Fund Description

The fund seeks capital appreciation, with income as a secondary goal, by investing at least 80% of its net assets in the securities of European companies. It focuses mainly on undervalued equity securities and, to a lesser extent, distressed securities and merger arbitrage opportunities.

Strategy Statement

"We are continually looking for opportunities the market is overlooking. With intensive research and a focus on identifying catalysts to drive stock price appreciation, we believe our unconstrained approach to investing allows us to deliver value for our shareholders."

Katrina Dudley, CFA®

Management

Katrina Dudley, CFA

Katrina Dudley, CFA®

  • Joined Franklin Templeton in 2002
  • Managed Fund Since 2007
Mandana Hormozi

Mandana Hormozi

  • Joined Franklin Templeton in 2003
  • Managed Fund Since 2018
Todd Ostrow

Todd Ostrow

  • Joined Franklin Templeton in 2013
  • Managed Fund Since 2019

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

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

Rating

Overall Morningstar Rating As of 10/31/2019

Rating Category: Europe Stock

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 10/31/2019

Years Ratings Funds
in category
3
1 Stars
97
5
2 Stars
77
10
3 Stars
52

Morningstar Style Box As of09/30/2019

Strategy, Benefits, Results

Strategy

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.

Benefits

  • Diversification. We focus predominantly on large- and mid-cap European equities, with an investment mix that contains a variety of industries.
  • 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 MSCI Europe Index.

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