Franklin Mutual Financial Services Fund

Fund Description

The fund seeks capital appreciation, which may occasionally be short term, with income as a secondary goal, investing at least 80% of its net assets in securities of financial services companies. It focuses primarily on undervalued equity securities which may include foreign securities and, to a significantly lesser extent, merger arbitrage securities and securities of distressed companies.

Strategy Statement

"We look for financial-services companies in sectors such as banks, brokerage firms, and insurance companies to uncover companies that appear to be trading at a discount to their intrinsic worth. "

Andrew Sleeman, CFA®


Andrew Sleeman, CFA

Andrew Sleeman, CFA®

  • Joined Franklin Templeton in 2007
  • Managed Fund Since 2009
Andrew B. Dinnhaupt, CFA

Andrew B. Dinnhaupt, CFA®

  • Joined Franklin Templeton in 2011
  • Managed Fund Since 2013
Luis Hernandez

Luis Hernandez

  • Joined Franklin Templeton in 2002
  • Managed Fund Since 2019


Investment Process

Bottom-Up Value Approach

  • We seek to buy companies at a significant discount to their intrinsic value.
  • We seek to understand and limit downside risk.
  • We think and act like owners of the business.
  • Undervalued stocks comprise the bulk of our portfolios.
  • We search for catalysts to unlock value:
    • Corporate restructuring
    • Spin-offs
    • Share buybacks
    • Our own initiatives


Overall Morningstar Rating As of 05/31/2020

Rating Category: Financial

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 [further-information] As of 05/31/2020

Years Ratings Funds
in category
2 Stars
2 Stars
3 Stars

Morningstar Style Box

We do not publish a style box for this fund.

Strategy, Benefits, Results


At Franklin Mutual Series, we focus on recognizing value that other investors might miss.

Our goal is to deliver solid, risk-adjusted returns year in and year out. Over the last 60 years, Franklin Mutual Series’ consistent, deep-value approach has benefited shareholders with long-term investment horizons.

  • Opportunistic Value Investors. Our core investments are in undervalued stocks with viable catalysts that we believe will change the way the market views their true worth.
  • Think and Act Like Company Owners. We won’t hesitate to become activist investors if our shareholders’ interests need to be protected.
  • Strive To Reduce Risk. Our unique strategy has historically provided the fund with lower volatility than the overall market and has enabled us to deliver strong results over the long term.


  • Financial Services Exposure. We aim to take advantage of a broad range of opportunities particular to the financial services industry.
  • A Record of Lower Volatility.
  • Activism. Managers go the extra mile and will influence company management to help unlock that company's full potential for the benefit of our shareholders.

Selling The Fund

  1. Point out the fund's record of lower volatility, as measured by standard deviation, when compared to its benchmark S&P 500 Financials Index.

  2. Highlight the fund’s broad exposure to various types of financial services companies.

  3. Emphasize the fund's risk-conscious approach to investing.