Franklin MicroCap Value Fund

This fund or share class has been closed to new investors.

PRICE AND YTD RETURN As of 07/27/2016

NAV up $0.09 $32.47
POP $34.45
YTD Total return at Nav 13.25%
1 YEAR RETURN -6.67%
10 YEAR RETURN 5.25%


Investment Category Value
Distributions Annually
CUSIP 355 148 206
Fund Number 189
Inception Date Dec 12, 1995
Total Net Assets (all share classes) As of 06/30/2016 $318.7 (M)
Distribution Rate at NAV N/A
30-Day Standardized yield N/A

SALES CHARGE, EXPENSES, & FEES As of 03/01/2016 (updated annually)

Gross Expense Ratio 1.21%
Net Expense Ratio 1.20%
Max Initial Sales Charge 5.75%
CDSC 0.00%
12b-1 Fee 0.24%

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."


Bruce Baughman

Bruce Baughman

  • Joined Franklin Templeton in 1987
  • Managed Fund Since 1995
Donald Taylor

Donald Taylor

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 1996

Overall Morningstar Rating As of 06/30/2016

Rating Category: Small 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 06/30/2016

Years Ratings Funds
in category
2 Stars
3 Stars
4 Stars

Morningstar Style Box As of 03/31/2016

Strategy, Benefits, Results


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.


  • 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.

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