Fund Description

The fund seeks long-term capital growth by investing at least 80% of its net assets in foreign securities, that are predominantly equity securities of companies located outside of the U.S., including developing markets.

Strategy Statement

"Templeton Foreign Fund has a bottom-up, long-term investment strategy that goes to great lengths in search of undervalued stocks outside of the United States."

Management

Tucker Scott, CFA

Tucker Scott, CFA®

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2007
Norman Boersma, CFA

Norman Boersma, CFA®

  • Joined Franklin Templeton in 1991
  • Managed Fund Since 2011
Herbert J Arnett Jr.

Herbert J Arnett Jr.

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2017
Christopher James Peel, CFA

Christopher James Peel, CFA®

  • Joined Franklin Templeton in 2007
  • Managed Fund Since 2017
Heather Arnold, CFA

Heather Arnold, CFA®

  • Joined Franklin Templeton in 1997
  • Managed Fund Since 2014

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Templeton utilizes a disciplined, consistent approach based on three timeless principles of investing:

Value

Our flexible approach is applied within a disciplined framework and seeks to identify companies trading at large discounts to their business value.

Patience

Our long-term focus gives us a framework to take advantage of price volatility to reveal potential long-term investment opportunities. Patience allows for potential long-term value recognition.

Bottom-Up

Our portfolio management process seeks to buy pessimism and sell optimism. We build portfolios spanning regions and sectors made up of securities identified through this process.

Investment Process

  1. Identify Potential Bargains
    • Experienced analysts
    • Focus on global industry sectors
    • Quantitative and qualitative assessment
    • Identify material ESG issues
  2. In-Depth Fundamental Analysis
    • Five-year financial forecasts
    • Management/supplier/competitive evaluation
    • Recommendation of Bargain List candidates
  3. Research Team Evaluation
    • Presentation of investment thesis
    • Investment debate and critique: "Devil's Advocate"
    • ESG "Devil's Advocate"
    • Director of Research approval
  4. Bottom-Up Portfolio Construction
    • Investment parameters
    • Industry and sector framework
    • Build and diversify portfolio
    • Long-term approach: 20% historical turnover4
  5. Portfolio Monitoring and Risk Management
    • Ongoing valuation analysis
    • Ongoing ESG monitoring
    • Disciplined sell methodology
    • Weekly peer review and risk analytics

Rating

Overall Morningstar Rating As of 11/30/2018

Rating Category: Foreign Large Value

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 11/30/2018

Years Ratings Funds
in category
3
3 Stars
274
5
2 Stars
223
10
4 Stars
150

Morningstar Style Box As of09/30/2018

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