COLLEGE PLANNING | ESTATE PLANNING | INVESTING | PORTFOLIO SPOTLIGHT | REAL ESTATE | RETIREMENT | TAX PLANNING
Fidelity Advisor Convertible Securities Fund
TICKER FICVX
ASSETS
$ 2.2 billion
PERFORMANCE YTD 1 yr. 3 yr. 5 yr. 10 yr. 15 yr. 6.71 % 22.60 % 14.96 % 6.11 % 13.67 % 9.44 %
TOP 5 HOLDINGS
Boeing Co. 6 % PRF CONVERT 15 / 10 / 2027; Western Digital Corp. 3 % 11 / 15 / 28; Wells Fargo & Co 7.5 % Perp Conv Pfd Shs A / L; Welltower OP LLC 2.75 % 05 / 15 / 28 144A; Super Micro Computer Inc. CONV 2.25 %
CONTACT INFO 866-544-1742( RIAs), 800-544-9999( broker-dealers); fidelity. com
SECTOR ALLOCATION( As a % of portfolio)
Information Technology 32.44 % Healthcare 11.93 % Industrials 10.66 % Financials 10.34 % Consumer Discretionary 10.03 % Utilities 8.72 % Communication Services 5.81 % Energy 3.39 % Real Estate 3.08 % Materials 1.86 % Consumer Staples 0.79 %
Performance and asset numbers as of 2 / 11 / 26. Holdings and portfolio stats as of 12 / 31 / 25. Standard deviation versus the ICE BofA All U. S. Convertibles Index as of 1 / 31 / 26. Distribution yield as of 2 / 10 / 26. Performance and expense ratio figures are for the institutional share class. Sources: Fidelity Investments and Morningstar
Spotlight On An Overlooked Asset Class
The Fidelity Advisor Convertible Securities Fund is a standout in its field. By Jeff Schlegel
CONVERTIBLE SECURITIES ARE OFTEN OVERLOOKED by investors, but given the category’ s long-term track record and risk-reward profile, maybe they shouldn’ t be.
“ It’ s not top of mind for a lot of investors. When one looks at the merits of this asset class, I think it deserves extra attention,” says Rick Gandhi, co-portfolio manager at the Fidelity Advisor Convertible Securities Fund.
Gandhi’ s opinion is biased, of course, but he does have a front row view of the action because he and his partner, Adam Kramer, operate one of the standout funds in this space.
While convertible securities can include preferred stocks, the vast majority are bonds— hybrid vehicles with the characteristics of both fixed income and equities. These bonds contain call options that allow them to be converted into a predetermined number of common stock shares from the issuing company. This gives these securities equity-like sensitivity so investors can participate in the company’ s upside if the stock appreciates. Meanwhile, the fixed-income coupon provides some downside protection if the stock stumbles.
“ With the typical convertible you’ ll give up the first 25 % or so of equity price appreciation,” Gandhi says.“ In return for that you get a coupon that typically is smaller than [ a traditional corporate ] bond coupon.”
44 | FINANCIAL ADVISOR MAGAZINE | MARCH / APRIL 2026 WWW. FA-MAG. COM