Franklin Mutual Beacon Fund

The Franklin Mutual Beacon Fund primarily allocates capital to equity securities, which may include those convertible into, or anticipated to be exchanged for, common or preferred stock. The fund targets both U.S. and international companies whose market prices, in the view of the investment manager, trade below their inherent value, as determined by objective and recognized fundamental criteria. While its equity holdings largely consist of common stock, the fund retains the flexibility to invest a significant portion—potentially up to 100%—of its assets in foreign securities, including participations in foreign government debt.