Fund Description

The fund seeks long-term capital appreciation by investing predominantly in the equity securities of smaller international companies that the managers believe have the potential to generate attractive returns with lower downside risk. The smaller international companies do not exceed $5 billion in market capitalization or the highest market capitalization in the MSCI EAFE Small Cap Index, whichever is greater, at the time of purchase.

Strategy Statement

"Our team seeks small cap stocks we believe are trading below their normal valuation, and that have catalysts in place that may spur a return to normal valuation."


Paul D. Ehrlichman

Paul D. Ehrlichman

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2021
Sean Bogda, CFA

Sean Bogda, CFA®

  • Joined Franklin Templeton in 1993
  • Managed Fund Since 2021
Safa R. Muhtaseb, CFA

Safa R. Muhtaseb, CFA®

  • Joined Franklin Templeton in 2004
  • Managed Fund Since 2021
Grace Su

Grace Su

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2021


The investment team's philosophy is constructed around three ideals:

Price: Stocks selling at unusually cheap levels (vs. always cheap) relative to itself, sector and country.
Quality: Leading franchises with strong balance sheets.
Value: Mispricing based on underlying assets and cash flows versus current market price relative to its dynamic intrinsic value.

We believe these are critical to building a portfolio of international small cap stocks with long-term growth potential that are both attractively priced and well run.


Overall Morningstar Rating As of 08/31/2021

Rating Category: Foreign Small/Mid Blend

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 08/31/2021

Years Ratings Funds
in category
1 Stars
1 Stars
1 Stars

Morningstar Style Box As of07/31/2021

Strategy, Benefits, Results


  • We seek to identify contrarian value opportunities with significant unrecognized growth potential.
  • Our managers use quantitative and fundamental analyses to find companies capable of long-term appreciation.
  • Portfolio construction uses a team approach to ensure that each member's expert insights are applied to all potential investment ideas.


  • Small-Cap Expertise: Management team has a long-tenured track record as international value investors.
  • Small Cap Exposure: Adds a level of diversification to a domestic core equities portfolio.
  • Blended Approach: Incorporates both quantitative and fundamental research to find undervalued companies with a combination of quality and long-term growth potential.