PRICE AND YTD RETURN As of 02/04/2016

NAV up $0.07 $12.57
POP $13.34
YTD Total return at Nav -6.61%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 12/31/2015

Sales Charge

1 YEAR RETURN -12.88%
5 YEAR RETURN 5.92%
10 YEAR RETURN 4.30%

KEY STATS

Investment Category Value
Distributions Annually
CUSIP 355 148 818
Fund Number 422
Inception Date Jul 01, 2005
Total Net Assets (all share classes) As of 01/31/2016 $141.2 (M)
Distribution Rate at NAV N/A
30-Day Standardized yield N/A

SALES CHARGE, EXPENSES, & FEES As of 03/01/2015 (updated annually)

Gross Expense Ratio 1.57%
Net Expense Ratio 1.36%
Max Initial Sales Charge 5.75%
CDSC 0.00%
12b-1 Fee 0.30%

Fund Description

The fund’s managers invest at least 80% of the fund’s net assets in the equity securities of mid-capitalization companies, which are defined as being similar in size to those companies in the Russell MidCap Index, at the time of purchase.

Strategy Statement

"We invest in undervalued, mid-capitalization companies attempting to benefit from the growth potential associated with being small enough and the financial stability afforded by being large enough."

Management

Samuel Kerner, CFA

Samuel Kerner, CFA®

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2005
Jakov Stipanov, CFA, MBA

Jakov Stipanov, CFA®, MBA

  • Joined Franklin Templeton in 2010
  • Managed Fund Since 2014
Donald Taylor

Donald Taylor

  • Joined Franklin Templeton in 1996
  • Managed Fund Since 2005

Overall Morningstar Rating As of 12/31/2015

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 12/31/2015

Years Ratings Funds
in category
3
2 Stars
407
5
2 Stars
343
10
2 Stars
235

Morningstar Style Box As of 09/30/2015

Strategy, Benefits, Results

Strategy

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 mid-capitalization companies with the following characteristics:

  • Well-managed companies with strong fundamentals.
  • Stock prices that are low based on earnings, book value, cash flow or sales 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.

Benefits

  • Broad Market Exposure. We invest in a broad variety of companies across multiple sectors and industries.
  • Value Expertise. Investors benefit from our seasoned management team with extensive value investing experience.

Investing In The Fund

What Are the Risks?
  • All investments involve risks, including possible loss of principal.
  • Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.
  • Historically, mid-size company securities have been more volatile in price than larger company securities, especially over the short term.
  • Mid-size companies may be more susceptible to particular economic events or competitive factors than are larger, more broadly diversified companies.
  • The fund may invest up to 25% of its total assets in foreign securities, which involve special risks, including currency fluctuations and economic and political uncertainty.
  • These and other risks are discussed in the fund’s prospectus.

Minimum Investment

$1,000.00

How Financial Advisors Help You

Speak to your financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

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