Fund Description

The fund seeks high total return by investing most of its assets in the stocks of companies the fund managers believe are undervalued and trading at a low price relative to book value.

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

Management

Grace Hoefig

Grace Hoefig

  • Joined Franklin Templeton in 2008
  • Managed Fund Since 2012
Daniel Perrin, CFA

Daniel Perrin, CFA®

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2017

Rating

Overall Morningstar Rating As of 04/30/2018

Rating Category: Mid-Cap 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 04/30/2018

Years Ratings Funds
in category
3
3 Stars
364
5
2 Stars
309
10
1 Stars
221

Morningstar Style Box As of03/31/2018

Strategy, Benefits, Results

Strategy

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.

Benefits

  • 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.
  • 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.
  • Smaller companies often have relatively small revenues, limited product lines and a small market share.
  • 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

See Prospectus

How Financial Advisors Help You

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