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 811-05878
 
Franklin Value Investors Trust

(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA  94403-1906

(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: 650 312-2000
 
Date of fiscal year end: 10/31
 
Date of reporting period: 4/30/23
 
 
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
AND
SHAREHOLDER
LETTER
Franklin
Value
Investors
Trust
April
30,
2023
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Formerly,
Franklin
Mutual
U.S.
Value
Fund
Franklin
Small
Cap
Value
Fund
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
SHAREHOLDER
LETTER
Dear
Franklin
Fund
Shareholder:
The
past
six
months
were
eventful
and
volatile.
Continued
inflation,
hawkish
central
banks,
supply-chain
reinforcement,
the
war
in
Ukraine
and
concerns
over
economic
growth
remained
a
part
of
the
economic
landscape,
joined
by
new
elements,
such
as
turbulence
within
the
banking
industry.
However,
many
economic
indicators
remained
strong
during
the
period,
with
low
unemployment
and
a
tight
labor
market
supporting
consumer
spending.
Better-than-expected
first-quarter
2023
earnings
reports
also
worked
to
support
investor
sentiment
toward
the
end
of
the
six
months.
Although
the
year-over-year
growth
rate
of
price
increases
is
slowly
moderating,
inflation
remained
above
central
bank
targets
during
the
period.
In
response,
several
of
the
world’s
central
banks
continued
to
raise
rates,
including
the
U.S.
Federal
Reserve
(Fed),
the
European
Central
Bank
(ECB)
and
the
Bank
of
England
(BoE).
The
Bank
of
Japan
(BOJ)
increased
the
band
around
the
yield
target
on
its
10-year
government
bond.
Near
the
end
of
the
six
months,
the
Fed
indicated
it
might
slow
the
pace
of
its
rate
hikes,
lifting
investor
sentiment
in
the
wake
of
turbulence
brought
on
by
the
banking
industry.
The
banking
industry
stumbled
in
March
2023
when
a
number
of
mid-sized
U.S.
banks
collapsed,
and
a
Swiss
bank
was
forced
into
a
merger.
However,
quick
intervention
by
authorities
worked
to
calm
fears
and
prevent
a
widespread
bank
run.
We
continue
to
keep
an
eye
out
for
future
banking
industry
issues.
The
additional
stress
from
the
near
crisis
has
amplified
risk
aversion
across
the
capital
markets,
in
our
opinion.
Along
with
tighter
lending
standards,
we
think
this
might
work
to
increase
the
likelihood
of
a
recession.
Some
U.S.
large-cap
valuations
reflect
this
recession
risk.
Furthermore,
many
U.S.
small-cap
value
stocks
are
trading
well
below
their
52-week
highs,
and
valuations
of
profitable
small-cap
companies
in
the
Russell
2000
®
Value
Index
are
near
20-year
lows.
After
experiencing
supply-chain
shocks
caused
by
multiple
factors,
companies
are
investing
capital
to
diversify
their
manufacturing
operations
and
component
sourcing.
Some
of
this
new
fabrication
capacity
is
being
added
in
the
U.S.,
while
some
factories
will
be
added
in
locations
such
as
Mexico,
Indonesia
and
Vietnam.
Recent
U.S.
legislation
such
as
the
CHIPS
and
Science
Act
and
the
Infrastructure
Investment
and
Jobs
Act
incentivize
U.S.
reshoring
initiatives.
In
the
near
term,
we
anticipate
this
increased
construction
and
manufacturing
activity
will
help
offset
some
of
the
economic
cooling
caused
by
tighter
lending
standards.
In
the
longer
term,
we
think
increased
manufacturing
capacity
and
diversification
of
supply
sourcing
will
reduce
the
likelihood
of
future
supply
shocks.
Even
though
the
initial
shock
of
Russia’s
invasion
of
Ukraine
has
receded,
the
conflict
continues
to
affect
markets
by
stoking
inflationary
pressure
and
causing
many
European
countries
and
companies
to
explore
alternate
ways
to
fulfill
their
need
for
energy.
Thankfully,
European
energy
security
became
less
of
an
issue
near
the
end
of
2022.
A
warmer-
than-expected
winter
and
government
subsidies
combined
to
avert
the
energy
crunch
that
had
been
feared.
Not
all
progress
is
a
steady
march
forward.
In
the
near
term,
market
activity
will
likely
be
influenced
by
central
bank
activity,
geopolitical
events,
inflation
concerns,
supply-
chain
redevelopment
and
financial
institution
stability.
We
remain
focused
on
identifying
opportunities
to
acquire
stocks
at
attractive
valuations
based
upon
our
assessment
of
fundamental
value,
while
taking
advantage
of
volatility.
Our
process
of
finding
underappreciated
and
misunderstood
companies
with
identifiable
catalysts
to
unlock
shareholder
value
may
provide
meaningful
upside
potential
and
possible
downside
risk
management
during
turbulent
periods.
In
addition,
we
continue
to
focus
on
event-driven
situations
across
equity
and
fixed
income
with
catalysts
less
correlated
to
the
overall
markets.
While
unnerving,
volatility
remains
an
inherent
part
of
investing
in
risk
assets,
and
the
market
historically
rewards
investors
who
take
an
opportunistic
long-
term
perspective. 
On
the
following
pages,
the
portfolio
management
team
of
each
Fund
reviews
investment
decisions
made
during
this
period.
Please
remember
all
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin
Templeton,
welcome
your
questions
and
comments,
and
look
forward
to
continuing
to
serve
your
investment
needs
in
the
years
ahead.
franklintempleton.com
Semiannual
Report
2
Sincerely,
Christian
Correa,
CFA
President
and
Chief
Investment
Officer
Franklin
Value
Investors
Trust
This
letter
reflects
our
analysis
and
opinions
as
of
April
30,
2023,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
franklintempleton.com
Semiannual
Report
3
Economic
and
Market
Overview
4
Franklin
MicroCap
Value
Fund
5
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
10
Franklin
Small
Cap
Value
Fund
15
Financial
Highlights
and
Schedules
of
Investments
21
Financial
Statements
45
Notes
to
Financial
Statements
50
Shareholder
Information
65
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
Contents
Semiannual
Report
4
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Economic
and
Market
Overview
U.S.
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
posted
a
+8.63%
total
return
for
the
six
months
ended
April
30,
2023
1
.
Despite
continued
challenges
from
elevated
inflation,
higher
interest
rates
and
the
failure
of
several
U.S.
banks
in
March
2023,
stocks,
led
by
the
information
technology
sector,
gained
amid
signs
of
resilience
in
the
U.S.
economy.
U.S.
gross
domestic
product
growth
slowed
in
2023’s
first
quarter
as
the
pace
of
business
investment
eased,
inventories
declined,
and
the
housing
market
weakened.
Although
consumer
spending
continued
to
rise,
deteriorating
financial
conditions
kept
consumer
sentiment
at
historically
low
levels.
Meanwhile,
inflation,
which
remained
heightened
relative
to
recent
decades,
showed
signs
of
easing.
The
annual
inflation
rate,
as
measured
by
the
Consumer
Price
Index,
eased
to
5%
in
March
2023,
the
lowest
rate
since
May
2021,
as
energy
costs
declined
sharply,
used
car
prices
fell
and
food
prices
grew
at
a
slower
rate.
The
U.S.
unemployment
rate
remained
at
historically
low
levels
during
the
period,
briefly
hitting
a
54-year
low
of
3.4%
in
January
2023
before
rising
marginally
to
3.5%
in
March
2023.
Wage
growth
eased
toward
the
end
of
the
period,
raising
market
expectations
that
the
Fed
would
slow
its
rate
of
interest-rate
increases.
Rising
interest
rates
translated
to
higher
borrowing
costs
for
individuals
and
businesses,
which
discouraged
some
economic
activity.
Despite
interest-rate
increases,
bank
failures
contributed
to
lower
mortgage
rates
toward
the
end
of
the
period.
In
an
effort
to
control
inflation,
the
Fed
raised
the
federal
funds
target
rate
four
times
during
the
period
to
end
at
a
range
of
4.75%–5.00%.
The
Fed
stepped
down
the
pace
of
its
interest-rate
hikes
from
75
basis
points
(bps)
at
its
November
2022
meeting
to
50
bps
in
December
2022,
followed
by
25-bp
increases
in
February
and
March
2023.
At
its
March
2023
meeting,
the
Fed
said
it
would
continue
to
reduce
bond
holdings,
but
it
departed
from
previous
statements
by
softening
its
firm
outlook
on
future
rate
hikes.
Additionally,
Fed
Chair
Jerome
Powell
said
the
central
bank
most
likely
would
not
cut
rates
in
2023.
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
April
30,
2023.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
5
franklintempleton.com
Semiannual
Report
Franklin
MicroCap
Value
Fund
This
semiannual
report
for
Franklin
MicroCap
Value
Fund
covers
the
period
ended
April
30,
2023.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
high
total
return,
of
which
capital
appreciation
and
income
are
components.
The
Fund
normally
invests
at
least
80%
of
its
net
assets
in
securities
of
microcap
companies
with
total
market
capitalizations
of
$1
billion
or
less
or
within
the
bottom
40%
of
the
Russell
2000
®
Value
Index,
whichever
is
higher
at
the
time
of
purchase.
1
The
Fund
generally
invests
in
equity
securities,
predominantly
common
stocks,
of
companies
that
we
believe
are
undervalued
and
have
the
potential
for
capital
appreciation.
The
Fund
may
invest
up
to
25%
of
its
total
assets
in
foreign
securities.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-3.68%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Russell
2000
®
Value
Index,
which
measures
the
performance
of
those
Russell
2000
®
Index
companies
with
relatively
lower
price-to-book
ratios
and
lower
forecasted
growth
rates,
posted
a
-6.72%
cumulative
total
return
for
the
same
period.
2
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
7
.
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
.
Investment
Strategy
Our
strategy
is
to
buy
shares
of
companies
that
we
believe
are
undervalued
at
the
time
of
purchase
and
have
the
potential
for
capital
appreciation.
The
types
of
companies
the
Fund
may
invest
in
include,
among
other
things,
those
that
may
be
considered
out
of
favor
due
to
actual
or
perceived
cyclical
or
secular
challenges,
or
are
experiencing
temporary
setbacks,
diminished
expectations,
mismanagement
or
undermanagement,
or
are
financially
stressed.
In
choosing
investments,
we
conduct
an
in-depth
analysis
of
a
company’s
long-term
or
normalized
earnings
and
free
cash
flow
potential,
quality
of
management,
ownership
of
valuable
franchises,
trademarks
or
trade
names,
control
of
distribution
networks,
underutilized
assets
and
market
share
for
particular
products,
balance
sheet,
and
other
factors
that
may
identify
the
issuer
as
a
potential
investment.
The
investment
manager
considers
selling
a
security
when
it
no
longer
meets
its
value
criteria.
*Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Manager’s
Discussion
During
the
six-month
period
ended
April
30,
2023,
stock
selection
in
industrials,
health
care
and
energy
contributed
to
relative
performance.
Conversely,
stock
selection
in
financials
and
materials,
as
well
as
stock
selection
and
an
underweight
in
utilities,
curbed
relative
returns.
Individual
contributors
included
Harrow
Health,
Preformed
Line
Products
and
LSI
Industries.
Portfolio
Composition
4/30/23
%
of
Total
Net
Assets
Banks
17.8%
Machinery
10.5%
Health
Care
Equipment
&
Supplies
5.4%
Textiles,
Apparel
&
Luxury
Goods
4.5%
Hotels,
Restaurants
&
Leisure
4.4%
Energy
Equipment
&
Services
4.4%
Construction
&
Engineering
4.3%
Electrical
Equipment
4.1%
Diversified
REITs
3.2%
Electronic
Equipment,
Instruments
&
Components
2.9%
Insurance
2.7%
Specialty
Retail
2.7%
Professional
Services
2.6%
Pharmaceuticals
2.5%
Other*
25.6%
Short-Term
Investments
&
Other
Net
Assets
2.4%
1.
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.
Russell
2000
®
Value
Index
is
market
capitalization
weighted
and
measures
the
performance
of
those
Russell
2000
®
Index
companies
with
relatively
lower
price-to-
book
ratios
and
lower
forecasted
growth
rates.
2.
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.
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
24
.
Franklin
MicroCap
Value
Fund
6
franklintempleton.com
Semiannual
Report
Eyecare
pharmaceutical
company
Harrow
Health
bolstered
relative
returns
during
the
period.
In
its
latest
quarterly
update,
the
company
said
it
expected
its
gross
margin
to
rise
above
2021
levels
in
2023,
now
that
it
has
sold
its
non-ophthalmic
unit
and
as
supply-chain
constraints
ease.
Harrow
Health
also
reaffirmed
its
2023
guidance.
Preformed
Line
Systems,
which
makes
products
used
in
the
construction
and
maintenance
of
overhead,
ground-
mounted,
and
underground
networks
for
the
energy,
telecommunication,
and
cable
operator
industries,
supported
relative
results.
Its
2022
earnings
report
was
strong,
with
growth
across
most
of
its
regions,
and
the
company
said
that
price
increases
announced
over
the
past
two
years
have
helped
offset
raw
materials
and
transportation
cost
inflation.
The
company
also
continues
to
invest
in
its
facilities
to
increase
capacity
and
to
look
for
ways
to
grow
inorganically.
LSI
Industries
contributed
to
relative
results
over
the
six-
month
period.
The
company’s
latest
quarterly
financial
results
were
strong,
on
robust
revenue
growth
in
its
lighting
segment.
LSI
also
said
it
booked
a
major
order
from
an
auto
components
company
that
should
further
support
that
area
of
its
business,
and
ongoing
strength
in
its
overall
business
should
help
minimize
any
impact
a
slowing
economy
may
have
over
the
remainder
of
the
year.
Detractors
included
Investar
Holdings,
Premier
Financial
and
Peapack-Gladstone
Financial.
The
Funds’s
bank
stocks
were
the
main
detractors
from
relative
returns
during
the
quarter.
Among
them,
Investar
Holdings,
a
commercial
bank
focused
on
South
Louisiana,
curbed
relative
results
as
the
run
on
deposits
at
a
larger
bank
spooked
investors
across
the
banking
system.
Additionally,
the
bank
reported
a
decline
in
its
net
interest
margin
for
the
fourth
quarter,
as
funding
costs
increased
more
than
the
increase
on
the
yield
of
its
interest-earning
assets.
Meanwhile,
Investar
saw
a
rise
in
deposits
in
the
fourth
quarter
and
an
improvement
in
credit
quality.
Premier
Financial,
another
bank,
also
curbed
relative
results
amid
declining
deposit
balances
in
the
first
quarter.
In
its
quarterly
earnings
release,
the
bank
noted
deposit
withdrawals
and
saw
its
net
income
margin
decline
as
it
had
to
offer
higher
deposit
rates.
The
bank
is
also
constraining
its
residential
real
estate
lending,
given
the
economic
uncertainties.
Peapack-Gladstone
Financial
was
a
detractor.
The
company
reported
that
its
net
interest
margin
contracted
in
the
first
quarter,
as
clients
moved
money
from
noninterest
bearing
accounts
into
higher
yielding
deposit
accounts.
Loan
growth
was
solid,
but
the
bank
expects
growth
to
subside
given
the
economic
uncertainty
and
higher
interest
rates.
Nonetheless,
the
bank
appears
to
be
dealing
well
with
the
current
market
environment,
in
our
view. 
Thank
you
for
your
participation
in
Franklin
MicroCap
Value
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Oliver
H.
Wong,
CFA
Portfolio
Manager
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2023,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
4/30/23
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Harrow
Health,
Inc.
2.5%
Pharmaceuticals,
United
States
Preformed
Line
Products
Co.
2.4%
Electrical
Equipment,
United
States
Miller
Industries,
Inc.
2.3%
Machinery,
United
States
Sterling
Infrastructure,
Inc.
2.2%
Construction
&
Engineering,
United
States
Utah
Medical
Products,
Inc.
1.8%
Health
Care
Equipment
&
Supplies,
United
States
VAALCO
Energy,
Inc.
1.8%
Oil,
Gas
&
Consumable
Fuels,
United
States
Daktronics,
Inc.
1.8%
Electronic
Equipment,
Instruments
&
Components,
United
States
Helix
Energy
Solutions
Group,
Inc.
1.7%
Energy
Equipment
&
Services,
United
States
CTO
Realty
Growth,
Inc.
1.7%
Diversified
REITs,
United
States
Northeast
Bank
1.7%
Banks,
United
States
Performance
Summary
as
of
April
30,
2023
Franklin
MicroCap
Value
Fund
7
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
4/30/23
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;
Advisor
Class:
no
sales
charges.
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
–
A
4
6-Month
-3.68%
-8.96%
1-Year
+1.98%
-3.64%
5-Year
+24.87%
+3.37%
10-Year
+83.01%
+5.63%
Advisor
6-Month
-3.57%
-3.57%
1-Year
+2.21%
+2.21%
5-Year
+26.40%
+4.80%
10-Year
+87.48%
+6.49%
See
page
8
for
Performance
Summary
footnotes.
Franklin
MicroCap
Value
Fund
Performance
Summary
8
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.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
Fund’s
ability
to
invest
in
smaller-company
securities
that
may
have
limited
liquidity
involves
additional
risks,
such
as
relatively
small
revenues,
limited
product
lines
and
small
market
share.
Historically,
these
stocks
have
exhibited
greater
price
volatility
than
larger-company
stocks,
especially
over
the
short
term.
In
addition,
the
Fund
may
invest
up
to
25%
of
its
total
assets
in
foreign
securities,
which
involve
special
risks,
including
currency
fluctuations
and
economic
and
political
uncertainty.
Value
securities
may
not
increase
in
price
as
anticipated
or
may
decline
further
in
value.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
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
2/29/2024
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.
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.
Distributions
(11/1/22–4/30/23)
Share
Class
Net
Investment
Income
Short-Term
Capital
Gain
Long-Term
Capital
Gain
Total
A
$0.0851
$0.0478
$1.4886
$1.6215
R6
$0.1791
$0.0478
$1.4886
$1.7155
Advisor
$0.1556
$0.0478
$1.4886
$1.6920
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
1.24%
1.26%
Advisor
0.99%
1.01%
Your
Fund’s
Expenses
Franklin
MicroCap
Value
Fund
9
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
11/1/22
Ending
Account
Value
4/30/23
Expenses
Paid
During
Period
11/1/22–4/30/23
1,2
Ending
Account
Value
4/30/23
Expenses
Paid
During
Period
11/1/22–4/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$963.20
$5.89
$1,018.80
$6.06
1.21%
R6
$1,000
$964.80
$4.28
$1,020.44
$4.40
0.88%
Advisor
$1,000
$964.30
$4.68
$1,020.03
$4.81
0.96%
10
franklintempleton.com
Semiannual
Report
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Formerly,
Franklin
Mutual
U.S.
Value
Fund
This
semiannual
report
for
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
covers
the
period
ended
April
30,
2023.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
high
total
return,
of
which
capital
appreciation
and
income
are
components.
The
Fund
normally
invests
at
least
80%
of
its
net
assets
in
U.S.
mid
cap
securities.
Mid
capitalization
companies
are
companies
with
market
capitalizations
equal
to
those
within
the
universe
of
the
Russell
Midcap
®
Value
Index
1
at
the
time
of
purchase.
The
Fund
invests
primarily
in
equity
securities
(including
securities
convertible
into,
or
that
we
expect
to
be
exchanged
for,
common
or
preferred
stock)
of
U.S.
companies
that
we
believe
are
available
at
market
prices
less
than
their
fundamental
value.
The
Fund
currently
does
not
expect
to
invest
more
than
10%
of
its
net
assets
in
non-
U.S.
securities.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+2.85%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Russell
MidCap
®
Value
Index,
which
is
market
capitalization
weighted
and
measures
the
performance
of
those
Russell
Midcap
®
Index
companies
with
relatively
lower
price-to-book
ratios
and
lower
forecasted
growth
rates,
posted
a
+2.26%
cumulative
total
return
for
the
same
period.
2
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
12
.
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
.
Investment
Strategy
We
employ
a
research
driven,
fundamental
value
strategy
for
the
Fund
and
select
investments
based
on
our
own
evaluation
of
the
security’s
fundamental
value,
including
for
equity
securities,
an
analysis
of
the
cash
flow
potential,
long-
term
earnings,
multiples
of
earnings
and
book
value.
We
examine
each
investment
separately
and
there
are
no
set
criteria
as
to
specific
value
parameters,
earnings
or
industry
type.
*Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Manager’s
Discussion
During
the
six-month
period
ended
April
30,
2023,
stock
selection
in
the
consumer
discretionary
and
financials
sectors,
along
with
stock
selection
and
an
overweight
in
industrials,
contributed
to
relative
results.
Stock
selection
in
health
care,
real
estate
and
utilities
curbed
relative
returns.
Individual
contributors
included
DR
Horton,
Tapestry
and
Univar
Solutions.
U.S.
homebuilder
DR
Horton
contributed
to
relative
performance,
following
a
strong
earnings
report
in
April.
The
company’s
fiscal
second-quarter
earnings
beat
Wall
Street
forecasts
on
higher-than-expected
closings,
with
orders
down
a
modest
5%
despite
the
higher
mortgage
rate
environment.
With
the
housing
market
looking
to
be
more
stable,
DR
Horton
expects
margins
to
remain
steady
in
the
Portfolio
Composition
4/30/23
%
of
Total
Net
Assets
Professional
Services
5.8%
Electric
Utilities
5.4%
Health
Care
Providers
&
Services
5.1%
Insurance
5.1%
Financial
Services
4.4%
Chemicals
4.4%
Banks
4.1%
Aerospace
&
Defense
4.0%
Energy
Equipment
&
Services
3.5%
Food
Products
3.5%
Real
Estate
Management
&
Development
3.4%
Trading
Companies
&
Distributors
3.2%
Automobile
Components
2.5%
Oil,
Gas
&
Consumable
Fuels
2.3%
Other*
35.3%
Short-Term
Investments
&
Other
Net
Assets
8.0%
1.
Russell
Midcap
®
Value
Index
is
market
capitalization
weighted
and
measures
the
performance
of
those
Russell
Midcap
®
Index
companies
with
relatively
lower
price-to-
book
ratios
and
lower
forecasted
growth
rates.
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.
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
33
.
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
11
franklintempleton.com
Semiannual
Report
21%─22%
range
for
the
fiscal
third
quarter
of
2023.
Tapestry,
a
U.S.-based
owner
of
the
Coach
and
Kate
Spade
brands,
contributed
to
relative
performance
following
robust
recent
quarterly
earnings
and
despite
the
challenging
global
economy.
The
company
also
continued
to
buy
back
shares.
We
believe
the
company
is
one
of
the
better
names
to
provide
exposure
to
an
apparel
recovery
and
China
reopening.
Moreover,
Tapestry
has
a
strong
balance
sheet,
is
cash
generative,
and
has
a
high
and
durable
margin.
Univar,
a
chemical
distribution
company,
outperformed
during
the
period
following
better-than-expected
third-quarter
results. In
addition,
its
shares
were
bid
higher
due
to
the
company’s
announcement
that
it
will
repurchase
$1
billion
of
stock
through
2025
and
plan
to
initiate
a
dividend
in
2023.
Lastly,
later
in
the
reporting
period,
Univar
received
a
buyout
offer
from
a
private-equity
firm.
Detractors
included
SVB
Financial
Group
(not
held
at
period-
end),
Citizens
Financial
Group
and
Vornado
Realty
Trust.
SVB
Financial,
a
U.S.-based
bank,
detracted
from
relative
returns.
The
bank
suffered
from
a
rapid
run
on
its
deposits
in
March
in
the
wake
of
its
attempt
to
raise
capital
following
losses
on
the
sale
of
its
U.S.
Treasuries
portfolio.
We
eliminated
the
position
prior
to
it
being
seized
by
the
regulators;
nevertheless
it
was
a
big
drag
on
performance
during
the
period.
Citizens
Financial
Group,
a
U.S.-based
bank,
detracted
from
relative
results
following
the
collapse
of
SVB
Financial
and
resulting
stresses
in
the
broader
banking
system.
The
bank
has
been
focused
on
managing
both
its
balance
sheet
and
interest-rate
exposure
in
an
uncertain
macroeconomic
environment
and ended
2022
with
a
strong
credit
and
capital
position. Citizens
saw
higher
deposit
costs
in
the
first
quarter,
and
some
deposit
outflows,
but
the
company
is
increasing
its
balance
sheet
flexibility
to
deal
with
the
more
uncertain
environment.
Vornado
Realty
Trust,
an
office
real
estate
investment
trust,
curbed
relative
returns
during
the
period.
In
its
fourth-quarter
earnings
release,
the
company
warned
that
the
outlook
for
leasing
remained
difficult.
The
company
also
faces
challenges
as
people
continue
to
work
from
home,
interest
rates
increase
and
recession
concerns
mount
following
recent
bank
failures.
Thank
you
for
your
participation
in
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Grace
Hoefig
Lead
Portfolio
Manager
Srini
Vijay,
CFA
Stephen
Shunk,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2023,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
4/30/23
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Kraft
Heinz
Co.
(The)
3.5%
Food
Products,
United
States
CBRE
Group,
Inc.
2.7%
Real
Estate
Management
&
Development,
United
States
KBR,
Inc.
2.3%
Professional
Services,
United
States
Williams
Cos.,
Inc.
(The)
2.3%
Oil,
Gas
&
Consumable
Fuels,
United
States
Brixmor
Property
Group,
Inc.
2.3%
Retail
REITs,
United
States
Flex
Ltd.
2.3%
Electronic
Equipment,
Instruments
&
Components,
United
States
DR
Horton,
Inc.
2.2%
Household
Durables,
United
States
Entergy
Corp.
2.2%
Electric
Utilities,
United
States
Voya
Financial,
Inc.
2.2%
Financial
Services,
United
States
eBay,
Inc.
2.1%
Broadline
Retail,
United
States
Performance
Summary
as
of
April
30,
2023
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
12
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
4/30/23
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;
Advisor
Class:
no
sales
charges.
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
–
A
4
6-Month
+2.85%
-2.80%
1-Year
-1.50%
-6.91%
5-Year
+28.85%
+4.02%
10-Year
+88.18%
+5.92%
Advisor
6-Month
+2.99%
+2.99%
1-Year
-1.25%
-1.25%
5-Year
+30.45%
+5.46%
10-Year
+92.95%
+6.79%
See
page
13
for
Performance
Summary
footnotes.
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Performance
Summary
13
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.
All
investments
involve
risks,
including
possible
loss
of
principal.
Value
securities
may
not
increase
in
price
as
anticipated
or
may
decline
further
in
value.
While
smaller
and
midsize
companies
may
offer
substantial
opportunities
for
capital
growth,
they
also
involve
heightened
risks
and
should
be
considered
speculative.
Historically,
smaller-
and
midsize-company
securities
have
been
more
volatile
in
price
than
larger-company
securities,
especially
over
the
short
term.
The
Fund
may
invest
in
foreign
securities,
which
may
involve
special
risks,
including
currency
fluctuations
and
economic
and
political
uncertainty.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
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
2/29/2024
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.
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.
Distributions
(11/1/22–4/30/23)
Share
Class
Net
Investment
Income
Long-Term
Capital
Gain
Total
A
$0.3267
$1.0752
$1.4019
C
$0.0535
$1.0752
$1.1287
R
$0.2454
$1.0752
$1.3206
R6
$0.4459
$1.0752
$1.5211
Advisor
$0.4082
$1.0752
$1.4834
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.91%
0.92%
Advisor
0.66%
0.67%
Your
Fund’s
Expenses
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
14
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
expen
se
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
11/1/22
Ending
Account
Value
4/30/23
Expenses
Paid
During
Period
11/1/22–4/30/23
1,2
Ending
Account
Value
4/30/23
Expenses
Paid
During
Period
11/1/22–4/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,028.50
$4.49
$1,020.37
$4.47
0.89%
C
$1,000
$1,024.60
$8.24
$1,016.65
$8.21
1.64%
R
$1,000
$1,027.40
$5.75
$1,019.13
$5.72
1.14%
R6
$1,000
$1,030.50
$2.76
$1,022.08
$2.74
0.55%
Advisor
$1,000
$1,029.90
$3.24
$1,021.61
$3.22
0.64%
15
franklintempleton.com
Semiannual
Report
Franklin
Small
Cap
Value
Fund
This
semiannual
report
for
Franklin
Small
Cap
Value
Fund
covers
the
period
ended
April
30,
2023.
The
Fund
closed
to
new
investors
on
May
27,
2021.
Existing
shareholders
who
had
an
open
and
funded
account
on
May
27,
2021,
may
continue
to
invest
through
exchanges
and
additional
purchases.
Please
contact
your
financial
professional
or
refer
to
the
Fund’s
prospectus
for
more
information.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
long-term
total
return
by
normally
investing
at
least
80%
of
its
net
assets
in
investments
of
small-capitalization
(small-cap)
companies,
predominantly
common
stocks,
and
generally
investing
in
equity
securities
of
companies
that
we
believe
are
undervalued
at
the
time
of
purchase
and
have
the
potential
for
capital
appreciation.
We
define
small-cap
companies
as
those
with
market
capitalizations
not
exceeding
either:
the
highest
market
capitalization
in
the
Russell
2000
®
Index;
1
or
the
12-month
average
of
the
highest
market
capitalization
in
the
Russell
2000
®
Index,
whichever
is
greater
at
the
time
of
purchase.
The
Fund
may
also
invest
in
real
estate
investment
trusts
(REITs)
and
invest
up
to
25%
of
its
total
assets
in
foreign
securities.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+0.29%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Russell
2000
®
Value
Index,
which
measures
the
performance
of
those
Russell
2000
®
Index
companies
with
relatively
lower
price-to-book
ratios
and
lower
forecasted
growth
rates,
posted
a
-6.72%
cumulative
total
return
for
the
same
period.
2
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
18
.
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
.
*Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Investment
Strategy
The
Fund
generally
invests
in
equity
securities,
predominantly
common
stocks
of
small
cap
companies,
that
we
believe
are
undervalued
at
the
time
of
purchase
and
have
the
potential
for
capital
appreciation.
A
stock
is
undervalued
when
it
trades
at
less
than
the
price
at
which
we
believe
it
would
trade
if
the
market
reflected
all
factors
relating
to
the
company’s
worth.
Following
this
strategy,
the
Fund
invests
in
companies
that
we
believe
have,
for
example:
stock
prices
that
are
low
relative
to
current,
or
historical
or
future
earnings,
book
value,
cash
flow
or
sales;
recent
sharp
price
declines
but
the
potential
for
good
long-term
earnings
prospects;
and
valuable
intangibles
not
reflected
in
the
stock
price.
The
types
of
companies
the
Fund
may
invest
in
include
those
that
may
be
considered
out
of
favor
due
to
actual
or
perceived
cyclical
or
secular
challenges,
or
are
experiencing
temporary
setbacks,
diminished
expectations,
mismanagement
or
undermanagement,
or
are
financially
stressed.
Environmental,
social
and
governance
(ESG)
related
assessments
of
companies
are
also
considered.
Portfolio
Composition
4/30/23
%
of
Total
Net
Assets
Banks
11.1%
Oil,
Gas
&
Consumable
Fuels
6.5%
Hotels,
Restaurants
&
Leisure
6.4%
Insurance
5.8%
Building
Products
5.4%
Health
Care
Equipment
&
Supplies
4.7%
Chemicals
4.7%
Electronic
Equipment,
Instruments
&
Components
4.7%
Food
Products
4.5%
Software
3.9%
Metals
&
Mining
3.8%
Trading
Companies
&
Distributors
3.8%
Semiconductors
&
Semiconductor
Equipment
2.7%
Construction
&
Engineering
2.4%
Other*
25.1%
Short-Term
Investments
&
Other
Net
Assets
4.5%
1.
Russell
2000
®
Index
is
market
capitalization
weighted
and
measures
the
performance
of
the
approximately
2,000
smallest
companies
in
the
Russell
3000®
Index
that
represent
a
small
amount
of
the
total
market
capitalization
of
the
Russell
3000
®
Index.
2.
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.
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
41
.
Franklin
Small
Cap
Value
Fund
16
franklintempleton.com
Semiannual
Report
Manager’s
Discussion
During
the
six-month
period
ended
April
30,
2023,
security
selection
in
the
health
care,
industrials
and
energy
sectors
contributed
to
relative
results.
An
underweight
in
utilities,
stock
selection
in
financials
and
an
underweight
in
real
estate
curbed
returns
on
a
relative
basis.
Among
the
Fund’s
largest
contributors
were
Integer
Holdings,
Glanbia
and
Univar
Solutions
(not
held
at
period-
end).
Integer
Holdings,
a
medical
device
contract
development
and
manufacturing
company,
contributed
during
the
period
due
to
an
increase
in
demand
for
medical
devices
and
supplies,
driven
by
an
improvement
in
procedure
volumes.
Also,
the
supply-chain
issues
faced
in
the
third
quarter
of
2022
improved
sequentially
during
this
six-month
period.
Together,
higher
demand
and
improvement
in
the
supply
chain
resulted
in
stronger-than-expected
earnings
results.
Integer
also
issued
a
low
coupon
convertible
bond
and
used
the
proceeds
to
retire
a
higher
interest-bearing
term
loan,
which
reduces
the
overall
interest
burden
with
limited
impact
from
potential
equity
dilution.
Glanbia,
an
international
consumer
foods
and
nutritional
products
company,
contributed
to
results
during
the
period
after
reporting
better-than-expected
earnings
and
announcing
the
divestiture
of
a
joint
venture
at
an
attractive
valuation
as
it
takes
steps
to
simplify
its
business.
The
company’s
initial
fiscal
2023
guidance
also
suggested
margins
should
expand
as
it
laps
significant
raw
material
inflation
in
its
key
inputs.
We
remain
positive
on
the
company’s
growth
prospects
in
the
growing
sports
nutrition
space,
and
on
the
margin
recapture
opportunity.
Univar,
a
chemical
distribution
company,
outperformed
during
the
period
following
better-than-expected
third-quarter
results.
In
addition,
its
shares
were
bid
higher
due
to
the
company’s
announcement
that
it
will
repurchase
$1
billion
of
stock
through
2025
and
plan
to
initiate
a
dividend
in
2023. 
Lastly,
later
in
the
reporting
period,
Univar
received
a
buyout
offer
from
a
private-equity
firm.
The
Fund’s
most
significant
detractors
included
Columbia
Banking
System,
NetScout
Systems
and
Hanover
Insurance
Group.
Columbia
Banking
System,
a
regional
bank
with
a
footprint
in
the
western
United
States,
detracted
from
performance
during
the
period
as
several
mid-sized
banks
failed
due
to
deposit
runs,
which
heightened
investor
concerns
regarding
banking
sector
capital
and
liquidity.
Following
the
bank’s
acquisition
of
Umpqua
at
the
beginning
of
March,
Columbia
is
navigating
the
Umpqua
systems
conversions
and
integration
amid
the
fallout
from
the
bank
failures,
which
could
increase
the
risk
of
customer
attrition
in
the
near
term.
Columbia
and
Umpqua
did
not
have
significant
industry
deposit
concentrations
or
outsized
uninsured
deposit
funding
levels
relative
to
peers.
However,
mid-sized
commercial
banks
like
Columbia
may
see
accelerating
deposit
outflows
given
increased
deposit
rate
competition
and
depositor
security
concerns,
which
may
put
additional
pressure
on
net
interest
income
outlooks.
NetScout
Systems
is
a
provider
of
real
time
operational
intelligence
and
performance
analytics
for
optimizing
network
performance.
While
revenues
in
the
core
service
provider
business
have
stabilized,
revenues
in
the
newer
security
business
have
declined
recently.
The
Hanover
Group,
a
property
and
casualty
insurer,
declined
during
the
period
as
results
were
negatively
impacted
by
both
significantly
elevated
natural
catastrophe
losses,
as
well
as
the
impact
of
rising
inflationary
trends
on
loss
costs.
While
rising
loss
severity
trends
driven
by
elevated
inflation
have
put
pressure
on
insurance
claim
payouts,
pricing
trends
have
accelerated,
reflecting
industry
discipline,
with
rate
increases
expected
to
mitigate
the
impact
of
higher
loss
severity
over
time,
resulting
in
improving
results.
Thank
you
for
your
participation
in
Franklin
Small
Cap
Value
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Top
10
Holdings
4/30/23
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
ACI
Worldwide,
Inc.
3.9%
Software,
United
States
Crescent
Point
Energy
Corp.
3.8%
Oil,
Gas
&
Consumable
Fuels,
Canada
Glanbia
plc
3.0%
Food
Products,
Ireland
UFP
Industries,
Inc.
2.9%
Building
Products,
United
States
Hanover
Insurance
Group,
Inc.
(The)
2.8%
Insurance,
United
States
Green
Plains,
Inc.
2.7%
Oil,
Gas
&
Consumable
Fuels,
United
States
Integer
Holdings
Corp.
2.4%
Health
Care
Equipment
&
Supplies,
United
States
Brinker
International,
Inc.
2.4%
Hotels,
Restaurants
&
Leisure,
United
States
SouthState
Corp.
2.4%
Banks,
United
States
Arconic
Corp.
2.3%
Metals
&
Mining,
United
States
Franklin
Small
Cap
Value
Fund
17
franklintempleton.com
Semiannual
Report
Steven
Raineri
Lead
Portfolio
Manager
Nicholas
Karzon,
CFA
Christopher
Meeker,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2023,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
April
30,
2023
Franklin
Small
Cap
Value
Fund
18
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
4/30/23
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;
Advisor
Class:
no
sales
charges.
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
–
A
4
6-Month
+0.29%
-5.23%
1-Year
-0.84%
-6.29%
5-Year
+32.75%
+4.64%
10-Year
+114.02%
+7.30%
Advisor
6-Month
+0.40%
+0.40%
1-Year
-0.60%
-0.60%
5-Year
+34.36%
+6.08%
10-Year
+119.68%
+8.19%
See
page
19
for
Performance
Summary
footnotes.
Franklin
Small
Cap
Value
Fund
Performance
Summary
19
franklintempleton.com
Semiannual
Report
5
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
Fund’s
investments
in
smaller-company
stocks
carry
special
risks
as
such
stocks
have
historically
exhibited
greater
price
volatility
than
larger-company
stocks,
particularly
over
the
short
term.
Value
securities
may
not
increase
in
price
as
anticipated
or
may
decline
further
in
value.
Additionally,
smaller
companies
often
have
relatively
small
revenues,
limited
product
lines
and
small
market
share.
In
addition,
the
Fund
may
invest
up
to
25%
of
its
total
assets
in
foreign
securities,
which
involve
special
risks,
including
currency
fluctuations
and
economic
and
political
uncertainty.
REITS
may
be
affected
by
any
change
in
the
value
of
the
properties
owned
and
other
factors,
and
their
prices
tend
to
go
up
and
down.
The
managers'
environmental
social
and
governance
(ESG)
strategies
may
limit
the
types
and
number
of
investments
available
and,
as
a
result,
may
forego
favorable
market
opportunities
or
underperform
strategies
that
are
not
subject
to
such
criteria.
There
is
no
guarantee
that
the
strategy's
ESG
directives
will
be
successful
or
will
result
in
better
performance.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
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.
Distributions
(11/1/22–4/30/23)
Share
Class
Net
Investment
Income
Long-Term
Capital
Gain
Total
A
$0.1982
$1.4008
$1.5990
C
–
$1.4008
$1.4008
R
$0.0779
$1.4008
$1.4787
R6
$0.4091
$1.4008
$1.8099
Advisor
$0.3292
$1.4008
$1.7300
Total
Annual
Operating
Expenses
5
Share
Class
A
0.98%
Advisor
0.73%
Your
Fund’s
Expenses
Franklin
Small
Cap
Value
Fund
20
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
11/1/22
Ending
Account
Value
4/30/23
Expenses
Paid
During
Period
11/1/22–4/30/23
1,2
Ending
Account
Value
4/30/23
Expenses
Paid
During
Period
11/1/22–4/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,002.90
$4.83
$1,019.97
$4.87
0.97%
C
$1,000
$999.10
$8.54
$1,016.25
$8.61
1.72%
R
$1,000
$1,001.60
$6.07
$1,018.73
$6.12
1.22%
R6
$1,000
$1,004.80
$2.93
$1,021.88
$2.95
0.59%
Advisor
$1,000
$1,004.00
$3.59
$1,021.21
$3.62
0.72%
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
MicroCap
Value
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$27.57
$32.58
$21.77
$29.32
$31.06
$36.43
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.09
0.12
0.11
c
0.11
0.06
(0.04)
Net
realized
and
unrealized
gains
(losses)
(1.02)
(0.81)
12.15
(2.89)
(0.03)
(2.70)
Total
from
investment
operations
........
(0.93)
(0.69)
12.26
(2.78)
0.03
(2.74)
Less
distributions
from:
Net
investment
income
..............
(0.09)
(0.08)
(0.11)
(0.06)
—
(—)
d
Net
realized
gains
.................
(1.54)
(4.24)
(1.34)
(4.71)
(1.77)
(2.63)
Total
distributions
...................
(1.63)
(4.32)
(1.45)
(4.77)
(1.77)
(2.63)
Net
asset
value,
end
of
period
..........
$25.01
$27.57
$32.58
$21.77
$29.32
$31.06
Total
return
e
.......................
(3.68)%
(2.00)%
57.97%
(12.10)%
0.58%
(8.11)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.23%
1.24%
1.23%
1.28%
1.22%
1.17%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.21%
g
1.22%
g
1.23%
h
1.27%
g
1.21%
g
1.16%
g
Net
investment
income
(loss)
..........
0.65%
0.45%
0.37%
c
0.50%
0.23%
(0.11)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$138,778
$144,717
$161,200
$94,015
$145,897
$184,613
Portfolio
turnover
rate
................
9.47%
19.91%
31.98%
31.04%
7.04%
4.08%
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
$0.05
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
0.20%.
d
Amount
rounds
to
less
than
$0.01
per
share.
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
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
MicroCap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$28.18
$33.21
$22.17
$29.80
$31.43
$36.85
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.13
0.22
0.22
c
0.20
0.16
0.08
Net
realized
and
unrealized
gains
(losses)
(1.04)
(0.82)
12.36
(2.94)
(0.02)
(2.74)
Total
from
investment
operations
........
(0.91)
(0.60)
12.58
(2.74)
0.14
(2.66)
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.19)
(0.20)
(0.18)
—
(0.13)
Net
realized
gains
.................
(1.54)
(4.24)
(1.34)
(4.71)
(1.77)
(2.63)
Total
distributions
...................
(1.72)
(4.43)
(1.54)
(4.89)
(1.77)
(2.76)
Net
asset
value,
end
of
period
..........
$25.55
$28.18
$33.21
$22.17
$29.80
$31.43
Total
return
d
.......................
(3.52)%
(1.67)%
58.51%
(11.80)%
0.97%
(7.83)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.92%
0.91%
0.91%
0.95%
0.89%
0.85%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.88%
f
0.87%
f
0.88%
0.91%
f
0.86%
f
0.82%
f
Net
investment
income
...............
0.95%
0.79%
0.72%
c
0.86%
0.58%
0.23%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$32,926
$25,570
$23,137
$12,299
$19,266
$21,070
Portfolio
turnover
rate
................
9.47%
19.91%
31.98%
31.04%
7.04%
4.08%
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
$0.05
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
0.54%.
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
Value
Investors
Trust
Financial
Highlights
Franklin
MicroCap
Value
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
31,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$27.95
$32.96
$22.01
$29.62
$31.28
$36.67
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.12
0.19
0.19
c
0.17
0.15
0.05
Net
realized
and
unrealized
gains
(losses)
(1.04)
(0.81)
12.28
(2.94)
(0.04)
(2.72)
Total
from
investment
operations
........
(0.92)
(0.62)
12.47
(2.77)
0.11
(2.67)
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.15)
(0.18)
(0.13)
—
(0.09)
Net
realized
gains
.................
(1.54)
(4.24)
(1.34)
(4.71)
(1.77)
(2.63)
Total
distributions
...................
(1.70)
(4.39)
(1.52)
(4.84)
(1.77)
(2.72)
Net
asset
value,
end
of
period
..........
$25.33
$27.95
$32.96
$22.01
$29.62
$31.28
Total
return
d
.......................
(3.57)%
(1.77)%
58.40%
(11.95)%
0.87%
(7.90)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.98%
0.99%
0.98%
1.03%
0.97%
0.92%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.96%
f
0.97%
f
0.98%
g
1.02%
f
0.96%
f
0.91%
f
Net
investment
income
...............
0.89%
0.69%
0.60%
c
0.73%
0.48%
0.14%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$46,701
$44,877
$38,829
$22,429
$29,687
$53,329
Portfolio
turnover
rate
................
9.47%
19.91%
31.98%
31.04%
7.04%
4.08%
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
$0.05
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
0.43%.
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
Value
Investors
Trust
Schedule
of
Investments
(unaudited),
April
30,
2023
Franklin
MicroCap
Value
Fund
franklintempleton.com
Semiannual
Report
24
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
97.6%
Aerospace
&
Defense
2.0%
a
Ducommun,
Inc.
......................................
United
States
63,025
$
3,151,250
Magellan
Aerospace
Corp.
..............................
Canada
243,900
1,287,380
4,438,630
Banks
17.8%
American
National
Bankshares
,
Inc.
.......................
United
States
94,823
2,739,436
Arrow
Financial
Corp.
..................................
United
States
118,488
2,558,156
Bar
Harbor
Bankshares
.................................
United
States
121,700
3,018,160
First
Business
Financial
Services,
Inc.
......................
United
States
130,500
3,744,045
First
Internet
Bancorp
..................................
United
States
113,400
1,668,114
a
First
Western
Financial,
Inc.
.............................
United
States
110,706
1,966,139
Investar
Holding
Corp.
.................................
United
States
184,381
2,474,393
Northeast
Bank
.......................................
United
States
101,675
3,746,724
Northrim
BanCorp
,
Inc.
.................................
United
States
28,900
998,495
Orrstown
Financial
Services,
Inc.
.........................
United
States
113,653
2,178,728
Peapack
-Gladstone
Financial
Corp.
.......................
United
States
114,985
3,054,002
Peoples
Financial
Services
Corp.
.........................
United
States
66,013
2,663,624
Premier
Financial
Corp.
.................................
United
States
127,500
2,117,775
Southern
Missouri
Bancorp,
Inc.
..........................
United
States
76,800
2,786,304
Territorial
Bancorp,
Inc.
.................................
United
States
121,739
2,039,128
WesBanco
,
Inc.
.......................................
United
States
42,357
1,127,543
38,880,766
Biotechnology
2.5%
a
Anika
Therapeutics,
Inc.
................................
United
States
123,992
3,181,635
a
Catalyst
Pharmaceuticals,
Inc.
...........................
United
States
85,100
1,354,792
a
Vanda
Pharmaceuticals,
Inc.
.............................
United
States
141,200
866,968
5,403,395
Commercial
Services
&
Supplies
1.7%
a
Heritage-Crystal
Clean,
Inc.
.............................
United
States
106,300
3,716,248
Communications
Equipment
1.6%
a
Digi
International,
Inc.
..................................
United
States
54,701
1,649,782
PCTEL,
Inc.
.........................................
United
States
393,331
1,872,256
3,522,038
Construction
&
Engineering
4.3%
a
Matrix
Service
Co.
.....................................
United
States
607,019
2,889,410
a
Northwest
Pipe
Co.
....................................
United
States
65,700
1,809,378
a
Sterling
Infrastructure,
Inc.
..............................
United
States
127,451
4,705,491
9,404,279
Consumer
Staples
Distribution
&
Retail
1.3%
Village
Super
Market,
Inc.,
A
.............................
United
States
130,416
2,854,806
Diversified
REITs
3.2%
Alpine
Income
Property
Trust,
Inc.
.........................
United
States
193,121
3,105,386
CTO
Realty
Growth,
Inc.
................................
United
States
223,688
3,766,906
6,872,292
Diversified
Telecommunication
Services
0.5%
ATN
International,
Inc.
..................................
United
States
29,000
1,048,930
Electrical
Equipment
4.1%
LSI
Industries,
Inc.
....................................
United
States
132,918
1,686,729
Powell
Industries,
Inc.
..................................
United
States
53,100
2,127,186
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited)
Franklin
MicroCap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
25
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Electrical
Equipment
(continued)
Preformed
Line
Products
Co.
............................
United
States
41,350
$
5,138,978
8,952,893
Electronic
Equipment,
Instruments
&
Components
2.9%
a
Daktronics,
Inc.
.......................................
United
States
814,658
3,918,505
a
Kimball
Electronics,
Inc.
................................
United
States
120,416
2,423,974
6,342,479
Energy
Equipment
&
Services
4.4%
a
DMC
Global,
Inc.
.....................................
United
States
130,700
2,475,458
a
Helix
Energy
Solutions
Group,
Inc.
........................
United
States
526,542
3,817,429
a
Oil
States
International,
Inc.
.............................
United
States
461,490
3,248,890
9,541,777
Food
Products
1.6%
Alico
,
Inc.
...........................................
United
States
144,723
3,409,674
Health
Care
Equipment
&
Supplies
5.4%
a
Orthofix
Medical,
Inc.
..................................
United
States
167,800
3,159,674
a
Semler
Scientific,
Inc.
..................................
United
States
76,300
2,142,504
a
UFP
Technologies,
Inc.
.................................
United
States
18,600
2,563,824
Utah
Medical
Products,
Inc.
..............................
United
States
41,696
3,954,448
11,820,450
Health
Care
Technology
1.6%
a
CareCloud
,
Inc.
.......................................
United
States
346,708
1,133,735
a
Computer
Programs
and
Systems,
Inc.
.....................
United
States
92,333
2,389,578
3,523,313
Hotels,
Restaurants
&
Leisure
4.4%
a
Century
Casinos,
Inc.
..................................
United
States
361,662
2,546,101
a
Chuy's
Holdings,
Inc.
..................................
United
States
97,300
3,393,824
Ruth's
Hospitality
Group,
Inc.
............................
United
States
225,600
3,645,696
9,585,621
Household
Durables
1.3%
Hooker
Furnishings
Corp.
...............................
United
States
179,900
2,844,219
Independent
Power
and
Renewable
Electricity
Producers
1.6%
Polaris
Renewable
Energy,
Inc.
...........................
Canada
354,200
3,493,365
Insurance
2.7%
Investors
Title
Co.
.....................................
United
States
3,595
534,864
Tiptree,
Inc.
..........................................
United
States
183,518
2,527,043
United
Fire
Group,
Inc.
.................................
United
States
106,157
2,855,623
5,917,530
Interactive
Media
&
Services
1.4%
a
DHI
Group,
Inc.
.......................................
United
States
360,217
1,321,996
a
QuinStreet
,
Inc.
.......................................
United
States
163,900
1,820,929
3,142,925
IT
Services
1.3%
Hackett
Group,
Inc.
(The)
...............................
United
States
152,200
2,824,832
Machinery
10.5%
Alamo
Group,
Inc.
.....................................
United
States
18,100
3,198,813
a
Commercial
Vehicle
Group,
Inc.
..........................
United
States
401,700
2,944,461
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited)
Franklin
MicroCap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
26
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Machinery
(continued)
a
Graham
Corp.
........................................
United
States
236,446
$
3,043,060
Hurco
Cos.,
Inc.
......................................
United
States
95,500
2,142,065
a
L
B
Foster
Co.,
A
......................................
United
States
297,265
3,323,423
Miller
Industries,
Inc.
...................................
United
States
151,000
4,922,600
Shyft
Group,
Inc.
(The)
.................................
United
States
133,417
3,346,098
22,920,520
Media
1.6%
Entravision
Communications
Corp.,
A
......................
United
States
572,199
3,576,244
Metals
&
Mining
1.4%
Haynes
International,
Inc.
...............................
United
States
64,177
3,016,961
Office
REITs
0.5%
City
Office
REIT,
Inc.
...................................
United
States
204,800
1,191,936
Oil,
Gas
&
Consumable
Fuels
1.8%
VAALCO
Energy,
Inc.
..................................
United
States
917,300
3,926,044
Paper
&
Forest
Products
1.6%
Mercer
International,
Inc.
................................
Germany
366,300
3,564,099
Pharmaceuticals
2.5%
a
Harrow
Health,
Inc.
....................................
United
States
217,396
5,484,901
Professional
Services
2.6%
Heidrick
&
Struggles
International,
Inc.
.....................
United
States
118,439
2,974,003
Resources
Connection,
Inc.
.............................
United
States
187,400
2,734,166
5,708,169
Semiconductors
&
Semiconductor
Equipment
0.3%
a
AXT,
Inc.
............................................
United
States
254,300
678,981
Specialty
Retail
2.7%
a
America's
Car-Mart,
Inc.
................................
United
States
43,577
3,503,155
a
Children's
Place,
Inc.
(The)
..............................
United
States
30,300
898,092
a
Genesco,
Inc.
........................................
United
States
40,504
1,403,869
5,805,116
Textiles,
Apparel
&
Luxury
Goods
4.5%
a
Delta
Apparel,
Inc.
.....................................
United
States
210,718
2,400,078
Rocky
Brands,
Inc.
....................................
United
States
127,817
3,734,813
a
Vera
Bradley,
Inc.
.....................................
United
States
698,125
3,658,175
9,793,066
Total
Common
Stocks
(Cost
$175,549,628)
.....................................
213,206,499
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited)
Franklin
MicroCap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
27
Short
Term
Investments
2.4%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
2.4%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.483%
....
United
States
5,192,133
$
5,192,133
Total
Money
Market
Funds
(Cost
$5,192,133)
...................................
5,192,133
Total
Short
Term
Investments
(Cost
$5,192,133
)
.................................
5,192,133
a
Total
Investments
(Cost
$180,741,761)
100.0%
..................................
$218,398,632
Other
Assets,
less
Liabilities
0.0%
†
............................................
6,578
Net
Assets
100.0%
...........................................................
$218,405,210
See
Abbreviations
on
page
64
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$32.32
$40.20
$27.59
$34.61
$37.93
$41.08
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.21
0.37
0.43
1.14
c
0.52
0.45
Net
realized
and
unrealized
gains
(losses)
0.71
(3.28)
13.37
(5.47)
1.13
(0.43)
Total
from
investment
operations
........
0.92
(2.91)
13.80
(4.33)
1.65
0.02
Less
distributions
from:
Net
investment
income
..............
(0.33)
(0.45)
(1.19)
(0.54)
(0.46)
(0.46)
Net
realized
gains
.................
(1.08)
(4.52)
—
(2.15)
(4.51)
(2.71)
Total
distributions
...................
(1.41)
(4.97)
(1.19)
(2.69)
(4.97)
(3.17)
Net
asset
value,
end
of
period
..........
$31.83
$32.32
$40.20
$27.59
$34.61
$37.93
Total
return
d
.......................
2.85%
(8.06)%
51.14%
(13.94)%
6.22%
(0.15)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.92%
0.91%
0.91%
0.95%
0.93%
0.91%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.89%
0.90%
0.91%
g
0.93%
0.89%
0.86%
Net
investment
income
...............
1.27%
1.07%
1.18%
3.94%
c
1.55%
1.13%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$683,356
$688,933
$790,329
$538,538
$735,919
$772,976
Portfolio
turnover
rate
................
31.54%
66.63%
60.45%
57.78%
44.31%
29.85%
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
$0.69
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
1.55%.
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
Value
Investors
Trust
Financial
Highlights
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$30.50
$38.15
$26.21
$32.97
$36.13
$39.27
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.08
0.11
0.15
0.93
c
0.26
0.15
Net
realized
and
unrealized
gains
(losses)
0.67
(3.11)
12.72
(5.28)
1.09
(0.41)
Total
from
investment
operations
........
0.75
(3.00)
12.87
(4.35)
1.35
(0.26)
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.13)
(0.93)
(0.26)
—
(0.17)
Net
realized
gains
.................
(1.08)
(4.52)
—
(2.15)
(4.51)
(2.71)
Total
distributions
...................
(1.13)
(4.65)
(0.93)
(2.41)
(4.51)
(2.88)
Net
asset
value,
end
of
period
..........
$30.12
$30.50
$38.15
$26.21
$32.97
$36.13
Total
return
d
.......................
2.46%
(8.77)%
50.06%
(14.57)%
5.41%
(0.91)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.66%
1.66%
1.66%
1.70%
1.68%
1.66%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.64%
1.65%
1.66%
g
1.68%
1.64%
1.61%
Net
investment
income
...............
0.54%
0.32%
0.42%
3.36%
c
0.80%
0.38%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$13,355
$15,412
$20,132
$15,881
$27,443
$33,854
Portfolio
turnover
rate
................
31.54%
66.63%
60.45%
57.78%
44.31%
29.85%
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
$0.66
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
0.97%.
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
Value
Investors
Trust
Financial
Highlights
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$32.46
$40.34
$27.67
$34.70
$37.99
$41.10
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.17
0.28
0.34
1.11
c
0.44
0.35
Net
realized
and
unrealized
gains
(losses)
0.72
(3.29)
13.44
(5.55)
1.14
(0.42)
Total
from
investment
operations
........
0.89
(3.01)
13.78
(4.44)
1.58
(0.07)
Less
distributions
from:
Net
investment
income
..............
(0.25)
(0.35)
(1.11)
(0.44)
(0.36)
(0.33)
Net
realized
gains
.................
(1.08)
(4.52)
—
(2.15)
(4.51)
(2.71)
Total
distributions
...................
(1.33)
(4.87)
(1.11)
(2.59)
(4.87)
(3.04)
Net
asset
value,
end
of
period
..........
$32.02
$32.46
$40.34
$27.67
$34.70
$37.99
Total
return
d
.......................
2.74%
(8.32)%
50.87%
(14.16)%
5.94%
(0.39)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.17%
1.16%
1.16%
1.20%
1.18%
1.16%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.14%
1.15%
1.16%
g
1.18%
1.14%
1.11%
Net
investment
income
...............
1.01%
0.82%
0.93%
3.80%
c
1.30%
0.88%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$5,455
$5,419
$6,362
$4,465
$6,764
$7,280
Portfolio
turnover
rate
................
31.54%
66.63%
60.45%
57.78%
44.31%
29.85%
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
$0.70
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%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$33.91
$41.93
$28.73
$35.93
$39.20
$42.38
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.28
0.51
0.59
1.27
c
0.67
0.61
Net
realized
and
unrealized
gains
(losses)
0.75
(3.43)
13.91
(5.65)
1.18
(0.45)
Total
from
investment
operations
........
1.03
(2.92)
14.50
(4.38)
1.85
0.16
Less
distributions
from:
Net
investment
income
..............
(0.45)
(0.58)
(1.30)
(0.67)
(0.61)
(0.63)
Net
realized
gains
.................
(1.08)
(4.52)
—
(2.15)
(4.51)
(2.71)
Total
distributions
...................
(1.53)
(5.10)
(1.30)
(2.82)
(5.12)
(3.34)
Net
asset
value,
end
of
period
..........
$33.41
$33.91
$41.93
$28.73
$35.93
$39.20
Total
return
d
.......................
3.05%
(7.76)%
51.74%
(13.61)%
6.61%
0.19%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.59%
0.59%
0.59%
0.61%
0.59%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.55%
0.55%
0.55%
0.55%
0.52%
0.50%
Net
investment
income
...............
1.62%
1.42%
1.54%
4.24%
c
1.92%
1.49%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$35,883
$36,512
$39,290
$27,952
$36,398
$36,580
Portfolio
turnover
rate
................
31.54%
66.63%
60.45%
57.78%
44.31%
29.85%
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
$0.72
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
1.85%.
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
Value
Investors
Trust
Financial
Highlights
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
31,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$34.02
$42.04
$28.80
$36.01
$39.26
$42.39
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.26
0.48
0.55
1.28
c
0.63
0.57
Net
realized
and
unrealized
gains
(losses)
0.74
(3.44)
13.95
(5.72)
1.19
(0.46)
Total
from
investment
operations
........
1.00
(2.96)
14.50
(4.44)
1.82
0.11
Less
distributions
from:
Net
investment
income
..............
(0.41)
(0.54)
(1.26)
(0.62)
(0.56)
(0.53)
Net
realized
gains
.................
(1.08)
(4.52)
—
(2.15)
(4.51)
(2.71)
Total
distributions
...................
(1.49)
(5.06)
(1.26)
(2.77)
(5.07)
(3.24)
Net
asset
value,
end
of
period
..........
$33.53
$34.02
$42.04
$28.80
$36.01
$39.26
Total
return
d
.......................
2.99%
(7.86)%
51.57%
(13.71)%
6.48%
0.07%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.67%
0.66%
0.66%
0.70%
0.68%
0.66%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.64%
0.65%
0.66%
g
0.68%
0.64%
0.61%
Net
investment
income
...............
1.52%
1.32%
1.43%
4.22%
c
1.80%
1.38%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$46,548
$46,625
$56,787
$34,029
$47,427
$48,616
Portfolio
turnover
rate
................
31.54%
66.63%
60.45%
57.78%
44.31%
29.85%
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
$0.72
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
1.83%.
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
Value
Investors
Trust
Schedule
of
Investments
(unaudited),
April
30,
2023
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
franklintempleton.com
Semiannual
Report
33
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
92.0%
Aerospace
&
Defense
4.0%
Airbus
SE
...........................................
France
45,779
$
6,411,227
a
Babcock
International
Group
plc
..........................
United
Kingdom
2,830,391
11,314,216
Melrose
Industries
plc
..................................
United
Kingdom
1,456,657
7,503,376
Moog,
Inc.,
A
.........................................
United
States
65,267
5,881,209
31,110,028
Automobile
Components
2.5%
a
Dowlais
Group
plc
.....................................
United
Kingdom
2,298,418
3,830,200
Lear
Corp.
..........................................
United
States
123,183
15,725,542
19,555,742
Banks
4.1%
Citizens
Financial
Group,
Inc.
............................
United
States
540,743
16,730,588
PNC
Financial
Services
Group,
Inc.
(The)
...................
United
States
117,902
15,356,736
32,087,324
Broadline
Retail
2.1%
eBay,
Inc.
...........................................
United
States
361,656
16,791,688
Building
Products
1.3%
Johnson
Controls
International
plc
.........................
United
States
172,553
10,325,571
Chemicals
4.4%
Ashland,
Inc.
.........................................
United
States
103,709
10,537,872
Avient
Corp.
.........................................
United
States
310,196
11,945,648
Huntsman
Corp.
......................................
United
States
444,851
11,917,558
34,401,078
Commercial
Services
&
Supplies
1.6%
a
Stericycle,
Inc.
.......................................
United
States
276,424
12,618,756
Construction
&
Engineering
1.8%
a
WillScot
Mobile
Mini
Holdings
Corp.
.......................
United
States
312,872
14,204,389
Consumer
Finance
1.3%
Capital
One
Financial
Corp.
.............................
United
States
106,915
10,402,829
Containers
&
Packaging
1.4%
International
Paper
Co.
.................................
United
States
335,833
11,119,431
Electric
Utilities
5.4%
Entergy
Corp.
........................................
United
States
163,829
17,624,724
Evergy,
Inc.
..........................................
United
States
142,270
8,836,389
PPL
Corp.
...........................................
United
States
548,282
15,746,659
42,207,772
Electrical
Equipment
1.4%
Regal
Rexnord
Corp.
..................................
United
States
83,157
10,823,715
Electronic
Equipment,
Instruments
&
Components
2.3%
a
Flex
Ltd.
............................................
United
States
859,095
17,671,584
Energy
Equipment
&
Services
3.5%
Baker
Hughes
Co.
.....................................
United
States
428,565
12,531,241
Schlumberger
NV
.....................................
United
States
307,061
15,153,460
27,684,701
Financial
Services
4.4%
a
Fiserv,
Inc.
..........................................
United
States
63,864
7,799,072
Global
Payments,
Inc.
..................................
United
States
84,158
9,485,448
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited)
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
34
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Financial
Services
(continued)
Voya
Financial,
Inc.
....................................
United
States
225,378
$
17,236,909
34,521,429
Food
Products
3.5%
Kraft
Heinz
Co.
(The)
..................................
United
States
696,129
27,336,986
Health
Care
Equipment
&
Supplies
0.7%
a
Envista
Holdings
Corp.
.................................
United
States
143,610
5,527,549
Health
Care
Providers
&
Services
5.1%
AmerisourceBergen
Corp.
...............................
United
States
100,482
16,765,422
CVS
Health
Corp.
.....................................
United
States
53,033
3,887,849
Elevance
Health,
Inc.
..................................
United
States
17,726
8,307,290
Fresenius
SE
&
Co.
KGaA
...............................
Germany
388,801
11,266,134
40,226,695
Household
Durables
2.2%
DR
Horton,
Inc.
.......................................
United
States
160,628
17,640,167
Independent
Power
and
Renewable
Electricity
Producers
1.4%
AES
Corp.
(The)
......................................
United
States
471,118
11,146,652
Insurance
5.1%
Everest
Re
Group
Ltd.
.................................
United
States
30,323
11,462,094
Hartford
Financial
Services
Group,
Inc.
(The)
................
United
States
189,187
13,430,385
Willis
Towers
Watson
plc
................................
United
States
65,106
15,078,550
39,971,029
Machinery
1.8%
Parker-Hannifin
Corp.
..................................
United
States
43,460
14,119,285
Media
1.8%
a
Liberty
Broadband
Corp.,
C
..............................
United
States
169,505
14,370,634
Metals
&
Mining
1.2%
Alcoa
Corp.
..........................................
United
States
250,479
9,302,790
Office
REITs
0.9%
Vornado
Realty
Trust
...................................
United
States
446,197
6,697,417
Oil,
Gas
&
Consumable
Fuels
2.3%
Williams
Cos.,
Inc.
(The)
................................
United
States
591,696
17,904,721
Personal
Care
Products
1.6%
Haleon
plc
..........................................
United
States
2,837,406
12,475,219
Pharmaceuticals
1.5%
GSK
plc
............................................
United
States
668,106
12,048,066
Professional
Services
5.8%
ICF
International,
Inc.
..................................
United
States
102,339
11,666,646
KBR,
Inc.
...........................................
United
States
320,866
18,202,728
SS&C
Technologies
Holdings,
Inc.
.........................
United
States
270,012
15,806,503
45,675,877
Real
Estate
Management
&
Development
3.4%
a
CBRE
Group,
Inc.,
A
...................................
United
States
276,785
21,218,338
a
Cushman
&
Wakefield
plc
...............................
United
States
579,456
5,707,642
26,925,980
Retail
REITs
2.3%
Brixmor
Property
Group,
Inc.
.............................
United
States
832,510
17,757,438
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited)
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
35
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
1.2%
a
Onto
Innovation,
Inc.
...................................
United
States
114,154
$
9,244,191
Software
2.0%
Gen
Digital,
Inc.
......................................
United
States
900,371
15,909,555
Specialty
Retail
1.4%
Dick's
Sporting
Goods,
Inc.
..............................
United
States
74,456
10,796,864
Textiles,
Apparel
&
Luxury
Goods
2.1%
Tapestry,
Inc.
........................................
United
States
401,339
16,378,645
Trading
Companies
&
Distributors
3.2%
a
AerCap
Holdings
NV
...................................
Ireland
115,842
6,528,855
Ferguson
plc
.........................................
United
States
28,777
4,052,377
a
Univar
Solutions,
Inc.
..................................
United
States
410,761
14,582,016
25,163,248
Total
Common
Stocks
(Cost
$634,027,638)
.....................................
722,145,045
Short
Term
Investments
8.3%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
8.3%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.483%
....
United
States
65,477,823
65,477,823
Total
Money
Market
Funds
(Cost
$65,477,823)
..................................
65,477,823
Total
Short
Term
Investments
(Cost
$65,477,823
)
................................
65,477,823
a
Total
Investments
(Cost
$699,505,461)
100.3%
..................................
$787,622,868
Other
Assets,
less
Liabilities
(0.3)%
...........................................
(3,026,988)
Net
Assets
100.0%
...........................................................
$784,595,880
See
Abbreviations
on
page
64
.
a
Non-income
producing.
b
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
Small
Cap
Value
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$51.18
$61.24
$41.84
$49.48
$52.59
$59.07
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.16
0.25
0.47
c
0.45
0.51
d
0.39
e
Net
realized
and
unrealized
gains
(losses)
(0.02)
(4.60)
20.03
(5.01)
4.00
(1.95)
Total
from
investment
operations
........
0.14
(4.35)
20.50
(4.56)
4.51
(1.56)
Less
distributions
from:
Net
investment
income
..............
(0.20)
(0.34)
(0.35)
(0.58)
(0.44)
(0.42)
Net
realized
gains
.................
(1.40)
(5.37)
(0.75)
(2.50)
(7.18)
(4.50)
Total
distributions
...................
(1.60)
(5.71)
(1.10)
(3.08)
(7.62)
(4.92)
Net
asset
value,
end
of
period
..........
$49.72
$51.18
$61.24
$41.84
$49.48
$52.59
Total
return
f
........................
0.29%
(7.83)%
49.59%
(10.04)%
11.35%
(3.04)%
Ratios
to
average
net
assets
g
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.98%
0.98%
1.00%
1.08%
1.06%
1.05%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.97%
0.98%
h
1.00%
h
1.07%
i
1.05%
i
1.03%
i
Net
investment
income
...............
0.63%
0.46%
0.81%
c
1.08%
1.10%
d
0.69%
e
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,209,217
$1,268,890
$1,577,561
$1,123,039
$1,334,235
$1,366,866
Portfolio
turnover
rate
................
33.48%
47.06%
52.76%
67.46%
57.84%
53.26%
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
$0.15
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
0.56%.
d
Net
investment
income
per
share
includes
approximately
$0.14
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
0.80%.
e
Net
investment
income
per
share
includes
approximately
$0.09
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
0.52%.
f
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
Small
Cap
Value
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$42.88
$52.25
$35.87
$42.84
$46.45
$52.75
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.03)
(0.13)
0.02
c
0.12
0.15
d
(0.02)
e
Net
realized
and
unrealized
gains
(losses)
(0.01)
(3.87)
17.20
(4.33)
3.42
(1.72)
Total
from
investment
operations
........
(0.04)
(4.00)
17.22
(4.21)
3.57
(1.74)
Less
distributions
from:
Net
investment
income
..............
—
—
(0.09)
(0.26)
—
(0.06)
Net
realized
gains
.................
(1.40)
(5.37)
(0.75)
(2.50)
(7.18)
(4.50)
Total
distributions
...................
(1.40)
(5.37)
(0.84)
(2.76)
(7.18)
(4.56)
Net
asset
value,
end
of
period
..........
$41.44
$42.88
$52.25
$35.87
$42.84
$46.45
Total
return
f
........................
(0.09)%
(8.51)%
48.51%
(10.73)%
10.52%
(3.77)%
Ratios
to
average
net
assets
g
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.73%
1.73%
1.75%
1.83%
1.81%
1.80%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.72%
1.73%
h
1.75%
h
1.82%
i
1.80%
i
1.78%
i
Net
investment
income
(loss)
..........
(0.12)%
(0.29)%
0.05%
c
0.34%
0.35%
d
(0.06)%
e
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$59,806
$68,960
$99,994
$77,586
$111,639
$138,188
Portfolio
turnover
rate
................
33.48%
47.06%
52.76%
67.46%
57.84%
53.26%
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
$0.15
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
(0.20)%.
d
Net
investment
income
per
share
includes
approximately
$0.14
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
0.05%.
e
Net
investment
income
per
share
includes
approximately
$0.09
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
(0.23)%.
f
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
Small
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$50.46
$60.43
$41.31
$48.88
$51.98
$58.37
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.09
0.11
0.32
c
0.35
0.40
d
0.25
e
Net
realized
and
unrealized
gains
(losses)
(0.01)
(4.53)
19.79
(4.97)
3.94
(1.93)
Total
from
investment
operations
........
0.08
(4.42)
20.11
(4.62)
4.34
(1.68)
Less
distributions
from:
Net
investment
income
..............
(0.08)
(0.18)
(0.24)
(0.45)
(0.26)
(0.21)
Net
realized
gains
.................
(1.40)
(5.37)
(0.75)
(2.50)
(7.18)
(4.50)
Total
distributions
...................
(1.48)
(5.55)
(0.99)
(2.95)
(7.44)
(4.71)
Net
asset
value,
end
of
period
..........
$49.06
$50.46
$60.43
$41.31
$48.88
$51.98
Total
return
f
........................
0.16%
(8.05)%
49.22%
(10.27)%
11.06%
(3.28)%
Ratios
to
average
net
assets
g
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.23%
1.23%
1.25%
1.33%
1.31%
1.30%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.22%
1.23%
h
1.25%
h
1.32%
i
1.30%
i
1.28%
i
Net
investment
income
...............
0.37%
0.21%
0.56%
c
0.84%
0.85%
d
0.44%
e
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$116,240
$119,060
$150,288
$106,201
$143,634
$158,678
Portfolio
turnover
rate
................
33.48%
47.06%
52.76%
67.46%
57.84%
53.26%
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
$0.15
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
0.32%.
d
Net
investment
income
per
share
includes
approximately
$0.14
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
0.55%.
e
Net
investment
income
per
share
includes
approximately
$0.09
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
0.27%.
f
Total
return
is
not
annualized
for
periods
less
than
one
year.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
Small
Cap
Value
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
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
.....
$54.68
$65.05
$44.37
$52.29
$55.17
$61.71
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.28
0.48
0.71
c
0.65
0.75
d
0.66
e
Net
realized
and
unrealized
gains
(losses)
(0.03)
(4.89)
21.27
(5.27)
4.23
(2.05)
Total
from
investment
operations
........
0.25
(4.41)
21.98
(4.62)
4.98
(1.39)
Less
distributions
from:
Net
investment
income
..............
(0.41)
(0.59)
(0.55)
(0.80)
(0.68)
(0.65)
Net
realized
gains
.................
(1.40)
(5.37)
(0.75)
(2.50)
(7.18)
(4.50)
Total
distributions
...................
(1.81)
(5.96)
(1.30)
(3.30)
(7.86)
(5.15)
Net
asset
value,
end
of
period
..........
$53.12
$54.68
$65.05
$44.37
$52.29
$55.17
Total
return
f
........................
0.48%
(7.46)%
50.21%
(9.65)%
11.82%
(2.63)%
Ratios
to
average
net
assets
g
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.61%
0.62%
0.62%
0.68%
0.66%
0.66%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.59%
0.59%
0.59%
0.64%
h
0.61%
h
0.60%
h
Net
investment
income
...............
1.01%
0.84%
1.15%
c
1.47%
1.54%
d
1.12%
e
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,256,793
$1,248,367
$1,336,020
$510,946
$362,397
$270,426
Portfolio
turnover
rate
................
33.48%
47.06%
52.76%
67.46%
57.84%
53.26%
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
$0.15
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
0.90%.
d
Net
investment
income
per
share
includes
approximately
$0.14
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
1.24%.
e
Net
investment
income
per
share
includes
approximately
$0.09
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
0.95%.
f
Total
return
is
not
annualized
for
periods
less
than
one
year.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Value
Investors
Trust
Financial
Highlights
Franklin
Small
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
31,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$54.76
$65.13
$44.44
$52.36
$55.19
$61.66
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.24
0.41
0.63
c
0.58
0.67
d
0.56
e
Net
realized
and
unrealized
gains
(losses)
(0.03)
(4.91)
21.30
(5.29)
4.24
(2.06)
Total
from
investment
operations
........
0.21
(4.50)
21.93
(4.71)
4.91
(1.50)
Less
distributions
from:
Net
investment
income
..............
(0.33)
(0.50)
(0.49)
(0.71)
(0.56)
(0.47)
Net
realized
gains
.................
(1.40)
(5.37)
(0.75)
(2.50)
(7.18)
(4.50)
Total
distributions
...................
(1.73)
(5.87)
(1.24)
(3.21)
(7.74)
(4.97)
Net
asset
value,
end
of
period
..........
$53.24
$54.76
$65.13
$44.44
$52.36
$55.19
Total
return
f
........................
0.40%
(7.59)%
49.98%
(9.81)%
11.61%
(2.81)%
Ratios
to
average
net
assets
g
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.73%
0.73%
0.75%
0.83%
0.81%
0.80%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.72%
0.73%
h
0.75%
h
0.82%
i
0.80%
i
0.78%
i
Net
investment
income
...............
0.88%
0.71%
1.01%
c
1.30%
1.35%
d
0.94%
e
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,333,904
$1,406,507
$1,687,270
$646,240
$522,329
$544,792
Portfolio
turnover
rate
................
33.48
%
47.06%
52.76%
67.46%
57.84%
53.26%
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
$0.15
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
0.76%.
d
Net
investment
income
per
share
includes
approximately
$0.14
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
1.05%.
e
Net
investment
income
per
share
includes
approximately
$0.09
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
0.77%.
f
Total
return
is
not
annualized
for
periods
less
than
one
year.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
i
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited),
April
30,
2023
Franklin
Small
Cap
Value
Fund
franklintempleton.com
Semiannual
Report
41
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
95.5%
Aerospace
&
Defense
1.6%
QinetiQ
Group
plc
.....................................
United
Kingdom
9,843,772
$
45,995,781
Senior
plc
...........................................
United
Kingdom
9,311,309
19,238,068
65,233,849
Automobile
Components
2.1%
a
Adient
plc
...........................................
United
States
1,487,284
54,940,271
LCI
Industries
........................................
United
States
249,235
28,153,586
83,093,857
Banks
11.1%
Atlantic
Union
Bankshares
Corp.
..........................
United
States
604,750
17,307,945
b
Camden
National
Corp.
.................................
United
States
748,575
23,916,971
Columbia
Banking
System,
Inc.
...........................
United
States
3,518,260
75,150,034
First
Bancorp
........................................
United
States
394,375
12,138,863
First
Interstate
BancSystem,
Inc.,
A
........................
United
States
2,452,037
62,747,627
German
American
Bancorp,
Inc.
..........................
United
States
682,332
19,835,391
Peoples
Bancorp,
Inc.
..................................
United
States
1,092,506
28,470,707
Seacoast
Banking
Corp.
of
Florida
........................
United
States
573,016
12,715,225
SouthState
Corp.
.....................................
United
States
1,372,934
94,704,987
TriCo
Bancshares
.....................................
United
States
910,409
32,601,746
WSFS
Financial
Corp.
..................................
United
States
1,746,018
61,407,453
440,996,949
Building
Products
5.4%
Insteel
Industries,
Inc.
..................................
United
States
194,926
5,366,313
a
Masonite
International
Corp.
.............................
United
States
671,388
61,371,577
UFP
Industries,
Inc.
....................................
United
States
1,482,092
116,373,864
Zurn
Elkay
Water
Solutions
Corp.
.........................
United
States
1,455,691
31,370,141
214,481,895
Chemicals
4.7%
Ashland,
Inc.
.........................................
United
States
201,814
20,506,321
Avient
Corp.
.........................................
United
States
922,204
35,514,076
a,b
Elementis
plc
........................................
United
Kingdom
39,868,704
62,931,872
Minerals
Technologies,
Inc.
..............................
United
States
625,218
37,050,419
Tronox
Holdings
plc
...................................
United
States
2,212,544
30,289,727
186,292,415
Commercial
Services
&
Supplies
1.2%
Ritchie
Bros
Auctioneers,
Inc.
............................
Canada
837,871
47,917,843
Communications
Equipment
1.7%
a
Clearfield,
Inc.
........................................
United
States
445,491
19,459,047
a
NetScout
Systems,
Inc.
.................................
United
States
1,809,326
49,231,760
68,690,807
Construction
&
Engineering
2.4%
Primoris
Services
Corp.
.................................
United
States
1,751,652
44,316,796
Stantec,
Inc.
.........................................
Canada
827,121
49,727,399
a
WillScot
Mobile
Mini
Holdings
Corp.
.......................
United
States
46,701
2,120,225
96,164,420
Construction
Materials
1.0%
a
Summit
Materials,
Inc.,
A
................................
United
States
1,466,637
40,200,520
Consumer
Finance
0.5%
Bread
Financial
Holdings,
Inc.
............................
United
States
658,859
18,184,508
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
42
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Diversified
REITs
1.1%
Alexander
&
Baldwin,
Inc.
...............................
United
States
2,309,466
$
44,411,031
Electric
Utilities
1.0%
IDACORP,
Inc.
.......................................
United
States
370,526
41,172,849
Electrical
Equipment
1.4%
Regal
Rexnord
Corp.
..................................
United
States
437,574
56,954,632
Electronic
Equipment,
Instruments
&
Components
4.7%
Benchmark
Electronics,
Inc.
.............................
United
States
1,597,302
34,102,398
a
Coherent
Corp.
.......................................
United
States
2,364,967
80,739,973
CTS
Corp.
..........................................
United
States
47,225
1,851,692
a
Knowles
Corp.
.......................................
United
States
4,061,388
68,556,230
185,250,293
Energy
Equipment
&
Services
1.9%
Hunting
plc
..........................................
United
Kingdom
5,894,092
17,333,316
a
TechnipFMC
plc
......................................
United
Kingdom
4,159,753
56,947,019
74,280,335
Food
Products
4.5%
Glanbia
plc
..........................................
Ireland
7,917,096
120,074,316
Maple
Leaf
Foods,
Inc.
.................................
Canada
2,943,831
60,328,324
180,402,640
Ground
Transportation
0.3%
a
Saia,
Inc.
...........................................
United
States
39,257
11,689,557
Health
Care
Equipment
&
Supplies
4.7%
a
Envista
Holdings
Corp.
.................................
United
States
2,378,952
91,565,863
a
Integer
Holdings
Corp.
.................................
United
States
1,181,218
97,273,302
188,839,165
Hotel
&
Resort
REITs
1.7%
Sunstone
Hotel
Investors,
Inc.
............................
United
States
7,127,295
67,923,121
Hotels,
Restaurants
&
Leisure
6.4%
Boyd
Gaming
Corp.
...................................
United
States
274,124
19,024,205
a,b
Brinker
International,
Inc.
...............................
United
States
2,380,477
95,028,642
a
Dalata
Hotel
Group
plc
.................................
Ireland
7,114,641
35,764,027
a
Denny's
Corp.
........................................
United
States
900,447
10,094,011
a
Hilton
Grand
Vacations,
Inc.
.............................
United
States
1,104,478
47,271,658
Jack
in
the
Box,
Inc.
...................................
United
States
527,781
48,920,021
256,102,564
Household
Durables
0.9%
Century
Communities,
Inc.
..............................
United
States
140,017
9,428,745
a
M/I
Homes,
Inc.
.......................................
United
States
226,369
15,311,599
Meritage
Homes
Corp.
.................................
United
States
58,743
7,522,041
a
Taylor
Morrison
Home
Corp.
.............................
United
States
60,491
2,606,557
34,868,942
Industrial
REITs
0.8%
STAG
Industrial,
Inc.
...................................
United
States
988,732
33,488,353
Insurance
5.8%
CNO
Financial
Group,
Inc.
..............................
United
States
2,032,310
45,605,036
Hanover
Insurance
Group,
Inc.
(The)
.......................
United
States
916,187
109,539,318
Horace
Mann
Educators
Corp.
...........................
United
States
1,732,361
54,188,252
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
43
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Insurance
(continued)
Selective
Insurance
Group,
Inc.
...........................
United
States
223,306
$
21,511,067
230,843,673
Leisure
Products
1.3%
Brunswick
Corp.
......................................
United
States
586,768
49,752,059
Machinery
1.4%
Columbus
McKinnon
Corp.
..............................
United
States
1,322,893
45,917,616
REV
Group,
Inc.
......................................
United
States
656,097
7,039,921
Timken
Co.
(The)
.....................................
United
States
25,937
1,993,258
54,950,795
Metals
&
Mining
3.8%
Alcoa
Corp.
..........................................
United
States
526,852
19,567,283
a
Arconic
Corp.
........................................
United
States
3,702,167
91,628,633
Commercial
Metals
Co.
.................................
United
States
445,963
20,822,013
Ryerson
Holding
Corp.
.................................
United
States
495,568
18,717,603
150,735,532
Multi-Utilities
0.9%
Black
Hills
Corp.
......................................
United
States
539,257
35,208,090
Office
REITs
0.4%
Highwoods
Properties,
Inc.
..............................
United
States
729,944
16,730,316
Oil,
Gas
&
Consumable
Fuels
6.5%
Crescent
Point
Energy
Corp.
.............................
Canada
20,463,392
151,368,070
a,b
Green
Plains,
Inc.
.....................................
United
States
3,115,868
106,469,210
257,837,280
Professional
Services
0.6%
ICF
International,
Inc.
..................................
United
States
201,823
23,007,822
Real
Estate
Management
&
Development
0.1%
a
Cushman
&
Wakefield
plc
...............................
United
States
214,511
2,112,933
Semiconductors
&
Semiconductor
Equipment
2.7%
a
Cohu,
Inc.
...........................................
United
States
1,577,025
53,366,526
a
Onto
Innovation,
Inc.
...................................
United
States
691,312
55,982,446
109,348,972
Software
3.9%
a,b
ACI
Worldwide,
Inc.
....................................
United
States
6,068,510
153,715,358
Specialty
Retail
0.8%
a,b
Children's
Place,
Inc.
(The)
..............................
United
States
885,230
26,238,217
Group
1
Automotive,
Inc.
................................
United
States
24,149
5,420,968
31,659,185
Textiles,
Apparel
&
Luxury
Goods
2.4%
a
Capri
Holdings
Ltd.
....................................
United
States
624,980
25,936,670
Carter's,
Inc.
.........................................
United
States
673,025
46,956,954
Dr.
Martens
plc
.......................................
United
Kingdom
10,101,327
21,060,183
93,953,807
Trading
Companies
&
Distributors
3.8%
Herc
Holdings,
Inc.
....................................
United
States
577,956
57,807,159
Franklin
Value
Investors
Trust
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Value
Fund
(continued)
franklintempleton.com
Semiannual
Report
44
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Trading
Companies
&
Distributors
(continued)
McGrath
RentCorp
....................................
United
States
1,027,832
$
91,353,708
149,160,867
Total
Common
Stocks
(Cost
$3,559,516,140)
....................................
3,795,657,234
Short
Term
Investments
4.9%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
4.9%
c,d
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.483%
....
United
States
193,221,030
193,221,030
Total
Money
Market
Funds
(Cost
$193,221,030)
.................................
193,221,030
Total
Short
Term
Investments
(Cost
$193,221,030
)
...............................
193,221,030
a
Total
Investments
(Cost
$3,752,737,170)
100.4%
................................
$3,988,878,264
Other
Assets,
less
Liabilities
(0.4)%
...........................................
(12,917,821)
Net
Assets
100.0%
...........................................................
$3,975,960,443
See
Abbreviations
on
page
64
.
a
Non-income
producing.
b
See
Note
7
regarding
holdings
of
5%
voting
securities.
c
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
d
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Value
Investors
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
April
30,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$175,549,
628
$634,027,638
$3,059,663,508
Cost
-
Non-controlled
affiliates
(Note
3
f
and
7
)
..................
5,192,133
65,477,823
693,073,662
Value
-
Unaffiliated
issuers
................................
$213,206,499
$722,145,045
$3,327,356,964
Value
-
Non-controlled
affiliates
(Note
3
f
and
7
)
.................
5,192,133
65,477,823
661,521,300
Cash
..................................................
12,588
45,453
343,907
Foreign
currency,
at
value
(cost
$–,
$86,866
and
$68
,
respectively)
...
—
86,834
68
Receivables:
Investment
securities
sold
.................................
—
2,657,533
13,335,699
Capital
shares
sold
......................................
367,280
371,721
3,349,207
Dividends
.............................................
4,899
423,905
2,505,947
Total
assets
........................................
218,783,399
791,208,314
4,008,413,092
Liabilities:
Payables:
Investment
securities
purchased
............................
—
4,597,769
17,286,218
Capital
shares
redeemed
.................................
105,574
1,180,026
11,257,008
Management
fees
.......................................
136,952
291,022
1,756,040
Distribution
fees
........................................
29,326
152,936
350,351
Transfer
agent
fees
......................................
46,051
252,120
1,625,538
Professional
fees
.......................................
47,070
55,391
43,428
Trustees'
fees
and
expenses
...............................
101
85
132
Accrued
expenses
and
other
liabilities
.........................
13,115
83,085
133,934
Total
liabilities
.......................................
378,189
6,612,434
32,452,649
Net
assets,
at
value
...............................
$218,405,210
$784,595,880
$3,975,960,443
Net
assets
consist
of:
Paid-in
capital
...........................................
$170,129,885
$700,363,519
$3,663,034,102
Total
distributable
earnings
(losses)
...........................
48,275,325
84,232,361
312,926,341
Net
assets,
at
value
...............................
$218,405,210
$784,595,880
$3,975,960,443
Franklin
Value
Investors
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
April
30,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
Class
A:
Net
assets,
at
value
.....................................
$138,777,691
$683,355,566
$1,209,216,938
Shares
outstanding
......................................
5,549,297
21,467,218
24,319,814
Net
asset
value
per
share
a
................................
$25.01
$31.83
$49.72
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
..............................................
$26.47
$33.68
$52.61
Class
C:
Net
assets,
at
value
.....................................
$—
$13,354,963
$59,805,756
Shares
outstanding
......................................
—
443,322
1,443,219
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$—
$30.12
$41.44
Class
R:
Net
assets,
at
value
.....................................
$—
$5,455,089
$116,240,423
Shares
outstanding
......................................
—
170,355
2,369,527
Net
asset
value
and
maximum
offering
price
per
share
...........
$—
$32.02
$49.06
Class
R6:
Net
assets,
at
value
.....................................
$32,926,266
$35,882,521
$1,256,793,031
Shares
outstanding
......................................
1,288,564
1,074,147
23,659,914
Net
asset
value
and
maximum
offering
price
per
share
...........
$25.55
$33.41
$53.12
Advisor
Class:
Net
assets,
at
value
.....................................
$46,701,253
$46,547,741
$1,333,904,295
Shares
outstanding
......................................
1,843,355
1,388,055
25,054,305
Net
asset
value
and
maximum
offering
price
per
share
...........
$25.33
$33.53
$53.24
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Value
Investors
Trust
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
April
30,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$14,317,
$24,622
and
$622,491,
respectively)
Unaffiliated
issuers
......................................
$1,892,812
$7,753,807
$28,133,691
Non-controlled
affiliates
(Note
3
f
and
7
)
.......................
223,753
990,519
4,893,127
Total
investment
income
.................................
2,116,565
8,744,326
33,026,818
Expenses:
Management
fees
(Note
3
a
)
.................................
856,311
1,941,191
11,264,928
Distribution
fees:
(Note
3c
)
Class
A
..............................................
186,099
877,802
1,588,932
Class
C
..............................................
—
74,065
334,651
Class
R
..............................................
—
13,908
302,949
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
86,515
441,658
1,046,114
Class
C
..............................................
—
9,335
55,174
Class
R
..............................................
—
3,500
99,720
Class
R6
.............................................
7,241
10,008
268,872
Advisor
Class
..........................................
28,421
30,186
1,147,737
Custodian
fees
(Note
4
)
....................................
815
3,537
33,725
Reports
to
shareholders
fees
................................
6,883
37,051
132,173
Registration
and
filing
fees
..................................
44,497
85,778
130,070
Professional
fees
.........................................
62,500
73,980
62,233
Trustees'
fees
and
expenses
................................
11,147
26,325
115,655
Other
..................................................
4,371
12,310
36,843
Total
expenses
.......................................
1,294,800
3,640,634
16,619,776
Expense
reductions
(Note
4
)
.............................
(21)
(130)
—
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(24,852)
(94,815)
(306,972)
Net
expenses
.......................................
1,269,927
3,545,689
16,312,804
Net
investment
income
..............................
846,638
5,198,637
16,714,014
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
9,816,630
(2,919,861)
129,336,791
Non-controlled
affiliates
(Note
3
f
and
7
)
.....................
—
—
(33,684,019)
Foreign
currency
transactions
..............................
(2,161)
48,038
(27,556)
Net
realized
gain
(loss)
................................
9,814,469
(2,871,823)
95,625,216
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(19,800,921)
20,369,072
(161,494,000)
Non-controlled
affiliates
(Note
3
f
and
7
)
.....................
—
—
66,816,138
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
—
8
43,116
Net
change
in
unrealized
appreciation
(depreciation)
..........
(19,800,921)
20,369,080
(94,634,746)
Net
realized
and
unrealized
gain
(loss)
..........................
(9,986,452)
17,497,257
990,470
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(9,139,814)
$22,695,894
$17,704,484
Franklin
Value
Investors
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
31,
2022
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$846,638
$1,101,782
$5,198,637
$9,268,555
Net
realized
gain
(loss)
............
9,814,469
13,519,892
(2,871,823)
32,462,404
Net
change
in
unrealized
appreciation
(depreciation)
.................
(19,800,921)
(19,159,042)
20,369,080
(116,245,965)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(9,139,814)
(4,537,368)
22,695,894
(74,515,006)
Distributions
to
shareholders:
Class
A
........................
(8,541,841)
(21,286,656)
(29,741,114)
(96,583,319)
Class
C
........................
—
—
(544,896)
(2,428,978)
Class
R
........................
—
—
(222,649)
(760,276)
Class
R6
.......................
(1,655,076)
(3,35
8,927)
(1,629,920)
(4,793,006)
Advisor
Class
...................
(2,737,837)
(5,166,227)
(2,058,722)
(6,492,610)
Total
distributions
to
shareholders
.....
(12,934,754)
(29,811,810)
(34,197,301)
(111,058,189)
Capital
share
transactions:
(Note
2
)
Class
A
........................
7,966,017
8,510,330
4,471,615
59,910,867
Class
C
........................
—
—
(1,910,800)
(532,442)
Class
R
........................
—
—
100,595
305,628
Class
R6
.......................
10,629,150
6,135,424
(154,295)
5,072,393
Advisor
Class
...................
6,721,176
11,699,630
688,793
819,051
Total
capital
share
transactions
.......
25,316,343
26,345,384
3,195,908
65,575,497
Net
increase
(decrease)
in
net
assets
.....................
3,241,775
(8,003,794)
(8,305,499)
(119,997,698)
Net
assets:
Beginning
of
period
................
215,163,435
223,167,229
792,901,379
912,899,077
End
of
period
.....................
$218,405,210
$215,163,435
$784,595,880
$792,901,379
Franklin
Value
Investors
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
49
Franklin
Small
Cap
Value
Fund
Six
Months
Ended
April
30,
2023
(unaudited)
Year
Ended
October
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$16,714,014
$27,714,095
Net
realized
gain
(loss)
.................................................
95,625,216
126,095,925
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(94,634,746)
(503,752,410)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
17,704,484
(349,942,390)
Distributions
to
shareholders:
Class
A
.............................................................
(39,189,566)
(144,535,579)
Class
C
.............................................................
(2,197,068)
(9,999,178)
Class
R
.............................................................
(3,524,991)
(13,461,304)
Class
R6
............................................................
(41,658,770)
(123,172,938)
Advisor
Class
........................................................
(43,515,807)
(150,020,873)
Total
distributions
to
shareholders
..........................................
(130,086,202)
(441,189,872)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(25,886,590)
(45,290,914)
Class
C
.............................................................
(7,099,075)
(13,371,033)
Class
R
.............................................................
390,824
(6,656,943)
Class
R6
............................................................
45,084,867
134,520,650
Advisor
Class
........................................................
(35,931,958)
(17,417,388)
Total
capital
share
transactions
............................................
(23,441,932)
51,784,372
Net
increase
(decrease)
in
net
assets
...................................
(135,823,650)
(739,347,890)
Net
assets:
Beginning
of
period
.....................................................
4,111,784,093
4,851,131,983
End
of
period
..........................................................
$3,975,960,443
$4,111,784,093
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
50
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Value
Investors
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of
three
separate
funds
(Funds).
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
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
A,
Class
R6
&
Advisor
Class
Franklin
MicroCap
Value
Fund
Class
A,
Class
C,
Class
R
,
Class
R6
&
Advisor
Class
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
a
Franklin
Small
Cap
Value
Fund
b
a
Effective
June
1,
2022,
Franklin
Mutual
U.S.
Value
Fund
was
renamed
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund.
b
Effective
May
27,
2021,
Franklin
Small
Cap
Value
Fund
was
closed
to
new
investors
with
limited
exceptions.
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
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. 
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
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
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
51
franklintempleton.com
Semiannual
Report
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
April
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. 
c.
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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
52
franklintempleton.com
Semiannual
Report
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
based
on
its
technical
merits.
As
of
April
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. 
d.
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.
Dividend
income
is
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
Funds.
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.
e.
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.
f.
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)
c.
Income
and
Deferred
Taxes
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
53
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
April
30,
2023,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
a
...................................
504,111
$13,759,878
1,345,821
$44,135,823
Shares
issued
in
reinvestment
of
distributions
..........
316,722
8,336,842
880,190
28,029,635
Shares
redeemed
...............................
(520,311)
(14,130,703)
(2,073,989)
(67,693,843)
Net
increase
(decrease)
..........................
300,522
$7,966,017
152,022
$4,471,615
Year
ended
October
31,
2022
Shares
sold
a
...................................
719,382
$19,904,740
3,833,315
$132,100,439
Shares
issued
in
reinvestment
of
distributions
..........
759,014
20,759,034
2,574,503
89,386,752
Shares
redeemed
...............................
(1,178,090)
(32,153,444)
(4,754,830)
(161,576,324)
Net
increase
(decrease)
..........................
300,306
$8,510,330
1,652,988
$59,910,867
Class
C
Class
C
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
...................................
—
$—
35,256
$1,098,203
Shares
issued
in
reinvestment
of
distributions
..........
—
—
18,066
543,939
Shares
redeemed
a
..............................
—
—
(115,304)
(3,552,942)
Net
increase
(decrease)
..........................
—
$—
(61,982)
$(1,910,800)
Year
ended
October
31,
2022
Shares
sold
...................................
—
$—
137,768
$4,615,640
Shares
issued
in
reinvestment
of
distributions
..........
—
—
73,166
2,413,008
Shares
redeemed
a
..............................
—
—
(233,366)
(7,561,090)
Net
increase
(decrease)
..........................
—
$—
(22,432)
$(532,442)
Class
R
Class
R
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
...................................
—
$—
11,069
$365,445
Shares
issued
in
reinvestment
of
distributions
..........
—
—
6,950
222,649
Shares
redeemed
...............................
—
—
(14,590)
(487,499)
Net
increase
(decrease)
..........................
—
$—
3,429
$100,595
Year
ended
October
31,
2022
Shares
sold
...................................
—
$—
19,913
$686,271
Shares
issued
in
reinvestment
of
distributions
..........
—
—
21,753
760,276
Shares
redeemed
...............................
—
—
(32,449)
(1,140,919)
Net
increase
(decrease)
..........................
—
$—
9,217
$305,628
Class
R6
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
54
franklintempleton.com
Semiannual
Report
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
...................................
463,867
$12,933,059
103,196
$3,522,309
Shares
issued
in
reinvestment
of
distributions
..........
16,894
455,015
48,606
1,623,689
Shares
redeemed
...............................
(99,425)
(2,758,924)
(154,325)
(5,300,293)
Net
increase
(decrease)
..........................
381,336
$10,629,150
(2,523)
$(154,295)
Year
ended
October
31,
2022
Shares
sold
...................................
443,820
$12,691,780
242,203
$8,742,484
Shares
issued
in
reinvestment
of
distributions
..........
19,499
543,425
131,944
4,792,208
Shares
redeemed
...............................
(252,888)
(7,099,781)
(234,577)
(8,462,299)
Net
increase
(decrease)
..........................
210,431
$6,135,424
139,570
$5,072,393
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
...................................
449,366
$12,520,019
134,175
$4,697,756
Shares
issued
in
reinvestment
of
distributions
..........
100,780
2,690,820
60,145
2,016,897
Shares
redeemed
...............................
(312,598)
(8,489,663)
(176,968)
(6,025,860)
Net
increase
(decrease)
..........................
237,548
$6,721,176
17,352
$688,793
Year
ended
October
31,
2022
Shares
sold
...................................
569,364
$15,566,231
340,359
$12,456,001
Shares
issued
in
reinvestment
of
distributions
..........
183,267
5,069,161
174,964
6,379,178
Shares
redeemed
...............................
(325,010)
(8,935,762)
(495,504)
(18,016,128)
Net
increase
(decrease)
..........................
427,621
$11,699,630
19,819
$819,051
Franklin
Small
Cap
Value
Fund
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
a
...................................
791,745
$40,829,608
Shares
issued
in
reinvestment
of
distributions
..........
753,089
37,408,743
Shares
redeemed
...............................
(2,017,331)
(104,124,941)
Net
increase
(decrease)
..........................
(472,497)
$(25,886,590)
Year
ended
October
31,
2022
Shares
sold
a
...................................
1,893,858
$102,272,555
Shares
issued
in
reinvestment
of
distributions
..........
2,484,880
137,836,298
Shares
redeemed
...............................
(5,348,480)
(285,399,767)
Net
increase
(decrease)
..........................
(969,742)
$(45,290,914)
Class
C
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
55
franklintempleton.com
Semiannual
Report
Franklin
Small
Cap
Value
Fund
Shares
Amount
Class
C
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
...................................
69,485
$3,034,975
Shares
issued
in
reinvestment
of
distributions
..........
50,791
2,103,768
Shares
redeemed
a
..............................
(285,374)
(12,237,818)
Net
increase
(decrease)
..........................
(165,098)
$(7,099,075)
Year
ended
October
31,
2022
Shares
sold
...................................
117,738
$5,358,331
Shares
issued
in
reinvestment
of
distributions
..........
202,027
9,450,847
Shares
redeemed
a
..............................
(625,299)
(28,180,211)
Net
increase
(decrease)
..........................
(305,534)
$(13,371,033)
Class
R
Class
R
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
...................................
230,577
$11,855,892
Shares
issued
in
reinvestment
of
distributions
..........
71,808
3,518,304
Shares
redeemed
...............................
(292,489)
(14,983,372)
Net
increase
(decrease)
..........................
9,896
$390,824
Year
ended
October
31,
2022
Shares
sold
...................................
377,026
$20,099,136
Shares
issued
in
reinvestment
of
distributions
..........
244,996
13,425,803
Shares
redeemed
...............................
(749,330)
(40,181,882)
Net
increase
(decrease)
..........................
(127,308)
$(6,656,943)
Class
R6
Class
R6
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
...................................
2,951,630
$163,279,915
Shares
issued
in
reinvestment
of
distributions
..........
703,602
37,332,152
Shares
redeemed
...............................
(2,825,544)
(155,527,200)
Net
increase
(decrease)
..........................
829,688
$45,084,867
Year
ended
October
31,
2022
Shares
sold
...................................
6,319,464
$362,704,237
Shares
issued
in
reinvestment
of
distributions
..........
1,849,348
109,222,521
Shares
redeemed
...............................
(5,875,630)
(337,406,108)
Net
increase
(decrease)
..........................
2,293,182
$134,520,650
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
56
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
MicroCap
Value
Fund pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to Franklin
Mutual of
0.75%
per
year
of
the
average
daily
net
assets
of
the
Fund. 
Franklin
Mutual
U.S.
Mid
Cap
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:
Franklin
Small
Cap
Value
Fund
Shares
Amount
Advisor
Class
Shares:
Six
Months
ended
April
30,
2023
Shares
sold
...................................
2,341,083
$128,794,597
Shares
issued
in
reinvestment
of
distributions
..........
725,949
38,607,884
Shares
redeemed
...............................
(3,699,553)
(203,334,439)
Net
increase
(decrease)
..........................
(632,521)
$(35,931,958)
Year
ended
October
31,
2022
Shares
sold
...................................
8,113,577
$446,920,937
Shares
issued
in
reinvestment
of
distributions
..........
2,115,030
125,230,902
Shares
redeemed
...............................
(10,447,907)
(589,569,227)
Net
increase
(decrease)
..........................
(219,300)
$(17,417,388)
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
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
In
excess
of
$15
billion
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
57
franklintempleton.com
Semiannual
Report
Franklin
Small
Cap
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:
For
the
period
ended
April
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
each
of
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
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
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:
For
Franklin
Small
Cap
Value
Fund,
the
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
Annualized
Fee
Rate
Net
Assets
0.750%
Up
to
and
including
$500
million
0.625%
Over
$500
million,
up
to
and
including
$1
billion
0.500%
Over
$1
billion,
up
to
and
including
$5
billion
0.490%
In
excess
of
$5
billion
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
Gross
effective
investment
management
fee
rate
........
0.750%
0.481%
0.545%
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
Class
A
...............................
0.25%
0.25%
0.35%
Class
C
...............................
—%
1.00%
1.00%
Class
R
...............................
—%
0.50%
0.50%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
58
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
April
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
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
April
30,
2023,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$11,348
$23,300
$17,790
CDSC
retained
...........................
$183
$3,355
$2,280
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
Transfer
agent
fees
........................
$63,379
$193,393
$914,134
3.
Transactions
with
Affiliates
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
59
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
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
February
29,
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
April
30,
2023, the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
    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
MicroCap
Value
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.483%
$
20,193,831
$
23,411,677
$
(38,413,375)
$
—
$
—
$
5,192,133
5,192,133
$
223,753
Total
Affiliated
Securities
...
$20,193,831
$23,411,677
$(38,413,375)
$—
$—
$5,192,133
$223,753
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.483%
$30,561,198
$139,253,590
$(104,336,965)
$—
$—
$65,477,823
65,477,823
$990,519
Total
Affiliated
Securities
...
$30,561,198
$139,253,590
$(104,336,965)
$—
$—
$65,477,823
$990,519
Franklin
Small
Cap
Value
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.483%
$139,833,283
$562,217,797
$(508,830,050)
$—
$—
$193,221,030
193,221,030
$2,446,774
Total
Affiliated
Securities
...
$139,833,283
$562,217,797
$(508,830,050)
$—
$—
$193,221,030
$2,446,774
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
60
franklintempleton.com
Semiannual
Report
5.
Income
Taxes
At
April
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
treatment
of
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
April
30,
2023,
were
as
follows:
7.
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
April
30,
2023,
investments
in
“affiliated
companies”
were
as
follows:
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
a
a
a
a
Cost
of
investments
.......................
$180,783,209
$703,476,303
$3,781,713,323
Unrealized
appreciation
.....................
$55,843,367
$110,129,232
$503,650,549
Unrealized
depreciation
.....................
(18,227,944)
(25,982,667)
(296,485,608)
Net
unrealized
appreciation
(depreciation)
.......
$37,615,423
$84,146,565
$207,164,941
Franklin
MicroCap
Value
Fund
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Franklin
Small
Cap
Value
Fund
Purchases
..............................
$47,573,376
$242,539,809
$1,352,193,821
Sales
..................................
$20,570,953
$296,296,627
$1,547,385,435
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
at
End
of
Period
Investment
Income
Franklin
Small
Cap
Value
Fund
Non-Controlled
Affiliates
Dividends
ACI
Worldwide
Inc
....
$
111,134,720
$
36,880,099
$
—
$
—
$
5,700,539
$
153,715,358
6,068,510
$
—
Benchmark
Electronics,
Inc.
............
72,807,149
—
(25,155,314)
(2,830,676)
—
a
—
a
—
a
618,438
Brinker
International,
Inc.
81,893,483
13,066,065
(16,619,185)
(1,388,201)
18,076,480
95,028,642
2,380,477
—
Camden
National
Corp
.
28,416,993
3,849,294
—
—
(8,349,316)
23,916,971
748,575
588,646
Children's
Place
Inc.
(The)
35,834,110
—
—
—
(9,595,893)
26,238,217
885,230
—
Denny's
Corp.
.......
42,995,424
—
(35,195,814)
(1,939,958)
—
a
—
a
—
a
—
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
61
franklintempleton.com
Semiannual
Report
8.
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.
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
April
30,
2023,
the
Funds
did
not
use
the
Global
Credit
Facility.
9.
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)
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
at
End
of
Period
Investment
Income
Franklin
Small
Cap
Value
Fund
(continued)
Non-Controlled
Affiliates
Elementis
plc
.......
$
33,707,697
$
10,432,994
$
—
$
—
$
18,791,181
$
62,931,872
39,868,704
$
—
Great
Lakes
Dredge
&
Dock
Corp
........
29,489,239
—
(25,069,840)
(31,690,386)
27,270,987
—
b
—
—
Green
Plains,
Inc.
....
84,898,985
18,915,115
(10,811,094)
(1,455,956)
14,922,160
106,469,210
3,115,868
—
Hunting
plc
.........
28,146,395
—
(10,410,999)
(6,440,902)
—
a
—
a
—
a
285,736
Knowles
Corp.
.......
62,531,590
—
(9,223,909)
(925,234)
—
a
—
a
—
a
—
McGrath
RentCorp
....
132,308,599
2,969,984
(40,065,524)
8,199,437
—
a
—
a
—
a
953,533
NetScout
Systems,
Inc
.
129,284,413
—
(57,236,810)
4,787,857
—
a
—
a
—
a
—
Total
Affiliated
Securities
(Value
is
11.8%
of
Net
Assets)
..........
$873,448,797
$86,113,551
$(229,788,489)
$(33,684,019)
$66,816,138
$468,300,270
$2,446,353
a
As
of
April
30,
2023,
no
longer
an
affiliate.
b
As
of
April
30,
2023,
no
longer
held.
7.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
62
franklintempleton.com
Semiannual
Report
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
April
30,
2023,
in
valuing
the
Funds'
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
MicroCap
Value
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
.........................
$
213,206,499
$
—
$
—
$
213,206,499
Short
Term
Investments
...................
5,192,133
—
—
5,192,133
Total
Investments
in
Securities
...........
$218,398,632
$—
$—
$218,398,632
Franklin
Mutual
U.S.
Mid
Cap
Value
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
5,881,209
25,228,819
—
31,110,028
Automobile
Components
.................
19,555,742
—
—
19,555,742
Banks
...............................
32,087,324
—
—
32,087,324
Broadline
Retail
.......................
16,791,688
—
—
16,791,688
Building
Products
......................
10,325,571
—
—
10,325,571
Chemicals
...........................
34,401,078
—
—
34,401,078
Commercial
Services
&
Supplies
...........
12,618,756
—
—
12,618,756
Construction
&
Engineering
...............
14,204,389
—
—
14,204,389
Consumer
Finance
.....................
10,402,829
—
—
10,402,829
Containers
&
Packaging
.................
11,119,431
—
—
11,119,431
Electric
Utilities
........................
42,207,772
—
—
42,207,772
Electrical
Equipment
....................
10,823,715
—
—
10,823,715
Electronic
Equipment,
Instruments
&
Components
........................
17,671,584
—
—
17,671,584
Energy
Equipment
&
Services
.............
27,684,701
—
—
27,684,701
Financial
Services
......................
34,521,429
—
—
34,521,429
Food
Products
........................
27,336,986
—
—
27,336,986
Health
Care
Equipment
&
Supplies
.........
5,527,549
—
—
5,527,549
Health
Care
Providers
&
Services
..........
28,960,561
11,266,134
—
40,226,695
Household
Durables
....................
17,640,167
—
—
17,640,167
Independent
Power
and
Renewable
Electricity
Producers
..........................
11,146,652
—
—
11,146,652
Insurance
............................
39,971,029
—
—
39,971,029
Machinery
............................
14,119,285
—
—
14,119,285
Media
...............................
14,370,634
—
—
14,370,634
Metals
&
Mining
.......................
9,302,790
—
—
9,302,790
Office
REITs
..........................
6,697,417
—
—
6,697,417
Oil,
Gas
&
Consumable
Fuels
.............
17,904,721
—
—
17,904,721
Personal
Care
Products
.................
—
12,475,219
—
12,475,219
Pharmaceuticals
.......................
—
12,048,066
—
12,048,066
Professional
Services
...................
45,675,877
—
—
45,675,877
Real
Estate
Management
&
Development
....
26,925,980
—
—
26,925,980
Retail
REITs
..........................
17,757,438
—
—
17,757,438
Semiconductors
&
Semiconductor
Equipment
.
9,244,191
—
—
9,244,191
Software
.............................
15,909,555
—
—
15,909,555
Specialty
Retail
........................
10,796,864
—
—
10,796,864
Textiles,
Apparel
&
Luxury
Goods
..........
16,378,645
—
—
16,378,645
Trading
Companies
&
Distributors
..........
25,163,248
—
—
25,163,248
Short
Term
Investments
...................
65,477,823
—
—
65,477,823
Total
Investments
in
Securities
...........
$726,604,630
$61,018,238
b
$—
$787,622,868
9.
Fair
Value
Measurements
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
63
franklintempleton.com
Semiannual
Report
10.
New
Accounting
Pronouncements
In June
2022,
the FASB
issued
Accounting
Standards
Update
(ASU)
No.
2022-03,
Fair
Value
Measurement
(Topic
820)
–
Fair
Value
Measurement
of
Equity
Securities
Subject
to
Contractual
Sale
Restrictions.
The
amendments
in
the
ASU
clarify
that
a
contractual
restriction
on
the
sale
of
an
equity
security
is
not
considered
part
of
the
unit
of
account
of
the
equity
security
and,
Level
1
Level
2
Level
3
Total
Franklin
Small
Cap
Value
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
19,238,068
$
45,995,781
$
—
$
65,233,849
Automobile
Components
.................
83,093,857
—
—
83,093,857
Banks
...............................
440,996,949
—
—
440,996,949
Building
Products
......................
214,481,895
—
—
214,481,895
Chemicals
...........................
186,292,415
—
—
186,292,415
Commercial
Services
&
Supplies
...........
47,917,843
—
—
47,917,843
Communications
Equipment
..............
68,690,807
—
—
68,690,807
Construction
&
Engineering
...............
96,164,420
—
—
96,164,420
Construction
Materials
..................
40,200,520
—
—
40,200,520
Consumer
Finance
.....................
18,184,508
—
—
18,184,508
Diversified
REITs
......................
44,411,031
—
—
44,411,031
Electric
Utilities
........................
41,172,849
—
—
41,172,849
Electrical
Equipment
....................
56,954,632
—
—
56,954,632
Electronic
Equipment,
Instruments
&
Components
........................
185,250,293
—
—
185,250,293
Energy
Equipment
&
Services
.............
74,280,335
—
—
74,280,335
Food
Products
........................
60,328,324
120,074,316
—
180,402,640
Ground
Transportation
..................
11,689,557
—
—
11,689,557
Health
Care
Equipment
&
Supplies
.........
188,839,165
—
—
188,839,165
Hotel
&
Resort
REITs
...................
67,923,121
—
—
67,923,121
Hotels,
Restaurants
&
Leisure
.............
220,338,537
35,764,027
—
256,102,564
Household
Durables
....................
34,868,942
—
—
34,868,942
Industrial
REITs
.......................
33,488,353
—
—
33,488,353
Insurance
............................
230,843,673
—
—
230,843,673
Leisure
Products
.......................
49,752,059
—
—
49,752,059
Machinery
............................
54,950,795
—
—
54,950,795
Metals
&
Mining
.......................
150,735,532
—
—
150,735,532
Multi-Utilities
..........................
35,208,090
—
—
35,208,090
Office
REITs
..........................
16,730,316
—
—
16,730,316
Oil,
Gas
&
Consumable
Fuels
.............
257,837,280
—
—
257,837,280
Professional
Services
...................
23,007,822
—
—
23,007,822
Real
Estate
Management
&
Development
....
2,112,933
—
—
2,112,933
Semiconductors
&
Semiconductor
Equipment
.
109,348,972
—
—
109,348,972
Software
.............................
153,715,358
—
—
153,715,358
Specialty
Retail
........................
31,659,185
—
—
31,659,185
Textiles,
Apparel
&
Luxury
Goods
..........
72,893,624
21,060,183
—
93,953,807
Trading
Companies
&
Distributors
..........
149,160,867
—
—
149,160,867
Short
Term
Investments
...................
193,221,030
—
—
193,221,030
Total
Investments
in
Securities
...........
$3,765,983,957
$222,894,307
c
$—
$3,988,878,264
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
foreign
securities
valued
at
$61,018,238,
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
$222,894,307,
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.
9.
Fair
Value
Measurements
(continued)
Franklin
Value
Investors
Trust
Notes
to
Financial
Statements
(unaudited)
64
franklintempleton.com
Semiannual
Report
therefore,
should
not
be
considered
in
measuring
fair
value.
The
ASU
is
effective
for
interim
and
annual
reporting
periods
beginning
after
December
15,
2023,
with
the
option
of
early
adoption.
Management
has
reviewed
the
requirements
and
believes
that
the
adoption
of
the
ASU
will
not
have
a
material
impact
on
the
financial
statements.
11.
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.
Abbreviations
Selected
Portfolio
REIT
Real
Estate
Investment
Trust
10.
New
Accounting
Pronouncements
(continued)
Franklin
Value
Investors
Trust
Shareholder
Information
65
franklintempleton.com
Semiannual
Report
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,
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.
FVIT
S
06/23
©
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
and
Shareholder
Letter
Franklin
Value
Investors
Trust
Investment
Manager
Distributor
Shareholder
Services
Franklin
Mutual
Advisers,
LLC
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
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 David W. Niemiec and Ann Torre Bates 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
VALUE INVESTORS TRUST
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  June 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  June 28, 2023
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  June 28, 2023