Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Franklin Mutual Shares VIP 1 Release date as of 2022-05-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Morningstar Report Overall Morningstar Rating™ What is this? As of --- Out of 177 Allocation--85%+ Equity Funds Morningstar® Style Box™ What is this? As of 2022-05-31 As of --- Total Fund Assets ($ Mil) 2,316.28 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: Allocation--85%+ Equity Funds in allocation categories seek to provide both income and capital appreciation by primarily investing in multiple asset classes, including stocks, bonds, and cash. These aggressive strategies typically allocate at least 10% to equities of foreign companies and prioritize capital appreciation over preservation. They typically expect volatility similar to a strategic equity exposure of more than 85%.

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 79.3 Non-U.S. Stocks 15.4 Bonds 3.9 Cash 1.3 Other 0.1 Data through 2022-05-31 Morningstar Equity Sectors % of Stocks Cyclical 33.63 Basic Materials 2.09 Consumer Cyclical 10.83 Financial Services 17.83 Real Estate 2.88 Sensitive 41.41 Communication Services 10.81 Energy 6.41 Industrials 10.90 Technology 13.29 Defensive 24.97 Consumer Defensive 6.09 Healthcare 17.59 Utilities 1.29 Data through 2022-05-31 Morningstar Fixed-Income Sectors % Fund Government 0.00 Corporate 65.22 Securitized 2.14 Municipal 0.00 Cash & Equivalents 32.64 Other 0.00 Data through 2022-05-31 Credit Analysis % Bonds AAA --- AA --- A --- BBB --- BB --- B --- Below B --- Not Rated --- Data through --- Holding Status Total Number of Stock Holdings 61 Total Number of Bond Holdings 11 % of Net Assets in Top 10 Holdings 25.26 Turnover % (as of 2021-12-31) 47.31 30 Day SEC Yield % --- Top Holdings Sector Country Maturity Date Market Value ($000) % of Net Assets BP PLC GBR --- 71,963 3.13 Charter Communications Inc Class A USA --- 68,832 3.00 T-Mobile US Inc USA --- 59,585 2.60 Global Payments Inc USA --- 59,089 2.57 CVS Health Corp USA --- 58,824 2.56 Fiserv Inc USA --- 55,432 2.41 The Kraft Heinz Co USA --- 54,603 2.38 Western Digital Corp USA --- 52,255 2.28 Novartis AG ADR CHE --- 50,513 2.20 D.R. Horton Inc USA --- 48,880 2.13 Data through 2022-05-31

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

Other Information Inception Date: 1996-11-08 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. Deborah A. Turner   (2001-08-01) Turner is a portfolio manager of Franklin Mutual. She joined Franklin Templeton Investments in 1996. Between 1993 and 1996, she was employed at Heine Securities Corporation, the Funds' former manager. She has more than 13 years of experience in the investment management industry. Investment Advisor(s) Franklin Mutual Advisers, LLC Issuer Franklin Templeton Investments Subadvisor(s) ---

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