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®

Management

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 PHILOSOPHY, STRATEGY AND APPROACH

Rating

Overall Morningstar Rating As of 08/31/2020

Rating Category: Financial

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 08/31/2020

Years Ratings Funds
in category
3
2 Stars
94
5
2 Stars
84
10
2 Stars
70

Morningstar Style Box

We do not publish a style box for this fund.

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 longer-term than the overall market and has enabled us to deliver attractive equity returns.

Benefits

  • Financial Services Exposure. We aim to take advantage of a broad range of opportunities particular to the financial services industry.
  • A Record of Lower Long-Term Volatility than MSCI World Financials Sector Index.
  • 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.