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FRANKLIN MUTUAL SHARES FUND
Let’s Suppose...
...you were 30 years old in 1982.
And suppose you had invested
$5,500 in Franklin Mutual Shares Fund.
And let’s suppose you continued
to invest $5,500 in the fund each
year since then.
Now it’s 35 years later. You’re 65 years
old and thinking about retirement.
What would the value of your
investments have grown to?
NOT FDIC INSURED
|
MAY LOSE VALUE
|
NO BANK GUARANTEE
Over 1.9
Million Dollars!
AND ALL FROM TOTAL INVESTMENTS OF JUST $192,500.
(Assumes no withdrawals are made during 35-year period.)
The table below illustrates a hypothetical continuous investment strategy of $5,500 per year (with dividends and
capital gains distributions reinvested). It covers the period from 1982 through 2016. Returns do not take into
account federal, state and municipal taxation consequences. If taxes were taken into account, the hypothetical
values shown would be reduced.
Performance data represents past performance, which does not guarantee future results. Current performance may
differ from the figures shown. The fund’s investment return and principal value will change with market conditions,
and you may have a gain or a loss when you sell your shares. Please call Franklin Templeton Investments at
(800) DIAL BEN/342-5236 or visit franklintempleton.com for the most recent month-end performance.
Class Z shares are only offered to certain eligible investors as stated in the prospectus. They are offered without sales
charges or Rule 12b-1 fees. The fund offers multiple share classes, which are subject to different fees and expenses
that will affect their performance. Please see the prospectus for details.
The total amount you invested would be. . . . . . . . . . . . . . . $192,500
By comparison, the value of your account
on December 31, 2016, would have been. . . . . . . . . . . . $1,911,9351
FRANKLIN MUTUAL SHARES FUND–CLASS Z
Hypothetical Illustration
Period
Ended
Dec. 31
Total
Cumulative
Investment
Annual Reinvestment
(Dividends and
Capital Gains)
Account
Market Value2
Total Cumulative
Shares Owned
Fund Calendar
Year Returns
1982
$5,500
$768
$6,350
782
12.87%
1983
$11,000
$893
$15,038
1,519
36.65%
1984
$16,500
$1,960
$22,607
2,247
14.47%
1985
$22,000
$2,960
$35,174
3,056
26.73%
1986
$27,500
$3,978
$46,737
3,870
16.99%
1987
$33,000
$10,625
$59,874
5,177
6.34%
1988
$38,500
$8,814
$85,098
6,278
30.69%
1989
$44,000
$14,480
$103,863
7,733
14.93%
1990
$49,500
$6,970
$98,865
8,766
-9.82%
1991
$55,000
$6,779
$126,067
9,774
20.99%
1992
$60,500
$9,789
$159,447
10,867
21.33%
1993
$66,000
$17,415
$199,414
12,316
21.00%
1994
$71,500
$15,026
$214,124
13,606
4.53%
1995
$77,000
$42,110
$283,411
16,392
29.11%
1996
$82,500
$38,193
$348,623
18,773
20.76%
1997
$88,000
$40,841
$447,325
21,011
26.38%
1998
$93,500
$39,211
$454,886
23,280
0.45%
1999
$99,000
$47,682
$529,363
25,911
15.00%
2000
$104,500
$87,565
$609,056
30,776
13.83%
2001
$110,000
$50,308
$653,082
33,595
6.32%
2002
$115,500
$17,468
$586,929
34,853
-10.89%
2003
$121,000
$11,317
$750,217
35,759
26.62%
2004
$126,500
$29,617
$860,620
37,337
13.89%
2005
$132,000
$56,249
$956,190
39,924
10.39%
2006
$137,500
$89,161
$1,138,160
43,624
18.37%
2007
$143,000
$71,198
$1,181,321
46,619
3.30%
2008
$148,500
$22,188
$736,974
48,105
-37.92%
2009
$154,000
$20,789
$952,283
49,624
28.20%
2010
$159,500
$31,809
$1,070,481
51,490
11.75%
2011
$165,000
$26,486
$1,059,777
53,122
-1.50%
2012
$170,500
$26,341
$1,226,359
54,553
15.14%
2013
$176,000
$24,253
$1,577,621
55,668
28.10%
2014
$181,500
$54,993
$1,703,579
57,709
7.60%
2015
$187,000
$137,205
$1,644,134
63,236
-3.81%
2016
$192,500
$121,649
$1,911,935
67,751
15.88%
$192,500
$1,187,088
$1,911,935
67,751
TOTAL
Average Annual Total Returns3 (Periods Ended March 31, 2017)
Sales Charges: Class Z: None; Class A: Maximum 5.75% Initial Sales Charge.
Class Z:
Class A (With Sales Charge)
4
Class A (Without Sales Charge)
4
1-Year
5-Year
10-Year
20-Year
Since Inception
(7/1/49)
19.72%
10.93%
4.88%
8.08%
12.85%
12.53%
9.32%
3.96%
7.42%
11.84%
19.40%
10.62%
4.58%
7.73%
11.94%
Total Annual Operating Expenses: Class Z: 0.80%
Class A: 1.05%
The Overall Morningstar RatingTM 5
HHHH
As of March 31, 2017, the fund’s Class Z shares received a 4-star overall Morningstar Rating™, measuring risk-adjusted returns against 139, 125 and 102 U.S.-domiciled
US Fund Allocation—85%+ Equity mutual funds and exchange traded funds over the 3-, 5- and 10- year periods, respectively. A fund’s overall rating is derived from a weighted
average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.
1. These returns and the 3­ 5-­year hypothetical illustration do not take into account federal, state
and municipal taxation; figures are for illustrative purposes only. Federal and applicable
state and municipal income taxes are imposed on dividends and capital gains distributions
(including reinvested ones) and on net capital gains resulting from sales of shares. The chart
reflects ­year-­end values prior to subsequent year’s investment.
2. Market Value is the cumulative total investment plus the cumulative amount of income
dividends reinvested prior to subsequent year’s investment.
3. The fund offers other share classes, subject to different fees and expenses that will affect
their performance.
4. Class A: Prior to 11/1/96, the fund offered only a single class of shares without a sales
charge and Rule 12b-1 expenses, Class Z shares. Figures reflect a restatement of the original
share class to include both the Rule 12b-1 fees and maximum initial sales charges (when
quoting figures with sales charges) applicable to each share class as though in effect from the
fund’s inception. For periods after 11/1/96, actual performance is used, reflecting all charges
and fees applicable to that class.
5. Source: Morningstar®, 3/31/17. For each mutual fund and exchange traded fund with at least
a 3-year history, Morningstar calculates a Morningstar Rating™ based on how a fund ranks
on a Morningstar Risk-Adjusted Return measure against other funds in the same category.
This measure takes into account variations in a fund’s monthly performance, and does not take
into account the effects of sales charges, placing more emphasis on downward variations and
rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the
next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and
the bottom 10% receive 1 star. The weights are: 100% 3-year rating for 36–59 months of total
returns, 60% 5-year rating/40% 3-year rating for 60–119 months of total returns, and 50%
10-year rating/30% 5-year rating/20% 3- year rating for 120 or more months of total returns.
While the 10-year overall star rating formula seems to give the most weight to the 10-year period,
the most recent 3-year period actually has the greatest impact because it is included in all three
rating periods. Class Z shares of Franklin Mutual Shares Fund received a Morningstar Rating of
4, 5 and 4 star(s) for the 3-, 5- and 10-year periods, respectively. Morningstar Rating™ is for
the named share class only; other classes may have different performance characteristics. Past
performance is not an indicator or a guarantee of future performance. Source: Morningstar.
Important data provider notices and terms available at www.franklintempletondatasources.com.
FUND DESCRIPTION:
The fund seeks capital appreciation, with income as a secondary goal.
Its strategy is focused on undervalued mid- and large-cap equity securities,
which may include foreign securities and, to a lesser extent, distressed
securities and merger arbitrage.
A FEW WORDS ABOUT RISK
Because the investment program in this flyer involves a substantial
investment in a single mutual fund, it carries greater risks than an
investment program associated with a more diversified portfolio.
All investments involve risks, including possible loss of principal.
Value securities may not increase in price as anticipated or may decline
further in value. Special risks are associated with foreign investing,
including currency fluctuations, economic instability and political
developments. The fund’s investments in companies engaged in mergers,
reorganizations or liquidations also involve special risks as pending deals
may not be completed on time or on favorable terms. The fund may
invest in lower-rated bonds, which entail higher credit risk. Please consult
the prospectus for a more detailed description of the fund’s risks.
Investors should carefully consider a fund’s investment goals, risks,
charges and expenses before investing. To obtain a summary prospectus
and/or prospectus, which contains this and other information, talk to
your financial advisor, call us at (800) DIAL BEN/342-5236 or visit
franklintempleton.com. Please carefully read a prospectus before you
invest or send money.
Franklin Templeton Distributors, Inc.
One Franklin Parkway
San Mateo, CA 94403-1906
(800) DIAL BEN® / 342-5236
franklintempleton.com
© 2017 Franklin Templeton Investments. All rights reserved.
Franklin Mutual Shares Fund
Symbols:
Z Shares: MUTHX
A Shares: TESIX
C Shares: TEMTX
R Shares: TESRX
UPD 08/17
074 BSUP 04/17