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Mutual Financial Services Fund  – 
FinSvA : Newspaper symbol TFSIX : NASDAQ symbol Sector : Fund Category
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Morningstar RatingTM (as of 07/31/2010) Rating Category Number of Funds in Category
Overall 3 Years 5 Years 10 Years 3 Years 5 Years 10 Years
3 3 4 Financial 108 99 65

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Portfolio1 : View Details
Fund Description2

The Fund invests at least 80% of its net assets in securities of financial services companies that the manager believes are available at market prices less than their intrinsic value.

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Morningstar Style Box™
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for this fund.
 
Net Assets (millions) 221.90
Class A as of July 31, 2010
Portfolio Managers
Andrew Sleeman, CFA®
Joined Mutual Series in 2007
Managed Fund since 2009
Fund Highlights
as of July 31, 2010
Top 10 Holdings
White Mountains Insurance Group Inc. 2.90%
Symetra Financial Corp. 2.80%
CIT Group Inc. 2.40%
Deutsche Boerse AG 2.40%
Oslo Bors VPS Holding ASA 2.30%
Enstar Group Limited 2.00%
Intesa Sanpaolo SpA 2.00%
Link Real Estate Investment Trust 2.00%
ACE Ltd. 1.90%
Zurich Financial Services AG 1.80%
Asset Mix
as of July 31, 2010
(updated monthly)
Performance : View Details
Performance data quoted represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares.
Expense Ratio and Sales Charge Information

Expense Ratio: 1.54%
Max. Initial Sales Charge: 5.75%
CDSC: 0.00%

Hypothetical $10,000 Investment as of 06/30/2010
$10,000 invested in the fund at inception, with all dividend and capital gain distributions reinvested, including sales charges, would be worth:
$23,403.00
Distributions : View Details  
Distribution amounts may be estimates.  
Dividend Frequency  
Semiannually  
Most Recent Fund Distributions
Distribution Amount
Income distribution per share $0.046900
Distribution Schedule
Record date 09/02/10
Ex-Dividend date 09/03/10
Payable date 09/08/10
Reinvestment date 09/03/10
Fund Facts  
Inception date4 08/19/97
Fund number 479
CUSIP number 354 026 106
Minimum initial investment $1,000
Max. initial sales charge 5.75%
CDSC 0.00%
Expense ratio
as of May 01, 2010 (updated annually)		 1.54%
12b - 1 fees5 0.29%
Beta6
as of June 30, 2010 (updated quarterly)		 0.45
Fund Prices : Historical Prices as of 09/09/2010
Daily prices are the most current available.
NAV7 (Net Asset Value)
$12.29
NAV change (+/-) $0.09
POP8 (Public Offering Price)
$13.04
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Important Legal Information

Value securities may not increase in price as anticipated or may decline further in value. Investing in a single-sector fund, such as Mutual Financial Services Fund, involves special risks, including greater sensitivity to economic, political or regulatory developments impacting the sector. In addition, the fund invests in foreign securities whose risks include currency fluctuations, and economic and political uncertainties. The fund's investments in smaller company stocks carry an increased risk of price fluctuation, particularly over the short term. The fund may also invest in companies engaged in mergers, reorganizations or liquidations, which involve special risks as pending deals may not be completed on time or on favorable terms, as well as lower-rated bonds, which entail higher credit risk. Please consult the prospectus for a more detailed description of the fund's risks.

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total Returns With Sales Charge: returns reflect the deduction of the stated sales charges. Total returns, distribution rate, and yields reflect any applicable expense reductions, without which the results for those impacted funds would have been lower.

©2010 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results.

For more information on any of our funds, contact your financial advisor or download a free prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

Footnotes

  1. Portfolio holdings are subject to change.
  2. All of the funds are subject to certain risks. Generally, investments offering potential for higher returns are accompanied by a higher degree of risk. Stocks and other equities representing an ownership interest in a corporation have historically outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Bond prices are affected by interest rate changes. Bond prices, and thus a bond fund's share price, generally move in the opposite direction of interest rates. As the price of bonds in a fund adjust to a rise in interest rates, the fund's share price may decline. High-yield, lower-rated (junk) bonds generally have greater price swings and higher default risks. Foreign investing, especially in emerging markets, has additional risks such as currency and market volatility and political and social instability. These and other risks pertaining to specific funds, such as those involving investments in specialized industry sectors, such as the technology sector, which has been among the most volatile sectors in the market, or use of complex securities, are discussed in each fund's prospectus.
  3. After-tax average annual total returns represent the average change in value of an investment on an annualized basis. Returns are calculated using the highest individual federal income tax rates; state and local taxes are not considered. Your actual after-tax returns depend on your particular tax situation and may differ from those shown. The before shares sold calculation assumes taxes are paid on fund distributions (dividends and capital gains) but does not reflect taxes that may be incurred upon sale or exchange of shares. The after shares sold calculation also adjusts for taxes due if the fund investment is sold at the end of the measurement period.
  4. For performance reporting purposes, the inception date for Classes A, R, Z and Advisor Class shares of all Franklin Templeton Funds is the date of effectiveness of the fund's registration statement or the first day the fund commenced operations. For Classes B and C shares, except as subsequently noted, the inception date is the first day the fund commenced offering such shares. Franklin Income Fund Class B uses the inception date of the old Class B shares, renamed Class B1. For Mutual Series Funds and Franklin International Small Cap Growth and Franklin Large Cap Equity Funds, the inception date for Classes A, B, C and R shares is the funds' oldest class', Z or Advisor, inception date.
  5. Represents the maximum amount of Rule 12b-1 distribution and service fees the Fund may pay.
  6. A measure of the fund's volatility relative to the market, as represented by the MSCI World Financial Index. A beta greater than 1.00 indicates volatility greater than the market. Based on the 3-years ended as of the date of the calculation.
  7. The amount per share you would receive if you sold shares that day.
  8. Purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.

For U.S. residents only.