$660,800
660,800
$182,889
Total
Affiliated
Securities
...
$21,558,584
$323,010,958
$(337,412,400)
$-
$-
$7,157,142
$736,970
3.
Transactions
with
Affiliates
(continued)
f.
Trustee
Fees
(continued)
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
25
franklintempleton.com
Annual
Report
5.
Income
Taxes
The
tax
character
of
distributions
paid
during
the
years
ended
October
31,
2025
and
2024,
was
as
follows:
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
During
the
year
ended
October
31,
2025,
the
Fund
utilized
$21,880,517
of
capital
loss
carryforwards.
At
October
31,
2025,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation),
undistributed
ordinary
income
and
undistributed
long
term
capital
gains for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales
and
convertible
securities.
The
Fund
utilized
a
tax
accounting
practice
to
treat
a
portion
of
the
proceeds
from
capital
shares
redeemed
as
a
distribution
from
realized
capital
gains.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
year
ended
October
31,
2025,
aggregated
$436,630,597 and
$481,236,146,
respectively.
At
October
31,
2025,
in
connection
with
securities
lending
transactions,
the
Fund
loaned
equity
investments
and
received
$660,800
of
cash
collateral.
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statement
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
7.
Credit
Facility
Effective
January
31,
2025,
the
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers)
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.995
billion
(Global
Credit
Facility)
which
matures
on
January
30,
2026.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
2025
2024
Distributions
paid
from:
Ordinary
income
..........................................................
$14,923,791
$7,521,736
Cost
of
investments
..........................................................................
$454,359,761
Unrealized
appreciation
........................................................................
$88,832,707
Unrealized
depreciation
........................................................................
(8,823,938)
Net
unrealized
appreciation
(depreciation)
..........................................................
$80,008,769
Distributable
earnings:
Undistributed
ordinary
income
...................................................................
$5,429,755
Undistributed
long
term
capital
gains
..............................................................
12,629,619
Total
distributable
earnings
.....................................................................
$18,059,374
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
26
franklintempleton.com
Annual
Report
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
reporting
period,
the
Fund
did
not
use
the
Global
Credit
Facility.
Prior
to
January
31,
2025,
the
Fund
participated,
along
with
other
Putnam
funds,
in
a
$320
million
syndicated
unsecured
committed
line
of
credit,
provided
by
State
Street
($160
million)
and
JPMorgan
($160
million),
and
a
$235.5
million
unsecured
uncommitted
line
of
credit,
provided
by
State
Street.
Borrowings
may
have
been
made
for
temporary
or
emergency
purposes,
including
the
funding
of
shareholder
redemption
requests
and
trade
settlements.
Interest
was
charged
to
the
Fund
based
on
the
Fund's
borrowings.
A
closing
fee
equal
to
0.04%
of
the
committed
line
of
credit
and
0.04%
of
the
uncommitted
line
of
credit
was
paid
by
the
participating
funds
and
a
$75,000
fee
was
paid
by
the
participating
funds
to
State
Street
as
agent
of
the
syndicated
committed
line
of
credit.
In
addition,
a
commitment
fee
of
0.21%
per
annum
on
any
unutilized
portion
of
the
committed
line
of
credit
was
allocated
to
the
participating
funds
based
on
their
relative
net
assets
and
paid
quarterly.
During
the
reporting
period,
the
Fund
had
no
borrowings
against
these
arrangements.
8.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
-
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
-
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
-
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
October
31,
2025,
in
valuing
the
Fund's assets carried
at
fair
value,
is
as
follows:
9.
Operating
Segments
The Fund operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
A
management
group
of
the
Fund's
Investment
manager serves
as
the
Chief
Operating
Decision
Maker
("CODM")
and
is
responsible
for
evaluating
the
Fund's
operating
results
and
allocating
resources
in
accordance
with
the
Fund's
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the financial
statements.
Level
1
Level
2
Level
3
Total
Putnam
Convertible
Securities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
.........................
$
3,190,324
$
-
$
-
$
3,190,324
Convertible
Preferred
Stocks
................
49,009,242
-
-
49,009,242
Convertible
Bonds
.......................
-
475,011,822
-
475,011,822
Short
Term
Investments
...................
6,496,342
660,800
-
7,157,142
Total
Investments
in
Securities
...........
$58,695,908
$475,672,622
$-
$534,368,530
7.
Credit
Facility
(continued)
Putnam
Convertible
Securities
Fund
Notes
to
Financial
Statements
27
franklintempleton.com
Annual
Report
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations,
along
with
the
related
notes
to
the financial
statements.
The Schedule
of
Investments
provides
details
of
the Fund's investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the Financial
Highlights.
10.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Selected
Portfolio
REIT
Real
Estate
Investment
Trust
9.
Operating
Segments
(continued)
Putnam
Convertible
Securities
Fund
Report
of
Independent
Registered
Public
Accounting
Firm
28
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
and
Shareholders
of
Putnam
Convertible
Securities
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Putnam
Convertible
Securities
Fund
(the
"Fund")
as
of
October
31,
2025,
the
related
statement
of
operations
for
the
year
ended
October
31,
2025,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
October
31,
2025,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
October
31,
2025
(collectively
referred
to
as
the
"financial
statements").
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
October
31,
2025,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
October
31,
2025
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
October
31,
2025
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund's
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund's
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
October
31,
2025
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/
PricewaterhouseCoopers
LLP
Boston,
Massachusetts
December
18,
2025
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Putnam
Funds
family
of
funds
since
at
least
1957.
We
have
not
been
able
to
determine
the
specific
year
we
began
serving
as
auditor.
Putnam
Convertible
Securities
Fund
Tax
Information
(unaudited)
29
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
October
31,
2025:
Pursuant
to:
Amount
Reported
Long-Term
Capital
Gain
Dividends
Distributed
§852(b)(3)(C)
$1,924,000
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$3,375,188
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$3,402,440
Section
163(j)
Interest
Earned
§163(j)
$6,224,282
Putnam
Convertible
Securities
Fund
30
franklintempleton.com
Annual
Report
Putnam
Convertible
Securities
Fund
Trustee
approval
of
management
contracts
(unaudited)
Consideration
of
your
fund's
management
and
sub-advisory
contracts
At
their
meeting
on
June
27,
2025,
the
Board
of
Trustees
("Board"
or
the
"Trustees")
of
your
fund,
including
all
of
the
Trustees
who
are
not
"interested
persons"
(as
this
term
is
defined
in
the
Investment
Company
Act
of
1940,
as
amended
(the
"1940
Act"))
of
the
Putnam
mutual
funds
and
exchange-traded
funds
(collectively,
the
"funds")
(the
"Independent
Trustees")
approved
the
continuance
of
a
management
contract
with
Putnam
Investment
Management,
LLC
(the
"Advisor"),
a
subadvisory
agreement
between
the
Advisor
and
Franklin
Templeton
Investment
Management
Limited
("FTIML"),
and
a
subadvisory
agreement
between
the
Advisor
and
Franklin
Advisers,
Inc.
("Franklin
Advisers"
and
together
with
FTIML,
the
"Subadvisors")
(collectively,
the
"Management
Contracts").
The
Advisor,
FTIML,
and
Franklin
Advisers
are
each
direct
or
indirect,
wholly-
owned
subsidiaries
of
Franklin
Resources,
Inc.
(together
with
its
subsidiaries,
"Franklin
Templeton").
General
conclusions
The
Board
oversees
the
management
of
each
fund
and,
as
required
by
law,
determines
annually
whether
to
approve
the
continuance
of
your
fund's
management
contract
with
the
Advisor
and
the
sub-advisory
contract
with
respect
to
your
fund
between
the
Advisor
and
each
Subadvisor.
Because
the
Subadvisors
are
affiliates
of
the
Advisor
and
the
Advisor
remains
fully
responsible
for
all
services
provided
by
the
Subadvisors,
the
Trustees
did
not
attempt
to
evaluate
the
Subadvisors
as
separate
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Remuneration
to
officers
is
paid
by
the
Fund's
investment
manager
according
to
the
terms
of
the
agreement.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Putnam
Convertible
Securities
Fund
31
franklintempleton.com
Annual
Report
entities.
All
references
to
the
Advisor
describing
the
Board's
considerations
should
be
deemed
to
include
references
to
the
applicable
Subadvisor
as
necessary
or
appropriate
in
the
context.
The
Board,
with
the
assistance
of
its
Contract
Committee,
requests
and
evaluates
all
information
it
deems
reasonably
necessary
under
the
circumstances
in
connection
with
its
annual
contract
review.
The
Contract
Committee
consists
solely
of
Independent
Trustees.
At
the
outset
of
the
review
process,
the
Board's
independent
staff
and
independent
legal
counsel,
as
defined
in
Rule
0-1(a)
(6)
under
the
1940
Act
(their
"independent
legal
counsel"),
considered
any
possible
changes
to
the
annual
contract
review
materials
furnished
to
the
Contract
Committee
in
prior
years
and,
as
applicable,
identified
those
changes
to
the
Advisor.
Following
these
discussions
and
in
consultation
with
the
Contract
Committee,
the
Independent
Trustees'
independent
legal
counsel
submitted
an
initial
request
that
the
Advisor
and
its
affiliates
furnish
specified
information,
together
with
any
additional
information
the
Advisor
considered
relevant,
to
the
Contract
Committee.
Over
the
course
of
several
months
ending
in
June
2025,
the
Contract
Committee
met
on
a
number
of
occasions
with
representatives
of
the
Advisor,
and
separately
in
executive
session,
to
consider
the
information
that
the
Advisor
provided,
including
information
provided
in
response
to
supplemental
requests
submitted
by
independent
legal
counsel.
Throughout
this
process,
the
Contract
Committee
was
assisted
by
the
Board's
independent
staff
and
by
independent
legal
counsel.
At
the
Board's
June
2025
meeting,
the
Contract
Committee
met
in
executive
session
to
discuss
and
consider
its
recommendations
with
respect
to
the
continuance
of
the
Management
Contracts.
At
that
meeting,
the
Contract
Committee
also
met
in
executive
session
with
the
other
Independent
Trustees
to
review
a
summary
of
the
process
undertaken
by
the
Contract
Committee
and
key
information
that
the
Contract
Committee
considered
in
the
course
of
its
review.
The
Contract
Committee
then
presented
its
written
report,
which
summarized
the
key
factors
that
the
Committee
had
considered
and
set
forth
its
recommendations.
The
Contract
Committee
recommended,
and
the
Independent
Trustees
approved,
the
continuance
of
your
fund's
Management
Contracts,
effective
July
1,
2025.
In
considering
the
continuance
of
the
Management
Contracts,
the
Board
took
into
account
a
number
of
factors,
including:
1.
That
the
fee
schedule
in
effect
for
your
fund
represented
reasonable
compensation
in
light
of
the
nature
and
quality
of
the
services
being
provided
to
the
fund,
the
fees
paid
by
competitive
funds,
the
costs
incurred
by
the
Advisor
in
providing
services
to
the
fund
and
the
application
of
certain
reductions
and
waivers
noted
below;
2.
That
the
fee
schedule
in
effect
for
your
fund
represented
an
appropriate
sharing
between
fund
shareholders
and
the
Advisor
of
any
economies
of
scale
that
may
exist
in
the
management
of
the
fund
at
current
asset
levels;
3.
That
the
funds
benefited,
and
were
expected
to
continue
to
benefit,
from
Franklin
Templeton's
large
retail
and
institutional
global
distribution
capabilities
and
significant
network
of
intermediary
relationships,
which
may
provide
additional
opportunities
for
the
funds
to
increase
assets
and
reduce
the
impact
of
expenses
by
spreading
them
over
a
larger
asset
base;
4.
Potential
benefits
to
shareholders
of
the
funds
that
could
result
from
the
alignment
of
certain
fund
features
and
shareholder
benefits
with
those
of
other
funds
sponsored
by
the
Advisor
and
its
affiliates
and
access
to
a
broader
array
of
investment
opportunities;
and
5.
The
financial
strength,
reputation,
experience
and
resources
of
Franklin
Templeton
and
its
investment
advisory
subsidiaries.
These
conclusions
were
based
on
a
comprehensive
consideration
of
all
information
provided
to
the
Trustees
and
were
not
the
result
of
any
single
factor.
Some
of
the
factors
that
figured
particularly
in
the
Trustees'
deliberations
and
how
the
Trustees
considered
these
factors
are
described
below,
although
individual
Trustees
may
have
evaluated
the
information
presented
differently,
giving
different
weights
to
various
factors.
It
is
also
important
to
recognize
that
the
management
arrangements
for
your
fund
and
the
other
funds
are
the
result
of
many
years
of
review
and
discussion
between
the
Independent
Trustees
and
management,
occurring
both
in
connection
with
formal
contract
reviews
as
well
as
throughout
the
year
and
that
the
Trustees'
Putnam
Convertible
Securities
Fund
32
franklintempleton.com
Annual
Report
conclusions
may
be
based,
in
part,
on
their
consideration
of
fee
arrangements
in
previous
years.
For
example,
with
certain
exceptions
primarily
involving
newer
funds
(including
the
exchange-traded
funds)
or
repositioned
funds,
the
current
fee
arrangements
under
the
vast
majority
of
the
funds'
management
contracts
were
first
implemented
at
the
beginning
of
2010
following
extensive
review
by
the
Contract
Committee
and
discussions
with
management,
as
well
as
approval
by
shareholders.
Management
fee
schedules
and
total
expenses
The
Trustees
reviewed
the
management
fee
schedules
in
effect
for
all
funds,
including
fee
levels
and
any
breakpoints.
Under
its
management
contract,
your
fund
has
the
benefit
of
breakpoints
in
its
management
fee
schedule
that
provide
shareholders
with
reduced
fee
levels
as
assets
under
management
of
other
mutual
funds
sponsored
by
the
applicable
Advisor
(or
that
have
been
deemed
to
be
sponsored
by
the
Advisor
for
the
purpose
of
the
management
fee
calculation)
increase.
The
Trustees
also
reviewed
the
total
expenses
of
each
fund,
recognizing
that
in
most
cases
management
fees
represented
the
major,
but
not
the
sole,
determinant
of
total
costs
to
fund
shareholders.
(Two
mutual
funds
and
each
of
the
exchange-traded
funds
have
implemented
(or,
in
the
case
of
ten
municipal
income
funds
that
are
converting
into
exchange-traded
funds,
will
implement)
so-
called
"all-in"
or
unitary
management
fees
covering
substantially
all
routine
fund
operating
costs.)
In
reviewing
fees
and
expenses,
the
Trustees
generally
focus
their
attention
on
material
changes
in
circumstances
-
for
example,
changes
in
assets
under
management,
changes
in
a
fund's
investment
strategy,
changes
in
the
Advisor's
operating
costs
or
profitability,
or
changes
in
competitive
practices
in
the
fund
industry
-
that
suggest
that
consideration
of
fee
changes
might
be
warranted.
The
Trustees
concluded
that
the
circumstances
did
not
indicate
that
changes
to
the
management
fee
schedule
for
your
fund
would
be
appropriate
at
this
time.
As
in
the
past,
the
Trustees
also
focused
on
the
competitiveness
of
each
fund's
total
expense
ratio.
The
Trustees,
the
Advisor
and
the
funds'
investor
servicing
agent,
Putnam
Investor
Services,
Inc.
("PSERV"),
have
implemented
expense
limitations
that
were
in
effect
during
your
fund's
fiscal
year
ending
in
2024.
These
expense
limitations
were:
(i)
a
contractual
expense
limitation
applicable
to
specified
mutual
funds
(including
your
fund)
of
25
basis
points
on
investor
servicing
fees
and
expenses
and
(ii)
a
contractual
expense
limitation
applicable
to
specified
mutual
funds
(including
your
fund)
of
20
basis
points
on
so-called
"other
expenses"
(i.e.,
all
expenses
exclusive
of
management
fees,
distribution
fees,
investor
servicing
fees,
investment-related
expenses,
interest,
taxes,
brokerage
commissions,
acquired
fund
fees
and
expenses
and
extraordinary
expenses).
These
expense
limitations
attempt
to
maintain
competitive
expense
levels
for
the
funds.
Most
funds
(including
your
fund)
had
sufficiently
low
expenses
that
these
expense
limitations
were
not
operative
during
their
fiscal
years
ending
in
2024.
The
Advisor
and
PSERV
have
agreed
to
maintain
these
expense
limitations
until
at
least
February
28,
2027.
The
Advisor
and
PSERV's
commitment
to
these
expense
limitation
arrangements,
which
were
intended
to
support
an
effort
to
have
the
mutual
fund
expenses
meet
competitive
standards,
was
an
important
factor
in
the
Trustees'
decision
to
approve
the
continuance
of
your
fund's
Management
Contracts.
The
Trustees
reviewed
comparative
fee
and
expense
information
for
a
custom
group
of
competitive
funds
selected
by
Broadridge
Financial
Solutions,
Inc.
("Broadridge").
This
comparative
information
included
your
fund's
percentile
ranking
for
effective
management
fees
and
total
expenses
(excluding
any
applicable
12b-1
fees),
which
provides
a
general
indication
of
your
fund's
relative
standing.
In
the
custom
peer
group,
your
fund
ranked
in
the
second
quintile
in
effective
management
fees
(determined
for
your
fund
and
the
other
funds
in
the
custom
peer
group
assuming
the
same
fund
asset
size
for
your
fund
and
the
other
funds
in
the
custom
peer
group
and
the
applicable
contractual
management
fee
schedule)
and
in
the
third
quintile
in
total
expenses
(excluding
any
applicable
12b-1
fees)
as
of
December
31,
2024.
The
first
quintile
represents
the
least
expensive
funds
and
the
fifth
quintile
the
most
expensive
funds.
The
fee
and
expense
data
reported
by
Broadridge
as
of
December
31,
2024
reflected
the
most
recent
fiscal
year-end
data
available
in
Broadridge's
database
at
that
time.
Putnam
Convertible
Securities
Fund
33
franklintempleton.com
Annual
Report
In
connection
with
their
review
of
fund
management
fees
and
total
expenses,
the
Trustees
also
reviewed
the
costs
of
the
services
provided
and
the
profits
realized
by
the
Advisor
and
its
affiliates
from
their
contractual
relationships
with
the
funds.
This
information
included
trends
in
revenues,
expenses
and
profitability
of
the
Advisor
and
its
affiliates
relating
to
the
investment
management,
investor
servicing
and
distribution
services
provided
to
the
funds,
as
applicable.
In
this
regard,
the
Trustees
also
reviewed
an
analysis
of
the
revenues,
expenses
and
profitability
of
the
Advisor
and
its
affiliates,
allocated
on
a
fund-by-fund
basis,
with
respect
to
(as
applicable)
the
funds'
management,
distribution
and
investor
servicing
contracts.
For
each
fund,
the
analysis
presented
information
about
revenues,
expenses
and
profitability
in
2024
for
each
of
the
applicable
agreements
separately
and
for
the
agreements
taken
together
on
a
combined
basis.
The
Trustees
concluded
that,
at
current
asset
levels,
the
fee
schedules
in
place
for
each
of
the
funds,
including
the
fee
schedule
for
your
fund,
represented
reasonable
compensation
for
the
services
being
provided
and
represented
an
appropriate
sharing
between
fund
shareholders
and
the
Advisor
of
any
economies
of
scale
as
may
exist
in
the
management
of
the
funds
at
that
time.
The
information
examined
by
the
Trustees
in
connection
with
their
annual
contract
review
for
the
funds
included
information
regarding
services
provided
and
fees
charged
by
the
Advisor
and
certain
affiliates
to
other
clients
in
similar
asset
categories,
including
other
1940
Act
funds
advised
by
the
Advisor
but
overseen
by
a
board
of
trustees
other
than
the
Board,
sub-advised
U.S.
mutual
funds,
exchange-traded
funds,
other
U.S.
products
(such
as
collective
investment
trusts,
private
funds,
and
separately
managed
and
institutional
accounts),
non-U.S.
funds,
and
other
non-U.S.
products.
This
information
included,
for
products
that
are
managed
by
the
same
portfolio
team
in
a
similar
asset
category
to
those
of
the
funds,
comparisons
of
the
fees
charged
to
other
clients,
by
category,
with
fees
charged
to
the
funds,
as
well
as
a
detailed
assessment
of
the
differences
in
the
services
provided
to
these
clients
as
compared
to
the
services
provided
to
the
funds.
The
Trustees
observed
that
the
differences
in
fee
rates
between
these
clients
and
the
funds
are
by
no
means
uniform
when
examined
by
individual
asset
classes,
suggesting
that
differences
in
the
pricing
of
investment
management
services
to
these
types
of
clients
may
reflect,
among
other
things,
historical
competitive
forces
operating
in
separate
marketplaces,
the
characteristics
of
different
clients,
the
particulars
of
different
fee
structures,
factors
unique
to
specific
market
segments,
and
the
distinct
risks
and
costs
associated
with
providing
services
to
different
clients.
The
Trustees
considered
the
fact
that
in
many
cases
fee
rates
across
different
asset
classes
are
higher
on
average
for
1940
Act-registered
funds
than
for
other
clients,
and
the
Trustees
also
considered
the
differences
between
the
services
that
the
Advisor
provides
to
the
funds
and
those
that
it
provides
to
its
other
clients.
The
Trustees
did
not
rely
on
these
fee
comparisons
to
any
significant
extent
in
concluding
that
the
management
fees
paid
by
your
fund
are
reasonable.
Investment
performance
The
quality
of
the
investment
process
provided
by
the
Advisor
represented
a
major
factor
in
the
Trustees'
evaluation
of
the
quality
of
services
provided
by
the
Advisor
under
your
fund's
Management
Contracts.
The
Trustees
were
assisted
in
their
review
of
the
Advisor's
investment
process
and
performance
by
the
work
of
the
investment
oversight
committees
of
the
Trustees
and
the
full
Board,
which
meet
on
a
regular
basis
with
individual
portfolio
managers
and
with
senior
investment
management
of
the
Advisor
throughout
the
year.
The
Trustees
concluded
that
the
Advisor
generally
provides
a
high-quality
investment
process
-
based
on
the
experience
and
skills
of
the
individuals
assigned
to
the
management
of
fund
portfolios,
the
resources
made
available
to
them
and
in
general
the
Advisor's
ability
to
attract
and
retain
high-quality
personnel
-
but
also
recognized
that
this
does
not
guarantee
favorable
investment
results
for
every
fund
in
every
time
period.
The
Trustees
considered
that,
in
the
aggregate,
peer-relative
and
benchmark-relative
fund
performance
was
strong
in
2024
against
a
constructive
yet
complex
investing
environment.
The
S&P
500
was
up
25%
in
2024,
but
significant
concentration
of
returns
among
large
cap
and
technology
stocks
and
periods
of
volatility
posed
challenges
in
the
market.
The
Bloomberg
Aggregate
fixed
income
index
was
up
slightly
over
1%
amidst
many
moving
pieces,
with
the
Federal
Reserve
cutting
the
Effective
Federal
Funds
rate
from
5.25%
at
year-end
2023
to
4.25%
at
year-end
2024,
with
three
cuts
in
the
latter
part
of
the
year,
while
also
trying
to
manage
inflation
concerns.
Ten-year
Treasury
yields
ended
2024
at
4.6%
up
from
3.9%
at
year-end
2023.
Corporate
earnings
and
employment
figures
continued
to
generally
show
strength
during
the
year,
while
geopolitical
tensions
were
closely
watched.
Putnam
Convertible
Securities
Fund
34
franklintempleton.com
Annual
Report
For
the
one-year
period
ended
December
31,
2024,
the
Trustees
noted
that
the
funds,
on
an
asset-weighted
basis,
ranked
in
the
27th
percentile
of
their
peers
as
determined
by
Lipper
Inc.
("Lipper")
and,
on
an
asset-weighted
basis,
outperformed
their
benchmarks
by
3.0%
gross
of
fees
over
the
one-year
period.
The
Committee
also
noted
that
the
funds'
aggregate
performance
over
longer-term
periods
continued
to
be
strong,
with
the
funds,
on
an
asset-weighted
basis,
ranking
in
the
20th,
22nd
and
20th
percentiles
of
their
Lipper
peers
over
the
three-year,
five-year
and
ten-year
periods
ended
December
31,
2024,
respectively.
The
Trustees
further
noted
that
the
funds,
in
the
aggregate,
outperformed
their
benchmarks
on
a
gross
basis
for
each
of
the
three-year,
five-year
and
ten-year
periods.
The
Trustees
also
considered
the
Morningstar
Inc.
ratings
assigned
to
the
funds
and
that
52
funds
were
rated
four
or
five
stars
at
the
end
of
2024,
which
represented
an
increase
of
seven
funds
year-over-year.
The
Trustees
also
considered
that
25
funds
were
five-star
rated
at
the
end
of
2024,
which
was
also
a
year-
over-year
increase
of
seven
funds.
The
Board
noted,
however,
the
disappointing
investment
performance
of
some
funds
for
periods
ended
December
31,
2024
and
considered
information
provided
by
the
Advisor
regarding
the
factors
contributing
to
the
underperformance
and,
where
relevant,
actions
being
taken
to
improve
the
performance
of
these
particular
funds.
The
Trustees
indicated
their
intention
to
continue
to
monitor
the
performance
of
those
funds.
For
purposes
of
the
Trustees'
evaluation
of
the
funds'
investment
performance,
the
Trustees
generally
focus
on
a
competitive
industry
ranking
of
each
fund's
total
net
return
over
a
one-year,
three-year
and
five-year
period.
For
a
number
of
funds
with
relatively
unique
investment
mandates
for
which
the
Advisor
informed
the
Trustees
that
meaningful
competitive
performance
rankings
are
not
considered
to
be
available,
the
Trustees
evaluated
performance
based
on
their
total
gross
and
net
returns
and
comparisons
of
those
returns
to
the
returns
of
selected
investment
benchmarks.
In
the
case
of
your
fund,
the
Trustees
considered
that
its
class
A
share
cumulative
total
return
performance
at
net
asset
value
was
in
the
following
quartiles
of
its
Lipper
peer
group
(Lipper
Convertible
Securities
Funds)for
the
one-year,
three-year
and
five-year
periods
ended
December
31,
2024
(the
first
quartile
representing
the
best-performing
funds
and
the
fourth
quartile
the
worst-performing
funds):
Over
the
one-year,
three-year
and
five-year
periods
ended
December
31,
2024,
there
were
75,
71
and
69
funds,
respectively,
in
your
fund's
Lipper
peer
group.
(When
considering
performance
information,
shareholders
should
be
mindful
that
past
performance
is
not
a
guarantee
of
future
results.)
The
Trustees
noted
that
the
Advisor
had
made
internal
promotions
and
other
portfolio
management
assignment
changes
in
2024
to
strengthen
its
investment
teams
providing
services
to
the
funds.
Brokerage
and
soft-dollar
allocations;
distribution
and
investor
servicing
The
Trustees
considered
various
potential
benefits
that
the
Advisor
may
receive
in
connection
with
the
services
it
provides
under
the
management
contract
with
your
fund.
These
include
benefits
related
to
brokerage
allocation
and
the
use
of
soft
dollars,
whereby
a
portion
of
the
commissions
paid
by
a
fund
for
brokerage
may
be
used
to
acquire
research
services
that
are
expected
to
be
useful
to
the
Advisor
in
managing
the
assets
of
the
fund
and
of
other
clients.
Subject
to
policies
approved
by
the
Trustees,
soft
dollars
generated
by
these
means
may
be
used
to
acquire
brokerage
and
research
services
(including
proprietary
executing
broker
research,
third-party
research
and
market
data)
that
enhance
the
Advisor's
investment
capabilities
and
supplement
the
Advisor's
internal
research
efforts.
The
Trustees
indicated
their
continued
intent
to
monitor
regulatory
and
industry
developments
in
this
area
with
the
assistance
of
their
Contract
Committee.
In
addition,
with
the
assistance
of
their
Contract
Committee,
the
Trustees
indicated
their
continued
intent
to
monitor
the
allocation
of
the
funds'
brokerage
in
order
to
ensure
that
the
principle
of
seeking
best
price
and
execution
remains
paramount
in
the
portfolio
trading
process.
One-year
period
Three-year
period
Five-year
period
2nd
2nd
2nd
Putnam
Convertible
Securities
Fund
35
franklintempleton.com
Annual
Report
The
Advisor
may
also
receive
benefits
from
payments
that
funds
make
to
the
Advisor
for
distribution
services
and
investor
services.
In
conjunction
with
the
review
of
your
fund's
management
and
sub-advisory
contracts,
the
Trustees
reviewed
your
fund's
investor
servicing
agreement
with
PSERV
and
its
distributor's
contract
and
distribution
plans
with
Franklin
Distributors,
LLC
("Franklin
Distributors"),
both
of
which
are
affiliates
of
the
Advisor.
The
Trustees
concluded
that
the
fees
payable
by
the
mutual
funds
to
PSERV
and
Franklin
Distributors
for
such
services
were
fair
and
reasonable
in
relation
to
the
nature
and
quality
of
such
services,
the
fees
paid
by
competitive
funds
and
the
costs
incurred
by
PSERV
and
Franklin
Distributors
in
providing
such
services.
Furthermore,
the
Trustees
were
of
the
view
that
the
investor
services
provided
by
PSERV
were
required
for
the
operation
of
the
mutual
funds,
and
that
they
were
of
a
quality
at
least
equal
to
those
provided
by
other
providers.
38903-AFSOI
12/25
©
2025
Franklin
Templeton.
All
rights
reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
| ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 14. | PURCHASES OF SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | The Registrant's principal executive officer and principal financial officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
| (b) | During the period covered by this report, the Registrant transitioned to a new third-party service provider who performs certain accounting and administrative services for the Registrant that are subject to Franklin Templeton's oversight. |
| ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| ITEM 19. | EXHIBITS. |
Exhibit 99.CODE ETH
Exhibit 99.CERT
Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.
| Putnam Convertible Securities Fund | ||
| By: | /s/ Jonathan S. Horwitz | |
| Jonathan S. Horwitz | ||
| Principal Executive Officer | ||
| Date: | December 29, 2025 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Jonathan S. Horwitz | |
| Jonathan S. Horwitz | ||
| Principal Executive Officer | ||
| Date: | December 29, 2025 | |
| By: | /s/ Jeffrey White | |
| Jeffrey White | ||
| Principal Financial Officer | ||
| Date: | December 29, 2025 |
Putnam Convertible Securities Fund published this content on December 29, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on December 29, 2025 at 17:51 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]