Fund Description

The fund seeks long-term capital appreciation by investing predominantly in the equity securities of smaller international companies that the managers believe have the potential to generate attractive returns with lower downside risk. The smaller international companies do not exceed $5 billion in market capitalization or the highest market capitalization in the MSCI EAFE Small Cap Index, whichever is greater, at the time of purchase.

Strategy Statement

"Our team seeks small cap stocks we believe are trading below their normal valuation, and that have catalysts in place that may spur a return to normal valuation."


Paul D. Ehrlichman

Paul D. Ehrlichman

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2021
Sean M. Bogda, CFA

Sean M. Bogda, CFA®

  • Joined Franklin Templeton in 1993
  • Managed Fund Since 2021
Safa R. Muhtaseb, CFA

Safa R. Muhtaseb, CFA®

  • Joined Franklin Templeton in 2004
  • Managed Fund Since 2021
Grace Su

Grace Su

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2021


Overall Morningstar Rating As of 06/30/2021

Rating Category: Foreign Small/Mid Blend

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
1 Stars
1 Stars
1 Stars

Morningstar Style Box As of05/31/2021

Strategy, Benefits, Results


  • We seek to identify contrarian value opportunities with significant unrecognized growth potential.
  • Our managers use quantitative and fundamental analyses to find companies capable of long-term appreciation.
  • Portfolio construction uses a team approach to ensure that each member's expert insights are applied to all potential investment ideas.


  • Small-Cap Expertise: Management team has a long-tenured track record as international value investors.
  • Small Cap Exposure: Adds a level of diversification to a domestic core equities portfolio.
  • Blended Approach: Incorporates both quantitative and fundamental research to find undervalued companies with a combination of quality and long-term growth potential.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • The fund is intended for long-term investors who are comfortable with fluctuation in the value of their investment, especially over the short term.
  • Smaller, relatively new and/or unseasoned companies can be particularly sensitive to changing economic conditions, and their prospects for growth are less certain than those of larger, more established companies.
  • Foreign investing involves additional risks such as currency and market volatility, as well as political and social instability.
  • Investments in emerging markets involve heightened risks relating to the same factors.
  • Because the fund may invest its assets in companies in a specific region, including Europe, it is subject to greater risks of adverse developments in that region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the region, even in countries in which the fund is not invested, may adversely affect the value of investments held by the fund.
  • These and other risks are described 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.

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