2026-07-1474200026700_FranklinMutualBeaconFund_ClassA

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Beacon

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$18.60

$15.83

$15.59

$14.37

$17.96

$16.48

Income

from

investment

operations

Net

investment

income

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

0.20

0.28

0.32

0.35

0.28

0.26

Net

realized

and

unrealized

gains

(losses)

0.19

3.77

0.90

1.84

(2.45)

2.45

Total

from

investment

operations

........

0.39

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)

(1.19)

(0.86)

Total

distributions

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

—

(1.28)

(0.98)

(0.97)

(1.42)

(1.23)

Net

asset

value,

end

period

..........

$18.99

$18.60

$15.83

$15.59

$14.37

$17.96

Total

return

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

2.10%

25.57%

7.83%

15.48%

(11.67)%

16.68%

Ratios

average

net

assets

Expenses

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

0.76%

0.77%

0.81%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

Net

investment

income

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

2.12%

1.59%

1.91%

2.32%

1.73%

1.41%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$2,293,902

$2,338,042

$2,039,624

$2,106,341

$2,010,947

$2,508,213

Portfolio

turnover

rate

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

17.26%

46.86%

15.03%

44.54%

49.68%

40.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.06

per

income

received

the

form

special

dividends

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.47%.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Beacon

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$18.31

$15.60

$15.38

$14.19

$17.76

$16.30

Income

from

investment

operations

Net

investment

income

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

0.17

0.23

0.27

0.31

0.23

0.21

Net

realized

and

unrealized

gains

(losses)

0.19

3.71

0.88

1.81

(2.42)

2.43

Total

from

investment

operations

........

0.36

3.94

1.15

2.12

(2.19)

2.64

Less

distributions

from:

Net

investment

income

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

—

(0.22)

(0.28)

(0.19)

(0.32)

Net

realized

gains

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

—

(1.01)

(0.65)

(1.19)

(0.86)

Total

distributions

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

—

(1.23)

(0.93)

(1.38)

(1.18)

Net

asset

value,

end

period

..........

$18.67

$18.31

$15.60

$15.38

$14.19

$17.76

Total

return

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

1.97%

25.28%

7.52%

15.19%

(11.91)%

16.46%

Ratios

average

net

assets

Expenses

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

1.01%

1.02%

1.06%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

Net

investment

income

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

1.88%

1.35%

1.66%

2.07%

1.48%

1.16%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$858,455

$883,954

$788,354

$829,104

$798,281

$987,817

Portfolio

turnover

rate

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

17.26%

46.86%

15.03%

44.54%

49.68%

40.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.06

per

income

received

the

form

special

dividends

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.22%.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Beacon

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$18.54

$15.79

$15.53

$14.32

$17.88

$16.37

Income

from

investment

operations

Net

investment

income

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

0.11

0.15

0.20

0.12

0.08

Net

realized

and

unrealized

gains

(losses)

0.19

3.73

0.90

1.81

(2.43)

2.43

Total

from

investment

operations

........

0.30

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)

(1.19)

(0.86)

Total

distributions

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

—

(1.09)

(0.79)

(0.80)

(1.25)

(1.00)

Net

asset

value,

end

period

..........

$18.84

$18.54

$15.79

$15.53

$14.32

$17.88

Total

return

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

1.62%

24.30%

6.77%

14.28%

(12.55)%

15.55%

Ratios

average

net

assets

Expenses

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

1.76%

1.77%

1.80%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

Net

investment

income

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

1.13%

0.62%

0.92%

1.32%

0.75%

0.43%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$12,953

$14,037

$14,803

$17,359

$18,813

$27,853

Portfolio

turnover

rate

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

17.26%

46.86%

15.03%

44.54%

49.68%

40.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.06

per

income

received

the

form

special

dividends

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

0.48%.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Beacon

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$17.95

$15.32

$15.12

$13.97

$17.51

$16.09

Income

from

investment

operations

Net

investment

income

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

0.15

0.19

0.22

0.27

0.19

0.16

Net

realized

and

unrealized

gains

(losses)

0.18

3.64

0.87

1.77

(2.38)

2.40

Total

from

investment

operations

........

0.33

3.83

1.09

2.04

(2.19)

2.56

Less

distributions

from:

Net

investment

income

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

—

(0.19)

(0.24)

(0.16)

(0.28)

Net

realized

gains

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

—

(1.01)

(0.65)

(1.19)

(0.86)

Total

distributions

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

—

(1.20)

(0.89)

(1.35)

(1.14)

Net

asset

value,

end

period

..........

$18.28

$17.95

$15.32

$15.12

$13.97

$17.51

Total

return

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

1.84%

24.97%

7.24%

14.87%

(12.08)%

16.12%

Ratios

average

net

assets

Expenses

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

1.26%

1.27%

1.31%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

Net

investment

income

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

1.62%

1.09%

1.39%

1.82%

1.22%

0.92%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$1,368

$1,439

$1,160

$1,348

$1,329

$1,388

Portfolio

turnover

rate

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

17.26%

46.86%

15.03%

44.54%

49.68%

40.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.06

per

income

received

the

form

special

dividends

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

0.97%.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Beacon

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$18.58

$15.82

$15.58

$14.37

$17.96

$16.47

Income

from

investment

operations

Net

investment

income

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

0.20

0.29

0.32

0.31

0.30

0.26

Net

realized

and

unrealized

gains

(losses)

0.20

3.75

0.90

1.88

(2.46)

2.47

Total

from

investment

operations

........

0.40

4.04

1.22

2.19

(2.16)

2.73

Less

distributions

from:

Net

investment

income

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

—

(0.27)

(0.33)

(0.24)

(0.38)

Net

realized

gains

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

—

(1.01)

(0.65)

(1.19)

(0.86)

Total

distributions

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

—

(1.28)

(0.98)

(1.43)

(1.24)

Net

asset

value,

end

period

..........

$18.98

$18.58

$15.82

$15.58

$14.37

$17.96

Total

return

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

2.15%

25.57%

7.88%

15.48%

(11.61)%

16.83%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

0.72%

0.73%

0.71%

0.77%

Expenses

net

waiver

and

payments

affiliates

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

0.72%

0.70%

0.75%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

Net

investment

income

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

2.17%

1.64%

1.94%

2.06%

1.83%

1.39%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$264,719

$272,010

$218,034

$236,837

$101,313

$151,226

Portfolio

turnover

rate

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

17.26%

46.86%

15.03%

44.54%

49.68%

40.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.06

per

income

received

the

form

special

dividends

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.51%.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited),

June

30,

2026

Franklin

Mutual

Beacon

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Country

Value

Common

Stocks

99.0%

Automobiles

1.7%

General

Motors

Co.

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

United

States

737,012

56,808,885

Banks

11.5%

BNP

Paribas

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

France

430,526

50,282,492

DBS

Group

Holdings

Ltd.

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

Singapore

3,410,386

172,684,215

JPMorgan

Chase

Co.

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

United

States

523,715

171,427,631

394,394,338

Beverages

1.2%

Heineken

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

Netherlands

503,179

42,248,216

Broadline

Retail

4.2%

Amazon.com,

Inc.

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

United

States

601,169

143,282,619

Building

Products

4.2%

Johnson

Controls

International

plc

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

United

States

996,976

145,668,163

Capital

Markets

2.6%

BlackRock,

Inc.

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

United

States

93,768

90,163,558

Electric

Utilities

1.9%

PPL

Corp.

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

United

States

1,819,504

66,138,970

Entertainment

1.4%

Walt

Disney

Co.

(The)

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

United

States

488,507

47,018,799

Food

Products

3.6%

Nestle

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

Switzerland

1,191,275

122,183,311

Health

Care

Equipment

Supplies

7.8%

Abbott

Laboratories

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

United

States

1,134,822

102,973,748

Cooper

Cos.,

Inc.

(The)

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

United

States

1,602,363

114,905,451

Medtronic

plc

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

United

States

613,576

48,000,051

265,879,250

Household

Products

5.2%

Colgate-Palmolive

Co.

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

United

States

1,487,979

136,417,915

Reckitt

Benckiser

Group

plc

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

United

Kingdom

646,799

42,128,344

178,546,259

Insurance

8.5%

Hartford

Insurance

Group,

Inc.

(The)

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

United

States

1,100,992

145,903,460

Progressive

Corp.

(The)

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

United

States

674,075

147,251,684

293,155,144

Interactive

Media

Services

2.9%

Meta

Platforms,

Inc.

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

United

States

178,419

100,501,639

Life

Sciences

Tools

Services

3.4%

Thermo

Fisher

Scientific,

Inc.

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

United

States

229,619

115,121,782

Machinery

4.2%

Parker-Hannifin

Corp.

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

United

States

147,702

144,470,280

Metals

Mining

3.0%

Reliance,

Inc.

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

United

States

277,944

103,839,878

Oil,

Gas

Consumable

Fuels

4.3%

Chevron

Corp.

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

United

States

396,490

65,722,182

Shell

plc

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

United

States

2,086,583

81,074,166

146,796,348

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Beacon

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Pharmaceuticals

11.1%

Haleon

plc

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

United

States

31,412,767

144,754,658

Merck

Co.,

Inc.

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

United

States

415,496

53,391,236

Novartis

ADR

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

United

States

438,047

68,650,726

Roche

Holding

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

United

States

278,708

114,573,063

381,369,683

Retail

REITs

1.6%

Brixmor

Property

Group,

Inc.

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

United

States

1,693,059

53,382,150

Semiconductors

Semiconductor

Equipment

3.1%

Micron

Technology,

Inc.

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

United

States

49,710

57,379,756

NXP

Semiconductors

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

Netherlands

171,011

48,059,221

105,438,977

Software

4.7%

Microsoft

Corp.

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

United

States

428,450

159,820,419

Specialty

Retail

2.8%

Ulta

Beauty,

Inc.

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

United

States

215,769

97,307,504

Trading

Companies

Distributors

4.1%

Ferguson

Enterprises,

Inc.

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

United

States

599,752

142,339,142

Total

Common

Stocks

(Cost

2,423,962,986

)

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

3,395,875,314

Companies

Liquidation

0.0%

†

a,b,c

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

....

United

States

5,229,000

Total

Companies

Liquidation

(Cost

–

)

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

Total

Long

Term

Investments

(Cost

2,423,962,986

)

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

3,395,875,319

Short

Term

Investments

0.8%

Country

Value

Money

Market

Funds

0.8%

d,e

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.597

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

United

States

26,003,314

Total

Money

Market

Funds

(Cost

26,003,314

)

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

26,003,314

Total

Short

Term

Investments

(Cost

26,003,314

)

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

26,003,314

Total

Investments

(Cost

2,449,966,300

)

99.8

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

$3,421,878,633

Other

Assets,

less

Liabilities

0.2

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

9,519,017

Net

Assets

100.0%

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

$3,431,397,650

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Global

Discovery

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$32.09

$28.71

$30.54

$27.18

$31.58

$28.77

Income

from

investment

operations

Net

investment

income

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

0.39

0.65

0.66

0.53

0.59

0.42

Net

realized

and

unrealized

gains

(losses)

(0.01)

6.11

0.81

5.00

(2.20)

5.15

Total

from

investment

operations

........

0.38

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

period

..........

$32.47

$32.09

$28.71

$30.54

$27.18

$31.58

Total

return

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

1.18%

23.67%

4.84%

20.54%

(4.70)%

19.67%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

0.97%

0.95%

0.96%

0.95%

1.04%

Expenses

net

waiver

and

payments

affiliates

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

0.96%

0.95%

0.96%

0.95%

g,h

1.02%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

2.41%

2.02%

2.05%

1.78%

1.98%

1.28%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$3,228,749

$3,369,992

$3,037,070

$3,113,311

$2,857,597

$3,355,158

Portfolio

turnover

rate

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

25.52%

42.28%

34.55%

35.47%

53.26%

40.67%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.08

per

income

received

the

form

special

dividends

and

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.71%.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Global

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$30.92

$27.77

$29.64

$26.44

$30.81

$28.12

Income

from

investment

operations

Net

investment

income

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

0.34

0.55

0.56

0.44

0.50

0.33

Net

realized

and

unrealized

gains

(losses)

(0.01)

5.91

0.79

4.86

(2.15)

5.04

Total

from

investment

operations

........

0.33

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

period

..........

$31.25

$30.92

$27.77

$29.64

$26.44

$30.81

Total

return

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

1.07%

23.37%

4.57%

20.22%

(4.95)%

19.40%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.22%

1.20%

1.21%

1.20%

1.29%

Expenses

net

waiver

and

payments

affiliates

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

1.21%

1.20%

1.21%

1.20%

g,h

1.27%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

2.16%

1.77%

1.81%

1.54%

1.72%

1.03%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$5,128,474

$5,392,717

$4,949,776

$5,169,284

$4,749,259

$5,618,446

Portfolio

turnover

rate

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

25.52%

42.28%

34.55%

35.47%

53.26%

40.67%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.08

per

income

received

the

form

special

dividends

and

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.45%.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Global

Discovery

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$31.30

$28.07

$29.88

$26.60

$30.92

$28.12

Income

from

investment

operations

Net

investment

income

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

0.22

0.32

0.33

0.23

0.28

0.09

Net

realized

and

unrealized

gains

(losses)

(0.01)

5.95

0.80

4.86

(2.13)

5.04

Total

from

investment

operations

........

0.21

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

period

..........

$31.51

$31.30

$28.07

$29.88

$26.60

$30.92

Total

return

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

0.67%

22.44%

3.80%

19.30%

(5.63)%

18.50%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.96%

1.95%

1.96%

1.95%

2.04%

Expenses

net

waiver

and

payments

affiliates

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

1.96%

1.95%

1.96%

1.95%

g,h

2.02%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

1.39%

1.04%

1.07%

0.80%

0.97%

0.29%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$99,807

$117,208

$137,216

$173,812

$221,344

$335,605

Portfolio

turnover

rate

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

25.52%

42.28%

34.55%

35.47%

53.26%

40.67%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.08

per

income

received

the

form

special

dividends

and

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

0.70%.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Global

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$30.24

$27.22

$29.11

$26.00

$30.34

$27.70

Income

from

investment

operations

Net

investment

income

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

0.29

0.46

0.47

0.36

0.42

0.24

Net

realized

and

unrealized

gains

(losses)

(0.02)

5.79

0.78

4.77

(2.11)

4.97

Total

from

investment

operations

........

0.27

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

period

..........

$30.51

$30.24

$27.22

$29.11

$26.00

$30.34

Total

return

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

0.89%

23.08%

4.32%

19.92%

(5.17)%

19.10%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.47%

1.45%

1.46%

1.45%

1.54%

Expenses

net

waiver

and

payments

affiliates

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

1.46%

1.45%

1.46%

1.45%

g,h

1.52%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

1.91%

1.53%

1.56%

1.29%

1.47%

0.79%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$98,622

$106,741

$106,561

$114,920

$109,826

$136,983

Portfolio

turnover

rate

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

25.52%

42.28%

34.55%

35.47%

53.26%

40.67%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.08

per

income

received

the

form

special

dividends

and

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.20%.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Global

Discovery

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$32.06

$28.69

$30.52

$27.16

$31.57

$28.75

Income

from

investment

operations

Net

investment

income

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

0.40

0.67

0.68

0.56

0.62

0.44

Net

realized

and

unrealized

gains

(losses)

(0.01)

6.11

0.82

5.00

(2.21)

5.18

Total

from

investment

operations

........

0.39

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

period

..........

$32.45

$32.06

$28.69

$30.52

$27.16

$31.57

Total

return

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

1.22%

23.73%

4.92%

20.65%

(4.65)%

19.84%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

0.90%

0.89%

0.88%

0.89%

0.86%

0.95%

Expenses

net

waiver

and

payments

affiliates

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

0.89%

0.88%

0.89%

0.86%

g,h

0.92%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

2.48%

2.09%

2.13%

1.90%

2.07%

1.35%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$453,795

$481,987

$468,510

$498,705

$525,379

$653,091

Portfolio

turnover

rate

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

25.52%

42.28%

34.55%

35.47%

53.26%

40.67%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.08

per

income

received

the

form

special

dividends

and

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.79%.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited),

June

30,

2026

Franklin

Mutual

Global

Discovery

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Country

Value

Common

Stocks

96.6%

Aerospace

Defense

3.6%

Airbus

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

France

848,646

188,816,808

Babcock

International

Group

plc

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

United

Kingdom

10,564,802

133,527,515

322,344,323

Automobiles

1.3%

Toyota

Motor

Corp.

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

Japan

6,861,905

114,954,107

Banks

11.7%

Bank

America

Corp.

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

United

States

3,474,792

197,993,648

BNP

Paribas

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

France

2,037,001

237,907,783

DBS

Group

Holdings

Ltd.

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

Singapore

3,280,851

166,125,236

HSBC

Holdings

plc

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

United

Kingdom

8,866,567

167,660,530

JPMorgan

Chase

Co.

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

United

States

388,287

127,097,984

Wells

Fargo

Co.

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

United

States

1,945,627

160,786,615

1,057,571,796

Beverages

1.9%

Heineken

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

Netherlands

1,983,768

166,562,316

Broadline

Retail

1.6%

Pan

Pacific

International

Holdings

Corp.

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

Japan

27,814,787

140,980,448

Building

Products

1.6%

Cie

Saint-Gobain

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

France

1,561,326

141,584,768

Capital

Markets

3.1%

BlackRock,

Inc.

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

United

States

139,612

134,245,315

Deutsche

Bank

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

Germany

4,319,200

146,278,353

280,523,668

Chemicals

4.6%

BASF

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

Germany

2,181,746

116,621,075

International

Flavors

Fragrances,

Inc.

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

United

States

1,585,198

125,579,386

PPG

Industries,

Inc.

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

United

States

1,400,695

169,890,296

412,090,757

Consumer

Finance

1.6%

Capital

One

Financial

Corp.

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

United

States

735,161

147,488,000

Containers

Packaging

1.7%

International

Paper

Co.

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

United

States

4,105,838

156,432,428

Diversified

Telecommunication

Services

1.7%

Deutsche

Telekom

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

Germany

5,693,347

155,225,107

Electric

Utilities

1.0%

SSE

plc

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

United

Kingdom

2,846,810

91,845,289

Energy

Equipment

Services

1.5%

SLB

Ltd.

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

United

States

2,833,602

131,734,157

Entertainment

2.3%

Walt

Disney

Co.

(The)

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

United

States

1,487,531

143,174,859

Warner

Bros

Discovery,

Inc.

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

United

States

2,436,007

64,943,946

208,118,805

Financial

Services

1.3%

Fiserv,

Inc.

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

United

States

2,436,921

119,530,975

Food

Products

3.2%

Danone

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

France

1,941,405

158,687,201

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Global

Discovery

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Food

Products

(continued)

Mondelez

International,

Inc.

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

United

States

2,296,604

132,835,575

291,522,776

Ground

Transportation

1.7%

Union

Pacific

Corp.

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

United

States

560,610

152,485,920

Health

Care

Equipment

Supplies

3.7%

Abbott

Laboratories

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

United

States

2,041,567

185,251,790

Medtronic

plc

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

United

States

1,856,578

145,240,097

330,491,887

Health

Care

Providers

Services

3.7%

CVS

Health

Corp.

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

United

States

1,448,668

149,864,705

Elevance

Health,

Inc.

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

United

States

476,783

184,386,289

334,250,994

Household

Products

1.9%

Reckitt

Benckiser

Group

plc

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

United

Kingdom

2,657,488

173,091,748

Industrial

Conglomerates

1.1%

Siemens

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

Germany

310,294

99,761,787

Insurance

3.8%

Arthur

Gallagher

Co.

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

United

States

825,995

189,623,672

Prudential

plc

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

Hong

Kong

11,658,892

154,853,599

344,477,271

Interactive

Media

Services

4.5%

Alphabet,

Inc.

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

United

States

405,163

144,793,101

Meta

Platforms,

Inc.

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

United

States

222,238

125,184,443

Tencent

Holdings

Ltd.

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

China

2,490,104

137,410,310

407,387,854

Media

0.9%

Charter

Communications,

Inc.

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

United

States

577,623

82,143,767

Multi-Utilities

0.2%

National

Grid

plc

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

United

Kingdom

1,172,664

19,341,603

Oil,

Gas

Consumable

Fuels

5.9%

plc

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

United

States

27,766,456

171,145,400

EOG

Resources,

Inc.

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

United

States

1,559,330

202,291,881

Shell

plc

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

United

States

4,156,483

161,500,114

534,937,395

Pharmaceuticals

8.6%

Haleon

plc

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

United

States

30,336,015

139,792,826

Merck

Co.,

Inc.

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

United

States

1,856,906

238,612,421

Novartis

ADR

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

United

States

1,192,174

186,837,509

Roche

Holding

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

United

States

512,706

210,766,454

776,009,210

Professional

Services

1.4%

RELX

plc

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

United

Kingdom

3,847,648

121,604,239

Semiconductors

Semiconductor

Equipment

1.7%

Renesas

Electronics

Corp.

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

Japan

4,864,550

150,163,071

Software

5.4%

Intuit,

Inc.

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

United

States

364,893

95,237,073

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Global

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Country

Value

Common

Stocks

(continued)

Software

(continued)

Microsoft

Corp.

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

United

States

717,984

267,822,392

Salesforce,

Inc.

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

United

States

759,676

119,010,842

482,070,307

Technology

Hardware,

Storage

Peripherals

1.4%

Samsung

Electronics

Co.

Ltd.

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

South

Korea

572,287

126,988,907

Tobacco

2.2%

British

American

Tobacco

plc

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

United

Kingdom

3,205,527

198,367,536

Trading

Companies

Distributors

3.5%

AerCap

Holdings

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

Ireland

1,294,730

188,745,739

Ferguson

Enterprises,

Inc.

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

United

States

545,947

129,569,602

318,315,341

Water

Utilities

1.3%

United

Utilities

Group

plc

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

United

Kingdom

6,593,061

114,402,966

Total

Common

Stocks

(Cost

6,791,476,629

)

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

8,704,801,523

Principal

Amount

Corporate

Bonds

0.5%

Commercial

Services

Supplies

0.5%

Neptune

Bidco

US,

Inc.

Senior

Secured

Note

144A,

10.375

5/15/31

...........

United

States

20,484,000

21,246,517

Senior

Secured

Note

144A,

9.5

2/15/33

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

United

States

18,920,000

19,152,848

40,399,365

Total

Corporate

Bonds

(Cost

39,165,245

)

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

40,399,365

Senior

Floating

Rate

Interests

1.3%

Commercial

Services

Supplies

0.9%

Neptune

Bidco

US,

Inc.,

First

Lien,

2026

Dollar

CME

Term

Loan,

8.769

(

3-month

SOFR

2/03/33

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

United

States

82,109,538

81,556,120

Professional

Services

0.4%

CoreLogic,

Inc.,

First

Lien,

Initial

CME

Term

Loan

7.258

(

1-month

SOFR

3.5

6/02/28

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

United

States

39,521,392

39,126,178

Total

Senior

Floating

Rate

Interests

(Cost

119,406,103

)

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

120,682,298

Companies

Liquidation

0.0%

†

a,f,g

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

....

United

States

30,996,000

Total

Companies

Liquidation

(Cost

–

)

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

Total

Long

Term

Investments

(Cost

6,950,047,977

)

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

8,865,883,217

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Global

Discovery

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Short

Term

Investments

1.2%

Country

Principal

Amount

Value

U.S.

Government

and

Agency

Securities

0.1%

U.S.

Treasury

Bills

.44

7/23/26

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

United

States

10,000,000

9,978,102

Total

U.S.

Government

and

Agency

Securities

(Cost

9,978,489

)

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

9,978,102

Money

Market

Funds

1.1%

i,j

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.597

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

United

States

98,839,563

Total

Money

Market

Funds

(Cost

98,839,563

)

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

98,839,563

Total

Short

Term

Investments

(Cost

108,818,052

)

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

108,817,665

Total

Investments

(Cost

7,058,866,029

)

99.6

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

$8,974,700,882

Other

Assets,

less

Liabilities

0.4

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

34,744,906

Net

Assets

100.0%

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

$9,009,445,788

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

less

than

0.1%

net

assets.

Non-income

producing.

Variable

interest

entity

(VIE).

See

Note

regarding

investments

made

through

VIE

structure.

June

30,

2026,

the

value

this

security

was

$137,410,310,

representing

1.5%

net

assets.

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

June

30,

2026,

the

aggregate

value

these

securities

was

$40,399,365,

representing

0.4%

net

assets.

See

Note

1(e)

regarding

senior

floating

rate

interests.

The

coupon

rate

shown

represents

the

rate

inclusive

any

caps

floors,

applicable,

effect

period

end.

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

Contingent

distributions

represent

the

right

receive

additional

distributions,

any,

during

the

reorganization

the

underlying

company.

represent

total

underlying

principal

debt

securities.

The

rate

shown

represents

the

yield

period

end.

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

International

Value

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$32.74

$24.13

$23.97

$21.07

$21.91

$19.49

Income

from

investment

operations

Net

investment

income

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

0.47

0.65

0.53

0.50

0.60

0.58

Net

realized

and

unrealized

gains

(losses)

0.18

8.97

0.37

2.94

(0.74)

2.61

Total

from

investment

operations

........

0.65

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

period

..........

$33.39

$32.74

$24.13

$23.97

$21.07

$21.91

Total

return

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

1.99%

39.94%

3.67%

16.49%

(0.51)%

16.49%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.00%

0.99%

0.97%

1.00%

1.07%

Expenses

net

waiver

and

payments

affiliates

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

0.95%

0.96%

0.95%

0.97%

f,g

1.00%

f,g

1.07%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

—%

Net

investment

income

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

2.81%

2.18%

2.09%

2.23%

2.87%

2.71%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$697,531

$786,654

$465,449

$480,409

$414,151

$457,644

Portfolio

turnover

rate

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

23.86%

51.25%

42.06%

58.49%

32.10%

32.03%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

expense

reduction

rounds

less

than

0.01%.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

International

Value

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$31.60

$23.32

$23.19

$20.41

$21.24

$18.91

Income

from

investment

operations

Net

investment

income

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

0.42

0.57

0.45

0.44

0.53

0.51

Net

realized

and

unrealized

gains

(losses)

0.16

8.66

0.36

2.82

(0.72)

2.54

Total

from

investment

operations

........

0.58

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

period

..........

$32.18

$31.60

$23.32

$23.19

$20.41

$21.24

Total

return

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

1.87%

39.63%

3.40%

16.16%

(0.73)%

16.23%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.25%

1.24%

1.22%

1.25%

1.32%

Expenses

net

waiver

and

payments

affiliates

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

1.20%

1.21%

1.20%

1.22%

f,g

1.25%

f,g

1.32%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

—%

Net

investment

income

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

2.64%

2.01%

1.84%

1.99%

2.60%

2.45%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$421,106

$401,409

$277,513

$287,258

$256,163

$281,685

Portfolio

turnover

rate

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

23.86%

51.25%

42.06%

58.49%

32.10%

32.03%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

expense

reduction

rounds

less

than

0.01%.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

International

Value

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$32.39

$23.91

$23.72

$20.83

$21.60

$19.17

Income

from

investment

operations

Net

investment

income

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

0.30

0.37

0.28

0.30

0.39

0.38

Net

realized

and

unrealized

gains

(losses)

0.18

8.84

0.36

2.85

(0.73)

2.54

Total

from

investment

operations

........

0.48

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

period

..........

$32.87

$32.39

$23.91

$23.72

$20.83

$21.60

Total

return

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

1.48%

38.60%

2.62%

15.24%

(1.42)%

15.32%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

2.00%

1.99%

1.97%

2.00%

2.07%

Expenses

net

waiver

and

payments

affiliates

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

1.95%

1.96%

1.95%

1.97%

f,g

2.00%

f,g

2.07%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

—%

Net

investment

income

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

1.83%

1.26%

1.12%

1.35%

1.91%

1.83%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$8,078

$8,350

$6,284

$8,769

$15,190

$24,236

Portfolio

turnover

rate

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

23.86%

51.25%

42.06%

58.49%

32.10%

32.03%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

expense

reduction

rounds

less

than

0.01%.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

International

Value

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$30.64

$22.68

$22.61

$19.90

$20.75

$18.49

Income

from

investment

operations

Net

investment

income

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

0.38

0.46

0.31

0.34

0.44

0.45

Net

realized

and

unrealized

gains

(losses)

0.15

8.44

0.42

2.79

(0.68)

2.48

Total

from

investment

operations

........

0.53

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

period

..........

$31.17

$30.64

$22.68

$22.61

$19.90

$20.75

Total

return

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

1.73%

39.30%

3.16%

15.88%

(1.03)%

15.96%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.50%

1.49%

1.47%

1.49%

1.58%

Expenses

net

waiver

and

payments

affiliates

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

1.45%

1.46%

1.45%

1.47%

f,g

1.49%

f,g

1.58%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

—%

Net

investment

income

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

2.43%

1.65%

1.32%

1.58%

2.23%

2.21%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$9,395

$6,983

$1,707

$783

$623

$639

Portfolio

turnover

rate

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

23.86%

51.25%

42.06%

58.49%

32.10%

32.03%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

expense

reduction

rounds

less

than

0.01%.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

International

Value

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$32.73

$24.11

$23.95

$21.05

$21.88

$19.47

Income

from

investment

operations

Net

investment

income

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

0.49

0.68

0.49

0.63

0.62

0.60

Net

realized

and

unrealized

gains

(losses)

0.17

8.97

0.42

2.81

(0.73)

2.60

Total

from

investment

operations

........

0.66

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

period

..........

$33.39

$32.73

$24.11

$23.95

$21.05

$21.88

Total

return

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

2.02%

40.11%

3.74%

16.53%

(0.38)%

16.56%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

0.91%

0.92%

0.93%

0.92%

1.02%

Expenses

net

waiver

and

payments

affiliates

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

0.87%

0.90%

0.91%

0.99%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.01%

—%

Net

investment

income

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

2.95%

2.31%

1.96%

2.78%

2.96%

2.78%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$42,164

$44,032

$22,723

$9,950

$33,306

$35,798

Portfolio

turnover

rate

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

23.86%

51.25%

42.06%

58.49%

32.10%

32.03%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

expense

reduction

rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited),

June

30,

2026

Franklin

Mutual

International

Value

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Country

Value

Common

Stocks

98.7%

Aerospace

Defense

3.5%

Airbus

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

France

114,336

25,438,827

Babcock

International

Group

plc

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

United

Kingdom

1,292,371

16,334,152

41,772,979

Automobiles

3.3%

Mercedes-Benz

Group

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

Germany

399,062

20,072,299

Toyota

Motor

Corp.

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

Japan

1,124,239

18,833,821

38,906,120

Banks

20.4%

BNP

Paribas

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

France

229,923

26,853,433

CaixaBank

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

Spain

2,033,660

28,813,238

DBS

Group

Holdings

Ltd.

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

Singapore

461,510

23,368,467

HSBC

Holdings

plc

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

United

Kingdom

2,018,165

38,162,077

Mitsubishi

UFJ

Financial

Group,

Inc.

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

Japan

1,523,617

30,354,922

Mizuho

Financial

Group,

Inc.

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

Japan

473,769

22,754,561

NatWest

Group

plc

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

United

Kingdom

3,713,610

32,768,723

UniCredit

SpA

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

Italy

419,611

37,605,019

240,680,440

Beverages

3.7%

Asahi

Group

Holdings

Ltd.

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

Japan

981,926

9,334,838

Coca-Cola

Bottlers

Japan

Holdings,

Inc.

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

Japan

1,307,992

34,523,584

43,858,422

Broadline

Retail

2.1%

Pan

Pacific

International

Holdings

Corp.

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

Japan

4,769,916

24,176,525

Building

Products

2.1%

Cie

Saint-Gobain

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

France

270,588

24,537,566

Capital

Markets

6.1%

Deutsche

Bank

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

Germany

685,792

23,225,719

SBI

Holdings,

Inc.

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

Japan

1,230,960

20,186,258

St.

James's

Place

plc

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

United

Kingdom

1,748,520

28,113,692

71,525,669

Chemicals

1.0%

BASF

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

Germany

219,507

11,733,328

Consumer

Staples

Distribution

Retail

1.9%

Zabka

Group

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

Poland

3,035,880

21,986,114

Diversified

Telecommunication

Services

5.0%

Deutsche

Telekom

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

Germany

819,713

22,348,899

Hellenic

Telecommunications

Organization

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

Greece

1,141,195

25,341,219

Koninklijke

KPN

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

Netherlands

2,233,147

11,029,019

58,719,137

Electric

Utilities

1.9%

SSE

plc

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

United

Kingdom

709,195

22,880,424

Food

Products

2.0%

Danone

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

France

284,133

23,224,557

Health

Care

Equipment

Supplies

1.6%

Olympus

Corp.

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

Japan

1,838,694

19,253,310

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

International

Value

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Household

Durables

1.6%

Sony

Group

Corp.

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

Japan

934,338

18,802,678

Household

Products

1.6%

Reckitt

Benckiser

Group

plc

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

United

Kingdom

298,188

19,422,057

Insurance

8.7%

Allianz

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

Germany

65,104

30,816,852

ASR

Nederland

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

Netherlands

350,645

26,481,018

Aviva

plc

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

United

Kingdom

3,113,166

26,841,067

Prudential

plc

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

Hong

Kong

1,367,194

18,159,094

102,298,031

Interactive

Media

Services

2.1%

Tencent

Holdings

Ltd.

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

China

448,924

24,772,775

Machinery

4.4%

CNH

Industrial

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

United

States

1,230,926

13,823,299

Metso

OYJ

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

Finland

1,159,529

20,163,070

RENK

Group

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

Germany

359,198

17,339,061

51,325,430

Metals

Mining

2.0%

ArcelorMittal

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

Luxembourg

181,139

10,921,423

Norsk

Hydro

ASA

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

Norway

1,339,173

12,117,887

23,039,310

Oil,

Gas

Consumable

Fuels

5.4%

plc

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

United

States

5,465,424

33,687,489

Shell

plc

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

United

States

772,306

30,007,943

63,695,432

Paper

Forest

Products

1.3%

Mondi

plc

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

Austria

1,703,395

15,464,577

Personal

Care

Products

1.6%

Unilever

plc

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

United

Kingdom

310,784

18,668,052

Pharmaceuticals

6.2%

Novartis

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

United

States

185,236

28,950,982

Roche

Holding

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

United

States

106,933

43,958,700

72,909,682

Professional

Services

2.0%

RELX

plc

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

United

Kingdom

759,653

24,008,700

Semiconductors

Semiconductor

Equipment

1.7%

NXP

Semiconductors

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

Netherlands

70,865

19,915,191

Tobacco

2.3%

British

American

Tobacco

plc

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

United

Kingdom

443,029

27,415,951

Trading

Companies

Distributors

1.7%

AerCap

Holdings

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

Ireland

134,899

19,665,576

Water

Utilities

1.5%

United

Utilities

Group

plc

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

United

Kingdom

1,036,405

17,983,727

Total

Common

Stocks

(Cost

934,047,363

)

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

1,162,641,760

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

International

Value

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

See

Abbreviations

page

Short

Term

Investments

1.6%

Country

Value

Money

Market

Funds

1.6%

c,d

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.597

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

United

States

18,857,540

Total

Money

Market

Funds

(Cost

18,857,540

)

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

18,857,540

Total

Short

Term

Investments

(Cost

18,857,540

)

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

18,857,540

Total

Investments

(Cost

952,904,903

)

100.3

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

$1,181,499,300

Other

Assets,

less

Liabilities

(

0.3

)

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

(3,224,908)

Net

Assets

100.0%

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

$1,178,274,392

Non-income

producing.

Variable

interest

entity

(VIE).

See

Note

regarding

investments

made

through

VIE

structure.

June

30,

2026,

the

value

this

security

was

$24,772,775,

representing

2.1%

net

assets.

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Quest

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$16.00

$14.17

$13.68

$12.96

$14.46

$13.31

Income

from

investment

operations

Net

investment

income

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

0.29

0.51

0.58

0.57

0.50

0.23

Net

realized

and

unrealized

gains

(losses)

0.77

1.99

0.63

0.78

(1.51)

1.29

Total

from

investment

operations

........

1.06

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

period

..........

$17.06

$16.00

$14.17

$13.68

$12.96

$14.46

Total

return

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

6.63%

17.64%

8.80%

10.51%

(6.86)%

11.51%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

0.77%

0.80%

0.78%

0.87%

Expenses

net

waiver

and

payments

affiliates

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

0.76%

0.77%

0.80%

f,g

0.78%

f,g

0.87%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

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

3.55%

3.35%

3.97%

4.31%

3.60%

1.59%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$2,099,487

$2,075,099

$1,960,398

$2,026,136

$2,047,788

$2,397,948

Portfolio

turnover

rate

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

30.05%

50.37%

48.47%

96.06%

101.19%

66.95%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$15.68

$13.90

$13.44

$12.74

$14.22

$13.09

Income

from

investment

operations

Net

investment

income

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

0.27

0.47

0.53

0.46

0.19

Net

realized

and

unrealized

gains

(losses)

0.75

1.94

0.61

0.77

(1.48)

1.28

Total

from

investment

operations

........

1.02

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

period

..........

$16.70

$15.68

$13.90

$13.44

$12.74

$14.22

Total

return

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

6.44%

17.34%

8.61%

10.26%

(7.16)%

11.26%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.02%

1.05%

1.03%

1.12%

Expenses

net

waiver

and

payments

affiliates

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

1.01%

1.02%

1.05%

f,g

1.03%

f,g

1.12%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

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

3.30%

3.11%

3.73%

4.06%

3.35%

1.34%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$575,057

$570,722

$549,338

$584,271

$617,190

$723,791

Portfolio

turnover

rate

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

30.05%

50.37%

48.47%

96.06%

101.19%

66.95%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$15.67

$13.89

$13.41

$12.71

$14.17

$13.01

Income

from

investment

operations

Net

investment

income

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

0.21

0.35

0.42

0.43

0.35

0.08

Net

realized

and

unrealized

gains

(losses)

0.75

1.94

0.62

0.75

(1.47)

1.27

Total

from

investment

operations

........

0.96

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

period

..........

$16.63

$15.67

$13.89

$13.41

$12.71

$14.17

Total

return

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

6.06%

16.47%

7.77%

9.47%

(7.88)%

10.42%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.77%

1.76%

1.80%

1.78%

1.87%

Expenses

net

waiver

and

payments

affiliates

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

1.76%

1.77%

1.76%

1.80%

f,g

1.78%

f,g

1.87%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

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

2.55%

2.37%

2.99%

3.30%

2.57%

0.55%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$19,332

$20,236

$22,775

$27,863

$33,039

$44,228

Portfolio

turnover

rate

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

30.05%

50.37%

48.47%

96.06%

101.19%

66.95%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$15.37

$13.64

$13.20

$12.52

$13.98

$12.87

Income

from

investment

operations

Net

investment

income

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

0.24

0.44

0.49

0.45

0.15

Net

realized

and

unrealized

gains

(losses)

0.74

1.88

0.60

0.75

(1.49)

1.27

Total

from

investment

operations

........

0.98

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

period

..........

$16.35

$15.37

$13.64

$13.20

$12.52

$13.98

Total

return

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

6.38%

17.05%

8.27%

10.01%

(7.44)%

11.05%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.27%

1.28%

1.27%

1.30%

1.27%

1.37%

Expenses

net

waiver

and

payments

affiliates

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

1.26%

1.28%

1.27%

1.30%

f,g

1.27%

f,g

1.37%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

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

3.02%

3.00%

3.48%

3.81%

3.39%

1.10%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$3,261

$3,586

$2,700

$2,742

$3,725

$2,643

Portfolio

turnover

rate

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

30.05%

50.37%

48.47%

96.06%

101.19%

66.95%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$15.97

$14.15

$13.66

$12.95

$14.45

$13.29

Income

from

investment

operations

Net

investment

income

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

0.30

0.52

0.58

0.57

0.51

0.23

Net

realized

and

unrealized

gains

(losses)

0.77

1.98

0.64

0.78

(1.51)

1.31

Total

from

investment

operations

........

1.07

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

period

..........

$17.04

$15.97

$14.15

$13.66

$12.95

$14.45

Total

return

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

6.63%

17.71%

8.86%

10.57%

(6.88)%

11.67%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

0.76%

0.77%

0.75%

0.79%

0.76%

0.87%

Expenses

net

waiver

and

payments

affiliates

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

0.72%

0.73%

0.72%

0.75%

0.72%

0.82%

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

—%

0.03%

0.02%

0.06%

Net

investment

income

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

3.59%

3.39%

4.02%

4.35%

3.65%

1.63%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$29,149

$30,507

$29,269

$30,994

$32,109

$39,292

Portfolio

turnover

rate

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

30.05%

50.37%

48.47%

96.06%

101.19%

66.95%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited),

June

30,

2026

Franklin

Mutual

Quest

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Country

Value

Common

Stocks

79.7%

Aerospace

Defense

1.2%

Airbus

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

France

142,905

31,795,196

Automobile

Components

1.1%

Aptiv

plc

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

United

States

468,791

28,774,392

Automobiles

0.9%

Mercedes-Benz

Group

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

Germany

460,445

23,159,784

Banks

8.1%

BNP

Paribas

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

France

407,891

47,638,879

Mitsubishi

UFJ

Financial

Group,

Inc.

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

Japan

2,170,776

43,248,228

PNC

Financial

Services

Group,

Inc.

(The)

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

United

States

195,929

48,241,639

UniCredit

SpA

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

Italy

446,381

40,004,113

Wells

Fargo

Co.

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

United

States

518,402

42,840,741

221,973,600

Beverages

1.3%

Heineken

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

Netherlands

426,263

35,790,149

Building

Products

1.3%

Johnson

Controls

International

plc

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

United

States

250,596

36,614,582

Capital

Markets

0.4%

Ares

Capital

Corp.

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

United

States

532,391

9,865,205

Chemicals

1.1%

PPG

Industries,

Inc.

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

United

States

242,308

29,389,537

Communications

Equipment

3.2%

Cisco

Systems,

Inc.

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

United

States

420,943

49,443,965

a,b,c,d

Inclusive

Language

Services

LLC,

Membership

Interests,

....

United

States

106,532

37,315,907

86,759,872

Consumer

Staples

Distribution

Retail

1.2%

Dollar

General

Corp.

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

United

States

279,126

32,130,194

Containers

Packaging

0.8%

International

Paper

Co.

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

United

States

577,142

21,989,110

Diversified

Telecommunication

Services

1.8%

Deutsche

Telekom

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

Germany

1,058,061

28,847,290

Uniti

Group,

Inc.

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

United

States

1,714,983

19,670,855

48,518,145

Electric

Utilities

4.0%

Entergy

Corp.

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

United

States

314,304

36,100,958

Evergy,

Inc.

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

United

States

382,452

33,055,326

PPL

Corp.

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

United

States

1,082,445

39,346,876

108,503,160

Energy

Equipment

Services

2.1%

Baker

Hughes

Co.,

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

United

States

435,218

24,154,599

SLB

Ltd.

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

United

States

726,053

33,754,204

57,908,803

Entertainment

4.4%

Electronic

Arts,

Inc.

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

United

States

184,329

37,794,818

Walt

Disney

Co.

(The)

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

United

States

372,943

35,895,764

Warner

Bros

Discovery,

Inc.

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

United

States

1,695,406

45,199,524

118,890,106

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Financial

Services

1.2%

Mastercard,

Inc.,

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

United

States

27,435

14,090,616

Voya

Financial,

Inc.

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

United

States

197,850

17,911,361

32,001,977

Food

Products

1.5%

Danone

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

France

488,610

39,938,165

Ground

Transportation

0.8%

Union

Pacific

Corp.

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

United

States

82,885

22,544,720

Health

Care

Equipment

Supplies

2.6%

Abbott

Laboratories

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

United

States

338,138

30,682,642

Cooper

Cos.,

Inc.

(The)

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

United

States

562,935

40,368,069

71,050,711

Health

Care

Providers

Services

2.3%

Elevance

Health,

Inc.

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

United

States

87,042

33,661,753

Fresenius

Co.

KGaA

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

Germany

655,657

29,954,650

63,616,403

Household

Products

1.6%

Colgate-Palmolive

Co.

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

United

States

271,930

24,930,542

Reckitt

Benckiser

Group

plc

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

United

Kingdom

303,622

19,775,993

44,706,535

Insurance

7.8%

Arthur

Gallagher

Co.

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

United

States

199,867

45,883,467

ASR

Nederland

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

Netherlands

399,843

30,196,494

Brighthouse

Financial,

Inc.

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

United

States

491,408

31,106,127

Hartford

Insurance

Group,

Inc.

(The)

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

United

States

256,827

34,034,714

Progressive

Corp.

(The)

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

United

States

188,344

41,143,747

Prudential

plc

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

Hong

Kong

2,350,343

31,217,295

213,581,844

Interactive

Media

Services

2.8%

Alphabet,

Inc.,

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

United

States

146,283

52,277,156

Meta

Platforms,

Inc.,

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

United

States

41,673

23,473,984

75,751,140

Machinery

4.7%

CNH

Industrial

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

United

States

2,925,281

32,850,906

Dover

Corp.

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

United

States

155,317

34,834,497

Ingersoll

Rand,

Inc.

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

United

States

394,944

32,381,458

RENK

Group

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

Germany

554,870

26,784,461

126,851,322

Media

0.3%

EchoStar

Corp.,

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

United

States

84,240

8,550,360

Metals

Mining

3.6%

Agnico

Eagle

Mines

Ltd.

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

Canada

168,935

26,206,886

Allied

Gold

Corp.

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

Canada

139,636

3,317,986

ArcelorMittal

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

Luxembourg

707,342

42,647,808

Equinox

Gold

Corp.

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

Canada

2,773,202

27,023,199

99,195,879

Oil,

Gas

Consumable

Fuels

3.3%

plc

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

United

States

6,722,163

41,433,709

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Country

Value

Common

Stocks

(continued)

Oil,

Gas

Consumable

Fuels

(continued)

EOG

Resources,

Inc.

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

United

States

382,323

49,598,763

91,032,472

Pharmaceuticals

4.6%

Merck

Co.,

Inc.

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

United

States

269,292

34,604,022

Novartis

AG,

ADR

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

United

States

292,937

45,909,087

Roche

Holding

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

United

States

110,938

45,605,101

126,118,210

Professional

Services

0.9%

Intertek

Group

plc

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

United

Kingdom

326,120

25,104,088

Semiconductors

Semiconductor

Equipment

1.2%

Micron

Technology,

Inc.

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

United

States

28,060

32,389,377

Software

2.7%

Adobe,

Inc.

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

United

States

131,791

27,019,791

Microsoft

Corp.

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

United

States

121,028

45,145,864

72,165,655

Specialty

Retail

0.8%

Gap,

Inc.

(The)

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

United

States

1,160,915

21,685,892

Technology

Hardware,

Storage

Peripherals

1.9%

Samsung

Electronics

Co.

Ltd.

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

South

Korea

239,133

53,062,953

Tobacco

1.2%

British

American

Tobacco

plc

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

United

Kingdom

532,814

32,972,114

Trading

Companies

Distributors

1.0%

United

Rentals,

Inc.

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

United

States

24,891

28,198,765

Total

Common

Stocks

(Cost

$1,720,901,128)

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

2,172,580,417

Preferred

Stocks

1.7%

Diversified

Telecommunication

Services

0.4%

a,b,c

Uniti

Group,

Inc.

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

United

States

10,941

11,758,892

Technology

Hardware,

Storage

Peripherals

1.3%

Samsung

Electronics

Co.

Ltd.,

0.6%

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

South

Korea

238,730

33,666,266

Total

Preferred

Stocks

(Cost

$23,266,437)

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

45,425,158

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

3,301,615

Total

Warrants

(Cost

$1,603,618)

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

3,301,615

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Convertible

Bonds

0.5%

Automobiles

0.3%

Lucid

Group,

Inc.

Senior

Note

144A,

1.25

12/15/26

.......

United

States

7,500,000

7,181,250

Software

0.2%

g,h

Zscaler,

Inc.

Senior

Note

144A,

3.89%

7/15/28

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

United

States

7,500,000

6,937,500

Total

Convertible

Bonds

(Cost

$14,303,641)

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

14,118,750

Corporate

Bonds

5.4%

Building

Products

0.3%

Wilsonart

LLC

Senior

Note

144A,

8/15/32

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

United

States

10,000,000

8,114,839

Commercial

Services

Supplies

1.5%

Neptune

Bidco

US,

Inc.

Senior

Secured

Note,

144A,

10.375%,

5/15/31

...........

United

States

34,440,400

35,722,444

Senior

Secured

Note,

144A,

9.5%,

2/15/33

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

United

States

6,231,000

6,307,685

42,030,129

Media

2.4%

DISH

Network

Corp.

Senior

Secured

Note

144A,

11.75

11/15/27

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

United

States

37,000,000

38,045,139

iHeartCommunications,

Inc.

Secured

Note,

144A,

10.875%,

5/01/30

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

United

States

15,000,000

13,042,500

Senior

Secured

Note,

144A,

9.125%,

5/01/29

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

United

States

2,000,000

1,942,360

Senior

Secured

Note,

144A,

7.75%,

8/15/30

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

United

States

12,000,000

11,204,820

64,234,819

Specialty

Retail

1.2%

Staples,

Inc.

Secured

Note,

144A,

12.75%,

1/15/30

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

United

States

29,000,000

22,236,371

Senior

Secured

Note,

144A,

10.75%,

9/01/29

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

United

States

10,000,000

9,547,581

31,783,952

Total

Corporate

Bonds

(Cost

$145,194,982)

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

146,163,739

Senior

Floating

Rate

Interests

9.3%

Commercial

Services

Supplies

3.1%

Neptune

Bidco

US,

Inc.,

First

Lien,

2026

Dollar

CME

Term

Loan,

8.769%,

(3-month

SOFR

5%),

2/03/33

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

United

States

85,000,000

84,427,100

Financial

Services

0.8%

j,k

Travelport

Finance

Luxembourg

SARL,

First

Lien,

Priority

CME

Term

Loan,

PIK,

9.394%,

(3-month

SOFR

5.441%),

9/29/28

Luxembourg

29,060,906

21,701,232

Media

0.1%

j,l

Loyalty

Ventures,

Inc.,

First

Lien,

Term

Loan,

12.25%,

(PRIME

5.5%),

11/03/27

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

United

States

26,135,994

2,874,959

Professional

Services

0.3%

CoreLogic,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

7.258%,

(1-month

SOFR

3.5%),

6/02/28

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

United

States

7,484,275

7,409,432

Specialty

Retail

0.3%

Staples,

Inc.,

First

Lien,

Closing

Date

CME

Term

Loan,

9.413%,

(3-month

SOFR

5.75%),

9/04/29

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

United

States

9,787,690

9,117,820

Wireless

Telecommunication

Services

4.7%

b,d,k

Sorenson

Holdings

LLC,

First

Lien,

Term

Loan,

PIK,

10%,

4/01/30

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

United

States

15,312,651

14,904,187

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

See

Abbreviations

page

Country

Principal

Amount

Value

Senior

Floating

Rate

Interests

(continued)

Wireless

Telecommunication

Services

(continued)

b,d,k

Sorenson

Holdings

LLC,

First

Lien,

Term

Loan,

PIK,

8%,

4/01/30

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

United

States

132,595,770

114,002,594

128,906,781

Total

Senior

Floating

Rate

Interests

(Cost

$294,713,435)

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

254,437,324

Companies

Liquidation

0.0%

†

a,b,m

Bosgen

Liquidating

Trust

c/o

Verdolino

and

Lowey

P.C.,

Contingent

Distribution

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

Netherlands

159,828

—

a,b,m

Walter

Energy,

Inc.,

Litigation

Trust,

Contingent

Distribution

....

United

States

7,443,000

Total

Companies

Liquidation

(Cost

$–)

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

Total

Long

Term

Investments

(Cost

$2,199,983,241)

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

2,637,683,714

Short

Term

Investments

2.0%

Country

Value

Money

Market

Funds

2.0%

n,o

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.597%

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

United

States

53,755,440

Total

Money

Market

Funds

(Cost

$53,755,440)

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

53,755,440

Total

Short

Term

Investments

(Cost

$53,755,440

)

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

53,755,440

Total

Investments

(Cost

$2,253,738,681)

98.8%

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

$2,691,439,154

Options

Written

(0.0)%

†

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

(14,800)

Other

Assets,

less

Liabilities

1.2%

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

34,862,560

Net

Assets

100.0%

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

$2,726,286,914

Number

Contracts

Notional

Amount

Options

Written

(0.0)%

†

Puts

Exchange-Traded

Equity

Options

(0.0)%

†

Warner

Bros

Discovery,

Inc.,

July

Strike

Price

$25.00,

Expires

7/17/26

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

400

1,066,400

(14,800)

Total

Options

Written

(Premiums

received

$19,590)

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

(14,800)

Notional

amount

the

number

contracts

multiplied

contract

size,

and

may

multiplied

the

underlying

price.

May

include

currency

units,

bushels,

shares,

pounds,

barrels

other

units.

Currency

units

are

stated

U.S.

dollars

unless

otherwise

indicated.

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

less

than

0.1%

net

assets.

Non-income

producing.

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Quest

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

See

Note

regarding

restricted

securities.

See

Note

regarding

holdings

voting

securities.

portion

all

the

security

has

been

segregated

collateral

for

certain

derivative

contracts.

June

30,

2026,

the

aggregate

value

these

securities

pledged

amounted

$1,462,965,

representing

0.1%

net

assets.

Variable

rate

security.

The

rate

shown

represents

the

yield

period

end.

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

June

30,

2026,

the

aggregate

value

these

securities

was

$160,282,489,

representing

5.9%

net

assets.

The

rate

shown

represents

the

yield

period

end.

See

Note

1(e)

regarding

senior

floating

rate

interests.

The

coupon

rate

shown

represents

the

rate

inclusive

any

caps

floors,

applicable,

effect

period

end.

Income

may

received

additional

securities

and/or

cash.

Defaulted

security

for

which

income

has

been

deemed

uncollectible.

See

Note

Contingent

distributions

represent

the

right

receive

additional

distributions,

any,

during

the

reorganization

the

underlying

company.

represent

total

underlying

principal

debt

securities.

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

See

Note

1(c)

regarding

written

options.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$25.89

$24.93

$24.53

$22.86

$27.09

$25.33

Income

from

investment

operations

Net

investment

income

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

0.25

0.48

0.55

0.51

0.43

0.39

Net

realized

and

unrealized

gains

(losses)

0.93

2.45

2.27

2.61

(2.45)

4.43

Total

from

investment

operations

........

1.18

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

period

..........

$27.07

$25.89

$24.93

$24.53

$22.86

$27.09

Total

return

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

4.56%

11.77%

11.51%

13.93%

(7.11)%

19.34%

Ratios

average

net

assets

Expenses

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

0.76%

0.74%

0.75%

f,g

0.75%

0.81%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

1.87%

1.86%

2.07%

2.16%

1.70%

1.36%

Supplemental

data

Net

assets

end

period

(000’s)

........

$3,988,415

$3,985,726

$3,946,804

$3,894,722

$3,785,598

$4,717,528

Portfolio

turnover

rate

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

30.49%

51.72%

33.08%

35.16%

59.69%

41.18%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$25.42

$24.52

$24.16

$22.54

$26.75

$25.04

Income

from

investment

operations

Net

investment

income

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

0.21

0.41

0.47

0.45

0.36

0.31

Net

realized

and

unrealized

gains

(losses)

0.92

2.39

2.24

2.57

(2.42)

4.39

Total

from

investment

operations

........

1.13

2.80

2.71

3.02

(2.06)

4.70

Less

distributions

from:

Net

investment

income

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

—

(0.41)

(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

period

..........

$26.55

$25.42

$24.52

$24.16

$22.54

$26.75

Total

return

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

4.45%

11.46%

11.23%

13.64%

(7.35)%

19.07%

Ratios

average

net

assets

Expenses

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

1.01%

0.99%

1.00%

f,g

1.00%

1.06%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

1.62%

1.61%

1.83%

1.91%

1.45%

1.11%

Supplemental

data

Net

assets

end

period

(000’s)

........

$2,588,118

$2,637,042

$2,688,933

$2,726,473

$2,601,790

$3,125,320

Portfolio

turnover

rate

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

30.49%

51.72%

33.08%

35.16%

59.69%

41.18%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$25.80

$24.86

$24.43

$22.55

$26.75

$25.02

Income

from

investment

operations

Net

investment

income

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

0.12

0.22

0.28

0.26

0.17

0.10

Net

realized

and

unrealized

gains

(losses)

0.93

2.41

2.26

2.59

(2.41)

4.37

Total

from

investment

operations

........

1.05

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

period

..........

$26.85

$25.80

$24.86

$24.43

$22.55

$26.75

Total

return

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

4.07%

10.61%

10.42%

12.85%

(8.04)%

18.13%

Ratios

average

net

assets

Expenses

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

1.76%

1.74%

1.75%

f,g

1.75%

1.81%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

0.88%

0.87%

1.08%

1.10%

0.69%

0.35%

Supplemental

data

Net

assets

end

period

(000’s)

........

$28,429

$31,254

$37,704

$47,522

$158,150

$192,660

Portfolio

turnover

rate

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

30.49%

51.72%

33.08%

35.16%

59.69%

41.18%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable,

and

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$25.30

$24.42

$24.06

$22.45

$26.65

$24.96

Income

from

investment

operations

Net

investment

income

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

0.18

0.34

0.41

0.39

0.29

0.24

Net

realized

and

unrealized

gains

(losses)

0.91

2.38

2.23

2.55

(2.40)

4.36

Total

from

investment

operations

........

1.09

2.72

2.64

2.94

(2.11)

4.60

Less

distributions

from:

Net

investment

income

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

—

(0.35)

(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

period

..........

$26.39

$25.30

$24.42

$24.06

$22.45

$26.65

Total

return

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

4.31%

11.16%

10.99%

13.36%

(7.60)%

18.75%

Ratios

average

net

assets

Expenses

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

1.26%

1.24%

1.25%

f,g

1.25%

1.31%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

1.38%

1.36%

1.58%

1.66%

1.19%

0.86%

Supplemental

data

Net

assets

end

period

(000’s)

........

$33,955

$35,548

$36,870

$38,681

$38,759

$49,843

Portfolio

turnover

rate

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

30.49%

51.72%

33.08%

35.16%

59.69%

41.18%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

Franklin

Mutual

Series

Funds

Financial

Highlights

Franklin

Mutual

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$25.86

$24.91

$24.51

$22.84

$27.07

$25.32

Income

from

investment

operations

Net

investment

income

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

0.25

0.49

0.56

0.52

0.44

0.39

Net

realized

and

unrealized

gains

(losses)

0.94

2.44

2.27

2.62

(2.44)

4.43

Total

from

investment

operations

........

1.19

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

period

..........

$27.05

$25.86

$24.91

$24.51

$22.84

$27.07

Total

return

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

4.60%

11.79%

11.57%

14.00%

(7.05)%

19.37%

Ratios

average

net

assets

Expenses

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

0.71%

0.70%

0.71%

f,g

0.68%

0.74%

f,g

Expenses

incurred

connection

with

securities

sold

short

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

—%

0.02%

Net

investment

income

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

1.92%

1.91%

2.12%

2.21%

1.76%

1.40%

Supplemental

data

Net

assets

end

period

(000’s)

........

$322,404

$328,746

$329,655

$302,249

$286,332

$372,115

Portfolio

turnover

rate

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

30.49%

51.72%

33.08%

35.16%

59.69%

41.18%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Includes

dividends

and/or

interest

expense

securities

sold

short

and

security

borrowing

fees,

any.

See

below

for

the

ratios

such

expenses

average

net

assets

for

the

periods

presented.

See

Note

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited),

June

30,

2026

Franklin

Mutual

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

97.1%

Automobiles

1.5%

General

Motors

Co.

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

United

States

1,338,883

103,201,102

Banks

7.1%

Bank

America

Corp.

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

United

States

2,079,297

118,478,343

JPMorgan

Chase

Co.

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

United

States

722,162

236,385,288

PNC

Financial

Services

Group,

Inc.

(The)

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

United

States

570,811

140,545,084

495,408,715

Broadline

Retail

7.2%

Amazon.com,

Inc.

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

United

States

2,098,836

500,236,572

Building

Products

3.3%

Johnson

Controls

International

plc

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

United

States

1,162,099

169,794,285

Masco

Corp.

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

United

States

722,576

58,796,009

228,590,294

Capital

Markets

1.7%

BlackRock,

Inc.

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

United

States

123,759

119,001,704

Chemicals

2.3%

PPG

Industries,

Inc.

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

United

States

1,337,948

162,279,713

Communications

Equipment

1.8%

Cisco

Systems,

Inc.

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

United

States

1,031,085

121,111,244

Consumer

Finance

1.3%

Capital

One

Financial

Corp.

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

United

States

461,199

92,525,743

Consumer

Staples

Distribution

Retail

3.2%

Dollar

General

Corp.

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

United

States

1,034,334

119,062,187

Foods

Holding

Corp.

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

United

States

977,222

99,920,949

218,983,136

Diversified

Telecommunication

Services

0.4%

Uniti

Group,

Inc.

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

United

States

2,243,497

25,732,911

Electric

Utilities

3.4%

Entergy

Corp.

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

United

States

978,871

112,433,123

PPL

Corp.

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

United

States

3,481,884

126,566,483

238,999,606

Electronic

Equipment,

Instruments

Components

0.6%

Flex

Ltd.

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

United

States

252,453

40,915,058

Energy

Equipment

Services

1.7%

SLB

Ltd.

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

United

States

2,569,813

119,470,606

Entertainment

1.4%

Walt

Disney

Co.

(The)

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

United

States

1,036,650

99,777,562

Financial

Services

2.5%

Apollo

Global

Management,

Inc.

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

United

States

721,619

85,374,744

Fiserv,

Inc.

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

United

States

1,835,868

90,049,325

175,424,069

Food

Products

2.0%

Nestle

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

Switzerland

1,366,346

140,139,496

Ground

Transportation

1.7%

Union

Pacific

Corp.

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

United

States

428,556

116,567,232

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Country

Value

Common

Stocks

(continued)

Health

Care

Equipment

Supplies

5.5%

Abbott

Laboratories

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

United

States

1,607,600

145,873,624

Cooper

Cos.,

Inc.

(The)

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

United

States

1,969,415

141,226,750

Medtronic

plc

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

United

States

1,213,919

94,964,883

382,065,257

Household

Products

2.3%

Colgate-Palmolive

Co.

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

United

States

1,743,666

159,859,299

Insurance

6.5%

Arthur

Gallagher

Co.

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

United

States

655,925

150,580,702

Hartford

Insurance

Group,

Inc.

(The)

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

United

States

1,121,946

148,680,284

Progressive

Corp.

(The)

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

United

States

703,237

153,622,123

452,883,109

Interactive

Media

Services

0.9%

Meta

Platforms,

Inc.

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

United

States

111,203

62,639,538

Life

Sciences

Tools

Services

2.3%

Thermo

Fisher

Scientific,

Inc.

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

United

States

311,059

155,952,540

Machinery

2.4%

Dover

Corp.

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

United

States

754,267

169,167,003

Metals

Mining

1.9%

Reliance,

Inc.

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

United

States

353,053

131,900,601

Oil,

Gas

Consumable

Fuels

3.5%

Chevron

Corp.

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

United

States

721,575

119,608,272

EOG

Resources,

Inc.

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

United

States

972,687

126,186,685

245,794,957

Personal

Care

Products

1.6%

Estee

Lauder

Cos.,

Inc.

(The)

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

United

States

1,435,468

113,330,199

Pharmaceuticals

8.0%

Haleon

plc

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

United

States

34,299,645

158,057,817

Merck

Co.,

Inc.

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

United

States

940,506

120,855,021

Novartis

ADR

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

United

States

812,618

127,353,493

Roche

Holding

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

United

States

365,157

150,111,069

556,377,400

Retail

REITs

1.7%

Brixmor

Property

Group,

Inc.

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

United

States

3,799,439

119,796,312

Semiconductors

Semiconductor

Equipment

2.1%

Intel

Corp.

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

United

States

299,097

41,762,914

NXP

Semiconductors

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

Netherlands

358,541

100,760,777

142,523,691

Software

5.2%

Microsoft

Corp.

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

United

States

971,602

362,426,978

Specialty

Retail

3.2%

Dick's

Sporting

Goods,

Inc.

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

United

States

501,184

113,673,543

Ulta

Beauty,

Inc.

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

United

States

246,064

110,969,943

224,643,486

Technology

Hardware,

Storage

Peripherals

3.8%

Apple,

Inc.

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

United

States

903,036

261,302,497

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Tobacco

0.7%

British

American

Tobacco

plc

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

United

Kingdom

823,972

50,989,836

Trading

Companies

Distributors

2.4%

Ferguson

Enterprises,

Inc.

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

United

States

710,374

168,593,061

Total

Common

Stocks

(Cost

5,409,108,419

)

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

6,758,610,527

Preferred

Stocks

0.2%

Diversified

Telecommunication

Services

0.2%

a,b,c

Uniti

Group,

Inc.

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

United

States

14,312

15,382,684

Total

Preferred

Stocks

(Cost

12,458,840

)

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

15,382,684

Warrants

0.1%

Diversified

Telecommunication

Services

0.1%

a,b,c

Uniti

Group,

Inc.

8/01/35

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

United

States

437,045

4,319,097

Total

Warrants

(Cost

2,097,816

)

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

4,319,097

Principal

Amount

Corporate

Bonds

0.4%

Commercial

Services

Supplies

0.4%

Neptune

Bidco

US,

Inc.

Senior

Secured

Note

144A,

10.375

5/15/31

...........

United

States

17,392,800

18,040,247

Senior

Secured

Note

144A,

9.5

2/15/33

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

United

States

14,000,000

14,172,298

32,212,545

Total

Corporate

Bonds

(Cost

31,217,316

)

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

32,212,545

Senior

Floating

Rate

Interests

1.3%

Commercial

Services

Supplies

0.9%

Neptune

Bidco

US,

Inc.,

First

Lien,

2026

Dollar

CME

Term

Loan,

8.769

(

3-month

SOFR

2/03/33

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

United

States

61,167,305

60,755,037

Professional

Services

0.4%

CoreLogic,

Inc.,

First

Lien,

Initial

CME

Term

Loan

7.258

(

1-month

SOFR

3.5

6/02/28

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

United

States

30,447,299

30,142,826

Total

Senior

Floating

Rate

Interests

(Cost

89,911,327

)

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

90,897,863

Companies

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

Liquidation

(Cost

–

)

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

Total

Long

Term

Investments

(Cost

5,544,793,718

)

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

6,901,422,737

Franklin

Mutual

Series

Funds

Schedule

Investments

(unaudited)

Franklin

Mutual

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Short

Term

Investments

0.6%

Country

Value

Money

Market

Funds

0.6%

h,i

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.597

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

United

States

41,417,077

Total

Money

Market

Funds

(Cost

41,417,077

)

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

41,417,077

Total

Short

Term

Investments

(Cost

41,417,077

)

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

41,417,077

Total

Investments

(Cost

5,586,210,795

)

99.7

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

$6,942,839,814

Other

Assets,

less

Liabilities

0.3

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

18,480,713

Net

Assets

100.0%

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

$6,961,320,527

See

Abbreviations

page

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

less

than

0.1%

net

assets.

Non-income

producing.

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

See

Note

regarding

restricted

securities.

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

June

30,

2026,

the

aggregate

value

these

securities

was

$32,212,545,

representing

0.5%

net

assets.

See

Note

1(e)

regarding

senior

floating

rate

interests.

The

coupon

rate

shown

represents

the

rate

inclusive

any

caps

floors,

applicable,

effect

period

end.

Contingent

distributions

represent

the

right

receive

additional

distributions,

any,

during

the

reorganization

the

underlying

company.

represent

total

underlying

principal

debt

securities.

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

Franklin

Mutual

Series

Funds

Financial

Statements

Assets

and

Liabilities

June

30,

2026

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

International

Value

Fund

Assets:

Investments

securities:

Cost

Unaffiliated

issuers

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

$2,423,962,986

$6,960,026,466

$934,047,363

Cost

Non-controlled

affiliates

(Note

)

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

26,003,314

98,839,563

18,857,540

Value

Unaffiliated

issuers

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

$3,395,875,319

$8,875,861,319

$1,162,641,760

Value

Non-controlled

affiliates

(Note

)

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

26,003,314

98,839,563

18,857,540

Cash

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

—

1,075,613

—

Foreign

currency,

value

(cost

559,396

4,762,636

and

1,546,155

respectively)

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

559,396

4,762,636

1,568,927

Receivables:

Investment

securities

sold

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

3,432,304

48,014,126

—

Capital

sold

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

809,610

2,662,914

1,396,152

Dividends

and

interest

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

9,704,079

27,993,531

3,249,041

European

Union

tax

reclaims

(Note

)

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

—

331,892

Unrealized

appreciation

OTC

forward

exchange

contracts

........

—

2,986,486

—

Total

assets

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

3,436,384,022

9,062,196,188

1,188,045,312

Liabilities:

Payables:

Investment

securities

purchased

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

3,047

32,303,210

1,773,244

Capital

redeemed

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

2,039,539

8,948,343

6,632,803

Management

fees

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

1,896,259

6,265,439

707,109

Distribution

fees

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

188,058

1,185,200

98,635

Transfer

agent

fees

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

364,739

1,727,208

258,452

Trustees'

fees

and

expenses

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

198,482

867,402

112,994

Deposits

from

brokers

for:

OTC

derivative

contracts

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

—

240,000

—

Unrealized

depreciation

OTC

forward

exchange

contracts

........

—

192,385

—

Accrued

expenses

and

other

liabilities

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

296,248

1,021,213

187,683

Total

liabilities

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

4,986,372

52,750,400

9,770,920

Net

assets,

value

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

$3,431,397,650

$9,009,445,788

$1,178,274,392

Net

assets

consist

of:

Paid-in

capital

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

$2,151,130,645

$6,330,508,749

$859,463,538

Total

distributable

earnings

(losses)

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

1,280,267,005

2,678,937,039

318,810,854

Net

assets,

value

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

$3,431,397,650

$9,009,445,788

$1,178,274,392

Franklin

Mutual

Series

Funds

Financial

Statements

Assets

and

Liabilities

(continued)

June

30,

2026

(unaudited)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

International

Value

Fund

Class

Net

assets,

value

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

$2,293,902,355

$3,228,748,641

$697,531,196

outstanding

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

120,797,740

99,444,851

20,889,303

Net

asset

value

and

maximum

offering

price

per

...........

$18.99

$32.47

$33.39

Class

Net

assets,

value

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

$858,455,164

$5,128,473,601

$421,106,109

outstanding

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

45,976,838

164,132,653

13,084,285

Net

asset

value

per

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

$18.67

$31.25

$32.18

Maximum

offering

price

per

(net

asset

value

per

.50

)

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

$19.76

$33.07

$34.05

Class

Net

assets,

value

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

$12,953,368

$99,806,539

$8,078,167

outstanding

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

687,546

3,167,227

245,769

Net

asset

value

and

maximum

offering

price

per

..........

$18.84

$31.51

$32.87

Class

Net

assets,

value

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

$1,367,721

$98,621,747

$9,395,268

outstanding

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

74,808

3,232,029

301,382

Net

asset

value

and

maximum

offering

price

per

...........

$18.28

$30.51

$31.17

Class

R6:

Net

assets,

value

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

$264,719,042

$453,795,260

$42,163,652

outstanding

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

13,947,330

13,985,257

1,262,735

Net

asset

value

and

maximum

offering

price

per

...........

$18.98

$32.45

$33.39

Net

asset

value

per

may

not

recalculate

due

rounding.

Redemption

price

equal

net

asset

value

less

contingent

deferred

sales

charges,

applicable.

Franklin

Mutual

Series

Funds

Financial

Statements

Assets

and

Liabilities

(continued)

June

30,

2026

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Assets:

Investments

securities:

Cost

Unaffiliated

issuers

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

$2,055,830,050

$5,544,793,718

Cost

Non-controlled

affiliates

(Note

and

)

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

197,908,631

41,417,077

Value

Unaffiliated

issuers

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

$2,471,461,026

$6,901,422,737

Value

Non-controlled

affiliates

(Note

and

)

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

219,978,128

41,417,077

Cash

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

132,229

725,637

Foreign

currency,

value

(cost

1,351,298

and

–

respectively)

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

1,420,462

—

Receivables:

Investment

securities

sold

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

24,090,544

14,369,732

Capital

sold

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

1,213,382

880,735

Dividends

and

interest

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

11,450,196

12,926,800

European

Union

tax

reclaims

(Note

)

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

786,967

—

Total

assets

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

2,730,532,934

6,971,742,718

Liabilities:

Payables:

Investment

securities

purchased

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

1,772

8,287

Capital

redeemed

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

1,727,305

3,866,836

Management

fees

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

1,501,457

3,803,097

Distribution

fees

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

135,825

570,260

Transfer

agent

fees

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

332,735

896,466

Trustees'

fees

and

expenses

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

246,537

764,859

Options

written,

value

(premiums

received

19,590

and

–

respectively)

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

14,800

—

Accrued

expenses

and

other

liabilities

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

285,589

512,386

Total

liabilities

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

4,246,020

10,422,191

Net

assets,

value

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

$2,726,286,914

$6,961,320,527

Net

assets

consist

of:

Paid-in

capital

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

$2,596,967,325

$4,787,559,280

Total

distributable

earnings

(losses)

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

129,319,589

2,173,761,247

Net

assets,

value

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

$2,726,286,914

$6,961,320,527

Franklin

Mutual

Series

Funds

Financial

Statements

Assets

and

Liabilities

(continued)

June

30,

2026

(unaudited)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Class

Net

assets,

value

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

$2,099,486,943

$3,988,414,907

outstanding

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

123,085,216

147,337,389

Net

asset

value

and

maximum

offering

price

per

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

$17.06

$27.07

Class

Net

assets,

value

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

$575,057,454

$2,588,118,241

outstanding

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

34,432,517

97,485,778

Net

asset

value

per

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

$16.70

$26.55

Maximum

offering

price

per

(net

asset

value

per

.50

)

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

$17.67

$28.10

Class

Net

assets,

value

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

$19,332,074

$28,428,861

outstanding

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

1,162,705

1,058,961

Net

asset

value

and

maximum

offering

price

per

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

$16.63

$26.85

Class

Net

assets,

value

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

$3,261,271

$33,954,829

outstanding

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

199,490

1,286,609

Net

asset

value

and

maximum

offering

price

per

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

$16.35

$26.39

Class

R6:

Net

assets,

value

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

$29,149,172

$322,403,689

outstanding

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

1,711,045

11,919,266

Net

asset

value

and

maximum

offering

price

per

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

$17.04

$27.05

Net

asset

value

per

may

not

recalculate

due

rounding.

Redemption

price

equal

net

asset

value

less

contingent

deferred

sales

charges,

applicable.

Franklin

Mutual

Series

Funds

Financial

Statements

Operations

for

the

six

months

ended

June

30,

2026

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

International

Value

Fund

Investment

income:

Dividends:

(net

foreign

taxes

$1,789,541,

$5,303,470

and

$1,770,167,

respectively)

Unaffiliated

issuers

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

$49,830,082

$135,898,117

$23,012,487

Non-controlled

affiliates

(Note

)

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

390,629

2,872,472

385,174

Interest:

Unaffiliated

issuers:

Paydown

gain

(loss)

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

—

9,392,200

—

Paid

cash

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

—

7,634,307

—

Other

income

(Note

1f)

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

—

1,781

Total

investment

income

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

50,220,711

155,797,096

23,399,442

Expenses:

Management

fees

(Note

)

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

11,742,571

38,828,718

4,902,870

Distribution

fees:

(Note

)

Class

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

1,093,958

6,584,262

531,215

Class

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

67,760

542,036

41,749

Class

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

3,567

260,071

21,526

Transfer

agent

fees:

(Note

)

Class

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

746,232

1,573,460

545,192

Class

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

281,331

2,512,849

311,045

Class

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

4,354

51,563

6,094

Class

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

458

49,607

6,337

Class

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

25,921

61,636

14,251

Custodian

fees

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

31,736

136,092

29,737

Reports

shareholders

fees

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

45,593

246,661

24,255

Registration

and

filing

fees

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

46,701

93,006

73,618

Professional

fees

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

88,579

100,011

91,232

Trustees'

fees

and

expenses

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

90,055

247,829

31,620

Other

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

115,834

589,505

107,073

Total

expenses

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

14,384,650

51,877,306

6,737,814

Expenses

waived/paid

affiliates

(Note

and

)

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

(18,692)

(339,452)

(298,589)

Net

expenses

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

14,365,958

51,537,854

6,439,225

Net

investment

income

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

35,854,753

104,259,242

16,960,217

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

182,011,160

461,391,587

45,230,642

Foreign

currency

transactions

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

(161,168)

(732,082)

(46,500)

Forward

exchange

contracts

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

—

890,802

—

Net

realized

gain

(loss)

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

181,849,992

461,550,307

45,184,142

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

(145,315,225)

(463,912,125)

(38,673,329)

Translation

other

assets

and

liabilities

denominated

foreign

currencies

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

(170,157)

(346,877)

(53,188)

Forward

exchange

contracts

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

—

2,794,101

—

Net

change

unrealized

appreciation

(depreciation)

..........

(145,485,382)

(461,464,901)

(38,726,517)

Net

realized

and

unrealized

gain

(loss)

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

36,364,610

85,406

6,457,625

Net

increase

(decrease)

net

assets

resulting

from

operations

........

$72,219,363

$104,344,648

$23,417,842

Franklin

Mutual

Series

Funds

Financial

Statements

Operations

(continued)

for

the

six

months

ended

June

30,

2026

(unaudited)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Investment

income:

Dividends:

(net

foreign

taxes

$1,406,044

and

$2,252,902,

respectively)

Unaffiliated

issuers

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

$31,002,226

$75,400,656

Non-controlled

affiliates

(Note

and

)

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

1,866,951

1,147,818

Interest:

Unaffiliated

issuers:

Paydown

gain

(loss)

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

5,228,185

9,317,032

Paid

cash

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

14,408,690

5,292,707

Non-controlled

affiliates

(Note

11)

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

5,934,525

—

Other

income

(Note

1f)

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

4,165

2,006

Total

investment

income

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

58,444,742

91,160,219

Expenses:

Management

fees

(Note

)

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

9,153,779

23,157,293

Distribution

fees:

(Note

)

Class

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

717,917

3,250,978

Class

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

98,772

147,871

Class

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

8,309

86,224

Transfer

agent

fees:

(Note

)

Class

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

654,075

1,371,591

Class

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

180,174

900,195

Class

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

6,183

10,211

Class

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

1,037

11,918

Class

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

7,749

30,555

Custodian

fees

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

22,126

26,710

Reports

shareholders

fees

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

48,462

114,108

Registration

and

filing

fees

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

59,976

60,946

Professional

fees

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

89,632

89,124

Trustees'

fees

and

expenses

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

71,697

187,899

Dividends

securities

sold

short

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

16,944

—

Other

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

117,679

274,028

Total

expenses

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

11,254,511

29,719,651

Expenses

waived/paid

affiliates

(Note

and

)

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

(94,381)

(52,816)

Net

expenses

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

11,160,130

29,666,835

Net

investment

income

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

47,284,612

61,493,384

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

88,631,014

565,513,392

Foreign

currency

transactions

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

(42,905)

9,495

Securities

sold

short

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

431,666

—

Net

realized

gain

(loss)

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

89,019,775

565,522,887

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

27,027,092

(318,475,700)

Non-controlled

affiliates

(Note

and

)

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

11,224,927

—

Translation

other

assets

and

liabilities

denominated

foreign

currencies

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

(26,729)

(58,615)

Written

options

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

4,790

—

Net

change

unrealized

appreciation

(depreciation)

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

38,230,080

(318,534,315)

Net

realized

and

unrealized

gain

(loss)

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

127,249,855

246,988,572

Net

increase

(decrease)

net

assets

resulting

from

operations

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

$174,534,467

$308,481,956

Includes

amortization

premium

and

accretion

discount.

Franklin

Mutual

Series

Funds

Financial

Statements

Changes

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

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

$35,854,753

$50,105,931

$104,259,242

$170,831,823

Net

realized

gain

(loss)

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

181,849,992

268,998,963

461,550,307

916,779,762

Net

change

unrealized

appreciation

(depreciation)

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

(145,485,382)

426,350,469

(461,464,901)

838,300,014

Net

increase

(decrease)

net

assets

resulting

from

operations

72,219,363

745,455,363

104,344,648

1,925,911,599

Distributions

shareholders:

Class

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

—

(152,249,333)

—

(333,098,292)

Class

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

—

(56,574,683)

—

(537,281,315)

Class

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

—

(781,365)

—

(10,712,517)

Class

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

—

(90,287)

—

(10,617,315)

Class

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

—

(17,691,729)

—

(47,701,933)

Total

distributions

shareholders

.....

—

(227,387,397)

—

(939,411,372)

Capital

transactions:

(Note

)

Class

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

(93,214,040)

(46,782,630)

(181,162,630)

(19,169,102)

Class

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

(42,640,790)

(36,020,408)

(320,970,897)

(111,173,006)

Class

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

(1,304,948)

(3,063,652)

(18,305,583)

(34,933,940)

Class

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

(98,451)

75,267

(9,037,562)

(11,392,325)

Class

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

(13,044,242)

15,229,210

(34,067,079)

(40,320,128)

Total

capital

transactions

.......

(150,302,471)

(70,562,213)

(563,543,751)

(216,988,501)

Net

increase

(decrease)

net

assets

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

(78,083,108)

447,505,753

(459,199,103)

769,511,726

Net

assets:

Beginning

period

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

3,509,480,758

3,061,975,005

9,468,644,891

8,699,133,165

End

period

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

$3,431,397,650

$3,509,480,758

$9,009,445,788

$9,468,644,891

Franklin

Mutual

Series

Funds

Financial

Statements

Changes

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Franklin

Mutual

International

Value

Fund

Franklin

Mutual

Quest

Fund

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

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

$16,960,217

$21,927,792

$47,284,612

$86,864,678

Net

realized

gain

(loss)

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

45,184,142

120,089,903

89,019,775

111,570,719

Net

change

unrealized

appreciation

(depreciation)

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

(38,726,517)

186,180,804

38,230,080

228,405,981

Net

increase

(decrease)

net

assets

resulting

from

operations

23,417,842

328,198,499

174,534,467

426,841,378

Distributions

shareholders:

Class

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

—

(23,925,331)

—

(84,019,558)

Class

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

—

(11,717,063)

—

(22,307,126)

Class

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

—

(188,741)

—

(639,141)

Class

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

—

(185,470)

—

(134,127)

Class

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

—

(1,349,669)

—

(1,252,011)

Total

distributions

shareholders

.....

—

(37,366,274)

—

(108,351,963)

Capital

transactions:

(Note

)

Class

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

(105,165,781)

141,724,139

(110,438,403)

(129,832,761)

Class

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

13,418,882

25,062,974

(31,983,452)

(46,036,163)

Class

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

(389,862)

(109,679)

(2,111,150)

(5,100,712)

Class

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

2,290,100

4,337,811

(555,387)

488,529

Class

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

(2,724,509)

11,904,001

(3,310,579)

(2,336,998)

Total

capital

transactions

.......

(92,571,170)

182,919,246

(148,398,971)

(182,818,105)

Net

increase

(decrease)

net

assets

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

(69,153,328)

473,751,471

26,135,496

135,671,310

Net

assets:

Beginning

period

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

1,247,427,720

773,676,249

2,700,151,418

2,564,480,108

End

period

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

$1,178,274,392

$1,247,427,720

$2,726,286,914

$2,700,151,418

Franklin

Mutual

Series

Funds

Financial

Statements

Changes

Net

Assets

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Franklin

Mutual

Fund

Six

Months

Ended

June

30,

2026

(unaudited)

Year

Ended

December

31,

2025

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

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

$61,493,384

$123,091,691

Net

realized

gain

(loss)

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

565,522,887

465,319,164

Net

change

unrealized

appreciation

(depreciation)

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

(318,534,315)

182,668,549

Net

increase

(decrease)

net

assets

resulting

from

operations

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

308,481,956

771,079,404

Distributions

shareholders:

Class

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

—

(290,944,959)

Class

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

—

(189,206,438)

Class

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

—

(1,986,947)

Class

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

—

(2,478,445)

Class

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

—

(23,989,484)

Total

distributions

shareholders

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

—

(508,606,273)

Capital

transactions:

(Note

)

Class

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

(174,940,827)

(110,773,875)

Class

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

(162,478,074)

(149,537,516)

Class

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

(4,018,922)

(7,788,646)

Class

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

(3,010,391)

(2,675,057)

Class

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

(21,029,600)

(13,347,335)

Total

capital

transactions

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

(365,477,814)

(284,122,429)

Net

increase

(decrease)

net

assets

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

(56,995,858)

(21,649,298)

Net

assets:

Beginning

period

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

7,018,316,385

7,039,965,683

End

period

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

$6,961,320,527

$7,018,316,385

Franklin

Mutual

Series

Funds

franklintempleton.com

Semiannual

Report

Notes

Financial

Statements

(unaudited)

Organization

and

Significant

Accounting

Policies

Franklin

Mutual

Series

Funds (Trust)

registered

under

the

Investment

Company

Act

1940

(1940

Act)

open-end

management

investment

company,

consisting

of five separate

funds

(Funds).

The

Funds

the

accounting

and

reporting

guidance

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

Funds

offer

five classes

Class

and

Class

R6.

Class

automatically

convert

Class

monthly

basis,

after

they

have

been

held

for

years.

Each

class

may

differ

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

matters

affecting

single

class,

its

exchange

privilege

and

fees

due

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Funds'

significant

accounting

policies

Financial

Instrument

Valuation

The Funds'

investments

financial

instruments

are

carried

fair

value

daily.

Fair

value

the

price

that

would

received

sell

asset

paid

transfer

liability

orderly

transaction

between

market

participants

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

each

business

day

p.m.

Eastern

time

the

regularly

scheduled

the

New

York

Stock

Exchange

(NYSE),

whichever

earlier. Under

compliance

policies

and

procedures

approved

the

Trust’s

Board

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

the

valuation

designee

and

has

responsibility

for

oversight

valuation.

The

investment

manager

assisted

the

Funds'

administrator

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

determine

fair

value.

Equity

securities

listed

exchange

the

NASDAQ

National

Market

System

are

valued

the

last

quoted

sale

price

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

the

trading

the

foreign

stock

exchange

which

the

security

primarily

traded,

p.m.

Eastern

time.

The

value

then

converted

into

its

U.S.

dollar

equivalent

the

foreign

exchange

rate

effect

p.m.

Eastern

time

the

day

that

the

value

the

security

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

multiple

markets

multiple

exchanges

are

valued

according

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

relationships

similar

securities.

Debt

securities

generally

trade

the

OTC

market rather

than

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

determine

fair

value.

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

market-based

approach

through

which

quotes

from

market

makers

are

used

determine

fair

value.

instances

where

sufficient

market

activity

may

not

exist

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

principal

repayments,

underlying

collateral,

and

other

unique

security

features

order

estimate

the

relevant

cash

flows,

which

are

then

discounted

calculate

the

fair

value.

Securities

denominated

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

the

foreign

exchange

rate

effect

p.m.

Eastern

time

the

date

that

the

values

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

the

closing

NAV.

Certain

derivative

financial

instruments

trade

the

OTC

market.

The

Funds'

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

determine

the

fair

value

those

instruments.

The

Funds'

net

benefit

obligation

under

the

derivative

contract,

measured

the

fair

value

the

contract,

included

net

assets.

The

Funds

have

procedures

determine

the

fair

value

financial

instruments

for

which

market

prices

are

not

reliable

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

market-based

approach

which

may

use

comparable

assets

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

determine

the

fair

value

the

investment.

income-based

valuation

approach

may

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

also

used

which

the

anticipated

future

cash

flows

the

investment

are

discounted

calculate

fair

value.

Discounts

may

also

applied

due

the

nature

duration

any

restrictions

the

disposition

the

investments.

Due

the

inherent

uncertainty

valuations

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

active

market

existed.

Trading

securities

foreign

securities

stock

exchanges

and

OTC

markets

may

completed

before

p.m.

Eastern

time.

addition,

trading

certain

foreign

markets

may

not

take

place

every

Funds'

business

day.

Events

can occur

between

the

time

which

trading

foreign

security

completed

and

p.m.

Eastern

time

that

might

call

into

question

the

reliability

the

value

portfolio

security

held

the

Fund.

result,

differences

may

arise

between

the

value

the

Funds'

portfolio

securities

determined

the

foreign

market

and

the

latest

indications

value

p.m.

Eastern

time.

order

minimize

the

potential

for

these

differences,

independent

pricing

service

may

used

adjust

the

value

the

Funds'

portfolio

securities

the

latest

indications

fair

value

p.m.

Eastern

time.

June

30,

2026,

certain

securities

may

have

been

fair

valued

using

these

procedures,

which

case

the

securities

were

categorized

Level

within

the

fair

value

hierarchy

(referred

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

information.

When

the

last

day

the

reporting

period

non-business

day,

certain

foreign

markets

may

open

those

days

that

the

Funds'

NAV

not

calculated,

which

could

result

differences

between

the

value

the

Funds'

portfolio

securities

the

last

business

day

and

the

last

calendar

day

the

reporting

period.

Any

security

valuation

changes

due

open

foreign

market

are

adjusted

and

reflected

the

Funds

for

financial

reporting

purposes.

Foreign

Currency

Translation

Portfolio

securities

and

other

assets

and

liabilities

denominated

foreign

currencies

are

translated

into

U.S.

dollars

based

the

exchange

rate

such

currencies

against

U.S.

dollars

the

date

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

facilitate

transactions

denominated

foreign

currency.

Purchases

and

sales

securities,

income

and

expense

items

denominated

foreign

currencies

are

translated

into

U.S.

dollars

the

exchange

rate

effect

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

foreign

currencies

contain

risks

that

those

currencies

will

decline

value

relative

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

reliability

foreign

exchange

rates

used

convert

the

U.S.

dollar

equivalent

value.

such

event

occurs,

the

foreign

exchange

rate

will

valued

fair

value

using

procedures

established

and

approved

the

Board.

The

Funds

not

separately

report

the

effect

changes

foreign

exchange

rates

from

changes

market

prices

securities

held.

Such

changes

are

included

net

realized

and

unrealized

gain

loss

from

investments

the

Statements

Operations.

Realized

foreign

exchange

gains

losses

arise

from

sales

foreign

currencies,

currency

gains

losses

realized

between

the

trade

and

settlement

dates

securities

transactions

and

the

difference

between

the

recorded

amounts

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

the

amounts

actually

received

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

foreign

exchange

rates

foreign

denominated

assets

and

liabilities

other

than

investments

securities

held

the

end

the

reporting

period.

Derivative

Financial

Instruments

Certain

all

Funds

invested

derivative

financial

instruments

order

manage

risk

gain

exposure

various

other

investments

markets.

Derivatives

are

financial

contracts

based

underlying

notional

amount,

require

initial

investment

initial

net

investment

that

smaller

than

would

normally

required

have

similar

response

changes

market

factors,

and

require

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

the

counterparty

fulfill

their

obligations

under

the

terms

the

contract,

the

potential

for

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

gains

losses

excess

the

amounts

shown

the

Statements

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

these

contracts

for

the

period

are

included

the

Statements

Operations.

Organization

and

Significant

Accounting

Policies

(continued)

Financial

Instrument

Valuation

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Derivative

counterparty

credit

risk

managed

through

formal

evaluation

the

creditworthiness

all

potential

counterparties.

Certain

all Funds

attempt

reduce their

exposure

counterparty

credit

risk

OTC

derivatives,

whenever

possible,

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

collateral

requirements,

events

default,

early

termination.

Termination

events

applicable

the

counterparty

include

certain

deteriorations

the

credit

quality

the

counterparty.

Termination

events

applicable

the

Funds

include

failure

the

Funds

maintain

certain

net

asset

levels

and/or

limit

the

decline

net

assets

over

various

periods

time.

the

event

default

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

net

and

close-out

all

transactions

traded,

whether

not

arising

under

the

ISDA

agreement,

one

net

amount

payable

one

counterparty

the

other.

However,

absent

event

default

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

the

Statements

Assets

and

Liabilities.

Early

termination

the

counterparty

may

result

immediate

payment

the

Funds

any

net

liability

owed

that

counterparty

under

the

ISDA

agreement.

June

30,

2026,

Franklin

Mutual

Global

Discovery

Fund

had

OTC

derivatives

net

liability

position

counterparty

for

such

contracts.

Collateral

requirements

differ

type

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

For

OTC

derivatives

traded

under

ISDA

master

agreement,

posting

collateral

required

either

the

Fund

the

applicable

counterparty

the

total

net

exposure

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

$250,000,

and

can

vary

depending

the

counterparty

and

the

type

of agreement.

Generally,

collateral

determined

the

Fund

business

each

day

and

any

additional

collateral

required

due

changes

derivative

values

may

delivered

the

Fund

the

counterparty

the

business

day,

within

few

business

days.

Collateral

pledged

and/or

received

the

Fund,

any,

held

segregated

accounts

with

the

Fund’s

custodian/counterparty

broker

and

can

the

form

cash

and/or

securities.

Unrestricted

cash

may

invested

according

the

Funds'

investment

objectives.

the

extent

that

the

amounts

due

the

Fund

from

its

counterparties

are

not

subject

collateralization

are

not

fully

collateralized,

the

Fund

bears

the

risk

loss

from

counterparty

non-performance.

June

30,

2026,

Franklin

Mutual

Global

Discovery

Fund

received

$2,164,581

U.S.

Treasury

Bonds

and

Notes

collateral

for

derivatives.

Certain

all

Funds

entered

into

OTC forward

exchange

contracts

primarily

manage

exposure

certain

foreign

currencies.

forward

exchange

contract

agreement

between

the

Fund

and

counterparty

buy

sell

foreign

currency at

specific

exchange

rate

future

date. Forward

exchange

contracts

outstanding

period

end,

any,

are

listed

the

Funds'

Schedules

Investments.

Certain

all

Funds

purchased

wrote

exchange

traded

option

contracts

primarily

manage

exposure

equity

price

risk.

option

contract

entitling

the

holder

purchase

sell

specific

amount

units

asset

notional

amount

swap

(swaption),

specified

price.

When

option

purchased

written,

amount

equal

the

premium

paid

received

recorded

asset

liability,

respectively.

Upon

exercise

option,

the

acquisition

cost

sales

proceeds

the

underlying

investment

adjusted

any

premium

received

paid.

Upon

expiration

option,

any

premium

received

paid

recorded

realized

gain

loss.

Upon

closing

option

other

than

through

expiration

exercise,

the

difference

between

the

premium

received

paid

and

the

cost

the

position

recorded

realized

gain

loss. Option contracts

outstanding

period

end,

any,

are

listed

the

Funds'

Schedules

Investments.

See

Note

regarding

other

derivative

information.

Securities

Sold

Short

Certain

all

Funds

are

engaged

selling

securities

short,

which

obligates

the

Fund

replace

borrowed

security

with

the

same

security

current

fair

value.

The

Fund

incurs

loss

the

price

the

security

increases

between

the

date

the

short

sale

and

the

date

which

the

Fund

replaces

the

borrowed

security.

The

Fund

realizes

gain

the

price

the

security

declines

between

those

dates.

Gains

are

limited

the

price

which

the

Fund

sold

the

security

short,

while

losses

are

potentially

unlimited

size.

Organization

and

Significant

Accounting

Policies

(continued)

Derivative

Financial

Instruments

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

The

Fund

required

establish

margin

account

with

the

broker

lending

the

security

sold

short.

While

the

short

sale

outstanding,

the

broker

retains

the

proceeds

the

short

sale

the

extent

necessary

meet

margin

requirements

until

the

short

position

closed

out.

deposit

must

also

maintained

with

the

Fund's

custodian/counterparty

broker

consisting

cash

and/or

securities

having

value

equal

specified

percentage

the

value

the

securities

sold

short.

The

Fund

may

receive

income

from

the

investment

cash

collateral.

The

Fund

obligated

pay

fees

for

borrowing

the

securities

sold

short

and

required

pay

the

counterparty

any

dividends

and/or

interest

due

securities

sold

short.

Such

dividends

and/or

interest

and

any

security

borrowing

fees

are

recorded

expense

the

Fund.

At June

30,

2026, the

Funds

had

securities

sold

short.

Senior

Floating

Rate

Interests

Certain

all

Funds

invest

senior

secured

corporate

loans

that

pay

interest

rates

which

are

periodically

reset

reference

base

lending

rate

plus

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

designated

U.S.

bank

the

Secured

Overnight

Financing

Rate

(SOFR).

Senior

secured

corporate

loans

often

require

prepayment

principal

from

excess

cash

flows

the

discretion

the

borrower.

result,

actual

maturity

may

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

which

the

Funds

invest

are

generally

readily

marketable,

but

may

subject

certain

restrictions

resale.

Income

and

Deferred

Taxes

is each

Fund's

policy

qualify

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

distribute

shareholders

substantially

all

its

taxable

income

and

net

realized

gains

relieve

from

federal

income

and excise

taxes.

result,

provision

for

U.S.

federal

income

taxes

required.

The

Funds

may

subject

foreign

taxation

income

received,

capital

gains

the

sale

securities

and

certain

foreign

currency

transactions

the

foreign

jurisdictions

which

the

Funds

invest.

Foreign

taxes,

any,

are

recorded

based

the

tax

regulations

and

rates

that

exist

the

foreign

markets

which

the

Funds

invest.

some

cases,

the

Funds

may

entitled

reclaim

all

portion

such

taxes,

and

such

reclaim

amounts,

any,

are

reflected

dividend

receivable

the

Statements

Assets

and

Liabilities

and

dividend

income

the

Statements

Operations.

many

cases,

however,

the

Funds

may

not

receive

such

amounts

for

extended

period

time,

depending

the

country

investment.

When

capital

gain

tax

determined

apply,

certain

all

Funds

record

estimated

deferred

tax

liability

amount

that

would

payable

the

securities

were

disposed

the

valuation

date.

result

several

court

cases,

certain

countries

across

the

European

Union,

certain

all

Funds

filed

additional

tax

reclaims

for

previously

withheld

taxes

dividends

earned

those

countries

(EU

reclaims). Income

recognized,

any,

for

reclaims

reflected

other

income

the

Statements of

Operations

and

any

receivable,

any,

reflected

European

Union

tax

reclaims

the

Statements

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

other

expenses

the

Statements

Operations.

When

uncertainty

exists

the

ultimate

resolution

these

proceedings,

the

likelihood

receipt

these

reclaims,

and

the

potential

timing

payment,

amounts

are

reflected

the

financial

statements.

For

U.S.

income

tax

purposes,

reclaims

received

the

Funds,

any,

reduce

the

amount

foreign

taxes

Fund

shareholders

can

use

tax

deductions

or credits

their income

tax

returns.

the

event

that

reclaims

received

the

Funds during a

fiscal

year

exceed

foreign

withholding

taxes

paid

the

Funds,

and

the Funds

previously

passed through

its

shareholders

foreign

taxes

incurred

the

Funds

used

credit

deduction

shareholder’s

income

tax

return,

the

Funds will

enter

into

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

order

pay

the

associated

tax

liability

behalf

the Funds'

shareholders.

Each

Fund

may

recognize

income

tax

liability

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

less

than

50%

probability

that

will

sustained

upon

examination

the

tax

authorities

based

its

technical

merits.

June

30,

2026, each

Fund

has

determined

that

tax

liability

required

its

financial

statements

uncertain

tax

positions

for

any

open

tax

years

(or

expected

taken

future

tax

years).

The

Funds'

federal

and

state

income

and

federal

excise

tax

returns

for

the

prior

three

fiscal

years

are

subject

examination

the

Internal

Revenue

Service

and

state

departments

revenue.

Organization

and

Significant

Accounting

Policies

(continued)

Securities

Sold

Short

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

trade

date.

Realized

gains

and

losses

security

transactions

are

determined

specific

identification

basis.

Interest

income

(including

interest

income

from

payment-in-kind

securities,

any)

and

estimated

expenses

are

accrued

daily.

Amortization

premium

and

accretion

discount

debt

securities

are

included

interest

income.

Paydown

gains

and

losses

are

recorded

separately

the

Statements

Operations.

Certain

all

Funds

may

receive

other

income

from

investments

senior

secured

corporate

loans

unfunded

commitments,

including

amendment

fees,

consent

fees

commitment

fees.

These

fees

are

recorded

income

when

received

the

Funds. Facility

fees

are

recognized

income

over

the

expected

term

the

loan. Dividend

income

and

dividends

declared

securities

sold

short

are

recorded

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

not

available.

such

cases,

the

dividend

recorded

soon

the

information

received

the

Fund.

Distributions

shareholders

are

recorded

the ex-dividend

date.

Distributable

earnings

are

determined

according

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

accordance

with

U.S.

GAAP.

These

differences

may

permanent

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

reflect

their

tax

character.

These

reclassifications

have

impact

net

assets

the

results

operations.

Temporary

differences

are

not

reclassified,

they

may

reverse

subsequent

periods.

Common

expenses

incurred

the

Trust

are

allocated

among

the

Funds

based

the

ratio

net

assets

each

Fund

the

combined

net

assets

the

Trust

based

the

ratio

number

shareholders

each

Fund

the

combined

number

shareholders

the

Trust.

Fund

specific

expenses

are

charged

directly

the

Fund

that

incurred

the

expense.

Realized

and

unrealized gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

each

class

based

upon

the

relative

proportion

net

assets

each

class.

Differences

per

distributions

class

are

generally

due

differences

class

specific

expenses.

Accounting

Estimates

The

preparation

financial

statements

accordance

with

U.S.

GAAP

requires

management

make

estimates

and

assumptions

that

affect

the

reported

amounts

assets

and

liabilities

the

date

the

financial

statements

and

the

amounts

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Guarantees

and

Indemnifications

Under

the Trust's

organizational

documents,

its

officers

and trustees

are

indemnified

the Trust against

certain

liabilities

arising

out

the

performance

their

duties

the

Trust.

Additionally,

the

normal

course

business,

the Trust,

behalf

the

Funds, enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The Trust's

maximum

exposure

under

these

arrangements

unknown

this

would

involve

future

claims

that

may

made

against

the Trust

that

have

not

yet

occurred.

Currently,

the Trust

expects

the

risk

loss

remote.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Beneficial

Interest

June

30,

2026,

there

were

unlimited

number

authorized

(without

par value).

Transactions

the

Funds'

were

follows:

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Amount

Class

Six

Months

ended

June

30,

2026

sold

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

2,024,616

$38,326,877

2,067,541

$67,410,418

redeemed

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

(6,946,669)

(131,540,917)

(7,632,501)

(248,573,048)

Net

increase

(decrease)

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

(4,922,053)

$(93,214,040)

(5,564,960)

$(181,162,630)

Year

ended

December

31,

2025

sold

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

3,871,395

$68,827,168

4,810,729

$153,299,377

issued

reinvestment

distributions

..........

7,597,472

141,625,485

9,430,957

304,689,712

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)

Class

Six

Months

ended

June

30,

2026

sold

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

1,541,499

$28,958,741

3,649,135

$114,446,612

redeemed

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

(3,845,178)

(71,599,531)

(13,909,864)

(435,417,509)

Net

increase

(decrease)

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

(2,303,679)

$(42,640,790)

(10,260,729)

$(320,970,897)

Year

ended

December

31,

2025

sold

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

2,027,080

$35,370,767

7,895,565

$243,141,929

issued

reinvestment

distributions

..........

2,993,939

54,938,770

16,860,915

525,217,349

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)

Class

Six

Months

ended

June

30,

2026

sold

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

62,376

$1,172,101

240,892

$7,628,959

redeemed

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

(131,822)

(2,477,049)

(818,025)

(25,934,542)

Net

increase

(decrease)

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

(69,446)

$(1,304,948)

(577,133)

$(18,305,583)

Year

ended

December

31,

2025

sold

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

116,050

$2,010,596

446,428

$13,870,739

issued

reinvestment

distributions

..........

41,725

775,321

338,427

10,667,832

redeemed

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

(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)

Class

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Amount

Class

Six

Months

ended

June

30,

2026

sold

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

2,355

$43,059

175,221

$5,369,705

redeemed

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

(7,689)

(141,510)

(473,494)

(14,407,267)

Net

increase

(decrease)

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

(5,334)

$(98,451)

(298,273)

$(9,037,562)

Year

ended

December

31,

2025

sold

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

7,285

$121,720

315,581

$9,587,716

issued

reinvestment

distributions

..........

5,019

90,287

348,233

10,608,553

redeemed

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

(7,845)

(136,740)

(1,048,110)

(31,588,594)

Net

increase

(decrease)

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

4,459

$75,267

(384,296)

$(11,392,325)

Class

Six

Months

ended

June

30,

2026

sold

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

466,692

$8,910,741

790,825

$25,780,676

redeemed

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

(1,156,338)

(21,954,983)

(1,838,643)

(59,847,755)

Net

increase

(decrease)

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

(689,646)

$(13,044,242)

(1,047,818)

$(34,067,079)

Year

ended

December

31,

2025

sold

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

2,626,811

$45,871,697

1,506,919

$48,010,228

issued

reinvestment

distributions

..........

356,991

6,647,781

1,466,747

47,347,095

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)

Franklin

Mutual

International

Value

Fund

Franklin

Mutual

Quest

Fund

Amount

Class

Six

Months

ended

June

30,

2026

sold

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

1,274,704

$42,957,384

2,990,345

$49,875,878

redeemed

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

(4,409,987)

(148,123,165)

(9,616,394)

(160,314,281)

Net

increase

(decrease)

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

(3,135,283)

$(105,165,781)

(6,626,049)

$(110,438,403)

Year

ended

December

31,

2025

sold

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

8,323,847

$246,712,777

6,019,152

$92,309,146

issued

reinvestment

distributions

..........

687,113

22,263,912

4,954,082

79,273,003

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)

Class

Beneficial

Interest

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Franklin

Mutual

International

Value

Fund

Franklin

Mutual

Quest

Fund

Amount

Class

Six

Months

ended

June

30,

2026

sold

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

1,776,747

$58,561,550

929,969

$15,188,133

redeemed

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

(1,395,463)

(45,142,668)

(2,888,255)

(47,171,585)

Net

increase

(decrease)

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

381,284

$13,418,882

(1,958,286)

$(31,983,452)

Year

ended

December

31,

2025

sold

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

2,470,678

$70,849,024

1,697,403

$25,393,728

issued

reinvestment

distributions

..........

340,206

10,632,418

1,395,402

21,895,904

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)

Class

Six

Months

ended

June

30,

2026

sold

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

35,891

$1,203,802

59,499

$966,590

redeemed

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

(47,918)

(1,593,664)

(188,072)

(3,077,740)

Net

increase

(decrease)

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

(12,027)

$(389,862)

(128,573)

$(2,111,150)

Year

ended

December

31,

2025

sold

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

100,480

$2,910,416

147,512

$2,202,836

issued

reinvestment

distributions

..........

5,801

185,013

40,742

638,865

redeemed

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

(111,280)

(3,205,108)

(536,228)

(7,942,413)

Net

increase

(decrease)

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

(4,999)

$(109,679)

(347,974)

$(5,100,712)

Class

Six

Months

ended

June

30,

2026

sold

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

118,760

$3,729,724

5,657

$90,029

redeemed

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

(45,237)

(1,439,624)

(39,505)

(645,416)

Net

increase

(decrease)

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

73,523

$2,290,100

(33,848)

$(555,387)

Year

ended

December

31,

2025

sold

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

190,656

$5,399,318

187,864

$2,691,633

issued

reinvestment

distributions

..........

6,114

185,470

8,726

134,127

redeemed

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

(44,159)

(1,246,977)

(161,223)

(2,337,231)

Net

increase

(decrease)

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

152,611

$4,337,811

35,367

$488,529

Class

Six

Months

ended

June

30,

2026

sold

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

190,787

$6,465,598

82,226

$1,369,530

redeemed

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

(273,375)

(9,190,107)

(280,908)

(4,680,109)

Net

increase

(decrease)

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

(82,588)

$(2,724,509)

(198,682)

$(3,310,579)

Year

ended

December

31,

2025

sold

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

680,580

$20,019,394

229,101

$3,561,258

issued

reinvestment

distributions

..........

32,609

1,056,766

77,211

1,233,956

redeemed

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

(310,356)

(9,172,159)

(465,303)

(7,132,212)

Net

increase

(decrease)

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

402,833

$11,904,001

(158,991)

$(2,336,998)

Beneficial

Interest

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Franklin

Mutual

Fund

Amount

Class

Six

Months

ended

June

30,

2026

sold

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

1,847,203

$49,156,671

redeemed

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

(8,454,037)

(224,097,498)

Net

increase

(decrease)

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

(6,606,834)

$(174,940,827)

Year

ended

December

31,

2025

sold

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

4,346,590

$112,222,047

issued

reinvestment

distributions

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

9,893,563

258,636,360

redeemed

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

(18,592,387)

(481,632,282)

Net

increase

(decrease)

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

(4,352,234)

$(110,773,875)

Class

Six

Months

ended

June

30,

2026

sold

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

2,074,735

$53,981,917

redeemed

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

(8,313,213)

(216,459,991)

Net

increase

(decrease)

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

(6,238,478)

$(162,478,074)

Year

ended

December

31,

2025

sold

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

4,263,484

$108,370,722

issued

reinvestment

distributions

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

7,188,804

184,507,727

redeemed

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

(17,390,477)

(442,415,965)

Net

increase

(decrease)

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

(5,938,189)

$(149,537,516)

Class

Six

Months

ended

June

30,

2026

sold

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

69,163

$1,814,107

redeemed

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

(221,418)

(5,833,029)

Net

increase

(decrease)

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

(152,255)

$(4,018,922)

Year

ended

December

31,

2025

sold

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

156,376

$4,025,185

issued

reinvestment

distributions

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

76,147

1,980,327

redeemed

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

(538,242)

(13,794,158)

Net

increase

(decrease)

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

(305,719)

$(7,788,646)

Class

Six

Months

ended

June

30,

2026

sold

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

46,797

$1,220,060

redeemed

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

(165,010)

(4,230,451)

Net

increase

(decrease)

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

(118,213)

$(3,010,391)

Year

ended

December

31,

2025

sold

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

112,279

$2,846,763

issued

reinvestment

distributions

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

97,051

2,478,423

redeemed

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

(314,592)

(8,000,243)

Net

increase

(decrease)

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

(105,262)

$(2,675,057)

Class

Beneficial

Interest

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Transactions

with

Affiliates

Effective

August

17,

2026,

Franklin

Resources,

Inc.

was

renamed

Franklin

Templeton,

Inc.

Franklin

Templeton,

Inc.

the

holding

company

for

various

subsidiaries.

Certain

officers

and trustees

the Trust are

also

officers

and/or

directors

the

following

subsidiaries:

Management

Fees

Franklin

Mutual

Beacon

Fund

and

Franklin

Mutual

Quest

Fund

pay

investment

management

fee,

calculated

daily

and

paid

monthly,

to Franklin

Mutual based

the

average

daily

net

assets

each

the

Funds

follows:

Franklin

Mutual

Fund

Amount

Class

Six

Months

ended

June

30,

2026

sold

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

238,192

$6,296,543

redeemed

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

(1,029,450)

(27,326,143)

Net

increase

(decrease)

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

(791,258)

$(21,029,600)

Year

ended

December

31,

2025

sold

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

434,733

$11,209,499

issued

reinvestment

distributions

.........................................

917,199

23,951,464

redeemed

..............................................................

(1,875,650)

(48,508,298)

Net

increase

(decrease)

.........................................................

(523,718)

$(13,347,335)

May

include

portion

Class

that

were

automatically

converted

Class

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%

and

including

billion

0.645%

Over

billion,

and

including

billion

0.625%

Over

billion,

and

including

$10

billion

0.615%

excess

$10

billion

Beneficial

Interest

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Franklin

Mutual

Global

Discovery

Fund pays

investment

management fee,

calculated

daily

and

paid

monthly,

to Franklin

Mutual based

on the

average

daily

net

assets

the

Fund

follows:

Franklin

Mutual

International

Value

Fund pays

investment

management fee,

calculated

daily

and

paid

monthly,

to Franklin

Mutual based

on the

average

daily

net

assets

the

Fund

follows:

Franklin

Mutual

Fund pays

investment

management fee,

calculated

daily

and

paid

monthly,

to Franklin

Mutual based

on the

average

daily

net

assets

the

Fund

follows:

For

the

period

ended

June

30,

2026,

each

Fund's

annualized

gross

effective

investment

management

fee

rate

based

average

daily

net

assets

was

follows:

Annualized

Fee

Rate

Net

Assets

0.845%

and

including

billion

0.825%

Over

billion,

and

including

$10

billion

0.805%

Over

$10

billion,

and

including

$13

billion

0.785%

Over

$13

billion,

and

including

$16

billion

0.765%

Over

$16

billion,

and

including

$19

billion

0.745%

Over

$19

billion,

and

including

$22

billion

0.725%

Over

$22

billion,

and

including

$25

billion

0.705%

Over

$25

billion,

and

including

$28

billion

0.685%

excess

$28

billion

Annualized

Fee

Rate

Net

Assets

0.800%

and

including

billion

0.770%

Over

billion,

and

including

billion

0.750%

Over

billion,

and

including

billion

0.730%

excess

billion

Annualized

Fee

Rate

Net

Assets

0.675%

and

including

billion

0.645%

Over

billion,

and

including

$10

billion

0.625%

Over

$10

billion,

and

including

$15

billion

0.595%

Over

$15

billion,

and

including

$20

billion

0.585%

Over

$20

billion,

and

including

$25

billion

0.565%

Over

$25

billion,

and

including

$30

billion

0.555%

Over

$30

billion,

and

including

$35

billion

0.545%

excess

$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%

0.794%

Transactions

with

Affiliates

(continued)

Management

Fees

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Administrative

Fees

Under

agreement

with

Franklin

Mutual,

Services

provides

administrative

services

the

Funds.

The

fee

paid

Franklin

Mutual

based

each

of the

Fund's

average

daily

net

assets,

and

not

additional

expense

the

Funds.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

class,

with

the

exception

Class Z

and Class

R6 shares,

pursuant

Rule

12b-1

under

the

1940

Act.

Under

the

Funds'

Class

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

the

maximum

annual

plan

rate.

Under

the

Class

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

reimbursed

subsequent

periods.

addition,

under

the

Funds'

Class

and

R compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

monitoring

compliance

with

the

maximum

annual

plan

rates,

February

through

January

for

each

Fund.

The

maximum

annual

plan

rates,

based

the

average

daily

net

assets,

for

each

class,

are

follows:

The

Board

has

set

the

current

rate

0.25%

per

year

for

Class

until

further

notice

and

approval

the

Board.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

not

represent

expenses

the

Funds.

These

charges

are

deducted

from

the

proceeds

sales

fund

prior

investment

from

redemption

proceeds

prior

remittance,

applicable.

Distributors

has

advised

the

Funds

the

following

commission

transactions

the

sales

and

redemptions

the

Funds'

for

the

period:

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Gross

effective

investment

management

fee

rate

....................................

0.675%

0.666%

Class

...............................

0.35%

Class

...............................

1.00%

Class

...............................

0.50%

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

International

Value

Fund

Sales

charges

retained

net

commissions

paid

unaffiliated

brokers/

dealers

..................................................

$15,591

$83,717

$14,527

CDSC

retained

............................................

$4,046

$10,507

$2,952

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Sales

charges

retained

net

commissions

paid

unaffiliated

brokers/dealers

.............

$8,745

$29,310

CDSC

retained

.............................................................

$391

$5,769

Transactions

with

Affiliates

(continued)

Management

Fees

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Transfer

Agent

Fees

Each

class

pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

shareholder

servicing

obligations. The

fees

are based

fixed

margin

earned

Investor

Services

and

are allocated

the Funds

based

upon

relative

assets

and

relative

transactions. In

addition,

each

class reimburses

Investor

Services

for

out

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

third

parties.

These

fees

paid

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

such

classes'

aggregate

net

assets.

Class

pays

Investor

Services

transfer

agent

fees

allocated

specifically

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

period

ended

June

30,

2026,

the Funds

paid

transfer

agent

fees

noted

the

Statements of

Operations

which

the

following

amounts

were

retained

Investor

Services:

Investments

Affiliated

Management

Investment

Companies

Certain

all

Funds

invest

one

affiliated

management

investment

companies.

defined

the

1940

Act,

investment

deemed

“Controlled

Affiliate”

fund

when

fund

owns,

either

directly

indirectly,

25%

the

affiliated

fund’s

outstanding

has

the

power

exercise

control

over

management

policies

such

fund.

The

Funds

not

invest

for

purposes

exercising

controlling

influence

over

the

management

policies.

Management

fees

paid

the

Funds

are

waived

assets

invested

the

affiliated

management

investment

companies,

noted

the

Statements

Operations,

amount

not

exceed

the

management

and

administrative

fees,

applicable, paid

directly

indirectly

each

affiliate.

During

the

period

ended

June

30,

2026,

investments

affiliated

management

investment

companies

were

follows:

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

International

Value

Fund

Transfer

agent

fees

.........................................

$382,483

$1,331,775

$191,374

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Transfer

agent

fees

..........................................................

$323,789

$824,086

Value

Beginning

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Period

Number

Held

End

Period

Investment

Income

Franklin

Mutual

Beacon

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.597%

............

$34,227,113

$171,443,782

$(179,667,581)

$—

$26,003,314

26,003,314

$390,629

Total

Affiliated

Securities

...

$34,227,113

$171,443,782

$(179,667,581)

$—

$26,003,314

$390,629

Transactions

with

Affiliates

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Waiver

and

Expense

Reimbursements

Franklin

Mutual

has

contractually

agreed

advance

waive

limit

its

fees

and

assume

its

own

expense

certain

expenses

otherwise

payable

Franklin

Mutual

Global

Discovery

Fund

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses,

expenses

securities

sold

short,

and

certain

non-routine

expenses

costs,

including

those

relating

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

the

Fund

not

exceed

1.00%

based

the

average

net

assets

each

class

until

April

30,

2027.

Total

expenses

waived

paid

are

not

subject

recapture

subsequent

the

Fund's

fiscal

year

end.

Value

Beginning

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Period

Number

Held

End

Period

Investment

Income

Franklin

Mutual

Global

Discovery

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.597%

............

$164,225,510

$925,047,327

$(990,433,274)

$—

$98,839,563

98,839,563

$2,872,472

Total

Affiliated

Securities

...

$164,225,510

$925,047,327

$(990,433,274)

$—

$98,839,563

$2,872,472

Franklin

Mutual

International

Value

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.597%

............

$22,537,482

$176,440,893

$(180,120,835)

$—

$18,857,540

18,857,540

$385,174

Total

Affiliated

Securities

...

$22,537,482

$176,440,893

$(180,120,835)

$—

$18,857,540

$385,174

Franklin

Mutual

Quest

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.597%

............

$55,200,340

$461,857,084

$(463,301,984)

$—

$53,755,440

53,755,440

$1,866,951

Total

Affiliated

Securities

...

$55,200,340

$461,857,084

$(463,301,984)

$—

$53,755,440

$1,866,951

Franklin

Mutual

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.597%

............

$17,117,735

$761,721,683

$(737,422,341)

$—

$41,417,077

41,417,077

$1,147,818

Total

Affiliated

Securities

...

$17,117,735

$761,721,683

$(737,422,341)

$—

$41,417,077

$1,147,818

Transactions

with

Affiliates

(continued)

Investments

Affiliated

Management

Investment

Companies

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Franklin

Mutual

has

contractually

agreed

advance

waive

limit

its

fees

and

assume

its

own

expense

certain

expenses

otherwise

payable

Franklin

Mutual

International

Value

Fund

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses,

expenses

securities

sold

short,

and

certain

non-routine

expenses

costs,

including

those

relating

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

the

Fund

not

exceed

0.95%

based

the

average

net

assets

each

class

until

April

30,

2027.

Total

expenses

waived

paid

are

not

subject

recapture

subsequent

the

Fund's

fiscal

year

end.

Transfer

agent

fees

Class

Franklin

Mutual

Beacon

Fund,

Franklin

Mutual

International

Value

Fund

and

Franklin

Mutual

Quest

Fund

have

been

capped

that

transfer

agent

fees

for

that

class

not

exceed

0.02%

based

the

average

net

assets

the

class

until

April

30,

2027.

Transfer

agent

fees

Class

Franklin

Mutual

Global

Discovery

Fund

and

Franklin

Mutual

Fund

have

been

capped

that

transfer

agent

fees

for

that

class

not

exceed

0.03%

based

the

average

net

assets

the

class

until

April

30,

2027.

Independent

Trustees'

Retirement

Plan

January

1993,

the

Trust

adopted

Independent

Trustees’

Retirement

Plan

(Plan).

The

Plan

unfunded

defined

benefit

plan

that

provides

benefit

payments

Trustees

whose

length

service

and

retirement

age

meets

the

eligibility

requirements

the

Plan.

Benefits

under

the

Plan

are

based

years

service

and

fees

paid

each

trustee

the

time

retirement.

Effective

December

1996,

the

Plan

was

closed

new

participants.

During

the

period

ended

June

30,

2026,

the

Fund’s

projected

benefit

obligation

and

benefit

payments

under

the

Plan

were

follows:

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

International

Value

Fund

Projected

benefit

obligation

June

2026

.....................

$179,955

$797,124

$106,447

Increase

(decrease)

projected

benefit

obligation

.................

$9,844

$27,179

$3,505

Benefit

payments

made

retired

trustees

........................

$(9,029)

$(24,015)

$(3,209)

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Projected

benefit

obligation

June

2026

......................................

$229,870

$718,920

Increase

(decrease)

projected

benefit

obligation

..................................

$7,764

$20,059

Benefit

payments

made

retired

trustees

.........................................

$(7,002)

$(17,988)

The

projected

benefit

obligation

included

trustees’

fees

and

expenses

the

Statements

Assets

and

Liabilities.

The

increase

(decrease)

projected

benefit

obligation

reflected

trustees’

fees

and

expenses

the

Statements

Operations.

Transactions

with

Affiliates

(continued)

Waiver

and

Expense

Reimbursements

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Income

Taxes

For

tax

purposes,

capital

losses

may

carried

over

offset

future

capital

gains.

December

31,

2025,

the

capital

loss

carryforwards

were

follows:

June

30,

2026,

the

cost

investments

and

net

unrealized

appreciation

(depreciation) for

income

tax

purposes

were

follows:

Differences

between

income

and/or

capital

gains

determined

book

basis

and

tax

basis

are

primarily

due

differing

treatments

wash

sales,

passive

foreign

investment

company

shares,

bond

discounts

and

premiums,

tax

straddles

and

corporate

actions.

Investment

Transactions

Purchases

and

sales

of investments

(excluding

short

term

securities

and

securities

sold

short) for

the

period

ended

June

30,

2026,

were

follows:

Franklin

Mutual

Quest

Fund

Capital

loss

carryforwards

not

subject

expiration:

Short

term

................................................................................

49,482,782

Long

term

................................................................................

376,186,333

Total

capital

loss

carryforwards

...............................................................

$425,669,115

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

International

Value

Fund

Cost

investments

........................................

$2,451,452,230

$7,087,844,950

$967,597,230

Unrealized

appreciation

......................................

$1,046,142,704

$2,287,373,899

$274,743,559

Unrealized

depreciation

......................................

(75,716,301)

(397,723,866)

(60,841,489)

Net

unrealized

appreciation

(depreciation)

........................

$970,426,403

$1,889,650,033

$213,902,070

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Cost

investments

.........................................................

$2,274,476,660

$5,589,288,631

Unrealized

appreciation

.......................................................

$568,011,315

$1,521,588,163

Unrealized

depreciation

.......................................................

(151,063,621)

(168,036,980)

Net

unrealized

appreciation

(depreciation)

.........................................

$416,947,694

$1,353,551,183

Franklin

Mutual

Beacon

Fund

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

International

Value

Fund

Purchases

...............................................

$601,139,452

$2,333,806,526

$290,473,041

Sales

...................................................

$712,891,518

$2,720,626,233

$353,370,097

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Credit

Risk

and

Defaulted

Securities

June

30,

2026, Franklin

Mutual

Quest

Fund had 15.4% of

its

portfolio

invested

high

yield

securities,

senior

secured

floating

rate

loans,

other

securities rated

below

investment

grade

and

unrated

securities.

These

securities

may

sensitive

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

greater

risk

loss

due

default

than

higher

rated

securities.

The

Funds

may

purchase

the

pre-default

defaulted

debt

distressed

companies.

Distressed

companies

are

financially

troubled

and

could

are

already

involved

financial

restructuring

bankruptcy.

Risks

associated

with

purchasing

these

securities

include

the

possibility

that

the

bankruptcy

other

restructuring

process

takes

longer

than

expected,

that

distributions

restructuring

are

less

than

anticipated,

either

both

which

may

result

unfavorable

consequences

the

Funds.

becomes

probable

that

the

income

debt

securities,

including

those

distressed

companies,

will

not

collected,

the

Funds

discontinue

accruing

income

and

recognize

adjustment

for

uncollectible

interest.

June

30,

2026,

the

aggregate

long

value

distressed

company

securities

for

which

interest

recognition

has

been

discontinued

for

Franklin

Mutual

Quest

Fund

was

$2,874,959,

representing

0.1%

the

Fund's

net

assets.

For

information

specific

securities,

see

the

accompanying

Schedule

Investments.

June

30,

2026,

Franklin

Mutual

Beacon

Fund,

Franklin

Mutual

Global

Discovery

Fund,

Franklin

Mutual

International

Value

Fund

and

Franklin

Mutual

Fund

did

not

hold

any

distressed

company

securities

for

which

interest

recognition

has

been

discontinued.

Concentration

Risk

Investing

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

U.S.

securities,

such

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

greater

market

volatility.

Political

and

financial

uncertainty

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

investing

foreign

securities.

addition,

certain

foreign

securities

may

not

liquid

U.S.

securities.

Ongoing

threatened

military

conflicts

throughout

the

world

may

cause

significant

market

disruptions

and

volatility.

The

hostilities

and

sanctions

resulting

from

those

conflicts

may

also

have

significant

impact

certain

investments

the

Fund

well

the

Fund’s

performance

and

liquidity.

Certain

investments

Chinese

companies

are

made

through

special

structure

known

VIE.

VIE

structure,

foreign

investors,

such

as Franklin

Mutual

Global

Discovery

Fund

and

Franklin

Mutual

International

Value

Fund,

will

only

own

stock

shell

company

rather

than

directly

the

VIE,

which

must

owned

Chinese

nationals

(and/or

Chinese

companies)

obtain

the

licenses

and/or

assets

required

operate

restricted

prohibited

sector

China.

The

value

the

shell

company

derived

from

its

ability

consolidate

the

VIE

into

its

financials

pursuant

contractual

arrangements

that

allow

the

shell

company

exert

degree

control

over,

and

obtain

economic

benefits

arising

from,

the

VIE

without

formal

legal

ownership.

While

VIEs

are

longstanding

industry

practice

and

are

well

known

Chinese

officials

and

regulators,

the

structure

historically

has

not

been

formally

recognized

under

Chinese

law

and

uncertain

whether

Chinese

officials

regulators

will

withdraw

their

implicit

acceptance

the

structure.

also

uncertain

whether

the

contractual

arrangements,

which

may

subject

conflicts

interest

between

the

legal

owners

the

VIE

and

foreign

investors,

would

enforced

Franklin

Mutual

Quest

Fund

Franklin

Mutual

Fund

Purchases

................................................................

$793,643,144

$2,120,413,176

Sales

....................................................................

$894,319,759

$2,416,606,318

Investment

Transactions

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Chinese

courts

arbitration

bodies.

Prohibitions

these

structures

the

Chinese

government,

the

inability

enforce

such

contracts,

from

which

the

shell

company

derives

its

value,

would

likely

cause

the

VIE-structured

holding(s)

suffer

significant,

detrimental,

and

possibly

permanent

losses,

and

turn,

adversely

affect

the

Funds'

returns

and

net

asset

value.

Restricted

Securities

Certain

all

Funds

invest

securities

that

are

restricted

under

the

Securities

Act

1933

(1933

Act).

Restricted

securities

are

often

purchased

private

placement

transactions,

and

cannot

sold

without

prior

registration

unless

the

sale

pursuant

exemption

under

the

1933

Act.

Disposal

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

acceptable

price

may

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

June

30,

2026,

investments

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

follows:

10.

Other

Derivative

Information

June

30,

2026,

investments

derivative

contracts

are

reflected

the

Statements

Assets

and

Liabilities

follows:

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Mutual

Quest

Fund

106,532

Inclusive

Language

Services

LLC,

Membership

Interests,

...............................

4/30/14

—

37,315,907

10,941

Uniti

Group,

Inc.

.............................

8/04/25

9,523,836

11,758,892

334,087

Uniti

Group,

Inc.,

8/01/35

......................

8/04/25

1,603,618

3,301,615

Total

Restricted

Securities

(Value

1.9%

Net

Assets)

...............

$11,127,454

$52,376,414

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Mutual

Fund

14,312

Uniti

Group,

Inc.

.............................

8/04/25

12,458,840

15,382,684

437,045

Uniti

Group,

Inc.,

8/01/35

......................

8/04/25

2,097,816

4,319,097

Total

Restricted

Securities

(Value

0.3%

Net

Assets)

...............

$14,556,656

$19,701,781

The

Fund

also

invests

unrestricted

securities

the

issuer,

valued

$19,670,855

June

30,

2026.

The

Fund

also

invests

unrestricted

securities

the

issuer,

valued

$25,732,911

June

30,

2026.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Assets

and

Liabilities

Location

Fair

Value

Statement

Assets

and

Liabilities

Location

Fair

Value

Franklin

Mutual

Global

Discovery

Fund

Foreign

exchange

contracts

Unrealized

appreciation

OTC

forward

exchange

contracts

2,986,486

Unrealized

depreciation

OTC

forward

exchange

contracts

192,385

Total

....................

$2,986,486

$192,385

Concentration

Risk

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

For

the

period

ended

June

30,

2026,

the

effect

derivative

contracts

the

Statements

Operations

was

follows:

For

the

period

ended

June

30,

2026,

the

average

month

end

notional

amount

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

Voting

Securities

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

include

investments

portfolio

companies

which

fund

owns

the

outstanding

voting

securities.

Additionally,

defined

the

1940

Act,

investment

deemed

“Controlled

Affiliate”

fund

when

fund

owns,

either

directly

indirectly,

25%

the

affiliated

companies’

outstanding

has

the

power

exercise

control

over

management

policies

such

company.

During

the

period

ended

June

30,

2026,

investments

“affiliated

companies”

were

follows:

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Assets

and

Liabilities

Location

Fair

Value

Statement

Assets

and

Liabilities

Location

Fair

Value

Franklin

Mutual

Quest

Fund

Equity

contracts

...........

Investments

securities,

value

—

Options

written,

value

14,800

Total

....................

$—

$14,800

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

Operations

Location

Net

Change

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Mutual

Global

Discovery

Fund

Net

realized

gain

(loss)

from:

Net

change

unrealized

appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Forward

exchange

contracts

$890,802

Forward

exchange

contracts

$2,794,101

Total

.......................

$890,802

$2,794,101

Franklin

Mutual

Quest

Fund

Net

realized

gain

(loss)

from:

Net

change

unrealized

appreciation

(depreciation)

on:

Equity

contracts

..............

Written

options

—

Written

options

4,790

Total

.......................

$—

$4,790

Franklin

Mutual

Global

Discovery

Fund

Franklin

Mutual

Quest

Fund

Forward

exchange

contracts

...................................................

$139,866,801

$—

Options

...................................................................

—

11,429

10.

Other

Derivative

Information

(continued)

Chinese

courts

arbitration

bodies.

Prohibitions

these

structures

the

Chinese

government,

the

inability

enforce

such

contracts,

from

which

the

shell

company

derives

its

value,

would

likely

cause

the

VIE-structured

holding(s)

suffer

significant,

detrimental,

and

possibly

permanent

losses,

and

turn,

adversely

affect

the

Funds'

returns

and

net

asset

value.

Restricted

Securities

Certain

all

Funds

invest

securities

that

are

restricted

under

the

Securities

Act

1933

(1933

Act).

Restricted

securities

are

often

purchased

private

placement

transactions,

and

cannot

sold

without

prior

registration

unless

the

sale

pursuant

exemption

under

the

1933

Act.

Disposal

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

acceptable

price

may

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

June

30,

2026,

investments

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

follows:

10.

Other

Derivative

Information

June

30,

2026,

investments

derivative

contracts

are

reflected

the

Statements

Assets

and

Liabilities

follows:

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Mutual

Quest

Fund

106,532

Inclusive

Language

Services

LLC,

Membership

Interests,

...............................

4/30/14

—

37,315,907

10,941

Uniti

Group,

Inc.

.............................

8/04/25

9,523,836

11,758,892

334,087

Uniti

Group,

Inc.,

8/01/35

......................

8/04/25

1,603,618

3,301,615

Total

Restricted

Securities

(Value

1.9%

Net

Assets)

...............

$11,127,454

$52,376,414

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Mutual

Fund

14,312

Uniti

Group,

Inc.

.............................

8/04/25

12,458,840

15,382,684

437,045

Uniti

Group,

Inc.,

8/01/35

......................

8/04/25

2,097,816

4,319,097

Total

Restricted

Securities

(Value

0.3%

Net

Assets)

...............

$14,556,656

$19,701,781

The

Fund

also

invests

unrestricted

securities

the

issuer,

valued

$19,670,855

June

30,

2026.

The

Fund

also

invests

unrestricted

securities

the

issuer,

valued

$25,732,911

June

30,

2026.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Assets

and

Liabilities

Location

Fair

Value

Statement

Assets

and

Liabilities

Location

Fair

Value

Franklin

Mutual

Global

Discovery

Fund

Foreign

exchange

contracts

Unrealized

appreciation

OTC

forward

exchange

contracts

2,986,486

Unrealized

depreciation

OTC

forward

exchange

contracts

192,385

Total

....................

$2,986,486

$192,385

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

12.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

Franklin

Templeton,

are

borrowers

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.995

billion

(Global

Credit

Facility)

which

matures

January

29,

2027.

This

Global

Credit

Facility

provides

source

funds

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

meet

future

unanticipated

unusually

large

redemption

requests.

Under

the

terms

the

Global

Credit

Facility,

the

Funds

may,

addition

interest

charged

any

borrowings

made

the

Funds

and

other

costs

incurred

the

Funds,

pay

their

fees

and

expenses

incurred

connection

with

the

implementation

and

maintenance

the

Global

Credit

Facility,

based

upon

their

relative

the

aggregate

net

assets

all

the

Borrowers,

including

annual

commitment

fee

0.15%

based

upon

the

unused

portion

the

Global

Credit

Facility.

These

fees

are

reflected

other

expenses

the

Statements

Operations.

During

the

period ended

June

30,

2026,

the

Funds

did

not

use

the

Global

Credit

Facility.

13.

Fair

Value

Measurements

The Funds

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

determining

the

value

the Funds' financial

instruments

and

are

summarized

the

following

fair

value

hierarchy:

Level

–

quoted

prices

active

markets

for

identical

financial

instruments

Level

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Value

Beginning

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Period

Number

Shares/Principal

Amount*

Held

End

Period

Investment

Income

Franklin

Mutual

Quest

Fund

Non-Controlled

Affiliates

Dividends

Inclusive

Language

Services

LLC,

Membership

Interests,

24,777,471

—

12,538,436

37,315,907

106,532

—

Interest

Sorenson

Holdings

LLC,

First

Lien,

Term

Loan,

PIK,

10%,

4/01/30

...

33,242,678

696,802

(18,843,330)

—

(191,963)

14,904,187

15,312,651

1,556,461

Sorenson

Holdings

LLC,

First

Lien,

Term

Loan,

PIK,

8%,

4/01/30

....

110,433,063

4,691,077

—

(1,121,546)

114,002,594

132,595,770

4,378,064

Total

Affiliated

Securities

(Value

End

Period

6.1%

Net

Assets)

$168,453,212

$5,387,879

$(18,843,330)

$—

$11,224,927

$166,222,688

$5,934,525

U.S.

dollars

unless

otherwise

indicated.

May

include

accretion,

amortization,

and/or

other

cost

basis

adjustments.

11.

Holdings

Voting

Securities

Portfolio

Companies

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Level

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

determining

the

fair

value

financial

instruments)

The

input

levels

are

not

necessarily

indication

the

risk

liquidity

associated

with

financial

instruments

that

level.

summary

inputs

used

June

30,

2026,

valuing

the

Funds'

assets

and

liabilities carried

fair

value,

follows:

Level

Total

Franklin

Mutual

Beacon

Fund

Assets:

Investments

Securities:

Common

Stocks

Automobiles

..........................

56,808,885

—

56,808,885

Banks

...............................

171,427,631

222,966,707

—

394,394,338

Beverages

...........................

—

42,248,216

—

42,248,216

Broadline

Retail

.......................

143,282,619

—

143,282,619

Building

Products

......................

145,668,163

—

145,668,163

Capital

Markets

........................

90,163,558

—

90,163,558

Electric

Utilities

........................

66,138,970

—

66,138,970

Entertainment

.........................

47,018,799

—

47,018,799

Food

Products

........................

—

122,183,311

—

122,183,311

Health

Care

Equipment

Supplies

.........

265,879,250

—

265,879,250

Household

Products

....................

136,417,915

42,128,344

—

178,546,259

Insurance

............................

293,155,144

—

293,155,144

Interactive

Media

Services

..............

100,501,639

—

100,501,639

Life

Sciences

Tools

Services

............

115,121,782

—

115,121,782

Machinery

............................

144,470,280

—

144,470,280

Metals

Mining

.......................

103,839,878

—

103,839,878

Oil,

Gas

Consumable

Fuels

.............

65,722,182

81,074,166

—

146,796,348

Pharmaceuticals

.......................

122,041,962

259,327,721

—

381,369,683

Retail

REITs

..........................

53,382,150

—

53,382,150

Semiconductors

Semiconductor

Equipment

105,438,977

—

105,438,977

Software

.............................

159,820,419

—

159,820,419

Specialty

Retail

........................

97,307,504

—

97,307,504

Trading

Companies

Distributors

..........

142,339,142

—

142,339,142

Companies

Liquidation

..................

—

Short

Term

Investments

...................

26,003,314

—

26,003,314

Total

Investments

Securities

...........

$2,651,950,163

$769,928,465

$3,421,878,633

Franklin

Mutual

Global

Discovery

Fund

Assets:

Investments

Securities:

Common

Stocks

Aerospace

Defense

...................

—

322,344,323

—

322,344,323

Automobiles

..........................

—

114,954,107

—

114,954,107

Banks

...............................

485,878,247

571,693,549

—

1,057,571,796

Beverages

...........................

—

166,562,316

—

166,562,316

Broadline

Retail

.......................

—

140,980,448

—

140,980,448

Building

Products

......................

—

141,584,768

—

141,584,768

Capital

Markets

........................

134,245,315

146,278,353

—

280,523,668

Chemicals

...........................

295,469,682

116,621,075

—

412,090,757

Consumer

Finance

.....................

147,488,000

—

147,488,000

Containers

Packaging

.................

156,432,428

—

156,432,428

Diversified

Telecommunication

Services

.....

—

155,225,107

—

155,225,107

Electric

Utilities

........................

—

91,845,289

—

91,845,289

Energy

Equipment

Services

.............

131,734,157

—

131,734,157

Entertainment

.........................

208,118,805

—

208,118,805

Financial

Services

......................

119,530,975

—

119,530,975

13.

Fair

Value

Measurements

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Level

Total

Franklin

Mutual

Global

Discovery

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Common

Stocks:

(continued)

Food

Products

........................

132,835,575

158,687,201

—

291,522,776

Ground

Transportation

..................

152,485,920

—

152,485,920

Health

Care

Equipment

Supplies

.........

330,491,887

—

330,491,887

Health

Care

Providers

Services

..........

334,250,994

—

334,250,994

Household

Products

....................

—

173,091,748

—

173,091,748

Industrial

Conglomerates

................

—

99,761,787

—

99,761,787

Insurance

............................

189,623,672

154,853,599

—

344,477,271

Interactive

Media

Services

..............

269,977,544

137,410,310

—

407,387,854

Media

...............................

82,143,767

—

82,143,767

Multi-Utilities

..........................

—

19,341,603

—

19,341,603

Oil,

Gas

Consumable

Fuels

.............

202,291,881

332,645,514

—

534,937,395

Pharmaceuticals

.......................

425,449,930

350,559,280

—

776,009,210

Professional

Services

...................

—

121,604,239

—

121,604,239

Semiconductors

Semiconductor

Equipment

—

150,163,071

—

150,163,071

Software

.............................

482,070,307

—

482,070,307

Technology

Hardware,

Storage

Peripherals

—

126,988,907

—

126,988,907

Tobacco

.............................

—

198,367,536

—

198,367,536

Trading

Companies

Distributors

..........

318,315,341

—

318,315,341

Water

Utilities

.........................

—

114,402,966

—

114,402,966

Corporate

Bonds

........................

—

40,399,365

—

40,399,365

Senior

Floating

Rate

Interests

...............

—

120,682,298

—

120,682,298

Companies

Liquidation

..................

—

Short

Term

Investments

...................

98,839,563

9,978,102

—

108,817,665

Total

Investments

Securities

...........

$4,697,673,990

$4,277,026,861

$31

$8,974,700,882

Other

Financial

Instruments:

Forward

Exchange

Contracts

...............

$—

$2,986,486

$—

$2,986,486

Total

Other

Financial

Instruments

.........

$—

$2,986,486

$—

$2,986,486

–

Liabilities:

Other

Financial

Instruments:

Forward

Exchange

Contracts

...............

—

192,385

—

192,385

Total

Other

Financial

Instruments

.........

$—

$192,385

$—

$192,385

Franklin

Mutual

International

Value

Fund

Assets:

Investments

Securities:

Common

Stocks

Aerospace

Defense

...................

—

41,772,979

—

41,772,979

Automobiles

..........................

—

38,906,120

—

38,906,120

Banks

...............................

—

240,680,440

—

240,680,440

Beverages

...........................

—

43,858,422

—

43,858,422

Broadline

Retail

.......................

—

24,176,525

—

24,176,525

Building

Products

......................

—

24,537,566

—

24,537,566

Capital

Markets

........................

—

71,525,669

—

71,525,669

Chemicals

...........................

—

11,733,328

—

11,733,328

Consumer

Staples

Distribution

Retail

......

—

21,986,114

—

21,986,114

Diversified

Telecommunication

Services

.....

—

58,719,137

—

58,719,137

Electric

Utilities

........................

—

22,880,424

—

22,880,424

Food

Products

........................

—

23,224,557

—

23,224,557

Health

Care

Equipment

Supplies

.........

—

19,253,310

—

19,253,310

Household

Durables

....................

—

18,802,678

—

18,802,678

Household

Products

....................

—

19,422,057

—

19,422,057

Insurance

............................

—

102,298,031

—

102,298,031

13.

Fair

Value

Measurements

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Level

Total

Franklin

Mutual

International

Value

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Common

Stocks:

(continued)

Interactive

Media

Services

..............

—

24,772,775

—

24,772,775

Machinery

............................

13,823,299

37,502,131

—

51,325,430

Metals

Mining

.......................

—

23,039,310

—

23,039,310

Oil,

Gas

Consumable

Fuels

.............

—

63,695,432

—

63,695,432

Paper

Forest

Products

.................

—

15,464,577

—

15,464,577

Personal

Care

Products

.................

—

18,668,052

—

18,668,052

Pharmaceuticals

.......................

—

72,909,682

—

72,909,682

Professional

Services

...................

—

24,008,700

—

24,008,700

Semiconductors

Semiconductor

Equipment

19,915,191

—

19,915,191

Tobacco

.............................

—

27,415,951

—

27,415,951

Trading

Companies

Distributors

..........

19,665,576

—

19,665,576

Water

Utilities

.........................

—

17,983,727

—

17,983,727

Short

Term

Investments

...................

18,857,540

—

18,857,540

Total

Investments

Securities

...........

$72,261,606

$1,109,237,694

$—

$1,181,499,300

Franklin

Mutual

Quest

Fund

Assets:

Investments

Securities:

Common

Stocks

Aerospace

Defense

...................

—

31,795,196

—

31,795,196

Automobile

Components

.................

28,774,392

—

28,774,392

Automobiles

..........................

—

23,159,784

—

23,159,784

Banks

...............................

91,082,380

130,891,220

—

221,973,600

Beverages

...........................

—

35,790,149

—

35,790,149

Building

Products

......................

36,614,582

—

36,614,582

Capital

Markets

........................

9,865,205

—

9,865,205

Chemicals

...........................

29,389,537

—

29,389,537

Communications

Equipment

..............

49,443,965

—

37,315,907

86,759,872

Consumer

Staples

Distribution

Retail

......

32,130,194

—

32,130,194

Containers

Packaging

.................

21,989,110

—

21,989,110

Diversified

Telecommunication

Services

.....

19,670,855

28,847,290

—

48,518,145

Electric

Utilities

........................

108,503,160

—

108,503,160

Energy

Equipment

Services

.............

57,908,803

—

57,908,803

Entertainment

.........................

118,890,106

—

118,890,106

Financial

Services

......................

32,001,977

—

32,001,977

Food

Products

........................

—

39,938,165

—

39,938,165

Ground

Transportation

..................

22,544,720

—

22,544,720

Health

Care

Equipment

Supplies

.........

71,050,711

—

71,050,711

Health

Care

Providers

Services

..........

33,661,753

29,954,650

—

63,616,403

Household

Products

....................

24,930,542

19,775,993

—

44,706,535

Insurance

............................

152,168,055

61,413,789

—

213,581,844

Interactive

Media

Services

..............

75,751,140

—

75,751,140

Machinery

............................

100,066,861

26,784,461

—

126,851,322

Media

...............................

8,550,360

—

8,550,360

Metals

Mining

.......................

56,548,071

42,647,808

—

99,195,879

Oil,

Gas

Consumable

Fuels

.............

49,598,763

41,433,709

—

91,032,472

Pharmaceuticals

.......................

80,513,109

45,605,101

—

126,118,210

Professional

Services

...................

—

25,104,088

—

25,104,088

Semiconductors

Semiconductor

Equipment

32,389,377

—

32,389,377

Software

.............................

72,165,655

—

72,165,655

Specialty

Retail

........................

21,685,892

—

21,685,892

Technology

Hardware,

Storage

Peripherals

—

53,062,953

—

53,062,953

Tobacco

.............................

—

32,972,114

—

32,972,114

Trading

Companies

Distributors

..........

28,198,765

—

28,198,765

13.

Fair

Value

Measurements

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Level

Total

Franklin

Mutual

Quest

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Preferred

Stocks

Diversified

Telecommunication

Services

.....

—

11,758,892

Technology

Hardware,

Storage

Peripherals

—

33,666,266

—

33,666,266

Rights

.................................

—

1,656,703

Warrants

...............................

—

3,301,615

Convertible

Bonds

.......................

—

14,118,750

—

14,118,750

Corporate

Bonds

........................

—

146,163,739

—

146,163,739

Senior

Floating

Rate

Interests

...............

—

125,530,543

128,906,781

254,437,324

Companies

Liquidation

..................

—

Short

Term

Investments

...................

53,755,440

—

53,755,440

Total

Investments

Securities

...........

$1,519,843,480

$988,655,768

$182,939,906

$2,691,439,154

–

Liabilities:

Other

Financial

Instruments:

Options

Written

..........................

$14,800

$—

$14,800

Total

Other

Financial

Instruments

.........

$14,800

$—

$14,800

Franklin

Mutual

Fund

Assets:

Investments

Securities:

Common

Stocks

Automobiles

..........................

103,201,102

—

103,201,102

Banks

...............................

495,408,715

—

495,408,715

Broadline

Retail

.......................

500,236,572

—

500,236,572

Building

Products

......................

228,590,294

—

228,590,294

Capital

Markets

........................

119,001,704

—

119,001,704

Chemicals

...........................

162,279,713

—

162,279,713

Communications

Equipment

..............

121,111,244

—

121,111,244

Consumer

Finance

.....................

92,525,743

—

92,525,743

Consumer

Staples

Distribution

Retail

......

218,983,136

—

218,983,136

Diversified

Telecommunication

Services

.....

25,732,911

—

25,732,911

Electric

Utilities

........................

238,999,606

—

238,999,606

Electronic

Equipment,

Instruments

Components

........................

40,915,058

—

40,915,058

Energy

Equipment

Services

.............

119,470,606

—

119,470,606

Entertainment

.........................

99,777,562

—

99,777,562

Financial

Services

......................

175,424,069

—

175,424,069

Food

Products

........................

—

140,139,496

—

140,139,496

Ground

Transportation

..................

116,567,232

—

116,567,232

Health

Care

Equipment

Supplies

.........

382,065,257

—

382,065,257

Household

Products

....................

159,859,299

—

159,859,299

Insurance

............................

452,883,109

—

452,883,109

Interactive

Media

Services

..............

62,639,538

—

62,639,538

Life

Sciences

Tools

Services

............

155,952,540

—

155,952,540

Machinery

............................

169,167,003

—

169,167,003

Metals

Mining

.......................

131,900,601

—

131,900,601

Oil,

Gas

Consumable

Fuels

.............

245,794,957

—

245,794,957

Personal

Care

Products

.................

113,330,199

—

113,330,199

Pharmaceuticals

.......................

248,208,514

308,168,886

—

556,377,400

Retail

REITs

..........................

119,796,312

—

119,796,312

Semiconductors

Semiconductor

Equipment

142,523,691

—

142,523,691

Software

.............................

362,426,978

—

362,426,978

Specialty

Retail

........................

224,643,486

—

224,643,486

Technology

Hardware,

Storage

Peripherals

261,302,497

—

261,302,497

Tobacco

.............................

—

50,989,836

—

50,989,836

13.

Fair

Value

Measurements

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Level

Total

Franklin

Mutual

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Common

Stocks:

(continued)

Trading

Companies

Distributors

..........

168,593,061

—

168,593,061

Preferred

Stocks

.........................

—

15,382,684

Warrants

...............................

—

4,319,097

Corporate

Bonds

........................

—

32,212,545

—

32,212,545

Senior

Floating

Rate

Interests

...............

—

90,897,863

—

90,897,863

Companies

Liquidation

..................

—

Short

Term

Investments

...................

41,417,077

—

41,417,077

Total

Investments

Securities

...........

$6,300,729,386

$622,408,626

$19,701,802

$6,942,839,814

For

detailed

categories,

see

the

accompanying

Schedule

Investments.

Includes

foreign

securities

valued

$769,928,465,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

foreign

securities

valued

$4,105,967,096,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

foreign

securities

valued

$1,109,237,694,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

financial

instruments

determined

have

value.

Includes

foreign

securities

valued

$702,842,736,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

foreign

securities

valued

$499,298,218,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

13.

Fair

Value

Measurements

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

reconciliation

which

Level

inputs

are

used

determining

fair

value

presented

when

there

are

significant

Level

assets

and/or

liabilities

the

beginning

and/or

end

the period.

June

30,

2026,

the

reconciliation

follows:

Balance

Beginning

Period

Purchases

Sales

Transfer

Into

Level

Transfer

Out

Level

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

(

Depreciation

)

Balance

End

Period

Net

Change

Unrealized

Appreciation

(Depreciation)

Assets

Held

Period

End

Franklin

Mutual

Quest

Fund

Assets:

Investments

Securities:

Common

Stocks

Communications

Equipment

.......

24,777,471

—

12,538,436

37,315,907

12,538,436

Diversified

Telecommunication

Services

........

11,722,927

—

(11,722,927)

—

Preferred

Stocks

Diversified

Telecommunication

Services

........

10,791,029

—

967,863

11,758,892

967,863

Rights

Media

...........

1,656,703

—

1,656,703

—

Warrants

Diversified

Telecommunication

Services

........

2,018,557

—

1,283,058

3,301,615

1,283,058

Senior

Floating

Rate

Interests

Wireless

Telecommunication

Services

........

143,675,741

5,089,117

(18,843,330)

—

298,762

—

(1,313,509)

128,906,781

(1,489,095)

Companies

Liquidation

—

Total

Investments

Securities

............

$194,642,428

$5,089,117

$(18,843,330)

$—

$(11,722,927)

$298,762

$—

$13,475,856

$182,939,906

$13,300,270

Purchases

include

all

purchases

securities

and

securities

received

corporate

actions.

Sales

include

all

sales

securities,

maturities,

paydowns

and

securities

tendered

corporate

actions.

Transferred

out

Level

result

the

availability

quoted

price

active

market

for

identical

securities

and

other

significant

observable

valuation

inputs.

May

include

amounts

corporate

action.

Includes

financial

instruments

determined

have

value.

13.

Fair

Value

Measurements

(continued)

Franklin

Mutual

Series

Funds

Notes

Financial

Statements

(unaudited)

franklintempleton.com

Semiannual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

fair

value

result

changes

unobservable

valuation

inputs

June

30,

2026,

are

follows:

14.

Operating

Segments

Each

Fund

operates

single

operating

segment,

which

investment

portfolio.

The

portfolio

managers

assigned

the

Fund

within the

Funds'

investment

manager

serve

the

Chief

Operating

Decision

Maker

(“CODM”)

and are

responsible

for

evaluating each

Fund's

operating

results

and

allocating

resources

accordance

with each

Fund’s

investment

strategy.

Internal

reporting

provided

the

CODM

aligns

with

the

accounting

policies

and

measurement

principles

used

the

financial

statements.

For

information

regarding

segment

assets,

segment

profit

loss,

and

significant

expenses,

refer

the

Statements

Assets

and

Liabilities

and

the

Statements

Operations,

along

with

the

notes

the

financial

statements.

The

Schedules

Investments

provides

details

the

Funds'

investments

that

generate

returns

such

interest,

dividends,

and

realized

and

unrealized

gains

losses.

Performance

metrics,

including

portfolio

turnover

and

expense

ratios,

are

disclosed

the

Financial

Highlights.

15.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

the financial

statements

and

determined

that

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

the

financial

statements.

Description

Fair

Value

End

Period

Valuation

Technique

Unobservable

Inputs

Amount

Range

(Weighted

Average)

Impact

Fair

Value

Input

Increases

Franklin

Mutual

Quest

Fund

Assets:

Investments

Securities:

Common

Stocks:

Communications

Equipment.

$37,315,907

Market

comparables

Discount

for

lack

marketability

7.3%

Decrease

EBITDA

multiple

7.3x

Increase

Revenue

multiple

1.7x

Increase

Senior

Floating

Rate

Interests:

Wireless

Telecommunication

Services

128,906,781

Discounted

cash

flow

Discount

rate

11.0%

12.5%

(12.4%)

Decrease

All

Other

Investments

16,717,218

c,d

Total

$182,939,906

Weighted

based

the

relative

fair

value

the

financial

instruments.

Represents

the

directional

change

the

fair

value

the

Level

financial

instruments

that

would

result

from

significant

and

reasonable

increase

the

corresponding

input.

significant

and

reasonable

decrease

the

input

would

have

the

opposite

effect.

Significant

increases

and

decreases

these

inputs

isolation

could

result

significantly

higher

lower

fair

value

measurements.

Includes

the

fair

value

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

Includes

financial

instruments

determined

have

value.

Abbreviations

List

EBITDA

Earnings

before

interest,

taxes,

depreciation

and

amortization

Enterprise

value

13.

Fair

Value

Measurements

(continued)

Franklin

Mutual

Series

Funds

franklintempleton.com

Semiannual

Report

FRANKLIN

MUTUAL

SERIES

FUNDS

(EACH

SERIES

SUCH

TRUST,

“FUND”)

(unaudited)

The

Board

Trustees

(the

“Board”),

including

majority

trustees

that

are

not

“interested

persons”

such

term

defined

section

2(a)(19)

the

Investment

Company

Act

1940

(hereinafter

referred

“independent

trustees”),

in-person

meeting

held

May

18,

2026,

unanimously

approved

the

continuance

each

Fund’s

investment

management

agreement.

Prior

meeting

all

the

trustees

for

the

purpose

considering

such

continuance,

the

independent

trustees

participated

two

other

meetings

held

connection

with

the

renewal

process.

Throughout

the

process,

the

independent

trustees

received

assistance

and

advice

from

and

met

separately

with

independent

counsel.

The

independent

trustees

met

with

and

interviewed

officers

the

investment

manager

(including

portfolio

managers),

the

transfer

agent

and

shareholder

services

group

and

the

distributor.

approving

the

continuation

the

investment

management

agreement

for

the

Funds,

the

Board,

including

the

independent

trustees,

determined

that

the

investment

management

fee

structure

was

fair

and

reasonable

and

that

continuance

the

agreement

was

the

best

interests

each

Fund

and

its

shareholders.

reaching

their

decision

the

investment

management

agreement,

the

trustees

took

into

account

information

furnished

throughout

the

year

Board

meetings,

well

information

specifically

requested

and

furnished

for

the

renewal

process,

which

culminated

the

meetings

referred

above

for

the

specific

purpose

considering

such

agreement.

Information

furnished

throughout

the

year

included,

among

others,

reports

each

Fund’s

investment

performance,

expenses,

portfolio

composition,

portfolio

brokerage

execution,

client

commission

arrangements,

derivatives,

securities

lending,

portfolio

turnover,

Rule

12b-1

plan,

distribution,

shareholder

servicing,

legal

and

compliance

matters,

pricing

securities,

sales

and

redemptions,

and

marketing

support

payments

made

financial

intermediaries,

well

third-party

survey

transfer

agent

fees

charged

funds

within

the

Franklin

Templeton,

Inc.

(“FT”)

complex

comparison

those

charged

other

fund

complexes

deemed

comparable.

Also,

financial

statements

and

other

information

about

the

scope

and

quality

services

provided

the

investment

manager

and

its

affiliates

and

enhancements

such

services

over

the

past

year

were

provided.

addition,

the

trustees

received

periodic

reports

throughout

the

year

and

during

the

renewal

process

relating

Changes

and

Disagreements

with

Accountants

For

the

period

covered

this

report

Not

applicable.

Results

Meeting(s)

Shareholders

For

the

period

covered

this

report

Not

applicable.

Remuneration

Paid

Directors,

Officers

and

Others

For

the

period

covered

this

report

Refer

the

financial

statements

included

herein.

Remuneration

officers

paid

the

Funds’

investment

manager

according

the

terms

the

agreement.

Board

Approval

Management

and

Subadvisory

Agreements

For

the

period

covered

this

report

Franklin

Mutual

Series

Funds

franklintempleton.com

Semiannual

Report

compliance

with

the

Funds’

investment

policies

and

restrictions.

During

the

renewal

process,

the

independent

trustees

considered

the

investment

manager’s

methods

operation

within

the

group

and

its

activities

behalf

other

clients.

The

Board

also

reviewed

and

considered

annual

report

payments

made

the

Funds

financial

intermediaries,

well

memorandum

relating

third-party

servicing

arrangements.

The

Board

acknowledged

FT’s

regular

updates

the

Board

strategic

initiatives,

ongoing

attention

the

service

level

quality

third-party

service

providers,

and

ongoing

efforts

modernize

its

mutual

fund

lineup,

along

with

the

impact

team

integrations

and

staff

reductions.

The

information

obtained

the

trustees

during

the

renewal

process

also

included

special

report

prepared

Broadridge

Financial

Solutions,

Inc.,

independent

third-party

analyst

that

utilizes

data

from

Lipper,

Inc.

(“Lipper”),

comparing

each

Fund’s

investment

performance

and

expenses

with

those

other

mutual

funds

deemed

comparable

such

Fund

selected

Lipper

(“Broadridge

Section

15(c)

Report”).

The

trustees

reviewed

the

Broadridge

Section

15(c)

Report

and

its

usefulness

the

renewal

process

with

respect

matters

such

comparative

fees,

expenses,

expense

ratios,

performance

and

volatility.

Except

noted

below,

they

concluded

that

the

report

continues

reliable

resource

the

performance

their

duties.

addition,

the

trustees

received

Profitability

Study

(“Profitability

Study”)

prepared

management

discussing

the

profitability

from

its

overall

U.S.

fund

operations,

well

individual

fund-by-fund

basis.

Over

the

past

year,

the

Board

and

counsel

the

independent

trustees

continued

receive

reports

management’s

handling

recent

regulatory

inquiries

and

pending

legal

actions

against

the

investment

manager

and

its

affiliates.

The

independent

trustees

were

satisfied

with

the

actions

taken

date

management

response

such

regulatory

and

legal

matters.

The

trustees

reviewed

the

personnel,

operations,

financial

condition

and

investment

management

capabilities,

methodologies

and

resources

the

investment

manager.

part

this

review,

particular

attention

was

given

management’s

diligent

risk

management

program,

including

continual

monitoring

and

management

cybersecurity,

liquidity

and

counterparty

credit

risk,

and

attention

given

derivatives

and

other

complex

instruments

that

are

held

and

expected

held

each

Fund

and

how

such

instruments

are

used

pursue

each

Fund’s

investment

goal(s).

The

Board

also

took

into

account,

among

other

things,

management’s

efforts

establishing

global

credit

facility

for

the

benefit

the

Funds

and

other

accounts

managed

provide

source

cash

for

temporary

and

emergency

purposes

meet

unusual

redemption

requests

well

the

strong

financial

position

the

investment

manager’s

parent

company

and

its

commitment

the

mutual

fund

business.

The

Board

noted

management’s

continuing

efforts

and

expenditures

establishing

effective

business

continuity

plans

and

developing

strategies

address

areas

heightened

concern

the

mutual

fund

industry,

such

cybersecurity

and

liquidity

risk

management.

The

Board

acknowledged

management’s

continued

development

strategies

address

areas

heightened

concern

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

recognized

management’s

commitment

facilitating

Board

oversight

particular

areas,

including

derivatives

and

payments

intermediaries,

enhanced

reporting.

addition

the

above

and

other

matters

considered

the

trustees

throughout

the

course

the

year,

the

following

discussion

relates

certain

primary

factors

relevant

the

Board’s

decision.

This

discussion

the

information

and

factors

considered

the

Board

(including

the

information

and

factors

discussed

above)

not

intended

exhaustive,

but

rather

summarizes

certain

factors

considered

the

Board.

view

the

wide

variety

factors

considered,

the

Board

did

not,

unless

otherwise

noted,

find

practicable

quantify

otherwise

assign

relative

weights

the

following

factors.

addition,

individual

trustees

may

have

assigned

different

weights

various

factors.

NATURE,

EXTENT

AND

QUALITY

SERVICES.

The

trustees

reviewed

the

nature,

extent

and

quality

the

services

provided,

and

provided,

the

investment

manager.

The

trustees

cited

the

investment

manager’s

ability

implement

each

Fund’s

disciplined

value

investment

approach

and

its

long-term

relationship

with

each

Fund

reasons

that

shareholders

choose

invest,

and

remain

invested,

the

Funds.

The

trustees

reviewed

each

Fund’s

portfolio

management

team,

including

its

performance,

staffing,

skills

and

compensation

program.

With

respect

portfolio

manager

compensation,

management

assured

the

trustees

that

each

Fund’s

long-term

performance

significant

component

incentive-based

compensation

and

noted

that

portion

portfolio

manager’s

incentive-based

compensation

paid

pre-

designated

funds

from

the

portfolio

manager’s

fund

management

area.

The

trustees

noted

that

the

portfolio

manager

compensation

program

aligned

the

interests

the

portfolio

managers

with

that

shareholders

the

Funds.

The

trustees

discussed

with

management

various

other

products,

portfolios

and

entities

that

are

advised

the

investment

manager

and

the

allocation

assets

and

Franklin

Mutual

Series

Funds

franklintempleton.com

Semiannual

Report

expenses

among

and

within

them,

well

their

relative

fees

and

reasons

for

differences

with

respect

thereto

and

any

potential

conflicts.

During

regular

Board

meetings

and

the

aforementioned

meetings

the

independent

trustees,

the

trustees

received

reports

and

presentations

the

investment

manager’s

best

execution

trading

policies.

The

trustees

considered

periodic

reports

provided

them

showing

that

the

investment

manager

complied

with

the

investment

policies

and

restrictions

each

Fund

well

other

reports

periodically

furnished

the

Board

covering

matters

such

the

compliance

portfolio

managers

and

other

management

personnel

with

the

code

ethics

covering

the

investment

management

personnel,

the

adherence

fair

value

pricing

procedures

established

the

Board

and

the

accuracy

net

asset

value

calculations.

The

Board

noted

the

extent

the

benefits

provided

the

Funds’

shareholders

from

being

part

the

group

funds,

including

the

right

exchange

investments

between

funds

(same

class)

without

sales

charge,

the

ability

reinvest

dividends

from

any

the

Funds

into

other

funds

and

the

right

combine

holdings

other

funds

obtain

reduced

sales

charges.

The

Board

specifically

noted

FT’s

commitment

technological

innovation

and

advancement,

including

continued

focus

developing

potential

use

cases

for

tokenization

and

the

blockchain

and

the

use

artificial

intelligence

tools

help

streamline

day-to-

day

tasks.

The

Board

also

noted

the

investment

manager’s

significant

efforts

developing

and

implementing

compliance

procedures

established

accordance

with

SEC

and

other

requirements.

The

Board

considered

the

nature,

extent

and

quality

the

services

provided

under

each

Fund’s

other

service

agreements

determine

that,

overall

basis,

Fund

shareholders

were

well

served.

this

connection,

the

Board

also

took

into

account

transfer

agent

and

shareholder

services

provided

the

Funds’

shareholders

affiliate

the

investment

manager.

While

such

considerations

directly

affected

the

trustees’

decision

renewing

each

Fund’s

transfer

agent

and

shareholder

services

agreement,

the

Board

also

considered

these

commitments

incidental

benefits

Fund

shareholders

deriving

from

the

investment

management

relationship.

Based

their

review,

the

trustees

were

satisfied

with

the

nature

and

quality

the

overall

services

provided,

and

provided,

the

investment

manager

and

its

affiliates

each

Fund

and

its

shareholders

and

were

confident

the

abilities

the

management

team

continue

the

disciplined

value

investment

approach

each

Fund

and

provide

quality

services

such

Fund

and

its

shareholders.

INVESTMENT

PERFORMANCE.

The

trustees

reviewed

and

placed

significant

emphasis

the

investment

performance

the

Funds

over

the

one-,

three-,

five-

and

10-year

periods

ended

December

31,

2025.

They

considered

the

history

performance

each

Fund

relative

various

benchmarks.

part

their

review,

they

inquired

management

regarding

benchmarks

and

restrictions

permitted

investments.

Consideration

was

also

given

performance

the

context

available

levels

cash

during

the

periods.

The

trustees

had

meetings

during

the

year,

including

the

meetings

referred

above

held

connection

with

the

renewal

process,

with

each

Fund’s

portfolio

managers

discuss

performance

and

the

management

such

Fund.

addition

the

materials

provided

management

connection

with

the

renewal

process,

the

independent

trustees

requested

throughout

the

year

(and

received)

additional

presentations

from

the

investment

manager

and

senior

management

regarding

the

performance

the

investment

manager

and

the

Funds.

part

these

presentations,

the

investment

manager

and

senior

management

reviewed

enhancements

that

have

been

made,

and

are

being

made,

the

investment

manager’s

investment

process.

Particular

attention

assessing

performance

was

given

the

Broadridge

Section

15(c)

Report.

That

report

showed

the

investment

performance

each

Fund

(Class

shares)

comparison

other

funds

determined

comparable

Lipper.

Franklin

Mutual

Fund.

The

comparable

funds

the

Fund,

chosen

Lipper,

included

all

retail

and

institutional

multi-cap

value

funds.

The

Fund

had

total

returns

the

lowest

performing

quintile

for

the

one-,

five-

and

10-year

periods

ended

December

31,

2025

and

had

annualized

total

returns

for

the

three-year

period

the

second-lowest

performing

quintile.

The

trustees

also

compared

Fund

performance

other

industry

benchmarks,

including

measures

risk-adjusted

performance

fund,

part

their

evaluation

investment

performance.

The

trustees

discussed

with

management

the

reasons

for

the

relative

underperformance

for

the

one-,

three-,

five-

and

10-year

periods

ended

December

31,

2025.

this

regard,

management

explained

that

significant

component

the

underperformance

was

attributable

stock

selection,

depending

the

period

issue,

the

financials,

communication

services,

information

technology,

industrials,

and

energy

Franklin

Mutual

Series

Funds

franklintempleton.com

Semiannual

Report

sectors.

addition,

part

these

discussions,

the

Board

took

into

account

the

recent

organizational

changes

where

the

portfolio

management

team

was

integrated

into

the

Franklin

Equity

group

(which

includes

other

investment

teams)

and

how

the

integration

was

intended

benefit

and

help

improve

the

performance

the

Fund.

While

disappointed

with

the

Fund’s

relative

underperformance,

based

management’s

willingness

take

appropriate

measures

address

Fund

performance

issues

and

management’s

responsiveness

the

Board’s

concerns

about

investment

performance,

the

Board

concluded

that

changes

with

respect

the

Funds

were

warranted

the

time

and

noted

that

would

continue

monitor

future

performance.

Franklin

Mutual

Global

Discovery

Fund.

The

comparable

funds

the

Fund,

chosen

Lipper,

included

retail

and

institutional

global

large-cap

value

funds.

The

Fund

had

total

returns

the

middle

performing

quintile

for

the

one-year

period

ended

December

31,

2025,

had

annualized

total

returns

for

the

three-year

period

the

second-lowest

performing

quintile,

had

annualized

total

returns

for

the

five-year

period

the

second-best

performing

quintile,

and

had

annualized

total

returns

for

the

10-year

period

the

lowest

performing

quintile.

The

trustees

also

compared

Fund

performance

other

industry

benchmarks,

including

measures

risk-adjusted

performance

fund,

part

their

evaluation

investment

performance.

The

trustees

concluded

that

the

Fund

had

performed

acceptable

manner

the

context

the

Fund’s

goals.

Franklin

Mutual

International

Value

Fund.

The

comparable

funds

the

Fund,

chosen

Lipper,

included

all

retail

and

institutional

international

multi-cap

value

funds.

The

Fund

had

total

returns

the

middle

performing

quintile

for

the

one-,

three-

and

10-year

periods

ended

December

31,

2025,

and

had

annualized

total

returns

for

the

five-year

period

the

best

performing

quintile.

The

trustees

also

compared

Fund

performance

other

industry

benchmarks,

including

measures

risk-

adjusted

performance

fund,

part

their

evaluation

investment

performance.

The

trustees

concluded

that

the

Fund

had

performed

acceptable

manner

the

context

the

Fund’s

goals.

Franklin

Mutual

Quest

Fund.

The

comparable

funds

the

Fund,

chosen

Lipper,

included

all

retail

and

institutional

flexible

portfolio

funds.

The

Fund

had

total

returns

the

second-best

performing

quintile

for

the

one-

and

five-year

periods

ended

December

31,

2025,

had

annualized

total

returns

for

the

three-year

period

the

middle

performing

quintile,

and

had

annualized

total

returns

for

the

10-year

period

the

second-lowest

performing

quintile.

The

trustees

also

compared

Fund

performance

other

industry

benchmarks,

including

measures

risk-adjusted

performance

fund,

part

their

evaluation

investment

performance.

The

trustees

concluded

that

the

Fund

had

performed

acceptable

manner

the

context

the

Fund’s

goals.

Franklin

Mutual

Beacon

Fund.

The

comparable

funds

the

Fund,

chosen

Lipper,

included

retail

and

institutional

global

large-cap

value

funds.

The

Fund

had

total

returns

the

second-best

performing

quintile

for

the

one-year

period

ended

December

31,

2025,

had

annualized

total

returns

for

the

three-

and

five-year

periods

the

second-lowest

performing

quintile,

and

had

annualized

total

returns

for

the

10-year

period

the

middle

performing

quintile.

The

trustees

also

compared

Fund

performance

other

industry

benchmarks,

including

measures

risk-adjusted

performance

fund,

part

their

evaluation

investment

performance.

The

trustees

discussed

with

management

the

reasons

for

the

relative

underperformance

for

the

three-

and

five-year

periods

ended

December

31,

2025.

The

Board

was

encouraged

the

improved

comparative

performance

for

the

one-,

three-

and

five-year

periods,

but

noted

that

such

relative

improvement

would

not

have

significant

impact

the

relative

performance

for

the

three-

and

five-year

periods

ended

December

31,

2025.

Based

the

recent

relative

performance,

the

Board

concluded

that

changes

with

respect

the

Funds

were

warranted

the

time

and

noted

that

would

continue

monitor

future

performance.

COMPARATIVE

EXPENSES

AND

MANAGEMENT

PROFITABILITY.

The

trustees

considered

the

cost

the

services

provided

and

provided

and

the

profits

realized

the

investment

manager

and

its

affiliates

from

their

respective

relationships

with

each

Fund.

part

the

renewal

process,

the

trustees

explored

with

management

the

trends

expense

ratios

over

the

past

three

fiscal

years

and

the

reasons

for

any

increases

each

Fund’s

expense

ratios

(or

components

thereof).

considering

the

appropriateness

the

management

fees

and

other

expenses

charged

each

Fund,

the

Board

took

into

account

various

factors

including

investment

performance

and

matters

relating

each

Fund’s

operations,

including,

but

not

limited

to,

the

quality

and

experience

its

portfolio

managers

and

research

staff.

Consideration

was

also

given

comparative

analysis

the

Broadridge

Section

15(c)

Report

the

investment

management

fee

and

total

expense

ratio

each

Fund

comparison

those

group

other

funds

selected

Lipper

its

appropriate

Lipper

expense

group.

Lipper

Franklin

Mutual

Series

Funds

franklintempleton.com

Semiannual

Report

expense

data

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

quite

different

from

those

currently

existing,

particularly

period

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

generally

increase

assets

decline

and

decrease

assets

grow,

the

Board

believed

the

independent

analysis

conducted

Lipper

appropriate

measure

comparative

expenses.

reviewing

comparative

costs,

emphasis

was

given

each

Fund’s

contractual

management

fees

comparison

the

contractual

management

fees

that

would

have

been

charged

other

funds

within

its

Lipper

expense

group

assuming

they

were

similar

size

such

Fund,

well

the

actual

total

expenses

each

Fund

comparison

those

its

Lipper

expense

group.

The

Lipper

contractual

management

fee

analysis

includes

administrative

charges

being

part

the

management

fee,

and

total

expenses,

for

comparative

consistency,

are

shown

Lipper

for

each

Fund’s

Class

shares.

Franklin

Mutual

Fund.

The

Fund’s

contractual

management

fee

rate

was

the

second-most

expensive

quintile

its

Lipper

expense

group

and

its

total

expenses

were

the

middle

quintile

such

group.

The

Board

found

such

comparative

fees

and

expenses

acceptable

view

factors

relating

the

Fund’s

operations,

such

the

quality

and

experience

its

portfolio

managers.

Franklin

Mutual

Global

Discovery

Fund.

The

Fund’s

contractual

management

fee

rate

was

the

most

expensive

quintile

its

Lipper

expense

group

and

its

total

expenses

were

the

second-most

expensive

quintile

such

group.

However,

the

Board

noted

that

the

Fund’s

total

expense

ratio

was

3.5

basis

points

above

the

median

the

Lipper

expense

group.

The

Board

took

into

account

Lipper’s

position

that

when

equity

fund’s

total

expense

ratio

within

basis

points

median,

considers

that

within

Lipper’s

tolerance

range

and

does

not

necessitate

deeper

review

expense

factors.

The

Board

found

such

comparative

fees

and

expenses

acceptable

view

these

additional

considerations

and

factors

relating

the

Fund’s

operations,

such

the

quality

and

experience

its

portfolio

managers.

Franklin

Mutual

International

Value

Fund.

The

Fund’s

contractual

management

fee

rate

was

the

second-most

expensive

quintile

its

Lipper

expense

group

and

its

total

expenses

were

the

middle

quintile

such

group.

The

Board

found

such

comparative

fees

and

expenses

acceptable

view

factors

relating

the

Fund’s

operations,

such

the

quality

and

experience

its

portfolio

managers.

Franklin

Mutual

Quest

Fund.

The

Fund’s

contractual

management

fee

rate

was

the

second-least

expensive

quintile

its

Lipper

expense

group

and

its

total

expenses

were

also

the

second-least

expensive

quintile

such

group.

The

Board

was

satisfied

with

such

comparative

fees

and

expenses.

Franklin

Mutual

Beacon

Fund.

The

Fund’s

contractual

management

fee

rate

was

the

least

expensive

quintile

its

Lipper

expense

group

and

its

total

expenses

were

also

the

least

expensive

quintile

such

group.

The

Board

was

satisfied

with

such

comparative

fees

and

expenses.

The

trustees

also

reviewed

the

Profitability

Study

addressing

profitability

FT,

from

its

overall

U.S.

fund

business,

well

profitability

each

Fund’s

investment

manager

and

its

affiliates,

from

providing

investment

management

and

other

services

each

Fund

during

the

12-month

period

ended

September

30,

2025,

the

most

recent

fiscal

year-end

FT.

The

trustees

reviewed

the

basis

which

such

reports

are

prepared

and

the

cost

allocation

methodology

utilized

the

Profitability

Study,

being

recognized

that

allocation

methodologies

may

each

reasonable

while

producing

different

results.

The

Board

also

noted

that

independent

registered

public

accounting

firm

has

been

engaged

the

investment

manager

periodically

review

and

assess

the

allocation

methodologies

used

solely

the

Board

with

respect

the

profitability

analysis.

The

independent

trustees

met

with

management

discuss

the

Profitability

Study.

This

included,

among

other

things,

comparison

investment

management

income

with

investment

management

expenses

each

Fund;

comparison

underwriting

revenues

and

expenses;

the

relative

relationship

investment

management

and

underwriting

expenses;

shareholder

servicing

profitability;

economies

scale;

and

the

relative

contribution

each

Fund

the

profitability

the

investment

manager

and

its

parent.

discussing

the

Profitability

Study

with

the

Board,

the

investment

manager

stated

its

belief

that

the

costs

incurred

establishing

the

infrastructure

necessary

operate

the

type

mutual

fund

operations

conducted

and

its

affiliates

may

not

fully

reflected

the

expenses

allocated

each

Fund

determining

its

profitability.

Franklin

Mutual

Series

Funds

franklintempleton.com

Semiannual

Report

The

Board

also

took

into

account

management’s

expenditures

improving

shareholder

services

provided

each

Fund,

well

the

need

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

trustees

also

considered

the

extent

which

the

investment

manager

may

derive

ancillary

benefits

from

the

Funds’

operations,

including

those

derived

from

economies

scale,

discussed

below,

the

allocation

each

Fund’s

brokerage

and

the

use

commission

dollars

pay

for

research

and

other

similar

services.

Based

upon

their

consideration

all

these

factors,

the

trustees

determined

that

the

level

profits

realized

the

investment

manager

and

its

affiliates

providing

services

each

Fund

was

not

excessive

view

the

nature,

quality

and

extent

services

provided.

ECONOMIES

SCALE.

The

Board

considered

economies

scale

realized

the

investment

manager

and

its

affiliates

the

Funds

grow

larger

and

the

extent

which

they

are

shared

with

the

Funds’

shareholders,

for

example,

the

level

the

investment

management

fees

charged,

the

quality

and

efficiency

services

rendered

and

increased

capital

commitments

benefiting

the

Funds

directly

indirectly.

While

recognizing

that

any

precise

determination

inherently

subjective,

the

trustees

noted

that,

based

upon

the

Profitability

Study,

some

funds

increase

size,

some

point

economies

scale

may

result

the

investment

manager

realizing

larger

profit

margin

investment

management

services

provided

such

fund.

The

trustees

also

noted

that

benefits

economies

scale

will

shared

with

each

Fund’s

shareholders

due

the

decline

the

effective

investment

management

fee

rate

breakpoints

are

achieved

such

Fund.

The

trustees

noted

that

breakpoints

had

been

instituted

part

each

Fund’s

investment

management

fees

and

that

the

Board

regularly

evaluates

whether

additional

breakpoints

are

appropriate.

For

the

Franklin

Mutual

Fund,

Franklin

Mutual

Global

Discovery

Fund

and

Franklin

Mutual

International

Value

Fund,

the

trustees

assessed

the

savings

shareholders

resulting

from

such

breakpoints

and

believed

they

were,

and

continue

be,

appropriate

and

they

agreed

continue

monitor

the

appropriateness

the

breakpoints.

For

the

Franklin

Mutual

Beacon

Fund

and

Franklin

Mutual

Quest

Fund,

the

trustees

believed

the

breakpoints

were,

and

continue

be,

appropriate

and

they

agreed

continue

monitor

the

appropriateness

the

breakpoints.

The

trustees

also

considered

the

effects

increase

assets

under

management

would

have

the

investment

management

fees

and

expense

ratio

each

Fund.

the

extent

further

economies

scale

may

realized

the

investment

manager

and

its

affiliates,

the

Board

believed

the

investment

management

fees

provide

sharing

benefits

with

each

Fund

and

its

shareholders.

CONCLUSION

Based

its

review,

consideration

and

evaluation

all

factors

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

each

Fund’s

investment

management

agreement

for

additional

one-year

period.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

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.

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.

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.


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*^,^†
Class A	$51	1.01%


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*^,^†
Class C	$88	1.76%


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*^,^†
Class A	$60	1.21%


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*^,^†
Class C	$98	1.96%


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*^,^†
Class R	$73	1.46%


Franklin Mutual Beacon Fund
Class Z [BEGRX]
Semi-Annual Shareholder Report \| June 30, 2026


Total Net Assets	$3,431,397,650
Total Number of Portfolio Holdings	36
Portfolio Turnover Rate	17.26%


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information


Franklin Mutual Beacon Fund
Class A [TEBIX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Beacon Fund
Class C [TEMEX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Beacon Fund
Class R6 [FMBRX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Global Discovery Fund
Class Z [MDISX]
Semi-Annual Shareholder Report \| June 30, 2026


Total Net Assets	$9,009,445,788
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)	65
Portfolio Turnover Rate	25.52%


Franklin Mutual Global Discovery Fund
Class A [TEDIX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Global Discovery Fund
Class C [TEDSX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Global Discovery Fund
Class R [TEDRX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Global Discovery Fund
Class R6 [FMDRX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual International Value Fund
Class Z [MEURX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual International Value Fund
Class A [TEMIX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual International Value Fund
Class C [TEURX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual International Value Fund
Class R [FMURX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual International Value Fund
Class R6 [FMEUX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Quest Fund
Class Z [MQIFX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Quest Fund
Class A [TEQIX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Quest Fund
Class C [TEMQX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Quest Fund
Class R [FMQSX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Quest Fund
Class R6 [FMQRX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Shares Fund
Class Z [MUTHX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Shares Fund
Class A [TESIX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Shares Fund
Class C [TEMTX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Shares Fund
Class R [TESRX]
Semi-Annual Shareholder Report \| June 30, 2026


Franklin Mutual Shares Fund
Class R6 [FMSHX]
Semi-Annual Shareholder Report \| June 30, 2026

By:	/s/ Christopher Kings
	Christopher Kings
	Chief Executive Officer – Finance and Administration

Date:	August 27, 2026

By:	/s/ Jeffrey White
	Jeffrey White
	Chief Financial Officer, Chief Accounting Officer and Treasurer