Fund Description

The fund seeks high total return by investing at least 80% of its assets in U.S. equity securities that the fund manager believes are available at market prices less than their value based on certain recognized or objective criteria.

Strategy Statement

"Our strategy is not aimed at trading gains and we don't consider the composition of any index. We seek companies that answer our investment criteria and assume we will hold them for several years."

Grace Hoefig


Grace Hoefig

Grace Hoefig

  • Joined Franklin Templeton in 2008
  • Managed Fund Since 2012
Srini Vijay, CFA

Srini Vijay, CFA®

  • Joined Franklin Templeton in 2019
  • Managed Fund Since 2019


Overall Morningstar Rating As of 06/30/2021

Rating Category: Mid-Cap Value

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 06/30/2021

Years Ratings Funds
in category
2 Stars
3 Stars
2 Stars

Morningstar Style Box As of05/31/2021

Strategy, Benefits, Results


We employ a long-term, straightforward, disciplined approach to investing in securities of companies of any size and market capitalization. Before investing, companies must meet the following criteria:

  • Sound Balance Sheets. We only consider companies with financials strong enough to withstand adversity, and with low levels of debt.
  • Attractive Price to Book Valuations. We select companies that trade in the lowest two deciles (20%) of the fund's investible universe, which is derived from a proprietary database, and then rigorously analyze company valuations.

We may also consider:

  • Book Value Growth. We analyze a company's assets and liabilities, focusing on growth in a company's book value through net earnings in an effort to determine overstated asset values.
  • Qualitative Analysis. We invest where management's interests are not adverse to those of long-term investors, and assume to own stocks for at least five years.


  • Diversification. We invest across the entire market-cap spectrum, maintaining an investment mix with a variety of industries or sectors.
  • A Record of Lower Volatility.
  • Value Expertise. Investors can benefit from our veteran management team with extensive value-investing experience.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • Value securities may not increase in price as anticipated or may decline further in value
  • While smaller and midsize companies may offer substantial opportunities for capital growth, they also involve heightened risks and should be considered speculative.
  • Historically, smaller and mid-sized company stocks have been more volatile in price, especially over the short term.
  • Investments in foreign securities involve special risks including currency fluctuations, and economic and political uncertainties.
  • These and other risks are described more fully in the fund’s prospectus.

Minimum Investment


How Financial Professionals Help You

Speak with your financial professional about whether this fund is appropriate for you.

Learn more from FINRA about How to Find and Work with an Investment Professional.