Franklin MicroCap Value Fund

Fund Description

The fund seeks high total return by investing at least 80% of its net assets in companies with a total market capitalization of less than $500 million at the time of purchase.

Strategy Statement

"We look for financially sound, micro-cap companies where we can gain from market inefficiencies. We seek companies with low price-to-book value that we believe will increase over several years."

Management

Oliver Haung Wong, CFA

Oliver Haung Wong, CFA®

  • Joined Franklin Templeton in 2012
  • Managed Fund Since 2019

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Process

Rating

Overall Morningstar Rating As of 08/31/2020

Rating Category: Small 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 08/31/2020

Years Ratings Funds
in category
3
3 Stars
391
5
3 Stars
357
10
3 Stars
253

Morningstar Style Box As of07/31/2020

Strategy, Benefits, Results

Strategy

We are long-term, bottom-up investors looking for companies with solid operating results and trading at attractive valuations. We are bargain seekers looking for $1 worth of value for 80 cents.

We seek undervalued micro-capitalization companies with the following characteristics:

  • Well-managed companies with strong fundamentals and low price-to-book values.
  • Stock prices that are low based on earnings, cash flow or sales and relative to the market, a company's industry or a company's earnings record.
  • Recent sharp price declines but the potential for good long-term earning prospects.
  • Valuable intangibles not reflected in the stock price, such as franchises, underused or understated assets or cash, or patents and trademarks.

We are buy-and-hold investors who generally seek to hold an investment for five or more years.

Benefits

  • MicroCap Exposure. We like micro caps that exist below Wall Street's radar, where we can take advantage of the market's inefficiencies.
  • Broad Market Exposure. We invest in a broad variety of companies across multiple sectors and industries.
  • Value Expertise. Investors benefit from our veteran management team with extensive value-investing experience.