Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Franklin Mutual Shares VIP 2 Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Morningstar Report Overall Morningstar Rating™ What is this? As of 2024-10-31 Out of 1084 Large Value Funds Morningstar® Style Box™ What is this? As of 2024-09-30 Total Fund Assets ($ Mil) 2,080.48 View Historical Morningstar Star Ratings and Definitions

Investment Objective & Strategy   The investment seeks capital appreciation; income is a secondary goal. The fund invests primarily in equity securities of U.S. and foreign companies that the investment manager believes are available at market prices less than their value based on certain recognized or objective criteria. The equity securities in which the fund invests are primarily common stock. To a lesser extent, it also invests in merger arbitrage securities and the debt and equity of distressed companies. The fund may invest a significant portion of its assets (up to 35%) in foreign securities, which may include sovereign debt and participations in foreign government debt.

Morningstar Category: Large Value Large-value portfolios invest primarily in big U.S. companies that are less expensive or growing more slowly than other large-cap stocks. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow).

Investment Risks There are no additional fund specific investment risks (e.g. liquidity risk, currency risk, foreign investment risk, etc.) associated with this fund beyond the normal risks generally associated with investing in a mutual fund.

Portfolio Profile Asset Allocation % of Net Assets U.S. Stocks 87.2 Non-U.S. Stocks 9.5 Bonds 3.0 Cash 0.2 Other 0.0 Data through 2024-09-30 Morningstar Equity Sectors % of Stocks Cyclical 33.48 Basic Materials 2.34 Consumer Cyclical 6.39 Financial Services 18.98 Real Estate 5.77 Sensitive 39.95 Communication Services 6.49 Energy 7.00 Industrials 15.87 Technology 10.59 Defensive 26.56 Consumer Defensive 6.77 Healthcare 16.07 Utilities 3.72 Data through 2024-09-30 Holding Status Total Number of Stock Holdings 57 Total Number of Bond Holdings 10 % of Net Assets in Top 10 Holdings 23.42 Turnover % (as of 2023-12-31) 50.67 30 Day SEC Yield % 1.72 Top Holdings Sector P/E % of Net Assets Bank of America Corp 15.15 2.84 JPMorgan Chase & Co 12.34 2.80 Medtronic PLC 30.05 2.52 Fiserv Inc 38.20 2.37 Chevron Corp 14.73 2.21 The Walt Disney Co 36.86 2.15 American Tower Corp --- 2.15 EOG Resources Inc 9.42 2.14 Global Payments Inc 19.57 2.12 Elevance Health Inc 14.77 2.12 Data through 2024-09-30

Principal Risks    Event-Driven Investment/Arbitrage Strategies, Foreign Securities, Loss of Money, Not FDIC Insured, Value Investing, Active Management, Market/Market Volatility, Other, Derivatives, Socially Conscious, Portfolio Diversification, Small Cap, Mid-Cap Show Risk Definitions

Other Information Inception Date: 1999-01-06 Portfolio Manager(s) Christian Correa   (2020-11-02) Christian Correa, CFA is a portfolio manager and director of research for Franklin Mutual Series. Mr. Correa has been a lead or co-lead portfolio manager of the Franklin Mutual Beacon Fund since 2007 and co-lead portfolio manager of the Franklin Mutual Global Discovery Fund since 2018. Prior to joining Franklin Mutual Series in 2003, he worked at Lehman Brothers Holdings Inc. He has more than a decade of investment experience. He holds a B.A. from Claremont McKenna College, an M.A. (economics) from Northwestern Univ. and is a graduate of Harvard Law School. Grace Hoefig   (2020-11-02) Grace Hoefig, Vice President and Portfolio Manager of Franklin Advisory Services. Ms. Hoefig joined Franklin Templeton in February 2008 as a research analyst. She has been in the investment industry for more than 20 years. Prior to joining Franklin Templeton, Ms. Hoefig was a managing director at AXIA Capital Management LLC., and has held senior analyst positions at Heine Securities Co., First Manhattan Co. and Neuberger & Berman. Investment Advisor(s) Franklin Mutual Advisers, LLC Issuer Franklin Templeton Investments Subadvisor(s) ---

Show Data Definitions © Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.



Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Franklin Mutual Shares VIP 2 Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Morningstar Ratings Morningstar Return Morningstar Risk Morningstar Rating Number of Funds 3-Year Below Avg Average 1084 5-Year Low Average 1022 10-Year Low Average 796 Overall Low Average 1084 Morningstar Category: Large Value | Number of Funds in Category: 1084 Data through 2024-10-31

Ratings reflect risk-adjusted performance and are derived from a weighted average of the performance figures associated with its three, five and ten-year (if applicable) time periods.

Volatility Measurements Standard Deviation 16.95 Mean 6.09 Sharpe Ratio 0.20 Trailing 3-Yr as of 2024-10-31

Modern Portfolio Theory Statistics Best Fit Index Morningstar US Mid Broad Value TR USD R-Squared 94 Beta 0.87 Alpha -0.80 Trailing 3-Yr as of 2024-10-31

Principal Risks    Event-Driven Investment/Arbitrage Strategies, Foreign Securities, Loss of Money, Not FDIC Insured, Value Investing, Active Management, Market/Market Volatility, Other, Derivatives, Socially Conscious, Portfolio Diversification, Small Cap, Mid-Cap Show Risk Definitions

Investment Risks There are no additional fund specific investment risks (e.g. liquidity risk, currency risk, foreign investment risk, etc.) associated with this fund beyond the normal risks generally associated with investing in a mutual fund.

Show Data Definitions © Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.



Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Franklin Mutual Shares VIP 2 Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Style Box Details for Stock Holdings Size Average Mkt Cap $Mil 61,743     Market Capitalization % of Portfolio Giant 12.36 Large 42.41 Medium 37.88 Small 7.35 Micro 0.00     Investment Valuation Stock Portfolio Forward P/E 12.4 Price/Book 2.0 Price/Sales 1.3 Price/Cash Flow 8.7 Dividend Yield 2.5 Long-Term Earnings 9.6 Historical Earnings 7.9 Sales Growth 9.3 Cash-Flow Growth 2.9 Book-Value Growth 4.7 As of 2024-09-30 Data as of 2024-09-30

Asset Allocation % of Net Assets U.S. Stocks 87.2 Non-U.S. Stocks 9.5 Bonds 3.0 Cash 0.2 Other 0.0 Data through 2024-09-30

Morningstar Equity Sectors % of Stocks Cyclical 33.48 Basic Materials 2.34 Consumer Cyclical 6.39 Financial Services 18.98 Real Estate 5.77 Sensitive 39.95 Communication Services 6.49 Energy 7.00 Industrials 15.87 Technology 10.59 Defensive 26.56 Consumer Defensive 6.77 Healthcare 16.07 Utilities 3.72 Data through 2024-09-30

Top 25 Holdings Total Number of Stock Holdings 57 Total Number of Bond Holdings 10 % of Net Assets in Top 10 Holdings 23.42 Turnover % (as of 2023-12-31) 50.67 30 Day SEC Yield % 1.72 Top 25 Holdings Sector P/E % of Net Assets Bank of America Corp 15.15 2.84 JPMorgan Chase & Co 12.34 2.80 Medtronic PLC 30.05 2.52 Fiserv Inc 38.20 2.37 Chevron Corp 14.73 2.21 The Walt Disney Co 36.86 2.15 American Tower Corp --- 2.15 EOG Resources Inc 9.42 2.14 Global Payments Inc 19.57 2.12 Elevance Health Inc 14.77 2.12 GSK PLC --- 2.09 Comcast Corp Class A 11.77 2.09 PNC Financial Services Group Inc 15.91 2.04 Charter Communications Inc Class A 10.46 1.98 Merck & Co Inc 21.41 1.98 Everest Group Ltd 5.55 1.93 Novartis AG ADR --- 1.91 Schlumberger Ltd 12.88 1.90 Voya Financial Inc 10.58 1.85 United Parcel Service Inc Class B --- 1.84 PPL Corp 28.81 1.83 Johnson Controls International PLC Registered Shares 31.74 1.83 CVS Health Corp 10.05 1.82 AerCap Holdings NV 7.54 1.81 BlackRock Inc 24.36 1.80 Data through 2024-09-30

Show Data Definitions © Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.



Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Franklin Mutual Shares VIP 2 Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Fees and Expenses Taken from prospectus dated 2024-05-01   Maximum Fees Administrative 0.15% Management 0.68% 12b-1 --- Actual Fees 12b-1 0.25% Management 0.67% Expense Ratio 0.93% (taken from annual report dated 2024-06-30) Total Annual Operating Expense 0.93%

Waiver Data Type Date % --- --- --- ---

Management Inception Date: 1999-01-06

Mngr Name Christian Correa Mngr Start Date 2020-11-02 Biography Christian Correa, CFA is a portfolio manager and director of research for Franklin Mutual Series. Mr. Correa has been a lead or co-lead portfolio manager of the Franklin Mutual Beacon Fund since 2007 and co-lead portfolio manager of the Franklin Mutual Global Discovery Fund since 2018. Prior to joining Franklin Mutual Series in 2003, he worked at Lehman Brothers Holdings Inc. He has more than a decade of investment experience. He holds a B.A. from Claremont McKenna College, an M.A. (economics) from Northwestern Univ. and is a graduate of Harvard Law School. Mngr Name Grace Hoefig Mngr Start Date 2020-11-02 Biography Grace Hoefig, Vice President and Portfolio Manager of Franklin Advisory Services. Ms. Hoefig joined Franklin Templeton in February 2008 as a research analyst. She has been in the investment industry for more than 20 years. Prior to joining Franklin Templeton, Ms. Hoefig was a managing director at AXIA Capital Management LLC., and has held senior analyst positions at Heine Securities Co., First Manhattan Co. and Neuberger & Berman. Investment Advisor(s) Franklin Mutual Advisers, LLC Web Site www.franklintempleton.com Issuer Franklin Templeton Investments Subadvisor(s) ---

Show Data Definitions © Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.



Morningstar Investment Profilessm: Disclosure Statement

Morningstar Rating, Risk and Return

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

For private funds, the Morningstar Rating presented is hypothetical, because Morningstar does not independently analyze private funds. Rather, the rating is assigned as a means to compare these funds with the universe of mutual funds that Morningstar rates. The evaluation of this investment does not affect the retail mutual fund data published by Morningstar.

Overall ratings represent a weighted average of specific time period (3-, 5- and 10-year) ratings.

The Morningstar Return rates a fund's performance relative to other managed products in its Morningstar Category. It is an assessment of a product's excess return over a risk-free rate (the return of the 90-day Treasury Bill) in comparison with the products in its Morningstar category. In each Morningstar category, the top 10% of products earn a High Morningstar Return (High), the next 22.5% Above Average (+Avg), the middle 35% Average (Avg), the next 22.5% Below Average (-Avg), and the bottom 10% Low (Low). Morningstar Return is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.

Morningstar Risk evaluates a fund's downside volatility relative to that of other products in its Morningstar Category. It is an assessment of the variations in monthly returns, with an emphasis on downside variations, in comparison with the products in its Morningstar category. In each Morningstar category, the 10% of products with the lowest measured risk are described as Low Risk (Low), the next 22.5% Below Average (-Avg), the middle 35% Average (Avg), the next 22.5% Above Average (+Avg), and the top 10% High (High). Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.

Franklin Mutual Shares VIP 2

Morningstar Ratings (Relative to Category)    Morningstar Return Morningstar Risk Morningstar Rating # of Funds 3-year Below Avg Average 1084 5-year Low Average 1022 10-year Low Average 796 Overall Low Average 1084 Morningstar Category : Large Value | Number of Funds in Category: 1084 Data through 2024-10-31

Risk Measures

R-squared reflects the percentage of an investment option's movements that are explained by movements in its benchmark index, showing the degree of correlation between the investment option and the benchmark.

Beta is a measure of an investment option's sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market. Alpha measures the difference between an investment option's actual returns and its expected performance, given its level of risk (as measured by beta).

The Sharpe ratio uses standard deviation and excess return to determine reward per unit of risk.

Standard deviation is a statistical measure of the volatility of the investment option's returns.

Mean represents the annualized three-year geometric return.

Morningstar Style BoxTM

The Morningstar Style Box reveals a fund's investment strategy as of the date noted on this report.

For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). A darkened cell in the style box matrix indicates the weighted average style of the portfolio.

For portfolios holding fixed-income investments, a Fixed Income Style Box is calculated. The vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. There are three credit categories - "High", "Medium", and "Low"; and there are three interest rate sensitivity categories - "Limited", "Moderate", and "Extensive"; resulting in nine possible combinations. As in the Equity Style Box, the combination of credit and interest rate sensitivity for a portfolio is represented by a darkened square in the matrix. Morningstar uses credit rating information from credit rating agencies (CRAs) that have been designated Nationally Recognized Statistical Rating Organizations (NRSROs) by the Securities and Exchange Commission (SEC) in the United States. For a list of all NRSROs, please visit https://www.sec.gov/ocr/ocr-current-nrsros.html. Additionally, Morningstar will use credit ratings from CRAs which have been recognized by foreign regulatory institutions that are deemed the equivalent of the NRSRO designation. To determine the rating applicable to a holding and the subsequent holding weighted value of a portfolio two methods may be employed. First is a common methodology approach where if a case exists such that two CRAs have rated a holding, the lower rating of the two should be applied; if three or more CRAs have rated a holding, the median rating should be applied; and in cases where there are more than two ratings and a median rating cannot be determined, the lower of the two middle ratings should be applied. Alternatively, if there is more than one rating available an average can be calculated from all and applied. Please Note: Morningstar, Inc. is not an NRSRO nor does it issue a credit rating on the fund. Credit ratings for any security held in a portfolio can change over time.

Morningstar uses the credit rating information to calculate a weighted-average credit quality value for the portfolio. This value is based only upon those holdings which are considered to be classified as "fixed income", such a government, corporate, or securitized issues. Other types of holdings such as equities and many, though not all, types of derivatives are excluded. The weighted-average credit quality value is represented by a rating symbol which corresponds to the long-term rating symbol schemas employed by most CRAs. Note that this value is not explicitly published but instead serves as an input in the Style Box calculation. This symbol is then used to map to a Style Box credit quality category of "low," "medium," or "high". Funds with a "low" credit quality category are those whose weighted-average credit quality is determined to be equivalent to the commonly used High Yield classification, meaning a rating below "BBB", portfolios assigned to the "high" credit category have either a "AAA" or "AA+" average credit quality value, while "medium" are those with an average rating of "AA-" inclusive to "BBB-". It is expected and intended that the majority of portfolios will be assigned a credit category of "medium".

For assignment to an interest-rate sensitivity category, Morningstar uses the average effective duration of the portfolio. From this value there are three distinct methodologies employed to determine assignment to category. Portfolio which are assigned to Morningstar municipal-bond categories employ static breakpoints between categories. These breakpoints are: "Limited" equal to 4.5 years or less, "Moderate" equal to 4.5 years to less than 7 years; and "Extensive" equal to more than 7 years. For portfolios assigned to Morningstar categories other than U.S. Taxable, including all domiciled outside the United States, static duration breakpoints are also used: "Limited" equals less than or equal to 3.5 years, "Moderate" equals greater than 3.5 years but less than or equal to 6 years, and "Extensive" is assigned to portfolios with effective durations of more than 6 years.

Note: Interest-rate sensitivity for non-U.S. domiciled portfolios (excluding those in Morningstar convertible categories) may be assigned using average modified duration when average effective duration is not available.

For portfolios Morningstar classifies as U.S. Taxable Fixed-Income, interest-rate sensitivity category assignment is based on the effective duration of the Morningstar Core Bond Index (MCBI). The classification assignment is dynamically determined relative to the benchmark index value. A "Limited" category will be assigned to portfolios whose average effective duration is between 25% to 75% of MCBI average effective duration, where the average effective duration is between 75% to 125% of the MCBI the portfolio will be classified as "Moderate", and those portfolios with an average effective duration value 125% or greater of the average effective duration of the MCBI will be classified as "Extensive".

Investment Risk

Foreign Securities Investment Options:/Emerging Market Investment Options: The investor should note that investment options that invest in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.

Sector Investment Options: The investor should note that investment options that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks.

Non-Diversified Investment Options: The investor should note that investment options that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of the increased concentration of investments.

Small Cap Investment Options: The investor should note that investment options that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average.

Mid Cap Investment Options: The investor should note that investment options that invest in companies with market capitalizations below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies.

High-Yield Bond Investment Options: The investor should note that investment options that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default.

Yield

The yield of an investment option refers to the income generated by an investment in that investment option over an identified period of time. The SEC 30-day yield refers to the income generated by an investment over an identified 30-day period. The SEC 30-day yield is calculated by dividing: (I) the net investment income per share of the investment option earned over a 30-day period; by (II) the maximum offering price per share of the investment option on the last day of the period. This number is then annualized using semi-annual compounding. This means that the amount of income generated during the 30-day period is assumed to be generated each month over a 12-month period and is reinvested every six months. The yield does not necessarily reflect income actually earned by investing in the investment option because of certain adjustments required by the SEC and, therefore, may not correlate to the dividends or other distributions paid to shareholders.