Equity

TESIX Franklin Mutual Shares Fund

Diversification. Though we are focused mainly on large-cap equities, the fund's investment mix contains a variety of asset classes.
A Record of Lower Long-Term Volatility than the Russell 1000 Value Index.
Performance in All Types of Markets. Franklin Mutual Shares Fund aims to achieve long-term growth over up, down and sideways market cycles.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks capital appreciation, which may occasionally be short term, with income as a secondary goal. Its strategy is focused on undervalued mid- and large-cap equity securities, which may include foreign securities and, to a lesser extent, distressed securities and merger arbitrage.

Benchmark: Linked Russell 1000 Value Index
Dividend Frequency, if any: Semiannually
30-Day SEC Yield—With Waiver^3,4,5As of 11/30/2025 (Updated Monthly): 1.18%
Fund Inception Date: 07/01/1949
Portfolio Turnover: 33%

Sales Charges, Expenses & Fees

As of 05/01/2025

Gross Expense Ratio⁶: 1.00%
Net Expense Ratio^6,7: 1.00%
Maximum Initial Charge: 5.50%
CDSC⁸: 1.00%
12b-1 Fee: 0.25%

Identifiers

Ticker: TESIX
Fund Number: 474
CUSIP Code: 628380602

Average Annual Total Returns As of 11/30/2025

View performance section for additional info As of 11/30/2025

Class A

With Sales Charge (POP)

Without Sales Charge (NAV)

-4.74%1 Year
7.79%3 Years
8.51%5 Years
6.37%10 Years
11.19%Since Inception
07/01/1949

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

As of 12/31/2025 % of Total (Updated Monthly)

Top Sectors
Pharmaceuticals, Biotechnology & Life Sciences10.96%
Banks8.49%
Capital Goods8.32%
Financial Services6.58%
Consumer Discretionary Distribution & Retail5.86%

Additional Fund Info

Share Class Inception Date: 11/01/1996
Investment Style: Value
Lipper Classification: N/A
Morningstar Category⁹: Aggressive Allocation

Manager and Commentary

About the Team

Franklin Equity

Franklin Equity understands innovation from every angle—our decades of experience investing in complex change fuels a differentiated perspective on how public and private companies accelerate growth and unlock value. Leveraging fundamental depth and quantitative precision, we identify catalysts for transformation that reshape companies and industries. Our expertise, spanning from growth to value, brings together diverse perspectives that help us spot opportunities ahead of the market.

Commentary Highlights

June 30, 2025

Markets: US stocks, as measured by the Russell 1000 Index, advanced during the second quarter of 2025. After rebounding from April’s lows on US tariff policy, equity markets continued to rally through June despite bouts of volatility. Temporary delays in tariff hikes, reduced fears of a recession, growing expectations of interest-rate cuts later in the year and easing geopolitical tensions helped drive US stocks higher.
Contributors: Stock selection in communication services, health care and consumer discretionary contributed to relative results. Individual contributions included Ferguson Enterprises, Flex and Johnson Controls International.
Detractors: Security selection in financials and energy, as well as stock selection and an underweight in industrials, detracted from relative performance. Among the detractors were Fiserv, Global Payments and Zimmer Biomet Holdings.
Outlook: While we believe there are reasons to be optimistic about the markets, we think uncertainty surrounding trade and geopolitics could continue to generate pockets of volatility in the near term. Several parts of the US economy, such as employment, remain stable. However, consumers are pulling back on non-essential spending and businesses face uncertainty regarding projects funded by government grants, such as those involving infrastructure buildouts.

For complete information, please see the full commentary:

Franklin Equity

Managed Fund Since 2020

Managed Fund Since 2025

Latest Insights

December 18, 2025

Global equity outlook 2026: Renewed tailwinds for quality growth

December 17, 2025

The Goldilocks risk: What if things go right in 2026?

December 16, 2025

Three reasons tech could lead the market — again

December 15, 2025

Beyond tech: The rest of the economy is waking up

Performance

Average Annual Total Returns

¹²

As of 11/30/2025

Month End

Quarter End

As of

Class A - With Sales Charge (POP) (%)

Month End

As of 11/30/2025

Class A - Without Sales Charge (NAV) (%)

Month End

As of 11/30/2025

Linked Russell 1000 Value Index (%)

Month End

As of 11/30/2025

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 2 out of 5 stars
As of 12/31/2025

3 Years: 3 Years: 2 out of 5 stars
88 Funds in category

5 Years: 5 Years: 3 out of 5 stars
87 Funds in category

10 Years: 10 Years: 2 out of 5 stars
68 Funds in category

Rating Category: Aggressive Allocation

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.

Morningstar Style Box

As of 12/31/2025

Current Historical
			Large
			Medium
			Small
Value	Blend	Growth
Style

Size

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Portfolio

Assets

As of12/31/2025 (Updated Monthly)

Total Net Assets: $7.02 Billion

Portfolio Statistics

As of 12/31/2025 (Updated Monthly)

Weighted Average Market Capitalization (USD)

Fund: $336.65 Billion
Benchmark: $401.16 Billion

Price to Cash Flow

Fund: 11.90x
Benchmark: 13.14x

Price to Book

Fund: 2.83x
Benchmark: 3.01x

Price to Earnings (12-Month Trailing)

Fund: 18.77x
Benchmark: 21.04x

Dividend Yield ¹⁰

Fund: 1.94%
Benchmark: 1.83%

Asset Allocation ¹⁴

As of 12/31/2025 % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Undervalued Equities	94.62%
Special Situations	4.58%
Cash & Other Net Assets	0.80%

Holdings
As of 11/30/2025 (Updated Monthly)

Alphabet Inc COM USD.001 CL A

Amazon.com Inc COM USD.01

HALEON PLC ORD GBP 0.01

Thermo Fisher Scientific Inc COM USD1

Hartford Insurance Group Inc/The COM USD.01

Dover Corp COM USD1

Johnson Controls International plc ORD USD.01

JPMorgan Chase & Co COM USD1

Progressive Corp/The COM USD1

PPL Corp COM USD.01

Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.

Distributions & Tax

Distribution Frequency
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: SemiannuallyThis fund is an ex-Dividend fund
Capital Gain Distributions: October, December

Proposed 2026 distribution dates for Franklin, Templeton and Mutual Series funds (excluding ETFs).

Proposed 2025 distribution dates for Franklin, Templeton and Mutual Series funds (excluding ETFs).

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distributions with future dates are estimates and those figures are not final

12/19/2025

09/30/2025

Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.

The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.

Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.

Pricing

Pricing History

As of 01/08/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices and Breakpoints

As of 01/08/2026

Share Prices

As of 01/08/2026

NAV ¹(Net Asset Value): $26.02
NAV Change ¹: $0.30
NAV Change (%) ¹: 1.17%
POP ¹¹(Public Offering Price): $27.53

POP and Sales Charge at Breakpoints

Less than $25,000

$25,000 - $49,999

$50,000 - $99,999

$100,000 - $249,999

$250,000 - $499,999

$500,000 - $749,999

$750,000 - $999,999

52-Week Range

Highest NAV As of 12/11/2025: $26.84
Lowest NAV As of 04/08/2025: $22.18

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download
Checkbox	Factsheet - Franklin Mutual Shares Fund	Download Document
Checkbox	Product Commentary - Franklin Mutual Shares Fund	Download Document
Checkbox	Flyer - Franklin Mutual Series Value-driven strategies, uncompromising results	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Mutual Shares Fund - Class A	Download Document
Checkbox	Annual Financial Statements and Other Information - Franklin Mutual Series Funds	Download Document
Checkbox	Semi-Annual Report - Franklin Mutual Shares Fund - Class A	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Franklin Mutual Series Funds	Download Document
Checkbox	Prospectus - Franklin Mutual Series Fund	Download Document
Checkbox	Summary Prospectus - Franklin Mutual Shares Fund	Download Document
Checkbox	Statement of Additional Information - Franklin Mutual Series FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin Mutual Series FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin Mutual Series FundMailed hardcopies unavailable.	Download Document

View Proxy Voting Records and Proxy Voting Policies

Risks

All investments involve risks, including possible loss of principal. The investment style may become out of favor, which may have a negative impact on performance. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Investments in companies engaged in mergers, reorganizations or liquidations also involve special risks as pending deals may not be completed on time or on favorable terms. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.

Important Information

Click here for funds sales charge and breakpoint information.

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe.
Source: FTSE.

The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe.

The Linked Russell 1000 Value Index reflects the performance of S&P 500 Index from fund inception through 12/31/1978 and Russell 1000 Value Index thereafter.
Source: FTSE.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
For net asset value (NAV) purchases, a 1% contingent deferred sales charge (CDSC) may apply to shares redeemed within 18 months.
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Dividend yield is calculated without the deduction of fees and expenses.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
Prior to 9/10/18, these shares were offered at a higher initial sales charge of 5.75%; thus actual returns would have differed. Total returns with sales charges have been restated to reflect the current maximum initial sales charge of 5.50%.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics.
Special situations includes investments in merger arbitrage and stressed and distressed debt.
Capitalization Rate is calculated without the deduction of fees and expenses.

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TESIX Franklin Mutual Shares Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class A

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings 13

Portfolio

Asset Allocation 14

Distributions & Tax

Pricing

Chart

Daily Fund Prices and Breakpoints

Documents

Risks

Important Information

Footnotes

Ratings ¹³

Asset Allocation ¹⁴