Franklin Mutual Beacon Fund Q3 2025 Commentary
Summarize this article with:
Franklin Templeton4.62K FollowersFollow5ShareSavePlay(7min)CommentsSummaryFranklin Mutual Beacon Fund (Class Z without sales charges) underperformed its benchmark, the MSCI World Value Index, for the quarter ended September 30, 2025.Global equity markets, as measured by the MSCI World Index, climbed in US dollar terms during the third quarter, as a US interest-rate cut, solid corporate earnings and ongoing enthusiasm about artificial intelligence drove stocks higher.Stock selection in consumer staples, communication services and real estate supported relative returns.Security selection in health care, materials and information technology detracted from relative results.While we believe there are reasons to be optimistic about the markets, we think uncertainty could continue to generate pockets of volatility in the near term. Pawel Kacperek/iStock via Getty Images Key Takeaways Markets: Global equity markets, as measured by the MSCI World Index, climbed in US dollar terms during the third quarter, as a US interest-rate cut, solid corporate earnings and ongoing enthusiasm about artificial intelligence drove stocks higher. Stock This article was written byFranklin Templeton4.62K FollowersFollowFranklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of June 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.Quick InsightsWhat drove BEGRX’s underperformance relative to its benchmark in Q3 2025?Underperformance was driven by weak security selection in health care, materials, and IT, with Charter Communications, Haleon, and Progressive among the main detractors.How is BEGRX positioned to capitalize on European market developments?BEGRX sees opportunity in European policy shifts supporting competitiveness, spending, and growth, particularly as low valuations may offer attractive entry points despite short-term political and budget uncertainty.What is the fund’s approach to AI-related equity exposure given current market dynamics?While BEGRX recognizes AI’s efficiency potential, it remains cautious on the timeline and return expectations, focusing on fundamental value and avoiding overexposure to crowded trades.Recommended For You