N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number 811-05387
 
Franklin Mutual Series Funds
(Exact name of registrant as specified in charter)
 
101 John F. Kennedy Parkway
, Short Hills, NJ 07078-2705
(Address of principal executive offices) (Zip code)
 
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
 
Registrant's telephone number, including area code:(210)912-2100
 
Date of fiscal year end: 12/31
 
Date of reporting period: 6/30/23
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
 
Semiannual
Report
Franklin
Mutual
Series
Funds
June
30,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Franklin
Mutual
International
Value
Fund
Formerly,
Franklin
Mutual
European
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
.
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund’s
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
a
broker-dealer
or
bank)
or,
if
you
are
a
direct
investor,
enrolling
at
franklintempleton.com.
You
may
access
franklintempleton.com
by
scanning
the
code
below.
franklintempleton.com
Semiannual
Report
1
Contents
Franklin
Mutual
Beacon
Fund
2
Franklin
Mutual
Financial
Services
Fund
7
Franklin
Mutual
Global
Discovery
Fund
12
Franklin
Mutual
International
Value
Fund
17
Franklin
Mutual
Quest
Fund
22
Franklin
Mutual
Shares
Fund
27
Financial
Highlights
and
Schedules
of
Investments
32
Financial
Statements
89
Notes
to
Financial
Statements
100
Shareholder
Information
132
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Semiannual
Report
Franklin
Mutual
Beacon
Fund
This
semiannual
report
for
Franklin
Mutual
Beacon
Fund
covers
the
period
ended
June
30,
2023
.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation,
which
may
occasionally
be
short
term.
The
secondary
goal
is
income.
Under
normal
market
conditions,
the
Fund
invests
primarily
to
predominantly
in
equity
securities
of
U.S.
and
foreign
companies
that
we
believe
are
available
at
market
prices
less
than
their
fundamental
value.
The
equity
securities
in
which
the
Fund
invests
are
primarily
common
stock,
with
a
current
focus
on
mid-
and
large-cap
companies.
To
a
lesser
extent,
the
Fund
also
invests
in
merger
arbitrage
securities
and
the
debt
and
equity
of
distressed
companies.
The
Fund
may
invest
a
substantial
portion,
potentially
up
to
100%
of
its
assets,
in
foreign
securities
and
participations
in
foreign
government
debt.
The
Geographic
Composition
table
on
this
page
lists
the
leading
countries
where
the
Fund
invests.
Performance
Overview
The
Fund’s
Class
Z
shares
posted
a
+7.59%
cumulative
total
return
for
the
six
months
ended
June
30,
2023.
In
comparison,
the
Fund’s
benchmark,
the
MSCI
World
Value
Index-NR
(USD),
which
measures
the
performance
of
stocks
exhibiting
overall
value
style
characteristics
in
global
developed
markets,
posted
a
+3.98%
cumulative
total
return.
1
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
4
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Geographic
Composition
6/30/23
%
of
Total
Net
Assets
United
States
60.6%
United
Kingdom
10.0%
Switzerland
6.7%
France
5.7%
Netherlands
3.4%
Germany
3.1%
Singapore
2.9%
Australia
2.3%
Japan
2.0%
Other
*
0.0%
Short-Term
Investments
&
Other
Net
Assets
3.3%
Top
10
Industries
6/30/23
%
of
Total
Net
Assets
a
Pharmaceuticals
11.5%
Banks
9.8%
Textiles,
Apparel
&
Luxury
Goods
5.2%
Health
Care
Equipment
&
Supplies
4.0%
Oil,
Gas
&
Consumable
Fuels
3.7%
Beverages
3.4%
Household
Products
3.3%
Capital
Markets
3.3%
Media
3.2%
Diversified
Telecommunication
Services
3.1%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
37
.
*Rounds
to
less
than
0.1%
Franklin
Mutual
Beacon
Fund
3
franklintempleton.com
Semiannual
Report
Thank
you
for
your
participation
in
Franklin
Mutual
Beacon
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Christian
Correa,
CFA
Mandana
Hormozi
Aman
Gupta,
CFA
Portfolio
Management
Team
Top
10
Holdings
6/30/23
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
JPMorgan
Chase
&
Co.
4.2%
Banks,
United
States
Medtronic
plc
4.0%
Health
Care
Equipment
&
Supplies,
United
States
BP
plc
3.7%
Oil,
Gas
&
Consumable
Fuels,
United
Kingdom
Novartis
AG
3.6%
Pharmaceuticals,
Switzerland
Heineken
NV
3.4%
Beverages,
Netherlands
Reckitt
Benckiser
Group
plc
3.3%
Household
Products,
United
Kingdom
BlackRock,
Inc.
3.3%
Capital
Markets,
United
States
Charter
Communications,
Inc.
3.2%
Media,
United
States
Deutsche
Telekom
AG
3.1%
Diversified
Telecommunication
Services,
Germany
Hartford
Financial
Services
Group,
Inc.
(The)
3.1%
Insurance,
United
States
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
June
30,
2023
Franklin
Mutual
Beacon
Fund
4
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6
/30/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
Z
6-Month
+7.59%
+7.59%
1-Year
+9.97%
+9.97%
5-Year
+34.85%
+6.16%
10-Year
+105.19%
+7.45%
A
4
6-Month
+7.40%
+1.46%
1-Year
+9.60%
+3.59%
5-Year
+33.10%
+4.69%
10-Year
+99.88%
+6.57%
See
page
5
for
Performance
Summary
footnotes.
Franklin
Mutual
Beacon
Fund
Performance
Summary
5
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
vola-
tility.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
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.
Low-rated,
high-yield
bonds
are
subject
to
greater
price
volatility,
illiquidity
and
possibility
of
default.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
consid-
erations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund’s
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
Z
0.77%
A
1.02%
Your
Fund’s
Expenses
Franklin
Mutual
Beacon
Fund
6
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
1/1/23
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
Z
$1,000
$1,075.90
$3.96
$1,020.98
$3.86
0.77%
A
$1,000
$1,074.00
$5.24
$1,019.74
$5.11
1.02%
C
$1,000
$1,069.80
$9.08
$1,016.02
$8.84
1.77%
R
$1,000
$1,073.00
$6.52
$1,018.50
$6.35
1.27%
R6
$1,000
$1,075.90
$3.67
$1,021.26
$3.57
0.71%
7
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Financial
Services
Fund
This
semiannual
report
for
Franklin
Mutual
Financial
Services
Fund
covers
the
period
ended
June
30,
2023
.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation,
which
may
occasionally
be
short
term.
Its
secondary
goal
is
income.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
securities
of
financial
services
companies
that
we
believe
are
available
at
market
prices
less
than
their
fundamental
value.
The
Fund
invests
primarily
in
undervalued
equity
securities,
mainly
common
stocks
with
a
substantial
focus
on
mid-
and
large
cap
companies
and
may
invest
a
significant
portion
of
its
equity
portfolio
in
small-cap
companies.
To
a
significantly
lesser
extent,
the
Fund
also
invests
in
merger
arbitrage
securities
and
the
debt
and
equity
of
distressed
companies.
The
Fund
may
invest
in
foreign
securities
without
limit.
The
Geographic
Composition
table
on
this
page
lists
the
leading
countries
where
the
Fund
invests.
Performance
Overview
The
Fund’s
Class
Z
shares
posted
a
-2.99%
cumulative
total
return
for
the
six
months
ended
June
30,
2023.
For
comparison,
the
Fund’s
primary
benchmark,
the
MSCI
World
Financials
Index-NR
(USD),
which
captures
large-
and
mid-cap
financials
sector
representation
across
developed
market
countries,
posted
a
+3.32%
cumulative
total
return.
1
Also
for
comparison,
the
Standard
&
Poor’s
®
500
(S&P
500
®
)
Financials
Index,
which
consists
of
all
financial
stocks
in
the
S&P
500
®
,
posted
a
-0.53%
cumulative
total
return.
1
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
9
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Geographic
Composition
6/30/23
%
of
Total
Net
Assets
United
States
58.8%
Netherlands
10.6%
Ireland
5.7%
Jordan
3.6%
Italy
3.2%
France
2.9%
Germany
2.7%
Spain
1.9%
China
1.6%
United
Kingdom
1.5%
Austria
1.1%
Singapore
1.0%
Short-Term
Investments
&
Other
Net
Assets
5.4%
Portfolio
Composition
6/30/23
%
of
Total
Net
Assets
Banks
34.1%
Insurance
29.2%
Financial
Services
10.4%
Capital
Markets
5.3%
Real
Estate
Management
&
Development
3.3%
Consumer
Finance
3.3%
Household
Durables
3.2%
Trading
Companies
&
Distributors
2.5%
Professional
Services
1.9%
Office
REITs
1.4%
Short-Term
Investments
&
Other
Net
Assets
5.4%
1.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
44
.
Franklin
Mutual
Financial
Services
Fund
8
franklintempleton.com
Semiannual
Report
Thank
you
for
your
participation
in
Franklin
Mutual
Financial
Services
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Andrew
Dinnhaupt,
CFA
Luis
Hernandez
Portfolio
Managers
Top
10
Holdings
6/30/23
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Voya
Financial,
Inc.
4.8%
Financial
Services,
United
States
Everest
Re
Group
Ltd.
4.5%
Insurance,
United
States
ASR
Nederland
NV
4.2%
Insurance,
Netherlands
Hartford
Financial
Services
Group,
Inc.
(The)
4.1%
Insurance,
United
States
JPMorgan
Chase
&
Co.
4.0%
Banks,
United
States
International
General
Insurance
Holdings
Ltd.
3.6%
Insurance,
Jordan
NN
Group
NV
3.4%
Insurance,
Netherlands
Capital
One
Financial
Corp.
3.3%
Consumer
Finance,
United
States
Cairn
Homes
plc
3.3%
Household
Durables,
Ireland
UniCredit
SpA
3.2%
Banks,
Italy
Performance
Summary
as
of
June
30,
2023
Franklin
Mutual
Financial
Services
Fund
9
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6
/3
0
/2
3
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
Z
6-Month
-2.99%
-2.99%
1-Year
+6.07%
+6.07%
5-Year
+11.57%
+2.21%
10-Year
+84.94%
+6.34%
A
4
6-Month
-3.11%
-8.46%
1-Year
+5.83%
-0.01%
5-Year
+10.22%
+0.82%
10-Year
+80.23%
+5.47%
See
page
10
for
Performance
Summary
footnotes.
Franklin
Mutual
Financial
Services
Fund
Performance
Summary
10
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
volatility.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
Z
1.06%
A
1.31%
Your
Fund’s
Expenses
Franklin
Mutual
Financial
Services
Fund
11
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
1/1/23
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
Z
$1,000
$970.10
$5.19
$1,019.53
$5.32
1.06%
A
$1,000
$968.90
$6.40
$1,018.29
$6.56
1.31%
C
$1,000
$965.40
$10.04
$1,014.58
$10.29
2.06%
R6
$1,000
$970.70
$4.87
$1,019.86
$4.99
1.00%
12
franklintempleton.com
Semiannual
Report
Franklin
Mutual
Global
Discovery
Fund
This
semiannual
report
for
Franklin
Mutual
Global
Discovery
Fund
covers
the
period
ended
June
30,
2023.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation.
Under
normal
market
conditions,
the
Fund
invests
primarily
in
equity
securities
of
U.S.
and
foreign
companies
that
we
believe
are
available
at
market
prices
less
than
their
fundamental
value.
The
equity
securities
in
which
the
Fund
invests
are
primarily
common
stock,
with
a
current
focus
on
mid-
and
large
cap
companies.
To
a
lesser
extent,
the
Fund
also
invests
in
merger
arbitrage
securities
and
the
debt
and
equity
of
distressed
companies.
The
Fund
may
invest
a
substantial
portion,
potentially
up
to
100%
of
its
assets,
in
foreign
securities
and
participations
in
foreign
government
debt.
The
Geographic
Composition
table
on
this
page
lists
the
leading
countries
where
the
Fund
invests.
Performance
Overview
The
Fund’s
Class
Z
shares
posted
a
+11.08%
cumulative
total
return
for
the
six
months
ended
June
30,
2023.
In
comparison,
the
Fund’s
benchmark,
the
MSCI
World
Value
Index-NR
(USD),
which
measures
the
performance
of
stocks
exhibiting
overall
value
style
characteristics
in
global
developed
markets,
posted
a
+3.98%
cumulative
total
return.
1
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
14
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Geographic
Composition
6/30/23
%
of
Total
Net
Assets
United
States
54.1%
Germany
8.2%
France
7.3%
Japan
6.7%
United
Kingdom
5.6%
Netherlands
3.8%
Switzerland
2.6%
Israel
2.4%
Ireland
2.1%
South
Korea
1.8%
Singapore
1.7%
Australia
1.5%
Other
*
0.0%
Short-Term
Investments
&
Other
Net
Assets
2.2%
Top
10
Industries
6/30/23
%
of
Total
Net
Assets
a
Pharmaceuticals
7.8%
Health
Care
Providers
&
Services
7.3%
Oil,
Gas
&
Consumable
Fuels
5.8%
Banks
5.6%
Financial
Services
5.5%
Insurance
5.4%
Food
Products
3.7%
Entertainment
3.5%
Trading
Companies
&
Distributors
3.3%
Semiconductors
&
Semiconductor
Equipment
2.7%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
52
.
*Rounds
to
less
than
0.1%.
Franklin
Mutual
Global
Discovery
Fund
13
franklintempleton.com
Semiannual
Report
Thank
you
for
your
participation
in
Franklin
Mutual
Global
Discovery
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Christian
Correa,
CFA
Katrina
Dudley,
CFA
Timothy
Rankin,
CFA
Portfolio
Management
Team
Top
10
Holdings
6/30/23
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Novartis
AG
2.6%
Pharmaceuticals,
Switzerland
Deutsche
Telekom
AG
2.6%
Diversified
Telecommunication
Services,
Germany
Medtronic
plc
2.2%
Health
Care
Equipment
&
Supplies,
United
States
Capital
One
Financial
Corp.
2.2%
Consumer
Finance,
United
States
Covestro
AG
2.2%
Chemicals,
Germany
BP
plc
2.1%
Oil,
Gas
&
Consumable
Fuels,
United
Kingdom
Charter
Communications,
Inc.
2.1%
Media,
United
States
JPMorgan
Chase
&
Co.
2.1%
Banks,
United
States
AerCap
Holdings
NV
2.1%
Trading
Companies
&
Distributors,
Ireland
General
Motors
Co.
2.1%
Automobiles,
United
States
Performance
Summary
as
of
June
30,
2023
Franklin
Mutual
Global
Discovery
Fund
14
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6/30/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
Z
6-Month
+11.08%
4
+11.08%
4
1-Year
+16.89%
+16.89%
5-Year
+36.74%
+6.46%
10-Year
+93.39%
+6.82%
A
5
6-Month
+10.93%
4
+4.83%
1-Year
+16.60%
+10.19%
5-Year
+35.05%
+5.00%
10-Year
+88.42%
+5.94%
See
page
15
for
Performance
Summary
footnotes.
Franklin
Mutual
Global
Discovery
Fund
Performance
Summary
15
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
vola-
tility.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
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.
Low-rated,
high-yield
bonds
are
subject
to
greater
price
volatility,
illiquidity
and
possibility
of
default.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
consid-
erations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund's
prospectus.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contractual
agreement,
which
cannot
be
terminated
prior
to
4/30/24
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Total
return
information
is
based
on
net
asset
values
calculated
for
shareholder
transactions.
Certain
adjustments
were
made
to
the
net
assets
of
the
Fund
at
12/31/22
for
financial
reporting
purposes.
Accordingly,
adjusted
total
returns
have
been
disclosed
in
the
Financial
Highlights
and
differ
from
those
reported
here.
5.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
6.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
6
Share
Class
Z
0.95%
A
1.20%
Your
Fund’s
Expenses
Franklin
Mutual
Global
Discovery
Fund
16
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
1/1/23
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
Z
$1,000
$1,110.80
$5.08
$1,019.99
$4.86
0.97%
A
$1,000
$1,109.30
$6.38
$1,018.75
$6.11
1.22%
C
$1,000
$1,105.30
$10.28
$1,015.03
$9.84
1.97%
R
$1,000
$1,108.50
$7.68
$1,017.51
$7.35
1.47%
R6
$1,000
$1,111.20
$4.66
$1,020.38
$4.46
0.89%
17
franklintempleton.com
Semiannual
Report
Franklin
Mutual
International
Value
Fund
Formerly,
Franklin
Mutual
European
Fund
This
semiannual
report
for
Franklin
Mutual
International
Value
Fund
covers
the
period
ended
June
30,
2023.
Effective
May
1,
2023,
Franklin
Mutual
European
Fund
changed
its
name
to
Franklin
Mutual
International
Value
Fund.
The
Fund
also
changed
its
primary
benchmark,
investment
strategy,
and
lowered
its
management
fee
and
expenses.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation,
which
may
occasionally
be
short
term.
Its
secondary
goal
is
income.
The
Fund
normally
invests
at
least
80%
of
its
net
assets
in
securities
of
issuers
outside
the
United
States,
which
we
believe
are
available
at
market
prices
less
than
their
fundamental
value.
The
Fund
invests
the
equity
portion
of
its
portfolio
primarily
to
predominantly
in
mid-
and
large-
cap
companies.
To
a
lesser
extent,
the
Fund
also
invests
in
merger
arbitrage
securities
and
the
debt
and
equity
of
distressed
companies.
The
Fund
also
may
invest
up
to
25%
of
its
total
assets
in
securities
from
emerging
markets.
The
Geographic
Composition
table
on
this
page
lists
the
leading
countries
where
the
Fund
invests.
Performance
Overview
The
Fund’s
Class
Z
shares
posted
a
+10.56%
cumulative
total
return
for
the
six
months
ended
June
30,
2023.
For
comparison,
the
Fund’s
new
primary
benchmark,
the
MSCI
EAFE
Value
Index-NR
(Unhedged),
which
measures
the
performance
of
large
and
mid-cap
stocks
exhibiting
overall
value
style
characteristics
across
developed
market
countries
around
the
world,
excluding
the
U.S.
and
Canada,
posted
a
+9.28%
cumulative
total
return,
1
while
its
old
primary
benchmark,
the
MSCI
Europe
Value
Index-NR
(Local
Currency),
which
measures
the
performance
of
stocks
exhibiting
overall
value
style
characteristics
in
European
developed
markets,
posted
a
+7.27%
cumulative
total
return.
2
The
Fund’s
secondary
benchmark,
the
MSCI
Europe
Value
Index-NR
(USD),
posted
a
+10.33%
cumulative
total
return.
2
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
19
.
Geographic
Composition
6/30/23
%
of
Total
Net
Assets
Japan
18.5%
Germany
15.1%
Netherlands
14.2%
France
11.6%
United
Kingdom
8.2%
Switzerland
4.1%
United
States
3.9%
Italy
3.8%
South
Korea
3.3%
Singapore
3.3%
Australia
3.0%
Ireland
2.1%
Israel
2.0%
Canada
1.6%
China
1.5%
Belgium
1.1%
Short-Term
Investments
&
Other
Net
Assets
2.7%
1.
Source:
FactSet.
2.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
62
.
Franklin
Mutual
International
Value
Fund
18
franklintempleton.com
Semiannual
Report
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Effective
May
1,
2023,
Timothy
Rankin
was
added
as
a
Portfolio
Manager
of
the
Fund.
Thank
you
for
your
participation
in
Franklin
Mutual
International
Value
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Mandana
Hormozi
Co-Lead
Portfolio
Manager
Todd
Ostrow
Co-Lead
Portfolio
Manager
Katrina
Dudley,
CFA
Timothy
Rankin,
CFA
Portfolio
Managers
Top
10
Industries
6/30/23
%
of
Total
Net
Assets
a
Banks
11.5%
Oil,
Gas
&
Consumable
Fuels
8.2%
Diversified
Telecommunication
Services
6.7%
Insurance
5.1%
Pharmaceuticals
4.9%
Automobile
Components
4.4%
Aerospace
&
Defense
4.4%
Beverages
3.5%
Technology
Hardware,
Storage
&
Peripherals
3.3%
Metals
&
Mining
3.0%
Top
10
Holdings
6/30/23
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Shell
plc
3.6%
Oil,
Gas
&
Consumable
Fuels,
Netherlands
Denso
Corp.
3.5%
Automobile
Components,
Japan
Samsung
Electronics
Co.
Ltd.
3.3%
Technology
Hardware,
Storage
&
Peripherals,
South
Korea
DBS
Group
Holdings
Ltd.
3.3%
Banks,
Singapore
BNP
Paribas
SA
3.2%
Banks,
France
Rio
Tinto
plc
3.0%
Metals
&
Mining,
Australia
BP
plc
3.0%
Oil,
Gas
&
Consumable
Fuels,
United
Kingdom
Covestro
AG
2.9%
Chemicals,
Germany
NN
Group
NV
2.8%
Insurance,
Netherlands
UniCredit
SpA
2.6%
Banks,
Italy
Performance
Summary
as
of
June
30,
2023
Franklin
Mutual
International
Value
Fund
19
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6
/3
0
/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
Z
6-Month
+10.56%
4
+10.56%
4
1-Year
+19.54%
+19.54%
5-Year
+32.56%
+5.80%
10-Year
+69.97%
+5.45%
A
5
6-Month
+10.41%
4
+4.36%
1-Year
+19.22%
+12.68%
5-Year
+30.90%
+4.35%
10-Year
+65.56%
+4.58%
See
page
20
for
Performance
Summary
footnotes.
Franklin
Mutual
International
Value
Fund
Performance
Summary
20
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
To
the
extent
the
Fund
invests
in
companies
in
a
specific
country
or
region,
the
Fund
may
experience
greater
volatility
than
a
fund
that
is
more
broadly
diversified
geographically.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
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
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
4/30/24
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Total
return
information
is
based
on
net
asset
values
calculated
for
shareholder
transactions.
Certain
adjustments
were
made
to
the
net
assets
of
the
Fund
at
12/31/22
for
financial
reporting
purposes.
Accordingly,
adjusted
total
returns
have
been
disclosed
in
the
Financial
Highlights
and
differ
from
those
reported
here.
5.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
6.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
6
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
Z
0.95%
1.00%
A
1.20%
1.25%
Your
Fund’s
Expenses
Franklin
Mutual
International
Value
Fund
21
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
3.
Effective
May
1,
2023,
the
expense
waivers
for
Classes
Z,
A,
C,
R
and
R6
changed
and
the
new
annualized
net
expense
ratios
for
each
class
were:
Class
Z
0.95%,
Class
A
1.20%,
Class
C
1.95%,
Class
R
1.45%
and
Class
R6
0.91%.
Had
such
expense
waivers
been
in
effect
for
the
full
period,
the
Actual
expenses
paid
for
each
class
would
have
been:
Z
$4.96,
A
$6.26,
C
$10.15,
R
$7.56
and
R6
$4.75,
and
the
Hypothetical
expenses
paid
for
each
share
class
would
have
been:
Z
$4.76,
A
$6.01,
C
$9.74,
R
$7.25
and
R6
$4.56.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
1/1/23
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2,3
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2,3
a
Net
Annualized
Expense
Ratio
2,3
Z
$1,000
$1,105.60
$5.24
$1,019.82
$5.02
1.00%
A
$1,000
$1,104.10
$6.54
$1,018.58
$6.27
1.25%
C
$1,000
$1,100.10
$10.43
$1,014.86
$10.01
2.00%
R
$1,000
$1,102.70
$7.83
$1,017.34
$7.52
1.50%
R6
$1,000
$1,105.70
$4.89
$1,020.16
$4.69
0.94%
22
franklintempleton.com
Semiannual
Report
Franklin
Mutual
Quest
Fund
This
semiannual
report
for
Franklin
Mutual
Quest
Fund
covers
the
period
ended
June
30,
2023
.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation,
which
may
occasionally
be
short
term.
The
secondary
goal
is
income.
Under
normal
market
conditions,
the
Fund
invests
substantially
to
primarily
in
equity
securities
of
U.S.
and
foreign
companies
that
we
believe
are
available
at
market
prices
less
than
their
fundamental
value.
The
equity
securities
in
which
the
Fund
invests
are
primarily
common
stock,
with
a
current
focus
on
mid-
and
large-cap
companies.
To
a
lesser
extent,
the
Fund
also
invests
in
merger
arbitrage
securities
and
the
debt
and
equity
of
distressed
companies.
The
Fund
may
invest
a
substantial
portion,
potentially
up
to
100%
of
its
assets,
in
foreign
securities
and
participations
in
foreign
government
debt.
The
Geographic
Composition
table
on
this
page
lists
the
leading
countries
where
the
Fund
invests.
Performance
Overview
The
Fund’s
Class
Z
shares
posted
a
+0.93%
cumulative
total
return
for
the
six
months
ended
June
30,
2023.
In
comparison,
the
Fund’s
primary
benchmark,
the
blended
70%
MSCI
World
Value
Index-NR
(USD)
+
30%
Bloomberg
U.S.
Corporate
High
Yield
Index
(Blended
Benchmark),
posted
a
+4.43%
cumulative
total
return.
1
Also
for
comparison,
the
Fund’s
secondary
benchmark,
the
MSCI
World
Value
Index-NR
(USD),
which
is
designed
to
measure
the
performance
of
stocks
exhibiting
overall
value
style
characteristics
in
global
developed
markets,
posted
a
+3.98%
cumulative
total
return.
2
Additionally,
the
Fund’s
third
benchmark,
the
Bloomberg
U.S.
Corporate
High
Yield
Index,
which
measures
the
performance
of
the
U.S.
dollar-
denominated,
high-yield,
fixed-rate
corporate
bond
market,
defined
as
the
middle
or
lower
ratings
of
Moody’s,
Standard
&
Poor’s
and
Fitch
(Ba1/BB+/BB+
or
below),
posted
a
+5.38%
cumulative
total
return.
2
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
24
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Geographic
Composition
6/30/23
%
of
Total
Net
Assets
United
States
63.4%
United
Kingdom
5.6%
Netherlands
4.1%
Germany
3.0%
Israel
2.4%
Switzerland
1.4%
China
1.2%
Australia
1.1%
Japan
1.1%
Canada
1.0%
Other
0.6%
Short-Term
Investments
&
Other
Net
Assets
15.1%
Top
10
Industries
6/30/23
%
of
Total
Net
Assets
a
Insurance
8.5%
Pharmaceuticals
8.0%
Software
7.0%
Health
Care
Providers
&
Services
6.8%
Media
5.6%
Oil,
Gas
&
Consumable
Fuels
5.0%
Communications
Equipment
4.8%
Entertainment
3.7%
Financial
Services
3.6%
Tobacco
2.9%
1.
Source:
FactSet.
The
Blended
Benchmark
was
calculated
internally.
2.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
71
.
Franklin
Mutual
Quest
Fund
23
franklintempleton.com
Semiannual
Report
Thank
you
for
your
participation
in
Franklin
Mutual
Quest
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Keith
Luh,
CFA
Andrew
Dinnhaupt,
CFA
Portfolio
Managers
Top
10
Holdings
6/30/23
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Sorenson
Communications
LLC
4.1%
Communications
Equipment,
United
States
British
American
Tobacco
plc
2.9%
Tobacco,
United
Kingdom
Horizon
Therapeutics
plc
2.6%
Biotechnology,
United
States
Veritas
US,
Inc.
/
Veritas
Bermuda
Ltd.
2.5%
Software,
United
States
Elevance
Health,
Inc.
2.5%
Health
Care
Providers
&
Services,
United
States
Bausch
Health
Cos.,
Inc.
2.4%
Pharmaceuticals,
United
States
Activision
Blizzard,
Inc.
2.4%
Entertainment,
United
States
Staples,
Inc.
2.3%
Specialty
Retail,
United
States
Charter
Communications,
Inc.
2.2%
Media,
United
States
Check
Point
Software
Technologies
Ltd.
1.9%
Software,
Israel
Performance
Summary
as
of
June
30,
2023
Franklin
Mutual
Quest
Fund
24
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6
/3
0
/2
3
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
Z
6-Month
+0.93%
+0.93%
1-Year
+2.05%
+2.05%
5-Year
+4.25%
+0.84%
10-Year
+47.37%
+3.95%
A
4
6-Month
+0.86%
-4.67%
1-Year
+1.81%
-3.78%
5-Year
+2.99%
-0.54%
10-Year
+43.62%
+3.10%
See
page
25
for
Performance
Summary
footnotes.
Franklin
Mutual
Quest
Fund
Performance
Summary
25
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
To
the
extent
the
Fund
invests
in
companies
in
a
specific
country
or
region,
the
Fund
may
experience
greater
volatility
than
a
fund
that
is
more
broadly
diversified
geographically.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
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.
Low-rated,
high-yield
bonds
are
subject
to
greater
price
volatility,
illiquidity
and
possibility
of
default.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
Z
0.78%
A
1.03%
Your
Fund’s
Expenses
Franklin
Mutual
Quest
Fund
26
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
1/1/23
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
Z
$1,000
$1,009.30
$4.12
$1,020.70
$4.14
0.83%
A
$1,000
$1,008.60
$5.36
$1,019.46
$5.39
1.08%
C
$1,000
$1,004.70
$9.07
$1,015.74
$9.12
1.83%
R
$1,000
$1,007.20
$6.60
$1,018.22
$6.64
1.33%
R6
$1,000
$1,010.00
$3.88
$1,020.93
$3.90
0.78%
27
franklintempleton.com
Semiannual
Report
Franklin
Mutual
Shares
Fund
This
semiannual
report
for
Franklin
Mutual
Shares
Fund
covers
the
period
ended
June
30
,
2023
.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation,
which
may
occasionally
be
short
term.
The
secondary
goal
is
income.
Under
normal
market
conditions,
the
Fund
invests
primarily
in
equity
securities
of
U.S.
and
foreign
companies
that
we
believe
are
available
at
market
prices
less
than
their
fundamental
value.
The
equity
securities
in
which
the
Fund
invests
are
primarily
common
stock,
with
a
current
focus
on
mid-
and
large-cap
companies,
and
the
remaining
portion
in
smaller
companies.
To
a
lesser
extent,
the
Fund
also
invests
in
merger
arbitrage
securities
and
the
debt
and
equity
of
distressed
companies.
The
Fund
may
invest
up
to
35%
of
its
assets
in
foreign
securities
and
participations
in
foreign
government
debt.
The
Geographic
Composition
table
on
this
page
lists
the
leading
countries
where
the
Fund
invests.
Performance
Overview
The
Fund’s
Class
Z
shares
posted
a
+5.47%
cumulative
total
return
for
the
six
months
ended
June
30,
2023.
For
comparison,
the
Fund’s
benchmark,
the
Russell
1000
®
Value
Index,
which
measures
the
performance
of
the
large-
cap
value
segment
of
the
U.S.
equity
universe,
posted
a
+5.12%
cumulative
total
return
for
the
period
under
review.
1
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
29
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Geographic
Composition
*
6/30/23
%
of
Total
Net
Assets
United
States
89.4%
United
Kingdom
3.8%
Switzerland
2.3%
Other
†,‡
0.0%
Short-Term
Investments
&
Other
Net
Assets
4.5%
*
The
Fund
held
6.1%
of
total
net
assets
in
foreign
securities.
†
Rounds
to
less
than
0.1%.
‡
Includes
financial
instruments
determined
to
have
no
value.
Top
10
Industries
6/30/23
%
of
Total
Net
Assets
a
Pharmaceuticals
7.8%
Financial
Services
6.5%
Oil,
Gas
&
Consumable
Fuels
5.9%
Software
5.6%
Health
Care
Providers
&
Services
5.4%
Banks
5.0%
Entertainment
4.1%
Professional
Services
4.1%
Media
3.9%
Insurance
3.4%
Top
10
Holdings
6/30/23
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
JPMorgan
Chase
&
Co.
3.0%
Banks,
United
States
Fiserv,
Inc.
2.8%
Financial
Services,
United
States
Meta
Platforms,
Inc.
2.5%
Interactive
Media
&
Services,
United
States
CBRE
Group,
Inc.
2.5%
Real
Estate
Management
&
Development,
United
States
Schlumberger
NV
2.3%
Energy
Equipment
&
Services,
United
States
Novartis
AG
2.3%
Pharmaceuticals,
Switzerland
Tapestry,
Inc.
2.3%
Textiles,
Apparel
&
Luxury
Goods,
United
States
Flex
Ltd.
2.3%
Electronic
Equipment,
Instruments
&
Components,
United
States
Medtronic
plc
2.2%
Health
Care
Equipment
&
Supplies,
United
States
Kraft
Heinz
Co.
(The)
2.2%
Food
Products,
United
States
1.
Source:
Morningstar.
Frank
Russell
Company
is
the
source
and
owner
of
the
trademarks,
service
marks
and
copyrights
related
to
the
Russell
Indexes.
Russell
®
is
a
trademark
of
Frank
Russell
Company.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
84
.
Franklin
Mutual
Shares
Fund
28
franklintempleton.com
Semiannual
Report
Effective
December
31,
2022,
Debbie
A.
Turner
stepped
off
the
Fund
as
Assistant
Portfolio
Manager.
Thank
you
for
your
participation
in
Franklin
Mutual
Shares
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Christian
Correa,
CFA
Grace
Hoefig
Portfolio
Managers
Performance
Summary
as
of
June
30,
2023
Franklin
Mutual
Shares
Fund
29
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6/30/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
Z
6-Month
+5.47%
+5.47%
1-Year
+12.13%
+12.13%
5-Year
+26.50%
+4.81%
10-Year
+85.80%
+6.39%
A
4
6-Month
+5.32%
-0.46%
1-Year
+11.88%
+5.72%
5-Year
+24.92%
+3.38%
10-Year
+81.01%
+5.51%
See
page
30
for
Performance
Summary
footnotes.
Franklin
Mutual
Shares
Fund
Performance
Summary
30
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
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.
Low-rated,
high-yield
bonds
are
subject
to
greater
price
volatility,
illiquidity
and
possibility
of
default.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
Z
0.75%
A
1.00%
Your
Fund’s
Expenses
Franklin
Mutual
Shares
Fund
31
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
1/1/23
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
Ending
Account
Value
6/30/23
Expenses
Paid
During
Period
1/1/23–6/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
Z
$1,000
$1,054.70
$3.84
$1,021.06
$3.78
0.75%
A
$1,000
$1,053.20
$5.11
$1,019.82
$5.03
1.00%
C
$1,000
$1,049.20
$8.91
$1,016.10
$8.77
1.75%
R
$1,000
$1,052.10
$6.38
$1,018.58
$6.28
1.25%
R6
$1,000
$1,054.70
$3.60
$1,021.29
$3.54
0.71%
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Beacon
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
Z
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$14.37
$17.96
$16.48
$16.40
$13.76
$16.61
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.20
0.28
0.26
0.51
c
0.33
0.29
Net
realized
and
unrealized
gains
(losses)
0.89
(2.45)
2.45
0.12
3.06
(1.68)
Total
from
investment
operations
........
1.09
(2.17)
2.71
0.63
3.39
(1.39)
Less
distributions
from:
Net
investment
income
..............
—
(0.23)
(0.37)
(0.45)
(0.36)
(0.31)
Net
realized
gains
.................
—
(1.19)
(0.86)
(0.10)
(0.39)
(1.15)
Total
distributions
...................
—
(1.42)
(1.23)
(0.55)
(0.75)
(1.46)
Net
asset
value,
end
of
period
..........
$15.46
$14.37
$17.96
$16.48
$16.40
$13.76
Total
return
d
.......................
7.59%
(11.67)%
16.68%
4.08%
24.96%
(8.24)%
Ratios
to
average
net
assets
e
Expenses
f,g
........................
0.77%
0.77%
0.81%
0.82%
0.81%
h
0.80%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
i
0.01%
0.02%
0.02%
0.01%
Net
investment
income
...............
2.65%
1.73%
1.41%
3.56%
c
2.11%
1.77%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,069,093
$2,010,947
$2,508,213
$2,320,077
$2,600,744
$2,271,217
Portfolio
turnover
rate
................
23.03%
49.68%
40.89%
42.37%
30.72%
47.20%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.56%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Beacon
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
33
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$14.19
$17.76
$16.30
$16.24
$13.63
$16.47
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.18
0.23
0.21
0.47
c
0.29
0.25
Net
realized
and
unrealized
gains
(losses)
0.87
(2.42)
2.43
0.10
3.03
(1.67)
Total
from
investment
operations
........
1.05
(2.19)
2.64
0.57
3.32
(1.42)
Less
distributions
from:
Net
investment
income
..............
—
(0.19)
(0.32)
(0.41)
(0.32)
(0.27)
Net
realized
gains
.................
—
(1.19)
(0.86)
(0.10)
(0.39)
(1.15)
Total
distributions
...................
—
(1.38)
(1.18)
(0.51)
(0.71)
(1.42)
Net
asset
value,
end
of
period
..........
$15.24
$14.19
$17.76
$16.30
$16.24
$13.63
Total
return
d
.......................
7.40%
(11.91)%
16.46%
3.75%
24.69%
(8.49)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.02%
1.02%
1.06%
1.07%
1.06%
h
1.05%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
i
0.01%
0.02%
0.02%
0.01%
Net
investment
income
...............
2.40%
1.48%
1.16%
3.32%
c
1.86%
1.52%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$819,489
$798,281
$987,817
$893,378
$1,028,482
$890,294
Portfolio
turnover
rate
................
23.03%
49.68%
40.89%
42.37%
30.72%
47.20%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.28
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.33%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Beacon
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$14.32
$17.88
$16.37
$16.29
$13.65
$16.34
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.12
0.12
0.08
0.39
c
0.17
0.13
Net
realized
and
unrealized
gains
(losses)
0.88
(2.43)
2.43
0.06
3.04
(1.65)
Total
from
investment
operations
........
1.00
(2.31)
2.51
0.45
3.21
(1.52)
Less
distributions
from:
Net
investment
income
..............
—
(0.06)
(0.14)
(0.27)
(0.18)
(0.02)
Net
realized
gains
.................
—
(1.19)
(0.86)
(0.10)
(0.39)
(1.15)
Total
distributions
...................
—
(1.25)
(1.00)
(0.37)
(0.57)
(1.17)
Net
asset
value,
end
of
period
..........
$15.32
$14.32
$17.88
$16.37
$16.29
$13.65
Total
return
d
.......................
6.98%
(12.55)%
15.55%
2.96%
23.74%
(9.19)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.77%
1.77%
1.80%
1.82%
1.81%
h
1.80%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
i
0.01%
0.02%
0.02%
0.01%
Net
investment
income
...............
1.62%
0.75%
0.43%
2.75%
c
1.11%
0.77%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$17,746
$18,813
$27,853
$35,273
$52,620
$59,828
Portfolio
turnover
rate
................
23.03%
49.68%
40.89%
42.37%
30.72%
47.20%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.28
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.76%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Beacon
Fund
(continued)
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.97
$17.51
$16.09
$16.03
$13.46
$16.28
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.16
0.19
0.16
0.44
c
0.24
0.20
Net
realized
and
unrealized
gains
(losses)
0.86
(2.38)
2.40
0.09
3.01
(1.64)
Total
from
investment
operations
........
1.02
(2.19)
2.56
0.53
3.25
(1.44)
Less
distributions
from:
Net
investment
income
..............
—
(0.16)
(0.28)
(0.37)
(0.29)
(0.23)
Net
realized
gains
.................
—
(1.19)
(0.86)
(0.10)
(0.39)
(1.15)
Total
distributions
...................
—
(1.35)
(1.14)
(0.47)
(0.68)
(1.38)
Net
asset
value,
end
of
period
..........
$14.99
$13.97
$17.51
$16.09
$16.03
$13.46
Total
return
d
.......................
7.30%
(12.08)%
16.12%
3.49%
24.33%
(8.65)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.27%
1.27%
1.31%
1.32%
1.31%
h
1.30%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
i
0.01%
0.02%
0.02%
0.01%
Net
investment
income
...............
2.14%
1.22%
0.92%
3.16%
c
1.61%
1.27%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,194
$1,329
$1,388
$1,262
$1,769
$1,662
Portfolio
turnover
rate
................
23.03%
49.68%
40.89%
42.37%
30.72%
47.20%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.28
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.17%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Beacon
Fund
(continued)
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Semiannual
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The
accompanying
notes
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an
integral
part
of
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financial
statements.
36
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$14.37
$17.96
$16.47
$16.40
$13.75
$16.60
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.20
0.30
0.26
0.53
c
0.34
0.30
Net
realized
and
unrealized
gains
(losses)
0.89
(2.46)
2.47
0.10
3.07
(1.68)
Total
from
investment
operations
........
1.09
(2.16)
2.73
0.63
3.41
(1.38)
Less
distributions
from:
Net
investment
income
..............
—
(0.24)
(0.38)
(0.46)
(0.37)
(0.32)
Net
realized
gains
.................
—
(1.19)
(0.86)
(0.10)
(0.39)
(1.15)
Total
distributions
...................
—
(1.43)
(1.24)
(0.56)
(0.76)
(1.47)
Net
asset
value,
end
of
period
..........
$15.46
$14.37
$17.96
$16.47
$16.40
$13.75
Total
return
d
.......................
7.59%
(11.61)%
16.83%
4.08%
25.13%
(8.18)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
f
..........................
0.73%
0.71%
0.77%
0.78%
0.76%
0.75%
Expenses
net
of
waiver
and
payments
by
affiliates
f,g
.........................
0.71%
0.70%
0.75%
0.75%
0.74%
0.73%
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
h
0.01%
0.02%
0.02%
0.01%
Net
investment
income
...............
2.61%
1.83%
1.39%
3.67%
c
2.18%
1.84%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$90,567
$101,313
$151,226
$70,839
$90,220
$79,358
Portfolio
turnover
rate
................
23.03%
49.68%
40.89%
42.37%
30.72%
47.20%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.68%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited),
June
30,
2023
Franklin
Mutual
Beacon
Fund
franklintempleton.com
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
96.7%
Aerospace
&
Defense
3.1%
Airbus
SE
...........................................
France
635,949
$
91,955,038
Air
Freight
&
Logistics
2.2%
United
Parcel
Service,
Inc.,
B
............................
United
States
367,543
65,882,083
Automobile
Components
0.0%
†
a,b,c
International
Automotive
Components
Group
Brazil
LLC
........
Brazil
2,846,329
90,775
Banks
9.8%
BNP
Paribas
SA
......................................
France
1,247,577
78,736,753
DBS
Group
Holdings
Ltd.
...............................
Singapore
3,781,657
88,315,478
JPMorgan
Chase
&
Co.
.................................
United
States
871,018
126,680,858
293,733,089
Beverages
3.4%
Heineken
NV
........................................
Netherlands
976,984
100,478,928
Building
Products
3.0%
Johnson
Controls
International
plc
.........................
United
States
1,316,811
89,727,502
Capital
Markets
3.3%
BlackRock,
Inc.
.......................................
United
States
140,708
97,248,927
Consumer
Staples
Distribution
&
Retail
2.0%
Seven
&
i
Holdings
Co.
Ltd.
..............................
Japan
1,394,536
60,255,320
Containers
&
Packaging
2.2%
International
Paper
Co.
.................................
United
States
2,107,492
67,039,321
Diversified
Telecommunication
Services
3.1%
Deutsche
Telekom
AG
..................................
Germany
4,316,623
94,190,940
Energy
Equipment
&
Services
2.3%
Schlumberger
NV
.....................................
United
States
1,427,510
70,119,291
Entertainment
2.0%
b
Activision
Blizzard,
Inc.
.................................
United
States
700,303
59,035,543
Financial
Services
2.8%
Global
Payments,
Inc.
..................................
United
States
848,564
83,600,525
Health
Care
Equipment
&
Supplies
4.0%
Medtronic
plc
........................................
United
States
1,354,332
119,316,649
Health
Care
Providers
&
Services
2.3%
Elevance
Health,
Inc.
..................................
United
States
154,910
68,824,964
Household
Products
3.3%
Reckitt
Benckiser
Group
plc
.............................
United
Kingdom
1,330,606
99,996,193
Insurance
3.1%
Hartford
Financial
Services
Group,
Inc.
(The)
................
United
States
1,293,495
93,157,510
Interactive
Media
&
Services
2.9%
b
Meta
Platforms,
Inc.,
A
.................................
United
States
307,091
88,128,975
Machinery
3.1%
Parker-Hannifin
Corp.
..................................
United
States
235,646
91,911,366
Media
3.2%
b
Charter
Communications,
Inc.,
A
..........................
United
States
264,440
97,147,323
Metals
&
Mining
2.3%
Rio
Tinto
plc
.........................................
Australia
1,104,246
70,174,508
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Beacon
Fund
(continued)
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Semiannual
Report
The
accompanying
notes
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an
integral
part
of
these
financial
statements.
38
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Oil,
Gas
&
Consumable
Fuels
3.7%
BP
plc
..............................................
United
Kingdom
18,946,438
$
110,313,321
Personal
Care
Products
3.0%
Haleon
plc
..........................................
United
States
22,026,752
90,408,133
Pharmaceuticals
11.5%
Eli
Lilly
&
Co.
........................................
United
States
145,255
68,121,690
GSK
plc
............................................
United
States
5,236,438
92,803,097
Merck
&
Co.,
Inc.
.....................................
United
States
637,237
73,530,777
Novartis
AG,
ADR
.....................................
Switzerland
1,076,476
108,627,193
343,082,757
Retail
REITs
2.2%
Brixmor
Property
Group,
Inc.
.............................
United
States
3,003,199
66,070,378
Software
1.9%
Gen
Digital,
Inc.
......................................
United
States
3,047,595
56,532,887
Textiles,
Apparel
&
Luxury
Goods
5.2%
Cie
Financiere
Richemont
SA
............................
Switzerland
546,897
92,905,495
Tapestry,
Inc.
........................................
United
States
1,456,949
62,357,417
155,262,912
Tobacco
2.9%
British
American
Tobacco
plc
.............................
United
Kingdom
2,650,689
88,070,323
Trading
Companies
&
Distributors
2.9%
Ferguson
plc
.........................................
United
States
550,578
86,611,425
Total
Common
Stocks
(Cost
$2,274,482,764)
....................................
2,898,366,906
Companies
in
Liquidation
0.0%
a,b,d
Walter
Energy,
Inc.,
Litigation
Trust,
Contingent
Distribution
......
United
States
5,229,000
—
Total
Companies
in
Liquidation
(Cost
$–)
......................................
—
Total
Long
Term
Investments
(Cost
$2,274,482,764)
.............................
2,898,366,906
a
Short
Term
Investments
4.3%
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
4.3%
e
FHLB,
7/03/23
.......................................
United
States
127,500,000
127,500,000
Total
U.S.
Government
and
Agency
Securities
(Cost
$127,466,000)
................
127,500,000
Total
Short
Term
Investments
(Cost
$127,466,000
)
...............................
127,500,000
a
Total
Investments
(Cost
$2,401,948,764)
101.0%
................................
$3,025,866,906
Other
Assets,
less
Liabilities
(1.0)%
...........................................
(27,778,310)
Net
Assets
100.0%
...........................................................
$2,998,088,596
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Beacon
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
See
A
bbreviations
on
page
131
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
14
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
10
regarding
restricted
securities.
d
Contingent
distributions
represent
the
right
to
receive
additional
distributions,
if
any,
during
the
reorganization
of
the
underlying
company.
Shares
represent
total
underlying
principal
of
debt
securities.
e
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
Franklin
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Series
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Financial
Highlights
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Mutual
Financial
Services
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
Z
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$23.72
$25.51
$20.89
$22.78
$19.46
$24.14
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.35
0.61
0.46
0.18
0.38
0.38
c
Net
realized
and
unrealized
gains
(losses)
(1.06)
(1.83)
4.54
(1.72)
3.38
(4.37)
Total
from
investment
operations
........
(0.71)
(1.22)
5.00
(1.54)
3.76
(3.99)
Less
distributions
from:
Net
investment
income
..............
—
(0.57)
(0.38)
(0.35)
(0.44)
(0.17)
Net
realized
gains
.................
—
—
—
—
—
(0.52)
Total
distributions
...................
—
(0.57)
(0.38)
(0.35)
(0.44)
(0.69)
Net
asset
value,
end
of
period
..........
$23.01
$23.72
$25.51
$20.89
$22.78
$19.46
Total
return
d
.......................
(2.99)%
(4.76)%
23.98%
(6.70)%
19.32%
(16.49)%
Ratios
to
average
net
assets
e
Expenses
f
.........................
1.06%
g
1.06%
g
1.12%
g
1.14%
g
1.10%
1.09%
g
Net
investment
income
...............
3.00%
2.54%
1.87%
0.99%
1.80%
1.61%
c
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$105,760
$114,507
$128,352
$104,183
$139,189
$142,212
Portfolio
turnover
rate
................
13.47%
31.16%
28.64%
28.18%
17.06%
33.11%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.29%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
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Mutual
Financial
Services
Fund
(continued)
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accompanying
notes
are
an
integral
part
of
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financial
statements.
Semiannual
Report
41
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$23.80
$25.59
$20.95
$22.85
$19.52
$24.21
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.32
0.55
0.40
0.26
0.33
0.31
c
Net
realized
and
unrealized
gains
(losses)
(1.06)
(1.83)
4.56
(1.86)
3.38
(4.36)
Total
from
investment
operations
........
(0.74)
(1.28)
4.96
(1.60)
3.71
(4.05)
Less
distributions
from:
Net
investment
income
..............
—
(0.51)
(0.32)
(0.30)
(0.38)
(0.12)
Net
realized
gains
.................
—
—
—
—
—
(0.52)
Total
distributions
...................
—
(0.51)
(0.32)
(0.30)
(0.38)
(0.64)
Net
asset
value,
end
of
period
..........
$23.06
$23.80
$25.59
$20.95
$22.85
$19.52
Total
return
d
.......................
(3.11)%
(4.99)%
23.70%
(6.95)%
19.06%
(16.72)%
Ratios
to
average
net
assets
e
Expenses
f
.........................
1.31%
g
1.31%
g
1.37%
g
1.39%
g
1.35%
1.34%
g
Net
investment
income
...............
2.73%
2.30%
1.62%
1.42%
1.55%
1.36%
c
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$209,145
$230,921
$259,203
$209,222
$278,968
$298,878
Portfolio
turnover
rate
................
13.47%
31.16%
28.64%
28.18%
17.06%
33.11%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.04%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
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Mutual
Financial
Services
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42
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$23.68
$25.41
$20.78
$22.65
$19.32
$24.08
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.22
0.38
0.20
0.12
0.18
0.15
c
Net
realized
and
unrealized
gains
(losses)
(1.04)
(1.83)
4.52
(1.86)
3.32
(4.33)
Total
from
investment
operations
........
(0.82)
(1.45)
4.72
(1.74)
3.50
(4.18)
Less
distributions
from:
Net
investment
income
..............
—
(0.28)
(0.09)
(0.13)
(0.17)
(0.06)
Net
realized
gains
.................
—
—
—
—
—
(0.52)
Total
distributions
...................
—
(0.28)
(0.09)
(0.13)
(0.17)
(0.58)
Net
asset
value,
end
of
period
..........
$22.86
$23.68
$25.41
$20.78
$22.65
$19.32
Total
return
d
.......................
(3.46)%
(5.71)%
22.74%
(7.66)%
18.15%
(17.35)%
Ratios
to
average
net
assets
e
Expenses
f
.........................
2.06%
g
2.07%
g
2.12%
g
2.14%
g
2.10%
2.09%
g
Net
investment
income
...............
1.92%
1.58%
0.83%
0.69%
0.80%
0.61%
c
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$14,590
$18,260
$25,503
$27,498
$46,132
$58,610
Portfolio
turnover
rate
................
13.47%
31.16%
28.64%
28.18%
17.06%
33.11%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.29%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
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Series
Funds
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Mutual
Financial
Services
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financial
statements.
Semiannual
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a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$23.88
$25.68
$21.03
$22.93
$19.58
$24.30
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.38
0.62
0.47
0.33
0.42
0.41
c
Net
realized
and
unrealized
gains
(losses)
(1.08)
(1.82)
4.58
(1.85)
3.40
(4.41)
Total
from
investment
operations
........
(0.70)
(1.20)
5.05
(1.52)
3.82
(4.00)
Less
distributions
from:
Net
investment
income
..............
—
(0.60)
(0.40)
(0.38)
(0.47)
(0.20)
Net
realized
gains
.................
—
—
—
—
—
(0.52)
Total
distributions
...................
—
(0.60)
(0.40)
(0.38)
(0.47)
(0.72)
Net
asset
value,
end
of
period
..........
$23.18
$23.88
$25.68
$21.03
$22.93
$19.58
Total
return
d
.......................
(2.93)%
(4.66)%
24.09%
(6.57)%
19.51%
(16.41)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.11%
1.08%
1.19%
1.16%
1.05%
1.06%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.00%
0.95%
1.02%
1.02%
0.97%
0.97%
Net
investment
income
...............
3.28%
2.55%
1.89%
1.83%
1.93%
1.73%
c
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,439
$2,086
$2,995
$2,191
$2,931
$3,371
Portfolio
turnover
rate
................
13.47%
31.16%
28.64%
28.18%
17.06%
33.11%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.41%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited),
June
30,
2023
Franklin
Mutual
Financial
Services
Fund
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Semiannual
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part
of
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financial
statements.
44
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
94.6%
Banks
34.1%
a
AB&T
Financial
Corp.
..................................
United
States
226,100
$
118,307
Bank
of
America
Corp.
.................................
United
States
204,796
5,875,597
b
BAWAG
Group
AG,
144A,
Reg
S
..........................
Austria
77,389
3,568,127
BNP
Paribas
SA
......................................
France
151,062
9,533,786
CaixaBank
SA
........................................
Spain
1,525,110
6,318,065
Citizens
Financial
Group,
Inc.
............................
United
States
368,317
9,605,707
Columbia
Banking
System,
Inc.
...........................
United
States
472,815
9,588,688
DBS
Group
Holdings
Ltd.
...............................
Singapore
147,729
3,450,011
ING
Groep
NV
.......................................
Netherlands
727,182
9,804,473
JPMorgan
Chase
&
Co.
.................................
United
States
90,930
13,224,859
PNC
Financial
Services
Group,
Inc.
(The)
...................
United
States
74,409
9,371,814
Primis
Financial
Corp.
..................................
United
States
393,187
3,310,635
Synovus
Financial
Corp.
................................
United
States
278,537
8,425,744
UniCredit
SpA
........................................
Italy
463,323
10,774,903
Wells
Fargo
&
Co.
.....................................
United
States
242,145
10,334,749
113,305,465
Capital
Markets
5.3%
BlackRock,
Inc.
.......................................
United
States
12,709
8,783,698
Deutsche
Bank
AG
....................................
Germany
855,644
8,996,012
17,779,710
Consumer
Finance
3.3%
Capital
One
Financial
Corp.
.............................
United
States
99,374
10,868,534
Financial
Services
10.4%
c
Fiserv,
Inc.
..........................................
United
States
79,647
10,047,469
Global
Payments,
Inc.
..................................
United
States
87,569
8,627,298
Voya
Financial,
Inc.
....................................
United
States
220,359
15,801,944
34,476,711
Household
Durables
3.2%
Cairn
Homes
plc
......................................
Ireland
8,521,149
10,789,393
Insurance
29.2%
ASR
Nederland
NV
....................................
Netherlands
309,174
13,946,106
c
BRP
Group,
Inc.,
A
....................................
United
States
53,266
1,319,932
China
Pacific
Insurance
Group
Co.
Ltd.,
H
...................
China
2,084,821
5,412,431
Conduit
Holdings
Ltd.
..................................
United
States
1,667,976
9,765,499
Everest
Re
Group
Ltd.
.................................
United
States
43,470
14,860,654
Hartford
Financial
Services
Group,
Inc.
(The)
................
United
States
186,963
13,465,075
International
General
Insurance
Holdings
Ltd.
................
Jordan
1,335,093
11,922,381
MetLife,
Inc.
.........................................
United
States
138,895
7,851,734
NN
Group
NV
........................................
Netherlands
307,559
11,386,158
Willis
Towers
Watson
plc
................................
United
States
29,372
6,917,106
96,847,076
Office
REITs
1.4%
Vornado
Realty
Trust
...................................
United
States
249,971
4,534,474
Professional
Services
1.9%
SS&C
Technologies
Holdings,
Inc.
.........................
United
States
103,672
6,282,523
Real
Estate
Management
&
Development
3.3%
c
CBRE
Group,
Inc.,
A
...................................
United
States
42,882
3,461,006
c
Cushman
&
Wakefield
plc
...............................
United
States
333,883
2,731,163
Savills
plc
...........................................
United
Kingdom
449,657
4,860,179
11,052,348
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Financial
Services
Fund
(continued)
franklintempleton.com
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
At
June
3
0,
2023
,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
1
(
d
). 
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Trading
Companies
&
Distributors
2.5%
c
AerCap
Holdings
NV
...................................
Ireland
129,347
$
8,216,122
Total
Common
Stocks
(Cost
$280,756,590)
.....................................
314,152,356
Short
Term
Investments
4.9%
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
4.9%
d
FHLB,
7/03/23
.......................................
United
States
16,400,000
16,400,000
Total
U.S.
Government
and
Agency
Securities
(Cost
$16,395,627)
.................
16,400,000
Total
Short
Term
Investments
(Cost
$16,395,627
)
................................
16,400,000
a
Total
Investments
(Cost
$297,152,217)
99.5%
...................................
$330,552,356
Other
Assets,
less
Liabilities
0.5%
.............................................
1,381,988
Net
Assets
100.0%
...........................................................
$331,934,344
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
See
Note
12
regarding
holdings
of
5%
voting
securities.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2023,
the
value
of
this
security
was
$3,568,127,
representing
1.1%
of
net
assets.
c
Non-income
producing.
d
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Foreign
exchange
contracts
Foreign
Exchange
EUR/USD
...................
Short
62
$
8,488,575
9/18/23
$
(111,888)
Foreign
Exchange
GBP/USD
...................
Short
56
4,444,650
9/18/23
(36,538)
Total
Futures
Contracts
......................................................................
$(148,426)
*
As
of
period
end.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Financial
Services
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
At
June
30,
2023,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1(d). 
See
Note 11 regarding
other
derivative
information.
See
Abbreviations
on
page
131
.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
Euro
.............
BOFA
Sell
10,194,503
11,230,876
7/11/23
$
102,017
$
—
Euro
.............
HSBK
Sell
1,635,094
1,802,717
7/11/23
18,856
(1,094)
Euro
.............
UBSW
Sell
10,763,082
11,845,124
7/11/23
97,889
(2,316)
British
Pound
......
BOFA
Buy
306,712
383,852
7/17/23
5,704
—
British
Pound
......
HSBK
Buy
172,847
214,517
7/17/23
5,016
—
British
Pound
......
UBSW
Buy
2,553,000
3,197,059
7/17/23
45,512
—
British
Pound
......
UBSW
Sell
8,736,849
10,968,603
7/17/23
—
(128,087)
Total
Forward
Exchange
Contracts
...................................................
$274,994
$(131,497)
Net
unrealized
appreciation
(depreciation)
............................................
$143,497
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Global
Discovery
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
Z
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$27.18
$31.58
$28.77
$31.19
$26.86
$32.42
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.32
0.59
c
0.42
0.96
d
0.67
0.58
Net
realized
and
unrealized
gains
(losses)
2.68
(2.20)
5.15
(2.38)
5.91
(4.13)
Total
from
investment
operations
........
3.00
(1.61)
5.57
(1.42)
6.58
(3.55)
Less
distributions
from:
Net
investment
income
..............
—
(0.56)
(0.81)
(0.83)
(0.70)
(0.64)
Net
realized
gains
.................
—
(2.23)
(1.95)
(0.17)
(1.55)
(1.37)
Total
distributions
...................
—
(2.79)
(2.76)
(1.00)
(2.25)
(2.01)
Net
asset
value,
end
of
period
..........
$30.18
$27.18
$31.58
$28.77
$31.19
$26.86
Total
return
e
.......................
11.04%
(4.70)%
19.67%
(4.38)%
24.70%
(10.78)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
g
..........................
0.97%
0.95%
1.04%
1.03%
1.00%
0.97%
Expenses
net
of
waiver
and
payments
by
affiliates
g
,
h
.........................
0.97%
0.95%
i
1.02%
1.03%
i
1.00%
i
0.97%
i
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
j
—%
j
0.02%
0.01%
0.02%
—%
j
Net
investment
income
...............
2.24%
1.98%
c
1.28%
3.66%
d
2.20%
1.82%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$3,039,487
$2,857,597
$3,355,158
$3,274,956
$5,176,787
$5,114,274
Portfolio
turnover
rate
................
19.39%
53.26%
40.67%
17.25%
14.08%
14.70%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.71%.
d
Net
investment
income
per
share
includes
approximately
$0.43
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.02%.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
j
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Global
Discovery
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$26.44
$30.81
$28.12
$30.51
$26.32
$31.80
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.28
0.50
c
0.33
0.86
d
0.58
0.49
Net
realized
and
unrealized
gains
(losses)
2.60
(2.15)
5.04
(2.32)
5.78
(4.04)
Total
from
investment
operations
........
2.88
(1.65)
5.37
(1.46)
6.36
(3.55)
Less
distributions
from:
Net
investment
income
..............
—
(0.49)
(0.73)
(0.76)
(0.62)
(0.56)
Net
realized
gains
.................
—
(2.23)
(1.95)
(0.17)
(1.55)
(1.37)
Total
distributions
...................
—
(2.72)
(2.68)
(0.93)
(2.17)
(1.93)
Net
asset
value,
end
of
period
..........
$29.32
$26.44
$30.81
$28.12
$30.51
$26.32
Total
return
e
.......................
10.89%
(4.95)%
19.40%
(4.61)%
24.37%
(10.99)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
g
..........................
1.22%
1.20%
1.29%
1.28%
1.25%
1.22%
Expenses
net
of
waiver
and
payments
by
affiliates
g
,
h
.........................
1.22%
1.20%
i
1.27%
1.28%
i
1.25%
i
1.22%
i
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
j
—%
j
0.02%
0.01%
0.02%
—%
j
Net
investment
income
...............
1.99%
1.72%
c
1.03%
3.39%
d
1.95%
1.57%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$5,033,345
$4,749,259
$5,618,446
$5,358,016
$7,683,644
$7,461,444
Portfolio
turnover
rate
................
19.39%
53.26%
40.67%
17.25%
14.08%
14.70%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.45%.
d
Net
investment
income
per
share
includes
approximately
$0.42
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.75%.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
j
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Global
Discovery
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
49
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$26.60
$30.92
$28.12
$30.46
$26.25
$31.44
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.17
0.28
c
0.09
0.67
d
0.36
0.26
Net
realized
and
unrealized
gains
(losses)
2.61
(2.13)
5.04
(2.34)
5.74
(3.98)
Total
from
investment
operations
........
2.78
(1.85)
5.13
(1.67)
6.10
(3.72)
Less
distributions
from:
Net
investment
income
..............
—
(0.24)
(0.38)
(0.50)
(0.34)
(0.10)
Net
realized
gains
.................
—
(2.23)
(1.95)
(0.17)
(1.55)
(1.37)
Total
distributions
...................
—
(2.47)
(2.33)
(0.67)
(1.89)
(1.47)
Net
asset
value,
end
of
period
..........
$29.38
$26.60
$30.92
$28.12
$30.46
$26.25
Total
return
e
.......................
10.45%
(5.63)%
18.50%
(5.32)%
23.43%
(11.70)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
g
..........................
1.97%
1.95%
2.04%
2.03%
2.00%
1.97%
Expenses
net
of
waiver
and
payments
by
affiliates
g
,
h
.........................
1.97%
1.95%
i
2.02%
2.03%
i
2.00%
i
1.97%
i
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
j
—%
j
0.02%
0.01%
0.02%
—%
j
Net
investment
income
...............
1.20%
0.97%
c
0.29%
2.66%
d
1.20%
0.82%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$197,801
$221,344
$335,605
$494,606
$872,717
$1,054,412
Portfolio
turnover
rate
................
19.39%
53.26%
40.67%
17.25%
14.08%
14.70%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.70%.
d
Net
investment
income
per
share
includes
approximately
$0.42
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.01%.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
j
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Global
Discovery
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$26.00
$30.34
$27.70
$30.08
$25.97
$31.37
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.24
0.42
c
0.24
0.78
d
0.50
0.41
Net
realized
and
unrealized
gains
(losses)
2.56
(2.11)
4.97
(2.29)
5.69
(3.97)
Total
from
investment
operations
........
2.80
(1.69)
5.21
(1.51)
6.19
(3.56)
Less
distributions
from:
Net
investment
income
..............
—
(0.42)
(0.62)
(0.70)
(0.53)
(0.47)
Net
realized
gains
.................
—
(2.23)
(1.95)
(0.17)
(1.55)
(1.37)
Total
distributions
...................
—
(2.65)
(2.57)
(0.87)
(2.08)
(1.84)
Net
asset
value,
end
of
period
..........
$28.80
$26.00
$30.34
$27.70
$30.08
$25.97
Total
return
e
.......................
10.77%
(5.17)%
19.10%
(4.87)%
24.09%
(11.24)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
g
..........................
1.47%
1.45%
1.54%
1.53%
1.50%
1.47%
Expenses
net
of
waiver
and
payments
by
affiliates
g
,
h
.........................
1.47%
1.45%
i
1.52%
1.53%
i
1.50%
i
1.47%
i
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
j
—%
j
0.02%
0.01%
0.02%
—%
j
Net
investment
income
...............
1.74%
1.47%
c
0.79%
3.13%
d
1.70%
1.32%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$113,849
$109,826
$136,983
$175,393
$251,089
$274,086
Portfolio
turnover
rate
................
19.39%
53.26%
40.67%
17.25%
14.08%
14.70%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.20%.
d
Net
investment
income
per
share
includes
approximately
$0.41
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.48%.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
j
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
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Mutual
Global
Discovery
Fund
(continued)
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accompanying
notes
are
an
integral
part
of
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statements.
Semiannual
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51
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$27.16
$31.57
$28.75
$31.17
$26.85
$32.41
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.33
0.62
c
0.44
0.97
d
0.70
0.62
Net
realized
and
unrealized
gains
(losses)
2.68
(2.21)
5.18
(2.35)
5.90
(4.13)
Total
from
investment
operations
........
3.01
(1.59)
5.62
(1.38)
6.60
(3.51)
Less
distributions
from:
Net
investment
income
..............
—
(0.59)
(0.85)
(0.87)
(0.73)
(0.68)
Net
realized
gains
.................
—
(2.23)
(1.95)
(0.17)
(1.55)
(1.37)
Total
distributions
...................
—
(2.82)
(2.80)
(1.04)
(2.28)
(2.05)
Net
asset
value,
end
of
period
..........
$30.17
$27.16
$31.57
$28.75
$31.17
$26.85
Total
return
e
.......................
11.08%
(4.65)%
19.84%
(4.27)%
24.80%
(10.67)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
g
..........................
0.89%
0.86%
0.95%
0.92%
0.90%
0.88%
Expenses
net
of
waiver
and
payments
by
affiliates
g
,
h
.........................
0.89%
0.86%
i
0.92%
0.92%
i
0.89%
0.87%
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
j
—%
j
0.02%
0.01%
0.02%
—%
j
Net
investment
income
...............
2.33%
2.07%
c
1.35%
3.73%
d
2.31%
1.92%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$565,154
$525,379
$653,091
$843,143
$1,295,457
$1,418,812
Portfolio
turnover
rate
................
19.39%
53.26%
40.67%
17.25%
14.08%
14.70%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.08
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.79%.
d
Net
investment
income
per
share
includes
approximately
$0.43
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.08%.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
j
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited),
June
30,
2023
Franklin
Mutual
Global
Discovery
Fund
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of
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financial
statements.
52
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
96.5%
Aerospace
&
Defense
1.6%
Airbus
SE
...........................................
France
1,016,566
$
146,990,349
Automobile
Components
2.0%
Denso
Corp.
.........................................
Japan
2,661,712
179,563,045
a,b,c
International
Automotive
Components
Group
Brazil
LLC
........
Brazil
3,819,425
121,809
179,684,854
Automobiles
2.1%
General
Motors
Co.
....................................
United
States
4,768,010
183,854,466
Banks
5.6%
BNP
Paribas
SA
......................................
France
2,505,920
158,152,966
DBS
Group
Holdings
Ltd.
...............................
Singapore
6,566,367
153,348,609
JPMorgan
Chase
&
Co.
.................................
United
States
1,283,420
186,660,605
498,162,180
Biotechnology
0.8%
b
Horizon
Therapeutics
plc
................................
United
States
695,456
71,527,650
Building
Products
1.7%
Johnson
Controls
International
plc
.........................
United
States
2,282,367
155,520,487
Capital
Markets
1.6%
BlackRock,
Inc.
.......................................
United
States
207,617
143,492,413
Chemicals
2.2%
b,d
Covestro
AG,
144A,
Reg
S
..............................
Germany
3,735,206
194,370,612
Consumer
Finance
2.2%
Capital
One
Financial
Corp.
.............................
United
States
1,809,287
197,881,719
Consumer
Staples
Distribution
&
Retail
1.2%
Seven
&
i
Holdings
Co.
Ltd.
..............................
Japan
2,564,546
110,809,286
Diversified
Telecommunication
Services
2.6%
Deutsche
Telekom
AG
..................................
Germany
10,734,020
234,221,852
Electrical
Equipment
1.7%
Mitsubishi
Electric
Corp.
................................
Japan
10,631,796
150,320,907
Energy
Equipment
&
Services
1.9%
Schlumberger
NV
.....................................
United
States
3,538,450
173,808,664
Entertainment
3.5%
b
Activision
Blizzard,
Inc.
.................................
United
States
2,077,381
175,123,218
b
Walt
Disney
Co.
(The)
..................................
United
States
1,577,824
140,868,127
315,991,345
Financial
Services
5.5%
b
Fiserv,
Inc.
..........................................
United
States
1,380,750
174,181,612
Global
Payments,
Inc.
..................................
United
States
1,533,256
151,056,381
Voya
Financial,
Inc.
....................................
United
States
2,284,522
163,823,073
489,061,066
Food
Products
3.7%
Danone
SA
..........................................
France
2,805,972
171,975,395
Kraft
Heinz
Co.
(The)
..................................
United
States
4,503,331
159,868,250
331,843,645
Health
Care
Equipment
&
Supplies
2.2%
Medtronic
plc
........................................
United
States
2,263,951
199,454,083
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Global
Discovery
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
53
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Health
Care
Providers
&
Services
7.3%
CVS
Health
Corp.
.....................................
United
States
2,631,984
$
181,949,054
Elevance
Health,
Inc.
..................................
United
States
385,559
171,300,008
Fresenius
SE
&
Co.
KGaA
...............................
Germany
5,940,043
164,772,680
Humana,
Inc.
........................................
United
States
295,099
131,947,616
649,969,358
Household
Durables
1.5%
DR
Horton,
Inc.
.......................................
United
States
1,073,162
130,593,084
Household
Products
1.6%
Reckitt
Benckiser
Group
plc
.............................
United
Kingdom
1,869,156
140,468,692
Industrial
Conglomerates
1.5%
Siemens
AG
.........................................
Germany
816,007
136,041,530
Insurance
5.4%
Everest
Re
Group
Ltd.
.................................
United
States
468,636
160,207,903
NN
Group
NV
........................................
Netherlands
4,664,045
172,667,863
Willis
Towers
Watson
plc
................................
United
States
649,099
152,862,815
485,738,581
Interactive
Media
&
Services
1.5%
b
Meta
Platforms,
Inc.,
A
.................................
United
States
475,542
136,471,043
IT
Services
2.0%
Capgemini
SE
........................................
France
918,365
173,901,505
Machinery
1.7%
Parker-Hannifin
Corp.
..................................
United
States
383,148
149,443,046
Media
2.1%
b
Charter
Communications,
Inc.,
A
..........................
United
States
510,181
187,425,194
Metals
&
Mining
1.5%
Rio
Tinto
plc
.........................................
Australia
2,095,517
133,169,488
Oil,
Gas
&
Consumable
Fuels
5.8%
BP
plc
..............................................
United
Kingdom
32,258,588
187,821,689
Shell
plc
............................................
Netherlands
5,657,101
168,760,861
Williams
Cos.,
Inc.
(The)
................................
United
States
5,057,500
165,026,225
521,608,775
Personal
Care
Products
1.9%
Haleon
plc
..........................................
United
States
40,841,580
167,633,022
Pharmaceuticals
7.4%
Eli
Lilly
&
Co.
........................................
United
States
283,824
133,107,780
GSK
plc
............................................
United
States
9,653,704
171,088,367
Merck
&
Co.,
Inc.
.....................................
United
States
1,080,291
124,654,778
Novartis
AG,
ADR
.....................................
Switzerland
2,335,621
235,687,515
664,538,440
Real
Estate
Management
&
Development
1.9%
b
CBRE
Group,
Inc.,
A
...................................
United
States
2,065,293
166,689,798
Semiconductors
&
Semiconductor
Equipment
2.7%
b
Renesas
Electronics
Corp.
..............................
Japan
8,456,214
159,610,453
b
Tower
Semiconductor
Ltd.
...............................
Israel
2,107,861
79,086,944
238,697,397
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Global
Discovery
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
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integral
part
of
these
financial
statements.
54
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Software
1.5%
b
Check
Point
Software
Technologies
Ltd.
....................
Israel
1,078,359
$
135,463,458
Technology
Hardware,
Storage
&
Peripherals
1.9%
Samsung
Electronics
Co.
Ltd.
............................
South
Korea
3,124,651
172,063,986
Tobacco
1.9%
British
American
Tobacco
plc
.............................
United
Kingdom
5,092,568
169,202,840
Trading
Companies
&
Distributors
3.3%
b
AerCap
Holdings
NV
...................................
Ireland
2,910,228
184,857,683
Ferguson
plc
.........................................
United
States
710,268
111,732,259
296,589,942
Total
Common
Stocks
(Cost
$6,817,648,894)
....................................
8,632,704,757
Principal
Amount
*
Corporate
Bonds
0.5%
Pharmaceuticals
0.4%
d
Bausch
Health
Americas,
Inc.
,
Senior
Note,
144A,
9.25%,
4/01/26
......................
United
States
33,966,000
28,653,888
Senior
Note,
144A,
8.5%,
1/31/27
.......................
United
States
15,606,000
8,563,168
d
Bausch
Health
Cos.,
Inc.
,
Senior
Note
,
144A,
9
%
,
12/15/25
......
United
States
1,290,000
1,126,860
38,343,916
Software
0.1%
d
Veritas
US,
Inc.
/
Veritas
Bermuda
Ltd.
,
Senior
Secured
Note
,
144A,
7.5
%
,
9/01/25
......................................
United
States
8,153,000
6,627,049
Total
Corporate
Bonds
(Cost
$58,104,184)
......................................
44,970,965
e
Senior
Floating
Rate
Interests
0.8%
Commercial
Services
&
Supplies
0.5%
f,g
Neptune
BidCo
US,
Inc.
,
First
Lien,
CME
Term
Loan,
A
,
9.754
%
,
(
3-month
SOFR
+
4.75
%
),
10/11/28
......................
United
States
48,811,000
42,496,077
Professional
Services
0.3%
f,g
CoreLogic
,
Inc.
,
First
Lien,
Initial
Term
Loan
,
8.75
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
6/02/28
...............................
United
States
35,998,161
32,587,335
Total
Senior
Floating
Rate
Interests
(Cost
$74,523,234)
..........................
75,083,412
Shares
a
Companies
in
Liquidation
0.0%
a,b,h
Walter
Energy,
Inc.,
Litigation
Trust,
Contingent
Distribution
......
United
States
30,996,000
—
Total
Companies
in
Liquidation
(Cost
$–)
......................................
—
Total
Long
Term
Investments
(Cost
$6,950,276,312)
.............................
8,752,759,134
a
Short
Term
Investments
2.6%
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
2.6%
i
FHLB,
7/03/23
.......................................
United
States
218,500,000
218,500,000
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Global
Discovery
Fund
(continued)
franklintempleton.com
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accompanying
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55
Short
Term
Investments
(continued)
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
(continued)
i
U.S.
Treasury
Bills
,
7/06/23
...........................................
United
States
4,000,000
$
3,998,352
7/13/23
...........................................
United
States
5,000,000
4,993,054
8/03/23
...........................................
United
States
5,000,000
4,978,004
13,969,410
Total
U.S.
Government
and
Agency
Securities
(Cost
$232,410,333)
................
232,469,410
Total
Short
Term
Investments
(Cost
$232,410,333
)
...............................
232,469,410
a
Total
Investments
(Cost
$7,182,686,645)
100.4%
................................
$8,985,228,544
Other
Assets,
less
Liabilities
(0.4)%
...........................................
(35,592,997)
Net
Assets
100.0%
...........................................................
$8,949,635,547
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
14
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
10
regarding
restricted
securities.
d
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2023,
the
aggregate
value
of
these
securities
was
$239,341,577,
representing
2.7%
of
net
assets.
e
See
Note
1(h)
regarding
senior
floating
rate
interests.
f
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
g
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
h
Contingent
distributions
represent
the
right
to
receive
additional
distributions,
if
any,
during
the
reorganization
of
the
underlying
company.
Shares
represent
total
underlying
principal
of
debt
securities.
i
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Global
Discovery
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
At
June
30,
2023,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
(d).
At
June
3
0
,
202
3
,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1
(
d
). 
See
Note 
11
 regarding
other
derivative
information.
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Foreign
exchange
contracts
Foreign
Exchange
EUR/USD
...................
Short
1,915
$
262,187,438
9/18/23
$
(3,456,154)
Foreign
Exchange
GBP/USD
...................
Short
335
26,588,531
9/18/23
(218,577)
Total
Futures
Contracts
......................................................................
$(3,674,731)
*
As
of
period
end.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
Euro
.............
BOFA
Buy
13,810,614
15,023,597
7/11/23
$
52,801
$
—
Euro
.............
BOFA
Sell
86,190,607
94,940,393
7/11/23
850,162
—
Euro
.............
HSBK
Buy
15,248,938
16,460,431
7/11/23
186,117
—
Euro
.............
HSBK
Sell
10,114,590
11,135,864
7/11/23
98,392
(4,150)
Euro
.............
UBSW
Buy
32,814,821
35,532,690
7/11/23
311,807
(22,102)
Euro
.............
UBSW
Sell
87,779,503
96,634,200
7/11/23
815,919
(6,473)
British
Pound
......
BOFA
Buy
1,285,466
1,620,240
7/17/23
12,433
—
British
Pound
......
HSBK
Buy
1,092,356
1,355,705
7/17/23
31,698
—
British
Pound
......
HSBK
Sell
995,190
1,241,531
7/17/23
—
(22,462)
British
Pound
......
UBSW
Buy
1,176,383
1,474,141
7/17/23
19,986
—
British
Pound
......
UBSW
Sell
20,949,097
26,293,002
7/17/23
—
(314,487)
Japanese
Yen
......
UBSW
Sell
36,444,581,405
266,646,432
8/17/23
12,280,055
—
South
Korean
Won
..
HSBK
Buy
10,268,401,203
8,047,336
11/10/23
—
(194,022)
South
Korean
Won
..
HSBK
Sell
96,232,330,712
73,694,282
11/10/23
95,411
—
South
Korean
Won
..
UBSW
Sell
81,361,131,541
62,276,499
11/10/23
51,180
—
Total
Forward
Exchange
Contracts
...................................................
$14,805,961
$(563,696)
Net
unrealized
appreciation
(depreciation)
............................................
$14,242,265
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
See
Abbreviations
on
page
131
.
Franklin
Mutual
Series
Funds
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Mutual
International
Value
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accompanying
notes
are
an
integral
part
of
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financial
statements.
Semiannual
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57
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
Z
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$21.07
$21.91
$19.49
$21.31
$17.89
$20.93
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.35
0.60
0.58
0.56
c
0.54
0.49
Net
realized
and
unrealized
gains
(losses)
1.83
(0.74)
2.61
(1.92)
3.46
(2.80)
Total
from
investment
operations
........
2.18
(0.14)
3.19
(1.36)
4.00
(2.31)
Less
distributions
from:
Net
investment
income
..............
—
(0.70)
(0.77)
(0.46)
(0.58)
(0.73)
Net
asset
value,
end
of
period
..........
$23.25
$21.07
$21.91
$19.49
$21.31
$17.89
Total
return
d
.......................
10.35%
(0.51)%
16.49%
(6.23)%
22.28%
(11.12)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.00%
h
1.00%
h
1.07%
h
1.08%
h
1.04%
1.04%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
—%
—%
—%
—%
i
Net
investment
income
...............
3.16%
2.87%
2.71%
3.19%
c
2.77%
2.38%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$446,999
$414,151
$457,644
$450,864
$789,012
$958,149
Portfolio
turnover
rate
................
44.61%
32.10%
32.03%
24.04%
12.16%
35.42%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.30
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.48%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
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Mutual
International
Value
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.41
$21.24
$18.91
$20.67
$17.37
$20.33
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.31
0.53
0.51
0.54
c
0.49
0.41
Net
realized
and
unrealized
gains
(losses)
1.76
(0.72)
2.54
(1.91)
3.33
(2.69)
Total
from
investment
operations
........
2.07
(0.19)
3.05
(1.37)
3.82
(2.28)
Less
distributions
from:
Net
investment
income
..............
—
(0.64)
(0.72)
(0.39)
(0.52)
(0.68)
Net
asset
value,
end
of
period
..........
$22.48
$20.41
$21.24
$18.91
$20.67
$17.37
Total
return
d
.......................
10.14%
(0.73)%
16.23%
(6.50)%
21.98%
(11.29)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.25%
h
1.25%
h
1.32%
h
1.33%
h
1.29%
1.29%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
—%
—%
—%
—%
i
Net
investment
income
...............
2.91%
2.60%
2.45%
3.14%
c
2.52%
2.13%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$278,114
$256,163
$281,685
$272,579
$512,218
$564,038
Portfolio
turnover
rate
................
44.61%
32.10%
32.03%
24.04%
12.16%
35.42%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.44%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
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Mutual
International
Value
Fund
(continued)
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part
of
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financial
statements.
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59
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.83
$21.60
$19.17
$20.93
$17.56
$20.38
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.22
0.39
0.38
0.38
c
0.35
0.29
Net
realized
and
unrealized
gains
(losses)
1.80
(0.73)
2.54
(1.90)
3.35
(2.72)
Total
from
investment
operations
........
2.02
(0.34)
2.92
(1.52)
3.70
(2.43)
Less
distributions
from:
Net
investment
income
..............
—
(0.43)
(0.49)
(0.24)
(0.33)
(0.39)
Net
asset
value,
end
of
period
..........
$22.85
$20.83
$21.60
$19.17
$20.93
$17.56
Total
return
d
.......................
9.70%
(1.42)%
15.32%
(7.15)%
21.01%
(11.96)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
2.00%
h
2.00%
h
2.07%
h
2.08%
h
2.04%
2.04%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
—%
—%
—%
—%
i
Net
investment
income
...............
1.99%
1.91%
1.83%
2.18%
c
1.77%
1.38%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$10,911
$15,190
$24,236
$34,693
$61,743
$78,149
Portfolio
turnover
rate
................
44.61%
32.10%
32.03%
24.04%
12.16%
35.42%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.47%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
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Series
Funds
Financial
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Mutual
International
Value
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$19.90
$20.75
$18.49
$20.27
$17.05
$19.97
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.23
0.44
0.45
0.53
c
0.43
0.35
Net
realized
and
unrealized
gains
(losses)
1.78
(0.68)
2.48
(1.92)
3.27
(2.64)
Total
from
investment
operations
........
2.01
(0.24)
2.93
(1.39)
3.70
(2.29)
Less
distributions
from:
Net
investment
income
..............
—
(0.61)
(0.67)
(0.39)
(0.48)
(0.63)
Net
asset
value,
end
of
period
..........
$21.91
$19.90
$20.75
$18.49
$20.27
$17.05
Total
return
d
.......................
10.10%
(1.03)%
15.96%
(6.76)%
21.70%
(11.54)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.50%
h
1.49%
h
1.58%
h
1.58%
h
1.54%
1.54%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
—%
—%
—%
—%
i
Net
investment
income
...............
2.17%
2.23%
2.21%
3.19%
c
2.27%
1.88%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$748
$623
$639
$714
$733
$731
Portfolio
turnover
rate
................
44.61%
32.10%
32.03%
24.04%
12.16%
35.42%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.48%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
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Mutual
International
Value
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
61
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$21.05
$21.88
$19.47
$21.29
$17.87
$20.91
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.36
0.62
0.60
0.64
c
0.69
0.56
Net
realized
and
unrealized
gains
(losses)
1.81
(0.73)
2.60
(1.97)
3.33
(2.85)
Total
from
investment
operations
........
2.17
(0.11)
3.20
(1.33)
4.02
(2.29)
Less
distributions
from:
Net
investment
income
..............
—
(0.72)
(0.79)
(0.49)
(0.60)
(0.75)
Net
asset
value,
end
of
period
..........
$23.22
$21.05
$21.88
$19.47
$21.29
$17.87
Total
return
d
.......................
10.31%
(0.38)%
16.56%
(6.10)%
22.35%
(10.94)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
f
..........................
0.96%
0.92%
1.02%
1.00%
0.94%
0.92%
Expenses
net
of
waiver
and
payments
by
affiliates
f,g
.........................
0.94%
0.91%
0.99%
0.97%
0.93%
0.91%
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
—%
—%
—%
—%
—%
h
Net
investment
income
...............
3.21%
2.96%
2.78%
3.61%
c
2.88%
2.51%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$34,577
$33,306
$35,798
$33,407
$44,561
$149,796
Portfolio
turnover
rate
................
44.61%
32.10%
32.03%
24.04%
12.16%
35.42%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.30
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.91%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited),
June
30,
2023
Franklin
Mutual
International
Value
Fund
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notes
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integral
part
of
these
financial
statements.
62
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
97.3%
Aerospace
&
Defense
4.4%
Airbus
SE
...........................................
France
97,358
$
14,077,479
a
Babcock
International
Group
plc
..........................
United
Kingdom
1,954,742
7,021,672
Melrose
Industries
plc
..................................
United
Kingdom
1,955,093
12,596,842
33,695,993
Automobile
Components
4.4%
Cie
Generale
des
Etablissements
Michelin
SCA
..............
France
243,674
7,208,862
Denso
Corp.
.........................................
Japan
396,758
26,765,884
33,974,746
Banks
11.5%
BNP
Paribas
SA
......................................
France
389,540
24,584,546
DBS
Group
Holdings
Ltd.
...............................
Singapore
1,077,262
25,157,995
ING
Groep
NV
.......................................
Netherlands
1,403,840
18,927,740
UniCredit
SpA
........................................
Italy
868,955
20,208,162
88,878,443
Beverages
3.5%
Anheuser-Busch
InBev
SA/NV
...........................
Belgium
150,279
8,518,210
Coca-Cola
HBC
AG
...................................
Italy
308,817
9,211,972
Heineken
NV
........................................
Netherlands
91,165
9,375,959
27,106,141
Capital
Markets
1.8%
Deutsche
Bank
AG
....................................
Germany
1,352,155
14,216,196
Chemicals
2.9%
a,b
Covestro
AG,
144A,
Reg
S
..............................
Germany
425,416
22,137,566
Consumer
Staples
Distribution
&
Retail
2.5%
Seven
&
i
Holdings
Co.
Ltd.
..............................
Japan
445,957
19,268,977
Diversified
Telecommunication
Services
6.7%
Deutsche
Telekom
AG
..................................
Germany
825,506
18,012,966
Koninklijke
KPN
NV
...................................
Netherlands
4,214,244
15,046,123
Nippon
Telegraph
&
Telephone
Corp.
......................
Japan
15,913,200
18,832,800
51,891,889
Electrical
Equipment
1.2%
Mitsubishi
Electric
Corp.
................................
Japan
634,720
8,974,183
Electronic
Equipment,
Instruments
&
Components
2.3%
Murata
Manufacturing
Co.
Ltd.
...........................
Japan
312,140
17,932,096
Food
Products
1.4%
Danone
SA
..........................................
France
181,335
11,113,852
Health
Care
Equipment
&
Supplies
2.0%
Olympus
Corp.
.......................................
Japan
988,851
15,651,087
Health
Care
Providers
&
Services
2.2%
Fresenius
SE
&
Co.
KGaA
...............................
Germany
609,816
16,915,874
Household
Durables
2.4%
Sony
Group
Corp.
.....................................
Japan
206,426
18,636,702
Household
Products
0.9%
Reckitt
Benckiser
Group
plc
.............................
United
Kingdom
96,491
7,251,382
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
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Mutual
International
Value
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statements.
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a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Independent
Power
and
Renewable
Electricity
Producers
1.8%
RWE
AG
............................................
Germany
325,105
$
14,168,174
Industrial
Conglomerates
2.1%
Siemens
AG
.........................................
Germany
96,281
16,051,596
Insurance
5.1%
ASR
Nederland
NV
....................................
Netherlands
392,973
17,726,080
NN
Group
NV
........................................
Netherlands
573,475
21,230,649
38,956,729
Interactive
Media
&
Services
1.5%
c
Tencent
Holdings
Ltd.
..................................
China
265,981
11,277,692
IT
Services
2.1%
Capgemini
SE
........................................
France
83,546
15,820,262
Machinery
2.8%
Alstom
SA
...........................................
France
570,966
17,045,332
Vossloh
AG
..........................................
Germany
100,408
4,495,209
21,540,541
Metals
&
Mining
3.0%
Rio
Tinto
plc
.........................................
Australia
366,146
23,268,470
Oil,
Gas
&
Consumable
Fuels
8.2%
BP
plc
..............................................
United
Kingdom
3,948,943
22,992,238
Shell
plc
............................................
Netherlands
925,036
27,595,384
Suncor
Energy,
Inc.
....................................
Canada
418,867
12,287,440
62,875,062
Personal
Care
Products
1.6%
Haleon
plc
..........................................
United
States
3,062,711
12,570,804
Pharmaceuticals
4.9%
GSK
plc
............................................
United
States
981,079
17,387,233
Novartis
AG
.........................................
Switzerland
199,008
20,064,996
37,452,229
Semiconductors
&
Semiconductor
Equipment
2.1%
a
Renesas
Electronics
Corp.
..............................
Japan
864,798
16,323,002
Software
2.0%
a
Check
Point
Software
Technologies
Ltd.
....................
Israel
122,973
15,447,868
Technology
Hardware,
Storage
&
Peripherals
3.3%
Samsung
Electronics
Co.
Ltd.
............................
South
Korea
468,276
25,786,379
Textiles,
Apparel
&
Luxury
Goods
2.8%
adidas
AG
...........................................
Germany
53,547
10,395,927
Cie
Financiere
Richemont
SA
............................
Switzerland
67,337
11,439,041
21,834,968
Tobacco
1.8%
British
American
Tobacco
plc
.............................
United
Kingdom
405,933
13,487,305
Trading
Companies
&
Distributors
2.1%
a
AerCap
Holdings
NV
...................................
Ireland
252,808
16,058,364
Total
Common
Stocks
(Cost
$664,564,693)
.....................................
750,564,572
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
International
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64
Short
Term
Investments
3.9%
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
3.9%
d
FHLB,
7/03/23
.......................................
United
States
26,900,000
$
26,900,000
d
U.S.
Treasury
Bills
,
7/13/23
...........................................
United
States
1,500,000
1,497,916
7/20/23
...........................................
United
States
1,500,000
1,496,457
2,994,373
Total
U.S.
Government
and
Agency
Securities
(Cost
$29,886,850)
.................
29,894,373
Total
Short
Term
Investments
(Cost
$29,886,850
)
................................
29,894,373
a
Total
Investments
(Cost
$694,451,543)
101.2%
..................................
$780,458,945
Other
Assets,
less
Liabilities
(1.2)%
...........................................
(9,110,406)
Net
Assets
100.0%
...........................................................
$771,348,539
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2023,
the
value
of
this
security
was
$22,137,566,
representing
2.9%
of
net
assets.
c
Variable
interest
entity
(VIE).
d
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
Franklin
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Mutual
International
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At
June
3
0
,
202
3
,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
1
(
d
). 
See
Note 
11
 regarding
other
derivative
information.
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Equity
contracts
MSCI
EAFE
Index
............................
Long
18
$
1,939,950
9/15/23
$
(8,677)
Total
Futures
Contracts
......................................................................
$(8,677)
*
As
of
period
end.
See
A
bbreviations
on
page
131
.
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66
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
Z
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.96
$14.46
$13.31
$14.06
$12.95
$15.83
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.29
0.50
0.23
0.40
c
0.45
0.48
Net
realized
and
unrealized
gains
(losses)
(0.16)
(1.51)
1.29
(0.66)
1.16
(1.58)
Total
from
investment
operations
........
0.13
(1.01)
1.52
(0.26)
1.61
(1.10)
Less
distributions
from:
Net
investment
income
..............
—
(0.49)
(0.37)
(0.49)
(0.50)
(0.58)
Net
realized
gains
.................
—
—
—
—
—
(1.20)
Total
distributions
...................
—
(0.49)
(0.37)
(0.49)
(0.50)
(1.78)
Net
asset
value,
end
of
period
..........
$13.09
$12.96
$14.46
$13.31
$14.06
$12.95
Total
return
d
.......................
0.93
%
(6.86)%
11.51%
(1.83)%
12.40%
(6.85)%
Ratios
to
average
net
assets
e
Expenses
f,g
........................
0.83%
h
0.78%
h
0.87%
h
0.81%
h
0.78%
0.78%
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
0.06%
0.02%
0.06%
0.02%
0.02%
—%
i
Net
investment
income
...............
4.44%
3.60%
1.59%
3.22%
c
3.22%
2.96%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,981,681
$2,047,788
$2,397,948
$2,472,118
$3,042,387
$3,054,792
Portfolio
turnover
rate
................
52.84%
101.19%
66.95%
52.07%
60.96%
115.52%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.11
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.32%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
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a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.74
$14.22
$13.09
$13.84
$12.75
$15.60
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.27
0.46
0.19
0.37
c
0.41
0.43
Net
realized
and
unrealized
gains
(losses)
(0.16)
(1.48)
1.28
(0.67)
1.14
(1.54)
Total
from
investment
operations
........
0.11
(1.02)
1.47
(0.30)
1.55
(1.11)
Less
distributions
from:
Net
investment
income
..............
—
(0.46)
(0.34)
(0.45)
(0.46)
(0.54)
Net
realized
gains
.................
—
—
—
—
—
(1.20)
Total
distributions
...................
—
(0.46)
(0.34)
(0.45)
(0.46)
(1.74)
Net
asset
value,
end
of
period
..........
$12.85
$12.74
$14.22
$13.09
$13.84
$12.75
Total
return
d
.......................
0.86%
(7.16)%
11.26%
(2.12)%
12.14%
(7.00)%
Ratios
to
average
net
assets
e
Expenses
f,g
........................
1.08%
h
1.03%
h
1.12%
h
1.06%
h
1.03%
1.03%
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
0.06%
0.02%
0.06%
0.02%
0.02%
—%
i
Net
investment
income
...............
4.18%
3.35%
1.34%
2.98%
c
2.97%
2.71%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$581,321
$617,190
$723,791
$760,173
$1,035,699
$1,067,382
Portfolio
turnover
rate
................
52.84%
101.19%
66.95%
52.07%
60.96%
115.52%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.11
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.08%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Quest
Fund
(continued)
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Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
68
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.71
$14.17
$13.01
$13.73
$12.64
$15.35
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.22
0.35
0.08
0.27
c
0.30
0.29
Net
realized
and
unrealized
gains
(losses)
(0.16)
(1.47)
1.27
(0.66)
1.12
(1.49)
Total
from
investment
operations
........
0.06
(1.12)
1.35
(0.39)
1.42
(1.20)
Less
distributions
from:
Net
investment
income
..............
—
(0.34)
(0.19)
(0.33)
(0.33)
(0.31)
Net
realized
gains
.................
—
—
—
—
—
(1.20)
Total
distributions
...................
—
(0.34)
(0.19)
(0.33)
(0.33)
(1.51)
Net
asset
value,
end
of
period
..........
$12.77
$12.71
$14.17
$13.01
$13.73
$12.64
Total
return
d
.......................
0.47%
(7.88)%
10.42%
(2.83)%
11.26%
(7.77)%
Ratios
to
average
net
assets
e
Expenses
f,g
........................
1.83%
h
1.78%
h
1.87%
h
1.81%
h
1.78%
1.78%
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
0.06%
0.02%
0.06%
0.02%
0.02%
—%
i
Net
investment
income
...............
3.42%
2.57%
0.55%
2.24%
c
2.22%
1.96%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$28,669
$33,039
$44,228
$65,715
$112,751
$141,619
Portfolio
turnover
rate
................
52.84%
101.19%
66.95%
52.07%
60.96%
115.52%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.11
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.34%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
69
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.52
$13.98
$12.87
$13.61
$12.54
$15.40
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.25
0.45
0.15
0.33
c
0.37
0.39
Net
realized
and
unrealized
gains
(losses)
(0.16)
(1.49)
1.27
(0.66)
1.12
(1.53)
Total
from
investment
operations
........
0.09
(1.04)
1.42
(0.33)
1.49
(1.14)
Less
distributions
from:
Net
investment
income
..............
—
(0.42)
(0.31)
(0.41)
(0.42)
(0.52)
Net
realized
gains
.................
—
—
—
—
—
(1.20)
Total
distributions
...................
—
(0.42)
(0.31)
(0.41)
(0.42)
(1.72)
Net
asset
value,
end
of
period
..........
$12.61
$12.52
$13.98
$12.87
$13.61
$12.54
Total
return
d
.......................
0.72%
(7.44)%
11.05%
(2.38)%
11.88%
(7.31)%
Ratios
to
average
net
assets
e
Expenses
f,g
........................
1.33%
h
1.27%
h
1.37%
h
1.31%
h
1.28%
1.28%
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
0.06%
0.02%
0.06%
0.02%
0.02%
—%
i
Net
investment
income
...............
3.92%
3.39%
1.10%
2.72%
c
2.72%
2.46%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,711
$3,725
$2,643
$2,495
$3,415
$2,929
Portfolio
turnover
rate
................
52.84%
101.19%
66.95%
52.07%
60.96%
115.52%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.11
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.82%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
70
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.95
$14.45
$13.29
$14.05
$12.94
$15.81
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.29
0.51
0.23
0.41
c
0.46
0.49
Net
realized
and
unrealized
gains
(losses)
(0.17)
(1.51)
1.31
(0.68)
1.15
(1.57)
Total
from
investment
operations
........
0.12
(1.00)
1.54
(0.27)
1.61
(1.08)
Less
distributions
from:
Net
investment
income
..............
—
(0.50)
(0.38)
(0.49)
(0.50)
(0.59)
Net
realized
gains
.................
—
—
—
—
—
(1.20)
Total
distributions
...................
—
(0.50)
(0.38)
(0.49)
(0.50)
(1.79)
Net
asset
value,
end
of
period
..........
$13.07
$12.95
$14.45
$13.29
$14.05
$12.94
Total
return
d
.......................
1.00%
(6.88)%
11.67%
(1.79)%
12.40%
(6.73)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
f
..........................
0.82%
0.76%
0.87%
0.79%
0.74%
0.74%
Expenses
net
of
waiver
and
payments
by
affiliates
f,g
.........................
0.78%
0.72%
0.82%
0.75%
0.72%
0.72%
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
0.06%
0.02%
0.06%
0.02%
0.02%
—%
h
Net
investment
income
...............
4.48%
3.65%
1.63%
3.28%
c
3.28%
3.02%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$29,814
$32,109
$39,292
$47,970
$107,723
$116,012
Portfolio
turnover
rate
................
52.84%
101.19%
66.95%
52.07%
60.96%
115.52%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.11
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.38%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Rounds
to
less
than
0.01%.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited),
June
30,
2023
Franklin
Mutual
Quest
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
71
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
68.9%
Air
Freight
&
Logistics
1.1%
United
Parcel
Service,
Inc.,
B
............................
United
States
158,041
$
28,328,849
Automobile
Components
1.1%
Denso
Corp.
.........................................
Japan
418,804
28,253,140
a,b,c
International
Automotive
Components
Group
Brazil
LLC
........
Brazil
2,548,299
81,270
28,334,410
Automobiles
1.1%
d
General
Motors
Co.
....................................
United
States
760,562
29,327,271
Banks
2.6%
PNC
Financial
Services
Group,
Inc.
(The)
...................
United
States
234,574
29,544,595
e
Wells
Fargo
&
Co.
.....................................
United
States
904,468
38,602,694
68,147,289
Beverages
1.0%
Heineken
NV
........................................
Netherlands
260,097
26,749,945
Biotechnology
2.6%
b,d
Horizon
Therapeutics
plc
................................
United
States
661,275
68,012,134
Broadline
Retail
0.5%
eBay,
Inc.
...........................................
United
States
290,949
13,002,511
Chemicals
2.4%
Avient
Corp.
.........................................
United
States
731,744
29,928,330
b,f
Covestro
AG,
144A,
Reg
S
..............................
Germany
662,378
34,468,465
64,396,795
Communications
Equipment
0.7%
a,b,c,g
Inclusive
Language
Services
LLC,
Membership
Interests,
B
......
United
States
106,532
17,315,589
a,b,c,g
Sorenson
Communications
LLC,
Membership
Interests
.........
United
States
224,279
—
17,315,589
Containers
&
Packaging
1.2%
International
Paper
Co.
.................................
United
States
952,289
30,292,313
Diversified
Telecommunication
Services
1.7%
Deutsche
Telekom
AG
..................................
Germany
1,303,571
28,444,592
a,b,c
Windstream
Holdings,
Inc.
...............................
United
States
1,714,983
15,443,468
43,888,060
Electric
Utilities
2.0%
Entergy
Corp.
........................................
United
States
441,518
42,990,608
PPL
Corp.
...........................................
United
States
343,707
9,094,487
52,085,095
Energy
Equipment
&
Services
2.2%
Baker
Hughes
Co.,
A
...................................
United
States
944,102
29,843,064
Schlumberger
NV
.....................................
United
States
583,010
28,637,451
58,480,515
Entertainment
3.7%
b,d
Activision
Blizzard,
Inc.
.................................
United
States
746,180
62,902,974
b,e
Walt
Disney
Co.
(The)
..................................
United
States
389,942
34,814,022
97,716,996
Financial
Services
3.6%
b,e
Fiserv,
Inc.
..........................................
United
States
186,682
23,549,934
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Financial
Services
(continued)
Global
Payments,
Inc.
..................................
United
States
416,795
$
41,062,643
e
Voya
Financial,
Inc.
....................................
United
States
401,677
28,804,258
93,416,835
Food
Products
0.5%
Danone
SA
..........................................
France
211,242
12,946,824
Health
Care
Equipment
&
Supplies
0.2%
Medtronic
plc
........................................
United
States
71,738
6,320,118
Health
Care
Providers
&
Services
6.4%
CVS
Health
Corp.
.....................................
United
States
696,972
48,181,674
Elevance
Health,
Inc.
..................................
United
States
146,694
65,174,677
Fresenius
SE
&
Co.
KGaA
...............................
Germany
549,025
15,229,573
Humana,
Inc.
........................................
United
States
86,526
38,688,371
167,274,295
Household
Products
0.9%
Reckitt
Benckiser
Group
plc
.............................
United
Kingdom
326,234
24,516,767
Independent
Power
and
Renewable
Electricity
Producers
0.3%
AES
Corp.
(The)
......................................
United
States
438,349
9,086,975
Insurance
8.5%
ASR
Nederland
NV
....................................
Netherlands
686,214
30,953,486
China
Pacific
Insurance
Group
Co.
Ltd.,
H
...................
China
11,827,500
30,705,526
Conduit
Holdings
Ltd.
..................................
United
States
3,154,832
18,470,595
Everest
Re
Group
Ltd.
.................................
United
States
136,277
46,587,655
Hartford
Financial
Services
Group,
Inc.
(The)
................
United
States
396,456
28,552,761
NN
Group
NV
........................................
Netherlands
1,076,665
39,859,273
Willis
Towers
Watson
plc
................................
United
States
114,849
27,046,940
222,176,236
Media
3.3%
b,e
Charter
Communications,
Inc.,
A
..........................
United
States
157,556
57,881,348
b
Clear
Channel
Outdoor
Holdings,
Inc.
......................
United
States
2,811,402
3,851,621
Comcast
Corp.,
A
.....................................
United
States
605,481
25,157,735
a,b,c
Tenerity
,
Inc.
.........................................
United
States
1
48
86,890,752
Metals
&
Mining
1.1%
Rio
Tinto
plc
.........................................
Australia
465,044
29,553,409
Office
REITs
0.4%
Vornado
Realty
Trust
...................................
United
States
530,447
9,622,309
Oil,
Gas
&
Consumable
Fuels
5.0%
BP
plc
..............................................
United
Kingdom
5,837,989
33,990,978
EOG
Resources,
Inc.
..................................
United
States
152,867
17,494,100
Shell
plc
............................................
Netherlands
441,770
13,178,744
Suncor
Energy,
Inc.
....................................
Canada
914,653
26,831,294
e
Williams
Cos.,
Inc.
(The)
................................
United
States
1,235,551
40,316,029
131,811,145
Passenger
Airlines
0.3%
Spirit
Airlines,
Inc.
.....................................
United
States
523,349
8,980,669
Personal
Care
Products
0.6%
Haleon
plc
..........................................
United
States
3,759,255
15,429,748
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
73
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Pharmaceuticals
4.6%
b,h
Bausch
Health
Cos.,
Inc.
................................
United
States
710,720
$
5,685,760
d,e
Eli
Lilly
&
Co.
........................................
United
States
58,594
27,479,414
GSK
plc
............................................
United
States
1,437,033
25,467,906
Merck
&
Co.,
Inc.
.....................................
United
States
233,399
26,931,911
Novartis
AG,
ADR
.....................................
Switzerland
356,884
36,013,164
121,578,155
Professional
Services
1.4%
SS&C
Technologies
Holdings,
Inc.
.........................
United
States
616,394
37,353,476
Real
Estate
Management
&
Development
0.7%
b
CBRE
Group,
Inc.,
A
...................................
United
States
28,790
2,323,641
b
Cushman
&
Wakefield
plc
...............................
United
States
424,488
3,472,312
Savills
plc
...........................................
United
Kingdom
1,155,329
12,487,530
18,283,483
Semiconductors
&
Semiconductor
Equipment
0.5%
b
Tower
Semiconductor
Ltd.
...............................
Israel
333,880
12,527,178
Software
3.1%
b
ACI
Worldwide,
Inc.
....................................
United
States
1,381,694
32,013,850
b
Check
Point
Software
Technologies
Ltd.
....................
Israel
396,346
49,788,984
81,802,834
Specialized
REITs
0.6%
Uniti
Group,
Inc.
......................................
United
States
3,241,488
14,975,675
Specialty
Retail
0.0%
a,b,c,g
Wayne
Services
Legacy,
Inc.
.............................
United
States
7,104
—
Tobacco
2.9%
British
American
Tobacco
plc
.............................
United
Kingdom
2,283,083
75,856,449
Wireless
Telecommunication
Services
0.1%
b
Intelsat
SA
..........................................
Luxembourg
106,029
2,401,557
Total
Common
Stocks
(Cost
$1,727,518,430)
....................................
1,808,882,661
Rights
Rights
0.0%
†
Diversified
Telecommunication
Services
0.0%
†
b
Intelsat
Jackson
Holdings
SA,
B,
12/05/25
...................
Luxembourg
128,313
652,279
Total
Rights
(Cost
$–)
........................................................
652,279
Warrants
Warrants
0.1%
Media
0.0%
†
a,b,c
Tenerity
,
Inc.,
4/10/24
..................................
United
States
48,380
798,156
Wireless
Telecommunication
Services
0.1%
b
Intelsat
Emergence
SA,
2/17/27
..........................
Luxembourg
323,376
841,242
841,242
Total
Warrants
(Cost
$8,327,945)
..............................................
1,639,398
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Convertible
Bonds
0.3%
Media
0.3%
DISH
Network
Corp.
,
Senior
Note
,
2.375
%
,
3/15/24
............
United
States
8,000,000
$
7,120,000
Total
Convertible
Bonds
(Cost
$7,137,283)
.....................................
7,120,000
Corporate
Bonds
10.6%
Diversified
REITs
0.3%
f
Uniti
Group
LP
/
Uniti
Group
Finance,
Inc.
/
CSL
Capital
LLC
,
Senior
Secured
Note
,
144A,
10.5
%
,
2/15/28
.....................
United
States
7,000,000
6,950,746
Diversified
Telecommunication
Services
0.5%
Frontier
Communications
Holdings
LLC
,
Secured
Note
,
5.875
%
,
11/01/29
..........................................
United
States
13,464,222
9,842,481
f
Windstream
Escrow
LLC
/
Windstream
Escrow
Finance
Corp.
,
Senior
Secured
Note
,
144A,
7.75
%
,
8/15/28
................
United
States
4,363,000
3,625,569
13,468,050
Health
Care
Providers
&
Services
0.0%
†
f,i
Envision
Healthcare
Corp.
,
Senior
Note
,
144A,
8.75
%
,
10/15/26
..
United
States
10,000,000
163,850
Media
1.9%
f
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
31,000,000
24,373,130
Senior
Note,
144A,
7.5%,
6/01/29
.......................
United
States
19,000,000
14,081,495
DISH
DBS
Corp.
,
Senior
Note
,
5.875
%
,
11/15/24
..............
United
States
8,000,000
7,007,052
f
DISH
Network
Corp.
,
Senior
Secured
Note
,
144A,
11.75
%
,
11/15/27
United
States
6,101,000
5,960,928
51,422,605
Passenger
Airlines
1.1%
f
American
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
11.75
%
,
7/15/25
United
States
25,340,000
27,808,826
Pharmaceuticals
2.0%
f
Bausch
Health
Americas,
Inc.
,
Senior
Note,
144A,
9.25%,
4/01/26
......................
United
States
20,459,000
17,259,315
Senior
Note,
144A,
8.5%,
1/31/27
.......................
United
States
25,481,000
13,981,679
f
Bausch
Health
Cos.,
Inc.
,
Senior
Bond,
144A,
7.25%,
5/30/29
......................
United
States
45,000,000
19,178,550
Senior
Note,
144A,
9%,
12/15/25
.......................
United
States
2,107,000
1,840,538
52,260,082
Software
2.5%
f
Veritas
US,
Inc.
/
Veritas
Bermuda
Ltd.
,
Senior
Secured
Note
,
144A,
7.5
%
,
9/01/25
......................................
United
States
80,772,000
65,654,365
Specialty
Retail
2.3%
f
Staples,
Inc.
,
Senior
Note,
144A,
10.75%,
4/15/27
.....................
United
States
85,226,000
49,630,596
Senior
Secured
Note,
144A,
7.5%,
4/15/26
................
United
States
12,868,000
10,645,284
60,275,880
Total
Corporate
Bonds
(Cost
$352,545,790)
.....................................
278,004,404
j
Senior
Floating
Rate
Interests
8.4%
Commercial
Services
&
Supplies
1.0%
k,l
Neptune
BidCo
US,
Inc.
,
First
Lien,
CME
Term
Loan,
A
,
9.754
%
,
(
3-month
SOFR
+
4.75
%
),
10/11/28
......................
United
States
28,712,350
24,997,690
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
75
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
j
Senior
Floating
Rate
Interests
(continued)
Communications
Equipment
4.1%
a,c,g,m
Sorenson
Communications
LLC
,
Term
Loan,
A,
PIK,
10%,
4/01/30
........................
United
States
25,335,818
$
23,856,504
Term
Loan,
B,
PIK,
8%,
4/01/30
.........................
United
States
104,434,858
83,760,314
107,616,818
a
a
a
a
a
a
Health
Care
Providers
&
Services
0.4%
l
Covetrus
Midco
2
LP
,
First
Lien,
Initial
CME
Term
Loan
,
10.242
%
,
(
3-month
SOFR
+
5
%
),
10/13/29
........................
United
States
12,221,333
11,411,670
Media
0.1%
i,l
Loyalty
Ventures,
Inc.
,
Term
Loan,
B
,
11.5
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
11/03/27
.....................................
United
States
27,715,757
3,436,754
Pharmaceuticals
1.4%
k,l
Bausch
Health
Cos.,
Inc.
,
Second
Amendment
CME
Term
Loan
,
10.426
%
,
(
1-month
SOFR
+
5.25
%
),
2/01/27
...............
United
States
49,350,649
37,422,597
l
Software
1.4%
Quest
Software
US
Holdings,
Inc.
,
Second
Lien,
Initial
CME
Term
Loan
,
12.695
%
,
(
3-month
SOFR
+
7.5
%
),
2/01/30
...........
United
States
46,841,437
31,383,763
Veritas
US,
Inc.
,
2021
Dollar
Term
Loan,
B
,
10.217
%
,
(
1-month
SOFR
+
5
%
),
9/01/25
.................................
United
States
7,347,338
6,025,956
37,409,719
a
a
a
a
a
a
Total
Senior
Floating
Rate
Interests
(Cost
$279,117,972)
.........................
222,295,248
Shares
a
Companies
in
Liquidation
0.0%
a,b,n
Bosgen
Liquidating
Trust
c/o
Verdolino
and
Lowey
P.C.,
Contingent
Distribution
........................................
Netherlands
159,828
—
a,b,n
Walter
Energy,
Inc.,
Litigation
Trust,
Contingent
Distribution
......
United
States
7,443,000
—
Total
Companies
in
Liquidation
(Cost
$–)
......................................
—
Total
Long
Term
Investments
(Cost
$2,374,647,420)
.............................
2,318,593,990
a
Number
of
Contracts
Notional
Amount
#
a
a
aa
Options
Purchased
0.0%
†
Calls
-
Exchange-Traded
Equity
Options
Humana,
Inc.,
August
Strike
Price
$465.00,
Expires
8/18/23
.....
100
4,471,300
84,000
Puts
-
Exchange-Traded
Carvana
Co.,
January
Strike
Price
$2.50,
Expires
1/19/24
.......
3,000
7,776,000
48,000
Total
Options
Purchased
(Cost
$407,158)
......................................
132,000
Short
Term
Investments
13.7%
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
13.7%
o
FHLB,
7/03/23
.......................................
United
States
325,300,000
325,300,000
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
Short
Term
Investments
(continued)
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
(continued)
o
U.S.
Treasury
Bills
,
8/22/23
...........................................
United
States
10,000,000
$
9,928,333
11/09/23
..........................................
United
States
10,000,000
9,814,324
e
11/16/23
..........................................
United
States
5,000,000
4,902,250
12/14/23
..........................................
United
States
10,000,000
9,762,276
34,407,183
Total
U.S.
Government
and
Agency
Securities
(Cost
$359,630,850)
................
359,707,183
Shares
p
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.0%
†
Money
Market
Funds
0.0%
†
q,r
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.699%
....
United
States
100,000
100,000
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$100,000)
.............................................................
100,000
Total
Short
Term
Investments
(Cost
$359,730,850
)
...............................
359,807,183
a
Total
Investments
(Cost
$2,734,785,428)
102.0%
................................
$2,678,533,173
Options
Written
(0.2)%
.......................................................
(4,421,750)
Securities
Sold
Short
(3.4)%
..................................................
(89,677,600)
Other
Assets,
less
Liabilities
1.6%
.............................................
39,762,066
Net
Assets
100.0%
...........................................................
$2,624,195,889
Number
of
Contracts
Notional
Amount
#
s
Options
Written
(0.2)%
Calls
-
Exchange-Traded
Equity
Options
Activision
Blizzard,
Inc.,
July
Strike
Price
$82.50,
Expires
7/21/23
.
3,000
25,290,000
(1,440,000)
Activision
Blizzard,
Inc.,
August
Strike
Price
$85.00,
Expires
8/18/23
2,000
16,860,000
(880,000)
Eli
Lilly
&
Co.,
July
Strike
Price
$400.00,
Expires
7/21/23
........
150
7,034,700
(1,044,750)
General
Motors
Co.,
July
Strike
Price
$36.00,
Expires
7/21/23
....
2,000
7,712,000
(576,000)
Horizon
Therapeutics
plc,
August
Strike
Price
$105.00,
Expires
8/18/23
...........................................
1,000
10,285,000
(250,000)
(4,190,750)
Puts
-
Exchange-Traded
Equity
Options
Humana,
Inc.,
August
Strike
Price
$430.00,
Expires
8/18/23
.....
300
13,413,900
(231,000)
(231,000)
Total
Options
Written
(Premiums
received
$2,518,115)
...........................
$
(4,421,750)
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
77
a
a
a
Country
Shares
a
Value
a
a
a
a
a
a
t
Securities
Sold
Short
(3.4)%
Common
Stocks
(3.4)%
Health
Care
Equipment
&
Supplies
(0.1)%
Bausch
+
Lomb
Corp.
..................................
United
States
172,546
(3,462,998)
Passenger
Airlines
(1.9)%
American
Airlines
Group,
Inc.
............................
United
States
2,851,276
(51,151,892)
Specialized
REITs
(0.9)%
Digital
Realty
Trust,
Inc.
................................
United
States
202,232
(23,028,158)
Specialty
Retail
(0.5)%
Carvana
Co.,
A
.......................................
United
States
464,296
(12,034,552)
Total
Common
Stocks
(Proceeds
$78,588,919)
..................................
(89,677,600)
Total
Securities
Sold
Short
(Proceeds
$78,588,919)
..............................
$(89,677,600)
#
Notional
amount
is
the
number
of
contracts
multiplied
by
contract
size,
and
may
be
multiplied
by
the
underlying
price.
May
include
currency
units,
bushels,
shares,
pounds,
barrels
or
other
units.
Currency
units
are
stated
in
U.S.
dollars
unless
otherwise
indicated.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
14
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
10
regarding
restricted
securities.
d
A
portion
or
all
of
the
security
is
held
in
connection
with
written
option
contracts
open
at
period
end.
e
A
portion
or
all
of
the
security
has
been
segregated
as
collateral
for
securities
sold
short,
open
forward
exchange
contracts
and
open
written
options
contracts.
At
June
30,
2023,
the
aggregate
value
of
these
securities
pledged
amounted
to
$153,692,061,
representing
5.9%
of
net
assets.
f
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2023,
the
aggregate
value
of
these
securities
was
$295,623,336,
representing
11.3%
of
net
assets.
g
See
Note
12
regarding
holdings
of
5%
voting
securities.
h
A
portion
or
all
of
the
security
is
on
loan
at
June
30,
2023.
See
Note
1(g).
i
See
Note
8
regarding
credit
risk
and
defaulted
securities.
j
See
Note
1(h)
regarding
senior
floating
rate
interests.
k
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
l
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
m
Income
may
be
received
in
additional
securities
and/or
cash.
n
Contingent
distributions
represent
the
right
to
receive
additional
distributions,
if
any,
during
the
reorganization
of
the
underlying
company.
Shares
represent
total
underlying
principal
of
debt
securities.
o
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
p
See
Note
1(g)
regarding
securities
on
loan.
q
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
r
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
s
See
Note
1(d)
regarding
written
options.
t
See
Note
1(f)
regarding
securities
sold
short.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Quest
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
At
June
30,
2023,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
1(d).
At
June
3
0
,
202
3
,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1
(
d
). 
See
Note 
11
 regarding
other
derivative
information.
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Foreign
exchange
contracts
Foreign
Exchange
EUR/USD
...................
Short
143
$
19,578,488
9/18/23
$
(257,952)
Foreign
Exchange
GBP/USD
...................
Short
249
19,762,819
9/18/23
(162,465)
Total
Futures
Contracts
......................................................................
$(420,417)
*
As
of
period
end.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
Euro
.............
BOFA
Buy
4,432,061
4,859,113
7/11/23
$
—
$
(20,841)
Euro
.............
BOFA
Sell
11,466,961
12,587,318
7/11/23
99,740
(30,364)
Euro
.............
HSBK
Buy
2,674,024
2,946,614
7/11/23
—
(27,508)
Euro
.............
UBSW
Buy
280,000
306,602
7/11/23
—
(939)
Euro
.............
UBSW
Sell
13,571,364
14,872,605
7/11/23
95,704
(38,319)
British
Pound
......
BOFA
Buy
521,255
657,005
7/17/23
5,042
—
British
Pound
......
UBSW
Sell
29,362,723
36,927,215
7/17/23
31,671
(398,108)
Total
Forward
Exchange
Contracts
...................................................
$232,157
$(516,079)
Net
unrealized
appreciation
(depreciation)
............................................
$(283,922)
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
See
Abbreviations
on
page
131
.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Shares
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
79
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
Z
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$22.86
$27.09
$25.33
$27.56
$24.25
$28.63
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.23
0.43
0.39
0.83
c
0.63
0.51
Net
realized
and
unrealized
gains
(losses)
1.02
(2.45)
4.43
(2.11)
4.90
(3.11)
Total
from
investment
operations
........
1.25
(2.02)
4.82
(1.28)
5.53
(2.60)
Less
distributions
from:
Net
investment
income
..............
—
(0.37)
(0.94)
(0.53)
(0.71)
(0.53)
Net
realized
gains
.................
—
(1.84)
(2.12)
(0.42)
(1.51)
(1.25)
Total
distributions
...................
—
(2.21)
(3.06)
(0.95)
(2.22)
(1.78)
Net
asset
value,
end
of
period
..........
$24.11
$22.86
$27.09
$25.33
$27.56
$24.25
Total
return
d
.......................
5.47%
(7.11)%
19.34%
(4.34)%
23.13%
(8.95)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
0.75%
0.75%
0.81%
h
0.80%
h
0.78%
h
0.76%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
i
—%
i
0.02%
0.02%
0.02%
—%
i
Net
investment
income
...............
1.95%
1.70%
1.36%
3.56%
c
2.32%
1.77%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$3,826,041
$3,785,598
$4,717,528
$4,376,135
$5,472,276
$5,189,476
Portfolio
turnover
rate
................
17.04%
59.69%
41.18%
j
21.35%
21.71%
20.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.30%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
j
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Mutual
Series
Funds
Financial
Highlights
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Mutual
Shares
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$22.54
$26.75
$25.04
$27.26
$24.00
$28.35
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.20
0.36
0.31
0.76
c
0.56
0.43
Net
realized
and
unrealized
gains
(losses)
1.00
(2.42)
4.39
(2.10)
4.85
(3.07)
Total
from
investment
operations
........
1.20
(2.06)
4.70
(1.34)
5.41
(2.64)
Less
distributions
from:
Net
investment
income
..............
—
(0.31)
(0.87)
(0.46)
(0.64)
(0.46)
Net
realized
gains
.................
—
(1.84)
(2.12)
(0.42)
(1.51)
(1.25)
Total
distributions
...................
—
(2.15)
(2.99)
(0.88)
(2.15)
(1.71)
Net
asset
value,
end
of
period
..........
$23.74
$22.54
$26.75
$25.04
$27.26
$24.00
Total
return
d
.......................
5.32%
(7.35)%
19.07%
(4.60)%
22.86%
(9.18)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.00%
1.00%
1.06%
h
1.05%
h
1.03%
h
1.01%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
i
—%
i
0.02%
0.02%
0.02%
—%
i
Net
investment
income
...............
1.70%
1.45%
1.11%
3.32%
c
2.07%
1.52%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,589,682
$2,601,790
$3,125,320
$2,965,127
$4,042,626
$3,852,134
Portfolio
turnover
rate
................
17.04%
59.69%
41.18%
j
21.35%
21.71%
20.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.07%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
j
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
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Mutual
Series
Funds
Financial
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Mutual
Shares
Fund
(continued)
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accompanying
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are
an
integral
part
of
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financial
statements.
Semiannual
Report
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a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$22.55
$26.75
$25.02
$27.22
$23.97
$28.04
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.11
0.17
0.10
0.60
c
0.36
0.21
Net
realized
and
unrealized
gains
(losses)
1.00
(2.41)
4.37
(2.12)
4.82
(3.00)
Total
from
investment
operations
........
1.11
(2.24)
4.47
(1.52)
5.18
(2.79)
Less
distributions
from:
Net
investment
income
..............
—
(0.12)
(0.62)
(0.26)
(0.42)
(0.03)
Net
realized
gains
.................
—
(1.84)
(2.12)
(0.42)
(1.51)
(1.25)
Total
distributions
...................
—
(1.96)
(2.74)
(0.68)
(1.93)
(1.28)
Net
asset
value,
end
of
period
..........
$23.66
$22.55
$26.75
$25.02
$27.22
$23.97
Total
return
d
.......................
4.92%
(8.04)%
18.13%
(5.29)%
21.93%
(9.87)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.75%
1.75%
1.81%
h
1.80%
h
1.78%
h
1.76%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
i
—%
i
0.02%
0.02%
0.02%
—%
i
Net
investment
income
...............
0.95%
0.69%
0.35%
2.63%
c
1.32%
0.77%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$155,657
$158,150
$192,660
$206,196
$302,296
$309,756
Portfolio
turnover
rate
................
17.04%
59.69%
41.18%
j
21.35%
21.71%
20.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.37%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
j
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
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Mutual
Series
Funds
Financial
Highlights
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Mutual
Shares
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$22.45
$26.65
$24.96
$27.17
$23.91
$28.21
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.17
0.29
0.24
0.70
c
0.49
0.36
Net
realized
and
unrealized
gains
(losses)
1.00
(2.40)
4.36
(2.09)
4.83
(3.05)
Total
from
investment
operations
........
1.17
(2.11)
4.60
(1.39)
5.32
(2.69)
Less
distributions
from:
Net
investment
income
..............
—
(0.25)
(0.79)
(0.40)
(0.55)
(0.36)
Net
realized
gains
.................
—
(1.84)
(2.12)
(0.42)
(1.51)
(1.25)
Total
distributions
...................
—
(2.09)
(2.91)
(0.82)
(2.06)
(1.61)
Net
asset
value,
end
of
period
..........
$23.62
$22.45
$26.65
$24.96
$27.17
$23.91
Total
return
d
.......................
5.21%
(7.60)%
18.75%
(4.80)%
22.55%
(9.41)%
Ratios
to
average
net
assets
e
Expenses
f
,g
........................
1.25%
1.25%
1.31%
h
1.30%
h
1.28%
h
1.26%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
i
—%
i
0.02%
0.02%
0.02%
—%
i
Net
investment
income
...............
1.45%
1.19%
0.86%
3.06%
c
1.82%
1.27%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$39,418
$38,759
$49,843
$48,216
$66,038
$74,345
Portfolio
turnover
rate
................
17.04%
59.69%
41.18%
j
21.35%
21.71%
20.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.80%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
j
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Mutual
Series
Funds
Financial
Highlights
Franklin
Mutual
Shares
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
83
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$22.84
$27.07
$25.32
$27.55
$24.23
$28.61
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.23
0.44
0.39
0.83
c
0.64
0.53
Net
realized
and
unrealized
gains
(losses)
1.02
(2.44)
4.43
(2.09)
4.92
(3.11)
Total
from
investment
operations
........
1.25
(2.00)
4.82
(1.26)
5.56
(2.58)
Less
distributions
from:
Net
investment
income
..............
—
(0.39)
(0.95)
(0.55)
(0.73)
(0.55)
Net
realized
gains
.................
—
(1.84)
(2.12)
(0.42)
(1.51)
(1.25)
Total
distributions
...................
—
(2.23)
(3.07)
(0.97)
(2.24)
(1.80)
Net
asset
value,
end
of
period
..........
$24.09
$22.84
$27.07
$25.32
$27.55
$24.23
Total
return
d
.......................
5.47%
(7.05)%
19.37%
(4.27)%
23.26%
(8.88)%
Ratios
to
average
net
assets
e
Expenses
f,g
........................
0.71%
0.68%
0.74%
h
0.72%
h
0.70%
h
0.69%
h
Expenses
-
incurred
in
connection
with
securities
sold
short
.................
—%
i
—%
i
0.02%
0.02%
0.02%
—%
i
Net
investment
income
...............
2.00%
1.76%
1.40%
3.57%
c
2.40%
1.84%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$289,593
$286,332
$372,115
$1,449,696
$1,680,600
$3,160,186
Portfolio
turnover
rate
................
17.04%
59.69%
41.18%
j
21.35%
21.71%
20.72%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.29
per
share
related
to
income
received
in
the
form
of
special
dividends
and
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.31%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Includes
dividends
and/or
interest
expense
on
securities
sold
short
and
security
borrowing
fees,
if
any.
See
below
for
the
ratios
of
such
expenses
to
average
net
assets
for
the
periods
presented.
See
Note
1(f).
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Rounds
to
less
than
0.01%.
j
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited),
June
30,
2023
Franklin
Mutual
Shares
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
84
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
91.4%
Air
Freight
&
Logistics
1.5%
United
Parcel
Service,
Inc.,
B
............................
United
States
571,110
$
102,371,468
Automobile
Components
0.0%
†
a,b,c,d
International
Automotive
Components
Group
Brazil
LLC
........
Brazil
7,234,813
230,733
Automobiles
2.0%
General
Motors
Co.
....................................
United
States
3,557,202
137,165,709
Banks
5.0%
Bank
of
America
Corp.
.................................
United
States
4,916,834
141,063,967
JPMorgan
Chase
&
Co.
.................................
United
States
1,417,449
206,153,783
347,217,750
Biotechnology
0.8%
b
Horizon
Therapeutics
plc
................................
United
States
552,751
56,850,440
Building
Products
2.0%
Johnson
Controls
International
plc
.........................
United
States
2,071,866
141,176,949
Capital
Markets
1.7%
BlackRock,
Inc.
.......................................
United
States
171,554
118,567,832
Consumer
Finance
2.2%
Bread
Financial
Holdings,
Inc.
............................
United
States
665,990
20,905,426
Capital
One
Financial
Corp.
.............................
United
States
1,176,988
128,727,178
149,632,604
Containers
&
Packaging
1.6%
International
Paper
Co.
.................................
United
States
3,492,896
111,109,022
Diversified
Telecommunication
Services
0.3%
a,b,c
Windstream
Holdings,
Inc.
...............................
United
States
2,243,497
20,202,751
Electronic
Equipment,
Instruments
&
Components
2.3%
b
Flex
Ltd.
............................................
United
States
5,653,521
156,263,320
Energy
Equipment
&
Services
2.3%
Schlumberger
NV
.....................................
United
States
3,289,690
161,589,573
Entertainment
4.1%
b
Activision
Blizzard,
Inc.
.................................
United
States
1,777,337
149,829,509
b
Walt
Disney
Co.
(The)
..................................
United
States
1,466,278
130,909,300
280,738,809
Financial
Services
6.5%
b
Fiserv,
Inc.
..........................................
United
States
1,528,322
192,797,820
Global
Payments,
Inc.
..................................
United
States
1,315,433
129,596,459
Voya
Financial,
Inc.
....................................
United
States
1,802,571
129,262,367
451,656,646
Food
Products
2.2%
Kraft
Heinz
Co.
(The)
..................................
United
States
4,276,007
151,798,249
Health
Care
Equipment
&
Supplies
2.2%
Medtronic
plc
........................................
United
States
1,730,730
152,477,313
Health
Care
Providers
&
Services
5.4%
CVS
Health
Corp.
.....................................
United
States
2,109,344
145,818,951
Elevance
Health,
Inc.
..................................
United
States
271,296
120,534,100
Humana,
Inc.
........................................
United
States
233,632
104,463,876
370,816,927
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Shares
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
85
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Household
Durables
1.9%
DR
Horton,
Inc.
.......................................
United
States
1,062,722
$
129,322,640
Insurance
3.4%
Everest
Re
Group
Ltd.
.................................
United
States
349,351
119,429,133
Willis
Towers
Watson
plc
................................
United
States
506,203
119,210,806
238,639,939
Interactive
Media
&
Services
3.0%
b
Match
Group,
Inc.
.....................................
United
States
866,828
36,276,752
b
Meta
Platforms,
Inc.,
A
.................................
United
States
598,294
171,698,412
207,975,164
Machinery
2.2%
Parker-Hannifin
Corp.
..................................
United
States
383,932
149,748,837
Media
3.9%
b
Charter
Communications,
Inc.,
A
..........................
United
States
377,249
138,589,965
Comcast
Corp.,
A
.....................................
United
States
3,231,399
134,264,629
272,854,594
Metals
&
Mining
1.1%
Alcoa
Corp.
..........................................
United
States
2,162,225
73,364,294
Oil,
Gas
&
Consumable
Fuels
5.9%
BP
plc
..............................................
United
Kingdom
21,182,711
123,333,748
Chevron
Corp.
.......................................
United
States
903,156
142,111,596
Williams
Cos.,
Inc.
(The)
................................
United
States
4,455,406
145,379,898
410,825,242
Personal
Care
Products
0.8%
b
Kenvue,
Inc.
.........................................
United
States
2,021,618
53,411,148
Pharmaceuticals
7.7%
Eli
Lilly
&
Co.
........................................
United
States
221,482
103,870,628
GSK
plc
............................................
United
States
7,016,560
124,351,419
Merck
&
Co.,
Inc.
.....................................
United
States
1,240,936
143,191,605
Novartis
AG,
ADR
.....................................
Switzerland
1,558,716
157,290,032
528,703,684
Professional
Services
3.7%
KBR,
Inc.
...........................................
United
States
1,965,650
127,885,189
SS&C
Technologies
Holdings,
Inc.
.........................
United
States
2,098,415
127,163,949
255,049,138
Real
Estate
Management
&
Development
2.5%
b
CBRE
Group,
Inc.,
A
...................................
United
States
2,111,230
170,397,373
Retail
REITs
2.2%
Brixmor
Property
Group,
Inc.
.............................
United
States
6,802,750
149,660,500
Software
3.4%
Gen
Digital,
Inc.
......................................
United
States
5,515,762
102,317,385
Oracle
Corp.
.........................................
United
States
1,122,259
133,649,824
235,967,209
Specialty
Retail
0.0%
a,b,c,d
Wayne
Services
Legacy,
Inc.
.............................
United
States
7,469
—
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Shares
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
86
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Textiles,
Apparel
&
Luxury
Goods
2.3%
Tapestry,
Inc.
........................................
United
States
3,666,798
$
156,938,954
Tobacco
2.0%
British
American
Tobacco
plc
.............................
United
Kingdom
4,117,617
136,809,659
Trading
Companies
&
Distributors
1.5%
Ferguson
plc
.........................................
United
States
658,754
103,628,592
Wireless
Telecommunication
Services
1.8%
b
T-Mobile
US,
Inc.
.....................................
United
States
903,386
125,480,315
Total
Common
Stocks
(Cost
$4,924,370,127)
....................................
6,308,643,377
Principal
Amount
*
Corporate
Bonds
2.0%
Hotels,
Restaurants
&
Leisure
0.2%
e
Carnival
Holdings
Bermuda
Ltd.
,
Senior
Note
,
144A,
10.375
%
,
5/01/28
...........................................
United
States
9,230,300
10,104,166
Pharmaceuticals
0.1%
e
Bausch
Health
Americas,
Inc.
,
Senior
Note
,
144A,
8.5
%
,
1/31/27
..
United
States
12,778,000
7,011,416
e
Bausch
Health
Cos.,
Inc.
,
Senior
Note
,
144A,
9
%
,
12/15/25
......
United
States
1,057,000
923,327
7,934,743
Software
1.0%
e
Veritas
US,
Inc.
/
Veritas
Bermuda
Ltd.
,
Senior
Secured
Note
,
144A,
7.5
%
,
9/01/25
......................................
United
States
86,667,000
70,446,032
Specialty
Retail
0.7%
e
Staples,
Inc.
,
Senior
Note,
144A,
10.75%,
4/15/27
.....................
United
States
53,102,000
30,923,473
Senior
Secured
Note,
144A,
7.5%,
4/15/26
................
United
States
20,102,000
16,629,741
47,553,214
Total
Corporate
Bonds
(Cost
$168,590,019)
.....................................
136,038,155
f
Senior
Floating
Rate
Interests
2.1%
Commercial
Services
&
Supplies
0.5%
g,h
Neptune
BidCo
US,
Inc.
,
First
Lien,
CME
Term
Loan,
A
,
9.754
%
,
(
3-month
SOFR
+
4.75
%
),
10/11/28
......................
United
States
38,283,150
33,330,267
Professional
Services
0.4%
g,h
CoreLogic,
Inc.
,
First
Lien,
Initial
Term
Loan
,
8.75
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
6/02/28
...............................
United
States
27,731,269
25,103,731
h
Software
1.2%
Banff
Guarantor,
Inc.
,
Second
Lien,
Initial
Term
Loan
,
10.717
%
,
(
1-month
SOFR
+
5.5
%
),
2/27/26
........................
United
States
20,487,800
20,026,825
Quest
Software
US
Holdings,
Inc.
,
Second
Lien,
Initial
CME
Term
Loan
,
12.695
%
,
(
3-month
SOFR
+
7.5
%
),
2/01/30
...........
United
States
40,126,436
26,884,712
Veritas
US,
Inc.
,
2021
Dollar
Term
Loan,
B
,
10.217
%
,
(
1-month
SOFR
+
5
%
),
9/01/25
.................................
United
States
47,212,064
38,721,210
85,632,747
a
a
a
a
a
a
Total
Senior
Floating
Rate
Interests
(Cost
$165,052,089)
.........................
144,066,745
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Shares
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
87
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Companies
in
Liquidation
0.0%
a,b,i
Bosgen
Liquidating
Trust
c/o
Verdolino
and
Lowey
P.C.,
Contingent
Distribution
........................................
Netherlands
555,154
$
—
a,b,i
Walter
Energy,
Inc.,
Litigation
Trust,
Contingent
Distribution
......
United
States
20,046,000
—
Total
Companies
in
Liquidation
(Cost
$–)
......................................
—
Total
Long
Term
Investments
(Cost
$5,258,012,235)
.............................
6,588,748,277
a
Short
Term
Investments
5.1%
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
5.1%
j
FHLB,
7/03/23
.......................................
United
States
345,000,000
345,000,000
j,k
U.S.
Treasury
Bills,
12/14/23
.............................
United
States
5,000,000
4,881,138
Total
U.S.
Government
and
Agency
Securities
(Cost
$349,790,186)
................
349,881,138
Total
Short
Term
Investments
(Cost
$349,790,186
)
...............................
349,881,138
a
Total
Investments
(Cost
$5,607,802,421)
100.6%
................................
$6,938,629,415
Other
Assets,
less
Liabilities
(0.6)%
...........................................
(38,238,940)
Net
Assets
100.0%
...........................................................
$6,900,390,475
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
14
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
10
regarding
restricted
securities.
d
See
Note
12
regarding
holdings
of
5%
voting
securities.
e
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2023,
the
aggregate
value
of
these
securities
was
$136,038,155,
representing
2.0%
of
net
assets.
f
See
Note
1(h)
regarding
senior
floating
rate
interests.
g
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
h
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
i
Contingent
distributions
represent
the
right
to
receive
additional
distributions,
if
any,
during
the
reorganization
of
the
underlying
company.
Shares
represent
total
underlying
principal
of
debt
securities.
j
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
k
A
portion
or
all
of
the
security
has
been
segregated
as
collateral
for
open
forward
exchange
contracts.
At
June
30,
2023,
the
value
of
this
security
pledged
amounted
to
$203,055,
representing
less
than
0.1%
of
net
assets.
Franklin
Mutual
Series
Funds
Schedule
of
Investments
(unaudited)
Franklin
Mutual
Shares
Fund
(continued)
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Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
At
June
30,
2023,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
1(d).
At
June
3
0
,
202
3
,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1
(
d
). 
See
Note 
11
 regarding
other
derivative
information.
See
Abbreviations
on
page
131
.
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Foreign
exchange
contracts
Foreign
Exchange
GBP/USD
...................
Short
326
$
25,874,212
9/18/23
$
(212,705)
Total
Futures
Contracts
......................................................................
$(212,705)
*
As
of
period
end.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
British
Pound
......
BOFA
Buy
783,696
987,794
7/17/23
$
7,580
$
—
British
Pound
......
BOFA
Sell
2,500,000
3,118,750
7/17/23
—
(56,505)
British
Pound
......
HSBK
Buy
301,714
374,453
7/17/23
8,755
—
British
Pound
......
HSBK
Sell
508,206
634,003
7/17/23
—
(11,470)
British
Pound
......
UBSW
Buy
1,116,458
1,399,048
7/17/23
18,968
—
British
Pound
......
UBSW
Sell
21,251,725
26,665,122
7/17/23
—
(326,737)
Total
Forward
Exchange
Contracts
...................................................
$35,303
$(394,712)
Net
unrealized
appreciation
(depreciation)
............................................
$(359,409)
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
June
30,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
89
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$2,401,948,764
$294,925,462
$7,182,686,645
Cost
-
Non-controlled
affiliates
(Note
3
f
and
12
)
.................
—
2,226,755
—
Value
-
Unaffiliated
issuers
................................
$3,025,866,906
$330,434,049
$8,985,228,544
Value
-
Non-controlled
affiliates
(Note
3
f
and
12
)
................
—
118,307
—
Cash
..................................................
144,498
104,732
353,936
Restricted
cash
for
OTC
derivative
contracts
(Note
1
e
)
.............
—
—
830,000
Foreign
currency,
at
value
(cost
$–,
$780,118
and
$7,713,329,
respectively)
............................................
—
782,253
7,744,554
Receivables:
Investment
securities
sold
.................................
25,966,580
—
—
Capital
shares
sold
......................................
612,104
361,547
1,882,824
Dividends
and
interest
...................................
6,512,650
645,725
18,704,919
European
Union
tax
reclaims
(Note
1
i
)
.......................
4,482,924
113,956
1,895,648
Deposits
with
brokers
for:
Futures
contracts
......................................
—
296,070
5,665,880
Unrealized
appreciation
on
OTC
forward
exchange
contracts
........
—
274,994
14,805,961
Total
assets
........................................
3,063,585,662
333,131,633
9,037,112,266
Liabilities:
Payables:
Investment
securities
purchased
............................
61,722,633
—
58,365,965
Capital
shares
redeemed
.................................
1,178,195
229,672
5,540,889
Management
fees
.......................................
1,631,273
236,120
6,078,201
Distribution
fees
........................................
180,149
54,473
1,224,054
Transfer
agent
fees
......................................
449,811
57,455
1,897,171
Trustees'
fees
and
expenses
...............................
71,534
5,761
458,317
IRS
closing
agreement
payments
for
European
Union
tax
reclaims
(Note
1
i
)
..............................................
—
320,011
10,377,597
Variation
margin
on
futures
contracts
.........................
—
61,638
1,189,031
Deposits
from
brokers
for:
OTC
derivative
contracts
................................
—
—
830,000
Unrealized
depreciation
on
OTC
forward
exchange
contracts
........
—
131,497
563,696
Accrued
expenses
and
other
liabilities
.........................
263,471
100,662
951,798
Total
liabilities
.......................................
65,497,066
1,197,289
87,476,719
Net
assets,
at
value
...............................
$2,998,088,596
$331,934,344
$8,949,635,547
Net
assets
consist
of:
Paid-in
capital
...........................................
$2,379,749,788
$351,979,505
$6,856,382,091
Total
distributable
earnings
(losses)
...........................
618,338,808
(20,045,161)
2,093,253,456
Net
assets,
at
value
...............................
$2,998,088,596
$331,934,344
$8,949,635,547
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
June
30,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Class
Z:
Net
assets,
at
value
.....................................
$2,069,092,922
$105,759,835
$3,039,487,113
Shares
outstanding
......................................
133,858,427
4,596,187
100,703,405
Net
asset
value
and
maximum
offering
price
per
share
...........
$15.46
$23.01
$30.18
Class
A:
Net
assets,
at
value
.....................................
$819,488,872
$209,144,681
$5,033,345,149
Shares
outstanding
......................................
53,760,222
9,069,887
171,658,026
Net
asset
value
per
share
a
................................
$15.24
$23.06
$29.32
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
..............................................
$16.13
$24.40
$31.03
Class
C:
Net
assets,
at
value
.....................................
$17,746,354
$14,590,381
$197,800,582
Shares
outstanding
......................................
1,158,041
638,137
6,731,652
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$15.32
$22.86
$29.38
Class
R:
Net
assets,
at
value
.....................................
$1,193,546
$—
$113,848,752
Shares
outstanding
......................................
79,646
—
3,953,607
Net
asset
value
and
maximum
offering
price
per
share
...........
$14.99
$—
$28.80
Class
R6:
Net
assets,
at
value
.....................................
$90,566,902
$2,439,447
$565,153,951
Shares
outstanding
......................................
5,859,394
105,245
18,729,903
Net
asset
value
and
maximum
offering
price
per
share
...........
$15.46
$23.18
$30.17
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
June
30,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
91
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$694,451,543
$2,605,819,612
$5,602,997,743
Cost
-
Non-controlled
affiliates
(Note
3
f
and
12
)
.................
—
128,965,816
4,804,678
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$—,
$104,000
and
$—,
respectively)
............................
$780,458,945
$2,553,500,766
$6,938,398,682
Value
-
Non-controlled
affiliates
(Note
3
f
and
12
)
................
—
125,032,407
230,733
Cash
..................................................
20,402
1,346,054
802,896
Foreign
currency,
at
value
(cost
$1,330,741,
$3,247,530
and
$–,
respectively)
............................................
1,334,580
3,250,076
—
Receivables:
Investment
securities
sold
.................................
10,889,393
27,564,723
11,540,038
Capital
shares
sold
......................................
19,767
222,081
908,313
Dividends
and
interest
...................................
3,015,406
15,388,828
14,566,190
European
Union
tax
reclaims
(Note
1
i
)
.......................
3,156,319
294,429
663,736
Deposits
with
brokers
for:
Securities
sold
short
...................................
—
89,451,638
—
Futures
contracts
......................................
61,184
970,870
861,750
Variation
margin
on
futures
contracts
.........................
21,804
—
—
Due
from
custodian
......................................
—
4,000
—
Unrealized
appreciation
on
OTC
forward
exchange
contracts
........
—
232,157
35,303
Total
assets
........................................
798,977,800
2,817,258,029
6,968,007,641
Liabilities:
Payables:
Investment
securities
purchased
............................
19,691,372
93,850,101
55,753,680
Capital
shares
redeemed
.................................
1,015,336
1,948,250
4,845,364
Management
fees
.......................................
488,471
1,439,792
3,708,541
Distribution
fees
........................................
65,631
142,804
663,207
Transfer
agent
fees
......................................
138,604
332,273
1,057,654
Trustees'
fees
and
expenses
...............................
79,223
127,850
456,041
IRS
closing
agreement
payments
for
European
Union
tax
reclaims
(Note
1
i
)
..............................................
5,965,205
—
—
Variation
margin
on
futures
contracts
.........................
—
203,581
167,075
Securities
sold
short,
at
value
(proceeds
$–,
$78,588,919
and
$–
,
respectively
)
............................................
—
89,677,600
—
Options
written,
at
value
(premiums
received
$–,
$2,518,115
and
$–,
respectively)
............................................
—
4,421,750
—
Unrealized
depreciation
on
OTC
forward
exchange
contracts
........
—
516,079
394,712
Payable
upon
return
of
securities
loaned
(Note
1
g
)
................
—
104,000
—
Accrued
expenses
and
other
liabilities
.........................
185,419
298,060
570,892
Total
liabilities
.......................................
27,629,261
193,062,140
67,617,166
Net
assets,
at
value
...............................
$771,348,539
$2,624,195,889
$6,900,390,475
Net
assets
consist
of:
Paid-in
capital
...........................................
$789,966,094
$3,206,336,210
$5,489,663,232
Total
distributable
earnings
(losses)
...........................
(18,617,555)
(582,140,321)
1,410,727,243
Net
assets,
at
value
...............................
$771,348,539
$2,624,195,889
$6,900,390,475
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
June
30,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Class
Z:
Net
assets,
at
value
.....................................
$446,998,832
$1,981,681,448
$3,826,040,822
Shares
outstanding
......................................
19,227,851
151,419,790
158,704,612
Net
asset
value
and
maximum
offering
price
per
share
...........
$23.25
$13.09
$24.11
Class
A:
Net
assets,
at
value
.....................................
$278,113,848
$581,321,220
$2,589,681,953
Shares
outstanding
......................................
12,369,491
45,247,276
109,096,688
Net
asset
value
per
share
a
................................
$22.48
$12.85
$23.74
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
..............................................
$23.79
$13.60
$25.12
Class
C:
Net
assets,
at
value
.....................................
$10,910,944
$28,668,840
$155,657,089
Shares
outstanding
......................................
477,493
2,244,964
6,577,654
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$22.85
$12.77
$23.66
Class
R:
Net
assets,
at
value
.....................................
$747,880
$2,710,675
$39,417,695
Shares
outstanding
......................................
34,142
214,946
1,669,038
Net
asset
value
and
maximum
offering
price
per
share
...........
$21.91
$12.61
$23.62
Class
R6:
Net
assets,
at
value
.....................................
$34,577,035
$29,813,706
$289,592,916
Shares
outstanding
......................................
1,488,811
2,280,408
12,019,557
Net
asset
value
and
maximum
offering
price
per
share
...........
$23.22
$13.07
$24.09
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
June
30,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
93
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$1,214,840,
$424,838
and
$7,830,653,
respectively)
Unaffiliated
issuers
......................................
$46,239,818
$6,671,379
$132,430,534
Non-controlled
affiliates
(Note
3
f
and
12
)
......................
—
288
—
Interest:
Unaffiliated
issuers
......................................
1,976,442
402,071
7,980,927
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
—
(349)
—
Non-controlled
affiliates
(Note
3
f
)
...........................
—
420
—
Other
income
(Note
1
i
)
.....................................
2,558,208
3,843
64,137
Less:
IRS
closing
agreement
payments
for
European
Union
tax
reclaims
(Note
1
i
)
...............................................
—
(3,765)
(212,868)
Total
investment
income
.................................
50,774,468
7,073,887
140,262,730
Expenses:
Management
fees
(Note
3
a
)
.................................
10,029,335
1,528,343
36,718,020
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
1,017,685
276,419
6,133,148
    Class
C
..............................................
91,202
82,832
1,055,641
    Class
R
..............................................
3,288
—
280,152
Transfer
agent
fees:
(Note
3e
)
    Class
Z
..............................................
781,877
58,506
1,566,730
    Class
A
..............................................
310,987
118,327
2,600,316
    Class
C
..............................................
6,966
8,883
111,995
    Class
R
..............................................
502
—
59,392
    Class
R6
.............................................
15,891
1,502
74,197
Custodian
fees
(Note
4
)
....................................
31,002
4,485
145,852
Reports
to
shareholders
fees
................................
76,278
26,129
462,857
Registration
and
filing
fees
..................................
61,835
32,555
177,279
Professional
fees
.........................................
63,863
57,392
79,770
Trustees'
fees
and
expenses
................................
7,009
4,641
4,915
Dividends
on
securities
sold
short
............................
—
—
112,200
Other
..................................................
67,970
20,994
173,854
Total
expenses
.......................................
12,565,690
2,221,008
49,756,318
Expense
reductions
(Note
4
)
.............................
(37,663)
(6,641)
(156,116)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(6,786)
(1,194)
—
Net
expenses
.......................................
12,521,241
2,213,173
49,600,202
Net
investment
income
..............................
38,253,227
4,860,714
90,662,528
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
June
30,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(71,835,748)
(31,196,088)
199,510,539
Foreign
currency
transactions
..............................
358,286
39,615
(332,817)
Forward
exchange
contracts
...............................
—
(2,241,851)
(8,797,338)
Futures
contracts
.......................................
—
(156,141)
(2,625,186)
Securities
sold
short
.....................................
—
—
1,135,336
Net
realized
gain
(loss)
................................
(71,477,462)
(33,554,465)
188,890,534
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
250,055,680
15,949,235
595,925,768
Non-controlled
affiliates
(Note
3
f
and
12
)
....................
—
(18,484)
—
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
154,903
18,275
(35,946)
Forward
exchange
contracts
...............................
—
1,641,086
33,970,935
Futures
contracts
.......................................
—
(111,214)
(668,161)
Net
change
in
unrealized
appreciation
(depreciation)
..........
250,210,583
17,478,898
629,192,596
Net
realized
and
unrealized
gain
(loss)
..........................
178,733,121
(16,075,567)
818,083,130
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$216,986,348
$(11,214,853)
$908,745,658
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
June
30,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
95
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$1,334,114,
$1,130,429
and
$1,022,441,
respectively)
Unaffiliated
issuers
......................................
$14,925,722
$22,705,291
$66,177,699
Interest:
Unaffiliated
issuers:
Paid
in
cash
..........................................
676,349
38,243,284
26,521,045
Non-controlled
affiliates
(Note
12)
:
Payment-in-kind
.......................................
—
9,707,793
—
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
1,644
1,343
—
Non-controlled
affiliates
(Note
3
f
)
...........................
—
8,613
—
Other
income
(Note
1
i
)
.....................................
31,733
3,140
6,081
Total
investment
income
.................................
15,635,448
70,669,464
92,704,825
Expenses:
Management
fees
(Note
3
a
)
.................................
3,194,327
9,067,185
22,828,972
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
334,705
753,291
3,228,939
    Class
C
..............................................
66,785
154,943
785,868
    Class
R
..............................................
2,135
6,917
96,628
Transfer
agent
fees:
(Note
3e
)
    Class
Z
..............................................
200,451
668,546
1,300,838
    Class
A
..............................................
123,210
199,573
888,488
    Class
C
..............................................
6,193
10,261
54,072
    Class
R
..............................................
398
916
13,291
    Class
R6
.............................................
5,739
8,526
31,235
Custodian
fees
(Note
4
)
....................................
25,366
19,770
25,104
Reports
to
shareholders
fees
................................
46,425
87,792
214,273
Registration
and
filing
fees
..................................
80,971
66,650
141,161
Professional
fees
.........................................
63,897
68,211
77,628
Trustees'
fees
and
expenses
................................
6,379
3,839
648
Dividends
and
interest
on
securities
sold
short
...................
—
855,545
90,360
Other
..................................................
50,365
61,596
120,182
Total
expenses
.......................................
4,207,346
12,033,561
29,897,687
Expense
reductions
(Note
4
)
.............................
(23,278)
(25,285)
(36,417)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(20,534)
(6,037)
—
Net
expenses
.......................................
4,163,534
12,002,239
29,861,270
Net
investment
income
..............................
11,471,914
58,667,225
62,843,555
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
June
30,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(10,403,891)
(283,298,303)
(96,656,596)
Written
options
.........................................
—
1,607,726
—
Foreign
currency
transactions
..............................
(272,415)
515,956
138,360
Forward
exchange
contracts
...............................
(5,443,911)
(3,447,201)
(5,485,193)
Futures
contracts
.......................................
(3,678,651)
(624,345)
(597,425)
Securities
sold
short
.....................................
—
6,136,881
914,358
Net
realized
gain
(loss)
................................
(19,798,868)
(279,109,286)
(101,686,496)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
78,737,494
245,842,214
396,989,559
Non-controlled
affiliates
(Note
3
f
and
12
)
....................
—
9,042,960
(23,918)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
132,545
6,568
73,794
Written
options
.........................................
—
(1,619,335)
—
Forward
exchange
contracts
...............................
1,788,975
1,714,881
3,738,410
Futures
contracts
.......................................
881,722
(523,015)
(599,362)
Securities
sold
short
.....................................
—
(8,505,328)
—
Net
change
in
unrealized
appreciation
(depreciation)
..........
81,540,736
245,958,945
400,178,483
Net
realized
and
unrealized
gain
(loss)
..........................
61,741,868
(33,150,341)
298,491,987
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$73,213,782
$25,516,884
$361,335,542
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
97
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$38,253,227
$53,049,195
$4,860,714
$8,930,086
Net
realized
gain
(loss)
............
(71,477,462)
196,576,867
(33,554,465)
27,683,862
Net
change
in
unrealized
appreciation
(depreciation)
.................
250,210,583
(682,590,820)
17,478,898
(60,365,040)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
216,986,348
(432,964,758)
(11,214,853)
(23,751,092)
Distributions
to
shareholders:
Class
Z
........................
—
(190,112,808)
—
(2,688,217)
Class
A
........................
—
(74,167,735)
—
(4,824,183)
Class
C
........................
—
(1,592,139)
—
(212,982)
Class
R
........................
—
(120,118)
—
—
Class
R6
.......................
—
(9,621,951)
—
(50,005)
Total
distributions
to
shareholders
.....
—
(275,614,751)
—
(7,775,387)
Capital
share
transactions:
(Note
2
)
Class
Z
........................
(90,886,036)
(15,446,542)
(5,372,120)
(4,430,932)
Class
A
........................
(36,991,576)
2,759,223
(14,536,652)
(8,336,278)
Class
C
........................
(2,348,057)
(3,987,241)
(3,073,710)
(5,252,310)
Class
R
........................
(231,201)
230,991
—
—
Class
R6
.......................
(19,123,910)
(20,790,639)
357,893
(732,681)
Total
capital
share
transactions
.......
(149,580,780)
(37,234,208)
(22,624,589)
(18,752,201)
Net
increase
(decrease)
in
net
assets
.....................
67,405,568
(745,813,717)
(33,839,442)
(50,278,680)
Net
assets:
Beginning
of
period
................
2,930,683,028
3,676,496,745
365,773,786
416,052,466
End
of
period
.....................
$2,998,088,596
$2,930,683,028
$331,934,344
$365,773,786
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
Franklin
Mutual
Global
Discovery
Fund
Franklin
Mutual
International
Value
Fund
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$90,662,528
$164,656,225
$11,471,914
$20,302,434
Net
realized
gain
(loss)
............
188,890,534
506,317,803
(19,798,868)
73,058,121
Net
change
in
unrealized
appreciation
(depreciation)
.................
629,192,596
(1,168,768,275)
81,540,736
(106,285,616)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
908,745,658
(497,794,247)
73,213,782
(12,925,061)
Distributions
to
shareholders:
Class
Z
........................
—
(281,878,228)
—
(13,475,013)
Class
A
........................
—
(468,308,648)
—
(7,954,672)
Class
C
........................
—
(20,215,814)
—
(329,499)
Class
R
........................
—
(10,672,271)
—
(16,953)
Class
R6
.......................
—
(51,982,564)
—
(1,108,946)
Total
distributions
to
shareholders
.....
—
(833,057,525)
—
(22,885,083)
Capital
share
transactions:
(Note
2
)
Class
Z
........................
(127,024,256)
(52,974,974)
(9,661,798)
(21,426,384)
Class
A
........................
(224,094,154)
(120,252,374)
(3,903,271)
(14,180,394)
Class
C
........................
(45,029,471)
(75,739,833)
(5,554,623)
(8,053,154)
Class
R
........................
(7,493,297)
(9,685,704)
11,544
6,556
Class
R6
.......................
(18,875,536)
(46,371,609)
(2,190,068)
(1,105,043)
Total
capital
share
transactions
.......
(422,516,714)
(305,024,494)
(21,298,216)
(44,758,419)
Net
increase
(decrease)
in
net
assets
.....................
486,228,944
(1,635,876,266)
51,915,566
(80,568,563)
Net
assets:
Beginning
of
period
................
8,463,406,603
10,099,282,869
719,432,973
800,001,536
End
of
period
.....................
$8,949,635,547
$8,463,406,603
$771,348,539
$719,432,973
Franklin
Mutual
Series
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
99
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$58,667,225
$105,469,872
$62,843,555
$118,842,776
Net
realized
gain
(loss)
............
(279,109,286)
348,426,533
(101,686,496)
503,364,261
Net
change
in
unrealized
appreciation
(depreciation)
.................
245,958,945
(674,931,243)
400,178,483
(1,245,489,698)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
25,516,884
(221,034,838)
361,335,542
(623,282,661)
Distributions
to
shareholders:
Class
Z
........................
—
(75,629,406)
—
(351,898,805)
Class
A
........................
—
(21,616,265)
—
(237,824,169)
Class
C
........................
—
(870,932)
—
(12,939,673)
Class
R
........................
—
(121,099)
—
(3,434,282)
Class
R6
.......................
—
(1,210,033)
—
(26,928,459)
Total
distributions
to
shareholders
.....
—
(99,447,735)
—
(633,025,388)
Capital
share
transactions:
(Note
2
)
Class
Z
........................
(85,941,067)
(110,831,935)
(161,307,954)
(231,177,795)
Class
A
........................
(41,010,901)
(34,031,376)
(146,526,353)
(56,625,234)
Class
C
........................
(4,550,657)
(7,073,962)
(10,073,374)
(6,041,214)
Class
R
........................
(1,052,509)
1,714,206
(1,331,577)
(3,864,289)
Class
R6
.......................
(2,616,621)
(3,345,837)
(12,335,543)
(32,819,611)
Total
capital
share
transactions
.......
(135,171,755)
(153,568,904)
(331,574,801)
(330,528,143)
Net
increase
(decrease)
in
net
assets
.....................
(109,654,871)
(474,051,477)
29,760,741
(1,586,836,192)
Net
assets:
Beginning
of
period
................
2,733,850,760
3,207,902,237
6,870,629,734
8,457,465,926
End
of
period
.....................
$2,624,195,889
$2,733,850,760
$6,900,390,475
$6,870,629,734
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
100
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Mutual
Series
Funds (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of
six
separate
funds
(Funds).
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standard
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Class
Z,
Class
A,
Class
C,
Class
R,
&
Class
R6
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Global
Discovery
Fund
Franklin
Mutual
International
Value
Fund
a
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Class
Z,
Class
A,
Class
C,
&
Class
R6
Franklin
Mutual
Financial
Services
Fund
a
Effective
May
1,
2023,
Franklin
Mutual
European
Fund
was
renamed
Franklin
Mutual
International
Value
Fund.
The
following
summarizes
the Funds'
significant
accounting
policies. 
a.
Financial
Instrument
Valuation 
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
derivative
financial
instruments
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
OTC
market rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
101
franklintempleton.com
Semiannual
Report
Certain
derivative
financial
instruments
trade
in
the
OTC
market.
The
Funds' pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Funds' net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds'
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
June
30,
2023,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
within
the
fair
value
hierarchy
(referred
to
as
“market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
102
franklintempleton.com
Semiannual
Report
c.
Securities
Purchased
on
a
Delayed
Delivery
Basis
Certain
or
all
Funds
purchase
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Funds
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
d.
Derivative
Financial
Instruments
Certain
or
all
Funds
invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the
Statements
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the
Statements
of
Operations. 
Derivative
counterparty
credit
risk
is
managed
through
a
formal
evaluation
of
the
creditworthiness
of
all
potential
counterparties.
Certain
or
all
Funds
attempt
to
reduce
their
exposure
to
counterparty
credit
risk
on
OTC
derivatives,
whenever
possible,
by
entering
into
International
Swaps
and
Derivatives
Association
(ISDA)
master
agreements
with
certain
counterparties.
These
agreements
contain
various
provisions,
including
but
not
limited
to
collateral
requirements,
events
of
default,
or
early
termination.
Termination
events
applicable
to
the
counterparty
include
certain
deteriorations
in
the
credit
quality
of
the
counterparty.
Termination
events
applicable
to
the
Funds
include
failure
of
the
Funds
to
maintain
certain
net
asset
levels
and/or
limit
the
decline
in
net
assets
over
various
periods
of
time.
In
the
event
of
default
or
early
termination,
the
ISDA
master
agreement
gives
the
non-defaulting
party
the
right
to
net
and
close-out
all
transactions
traded,
whether
or
not
arising
under
the
ISDA
agreement,
to
one
net
amount
payable
by
one
counterparty
to
the
other.
However,
absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statements
of
Assets
and
Liabilities.
Early
termination
by
the
counterparty
may
result
in
an
immediate
payment
by
the
Funds
of
any
net
liability
owed
to
that
counterparty
under
the
ISDA
agreement.
At
June
30,
2023,
certain
or
all
Funds
had
OTC
derivatives
in
a
net
liability
position
and
the
aggregate
value
of
collateral
pledged
for
such
contracts
was
as
follows:
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
and
can
be
in
the
form
of
cash
and/or
securities.
For
OTC
derivatives
traded
under
an
ISDA
master
agreement,
posting
of
collateral
is
required
by
either
the
Fund
or
the
applicable
counterparty
if
the
total
net
exposure
of
all
OTC
derivatives
with
the
applicable
counterparty
exceeds
the
minimum
transfer
amount,
which
typically
ranges
from
$100,000
to
$250,000,
and
can
vary
depending
on
the
counterparty
and
the
type
of
agreement.
Generally,
collateral
is
determined
at
the
close
of
Fund
business
each
day
and
any
additional
collateral
required
due
to
changes
in
derivative
values
may
be
delivered
by
the
Fund
or
the
counterparty
the
next
business
day,
or
within
a
few
business
days.
Collateral
pledged
and/or
received
by
the
Fund
for
OTC
derivatives,
if
any,
is
held
in
segregated
accounts
with
the
Fund's
custodian/counterparty
broker
and
can
be
in
the
form
of
cash
and/or
securities.
Unrestricted
cash
may
be
invested
according
to
the
Funds'
investment
objectives.
To
the
extent
that
the
amounts
due
to
the
Fund
from
its
counterparties
are
not
subject
to
collateralization
or
are
not
fully
collateralized,
the
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
At
June
30,
2023,
certain
or
all
Funds
received
U.S.
Treasury
Bonds
and
Notes
as
collateral
for
derivatives,
as
follows:
Net
Liability
Position
Aggregate
Value
of
Collateral
Pledged
Franklin
Mutual
Financial
Services
Fund
$–
$–
Franklin
Mutual
Global
Discovery
Fund
$–
$–
Franklin
Mutual
Quest
Fund
$337,499
$162,755
Franklin
Mutual
Shares
Fund
$359,409
$203,055
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
103
franklintempleton.com
Semiannual
Report
Certain
or
all
Funds
entered
into
exchange
traded
futures
contracts
primarily
to
manage
exposure
to
certain
foreign
currencies
and
equity
price
risk.
A
futures
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
an
asset
at
a
specified
price
on
a
future
date.
Required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statements
of
Assets
and
Liabilities.
At
June
30,
2023,
Franklin
Mutual
Beacon
Fund
had
no
futures
contracts.
Certain
or
all
Funds
entered
into
OTC
forward
exchange
contracts
primarily
to
manage
exposure
to
certain
foreign
currencies.
A
forward
exchange
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
foreign
currency at
a
specific
exchange
rate
on
a
future
date. At
June
30,
2023,
Franklin
Mutual
Beacon
Fund
and
Franklin
Mutual
International
Value
Fund
had
no
forward
exchange
contracts.
Certain
or
all
Funds
purchased
or
wrote
exchange
traded
option
contracts
primarily
to
manage
exposure
to
equity
price
risk.
An
option
is
a
contract
entitling
the
holder
to
purchase
or
sell
a
specific
amount
of
shares
or
units
of
an
asset
or
notional
amount
of
a
swap
(swaption),
at
a
specified
price.
When
an
option
is
purchased
or
written,
an
amount
equal
to
the
premium
paid
or
received
is
recorded
as
an
asset
or
liability,
respectively.
Upon
exercise
of
an
option,
the
acquisition
cost
or
sales
proceeds
of
the
underlying
investment
is
adjusted
by
any
premium
received
or
paid.
Upon
expiration
of
an
option,
any
premium
received
or
paid
is
recorded
as
a
realized
gain
or
loss.
Upon
closing
an
option
other
than
through
expiration
or
exercise,
the
difference
between
the
premium
received
or
paid
and
the
cost
to
close
the
position
is
recorded
as
a
realized
gain
or
loss.
At
June
30,
2023,
Franklin
Mutual
Beacon
Fund,
Franklin
Mutual
Financial
Services
Fund,
Franklin
Mutual
Global
Discovery
Fund,
Franklin
Mutual
International
Value
Fund
and
Franklin
Mutual
Shares
Fund
had
no
options.
See
Note
11
regarding
other
derivative
information.
e.
Restricted
Cash
At
June
30,
2023,
certain
or
all
Funds
held
restricted
cash
in
connection
with
investments
in
certain
derivative
securities.
Restricted
cash
is
held
in
a
segregated
account
with
the
Fund’s
custodian and/or
counterparty
broker
and
is
reflected
in
the
Statements
of
Assets
and
Liabilities.
f.
Securities
Sold
Short
Certain
or
all
Funds
are
engaged
in
selling
securities
short,
which
obligates
the
Fund
to
replace
a
borrowed
security
with
the
same
security
at
current
fair
value.
The
Fund
incurs
a
loss
if
the
price
of
the
security
increases
between
the
date
of
the
short
sale
and
the
date
on
which
the
Fund
replaces
the
borrowed
security.
The
Fund
realizes
a
gain
if
the
price
of
the
security
declines
between
those
dates.
Gains
are
limited
to
the
price
at
which
the
Fund
sold
the
security
short,
while
losses
are
potentially
unlimited
in
size.
The
Fund
is
required
to
establish
a
margin
account
with
the
broker
lending
the
security
sold
short.
While
the
short
sale
is
outstanding,
the
broker
retains
the
proceeds
of
the
short
sale
to
the
extent
necessary
to
meet
margin
requirements
until
the
short
position
is
closed
out.
A
deposit
must
also
be
maintained
with
the
Fund's
custodian/counterparty
broker
consisting
of
cash
and/or
securities
having
a
value
equal
to
a
specified
percentage
of
the
value
of
the
securities
sold
short.
The
Fund
is
obligated
to
pay
fees
for
borrowing
the
securities
sold
short
and
is
required
to
pay
the
counterparty
any
dividends
and/or
interest
due
on
securities
sold
short.
Such
dividends
and/or
interest
and
any
security
borrowing
fees
are
recorded
as
an
expense
to
the
Fund.
At
June
30,
2023,
Franklin
Mutual
Beacon
Fund,
Franklin
Mutual
Financial
Services
Fund,
Franklin
Mutual
Global
Discovery
Fund,
Franklin
Mutual
International
Value
Fund
and
Franklin
Mutual
Shares
Fund
had
no
securities
sold
short.
g.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
Collateral
Received
Franklin
Mutual
Financial
Services
Fund
$79,057
Franklin
Mutual
Global
Discovery
Fund
$15,653,419
Franklin
Mutual
Quest
Fund
$–
Franklin
Mutual
Shares
Fund
$–
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Derivative
Financial
Instruments
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
104
franklintempleton.com
Semiannual
Report
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds,
and/or
uninvested
cash
as
included
in
due
from
custodian
in
the
Statements
of
Assets
and
Liabilities.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statements
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
At
June
30,
2023,
Franklin
Mutual
Beacon
Fund,
Franklin
Mutual
Financial
Services
Fund,
Franklin
Mutual
Global
Discovery
Fund,
Franklin
Mutual
International
Value
Fund
and
Franklin
Mutual
Shares
Fund
had
no
securities
on
loan.
h.
Senior
Floating
Rate
Interests
Certain
or
all
Funds
invest
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank,
the
London
Interbank
Offered
Rate
(LIBOR)
or
the
Senior
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the
Funds
invest
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
i.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their income
tax
returns.
In
the
event
that
EU
reclaims
received
by
the
Funds during a
fiscal
year
exceed
foreign
withholding
taxes
paid
by
the
Funds,
and
the Funds
previously
passed through
to
its
shareholders
foreign
taxes
incurred
by
the
Funds
to
be
used
as
a
credit
or
deduction
on
a
shareholder’s
income
tax
return,
the
Funds will
enter
into
a
closing
agreement
with
the
Internal
Revenue
Service
(IRS)
in
order
to
pay
the
associated
tax
liability
on
behalf
of
the Funds'
shareholders.
Franklin
Mutual
Financial
Services
Fund
and
Franklin
Mutual
Global
Discovery
Fund
previously
determined
to
enter
into
a
closing
agreement
with
the
IRS
and
recorded
any
adjustments
to
estimated
payments
as
a
reduction
to
income,
as
reflected
in
the
Statements
of
Operations.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
1.
Organization
and
Significant
Accounting
Policies
(continued)
g.
Securities
Lending
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
105
franklintempleton.com
Semiannual
Report
based
on
its
technical
merits.
As
of
June
30,
2023, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
j.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
Certain
or
all
Funds
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Funds.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
and
dividends
declared
on
securities
sold
short
are
recorded
on
the
ex-
dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
k.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
l.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
i.
Income
and
Deferred
Taxes
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
106
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
June
30
,
202
3
,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds'
shares
were
as
follows:
1
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Shares
Amount
Shares
Amount
Class
Z
Class
Z
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
2,586,384
$38,949,166
416,252
$9,882,636
Shares
redeemed
...............................
(8,631,946)
(129,835,202)
(648,074)
(15,254,756)
Net
increase
(decrease)
..........................
(6,045,562)
$(90,886,036)
(231,822)
$(5,372,120)
Year
ended
December
31,
2022
Shares
sold
...................................
4,518,425
$72,353,692
549,487
$13,771,776
Shares
issued
in
reinvestment
of
distributions
..........
12,611,801
177,940,210
109,208
2,552,205
Shares
redeemed
...............................
(16,880,382)
(265,740,444)
(863,058)
(20,754,913)
Net
increase
(decrease)
..........................
249,844
$(15,446,542)
(204,363)
$(4,430,932)
Class
A
Class
A
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
a
...................................
2,637,020
$38,797,989
499,125
$11,515,755
Shares
redeemed
...............................
(5,124,162)
(75,789,565)
(1,132,856)
(26,052,407)
Net
increase
(decrease)
..........................
(2,487,142)
$(36,991,576)
(633,731)
$(14,536,652)
Year
ended
December
31,
2022
Shares
sold
a
...................................
3,950,838
$62,998,373
1,404,392
$35,638,190
Shares
issued
in
reinvestment
of
distributions
..........
5,184,904
72,072,434
199,079
4,668,407
Shares
redeemed
...............................
(8,517,905)
(132,311,584)
(2,030,320)
(48,642,875)
Net
increase
(decrease)
..........................
617,837
$2,759,223
(426,849)
$(8,336,278)
Class
C
Class
C
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
190,499
$2,827,166
51,254
$1,171,230
Shares
redeemed
a
..............................
(346,131)
(5,175,223)
(184,108)
(4,244,940)
Net
increase
(decrease)
..........................
(155,632)
$(2,348,057)
(132,854)
$(3,073,710)
Year
ended
December
31,
2022
Shares
sold
...................................
162,368
$2,643,400
145,932
$3,719,658
Shares
issued
in
reinvestment
of
distributions
..........
113,683
1,581,132
9,028
210,721
Shares
redeemed
a
..............................
(519,947)
(8,211,773)
(387,486)
(9,182,689)
Net
increase
(decrease)
..........................
(243,896)
$(3,987,241)
(232,526)
$(5,252,310)
Class
R
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
107
franklintempleton.com
Semiannual
Report
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Shares
Amount
Shares
Amount
Class
R
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
11,740
$169,038
—
$—
Shares
redeemed
...............................
(27,260)
(400,239)
—
—
Net
increase
(decrease)
..........................
(15,520)
$(231,201)
—
$—
Six
Months
ended
December
31,
2022
Shares
sold
...................................
11,936
$185,508
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
8,778
120,118
—
—
Shares
redeemed
...............................
(4,829)
(74,635)
—
—
Net
increase
(decrease)
..........................
15,885
$230,991
—
$—
Class
R6
Class
R6
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
776,521
$11,366,535
98,129
$2,372,109
Shares
redeemed
...............................
(1,967,895)
(30,490,445)
(80,210)
(2,014,216)
Net
increase
(decrease)
..........................
(1,191,374)
$(19,123,910)
17,919
$357,893
Year
ended
December
31,
2022
Shares
sold
...................................
844,073
$13,800,081
31,598
$790,271
Shares
issued
in
reinvestment
of
distributions
..........
678,737
9,575,351
2,125
50,005
Shares
redeemed
...............................
(2,894,436)
(44,166,071)
(62,999)
(1,572,957)
Net
increase
(decrease)
..........................
(1,371,626)
$(20,790,639)
(29,276)
$(732,681)
Franklin
Mutual
Global
Discovery
Fund
Franklin
Mutual
International
Value
Fund
Shares
Amount
Shares
Amount
Class
Z
Class
Z
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
3,131,538
$90,451,605
1,197,738
$26,605,704
Shares
redeemed
...............................
(7,554,392)
(217,475,861)
(1,622,303)
(36,267,502)
Net
increase
(decrease)
..........................
(4,422,854)
$(127,024,256)
(424,565)
$(9,661,798)
Year
ended
December
31,
2022
Shares
sold
...................................
4,894,660
$146,445,586
5,006,874
$107,549,542
Shares
issued
in
reinvestment
of
distributions
..........
9,606,859
258,820,963
607,689
12,330,793
Shares
redeemed
...............................
(15,602,455)
(458,241,523)
(6,848,287)
(141,306,719)
Net
increase
(decrease)
..........................
(1,100,936)
$(52,974,974)
(1,233,724)
$(21,426,384)
Class
A
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
108
franklintempleton.com
Semiannual
Report
Franklin
Mutual
Global
Discovery
Fund
Franklin
Mutual
International
Value
Fund
Shares
Amount
Shares
Amount
Class
A
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
a
...................................
8,342,644
$233,810,724
948,218
$20,539,041
Shares
redeemed
...............................
(16,307,533)
(457,904,878)
(1,132,266)
(24,442,312)
Net
increase
(decrease)
..........................
(7,964,889)
$(224,094,154)
(184,048)
$(3,903,271)
Year
ended
December
31,
2022
Shares
sold
a
...................................
9,521,128
$277,104,275
1,143,930
$23,416,157
Shares
issued
in
reinvestment
of
distributions
..........
17,470,833
457,401,627
385,864
7,567,616
Shares
redeemed
...............................
(29,745,785)
(854,758,276)
(2,238,008)
(45,164,167)
Net
increase
(decrease)
..........................
(2,753,824)
$(120,252,374)
(708,214)
$(14,180,394)
Class
C
Class
C
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
770,702
$21,586,851
48,997
$1,078,069
Shares
redeemed
a
..............................
(2,361,345)
(66,616,322)
(300,891)
(6,632,692)
Net
increase
(decrease)
..........................
(1,590,643)
$(45,029,471)
(251,894)
$(5,554,623)
Year
ended
December
31,
2022
Shares
sold
...................................
657,450
$19,234,736
57,998
$1,215,483
Shares
issued
in
reinvestment
of
distributions
..........
770,098
20,104,071
16,514
323,733
Shares
redeemed
a
..............................
(3,957,748)
(115,078,640)
(466,964)
(9,592,370)
Net
increase
(decrease)
..........................
(2,530,200)
$(75,739,833)
(392,452)
$(8,053,154)
Class
R
Class
R
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
242,456
$6,701,042
56,632
$1,158,180
Shares
redeemed
...............................
(513,196)
(14,194,339)
(53,789)
(1,146,636)
Net
increase
(decrease)
..........................
(270,740)
$(7,493,297)
2,843
$11,544
Year
ended
December
31,
2022
Shares
sold
...................................
391,507
$11,216,698
11,242
$218,562
Shares
issued
in
reinvestment
of
distributions
..........
414,590
10,657,235
886
16,953
Shares
redeemed
...............................
(1,096,319)
(31,559,637)
(11,636)
(228,959)
Net
increase
(decrease)
..........................
(290,222)
$(9,685,704)
492
$6,556
Class
R6
Class
R6
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
1,765,572
$49,814,404
192,791
$4,247,489
Shares
redeemed
...............................
(2,376,421)
(68,689,940)
(286,548)
(6,437,557)
Net
increase
(decrease)
..........................
(610,849)
$(18,875,536)
(93,757)
$(2,190,068)
Year
ended
December
31,
2022
Shares
sold
...................................
2,373,607
$70,078,122
199,706
$4,124,439
Shares
issued
in
reinvestment
of
distributions
..........
1,588,180
42,784,151
11,098
225,059
Shares
redeemed
...............................
(5,311,125)
(159,233,882)
(264,096)
(5,454,541)
Net
increase
(decrease)
..........................
(1,349,338)
$(46,371,609)
(53,292)
$(1,105,043)
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
109
franklintempleton.com
Semiannual
Report
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Shares
Amount
Shares
Amount
Class
Z
Class
Z
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
4,505,571
$58,668,283
2,612,559
$60,943,904
Shares
redeemed
...............................
(11,054,245)
(144,609,350)
(9,512,061)
(222,251,858)
Net
increase
(decrease)
..........................
(6,548,674)
$(85,941,067)
(6,899,502)
$(161,307,954)
Year
ended
December
31,
2022
Shares
sold
...................................
9,784,272
$141,281,538
8,798,481
$213,065,039
Shares
issued
in
reinvestment
of
distributions
..........
5,582,185
71,608,119
13,845,004
313,006,127
Shares
redeemed
...............................
(23,183,656)
(323,721,592)
(31,157,436)
(757,248,961)
Net
increase
(decrease)
..........................
(7,817,199)
$(110,831,935)
(8,513,951)
$(231,177,795)
Class
A
Class
A
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
a
...................................
2,752,182
$34,669,822
4,784,295
$108,560,218
Shares
redeemed
...............................
(5,944,207)
(75,680,723)
(11,138,285)
(255,086,571)
Net
increase
(decrease)
..........................
(3,192,025)
$(41,010,901)
(6,353,990)
$(146,526,353)
Year
ended
December
31,
2022
Shares
sold
a
...................................
4,854,484
$67,636,417
5,456,941
$135,249,494
Shares
issued
in
reinvestment
of
distributions
..........
1,674,995
21,117,918
10,408,356
231,619,673
Shares
redeemed
...............................
(8,979,450)
(122,785,711)
(17,268,207)
(423,494,401)
Net
increase
(decrease)
..........................
(2,449,971)
$(34,031,376)
(1,402,910)
$(56,625,234)
Class
C
Class
C
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
252,972
$3,172,843
655,366
$15,030,181
Shares
redeemed
a
..............................
(607,086)
(7,723,500)
(1,091,246)
(25,103,555)
Net
increase
(decrease)
..........................
(354,114)
$(4,550,657)
(435,880)
$(10,073,374)
Year
ended
December
31,
2022
Shares
sold
...................................
334,623
$4,632,285
1,322,415
$32,820,116
Shares
issued
in
reinvestment
of
distributions
..........
68,787
865,760
583,262
12,902,802
Shares
redeemed
a
..............................
(925,818)
(12,572,007)
(2,093,687)
(51,764,132)
Net
increase
(decrease)
..........................
(522,408)
$(7,073,962)
(188,010)
$(6,041,214)
Class
R
Class
R
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
30,438
$379,267
106,133
$2,421,225
Shares
redeemed
...............................
(112,986)
(1,431,776)
(163,621)
(3,752,802)
Net
increase
(decrease)
..........................
(82,548)
$(1,052,509)
(57,488)
$(1,331,577)
Year
ended
December
31,
2022
Shares
sold
...................................
278,639
$3,958,251
159,279
$3,993,747
Shares
issued
in
reinvestment
of
distributions
..........
9,769
121,099
155,234
3,434,257
Shares
redeemed
...............................
(180,023)
(2,365,144)
(458,550)
(11,292,293)
Net
increase
(decrease)
..........................
108,385
$1,714,206
(144,037)
$(3,864,289)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
110
franklintempleton.com
Semiannual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
Franklin
Mutual
Beacon
Fund
and
Franklin
Mutual
Quest
Fund
pay
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Franklin
Mutual
based
on
the
average
daily
net
assets
of
each
of
the
Funds
as
follows:
Franklin
Mutual
Financial
Services
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Franklin
Mutual
based
on
the
average
daily
net
assets
of
each
of
the
Funds
as
follows:
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
June
30,
2023
Shares
sold
...................................
219,320
$2,857,246
386,009
$8,837,083
Shares
redeemed
...............................
(418,971)
(5,473,867)
(902,780)
(21,172,626)
Net
increase
(decrease)
..........................
(199,651)
$(2,616,621)
(516,771)
$(12,335,543)
Year
ended
December
31,
2022
Shares
sold
...................................
480,288
$6,781,496
506,509
$12,677,849
Shares
issued
in
reinvestment
of
distributions
..........
93,655
1,200,472
1,191,226
26,903,261
Shares
redeemed
...............................
(813,586)
(11,327,805)
(2,905,856)
(72,400,721)
Net
increase
(decrease)
..........................
(239,643)
$(3,345,837)
(1,208,121)
$(32,819,611)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Mutual
Advisers,
LLC
(Franklin
Mutual)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.675%
Up
to
and
including
$5
billion
0.645%
Over
$5
billion,
up
to
and
including
$7
billion
0.625%
Over
$7
billion,
up
to
and
including
$10
billion
0.615%
In
excess
of
$10
billion
Annualized
Fee
Rate
Net
Assets
0.875%
Up
to
and
including
$1
billion
0.845%
Over
$1
billion,
up
to
and
including
$2
billion
0.825%
Over
$2
billion,
up
to
and
including
$5
billion
0.805%
In
excess
of
$5
billion
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
111
franklintempleton.com
Semiannual
Report
Franklin
Mutual
Global
Discovery
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Franklin
Mutual
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Effective
May
1,
2023,
Franklin
Mutual
International
Value
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Franklin
Mutual
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Prior
to
May
1,
2023,
Franklin
Mutual
International
Value
Fund
paid
fees,
calculated
daily
and
paid
monthly,
to
Franklin
Mutual
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Mutual
Shares
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Franklin
Mutual
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Annualized
Fee
Rate
Net
Assets
0.845%
Up
to
and
including
$7
billion
0.825%
Over
$7
billion,
up
to
and
including
$10
billion
0.805%
Over
$10
billion,
up
to
and
including
$13
billion
0.785%
Over
$13
billion,
up
to
and
including
$16
billion
0.765%
Over
$16
billion,
up
to
and
including
$19
billion
0.745%
Over
$19
billion,
up
to
and
including
$22
billion
0.725%
Over
$22
billion,
up
to
and
including
$25
billion
0.705%
Over
$25
billion,
up
to
and
including
$28
billion
0.685%
In
excess
of
$28
billion
Annualized
Fee
Rate
Net
Assets
0.800%
Up
to
and
including
$1
billion
0.770%
Over
$1
billion,
up
to
and
including
$2
billion
0.750%
Over
$2
billion,
up
to
and
including
$5
billion
0.730%
In
excess
of
$5
billion
Annualized
Fee
Rate
Net
Assets
0.875%
Up
to
and
including
$1
billion
0.845%
Over
$1
billion,
up
to
and
including
$2
billion
0.825%
Over
$2
billion,
up
to
and
including
$5
billion
0.805%
In
excess
of
$5
billion
Annualized
Fee
Rate
Net
Assets
0.675%
Up
to
and
including
$5
billion
0.645%
Over
$5
billion,
up
to
and
including
$10
billion
0.625%
Over
$10
billion,
up
to
and
including
$15
billion
0.595%
Over
$15
billion,
up
to
and
including
$20
billion
0.585%
Over
$20
billion,
up
to
and
including
$25
billion
0.565%
Over
$25
billion,
up
to
and
including
$30
billion
0.555%
Over
$30
billion,
up
to
and
including
$35
billion
0.545%
In
excess
of
$35
billion
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
112
franklintempleton.com
Semiannual
Report
For
the
period
ended
June
30,
2023,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Franklin
Mutual,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Franklin
Mutual
based
on
the
Funds’
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class
with
the
exception
of
Class
Z
and
Class
R6
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
reimbursement
distribution
plans,
the
Funds
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Class
C
and
R
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
The
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Gross
effective
investment
management
fee
rate
...................
0.675%
0.875%
0.841%
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Gross
effective
investment
management
fee
rate
...................
0.850%
0.675%
0.667%
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Class
A
................................................
0.35%
0.35%
0.35%
Class
C
................................................
1.00%
1.00%
1.00%
Class
R
................................................
0.50%
—%
0.50%
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Class
A
................................................
0.35%
0.35%
0.35%
Class
C
................................................
1.00%
1.00%
1.00%
Class
R
................................................
0.50%
0.50%
0.50%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
113
franklintempleton.com
Semiannual
Report
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
June
30,
2023,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/
dealers
..................................................
$14,021
$6,652
$107,130
CDSC
retained
............................................
$764
$2,191
$9,523
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/
dealers
..................................................
$5,008
$11,890
$43,322
CDSC
retained
............................................
$253
$1,681
$2,811
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Transfer
agent
fees
.........................................
$469,519
$98,782
$1,825,287
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Transfer
agent
fees
.........................................
$151,426
$471,973
$1,156,311
3.
Transactions
with
Affiliates
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
114
franklintempleton.com
Semiannual
Report
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
June
30,
2023,
investments
in
affiliated
management
investment
companies
were
as
follows:
g.
Waiver
and
Expense
Reimbursements
Franklin
Mutual
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
Franklin
Mutual
Global
Discovery
Fund
so
that
the
operating
expenses
(excluding
interest
expense,
distribution
fees,
acquired
fund
fees
and
expenses,
expenses
related
to
securities
sold
short,
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
do
not
exceed
1.00%
based
on
the
average
net
assets
of
each
class
until
April
30,
2024.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
Effective
May
1,
2023,
Franklin
Mutual
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
Franklin
Mutual
International
Value
Fund
so
that
the
operating
expenses
(excluding
interest
expense,
distribution
fees,
acquired
fund
fees
and
expenses,
expenses
related
to
securities
sold
short,
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
do
not
exceed
0.95%
based
on
the
average
net
assets
of
each
class
until
April
30,
2024.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
For
Franklin
Mutual
Beacon
Fund,
Franklin
Mutual
International
Value
Fund
and
Franklin
Mutual
Quest
Fund,
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.02%
based
on
the
average
net
assets
of
the
class
until
April
30,
2024.
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Mutual
Financial
Services
Fund
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.699%
$3,000
$467,000
$(470,000)
$—
$—
$—
—
$420
Total
Affiliated
Securities
...
$3,000
$467,000
$(470,000)
$—
$—
$—
$420
Franklin
Mutual
Quest
Fund
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.699%
$—
$11,946,000
$(11,846,000)
$—
$—
$100,000
100,000
$8,613
Total
Affiliated
Securities
...
$—
$11,946,000
$(11,846,000)
$—
$—
$100,000
$8,613
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
115
franklintempleton.com
Semiannual
Report
For
Franklin
Mutual
Financial
Services
Fund,
Franklin
Mutual
Global
Discovery
Fund
and
Franklin
Mutual
Shares
Fund,
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
April
30,
2024.
4.
Expense
Offset
Arrangement
The
Funds
have entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses.
During
the
period
ended
June
30,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
Effective
July
10,
2023,
earned
credits,
if
any,
will
be
recognized
as
income.
5.
Independent
Trustees'
Retirement
Plan
On
January
1,
1993,
the
Trust
adopted
an
Independent
Trustees’
Retirement
Plan
(Plan).
The
Plan
is
an
unfunded
defined
benefit
plan
that
provides
benefit
payments
to
Trustees
whose
length
of
service
and
retirement
age
meets
the
eligibility
requirements
of
the
Plan.
Benefits
under
the
Plan
are
based
on
years
of
service
and
fees
paid
to
each
trustee
at
the
time
of
retirement.
Effective
in
December
1996,
the
Plan
was
closed
to
new
participants.
During
the
period
ended
June
30,
2023,
the
Funds'
projected
benefit
obligation
and
benefit
payments
under
the
Plan
were
as
follows:
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
a
Projected
benefit
obligation
at
June
30,
2023
.....................
$71,203
$5,726
$457,167
b
Increase
(decrease)
in
projected
benefit
obligation
.................
$(92,285)
$(11,842)
$(276,285)
Benefit
payments
made
to
retired
trustees
........................
$(4,497)
$(535)
$(13,159)
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
a
Projected
benefit
obligation
at
June
30,
2023
.....................
$79,049
$127,480
$453,446
b
Increase
(decrease)
in
projected
benefit
obligation
.................
$(21,911)
$(89,223)
$(228,753)
Benefit
payments
made
to
retired
trustees
........................
$(1,129)
$(4,089)
$(10,384)
a
The
projected
benefit
obligation
is
included
in
trustees’
fees
and
expenses
in
the
Statements
of
Assets
and
Liabilities.
b
The
increase
(decrease)
in
projected
benefit
obligation
is
reflected
in
trustees’
fees
and
expenses
in
the
Statements
of
Operations.
3.
Transactions
with
Affiliates
(continued)
g.
Waiver
and
Expense
Reimbursements
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
116
franklintempleton.com
Semiannual
Report
6.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
December
31,
2022,
the
capital
loss
carryforwards
were
as
follows:
a
Includes
$
2
,
936
,
881
from
the
acquired
Franklin
Mutual
International
Fund,
which
may
be
carried
over
to
offset
future
capital
gains,
subject
to
certain
limitations.
At
June
30,
2023,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
foreign
currency
transactions,
wash
sales,
EU
reclaims,
passive
foreign
investment
company
shares,
bond
discounts
and
premiums,
tax
straddles,
derivative
financial
instruments
and
corporate
actions.
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
...............................................................
$
—
$—
Long
term
...............................................................
22,550,737
 2,936,881
a
Total
capital
loss
carryforwards
..............................................
$22,550,737
$2,936,881
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
...............................................................
$3,622,477
$56,142,413
Long
term
...............................................................
 101,543,973
 229,013,112
Total
capital
loss
carryforwards
..............................................
$105,166,450
$285,155,525
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
a
a
a
a
Cost
of
investments
........................................
$2,404,948,235
$299,656,130
$7,183,013,286
Unrealized
appreciation
......................................
$703,899,937
$59,920,365
$2,016,261,595
Unrealized
depreciation
......................................
(82,981,266)
(29,029,068)
(203,478,803)
Net
unrealized
appreciation
(depreciation)
........................
$620,918,671
$30,891,297
$1,812,782,792
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
a
a
a
a
Cost
of
investments
........................................
$698,367,661
$2,662,750,187
$5,617,461,349
Unrealized
appreciation
......................................
$111,542,251
$185,737,228
$1,495,297,055
Unrealized
depreciation
......................................
(29,459,644)
(264,757,931)
(174,701,103)
Net
unrealized
appreciation
(depreciation)
........................
$82,082,607
$(79,020,703)
$1,320,595,952
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
117
franklintempleton.com
Semiannual
Report
7.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities
and
securities
sold
short)
for
the
period
ended
June
30,
2023,
were
as
follows:
At
June
30,
2023,
in
connection
with
securities
lending
transactions,
Franklin
Mutual
Quest
Fund
loaned
equity
investments
and
received $104,000
of
cash
collateral. The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
8.
Credit Risk
and
Defaulted
Securities
The
Funds
may
purchase
the
pre-default
or
defaulted
debt
of
distressed
companies.
Distressed
companies
are
financially
troubled
and
could
be
or
are
already
involved
in
financial
restructuring
or
bankruptcy.
Risks
associated
with
purchasing
these
securities
include
the
possibility
that
the
bankruptcy
or
other
restructuring
process
takes
longer
than
expected,
or
that
distributions
in
restructuring
are
less
than
anticipated,
either
or
both
of
which
may
result
in
unfavorable
consequences
to
the
Funds.
If
it
becomes
probable
that
the
income
on
debt
securities,
including
those
of
distressed
companies,
will
not
be
collected,
the
Funds
discontinue
accruing
income
and
recognize
an
adjustment
for
uncollectible
interest.
At
June
30,
2023,
the
aggregate
long
value
of
distressed
company
securities
for
which
interest
recognition
has
been
discontinued
for
Franklin
Mutual
Quest
Fund
was
$3,600,604,
representing
0.1%
of
the
Fund's
net
assets.
For
information
as
to
specific
securities,
see
the
accompanying
Schedule
of
Investments.
At
June
30,
2023,
Franklin
Mutual
Beacon
Fund,
Franklin
Mutual
Financial
Services
Fund,
Franklin
Mutual
Global
Discovery
Fund,
Franklin
Mutual
International
Value
Fund
and
Franklin
Mutual
Shares
Fund
did
not
hold
any
distressed
company
securities
for
which
interest
recognition
has
been
discontinued.
9.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Purchases
...............................................
$666,709,117
$45,233,214
$1,663,437,360
Sales
...................................................
$790,071,401
$67,707,162
$2,029,511,843
Franklin
Mutual
International
Value
Fund
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Purchases
...............................................
$322,036,794
$1,302,228,264
$1,136,760,684
Sales
...................................................
$326,197,271
$1,439,056,237
$1,627,359,363
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
118
franklintempleton.com
Semiannual
Report
10.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
June
30,
2023,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Mutual
Beacon
Fund
2,846,329
International
Automotive
Components
Group
Brazil
LLC
4/13/06
-
12/26/08
$
1,890,264
$
90,775
Total
Restricted
Securities
(Value
is
0.0%
†
of
Net
Assets)
.............
$1,890,264
$90,775
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Mutual
Global
Discovery
Fund
3,819,425
International
Automotive
Components
Group
Brazil
LLC
4/13/06
-
12/26/08
$
2,536,499
$
121,809
Total
Restricted
Securities
(Value
is
0.0%
†
of
Net
Assets)
.............
$2,536,499
$121,809
Principal
Amount
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Mutual
Quest
Fund
106,532
Inclusive
Language
Services
LLC,
Membership
Interests,
B
...............................
4/30/14
$
—
$
17,315,589
2,548,299
International
Automotive
Components
Group
Brazil
LLC
4/13/06
-
12/26/08
1,692,334
81,270
224,279
Sorenson
Communications
LLC,
Membership
Interests
4/01/22
—
—
25,335,818
Sorenson
Communications
LLC,
Term
Loan,
A,
PIK,
10%,
4/01/30
.............................
4/01/22
-
6/30/23
25,260,28
1
23,856,504
104,434,858
Sorenson
Communications
LLC,
Term
Loan,
B,
PIK,
8%,
4/01/30
..................................
4/01/22
-
6/30/23
103,605,535
83,760,314
1
Tenerity
,
Inc.
...............................
1/31/22
204
48
48,380
Tenerity
,
Inc.,
4/10/24
.........................
5/11/17
6,590,959
798,156
7,104
Wayne
Services
Legacy,
Inc.
...................
1/22/19
—
—
1,714,983
Windstream
Holdings,
Inc.
.....................
9/21/20
-
6/09/23
14,021,182
15,443,468
Total
Restricted
Securities
(Value
is
5.4%
of
Net
Assets)
..............
$151,170,495
$141,255,349
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Mutual
Shares
Fund
7,234,813
International
Automotive
Components
Group
Brazil
LLC
4/13/06
-
12/26/08
$
4,804,678
$
230,733
7,469
Wayne
Services
Legacy,
Inc.
...................
1/22/19
—
—
2,243,497
Windstream
Holdings,
Inc.
.....................
9/21/20
-
6/09/23
18,342,152
20,202,751
Total
Restricted
Securities
(Value
is
0.3%
of
Net
Assets)
..............
$23,146,830
$20,433,484
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
119
franklintempleton.com
Semiannual
Report
11.
Other
Derivative
Information
At
June
30,
2023,
investments
in
derivative
contracts
are
reflected
in
the
Statements of
Assets
and
Liabilities
as
follows:
†
Rounds
to
less
than
0.1%
of
net
assets.
Asset
Derivatives
Liability
Derivatives
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Franklin
Mutual
Financial
Services
Fund
Foreign
exchange
contracts
..
Variation
margin
on
futures
contracts
$—
Variation
margin
on
futures
contracts
$148,426
a
Unrealized
appreciation
on
OTC
forward
exchange
contracts
274,994
Unrealized
depreciation
on
OTC
forward
exchange
contracts
131,497
Total
....................
$274,994
$279,923
Franklin
Mutual
Global
Discovery
Fund
Foreign
exchange
contracts
..
Variation
margin
on
futures
contracts
—
Variation
margin
on
futures
contracts
3,674,731
a
Unrealized
appreciation
on
OTC
forward
exchange
contracts
14,805,961
Unrealized
depreciation
on
OTC
forward
exchange
contracts
563,696
Total
....................
$14,805,961
$4,238,427
Franklin
Mutual
International
Value
Fund
Equity
contracts
...........
Variation
margin
on
futures
contracts
—
Variation
margin
on
futures
contracts
8,677
a
Total
....................
$—
$8,677
Franklin
Mutual
Quest
Fund
Foreign
exchange
contracts
..
Variation
margin
on
futures
contracts
—
Variation
margin
on
futures
contracts
420,417
a
Unrealized
appreciation
on
OTC
forward
exchange
contracts
232,157
Unrealized
depreciation
on
OTC
forward
exchange
contracts
516,079
Equity
contracts
...........
Investments
in
securities,
at
value
132,000
b
Options
written,
at
value
4,421,750
Total
....................
$364,157
$5,358,246
Franklin
Mutual
Shares
Fund
Foreign
exchange
contracts
..
Variation
margin
on
futures
contracts
—
Variation
margin
on
futures
contracts
212,705
a
Unrealized
appreciation
on
OTC
forward
exchange
contracts
35,303
Unrealized
depreciation
on
OTC
forward
exchange
contracts
394,712
Total
....................
$35,303
$607,417
10.
Restricted
Securities
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
120
franklintempleton.com
Semiannual
Report
For
the
period
ended
June
30,
2023,
the
effect
of
derivative
contracts
in
the
Statements
of
Operations
was
as
follows:
a
This
amount
reflects
the
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedules
of
Investments.
Only
the
variation
margin
receivable/
payable
at
period
end
is
separately
reported
within
the
Statements
of
Assets
and
Liabilities.
Prior
variation
margin
movements
were
recorded
to
cash
upon
receipt
or
payment.
b
Purchased
option
contracts
are
included
in
investments
in
securities,
at
value
in
the
Statements
of
Assets
and
Liabilities.
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Period
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Period
Franklin
Mutual
Financial
Services
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
  appreciation
(depreciation)
on:
Foreign
exchange
contracts
.....
Futures
contracts
$(156,141)
Futures
contracts
$(111,214)
Forward
exchange
contracts
(2,241,851)
Forward
exchange
contracts
1,641,086
Total
.......................
$(2,397,992)
$1,529,872
Franklin
Mutual
Global
Discovery
Fund
Foreign
exchange
contracts
.....
Futures
contracts
(2,625,186)
Futures
contracts
(668,161)
Forward
exchange
contracts
(8,797,338)
Forward
exchange
contracts
33,970,935
Total
.......................
$(11,422,524)
$33,302,774
Franklin
Mutual
International
Value
Fund
Foreign
exchange
contracts
.....
Futures
contracts
(3,774,764)
Futures
contracts
848,440
Forward
exchange
contracts
(5,443,911)
Forward
exchange
contracts
1,788,975
Equity
Contracts
..............
Futures
contracts
96,113
Futures
contracts
33,282
Total
.......................
$(9,122,562)
$2,670,697
Franklin
Mutual
Quest
Fund
Foreign
exchange
contracts
.....
Futures
contracts
(624,345)
Futures
contracts
(523,015)
Forward
exchange
contracts
(3,447,201)
Forward
exchange
contracts
1,714,881
Equity
Contracts
..............
Investments
(592,958)
a
Investments
(132,765)
a
Written
options
1,607,726
Written
options
(1,619,335)
Total
.......................
$(3,056,778)
$(560,234)
11.
Other
Derivative
Information
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
121
franklintempleton.com
Semiannual
Report
For
the period
ended
June
30,
2023,
the
average
month
end
notional
amount
of
futures
contracts
and
options
and
the
average
month
end
contract
value
for
forward
exchange
contracts,
were
as
follows:
See
Note
1(d)
regarding
derivative
financial
instruments. 
12.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
June
30,
2023,
investments
in
“affiliated
companies”
were
as
follows:
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Period
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Period
Franklin
Mutual
Shares
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
  appreciation
(depreciation)
on:
Foreign
exchange
contracts
.....
Futures
contracts
$(597,425)
Futures
contracts
$(599,362)
Forward
exchange
contracts
(5,485,193)
Forward
exchange
contracts
3,738,410
Total
.......................
$(6,082,618)
$3,139,048
a
Purchased
option
contracts
are
included
in
net
realized
gain
(loss)
from
investments
and
net
change
in
unrealized
appreciation
(depreciation)
on
investments
in
the
Statements
of
Operations.
Franklin
Mutual
Financial
Services
Fund
Franklin
Mutual
Global
Discovery
Fund
Franklin
Mutual
International
Value
Fund
Futures
contracts
..........................................
$
12,722,104
$286,509,835
$
83,467,353
Forward
exchange
contracts
..................................
50,278,960
629,196,966
126,770,773
Franklin
Mutual
Quest
Fund
Franklin
Mutual
Shares
Fund
Futures
contracts
...........................................................
$40,316,112
$28,582,323
Forward
exchange
contracts
...................................................
97,187,464
89,991,180
Options
...................................................................
186,520,029
—
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
Franklin
Mutual
Financial
Services
Fund
Non-Controlled
Affiliates
Dividends
AB&T
Financial
Corp
...
$
136,791
$
—
$
—
$
—
$
(18,484)
$
118,307
226,100
$
288
11.
Other
Derivative
Information
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
122
franklintempleton.com
Semiannual
Report
13.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
2,
2024.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
Franklin
Mutual
Financial
Services
Fund
(continued)
Non-Controlled
Affiliates
Total
Affiliated
Securities
(Value
is
0.0%
*
of
Net
Assets)
............
$136,791
$—
$—
$—
$(18,484)
$118,307
$288
Franklin
Mutual
Quest
Fund
Non-Controlled
Affiliates
Dividends
Inclusive
Language
Services
LLC,
Membership
Interests,
B
..........
$
9,476,129
$
—
$
—
$
—
$
7,839,460
$
17,315,589
106,532
$
—
Sorenson
Communications
LLC,
Membership
Interests
—
—
—
—
—
—
224,279
—
Wayne
Services
Legacy,
Inc.
...............
—
—
—
—
—
—
7,104
—
Interest
Sorenson
Communications
LLC,
Term
Loan,
A,
PIK,
10%,
4/01/30
........
23,170,071
630,904
a
—
—
55,529
23,856,504
25,335,818
1,826,370
Sorenson
Communications
LLC,
Term
Loan,
B,
PIK,
8%,
4/01/30
.........
78,322,185
4,290,158
a
—
—
1,147,971
83,760,314
104,434,858
7,881,423
Total
Affiliated
Securities
(Value
is
4.8%
of
Net
Assets)
............
$110,968,385
$4,921,062
$—
$—
$9,042,960
$124,932,407
$9,707,793
Franklin
Mutual
Shares
Fund
Non-Controlled
Affiliates
Dividends
International
Automotive
Components
Group
Brazil
LLC
...............
254,651
—
—
—
(23,918)
230,733
7,234,813
—
Wayne
Services
Legacy,
Inc.
...............
—
—
—
—
—
—
7,469
—
Total
Affiliated
Securities
(Value
is
0.0%
*
of
Net
Assets)
............
$254,651
$—
$—
$—
$(23,918)
$230,733
$—
*
Rounds
to
less
than
0.1%
of
net
assets.
a
May
include
accretion,
amortization,
partnership
adjustments,
and/or
corporate
actions.
12.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
123
franklintempleton.com
Semiannual
Report
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
June
30,
2023,
the
Funds
did
not
use
the
Global
Credit
Facility.
14.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
June
30,
2023,
in
valuing
the
Funds'
assets
and
liabilities
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Mutual
Beacon
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
—
$
91,955,038
$
—
$
91,955,038
Air
Freight
&
Logistics
...................
65,882,083
—
—
65,882,083
Automobile
Components
.................
—
—
90,775
90,775
Banks
...............................
126,680,858
167,052,231
—
293,733,089
Beverages
...........................
—
100,478,928
—
100,478,928
Building
Products
......................
89,727,502
—
—
89,727,502
Capital
Markets
........................
97,248,927
—
—
97,248,927
Consumer
Staples
Distribution
&
Retail
......
—
60,255,320
—
60,255,320
Containers
&
Packaging
.................
67,039,321
—
—
67,039,321
Diversified
Telecommunication
Services
.....
—
94,190,940
—
94,190,940
Energy
Equipment
&
Services
.............
70,119,291
—
—
70,119,291
Entertainment
.........................
59,035,543
—
—
59,035,543
Financial
Services
......................
83,600,525
—
—
83,600,525
Health
Care
Equipment
&
Supplies
.........
119,316,649
—
—
119,316,649
Health
Care
Providers
&
Services
..........
68,824,964
—
—
68,824,964
Household
Products
....................
—
99,996,193
—
99,996,193
Insurance
............................
93,157,510
—
—
93,157,510
Interactive
Media
&
Services
..............
88,128,975
—
—
88,128,975
Machinery
............................
91,911,366
—
—
91,911,366
Media
...............................
97,147,323
—
—
97,147,323
Metals
&
Mining
.......................
—
70,174,508
—
70,174,508
Oil,
Gas
&
Consumable
Fuels
.............
—
110,313,321
—
110,313,321
Personal
Care
Products
.................
—
90,408,133
—
90,408,133
Pharmaceuticals
.......................
250,279,660
92,803,097
—
343,082,757
13.
Credit
Facility
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
124
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Mutual
Beacon
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Retail
REITs
..........................
$
66,070,378
$
—
$
—
$
66,070,378
Software
.............................
56,532,887
—
—
56,532,887
Textiles,
Apparel
&
Luxury
Goods
..........
62,357,417
92,905,495
—
155,262,912
Tobacco
.............................
—
88,070,323
—
88,070,323
Trading
Companies
&
Distributors
..........
86,611,425
—
—
86,611,425
Companies
in
Liquidation
..................
—
—
—
a
—
Short
Term
Investments
...................
—
127,500,000
—
127,500,000
Total
Investments
in
Securities
...........
$1,739,672,604
$1,286,103,527
b
$90,775
$3,025,866,906
Franklin
Mutual
Financial
Services
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Banks
...............................
69,856,100
43,449,365
—
113,305,465
Capital
Markets
........................
8,783,698
8,996,012
—
17,779,710
Consumer
Finance
.....................
10,868,534
—
—
10,868,534
Financial
Services
......................
34,476,711
—
—
34,476,711
Household
Durables
....................
10,789,393
—
—
10,789,393
Insurance
............................
66,102,381
30,744,695
—
96,847,076
Office
REITs
..........................
4,534,474
—
—
4,534,474
Professional
Services
...................
6,282,523
—
—
6,282,523
Real
Estate
Management
&
Development
....
6,192,169
4,860,179
—
11,052,348
Trading
Companies
&
Distributors
..........
8,216,122
—
—
8,216,122
Short
Term
Investments
...................
—
16,400,000
—
16,400,000
Total
Investments
in
Securities
...........
$226,102,105
$104,450,251
c
$—
$330,552,356
Other
Financial
Instruments:
Forward
exchange
contracts
...............
$
—
$
274,994
$
—
$
274,994
Total
Other
Financial
Instruments
.........
$—
$274,994
$—
$274,994
Liabilities:
Other
Financial
Instruments:
Forward
exchange
contracts
................
$
—
$
131,497
$
—
$
131,497
Futures
contracts
........................
148,426
—
—
148,426
Total
Other
Financial
Instruments
.........
$148,426
$131,497
$—
$279,923
Franklin
Mutual
Global
Discovery
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
—
146,990,349
—
146,990,349
Automobile
Components
.................
—
179,563,045
121,809
179,684,854
Automobiles
..........................
183,854,466
—
—
183,854,466
Banks
...............................
186,660,605
311,501,575
—
498,162,180
Biotechnology
.........................
71,527,650
—
—
71,527,650
Building
Products
......................
155,520,487
—
—
155,520,487
Capital
Markets
........................
143,492,413
—
—
143,492,413
Chemicals
...........................
—
194,370,612
—
194,370,612
Consumer
Finance
.....................
197,881,719
—
—
197,881,719
Consumer
Staples
Distribution
&
Retail
......
—
110,809,286
—
110,809,286
Diversified
Telecommunication
Services
.....
—
234,221,852
—
234,221,852
Electrical
Equipment
....................
—
150,320,907
—
150,320,907
Energy
Equipment
&
Services
.............
173,808,664
—
—
173,808,664
Entertainment
.........................
315,991,345
—
—
315,991,345
Financial
Services
......................
489,061,066
—
—
489,061,066
14.
Fair
Value
Measurements
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
125
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Mutual
Global
Discovery
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Food
Products
........................
$
159,868,250
$
171,975,395
$
—
$
331,843,645
Health
Care
Equipment
&
Supplies
.........
199,454,083
—
—
199,454,083
Health
Care
Providers
&
Services
..........
485,196,678
164,772,680
—
649,969,358
Household
Durables
....................
130,593,084
—
—
130,593,084
Household
Products
....................
—
140,468,692
—
140,468,692
Industrial
Conglomerates
................
—
136,041,530
—
136,041,530
Insurance
............................
313,070,718
172,667,863
—
485,738,581
Interactive
Media
&
Services
..............
136,471,043
—
—
136,471,043
IT
Services
...........................
—
173,901,505
—
173,901,505
Machinery
............................
149,443,046
—
—
149,443,046
Media
...............................
187,425,194
—
—
187,425,194
Metals
&
Mining
.......................
—
133,169,488
—
133,169,488
Oil,
Gas
&
Consumable
Fuels
.............
165,026,225
356,582,550
—
521,608,775
Personal
Care
Products
.................
—
167,633,022
—
167,633,022
Pharmaceuticals
.......................
493,450,073
171,088,367
—
664,538,440
Real
Estate
Management
&
Development
....
166,689,798
—
—
166,689,798
Semiconductors
&
Semiconductor
Equipment
.
79,086,944
159,610,453
—
238,697,397
Software
.............................
135,463,458
—
—
135,463,458
Technology
Hardware,
Storage
&
Peripherals
.
—
172,063,986
—
172,063,986
Tobacco
.............................
—
169,202,840
—
169,202,840
Trading
Companies
&
Distributors
..........
296,589,942
—
—
296,589,942
Corporate
Bonds
........................
—
44,970,965
—
44,970,965
Senior
Floating
Rate
Interests
...............
—
75,083,412
—
75,083,412
Companies
in
Liquidation
..................
—
—
—
a
—
Short
Term
Investments
...................
—
232,469,410
—
232,469,410
Total
Investments
in
Securities
...........
$5,015,626,951
$3,969,479,784
d
$121,809
$8,985,228,544
Other
Financial
Instruments:
Forward
exchange
contracts
...............
$
—
$
14,805,961
$
—
$
14,805,961
Total
Other
Financial
Instruments
.........
$—
$14,805,961
$—
$14,805,961
Liabilities:
Other
Financial
Instruments:
Forward
exchange
contracts
................
$
—
$
563,696
$
—
$
563,696
Futures
contracts
........................
3,674,731
—
—
3,674,731
Total
Other
Financial
Instruments
.........
$3,674,731
$563,696
$—
$4,238,427
Franklin
Mutual
International
Value
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
—
33,695,993
—
33,695,993
Automobile
Components
.................
—
33,974,746
—
33,974,746
Banks
...............................
—
88,878,443
—
88,878,443
Beverages
...........................
—
27,106,141
—
27,106,141
Capital
Markets
........................
—
14,216,196
—
14,216,196
Chemicals
...........................
—
22,137,566
—
22,137,566
Consumer
Staples
Distribution
&
Retail
......
—
19,268,977
—
19,268,977
Diversified
Telecommunication
Services
.....
—
51,891,889
—
51,891,889
Electrical
Equipment
....................
—
8,974,183
—
8,974,183
Electronic
Equipment,
Instruments
&
Components
..........................
—
17,932,096
—
17,932,096
Food
Products
........................
—
11,113,852
—
11,113,852
Health
Care
Equipment
&
Supplies
.........
—
15,651,087
—
15,651,087
Health
Care
Providers
&
Services
..........
—
16,915,874
—
16,915,874
14.
Fair
Value
Measurements
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
126
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Mutual
International
Value
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Household
Durables
....................
$
—
$
18,636,702
$
—
$
18,636,702
Household
Products
....................
—
7,251,382
—
7,251,382
Independent
Power
and
Renewable
Electricity
Producers
............................
—
14,168,174
—
14,168,174
Industrial
Conglomerates
................
—
16,051,596
—
16,051,596
Insurance
............................
—
38,956,729
—
38,956,729
Interactive
Media
&
Services
..............
—
11,277,692
—
11,277,692
IT
Services
...........................
—
15,820,262
—
15,820,262
Machinery
............................
—
21,540,541
—
21,540,541
Metals
&
Mining
.......................
—
23,268,470
—
23,268,470
Oil,
Gas
&
Consumable
Fuels
.............
12,287,440
50,587,622
—
62,875,062
Personal
Care
Products
.................
—
12,570,804
—
12,570,804
Pharmaceuticals
.......................
—
37,452,229
—
37,452,229
Semiconductors
&
Semiconductor
Equipment
.
—
16,323,002
—
16,323,002
Software
.............................
15,447,868
—
—
15,447,868
Technology
Hardware,
Storage
&
Peripherals
.
—
25,786,379
—
25,786,379
Textiles,
Apparel
&
Luxury
Goods
..........
—
21,834,968
—
21,834,968
Tobacco
.............................
—
13,487,305
—
13,487,305
Trading
Companies
&
Distributors
..........
16,058,364
—
—
16,058,364
Short
Term
Investments
...................
—
29,894,373
—
29,894,373
Total
Investments
in
Securities
...........
$43,793,672
$736,665,273
e
$—
$780,458,945
Liabilities:
Other
Financial
Instruments:
Futures
contracts
........................
$
8,677
$
—
$
—
$
8,677
..............................................................
Total
Other
Financial
Instruments
.........
$8,677
$—
$—
$8,677
Franklin
Mutual
Quest
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Air
Freight
&
Logistics
...................
28,328,849
—
—
28,328,849
Automobile
Components
.................
—
28,253,140
81,270
28,334,410
Automobiles
..........................
29,327,271
—
—
29,327,271
Banks
...............................
68,147,289
—
—
68,147,289
Beverages
...........................
—
26,749,945
—
26,749,945
Biotechnology
.........................
68,012,134
—
—
68,012,134
Broadline
Retail
.......................
13,002,511
—
—
13,002,511
Chemicals
...........................
29,928,330
34,468,465
—
64,396,795
Communications
Equipment
..............
—
—
17,315,589
a
17,315,589
Containers
&
Packaging
.................
30,292,313
—
—
30,292,313
Diversified
Telecommunication
Services
.....
—
28,444,592
15,443,468
43,888,060
Electric
Utilities
........................
52,085,095
—
—
52,085,095
Energy
Equipment
&
Services
.............
58,480,515
—
—
58,480,515
Entertainment
.........................
97,716,996
—
—
97,716,996
Financial
Services
......................
93,416,835
—
—
93,416,835
Food
Products
........................
—
12,946,824
—
12,946,824
Health
Care
Equipment
&
Supplies
.........
6,320,118
—
—
6,320,118
Health
Care
Providers
&
Services
..........
152,044,722
15,229,573
—
167,274,295
Household
Products
....................
—
24,516,767
—
24,516,767
Independent
Power
and
Renewable
Electricity
Producers
............................
9,086,975
—
—
9,086,975
Insurance
............................
120,657,951
101,518,285
—
222,176,236
Media
...............................
86,890,704
—
48
86,890,752
14.
Fair
Value
Measurements
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
127
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Mutual
Quest
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Metals
&
Mining
.......................
$
—
$
29,553,409
$
—
$
29,553,409
Office
REITs
..........................
9,622,309
—
—
9,622,309
Oil,
Gas
&
Consumable
Fuels
.............
84,641,423
47,169,722
—
131,811,145
Passenger
Airlines
.....................
8,980,669
—
—
8,980,669
Personal
Care
Products
.................
—
15,429,748
—
15,429,748
Pharmaceuticals
.......................
96,110,249
25,467,906
—
121,578,155
Professional
Services
...................
37,353,476
—
—
37,353,476
Real
Estate
Management
&
Development
....
5,795,953
12,487,530
—
18,283,483
Semiconductors
&
Semiconductor
Equipment
.
12,527,178
—
—
12,527,178
Software
.............................
81,802,834
—
—
81,802,834
Specialized
REITs
......................
14,975,675
—
—
14,975,675
Specialty
Retail
........................
—
—
—
a
—
Tobacco
.............................
—
75,856,449
—
75,856,449
Wireless
Telecommunication
Services
.......
2,401,557
—
—
2,401,557
Rights
.................................
—
652,279
—
652,279
Warrants
:
Media
...............................
—
—
798,156
798,156
Wireless
Telecommunication
Services
.......
841,242
—
—
841,242
Convertible
Bonds
.......................
—
7,120,000
—
7,120,000
Corporate
Bonds
........................
—
278,004,404
—
278,004,404
Senior
Floating
Rate
Interests
...............
—
114,678,430
107,616,818
222,295,248
Companies
in
Liquidation
..................
—
—
—
a
—
Options
purchased
.......................
132,000
—
—
132,000
Short
Term
Investments
...................
100,000
359,707,183
—
359,807,183
Total
Investments
in
Securities
...........
$1,299,023,173
$1,238,254,651
f
$141,255,349
$2,678,533,173
Other
Financial
Instruments:
Forward
exchange
contracts
...............
$
—
$
232,157
$
—
$
232,157
Total
Other
Financial
Instruments
.........
$—
$232,157
$—
$232,157
Liabilities:
Other
Financial
Instruments:
Options
written
..........................
$
4,421,750
$
—
$
—
$
4,421,750
Securities
Sold
Short
.....................
89,677,600
—
—
89,677,600
Forward
exchange
contracts
................
—
516,079
—
516,079
Futures
contracts
........................
420,417
—
—
420,417
Total
Other
Financial
Instruments
.........
$94,519,767
$516,079
$—
$95,035,846
Franklin
Mutual
Shares
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Air
Freight
&
Logistics
...................
102,371,468
—
—
102,371,468
Automobile
Components
.................
—
—
230,733
230,733
Automobiles
..........................
137,165,709
—
—
137,165,709
Banks
...............................
347,217,750
—
—
347,217,750
Biotechnology
.........................
56,850,440
—
—
56,850,440
Building
Products
......................
141,176,949
—
—
141,176,949
Capital
Markets
........................
118,567,832
—
—
118,567,832
Consumer
Finance
.....................
149,632,604
—
—
149,632,604
Containers
&
Packaging
.................
111,109,022
—
—
111,109,022
Diversified
Telecommunication
Services
.....
—
—
20,202,751
20,202,751
Electronic
Equipment,
Instruments
&
Components
..........................
156,263,320
—
—
156,263,320
Energy
Equipment
&
Services
.............
161,589,573
—
—
161,589,573
14.
Fair
Value
Measurements
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
128
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Mutual
Shares
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Entertainment
.........................
$
280,738,809
$
—
$
—
$
280,738,809
Financial
Services
......................
451,656,646
—
—
451,656,646
Food
Products
........................
151,798,249
—
—
151,798,249
Health
Care
Equipment
&
Supplies
.........
152,477,313
—
—
152,477,313
Health
Care
Providers
&
Services
..........
370,816,927
—
—
370,816,927
Household
Durables
....................
129,322,640
—
—
129,322,640
Insurance
............................
238,639,939
—
—
238,639,939
Interactive
Media
&
Services
..............
207,975,164
—
—
207,975,164
Machinery
............................
149,748,837
—
—
149,748,837
Media
...............................
272,854,594
—
—
272,854,594
Metals
&
Mining
.......................
73,364,294
—
—
73,364,294
Oil,
Gas
&
Consumable
Fuels
.............
287,491,494
123,333,748
—
410,825,242
Personal
Care
Products
.................
53,411,148
—
—
53,411,148
Pharmaceuticals
.......................
404,352,265
124,351,419
—
528,703,684
Professional
Services
...................
255,049,138
—
—
255,049,138
Real
Estate
Management
&
Development
....
170,397,373
—
—
170,397,373
Retail
REITs
..........................
149,660,500
—
—
149,660,500
Software
.............................
235,967,209
—
—
235,967,209
Specialty
Retail
........................
—
—
—
a
—
Textiles,
Apparel
&
Luxury
Goods
..........
156,938,954
—
—
156,938,954
Tobacco
.............................
—
136,809,659
—
136,809,659
Trading
Companies
&
Distributors
..........
103,628,592
—
—
103,628,592
Wireless
Telecommunication
Services
.......
125,480,315
—
—
125,480,315
Corporate
Bonds
........................
—
136,038,155
—
136,038,155
Senior
Floating
Rate
Interests
...............
—
144,066,745
—
144,066,745
Companies
in
Liquidation
..................
—
—
—
a
—
Short
Term
Investments
...................
—
349,881,138
—
349,881,138
Total
Investments
in
Securities
...........
$5,903,715,067
$1,014,480,864
g
$20,433,484
$6,938,629,415
Other
Financial
Instruments:
Forward
exchange
contracts
...............
$
—
$
35,303
$
—
$
35,303
Total
Other
Financial
Instruments
.........
$—
$35,303
$—
$35,303
Liabilities:
Other
Financial
Instruments:
Forward
exchange
contracts
................
$
—
$
394,712
$
—
$
394,712
Futures
contracts
........................
212,705
—
—
212,705
Total
Other
Financial
Instruments
.........
$212,705
$394,712
$—
$607,417
a
Includes
financial
instruments
determined
to
have
no
value.
b
Includes
foreign
securities
valued
at
$1,158,603,527,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$88,050,251,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
d
Includes
foreign
securities
valued
at
$3,616,955,997,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
e
Includes
foreign
securities
valued
at
$706,770,900,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
f
Includes
foreign
securities
valued
at
$478,092,355,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
g
Includes
foreign
securities
valued
at
$384,494,826,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
14.
Fair
Value
Measurements
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
129
franklintempleton.com
Semiannual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
be
ginning
and/or
end
of
the
period
.
At 
June
3
0
,
202
3
,
the
reconciliation
is
as
follows:
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
June
30,
2023,
are
as
follows:
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Mutual
Quest
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Automobile
Components
$
89,695
$
—
$
—
$
—
$
—
$
—
$
—
$
(8,425)
$
81,270
$
(8,425)
Communications
Equipment
........
9,476,129
c
—
—
—
—
—
—
7,839,460
17,315,589
c
7,839,460
Diversified
Telecommunication
Services
..........
15,568,639
1,161,706
—
—
—
—
—
(1,286,877)
15,443,468
(1,286,877)
Media
...........
44
—
—
—
—
—
—
4
48
4
Specialty
Retail
.....
—
c
—
—
—
—
—
—
—
—
c
—
Warrants
:
Diversified
Telecommunication
Services
..........
877,909
—
(1,161,706)
—
—
—
—
283,797
—
—
Media
...........
792,276
—
—
—
—
—
—
5,880
798,156
5,880
Senior
Floating
Rate
Interests
:
Communications
Equipment
........
101,492,256
4,892,311
—
—
—
28,751
—
1,203,500
107,616,818
1,203,500
Companies
in
Liquidation
:
 —
c
 —
 —
 —
 —
 —
 —
 —
 —
c
 —
Total
Investments
in
Securities
............
$128,296,948
$6,054,017
$(1,161,706)
$—
$—
$28,751
$—
$8,037,339
$141,255,349
$7,753,542
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Includes
financial
instruments
determined
to
have
no
value.
14.
Fair
Value
Measurements
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
130
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Report
15.
New
Accounting
Pronouncements
In
March
2020,
the
FASB
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021
and
December
2022,
the
FASB
issued
ASU
No.
2021-01
and
ASU
No.
2022-06,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
LIBOR
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2024.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
16.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Mutual
Quest
Fund
Assets:
Investments
in
Securities:
Common
Stocks:
Communications
Equipment.
.
.
.
.
.
.
.
$17,315,589
Market
comparables
Discount
for
lack
of
marketability
11.9%
Decrease
EV/EBITDA
multiple
6.7x
Increase
EV/revenue
multiple
1.7x
Increase
Diversified
Telecommunication
Services
15,443,468
Market
comparables
Discount
for
lack
of
marketability
10.0%
Decrease
EV/EBITDA
multiple
4.0x
Increase
Senior
Floating
Rate
Interests:
Communications
Equipment
.
.
.
.
.
.
107,616,818
Discounted
cash
flow
Discount
rate
10.8%
-
11.3%
(11.2%)
Decrease
All
Other
Investments
.
.
.
.
.
.
.
.
.
879,474
c,d
Total
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$141,255,349
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
c
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
d
Includes
financial
instruments
determined
to
have
no
value.
Abbreviations
List
EBITDA
-
Earnings
before
interest,
taxes,
depreciation
and
amortization
EV
-
Enterprise
value
14.
Fair
Value
Measurements
(continued)
Franklin
Mutual
Series
Funds
Notes
to
Financial
Statements
(unaudited)
131
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Semiannual
Report
Abbreviations
Counterparty
BOFA
Bank
of
America
N.A.
HSBK
HSBC
Bank
plc
UBSW
UBS
AG
Currency
EUR
Euro
GBP
British
Pound
USD
United
States
Dollar
Index
EAFE
Europe,
Australasia
and
the
Far
East
MSCI
Morgan
Stanley
Capital
International
Selected
Portfolio
ADR
American
Depositary
Receipt
CME
Chicago
Mercantile
Exchange
FHLB
Federal
Home
Loan
Banks
LIBOR
London
Interbank
Offered
Rate
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
Franklin
Mutual
Series
Funds
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Information
132
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Board
Approval
of
Investment
Management
Agreements
FRANKLIN
MUTUAL
SERIES
FUNDS
(Each
series
of
such
Trust,
a
“Fund”)
The
Board
of
Trustees
(Board),
including
a
majority
of
trustees
that
are
not
“interested
persons”
as
such
term
is
defined
in
section
2(a)(19)
of
the
Investment
Company
Act
of
1940
(hereinafter
referred
to
as
“independent
trustees”),
at
an
in
person
meeting
held
on
May
23,
2023,
unanimously
approved
the
renewal
of
each
Fund’s
investment
management
agreement.
Prior
to
a
meeting
of
all
of
the
trustees
for
the
purpose
of
considering
such
renewal,
the
independent
trustees
participated
in
two
other
meetings
held
in
connection
with
the
renewal
process.
Throughout
the
process,
the
independent
trustees
received
assistance
and
advice
from
and
met
separately
with
independent
counsel.
The
independent
trustees
met
with
and
interviewed
officers
of
the
investment
manager
(including
portfolio
managers),
the
transfer
agent
and
shareholder
services
group
and
the
distributor.
In
approving
the
renewal
of
the
investment
management
agreement
for
the
Funds,
the
Board,
including
the
independent
trustees,
determined
that
the
investment
management
fee
structure
was
fair
and
reasonable
and
that
continuance
of
the
agreement
was
in
the
best
interests
of
each
Fund
and
its
shareholders.
In
reaching
their
decision
on
the
investment
management
agreement,
the
trustees
took
into
account
information
furnished
throughout
the
year
at
Board
meetings,
as
well
as
information
specifically
requested
and
furnished
for
the
renewal
process,
which
culminated
in
the
meetings
referred
to
above
for
the
specific
purpose
of
considering
such
agreement.
Information
furnished
throughout
the
year
included,
among
others,
reports
on
each
Fund’s
investment
performance,
expenses,
portfolio
composition,
portfolio
brokerage
execution,
client
commission
arrangements,
derivatives,
securities
lending,
asset
segregation,
portfolio
turnover,
Rule
12b-1
plan,
distribution,
shareholder
servicing,
legal
and
compliance
matters,
pricing
of
securities,
sales
and
redemptions,
and
marketing
support
payments
made
to
financial
intermediaries,
as
well
as
a
third-party
survey
of
transfer
agent
fees
charged
to
funds
within
the
Franklin
Templeton
(FT)
complex
in
comparison
with
those
charged
to
other
fund
complexes
deemed
comparable.
Also,
related
financial
statements
and
other
information
about
the
scope
and
quality
of
services
provided
by
the
investment
manager
and
its
affiliates
and
enhancements
to
such
services
over
the
past
year
were
provided.
In
addition,
the
trustees
received
periodic
reports
throughout
the
year
and
during
the
renewal
process
relating
to
compliance
with
the
Funds’
investment
policies
and
restrictions.
During
the
renewal
process,
the
independent
trustees
considered
the
investment
manager’s
methods
of
operation
within
the
FT
group
and
its
activities
on
behalf
of
other
clients.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
FT
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
information
obtained
by
the
trustees
during
the
renewal
process
also
included
a
special
report
prepared
by
Broadridge
Financial
Solutions,
Inc.,
an
independent
third-party
analyst
that
utilizes
data
from
Lipper,
Inc.
(“Lipper”),
comparing
each
Fund’s
investment
performance
and
expenses
with
those
of
other
mutual
funds
deemed
comparable
to
such
Fund
as
selected
by
Lipper
(Broadridge
Section
15(c)
Report).
The
trustees
reviewed
the
Broadridge
Section
15(c)
Report
and
its
usefulness
in
the
renewal
process
with
respect
to
matters
such
as
comparative
fees,
expenses,
expense
ratios,
performance
and
volatility.
They
concluded
that
the
report
continues
to
be
a
reliable
resource
in
the
performance
of
their
duties.
In
addition,
the
trustees
received
a
Profitability
Study
(Profitability
Study)
prepared
by
management
discussing
the
profitability
to
FT
from
its
overall
U.S.
fund
operations,
as
well
as
on
an
individual
fund-by-fund
basis.
Over
the
past
year,
the
Board
and
counsel
to
the
independent
trustees
continued
to
receive
reports
on
management’s
handling
of
recent
regulatory
inquiries
and
pending
legal
actions
against
the
investment
manager
and
its
affiliates.
The
independent
trustees
were
satisfied
with
the
actions
taken
to
date
by
management
in
response
to
such
regulatory
and
legal
matters.
The
trustees
reviewed
the
personnel,
operations,
financial
condition,
and
investment
management
capabilities,
methodologies
and
resources
of
the
investment
manager.
As
part
of
this
review,
particular
attention
was
given
to
management’s
diligent
risk
management
program,
including
continual
monitoring
and
management
of
cybersecurity,
liquidity
and
counterparty
credit
risk,
and
attention
given
to
derivatives
and
other
complex
instruments
that
are
held
and
expected
to
be
held
by
each
Fund
and
how
such
instruments
are
used
to
carry
out
each
Fund’s
investment
goal(s).
The
Board
also
took
into
account,
among
other
things,
management’s
efforts
in
establishing
a
global
credit
facility
for
the
benefit
of
the
Fund
and
other
accounts
managed
by
FT
to
provide
a
source
of
cash
for
temporary
and
emergency
Franklin
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Series
Funds
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purposes
or
to
meet
unusual
redemption
requests
as
well
as
the
strong
financial
position
of
the
investment
manager’s
parent
company
and
its
commitment
to
the
mutual
fund
business.
The
Board
noted
management’s
continuing
efforts
and
expenditures
in
establishing
effective
business
continuity
plans
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
such
as
cybersecurity
and
liquidity
risk
management.
The
Board
also
recognized
management’s
commitment
to
facilitating
Board
oversight
of
particular
areas,
including
derivatives
and
payments
to
intermediaries,
by
enhanced
reporting.
In
addition
to
the
above
and
other
matters
considered
by
the
trustees
throughout
the
course
of
the
year,
the
following
discussion
relates
to
certain
primary
factors
relevant
to
the
Board’s
decision.
This
discussion
of
the
information
and
factors
considered
by
the
Board
(including
the
information
and
factors
discussed
above)
is
not
intended
to
be
exhaustive,
but
rather
summarizes
certain
factors
considered
by
the
Board.
In
view
of
the
wide
variety
of
factors
considered,
the
Board
did
not,
unless
otherwise
noted,
find
it
practicable
to
quantify
or
otherwise
assign
relative
weights
to
the
foregoing
factors.
In
addition,
individual
trustees
may
have
assigned
different
weights
to
various
factors.
NATURE,
EXTENT
AND
QUALITY
OF
SERVICES.
The
trustees
reviewed
the
nature,
extent
and
quality
of
the
services
provided,
and
to
be
provided,
by
the
investment
manager.
The
trustees
cited
the
investment
manager’s
ability
to
implement
each
Fund’s
disciplined
value
investment
approach
and
its
long-term
relationship
with
each
Fund
as
reasons
that
shareholders
choose
to
invest,
and
remain
invested,
in
the
Funds.
The
trustees
reviewed
each
Fund’s
portfolio
management
team,
including
its
performance,
staffing,
skills
and
compensation
program.
With
respect
to
portfolio
manager
compensation,
management
assured
the
trustees
that
each
Fund’s
long-term
performance
is
a
significant
component
of
incentive-based
compensation
and
noted
that
a
portion
of
a
portfolio
manager’s
incentive-
based
compensation
is
paid
in
shares
of
pre-
designated
funds
from
the
portfolio
manager’s
fund
management
area.
The
trustees
noted
that
the
portfolio
manager
compensation
program
aligned
the
interests
of
the
portfolio
managers
with
that
of
shareholders
of
the
Funds.
The
trustees
discussed
with
management
various
other
products,
portfolios
and
entities
that
are
advised
by
the
investment
manager
and
the
allocation
of
assets
and
expenses
among
and
within
them,
as
well
as
their
relative
fees
and
reasons
for
differences
with
respect
thereto
and
any
potential
conflicts.
During
regular
Board
meetings
and
the
aforementioned
meetings
of
the
independent
trustees,
the
trustees
received
reports
and
presentations
on
the
investment
manager’s
best
execution
trading
policies.
The
trustees
considered
periodic
reports
provided
to
them
showing
that
the
investment
manager
complied
with
the
investment
policies
and
restrictions
of
each
Fund
as
well
as
other
reports
periodically
furnished
to
the
Board
covering
matters
such
as
the
compliance
of
portfolio
managers
and
other
management
personnel
with
the
code
of
ethics
covering
the
investment
management
personnel,
the
adherence
to
fair
value
pricing
procedures
established
by
the
Board
and
the
accuracy
of
net
asset
value
calculations.
The
Board
noted
the
extent
of
the
benefits
provided
to
the
Funds’
shareholders
from
being
part
of
the
FT
group
of
funds,
including
the
right
to
exchange
investments
between
funds
(same
class)
without
a
sales
charge,
the
ability
to
reinvest
dividends
from
any
of
the
Funds
into
other
funds
and
the
right
to
combine
holdings
of
other
funds
to
obtain
reduced
sales
charges.
The
Board
considered
the
investment
manager’s
significant
efforts
in
developing
and
implementing
compliance
procedures
established
in
accordance
with
SEC
and
other
requirements.
The
Board
considered
the
nature,
extent
and
quality
of
the
services
to
be
provided
under
each
Fund’s
other
service
agreements
to
determine
that,
on
an
overall
basis,
Fund
shareholders
were
well
served.
In
this
connection,
the
Board
also
took
into
account
transfer
agent
and
shareholder
services
provided
to
the
Funds’
shareholders
by
an
affiliate
of
the
investment
manager,
and
favorable
periodic
reports
on
shareholder
services
conducted
by
independent
third
parties.
While
such
considerations
directly
affected
the
trustees’
decision
in
renewing
each
Fund’s
transfer
agent
and
shareholder
services
agreement,
the
Board
also
considered
these
commitments
as
incidental
benefits
to
Fund
shareholders
deriving
from
the
investment
management
relationship.
Based
on
their
review,
the
trustees
were
satisfied
with
the
nature
and
quality
of
the
overall
services
provided,
and
to
be
provided,
by
the
investment
manager
and
its
affiliates
to
each
Fund
and
its
shareholders
and
were
confident
in
the
abilities
of
the
management
team
to
continue
the
disciplined
value
investment
approach
of
each
Fund
and
to
provide
quality
services
to
such
Fund
and
its
shareholders.
INVESTMENT
PERFORMANCE.
The
trustees
reviewed
and
placed
significant
emphasis
on
the
investment
performance
of
the
Funds
over
the
one-,
three-,
five-
and
10-year
periods
ended
December
31,
2022.
They
considered
the
history
of
performance
of
each
Fund
relative
to
various
benchmarks.
As
part
of
their
review,
they
inquired
of
management
regarding
benchmarks,
style
drift
and
restrictions
on
permitted
investments.
Consideration
was
also
given
to
performance
in
the
context
of
available
levels
of
cash
during
the
periods.
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The
trustees
had
meetings
during
the
year,
including
the
meetings
referred
to
above
held
in
connection
with
the
renewal
process,
with
each
Fund’s
portfolio
managers
to
discuss
performance
and
the
management
of
such
Fund.
In
addition
to
the
materials
provided
by
management
in
connection
with
the
renewal
process,
the
independent
trustees
requested
throughout
the
year
(and
received)
additional
presentations
from
the
investment
manager
and
senior
management
of
FT
regarding
the
performance
of
the
investment
manager
and
the
Funds.
As
part
of
these
presentations,
the
investment
manager
and
senior
management
of
FT
reviewed
enhancements
that
have
been
made,
and
are
being
made,
to
the
investment
manager’s
investment
process.
Particular
attention
in
assessing
performance
was
given
to
the
Broadridge
Section
15(c)
Report.
That
report
showed
the
investment
performance
of
each
Fund
(Class
A
shares)
in
comparison
to
other
funds
determined
comparable
by
Lipper.
Franklin
Mutual
Shares
Fund.
The
comparable
funds
to
the
Fund,
as
chosen
by
Lipper,
included
all
retail
and
institutional
multi-cap
value
funds.
The
Fund
had
total
returns
in
the
second-lowest
performing
quintile
for
the
one-year
period
ended
December
31,
2022,
and
had
annualized
total
returns
for
the
three-
and
five-year
periods
in
the
lowest
performing
quintile.
The
trustees
noted
that
the
Fund’s
total
return
on
an
annualized
basis
for
the
10-year
period
ended
December
31,
2022
was
also
in
the
lowest
performing
quintile.
The
trustees
also
compared
Fund
performance
to
other
industry
benchmarks,
including
measures
of
risk-
adjusted
performance
of
a
fund,
as
part
of
their
evaluation
of
investment
performance.
The
trustees
discussed
with
management
the
reasons
for
the
relative
underperformance
for
the
one-,
three-,
five-
and
10-year
periods
ended
December
31,
2022.
While
disappointed
with
the
relative
underperformance
of
the
Fund
(despite
the
moderate
improvement
for
the
one-year
period
ended
December
31,
2022)
the
Board
did
not
believe
that
any
changes
with
respect
to
the
Fund
were
warranted
at
the
time,
particularly
in
light
of
the
continued
enhancements
to
the
investment
manager’s
personnel
and
investment
process.
The
Board
noted
that
it
would
continue
to
monitor
future
performance.
Franklin
Mutual
Global
Discovery
Fund.
The
comparable
funds
to
the
Fund,
as
chosen
by
Lipper,
included
all
retail
and
institutional
global
multi-cap
value
funds.
The
Fund
had
total
returns
in
the
best
performing
quintile
for
the
one-year
period
ended
December
31,
2022,
and
had
annualized
total
returns
for
the
three-
and
five-year
periods
in
the
second-
lowest
performing
quintile.
The
trustees
noted
that
the
Fund’s
total
return
on
an
annualized
basis
for
the
10-year
period
ended
December
31,
2022
was
also
in
the
second-
lowest
performing
quintile.
The
trustees
also
compared
Fund
performance
to
other
industry
benchmarks,
including
measures
of
risk-adjusted
performance
of
a
fund,
as
part
of
their
evaluation
of
investment
performance.
The
trustees
discussed
with
management
the
reasons
for
the
relative
underperformance
for
the
three-,
five-
and
10-year
periods
ended
December
31,
2022.
The
Board
was
encouraged
by
improved
performance
in
2022
and
did
not
believe
that
any
changes
with
respect
to
the
Fund
were
warranted
at
the
time,
particularly
in
light
of
the
continued
enhancements
to
the
investment
manager’s
personnel
and
investment
process.
The
Board
noted
that
it
would
continue
to
monitor
future
performance.
Franklin
Mutual
International
Value
Fund
(Formerly,
Franklin
Mutual
European
Fund).
The
comparable
funds
to
the
Fund,
as
chosen
by
Lipper,
included
all
retail
and
institutional
international
multi-cap
value
funds.
The
Fund
had
total
returns
in
the
best
performing
quintile
for
the
one-
year
period
ended
December
31,
2022,
and
had
annualized
total
returns
for
the
three-
and
five-year
periods
in
the
best
performing
quintile.
The
trustees
noted
that
the
Fund’s
total
return
on
an
annualized
basis
for
the
10-year
period
ended
December
31,
2022
was
also
in
the
best
performing
quintile.
The
Board
was
satisfied
with
such
comparative
performance;
however,
the
Board
noted
that,
due
to
changes
in
the
Fund,
prior
performance
comparisons
for
International
Value
may
not
reflect
actual
improvements
to
relative
Fund
performance,
but
may
be
reflective
of
changes
in
its
benchmark
and
peer
group.
The
trustees
also
compared
Fund
performance
to
other
industry
benchmarks,
including
measures
of
risk-adjusted
performance
of
a
fund,
as
part
of
their
evaluation
of
investment
performance.
The
trustees
concluded
that
the
Fund
had
performed
well
in
comparison
to
its
various
benchmarks
and
in
the
context
of
the
Fund’s
goals.
Franklin
Mutual
Financial
Services
Fund.
The
comparable
funds
to
the
Fund,
as
chosen
by
Lipper,
included
all
retail
and
institutional
global
financial
services
funds.
The
Fund
had
total
returns
in
the
best
performing
quintile
for
the
one-
year
period
ended
December
31,
2022,
had
annualized
total
returns
for
the
three-year
period
in
the
middle
performing
quintile,
and
had
annualized
total
returns
for
the
five-year
period
in
the
second-lowest
performing
quintile.
The
trustees
noted
that
the
Fund’s
total
return
on
an
annualized
basis
for
the
10-year
period
ended
December
31,
2022
was
in
the
middle
performing
quintile.
The
trustees
also
compared
Fund
performance
to
other
industry
benchmarks,
including
measures
of
risk-adjusted
performance
of
a
fund,
as
part
of
their
evaluation
of
investment
performance.
The
trustees
discussed
with
management
the
reasons
for
the
relative
Franklin
Mutual
Series
Funds
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underperformance
for
the
five-year
period
ended
December
31,
2022.
Taking
into
account
such
discussions,
the
Board
concluded
that
the
Fund
had
performed
in
an
acceptable
manner
in
the
context
of
the
Fund’s
goals.
Franklin
Mutual
Quest
Fund.
The
comparable
funds
to
the
Fund,
as
chosen
by
Lipper,
included
all
retail
and
institutional
flexible
portfolio
funds.
The
Fund
had
total
returns
in
the
best
performing
quintile
for
the
one-year
period
ended
December
31,
2022,
had
annualized
total
returns
for
the
three-year
period
in
the
second-lowest
performing
quintile,
and
had
annualized
total
returns
for
the
five-year
period
in
the
lowest
performing
quintile.
The
trustees
noted
that
the
Fund’s
total
return
on
an
annualized
basis
for
the
10-year
period
ended
December
31,
2022
was
in
the
middle
performing
quintile.
The
trustees
also
compared
Fund
performance
to
other
industry
benchmarks,
including
measures
of
risk-
adjusted
performance
of
a
fund,
as
part
of
their
evaluation
of
investment
performance.
The
trustees
discussed
with
management
the
reasons
for
the
relative
underperformance
for
the
three-
and
five-year
periods
ended
December
31,
2022.
The
Board
was
encouraged
by
improved
performance
in
2022
and
did
not
believe
that
any
changes
with
respect
to
the
Fund
were
warranted
at
the
time,
particularly
in
light
of
the
continued
enhancements
to
the
investment
manager’s
personnel
and
investment
process.
The
Board
noted
that
it
would
continue
to
monitor
future
performance.
Franklin
Mutual
Beacon
Fund.
The
comparable
funds
to
the
Fund,
as
chosen
by
Lipper,
included
all
retail
and
institutional
global
multi-cap
value
funds.
The
Fund
had
total
returns
in
the
second-lowest
performing
quintile
for
the
one-
year
period
ended
December
31,
2022,
had
annualized
total
returns
for
the
three-year
period
in
the
lowest
performing
quintile,
and
had
annualized
total
returns
in
the
five-year
period
in
the
middle
performing
quintile.
The
trustees
noted
that
the
Fund’s
total
return
on
an
annualized
basis
for
the
10-year
period
ended
December
31,
2022
was
also
in
the
middle
performing
quintile.
The
trustees
also
compared
Fund
performance
to
other
industry
benchmarks,
including
measures
of
risk-adjusted
performance
of
a
fund,
as
part
of
their
evaluation
of
investment
performance.
The
trustees
discussed
with
management
the
reasons
for
the
relative
underperformance
for
the
one-
and
three-year
periods
ended
December
31,
2022.
While
disappointed
with
the
relative
underperformance
of
the
Fund,
the
Board
did
not
believe
that
any
changes
with
respect
to
the
Fund
were
warranted
at
the
time,
particularly
in
light
of
the
continued
enhancements
to
the
investment
manager’s
personnel
and
investment
process.
The
Board
noted
that
it
would
continue
to
monitor
future
performance.
COMPARATIVE
EXPENSES
AND
MANAGEMENT
PROFITABILITY.
The
trustees
considered
the
cost
of
the
services
provided
and
to
be
provided
and
the
profits
realized
by
the
investment
manager
and
its
affiliates
from
their
respective
relationships
with
each
Fund.
As
part
of
the
renewal
process,
the
trustees
explored
with
management
the
trends
in
expense
ratios
over
the
past
three
fiscal
years
and
the
reasons
for
any
increases
in
each
Fund’s
expense
ratios
(or
components
thereof).
In
considering
the
appropriateness
of
the
management
fee
and
other
expenses
charged
to
each
Fund,
the
Board
took
into
account
various
factors
including
investment
performance
and
matters
relating
to
Funds’
operations,
including,
but
not
limited
to,
the
quality
and
experience
of
its
portfolio
managers
and
research
staff.
Consideration
was
also
given
to
a
comparative
analysis
in
the
Broadridge
Section
15(c)
Report
of
the
investment
management
fee
and
total
expense
ratio
of
each
Fund
in
comparison
with
those
of
a
group
of
other
funds
selected
by
Lipper
as
its
appropriate
Lipper
expense
group.
Lipper
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Lipper
to
be
an
appropriate
measure
of
comparative
expenses.
In
reviewing
comparative
costs,
emphasis
was
given
to
each
Fund’s
contractual
management
fee
in
comparison
with
the
contractual
management
fee
that
would
have
been
charged
by
other
funds
within
its
Lipper
expense
group
assuming
they
were
similar
in
size
to
such
Fund,
as
well
as
the
actual
total
expenses
of
each
Fund
in
comparison
with
those
of
its
Lipper
expense
group.
The
Lipper
contractual
management
fee
analysis
includes
administrative
charges
as
being
part
of
the
management
fee,
and
total
expenses,
for
comparative
consistency,
are
shown
by
Lipper
for
each
Fund’s
Class
A
shares.
Franklin
Mutual
Shares
Fund.
The
Fund’s
contractual
management
fee
rate
was
in
the
second-most
expensive
quintile
of
its
Lipper
expense
group
and
its
total
expenses
were
in
the
middle
quintile
of
such
group.
The
Board
was
satisfied
with
such
comparative
fees
and
expenses.
Franklin
Mutual
Global
Discovery
Fund.
The
Fund’s
contractual
management
fee
rate
was
in
the
most
expensive
quintile
of
its
Lipper
expense
group
and
its
total
expenses
were
in
the
second-most
expensive
quintile
of
such
group.
The
Board
noted
the
continuation
of
a
voluntary
one-year
total
expense
cap
on
operating
expenses
(e.g.,
excluding
Franklin
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Series
Funds
Shareholder
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136
franklintempleton.com
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12b-1
fees)
of
100
basis
points
that
was
implemented
in
2021.
The
Board
found
such
comparative
fees
and
expenses
to
be
acceptable
in
view
of
factors
relating
to
the
Fund’s
operations,
such
as
the
quality
and
experience
of
its
portfolio
managers.
Franklin
Mutual
International
Value
Fund.
The
Fund’s
contractual
management
fee
rate
was
in
the
second-least
expensive
quintile
of
its
Lipper
expense
group
and
its
total
expenses
were
in
the
middle
quintile
of
such
group.
The
Board
was
satisfied
with
such
comparative
fees
and
expenses.
Franklin
Mutual
Financial
Services
Fund.
The
Fund’s
contractual
management
fee
rate
was
in
the
most
expensive
quintile
of
its
Lipper
expense
group
and
its
total
expenses
were
in
the
middle
quintile
of
such
group.
The
Board
found
such
comparative
fees
and
expenses
to
be
acceptable
in
view
of
factors
relating
to
the
Fund’s
operations,
such
as
the
quality
and
experience
of
its
portfolio
managers.
Franklin
Mutual
Quest
Fund.
The
Fund’s
contractual
management
fee
rate
was
in
the
second-most
expensive
quintile
of
its
Lipper
expense
group
and
its
total
expenses
were
in
the
second-least
expensive
quintile
of
such
group.
The
Board
was
satisfied
with
such
comparative
fees
and
expenses.
Franklin
Mutual
Beacon
Fund.
The
Fund’s
contractual
management
fee
rate
was
in
the
middle
quintile
of
its
Lipper
expense
group
and
its
total
expenses
were
in
the
least
expensive
quintile
of
such
group.
The
Board
was
satisfied
with
such
comparative
fees
and
expenses.
The
trustees
also
reviewed
the
Profitability
Study
addressing
profitability
of
Franklin
Resources,
Inc.
(FRI),
from
its
overall
U.S.
fund
business,
as
well
as
profitability
to
each
Fund’s
investment
manager
and
its
affiliates,
from
providing
investment
management
and
other
services
to
each
Fund
during
the
12-month
period
ended
September
30,
2022,
the
most
recent
fiscal
year-end
of
FRI.
The
trustees
reviewed
the
basis
on
which
such
reports
are
prepared
and
the
cost
allocation
methodology
utilized
in
the
Profitability
Study,
it
being
recognized
that
allocation
methodologies
may
each
be
reasonable
while
producing
different
results.
In
this
respect,
the
Board
noted
that
the
reasonableness
of
the
cost
allocation
methodologies
was
reviewed
by
independent
accountants
on
an
every
other
year
basis.
The
independent
trustees
met
with
management
to
discuss
the
Profitability
Study.
This
included,
among
other
things,
a
comparison
of
investment
management
income
with
investment
management
expenses
of
each
Fund;
comparison
of
underwriting
revenues
and
expenses;
the
relative
relationship
of
investment
management
and
underwriting
expenses;
shareholder
servicing
profitability;
economies
of
scale;
and
the
relative
contribution
of
each
Fund
to
the
profitability
of
the
investment
manager
and
its
parent.
In
discussing
the
Profitability
Study
with
the
Board,
the
investment
manager
stated
its
belief
that
the
costs
incurred
in
establishing
the
infrastructure
necessary
to
operate
the
type
of
mutual
fund
operations
conducted
by
it
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability.
The
Board
also
took
into
account
management’s
expenditures
in
improving
shareholder
services
provided
to
each
Fund,
as
well
as
the
need
to
meet
additional
regulatory
and
compliance
requirements.
The
trustees
also
considered
the
extent
to
which
the
investment
manager
may
derive
ancillary
benefits
from
the
Funds’
operations,
including
those
derived
from
economies
of
scale,
discussed
below,
the
allocation
of
each
Fund’s
brokerage
and
the
use
of
commission
dollars
to
pay
for
research
and
other
similar
services.
Based
upon
their
consideration
of
all
these
factors,
the
trustees
determined
that
the
level
of
profits
realized
by
the
investment
manager
and
its
affiliates
in
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
quality
and
extent
of
services
provided.
ECONOMIES
OF
SCALE.
The
Board
considered
economies
of
scale
realized
by
the
investment
manager
and
its
affiliates
as
the
Funds
grow
larger
and
the
extent
to
which
they
are
shared
with
the
Funds’
shareholders,
as
for
example,
in
the
level
of
the
investment
management
fee
charged,
in
the
quality
and
efficiency
of
services
rendered
and
in
increased
capital
commitments
benefiting
the
Funds
directly
or
indirectly.
While
recognizing
that
any
precise
determination
is
inherently
subjective,
the
trustees
noted
that,
based
upon
the
Profitability
Study,
as
some
funds
increase
in
size,
at
some
point
economies
of
scale
may
result
in
the
investment
manager
realizing
a
larger
profit
margin
on
investment
management
services
provided
to
such
a
fund.
The
trustees
also
noted
that
benefits
of
economies
of
scale
will
be
shared
with
each
Fund
shareholders
due
to
the
decline
in
the
effective
investment
management
fee
rate
as
breakpoints
are
achieved
by
such
Fund.
The
trustees
noted
that
breakpoints
had
been
instituted
as
part
of
each
Fund’s
investment
management
fee
and
that
the
Board
regularly
evaluates
whether
additional
breakpoints
are
appropriate.
For
the
Franklin
Mutual
Shares
Fund
and
Franklin
Mutual
Global
Discovery
Fund,
the
trustees
assessed
the
savings
to
shareholders
resulting
from
such
Franklin
Mutual
Series
Funds
Shareholder
Information
137
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breakpoints
and
believed
they
were,
and
continue
to
be,
appropriate
and
they
agreed
to
continue
to
monitor
the
appropriateness
of
the
breakpoints.
For
the
Franklin
Mutual
International
Value
Fund,
Franklin
Mutual
Financial
Services
Fund,
Franklin
Mutual
Quest
Fund
and
Franklin
Mutual
Beacon
Fund,
the
trustees
believed
the
breakpoints
were,
and
continue
to
be,
appropriate
and
they
agreed
to
continue
to
monitor
the
appropriateness
of
the
breakpoints.
The
trustees
also
considered
the
effects
an
increase
in
assets
under
management
would
have
on
the
investment
management
fee
and
expense
ratio
of
each
Fund.
To
the
extent
further
economies
of
scale
may
be
realized
by
the
investment
manager
and
its
affiliates,
the
Board
believed
the
investment
management
fees
provide
a
sharing
of
benefits
with
each
Fund
and
its
shareholders.
Liquidity
Risk
Management
Program
Each
of
the
Franklin
Templeton
and
Legg
Mason
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
Franklin
Templeton
and
Legg
Mason
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Legal,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2023,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2022.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
Franklin
Mutual
Series
Funds
Shareholder
Information
138
franklintempleton.com
Semiannual
Report
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
each
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
MS
S
08/23
©
2023
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
Franklin
Mutual
Series
Funds
Investment
Manager
Distributor
Shareholder
Services
Franklin
Mutual
Advisers,
LLC
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
-
(Class
A,
C,
R
&
R6)
(800)
448-FUND
-
(Class
Z)
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial experts are Ann Torre Bates and David W. Niemiec and they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
Item 4. Principal Accountant Fees and Services. N/A
 
 
Item 5. Audit Committee
of Listed Registrants. 
N/A
 
 
Item 6. Schedule of Investments.               
N/A
 
 
Item 7
. Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies.  N/A
 
 
Item 8
. Portfolio Managers of Closed-End Management Investment Companies.                                  N/A
 
 
Item 9
. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.  N/A
 
 
Item 10
. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
Item 11. Controls and Procedures.
 
(a) Evaluation of Disclosure Controls and Procedures.
 
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
 
(b) Changes in Internal Controls
.
 
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
 
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                       N/A
 
 
Item 13. Exhibits.
 
(a)(1) Code of Ethics
 
 
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
 
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
 
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
FRANKLIN
MUTUAL SERIES FUNDS
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  August 28, 2023
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  August 28, 2023
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  August 28, 2023