PRICE AND YTD RETURN As of 07/27/2016

NAV down $-0.04 $14.70
POP $15.60
YTD Total return at Nav 9.21%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 06/30/2016

Sales Charge

1 YEAR RETURN -7.70%
10 YEAR RETURN 4.29%


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 06/30/2016 $156.0 (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 1.56%
Net Expense Ratio 1.30%
Max Initial Sales Charge 5.75%
CDSC 0.00%
12b-1 Fee 0.25%

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."

Samuel Kerner, CFA®


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 06/30/2016

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 06/30/2016

Years Ratings Funds
in category
2 Stars
2 Stars
2 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 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.


  • 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


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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