# EDGAR Filing Document

**Accession Number:** 0000825063
**File Stem:** 0001133228-26-002538
**Filing Date:** 2026-2
**Character Count:** 492950
**Document Hash:** ca911123f4d9f4790dd36c21407c97f7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-26-002538.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0001133228-26-002538

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 146

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**EFFECTIVENESS DATE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FRANKLIN MUTUAL SERIES FUNDS
- **CENTRAL INDEX KEY:** 0000825063

**ORGANIZATION NAME:**
- **EIN:** 222894171
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-05387
- **FILM NUMBER:** 26696589

**BUSINESS ADDRESS:**
- **STREET 1:** 101 JOHN F KENNEDY PARKWAY
- **CITY:** SHORT HILLS
- **STATE:** NJ
- **ZIP:** 07078
- **BUSINESS PHONE:** 973-912-2000

**MAIL ADDRESS:**
- **STREET 1:** 101 JOHN F KENNEDY PARKWAY
- **CITY:** SHORT HILLS
- **STATE:** NJ
- **ZIP:** 07078

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FRANKLIN MUTUAL SERIES FUND INC
- **DATE OF NAME CHANGE:** 19970227

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MUTUAL SERIES FUND INC
- **DATE OF NAME CHANGE:** 19920703

## Series and Classes Contracts Data

### FRANKLIN MUTUAL BEACON FUND (Series ID: S000007860)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000021373 | CLASS A      | TEBIX           |
| C000021375 | CLASS C      | TEMEX           |
| C000021376 | CLASS Z      | BEGRX           |
| C000082421 | CLASS R      |  |
| C000128727 | Class R6     | FMBRX           |

### FRANKLIN MUTUAL GLOBAL DISCOVERY FUND (Series ID: S000007861)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000021377 | CLASS A      | TEDIX           |
| C000021379 | CLASS C      | TEDSX           |
| C000021380 | CLASS Z      | MDISX           |
| C000021381 | CLASS R      | TEDRX           |
| C000128728 | Class R6     | FMDRX           |

### FRANKLIN MUTUAL INTERNATIONAL VALUE FUND (Series ID: S000007862)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000021382 | CLASS A      | TEMIX           |
| C000021384 | CLASS C      | TEURX           |
| C000021385 | CLASS Z      | MEURX           |
| C000082422 | CLASS R      | FMURX           |
| C000128729 | Class R6     | FMEUX           |

### FRANKLIN MUTUAL QUEST FUND (Series ID: S000007863)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000021386 | CLASS A      | TEQIX           |
| C000021388 | CLASS C      | TEMQX           |
| C000021389 | CLASS Z      | MQIFX           |
| C000078832 | CLASS R      | FMQSX           |
| C000128730 | Class R6     | FMQRX           |

### FRANKLIN MUTUAL SHARES FUND (Series ID: S000007864)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000021390 | CLASS A      | TESIX           |
| C000021392 | CLASS C      | TEMTX           |
| C000021393 | CLASS Z      | MUTHX           |
| C000021394 | CLASS R      | TESRX           |
| C000128731 | Class R6     | FMSHX           |

?xml version='1.0' encoding='ASCII'? 2026-01-1474200026700_FranklinMutualBeaconFund_ClassA_TSRAnnual

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM N-CSR**

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number **811-05387**

**Franklin Mutual Series Funds**

(Exact name of registrant as specified in charter)

**101 John F. Kennedy Parkway, Short Hills, NJ 07078-2705**

(Address of principal executive offices) (Zip code)

Alison Baur

Franklin Templeton

One Franklin Parkway

San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: **(210) 912-2100**

Date of fiscal year end: **December 31**

Date of reporting period: **December 31, 2025**

ITEM 1. REPORT TO STOCKHOLDERS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Report to Shareholders is filed herewith

---

| | |
|:---|:---|
| **Franklin Mutual Beacon Fund**  | ![image](img2199_202405220716489.jpg) |
| Class A [TEBIX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Beacon Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class A | $114 | 1.01% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class A shares of Franklin Mutual Beacon Fund returned 25.28%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | Johnson Controls, a building solutions provider, on improving financial results as the chief executive is focused on further streamlining the product portfolio and the broader organization.  |
| ↑ | Retailer Ulta Beauty on robust earnings showing strong growth across its business categories as it benefits from new beauty products. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Property insurer Progressive as growth moderated from peak levels and despite robust underwriting margins and ongoing market share gains. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business.  |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |

---

Franklin Mutual Beacon Fund PAGE 1 476-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT ($** **9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –**

**Class A** 12/31/2015 — 12/31/2025

![image](ts6246img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class A**  | 25.28 | 9.74 | 9.55 |
| **Class A (with sales charge)**  | 18.38 | 8.51 | 8.93 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $3509480758 |
| **Total Number of Portfolio Holdings** | 36 |
| **Total Management Fee Paid** | $22097030 |
| **Portfolio Turnover Rate** | 46.86% |

---

Franklin Mutual Beacon Fund PAGE 2 476-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6246img004.jpg)

\* Does not include derivatives, except purchased options, if any.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Beacon Fund PAGE 3 476-ATSR-0226

9450109431248511425142461478017213151631746518778235261000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417187.04.54.02.11.41.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Beacon Fund**  | ![image](img2199_202405220716489.jpg) |
| Class C [TEMEX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Beacon Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class C | $197 | 1.76% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class C shares of Franklin Mutual Beacon Fund returned 24.30%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | Johnson Controls, a building solutions provider, on improving financial results as the chief executive is focused on further streamlining the product portfolio and the broader organization.  |
| ↑ | Retailer Ulta Beauty on robust earnings showing strong growth across its business categories as it benefits from new beauty products. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Property insurer Progressive as growth moderated from peak levels and despite robust underwriting margins and ongoing market share gains. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business.  |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |

---

Franklin Mutual Beacon Fund PAGE 1 576-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class C** 12/31/2015 — 12/31/2025

![image](ts6247img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class C**  | 24.30 | 8.92 | 8.72 |
| **Class C (with sales charge)**  | 23.30 | 8.92 | 8.72 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $3509480758 |
| **Total Number of Portfolio Holdings** | 36 |
| **Total Management Fee Paid** | $22097030 |
| **Portfolio Turnover Rate** | 46.86% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6247img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual Beacon Fund PAGE 2 576-ATSR-0226

------

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Beacon Fund PAGE 3 576-ATSR-0226

10000114941301711821146271506017402152191739218569230821000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417187.04.54.02.11.41.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Beacon Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R  | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Beacon Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R | $142 | 1.26% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R shares of Franklin Mutual Beacon Fund returned 24.97%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | Johnson Controls, a building solutions provider, on improving financial results as the chief executive is focused on further streamlining the product portfolio and the broader organization.  |
| ↑ | Retailer Ulta Beauty on robust earnings showing strong growth across its business categories as it benefits from new beauty products. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Property insurer Progressive as growth moderated from peak levels and despite robust underwriting margins and ongoing market share gains. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business.  |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |

---

Franklin Mutual Beacon Fund PAGE 1 876-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R** 12/31/2015 — 12/31/2025

![image](ts6249img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R**  | 24.97 | 9.47 | 9.28 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $3509480758 |
| **Total Number of Portfolio Holdings** | 36 |
| **Total Management Fee Paid** | $22097030 |
| **Portfolio Turnover Rate** | 46.86% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6249img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual Beacon Fund PAGE 2 876-ATSR-0226

------

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Beacon Fund PAGE 3 876-ATSR-0226

------

---

| | |
|:---|:---|
| **Franklin Mutual Beacon Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R6 [FMBRX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Beacon Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R6 | $81 | 0.72% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R6 shares of Franklin Mutual Beacon Fund returned 25.57%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | Johnson Controls, a building solutions provider, on improving financial results as the chief executive is focused on further streamlining the product portfolio and the broader organization.  |
| ↑ | Retailer Ulta Beauty on robust earnings showing strong growth across its business categories as it benefits from new beauty products. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Property insurer Progressive as growth moderated from peak levels and despite robust underwriting margins and ongoing market share gains. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business.  |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |

---

Franklin Mutual Beacon Fund PAGE 1 376-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R6** 12/31/2015 — 12/31/2025

![image](ts6248img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R6**  | 25.57 | 10.07 | 9.89 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $3509480758 |
| **Total Number of Portfolio Holdings** | 36 |
| **Total Management Fee Paid** | $22097030 |
| **Portfolio Turnover Rate** | 46.86% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6248img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual Beacon Fund PAGE 2 376-ATSR-0226

------

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Beacon Fund PAGE 3 376-ATSR-0226

10000116201329512208152751589918575164191896120456256871000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417187.04.54.02.11.41.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Beacon Fund**  | ![image](img2199_202405220716489.jpg) |
| Class Z [BEGRX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Beacon Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class Z | $86 | 0.76% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class Z shares of Franklin Mutual Beacon Fund returned 25.57%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | Johnson Controls, a building solutions provider, on improving financial results as the chief executive is focused on further streamlining the product portfolio and the broader organization.  |
| ↑ | Retailer Ulta Beauty on robust earnings showing strong growth across its business categories as it benefits from new beauty products. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Property insurer Progressive as growth moderated from peak levels and despite robust underwriting margins and ongoing market share gains. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business.  |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |

---

Franklin Mutual Beacon Fund PAGE 1 76-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class Z** 12/31/2015 — 12/31/2025

![image](ts6250img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class Z**  | 25.57 | 10.01 | 9.83 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $3509480758 |
| **Total Number of Portfolio Holdings** | 36 |
| **Total Management Fee Paid** | $22097030 |
| **Portfolio Turnover Rate** | 46.86% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6250img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual Beacon Fund PAGE 2 76-ATSR-0226

------

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Beacon Fund PAGE 3 76-ATSR-0226

10000116111328212188152301585118495163371886720343255451000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417187.04.54.02.11.41.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Global Discovery Fund**  | ![image](img2199_202405220716489.jpg) |
| Class A [TEDIX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Global Discovery Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class A<sup>1</sup>  | $134 | 1.20% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

1 Includes non-recurring merger related expenses. Excluding these costs, net expenses would have been unchanged.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class A shares of Franklin Mutual Global Discovery Fund returned 23.37%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism that it can benefit from government and private sector investments in infrastructure and defense. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Global Discovery Fund PAGE 1 477-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT ($** **9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –**

**Class A** 12/31/2015 — 12/31/2025

![image](ts6234img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class A**  | 23.37 | 11.97 | 8.65 |
| **Class A (with sales charge)**  | 16.57 | 10.71 | 8.04 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $9468644891 |
| **Total Number of Portfolio Holdings** | 65 |
| **Total Management Fee Paid** | $76975414 |
| **Portfolio Turnover Rate** | 42.28% |

---

Franklin Mutual Global Discovery Fund PAGE 2 477-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6234img004.jpg)

\* Does not include derivatives, except purchased options, if any.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Global Discovery Fund PAGE 3 477-ATSR-0226

9450106371165410373129011230614694139611679017558216611000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417154.09.58.27.25.12.12.01.91.81.81.71.61.41.7 ------

---

| | |
|:---|:---|
| **Franklin Mutual Global Discovery Fund**  | ![image](img2199_202405220716489.jpg) |
| Class C [TEDSX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Global Discovery Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class C<sup>1</sup>  | $217 | 1.95% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

1 Includes non-recurring merger related expenses. Excluding these costs, net expenses would have been unchanged.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class C shares of Franklin Mutual Global Discovery Fund returned 22.44%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism that it can benefit from government and private sector investments in infrastructure and defense. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Global Discovery Fund PAGE 1 577-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class C** 12/31/2015 — 12/31/2025

![image](ts6236img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class C**  | 22.44 | 11.14 | 7.83 |
| **Class C (with sales charge)**  | 21.44 | 11.14 | 7.83 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $9468644891 |
| **Total Number of Portfolio Holdings** | 65 |
| **Total Management Fee Paid** | $76975414 |
| **Portfolio Turnover Rate** | 42.28% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6236img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual Global Discovery Fund PAGE 2 577-ATSR-0226

------

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Global Discovery Fund PAGE 3 577-ATSR-0226

10000111701215010729132431253814857140111672817363212591000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417154.09.58.27.25.12.12.01.91.81.81.71.61.41.7 ------

---

| | |
|:---|:---|
| **Franklin Mutual Global Discovery Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R [TEDRX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Global Discovery Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R<sup>1</sup>  | $162 | 1.45% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

1 Includes non-recurring merger related expenses. Excluding these costs, net expenses would have been unchanged.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R shares of Franklin Mutual Global Discovery Fund returned 23.08%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism that it can benefit from government and private sector investments in infrastructure and defense. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Global Discovery Fund PAGE 1 877-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R** 12/31/2015 — 12/31/2025

![image](ts6239img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R**  | 23.08 | 11.70 | 8.38 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $9468644891 |
| **Total Number of Portfolio Holdings** | 65 |
| **Total Management Fee Paid** | $76975414 |
| **Portfolio Turnover Rate** | 42.28% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6239img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual Global Discovery Fund PAGE 2 877-ATSR-0226

------

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Global Discovery Fund PAGE 3 877-ATSR-0226

10000112281227310894135181285915315145131741718169223621000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417154.09.58.27.25.12.12.01.91.81.81.71.61.41.7 ------

---

| | |
|:---|:---|
| **Franklin Mutual Global Discovery Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R6 [FMDRX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Global Discovery Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R6<sup>1</sup>  | $100 | 0.89% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

1 Includes non-recurring merger related expenses. Excluding these costs, net expenses would have been unchanged.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R6 shares of Franklin Mutual Global Discovery Fund returned 23.73%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism that it can benefit from government and private sector investments in infrastructure and defense. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Global Discovery Fund PAGE 1 377-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R6** 12/31/2015 — 12/31/2025

![image](ts6238img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R6**  | 23.73 | 12.35 | 9.03 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $9468644891 |
| **Total Number of Portfolio Holdings** | 65 |
| **Total Management Fee Paid** | $76975414 |
| **Portfolio Turnover Rate** | 42.28% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6238img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual Global Discovery Fund PAGE 2 377-ATSR-0226

------

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Global Discovery Fund PAGE 3 377-ATSR-0226

10000113021242911103138561326415896151521828619187237401000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417154.09.58.27.25.12.12.01.91.81.81.71.61.41.7 ------

---

| | |
|:---|:---|
| **Franklin Mutual Global Discovery Fund**  | ![image](img2199_202405220716489.jpg) |
| Class Z [MDISX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Global Discovery Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class Z<sup>1</sup>  | $106 | 0.95% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

1 Includes non-recurring merger related expenses. Excluding these costs, net expenses would have been unchanged.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class Z shares of Franklin Mutual Global Discovery Fund returned 23.67%. The Fund compares its performance to the MSCI World Value Index-NR, which returned 20.79% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism that it can benefit from government and private sector investments in infrastructure and defense. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Global Discovery Fund PAGE 1 77-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class Z** 12/31/2015 — 12/31/2025

![image](ts6240img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class Z**  | 23.67 | 12.25 | 8.92 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $9468644891 |
| **Total Number of Portfolio Holdings** | 65 |
| **Total Management Fee Paid** | $76975414 |
| **Portfolio Turnover Rate** | 42.28% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6240img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual Global Discovery Fund PAGE 2 77-ATSR-0226

------

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Global Discovery Fund PAGE 3 77-ATSR-0226

10000112861239711060137921318815783150351813019007235071000010786133721211315335178282113317252210822476930302100001123313154117361428814122172211609817951200102417154.09.58.27.25.12.12.01.91.81.81.71.61.41.7 ------

---

| | |
|:---|:---|
| **Franklin Mutual International Value Fund**  | ![image](img2199_202405220716489.jpg) |
| Class A [TEMIX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual International Value Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class A | $145 | 1.21% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class A shares of Franklin Mutual International Value Fund returned 39.63%. The Fund compares its performance to the MSCI EAFE Value Index-NR, which returned 42.25% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism it can benefit from government and private sector investments in infrastructure and defense. |
| ↑ | U.K.-based aerospace and defence company Babcock International on optimism that it may benefit from a step-up in European defense spending. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Agricultural equipment maker CNH Industrial after an unusually negative sales mix, a big tariff headwind and persistently weak demand. |
| ↓ | Energy services firm Schlumberger (SLB), given ongoing oil market uncertainties, tariffs and weaker global economic growth which weighed on upstream investment and demand for its services.  |
| ↓ | Japanese medical device maker Olympus amid concerns about sluggish growth in China and ongoing U.S. Food and Drug Administration inspections which are constraining the business. |

---

Franklin Mutual International Value Fund PAGE 1 478-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT ($** **9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –**

**Class A** 12/31/2015 — 12/31/2025

![image](ts6241img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class A**  | 39.63 | 14.12 | 8.21 |
| **Class A (with sales charge)**  | 31.94 | 12.83 | 7.60 |
| **MSCI All Country World ex-U.S. Index-NR**  | 32.39 | 7.91 | 8.41 |
| **MSCI EAFE Value Index-NR**  | 42.25 | 13.37 | 8.69 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

Effective May 1, 2023, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $1247427720 |
| **Total Number of Portfolio Holdings** | 55 |
| **Total Management Fee Paid** | $7904803 |
| **Portfolio Turnover Rate** | 51.25% |

---

Franklin Mutual International Value Fund PAGE 2 478-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6241img004.jpg)

\* Does not include derivatives, except purchased options, if any.

**HOW HAS THE FUND CHANGED?**

Effective May 1, 2025, Todd Ostrow stepped down as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual International Value Fund PAGE 3 478-ATSR-0226

94509650106299428115011075312499123771441314903208091000010450132911140413857153331653313887160561694522432100001050212754108701261812287136251286415302161722300420.317.213.68.67.96.02.92.52.12.02.02.01.91.81.81.81.51.31.01.8 ------

---

| | |
|:---|:---|
| **Franklin Mutual International Value Fund**  | ![image](img2199_202405220716489.jpg) |
| Class C [TEURX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual International Value Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class C | $234 | 1.96% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class C shares of Franklin Mutual International Value Fund returned 38.60%. The Fund compares its performance to the MSCI EAFE Value Index-NR, which returned 42.25% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism it can benefit from government and private sector investments in infrastructure and defense. |
| ↑ | U.K.-based aerospace and defence company Babcock International on optimism that it may benefit from a step-up in European defense spending. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Agricultural equipment maker CNH Industrial after an unusually negative sales mix, a big tariff headwind and persistently weak demand. |
| ↓ | Energy services firm Schlumberger (SLB), given ongoing oil market uncertainties, tariffs and weaker global economic growth which weighed on upstream investment and demand for its services.  |
| ↓ | Japanese medical device maker Olympus amid concerns about sluggish growth in China and ongoing U.S. Food and Drug Administration inspections which are constraining the business. |

---

Franklin Mutual International Value Fund PAGE 1 578-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class C** 12/31/2015 — 12/31/2025

![image](ts6242img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class C**  | 38.60 | 13.26 | 7.40 |
| **Class C (with sales charge)**  | 37.60 | 13.26 | 7.40 |
| **MSCI All Country World ex-U.S. Index-NR**  | 32.39 | 7.91 | 8.41 |
| **MSCI EAFE Value Index-NR**  | 42.25 | 13.37 | 8.69 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Effective May 1, 2023, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $1247427720 |
| **Total Number of Portfolio Holdings** | 55 |
| **Total Management Fee Paid** | $7904803 |
| **Portfolio Turnover Rate** | 51.25% |

---

Franklin Mutual International Value Fund PAGE 2 578-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6242img004.jpg)

\* Does not include derivatives, except purchased options, if any.

**HOW HAS THE FUND CHANGED?**

Effective May 1, 2025, Todd Ostrow stepped down as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual International Value Fund PAGE 3 578-ATSR-0226

1000010132110819756118051096112640124251436014736204241000010450132911140413857153331653313887160561694522432100001050212754108701261812287136251286415302161722300420.317.213.68.67.96.02.92.52.12.02.02.01.91.81.81.81.51.31.01.8 ------

---

| | |
|:---|:---|
| **Franklin Mutual International Value Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R [FMURX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual International Value Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R | $175 | 1.46% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R shares of Franklin Mutual International Value Fund returned 39.30%. The Fund compares its performance to the MSCI EAFE Value Index-NR, which returned 42.25% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism it can benefit from government and private sector investments in infrastructure and defense. |
| ↑ | U.K.-based aerospace and defence company Babcock International on optimism that it may benefit from a step-up in European defense spending. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Agricultural equipment maker CNH Industrial after an unusually negative sales mix, a big tariff headwind and persistently weak demand. |
| ↓ | Energy services firm Schlumberger (SLB), given ongoing oil market uncertainties, tariffs and weaker global economic growth which weighed on upstream investment and demand for its services.  |
| ↓ | Japanese medical device maker Olympus amid concerns about sluggish growth in China and ongoing U.S. Food and Drug Administration inspections which are constraining the business. |

---

Franklin Mutual International Value Fund PAGE 1 878-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R** 12/31/2015 — 12/31/2025

![image](ts6244img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R**  | 39.30 | 13.83 | 7.94 |
| **MSCI All Country World ex-U.S. Index-NR**  | 32.39 | 7.91 | 8.41 |
| **MSCI EAFE Value Index-NR**  | 42.25 | 13.37 | 8.69 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Effective May 1, 2023, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $1247427720 |
| **Total Number of Portfolio Holdings** | 55 |
| **Total Management Fee Paid** | $7904803 |
| **Portfolio Turnover Rate** | 51.25% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6244img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual International Value Fund PAGE 2 878-ATSR-0226

------

**HOW HAS THE FUND CHANGED?**

Effective May 1, 2025, Todd Ostrow stepped down as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual International Value Fund PAGE 3 878-ATSR-0226

1000010186111969904120541123913159129971509215569216881000010450132911140413857153331653313887160561694522432100001050212754108701261812287136251286415302161722300420.317.213.68.67.96.02.92.52.12.02.02.01.91.81.81.81.51.31.01.8 ------

---

| | |
|:---|:---|
| **Franklin Mutual International Value Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R6 [FMEUX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual International Value Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R6 | $104 | 0.87% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R6 shares of Franklin Mutual International Value Fund returned 40.11%. The Fund compares its performance to the MSCI EAFE Value Index-NR, which returned 42.25% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism it can benefit from government and private sector investments in infrastructure and defense. |
| ↑ | U.K.-based aerospace and defence company Babcock International on optimism that it may benefit from a step-up in European defense spending. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Agricultural equipment maker CNH Industrial after an unusually negative sales mix, a big tariff headwind and persistently weak demand. |
| ↓ | Energy services firm Schlumberger (SLB), given ongoing oil market uncertainties, tariffs and weaker global economic growth which weighed on upstream investment and demand for its services.  |
| ↓ | Japanese medical device maker Olympus amid concerns about sluggish growth in China and ongoing U.S. Food and Drug Administration inspections which are constraining the business. |

---

Franklin Mutual International Value Fund PAGE 1 378-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R6** 12/31/2015 — 12/31/2025

![image](ts6243img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R6**  | 40.11 | 14.49 | 8.60 |
| **MSCI All Country World ex-U.S. Index-NR**  | 32.39 | 7.91 | 8.41 |
| **MSCI EAFE Value Index-NR**  | 42.25 | 13.37 | 8.69 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Effective May 1, 2023, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $1247427720 |
| **Total Number of Portfolio Holdings** | 55 |
| **Total Management Fee Paid** | $7904803 |
| **Portfolio Turnover Rate** | 51.25% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6243img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual International Value Fund PAGE 2 378-ATSR-0226

------

**HOW HAS THE FUND CHANGED?**

Effective May 1, 2025, Todd Ostrow stepped down as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual International Value Fund PAGE 3 378-ATSR-0226

10000102531134310101123591160513652135681584816442230381000010450132911140413857153331653313887160561694522432100001050212754108701261812287136251286415302161722300420.317.213.68.67.96.02.92.52.12.02.02.01.91.81.81.81.51.31.01.8 ------

---

| | |
|:---|:---|
| **Franklin Mutual International Value Fund**  | ![image](img2199_202405220716489.jpg) |
| Class Z [MEURX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual International Value Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class Z | $115 | 0.96% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class Z shares of Franklin Mutual International Value Fund returned 39.94%. The Fund compares its performance to the MSCI EAFE Value Index-NR, which returned 42.25% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Deutsche Bank on strength in its fixed income business, better returns at its private bank and optimism it can benefit from government and private sector investments in infrastructure and defense. |
| ↑ | U.K.-based aerospace and defence company Babcock International on optimism that it may benefit from a step-up in European defense spending. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Agricultural equipment maker CNH Industrial after an unusually negative sales mix, a big tariff headwind and persistently weak demand. |
| ↓ | Energy services firm Schlumberger (SLB), given ongoing oil market uncertainties, tariffs and weaker global economic growth which weighed on upstream investment and demand for its services.  |
| ↓ | Japanese medical device maker Olympus amid concerns about sluggish growth in China and ongoing U.S. Food and Drug Administration inspections which are constraining the business. |

---

Franklin Mutual International Value Fund PAGE 1 78-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class Z** 12/31/2015 — 12/31/2025

![image](ts6245img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class Z**  | 39.94 | 14.39 | 8.49 |
| **MSCI All Country World ex-U.S. Index-NR**  | 32.39 | 7.91 | 8.41 |
| **MSCI EAFE Value Index-NR**  | 42.25 | 13.37 | 8.69 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Effective May 1, 2023, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $1247427720 |
| **Total Number of Portfolio Holdings** | 55 |
| **Total Management Fee Paid** | $7904803 |
| **Portfolio Turnover Rate** | 51.25% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6245img004.jpg)

\* Does not include derivatives, except purchased options, if any.

Franklin Mutual International Value Fund PAGE 2 78-ATSR-0226

------

**HOW HAS THE FUND CHANGED?**

Effective May 1, 2025, Todd Ostrow stepped down as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual International Value Fund PAGE 3 78-ATSR-0226

10000102401131110053122941152813429133351556316135225801000010450132911140413857153331653313887160561694522432100001050212754108701261812287136251286415302161722300420.317.213.68.67.96.02.92.52.12.02.02.01.91.81.81.81.51.31.01.8 ------

---

| | |
|:---|:---|
| **Franklin Mutual Quest Fund**  | ![image](img2199_202405220716489.jpg) |
| Class A [TEQIX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Quest Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class A | $111 | 1.02% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class A shares of Franklin Mutual Quest Fund returned 17.34%. The Fund compares its performance to the Blended Benchmark†, the MSCI World Value Index-NR and the Bloomberg U.S. Corporate High Yield Index, which returned 17.04%, 20.79% and 8.62%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Sorenson Communications, a provider of video and captioned telephone services for deaf and hard-of-hearing individuals, amid declining use of its services. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Quest Fund PAGE 1 475-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT ($** **9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –**

**Class A** 12/31/2015 — 12/31/2025

![image](ts6200img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class A**  | 17.34 | 7.74 | 6.24 |
| **Class A (with sales charge)**  | 10.88 | 6.53 | 5.64 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **Blended Benchmark**<sup>†</sup>  | 17.04 | 9.35 | 8.52 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |
| **Bloomberg U.S. Corporate High Yield Index**  | 8.62 | 4.51 | 6.53 |

---

† The
 Fund's Blended Benchmark is comprised of 70% MSCI World Value Index-NR and 30% Bloomberg U.S. Corporate High Yield Index.

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $2700151418 |
| **Total Number of Portfolio Holdings** | 94 |
| **Total Management Fee Paid** | $17709970 |
| **Portfolio Turnover Rate** | 50.37% |

---

Franklin Mutual Quest Fund PAGE 2 475-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6200img004.jpg)

\* Does not include derivatives, except purchased options, if any.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Quest Fund PAGE 3 475-ATSR-0226

945010966117281086512185119261327712326135911476117320100001078613372121131533517828211331725221082247693030210000113811299211932142671448816928156051750319351226491000011233131541173614288141221722116098179512001024171100001171312592123301409515098158951411616014173261882073.04.13.83.13.02.61.61.51.41.41.41.12.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Quest Fund**  | ![image](img2199_202405220716489.jpg) |
| Class C [TEMQX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Quest Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class C | $192 | 1.77% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class C shares of Franklin Mutual Quest Fund returned 16.47%. The Fund compares its performance to the Blended Benchmark†, the MSCI World Value Index-NR and the Bloomberg U.S. Corporate High Yield Index, which returned 17.04%, 20.79% and 8.62%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Sorenson Communications, a provider of video and captioned telephone services for deaf and hard-of-hearing individuals, amid declining use of its services. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Quest Fund PAGE 1 575-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class C** 12/31/2015 — 12/31/2025

![image](ts6202img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class C**  | 16.47 | 6.93 | 5.44 |
| **Class C (with sales charge)**  | 15.47 | 6.93 | 5.44 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **Blended Benchmark**<sup>†</sup>  | 17.04 | 9.35 | 8.52 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |
| **Bloomberg U.S. Corporate High Yield Index**  | 8.62 | 4.51 | 6.53 |

---

† The
 Fund's Blended Benchmark is comprised of 70% MSCI World Value Index-NR and 30% Bloomberg U.S. Corporate High Yield Index.

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $2700151418 |
| **Total Number of Portfolio Holdings** | 94 |
| **Total Management Fee Paid** | $17709970 |
| **Portfolio Turnover Rate** | 50.37% |

---

Franklin Mutual Quest Fund PAGE 2 575-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6202img004.jpg)

\* Does not include derivatives, except purchased options, if any.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Quest Fund PAGE 3 575-ATSR-0226

1000011510122201124112507121541342812370135411459316997100001078613372121131533517828211331725221082247693030210000113811299211932142671448816928156051750319351226491000011233131541173614288141221722116098179512001024171100001171312592123301409515098158951411616014173261882073.04.13.83.13.02.61.61.51.41.41.41.12.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Quest Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R [FMQSX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Quest Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R | $139 | 1.28% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R shares of Franklin Mutual Quest Fund returned 17.05%. The Fund compares its performance to the Blended Benchmark†, the MSCI World Value Index-NR and the Bloomberg U.S. Corporate High Yield Index, which returned 17.04%, 20.79% and 8.62%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Sorenson Communications, a provider of video and captioned telephone services for deaf and hard-of-hearing individuals, amid declining use of its services. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Quest Fund PAGE 1 875-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R** 12/31/2015 — 12/31/2025

![image](ts6206img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R**  | 17.05 | 7.46 | 5.97 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **Blended Benchmark**<sup>†</sup>  | 17.04 | 9.35 | 8.52 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |
| **Bloomberg U.S. Corporate High Yield Index**  | 8.62 | 4.51 | 6.53 |

---

† The
 Fund's Blended Benchmark is comprised of 70% MSCI World Value Index-NR and 30% Bloomberg U.S. Corporate High Yield Index.

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $2700151418 |
| **Total Number of Portfolio Holdings** | 94 |
| **Total Management Fee Paid** | $17709970 |
| **Portfolio Turnover Rate** | 50.37% |

---

Franklin Mutual Quest Fund PAGE 2 875-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6206img004.jpg)

\* Does not include derivatives, except purchased options, if any.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Quest Fund PAGE 3 875-ATSR-0226

1000011569123471140812762124591384412814140971526217864100001078613372121131533517828211331725221082247693030210000113811299211932142671448816928156051750319351226491000011233131541173614288141221722116098179512001024171100001171312592123301409515098158951411616014173261882073.04.13.83.13.02.61.61.51.41.41.41.12.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Quest Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R6 [FMQRX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Quest Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R6 | $79 | 0.73% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R6 shares of Franklin Mutual Quest Fund returned 17.71%. The Fund compares its performance to the Blended Benchmark†, the MSCI World Value Index-NR and the Bloomberg U.S. Corporate High Yield Index, which returned 17.04%, 20.79% and 8.62%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Sorenson Communications, a provider of video and captioned telephone services for deaf and hard-of-hearing individuals, amid declining use of its services. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Quest Fund PAGE 1 347-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R6** 12/31/2015 — 12/31/2025

![image](ts6204img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R6**  | 17.71 | 8.06 | 6.57 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **Blended Benchmark**<sup>†</sup>  | 17.04 | 9.35 | 8.52 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |
| **Bloomberg U.S. Corporate High Yield Index**  | 8.62 | 4.51 | 6.53 |

---

† The
 Fund's Blended Benchmark is comprised of 70% MSCI World Value Index-NR and 30% Bloomberg U.S. Corporate High Yield Index.

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $2700151418 |
| **Total Number of Portfolio Holdings** | 94 |
| **Total Management Fee Paid** | $17709970 |
| **Portfolio Turnover Rate** | 50.37% |

---

Franklin Mutual Quest Fund PAGE 2 347-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6204img004.jpg)

\* Does not include derivatives, except purchased options, if any.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Quest Fund PAGE 3 347-ATSR-0226

1000011644124921161413055128211432513340147501605718900100001078613372121131533517828211331725221082247693030210000113811299211932142671448816928156051750319351226491000011233131541173614288141221722116098179512001024171100001171312592123301409515098158951411616014173261882073.04.13.83.13.02.61.61.51.41.41.41.12.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Quest Fund**  | ![image](img2199_202405220716489.jpg) |
| Class Z [MQIFX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Quest Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class Z | $84 | 0.77% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class Z shares of Franklin Mutual Quest Fund returned 17.64%. The Fund compares its performance to the Blended Benchmark†, the MSCI World Value Index-NR and the Bloomberg U.S. Corporate High Yield Index, which returned 17.04%, 20.79% and 8.62%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | South Korean technology company Samsung Electronics on solid earnings and optimism about both a rebound in the memory chip cycle and its artificial intelligence exposure. |
| ↑ | Google parent Alphabet on accelerating growth in search, YouTube and its cloud business as well as optimism about its artificial intelligence model. |
| ↑ | U.K.-listed insurer Prudential as it benefits from strong growth in the Asia-Pacific region and its management team focuses on capital discipline, growth and cash generation. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Sorenson Communications, a provider of video and captioned telephone services for deaf and hard-of-hearing individuals, amid declining use of its services. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Quest Fund PAGE 1 75-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class Z** 12/31/2015 — 12/31/2025

![image](ts6207img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class Z**  | 17.64 | 8.00 | 6.50 |
| **MSCI All Country World Index-NR**  | 22.34 | 11.19 | 11.72 |
| **Blended Benchmark**<sup>†</sup>  | 17.04 | 9.35 | 8.52 |
| **MSCI World Value Index-NR**  | 20.79 | 11.35 | 9.23 |
| **Bloomberg U.S. Corporate High Yield Index**  | 8.62 | 4.51 | 6.53 |

---

† The
 Fund's Blended Benchmark is comprised of 70% MSCI World Value Index-NR and 30% Bloomberg U.S. Corporate High Yield Index.

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $2700151418 |
| **Total Number of Portfolio Holdings** | 94 |
| **Total Management Fee Paid** | $17709970 |
| **Portfolio Turnover Rate** | 50.37% |

---

Franklin Mutual Quest Fund PAGE 2 75-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6207img004.jpg)

\* Does not include derivatives, except purchased options, if any.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Quest Fund PAGE 3 75-ATSR-0226

1000011626124701157913015127761425513277146721596418779100001078613372121131533517828211331725221082247693030210000113811299211932142671448816928156051750319351226491000011233131541173614288141221722116098179512001024171100001171312592123301409515098158951411616014173261882073.04.13.83.13.02.61.61.51.41.41.41.12.0 ------

---

| | |
|:---|:---|
| **Franklin Mutual Shares Fund**  | ![image](img2199_202405220716489.jpg) |
| Class A [TESIX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Shares Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class A | $105 | 0.99% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class A shares of Franklin Mutual Shares Fund returned 11.46%. The Fund compares its performance to the Russell 1000 Value Index, which returned 15.91% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Retailer Dollar General as sales growth was strong and the company took market share by focusing on improving the employee and consumer experience. |
| ↑ | CVS Health on solid recent earnings results in its health insurance and pharmacy businesses and optimism its health insurance business should benefit from stabilizing medical costs. |
| ↑ | British American Tobacco on strength in its new product categories, bigger share buybacks and more favorable regulatory environment. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina, given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Shares Fund PAGE 1 474-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT ($** **9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –**

**Class A** 12/31/2015 — 12/31/2025

![image](ts6188img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class A**  | 11.46 | 9.22 | 7.55 |
| **Class A (with sales charge)**  | 5.32 | 7.99 | 6.94 |
| **Russell 3000 Index**  | 17.15 | 13.15 | 14.28 |
| **Russell 1000 Value Index**  | 15.91 | 11.33 | 10.53 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $7018316385 |
| **Total Number of Portfolio Holdings** | 63 |
| **Total Management Fee Paid** | $46452226 |
| **Portfolio Turnover Rate** | 51.72% |

---

Franklin Mutual Shares Fund PAGE 2 474-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup><sup>,</sup><sup>†</sup> **(% of Total Investments)**

![image](ts6188img004.jpg)

\* Does not include derivatives, except purchased options, if any.

† Certain
 categories may represent less than 0.1%.

**HOW HAS THE FUND CHANGED?**

Effective March 31, 2025, Aman Gupta, CFA was added as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Shares Fund PAGE 3 474-ATSR-0226

9450109261182210737131921258614986138841577817550195611000011274136561294016954204952575420808262093244838012100001173413337122351548215915199191841820529234782721320.016.114.09.87.97.86.35.55.43.53.50.00.2 ------

---

| | |
|:---|:---|
| **Franklin Mutual Shares Fund**  | ![image](img2199_202405220716489.jpg) |
| Class C [TEMTX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Shares Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class C | $183 | 1.74% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class C shares of Franklin Mutual Shares Fund returned 10.61%. The Fund compares its performance to the Russell 1000 Value Index, which returned 15.91% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Retailer Dollar General as sales growth was strong and the company took market share by focusing on improving the employee and consumer experience. |
| ↑ | CVS Health on solid recent earnings results in its health insurance and pharmacy businesses and optimism its health insurance business should benefit from stabilizing medical costs. |
| ↑ | British American Tobacco on strength in its new product categories, bigger share buybacks and more favorable regulatory environment. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina, given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Shares Fund PAGE 1 574-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class C** 12/31/2015 — 12/31/2025

![image](ts6190img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class C**  | 10.61 | 8.41 | 6.74 |
| **Class C (with sales charge)**  | 9.61 | 8.41 | 6.74 |
| **Russell 3000 Index**  | 17.15 | 13.15 | 14.28 |
| **Russell 1000 Value Index**  | 15.91 | 11.33 | 10.53 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $7018316385 |
| **Total Number of Portfolio Holdings** | 63 |
| **Total Management Fee Paid** | $46452226 |
| **Portfolio Turnover Rate** | 51.72% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup><sup>,</sup><sup>†</sup> **(% of Total Investments)**

![image](ts6190img004.jpg)

\* Does not include derivatives, except purchased options, if any.

† Certain
 categories may represent less than 0.1%.

Franklin Mutual Shares Fund PAGE 2 574-ATSR-0226

------

**HOW HAS THE FUND CHANGED?**

Effective March 31, 2025, Aman Gupta, CFA was added as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Shares Fund PAGE 3 574-ATSR-0226

10000114771232311107135421282615151139331572417362192051000011274136561294016954204952575420808262093244838012100001173413337122351548215915199191841820529234782721320.016.114.09.87.97.86.35.55.43.53.50.00.2 ------

---

| | |
|:---|:---|
| **Franklin Mutual Shares Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R [TESRX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Shares Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R | $131 | 1.24% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R shares of Franklin Mutual Shares Fund returned 11.16%. The Fund compares its performance to the Russell 1000 Value Index, which returned 15.91% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Retailer Dollar General as sales growth was strong and the company took market share by focusing on improving the employee and consumer experience. |
| ↑ | CVS Health on solid recent earnings results in its health insurance and pharmacy businesses and optimism its health insurance business should benefit from stabilizing medical costs. |
| ↑ | British American Tobacco on strength in its new product categories, bigger share buybacks and more favorable regulatory environment. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina, given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Shares Fund PAGE 1 874-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R** 12/31/2015 — 12/31/2025

![image](ts6194img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R**  | 11.16 | 8.94 | 7.28 |
| **Russell 3000 Index**  | 17.15 | 13.15 | 14.28 |
| **Russell 1000 Value Index**  | 15.91 | 11.33 | 10.53 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $7018316385 |
| **Total Number of Portfolio Holdings** | 63 |
| **Total Management Fee Paid** | $46452226 |
| **Portfolio Turnover Rate** | 51.72% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup><sup>,</sup><sup>†</sup> **(% of Total Investments)**

![image](ts6194img004.jpg)

\* Does not include derivatives, except purchased options, if any.

† Certain
 categories may represent less than 0.1%.

Franklin Mutual Shares Fund PAGE 2 874-ATSR-0226

------

**HOW HAS THE FUND CHANGED?**

Effective March 31, 2025, Aman Gupta, CFA was added as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Shares Fund PAGE 3 874-ATSR-0226

10000115311244911277138201315715623144361636518163201901000011274136561294016954204952575420808262093244838012100001173413337122351548215915199191841820529234782721320.016.114.09.87.97.86.35.55.43.53.50.00.2 ------

---

| | |
|:---|:---|
| **Franklin Mutual Shares Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R6 [FMSHX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Shares Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R6 | $74 | 0.70% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class R6 shares of Franklin Mutual Shares Fund returned 11.79%. The Fund compares its performance to the Russell 1000 Value Index, which returned 15.91% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Retailer Dollar General as sales growth was strong and the company took market share by focusing on improving the employee and consumer experience. |
| ↑ | CVS Health on solid recent earnings results in its health insurance and pharmacy businesses and optimism its health insurance business should benefit from stabilizing medical costs. |
| ↑ | British American Tobacco on strength in its new product categories, bigger share buybacks and more favorable regulatory environment. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina, given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Shares Fund PAGE 1 374-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R6** 12/31/2015 — 12/31/2025

![image](ts6192img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R6**  | 11.79 | 9.55 | 7.89 |
| **Russell 3000 Index**  | 17.15 | 13.15 | 14.28 |
| **Russell 1000 Value Index**  | 15.91 | 11.33 | 10.53 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $7018316385 |
| **Total Number of Portfolio Holdings** | 63 |
| **Total Management Fee Paid** | $46452226 |
| **Portfolio Turnover Rate** | 51.72% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup><sup>,</sup><sup>†</sup> **(% of Total Investments)**

![image](ts6192img004.jpg)

\* Does not include derivatives, except purchased options, if any.

† Certain
 categories may represent less than 0.1%.

Franklin Mutual Shares Fund PAGE 2 374-ATSR-0226

------

**HOW HAS THE FUND CHANGED?**

Effective March 31, 2025, Aman Gupta, CFA was added as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Shares Fund PAGE 3 374-ATSR-0226

10000116051260411485141571355316178150371714219125213801000011274136561294016954204952575420808262093244838012100001173413337122351548215915199191841820529234782721320.016.114.09.87.97.86.35.55.43.53.50.00.2 ------

---

| | |
|:---|:---|
| **Franklin Mutual Shares Fund**  | ![image](img2199_202405220716489.jpg) |
| Class Z [MUTHX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Mutual Shares Fund for the period January 1, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

***This report describes changes to the Fund that occurred during the reporting period.***

**WHAT WERE THE FUND COSTS FOR THE LAST YEAR?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class Z | $78 | 0.74% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended December 31, 2025, Class Z shares of Franklin Mutual Shares Fund returned 11.77%. The Fund compares its performance to the Russell 1000 Value Index, which returned 15.91% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Retailer Dollar General as sales growth was strong and the company took market share by focusing on improving the employee and consumer experience. |
| ↑ | CVS Health on solid recent earnings results in its health insurance and pharmacy businesses and optimism its health insurance business should benefit from stabilizing medical costs. |
| ↑ | British American Tobacco on strength in its new product categories, bigger share buybacks and more favorable regulatory environment. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Fiserv, a financial payments company, after slashing financial guidance late in the reporting period on previous management missteps and weakness in its business in Argentina, given the interest rate and inflation picture. |
| ↓ | Cable company Charter Communications on continued competitive pressures from fiber and fixed wireless access. |
| ↓ | Global Payments following an expensive acquisition which comes with integration challenges and upends efforts to simplify the business. |

---

Franklin Mutual Shares Fund PAGE 1 74-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class Z** 12/31/2015 — 12/31/2025

![image](ts6195img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class Z**  | 11.77 | 9.50 | 7.82 |
| **Russell 3000 Index**  | 17.15 | 13.15 | 14.28 |
| **Russell 1000 Value Index**  | 15.91 | 11.33 | 10.53 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $7018316385 |
| **Total Number of Portfolio Holdings** | 63 |
| **Total Management Fee Paid** | $46452226 |
| **Portfolio Turnover Rate** | 51.72% |

---

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup><sup>,</sup><sup>†</sup> **(% of Total Investments)**

![image](ts6195img004.jpg)

\* Does not include derivatives, except purchased options, if any.

† Certain
 categories may represent less than 0.1%.

Franklin Mutual Shares Fund PAGE 2 74-ATSR-0226

------

**HOW HAS THE FUND CHANGED?**

Effective March 31, 2025, Aman Gupta, CFA was added as a portfolio manager of the Fund.

This is a summary of a certain change to the Fund since January 1, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin Mutual Shares Fund PAGE 3 74-ATSR-0226

10000115881257311448140961348416092149481703118990212251000011274136561294016954204952575420808262093244838012100001173413337122351548215915199191841820529234782721320.016.114.09.87.97.86.35.55.43.53.50.00.2 ------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable

ITEM 2. CODE OF ETHICS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Pursuant to Item 19(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.

The Board of Trustees of the Registrant has determined that Ann Torre Bates and David W. Niemiec possess the technical attributes identified in Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Ann Torre Bates and David W. Niemiec as the Audit Committee's financial experts. Ann Torre Bates and David W. Niemiec are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Audit Fees</u>. The aggregate fees billed in the last two fiscal years ending December 31, 2024 and December 31, 2025 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $348,714 in December 31, 2024 and $352,403 in December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Audit-Related Fees</u>. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $2,750 in December 31, 2024 and $0 in December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Fees</u>. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $0 in December 31, 2024 and $0 in December 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Registrant's investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates") during the Reporting Periods that required pre-approval by the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>All Other Fees</u>. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in December 31, 2024 and $0 in December 31, 2025.

There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Audit Committee's pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Registrant's Audit Committee is directly responsible for approving the services to be provided by the Auditors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pre-approval of all audit and audit related services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pre-approval of all non-audit related services to be provided to the Registrant by the Auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pre-approval of all non-audit related services to be provided by the Auditors to the Registrant and the Service Affiliates where the non-audit services relate directly to the operations or financial reporting of the Registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) establishment by the Audit Committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the Auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of Audit Committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $0 in December 31, 2024 and $0 in December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Yes. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable*.*

ITEM 6. SCHEDULE OF INVESTMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Please see schedule of investments contained in the Financial Statements and Financial
 Highlights included under Item 7 of this Form N-CSR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

#### Franklin

#### Mutual

#### Series

#### Funds

#### Financial

#### Statements

#### and

#### Other

#### Important

#### Information

#### Annual
\|

December

31,

2025

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund

#### Table

#### of

#### Contents
franklintempleton.com

Financial

Statements

and

Other

Important

Information—Annual

Financial

Highlights

and

Schedules

of

Investments

#### 2
Financial

Statements

#### 47
Notes

to

Financial

Statements

#### 58
Report

of

Independent

Registered

Public

Accounting

Firm

#### 88
Tax

Information

#### 89
Changes

In

and

Disagreements

with

Accountants

#### 90
Results

of

Meeting(s)

of

Shareholders

Remuneration

Paid

to

Directors,

Officers

and

Others

Board

Approval

of

Management

and

Subadvisory

Agreements

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Beacon

#### Fund
franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### Z

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.83

$15.59

$14.37

$17.96

$16.48

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.28 0.32 0.35 0.28 0.26 Net

realized

and

unrealized

gains

(losses)

...........

3.77 0.90 1.84 (2.45)

2.45 Total

from

investment

operations

....................

4.05 1.22 2.19 (2.17)

2.71 Less

distributions

from:

Net

investment

income

..........................

(0.27)

(0.33)

(0.32)

(0.23)

(0.37)

Net

realized

gains

.............................

(1.01)

(0.65)

(0.65)

(1.19)

(0.86)

Total

distributions

...............................

(1.28)

(0.98)

(0.97)

(1.42)

(1.23)

Net

asset

value,

end

of

year

.......................

$18.60

$15.83

$15.59

$14.37

$17.96

Total

return

....................................

25.57%

7.83%

15.48%

(11.67)%

16.68%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

c

.....................................

0.76%

d

0.77%

0.77%

e

0.77%

e

0.81%

e

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

—%

f

0.01%

Net

investment

income

...........................

1.59%

1.91%

2.32%

1.73%

1.41%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$2,338,042

$2,039,624

$2,106,341

$2,010,947

$2,508,213

Portfolio

turnover

rate

............................

46.86%

15.03%

44.54%

49.68%

40.89%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Beacon

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### A

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.60

$15.38

$14.19

$17.76

$16.30

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.23 0.27 0.31 0.23 0.21 Net

realized

and

unrealized

gains

(losses)

...........

3.71 0.88 1.81 (2.42)

2.43 Total

from

investment

operations

....................

3.94 1.15 2.12 (2.19)

2.64 Less

distributions

from:

Net

investment

income

..........................

(0.22)

(0.28)

(0.28)

(0.19)

(0.32)

Net

realized

gains

.............................

(1.01)

(0.65)

(0.65)

(1.19)

(0.86)

Total

distributions

...............................

(1.23)

(0.93)

(0.93)

(1.38)

(1.18)

Net

asset

value,

end

of

year

.......................

$18.31

$15.60

$15.38

$14.19

$17.76

Total

return

c

...................................

25.28%

7.52%

15.19%

(11.91)%

16.46%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

d

....................................

1.01%

e

1.02%

1.02%

f

1.02%

f

1.06%

f

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

—%

g

0.01%

Net

investment

income

...........................

1.35%

1.66%

2.07%

1.48%

1.16%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$883,954

$788,354

$829,104

$798,281

$987,817

Portfolio

turnover

rate

............................

46.86%

15.03%

44.54%

49.68%

40.89%

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Beacon

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### C

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.79

$15.53

$14.32

$17.88

$16.37

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.11 0.15 0.20 0.12 0.08 Net

realized

and

unrealized

gains

(losses)

...........

3.73 0.90 1.81 (2.43)

2.43 Total

from

investment

operations

....................

3.84 1.05 2.01 (2.31)

2.51 Less

distributions

from:

Net

investment

income

..........................

(0.08)

(0.14)

(0.15)

(0.06)

(0.14)

Net

realized

gains

.............................

(1.01)

(0.65)

(0.65)

(1.19)

(0.86)

Total

distributions

...............................

(1.09)

(0.79)

(0.80)

(1.25)

(1.00)

Net

asset

value,

end

of

year

.......................

$18.54

$15.79

$15.53

$14.32

$17.88

Total

return

c

...................................

24.30%

6.77%

14.28%

(12.55)%

15.55%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

d

....................................

1.76%

e

1.77%

1.77%

f

1.77%

f

1.80%

f

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

—%

g

0.01%

Net

investment

income

...........................

0.62%

0.92%

1.32%

0.75%

0.43%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$14,037

$14,803

$17,359

$18,813

$27,853

Portfolio

turnover

rate

............................

46.86%

15.03%

44.54%

49.68%

40.89%

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Beacon

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.32

$15.12

$13.97

$17.51

$16.09

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.19 0.22 0.27 0.19 0.16 Net

realized

and

unrealized

gains

(losses)

...........

3.64 0.87 1.77 (2.38)

2.40 Total

from

investment

operations

....................

3.83 1.09 2.04 (2.19)

2.56 Less

distributions

from:

Net

investment

income

..........................

(0.19)

(0.24)

(0.24)

(0.16)

(0.28)

Net

realized

gains

.............................

(1.01)

(0.65)

(0.65)

(1.19)

(0.86)

Total

distributions

...............................

(1.20)

(0.89)

(0.89)

(1.35)

(1.14)

Net

asset

value,

end

of

year

.......................

$17.95

$15.32

$15.12

$13.97

$17.51

Total

return

....................................

24.97%

7.24%

14.87%

(12.08)%

16.12%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

c

.....................................

1.26%

d

1.27%

1.27%

e

1.27%

e

1.31%

e

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

—%

f

0.01%

Net

investment

income

...........................

1.09%

1.39%

1.82%

1.22%

0.92%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$1,439

$1,160

$1,348

$1,329

$1,388

Portfolio

turnover

rate

............................

46.86%

15.03%

44.54%

49.68%

40.89%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Beacon

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R6

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.82

$15.58

$14.37

$17.96

$16.47

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.29 0.32 0.31 0.30 0.26 Net

realized

and

unrealized

gains

(losses)

...........

3.75 0.90 1.88 (2.46)

2.47 Total

from

investment

operations

....................

4.04 1.22 2.19 (2.16)

2.73 Less

distributions

from:

Net

investment

income

..........................

(0.27)

(0.33)

(0.33)

(0.24)

(0.38)

Net

realized

gains

.............................

(1.01)

(0.65)

(0.65)

(1.19)

(0.86)

Total

distributions

...............................

(1.28)

(0.98)

(0.98)

(1.43)

(1.24)

Net

asset

value,

end

of

year

.......................

$18.58

$15.82

$15.58

$14.37

$17.96

Total

return

....................................

25.57%

7.88%

15.48%

(11.61)%

16.83%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

c

......

0.72%

0.72%

0.73%

0.71%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.72%

d

0.72%

d

0.72%

e

0.70%

e

0.75%

e

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

—%

f

0.01%

Net

investment

income

...........................

1.64%

1.94%

2.06%

1.83%

1.39%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$272,010

$218,034

$236,837

$101,313

$151,226

Portfolio

turnover

rate

............................

46.86%

15.03%

44.54%

49.68%

40.89%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Schedule

of

Investments,

December

31,

2025

#### Franklin

#### Mutual

#### Beacon

#### Fund
franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks

#### 98.9%

#### Automobiles

#### 2.2%
General

Motors

Co.

..................................

United

States

961,209

$

78,165,516

#### Banks

#### 10.7%
BNP

Paribas

SA

....................................

France

528,279

49,978,914

DBS

Group

Holdings

Ltd.

.............................

Singapore

3,585,126

157,045,206

JPMorgan

Chase

&

Co.

...............................

United

States

523,715

168,751,447

375,775,567

#### Beverages

#### 2.3%
Heineken

NV

......................................

Netherlands

987,997

81,516,591

#### Broadline

#### Retail

#### 3.8%
a

Amazon.com,

Inc.

...................................

United

States

576,808

133,138,823

#### Building

#### Products

#### 4.0%
Johnson

Controls

International

plc

.......................

United

States

1,170,149

140,125,343

#### Capital

#### Markets

#### 3.0%
BlackRock,

Inc.

.....................................

United

States

99,372

106,361,826

#### Electric

#### Utilities

#### 1.8%
PPL

Corp.

.........................................

United

States

1,827,245

63,990,120

#### Entertainment

#### 3.1%
Walt

Disney

Co.

(The)

................................

United

States

946,149

107,643,372

#### Food

#### Products

#### 3.4%
Nestle

SA

.........................................

United

States

1,191,275

118,244,910

#### Health

#### Care

#### Equipment

#### &

#### Supplies

#### 5.9%
a

Cooper

Cos.,

Inc.

(The)

...............................

United

States

1,602,363

131,329,671

Medtronic

plc

......................................

United

States

785,448

75,450,135

206,779,806

#### Household

#### Products

#### 5.4%
Colgate-Palmolive

Co.

...............................

United

States

1,487,979

117,580,100

Reckitt

Benckiser

Group

plc

...........................

United

Kingdom

896,832

72,571,060

190,151,160

#### Insurance

#### 8.4%
Hartford

Insurance

Group,

Inc.

(The)

.....................

United

States

1,100,992

151,716,697

Progressive

Corp.

(The)

..............................

United

States

632,615

144,059,088

295,775,785

#### Interactive

#### Media

#### &

#### Services

#### 4.8%
Alphabet,

Inc.

,

A

....................................

United

States

324,991

101,722,183

Meta

Platforms,

Inc.

,

A

...............................

United

States

99,340

65,573,341

167,295,524

#### Life

#### Sciences

#### Tools

#### &

#### Services

#### 3.5%
Thermo

Fisher

Scientific,

Inc.

..........................

United

States

209,300

121,278,885

#### Machinery

#### 3.9%
Parker-Hannifin

Corp.

................................

United

States

157,149

138,127,685

#### Metals

#### &

#### Mining

#### 3.2%
Reliance,

Inc.

......................................

United

States

384,578

111,093,047

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels

#### 4.7%
Chevron

Corp.

.....................................

United

States

365,127

55,649,006

EOG

Resources,

Inc.

................................

United

States

516,697

54,258,352

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Beacon

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels
(continued)

Shell

plc

..........................................

United

States

1,493,203

$

55,027,891

164,935,249

#### Pharmaceuticals

#### 12.5%
Haleon

plc

........................................

United

States

30,677,100

155,023,078

Merck

&

Co.,

Inc.

...................................

United

States

539,030

56,738,298

Novartis

AG

,

ADR

...................................

United

States

810,088

111,686,833

Roche

Holding

AG

..................................

United

States

281,879

116,407,649

439,855,858

#### Retail

#### REITs

#### 2.0%
Brixmor

Property

Group,

Inc.

...........................

United

States

2,701,474

70,832,648

#### Semiconductors

#### &

#### Semiconductor

#### Equipment

#### 1.7%
NXP

Semiconductors

NV

.............................

Netherlands

269,419

58,480,088

#### Software

#### 1.5%
Gen

Digital,

Inc.

....................................

United

States

1,878,393

51,073,506

#### Specialty

#### Retail

#### 3.4%
a

Ulta

Beauty,

Inc.

....................................

United

States

198,997

120,395,175

#### Trading

#### Companies

#### &

#### Distributors

#### 3.7%
Ferguson

Enterprises,

Inc.

............................

United

States

584,159

130,051,318

#### Total

#### Common

#### Stocks

#### (Cost

#### $

#### 2,353,860,244

####)
..................................

#### 3,471,087,802

#### Companies

#### in

#### Liquidation

#### 0.0%
a,b,c

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

....

United

States

5,229,000

—

#### Total

#### Companies

#### in

#### Liquidation

#### (Cost

#### $

#### –

####)
....................................

#### —

#### Total

#### Long

#### Term

#### Investments

#### (Cost

#### $

#### 2,353,860,244

####)
...........................

#### 3,471,087,802

#### a

#### Short

#### Term

#### Investments

#### 1.0%
a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Money

#### Market

#### Funds

#### 1.0%
d,e

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.681 %

.........................................

United

States

34,227,113

34,227,113

#### Total

#### Money

#### Market

#### Funds

#### (Cost

#### $

#### 34,227,113

####)
................................

#### 34,227,113

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $

#### 34,227,113

####)
..............................

#### 34,227,113

#### a

#### Total

#### Investments

#### (Cost

#### $

#### 2,388,087,357

####)
99.9 #### %
................................

#### $3,505,314,915

#### Other

#### Assets,

#### less

#### Liabilities
0.1 #### %
...........................................

#### 4,165,843

#### Net

#### Assets

#### 100.0%

#### .........................................................

#### $3,509,480,758

#### a
Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Beacon

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

See

Abbreviations

on

.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

c

Contingent

distributions

represent

the

right

to

receive

additional

distributions,

if

any,

during

the

reorganization

of

the

underlying

company.

Shares

represent

total

underlying

principal

of

debt

securities.

d

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### Z

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$28.71

$30.54

$27.18

$31.58

$28.77

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.65 0.66 0.53 0.59 c

0.42 Net

realized

and

unrealized

gains

(losses)

...........

6.11 0.81 5.00 (2.20)

5.15 Total

from

investment

operations

....................

6.76 1.47 5.53 (1.61)

5.57 Less

distributions

from:

Net

investment

income

..........................

(0.62)

(0.66)

(0.49)

(0.56)

(0.81)

Net

realized

gains

.............................

(2.76)

(2.64)

(1.68)

(2.23)

(1.95)

Total

distributions

...............................

(3.38)

(3.30)

(2.17)

(2.79)

(2.76)

Net

asset

value,

end

of

year

.......................

$32.09

$28.71

$30.54

$27.18

$31.58

Total

return

....................................

23.67%

4.84%

20.54%

(4.70)%

19.67%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.95%

0.96%

0.96%

0.95%

1.04%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.95%

e

0.96%

0.96%

f

0.95%

e,f

1.02%

f

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

g

—%

g

0.02%

Net

investment

income

...........................

2.02%

2.05%

1.78%

1.98%

c

1.28%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$3,369,992

$3,037,070

$3,113,311

$2,857,597

$3,355,158

Portfolio

turnover

rate

............................

42.28%

34.55%

35.47%

53.26%

40.67%

#### a
The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

#### b
Based

on

average

daily

shares

outstanding.

#### c
Net

investment

income

per

share

includes

approximately

$0.08

per

share

related

to

income

received

in

the

form

of

special

dividends

and

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.71%.

#### d
Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

#### e
Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

#### f
Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

#### g
Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### A

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$27.77

$29.64

$26.44

$30.81

$28.12

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.55 0.56 0.44 0.50 c

0.33 Net

realized

and

unrealized

gains

(losses)

...........

5.91 0.79 4.86 (2.15)

5.04 Total

from

investment

operations

....................

6.46 1.35 5.30 (1.65)

5.37 Less

distributions

from:

Net

investment

income

..........................

(0.55)

(0.58)

(0.42)

(0.49)

(0.73)

Net

realized

gains

.............................

(2.76)

(2.64)

(1.68)

(2.23)

(1.95)

Total

distributions

...............................

(3.31)

(3.22)

(2.10)

(2.72)

(2.68)

Net

asset

value,

end

of

year

.......................

$30.92

$27.77

$29.64

$26.44

$30.81

Total

return

d

...................................

23.37%

4.57%

20.22%

(4.95)%

19.40%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.20%

1.21%

1.21%

1.20%

1.29%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.20%

f

1.21%

1.21%

g

1.20%

f,g

1.27%

g

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

h

—%

h

0.02%

Net

investment

income

...........................

1.77%

1.81%

1.54%

1.72%

c

1.03%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$5,392,717

$4,949,776

$5,169,284

$4,749,259

$5,618,446

Portfolio

turnover

rate

............................

42.28%

34.55%

35.47%

53.26%

40.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.08

per

share

related

to

income

received

in

the

form

of

special

dividends

and

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.45%.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### C

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$28.07

$29.88

$26.60

$30.92

$28.12

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.32 0.33 0.23 0.28 c

0.09 Net

realized

and

unrealized

gains

(losses)

...........

5.95 0.80 4.86 (2.13)

5.04 Total

from

investment

operations

....................

6.27 1.13 5.09 (1.85)

5.13 Less

distributions

from:

Net

investment

income

..........................

(0.28)

(0.30)

(0.13)

(0.24)

(0.38)

Net

realized

gains

.............................

(2.76)

(2.64)

(1.68)

(2.23)

(1.95)

Total

distributions

...............................

(3.04)

(2.94)

(1.81)

(2.47)

(2.33)

Net

asset

value,

end

of

year

.......................

$31.30

$28.07

$29.88

$26.60

$30.92

Total

return

d

...................................

22.44%

3.80%

19.30%

(5.63)%

18.50%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.95%

1.96%

1.96%

1.95%

2.04%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.95%

f

1.96%

1.96%

g

1.95%

f,g

2.02%

g

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

h

—%

h

0.02%

Net

investment

income

...........................

1.04%

1.07%

0.80%

0.97%

c

0.29%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$117,208

$137,216

$173,812

$221,344

$335,605

Portfolio

turnover

rate

............................

42.28%

34.55%

35.47%

53.26%

40.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.08

per

share

related

to

income

received

in

the

form

of

special

dividends

and

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.70%.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$27.22

$29.11

$26.00

$30.34

$27.70

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.46 0.47 0.36 0.42 c

0.24 Net

realized

and

unrealized

gains

(losses)

...........

5.79 0.78 4.77 (2.11)

4.97 Total

from

investment

operations

....................

6.25 1.25 5.13 (1.69)

5.21 Less

distributions

from:

Net

investment

income

..........................

(0.47)

(0.50)

(0.34)

(0.42)

(0.62)

Net

realized

gains

.............................

(2.76)

(2.64)

(1.68)

(2.23)

(1.95)

Total

distributions

...............................

(3.23)

(3.14)

(2.02)

(2.65)

(2.57)

Net

asset

value,

end

of

year

.......................

$30.24

$27.22

$29.11

$26.00

$30.34

Total

return

....................................

23.08%

4.32%

19.92%

(5.17)%

19.10%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.45%

1.46%

1.46%

1.45%

1.54%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.45%

e

1.46%

1.46%

f

1.45%

e,f

1.52%

f

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

g

—%

g

0.02%

Net

investment

income

...........................

1.53%

1.56%

1.29%

1.47%

c

0.79%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$106,741

$106,561

$114,920

$109,826

$136,983

Portfolio

turnover

rate

............................

42.28%

34.55%

35.47%

53.26%

40.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.08

per

share

related

to

income

received

in

the

form

of

special

dividends

and

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.20%.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R6

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$28.69

$30.52

$27.16

$31.57

$28.75

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.67 0.68 0.56 0.62 c

0.44 Net

realized

and

unrealized

gains

(losses)

...........

6.11 0.82 5.00 (2.21)

5.18 Total

from

investment

operations

....................

6.78 1.50 5.56 (1.59)

5.62 Less

distributions

from:

Net

investment

income

..........................

(0.65)

(0.69)

(0.52)

(0.59)

(0.85)

Net

realized

gains

.............................

(2.76)

(2.64)

(1.68)

(2.23)

(1.95)

Total

distributions

...............................

(3.41)

(3.33)

(2.20)

(2.82)

(2.80)

Net

asset

value,

end

of

year

.......................

$32.06

$28.69

$30.52

$27.16

$31.57

Total

return

....................................

23.73%

4.92%

20.65%

(4.65)%

19.84%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.89%

0.88%

0.89%

0.86%

0.95%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.89%

e

0.88%

0.89%

f

0.86%

e,f

0.92%

f

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

g

—%

g

0.02%

Net

investment

income

...........................

2.09%

2.13%

1.90%

2.07%

c

1.35%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$481,987

$468,510

$498,705

$525,379

$653,091

Portfolio

turnover

rate

............................

42.28%

34.55%

35.47%

53.26%

40.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.08

per

share

related

to

income

received

in

the

form

of

special

dividends

and

an

adjustment

for

EU

reclaims

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.79%.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Schedule

of

Investments,

December

31,

2025

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks

#### 95.4%

#### Aerospace

#### &

#### Defense

#### 2.1%
Airbus

SE

.........................................

France

848,646

$

197,075,958

#### Automobile

#### Components

#### 1.1%
Denso

Corp.

.......................................

Japan

7,220,573

99,731,403

#### Automobiles

#### 2.8%
Stellantis

NV

.......................................

United

States

9,487,840

103,898,555

Toyota

Motor

Corp.

..................................

Japan

7,523,666

161,586,507

265,485,062

#### Banks

#### 9.3%
Bank

of

America

Corp.

...............................

United

States

3,474,792

191,113,560

BNP

Paribas

SA

....................................

France

2,401,312

227,181,025

DBS

Group

Holdings

Ltd.

.............................

Singapore

3,459,649

151,548,730

JPMorgan

Chase

&

Co.

...............................

United

States

388,287

125,113,837

Wells

Fargo

&

Co.

...................................

United

States

1,945,627

181,332,436

876,289,588

#### Beverages

#### 1.7%
Heineken

NV

......................................

Netherlands

1,983,768

163,674,592

#### Broadline

#### Retail

#### 1.5%
Pan

Pacific

International

Holdings

Corp.

..................

Japan

23,755,922

141,511,751

#### Building

#### Products

#### 1.6%
Cie

de

Saint-Gobain

SA

..............................

France

1,464,913

148,969,795

#### Capital

#### Markets

#### 3.3%
BlackRock,

Inc.

.....................................

United

States

139,612

149,432,308

Deutsche

Bank

AG

..................................

Germany

4,319,200

166,458,240

315,890,548

#### Chemicals

#### 3.3%
BASF

SE

.........................................

Germany

3,241,767

170,577,248

PPG

Industries,

Inc.

.................................

United

States

1,400,695

143,515,210

314,092,458

#### Consumer

#### Finance

#### 1.7%
Capital

One

Financial

Corp.

...........................

United

States

664,026

160,933,341

#### Containers

#### &

#### Packaging

#### 1.7%
International

Paper

Co.

...............................

United

States

4,181,111

164,693,962

#### Diversified

#### Telecommunication

#### Services

#### 2.0%
Deutsche

Telekom

AG

................................

Germany

5,933,402

193,138,501

#### Electrical

#### Equipment

#### 1.3%
Mitsubishi

Electric

Corp.

..............................

Japan

4,251,217

123,952,123

#### Energy

#### Equipment

#### &

#### Services

#### 1.4%
SLB

Ltd.

..........................................

United

States

3,418,089

131,186,256

#### Entertainment

#### 1.8%
Walt

Disney

Co.

(The)

................................

United

States

1,487,531

169,236,402

#### Financial

#### Services

#### 2.0%
a

Fiserv,

Inc.

........................................

United

States

1,357,493

91,182,805

Global

Payments,

Inc.

................................

United

States

1,228,463

95,083,036

186,265,841

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Food

#### Products

#### 3.0%
Danone

SA

........................................

France

1,467,189

$

132,339,117

Mondelez

International,

Inc.

,

A

..........................

United

States

2,829,383

152,305,687

284,644,804

#### Ground

#### Transportation

#### 1.5%
Union

Pacific

Corp.

..................................

United

States

629,400

145,592,808

#### Health

#### Care

#### Equipment

#### &

#### Supplies

#### 3.5%
Medtronic

plc

......................................

United

States

1,856,578

178,342,883

Zimmer

Biomet

Holdings,

Inc.

..........................

United

States

1,694,167

152,339,496

330,682,379

#### Health

#### Care

#### Providers

#### &

#### Services

#### 4.7%
CVS

Health

Corp.

...................................

United

States

1,834,131

145,556,636

Elevance

Health,

Inc.

................................

United

States

463,064

162,327,085

Fresenius

SE

&

Co.

KGaA

.............................

Germany

2,434,938

139,501,981

447,385,702

#### Household

#### Products

#### 1.8%
Reckitt

Benckiser

Group

plc

...........................

United

Kingdom

2,146,500

173,693,378

#### Industrial

#### Conglomerates

#### 1.1%
Siemens

AG

.......................................

Germany

372,371

104,292,401

#### Insurance

#### 1.9%
Prudential

plc

......................................

Hong

Kong

11,658,892

179,349,642

#### Interactive

#### Media

#### &

#### Services

#### 6.0%
Alphabet,

Inc.

,

A

....................................

United

States

821,600

257,160,800

Meta

Platforms,

Inc.

,

A

...............................

United

States

222,238

146,697,081

b

Tencent

Holdings

Ltd.

................................

China

2,152,238

165,170,362

569,028,243

#### IT

#### Services

#### 2.0%
Capgemini

SE

......................................

France

1,125,622

186,907,546

#### Media

#### 1.3%
a

Charter

Communications,

Inc.

,

A

........................

United

States

577,623

120,578,801

#### Metals

#### &

#### Mining

#### 1.4%
Rio

Tinto

plc

.......................................

Australia

1,656,570

133,438,443

#### Multi-Utilities

#### 1.2%
National

Grid

plc

....................................

United

Kingdom

7,545,498

115,736,487

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels

#### 4.8%
BP

plc

............................................

United

States

27,766,456

161,932,969

EOG

Resources,

Inc.

................................

United

States

1,288,197

135,273,567

Shell

plc

..........................................

United

States

4,156,483

153,175,753

450,382,289

#### Pharmaceuticals

#### 8.7%
Haleon

plc

........................................

United

States

38,412,849

194,114,767

Merck

&

Co.,

Inc.

...................................

United

States

1,856,906

195,457,925

Novartis

AG

,

ADR

...................................

United

States

1,593,094

219,639,870

Roche

Holding

AG

..................................

United

States

512,706

211,732,339

820,944,901

#### Semiconductors

#### &

#### Semiconductor

#### Equipment

#### 1.6%
a

Renesas

Electronics

Corp.

............................

Japan

10,873,519

148,932,986

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Software

#### 1.7%
a

Adobe,

Inc.

........................................

United

States

468,948

$

164,127,111

#### Specialized

#### REITs

#### 1.5%
American

Tower

Corp.

................................

United

States

814,991

143,087,970

#### Technology

#### Hardware,

#### Storage

#### &

#### Peripherals

#### 1.8%
Samsung

Electronics

Co.

Ltd.

..........................

South

Korea

1,977,879

165,775,727

#### Textiles,

#### Apparel

#### &

#### Luxury

#### Goods

#### 2.0%
Cie

Financiere

Richemont

SA

..........................

Switzerland

865,842

186,719,732

#### Tobacco

#### 2.0%
British

American

Tobacco

plc

...........................

United

Kingdom

3,361,093

190,542,564

#### Trading

#### Companies

#### &

#### Distributors

#### 3.3%
AerCap

Holdings

NV

.................................

Ireland

1,357,891

195,210,410

Ferguson

Enterprises,

Inc.

............................

United

States

545,947

121,544,181

316,754,591

#### Total

#### Common

#### Stocks

#### (Cost

#### $

#### 6,669,216,215

####)
..................................

#### 9,030,726,086

#### Principal

#### Amount

#### \*

#### Corporate

#### Bonds

#### 0.4%

#### Commercial

#### Services

#### &

#### Supplies

#### 0.2%
c

Neptune

Bidco

US,

Inc.

,

Senior

Secured

Note

,

144A,

10.375 %

,

5/15/31

.........................................

United

States

20,484,000

21,014,761

#### Specialty

#### Retail

#### 0.2%
c

Michaels

Cos.,

Inc.

(The)

,

Senior

Note

,

144A,

7.875 %

,

5/01/29

.

United

States

25,782,000

23,834,322

#### Total

#### Corporate

#### Bonds

#### (Cost

#### $

#### 37,855,903

####)
....................................

#### 44,849,083
d

#### Senior

#### Floating

#### Rate

#### Interests

#### 1.8%
e

#### Commercial

#### Services

#### &

#### Supplies

#### 0.9%
Neptune

Bidco

US,

Inc.,

First

Lien,

CME

Term

Loan,

A

,

8.762 %

,

(3-month

SOFR

+

4.75 %),

10/11/28

....................

United

States

47,590,725

47,074,366

Neptune

Bidco

US,

Inc.,

First

Lien,

Dollar

CME

Term

Loan,

B

,

9.012 %

,

(3-month

SOFR

+

%),

4/11/29

.................

United

States

36,696,368

36,370,687

83,445,053

a

a

a

a

a

a

#### Professional

#### Services

#### 0.4%
e

CoreLogic,

Inc.,

First

Lien,

Initial

CME

Term

Loan

,

7.331 %

,

(1-month

SOFR

+

3.5 %),

6/02/28

......................

United

States

39,728,854

39,819,038

#### Specialty

#### Retail

#### 0.5%
e

Michaels

Cos.,

Inc.

(The),

First

Lien,

CME

Term

Loan,

B

,

8.184 %

,

(3-month

SOFR

+

4.25 %),

4/17/28

.....................

United

States

48,181,012

46,703,783

#### Total

#### Senior

#### Floating

#### Rate

#### Interests

#### (Cost

#### $

#### 158,723,947

####)
.......................

#### 169,967,874

#### Shares
a

#### Companies

#### in

#### Liquidation

#### 0.0%
a,f,g

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

....

United

States

30,996,000

—

#### Total

#### Companies

#### in

#### Liquidation

#### (Cost

#### $

#### –

####)
....................................

#### —

#### Total

#### Long

#### Term

#### Investments

#### (Cost

#### $

#### 6,865,796,065

####)
...........................

#### 9,245,543,043

#### a
Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

See

Abbreviations

on

.

#### Short

#### Term

#### Investments

#### 1.7%
a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Money

#### Market

#### Funds

#### 1.7%
h,i

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.681 %

.........................................

United

States

164,225,510

$

164,225,510

#### Total

#### Money

#### Market

#### Funds

#### (Cost

#### $

#### 164,225,510

####)
...............................

#### 164,225,510

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $

#### 164,225,510

####)
.............................

#### 164,225,510

#### a

#### Total

#### Investments

#### (Cost

#### $

#### 7,030,021,575

####)
99.3 #### %
................................

#### $9,409,768,553

#### Other

#### Assets,

#### less

#### Liabilities
0.7 #### %
...........................................

#### 58,876,338

#### Net

#### Assets

#### 100.0%

#### .........................................................

#### $9,468,644,891

#### a
\*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

Variable

interest

entity

(VIE).

See

Note

regarding

investments

made

through

a

VIE

structure.

At

December

31,

2025,

the

value

of

this

security

was

$165,170,362,

repre-

senting

1.7%

of

net

assets.

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933. 144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933. Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2025,

the

aggregate

value

of

these

securities

was

$44,849,083,

representing

0.5%

of

net

assets.

d

See

Note

1(f)

regarding

senior

floating

rate

interests.

e

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

f

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

g

Contingent

distributions

represent

the

right

to

receive

additional

distributions,

if

any,

during

the

reorganization

of

the

underlying

company.

Shares

represent

total

underlying

principal

of

debt

securities.

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### Z

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.13

$23.97

$21.07

$21.91

$19.49

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.65 0.53 0.50 0.60 0.58 Net

realized

and

unrealized

gains

(losses)

...........

8.97 0.37 2.94 (0.74)

2.61 Total

from

investment

operations

....................

9.62 0.90 3.44 (0.14)

3.19 Less

distributions

from:

Net

investment

income

..........................

(1.01)

(0.74)

(0.54)

(0.70)

(0.77)

Net

asset

value,

end

of

year

.......................

$32.74

$24.13

$23.97

$21.07

$21.91

Total

return

....................................

39.94%

3.67%

16.49%

(0.51)%

16.49%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

c

......

0.99%

0.99%

0.97%

1.00%

1.07%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.96%

0.95%

0.97%

d,e

1.00%

d,e

1.07%

d,e

Expenses

-

incurred

in

connection

with

securities

sold

short

0.01%

—%

—%

—%

—%

Net

investment

income

...........................

2.18%

2.09%

2.23%

2.87%

2.71%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$786,654

$465,449

$480,409

$414,151

$457,644

Portfolio

turnover

rate

............................

51.25%

42.06%

58.49%

32.10%

32.03%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### A

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$23.32

$23.19

$20.41

$21.24

$18.91

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.57 0.45 0.44 0.53 0.51 Net

realized

and

unrealized

gains

(losses)

...........

8.66 0.36 2.82 (0.72)

2.54 Total

from

investment

operations

....................

9.23 0.81 3.26 (0.19)

3.05 Less

distributions

from:

Net

investment

income

..........................

(0.95)

(0.68)

(0.48)

(0.64)

(0.72)

Net

asset

value,

end

of

year

.......................

$31.60

$23.32

$23.19

$20.41

$21.24

Total

return

c

...................................

39.63%

3.40%

16.16%

(0.73)%

16.23%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.25%

1.24%

1.22%

1.25%

1.32%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.21%

1.20%

1.22%

e,f

1.25%

e,f

1.32%

e,f

Expenses

-

incurred

in

connection

with

securities

sold

short

0.01%

—%

—%

—%

—%

Net

investment

income

...........................

2.01%

1.84%

1.99%

2.60%

2.45%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$401,409

$277,513

$287,258

$256,163

$281,685

Portfolio

turnover

rate

............................

51.25%

42.06%

58.49%

32.10%

32.03%

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### C

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$23.91

$23.72

$20.83

$21.60

$19.17

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.37 0.28 0.30 0.39 0.38 Net

realized

and

unrealized

gains

(losses)

...........

8.84 0.36 2.85 (0.73)

2.54 Total

from

investment

operations

....................

9.21 0.64 3.15 (0.34)

2.92 Less

distributions

from:

Net

investment

income

..........................

(0.73)

(0.45)

(0.26)

(0.43)

(0.49)

Net

asset

value,

end

of

year

.......................

$32.39

$23.91

$23.72

$20.83

$21.60

Total

return

c

...................................

38.60%

2.62%

15.24%

(1.42)%

15.32%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

d

.....

2.00%

1.99%

1.97%

2.00%

2.07%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.96%

1.95%

1.97%

e,f

2.00%

e,f

2.07%

e,f

Expenses

-

incurred

in

connection

with

securities

sold

short

0.01%

—%

—%

—%

—%

Net

investment

income

...........................

1.26%

1.12%

1.35%

1.91%

1.83%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$8,350

$6,284

$8,769

$15,190

$24,236

Portfolio

turnover

rate

............................

51.25%

42.06%

58.49%

32.10%

32.03%

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$22.68

$22.61

$19.90

$20.75

$18.49

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.46 0.31 0.34 0.44 0.45 Net

realized

and

unrealized

gains

(losses)

...........

8.44 0.42 2.79 (0.68)

2.48 Total

from

investment

operations

....................

8.90 0.73 3.13 (0.24)

2.93 Less

distributions

from:

Net

investment

income

..........................

(0.94)

(0.66)

(0.42)

(0.61)

(0.67)

Net

asset

value,

end

of

year

.......................

$30.64

$22.68

$22.61

$19.90

$20.75

Total

return

....................................

39.30%

3.16%

15.88%

(1.03)%

15.96%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

c

......

1.50%

1.49%

1.47%

1.49%

1.58%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.46%

1.45%

1.47%

d,e

1.49%

d,e

1.58%

d,e

Expenses

-

incurred

in

connection

with

securities

sold

short

0.01%

—%

—%

—%

—%

Net

investment

income

...........................

1.65%

1.32%

1.58%

2.23%

2.21%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$6,983

$1,707

$783

$623

$639

Portfolio

turnover

rate

............................

51.25%

42.06%

58.49%

32.10%

32.03%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R6

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.11

$23.95

$21.05

$21.88

$19.47

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.68 0.49 0.63 0.62 0.60 Net

realized

and

unrealized

gains

(losses)

...........

8.97 0.42 2.81 (0.73)

2.60 Total

from

investment

operations

....................

9.65 0.91 3.44 (0.11)

3.20 Less

distributions

from:

Net

investment

income

..........................

(1.03)

(0.75)

(0.54)

(0.72)

(0.79)

Net

asset

value,

end

of

year

.......................

$32.73

$24.11

$23.95

$21.05

$21.88

Total

return

....................................

40.11%

3.74%

16.53%

(0.38)%

16.56%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

c

......

0.92%

0.93%

0.93%

0.92%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.87%

0.90%

0.90%

d

0.91%

d

0.99%

d

Expenses

-

incurred

in

connection

with

securities

sold

short

0.01%

—%

—%

—%

—%

Net

investment

income

...........................

2.31%

1.96%

2.78%

2.96%

2.78%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$44,032

$22,723

$9,950

$33,306

$35,798

Portfolio

turnover

rate

............................

51.25%

42.06%

58.49%

32.10%

32.03%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Schedule

of

Investments,

December

31,

2025

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks

#### 97.7%

#### Aerospace

#### &

#### Defense

#### 3.1%
Airbus

SE

.........................................

France

102,049

$

23,698,226

Babcock

International

Group

plc

........................

United

Kingdom

903,082

15,049,689

38,747,915

#### Automobile

#### Components

#### 1.4%
Denso

Corp.

.......................................

Japan

1,301,127

17,971,319

#### Automobiles

#### 4.1%
Stellantis

NV

.......................................

United

States

2,408,035

26,369,685

Toyota

Motor

Corp.

..................................

Japan

1,171,201

25,153,998

51,523,683

#### Banks

#### 18.2%
BNP

Paribas

SA

....................................

France

353,513

33,444,819

CaixaBank

SA

......................................

Spain

2,033,660

24,863,783

DBS

Group

Holdings

Ltd.

.............................

Singapore

554,798

24,302,735

HSBC

Holdings

plc

..................................

United

Kingdom

1,483,364

23,342,129

ING

Groep

NV

.....................................

Netherlands

677,697

19,048,866

Mitsubishi

UFJ

Financial

Group,

Inc.

.....................

Japan

1,674,753

26,580,129

Mizuho

Financial

Group,

Inc.

...........................

Japan

504,984

18,429,170

NatWest

Group

plc

..................................

United

Kingdom

2,429,180

21,309,452

UniCredit

SpA

......................................

Italy

435,565

36,076,412

227,397,495

#### Beverages

#### 3.4%
Asahi

Group

Holdings

Ltd.

.............................

Japan

1,712,735

17,952,554

Coca-Cola

Bottlers

Japan

Holdings,

Inc.

..................

Japan

1,224,832

24,747,925

42,700,479

#### Broadline

#### Retail

#### 1.8%
Pan

Pacific

International

Holdings

Corp.

..................

Japan

3,788,831

22,569,703

#### Building

#### Products

#### 2.2%
Cie

de

Saint-Gobain

SA

..............................

France

270,588

27,516,609

#### Capital

#### Markets

#### 5.2%
Deutsche

Bank

AG

..................................

Germany

658,484

25,377,405

SBI

Holdings,

Inc.

...................................

Japan

836,574

18,028,178

St.

James's

Place

plc

................................

United

Kingdom

1,115,907

20,727,304

64,132,887

#### Chemicals

#### 1.9%
BASF

SE

.........................................

Germany

457,302

24,062,592

#### Consumer

#### Staples

#### Distribution

#### &

#### Retail

#### 1.9%
a

Zabka

Group

SA

....................................

Poland

3,695,794

23,512,222

#### Diversified

#### Telecommunication

#### Services

#### 5.1%
Deutsche

Telekom

AG

................................

Germany

819,713

26,682,524

Hellenic

Telecommunications

Organization

SA

..............

Greece

953,351

18,889,575

Koninklijke

KPN

NV

.................................

Netherlands

3,959,296

18,500,668

64,072,767

#### Electrical

#### Equipment

#### 0.9%
Mitsubishi

Electric

Corp.

..............................

Japan

389,464

11,355,546

#### Energy

#### Equipment

#### &

#### Services

#### 1.8%
SLB

Ltd.

..........................................

United

States

577,791

22,175,619

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Food

#### Products

#### 2.6%
Mondelez

International,

Inc.

,

A

..........................

United

States

352,426

$

18,971,091

Nestle

SA

.........................................

United

States

133,720

13,272,930

32,244,021

#### Health

#### Care

#### Equipment

#### &

#### Supplies

#### 1.5%
Olympus

Corp.

.....................................

Japan

1,478,393

18,744,922

#### Household

#### Durables

#### 1.0%
Sony

Group

Corp.

...................................

Japan

479,438

12,298,059

#### Insurance

#### 6.8%
ASR

Nederland

NV

..................................

Netherlands

350,645

24,948,671

Aviva

plc

..........................................

United

Kingdom

3,113,166

28,625,323

Prudential

plc

......................................

Hong

Kong

2,001,079

30,782,754

84,356,748

#### Interactive

#### Media

#### &

#### Services

#### 1.8%
b

Tencent

Holdings

Ltd.

................................

China

294,307

22,586,161

#### IT

#### Services

#### 1.8%
Capgemini

SE

......................................

France

132,733

22,040,080

#### Machinery

#### 4.5%
CNH

Industrial

NV

...................................

United

States

1,352,652

12,471,451

Metso

OYJ

........................................

Finland

1,288,366

22,416,494

RENK

Group

AG

....................................

Germany

348,743

21,734,135

56,622,080

#### Metals

#### &

#### Mining

#### 3.4%
ArcelorMittal

SA

....................................

Luxembourg

558,445

25,643,525

Norsk

Hydro

ASA

...................................

Norway

2,168,836

16,741,624

42,385,149

#### Multi-Utilities

#### 1.2%
National

Grid

plc

....................................

United

Kingdom

957,009

14,679,065

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels

#### 4.3%
BP

plc

............................................

United

States

4,943,623

28,831,031

Shell

plc

..........................................

United

States

686,167

25,286,798

54,117,829

#### Paper

#### &

#### Forest

#### Products

#### 1.8%
Mondi

plc

.........................................

Austria

1,812,594

22,114,019

#### Personal

#### Care

#### Products

#### 1.5%
Unilever

plc

........................................

United

Kingdom

278,510

18,197,060

#### Pharmaceuticals

#### 8.4%
Haleon

plc

........................................

United

States

5,959,260

30,114,412

Novartis

AG

.......................................

United

States

220,460

30,378,505

Roche

Holding

AG

..................................

United

States

106,933

44,160,151

104,653,068

#### Semiconductors

#### &

#### Semiconductor

#### Equipment

#### 0.9%
NXP

Semiconductors

NV

.............................

Netherlands

53,104

11,526,754

#### Textiles,

#### Apparel

#### &

#### Luxury

#### Goods

#### 1.0%
Cie

Financiere

Richemont

SA

..........................

Switzerland

58,041

12,516,602

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

See

Abbreviations

on

.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Tobacco

#### 2.2%
British

American

Tobacco

plc

...........................

United

Kingdom

483,701

$

27,421,327

#### Trading

#### Companies

#### &

#### Distributors

#### 2.0%
AerCap

Holdings

NV

.................................

Ireland

172,147

24,747,853

#### Total

#### Common

#### Stocks

#### (Cost

#### $

#### 951,721,907

####)
...................................

#### 1,218,989,633

#### Short

#### Term

#### Investments

#### 1.8%
a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Money

#### Market

#### Funds

#### 1.8%
c,d

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.681 %

.........................................

United

States

22,537,482

22,537,482

#### Total

#### Money

#### Market

#### Funds

#### (Cost

#### $

#### 22,537,482

####)
................................

#### 22,537,482

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $

#### 22,537,482

####)
..............................

#### 22,537,482

#### a

#### Total

#### Investments

#### (Cost

#### $

#### 974,259,389

####)
99.5 #### %
.................................

#### $1,241,527,115

#### Other

#### Assets,

#### less

#### Liabilities
0.5 #### %
...........................................

#### 5,900,605

#### Net

#### Assets

#### 100.0%

#### .........................................................

#### $1,247,427,720

#### a
a

Non-income

producing.

b

Variable

interest

entity

(VIE).

See

Note

regarding

investments

made

through

a

VIE

structure.

At

December

31,

2025,

the

value

of

this

security

was

$22,586,161,

represent-

ing

1.8%

of

net

assets.

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

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Quest

#### Fund
franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### Z

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.17

$13.68

$12.96

$14.46

$13.31

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.51 0.58 0.57 0.50 0.23 Net

realized

and

unrealized

gains

(losses)

...........

1.99 0.63 0.78 (1.51)

1.29 Total

from

investment

operations

....................

2.50 1.21 1.35 (1.01)

1.52 Less

distributions

from:

Net

investment

income

..........................

(0.67)

(0.72)

(0.63)

(0.49)

(0.37)

Net

asset

value,

end

of

year

.......................

$16.00

$14.17

$13.68

$12.96

$14.46

Total

return

....................................

17.64%

8.80%

10.51%

(6.86)%

11.51%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

c

.....................................

0.77%

d

0.77%

0.80%

d,e

0.78%

d,e

0.87%

d,e

Expenses

-

incurred

in

connection

with

securities

sold

short

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

...........................

3.35%

3.97%

4.31%

3.60%

1.59%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$2,075,099

$1,960,398

$2,026,136

$2,047,788

$2,397,948

Portfolio

turnover

rate

............................

50.37%

48.47%

96.06%

101.19%

66.95%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### A

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.90

$13.44

$12.74

$14.22

$13.09

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.47 0.53 0.53 0.46 0.19 Net

realized

and

unrealized

gains

(losses)

...........

1.94 0.61 0.77 (1.48)

1.28 Total

from

investment

operations

....................

2.41 1.14 1.30 (1.02)

1.47 Less

distributions

from:

Net

investment

income

..........................

(0.63)

(0.68)

(0.60)

(0.46)

(0.34)

Net

asset

value,

end

of

year

.......................

$15.68

$13.90

$13.44

$12.74

$14.22

Total

return

c

...................................

17.34%

8.61%

10.26%

(7.16)%

11.26%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

d

....................................

1.02%

e

1.02%

1.05%

e,f

1.03%

e,f

1.12%

e,f

Expenses

-

incurred

in

connection

with

securities

sold

short

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

...........................

3.11%

3.73%

4.06%

3.35%

1.34%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$570,722

$549,338

$584,271

$617,190

$723,791

Portfolio

turnover

rate

............................

50.37%

48.47%

96.06%

101.19%

66.95%

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### C

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.89

$13.41

$12.71

$14.17

$13.01

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.35 0.42 0.43 0.35 0.08 Net

realized

and

unrealized

gains

(losses)

...........

1.94 0.62 0.75 (1.47)

1.27 Total

from

investment

operations

....................

2.29 1.04 1.18 (1.12)

1.35 Less

distributions

from:

Net

investment

income

..........................

(0.51)

(0.56)

(0.48)

(0.34)

(0.19)

Net

asset

value,

end

of

year

.......................

$15.67

$13.89

$13.41

$12.71

$14.17

Total

return

c

...................................

16.47%

7.77%

9.47%

(7.88)%

10.42%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

d

....................................

1.77%

e

1.76%

1.80%

e,f

1.78%

e,f

1.87%

e,f

Expenses

-

incurred

in

connection

with

securities

sold

short

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

...........................

2.37%

2.99%

3.30%

2.57%

0.55%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$20,236

$22,775

$27,863

$33,039

$44,228

Portfolio

turnover

rate

............................

50.37%

48.47%

96.06%

101.19%

66.95%

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.64

$13.20

$12.52

$13.98

$12.87

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.44 0.49 0.49 0.45 0.15 Net

realized

and

unrealized

gains

(losses)

...........

1.88 0.60 0.75 (1.49)

1.27 Total

from

investment

operations

....................

2.32 1.09 1.24 (1.04)

1.42 Less

distributions

from:

Net

investment

income

..........................

(0.59)

(0.65)

(0.56)

(0.42)

(0.31)

Net

asset

value,

end

of

year

.......................

$15.37

$13.64

$13.20

$12.52

$13.98

Total

return

....................................

17.05%

8.27%

10.01%

(7.44)%

11.05%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

c

.....................................

1.28%

d

1.27%

1.30%

d,e

1.27%

d,e

1.37%

d,e

Expenses

-

incurred

in

connection

with

securities

sold

short

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

...........................

3.00%

3.48%

3.81%

3.39%

1.10%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$3,586

$2,700

$2,742

$3,725

$2,643

Portfolio

turnover

rate

............................

50.37%

48.47%

96.06%

101.19%

66.95%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R6

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.15

$13.66

$12.95

$14.45

$13.29

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.52 0.58 0.57 0.51 0.23 Net

realized

and

unrealized

gains

(losses)

...........

1.98 0.64 0.78 (1.51)

1.31 Total

from

investment

operations

....................

2.50 1.22 1.35 (1.00)

1.54 Less

distributions

from:

Net

investment

income

..........................

(0.68)

(0.73)

(0.64)

(0.50)

(0.38)

Net

asset

value,

end

of

year

.......................

$15.97

$14.15

$13.66

$12.95

$14.45

Total

return

....................................

17.71%

8.86%

10.57%

(6.88)%

11.67%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

before

waiver

and

payments

by

affiliates

c

......

0.77%

0.75%

0.79%

0.76%

0.87%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.73%

0.72%

0.75%

d

0.72%

d

0.82%

d

Expenses

-

incurred

in

connection

with

securities

sold

short

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

...........................

3.39%

4.02%

4.35%

3.65%

1.63%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$30,507

$29,269

$30,994

$32,109

$39,292

Portfolio

turnover

rate

............................

50.37%

48.47%

96.06%

101.19%

66.95%

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Mutual

Series

Funds

Schedule

of

Investments,

December

31,

2025

#### Franklin

#### Mutual

#### Quest

#### Fund
franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks

#### 81.5%

#### Aerospace

#### &

#### Defense

#### 1.2%
Airbus

SE

.........................................

France

142,905

$

33,185,969

#### Automobile

#### Components

#### 2.7%
a

Aptiv

plc

..........................................

United

States

468,791

35,670,307

Denso

Corp.

.......................................

Japan

2,590,235

35,776,630

71,446,937

#### Automobiles

#### 0.5%
Stellantis

NV

.......................................

United

States

1,310,398

14,349,784

#### Banks

#### 6.6%
BNP

Paribas

SA

....................................

France

434,613

41,117,450

Mitsubishi

UFJ

Financial

Group,

Inc.

.....................

Japan

2,170,776

34,452,547

PNC

Financial

Services

Group,

Inc.

(The)

.................

United

States

158,687

33,122,738

UniCredit

SpA

......................................

Italy

446,381

36,972,266

Wells

Fargo

&

Co.

...................................

United

States

337,242

31,430,954

177,095,955

#### Beverages

#### 1.3%
Heineken

NV

......................................

Netherlands

426,263

35,169,648

#### Building

#### Products

#### 1.3%
Johnson

Controls

International

plc

.......................

United

States

283,012

33,890,687

#### Capital

#### Markets

#### 0.5%
St.

James's

Place

plc

................................

United

Kingdom

732,283

13,601,718

#### Chemicals

#### 0.9%
PPG

Industries,

Inc.

.................................

United

States

242,308

24,826,878

#### Communications

#### Equipment

#### 2.4%
Cisco

Systems,

Inc.

.................................

United

States

529,405

40,780,067

a,b,c,d

Inclusive

Language

Services

LLC,

Membership

Interests

,

B

....

United

States

106,532

24,777,471

65,557,538

#### Consumer

#### Staples

#### Distribution

#### &

#### Retail

#### 1.4%
Dollar

General

Corp.

.................................

United

States

279,126

37,059,559

#### Containers

#### &

#### Packaging

#### 0.8%
International

Paper

Co.

...............................

United

States

577,142

22,733,623

#### Diversified

#### Telecommunication

#### Services

#### 2.6%
Deutsche

Telekom

AG

................................

Germany

1,058,061

34,441,003

a

Frontier

Communications

Parent,

Inc.

....................

United

States

632,311

24,072,080

a,b,c

Uniti

Group,

Inc.

....................................

United

States

1,714,983

11,722,927

70,236,010

#### Electric

#### Utilities

#### 3.7%
Entergy

Corp.

......................................

United

States

372,420

34,422,781

Evergy,

Inc.

........................................

United

States

382,452

27,723,945

PPL

Corp.

.........................................

United

States

1,082,445

37,907,224

100,053,950

#### Energy

#### Equipment

#### &

#### Services

#### 2.7%
Baker

Hughes

Co.

,

A

.................................

United

States

681,565

31,038,470

SLB

Ltd.

..........................................

United

States

1,121,386

43,038,795

74,077,265

#### Entertainment

#### 1.6%
Electronic

Arts,

Inc.

..................................

United

States

5,841

1,193,491

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Entertainment
(continued)

Walt

Disney

Co.

(The)

................................

United

States

295,261

$

33,591,844

a

Warner

Bros

Discovery,

Inc.

...........................

United

States

290,000

8,357,800

43,143,135

#### Financial

#### Services

#### 2.4%
Apollo

Global

Management,

Inc.

........................

United

States

95,270

13,791,285

Global

Payments,

Inc.

................................

United

States

329,028

25,466,767

Voya

Financial,

Inc.

..................................

United

States

349,041

26,000,064

65,258,116

#### Food

#### Products

#### 2.6%
Danone

SA

........................................

France

386,644

34,874,938

Nestle

SA

.........................................

United

States

349,808

34,721,635

69,596,573

#### Ground

#### Transportation

#### 0.7%
Union

Pacific

Corp.

..................................

United

States

82,885

19,172,958

#### Health

#### Care

#### Equipment

#### &

#### Supplies

#### 2.8%
a

Cooper

Cos.,

Inc.

(The)

...............................

United

States

475,785

38,995,339

Zimmer

Biomet

Holdings,

Inc.

..........................

United

States

413,275

37,161,688

76,157,027

#### Health

#### Care

#### Providers

#### &

#### Services

#### 2.5%
Elevance

Health,

Inc.

................................

United

States

87,042

30,512,573

Fresenius

SE

&

Co.

KGaA

.............................

Germany

655,657

37,563,770

68,076,343

#### Household

#### Products

#### 2.6%
Colgate-Palmolive

Co.

...............................

United

States

452,523

35,758,367

Reckitt

Benckiser

Group

plc

...........................

United

Kingdom

431,428

34,910,872

70,669,239

#### Industrial

#### Conglomerates

#### 1.1%
Siemens

AG

.......................................

Germany

102,843

28,803,917

#### Insurance

#### 9.4%
Arthur

J

Gallagher

&

Co.

..............................

United

States

132,908

34,395,261

ASR

Nederland

NV

..................................

Netherlands

620,436

44,144,516

a

Brighthouse

Financial,

Inc.

............................

United

States

404,231

26,190,126

Everest

Group

Ltd.

..................................

United

States

60,558

20,550,357

Hartford

Insurance

Group,

Inc.

(The)

.....................

United

States

298,639

41,152,454

Progressive

Corp.

(The)

..............................

United

States

188,344

42,889,696

Prudential

plc

......................................

Hong

Kong

2,822,698

43,421,783

252,744,193

#### Interactive

#### Media

#### &

#### Services

#### 4.2%
Alphabet,

Inc.

,

A

....................................

United

States

146,283

45,786,579

Meta

Platforms,

Inc.

,

A

...............................

United

States

101,284

66,856,556

112,643,135

#### Machinery

#### 2.1%
CNH

Industrial

NV

...................................

United

States

2,105,510

19,412,802

Dover

Corp.

.......................................

United

States

193,761

37,829,898

57,242,700

#### Media

#### 0.9%
a

Charter

Communications,

Inc.

,

A

........................

United

States

88,196

18,410,915

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Media
(continued)

a

Clear

Channel

Outdoor

Holdings,

Inc.

....................

United

States

2,903,448

$

6,416,620

24,827,535

#### Metals

#### &

#### Mining

#### 1.5%
ArcelorMittal

SA

....................................

Luxembourg

50,000

2,295,976

Rio

Tinto

plc

.......................................

Australia

485,194

39,082,883

41,378,859

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels

#### 3.4%
BP

plc

............................................

United

States

7,437,892

43,377,518

EOG

Resources,

Inc.

................................

United

States

455,694

47,852,427

91,229,945

#### Pharmaceuticals

#### 5.3%
Merck

&

Co.,

Inc.

...................................

United

States

317,089

33,376,788

Novartis

AG

,

ADR

...................................

United

States

369,966

51,007,213

Roche

Holding

AG

..................................

United

States

141,429

58,405,973

142,789,974

#### Software

#### 1.5%
a

Adobe,

Inc.

........................................

United

States

113,377

39,680,816

#### Specialized

#### REITs

#### 1.0%
American

Tower

Corp.

................................

United

States

159,280

27,964,790

#### Specialty

#### Retail

#### 2.4%
Dick's

Sporting

Goods,

Inc.

............................

United

States

112,334

22,238,762

Gap,

Inc.

(The)

.....................................

United

States

1,621,591

41,512,730

63,751,492

#### Technology

#### Hardware,

#### Storage

#### &

#### Peripherals

#### 0.8%
Samsung

Electronics

Co.

Ltd.

..........................

South

Korea

263,817

22,111,795

#### Tobacco

#### 1.4%
British

American

Tobacco

plc

...........................

United

Kingdom

642,183

36,405,775

#### Trading

#### Companies

#### &

#### Distributors

#### 2.7%
AerCap

Holdings

NV

.................................

Ireland

255,531

36,735,136

United

Rentals,

Inc.

..................................

United

States

44,596

36,092,435

72,827,571

#### Total

#### Common

#### Stocks

#### (Cost

#### $

#### 1,782,961,915

####)
..................................

#### 2,199,761,409

#### Preferred

#### Stocks

#### 0.9%

#### Diversified

#### Telecommunication

#### Services

#### 0.4%
a,b,c

Uniti

Group,

Inc.

....................................

United

States

10,941

10,791,029

#### Technology

#### Hardware,

#### Storage

#### &

#### Peripherals

#### 0.5%
e

Samsung

Electronics

Co.

Ltd.

,

.23

%

....................

South

Korea

238,730

14,818,166

#### Total

#### Preferred

#### Stocks

#### (Cost

#### $

#### 23,266,437

####)
....................................

#### 25,609,195
Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Country

#### Rights
a

#### Value
a

a

#### a
a

#### Rights

#### 0.1%

#### Media

#### 0.1%
a,b

SES

SA

,

1/17/33

....................................

Luxembourg

106,029

$

1,656,703

#### Total

#### Rights

#### (Cost

#### $

#### –

####)
......................................................

#### 1,656,703

#### Warrants

#### 0.1%

#### Diversified

#### Telecommunication

#### Services

#### 0.1%
a,b,c

Uniti

Group,

Inc.

,

8/01/35

.............................

United

States

334,087

2,018,557

#### Total

#### Warrants

#### (Cost

#### $

#### 1,603,618

####)
............................................

#### 2,018,557

#### Principal

#### Amount

#### \*

#### Convertible

#### Bonds

#### 0.2%

#### Automobiles

#### 0.2%
f

Lucid

Group,

Inc.

,

Senior

Note

,

144A,

1.25 %

,

12/15/26

.......

United

States

7,500,000

6,975,000

#### Total

#### Convertible

#### Bonds

#### (Cost

#### $

#### 7,112,466

####)
....................................

#### 6,975,000

#### Corporate

#### Bonds

#### 3.7%

#### Commercial

#### Services

#### &

#### Supplies

#### 1.3%
f

Neptune

Bidco

US,

Inc.

,

Senior

Secured

Note

,

144A,

10.375 %

,

5/15/31

.........................................

United

States

34,440,400

35,332,785

#### Media

#### 0.9%
f

DISH

Network

Corp.

,

Senior

Secured

Note

,

144A,

11.75 %

,

11/15/27

........................................

United

States

22,000,000

22,910,470

#### Specialty

#### Retail

#### 1.5%
f

Michaels

Cos.,

Inc.

(The)

,

Senior

Note

,

144A,

7.875 %

,

5/01/29

.

United

States

12,262,000

11,335,678

f

Staples,

Inc.

,

Secured

Note

,

144A,

12.75 %

,

1/15/30

..................

United

States

26,000,000

21,847,492

Senior

Secured

Note

,

144A,

10.75 %

,

9/01/29

............

United

States

8,000,000

7,963,526

41,146,696

#### Total

#### Corporate

#### Bonds

#### (Cost

#### $

#### 91,505,250

####)
....................................

#### 99,389,951
g

#### Senior

#### Floating

#### Rate

#### Interests

#### 10.5%
h

#### Commercial

#### Services

#### &

#### Supplies

#### 2.0%
Neptune

Bidco

US,

Inc.,

First

Lien,

CME

Term

Loan,

A

,

8.762 %

,

(3-month

SOFR

+

4.75 %),

10/11/28

....................

United

States

42,531,765

42,070,295

Neptune

Bidco

US,

Inc.,

Second

Lien,

CME

Term

Loan

,

13.762 %

,

(3-month

SOFR

+

9.75 %),

10/11/29

....................

United

States

10,993,488

11,034,714

53,105,009

a

a

a

a

a

a

#### Communications

#### Equipment

#### 0.5%
h

CommScope,

Inc.,

First

Lien,

Initial

CME

Term

Loan

,

8.466 %

,

(1-month

SOFR

+

4.75 %),

12/18/29

....................

United

States

12,000,000

12,038,160

#### Financial

#### Services

#### 0.9%
h,i

Travelport

Finance

Luxembourg

SARL,

First

Lien,

Priority

CME

Term

Loan

,

PIK,

9.426 %

,

(3-month

SOFR

+

5.441 %),

9/29/28

Luxembourg

28,928,539

24,882,160

#### Media

#### 0.1%
h,j

Loyalty

Ventures,

Inc.,

First

Lien,

Term

Loan,

B

,

12.25 %

,

(PRIME

+

5.5 %),

11/03/27

..................................

United

States

26,135,994

2,352,240

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Country

#### Principal

#### Amount

#### \*
a

#### Value
a

#### a
a

g

#### Senior

#### Floating

#### Rate

#### Interests
(continued)

h

#### Passenger

#### Airlines

#### 0.7%
AAdvantage

Loyalty

IP

Ltd.,

First

Lien,

CME

Term

Loan

,

6.134 %

,

(3-month

SOFR

+

2.25 %),

4/20/28

.....................

United

States

1,763,379

$

1,769,771

American

Airlines,

Inc.,

First

Lien,

Initial

CME

Term

Loan

,

6.258 %

,

(6-month

SOFR

+

2.25 %),

6/04/29

.....................

United

States

17,697,648

17,744,723

19,514,494

a

a

a

a

a

a

#### Professional

#### Services

#### 0.3%
h

CoreLogic,

Inc.,

First

Lien,

Initial

CME

Term

Loan

,

7.331 %

,

(1-month

SOFR

+

3.5 %),

6/02/28

......................

United

States

7,523,562

7,540,641

h

#### Specialty

#### Retail

#### 0.7%
Michaels

Cos.,

Inc.

(The),

First

Lien,

CME

Term

Loan,

B

,

8.184 %

,

(3-month

SOFR

+

4.25 %),

4/17/28

.....................

United

States

10,531,978

10,209,067

Staples,

Inc.,

First

Lien,

Closing

Date

CME

Term

Loan

,

9.604 %

,

(3-month

SOFR

+

5.75 %),

8/23/29

.....................

United

States

9,837,500

9,367,120

19,576,187

a

a

a

a

a

a

#### Wireless

#### Telecommunication

#### Services

#### 5.3%
b,d,i

Sorenson

Holdings

LLC,

First

Lien,

Term

Loan,

A

,

PIK,

%

,

4/01/30

.........................................

United

States

33,331,739

33,242,678

b,d,i

Sorenson

Holdings

LLC,

First

Lien,

Term

Loan,

B

,

PIK,

%

,

4/01/30

.........................................

United

States

127,468,696

110,433,063

143,675,741

a

a

a

a

a

a

#### Total

#### Senior

#### Floating

#### Rate

#### Interests

#### (Cost

#### $

#### 312,197,307

####)
.......................

#### 282,684,632

#### Shares
a

#### Companies

#### in

#### Liquidation

#### 0.0%
a,b,k

Bosgen

Liquidating

Trust

c/o

Verdolino

and

Lowey

P.C.,

Contingent

Distribution

..............................

Netherlands

159,828

—

a,b,k

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

....

United

States

7,443,000

—

#### Total

#### Companies

#### in

#### Liquidation

#### (Cost

#### $

#### –

####)
....................................

#### —

#### Total

#### Long

#### Term

#### Investments

#### (Cost

#### $

#### 2,218,646,993

####)
...........................

#### 2,618,095,447

#### a

#### Short

#### Term

#### Investments

#### 2.0%
a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Money

#### Market

#### Funds

#### 2.0%
l,m

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.681 %

.........................................

United

States

55,200,340

55,200,340

#### Total

#### Money

#### Market

#### Funds

#### (Cost

#### $

#### 55,200,340

####)
................................

#### 55,200,340

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $

#### 55,200,340

####)
..............................

#### 55,200,340

#### a

#### Total

#### Investments

#### (Cost

#### $

#### 2,273,847,333

####)
99.0 #### %
................................

#### $2,673,295,787

#### Other

#### Assets,

#### less

#### Liabilities
1.0 #### %
...........................................

#### 26,855,631

#### Net

#### Assets

#### 100.0%

#### .........................................................

#### $2,700,151,418

#### a
Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

See

Abbreviations

on

.

\*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

c

See

Note

regarding

restricted

securities.

d

See

Note

regarding

holdings

of

5%

voting

securities.

e

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

f

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933. 144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933. Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2025,

the

aggregate

value

of

these

securities

was

$106,364,951,

representing

3.9%

of

net

assets.

g

See

Note

1(f)

regarding

senior

floating

rate

interests.

h

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

i

Income

may

be

received

in

additional

securities

and/or

cash.

j

Defaulted

security

or

security

for

which

income

has

been

deemed

uncollectible.

See

Note

7. k

Contingent

distributions

represent

the

right

to

receive

additional

distributions,

if

any,

during

the

reorganization

of

the

underlying

company.

Shares

represent

total

underlying

principal

of

debt

securities.

l

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

m

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Shares

#### Fund
franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### Z

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.93

$24.53

$22.86

$27.09

$25.33

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.48 0.55 0.51 0.43 0.39 Net

realized

and

unrealized

gains

(losses)

...........

2.45 2.27 2.61 (2.45)

4.43 Total

from

investment

operations

....................

2.93 2.82 3.12 (2.02)

4.82 Less

distributions

from:

Net

investment

income

..........................

(0.48)

(0.52)

(0.50)

(0.37)

(0.94)

Net

realized

gains

.............................

(1.49)

(1.90)

(0.95)

(1.84)

(2.12)

Total

distributions

...............................

(1.97)

(2.42)

(1.45)

(2.21)

(3.06)

Net

asset

value,

end

of

year

.......................

$25.89

$24.93

$24.53

$22.86

$27.09

Total

return

....................................

11.77%

11.51%

13.93%

(7.11)%

19.34%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

c

.....................................

0.74%

d

0.75%

0.75%

d,e

0.75%

e

0.81%

d,e

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

f

—%

f

0.02%

Net

investment

income

...........................

1.86%

2.07%

2.16%

1.70%

1.36%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$3,985,726

$3,946,804

$3,894,722

$3,785,598

$4,717,528

Portfolio

turnover

rate

............................

51.72%

33.08%

35.16%

59.69%

41.18%

g

#### 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
Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

#### d
Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

#### e
Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

#### f
Rounds

to

less

than

0.01%.

#### g
Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Shares

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### A

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.52

$24.16

$22.54

$26.75

$25.04

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.41 0.47 0.45 0.36 0.31 Net

realized

and

unrealized

gains

(losses)

...........

2.39 2.24 2.57 (2.42)

4.39 Total

from

investment

operations

....................

2.80 2.71 3.02 (2.06)

4.70 Less

distributions

from:

Net

investment

income

..........................

(0.41)

(0.45)

(0.45)

(0.31)

(0.87)

Net

realized

gains

.............................

(1.49)

(1.90)

(0.95)

(1.84)

(2.12)

Total

distributions

...............................

(1.90)

(2.35)

(1.40)

(2.15)

(2.99)

Net

asset

value,

end

of

year

.......................

$25.42

$24.52

$24.16

$22.54

$26.75

Total

return

c

...................................

11.46%

11.23%

13.64%

(7.35)%

19.07%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

d

....................................

0.99%

e

1.00%

1.00%

e,f

1.00%

f

1.06%

e,f

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

g

—%

g

0.02%

Net

investment

income

...........................

1.61%

1.83%

1.91%

1.45%

1.11%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$2,637,042

$2,688,933

$2,726,473

$2,601,790

$3,125,320

Portfolio

turnover

rate

............................

51.72%

33.08%

35.16%

59.69%

41.18%

h

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Shares

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### C

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.86

$24.43

$22.55

$26.75

$25.02

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.22 0.28 0.26 0.17 0.10 Net

realized

and

unrealized

gains

(losses)

...........

2.41 2.26 2.59 (2.41)

4.37 Total

from

investment

operations

....................

2.63 2.54 2.85 (2.24)

4.47 Less

distributions

from:

Net

investment

income

..........................

(0.20)

(0.21)

(0.02)

(0.12)

(0.62)

Net

realized

gains

.............................

(1.49)

(1.90)

(0.95)

(1.84)

(2.12)

Total

distributions

...............................

(1.69)

(2.11)

(0.97)

(1.96)

(2.74)

Net

asset

value,

end

of

year

.......................

$25.80

$24.86

$24.43

$22.55

$26.75

Total

return

c

...................................

10.61%

10.42%

12.85%

(8.04)%

18.13%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

d

....................................

1.74%

e

1.75%

1.75%

e,f

1.75%

f

1.81%

e,f

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

g

—%

g

0.02%

Net

investment

income

...........................

0.87%

1.08%

1.10%

0.69%

0.35%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$31,254

$37,704

$47,522

$158,150

$192,660

Portfolio

turnover

rate

............................

51.72%

33.08%

35.16%

59.69%

41.18%

h

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Shares

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.42

$24.06

$22.45

$26.65

$24.96

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.34 0.41 0.39 0.29 0.24 Net

realized

and

unrealized

gains

(losses)

...........

2.38 2.23 2.55 (2.40)

4.36 Total

from

investment

operations

....................

2.72 2.64 2.94 (2.11)

4.60 Less

distributions

from:

Net

investment

income

..........................

(0.35)

(0.38)

(0.38)

(0.25)

(0.79)

Net

realized

gains

.............................

(1.49)

(1.90)

(0.95)

(1.84)

(2.12)

Total

distributions

...............................

(1.84)

(2.28)

(1.33)

(2.09)

(2.91)

Net

asset

value,

end

of

year

.......................

$25.30

$24.42

$24.06

$22.45

$26.65

Total

return

....................................

11.16%

10.99%

13.36%

(7.60)%

18.75%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

c

.....................................

1.24%

d

1.25%

1.25%

d,e

1.25%

e

1.31%

d,e

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

f

—%

f

0.02%

Net

investment

income

...........................

1.36%

1.58%

1.66%

1.19%

0.86%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$35,548

$36,870

$38,681

$38,759

$49,843

Portfolio

turnover

rate

............................

51.72%

33.08%

35.16%

59.69%

41.18%

g

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Mutual

Series

Funds

Financial

Highlights

#### Franklin

#### Mutual

#### Shares

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### 2024

#### 2023

#### 2022

#### 2021

#### Class

#### R6

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.91

$24.51

$22.84

$27.07

$25.32

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.49 0.56 0.52 0.44 0.39 Net

realized

and

unrealized

gains

(losses)

...........

2.44 2.27 2.62 (2.44)

4.43 Total

from

investment

operations

....................

2.93 2.83 3.14 (2.00)

4.82 Less

distributions

from:

Net

investment

income

..........................

(0.49)

(0.53)

(0.52)

(0.39)

(0.95)

Net

realized

gains

.............................

(1.49)

(1.90)

(0.95)

(1.84)

(2.12)

Total

distributions

...............................

(1.98)

(2.43)

(1.47)

(2.23)

(3.07)

Net

asset

value,

end

of

year

.......................

$25.86

$24.91

$24.51

$22.84

$27.07

Total

return

....................................

11.79%

11.57%

14.00%

(7.05)%

19.37%

#### Ratios

#### to

#### average

#### net

#### assets
Expenses

c

.....................................

0.70%

d

0.70%

0.71%

d,e

0.68%

e

0.74%

d,e

Expenses

-

incurred

in

connection

with

securities

sold

short

—%

—%

—%

f

—%

f

0.02%

Net

investment

income

...........................

1.91%

2.12%

2.21%

1.76%

1.40%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.....................

$328,746

$329,655

$302,249

$286,332

$372,115

Portfolio

turnover

rate

............................

51.72%

33.08%

35.16%

59.69%

41.18%

g

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

Includes

dividends

and/or

interest

expense

on

securities

sold

short

and

security

borrowing

fees,

if

any.

See

below

for

the

ratios

of

such

expenses

to

average

net

assets

for

the

periods

presented.

See

Note

1(d).

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Mutual

Series

Funds

Schedule

of

Investments,

December

31,

2025

#### Franklin

#### Mutual

#### Shares

#### Fund
franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks

#### 96.1%

#### Automobiles

#### 1.9%
General

Motors

Co.

..................................

United

States

1,613,850

$

131,238,282

#### Banks

#### 8.5%
Bank

of

America

Corp.

...............................

United

States

2,729,124

150,101,820

JPMorgan

Chase

&

Co.

...............................

United

States

497,507

160,306,706

PNC

Financial

Services

Group,

Inc.

(The)

.................

United

States

670,802

140,016,501

Wells

Fargo

&

Co.

...................................

United

States

1,563,209

145,691,079

596,116,106

#### Broadline

#### Retail

#### 2.9%
a

Amazon.com,

Inc.

...................................

United

States

889,735

205,368,633

#### Building

#### Products

#### 2.3%
Johnson

Controls

International

plc

.......................

United

States

1,357,590

162,571,402

#### Capital

#### Markets

#### 1.9%
BlackRock,

Inc.

.....................................

United

States

124,720

133,492,805

#### Chemicals

#### 1.7%
PPG

Industries,

Inc.

.................................

United

States

1,147,600

117,583,096

#### Communications

#### Equipment

#### 1.8%
Cisco

Systems,

Inc.

.................................

United

States

1,629,061

125,486,569

#### Consumer

#### Finance

#### 1.9%
Capital

One

Financial

Corp.

...........................

United

States

535,230

129,718,343

#### Consumer

#### Staples

#### Distribution

#### &

#### Retail

#### 2.3%
Dollar

General

Corp.

.................................

United

States

1,223,978

162,507,559

#### Containers

#### &

#### Packaging

#### 1.7%
International

Paper

Co.

...............................

United

States

2,956,746

116,466,225

#### Diversified

#### Telecommunication

#### Services

#### 0.2%
a,b,c

Uniti

Group,

Inc.

....................................

United

States

2,243,497

15,335,635

#### Electric

#### Utilities

#### 3.5%
Entergy

Corp.

......................................

United

States

1,236,257

114,267,235

PPL

Corp.

.........................................

United

States

3,769,704

132,015,034

246,282,269

#### Electronic

#### Equipment,

#### Instruments

#### &

#### Components

#### 1.0%
a

Flex

Ltd.

..........................................

United

States

1,199,663

72,483,638

#### Energy

#### Equipment

#### &

#### Services

#### 1.6%
SLB

Ltd.

..........................................

United

States

2,846,080

109,232,550

#### Entertainment

#### 2.3%
Walt

Disney

Co.

(The)

................................

United

States

1,400,106

159,290,060

#### Financial

#### Services

#### 2.8%
Apollo

Global

Management,

Inc.

........................

United

States

852,664

123,431,641

a

Fiserv,

Inc.

........................................

United

States

1,120,020

75,231,743

198,663,384

#### Food

#### Products

#### 1.6%
Nestle

SA

.........................................

United

States

1,139,721

113,127,705

#### Ground

#### Transportation

#### 1.5%
Union

Pacific

Corp.

..................................

United

States

467,173

108,066,458

#### Health

#### Care

#### Equipment

#### &

#### Supplies

#### 4.2%
a

Cooper

Cos.,

Inc.

(The)

...............................

United

States

1,339,046

109,748,210

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Shares

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Health

#### Care

#### Equipment

#### &

#### Supplies
(continued)

Medtronic

plc

......................................

United

States

1,218,190

$

117,019,332

Zimmer

Biomet

Holdings,

Inc.

..........................

United

States

721,121

64,843,200

291,610,742

#### Health

#### Care

#### Providers

#### &

#### Services

#### 0.8%
Elevance

Health,

Inc.

................................

United

States

159,336

55,855,235

#### Household

#### Products

#### 2.1%
Colgate-Palmolive

Co.

...............................

United

States

1,903,253

150,395,052

#### Insurance

#### 4.6%
Hartford

Insurance

Group,

Inc.

(The)

.....................

United

States

1,233,537

169,981,399

Progressive

Corp.

(The)

..............................

United

States

675,573

153,841,483

323,822,882

#### Interactive

#### Media

#### &

#### Services

#### 3.6%
Alphabet,

Inc.

,

A

....................................

United

States

799,105

250,119,865

#### Life

#### Sciences

#### Tools

#### &

#### Services

#### 2.5%
Thermo

Fisher

Scientific,

Inc.

..........................

United

States

298,605

173,026,667

#### Machinery

#### 2.4%
Dover

Corp.

.......................................

United

States

851,790

166,303,480

#### Metals

#### &

#### Mining

#### 2.0%
Reliance,

Inc.

......................................

United

States

482,258

139,309,868

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels

#### 3.9%
Chevron

Corp.

.....................................

United

States

967,849

147,509,866

EOG

Resources,

Inc.

................................

United

States

1,228,342

128,988,193

276,498,059

#### Personal

#### Care

#### Products

#### 1.9%
Estee

Lauder

Cos.,

Inc.

(The)

,

A

........................

United

States

1,286,788

134,752,439

#### Pharmaceuticals

#### 8.5%
Haleon

plc

........................................

United

States

35,943,104

181,634,204

Merck

&

Co.,

Inc.

...................................

United

States

1,061,677

111,752,121

Novartis

AG

,

ADR

...................................

United

States

1,101,492

151,862,702

Roche

Holding

AG

..................................

United

States

366,441

151,329,241

596,578,268

#### Professional

#### Services

#### 2.4%
KBR,

Inc.

.........................................

United

States

1,737,133

69,832,747

SS&C

Technologies

Holdings,

Inc.

.......................

United

States

1,155,408

101,005,767

170,838,514

#### Retail

#### REITs

#### 1.9%
Brixmor

Property

Group,

Inc.

...........................

United

States

5,080,366

133,207,197

#### Semiconductors

#### &

#### Semiconductor

#### Equipment

#### 1.6%
NXP

Semiconductors

NV

.............................

Netherlands

500,783

108,699,958

#### Software

#### 3.4%
a

Adobe,

Inc.

........................................

United

States

385,414

134,891,046

Gen

Digital,

Inc.

....................................

United

States

3,914,948

106,447,436

241,338,482

#### Specialized

#### REITs

#### 1.6%
American

Tower

Corp.

................................

United

States

645,987

113,415,938

Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Shares

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Common

#### Stocks
(continued)

#### Specialty

#### Retail

#### 2.0%
a

Ulta

Beauty,

Inc.

....................................

United

States

233,211

$

141,094,987

#### Tobacco

#### 1.7%
British

American

Tobacco

plc

...........................

United

Kingdom

2,127,092

120,586,239

#### Trading

#### Companies

#### &

#### Distributors

#### 3.6%
AerCap

Holdings

NV

.................................

Ireland

758,572

109,052,311

Ferguson

Enterprises,

Inc.

............................

United

States

656,113

146,070,437

255,122,748

#### Total

#### Common

#### Stocks

#### (Cost

#### $

#### 5,089,093,073

####)
..................................

#### 6,745,607,339

#### Preferred

#### Stocks

#### 0.2%

#### Diversified

#### Telecommunication

#### Services

#### 0.2%
a,b,c

Uniti

Group,

Inc.

....................................

United

States

14,312

14,116,549

#### Total

#### Preferred

#### Stocks

#### (Cost

#### $

#### 12,458,840

####)
....................................

#### 14,116,549

#### Warrants

#### 0.1%

#### Diversified

#### Telecommunication

#### Services

#### 0.1%
a,b,c

Uniti

Group,

Inc.

,

8/01/35

.............................

United

States

437,045

2,640,630

#### Total

#### Warrants

#### (Cost

#### $

#### 2,097,816

####)
............................................

#### 2,640,630

#### Principal

#### Amount

#### \*

#### Corporate

#### Bonds

#### 0.6%

#### Commercial

#### Services

#### &

#### Supplies

#### 0.2%
d

Neptune

Bidco

US,

Inc.

,

Senior

Secured

Note

,

144A,

10.375 %

,

5/15/31

.........................................

United

States

17,392,800

17,843,465

#### Specialty

#### Retail

#### 0.4%
d

Michaels

Cos.,

Inc.

(The)

,

Senior

Note

,

144A,

7.875 %

,

5/01/29

.

United

States

27,532,000

25,452,120

#### Total

#### Corporate

#### Bonds

#### (Cost

#### $

#### 36,352,629

####)
....................................

#### 43,295,585
e

#### Senior

#### Floating

#### Rate

#### Interests

#### 1.9%
f

#### Commercial

#### Services

#### &

#### Supplies

#### 0.9%
Neptune

Bidco

US,

Inc.,

First

Lien,

CME

Term

Loan,

A

,

8.762 %

,

(3-month

SOFR

+

4.75 %),

10/11/28

....................

United

States

37,326,071

36,921,083

Neptune

Bidco

US,

Inc.,

First

Lien,

Dollar

CME

Term

Loan,

B

,

9.012 %

,

(3-month

SOFR

+

%),

4/11/29

.................

United

States

28,628,999

28,374,917

65,296,000

a

a

a

a

a

a

#### Professional

#### Services

#### 0.4%
f

CoreLogic,

Inc.,

First

Lien,

Initial

CME

Term

Loan

,

7.331 %

,

(1-month

SOFR

+

3.5 %),

6/02/28

......................

United

States

30,607,127

30,676,605

#### Specialty

#### Retail

#### 0.6%
f

Michaels

Cos.,

Inc.

(The),

First

Lien,

CME

Term

Loan,

B

,

8.184 %

,

(3-month

SOFR

+

4.25 %),

4/17/28

.....................

United

States

40,220,901

38,987,728

#### Total

#### Senior

#### Floating

#### Rate

#### Interests

#### (Cost

#### $

#### 125,513,359

####)
.......................

#### 134,960,333
Franklin

Mutual

Series

Funds

Schedule

of

Investments

#### Franklin

#### Mutual

#### Shares

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

See

Abbreviations

on

.

a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Companies

#### in

#### Liquidation

#### 0.0%
a,b,g

Bosgen

Liquidating

Trust

c/o

Verdolino

and

Lowey

P.C.,

Contingent

Distribution

..............................

Netherlands

555,154

$

—

a,b,g

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

....

United

States

20,046,000

—

#### Total

#### Companies

#### in

#### Liquidation

#### (Cost

#### $

#### –

####)
....................................

#### —

#### Total

#### Long

#### Term

#### Investments

#### (Cost

#### $

#### 5,265,515,717

####)
...........................

#### 6,940,620,436

#### a

#### Short

#### Term

#### Investments

#### 0.2%
a

a

#### Country

#### Shares
a

#### Value
a

a

#### a
a

#### Money

#### Market

#### Funds

#### 0.2%
h,i

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.681 %

.........................................

United

States

17,117,735

17,117,735

#### Total

#### Money

#### Market

#### Funds

#### (Cost

#### $

#### 17,117,735

####)
................................

#### 17,117,735

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $

#### 17,117,735

####)
..............................

#### 17,117,735

#### a

#### Total

#### Investments

#### (Cost

#### $

#### 5,282,633,452

####)
99.1 #### %
................................

#### $6,957,738,171

#### Other

#### Assets,

#### less

#### Liabilities
0.9 #### %
...........................................

#### 60,578,214

#### Net

#### Assets

#### 100.0%

#### .........................................................

#### $7,018,316,385

#### a
\*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

c

See

Note

regarding

restricted

securities.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933. 144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933. Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2025,

the

aggregate

value

of

these

securities

was

$43,295,585,

representing

0.6%

of

net

assets.

e

See

Note

1(f)

regarding

senior

floating

rate

interests.

f

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

g

Contingent

distributions

represent

the

right

to

receive

additional

distributions,

if

any,

during

the

reorganization

of

the

underlying

company.

Shares

represent

total

underlying

principal

of

debt

securities.

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2025

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$2,353,860,244

$6,865,796,065

$951,721,907

Cost

-

Non-controlled

affiliates

(Note

f)

......................

34,227,113

164,225,510

22,537,482

Value

-

Unaffiliated

issuers

................................

$3,471,087,802

$9,245,543,043

$1,218,989,633

Value

-

Non-controlled

affiliates

(Note

f)

......................

34,227,113

164,225,510

22,537,482

Cash

..................................................

2,171

9,881,236

—

Foreign

currency,

at

value

(cost

$–,

$–

and

$100,093,

respectively)

...

—

—

108,470

Receivables:

Investment

securities

sold

.................................

—

37,569,928

6,220,203

Capital

shares

sold

......................................

380,218

1,601,479

2,625,379

Dividends

and

interest

...................................

8,215,558

26,973,372

3,316,471

European

Union

tax

reclaims

(Note

g)

.......................

—

—

339,548

Total

assets

........................................

3,513,912,862

9,485,794,568

1,254,137,186

Liabilities:

Payables:

Investment

securities

purchased

............................

—

578,803

4,400,635

Capital

shares

redeemed

.................................

1,415,946

5,633,808

820,136

Management

fees

.......................................

2,005,722

6,752,925

895,883

Distribution

fees

........................................

200,221

1,287,249

93,705

Transfer

agent

fees

......................................

382,076

1,562,059

241,796

Trustees'

fees

and

expenses

...............................

179,081

794,354

106,288

Accrued

expenses

and

other

liabilities

.........................

249,058

540,479

151,023

Total

liabilities

.......................................

4,432,104

17,149,677

6,709,466

Net

assets,

at

value

...............................

$3,509,480,758

$9,468,644,891

$1,247,427,720

Net

assets

consist

of:

Paid-in

capital

...........................................

$2,301,433,116

$6,894,052,500

$952,034,708

Total

distributable

earnings

(losses)

...........................

1,208,047,642

2,574,592,391

295,393,012

Net

assets,

at

value

...............................

$3,509,480,758

$9,468,644,891

$1,247,427,720

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2025

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Class

#### Z:
Net

assets,

at

value

.....................................

$2,338,041,669

$3,369,991,909

$786,654,360

Shares

outstanding

......................................

125,719,793

105,009,811

24,024,586

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$18.60

$32.09

$32.74

#### Class

#### A:
Net

assets,

at

value

.....................................

$883,954,038

$5,392,716,868

$401,408,768

Shares

outstanding

......................................

48,280,517

174,393,382

12,703,001

Net

asset

value

per

share

a,b

................................

$18.31

$30.92

$31.60

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

a

..............................................

$19.38

$32.72

$33.44

#### Class

#### C:
Net

assets,

at

value

.....................................

$14,036,615

$117,207,760

$8,350,456

Shares

outstanding

......................................

756,992

3,744,360

257,796

Net

asset

value

and

maximum

offering

price

per

share

a,b

..........

$18.54

$31.30

$32.39

#### Class

#### R:
Net

assets,

at

value

.....................................

$1,438,554

$106,741,410

$6,982,606

Shares

outstanding

......................................

80,142

3,530,302

227,859

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$17.95

$30.24

$30.64

#### Class

#### R6:
Net

assets,

at

value

.....................................

$272,009,882

$481,986,944

$44,031,530

Shares

outstanding

......................................

14,636,976

15,033,075

1,345,323

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$18.58

$32.06

$32.73

a

Net

asset

value

per

share

may

not

recalculate

due

to

rounding.

b

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2025

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

..................................................

$2,061,038,351

$5,265,515,717

Cost

-

Non-controlled

affiliates

(Note

f

and

11)

..................................

212,808,982

17,117,735

Value

-

Unaffiliated

issuers

.................................................

$2,449,642,235

$6,940,620,436

Value

-

Non-controlled

affiliates

(Note

f

and

11)

.................................

223,653,552

17,117,735

Cash

...................................................................

7,239,523

7,465,394

Receivables:

Investment

securities

sold

..................................................

15,933,803

47,223,419

Capital

shares

sold

.......................................................

272,436

1,660,188

Dividends

and

interest

....................................................

9,499,052

13,158,145

European

Union

tax

reclaims

(Note

g)

........................................

805,181

748,091

Total

assets

.........................................................

2,707,045,782

7,027,993,408

Liabilities:

Payables:

Investment

securities

purchased

.............................................

2,288,949

193,830

Capital

shares

redeemed

..................................................

2,045,878

3,238,898

Management

fees

........................................................

1,535,470

3,978,033

Distribution

fees

.........................................................

139,974

603,020

Transfer

agent

fees

.......................................................

245,045

690,833

Trustees'

fees

and

expenses

................................................

229,330

716,867

Accrued

expenses

and

other

liabilities

..........................................

409,718

255,542

Total

liabilities

........................................................

6,894,364

9,677,023

Net

assets,

at

value

................................................

$2,700,151,418

$7,018,316,385

Net

assets

consist

of:

Paid-in

capital

............................................................

$2,745,366,296

$5,153,037,094

Total

distributable

earnings

(losses)

............................................

(45,214,878)

1,865,279,291

Net

assets,

at

value

................................................

$2,700,151,418

$7,018,316,385

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2025

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund

#### Class

#### Z:
Net

assets,

at

value

......................................................

$2,075,099,369

$3,985,726,160

Shares

outstanding

.......................................................

129,711,265

153,944,223

Net

asset

value

and

maximum

offering

price

per

share

a

............................

$16.00

$25.89

#### Class

#### A:
Net

assets,

at

value

......................................................

$570,722,217

$2,637,042,411

Shares

outstanding

.......................................................

36,390,803

103,724,256

Net

asset

value

per

share

a,b

.................................................

$15.68

$25.42

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

a

...............

$16.59

$26.90

#### Class

#### C:
Net

assets,

at

value

......................................................

$20,236,292

$31,254,360

Shares

outstanding

.......................................................

1,291,278

1,211,216

Net

asset

value

and

maximum

offering

price

per

share

a,b

...........................

$15.67

$25.80

#### Class

#### R:
Net

assets,

at

value

......................................................

$3,586,454

$35,547,599

Shares

outstanding

.......................................................

233,338

1,404,822

Net

asset

value

and

maximum

offering

price

per

share

a

............................

$15.37

$25.30

#### Class

#### R6:
Net

assets,

at

value

......................................................

$30,507,086

$328,745,855

Shares

outstanding

.......................................................

1,909,727

12,710,524

Net

asset

value

and

maximum

offering

price

per

share

a

............................

$15.97

$25.86

a

Net

asset

value

per

share

may

not

recalculate

due

to

rounding.

b

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Operations

for

the

year

ended

December

31,

2025

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Investment

income:

Dividends:

(net

of

foreign

taxes

of

$2,756,463,

$9,137,447

and

$2,266,395,

respectively)

Unaffiliated

issuers

......................................

$75,495,203

$232,825,116

$31,481,889

Non-controlled

affiliates

(Note

f)

...........................

837,684

4,660,077

705,191

Interest:

Unaffiliated

issuers

......................................

773,517

34,807,584

594,254

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

...................

—

117,425

—

Other

income

(Note

g)

....................................

—

165,730

—

Total

investment

income

.................................

77,106,404

272,575,932

32,781,334

Expenses:

Management

fees

(Note

a)

.................................

22,133,249

76,978,485

8,235,415

Distribution

fees:

(Note

3c)

&nbsp;&nbsp;&nbsp;&nbsp;Class

A

..............................................

2,088,730

13,035,671

860,634

&nbsp;&nbsp;&nbsp;&nbsp;Class

C

..............................................

143,108

1,261,558

74,814

&nbsp;&nbsp;&nbsp;&nbsp;Class

R

..............................................

6,566

535,633

19,564

Transfer

agent

fees:

(Note

3e)

&nbsp;&nbsp;&nbsp;&nbsp;Class

Z

..............................................

1,362,180

2,960,011

928,548

&nbsp;&nbsp;&nbsp;&nbsp;Class

A

..............................................

521,995

4,770,995

494,312

&nbsp;&nbsp;&nbsp;&nbsp;Class

C

..............................................

8,941

115,704

10,727

&nbsp;&nbsp;&nbsp;&nbsp;Class

R

..............................................

821

98,105

5,753

&nbsp;&nbsp;&nbsp;&nbsp;Class

R6

.............................................

51,506

126,321

22,501

Custodian

fees

..........................................

107,345

302,939

—

Reports

to

shareholders

fees

................................

82,972

471,106

45,977

Registration

and

filing

fees

..................................

61,196

125,443

78,909

Professional

fees

.........................................

195,502

193,486

214,759

Trustees'

fees

and

expenses

................................

168,269

468,903

52,411

Dividends

on

securities

sold

short

............................

—

—

122,101

Other

..................................................

106,340

302,820

33,403

Total

expenses

.......................................

27,038,720

101,747,180

11,199,828

Expenses

waived/paid

by

affiliates

(Note

f

and

g)

............

(38,247)

(3,071)

(346,286)

Net

expenses

.......................................

27,000,473

101,744,109

10,853,542

Net

investment

income

..............................

50,105,931

170,831,823

21,927,792

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2025

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

268,898,527

961,625,507

121,489,190

Foreign

currency

transactions

..............................

100,436

1,021,997

(395,998)

Forward

exchange

contracts

...............................

—

(24,249,441)

—

Futures

contracts

.......................................

—

(21,618,301)

—

Securities

sold

short

.....................................

—

—

(1,003,289)

Net

realized

gain

(loss)

................................

268,998,963

916,779,762

120,089,903

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

426,034,867

865,037,986

185,831,664

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

...........................................

315,602

817,930

396,899

Forward

exchange

contracts

...............................

—

(21,974,694)

—

Futures

contracts

.......................................

—

(5,581,208)

—

Securities

sold

short

.....................................

—

—

(47,759)

Net

change

in

unrealized

appreciation

(depreciation)

..........

426,350,469

838,300,014

186,180,804

Net

realized

and

unrealized

gain

(loss)

..........................

695,349,432

1,755,079,776

306,270,707

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$745,455,363

$1,925,911,599

$328,198,499

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2025

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Investment

income:

Dividends:

(net

of

foreign

taxes

of

$1,601,792

and

$2,461,905,

respectively)

Unaffiliated

issuers

.......................................................

$52,662,582

$150,811,156

Non-controlled

affiliates

(Note

f

and

11)

.......................................

2,249,598

4,201,254

Interest:

Unaffiliated

issuers:

Payment-in-kind

........................................................

238,098

—

Paid

in

cash

a

..........................................................

42,372,131

27,157,016

Non-controlled

affiliates:

(Note

11)

Payment-in-kind

........................................................

6,664,114

—

Paid

in

cash

a

..........................................................

4,569,639

—

Other

income

(Note

g)

.....................................................

21,448

13,761

Total

investment

income

..................................................

108,777,610

182,183,187

Expenses:

Management

fees

(Note

a)

..................................................

17,807,812

46,631,854

Distribution

fees:

(Note

3c)

&nbsp;&nbsp;&nbsp;&nbsp;Class

A

...............................................................

1,402,552

6,610,835

&nbsp;&nbsp;&nbsp;&nbsp;Class

C

...............................................................

210,958

335,820

&nbsp;&nbsp;&nbsp;&nbsp;Class

R

...............................................................

17,788

180,703

Transfer

agent

fees:

(Note

3e)

&nbsp;&nbsp;&nbsp;&nbsp;Class

Z

...............................................................

1,175,576

2,562,862

&nbsp;&nbsp;&nbsp;&nbsp;Class

A

...............................................................

325,986

1,712,595

&nbsp;&nbsp;&nbsp;&nbsp;Class

C

...............................................................

12,243

21,703

&nbsp;&nbsp;&nbsp;&nbsp;Class

R

...............................................................

2,079

23,420

&nbsp;&nbsp;&nbsp;&nbsp;Class

R6

..............................................................

15,640

60,869

Custodian

fees

...........................................................

50,628

56,298

Reports

to

shareholders

fees

.................................................

89,696

206,702

Registration

and

filing

fees

...................................................

69,462

108,702

Professional

fees

..........................................................

197,289

199,020

Trustees'

fees

and

expenses

.................................................

137,082

362,203

Dividends

on

securities

sold

short

.............................................

409,713

—

Other

...................................................................

96,003

197,538

Total

expenses

........................................................

22,020,507

59,271,124

Expenses

waived/paid

by

affiliates

(Note

f

and

g)

.............................

(107,575)

(179,628)

Net

expenses

........................................................

21,912,932

59,091,496

Net

investment

income

...............................................

86,864,678

123,091,691

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2025

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

.....................................................

116,942,895

477,293,442

Written

options

..........................................................

577,637

—

Foreign

currency

transactions

...............................................

(140,214)

279,513

Forward

exchange

contracts

................................................

(1,847,638)

(11,079,299)

Futures

contracts

........................................................

(923,589)

(1,174,492)

Securities

sold

short

......................................................

(3,038,372)

—

Net

realized

gain

(loss)

.................................................

111,570,719

465,319,164

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

.....................................................

263,893,063

184,301,361

Non-controlled

affiliates

(Note

f

and

11)

.....................................

(31,291,953)

—

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

.............

252,467

103,088

Forward

exchange

contracts

................................................

(4,011,766)

(1,281,598)

Futures

contracts

........................................................

(275,551)

(454,302)

Securities

sold

short

......................................................

(160,279)

—

Net

change

in

unrealized

appreciation

(depreciation)

...........................

228,405,981

182,668,549

Net

realized

and

unrealized

gain

(loss)

...........................................

339,976,700

647,987,713

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................

$426,841,378

$771,079,404

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### Year

#### Ended

#### December

#### 31,

#### 2024

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### Year

#### Ended

#### December

#### 31,

#### 2024
Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$50,105,931

$59,343,674

$170,831,823

$175,107,689

Net

realized

gain

(loss)

............

268,998,963

147,153,491

916,779,762

907,106,803

Net

change

in

unrealized

appreciation

(depreciation)

.................

426,350,469

36,314,436

838,300,014

(650,780,636)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

745,455,363

242,811,601

1,925,911,599

431,433,856

Distributions

to

shareholders:

Class

Z

........................

(152,249,333)

(120,310,928)

(333,098,292)

(323,093,126)

Class

A

........................

(56,574,683)

(45,042,876)

(537,281,315)

(526,990,456)

Class

C

........................

(781,365)

(711,008)

(10,712,517)

(13,335,827)

Class

R

........................

(90,287)

(63,800)

(10,617,315)

(11,195,769)

Class

R6

.......................

(17,691,729)

(12,864,674)

(47,701,933)

(49,580,860)

Total

distributions

to

shareholders

.....

(227,387,397)

(178,993,286)

(939,411,372)

(924,196,038)

Capital

share

transactions:

(Note

2)

Class

Z

........................

(46,782,630)

(108,808,330)

(19,169,102)

94,087,029

Class

A

........................

(36,020,408)

(57,380,107)

(111,173,006)

65,300,778

Class

C

........................

(3,063,652)

(3,018,610)

(34,933,940)

(30,032,147)

Class

R

........................

75,267

(218,962)

(11,392,325)

(2,158,173)

Class

R6

.......................

15,229,210

(23,405,608)

(40,320,128)

(5,335,731)

Total

capital

share

transactions

.......

(70,562,213)

(192,831,617)

(216,988,501)

121,861,756

Net

increase

(decrease)

in

net

assets

.....................

447,505,753

(129,013,302)

769,511,726

(370,900,426)

Net

assets:

Beginning

of

year

..................

3,061,975,005

3,190,988,307

8,699,133,165

9,070,033,591

End

of

year

......................

$3,509,480,758

$3,061,975,005

$9,468,644,891

$8,699,133,165

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### Year

#### Ended

#### December

#### 31,

#### 2024

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### Year

#### Ended

#### December

#### 31,

#### 2024
Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$21,927,792

$16,209,401

$86,864,678

$104,366,772

Net

realized

gain

(loss)

............

120,089,903

54,949,679

111,570,719

104,825,589

Net

change

in

unrealized

appreciation

(depreciation)

.................

186,180,804

(43,247,266)

228,405,981

16,475,145

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

328,198,499

27,911,814

426,841,378

225,667,506

Distributions

to

shareholders:

Class

Z

........................

(23,925,331)

(14,258,473)

(84,019,558)

(96,037,093)

Class

A

........................

(11,717,063)

(7,993,478)

(22,307,126)

(26,054,943)

Class

C

........................

(188,741)

(121,817)

(639,141)

(891,944)

Class

R

........................

(185,470)

(45,028)

(134,127)

(122,847)

Class

R6

.......................

(1,349,669)

(698,748)

(1,252,011)

(1,452,581)

Total

distributions

to

shareholders

.....

(37,366,274)

(23,117,544)

(108,351,963)

(124,559,408)

Capital

share

transactions:

(Note

2)

Class

Z

........................

141,724,139

(18,814,173)

(129,832,761)

(142,501,419)

Class

A

........................

25,062,974

(11,376,847)

(46,036,163)

(56,884,263)

Class

C

........................

(109,679)

(2,613,444)

(5,100,712)

(6,182,262)

Class

R

........................

4,337,811

974,411

488,529

(137,685)

Class

R6

.......................

11,904,001

13,543,725

(2,336,998)

(2,927,801)

Total

capital

share

transactions

.......

182,919,246

(18,286,328)

(182,818,105)

(208,633,430)

Net

increase

(decrease)

in

net

assets

.....................

473,751,471

(13,492,058)

135,671,310

(107,525,332)

Net

assets:

Beginning

of

year

..................

773,676,249

787,168,307

2,564,480,108

2,672,005,440

End

of

year

......................

$1,247,427,720

$773,676,249

$2,700,151,418

$2,564,480,108

Franklin

Mutual

Series

Funds

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### Mutual

#### Shares

#### Fund

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### Year

#### Ended

#### December

#### 31,

#### 2024
Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$123,091,691

$142,326,996

Net

realized

gain

(loss)

.................................................

465,319,164

633,802,107

Net

change

in

unrealized

appreciation

(depreciation)

...........................

182,668,549

450,680

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

771,079,404

776,579,783

Distributions

to

shareholders:

Class

Z

.............................................................

(290,944,959)

(357,869,047)

Class

A

.............................................................

(189,206,438)

(238,418,891)

Class

C

.............................................................

(1,986,947)

(3,025,840)

Class

R

.............................................................

(2,478,445)

(3,187,409)

Class

R6

............................................................

(23,989,484)

(29,619,652)

Total

distributions

to

shareholders

..........................................

(508,606,273)

(632,120,839)

Capital

share

transactions:

(Note

2)

Class

Z

.............................................................

(110,773,875)

(26,710,256)

Class

A

.............................................................

(149,537,516)

(94,032,932)

Class

C

.............................................................

(7,788,646)

(11,227,751)

Class

R

.............................................................

(2,675,057)

(2,659,900)

Class

R6

............................................................

(13,347,335)

20,489,786

Total

capital

share

transactions

............................................

(284,122,429)

(114,141,053)

Net

increase

(decrease)

in

net

assets

...................................

(21,649,298)

30,317,891

Net

assets:

Beginning

of

year

.......................................................

7,039,965,683

7,009,647,792

End

of

year

...........................................................

$7,018,316,385

$7,039,965,683

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
Franklin

Mutual

Series

Funds (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of five 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

Funds

offer

five classes

of

shares:

Class

Z,

Class

A,

Class

C,

Class

R

and

Class

R6.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

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.

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

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

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-

counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

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.

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

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

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

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

p.m.

Eastern

time.

At

December

31,

2025,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

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. #### Derivative

#### Financial

#### Instruments
Certain

or

all

Funds

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statements

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statements

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

Certain

or

all Funds

attempt

to

reduce their

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

a. #### Financial

#### Instrument

#### Valuation
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Funds

include

failure

of

the

Funds

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statements

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Funds

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

or

at

the

broker and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Funds'

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Certain

or

all

Funds

entered

into

exchange

traded

futures

contracts

primarily

to

manage

exposure

to

certain

foreign

currencies. A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statements

of

Assets

and

Liabilities.

Futures

contracts

outstanding

at

period

end,

if

any,

are

listed

in

the

Funds'

Schedules

of

Investments.

Certain

or

all

Funds

entered

into

OTC forward

exchange

contracts

primarily

to

manage exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date. Forward

exchange

contracts

outstanding

at

period

end,

if

any,

are

listed

in

the

Funds'

Schedules

of

Investments.

Certain

or

all

Funds

purchased

or

wrote

exchange

traded

option

contracts

primarily

to

manage

exposure

to

equity

price

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss. Option contracts

outstanding

at

period

end,

if

any,

are

listed

in

the

Funds'

Schedules

of

Investments.

See

Note

regarding

other

derivative

information.

d. #### Securities

#### Sold

#### Short
Certain

or

all

Funds

are

engaged

in

selling

securities

short,

which

obligates

the

Fund

to

replace

a

borrowed

security

with

the

same

security

at

current

fair

value.

The

Fund

incurs

a

loss

if

the

price

of

the

security

increases

between

the

date

of

the

short

sale

and

the

date

on

which

the

Fund

replaces

the

borrowed

security.

The

Fund

realizes

a

gain

if

the

price

of

the

security

declines

between

those

dates.

Gains

are

limited

to

the

price

at

which

the

Fund

sold

the

security

short,

while

losses

are

potentially

unlimited

in

size.

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

c. #### Derivative

#### Financial

#### Instruments
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

The

Fund

is

required

to

establish

a

margin

account

with

the

broker

lending

the

security

sold

short.

While

the

short

sale

is

outstanding,

the

broker

retains

the

proceeds

of

the

short

sale

to

the

extent

necessary

to

meet

margin

requirements

until

the

short

position

is

closed

out.

A

deposit

must

also

be

maintained

with

the

Fund's

custodian/counterparty

broker

consisting

of

cash

and/or

securities

having

a

value

equal

to

a

specified

percentage

of

the

value

of

the

securities

sold

short.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral.

The

Fund

is

obligated

to

pay

fees

for

borrowing

the

securities

sold

short

and

is

required

to

pay

the

counterparty

any

dividends

and/or

interest

due

on

securities

sold

short.

Such

dividends

and/or

interest

and

any

security

borrowing

fees

are

recorded

as

an

expense

to

the

Fund.

At December

31,

2025, the

Funds

had

no

securities

sold

short.

e. #### Securities

#### Lending
Certain

or

all

Funds

participate

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Funds. The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the Statements of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

Securities

on

loan

outstanding

at

period

end,

if

any,

are

listed

in

the

Funds'

Schedules

of

Investments.

f. #### Senior

#### Floating

#### Rate

#### Interests
Certain

or

all

Funds

invest

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

Secured

Overnight

Financing

Rate

(SOFR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the

Funds

invest

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

g. #### 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

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

d. #### Securities

#### Sold

#### Short
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

EU

reclaims

received

by

the

Funds,

if

any,

reduce

the

amount

of

foreign

taxes

Fund

shareholders

can

use

as

tax

deductions

or credits

on

their income

tax

returns.

In

the

event

that

EU

reclaims

received

by

the

Funds during a

fiscal

year

exceed

foreign

withholding

taxes

paid

by

the

Funds,

and

the Funds

previously

passed through

to

its

shareholders

foreign

taxes

incurred

by

the

Funds

to

be

used

as

a

credit

or

deduction

on

a

shareholder's

income

tax

return,

the

Funds will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the Funds'

shareholders.

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

December

31,

2025, 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).

The

Funds'

federal

and

state

income

and

federal

excise

tax

returns

for

the

prior

three

fiscal

years

are

subject

to

examination

by

the

Internal

Revenue

Service

and

state

departments

of

revenue.

h. #### Security

#### Transactions,

#### Investment

#### Income,

#### Expenses

#### and

#### Distributions
Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

(including

interest

income

from

payment-in-kind

securities,

if

any)

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income.

Certain

or

all

Funds

may

receive

other

income

from

investments

in

senior

secured

corporate

loans

or

unfunded

commitments,

including

amendment

fees,

consent

fees

or

commitment

fees.

These

fees

are

recorded

as

income

when

received

by

the

Funds. Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan. Dividend

income

and

dividends

declared

on

securities

sold

short

are

recorded

on

the

ex-

dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

i. #### 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.

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

g. #### Income

#### and

#### Deferred

#### Taxes
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

j. #### 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.

2. #### Shares

#### of

#### Beneficial

#### Interest
At

December

31,

2025,

there

were

an

unlimited

number

of

shares

authorized

(without

par value).

Transactions

in

the

Funds'

shares

were

as

follows:

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Shares

#### Amount

#### Shares

#### Amount
Class

Z

#### Class

#### Z

#### Shares:
Year

ended

December

31,

2025

Shares

sold

...................................

3,871,395

$68,827,168

4,810,729

$153,299,377

Shares

issued

in

reinvestment

of

distributions

..........

7,597,472

141,625,485

9,430,957

304,689,712

Shares

redeemed

...............................

(14,613,346)

(257,235,283)

(15,008,176)

(477,158,191)

Net

increase

(decrease)

..........................

(3,144,479)

$(46,782,630)

(766,490)

$(19,169,102)

Year

ended

December

31,

2024

Shares

sold

...................................

4,628,851

$76,350,038

4,337,312

$138,009,892

Shares

issued

in

reinvestment

of

distributions

..........

7,057,453

111,717,085

10,255,124

296,159,674

Shares

issued

on

reorganization

....................

—

—

3,663,438

115,654,746

Shares

redeemed

...............................

(17,941,351)

(296,875,453)

(14,425,499)

(455,737,283)

Net

increase

(decrease)

..........................

(6,255,047)

$(108,808,330)

3,830,375

$94,087,029

Class

A

#### Class

#### A

#### Shares:
Year

ended

December

31,

2025

Shares

sold

a

...................................

2,027,080

$35,370,767

7,895,565

$243,141,929

Shares

issued

in

reinvestment

of

distributions

..........

2,993,939

54,938,770

16,860,915

525,217,349

Shares

redeemed

...............................

(7,265,828)

(126,329,945)

(28,575,455)

(879,532,284)

Net

increase

(decrease)

..........................

(2,244,809)

$(36,020,408)

(3,818,975)

$(111,173,006)

Year

ended

December

31,

2024

Shares

sold

a

...................................

1,900,087

$30,960,683

7,388,762

$227,146,545

Shares

issued

in

reinvestment

of

distributions

..........

2,799,453

43,699,271

18,423,846

514,969,432

Shares

issued

on

reorganization

....................

—

—

7,630,056

233,632,313

Shares

redeemed

...............................

(8,087,183)

(132,040,061)

(29,627,687)

(910,447,512)

Net

increase

(decrease)

..........................

(3,387,643)

$(57,380,107)

3,814,977

$65,300,778

Class

C

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Shares

#### Amount

#### Shares

#### Amount

#### Class

#### C

#### Shares:
Year

ended

December

31,

2025

Shares

sold

...................................

116,050

$2,010,596

446,428

$13,870,739

Shares

issued

in

reinvestment

of

distributions

..........

41,725

775,321

338,427

10,667,832

Shares

redeemed

a

..............................

(338,278)

(5,849,569)

(1,928,759)

(59,472,511)

Net

increase

(decrease)

..........................

(180,503)

$(3,063,652)

(1,143,904)

$(34,933,940)

Year

ended

December

31,

2024

Shares

sold

...................................

114,716

$1,895,660

450,184

$13,933,203

Shares

issued

in

reinvestment

of

distributions

..........

44,557

704,080

469,670

13,283,045

Shares

issued

on

reorganization

....................

—

—

363,201

11,182,954

Shares

redeemed

a

..............................

(339,314)

(5,618,350)

(2,211,808)

(68,431,349)

Net

increase

(decrease)

..........................

(180,041)

$(3,018,610)

(928,753)

$(30,032,147)

Class

R

#### Class

#### R

#### Shares:
Year

ended

December

31,

2025

Shares

sold

...................................

7,285

$121,720

315,581

$9,587,716

Shares

issued

in

reinvestment

of

distributions

..........

5,019

90,287

348,233

10,608,553

Shares

redeemed

...............................

(7,845)

(136,740)

(1,048,110)

(31,588,594)

Net

increase

(decrease)

..........................

4,459

$75,267

(384,296)

$(11,392,325)

Year

ended

December

31,

2024

Shares

sold

...................................

9,994

$162,148

332,581

$10,007,373

Shares

issued

in

reinvestment

of

distributions

..........

4,162

63,800

408,162

11,184,219

Shares

redeemed

...............................

(27,633)

(444,910)

(774,085)

(23,349,765)

Net

increase

(decrease)

..........................

(13,477)

$(218,962)

(33,342)

$(2,158,173)

Class

R6

#### Class

#### R6

#### Shares:
Year

ended

December

31,

2025

Shares

sold

...................................

2,626,811

$45,871,697

1,506,919

$48,010,228

Shares

issued

in

reinvestment

of

distributions

..........

356,991

6,647,781

1,466,747

47,347,095

Shares

redeemed

...............................

(2,131,651)

(37,290,268)

(4,272,419)

(135,677,451)

Net

increase

(decrease)

..........................

852,151

$15,229,210

(1,298,753)

$(40,320,128)

Year

ended

December

31,

2024

Shares

sold

...................................

1,692,575

$27,752,382

1,806,632

$57,329,779

Shares

issued

in

reinvestment

of

distributions

..........

266,972

4,223,430

1,706,770

49,236,491

Shares

issued

on

reorganization

....................

—

—

86,927

2,743,420

Shares

redeemed

...............................

(3,377,197)

(55,381,420)

(3,611,060)

(114,645,421)

Net

increase

(decrease)

..........................

(1,417,650)

$(23,405,608)

(10,731)

$(5,335,731)

2. #### Shares

#### of

#### Beneficial

#### Interest
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Shares

#### Amount

#### Shares

#### Amount
Class

Z

#### Class

#### Z

#### Shares:
Year

ended

December

31,

2025

Shares

sold

...................................

8,323,847

$246,712,777

6,019,152

$92,309,146

Shares

issued

in

reinvestment

of

distributions

..........

687,113

22,263,912

4,954,082

79,273,003

Shares

redeemed

...............................

(4,279,183)

(127,252,550)

(19,623,886)

(301,414,910)

Net

increase

(decrease)

..........................

4,731,777

$141,724,139

(8,650,652)

$(129,832,761)

Year

ended

December

31,

2024

Shares

sold

...................................

2,088,669

$52,373,724

6,788,296

$98,003,437

Shares

issued

in

reinvestment

of

distributions

..........

526,616

13,114,755

6,408,210

90,616,957

Shares

redeemed

...............................

(3,367,974)

(84,302,652)

(22,911,380)

(331,121,813)

Net

increase

(decrease)

..........................

(752,689)

$(18,814,173)

(9,714,874)

$(142,501,419)

Class

A

#### Class

#### A

#### Shares:
Year

ended

December

31,

2025

Shares

sold

a

...................................

2,470,678

$70,849,024

1,697,403

$25,393,728

Shares

issued

in

reinvestment

of

distributions

..........

340,206

10,632,418

1,395,402

21,895,904

Shares

redeemed

...............................

(2,008,306)

(56,418,468)

(6,211,525)

(93,325,795)

Net

increase

(decrease)

..........................

802,578

$25,062,974

(3,118,720)

$(46,036,163)

Year

ended

December

31,

2024

Shares

sold

a

...................................

1,431,038

$35,354,870

1,881,427

$26,710,493

Shares

issued

in

reinvestment

of

distributions

..........

305,197

7,368,785

1,844,874

25,608,731

Shares

redeemed

...............................

(2,225,027)

(54,100,502)

(7,694,426)

(109,203,487)

Net

increase

(decrease)

..........................

(488,792)

$(11,376,847)

(3,968,125)

$(56,884,263)

Class

C

#### Class

#### C

#### Shares:
Year

ended

December

31,

2025

Shares

sold

...................................

100,480

$2,910,416

147,512

$2,202,836

Shares

issued

in

reinvestment

of

distributions

..........

5,801

185,013

40,742

638,865

Shares

redeemed

a

..............................

(111,280)

(3,205,108)

(536,228)

(7,942,413)

Net

increase

(decrease)

..........................

(4,999)

$(109,679)

(347,974)

$(5,100,712)

Year

ended

December

31,

2024

Shares

sold

...................................

34,967

$867,483

158,618

$2,224,386

Shares

issued

in

reinvestment

of

distributions

..........

4,753

119,622

64,257

891,416

Shares

redeemed

a

..............................

(146,693)

(3,600,549)

(660,672)

(9,298,064)

Net

increase

(decrease)

..........................

(106,973)

$(2,613,444)

(437,797)

$(6,182,262)

Class

R

2. #### Shares

#### of

#### Beneficial

#### Interest
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Shares

#### Amount

#### Shares

#### Amount

#### Class

#### R

#### Shares:
Year

ended

December

31,

2025

Shares

sold

...................................

190,656

$5,399,318

187,864

$2,691,633

Shares

issued

in

reinvestment

of

distributions

..........

6,114

185,470

8,726

134,127

Shares

redeemed

...............................

(44,159)

(1,246,977)

(161,223)

(2,337,231)

Net

increase

(decrease)

..........................

152,611

$4,337,811

35,367

$488,529

Year

ended

December

31,

2024

Shares

sold

...................................

48,833

$1,169,548

28,479

$392,253

Shares

issued

in

reinvestment

of

distributions

..........

1,923

45,028

9,025

122,847

Shares

redeemed

...............................

(10,112)

(240,165)

(47,319)

(652,785)

Net

increase

(decrease)

..........................

40,644

$974,411

(9,815)

$(137,685)

Class

R6

#### Class

#### R6

#### Shares:
Year

ended

December

31,

2025

Shares

sold

...................................

680,580

$20,019,394

229,101

$3,561,258

Shares

issued

in

reinvestment

of

distributions

..........

32,609

1,056,766

77,211

1,233,956

Shares

redeemed

...............................

(310,356)

(9,172,159)

(465,303)

(7,132,212)

Net

increase

(decrease)

..........................

402,833

$11,904,001

(158,991)

$(2,336,998)

Year

ended

December

31,

2024

Shares

sold

...................................

653,798

$16,756,063

256,452

$3,690,411

Shares

issued

in

reinvestment

of

distributions

..........

23,414

582,147

101,554

1,434,042

Shares

redeemed

...............................

(150,088)

(3,794,485)

(557,444)

(8,052,254)

Net

increase

(decrease)

..........................

527,124

$13,543,725

(199,438)

$(2,927,801)

#### Franklin

#### Mutual

#### Shares

#### Fund

#### Shares

#### Amount
Class

Z

#### Class

#### Z

#### Shares:
Year

ended

December

31,

2025

Shares

sold

..................................................................

4,346,590

$112,222,047

Shares

issued

in

reinvestment

of

distributions

.........................................

9,893,563

258,636,360

Shares

redeemed

..............................................................

(18,592,387)

(481,632,282)

Net

increase

(decrease)

.........................................................

(4,352,234)

$(110,773,875)

Year

ended

December

31,

2024

Shares

sold

..................................................................

4,161,880

$109,730,682

Shares

issued

in

reinvestment

of

distributions

.........................................

12,679,548

317,035,751

Shares

redeemed

..............................................................

(17,307,832)

(453,476,689)

Net

increase

(decrease)

.........................................................

(466,404)

$(26,710,256)

Class

A

2. #### Shares

#### of

#### Beneficial

#### Interest
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### Mutual

#### Shares

#### Fund

#### Shares

#### Amount

#### Class

#### A

#### Shares:
Year

ended

December

31,

2025

Shares

sold

a

..................................................................

4,263,484

$108,370,722

Shares

issued

in

reinvestment

of

distributions

.........................................

7,188,804

184,507,727

Shares

redeemed

..............................................................

(17,390,477)

(442,415,965)

Net

increase

(decrease)

.........................................................

(5,938,189)

$(149,537,516)

Year

ended

December

31,

2024

Shares

sold

a

..................................................................

4,534,162

$116,895,815

Shares

issued

in

reinvestment

of

distributions

.........................................

9,443,553

232,264,104

Shares

redeemed

..............................................................

(17,166,830)

(443,192,851)

Net

increase

(decrease)

.........................................................

(3,189,115)

$(94,032,932)

Class

C

#### Class

#### C

#### Shares:
Year

ended

December

31,

2025

Shares

sold

..................................................................

156,376

$4,025,185

Shares

issued

in

reinvestment

of

distributions

.........................................

76,147

1,980,327

Shares

redeemed

a

.............................................................

(538,242)

(13,794,158)

Net

increase

(decrease)

.........................................................

(305,719)

$(7,788,646)

Year

ended

December

31,

2024

Shares

sold

..................................................................

155,803

$4,077,258

Shares

issued

in

reinvestment

of

distributions

.........................................

120,828

3,014,208

Shares

redeemed

a

.............................................................

(704,994)

(18,319,217)

Net

increase

(decrease)

.........................................................

(428,363)

$(11,227,751)

Class

R

#### Class

#### R

#### Shares:
Year

ended

December

31,

2025

Shares

sold

..................................................................

112,279

$2,846,763

Shares

issued

in

reinvestment

of

distributions

.........................................

97,051

2,478,423

Shares

redeemed

..............................................................

(314,592)

(8,000,243)

Net

increase

(decrease)

.........................................................

(105,262)

$(2,675,057)

Year

ended

December

31,

2024

Shares

sold

..................................................................

131,767

$3,389,485

Shares

issued

in

reinvestment

of

distributions

.........................................

130,108

3,187,381

Shares

redeemed

..............................................................

(359,303)

(9,236,766)

Net

increase

(decrease)

.........................................................

(97,428)

$(2,659,900)

Class

R6

2. #### Shares

#### of

#### Beneficial

#### Interest
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

3. #### Transactions

#### with

#### Affiliates
Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and trustees

of

the Trust are

also

officers

and/or

directors

of

the

following

subsidiaries:

a. #### Management

#### Fees
Franklin

Mutual

Beacon

Fund

and

Franklin

Mutual

Quest

Fund

pay

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to Franklin

Mutual based

on

the

average

daily

net

assets

of

each

of

the

Funds

as

follows:

#### Franklin

#### Mutual

#### Shares

#### Fund

#### Shares

#### Amount

#### Class

#### R6

#### Shares:
Year

ended

December

31,

2025

Shares

sold

..................................................................

434,733

$11,209,499

Shares

issued

in

reinvestment

of

distributions

.........................................

917,199

23,951,464

Shares

redeemed

..............................................................

(1,875,650)

(48,508,298)

Net

increase

(decrease)

.........................................................

(523,718)

$(13,347,335)

Year

ended

December

31,

2024

Shares

sold

..................................................................

1,344,500

$33,682,019

Shares

issued

in

reinvestment

of

distributions

.........................................

1,183,900

29,577,836

Shares

redeemed

..............................................................

(1,625,868)

(42,770,069)

Net

increase

(decrease)

.........................................................

902,532

$20,489,786

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A. #### Subsidiary

#### Affiliation
Franklin

Mutual

Advisers,

LLC

(Franklin

Mutual)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

#### Annualized

#### Fee

#### Rate

#### Net

#### Assets
0.675%

Up

to

and

including

$5

billion

0.645%

Over

$5

billion,

up

to

and

including

$7

billion

0.625%

Over

$7

billion,

up

to

and

including

$10

billion

0.615%

In

excess

of

$10

billion

2. #### Shares

#### of

#### Beneficial

#### Interest
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

Franklin

Mutual

Global

Discovery

Fund pays

an

investment

management fee,

calculated

daily

and

paid

monthly,

to Franklin

Mutual based

on the

average

daily

net

assets

of

the

Fund

as

follows:

Franklin

Mutual

International

Value

Fund pays

an

investment

management fee,

calculated

daily

and

paid

monthly,

to Franklin

Mutual based

on the

average

daily

net

assets

of

the

Fund

as

follows:

Franklin

Mutual

Shares

Fund pays

an

investment

management fee,

calculated

daily

and

paid

monthly,

to Franklin

Mutual based

on the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

December

31,

2025,

each

Fund's

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

as

follows:

#### Annualized

#### Fee

#### Rate

#### Net

#### Assets
0.845%

Up

to

and

including

$7

billion

0.825%

Over

$7

billion,

up

to

and

including

$10

billion

0.805%

Over

$10

billion,

up

to

and

including

$13

billion

0.785%

Over

$13

billion,

up

to

and

including

$16

billion

0.765%

Over

$16

billion,

up

to

and

including

$19

billion

0.745%

Over

$19

billion,

up

to

and

including

$22

billion

0.725%

Over

$22

billion,

up

to

and

including

$25

billion

0.705%

Over

$25

billion,

up

to

and

including

$28

billion

0.685%

In

excess

of

$28

billion

#### Annualized

#### Fee

#### Rate

#### Net

#### Assets
0.800%

Up

to

and

including

$1

billion

0.770%

Over

$1

billion,

up

to

and

including

$2

billion

0.750%

Over

$2

billion,

up

to

and

including

$5

billion

0.730%

In

excess

of

$5

billion

#### Annualized

#### Fee

#### Rate

#### Net

#### Assets
0.675%

Up

to

and

including

$5

billion

0.645%

Over

$5

billion,

up

to

and

including

$10

billion

0.625%

Over

$10

billion,

up

to

and

including

$15

billion

0.595%

Over

$15

billion,

up

to

and

including

$20

billion

0.585%

Over

$20

billion,

up

to

and

including

$25

billion

0.565%

Over

$25

billion,

up

to

and

including

$30

billion

0.555%

Over

$30

billion,

up

to

and

including

$35

billion

0.545%

In

excess

of

$35

billion

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Gross

effective

investment

management

fee

rate

...................

0.675%

0.840%

0.797%

3. #### Transactions

#### with

#### Affiliates
(continued)

a. #### Management

#### Fees
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

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

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Funds.

c. #### Distribution

#### Fees
The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class Z

and Class

R6 shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds'

Class

A

reimbursement

distribution

plans,

the

Funds

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

through

January

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

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

year:

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Gross

effective

investment

management

fee

rate

....................................

0.675%

0.666%

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Class

A

...............................

0.35%

0.35%

0.35%

Class

C

...............................

1.00%

1.00%

1.00%

Class

R

...............................

0.50%

0.50%

0.50%

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Class

A

...............................

0.35%

0.35%

Class

C

...............................

1.00%

1.00%

Class

R

...............................

0.50%

0.50%

3. #### Transactions

#### with

#### Affiliates
(continued)

a. #### Management

#### Fees
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

e. #### Transfer

#### Agent

#### Fees
Each

class

of

shares

pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations. The

fees

are based

on

a

fixed

margin

earned

by

Investor

Services

and

are allocated

to

the Funds

based

upon

relative

assets

and

relative

transactions. 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

paid

to

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

allocated

specifically

to

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

year

ended

December

31,

2025,

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,

if

applicable, paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

December

31,

2025,

investments

in

affiliated

management

investment

companies

were

as

follows:

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/

dealers

..................................................

$21,916

$161,346

$37,427

CDSC

retained

............................................

$4,151

$15,290

$3,469

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

.............

$13,716

$59,340

CDSC

retained

.............................................................

$(3,050)

$3,267

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Transfer

agent

fees

.........................................

$712,562

$2,621,511

$299,484

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Transfer

agent

fees

..........................................................

$635,913

$1,699,142

3. #### Transactions

#### with

#### Affiliates
(continued)

d. #### Sales

#### Charges/Underwriting

#### Agreements
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### &nbsp;&nbsp;&nbsp;&nbsp;aa

#### Value

#### at

#### Beginning

#### of

#### Year

#### Purchases

#### Sales

#### Realized

#### Gain
(Loss)

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### Value

#### at

#### End

#### of

#### Year

#### Number

#### of

#### Shares

#### Held

#### at

#### End

#### of

#### Year

#### Investment

#### Income

#### a&nbsp;&nbsp;&nbsp;&nbsp;

#### a

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Non-Controlled

#### Affiliates
Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

............

$—

$303,521,175

$(269,294,062)

$—

$—

$34,227,113

34,227,113

$837,684

#### Total

#### Affiliated

#### Securities

#### ...
$—

$303,521,175

$(269,294,062)

$—

$—

$34,227,113

$837,684

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Non-Controlled

#### Affiliates
Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

............

$—

$1,212,227,286

$(1,048,001,776)

$—

$—

$164,225,510

164,225,510

$4,660,077

#### Total

#### Affiliated

#### Securities

#### ...
$—

$1,212,227,286

$(1,048,001,776)

$—

$—

$164,225,510

$4,660,077

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Non-Controlled

#### Affiliates
Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

............

$—

$187,423,194

$(164,885,712)

$—

$—

$22,537,482

22,537,482

$705,191

#### Total

#### Affiliated

#### Securities

#### ...
$—

$187,423,194

$(164,885,712)

$—

$—

$22,537,482

$705,191

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Non-Controlled

#### Affiliates
Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

............

$—

$435,913,669

$(380,713,329)

$—

$—

$55,200,340

55,200,340

$2,249,598

#### Total

#### Affiliated

#### Securities

#### ...
$—

$435,913,669

$(380,713,329)

$—

$—

$55,200,340

$2,249,598

#### Franklin

#### Mutual

#### Shares

#### Fund

#### Non-Controlled

#### Affiliates
Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

............

$—

$1,221,499,709

$(1,204,381,974)

$—

$—

$17,117,735

17,117,735

$4,201,254

#### Total

#### Affiliated

#### Securities

#### ...
$—

$1,221,499,709

$(1,204,381,974)

$—

$—

$17,117,735

$4,201,254

3. #### Transactions

#### with

#### Affiliates
(continued)

f. #### Investments

#### in

#### Affiliated

#### Management

#### Investment

#### Companies
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

g. #### Waiver

#### and

#### Expense

#### Reimbursements
Franklin

Mutual

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Franklin

Mutual

Global

Discovery

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses,

expenses

related

to

securities

sold

short,

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

1.00%

based

on

the

average

net

assets

of

each

class

until

April

30,

2026. Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

Franklin

Mutual

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Franklin

Mutual

International

Value

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses,

expenses

related

to

securities

sold

short,

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

0.95%

based

on

the

average

net

assets

of

each

class

until

April

30,

2026. Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

Transfer

agent

fees

on

Class

R6

shares

of

Franklin

Mutual

Beacon

Fund,

Franklin

Mutual

International

Value

Fund

and

Franklin

Mutual

Quest

Fund

have

been

capped

so

that

transfer

agent

fees

for

that

class

do

not

exceed

0.02%

based

on

the

average

net

assets

of

the

class

until

April

30,

2026. Transfer

agent

fees

on

Class

R6

shares

of

Franklin

Mutual

Global

Discovery

Fund

and

Franklin

Mutual

Shares

Fund

have

been

capped

so

that

transfer

agent

fees

for

that

class

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2026. 4. #### Independent

#### Trustees'

#### Retirement

#### Plan
On

January

1,

1993,

the

Trust

adopted

an

Independent

Trustees'

Retirement

Plan

(Plan).

The

Plan

is

an

unfunded

defined

benefit

plan

that

provides

benefit

payments

to

Trustees

whose

length

of

service

and

retirement

age

meets

the

eligibility

requirements

of

the

Plan.

Benefits

under

the

Plan

are

based

on

years

of

service

and

fees

paid

to

each

trustee

at

the

time

of

retirement.

Effective

in

December

1996,

the

Plan

was

closed

to

new

participants.

During

the

year

ended

December

31,

2025,

the

Fund's

projected

benefit

obligation

and

benefit

payments

under

the

Plan

were

as

follows:

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
a

Projected

benefit

obligation

at

December

31,

2025

.................

$179,140

$793,959

$106,151

b

Increase

(decrease)

in

projected

benefit

obligation

.................

$19,687

$54,358

$7,009

Benefit

payments

made

to

retired

trustees

........................

$(17,332)

$(48,508)

$(5,345)

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
a

Projected

benefit

obligation

at

December

31,

2025

.................

$229,109

$716,849

b

Increase

(decrease)

in

projected

benefit

obligation

.................

$15,527

$40,118

Benefit

payments

made

to

retired

trustees

........................

$(14,001)

$(37,298)

a

The

projected

benefit

obligation

is

included

in

trustees'

fees

and

expenses

in

the

Statements

of

Assets

and

Liabilities.

b

The

increase

(decrease)

in

projected

benefit

obligation

is

reflected

in

trustees'

fees

and

expenses

in

the

Statements

of

Operations.

3. #### Transactions

#### with

#### Affiliates
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

5. #### Income

#### Taxes
For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2025,

the

capital

loss

carryforwards

were

as

follows:

During

the

year

ended December

31,

2025,

the

utilized

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2025

and

2024,

was

as

follows:

At

December

31,

2025,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains for

income

tax

purposes

were

as

follows:

#### Franklin

#### Mutual

#### Quest

#### Fund

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$

49,482,782

Long

term

................................................................................

376,186,333

Total

capital

loss

carryforwards

...............................................................

$425,669,115

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Franklin

#### Mutual

#### Quest

#### Fund
Capital

loss

utilized

carryforwards

...............................................

$78,289,813

$82,944,529

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### 2025

#### 2024

#### 2025

#### 2024
Distributions

paid

from:

Ordinary

income

........................

$72,087,607

$78,560,946

$220,107,564

$295,878,518

Long

term

capital

gain

....................

155,299,790

100,432,340

719,303,808

628,317,520

$227,387,397

$178,993,286

$939,411,372

$924,196,038

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Franklin

#### Mutual

#### Quest

#### Fund

#### 2025

#### 2024

#### 2025

#### 2024
Distributions

paid

from:

Ordinary

income

........................

$37,366,274

$23,117,544

$108,351,963

$124,559,408

#### Franklin

#### Mutual

#### Shares

#### Fund

#### 2025

#### 2024
Distributions

paid

from:

Ordinary

income

..........................................................

$156,005,018

$192,055,952

Long

term

capital

gain

......................................................

352,601,255

440,064,887

$508,606,273

$632,120,839

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

passive

foreign

investment

company

shares,

bond

discounts

and

premiums,

tax

straddles

and

corporate

actions.

The

Funds,

except

for

Franklin

Mutual

Quest

Fund

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

net

investment

income

and

realized

capital

gains.

6. #### Investment

#### Transactions
Purchases

and

sales

of investments

(excluding

short

term

securities

and

securities

sold

short) for

the

year

ended

December

31,

2025,

were

as

follows:

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
a

a

a

a

Cost

of

investments

........................................

$2,389,573,287

$7,059,000,496

$988,951,716

Unrealized

appreciation

......................................

$1,128,638,604

$2,632,981,970

$297,396,549

Unrealized

depreciation

......................................

(12,896,976)

(282,213,913)

(44,821,150)

Net

unrealized

appreciation

(depreciation)

........................

$1,115,741,628

$2,350,768,057

$252,575,399

Distributable

earnings:

Undistributed

ordinary

income

.................................

$5,838,285

$43,817,449

$19,699,464

Undistributed

long

term

capital

gains

............................

86,374,120

198,628,601

23,326,837

Total

distributable

earnings

...................................

$92,212,405

$242,446,050

$43,026,301

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
a

a

a

Cost

of

investments

.........................................................

$2,294,604,902

$5,285,711,288

Unrealized

appreciation

.......................................................

$516,425,037

$1,782,548,108

Unrealized

depreciation

.......................................................

(137,734,152)

(110,521,225)

Net

unrealized

appreciation

(depreciation)

.........................................

$378,690,885

$1,672,026,883

Distributable

earnings:

Undistributed

ordinary

income

..................................................

$1,076,760

$10,568,235

Undistributed

long

term

capital

gains

.............................................

—

182,656,044

Total

distributable

earnings

....................................................

$1,076,760

$193,224,279

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Purchases

...............................................

$1,517,781,939

$3,784,814,746

$659,092,770

Sales

...................................................

$1,777,519,391

$4,911,950,386

$511,980,163

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Purchases

................................................................

$1,275,337,920

$3,541,636,824

Sales

....................................................................

$1,506,747,250

$4,193,266,866

5. #### Income

#### Taxes
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

7. #### Credit

#### Risk

#### and

#### Defaulted

#### Securities
At

December

31,

2025, Franklin

Mutual

Quest

Fund had 14.6% of

its

portfolio

invested

in

high

yield

securities,

senior

secured

floating

rate

loans,

or

other

securities rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

The

Funds

may

purchase

the

pre-default

or

defaulted

debt

of

distressed

companies.

Distressed

companies

are

financially

troubled

and

could

be

or

are

already

involved

in

financial

restructuring

or

bankruptcy.

Risks

associated

with

purchasing

these

securities

include

the

possibility

that

the

bankruptcy

or

other

restructuring

process

takes

longer

than

expected,

or

that

distributions

in

restructuring

are

less

than

anticipated,

either

or

both

of

which

may

result

in

unfavorable

consequences

to

the

Funds.

If

it

becomes

probable

that

the

income

on

debt

securities,

including

those

of

distressed

companies,

will

not

be

collected,

the

Funds

discontinue

accruing

income

and

recognize

an

adjustment

for

uncollectible

interest.

At

December

31,

2025,

the

aggregate

long

value

of

distressed

company

securities

for

which

interest

recognition

has

been

discontinued

for

Franklin

Mutual

Quest

Fund

was

$2,352,240,

representing

less

than

0.1%

of

the

Fund's

net

assets.

For

information

as

to

specific

securities,

see

the

accompanying

Schedule

of

Investments.

At

December

31,

2025,

Franklin

Mutual

Beacon

Fund,

Franklin

Mutual

Global

Discovery

Fund,

Franklin

Mutual

International

Value

Fund

and

Franklin

Mutual

Shares

Fund

did

not

hold

any

distressed

company

securities

for

which

interest

recognition

has

been

discontinued.

8. #### Concentration

#### of

#### Risk
Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Certain

investments

in

Chinese

companies

are

made

through

a

special

structure

known

as

a

VIE.

In

a

VIE

structure,

foreign

investors,

such

as Franklin

Mutual

Global

Discovery

Fund

and

Franklin

Mutual

International

Value

Fund,

will

only

own

stock

in

a

shell

company

rather

than

directly

in

the

VIE,

which

must

be

owned

by

Chinese

nationals

(and/or

Chinese

companies)

to

obtain

the

licenses

and/or

assets

required

to

operate

in

a

restricted

or

prohibited

sector

in

China.

The

value

of

the

shell

company

is

derived

from

its

ability

to

consolidate

the

VIE

into

its

financials

pursuant

to

contractual

arrangements

that

allow

the

shell

company

to

exert

a

degree

of

control

over,

and

obtain

economic

benefits

arising

from,

the

VIE

without

formal

legal

ownership.

While

VIEs

are

a

longstanding

industry

practice

and

are

well

known

by

Chinese

officials

and

regulators,

the

structure

historically

has

not

been

formally

recognized

under

Chinese

law

and

it

is

uncertain

whether

Chinese

officials

or

regulators

will

withdraw

their

implicit

acceptance

of

the

structure.

It

is

also

uncertain

whether

the

contractual

arrangements,

which

may

be

subject

to

conflicts

of

interest

between

the

legal

owners

of

the

VIE

and

foreign

investors,

would

be

enforced

by

Chinese

courts

or

arbitration

bodies.

Prohibitions

of

these

structures

by

the

Chinese

government,

or

the

inability

to

enforce

such

contracts,

from

which

the

shell

company

derives

its

value,

would

likely

cause

the

VIE-structured

holding(s)

to

suffer

significant,

detrimental,

and

possibly

permanent

losses,

and

in

turn,

adversely

affect

the

Funds'

returns

and

net

asset

value.

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

9. #### Restricted

#### Securities
Certain

or

all

Funds

invest

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

December

31,

2025,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

10. #### Other

#### Derivative

#### Information
For

the

year

ended

December

31,

2025,

the

effect

of

derivative

contracts

in

the

Statements

of

Operations

was

as

follows:

#### Shares

#### /

#### Warrants

#### Issuer

#### Acquisition

#### Date

#### Cost

#### Value

#### Franklin

#### Mutual

#### Quest

#### Fund
106,532

Inclusive

Language

Services

LLC,

Membership

Interests,

B

...............................

4/30/14

$

—

$

24,777,471

1,714,983

Uniti

Group,

Inc..

............................

8/04/25

10,667,194

11,722,927

10,941

Uniti

Group,

Inc.

.............................

8/04/25

9,523,836

10,791,029

334,087

Uniti

Group,

Inc.,

8/01/35

......................

8/04/25

1,603,618

2,018,557

#### Total

#### Restricted

#### Securities
(Value

is

1.8%

of

Net

Assets)

#### ...............
$21,794,648

$49,309,984

#### Shares

#### /

#### Warrants

#### Issuer

#### Acquisition

#### Date

#### Cost

#### Value

#### Franklin

#### Mutual

#### Shares

#### Fund
2,243,497

Uniti

Group,

Inc.

.............................

8/04/25

$

13,954,551

$

15,335,635

14,312

Uniti

Group,

Inc..

............................

8/04/25

12,458,840

14,116,549

437,045

Uniti

Group,

Inc.,

8/01/35

......................

8/04/25

2,097,816

2,640,630

#### Total

#### Restricted

#### Securities
(Value

is

0.5%

of

Net

Assets)

#### ...............
$28,511,207

$32,092,814

#### Derivative

#### Contracts

#### Not

#### Accounted

#### for

#### as

#### Hedging

#### Instruments

#### Statement

#### of

#### Operations

#### Location

#### Net

#### Realized

#### Gain
(Loss)

#### for

#### the

#### Year

#### Statement

#### of

#### Operations

#### Location

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### for

#### the

#### Year

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
Net

realized

gain

(loss)

from:

Net

change

in

unrealized

&nbsp;&nbsp;&nbsp;&nbsp;appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Futures

contracts

$(21,618,301)

Futures

contracts

$(5,581,208)

Forward

exchange

contracts

(24,249,441)

Forward

exchange

contracts

(21,974,694)

Total

.......................

$(45,867,742)

$(27,555,902)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

For

the

year

ended

December

31,

2025,

the

average

month

end

notional

amount

of

futures

contracts

and

options and

the

average

month

end

contract

value for

forward

exchange

contracts,

were

as

follows:

See

Note

1(c) regarding

derivative

financial

instruments.

11. #### 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

year

ended

December

31,

2025,

investments

in

"affiliated

companies"

were

as

follows:

#### Derivative

#### Contracts

#### Not

#### Accounted

#### for

#### as

#### Hedging

#### Instruments

#### Statement

#### of

#### Operations

#### Location

#### Net

#### Realized

#### Gain
(Loss)

#### for

#### the

#### Year

#### Statement

#### of

#### Operations

#### Location

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### for

#### the

#### Year

#### Franklin

#### Mutual

#### Quest

#### Fund
Net

realized

gain

(loss)

from:

Net

change

in

unrealized

&nbsp;&nbsp;&nbsp;&nbsp;appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Futures

contracts

$(923,589)

Futures

contracts

$(275,551)

Forward

exchange

contracts

(1,847,638)

Forward

exchange

contracts

(4,011,766)

Equity

contracts

..............

Written

options

577,637

Written

options

—

Total

.......................

$(2,193,590)

$(4,287,317)

#### Franklin

#### Mutual

#### Shares

#### Fund
Net

realized

gain

(loss)

from:

Net

change

in

unrealized

&nbsp;&nbsp;&nbsp;&nbsp;appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Futures

contracts

(1,174,492)

Futures

contracts

(454,302)

Forward

exchange

contracts

(11,079,299)

Forward

exchange

contracts

(1,281,598)

Total

.......................

$(12,253,791)

$(1,735,900)

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Futures

contracts

..........................................

$84,651,094

$4,201,846

$7,242,844

Forward

exchange

contracts

..................................

395,766,768

63,867,266

110,512,687

Options

..................................................

—

5,000

—

10. #### Other

#### Derivative

#### Information
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

12. #### 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

$2.995

billion

(Global

Credit

Facility)

which

matured

on

January

30,

2026. 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.

Effective

January

30,

2026,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

January

29,

2027,

for

a

total

of

$2.995

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

may,

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

year ended

December

31,

2025,

the

Funds

did

not

use

the

Global

Credit

Facility.

13. #### 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

–

quoted

prices

in

active

markets

for

identical

financial

instruments

#### Value

#### at

#### Beginning

#### of

#### Year

#### Purchases

#### Sales

#### Realized

#### Gain
(Loss)

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### Value

#### at

#### End

#### of

#### Year

#### Number

#### of

#### Shares/Principal

#### Amount\*

#### Held

#### at

#### End

#### of

#### Year

#### Investment

#### Income

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Non-Controlled

#### Affiliates
Dividends

Inclusive

Language

Services

LLC,

Membership

Interests,

B

$

55,505,900

$

—

$

—

$

—

$

(30,728,429)

$

24,777,471

106,532

$

—

Interest

Sorenson

Holdings

LLC,

First

Lien,

Term

Loan,

A,

PIK,

10%,

4/01/30

...

30,350,971

3,160,602

a

—

—

(268,895)

33,242,678

33,331,739

3,257,974

Sorenson

Holdings

LLC,

First

Lien,

Term

Loan,

B,

PIK,

8%,

4/01/30

....

101,849,438

8,878,254

a

—

—

(294,629)

110,433,063

127,468,696

7,975,779

#### Total

#### Affiliated

#### Securities
(Value

at

End

of

Year

is

6.2%

of

Net

Assets)

#### ..
$187,706,309

$12,038,856

$—

$—

$(31,291,953)

$168,453,212

$11,233,753

\*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

include

accretion,

amortization,

and/or

other

cost

basis

adjustments.

11. #### Holdings

#### of

#### 5%

#### Voting

#### Securities

#### of

#### Portfolio

#### Companies
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

Level

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2025,

in

valuing

the

Funds'

assets carried

at

fair

value,

is

as

follows:

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Assets:
Investments

in

Securities:

a

Common

Stocks

:

Automobiles

..........................

$

78,165,516

$

—

$

—

$

78,165,516

Banks

...............................

168,751,447

207,024,120

—

375,775,567

Beverages

...........................

—

81,516,591

—

81,516,591

Broadline

Retail

.......................

133,138,823

—

—

133,138,823

Building

Products

......................

140,125,343

—

—

140,125,343

Capital

Markets

........................

106,361,826

—

—

106,361,826

Electric

Utilities

........................

63,990,120

—

—

63,990,120

Entertainment

.........................

107,643,372

—

—

107,643,372

Food

Products

........................

—

118,244,910

—

118,244,910

Health

Care

Equipment

&

Supplies

.........

206,779,806

—

—

206,779,806

Household

Products

....................

117,580,100

72,571,060

—

190,151,160

Insurance

............................

295,775,785

—

—

295,775,785

Interactive

Media

&

Services

..............

167,295,524

—

—

167,295,524

Life

Sciences

Tools

&

Services

............

121,278,885

—

—

121,278,885

Machinery

............................

138,127,685

—

—

138,127,685

Metals

&

Mining

.......................

111,093,047

—

—

111,093,047

Oil,

Gas

&

Consumable

Fuels

.............

109,907,358

55,027,891

—

164,935,249

Pharmaceuticals

.......................

168,425,131

271,430,727

—

439,855,858

Retail

REITs

..........................

70,832,648

—

—

70,832,648

Semiconductors

&

Semiconductor

Equipment

.

58,480,088

—

—

58,480,088

Software

.............................

51,073,506

—

—

51,073,506

Specialty

Retail

........................

120,395,175

—

—

120,395,175

Trading

Companies

&

Distributors

..........

130,051,318

—

—

130,051,318

Companies

in

Liquidation

..................

—

—

—

b

—

Short

Term

Investments

...................

34,227,113

—

—

34,227,113

Total

Investments

in

Securities

...........

$2,699,499,616

$805,815,299

c

$—

$3,505,314,915

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Assets:
Investments

in

Securities:

a

Common

Stocks

:

Aerospace

&

Defense

...................

—

197,075,958

—

197,075,958

Automobile

Components

.................

—

99,731,403

—

99,731,403

Automobiles

..........................

—

265,485,062

—

265,485,062

Banks

...............................

497,559,833

378,729,755

—

876,289,588

Beverages

...........................

—

163,674,592

—

163,674,592

Broadline

Retail

.......................

—

141,511,751

—

141,511,751

Building

Products

......................

—

148,969,795

—

148,969,795

Capital

Markets

........................

149,432,308

166,458,240

—

315,890,548

Chemicals

...........................

143,515,210

170,577,248

—

314,092,458

Consumer

Finance

.....................

160,933,341

—

—

160,933,341

Containers

&

Packaging

.................

164,693,962

—

—

164,693,962

Diversified

Telecommunication

Services

.....

—

193,138,501

—

193,138,501

13. #### Fair

#### Value

#### Measurements
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund
(continued)

#### Assets:
(continued)

Investments

in

Securities:

a

(continued)

Common

Stocks:

(continued)

Electrical

Equipment

....................

$

—

$

123,952,123

$

—

$

123,952,123

Energy

Equipment

&

Services

.............

131,186,256

—

—

131,186,256

Entertainment

.........................

169,236,402

—

—

169,236,402

Financial

Services

......................

186,265,841

—

—

186,265,841

Food

Products

........................

152,305,687

132,339,117

—

284,644,804

Ground

Transportation

..................

145,592,808

—

—

145,592,808

Health

Care

Equipment

&

Supplies

.........

330,682,379

—

—

330,682,379

Health

Care

Providers

&

Services

..........

307,883,721

139,501,981

—

447,385,702

Household

Products

....................

—

173,693,378

—

173,693,378

Industrial

Conglomerates

................

—

104,292,401

—

104,292,401

Insurance

............................

—

179,349,642

—

179,349,642

Interactive

Media

&

Services

..............

403,857,881

165,170,362

—

569,028,243

IT

Services

...........................

—

186,907,546

—

186,907,546

Media

...............................

120,578,801

—

—

120,578,801

Metals

&

Mining

.......................

—

133,438,443

—

133,438,443

Multi-Utilities

..........................

—

115,736,487

—

115,736,487

Oil,

Gas

&

Consumable

Fuels

.............

135,273,567

315,108,722

—

450,382,289

Pharmaceuticals

.......................

415,097,795

405,847,106

—

820,944,901

Semiconductors

&

Semiconductor

Equipment

.

—

148,932,986

—

148,932,986

Software

.............................

164,127,111

—

—

164,127,111

Specialized

REITs

......................

143,087,970

—

—

143,087,970

Technology

Hardware,

Storage

&

Peripherals

.

—

165,775,727

—

165,775,727

Textiles,

Apparel

&

Luxury

Goods

..........

—

186,719,732

—

186,719,732

Tobacco

.............................

—

190,542,564

—

190,542,564

Trading

Companies

&

Distributors

..........

316,754,591

—

—

316,754,591

Corporate

Bonds

........................

—

44,849,083

—

44,849,083

Senior

Floating

Rate

Interests

...............

—

169,967,874

—

169,967,874

Companies

in

Liquidation

..................

—

—

—

b

—

Short

Term

Investments

...................

164,225,510

—

—

164,225,510

Total

Investments

in

Securities

...........

$4,402,290,974

$5,007,477,579

d

$—

$9,409,768,553

#### Franklin

#### Mutual

#### International

#### Value

#### Fund

#### Assets:
Investments

in

Securities:

a

Common

Stocks

:

Aerospace

&

Defense

...................

—

38,747,915

—

38,747,915

Automobile

Components

.................

—

17,971,319

—

17,971,319

Automobiles

..........................

—

51,523,683

—

51,523,683

Banks

...............................

—

227,397,495

—

227,397,495

Beverages

...........................

—

42,700,479

—

42,700,479

Broadline

Retail

.......................

—

22,569,703

—

22,569,703

Building

Products

......................

—

27,516,609

—

27,516,609

Capital

Markets

........................

—

64,132,887

—

64,132,887

Chemicals

...........................

—

24,062,592

—

24,062,592

Consumer

Staples

Distribution

&

Retail

......

—

23,512,222

—

23,512,222

Diversified

Telecommunication

Services

.....

18,889,575

45,183,192

—

64,072,767

Electrical

Equipment

....................

—

11,355,546

—

11,355,546

Energy

Equipment

&

Services

.............

22,175,619

—

—

22,175,619

Food

Products

........................

18,971,091

13,272,930

—

32,244,021

Health

Care

Equipment

&

Supplies

.........

—

18,744,922

—

18,744,922

Household

Durables

....................

—

12,298,059

—

12,298,059

Insurance

............................

—

84,356,748

—

84,356,748

Interactive

Media

&

Services

..............

—

22,586,161

—

22,586,161

IT

Services

...........................

—

22,040,080

—

22,040,080

13. #### Fair

#### Value

#### Measurements
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
(continued)

#### Assets:
(continued)

Investments

in

Securities:

a

(continued)

Common

Stocks:

(continued)

Machinery

............................

$

12,471,451

$

44,150,629

$

—

$

56,622,080

Metals

&

Mining

.......................

—

42,385,149

—

42,385,149

Multi-Utilities

..........................

—

14,679,065

—

14,679,065

Oil,

Gas

&

Consumable

Fuels

.............

—

54,117,829

—

54,117,829

Paper

&

Forest

Products

.................

—

22,114,019

—

22,114,019

Personal

Care

Products

.................

—

18,197,060

—

18,197,060

Pharmaceuticals

.......................

—

104,653,068

—

104,653,068

Semiconductors

&

Semiconductor

Equipment

.

11,526,754

—

—

11,526,754

Textiles,

Apparel

&

Luxury

Goods

..........

—

12,516,602

—

12,516,602

Tobacco

.............................

—

27,421,327

—

27,421,327

Trading

Companies

&

Distributors

..........

24,747,853

—

—

24,747,853

Short

Term

Investments

...................

22,537,482

—

—

22,537,482

Total

Investments

in

Securities

...........

$131,319,825

$1,110,207,290

e

$—

$1,241,527,115

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Assets:
Investments

in

Securities:

a

Common

Stocks

:

Aerospace

&

Defense

...................

—

33,185,969

—

33,185,969

Automobile

Components

.................

35,670,307

35,776,630

—

71,446,937

Automobiles

..........................

—

14,349,784

—

14,349,784

Banks

...............................

64,553,692

112,542,263

—

177,095,955

Beverages

...........................

—

35,169,648

—

35,169,648

Building

Products

......................

33,890,687

—

—

33,890,687

Capital

Markets

........................

—

13,601,718

—

13,601,718

Chemicals

...........................

24,826,878

—

—

24,826,878

Communications

Equipment

..............

40,780,067

—

24,777,471

65,557,538

Consumer

Staples

Distribution

&

Retail

......

37,059,559

—

—

37,059,559

Containers

&

Packaging

.................

22,733,623

—

—

22,733,623

Diversified

Telecommunication

Services

.....

24,072,080

34,441,003

11,722,927

70,236,010

Electric

Utilities

........................

100,053,950

—

—

100,053,950

Energy

Equipment

&

Services

.............

74,077,265

—

—

74,077,265

Entertainment

.........................

43,143,135

—

—

43,143,135

Financial

Services

......................

65,258,116

—

—

65,258,116

Food

Products

........................

—

69,596,573

—

69,596,573

Ground

Transportation

..................

19,172,958

—

—

19,172,958

Health

Care

Equipment

&

Supplies

.........

76,157,027

—

—

76,157,027

Health

Care

Providers

&

Services

..........

30,512,573

37,563,770

—

68,076,343

Household

Products

....................

35,758,367

34,910,872

—

70,669,239

Industrial

Conglomerates

................

—

28,803,917

—

28,803,917

Insurance

............................

165,177,894

87,566,299

—

252,744,193

Interactive

Media

&

Services

..............

112,643,135

—

—

112,643,135

Machinery

............................

57,242,700

—

—

57,242,700

Media

...............................

24,827,535

—

—

24,827,535

Metals

&

Mining

.......................

—

41,378,859

—

41,378,859

Oil,

Gas

&

Consumable

Fuels

.............

47,852,427

43,377,518

—

91,229,945

Pharmaceuticals

.......................

84,384,001

58,405,973

—

142,789,974

Software

.............................

39,680,816

—

—

39,680,816

Specialized

REITs

......................

27,964,790

—

—

27,964,790

Specialty

Retail

........................

63,751,492

—

—

63,751,492

Technology

Hardware,

Storage

&

Peripherals

.

—

22,111,795

—

22,111,795

Tobacco

.............................

—

36,405,775

—

36,405,775

Trading

Companies

&

Distributors

..........

72,827,571

—

—

72,827,571

13. #### Fair

#### Value

#### Measurements
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Franklin

#### Mutual

#### Quest

#### Fund
(continued)

#### Assets:
(continued)

Investments

in

Securities:

a

(continued)

Preferred

Stocks

:

Diversified

Telecommunication

Services

.....

$

—

$

—

$

10,791,029

$

10,791,029

Technology

Hardware,

Storage

&

Peripherals

.

—

14,818,166

—

14,818,166

Rights

.................................

—

—

1,656,703

1,656,703

Warrants

...............................

—

—

2,018,557

2,018,557

Convertible

Bonds

.......................

—

6,975,000

—

6,975,000

Corporate

Bonds

........................

—

99,389,951

—

99,389,951

Senior

Floating

Rate

Interests

...............

—

139,008,891

143,675,741

282,684,632

Companies

in

Liquidation

..................

—

—

—

b

—

Short

Term

Investments

...................

55,200,340

—

—

55,200,340

Total

Investments

in

Securities

...........

$1,479,272,985

$999,380,374

f

$194,642,428

$2,673,295,787

#### Franklin

#### Mutual

#### Shares

#### Fund

#### Assets:
Investments

in

Securities:

a

Common

Stocks

:

Automobiles

..........................

131,238,282

—

—

131,238,282

Banks

...............................

596,116,106

—

—

596,116,106

Broadline

Retail

.......................

205,368,633

—

—

205,368,633

Building

Products

......................

162,571,402

—

—

162,571,402

Capital

Markets

........................

133,492,805

—

—

133,492,805

Chemicals

...........................

117,583,096

—

—

117,583,096

Communications

Equipment

..............

125,486,569

—

—

125,486,569

Consumer

Finance

.....................

129,718,343

—

—

129,718,343

Consumer

Staples

Distribution

&

Retail

......

162,507,559

—

—

162,507,559

Containers

&

Packaging

.................

116,466,225

—

—

116,466,225

Diversified

Telecommunication

Services

.....

—

—

15,335,635

15,335,635

Electric

Utilities

........................

246,282,269

—

—

246,282,269

Electronic

Equipment,

Instruments

&

Components

........................

72,483,638

—

—

72,483,638

Energy

Equipment

&

Services

.............

109,232,550

—

—

109,232,550

Entertainment

.........................

159,290,060

—

—

159,290,060

Financial

Services

......................

198,663,384

—

—

198,663,384

Food

Products

........................

—

113,127,705

—

113,127,705

Ground

Transportation

..................

108,066,458

—

—

108,066,458

Health

Care

Equipment

&

Supplies

.........

291,610,742

—

—

291,610,742

Health

Care

Providers

&

Services

..........

55,855,235

—

—

55,855,235

Household

Products

....................

150,395,052

—

—

150,395,052

Insurance

............................

323,822,882

—

—

323,822,882

Interactive

Media

&

Services

..............

250,119,865

—

—

250,119,865

Life

Sciences

Tools

&

Services

............

173,026,667

—

—

173,026,667

Machinery

............................

166,303,480

—

—

166,303,480

Metals

&

Mining

.......................

139,309,868

—

—

139,309,868

Oil,

Gas

&

Consumable

Fuels

.............

276,498,059

—

—

276,498,059

Personal

Care

Products

.................

134,752,439

—

—

134,752,439

Pharmaceuticals

.......................

263,614,823

332,963,445

—

596,578,268

Professional

Services

...................

170,838,514

—

—

170,838,514

Retail

REITs

..........................

133,207,197

—

—

133,207,197

Semiconductors

&

Semiconductor

Equipment

.

108,699,958

—

—

108,699,958

Software

.............................

241,338,482

—

—

241,338,482

Specialized

REITs

......................

113,415,938

—

—

113,415,938

Specialty

Retail

........................

141,094,987

—

—

141,094,987

Tobacco

.............................

—

120,586,239

—

120,586,239

Trading

Companies

&

Distributors

..........

255,122,748

—

—

255,122,748

13. #### Fair

#### Value

#### Measurements
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Franklin

#### Mutual

#### Shares

#### Fund
(continued)

#### Assets:
(continued)

Investments

in

Securities:

a

(continued)

Preferred

Stocks

.........................

$

—

$

—

$

14,116,549

$

14,116,549

Warrants

...............................

—

—

2,640,630

2,640,630

Corporate

Bonds

........................

—

43,295,585

—

43,295,585

Senior

Floating

Rate

Interests

...............

—

134,960,333

—

134,960,333

Companies

in

Liquidation

..................

—

—

—

b

—

Short

Term

Investments

...................

17,117,735

—

—

17,117,735

Total

Investments

in

Securities

...........

$6,180,712,050

$744,933,307

g

$32,092,814

$6,957,738,171

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

b

Includes

financial

instruments

determined

to

have

no

value.

c

Includes

foreign

securities

valued

at

$805,815,299,

which

were

categorized

as

Level

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

d

Includes

foreign

securities

valued

at

$4,792,660,622,

which

were

categorized

as

Level

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

e

Includes

foreign

securities

valued

at

$1,110,207,290,

which

were

categorized

as

Level

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

f

Includes

foreign

securities

valued

at

$754,006,532,

which

were

categorized

as

Level

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

g

Includes

foreign

securities

valued

at

$566,677,389,

which

were

categorized

as

Level

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

13. #### Fair

#### Value

#### Measurements
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

A

reconciliation

in

which

Level

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

At

December

31,

2025,

the

reconciliation

is

as

follows:

#### Balance

#### at

#### Beginning

#### of

#### Year

#### Purchases

#### a

#### Sales

#### b

#### Transfer

#### Into

#### Level

#### 3

#### Transfer

#### Out

#### of

#### Level

#### 3

#### Net

#### Accretion

#### (Amortiza-

#### tion)

#### Net

#### Realized

#### Gain
(Loss)

#### Net

#### Unr

#### ealized

#### Appreciatio

#### n

#### (#### Depreciation

####)

#### Balance

#### at

#### End

#### of

#### Year

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### on

#### Assets

#### Held

#### at

#### Year

#### End

#### a

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Assets:
Investments

in

Securities:

Common

Stocks

:

Communications

Equipment

.......

$

55,505,900

$

—

$

—

$

—

$

—

$

—

$

—

$

(30,728,429)

$

24,777,471

$

(30,728,429)

Diversified

Telecommunication

Services

........

30,751,158

10,667,194

(28,826,078)

—

—

—

14,804,896

(15,674,243)

11,722,927

1,055,733

Media

...........

—

(35) —

—

—

(169) 178

—

—

Preferred

Stocks

:

Diversified

Telecommunication

Services

........

—

9,523,836

—

—

—

—

—

1,267,193

10,791,029

1,267,193

Rights

:

Media

...........

—

—

c

—

—

—

—

—

1,656,703

1,656,703

1,656,703

Warrants

:

Diversified

Telecommunication

Services

........

—

1,603,618

—

—

—

—

—

414,939

2,018,557

414,939

Senior

Floating

Rate

Interests

:

Wireless

Telecommunication

Services

........

132,200,409

11,651,148

—

—

—

387,708

—

(563,524)

143,675,741

(563,524)

Companies

in

Liquidation

:

—

c

—

—

—

—

—

—

—

—

c

—

Total

Investments

in

Securities

............

$218,457,493

$33,445,796

$(28,826,113)

$—

$—

$387,708

$14,804,727

$(43,627,183)

$194,642,428

$(26,897,385)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Includes

financial

instruments

determined

to

have

no

value.

13. #### Fair

#### Value

#### Measurements
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

December

31,

2025,

are

as

follows:

14. #### Operating

#### Segments
Each

Fund

operates

as

a

single

operating

segment,

which

is

an

investment

portfolio.

The

portfolio

managers

assigned

to

the

Fund

within the

Funds'

Investment

manager

serve

as

the

Chief

Operating

Decision

Maker

("CODM")

and are

responsible

for

evaluating each

Fund's

operating

results

and

allocating

resources

in

accordance

with each

Fund's

investment

strategy.

Internal

reporting

provided

to

the

CODM

aligns

with

the

accounting

policies

and

measurement

principles

used

in

the

financial

statements.

For

information

regarding

segment

assets,

segment

profit

or

loss,

and

significant

expenses,

refer

to

the

Statements

of

Assets

and

Liabilities

and

the

Statements

of

Operations,

along

with

the

related

notes

to

the

financial

statements.

The

Schedules

of

Investments

provides

details

of

the

Funds'

investments

that

generate

returns

such

as

interest,

dividends,

and

realized

and

unrealized

gains

or

losses.

Performance

metrics,

including

portfolio

turnover

and

expense

ratios,

are

disclosed

in

the

Financial

Highlights.

15. #### Subsequent

#### Events
The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

#### Description

#### Fair

#### Value

#### at

#### End

#### of

#### Year

#### Valuation

#### Technique

#### Unobservable

#### Inputs

#### Amount

#### /

#### Range

#### (Weighted

#### Average)

#### a

#### Impact

#### to

#### Fair

#### Value

#### if

#### Input

#### Increases

#### b

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Assets:
Investments

in

Securities:

Common

Stocks:

Communications

Equipment.

.

.

.

.

.

.

.

$24,777,471

Market

comparables

Discount

for

lack

of

marketability

5.6%

Decrease

EV

/

EBITDA

multiple

7.8x

Increase

EV

/

revenue

multiple

1.6x

Increase

Senior

Floating

Rate

Interests:

Wireless

Telecommunication

Services

143,675,741

Discounted

cash

flow

Discount

rate

10.3%

-

11.8%

(11.5%)

Decrease

All

Other

Investments

.

.

.

.

.

.

.

.

.

26,189,216

c,d

Total

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$194,642,428

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

b

Represents

the

directional

change

in

the

fair

value

of

the

Level

financial

instruments

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

c

Includes

the

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

d

Includes

financial

instruments

determined

to

have

no

value.

#### Abbreviations

#### List

#### EBITDA

#### -
Earnings

before

interest,

taxes,

depreciation

and

amortization

#### EV

#### -
Enterprise

value

13. #### Fair

#### Value

#### Measurements
(continued)

Franklin

Mutual

Series

Funds

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Abbreviations

#### Selected

#### Portfolio

#### ADR
American

Depositary

Receipt

#### CME
Chicago

Mercantile

Exchange

#### PIK
Payment-In-Kind

#### REIT
Real

Estate

Investment

Trust

#### SOFR
Secured

Overnight

Financing

Rate

Franklin

Mutual

Series

Funds

Report

of

Independent

Registered

Public

Accounting

Firm

franklintempleton.com

Annual

Report

![](epub4554512169697280.jpg)

To

the

Shareholders

and

the

Board

of

Trustees

of

Franklin

Mutual

Series

Funds

#### Opinion

#### on

#### the

#### Financial

#### Statements
We

have

audited

the

accompanying

statements

of

assets

and

liabilities

of

Franklin

Mutual

Series

Funds

(the

"Trust")

(comprising

Franklin

Mutual

Beacon

Fund,

Franklin

Mutual

Global

Discovery

Fund,

Franklin

Mutual

International

Value

Fund,

Franklin

Mutual

Quest

Fund,

and

Franklin

Mutual

Shares

Fund

(collectively

referred

to

as

the

"Funds")),

including

the

schedules

of

investments

as

of

December

31,

2025,

and

the

related

statements

of

operations

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended

and

the

related

notes

(collectively

referred

to

as

the

"financial

statements").

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

comprising

Franklin

Mutual

Series

Funds

at

December

31,

2025,

the

results

of

their

operations

for

the

year

then

ended,

the

changes

in

their

net

assets

for

each

of

the

two

years

in

the

period

then

ended

and

their

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

in

conformity

with

U.S.

generally

accepted

accounting

principles.

#### Basis

#### for

#### Opinion
These

financial

statements

are

the

responsibility

of

the

Trust's

management.

Our

responsibility

is

to

express

an

opinion

on

each

of

the

Funds'

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

("PCAOB")

and

are

required

to

be

independent

with

respect

to

the

Trust

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Trust

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

the

Trust's

internal

control

over

financial

reporting.

As

part

of

our

audits,

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting,

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Trust's

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2025,

by

correspondence

with

the

custodian,

brokers

and

others;

when

replies

were

not

received

from

brokers

and

others,

we

performed

other

auditing

procedures.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

auditor

of

one

or

more

Franklin

investment

companies

since

1987. Boston,

Massachusetts

February

19,

2026

Franklin

Mutual

Series

Funds

Tax

Information

(unaudited)

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during their

fiscal

year.

The

Funds

below hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2025:

Note

(1) -

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Under

Section

853

of

the

Internal

Revenue

Code,

the

Funds

below intend

to

elect

to

pass

through

to

their

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Funds

during

the

fiscal

year

ended

December

31,

2025:

#### Pursuant

#### to:

#### Franklin

#### Mutual

#### Beacon

#### Fund

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$156,446,820

$755,173,632

—

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$28,477,665

$57,505,282

$337,867

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$66,550,451

$221,781,901

$30,404,434

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$29,933,026

$72,262,502

—

Section

163(j)

Interest

Dividends

Earned

§163(j)

$1,182,828

$32,278,678

$1,047,903

Interest

Earned

from

Federal

Obligations

Note

(1) $742,944

$3,852,411

$530,286

#### Pursuant

#### to:

#### Franklin

#### Mutual

#### Quest

#### Fund

#### Franklin

#### Mutual

#### Shares

#### Fund
Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

—

$365,901,516

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$22,623,000

$102,327,364

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$51,406,326

$140,470,466

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

—

$44,424,755

Section

163(j)

Interest

Dividends

Earned

§163(j)

$54,864,606

$25,727,807

Interest

Earned

from

Federal

Obligations

Note

(1) $2,184,327

$2,679,075

#### Franklin

#### Mutual

#### Global

#### Discovery

#### Fund

#### Franklin

#### Mutual

#### International

#### Value

#### Fund
Foreign

Taxes

Paid

$9,136,300

$2,211,360

Foreign

Source

Income

Earned

$131,548,958

$27,622,026

Franklin

Mutual

Series

Funds

franklintempleton.com

Annual

Report

#### Changes

#### In

#### and

#### Disagreements

#### with

#### Accountants
For

the

period

covered

by

this

report

Not

applicable.

#### Results

#### of

#### Meeting(s)

#### of

#### Shareholders
For

the

period

covered

by

this

report

Not

applicable.

#### Remuneration

#### Paid

#### to

#### Directors,

#### Officers

#### and

#### Others
For

the

period

covered

by

this

report

Refer

to

the

financial

statements

included

herein.

Remuneration

to

officers

is

paid

by

the

Fund's

investment

manager

according

to

the

terms

of

the

agreement.

#### Board

#### Approval

#### of

#### Management

#### and

#### Subadvisory

#### Agreements
For

the

period

covered

by

this

report

Not

applicable.

MS-AFSOI

02/26©

2026

Franklin

Templeton.

All

rights

reserved.

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

---

| | |
|:---|:---|
| ITEM 15. | 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 16. CONTROLS AND PROCEDURES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant's chief executive officer and chief financial officer have concluded
 that the Registrant's disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940,
 as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the
 disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under
 the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There were no changes in the Registrant's internal control over financial reporting
 (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected
 or are likely to materially affect the Registrant's internal control over financial reporting.

ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

ITEM 19. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (1) Code of Ethics attached hereto.](fmsf-efp22368_ex99code.htm)

Exhibit 99.CODE ETH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.](fmsf-efp22368_ex99cert.htm)

Exhibit 99.CERT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.](fmsf-efp22368_ex99906cert.htm)

Exhibit 99.906CERT

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, there unto duly authorized.

---

| | |
|:---|:---|
| **Franklin Mutual Series Funds** | **Franklin Mutual Series Funds** |
| By: | /s/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | February 26, 2026 |

---

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/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | February 26, 2026 |
| By: | /s/ Jeffrey White |
|  | Jeffrey White |
|  | Chief Financial Officer, Chief Accounting Officer and Treasurer |
| Date: | February 26, 2026 |

---

## Ex-99.Code

**Code of Ethics for Principal Executives & Senior Financial Officers**

---

| | |
|:---|:---|
| **Procedures** | &nbsp;&nbsp;&nbsp;Revised [September 27, 2024] |

---

**FRANKLIN TEMPLETON AFFILIATED FUNDS**

**CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND**

**SENIOR FINANCIAL OFFICERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Covered Officers
 and Purpose of the Code

This code of ethics (the "Code") applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the "Covered Officers") of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission ("SEC") (collectively, "FT Funds") for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Honest
 and ethical conduct, including the ethical resolution of actual or apparent conflicts of
 interest between personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Full,
 fair, accurate, timely and understandable disclosure in reports and documents that a registrant
 files with, or submits to, the SEC and in other public communications made by or on behalf
 of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance
 with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 prompt internal reporting of violations of the Code to an appropriate person or persons identified
 in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accountability
 for adherence to the Code.

Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

*\** Rule 38a-1 under the Investment Company Act of 1940 ("1940 Act") and Rule 206(4)-7 under the Investment Advisers Act of 1940 ("Advisers Act") (together the "Compliance Rule") require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws ("Compliance Rule Policies and Procedures").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Other Policies
 and Procedures

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.

Franklin Resources, Inc. has separately adopted the <u>Code of Ethics and Business Conduct</u> ("Business Conduct"), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employee's business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee policies.

Additionally, the Franklin Templeton Funds have separately adopted the <u>FTI Personal Investments and Insider Trading Policy</u> governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.

Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds' adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Covered
 Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

**Overview.** A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of a position with the FT Funds.

Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as "affiliated persons" of the FT Funds. The FT Funds' and the investment advisers' compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or for all three), be involved in establishing policies and implementing decisions that will have different effects on the

adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds' Boards of Directors ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 use his or her personal influence or personal relationships improperly to influence investment
 decisions or financial reporting by the FT Funds whereby the Covered Officer would benefit
 personally to the detriment of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 cause the FT Funds to take action, or fail to take action, for the individual personal benefit
 of the Covered Officer rather than the benefit of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated
 persons for reports of potential violations that are made in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Report
 at least annually the following affiliations or other relationships:<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all
 directorships for public companies and all companies that are required to file reports with
 the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect business relationship with any independent directors of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect business relationship with any independent public accounting firm (which
 are not related to the routine issues related to the firm's service as the Covered
 Persons accountant); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect interest in any transaction with any FT Fund that will benefit the officer
 (not including benefits derived from the advisory, sub-advisory, distribution or service
 agreements with affiliates of Franklin Resources).

These reports will be reviewed by the Legal Department for compliance with the Code.

There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include<sup>2</sup>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Service
 as a director on the board of any public or private Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 receipt of any gifts in excess of $100 from any person, from any corporation or association.

<sup>1</sup> Reporting of these affiliations or other relationships shall be made by completing the annual Directors and Officers Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General Counsel.

<sup>2</sup> Any activity or relationship that would present a conflict for a Covered Officer may also present a conflict for the Covered Officer if a member of the Covered Officer's immediate family engages in such an activity or has such a relationship. The Covered Person should also obtain written approval by FT's General Counsel in such situations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 receipt of any entertainment from any Company with which the FT Funds has current or prospective
 business dealings unless such entertainment is business related, reasonable in cost, appropriate
 as to time and place, and not so frequent as to raise any question of impropriety. Notwithstanding
 the foregoing, the Covered Officers must obtain prior approval from the Franklin Resources
 General Counsel for any entertainment with a value in excess of $1000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 ownership interest in, or any consulting or employment relationship with, any of the FT Fund's
 service providers, other than an investment adviser, principal underwriter, administrator
 or any affiliated person thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A
 direct or indirect financial interest in commissions, transaction charges or spreads paid
 by the FT Funds for effecting portfolio transactions or for selling or redeeming shares other
 than an interest arising from the Covered Officer's employment, such as compensation
 or equity ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Franklin
 Resources General Counsel or Deputy General Counsel, or the Chief Compliance Officer, will
 provide a report to the FT Funds Audit Committee of any approvals granted at the next regularly
 scheduled meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Disclosure
 and Compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should familiarize himself with the disclosure requirements generally applicable
 to the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts
 about the FT Funds to others, whether within or outside the FT Funds, including to the FT
 Funds' directors and auditors, and to governmental regulators and self- regulatory
 organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should, to the extent appropriate within his or her area of responsibility,
 consult with other officers and employees of the FT Funds, the FT Fund's adviser and
 the administrator with the goal of promoting full, fair, accurate, timely and understandable
 disclosure in the reports and documents the FT Funds file with, or submit to, the SEC and
 in other public communications made by the FT Funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It
 is the responsibility of each Covered Officer to promote compliance with the standards and
 restrictions imposed by applicable laws, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Reporting
 and Accountability

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upon
 becoming a covered officer affirm in writing to the Board that he or she has received, read,
 and understands the Code (see Exhibit A);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annually
 thereafter affirm to the Board that he has complied with the requirements of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Notify
 Franklin Resources' General Counsel or Deputy General Counsel promptly if he or she
 knows of any violation of this Code. Failure to do so is itself is a violation of this Code.

Franklin Resources' General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation.<sup>3</sup> However, the Independent Directors of the respective FT Funds will consider any approvals or waivers<sup>4</sup> sought by any Chief Executive Officers of the Funds.

The FT Funds will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Franklin
 Resources General Counsel or Deputy General Counsel will take all appropriate action to investigate
 any potential violations reported to the Legal Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If,
 after such investigation, the General Counsel or Deputy General Counsel believes that no
 violation has occurred, The General Counsel is not required to take any further action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 matter that the General Counsel or Deputy General Counsel believes is a violation will be
 reported to the Independent Directors of the appropriate FT Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If
 the Independent Directors concur that a violation has occurred, it will inform and make a
 recommendation to the Board of the appropriate FT Fund or Funds, which will consider appropriate
 action, which may include review of, and appropriate modifications to, applicable policies
 and procedures; notification to appropriate personnel of the investment adviser or its board;
 or a recommendation to dismiss the Covered Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 Independent Directors will be responsible for granting waivers, as appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 changes to or waivers of this Code will, to the extent required, are disclosed as provided
 by SEC rules.<sup>5</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. Other
 Policies and Procedures

This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FTI Personal Investments and Insider Trading Policy, adopted by the FT Funds, FT investment advisers and FT Fund's principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FT's Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. Amendments

Any amendments to this Code must be approved or ratified by a majority vote of the FT Funds' Board including a majority of independent directors.

<sup>3</sup> Franklin Resources General Counsel and Deputy General Counsel are authorized to consult, as appropriate, with members of the Audit Committee, counsel to the FT Funds and counsel to the Independent Directors, and are encouraged to do so.

<sup>4</sup> Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant. See Part X.

<sup>5</sup> See Part X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds' Board and their counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. Internal
 Use

The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. Disclosure
 on Form N-CSR

Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.

The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrant's annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this intention.

The Legal Department shall be responsible for ensuring that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a
 copy of the Code is filed with the SEC as an exhibit to each Fund's annual report;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 amendments to, or waivers (including implicit waivers) from, a provision of the Code is disclosed
 in the registrant's annual report on Form N-CSR.

In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N- CSR.

In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.

**Exhibit A**

**ACKNOWLEDGMENT FORM**

**Franklin Templeton Funds Code of Ethics**

**For Principal Executives and Senior Financial Officers**

**Instructions:**

&nbsp;&nbsp;&nbsp;&nbsp;1. Complete
 all sections of this form.

&nbsp;&nbsp;&nbsp;&nbsp;2. Print
 the completed form, sign, and date.

&nbsp;&nbsp;&nbsp;&nbsp;3. Submit
 completed form to FT's General Counsel c/o Code of Ethics Administration within 10
 days of becoming a Covered Officer and by February 15<sup>th</sup> of each subsequent year.

---

| | |
|:---|:---|
| **E-mail:** | Code of Ethics Inquiries & Requests (internal address);<br> lpreclear@franklintempleton.com (external address) |

---

---

| |
|:---|
| **Covered Officer's Name:** |
| **Title:** |
| **Department:** |
| **Location:** |
| **Certification for Year Ending:** |

---

***To: Franklin Resources General Counsel, Legal Department***

I acknowledge receiving, reading and understanding the Franklin Templeton Fund's Code of Ethics for Principal Executive Officers and Senior Financial Officers (the "Code"). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary action, including termination of employment.

---

| | |
|:---|:---|
| ***Signature*** | ***Date signed*** |

---

## Ex-99.Cert

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

**<u>CERTIFICATIONS</u>**

I, Christopher Kings, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this report on Form N-CSR of **Franklin Mutual Series Funds;** 

&nbsp;&nbsp;&nbsp;&nbsp;2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or
 omit to state a material fact necessary to make the statements made, in light of the circumstances
 under which such statements were made, not misleading with respect to the period covered
 by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based
 on my knowledge, the financial statements, and other financial information included in this
 report, fairly present in all material respects the financial condition, results of operations,
 changes in net assets, and cash flows (if the financial statements are required to include
 a statement of cash flows) of the registrant as of, and for, the periods presented in this
 report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 registrant's other certifying officers and I are responsible for establishing and maintaining
 disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company
 Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under
 the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to the
 registrant, including its consolidated subsidiaries, is made known to us by others within
 those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed
 such internal control over financial reporting, or caused such internal control over financial
 reporting to be designed under our supervision, to provide reasonable assurance regarding
 the reliability of financial reporting and the preparation of financial statements for external
 purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and procedures,
 as of a date within 90 days prior to the filing date of this report based on such evaluation;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed
 in this report any change 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 registrant's internal control over financial
 reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 registrant's other certifying officers and I have disclosed to the registrant's
 auditors and the audit committee of the registrant's board of directors (or persons
 performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All
 significant deficiencies and material weaknesses in the design or operation of internal control
 over financial reporting which are reasonably likely to adversely affect the registrant's
 ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any
 fraud, whether or not material, that involves management or other employees who have a significant
 role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | February 26, 2026 |
| /s/ Christopher Kings | /s/ Christopher Kings |
| Christopher Kings | Christopher Kings |
| Chief Executive Officer – Finance and Administration | Chief Executive Officer – Finance and Administration |

---

**<u>CERTIFICATIONS</u>**

I, Jeffrey White, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this report on Form N-CSR of **Franklin Mutual Series Funds**;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or
 omit to state a material fact necessary to make the statements made, in light of the circumstances
 under which such statements were made, not misleading with respect to the period covered
 by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based
 on my knowledge, the financial information included in this report, and the financial statements
 on which the financial information is based, fairly present in all material respects the
 financial condition, results of operations, changes in net assets, and cash flows (if the
 financial statements are required to include a statement of cash flows) of the registrant
 as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 registrant's other certifying officers and I are responsible for establishing and maintaining
 disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company
 Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under
 the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to the
 registrant, including its consolidated subsidiaries, is made known to us by others within
 those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed
 such internal control over financial reporting, or caused such internal control over financial
 reporting to be designed under our supervision, to provide reasonable assurance regarding
 the reliability of financial reporting and the preparation of financial statements for external
 purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed
 in this report any change 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 registrant's internal control over financial
 reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 registrant's other certifying officers and I have disclosed to the registrant's
 auditors and the audit committee of the registrant's board of directors (or persons
 performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant
deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely
to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | February 26, 2026 |
| /s/ Jeffrey White | /s/ Jeffrey White |
| Jeffrey White | Jeffrey White |
| Chief Financial Officer, Chief Accounting Officer and Treasurer | Chief Financial Officer, Chief Accounting Officer and Treasurer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION**

**Christopher Kings,** Chief Executive Officer – Finance and Administration, and **Jeffrey White,** Chief Financial Officer, Chief Accounting Officer and Treasurer of **Franklin Mutual Series Funds (the "Registrant"), each certify to the best of** their knowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended **December 31, 2025** (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| **Chief Executive Officer –** | **Chief Financial Officer, Chief** |
| **Finance and Administration** | **Accounting Officer and Treasurer** |
| Franklin Mutual Series Funds | Franklin Mutual Series Funds |
| /s/ Christopher Kings | /s/ Jeffrey White |
| Christopher Kings | Jeffrey White |
| Date: February 26, 2026 | Date: February 26, 2026 |

---

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.