Investment objective & strategy
As of April 28, 2025 · prospectusObjective. Long-term total return.
Strategy. Under normal market conditions, the Fund invests at least 80% of its net assets in investments of small-capitalization (small-cap) companies. Small-cap companies are companies with market capitalizations (the total market value of a companys outstanding stock) not exceeding either: 1) the highest market capitalization in the Russell 2000 Index; or 2) the 12-month average of the highest market capitalization in the Russell 2000 Index, whichever is greater, at the time of purchase. As of the most recent reconstitution, the highest market capitalization in the Russell 2000 Index was $10.82 billion. The Fund generally invests in equity securities of companies that the Funds investment manager believes are undervalued at the time of purchase and have the potential for capital appreciation. The … Under normal market conditions, the Fund invests at least 80% of its net assets in investments of small-capitalization (small-cap) companies. Small-cap companies are companies with market capitalizations (the total market value of a companys outstanding stock) not exceeding either: 1) the highest market capitalization in the Russell 2000 Index; or 2) the 12-month average of the highest market capitalization in the Russell 2000 Index, whichever is greater, at the time of purchase. As of the most recent reconstitution, the highest market capitalization in the Russell 2000 Index was $10.82 billion. The Fund generally invests in equity securities of companies that the Funds investment manager believes are undervalued at the time of purchase and have the potential for capital appreciation. The Fund invests predominantly in common stocks. A stock price is undervalued when it trades at less than the price at which the investment manager believes it would trade if the market reflected all factors relating to the companys worth. Following this strategy, the Fund invests in companies that the investment manager believes have, for example: stock prices that are low relative to current, or historical or future earnings, book value, cash flow or sales; recent sharp price declines but the potential for good long-term earnings prospects; and valuable intangibles not reflected in the stock price. The Fund also may invest in real estate investment trusts (REITs). The types of companies the Fund may invest in include, among other things, those that may be considered out of favor due to actual or perceived cyclical or secular challenges, or are experiencing temporary setbacks, diminished expectations, mismanagement or undermanagement, or are financially stressed. Environmental, social and governance (ESG) related assessments of companies may also be considered. The investment manager does not assess every investment for ESG factors and, when it does, not every ESG factor may be identified or evaluated. The Fund, from time to time, may have significant positions in particular sectors, such as financial services companies, industrials, consumer discretionary and information technology. The Fund may invest up to 25% of its total assets in foreign securities.
Top holdings
As of March 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| ACI WORLDWIDE INC | — | $37.63M | 3.26% |
| WHITECAP RESOURC | — | $33.95M | 2.94% |
| REGAL REXNORD CORP | — | $33.03M | 2.86% |
| ROSEBANK INDUSTRIES PLC | ROSE | $32.61M | 2.83% |
| AVIENT CORP | — | $31.14M | 2.70% |
| SELECT WATER SOLUTIONS INC CL A | — | $29.72M | 2.58% |
| COLUMBIA BANKING SYSTEMS INC | — | $29.38M | 2.55% |
| SOUTHSTATE BANK CORP | — | $29.27M | 2.54% |
| BENCHMARK ELECTRONICS INC | — | $28.87M | 2.50% |
| WSFS FINANCIAL CORP | — | $28.80M | 2.50% |
Portfolio moves
Dec 31, 2025 → Mar 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| SA Franklin Small Company Value Portfolio | 89% | 0.98% |
| Franklin Small Cap Value Fund · FRVLX, FRVFX, FVFRX, FVADX, FRCSX | 88% | 0.60% |
| Small-Cap Equity Portfolio | 74% | 0.74% |
Advisers
| Firm | Role |
|---|---|
| Franklin Mutual Advisers, LLC | Adviser |
Footnotes
- Net assets and holdings count as of March 31, 2026, from the fund's N-PORT filing.
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