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Unaudited Semi-Annual ReportDecember 31, 2016

R.C.S. B35177

SOCIÉTÉ D’INVESTISSEMENT À CAPITAL VARIABLE

Franklin Templeton International Services S.à r.l.8A, rue Albert BorschetteL-1246 LuxembourgGrand Duchy of Luxembourgtel +352 (46) 66-67-1fax +352 (46) 66-76

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Franklin Templeton Investment Funds

FRANKLIN TEMPLETON INVESTMENT FUNDSsociété d’investissement à capital variable

U N A U D I T E D S E M I - A N N U A L R E P O RTF O R T H E P E R I O D E N D E D D E C E M B E R 3 1 , 2 0 1 6

This report shall not constitute an offer or a solicitation of an offer to buy shares of Franklin Templeton Investment Funds (the “Company”). Subscriptions are to be made on the basis of the current Explanatory Memorandum, its addenda and the relevant Product Key Facts Statement(s) accompanied by a copy of the latest available audited annual report and, if published thereafter, the latest unaudited semi-annual report.

Contents

General Information 4The Board of Directors 7Report of the Investment Managers 9Fund Performance 10Statement of Net Assets 12Statement of Operations and Changes in Net

Assets 30Statistical Information 48Notes to the Financial Statements 65Franklin Asia Credit Fund 183Franklin Biotechnology Discovery Fund 184Franklin Brazil Opportunities Fund 187Franklin Diversified Balanced Fund 188Franklin Diversified Conservative Fund 193Franklin Diversified Dynamic Fund 198Franklin Euro Government Bond Fund 201Franklin Euro High Yield Fund 202Franklin Euro Short Duration Bond Fund 205Franklin Euro Short-Term Money Market

Fund 207Franklin Euroland Fund 208Franklin European Fund 210Franklin European Corporate Bond Fund 212Franklin European Dividend Fund 214Franklin European Growth Fund 216Franklin European Income Fund 218Franklin European Small-Mid Cap Growth

Fund 220Franklin European Total Return Fund 221Franklin Flexible Alpha Bond Fund 223Franklin GCC Bond Fund 227Franklin Global Aggregate Bond Fund 228Franklin Global Aggregate Investment Grade

Bond Fund 230Franklin Global Convertible Securities Fund 231Franklin Global Equity Strategies Fund 233Franklin Global Fundamental Strategies Fund 238Franklin Global Growth Fund 245Franklin Global Growth and Value Fund 247Franklin Global High Income Bond Fund 251Franklin Global Listed Infrastructure Fund 254Franklin Global Multi-Asset Income Fund 256Franklin Global Real Estate Fund 261Franklin Global Small-Mid Cap Growth Fund 263Franklin Gold and Precious Metals Fund 264Franklin High Yield Fund 266Franklin Income Fund 271Franklin India Fund 275Franklin Japan Fund 277Franklin K2 Alternative Strategies Fund 279Franklin K2 Global Macro Opportunities

Fund 293Franklin K2 Long Short Credit Fund 294Franklin MENA Fund 296Franklin Natural Resources Fund 298Franklin NextStep Balanced Growth Fund 300

Franklin NextStep Conservative Fund 301Franklin NextStep Dynamic Growth Fund 302Franklin NextStep Growth Fund 303Franklin NextStep Moderate Fund 304Franklin NextStep Stable Growth Fund 305Franklin Real Return Fund 306Franklin Strategic Income Fund 307Franklin Technology Fund 315Franklin U.S. Dollar Liquid Reserve Fund 317Franklin U.S. Equity Fund 318Franklin U.S. Government Fund 319Franklin U.S. Low Duration Fund 320Franklin U.S. Opportunities Fund 327Franklin U.S. Small-Mid Cap Growth Fund 329Franklin U.S. Total Return Fund 332Franklin World Perspectives Fund 339Franklin Mutual Beacon Fund 344Franklin Mutual European Fund 347Franklin Mutual Global Discovery Fund 349Templeton Africa Fund 352Templeton ASEAN Fund 353Templeton Asian Bond Fund 355Templeton Asian Dividend Fund 356Templeton Asian Growth Fund 358Templeton Asian Smaller Companies Fund 360Templeton BRIC Fund 363Templeton China Fund 365Templeton Eastern Europe Fund 367Templeton Emerging Markets Fund 369Templeton Emerging Markets Balanced Fund 372Templeton Emerging Markets Bond Fund 376Templeton Emerging Markets Smaller

Companies Fund 379Templeton Euroland Fund 383Templeton European Fund 385Templeton Frontier Markets Fund 387Templeton Global Fund 389Templeton Global (Euro) Fund 392Templeton Global Balanced Fund 395Templeton Global Bond Fund 399Templeton Global Bond (Euro) Fund 402Templeton Global Currency Fund 404Templeton Global Equity Income Fund 405Templeton Global High Yield Fund 407Templeton Global Income Fund 413Templeton Global Smaller Companies Fund 418Templeton Global Total Return Fund 421Templeton Growth (Euro) Fund 425Templeton Korea Fund 428Templeton Latin America Fund 429Templeton Thailand Fund 431Additional Information 433Franklin Templeton Investments Office

Directory 437

FRANKLIN TEMPLETON INVESTMENT FUNDS

www.franklintempleton.lu Unaudited Semi-Annual Report 3

All the Funds marked with "^" above are not authorised for public distribution in Hong Kong as of 31 December 2016 and are not available to Hong Kong investors.

société d’investissement à capital variable8A, rue Albert Borschette, L-1246 Luxembourg, Grand Duchy of Luxembourg

(Registered with the registre de commerce et des sociétés, Luxembourg, under number B 35 177)

General Information (as at December 31, 2016)BOARD OF DIRECTORS:ChairmanGregory E. JohnsonChairman and Chief Executive OfficerFRANKLIN RESOURCES, INC.One Franklin ParkwaySan Mateo, CA 94403-1906, U.S.A.

DirectorsVijay C. AdvaniCo-President - Global Advisory ServicesFRANKLIN RESOURCES, INC.One Franklin ParkwaySan Mateo, CA 94403-1906, U.S.A.(date of resignation 31st December 2016)

Mark G. HoloweskoPresidentHOLOWESKO PARTNERS LTDShipston HouseP.O. Box N-7776, West Bay Street, Lyford Cay,Nassau, Bahamas

James J. K. HungPresident and Chief Executive OfficerASIA SECURITIES GLOBAL LTDRoom 63, 21st floor, New World Tower 118 Queen’s Road, CentralHong Kong

Dr. J. B. Mark MobiusExecutive ChairmanTEMPLETON EMERGING MARKETS GROUP7 Temasek Boulevard, # 38-03 Suntec Tower OneSingapore 038987

The Honourable Trevor G. TrefgarneChairmanENTREPRISE GROUP LIMITED11 High StreetAccra, Ghana

William C. P. LockwoodIndependent DirectorPoste restante, Avenue du Général de GaulleF-57570 Cattenom, France

MANAGEMENT COMPANY:FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l.8A, rue Albert Borschette, L-1246 LuxembourgGrand Duchy of Luxembourg

REGISTERED OFFICE:8A, rue Albert Borschette, L-1246 LuxembourgGrand Duchy of Luxembourg

PRINCIPAL DISTRIBUTOR:FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l.8A, rue Albert Borschette, L-1246 LuxembourgGrand Duchy of Luxembourg

INVESTMENT MANAGERS:FRANKLIN ADVISERS, INC.One Franklin ParkwaySan Mateo, CA 94403-1906, U.S.A.

FRANKLIN ALTERNATIVE STRATEGIES ADVISERS, LLCOne International Place, 25th FloorBoston, MA 02110, U.S.A.

FRANKLIN MUTUAL ADVISERS, LLC101 John F. Kennedy ParkwayShort Hills, NJ 07078-2789, U.S.A.

FRANKLIN TEMPLETON INSTITUTIONAL LLC280 Park Avenue,New York, NY 10020, U.S.A.

FRANKLIN TEMPLETON INVESTIMENTOS (Brasil) Ltda.Avenue Brigadeiro Faria Lima 3311, 5o andar,São Paulo 04538-133, Brazil

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDCannon Place, 78 Cannon StreetLondon EC4N 6HL, United Kingdom

FRANKLIN TEMPLETON INVESTMENT TRUST MANAGEMENT CO. LIMITED12 Youido-dong, Youngdungpo-gu,Seoul, Korea

FRANKLIN TEMPLETON INVESTMENTS CORP.200 King Street West, Suite 1500,Toronto, Ontario M5H 3T4, Canada

K2/D&S MANAGEMENT CO., LLC300 Atlantic Street, 12th FloorStamford, CT 06901, U.S.A.

CHILTON INVESTMENT COMPANY, LLC1290 East Main StreetStamford, CT 06902, U.S.A.

IMPALA ASSET MANAGEMENT LLC107 Cherry StreetNew Canaan, CT 06840, U.S.A.

JENNISON ASSOCIATES LLC466 Lexington AvenueNew York, NY 10017, U.S.A.

WELLINGTON MANAGEMENT COMPANY, LLP280 Congress StreetBoston, MA 02210, U.S.A.

P. SCHOENFELD ASSET MANAGEMENT L.P.1350 Avenue of the Americas, 21st FloorNew York, NY 10019, U.S.A.

EMSO ASSET MANAGEMENT LIMITEDIron Trades House, 21-14 Grosvenor PlaceLondon SW1X 7HF, United Kingdom

BASSO CAPITAL MANAGEMENT L.P.1266 East Main StreetStamford, CT 06902, U.S.A.

CHATHAM ASSET MANAGEMENT LLC26 Main Street, Suite 204Chatham, NJ 07928, U.S.A.

LAZARD ASSET MANAGEMENT LLC30 Rockfeller PlazaNew York, NY 10112, U.S.A.

LOOMIS SAYLES & COMPANY, L.P.One Financial Center, 27th FloorBoston, MA 02111, U.S.A.

GRAHAM CAPITAL MANAGEMENT L.P.40 Highland AvenueRowayton, CT 06853, U.S.A.

PORTLAND HILL ASSET MANAGEMENT LIMITED21 KnightsbridgeLondon SW1X 7LY, United Kingdom

ASPECT CAPITAL LIMITED10 Portman SquareLondon W1H 6AZ, United Kingdom

ELLINGTON GLOBAL ASSET MANAGEMENT, LLC53 Forest AvenueOld Greenwich, CT 06870, U.S.A.

APOLLO SA MANAGEMENT, LLC9 West 57th Street, Suite 4800New York, NY 10019, U.S.A.

LOGAN CIRCLE PARTNERS, L.P.1717 Arch Street, Suite 1500,Philadelphia, PA 19103, U.S.A

CANDLEWOOD INVESTMENT GROUP, LP555 Theodore Fremd, Suite C-303Rye, NY 10580, U.S.A.

HALCYON ARBITRAGE UCITS MANAGEMENT LP477 Madison Avenue, 8th FloorNew York, NY 10022, U.S.A

FRANKLIN TEMPLETON INVESTMENTS (ME) LIMITEDThe Gate, East Wing, Level 2,Dubai International Financial Centre,P.O. Box 506613, Dubai, United Arab Emirates

SUMITOMO MITSUI ASSET MANAGEMENT COMPANY LIMITED2-5-1 Atago Minato-kuTokyo 105-6228, Japan

TEMPLETON ASSET MANAGEMENT LTD.7 Temasek Boulevard# 38-03 Suntec Tower OneSingapore 038987

TEMPLETON GLOBAL ADVISORS LIMITEDP.O. Box N-7759Lyford Cay, Nassau, Bahamas

TEMPLETON INVESTMENT COUNSEL, LLC300 S.E. 2nd StreetFort Lauderdale, FL 33301, U.S.A.

DEPOSITARY AND LISTING AGENTJ.P. Morgan Bank LUXEMBOURG S.A.6C Route de Trèves, L-2633 SenningerbergGrand Duchy of Luxembourg

AUDITOR:PRICEWATERHOUSECOOPERS, Société coopérative2, rue Gerhard Mercator, L-2182 LuxembourgGrand Duchy of Luxembourg

LEGAL ADVISERS:ELVINGER, HOSS & PRUSSEN2, place Winston Churchill, L-1340 LuxembourgGrand Duchy of Luxembourg


4 Unaudited Semi-Annual Report www.franklintempleton.lu

INVESTMENT MANAGERS PER FUND:Franklin Asia Credit FundCo-Investment Managers

FRANKLIN ADVISERS, INC.FRANKLIN TEMPLETON INSTITUTIONAL, LLCTEMPLETON ASSET MANAGEMENT LTD.

Franklin Biotechnology Discovery FundFRANKLIN ADVISERS, INC.

Franklin Brazil Opportunities FundFRANKLIN TEMPLETON INVESTIMENTOS (Brazil) Ltda.

Franklin Diversified Balanced FundLead Investment Manager

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDInvestment Co-Manager

FRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin Diversified Conservative FundLead Investment Manager

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDInvestment Co-Manager

FRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin Diversified Dynamic FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin Euro Government Bond FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin Euro High Yield FundCo-Investment Managers

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDFRANKLIN ADVISERS, INC.

Franklin Euro Short Duration Bond FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin Euro Short-Term Money Market FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin Euroland FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin European FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin European Corporate Bond FundCo-Investment Managers

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDFRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin European Dividend FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin European Growth FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin European Income FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin European Small-Mid Cap Growth FundFRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin European Total Return FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Franklin Flexible Alpha Bond FundCo-Investment Managers

FRANKLIN ADVISERS, INC.FRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin GCC Bond FundFRANKLIN TEMPLETON INVESTMENTS (ME) LIMITED

Franklin Global Aggregate Bond FundCo-Investment Managers


Franklin Global Aggregate Investment Grade Bond FundCo-Investment Managers


Franklin Global Convertible Securities FundFRANKLIN ADVISERS, INC.

Franklin Global Equity Strategies FundCo-Investment Managers

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDTEMPLETON ASSET MANAGEMENT LTD.FRANKLIN ADVISERS, INC.TEMPLETON GLOBAL ADVISORS LIMITEDFRANKLIN MUTUAL ADVISERS, LLC

Franklin Global Fundamental Strategies FundCo-Investment Managers

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDFRANKLIN ADVISERS, INC.TEMPLETON GLOBAL ADVISORS LIMITEDFRANKLIN MUTUAL ADVISERS, LLC

Franklin Global Growth FundFRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin Global Growth and Value FundLead Investment Manager

FRANKLIN ADVISERS, INC.Investment Co-Managers

FRANKLIN TEMPLETON INSTITUTIONAL, LLCTEMPLETON GLOBAL ADVISORS LIMITED

Franklin Global High Income Bond FundFRANKLIN ADVISERS, INC.

Franklin Global Listed Infrastructure FundFRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin Global Multi-Asset Income FundLead Investment Manager

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDInvestment Co-Managers

FRANKLIN TEMPLETON INSTITUTIONAL, LLCTEMPLETON ASSET MANAGEMENT LTD.FRANKLIN ALTERNATIVE STRATEGIES ADVISERS, LLC

Franklin Global Real Estate FundFRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin Global Small-Mid Cap Growth FundFRANKLIN TEMPLETON INSTITUTIONAL, LLC

Franklin Gold and Precious Metals FundFRANKLIN ADVISERS, INC.

Franklin High Yield FundFRANKLIN ADVISERS, INC.

Franklin Income FundFRANKLIN ADVISERS, INC.

Franklin India FundCo-Investment Managers

TEMPLETON ASSET MANAGEMENT LTD.FRANKLIN ADVISERS, INC.

Franklin Japan FundLead Investment Manager

FRANKLIN ADVISERS, INC.Sub-Investment Manager

SUMITOMO MITSUI ASSET MANAGEMENT COMPANY LIMITED

Franklin K2 Alternative Strategies FundLead Investment Manager

K2/D&S MANAGEMENT CO., LLCSub-Investment Managers

CHILTON INVESTMENT COMPANY, LLCIMPALA ASSET MANAGEMENT LLCJENNISON ASSOCIATES LLCWELLINGTON MANAGEMENT COMPANY, LLPP. SCHOENFELD ASSET MANAGEMENT L.P.EMSO ASSET MANAGEMENT LIMITEDBASSO CAPITAL MANAGEMENT L.P.CHATHAM ASSET MANAGEMENT LLCLAZARD ASSET MANAGEMENT LLCLOOMIS SAYLES & COMPANY, L.P.GRAHAM CAPITAL MANAGEMENT L.P.PORTLAND HILL ASSET MANAGEMENT LIMITEDHALCYON ARBITRAGE UCITS MANAGEMENT LP

Franklin K2 Global Macro Opportunities FundLead Investment Manager


ASPECT CAPITAL LIMITEDEMSO ASSET MANAGEMENT LIMITEDGRAHAM CAPITAL MANAGEMENT L.P.

Franklin K2 Long Short Credit FundLead Investment Manager


ELLINGTON GLOBAL ASSET MANAGEMENT, LLCAPOLLO SA MANAGEMENT, LLCLOGAN CIRCLE PARTNERS, L.P.CANDLEWOOD INVESTMENT GROUP, LPEMSO ASSET MANAGEMENT LIMITEDCHATHAM ASSET MANAGEMENT LLC

Franklin MENA FundFRANKLIN ADVISERS, INC.

Franklin Natural Resources FundFRANKLIN ADVISERS, INC.

Franklin NextStep Balanced Growth FundCo-Investment Managers

FRANKLIN ADVISERS, INC.FRANKLIN TEMPLETON INVESTMENTS CORP.

Franklin NextStep Conservative FundCo-Investment Managers

FRANKLIN ADVISERS, INC.FRANKLIN TEMPLETON INVESTMENTS CORP.K2/D&S MANAGEMENT CO., LLC

Franklin NextStep Dynamic Growth FundCo-Investment Managers



General Information (as at December 31, 2016) (continued)


INVESTMENT MANAGERS PER FUND (continued):Franklin NextStep Growth FundCo-Investment Managers


Franklin NextStep Moderate FundCo-Investment Managers


Franklin NextStep Stable Growth FundCo-Investment Managers


Franklin Real Return FundFRANKLIN ADVISERS, INC.

Franklin Strategic Income FundFRANKLIN ADVISERS, INC.

Franklin Technology FundFRANKLIN ADVISERS, INC.

Franklin U.S. Dollar Liquid Reserve FundFRANKLIN ADVISERS, INC.

Franklin U.S. Equity FundFRANKLIN ADVISERS, INC.

Franklin U.S. Government FundFRANKLIN ADVISERS, INC.

Franklin U.S. Low Duration FundFRANKLIN ADVISERS, INC.

Franklin U.S. Opportunities FundFRANKLIN ADVISERS, INC.

Franklin U.S. Small-Mid Cap Growth FundFRANKLIN ADVISERS, INC.

Franklin U.S. Total Return FundFRANKLIN ADVISERS, INC.

Franklin World Perspectives FundLead Investment Manager

FRANKLIN ADVISERS, INC.Investment Co-Managers

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDFRANKLIN TEMPLETON INVESTMENTS CORP.FRANKLIN TEMPLETON INVESTMENTS (ME) LIMITEDFRANKLIN TEMPLETON INVESTIMENTOS (Brasil) Ltda.FRANKLIN TEMPLETON INVESTMENT TRUST MANAGEMENT CO.LIMITEDTEMPLETON ASSET MANAGEMENT LTD.

Franklin Mutual Beacon FundFRANKLIN MUTUAL ADVISERS, LLC

Franklin Mutual European FundFRANKLIN MUTUAL ADVISERS, LLC

Franklin Mutual Global Discovery FundFRANKLIN MUTUAL ADVISERS, LLC

Templeton Africa FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton ASEAN FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton Asian Bond FundFRANKLIN ADVISERS, INC.

Templeton Asian Dividend FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton Asian Growth FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton Asian Smaller Companies FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton BRIC FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton China FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton Eastern Europe FundInvestment Managers

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDTEMPLETON ASSET MANAGEMENT LTD.

Templeton Emerging Markets FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton Emerging Markets Balanced FundCo-Investment Managers

TEMPLETON ASSET MANAGEMENT LTD.FRANKLIN ADVISERS, INC.

Templeton Emerging Markets Bond FundFRANKLIN ADVISERS, INC.

Templeton Emerging Markets Smaller Companies FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton Euroland FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Templeton European FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Templeton Frontier Markets FundCo-Investment Managers

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDTEMPLETON ASSET MANAGEMENT LTD.

Templeton Global FundTEMPLETON GLOBAL ADVISORS LIMITED

Templeton Global (Euro) FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Templeton Global Balanced FundCo-Investment Managers

FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDFRANKLIN ADVISERS, INC.

Templeton Global Bond FundFRANKLIN ADVISERS, INC.

Templeton Global Bond (Euro) FundFRANKLIN ADVISERS, INC.

Templeton Global Currency FundFRANKLIN ADVISERS, INC.

Templeton Global Equity Income FundFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED

Templeton Global High Yield FundFRANKLIN ADVISERS, INC.

Templeton Global Income FundFRANKLIN ADVISERS, INC.TEMPLETON GLOBAL ADVISORS LIMITED

Templeton Global Smaller Companies FundTEMPLETON INVESTMENT COUNSEL, LLC

Templeton Global Total Return FundFRANKLIN ADVISERS, INC.

Templeton Growth (Euro) FundTEMPLETON GLOBAL ADVISORS LIMITED

Templeton Korea FundTEMPLETON ASSET MANAGEMENT LTD.

Templeton Latin America FundInvestment Managers

FRANKLIN TEMPLETON INVESTIMENTOS (Brasil) Ltda.TEMPLETON ASSET MANAGEMENT LTD.

Templeton Thailand FundTEMPLETON ASSET MANAGEMENT LTD.


General Information (as at December 31, 2016) (continued)


The Board

ChairmanGregory E. Johnson

Gregory Johnson (55) was appointed to the Board on November 28, 2003. He is Chairman, President and Chief Executive Officerof Franklin Resources, Inc. and serves on the Board of Directors. He is also President of Templeton Worldwide, Inc., ChiefExecutive Officer and President of Templeton International, Inc. and serves as a Director for a number of subsidiaries of FranklinResources, Inc. He is a member of a number of Franklin Templeton’s International Fund Boards. Mr. Johnson joined Franklin in1986 after working as a senior accountant for Coopers & Lybrand. He has served as President and Chairman of the Board forFranklin Templeton Distributors, Inc., President of Franklin Investment Advisory, LLC, President of FT Trust Company, VicePresident of Franklin Advisers, Inc., co-portfolio manager of Franklin Income Fund and Franklin Utilities Fund and as aninvestment analyst.

DirectorsMark G. HoloweskoMark Holowesko (56) was appointed to the Board on November 30, 1994. Mark Holowesko is the founding Partner and ChiefExecutive Officer of Holowesko Partners Ltd (HPL). Mark launched the firm in the fall of 2000, under the name of TempletonCapital Advisors, to serve the needs of institutional and high-net-worth investors. Subsequently renamed Holowesko Partners,under Mark’s leadership HPL has enjoyed steady and consistent growth and now stands as one of the premier global equity hedgefirms in the industry.

Mark’s investment career began in 1985 when he joined Templeton Global Advisors as a research analyst. By 1987, he hadassumed the day-to-day management of all portfolios previously managed by Sir John Templeton, including the TempletonGrowth Fund and the Templeton Foreign Fund. In 1989, Mark became the Director of Research of the Templeton Global EquityFunds and later, in 1996, assumed the role of Chief Investment Officer.

Mark served as a member of the Executive Committee of Templeton, Galbraith & Hansberger from 1987 to 1992 and as amember of the Executive Committee of Franklin Resources from 1992 to 2000. Mark was Director, President & Head ofInvestments of Templeton Global Advisors Ltd. from 1992 to 2000.

Currently, Mark is Chairman of the Investment Committee of First Trust Bank, an offshore entity responsible for managing theassets of two of Sir John Templeton’s Foundations.

James J. K. HungJames Hung (70) was appointed to the Board on November 29, 2002. He is the Chairman and Chief Executive Officer (“CEO”)of Xinya Investment Group, China, a real estate development and investment group in Mainland China, Hong Kong and Taiwan.He is also a Director and major shareholder of Security Bank in the Philippines and the Director of Franklin Templeton FundManagement Company in Shanghai, a joint venture of Franklin Templeton and the Sealand Securities Company, China. Hisprevious experience includes working for Asia Securities Inc. (Taiwan) as the Chairman and CEO. He has also previously been theDirector of Yi-Min Fund Management Co., (China), H&Q Venture Capital Inc. (Taiwan), Taiwan Index Fund Inc. (Luxembourg)and Vietnam Fund Inc. (Guernsey).

Dr. J. B. Mark MobiusDr. Mark Mobius, Ph.D. (80) was appointed to the Board at inception. He is Executive Chairman of Templeton EmergingMarkets Group, currently directs analysts based in Templeton’s 18 emerging markets offices and manages the emerging marketsportfolios. Dr. Mobius has spent more than 40 years working in emerging markets all over the world. He joined FranklinTempleton Investments in 1987 as president of the Templeton Emerging Markets Fund, Inc. Dr. Mobius was named by Asiamoneymagazine in 2006 as one of their “Top 100 Most Powerful and Influential People.” Asiamoney said, he “...boasts one of thehighest profiles of any investor in the region and is regarded by many in the financial industry as one of the most successfulemerging markets investors over the last 20 years. Despite tough times during the financial crisis nine years ago, he still commandsa strong following in the investment world and is influencing the direction of billions of investment dollars.” Other awardsinclude: (1) “2010 Africa Investor Index Series Awards” by African Investor, (2) “Emerging Markets Equity Manager of the Year2001” by International Money Marketing, (3) “Ten Top Money Managers of the 20th Century” in a survey by the Carson Groupin 1999, (4) “Number One Global Emerging Market Fund” in the 1998 Reuters Survey, (5) “1994 First in Business MoneyManager of the Year” by CNBC, (6) “Closed-End Fund Manager of the Year” in 1993 by Morningstar and, (7) “Investment TrustManager of the Year 1992” by Sunday Telegraph.

Dr. Mobius is also the author of the following books: Trading with China, The Investor’s Guide to Emerging Markets, Mobius onEmerging Markets, Passport to Profits, Equities – An Introduction to the Core Concepts, Mutual Funds – An Introduction to theCore Concepts, Foreign Exchange – An Introduction to the Core Concepts, Bonds – An Introduction to the Core Concepts, MarkMobius – An Illustrated Biography and The Little Book of Emerging Markets.

The Honourable Trevor G. TrefgarneThe Honourable Trevor Trefgarne (73) was appointed to the Board of Franklin Templeton Investment Funds on November 29,2002. He is Chairman of Enterprise Group Limited, Ghana, and has been Director of a number of U.K. listed investment fundsincluding Templeton Emerging Markets Investment Trust, Recovery Trust (Chairman) and Gartmore High Income Trust. He hasextensive experience of the management of listed companies in the U.K. and Africa.


The Board of Directors


The Board (continued)

William C. P. LockwoodWilliam Lockwood (60) was appointed to the Board of Franklin Templeton Investment Funds on December 1, 2014. He joinedFranklin Templeton in 1992 and served as General Manager of the Franklin Templeton Luxembourg subsidiary and FranklinTempleton Investment Funds until December 2005. From December 2005 until January 2014, he was Conducting Officer ofFranklin Templeton Investment Funds. The Conducting Officer role was a management, oversight and governance role under theEU UCITS legislation reporting directly to the Board of Franklin Templeton Investment Funds. Mr Lockwood has been workingin the financial services industry in Luxembourg since 1982. He is a Scottish Chartered Accountant and a Member of theChartered Institute for Securities & Investment, London. He has served as a director and international vice chairman of theLuxembourg Fund Industry Association (ALFI) and as a council member of the Institute of Chartered Accountants of Scotland.


The Board of Directors (continued)


In the six months ended 31 December, global economic growth was lifted by strengthening economic data and reboundingcorporate profits in the United States, signs of stabilisation in China’s economy and steadily improving growth in Europeunderpinned by continuing accommodative monetary policy. However, intensifying protectionism and nationalist sentiment in anumber of developed markets, notably in Europe and the United States, revealed a perturbing level of social dissatisfaction thatcast a shadow over the relatively positive economic environment.

Crude oil prices, a leading indicator of global economic activity, rose overall during the review period, though price movementswere uneven as the supply overhang persisted despite well shut-downs by a number of producers and rising demand resulting fromincreased global economic activity. Finally in November, the Organization of the Petroleum Exporting Countries (OPEC) andRussia, a non-OPEC super producer, agreed to freeze production levels for six months beginning January 2017, setting prices onan upward course and raising hopes that supply and demand would be brought into balance during 2017.

Over the six-month period, the resilience of the capital markets was once again tested by major political changes. The UK financialmarkets entered the review period roiled by the Brexit vote, but the downturn was short-lived as the appointment of a new UKprime minister, monetary easing measures by the Bank of England (BOE) and uninterrupted growth in the domestic economyprovided support. Euro zone markets were bookended by Brexit-induced volatility at the beginning of the review period and theDecember failure of the Italian government to approve a package of constitutional reforms, which led to the resignation of theprime minister. At its December meeting, the European Central Bank (ECB) announced an extension of its monetary easingprogram to at least the end of 2017 and predicted inflation would remain below the bank’s 2% target until at least 2019.

Asian equity markets collectively registered gains for the first half of the review period, aided by the announcement of a fiscalstimulus package in Japan and hopes of additional stimulus measures from the People’s Bank of China. Economic growth wasrelatively strong for the largest economies in the region. China’s industrial production grew 6.2% from a year earlier in Novembercompared with a 6.1% increase in October, and industrial profits jumped 14.5% in November from a year earlier, compared withthe 9.8% gain in October. Japan’s annualized gross domestic product (GDP) increased significantly in the third quarter of calendar2016 compared to the previous quarter, mainly due to rising exports.

The most notable development in the review period was undoubtedly the US presidential election campaign in the first week ofNovember, which culminated in the unexpected victory of Donald Trump after a contentious campaign. Once again, global equitymarkets surprised to the upside as a sharp initial selloff in the immediate aftermath quickly reversed course after a matter of days.By month’s end most equity markets had rallied, led by US markets that surged in reaction to the president-elect’s pro-growth,pro-business platform and mounting evidence of strong domestic economic growth.

Global fixed income markets responded to the US election results with rising yields and a selloff in bonds that lingered throughoutmost of November. In the United States, yields spiked sharply higher immediately following the election as markets appeared torapidly shift towards the view that inflation pressures were rising. The US Federal Reserve evidently concurred, raising its targetrange for the overnight rate by 0.25 basis points in December and hinting at the strong possibility of at least two more increases in2017. Even in Japan, yields on 10-year government bonds moved into positive territory by period-end as the Bank of Japan raisedits assessment of the economy for the first time since 2015. For local reasons, India was a notable exception to this pattern ofrising yields. In a move designed to discourage tax evasion, the government announced a withdrawal of more than 85% of theexisting circulating banknotes. The collected cash was invested into the bond market, driving down benchmark government bondyields.

Apprehensions surrounding an increased likelihood of protectionist trade policies have been expressed in many quarters,especially amongst emerging markets; however, we believe domestic demand and reform remain the secular drivers of emergingmarkets as a class, India being a good example. At the same time, it is worth noting that the pattern of global trade has graduallyslowed in recent years, and we foresee a continuation of this trend.

In Europe, we expect regional politics will continue to exert a strong influence on capital markets in 2017, with federal electionsscheduled for France and Germany and the UK’s upcoming exit from the EU weighing on sentiment. In addition, we are mindfulof the impact of an anticipated spike in UK inflation next year on consumers.

Globally, the past six months witnessed a notable shift in focus from the first half of the year, as the disproportionate emphasis oncentral bank policy gradually gave way to a sense that fiscal stimulus may be a more effective tool for boosting economic growthand creating jobs. Fiscal expansion was a key theme during the US presidential election campaign and a number of countries,including the United Kingdom, Japan and Australia indicated they were considering complementing ongoing accommodativemonetary policy with government spending plans in specific areas such as house building and infrastructure. Whilst the increasedeconomic activity would potentially be supportive for equities, we expect it may be accompanied by higher market volatility overthe coming months.

THE INVESTMENT MANAGERSJanuary, 2017


Report of the Investment Managers– Six Months to December 31, 2016

The information stated in this report represents historical data and is not an indication of future results.


ReferenceShareClass

LaunchDate

6Months

%

1Year%

3Years

%

5Years

%

10Years

%

SinceLaunch

%

Franklin Asia Credit Fund A (acc) USD 17 Nov 14 0.0 6.9 - - - 5.0

Franklin Biotechnology Discovery Fund A (acc) USD 03 Apr 00 6.8 (17.9) 16.1 141.8 209.3 170.6

Franklin Brazil Opportunities Fund A (acc) USD 27 Jul 12 6.9 13.9 (0.6) - - 2.5

Franklin Diversified Balanced Fund A (acc) EUR 23 Mar 15 1.4 (0.2) - - - (5.5)

Franklin Diversified Conservative Fund A (acc) EUR 23 Mar 15 (0.1) 0.7 - - - (3.9)

Franklin Diversified Dynamic Fund A (acc) EUR 23 Mar 15 2.6 (1.3) - - - (7.0)

Franklin Euro Government Bond Fund A (Ydis) EUR 08 Jan 99 (1.8) 0.2 13.5 27.7 39.2 72.3

Franklin Euro High Yield Fund A (Ydis) EUR 17 Apr 00 4.6 6.6 10.7 45.5 52.1 84.6

Franklin Euro Short Duration Bond Fund A (acc) EUR 21 Feb 14 0.4 0.7 - - - 2.5

Franklin Euro Short-Term Money Market Fund A (acc) EUR 23 Oct 09 (0.2) (0.4) (0.6) (0.4) - 0.6

Franklin Euroland Fund A (acc) EUR 28 Nov 08 12.2 4.3 15.8 71.7 - 97.9

Franklin European Fund A (acc) EUR 29 Jul 11 8.1 (0.6) 8.0 53.8 - 47.6

Franklin European Corporate Bond Fund A (acc) EUR 30 Apr 10 1.4 4.7 11.3 32.1 - 30.2

Franklin European Dividend Fund A (acc) EUR 29 Jul 11 9.1 2.5 17.6 62.2 - 59.1

Franklin European Growth Fund A (acc) EUR 29 Dec 00 10.3 4.1 8.2 68.7 72.2 56.7

Franklin European Income Fund A (acc) EUR 17 Nov 14 3.7 2.1 - - - 11.2

Franklin European Small-Mid Cap Growth Fund A (acc) EUR 03 Dec 01 7.6 (8.2) 8.2 92.1 72.0 240.0

Franklin European Total Return Fund A (acc) EUR 29 Aug 03 1.0 3.8 16.4 38.1 33.5 51.8

Franklin Flexible Alpha Bond Fund A (acc) USD 18 Mar 16 0.7 - - - - 1.1

Franklin GCC Bond Fund A (acc) USD 30 Aug 13 1.5 5.7 15.8 - - 20.7

Franklin Global Aggregate Bond Fund A (acc) USD 29 Oct 10 (5.8) (3.1) (2.8) 5.4 - 1.5

Franklin Global Aggregate Investment Grade Bond Fund A (acc) USD 22 Jun 12 (6.4) (3.1) (3.9) - - 0.0

Franklin Global Convertible Securities Fund A (acc) USD 24 Feb 12 2.3 4.6 0.3 - - 17.9

Franklin Global Equity Strategies Fund A (acc) USD 15 May 08 8.7 9.0 (4.7) 28.4 - 11.6

Franklin Global Fundamental Strategies Fund A (acc) USD 25 Oct 07 8.9 6.9 (1.3) 35.2 - 31.7

Franklin Global Growth Fund A (acc) USD 29 Dec 00 3.3 (1.3) (0.4) 41.4 28.3 39.3

Franklin Global Growth and Value Fund A (acc) USD 09 Sep 02 7.9 1.9 (0.7) 47.3 27.9 146.7

Franklin Global High Income Bond Fund A (acc) USD 13 Jul 12 6.6 13.8 (4.8) - - 16.2

Franklin Global Listed Infrastructure Fund A (acc) USD 26 Apr 13 (3.9) 8.4 9.7 - - 14.4

Franklin Global Multi-Asset Income Fund A (acc) EUR 26 Apr 13 2.1 3.7 20.0 - - 17.7

Franklin Global Real Estate Fund A (acc) USD 29 Dec 05 (6.6) (0.7) 12.3 43.3 (8.0) 14.1

Franklin Global Small-Mid Cap Growth Fund A (acc) USD 15 Apr 02 4.2 (4.9) (8.5) 51.7 54.8 193.4

Franklin Gold and Precious Metals Fund A (acc) USD 30 Apr 10 (21.7) 52.3 6.6 (53.7) - (54.6)

Franklin High Yield Fund A (Mdis) USD 01 Mar 96 8.5 17.7 2.1 24.2 54.8 167.8

Franklin Income Fund A (Mdis) USD 01 Jul 99 6.9 13.0 3.7 28.7 42.6 154.7

Franklin India Fund A (acc) USD 25 Oct 05 (2.5) 1.9 36.2 58.7 82.2 206.2

Franklin Japan Fund A (acc) JPY 01 Sep 00 19.7 (5.6) 12.4 106.2 (27.5) (16.2)

Franklin K2 Alternative Strategies Fund A (acc) USD 15 Sep 14 2.9 3.0 - - - 5.7

Franklin K2 Global Macro Opportunities Fund A (acc) USD 04 Nov 16 - - - - - 0.0

Franklin K2 Long Short Credit Fund A (acc) USD 02 Dec 16 - - - - - 1.3

Franklin MENA Fund A (acc) USD 16 Jun 08 4.7 (5.4) (8.2) 32.9 - (44.3)

Franklin Natural Resources Fund A (acc) USD 12 Jul 07 9.9 32.5 (25.3) (23.8) - (27.9)

Franklin NextStep Balanced Growth Fund A (acc) USD 05 Feb 16 1.0 - - - - 9.1

Franklin NextStep Conservative Fund A (acc) USD 05 Feb 16 (0.1) - - - - 5.7

Franklin NextStep Dynamic Growth Fund A (acc) USD 05 Feb 16 1.6 - - - - 10.9

Franklin NextStep Growth Fund A (acc) USD 05 Feb 16 3.4 - - - - 10.9

Franklin NextStep Moderate Fund A (acc) USD 05 Feb 16 2.7 - - - - 9.9

Franklin NextStep Stable Growth Fund A (acc) USD 05 Feb 16 (1.0) - - - - 4.8

Franklin Real Return Fund A (acc) USD 30 Apr 10 (0.4) 3.6 (3.7) (0.2) - 2.8

Franklin Strategic Income Fund A (acc) USD 12 Jul 07 2.1 6.6 2.1 17.0 - 48.3

Franklin Technology Fund A (acc) USD 03 Apr 00 8.8 7.0 30.6 80.7 136.5 22.5

Franklin U.S. Dollar Liquid Reserve Fund A (Mdis) USD 01 Jun 94 0.1 0.1 (0.2) (0.5) 4.8 58.2


Fund PerformancePercentage Change to December 31, 2016


ReferenceShareClass

LaunchDate

6Months

%

1Year%

3Years

%

5Years

%

10Years

%

SinceLaunch

%

Franklin U.S. Equity Fund A (acc) USD 01 Jul 99 11.6 4.7 13.0 58.4 52.7 142.2

Franklin U.S. Government Fund A (Mdis) USD 28 Feb 91 (1.5) 0.2 4.2 3.1 35.1 169.1

Franklin U.S. Low Duration Fund A (Mdis) USD 29 Aug 03 1.1 2.4 2.4 6.7 15.1 25.1

Franklin U.S. Opportunities Fund A (acc) USD 03 Apr 00 4.8 (2.4) 9.2 65.5 90.4 17.3

Franklin U.S. Small-Mid Cap Growth Fund A (acc) USD 29 Dec 00 4.5 3.1 5.1 56.8 68.3 90.8

Franklin U.S. Total Return Fund A (acc) USD 29 Aug 03 (1.6) 2.4 5.6 11.6 39.4 60.8

Franklin World Perspectives Fund A (acc) USD 14 Oct 08 7.3 1.9 4.4 50.2 - 94.5

Franklin Mutual Beacon Fund A (acc) USD 07 Jul 97 12.3 15.0 17.2 68.6 39.2 227.0

Franklin Mutual European Fund A (acc) EUR 03 Apr 00* 12.0 (0.7) 3.9 53.1 26.2 111.9

Franklin Mutual Global Discovery Fund A (acc) USD 25 Oct 05 11.0 9.4 (0.9) 44.3 44.3 79.3

Templeton Africa Fund A (acc) USD 04 May 12 (4.8) (9.1) (40.8) - - (25.8)

Templeton ASEAN Fund A (acc) USD 17 Nov 14 (5.0) 7.3 - - - (17.9)

Templeton Asian Bond Fund A (acc) USD 25 Oct 05 3.1 1.9 (4.7) 2.0 40.2 70.7

Templeton Asian Dividend Fund A (acc) USD 26 Apr 13 (2.2) (1.9) (13.5) - - (14.0)

Templeton Asian Growth Fund A (Ydis) USD 30 Jun 91 13.1 19.5 (6.3) 0.6 45.9 227.0

Templeton Asian Smaller Companies Fund A (acc) USD 14 Oct 08 0.8 3.2 5.4 52.7 - 275.6

Templeton BRIC Fund A (acc) USD 25 Oct 05 8.4 14.1 (11.4) (10.4) (19.8) 31.2

Templeton China Fund A (acc) USD 01 Sep 94 4.8 4.6 (8.0) (0.7) 26.0 131.4

Templeton Eastern Europe Fund A (acc) EUR 10 Nov 97 14.3 20.4 1.6 14.5 (35.8) 151.7

Templeton Emerging Markets Fund A (Ydis) USD 28 Feb 91 5.6 16.7 (13.8) (5.0) (4.4) 195.6

Templeton Emerging Markets Balanced Fund A (acc) USD 29 Apr 11 5.3 14.8 (8.1) (2.9) - (16.9)

Templeton Emerging Markets Bond Fund A (Qdis) USD 05 Jul 91 5.8 9.9 (0.9) 16.5 69.5 726.0

Templeton Emerging Markets Smaller Companies Fund A (acc) USD 18 Oct 07 2.4 2.7 8.8 44.0 - (2.2)

Templeton Euroland Fund A (acc) EUR 08 Jan 99 19.5 9.3 22.2 95.7 16.5 122.9

Templeton European Fund A (acc) EUR 17 Apr 91* 18.1 4.3 11.3 72.1 14.2 61.2

Templeton Frontier Markets Fund A (acc) USD 14 Oct 08 7.1 8.7 (10.7) 29.6 - 71.7

Templeton Global Fund A (Ydis) USD 28 Feb 91 11.6 4.0 (4.5) 54.1 12.1 309.2

Templeton Global (Euro) Fund A (Ydis) EUR 26 Apr 91 17.0 7.2 22.8 86.0 29.4 355.4

Templeton Global Balanced Fund A (Qdis) USD 01 Jun 94 6.7 3.8 (5.2) 31.8 19.6 213.1

Templeton Global Bond Fund A (Mdis) USD 28 Feb 91 6.9 4.3 (0.2) 17.5 79.8 435.6

Templeton Global Bond (Euro) Fund A (acc) EUR 29 Aug 03 1.3 0.8 6.6 16.7 43.0 58.5

Templeton Global Currency Fund A (acc) USD 07 Oct 16 - - - - - 1.4

Templeton Global Equity Income Fund A (acc) USD 27 May 05 11.2 3.5 (7.1) 34.2 (4.6) 27.2

Templeton Global High Yield Fund A (acc) USD 27 Sep 07 5.4 12.3 1.7 21.5 - 47.4

Templeton Global Income Fund A (acc) USD 27 May 05 8.9 4.8 (1.4) 33.3 45.9 85.0

Templeton Global Smaller Companies Fund A (Ydis) USD 08 Jul 91 9.2 11.1 (4.8) 38.1 (6.1) 296.8

Templeton Global Total Return Fund A (acc) USD 29 Aug 03 8.2 6.0 (0.4) 23.5 101.9 192.5

Templeton Growth (Euro) Fund A (acc) EUR 09 Aug 00 16.9 10.2 25.3 84.1 37.7 71.7

Templeton Korea Fund A (acc) USD 08 May 95 (1.5) (9.9) (26.6) (4.2) (25.4) (47.0)

Templeton Latin America Fund† A (Ydis) USD 28 Feb 91 (0.4) 23.9 (27.4) (33.3) (15.2) 439.4

Templeton Thailand Fund A (acc) USD 20 Jun 97 3.8 22.5 26.7 45.7 128.2 114.3

The Fund Performance disclosed in this table is the performance of the reference share class in base currency of the Fund.

Where Class A distribution “A (dis)” Shares are disclosed, the performance is calculated with all the income reinvested (total return). Information on othershare classes is available on request.

* The inception date is for the Fund, however the reference share class launched at a later date.

† Fund performance prior to September 1996 excluded from calculation because a different portfolio allocation strategy was in use.

Information on other share classes is available on request. This report shall not constitute an offer or a solicitation of an offer to buy shares. Subscriptions areto be made on the basis of the current prospectus, where available the relevant Key Investor Information Documents (“KIIDs”), a copy of the latest availableaudited annual report and, if published thereafter, the latest unaudited semi-annual report. The price of shares and income from them can go down as well asup and you may not get back the full amount that you invested. Past performance is no guarantee of future performance. Currency fluctuations may affect thevalue of investments.

Data source: Performance – Franklin Templeton Investments


Fund PerformancePercentage Change to December 31, 2016 (continued)


The Fund Performance disclosed in this table is the performance of the reference share class in base currency of the Fund.

Where Class A distribution “A (dis)” Shares are disclosed, the performance is calculated with all the income reinvested (total return). Information on othershare classes is available on request.

* The inception date is for the Fund, however the reference share class launched at a later date.

† Fund performance prior to September 1996 excluded from calculation because a different portfolio allocation strategy was in use.

Information on other share classes is available on request. This report shall not constitute an offer or a solicitation of an offer to buy shares. Subscriptions areto be made on the basis of the current prospectus, where available the relevant Key Investor Information Documents (“KIIDs”), a copy of the latest availableaudited annual report and, if published thereafter, the latest unaudited semi-annual report. The price of shares and income from them can go down as well asup and you may not get back the full amount that you invested. Past performance is no guarantee of future performance. Currency fluctuations may affect thevalue of investments.

Data source: Performance – Franklin Templeton Investments

All the Funds marked with "^" above are not authorised for public distribution in Hong Kong as of 31 December 2016 and are not available to Hong Kong investors.

Total FranklinAsia

CreditFund

FranklinBiotechnology

DiscoveryFund

FranklinBrazil

OpportunitiesFund

(USD) (USD) (USD) (USD)

ASSETSInvestment in securities at market value (notes 2(b), 3) 91,047,377,868 9,485,567 2,090,754,452 23,837,396Cash 3,507,534,055 32,577 118,323,629 1,830,403Time deposits and repurchase agreements (note 4) 733,730,711 - - -Amounts receivable on sale of investments 1,506,130,265 135,000 683,521 -Amounts receivable on subscriptions 265,781,442 - 13,153,427 116,803Interest and dividends receivable, net 841,056,685 112,205 171,060 668,209Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) 1,580,741,589 - - 33,201Unrealised profit on financial future contracts (notes 2(d), 6) 1,551,588 - - -Unrealised profit on interest rate swap contracts (notes 2(e), 7) 16,505,780 - - -Unrealised profit on inflation swap contracts (notes 2(f), 8) 401,174 - - 97,500Unrealised profit on cross currency swap contracts (notes 2(g), 9) 200,587 - - -Unrealised profit on total return swap contracts (notes 2(h), 10) 2,747,342 - - -Credit default swap contracts at market value (notes 2(i), 11) 19,091 - - -Option contracts at market value (notes 2(j), 12) 2,310,289 - - -Other receivables 63,291,929 - 14,068,745 -TOTAL ASSETS 99,569,380,395 9,765,349 2,237,154,834 26,583,512

LIABILITIESAmounts payable on purchases of investments 405,724,788 - 39,488,244 -Amounts payable on redemptions 347,651,627 - 11,656,872 93,343Investment management fees payable (note 14) 72,669,485 5,830 1,798,619 21,299Bank overdraft 2,401,142 - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) 27,053,295 87,496 220,466 -Unrealised loss on financial future contracts (notes 2(d), 6) 839,874 - - 520,956Unrealised loss on interest rate swap contracts (notes 2(e), 7) 622,420,768 - - -Unrealised loss on total return swap contracts (notes 2(h), 10) 1,331,120 - - -Credit default swap contracts at market value (notes 2(i), 11) 7,008,092 - - 469,635Option contracts at market value (notes 2(j), 12) 89,959 - - 1Taxes and expenses payable 151,611,530 15,846 1,594,877 155,298TOTAL LIABILITIES 1,638,801,680 109,172 54,759,078 1,260,532

TOTAL NET ASSETS 97,930,578,715 9,656,177 2,182,395,756 25,322,980

THREE YEAR ASSET SUMMARYJune 30, 2016 104,023,441,025 8,597,799 2,038,926,588 21,737,459June 30, 2015 145,217,443,597 7,893,010 3,124,463,500 25,695,821June 30, 2014 168,045,017,682 - 3,196,760,336 45,114,453


Statement of Net Assetsat December 31, 2016

The accompanying notes form an integral part of these financial statements


FranklinDiversifiedBalanced

Fund

FranklinDiversified

ConservativeFund

FranklinDiversified

DynamicFund

FranklinEuro

GovernmentBond Fund

FranklinEuro

High YieldFund

FranklinEuro

Short DurationBond Fund

Franklin EuroShort-Term

Money MarketFund

(EUR) (EUR) (EUR) (EUR) (EUR) (EUR) (EUR)

146,999,898 194,846,424 68,764,069 103,022,848 696,798,737 95,264,282 119,536,9197,955,101 20,958,068 6,199,307 3,236,362 38,197,683 7,724,251 17,728,203

- - - - - - -17,993 20,440 7,282 - - - -

791,483 980,165 146,087 54,662 754,078 524,354 264,1591,242,935 1,961,460 371,666 841,657 11,759,892 913,551 12,952

246,680 87,768 217,285 - - 108,653 -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -

23,771 35,570 10,682 - - - -5,136 4,479 3,877 125 - 12,558 35,153

157,282,997 218,894,374 75,720,255 107,155,654 747,510,390 104,547,649 137,577,386

62,622 71,494 28,121 - 44,329 - -49,070 828,910 3,507 232,275 1,357,793 373,508 798,33794,879 135,995 57,055 38,698 486,281 26,232 28,358

- - - - - - -- - - - 6,496,548 - -

65,164 91,199 32,543 - - - -- - - - - - -

365,307 62,873 214,121 - - - -86,060 166,650 63,304 - - - -

- - - - - - -161,902 213,938 149,993 71,198 599,702 47,894 101,202885,004 1,571,059 548,644 342,171 8,984,653 447,634 927,897

156,397,993 217,323,315 75,171,611 106,813,483 738,525,737 104,100,015 136,649,489

127,631,180 145,567,427 69,274,995 140,926,194 838,271,805 74,491,380 153,098,075107,850,940 37,946,832 65,867,006 184,877,343 997,997,060 65,830,876 65,615,272

- - - 103,108,684 1,304,276,718 7,061,242 69,860,381


Statement of Net Assetsat December 31, 2016 (continued)



FranklinEuroland

Fund

FranklinEuropean

Fund

FranklinEuropeanCorporate

Bond Fund

FranklinEuropeanDividend

Fund(EUR) (EUR) (EUR) (EUR)

ASSETSInvestment in securities at market value (notes 2(b), 3) 20,315,523 8,305,804 125,303,150 113,549,313Cash 985,081 249,745 3,184,380 789,217Time deposits and repurchase agreements (note 4) - - - -Amounts receivable on sale of investments - - - 54,969Amounts receivable on subscriptions 421,643 998 73,055 389,636Interest and dividends receivable, net 10,191 1,835 1,408,295 183,458Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) - - 41,996 160,134Unrealised profit on financial future contracts (notes 2(d), 6) - - - -Unrealised profit on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised profit on inflation swap contracts (notes 2(f), 8) - - - -Unrealised profit on cross currency swap contracts (notes 2(g), 9) - - - -Unrealised profit on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Other receivables 97,962 14,948 3,628 342,252TOTAL ASSETS 21,830,400 8,573,330 130,014,504 115,468,979

LIABILITIESAmounts payable on purchases of investments - - - -Amounts payable on redemptions 10,283 8,352 224,640 122,002Investment management fees payable (note 14) 16,446 6,608 55,377 84,620Bank overdraft - - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) - - - -Unrealised loss on financial future contracts (notes 2(d), 6) - - - -Unrealised loss on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised loss on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Taxes and expenses payable 31,112 15,746 82,692 93,116TOTAL LIABILITIES 57,841 30,706 362,709 299,738

TOTAL NET ASSETS 21,772,559 8,542,624 129,651,795 115,169,241

THREE YEAR ASSET SUMMARYJune 30, 2016 31,564,218 8,686,672 178,315,684 132,881,905June 30, 2015 59,031,246 10,751,032 178,736,104 143,512,949June 30, 2014 35,880,575 7,358,094 83,107,946 53,452,156





FranklinEuropean

GrowthFund

FranklinEuropean

IncomeFund

FranklinEuropean

Small-Mid CapGrowth Fund

FranklinEuropean

Total ReturnFund

FranklinFlexible

Alpha BondFund

FranklinGCC

BondFund

FranklinGlobal

AggregateBond Fund

(EUR) (EUR) (EUR) (EUR) (USD) (USD) (USD)

665,086,002 17,650,993 554,573,033 346,862,629 287,882,108 49,745,662 78,437,82842,749,359 705,275 6,384,382 28,193,865 12,687,210 96,397 2,431,169

- - - - - 3,400,000 -335,131 186,385 - - 52,286,299 59 4,060

36,545,313 632,229 365,171 1,168,726 - 601,218 56,621858,373 92,094 994,739 3,214,329 1,800,559 539,685 508,172

1,348,119 - 5,599 639,423 1,208,929 - 519,775- - - - 367,079 - -- - - - 517,147 - -- - - - 270,502 - -- - - - 186,157 - -- - - - - - -- - - - - - -- - - - 454,802 - -

1,849,916 18,444 2,976,308 76,821 29,677 - 7,755748,772,213 19,285,420 565,299,232 380,155,793 357,690,469 54,383,021 81,965,380

10,269,664 820,926 120,385 1,511,753 27,046,064 600 -1,560,519 25,237 1,294,691 1,316,615 - 5,222 378,348

525,047 12,183 393,047 217,130 155,201 27,614 33,974- - - - - - -- 1,804 - - - - -- 27,300 - - - - -- - - - - - -- - - - 90,655 - -- - - - 2,116,079 - -- - - - - - -

506,444 25,560 315,941 318,003 99,271 26,661 53,98312,861,674 913,010 2,124,064 3,363,501 29,507,270 60,097 466,305

735,910,539 18,372,410 563,175,168 376,792,292 328,183,199 54,322,924 81,499,075

686,207,149 19,112,302 630,857,606 342,927,026 310,655,006 47,711,986 81,204,0831,100,842,764 10,018,756 876,145,528 393,693,632 - 24,292,751 27,871,9873,132,137,485 - 904,235,203 183,558,208 - 11,848,638 21,989,463





FranklinGlobal Aggregate

Investment GradeBond Fund

FranklinGlobal

ConvertibleSecurities Fund

FranklinGlobal Equity

StrategiesFund

FranklinGlobal

FundamentalStrategies Fund


ASSETSInvestment in securities at market value (notes 2(b), 3) 11,278,966 79,996,694 97,761,211 1,651,822,100Cash 1,076,820 1,071,312 982,220 86,724,912Time deposits and repurchase agreements (note 4) - - 7,700,000 -Amounts receivable on sale of investments 203,000 4,147,000 33,586 141,001,747Amounts receivable on subscriptions - 461,630 55,781 2,641,023Interest and dividends receivable, net 82,336 260,402 173,152 9,283,209Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) 187,456 94,568 - 26,593,481Unrealised profit on financial future contracts (notes 2(d), 6) - - - -Unrealised profit on interest rate swap contracts (notes 2(e), 7) - - - 1,534,149Unrealised profit on inflation swap contracts (notes 2(f), 8) - - - -Unrealised profit on cross currency swap contracts (notes 2(g), 9) - - - -Unrealised profit on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Other receivables 2,726 2,608 33,823 716,867TOTAL ASSETS 12,831,304 86,034,214 106,739,773 1,920,317,488

LIABILITIESAmounts payable on purchases of investments - 256 8,376 5,592,799Amounts payable on redemptions 1,500 131,015 127,487 2,349,456Investment management fees payable (note 14) 4,673 50,213 113,417 1,600,361Bank overdraft - - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) - - 143,206 -Unrealised loss on financial future contracts (notes 2(d), 6) - - - -Unrealised loss on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised loss on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Taxes and expenses payable 23,450 72,692 219,419 2,157,228TOTAL LIABILITIES 29,623 254,176 611,905 11,699,844

TOTAL NET ASSETS 12,801,681 85,780,038 106,127,868 1,908,617,644

THREE YEAR ASSET SUMMARYJune 30, 2016 103,518,562 75,977,729 97,712,355 1,785,550,418June 30, 2015 25,387,004 129,931,327 109,133,267 2,048,746,912June 30, 2014 11,464,066 157,330,346 83,350,921 1,772,861,098





FranklinGlobalGrowth

Fund

FranklinGlobal

Growth andValue Fund

FranklinGlobal High

Income BondFund

FranklinGlobal ListedInfrastructure

Fund

FranklinGlobal

Multi-AssetIncome Fund

FranklinGlobal

Real EstateFund

FranklinGlobal


(USD) (USD) (USD) (USD) (EUR) (USD) (USD)

68,324,254 43,297,840 47,856,586 63,756,431 190,585,559 274,266,802 167,947,62564,270 110,065 307,790 107,043 22,000,452 155,660 -

1,600,000 800,000 - 150,000 - 460,000 -28 14 252,000 322,119 18,375 1,605,746 230,928

42,152 3,156 68,129 427,061 6,077,426 420,111 43,98731,159 24,522 854,074 174,030 1,614,989 1,116,990 501,908

- - - - - 110,485 -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - 12,728 - -

9,369 28,997 975 16,198 38,538 31,553 758,41370,071,232 44,264,594 49,339,554 64,952,882 220,348,067 278,167,347 169,482,861

86 - 531 326,202 120,847 5,162 -75,130 14,829 18 70,871 403,798 1,483,105 606,52950,529 37,560 32,424 42,814 144,758 220,285 136,932

- - - - - - 171,426- - 106,078 19,675 186,667 - -- - - - 86,890 - -- - - - - - -- - - - 268,521 - -- - - - 232,752 - -- - - - - - -

72,601 68,940 50,205 38,856 180,448 285,540 142,888198,346 121,329 189,256 498,418 1,624,681 1,994,092 1,057,775

69,872,886 44,143,265 49,150,298 64,454,464 218,723,386 276,173,255 168,425,086

77,821,576 53,571,056 50,163,239 60,542,687 135,211,370 342,101,642 200,170,691113,381,705 67,949,925 79,788,828 16,089,112 113,038,100 420,504,662 269,532,373187,502,608 70,964,780 81,213,777 10,182,735 31,687,039 437,586,926 435,729,824





FranklinGold andPrecious

Metals Fund

FranklinHighYieldFund

FranklinIncome

Fund

FranklinIndiaFund


ASSETSInvestment in securities at market value (notes 2(b), 3) 206,171,916 2,537,420,165 2,247,375,135 3,129,169,111Cash 721,215 10,125,240 6,870,086 848,511Time deposits and repurchase agreements (note 4) - - - 109,000,000Amounts receivable on sale of investments 2,320,982 38,163,000 21,859,940 21,525,646Amounts receivable on subscriptions 2,008,458 7,569,512 8,219,905 7,075,403Interest and dividends receivable, net 32,518 40,556,990 18,150,970 -Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) 109,363 - 193,304 -Unrealised profit on financial future contracts (notes 2(d), 6) - - - -Unrealised profit on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised profit on inflation swap contracts (notes 2(f), 8) - - - -Unrealised profit on cross currency swap contracts (notes 2(g), 9) - - - -Unrealised profit on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Other receivables - 30,909 400,895 130TOTAL ASSETS 211,364,452 2,633,865,816 2,303,070,235 3,267,618,801

LIABILITIESAmounts payable on purchases of investments 7,707 - 2,091 3,448,424Amounts payable on redemptions 1,048,177 14,265,944 10,131,355 24,978,122Investment management fees payable (note 14) 172,882 1,749,332 1,639,369 2,319,785Bank overdraft - - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) - 1,161,620 - 198,639Unrealised loss on financial future contracts (notes 2(d), 6) - - - -Unrealised loss on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised loss on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Taxes and expenses payable 207,194 2,665,215 2,226,365 2,244,566TOTAL LIABILITIES 1,435,960 19,842,111 13,999,180 33,189,536

TOTAL NET ASSETS 209,928,492 2,614,023,705 2,289,071,055 3,234,429,265

THREE YEAR ASSET SUMMARYJune 30, 2016 245,152,174 2,648,362,272 2,413,536,952 3,238,697,682June 30, 2015 87,533,596 3,608,241,809 3,479,311,991 3,921,704,369June 30, 2014 107,261,361 5,131,295,651 3,631,326,483 1,854,259,603

^ This Fund was launched on November 4, 2016‡ This Fund was launched on December 2, 2016





FranklinJapanFund

Franklin K2AlternativeStrategies

Fund

Franklin K2Global MacroOpportunites

Fund^

FranklinK2 Long Short

CreditFund‡

FranklinMENAFund

FranklinNatural

ResourcesFund

FranklinNextStep

Balanced GrowthFund

(JPY) (USD) (USD) (USD) (USD) (USD) (USD)

33,797,810,320 579,627,772 2,019,387 31,188,210 87,842,429 355,932,140 94,655,989389,561,330 181,178,511 5,059,428 13,815,073 1,278,271 3,283,318 88,212

- 272,444,100 17,516,100 5,280,900 1,800,000 - 2,800,000884,768,867 5,834,195 - 84,598 163 13,909,390 125,626

35,803,105 6,787,878 - 2,093,167 131,158 2,949,574 536,95340,703,941 3,675,847 37,735 300,582 121,877 341,011 -

- - - - - 453,850 -- 921,370 68,639 2,337 - - -- - - - - - -- 25,533 3,436 4,203 - - -- - - - - - -- 2,747,342 - - - - -- - 13,645 - - - -- 1,691,090 - 77,326 - - -

78 65,524 - 5,769 12 5,554 12,48735,148,647,641 1,054,999,162 24,718,370 52,852,165 91,173,910 376,874,837 98,219,267

513,506,697 1,604,750 52,377 607 - 190 417872,480,903 3,618,919 - - 279,011 4,704,920 848,672

23,702,981 1,661,266 39,013 75,068 107,068 313,878 69,976- - - - - - -

10,211,651 4,038,139 66,438 306,423 83,145 - 33,679- - - - - - -- 165,995 8,379 - - - -- - - 25,710 - - -- 176,412 - 105,781 - - -- - - - - - -

25,882,815 777,748 23,749 15,732 127,470 362,205 67,8541,445,785,047 12,043,229 189,956 529,321 596,694 5,381,193 1,020,598

33,702,862,594 1,042,955,933 24,528,414 52,322,844 90,577,216 371,493,644 97,198,669

26,519,107,459 1,084,826,827 - - 95,875,802 301,524,049 9,828,10835,556,151,923 632,360,045 - - 209,097,880 274,683,455 -25,330,401,513 - - - 281,268,016 278,339,427 -





FranklinNextStep

ConservativeFund

FranklinNextStep

Dynamic GrowthFund

FranklinNextStep

GrowthFund

FranklinNextStepModerate

Fund(USD) (USD) (USD) (USD)

ASSETSInvestment in securities at market value (notes 2(b), 3) 18,953,220 22,281,056 10,337,487 27,208,578Cash 147,475 109,417 105,673 348,864Time deposits and repurchase agreements (note 4) 900,000 300,000 550,000 1,500,000Amounts receivable on sale of investments 311,215 104,051 247 476Amounts receivable on subscriptions 26,436 495 28,983 145,627Interest and dividends receivable, net - - - -Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) 154,604 - 20,419 -Unrealised profit on financial future contracts (notes 2(d), 6) - - - -Unrealised profit on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised profit on inflation swap contracts (notes 2(f), 8) - - - -Unrealised profit on cross currency swap contracts (notes 2(g), 9) - - - -Unrealised profit on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Other receivables 14,079 13,600 11,833 19,466TOTAL ASSETS 20,507,029 22,808,619 11,054,642 29,223,011

LIABILITIESAmounts payable on purchases of investments 81 147 115,269 103,651Amounts payable on redemptions - 112,064 - -Investment management fees payable (note 14) 13,599 16,500 8,274 20,971Bank overdraft - - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) - 14,981 - 67,724Unrealised loss on financial future contracts (notes 2(d), 6) - - - -Unrealised loss on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised loss on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Taxes and expenses payable 24,102 29,061 21,492 30,458TOTAL LIABILITIES 37,782 172,753 145,035 222,804

TOTAL NET ASSETS 20,469,247 22,635,866 10,909,607 29,000,207

THREE YEAR ASSET SUMMARYJune 30, 2016 7,141,045 4,497,653 3,376,470 8,501,020June 30, 2015 - - - -June 30, 2014 - - - -





FranklinNextStep

Stable GrowthFund

FranklinReal

ReturnFund

FranklinStrategic

IncomeFund

FranklinTechnology

Fund

FranklinU.S. Dollar

Liquid ReserveFund

FranklinU.S.

EquityFund

FranklinU.S.

GovernmentFund

(USD) (USD) (USD) (USD) (USD) (USD) (USD)

18,316,517 7,498,488 925,512,959 854,362,530 325,887,012 482,344,215 1,003,116,239101,941 398,261 44,588,105 38,972,087 - 1,073,856 6,916,001630,000 - - - - - -

79,777 1,192,000 134,972,716 - 38,000,000 4,408,006 18,927,0001,675 17,316 2,328,453 3,319,511 2,157,039 841,290 8,652,018

- 52,966 9,770,483 372,076 - 420,998 3,182,623- 14,548 7,316,019 - - 63,584 -- - 144,061 - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- 5,446 - - - - -- - - - - - -

9,727 3,530 199,916 116,130 101,921 - 14,16319,139,637 9,182,555 1,124,832,712 897,142,334 366,145,972 489,151,949 1,040,808,044

99,496 - 61,645,244 382 - - -- 17,638 3,784,657 3,180,454 10,946,713 1,186,890 6,667,809

12,861 5,489 658,298 741,632 93,068 397,702 526,113- - - - 1,991,703 - -

22,040 - - - - - 1,874,319- - - - - - -- - - - - - -- - 192,171 - - - -- - 60,938 - - - -- - - - - - -

22,299 20,904 1,048,333 766,439 226,548 509,246 810,085156,696 44,031 67,389,641 4,688,907 13,258,032 2,093,838 9,878,326

18,982,941 9,138,524 1,057,443,071 892,453,427 352,887,940 487,058,111 1,030,929,718

6,077,952 7,365,332 1,179,933,357 912,322,077 403,995,936 506,167,855 1,211,181,698- 9,064,978 1,877,416,845 953,563,141 330,503,303 675,514,978 1,067,430,758- 9,149,693 1,498,222,686 820,948,763 281,128,075 576,592,202 905,721,951





FranklinU.S. LowDuration

Fund

FranklinU.S.

OpportunitiesFund

FranklinU.S. Small-Mid

Cap GrowthFund

FranklinU.S. Total

ReturnFund


ASSETSInvestment in securities at market value (notes 2(b), 3) 731,105,051 2,957,450,697 151,143,280 148,729,428Cash 25,355,215 21,630,755 463,880 1,941,004Time deposits and repurchase agreements (note 4) - - - -Amounts receivable on sale of investments 62,250,000 17,149,981 1,190,000 10,009,436Amounts receivable on subscriptions 3,264,490 4,701,954 501,979 40,597Interest and dividends receivable, net 3,998,039 1,657,064 47,805 1,130,198Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) 1,538,802 909,808 - 1,010,866Unrealised profit on financial future contracts (notes 2(d), 6) 41,002 - - 7,100Unrealised profit on interest rate swap contracts (notes 2(e), 7) 1,409,346 - - -Unrealised profit on inflation swap contracts (notes 2(f), 8) - - - -Unrealised profit on cross currency swap contracts (notes 2(g), 9) - - - 14,430Unrealised profit on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Other receivables 41,413 12,401,556 - 17,722TOTAL ASSETS 829,003,358 3,015,901,815 153,346,944 162,900,781

LIABILITIESAmounts payable on purchases of investments 692,632 9,851,290 20,047 21,107,247Amounts payable on redemptions 1,364,469 14,206,442 376,838 563,129Investment management fees payable (note 14) 419,928 2,433,591 132,440 77,365Bank overdraft - - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) - - - -Unrealised loss on financial future contracts (notes 2(d), 6) - - - -Unrealised loss on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised loss on total return swap contracts (notes 2(h), 10) 44,710 - - 19,507Credit default swap contracts at market value (notes 2(i), 11) 3,121,970 - - 379,865Option contracts at market value (notes 2(j), 12) - - - -Taxes and expenses payable 585,259 2,516,290 158,881 123,572TOTAL LIABILITIES 6,228,968 29,007,613 688,206 22,270,685

TOTAL NET ASSETS 822,774,390 2,986,894,202 152,658,738 140,630,096

THREE YEAR ASSET SUMMARYJune 30, 2016 904,479,104 3,723,344,289 185,731,589 135,545,461June 30, 2015 1,605,831,136 4,723,501,172 293,260,263 164,895,493June 30, 2014 1,652,992,798 4,670,970,838 271,387,103 136,124,085





FranklinWorld

PerspectivesFund

FranklinMutualBeacon

Fund

FranklinMutual

EuropeanFund

FranklinMutual Global

DiscoveryFund

TempletonAfricaFund

TempletonASEAN

Fund

TempletonAsianBondFund

(USD) (USD) (EUR) (USD) (USD) (USD) (USD)

311,782,189 787,771,509 1,710,814,104 980,899,089 64,228,738 4,293,032 614,628,5052,122,393 42,413,179 57,977,052 8,805,645 771,097 208,595 38,417,1143,400,000 - - - 2,200,000 - -

198,150 8,700,000 8,419,379 8,385,915 77,417 - 41,873,0002,342,703 5,063,924 10,295,568 795,650 225,718 55 436,317

282,793 1,219,116 1,772,929 1,653,918 89,830 1,276 11,425,640- - - 482,268 - - 23,186,497- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -

156,735 62,533 2,263,181 176,306 17,197 925 -320,284,963 845,230,261 1,791,542,213 1,001,198,791 67,609,997 4,503,883 729,967,073

189,215 13,909,837 27,448 216,174 338 - 10,046,590821,857 3,673,046 4,922,407 1,635,177 142,603 - 2,567,246224,966 637,964 1,335,847 771,123 82,888 5,124 423,437

- - - - - - -- 97,456 471,224 - 408,556 - -- - - - - - -- - - - - - 20,096,918- - - - - - -- - - - - - -- - - - - - -

206,610 1,156,963 2,183,313 873,650 405,256 11,588 3,409,2261,442,648 19,475,266 8,940,239 3,496,124 1,039,641 16,712 36,543,417

318,842,315 825,754,995 1,782,601,974 997,702,667 66,570,356 4,487,171 693,423,656

363,338,333 641,560,164 1,808,035,248 942,338,326 77,149,040 3,271,801 841,044,530392,152,862 956,365,990 3,038,004,877 1,372,939,054 127,043,263 5,506,990 1,605,694,101345,122,633 1,169,070,336 3,757,379,912 1,934,098,366 139,593,248 - 2,032,463,169





TempletonAsian

DividendFund

TempletonAsian

GrowthFund

TempletonAsian Smaller

CompaniesFund

TempletonBRICFund


ASSETSInvestment in securities at market value (notes 2(b), 3) 2,986,827 4,682,067,239 1,115,306,167 679,353,513Cash 101,633 19,681,446 169,397 243,090Time deposits and repurchase agreements (note 4) 380,000 84,000,000 38,200,000 18,300,000Amounts receivable on sale of investments 185 4,008,779 3,489,383 552,364Amounts receivable on subscriptions 479 5,307,324 2,430,177 511,646Interest and dividends receivable, net 2,947 4,482,098 993,428 2,841,934Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) - - - -Unrealised profit on financial future contracts (notes 2(d), 6) - - - -Unrealised profit on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised profit on inflation swap contracts (notes 2(f), 8) - - - -Unrealised profit on cross currency swap contracts (notes 2(g), 9) - - - -Unrealised profit on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Other receivables 1,000 - 330 -TOTAL ASSETS 3,473,071 4,799,546,886 1,160,588,882 701,802,547

LIABILITIESAmounts payable on purchases of investments - 21,722,054 65,036 -Amounts payable on redemptions 19,780 9,803,230 1,916,871 1,159,912Investment management fees payable (note 14) 3,970 5,181,908 1,140,806 951,837Bank overdraft - - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) - 1,561,465 - 239,740Unrealised loss on financial future contracts (notes 2(d), 6) - - - -Unrealised loss on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised loss on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Taxes and expenses payable 13,890 6,308,134 783,517 1,286,090TOTAL LIABILITIES 37,640 44,576,791 3,906,230 3,637,579

TOTAL NET ASSETS 3,435,431 4,754,970,095 1,156,682,652 698,164,968

THREE YEAR ASSET SUMMARYJune 30, 2016 5,387,957 4,508,040,016 1,126,815,386 683,471,085June 30, 2015 10,051,338 10,040,238,841 1,511,952,778 910,377,435June 30, 2014 5,659,011 12,681,269,302 973,932,482 1,214,667,740





TempletonChinaFund

TempletonEasternEurope

Fund

TempletonEmerging

MarketsFund

TempletonEmerging Markets

BalancedFund

TempletonEmerging

MarketsBond Fund


Smaller CompaniesFund

TempletonEuroland

Fund

(USD) (EUR) (USD) (USD) (USD) (USD) (EUR)

512,972,753 285,151,362 546,446,027 45,415,047 3,650,487,511 497,486,371 323,058,355- 8,845,643 1,399,215 704,347 185,191,608 7,720,911 7,447,610- - 18,000,000 - - - -

1,741,987 27,396 251,637 511,069 91,257,219 28,477,497 48,545508,025 487,568 2,812,937 281,106 21,415,041 1,236,548 2,135,288728,401 436,008 1,225,281 531,739 91,743,942 255,610 84,780

- - - - 14,327,556 - -- - - - - - -- - - 5,588 10,264,147 - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -

29 495,324 34,484 6,333 494,274 28,018 433,645515,951,195 295,443,301 570,169,581 47,455,229 4,065,181,298 535,204,955 333,208,223

- - 494,439 43,660 7,453,085 152,763 1,231,5981,118,829 583,001 1,069,371 323,377 18,253,535 1,703,355 637,816

686,451 370,915 754,680 49,945 3,138,383 608,432 249,252238,013 - - - - - -

- - 55,895 770 - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -

715,935 615,770 1,095,372 83,560 7,854,529 444,092 304,5072,759,228 1,569,686 3,469,757 501,312 36,699,532 2,908,642 2,423,173

513,191,967 293,873,615 566,699,824 46,953,917 4,028,481,766 532,296,313 330,785,050

529,554,974 270,212,102 525,175,142 44,032,095 3,822,276,997 483,632,814 225,841,210843,014,039 288,357,328 647,377,931 61,342,926 4,757,561,487 448,620,075 270,562,552937,254,225 361,133,716 885,777,690 78,614,839 6,868,866,048 293,683,078 240,379,702





TempletonEuropean

Fund

TempletonFrontierMarkets

Fund

TempletonGlobalFund

TempletonGlobal(Euro)Fund

(EUR) (USD) (USD) (EUR)

ASSETSInvestment in securities at market value (notes 2(b), 3) 216,794,447 767,618,327 1,130,127,142 689,357,005Cash 4,843,644 9,792,478 142,699 10,532,523Time deposits and repurchase agreements (note 4) - 34,700,000 30,500,000 -Amounts receivable on sale of investments - 8,377 1,459 476,496Amounts receivable on subscriptions 244,836 799,185 1,717,614 1,670,926Interest and dividends receivable, net 206,193 760,888 653,792 546,371Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) - - - 11,475Unrealised profit on financial future contracts (notes 2(d), 6) - - - -Unrealised profit on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised profit on inflation swap contracts (notes 2(f), 8) - - - -Unrealised profit on cross currency swap contracts (notes 2(g), 9) - - - -Unrealised profit on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Other receivables 482,004 878 922,501 479,612TOTAL ASSETS 222,571,124 813,680,133 1,164,065,207 703,074,408

LIABILITIESAmounts payable on purchases of investments 2,817 420,053 101,961 -Amounts payable on redemptions 723,573 1,110,698 1,998,929 568,319Investment management fees payable (note 14) 181,996 935,253 926,746 592,174Bank overdraft - - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) - 689,252 - -Unrealised loss on financial future contracts (notes 2(d), 6) - - - -Unrealised loss on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised loss on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Taxes and expenses payable 185,828 5,576,086 1,166,926 684,973TOTAL LIABILITIES 1,094,214 8,731,342 4,194,562 1,845,466

TOTAL NET ASSETS 221,476,910 804,948,791 1,159,870,645 701,228,942

THREE YEAR ASSET SUMMARYJune 30, 2016 217,815,064 816,651,982 1,159,102,438 620,499,565June 30, 2015 301,775,110 1,256,869,622 1,500,917,332 784,348,115June 30, 2014 450,386,721 2,020,766,694 1,845,441,863 705,373,636

# This Fund was launched on October 7, 2016





TempletonGlobal

BalancedFund

TempletonGlobalBondFund

TempletonGlobal Bond

(Euro)Fund

TempletonGlobal

CurrencyFund#

TempletonGlobal Equity

IncomeFund

TempletonGlobal

High YieldFund

TempletonGlobal

IncomeFund

(USD) (USD) (EUR) (USD) (USD) (USD) (USD)

818,932,442 16,693,732,901 282,721,919 4,751,085 155,431,181 160,832,795 1,101,189,10086,309,756 852,089,390 63,074,967 741,347 140,878 3,066,265 18,528,730

- - - - 2,100,000 - -816,966 354,499,853 3,500 2,237,154 56,847 6,106,203 61,695,842

1,044,679 26,217,179 753,851 - 162,938 884,327 3,817,7293,234,780 239,682,292 4,856,877 78,416 222,127 2,823,469 6,536,6291,379,936 811,918,585 - 195,586 - 1,305,928 21,324,237

- - - - - - -- - 2,143,239 - - 87,665 432,622- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -

409,635 12,610,190 176,365 1,437 151,095 19,334 1,103,648912,128,194 18,990,750,390 353,730,718 8,005,025 158,265,066 175,125,986 1,214,628,537

6,638,258 68,583,253 17,715,605 47,213 - 80,427 5,266,6682,293,564 56,335,609 1,076,797 - 706,256 682,085 3,460,815

610,726 11,137,073 202,659 4,574 133,961 121,913 843,352- - - - - - -- - 7,510,638 - 2,596 - -- - - - - - -- 319,461,192 - - - - -- - - - - - -- - - - - - -- - - - 89,958 - -

1,150,966 44,268,767 638,721 9,845 197,142 227,634 1,333,88010,693,514 499,785,894 27,144,420 61,632 1,129,913 1,112,059 10,904,715

901,434,680 18,490,964,496 326,586,298 7,943,393 157,135,153 174,013,927 1,203,723,822

938,407,418 22,001,556,826 365,968,734 - 164,081,704 163,016,307 1,481,892,0951,235,789,670 32,732,039,223 388,655,489 - 248,399,545 203,340,828 2,206,717,6551,383,224,749 38,668,873,241 596,924,004 - 361,798,942 280,179,902 1,784,058,475





TempletonGlobal Smaller

CompaniesFund

TempletonGlobal

Total ReturnFund

TempletonGrowth(Euro)Fund

TempletonKoreaFund

(USD) (USD) (EUR) (USD)

ASSETSInvestment in securities at market value (notes 2(b), 3) 112,222,318 17,384,757,997 7,008,697,817 36,725,239Cash 148,780 689,289,831 536,447,550 60,145Time deposits and repurchase agreements (note 4) 5,000,000 - 57,042,018 1,000,000Amounts receivable on sale of investments 1,152 276,110,460 1,925,964 17Amounts receivable on subscriptions 301,320 29,774,435 2,107,924 38,098Interest and dividends receivable, net 91,074 319,349,929 6,493,080 30,894Unrealised profit on forward foreign exchange contracts (notes 2(c), 5) - 663,071,138 - -Unrealised profit on financial future contracts (notes 2(d), 6) - - - -Unrealised profit on interest rate swap contracts (notes 2(e), 7) - - - -Unrealised profit on inflation swap contracts (notes 2(f), 8) - - - -Unrealised profit on cross currency swap contracts (notes 2(g), 9) - - - -Unrealised profit on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Other receivables 81,689 4,561,490 2,789,774 -TOTAL ASSETS 117,846,333 19,366,915,280 7,615,504,127 37,854,393

LIABILITIESAmounts payable on purchases of investments 87,223 47,325,174 12,280,208 607,352Amounts payable on redemptions 282,809 83,493,097 3,929,374 156,226Investment management fees payable (note 14) 99,308 11,240,071 6,408,824 50,707Bank overdraft - - - -Unrealised loss on forward foreign exchange contracts (notes 2(c), 5) - - - -Unrealised loss on financial future contracts (notes 2(d), 6) - - - -Unrealised loss on interest rate swap contracts (notes 2(e), 7) - 282,688,284 - -Unrealised loss on total return swap contracts (notes 2(h), 10) - - - -Credit default swap contracts at market value (notes 2(i), 11) - - - -Option contracts at market value (notes 2(j), 12) - - - -Taxes and expenses payable 172,216 35,223,749 6,627,189 81,094TOTAL LIABILITIES 641,556 459,970,375 29,245,595 895,379

TOTAL NET ASSETS 117,204,777 18,906,944,905 7,586,258,532 36,959,014

THREE YEAR ASSET SUMMARYJune 30, 2016 113,758,358 21,120,878,212 6,563,260,233 38,599,896June 30, 2015 142,872,980 30,788,646,224 7,445,372,975 62,085,345June 30, 2014 164,669,767 35,393,742,664 6,415,979,187 95,072,318





TempletonLatin

AmericaFund

TempletonThailand

Fund

(USD) (USD)

1,044,554,040 135,121,0911,111,719 205,6498,100,000 1,000,000

607 2,033,9154,704,446 778,0407,596,616 57,845

- -- -- -- -- -- -- -- -

58 -1,066,067,486 139,196,540

27,004 13,0703,481,627 552,2991,204,060 186,581

- -33,648 -

- -- -- -- -- -

1,564,893 185,5866,311,232 937,536

1,059,756,254 138,259,004

1,103,673,787 143,285,7381,177,268,298 155,284,1091,869,091,159 196,469,636





Total FranklinAsia

CreditFund

FranklinBiotechnology

DiscoveryFund

FranklinBrazil

OpportunitiesFund


NET ASSETS AT THE BEGINNING OF THE PERIOD 104,023,441,025 8,597,799 2,038,926,588 21,737,459Currency translation adjustment (826,098,639) - - -

103,197,342,386 8,597,799 2,038,926,588 21,737,459

INCOMEDividends (net of withholding taxes) (note 2(m)) 339,579,896 - 2,215,905 54,896Interest on bonds (net of withholding taxes) (note 2(m)) 1,641,544,166 186,534 5,813 900,140Bank interest 4,976,869 - - 1,198Securities lending (notes 2(n), 13) 2,255,630 - 877,280 -Net interest income on swaps 2,330,817 - - 35,963Sundry income 24,771,820 50 83,469 -TOTAL INCOME 2,015,459,198 186,584 3,182,467 992,197EXPENSESInvestment management fees (note 14) 439,823,702 32,755 10,719,971 117,035Administration and transfer agency fees 116,930,236 10,780 2,506,126 32,696Directors fees 120,505 11 2,547 27Subscription tax (note 17) 21,033,708 1,736 508,069 5,365Custodian fees 19,945,669 307 36,230 5,061Audit fees 695,637 6,630 7,600 5,374Printing and publishing expenses 3,759,852 335 79,670 841Bank charges 2,296,640 - 14 1,500Net interest expenses on swaps 115,949,377 - - -Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 134,166,923 10,519 4,581,988 23,378Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) 524,798 - - -Class AX (acc) shares’ maintenance charges (note 18) 1,085,720 - - -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) 12,691,795 - 233,404 -Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) 10,107,347 - 89,002 -Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) 55,678,150 - 1,022,266 67,836Other charges 16,414,760 1,384 333,664 3,469TOTAL EXPENSES 951,224,819 64,457 20,120,551 262,582

Expenses reimbursement (note 19) (5,638,341) (569) (742) -NET EXPENSES 945,586,478 63,888 20,119,809 262,582

NET PROFIT/(LOSS) FROM INVESTMENTS 1,069,872,720 122,696 (16,937,342) 729,615Net realised profit/(loss) on sale of investments (1,191,035,076) 9,900 87,564,998 430,034Net realised profit/(loss) on forward foreign exchange contracts (1,867,058,767) (66,227) (720,510) (465,224)Net realised profit/(loss) on financial future contracts (945,106) - - (1,807,180)Net realised profit/(loss) on interest rate swap contracts (4,389,565) - - -Net realised profit/(loss) on total return swap contracts (171,738) - - -Net realised profit/(loss) on credit default swap contracts 2,256,409 - - (1,463)Net realised profit/(loss) on option contracts (14,635,989) - - 274,783Net realised profit/(loss) on foreign exchange transactions (40,115,119) 252 (9,096) 39,854NET REALISED PROFIT/(LOSS) FOR THE PERIOD (2,046,222,231) 66,621 69,898,050 (799,581)Change in net unrealised appreciation/(depreciation) on:

Investments 3,017,670,681 (49,078) 76,482,910 301,505Forward foreign exchange contracts 3,939,695,660 (115,505) 37,980 95,900Financial future contracts (463,210) - - 574,672Interest rate swap contracts 1,148,159,033 - - -Inflation swap contracts 371,311 - - 8,847Cross currency swap contracts 145,943 - - -Total return swap contracts 2,627,623 - - -Credit default swap contracts (4,004,372) - - 212,297Option contracts 5,420,118 - - 658,313Foreign exchange transactions 180,543,615 (115,505) 160,892 19,770

Capital gains tax (375,000) - - -NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 6,243,569,171 (213,467) 146,579,832 1,071,723

MOVEMENT OF CAPITALIssue of shares 17,185,312,239 1,619,786 940,153,170 7,925,793Redemption of shares (26,530,403,582) (165,591) (943,263,834) (4,569,726)Equalisation (note 22) (30,430,229) 3,825 - 49,042

(9,375,521,572) 1,458,020 (3,110,664) 3,405,109

Dividends paid/accumulated (note 23) (2,134,811,270) (186,175) - (891,311)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL (11,510,332,842) 1,271,845 (3,110,664) 2,513,798

NET ASSETS AT THE END OF THE PERIOD 97,930,578,715 9,656,177 2,182,395,756 25,322,980

Portfolio Turnover Ratio (note 24) 37.77% 25.18% 156.07%


Statement of Operations and Changes in Net AssetsFor the Period ended December 31, 2016



FranklinDiversifiedBalanced

Fund

FranklinDiversified

ConservativeFund

FranklinDiversified

DynamicFund

FranklinEuro

GovernmentBond Fund

FranklinEuro

High YieldFund

FranklinEuro

Short DurationBond Fund

Franklin EuroShort-Term

Money MarketFund

(EUR) (EUR) (EUR) (EUR) (EUR) (EUR) (EUR)

127,631,180 145,567,427 69,274,995 140,926,194 838,271,805 74,491,380 153,098,075- - - - - - -

127,631,180 145,567,427 69,274,995 140,926,194 838,271,805 74,491,380 153,098,075

909,298 728,710 619,176 - 206,280 - -582,180 796,274 228,663 535,530 17,539,862 355,419 -

- - - - 2,096 - -- - - - - - -- - 14,267 - - - -- 2,200 - - 11,250 - 3,000

1,491,478 1,527,184 862,106 535,530 17,759,488 355,419 3,000

513,556 694,295 325,700 273,246 3,016,563 150,518 175,816160,812 221,938 82,381 152,284 911,230 92,608 103,864

161 205 84 162 947 106 17515,707 27,899 10,942 18,343 172,477 10,783 7,431

6,570 10,565 2,847 5,656 32,816 3,901 6,2404,686 4,703 5,122 4,377 6,543 5,220 3,6015,061 6,461 2,633 5,039 29,601 3,324 5,460

30,731 53,666 17,384 30,290 144,335 11,792 63,997160,044 114,167 - - - - -153,086 130,827 178,064 28,863 1,034,243 17,534 59,414

- - - - - - -- - - - - - -- - - - 176,159 - -- - - - - - -

31,633 382,485 6,490 106,862 541,660 61,645 -20,877 26,642 10,859 20,795 122,173 13,738 118,958

1,102,924 1,673,853 642,506 645,917 6,188,747 371,169 544,956

- (20) - (818) (2,529) (22,058) (223,808)1,102,924 1,673,833 642,506 645,099 6,186,218 349,111 321,148

388,554 (146,649) 219,600 (109,569) 11,573,270 6,308 (318,148)2,439,253 3,810,587 88,091 430,023 656,496 (41,234) -

(2,481,403) (3,328,779) (1,087,480) - 10,668,366 119,297 -(1,287,970) (470,561) (962,126) 606,383 - - -

- - - - - - -- - - - - - -- - - - - - -

(1,467,173) (745,379) (960,944) - - - -(188,318) (262,323) (29,444) - (338,061) 1,135 -

(2,597,057) (1,143,104) (2,732,303) 926,837 22,560,071 85,506 (318,148)

3,603,449 (891,774) 3,929,675 (3,349,252) 25,498,971 201,395 -935,789 1,021,945 505,278 - (10,333,991) 66,747 -

(499,459) (481,486) (289,040) - - - -- - - - - - -- - - - - - -- - - - - - -

251,935 387,725 121,339 - - - -(23,757) (46,466) (15,062) - - - -524,163 429,425 364,423 - - - -(18,543) (12,771) 2,160 - (425,465) (3,835) -

- - - - - - -2,176,520 (736,506) 1,886,470 (2,422,415) 37,299,586 349,813 (318,148)

32,745,856 100,049,361 6,174,576 14,571,094 104,181,730 51,567,083 30,765,562(4,289,379) (27,166,301) (2,148,567) (44,880,176) (209,680,862) (21,903,650) (46,896,000)

327,464 471,227 18,659 (84,296) (973,362) 21,833 -28,783,941 73,354,287 4,044,668 (30,393,378) (106,472,494) 29,685,266 (16,130,438)

(2,193,648) (861,893) (34,522) (1,296,918) (30,573,160) (426,444) -

26,590,293 72,492,394 4,010,146 (31,690,296) (137,045,654) 29,258,822 (16,130,438)

156,397,993 217,323,315 75,171,611 106,813,483 738,525,737 104,100,015 136,649,489

304.19% 241.70% 343.48% 84.57% 54.14% 63.91% N/A


Statement of Operations and Changes in Net AssetsFor the Period ended December 31, 2016 (continued)



FranklinEuroland

Fund

FranklinEuropean

Fund

FranklinEuropeanCorporate

Bond Fund

FranklinEuropeanDividend

Fund(EUR) (EUR) (EUR) (EUR)

NET ASSETS AT THE BEGINNING OF THE PERIOD 31,564,218 8,686,672 178,315,684 132,881,905Currency translation adjustment - - - -

31,564,218 8,686,672 178,315,684 132,881,905

INCOMEDividends (net of withholding taxes) (note 2(m)) 133,739 53,749 - 1,312,806Interest on bonds (net of withholding taxes) (note 2(m)) - - 1,537,113 -Bank interest - - - -Securities lending (notes 2(n), 13) - - - -Net interest income on swaps - - - -Sundry income 14,050 157 2,500 5,595TOTAL INCOME 147,789 53,906 1,539,613 1,318,401EXPENSESInvestment management fees (note 14) 126,417 41,258 379,021 507,294Administration and transfer agency fees 36,964 11,641 163,508 141,870Directors fees 37 11 199 153Subscription tax (note 17) 4,440 1,827 25,000 20,201Custodian fees 1,456 479 7,571 6,828Audit fees 4,009 3,997 4,438 4,888Printing and publishing expenses 1,385 329 6,203 4,787Bank charges 3,608 - 16,908 7,683Net interest expenses on swaps - - - -Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 19,493 10,562 57,885 89,243Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) - - - -Class AX (acc) shares’ maintenance charges (note 18) - - - -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) - - - -Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) - - - -Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) 42,867 16,135 170,713 205,245Other charges 4,797 1,359 25,614 19,741TOTAL EXPENSES 245,473 87,598 857,060 1,007,933

Expenses reimbursement (note 19) - - (42,713) (1,195)NET EXPENSES 245,473 87,598 814,347 1,006,738

NET PROFIT/(LOSS) FROM INVESTMENTS (97,684) (33,692) 725,266 311,663Net realised profit/(loss) on sale of investments 901,751 286,140 2,736,604 (1,493,715)Net realised profit/(loss) on forward foreign exchange contracts - - 144,193 74,585Net realised profit/(loss) on financial future contracts - - 323,980 -Net realised profit/(loss) on interest rate swap contracts - - - -Net realised profit/(loss) on total return swap contracts - - - -Net realised profit/(loss) on credit default swap contracts - - - -Net realised profit/(loss) on option contracts - - - -Net realised profit/(loss) on foreign exchange transactions (910) 3,930 (45,006) 32,958NET REALISED PROFIT/(LOSS) FOR THE PERIOD 803,157 256,378 3,885,037 (1,074,509)Change in net unrealised appreciation/(depreciation) on:

Investments 2,262,521 402,642 (984,529) 11,152,227Forward foreign exchange contracts - - (15,386) 101,232Financial future contracts - - - -Interest rate swap contracts - - - -Inflation swap contracts - - - -Cross currency swap contracts - - - -Total return swap contracts - - - -Credit default swap contracts - - - -Option contracts - - - -Foreign exchange transactions - 656 1,142 116,156

Capital gains tax - - - -NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 3,065,678 659,676 2,886,264 10,295,106

MOVEMENT OF CAPITALIssue of shares 3,571,350 331,659 21,359,367 25,247,550Redemption of shares (16,008,120) (1,089,872) (69,163,037) (46,097,079)Equalisation (note 22) 1,305 - (196,072) (184,230)

(12,435,465) (758,213) (47,999,742) (21,033,759)

Dividends paid/accumulated (note 23) (421,872) (45,511) (3,550,411) (6,974,011)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL (12,857,337) (803,724) (51,550,153) (28,007,770)

NET ASSETS AT THE END OF THE PERIOD 21,772,559 8,542,624 129,651,795 115,169,241

Portfolio Turnover Ratio (note 24) 115.04% 165.43% 27.73% 70.70%





FranklinEuropean

GrowthFund

FranklinEuropean

IncomeFund

FranklinEuropean


FranklinEuropean

Total ReturnFund

FranklinFlexible

Alpha BondFund

FranklinGCC

BondFund

FranklinGlobal

AggregateBond Fund

(EUR) (EUR) (EUR) (EUR) (USD) (USD) (USD)

686,207,149 19,112,302 630,857,606 342,927,026 310,655,006 47,711,986 81,204,083- - - - - - -

686,207,149 19,112,302 630,857,606 342,927,026 310,655,006 47,711,986 81,204,083

5,871,411 101,955 5,497,082 - - - -- 90,934 - 3,009,443 3,537,456 1,218,041 810,225

5,092 - - 12 2,866 5,339 1,873- - - - - - -- - - - - - -

618,798 250 694,986 68,644 - 791 -6,495,301 193,139 6,192,068 3,078,099 3,540,322 1,224,171 812,098

3,156,332 76,291 2,438,735 1,263,809 925,400 156,189 236,622776,033 24,091 648,193 423,243 360,847 59,125 109,740

796 23 715 429 385 59 111144,327 4,082 88,013 65,353 18,413 4,985 12,548

37,160 987 35,706 16,110 10,441 2,175 7,5655,778 6,037 5,579 5,606 8,207 4,470 7,743

24,871 726 22,305 13,422 11,977 1,856 3,63531,101 26 21,653 66,024 3,238 1,843 1,862

- - - - 650,665 23,874 -1,005,786 17,243 606,033 160,392 6,300 21,299 40,290

- - - - - - -- - - - - - -- - - - - 2,442 -- - - - - - -

855,863 37,704 154,116 700,510 51,591 - 45,587102,646 2,997 92,066 55,394 53,771 7,651 15,091

6,140,693 170,207 4,113,114 2,770,292 2,101,235 285,968 480,794

(7,132) (3,442) - (347,038) (125,526) (38) (42,274)6,133,561 166,765 4,113,114 2,423,254 1,975,709 285,930 438,520

361,740 26,374 2,078,954 654,845 1,564,613 938,241 373,578(3,660,413) 126,902 35,002,158 1,815,906 (684,360) 155,350 (2,061,048)4,830,411 102,029 13,672 140,052 (1,218,217) - (2,712,854)

- (80,521) - 1,769,644 336,680 - -- - - - 109,593 (186,512) -- - - - 380,762 - -- - - - 418,495 - -- 9,438 - - 732,962 - -

212,161 (682) (235,691) (27,150) (174,630) 8,052 (29,192)1,743,899 183,540 36,859,093 4,353,297 1,465,898 915,131 (4,429,516)

68,433,304 635,653 6,727,770 (2,285,026) (3,222,495) (792,962) (5,379,902)(773,647) (56,339) (356) 821,878 1,583,955 - 658,894

- (27,300) - - 2,033,474 - -- - - - 517,147 660,382 -- - - - 329,292 - -- - - - 137,465 - -- - - - (186,628) - -- - - - (225,959) - -- - - - (97,988) - -

(714,674) (52,483) 157,536 73,789 26,395 (3,403) 536,350- - - - - - -

68,688,882 683,071 43,744,043 2,963,938 2,360,556 779,148 (8,614,174)

113,677,712 3,411,500 76,552,498 109,616,544 44,391,611 11,272,521 38,473,159(123,802,373) (4,558,124) (177,543,384) (75,651,523) (28,739,966) (4,206,823) (29,134,974)

286,722 (6,528) (157,750) 33,583 31,202 21,222 (4,618)(9,837,939) (1,153,152) (101,148,636) 33,998,604 15,682,847 7,086,920 9,333,567

(9,147,553) (269,811) (10,277,845) (3,097,276) (515,210) (1,255,130) (424,401)

(18,985,492) (1,422,963) (111,426,481) 30,901,328 15,167,637 5,831,790 8,909,166

735,910,539 18,372,410 563,175,168 376,792,292 328,183,199 54,322,924 81,499,075

50.38% 119.52% (26.82)% 89.27% 76.86% 103.70% 92.81%





FranklinGlobal Aggregate

Investment GradeBond Fund

FranklinGlobal

ConvertibleSecurities Fund

FranklinGlobal Corporate

HighYield Fund1

FranklinGlobal Equity

StrategiesFund



103,518,562 75,977,729 13,438,911 97,712,355

INCOMEDividends (net of withholding taxes) (note 2(m)) - 429,120 - 911,281Interest on bonds (net of withholding taxes) (note 2(m)) 582,196 324,011 340,177 51,388Bank interest 257 - - 14,098Securities lending (notes 2(n), 13) - - - -Net interest income on swaps - - - -Sundry income - - 8,450 50,198TOTAL INCOME 582,453 753,131 348,627 1,026,965EXPENSESInvestment management fees (note 14) 133,720 288,455 35,444 674,389Administration and transfer agency fees 72,752 99,024 12,379 197,786Directors fees 98 95 - 125Subscription tax (note 17) 4,579 14,229 685 25,932Custodian fees 8,055 1,816 347 11,054Audit fees 4,489 6,670 4,565 5,157Printing and publishing expenses 3,009 2,971 427 3,911Bank charges 1,671 - 1,250 -Net interest expenses on swaps - - - -Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 2,370 80,191 - 194,188Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) - - - -Class AX (acc) shares’ maintenance charges (note 18) - - - -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) - - - -Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) - - - -Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) - 131,057 - 188,906Other charges 12,395 12,253 1,769 19,182TOTAL EXPENSES 243,138 636,761 56,866 1,320,630

Expenses reimbursement (note 19) (35,463) (355) (7,800) (9,406)NET EXPENSES 207,675 636,406 49,066 1,311,224

NET PROFIT/(LOSS) FROM INVESTMENTS 374,778 116,725 299,561 (284,259)Net realised profit/(loss) on sale of investments 325,765 2,591,339 (1,218,022) 827,654Net realised profit/(loss) on forward foreign exchange contracts 36,763 (1,015,706) (262,611) (406,514)Net realised profit/(loss) on financial future contracts - - - -Net realised profit/(loss) on interest rate swap contracts - - - -Net realised profit/(loss) on total return swap contracts - - - -Net realised profit/(loss) on credit default swap contracts - - - -Net realised profit/(loss) on option contracts - - - -Net realised profit/(loss) on foreign exchange transactions (141,122) 36,374 (33,156) (78,535)NET REALISED PROFIT/(LOSS) FOR THE PERIOD 596,184 1,728,732 (1,214,228) 58,346Change in net unrealised appreciation/(depreciation) on:

Investments (2,664,881) (1,350,094) 1,548,385 7,895,437Forward foreign exchange contracts (162,492) 163,935 92,292 22,044Financial future contracts - - - -Interest rate swap contracts - - - -Inflation swap contracts - - - -Cross currency swap contracts - - - -Total return swap contracts - - - -Credit default swap contracts - - - -Option contracts - - - -Foreign exchange transactions 179 165,842 91,608 25,468

Capital gains tax - - - -NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS (2,231,010) 708,415 518,057 8,001,295

MOVEMENT OF CAPITALIssue of shares 21,825,819 30,703,903 736,091 10,961,562Redemption of shares (109,185,337) (21,306,890) (13,687,067) (10,475,771)Equalisation (note 22) (294,908) 30,392 (163,287) 1,687

(87,654,426) 9,427,405 (13,114,263) 487,478

Dividends paid/accumulated (note 23) (831,445) (333,511) (842,705) (73,260)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL (88,485,871) 9,093,894 (13,956,968) 414,218

NET ASSETS AT THE END OF THE PERIOD 12,801,681 85,780,038 - 106,127,868

Portfolio Turnover Ratio (note 24) 81.19% 20.88% N/A 30.08%

1 This Fund was closed on December 2, 2016





FranklinGlobal

FundamentalStrategies Fund

FranklinGlobal

GovernmentBond Fund1

FranklinGlobalGrowth

Fund

FranklinGlobal

Growth andValue Fund

FranklinGlobal High

Income BondFund

FranklinGlobal ListedInfrastructure

Fund

FranklinGlobal

Multi-AssetIncome Fund

(USD) (USD) (USD) (USD) (USD) (USD) (EUR)

1,785,550,418 15,299,814 77,821,576 53,571,056 50,163,239 60,542,687 135,211,370- - - - - - -

1,785,550,418 15,299,814 77,821,576 53,571,056 50,163,239 60,542,687 135,211,370

9,269,201 - 342,381 293,192 29,493 683,596 1,124,20916,653,848 154,114 - - 1,436,289 - 1,018,023

75,429 842 3,053 1,140 158 887 2,487- - - 1,813 - - -- - - - - - -

496,223 614 - 4,912 10,159 85 1,52326,494,701 155,570 345,434 301,057 1,476,099 684,568 2,146,242

9,215,686 31,856 315,369 237,244 199,973 234,416 712,9742,213,438 15,007 89,523 62,600 59,767 71,044 203,771

2,165 - 89 58 61 71 189436,332 2,142 11,331 12,537 12,090 5,479 32,763201,254 1,776 2,710 3,340 1,280 4,044 11,034

7,026 3,038 5,534 4,814 6,817 6,133 7,38267,588 483 2,860 1,803 1,913 2,219 5,95710,127 1,250 - - 1,500 - 27,129

721,101 - - - - - 82,7784,104,138 2,765 70,487 95,895 63,153 27,136 200,418

- - - - - - -- - - - - - -- - - 17,681 - - -- - - 13,294 - - -

967,120 19,571 55,466 29,221 82,700 26,013 358,538288,203 578 25,219 7,439 7,788 9,224 24,594

18,234,178 78,466 578,588 485,926 437,042 385,779 1,667,527

- (4,286) (159) - (107) (3,225) -18,234,178 74,180 578,429 485,926 436,935 382,554 1,667,527

8,260,523 81,390 (232,995) (184,869) 1,039,164 302,014 478,715(11,279,057) (1,108,126) 1,136,117 766,087 (1,630,012) (25,904) 2,526,438(21,050,300) 103,337 (96,951) - (283,960) (129,467) (3,188,085)

- - - - - - 434,60930,890 - - - - - -

- - - - - - -- - - - - - -- - - - - - (1,980,266)

(364,173) (77,869) (3,557) (6,564) (24,092) (22,696) 253,963(24,402,117) (1,001,268) 802,614 574,654 (898,900) 123,947 (1,474,626)

112,202,994 46,191 1,704,856 3,091,592 4,023,135 (2,261,802) 4,641,02545,059,035 (44,653) 104,371 - 47,896 50,668 416,437

- - - - - - (340,989)9,498,293 - - - - - -

- - - - - - -- - - - - - -- - - - - - 308,182- - - - - - (65,452)- - - - - - 755,796

2,761,608 (537) 107,154 3,944 (10,189) 54,323 (138,883)(7,111) - - - - - -

145,112,702 (1,000,267) 2,718,995 3,670,190 3,161,942 (2,032,864) 4,101,490

157,126,252 1,273,389 2,289,474 2,026,787 4,751,224 19,819,319 106,554,159(159,534,790) (15,489,601) (12,910,592) (15,124,768) (7,422,264) (12,369,915) (22,787,262)

(27,235) (533) - - (16,443) 57,063 918,313(2,435,773) (14,216,745) (10,621,118) (13,097,981) (2,687,483) 7,506,467 84,685,210

(19,609,703) (82,802) (46,567) - (1,487,400) (1,561,826) (5,274,684)

(22,045,476) (14,299,547) (10,667,685) (13,097,981) (4,174,883) 5,944,641 79,410,526

1,908,617,644 - 69,872,886 44,143,265 49,150,298 64,454,464 218,723,386

46.72% N/A 60.35% 34.71% 20.75% 93.71% 205.67%





FranklinGlobal

Real EstateFund

FranklinGlobal


FranklinGold andPrecious

Metals Fund

FranklinHighYieldFund


NET ASSETS AT THE BEGINNING OF THE PERIOD 342,101,642 200,170,691 245,152,174 2,648,362,272Currency translation adjustment - - - -

342,101,642 200,170,691 245,152,174 2,648,362,272

INCOMEDividends (net of withholding taxes) (note 2(m)) 3,598,340 1,679,961 452,456 2,495,994Interest on bonds (net of withholding taxes) (note 2(m)) - - 5,534 76,957,005Bank interest 3,767 2,329 599 592Securities lending (notes 2(n), 13) - - - -Net interest income on swaps - - - -Sundry income 57,886 81,376 374 3,153,268TOTAL INCOME 3,659,993 1,763,666 458,963 82,606,859EXPENSESInvestment management fees (note 14) 1,496,060 890,923 1,266,410 10,527,944Administration and transfer agency fees 399,000 228,715 325,753 3,266,851Directors fees 390 228 311 3,161Subscription tax (note 17) 69,714 40,854 62,322 622,422Custodian fees 13,433 8,694 14,102 46,229Audit fees 7,497 4,943 6,507 8,785Printing and publishing expenses 12,141 7,108 9,808 98,622Bank charges - 1,138 150 1,561Net interest expenses on swaps - - - -Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 387,629 336,367 484,250 4,078,886Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) - - - -Class AX (acc) shares’ maintenance charges (note 18) - - - -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) 127,002 16,250 - 2,965,357Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) 149,471 - - 193,109Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) 329,290 109,084 360,611 497,742Other charges 50,083 29,331 39,668 406,897TOTAL EXPENSES 3,041,710 1,673,635 2,569,892 22,717,566

Expenses reimbursement (note 19) (50) (15) - (3,697)NET EXPENSES 3,041,660 1,673,620 2,569,892 22,713,869

NET PROFIT/(LOSS) FROM INVESTMENTS 618,333 90,046 (2,110,929) 59,892,990Net realised profit/(loss) on sale of investments 8,385,188 365,883 1,352,347 (90,907,580)Net realised profit/(loss) on forward foreign exchange contracts (1,654,892) - (1,621,784) (4,090,931)Net realised profit/(loss) on financial future contracts - - - -Net realised profit/(loss) on interest rate swap contracts - - - -Net realised profit/(loss) on total return swap contracts - - - -Net realised profit/(loss) on credit default swap contracts - - - -Net realised profit/(loss) on option contracts - - - -Net realised profit/(loss) on foreign exchange transactions (58,382) (76,761) (38,198) (3,224)NET REALISED PROFIT/(LOSS) FOR THE PERIOD 7,290,247 379,168 (2,418,564) (35,108,745)Change in net unrealised appreciation/(depreciation) on:

Investments (31,816,162) 7,385,603 (60,838,639) 241,904,647Forward foreign exchange contracts 403,304 - 379,304 968,737Financial future contracts - - - -Interest rate swap contracts - - - -Inflation swap contracts - - - -Cross currency swap contracts - - - -Total return swap contracts - - - -Credit default swap contracts - - - -Option contracts - - - -Foreign exchange transactions 377,011 (7,262) 392,330 968,689

Capital gains tax - - - -NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS (23,745,600) 7,757,509 (62,485,569) 208,733,328

MOVEMENT OF CAPITALIssue of shares 69,493,526 27,388,610 196,124,537 397,038,795Redemption of shares (107,404,141) (65,977,255) (168,862,650) (556,344,539)Equalisation (note 22) (142,482) (19,886) - (564,094)

(38,053,097) (38,608,531) 27,261,887 (159,869,838)

Dividends paid/accumulated (note 23) (4,129,690) (894,583) - (83,202,057)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL (42,182,787) (39,503,114) 27,261,887 (243,071,895)

NET ASSETS AT THE END OF THE PERIOD 276,173,255 168,425,086 209,928,492 2,614,023,705

Portfolio Turnover Ratio (note 24) 39.13% 3.99% (38.42)% 35.20%

^ This Fund was launched on November 4, 2016‡ This Fund was launched on December 2, 2016





FranklinIncome

Fund

FranklinIndiaFund

FranklinJapanFund

Franklin K2AlternativeStrategies

Fund

Franklin K2Global MacroOpportunites

Fund^

FranklinK2 Long Short

CreditFund‡

FranklinMENAFund

(USD) (USD) (JPY) (USD) (USD) (USD) (USD)

2,413,536,952 3,238,697,682 26,519,107,459 1,084,826,827 - - 95,875,802- - - - - - -

2,413,536,952 3,238,697,682 26,519,107,459 1,084,826,827 - - 95,875,802

20,596,022 11,360,295 210,883,202 866,943 - - 515,57433,477,105 - - 11,800,646 29,878 101,230 -

248 230,818 - - - - 2,245- - - - - - -- - - - - - -

143,022 - - - 939 - -54,216,397 11,591,113 210,883,202 12,667,589 30,817 101,230 517,819

9,988,523 14,620,511 118,669,835 10,409,351 73,005 75,068 649,0642,847,337 3,921,654 34,109,769 1,233,386 8,100 8,218 150,593

2,816 4,089 32,433 1,272 - - 109579,717 502,624 3,570,206 213,233 - - 19,882

39,273 1,120,458 1,365,274 267,391 2,474 1,686 60,6068,825 9,061 578,552 34,974 14,773 8,375 6,151

87,672 127,953 1,010,800 39,655 283 291 3,3792,851 380 518,781 - - - 197

- - - 317,516 1,637 19,477 -3,528,369 3,451,663 23,643,933 1,010,104 7,130 8,298 145,073

- 4,225 - - - - -- - - - - - -

1,432,405 370,285 - - - - 30,4941,415,465 59,207 1,644,421 - - - -1,752,897 1,095,480 16,081,287 1,714,905 5,853 6,884 72,549

374,713 527,899 4,171,130 423,107 9,626 5,111 13,93522,060,863 25,815,489 205,396,421 15,664,894 122,881 133,408 1,152,032

(4,380) (4,868) (63,523) (1,133,925) (31,438) (23,132) (37)22,056,483 25,810,621 205,332,898 14,530,969 91,443 110,276 1,151,995

32,159,914 (14,219,508) 5,550,304 (1,863,380) (60,626) (9,046) (634,176)(9,778,485) 67,374,439 474,364,411 18,511,302 (9,432) 25,778 (7,065,235)(4,660,738) (1,448,548) 117,730,198 (29,706,983) (338,314) (54,489) (628,179)

- - - 1,555,529 45,425 92 -- - - 199,524 - - -- - - (2,913,962) (79,406) - -- - - 84,845 - - -- - - (10,049,885) (1,879) (5,239) -

(330,666) (752,242) 53,509,180 (352,795) (6,206) (8,008) (13,238)17,390,025 50,954,141 651,154,093 (24,535,805) (450,438) (50,912) (8,340,828)

131,581,403 (140,029,100) 4,620,477,998 17,543,447 (13,380) 593,299 11,716,919603,204 549,909 (7,389,967) 2,199,157 (66,438) (306,423) 82,472

- - - (1,586,589) 68,639 2,337 -- - - (167,553) (8,379) - -- - - 25,533 3,436 4,203 -- - - - - - -- - - 4,729,678 - (25,710) -- - - (227,829) (4,795) 10,445 -- - - 2,736,371 - (1,509) -

616,592 613,370 (7,283,822) 114,249 (230) (7,727) 51,611- - - - - - -

150,191,224 (87,911,680) 5,256,958,302 830,659 (471,585) 218,003 3,510,174

293,805,759 884,651,602 19,768,315,981 248,817,738 24,999,999 52,104,841 15,420,756(503,665,065) (798,803,748) (17,740,669,865) (291,835,795) - - (23,701,573)

(18,380) 36,044 12,859,492 328,118 - - (3,141)(209,877,686) 85,883,898 2,040,505,608 (42,689,939) 24,999,999 52,104,841 (8,283,958)

(64,779,435) (2,240,635) (113,708,775) (11,614) - - (524,802)

(274,657,121) 83,643,263 1,926,796,833 (42,701,553) 24,999,999 52,104,841 (8,808,760)

2,289,071,055 3,234,429,265 33,702,862,594 1,042,955,933 24,528,414 52,322,844 90,577,216

59.91% 28.78% 369.21% 159.76% (87.72)% (38.54)% 181.50%





FranklinNatural

ResourcesFund

FranklinNextStep

Balanced GrowthFund

FranklinNextStep

ConservativeFund

FranklinNextStep

Dynamic GrowthFund



301,524,049 9,828,108 7,141,045 4,497,653

INCOMEDividends (net of withholding taxes) (note 2(m)) 2,269,693 280,062 119,637 60,120Interest on bonds (net of withholding taxes) (note 2(m)) 81,843 - - -Bank interest 30 3,997 1,874 718Securities lending (notes 2(n), 13) 17,907 - - -Net interest income on swaps - - - -Sundry income - 28 15 -TOTAL INCOME 2,369,473 284,087 121,526 60,838EXPENSESInvestment management fees (note 14) 1,678,225 241,579 65,008 67,820Administration and transfer agency fees 423,114 61,787 24,310 17,678Directors fees 387 47 17 14Subscription tax (note 17) 77,183 5,140 1,725 1,980Custodian fees 6,173 48,558 30,433 36,786Audit fees 6,543 6,503 6,407 6,489Printing and publishing expenses 12,121 1,544 541 473Bank charges - 25 10 -Net interest expenses on swaps - - - -Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 627,521 113,685 18,566 39,895Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) - - - -Class AX (acc) shares’ maintenance charges (note 18) - - - -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) 110,661 - - -Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) 30,212 - - -Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) 323,861 - 5,995 -Other charges 50,504 6,399 2,233 1,957TOTAL EXPENSES 3,346,505 485,267 155,245 173,092

Expenses reimbursement (note 19) - (36,177) (44,244) (39,045)NET EXPENSES 3,346,505 449,090 111,001 134,047

NET PROFIT/(LOSS) FROM INVESTMENTS (977,032) (165,003) 10,525 (73,209)Net realised profit/(loss) on sale of investments (6,637,312) (643,447) (127,518) (145,419)Net realised profit/(loss) on forward foreign exchange contracts (1,977,303) (13,559) (947,583) (45,386)Net realised profit/(loss) on financial future contracts - - - -Net realised profit/(loss) on interest rate swap contracts - - - -Net realised profit/(loss) on total return swap contracts - - - -Net realised profit/(loss) on credit default swap contracts - - - -Net realised profit/(loss) on option contracts - - - -Net realised profit/(loss) on foreign exchange transactions (5,996) 52,362 4,071 9,313NET REALISED PROFIT/(LOSS) FOR THE PERIOD (9,597,643) (769,647) (1,060,505) (254,701)Change in net unrealised appreciation/(depreciation) on:

Investments 40,373,909 (825,080) (389,732) (151,810)Forward foreign exchange contracts 431,430 (42,604) 168,807 (24,925)Financial future contracts - - - -Interest rate swap contracts - - - -Inflation swap contracts - - - -Cross currency swap contracts - - - -Total return swap contracts - - - -Credit default swap contracts - - - -Option contracts - - - -Foreign exchange transactions 432,479 (88,479) 138,753 (31,464)

Capital gains tax - - - -NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 31,640,175 (1,725,810) (1,142,677) (462,900)

MOVEMENT OF CAPITALIssue of shares 328,936,566 99,763,201 18,763,255 21,003,522Redemption of shares (290,469,133) (10,817,927) (4,253,399) (2,416,212)Equalisation (note 22) 724 241,759 27,793 41,673

38,468,157 89,187,033 14,537,649 18,628,983

Dividends paid/accumulated (note 23) (138,737) (90,662) (66,770) (27,870)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL 38,329,420 89,096,371 14,470,879 18,601,113


Portfolio Turnover Ratio (note 24) (19.56)% 171.69% 131.86% 193.82%





FranklinNextStep

GrowthFund

FranklinNextStepModerate

Fund

FranklinNextStep

Stable GrowthFund

FranklinReal

ReturnFund

FranklinStrategic

IncomeFund

FranklinTechnology

Fund

FranklinU.S. Dollar

Liquid ReserveFund

(USD) (USD) (USD) (USD) (USD) (USD) (USD)

3,376,470 8,501,020 6,077,952 7,365,332 1,179,933,357 912,322,077 403,995,936- - - - - - -

3,376,470 8,501,020 6,077,952 7,365,332 1,179,933,357 912,322,077 403,995,936

32,956 105,688 97,267 11,391 891,584 2,471,152 -- - - 74,999 19,876,431 1,400 644,446

630 2,137 1,071 - 4,958 - -- - - - - 75,142 -- - - 4,615 2,275,227 - -

14 28 - 298 318,322 - -33,600 107,853 98,338 91,303 23,366,522 2,547,694 644,446

37,231 92,013 58,604 28,569 4,225,803 4,494,944 572,76710,240 30,099 16,199 10,262 1,373,951 1,095,697 249,980

- 20 14 - 1,390 1,101 456959 2,386 1,506 1,823 265,372 207,930 18,874

30,791 43,591 29,000 377 10,702 15,332 7,7196,403 6,408 6,489 4,709 8,421 6,088 5,394

247 637 459 271 43,302 34,356 14,182- - - 1,500 6,121 - 6,665- - - - - - -

13,964 29,707 21,977 13,351 1,714,899 1,633,674 155,747- - - - - - -- - - - - - -- - - - 122,994 122,501 68,623- - - - 627,708 138,183 32,286

5,663 9,662 - 11,389 976,719 690,883 262,6971,017 2,632 1,896 1,129 178,672 142,960 58,516

106,515 217,155 136,144 73,380 9,556,054 8,583,649 1,453,906

(40,665) (62,997) (35,777) (14,756) (914,336) (3,251) (640,013)65,850 154,158 100,367 58,624 8,641,718 8,580,398 813,893

(32,250) (46,305) (2,029) 32,679 14,724,804 (6,032,704) (169,447)37,350 485,893 (92,021) (48,149) (12,673,566) 77,934,614 28

(215,712) (866,822) (30,235) (148,108) (19,337,329) - -- (436,724) - - (1,487,445) - -- - - - - - -- - - - 1,620,550 - -- - - - 30,732 - -- - - - (106,786) - -

7,099 16,869 169 (5,810) (397,721) 187,166 15(203,513) (847,089) (124,116) (169,388) (17,626,761) 72,089,076 (169,404)

57,689 221,289 (321,494) (34,864) 13,983,045 5,914,950 22,94748,763 16,429 (27,071) 31,611 13,083,346 - -

- - - - 144,061 - -- - - - - - -- - - - - - -- - - - - - -- - - - (2,822,193) - -- - - (1,936) (1,310,267) - -- - - - - - -

47,188 8,381 (46,125) 28,873 3,772,298 22,485 -- - - - (2,577) - -

(49,873) (600,990) (518,806) (145,704) 9,220,952 78,026,511 (146,457)

8,418,575 23,430,106 15,142,190 3,496,189 190,565,294 252,194,697 255,718,518(819,042) (2,299,594) (1,685,871) (1,576,121) (297,317,465) (350,089,858) (306,680,057)

10,580 36,612 30,999 (1,172) (303,241) - -7,610,113 21,167,124 13,487,318 1,918,896 (107,055,412) (97,895,161) (50,961,539)

(27,103) (66,947) (63,523) - (24,655,826) - -

7,583,010 21,100,177 13,423,795 1,918,896 (131,711,238) (97,895,161) (50,961,539)

10,909,607 29,000,207 18,982,941 9,138,524 1,057,443,071 892,453,427 352,887,940

205.78% 142.09% 119.70% 14.53% 212.53% 40.22% N/A





FranklinU.S.

EquityFund

FranklinU.S.

GovernmentFund

FranklinU.S. LowDuration

Fund

FranklinU.S.

OpportunitiesFund


NET ASSETS AT THE BEGINNING OF THE PERIOD 506,167,855 1,211,181,698 904,479,104 3,723,344,289Currency translation adjustment - - - -

506,167,855 1,211,181,698 904,479,104 3,723,344,289

INCOMEDividends (net of withholding taxes) (note 2(m)) 2,303,322 - - 8,838,103Interest on bonds (net of withholding taxes) (note 2(m)) 5,188 15,518,406 9,567,375 833Bank interest 21 895 5,467 1,379Securities lending (notes 2(n), 13) 22,340 - - 104,900Net interest income on swaps - - - -Sundry income 13,284 - 81,602 1,033TOTAL INCOME 2,344,155 15,519,301 9,654,444 8,946,248EXPENSESInvestment management fees (note 14) 2,393,849 3,390,055 2,560,749 16,093,949Administration and transfer agency fees 581,619 1,312,596 933,670 3,941,836Directors fees 584 1,380 1,011 4,204Subscription tax (note 17) 116,356 242,547 190,758 774,079Custodian fees 10,607 19,400 8,762 56,196Audit fees 6,993 7,105 5,961 11,984Printing and publishing expenses 18,211 43,069 31,250 130,728Bank charges 748 154 4,563 289Net interest expenses on swaps - - 1,313,567 -Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 863,120 978,861 865,887 5,307,431Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) - - - 17,770Class AX (acc) shares’ maintenance charges (note 18) - 192,321 82,491 -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) 72,229 170,041 38,121 389,716Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) 235,707 160,957 139,002 662,600Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) 380,053 397,616 305,004 2,186,380Other charges 75,105 177,764 128,974 539,078TOTAL EXPENSES 4,755,181 7,093,866 6,609,770 30,116,240

Expenses reimbursement (note 19) (654) (95,979) (398,488) (4,813)NET EXPENSES 4,754,527 6,997,887 6,211,282 30,111,427

NET PROFIT/(LOSS) FROM INVESTMENTS (2,410,372) 8,521,414 3,443,162 (21,165,179)Net realised profit/(loss) on sale of investments 6,270,544 291,912 (1,417,922) 327,196,572Net realised profit/(loss) on forward foreign exchange contracts (1,016,181) (5,413,081) (7,000,928) (12,275,928)Net realised profit/(loss) on financial future contracts - - 995,997 -Net realised profit/(loss) on interest rate swap contracts - - (125,917) -Net realised profit/(loss) on total return swap contracts - - 770,439 -Net realised profit/(loss) on credit default swap contracts - - 1,688,970 -Net realised profit/(loss) on option contracts - - (79,576) -Net realised profit/(loss) on foreign exchange transactions 3,571 5,033 (47,051) 16,856NET REALISED PROFIT/(LOSS) FOR THE PERIOD 2,847,562 3,405,278 (1,772,826) 293,772,321Change in net unrealised appreciation/(depreciation) on:

Investments 49,517,804 (25,347,224) 2,047,734 (127,017,340)Forward foreign exchange contracts 305,305 (110,505) 3,634,356 2,246,614Financial future contracts - - 19,747 -Interest rate swap contracts - - 1,824,698 -Inflation swap contracts - - - -Cross currency swap contracts - - - -Total return swap contracts - - (182,853) -Credit default swap contracts - - (2,271,757) -Option contracts - - - -Foreign exchange transactions 279,296 (110,519) (1,553,057) 2,372,012

Capital gains tax - - (67) -NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 52,949,967 (22,162,970) 1,745,975 171,373,607

MOVEMENT OF CAPITALIssue of shares 62,713,922 391,807,315 254,100,272 356,875,807Redemption of shares (134,629,967) (541,549,688) (334,061,025) (1,264,660,641)Equalisation (note 22) 4,689 (74,128) (41,339) (3,094)

(71,911,356) (149,816,501) (80,002,092) (907,787,928)

Dividends paid/accumulated (note 23) (148,355) (8,272,509) (3,448,597) (35,766)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL (72,059,711) (158,089,010) (83,450,689) (907,823,694)

NET ASSETS AT THE END OF THE PERIOD 487,058,111 1,030,929,718 822,774,390 2,986,894,202

Portfolio Turnover Ratio (note 24) 26.71% 140.30% (1.00)% 63.70%





FranklinU.S. Small-Mid

Cap GrowthFund

FranklinU.S. Total

ReturnFund

FranklinWorld

PerspectivesFund

FranklinMutualBeacon

Fund

FranklinMutual

EuropeanFund

FranklinMutual Global

DiscoveryFund

TempletonAfricaFund

(USD) (USD) (USD) (USD) (EUR) (USD) (USD)

185,731,589 135,545,461 363,338,333 641,560,164 1,808,035,248 942,338,326 77,149,040- - - - - - -

185,731,589 135,545,461 363,338,333 641,560,164 1,808,035,248 942,338,326 77,149,040

364,939 8,400 1,919,553 4,309,887 10,300,204 6,661,313 1,048,2051,568 2,181,826 - 1,497,662 117,188 1,090,443 -

- 613 4,910 655 68 828 4,85615,200 - - - 351,431 112,598 -

- - - - - - -1,076 12,493 13,340 85,313 1,008,602 141,437 36

382,783 2,203,332 1,937,803 5,893,517 11,777,493 8,006,619 1,053,097

849,466 493,995 1,421,029 3,254,529 7,889,632 4,425,344 540,916218,251 163,961 422,940 814,028 2,009,472 1,143,375 130,492

209 173 405 781 2,065 1,126 8942,157 31,262 50,994 136,136 339,527 183,979 15,189

3,566 2,208 19,567 12,988 91,189 34,703 60,3894,886 5,573 5,764 7,679 8,427 8,201 6,3216,512 5,414 12,567 24,385 64,491 35,133 2,867

- 1,621 1,389 15,185 70,730 13,499 227- 144,742 - - - - -

315,723 118,386 300,328 996,495 2,483,651 1,293,325 106,836- - - - - - -- - - - - - -

26,288 - - 25,130 97,730 39,093 -98,894 73,188 - 213,720 108,317 207,521 -95,464 150,285 293,395 581,564 1,012,135 783,151 56,20926,858 22,347 52,428 100,608 266,223 144,939 13,390

1,688,274 1,213,155 2,580,806 6,183,228 14,443,589 8,313,389 932,925

- (118,016) (77) - (17,737) (49) (115,857)1,688,274 1,095,139 2,580,729 6,183,228 14,425,852 8,313,340 817,068

(1,305,491) 1,108,193 (642,926) (289,711) (2,648,359) (306,721) 236,02911,291,250 (543,009) 7,344,660 14,249,916 16,449,953 7,171,908 (2,329,563)

- (297,981) - (445,293) 5,969,951 (5,616,102) (1,257,760)- (498,323) - - - - -- - - - - - -- 49,879 - - - - -- 34,830 - - - - -- (20,640) - - - - -- (26,541) (7,321) (1,198,274) (1,400,395) (862,556) 3,399

9,985,759 (193,592) 6,694,413 12,316,638 18,371,150 386,529 (3,347,895)

(1,558,004) (4,008,646) 19,216,198 66,710,718 186,855,749 93,467,317 (1,425,325)- 1,327,462 - (165,374) (1,739,818) 555,801 138,864- 4,241 - - - - -- - - - - - -- - - - - - -- 8,478 - - - - -- (9,663) - - - - -- (25,966) - - - - -- - - - - - -- 186 (32,004) 255,802 (1,638,640) 600,627 54,508- (16) - - - - -

8,427,755 (2,897,516) 25,878,607 79,117,784 201,848,441 95,010,274 (4,579,848)

22,695,681 50,573,598 48,117,398 258,467,566 154,819,272 107,274,259 12,842,590(64,196,287) (41,547,776) (117,939,616) (149,470,875) (337,102,870) (137,139,029) (17,395,363)

- 22,501 (633) 221,708 (45,838) 63,101 (16,729)(41,500,606) 9,048,323 (69,822,851) 109,218,399 (182,329,436) (29,801,669) (4,569,502)

- (1,066,172) (551,774) (4,141,352) (44,952,279) (9,844,264) (1,429,334)

(41,500,606) 7,982,151 (70,374,625) 105,077,047 (227,281,715) (39,645,933) (5,998,836)

152,658,738 140,630,096 318,842,315 825,754,995 1,782,601,974 997,702,667 66,570,356

39.78% 525.96% 154.03% 61.21% 18.51% 24.82% 51.84%





TempletonASEAN

Fund

TempletonAsianBondFund

TempletonAsian

DividendFund

TempletonAsian

GrowthFund


NET ASSETS AT THE BEGINNING OF THE PERIOD 3,271,801 841,044,530 5,387,957 4,508,040,016Currency translation adjustment - - - -

3,271,801 841,044,530 5,387,957 4,508,040,016

INCOMEDividends (net of withholding taxes) (note 2(m)) 53,817 - 105,012 54,683,925Interest on bonds (net of withholding taxes) (note 2(m)) - 19,050,592 - -Bank interest - 80,022 727 69,892Securities lending (notes 2(n), 13) - - - -Net interest income on swaps - - - -Sundry income - - - 860TOTAL INCOME 53,817 19,130,614 105,739 54,754,677EXPENSESInvestment management fees (note 14) 28,031 2,822,362 31,532 30,866,369Administration and transfer agency fees 5,104 904,319 6,911 5,525,551Directors fees - 973 - 5,597Subscription tax (note 17) 947 175,137 1,017 1,032,959Custodian fees 1,399 213,251 1,182 1,299,024Audit fees 4,789 10,788 5,841 13,764Printing and publishing expenses 145 30,233 196 174,614Bank charges - 3,252 - 1,744Net interest expenses on swaps - 3,176,820 - -Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 10,382 814,771 6,449 9,434,387Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) - - - -Class AX (acc) shares’ maintenance charges (note 18) - - - -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) - 46,010 - 227,809Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) - 91,772 - 230,005Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) - 251,232 5,581 1,405,843Other charges 606 131,256 999 720,284TOTAL EXPENSES 51,403 8,672,176 59,708 50,937,950

Expenses reimbursement (note 19) (5,717) (7,727) (5,636) (5,018)NET EXPENSES 45,686 8,664,449 54,072 50,932,932

NET PROFIT/(LOSS) FROM INVESTMENTS 8,131 10,466,165 51,667 3,821,745Net realised profit/(loss) on sale of investments 114,827 (34,434,591) (279,170) 231,606,378Net realised profit/(loss) on forward foreign exchange contracts - (45,765,328) (17,680) (18,128,978)Net realised profit/(loss) on financial future contracts - - - -Net realised profit/(loss) on interest rate swap contracts - - - -Net realised profit/(loss) on total return swap contracts - - - -Net realised profit/(loss) on credit default swap contracts - - - -Net realised profit/(loss) on option contracts - - 3,721 -Net realised profit/(loss) on foreign exchange transactions (184) (956,257) 2,843 (1,372,657)NET REALISED PROFIT/(LOSS) FOR THE PERIOD 122,774 (70,690,011) (238,619) 215,926,488Change in net unrealised appreciation/(depreciation) on:

Investments (404,979) 3,824,192 85,563 347,831,183Forward foreign exchange contracts - 62,184,467 (309) 2,113,970Financial future contracts - - - -Interest rate swap contracts - 19,888,714 - -Inflation swap contracts - - - -Cross currency swap contracts - - - -Total return swap contracts - - - -Credit default swap contracts - - - -Option contracts - - 2,060 -Foreign exchange transactions (29) 1,818,813 (543) 2,053,634

Capital gains tax - (36,140) - -NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS (282,234) 16,990,035 (151,848) 567,925,275

MOVEMENT OF CAPITALIssue of shares 1,586,434 101,659,578 776,463 532,097,038Redemption of shares (73,359) (244,567,757) (2,277,790) (823,008,988)Equalisation (note 22) 4,372 (700,602) (33,745) (304,214)

1,517,447 (143,608,781) (1,535,072) (291,216,164)

Dividends paid/accumulated (note 23) (19,843) (21,002,128) (265,606) (29,779,032)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL 1,497,604 (164,610,909) (1,800,678) (320,995,196)

NET ASSETS AT THE END OF THE PERIOD 4,487,171 693,423,656 3,435,431 4,754,970,095






TempletonAsian Smaller

CompaniesFund

TempletonBRICFund

TempletonChinaFund

TempletonEasternEurope

Fund

TempletonEmerging

MarketsFund


BalancedFund

TempletonEmerging

MarketsBond Fund

(USD) (USD) (USD) (EUR) (USD) (USD) (USD)

1,126,815,386 683,471,085 529,554,974 270,212,102 525,175,142 44,032,095 3,822,276,997- - - - - - -

1,126,815,386 683,471,085 529,554,974 270,212,102 525,175,142 44,032,095 3,822,276,997

17,326,794 8,966,746 5,251,368 2,624,965 5,340,668 262,023 -- - - - - 747,796 171,440,558

98,090 26,616 4,588 - 57,446 - 172,654- - - - - - -- - - - - - -- 370 - 79,399 - 3,886 1,412,139

17,424,884 8,993,732 5,255,956 2,704,364 5,398,114 1,013,705 173,025,351

7,267,416 5,906,427 4,244,818 2,127,242 4,613,861 295,939 18,403,9411,478,428 952,342 662,735 385,854 742,512 75,591 4,687,930

1,462 866 647 327 680 55 4,669211,334 178,819 128,218 61,623 134,949 10,479 764,275340,760 163,339 76,396 116,309 109,473 9,336 1,209,058

6,254 7,815 6,544 6,016 7,675 7,964 14,08045,747 28,014 20,232 10,196 21,288 1,852 146,088

388 12 4,600 19,703 95 1,843 70,275- - - - - 27,415 6,415,388

1,743,258 1,691,292 1,142,299 571,873 1,228,890 76,211 6,300,865- - - - - - -- - - - - - -

87,302 55,851 163,240 38,471 44,053 1,421 2,583,106- 55,164 44,221 2,065 84,539 5,567 118,506

259,911 222,853 106,561 52,383 219,954 38,863 494,451188,714 222,047 83,474 60,248 111,382 9,001 602,701

11,630,974 9,484,841 6,683,985 3,452,310 7,319,351 561,537 41,815,333

(3,552) (173) (887) (8,989) (2,157) (37,163) (13,785)11,627,422 9,484,668 6,683,098 3,443,321 7,317,194 524,374 41,801,548

5,797,462 (490,936) (1,427,142) (738,957) (1,919,080) 489,331 131,223,80324,881,414 9,936,828 (205,912) 9,101,857 11,455,951 (309,398) (253,711,262)

- (776,704) - - (817,931) (645,758) (41,305,591)- - - - - - -- - - - - - (3,760,896)- - - - - - -- - - - - - -- - - - - - -

(172,172) 97,308 27,573 (18,069) (21,416) 1,429 (2,973,780)30,506,704 8,766,496 (1,605,481) 8,344,831 8,697,524 (464,396) (170,527,726)

(20,107,096) 48,811,619 27,739,966 28,995,041 20,756,142 1,629,399 212,494,055- 52,958 - - 40,352 26,144 87,766,265- - - - - - -- - - - - 332,658 74,540,751- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -

20,118 60,082 (17,019) 17,107 44,840 128,712 (1,976,104)- - - - - (23) (7,352)

10,419,726 57,691,155 26,117,466 37,356,979 29,538,858 1,652,494 202,289,889

348,355,147 78,787,570 85,786,603 26,149,632 144,820,516 14,783,266 1,340,895,948(317,263,488) (121,784,151) (127,335,572) (39,388,109) (132,667,623) (12,540,588) (1,154,483,555)

107,915 2,490 (45,333) (15,598) (4,320) 4,062 2,364,34531,199,574 (42,994,091) (41,594,302) (13,254,075) 12,148,573 2,246,740 188,776,738

(11,752,034) (3,181) (886,171) (441,391) (162,749) (977,412) (184,861,858)

19,447,540 (42,997,272) (42,480,473) (13,695,466) 11,985,824 1,269,328 3,914,880

1,156,682,652 698,164,968 513,191,967 293,873,615 566,699,824 46,953,917 4,028,481,766

(5.55)% 29.03% (2.71)% 121.10% 10.84% 26.21% 52.24%






Smaller CompaniesFund

TempletonEuroland

Fund

TempletonEuropean

Fund

TempletonFrontierMarkets

Fund(USD) (EUR) (EUR) (USD)


483,632,814 225,841,210 217,815,064 816,651,982

INCOMEDividends (net of withholding taxes) (note 2(m)) 6,303,504 1,268,181 1,745,198 8,296,895Interest on bonds (net of withholding taxes) (note 2(m)) 25,866 - - -Bank interest 7,377 - - 49,750Securities lending (notes 2(n), 13) - 50,932 55,042 -Net interest income on swaps - - - -Sundry income 6,352 79,536 56,182 -TOTAL INCOME 6,343,099 1,398,649 1,856,422 8,346,645EXPENSESInvestment management fees (note 14) 3,670,154 1,134,779 1,069,156 5,683,805Administration and transfer agency fees 628,486 303,475 262,107 998,881Directors fees 625 278 257 973Subscription tax (note 17) 88,716 46,409 51,058 136,102Custodian fees 191,168 13,069 12,059 564,270Audit fees 6,817 4,786 5,050 7,439Printing and publishing expenses 19,598 8,686 8,025 30,345Bank charges - 14,382 2,827 157Net interest expenses on swaps - - - -Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 622,623 410,534 487,074 872,545Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) - - - -Class AX (acc) shares’ maintenance charges (note 18) - - - -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) - 32,450 - 1,822Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) 38,456 - - 8,999Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) 166,725 175,501 55,050 483,373Other charges 195,011 35,834 33,113 125,203TOTAL EXPENSES 5,628,379 2,180,183 1,985,776 8,913,914

Expenses reimbursement (note 19) (907) - - (846)NET EXPENSES 5,627,472 2,180,183 1,985,776 8,913,068

NET PROFIT/(LOSS) FROM INVESTMENTS 715,627 (781,534) (129,354) (566,423)Net realised profit/(loss) on sale of investments 6,290,760 11,059,420 (4,267,058) (4,386,750)Net realised profit/(loss) on forward foreign exchange contracts - - - (5,715,070)Net realised profit/(loss) on financial future contracts - - - -Net realised profit/(loss) on interest rate swap contracts - - - -Net realised profit/(loss) on total return swap contracts - - - -Net realised profit/(loss) on credit default swap contracts - - - -Net realised profit/(loss) on option contracts - - - -Net realised profit/(loss) on foreign exchange transactions (191,221) (18,104) (111,342) (161,084)NET REALISED PROFIT/(LOSS) FOR THE PERIOD 6,815,166 10,259,782 (4,507,754) (10,829,327)Change in net unrealised appreciation/(depreciation) on:

Investments 4,989,328 39,945,837 40,427,638 62,509,169Forward foreign exchange contracts - - - 668,700Financial future contracts - - - -Interest rate swap contracts - - - -Inflation swap contracts - - - -Cross currency swap contracts - - - -Total return swap contracts - - - -Credit default swap contracts - - - -Option contracts - - - -Foreign exchange transactions 11,680 (10,090) 18,587 678,377

Capital gains tax - - - -NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 11,816,174 50,195,529 35,938,471 53,026,919

MOVEMENT OF CAPITALIssue of shares 161,543,183 191,483,281 13,831,937 79,947,656Redemption of shares (120,981,262) (134,213,714) (42,767,590) (125,551,285)Equalisation (note 22) 132,077 (41,272) (3,471) (66,240)

40,693,998 57,228,295 (28,939,124) (45,669,869)

Dividends paid/accumulated (note 23) (3,846,673) (2,479,984) (3,337,501) (19,060,241)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL 36,847,325 54,748,311 (32,276,625) (64,730,110)


Portfolio Turnover Ratio (note 24) (11.31)% 3.16% 18.12% 25.88%

# This Fund was launched on October 7, 2016





TempletonGlobalFund

TempletonGlobal(Euro)Fund

TempletonGlobal

BalancedFund

TempletonGlobalBondFund

TempletonGlobal Bond

(Euro)Fund

TempletonGlobal

CurrencyFund#

TempletonGlobal Equity

IncomeFund

(USD) (EUR) (USD) (USD) (EUR) (USD) (USD)

1,159,102,438 620,499,565 938,407,418 22,001,556,826 365,968,734 - 164,081,704- - - - - - -

1,159,102,438 620,499,565 938,407,418 22,001,556,826 365,968,734 - 164,081,704

9,075,362 4,821,997 5,166,579 - - - 2,331,446- - 6,032,441 528,488,085 8,364,998 79,711 -

66,663 - 319 1,830,060 6,313 - 2,82681,392 57,942 15,731 - - - 18,234

- - - - - - -266,697 137,558 596,331 9,918,904 364,892 - 151,738

9,490,114 5,017,497 11,811,401 540,237,049 8,736,203 79,711 2,504,244

5,451,847 3,293,719 3,717,140 70,246,921 1,267,693 12,549 815,3401,365,686 806,667 1,161,078 22,307,311 396,451 3,964 204,509

1,379 762 1,112 24,420 416 - 194239,189 156,220 226,121 4,323,447 81,478 - 40,453

67,758 27,207 3,190 5,119,392 77,796 811 12,0406,524 5,245 7,188 27,285 4,539 4,011 6,234

42,954 23,846 34,680 758,616 12,979 137 6,034- 22,613 1,865 279,494 46,252 - -- - - 44,946,927 516,220 - -

2,166,684 1,607,851 1,377,710 18,630,804 356,782 1,664 341,62245,145 - 427,821 - - - 29,837

- - - 810,908 - - -86,351 623 202,976 989,138 - - 98,34053,846 - 158,160 2,497,770 - - -

150,409 46,637 379,878 12,084,264 376,428 4,841 1,093177,140 98,392 143,071 3,130,333 53,564 573 24,895

9,854,912 6,089,782 7,841,990 186,177,030 3,190,598 28,550 1,580,591

(94) - (7,246) (51,056) (107) (4,146) (151,809)9,854,818 6,089,782 7,834,744 186,125,974 3,190,491 24,404 1,428,782

(364,704) (1,072,285) 3,976,657 354,111,075 5,545,712 55,307 1,075,462(34,859,883) (1,624,600) (26,867,301) (1,010,602,024) (7,306,604) - (10,186,561)

- (104,835) (1,593,220) (1,027,057,325) (8,518,081) (84,777) (18,617)- - - - - - -- - - - (623,690) - -- - - - - - -- - - - - - -- - - - - - 29,407

(113,594) 60,102 (407,967) (25,255,054) 749,189 (2,084) 3,135(35,338,181) (2,741,618) (24,891,831) (1,708,803,328) (10,153,474) (31,554) (9,097,174)

164,805,259 105,779,086 82,750,226 (169,389,813) 4,594,311 (239,648) 26,278,529- 795 1,835,509 2,143,889,051 1,590,991 195,586 2,186- - - - - - -- - - 479,405,980 8,051,794 - -- - - - - - -- - - - - - -- - - - - - -- - - - - - -- - - - - - (59,189)

100,672 33,048 (90,252) 136,050,524 (31,813) 14,015 31,682- - - (217,386) 450 - -

129,567,750 103,071,311 59,603,652 880,935,028 4,052,259 (61,601) 17,156,034

87,994,622 15,920,790 77,106,975 3,457,720,682 51,762,594 8,004,970 8,330,868(206,627,786) (33,084,180) (154,655,891) (7,214,739,567) (87,401,814) - (28,219,897)

(125,620) (980) (732,962) (13,622,557) (367,961) 24 (125,686)(118,758,784) (17,164,370) (78,281,878) (3,770,641,442) (36,007,181) 8,004,994 (20,014,715)

(10,040,759) (5,177,564) (18,294,512) (620,885,916) (7,427,514) - (4,087,870)

(128,799,543) (22,341,934) (96,576,390) (4,391,527,358) (43,434,695) 8,004,994 (24,102,585)

1,159,870,645 701,228,942 901,434,680 18,490,964,496 326,586,298 7,943,393 157,135,153

34.29% 32.34% 17.15% 60.08% 78.90% (53.41)% 23.84%





TempletonGlobal

High YieldFund

TempletonGlobal

IncomeFund

TempletonGlobal Smaller

CompaniesFund

TempletonGlobal

Total ReturnFund


NET ASSETS AT THE BEGINNING OF THE PERIOD 163,016,307 1,481,892,095 113,758,358 21,120,878,212Currency translation adjustment - - - -

163,016,307 1,481,892,095 113,758,358 21,120,878,212

INCOMEDividends (net of withholding taxes) (note 2(m)) 220,081 10,939,674 727,378 30,827Interest on bonds (net of withholding taxes) (note 2(m)) 5,337,613 11,329,084 - 662,088,084Bank interest 3,325 27,592 9,846 1,887,745Securities lending (notes 2(n), 13) - - - -Net interest income on swaps - - - -Sundry income 55,692 381,313 74,974 2,997,632TOTAL INCOME 5,616,711 22,677,663 812,198 667,004,288EXPENSESInvestment management fees (note 14) 715,954 5,396,089 586,503 68,924,950Administration and transfer agency fees 201,429 1,532,801 147,555 22,300,533Directors fees 200 1,616 138 23,855Subscription tax (note 17) 39,249 302,191 28,452 3,892,826Custodian fees 25,681 157,054 8,027 6,621,642Audit fees 6,193 8,268 5,246 26,711Printing and publishing expenses 6,262 50,204 4,302 742,108Bank charges 2,413 9,981 - 244,252Net interest expenses on swaps 60,234 688,473 - 56,522,751Class A (dis) and Class A (acc) shares’ maintenance charges (note 18) 307,179 1,860,983 279,124 15,505,905Class AS (dis) and Class AS (acc) shares’ maintenance charges (note 18) - - - -Class AX (acc) shares’ maintenance charges (note 18) - - - -Class B (dis) and Class B (acc) shares’ maintenance and service charges (note 18) - 244,330 9,492 1,006,568Class C (dis) and Class C (acc) shares’ maintenance and service charges (note 18) - 472,858 83 1,562,755Class N (dis) and Class N (acc) shares’ maintenance charges (note 18) 185,080 1,355,172 23,153 15,453,331Other charges 25,831 211,514 17,745 3,061,533TOTAL EXPENSES 1,575,705 12,291,534 1,109,820 195,889,720

Expenses reimbursement (note 19) - (16,483) - (612,891)NET EXPENSES 1,575,705 12,275,051 1,109,820 195,276,829

NET PROFIT/(LOSS) FROM INVESTMENTS 4,041,006 10,402,612 (297,622) 471,727,459Net realised profit/(loss) on sale of investments (4,218,013) (66,167,909) 689,546 (786,347,695)Net realised profit/(loss) on forward foreign exchange contracts 637,624 (7,679,826) - (590,242,208)Net realised profit/(loss) on financial future contracts - - - -Net realised profit/(loss) on interest rate swap contracts - - - -Net realised profit/(loss) on total return swap contracts - - - -Net realised profit/(loss) on credit default swap contracts - - - -Net realised profit/(loss) on option contracts - - - -Net realised profit/(loss) on foreign exchange transactions (113,998) (436,699) (17,269) (4,065,242)NET REALISED PROFIT/(LOSS) FOR THE PERIOD 346,619 (63,881,822) 374,655 (908,927,686)Change in net unrealised appreciation/(depreciation) on:

Investments 6,344,879 128,869,023 9,937,690 (11,339,185)Forward foreign exchange contracts 1,564,804 36,146,518 - 1,535,839,138Financial future contracts - - - -Interest rate swap contracts 583,306 7,672,854 - 544,938,085Inflation swap contracts - - - -Cross currency swap contracts - - - -Total return swap contracts - - - -Credit default swap contracts - - - -Option contracts - - - -Foreign exchange transactions (74,540) (100,927) (2,591) 30,387,931

Capital gains tax (228) (1,185) - (103,388)NET INCREASE/(DECREASE) IN NET ASSETS AS A RESULT OF OPERATIONS 8,764,840 108,704,461 10,309,754 1,190,794,895

MOVEMENT OF CAPITALIssue of shares 35,082,136 184,052,409 7,646,796 2,202,214,630Redemption of shares (27,169,187) (533,879,664) (14,500,804) (4,857,054,496)Equalisation (note 22) 12,809 (2,722,299) (226) (14,217,768)

7,925,758 (352,549,554) (6,854,234) (2,669,057,634)

Dividends paid/accumulated (note 23) (5,692,978) (34,323,180) (9,101) (735,670,568)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL 2,232,780 (386,872,734) (6,863,335) (3,404,728,202)

NET ASSETS AT THE END OF THE PERIOD 174,013,927 1,203,723,822 117,204,777 18,906,944,905






TempletonGrowth(Euro)Fund

TempletonKoreaFund

TempletonLatin

AmericaFund

TempletonThailand

Fund

(EUR) (USD) (USD) (USD)

6,563,260,233 38,599,896 1,103,673,787 143,285,738- - - -

6,563,260,233 38,599,896 1,103,673,787 143,285,738

54,346,331 45,962 16,893,134 1,716,5251,758,879 - - -

120,644 3,356 38,522 12,828352,447 - - -

- - - -790,050 - - -

57,368,351 49,318 16,931,656 1,729,353

35,232,188 314,942 7,769,572 1,179,7818,513,412 63,902 1,437,015 195,047

8,134 47 1,359 1751,646,099 9,668 256,290 36,501

482,148 8,558 274,457 38,8748,476 5,115 7,091 5,569

254,542 1,457 42,475 5,455805,987 - 1,722 -

- - - -17,290,123 92,368 2,446,565 333,662

- - - -- - - -

3,024 - 68,672 27,951- 286 14,623 -

175,300 11,470 180,170 51,3131,172,122 6,010 251,285 22,487

65,591,555 513,823 12,751,296 1,896,815

- - (790) (73)65,591,555 513,823 12,750,506 1,896,742

(8,223,204) (464,505) 4,181,150 (167,389)153,768,631 (798,693) 15,112,913 12,084,710

- - (2,984,899) -- - - -- - - -- - - -- - - -- - - -

2,717,225 (40,671) (955,144) (109,359)148,262,652 (1,303,869) 15,354,020 11,807,962

954,211,318 815,082 (22,594,392) (6,394,205)- - 1,255,460 -- - - -- - - -- - - -- - - -- - - -- - - -- - - -

(142,053) (27,945) 1,318,669 (4,031)- - - -

1,102,331,917 (516,732) (4,666,243) 5,409,726

174,542,350 8,245,527 189,013,756 68,175,871(216,029,238) (9,369,677) (220,224,399) (77,703,475)

16,150 - (28,508) (22,475)(41,470,738) (1,124,150) (31,239,151) (9,550,079)

(37,862,880) - (8,012,139) (886,381)

(79,333,618) (1,124,150) (39,251,290) (10,436,460)

7,586,258,532 36,959,014 1,059,756,254 138,259,004

51.50% 188.84% 13.24% 89.91%





TotalExpense RatioDecember 31,

2016(See Note 25)

SharesOutstanding

December 31,2016

Net Asset Value per Share

December 31,2016

June 30,2016

June 30,2015

Franklin Asia Credit Fund – USDA (acc) USD 1.50% 208,045.341 10.50 10.50 10.06A (Mdis) AUD-H1 (hedged) 1.50% 229,568.420 10.09 10.25 10.10A (Mdis) SGD-H1 (hedged) 1.50% 259,620.000 9.81 10.01 9.96A (Mdis) USD 1.50% 182,982.325 9.74 9.94 9.93I (acc) USD 0.97% 212,395.000 10.62 10.59 10.09Y (Mdis) USD 0.20% 500.000 10.14 10.28 -

Franklin Biotechnology Discovery Fund – USDA (acc) CHF-H1 (hedged) 1.84% 249,956.827 13.34 12.61 18.80A (acc) HKD 1.82% 1,269,452.101 17.49 16.38 24.12A (acc) SGD 1.82% 939,133.911 28.54 24.85 36.64A (acc) USD 1.82% 67,542,199.584 27.06 25.33 37.34B (acc) USD 3.13% 1,056,604.741 21.86 20.60 30.77C (acc) USD 2.40% 478,324.740 32.25 30.27 44.89I (acc) EUR-H1 (hedged) 0.97% 405,098.620 18.09 16.96 24.86I (acc) USD 0.97% 2,438,694.820 40.39 37.64 55.02N (acc) USD 2.57% 6,447,846.724 23.68 22.24 33.04W (acc) USD 1.07% 2,214,994.586 12.68 11.82 17.29Z (acc) GBP 1.32% 119,384.796 28.61 24.67 30.72Z (acc) USD* 1.31% 35,364.955 9.74 - -

Franklin Brazil Opportunities Fund – USDA (acc) EUR-H1 (hedged) 1.96% 200,166.077 10.06 9.48 10.10A (acc) USD 1.95% 464,541.305 10.25 9.59 10.19A (Qdis) HKD 1.96% 5,560.398 8.37 8.15 9.37A (Qdis) USD 1.95% 275,205.778 8.34 8.13 9.36I (acc) USD 1.06% 66,906.000 10.63 9.90 10.42N (acc) EUR-H1 (hedged) 2.47% 376,769.424 9.87 9.32 9.98N (acc) USD 2.45% 688,471.131 10.03 9.41 10.04N (Qdis) USD 2.46% 557,857.409 8.27 8.08 9.34

Franklin Diversified Balanced Fund – EURA (acc) CZK-H1 (hedged) 1.57% 61,941.924 101.25 99.97 -A (acc) EUR 1.57% 4,549,689.936 13.37 13.18 13.62A (acc) SGD-H1 (hedged)* 1.53% 34,575.429 10.06 - -A (Qdis) EUR 1.57% 17,027.885 9.35 9.42 9.98A (Ydis) EUR 1.58% 1,845,462.682 13.17 13.19 13.63I (acc) EUR 0.83% 4,604,848.055 14.07 13.82 14.18I (acc) USD-H1 (hedged)* 0.80% 24,801.255 10.07 - -I (Qdis) EUR 0.78% 447.828 9.45 9.49 9.98I (Ydis) EUR 0.83% 36,576.445 14.05 13.81 14.17N (acc) EUR 2.37% 385,710.895 12.49 12.37 12.88N (Ydis) EUR 2.38% 31,799.454 9.36 9.58 9.98W (Ydis) EUR 0.96% 1,658.609 9.86 9.99 -

Franklin Diversified Conservative Fund – EURA (acc) CZK-H1 (hedged) 1.44% 60,726.361 99.94 100.25 -A (acc) EUR 1.43% 4,222,952.503 13.55 13.57 13.50A (acc) SGD-H1 (hedged)* 1.38% 34,575.429 9.96 - -A (Qdis) EUR 1.43% 336,876.349 9.73 9.90 10.02A (Ydis) EUR 1.44% 3,653,006.459 13.39 13.57 13.50I (acc) EUR 0.78% 2,743,350.289 14.12 14.10 13.94I (acc) USD-H1 (hedged)* 0.75% 24,801.255 9.98 - -I (Qdis) EUR 0.74% 447.828 9.81 9.95 10.02I (Ydis) EUR 0.76% 832.093 14.01 14.10 13.93N (acc) EUR 2.34% 5,139,018.394 12.51 12.59 12.64N (acc) USD-H1 (hedged)* 2.27% 24,801.254 9.95 - -N (Ydis) EUR 2.35% 404,678.735 9.67 9.97 10.02W (Ydis) EUR 0.85% 2,101.073 10.16 10.22 -

Franklin Diversified Dynamic Fund – EURA (acc) CZK-H1 (hedged) 1.72% 61,684.641 102.19 99.74 -A (acc) EUR 1.72% 5,188,341.302 13.30 12.96 13.75A (acc) NOK-H1 (hedged) 1.71% 216,996.791 9.63 9.32 -A (acc) SEK-H1 (hedged) 1.72% 217,957.086 9.47 9.24 -A (acc) SGD-H1 (hedged)* 1.67% 35,176.631 10.11 - -A (Ydis) EUR 1.72% 286,639.101 13.30 12.96 13.74I (acc) EUR 0.95% 5,175.197 14.12 13.70 14.42I (acc) USD-H1 (hedged)* 0.84% 24,801.254 10.12 - -I (Ydis) EUR 0.89% 343.506 14.14 13.72 14.43N (acc) EUR 2.47% 89,413.345 12.26 11.99 12.81W (Ydis) EUR 0.99% 442.204 9.79 9.84 -

Franklin Euro Government Bond Fund – EURA (Ydis) EUR 1.05% 2,369,710.992 11.28 11.60 11.04I (acc) EUR 0.63% 3,163,178.049 15.66 15.91 14.99I (Qdis) EUR 0.61% 596,750.009 11.03 11.26 10.71N (acc) EUR 1.60% 1,741,935.622 13.76 14.06 13.37

Franklin Euro High Yield Fund – EURA (acc) EUR 1.54% 3,311,516.256 18.27 17.47 17.45A (Mdis) EUR 1.53% 54,055,119.476 6.21 6.07 6.39A (Mdis) USD 1.53% 2,674,173.946 8.26 8.53 9.02A (Mdis) USD-H1 (hedged) 1.51% 3,162,118.122 9.90 9.62 10.05


Statistical Information



2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin Euro High Yield Fund – EUR (continued)A (Ydis) EUR 1.53% 8,128,273.546 6.33 6.38 6.66B (Mdis) EUR 2.94% 656,833.994 11.31 11.14 11.90B (Mdis) USD 2.94% 1,314,505.787 8.49 8.82 9.46I (acc) EUR 0.88% 6,145,344.626 19.94 19.01 18.87I (Ydis) EUR 0.88% 132,899.903 9.66 9.71 10.13N (acc) EUR 2.13% 5,938,402.703 16.56 15.88 15.96W (acc) EUR 1.00% 15,410.645 11.43 10.89 10.83

Franklin Euro Short Duration Bond Fund – EURA (acc) EUR 0.90% 1,563,517.312 10.25 10.21 10.12A (Ydis) EUR 0.90% 90,866.225 10.19 10.21 10.12I (acc) EUR 0.55% 4,882,878.658 10.35 10.29 10.17N (acc) EUR 1.45% 1,885,950.431 10.09 10.08 10.04W (acc) EUR 0.60% 298.256 10.34 10.28 10.16Y (Mdis) EUR 0.06% 1,746,104.734 10.07 10.02 -

Franklin Euro Short-Term Money Market Fund – EURA (acc) EUR 0.22% 109,979.372 1,006.48 1,008.69 1,011.62I (acc) EUR 0.22% 25,722.548 1,009.13 1,011.35 1,014.29

Franklin Euroland Fund – EURA (acc) EUR 1.90% 368,820.716 19.79 17.64 20.44A (acc) USDΩ - - - 15.40 17.92I (acc) EUR 1.00% 340,404.595 21.25 18.86 21.66I (acc) USDΩ - - - 16.48 19.00N (acc) EUR 2.66% 388,866.193 18.62 16.66 19.45

Franklin European Fund – EURA (acc) EUR 1.97% 174,120.207 14.76 13.66 16.32A (Ydis) EUR 1.97% 88,219.543 14.00 13.01 15.69I (acc) EUR 1.05% 137,561.043 15.49 14.27 16.88N (acc) EUR 2.72% 183,891.124 14.18 13.17 15.85

Franklin European Corporate Bond Fund – EURA (acc) EUR 1.14% 1,448,746.264 13.02 12.84 12.42A (Ydis) EUR 1.15% 790,495.318 11.37 11.45 11.24I (acc) EUR 0.65% 4,745,855.443 13.47 13.24 12.75I (Ydis) EUR 0.65% 22,580.655 11.45 11.50 11.28N (acc) EUR 1.99% 1,673,675.291 12.31 12.18 11.89N (Ydis) EUR 1.99% 1,042,502.832 11.21 11.34 11.15W (acc) EUR 0.75% 364.618 10.82 10.64 10.26Y (Mdis) EUR 0.05% 515,562.163 10.34 10.24 10.00

Franklin European Dividend Fund – EURA (acc) EUR 1.87% 1,074,846.543 15.91 14.58 16.16A (Mdis) SGD-H1 (hedged) 1.82% 31,871.813 10.50 9.88 11.30A (Mdis) USD 1.86% 81,057.146 8.16 8.14 9.38A (Ydis) EUR 1.87% 1,706,937.494 12.84 12.46 14.45I (acc) EUR 0.98% 2,635,866.620 16.68 15.21 16.71N (acc) EUR 2.62% 897,272.247 15.28 14.05 15.69N (acc) PLN-H1 (hedged) 2.61% 6,864,296.261 11.14 10.14 11.22Y (Mdis) EUR 0.07% 29,276.084 9.18 8.60 9.64

Franklin European Growth Fund – EURA (acc) EUR 1.83% 17,641,152.654 15.67 14.21 16.23A (acc) NOK-H1 (hedged) 1.83% 15,826,978.282 10.71 9.67 11.02A (acc) SGD-H1 (hedged) 1.83% 931,904.051 13.18 11.89 13.52A (acc) USD 1.83% 2,972,303.306 10.50 10.05 11.53A (acc) USD-H1 (hedged) 1.81% 5,855,800.582 11.17 10.08 11.52A (Ydis) GBP 1.83% 79,240.726 17.38 15.58 15.33I (acc) EUR 0.97% 6,679,880.156 30.98 27.98 31.69N (acc) EUR 2.58% 8,590,775.484 13.86 12.62 14.52N (acc) USD 2.58% 1,203,863.561 10.21 9.80 11.33W (acc) EUR 1.09% 145,066.067 11.58 10.46 11.86X (acc) EUR 0.25% 362.897 11.73 10.56 11.87

Franklin European Income Fund – EURA (acc) EUR 1.70% 191,936.965 11.12 10.72 10.94A (Mdis) EUR 1.70% 218,483.183 10.53 10.29 10.80A (Mdis) SGD-H1 (hedged) 1.70% 258,170.344 10.67 10.36 10.78A (Mdis) USD 1.70% 108,323.926 8.90 9.17 9.66I (acc) EUR 0.90% 82,661.984 11.31 10.86 10.99I (Mdis) EUR 0.90% 159,719.915 10.71 10.43 10.85N (acc) EUR 2.20% 259,255.164 11.00 10.63 10.90N (Mdis) EUR 2.20% 435,038.520 10.41 10.20 10.76N (Mdis) USD-H1 (hedged) 2.18% 36,104.761 9.25 9.01 9.46W (acc) EUR 1.10% 20,214.790 11.26 10.82 10.98W (Mdis) EUR 1.10% 19,696.345 10.67 10.39 10.84Z (acc) EUR 1.19% 19,706.750 11.24 10.80 10.97Z (Mdis) EUR 1.19% 19,696.662 10.64 10.38 10.83

Franklin European Small-Mid Cap Growth Fund – EURA (acc) EUR 1.83% 6,216,758.116 34.00 31.61 36.75A (acc) USD 1.83% 930,004.957 35.79 35.10 40.97I (acc) EUR 0.98% 5,458,190.350 40.79 37.77 43.53


Statistical Information (continued)



2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin European Small-Mid Cap Growth Fund – EUR (continued)I (acc) USD 0.98% 1,241,138.721 42.86 41.86 48.44I (acc) USD-H1 (hedged) 0.95% 25,310.941 9.94 9.14 -N (acc) EUR 2.58% 711,858.241 31.45 29.35 34.38W (acc) EUR 1.08% 979,770.324 14.44 13.37 15.43X (acc) EUR 0.25% 388.991 11.86 10.94 12.53Y (Mdis) EUR 0.06% 1,132,163.220 9.02 8.41 9.86

Franklin European Total Return Fund – EURA (acc) EUR 1.10% 5,045,013.242 15.18 15.03 14.38A (acc) NOK-H1 (hedged) 1.35% 298,628.230 11.78 11.61 10.98A (acc) SEK-H1 (hedged) 1.35% 227,997.438 11.35 11.24 10.82A (Mdis) EUR 1.10% 3,531,220.137 10.29 10.27 10.01A (Mdis) USD 1.10% 198,020.847 10.84 11.42 11.18I (acc) EUR 0.83% 8,024,988.547 14.87 14.70 14.03N (acc) EUR 1.80% 5,133,977.984 13.83 13.74 13.23N (acc) PLN-H1 (hedged) 1.80% 3,462,025.456 10.29 10.14 -N (Mdis) EUR 1.80% 5,437,154.503 11.52 11.54 11.33W (acc) EUR 0.85% 13,229.163 11.21 11.08 10.58

Franklin Flexible Alpha Bond Fund – USDA (acc) EUR 1.39% 62,567.809 10.84 10.21 -A (acc) EUR-H1 (hedged) 1.39% 81,204.683 10.02 10.01 -A (acc) USD 1.39% 90,000.000 10.11 10.04 -A (Qdis) EUR-H1 (hedged) 1.39% 58,713.226 10.01 10.01 -I (acc) EUR 0.75% 62,073.249 10.89 10.22 -I (acc) EUR-H1 (hedged) 0.75% 107,355.278 10.07 10.03 -I (acc) GBP-H1 (hedged) 0.75% 48,352.556 10.19 10.09 -I (acc) USD 0.75% 1,606,459.610 10.16 10.06 -I (Ydis) GBP-H1 (hedged) 0.75% 48,352.556 10.18 10.09 -I (Ydis) USD 0.75% 29,955,144.795 10.15 10.06 -N (acc) EUR 1.98% 40,424.157 10.79 10.19 -N (acc) EUR-H1 (hedged) 1.99% 23,174.309 9.95 10.00 -N (Qdis) EUR-H1 (hedged) 1.99% 62,073.249 9.97 10.00 -N (Qdis) USD 1.98% 35,000.000 10.07 10.03 -

Franklin GCC Bond Fund – USDA (acc) USD 1.42% 613,348.811 12.07 11.89 11.64A (Mdis) USD 1.42% 874,034.791 10.65 10.76 11.04B (acc) USD 2.90% 21,146.375 11.48 11.40 11.33B (Mdis) USD 2.89% 1,940.013 10.44 10.62 11.02I (acc) USD 0.84% 3,032,288.218 12.31 12.10 11.78W (Mdis) USD* 0.95% 500.000 9.88 - -

Franklin Global Aggregate Bond Fund – USDA (acc) EUR 1.25% 478,800.852 13.50 13.58 13.13A (acc) EUR-H1 (hedged) 1.25% 92,035.479 9.88 10.59 10.41A (acc) USD 1.25% 477,647.859 10.15 10.78 10.48A (Mdis) EUR 1.25% 369,008.078 12.55 12.66 12.27A (Mdis) USD 1.25% 89,942.866 9.49 10.10 9.83A (Qdis) GBP-H1 (hedged)Ω - - - 10.18 9.87A (Ydis) EUR-H1 (hedged)Ω - - - 9.90 9.83I (acc) CHF-H1 (hedged)Ω - - - 10.63 10.39I (acc) EUR 0.60% 109,649.729 14.04 14.08 13.52I (acc) EUR-H1 (hedged) 0.60% 2,317,767.407 9.97 10.64 10.36I (acc) USD 0.60% 2,775,026.876 10.62 11.23 10.83I (Qdis) EUR-H1 (hedged)Ω - - - 9.94 9.76I (Qdis) GBP-H1 (hedged)Ω - - - 10.20 9.89N (acc) EUR 1.95% 440,386.832 12.94 13.07 12.73N (acc) EUR-H1 (hedged) 1.95% 95,298.621 9.48 10.19 10.08N (acc) USD 1.95% 9,479.940 9.76 10.40 10.17W (acc) EUR 0.70% 56,200.000 12.33 12.38 11.91Z (Mdis) USD* 0.95% 500.000 9.35 - -

Franklin Global Aggregate Investment Grade Bond Fund – USDA (acc) USD 1.21% 126,309.347 10.00 10.68 10.35I (acc) USD 0.60% 1,118,888.385 10.30 10.97 10.56Z (acc) USD 0.94% 1,470.535 9.33 9.95 9.61

Franklin Global Convertible Securities Fund – USDA (acc) CHF-H1 (hedged) 1.61% 28,624.078 11.25 11.10 11.57A (acc) EUR 1.61% 573,595.921 15.07 13.97 14.31A (acc) EUR-H1 (hedged) 1.62% 305,376.424 11.47 11.30 11.70A (acc) HKD 1.58% 23,261.550 11.79 11.53 11.85A (acc) USD 1.60% 885,478.775 11.79 11.53 11.86A (Ydis) EUR 1.61% 327,008.617 14.68 13.65 14.04A (Ydis) EUR-H1 (hedged) 1.62% 179,169.869 11.19 11.06 11.50I (acc) EUR 0.89% 1,477,022.241 15.61 14.42 14.67I (acc) EUR-H1 (hedged) 0.86% 1,090,332.470 9.95 9.75 10.02I (acc) USD 0.89% 429.553 12.20 11.88 12.14N (acc) EUR 2.36% 866,270.575 14.54 13.53 13.97N (acc) USD 2.35% 537,149.310 11.37 11.16 11.56





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin Global Corporate High Yield Fund – USDΩ

I (acc) EUR - - - 12.42 12.60I (acc) EUR-H1 (hedged) - - - 10.39 10.66I (acc) GBP - - - 12.26 10.60I (acc) GBP-H1 (hedged) - - - 10.52 10.66I (acc) USD - - - 10.46 10.66I (Ydis) EUR - - - 11.28 12.11I (Ydis) EUR-H1 (hedged) - - - 9.37 10.21

Franklin Global Equity Strategies Fund – USDA (acc) EUR 2.23% 4,654,069.570 10.61 9.26 10.24A (acc) EUR-H1 (hedged) 2.26% 903,461.837 6.62 6.13 6.83A (acc) USD 2.24% 931,766.308 11.16 10.27 11.41A (Ydis) EUR 2.23% 659,758.930 10.51 9.19 10.18N (acc) EUR 2.92% 2,895,494.840 9.91 8.68 9.65W (acc) EURΩ - - - 10.69 11.68

Franklin Global Fundamental Strategies Fund – USDA (acc) EUR 1.85% 50,525,822.951 12.53 10.90 11.87A (acc) EUR-H1 (hedged) 1.86% 14,991,367.085 8.83 8.14 8.93A (acc) USD 1.85% 9,450,848.110 13.17 12.09 13.21A (Ydis) EUR 1.85% 64,099,729.671 11.33 9.98 10.95I (acc) EUR 0.99% 4,563,348.188 13.54 11.73 12.66N (acc) EUR 2.60% 1,441,497.308 13.04 11.39 12.49N (acc) EUR-H1 (hedged) 2.61% 6,987,190.924 7.88 7.30 8.07N (acc) PLN-H1 (hedged) 2.60% 3,404,128.366 15.23 13.95 15.24N (acc) USD 2.60% 938,091.279 10.50 9.68 10.66N (Ydis) EUR 2.60% 3,471,052.154 13.56 11.89 13.06

Franklin Global Government Bond Fund – USDΩ

A (acc) USD - - - 10.42 9.98A (Mdis) EUR - - - 12.07 11.61A (Mdis) USD - - - 10.16 9.82I (acc) EUR - - - 12.56 11.92I (acc) USD - - - 10.58 10.08N (acc) USD - - - 10.22 9.85N (Mdis) USD - - - 10.15 9.80

Franklin Global Growth Fund – USDA (acc) EUR 1.88% 161,038.413 16.82 15.45 16.45A (acc) USD 1.88% 1,722,431.750 13.93 13.49 14.42I (acc) EUR-H1 (hedged)Ω - - - 14.14 15.06I (acc) GBP 0.99% 1,485.371 15.94 14.20 12.77I (acc) USD 0.99% 2,818,243.364 12.30 11.86 12.57N (acc) EUR 2.62% 215,199.031 16.03 14.77 15.85N (acc) USD 2.63% 368,755.138 12.34 11.99 12.92W (acc) EURΩ - - - 13.17 13.91W (acc) USDΩ - - - 10.18 10.79Z (acc) USD 1.38% 13,179.536 13.09 12.65 13.45

Franklin Global Growth and Value Fund – USDA (acc) USD 1.89% 1,460,832.078 24.67 22.87 25.56B (acc) USD 3.19% 85,443.734 20.49 19.12 21.65C (acc) USD 2.46% 89,687.382 22.46 20.89 23.47N (acc) USD 2.63% 196,362.726 22.11 20.58 23.17

Franklin Global High Income Bond Fund – USDA (acc) EUR 1.55% 600,886.460 13.52 12.03 12.91A (acc) HKD 1.55% 2,027.575 11.63 10.92 11.74A (acc) USD 1.55% 215,288.802 11.62 10.90 11.75A (Mdis) HKD 1.60% 2,700.545 9.03 8.74 10.07A (Mdis) SGDΩ - - - 9.32 10.73A (Mdis) SGD-H1 (hedged) 1.57% 59,235.102 9.10 8.78 10.06A (Mdis) USD 1.56% 2,063,119.228 9.06 8.75 10.07I (acc) EUR 0.90% 127,022.091 13.93 12.35 13.17I (acc) USD 0.90% 50,375.683 11.97 11.19 11.98N (acc) EUR 2.15% 1,148,269.848 13.17 11.75 12.69N (Mdis) USD 2.20% 10,690.483 8.20 7.95 9.20W (acc) EURΩ - - - 10.57 11.29Y (Mdis) USD 0.07% 53,088.062 10.89 10.43 -

Franklin Global Listed Infrastructure Fund – USDA (acc) EUR 1.85% 547,557.338 14.16 13.96 13.47A (acc) USD 1.85% 571,314.113 11.44 11.90 11.52A (Mdis) SGD-H1 (hedged) 1.85% 93,158.794 10.35 10.92 10.84A (Qdis) USD 1.85% 85,473.935 10.36 10.95 10.90A (Ydis) EUR 1.85% 91,025.835 12.97 13.13 13.00I (acc) EUR 0.97% 355.114 14.61 14.34 13.72I (acc) GBP-H1 (hedged) 0.97% 15,714.610 11.83 12.30 11.77I (acc) USD 1.00% 3,463,735.889 11.79 12.21 11.73N (acc) EUR 2.60% 375,089.699 13.77 13.63 13.25W (acc) GBP 1.10% 2,018.184 14.77 14.13 11.53W (Qdis) GBP 1.10% 322.966 13.38 13.02 10.91Y (Mdis) USD 0.08% 39,810.060 10.17 10.64 -





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin Global Multi-Asset Income Fund – EURA (acc) EUR 1.69% 1,934,745.259 11.77 11.53 11.79A (acc) USD-H1 (hedged) 1.68% 394,199.225 9.95 9.70 9.87A (Mdis) EUR 1.69% 25,830.162 9.70 9.75 -A (Mdis) SGD-H1 (hedged) 1.67% 33,288.129 9.32 9.32 9.86A (Mdis) USD-H1 (hedged) 1.68% 351,820.968 9.29 9.29 9.87A (Qdis) EUR 1.69% 5,732,582.596 10.32 10.38 11.14A (Ydis) EUR 1.69% 682,084.587 10.51 10.80 11.37I (acc) EUR 0.89% 1,715,920.594 12.11 11.82 12.00I (Mdis) USD-H1 (hedged) 0.86% 28,071.055 9.40 9.35 9.87I (Qdis) EUR 0.86% 1,013,968.995 10.59 10.60 11.29I (Ydis) EUR 0.89% 5,279.831 9.52 9.74 9.88N (acc) EUR 2.19% 5,554,475.530 11.56 11.36 11.67N (acc) USD-H1 (hedged)* 2.17% 888,522.097 10.08 - -N (Mdis) USD-H1 (hedged) 2.19% 366,276.136 9.22 9.24 9.87N (Qdis) EUR 2.20% 1,407,698.901 9.18 9.25 9.87N (Ydis) EUR 2.20% 113,619.518 9.33 9.61 9.87W (Mdis) USD-H1 (hedged)* 0.99% 24,568.357 10.03 - -W (Ydis) EUR 1.03% 4,950.495 10.20 10.37 -Z (Mdis) USD-H1 (hedged) 1.18% 35,805.505 9.36 9.32 9.87

Franklin Global Real Estate Fund – USDA (acc) EUR-H1 (hedged) 1.87% 736,180.655 14.81 15.97 14.68A (acc) USD 1.86% 8,035,657.223 11.41 12.21 11.15A (Qdis) USD 1.86% 3,239,984.058 9.35 10.14 9.51A (Ydis) EUR-H1 (hedged) 1.87% 272,470.653 13.23 14.64 13.82B (Qdis) USD 3.17% 1,378,688.699 8.83 9.63 9.15C (Qdis) USD 2.44% 2,776,148.217 9.15 9.94 9.37I (acc) USD 0.98% 4,106,268.785 12.58 13.40 12.13N (acc) EUR-H1 (hedged) 2.62% 347,357.648 14.11 15.28 14.15N (acc) USD 2.61% 3,809,440.446 10.50 11.29 10.38W (Qdis) USD 1.10% 71,736.995 10.20 11.01 10.24Y (Mdis) USD 0.05% 26,447.656 9.60 10.31 -Z (acc) USD 1.36% 351,432.835 10.19 10.88 9.88

Franklin Global Small-Mid Cap Growth Fund – USDA (acc) USD 1.85% 4,137,817.614 29.34 28.17 30.98B (acc) USD 3.16% 70,925.069 24.14 23.32 25.99I (acc) USD 0.99% 1,790,454.774 16.38 15.66 17.07N (acc) USD 2.60% 604,855.844 26.05 25.10 27.81W (acc) USD 1.09% 20,573.963 9.64 9.22 10.07X (acc) USD 0.28% 500.000 10.02 9.54 10.33

Franklin Gold and Precious Metals Fund – USDA (acc) CHF-H1 (hedged) 1.87% 1,967,491.742 3.50 4.55 3.03A (acc) EUR 1.86% 5,678,177.840 5.75 6.95 4.48A (acc) EUR-H1 (hedged) 1.87% 2,592,893.049 4.15 5.38 3.57A (acc) HKD 1.86% 9,457,063.548 4.54 5.79 3.75A (acc) SGD 1.86% 3,539,052.686 4.80 5.70 3.69A (acc) USD 1.86% 19,298,492.307 4.54 5.80 3.75A (Ydis) EUR 1.87% 669,703.096 5.75 6.96 4.49A (Ydis) EUR-H1 (hedged)Ω - - - 5.39 3.58I (acc) USD 1.00% 305,949.333 4.82 6.12 3.93N (acc) EUR 2.61% 5,435,931.910 5.46 6.64 4.31N (acc) USD 2.61% 3,667,963.839 4.31 5.53 3.61

Franklin High Yield Fund – USDA (acc) USD 1.54% 7,188,523.054 16.99 15.68 16.63A (Mdis) AUD-H1 (hedged) 1.55% 1,674,633.442 9.24 8.74 9.83A (Mdis) SGD-H1 (hedged) 1.55% 2,643,069.620 7.80 7.42 8.40A (Mdis) USD 1.54% 308,577,317.517 6.15 5.85 6.66B (Mdis) USD 2.94% 50,913,890.180 6.05 5.80 6.69C (acc) USD 2.22% 1,580,494.409 21.81 20.19 21.57I (acc) EUR-H1 (hedged) 0.88% 1,713,277.038 12.27 11.34 12.03I (acc) USD 0.87% 1,609,382.082 17.71 16.29 17.17I (Mdis) USD 0.87% 7,178,985.490 9.76 9.26 10.47N (acc) USD 2.14% 3,561,318.153 17.64 16.33 17.42N (Mdis) USD 2.12% 3,783,965.142 8.51 8.12 9.30X (acc) USD 0.26% 500.000 10.65 9.77 10.23Y (Mdis) USD 0.05% 195,429.951 9.42 8.91 9.94Z (Mdis) USD 1.14% 937,505.969 9.13 8.67 9.83

Franklin Income Fund – USDA (acc) USD 1.67% 2,141,345.837 10.17 9.52 9.87A (Mdis) AUD-H1 (hedged) 1.68% 237,051.420 9.42 9.03 9.83A (Mdis) EUR-H1 (hedged) 1.68% 1,444,983.784 9.07 8.78 9.71A (Mdis) SGD-H1 (hedged) 1.69% 2,610,369.657 8.28 7.96 8.72A (Mdis) USD 1.68% 114,294,706.319 11.51 11.07 12.17B (Mdis) USD 2.99% 13,891,128.759 10.77 10.43 11.63C (acc) USD 2.26% 5,412,609.073 22.76 21.36 22.29C (Mdis) USD 2.26% 8,520,159.846 14.66 14.14 15.64I (acc) EUR 0.86% 520,430.924 11.64 10.28 10.54I (acc) USD 0.87% 2,922,203.164 19.92 18.56 19.10I (Ydis) EUR-H1 (hedged) 0.86% 29,396.581 9.32 9.27 10.04





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin Income Fund – USD (continued)N (acc) EUR-H1 (hedged) 2.18% 205,564.308 9.64 9.10 9.53N (acc) USD 2.18% 13,783,547.547 21.17 19.86 20.70N (Mdis) EUR 2.17% 465.095 10.60 9.69 -N (Mdis) EUR-H1 (hedged) 2.18% 3,680,752.482 8.99 8.72 9.70N (Mdis) USD 2.18% 917,752.997 8.92 8.60 9.52W (Mdis) USD* 0.96% 500.000 10.03 - -Z (acc) USD 1.18% 2,161,032.506 15.21 14.20 14.66Z (Mdis) USD 1.18% 8,541,676.384 10.49 10.06 11.01

Franklin India Fund – USDA (acc) EUR 1.88% 9,957,686.998 35.20 34.21 35.12A (acc) EUR-H1 (hedged) 1.88% 226,294.973 9.47 9.80 10.12A (acc) HKD 1.88% 298,060.974 14.06 14.42 14.85A (acc) SEK 1.88% 10,582,791.672 17.09 16.26 16.43A (acc) SGD 1.88% 1,621,125.437 12.06 11.50 11.85A (acc) USD 1.88% 26,221,571.778 30.62 31.40 32.36A (Ydis) EUR 1.89% 420,068.779 51.91 50.45 51.79A (Ydis) GBP 1.88% 193,635.281 44.33 41.99 36.73AS (acc) SGD 1.74% 250,997.210 10.08 9.61 -B (acc) USD 3.19% 1,226,458.645 26.51 27.36 28.57C (acc) USD 2.46% 325,079.052 28.68 29.49 30.57I (acc) EUR 1.03% 1,009,203.524 38.92 37.66 38.33I (acc) USD 1.03% 47,853,609.640 33.90 34.60 35.36I (Ydis) EUR 1.03% 1,302,957.718 38.24 37.08 37.74N (acc) EUR 2.63% 2,031,650.631 32.50 31.71 32.79N (acc) PLN-H1 (hedged) 2.66% 4,236,683.328 15.04 15.46 15.89N (acc) USD 2.63% 2,549,124.606 28.16 28.98 30.10S (acc) USD 0.88% 383,210.000 15.83 16.15 16.48W (acc) EUR 1.13% 341,544.619 19.10 18.49 18.84W (acc) GBP 1.13% 1,562,937.153 20.31 19.16 16.63W (acc) USD 1.14% 1,053,740.708 15.98 16.33 16.70X (acc) USD 0.31% 500.000 14.83 15.08 15.30Y (Mdis) USD 0.11% 500.000 11.23 11.48 -Z (acc) GBP 1.38% 9,952.210 20.06 18.97 16.51Z (acc) USD 1.38% 635,556.608 12.43 12.71 13.03

Franklin Japan Fund – JPYA (acc) EUR 1.86% 1,286,518.809 6.80 6.09 6.93A (acc) JPY 1.86% 2,907,459.713 837.56 699.80 946.60A (acc) USD 1.86% 6,153,607.199 7.17 6.78 7.74A (acc) USD-H1 (hedged) 1.84% 987,735.579 9.10 7.64 -C (acc) USD 2.44% 327,083.763 7.88 7.47 8.58I (acc) EUR 0.98% 3,024,756.882 10.68 9.53 10.74I (acc) USD 0.98% 15,979,579.599 9.30 8.76 9.91N (acc) EUR 2.61% 1,547,315.185 5.98 5.38 6.17N (acc) USD 2.61% 1,061,749.683 9.64 9.15 10.53W (acc) EUR 1.02% 1,075.119 14.46 12.92 14.59

Franklin K2 Alternative Strategies Fund – USDA (acc) CHF-H1 (hedged) 2.75% 26,984.403 9.74 9.56 9.90A (acc) CZK-H1 (hedged) 2.75% 1,268,103.744 97.82 95.79 98.71A (acc) EUR-H1 (hedged) 2.75% 8,959,179.734 10.45 10.23 10.56A (acc) NOK-H1 (hedged) 2.75% 213,602.683 10.28 9.99 10.18A (acc) SEK-H1 (hedged) 2.74% 4,963,250.186 10.02 9.80 10.14A (acc) SGD-H1 (hedged) 2.75% 483,794.784 10.73 10.43 10.56A (acc) USD 2.75% 19,680,622.734 10.57 10.27 10.50A (Ydis) EUR 2.75% 2,116,081.576 12.99 11.98 12.19A (Ydis) EUR-H1 (hedged) 2.75% 1,242,013.561 9.79 9.58 9.87A (Ydis) USD 2.75% 2,195,745.163 10.56 10.27 10.50I (acc) CHF-H1 (hedged) 1.90% 2,298,404.000 9.87 9.65 9.90I (acc) EUR-H1 (hedged) 1.90% 20,138,520.271 10.66 10.38 10.61I (acc) GBP-H1 (hedged) 1.90% 331,977.589 10.85 10.52 10.60I (acc) JPY 1.88% 658.471 1,173.86 1,003.98 1,207.02I (acc) JPY-H1 (hedged) 1.90% 28,033.904 1,059.76 1,029.75 1,060.31I (acc) USD 1.90% 4,697,081.575 10.77 10.43 10.57N (acc) EUR-H1 (hedged) 3.49% 9,914,569.243 10.27 10.10 10.49N (acc) HUF-H1 (hedged) 3.47% 958,333.371 100.26 97.53 98.94N (acc) PLN-H1 (hedged) 3.50% 3,152,600.349 10.06 9.76 9.94N (acc) USD 3.49% 12,298,177.585 10.39 10.14 10.44N (Ydis) EUR-H1 (hedged) 3.50% 24,809.459 9.99 9.81 -W (acc) EUR 2.05% 2,049,336.848 13.19 12.13 12.25W (acc) GBP-H1 (hedged) 2.05% 210,558.972 10.81 10.48 10.60W (acc) USD 2.05% 5,631,891.593 10.29 9.97 -Y (acc) CAD-H1 (hedged) 0.14% 712,862.669 10.47 10.04 9.96Y (Mdis) USD 0.14% 148,907.802 10.68 10.36 -Z (acc) GBP-H1 (hedged) 2.25% 33,359.748 10.78 10.46 10.58Z (acc) USD 2.25% 1,284,703.035 10.69 10.37 10.54

Franklin K2 Global Macro Opportunities Fund – USD*

A (acc) EUR-H1 (hedged) 2.75% 140,285.500 10.01 - -A (acc) SGD 2.75% 216,101.563 10.47 - -A (acc) USD 2.75% 156,250.000 10.00 - -A (Mdis) USD 2.75% 156,250.000 10.00 - -





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin K2 Global Macro Opportunities Fund – USD* (continued)A (Ydis) EUR 2.75% 140,285.500 10.58 - -A (Ydis) USD 2.75% 156,250.000 10.00 - -I (acc) EUR-H1 (hedged) 1.90% 140,285.500 10.02 - -I (acc) GBP-H1 (hedged) 1.90% 124,870.125 10.01 - -I (acc) JPY 1.90% 1,609,453.130 113.63 - -I (acc) JPY-H1 (hedged) 1.90% 1,609,453.130 100.37 - -I (acc) USD 1.90% 156,250.000 10.01 - -N (acc) EUR-H1 (hedged) 3.50% 140,285.500 10.00 - -N (acc) USD 3.50% 156,250.000 9.99 - -W (acc) EUR 2.05% 140,285.500 10.59 - -W (acc) GBP-H1 (hedged) 2.05% 124,870.125 10.00 - -Z (acc) USD 2.25% 156,250.000 10.01 - -

Franklin K2 Long Short Credit Fund – USD*

A (acc) EUR-H1 (hedged) 2.75% 337,600.224 10.11 - -A (acc) SGD 2.75% 511,614.000 10.32 - -A (acc) USD 2.75% 360,000.000 10.13 - -A (Mdis) USD 2.75% 360,000.000 10.13 - -A (Ydis) EUR 2.75% 337,600.224 10.26 - -A (Ydis) USD 2.75% 360,000.000 10.13 - -I (acc) EUR-H1 (hedged) 1.90% 534,284.224 10.12 - -I (acc) GBP-H1 (hedged) 1.90% 251,424.096 10.13 - -I (acc) USD 1.90% 361,980.198 10.13 - -N (acc) EUR-H1 (hedged) 3.50% 337,600.224 10.11 - -N (acc) USD 3.50% 360,000.000 10.12 - -W (acc) EUR-H1 (hedged) 2.05% 337,600.224 10.12 - -W (acc) GBP-H1 (hedged) 2.05% 282,852.108 10.13 - -Z (acc) USD 2.25% 360,000.000 10.13 - -

Franklin MENA Fund – USDA (acc) EUR 2.58% 3,026,829.117 5.25 4.75 6.24A (acc) EUR-H1 (hedged) 2.60% 922,763.852 3.30 3.17 4.21A (acc) USD 2.58% 6,629,036.979 5.57 5.32 7.01A (Ydis) USD 2.59% 56,665.695 5.91 5.67 7.54B (acc) USD 3.89% 673,970.646 4.97 4.77 6.38I (acc) EUR 1.46% 1,696,227.929 5.81 5.23 6.79I (acc) USD 1.48% 965,007.424 6.10 5.80 7.55I (Ydis) USDΩ - - - 5.97 7.96N (acc) EUR-H1 (hedged) 3.11% 1,858,407.802 3.17 3.04 4.07N (acc) USD 3.08% 1,411,109.557 5.33 5.10 6.76W (acc) EUR 1.51% 5,744.001 10.20 9.18 11.93W (Qdis) USD* 1.51% 500.000 10.36 - -X (acc) USD 0.30% 361.795 14.49 13.68 17.61

Franklin Natural Resources Fund – USDA (acc) CHF-H1 (hedged) 1.85% 71,034.832 5.90 5.44 6.30A (acc) EUR 1.84% 4,627,686.633 6.86 5.92 6.73A (acc) USD 1.84% 30,258,451.715 7.21 6.56 7.48A (Ydis) EUR-H1 (hedged) 1.85% 686,556.088 5.98 5.48 6.31A (Ydis) USD 1.84% 667,915.603 7.21 6.57 7.49B (acc) USD 3.16% 1,833,065.420 7.66 7.02 8.11C (acc) USD 2.42% 837,877.324 6.55 5.98 6.86I (acc) EUR 0.98% 1,362,657.118 7.47 6.42 7.23I (acc) USD 0.99% 1,542,913.441 7.84 7.11 8.04N (acc) EUR 2.59% 4,615,614.285 6.37 5.53 6.32N (acc) PLN-H1 (hedged) 2.62% 19,724,611.422 7.90 7.20 8.30

Franklin NextStep Balanced Growth Fund – USDA (acc) HKD 1.58% 172,632.023 10.86 10.75 -A (acc) SGD-H1 (hedged) 1.58% 284,221.469 10.90 10.78 -A (acc) USD 1.58% 7,221,132.489 10.91 10.80 -A (Mdis) HKD 1.58% 212,961.205 10.75 10.71 -A (Mdis) SGD-H1 (hedged) 1.58% 305,771.658 10.79 10.74 -A (Mdis) USD 1.58% 1,249,314.657 10.80 10.75 -

Franklin NextStep Conservative Fund – USDA (acc) PLN-H1 (hedged) 1.37% 4,661,497.878 10.62 10.58 -A (acc) USD 1.37% 137,760.548 10.57 10.58 -A (Mdis) USD 1.37% 72,018.853 10.44 10.54 -N (acc) USD 2.25% 121,815.270 10.49 10.55 -W (Mdis) EUR-H1 (hedged) 0.78% 129,071.701 9.93 10.06 -W (Mdis) GBP-H1 (hedged) 0.78% 140,187.131 10.53 10.60 -W (Mdis) USD 0.78% 198,369.340 10.01 10.07 -

Franklin NextStep Dynamic Growth Fund – USDA (acc) HKD 1.68% 339,636.299 11.04 10.86 -A (acc) SGD-H1 (hedged) 1.68% 102,961.747 11.07 10.89 -A (acc) USD 1.68% 1,522,218.208 11.09 10.91 -A (Mdis) HKD 1.68% 230,229.674 10.95 10.83 -A (Mdis) SGD-H1 (hedged) 1.68% 119,080.685 10.98 10.85 -A (Mdis) USD 1.68% 295,895.786 10.99 10.87 -





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin NextStep Growth Fund – USDA (acc) PLN-H1 (hedged) 1.73% 777,890.234 11.15 10.72 -A (acc) USD 1.73% 144,210.811 11.09 10.73 -A (Mdis) USD 1.73% 316,263.663 11.00 10.69 -N (acc) USD 2.53% 149,099.495 11.01 10.69 -W (Mdis) EUR-H1 (hedged) 0.89% 35,918.235 10.24 9.98 -W (Mdis) GBP-H1 (hedged) 0.89% 70,358.388 11.10 10.75 -W (Mdis) USD 0.89% 74,475.409 10.32 9.99 -

Franklin NextStep Moderate Fund – USDA (acc) PLN-H1 (hedged) 1.58% 4,760,379.544 11.05 10.71 -A (acc) USD 1.58% 191,947.238 10.99 10.70 -A (Mdis) USD 1.58% 299,735.671 10.88 10.66 -N (acc) USD 2.38% 297,069.673 10.90 10.67 -W (Mdis) EUR-H1 (hedged) 0.83% 132,413.232 10.20 10.02 -W (Mdis) GBP-H1 (hedged) 0.83% 184,192.207 10.99 10.73 -W (Mdis) USD 0.83% 380,877.314 10.27 10.03 -

Franklin NextStep Stable Growth Fund – USDA (acc) HKD 1.37% 558,444.751 10.43 10.55 -A (acc) SGD-H1 (hedged) 1.37% 131,642.323 10.48 10.57 -A (acc) USD 1.37% 912,611.845 10.48 10.59 -A (Mdis) HKD 1.37% 636,533.429 10.31 10.50 -A (Mdis) SGD-H1 (hedged) 1.37% 189,617.767 10.35 10.53 -A (Mdis) USD 1.37% 532,212.697 10.36 10.54 -

Franklin Real Return Fund – USDA (acc) USD 1.35% 342,041.283 10.28 10.32 10.36A (Ydis) EUR-H1 (hedged) 1.35% 170,589.820 9.76 9.86 10.00N (acc) USD 1.85% 406,396.773 9.52 9.58 9.66

Franklin Strategic Income Fund – USDA (acc) EUR 1.35% 5,812,550.526 14.12 13.10 13.15A (acc) EUR-H1 (hedged) 1.35% 1,906,048.897 11.50 11.32 11.50A (acc) USD 1.35% 12,883,591.578 14.83 14.52 14.62A (Mdis) AUD-H1 (hedged) 1.35% 60,279.130 9.87 9.82 10.24A (Mdis) EUR 1.35% 8,129,708.689 9.79 9.28 9.77A (Mdis) EUR-H1 (hedged) 1.35% 7,499,828.677 8.98 9.04 9.63A (Mdis) SGD-H1 (hedged) 1.35% 36,137.495 9.37 9.36 9.86A (Mdis) USD 1.35% 16,506,786.718 10.30 10.30 10.88B (Mdis) USD 2.88% 1,047,618.162 10.03 10.11 10.85C (Mdis) USD 1.95% 10,305,503.066 10.19 10.22 10.87I (acc) EUR-H1 (hedged) 0.82% 9,285,245.398 11.38 11.18 11.28I (acc) USD 0.83% 484,172.495 15.57 15.20 15.23I (Ydis) USD 0.81% 36,053.433 9.42 9.64 9.98N (acc) EUR-H1 (hedged) 2.09% 2,151,340.824 11.06 10.94 11.18N (acc) USD 2.08% 11,480,126.892 11.45 11.25 11.41N (Mdis) EUR-H1 (hedged) 2.09% 2,171,048.250 8.94 9.04 9.69W (Mdis) USD* 0.85% 500.000 10.08 - -Z (acc) USD 1.08% 1,528,268.081 13.17 12.88 12.93

Franklin Technology Fund – USDA (acc) EUR 1.83% 9,345,290.826 11.66 10.17 10.03A (acc) HKD 1.82% 34,836.408 15.98 14.70 14.55A (acc) USD 1.83% 43,191,191.580 12.25 11.26 11.15B (acc) USD 3.13% 1,082,440.951 9.84 9.11 9.14C (acc) USD 2.41% 1,037,234.741 24.02 22.15 22.06I (acc) EUR 0.97% 2,793,232.188 21.40 18.57 18.16I (acc) USD 0.94% 1,102,673.629 16.74 15.32 15.03N (acc) EUR 2.58% 3,550,160.882 9.93 8.69 8.64N (acc) USD 2.58% 6,695,865.529 10.44 9.64 9.61W (acc) EUR 1.06% 75,574.788 18.90 16.41 16.06W (acc) USD 1.05% 727,511.128 14.21 13.01 12.78X (acc) USD 0.25% 390.320 14.41 13.15 12.82Z (acc) USD 1.33% 736,579.502 17.55 16.10 15.86

Franklin U.S. Dollar Liquid Reserve Fund – USDA (acc) USD 0.25% 15,989,429.655 11.55 11.55 11.55A (Mdis) USD 0.25% 11,013,658.281 9.67 9.66 9.67B (Mdis) USD 1.32% 1,202,081.679 8.92 8.97 9.07C (acc) USD 1.24% 598,559.548 9.84 9.89 9.99N (acc) USD 1.15% 4,341,588.538 10.39 10.43 10.53

Franklin U.S. Equity Fund – USDA (acc) EUR 1.83% 438,304.400 23.00 19.54 22.66A (acc) EUR-H1 (hedged) 1.85% 352,043.365 16.91 15.23 17.79A (acc) HKD 1.84% 1,452,672.465 15.85 14.21 16.53A (acc) USD 1.83% 13,439,362.075 24.22 21.70 25.26B (acc) USD 3.14% 387,275.291 19.23 17.35 20.46C (acc) USD 2.41% 1,885,337.744 20.75 18.65 21.84I (acc) EUR 0.97% 43,831.193 17.83 15.08 17.33I (acc) EUR-H1 (hedged) 0.97% 240,368.955 12.18 10.91 12.63I (acc) USD 1.01% 433,768.968 20.23 18.06 20.85N (acc) EUR 2.58% 701,252.747 20.15 17.18 20.07N (acc) EUR-H1 (hedged) 2.57% 200,391.748 11.38 10.29 -





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin U.S. Equity Fund – USD (continued)N (acc) USD 2.58% 1,910,995.761 21.23 19.10 22.40W (acc) EUR 1.05% 15,589.414 16.11 13.63 15.68X (acc) USD 0.25% 500.000 12.36 10.99 12.60Y (Mdis) USD 0.05% 1,416,896.807 11.77 10.50 -Z (acc) USD 1.32% 812,698.693 9.51 8.50 9.84

Franklin U.S. Government Fund – USDA (Acc) EUR-H1 (hedged)* 1.23% 22,370.363 9.79 - -A (acc) HKD 1.27% 418,414.584 11.28 11.45 11.23A (acc) USD 1.27% 9,932,791.865 10.99 11.15 10.94A (Mdis) HKD 1.27% 531,537.034 9.77 10.00 9.96A (Mdis) USD 1.27% 51,004,647.656 9.21 9.42 9.39AX (acc) USD 1.47% 4,513,752.566 15.42 15.67 15.40B (acc) USD 2.52% 78,355.904 12.35 12.61 12.53B (Mdis) USD 2.53% 1,602,455.162 9.23 9.44 9.41C (acc) USD 2.05% 1,944,382.449 13.42 13.67 13.51I (acc) EUR-H1 (hedged) 0.60% 7,373,991.117 10.47 10.66 10.47I (acc) USD 0.60% 4,895,530.517 13.82 13.98 13.62I (Mdis) JPY-H1 (hedged) 0.60% 32,241.865 925.65 951.51 961.72I (Mdis) USD 0.60% 10,251,203.748 9.67 9.88 9.85N (acc) USD 1.97% 3,755,118.732 14.10 14.36 14.18N (Mdis) USD 1.97% 1,430,640.712 9.24 9.45 9.43W (acc) USD 0.81% 561,235.518 10.42 10.56 10.30W (Mdis) USD 0.80% 1,377,030.375 9.56 9.77 9.74X (acc) USD 0.26% 500.000 10.74 10.85 10.53Z (acc) USD 0.99% 239,636.234 11.62 11.79 11.53Z (Mdis) USD 0.99% 292,295.954 9.70 9.92 9.89

Franklin U.S. Low Duration Fund – USDA (acc) EUR 1.15% 147,878.969 11.43 10.71 10.65A (acc) EUR-H1 (hedged)* 1.15% 2,982,783.454 10.03 - -A (acc) USD 1.15% 9,179,945.638 10.71 10.59 10.57A (Mdis) USD 1.15% 43,496,665.029 9.88 9.81 9.88AX (acc) USD 1.35% 2,625,375.489 12.18 12.06 12.06B (Mdis) USD 2.41% 480,620.932 9.50 9.45 9.55C (Mdis) USD 2.04% 2,327,199.395 9.70 9.64 9.70I (acc) EUR-H1 (hedged) 0.68% 8,718,536.451 10.57 10.49 10.50I (acc) USD 0.68% 2,882,237.491 13.00 12.82 12.74N (Mdis) USD 1.85% 6,226,605.987 9.79 9.72 9.76W (Qdis) USD 0.72% 338,683.883 10.02 9.96 10.02Z (acc) USD 0.85% 352,938.144 10.15 10.02 9.97

Franklin U.S. Opportunities Fund – USDA (acc) CHF-H1 (hedged) 1.83% 252,691.868 17.31 16.67 18.54A (acc) EUR 1.82% 12,202,274.387 11.31 10.23 11.24A (acc) EUR-H1 (hedged) 1.83% 11,788,829.906 8.25 7.92 8.76A (acc) HKD 1.81% 6,343,996.444 16.03 15.31 16.87A (acc) NOK-H1 (hedged) 1.81% 1,967,965.293 11.83 11.28 12.37A (acc) RMB-H1 (hedged) 1.81% 32,149.827 110.61 104.27 111.16A (acc) SEK-H1 (hedged) 1.84% 1,285,901.842 16.43 15.77 17.51A (acc) SGD 1.82% 2,993,603.089 15.30 13.59 14.99A (acc) SGD-H1 (hedged) 1.83% 1,235,039.908 18.36 17.50 19.21A (acc) USD 1.82% 127,243,155.683 11.88 11.34 12.51A (Ydis) EUR 1.83% 2,312,925.511 11.51 10.42 11.45A (Ydis) GBP 1.82% 997,849.050 9.64 8.50 7.96AS (acc) SGD 1.71% 1,196,396.661 10.20 9.05 -B (acc) USD 3.13% 3,907,009.463 9.54 9.17 10.24C (acc) USD 2.40% 5,586,379.427 19.22 18.40 20.41I (acc) EUR 0.97% 4,846,912.855 28.64 25.81 28.11I (acc) EUR-H1 (hedged) 0.97% 749,775.531 20.63 19.72 21.60I (acc) USD 0.96% 9,597,967.168 30.14 28.64 31.32N (acc) EUR 2.57% 2,264,596.995 22.78 20.69 22.90N (acc) EUR-H1 (hedged) 2.59% 265,988.428 14.91 14.38 16.02N (acc) PLN-H1 (hedged) 2.58% 2,877,583.907 21.65 20.63 22.69N (acc) USD 2.57% 9,227,242.381 24.01 23.00 25.56W (acc) EUR 1.04% 175,258.650 15.89 14.32 15.60W (acc) USD 1.07% 10,039,874.914 16.50 15.69 17.17X (acc) USD 0.24% 500.000 11.98 11.35 12.32X (Ydis) USD 0.25% 1,008,039.797 16.58 15.72 17.10Y (Mdis) USD 0.06% 517.599 9.54 9.04 9.83Z (acc) USD 1.32% 1,586,672.449 20.44 19.46 21.36

Franklin U.S. Small-Mid Cap Growth Fund – USDA (acc) USD 1.85% 5,748,199.815 19.08 18.25 20.40B (acc) USD 3.16% 110,377.711 25.59 24.64 27.91C (acc) USD 2.43% 988,697.215 17.60 16.89 18.99I (acc) USD 1.03% 505,673.140 19.06 18.16 20.13N (acc) USD 2.60% 780,267.505 16.84 16.18 18.22

Franklin U.S. Total Return Fund – USDA (acc) EUR 1.20% 17,315.276 11.21 10.80 10.49A (acc) EUR-H1 (hedged) 1.20% 37,453.264 9.80 10.03 9.87A (acc) USD 1.20% 3,079,472.904 16.08 16.35 15.93





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Franklin U.S. Total Return Fund – USD (continued)A (Mdis) USD 1.20% 1,995,477.956 11.09 11.36 11.25C (Mdis) USD 1.98% 1,051,733.590 11.08 11.35 11.24I (acc) USD 0.83% 698,015.807 16.04 16.28 15.80I (Mdis) USD 0.81% 102,804.481 11.69 11.97 11.86N (Mdis) USD 1.90% 2,380,797.777 11.08 11.35 11.24Y (Mdis) USD 0.05% 1,772,711.062 10.13 10.38 -

Franklin World Perspectives Fund – USDA (acc) EUR 1.89% 2,485,882.856 25.22 22.28 24.66A (acc) USD 1.88% 2,048,165.552 19.45 18.12 20.14I (acc) EUR 0.98% 3,806,799.656 27.09 23.82 26.14I (acc) USD 0.98% 2,924,966.550 20.89 19.37 21.34N (acc) USD 2.64% 2,357,216.531 18.28 17.10 19.15W (acc) GBP 1.05% 3,524.773 18.96 16.25 15.21Z (acc) GBP 1.32% 8,361.557 18.75 16.09 15.09Z (acc) USD 1.27% 5,605.478 10.45 9.71 10.73

Franklin Mutual Beacon Fund – USDA (acc) EUR 1.82% 644,727.022 73.57 62.10 64.83A (acc) EUR-H1 (hedged) 1.84% 71,838.187 52.35 46.84 49.28A (acc) SGD 1.83% 355,624.820 13.37 11.08 11.61A (acc) USD 1.83% 4,707,736.417 77.32 68.85 72.17A (Ydis) USD 1.83% 185,599.422 73.32 65.69 69.13B (acc) USD 3.14% 72,531.306 34.46 30.89 32.81C (acc) USD 2.41% 2,014,698.492 21.76 19.43 20.49I (acc) EUR 0.98% 5,155,126.453 20.54 17.26 17.86I (acc) EUR-H1 (hedged) 1.00% 117,501.595 14.64 13.04 13.72I (acc) USD 0.97% 4,970,703.211 21.61 19.16 19.91N (acc) EUR 2.57% 1,042,087.967 36.09 30.58 32.16N (acc) EUR-H1 (hedged) 2.60% 177,440.072 25.94 23.30 24.70N (acc) USD 2.59% 1,678,048.365 38.02 33.98 35.89W (acc) USD* 0.99% 500.000 9.91 - -Z (acc) USD 1.33% 838,971.289 18.87 16.76 17.48

Franklin Mutual European Fund – EURA (acc) CZK-H1 (hedged) 1.82% 2,827,887.329 145.14 129.88 155.85A (acc) EUR 1.84% 25,115,848.255 23.77 21.22 25.28A (acc) RMB-H1 (hedged) 1.82% 29,976.023 114.62 100.67 116.74A (acc) SEK 1.84% 5,939,446.443 14.70 12.86 15.08A (acc) USD 1.84% 11,333,717.004 25.00 23.55 28.17A (acc) USD-H1 (hedged) 1.80% 6,066,452.581 10.42 9.27 11.07A (Ydis) EUR 1.84% 1,644,266.770 20.36 18.62 22.56A (Ydis) GBP 1.84% 100,299.886 17.53 15.59 16.08B (acc) USD 3.15% 502,389.598 20.17 19.13 23.18B (Ydis) EUR 3.14% 12,135.353 18.94 17.02 20.55C (acc) EUR 2.43% 10,335.943 21.36 19.13 22.92C (acc) USD 2.42% 788,840.710 22.48 21.24 25.55I (acc) EUR 0.97% 25,216,321.563 22.10 19.65 23.20I (Ydis) EUR 1.01% 9,912.000 17.80 16.36 19.79N (acc) EUR 2.58% 6,487,339.347 19.66 17.62 21.14N (acc) USD 2.58% 702,108.535 20.59 19.47 23.46N (acc) USD-H1 (hedged) 2.53% 1,542,728.226 10.60 9.46 11.37W (acc) EUR 1.05% 2,422,656.977 13.12 11.67 13.80W (Ydis) EUR 1.05% 138,841.669 10.90 10.01 12.12X (acc) EUR 0.25% 362.897 11.39 10.09 11.86Y (Mdis) EUR 0.06% 575,986.278 10.78 9.74 -Z (acc) EUR 1.34% 38,754.085 14.67 13.07 15.49Z (acc) USD 1.34% 996,950.611 12.72 11.95 14.23Z (acc) USD-H1 (hedged) 1.32% 262,475.642 10.88 9.65 11.46

Franklin Mutual Global Discovery Fund – USDA (acc) EUR 1.84% 9,900,713.725 20.61 17.61 19.50A (acc) EUR-H2 (hedged) 1.84% 1,818,909.335 13.37 11.83 12.91A (acc) USD 1.84% 13,096,894.936 17.93 16.16 17.96A (Ydis) EUR 1.84% 1,692,270.455 28.14 24.28 27.13A (Ydis) GBP 1.84% 85,667.768 24.24 20.38 19.41B (acc) USD 3.14% 216,349.200 15.51 14.07 15.85C (acc) USD 2.42% 2,163,921.419 16.79 15.18 16.97I (acc) EUR 0.98% 1,505,268.714 22.75 19.35 21.24I (acc) EUR-H2 (hedged) 0.98% 4,614,547.970 19.00 16.73 18.09I (acc) USD 0.98% 8,608,350.382 19.78 17.75 19.56N (acc) EUR 2.59% 3,337,353.261 18.91 16.22 18.10N (acc) EUR-H2 (hedged) 2.60% 1,993,929.318 12.73 11.30 12.43N (acc) USD 2.59% 1,714,269.859 16.48 14.91 16.70W (acc) EUR 1.08% 67,937.808 13.69 11.65 12.81Z (acc) USD 1.34% 604,203.991 15.52 13.96 15.44

Templeton Africa Fund – USDA (acc) CHF-H1 (hedged)Ω - - - 7.51 10.31A (acc) EUR 2.40% 1,278,900.928 9.22 9.18 12.38A (acc) EUR-H1 (hedged) 2.40% 911,924.168 7.19 7.60 10.40A (acc) GBP 2.40% 49,514.360 9.73 9.44 10.85A (acc) SGD 2.40% 29,764.313 8.63 8.43 11.41





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Templeton Africa Fund – USD (continued)A (acc) USD 2.40% 2,012,273.876 7.42 7.79 10.54A (Ydis) EUR 2.40% 305,920.442 8.68 8.78 12.00A (Ydis) EUR-H1 (hedged) 2.40% 119,168.408 6.77 7.27 10.08I (acc) EUR 1.40% 1,303,133.075 9.66 9.57 12.78I (acc) USD 1.40% 141,574.527 7.77 8.12 10.88N (acc) EUR-H1 (hedged) 2.90% 1,406,311.775 7.03 7.44 10.24W (acc) EUR 1.60% 84,968.535 7.87 7.80 10.44W (acc) GBP 1.60% 200,348.162 9.96 9.62 10.97

Templeton ASEAN Fund – USDA (acc) SGD 2.20% 219,661.822 9.16 8.97 9.51A (acc) USD 2.20% 228,319.268 8.21 8.64 9.16A (Ydis) USD 2.20% 150,291.197 8.13 8.60 9.16

Templeton Asian Bond Fund – USDA (acc) CHF-H1 (hedged) 1.43% 2,310,800.528 9.96 9.74 10.79A (acc) EUR 1.42% 3,699,102.362 19.62 18.04 19.64A (acc) EUR-H1 (hedged) 1.44% 3,320,778.143 11.97 11.68 12.87A (acc) USD 1.42% 12,557,664.243 17.07 16.56 18.09A (Mdis) AUD-H1 (hedged) 1.40% 87,027.406 8.67 8.59 9.73A (Mdis) EUR 1.42% 2,669,120.310 11.09 10.46 11.94A (Mdis) SGD 1.42% 297,351.113 9.46 8.76 10.04A (Mdis) SGD-H1 (hedged) 1.43% 399,734.122 8.41 8.35 9.53A (Mdis) USD 1.42% 7,245,364.322 11.65 11.59 13.28B (Mdis) USD 2.93% 393,108.027 11.35 11.38 13.24C (Mdis) USD 2.20% 1,231,724.701 11.48 11.47 13.25I (acc) CHF-H1 (hedged) 0.88% 1,548,647.581 10.36 10.10 11.12I (acc) EUR 0.87% 1,717,527.147 17.23 15.80 17.10I (acc) EUR-H1 (hedged) 0.88% 997,749.979 11.18 10.88 11.90I (acc) USD 0.88% 1,364,069.710 18.15 17.56 19.08I (Mdis) EUR 0.87% 253,216.062 11.63 10.94 12.42I (Ydis) EUR-H1 (hedged) 0.85% 27,533.951 8.70 8.91 9.86N (acc) EUR 2.12% 747,805.138 18.14 16.74 18.35N (acc) USD 2.12% 1,140,143.247 15.79 15.36 16.91N (Mdis) USD 2.12% 1,301,726.613 11.51 11.49 13.26S (acc) CHF-H1 (hedged) 0.74% 33,783.250 9.58 9.34 10.28S (acc) USD 0.74% 500.000 9.88 9.55 10.37W (acc) EUR-H1 (hedged) 1.00% 301,927.693 10.07 9.80 10.73W (Mdis) USD 1.00% 4,619,130.147 8.75 8.69 9.91X (Ydis) USD 0.30% 40,600.010 8.64 8.76 9.87Y (Mdis) USD 0.08% 1,465,923.906 9.92 9.80 -Z (acc) USD 1.12% 569,036.618 11.37 11.01 12.00

Templeton Asian Dividend Fund – USDA (acc) EUR 2.25% 22,704.675 10.65 10.33 12.16A (acc) USD 2.25% 74,292.065 8.60 8.79 10.39A (Mdis) SGD-H1 (hedged)Ω - - - 7.63 9.55A (Mdis) USD 2.25% 101,109.356 7.26 7.62 9.56A (Qdis) EUR 2.25% 68,745.324 9.07 9.02 11.24A (Ydis) EUR 2.25% 5,334.382 9.05 9.30 11.53I (acc) EURΩ - - - 10.65 12.42I (acc) USDΩ - - - 9.07 10.62N (acc) EUR 2.75% 95,920.665 10.45 10.16 12.02W (acc) GBP 1.40% 3,064.194 11.15 10.49 10.43W (Qdis) GBPΩ - - - 9.09 9.55Y (Mdis) USD 0.07% 500.000 10.03 10.34 -

Templeton Asian Growth Fund – USDA (acc) CHF-H1 (hedged) 2.24% 1,525,868.446 10.57 9.41 11.88A (acc) CZK-H1 (hedged) 2.24% 1,991,793.414 93.11 82.95 104.48A (acc) EUR 2.22% 13,981,972.836 28.95 24.25 30.07A (acc) EUR-H1 (hedged) 2.24% 5,118,744.053 20.51 18.22 22.82A (acc) HKD 2.22% 32,298,865.166 9.12 8.07 10.03A (acc) RMB-H1 (hedged) 2.23% 194,166.225 110.34 96.26 116.56A (acc) SGD 2.22% 8,114,644.070 8.39 6.90 8.58A (acc) SGD-H1 (hedged) 2.24% 326,736.541 10.50 9.27 11.54A (acc) USD 2.22% 49,240,811.458 30.52 26.97 33.57A (Ydis) EUR 2.22% 4,436,108.334 26.50 22.33 27.79A (Ydis) GBP 2.22% 437,240.635 22.64 18.59 19.72A (Ydis) USD 2.22% 51,213,545.609 27.87 24.77 30.96B (acc) USD 3.53% 1,841,964.135 12.65 11.26 14.20C (acc) USD 2.80% 1,604,047.235 25.69 22.77 28.51I (acc) CHF-H1 (hedged) 1.23% 140,582.840 9.14 8.10 10.12I (acc) EUR 1.21% 4,208,242.070 30.06 25.06 30.75I (acc) EUR-H1 (hedged) 1.26% 107,512.481 18.49 16.34 20.30I (acc) USD 1.22% 15,234,700.871 31.64 27.82 34.28I (Ydis) EUR-H2 (hedged) 1.23% 5,112,041.584 6.35 6.02 8.93N (acc) EUR 2.72% 1,887,019.356 39.32 33.03 41.15N (acc) EUR-H1 (hedged) 2.74% 1,075,071.822 27.77 24.73 31.17N (acc) HUF 2.72% 3,771,262.570 136.23 116.77 145.30N (acc) PLN-H1 (hedged) 2.74% 8,943,532.686 12.32 10.86 13.58N (acc) USD 2.72% 3,351,416.537 41.37 36.65 45.86W (acc) EUR 1.35% 1,339,696.008 11.04 9.21 11.32





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Templeton Asian Growth Fund – USD (continued)W (acc) GBP 1.35% 129,538.934 13.11 10.66 11.16W (acc) USD 1.35% 2,018,287.572 10.38 9.13 11.27W (Ydis) EUR 1.35% 15,675.834 11.62 9.83 12.24X (acc) USD 0.32% 500.000 10.00 8.75 10.69X (Ydis) USD 0.32% 7,030.236 8.87 7.95 9.96Y (Mdis) USD 0.10% 16,270.513 9.01 7.96 9.94Z (acc) GBP 1.72% 4,896.323 12.91 10.52 11.05Z (acc) USD 1.72% 450,995.844 11.90 10.49 12.99Z (Ydis) EUR-H1 (hedged) 1.74% 29,043.652 9.92 8.89 11.22Z (Ydis) USD 1.72% 125,513.242 8.74 7.78 9.73

Templeton Asian Smaller Companies Fund – USDA (acc) EUR 2.25% 4,358,892.889 48.72 45.81 49.78A (acc) SGD 2.24% 125,971.641 37.18 34.31 37.43A (acc) USD 2.24% 8,082,835.489 37.56 37.26 40.65A (Ydis) USD 2.24% 2,332,115.401 36.81 36.74 40.08B (acc) USD 3.55% 237,135.520 35.01 34.96 38.64I (acc) EUR 1.22% 3,017,365.839 53.04 49.62 53.37I (acc) USD 1.22% 6,900,568.121 40.91 40.38 43.60N (acc) EUR 2.74% 1,204,807.931 18.58 17.51 19.12N (acc) USD 2.74% 1,970,779.136 13.76 13.69 15.01W (acc) EUR 1.32% 259,363.524 14.77 13.83 14.88W (acc) USD 1.32% 612,108.241 11.33 11.19 12.09X (Ydis) USD 0.30% 841,592.230 10.63 10.72 11.67Y (Mdis) USD 0.10% 968,734.612 11.29 11.23 -

Templeton BRIC Fund – USDA (acc) EUR 2.49% 5,091,336.895 15.08 13.19 15.51A (acc) EUR-H1 (hedged) 2.52% 1,159,459.491 8.49 7.89 9.37A (acc) HKD 2.46% 57,875.083 7.14 6.58 7.76A (acc) USD 2.49% 42,178,862.438 13.12 12.10 14.28A (Ydis) GBPΩ - - - 15.83 15.98B (acc) USD 3.79% 394,809.278 11.37 10.55 12.62C (acc) USD 3.07% 709,903.239 12.28 11.36 13.49I (acc) USD 1.47% 64,969.113 14.79 13.57 15.87N (acc) EUR 2.98% 1,863,238.192 14.26 12.50 14.77N (acc) PLN-H1 (hedged)Ω - - - 7.07 8.33N (acc) USD 2.99% 933,299.262 12.40 11.47 13.61W (acc) GBPΩ - - - 10.54 10.47

Templeton China Fund – USDA (acc) HKD 2.44% 233,431.229 9.61 9.17 11.16A (acc) SGD 2.46% 1,184,179.349 7.57 6.72 8.18A (acc) USD 2.46% 19,387,604.888 21.23 20.25 24.66A (Ydis) EUR 2.46% 622,594.784 19.48 17.65 21.46A (Ydis) GBP 2.46% 62,952.111 16.53 14.57 15.11B (acc) USD 3.77% 1,895,355.560 9.09 8.73 10.77C (acc) USD 3.04% 489,835.298 14.88 14.24 17.44I (acc) USD 1.39% 852,097.320 25.99 24.67 29.71I (Ydis) GBP 1.44% 24,503.301 10.27 9.00 9.76N (acc) USD 2.96% 913,213.630 20.70 19.80 24.23W (acc) EUR 1.55% 149.853 11.61 10.45 12.56W (acc) GBP 1.55% 38,422.511 13.05 11.45 11.72W (acc) USD 1.55% 165,891.455 9.35 8.88 10.71W (Ydis) EUR 1.55% 13,898.485 10.99 10.00 12.20X (acc) HKD 0.28% 6,054,644.499 9.57 9.04 10.76X (acc) USD 0.29% 500.000 9.74 9.19 10.95Z (acc) USD 1.96% 623,290.028 8.73 8.31 10.07

Templeton Eastern Europe Fund – EURA (acc) EUR 2.56% 8,484,719.457 21.63 18.92 19.08A (acc) USD 2.56% 2,641,058.873 22.75 20.99 21.26A (Ydis) EUR 2.56% 46,836.619 21.39 18.71 18.87B (acc) USD 3.86% 665,630.709 4.99 4.64 4.76B (Ydis) EUR 3.87% 70,144.798 4.75 4.18 4.27C (acc) USD 3.14% 54,902.691 7.31 6.76 6.89I (acc) EUR 1.40% 1,969,229.032 16.00 13.92 13.87N (acc) EUR 3.06% 557,983.122 19.79 17.36 17.59W (acc) EUR 1.67% 149,645.258 10.03 8.74 8.73X (acc) EUR 0.30% 510,294.820 8.50 7.35 7.24

Templeton Emerging Markets Fund – USDA (acc) EUR-H1 (hedged) 2.48% 1,024,251.879 7.77 7.41 8.22A (acc) HKD 2.48% 105,083.616 9.17 8.68 9.56A (acc) SGD 2.48% 2,924,076.105 7.14 6.29 6.93A (acc) USD 2.48% 7,476,742.349 31.72 30.03 33.09A (Ydis) USD 2.48% 7,205,682.967 30.27 28.67 31.59B (acc) USD 3.79% 286,293.792 14.71 14.02 15.66C (acc) USD 3.06% 535,036.254 26.57 25.23 27.96I (acc) EUR-H1 (hedged) 1.47% 504,622.172 8.23 7.81 8.61I (acc) USD 1.39% 719,044.787 21.31 20.07 21.87N (acc) EUR 2.98% 842,360.661 16.03 14.43 15.91N (acc) USD 2.98% 1,638,009.362 16.85 16.00 17.72





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Templeton Emerging Markets Fund – USD (continued)W (acc) USD 1.63% 337,751.410 9.32 8.79 9.60Z (acc) USD 1.98% 616,562.998 8.78 8.29 9.09

Templeton Emerging Markets Balanced Fund – USDA (acc) EUR 2.11% 684,051.803 11.70 10.53 10.96A (acc) EUR-H1 (hedged) 2.11% 297,185.530 8.10 7.75 8.12A (acc) USD 2.11% 854,942.178 8.31 7.89 8.24A (Qdis) USD 2.11% 413,095.800 7.26 6.99 7.49A (Ydis) EUR 2.11% 616,304.177 10.25 9.44 10.10A (Ydis) EUR-H1 (hedged) 2.11% 296,832.627 7.04 6.89 7.46B (Mdis) USDΩ - - - 7.15 7.65C (acc) USD 2.87% 142,310.506 8.10 7.72 8.13I (acc) EUR 1.24% 422,160.735 12.27 11.00 11.34I (acc) EUR-H1 (hedged)Ω - - - 8.07 8.40I (acc) USDΩ - - - 8.21 8.50N (acc) EUR-H1 (hedged) 2.55% 628,109.119 7.89 7.56 7.96N (acc) USD 2.55% 411,120.465 8.10 7.71 8.09W (Qdis) GBPΩ - - - 9.68 8.81X (acc) USD 0.30% 38,642.493 9.18 8.64 8.86Z (acc) USD 1.79% 183,278.345 8.45 8.01 8.34Z (Qdis) GBPΩ - - - 9.68 8.81

Templeton Emerging Markets Bond Fund – USDA (acc) CHF-H1 (hedged) 1.90% 919,899.159 11.84 11.26 11.27A (acc) EUR-H1 (hedged) 1.90% 1,107,545.451 10.63 10.09 10.03A (acc) NOK-H1 (hedged) 1.90% 543,817.573 12.12 11.44 11.28A (acc) SEK-H1 (hedged) 1.91% 2,800,691.052 11.68 11.10 11.07A (acc) USD 1.89% 6,995,247.548 12.93 12.22 12.09A (Mdis) AUD-H1 (hedged) 1.90% 10,537,431.124 7.88 7.75 8.33A (Mdis) HKD 1.89% 804,722.063 8.08 7.98 8.68A (Mdis) SGD-H1 (hedged) 1.91% 1,126,133.496 7.39 7.30 7.92A (Mdis) USD 1.89% 126,755,251.741 8.89 8.78 9.55A (Qdis) EUR 1.89% 24,134,702.329 14.78 13.84 14.99A (Qdis) GBP 1.89% 771,915.738 10.88 9.93 9.15A (Qdis) USD 1.89% 50,554,622.543 15.45 15.27 16.59A (Ydis) EUR-H1 (hedged) 1.91% 10,617,346.210 7.82 8.18 8.82B (Mdis) USD 3.20% 21,139,345.813 8.70 8.65 9.54B (Qdis) USD 3.20% 6,530,774.218 13.71 13.64 15.00C (acc) USD 2.47% 756,628.900 26.86 25.45 25.34I (acc) CHF-H1 (hedged) 1.03% 2,644,945.501 10.90 10.32 10.23I (acc) EUR-H1 (hedged) 1.03% 8,311,042.379 12.59 11.91 11.73I (acc) USD 1.01% 29,129,292.759 25.05 23.56 23.12I (Qdis) GBP-H1 (hedged) 1.04% 4,813,781.913 8.23 8.10 8.68I (Qdis) USD 1.03% 5,807,855.458 12.25 12.06 13.00I (Ydis) EUR-H1 (hedged) 1.03% 1,966,186.000 7.90 8.22 8.84N (acc) USD 2.39% 2,629,758.148 32.58 30.86 30.70N (Mdis) USD 2.38% 1,074,708.352 8.12 8.04 8.79N (Qdis) PLN-H1 (hedged) 2.39% 2,253,808.078 9.25 9.15 9.85S (acc) USD 0.92% 500.000 10.61 9.98 9.79W (acc) EUR-H1 (hedged) 1.12% 302,848.456 9.89 9.36 9.23W (acc) USD 1.12% 519,416.873 10.13 9.54 9.37W (Qdis) EUR 1.12% 716,646.274 10.45 9.75 10.48W (Qdis) GBP 1.11% 2,096.342 9.82 8.93 8.19W (Qdis) GBP-H1 (hedged) 1.12% 1,912,333.566 8.54 8.41 9.03W (Qdis) USD 1.12% 732,614.276 7.55 7.43 8.02Y (Mdis) USD 0.11% 1,606,605.987 9.57 9.37 9.95Z (acc) USD 1.39% 398,335.985 13.15 12.39 12.21Z (Mdis) USD 1.39% 411,126.267 7.79 7.67 8.31Z (Qdis) GBP-H1 (hedged) 1.40% 21,520.862 8.48 8.37 9.01

Templeton Emerging Markets Smaller Companies Fund – USDA (acc) EUR 2.51% 6,185,617.399 13.29 12.30 13.52A (acc) USD 2.50% 14,088,459.453 9.78 9.55 10.55A (Ydis) GBP 2.50% 362,572.187 15.54 14.03 13.16A (Ydis) USD 2.50% 1,044,591.065 9.36 9.17 10.13C (acc) USD 3.08% 635,294.213 10.31 10.09 11.21I (acc) EUR 1.45% 2,608,258.106 14.67 13.50 14.69I (acc) USD 1.44% 15,399,788.126 10.80 10.49 11.46N (acc) USD 3.00% 3,388,140.029 9.35 9.15 10.15W (acc) GBP 1.66% 888,694.586 17.96 16.13 14.99W (acc) USD 1.65% 1,317,861.439 11.58 11.25 12.32Y (Mdis) USD 0.12% 1,260,036.646 9.18 8.96 9.93

Templeton Euroland Fund – EURA (acc) EUR 1.85% 9,906,926.460 22.15 18.53 20.32A (Ydis) EUR 1.85% 1,166,684.285 18.57 15.72 17.74B (acc) USD 3.15% 319,291.624 9.17 8.14 9.09B (Ydis) EUR 3.15% 40,100.110 8.31 7.00 7.92I (acc) EUR 0.98% 2,634,739.512 20.74 17.27 18.78N (acc) EUR 2.59% 2,230,196.308 12.96 10.88 12.02X (acc) EUR 0.27% 221,727.000 13.59 11.28 12.18





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Templeton European Fund – EURA (acc) EUR 1.84% 2,224,607.051 22.41 18.98 22.18A (acc) SGD 1.84% 2,411,604.336 8.22 6.83 8.02A (acc) USD 1.84% 1,633,209.514 23.54 21.04 24.69A (Ydis) USD 1.84% 5,322,905.406 19.39 17.59 20.82I (acc) EUR 0.98% 779,414.636 19.66 16.58 19.21N (acc) EUR 2.59% 428,944.965 20.14 17.13 20.16W (acc) EUR 1.02% 1,242.295 11.13 9.38 10.87Z (acc) EUR 1.31% 929.657 11.05 9.33 10.85

Templeton Frontier Markets Fund – USDA (acc) EUR 2.58% 6,718,072.708 22.27 19.71 22.15A (acc) EUR-H1 (hedged) 2.60% 2,114,199.614 10.22 9.60 10.92A (acc) SGD 2.58% 176,118.575 17.01 14.77 16.67A (acc) USD 2.58% 7,594,836.636 17.17 16.03 18.09A (Ydis) GBP 2.58% 229,942.118 22.33 19.62 18.96A (Ydis) USD 2.58% 1,046,512.859 15.74 14.98 17.06B (acc) USD 3.88% 9,884.209 14.60 13.72 15.68C (acc) USD 3.16% 86,709.397 15.48 14.50 16.46I (acc) EUR 1.50% 8,596,260.578 24.33 21.41 23.81I (acc) USD 1.51% 3,512,031.865 18.76 17.42 19.45I (Ydis) GBP 1.51% 2,049,778.380 22.61 20.00 19.36N (acc) EUR 3.08% 1,540,892.653 21.38 18.96 21.42N (acc) EUR-H1 (hedged) 3.10% 3,127,790.894 15.41 14.51 16.61N (acc) PLN-H1 (hedged) 3.10% 2,515,873.237 11.44 10.65 11.97W (acc) EUR 1.71% 608,995.321 12.33 10.86 12.11W (acc) GBP 1.73% 481,985.987 15.38 13.21 12.55W (acc) USD 1.73% 1,107,943.916 12.63 11.74 13.13X (acc) USD 0.30% 500.000 12.37 11.42 12.60Z (acc) GBP 2.08% 16,147.024 15.14 13.02 12.41Z (Ydis) EUR-H1 (hedged) 2.10% 138,103.810 9.47 9.10 10.45

Templeton Global Fund – USDA (acc) HKD 1.84% 957,968.698 15.12 13.56 15.97A (acc) SGD 1.83% 3,428,354.526 10.13 8.44 9.96A (acc) USD 1.83% 5,700,234.138 37.23 33.35 39.33A (Ydis) USD 1.84% 19,028,548.658 33.23 29.97 35.47AS (acc) SGD 1.72% 3,149,027.315 10.43 8.68 -B (acc) USD 3.14% 403,305.697 21.75 19.61 23.43C (acc) USD 2.41% 441,320.397 21.10 18.95 22.48I (acc) USD 0.98% 9,804,621.587 21.65 19.31 22.58N (acc) USD 2.58% 970,259.693 23.82 21.42 25.44W (Ydis) USD 1.08% 49,533.430 10.57 9.58 11.34X (Ydis) USD 0.26% 1,275,634.135 9.21 8.38 9.92Z (acc) USD 1.33% 102,080.343 9.89 8.84 10.37

Templeton Global (Euro) Fund – EURA (acc) EUR 1.84% 1,828,444.218 21.35 18.25 21.73A (Ydis) EUR 1.84% 33,352,613.794 19.29 16.62 19.86B (acc) USD 3.14% 5,727.654 9.98 9.06 10.97I (acc) EUR 0.98% 322,300.436 20.99 17.86 21.09I (acc) EUR-H2 (hedged) 0.96% 259,519.909 19.05 16.57 18.83N (acc) EUR 2.59% 388,350.710 17.44 14.96 17.95W (acc) EUR 1.08% 23,518.139 13.15 11.20 13.23Z (acc) EUR 1.33% 10,260.236 12.03 10.26 12.16

Templeton Global Balanced Fund – USDA (acc) EUR 1.64% 2,583,883.337 25.59 22.72 25.17A (acc) EUR-H1 (hedged) 1.65% 594,818.794 18.06 17.01 19.04A (acc) SGD 1.64% 2,100,466.728 11.08 9.66 10.74A (acc) USD 1.64% 7,309,465.599 26.92 25.22 28.05A (Qdis) USD 1.64% 10,797,833.658 21.37 20.42 23.09AS (acc) SGD 1.52% 30,191,422.413 10.49 9.13 -B (acc) USD 2.95% 1,224,097.697 16.75 15.79 17.79C (Qdis) USD 2.22% 2,018,779.584 12.45 11.93 13.52I (Ydis) USD 0.87% 2,543,476.991 11.94 11.46 12.83N (acc) EUR 2.14% 3,221,617.272 17.96 15.99 17.80N (acc) EUR-H1 (hedged) 2.15% 1,044,397.637 9.36 8.83 9.94W (acc) GBP-H1 (hedged) 0.98% 37,456.850 9.36 8.73 9.65W (acc) USD 0.98% 654,478.950 9.95 9.29 10.26X (Ydis) USD 0.25% 16,970.084 9.17 8.77 9.81Z (acc) USD 1.14% 429,288.357 9.30 8.69 9.62

Templeton Global Bond Fund – USDA (acc) CHF-H1 (hedged) 1.42% 8,141,155.291 12.47 11.74 12.78A (acc) CZK-H1 (hedged) 1.43% 19,901,670.516 109.42 103.03 111.83A (acc) EUR 1.41% 55,516,016.731 27.23 24.15 25.94A (acc) EUR-H1 (hedged) 1.42% 60,884,684.313 20.62 19.36 20.94A (acc) HKD 1.42% 1,120,475.899 12.69 11.87 12.79A (acc) NOK-H1 (hedged) 1.42% 2,611,469.515 13.55 12.65 13.54A (acc) SEK-H1 (hedged) 1.43% 18,950,092.213 12.88 12.11 13.13A (acc) USD 1.41% 76,762,381.621 28.65 26.81 28.91A (Mdis) AUD-H1 (hedged) 1.42% 2,826,675.404 11.08 10.59 11.80A (Mdis) CAD-H1 (hedged) 1.42% 1,023,521.185 10.06 9.69 10.94





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Templeton Global Bond Fund – USD (continued)A (Mdis) EUR 1.41% 28,393,960.244 17.98 16.40 18.47A (Mdis) EUR-H1 (hedged) 1.43% 37,809,982.040 12.11 11.71 13.28A (Mdis) GBP 1.41% 2,514,487.653 15.38 13.67 13.12A (Mdis) GBP-H1 (hedged) 1.43% 4,381,684.781 9.79 9.41 10.59A (Mdis) HKD 1.41% 19,035,325.040 10.25 9.87 11.14A (Mdis) RMB-H1 (hedged) 1.42% 144,144.478 105.78 100.45 109.58A (Mdis) SGD 1.41% 7,993,046.550 11.85 10.61 11.99A (Mdis) SGD-H1 (hedged) 1.43% 20,170,925.477 11.75 11.28 12.68A (Mdis) USD 1.41% 183,956,256.322 18.90 18.19 20.56A (Ydis) CHF-H1 (hedged) 1.42% 1,563,029.166 9.88 9.78 10.89A (Ydis) EUR 1.41% 44,694,989.418 18.47 17.21 18.92A (Ydis) EUR-H1 (hedged) 1.42% 83,710,329.332 9.77 9.63 10.69AX (acc) USD 1.61% 13,826,694.023 21.58 20.20 21.83B (Mdis) USD 2.92% 5,018,893.818 19.22 18.64 21.38C (Mdis) USD 2.19% 29,275,099.283 14.32 13.83 15.76I (acc) CHF-H1 (hedged) 0.87% 17,181,226.060 12.17 11.42 12.37I (acc) EUR 0.86% 9,684,025.773 22.63 20.01 21.38I (acc) EUR-H1 (hedged) 0.87% 15,922,679.021 17.39 16.28 17.51I (acc) NOK-H1 (hedged) 0.86% 183,649,760.109 10.38 9.67 10.30I (acc) USD 0.87% 42,213,181.602 23.96 22.36 23.98I (Mdis) EUR 0.87% 1,851,370.078 15.17 13.80 15.45I (Mdis) GBP 0.87% 6,494,117.318 14.48 12.84 12.24I (Mdis) GBP-H1 (hedged) 0.86% 16,104,036.667 10.86 10.40 11.62I (Mdis) JPY 0.85% 5,582,226.320 1,344.03 1,139.40 1,517.55I (Mdis) JPY-H1 (hedged) 0.85% 6,041,240.779 964.43 922.12 1,044.06I (Ydis) EUR 0.87% 1,135,293.219 16.30 15.14 16.64I (Ydis) EUR-H1 (hedged) 0.88% 14,170,231.936 9.95 9.78 10.85N (acc) EUR 2.11% 11,948,389.167 26.28 23.39 25.30N (acc) EUR-H1 (hedged) 2.14% 24,501,756.844 19.95 18.81 20.52N (acc) HUF 2.11% 13,294,716.817 154.71 140.51 151.78N (acc) PLN-H1 (hedged) 2.14% 13,088,251.511 14.09 13.12 14.07N (acc) USD 2.11% 20,098,230.704 27.65 25.96 28.19N (Mdis) EUR-H1 (hedged) 2.13% 41,543,453.585 13.98 13.56 15.47N (Mdis) USD 2.11% 6,580,716.711 10.01 9.67 11.00N (Ydis) EUR-H1 (hedged) 2.14% 11,715,340.414 9.73 9.64 10.69S (acc) USD 0.74% 199,274.000 10.39 9.68 10.37S (Mdis) EUR 0.74% 422.244 10.33 9.41 10.50W (acc) CHF-H1 (hedged) 0.98% 562,845.694 9.87 9.26 10.04W (acc) EUR 1.01% 3,828,292.772 12.66 11.21 11.99W (acc) EUR-H1 (hedged) 1.02% 2,286,446.810 11.36 10.64 11.46W (acc) USD 1.01% 4,932,474.465 11.47 10.71 11.50W (Mdis) EUR 1.01% 670,865.617 11.78 10.73 12.03W (Mdis) GBP 1.01% 3,941,911.230 12.69 11.26 10.75W (Mdis) GBP-H1 (hedged) 1.03% 5,307,845.161 10.25 9.82 10.99W (Mdis) USD 1.02% 2,189,903.164 8.93 8.58 9.65W (Ydis) EUR 1.01% 1,548,660.686 12.05 11.20 12.31W (Ydis) EUR-H1 (hedged) 1.02% 735,199.704 9.00 8.86 9.84X (acc) EUR 0.31% 20,331,805.158 13.55 11.94 12.72X (acc) EUR-H1 (hedged) 0.30% 22,164.347 10.75 10.05 -X (acc) USD 0.30% 4,725,410.481 10.09 9.38 10.01Y (acc) CAD 0.08% 1,536,507.386 10.91 9.76 10.04Y (Mdis) USD 0.08% 500.000 10.79 10.29 -Z (acc) EUR 1.12% 233,786.605 15.58 13.80 14.78Z (acc) USD 1.11% 9,535,246.471 12.72 11.88 12.78Z (Mdis) GBP-H1 (hedged) 1.12% 208,266.040 10.26 9.83 11.00Z (Mdis) USD 1.12% 6,661,193.925 9.62 9.24 10.41Z (Ydis) EUR-H1 (hedged) 1.13% 271,891.706 9.85 9.70 10.75

Templeton Global Bond (Euro) Fund – EURA (acc) EUR 1.41% 8,895,934.795 15.85 15.65 15.11A (acc) USD 1.42% 157,968.334 9.45 9.85 9.54A (Ydis) EUR 1.42% 7,170,751.713 10.23 10.32 10.30I (acc) EUR 0.86% 1,902,268.106 16.30 16.05 15.41N (acc) EUR 2.12% 5,452,710.879 14.44 14.31 13.91N (Ydis) EUR 2.10% 466.201 9.90 9.94 -W (acc) EUR 1.00% 104,384.489 10.85 10.69 10.28

Templeton Global Currency Fund – USD*

A (acc) EUR 1.35% 62,565.712 10.79 - -A (acc) EUR-H1 (hedged) 1.35% 62,508.369 10.13 - -A (acc) USD 1.35% 100,000.000 10.14 - -I (acc) EUR 0.81% 62,508.369 10.81 - -I (acc) EUR-H1 (hedged) 0.81% 62,508.369 10.14 - -I (acc) USD 0.81% 70,000.000 10.15 - -N (acc) EUR 2.05% 62,508.369 10.78 - -N (acc) EUR-H1 (hedged) 2.05% 62,508.369 10.11 - -N (acc) USD 2.05% 70,000.000 10.12 - -W (acc) EUR 0.95% 62,508.369 10.80 - -W (acc) EUR-H1 (hedged) 0.95% 62,923.739 10.14 - -





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Templeton Global Equity Income Fund – USDA (acc) EUR 1.60% 159,220.060 15.21 12.96 15.37A (acc) USD 1.60% 1,986,925.637 12.72 11.44 13.62A (Mdis) RMB-H1 (hedged) 1.80% 37,958.359 93.34 85.04 102.01A (Mdis) SGD 1.86% 6,910,986.059 6.24 5.36 6.67A (Mdis) USD 1.60% 8,232,271.297 8.93 8.23 10.21AS (Mdis) SGD 1.75% 2,221,208.641 9.81 8.42 -B (Qdis) USD 2.90% 1,157,371.104 8.51 7.91 9.95I (Ydis) USDΩ - - - 8.21 10.07N (Mdis) USD 2.57% 22,942.704 8.31 7.69 9.64Y (Mdis) USD 0.07% 500.000 10.68 9.77 -Z (Qdis) USD 1.10% 45,315.086 9.86 9.08 -

Templeton Global High Yield Fund – USDA (acc) EUR 1.71% 1,235,824.549 14.01 12.61 12.53A (acc) USD 1.71% 723,419.309 14.74 13.99 13.95A (Mdis) EUR 1.71% 9,525,067.520 8.28 7.70 8.22A (Mdis) USD 1.71% 1,464,836.603 8.70 8.53 9.15I (acc) EUR 0.90% 767,704.557 15.03 13.46 13.27N (acc) EUR 2.21% 2,655,926.360 13.35 12.04 12.02

Templeton Global Income Fund – USDA (acc) EUR 1.70% 12,228,660.360 22.12 19.25 21.50A (acc) EUR-H1 (hedged) 1.66% 1,189,102.493 10.01 9.23 10.40A (acc) HKD 1.70% 446,827.210 13.22 12.15 13.60A (acc) USD 1.70% 12,905,919.911 18.50 16.99 19.04A (Mdis) SGD-H1 (hedged) 1.66% 30,728.804 9.23 8.63 10.02A (Qdis) EUR-H1 (hedged) 1.66% 630,865.175 9.25 8.76 10.20A (Qdis) HKD 1.70% 3,465,469.743 11.35 10.69 12.40A (Qdis) USD 1.70% 11,170,712.936 13.14 12.38 14.37B (Qdis) USD 3.00% 1,955,336.822 12.79 12.13 14.27C (Qdis) USD 2.27% 5,698,993.811 12.97 12.25 14.30I (acc) EUR-H1 (hedged) 0.88% 1,418,122.761 10.24 9.42 10.52I (acc) USD 0.89% 6,847,616.168 20.02 18.30 20.35N (acc) EUR-H1 (hedged) 2.20% 230,390.829 9.66 8.94 10.12N (acc) USD 2.19% 12,605,391.790 17.47 16.08 18.11N (Qdis) EUR-H1 (hedged) 2.20% 2,130,933.841 9.16 8.69 10.18S (acc) USD 0.77% 500.000 10.27 9.39 10.43Z (acc) USD 1.05% 987,948.462 14.71 13.46 14.99

Templeton Global Smaller Companies Fund – USDA (acc) USD 1.86% 1,201,962.983 36.70 33.59 37.04A (Ydis) USD 1.86% 1,942,090.776 34.64 31.71 34.96B (acc) USD 3.17% 116,862.412 9.48 8.74 9.76C (acc) EUR 2.41% 1,108.982 13.46 11.71 12.93I (acc) USD 1.03% 61,400.048 16.87 15.38 16.82N (acc) USD 2.61% 151,506.401 24.11 22.16 24.61

Templeton Global Total Return Fund – USDA (acc) CHF-H1 (hedged) 1.44% 9,473,387.551 14.18 13.17 14.29A (acc) EUR 1.43% 32,370,390.002 27.78 24.33 26.04A (acc) EUR-H1 (hedged) 1.45% 52,572,857.612 20.89 19.38 20.88A (acc) HKD 1.43% 7,281,135.042 14.04 12.98 13.93A (acc) NOK-H1 (hedged) 1.44% 2,001,088.668 10.57 9.75 10.42A (acc) PLN-H1 (hedged) 1.45% 4,728,770.435 87.34 79.98 84.93A (acc) SEK-H1 (hedged) 1.45% 28,427,684.835 12.63 11.71 12.69A (acc) USD 1.43% 98,494,957.571 29.25 27.03 29.04A (Mdis) AUD-H1 (hedged) 1.43% 8,127,442.346 10.91 10.38 11.71A (Mdis) EUR 1.43% 31,928,105.605 15.05 13.65 15.54A (Mdis) EUR-H1 (hedged) 1.44% 61,070,082.151 10.10 9.70 11.11A (Mdis) GBP 1.43% 1,991,956.861 12.86 11.37 11.04A (Mdis) GBP-H1 (hedged) 1.45% 9,229,802.276 7.87 7.52 8.56A (Mdis) HKD 1.43% 147,595,111.326 10.33 9.89 11.29A (Mdis) RMB-H1 (hedged) 1.44% 503,119.116 103.58 97.77 107.90A (Mdis) SGD 1.43% 6,905,324.391 11.61 10.33 11.81A (Mdis) SGD-H1 (hedged) 1.44% 30,808,736.930 10.41 9.95 11.33A (Mdis) USD 1.43% 123,039,871.532 15.78 15.10 17.26A (Ydis) CHF-H1 (hedged) 1.44% 1,485,448.384 9.72 9.65 10.88A (Ydis) EUR 1.43% 34,183,233.030 15.50 14.49 16.12A (Ydis) EUR-H1 (hedged) 1.44% 38,586,415.207 9.86 9.77 10.97B (acc) USD 2.94% 943,512.421 24.03 22.37 24.40B (Mdis) USD 2.94% 5,168,844.267 15.35 14.80 17.18C (Mdis) USD 2.21% 18,997,718.532 13.87 13.32 15.35I (acc) CHF-H1 (hedged) 0.88% 2,263,053.654 12.71 11.79 12.72I (acc) EUR 0.88% 7,257,578.111 26.57 23.20 24.70I (acc) EUR-H1 (hedged) 0.89% 15,635,945.389 19.30 17.86 19.15I (acc) NOK-H1 (hedged) 0.86% 2,740,204.028 10.46 9.61 10.19I (acc) USD 0.88% 28,142,472.017 27.93 25.73 27.50I (acc) USD-H4 (BRL) (hedged) 0.84% 992,755.739 9.21 8.18 8.11I (Mdis) EUR 0.89% 704,581.509 14.87 13.44 15.21I (Mdis) GBP 0.89% 195,920.761 15.10 13.31 12.84I (Mdis) GBP-H1 (hedged) 0.89% 10,867,454.064 11.24 10.74 12.12I (Mdis) JPY 0.85% 286,159,589.597 1,328.98 1,119.78 1,508.79I (Mdis) JPY-H1 (hedged) 0.85% 11,836,802.272 910.14 865.47 992.53





2016(See Note 25)

SharesOutstanding

December 31,2016


December 31,2016

June 30,2016

June 30,2015

Templeton Global Total Return Fund – USD (continued)I (Ydis) EUR 0.88% 2,875,749.771 15.61 14.56 16.22I (Ydis) EUR-H1 (hedged) 0.89% 17,430,579.902 9.99 9.88 11.10N (acc) EUR 2.13% 18,566,464.742 25.30 22.24 23.97N (acc) EUR-H1 (hedged) 2.14% 34,819,242.387 18.93 17.62 19.11N (acc) HUF 2.13% 13,844,030.411 167.88 150.59 162.08N (acc) USD 2.13% 25,738,802.656 26.65 24.71 26.73N (Mdis) EUR-H1 (hedged) 2.14% 72,228,781.912 11.83 11.41 13.18N (Mdis) USD 2.13% 830,022.003 8.21 7.88 9.08N (Ydis) EUR-H1 (hedged) 2.16% 12,765,309.683 9.78 9.73 10.94S (acc) EUR-H1 (hedged) 0.74% 56,021.000 10.43 9.63 10.31S (acc) USD 0.73% 64,509.000 10.50 9.67 10.31S (Ydis) USD 0.74% 2,659,000.000 8.91 8.76 9.77W (acc) CHF-H1 (hedged) 0.98% 2,687,958.742 9.88 9.17 9.89W (acc) EUR 1.00% 3,040,056.882 13.24 11.57 12.33W (acc) EUR-H1 (hedged) 1.04% 4,616,961.993 11.85 10.97 11.77W (acc) GBP-H1 (hedged) 0.98% 119,157.942 10.26 9.43 10.02W (acc) USD 1.03% 7,248,516.691 11.97 11.04 11.81W (Mdis) EUR 1.00% 744,453.605 11.40 10.32 11.70W (Mdis) GBP 1.03% 1,133,264.087 12.42 10.96 10.59W (Mdis) GBP-H1 (hedged) 1.04% 1,061,119.447 8.68 8.28 9.39W (Mdis) USD 1.03% 9,945,767.112 8.59 8.21 9.34W (Ydis) EUR 1.00% 471,149.495 11.57 10.80 12.00X (Ydis) USD 0.30% 220,142.680 9.94 9.75 10.87Y (Mdis) USD 0.11% 382,622.546 10.62 10.09 -Z (acc) USD 1.13% 5,314,948.255 14.04 12.95 13.88Z (Mdis) GBP-H1 (hedged) 1.15% 289,822.824 10.01 9.54 10.81Z (Mdis) USD 1.13% 3,624,845.370 9.51 9.08 10.36Z (Ydis) EUR-H1 (hedged) 1.14% 4,265,582.976 9.86 9.74 10.94

Templeton Growth (Euro) Fund – EURA (acc) EUR 1.84% 397,658,402.213 17.17 14.69 16.51A (acc) USD 1.84% 15,580,370.514 18.08 16.32 18.42A (Ydis) EUR 1.84% 15,589,740.145 17.44 15.00 16.98A (Ydis) USD 1.84% 1,606,791.526 18.31 16.61 18.88B (Ydis) EUR 3.14% 26,499.076 11.72 10.10 11.50I (acc) EUR 0.98% 6,716,665.776 19.55 16.66 18.56I (Ydis) EUR 0.98% 1,422,868.690 16.41 14.18 16.04I (Ydis) USD 0.98% 474,253.214 17.36 15.83 17.98N (acc) EUR 2.59% 1,952,952.825 15.10 12.97 14.69

Templeton Korea Fund – USDA (acc) SGD 2.58% 2,327,395.075 5.64 5.33 6.73A (acc) USD 2.58% 5,612,305.755 4.53 4.60 5.81C (acc) USD 3.13% 6,351.771 7.61 7.74 9.83I (acc) USD 1.52% 11,122.795 9.10 9.19 11.47N (acc) USD 3.08% 191,326.535 12.05 12.26 15.55

Templeton Latin America Fund – USDA (acc) EUR 2.29% 3,689,808.212 7.55 7.19 7.35A (acc) SGD 2.29% 2,095,098.975 6.03 5.63 5.78A (acc) USD 2.29% 2,456,737.239 51.07 51.27 52.65A (Ydis) EUR 2.29% 268,888.365 43.49 41.67 43.01A (Ydis) GBP 2.29% 23,677.501 37.30 34.81 30.62A (Ydis) USD 2.29% 16,181,244.359 45.70 46.19 47.87B (acc) USD 3.60% 714,092.150 9.14 9.24 9.61C (acc) USD 2.87% 227,974.073 9.84 9.91 10.23I (acc) USD 1.31% 4,422,903.503 16.46 16.44 16.71I (Ydis) EUR-H2 (hedged) 1.32% 3,741,772.532 7.13 7.14 7.37N (acc) EUR 2.80% 73,363.461 7.34 7.00 7.20N (acc) PLN-H1 (hedged) 2.80% 4,704,759.615 6.45 6.52 6.69N (acc) USD 2.79% 905,394.322 26.21 26.38 27.22W (acc) GBP 1.41% 61,981.755 8.93 8.24 7.12W (Ydis) USD 1.41% 179,666.745 6.70 6.79 7.05X (acc) USD 0.29% 500.000 7.89 7.84 7.89Z (acc) GBP 1.77% 21,667.422 8.81 8.15 7.07

Templeton Thailand Fund – USDA (acc) SGD 2.51% 392,597.463 17.45 15.63 14.77A (acc) USD 2.51% 5,556,651.020 21.43 20.64 19.50B (acc) USD 3.83% 152,571.432 20.24 19.62 18.78N (acc) USD 3.01% 378,708.970 26.58 25.66 24.37W (acc) USD 1.63% 115,434.444 11.11 10.65 9.98

* This Fund / share class was launched during the periodΩ This Fund / share class was closed during the period




Franklin Templeton Investment Funds (“FTIF” or the “Company”) is a collective investment undertaking pursuant to Part I of the amendedLuxembourg law of December 17, 2010 on undertakings for collective investment and qualifies as a société d’investissement à capital variable. TheCompany was incorporated in Luxembourg on November 6, 1990, for an undetermined period. At the date of this report, it offers shares in 93sub-funds of the Company (the “Funds”). The Board of Directors of the Company may authorise the creation of additional Funds in future withdifferent investment objectives.

The Company aims to provide investors with a choice of Funds investing in a wide range of transferable securities and other eligible assets on aworldwide basis and featuring a diverse array of investment objectives, including capital growth and income. The overall objective of the Companyis to seek to minimise investment exposure through diversification and to provide Shareholders with the benefit of a portfolio managed by FranklinTempleton Investments, according to its successful time-tested investment selection methods.

Changes to Investment PolicyThe investment policy of the Franklin Diversified Balanced Fund, Franklin Diversified Conservative Fund and Franklin Diversified Dynamic Fundhave been amended to reduce the proportion of investments made into collective investment schemes, in order to limit it to 10% of the Funds’ netassets.

In addition, the investment policy of the following Funds has been amended to allow such Funds to invest in China A-Shares through the Shenzhen-Hong Kong Stock Connect:➤ Franklin Global Equity Strategies Fund➤ Franklin Global Fundamental Strategies Fund➤ Franklin Global Growth and Value Fund➤ Franklin Global Multi-Asset Income Fund➤ Franklin World Perspectives Fund➤ Franklin Mutual European Fund➤ Templeton Asian Dividend Fund➤ Templeton BRIC Fund➤ Templeton China Fund➤ Templeton Emerging Markets Fund➤ Templeton Emerging Markets Balanced Fund➤ Templeton Emerging Markets Smaller Companies Fund➤ Templeton Growth (Euro) Fund

Changes to the Investment Manager structure of the CompanyWith effect from October 24, 2016, Franklin Templeton Institutional, LLC has been appointed as Investment Co-Manager of Franklin DiversifiedBalanced Fund and Franklin Diversified Conservative Fund with Franklin Templeton Investment Management Limited as lead InvestmentManager.

Fund launches➤ Templeton Global Currency Fund launched on October 7, 2016.➤ Franklin K2 Global Macro Opportunities Fund launched on November 4, 2016.➤ Franklin K2 Long Short Credit Fund launched on December 2, 2016.

Fund closuresThe following Funds closed on December 2, 2016:➤ Franklin Global Corporate High Yield Fund➤ Franklin Global Government Bond Fund

Note 2 — Significant accounting policies

(a) GeneralThe financial statements are prepared in accordance with the regulations of the Grand Duchy of Luxembourg relating to investment funds.

(b) Investment in securitiesSecurities which are listed on a stock exchange or traded on any other organised market are valued at the last available price on such exchange ormarket which is normally the principal market for each security, and those securities dealt in on an over-the-counter market are valued in a manneras near as possible to that for quoted securities.

Securities not listed on any stock exchange nor traded on any organised market are valued at the last available price, or if such price is notrepresentative of their fair value, they are valued prudently and in good faith on the basis of their reasonably foreseeable sales prices.

The Company has procedures to determine the fair value of individual securities and other assets for which market prices are not readily availableor which may not be reliably priced. In such circumstances, the price of such investment shall be adjusted in accordance with the proceduresadopted, as determined by or under the direction of the Board of Directors.

During the accounting period under review, gains and losses on investment securities sold were computed on the average cost basis for all Fundswith the exception of the Franklin High Yield Fund, the Franklin Income Fund, the Franklin U.S. Government Fund, the Templeton Asian BondFund and the Templeton BRIC Fund which were computed on the first-in, first-out basis.

During the accounting period under review, discounts and premiums were amortised to income over the period to maturity.

For mortgage-backed and other similar holdings with scheduled debt paydowns, the Funds record accruals, based on their historical experience,for anticipated paydowns. Such accruals are recorded as a reduction or increase to the related holdings as disclosed on the Schedule of Investmentsand are included in the related unrealised appreciation/depreciation on investments shown on the “Statement of Operations and Changes in NetAssets”.

Money market instruments are valued at market value with the exception of Franklin Euro Short-Term Money Market Fund, where all securitiesare valued at amortised cost. Under this method, the cost of investments is adjusted to income for the amortisation of premiums and discounts overthe life of the investments. Where the amortised cost basis does not reflect a prudent approach to the valuation of the security, the latest availableprice prevailing on the valuation day is used.


Notes to the Financial StatementsAt December 31, 2016

Note 1 — The Company


(c) Forward foreign exchange contractsForward foreign exchange contracts are valued at the forward rate applicable at the “Statement of Net Assets” date for the remaining period, untilmaturity. Gains or losses resulting from forward exchange contracts are recognised in the “Statement of Operations and Changes in Net Assets”.

(d) Financial future contractsThe Company may enter into financial future contracts to gain exposure to market changes. A financial future contract is an agreement betweentwo parties to buy or sell a security for a set price on a future date. Required initial margin deposits of cash or securities are maintained by a brokerin a segregated account. Subsequent payments, known as variation margin, are made or received by the Company depending on the fluctuationsin the value of the underlying securities. Such variation margin is accounted for as unrealised gains or losses until the contract is closed, at whichtime the gains or losses are reclassified to realised gains or losses. Realised and unrealised gains and losses are included in the “Statement ofOperations and Changes in Net Assets”.

(e) Interest rate swap contractsInterest rate swap contracts are used to hedge the risk of changes in interest rates and are agreements between two parties to exchange cash flowsbased on a notional principal amount. The net interest received or paid on interest rate swap contract agreements is accrued daily as interestincome/expense.

Interest rate swap contracts are marked to market daily based upon quotations from the market makers and the change, if any, is recorded as anunrealised gain or loss in the “Statement of Operations and Changes in Net Assets”. When the swap contract is terminated early, the Fund recordsa realised gain or loss equal to the difference between the current net present value and the executed net present value. Any outstanding interestaccrual is recorded as either a net receivable or net payable.

The risks of interest rate swap contracts include changes in market conditions and the possible inability of the counterparty to fulfill its obligationsunder the agreement.

(f) Inflation swap contractsAn inflation swap contract is a bilateral agreement in which each of the parties agree to exchange a series of interest payments for another seriesof interest payments based on a notional amount that serves as a computation basis and that is usually not exchanged.

Inflation swap contracts are marked to market daily based upon quotations from the market makers and the change, if any, is recorded as anunrealised gain or loss in the “Statement of Operations and Changes in Net Assets”. When the swap contract is terminated early, the Fund recordsa realised gain or loss equal to the difference between the current net present value and the executed net present value. Any outstanding interestaccrual is recorded as either a net receivable or net payable.

The risks of inflation swap contracts include changes in market conditions and the possible inability of the counterparty to fulfill its obligationsunder the agreement.

(g) Cross currency swap contractsA cross currency swap is an agreement between two parties to exchange interest payments and principals denominated in two different currencies.Cross currency swap contracts are marked to market daily based upon quotations from the market makers and the change in value, if any, isrecorded as an unrealised gain or loss in the “Statement of Operations and Changes in Net Assets”.

When the swap contract is terminated early, the Fund records a realised gain or loss equal to the difference between the current net present valueand the executed net present value. Any outstanding interest accrual is recorded as either a net receivable or net payable.

The risks of cross currency swap contracts include changes in market conditions and the possible inability of the counterparty to fulfill itsobligations under the agreement.

(h) Total return swap contractsA total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makespayments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

Total return swap contracts are marked to market daily based upon quotations from the market makers and the change in value, if any, is recordedas an unrealised gain or loss in the “Statement of Operations and Changes in Net Assets”.

When the swap contract is terminated early, the Fund records a realised gain or loss equal to the difference between the current net present valueand the executed net present value. Any outstanding interest accrual is recorded as either a net receivable or net payable.

The risks of total return swap contracts include changes in market conditions and the possible inability of the counterparty to fulfill its obligationsunder the agreement.

(i) Credit default swap contractsA credit default swap contract is a credit derivative transaction in which two parties enter into an agreement, whereby one party pays the other afixed periodic payment for the specified life of the agreement. The other party makes no payments unless a credit event, relating to a predeterminedreference asset, occurs. If such an event occurs, the party will then make a payment to the first party, and the swap will terminate. The value of theunderlying securities shall be taken into account for the calculation of the investment and borrowing powers applicable to individual users.

Credit default swap contracts are marked to market daily based upon quotations from the market makers and the change in value, if any, isrecorded as an unrealised gain or loss in the “Statement of Operations and Changes in Net Assets”. Any payment received or paid to initiate acontract is recorded as a liability or asset in the “Statement of Net Assets”. When the swap contract is terminated early, the Fund records a realisedgain or loss for any payments received or paid.

The risks of credit default swap contracts include unfavourable changes in interest rates, an illiquid secondary market and the possible inability ofthe counterparty to fulfill its obligations under the agreement, which may be in excess of the amount reflected in the “Statement of Net Assets”.

(j) Option contractsOptions are contracts entitling the holder to purchase or sell a specified number of shares or units of a particular security at a specified price at anytime until the contract-stated expiration date. Options purchased are recorded as investments; options written (sold) are recorded as liabilities.When the exercise of an option results in a cash settlement, the difference between the premium (original option value) and the settlement proceeds


Notes to the Financial StatementsAt December 31, 2016 (continued)

Note 2 — Significant accounting policies (continued)


(j) Option contracts (continued)is accounted for as a realised gain or loss. When securities are acquired or delivered upon exercise of an option, the acquisition cost or sale proceedsare adjusted by the amount of the premium. When an option is closed, the difference between the premium and the cost to close the position isaccounted for as a realised gain or loss. When an option expires, the premium is accounted for as a realised gain for options written or as a realisedloss for options purchased.

The risks include price movements in the underlying securities, the possibility there may be an illiquid options market, or the inability of thecounterparties to fulfill their obligations under the contract.

The Company writes options on securities, futures and interest rate swaps (“swaptions”). These options are settled in cash and subject the Companyto unlimited risk of loss. The Company, however, is not subject to credit risk on written options as the counterparty has already performed itsobligation by paying the premium at the inception of the contract.

The market values are recorded under “Option Contracts at Market Value” in the Statement of Net Assets.

(k) Foreign exchange transactionsTransactions expressed in currencies other than each Fund’s currency are translated into each Fund’s currency at the exchange rates applicable onthe transaction dates.

Assets and liabilities designated in currencies other than each Fund’s currency are translated into each Fund’s currency at the appropriate exchangerates ruling at the period-end. Gains and losses on foreign exchange transactions are recognised in the “Statement of Operations and Changes inNet Assets” in determining the results for the accounting period.

The reference currency of the Company as reflected in the financial statements is U.S. dollar. The principal exchange rates applied as atDecember 31, 2016 are as follows:AUD 1.3858093CAD 1.3428000CHF 1.0184000

CNH 6.9734000CZK 25.6730000EUR 0.9503897

GBP 0.8117871HKD 7.7545000HUF 293.9300000

JPY 116.8950000NOK 8.6390000PLN 4.1860000

SEK 9.1092000SGD 1.4479000

The list of the currency abbreviations is available in note 28.

(l) Mortgage dollar rollsIn a mortgage dollar roll, a Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchasesubstantially similar (name, type, coupon, and maturity) securities on a specified future date. During the period between the sale and repurchase,the Fund foregoes principal and interest paid on the mortgage-backed securities. The Fund is compensated by the difference between the currentsales price and the lower forward price for the future purchase, as well as by the interest earned on the cash proceeds of the initial sale.

The difference between the current sales price and the lower forward price is treated as realised gain.

(m) IncomeDividends are credited to income on their ex-dividend date. Interest income is accrued on a daily basis.

(n) Securities lendingUnless otherwise provided in the relevant Fund’s investment policy, a Fund may utilise up to 50% of its assets for securities lending transactions.The volume of the securities lending transactions of each Fund shall be kept at an appropriate level or each Fund shall be entitled to request thereturn of the securities lent in a manner that enables it, at all times, to meet its redemption obligations and that these transactions do not jeopardisethe management of each Fund’s assets in accordance with its investment policy. The counterparties to securities lending transactions must have aminimum credit rating of A- or better, as rated by Standard & Poor’s, Moody’s or Fitch, at the time of the transactions. Loans will be securedcontinuously by collateral which must at least equal the value of the securities lent. Securities lending income is disclosed under the caption“Securities lending” in the “Statement of Operations and Changes in Net Assets”. Any transaction expenses in connection with the loans arecharged to the concerned Fund.

(o) Formation expensesFormation expenses associated with the launch of the new Funds are expensed as incurred.

(p) Swing pricingA Fund may suffer dilution of the net asset value per share due to investors buying or selling shares in a Fund at a price that does not reflect dealingand other costs that arise when security trades are undertaken by the Investment Manager to accommodate cash inflows or outflows.

In order to counter this impact, a swing pricing mechanism may be adopted to protect the interests of Shareholders of the Fund. If on any valuationdate, the aggregate net capital activity of a Fund exceeds a pre-determined threshold, as determined and reviewed for each Fund on a periodic basis,the net asset value per share will be adjusted upwards or downwards to reflect net capital inflows or net capital outflows respectively.

The net capital inflows and net capital outflows will be determined based on the latest available information at the time of calculation of the netasset value per share. The swing pricing mechanism may be applied across all Funds. The extent of the price adjustment is set to reflect dealing andother costs. Such adjustment may vary from Fund to Fund and will not exceed 2% of the original net asset value per share.

In the case of a swing pricing event on the last day of the annual/semi-annual period, the net assets as disclosed in the Statement of Net Assets,exclude the swing pricing adjustment, however, the net asset value per share as at year/semi-annual period end, as disclosed in the StatisticalInformation, would include the swing pricing adjustment.

There was no swing pricing adjustment affecting the Funds’ net asset value per share on the last day of the period.



Note 2 — Significant accounting policies (continued)


Some Funds may invest into units of UCITS and other open and closed end UCIs which may include other Funds of Franklin Templeton InvestmentFunds. As at December 31, 2016, the following Funds held shares issued by another Fund of the Company.

Currency

Investment in securitiesat market value as

per Statement of Net AssetsMarket value of

Cross Funds investments

Investment in securitiesat market value after deduction

of Cross Funds investments

Franklin Diversified Balanced Fund EUR 146,999,898 15,959,124 131,040,774Franklin Diversified Conservative Fund EUR 194,846,424 26,566,924 168,279,500Franklin Diversified Dynamic Fund EUR 68,764,069 9,410,212 59,353,857Franklin European Income Fund EUR 17,650,993 528,473 17,122,520Franklin Global Multi-Asset Income Fund EUR 190,585,559 4,452,909 186,132,650Franklin NextStep Balanced Growth Fund USD 94,655,989 27,885,734 66,770,255Franklin NextStep Conservative Fund USD 18,953,220 5,872,801 13,080,419Franklin NextStep Dynamic Growth Fund USD 22,281,056 5,969,837 16,311,219Franklin NextStep Growth Fund USD 10,337,487 3,522,973 6,814,514Franklin NextStep Moderate Fund USD 27,208,578 9,323,346 17,885,232Franklin NextStep Stable Growth Fund USD 18,316,517 6,306,891 12,009,626

The total combined net assets at period-end without Cross Funds investments would amount to USD 97,811,808,392.

Note 4 — Time deposits (“TDs”) and cash repurchase agreements (“repos”)As at December 31, 2016, the Company had the following cash on time deposits and repos:

FundCounterparty

Value of TDsin Fund currency

Franklin GCC Bond FundRoyal Bank of Canada USD 3,400,000Franklin Global Equity Strategies FundBank of Montreal USD 3,000,000Royal Bank of Canada USD 4,700,000

7,700,000Franklin Global Growth FundRoyal Bank of Canada USD 1,600,000Franklin Global Growth and Value FundRoyal Bank of Canada USD 800,000Franklin Global Listed Infrastructure FundRoyal Bank of Canada USD 150,000Franklin Global Real Estate FundRoyal Bank of Canada USD 460,000Franklin India FundBank of Montreal USD 3,000,000National Australia Bank USD 92,000,000Royal Bank of Canada USD 14,000,000

109,000,000Franklin K2 Alternative Strategies FundBank of Montreal USD 90,814,700National Australia Bank USD 90,814,700Royal Bank of Canada USD 90,814,700

272,444,100Franklin K2 Global Macro Opportunities FundBank of Montreal USD 5,838,700National Australia Bank USD 5,838,700Royal Bank of Canada USD 5,838,700

17,516,100Franklin K2 Long Short Credit FundBank of Montreal USD 1,760,300National Australia Bank USD 1,760,300Royal Bank of Canada USD 1,760,300

5,280,900Franklin MENA FundRoyal Bank of Canada USD 1,800,000Franklin NextStep Balanced Growth FundBank of Montreal USD 1,300,000Royal Bank of Canada USD 1,500,000

2,800,000Franklin NextStep Conservative FundBank of Montreal USD 400,000Royal Bank of Canada USD 500,000

900,000

FundCounterparty


Franklin NextStep Dynamic Growth FundRoyal Bank of Canada USD 300,000Franklin NextStep Growth FundBank of Montreal USD 200,000Royal Bank of Canada USD 350,000

550,000Franklin NextStep Moderate FundBank of Montreal USD 500,000Royal Bank of Canada USD 1,000,000

1,500,000Franklin NextStep Stable Growth FundBank of Montreal USD 200,000Royal Bank of Canada USD 430,000

630,000Franklin World Perspectives FundRoyal Bank of Canada USD 3,400,000Templeton Africa FundRoyal Bank of Canada USD 2,200,000Templeton Asian Dividend FundRoyal Bank of Canada USD 380,000Templeton Asian Growth FundBank of Montreal USD 39,000,000Royal Bank of Canada USD 45,000,000

84,000,000Templeton Asian Smaller Companies FundBank of Montreal USD 11,000,000National Australia Bank USD 14,000,000Royal Bank of Canada USD 13,200,000

38,200,000Templeton BRIC FundBank of Montreal USD 8,000,000Royal Bank of Canada USD 10,300,000

18,300,000Templeton Emerging Markets FundBank of Montreal USD 5,000,000National Australia Bank USD 8,000,000Royal Bank of Canada USD 5,000,000

18,000,000Templeton Frontier Markets FundBank of Montreal USD 12,000,000National Australia Bank USD 9,000,000Royal Bank of Canada USD 13,700,000

34,700,000



Note 3 — Cross Funds investments


FundCounterparty


Templeton Global FundBank of Montreal USD 5,000,000National Australia Bank USD 15,000,000Royal Bank of Canada USD 10,500,000

30,500,000Templeton Global Equity Income FundRoyal Bank of Canada USD 2,100,000Templeton Global Smaller Companies FundRoyal Bank of Canada USD 5,000,000Templeton Growth (Euro) FundBank of Montreal EUR 27,662,517Royal Bank of Canada EUR 29,379,501

57,042,018

FundCounterparty


Templeton Korea FundRoyal Bank of Canada USD 1,000,000Templeton Latin America FundNational Australia Bank USD 5,000,000Royal Bank of Canada USD 3,100,000

8,100,000Templeton Thailand FundRoyal Bank of Canada USD 1,000,000

As at December 31, 2016, the Company had no outstanding cash repos.

Note 5 — Forward foreign exchange contractsAs at December 31, 2016, the Company had entered into the following outstanding contracts:

Franklin Asia Credit Fund

Purchases Sales MaturityDate

Unrealisedprofit/(loss)

USD

Forward foreign exchange contracts used for share class hedging:AUD 2,281,379 USD 1,707,130 17-Jan-17 (61,695)SGD 2,489,099 USD 1,745,294 17-Jan-17 (26,433)USD 37,960 AUD 51,753 17-Jan-17 632

(87,496)

The above contracts were opened with the following counterparties:

BNP Paribas (1,114)Citibank (1,371)Credit Suisse International (1,940)HSBC Bank (78,733)JPMorgan Chase Bank (530)Morgan Stanley (3,808)

(87,496)

Franklin Biotechnology Discovery Fund



USD

Forward foreign exchange contracts used for share class hedging:CHF 3,401,645 USD 3,378,119 10-Jan-17 (35,122)EUR 7,361,425 USD 7,938,573 10-Jan-17 (188,185)USD 91,291 CHF 92,156 10-Jan-17 724USD 185,659 EUR 174,331 10-Jan-17 2,117

(220,466)


Bank of America (33,408)Barclays Bank (22,248)BNP Paribas (854)Citibank (22,231)Credit Suisse International (2,592)Deutsche Bank (21,415)Goldman Sachs (17,754)HSBC Bank (22,453)JPMorgan Chase Bank (33,190)Morgan Stanley (19,000)The Bank of New York Mellon (7,987)UBS (17,334)

(220,466)



Note 4 — Time deposits (“TDs”) and cash repurchase agreements (“repos”) (continued)


As at December 31, 2016, the Company had entered into the following outstanding contracts:

Franklin Brazil Opportunities Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 5,547,152 USD 5,810,269 20-Jan-17 33,201


Bank of America 2,865Barclays Bank 238BNP Paribas 4,350Citibank 3,718Credit Suisse International 4,218Goldman Sachs 2,101HSBC Bank 2,597JPMorgan Chase Bank 5,337Morgan Stanley 4,467The Bank of New York Mellon 247UBS 3,063

33,201

Franklin Diversified Balanced Fund



EUR

Forward foreign exchange contracts used for share class hedging:CZK 6,053,154 EUR 224,486 20-Jan-17 (409)SGD 335,649 EUR 222,197 20-Jan-17 (2,172)USD 240,840 EUR 229,837 20-Jan-17 (1,211)

(3,792)

Forward foreign exchange contracts used for efficient portfolio management:EUR 3,433,614 BRL 12,315,000 13-Jan-17 (145,429)USD 3,241,765 CNH 22,587,000 13-Jan-17 18,897USD 4,892,039 KRW 5,705,340,000 13-Jan-17 158,481USD 3,266,651 NZD 4,548,000 13-Jan-17 103,315AUD 250,000 EUR 173,582 18-Jan-17 (2,401)CAD 480,000 EUR 329,554 18-Jan-17 9,902CHF 140,000 EUR 129,766 18-Jan-17 938EUR 650,000 USD 692,129 18-Jan-17 (7,104)MXN 3,500,000 EUR 160,282 18-Jan-17 (518)SEK 3,300,000 EUR 336,850 18-Jan-17 7,540EUR 3,081,292 JPY 361,205,000 31-Jan-17 144,207EUR 4,682,148 NZD 7,030,400 31-Jan-17 53,864EUR 30,246,651 USD 32,130,000 31-Jan-17 (236,377)USD 7,556,000 EUR 7,023,526 31-Jan-17 145,157

250,472

246,680


Barclays Bank 17,442Citibank 17,124Goldman Sachs (3,383)JPMorgan Chase Bank 215,497

246,680

Franklin Diversified Conservative Fund



EUR

Forward foreign exchange contracts used for share class hedging:CZK 5,890,710 EUR 218,471 20-Jan-17 (408)SGD 335,649 EUR 222,197 20-Jan-17 (2,172)USD 481,680 EUR 459,674 20-Jan-17 (2,422)

(5,002)

Forward foreign exchange contracts used for efficient portfolio management:EUR 4,412,232 BRL 15,760,000 13-Jan-17 (168,013)USD 4,495,300 CNH 31,321,000 13-Jan-17 26,204USD 6,783,846 KRW 7,911,660,000 13-Jan-17 219,768USD 4,530,072 NZD 6,307,000 13-Jan-17 143,274AUD 550,000 EUR 381,888 18-Jan-17 (5,287)CAD 1,020,000 EUR 701,168 18-Jan-17 20,175CHF 300,000 EUR 278,002 18-Jan-17 2,078



Note 5 — Forward foreign exchange contracts (continued)



Franklin Diversified Conservative Fund (continued)Purchases Sales Maturity

DateUnrealisedprofit/(loss)

EUR

EUR 1,900,000 USD 2,030,042 18-Jan-17 (27,311)MXN 7,600,000 EUR 347,947 18-Jan-17 (1,031)SEK 7,000,000 EUR 714,648 18-Jan-17 15,877USD 418,934 EUR 400,000 18-Jan-17 (2,267)EUR 1,087,260 JPY 127,450,000 31-Jan-17 50,919EUR 12,320,075 NZD 18,499,000 31-Jan-17 141,732EUR 53,861,868 USD 57,315,000 31-Jan-17 (515,187)USD 9,986,000 EUR 9,282,282 31-Jan-17 191,839

92,770

87,768


Bank of America 0Barclays Bank 36,052Citibank (234,111)Goldman Sachs (4,594)JPMorgan Chase Bank 290,421

87,768

Franklin Diversified Dynamic Fund



EUR

Forward foreign exchange contracts used for share class hedging:CZK 6,080,629 EUR 225,526 10-Jan-17 (431)NOK 2,032,851 EUR 224,754 10-Jan-17 (1,229)SEK 1,998,916 EUR 205,064 10-Jan-17 3,523SGD 344,468 EUR 225,559 10-Jan-17 391USD 245,951 EUR 228,578 10-Jan-17 5,029

7,283

Forward foreign exchange contracts used for efficient portfolio management:EUR 1,431,630 BRL 5,015,000 13-Jan-17 (25,853)USD 1,577,797 CNH 10,993,300 13-Jan-17 9,197USD 2,381,044 KRW 2,776,893,000 13-Jan-17 77,136USD 1,590,014 NZD 2,213,700 13-Jan-17 50,288EUR 2,255,323 JPY 264,364,000 31-Jan-17 105,685EUR 10,314,530 USD 10,953,000 31-Jan-17 (77,023)USD 3,689,000 EUR 3,429,331 31-Jan-17 70,572

210,002

217,285


Bank of America 83BNP Paribas (67)Citibank 105,639Deutsche Bank 2,180Goldman Sachs 5,500HSBC Bank 27JPMorgan Chase Bank 110,337Morgan Stanley (29)UBS (6,385)

217,285






Franklin Euro High Yield Fund



EUR

Forward foreign exchange contracts used for share class hedging:USD 30,334,549 EUR 28,961,290 20-Jan-17 (165,002)

Forward foreign exchange contracts used for efficient portfolio management:EUR 81,829,835 GBP 73,700,000 18-Jan-17 (4,410,804)GBP 11,500,000 EUR 12,964,976 18-Jan-17 491,841EUR 26,921,649 USD 29,000,000 16-Feb-17 (573,431)EUR 32,174,457 USD 36,000,000 16-Mar-17 (1,907,741)USD 5,000,000 EUR 4,665,049 16-Mar-17 68,589

(6,331,546)

(6,496,548)


Bank of America (3,318)BNP Paribas (28,163)Citibank (32,737)Deutsche Bank (2,412,583)Goldman Sachs (12,132)HSBC Bank (25,137)JPMorgan Chase Bank (29,211)Morgan Stanley (3,943,172)UBS (10,095)

(6,496,548)

Franklin Euro Short Duration Bond Fund



EUR

Forward foreign exchange contracts used for efficient portfolio management:EUR 6,503,873 GBP 5,500,000 14-Mar-17 76,958SEK 20,000,000 EUR 2,056,232 14-Mar-17 31,695

108,653


Barclays Bank 31,695Citibank 76,958

108,653

Franklin European Corporate Bond Fund



EUR

Forward foreign exchange contracts used for efficient portfolio management:SEK 26,500,000 EUR 2,724,507 14-Mar-17 41,996

The above contracts were opened with the following counterparty:

Barclays Bank 41,996

Franklin European Dividend Fund



EUR

Forward foreign exchange contracts used for share class hedging:PLN 73,891,925 EUR 16,593,678 16-Jan-17 161,314SGD 325,543 EUR 214,634 16-Jan-17 (1,180)

160,134






Franklin European Dividend Fund (continued)Unrealisedprofit/(loss)

EUR


Bank of America 25,715Barclays Bank 15,449BNP Paribas 3,624Citibank 11,121Credit Suisse International 6,133Deutsche Bank 17,332Goldman Sachs 17,039HSBC Bank 16,545JPMorgan Chase Bank 13,660Morgan Stanley 18,374UBS 15,142

160,134

Franklin European Growth Fund



EUR

Forward foreign exchange contracts used for share class hedging:NOK 162,926,425 EUR 18,040,117 10-Jan-17 (125,254)SGD 12,086,637 EUR 7,905,099 10-Jan-17 22,955USD 64,636,014 EUR 59,941,737 10-Jan-17 1,450,418

1,348,119


Bank of America 211,480Barclays Bank 177,291BNP Paribas 53,430Citibank 122,011Credit Suisse International 51,271Deutsche Bank 171,520Goldman Sachs 145,747HSBC Bank 124,999JPMorgan Chase Bank 90,639Morgan Stanley 119,072The Bank of New York Mellon (3,010)UBS 83,669

1,348,119

Franklin European Income Fund



EUR

Forward foreign exchange contracts used for share class hedging:EUR 79,940 SGD 121,274 16-Jan-17 423SGD 2,779,973 EUR 1,832,774 16-Jan-17 (9,984)USD 322,642 EUR 303,364 17-Jan-17 2,969

(6,592)

Forward foreign exchange contracts used for efficient portfolio management:EUR 59,126 GBP 50,000 14-Mar-17 700EUR 166,240 NOK 1,500,000 14-Mar-17 1,759EUR 277,702 SEK 2,700,000 14-Mar-17 (4,168)SEK 4,100,000 EUR 421,528 14-Mar-17 6,497

4,788

(1,804)






Franklin European Income Fund (continued)Unrealisedprofit/(loss)

EUR


Bank of America (87)Barclays Bank 6,650BNP Paribas (236)Citibank (1,984)Credit Suisse International (241)Deutsche Bank 849Goldman Sachs (317)HSBC Bank (4,768)JPMorgan Chase Bank (643)Morgan Stanley 145UBS (1,172)

(1,804)

Franklin European Small-Mid Cap Growth Fund



EUR

Forward foreign exchange contracts used for share class hedging:USD 241,034 EUR 223,338 10-Jan-17 5,599


Bank of America 4,286Citibank 375JPMorgan Chase Bank 372Morgan Stanley 566

5,599

Franklin European Total Return Fund



EUR

Forward foreign exchange contracts used for share class hedging:NOK 3,422,731 EUR 381,383 16-Jan-17 (5,131)PLN 34,144,073 EUR 7,670,632 16-Jan-17 71,535SEK 2,529,659 EUR 260,271 16-Jan-17 3,718

70,122

Forward foreign exchange contracts used for efficient portfolio management:EUR 24,005,203 GBP 20,300,000 14-Mar-17 284,043SEK 180,000,000 EUR 18,506,087 14-Mar-17 285,258

569,301

639,423


Bank of America 30,225Barclays Bank 285,259BNP Paribas (39)Citibank 289,868Credit Suisse International (117)Goldman Sachs 6,705HSBC Bank (194)JPMorgan Chase Bank 10,943Morgan Stanley 16,770UBS 3

639,423

Franklin Flexible Alpha Bond Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 5,365,106 USD 5,705,188 17-Jan-17 (54,421)GBP 938,146 USD 1,192,864 17-Jan-17 (36,606)USD 2,247,293 EUR 2,149,859 17-Jan-17 (17,033)

(108,060)






Franklin Flexible Alpha Bond Fund (continued)Purchases Sales Maturity


USD

Forward foreign exchange contracts used for efficient portfolio management:EUR 5,160,000 USD 5,394,780 04-Jan-17 36,067USD 5,815,526 EUR 5,160,000 04-Jan-17 384,679CLP 616,000,000 USD 912,525 05-Jan-17 6,495USD 923,358 CLP 616,000,000 05-Jan-17 4,338NZD 10,415,780 USD 7,261,495 13-Jan-17 (29,397)USD 7,571,231 NZD 10,415,780 13-Jan-17 339,133PLN 2,400,000 USD 582,242 17-Jan-17 (9,109)USD 624,350 PLN 2,400,000 17-Jan-17 51,217USD 2,222,137 KRW 2,557,000,000 18-Jan-17 104,548USD 4,276,349 GBP 3,440,000 08-Feb-17 34,263INR 107,000,000 USD 1,584,246 10-Feb-17 (16,113)USD 505,324 ZAR 7,000,000 10-Feb-17 13USD 1,729,325 SGD 2,430,000 14-Feb-17 51,515MXN 57,350,000 USD 2,768,445 17-Feb-17 (21,626)USD 4,764,983 AUD 6,370,000 14-Mar-17 176,682USD 948,045 JPY 111,000,000 30-Mar-17 (5,935)USD 2,056,594 CAD 2,740,000 04-Apr-17 13,674USD 5,418,826 EUR 5,160,000 04-Apr-17 (37,466)USD 1,117,483 CLP 760,000,000 13-Apr-17 (7,600)USD 311,329 CHF 302,550 28-Jul-17 10,141USD 9,725,613 JPY 1,071,577,807 17-Dec-18 149,512USD 1,687,811 GBP 1,265,700 15-Aug-19 81,958

1,316,989

1,208,929


Bank of America (218)Citibank (273)Deutsche Bank (244)Goldman Sachs (660)JPMorgan Chase Bank 193,098Morgan Stanley (58,152)Royal Bank of Scotland 483,855UBS 591,523

1,208,929

Franklin Global Aggregate Bond Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 24,560,619 USD 25,719,726 20-Jan-17 152,872USD 600,449 EUR 573,739 20-Jan-17 (3,936)

148,936

Forward foreign exchange contracts used for efficient portfolio management:JPY 178,200,000 USD 1,727,729 18-Jan-17 (201,552)MXN 31,000,000 USD 1,619,729 18-Jan-17 (129,252)MYR 6,600,000 USD 1,568,814 18-Jan-17 (99,437)USD 5,382,090 AUD 7,120,000 18-Jan-17 246,964USD 8,125,995 EUR 7,420,000 18-Jan-17 310,495USD 3,586,828 PLN 14,000,000 18-Jan-17 243,621

370,839

519,775






Franklin Global Aggregate Bond Fund (continued)Unrealisedprofit/(loss)

USD


Bank of America 11,805Barclays Bank 289,540BNP Paribas 43,342Citibank 216,992Credit Suisse International 1,276Goldman Sachs 7,847HSBC Bank 4,334JPMorgan Chase Bank 49,136Morgan Stanley 24,208Royal Bank of Canada (129,252)The Bank of New York Mellon 147UBS 400

519,775

Franklin Global Aggregate Investment Grade Bond Fund



USD

Forward foreign exchange contracts used for efficient portfolio management:AUD 4,250,000 USD 3,214,527 18-Jan-17 (149,319)EUR 3,300,000 USD 3,576,455 18-Jan-17 (100,557)MXN 17,300,000 USD 903,913 18-Jan-17 (72,131)MYR 5,000,000 USD 1,188,495 18-Jan-17 (75,331)PLN 8,600,000 USD 2,138,181 18-Jan-17 (84,497)USD 3,817,353 AUD 5,050,000 18-Jan-17 175,164USD 4,419,893 EUR 4,000,000 18-Jan-17 206,685USD 840,437 MYR 3,500,000 18-Jan-17 61,222USD 3,330,626 PLN 13,000,000 18-Jan-17 226,220

187,456


Barclays Bank 237,665Citibank 21,922Royal Bank of Canada (72,131)

187,456

Franklin Global Convertible Securities Fund



USD

Forward foreign exchange contracts used for share class hedging:CHF 311,778 USD 304,073 20-Jan-17 2,564EUR 16,069,615 USD 16,835,130 20-Jan-17 92,894USD 142,212 EUR 135,845 20-Jan-17 (890)

94,568


Bank of America 7,559Barclays Bank 600BNP Paribas 5,712Citibank 4,520Credit Suisse International 844Deutsche Bank 1,342Goldman Sachs 50,044HSBC Bank 5,166JPMorgan Chase Bank 4,189Morgan Stanley 8,679The Bank of New York Mellon 1,916UBS 3,997

94,568






Franklin Global Equity Strategies Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 5,852,860 USD 6,305,317 10-Jan-17 (143,206)


Bank of America (12,558)Barclays Bank (10,998)Citibank (15,628)Credit Suisse International (74)Deutsche Bank (7,277)Goldman Sachs (18,826)HSBC Bank (5,626)JPMorgan Chase Bank (26,254)Morgan Stanley (24,947)The Bank of New York Mellon (603)UBS (20,415)

(143,206)

Franklin Global Fundamental Strategies Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 181,039,890 USD 189,631,541 20-Jan-17 1,079,156PLN 50,860,932 USD 12,005,765 20-Jan-17 139,362

1,218,518

Forward foreign exchange contracts used for efficient portfolio management:MYR 2,796,200 USD 678,442 05-Jan-17 (55,375)CLP 360,295,000 USD 542,736 09-Jan-17 (5,464)MYR 8,582,424 USD 1,952,317 09-Jan-17 (40,438)USD 16,662,792 EUR 15,007,573 09-Jan-17 863,123USD 9,309,755 JPY 1,012,481,000 10-Jan-17 642,604CLP 84,400,000 USD 125,661 11-Jan-17 166MYR 300,000 USD 74,934 11-Jan-17 (8,113)USD 2,259,749 EUR 2,011,437 11-Jan-17 141,916USD 1,263,956 JPY 126,230,000 11-Jan-17 183,323CLP 72,227,000 USD 107,393 12-Jan-17 273USD 11,302,318 EUR 10,167,186 13-Jan-17 596,151USD 3,561,142 JPY 362,330,000 13-Jan-17 458,929CLP 72,227,000 USD 107,289 17-Jan-17 312USD 60,678,007 EUR 55,538,051 17-Jan-17 2,182,894USD 315,310 JPY 36,800,000 17-Jan-17 159CLP 991,277,000 USD 1,469,082 18-Jan-17 7,510INR 6,186,000 USD 91,397 18-Jan-17 (531)USD 321,053 EUR 290,000 18-Jan-17 15,596MYR 1,513,964 USD 382,604 19-Jan-17 (45,568)USD 10,658,979 EUR 9,647,215 19-Jan-17 496,988USD 994,691 JPY 104,835,000 19-Jan-17 96,788CLP 126,465,000 USD 187,015 20-Jan-17 1,320INR 46,074,000 USD 681,752 20-Jan-17 (5,102)USD 857,743 EUR 777,914 20-Jan-17 38,274MYR 1,598,000 EUR 356,645 23-Jan-17 (20,111)MYR 7,231,000 USD 1,793,228 23-Jan-17 (183,907)USD 3,668,098 EUR 3,325,524 23-Jan-17 164,352USD 139,485 JPY 16,100,000 23-Jan-17 1,556CLP 164,960,000 USD 245,181 24-Jan-17 364INR 8,089,000 USD 119,414 25-Jan-17 (674)MYR 2,095,725 USD 520,160 25-Jan-17 (53,801)USD 3,386,808 JPY 357,000,000 25-Jan-17 328,035MYR 1,046,000 USD 261,297 26-Jan-17 (28,548)CLP 305,082,250 USD 462,316 27-Jan-17 (8,361)INR 95,339,000 USD 1,408,601 27-Jan-17 (9,375)MYR 899,000 EUR 201,119 27-Jan-17 (11,917)MYR 2,633,000 USD 657,707 27-Jan-17 (71,867)USD 1,297,463 EUR 1,185,397 27-Jan-17 48,263USD 1,806,635 JPY 211,630,000 27-Jan-17 (6,826)CLP 286,344,000 USD 425,885 30-Jan-17 57EUR 1,301,427 USD 1,403,628 30-Jan-17 (31,943)USD 3,743,087 EUR 3,412,807 30-Jan-17 146,039CLP 429,517,000 USD 643,940 31-Jan-17 (5,067)INR 76,304,000 USD 1,129,892 31-Jan-17 (10,474)MYR 746,000 USD 179,435 31-Jan-17 (13,484)USD 28,602,980 EUR 26,076,642 31-Jan-17 1,117,442






Franklin Global Fundamental Strategies Fund (continued)Purchases Sales Maturity


USD

USD 917,082 JPY 107,390,272 31-Jan-17 (3,326)USD 880,139 EUR 802,000 01-Feb-17 34,772EUR 801,000 USD 864,023 02-Feb-17 (19,675)USD 880,571 EUR 801,000 02-Feb-17 36,224INR 6,186,000 USD 91,672 03-Feb-17 (948)USD 8,157,439 EUR 7,389,000 03-Feb-17 368,242CLP 275,936,500 USD 419,542 06-Feb-17 (9,273)INR 38,629,500 USD 573,017 07-Feb-17 (6,710)CLP 315,388,000 USD 480,408 08-Feb-17 (11,544)INR 40,462,500 USD 599,933 08-Feb-17 (6,815)MYR 90,000 USD 22,155 08-Feb-17 (2,139)USD 3,276,682 EUR 2,929,300 08-Feb-17 188,083USD 7,367,486 JPY 851,730,000 08-Feb-17 65,396CLP 59,774,000 USD 90,580 09-Feb-17 (1,725)USD 11,842,194 EUR 10,641,000 09-Feb-17 622,054USD 7,613,972 JPY 879,106,000 09-Feb-17 76,898INR 4,042,000 USD 59,846 10-Feb-17 (609)USD 686,828 EUR 610,000 10-Feb-17 43,602USD 995,647 JPY 101,326,000 10-Feb-17 126,889MYR 130,000 USD 32,158 13-Feb-17 (3,252)USD 1,141,002 EUR 997,000 13-Feb-17 89,565USD 26,954,875 EUR 24,564,993 14-Feb-17 1,047,513CLP 121,075,000 USD 182,755 15-Feb-17 (2,845)INR 57,362,000 USD 852,629 16-Feb-17 (12,480)MYR 447,000 USD 102,218 16-Feb-17 (2,834)USD 13,539,147 AUD 18,020,000 16-Feb-17 551,761USD 7,234,048 EUR 6,737,000 16-Feb-17 128,306USD 2,634,770 JPY 288,230,490 16-Feb-17 162,960CLP 241,987,000 USD 358,499 17-Feb-17 1,030USD 1,553,364 EUR 1,441,500 17-Feb-17 32,902CLP 17,569,580 USD 25,817 21-Feb-17 280INR 38,658,000 USD 563,281 21-Feb-17 2,630MYR 1,514,798 USD 360,615 21-Feb-17 (23,878)USD 1,802,301 AUD 2,390,000 21-Feb-17 79,970USD 3,953,537 EUR 3,668,142 21-Feb-17 83,815USD 7,825,193 KRW 9,132,000,000 21-Feb-17 263,159CLP 17,780,420 USD 26,167 22-Feb-17 241USD 3,267,498 EUR 3,031,925 22-Feb-17 68,822USD 10,186,823 EUR 9,476,640 23-Feb-17 188,567CLP 651,852,250 USD 960,071 27-Feb-17 7,765INR 6,186,000 USD 89,828 27-Feb-17 673USD 2,019,038 EUR 1,893,475 27-Feb-17 21,008USD 1,066,518 JPY 118,090,000 27-Feb-17 53,383CLP 821,890,000 USD 1,201,928 28-Feb-17 18,289USD 1,587,249 EUR 1,461,054 28-Feb-17 45,454USD 1,481,825 JPY 150,250,000 28-Feb-17 192,731USD 1,595,534 EUR 1,500,352 01-Mar-17 12,174USD 69,100 JPY 7,689,000 01-Mar-17 3,128CLP 133,100,000 USD 195,879 06-Mar-17 1,650USD 334,226 EUR 313,226 06-Mar-17 3,572USD 148,542 EUR 134,000 07-Mar-17 7,077USD 7,211,629 KRW 8,434,000,000 07-Mar-17 227,663USD 1,084,941 JPY 109,129,300 09-Mar-17 148,165CLP 174,752,000 USD 262,194 13-Mar-17 (2,969)MYR 796,380 USD 196,114 13-Mar-17 (19,257)USD 10,242,199 AUD 13,589,000 13-Mar-17 453,842USD 719,327 EUR 678,450 13-Mar-17 2,829USD 387,854 JPY 44,500,000 13-Mar-17 5,774INR 26,339,000 USD 385,355 14-Mar-17 (818)MYR 3,155,884 USD 771,044 14-Mar-17 (70,240)USD 10,216,141 AUD 13,745,000 14-Mar-17 315,641USD 105,122 EUR 98,500 14-Mar-17 1,092USD 1,566,458 EUR 1,469,000 15-Mar-17 14,890USD 150,396 AUD 201,300 16-Mar-17 5,407USD 3,463,420 EUR 3,238,054 16-Mar-17 43,164INR 7,069,000 USD 103,514 17-Mar-17 (354)USD 743,580 AUD 1,020,000 17-Mar-17 8,926MYR 1,046,049 USD 257,552 20-Mar-17 (25,346)USD 16,869,123 AUD 22,937,800 20-Mar-17 349,326USD 7,204,717 KRW 7,873,000,000 20-Mar-17 685,534USD 1,666,715 JPY 169,538,234 21-Mar-17 210,383MYR 2,760,000 USD 671,615 22-Mar-17 (59,012)USD 2,528,083 JPY 255,296,000 23-Mar-17 334,842USD 1,025,542 JPY 105,782,876 24-Mar-17 116,712USD 5,992,051 KRW 6,709,000,000 27-Mar-17 436,818PHP 9,270,000 USD 189,687 28-Mar-17 (5,122)








USD

USD 6,084,759 KRW 6,741,000,000 28-Mar-17 503,044PHP 13,240,000 USD 278,122 29-Mar-17 (14,551)MYR 440,000 USD 108,897 31-Mar-17 (11,288)USD 147,657 JPY 16,537,000 31-Mar-17 5,524MYR 5,033,500 USD 1,260,329 03-Apr-17 (143,893)MYR 405,910 USD 103,351 05-Apr-17 (13,330)MYR 3,855,100 USD 976,345 07-Apr-17 (121,478)USD 15,246,743 JPY 1,559,042,140 07-Apr-17 1,842,194MYR 368,000 USD 93,995 11-Apr-17 (12,410)USD 8,099,973 JPY 832,900,000 11-Apr-17 937,284USD 8,358,369 JPY 860,000,000 13-Apr-17 961,871MYR 1,361,160 USD 345,604 18-Apr-17 (43,959)USD 854,540 JPY 91,900,000 18-Apr-17 63,944USD 8,544,655 KRW 9,711,000,000 18-Apr-17 502,907USD 170,334 JPY 18,015,000 20-Apr-17 15,340USD 1,133,330 JPY 122,220,000 21-Apr-17 81,737USD 836,554 JPY 86,260,000 24-Apr-17 94,250USD 7,858,051 KRW 8,957,000,000 25-Apr-17 440,410USD 2,178,105 KRW 2,496,000,000 26-Apr-17 111,059USD 2,626,730 KRW 3,008,000,000 02-May-17 135,592USD 10,243,430 JPY 1,049,000,000 08-May-17 1,209,865USD 958,682 JPY 99,198,000 15-May-17 104,122USD 1,945,535 KRW 2,229,000,000 15-May-17 99,410USD 461,237 JPY 49,560,700 16-May-17 34,265USD 2,000,348 KRW 2,300,000,000 16-May-17 95,407USD 22,825,733 JPY 2,450,000,000 17-May-17 1,717,585USD 6,652,986 KRW 7,781,000,000 17-May-17 208,453USD 9,944,584 JPY 1,068,477,850 18-May-17 738,565USD 3,666,581 KRW 4,291,000,000 18-May-17 112,585MYR 716,680 USD 176,110 19-May-17 (17,572)USD 8,082,117 JPY 870,039,850 19-May-17 585,459USD 4,659,599 JPY 503,278,000 22-May-17 322,461USD 3,159,679 KRW 3,710,000,000 22-May-17 86,825USD 1,162,851 JPY 127,816,000 25-May-17 61,192USD 5,730,079 KRW 6,738,000,000 25-May-17 149,154USD 1,959,150 JPY 213,802,000 02-Jun-17 115,611USD 6,955,071 KRW 8,127,000,000 02-Jun-17 223,372USD 853,269 JPY 91,761,397 05-Jun-17 61,921USD 826,986 JPY 87,300,000 08-Jun-17 73,998USD 1,157,522 JPY 130,800,000 09-Jun-17 29,275USD 1,179,816 JPY 134,440,000 13-Jun-17 19,933USD 1,439,669 KRW 1,668,000,000 15-Jun-17 57,944USD 3,530,214 JPY 394,812,000 16-Jun-17 123,443USD 2,991,086 JPY 312,380,000 19-Jun-17 295,193USD 2,170,065 JPY 222,730,000 20-Jun-17 247,768USD 3,178,002 KRW 3,710,000,000 20-Jun-17 104,656PHP 18,790,000 USD 399,193 21-Jun-17 (28,049)MXN 889,699,804 USD 46,054,290 22-Jun-17 (4,216,115)USD 3,040,420 JPY 312,920,000 22-Jun-17 339,450PHP 52,679,210 USD 1,100,119 29-Jun-17 (60,322)MYR 2,020,304 USD 499,642 14-Jul-17 (54,091)USD 2,301,994 JPY 235,540,000 14-Jul-17 266,519MYR 30,000 USD 7,431 17-Jul-17 (816)MYR 619,000 EUR 137,440 20-Jul-17 (9,673)MYR 1,373,000 USD 344,041 20-Jul-17 (41,329)USD 2,221,463 JPY 231,943,000 25-Jul-17 215,863USD 1,758,928 JPY 182,649,759 31-Jul-17 179,043USD 256,071 JPY 25,470,000 15-Aug-17 35,579USD 856,420 JPY 84,580,000 18-Aug-17 124,096USD 2,800,543 JPY 276,126,000 22-Aug-17 409,220USD 764,701 JPY 75,476,000 24-Aug-17 110,986USD 1,083,939 JPY 107,085,000 28-Aug-17 156,248USD 1,277,363 JPY 125,993,000 30-Aug-17 185,750USD 1,229,047 JPY 123,765,000 01-Sep-17 156,620USD 265,769 JPY 26,867,256 19-Sep-17 32,733USD 4,136,083 JPY 418,675,000 10-Oct-17 499,952USD 192,358 JPY 19,740,980 09-Nov-17 20,576USD 730,346 JPY 74,884,000 14-Nov-17 78,506USD 247,298 JPY 26,194,000 16-Nov-17 19,258USD 704,066 JPY 75,528,000 21-Nov-17 46,320USD 832,897 JPY 90,740,000 27-Nov-17 42,366








USD

USD 1,597,332 JPY 178,870,000 12-Dec-17 37,482USD 1,104,050 JPY 124,560,000 13-Dec-17 17,744

25,374,963

26,593,481


Bank of America 4,154,129Barclays Bank 4,589,554BNP Paribas 129,287Citibank (397,936)Credit Suisse International 125,454Deutsche Bank 4,750,078Goldman Sachs 565,132HSBC Bank 5,324,909JPMorgan Chase Bank 6,570,241Morgan Stanley 269,604Standard Chartered 346,157The Bank of New York Mellon 49,470UBS 117,402

26,593,481

Franklin Global High Income Bond Fund



USD

Forward foreign exchange contracts used for share class hedging:SGD 518,219 USD 365,168 10-Jan-17 (7,289)

Forward foreign exchange contracts used for efficient portfolio management:EUR 1,886,659 USD 2,109,644 18-May-17 (110,161)GBP 831,070 USD 1,015,991 18-May-17 11,372

(98,789)

(106,078)


Bank of America (461)Barclays Bank (103)BNP Paribas (318)Citibank (349)Credit Suisse International (2,218)Deutsche Bank (78,709)Goldman Sachs (436)HSBC Bank (154)JPMorgan Chase Bank (21,492)Morgan Stanley (709)The Bank of New York Mellon (380)UBS (749)

(106,078)

Franklin Global Listed Infrastructure Fund



USD

Forward foreign exchange contracts used for share class hedging:GBP 178,480 USD 226,333 10-Jan-17 (6,403)SGD 937,991 USD 661,044 10-Jan-17 (13,272)

(19,675)






Franklin Global Listed Infrastructure Fund (continued)Unrealisedprofit/(loss)

USD


Bank of America (1,261)Barclays Bank (870)BNP Paribas (1,988)Citibank (2,387)Credit Suisse International (923)Deutsche Bank (2,759)Goldman Sachs (1,506)HSBC Bank (584)JPMorgan Chase Bank (1,817)Morgan Stanley (3,045)UBS (2,535)

(19,675)

Franklin Global Multi-Asset Income Fund



EUR

Forward foreign exchange contracts used for share class hedging:SGD 299,453 EUR 198,655 20-Jan-17 (2,358)USD 19,697,639 EUR 18,814,745 20-Jan-17 (115,967)

(118,325)

Forward foreign exchange contracts used for efficient portfolio management:EUR 4,422,537 BRL 15,760,000 13-Jan-17 (157,709)USD 4,336,845 CNH 30,221,000 13-Jan-17 24,734USD 6,549,958 KRW 7,633,780,000 13-Jan-17 216,209USD 4,370,557 NZD 6,085,000 13-Jan-17 138,173AUD 730,000 EUR 501,235 18-Jan-17 (1,384)CAD 1,400,000 USD 1,053,870 18-Jan-17 (10,460)CHF 365,000 EUR 336,158 18-Jan-17 4,606EUR 600,000 USD 640,149 18-Jan-17 (7,754)MXN 3,300,000 EUR 149,672 18-Jan-17 962MXN 7,000,000 USD 366,189 18-Jan-17 (28,131)SEK 9,300,000 EUR 950,033 18-Jan-17 20,519USD 663,624 EUR 600,000 18-Jan-17 30,041EUR 4,192,800 JPY 493,650,000 31-Jan-17 178,757EUR 6,708,285 NZD 10,100,000 31-Jan-17 59,208EUR 72,139,463 USD 76,793,000 31-Jan-17 (717,156)USD 9,424,000 EUR 8,759,887 31-Jan-17 181,043

(68,342)

(186,667)


Bank of America (27,252)Barclays Bank 9,969BNP Paribas (2,429)Citibank (253,500)Credit Suisse International (78)Deutsche Bank (3,061)Goldman Sachs (18,648)HSBC Bank (2,213)JPMorgan Chase Bank 129,177Morgan Stanley (18,168)UBS (464)

(186,667)

Franklin Global Real Estate Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 19,381,403 USD 20,301,107 20-Jan-17 115,615USD 755,896 EUR 722,434 20-Jan-17 (5,130)

110,485






Franklin Global Real Estate Fund (continued)Unrealisedprofit/(loss)

USD


Bank of America 14,078Barclays Bank 1,081BNP Paribas 14,778Citibank 8,748Credit Suisse International 4,525Goldman Sachs 12,253HSBC Bank 9,513JPMorgan Chase Bank 16,285Morgan Stanley 15,292The Bank of New York Mellon 2,036UBS 11,896

110,485

Franklin Gold and Precious Metals Fund



USD

Forward foreign exchange contracts used for share class hedging:CHF 6,957,354 USD 6,783,930 20-Jan-17 58,716EUR 10,824,181 USD 11,337,528 20-Jan-17 64,862USD 562,899 CHF 578,158 20-Jan-17 (5,727)USD 918,906 EUR 880,366 20-Jan-17 (8,488)

109,363


Bank of America 13,443Barclays Bank 1,499BNP Paribas 11,317Citibank 12,478Credit Suisse International 8,400Deutsche Bank 5,949Goldman Sachs 10,572HSBC Bank 5,080JPMorgan Chase Bank 12,066Morgan Stanley 13,138The Bank of New York Mellon 4,897UBS 10,524

109,363

Franklin High Yield Fund



USD

Forward foreign exchange contracts used for share class hedging:AUD 14,779,029 USD 11,036,999 10-Jan-17 (375,656)EUR 20,395,297 USD 21,974,168 10-Jan-17 (501,229)SGD 19,889,358 USD 14,020,209 10-Jan-17 (284,735)

(1,161,620)


Bank of America (66,641)Barclays Bank (11,164)BNP Paribas (21,848)Citibank (139,414)Credit Suisse International (25,839)Deutsche Bank (94,221)Goldman Sachs (104,936)HSBC Bank (183,411)JPMorgan Chase Bank (126,102)Morgan Stanley (229,318)UBS (158,726)

(1,161,620)






Franklin Income Fund



USD

Forward foreign exchange contracts used for share class hedging:AUD 2,146,898 USD 1,574,246 20-Jan-17 (25,933)EUR 46,741,490 USD 48,954,996 20-Jan-17 283,334SGD 20,812,377 USD 14,435,847 20-Jan-17 (64,097)

193,304


Bank of America 11,571Barclays Bank 11,483BNP Paribas 811Citibank 47,135Credit Suisse International (6,948)Goldman Sachs 27,749HSBC Bank 14,844JPMorgan Chase Bank 51,015Morgan Stanley 36,818UBS (1,174)

193,304

Franklin India Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 2,154,307 USD 2,308,926 10-Jan-17 (40,788)PLN 62,352,166 USD 15,045,555 10-Jan-17 (153,439)USD 120,407 EUR 115,422 10-Jan-17 (1,114)USD 386,763 PLN 1,633,159 10-Jan-17 (3,298)

(198,639)


Bank of America (17,337)Barclays Bank (2,965)BNP Paribas (15,930)Citibank (15,739)Credit Suisse International (12,172)Deutsche Bank (18,017)Goldman Sachs (14,905)HSBC Bank (20,796)JPMorgan Chase Bank (35,707)Morgan Stanley (28,557)The Bank of New York Mellon (623)UBS (15,891)

(198,639)

Franklin Japan Fund



JPY

Forward foreign exchange contracts used for share class hedging:JPY 26,086,256 USD 221,807 20-Jan-17 190,635USD 9,022,601 JPY 1,063,775,620 20-Jan-17 (10,402,286)

(10,211,651)


Bank of America (2,178,132)BNP Paribas (103,125)Citibank (2,063,686)Credit Suisse International (201,058)Goldman Sachs (193,497)HSBC Bank (224,459)JPMorgan Chase Bank (2,045,272)Morgan Stanley (1,855,171)UBS (1,347,251)

(10,211,651)






Franklin K2 Alternative Strategies Fund



USD

Forward foreign exchange contracts used for share class hedging:CAD 7,148,335 USD 5,450,060 17-Jan-17 (125,045)CHF 22,081,365 USD 21,840,931 17-Jan-17 (134,830)CZK 120,434,872 USD 4,746,993 17-Jan-17 (51,826)EUR 408,273,691 USD 434,080,495 17-Jan-17 (3,938,791)GBP 6,090,002 USD 7,736,786 17-Jan-17 (228,099)HUF 93,280,334 USD 315,417 17-Jan-17 2,261JPY 28,535,071 USD 247,686 17-Jan-17 (3,299)NOK 2,105,552 USD 249,371 17-Jan-17 (5,496)PLN 35,163,408 USD 8,395,498 17-Jan-17 5,035SEK 48,360,840 USD 5,287,406 17-Jan-17 26,491SGD 5,034,031 USD 3,527,741 17-Jan-17 (51,961)USD 2,597,999 EUR 2,495,664 17-Jan-17 (31,338)USD 100,266 GBP 80,609 17-Jan-17 879USD 1,019,077 PLN 4,309,183 17-Jan-17 (10,386)

(4,546,405)

Forward foreign exchange contracts used for efficient portfolio management:BRL 3,000,000 USD 907,167 05-Jan-17 14,028USD 891,530 BRL 3,000,000 05-Jan-17 (29,664)USD 905,571 MXN 17,500,000 09-Jan-17 62,133HUF 385,700,000 USD 1,315,036 10-Jan-17 (1,756)USD 1,329,751 EUR 1,240,000 10-Jan-17 23,783USD 617,400 GBP 490,000 12-Jan-17 13,333CHF 63,000 USD 61,454 13-Jan-17 455USD 3,252,836 CHF 3,310,000 13-Jan-17 160USD 4,164,835 EUR 3,962,000 13-Jan-17 (8,559)USD 5,864,598 GBP 4,679,000 13-Jan-17 96,220SEK 12,525,000 USD 1,365,287 17-Jan-17 10,961USD 73,473 BRL 250,000 17-Jan-17 (3,010)USD 167,646 EUR 157,000 17-Jan-17 2,237USD 1,318,353 KRW 1,543,000,000 17-Jan-17 40,823USD 1,372,147 NZD 1,920,000 17-Jan-17 39,014SAR 11,005,650 USD 2,919,271 19-Jan-17 13,886USD 2,866,055 SAR 11,005,650 19-Jan-17 (67,102)NOK 11,300,000 USD 1,293,875 27-Jan-17 15,033USD 2,066,488 CAD 2,800,000 27-Jan-17 (19,582)USD 11,193 MXN 233,017 27-Jan-17 (5)MXN 32,600,000 USD 1,561,437 30-Jan-17 4,473NOK 18,000,000 USD 2,068,395 30-Jan-17 16,633USD 1,704,600 CAD 2,300,000 30-Jan-17 (9,022)USD 2,699,141 EUR 2,575,000 30-Jan-17 (15,514)USD 1,332,495 KRW 1,577,909,413 31-Jan-17 26,061USD 248,212 GBP 200,000 09-Feb-17 1,483USD 838,737 IDR 11,557,800,000 23-Feb-17 (12,437)CAD 409,713 USD 306,729 28-Feb-17 (1,376)EUR 1,711,816 CZK 46,169,382 28-Feb-17 3,576EUR 33,526 USD 35,804 28-Feb-17 (416)GBP 207,283 USD 259,731 28-Feb-17 (3,921)SEK 454,869 USD 49,366 28-Feb-17 728USD 4,055,955 CAD 5,325,227 28-Feb-17 87,138USD 1,915,880 EUR 1,802,721 28-Feb-17 13,000USD 1,365,281 GBP 1,077,341 28-Feb-17 35,726USD 252,788 JPY 29,089,412 28-Feb-17 3,206USD 939,281 SEK 8,605,448 28-Feb-17 (8,435)AUD 24,197,000 USD 18,139,578 15-Mar-17 (708,173)CAD 3,587,000 USD 2,730,955 15-Mar-17 (57,125)CHF 2,713,552 USD 2,664,409 15-Mar-17 12,355EUR 4,223,105 USD 4,464,639 15-Mar-17 (3,258)GBP 1,326,000 USD 1,666,282 15-Mar-17 (29,218)HKD 4,200,000 USD 541,530 15-Mar-17 243JPY 13,631,000 USD 115,795 15-Mar-17 1,248MXN 2,821,000 USD 135,686 15-Mar-17 (892)NZD 13,241,000 USD 9,518,626 15-Mar-17 (339,714)RUB 93,015,305 USD 1,500,489 15-Mar-17 (6,578)USD 12,092,781 AUD 16,757,000 15-Mar-17 21,117USD 22,206,472 CAD 29,353,000 15-Mar-17 326,086USD 12,379,498 CHF 12,485,545 15-Mar-17 63,219USD 2,705,845 CNH 18,985,560 15-Mar-17 34,838USD 21,208,672 EUR 19,989,882 15-Mar-17 90,922USD 19,992,819 GBP 15,796,000 15-Mar-17 491,265USD 8,638,554 JPY 1,002,173,000 15-Mar-17 33,347USD 6,427,800 MXN 131,521,000 15-Mar-17 143,411USD 167,922 NZD 244,000 15-Mar-17 (1,223)USD 1,659,247 TRY 5,879,508 15-Mar-17 17,390USD 700,627 ZAR 9,729,769 15-Mar-17 1,599






Franklin K2 Alternative Strategies Fund (continued)Purchases Sales Maturity


USD

ZAR 9,729,768 USD 682,489 15-Mar-17 16,539EUR 475,000 USD 497,414 20-Mar-17 4,533GBP 131,000 USD 161,228 20-Mar-17 526USD 5,188,376 EUR 4,959,000 20-Mar-17 (51,958)USD 829,284 GBP 666,000 20-Mar-17 6,932USD 1,647,686 CAD 2,195,000 21-Mar-17 11,358USD 524,628 EUR 500,000 21-Mar-17 (3,769)USD 518,302 JPY 60,880,000 21-Mar-17 (4,627)GBP 84,000 USD 102,949 31-Mar-17 804USD 360,989 CHF 370,000 31-Mar-17 (4,365)USD 1,158,301 EUR 1,109,000 31-Mar-17 (14,371)USD 921,539 PLN 3,550,000 28-Apr-17 74,774USD 865,676 BRL 3,000,000 06-Jul-17 (12,424)CNY 13,900,000 USD 1,971,095 19-Sep-17 14,683USD 2,025,402 CNY 13,900,000 19-Sep-17 39,624CZK 45,784,223 EUR 1,711,816 29-Nov-17 (1,495)CZK 47,574,545 EUR 1,780,884 15-Dec-17 (2,648)

508,266

(4,038,139)


Bank of America (13,230)Deutsche Bank (468,713)JPMorgan Chase Bank (2,606,805)Morgan Stanley (949,391)

(4,038,139)

Franklin K2 Global Macro Opportunities Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 4,086,880 USD 4,346,520 17-Jan-17 (40,737)GBP 2,422,248 USD 3,078,484 17-Jan-17 (91,965)JPY 156,149,235 USD 1,355,652 17-Jan-17 (18,320)

(151,022)

Forward foreign exchange contracts used for efficient portfolio management:USD 225,990 KRW 267,565,795 31-Jan-17 4,459EUR 191,553 CZK 5,166,367 28-Feb-17 400AUD 539,000 USD 403,736 15-Mar-17 (15,444)EUR 88,000 USD 92,310 15-Mar-17 655GBP 135,000 USD 169,481 15-Mar-17 (2,812)JPY 11,081,000 USD 94,312 15-Mar-17 836NZD 646,000 USD 465,375 15-Mar-17 (17,555)RUB 10,581,190 USD 170,692 15-Mar-17 (748)USD 897,092 AUD 1,245,000 15-Mar-17 200USD 1,181,113 CAD 1,549,000 15-Mar-17 26,453USD 803,346 CHF 807,000 15-Mar-17 7,286USD 295,979 CNH 2,075,850 15-Mar-17 3,936USD 2,521,234 EUR 2,369,604 15-Mar-17 17,931USD 1,348,124 GBP 1,060,000 15-Mar-17 39,460USD 693,470 JPY 79,732,000 15-Mar-17 8,847USD 314,888 MXN 6,440,000 15-Mar-17 7,170USD 30,467 NZD 44,000 15-Mar-17 (35)USD 188,600 TRY 668,274 15-Mar-17 1,984USD 78,389 ZAR 1,088,599 15-Mar-17 179ZAR 1,088,599 USD 76,359 15-Mar-17 1,850CZK 5,123,268 EUR 191,553 29-Nov-17 (167)CZK 5,411,803 EUR 202,583 15-Dec-17 (301)

84,584

(66,438)


Bank of America 6,322Deutsche Bank (155,255)JPMorgan Chase Bank 233Morgan Stanley 82,262

(66,438)






Franklin K2 Long Short Credit Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 15,040,748 USD 15,963,898 17-Jan-17 (117,535)GBP 5,180,867 USD 6,587,541 17-Jan-17 (199,775)

(317,310)

Forward foreign exchange contracts used for efficient portfolio management:USD 62,882 EUR 60,000 31-Jan-17 (375)USD 488,184 GBP 390,000 31-Jan-17 7,154USD 148,559 KRW 176,025,000 31-Jan-17 2,819RUB 11,913,172 USD 192,179 15-Mar-17 (842)USD 541,060 CNH 3,794,725 15-Mar-17 7,195USD 868,043 EUR 828,264 15-Mar-17 (6,953)USD 212,607 TRY 753,368 15-Mar-17 2,228CZK 6,094,536 EUR 228,140 15-Dec-17 (339)

10,887

(306,423)


Bank of America 18,082Deutsche Bank (6,763)JPMorgan Chase Bank 6,779Morgan Stanley (324,521)

(306,423)

Franklin MENA Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 9,150,393 USD 9,726,034 17-Jan-17 (88,438)USD 528,954 EUR 497,189 17-Jan-17 5,293

(83,145)


Bank of America (8,724)Barclays Bank (2,245)Citibank (9,394)Credit Suisse International (9,161)Deutsche Bank (7,571)Goldman Sachs (10,368)HSBC Bank (6,602)JPMorgan Chase Bank (14,097)Morgan Stanley (7,754)The Bank of New York Mellon (844)UBS (6,385)

(83,145)

Franklin Natural Resources Fund



USD

Forward foreign exchange contracts used for share class hedging:CHF 423,875 USD 413,321 20-Jan-17 3,563EUR 4,070,723 USD 4,263,526 20-Jan-17 24,649PLN 152,600,590 USD 36,003,590 20-Jan-17 436,044USD 9,008 CHF 9,268 20-Jan-17 (107)USD 89,063 EUR 85,339 20-Jan-17 (834)USD 847,097 PLN 3,587,082 20-Jan-17 (9,465)

453,850






Franklin Natural Resources Fund (continued)Unrealisedprofit/(loss)

USD


Bank of America 121,261Barclays Bank 6,659BNP Paribas 21,315Citibank 46,344Credit Suisse International 35,907Deutsche Bank 10,483Goldman Sachs 26,620HSBC Bank 15,588JPMorgan Chase Bank 40,982Morgan Stanley 110,005The Bank of New York Mellon 694UBS 17,992

453,850

Franklin NextStep Balanced Growth Fund



USD

Forward foreign exchange contracts used for share class hedging:SGD 6,253,055 USD 4,404,234 10-Jan-17 (85,910)

Forward foreign exchange contracts used for efficient portfolio management:USD 5,626,323 EUR 5,278,095 13-Mar-17 52,231

(33,679)


Bank of America 46,761BNP Paribas (739)Citibank (4,810)Goldman Sachs (3,550)HSBC Bank (3,019)JPMorgan Chase Bank (32,705)Morgan Stanley (31,409)UBS (4,208)

(33,679)

Franklin NextStep Conservative Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 1,239,295 USD 1,297,661 20-Jan-17 7,833GBP 2,904,978 USD 3,618,782 20-Jan-17 (38,101)PLN 48,472,545 USD 11,434,345 20-Jan-17 140,461USD 1,835,707 GBP 1,483,878 20-Jan-17 6,676

116,869

Forward foreign exchange contracts used for efficient portfolio management:EUR 883,400 USD 923,162 13-Mar-17 9,779USD 2,407,026 EUR 2,252,736 13-Mar-17 27,956

37,735

154,604


Bank of America 45,844BNP Paribas 3,017Citibank 15,036Deutsche Bank 4,264Goldman Sachs (7,272)HSBC Bank 3,626JPMorgan Chase Bank 33,374Morgan Stanley 57,054UBS (339)

154,604






Franklin NextStep Dynamic Growth Fund



USD

Forward foreign exchange contracts used for share class hedging:SGD 2,341,233 USD 1,641,049 17-Jan-17 (24,298)

Forward foreign exchange contracts used for efficient portfolio management:USD 802,231 EUR 750,808 13-Mar-17 9,317

(14,981)


Bank of America 7,508BNP Paribas (525)Citibank (1,395)Credit Suisse International (217)Deutsche Bank (98)Goldman Sachs (2,492)HSBC Bank (587)JPMorgan Chase Bank (3,231)Morgan Stanley (12,571)UBS (1,373)

(14,981)

Franklin NextStep Growth Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 356,530 USD 373,206 20-Jan-17 2,369GBP 750,513 USD 935,094 20-Jan-17 (10,011)PLN 8,412,743 USD 1,984,353 20-Jan-17 24,534

16,892

Forward foreign exchange contracts used for efficient portfolio management:USD 303,685 EUR 284,219 13-Mar-17 3,527

20,419


Bank of America 7,584BNP Paribas 1,027Citibank 1,639Credit Suisse International 228Deutsche Bank 449Goldman Sachs 1,335JPMorgan Chase Bank 4,802Morgan Stanley 3,532UBS (177)

20,419

Franklin NextStep Moderate Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 1,307,966 USD 1,387,087 17-Jan-17 (9,480)GBP 1,933,455 USD 2,459,718 17-Jan-17 (76,746)PLN 50,433,674 USD 12,038,824 17-Jan-17 5,004

(81,222)


(67,724)






Franklin NextStep Moderate Fund (continued)Unrealisedprofit/(loss)

USD


Bank of America 13,270Barclays Bank (1,500)BNP Paribas (1,231)Citibank (3,613)Deutsche Bank (514)Goldman Sachs (24,038)HSBC Bank 106JPMorgan Chase Bank (25,474)Morgan Stanley (22,066)UBS (2,664)

(67,724)

Franklin NextStep Stable Growth Fund



USD

Forward foreign exchange contracts used for share class hedging:SGD 3,277,179 USD 2,308,807 10-Jan-17 (45,607)USD 38,983 SGD 55,542 10-Jan-17 626

(44,981)


(22,040)


Bank of America 17,326BNP Paribas (716)Citibank (3,820)Credit Suisse International (267)Goldman Sachs (3,945)JPMorgan Chase Bank (6,476)Morgan Stanley (23,908)UBS (234)

(22,040)

Franklin Real Return Fund



USD


Forward foreign exchange contracts used for efficient portfolio management:USD 104,146 EUR 93,619 18-May-17 4,929

14,548


Bank of America 299Barclays Bank 44BNP Paribas 923Citibank 1,247Credit Suisse International 838Deutsche Bank 1,230Goldman Sachs 1,426HSBC Bank 819JPMorgan Chase Bank 5,383Morgan Stanley 1,078UBS 1,261

14,548






Franklin Strategic Income Fund



USD

Forward foreign exchange contracts used for share class hedging:AUD 566,837 USD 416,522 20-Jan-17 (7,726)EUR 227,441,756 USD 238,247,473 20-Jan-17 1,343,789SGD 324,408 USD 225,117 20-Jan-17 (1,100)

1,334,963

Forward foreign exchange contracts used for efficient portfolio management:EUR 3,000,000 USD 3,299,400 18-May-17 (119,996)GBP 400,000 USD 498,468 18-May-17 (3,991)INR 807,548,000 USD 11,641,631 18-May-17 51,155USD 18,886,772 AUD 25,177,300 18-May-17 779,291USD 5,778,765 CAD 7,600,000 18-May-17 109,212USD 57,644,234 EUR 51,862,502 18-May-17 2,680,289USD 2,444,851 GBP 1,999,862 18-May-17 (27,365)USD 30,005,073 JPY 3,207,105,972 18-May-17 2,372,608USD 1,764,200 CHF 1,714,450 28-Jul-17 57,467USD 1,649,375 GBP 1,250,000 15-Aug-18 82,386

5,981,056

7,316,019


Bank of America 83,761Barclays Bank 68,868BNP Paribas 90,217Citibank 323,900Credit Suisse International 103,972Deutsche Bank 2,602,766Goldman Sachs 197,220HSBC Bank 211,604JPMorgan Chase Bank 3,357,461Morgan Stanley 164,498The Bank of New York Mellon 9,269UBS 102,483

7,316,019

Franklin U.S. Equity Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 19,278,018 USD 20,195,746 20-Jan-17 112,068USD 8,869,867 EUR 8,466,107 20-Jan-17 (48,484)

63,584


Bank of America 6,548Barclays Bank 1,328BNP Paribas 9,654Citibank 19,864Credit Suisse International 18,298Goldman Sachs 17,540HSBC Bank 16,510JPMorgan Chase Bank 3,568Morgan Stanley (36,159)The Bank of New York Mellon 153UBS 6,280

63,584

Franklin U.S. Government Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 75,397,425 USD 81,249,001 10-Jan-17 (1,867,751)JPY 28,969,069 USD 254,517 10-Jan-17 (6,532)USD 5,021 EUR 4,802 10-Jan-17 (36)

(1,874,319)






Franklin U.S. Government Fund (continued)Unrealisedprofit/(loss)

USD


Bank of America (42,195)BNP Paribas (310,814)Citibank (302,623)Credit Suisse International (36,378)Deutsche Bank (149,400)Goldman Sachs (297,631)HSBC Bank (224,265)JPMorgan Chase Bank (213,110)Morgan Stanley (196,941)UBS (100,962)

(1,874,319)

Franklin U.S. Low Duration Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 117,644,980 USD 126,393,437 10-Jan-17 (2,532,371)

Forward foreign exchange contracts used for efficient portfolio management:EUR 1,890,528 USD 2,026,189 18-May-17 (22,604)INR 88,335,000 USD 1,271,007 18-May-17 8,028JPY 268,000,000 USD 2,374,894 18-May-17 (65,803)MXN 80,300,000 USD 3,849,169 18-May-17 (52,397)PHP 37,000,000 USD 751,117 18-May-17 (17,988)USD 5,244,587 AUD 6,938,833 18-May-17 254,187USD 647,644 CAD 850,000 18-May-17 13,549USD 44,360,781 EUR 39,599,031 18-May-17 2,393,681USD 11,001,735 JPY 1,095,775,476 18-May-17 1,560,520

4,071,173

1,538,802


Bank of America (579,953)BNP Paribas (190,098)Citibank 219,857Deutsche Bank 2,600,878Goldman Sachs (330,665)HSBC Bank 47,801JPMorgan Chase Bank 429,782Morgan Stanley (522,963)UBS (135,837)

1,538,802

Franklin U.S. Opportunities Fund



USD

Forward foreign exchange contracts used for share class hedging:CHF 4,375,856 USD 4,267,668 20-Jan-17 36,043CNH 3,530,564 USD 504,939 20-Jan-17 (2,656)EUR 122,711,851 USD 128,521,966 20-Jan-17 744,920NOK 23,081,611 USD 2,654,637 20-Jan-17 17,707PLN 63,697,647 USD 15,039,324 20-Jan-17 171,094SEK 20,722,630 USD 2,214,618 20-Jan-17 63,595SGD 22,100,930 USD 15,329,560 20-Jan-17 (68,017)USD 98,941 CHF 101,505 20-Jan-17 (890)USD 6,888,248 EUR 6,583,418 20-Jan-17 (46,844)USD 437,881 PLN 1,855,283 20-Jan-17 (5,144)

909,808






Franklin U.S. Opportunities Fund (continued)Unrealisedprofit/(loss)

USD


Bank of America 62,806Barclays Bank 35,658BNP Paribas 108,156Citibank 127,018Credit Suisse International 30,643Deutsche Bank (3,801)Goldman Sachs 88,690HSBC Bank 72,711JPMorgan Chase Bank 135,116Morgan Stanley 115,501The Bank of New York Mellon 31,540UBS 105,770

909,808

Franklin U.S. Total Return Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 355,468 USD 372,286 20-Jan-17 2,168

Forward foreign exchange contracts used for efficient portfolio management:EUR 820,492 USD 877,780 18-May-17 (8,221)INR 26,385,000 USD 380,266 18-May-17 1,773JPY 107,000,000 USD 936,133 18-May-17 (14,220)MXN 21,295,000 USD 1,020,239 18-May-17 (13,362)PHP 7,155,000 USD 145,220 18-May-17 (3,449)USD 1,655,182 AUD 2,195,669 18-May-17 76,059USD 259,617 CAD 345,000 18-May-17 2,249USD 8,496,480 EUR 7,641,099 18-May-17 398,438USD 3,907,131 JPY 390,942,141 18-May-17 538,768USD 308,298 KRW 360,000,000 18-May-17 10,130USD 145,181 MXN 2,825,000 18-May-17 11,608USD 312,633 SGD 440,000 18-May-17 8,925

1,008,698

1,010,866


Barclays Bank 8,612Citibank 6,792Deutsche Bank 658,831Goldman Sachs 509HSBC Bank 16,055JPMorgan Chase Bank 319,655Morgan Stanley 412

1,010,866

Franklin Mutual Beacon Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 9,960,463 USD 10,587,402 17-Jan-17 (96,605)USD 79,880 EUR 76,650 17-Jan-17 (851)

(97,456)






Franklin Mutual Beacon Fund (continued)Unrealisedprofit/(loss)

USD


Bank of America (5,497)Barclays Bank (3,212)BNP Paribas (3,139)Citibank (5,013)Credit Suisse International (6,131)Deutsche Bank (3,990)Goldman Sachs (5,569)HSBC Bank (9,627)JPMorgan Chase Bank (14,649)Morgan Stanley (31,528)The Bank of New York Mellon (3,966)UBS (5,135)

(97,456)

Franklin Mutual European Fund



EUR

Forward foreign exchange contracts used for share class hedging:CNH 3,345,434 EUR 456,855 20-Jan-17 (5,047)CZK 396,625,080 EUR 14,711,831 20-Jan-17 (29,517)USD 79,804,725 EUR 76,194,498 20-Jan-17 (436,660)

(471,224)


Bank of America (45,663)Barclays Bank (32,998)BNP Paribas (53,966)Citibank (67,299)Credit Suisse International (14,221)Goldman Sachs (48,082)HSBC Bank (40,925)JPMorgan Chase Bank (61,456)Morgan Stanley (80,243)The Bank of New York Mellon (4,981)UBS (21,390)

(471,224)

Franklin Mutual Global Discovery Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 13,634,356 GBP 11,641,300 25-Jan-17 15,468EUR 87,461,446 USD 91,670,500 25-Jan-17 488,372GBP 236,900 EUR 277,999 25-Jan-17 (884)USD 2,663,600 EUR 2,547,467 25-Jan-17 (20,688)

482,268


Bank of America 482,227UBS 41

482,268

Templeton Africa Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 16,843,899 USD 18,136,408 10-Jan-17 (402,515)USD 468,536 EUR 450,759 10-Jan-17 (6,041)

(408,556)






Templeton Africa Fund (continued)Unrealisedprofit/(loss)

USD



(408,556)

Templeton Asian Bond Fund



USD

Forward foreign exchange contracts used for share class hedging:AUD 1,405,962 USD 1,033,483 20-Jan-17 (19,524)CHF 38,387,890 USD 37,435,755 20-Jan-17 319,231EUR 78,069,780 USD 81,779,561 20-Jan-17 460,559SGD 3,443,740 USD 2,388,448 20-Jan-17 (10,414)USD 476,453 AUD 657,392 20-Jan-17 2,351USD 26,599,951 EUR 25,412,804 20-Jan-17 (170,356)USD 116,042 SGD 167,620 20-Jan-17 294

582,141

Forward foreign exchange contracts used for efficient portfolio management:MYR 3,690,700 USD 904,583 09-Jan-17 (82,418)USD 2,539,409 JPY 256,041,000 10-Jan-17 347,619MYR 14,010,000 USD 3,499,438 11-Jan-17 (378,893)USD 4,414,967 JPY 440,000,000 12-Jan-17 647,980USD 9,389,126 JPY 1,095,810,000 17-Jan-17 4,727MYR 4,770,000 USD 1,205,459 19-Jan-17 (143,571)USD 18,430,461 JPY 1,931,580,000 19-Jan-17 1,886,639MYR 4,452,000 USD 1,100,618 23-Jan-17 (109,788)USD 2,381,027 JPY 274,830,000 23-Jan-17 26,567MYR 84,090,830 USD 20,871,390 25-Jan-17 (2,158,757)MYR 120,131,000 USD 30,009,493 26-Jan-17 (3,278,668)USD 3,774,975 JPY 442,210,000 27-Jan-17 (14,330)MYR 1,866,000 USD 448,827 31-Jan-17 (33,727)USD 3,711,845 JPY 434,657,000 31-Jan-17 (13,462)USD 10,603,596 JPY 1,065,900,000 06-Feb-17 1,466,057MYR 22,942,148 USD 5,647,576 08-Feb-17 (545,352)USD 2,197,988 JPY 223,687,000 10-Feb-17 280,120MYR 1,666,000 USD 380,974 16-Feb-17 (10,563)AUD 80,000,000 USD 60,165,810 23-Feb-17 (2,517,128)USD 69,013,490 AUD 91,000,000 23-Feb-17 3,438,114USD 69,013,945 AUD 91,000,000 24-Feb-17 3,440,026USD 2,005,102 JPY 222,047,000 27-Feb-17 100,085USD 11,943,880 JPY 1,210,990,000 28-Feb-17 1,553,994USD 9,323,643 KRW 10,904,000,000 07-Mar-17 294,337USD 18,182,558 AUD 24,124,000 13-Mar-17 805,684MYR 81,713,697 USD 19,964,255 14-Mar-17 (1,818,694)USD 18,136,346 AUD 24,401,000 14-Mar-17 560,345MYR 32,041,000 USD 7,888,957 20-Mar-17 (776,374)KRW 8,323,000,000 USD 7,153,109 27-Mar-17 (261,440)USD 7,433,573 KRW 8,323,000,000 27-Mar-17 541,904KRW 7,100,000,000 USD 6,102,015 28-Mar-17 (223,039)MYR 211,049,400 USD 50,720,836 28-Mar-17 (3,893,465)USD 7,547,953 KRW 8,362,000,000 28-Mar-17 624,010MYR 4,510,000 USD 1,116,199 31-Mar-17 (115,702)USD 385,192 JPY 43,140,000 31-Mar-17 14,410USD 8,399,436 JPY 893,700,000 13-Apr-17 713,099USD 76,912,618 JPY 7,909,983,600 24-Apr-17 8,843,859USD 9,748,651 KRW 11,112,000,000 25-Apr-17 546,370USD 2,701,688 KRW 3,096,000,000 26-Apr-17 137,756USD 3,260,708 KRW 3,734,000,000 02-May-17 168,317USD 2,250,182 JPY 241,579,600 16-May-17 168,943USD 6,425,592 JPY 695,988,000 18-May-17 428,951MYR 2,742,080 USD 673,813 19-May-17 (67,232)USD 2,208,447 JPY 237,874,000 22-May-17 158,501






Templeton Asian Bond Fund (continued)Purchases Sales Maturity


USD

USD 10,875,767 KRW 12,770,000,000 22-May-17 298,855USD 3,567,446 JPY 392,091,000 25-May-17 187,972USD 7,108,598 KRW 8,359,000,000 25-May-17 185,037USD 8,633,290 KRW 10,088,000,000 02-Jun-17 277,271USD 990,466 JPY 103,265,000 16-Jun-17 99,409USD 18,686,825 KRW 21,815,000,000 20-Jun-17 615,385USD 6,957,063 JPY 701,592,000 30-Jun-17 898,740USD 32,166,934 JPY 3,256,500,000 03-Jul-17 4,042,080USD 6,080,242 JPY 631,460,000 31-Jul-17 618,238USD 1,135,075 JPY 112,100,000 18-Aug-17 164,473USD 8,322,832 JPY 820,609,000 22-Aug-17 1,216,142USD 2,255,286 JPY 222,597,000 24-Aug-17 327,325USD 2,259,402 JPY 223,212,000 28-Aug-17 325,690USD 4,472,124 JPY 441,166,000 30-Aug-17 649,831USD 3,686,862 JPY 371,267,000 01-Sep-17 469,824USD 2,363,597 JPY 242,566,519 09-Nov-17 252,825USD 8,619,867 JPY 883,798,000 14-Nov-17 926,703USD 2,468,585 JPY 264,815,000 21-Nov-17 162,408USD 2,562,339 JPY 279,154,000 27-Nov-17 130,337

22,604,356

23,186,497


Bank of America 194,807Barclays Bank 2,564,791BNP Paribas 84,763Citibank 10,942,583Credit Suisse International 73,787Deutsche Bank (1,998,785)Goldman Sachs 323,346HSBC Bank (4,708,377)JPMorgan Chase Bank 7,955,911Morgan Stanley 5,633,269Standard Chartered 1,986,268The Bank of New York Mellon 27,654UBS 106,480

23,186,497

Templeton Asian Growth Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 2,883,897 PKR 328,620,100 10-Jan-17 (108,479)PKR 21,247,100 EUR 189,039 10-Jan-17 4,298CHF 17,002,840 USD 16,833,358 17-Jan-17 (114,685)CNH 21,550,536 USD 3,094,454 17-Jan-17 (25,057)CZK 180,803,948 USD 7,135,395 17-Jan-17 (85,985)EUR 133,396,821 USD 141,849,668 17-Jan-17 (1,350,284)PLN 110,548,226 USD 26,381,192 17-Jan-17 18,306SGD 3,386,642 USD 2,374,034 17-Jan-17 (35,373)USD 532,617 CHF 545,582 17-Jan-17 (3,846)USD 136,126 CNH 951,220 17-Jan-17 645USD 150,311 CZK 3,903,600 17-Jan-17 (1,888)USD 3,864,613 EUR 3,695,277 17-Jan-17 (27,416)USD 1,281,950 PLN 5,425,383 17-Jan-17 (13,660)USD 104,882 SGD 151,824 17-Jan-17 39EUR 9,100,795 HKD 73,872,800 25-Jan-17 61,451EUR 4,498,086 IDR 63,447,348,500 25-Jan-17 54,987EUR 3,083,432 INR 219,965,700 25-Jan-17 20,135EUR 2,847,814 KRW 3,589,150,100 25-Jan-17 28,624EUR 6,155,083 THB 232,369,500 25-Jan-17 6,298EUR 2,490,261 USD 2,605,800 25-Jan-17 18,210HKD 1,608,000 EUR 198,898 25-Jan-17 (2,180)IDR 3,167,642,200 EUR 224,007 25-Jan-17 (2,152)INR 11,583,700 EUR 162,598 25-Jan-17 (1,292)THB 5,401,800 EUR 143,521 25-Jan-17 (606)USD 223,700 EUR 213,774 25-Jan-17 (1,555)

(1,561,465)






Templeton Asian Growth Fund (continued)Unrealisedprofit/(loss)

USD



(1,561,465)

Templeton BRIC Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 9,657,968 USD 10,406,389 10-Jan-17 (238,116)USD 224,045 EUR 214,344 10-Jan-17 (1,624)

(239,740)


Bank of America (23,519)Barclays Bank (15,958)Citibank (7,830)Credit Suisse International (987)Deutsche Bank (19,098)Goldman Sachs (4,093)HSBC Bank (28,771)JPMorgan Chase Bank (35,895)Morgan Stanley (73,390)The Bank of New York Mellon (1,594)UBS (28,605)

(239,740)

Templeton Emerging Markets Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 12,570,245 USD 13,286,886 17-Jan-17 (47,353)USD 1,120,649 EUR 1,072,108 17-Jan-17 (8,542)

(55,895)


Barclays Bank (878)Citibank (875)Credit Suisse International (2,864)Deutsche Bank (3,960)Goldman Sachs (3,292)HSBC Bank (22,845)JPMorgan Chase Bank (4,957)Morgan Stanley (9,163)The Bank of New York Mellon (1,318)UBS (5,743)

(55,895)






Templeton Emerging Markets Balanced Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 9,123,890 USD 9,556,341 20-Jan-17 54,926USD 45,011 EUR 43,011 20-Jan-17 (298)

54,628

Forward foreign exchange contracts used for efficient portfolio management:MYR 659,350 USD 159,978 05-Jan-17 (13,058)CLP 52,900,000 USD 79,687 09-Jan-17 (802)USD 23,754 EUR 21,100 09-Jan-17 1,540USD 108,051 EUR 100,000 17-Jan-17 2,727USD 44,283 EUR 40,000 18-Jan-17 2,151CLP 36,073,000 USD 53,344 20-Jan-17 377USD 179,727 EUR 163,000 20-Jan-17 8,020USD 349,182 EUR 317,000 23-Jan-17 15,193CLP 36,969,500 USD 54,924 24-Jan-17 105INR 5,212,900 USD 76,985 25-Jan-17 (464)CLP 45,562,500 USD 69,045 27-Jan-17 (1,249)USD 515,585 EUR 470,000 30-Jan-17 20,212PHP 10,554,200 USD 213,289 31-Jan-17 (1,543)USD 144,748 EUR 132,000 31-Jan-17 5,616USD 72,836 EUR 65,791 03-Feb-17 3,482MXN 25,844,100 USD 1,363,985 07-Feb-17 (124,798)USD 383,792 EUR 340,000 09-Feb-17 25,287INR 7,462,500 USD 110,490 10-Feb-17 (1,124)USD 833,618 EUR 759,250 14-Feb-17 32,878CLP 52,900,000 USD 79,849 15-Feb-17 (1,243)USD 13,423 EUR 12,460 17-Feb-17 281INR 5,212,900 USD 75,957 21-Feb-17 355USD 558,161 EUR 519,900 22-Feb-17 9,668USD 931,214 EUR 835,000 23-Feb-17 50,254CLP 45,562,500 USD 67,211 27-Feb-17 438USD 147,037 EUR 137,914 27-Feb-17 1,508USD 22,341 EUR 20,000 01-Mar-17 1,235USD 188,034 ZAR 2,676,998 01-Mar-17 (4,563)GHS 54,048 USD 11,782 13-Mar-17 191USD 295,452 AUD 392,000 13-Mar-17 13,088USD 294,331 AUD 396,000 14-Mar-17 9,094USD 13,298 EUR 12,460 14-Mar-17 138USD 120,128 EUR 112,300 16-Mar-17 1,509USD 735,202 AUD 963,000 29-Mar-17 41,792MYR 580,250 USD 145,288 03-Apr-17 (16,588)MYR 48,320 USD 12,303 05-Apr-17 (1,587)MXN 10,163,000 USD 556,541 07-Apr-17 (72,911)MYR 442,400 USD 112,043 07-Apr-17 (13,941)MYR 278,000 USD 71,007 11-Apr-17 (9,375)MYR 1,300,000 USD 317,654 18-May-17 (30,062)MXN 3,404,900 USD 159,940 30-Jun-17 (24)PHP 3,581,720 USD 75,243 30-Jun-17 (4,550)PHP 3,552,000 USD 74,749 03-Jul-17 (4,655)

(55,398)

(770)


Bank of America 47,850Barclays Bank 23,779BNP Paribas 4,394Citibank (180,955)Credit Suisse International 3,353Deutsche Bank 93,672Goldman Sachs 40,888HSBC Bank (30,402)JPMorgan Chase Bank (17,019)Morgan Stanley 6,893The Bank of New York Mellon 1,869UBS 4,908

(770)






Templeton Emerging Markets Bond Fund



USD

Forward foreign exchange contracts used for share class hedging:AUD 80,703,893 USD 60,329,140 17-Jan-17 (2,121,840)CHF 37,966,825 USD 37,583,464 17-Jan-17 (251,182)EUR 208,788,987 USD 222,013,248 17-Jan-17 (2,107,521)GBP 54,065,106 USD 68,766,049 17-Jan-17 (2,131,124)NOK 6,313,791 USD 747,789 17-Jan-17 (16,812)PLN 19,913,193 USD 4,748,478 17-Jan-17 6,898SEK 31,407,843 USD 3,431,629 17-Jan-17 20,581SGD 7,995,777 USD 5,604,793 17-Jan-17 (83,265)

(6,684,265)

Forward foreign exchange contracts used for efficient portfolio management:MYR 88,704,100 USD 21,522,286 05-Jan-17 (1,756,677)CLP 5,592,468,000 USD 8,424,295 09-Jan-17 (84,816)MYR 16,305,000 USD 3,996,324 09-Jan-17 (364,111)USD 34,328,967 EUR 30,494,200 09-Jan-17 2,225,294USD 26,489,173 JPY 2,875,400,000 10-Jan-17 1,874,857CLP 2,681,100,000 USD 3,991,811 11-Jan-17 5,279MYR 160,000 USD 39,965 11-Jan-17 (4,327)CLP 2,102,817,500 USD 3,126,634 12-Jan-17 7,953USD 19,423,285 EUR 17,580,380 13-Jan-17 910,939CLP 2,102,817,500 USD 3,123,615 17-Jan-17 9,088USD 44,441,376 EUR 41,130,000 17-Jan-17 1,121,455USD 52,084,413 JPY 6,078,800,000 17-Jan-17 26,222CLP 9,505,537,000 USD 14,097,639 18-Jan-17 61,673INR 626,076,000 USD 9,250,108 18-Jan-17 (53,702)MYR 17,125,000 USD 3,808,518 18-Jan-17 4,070USD 37,440,339 EUR 33,819,000 18-Jan-17 1,818,720MYR 26,557,000 USD 6,711,398 19-Jan-17 (799,332)USD 44,189,254 EUR 40,014,900 19-Jan-17 2,039,158USD 89,642,491 JPY 9,394,980,000 19-Jan-17 9,175,270CLP 2,047,584,000 USD 3,027,940 20-Jan-17 21,379INR 1,636,043,000 USD 24,199,946 20-Jan-17 (172,774)USD 62,087,373 EUR 56,309,000 20-Jan-17 2,770,454CLP 16,829,400,000 USD 25,008,396 23-Jan-17 45,383MYR 20,756,000 USD 5,131,939 23-Jan-17 (512,514)USD 35,439,681 EUR 32,156,000 23-Jan-17 1,560,365USD 13,208,057 JPY 1,524,540,000 23-Jan-17 147,375CLP 4,148,239,500 USD 6,169,007 24-Jan-17 5,699INR 362,166,000 USD 5,348,442 25-Jan-17 (32,160)MYR 27,237,991 USD 6,760,485 25-Jan-17 (699,246)MYR 13,447,000 USD 3,359,147 26-Jan-17 (367,001)USD 28,404,882 EUR 25,926,325 26-Jan-17 1,084,585CLP 5,010,006,000 USD 7,592,068 27-Jan-17 (137,298)INR 1,656,436,666 USD 24,468,797 27-Jan-17 (158,403)MYR 314,000 USD 78,435 27-Jan-17 (8,571)USD 20,284,762 EUR 18,504,027 27-Jan-17 784,760CLP 3,150,284,000 USD 4,685,482 30-Jan-17 628PHP 1,496,250,000 USD 30,218,726 30-Jan-17 (195,751)USD 59,299,126 EUR 54,056,213 30-Jan-17 2,324,686CLP 4,725,426,000 USD 7,084,447 31-Jan-17 (55,748)INR 2,151,110,000 USD 31,853,148 31-Jan-17 (295,288)MYR 70,114,000 USD 15,999,459 31-Jan-17 (402,280)PHP 3,081,456,480 USD 62,273,033 31-Jan-17 (450,605)USD 18,839,849 EUR 17,179,894 31-Jan-17 731,742INR 395,776,000 USD 5,865,086 03-Feb-17 (60,642)CLP 10,214,777,000 USD 15,532,084 06-Feb-17 (344,489)INR 399,632,500 USD 5,928,017 07-Feb-17 (69,419)CLP 3,957,881,200 USD 6,028,760 08-Feb-17 (144,864)INR 428,759,833 USD 6,357,177 08-Feb-17 (72,219)MYR 9,550,000 USD 2,350,885 08-Feb-17 (227,011)USD 5,931,013 EUR 5,317,387 08-Feb-17 324,460USD 103,282,687 JPY 11,940,160,000 08-Feb-17 916,757CLP 3,237,480,000 USD 4,906,016 09-Feb-17 (93,409)USD 103,550,716 JPY 11,956,430,000 09-Feb-17 1,041,467INR 267,126,250 USD 3,955,082 10-Feb-17 (40,227)MYR 9,550,000 USD 2,362,400 13-Feb-17 (238,880)USD 135,233,551 EUR 123,143,033 14-Feb-17 5,361,289CLP 4,374,488,000 USD 6,603,001 15-Feb-17 (102,798)INR 127,788,000 USD 1,899,442 16-Feb-17 (27,803)MXN 1,899,503,821 USD 95,462,047 16-Feb-17 (4,473,955)MYR 8,284,000 USD 1,894,352 16-Feb-17 (52,521)USD 44,392,546 EUR 41,568,000 16-Feb-17 549,372CLP 2,576,042,500 USD 3,816,359 17-Feb-17 10,961USD 10,016,003 EUR 9,293,380 17-Feb-17 213,551CLP 10,336,692,315 USD 15,188,988 21-Feb-17 164,523






Templeton Emerging Markets Bond Fund (continued)Purchases Sales Maturity


USD

INR 487,121,000 USD 7,097,785 21-Feb-17 33,145MXN 1,946,000,000 USD 103,360,546 21-Feb-17 (10,196,561)USD 23,583,148 EUR 21,922,000 21-Feb-17 456,442CLP 4,476,747,685 USD 6,588,297 22-Feb-17 60,756USD 170,156,063 EUR 156,027,600 22-Feb-17 5,547,208USD 21,634,867 EUR 20,100,324 23-Feb-17 428,173CLP 7,076,501,000 USD 10,429,889 27-Feb-17 76,928INR 395,776,000 USD 5,747,128 27-Feb-17 43,049MYR 45,530,000 USD 10,248,734 27-Feb-17 (129,494)USD 36,407,857 EUR 34,128,658 27-Feb-17 394,654CLP 4,805,080,000 USD 7,026,751 28-Feb-17 107,105USD 2,134,138 EUR 1,913,888 28-Feb-17 114,483USD 40,801,245 ZAR 580,879,172 01-Mar-17 (990,181)USD 12,811,794 EUR 12,032,000 02-Mar-17 113,358CLP 1,591,690,000 USD 2,342,443 06-Mar-17 19,728USD 322,663 EUR 302,389 06-Mar-17 3,449USD 324,895 EUR 302,389 07-Mar-17 5,661CLP 1,953,825,000 USD 2,931,470 13-Mar-17 (33,197)GHS 48,691,610 USD 10,613,975 13-Mar-17 171,753USD 66,020,685 AUD 87,594,000 13-Mar-17 2,925,433INR 146,040,000 USD 2,136,650 14-Mar-17 (4,534)USD 65,850,821 AUD 88,597,000 14-Mar-17 2,034,550USD 14,124,724 EUR 13,234,939 14-Mar-17 146,733USD 13,156,363 EUR 12,299,000 16-Mar-17 165,310INR 140,242,000 USD 2,053,624 17-Mar-17 (7,023)USD 18,532,472 JPY 1,885,123,056 21-Mar-17 2,339,287MYR 252,000,000 USD 61,606,161 24-Mar-17 (5,679,487)USD 17,152,855 JPY 1,888,117,650 24-Mar-17 931,158USD 153,320,610 AUD 200,826,000 29-Mar-17 8,715,461MYR 210,000 USD 51,974 31-Mar-17 (5,387)MYR 155,092,000 USD 38,833,191 03-Apr-17 (4,433,619)MYR 200,000,000 USD 50,793,651 04-Apr-17 (6,436,005)MYR 12,541,300 USD 3,193,202 05-Apr-17 (411,850)MYR 117,400,000 USD 29,732,810 07-Apr-17 (3,699,395)USD 14,073,505 JPY 1,437,700,000 07-Apr-17 1,712,248MYR 13,098,000 USD 3,345,508 11-Apr-17 (441,703)USD 27,814,544 JPY 2,860,100,000 11-Apr-17 3,218,545USD 176,355,132 JPY 18,710,200,000 13-Apr-17 15,436,579MYR 9,535,724 USD 2,421,156 18-Apr-17 (307,958)MYR 13,772,720 USD 3,384,376 19-May-17 (337,689)MXN 1,314,359,940 USD 69,033,685 30-May-17 (7,004,041)MXN 866,230,700 USD 40,689,790 30-Jun-17 (6,128)PHP 1,045,735,760 USD 21,968,316 30-Jun-17 (1,328,477)PHP 1,029,890,000 USD 21,673,225 03-Jul-17 (1,349,680)MYR 333,795,360 USD 82,920,224 05-Jul-17 (9,275,059)MXN 223,486,000 USD 10,542,290 13-Sep-17 (169,414)USD 18,716,489 JPY 1,892,096,627 19-Sep-17 2,305,177MXN 801,030,873 USD 39,602,060 03-Oct-17 (2,539,758)USD 14,203,013 JPY 1,437,700,000 10-Oct-17 1,716,799BRL 164,000,000 USD 43,617,021 21-Nov-17 2,964,036MXN 897,222,015 USD 42,262,984 15-Dec-17 (1,224,138)MXN 27,485,262 USD 1,260,000 27-Dec-17 (5,182)

21,011,821

14,327,556


Bank of America 8,009,268Barclays Bank 13,613,339BNP Paribas (267,514)Citibank (26,638,840)Credit Suisse International (408,311)Deutsche Bank 5,366,245Goldman Sachs 3,781,912HSBC Bank 3,836,476JPMorgan Chase Bank 2,808,830Morgan Stanley (1,389,454)Standard Chartered 6,113,692The Bank of New York Mellon (39,646)UBS (458,441)

14,327,556






Templeton Frontier Markets Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 68,300,509 USD 72,626,963 17-Jan-17 (689,868)PLN 28,336,486 USD 6,763,623 17-Jan-17 3,279USD 157,089 PLN 668,964 17-Jan-17 (2,663)

(689,252)


Bank of America (110,342)Barclays Bank (18,908)BNP Paribas 161Citibank (37,050)Credit Suisse International (111,837)Deutsche Bank (96,506)Goldman Sachs (122,105)HSBC Bank (32,844)JPMorgan Chase Bank (43,629)Morgan Stanley (66,710)The Bank of New York Mellon (37,748)UBS (11,734)

(689,252)

Templeton Global (Euro) Fund



EUR

Forward foreign exchange contracts used for share class hedging:EUR 437,679 GBP 373,700 25-Jan-17 471EUR 283,518 HKD 2,302,900 25-Jan-17 1,629EUR 380,474 JPY 46,799,500 25-Jan-17 (66)EUR 1,814,660 USD 1,902,000 25-Jan-17 9,608HKD 60,800 EUR 7,497 25-Jan-17 (54)JPY 2,391,400 EUR 19,558 25-Jan-17 (113)

11,475

The above contracts were opened with the following counterparty:

Bank of America 11,475

Templeton Global Balanced Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 19,943,874 USD 21,201,683 17-Jan-17 (195,921)GBP 342,291 USD 435,430 17-Jan-17 (13,558)

(209,479)

Forward foreign exchange contracts used for efficient portfolio management:CLP 399,480,000 USD 601,762 09-Jan-17 (6,059)EUR 5,295,000 USD 5,702,330 09-Jan-17 (127,862)USD 5,960,958 EUR 5,295,000 09-Jan-17 386,490EUR 98,456 USD 106,044 11-Jan-17 (2,380)USD 110,613 EUR 98,456 11-Jan-17 6,949CLP 58,613,500 USD 87,151 12-Jan-17 222CLP 58,613,500 USD 87,067 17-Jan-17 253CLP 1,142,801,000 USD 1,693,910 18-Jan-17 8,390INR 11,162,000 USD 164,916 18-Jan-17 (957)CLP 146,812,000 USD 217,104 20-Jan-17 1,533INR 95,044,000 USD 1,406,355 20-Jan-17 (10,524)CLP 209,498,000 USD 311,419 24-Jan-17 421INR 14,640,000 USD 216,123 25-Jan-17 (1,220)EUR 385,000 USD 428,782 26-Jan-17 (23,082)USD 421,806 EUR 385,000 26-Jan-17 16,106CLP 295,155,250 USD 447,273 27-Jan-17 (8,089)INR 139,871,000 USD 2,067,123 27-Jan-17 (14,331)CLP 478,317,000 USD 711,411 30-Jan-17 95EUR 271,000 USD 301,867 30-Jan-17 (16,237)USD 297,284 EUR 271,000 30-Jan-17 11,654CLP 717,475,000 USD 1,075,652 31-Jan-17 (8,464)INR 23,797,000 USD 352,381 31-Jan-17 (3,267)INR 11,162,000 USD 165,412 03-Feb-17 (1,710)






Templeton Global Balanced Fund (continued)Purchases Sales Maturity


USD

CLP 661,333,500 USD 1,005,459 06-Feb-17 (22,171)INR 17,718,000 USD 262,823 07-Feb-17 (3,078)CLP 597,312,000 USD 909,843 08-Feb-17 (21,862)EUR 701,000 USD 767,157 08-Feb-17 (28,036)INR 28,657,000 USD 424,894 08-Feb-17 (4,827)USD 794,321 EUR 701,000 08-Feb-17 55,199CLP 77,381,000 USD 117,262 09-Feb-17 (2,233)INR 7,295,000 USD 108,010 10-Feb-17 (1,099)INR 127,055,000 USD 1,885,442 16-Feb-17 (24,539)CLP 379,628,500 USD 562,413 17-Feb-17 1,615CLP 114,321,552 USD 167,984 21-Feb-17 1,822INR 62,439,000 USD 909,792 21-Feb-17 4,249CLP 115,693,448 USD 170,263 22-Feb-17 1,570CLP 855,380,250 USD 1,259,378 27-Feb-17 10,646INR 34,579,000 USD 502,127 27-Feb-17 3,761CLP 1,099,651,000 USD 1,608,113 28-Feb-17 24,482CLP 222,270,000 USD 327,108 06-Mar-17 2,755USD 5,205,643 KRW 6,088,000,000 07-Mar-17 164,336CLP 267,353,500 USD 401,131 13-Mar-17 (4,543)INR 47,538,000 USD 695,508 14-Mar-17 (1,476)INR 12,768,000 USD 186,967 17-Mar-17 (639)MYR 10,640,000 USD 2,577,270 20-Mar-17 (215,362)USD 4,318,314 KRW 4,835,000,000 27-Mar-17 314,803USD 4,385,070 KRW 4,858,000,000 28-Mar-17 362,526USD 5,663,026 KRW 6,455,000,000 25-Apr-17 317,388USD 1,569,876 KRW 1,799,000,000 26-Apr-17 80,046USD 1,893,202 KRW 2,168,000,000 02-May-17 97,727USD 4,128,752 KRW 4,855,000,000 25-May-17 107,471USD 5,011,553 KRW 5,856,000,000 02-Jun-17 160,953

1,589,415

1,379,936


Bank of America (15,528)Barclays Bank 17,793BNP Paribas (2,164)Citibank (4,747)Credit Suisse International (14,812)Deutsche Bank (78,393)Goldman Sachs 148,116HSBC Bank 1,519,601JPMorgan Chase Bank (108,916)Morgan Stanley (50,649)The Bank of New York Mellon (13,032)UBS (17,333)

1,379,936

Templeton Global Bond Fund



USD

Forward foreign exchange contracts used for share class hedging:CHF 207,412,429 USD 205,953,436 10-Jan-17 (2,116,854)CZK 2,098,315,715 USD 83,850,430 10-Jan-17 (2,069,565)EUR 1,174,591,626 USD 1,265,106,736 10-Jan-17 (28,452,421)JPY 5,731,385,763 USD 50,367,182 10-Jan-17 (1,304,742)PLN 177,781,346 USD 42,916,900 10-Jan-17 (455,814)SGD 234,473,684 USD 165,174,488 10-Jan-17 (3,248,317)AUD 30,537,390 USD 22,845,419 17-Jan-17 (820,471)CHF 99,180,266 USD 98,171,953 17-Jan-17 (649,300)EUR 837,506,140 USD 890,450,119 17-Jan-17 (8,351,886)GBP 54,921,745 USD 69,818,366 17-Jan-17 (2,127,634)NOK 1,863,557,323 USD 220,723,810 17-Jan-17 (4,971,081)SEK 234,575,244 USD 25,654,516 17-Jan-17 128,953USD 149,417 GBP 118,870 17-Jan-17 2,911CAD 10,033,078 USD 7,514,739 20-Jan-17 (40,961)CHF 14,963,474 USD 14,589,529 20-Jan-17 127,243CNH 14,704,945 USD 2,103,155 20-Jan-17 (11,130)EUR 2,038,615,612 USD 2,135,495,206 20-Jan-17 12,019,374GBP 210,419,010 USD 262,100,917 20-Jan-17 (2,738,105)

(45,079,800)






Templeton Global Bond Fund (continued)Purchases Sales Maturity


USD

Forward foreign exchange contracts used for efficient portfolio management:MYR 81,346,900 USD 19,737,207 05-Jan-17 (1,610,976)PHP 2,484,113,800 USD 52,341,209 05-Jan-17 (2,304,272)USD 19,226,400 MYR 81,346,900 05-Jan-17 1,100,169CLP 39,151,073,000 USD 58,975,782 09-Jan-17 (593,772)MYR 67,297,600 USD 16,494,510 09-Jan-17 (1,502,841)USD 298,965,078 EUR 265,572,900 09-Jan-17 19,375,327USD 85,664,661 JPY 9,298,900,000 10-Jan-17 6,063,196CLP 13,606,600,000 USD 20,258,468 11-Jan-17 26,789MYR 63,230,000 USD 15,793,681 11-Jan-17 (1,710,021)USD 550,404,641 EUR 494,853,907 11-Jan-17 29,375,096CLP 19,503,336,000 USD 28,999,087 12-Jan-17 73,761USD 79,372,065 EUR 70,904,000 12-Jan-17 4,713,435USD 13,867,009 JPY 1,382,000,000 12-Jan-17 2,035,247USD 232,979,941 EUR 210,445,012 13-Jan-17 11,378,874CLP 19,503,336,000 USD 28,971,087 17-Jan-17 84,292EUR 100,000,000 USD 107,152,800 17-Jan-17 (1,828,410)USD 187,740,893 EUR 173,366,000 17-Jan-17 5,144,211USD 77,501,655 JPY 9,045,260,000 17-Jan-17 39,019CLP 75,694,338,000 USD 112,322,585 18-Jan-17 430,609INR 7,133,944,000 USD 105,402,146 18-Jan-17 (611,922)MYR 46,185,000 USD 10,271,322 18-Jan-17 10,976MYR 135,852,401 USD 34,332,171 19-Jan-17 (4,088,983)USD 648,556,417 EUR 588,147,168 19-Jan-17 29,025,703USD 273,269,540 JPY 29,447,655,000 19-Jan-17 21,052,826USD 32,101,229 MYR 135,852,401 19-Jan-17 1,858,041CLP 25,583,647,000 USD 37,832,760 20-Jan-17 267,115INR 3,500,019,000 USD 51,789,372 20-Jan-17 (387,568)USD 63,699,402 EUR 57,771,000 20-Jan-17 2,842,386JPY 11,672,160,000 USD 117,196,245 23-Jan-17 (17,201,248)MYR 190,281,600 USD 47,425,250 23-Jan-17 (5,076,456)USD 100,318,606 EUR 90,850,448 23-Jan-17 4,599,270USD 155,473,168 JPY 17,933,397,600 23-Jan-17 1,838,362CLP 41,705,052,500 USD 62,005,902 24-Jan-17 72,586INR 564,065,000 USD 8,326,998 25-Jan-17 (47,016)MYR 261,836,984 USD 64,988,082 25-Jan-17 (6,721,808)MYR 84,084,000 USD 21,004,721 26-Jan-17 (2,294,857)CLP 30,308,188,750 USD 45,928,457 27-Jan-17 (830,587)INR 8,393,924,228 USD 124,023,445 27-Jan-17 (831,525)MYR 39,470,000 USD 9,859,366 27-Jan-17 (1,077,326)USD 236,536,320 EUR 216,678,760 27-Jan-17 8,194,876USD 81,782,359 JPY 9,580,190,000 27-Jan-17 (310,443)CLP 15,158,492,000 USD 22,545,537 30-Jan-17 3,024USD 436,581,197 JPY 51,080,000,000 30-Jan-17 (1,192,884)CLP 22,737,739,000 USD 34,088,840 31-Jan-17 (268,252)INR 3,858,617,000 USD 57,137,524 31-Jan-17 (529,681)MYR 302,310,000 USD 70,175,591 31-Jan-17 (2,925,351)USD 116,729,138 EUR 106,494,000 31-Jan-17 4,481,369USD 921,315,875 JPY 97,722,971,434 31-Jan-17 83,763,344USD 17,836,530 EUR 16,253,000 01-Feb-17 704,680INR 4,416,689,000 USD 65,451,823 03-Feb-17 (676,740)USD 28,507,269 EUR 25,736,110 03-Feb-17 1,377,263CLP 87,910,653,500 USD 133,672,799 06-Feb-17 (2,964,955)MYR 190,337,800 USD 46,728,620 06-Feb-17 (4,395,584)USD 92,354,448 JPY 9,283,700,000 06-Feb-17 12,768,955INR 6,511,439,500 USD 96,588,545 07-Feb-17 (1,131,088)USD 163,196,927 JPY 16,779,500,000 07-Feb-17 19,347,523CLP 37,521,594,800 USD 57,153,991 08-Feb-17 (1,373,345)INR 4,663,372,048 USD 69,143,332 08-Feb-17 (785,489)JPY 16,916,200,000 USD 163,212,890 08-Feb-17 (18,186,144)MYR 71,770,000 USD 17,667,331 08-Feb-17 (1,706,028)USD 169,603,884 EUR 149,678,000 08-Feb-17 11,786,200USD 293,985,307 JPY 33,986,480,000 08-Feb-17 2,610,849CLP 25,471,061,000 USD 38,598,365 09-Feb-17 (734,902)JPY 16,959,680,000 USD 163,640,293 09-Feb-17 (18,235,346)USD 113,935,428 EUR 100,935,000 09-Feb-17 7,507,006USD 406,469,498 JPY 46,914,200,000 09-Feb-17 4,247,476INR 4,444,906,975 USD 65,811,474 10-Feb-17 (669,361)MYR 313,497,132 USD 77,083,140 10-Feb-17 (7,367,536)USD 136,838,186 EUR 121,608,000 10-Feb-17 8,606,271USD 80,486,111 JPY 8,190,991,000 10-Feb-17 10,257,477MYR 1,025,010,798 USD 253,073,222 13-Feb-17 (25,153,760)USD 25,021,920 EUR 22,000,000 13-Feb-17 1,820,685EUR 102,519,000 USD 107,341,494 14-Feb-17 779,723USD 716,579,635 EUR 651,673,770 14-Feb-17 29,294,731CLP 22,050,203,000 USD 33,283,325 15-Feb-17 (518,168)








USD

INR 11,330,182,000 USD 168,691,652 16-Feb-17 (2,744,878)JPY 2,709,240,000 USD 27,110,022 16-Feb-17 (3,876,090)MYR 97,280,000 USD 22,245,598 16-Feb-17 (616,765)USD 234,903,692 EUR 210,762,126 16-Feb-17 12,605,757USD 796,399,651 JPY 87,941,947,300 16-Feb-17 42,226,085CLP 43,915,804,500 USD 65,060,451 17-Feb-17 186,865USD 377,861,055 EUR 350,648,047 17-Feb-17 8,005,258CLP 58,725,893,045 USD 86,293,587 21-Feb-17 934,378INR 2,693,759,000 USD 39,250,459 21-Feb-17 183,293MYR 53,977,000 USD 12,636,545 21-Feb-17 (637,523)USD 479,999,092 EUR 446,021,830 21-Feb-17 9,466,484CLP 17,850,271,955 USD 26,269,716 22-Feb-17 242,256USD 595,648,017 EUR 552,035,233 22-Feb-17 13,251,780USD 316,820,535 EUR 296,939,672 23-Feb-17 3,536,588PHP 1,002,000,000 USD 21,405,683 24-Feb-17 (1,368,755)CLP 64,447,433,750 USD 94,921,094 27-Feb-17 767,077INR 4,982,330,000 USD 72,349,234 27-Feb-17 541,934USD 790,493,090 AUD 1,072,509,450 27-Feb-17 17,702,322USD 671,470,357 EUR 629,635,085 27-Feb-17 7,067,551USD 143,490,429 JPY 15,882,943,000 27-Feb-17 7,225,237CLP 31,523,960,000 USD 46,099,999 28-Feb-17 702,009USD 125,835,997 EUR 112,849,300 28-Feb-17 6,750,311USD 108,119,824 JPY 10,962,269,000 28-Feb-17 14,067,255JPY 9,610,390,000 USD 96,220,327 01-Mar-17 (13,761,703)USD 149,447,215 EUR 133,871,290 01-Mar-17 8,169,390USD 86,367,672 JPY 9,610,390,000 01-Mar-17 3,909,049USD 146,830,651 JPY 16,367,800,000 03-Mar-17 6,376,331CLP 15,849,470,000 USD 23,325,195 06-Mar-17 196,446USD 8,994,194 EUR 8,429,068 06-Mar-17 96,133USD 68,869,991 JPY 7,734,100,000 06-Mar-17 2,491,225USD 30,683,834 EUR 27,680,000 07-Mar-17 1,461,978USD 226,560,923 KRW 264,963,000,000 07-Mar-17 7,152,278USD 40,824,353 JPY 4,116,972,690 09-Mar-17 5,483,910CLP 24,982,036,000 USD 37,482,425 13-Mar-17 (424,466)USD 28,457,162 AUD 37,756,000 13-Mar-17 1,260,958USD 52,619,147 EUR 49,629,000 13-Mar-17 206,940INR 7,011,302,780 USD 102,579,412 14-Mar-17 (217,653)USD 28,384,446 AUD 38,189,000 14-Mar-17 876,973USD 345,691,315 EUR 323,907,250 14-Mar-17 3,598,881USD 222,363,770 EUR 208,567,650 15-Mar-17 2,073,343USD 59,635,592 AUD 79,820,100 16-Mar-17 2,143,930USD 341,107,048 EUR 319,558,220 16-Mar-17 3,567,590INR 3,744,585,000 USD 54,833,577 17-Mar-17 (187,515)USD 293,765,130 AUD 402,970,000 17-Mar-17 3,526,373MYR 613,415,634 USD 150,118,550 20-Mar-17 (13,950,220)USD 120,380,122 AUD 160,904,800 20-Mar-17 4,496,524MYR 379,910,000 USD 92,054,762 21-Mar-17 (7,725,890)USD 78,659,049 AUD 107,590,000 21-Mar-17 1,174,525USD 50,099,787 JPY 5,096,150,292 21-Mar-17 6,323,916USD 79,858,580 AUD 108,660,000 22-Mar-17 1,605,245MYR 66,577,867 USD 16,187,179 23-Mar-17 (1,410,595)USD 195,776,978 JPY 19,770,548,000 23-Mar-17 25,928,735USD 46,370,196 JPY 5,104,245,733 24-Mar-17 2,517,246USD 191,719,734 KRW 214,659,000,000 27-Mar-17 13,976,273MYR 276,878,000 USD 66,541,216 28-Mar-17 (5,107,880)USD 195,428,984 KRW 216,506,000,000 28-Mar-17 16,156,652USD 11,815,583 JPY 1,323,298,000 31-Mar-17 442,021PHP 1,000,000,000 USD 21,312,873 07-Apr-17 (1,423,194)USD 45,513,012 JPY 4,649,450,000 07-Apr-17 5,537,325MYR 56,852,000 USD 14,521,213 11-Apr-17 (1,917,218)USD 89,950,646 JPY 9,249,400,000 11-Apr-17 10,408,592AUD 167,300,000 USD 126,390,131 13-Apr-17 (5,968,223)USD 150,730,000 AUD 200,000,000 13-Apr-17 6,770,755USD 105,531,409 JPY 11,066,000,000 13-Apr-17 10,357,401MYR 216,409,761 USD 54,947,254 18-Apr-17 (6,988,999)USD 138,338,976 JPY 14,877,430,000 18-Apr-17 10,351,714USD 233,221,980 JPY 24,666,075,000 20-Apr-17 21,003,428USD 192,520,041 JPY 20,761,650,000 21-Apr-17 13,884,693USD 171,218,983 JPY 17,654,980,000 24-Apr-17 19,290,403USD 251,440,979 KRW 286,605,000,000 25-Apr-17 14,092,183USD 69,684,541 KRW 79,855,000,000 26-Apr-17 3,553,131USD 84,080,688 KRW 96,285,000,000 02-May-17 4,340,237USD 81,920,168 JPY 8,388,830,000 08-May-17 9,678,944USD 333,409,847 JPY 34,482,288,000 15-May-17 36,355,721USD 69,589,272 JPY 7,474,214,600 16-May-17 5,197,949USD 160,413,599 JPY 17,375,199,000 18-May-17 10,708,671








USD

MYR 48,796,560 USD 11,990,800 19-May-17 (1,196,427)USD 55,133,366 JPY 5,938,470,000 22-May-17 3,956,940USD 532,878,385 KRW 624,450,300,000 22-May-17 15,669,602USD 89,166,900 JPY 9,800,165,000 25-May-17 4,698,243USD 183,336,168 KRW 215,585,000,000 25-May-17 4,772,233USD 222,597,347 KRW 260,105,000,000 02-Jun-17 7,149,037USD 24,726,844 JPY 2,577,996,000 16-Jun-17 2,481,724USD 537,007,452 KRW 626,902,500,000 20-Jun-17 17,684,445USD 275,190,795 KRW 321,065,100,000 22-Jun-17 9,219,076MYR 174,589,000 USD 42,176,350 30-Jun-17 (3,647,837)USD 87,430,379 JPY 8,817,004,000 30-Jun-17 11,294,595PHP 554,682,000 USD 11,672,847 03-Jul-17 (726,916)USD 185,894,555 JPY 18,819,500,000 03-Jul-17 23,359,411PHP 1,662,833,380 USD 34,858,046 10-Jul-17 (2,057,525)MYR 24,570,000 USD 6,086,052 17-Jul-17 (668,217)USD 490,165,413 JPY 51,072,050,000 27-Jul-17 48,499,192JPY 8,664,520,547 USD 87,392,411 31-Jul-17 (12,446,009)USD 216,039,906 AUD 290,385,000 31-Jul-17 7,540,055USD 188,888,074 JPY 19,614,550,547 31-Jul-17 19,226,062MYR 161,430,000 USD 35,596,472 11-Aug-17 (41,657)USD 27,238,361 JPY 2,709,250,000 15-Aug-17 3,784,567JPY 6,116,808,000 USD 61,745,400 18-Aug-17 (8,783,877)USD 61,936,088 JPY 6,116,808,000 18-Aug-17 8,974,565USD 206,389,067 JPY 20,349,416,000 22-Aug-17 30,157,770JPY 2,711,038,000 USD 27,373,162 24-Aug-17 (3,892,279)USD 55,261,837 JPY 5,454,350,000 24-Aug-17 8,020,537USD 112,620,999 JPY 11,126,110,000 28-Aug-17 16,234,172JPY 5,333,871,000 USD 53,869,323 30-Aug-17 (7,656,276)USD 120,006,577 JPY 11,838,705,000 30-Aug-17 17,435,176USD 92,743,664 JPY 9,339,287,000 01-Sep-17 11,818,502USD 50,597,248 JPY 5,115,002,306 19-Sep-17 6,231,705USD 45,931,835 JPY 4,649,450,000 10-Oct-17 5,552,042USD 51,602,531 JPY 5,295,761,344 09-Nov-17 5,519,728USD 50,801,951 JPY 5,202,196,000 14-Nov-17 5,518,587USD 63,209,477 JPY 6,695,211,000 16-Nov-17 4,922,323USD 66,883,758 JPY 7,286,651,000 27-Nov-17 3,402,134

856,998,385

811,918,585


Bank of America 31,516,372Barclays Bank 101,476,739BNP Paribas (1,452,521)Citibank 84,435,743Credit Suisse International (3,620,551)Deutsche Bank (31,121,603)Goldman Sachs 95,263,571HSBC Bank 114,117,098JPMorgan Chase Bank 178,504,199Morgan Stanley 77,464,333Standard Chartered 158,133,534The Bank of New York Mellon (845,215)UBS 8,046,886

811,918,585

Templeton Global Bond (Euro) Fund



EUR

Forward foreign exchange contracts used for efficient portfolio management:EUR 1,241,504 IDR 18,700,000,000 19-Jan-17 (70,868)EUR 5,116,252 BRL 17,901,765 27-Jan-17 (61,961)EUR 1,128,205 COP 3,960,000,000 30-Jan-17 (114,390)EUR 7,391,212 MXN 163,710,857 07-Feb-17 (53,925)EUR 5,260,191 USD 5,889,626 13-Feb-17 (324,499)EUR 884,481 BRL 3,300,000 15-Feb-17 (64,617)EUR 6,541,625 USD 7,380,000 16-Feb-17 (455,398)EUR 13,528,475 IDR 200,816,202,006 21-Feb-17 (461,400)EUR 631,877 ZAR 9,906,939 21-Feb-17 (44,704)EUR 136,202 ZAR 2,130,030 22-Feb-17 (9,233)EUR 1,565,962 KRW 2,000,000,000 27-Feb-17 (3,547)EUR 256,665 ZAR 3,947,000 27-Feb-17 (12,537)






Templeton Global Bond (Euro) Fund (continued)Purchases Sales Maturity


EUR

EUR 1,631,206 IDR 25,300,000,000 28-Feb-17 (128,755)EUR 3,001,587 MYR 13,803,100 28-Feb-17 94,543EUR 20,206,635 USD 23,000,000 28-Feb-17 (1,588,881)EUR 6,232,069 KRW 7,967,700,000 02-Mar-17 (19,586)EUR 283,228 ZAR 4,337,000 06-Mar-17 (12,093)EUR 4,013,668 COP 13,029,000,000 15-Mar-17 (41,567)EUR 15,112,854 MXN 329,786,348 15-Mar-17 205,985EUR 832,499 IDR 13,300,000,000 17-Mar-17 (88,980)EUR 20,692,493 BRL 78,600,436 27-Mar-17 (1,623,403)EUR 14,615,036 IDR 221,500,450,600 29-Mar-17 (688,012)EUR 1,075,380 MXN 23,647,600 31-Mar-17 9,772EUR 13,976,141 MXN 312,555,113 04-Apr-17 (96,419)EUR 7,420,751 USD 8,404,000 04-Apr-17 (526,881)EUR 1,305,497 MXN 29,039,469 07-Apr-17 (1,163)EUR 25,952,255 KRW 32,609,008,000 11-Apr-17 425,049KRW 12,600,000,000 EUR 9,963,861 11-Apr-17 (100,243)EUR 370,582 MXN 7,935,270 18-Apr-17 14,346EUR 6,341,814 BRL 23,849,025 15-May-17 (329,239)EUR 7,716,281 COP 26,443,693,750 15-May-17 (404,938)EUR 1,329,890 BRL 5,150,000 18-May-17 (109,374)EUR 1,227,777 MXN 27,429,763 23-May-17 5,310EUR 9,800,000 BRL 37,020,480 25-May-17 (524,424)EUR 13,028,752 INR 974,239,750 25-May-17 (265,279)EUR 9,800,000 MXN 219,490,600 25-May-17 21,976EUR 9,800,000 ARS 181,888,000 26-May-17 (46,478)EUR 17,381,218 MXN 393,041,480 01-Jun-17 (102,929)EUR 1,901,782 MXN 42,611,339 13-Jun-17 10,942EUR 16,273,197 KRW 20,764,600,000 30-Jun-17 77,162

(7,510,638)


Barclays Bank (1,667,448)Citibank (3,512,673)Deutsche Bank (1,657,960)HSBC Bank (46,563)JPMorgan Chase Bank (625,994)

(7,510,638)

Templeton Global Currency Fund



USD


Forward foreign exchange contracts used for efficient portfolio management:USD 320,142 AUD 425,000 13-Jan-17 13,579USD 499,891 EUR 450,000 13-Jan-17 26,036USD 499,998 JPY 51,578,000 13-Jan-17 58,395CLP 134,020,000 USD 199,405 18-Jan-17 229USD 490,187 JPY 50,500,000 13-Feb-17 57,157USD 496,687 EUR 450,000 14-Feb-17 22,097USD 954,653 EUR 900,000 13-Mar-17 4,181USD 449,736 JPY 51,600,000 13-Mar-17 6,696MYR 2,200,000 USD 522,069 13-Apr-17 (34,389)USD 319,481 AUD 425,000 13-Apr-17 13,567USD 500,419 JPY 51,400,000 13-Apr-17 58,349MXN 10,382,000 USD 525,724 17-Oct-17 (46,429)

179,468

195,586


Bank of America 87Barclays Bank 66Citibank 169,337Deutsche Bank (37,628)JPMorgan Chase Bank 63,621UBS 103

195,586






Templeton Global Equity Income Fund



USD

Forward foreign exchange contracts used for share class hedging:CNH 3,437,626 USD 491,656 20-Jan-17 (2,596)


Bank of America (328)Barclays Bank (120)BNP Paribas (257)Citibank (319)Credit Suisse International (210)Goldman Sachs (381)HSBC Bank (203)JPMorgan Chase Bank (298)Morgan Stanley (100)UBS (380)

(2,596)

Templeton Global High Yield Fund



USD

Forward foreign exchange contracts used for efficient portfolio management:PHP 13,436,450 USD 283,111 05-Jan-17 (12,464)USD 178,344 EUR 158,417 09-Jan-17 11,566USD 79,195 JPY 7,985,000 10-Jan-17 10,841USD 109,907 EUR 99,224 17-Jan-17 5,400USD 195,954 JPY 22,870,000 17-Jan-17 99USD 191,047 EUR 173,000 19-Jan-17 8,816USD 330,804 JPY 34,670,000 19-Jan-17 33,859USD 3,816,595 EUR 3,463,753 23-Jan-17 167,211USD 49,643 JPY 5,730,000 23-Jan-17 554USD 101,756 JPY 11,920,000 27-Jan-17 (386)USD 3,877,641 EUR 3,534,801 30-Jan-17 152,014INR 73,170,000 USD 1,083,485 31-Jan-17 (10,044)USD 8,883 EUR 8,100 31-Jan-17 345USD 125,257 JPY 14,667,628 31-Jan-17 (454)USD 916,207 EUR 827,589 03-Feb-17 43,795INR 81,830,000 USD 1,213,839 07-Feb-17 (14,214)USD 105,052 JPY 10,691,000 10-Feb-17 13,388USD 6,570,295 EUR 5,993,439 14-Feb-17 249,340USD 102,251 EUR 95,745 16-Feb-17 1,265USD 286,218 JPY 31,958,070 16-Feb-17 12,150USD 212,252 EUR 196,876 17-Feb-17 4,592USD 76,561 EUR 71,000 21-Feb-17 1,659USD 757,568 EUR 711,773 22-Feb-17 6,648USD 448,644 EUR 420,000 23-Feb-17 5,526USD 235,496 EUR 220,841 27-Feb-17 2,460USD 191,355 JPY 21,191,000 27-Feb-17 9,550USD 2,645,304 EUR 2,490,319 28-Feb-17 17,363USD 113,083 JPY 11,466,000 28-Feb-17 14,708USD 116,175 EUR 104,000 01-Mar-17 6,421USD 587,421 ZAR 8,362,992 01-Mar-17 (14,256)USD 385,740 JPY 43,000,000 03-Mar-17 16,751USD 180,766 JPY 20,300,000 06-Mar-17 6,539USD 332,556 EUR 300,000 07-Mar-17 15,845GHS 953,921 USD 207,939 13-Mar-17 3,365USD 345,952 AUD 459,000 13-Mar-17 15,328USD 589,764 EUR 556,250 13-Mar-17 2,319USD 346,360 AUD 466,000 14-Mar-17 10,701USD 384,119 EUR 359,088 16-Mar-17 4,825USD 409,625 JPY 41,366,000 23-Mar-17 54,251USD 161,555 JPY 16,315,550 24-Mar-17 21,381USD 909,269 AUD 1,191,000 29-Mar-17 51,687USD 15,054 JPY 1,686,000 31-Mar-17 563USD 55,826 JPY 5,783,000 15-May-17 6,007USD 95,474 JPY 10,254,000 16-May-17 7,136USD 991,557 EUR 906,078 18-May-17 31,294USD 1,643,957 GBP 1,253,015 18-May-17 94,987USD 200,388 JPY 21,705,000 18-May-17 13,377USD 68,869 JPY 7,418,000 22-May-17 4,943USD 120,596 JPY 13,255,000 25-May-17 6,349USD 30,885 JPY 3,220,000 16-Jun-17 3,100USD 216,964 JPY 21,880,000 30-Jun-17 28,028PHP 2,874,000 USD 60,481 03-Jul-17 (3,766)






Templeton Global High Yield Fund (continued)Purchases Sales Maturity


USD

PHP 8,994,140 USD 188,544 10-Jul-17 (11,129)USD 240,346 JPY 24,957,896 31-Jul-17 24,465USD 39,210 JPY 3,900,000 15-Aug-17 5,448USD 76,326 JPY 7,538,000 18-Aug-17 11,060USD 272,401 JPY 26,858,000 22-Aug-17 39,803USD 68,470 JPY 6,758,000 24-Aug-17 9,937USD 215,360 JPY 21,276,000 28-Aug-17 31,044USD 144,154 JPY 14,216,000 30-Aug-17 20,986USD 131,271 JPY 13,219,000 01-Sep-17 16,728USD 73,909 JPY 7,585,026 09-Nov-17 7,906USD 150,392 JPY 15,414,000 14-Nov-17 16,218USD 76,980 JPY 8,258,000 21-Nov-17 5,065USD 110,771 JPY 12,068,000 27-Nov-17 5,635

1,305,928


Bank of America 56,950Barclays Bank 87,251Citibank 81,762Deutsche Bank 822,291Goldman Sachs 7,786HSBC Bank 42,877JPMorgan Chase Bank 126,380Morgan Stanley 33,621Standard Chartered 47,010

1,305,928

Templeton Global Income Fund



USD

Forward foreign exchange contracts used for share class hedging:EUR 52,633,149 USD 55,945,980 17-Jan-17 (510,438)SGD 274,120 USD 192,159 17-Jan-17 (2,864)USD 135,047 EUR 129,045 17-Jan-17 (869)

(514,171)

Forward foreign exchange contracts used for efficient portfolio management:MYR 1,804,650 USD 437,862 05-Jan-17 (35,739)CLP 117,460,000 USD 176,938 09-Jan-17 (1,781)USD 4,821,955 EUR 4,281,000 09-Jan-17 315,005USD 5,751,967 JPY 672,872,000 10-Jan-17 (8,026)USD 1,882,666 JPY 188,020,000 11-Jan-17 273,061CLP 510,851,000 USD 759,573 12-Jan-17 1,932USD 92,780 EUR 84,250 12-Jan-17 4,069USD 3,637,095 EUR 3,300,000 13-Jan-17 162,156CLP 510,851,000 USD 758,840 17-Jan-17 2,208USD 12,792,798 EUR 11,736,000 17-Jan-17 431,928USD 321,907 JPY 37,570,000 17-Jan-17 162CLP 202,460,000 USD 300,230 18-Jan-17 1,352USD 18,713,512 EUR 16,897,000 19-Jan-17 914,888USD 582,037 JPY 61,000,000 19-Jan-17 59,576CLP 267,774,000 USD 395,981 20-Jan-17 2,796USD 18,713,650 EUR 16,972,000 20-Jan-17 835,038USD 926,595 EUR 839,410 23-Jan-17 42,199USD 81,611 JPY 9,420,000 23-Jan-17 911CLP 291,793,375 USD 433,559 24-Jan-17 780USD 112,616,740 EUR 102,529,853 24-Jan-17 4,586,115MYR 999,110 USD 247,980 25-Jan-17 (25,649)CLP 40,329,250 USD 61,114 27-Jan-17 (1,105)USD 296,391 JPY 34,720,000 27-Jan-17 (1,125)CLP 127,028,000 USD 188,931 30-Jan-17 25USD 12,721,526 EUR 11,596,757 30-Jan-17 498,718CLP 190,543,000 USD 285,666 31-Jan-17 (2,248)PHP 25,552,280 USD 516,385 31-Jan-17 (3,737)USD 364,969 JPY 42,737,915 31-Jan-17 (1,324)USD 1,626,391 EUR 1,482,000 01-Feb-17 64,255USD 1,629,222 EUR 1,482,000 02-Feb-17 67,020USD 2,803,175 EUR 2,540,331 03-Feb-17 125,257CLP 62,966,500 USD 95,748 06-Feb-17 (2,129)MXN 19,921,000 USD 1,051,490 07-Feb-17 (96,307)CLP 150,589,000 USD 229,382 08-Feb-17 (5,512)MYR 10,790,000 USD 2,656,131 08-Feb-17 (256,487)






Templeton Global Income Fund (continued)Purchases Sales Maturity


USD

USD 838,513 EUR 740,000 08-Feb-17 58,270USD 3,632,146 JPY 419,900,000 08-Feb-17 32,240CLP 22,753,000 USD 34,480 09-Feb-17 (656)USD 3,641,986 JPY 420,520,000 09-Feb-17 36,630USD 314,860 JPY 32,043,000 10-Feb-17 40,127MYR 10,790,000 USD 2,669,140 13-Feb-17 (269,896)USD 22,058,219 EUR 20,149,819 14-Feb-17 807,300MYR 166,000 USD 37,960 16-Feb-17 (1,052)USD 6,536,649 EUR 6,120,745 16-Feb-17 80,893CLP 1,021,214,250 USD 1,512,910 17-Feb-17 4,345CLP 8,628,229 USD 12,678 21-Feb-17 138USD 1,681,696 EUR 1,560,000 21-Feb-17 35,967USD 15,187,661 KRW 17,724,000,000 21-Feb-17 510,757CLP 8,731,771 USD 12,850 22-Feb-17 119USD 1,970,240 EUR 1,849,296 22-Feb-17 19,236USD 28,116,579 EUR 25,856,000 23-Feb-17 837,403CLP 205,054,250 USD 301,769 27-Feb-17 2,684USD 5,987,867 EUR 5,617,768 27-Feb-17 59,892USD 287,229 JPY 31,808,000 27-Feb-17 14,337CLP 232,658,000 USD 340,233 28-Feb-17 5,183USD 1,574,232 EUR 1,482,000 28-Feb-17 10,333USD 374,765 JPY 38,000,000 28-Feb-17 48,737CLP 65,350,000 USD 96,174 06-Mar-17 810USD 396,229 EUR 371,333 06-Mar-17 4,235USD 398,969 EUR 371,333 07-Mar-17 6,952USD 5,892,262 KRW 6,891,000,000 07-Mar-17 186,012CLP 533,406,875 USD 800,310 13-Mar-17 (9,063)GHS 7,640 USD 1,665 13-Mar-17 27USD 8,964,653 AUD 11,894,000 13-Mar-17 397,229USD 3,587,670 AUD 4,802,000 14-Mar-17 128,798USD 13,089,446 EUR 12,275,000 15-Mar-17 124,516USD 1,997,289 AUD 2,673,300 16-Mar-17 71,804AUD 13,500,000 USD 10,231,448 17-Mar-17 (508,085)USD 9,841,500 AUD 13,500,000 17-Mar-17 118,138USD 20,325,181 AUD 27,550,900 20-Mar-17 483,029USD 1,690,425 JPY 171,950,000 21-Mar-17 213,376KRW 5,445,000,000 USD 4,934,152 27-Mar-17 (425,545)USD 4,863,127 KRW 5,445,000,000 27-Mar-17 354,520USD 77,333 JPY 8,661,000 31-Mar-17 2,893MYR 3,582,750 USD 897,078 03-Apr-17 (102,420)MYR 289,940 USD 73,823 05-Apr-17 (9,521)MYR 2,745,100 USD 695,226 07-Apr-17 (86,501)USD 29,783,144 JPY 3,045,802,600 07-Apr-17 3,595,520MYR 131,000 USD 33,460 11-Apr-17 (4,418)USD 10,588,607 JPY 1,088,800,000 11-Apr-17 1,225,255USD 5,361,224 JPY 551,300,000 13-Apr-17 619,725USD 6,378,032 KRW 7,270,000,000 25-Apr-17 357,461KRW 2,026,000,000 USD 1,816,877 26-Apr-17 (139,058)USD 1,767,965 KRW 2,026,000,000 26-Apr-17 90,146USD 13,592,808 JPY 1,392,000,000 08-May-17 1,605,464USD 117,196 JPY 12,600,000 16-May-17 8,646USD 112,248 EUR 100,000 18-May-17 6,268USD 8,728,129 JPY 936,560,750 18-May-17 658,710USD 8,223,413 JPY 885,250,325 19-May-17 595,693USD 4,261,564 JPY 460,429,500 22-May-17 293,685USD 495,150 JPY 54,436,000 25-May-17 25,961USD 1,757,350 JPY 200,250,000 13-Jun-17 29,690USD 4,027,989 JPY 451,216,000 16-Jun-17 134,518USD 3,494,068 JPY 364,910,000 19-Jun-17 344,832USD 2,613,567 JPY 268,250,000 20-Jun-17 298,405USD 3,551,691 JPY 365,540,000 22-Jun-17 396,532JPY 975,400,400 USD 9,539,368 23-Jun-17 (1,119,766)USD 9,480,031 JPY 975,400,400 23-Jun-17 1,060,429PHP 8,671,520 USD 182,167 30-Jun-17 (11,016)PHP 8,577,000 USD 180,496 03-Jul-17 (11,240)USD 700,139 JPY 72,703,435 31-Jul-17 71,268MXN 65,995,000 USD 3,345,059 07-Aug-17 (264,093)USD 361,968 JPY 35,748,000 18-Aug-17 52,449USD 748,742 JPY 73,826,000 22-Aug-17 109,390USD 323,070 JPY 31,887,000 24-Aug-17 46,889USD 361,381 JPY 35,611,000 30-Aug-17 52,844USD 574,757 JPY 57,878,000 01-Sep-17 73,242USD 5,406,767 JPY 547,300,000 10-Oct-17 653,547MXN 74,782,000 USD 3,782,026 06-Nov-17 (340,509)USD 180,398 JPY 19,352,000 21-Nov-17 11,868USD 446,546 JPY 48,649,000 27-Nov-17 22,714






Templeton Global Income Fund (continued)Purchases Sales Maturity


USD

USD 1,212,622 JPY 135,790,000 12-Dec-17 28,455USD 1,644,463 JPY 185,530,000 13-Dec-17 26,429

21,838,408

21,324,237


Bank of America 976,739Barclays Bank 3,847,529BNP Paribas (14,116)Citibank 1,953,881Credit Suisse International (3,174)Deutsche Bank 5,286,069Goldman Sachs 321,872HSBC Bank 1,581,173JPMorgan Chase Bank 7,423,055Morgan Stanley (102,149)Standard Chartered 83,470The Bank of New York Mellon (16,942)UBS (13,170)

21,324,237

Templeton Global Total Return Fund



USD

Forward foreign exchange contracts used for share class hedging:BRL 30,040,350 USD 8,750,000 04-Jan-17 466,763USD 8,875,861 BRL 30,040,350 04-Jan-17 (340,903)EUR 1,550,256,190 USD 1,668,745,808 10-Jan-17 (36,577,683)GBP 117,879,387 USD 149,394,316 10-Jan-17 (4,138,195)JPY 10,496,792,378 USD 92,261,561 10-Jan-17 (2,405,767)PLN 401,081,652 USD 96,787,931 10-Jan-17 (994,060)USD 66,237,260 EUR 63,622,686 10-Jan-17 (747,102)CHF 182,372,889 USD 180,503,719 17-Jan-17 (1,178,851)EUR 1,411,032,320 USD 1,499,899,596 17-Jan-17 (13,738,412)GBP 1,179,872 USD 1,497,195 17-Jan-17 (43,010)NOK 27,914,275 USD 3,304,882 17-Jan-17 (73,114)SGD 315,940,009 USD 221,405,046 17-Jan-17 (3,231,005)USD 8,680,693 CHF 8,921,161 17-Jan-17 (91,366)AUD 86,564,335 USD 63,621,646 20-Jan-17 (1,192,642)CHF 25,763,268 USD 25,119,606 20-Jan-17 218,902CNH 50,310,232 USD 7,195,887 20-Jan-17 (38,412)EUR 1,289,897,603 USD 1,351,312,092 20-Jan-17 7,489,379GBP 87,358,716 USD 108,831,269 20-Jan-17 (1,152,777)NOK 20,680,502 USD 2,377,705 20-Jan-17 16,644SEK 350,590,424 USD 37,467,604 20-Jan-17 1,075,723USD 6,195,388 GBP 4,992,939 20-Jan-17 41,084BRL 30,716,625 USD 9,000,000 02-Feb-17 348,408USD 300,000 BRL 991,920 02-Feb-17 (1,885)

(56,288,281)

Forward foreign exchange contracts used for efficient portfolio management:MYR 564,736,600 USD 137,022,104 05-Jan-17 (11,183,920)USD 26,943,985 MYR 114,000,000 05-Jan-17 1,541,783MXN 1,753,525,150 USD 98,684,260 06-Jan-17 (14,214,069)AUD 29,800,000 USD 22,559,941 09-Jan-17 (1,062,134)CLP 10,652,197,500 USD 16,046,091 09-Jan-17 (161,553)MYR 388,245,900 USD 87,894,281 09-Jan-17 (1,405,997)USD 252,558,800 AUD 340,000,000 09-Jan-17 7,281,813USD 37,241,780 EUR 33,083,000 09-Jan-17 2,412,670USD 109,763,155 JPY 11,979,648,000 10-Jan-17 7,213,657CLP 3,973,600,000 USD 5,916,177 11-Jan-17 7,823MYR 73,540,000 USD 18,368,927 11-Jan-17 (1,988,849)USD 179,300,739 EUR 161,778,383 11-Jan-17 8,964,977USD 192,765,423 JPY 19,251,290,000 11-Jan-17 27,958,566CLP 6,459,887,750 USD 9,605,067 12-Jan-17 24,431EUR 16,981,460 USD 17,764,305 12-Jan-17 116,386USD 160,932,912 EUR 144,333,044 12-Jan-17 8,956,897USD 6,471,940 JPY 645,000,000 12-Jan-17 949,880EUR 17,280,000 USD 18,589,824 13-Jan-17 (393,781)JPY 6,728,760,000 USD 67,650,205 13-Jan-17 (10,039,605)USD 415,176,762 EUR 373,747,907 13-Jan-17 21,615,831USD 66,133,283 JPY 6,728,760,000 13-Jan-17 8,522,684






Templeton Global Total Return Fund (continued)Purchases Sales Maturity


USD

CLP 6,459,887,750 USD 9,595,793 17-Jan-17 27,919USD 1,568,010,830 EUR 1,432,313,257 17-Jan-17 59,435,628USD 16,996,323 JPY 1,983,650,000 17-Jan-17 8,557CLP 19,932,223,000 USD 29,606,433 18-Jan-17 84,318INR 1,740,008,000 USD 25,708,161 18-Jan-17 (149,251)MYR 14,696,000 USD 3,268,320 18-Jan-17 3,493EUR 14,769,000 USD 15,418,127 19-Jan-17 138,946MYR 94,153,183 USD 23,794,082 19-Jan-17 (2,833,890)USD 346,551,351 EUR 316,345,000 19-Jan-17 13,326,174USD 143,205,770 JPY 16,046,405,000 19-Jan-17 5,769,647CLP 10,289,283,000 USD 15,215,656 20-Jan-17 107,429INR 6,945,075,232 USD 102,765,467 20-Jan-17 (769,050)MXN 454,357,500 USD 24,390,450 20-Jan-17 (2,551,904)USD 325,017,900 EUR 294,769,000 20-Jan-17 14,502,902INR 6,486,475,320 USD 95,109,609 23-Jan-17 124,405JPY 12,562,790,000 USD 126,138,762 23-Jan-17 (18,513,768)MYR 32,116,300 USD 8,022,657 23-Jan-17 (874,900)USD 88,662,475 EUR 80,328,403 23-Jan-17 4,029,084USD 123,733,670 JPY 14,278,644,800 23-Jan-17 1,409,006CLP 18,440,998,500 USD 27,420,690 24-Jan-17 28,965INR 3,329,478,960 USD 49,169,671 25-Jan-17 (295,825)MYR 72,134,427 USD 17,903,804 25-Jan-17 (1,851,815)USD 119,211,832 JPY 12,566,000,000 25-Jan-17 11,546,459MYR 23,215,000 USD 5,799,256 26-Jan-17 (633,594)CLP 6,571,469,250 USD 9,958,280 27-Jan-17 (180,089)INR 5,623,018,274 USD 83,069,482 27-Jan-17 (544,265)USD 145,654,798 EUR 132,796,128 27-Jan-17 5,710,949USD 58,653,442 JPY 6,870,680,000 27-Jan-17 (221,526)CLP 9,096,315,000 USD 13,529,137 30-Jan-17 1,815CLP 13,644,473,000 USD 20,456,047 31-Jan-17 (160,973)INR 1,366,160,000 USD 20,229,787 31-Jan-17 (187,536)MYR 94,907,000 USD 21,803,563 31-Jan-17 (691,067)PHP 2,590,038,060 USD 52,341,977 31-Jan-17 (378,744)USD 173,394,181 EUR 158,117,604 31-Jan-17 6,733,634USD 26,224,943 JPY 3,070,940,841 31-Jan-17 (95,115)USD 15,378,287 EUR 14,013,000 01-Feb-17 607,561INR 905,518,000 USD 13,419,057 03-Feb-17 (138,747)USD 224,320,739 EUR 202,506,808 03-Feb-17 10,845,937CLP 19,524,975,500 USD 29,686,680 06-Feb-17 (656,439)MYR 402,591,646 USD 98,846,119 06-Feb-17 (9,305,697)USD 47,784,659 EUR 43,057,000 06-Feb-17 2,389,956USD 42,145,788 JPY 4,236,600,000 06-Feb-17 5,827,090INR 1,218,424,500 USD 18,073,707 07-Feb-17 (211,650)MXN 335,509,084 USD 17,709,170 07-Feb-17 (1,622,005)USD 87,915,968 JPY 9,039,300,000 07-Feb-17 10,422,722CLP 12,661,414,200 USD 19,286,236 08-Feb-17 (463,426)INR 2,567,214,987 USD 38,063,830 08-Feb-17 (432,417)JPY 5,000,000,000 USD 48,241,594 08-Feb-17 (5,375,363)MYR 166,855,200 USD 41,074,071 08-Feb-17 (3,966,276)USD 211,149,653 EUR 187,301,937 08-Feb-17 13,661,993USD 247,424,200 JPY 28,603,870,000 08-Feb-17 2,196,183CLP 7,815,130,000 USD 11,842,900 09-Feb-17 (225,485)EUR 5,618,000 USD 6,322,385 09-Feb-17 (398,623)MXN 222,421,500 USD 11,800,175 09-Feb-17 (1,137,745)USD 127,239,907 EUR 113,160,000 09-Feb-17 7,921,135USD 303,553,422 JPY 35,040,512,000 09-Feb-17 3,131,255INR 569,861,500 USD 8,437,393 10-Feb-17 (85,816)USD 19,380,225 EUR 17,209,558 10-Feb-17 1,233,273USD 22,010,642 JPY 2,240,001,000 10-Feb-17 2,805,126MXN 1,425,485,000 USD 74,040,358 13-Feb-17 (5,735,656)MYR 417,102,500 USD 103,062,837 13-Feb-17 (10,316,714)USD 17,149,539 EUR 14,966,000 13-Feb-17 1,366,372USD 776,669,047 EUR 706,609,640 14-Feb-17 31,446,269CLP 6,402,427,500 USD 9,664,042 15-Feb-17 (150,454)INR 9,484,087,325 USD 141,383,845 16-Feb-17 (2,475,775)MYR 429,238,848 USD 104,651,745 16-Feb-17 (9,216,557)USD 276,278,986 EUR 255,373,784 16-Feb-17 6,927,629USD 978,748,383 JPY 107,058,060,260 16-Feb-17 60,638,635CLP 13,543,171,750 USD 20,063,958 17-Feb-17 57,627MXN 449,959,410 USD 22,959,456 17-Feb-17 (1,408,334)USD 156,302,213 EUR 145,068,857 17-Feb-17 3,286,793CLP 6,723,624,671 USD 9,879,692 21-Feb-17 107,182INR 3,850,867,960 USD 56,110,563 21-Feb-17 262,026MYR 222,395,618 USD 52,983,120 21-Feb-17 (3,544,842)USD 64,974,285 EUR 60,395,814 21-Feb-17 1,259,467USD 425,062,554 KRW 496,048,000,000 21-Feb-17 14,294,743








USD

CLP 6,804,310,329 USD 10,013,702 22-Feb-17 92,345USD 804,501,722 EUR 742,617,733 22-Feb-17 21,041,272USD 309,761,856 EUR 290,173,027 23-Feb-17 3,617,008PHP 1,063,000,000 USD 22,708,823 24-Feb-17 (1,452,082)CLP 19,378,979,250 USD 28,531,206 27-Feb-17 241,686INR 1,091,268,000 USD 15,846,482 27-Feb-17 118,698MXN 139,958,300 USD 7,431,151 27-Feb-17 (735,126)USD 229,246,719 EUR 215,005,880 27-Feb-17 2,368,462USD 83,039,926 JPY 9,187,118,000 27-Feb-17 4,220,502CLP 15,010,678,000 USD 21,951,086 28-Feb-17 334,498USD 61,404,657 EUR 55,014,700 28-Feb-17 3,349,682USD 47,697,584 JPY 4,836,058,000 28-Feb-17 6,205,838MXN 109,621,300 USD 5,883,023 01-Mar-17 (639,686)USD 136,056,803 EUR 121,764,748 01-Mar-17 7,555,325USD 91,911,254 JPY 10,227,241,000 01-Mar-17 4,159,954USD 74,959,430 EUR 70,397,000 02-Mar-17 663,237USD 54,949,136 JPY 6,125,400,000 03-Mar-17 2,386,245CLP 5,917,450,000 USD 8,708,536 06-Mar-17 73,344MYR 117,400,000 USD 27,824,556 06-Mar-17 (1,742,043)USD 199,119,494 EUR 186,608,338 06-Mar-17 2,128,264USD 25,773,820 JPY 2,894,400,000 06-Mar-17 932,313USD 233,404,909 EUR 216,581,338 07-Mar-17 4,759,365USD 216,677,212 KRW 253,404,000,000 07-Mar-17 6,840,260MXN 1,421,720,750 USD 77,859,844 09-Mar-17 (9,929,397)USD 174,778,458 JPY 17,583,306,860 09-Mar-17 23,841,861MXN 2,458,753,300 USD 133,383,170 10-Mar-17 (15,918,478)CLP 7,668,765,250 USD 11,506,024 13-Mar-17 (130,299)GHS 108,131,172 USD 23,570,828 13-Mar-17 381,418MYR 123,193,860 USD 30,337,337 13-Mar-17 (2,978,960)USD 167,848,752 AUD 222,696,000 13-Mar-17 7,437,534USD 6,185,498 EUR 5,834,000 13-Mar-17 24,326INR 614,617,000 USD 8,992,202 14-Mar-17 (19,080)MXN 1,062,965,300 USD 57,949,370 14-Mar-17 (7,194,187)MYR 484,446,597 USD 118,359,784 14-Mar-17 (10,782,281)USD 100,453,165 AUD 134,840,000 14-Mar-17 3,328,137USD 285,896,952 EUR 267,882,755 14-Mar-17 2,974,406USD 285,534,669 EUR 267,803,880 15-Mar-17 2,678,574USD 74,823,373 AUD 100,148,400 16-Mar-17 2,689,938USD 250,940,566 EUR 234,972,614 16-Mar-17 2,746,266INR 1,114,241,000 USD 16,316,313 17-Mar-17 (55,797)MXN 973,468,180 USD 52,742,492 17-Mar-17 (6,279,214)USD 368,582,400 AUD 505,600,000 17-Mar-17 4,424,484MYR 303,538,035 USD 74,735,451 20-Mar-17 (7,354,926)USD 151,037,981 AUD 201,883,300 20-Mar-17 5,641,678MYR 1,204,421,000 USD 291,072,618 21-Mar-17 (23,726,499)USD 137,841,594 AUD 188,540,000 21-Mar-17 2,058,230USD 74,470,498 JPY 7,575,139,063 21-Mar-17 9,400,143MYR 317,491,850 USD 77,258,024 22-Mar-17 (6,788,321)USD 139,947,275 AUD 190,420,000 22-Mar-17 2,813,094MYR 575,042,790 USD 139,693,779 23-Mar-17 (12,066,263)USD 379,255,701 JPY 38,298,684,000 23-Mar-17 50,232,744USD 154,608,141 JPY 15,789,034,186 24-Mar-17 18,957,201USD 185,856,294 KRW 208,094,000,000 27-Mar-17 13,548,831MYR 110,094,000 USD 26,458,544 28-Mar-17 (2,031,028)PHP 1,065,040,000 USD 21,793,329 28-Mar-17 (588,516)USD 188,728,618 KRW 209,083,000,000 28-Mar-17 15,602,715PHP 2,584,840,000 USD 54,297,658 29-Mar-17 (2,840,818)MXN 796,131,500 USD 43,981,521 31-Mar-17 (6,053,983)MYR 678,110,620 USD 165,384,394 31-Mar-17 (14,952,594)USD 3,292,198 JPY 368,713,000 31-Mar-17 123,161MYR 1,391,465,762 USD 348,241,049 03-Apr-17 (39,612,449)MYR 58,914,800 USD 15,000,586 05-Apr-17 (1,934,733)USD 260,079,600 AUD 340,000,000 06-Apr-17 15,308,213MYR 552,087,100 USD 139,821,983 07-Apr-17 (17,396,832)PHP 1,060,000,000 USD 22,591,645 07-Apr-17 (1,508,586)USD 36,699,329 JPY 3,749,075,000 07-Apr-17 4,465,012MYR 164,173,000 USD 41,933,284 11-Apr-17 (5,536,400)USD 72,531,181 JPY 7,458,200,000 11-Apr-17 8,392,908USD 66,145,354 JPY 6,906,800,000 13-Apr-17 6,742,875USD 159,791,637 JPY 17,184,520,000 18-Apr-17 11,956,987USD 299,233,926 JPY 31,647,645,000 20-Apr-17 26,948,311USD 219,353,125 JPY 23,655,370,000 21-Apr-17 15,819,915USD 153,596,742 JPY 15,837,890,000 24-Apr-17 17,304,992USD 243,751,371 KRW 277,840,000,000 25-Apr-17 13,661,214USD 67,553,558 KRW 77,413,000,000 26-Apr-17 3,444,475USD 222,951,922 AUD 293,520,000 27-Apr-17 11,747,522








USD

USD 37,846,570 KRW 43,340,000,000 02-May-17 1,953,636USD 88,195,575 JPY 9,031,650,000 08-May-17 10,418,644USD 155,755,374 JPY 16,107,384,000 15-May-17 16,995,299USD 177,602,406 JPY 19,039,646,800 16-May-17 13,573,395USD 44,210,479 JPY 4,788,658,000 18-May-17 2,951,342MYR 39,448,560 USD 9,693,712 19-May-17 (967,227)USD 15,194,920 JPY 1,636,660,000 22-May-17 1,090,545USD 24,082,250 JPY 2,646,803,000 25-May-17 1,269,176USD 510,589,513 JPY 55,720,633,500 02-Jun-17 30,130,352USD 103,217,801 KRW 120,610,000,000 02-Jun-17 3,314,989USD 222,037,461 JPY 23,878,130,560 05-Jun-17 16,113,155USD 124,108,598 JPY 13,101,400,000 08-Jun-17 11,105,107USD 173,631,858 JPY 19,620,400,000 09-Jun-17 4,391,357USD 179,925,932 JPY 20,502,560,000 13-Jun-17 3,039,830USD 171,860,416 JPY 18,781,014,000 16-Jun-17 9,802,014USD 96,178,366 JPY 10,044,580,000 19-Jun-17 9,491,920MYR 175,700,000 USD 42,378,196 20-Jun-17 (3,582,999)USD 82,946,389 JPY 8,513,410,000 20-Jun-17 9,470,429PHP 2,160,520,000 USD 45,900,149 21-Jun-17 (3,225,177)USD 97,764,963 JPY 10,061,970,000 22-Jun-17 10,915,058USD 393,642,239 KRW 459,262,400,000 22-Jun-17 13,187,279MYR 163,692,200 USD 39,822,941 28-Jun-17 (3,695,773)PHP 6,865,851,820 USD 143,382,099 29-Jun-17 (7,861,910)MXN 965,877,600 USD 45,370,543 30-Jun-17 (6,833)MYR 53,615,000 USD 12,952,047 30-Jun-17 (1,120,224)PHP 878,965,960 USD 18,464,896 30-Jun-17 (1,116,617)USD 47,867,144 JPY 4,827,210,000 30-Jun-17 6,183,663PHP 865,534,000 USD 18,214,483 03-Jul-17 (1,134,290)USD 74,980,121 JPY 7,590,800,000 03-Jul-17 9,421,962MYR 40,586,500 USD 10,053,380 17-Jul-17 (1,103,809)USD 78,114,606 JPY 8,155,946,000 25-Jul-17 7,590,504USD 50,304,357 JPY 5,223,683,046 31-Jul-17 5,120,524MYR 46,388,000 USD 10,228,886 11-Aug-17 (11,970)USD 7,806,001 JPY 776,420,000 15-Aug-17 1,084,586USD 16,529,931 JPY 1,632,496,000 18-Aug-17 2,395,194USD 55,338,760 JPY 5,456,256,000 22-Aug-17 8,086,148USD 14,754,379 JPY 1,456,259,000 24-Aug-17 2,141,406USD 35,268,669 JPY 3,484,280,000 28-Aug-17 5,083,933USD 33,830,987 JPY 3,337,540,000 30-Aug-17 4,914,299USD 24,991,837 JPY 2,516,678,000 01-Sep-17 3,184,758MXN 1,031,269,440 USD 48,647,080 13-Sep-17 (781,758)USD 21,027,015 JPY 2,125,673,513 19-Sep-17 2,589,748USD 37,037,046 JPY 3,749,075,000 10-Oct-17 4,476,878USD 15,100,501 JPY 1,549,704,004 09-Nov-17 1,615,244USD 511,178,924 JPY 52,409,906,500 14-Nov-17 54,968,343USD 60,371,900 JPY 6,394,652,000 16-Nov-17 4,701,352USD 18,249,750 JPY 1,988,219,000 27-Nov-17 928,299USD 144,363,170 JPY 16,165,860,000 12-Dec-17 3,387,562MXN 2,082,611,100 USD 97,046,183 13-Dec-17 (1,757,948)USD 168,369,275 JPY 18,995,590,000 13-Dec-17 2,705,976MXN 439,250,500 USD 20,690,572 15-Dec-17 (599,298)

719,359,419

663,071,138


Bank of America 40,906,896Barclays Bank 211,126,231BNP Paribas (1,911,711)Citibank 112,279,220Credit Suisse International (6,347,055)Deutsche Bank 22,180,089Goldman Sachs 51,440,382HSBC Bank 4,946,604JPMorgan Chase Bank 170,930,441Morgan Stanley 28,934,049Standard Chartered 32,614,121The Bank of New York Mellon (1,820,661)UBS (2,207,468)

663,071,138






Templeton Latin America Fund



USD

Forward foreign exchange contracts used for share class hedging:PLN 32,201,367 USD 7,682,010 17-Jan-17 7,847USD 641,189 PLN 2,723,780 17-Jan-17 (9,265)EUR 5,988,333 MXN 130,115,400 25-Jan-17 60,959EUR 9,453,037 USD 9,891,700 25-Jan-17 69,046MXN 3,461,700 EUR 158,432 25-Jan-17 (688)EUR 9,437,534 BRL 33,145,600 26-Jan-17 (161,547)

(33,648)


Bank of America (2,816)Barclays Bank (11)BNP Paribas 2,136Citibank (46,073)Credit Suisse International 230Deutsche Bank 14,048Goldman Sachs (1,409)HSBC Bank (834)JPMorgan Chase Bank (169)Morgan Stanley 471The Bank of New York Mellon 5UBS 774

(33,648)

Note 6 — Open positions on financial future contractsAs at December 31, 2016, the Company had entered into the following outstanding contracts:


Number ofcontracts

purchased/(sold)

Description Counterparty Tradingcurrency

CommitmentUSD


USD

Bond Future(20) U.S. Treasury 10 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (2,485,625) 5,469

Currency Future407 USD/BRL Future, Feb. 2017 CM Capital Markets CCTVM BRL 20,496,909 (219,050)

Deposit Future(65) BM&F, One-Day Interbank Deposits Future, Jan. 2017 CM Capital Markets CCTVM BRL (1,995,088) (94,448)

(3) BM&F, One-Day Interbank Deposits Future, Jan. 2018 CM Capital Markets CCTVM BRL (82,674) (927)(285) BM&F, One-Day Interbank Deposits Future, Jan. 2021 CM Capital Markets CCTVM BRL (5,705,377) (180,377)

(5) BM&F, One-Day Interbank Deposits Future, Jan. 2023 CM Capital Markets CCTVM BRL (79,650) (1,722)

(277,474)

Equity Future(100) BOVESPA Index Future, Feb. 2017 CM Capital Markets CCTVM BRL (1,876,763) (29,901)

(520,956)


Number ofcontracts

purchased/(sold)


CommitmentEUR


EUR

Bond Future(30) Euro-BTP Future, Mar. 2017 JPMorgan Chase Bank EUR (4,059,300) (67,258)177 3 Yr. Korea Treasury Bond Future, Mar. 2017 JPMorgan Chase Bank KRW 15,267,490 11,147(46) 10 Yr. Korea Treasury Bond Future, Mar. 2017 JPMorgan Chase Bank KRW (4,559,175) (9,053)

(65,164)


Number ofcontracts

purchased/(sold)


CommitmentEUR


EUR

Bond Future(42) Euro-BTP Future, Mar. 2017 JPMorgan Chase Bank EUR (5,683,020) (94,096)246 3 Yr. Korea Treasury Bond Future, Mar. 2017 JPMorgan Chase Bank KRW 21,219,223 15,493






Franklin Diversified Conservative Fund (continued)Number ofcontracts

purchased/(sold)


CommitmentEUR


EUR

(64) 10 Yr. Korea Treasury Bond Future, Mar. 2017 JPMorgan Chase Bank KRW (6,343,200) (12,596)

(91,199)


Number ofcontracts

purchased/(sold)


CommitmentEUR


EUR

Bond Future(15) Euro-BTP Future, Mar. 2017 JPMorgan Chase Bank EUR (2,029,650) (33,629)86 3 Yr. Korea Treasury Bond Future, Mar. 2017 JPMorgan Chase Bank KRW 7,418,102 5,416

(22) 10 Yr. Korea Treasury Bond Future, Mar. 2017 JPMorgan Chase Bank KRW (2,180,475) (4,330)

(32,543)

Franklin European Income Fund

Number ofcontracts

purchased/(sold)


CommitmentEUR


EUR

Equity Future(105) STOXX Europe 600 Index Future, Mar. 2017 JPMorgan Chase Bank EUR (1,882,650) (27,300)


Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

Bond Future69 Australia 10 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank AUD 6,360,352 42,33257 Canada 10 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank CAD 5,837,958 (56,881)

(21) Euro-Bund Future, Mar. 2017 JPMorgan Chase Bank EUR (3,627,091) (52,624)14 Euro-OAT Future, Mar. 2017 JPMorgan Chase Bank EUR 2,236,430 20,47660 Long Gilt Future, Mar. 2017 JPMorgan Chase Bank GBP 9,300,222 237,254

(10) U.S. Long Bond Treasury Future, Mar. 2017 JPMorgan Chase Bank USD (1,506,563) (1,250)(339) U.S. Treasury 2 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (73,457,062) 14,625(553) U.S. Treasury 5 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (65,068,227) 169,206

(39) U.S. Treasury 10 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (4,846,969) (18,531)(152) U.S. Treasury Ultra 10 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (20,377,500) 12,472

367,079


Number ofcontracts

purchased/(sold)


CommitmentEUR


EUR

Bond Future(40) Euro-BTP Future, Mar. 2017 JPMorgan Chase Bank EUR (5,412,400) (89,677)238 3 Yr. Korea Treasury Bond Future, Mar. 2017 JPMorgan Chase Bank KRW 20,529,167 14,989(62) 10 Yr. Korea Treasury Bond Future, Mar. 2017 JPMorgan Chase Bank KRW (6,144,975) (12,202)

(86,890)


Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

Bond Future(30) Euro-BOBL Future, Mar. 2017 Deutsche Bank EUR (4,219,969) (20,146)(25) U.S. Treasury 5 Yr. Note Future, Mar. 2017 Deutsche Bank USD (2,941,601) (89)(11) U.S. Treasury 10 Yr. Note Future, Mar. 2017 Deutsche Bank USD (1,367,094) (30)(17) CME Ultra Long Term U.S. Treasury Bond Future, Mar.

2017 JPMorgan Chase Bank USD (2,724,250) (717)(7) Euro-BOBL Future, Mar. 2017 JPMorgan Chase Bank EUR (984,659) (9,446)(3) Euro-BTP Future, Mar. 2017 JPMorgan Chase Bank EUR (427,302) (2,806)(9) Euro-BUXL 30 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank EUR (1,643,903) (30,421)

(11) U.S. Long Bond Treasury Future, Mar. 2017 JPMorgan Chase Bank USD (1,657,220) (2,301)(44) U.S. Treasury 5 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (5,177,219) (42,708)(79) U.S. Treasury 10 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (9,818,220) 50,044(22) U.S. Treasury Ultra 10 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (2,949,376) 18,810

(122) 3-month EUR LIBOR Future, Jun. 2018 Morgan Stanley EUR (32,179,669) 920(508) 90 day Eurodollar Future, Jun. 2018 Morgan Stanley USD (124,764,800) 109,486



Note 6 — Open positions on financial future contracts (continued)



Franklin K2 Alternative Strategies Fund (continued)Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

(84) 90 day Sterling Future, Jun. 2018 Morgan Stanley GBP (12,869,028) (13,463)(50) Australia 10 Yr. Bond Future, Mar. 2017 Morgan Stanley AUD (4,609,266) (24,233)(81) Canada 10 Yr. Bond Future, Mar. 2017 Morgan Stanley CAD (8,296,992) 53,932207 Euro-BOBL Future, Mar. 2017 Morgan Stanley EUR 29,117,789 173,233

74 Euro-Bund Future, Mar. 2017 Morgan Stanley EUR 12,786,624 33,698247 Euro-Schatz Future, Mar. 2017 Morgan Stanley EUR 29,195,908 23,394

8 Japan 10 Yr. Bond Future, Mar. 2017 Morgan Stanley JPY 10,283,808 30,49192 Long Gilt Future, Mar. 2017 Morgan Stanley GBP 14,266,715 213,38712 mini-10 Yr. JGB Future, Mar. 2017 Morgan Stanley JPY 1,542,983 5,970

(61) U.S. Long Bond Treasury Future, Mar. 2017 Morgan Stanley USD (9,190,030) 27,981(134) U.S. Treasury 2 Yr. Note Future, Mar. 2017 Morgan Stanley USD (29,036,132) 8,599(248) U.S. Treasury 5 Yr. Note Future, Mar. 2017 Morgan Stanley USD (29,180,684) 40,407(190) U.S. Treasury 10 Yr. Note Future, Mar. 2017 Morgan Stanley USD (23,613,445) 5,915

649,907

Equity Future13 CBOE VIX Index Future, Feb. 2017 JPMorgan Chase Bank USD 215,475 (13,261)

(58) S&P 500 E-mini Index Future, Mar. 2017 JPMorgan Chase Bank USD (6,484,980) 57,80982 CAC 40 Index Future, Jan. 2017 Morgan Stanley EUR 4,197,605 74,15920 DAX Index Future, Mar. 2017 Morgan Stanley EUR 6,034,320 40,464

164 DJIA mini E-cbot Index Future, Mar. 2017 Morgan Stanley USD 16,231,080 130,1818 Euro STOXX 50 Index Future, Mar. 2017 Morgan Stanley EUR 275,952 (70,103)

112 FTSE 100 Index Future, Mar. 2017 Morgan Stanley GBP 9,731,021 31,1136 Hang Seng Index Future, Jan. 2017 Morgan Stanley HKD 849,648 12,662

53 Nasdaq 100 E-mini Index Future, Mar. 2017 Morgan Stanley USD 5,155,840 (28,418)67 Nikkei 225 Index Future, Mar. 2017 Morgan Stanley JPY 10,949,295 50,43796 Russell 2000 mini Index Future, Mar. 2017 Morgan Stanley USD 6,513,120 (90,686)26 S&P 500 E-mini Index Future, Mar. 2017 Morgan Stanley USD 2,907,060 (34,345)

(73) STOXX Europe 600 Index Future, Mar. 2017 Morgan Stanley EUR (643,564) 1,44588 Topix Index Future, Mar. 2017 Morgan Stanley JPY 11,429,638 110,006

271,463

921,370


Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

Bond Future(5) 90 day Bank Bill Future, Mar. 2017 JPMorgan Chase Bank AUD (3,592,040) 187(9) 90 day Bank Bill Future, Jun. 2017 JPMorgan Chase Bank AUD (6,465,042) 428(7) 90 day Bank Bill Future, Sep. 2017 JPMorgan Chase Bank AUD (5,027,624) 660(6) 90 day Bank Bill Future, Dec. 2017 JPMorgan Chase Bank AUD (4,308,546) 1,032(3) 90 day Bank Bill Future, Mar. 2018 JPMorgan Chase Bank AUD (2,153,796) 612(2) 90 day Eurodollar Future, Jun. 2017 JPMorgan Chase Bank USD (493,976) 346(6) 90 day Eurodollar Future, Sep. 2017 JPMorgan Chase Bank USD (1,479,677) 1,649(5) 90 day Eurodollar Future, Dec. 2017 JPMorgan Chase Bank USD (1,231,000) (36)(5) 90 day Eurodollar Future, Mar. 2018 JPMorgan Chase Bank USD (1,229,500) 926(4) 90 day Eurodollar Future, Jun. 2018 JPMorgan Chase Bank USD (982,400) 479(5) 90 day Eurodollar Future, Sep. 2018 JPMorgan Chase Bank USD (1,226,565) 889(3) 90 day Eurodollar Future, Dec. 2018 JPMorgan Chase Bank USD (735,000) 655(3) 90 day Eurodollar Future, Mar. 2019 JPMorgan Chase Bank USD (734,325) 831(3) 90 day Eurodollar Future, Jun. 2019 JPMorgan Chase Bank USD (733,689) 518(1) 90 day Sterling Future, Dec. 2017 JPMorgan Chase Bank GBP (153,326) (155)(1) 90 day Sterling Future, Mar. 2018 JPMorgan Chase Bank GBP (153,264) (155)(2) 90 day Sterling Future, Jun. 2018 JPMorgan Chase Bank GBP (306,406) (418)(2) 90 day Sterling Future, Sep. 2018 JPMorgan Chase Bank GBP (306,252) (464)(3) 90 day Sterling Future, Dec. 2018 JPMorgan Chase Bank GBP (459,147) (634)(2) 90 day Sterling Future, Jun. 2019 JPMorgan Chase Bank GBP (305,728) (402)

(18) Australia 3 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank AUD (1,447,923) 3,149(5) Australia 10 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank AUD (460,926) 1,318(2) Canada 10 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank CAD (204,864) (696)4 Euro-BOBL Future, Mar. 2017 JPMorgan Chase Bank EUR 562,664 1,739

(1) Euro-BTP Future, Mar. 2017 JPMorgan Chase Bank EUR (142,434) (3,086)2 Euro-Bund Future, Mar. 2017 JPMorgan Chase Bank EUR 345,584 2,186

(1) Euro-BUXL 30 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank EUR (182,656) (2,339)2 Euro-Schatz Future, Mar. 2017 JPMorgan Chase Bank EUR 236,404 2281 mini-10 Yr. JGB Future, Mar. 2017 JPMorgan Chase Bank JPY 128,582 359

(2) U.S. Long Bond Treasury Future, Mar. 2017 JPMorgan Chase Bank USD (301,312) 474(2) U.S. Treasury 2 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (433,376) (35)(5) U.S. Treasury 5 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (588,320) 1,146(7) U.S. Treasury 10 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (869,967) 1,45915 3-month EUR LIBOR Future, Jun. 2018 Morgan Stanley EUR 3,956,517 819

(34) 90 day Eurodollar Future, Jun. 2018 Morgan Stanley USD (8,350,400) 11,718






Franklin K2 Global Macro Opportunities Fund (continued)Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

20 90 day Sterling Future, Jun. 2018 Morgan Stanley GBP 3,064,055 2,833(3) Australia 10 Yr. Bond Future, Mar. 2017 Morgan Stanley AUD (276,555) (2,097)2 Canada 10 Yr. Bond Future, Mar. 2017 Morgan Stanley CAD 204,864 1,367

12 Euro-BOBL Future, Mar. 2017 Morgan Stanley EUR 1,687,988 11,2531 Euro-Bund Future, Mar. 2017 Morgan Stanley EUR 172,792 7896 Euro-Schatz Future, Mar. 2017 Morgan Stanley EUR 709,212 (68)2 Long Gilt Future, Mar. 2017 Morgan Stanley GBP 310,146 4,201

(6) U.S. Long Bond Treasury Future, Mar. 2017 Morgan Stanley USD (903,937) 5,302(6) U.S. Treasury 2 Yr. Note Future, Mar. 2017 Morgan Stanley USD (1,300,126) (148)

(14) U.S. Treasury 5 Yr. Note Future, Mar. 2017 Morgan Stanley USD (1,647,296) (3,246)(14) U.S. Treasury 10 Yr. Note Future, Mar. 2017 Morgan Stanley USD (1,739,936) 729

46,302

Currency Future4 AUD/USD Future, Mar. 2017 JPMorgan Chase Bank USD 288,080 (9,430)

(1) CAD/USD Future, Mar. 2017 JPMorgan Chase Bank USD (74,415) (557)(9) CHF/USD Future, Mar. 2017 JPMorgan Chase Bank USD (1,109,925) 4,215(1) EUR/USD Future, Mar. 2017 JPMorgan Chase Bank USD (132,175) (1,184)(4) GBP/USD Future, Mar. 2017 JPMorgan Chase Bank USD (308,952) (2,154)

(12) JPY/USD Future, Mar. 2017 JPMorgan Chase Bank USD (1,289,552) 7,714

(1,396)

Equity Future2 AEX Index Future, Jan. 2017 JPMorgan Chase Bank EUR 203,414 2,3764 CAC 40 Index Future, Jan. 2017 JPMorgan Chase Bank EUR 204,760 2,7141 DAX Index Future, Mar. 2017 JPMorgan Chase Bank EUR 301,716 5,3934 DJIA mini E-cbot Index Future, Mar. 2017 JPMorgan Chase Bank USD 395,880 3,7456 Euro STOXX 50 Index Future, Mar. 2017 JPMorgan Chase Bank EUR 206,971 3,9701 FTSE 100 Index Future, Mar. 2017 JPMorgan Chase Bank GBP 86,884 2,0871 FTSE MIB Index Future, Mar. 2017 JPMorgan Chase Bank EUR 101,081 1,313

(3) FTSE/JSE Africa Top 40 Index Future, Mar. 2017 JPMorgan Chase Bank ZAR (96,783) 1,1381 Hang Seng China Enterprises Index Future, Jan. 2017 JPMorgan Chase Bank HKD 60,533 8221 mini MSCI EAFE Index Future, Mar. 2017 JPMorgan Chase Bank USD 83,780 (286)4 mini MSCI Emerging Markets Index Future, Mar. 2017 JPMorgan Chase Bank USD 171,780 (4,289)2 Nasdaq 100 E-mini Index Future, Mar. 2017 JPMorgan Chase Bank USD 194,560 (1,210)2 Nikkei 225 Index Future, Mar. 2017 JPMorgan Chase Bank JPY 163,166 6,4802 Nikkei 225 Index Future, Mar. 2017 JPMorgan Chase Bank USD 191,100 1,794

11 OMXS 30 Index Future, Jan. 2017 JPMorgan Chase Bank SEK 183,403 (2,674)4 Russell 2000 mini Index Future, Mar. 2017 JPMorgan Chase Bank USD 271,380 (738)2 S&P 500 E-mini Index Future, Mar. 2017 JPMorgan Chase Bank USD 223,620 (645)

(2) S&P 500 E-mini Index Future, Mar. 2017 JPMorgan Chase Bank USD (223,620) 2,9952 S&P MidCap 400 E-mini Index Future, Mar. 2017 JPMorgan Chase Bank USD 331,820 (5,442)3 S&P/TSX 60 VIX Index Future, Mar. 2017 JPMorgan Chase Bank CAD 400,803 7825 SPI 200 Index Future, Mar. 2017 JPMorgan Chase Bank AUD 507,951 8,1122 Topix Index Future, Mar. 2017 JPMorgan Chase Bank JPY 259,764 7,7371 CAC 40 Index Future, Jan. 2017 Morgan Stanley EUR 51,190 984

(2) DJIA mini E-cbot Index Future, Mar. 2017 Morgan Stanley USD (197,940) (49)(11) Euro STOXX 50 Index Future, Mar. 2017 Morgan Stanley EUR (379,448) (6,396)

5 FTSE 100 Index Future, Mar. 2017 Morgan Stanley GBP 434,420 7,736(4) Hang Seng Index Future, Jan. 2017 Morgan Stanley HKD (566,432) (8,064)1 Nasdaq 100 E-mini Index Future, Mar. 2017 Morgan Stanley USD 97,280 (1,727)

(1) Nikkei 225 Index Future, Mar. 2017 Morgan Stanley JPY (163,422) (6,166)(1) Russell 2000 mini Index Future, Mar. 2017 Morgan Stanley USD (67,845) 334(7) S&P 500 E-mini Index Future, Mar. 2017 Morgan Stanley USD (782,670) 907

23,733

68,639


Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

Bond Future(1) Euro-BOBL Future, Mar. 2017 JPMorgan Chase Bank EUR (140,666) (1,348)(1) U.S. Long Bond Treasury Future, Mar. 2017 JPMorgan Chase Bank USD (150,656) (813)

(2,161)

Equity Future(3) S&P 500 E-mini Index Future, Mar. 2017 JPMorgan Chase Bank USD (335,430) 4,498

2,337







Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

Bond Future75 CME Ultra Long Term U.S. Treasury Bond Future, Mar.

2017 JPMorgan Chase Bank USD 12,018,750 (156,036)22 Euro-Bund Future, Mar. 2017 JPMorgan Chase Bank EUR 3,799,810 51,62177 Long Gilt Future, Mar. 2017 JPMorgan Chase Bank GBP 11,935,284 304,47656 U.S. Treasury Ultra 10 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD 7,507,500 (56,000)

144,061


Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

Bond Future32 Canada 10 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank CAD 3,277,450 (31,933)(9) CME Ultra Long Term U.S. Treasury Bond Future, Mar.

2017 JPMorgan Chase Bank USD (1,442,250) 22,781882 U.S. Treasury 2 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD 191,118,375 (68,766)

(296) U.S. Treasury 5 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (34,828,562) 118,920

41,002


Number ofcontracts

purchased/(sold)


CommitmentUSD


USD

Bond Future19 Australia 10 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank AUD 1,751,401 11,656

7 Canada 10 Yr. Bond Future, Mar. 2017 JPMorgan Chase Bank CAD 716,942 (6,985)17 CME Ultra Long Term U.S. Treasury Bond Future, Mar.

2017 JPMorgan Chase Bank USD 2,724,250 (35,368)(10) Euro-Bund Future, Mar. 2017 JPMorgan Chase Bank EUR (1,727,186) (25,059)11 Long Gilt Future, Mar. 2017 JPMorgan Chase Bank GBP 1,705,041 43,497

(21) U.S. Treasury Ultra 10 Yr. Note Future, Mar. 2017 JPMorgan Chase Bank USD (2,815,313) 19,359

7,100

Note 7 — Open positions on interest rate swap contractsAs at December 31, 2016 the Company had entered into the following outstanding contracts:


Notionalamount

Description Counterparty Maturitydate

Tradingcurrency


USD

9,790,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.75% Citibank 15-Mar-24 USD 517,147

Franklin Global Fundamental Strategies Fund

Notionalamount


Tradingcurrency


USD

5,610,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.7305% Citibank 07-Jul-24 USD (213,629)

23,630,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.91422% Citibank 22-Jan-25 USD 555,374





5,820,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.81667% Citibank 03-Feb-25 USD 181,488

1,010,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.34675% Citibank 25-Feb-41 USD (335,577)





As at December 31, 2016 the Company had entered into the following outstanding contracts:

Franklin Global Fundamental Strategies Fund (continued)Notionalamount


Tradingcurrency


USD

30,700,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.3782% Citibank 18-Nov-46 USD 1,441,893

600,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.523% Deutsche Bank 28-Mar-21 USD (40,892)

430,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.775% Deutsche Bank 04-Oct-23 USD (17,568)




430,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.765% HSBC Bank 07-Oct-23 USD (17,288)

210,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.675% HSBC Bank 07-Oct-43 USD (46,365)

330,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.5575% JPMorgan Chase Bank 04-Mar-21 USD (22,685)

830,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.215% JPMorgan Chase Bank 11-Jan-41 USD (254,383)

1,010,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.3494% JPMorgan Chase Bank 25-Feb-41 USD (336,083)

760,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.3201% JPMorgan Chase Bank 28-Feb-41 USD (250,011)

250,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.299% JPMorgan Chase Bank 01-Mar-41 USD (80,876)

1,534,149


Notionalamount


Tradingcurrency


USD

25,578,000 Receiving fixed rate 6.13%Paying floating rate 4-week Mexico Interbank TIIE Bank of America 03-Jul-26 MXN (154,038)

8,000,000 Receiving fixed rate 6.135%Paying floating rate 4-week Mexico Interbank TIIE Deutsche Bank 03-Jul-26 MXN (48,043)

1,483,200 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.41% Deutsche Bank 18-Jul-26 USD 107,957

680,000 Receiving floating rate 3-month ZAR LIBARPaying fixed rate 7.72% JPMorgan Chase Bank 17-Apr-25 ZAR 1,372

685,614 Receiving floating rate 6-month GBP LIBORPaying fixed rate 1.555% JPMorgan Chase Bank 28-Nov-46 GBP (28,149)


306,623 Receiving floating rate 6-month GBP LIBORPaying fixed rate 1.596% JPMorgan Chase Bank 01-Dec-46 GBP (16,626)

(165,995)


Notionalamount


Tradingcurrency


USD



37,720 Receiving floating rate 6-month GBP LIBORPaying fixed rate 1.596% JPMorgan Chase Bank 01-Dec-46 GBP (2,045)

(8,379)


Notionalamount


Tradingcurrency


USD

26,680,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.75% Citibank 15-Mar-24 USD 1,409,346



Note 7 — Open positions on interest rate swap contracts (continued)



Templeton Asian Bond Fund

Notionalamount


Tradingcurrency


USD

23,500,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.775% Deutsche Bank 04-Oct-23 USD (960,142)


11,430,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.668% Deutsche Bank 04-Oct-43 USD (2,507,128)


23,500,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.765% HSBC Bank 07-Oct-23 USD (944,788)

11,430,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.675% HSBC Bank 07-Oct-43 USD (2,523,573)

151,580,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.391% JPMorgan Chase Bank 04-May-21 USD (9,620,780)

(20,096,918)

Templeton Emerging Markets Balanced Fund

Notionalamount


Tradingcurrency


USD

1,110,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 0.9255% Citibank 17-Oct-17 USD 1,812

960,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.91422% Citibank 22-Jan-25 USD 22,563





230,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.81667% Citibank 03-Feb-25 USD 7,172

340,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.018% JPMorgan Chase Bank 22-Aug-23 USD (18,800)


5,588

Templeton Emerging Markets Bond Fund

Notionalamount


Tradingcurrency


USD

62,460,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.44% Citibank 21-Apr-21 USD (4,074,765)

217,280,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.91422% Citibank 22-Jan-25 USD 5,106,720





111,000,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.43% Citibank 25-Nov-46 USD 3,951,556





10,460,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.765% HSBC Bank 07-Oct-23 USD (420,531)






Templeton Emerging Markets Bond Fund (continued)Notionalamount


Tradingcurrency


USD


10,264,147

Templeton Global Bond Fund

Notionalamount


Tradingcurrency


USD

1,954,080,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 0.9255% Citibank 17-Oct-17 USD 3,189,053

367,690,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.7305% Citibank 07-Jul-24 USD (14,001,640)






178,930,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.81667% Citibank 03-Feb-25 USD 5,579,656

34,400,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.3675% Citibank 20-Dec-40 USD (11,507,408)

186,490,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.34675% Citibank 25-Feb-41 USD (61,962,150)

365,200,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.523% Deutsche Bank 28-Mar-21 USD (24,889,510)

94,430,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.5575% JPMorgan Chase Bank 04-Mar-21 USD (6,491,397)

263,000,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.9625% JPMorgan Chase Bank 23-Nov-40 USD (67,806,876)

31,200,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.153% JPMorgan Chase Bank 10-Dec-40 USD (9,171,141)

194,540,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.215% JPMorgan Chase Bank 11-Jan-41 USD (59,623,674)

186,490,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.3494% JPMorgan Chase Bank 25-Feb-41 USD (62,055,521)



(319,461,192)

Templeton Global Bond (Euro) Fund

Notionalamount


Tradingcurrency


EUR

60,180,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.9965% Citibank 28-Apr-25 USD 1,091,420

13,890,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.3865% Citibank 28-Apr-45 USD 574,202

10,700,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.3782% Citibank 18-Nov-46 USD 477,617

2,143,239






Templeton Global High Yield Fund

Notionalamount


Tradingcurrency


USD


1,330,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.44% Citibank 21-Apr-21 USD (86,766)




87,665

Templeton Global Income Fund

Notionalamount


Tradingcurrency


USD


22,820,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.7305% Citibank 07-Jul-24 USD (868,986)







1,430,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.018% JPMorgan Chase Bank 22-Aug-23 USD (79,070)


432,622

Templeton Global Total Return Fund

Notionalamount


Tradingcurrency


USD

882,420,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 0.9255% Citibank 17-Oct-17 USD 1,440,107

225,640,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.44% Citibank 21-Apr-21 USD (14,720,299)

840,860,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.7305% Citibank 07-Jul-24 USD (32,019,959)






49,740,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 1.81667% Citibank 03-Feb-25 USD 1,551,065



45,640,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 4.34675% Citibank 25-Feb-41 USD (15,164,097)

88,240,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.523% Deutsche Bank 28-Mar-21 USD (6,013,829)






Templeton Global Total Return Fund (continued)Notionalamount


Tradingcurrency


USD







156,000,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.391% JPMorgan Chase Bank 04-May-21 USD (9,901,317)

83,070,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 3.0755% JPMorgan Chase Bank 14-Jun-21 USD (4,209,906)

403,420,000 Receiving floating rate 3-month USD BBA LIBORPaying fixed rate 2.0362% JPMorgan Chase Bank 23-Mar-25 USD 6,208,702




(282,688,284)

Note 8 — Open positions on inflation swap contractsAs at December 31, 2016 the Company had entered into the following outstanding contracts:


Notionalamount


Tradingcurrency


USD

7,000,000 Receiving floating rate CDIPaying floating rate IPCA BM&F BOVESPA SA 17-Aug-20 BRL 275,058

7,000,000 Receiving floating rate IPCAPaying floating rate CDI BM&F BOVESPA SA 17-Aug-20 BRL (365,027)

6,040,000 Receiving floating rate CDIPaying floating rate IPCA BM&F BOVESPA SA 15-Aug-22 BRL 304,549

6,040,000 Receiving floating rate IPCAPaying floating rate CDI BM&F BOVESPA SA 15-Aug-22 BRL (311,887)

5,000,000 Receiving floating rate CDIPaying floating rate IPCA BM&F BOVESPA SA 15-Dec-27 BRL 584,693

5,000,000 Receiving floating rate IPCAPaying floating rate CDI BM&F BOVESPA SA 15-Dec-27 BRL (389,886)

97,500


Notionalamount


Tradingcurrency


USD

7,300,000 Receiving floating rate US CPI Urban Consumers NSAPaying fixed rate 1.782% JPMorgan Chase Bank 27-May-24 USD 270,502







Notionalamount


Tradingcurrency


USD

1,673,451 Receiving fixed rate 11.30%Paying floating rate CDI Bank of America 02-Jan-20 BRL 1,366

1,661,760 Receiving fixed rate 11.27%Paying floating rate CDI Bank of America 02-Jan-20 BRL 889

3,241,476 Receiving fixed rate 12.045%Paying floating rate CDI Morgan Stanley 02-Jan-20 BRL 23,278

25,533


Notionalamount


Tradingcurrency


USD

708,795 Receiving fixed rate 11.73%Paying floating rate CDI Bank of America 02-Jan-20 BRL 3,436


Notionalamount


Tradingcurrency


USD

709,973 Receiving fixed rate 11.83%Paying floating rate CDI Bank of America 02-Jan-20 BRL 4,203

Note 9 — Open positions on cross currency swap contractsAs at December 31, 2016, the Company had entered into the following outstanding contracts:


Description Notionalamount

Counterparty Maturitydate

Tradingcurrency


USD

Receiving floating rate 3-month USD BBA LIBOR +0.36% 2,530,000 USDPaying floating rate 3-month EUR LIBOR 2,300,000 Citibank 18-Oct-19 EUR 107,762Receiving fixed rate 3.045% 1,008,000 USDPaying fixed rate 1.125% 900,000 Citibank 15-Dec-21 EUR 43,291Receiving floating rate 3-month USD BBA LIBOR +1.53% 1,810,500 USDPaying fixed rate 1.00% 1,700,000 Citibank 03-Mar-22 EUR 21,137Receiving fixed rate 3.38% 1,232,000 USDPaying fixed rate 1.625% 1,100,000 Citibank 11-Jan-27 EUR 13,967

186,157


Description Notionalamount

Counterparty Maturitydate

Tradingcurrency


USD

Receiving fixed rate 3.045% 336,000 USDPaying fixed rate 1.125% 300,000 Citibank 15-Dec-21 EUR 14,430

Note 10 — Open positions on total return swap contractsAs at December 31, 2016 the Company had entered into the following outstanding contracts:


Tradingcurrency

Notionalamount

Fund receives Fund pays Counterparty Maturitydate


EUR

JPY 204,432,414 Performance of Barclays JapanQuality Equity Market HedgedIndex

0.70% per annum of theNotional Amount

Barclays Bank 15-Nov-17 14,368

JPY 293,932,589 Performance of Barclays JapanValue Equity Market HedgedIndex



GBP 1,244,074 Performance of Barclays UKLow Volatilty Equity MarketHedged Index





Note 8 — Open positions on inflation swap contracts (continued)



Franklin Diversified Balanced Fund (continued)Tradingcurrency

Notionalamount



EUR

GBP 2,075,720 Performance of Barclays UKValue Equity Market HedgedIndex


Barclays Bank 15-Nov-17 (5,409)

USD 2,529,007 Performance of Barclays USLow Volatility Market HedgedIndex



USD 1,618,313 Performance of Barclays USMomentum Market HedgedIndex



EUR 3,056,381 Performance of Citi PureEarnings Momentum EuropeLong-Short Index


Citibank 10-Feb-17 2,450

USD 3,501,715 Performance of Citi PureQuality US Long-Short NetTotal Return Index



USD 8,000,000 Performance of CitiCommodities Congestion/Liquidity Navigator (E) 4xLeveraged Index


Citibank 20-Sep-17 (13,223)

USD 3,500,000 Performance of JPMorganAlpha Basket 110 Index


JPMorgan Chase Bank 13-Apr-17 50,427

USD 5,407,582 Performance of SGI VI SMARTBETA Index

3-month USD BBA LIBOR +0.50%

Societe Generale 01-Mar-17 (653,916)

EUR 1,031,464 Performance of SGI PH LVEurope Index

3-month EUR LIBOR + 0.10% Societe Generale 14-Nov-17 30,606

EUR 1,139,393 Performance of SGI PH QltyEurope Index


EUR 2,350,797 Performance of SGI PH VLEurope Index


EUR 1,165,172 Performance of SGI PriceMomentum Europe Index

3-month EUR LIBOR + 0.10% Societe Generale 14-Nov-17 (14,974)

(365,307)


Tradingcurrency

Notionalamount



EUR

































Note 10 — Open positions on total return swap contracts (continued)



Franklin Diversified Conservative Fund (continued)Tradingcurrency

Notionalamount



EUR




EUR 1,074,449 Performance of SGI PH LVEurope Index








(62,873)


Tradingcurrency

Notionalamount



EUR







GBP 362,855 Performance of Barclays UKLow Volatilty Equity MarketHedged Index



GBP 605,441 Performance of Barclays UKValue Equity Market HedgedIndex



USD 737,684 Performance of Barclays USLow Volatility Market HedgedIndex



USD 472,055 Performance of Barclays USMomentum Market HedgedIndex



EUR 891,444 Performance of Citi PureEarnings Momentum EuropeLong-Short Index


Citibank 10-Feb-17 715













EUR 300,805 Performance of SGI PH LVEurope Index


EUR 332,319 Performance of SGI PH QltyEurope Index


EUR 685,641 Performance of SGI PH VLEurope Index


EUR 339,869 Performance of SGI PriceMomentum Europe Index


(214,121)


Tradingcurrency

Notionalamount



USD

USD 3,400,000 Performance of Markit iBoxxUSD Liquid Leveraged LoansIndex Series 1 Version 1

3-month USD BBA LIBOR Citibank 20-Jun-17 (54,847)






Franklin Flexible Alpha Bond Fund (continued)Tradingcurrency

Notionalamount



USD


3-month USD BBA LIBOR Morgan Stanley 20-Jun-17 (35,808)

(90,655)


Tradingcurrency

Notionalamount



EUR


































EUR 945,493 Performance of SGI PH LVEurope Index








(268,521)


Tradingcurrency

Notionalamount



USD

EUR 423,437 1-month EUR LIBOR -0.35% Performance of DeutscheEuroshop AG

BNP Paribas 29-Nov-17 (4,438)

EUR 1,383,263 1-month EUR LIBOR -0.35% Performance of DeutscheWohnen AG

BNP Paribas 29-Nov-17 244

EUR 195,084 1-month EUR LIBOR -0.35% Performance of EvonikIndustries AG


EUR 128,767 1-month EUR LIBOR -0.35% Performance of Fresenius SEand Co. KGaA


EUR 37,518 1-month EUR LIBOR -0.35% Performance of Galp EnergiaSGPS SA

BNP Paribas 29-Nov-17 (83)

GBP 160,189 1-month GBP LIBOR -0.35% Performance of British LandCo. PLC







Franklin K2 Alternative Strategies Fund (continued)Tradingcurrency

Notionalamount



USD

JPY 12,513,500 1-month JPY LIBOR -0.40% Performance of Terumo Corp. BNP Paribas 29-Nov-17 251USD 25,668,607 Performance of AYC Finance

Ltd., 0.50%, 05/02/191-month USD LIBOR +1.00% BNP Paribas 29-Nov-17 2,221

GBP 72,669,862 Performance of British LandJersey Ltd., cvt., senior note,Reg S, 1.50%, 09/10/17

1-month GBP LIBOR +0.80% BNP Paribas 29-Nov-17 157

EUR 51,439,282 Performance of DeutscheEuroshop AG, 1.75%,11/20/17

1-month EUR LIBOR +0.80% BNP Paribas 29-Nov-17 2,858

EUR 174,793,867 Performance of DeutscheWohnen AG, 0.50%, 11/22/20


EUR 15,236,000 Performance of Fresenius SE &Co. KGaA, cvt., senior note,zero cpn., 09/24/19


EUR 81,939,041 Performance of Parpublica -Participacoes Publicas SGPSSA, cvt., senior note, Reg S,5.25%, 09/28/17

1-month EUR LIBOR +0.40% BNP Paribas 29-Nov-17 (1,525)

EUR 102,650,000 Performance of RAG-Stiftung,zero cpn., 12/31/18

1-month EUR LIBOR +0.80% BNP Paribas 29-Nov-17 (137)

EUR 17,775,217 Performance of Sacyr SA,4.00%, 05/08/19


JPY 2,435,000,000 Performance of Terumo Corp.,zero cpn., 12/04/19

1-month JPY LIBOR +0.75% BNP Paribas 29-Nov-17 (336)

USD 28,651 US Overnight Bank FundingRate -0.30%

Performance of AcordaTherapeutics Inc.



Performance of DepoMed Inc. BNP Paribas 29-Nov-17 4,308


Performance of DISH NetworkCorp.

BNP Paribas 29-Nov-17 3,481


Performance of HealthSouthCorp.



Performance of Hess Corp. BNP Paribas 29-Nov-17 8,014


Performance of Pattern EnergyGroup Inc.



Performance ofServiceNow Inc.


USD 8,959,600 Performance of AcordaTherapeutics Inc., cvt., seniornote, 1.75%, 06/15/21

1-month USD LIBOR +0.75% BNP Paribas 30-Nov-17 1,181

USD 35,763,876 Performance of BroadSoft Inc.,cvt., senior note, 144A,1.00%, 09/01/22

1-month USD LIBOR +0.75% BNP Paribas 30-Nov-17 (476)

USD 27,322,014 Performance of Ctrip.comInternational Ltd., cvt., seniornote, 1.25%, 10/15/18

1-month USD LIBOR +0.75% BNP Paribas 30-Nov-17 980

USD 53,974,083 Performance of Depomed Inc.,cvt., senior note, 2.50%,09/01/21

1-month USD LIBOR +0.75% BNP Paribas 30-Nov-17 (9,174)

USD 20,354,950 Performance of Dish NetworkCorp., 3.375%, 08/15/26


USD 51,315,000 Performance of EuronetWorldwide Inc., 1.50%,10/01/44


USD 13,848,507 Performance of General CableCorp., sub. bond, FRN, 4.50%,11/15/29


USD 48,926,125 Performance of HealthSouthCorp., cvt., senior bond,2.00%, 12/01/43


USD 667,949 Performance of Hess Corp.,cvt.,8.00%, pfd.


USD 92,274,944 Performance of Lam ResearchCorp., 1.25%, 05/15/18


USD 62,186,000 Performance ofServiceNow Inc., zero cpn.,11/01/18



Performance of BroadSoft Inc. BNP Paribas 30-Nov-17 5,389







Notionalamount



USD


Performance of Ctrip.comInternational Ltd., ADR



Performance of EuronetWorldwide Inc.



Performance of General CableCorp.






Performance of Hess Corp. BNP Paribas 30-Nov-17 11,211


Performance of Lam ResearchCorp.





JPY 4,767,100 1-month JPY LIBOR -0.40% Performance of Nippon LightMetal Holdings Co. Ltd.

BNP Paribas 27-Dec-17 165

JPY 3,759,600 1-month JPY LIBOR -0.40% Performance of TakashimayaCo. Ltd.

BNP Paribas 27-Dec-17 2,403

JPY 23,301,000 1-month JPY LIBOR -0.40% Performance of Terumo Corp. BNP Paribas 27-Dec-17 467JPY 21,384,120 1-month JPY LIBOR -0.40% Performance of Toray

Industries Inc.BNP Paribas 27-Dec-17 6,226

JPY 2,106,500,000 Performance of TakashimayaCo. Ltd., zero cpn., 12/11/20

1-month JPY LIBOR +0.75% BNP Paribas 27-Dec-17 (4,283)

JPY 3,742,500,000 Performance of Terumo Corp.,cvt., senior note, Reg S, zerocpn., 12/06/21

1-month JPY LIBOR +0.75% BNP Paribas 27-Dec-17 86

JPY 3,753,000,000 Performance of TorayIndustries Inc., zero cpn.,08/31/21

1-month JPY LIBOR +0.75% BNP Paribas 27-Dec-17 (6,885)

SGD 156,738 1-month SGD LIBOR -0.40% Performance of Capitaland Ltd. BNP Paribas 28-Dec-17 (717)USD 118,441 1-month USD LIBOR -4.00% Performance of Ayala Land Inc. BNP Paribas 28-Dec-17 (6,900)USD 55,496,949 Performance of AYC Finance

Ltd., 0.50%, 05/02/191-month USD LIBOR +1.00% BNP Paribas 28-Dec-17 4,801

SGD 174,213,699 Performance of CapitalandLtd., 1.95%, 10/17/23

1-month SGD LIBOR +0.90% BNP Paribas 28-Dec-17 2,611

USD 21,018,833 Performance ofCardtronics Inc., 1.00%,12/01/20

1-month USD LIBOR +0.75% BNP Paribas 28-Dec-17 401

USD 27,640,125 Performance of EuronetWorldwide Inc., 1.50%,10/01/44

1-month USD LIBOR +0.75% BNP Paribas 28-Dec-17 (1,568)

USD 20,024,315 Performance of Golar LNG Ltd.,cvt., 3.75%, 03/07/17

1-month USD LIBOR +0.80% BNP Paribas 28-Dec-17 551

USD 52,973,542 Performance of HealthSouthCorp., cvt., senior bond,2.00%, 12/01/43

1-month USD LIBOR +0.75% BNP Paribas 28-Dec-17 (6,363)


Performance of Cardtronics Inc. BNP Paribas 28-Dec-17 4,280









BNP Paribas 28-Dec-17 5,417

EUR 92,206 1-month EUR LIBOR -0.35% Performance of DeutscheWohnen AG


EUR 168,496 1-month EUR LIBOR -0.35% Performance of Fresenius SEand Co. KGaA

BNP Paribas 29-Dec-17 (1,338)


BNP Paribas 29-Dec-17 (215)

EUR 306,950 1-month EUR LIBOR -0.35% Performance of Siemens AG BNP Paribas 29-Dec-17 (2,766)EUR 4,688 1-month EUR LIBOR -0.50% Performance of Koninklijke

KPN NVBNP Paribas 29-Dec-17 (19)

EUR 168,596 1-month EUR LIBOR -0.50% Performance of Richter GedeonNyrt

BNP Paribas 29-Dec-17 (884)

EUR 7,501 1-month EUR LIBOR -2.00% Performance of Outokumpu OY BNP Paribas 29-Dec-17 (246)GBP 46,121 1-month GBP LIBOR -0.40% Performance of J Sainsbury

PLCBNP Paribas 29-Dec-17 (296)

SEK 307,570 1-month SEK LIBOR -0.50% Performance of Elekta AB, B BNP Paribas 29-Dec-17 (126)SEK 1,806,247,248 Performance of Elekta AB,

2.75%, 04/25/171-month SEK LIBOR +0.50% BNP Paribas 29-Dec-17 14,894







Notionalamount



USD

EUR 15,236,000 Performance of Fresenius SE &Co. KGaA, cvt., senior note,zero cpn., 09/24/19

1-month EUR LIBOR +0.80% BNP Paribas 29-Dec-17 1,058

GBP 20,651,624 Performance of J SainsburyPLC, 1.25%, 11/21/19

1-month GBP LIBOR +0.80% BNP Paribas 29-Dec-17 704

EUR 47,092,720 Performance of MagyarNemzeti Vagyonkezelo ZRT,cvt., senior note, Reg S,3.375%, 04/02/19

1-month EUR LIBOR +0.80% BNP Paribas 29-Dec-17 (53)

EUR 20,530,000 Performance of RAG-Stiftung,zero cpn., 12/31/18

1-month EUR LIBOR +0.80% BNP Paribas 29-Dec-17 (27)

EUR 8,887,609 Performance of Sacyr SA,4.00%, 05/08/19


EUR 216,360 Performance of Siemens AG,wts., 08/16/17



BNP Paribas 29-Jan-18 5

EUR 45,720 1-month EUR LIBOR -0.35% Performance of EvonikIndustries AG



BNP Paribas 29-Jan-18 (281)

EUR 281,605 1-month EUR LIBOR -0.35% Performance of Siemens AG BNP Paribas 29-Jan-18 (2,538)EUR 74,358 1-month EUR LIBOR -0.50% Performance of Richter Gedeon

NyrtBNP Paribas 29-Jan-18 (390)

GBP 36,149 1-month GBP LIBOR -0.40% Performance of J SainsburyPLC


GBP 4,450 1-month GBP LIBOR -2.75% Performance of Primary HealthProperties PLC


JPY 4,569,400 1-month JPY LIBOR -0.40% Performance of AEON FinancialService Co. Ltd.

BNP Paribas 29-Jan-18 1,111

JPY 94,210,600 1-month JPY LIBOR -0.40% Performance of Suzuki MotorCorp.

BNP Paribas 29-Jan-18 1,567

JPY 1,253,200 1-month JPY LIBOR -0.40% Performance of TakashimayaCo. Ltd.


JPY 863,000 1-month JPY LIBOR -0.40% Performance of Terumo Corp. BNP Paribas 29-Jan-18 17JPY 2,591,400,000 Performance of AEON Financial

Service Co. Ltd., 09/13/191-month JPY LIBOR +0.75% BNP Paribas 29-Jan-18 (2,543)

USD 34,480,334 Performance ofCardtronics Inc., 1.00%,12/01/20

1-month USD LIBOR +0.75% BNP Paribas 29-Jan-18 659

USD 40,931,911 Performance of Ciena Corp.,4.00%, 12/15/20

1-month USD LIBOR +0.75% BNP Paribas 29-Jan-18 (23)

USD 79,470,000 Performance of CP FoodsHoldings Ltd., 0.50%,09/22/21

1-month USD LIBOR BNP Paribas 29-Jan-18 6,822

USD 19,766,667 Performance of DP World Ltd.,cvt., senior note, Reg S,1.75%, 06/19/24


USD 25,331,250 Performance of ENN EnergyHoldings Ltd., cvt., senior note,Reg S, zero cpn., 02/26/18


GBP 10,325,812 Performance of J SainsburyPLC, 1.25%, 11/21/19

1-month GBP LIBOR +0.80% BNP Paribas 29-Jan-18 352

USD 13,039,217 Performance of Pattern EnergyGroup Inc., cvt., senior note,144A, 4.00%, 07/15/20

1-month USD LIBOR BNP Paribas 29-Jan-18 59

JPY 20,548,750,000 Performance of Suzuki MotorCorp., Reg S, zero cpn.,03/31/23

1-month JPY LIBOR +0.75% BNP Paribas 29-Jan-18 4,054


Performance of Cardtronics Inc. BNP Paribas 29-Jan-18 2,606


Performance of Ciena Corp. BNP Paribas 29-Jan-18 3,931


BNP Paribas 28-Feb-18 (41)


BNP Paribas 28-Feb-18 (19)

JPY 431,500 1-month JPY LIBOR -0.40% Performance of Terumo Corp. BNP Paribas 28-Feb-18 9USD 485,735 1-month USD LIBOR -0.30% Performance of Janus Capital

Group Inc.Citibank 28-Mar-18 16,472







Notionalamount



USD

USD 2,106,728 1-month USD LIBOR -0.30% Performance of The PricelineGroup Inc.

Citibank 28-Mar-18 48,427

USD 2,638,271 1-month USD LIBOR -0.55% Performance of TAL EducationGroup, ADR

Citibank 28-Mar-18 122,229

USD 651,659 Performance of Janus CapitalGroup Inc., 0.75%, 07/15/18

1-month USD LIBOR +0.75% Citibank 28-Mar-18 (6,894)

USD 2,652,031 Performance of TAL EducationGroup, 2.50%, 05/15/19


USD 2,398,796 Performance of The PricelineGroup Inc., 1.00%, 03/15/18


USD 104,858 Performance of Twitter Inc.,1.00%, 09/15/21

1-month USD LIBOR +0.75% Citibank 28-Mar-18 262

HUF 784,484 1-month EUR LIBOR -0.40% Performance of MOL HungarianOil and Gas PLC

Deutsche Bank 18-Jan-17 (21,656)

HUF 634,705 1-month EUR LIBOR -0.40% Performance of Richter GedeonNyrt

Deutsche Bank 18-Jan-17 (10,937)

EUR 1,226,500 Performance of CEZ MH BV,cvt., senior note, Reg S, zerocpn., 08/04/17

1-month EUR LIBOR +0.90% Deutsche Bank 18-Jan-17 24,667

EUR 1,412,782 Performance of MagyarNemzeti Vagyonkezelo ZRT,cvt., senior note, Reg S,3.375%, 04/02/19

1-month EUR LIBOR +0.90% Deutsche Bank 18-Jan-17 16,301

CAD 462,528 USD-CAD Overnight -0.30% Performance of Element FleetManagement Corp.

Deutsche Bank 20-Jan-17 35,876

GBP 1,141,955 Performance of British LandJersey Ltd., cvt., senior note,Reg S, 1.50%, 09/10/17

1-month GBP LIBOR +0.90% Deutsche Bank 17-Feb-17 4,014

GBP 766,467 Performance of CarillionFinance Jersey Ltd., cvt., seniornote, Reg S, 2.50%, 12/19/19


USD 197,667 Performance of DP World Ltd.,cvt., senior note, Reg S,1.75%, 06/19/24

1-month USD LIBOR +0.90% Deutsche Bank 17-Feb-17 1,667

GBP 1,520,951 Performance of Great PortlandEstates Capital Jersey Ltd.,cvt., senior note, Reg S,1.00%, 09/10/18


GBP 290,112 Performance of Helical BarJersey Ltd., senior note, cvt.,Reg S, 4.00%, 06/17/19


GBP 344,652 Performance of PHP FinanceJersey Ltd., cvt., senior note,4.25%, 05/20/19


GBP 404,901 Performance of Remgro JerseyGBP Ltd., 2.625%, 03/22/21


GBP 96,311 Performance of St. ModwenProp Securities Jersey Ltd.,cvt., 2.875%, 03/06/19

1-month GBP LIBOR +0.90% Deutsche Bank 17-Feb-17 (49)

GBP 1,400,445 Performance of Unite JerseyIssuer Ltd., cvt., senior note,Reg S, 2.50%, 10/10/18


USD 177,816 Performance of Larsen &Toubro Ltd., cvt., senior note,Reg S, 0.675%, 10/22/19

1-month USD LIBOR +1.50% Deutsche Bank 20-Feb-17 (167)

EUR 1,401,690 Performance of PT Jersey Ltd.,Reg S, cvt., senior note,0.50%, 11/19/19

1-month EUR LIBOR +0.90% Deutsche Bank 27-Feb-17 42,888

EUR 596,619 Performance of AabarInvestments PJSC, cvt., seniornote, 0.50%, 03/27/20

1-month EUR LIBOR +0.90% Deutsche Bank 01-Mar-17 19,741

EUR 649,685 Performance of HansteenJersey Securities Ltd., cvt.,senior note, Reg S, 4.00%,07/15/18


EUR 10,831 Performance of Fonciere desRegions, cvt., senior note,3.34%, 01/01/17


EUR 171,852 1-month EUR LIBOR -0.40% Performance of Fonciere DesRegions

Deutsche Bank 17-Mar-17 (7,416)







Notionalamount



USD

EUR 306,817 1-month EUR LIBOR -4.00% Performance of AroundtownProperty Holdings PLC

Deutsche Bank 17-Mar-17 (21,178)

USD 40,357 1-month USD LIBOR -2.00% Performance of Larsen &Toubro Ltd., GDR, Reg S

Deutsche Bank 17-Mar-17 507

EUR 1,299,368 Performance of ACSActividades Finance BV, cvt.,first lien, senior secured note,Reg S, 2.625%, 10/22/18


EUR 972,883 Performance of OCI NV, cvt.,senior note, Reg S, 3.875%,09/25/18


HKD 29,098,972 Performance of ShenzhouInternational Group HoldingsLtd., cvt., senior note, Reg S,0.50%, 06/18/19

1-month HKD LIBOR +0.90% Deutsche Bank 30-Mar-17 47,568

USD 82,742 Performance of Dana GasSukuk Ltd., cvt., senior note,Reg S, 7.00%, 10/31/17

1-month USD LIBOR +0.90% Deutsche Bank 18-Apr-17 885

EUR 382,106 Performance of Valeo SA 1-month EUR LIBOR +1.00% Deutsche Bank 18-Apr-17 11,010SEK 462,395 1-month EUR LIBOR -0.40% Performance of Industrivarden

ABDeutsche Bank 21-Apr-17 (10,444)

EUR 2,151,807 Performance of IndustrivardenAB, cvt., senior note, Reg S,1.875%, 02/27/17

1-month EUR LIBOR +0.90% Deutsche Bank 21-Apr-17 34,064

USD 494,798 Performance of Premier OilFinance Jersey Ltd., cvt., seniornote, Reg S, 2.50%, 07/27/18

1-month USD LIBOR +0.90% Deutsche Bank 03-May-17 23,267

USD 398,653 Performance of Accenture PLC,A

1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (21,641)

USD 28,393 Performance of ActivisionBlizzard Inc.


USD 14,864 Performance of AdobeSystems Inc.

1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (408)

USD 1,518 Performance of AkamaiTechnologies Inc.

1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 65

USD 473,265 Performance of Alibaba GroupHolding Ltd., ADR


USD 181,468 Performance of Alliance DataSystems Corp.


USD 128,952 Performance of Amazon.comInc.


USD 66,144 Performance of Atento SA 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (1,443)USD 71,563 Performance of Atlassian Corp.

PLC1-month USD LIBOR +0.40% Deutsche Bank 10-May-17 (4,551)

USD 519,741 Performance of Automatic DataProcessing Inc.


USD 216,603 Performance of AvagoTechnologies Ltd.


USD 207,208 Performance ofBenefitfocus Inc.


USD 98,355 Performance of BlackhawkNetwork Holdings Inc.


USD 54,723 Performance of Cardtronics Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 282USD 246,564 Performance of Cognizant

Technology Solutions Corp., A1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 471

USD 82,100 Performance of DISH NetworkCorp., A


USD 150,590 Performance of eBay Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (2,955)USD 209,781 Performance of EPAM

Systems Inc.1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 2,432

USD 307,224 Performance of Equifax Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 3,340USD 637,373 Performance of ExlService

Holdings Inc.1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 13,260

USD 96,035 Performance of Expedia Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (6,057)USD 1,197,131 Performance of Genpact Ltd. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 8,482USD 270,503 Performance of Global

Payments Inc.1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (7,855)

USD 206,605 Performance of Google Inc., A 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (4,650)USD 128,001 Performance of Google Inc., C 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (3,183)USD 53,032 Performance of Hubspot Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (2,087)







Notionalamount



USD

USD 623,875 Performance of HuronConsulting Group Inc.


USD 231,634 Performance of Intuit Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (3,155)USD 228,574 Performance of

ManpowerGroup Inc.1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (8,136)

USD 359,729 Performance ofMastercard Inc., A


USD 252,086 Performance of Microsoft Corp. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (303)USD 447,299 Performance of Netflix Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 3,367USD 237,231 Performance of Oclaro Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 37,159USD 122,865 Performance of Paylocity

Holding Corp.1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (7,983)

USD 124,034 Performance of PayPalHoldings Inc.


USD 203,427 Performance of Robert HalfInternational Inc.


USD 238,414 Performance of Salesforce.comInc.


USD 55,361 Performance ofServiceNow Inc.


USD 519,002 Performance of TaiwanSemiconductor ManufacturingCo. Ltd., ADR


USD 69,574 Performance of TriNetGroup Inc.


USD 302,664 Performance of Vantiv Inc., A 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 20,198USD 233,839 Performance of VeriFone

Systems Inc.1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 13,207

USD 44,916 Performance of VeriSign Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (1,841)USD 402,300 Performance of Visa Inc., A 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (2,708)USD 137,739 Performance of WageWorks Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (621)USD 160,142 Performance of WEX Inc. 1-month USD LIBOR +0.30% Deutsche Bank 10-May-17 (1,835)USD 978,392 1-month USD LIBOR +0.10% Performance of DB Hybrid

Basket 01Deutsche Bank 15-May-17 9,620

USD 347,502 1-month USD LIBOR +0.10% Performance of Dow Jones UKConsumer Goods Total ReturnIndex

Deutsche Bank 15-May-17 3,476

USD 193,337 1-month USD LIBOR +0.10% Performance of S&P SmallCap600 Total Return Index


USD 1,261,231 1-month USD LIBOR -0.10% Performance of Dow JonesTransportation Average TotalReturn Index


USD 205,476 1-month USD LIBOR -0.25% Performance of Russell MidcapGrowth Index Total Return


USD 342,627 1-month USD LIBOR -0.30% Performance of S&P Smallcap600 Growth Index


USD 559,216 1-month USD LIBOR -0.40% Performance of S&P North USATechnology Total Return Index


USD 352,686 1-month USD LIBOR -0.70% Performance of Russell 2000Total Return Index


USD 261,167 1-month USD LIBOR -0.85% Performance of S&P RetailSector Industry Index (TR)


USD 506,625 Performance of ENN EnergyHoldings Ltd., cvt., senior note,Reg S, zero cpn., 02/26/18



Deutsche Bank 06-Jun-17 (407)

EUR 382,382 Performance of Parpublica -Participacoes Publicas SGPSSA, cvt., senior note, Reg S,5.25%, 09/28/17

1-month EUR LIBOR +0.90% Deutsche Bank 06-Jun-17 219

JPY 10,487,500 Performance ofResorttrust Inc., cvt., seniornote, Reg S, zero cpn.,12/01/21

1-month JPY LIBOR +0.90% Deutsche Bank 19-Jun-17 283

EUR 3,279,356 Performance of SiemIndustries Inc., cvt., Reg S,2.25%, 06/02/21

1-month EUR LIBOR +0.90% Deutsche Bank 19-Jun-17 (570)

EUR 202,512 1-month EUR LIBOR -0.40% Performance of KoninklijkeKPN NV

Deutsche Bank 19-Jul-17 (5,909)

EUR 55,908 1-month EUR LIBOR -0.40% Performance of OCI NV Deutsche Bank 19-Jul-17 (10,666)







Notionalamount



USD

EUR 1,004,694 Performance of SteinhoffFinance Holding, 4.00%,01/30/21

1-month EUR LIBOR +0.90% Deutsche Bank 19-Jul-17 20,509

PHP 79,819 1-month USD LIBOR -5.00% Performance of Ayala Land Inc. Deutsche Bank 21-Jul-17 (1,008)MYR 570,502 1-month SGD LIBOR -3.10% Performance of IHH Healthcare

Bhd.Deutsche Bank 18-Aug-17 2,259

USD 260,052 Performance of Asia View Ltd.,cvt., senior note, Reg S,1.50%, 08/08/19

1-month USD LIBOR +0.90% Deutsche Bank 18-Aug-17 (3,187)

USD 794,700 Performance of CP FoodsHoldings Ltd., 0.50%,09/22/21

1-month USD LIBOR +0.90% Deutsche Bank 18-Aug-17 3,133

USD 472,280 Performance of SuncokeEnergy Partners LP

US Overnight Bank FundingRate +0.85%

Deutsche Bank 15-Sep-17 (13,205)


Performance of AbbottLaboratories

Deutsche Bank 15-Sep-17 12,678


Performance of AMCEntertainment Holdings Inc.


USD 1,626,600 US Overnight Bank FundingRate -0.35%

Performance ofCenturyLink Inc.



Performance of DelekU.S. Holdings Inc.



Performance of Enbridge Inc. Deutsche Bank 15-Sep-17 (4,727)


Performance of Intersil Corp. Deutsche Bank 15-Sep-17 (992)


Performance of SPDR S&P 500ETF Trust



Performance of SunCokeEnergy Inc.



Performance of Tesoro Corp. Deutsche Bank 15-Sep-17 29,721


Performance of U.S. TreasuryNote, 1.75%, 05/15/22


EUR 307,044 1-month EUR LIBOR Performance of Aurubis AG Deutsche Bank 19-Sep-17 (8,434)EUR 9,668 1-month EUR LIBOR Performance of Deutsche

Euroshop AGDeutsche Bank 19-Sep-17 (366)

EUR 2,506,455 1-month EUR LIBOR Performance of Drillisch AG Deutsche Bank 19-Sep-17 (147,421)EUR 529,225 1-month EUR LIBOR Performance of Steinhoff

International Holdings NVDeutsche Bank 19-Sep-17 (19,425)

EUR 1,433,011 1-month EUR LIBOR -0.40% Performance of Alstria OfficeREIT-AG



Deutsche Bank 19-Sep-17 (364)

EUR 731,758 1-month EUR LIBOR -0.40% Performance of Fresenius SE &Co. KGaA


EUR 333,873 1-month EUR LIBOR -0.40% Performance of Kloeckner &Co. SE


EUR 1,224,998 1-month EUR LIBOR -0.40% Performance of Siemens AG Deutsche Bank 19-Sep-17 (8,280)USD 5,419,800 Performance of Advanced

SemiconductorEngineering Inc., cvt., seniornote, Reg S, zero cpn.,09/05/18

1-month USD LIBOR +1.00% Deutsche Bank 19-Sep-17 (107,400)

EUR 2,761,348 Performance of Drillisch AG,cvt., senior note, Reg S,0.75%, 12/12/18

1-month EUR LIBOR Deutsche Bank 19-Sep-17 194,747

USD 192,000 Performance of Gulf KeystonePetroleum Ltd., 10.00%,10/18/21

1-month USD LIBOR +0.90% Deutsche Bank 19-Sep-17 5,000

SGD 816,563 Performance of Indah CapitalLtd., cvt., senior note, Reg S,zero cpn., 10/24/18

1-month SGD LIBOR +1.00% Deutsche Bank 19-Sep-17 (518)

USD 3,150,000 Performance of SiliconwarePrecision Industries Co. Ltd.,cvt., senior note, zero cpn.,10/31/19


EUR 92,749 1-month EUR LIBOR -1.75% Performance of Ablynx NV Deutsche Bank 22-Sep-17 13,096







Notionalamount



USD

EUR 218,051 Performance of Ablynx NV, cvt.,senior note, Reg S, 3.25%,05/27/20

1-month EUR LIBOR +1.00% Deutsche Bank 22-Sep-17 (24,256)

USD 229,836 1-month USD LIBOR +0.40% Performance of Air Lease Corp.,cvt., senior note, 3.875%,12/01/18


USD 32,005 1-month USD LIBOR +0.40% Performance of SucampoPharmaceuticals Inc.


USD 209,129 1-month USD LIBOR -0.35% Performance of Live NationEntertainment Inc.


USD 79,674 1-month USD LIBOR -0.35% Performance of SucampoPharmaceuticals Inc.


USD 280,998 Performance of Aceto Corp.,cvt., senior note, 2.00%,11/01/20


USD 60,256 Performance of AdvancedMicro Devices Inc., 2.125%,09/01/26


USD 386,912 Performance of Aegean MarinePetroleum Network Inc., cvt.,senior note, 4.00%, 11/01/18


USD 1,321,776 Performance of AK Steel Corp.,cvt., senior note, 5.00%,11/15/19


USD 164,648 Performance of AllscriptsHealthcare Solutions Inc., cvt.,senior note, 1.25%, 07/01/20


USD 843,009 Performance of Altra IndustrialMotion Corp., cvt., senior bond,2.75%, 03/01/31


USD 623,633 Performance of AMAGPharmaceuticals Inc., cvt.,senior note, 2.50%, 02/15/19


USD 389,813 Performance of AmericanRealty Capital Properties Inc.,cvt., 3.00%, 08/01/18


USD 898,490 Performance of AmericanResidential Properties OP LP,cvt., senior note, 144A,3.25%, 11/15/18


USD 194,212 Performance of AmtrustFinancial Services Inc., cvt.,senior note, 2.75%, 12/15/44


USD 10,120 Performance of Ascent CapitalGroup Inc., cvt., senior note,4.00%, 07/15/20

1-month USD LIBOR +1.00% Deutsche Bank 29-Sep-17 688

USD 1,069,118 Performance of BioMarinPharmaceutical Inc., cvt.,senior sub. note, 1.50%,10/15/20


USD 610,449 Performance of BlackhawkNetwork Holdings Inc., 1.50%,01/15/22


USD 64,680 Performance of Blucora Inc.,cvt., senior note, 4.25%,04/01/19


USD 341,404 Performance of BottomlineTechnologies Inc., cvt., seniornote, 1.50%, 12/01/17


USD 259,106 Performance of BroadSoft Inc.,cvt., 1.00%, 09/01/22


USD 257,240 Performance of BrookdaleSenior Living Inc., cvt., seniornote, 2.75%, 06/15/18


USD 72,090 Performance of Bunge Ltd.,cvt., pfd., 4.875%


USD 1,210,075 Performance of CalAtlanticGroup Inc., cvt., senior bond,1.25%, 08/01/32








Notionalamount



USD

USD 329,633 Performance of CalAtlanticGroup Inc., cvt., senior note,.25%, 06/01/19


USD 613,577 Performance of CarriageServices Inc., cvt., sub. note,2.75%, 03/15/21


USD 302,698 Performance of Cemex SAB deCV, cvt., sub. note, 3.72%,03/15/20


USD 669,095 Performance of Cemex SAB deCV, cvt., sub. note, 3.75%,03/15/18


USD 526,105 Performance of ChesapeakeEnergy Corp., cvt., 5.50%,09/15/26


USD 243,327 Performance of ClovisOncology Inc., cvt., senior note,2.50%, 09/15/21


USD 310,800 Performance of ColonyStarwood Homes, cvt., 3.00%,07/01/19


USD 360,762 Performance of ColonyStarwood Homes, cvt., seniornote, 4.50%, 10/15/17


USD 81,998 Performance of CornerstoneOnDemand Inc., cvt., seniornote, 1.50%, 07/01/18


USD 646,242 Performance of CowenGroup Inc., cvt., senior note,3.00%, 03/15/19


USD 507,646 Performance of CSG SystemsInternational Inc., cvt., seniorbond, 144A, 4.25%, 03/15/36


USD 40,794 Performance of Ctrip.comInternational Ltd., 1.25%,09/15/22

1-month USD LIBOR +1.00% Deutsche Bank 29-Sep-17 (326)

USD 964,956 Performance of CypressSemiconductor Corp., cvt.,144A, 4.50%, 01/15/22


USD 504,248 Performance of Dish NetworkCorp., 3.375%, 08/15/26


USD 471,239 Performance of DycomIndustries Inc., cvt., seniornote, 0.75%, 09/15/21


USD 766,160 Performance of EmergentBiosolutions Inc., cvt., seniornote, 2.875%, 01/15/21


USD 266,379 Performance of Encore CapitalGroup Inc., cvt., senior note,3.00%, 11/27/17


USD 84,285 Performance of Encore CapitalGroup Inc., senior note, cvt.,2.875%, 03/15/21


USD 261,392 Performance of Forest CityEnterprises Inc., cvt., seniornote, 4.25%, 08/15/18


USD 284,223 Performance of GreenPlains Inc., 4.125%, 09/01/22


USD 1,660,945 Performance of GreenPlains Inc., cvt., senior note,3.25%, 10/01/18


USD 149,652 Performance of Griffon Corp.,cvt., sub. note, 144A, 4.00%,01/15/17


USD 324,984 Performance of HealthSouthCorp., cvt., senior bond,2.00%, 12/01/43








Notionalamount



USD

USD 782,316 Performance of Hologic Inc.,cvt., senior bond, zero cpn.,12/15/43


USD 625,475 Performance of HuronConsulting Group Inc., cvt.,senior note, 1.25%, 10/01/19


USD 707,315 Performance of Iconix BrandGroup Inc., cvt., senior sub.note, 1.50%, 03/15/18


USD 86,230 Performance of Innoviva Inc.,cvt., sub. note, 2.125%,01/15/23


USD 143,684 Performance of Inphi Corp.,0.75%, 09/01/21


USD 262,735 Performance of Insulet Corp.,1.25%, 09/15/21


USD 565,470 Performance of InterceptPharmaceuticals Inc., cvt.,senior note, 3.25%, 07/01/23


USD 437,162 Performance ofInterDigital Inc., cvt., seniornote, 1.50%, 03/01/20


USD 349,184 Performance of j2 Global Inc.,cvt., senior bond, 3.25%,06/15/29


USD 717,465 Performance of Knowles Corp.,cvt., senior note, 144A,3.25%, 11/01/21


USD 676,088 Performance of LGIHomes Inc., cvt., sub. bond,4.25%, 11/15/19


USD 399,978 Performance of LibertyInteractive LLC, 4.00%,11/15/29


USD 372,089 Performance of Liberty MediaCorp., cvt., senior note,1.375%, 10/15/23


USD 243,444 Performance of M/IHomes Inc., cvt., senior sub.note, 3.25%, 09/15/17


USD 963,429 Performance of NavistarInternational Corp., cvt., seniorsub. note, 4.75%, 04/15/19


USD 126,819 Performance of Nuvasive Inc.,cvt., senior note, 144A,2.25%, 03/15/21


USD 110,310 Performance of PDLBioPharma Inc., 4.00%,12/01/21


USD 547,803 Performance of PRAGroup Inc., cvt., senior note,3.00%, 08/01/20


USD 238,289 Performance of Proofpoint Inc.,cvt., 0.75%, 06/15/20

US Overnight Bank FundingRate +1.00%


USD 207,298 Performance of PTCTherapeutics Inc., cvt., seniornote, 144A, 3.00%, 08/15/22


USD 207,212 Performance of Quidel Corp.,cvt., senior note, 3.25%,12/15/20


USD 559,878 Performance of Rovi Corp.,cvt., senior note, 0.50%,03/01/20


USD 61,526 Performance of RTIInternational Metals Inc., cvt.,senior note, 1.625%, 10/15/19


USD 226,371 Performance of RWTHoldings Inc., cvt., senior note,5.625%, 11/15/19








Notionalamount



USD

USD 979,558 Performance of Shutterfly Inc.,cvt., 0.25%, 05/15/18


USD 659,732 Performance of SM Energy Co.,1.50%, 07/01/21


USD 477,663 Performance of Solazyme Inc.,cvt., senior sub. note, 5.00%,10/01/19


USD 1,581,953 Performance of StarwoodProperty Trust Inc., cvt., seniornote, 3.75%, 10/15/17


USD 336,191 Performance of StarwoodProperty Trust Inc., cvt., seniornote, 4.55%, 03/01/18


USD 57,799 Performance of SucampoPharmaceuticals Inc, cvt.,3.25%, 12/15/21


USD 137,200 Performance of TeslaMotors Inc., cvt., senior note,0.25%, 03/01/19


USD 1,099,828 Performance of The GreenbrierCos. Inc., cvt., senior note,3.50%, 04/01/18


USD 397,803 Performance of The MedicinesCo., cvt., senior note, 144A,2.75%, 7/15/23


USD 403,332 Performance of The PricelineGroup Inc., cvt., senior note,0.90%, 09/15/21


USD 973,126 Performance of The PricelineGroup Inc., cvt., senior note,1.00%, 03/15/18


USD 237,653 Performance of Toll BrothersFinance Corp., cvt., seniorbond, 0.50%, 09/15/32


USD 142,924 Performance of TrinityIndustries Inc., cvt., sub. note,3.875%, 06/01/36


USD 304,004 Performance of ViaviSolutions Inc., cvt., seniorbond, 0.625%, 08/15/33


USD 77,086 Performance of VitaminShoppe Inc., 2.25%, 12/01/20


USD 29,636 Performance of WabashNational Corp., cvt., seniornote, 3.375%, 05/01/18


USD 882,063 Performance of WeatherfordInternational Ltd., cvt., seniornote, 5.875%, 07/01/21


USD 140,663 Performance of WebMD HealthCorp., cvt., 1.50%, 12/01/20


USD 488,115 Performance of Workday Inc.,1.50%, 07/15/20


USD 559,903 Performance of Wright MedicalGroup Inc., cvt., senior note,2.00%, 02/15/20


USD 422,851 Performance of Wright MedicalGroup NV, cvt., senior note,144A, 2.25%, 11/15/21


USD 443,927 Performance of Yahoo! Inc.,cvt., zero cpn., 12/01/18



Performance of AK SteelHolding Corp.



Performance of Knowles Corp. Deutsche Bank 29-Sep-17 (83,071)


Performance of NuVasive Inc. Deutsche Bank 29-Sep-17 (21,028)


Performance of WebMD HealthCorp.



Performance of Aceto Corp. Deutsche Bank 29-Sep-17 5,990







Notionalamount



USD


Performance of AdvancedMicro Devices Inc.



Performance of Aegean MarinePetroleum Network Inc.



Performance of AerojetRocketdyne Holdings Inc.



Performance of AllscriptsHealthcare Solutions Inc.



Performance of Altra IndustrialMotion Corp.



Performance of AMAGPharmaceuticals Inc.



Performance of AmericanHomes 4 Rent



Performance of AmicusTherapeutics Inc.



Performance of AmTrustFinancial Services Inc.



Performance of Arconic Inc. Deutsche Bank 29-Sep-17 5,685


Performance of Ascent CapitalGroup Inc.



Performance of BioMarinPharmaceutical Inc.



Performance of BlackhawkNetwork Holdings Inc.



Performance of Blucora Inc. Deutsche Bank 29-Sep-17 (5,216)


Performance of BottomlineTechnologies Inc.



Performance of BroadSoft Inc. Deutsche Bank 29-Sep-17 (12,242)


Performance of BrookdaleSenior Living Inc.



Performance of Bunge Ltd. Deutsche Bank 29-Sep-17 (58,634)


Performance of CalAtlanticGroup Inc.



Performance of CarriageServices Inc.



Performance of Cemex SAB deCV, CPO, ADR



Performance of ClovisOncology Inc.



Performance of ColonyStarwood Homes



Performance of CornerstoneOnDemand Inc.



Performance of CowenGroup Inc.



Performance of CSG SystemsInternational Inc.






Performance of CypressSemiconductor Corp.






Performance of DycomIndustries Inc.



Performance of EmergentBioSolutions Inc.



Performance of Ensco PLC Deutsche Bank 29-Sep-17 28,878


Performance of Forest CityRealty Trust Inc.



Performance of GreenPlains Inc.



Performance of Griffon Corp. Deutsche Bank 29-Sep-17 (264,150)







Notionalamount



USD





Performance of Hologic Inc. Deutsche Bank 29-Sep-17 (19,154)


Performance of HuronConsulting Group Inc.



Performance of Inphi Corp. Deutsche Bank 29-Sep-17 (18,418)


Performance of Insulet Corp. Deutsche Bank 29-Sep-17 (1,712)


Performance of InterDigital Inc. Deutsche Bank 29-Sep-17 (56,852)


Performance of J2 Global Inc. Deutsche Bank 29-Sep-17 (36,866)


Performance of Liberty BravesGroup



Performance of Liberty MediaGroup



Performance of LibertySiriusxm Group



Performance of M/I Homes Inc. Deutsche Bank 29-Sep-17 (42,021)


Performance of MeritageHomes Corp.

Deutsche Bank 29-Sep-17 725


Performance of NavistarInternational Corp.



Performance of PDLBioPharma Inc.



Performance of PRA Group Inc. Deutsche Bank 29-Sep-17 (23,305)


Performance of Proofpoint Inc. Deutsche Bank 29-Sep-17 13,323


Performance of PTCTherapeutics Inc.



Performance of Quidel Corp. Deutsche Bank 29-Sep-17 (14,355)


Performance of RedwoodTrust Inc.

Deutsche Bank 29-Sep-17 137


Performance of RenewableEnergy Group Inc.



Performance of Shutterfly Inc. Deutsche Bank 29-Sep-17 (28,949)


Performance of SM Energy Co. Deutsche Bank 29-Sep-17 44,012


Performance of StarwoodProperty Trust Inc.



Performance of Teck ResourcesLtd.



Performance of TeslaMotors Inc.



Performance of The MedicinesCo.



Performance of The PricelineGroup Inc.



Performance of TiVo Corp. Deutsche Bank 29-Sep-17 (3,750)


Performance of TollBrothers Inc.



Performance of TrinityIndustries Inc.



Performance of ViaviSolutions Inc.



Performance of VitaminShoppe Inc.



Performance of WabashNational Corp.



Performance of WeatherfordInternational PLC



Performance of William LyonHomes








Notionalamount



USD


Performance of Workday Inc.,cvt., 1.50%, 07/15/20



Performance of Wright MedicalGroup NV



Performance of Yahoo! Inc. Deutsche Bank 29-Sep-17 9,508


Performance of ZillowGroup Inc.



Performance of Iconix BrandGroup Inc.



Performance of Innoviva Inc. Deutsche Bank 29-Sep-17 8,824


Performance of InterceptPharmaceuticals Inc.



Performance of LGI Homes Inc. Deutsche Bank 29-Sep-17 30,753


Performance of Greenbrier Cos.Inc.



Performance of Encore CapitalGroup Inc.



Performance of TerraViaHoldings Inc.



Performance of ChesapeakeEnergy Corp.


EUR 630,365 1-month EUR LIBOR -1.25% Performance of Outokumpu OY Deutsche Bank 02-Oct-17 (15,876)EUR 1,031,973 Performance of Outokumpu

OYJ, 3.25%, 2/26/201-month EUR LIBOR +0.90% Deutsche Bank 02-Oct-17 9,665

EUR 2,833,170 1-month EUR LIBOR -0.50% Performance of Technip SA Deutsche Bank 16-Oct-17 (39,583)GBP 318,361 1-month GBP LIBOR -0.75% Performance of United

Kingdom Treasury Bond,1.50%, 07/22/26

Deutsche Bank 16-Oct-17 (5,506)

GBP 421,824 Performance of LavendonGroup PLC

1-month GBP LIBOR +0.45% Deutsche Bank 16-Oct-17 43,814

GBP 735,683 Performance of Punch TavernsPLC

1-month GBP LIBOR +0.45% Deutsche Bank 16-Oct-17 (14,320)

GBP 89,879 Performance of SpireHealthcare Group PLC

1-month GBP LIBOR +0.45% Deutsche Bank 16-Oct-17 (131)

USD 352,562 1-month USD LIBOR +0.75% Performance of AkamaiTechnologies Inc., cvt., seniornote, zero cpn., 02/15/19

Deutsche Bank 17-Oct-17 3,206

USD 315,703 1-month USD LIBOR +0.75% Performance of Live NationEntertainment Inc., cvt., seniornote, 2.50%, 05/15/19

Deutsche Bank 17-Oct-17 (697)

USD 262,640 1-month USD LIBOR +0.75% Performance of Red Hat Inc.,cvt., senior note, 0.25%,10/01/19


USD 405,180 1-month USD LIBOR +0.75% Performance of SM Energy Co.,1.50%, 07/01/21


USD 239,070 1-month USD LIBOR +0.75% Performance of SynchronossTechnologies Inc., cvt., seniornote, 0.75%, 08/15/19


USD 534,946 1-month USD LIBOR +0.75% Performance of The PricelineGroup Inc., cvt., senior note,0.90%, 09/15/21


USD 829,714 Performance of 51job Inc.,cvt., senior note, 3.25%,04/15/19

1-month USD LIBOR +0.90% Deutsche Bank 17-Oct-17 12,182

USD 1,258,939 Performance of AcordaTherapeutics Inc., cvt., seniornote, 1.75%, 06/15/21

1-month USD LIBOR +0.90% Deutsche Bank 17-Oct-17 (41,892)

USD 492,126 Performance of AlbanyMolecular Research Inc., cvt.,senior note, 2.25%, 11/15/18


USD 223,401 Performance of Allergan PLC,cvt., 5.50%, pfd.


USD 894,159 Performance of AMAGPharmaceuticals Inc., cvt.,senior note, 2.50%, 02/15/19








Notionalamount



USD

USD 592,459 Performance of ApolloCommercial Real EstateFinance Inc., cvt., senior note,5.50%, 03/15/19


USD 242,513 Performance of Belden Inc.,cvt., 6.75%, pfd.


USD 1,636,640 Performance of Black HillsCorp., cvt., pfd., 7.75%


USD 505,966 Performance of BlackstoneMortgage Trust Inc., 5.25%,12/01/18


USD 625,004 Performance of BrookdaleSenior Living Inc., cvt., seniornote, 2.75%, 06/15/18


USD 547,907 Performance ofCardtronics Inc., cvt., seniornote, 1.00%, 12/01/20


USD 557,908 Performance of Ciena Corp.,cvt., senior note, 4.00%,12/15/20

1-month USD LIBOR +0.90% Deutsche Bank 17-Oct-17 984

USD 1,378,813 Performance of CitrixSystems Inc., cvt., senior note,0.50%, 04/15/19


USD 1,822,377 Performance of ColonyCapital Inc., cvt., senior note,3.875%, 01/15/21


USD 595,149 Performance of ColonyStarwood Homes, cvt., seniornote, 4.50%, 10/15/17


USD 3,546,049 Performance of Ctrip.comInternational Ltd., cvt., seniornote, 1.25%, 10/15/18


USD 130,044 Performance of Depomed Inc.,cvt., senior note, 2.50%,09/01/21


USD 1,555,734 Performance of DHTHoldings Inc., senior note,4.50%, 10/01/19


USD 283,350 Performance of Dish NetworkCorp., 3.375%, 08/15/26


USD 341,373 Performance of EPR Properties,cvt., pfd., 5.75%


USD 302,024 Performance of FireEye Inc.,cvt., senior bond, B, 1.625%,06/01/35


USD 450,749 Performance of Fluidigm Corp.,cvt., senior bond, 2.75%,02/01/34


USD 2,375,351 Performance of FrontierCommunications Corp., cvt.,pfd., 11.125%


USD 665,520 Performance of General CableCorp., sub. bond, FRN, 4.50%,11/15/29


USD 3,165,200 Performance of GPT PropertyTrust LP, cvt., senior note,144A, 3.75%, 03/15/19


USD 592,121 Performance of Great PlainsEnergy Inc., cvt., 7.00%, pfd.


USD 671,395 Performance of HealthSouthCorp., cvt., senior bond,2.00%, 12/01/43


USD 1,359,028 Performance ofHealthways Inc., cvt., seniornote, 1.50%, 07/01/18


USD 1,043,541 Performance of Hess Corp.,cvt., 8.00%, pfd.


USD 328,866 Performance of HornbeckOffshore Services Inc., cvt.,senior note, 1.50%, 09/01/19








Notionalamount



USD

USD 2,674,934 Performance of Intel Corp.,cvt., junior sub. bond, 3.25%,08/01/39


USD 689,109 Performance ofInterDigital Inc., cvt., seniornote, 1.50%, 03/01/20

1-month USD LIBOR +0.90% Deutsche Bank 17-Oct-17 (592)

USD 1,501,622 Performance of j2 Global Inc.,cvt., senior bond, 3.25%,06/15/29


USD 1,031,052 Performance of Kaman Corp.,cvt., senior note, 144A,3.25%, 11/15/17


USD 1,637,386 Performance of LigandPharmaceuticals Inc., cvt.,senior note, FRN, 0.75%,08/15/19


USD 101,213 Performance of Live NationEntertainment Inc.


USD 2,525,347 Performance of Medicines Co.,cvt., senior note, 2.50%,01/15/22


USD 1,006,326 Performance ofMercadolibre Inc., cvt., 2.25%,07/01/19


USD 1,781,405 Performance of MicrochipTechnology Inc., cvt., juniorsub., 2.125%, 12/15/37


USD 2,128,886 Performance of MolinaHealthcare Inc., cvt., seniornote, 1.125%, 01/15/20


USD 1,940,916 Performance of National HealthInvestors Inc., cvt., senior note,3.25%, 04/01/21


EUR 982,135 Performance of NH HotelGroup SA, cvt., senior note,Reg S, 4.00%, 11/08/18

1-month EUR LIBOR +0.90% Deutsche Bank 17-Oct-17 10,586

USD 569,898 Performance of ONSemiconductor Corp., cvt.,senior bond, 2.625%,12/15/26


USD 5,344,579 Performance of Palo AltoNetworks Inc., cvt., zero cpn.,07/01/19


USD 1,051,040 Performance of Pattern EnergyGroup Inc., cvt., senior note,144A, 4.00%, 07/15/20


EUR 88,876 Performance of Sacyr SA,4.00%, 05/08/19


USD 2,825,350 Performance of Salesforce.comInc., cvt., senior note, 0.25%,04/01/18


USD 552,331 Performance of ScorpioTankers Inc., cvt., senior bond,144A, 2.375%, 07/01/19


USD 1,102,928 Performance of SEACORHoldings Inc., cvt., seniorbond, 3.00%, 11/15/28


USD 205,320 Performance ofServiceNow Inc., cvt., zerocpn., 11/01/18


USD 1,033,433 Performance of Ship FinanceInternational Ltd., cvt., seniornote, 3.25%, 02/01/18


USD 1,328,456 Performance of Shutterfly Inc.,cvt., 0.25%, 05/15/18


USD 485,427 Performance of Spirit RealtyCapital Inc., cvt., senior note,2.875%, 05/15/19








Notionalamount



USD

USD 2,371,893 Performance of StarwoodProperty Trust Inc., cvt., seniornote, 3.75%, 10/15/17


USD 4,170 Performance ofSunEdison Inc., cvt., seniornote, 144A, 0.25%, 01/15/20

1-month USD LIBOR +0.90% Deutsche Bank 17-Oct-17 348

USD 13,590 Performance ofSunEdison Inc., cvt., seniornote, 2.375%, 04/15/22


USD 7,349,404 Performance of Take-TwoInteractive Software Inc., cvt.,senior note, 1.00%, 07/01/18


USD 310,743 Performance of TAL EducationGroup, cvt., senior note,2.50%, 05/15/19


USD 771,023 Performance of TCP CapitalCorp., cvt., 4.625%, 03/01/22


USD 2,724,754 Performance of The PricelineGroup Inc., cvt., senior note,1.00%, 03/15/18


USD 541,236 Performance of T-MobileU.S. Inc., cvt., pfd., 5.50%


USD 1,680,264 Performance of TTMTechnologies Inc., 1.75%,12/15/20


USD 916,277 Performance of Twitter Inc.,cvt., senior note, 0.25%,09/15/19


USD 8,191,932 Performance of VeriSign Inc.,cvt., junior sub. bond, 3.25%,08/15/37


USD 2,100,846 Performance of VishayIntertechnology Inc., cvt.,senior bond, 2.25%, 06/01/42


USD 1,698,071 Performance of VishayIntertechnology Inc., cvt.,senior bond, 2.25%, 11/15/40


USD 2,155,828 Performance of Welltower Inc.,cvt., pfd., 6.50%


USD 3,976,473 Performance of Yahoo! Inc.,cvt., zero cpn., 12/01/18


EUR 742,887 1-month EUR LIBOR -0.40% Performance of Iberdrola SA Deutsche Bank 18-Oct-17 (28,558)EUR 238,282 1-month EUR LIBOR -0.40% Performance of NH Hotel

Group SADeutsche Bank 18-Oct-17 979

GBP 293,051 1-month GBP LIBOR -0.40% Performance of British LandCo. PLC

Deutsche Bank 19-Oct-17 (861)

GBP 601,643 1-month GBP LIBOR -0.40% Performance of Great PortlandEstates PLC


GBP 3,204 1-month GBP LIBOR -0.40% Performance of Helical Bar PLC Deutsche Bank 19-Oct-17 (10)GBP 89,436 1-month GBP LIBOR -0.40% Performance of Mediclinic

International PLCDeutsche Bank 19-Oct-17 (6,719)

GBP 8,497 1-month GBP LIBOR -0.40% Performance of St. ModwenProperties PLC

Deutsche Bank 19-Oct-17 14

GBP 855,472 1-month GBP LIBOR -0.40% Performance of Unite GroupPLC


GBP 6,208 1-month GBP LIBOR -0.50% Performance of J SainsburyPLC

Deutsche Bank 19-Oct-17 40

GBP 165,270 1-month GBP LIBOR -1.25% Performance of Carillion PLC Deutsche Bank 19-Oct-17 (1,812)GBP 179,533 1-month GBP LIBOR -2.50% Performance of Primary Health

Properties PLCDeutsche Bank 19-Oct-17 (994)

MYR 190,054 1-month USD LIBOR -0.50% Performance of TenagaNasional Bhd.


EUR 3,205,125 Performance of America MovilSAB de CV, cvt., senior note,Reg S, zero cpn., 05/28/20


EUR 615,439 Performance of Klockner & Co.Financial Services SA, cvt.,Reg S, 2.00%, 09/08/23

1-month EUR LIBOR +0.90% Deutsche Bank 19-Oct-17 (22,676)

JPY 12,141,000 1-month JPY LIBOR -0.40% Performance of Nipro Corp. Deutsche Bank 06-Nov-17 1,826







Notionalamount



USD

JPY 5,913,600 1-month JPY LIBOR -1.75% Performance of Mirait HoldingsCorp.

Deutsche Bank 06-Nov-17 244

USD 830,453 Performance of Golden OceanGroup Ltd., 3.07%, 01/30/19

1-month USD LIBOR +0.90% Deutsche Bank 07-Nov-17 53,509


US Overnight Bank FundingRate -0.35%

Deutsche Bank 16-Nov-17 (2,923)

USD 398,858 Performance of EuronetWorldwide Inc., cvt., seniorbond, 1.50%, 10/01/44



USD 176,554 Performance of Proofpoint Inc. US Overnight Bank FundingRate -0.35%


USD 128,527 Performance of Red Hat Inc. US Overnight Bank FundingRate -0.35%


USD 49,961 Performance of SiliconwarePrecision Industries Co., ADR



USD 221,396 Performance of SM Energy Co. US Overnight Bank FundingRate -0.35%


USD 86,405 Performance of SynchronossTechnologies Inc.




Performance of 51job Inc.,ADR



Performance of AcordaTherapeutics Inc.

Deutsche Bank 16-Nov-17 54,834


Performance of AdvancedSemiconductorEngineering Inc., ADR



Performance of Aegean MarinePetroleum Network Inc.



Performance of AlbanyMolecular Research Inc.



Performance of Alibaba GroupHolding Ltd., ADR



Performance of Allergan PLC Deutsche Bank 16-Nov-17 (13,964)


Performance of AMAGPharmaceuticals Inc.



Performance of ApolloCommercial Finance Inc.



Performance of Ares CapitalCorp.



Performance of Belden Inc. Deutsche Bank 16-Nov-17 10,009


Performance of Black HillsCorp.



Performance of BlackstoneMortgage Trust Inc.



Performance of BrookdaleSenior Living Inc.

Deutsche Bank 16-Nov-17 (306)


Performance of Cardtronics Inc. Deutsche Bank 16-Nov-17 (5,444)


Performance of Ciena Corp. Deutsche Bank 16-Nov-17 (7,574)


Performance of CitrixSystems Inc.



Performance of ColonyCapital Inc.



Performance of ColonyStarwood Homes






Performance of DepoMed Inc. Deutsche Bank 16-Nov-17 1,256


Performance of DHTHoldings Inc.






Performance of EPR Properties Deutsche Bank 16-Nov-17 (10,380)










Notionalamount



USD


Performance of FireEye Inc. Deutsche Bank 16-Nov-17 2,790


Performance of Fluidigm Corp. Deutsche Bank 16-Nov-17 1,814


Performance of FrontierCommunications Corp.



Performance of General CableCorp.



Performance of GramercyProperty Trust



Performance of Great PlainsEnergy Inc.






Performance of Healthways Inc. Deutsche Bank 16-Nov-17 17,892


Performance of Hess Corp. Deutsche Bank 16-Nov-17 5,715


Performance of HornbeckOffshore Services Inc.



Performance of Intel Corp. Deutsche Bank 16-Nov-17 31,309


Performance of InterDigital Inc. Deutsche Bank 16-Nov-17 (581)


Performance of J2 Global Inc. Deutsche Bank 16-Nov-17 (3,248)


Performance of Kaman Corp. Deutsche Bank 16-Nov-17 16,018


Performance of LigandPharmaceuticals Inc.



Performance ofMercadoLibre Inc.



Performance of MicrochipTechnology Inc.



Performance of MolinaHealthcare Inc.



Performance of National HealthInvestors Inc.



Performance of ONSemiconductor Corp.



Performance of ONSemiconductor Corp., 1.00%,12/01/20



Performance of Palo AltoNetworks Inc.



Performance of Pattern EnergyGroup Inc.



Performance of Proofpoint Inc.,cvt., 0.75%, 06/15/20



Performance of Salesforce.comInc.



Performance of ScorpioTankers Inc.



Performance of SEACORHoldings Inc.






Performance of Shutterfly Inc. Deutsche Bank 16-Nov-17 4,024


Performance of Spirit RealtyCapital Inc.



Performance of StarwoodProperty Trust Inc.



Performance of Take-TwoInteractive Software Inc.



Performance of TAL EducationGroup, ADR



Performance of TCP CapitalCorp.



Performance of The MedicinesCo.








Notionalamount



USD


Performance of The PricelineGroup Inc.



Performance of T-MobileUS Inc.



Performance of TTMTechnologies Inc.



Performance of VeriSign Inc. Deutsche Bank 16-Nov-17 305,646


Performance of VishayIntertechnology Inc.



Performance of Welltower Inc. Deutsche Bank 16-Nov-17 (80,800)


Performance of World WrestlingEntertainment Inc.



Performance of Yahoo! Inc. Deutsche Bank 16-Nov-17 (4,479)


Performance of Ship FinanceInternational Ltd.


HKD 255,200 1-month HKD LIBOR -0.41% Performance of ENN EnergyHoldings Ltd.


HKD 21,498,615 1-month HKD LIBOR -0.47% Performance of ShenzhouInternational Group HoldingsLtd.


HKD 670,680 1-month HKD LIBOR -1.50% Performance of YuexiuTransport Infrastructure Ltd.


JPY 49,101,600 1-month JPY LIBOR -0.35% Performance of Advantest Corp. Deutsche Bank 17-Nov-17 (66,413)JPY 2,284,700 1-month JPY LIBOR -0.35% Performance of AEON Financial

Service Co. Ltd.Deutsche Bank 17-Nov-17 471

JPY 50,343,000 1-month JPY LIBOR -0.35% Performance of DCM HoldingsCo. Ltd.


JPY 24,974,800 1-month JPY LIBOR -0.35% Performance of Kansai PaintCo. Ltd.


JPY 145,337,000 1-month JPY LIBOR -0.35% Performance of K’s HoldingsCorp.


JPY 3,981,000 1-month JPY LIBOR -0.35% Performance of LIXIL GroupCorp.


JPY 15,933,000 1-month JPY LIBOR -0.35% Performance of NagoyaRailroad Co. Ltd.


JPY 118,535,300 1-month JPY LIBOR -0.35% Performance of Nippon LightMetal Holdings Co. Ltd.


JPY 1,726,400 1-month JPY LIBOR -0.35% Performance of Resorttrust Inc. Deutsche Bank 17-Nov-17 253JPY 22,272,500 1-month JPY LIBOR -0.35% Performance of Sankyo Co. Ltd. Deutsche Bank 17-Nov-17 2,019JPY 4,312,300 1-month JPY LIBOR -0.35% Performance of SBI

Holdings Inc.Deutsche Bank 17-Nov-17 1,270

JPY 46,899,600 1-month JPY LIBOR -0.35% Performance of Suzuki MotorCorp.


JPY 166,066,900 1-month JPY LIBOR -0.35% Performance of Teijin Ltd. Deutsche Bank 17-Nov-17 (7,657)JPY 81,985,000 1-month JPY LIBOR -0.35% Performance of Terumo Corp. Deutsche Bank 17-Nov-17 (21,354)JPY 73,554,600 1-month JPY LIBOR -0.35% Performance of Tohoku Electric

Power Co. Inc.Deutsche Bank 17-Nov-17 26,615

JPY 45,644,400 1-month JPY LIBOR -0.35% Performance of Toppan PrintingCo. Ltd.


JPY 32,224,500 1-month JPY LIBOR -0.35% Performance of Unicharm Corp. Deutsche Bank 17-Nov-17 (7,916)JPY 497,574,000 1-month JPY LIBOR -0.35% Performance of Yamada Denki

Co. Ltd.Deutsche Bank 17-Nov-17 0

JPY 23,020,000 1-month JPY LIBOR -1.25% Performance of OSG Corp. Deutsche Bank 17-Nov-17 314JPY 123,848,000 1-month JPY LIBOR -3.50% Performance of EDION Corp. Deutsche Bank 17-Nov-17 30,939JPY 14,365,000 1-month JPY LIBOR -6.00% Performance of Japan Airport

Terminal Co. Ltd.Deutsche Bank 17-Nov-17 2,182

JPY 19,000,000 1-month JPY LIBOR -6.50% Performance of NipponCeramic Co. Ltd.


JPY 680,505 1-month USD LIBOR -0.35% Performance of The Oita BankLtd.


JPY 2,254,640 1-month USD LIBOR -0.35% Performance of YamaguchiFinancial Group Inc.


JPY 120,873 1-month USD LIBOR -1.50% Performance of The Bank ofNagoya Ltd.


JPY 701,639 1-month USD LIBOR -1.50% Performance of The YamagataBank Ltd.








Notionalamount



USD

JPY 90,440,000 Performance of AdvantestCorp., cvt., Reg S, zero cpn.,03/14/19

1-month JPY LIBOR +0.90% Deutsche Bank 17-Nov-17 84,599

EUR 1,951,198 Performance of Alstria OfficeREIT AG, cvt., senior note, RegS, 2.75%, 06/14/18

1-month EUR LIBOR +0.90% Deutsche Bank 17-Nov-17 116,712

EUR 518,656 Performance of AroundtownProperty Holdings PLC, cvt.,senior note, Reg S, 3.00%,05/05/20


JPY 89,110,000 Performance of DCM HoldingsCo. Ltd., zero cpn., 12/21/20


JPY 119,880 Performance of EBARA Corp. 1-month JPY LIBOR +0.75% Deutsche Bank 17-Nov-17 54JPY 149,700,000 Performance of EDION Corp.,

senior note, Reg S, cvt., zerocpn., 10/01/21

1-month JPY LIBOR +0.90% Deutsche Bank 17-Nov-17 (33,626)

EUR 914,160 Performance of Fresenius SE &Co. KGaA, cvt., senior note,zero cpn., 09/24/19


JPY 182,835,000 Performance of Japan AirportTerminal Co. Ltd., cvt., seniornote, zero cpn., 03/06/20


JPY 113,300,000 Performance of Kansai PaintCo. Ltd., zero cpn., 6/17/22


JPY 216,090,000 Performance of K’s HoldingsCorp., cvt., senior note, Reg S,zero cpn., 12/20/19


JPY 21,095,000 Performance of Lixil GroupCorp., cvt., senior note, Reg S,zero cpn., 03/04/22


JPY 34,132,500 Performance of NagoyaRailroad Co. Ltd., cvt., Reg S,zero cpn., 12/11/24

1-month JPY LIBOR +0.90% Deutsche Bank 17-Nov-17 167

JPY 24,400,000 Performance of NipponCeramic Co. Ltd., cvt., seniornote, Reg S, zero cpn.,04/24/18


JPY 124,625,000 Performance of Nippon LightMetal Holdings Co .Ltd., cvt.,zero cpn., senior note,12/10/18


JPY 28,970,000 Performance of OSG Corp., RegS, cvt., zero cpn., 04/04/22


EUR 483,662 Performance of SalzgitterFinance BV, cvt., senior note,2.00%, 11/08/17


JPY 111,430,000 Performance of SANKYO Co.Ltd., cvt., senior note, Reg S,zero cpn., 07/23/20


JPY 11,077,500 Performance of SBIHoldings Inc., cvt., senior note,Reg S, zero cpn., 11/02/17


JPY 72,525,000 Performance of Suzuki MotorCorp., Reg S, zero cpn.,03/31/23


JPY 298,942,500 Performance of Teijin Ltd., cvt.,senior note, Reg S, zero cpn.,12/10/21


JPY 137,225,000 Performance of Terumo Corp.,cvt., senior note, Reg S, zerocpn., 12/06/21


JPY 214,462,500 Performance of Tohoku ElectricPower Co. Inc., cvt., seniornote, Reg S, zero cpn.,12/03/18


JPY 197,125,000 Performance of Tohoku ElectricPower Co. Inc., cvt., seniornote, Reg S, zero cpn.,12/03/20








Notionalamount



USD

JPY 91,340,000 Performance of Toppan PrintingCo. Ltd., cvt., zero cpn.,12/19/19

1-month JPY LIBOR +0.90% Deutsche Bank 17-Nov-17 563

JPY 60,187,500 Performance of UnicharmCorp., cvt., senior note, Reg S,zero cpn., 09/25/20


JPY 726,437,500 Performance of Yamada DenkiCo. Ltd., cvt., senior note, RegS, zero cpn., 06/28/19


GBP 1,903,961 1-month USD LIBOR -0.40% Performance of BritishAmerican Tobacco PLC


NOK 6,652,072 1-month EUR LIBOR -0.40% Performance of Marine HarvestASA

Deutsche Bank 01-Dec-17 25,362

NOK 2,515,763 1-month EUR LIBOR -0.75% Performance of Stolt OffshoreSA


EUR 6,656,594 Performance of Marine HarvestASA, cvt., senior note, Reg S,0.875%, 05/06/19

1-month EUR LIBOR +0.90% Deutsche Bank 01-Dec-17 (7,772)

EUR 189,230 1-month EUR LIBOR -0.50% Performance of Fugro NV, IDR Deutsche Bank 04-Dec-17 19,403TWD 2,937,119 1-month USD LIBOR -0.82% Performance of Advanced

SemiconductorEngineering Inc.


GBP 759,026 1-month EUR LIBOR -0.40% Performance of Playtech PLC Deutsche Bank 19-Dec-17 (11,799)GBP 401,400 1-month EUR LIBOR -1.00% Performance of Hansteen

Holdings PLCDeutsche Bank 19-Dec-17 (5,964)

USD 264,375 Performance of Bank of NagoyaLtd., cvt., senior note, Reg S,zero cpn., 03/26/20

1-month USD LIBOR +0.90% Deutsche Bank 19-Dec-17 (625)

USD 731,500 Performance of The Oita BankLtd., cvt., senior note, Reg S,zero cpn., 12/18/19

1-month USD LIBOR +0.90% Deutsche Bank 19-Dec-17 1,750

USD 511,250 Performance of Yamagata BankLtd., cvt., senior note, zerocpn., 04/22/19

1-month USD LIBOR +0.90% Deutsche Bank 19-Dec-17 3,125

EUR 103,829 1-month EUR LIBOR -2.50% Performance of Nyrstar NV Deutsche Bank 15-Jan-18 (6,738)EUR 224,840 Performance of Nyrstar NV,

cvt., 5.00%, 07/11/221-month EUR LIBOR +0.90% Deutsche Bank 15-Jan-18 7,442


Performance of Ship FinanceInternational Ltd.

Deutsche Bank 18-Apr-18 (21,669)

USD 3,880,000 3-month USD LIBOR Performance of iBoxx USDLiquid High Yield Index

JPMorgan Chase Bank 20-Mar-17 (4,212)

USD 17,730,000 3-month USD LIBOR Performance of iBoxx USDLiquid Investment Grade Index

JPMorgan Chase Bank 20-Mar-17 34,738


1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 (489)




1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 2,901



USD 70,868 Performance of Automatic DataProcessing Inc.


USD 262,679 Performance of Cardtronics Inc. 1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 20,145USD 570,630 Performance of Ciena Corp. 1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 88,566USD 88,668 Performance of Equifax Inc. 1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 3,450USD 52,103 Performance of ExlService

Holdings Inc.1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 2,486

USD 113,252 Performance of Expedia Inc. 1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 (11,040)USD 80,799 Performance of Genpact Ltd. 1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 1,238USD 121,117 Performance of Huron

Consulting Group Inc.1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 (565)

USD 265,695 Performance of LarganPrecision Co. Ltd.


USD 71,763 Performance ofManpowerGroup Inc.


USD 3,752 Performance of Microsoft Corp. 1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 155USD 193,222 Performance of PayPal

Holdings Inc.1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 2,177

USD 626,247 Performance of TransUnion 1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 32,069







Notionalamount



USD

USD 345,425 Performance of VeriFoneSystems Inc.


USD 75,078 Performance of West Corp. 1-month USD LIBOR +0.40% JPMorgan Chase Bank 05-May-17 1,746USD 45,781 1-month USD LIBOR -0.17% Performance of Standard &

Poors United States IndexJPMorgan Chase Bank 10-May-17 (910)

USD 31,183 1-month USD LIBOR -0.23% Performance of DB HybridBasket 01

JPMorgan Chase Bank 10-May-17 (360)

USD 175,614 1-month USD LIBOR -0.25% Performance of S&P SmallCap600 Total Return Index

JPMorgan Chase Bank 10-May-17 (3,837)

USD 66,450 1-month USD LIBOR -0.30% Performance of Dow Jones UKConsumer Goods Total ReturnIndex



JPMorgan Chase Bank 10-May-17 1,562

USD 47,504 1-month USD LIBOR -0.30% Performance of S&PTransportation Select IndustryIndex (TR)

JPMorgan Chase Bank 10-May-17 332

USD 28,466 1-month USD LIBOR -0.35% Performance of S&P North USATechnology Total Return Index


USD 111,631 1-month USD LIBOR -0.43% Performance of DB HybridBasket 01


USD 8,130 1-month USD LIBOR -0.45% Performance of S&P Smallcap600 Growth Index


USD 59,048 1-month USD LIBOR -0.80% Performance of Russell 2000Total Return Growth Index


USD 161,197 1-month USD LIBOR -0.80% Performance of Russell 2000Total Return Index




USD 15,221 1-month USD LIBOR -1.15% Performance of ConsumerStaples Select Sector IndexNTR


USD 2,529,782 Performance of Thermo FisherScientific Inc.

1-month USD LIBOR +0.35% JPMorgan Chase Bank 05-Jan-18 (41,113)

USD 2,010,770 Performance of BectonDickinson and Co.

1-month USD LIBOR +0.35% JPMorgan Chase Bank 10-Jan-18 (44,211)

USD 34,587,685 1-month USD LIBOR -0.30% Performance of S&P 500 Index JPMorgan Chase Bank 02-Feb-18 294,965USD 1,909,831 Performance of Allergan PLC 1-month USD LIBOR +0.35% JPMorgan Chase Bank 02-Feb-18 153,952USD 2,250,186 Performance of Costco

Wholesale Corp.1-month USD LIBOR +0.35% JPMorgan Chase Bank 02-Feb-18 0

USD 1,296,532 Performance of DominosPizza Inc.

1-month USD LIBOR +0.35% JPMorgan Chase Bank 02-Feb-18 (4,397)

USD 1,321,275 Performance of FedEx Corp. 1-month USD LIBOR +0.35% JPMorgan Chase Bank 02-Feb-18 (81,119)EUR 259,592 EUR-EONIA -0.40% Performance of Airbus Group

SEMorgan Stanley 13-Feb-17 (11,176)

EUR 280,566 EUR-EONIA -0.40% Performance of DeutscheLufthansa AG

Morgan Stanley 13-Feb-17 8,713

EUR 692,720 EUR-EONIA -2.50% Performance of iShares STOXXEurope 600 UCITS ETF

Morgan Stanley 13-Feb-17 (45,351)

EUR 403,123 Performance of Accor SA 1-month EUR LIBOR +0.50% Morgan Stanley 13-Feb-17 (6,668)EUR 213,070 Performance of Air France-KLM 1-month EUR LIBOR +0.50% Morgan Stanley 13-Feb-17 (7,756)EUR 120,719 Performance of Moncler SpA 1-month EUR LIBOR +0.50% Morgan Stanley 13-Feb-17 23,590EUR 392,256 Performance of Peugeot SA 1-month EUR LIBOR +0.50% Morgan Stanley 13-Feb-17 47,059EUR 593,770 Performance of Plastic

Omnium SA1-month EUR LIBOR +0.50% Morgan Stanley 13-Feb-17 32,301

EUR 168,421 EUR-EONIA -0.40% Performance of Volkswagen AG,pfd.

Morgan Stanley 14-Feb-17 (15,356)


Morgan Stanley 20-Mar-17 (7,666)

AUD 339,533 AUD-RBACR -1.00% Performance of TabcorpHoldings Ltd.

Morgan Stanley 03-May-17 (6,113)

AUD 1,884,613 Performance of DiversifiedUtility & Energy Trusts

AUD-RBACR +0.55% Morgan Stanley 03-May-17 13,442

AUD 395,297 Performance of Tatts GroupLtd.

AUD-RBACR +0.55% Morgan Stanley 03-May-17 18,466


1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (29,143)



USD 143,361 Performance of AdobeSystems Inc.








Notionalamount



USD

USD 6,602 Performance of AdvancedProcess Systems Corp.

1-month USD LIBOR +0.55% Morgan Stanley 15-May-17 370

USD 157,208 Performance of AdvancedSemiconductorEngineering Inc.

1-month USD LIBOR Morgan Stanley 15-May-17 (6,614)



USD 89,781 Performance of Alibaba GroupHolding Ltd., ADR


USD 684,858 Performance of Alliance DataSystems Corp.




USD 403,042 Performance of AnalogDevices Inc.


USD 175,652 Performance of AristaNetworks Inc.

1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (123)

USD 522,048 Performance of AT&T Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 11,156USD 98,849 Performance of Atento SA 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 2,890USD 755,967 Performance of Automatic Data

Processing Inc.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 35,676

USD 155,325 Performance of Baidu.com,ADR


USD 97,660 Performance of Blackbaud Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (1,188)USD 139,789 Performance of Cardtronics Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 3,466USD 492,514 Performance of Cavium Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (10,540)USD 25,923 Performance of Ciena Corp. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 708USD 496,565 Performance of Cognizant

Technology Solutions Corp., A1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (6,241)

USD 184,176 Performance of DISH NetworkCorp., A


USD 496,008 Performance of eBay Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 1,496EUR 266,066 Performance of Edenred 1-month EUR LIBOR +0.50% Morgan Stanley 15-May-17 477USD 239,780 Performance of EPAM

Systems Inc.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 5,095

USD 484,271 Performance of Equifax Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 4,851USD 1,090,694 Performance of ExlService

Holdings Inc.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 1,124

USD 74,495 Performance of Expedia Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (2,246)GBP 312,076 Performance of Experian PLC 1-month GBP LIBOR +0.50% Morgan Stanley 15-May-17 32,146USD 678,624 Performance of Facebook Inc.,

A1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (36,093)

USD 1,202,490 Performance of FleetCorTechnologies Inc.


USD 873,603 Performance of Genpact Ltd. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 7,432USD 1,324,519 Performance of Global

Payments Inc.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (24,655)

USD 251,331 Performance of Google Inc., A 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (8,574)USD 296,223 Performance of Google Inc., C 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (12,033)USD 160,824 Performance of Huron

Consulting Group Inc.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (5,263)

USD 817,364 Performance of Inphi Corp. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (34,097)USD 307,506 Performance of Intuit Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (9,297)EUR 934,061 Performance of Irish

Continental Group PLC1-month EUR LIBOR +0.50% Morgan Stanley 15-May-17 45,408

USD 565,292 Performance of Itron Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (27,325)USD 168,025 Performance of

ManpowerGroup Inc.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (4,029)

USD 150,574 Performance of Maxlinear Inc.,A

1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 1,483

USD 288,374 Performance of MicrochipTechnology Inc.


USD 101,658 Performance of Microsoft Corp. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (1,004)USD 675,115 Performance of Netflix Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (8,857)USD 316,178 Performance of ORBCOMM Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (21,466)USD 784,295 Performance of PayPal

Holdings Inc.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (2,277)

USD 657,242 Performance of PureStorage Inc., A


USD 1,042,939 Performance ofQUALCOMM Inc.








Notionalamount



USD

USD 150,958 Performance of QuantennaCommunications Inc.


USD 330,142 Performance of Robert HalfInternational Inc.


USD 87,202 Performance of Salesforce.comInc.


USD 496,666 Performance of SamsungElectronics Co. Ltd.


USD 692,843 Performance of SeagateTechnology PLC


HKD 4,103,558 Performance of SemiconductorManufacturing InternationalCorp.

1-month HKD LIBOR +0.50% Morgan Stanley 15-May-17 103,478

USD 877,303 Performance of The PricelineGroup Inc.


USD 421,970 Performance of Total SystemServices Inc.


USD 156,885 Performance of TriNetGroup Inc.


USD 95,921 Performance of Vantiv Inc., A 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 2,121USD 993,161 Performance of VeriFone

Systems Inc.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (14,311)

USD 282,286 Performance of VeriSign Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (9,761)USD 1,265,853 Performance of Visa Inc., A 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (26,276)USD 320,514 Performance of WageWorks Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (8,185)USD 85,094 Performance of West Corp. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (689)USD 542,569 Performance of Western Digital

Corp.1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 4,474

USD 807,768 Performance of WEX Inc. 1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 3,149USD 123,131 Performance of Win

Semiconductors Corp.1-month USD LIBOR +0.55% Morgan Stanley 15-May-17 (2,704)

USD 46,926 Performance of ZillowGroup Inc., A

1-month USD LIBOR +0.50% Morgan Stanley 15-May-17 (937)

USD 17,228 Performance of ZillowGroup Inc., C


USD 957,475 1-month USD LIBOR -0.25% Performance of Dow Jones UKConsumer Goods Total ReturnIndex

Morgan Stanley 18-May-17 3,251

USD 2,061,771 1-month USD LIBOR -0.25% Performance of NASDAQ 100Total Return Index


USD 1,579,708 1-month USD LIBOR -0.25% Performance of PhiladelphiaStock Exchange SemiconductorIndex


USD 3,671,050 1-month USD LIBOR -0.25% Performance of S&P NorthAmerican Technology SoftwareIndex




USD 1,086,983 1-month USD LIBOR -0.25% Performance of Standard &Poors United States Index


USD 1,131,165 1-month USD LIBOR -0.30% Performance of S&P North USATechnology Total Return Index


USD 2,316,320 1-month USD LIBOR -0.35% Performance of ConsumerDiscretionary Select SectorTotal Return Index




USD 1,944,752 1-month USD LIBOR -0.35% Performance of S&P MidCap400 Total Return Index


USD 3,053,909 1-month USD LIBOR -0.40% Performance of S&P Smallcap600 Growth Index


USD 2,042,600 1-month USD LIBOR -0.40% Performance of S&P SmallCap600 Total Return Index


USD 2,365,695 1-month USD LIBOR -0.50% Performance of DB HybridBasket 01


USD 182,242 1-month USD LIBOR -0.50% Performance of Dow JonesTransportation Average TotalReturn Index


USD 1,438,849 1-month USD LIBOR -0.55% Performance of S&PTransportation Select IndustryIndex (TR)








Notionalamount



USD

USD 2,865,937 1-month USD LIBOR -0.90% Performance of Russell 2000Total Return Index


USD 1,139,316 1-month USD LIBOR -1.00% Performance of Dow Jones USSelect Communications TotalReturn Index


USD 2,451,229 1-month USD LIBOR -1.00% Performance of Russell 2000Total Return Growth Index


USD 829,298 1-month USD LIBOR -1.35% Performance of ConsumerStaples Select Sector IndexNTR


USD 1,211,656 Performance of Alphabet Inc. USD-FED EFF +0.50% Morgan Stanley 24-May-17 (15,596)USD 1,486,270 Performance of Brunswick

Corp.USD-FED EFF +0.50% Morgan Stanley 24-May-17 261,326

USD 404,641 Performance of ContinentalResources Inc.

USD-FED EFF +0.50% Morgan Stanley 24-May-17 40,825

USD 854,787 Performance of MonsterBeverage Corp.

USD-FED EFF +0.50% Morgan Stanley 24-May-17 (80,997)

USD 1,012,824 Performance of NewfieldExploration Co.

USD-FED EFF +0.50% Morgan Stanley 24-May-17 (70,272)

USD 3,030,904 Performance of NVR Inc. USD-FED EFF +0.50% Morgan Stanley 24-May-17 301,427USD 2,464,594 Performance of Rio Tinto PLC,

ADRUSD-FED EFF +0.50% Morgan Stanley 24-May-17 70,171

USD 1,553,121 Performance of SwiftTransportation Co.


USD 2,240,280 Performance of Take-TwoInteractive Software Inc.


USD 122,002 Performance of AnalogDevices Inc.

USD-FED EFF +0.40% Morgan Stanley 01-Jun-17 (1,482)

USD 1,640,456 Performance of FMCTechnologies Inc.

USD-FED EFF +0.40% Morgan Stanley 01-Jun-17 58,637

USD 1,002,363 Performance of Level 3Communications Inc.


USD 1,864,899 Performance of ReynoldsAmerican Inc.


USD 679,916 Performance of Spectra EnergyCorp.


USD 899,756 Performance of TimeWarner Inc.


HKD 2,504,081 Performance of Weichai PowerCo. Ltd.

HKD-HONIX +0.95% Morgan Stanley 13-Jul-17 46,826

CHF 2,408,742 Performance of Actelion Ltd. TOIS +0.65% Morgan Stanley 19-Jul-17 225,372CHF 822,890 TOIS -0.40% Performance of Compagnie

Financiere Richemont SAMorgan Stanley 19-Jul-17 (11,981)

USD 513,550 USD-FED EFF -0.35% Performance of AT&T Inc. Morgan Stanley 08-Nov-17 (32,660)USD 604,036 USD-FED EFF -0.35% Performance of

CenturyLink Inc.Morgan Stanley 08-Nov-17 (6,604)

USD 685,798 USD-FED EFF -0.35% Performance of Enbridge Inc. Morgan Stanley 08-Nov-17 (149)USD 456,138 USD-FED EFF -0.35% Performance of Johnson

Controls International PLCMorgan Stanley 08-Nov-17 25,928

USD 451,289 USD-FED EFF -0.35% Performance of LinearTechnology Corp.

Morgan Stanley 08-Nov-17 322

USD 1,194,794 USD-FED EFF -0.35% Performance of Netflix Inc. Morgan Stanley 08-Nov-17 (65,627)USD 492,095 USD-FED EFF -0.35% Performance of OMEGA

Healthcare Investors Inc.Morgan Stanley 08-Nov-17 (28,336)

USD 1,341,449 USD-FED EFF -1.81% Performance of BritishAmerican Tobacco PLC, ADR

Morgan Stanley 08-Nov-17 (36,930)

USD 487,472 USD-FED EFF -2.41% Performance of SPDR S&P Oil& Gas Exploration & ProductionETF

Morgan Stanley 08-Nov-17 20,419

GBP 315,448 GBP-SONIA -0.35% Performance of Burberry GroupPLC

Morgan Stanley 18-Jan-18 (67,189)

GBP 81,457 GBP-SONIA -0.35% Performance of Thomas CookGroup PLC

Morgan Stanley 18-Jan-18 (20,961)

GBP 924,242 Performance of Anglo AmericanPLC

1-month GBP LIBOR +0.50% Morgan Stanley 18-Jan-18 457,347

GBP 649,370 Performance of AntofagastaPLC


GBP 444,313 Performance of InternationalConsolidated Airlines Group SA


GBP 1,019,848 Performance of Rio Tinto PLC 1-month GBP LIBOR +0.50% Morgan Stanley 18-Jan-18 354,378







Notionalamount



USD

GBP 250,955 Performance of Wizz AirHoldings PLC, Reg S


EUR 1,540,705 Performance of E.ON SE EUR-EONIA +0.65% Morgan Stanley 30-Jan-18 114,496EUR 582,282 EUR-EONIA -0.35% Performance of Adidas AG Morgan Stanley 16-Apr-18 (23,881)EUR 1,338,913 EUR-EONIA -0.40% Performance of LVMH Moet

Hennessy Louis Vuitton SEMorgan Stanley 16-Apr-18 (40,008)

GBP 139,828 GBP-SONIA -0.30% Performance of JD SportsFashion PLC

Morgan Stanley 16-Apr-18 3,984

EUR 38,267 Performance of Anima HoldingSpA, Reg S

1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 3,591

GBP 108,049 Performance of Barclays PLC 1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 (2,443)EUR 1,086,085 Performance of BNP Paribas

SA1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 25,301

GBP 98,692 Performance of CrodaInternational PLC


GBP 432,399 Performance of HikmaPharmaceuticals PLC


EUR 1,584,854 Performance of Iliad SA 1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 60,283GBP 304,589 Performance of ITV PLC 1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 38,556EUR 937,158 Performance of Remy Cointreau

SA1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 6,453

GBP 115,882 Performance of RSA InsuranceGroup PLC


GBP 6,581 Performance of Smith &Nephew PLC

1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 425

GBP 112,983 Performance of Smiths GroupPLC

1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 (787)

EUR 1,233,741 Performance of SocieteGenerale SA


GBP 359,631 Performance of Sports DirectInternational PLC

1-month GBP LIBOR +0.50% Morgan Stanley 16-Apr-18 (6,204)

CHF 1,493,187 Performance of LafargeHolcimLtd.

1-month GBP LIBOR +0.50% Morgan Stanley 25-Jul-18 5,466

CHF 1,457,348 Performance of Nestle SA 1-month GBP LIBOR +0.50% Morgan Stanley 25-Jul-18 42,810CHF 1,354,815 Performance of Syngenta AG 1-month GBP LIBOR +0.50% Morgan Stanley 25-Jul-18 (18,180)USD 1,649,311 USD-FED EFF -0.40% Performance of Technip SA Morgan Stanley 10-Aug-18 (52,642)USD 273,523 USD-FED EFF Performance of Tesla

Motors Inc.Morgan Stanley 20-Sep-18 (35,299)

USD 407,933 USD-FED EFF -0.35% Performance of AlbemarleCorp.

Morgan Stanley 20-Sep-18 (27,876)

USD 234,790 USD-FED EFF -0.35% Performance of Allegiant TravelCo.

Morgan Stanley 20-Sep-18 467

USD 1,267,251 USD-FED EFF -0.35% Performance of C.H. RobinsonWorldwide Inc.


USD 395,113 USD-FED EFF -0.35% Performance of Cummins Inc. Morgan Stanley 20-Sep-18 (67,103)USD 420,322 USD-FED EFF -0.35% Performance of Dollar Tree Inc. Morgan Stanley 20-Sep-18 48,609USD 695,788 USD-FED EFF -0.35% Performance of Domtar Corp. Morgan Stanley 20-Sep-18 (50,704)USD 178,801 USD-FED EFF -0.35% Performance of Dr. Pepper

Snapple Group Inc.Morgan Stanley 20-Sep-18 (635)

USD 168,861 USD-FED EFF -0.35% Performance of ElectronicArts Inc.

Morgan Stanley 20-Sep-18 5,255

USD 247,823 USD-FED EFF -0.35% Performance of InternationalBusiness Machines Corp.


USD 683,209 USD-FED EFF -0.35% Performance of iShares MSCIJapan ETF


USD 163,285 USD-FED EFF -0.35% Performance of NewellBrands Inc.


USD 225,628 USD-FED EFF -0.35% Performance of RyderSystem Inc.


USD 4,272,329 USD-FED EFF -0.35% Performance of SPDR S&P 500ETF Trust


USD 226,167 USD-FED EFF -0.35% Performance of TheCheesecake Factory Inc.


USD 158,646 USD-FED EFF -0.35% Performance of The Mosaic Co. Morgan Stanley 20-Sep-18 (9,396)USD 268,584 USD-FED EFF -0.35% Performance of Werner

Enterprises Inc.Morgan Stanley 20-Sep-18 (34,610)

USD 374,018 USD-FED EFF -0.35% Performance of Western UnionCo.


USD 246,751 USD-FED EFF -0.35% Performance of WyndhamWorldwide Corp.








Notionalamount



USD

USD 119,337 USD-FED EFF -0.35% Performance of XPOLogistics Inc.


USD 247,811 USD-FED EFF -0.51% Performance of W.W.Grainger Inc.


USD 218,000 USD-FED EFF -0.71% Performance of FossilGroup Inc.


USD 270,306 USD-FED EFF -0.79% Performance of iShares 20+Year Treasury Bond ETF


USD 466,178 USD-FED EFF -0.81% Performance of ConsumerDiscretionary Select SectorSPDR ETF


USD 841,670 USD-FED EFF -0.86% Performance of Utilities SelectSector SPDR ETF


USD 398,077 USD-FED EFF -0.91% Performance of iShares Russell2000 ETF

Morgan Stanley 20-Sep-18 510

USD 475,060 USD-FED EFF -1.06% Performance of ConsumerStaples Select Sector SPDRETF


USD 111,144 USD-FED EFF -3.21% Performance of PolarisIndustries Inc.


EUR 255,507 EUR-EONIA -0.40% Performance of Airbus GroupSE


EUR 468,891 EUR-EONIA -0.40% Performance of DeutscheAnnington Immobilien SE,144A


EUR 121,015 EUR-EONIA -0.50% Performance of Fiat ChryslerAutomobiles NV


EUR 1,400,425 EUR-EONIA -0.50% Performance of Kone OYJ Morgan Stanley 27-Sep-18 (34,975)EUR 150,672 EUR-EONIA -0.50% Performance of Proximus SADP Morgan Stanley 27-Sep-18 (3,971)EUR 2,109,020 Performance of Celesio AG EUR-EONIA +0.65% Morgan Stanley 27-Sep-18 29,808EUR 946,924 Performance of Conwert

Immobilien Invest SEEUR-EONIA +0.65% Morgan Stanley 27-Sep-18 3,058

EUR 261,169 Performance of Kuka AG, EUR-EONIA +0.65% Morgan Stanley 27-Sep-18 21,116EUR 2,481,978 Performance of ThyssenKrupp

AGEUR-EONIA +0.65% Morgan Stanley 27-Sep-18 140,788

EUR 2,379,017 Performance of Vivendi SA EUR-EONIA +0.65% Morgan Stanley 27-Sep-18 9,016GBP 622,933 Performance of Micro Focus

International PLCGBP-SONIA +0.65% Morgan Stanley 01-Oct-18 2,049

GBP 688,695 Performance of Sky PLC GBP-SONIA +0.65% Morgan Stanley 01-Oct-18 2,660JPY 350,441,522 MUTSC -0.40% Performance of JX

Holdings Inc.Morgan Stanley 01-Nov-18 (349,205)

JPY 215,241,746 Performance of Calsoni KanseiCorp.

MUTSC +0.55% Morgan Stanley 01-Nov-18 38,596

JPY 342,243,440 Performance of TonenGeneralSekiyu K.K.

MUTSC +0.55% Morgan Stanley 01-Nov-18 393,683

USD 3,666,960 Performance of Yahoo! Inc. USD-FED EFF +0.40% Morgan Stanley 24-Dec-18 12,586USD 2,671,356 USD-FED EFF -0.35% Performance of Alibaba Group

Holding Ltd., ADRMorgan Stanley 24-Dec-18 37,485

2,747,342


Tradingcurrency

Notionalamount



USD

USD 320,000 3-month USD LIBOR Performance of iBoxx USDLiquid High Yield Index

JPMorgan Chase Bank 20-Mar-17 (392)


JPMorgan Chase Bank 20-Mar-17 (18,877)

USD 480,000 3-month USD LIBOR Performance of iBoxx USDLiquid Investment Grade Index

Morgan Stanley 20-Mar-17 (6,441)

(25,710)







Tradingcurrency

Notionalamount



USD




3-month USD BBA LIBOR Goldman Sachs 20-Mar-17 439,943



(192,171)


Tradingcurrency

Notionalamount



USD





(44,710)


Tradingcurrency

Notionalamount



USD

USD 750,000 Performance of Markit iBoxxUSD Liquid Leveraged LoansIndex Series 1 Version 1


USD 600,000 Performance of Markit iBoxxUSD Liquid Leveraged LoansIndex Series 1 Version 1


(19,507)

Note 11 — Open positions on credit default swap contractsAs at December 31, 2016 the Company had entered into the following outstanding contracts:


Nominal Description Interestpaid/received

%

Counterparty Buy/SellProtection

Tradingcurrency

MarketvalueUSD


USD

200,000 Government of Brazil, senior bond,12.25%, 03/06/30, Sep. 2017 1.00 Barclays Bank Sell USD 433 3,661

5,000,000 Government of Brazil, senior bond,4.25%, 01/07/25, Jun. 2021 1.00 Barclays Bank Sell USD (311,698) 161,905

2,000,000 Government of Brazil, senior bond,4.25%, 01/07/25, Dec. 2021 1.00 Barclays Bank Sell USD (158,370) 50,973

(469,635) 216,539



%


Tradingcurrency

MarketvalueEUR


EUR

3,890,000 CDX.NA.IG.27, Dec. 2021 1.00 Barclays Bank Buy USD (54,899) (20,714)2,400,000 ITRX.EUR.26, Dec. 2021 1.00 Barclays Bank Buy EUR (31,161) (3,043)

(86,060) (23,757)








%


Tradingcurrency

MarketvalueEUR


EUR


(166,650) (46,466)



%


Tradingcurrency

MarketvalueEUR


EUR


(63,304) (15,062)



%


Tradingcurrency

MarketvalueUSD


USD

2,400,000 Beazer Homes USA Inc., seniornote, 9.125%, 05/15/19, Jun.2019 5.00 Barclays Bank Buy USD (177,471) (284,271)

5,000,000 MGM Resorts International, seniornote, 6.75%, 10/01/20, Dec.2020 5.00 Barclays Bank Buy USD (670,157) (51,697)

2,500,000 Safeway Inc., senior bond, 7.25%,02/01/31, Sep. 2019 5.00 Barclays Bank Buy USD (258,223) 9,678

2,400,000 Sanmina-SCI Corp., senior sub.note, 8.125%, 03/01/16, Jun.2019 5.00 Barclays Bank Buy USD (264,712) 38,992

1,000,000 Universal Health Services Inc.,first lien, 144A, 3.75%,08/01/19, Sep. 2019 5.00 Barclays Bank Buy USD (118,217) (2,971)

475,000 Rite Aid Corp., senior bond,7.70%, 02/15/27, Jun. 2021 5.00 Citibank Buy USD (83,576) (9,658)

2,500,000 Tenet Healthcare Corp., seniornote, 6.875%, 11/15/31, Mar.2020 5.00 Citibank Buy USD 63,868 176,462

600,000 Olin Corp., senior bond, 5.50%,08/15/22, Jun. 2021 1.00 Goldman Sachs Buy USD 27,073 (20,335)

5,000,000 PHH Corp., senior note, 7.375%,09/01/19, Sep. 2019 5.00 Goldman Sachs Buy USD (210,075) (239,696)

1,000,000 Sanmina-SCI Corp., senior sub.note, 8.125%, 03/01/16, Jun.2019 5.00 Goldman Sachs Buy USD (110,297) 14,520

1,750,000 Tenet Healthcare Corp., seniornote, 6.875%, 11/15/31, Mar.2019 5.00 Goldman Sachs Buy USD (29,340) 62,684

1,000,000 Rite Aid Corp., senior bond,7.70%, 02/15/27, Jun. 2021 5.00 JPMorgan Chase Bank Buy USD (175,951) (12,649)

2,000,000 Tenet Healthcare Corp., seniornote, 6.875%, 11/15/31, Mar.2019 5.00 JPMorgan Chase Bank Buy USD (33,532) 99,764

1,290,000 The AES Corp., senior note, FRN,3.93067%, 06/01/19, Jun. 2021 5.00 JPMorgan Chase Bank Buy USD (157,306) (8,954)

5,000,000 XPO CNW Inc., senior bond,7.25%, 01/15/18, Mar. 2018 5.00 JPMorgan Chase Bank Buy USD (140,428) 79,504

7,770,000 MCDX.NA.27, Dec. 2021 1.00 Citibank Sell USD 116,825 35,9411,290,000 Calpine Corp., senior note,

5.375%, 01/15/23, Jun. 2021 5.00 JPMorgan Chase Bank Sell USD 105,440 29,823

(2,116,079) (82,863)



Note 11 — Open positions on credit default swap contracts (continued)





%


Tradingcurrency

MarketvalueEUR


EUR


(232,752) (65,452)



%


Tradingcurrency

MarketvalueUSD


USD

950,000 Government of Turkey, seniorbond, 11.875%, 01/15/30, Dec.2021 1.00 Bank of America Buy USD 74,110 250

400,000 Enel SpA, senior bond, 4.75%,06/12/18, Dec. 2021 1.00 Barclays Bank Buy EUR (1,618) (3,055)

7,750,000 CDX.NA.HY.27 Version 1, Dec.2021 5.00 Deutsche Bank Buy USD (491,164) (170,396)

450,000 Government of China, senior bond,7.50%, 10/28/27, Jun. 2021 1.00 Deutsche Bank Buy USD 1,392 (547)

400,000 Enel SpA, senior bond, 4.75%,06/12/18, Dec. 2021 1.00 JPMorgan Chase Bank Buy EUR (1,618) (3,288)

1,649,000 Government of Mexico, seniorbond, 5.95%, 03/19/19, Dec.2021 1.00 JPMorgan Chase Bank Buy USD 41,317 (1,709)

1,777,000 Government of South Africa,5.50%, 03/09/20, Dec. 2021 1.00 JPMorgan Chase Bank Buy USD 92,635 (31,576)

1,774,000 Government of Turkey, seniorbond, 11.875%, 01/15/30, Sep.2020 1.00 JPMorgan Chase Bank Buy USD 75,414 (62,237)

972,000 Government of Turkey, seniorbond, 11.875%, 01/15/30, Dec.2020 1.00 JPMorgan Chase Bank Buy USD 117,915 30,042

850,000 Government of Turkey, seniorbond, 11.875%, 01/15/30, Jun.2021 1.00 JPMorgan Chase Bank Buy USD 60,004 (7,212)

800,000 Intesa Sanpaolo SpA, FRN,0.00%, 03/03/17, Dec. 2021 1.00 JPMorgan Chase Bank Buy EUR 15,796 (11,704)

391,000 iTraxx Europe Crossover Series 24Version 3, Dec. 2020 5.00 JPMorgan Chase Bank Buy EUR (39,219) (13,768)

1,909,000 Government of Argentina, seniorbond, Reg S, 7.625%, 04/22/46,Jun. 2017 5.00 Morgan Stanley Buy USD (40,634) 37,896

634,000 Government of South Africa,5.50%, 03/09/20, Dec. 2021 1.00 Morgan Stanley Buy USD 33,050 (8,486)

795,000 iTraxx Asia ex-Japan IG Series 25Version 1, Jun. 2021 1.00 Morgan Stanley Buy USD 1,025 (14,567)

367,000 Government of Brazil, senior bond,4.25%, 01/07/25, Jun. 2021 1.00 JPMorgan Chase Bank Sell USD (114,426) 50,696

1,182,109 Government of Russia, seniorbond, Reg S, 7.50%, 03/31/30,Dec. 2020 1.00 JPMorgan Chase Bank Sell USD (36,020) 102,573

476,000 Government of Russia, seniorbond, Reg S, 7.50%, 03/31/30,Jun. 2021 1.00 JPMorgan Chase Bank Sell USD (12,368) 21,707

1,773,907 Korea Treasury Bond, senior note,7.125%, 04/16/19, Dec. 2021 1.00 JPMorgan Chase Bank Sell USD 47,997 100,593

(176,412) 15,212








%


Tradingcurrency

MarketvalueUSD


USD

188,000 Government of Mexico, seniorbond, 5.95%, 03/19/19, Dec.2021 1.00 JPMorgan Chase Bank Buy USD 4,710 (195)

190,000 Government of South Africa,5.50%, 03/09/20, Dec. 2021 1.00 JPMorgan Chase Bank Buy USD 9,906 (3,129)

190,000 Korea Treasury Bond, senior note,7.125%, 04/16/19, Dec. 2021 1.00 JPMorgan Chase Bank Buy USD (5,141) (400)

80,000 Government of South Africa,5.50%, 03/09/20, Dec. 2021 1.00 Morgan Stanley Buy USD 4,170 (1,071)

13,645 (4,795)



%


Tradingcurrency

MarketvalueUSD


USD

180,000 Boparan Finance PLC, senior note,Reg S, 4.375%, 07/15/21, Dec.2021 5.00 Bank of America Buy EUR 163 1,684

60,000 AK Steel Corp., senior note,7.625%, 05/15/20, Dec. 2021 5.00 JPMorgan Chase Bank Buy USD (2,103) 337

325,000 American Axle &Manufacturing Inc., senior bond,6.625%, 10/15/22, Dec. 2021 5.00 JPMorgan Chase Bank Buy USD (29,449) 158

595,000 Caterpillar Financial ServicesCorp., senior note, 2.25%,12/01/19, Dec. 2021 1.00 JPMorgan Chase Bank Buy USD (7,747) 973

225,000 Dynegy Inc., senior note, 6.75%,11/01/19, Dec. 2021 5.00 JPMorgan Chase Bank Buy USD 4,765 (289)

128,000 Ford Motor Co., senior bond,6.50%, 08/01/18, Dec. 2021 5.00 JPMorgan Chase Bank Buy USD (21,213) 1,113

128,000 Ford Motor Credit Co. LLC, seniornote, 5.00%, 05/15/18, Dec.2021 5.00 JPMorgan Chase Bank Buy USD (21,337) 1,325

375,000 GATX Corp., 6.00%, 02/15/18,Dec. 2021 1.00 JPMorgan Chase Bank Buy USD 7,917 1,613

211,000 Government of Mexico, seniorbond, 5.95%, 03/19/19, Dec.2021 1.00 JPMorgan Chase Bank Buy USD 5,287 (219)

300,000 Government of South Africa,5.50%, 03/09/20, Dec. 2021 1.00 JPMorgan Chase Bank Buy USD 15,639 (2,775)

500,000 Government of Turkey, seniorbond, 11.875%, 01/15/30, Dec.2021 1.00 JPMorgan Chase Bank Buy USD 39,005 (5,442)

62,000 Hertz Corp., senior note, 5.875%,10/15/20, Dec. 2019 5.00 JPMorgan Chase Bank Buy USD (2,749) 365

14,871,000 Itochu Corp., senior note, 2.17%,10/20/16, Dec. 2021 1.00 JPMorgan Chase Bank Buy JPY (4,163) 1

6,593,000 JFE Holdings Inc., senior note,1.326%, 06/08/21, Dec. 2021 1.00 JPMorgan Chase Bank Buy JPY (1,440) (50)

125,000 John Deere Capital Corp., seniornote, 2.80%, 03/04/21, Dec.2021 1.00 JPMorgan Chase Bank Buy USD (2,192) 178

9,912,000 Kobe Steel Ltd., senior note,2.14%, 12/25/18, Dec. 2021 1.00 JPMorgan Chase Bank Buy JPY (829) (1)

14,674,000 Marubeni Corp., senior note,1.50%, 06/14/21, Dec. 2021 1.00 JPMorgan Chase Bank Buy JPY (3,394) 78

9,290,000 Mitsui OSK Lines Ltd., seniornote, 1.139%, 07/12/22, Dec.2021 1.00 JPMorgan Chase Bank Buy JPY 688 (110)

370,000 Pizzaexpress Financing 1 PLC,secured note, second lien, Reg S,8.625%, 08/01/22, Dec. 2021 5.00 JPMorgan Chase Bank Buy EUR 9,204 3,263

350,000 Potash Corp. ofSaskatchewan Inc., senior note,6.50%, 05/15/19, Dec. 2021 1.00 JPMorgan Chase Bank Buy USD 3,365 (621)

175,000 Rallye SA, senior note, Reg S,7.625%, 11/04/16, Dec. 2019 5.00 JPMorgan Chase Bank Buy EUR 4,818 (643)

3,330,000 Sharp Corp., senior note, 1.604%,09/13/19, Dec. 2018 1.00 JPMorgan Chase Bank Buy JPY 297 (230)






Franklin K2 Long Short Credit Fund (continued)Nominal Description Interest

paid/received%


Tradingcurrency

MarketvalueUSD


USD

65,000 Tesco PLC, senior bond, 6.00%,12/14/29, Dec. 2021 1.00 JPMorgan Chase Bank Buy EUR 3,152 82

100,000 United Rentals NorthAmerica Inc., senior bond,6.125%, 06/15/23, Dec. 2021 5.00 JPMorgan Chase Bank Buy USD (14,775) 505

1,750,000 CDX.NA.HY.27 Version 1, Dec.2021 5.00 Morgan Stanley Buy USD (110,910) (505)

230,000 Transocean Inc., senior bond,7.375%, 04/15/18, Dec. 2021 1.00 Morgan Stanley Buy USD 40,522 2,552

500,000 Government of Russia, seniorbond, Reg S, 7.50%, 03/31/30,Dec. 2021 1.00 JPMorgan Chase Bank Sell USD (18,302) 7,103

(105,781) 10,445

Franklin Real Return Fund


%


Tradingcurrency

MarketvalueUSD


USD

169,200 LCDX.NA.19, Dec. 2017 2.50 Barclays Bank Sell USD 2,354 (32)192,000 LCDX.NA.20, Jun. 2018 2.50 Credit Suisse International Sell USD 3,092 (2,427)

5,446 (2,459)



%


Tradingcurrency

MarketvalueUSD


USD

30,000,000 CDX.NA.HY.27, Dec. 2021 5.00 Deutsche Bank Buy USD (1,857,648) (865,848)925,000 The Royal Bank of Scotland PLC,

sub. bond, 4.35%, 01/23/17,Jun. 2021 1.00 JPMorgan Chase Bank Buy EUR 70,339 (43,690)

9,964,000 LCDX.NA.19, Dec. 2017 2.50 Barclays Bank Sell USD 138,609 117,6144,800,000 LCDX.NA.20, Jun. 2018 2.50 Barclays Bank Sell USD 77,312 (102,688)8,725,000 MCDX.NA.27, Dec. 2021 1.00 Citibank Sell USD 131,183 40,359

960,000 LCDX.NA.20, Jun. 2018 2.50 Credit Suisse International Sell USD 15,462 (9,738)66,640,000 LCDX.NA.21, Dec. 2018 2.50 Credit Suisse International Sell USD 1,226,503 (1,845,797)

9,870,000 LCDX.NA.19, Dec. 2017 2.50 Deutsche Bank Sell USD 137,302 116,504

(60,938) (2,593,284)



%


Tradingcurrency

MarketvalueUSD


USD

7,000,000 Hospitality Properties Trust, seniornote, 5.125%, 02/15/15, Mar.2017 5.00 Bank of America Buy USD (71,893) 857,564

3,500,000 Reynolds Group Holdings Inc.,senior note, 8.125%, 06/15/17,Jun. 2017 5.00 Barclays Bank Buy USD (78,632) 152,374

1,000,000 Beazer Homes USA Inc., seniornote, 9.125%, 05/15/19, Jun.2019 5.00 Citibank Buy USD (73,946) (22,072)

6,000,000 Owens-Illinois Inc., senior note,7.80%, 05/15/18, Jun. 2018 5.00 Citibank Buy USD (424,694) 204,327

3,000,000 Bank of America Corp., seniornote, 5.65%, 05/01/18, Sep.2017 1.00 Credit Suisse International Buy USD (15,947) (22,694)

5,000,000 Beazer Homes USA Inc., seniornote, 9.125%, 05/15/19, Jun.2019 5.00 Credit Suisse International Buy USD (369,731) (141,706)

800,000 Constellation Brands Inc., seniornote, A, 7.25%, 09/01/16, Jun.2017 5.00 Deutsche Bank Buy USD (18,581) 87,011

4,200,000 Toys R Us Inc., senior bond,7.375%, 10/15/18, Dec. 2018 5.00 Deutsche Bank Buy USD 168,000 (1,013,375)

4,800,000 Avon Products Inc., senior note,6.50%, 03/01/19, Mar. 2020 5.00 Goldman Sachs Buy USD (241,232) (837,107)






Franklin U.S. Low Duration Fund (continued)Nominal Description Interest

paid/received%


Tradingcurrency

MarketvalueUSD


USD

2,000,000 Beazer Homes USA Inc., seniornote, 9.125%, 05/15/19, Jun.2019 5.00 Goldman Sachs Buy USD (147,892) (48,025)

5,000,000 CSC Holdings LLC, senior bond,7.625%, 07/15/18, Mar. 2019 5.00 Goldman Sachs Buy USD (416,187) (191,809)

4,000,000 International Lease Finance Corp.,senior note, 8.25%, 12/15/20,Mar. 2017 5.00 Goldman Sachs Buy USD (40,894) 253,159

1,600,000 Olin Corp., senior bond, 5.50%,08/15/22, Jun. 2021 1.00 Goldman Sachs Buy USD 72,195 (54,227)

3,100,000 Toys R Us Inc., senior bond,7.375%, 10/15/18, Dec. 2018 5.00 Goldman Sachs Buy USD 124,000 (751,750)

4,000,000 Rite Aid Corp., senior bond,7.70%, 02/15/27, Dec. 2020 5.00 JPMorgan Chase Bank Buy USD (662,276) 78,260

3,500,000 The AES Corp., senior note, FRN,3.93067%, 06/01/19, Jun. 2021 5.00 JPMorgan Chase Bank Buy USD (426,800) (26,122)

1,650,000 iHeartCommunications Inc., seniorbond, 6.875%, 06/15/18, Jun.2018 5.00 Barclays Bank Sell USD (924,216) (552,966)

5,088,000 LCDX.NA.20, Jun. 2018 2.50 Barclays Bank Sell USD 81,951 (121,569)3,500,000 Tenet Healthcare Corp., senior

note, 6.875%, 11/15/31, Dec.2018 5.00 Barclays Bank Sell USD 98,053 (138,638)

1,600,000 Government of Mexico, seniorbond, 5.95%, 03/19/19, Jun.2020 1.00 Citibank Sell USD (6,696) 13,337

3,000,000 Bank of America Corp., seniornote, 5.65%, 05/01/18, Sep.2017 1.00 Credit Suisse International Sell USD 15,947 22,693

3,100,000 American Tower Corp., senior note,4.50%, 01/15/18, Mar. 2021 1.00 Goldman Sachs Sell USD (49,405) 4,105

3,500,000 Calpine Corp., senior note,5.375%, 01/15/23, Jun. 2021 5.00 JPMorgan Chase Bank Sell USD 286,076 81,457

300,000 Enterprise ProductsOperating LLC, senior note,5.20%, 09/01/20, Dec. 2019 1.00 Morgan Stanley Sell USD 830 2,314

(3,121,970) (2,165,459)



%


Tradingcurrency

MarketvalueUSD


USD

150,000 Rite Aid Corp., senior bond,7.70%, 02/15/27, Jun. 2021 5.00 Citibank Buy USD (26,393) (3,050)

500,000 Bank of America Corp., seniornote, 5.65%, 05/01/18, Sep.2017 1.00 Credit Suisse International Buy USD (2,658) (8,038)

500,000 Lennar Corp., senior note, 4.75%,12/15/17, Sep. 2019 5.00 Credit Suisse International Buy USD (53,419) 17,871

800,000 Constellation Brands Inc., seniornote, A, 7.25%, 09/01/16, Jun.2017 5.00 Deutsche Bank Buy USD (18,581) 87,011

1,000,000 Toys R Us Inc., senior bond,7.375%, 10/15/18, Dec. 2018 5.00 Deutsche Bank Buy USD 40,000 (241,500)

500,000 Avon Products Inc., senior note,6.50%, 03/01/19, Mar. 2020 5.00 Goldman Sachs Buy USD (25,128) (88,878)

500,000 Canadian Natural Resources Ltd.,senior note, 5.70%, 05/15/17,Jun. 2017 5.00 Goldman Sachs Buy USD (11,389) 14,714

500,000 CSC Holdings LLC, senior bond,7.625%, 07/15/18, Sep. 2018 5.00 Goldman Sachs Buy USD (35,392) (6,154)

500,000 CSC Holdings LLC, senior bond,7.625%, 07/15/18, Mar. 2019 5.00 Goldman Sachs Buy USD (41,619) (14,125)

500,000 International Lease Finance Corp.,senior note, 8.25%, 12/15/20,Mar. 2017 5.00 Goldman Sachs Buy USD (5,112) 31,645

300,000 Olin Corp., senior bond, 5.50%,08/15/22, Jun. 2021 1.00 Goldman Sachs Buy USD 13,537 (9,669)






Franklin U.S. Total Return Fund (continued)Nominal Description Interest

paid/received%


Tradingcurrency

MarketvalueUSD


USD

700,000 Springleaf Finance Corp., seniornote, J, 6.90%, 12/15/17, Jun.2020 5.00 Goldman Sachs Buy USD (27,082) 10,564

500,000 Tenet Healthcare Corp., seniornote, 6.875%, 11/15/31, Mar.2019 5.00 Goldman Sachs Buy USD (8,383) 44,113

200,000 Intesa Sanpaolo Spa, FRN,3.92%, 02/24/16, Jun. 2021 1.00 JPMorgan Chase Bank Buy EUR 16,618 (8,965)

200,000 Rite Aid Corp., senior bond,7.70%, 02/15/27, Dec. 2020 5.00 JPMorgan Chase Bank Buy USD (33,114) 3,913

550,000 The AES Corp., senior note, FRN,3.93067%, 06/01/19, Jun. 2021 5.00 JPMorgan Chase Bank Buy USD (67,069) (3,891)

25,000 The Royal Bank of Scotland PLC,sub. bond, 4.35%, 01/23/17,Jun. 2021 1.00 JPMorgan Chase Bank Buy EUR 1,901 (1,181)

150,000 iHeartCommunications Inc., seniorbond, 6.875%, 06/15/18, Jun.2018 5.00 Barclays Bank Sell USD (84,020) (50,270)

1,598,000 LCDX.NA.19, Dec. 2017 2.50 Barclays Bank Sell USD 22,230 (302)200,000 Tenet Healthcare Corp., senior

note, 6.875%, 11/15/31, Dec.2018 5.00 Barclays Bank Sell USD 5,603 (7,922)

300,000 Government of Mexico, seniorbond, 5.95%, 03/19/19, Jun.2020 1.00 Citibank Sell USD (1,255) 2,501

195,000 MCDX.NA.27, Dec. 2021 1.00 Citibank Sell USD 2,932 902500,000 Bank of America Corp., senior

note, 5.65%, 05/01/18, Sep.2017 1.00 Credit Suisse International Sell USD 2,658 8,038

750,000 CDX.NA.IG.24, Jun. 2025 1.00 Deutsche Bank Sell USD (5,881) (4,080)500,000 Freeport-McMoRan Inc., senior

note, 3.55%, 03/01/22, Mar.2023 1.00 Deutsche Bank Sell USD (83,803) (50,599)

550,000 Calpine Corp., senior note,5.375%, 01/15/23, Jun. 2021 5.00 JPMorgan Chase Bank Sell USD 44,954 12,864

(379,865) (264,488)

Note 12 — Open positions on option contractsAs at December 31, 2016, the Company had entered into the following outstanding contracts:


Purchase/Saleposition


Number ofcontracts

purchased/(sold)

CommitmentUSD

MarketvalueUSD


USD

Currency OptionSale BRL/USD, Call Option, Strike Price

3325, Jan. 2017 Votora Corretora BRL (50) 2,553,999 (1) 119,819

(1) 119,819




Number ofcontracts

purchased/(sold)

CommitmentEUR

MarketvalueEUR


EUR

Index OptionPurchase CBOE Volatility Index, Call Option, Strike

Price 22, Jan. 2017 JPMorgan Chase Bank USD 61 81,395 1,855 (8,429)Purchase CBOE Volatility Index, Call Option, Strike

Price 21, Feb. 2017 JPMorgan Chase Bank USD 81 108,082 8,083 (4,419)Purchase CBOE Volatility Index, Call Option, Strike

Price 21, Mar. 2017 JPMorgan Chase Bank USD 82 109,416 13,249 (351)Purchase Russell 2000 Index, Put Option, Strike

Price 1340, Feb. 2017 JPMorgan Chase Bank USD 23 2,966,545 66,123 2,603Purchase S&P 500 Index, Put Option, Strike Price

1660, Jan. 2017 JPMorgan Chase Bank USD 11 2,340,537 - (3,522)Purchase S&P 500 Index, Put Option, Strike Price

1750, Feb. 2017 JPMorgan Chase Bank USD 14 2,978,865 1,330 (3,032)






Franklin Diversified Balanced Fund (continued)Purchase/Saleposition


Number ofcontracts

purchased/(sold)

CommitmentEUR

MarketvalueEUR


EUR

Purchase S&P 500 Index, Put Option, Strike Price1780, Mar. 2017 JPMorgan Chase Bank USD 16 3,404,418 4,942 (1,093)

Sale Russell 2000 Index, Call Option, StrikePrice 1440, Feb. 2017 JPMorgan Chase Bank USD (23) 2,966,545 (12,569) 13,794

Sale Russell 2000 Index, Put Option, StrikePrice 1190, Feb. 2017 JPMorgan Chase Bank USD (23) 2,966,545 (11,148) 746

Sale S&P 500 Index, Put Option, Strike Price1980, Jan. 2017 JPMorgan Chase Bank USD (11) 2,340,537 (993) 22,143

Sale S&P 500 Index, Put Option, Strike Price2060, Feb. 2017 JPMorgan Chase Bank USD (14) 2,978,865 (10,910) 16,754

Sale S&P 500 Index, Put Option, Strike Price2110, Mar. 2017 JPMorgan Chase Bank USD (16) 3,404,418 (36,191) (2,690)

23,771 32,504




Number ofcontracts

purchased/(sold)

CommitmentEUR

MarketvalueEUR


EUR







1750, Feb. 2017 JPMorgan Chase Bank USD 19 4,042,746 1,805 (4,115)Purchase S&P 500 Index, Put Option, Strike Price

1780, Mar. 2017 JPMorgan Chase Bank USD 22 4,681,074 6,795 (1,503)Sale Russell 2000 Index, Call Option, Strike

Price 1440, Feb. 2017 JPMorgan Chase Bank USD (33) 4,256,348 (18,034) 19,792Sale Russell 2000 Index, Put Option, Strike

Price 1190, Feb. 2017 JPMorgan Chase Bank USD (33) 4,256,348 (15,995) 1,071Sale S&P 500 Index, Put Option, Strike Price

1980, Jan. 2017 JPMorgan Chase Bank USD (14) 2,978,865 (1,264) 28,182Sale S&P 500 Index, Put Option, Strike Price

2060, Feb. 2017 JPMorgan Chase Bank USD (19) 4,042,746 (14,807) 22,736Sale S&P 500 Index, Put Option, Strike Price

2110, Mar. 2017 JPMorgan Chase Bank USD (22) 4,681,074 (49,762) (3,699)

35,570 43,980




Number ofcontracts

purchased/(sold)

CommitmentEUR

MarketvalueEUR


EUR


Price 22, Jan. 2017 JPMorgan Chase Bank USD 30 40,030 912 (4,146)Purchase CBOE Volatility Index, Call Option, Strike





1750, Feb. 2017 JPMorgan Chase Bank USD 7 1,489,433 665 (1,516)Purchase S&P 500 Index, Put Option, Strike Price

1780, Mar. 2017 JPMorgan Chase Bank USD 8 1,702,209 2,471 (547)Sale Russell 2000 Index, Call Option, Strike


Price 1190, Feb. 2017 JPMorgan Chase Bank USD (11) 1,418,783 (5,332) 357



Note 12 — Open positions on option contracts (continued)



Franklin Diversified Dynamic Fund (continued)Purchase/Saleposition


Number ofcontracts

purchased/(sold)

CommitmentEUR

MarketvalueEUR


EUR

Sale S&P 500 Index, Put Option, Strike Price1980, Jan. 2017 JPMorgan Chase Bank USD (5) 1,063,880 (451) 10,065

Sale S&P 500 Index, Put Option, Strike Price2060, Feb. 2017 JPMorgan Chase Bank USD (7) 1,489,433 (5,455) 8,377

Sale S&P 500 Index, Put Option, Strike Price2110, Mar. 2017 JPMorgan Chase Bank USD (8) 1,702,209 (18,095) (1,345)

10,682 15,188




Number ofcontracts

purchased/(sold)

CommitmentUSD

MarketvalueUSD


USD

Future OptionPurchase Euro-Bund Future, Call Option, Strike

Price 163, Feb. 2017 JPMorgan Chase Bank EUR 21 362,709,108 48,170 5,259

SwaptionPurchase CDX.NA.HY.27, Strike Price 103,

Jan. 2017 Citibank USD 8,000,000 8,000,000 5,576 (92,824)Purchase CDX.NA.HY.27, Strike Price 103,

Mar. 2017 Citibank USD 14,000,000 14,000,000 62,370 (52,430)Purchase Receiving floating 3-month USD LIBOR /

Paying fixed rate 2.60%, Feb. 2017 Citibank USD 13,000,000 13,000,000 84,266 (93,629)Purchase Receiving floating 3-month USD BBA

LIBOR / Paying fixed rate 2.23%,Mar. 2017 JPMorgan Chase Bank USD 19,000,000 19,000,000 69,920 (69,383)

Purchase Receiving floating 3-month USD LIBOR /Paying fixed rate 2.23%, Mar. 2017 JPMorgan Chase Bank USD 10,000,000 10,000,000 236,660 67,646

Sale CDX.NA.HY.27, Strike Price 100,Jan. 2017 Citibank USD (8,000,000) 8,000,000 (3,120) 36,880

Sale Receiving floating 3-month USD LIBOR /Paying fixed rate 2.60%, Feb. 2017 JPMorgan Chase Bank USD (10,000,000) 10,000,000 (49,040) (8,664)

406,632 (212,404)

454,802 (207,145)




Number ofcontracts

purchased/(sold)

CommitmentEUR

MarketvalueEUR


EUR

Equity OptionSale Activia Properties Inc., Call Option,

Strike Price 548100, Jan. 2017 Bank of America JPY (12) 53,757 (811) (617)Sale Aena SA, Call Option, Strike Price

138.915, Jan. 2017 Bank of America EUR (1,112) 144,171 (36) 426Sale Alexandria Real Estate Equities Inc., Call

Option, Strike Price 113.736, Jan. 2017 Bank of America USD (620) 65,482 (422) (415)Sale Apa Group, Call Option, Strike Price

8.666, Jan. 2017 Bank of America AUD (22,153) 130,200 (793) (553)Sale Apartment Investment & Management

Co., A, Call Option, Strike Price46.7723, Jan. 2017 Bank of America USD (1,815) 78,399 (394) (317)

Sale Boston Properties Inc., Call Option,Strike Price 132.6255, Jan. 2017 Bank of America USD (425) 50,805 (136) (124)

Sale City Developments Ltd., Call Option,Strike Price 8.7675, Jan. 2017 Bank of America SGD (6,350) 34,512 (10) 27

Sale Coresite Realty Corp., Call Option, StrikePrice 83.1495, Jan. 2017 Bank of America USD (880) 66,381 (564) (482)

Sale Dong Energy AS, Call Option, StrikePrice 257.67,Jan. 2017 Bank of America DKK (4,104) 147,750 (6,359) (5,403)

Sale DTE Energy Co., Call Option, Strike Price102.7466, Jan. 2017 Bank of America USD (1,815) 169,926 (297) (260)

Sale Duke Realty Corp., Call Option, StrikePrice 27.468, Jan. 2017 Bank of America USD (2,200) 55,533 (42) (19)

Sale Ferrovial SA, Call Option, Strike Price17.66625, Jan. 2017 Bank of America EUR (7,697) 130,811 (179) 43

Sale First Industrial Realty Trust Inc., CallOption, Strike Price 29.0955, Jan. 2017 Bank of America USD (2,485) 66,246 (923) (864)






Franklin Global Multi-Asset Income Fund (continued)Purchase/Saleposition


Number ofcontracts

purchased/(sold)

CommitmentEUR

MarketvalueEUR


EUR

Sale Flughafen Zuerich AG, Call Option, StrikePrice 186.9, Jan. 2017 Bank of America CHF (850) 149,842 (2,077) (1,946)

Sale Great Portland Estates PLC, Call Option,Strike Price 6.8565, Jan. 2017 Bank of America GBP (3,100) 24,262 (147) (63)

Sale Guangdong Investment Ltd., Call Option,Strike Price 10.815, Jan. 2017 Bank of America HKD (102,600) 128,764 (205) 947

Sale Hispania Activos Inmobiliarios SOCIMISA, Call Option, Strike Price 11.9805,Jan. 2017 Bank of America EUR (2,028) 22,703 (4) 123

Sale Hulic REIT Inc., Call Option, Strike Price194274.80, Jan. 2017 Bank of America JPY (30) 47,830 (1,065) (749)

Sale Kimco Realty Corp., Call Option, StrikePrice 27.006, Jan. 2017 Bank of America USD (1,515) 36,226 (5) 7

Sale Klepierre, Call Option, Strike Price38.65575, Jan. 2017 Bank of America EUR (810) 30,249 (126) (25)

Sale Land Securities Group PLC, Call Option,Strike Price 10.6365, Jan. 2017 Bank of America GBP (3,060) 38,189 (661) (447)

Sale New World Development Co. Ltd., CallOption, Strike Price 8.6415, Jan. 2017 Bank of America HKD (46,500) 46,732 (137) 192

Sale NextEra Energy Inc., Call Option, StrikePrice 122.0415, Jan. 2017 Bank of America USD (1,378) 156,449 (383) (351)

Sale Regency Centers Corp., Call Option,Strike Price 71.526, Jan. 2017 Bank of America USD (865) 56,683 (132) (121)

Sale Scentre Group, Call Option, Strike Price4.683, Jan. 2017 Bank of America AUD (15,602) 49,647 (412) (337)

Sale Severn Trent PLC, Call Option, StrikePrice 23.1945, Jan. 2017 Bank of America GBP (4,579) 119,117 (629) (136)

Sale Sun Hung Kai Properties Ltd., CallOption, Strike Price 107.1, Jan. 2017 Bank of America HKD (1,500) 18,016 - 65

Sale TransCanada Corp., Call Option, StrikePrice 47.3445, Jan. 2017 Bank of America USD (4,180) 179,364 (140) (79)

Sale Transurban Group, Call Option, StrikePrice 10.6911, Jan. 2017 Bank of America AUD (16,996) 120,289 (671) (518)

Sale UDR Inc., Call Option, Strike Price35.8365, Jan. 2017 Bank of America USD (2,060) 71,421 (1,857) (1,831)

Sale Veolia Environnement SA, Call Option,Strike Price 16.62675, Jan. 2017 Bank of America EUR (6,983) 112,950 (385) 281

Sale Vicinity Centres, Call Option, Strike Price3.009, Jan. 2017 Bank of America AUD (18,397) 37,724 (491) (455)

(20,493) (14,001)







1750, Feb. 2017 JPMorgan Chase Bank USD 18 3,829,970 1,711 (3,899)Purchase S&P 500 Index, Put Option, Strike Price

1780, Mar. 2017 JPMorgan Chase Bank USD 21 4,468,298 6,486 (1,435)Sale Russell 2000 Index, Call Option, Strike


Price 1190, Feb. 2017 JPMorgan Chase Bank USD (31) 3,998,387 (15,026) 1,006Sale S&P 500 Index, Put Option, Strike Price

2060, Feb. 2017 JPMorgan Chase Bank USD (18) 3,829,970 (14,028) 21,539Sale S&P 500 Index, Put Option, Strike Price

1980, Jan. 2017 JPMorgan Chase Bank USD (14) 2,978,865 (1,264) 28,182Sale S&P 500 Index, Put Option, Strike Price

2110, Mar. 2017 JPMorgan Chase Bank USD (21) 4,468,298 (47,501) (3,531)

33,221 42,724

12,728 28,723









Number ofcontracts

purchased/(sold)

CommitmentUSD

MarketvalueUSD


USD

Currency OptionPurchase EUR/TRY, Put Option, Strike Price 3.4,

Jan. 2017 Deutsche Bank EUR 3,276,000 3,157,411 177 (69,337)Purchase USD/TWD, Call Option, Strike Price

31.78, Jan. 2017 Deutsche Bank USD 3,090,000 3,025,781 63,283 5,963

63,460 (63,374)

Equity OptionPurchase Allergan PLC, Call Option, Strike Price

220, May 2017 JPMorgan Chase Bank USD 14 269,696 17,640 4,513Purchase Allergan PLC, Call Option, Strike Price

225, Jan. 2017 JPMorgan Chase Bank USD 51 982,464 8,925 (29,651)Purchase Allergan PLC, Call Option, Strike Price

250, May 2017 JPMorgan Chase Bank USD 42 809,088 17,640 (46,494)Purchase Charter Communications Inc., A, Call

Option, Strike Price 275, Mar. 2017 JPMorgan Chase Bank USD 119 3,426,248 292,144 110,162Purchase Charter Communications Inc., A, Call

Option, Strike Price 300, Jan. 2018 JPMorgan Chase Bank USD 56 1,612,352 186,480 105,196Purchase DISH Network Corp., A, Call Option,

Strike Price 70, Jun. 2017 JPMorgan Chase Bank USD 155 894,195 32,163 (7,854)Purchase DISH Network Corp., A, Call Option,

Strike Price 75, Jun. 2017 JPMorgan Chase Bank USD 155 894,195 19,374 (5,109)Purchase Freeport-McMoRan Inc., B, Call Option,

Strike Price 19, Feb. 2017 JPMorgan Chase Bank USD 1,094 1,637,718 6,564 (41,617)Purchase iShares iBoxx High Yield Corporate Bond

ETF, Put Option, Strike Price 84,Jan. 2017 JPMorgan Chase Bank USD 250 2,141,250 2,250 (27,003)

Purchase iShares iBoxx High Yield Corporate BondETF, Put Option, Strike Price 85,Mar. 2017 JPMorgan Chase Bank USD 416 3,563,040 48,256 (21,842)

Purchase iShares Russell 2000 ETF, Put Option,Strike Price 130, Feb. 2017 JPMorgan Chase Bank USD 110 1,447,710 23,210 (2,768)

Purchase Johnson Controls International PLC, CallOption, Strike Price 46, Jan. 2017 JPMorgan Chase Bank USD 141 580,779 1,127 (22,830)

Purchase Liberty Global PLC, Put Option, StrikePrice 30, Apr. 2017 JPMorgan Chase Bank USD 345 1,069,500 66,413 (470)

Purchase Reynolds American Inc., Call Option,Strike Price 55, Jan. 2017 JPMorgan Chase Bank USD 100 60,462 18,500 (1,944)

Purchase The SPDR S&P Oil & Gas Exploration &Production ETF, Put Option, Strike Price36, Jan. 2017 JPMorgan Chase Bank USD 138 571,596 1,104 (22,146)

Purchase The SPDR S&P Oil & Gas Exploration &Production ETF, Put Option, Strike Price37, Jan. 2017 JPMorgan Chase Bank USD 285 1,180,470 3,990 (45,626)

Purchase The SPDR S&P Oil & Gas Exploration &Production ETF, Put Option, Strike Price39, Mar. 2017 JPMorgan Chase Bank USD 371 1,536,682 54,908 662

Purchase The Williams Cos. Inc., Call Option,Strike Price 32, Feb. 2017 JPMorgan Chase Bank USD 290 890,300 40,020 16,518

Purchase Actelion Ltd., Put Option, Strike Price180, Jan. 2017 Morgan Stanley CHF 23 472,015 7,364 (13,628)

Purchase Actelion Ltd., Put Option, Strike Price200, Jan. 2017 Morgan Stanley CHF 22 451,493 15,426 (11,098)

Purchase Allscripts Healthcare Solutions Inc., CallOption, Strike Price 12, Mar. 2017 Morgan Stanley USD 57 58,197 998 (284)

Purchase Altra Industrial Motion Corp., CallOption, Strike Price 40, Jan. 2017 Morgan Stanley USD 32 118,080 800 (588)

Purchase CalAtlantic Group Inc., Call Option,Strike Price 35, Mar. 2017 Morgan Stanley USD 21 71,904 3,308 (452)

Purchase Cemex SAB de CV, Call Option, StrikePrice 9, Jan. 2017 Morgan Stanley USD 300 240,900 900 (17,752)

Purchase Compagnie Financiere Richemont SA,Call Option, Strike Price 64, Mar. 2017 Morgan Stanley CHF 122 808,022 61,221 39,551

Purchase Cypress Semiconductor Corp., CallOption, Strike Price 12, Jan. 2017 Morgan Stanley USD 88 98,824 1,760 (1,851)

Purchase DISH Network Corp., A, Call Option,Strike Price 62.5, Jan. 2017 Morgan Stanley USD 86 496,134 4,988 (17,647)

Purchase Financial Select Sector SPDR ETF, PutOption, Strike Price 23, Jan. 2017 Morgan Stanley USD 114 265,050 3,306 525

Purchase Frontier Communications Corp., CallOption, Strike Price 3.5, Feb. 2017 Morgan Stanley USD 373 126,074 4,849 (1,741)






Franklin K2 Alternative Strategies Fund (continued)Purchase/Saleposition


Number ofcontracts

purchased/(sold)

CommitmentUSD

MarketvalueUSD


USD

Purchase Frontier Communications Corp., CallOption, Strike Price 4.5, May 2017 Morgan Stanley USD 255 86,190 1,275 (4,639)

Purchase General Cable Corp., Put Option, StrikePrice 16, Feb. 2017 Morgan Stanley USD 27 51,435 1,215 (187)

Purchase Green Plains Inc., Call Option, StrikePrice 27, Jan. 2017 Morgan Stanley USD 88 245,080 12,980 (7,500)

Purchase Intercept Pharmaceuticals, Inc., CallOption, Strike Price 130, Mar. 2017 Morgan Stanley USD 12 130,380 5,040 (1,467)

Purchase iShares Dow Jones US Healthcare ETF,Put Option, Strike Price 143.64,Mar. 2017 Morgan Stanley USD 4,924,841 709,817,339 153,633 (6,483)

Purchase iShares Nasdaq Biotechnology ETF, PutOption, Strike Price 267.3204,Mar. 2017 Morgan Stanley USD 5,626,827 1,493,247,376 319,302 10,934

Purchase Scorpio Tankers Inc., Call Option, StrikePrice 5, Apr. 2017 Morgan Stanley USD 69 31,257 2,243 470

Purchase Scorpio Tankers Inc., Put Option, StrikePrice 2.5, Apr. 2017 Morgan Stanley USD 163 73,839 1,630 (2,244)

Purchase Spirit Realty Capital Inc., Put Option,Strike Price 10, Jan. 2017 Morgan Stanley USD 172 185,588 6,880 2,888

Purchase Teck Resources Ltd., B, Call Option,Strike Price 26, Feb. 2017 Morgan Stanley USD 57 143,640 1,368 (10,048)

Purchase Telecom Italia SpA, Call Option, StrikePrice 0.76, Jun. 2018 Morgan Stanley EUR 530 397,895 96,573 18,841

Purchase Telecom Italia SpA, Call Option, StrikePrice 0.9, Dec. 2017 Morgan Stanley EUR 1,065 799,543 104,708 (3,417)

Purchase Telecom Italia SpA, Put Option, StrikePrice 0.66, Jan. 2017 Morgan Stanley EUR 3,278 2,460,941 3,451 (129,618)

Purchase Trinity Industries Inc., Call Option, StrikePrice 35, Jan. 2017 Morgan Stanley USD 57 153,672 228 (572)

Purchase Vivendi SA, Call Option, Strike Price 22,Sep. 2017 Morgan Stanley EUR 199 378,050 6,075 (6,945)

Purchase Vodafone Group PLC, Call Option, StrikePrice 40, Jan. 2017 Morgan Stanley USD 73 178,339 292 (5,728)

Purchase Vodafone Group PLC, Call Option, StrikePrice 40, Jan. 2018 Morgan Stanley USD 33 80,619 165 (4,719)

Purchase WPX Energy Inc., Put Option, StrikePrice 9, Feb. 2017 Morgan Stanley USD 57 83,049 570 (1,199)

Sale iShares iBoxx High Yield Corporate BondETF, Put Option, Strike Price 81,Jan. 2017 JPMorgan Chase Bank USD (250) 2,141,250 (1,000) 11,647

Sale iShares iBoxx High Yield Corporate BondETF, Put Option, Strike Price 82,Mar. 2017 JPMorgan Chase Bank USD (416) 3,563,040 (19,552) 9,456

Sale iShares Russell 2000 ETF, Put Option,Strike Price 120, Feb. 2017 JPMorgan Chase Bank USD (110) 1,447,710 (7,260) 1,306

Sale The SPDR S&P Oil & Gas Exploration &Production ETF, Put Option, Strike Price32, Jan. 2017 JPMorgan Chase Bank USD (138) 571,596 (138) 7,438

Sale The SPDR S&P Oil & Gas Exploration &Production ETF, Put Option, Strike Price34, Jan. 2017 JPMorgan Chase Bank USD (285) 1,180,470 (855) 21,268

Sale The SPDR S&P Oil & Gas Exploration &Production ETF, Put Option, Strike Price35, Mar. 2017 JPMorgan Chase Bank USD (371) 1,536,682 (20,034) (256)

Sale Actelion Ltd., Call Option, Strike Price240, Feb. 2017 Morgan Stanley CHF (23) 472,015 (21,434) (7,771)

Sale Actelion Ltd., Call Option, Strike Price250, Feb. 2017 Morgan Stanley CHF (22) 391,998 (13,460) 294

Sale Altra Industrial Motion Corp., Put Option,Strike Price 35, Jan. 2017 Morgan Stanley USD (32) 118,080 (1,600) 28

Sale Bristol-Myers Squibb Co., Call Option,Strike Price 62.5, Feb. 2017 Morgan Stanley USD (44) 247,984 (3,212) 471

Sale CalAtlantic Group Inc., Put Option,Strike Price 31, Mar. 2017 Morgan Stanley USD (21) 71,904 (1,733) 1,280

Sale Cemex SAB de CV, Put Option, StrikePrice 8, Jan. 2017 Morgan Stanley USD (300) 240,900 (8,400) 10,498

Sale CenturyLink Inc., Call Option, StrikePrice 26, Feb. 2017 Morgan Stanley USD (79) 191,259 (2,054) 253








Number ofcontracts

purchased/(sold)

CommitmentUSD

MarketvalueUSD


USD

Sale DISH Network Corp., A, Put Option,Strike Price 52.5, Jan. 2017 Morgan Stanley USD (86) 496,134 (3,010) 14,585

Sale Green Plains Inc., Put Option, StrikePrice 25, Jan. 2017 Morgan Stanley USD (88) 245,080 (2,200) 16,793

Sale Intercept Pharmaceuticals, Inc., PutOption, Strike Price 100, Mar. 2017 Morgan Stanley USD (12) 130,380 (7,920) (1,390)

Sale iShares Dow Jones US Healthcare ETF,Call Option, Strike Price 143.64,Mar. 2017 Morgan Stanley USD (4,924,841) 709,817,339 (163,752) (3,637)

Sale iShares Nasdaq Biotechnology ETF, CallOption, Strike Price 267.3204,Mar. 2017 Morgan Stanley USD (5,626,827) 1,493,247,376 (283,755) 24,613

Sale Johnson & Johnson, Call Option, StrikePrice 120, Feb. 2017 Morgan Stanley USD (19) 213,712 (1,520) 203

Sale JPMorgan Chase & Co., Call Option,Strike Price 92.5, Feb. 2017 Morgan Stanley USD (19) 163,951 (1,102) 488

Sale Ship Finance International Ltd., CallOption, Strike Price 15, Jan. 2017 Morgan Stanley USD (74) 109,890 (1,850) 4,839

Sale Teck Resources Ltd., B, Put Option,Strike Price 21, Feb. 2017 Morgan Stanley USD (57) 143,640 (12,198) (3,242)

Sale Telecom Italia SpA, Call Option, StrikePrice 1.2, Dec. 2017 Morgan Stanley EUR (1,065) 23,414 (28,587) (4,488)

Sale Vonovia SE, Put Option, Strike Price 32,Mar. 2017 Morgan Stanley EUR (76) 245,097 (14,320) (4,133)

Sale Vonovia SE, Put Option, Strike Price 33,Mar. 2017 Morgan Stanley EUR (76) 245,097 (20,161) (6,487)

Sale Wells Fargo & Co., Call Option, StrikePrice 60, Feb. 2017 Morgan Stanley USD (25) 129,650 (950) 445

1,021,199 (120,400)

Index OptionPurchase S&P 500 Index, Put Option, Strike Price

2160, Jan. 2017 Deutsche Bank USD 3 671,649 2,190 (92)Purchase S&P 500 Index, Put Option, Strike Price

2200, Feb. 2017 JPMorgan Chase Bank USD 79 17,686,757 225,940 40,352Purchase S&P 500 Index, Put Option, Strike Price

2225, Jan. 2017 JPMorgan Chase Bank USD 21 4,701,543 39,900 6,276Purchase CAC 40 Index, Put Option, Strike Price

4250, Jan. 2017 Morgan Stanley EUR 44 2,251,094 658 (33,391)Purchase CAC 40 Index, Put Option, Strike Price

4700, Feb. 2017 Morgan Stanley EUR 73 3,734,769 50,117 (7,406)Purchase Dax Index, Put Option, Strike Price

11000, Feb. 2017 Morgan Stanley EUR 40 2,416,074 27,895 (19,375)Purchase Dax Index, Put Option, Strike Price

11200, Feb. 2017 Morgan Stanley EUR 52 3,140,896 49,675 106Purchase Euro STOXX 50 Index, Put Option, Strike

Price 3050, Feb. 2017 Morgan Stanley EUR 156 5,401,165 38,754 (40,707)Purchase Euro STOXX Utilities Index, Put Option,

Strike Price 230, Feb. 2017 Morgan Stanley EUR 152 1,955,278 13,600 (30,536)Purchase S&P 500 Index, Put Option, Strike Price

2125, Jan. 2017 Morgan Stanley USD 312 69,851,496 122,616 (68,303)Purchase S&P 500 Index, Put Option, Strike Price

2150, Jan. 2017 Morgan Stanley USD 154 34,477,982 168,630 45,572Purchase STOXX Europe 600 Industrial Goods &

Services Index, Put Option, Strike Price440, Feb. 2017 Morgan Stanley EUR 144 3,522,765 30,316 (19,606)

Sale S&P 500 Index, Put Option, Strike Price2100, Feb. 2017 JPMorgan Chase Bank USD (79) 17,686,757 (97,170) (16,240)

Sale S&P 500 Index, Put Option, Strike Price2175, Jan. 2017 JPMorgan Chase Bank USD (21) 4,701,543 (17,178) (2,594)

Sale CAC 40 Index, Put Option, Strike Price3900, Jan. 2017 Morgan Stanley EUR (44) 2,251,094 (111) 11,102

Sale CAC 40 Index, Put Option, Strike Price4300, Feb. 2017 Morgan Stanley EUR (73) 956,259 (11,388) 686

Sale Dax Index, Put Option, Strike Price10000, Feb. 2017 Morgan Stanley EUR (40) 2,416,074 (6,358) 4,663

Sale Dax Index, Put Option, Strike Price10200, Feb. 2017 Morgan Stanley EUR (52) 3,140,896 (11,002) (512)

Sale Euro STOXX 50 Index, Put Option, StrikePrice 2800, Feb. 2017 Morgan Stanley EUR (156) 5,401,165 (10,674) 12,399








Number ofcontracts

purchased/(sold)

CommitmentUSD

MarketvalueUSD


USD

Sale Euro STOXX Utilities Index, Put Option,Strike Price 210, Feb. 2017 Morgan Stanley EUR (152) 1,955,278 (2,400) 5,185

Sale STOXX Europe 600 Industrial Goods &Services Index, Put Option, Strike Price410, Feb. 2017 Morgan Stanley EUR (144) 3,522,765 (7,579) 7,961

606,431 (104,460)

1,691,090 (288,234)




Number ofcontracts

purchased/(sold)

CommitmentUSD

MarketvalueUSD


USD

Equity OptionPurchase iShares Russell 2000 ETF, Put Option,

Strike Price 135, Jan. 2017 JPMorgan Chase Bank USD 39 525,915 8,853 2,207Purchase Nucor Corp., Call Option, Strike Price

70, Apr. 2017 JPMorgan Chase Bank USD 24 142,848 2,136 (1,306)Purchase Nucor Corp., Call Option, Strike Price

75, Jul. 2017 JPMorgan Chase Bank USD 24 142,848 2,341 (1,221)Purchase Sears Holdings Corp., Put Option, Strike

Price 10, Jan. 2018 JPMorgan Chase Bank USD 77 71,533 35,419 1,767Purchase SPDR S&P 500 ETF Trust, Put Option,

Strike Price 220, Jan. 2017 JPMorgan Chase Bank USD 10 223,530 1,380 (24)Purchase The Walt Disney Co., Call Option, Strike

Price 110, Feb. 2017 JPMorgan Chase Bank USD 46 479,412 4,232 (1,076)

54,361 347

Index OptionPurchase S&P 500 Index, Put Option, Strike Price

125, Jan. 2017 JPMorgan Chase Bank USD 19 4,253,777 7,467 (2,480)Purchase S&P 500 Index, Put Option, Strike Price

125, Jan. 2017 Morgan Stanley USD 6 1,343,298 2,358 (2,940)Purchase S&P 500 Index, Put Option, Strike Price

150, Jan. 2017 Morgan Stanley USD 12 2,686,596 13,140 3,564

22,965 (1,856)

77,326 (1,509)

Templeton Global Equity Income Fund



Number ofcontracts

purchased/(sold)

CommitmentUSD

MarketvalueUSD


USD

Equity OptionSale CRH PLC, Call Option, Strike Price

31.16, Jan. 2017 Bank of America EUR (35,000) 1,213,634 (74,751) (43,194)Sale Deutsche Lufthansa AG, Call Option,

Strike Price 12.5, Jan. 2017 Bank of America EUR (60,000) 774,630 (15,207) 6,451

(89,958) (36,743)





During the period, the Company participated in a securities lending programme with J.P. Morgan and Goldman Sachs.

As at December 31, 2016, the market value of the securities on loan and the corresponding collateral received were as follows:

Fundcurrency

Counterparty Market valueof securities

on loanin Fund currency

Market valueof sovereign bonds

received as collateralin Fund currency

Franklin Biotechnology Discovery Fund USD Barclays Bank 61,215,307 64,260,019Citibank 17,940,186 20,117,506Credit Suisse International 1,147,500 1,250,550Goldman Sachs 24,814,811 26,565,000Merrill Lynch International 5,594,890 6,183,992Morgan Stanley 11,465,379 12,230,218UBS 6,691,224 7,644,504

128,869,297 138,251,789

Franklin Natural Resources Fund USD Citibank 461,520 514,771UBS 1,366,890 1,495,591

1,828,410 2,010,362

Franklin Technology Fund USD Barclays Bank 496,672 630,006Citibank 11,219,025 12,428,938Goldman Sachs 1,422,113 1,577,039

13,137,810 14,635,983

Franklin U.S. Opportunities Fund USD Barclays Bank 6,274,900 6,510,015

Franklin U.S. Small-Mid Cap Growth Fund USD Barclays Bank 121,170 210,091Citibank 207,720 232,655

328,890 442,746

During the period, the securities lending programme generated the following revenues and expenses:

Fundcurrency

Grossearnings

in Fund currency

Direct and indirectoperational costs and fees

in Fund currency

Netearnings

in Fund currency

Franklin Biotechnology Discovery Fund USD 953,565 76,285 877,280Franklin Global Growth and Value Fund USD 1,971 158 1,813Franklin Natural Resources Fund USD 19,464 1,557 17,907Franklin Technology Fund USD 81,676 6,534 75,142Franklin U.S. Equity Fund USD 24,283 1,943 22,340Franklin U.S. Opportunities Fund USD 114,022 9,122 104,900Franklin U.S. Small-Mid Cap Growth Fund USD 16,522 1,322 15,200Franklin Mutual European Fund EUR 381,990 30,559 351,431Franklin Mutual Global Discovery Fund USD 122,389 9,791 112,598Templeton Euroland Fund EUR 55,361 4,429 50,932Templeton European Fund EUR 59,828 4,786 55,042Templeton Global Fund USD 88,469 7,077 81,392Templeton Global (Euro) Fund EUR 62,980 5,038 57,942Templeton Global Balanced Fund USD 17,099 1,368 15,731Templeton Global Equity Income Fund USD 19,820 1,586 18,234Templeton Growth (Euro) Fund EUR 383,095 30,648 352,447

Note 14 — Investment management feesThe Investment Managers, as noted on pages 4 to 6, receive from the Company a monthly fee equivalent to a certain percentage per annum (asdetailed below) of each Fund’s average daily net assets during the accounting period. When Funds invest in other Franklin Templeton funds, amanagement fee is not applied to the amounts invested. The following percentages apply in respect of the different Funds as at December 31,2016.

No management fee is payable by an investor on the acquisition of Class X and Class Y shares, instead a fee is paid to the Investment Manager oraffiliates under a separate agreement.

Class I Class S Class WOther Classes exceptClass X and Class Y

Franklin Asia Credit Fund 0.55% 0.75%Franklin Biotechnology Discovery Fund 0.70% 0.75% 1.00%Franklin Brazil Opportunities Fund 0.70% 1.00%Franklin Diversified Balanced Fund 0.55% 0.65% 0.85%Franklin Diversified Conservative Fund 0.50% 0.60% 0.80%Franklin Diversified Dynamic Fund 0.60% 0.70% 0.90%Franklin Euro Government Bond Fund 0.35% 0.50%Franklin Euro High Yield Fund 0.60% 0.70% 0.80%Franklin Euro Short Duration Bond Fund 0.30% 0.35% 0.45%Franklin Euro Short-Term Money Market Fund 0.20% 0.25%Franklin Euroland Fund 0.70% 1.00%Franklin European Fund 0.70% 1.00%Franklin European Corporate Bond Fund 0.40% 0.50% 0.65%Franklin European Dividend Fund 0.70% 1.00%Franklin European Growth Fund 0.70% 0.75% 1.00%Franklin European Income Fund 0.60% 0.75% 0.85%Franklin European Small-Mid Cap Growth Fund 0.70% 0.75% 1.00%



Note 13 — Securities lending


Class I Class S Class WOther Classes exceptClass X and Class Y

Franklin European Total Return Fund 0.55% 0.55% 0.75%Franklin Flexible Alpha Bond Fund 0.55% 0.75%Franklin GCC Bond Fund 0.55% 0.65% 0.75%Franklin Global Aggregate Bond Fund 0.40% 0.50% 0.65%Franklin Global Aggregate Investment Grade Bond Fund 0.40% 0.65%Franklin Global Convertible Securities Fund 0.60% 0.75%Franklin Global Corporate High Yield Fund 0.60%Franklin Global Equity Strategies Fund 0.75% 1.25%Franklin Global Fundamental Strategies Fund 0.70% 1.00%Franklin Global Government Bond Fund 0.40% 0.60%Franklin Global Growth Fund 0.70% 0.75% 1.00%Franklin Global Growth and Value Fund 1.00%Franklin Global High Income Bond Fund 0.60% 0.70% 0.80%Franklin Global Listed Infrastructure Fund 0.70% 0.75% 1.00%Franklin Global Multi-Asset Income Fund 0.60% 0.70% 0.85%Franklin Global Real Estate Fund 0.70% 0.75% 1.00%Franklin Global Small-Mid Cap Growth Fund 0.70% 0.75% 1.00%Franklin Gold and Precious Metals Fund 0.70% 1.00%Franklin High Yield Fund 0.60% 0.80%Franklin Income Fund 0.60% 0.85%Franklin India Fund 0.70% up to 0.70% 0.75% 1.00%Franklin Japan Fund 0.70% 0.75% 1.00%Franklin K2 Alternative Strategies Fund 1.75% 1.85% 2.05%Franklin K2 Global Macro Opportunities Fund 1.75% 1.85% 2.05%Franklin K2 Long Short Credit Fund 1.75% 1.85% 2.05%Franklin MENA Fund 1.05% 1.15% 1.50%Franklin Natural Resources Fund 0.70% 1.00%Franklin NextStep Balanced Growth Fund 0.85%Franklin NextStep Conservative Fund 0.60% 0.80%Franklin NextStep Dynamic Growth Fund 0.85%Franklin NextStep Growth Fund 0.70% 1.00%Franklin NextStep Moderate Fund 0.65% 0.95%Franklin NextStep Stable Growth Fund 0.80%Franklin Real Return Fund 0.75%Franklin Strategic Income Fund 0.55% 0.75%Franklin Technology Fund 0.70% 0.75% 1.00%Franklin U.S. Dollar Liquid Reserve Fund 0.30%Franklin U.S. Equity Fund 0.70% 0.75% 1.00%Franklin U.S. Government Fund 0.40% 0.50% 0.65%Franklin U.S. Low Duration Fund 0.40% 0.45% 0.65%Franklin U.S. Opportunities Fund 0.70% 0.75% 1.00%Franklin U.S. Small-Mid Cap Growth Fund 0.70% 1.00%Franklin U.S. Total Return Fund 0.55% 0.75%Franklin World Perspectives Fund 0.70% 0.75% 1.00%Franklin Mutual Beacon Fund 0.70% 1.00%Franklin Mutual European Fund 0.70% 0.75% 1.00%Franklin Mutual Global Discovery Fund 0.70% 0.75% 1.00%Templeton Africa Fund 1.10% 1.25% 1.60%Templeton ASEAN Fund 1.35%Templeton Asian Bond Fund 0.55% up to 0.55% 0.65% 0.75%Templeton Asian Dividend Fund 0.90% 1.00% 1.35%Templeton Asian Growth Fund 0.90% 1.00% 1.35%Templeton Asian Smaller Companies Fund 0.90% 1.00% 1.35%Templeton BRIC Fund 1.10% 1.25% 1.60%Templeton China Fund 1.10% 1.25% 1.60%Templeton Eastern Europe Fund 1.10% 1.25% 1.60%Templeton Emerging Markets Fund 1.10% 1.25% 1.60%Templeton Emerging Markets Balanced Fund 0.90% 1.00% 1.30%Templeton Emerging Markets Bond Fund 0.70% up to 0.70% 0.80% 1.00%Templeton Emerging Markets Smaller Companies Fund 1.10% 1.25% 1.60%Templeton Euroland Fund 0.70% 1.00%Templeton European Fund 0.70% 0.75% 1.00%Templeton Frontier Markets Fund 1.10% 1.25% 1.60%Templeton Global Fund 0.70% 0.75% 1.00%Templeton Global (Euro) Fund 0.70% 0.75% 1.00%Templeton Global Balanced Fund 0.60% 0.70% 0.80%Templeton Global Bond Fund 0.55% up to 0.55% 0.65% 0.75%Templeton Global Bond (Euro) Fund 0.55% 0.65% 0.75%Templeton Global Currency Fund 0.55% 0.65% 0.75%Templeton Global Equity Income Fund 0.70% 1.00%Templeton Global High Yield Fund 0.60% 0.85%Templeton Global Income Fund 0.60% up to 0.60% 0.85%Templeton Global Smaller Companies Fund 0.70% 1.00%Templeton Global Total Return Fund 0.55% up to 0.55% 0.65% 0.75%Templeton Growth (Euro) Fund 0.70% 1.00%Templeton Korea Fund 1.10% 1.60%Templeton Latin America Fund 1.00% 1.10% 1.40%Templeton Thailand Fund 1.25% 1.60%



Note 14 — Investment management fees (continued)


Consistent with obtaining best execution, brokerage commissions on portfolio transactions for the Company may be directed by the InvestmentManagers to broker-dealers in recognition of research services furnished by them as well as for services rendered in the execution of orders by suchbroker-dealers.

The receipt of investment research and information and related services permits the Investment Managers to supplement their own research andanalysis and makes available to them the views and information of individuals and research staffs of other firms.

Such related services do not include travel, accommodation, entertainment, general administrative goods or services, general office equipment orpremises, membership fees, employee salaries or direct money payment.

Note 16 — Connected party transactionsCertain Directors of the Company are or may also be Officers and/or Directors of one or more of the various Investment Managers of the Funds,among others, Templeton Asset Management Limited and Templeton Global Advisors Limited and the Commission Payer, Lightning FinanceLimited/SG Constellation One Inc. All transactions with connected parties were entered into in the ordinary course of business and under normalcommercial terms.

The investment management fees that are accrued by the Company in respect of the Management Company are detailed in note 14 to the financialstatements.

There are no connected brokers in Franklin Templeton Investments, and no transactions were entered into with connected brokers during the periodended December 31, 2016.

During the period ended December 31, 2016, the Company accrued administration and transfer agency fees and shares’ maintenance and servicecharges in respect of Franklin Templeton International Services S.à r.l. as Management Company and Principal Distributor of the Funds.

Note 17 — TaxationUnder current tax laws and practice, the Company is not liable in the Grand Duchy of Luxembourg to any taxes on income or on realised orunrealised capital gains.

The Company is liable in the Grand Duchy of Luxembourg to a tax of 0.05% per annum, such tax being paid quarterly, and calculated on the netasset value of each Fund at the end of each relevant quarter (except the Franklin Euro Short-Term Money Market Fund and the Franklin U.S. DollarLiquid Reserve Fund for which the rate is 0.01%). This tax is not applicable for the portion of the assets of a Fund invested in other undertakingsfor collective investment that have already been subject to such tax. Class I shares, Class X shares and Class Y shares may benefit from a reducedrate of 0.01% per annum if all shareholders of these share classes are institutional investors.

Investment income received or capital gains realised by the Company may be subject to tax in the countries of origin. All liabilities in respect oftaxes payable on unrealised capital gains on investments are provided for as soon as there is a reasonable certainty that a liability will crystallise.

No stamp duty or other tax is payable in the Grand Duchy of Luxembourg on the issue of shares in the Company.

The Company is registered for Value Added Tax in the Grand Duchy of Luxembourg and subject to account for Value Added Tax in accordancewith current laws.

Note 18 — Share classesClass A (acc) shares: No distribution of dividends is made in respect of Class A (acc) shares but the net income attributable is reflected in theincreased value of the shares. All other terms and conditions are the same as those which apply for Class A (dis) shares.

Class A (dis) shares: are offered at the applicable net asset value, plus an initial charge of up to 5.75% of the total amount invested varying perasset class. In addition, a maintenance charge of up to 0.50% per annum of the applicable average net asset value is deducted and paid to thePrincipal Distributor. This charge is accrued daily and is deducted and paid monthly to the Principal Distributor. A contingent deferred sales chargeof up to 1%, retained by the Principal Distributor, applies to certain redemptions on qualified investments of USD 1 million or more within 18months after repurchase.

Class AS (acc) shares: No distribution of dividends is made in respect of Class AS (acc) shares but the net income attributable is reflected in theincreased value of the shares. All other terms and conditions are the same as those which apply for Class AS (dis) shares.

Class AS (dis) shares: are offered in Singapore to CPF Investors as more fully described in the current prospectus of the Company. Class AS (acc)shares are offered at the applicable net asset value, plus an initial charge of up to 3% of the total amount invested. In addition, a maintenance chargeof up to 0.40% per annum of the applicable average net asset value is deducted and paid to the Principal Distributor. This charge is accrued dailyand is deducted and paid monthly to the Principal Distributor.

Class AX (acc) shares: are offered at the applicable net asset value, plus an initial charge of up to 5.75% of the total amount invested varying perasset class. In addition, a maintenance charge of up to 0.50% per annum of the applicable average net asset value is deducted and paid to thePrincipal Distributor. This charge is accrued daily and is deducted and paid monthly to the Principal Distributor. No distribution of dividends ismade in respect of Class AX (acc) shares but the net income attributable is reflected in the increased value of the shares. A contingent deferred salescharge of up to 1% applies to certain redemptions on qualified investments of USD 1 million or more within 18 months after repurchase.

Class B (acc) shares: As from April 1, 2016, no additional Class B Shares are issued. No distribution of dividends is made in respect of Class B (acc)shares but the net income attributable is reflected in the increased value of the shares. All other terms and conditions are the same as those whichapply for Class B (dis) shares.

Class B (dis) shares: As from April 1, 2016, no additional Class B Shares are issued. Class B Shares purchased by an Investor prior to April 1, 2016are subject to a contingent deferred sales charge up to 4% if such investor sells shares within 4 years of purchase. In addition, a maintenance chargeof up to 0.75% per annum of the applicable average net asset value and a servicing charge of 1.06% per annum of the applicable average net assetvalue are applied. These charges are accrued daily and are deducted and paid monthly to the Principal Distributor and/or other parties. Startingfrom 2011, shares will be automatically converted into Class A shares of the same Fund 7 years after their purchase as more fully disclosed in theprospectus.

Class C (acc) shares: No distribution of dividends is made but the net income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as the those which apply for Class C (dis) shares.



Note 15 — Soft commission


Class C (dis) shares: are not subject to an initial charge but are subject to a contingent deferred sales charge of 1.00% if an investor redeems shareswithin one year of purchase. In addition, a maintenance charge of 1.08% per annum of the applicable average net asset value is deducted. Thesecharges are accrued daily and are deducted and paid monthly to the Principal Distributor and/or other party.

Class I (acc) shares: No distribution of dividends is made but the net income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as those which apply for Class I (dis) shares.

Class I (dis) shares: are offered to institutional investors as more fully described in the current prospectus of the Company. Purchases of Class I (dis)shares are not subject to an initial sales charge, nor a contingent deferred sales charge or any maintenance or servicing charges.

Class N (acc) shares: No distribution of dividends is made but the net income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as these which apply for Class N (dis) shares.

Class N (dis) shares: are subject to an initial charge of up to 3% of the total amount invested. In addition, a maintenance charge of up to 1.25%per annum of the applicable average net asset value is accrued daily and is deducted and paid monthly to the Principal Distributor. Class N (dis)shares may be offered in certain limited circumstances as more fully described in the current prospectus of the Company.

Class S (acc) shares: No distribution of dividends is made but the net income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as these which apply for Class S (dis) shares.

Class S (dis) shares: are not subject to an entry charge, contingent deferred sales charge nor any maintenance or servicing charge. Class S (dis) sharesmay be offered in certain limited circumstances as more fully described in the current prospectus of the Company.

Class W (acc) shares: No distribution of dividends is made but the net income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as these which apply for Class W (dis) shares.

Class W (dis) shares: are not subject to an entry charge, contingent deferred sales charge nor any maintenance or servicing charge. Class W (dis)shares may be offered in certain limited circumstances as more fully described in the current prospectus of the Company.

Class X (acc) shares: No distribution of dividends is made but the net income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as these which apply for Class X (dis) shares.

Class X (dis) shares: are not subject to an initial charge and no management fees will be payable by an investor on the acquisition of Class X shares(instead a fee is paid to the Investment Manager or affiliates under an agreement between the Investment Manager and the investor). Class X sharesare offered to institutional investors in certain limited circumstances as more fully described in the current prospectus of the Company.

Class Y (acc) shares: No distribution of dividends is made but the net income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as these which apply for Class Y (dis) shares.

Class Y (dis) shares: are not subject to an initial charge and no management, registrar, transfer, corporate, domiciliary or administration fees willbe payable by an investor on the acquisition of Class Y shares (instead a fee is paid to the Investment Manager or affiliates under an agreementbetween the Investment Manager and the investor). Class Y shares are offered to institutional investors in certain limited circumstances as morefully described in the current prospectus of the Company.

Class Z (acc) shares: No distribution of dividends is made but the net income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as these which apply for Class Z (dis) shares.

Class Z (dis) shares: are not subject to an initial charge, contingent deferred sales charge nor any maintenance or servicing charge. Class Z (dis)shares may be offered in certain limited circumstances as more fully described in the current prospectus of the Company.

The distributing share classes may have different frequencies. Mdis share classes distribute monthly, Qdis share classes distribute quarterly and Ydisshare classes distribute annually.

Hedged share classes: In respect of hedged share classes, the Company offers the following alternatives:➤ H1: in order to reduce exchange rate fluctuations and return fluctuations, the base currency exposure of the hedged share class is hedged into

a specified alternative currency.➤ H2: a hedging strategy is applied in order to reduce the risk of currency movements between the currency of the hedged share class and other

material currencies of the securities held by the Fund.➤ H4: Where currency controls imposed by a country’s monetary authority prevent free movement of currency (“Restricted Currency”), another

hedging methodology is used. The share class is denominated in the base currency of the Fund but hedges the Fund’s base currency into aspecified Restricted Currency for investors in that Restricted Currency.

Note 19 — Expenses reimbursementOn a daily basis, for share classes where the expenses are capped, the level of expenses is calculated and compared to the cap and where the levelof expenses is higher than the cap, this difference is booked as a decrease of expense (the “waiver fees”). On a monthly basis the waiver fees arededucted from the fees received by Franklin Templeton International Services S.à r.l.

The amount of waiver fees is disclosed as “Expenses reimbursement” in the “Statement of Operations and Changes in Net Assets”.

Note 20 — Statement of changes in the investment portfolioA list, specifying for each Fund total purchases and sales transacted during the period under review, may be obtained, upon request, at the registeredoffice of the Company.



Note 18 — Share classes (continued)


Transaction costs are costs incurred to acquire and dispose of financial assets or liabilities. They include fees and commissions paid to agents,brokers and dealers. No transaction costs are charged by the Custodian. During the period ended December 31, 2016 the Company incurred thefollowing transaction costs:

Fund Currency AmountFranklin Asia Credit Fund USD –*Franklin Biotechnology Discovery Fund USD 674,568Franklin Brazil Opportunities Fund USD 17,775Franklin Diversified Balanced Fund EUR 76,097Franklin Diversified Conservative Fund EUR 72,572Franklin Diversified Dynamic Fund EUR 47,521Franklin Euro Government Bond Fund EUR 2,201Franklin Euro High Yield Fund EUR 3,372Franklin Euro Short Duration Bond Fund EUR –*Franklin Euro Short-Term Money Market Fund EUR –*Franklin Euroland Fund EUR 30,740Franklin European Fund EUR 8,694Franklin European Corporate Bond Fund EUR 613Franklin European Dividend Fund EUR 58,808Franklin European Growth Fund EUR 399,997Franklin European Income Fund EUR 8,527Franklin European Small-Mid Cap Growth Fund EUR 154,943Franklin European Total Return Fund EUR 5,585Franklin Flexible Alpha Bond Fund USD 12,238Franklin GCC Bond Fund USD –*Franklin Global Aggregate Bond Fund USD –*Franklin Global Aggregate Investment Grade BondFund USD –*Franklin Global Convertible Securities Fund USD 1,005Franklin Global Corporate High Yield Fund USD 97Franklin Global Equity Strategies Fund USD 33,651Franklin Global Fundamental Strategies Fund USD 258,906Franklin Global Government Bond Fund USD –*Franklin Global Growth Fund USD 20,749Franklin Global Growth and Value Fund USD 14,281Franklin Global High Income Bond Fund USD 1,800Franklin Global Listed Infrastructure Fund USD 31,936Franklin Global Multi-Asset Income Fund EUR 100,597Franklin Global Real Estate Fund USD 127,508Franklin Global Small-Mid Cap Growth Fund USD 53,495Franklin Gold and Precious Metals Fund USD 213,310Franklin High Yield Fund USD 56,814Franklin Income Fund USD 227,850Franklin India Fund USD 2,218,484Franklin Japan Fund JPY 58,222,646Franklin K2 Alternative Strategies Fund USD 608,261Franklin K2 Global Macro Opportunities Fund USD 3,519Franklin K2 Long Short Credit Fund USD 1,583Franklin MENA Fund USD 240,446Franklin Natural Resources Fund USD 128,963Franklin NextStep Balanced Growth Fund USD 31,114Franklin NextStep Conservative Fund USD 5,942Franklin NextStep Dynamic Growth Fund USD 7,866Franklin NextStep Growth Fund USD 3,158

Fund Currency AmountFranklin NextStep Moderate Fund USD 7,696Franklin NextStep Stable Growth Fund USD 5,176Franklin Real Return Fund USD –*Franklin Strategic Income Fund USD 2,075Franklin Technology Fund USD 241,451Franklin U.S. Dollar Liquid Reserve Fund USD –*Franklin U.S. Equity Fund USD 84,693Franklin U.S. Government Fund USD –*Franklin U.S. Low Duration Fund USD 13,905Franklin U.S. Opportunities Fund USD 808,893Franklin U.S. Small-Mid Cap Growth Fund USD 35,603Franklin U.S. Total Return Fund USD 1,230Franklin World Perspectives Fund USD 159,899Franklin Mutual Beacon Fund USD 83,449Franklin Mutual European Fund EUR 230,263Franklin Mutual Global Discovery Fund USD 146,247Templeton Africa Fund USD 117,462Templeton ASEAN Fund USD 6,161Templeton Asian Bond Fund USD –*Templeton Asian Dividend Fund USD 4,910Templeton Asian Growth Fund USD 2,368,114Templeton Asian Smaller Companies Fund USD 393,356Templeton BRIC Fund USD 204,274Templeton China Fund USD 114,326Templeton Eastern Europe Fund EUR 252,688Templeton Emerging Markets Fund USD 259,191Templeton Emerging Markets Balanced Fund USD 11,463Templeton Emerging Markets Bond Fund USD –*Templeton Emerging Markets Smaller CompaniesFund USD 114,533Templeton Euroland Fund EUR 180,670Templeton European Fund EUR 68,324Templeton Frontier Markets Fund USD 617,487Templeton Global Fund USD 462,762Templeton Global (Euro) Fund EUR 165,429Templeton Global Balanced Fund USD 162,394Templeton Global Bond Fund USD –*Templeton Global Bond (Euro) Fund EUR –*Templeton Global Currency Fund USD –*Templeton Global Equity Income Fund USD 43,139Templeton Global High Yield Fund USD –*Templeton Global Income Fund USD 524,121Templeton Global Smaller Companies Fund USD 34,731Templeton Global Total Return Fund USD –*Templeton Growth (Euro) Fund EUR 2,177,700Templeton Korea Fund USD 79,928Templeton Latin America Fund USD 241,644Templeton Thailand Fund USD 314,694

*For debt securities and derivatives, transaction costs are not separately identifiable from the purchase price of the security and therefore cannotbe disclosed separately.

Note 22 — EqualisationThe Funds use an accounting practice known as equalisation, by which a portion of the proceeds from issue and costs of redemption of shares,equivalent on a per share basis to the amount of undistributed investment income on the date of the transaction, is credited or charged toundistributed income which is disclosed as equalisation in the “Statement of Operations and Changes in Net Assets”. As a result, undistributedinvestment income per share is unaffected by issue or redemptions of shares.



Note 21 — Transaction costs


For the period ended December 31, 2016, the following amounts per share were paid out to distributing share class shareholders.

Accumulated dividends have not been paid out and are reflected as an increase in the “Issue of shares” account in the “Statement of Operationsand Changes in Net Assets”.

AnnualDistribution

Jul- 2016Jul-

2016Aug-

2016Sep-

2016Oct-

2016Nov-

2016Dec-

2016

Franklin Asia Credit FundA (Mdis) AUD-H1 0.033 0.034 0.036 0.030 0.033 0.036A (Mdis) SGD-H1 0.032 0.034 0.035 0.033 0.033 0.035A (Mdis) USD 0.033 0.034 0.034 0.033 0.032 0.035Y (Mdis) USD 0.034 0.035 0.035 0.035 0.033 0.036

Franklin Brazil Opportunities FundA (Qdis) HKD 0.163 0.166A (Qdis) USD 0.163 0.166N (Qdis) USD 0.162 0.165

Franklin Diversified Balanced FundA (Qdis) EUR 0.093 0.111A (Ydis) EUR 0.204I (Qdis) EUR 0.093 0.112I (Ydis) EUR -N (Ydis) EUR 0.316W (Ydis) EUR 0.300

Franklin Diversified Conservative FundA (Qdis) EUR 0.067 0.085A (Ydis) EUR 0.153I (Qdis) EUR 0.067 0.086I (Ydis) EUR 0.107N (Ydis) EUR 0.236W (Ydis) EUR 0.071

Franklin Diversified Dynamic FundA (Ydis) EUR -I (Ydis) EUR -W (Ydis) EUR 0.343

Franklin Euro Government Bond FundA (Ydis) EUR 0.110I (Qdis) EUR 0.033 0.019

Franklin Euro High Yield FundA (Mdis) EUR 0.025 0.024 0.023 0.024 0.022 0.023A (Mdis) USD 0.035 0.033 0.032 0.035 0.031 0.030A (Mdis) USD-H1 0.039 0.037 0.037 0.038 0.035 0.035A (Ydis) EUR 0.328B (Mdis) EUR 0.045 0.044 0.042 0.044 0.042 0.040B (Mdis) USD 0.036 0.035 0.033 0.036 0.032 0.031I (Ydis) EUR 0.498

Franklin Euro Short Duration Bond FundA (Ydis) EUR 0.058Y (Mdis) EUR 0.007 0.007 0.004 0.007 0.005 0.008

Franklin European FundA (Ydis) EUR 0.054

Franklin European Corporate Bond FundA (Ydis) EUR 0.245I (Ydis) EUR 0.246N (Ydis) EUR 0.244Y (Mdis) EUR 0.018 0.017 0.018 0.016 0.018 0.016

Franklin European Dividend FundA (Mdis) SGD-H1 0.121 0.037 0.038 0.037 0.037 0.037A (Mdis) USD 0.100 0.031 0.031 0.031 0.030 0.029A (Ydis) EUR 0.697Y (Mdis) EUR 0.106 0.033 0.033 0.032 0.032 0.032

Franklin European Growth FundA (Ydis) GBP 0.209

Franklin European Income FundA (Mdis) EUR 0.024 0.024 0.024 0.024 0.024 0.024A (Mdis) SGD-H1 0.024 0.024 0.024 0.024 0.024 0.024A (Mdis) USD 0.021 0.022 0.022 0.022 0.021 0.020I (Mdis) EUR 0.024 0.024 0.024 0.024 0.024 0.024N (Mdis) EUR 0.024 0.024 0.024 0.024 0.024 0.024N (Mdis) USD-H1 0.021 0.021 0.021 0.021 0.021 0.021W (Mdis) EUR 0.024 0.024 0.024 0.024 0.024 0.024Z (Mdis) EUR 0.024 0.024 0.024 0.024 0.024 0.024



Note 23 — Dividends distributed


AnnualDistribution

Jul- 2016Jul-

2016Aug-

2016Sep-

2016Oct-

2016Nov-

2016Dec-

2016

Franklin European Small-Mid Cap Growth FundY (Mdis) EUR 0.013 - 0.004 0.027 0.018 0.035

Franklin European Total Return FundA (Mdis) EUR 0.016 0.017 0.018 0.010 0.013 0.015A (Mdis) USD 0.018 0.019 0.019 0.012 0.014 0.016N (Mdis) EUR 0.018 0.018 0.020 0.012 0.014 0.016

Franklin Flexible Alpha Bond FundA (Qdis) EUR-H1 - 0.005I (Ydis) GBP-H1 0.017I (Ydis) USD 0.017N (Qdis) EUR-H1 - -N (Qdis) USD - -

Franklin GCC Bond FundA (Mdis) USD 0.048 0.048 0.045 0.045 0.041 0.041B (Mdis) USD 0.048 0.047 0.044 0.045 0.040 0.040W (Mdis) USD* - 0.042 0.041 0.039 0.037

Franklin Global Aggregate Bond FundA (Mdis) EUR 0.004 0.004 0.003 0.004 0.005 0.006A (Mdis) USD 0.003 0.003 0.003 0.003 0.004 0.004A (Qdis) GBP-H1Ω 0.007 0.010A (Ydis) EUR-H1Ω 0.022I (Qdis) EUR-H1Ω 0.022 0.025I (Qdis) GBP-H1Ω 0.024 0.028Z (Mdis) USD* - 0.005 0.006 0.006 0.006

Franklin Global Convertible Securities FundA (Ydis) EUR 0.041A (Ydis) EUR-H1 0.033

Franklin Global Corporate High Yield FundΩ

I (Ydis) EUR 0.701I (Ydis) EUR-H1 0.586

Franklin Global Equity Strategies FundA (Ydis) EUR 0.010

Franklin Global Fundamental Strategies FundA (Ydis) EUR 0.115N (Ydis) EUR 0.045

Franklin Global Government Bond FundΩ

A (Mdis) EUR 0.013 0.013 0.012 0.008 0.012A (Mdis) USD 0.011 0.011 0.011 0.008 0.010N (Mdis) USD 0.005 0.005 0.004 0.002 0.004

Franklin Global High Income Bond FundA (Mdis) HKD 0.043 0.043 0.043 0.043 0.043 0.043A (Mdis) SGDΩ 0.046 0.046 0.046 0.046 0.047 0.049A (Mdis) SGD-H1 0.043 0.043 0.043 0.043 0.043 0.043A (Mdis) USD 0.043 0.043 0.043 0.043 0.043 0.043N (Mdis) USD 0.039 0.039 0.039 0.039 0.039 0.039Y (Mdis) USD 0.048 0.045 0.051 0.052 0.052 0.052

Franklin Global Listed Infrastructure FundA (Mdis) SGD-H1 0.023 0.023 0.025 0.025 0.025 0.026A (Qdis) USD 0.125 0.052A (Ydis) EUR 0.342W (Qdis) GBP 0.151 0.067Y (Mdis) USD 0.061 0.006 0.026 0.017 0.013 0.028

Franklin Global Multi-Asset Income FundA (Mdis) EUR 0.041 0.041 0.041 0.041 0.040 0.040A (Mdis) SGD-H1 0.039 0.039 0.039 0.039 0.039 0.039A (Mdis) USD-H1 0.039 0.039 0.039 0.039 0.038 0.039A (Qdis) EUR 0.130 0.129A (Ydis) EUR 0.493I (Mdis) USD-H1 0.039 0.039 0.039 0.039 0.039 0.039I (Qdis) EUR 0.133 0.132I (Ydis) EUR 0.442N (Mdis) USD-H1 0.039 0.039 0.039 0.038 0.038 0.038N (Qdis) EUR 0.116 0.115N (Ydis) EUR 0.439W (Mdis) USD-H1*

W (Ydis) EUR 0.408Z (Mdis) USD-H1 0.039 0.039 0.039 0.039 0.039 0.039



Note 23 — Dividends distributed (continued)


AnnualDistribution

Jul- 2016Jul-

2016Aug-

2016Sep-

2016Oct-

2016Nov-

2016Dec-

2016

Franklin Global Real Estate FundA (Qdis) USD 0.066 0.057A (Ydis) EUR-H1 0.372B (Qdis) USD 0.063 0.055C (Qdis) USD 0.065 0.056W (Qdis) USD 0.072 0.062Y (Mdis) USD 0.030 0.011 0.019 0.029 0.007 0.023

Franklin Gold and Precious Metals FundA (Ydis) EUR -A (Ydis) EUR-H1Ω -

Franklin High Yield FundA (Mdis) AUD-H1 0.047 0.044 0.048 0.050 0.047 0.046A (Mdis) SGD-H1 0.039 0.038 0.041 0.043 0.041 0.039A (Mdis) USD 0.033 0.030 0.032 0.033 0.032 0.030B (Mdis) USD 0.032 0.030 0.031 0.033 0.031 0.030I (Mdis) USD 0.052 0.047 0.050 0.054 0.049 0.048N (Mdis) USD 0.046 0.041 0.044 0.047 0.043 0.042Y (Mdis) USD 0.049 0.046 0.048 0.052 0.048 0.047Z (Mdis) USD 0.049 0.044 0.047 0.050 0.047 0.044

Franklin Income FundA (Mdis) AUD-H1 0.045 0.045 0.041 0.041 0.041 0.041A (Mdis) EUR-H1 0.044 0.044 0.040 0.040 0.039 0.039A (Mdis) SGD-H1 0.040 0.040 0.036 0.036 0.036 0.036A (Mdis) USD 0.055 0.055 0.050 0.050 0.050 0.050B (Mdis) USD 0.052 0.052 0.047 0.047 0.047 0.047C (Mdis) USD 0.070 0.070 0.064 0.064 0.064 0.064I (Ydis) EUR-H1 0.484N (Mdis) EUR 0.048 0.048 0.044 0.043 0.044 0.046N (Mdis) EUR-H1 0.043 0.043 0.039 0.039 0.039 0.039N (Mdis) USD 0.043 0.043 0.039 0.039 0.039 0.039W (Mdis) USD*

Z (Mdis) USD 0.050 0.050 0.046 0.046 0.046 0.046

Franklin India FundA (Ydis) EUR -A (Ydis) GBP -I (Ydis) EUR 0.076Y (Mdis) USD 0.037 0.013 0.010 0.001 0.005 0.004

Franklin K2 Alternative Strategies FundA (Ydis) EUR -A (Ydis) EUR-H1 -A (Ydis) USD -N (Ydis) EUR-H1 -Y (Mdis) USD 0.020 0.019 0.021 0.018 0.017 0.020

Franklin K2 Global Macro Opportunities Fund*

A (Mdis) USD -A (Ydis) EURA (Ydis) USD

Franklin K2 Long Short Credit Fund*

A (Mdis) USDA (Ydis) EURA (Ydis) USD

Franklin MENA FundA (Ydis) USD 0.025I (Ydis) USDΩ 0.104W (Qdis) USD* -

Franklin Natural Resources FundA (Ydis) EUR-H1 -A (Ydis) USD -

Franklin NextStep Balanced Growth FundA (Mdis) HKD 0.010 0.014 0.009 0.009 0.007 0.013A (Mdis) SGD-H1 0.011 0.015 0.009 0.008 0.007 0.015A (Mdis) USD 0.011 0.014 0.009 0.009 0.007 0.014

Franklin NextStep Conservative FundA (Mdis) USD 0.012 0.017 0.010 0.011 0.010 0.018W (Mdis) EUR-H1 0.012 0.016 0.010 0.010 0.010 0.018W (Mdis) GBP-H1 0.013 0.018 0.011 0.011 0.011 0.018W (Mdis) USD 0.011 0.017 0.010 0.010 0.009 0.018





AnnualDistribution

Jul- 2016Jul-

2016Aug-

2016Sep-

2016Oct-

2016Nov-

2016Dec-

2016

Franklin NextStep Dynamic Growth FundA (Mdis) HKD 0.012 0.015 0.008 0.007 0.006 0.010A (Mdis) SGD-H1 0.012 0.015 0.008 0.007 0.006 0.011A (Mdis) USD 0.012 0.015 0.008 0.008 0.005 0.011

Franklin NextStep Growth FundA (Mdis) USD 0.013 0.015 0.004 0.006 0.005 0.013W (Mdis) EUR-H1 0.012 0.014 0.004 0.006 0.005 0.012W (Mdis) GBP-H1 0.014 0.017 0.004 0.006 0.006 0.012W (Mdis) USD 0.012 0.014 0.004 0.006 0.005 0.012

Franklin NextStep Moderate FundA (Mdis) USD 0.012 0.016 0.007 0.008 0.008 0.013W (Mdis) EUR-H1 0.012 0.015 0.006 0.007 0.007 0.013W (Mdis) GBP-H1 0.013 0.017 0.007 0.009 0.008 0.013W (Mdis) USD 0.012 0.014 0.007 0.008 0.007 0.012

Franklin NextStep Stable Growth FundA (Mdis) HKD 0.010 0.016 0.010 0.007 0.010 0.021A (Mdis) SGD-H1 0.010 0.016 0.010 0.007 0.010 0.022A (Mdis) USD 0.011 0.016 0.010 0.008 0.010 0.021

Franklin Real Return FundA (Ydis) EUR-H1 -

Franklin Strategic Income FundA (Mdis) AUD-H1 0.031 0.036 0.036 0.032 0.034 0.038A (Mdis) EUR 0.031 0.035 0.033 0.031 0.032 0.037A (Mdis) EUR-H1 0.031 0.033 0.033 0.031 0.031 0.035A (Mdis) SGD-H1 0.031 0.035 0.035 0.031 0.032 0.037A (Mdis) USD 0.036 0.038 0.038 0.034 0.035 0.040B (Mdis) USD 0.035 0.038 0.037 0.034 0.033 0.039C (Mdis) USD 0.035 0.038 0.037 0.035 0.034 0.039I (Ydis) USD 0.445N (Mdis) EUR-H1 0.031 0.034 0.033 0.030 0.031 0.035W (Mdis) USD*

Franklin U.S. Dollar Liquid Reserve FundA (Mdis) USD - - - - - -B (Mdis) USD - - - - - -

Franklin U.S. Equity FundY (Mdis) USD 0.004 0.007 0.012 0.009 0.003 0.011

Franklin U.S. Government FundA (Mdis) HKD 0.015 0.010 0.003 0.022 0.011 0.014A (Mdis) USD 0.014 0.009 0.003 0.020 0.010 0.013B (Mdis) USD 0.004 - - 0.003 - 0.003I (Mdis) JPY-H1 1.882 1.374 0.768 2.480 1.470 1.767I (Mdis) USD 0.020 0.014 0.008 0.025 0.015 0.018N (Mdis) USD 0.008 0.004 - 0.013 0.005 0.007W (Mdis) USD 0.018 0.013 0.007 0.024 0.014 0.017Z (Mdis) USD 0.017 0.012 0.006 0.023 0.013 0.016

Franklin U.S. Low Duration FundA (Mdis) USD 0.008 0.007 0.007 0.009 0.004 0.007B (Mdis) USD - - - - - -C (Mdis) USD - - - - - -N (Mdis) USD - - - - - -W (Qdis) USD 0.036 0.034

Franklin U.S. Opportunities FundA (Ydis) EUR -A (Ydis) GBP -X (Ydis) USD 0.023Y (Mdis) USD 0.004 0.003 0.005 0.003 0.001 0.005

Franklin U.S. Total Return FundA (Mdis) USD 0.013 0.014 0.016 0.016 0.011 0.016C (Mdis) USD 0.006 0.006 0.009 0.009 0.003 0.009I (Mdis) USD 0.019 0.018 0.022 0.020 0.015 0.021N (Mdis) USD 0.007 0.006 0.010 0.009 0.004 0.010Y (Mdis) USD 0.023 0.023 0.025 0.024 0.020 0.024

Franklin Mutual Beacon FundA (Ydis) USD 0.403





AnnualDistribution

Jul- 2016Jul-

2016Aug-

2016Sep-

2016Oct-

2016Nov-

2016Dec-

2016

Franklin Mutual European FundA (Ydis) EUR 0.434A (Ydis) GBP 0.333B (Ydis) EUR -I (Ydis) EUR 0.524W (Ydis) EUR 0.322Y (Mdis) EUR 0.137 0.005 0.023 0.006 0.001 0.030

Franklin Mutual Global Discovery FundA (Ydis) EUR 0.234A (Ydis) GBP 0.195

Templeton Africa FundA (Ydis) EUR 0.146A (Ydis) EUR-H1 0.121

Templeton ASEAN FundA (Ydis) USD 0.052

Templeton Asian Bond FundA (Mdis) AUD-H1 0.038 0.035 0.037 0.035 0.037 0.034A (Mdis) EUR 0.049 0.043 0.045 0.043 0.046 0.041A (Mdis) SGD 0.040 0.037 0.038 0.036 0.040 0.035A (Mdis) SGD-H1 0.038 0.035 0.035 0.036 0.036 0.033A (Mdis) USD 0.054 0.049 0.049 0.048 0.050 0.045B (Mdis) USD 0.053 0.048 0.048 0.048 0.048 0.044C (Mdis) USD 0.054 0.048 0.048 0.048 0.049 0.044I (Mdis) EUR 0.050 0.046 0.047 0.045 0.047 0.044I (Ydis) EUR-H1 0.438N (Mdis) USD 0.054 0.048 0.049 0.048 0.049 0.044W (Mdis) USD 0.041 0.036 0.037 0.037 0.037 0.033X (Ydis) USD 0.426Y (Mdis) USD 0.046 0.041 0.041 0.042 0.042 0.038

Templeton Asian Dividend FundA (Mdis) SGD-H1Ω 0.031 0.033 0.035 0.035 0.034A (Mdis) USD 0.032 0.033 0.035 0.036 0.034 0.033A (Qdis) EUR 0.119 0.119A (Ydis) EUR 0.530W (Qdis) GBPΩ 0.125 0.125Y (Mdis) USD - - 0.049 0.050 0.053 0.051

Templeton Asian Growth FundA (Ydis) EUR 0.126A (Ydis) GBP 0.105A (Ydis) USD 0.140I (Ydis) EUR-H2 0.105W (Ydis) EUR 0.140X (Ydis) USD 0.189Y (Mdis) USD 0.018 0.014 0.030 0.016 0.017 0.006Z (Ydis) EUR-H1 0.096Z (Ydis) USD 0.082

Templeton Asian Smaller Companies FundA (Ydis) USD 0.226X (Ydis) USD 0.278Y (Mdis) USD 0.016 0.047 0.044 0.011 0.040 0.003

Templeton BRIC FundA (Ydis) GBPΩ -

Templeton China FundA (Ydis) EUR 0.022A (Ydis) GBP -I (Ydis) GBP -W (Ydis) EUR 0.106

Templeton Eastern Europe FundA (Ydis) EUR -B (Ydis) EUR -

Templeton Emerging Markets FundA (Ydis) USD -

Templeton Emerging Markets Balanced FundA (Qdis) USD 0.051 0.043A (Ydis) EUR 0.212A (Ydis) EUR-H1 0.155B (Mdis) USDΩ 0.019 - 0.009 0.007 0.001 -W (Qdis) GBPΩ 0.089 0.082Z (Qdis) GBPΩ 0.084 0.076





AnnualDistribution

Jul- 2016Jul-

2016Aug-

2016Sep-

2016Oct-

2016Nov-

2016Dec-

2016

Templeton Emerging Markets Bond FundA (Mdis) AUD-H1 0.061 0.059 0.058 0.053 0.057 0.058A (Mdis) HKD 0.066 0.061 0.058 0.057 0.058 0.059A (Mdis) SGD-H1 0.058 0.056 0.054 0.052 0.054 0.055A (Mdis) USD 0.072 0.067 0.064 0.063 0.064 0.065A (Qdis) EUR 0.314 0.301A (Qdis) GBP 0.230 0.232A (Qdis) USD 0.346 0.335A (Ydis) EUR-H1 0.752B (Mdis) USD 0.071 0.067 0.063 0.061 0.063 0.063B (Qdis) USD 0.310 0.299I (Qdis) GBP-H1 0.201 0.189I (Qdis) USD 0.273 0.264I (Ydis) EUR-H1 0.752N (Mdis) USD 0.066 0.062 0.059 0.057 0.058 0.060N (Qdis) PLN-H1 0.225 0.203W (Qdis) EUR 0.221 0.214W (Qdis) GBP 0.209 0.210W (Qdis) GBP-H1 0.209 0.196W (Qdis) USD 0.168 0.164Y (Mdis) USD 0.077 0.072 0.069 0.067 0.068 0.070Z (Mdis) USD 0.063 0.059 0.056 0.055 0.056 0.057Z (Qdis) GBP-H1 0.208 0.196

Templeton Emerging Markets Smaller Companies FundA (Ydis) GBP 0.023A (Ydis) USD 0.034Y (Mdis) USD 0.013 0.035 0.029 0.009 0.020 0.006

Templeton Euroland FundA (Ydis) EUR 0.185B (Ydis) EUR -

Templeton European FundA (Ydis) USD 0.267

Templeton Frontier Markets FundA (Ydis) GBP 0.364A (Ydis) USD 0.286I (Ydis) GBP 0.608Z (Ydis) EUR-H1 0.229

Templeton Global FundA (Ydis) USD 0.205W (Ydis) USD 0.144X (Ydis) USD 0.197

Templeton Global (Euro) FundA (Ydis) EUR 0.138

Templeton Global Balanced FundA (Qdis) USD 0.240 0.165C (Qdis) USD 0.140 0.096I (Ydis) USD 0.318X (Ydis) USD 0.243





AnnualDistribution

Jul- 2016Jul-

2016Aug-

2016Sep-

2016Oct-

2016Nov-

2016Dec-

2016

Templeton Global Bond FundA (Mdis) AUD-H1 0.046 0.051 0.054 0.046 0.049 0.050A (Mdis) CAD-H1 0.042 0.048 0.050 0.042 0.047 0.046A (Mdis) EUR 0.072 0.080 0.083 0.071 0.077 0.080A (Mdis) EUR-H1 0.053 0.057 0.059 0.052 0.055 0.056A (Mdis) GBP 0.062 0.069 0.071 0.061 0.072 0.067A (Mdis) GBP-H1 0.046 0.049 0.049 0.041 0.048 0.043A (Mdis) HKD 0.044 0.048 0.050 0.044 0.045 0.046A (Mdis) RMB-H1 0.456 0.491 0.511 0.449 0.476 0.484A (Mdis) SGD 0.047 0.051 0.055 0.047 0.051 0.053A (Mdis) SGD-H1 0.049 0.055 0.058 0.050 0.054 0.054A (Mdis) USD 0.082 0.089 0.091 0.081 0.085 0.085A (Ydis) CHF-H1 0.472A (Ydis) EUR 0.828A (Ydis) EUR-H1 0.465B (Mdis) USD 0.084 0.091 0.094 0.083 0.086 0.086C (Mdis) USD 0.062 0.068 0.069 0.062 0.064 0.064I (Mdis) EUR 0.062 0.067 0.070 0.060 0.065 0.067I (Mdis) GBP 0.058 0.065 0.066 0.058 0.067 0.064I (Mdis) GBP-H1 0.050 0.054 0.054 0.049 0.052 0.048I (Mdis) JPY 4.968 5.367 5.758 4.889 5.436 5.892I (Mdis) JPY-H1 3.893 4.362 4.725 4.013 4.412 4.713I (Ydis) EUR 0.725I (Ydis) EUR-H1 0.471N (Mdis) EUR-H1 0.062 0.066 0.069 0.059 0.064 0.064N (Mdis) USD 0.044 0.047 0.048 0.043 0.045 0.045N (Ydis) EUR-H1 0.467S (Mdis) EUR 0.041 0.046 0.049 0.041 0.043 0.046W (Mdis) EUR 0.048 0.052 0.054 0.047 0.051 0.052W (Mdis) GBP 0.050 0.057 0.059 0.050 0.059 0.056W (Mdis) GBP-H1 0.047 0.051 0.051 0.043 0.049 0.045W (Mdis) USD 0.039 0.042 0.043 0.038 0.040 0.040W (Ydis) EUR 0.537W (Ydis) EUR-H1 0.429Y (Mdis) USD 0.020 0.050 0.052 0.047 0.047 0.049Z (Mdis) GBP-H1 0.047 0.052 0.050 0.044 0.049 0.045Z (Mdis) USD 0.042 0.045 0.047 0.041 0.043 0.043Z (Ydis) EUR-H1 0.467

Templeton Global Bond (Euro) FundA (Ydis) EUR 0.220N (Ydis) EUR 0.127

Templeton Global Equity Income FundA (Mdis) RMB-H1 0.413 0.414 0.342 0.343 0.344 0.345A (Mdis) SGD 0.026 0.026 0.022 0.022 0.022 0.023A (Mdis) USD 0.040 0.040 0.033 0.033 0.033 0.033AS (Mdis) SGD 0.041 0.041 0.034 0.034 0.035 0.036B (Qdis) USD 0.115 0.095I (Ydis) USDΩ 0.377N (Mdis) USD 0.037 0.037 0.031 0.031 0.031 0.031Y (Mdis) USD 0.047 0.048 0.039 0.039 0.039 0.039Z (Qdis) USD 0.132 0.109

Templeton Global High Yield FundA (Mdis) EUR 0.043 0.043 0.040 0.043 0.044 0.051A (Mdis) USD 0.049 0.047 0.045 0.048 0.048 0.054

Templeton Global Income FundA (Mdis) SGD-H1 0.039 0.020 0.038 0.030 0.023 0.024A (Qdis) EUR-H1 0.140 0.089A (Qdis) HKD 0.164 0.109A (Qdis) USD 0.191 0.125B (Qdis) USD 0.187 0.122C (Qdis) USD 0.189 0.124N (Qdis) EUR-H1 0.138 0.087

Templeton Global Smaller Companies FundA (Ydis) USD -





AnnualDistribution

Jul- 2016Jul-

2016Aug-

2016Sep-

2016Oct-

2016Nov-

2016Dec-

2016

Templeton Global Total Return FundA (Mdis) AUD-H1 0.056 0.061 0.060 0.056 0.062 0.062A (Mdis) EUR 0.075 0.083 0.078 0.075 0.081 0.084A (Mdis) EUR-H1 0.055 0.059 0.056 0.053 0.058 0.058A (Mdis) GBP 0.065 0.071 0.067 0.064 0.076 0.070A (Mdis) GBP-H1 0.045 0.050 0.044 0.041 0.048 0.043A (Mdis) HKD 0.055 0.060 0.057 0.055 0.058 0.058A (Mdis) RMB-H1 0.559 0.595 0.565 0.545 0.587 0.594A (Mdis) SGD 0.057 0.063 0.060 0.057 0.063 0.065A (Mdis) SGD-H1 0.055 0.060 0.058 0.055 0.059 0.060A (Mdis) USD 0.085 0.092 0.086 0.084 0.089 0.089A (Ydis) CHF-H1 0.616A (Ydis) EUR 0.919A (Ydis) EUR-H1 0.624B (Mdis) USD 0.083 0.090 0.085 0.081 0.087 0.087C (Mdis) USD 0.075 0.081 0.076 0.074 0.078 0.079I (Mdis) EUR 0.074 0.082 0.077 0.073 0.080 0.083I (Mdis) GBP 0.075 0.084 0.079 0.074 0.089 0.083I (Mdis) GBP-H1 0.066 0.068 0.062 0.060 0.069 0.063I (Mdis) JPY 6.142 6.555 6.419 5.998 6.780 7.298I (Mdis) JPY-H1 4.592 5.091 5.028 4.702 5.250 5.575I (Ydis) EUR 0.922I (Ydis) EUR-H1 0.629N (Mdis) EUR-H1 0.065 0.069 0.066 0.062 0.068 0.068N (Mdis) USD 0.045 0.047 0.045 0.044 0.046 0.046N (Ydis) EUR-H1 0.621S (Ydis) USD 0.554W (Mdis) EUR 0.057 0.062 0.060 0.056 0.061 0.064W (Mdis) GBP 0.062 0.069 0.065 0.061 0.073 0.068W (Mdis) GBP-H1 0.050 0.053 0.049 0.046 0.053 0.047W (Mdis) USD 0.046 0.050 0.047 0.046 0.048 0.048W (Ydis) EUR 0.683X (Ydis) USD 0.615Y (Mdis) USD 0.058 0.061 0.058 0.056 0.059 0.060Z (Mdis) GBP-H1 0.057 0.063 0.055 0.053 0.061 0.055Z (Mdis) USD 0.052 0.055 0.052 0.050 0.054 0.053Z (Ydis) EUR-H1 0.621

Templeton Growth (Euro) FundA (Ydis) EUR 0.084A (Ydis) USD 0.092B (Ydis) EUR -I (Ydis) EUR 0.206I (Ydis) USD 0.229

Templeton Latin America FundA (Ydis) EUR 0.278A (Ydis) GBP 0.217A (Ydis) USD 0.306I (Ydis) EUR-H2 0.113W (Ydis) USD 0.097

*These fund/ or share classes were launched during the period under reviewΩThese fund/ or share classes were closed during the period under review

Note 24 — Portfolio Turnover RatioThe portfolio turnover ratio, expressed as a percentage, is equal to the total of purchases and sales of securities netted against the absolute valueof subscriptions and redemptions, over average net assets of the Fund for the period. It is effectively a measure of how frequently a Fund buys orsells securities.

The portfolio turnover ratio calculation is not applicable to Liquid Reserve and Money Market Funds, as such a ratio is not relevant to such Fundsdue to the short-term nature of the investments.

Note 25 — Total Expense RatioThe Total Expense Ratio (“TER”), expressed as a percentage, represents how the total expenses of the Funds relate to the average net assets of theFunds for the period ended December 31, 2016. The total expenses comprise the investment management fees, the administration and transferagency fees, the custodian fees and other expenses as summarised in the “Statement of Operations and Changes in Net Assets”.

For share classes launched during the period, the TER is annualised.

Note 26 — Audited annual reports and unaudited semi-annual reportsThe audited annual reports and unaudited semi-annual reports are available on the following Franklin Templeton Investments website,www.franklintempleton.lu, or may be obtained, free of charge, on request at the registered office of the Company. They are only distributed toregistered Shareholders in those countries where local regulation so requires.





Effective February 12, 2016, the Company, together with other European and U.S. registered investment funds managed by Franklin TempletonInvestments (individually, “Borrower”; collectively “Borrowers”), entered into a joint syndicated senior unsecured credit facility totaling USD2,000 million (Global Credit Facility) to provide a source of funds to the Borrowers for temporary and emergency purposes, including the abilityto meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Company will, in addition to interest charged on any borrowings made by the Company and othercosts incurred by the Company, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the GlobalCredit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee based uponthe unused portion of the Global Credit Facility.

During the financial period ended December 31, 2016, the company did not use the Global Credit Facility.

Note 28 — Abbreviations

Countries

ARE United Arab EmiratesARG ArgentinaAUS AustraliaAUT AustriaBEL BelgiumBGD BangladeshBHR BahrainBIH Bosnia and HerzegovinaBMU BermudaBRA BrazilBWA BotswanaCAN CanadaCHE SwitzerlandCHL ChileCHN ChinaCIV Ivory CoastCOL ColombiaCYM Cayman IslandsCZE Czech RepublicDEU GermanyDNK DenmarkECU EcuadorEGY EgyptESP Spain

EST EstoniaETH EthiopiaFIN FinlandFRA FranceGBR United KingdomGEO GeorgiaGHA GhanaGRC GreeceHKG Hong KongHRV CroatiaHUN HungaryIDN IndonesiaIMN Isle of ManIND IndiaIRL IrelandIRQ IraqISR IsraelITA ItalyJEY JerseyJOR JordanJPN JapanKAZ KazakhstanKEN KenyaKHM Cambodia

KOR South KoreaKWT KuwaitLKA Sri LankaLTU LithuaniaLUX LuxembourgMAC MacaoMEX MexicoMNE MontenegroMUS MauritiusMWI MalawiMYS MalaysiaNGA NigeriaNLD NetherlandsNOR NorwayNZL New ZealandOMN OmanPAK PakistanPAN PanamaPER PeruPHL PhilippinesPOL PolandPRT PortugalPRY ParaguayQAT Qatar

ROU RomaniaRUS RussiaSAU Saudi ArabiaSEN SenegalSGP SingaporeSLV El SalvadorSP SupranationalSRB SerbiaSVK SlovakiaSWE SwedenTHA ThailandTUR TurkeyTWN TaiwanTZA TanzaniaUKR UkraineURY UruguayUSA United StatesVEN VenezuelaVNM VietnamZAF South AfricaZMB ZambiaZWE Zimbabwe

Currencies

AED United Arab Emirates DirhamARS Argentine PesoAUD Australian DollarBDT Bangladeshi TakaBRL Brazilian RealBWP Botswanan PulaCAD Canadian DollarCHF Swiss FrancCLP Chilean PesoCNH Chinese Renminbi - OffshoreCNY Chinese Yuan RenminbiCOP Colombian PesoCZK Czech KorunaDEM Deutsche Mark

DKK Danish KroneEGP Egyptian PoundEUR EuroGBP British Pound SterlingGHS Ghanaian CediHKD Hong Kong DollarHUF Hungarian ForintIDR Indonesian RupiahINR Indian RupeeJOD Jordanian DinarJPY Japanese YenKES Kenyan ShillingKRW South Korean WonKWD Kuwaiti Dinar

LKR Sri Lanka RupeeMUR Mauritius RupeeMXN Mexican PesoMYR Malaysian RinggitNGN Nigerian NairaNOK Norwegian KroneNZD New Zealand DollarOMR Omani RialPEN Peruvian Nuevo SolPHP Philippine PesoPKR Pakistan RupeePLN Polish ZlotyQAR Qatari RialRON New Romanian Leu

RSD Serbian DinarRUB Russian RubleSEK Swedish KronaSGD Singapore DollarTHB Thai BahtTRY Turkish LiraTWD New Taiwan DollarTZS Tanzanian ShillingUSD US DollarUYU Uruguayan PesoVND Vietnamese DongXOF CFA Franc BCEAOZAR South African Rand



Note 27 — Global Credit Facility


Number ofshares or

face value DescriptionCountry

codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETBONDSCorporate Bonds

250,000 Pertamina Persero PT, senior bond, 144A, 6.00%, 05/03/42 IDN USD 241,505 2.50200,000 Hutchison Whampoa International 09 Ltd., senior note, Reg S, 7.625%, 04/09/19 HKG USD 223,872 2.32200,000 Shimao Property Holdings Ltd., senior note, Reg S, 8.375%, 02/10/22 HKG USD 222,366 2.30200,000 NTPC Ltd., senior note, Reg S, 5.625%, 07/14/21 IND USD 218,675 2.27200,000 Standard Chartered Bank Hong Kong Ltd., sub. note, Reg S, 5.875%, 06/24/20 HKG USD 216,357 2.24200,000 Perusahaan Listrik Negara PT, senior note, Reg S, 5.50%, 11/22/21 IDN USD 214,917 2.23200,000 National Savings Bank, senior note, Reg S, 8.875%, 09/18/18 LKA USD 211,450 2.19200,000 Bharti Airtel International Netherlands BV, senior note, Reg S, 5.125%, 03/11/23 IND USD 209,110 2.17200,000 China Auto Rental Inc., senior note, 144A, 6.125%, 02/04/20 CHN USD 208,962 2.16200,000 PTT Global Chemical PCL, senior note, Reg S, 4.25%, 09/19/22 THA USD 208,147 2.16200,000 China Overseas Finance Cayman VI Ltd., senior note, Reg S, 4.25%, 05/08/19 CHN USD 207,687 2.15200,000 Golden Legacy Pte. Ltd., senior note, Reg S, 8.25%, 06/07/21 IDN USD 206,120 2.13200,000 Oversea-Chinese Banking Corp. Ltd., sub. note, 144A, 4.00% to 10/15/19, FRN thereafter,

10/15/24 SGP USD 205,562 2.13200,000 Siam Commercial Bank PCL, senior note, 144A, 3.50%, 04/07/19 THA USD 205,383 2.13200,000 Wynn Macau Ltd., senior note, 144A, 5.25%, 10/15/21 MAC USD 202,500 2.10200,000 Woori Bank, sub. note, 144A, 4.75%, 04/30/24 KOR USD 202,291 2.10200,000 ICTSI Treasury BV, senior note, Reg S, 4.625%, 01/16/23 PHL USD 202,214 2.09200,000 China Construction Bank Corp., sub. note, 3.875% to 05/13/20, FRN thereafter, 05/13/25 CHN USD 201,107 2.08200,000 Alibaba Group Holding Ltd., senior bond, 4.50%, 11/28/34 CHN USD 200,696 2.08200,000 Axis Bank Ltd./Dubai, senior note, 144A, 3.25%, 05/21/20 IND USD 200,077 2.07200,000 Industrial and Commercial Bank of China Ltd./Singapore, senior note, Reg S, 2.00%,

05/27/18 CHN USD 199,262 2.06200,000 Bestgain Real Estate Ltd., senior note, Reg S, 2.625%, 03/13/18 CHN USD 198,816 2.06200,000 Swire Properties MTN Financing Ltd., senior note, Reg S, 3.625%, 01/13/26 HKG USD 198,804 2.06200,000 Korea East West Power Co. Ltd., senior note, 144A, 2.50%, 06/02/20 KOR USD 198,768 2.06200,000 State Grid Overseas Investment 2013 Ltd., senior note, 144A, 3.125%, 05/22/23 CHN USD 198,740 2.06200,000 AIA Group Ltd., senior note, Reg S, 3.125%, 03/13/23 HKG USD 198,730 2.06200,000 United Overseas Bank Ltd., sub. bond, Reg S, 3.50% to 09/16/21, FRN thereafter, 09/16/26 SGP USD 198,509 2.06200,000 JD.com Inc., senior note, 3.125%, 04/29/21 CHN USD 197,794 2.05200,000 Abja Investment Co. Pte Ltd., senior note, Reg S, 5.95%, 07/31/24 IND USD 196,351 2.03200,000 BDO Unibank Inc., senior note, Reg S, 2.625%, 10/24/21 PHL USD 196,125 2.03200,000 Bank of East Asia Ltd., sub. note, Reg S, 4.00% to 11/03/21, FRN thereafter, 11/03/26 HKG USD 195,495 2.02200,000 Sinopec Capital 2013 Ltd., senior note, 144A, 3.125%, 04/24/23 CHN USD 195,359 2.02200,000 CNOOC Finance 2015 USA LLC, senior note, 3.50%, 05/05/25 CHN USD 195,291 2.02200,000 Country Garden Holdings Co. Ltd., first lien, Reg S, 4.75%, 09/28/23 CHN USD 195,104 2.02200,000 BOC Aviation Ltd., senior note, 144A, 3.875%, 04/27/26 SGP USD 194,549 2.02200,000 Adani Transmissions Ltd., secured note, Reg S, 4.00%, 08/03/26 IND USD 189,381 1.96200,000 TNB Global Ventures Capital Bhd., senior note, Reg S, 3.244%, 10/19/26 MYS USD 186,673 1.93150,000 DP World Ltd., senior bond, 144A, 6.85%, 07/02/37 ARE USD 160,612 1.66150,000 Bank of China Hong Kong, sub. note, Reg S, 5.55%, 02/11/20 HKG USD 159,884 1.66150,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 5.00%, 10/01/21 NLD USD 157,880 1.64150,000 Flextronics International Ltd., senior note, 4.625%, 02/15/20 SGP USD 157,802 1.63150,000 Hyundai Capital America, senior note, 144A, 2.00%, 03/19/18 USA USD 149,995 1.55110,000 Vedanta Resources PLC, senior note, Reg S, 9.50%, 07/18/18 IND USD 116,933 1.21100,000 CLP Power Hong Kong Financing Ltd., senior note, Reg S, 4.75%, 03/19/20 HKG USD 106,637 1.10100,000 ICICI Bank Ltd., junior sub. bond, 144A, 6.375% to 04/30/17, FRN thereafter, 04/30/22 IND USD 100,746 1.04

85,000 Western Digital Corp., senior secured note, 144A, 7.375%, 04/01/23 USA USD 93,712 0.9790,000 Woodside Finance Ltd., senior note, 144A, 3.65%, 03/05/25 AUS USD 87,961 0.9150,000 Mitsui Sumitomo Insurance Co. Ltd., junior sub. note, 144A, 7.00% to 03/15/22, FRN

thereafter, 03/15/72 JPN USD 56,688 0.5952,000 WPX Energy Inc., senior note, 6.00%, 01/15/22 USA USD 53,560 0.5650,000 NOVA Chemicals Corp., senior bond, 144A, 5.00%, 05/01/25 CAN USD 49,110 0.5150,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 44,750 0.4640,000 Equinix Inc., senior note, 4.875%, 04/01/20 USA USD 41,300 0.4340,000 JBS USA LLC/Finance Inc., senior note, 144A, 8.25%, 02/01/20 USA USD 41,200 0.4335,000 First Quantum Minerals Ltd., senior note, 144A, 6.75%, 02/15/20 CAN USD 35,088 0.3627,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 29,275 0.30

9,185,882 95.13

Government and Municipal Bonds200,000 Government of Indonesia, senior bond, 144A, 4.625%, 04/15/43 IDN USD 194,765 2.02100,000 The Export-Import Bank of Korea, senior note, 4.00%, 01/29/21 KOR USD 104,920 1.08

299,685 3.10

TOTAL BONDS 9,485,567 98.23

TOTAL TRANSFERABLE SECURITIES DEALT INON ANOTHER REGULATED MARKET 9,485,567 98.23

TOTAL INVESTMENTS 9,485,567 98.23


— Franklin Asia Credit Fund —

Schedule of Investments as of December 31, 2016(Currency — USD)



Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESBiotechnology

1,879,154 Celgene Corp. USA USD 217,512,075 9.97580,840 Biogen Inc. USA USD 164,714,607 7.55

1,153,300 Tesaro Inc. USA USD 155,095,784 7.111,154,878 Alexion Pharmaceuticals Inc. USA USD 141,299,323 6.471,187,297 Incyte Corp. USA USD 119,050,270 5.45

291,800 Regeneron Pharmaceuticals Inc. USA USD 107,116,862 4.911,405,700 Gilead Sciences Inc. USA USD 100,662,177 4.61

602,700 Amgen Inc. USA USD 88,120,767 4.04834,200 Vertex Pharmaceuticals Inc. USA USD 61,455,514 2.82712,109 BioMarin Pharmaceutical Inc. USA USD 58,991,110 2.70

1,764,500 Acadia Pharmaceuticals Inc. USA USD 50,888,180 2.331,183,705 Neurocrine Biosciences Inc. USA USD 45,809,384 2.102,665,510 Heron Therapeutics Inc. USA USD 34,918,181 1.60

413,545 Sage Therapeutics Inc. USA USD 21,115,608 0.97430,630 AveXis Inc. USA USD 20,553,970 0.94325,728 Bluebird Bio Inc. USA USD 20,097,418 0.92

1,831,413 Array BioPharma Inc. USA USD 16,098,120 0.74358,923 Clovis Oncology Inc. USA USD 15,943,360 0.73376,403 Radius Health Inc. USA USD 14,314,606 0.66

1,126,720 Edge Therapeutics Inc. USA USD 14,084,000 0.65850,745 Aquinox Pharmaceuticals Inc. CAN USD 14,045,800 0.64663,156 Retrophin Inc. USA USD 12,553,543 0.57

1,775,279 Lion Biotechnologies Inc. USA USD 12,338,189 0.57988,717 Axovant Sciences Ltd. USA USD 12,279,865 0.56322,400 Alnylam Pharmaceuticals Inc. USA USD 12,070,656 0.55400,800 Xencor Inc. USA USD 10,549,056 0.48580,400 La Jolla Pharmaceutical Co. USA USD 10,174,412 0.47543,000 REGENXBIO Inc. USA USD 10,072,650 0.46

1,042,395 Karyopharm Therapeutics Inc. USA USD 9,798,513 0.451,314,489 ChemoCentryx Inc. USA USD 9,727,219 0.45

901,069 Stemline Therapeutics Inc. USA USD 9,641,438 0.442,312,183 Merrimack Pharmaceuticals Inc. USA USD 9,433,707 0.43

712,200 Epizyme Inc. USA USD 8,617,620 0.39190,800 Kite Pharma Inc. USA USD 8,555,472 0.39395,822 Merus BV NLD USD 8,355,802 0.38

3,240,800 Fate Therapeutics Inc. USA USD 8,134,408 0.37869,485 Pfenex Inc. USA USD 7,886,229 0.36

1,861,000 Genocea Biosciences Inc. USA USD 7,667,320 0.35651,196 Natera Inc. USA USD 7,625,505 0.35296,277 Acceleron Pharma Inc. USA USD 7,560,989 0.35364,100 MacroGenics Inc. USA USD 7,442,204 0.34

2,023,523 Celldex Therapeutics Inc. USA USD 7,163,271 0.33465,096 Exelixis Inc. USA USD 6,934,581 0.32511,200 Minerva Neurosciences Inc. USA USD 6,006,600 0.27

1,150,200 Amicus Therapeutics Inc. USA USD 5,716,494 0.26172,900 Loxo Oncology Inc. USA USD 5,552,684 0.25394,800 Bellicum Pharmaceuticals Inc. USA USD 5,377,176 0.25815,694 Inotek Pharmaceuticals Corp. USA USD 4,975,733 0.23586,900 OncoMed Pharmaceuticals Inc. USA USD 4,524,999 0.21220,842 CRISPR Therapeutics AG CHE USD 4,474,259 0.20423,200 Concert Pharmaceuticals Inc. USA USD 4,354,728 0.20

3,429,265 Novavax Inc. USA USD 4,320,874 0.20227,700 Audentes Therapeutics Inc. USA USD 4,160,079 0.19416,700 Halozyme Therapeutics Inc. USA USD 4,116,996 0.19620,179 GlycoMimetics Inc. USA USD 3,783,092 0.17389,900 Cara Therapeutics Inc. USA USD 3,622,171 0.17123,600 Blueprint Medicines Corp. USA USD 3,466,980 0.16225,500 Ra Pharmaceuticals Inc. USA USD 3,425,345 0.16310,461 NewLink Genetics Corp. USA USD 3,191,539 0.15150,200 Alder Biopharmaceuticals Inc. USA USD 3,124,160 0.14655,383 Cascadian Therapeutics Inc. USA USD 2,824,702 0.13582,000 vTv Therapeutics Inc., A USA USD 2,811,060 0.13568,191 Vascular Biogenics Ltd. ISR USD 2,755,726 0.13498,826 Immune Design Corp. USA USD 2,743,543 0.13535,705 Tracon Pharmaceuticals Inc. USA USD 2,624,955 0.12146,500 Cellectis SA, ADR FRA USD 2,483,175 0.11187,600 Intellia Therapeutics Inc. USA USD 2,459,436 0.11199,700 Proteostasis Therapeutics Inc. USA USD 2,448,322 0.11610,660 Dynavax Technologies Corp. USA USD 2,412,107 0.11208,400 CytomX Therapeutics Inc. USA USD 2,290,316 0.10738,763 ARCA biopharma Inc. USA USD 2,105,475 0.10377,646 Mirati Therapeutics Inc. USA USD 1,793,819 0.08838,126 Mirna Therapeutics Inc. USA USD 1,508,627 0.07236,900 Trillium Therapeutics Inc. CAN USD 1,338,485 0.06

1,990,450 Anthera Pharmaceuticals Inc. USA USD 1,292,001 0.06927,783 Aptose Biosciences Inc. CAN CAD 1,250,586 0.06223,899 ADMA Biologics Inc. USA USD 1,146,363 0.05206,449 Sorrento Therapeutics Inc. USA USD 1,011,600 0.05


— Franklin Biotechnology Discovery Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Biotechnology (continued)186,400 ProQR Therapeutics NV NLD USD 913,360 0.04385,700 OvaScience Inc. USA USD 590,121 0.03

67,386 NantKwest Inc. USA USD 385,448 0.02

1,799,852,901 82.47

Health Care Equipment & Supplies1,648,200 Derma Sciences Inc. USA USD 8,570,640 0.39

Life Sciences Tools & Services329,600 Illumina Inc. USA USD 42,201,984 1.94

Pharmaceuticals278,103 GW Pharmaceuticals PLC, ADR GBR USD 31,078,010 1.42

4,420,429 TherapeuticsMD Inc. USA USD 25,505,875 1.17669,354 The Medicines Co. USA USD 22,717,875 1.04163,531 Jazz Pharmaceuticals PLC USA USD 17,829,785 0.82581,585 Aclaris Therapeutics Inc. USA USD 15,784,217 0.72

1,700,023 Egalet Corp. USA USD 13,005,176 0.60598,371 Revance Therapeutics Inc. USA USD 12,386,280 0.57

1,479,400 Aratana Therapeutics Inc. USA USD 10,622,092 0.49486,300 Collegium Pharmaceutical Inc. USA USD 7,571,691 0.35237,000 Theravance Biopharma Inc. CYM USD 7,555,560 0.35635,300 Foamix Pharmaceuticals Ltd. ISR USD 7,051,830 0.32309,400 Neuroderm Ltd. ISR USD 6,868,680 0.31

2,740,194 Alcobra Ltd. ISR USD 5,754,407 0.26207,230 Novan Inc. USA USD 5,599,355 0.26391,210 Zogenix Inc. USA USD 4,753,201 0.22831,800 Agile Therapeutics Inc. USA USD 4,741,260 0.22496,100 Neos Therapeutics Inc. USA USD 2,902,185 0.13282,400 Flex Pharma Inc. USA USD 1,491,072 0.07

1,350,365 Marinus Pharmaceuticals Inc. USA USD 1,363,869 0.06209,900 Nabriva Therapeutics AG, ADR AUT USD 1,248,905 0.06

2,500,000 BioPharmX Corp., 144A USA USD 935,000 0.04324,000 BioPharmX Corp. USA USD 121,176 0.00

206,887,501 9.48

TOTAL SHARES 2,057,513,026 94.28

TOTAL TRANSFERABLE SECURITIES ADMITTED TOAN OFFICIAL STOCK EXCHANGE LISTING 2,057,513,026 94.28

TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESBiotechnology

420,800 Lion Biotechnologies Inc. USA USD 2,924,560 0.13

Pharmaceuticals2,690,625 BioPharmX Corp. USA USD 1,006,294 0.05

138,878 BioPharmX Corp., 144A USA USD 51,940 0.00

1,058,234 0.05

TOTAL SHARES 3,982,794 0.18


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESBiotechnology

166,795 Intarcia Therapeutics Inc., DD ** USA USD 10,007,700 0.46234,477 CRISPR Therapeutics AG, Reg S ** CHE USD 4,506,582 0.20

1,239,800 True North Therapeutics Inc., pfd., Series D, 144A ** USA USD 3,099,996 0.14462,302 Fate Therapeutics Inc. ** USA USD 1,056,200 0.05

18,670,478 0.85

Pharmaceuticals166,482,090 Acerta Pharma BV ** NLD USD 6,201,125 0.29

1,413,571 G1 Therapeutics Inc., pfd. ** USA USD 4,200,002 0.19

10,401,127 0.48

TOTAL SHARES 29,071,605 1.33

WARRANTSBiotechnology

2,068,536 ARCA biopharma Inc., wts., 06/16/22 ** USA USD 103,681 0.01223,880 Northwest Biotherapeutics Inc., wts., 02/20/19 ** USA USD 34,834 0.00660,500 Threshold Pharmaceuticals Inc., wts., 02/12/20 USA USD 0 0.00

138,515 0.01



Schedule of Investments as of December 31, 2016 (continued)(Currency — USD)



Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Pharmaceuticals2,021,325 BioPharmX Corp., wts., 11/22/23 ** USA USD 48,512 0.00

162,000 BioPharmX Corp., wts., 03/29/21 ** USA USD 0 0.00

48,512 0.00

TOTAL WARRANTS 187,027 0.01

TOTAL TRANSFERABLE SECURITIES NOT ADMITTED TOAN OFFICIAL STOCK EXCHANGE LISTING NOR DEALT INON ANOTHER REGULATED MARKET 29,258,632 1.34

TOTAL INVESTMENTS 2,090,754,452 95.80

** These securities are submitted to a Fair Valuation






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESConsumer Discretionary

12,600 Tupy SA BRA BRL 46,495 0.18

Consumer Staples31,800 Ambev SA BRA BRL 160,236 0.6318,100 Sao Martinho SA BRA BRL 108,443 0.43

2,900 Companhia Brasileira de Distribuicao, pfd., A BRA BRL 48,783 0.19

317,462 1.25

Energy46,600 Petroleo Brasileiro SA, pfd. BRA BRL 212,905 0.84

Financials34,373 Itau Unibanco Holding SA, pfd. BRA BRL 357,491 1.4161,000 BM&F BOVESPA SA BRA BRL 309,245 1.2216,700 CETIP SA-Mercados Organizados BRA BRL 228,844 0.90

9,600 Banco Bradesco SA, pfd. BRA BRL 85,538 0.3429,600 Itausa-Investimentos Itau SA, pfd. BRA BRL 75,303 0.30

1,056,421 4.17

Health Care15,900 Fleury SA BRA BRL 174,159 0.6918,700 Hypermarcas SA BRA BRL 150,131 0.59

324,290 1.28

Industrials26,900 Embraer SA BRA BRL 132,239 0.52

Materials32,300 Gerdau SA BRA BRL 78,401 0.31

8,500 Gerdau SA, pfd. BRA BRL 28,205 0.11

106,606 0.42

Telecommunication Services8,400 Telefonica Brasil SA, pfd. BRA BRL 113,765 0.453,300 Telefonica Brasil SA BRA BRL 36,907 0.15

150,672 0.60

Utilities74,100 Cia de Saneamento do Parana, pfd. BRA BRL 244,746 0.9732,000 Energisa SA BRA BRL 182,678 0.7241,300 Cia Energetica de Sao Paulo, pfd., B BRA BRL 171,179 0.68

598,603 2.37

TOTAL SHARES 2,945,693 11.63

TOTAL TRANSFERABLE SECURITIES ADMITTED TOAN OFFICIAL STOCK EXCHANGE LISTING 2,945,693 11.63


1,200,000 Centrais Eletricas Brasileiras SA, senior note, Reg S, 5.75%, 10/27/21 BRA USD 1,178,214 4.651,000,000 Petrobras Global Finance BV, senior note, 8.375%, 05/23/21 BRA USD 1,079,500 4.26

600,000 Vale Overseas Ltd., senior note, 5.625%, 09/15/19 BRA USD 632,250 2.50600,000 Gerdau Trade Inc., senior bond, Reg S, 5.75%, 01/30/21 BRA USD 618,900 2.44500,000 Suzano Trading Ltd., senior bond, Reg S, 5.875%, 01/23/21 BRA USD 517,670 2.05400,000 Caixa Economica Federal, Reg S, 4.50%, 10/03/18 BRA USD 404,704 1.60400,000 Banco Do Brasil SA, junior sub. bond, Reg S, 9.00% to 06/18/24, FRN thereafter,

Perpetual BRA USD 378,194 1.49

4,809,432 18.99

Government and Municipal Bonds22,700 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 6,720,921 26.5413,920 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 4,032,329 15.92

4,200 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/21 BRA BRL 3,825,998 15.11253 Letras Financeiras do Tesouro, Strip, 09/01/18 BRA BRL 656,172 2.59180 Letras Financeiras do Tesouro, Strip, 09/01/21 BRA BRL 466,042 1.84

100,000 Government of Brazil, 10.125%, 05/15/27 BRA USD 136,928 0.54100,000 Government of Brazil, senior bond, 8.875%, 04/15/24 BRA USD 122,505 0.49

134 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/22 BRA BRL 121,376 0.48

16,082,271 63.51

TOTAL BONDS 20,891,703 82.50




— Franklin Brazil Opportunities Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAerospace & Defense

5,350 Lockheed Martin Corp. USA USD 1,270,841 0.8172,900 Singapore Technologies Engineering Ltd. SGP SGD 154,559 0.10

1,425,400 0.91

Auto Components5,750 Nokian Renkaat OYJ FIN EUR 203,665 0.13

Banks23,718 Commonwealth Bank of Australia AUS AUD 1,340,467 0.8656,000 United Overseas Bank Ltd. SGP SGD 749,862 0.4855,866 Standard Bank Group Ltd. ZAF ZAR 586,456 0.38

9,548 Nedbank Group Ltd. ZAF ZAR 157,285 0.101,176,742 Banco de Chile CHL CLP 130,271 0.08

56,461 Dubai Islamic Bank PJSC ARE AED 81,376 0.05

3,045,717 1.95

Capital Markets18,260 T. Rowe Price Group Inc. USA USD 1,306,071 0.8322,300 CI Financial Corp. CAN CAD 455,661 0.2992,300 Singapore Exchange Ltd. SGP SGD 433,788 0.28

9,380 Eaton Vance Corp. USA USD 373,346 0.2472,770 Aberdeen Asset Management PLC GBR GBP 219,206 0.14

2,788,072 1.78

Chemicals15,120 BASF SE DEU EUR 1,335,247 0.85

8,700 Air Products and Chemicals Inc. USA USD 1,189,160 0.76

2,524,407 1.61

Commercial Services & Supplies86,874 Brambles Ltd. AUS AUD 738,771 0.47

1,540 Societe BIC SA FRA EUR 198,891 0.13

937,662 0.60

Construction & Engineering14,730 Skanska AB, B SWE SEK 330,571 0.21

4,130 Boskalis Westminster NLD EUR 136,249 0.09

466,820 0.30

Consumer Finance9,770 Provident Financial PLC GBR GBP 325,872 0.21

Diversified Financial Services173,357 FirstRand Ltd. ZAF ZAR 637,628 0.41

39,321 RMB Holdings Ltd. ZAF ZAR 180,614 0.11

818,242 0.52

Diversified Telecommunication Services287,855 Telstra Corp. Ltd. AUS AUD 1,006,798 0.64412,900 Singapore Telecommunications Ltd. SGP SGD 989,238 0.63

1,400 Swisscom AG CHE CHF 595,897 0.3841,730 Telenor ASA NOR NOK 592,211 0.3892,193 Emirates Telecommunications Group Co. PJSC ARE AED 448,485 0.29

7,500 BCE Inc. CAN CAD 308,038 0.209,500 TELUS Corp. CAN CAD 287,442 0.18

4,228,109 2.70

Electric Utilities75,500 CLP Holdings Ltd. HKG HKD 659,295 0.4219,960 Red Electrica Corp. SA ESP EUR 357,783 0.23

1,017,078 0.65

Electrical Equipment26,210 Emerson Electric Co. USA USD 1,388,717 0.8963,940 ABB Ltd. CHE CHF 1,281,711 0.82

2,670,428 1.71

Electronic Equipment, Instruments & Components12,000 Simplo Technology Co. Ltd. TWN TWD 32,646 0.02

Food & Staples Retailing8,740 The Spar Group Ltd. ZAF ZAR 120,062 0.08

Health Care Equipment & Supplies17,090 Danaher Corp. USA USD 1,264,290 0.81

Health Care Providers & Services18,478 Sonic Healthcare Ltd. AUS AUD 271,186 0.17


— Franklin Diversified Balanced Fund —

Schedule of Investments as of December 31, 2016(Currency — EUR)



Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Hotels, Restaurants & Leisure11,670 McDonald’s Corp. USA USD 1,350,002 0.8672,950 Compass Group PLC GBR GBP 1,281,934 0.8239,280 William Hill PLC GBR GBP 133,453 0.09

3,226 Flight Centre Travel Group Ltd. AUS AUD 69,248 0.04

2,834,637 1.81

Household Durables7,030 Leggett & Platt Inc. USA USD 326,579 0.216,160 Garmin Ltd. USA USD 283,880 0.18

610,459 0.39

Household Products11,550 Kimberly-Clark Corp. USA USD 1,252,695 0.80

Insurance59,730 AXA SA FRA EUR 1,432,624 0.92

8,590 Allianz SE DEU EUR 1,348,630 0.865,040 Zurich Insurance Group AG CHE CHF 1,318,839 0.84

14,170 Swiss Re AG CHE CHF 1,276,087 0.82265,730 Legal & General Group PLC GBR GBP 770,284 0.49240,280 Old Mutual PLC GBR GBP 583,145 0.37

7,460 Cincinnati Financial Corp. USA USD 537,060 0.348,690 Arthur J. Gallagher & Co. USA USD 429,132 0.27

81,230 Sanlam Ltd. ZAF ZAR 353,449 0.2312,900 Great-West Lifeco Inc. CAN CAD 321,109 0.21

7,360 SCOR SE FRA EUR 241,629 0.166,760 Tryg A/S DNK DKK 116,137 0.07

40,876 Rand Merchant Investment Holdings Ltd. ZAF ZAR 112,541 0.07

8,840,666 5.65

IT Services21,650 Paychex Inc. USA USD 1,252,663 0.80

Machinery38,970 Atlas Copco AB, A SWE SEK 1,128,275 0.7221,660 Kone OYJ, B FIN EUR 922,066 0.5922,700 Atlas Copco AB SWE SEK 588,774 0.38

6,730 Dover Corp. USA USD 479,261 0.30

3,118,376 1.99

Media18,300 Shaw Communications Inc. CAN CAD 348,931 0.22

Multiline Retail12,310 Next PLC GBR GBP 718,139 0.46

9,820 Nordstrom Inc. USA USD 447,323 0.2981,360 Marks & Spencer Group PLC GBR GBP 333,379 0.21

1,498,841 0.96

Multi-Utilities1,317 Qatar Electricity & Water Co. QSC QAT QAR 78,027 0.05

Oil, Gas & Consumable Fuels8,500 Keyera Corp. CAN CAD 243,408 0.16

Personal Products31,090 Unilever NV, IDR GBR EUR 1,216,085 0.78

Pharmaceuticals18,050 Eli Lilly & Co. USA USD 1,261,716 0.81

5,680 Roche Holding AG CHE CHF 1,232,938 0.7911,200 Eisai Co. Ltd. JPN JPY 610,825 0.39

3,105,479 1.99

Professional Services350 SGS SA CHE CHF 676,770 0.43

14,870 Wolters Kluwer NV NLD EUR 511,825 0.33

1,188,595 0.76

Road & Rail121,800 ComfortDelGro Corp. Ltd. SGP SGD 197,473 0.13

Semiconductors & Semiconductor Equipment37,910 Intel Corp. USA USD 1,306,782 0.84

9,090 KLA-Tencor Corp. USA USD 679,720 0.4316,530 Maxim Integrated Products Inc. USA USD 605,932 0.39

2,592,434 1.66

Software13,220 CA Inc. USA USD 399,163 0.26



Schedule of Investments as of December 31, 2016 (continued)(Currency — EUR)



Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Specialty Retail46,640 Hennes & Mauritz AB, B SWE SEK 1,233,067 0.7915,640 Best Buy Co. Inc. USA USD 634,251 0.4097,640 Kingfisher PLC GBR GBP 400,431 0.2625,150 Truworths International Ltd. ZAF ZAR 138,609 0.09

2,406,358 1.54

Technology Hardware, Storage & Peripherals44,900 CANON Inc. JPN JPY 1,202,839 0.77

Textiles, Apparel & Luxury Goods7,250 LVMH Moet Hennessy Louis Vuitton SE FRA EUR 1,315,150 0.84

15,730 Coach Inc. USA USD 523,536 0.344,670 Hugo Boss AG DEU EUR 271,467 0.17

33,500 Yue Yuen Industrial Holdings Ltd. HKG HKD 115,577 0.07

2,225,730 1.42

Tobacco20,140 Altria Group Inc. USA USD 1,294,304 0.8323,160 British American Tobacco PLC GBR GBP 1,253,086 0.8013,650 Philip Morris International Inc. USA USD 1,186,883 0.76

5,427 KT&G Corp. KOR KRW 431,503 0.2811,060 Swedish Match AB SWE SEK 334,407 0.2114,600 British American Tobacco Malaysia Bhd. MYS MYR 137,953 0.09

4,638,136 2.97

Transportation Infrastructure18,400 Grupo Aeroportuario del Pacifico SAB de CV MEX MXN 143,770 0.09

Wireless Telecommunication Services51,700 NTT DoCoMo Inc. JPN JPY 1,119,354 0.7217,500 Rogers Communications Inc., B CAN CAD 641,467 0.4199,000 Taiwan Mobile Co. Ltd. TWN TWD 301,506 0.1953,400 StarHub Ltd. SGP SGD 98,494 0.06

2,160,821 1.38

TOTAL SHARES 63,695,242 40.73


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETINVESTMENTS FUNDSDiversified Financial Services

513,744 FTSIIF Franklin Emerging Market Corporate Debt Fund, Class Y (Mdis) EUR LUX EUR 5,466,241 3.50489,634 FTIF Franklin European Small-Mid Cap Growth Fund, Class Y (Mdis) EUR LUX EUR 4,416,499 2.82437,814 FTIF Franklin Euro Short Duration Bond Fund, Class Y (Mdis) EUR LUX EUR 4,408,787 2.82430,933 FTIF Templeton Emerging Markets Smaller Companies Fund, Class Y (Mdis) USD LUX USD 3,759,704 2.40370,978 FTIF Templeton Emerging Markets Bond Fund, Class Y (Mdis) USD LUX USD 3,374,134 2.16

21,425,365 13.70

TOTAL INVESTMENTS FUNDS 21,425,365 13.70

WARRANTSBanks

1,111,471 Societe Generale SA, wts., 12/22/17 FRA EUR 1,067,227 0.68

TOTAL WARRANTS 1,067,227 0.68

BONDSCorporate Bonds

490,000 Merrill Lynch & Co. Inc., senior note, 6.875%, 04/25/18 USA USD 495,075 0.32290,000 Verizon Communications Inc., senior bond, 6.55%, 09/15/43 USA USD 344,842 0.22320,000 The Goldman Sachs Group Inc., senior note, 5.75%, 01/24/22 USA USD 341,956 0.22270,000 CVS Health Corp., senior note, 2.25%, 12/05/18 USA USD 258,919 0.17180,000 Citigroup Inc., senior bond, 8.125%, 07/15/39 USA USD 254,597 0.16240,000 Morgan Stanley, senior note, 5.50%, 07/28/21 USA USD 252,796 0.16250,000 Kraft Heinz Foods Co., senior bond, 5.20%, 07/15/45 USA USD 248,757 0.16260,000 The Coca-Cola Co., senior note, 1.375%, 05/30/19 USA USD 245,483 0.16250,000 JPMorgan Chase & Co., senior note, 3.90%, 07/15/25 USA USD 244,260 0.16255,000 Alibaba Group Holding Ltd., senior note, 2.50%, 11/28/19 CHN USD 243,429 0.16265,000 Danone SA, senior note, 144A, 2.589%, 11/02/23 FRA USD 241,807 0.15230,000 Anheuser-Busch InBev Finance Inc., senior bond, 4.70%, 02/01/36 BEL USD 230,571 0.15250,000 Marriott International Inc., senior bond, 3.125%, 06/15/26 USA USD 225,015 0.14250,000 Siemens Financieringsmaatschappij NV, senior note, 144A, 2.00%, 09/15/23 DEU USD 223,830 0.14200,000 AXA SA, sub. bond, Reg S, 5.25% to 04/16/20, FRN thereafter, 04/16/40 FRA EUR 223,029 0.14200,000 Allianz SE, sub. note, Reg S, 4.75% to 10/24/23, FRN thereafter, Perpetual DEU EUR 221,700 0.14200,000 Kerry Group Financial Services, senior note, Reg S, 2.375%, 09/10/25 IRL EUR 218,859 0.14200,000 Compass Group PLC, senior note, Reg S, 1.875%, 01/27/23 GBR EUR 215,866 0.14170,000 Wal-Mart Stores Inc., senior bond, 6.20%, 04/15/38 USA USD 213,048 0.14200,000 Klepierre, senior note, Reg S, 1.75%, 11/06/24 FRA EUR 212,467 0.14220,000 ING Bank NV, sub. note, Reg S, 4.125% to 11/21/13, FRN thereafter, 11/21/23 NLD USD 212,304 0.14200,000 Danske Bank AS, sub. note, Reg S, FRN, 3.875%, 10/04/23 † DNK EUR 212,030 0.14200,000 Skandinaviska Enskilda Banken AB, sub. bond, Reg S, 2.50% to 05/28/21, FRN

thereafter, 05/28/26 SWE EUR 210,946 0.13200,000 Anheuser-Busch InBev SA/NV, senior note, Reg S, 1.50%, 03/17/25 BEL EUR 208,403 0.13200,000 Rabobank Nederland, sub. bond, Reg S, 2.50% to 05/26/21, FRN thereafter, 05/26/26 NLD EUR 207,899 0.13220,000 Dollar General Corp., senior bond, 3.25%, 04/15/23 USA USD 206,398 0.13






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)150,000 Telefonica Emisiones S.A.U., senior bond, Reg S, 5.289%, 12/09/22 ESP GBP 205,793 0.13214,000 Comcast Corp., senior bond, 3.375%, 08/15/25 USA USD 204,563 0.13210,000 Walgreens Boots Alliance Inc., senior note, 3.80%, 11/18/24 USA USD 203,219 0.13200,000 Commonwealth Bank of Australia, sub. bond, Reg S, 2.00% to 04/21/22, FRN

thereafter, 04/22/27 AUS EUR 201,754 0.13200,000 General Electric Co., junior sub. bond, 5.00% to 01/21/21, FRN thereafter, Perpetual USA USD 197,481 0.13190,000 Liberty Mutual Group Inc., senior note, 144A, 4.95%, 05/01/22 USA USD 197,060 0.13190,000 Telstra Corp. Ltd., senior note, 144A, 4.80%, 10/12/21 AUS USD 196,921 0.13200,000 American Tower Corp., senior note, 3.40%, 02/15/19 USA USD 194,278 0.12190,000 Gilead Sciences Inc., senior note, 4.40%, 12/01/21 USA USD 194,216 0.12190,000 Baxalta Inc., senior bond, 5.25%, 06/23/45 USA USD 192,822 0.12200,000 Daimler Finance North America LLC, senior note, 144A, 2.375%, 08/01/18 DEU USD 191,529 0.12150,000 Bupa Finance PLC, sub. note, Reg S, 5.00%, 04/25/23 GBR GBP 190,788 0.12200,000 ANZ New Zealand International Ltd. of London, senior note, 144A, 2.75%, 02/03/21 NZL USD 190,141 0.12200,000 ATF Netherlands BV, senior note, Reg S, 1.50%, 07/15/24 DEU EUR 188,067 0.12200,000 Sinopec Capital 2013 Ltd., senior note, 144A, 3.125%, 04/24/23 CHN USD 185,667 0.12150,000 APT Pipelines Ltd., senior bond, Reg S, 3.50%, 03/22/30 AUS GBP 180,125 0.11150,000 Intesa Sanpaolo SpA, senior note, Reg S, 4.00%, 10/30/23 ITA EUR 176,531 0.11150,000 WPP Finance 2013, senior note, Reg S, 3.00%, 11/20/23 GBR EUR 173,318 0.11150,000 National Grid Gas Finance PLC, senior bond, Reg S, 2.125%, 09/22/28 GBR GBP 172,085 0.11150,000 BHP Billiton Finance Ltd., sub. bond, Reg S, 5.625% to 10/22/24, FRN thereafter,

10/22/79 AUS EUR 171,388 0.11180,000 HSBC USA Inc., senior note, 2.35%, 03/05/20 USA USD 169,699 0.11175,000 Simon Property Group LP, senior bond, 3.375%, 10/01/24 USA USD 168,052 0.11175,000 Glencore Funding LLC, senior note, 144A, 4.125%, 05/30/23 CHE USD 167,607 0.11150,000 Bacardi Ltd., senior note, Reg S, 2.75%, 07/03/23 BMU EUR 167,024 0.11150,000 Carlsberg Breweries A/S, senior note, Reg S, 2.50%, 05/28/24 DNK EUR 165,336 0.11175,000 AT&T Inc., senior note, 2.45%, 06/30/20 USA USD 165,179 0.11150,000 Standard Chartered PLC, senior note, Reg S, 4.125%, 01/18/19 GBR EUR 162,079 0.10170,000 Anthem Inc., senior bond, 3.30%, 01/15/23 USA USD 161,344 0.10160,000 Charter Communications Operating LLC/Charter Communications Operating Capital

Corp., senior secured note, first lien, 4.464%, 07/23/22 USA USD 158,937 0.10140,000 Reynolds American Inc., senior bond, 5.85%, 08/15/45 USA USD 157,849 0.10144,000 Ford Motor Credit Co. LLC, senior note, 8.125%, 01/15/20 USA USD 157,835 0.10150,000 Yorkshire Building Society, senior note, Reg S, 2.125%, 03/18/19 GBR EUR 156,209 0.10155,000 LYB International Finance BV, senior note, 4.00%, 07/15/23 USA USD 154,163 0.10170,000 Realty Income Corp., senior bond, 3.00%, 01/15/27 USA USD 152,201 0.10150,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 5.00%, 10/01/21 NLD USD 150,048 0.10150,000 Chorus Ltd., senior note, Reg S, 1.125%, 10/18/23 NZL EUR 149,505 0.10155,000 Woodside Finance Ltd., senior note, 144A, 3.65%, 03/05/25 AUS USD 143,973 0.09150,000 Prudential Financial Inc., junior sub. bond, 5.20% to 03/15/24, FRN thereafter,

03/15/44 USA USD 141,050 0.09120,000 Western Digital Corp., senior secured note, 144A, 7.375%, 04/01/23 USA USD 125,737 0.08130,000 Wells Fargo & Co., senior note, 3.45%, 02/13/23 USA USD 123,973 0.08130,000 Hyundai Capital America, senior note, 144A, 2.00%, 03/19/18 USA USD 123,546 0.08110,000 Kinder Morgan Energy Partners LP, senior bond, 6.50%, 09/01/39 USA USD 115,716 0.07110,000 Enterprise Products Operating LLC, senior bond, 3.90%, 02/15/24 USA USD 107,867 0.07100,000 Iberdrola Finanzas, senior note, Reg S, 1.00%, 03/07/24 ESP EUR 101,187 0.06100,000 WPX Energy Inc., senior note, 6.00%, 01/15/22 USA USD 97,890 0.06100,000 Koninklijke KPN NV, senior bond, Reg S, 1.125%, 09/11/28 NLD EUR 94,542 0.06

90,000 CIT Group Inc., secured note, 144A, 5.50%, 02/15/19 USA USD 90,453 0.0685,000 Navient Corp., senior note, 7.25%, 09/25/23 USA USD 83,207 0.0580,000 HCA Inc., senior secured bond, first lien, 5.875%, 03/15/22 USA USD 82,114 0.0585,000 PSEG Power LLC, senior note, 3.00%, 06/15/21 USA USD 81,043 0.0570,000 MetLife Inc., junior sub. note, 6.40% to 12/15/36, FRN thereafter, 12/15/66 USA USD 72,016 0.0590,000 Weatherford International Ltd., senior bond, 7.00%, 03/15/38 USA USD 71,422 0.0570,000 ArcelorMittal, senior bond, 7.75%, 03/01/41 FRA USD 70,991 0.0575,000 NOVA Chemicals Corp., senior bond, 144A, 5.00%, 05/01/25 CAN USD 70,010 0.0465,000 Sprint Communications Inc., senior note, 144A, 9.00%, 11/15/18 USA USD 68,262 0.0450,000 Tesco PLC, senior bond, 6.125%, 02/24/22 GBR GBP 66,565 0.0460,000 QEP Resources Inc., senior bond, 5.375%, 10/01/22 USA USD 57,451 0.0450,000 CenturyLink Inc., senior bond, 6.75%, 12/01/23 USA USD 48,767 0.0335,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 36,066 0.0240,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 7.50%, 07/15/21 USA USD 32,361 0.0225,000 Sealed Air Corp., senior note, 144A, 6.50%, 12/01/20 USA USD 26,898 0.02

14,918,206 9.54

Government and Municipal Bonds5,105,000 Italy Treasury Bond, senior note, 0.75%, 01/15/18 ITA EUR 5,156,561 3.303,820,025 Italy Treasury Bond, senior bond, Reg S, Index Linked, 3.10%, 09/15/26 ITA EUR 4,671,508 2.99

17,000 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 4,583,891 2.93272,990,000 Asian Development Bank, 6.45%, 08/08/21 SP INR 3,915,400 2.50188,900,000 International Finance Corp., senior note, Reg S, 11.00%, 01/21/20 SP RUB 3,177,760 2.03

1,346,000 Government of Mexico, senior bond, 5.50%, 02/17/20 MEX EUR 1,532,616 0.98390,600 U.S. Treasury Note, 1.625%, 10/31/23 USA USD 356,765 0.23202,300 U.S. Treasury Note, 1.50%, 08/15/26 USA USD 176,552 0.11130,000 Government of Mexico, senior note, 4.00%, 10/02/23 MEX USD 124,085 0.08

23,695,138 15.15






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year5,952,000 Government of Spain, senior note, 0.50%, 10/31/17 ESP EUR 5,992,771 3.836,892,000 Government of New Zealand, senior bond, Reg S, 6.00%, 12/15/17 NZL NZD 4,724,136 3.024,359,000 Italy Treasury Bond, senior note, 4.75%, 06/01/17 ITA EUR 4,450,539 2.843,260,000 Government of Turkey, senior bond, 5.50%, 02/16/17 TUR EUR 3,282,413 2.103,275,000 Government of Slovakia, senior note, Reg S, 4.625%, 01/19/17 SVK EUR 3,282,041 2.10

175,000 Bunge Ltd. Finance Corp., senior note, 3.20%, 06/15/17 USA USD 167,584 0.11130,000 Santander UK PLC, senior note, 1.375%, 03/13/17 GBR USD 123,384 0.08100,000 Becton Dickinson and Co., senior note, 1.80%, 12/15/17 USA USD 95,271 0.06

85,000 Freeport-McMoRan Inc., senior note, 2.30%, 11/14/17 USA USD 80,581 0.05

22,198,720 14.19

TOTAL BONDS 60,812,064 38.88



† Floating Rates are indicated as at December 31, 2016






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGINVESTMENTS FUNDSDiversified Financial Services

89,335 UBS (Irl) ETF PLC – MSCI USA Value UCITS ETF, Class A (Dist) USA EUR 5,807,668 2.68


SHARESAerospace & Defense

1,890 Lockheed Martin Corp. USA USD 448,951 0.2125,800 Singapore Technologies Engineering Ltd. SGP SGD 54,700 0.02

503,651 0.23


Banks8,407 Commonwealth Bank of Australia AUS AUD 475,137 0.22

19,800 United Overseas Bank Ltd. SGP SGD 265,130 0.1219,801 Standard Bank Group Ltd. ZAF ZAR 207,862 0.10

3,384 Nedbank Group Ltd. ZAF ZAR 55,745 0.03417,095 Banco de Chile CHL CLP 46,174 0.02


1,078,891 0.50

Capital Markets6,470 T. Rowe Price Group Inc. USA USD 462,775 0.217,900 CI Financial Corp. CAN CAD 161,423 0.08

32,700 Singapore Exchange Ltd. SGP SGD 153,682 0.073,320 Eaton Vance Corp. USA USD 132,144 0.06

25,790 Aberdeen Asset Management PLC GBR GBP 77,687 0.04

987,711 0.46

Chemicals5,360 BASF SE DEU EUR 473,342 0.223,080 Air Products and Chemicals Inc. USA USD 420,990 0.19

894,332 0.41


540 Societe BIC SA FRA EUR 69,741 0.03

331,594 0.15

Construction & Engineering5,220 Skanska AB, B SWE SEK 117,147 0.061,460 Boskalis Westminster NLD EUR 48,166 0.02

165,313 0.08


Diversified Financial Services61,446 FirstRand Ltd. ZAF ZAR 226,006 0.1013,937 RMB Holdings Ltd. ZAF ZAR 64,017 0.03

290,023 0.13

Diversified Telecommunication Services102,030 Telstra Corp. Ltd. AUS AUD 356,859 0.16146,300 Singapore Telecommunications Ltd. SGP SGD 350,510 0.16

14,790 Telenor ASA NOR NOK 209,892 0.10490 Swisscom AG CHE CHF 208,564 0.10

32,677 Emirates Telecommunications Group Co. PJSC ARE AED 158,962 0.072,600 BCE Inc. CAN CAD 106,786 0.053,300 TELUS Corp. CAN CAD 99,848 0.05

1,491,421 0.69

Electric Utilities26,500 CLP Holdings Ltd. HKG HKD 231,408 0.11

7,075 Red Electrica Corp. SA ESP EUR 126,820 0.06

358,228 0.17

Electrical Equipment9,290 Emerson Electric Co. USA USD 492,223 0.23

22,660 ABB Ltd. CHE CHF 454,232 0.21

946,455 0.44



Health Care Equipment & Supplies6,050 Danaher Corp. USA USD 447,569 0.21



— Franklin Diversified Conservative Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Hotels, Restaurants & Leisure4,130 McDonald’s Corp. USA USD 477,765 0.22

25,850 Compass Group PLC GBR GBP 454,256 0.2113,920 William Hill PLC GBR GBP 47,293 0.02


1,003,849 0.46


216,137 0.10

Household Products4,090 Kimberly-Clark Corp. USA USD 443,595 0.20

Insurance21,170 AXA SA FRA EUR 507,762 0.23

3,040 Allianz SE DEU EUR 477,280 0.221,780 Zurich Insurance Group AG CHE CHF 465,781 0.215,020 Swiss Re AG CHE CHF 452,079 0.21

94,180 Legal & General Group PLC GBR GBP 273,004 0.1385,160 Old Mutual PLC GBR GBP 206,678 0.09


28,792 Sanlam Ltd. ZAF ZAR 125,280 0.064,500 Great-West Lifeco Inc. CAN CAD 112,015 0.052,610 SCOR SE FRA EUR 85,686 0.042,390 Tryg A/S DNK DKK 41,060 0.02


3,128,670 1.44

IT Services7,670 Paychex Inc. USA USD 443,784 0.20

Machinery13,810 Atlas Copco AB, A SWE SEK 399,832 0.18

7,680 Kone OYJ, B FIN EUR 326,938 0.158,040 Atlas Copco AB SWE SEK 208,535 0.102,380 Dover Corp. USA USD 169,486 0.08

1,104,791 0.51


Multiline Retail4,360 Next PLC GBR GBP 254,353 0.123,480 Nordstrom Inc. USA USD 158,522 0.07

28,840 Marks & Spencer Group PLC GBR GBP 118,174 0.05

531,049 0.24

Multi-Utilities467 Qatar Electricity & Water Co. QSC QAT QAR 27,668 0.01


Personal Products11,020 Unilever NV, IDR GBR EUR 431,047 0.20

Pharmaceuticals6,390 Eli Lilly & Co. USA USD 446,668 0.202,010 Roche Holding AG CHE CHF 436,304 0.203,900 Eisai Co. Ltd. JPN JPY 212,698 0.10

1,095,670 0.50



413,429 0.19


Semiconductors & Semiconductor Equipment13,430 Intel Corp. USA USD 462,940 0.21


918,162 0.42







Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Specialty Retail16,530 Hennes & Mauritz AB, B SWE SEK 437,020 0.20

5,540 Best Buy Co. Inc. USA USD 224,664 0.1034,600 Kingfisher PLC GBR GBP 141,898 0.07

8,914 Truworths International Ltd. ZAF ZAR 49,128 0.02

852,710 0.39

Technology Hardware, Storage & Peripherals15,900 CANON Inc. JPN JPY 425,950 0.20

Textiles, Apparel & Luxury Goods2,570 LVMH Moet Hennessy Louis Vuitton SE FRA EUR 466,198 0.215,570 Coach Inc. USA USD 185,384 0.091,650 Hugo Boss AG DEU EUR 95,915 0.04


788,898 0.36

Tobacco7,130 Altria Group Inc. USA USD 458,212 0.218,210 British American Tobacco PLC GBR GBP 444,207 0.214,840 Philip Morris International Inc. USA USD 420,844 0.191,923 KT&G Corp. KOR KRW 152,898 0.073,920 Swedish Match AB SWE SEK 118,524 0.065,200 British American Tobacco Malaysia Bhd. MYS MYR 49,134 0.02

1,643,819 0.76


Wireless Telecommunication Services18,300 NTT DoCoMo Inc. JPN JPY 396,212 0.18

6,200 Rogers Communications Inc., B CAN CAD 227,263 0.1035,000 Taiwan Mobile Co. Ltd. TWN TWD 106,593 0.0518,900 StarHub Ltd. SGP SGD 34,860 0.02

764,928 0.35

TOTAL SHARES 22,536,105 10.37



1,308,291 FTIF Franklin Euro Short Duration Bond Fund, Class Y (Mdis) EUR LUX EUR 13,174,487 6.06537,966 FTSIIF Franklin Emerging Market Corporate Debt Fund, Class Y (Mdis) EUR LUX EUR 5,723,958 2.64524,195 FTIF Templeton Emerging Markets Bond Fund, Class Y (Mdis) USD LUX USD 4,767,678 2.19484,129 FTIF Franklin European Small-Mid Cap Growth Fund, Class Y (Mdis) EUR LUX EUR 4,366,843 2.01488,037 FTIF Templeton Emerging Markets Smaller Companies Fund, Class Y (Mdis) USD LUX USD 4,257,916 1.96

32,290,882 14.86


WARRANTSBanks




1,030,000 Merrill Lynch & Co. Inc., senior note, 6.875%, 04/25/18 USA USD 1,040,668 0.48665,000 The Goldman Sachs Group Inc., senior note, 5.75%, 01/24/22 USA USD 710,627 0.33570,000 Verizon Communications Inc., senior bond, 6.55%, 09/15/43 USA USD 677,792 0.31650,000 Siemens Financieringsmaatschappij NV, senior note, 144A, 2.00%, 09/15/23 DEU USD 581,958 0.27570,000 The Coca-Cola Co., senior note, 1.375%, 05/30/19 USA USD 538,173 0.25555,000 CVS Health Corp., senior note, 2.25%, 12/05/18 USA USD 532,223 0.25375,000 Citigroup Inc., senior bond, 8.125%, 07/15/39 USA USD 530,410 0.24540,000 JPMorgan Chase & Co., senior note, 3.90%, 07/15/25 USA USD 527,602 0.24495,000 Morgan Stanley, senior note, 5.50%, 07/28/21 USA USD 521,391 0.24500,000 Kraft Heinz Foods Co., senior bond, 5.20%, 07/15/45 USA USD 497,515 0.23500,000 Alibaba Group Holding Ltd., senior note, 2.50%, 11/28/19 CHN USD 477,312 0.22520,000 Danone SA, senior note, 144A, 2.589%, 11/02/23 FRA USD 474,489 0.22360,000 Wal-Mart Stores Inc., senior bond, 6.20%, 04/15/38 USA USD 451,160 0.21445,000 Anheuser-Busch InBev Finance Inc., senior bond, 4.70%, 02/01/36 BEL USD 446,105 0.21350,000 Bupa Finance PLC, sub. note, Reg S, 5.00%, 04/25/23 GBR GBP 445,172 0.21400,000 Allianz SE, sub. note, Reg S, 4.75% to 10/24/23, FRN thereafter, Perpetual DEU EUR 443,400 0.20490,000 Marriott International Inc., senior bond, 3.125%, 06/15/26 USA USD 441,030 0.20455,000 ING Bank NV, sub. note, Reg S, 4.125% to 11/21/13, FRN thereafter, 11/21/23 NLD USD 439,082 0.20445,000 American Tower Corp., senior note, 3.40%, 02/15/19 USA USD 432,269 0.20400,000 Compass Group PLC, senior note, Reg S, 1.875%, 01/27/23 GBR EUR 431,732 0.20410,000 Liberty Mutual Group Inc., senior note, 144A, 4.95%, 05/01/22 USA USD 425,235 0.20384,000 Ford Motor Credit Co. LLC, senior note, 8.125%, 01/15/20 USA USD 420,894 0.19400,000 Rabobank Nederland, sub. bond, Reg S, 2.50% to 05/26/21, FRN thereafter, 05/26/26 NLD EUR 415,798 0.19432,000 Comcast Corp., senior bond, 3.375%, 08/15/25 USA USD 412,950 0.19300,000 Telefonica Emisiones S.A.U., senior bond, Reg S, 5.289%, 12/09/22 ESP GBP 411,586 0.19420,000 Walgreens Boots Alliance Inc., senior note, 3.80%, 11/18/24 USA USD 406,439 0.19






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)400,000 BMW U.S. Capital LLC, senior note, Reg S, 0.625%, 04/20/22 DEU EUR 405,650 0.19430,000 Dollar General Corp., senior bond, 3.25%, 04/15/23 USA USD 403,415 0.19400,000 General Electric Co., junior sub. bond, 5.00% to 01/21/21, FRN thereafter, Perpetual USA USD 394,963 0.18350,000 AXA SA, sub. bond, Reg S, 5.25% to 04/16/20, FRN thereafter, 04/16/40 FRA EUR 390,301 0.18370,000 Telstra Corp. Ltd., senior note, 144A, 4.80%, 10/12/21 AUS USD 383,479 0.18400,000 Daimler Finance North America LLC, senior note, 144A, 2.375%, 08/01/18 DEU USD 383,058 0.18375,000 Baxalta Inc., senior bond, 5.25%, 06/23/45 USA USD 380,570 0.18370,000 Gilead Sciences Inc., senior note, 4.40%, 12/01/21 USA USD 378,211 0.17350,000 Standard Chartered PLC, senior note, Reg S, 4.125%, 01/18/19 GBR EUR 378,184 0.17400,000 ATF Netherlands BV, senior note, Reg S, 1.50%, 07/15/24 DEU EUR 376,134 0.17400,000 Sinopec Capital 2013 Ltd., senior note, 144A, 3.125%, 04/24/23 CHN USD 371,334 0.17350,000 Danske Bank AS, sub. note, Reg S, FRN, 3.875%, 10/04/23 † DNK EUR 371,052 0.17350,000 Skandinaviska Enskilda Banken AB, sub. bond, Reg S, 2.50% to 05/28/21, FRN

thereafter, 05/28/26 SWE EUR 369,155 0.17350,000 Anheuser-Busch InBev SA/NV, senior note, Reg S, 1.50%, 03/17/25 BEL EUR 364,705 0.17350,000 Yorkshire Building Society, senior note, Reg S, 2.125%, 03/18/19 GBR EUR 364,488 0.17375,000 AT&T Inc., senior note, 2.45%, 06/30/20 USA USD 353,955 0.16350,000 Commonwealth Bank of Australia, sub. bond, Reg S, 2.00% to 04/21/22, FRN

thereafter, 04/22/27 AUS EUR 353,070 0.16300,000 Intesa Sanpaolo SpA, senior note, Reg S, 4.00%, 10/30/23 ITA EUR 353,063 0.16350,000 Chorus Ltd., senior note, Reg S, 1.125%, 10/18/23 NZL EUR 348,845 0.16300,000 WPP Finance 2013, senior note, Reg S, 3.00%, 11/20/23 GBR EUR 346,635 0.16300,000 National Grid Gas Finance PLC, senior bond, Reg S, 2.125%, 09/22/28 GBR GBP 344,171 0.16300,000 BHP Billiton Finance Ltd., sub. bond, Reg S, 5.625% to 10/22/24, FRN thereafter,

10/22/79 AUS EUR 342,776 0.16300,000 21st Century Fox America Inc., senior bond, 6.40%, 12/15/35 USA USD 341,114 0.16355,000 Glencore Funding LLC, senior note, 144A, 4.125%, 05/30/23 CHE USD 340,002 0.16300,000 Bacardi Ltd., senior note, Reg S, 2.75%, 07/03/23 BMU EUR 334,049 0.15300,000 Carlsberg Breweries A/S, senior note, Reg S, 2.50%, 05/28/24 DNK EUR 330,672 0.15350,000 HSBC USA Inc., senior note, 2.35%, 03/05/20 USA USD 329,971 0.15300,000 Kerry Group Financial Services, senior note, Reg S, 2.375%, 09/10/25 IRL EUR 328,289 0.15340,000 Simon Property Group LP, senior bond, 3.375%, 10/01/24 USA USD 326,500 0.15300,000 Klepierre, senior note, Reg S, 1.75%, 11/06/24 FRA EUR 318,701 0.15280,000 Reynolds American Inc., senior bond, 5.85%, 08/15/45 USA USD 315,697 0.15330,000 ANZ New Zealand International Ltd. of London, senior note, 144A, 2.75%, 02/03/21 NZL USD 313,732 0.14330,000 Anthem Inc., senior bond, 3.30%, 01/15/23 USA USD 313,198 0.14315,000 Charter Communications Operating LLC/Charter Communications Operating Capital

Corp., senior secured note, first lien, 4.464%, 07/23/22 USA USD 312,908 0.14310,000 LYB International Finance BV, senior note, 4.00%, 07/15/23 USA USD 308,327 0.14340,000 Realty Income Corp., senior bond, 3.00%, 01/15/27 USA USD 304,402 0.14300,000 Iberdrola Finanzas, senior note, Reg S, 1.00%, 03/07/24 ESP EUR 303,560 0.14250,000 APT Pipelines Ltd., senior bond, Reg S, 3.50%, 03/22/30 AUS GBP 300,208 0.14290,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 5.00%, 10/01/21 NLD USD 290,092 0.13310,000 Woodside Finance Ltd., senior note, 144A, 3.65%, 03/05/25 AUS USD 287,946 0.13300,000 Prudential Financial Inc., junior sub. bond, 5.20% to 03/15/24, FRN thereafter,

03/15/44 USA USD 282,100 0.13240,000 Western Digital Corp., senior secured note, 144A, 7.375%, 04/01/23 USA USD 251,473 0.12260,000 Wells Fargo & Co., senior note, 3.45%, 02/13/23 USA USD 247,946 0.11260,000 Hyundai Capital America, senior note, 144A, 2.00%, 03/19/18 USA USD 247,093 0.11220,000 Kinder Morgan Energy Partners LP, senior bond, 6.50%, 09/01/39 USA USD 231,432 0.11210,000 Enterprise Products Operating LLC, senior bond, 3.90%, 02/15/24 USA USD 205,927 0.10150,000 Tesco PLC, senior bond, 6.125%, 02/24/22 GBR GBP 199,696 0.09200,000 WPX Energy Inc., senior note, 6.00%, 01/15/22 USA USD 195,780 0.09200,000 Koninklijke KPN NV, senior bond, Reg S, 1.125%, 09/11/28 NLD EUR 189,083 0.09180,000 CIT Group Inc., secured note, 144A, 5.50%, 02/15/19 USA USD 180,907 0.08165,000 HCA Inc., senior secured bond, first lien, 5.875%, 03/15/22 USA USD 169,359 0.08170,000 PSEG Power LLC, senior note, 3.00%, 06/15/21 USA USD 162,086 0.07165,000 Navient Corp., senior note, 7.25%, 09/25/23 USA USD 161,519 0.07140,000 MetLife Inc., junior sub. note, 6.40% to 12/15/36, FRN thereafter, 12/15/66 USA USD 144,032 0.07150,000 NOVA Chemicals Corp., senior bond, 144A, 5.00%, 05/01/25 CAN USD 140,019 0.06175,000 Weatherford International Ltd., senior bond, 7.00%, 03/15/38 USA USD 138,876 0.06130,000 Sprint Communications Inc., senior note, 144A, 9.00%, 11/15/18 USA USD 136,523 0.06130,000 ArcelorMittal, senior bond, 7.75%, 03/01/41 FRA USD 131,841 0.06120,000 QEP Resources Inc., senior bond, 5.375%, 10/01/22 USA USD 114,902 0.05100,000 CenturyLink Inc., senior bond, 6.75%, 12/01/23 USA USD 97,534 0.05

65,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 66,980 0.0375,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 7.50%, 07/15/21 USA USD 60,676 0.0355,000 Sealed Air Corp., senior note, 144A, 6.50%, 12/01/20 USA USD 59,176 0.03

30,804,554 14.18

Government and Municipal Bonds9,078,000 Italy Treasury Bond, senior note, 0.75%, 01/15/18 ITA EUR 9,169,688 4.225,327,339 Italy Treasury Bond, senior bond, Reg S, Index Linked, 3.10%, 09/15/26 ITA EUR 6,514,804 3.00

22,000 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 5,932,094 2.73383,480,000 Asian Development Bank, 6.45%, 08/08/21 SP INR 5,500,120 2.53

5,000,000 U.S. Treasury Note, 1.00%, 11/30/18 USA USD 4,736,305 2.18266,000,000 International Finance Corp., senior note, Reg S, 11.00%, 01/21/20 SP RUB 4,474,770 2.06

4,432,000 Italy Treasury Bond, 0.30%, 10/15/18 ITA EUR 4,467,788 2.064,387,000 Government of Spain, senior note, 0.25%, 01/31/19 ESP EUR 4,428,018 2.042,934,000 Government of Spain, senior note, 0.25%, 04/30/18 ESP EUR 2,955,565 1.362,508,000 Italy Treasury Bond, 0.25%, 05/15/18 ITA EUR 2,523,111 1.16






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)1,873,000 Government of Mexico, senior bond, 5.50%, 02/17/20 MEX EUR 2,132,682 0.981,078,900 U.S. Treasury Note, 1.625%, 10/31/23 USA USD 985,443 0.45

404,700 U.S. Treasury Note, 1.50%, 08/15/26 USA USD 353,191 0.16260,000 Government of Mexico, senior note, 4.00%, 10/02/23 MEX USD 248,170 0.11

54,421,749 25.04

Securities Maturing Within One Year18,135,000 Government of New Zealand, senior bond, Reg S, 6.00%, 12/15/17 NZL NZD 12,430,674 5.72

7,720,000 Government of Spain, senior note, 0.50%, 10/31/17 ESP EUR 7,772,882 3.586,098,000 Italy Treasury Bond, senior note, 4.75%, 06/01/17 ITA EUR 6,226,058 2.874,618,000 Government of Spain, senior bond, Reg S, 3.80%, 01/31/17 ESP EUR 4,632,778 2.134,560,000 Government of Turkey, senior bond, 5.50%, 02/16/17 TUR EUR 4,591,350 2.114,581,000 Government of Slovakia, senior note, Reg S, 4.625%, 01/19/17 SVK EUR 4,590,849 2.113,798,000 Government of Spain, senior note, 2.10%, 04/30/17 ESP EUR 3,829,808 1.762,467,000 Italy Treasury Bond, senior note, 1.15%, 05/15/17 ITA EUR 2,481,062 1.14

380,000 Bunge Ltd. Finance Corp., senior note, 3.20%, 06/15/17 USA USD 363,896 0.17260,000 Santander UK PLC, senior note, 1.375%, 03/13/17 GBR USD 246,768 0.11200,000 Becton Dickinson and Co., senior note, 1.80%, 12/15/17 USA USD 190,542 0.09170,000 Freeport-McMoRan Inc., senior note, 2.30%, 11/14/17 USA USD 161,162 0.07

47,517,829 21.86

TOTAL BONDS 132,744,132 61.08









Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


23,744 iShares IV PLC - iShares USD Short Duration Corporate Bond UCITS ETF, Class USD(Dist) USA EUR 2,261,854 3.01



3,909 Lockheed Martin Corp. USA USD 928,545 1.2453,307 Singapore Technologies Engineering Ltd. SGP SGD 113,019 0.15

1,041,564 1.39


Banks17,325 Commonwealth Bank of Australia AUS AUD 979,155 1.3040,940 United Overseas Bank Ltd. SGP SGD 548,203 0.7340,809 Standard Bank Group Ltd. ZAF ZAR 428,394 0.57

6,975 Nedbank Group Ltd. ZAF ZAR 114,899 0.15859,588 Banco de Chile CHL CLP 95,160 0.13


2,225,254 2.96

Capital Markets13,339 T. Rowe Price Group Inc. USA USD 954,090 1.2716,327 CI Financial Corp. CAN CAD 333,614 0.4567,444 Singapore Exchange Ltd. SGP SGD 316,971 0.42

6,854 Eaton Vance Corp. USA USD 272,805 0.3653,159 Aberdeen Asset Management PLC GBR GBP 160,131 0.21

2,037,611 2.71

Chemicals11,050 BASF SE DEU EUR 975,826 1.30

6,356 Air Products and Chemicals Inc. USA USD 868,770 1.15

1,844,596 2.45


1,129 Societe BIC SA FRA EUR 145,810 0.19

685,470 0.91

Construction & Engineering10,760 Skanska AB, B SWE SEK 241,476 0.32

3,019 Boskalis Westminster NLD EUR 99,597 0.13

341,073 0.45


Diversified Financial Services126,634 FirstRand Ltd. ZAF ZAR 465,775 0.62

28,723 RMB Holdings Ltd. ZAF ZAR 131,934 0.18

597,709 0.80

Diversified Telecommunication Services210,273 Telstra Corp. Ltd. AUS AUD 735,448 0.98301,643 Singapore Telecommunications Ltd. SGP SGD 722,685 0.96

1,024 Swisscom AG CHE CHF 435,856 0.5830,487 Telenor ASA NOR NOK 432,656 0.5767,345 Emirates Telecommunications Group Co. PJSC ARE AED 327,609 0.44

5,530 BCE Inc. CAN CAD 227,127 0.306,960 TELUS Corp. CAN CAD 210,589 0.28

3,091,970 4.11

Electric Utilities55,285 CLP Holdings Ltd. HKG HKD 482,770 0.6414,580 Red Electrica Corp. SA ESP EUR 261,346 0.35

744,116 0.99

Electrical Equipment19,148 Emerson Electric Co. USA USD 1,014,542 1.3546,713 ABB Ltd. CHE CHF 936,387 1.25

1,950,929 2.60



Health Care Equipment & Supplies12,486 Danaher Corp. USA USD 923,693 1.23



— Franklin Diversified Dynamic Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Hotels, Restaurants & Leisure8,525 McDonald’s Corp. USA USD 986,184 1.31

53,291 Compass Group PLC GBR GBP 936,471 1.2428,699 William Hill PLC GBR GBP 97,504 0.13


2,070,732 2.75


445,926 0.59

Household Products8,438 Kimberly-Clark Corp. USA USD 915,173 1.22


6,276 Allianz SE DEU EUR 985,332 1.313,684 Zurich Insurance Group AG CHE CHF 964,009 1.28

10,354 Swiss Re AG CHE CHF 932,436 1.24194,114 Legal & General Group PLC GBR GBP 562,687 0.75175,520 Old Mutual PLC GBR GBP 425,976 0.57


59,337 Sanlam Ltd. ZAF ZAR 258,188 0.349,449 Great-West Lifeco Inc. CAN CAD 235,206 0.315,379 SCOR SE FRA EUR 176,593 0.244,940 Tryg A/S DNK DKK 84,869 0.11


6,460,461 8.59

IT Services15,817 Paychex Inc. USA USD 915,167 1.22

Machinery28,470 Atlas Copco AB, A SWE SEK 824,275 1.1015,829 Kone OYJ, B FIN EUR 673,840 0.9016,587 Atlas Copco AB SWE SEK 430,220 0.57

4,921 Dover Corp. USA USD 350,438 0.46

2,278,773 3.03


Multiline Retail8,998 Next PLC GBR GBP 524,924 0.707,176 Nordstrom Inc. USA USD 326,883 0.44

59,438 Marks & Spencer Group PLC GBR GBP 243,552 0.32

1,095,359 1.46

Multi-Utilities962 Qatar Electricity & Water Co. QSC QAT QAR 56,995 0.08



Pharmaceuticals13,189 Eli Lilly & Co. USA USD 921,926 1.23

4,154 Roche Holding AG CHE CHF 901,695 1.208,212 Eisai Co. Ltd. JPN JPY 447,866 0.59

2,271,487 3.02



874,680 1.16


Semiconductors & Semiconductor Equipment27,693 Intel Corp. USA USD 954,595 1.27


1,893,815 2.52







Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Specialty Retail34,075 Hennes & Mauritz AB, B SWE SEK 900,874 1.2011,431 Best Buy Co. Inc. USA USD 463,563 0.6271,327 Kingfisher PLC GBR GBP 292,518 0.3918,371 Truworths International Ltd. ZAF ZAR 101,248 0.13

1,758,203 2.34

Technology Hardware, Storage & Peripherals32,868 CANON Inc. JPN JPY 880,510 1.17

Textiles, Apparel & Luxury Goods5,303 LVMH Moet Hennessy Louis Vuitton SE FRA EUR 961,964 1.28

11,494 Coach Inc. USA USD 382,551 0.513,418 Hugo Boss AG DEU EUR 198,688 0.27


1,628,806 2.17

Tobacco14,714 Altria Group Inc. USA USD 945,601 1.2616,921 British American Tobacco PLC GBR GBP 915,522 1.22

9,975 Philip Morris International Inc. USA USD 867,338 1.153,964 KT&G Corp. KOR KRW 315,179 0.428,080 Swedish Match AB SWE SEK 244,304 0.33

10,720 British American Tobacco Malaysia Bhd. MYS MYR 101,291 0.13

3,389,235 4.51


Wireless Telecommunication Services37,792 NTT DoCoMo Inc. JPN JPY 818,233 1.0912,855 Rogers Communications Inc., B CAN CAD 471,203 0.6372,734 Taiwan Mobile Co. Ltd. TWN TWD 221,512 0.2939,042 StarHub Ltd. SGP SGD 72,012 0.10

1,582,960 2.11

TOTAL SHARES 46,563,817 61.95



365,657 FTIF Franklin European Corporate Bond Fund, Class Y (Mdis) EUR LUX EUR 3,780,893 5.03272,590 FTIF Templeton Emerging Markets Smaller Companies Fund, Class Y (Mdis) USD LUX USD 2,378,232 3.16182,555 FTIF Franklin High Yield Fund, Class Y (Mdis) USD LUX USD 1,634,355 2.17177,756 FTIF Templeton Emerging Markets Bond Fund, Class Y (Mdis) USD LUX USD 1,616,732 2.15148,092 FTSIIF Franklin Emerging Market Corporate Debt Fund, Class Y (Mdis) EUR LUX EUR 1,575,699 2.10

10,985,911 14.61


WARRANTSBanks

539,918 Societe Generale SA, wts., 12/22/17 FRA EUR 518,425 0.69


BONDSGovernment and Municipal Bonds

1,809,205 Italy Treasury Bond, senior bond, Reg S, Index Linked, 3.10%, 09/15/26 ITA EUR 2,212,476 2.94138,740,000 Asian Development Bank, 6.45%, 08/08/21 SP INR 1,989,900 2.65

7,000 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 1,887,484 2.5194,000,000 International Finance Corp., senior note, Reg S, 11.00%, 01/21/20 SP RUB 1,581,310 2.10

670,000 Government of Mexico, senior bond, 5.50%, 02/17/20 MEX EUR 762,892 1.02

8,434,062 11.22

TOTAL BONDS 8,434,062 11.22








Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETBONDSGovernment and Municipal Bonds

11,600,000 Government of Belgium, senior bond, Reg S, 1.00%, 06/22/26 BEL EUR 12,104,716 11.3310,600,000 Government of Finland, Reg S, 0.375%, 09/15/20 FIN EUR 10,962,467 10.26

8,700,000 Government of Austria, senior bond, Reg S, 0.75%, 10/20/26 AUT EUR 8,976,442 8.407,800,000 Italy Treasury Bond, 2.50%, 12/01/24 ITA EUR 8,401,770 7.878,000,000 Government of the Netherlands, 0.25%, 01/15/20 NLD EUR 8,236,680 7.716,800,000 Government of Germany, Reg S, 3.75%, 01/04/19 DEU EUR 7,427,912 6.955,800,000 Government of the Netherlands, Reg S, 4.00%, 07/15/18 NLD EUR 6,225,488 5.834,800,000 Italy Treasury Bond, senior bond, 5.50%, 09/01/22 ITA EUR 6,025,200 5.643,800,000 Government of Lithuania, senior note, Reg S, 3.375%, 01/22/24 LTU EUR 4,576,625 4.294,300,000 Government of Ireland, Reg S, 0.80%, 03/15/22 IRL EUR 4,509,087 4.224,300,000 Romania, senior note, Reg S, 2.75%, 10/29/25 ROU EUR 4,498,983 4.214,019,197 Italy Treasury Bond, senior bond, Reg S, Index Linked, 1.25%, 09/15/32 ITA EUR 4,185,290 3.923,800,000 Government of the Netherlands, Reg S, 0.50%, 07/15/26 NLD EUR 3,853,314 3.613,800,000 Government of Poland, Reg S, 0.875%, 05/10/27 POL EUR 3,667,000 3.433,800,000 Italy Treasury Bond, senior bond, 1.25%, 12/01/26 ITA EUR 3,609,905 3.382,500,000 Italy Treasury Bond, senior bond, Reg S, 4.75%, 09/01/44 ITA EUR 3,379,750 3.171,700,000 Government of Germany, Reg S, 2.50%, 08/15/46 DEU EUR 2,382,219 2.23

103,022,848 96.45

TOTAL BONDS 103,022,848 96.45




— Franklin Euro Government Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


100,000 iShares PLC - iShares Euro High Yield Corporate Bond UCITS ETF, Class EUR (Dist) IRL EUR 10,640,000 1.44



TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESAir Freight & Logistics

777 CEVA Holdings LLC, cvt. pfd., A-2 USA USD 166,111 0.02359 CEVA Holdings LLC USA USD 34,105 0.01

16 CEVA Holdings LLC, cvt. pfd., A-1 USA USD 4,942 0.00

205,158 0.03

TOTAL SHARES 205,158 0.03


12,000,000 SFR Group SA, senior secured note, first lien, Reg S, 5.375%, 05/15/22 FRA EUR 12,591,720 1.709,000,000 Jaguar Land Rover Automotive PLC, senior note, Reg S, 5.00%, 02/15/22 GBR GBP 11,458,594 1.55

10,400,000 CNH Industrial Finance Europe SA, senior note, Reg S, 6.25%, 03/09/18 GBR EUR 11,172,044 1.519,000,000 Enel SpA, sub. bond, Reg S, 6.625% to 09/15/21, FRN thereafter, 09/15/76 ITA GBP 11,104,195 1.509,900,000 Sealed Air Corp., senior note, Reg S, 4.50%, 09/15/23 USA EUR 10,817,581 1.469,900,000 WMG Acquisition Corp., senior secured note, first lien, Reg S, 6.25%, 01/15/21 USA EUR 10,234,125 1.399,000,000 Belden Inc., senior sub. bond, Reg S, 5.50%, 04/15/23 USA EUR 9,666,810 1.319,000,000 Telefonica Europe BV, junior sub. note, Reg S, 5.875% to 03/31/24, FRN thereafter,

Perpetual ESP EUR 9,491,670 1.299,000,000 Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, secured bond, Reg S,

4.00%, 01/15/25 DEU EUR 9,410,535 1.278,450,000 Play Finance 2 SA, secured note, first lien, Reg S, 5.25%, 02/01/19 POL EUR 8,621,028 1.178,000,000 MPT Operating Partnership LP/MPT Finance Corp., senior note, 4.00%, 08/19/22 USA EUR 8,428,000 1.148,000,000 Pfleiderer GmbH, secured note, Reg S, 7.875%, 08/01/19 DEU EUR 8,389,120 1.148,000,000 Anglo American Capital PLC, senior note, Reg S, 2.875%, 11/20/20 GBR EUR 8,388,000 1.148,200,000 Barry Callebaut Services SA, senior note, 144A, 5.50%, 06/15/23 BEL USD 8,280,270 1.127,500,000 UPC Holding BV, senior note, Reg S, 6.75%, 03/15/23 NLD EUR 8,198,325 1.117,300,000 Darling Global Finance BV, senior note, Reg S, 4.75%, 05/30/22 USA EUR 7,752,782 1.057,000,000 Fiat Chrysler Finance Europe, senior note, Reg S, 4.75%, 07/15/22 GBR EUR 7,732,970 1.057,100,000 Lincoln Finance Ltd., senior secured note, Reg S, 6.875%, 04/15/21 NLD EUR 7,728,350 1.057,000,000 International Game Technology PLC, first lien, Reg S, 4.75%, 02/15/23 USA EUR 7,656,740 1.047,000,000 Safari Holding Verwaltungs GmbH, secured note, Reg S, 8.25%, 02/15/21 DEU EUR 7,378,420 1.007,000,000 Tereos Finance Groupe I SA, senior note, Reg S, 4.125%, 06/16/23 FRA EUR 7,197,750 0.977,000,000 Adient Global Holdings Ltd., senior note, Reg S, 3.50%, 08/15/24 USA EUR 7,129,360 0.976,500,000 PortAventura Entertainment Barcelona BV, secured note, Reg S, 7.25%, 12/01/20 ESP EUR 6,783,627 0.926,500,000 WMG Acquisition Corp., senior secured note, Reg S, 4.125%, 11/01/24 USA EUR 6,742,255 0.916,100,000 Fiat Chrysler Finance Europe, senior note, Reg S, 4.75%, 03/22/21 GBR EUR 6,730,953 0.916,900,000 Citigroup Inc., junior sub. bond, M, 6.30% to 05/15/24, FRN thereafter, Perpetual USA USD 6,510,146 0.885,000,000 Koninklijke KPN NV, senior sub. bond, Reg S, 6.875% to 03/14/20, FRN thereafter,

03/14/73 NLD GBP 6,273,339 0.856,000,000 Almirall SA, senior note, Reg S, 4.625%, 04/01/21 ESP EUR 6,222,270 0.846,000,000 NH Hotel Group SA, first lien, Reg S, 3.75%, 10/01/23 ESP EUR 6,211,680 0.846,000,000 Sabine Pass Liquefaction LLC, first lien, 5.625%, 02/01/21 USA USD 6,130,014 0.836,000,000 Banco Popolare SC, senior note, Reg S, 2.625%, 09/21/18 ITA EUR 6,060,210 0.826,050,000 Alliance Data Systems Corp., senior note, Reg S, 5.25%, 11/15/23 USA EUR 6,055,596 0.825,900,000 TA Manufacturing Ltd., senior note, Reg S, 3.625%, 04/15/23 USA EUR 6,010,625 0.815,500,000 Altice Luxembourg SA, senior note, Reg S, 7.25%, 05/15/22 FRA EUR 5,894,652 0.805,000,000 Cabot Financial Luxembourg SA, senior secured note, first lien, Reg S, 7.50%, 10/01/23 GBR GBP 5,892,293 0.805,000,000 UniCredit SpA, sub. note, Reg S, 6.95%, 10/31/22 ITA EUR 5,759,775 0.785,000,000 Fiat Chrysler Finance Europe, senior note, Reg S, 6.75%, 10/14/19 GBR EUR 5,757,675 0.785,000,000 Fresenius Finance BV, senior note, Reg S, 3.00%, 02/01/21 DEU EUR 5,484,725 0.744,529,000 Intesa Sanpaolo SpA, sub. note, Reg S, 6.625%, 09/13/23 ITA EUR 5,377,780 0.735,000,000 HP Pelzer Holding GmbH, secured note, Reg S, 7.50%, 07/15/21 DEU EUR 5,364,775 0.735,000,000 Worldpay Finance PLC, senior note, Reg S, 3.75%, 11/15/22 GBR EUR 5,362,125 0.735,000,000 UBS Group AG, junior sub. bond, 5.75% to 02/19/22, FRN thereafter, Perpetual CHE EUR 5,271,900 0.715,000,000 Kommunal Landspensjonskasse Gjensidig Forsikringsselskap, senior sub. bond, Reg S,

4.25% to 06/10/25, FRN thereafter, 06/10/45 NOR EUR 5,230,850 0.715,000,000 Matterhorn Telecom SA, senior secured note, Reg S, 3.875%, 05/01/22 CHE EUR 5,212,425 0.715,000,000 Vonovia Finance BV, sub. note, Reg S, 4.00% to 12/17/21, FRN thereafter, Perpetual DEU EUR 5,179,700 0.705,000,000 Wind Acquisition Finance SA, senior secured note, Reg S, 4.00%, 07/15/20 ITA EUR 5,105,025 0.695,000,000 Casino Guichard Perrachon SA, senior bond, Reg S, 2.33%, 02/07/25 FRA EUR 5,001,625 0.685,000,000 Fresenius Medical Care U.S. Finance II Inc., senior note, 144A, 4.125%, 10/15/20 DEU USD 4,942,026 0.675,000,000 Crown European Holdings SA, senior note, Reg S, 2.625%, 09/30/24 USA EUR 4,914,300 0.674,700,000 Schumann SpA, senior secured note, first lien, Reg S, 7.00%, 07/31/23 ITA EUR 4,902,922 0.665,000,000 Fresenius Medical Care U.S. Finance II Inc., senior note, 144A, 4.75%, 10/15/24 DEU USD 4,823,228 0.654,500,000 DEA Finance SA, senior note, Reg S, 7.50%, 10/15/22 DEU EUR 4,820,625 0.655,000,000 Allison Transmission Inc., senior note, 144A, 5.00%, 10/01/24 USA USD 4,811,348 0.655,000,000 Wind Acquisition Finance SA, senior secured note, first lien, 144A, 4.75%, 07/15/20 ITA USD 4,811,348 0.654,455,000 Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, senior secured bond, first

lien, Reg S, 5.75%, 01/15/23 DEU EUR 4,785,539 0.654,800,000 Intesa Sanpaolo Vita SpA, sub. note, Reg S, 4.75% to 12/17/24, FRN thereafter,

Perpetual ITA EUR 4,718,400 0.644,000,000 Telecom Italia SpA, senior bond, Reg S, 5.25%, 02/10/22 ITA EUR 4,649,680 0.63


— Franklin Euro High Yield Fund —




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Corporate Bonds (continued)4,500,000 PSPC Escrow Corp., senior note, Reg S, 6.00%, 02/01/23 USA EUR 4,550,872 0.624,000,000 AXA SA, sub. bond, Reg S, 5.25% to 04/16/20, FRN thereafter, 04/16/40 FRA EUR 4,460,580 0.604,000,000 Solvay Finance, junior sub. bond, Reg S, 5.869% to 12/29/49, FRN thereafter,

Perpetual BEL EUR 4,403,640 0.604,100,000 Ceramtec Group GmbH, senior note, Reg S, 8.25%, 08/15/21 DEU EUR 4,389,788 0.594,000,000 Auris Luxembourg II SA, senior note, Reg S, 8.00%, 01/15/23 DEU EUR 4,376,380 0.593,500,000 Moy Park Bondco PLC, senior note, Reg S, 6.25%, 05/29/21 GBR GBP 4,311,537 0.584,000,000 Trinseo Materials Operating SCA/Trinseo Materials Finance Inc., senior note, Reg S,

6.375%, 05/01/22 USA EUR 4,299,100 0.584,000,000 Telecom Italia SpA, senior note, Reg S, 3.625%, 01/19/24 ITA EUR 4,275,260 0.584,000,000 Schaeffler Finance BV, senior secured bond, Reg S, 3.25%, 05/15/25 DEU EUR 4,268,040 0.584,000,000 LKQ Italia Bondco SpA, senior note, Reg S, 3.875%, 04/01/24 ITA EUR 4,265,000 0.584,000,000 Schoeller Allibert Group BV, senior note, first lien, Reg S, 8.00%, 10/01/21 NLD EUR 4,197,940 0.574,000,000 Altice Luxembourg SA, senior bond, Reg S, 6.25%, 02/15/25 FRA EUR 4,197,680 0.574,000,000 WEPA Hygieneprodukte GmbH, senior secured note, first lien, Reg S, 3.75%, 05/15/24 DEU EUR 4,186,660 0.574,000,000 Ineos Finance PLC, first lien, senior secured note, Reg S, 4.00%, 05/01/23 GBR EUR 4,153,700 0.564,000,000 Banco Popolare SC, senior note, Reg S, 3.50%, 03/14/19 ITA EUR 4,118,700 0.564,000,000 Cemex SAB de CV, senior secured note, first lien, Reg S, 4.375%, 03/05/23 MEX EUR 4,110,380 0.564,000,000 ARD Finance SA, senior secured note, Reg S, PIK, 7.125%, 09/15/23 ‡ LUX EUR 4,009,740 0.544,100,000 ELM BV (Swiss Reinsurance Co.), junior sub. note, Reg S, 2.60% to 09/01/25, FRN

thereafter, Perpetual CHE EUR 3,945,881 0.533,500,000 Intesa Sanpaolo SpA, junior sub. bond, Reg S, 8.375% to 10/14/19, FRN thereafter,

Perpetual ITA EUR 3,927,997 0.533,000,000 Entertainment One Ltd., senior secured note, Reg S, 6.875%, 12/15/22 CAN GBP 3,803,200 0.513,000,000 Investec PLC, senior note, Reg S, 4.50%, 05/05/22 ZAF GBP 3,646,994 0.493,500,000 Cemex Finance LLC, senior secured note, Reg S, 4.625%, 06/15/24 MEX EUR 3,613,015 0.493,000,000 Societe Generale SA, junior sub. bond, Reg S, 9.375% to 09/04/19, FRN thereafter,

Perpetual FRA EUR 3,573,405 0.483,700,000 ATF Netherlands BV, senior note, Reg S, 1.50%, 07/15/24 DEU EUR 3,479,240 0.472,700,000 Virgin Media Secured Finance PLC, senior secured bond, first lien, Reg S, 5.50%,

01/15/25 GBR GBP 3,271,658 0.443,000,000 ProGroup AG, first lien, Reg S, 5.125%, 05/01/22 DEU EUR 3,218,190 0.443,000,000 HSBC Holdings PLC, sub. note, Reg S, 3.00%, 06/30/25 GBR EUR 3,200,460 0.433,000,000 Europcar Groupe SA, senior note, Reg S, 5.75%, 06/15/22 FRA EUR 3,179,520 0.433,000,000 Snai SpA, secured note, Reg S, 6.375%, 11/07/21 ITA EUR 3,161,250 0.433,000,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior secured note, Reg

S, 4.125%, 05/15/23 LUX EUR 3,149,850 0.433,000,000 Catalent Pharma Solutions Inc., senior note, Reg S, 4.75%, 12/15/24 USA EUR 3,149,685 0.433,000,000 EC Finance PLC, secured note, Reg S, 5.125%, 07/15/21 FRA EUR 3,134,880 0.423,000,000 Merlin Entertainments PLC, senior note, Reg S, 2.75%, 03/15/22 GBR EUR 3,133,890 0.423,000,000 Quintiles IMS Inc., senior note, Reg S, 3.50%, 10/15/24 USA EUR 3,130,470 0.423,000,000 Gestamp Funding Luxembourg SA, senior secured note, Reg S, 3.50%, 05/15/23 ESP EUR 3,127,740 0.423,000,000 N&W Global Vending SpA, senior secured note, Reg S, 7.00%, 10/15/23 ITA EUR 3,124,800 0.423,000,000 ArcelorMittal, senior note, 6.50%, 03/01/21 FRA USD 3,115,900 0.423,000,000 PrestigeBidCo GmbH, secured note, Reg S, 6.25%, 12/15/23 DEU EUR 3,103,500 0.423,000,000 Elis SA, senior note, Reg S, 3.00%, 04/30/22 FRA EUR 3,101,460 0.423,000,000 Commerzbank AG, sub. note, Reg S, 4.00%, 03/23/26 DEU EUR 3,089,115 0.423,000,000 Schaeffler Verwaltung Zwei GmbH, first lien, Reg S, PIK, 3.25%, 09/15/23 ‡ DEU EUR 3,086,460 0.423,000,000 OTE PLC, senior note, Reg S, 3.50%, 07/09/20 GRC EUR 3,079,800 0.422,500,000 Wagamama Finance PLC, senior secured note, Reg S, 7.875%, 02/01/20 GBR GBP 3,076,845 0.423,000,000 Immobiliare Grande Distribuzione SIIQ SpA, senior note, Reg S, 2.50%, 05/31/21 ITA EUR 3,071,250 0.423,000,000 Schaeffler Finance BV, senior secured note, Reg S, 2.50%, 05/15/20 DEU EUR 3,068,745 0.423,000,000 Tesco Corporate Treasury Services PLC, senior note, Reg S, 2.50%, 07/01/24 GBR EUR 3,055,065 0.413,000,000 Axalta Coating Systems Dutch Holding B BV, senior note, Reg S, 3.75%, 01/15/25 USA EUR 3,028,215 0.413,000,000 Schaeffler Verwaltung Zwei GmbH, senior secured note, Reg S, PIK, 3.75%, 09/15/26 ‡ DEU EUR 2,999,370 0.413,000,000 Paroc Group Oy, secured note, Reg S, FRN, 4.938%, 05/15/20 † FIN EUR 2,992,500 0.413,000,000 NEW Areva Holding SA, senior note, Reg S, 3.125%, 03/20/23 FRA EUR 2,897,430 0.392,800,000 Sarens Finance Co. NV, senior secured note, first lien, Reg S, 5.125%, 02/05/22 BEL EUR 2,894,598 0.392,800,000 Buzzi Unicem SpA, senior note, Reg S, 2.125%, 04/28/23 ITA EUR 2,856,020 0.392,800,000 Codere Finance 2 Luxembourg SA, secured note, Reg S, 6.75%, 11/01/21 ESP EUR 2,856,000 0.392,750,000 PortAventura Entertainment Barcelona BV, secured note, Reg S, FRN, 5.311%,

12/01/19 † ESP EUR 2,777,638 0.382,289,664 Bakkavor Finance 2 PLC, senior secured note, Reg S, 8.25%, 02/15/18 GBR GBP 2,719,920 0.372,600,000 Wind Acquisition Finance SA, senior note, Reg S, 7.00%, 04/23/21 ITA EUR 2,711,176 0.372,800,000 Horizon Pharma Inc./Horizon Pharma USA Inc., senior note, 144A, 8.75%, 11/01/24 USA USD 2,707,660 0.372,600,000 Schaeffler Verwaltung Zwei GmbH, first lien, Reg S, PIK, 2.75%, 09/15/21 ‡ DEU EUR 2,682,004 0.362,500,000 Axalta Coating Systems LLC, senior note, Reg S, 4.25%, 08/15/24 USA EUR 2,612,138 0.352,500,000 AXA SA, junior sub. bond, Reg S, 3.875% to 10/07/25, FRN thereafter, Perpetual FRA EUR 2,576,400 0.353,000,000 EnQuest PLC, Reg S, PIK, 7.00%, 04/15/22 ‡ GBR GBP 2,555,978 0.352,400,000 Hanesbrands Finance Luxembourg SCA, senior note, Reg S, 3.50%, 06/15/24 USA EUR 2,517,564 0.342,300,000 Kerling PLC, senior secured note, Reg S, 6.25%, 05/15/21 GBR EUR 2,456,113 0.332,000,000 Pennon Group PLC, senior sub. bond, Reg S, 6.75% to 03/08/18, FRN thereafter,

Perpetual GBR GBP 2,447,368 0.332,000,000 Telefonica Europe BV, junior sub. note, Reg S, 6.75% to 11/26/20, FRN thereafter,

Perpetual ESP GBP 2,442,920 0.332,400,000 Ziggo Secured Finance BV, senior secured note, Reg S, 4.25%, 01/15/27 NLD EUR 2,405,796 0.331,900,000 AMC Entertainment Holdings Inc., senior note, Reg S, 6.375%, 11/15/24 USA GBP 2,364,494 0.322,100,000 Volvo Car AB, senior note, Reg S, 3.25%, 05/18/21 SWE EUR 2,266,005 0.312,000,000 Newell Brands Inc., senior note, 3.75%, 10/01/21 USA EUR 2,229,000 0.302,000,000 Petrobras Global Finance BV, senior bond, 6.25%, 12/14/26 BRA GBP 2,195,133 0.303,000,000 Valeant Pharmaceuticals International Inc., senior note, Reg S, 4.50%, 05/15/23 CAN EUR 2,190,030 0.302,000,000 Huntsman International LLC, senior note, 5.125%, 04/15/21 USA EUR 2,175,400 0.29






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assets

Corporate Bonds (continued)2,000,000 Paprec Holding, senior secured note, Reg S, 5.25%, 04/01/22 FRA EUR 2,128,330 0.292,000,000 Albea Beauty Holdings SA, first lien, Reg S, 8.75%, 11/01/19 FRA EUR 2,103,280 0.282,000,000 La Financiere Atalian SA, senior note, Reg S, 7.25%, 01/15/20 FRA EUR 2,090,530 0.282,000,000 CNH Industrial Finance Europe SA, senior note, Reg S, 2.75%, 03/18/19 GBR EUR 2,082,130 0.282,000,000 Virgin Media Finance PLC, senior note, Reg S, 4.50%, 01/15/25 GBR EUR 2,070,730 0.282,000,000 Matterhorn Telecom Holding SA, senior note, Reg S, 4.875%, 05/01/23 CHE EUR 2,030,780 0.272,000,000 Rain CII Carbon LLC/CII Carbon Corp., second lien, Reg S, 8.50%, 01/15/21 USA EUR 1,990,000 0.272,000,000 Onorato Armatori SpA, senior note, first lien, Reg S, 7.75%, 02/15/23 ITA EUR 1,975,020 0.272,000,000 Petrobras Global Finance BV, senior bond, 4.25%, 10/02/23 BRA EUR 1,963,840 0.272,000,000 Telefonica Europe BV, junior sub. bond, 3.75% to 3/15/22, FRN thereafter, Perpetual ESP EUR 1,958,350 0.272,000,000 Banco Bilbao Vizcaya Argentaria SA, junior sub. note, Reg S, 6.75% to 02/18/20, FRN

thereafter, Perpetual ESP EUR 1,916,300 0.261,750,000 Ephios Bondco PLC, secured note, Reg S, 6.25%, 07/01/22 DEU EUR 1,911,875 0.262,000,000 EDF SA, junior sub. bond, Reg S, 5.00% to 01/22/26, FRN thereafter, Perpetual FRA EUR 1,909,340 0.262,000,000 Unitymedia KabelBW GmbH, senior bond, Reg S, 3.75%, 01/15/27 DEU EUR 1,906,420 0.261,700,000 Cott Corp., senior note, Reg S, 5.50%, 07/01/24 CAN EUR 1,809,795 0.241,700,000 Ontex Group NV, senior note, Reg S, 4.75%, 11/15/21 BEL EUR 1,801,601 0.241,700,000 Play Finance 1 SA, senior note, Reg S, 6.50%, 08/01/19 POL EUR 1,765,051 0.241,700,000 Royal Bank of Scotland Group PLC, sub. note, 6.125%, 12/15/22 GBR USD 1,718,289 0.231,600,000 LANXESS AG, sub. bond, Reg S, 4.50% to 06/05/23, FRN thereafter, 12/06/76 DEU EUR 1,670,448 0.231,500,000 Synlab Unsecured Bondco PLC, senior note, Reg S, 8.25%, 07/01/23 DEU EUR 1,646,250 0.221,555,552 Avis Budget Finance PLC, senior note, Reg S, 6.00%, 03/01/21 USA EUR 1,620,372 0.221,500,000 Onex Wizard Acquisition Co. II SCA, senior note, Reg S, 7.75%, 02/15/23 LUX EUR 1,620,000 0.223,600,000 CGG SA, senior note, 6.50%, 06/01/21 FRA USD 1,590,952 0.221,500,000 Bombardier Inc., senior bond, Reg S, 6.125%, 05/15/21 CAN EUR 1,588,208 0.211,160,000 Virgin Media Finance PLC, senior bond, Reg S, 7.00%, 04/15/23 GBR GBP 1,474,937 0.202,000,000 EnQuest PLC, 144A, PIK, 7.00%, 04/15/22 ‡ GBR USD 1,387,569 0.191,261,000 Kedrion SpA, senior note, Reg S, 4.625%, 04/24/19 ITA EUR 1,317,713 0.181,000,000 Horizon Holdings I SASU, senior note, Reg S, 7.25%, 08/01/23 FRA EUR 1,071,250 0.141,000,000 Mercury Bondco PLC, senior secured note, PIK, 8.25%, 05/30/21 ‡ ITA EUR 1,057,475 0.141,000,000 Intesa Sanpaolo SpA, junior sub. bond, Reg S, 7.00% to 01/19/21, FRN thereafter,

Perpetual ITA EUR 992,720 0.131,000,000 Paternoster Holding III GmbH, senior note, Reg S, 8.50%, 02/15/23 DEU EUR 966,455 0.135,250,000 Edcon Ltd., senior secured note, first lien, 9.50%, 03/01/18 *,^ ZAF EUR 813,750 0.11

300,000 Stena International SA, senior secured bond, first lien, 144A, 5.75%, 03/01/24 SWE USD 248,893 0.033,000,000 Abengoa Finance SAU, senior note, Reg S, 6.00%, 03/31/21 * ESP EUR 135,000 0.02

681,919,630 92.33

Securities Maturing Within One Year4,000,000 HeidelbergCement Finance Luxembourg SA, senior note, Reg S, 8.00%, 01/31/17 DEU EUR 4,032,820 0.55

TOTAL BONDS 685,952,450 92.88


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESBanks

168,370 Astana Finance JSC, GDR, Reg S ** KAZ USD 0 0.00

TOTAL SHARES 0 0.00


118,753 Astana Finance JSC, secured note, Reg S, 0.00%, 12/22/24 ** KAZ USD 1,129 0.00

TOTAL BONDS 1,129 0.00

TOTAL TRANSFERABLE SECURITIES NOT ADMITTED TOAN OFFICIAL STOCK EXCHANGE LISTING NOR DEALT INON ANOTHER REGULATED MARKET 1,129 0.00


‡ Income may be received in additional securities and/or cash† Floating Rates are indicated as at December 31, 2016^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.* These Bonds are currently in default** These securities are submitted to a Fair Valuation






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TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETBONDSAsset-Backed Securities

1,234,184 Taurus 2013 GMF1 PLC, Series 2013-GMF1, Class B, Reg S, FRN, 1.188%, 05/21/24 † DEU EUR 1,241,244 1.19

Corporate Bonds1,800,000 ATF Netherlands BV, senior note, Reg S, 1.50%, 05/03/22 DEU EUR 1,757,340 1.691,500,000 JPMorgan Chase & Co., senior note, Reg S, 3.875%, 09/23/20 USA EUR 1,707,630 1.641,500,000 ING Bank NV, sub. bond, Reg S, 6.125% to 05/29/18, FRN thereafter, 05/29/23 NLD EUR 1,619,340 1.561,600,000 FedEx Corp., senior note, 0.50%, 04/09/20 USA EUR 1,618,416 1.551,600,000 Johnson & Johnson, senior note, 0.25%, 01/20/22 USA EUR 1,605,248 1.541,500,000 Glencore Finance Europe SA, senior note, Reg S, 2.75%, 04/01/21 CHE EUR 1,590,810 1.531,500,000 Inmobiliaria Colonial SA, senior note, Reg S, 1.863%, 06/05/19 ESP EUR 1,553,280 1.491,500,000 The Goldman Sachs Group Inc., senior note, Reg S, FRN, 0.688%, 07/27/21 † USA EUR 1,525,890 1.471,500,000 FCE Bank PLC, senior note, Reg S, 0.868%, 08/11/18 GBR EUR 1,521,075 1.461,500,000 DNB Bank ASA, sub. note, Reg S, FRN, 4.75%, 03/08/22 † NOR EUR 1,512,397 1.451,500,000 Nordea Bank AB, sub. note, Reg S, FRN, 4.625%, 02/15/22 † SWE EUR 1,507,822 1.451,500,000 The Coca-Cola Co., senior note, FRN, 0.00%, 09/09/19 † USA EUR 1,504,635 1.451,500,000 General Electric Co., senior note, FRN, 0.00%, 05/28/20 † USA EUR 1,503,772 1.441,000,000 Barclays Bank PLC, sub. bond, Reg S, 10.00%, 05/21/21 GBR GBP 1,492,521 1.431,300,000 Anheuser-Busch InBev SA/NV, senior note, Reg S, FRN, 0.434%, 03/17/20 † BEL EUR 1,319,103 1.271,300,000 BMW U.S. Capital LLC, senior note, FRN, 0.00%, 04/20/18 † DEU EUR 1,301,553 1.251,300,000 Total SA, junior sub. bond, Reg S, 2.25% to 02/26/21, FRN thereafter, Perpetual FRA EUR 1,299,993 1.251,300,000 LANXESS AG, senior note, Reg S, 0.25%, 10/07/21 DEU EUR 1,292,421 1.241,300,000 Teva Pharmaceutical Finance Netherlands II BV, senior note, Reg S, 0.375%, 07/25/20 ISR EUR 1,292,232 1.241,200,000 Intesa Sanpaolo SpA, senior note, Reg S, 4.00%, 11/08/18 ITA EUR 1,280,394 1.231,200,000 UniCredit Bank Austria AG, senior note, Reg S, 2.50%, 05/27/19 AUT EUR 1,259,268 1.211,200,000 Skandinaviska Enskilda Banken AB, sub. note, Reg S, 4.00% to 09/12/17, FRN thereafter,

09/12/22 SWE EUR 1,232,304 1.181,100,000 AXA SA, sub. bond, Reg S, 5.25% to 04/16/20, FRN thereafter, 04/16/40 FRA EUR 1,226,660 1.181,200,000 Nykredit Realkredit AS, senior note, Reg S, 0.875%, 06/13/19 DNK EUR 1,223,172 1.181,200,000 Berkshire Hathaway Inc., senior note, 0.50%, 03/13/20 USA EUR 1,217,532 1.171,200,000 Vodafone Group PLC, senior note, Reg S, FRN, 0.637%, 02/25/19 † GBR EUR 1,216,716 1.171,200,000 Danone SA, senior note, Reg S, 0.167%, 11/03/20 FRA EUR 1,204,944 1.161,200,000 Daimler AG, senior note, Reg S, FRN, 0.164%, 03/09/18 † DEU EUR 1,203,810 1.161,200,000 Bank of America Corp., FRN, 0.523%, 03/28/18 † USA EUR 1,202,496 1.161,100,000 Madrilena Red de Gas Finance BV, senior note, Reg S, 3.779%, 09/11/18 ESP EUR 1,169,746 1.121,100,000 HSBC France SA, senior note, Reg S, 1.875%, 01/16/20 FRA EUR 1,162,178 1.121,000,000 Bharti Airtel International Netherlands BV, senior note, Reg S, 4.00%, 12/10/18 IND EUR 1,071,920 1.031,000,000 Orange SA, senior note, Reg S, 1.875%, 09/03/18 FRA EUR 1,032,760 0.991,000,000 United Technologies Corp., senior note, FRN, 0.487%, 02/22/18 † USA EUR 1,006,960 0.971,000,000 Heathrow Funding Ltd., senior note, Reg S, 4.375%, 01/25/19 GBR EUR 1,002,680 0.961,000,000 Caterpillar International Finance Ltd., senior note, Reg S, FRN, 0.00%, 05/13/18 † USA EUR 1,000,905 0.96

700,000 BHP Billiton Finance Ltd., sub. bond, Reg S, 4.750% to 04/22/21, FRN thereafter,04/22/76 AUS EUR 762,825 0.73

500,000 Lincoln Finance Ltd., senior secured note, Reg S, 6.875%, 04/15/21 NLD EUR 544,250 0.52500,000 Zapadoslovenska Energetika AS, senior note, Reg S, 2.875%, 10/14/18 SVK EUR 526,223 0.51500,000 Engie SA, junior sub. bond, Reg S, 3.875% to 07/10/18, FRN thereafter, Perpetual FRA EUR 523,150 0.50500,000 Veolia Environnement SA, junior sub. note, Reg S, 4.45% to 04/16/18, FRN thereafter,

Perpetual FRA EUR 522,848 0.50500,000 CNH Industrial Finance Europe SA, senior note, Reg S, 2.75%, 03/18/19 GBR EUR 520,533 0.50502,000 The Royal Bank of Scotland PLC, sub. note, Reg S, 10.50% to 03/16/17, FRN thereafter,

03/16/22 GBR EUR 512,492 0.49500,000 ArcelorMittal, senior note, Reg S, FRN, 1.726%, 04/09/18 † FRA EUR 510,045 0.49500,000 Banco Popolare SC, senior note, Reg S, 2.625%, 09/21/18 ITA EUR 505,018 0.49400,000 Fiat Chrysler Finance Europe, senior note, Reg S, 6.75%, 10/14/19 GBR EUR 460,614 0.44400,000 Buzzi Unicem SpA, senior note, Reg S, 6.25%, 09/28/18 ITA EUR 440,996 0.42400,000 Schaeffler Verwaltung Zwei GmbH, first lien, Reg S, PIK, 2.75%, 09/15/21 ‡ DEU EUR 412,616 0.40400,000 Play Finance 2 SA, secured note, first lien, Reg S, 5.25%, 02/01/19 POL EUR 408,096 0.39

54,889,629 52.73

Government and Municipal Bonds6,600,000 Italy Treasury Bond, 0.35%, 11/01/21 ITA EUR 6,523,110 6.273,446,368 United Kingdom Treasury Bond, senior note, Reg S, Index Linked, 0.125%, 11/22/19 GBR GBP 4,412,752 4.243,600,000 Italy Treasury Bond, 2.50%, 05/01/19 ITA EUR 3,811,410 3.663,207,062 Government of Germany, Reg S, Index Linked, 0.75%, 04/15/18 DEU EUR 3,281,305 3.152,800,000 Government of the Netherlands, Reg S, 1.25%, 01/15/19 NLD EUR 2,914,114 2.802,500,000 Government of Ireland, 4.50%, 04/18/20 IRL EUR 2,912,000 2.802,745,666 Italy Treasury Bond, senior note, Index Linked, 1.70%, 09/15/18 ITA EUR 2,867,985 2.75

26,722,676 25.67

Securities Maturing Within One Year3,000,000 Italy Treasury Bond, senior note, 4.75%, 05/01/17 ITA EUR 3,050,775 2.931,500,000 Standard Chartered Bank, senior note, Reg S, FRN, 0.374%, 06/19/17 † GBR EUR 1,503,397 1.441,400,000 UBS AG London, senior note, Reg S, FRN, 0.00%, 05/15/17 † CHE EUR 1,401,463 1.351,300,000 Vonovia Finance BV, senior note, FRN, Reg S, 0.634%, 12/15/17 † DEU EUR 1,308,749 1.261,200,000 Santander UK PLC, senior note, Reg S, FRN, 0.138%, 08/11/17 † GBR EUR 1,202,112 1.151,100,000 Carlsberg Breweries A/S, senior note, Reg S, 3.375%, 10/13/17 DNK EUR 1,130,102 1.081,000,000 Sampo OYJ, senior note, Reg S, 4.25%, 02/27/17 FIN EUR 1,006,800 0.97

900,000 Solvay SA, senior note, Reg S, FRN, 0.506%, 12/01/17 † BEL EUR 904,536 0.87


— Franklin Euro Short Duration Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year (continued)900,000 Credit Agricole SA/London, senior note, FRN, 0.684%, 05/18/17 † FRA EUR 902,799 0.87

12,410,733 11.92

TOTAL BONDS 95,264,282 91.51



† Floating Rates are indicated as at December 31, 2016‡ Income may be received in additional securities and/or cash


— Franklin Euro Short Duration Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETBONDSSecurities Maturing Within One Year

6,600,000 Danske Bank AS, senior note, Reg S, FRN, 0.036%, 06/02/17 † DNK EUR 6,605,769 4.836,500,000 Banque Federative du Credit Mutuel SA, senior note, Reg S, FRN, 0.00%, 03/23/17 † FRA EUR 6,501,179 4.766,500,000 BNP Paribas SA, senior note, Reg S, FRN, 0.00%, 01/19/17 † FRA EUR 6,500,421 4.766,500,000 Societe Generale SA, senior note, Reg S, FRN, 0.00%, 01/16/17 † FRA EUR 6,500,334 4.766,300,000 Credit Suisse London, senior note, Reg S, FRN, 0.011%, 03/30/17 † CHE EUR 6,301,858 4.616,000,000 ABN AMRO Bank NV, senior note, Reg S, FRN, 0.00%, 01/14/17 † NLD EUR 6,000,259 4.395,700,000 Lloyds Bank PLC, senior note, Reg S, FRN, 0.346%, 05/29/17 † GBR EUR 5,708,118 4.185,500,000 UBS AG London, senior note, Reg S, FRN, 0.00%, 05/15/17 † CHE EUR 5,502,774 4.035,000,000 Credit Suisse London, senior note, Reg S, FRN, 0.148%, 11/10/17 † CHE EUR 5,012,966 3.675,000,000 Standard Chartered Bank, senior note, Reg S, FRN, 0.374%, 06/19/17 † GBR EUR 5,010,940 3.675,000,000 Bank of China Ltd., zero cpn., 02/27/17 DEU EUR 5,001,612 3.664,600,000 Standard Chartered Bank, senior note, Reg S, FRN, 0.416%, 09/04/17 † GBR EUR 4,618,256 3.384,600,000 Westpac Securities NZ Ltd., senior note, Reg S, FRN, 0.082%, 03/10/17 † NZL EUR 4,602,297 3.374,200,000 Santander UK PLC, senior note, Reg S, FRN, 0.00%, 01/23/17 † GBR EUR 4,200,183 3.074,000,000 Canadian Imperial Bank of Commerce, senior note, Reg S, FRN, 0.00%, 09/08/17 † CAN EUR 4,007,466 2.934,000,000 Bank of China Ltd./London, zero cpn., 04/11/17 CHN EUR 4,001,909 2.934,000,000 The Coca-Cola Co., senior note, FRN, 0.00%, 03/09/17 † USA EUR 4,001,030 2.933,400,000 HSBC France SA, senior note, Reg S, FRN, 0.00%, 09/25/17 † FRA EUR 3,404,997 2.493,100,000 BMW Finance NV, senior note, Reg S, FRN, 0.049%, 04/04/17 † DEU EUR 3,101,768 2.273,000,000 The Toronto-Dominion Bank, senior note, FRN, 0.00%, 06/16/17 † CAN EUR 3,001,824 2.202,600,000 ING Bank NV, senior note, Reg S, FRN, 0.398%, 08/14/17 † NLD EUR 2,610,439 1.912,400,000 BPCE SA, senior note, Reg S, FRN, 0.00%, 03/10/17 † FRA EUR 2,401,059 1.762,011,000 Toyota Motor Credit Corp., senior note, Reg S, FRN, 0.00%, 09/08/17 † USA EUR 2,013,531 1.472,000,000 UniCredit SpA, secured note, Reg S, FRN, 0.238%, 01/31/17 † ITA EUR 2,000,645 1.461,500,000 Lloyds Bank PLC, senior note, FRN, 1.408%, 07/25/17 † GBR EUR 1,512,722 1.111,400,000 Paccar Financial Europe BV, senior note, Reg S, FRN, 0.068%, 05/19/17 † USA EUR 1,401,224 1.031,000,000 Credit Agricole SA/London, senior note, FRN, 0.684%, 05/18/17 † FRA EUR 1,002,873 0.731,000,000 National Bank of Canada, senior note, Reg S, FRN, 0.00%, 09/09/17 † CAN EUR 1,001,451 0.731,000,000 Societe Generale SA, senior note, FRN, 0.00%, 07/17/17 † FRA EUR 1,001,418 0.731,000,000 Nykredit Bank AS, senior note, Reg S, FRN, 0.00%, 06/02/17 † DNK EUR 1,000,636 0.731,000,000 Danske Bank AS, 0.00%, 05/16/17 GBR EUR 1,000,378 0.731,000,000 GE Capital European Funding, senior note, FRN, 0.00%, 03/22/17 † USA EUR 1,000,291 0.73

800,000 Rabobank Nederland, senior note, Reg S, FRN, 0.383%, 09/27/17 † NLD EUR 803,427 0.59800,000 Credit Agricole SA, senior bond, FRN, 0.15%, 03/30/17 † FRA EUR 800,186 0.59400,000 Santander UK PLC, senior note, Reg S, FRN, 0.057%, 10/24/17 † GBR EUR 400,679 0.29

119,536,919 87.48

TOTAL BONDS 119,536,919 87.48





— Franklin Euro Short-Term Money Market Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAir Freight & Logistics

10,307 Cia de Distribucion Integral Logista Holdings SA ESP EUR 226,754 1.04

Auto Components20,236 Schaeffler AG, pfd. DEU EUR 284,417 1.31

Banks218,044 Intesa Sanpaolo SpA ITA EUR 528,975 2.43

8,751 KBC Groep NV BEL EUR 514,821 2.3630,484 ING Groep NV NLD EUR 407,571 1.8721,928 Nordea Bank AB, FDR SWE EUR 232,437 1.0743,346 FinecoBank Banca Fineco SpA ITA EUR 231,034 1.06

1,914,838 8.79

Beverages7,490 Anheuser-Busch InBev SA/NV BEL EUR 753,119 3.46

Capital Markets19,371 Banca Generali SpA ITA EUR 438,947 2.02

Chemicals8,918 BASF SE DEU EUR 787,549 3.62

16,511 Evonik Industries AG DEU EUR 468,582 2.153,394 Solvay SA BEL EUR 377,922 1.73

1,634,053 7.50

Construction & Engineering9,578 Vinci SA FRA EUR 619,697 2.85

Construction Materials12,468 CRH PLC IRL EUR 410,883 1.89

Diversified Financial Services51,281 Cerved Information Solutions SpA ITA EUR 404,607 1.86

Diversified Telecommunication Services45,164 Deutsche Telekom AG DEU EUR 738,657 3.39

Electrical Equipment8,977 Schneider Electric SE FRA EUR 593,470 2.73

17,673 Prysmian SpA ITA EUR 431,221 1.985,577 Legrand SA FRA EUR 300,879 1.38

1,325,570 6.09

Energy Equipment & Services3,600 Schoeller-Bleckmann Oilfield Equipment AG AUT EUR 275,508 1.27

Household Durables3,623 SEB SA FRA EUR 466,461 2.14

Industrial Conglomerates5,012 Siemens AG DEU EUR 585,402 2.69

Insurance5,478 Allianz SE DEU EUR 860,046 3.953,114 Euler Hermes Group FRA EUR 260,019 1.19

74,083 Corporacion Mapfre SA ESP EUR 214,841 0.99

1,334,906 6.13

Internet & Direct Marketing Retail10,231 Takkt AG DEU EUR 220,069 1.01

IT Services6,902 Cap Gemini SA FRA EUR 553,195 2.548,660 Tieto OYJ FIN EUR 224,467 1.03

777,662 3.57

Machinery8,620 GEA Group AG DEU EUR 329,543 1.51

Media22,463 Mediaset Espana Comunicacion SA ESP EUR 250,462 1.15

Oil, Gas & Consumable Fuels23,867 Total SA, B FRA EUR 1,162,800 5.34

8,847 Royal Dutch Shell PLC, A GBR EUR 229,889 1.06

1,392,689 6.40

Paper & Forest Products26,431 Corticeira Amorim SGPS SA PRT EUR 224,663 1.03


— Franklin Euroland Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


5,643 Ontex Group NV BEL EUR 159,415 0.73

729,164 3.35

Pharmaceuticals13,233 Sanofi FRA EUR 1,017,618 4.67

5,415 Bayer AG DEU EUR 536,789 2.47

1,554,407 7.14

Professional Services46,163 Applus Services SA ESP EUR 445,473 2.0519,326 Relx NV GBR EUR 309,023 1.42

754,496 3.47

Semiconductors & Semiconductor Equipment4,598 ASML Holding NV NLD EUR 490,377 2.25

Software11,216 SAP SE DEU EUR 928,797 4.27

Textiles, Apparel & Luxury Goods2,884 LVMH Moet Hennessy Louis Vuitton SE FRA EUR 523,158 2.40

Tobacco20,724 Scandinavian Tobacco Group AS, Reg S DNK DKK 331,503 1.52

Transportation Infrastructure17,732 Atlantia SpA ITA EUR 394,714 1.81

TOTAL SHARES 20,315,523 93.31




— Franklin Euroland Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAirlines

6,090 Wizz Air Holdings PLC CHE GBP 127,695 1.50

Banks37,484 FinecoBank Banca Fineco SpA ITA EUR 199,790 2.34

Beverages1,988 Anheuser-Busch InBev SA/NV BEL EUR 199,893 2.34

Biotechnology3,103 Shire PLC USA GBP 170,160 1.99

Capital Markets447 Partners Group Holding AG CHE CHF 199,084 2.33

51,992 Ashmore Group PLC GBR GBP 172,077 2.024,865 Banca Generali SpA ITA EUR 110,241 1.29

481,402 5.64

Chemicals40,903 Elementis PLC GBR GBP 132,838 1.56

Commercial Services & Supplies14,677 Berendsen PLC GBR GBP 149,577 1.7527,125 Mears Group PLC GBR GBP 144,809 1.70

294,386 3.45


Diversified Financial Services12,609 Cerved Information Solutions SpA ITA EUR 99,485 1.16

Electrical Equipment2,947 Schneider Electric SE FRA EUR 194,826 2.286,305 Prysmian SpA ITA EUR 153,842 1.80

348,668 4.08

Energy Equipment & Services6,977 Tecnicas Reunidas SA ESP EUR 271,859 3.18

23,477 John Wood Group PLC GBR GBP 240,772 2.822,523 Schoeller-Bleckmann Oilfield Equipment AG AUT EUR 193,085 2.267,099 TGS Nopec Geophysical Co. ASA NOR NOK 149,712 1.75

855,428 10.01

Food & Staples Retailing5,255 Marr SpA ITA EUR 91,174 1.07

Food Products66,549 Greencore Group PLC IRL GBP 192,052 2.25

Health Care Providers & Services8,458 NMC Health PLC ARE GBP 152,888 1.79

10,459 CVS Group PLC GBR GBP 135,060 1.581,736 Orpea FRA EUR 133,255 1.56

421,203 4.93

Household Durables1,408 SEB SA FRA EUR 181,280 2.12

Household Products1,596 Reckitt Benckiser Group PLC GBR GBP 128,665 1.51

Insurance11,471 Prudential PLC GBR GBP 218,566 2.56

Internet & Direct Marketing Retail9,230 Takkt AG DEU EUR 198,537 2.32

IT Services65,481 Paysafe Group PLC IMN GBP 284,642 3.33

2,604 Cap Gemini SA FRA EUR 208,711 2.446,015 Tieto OYJ FIN EUR 155,909 1.83

649,262 7.60

Machinery5,557 GEA Group AG DEU EUR 212,444 2.48

16,051 IMI PLC GBR GBP 195,432 2.29

407,876 4.77

Media29,156 Cineworld Group PLC GBR GBP 192,857 2.26

4,867 CTS Eventim AG & Co KGaA DEU EUR 145,767 1.70

338,624 3.96


— Franklin European Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Paper & Forest Products16,513 Corticeira Amorim SGPS SA PRT EUR 140,361 1.64

Pharmaceuticals1,388 Roche Holding AG CHE CHF 301,288 3.533,443 Sanofi FRA EUR 264,767 3.105,763 Novo Nordisk A/S, B DNK DKK 197,474 2.31

763,529 8.94

Professional Services13,430 Relx NV GBR EUR 214,746 2.51

Semiconductors & Semiconductor Equipment1,277 ASML Holding NV NLD EUR 136,192 1.59

Software3,279 SAP SE DEU EUR 271,534 3.18

Specialty Retail23,221 Byggmax Group AB SWE SEK 152,631 1.79

6,341 Grandvision NV, Reg S NLD EUR 132,558 1.5541,760 Card Factory PLC GBR GBP 123,692 1.45

408,881 4.79

Textiles, Apparel & Luxury Goods913 LVMH Moet Hennessy Louis Vuitton SE FRA EUR 165,618 1.94

Tobacco3,800 British American Tobacco PLC GBR GBP 205,601 2.41

TOTAL SHARES 8,305,804 97.23




— Franklin European Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


2,200,000 Skandinaviska Enskilda Banken AB, sub. bond, Reg S, 2.50% to 05/28/21, FRNthereafter, 05/28/26 SWE EUR 2,320,406 1.79

2,200,000 Korea Gas Corp., senior note, Reg S, 2.375%, 04/15/19 KOR EUR 2,316,435 1.792,300,000 Leeds Building Society, senior note, Reg S, 1.375%, 05/05/22 GBR EUR 2,296,446 1.772,200,000 Rabobank Nederland, sub. bond, Reg S, 2.50% to 05/26/21, FRN thereafter, 05/26/26 NLD EUR 2,286,889 1.762,200,000 KBC Groep NV, sub. note, Reg S, 2.375% to 11/25/19, FRN thereafter, 11/25/24 BEL EUR 2,284,348 1.762,200,000 The Goldman Sachs Group Inc., senior note, Reg S, 1.375%, 07/26/22 USA EUR 2,273,513 1.752,200,000 State Grid Europe Development (2014) PLC, senior note, Reg S, 1.50%, 01/26/22 CHN EUR 2,267,210 1.752,100,000 Time Warner Inc., senior note, 1.95%, 09/15/23 USA EUR 2,237,119 1.732,200,000 BMW U.S. Capital LLC, senior note, Reg S, 0.625%, 04/20/22 DEU EUR 2,231,075 1.722,200,000 APT Pipelines Ltd., senior note, Reg S, 1.375%, 03/22/22 AUS EUR 2,223,298 1.712,200,000 Commonwealth Bank of Australia, sub. bond, Reg S, 2.00% to 04/21/22, FRN thereafter,

04/22/27 AUS EUR 2,219,294 1.712,100,000 HSBC France SA, senior note, Reg S, 1.875%, 01/16/20 FRA EUR 2,218,702 1.712,000,000 Allianz SE, sub. note, Reg S, 4.75% to 10/24/23, FRN thereafter, Perpetual DEU EUR 2,217,000 1.712,100,000 Kommunal Landspensjonskasse Gjensidig Forsikringsselskap, senior sub. bond, Reg S,

4.25% to 06/10/25, FRN thereafter, 06/10/45 NOR EUR 2,196,957 1.692,300,000 Achmea BV, junior sub. note, 4.25% to 2/04/25, FRN thereafter, Perpetual NLD EUR 2,174,385 1.681,900,000 BHP Billiton Finance Ltd., sub. bond, Reg S, 5.625% to 10/22/24, FRN thereafter,

10/22/79 AUS EUR 2,170,911 1.672,100,000 Credit Suisse London, senior note, Reg S, 1.125%, 09/15/20 CHE EUR 2,169,100 1.672,300,000 Total SA, junior sub. note, Reg S, 2.625% to 02/26/25, FRN thereafter, Perpetual FRA EUR 2,167,014 1.672,000,000 McDonald’s Corp., senior bond, Reg S, 2.00%, 06/01/23 USA EUR 2,163,010 1.672,000,000 GE Capital European Funding, senior note, Reg S, 2.25%, 07/20/20 USA EUR 2,159,280 1.672,000,000 Bank of America Corp., senior note, Reg S, 2.50%, 07/27/20 USA EUR 2,159,000 1.672,200,000 JPMorgan Chase & Co., senior note, Reg S, 0.625%, 01/25/24 USA EUR 2,153,789 1.662,100,000 The Coca-Cola Co., senior note, 0.75%, 03/09/23 USA EUR 2,145,139 1.652,200,000 Teva Pharmaceutical Finance Netherlands II BV, senior note, Reg S, 1.125%, 10/15/24 ISR EUR 2,129,193 1.642,000,000 Eesti Energia AS, senior note, Reg S, 2.384%, 09/22/23 EST EUR 2,123,670 1.642,200,000 ELM BV (Swiss Reinsurance Co.), junior sub. note, Reg S, 2.60% to 09/01/25, FRN

thereafter, Perpetual CHE EUR 2,117,302 1.632,000,000 Australia Pacific Airports Melbourne Pty. Ltd., senior secured note, Reg S, 1.75%,

10/15/24 AUS EUR 2,115,420 1.632,000,000 Vodafone Group PLC, senior note, Reg S, 1.75%, 08/25/23 GBR EUR 2,104,900 1.621,800,000 Orange SA, senior bond, Reg S, 3.125%, 01/09/24 FRA EUR 2,099,736 1.621,900,000 Davide Campari-Milano SpA, senior note, Reg S, 4.50%, 10/25/19 ITA EUR 2,098,075 1.622,100,000 Danone SA, senior note, Reg S, 0.424%, 11/03/22 FRA EUR 2,096,482 1.621,900,000 Aquarius and Investments PLC for Zurich Insurance Co. Ltd., sub. bond, Reg S, 4.25% to

10/02/23, FRN thereafter, 10/02/43 CHE EUR 2,096,194 1.621,900,000 Carlsberg Breweries A/S, senior note, Reg S, 2.50%, 05/28/24 DNK EUR 2,094,256 1.622,000,000 IE2 Holdco SAU, senior note, Reg S, 2.375%, 11/27/23 ESP EUR 2,090,570 1.612,000,000 Autostrada Brescia Verona Vicenza Padova SpA, secured note, Reg S, 2.375%, 03/20/20 ITA EUR 2,085,380 1.611,900,000 Kerry Group Financial Services, senior note, Reg S, 2.375%, 09/10/25 IRL EUR 2,079,161 1.602,000,000 Johnson & Johnson, senior bond, 1.65%, 05/20/35 USA EUR 2,075,350 1.602,000,000 Arkema SA, senior note, Reg S, 1.50%, 01/20/25 FRA EUR 2,072,450 1.602,200,000 ATF Netherlands BV, senior note, Reg S, 1.50%, 07/15/24 DEU EUR 2,068,737 1.601,900,000 ING Bank NV, sub. bond, Reg S, 6.125% to 05/29/18, FRN thereafter, 05/29/23 NLD EUR 2,051,164 1.581,900,000 Compass Group PLC, senior note, Reg S, 1.875%, 01/27/23 GBR EUR 2,050,727 1.581,900,000 Transurban Finance Co. Pty. Ltd., senior secured note, first lien, 2.50%, 10/08/20 AUS EUR 2,049,958 1.581,900,000 Vonovia Finance BV, senior note, Reg S, 2.125%, 07/09/22 DEU EUR 2,036,297 1.572,000,000 Nationwide Building Society, senior note, Reg S, 1.25%, 03/03/25 GBR EUR 2,034,180 1.572,100,000 UBS Group Funding Jersey Ltd., senior note, Reg S, 1.25%, 09/01/26 CHE EUR 2,022,468 1.562,000,000 Enel Finance International NV, senior note, Reg S, 1.375%, 06/01/26 ITA EUR 2,010,910 1.551,800,000 AXA SA, sub. bond, Reg S, 5.25% to 04/16/20, FRN thereafter, 04/16/40 FRA EUR 2,007,261 1.551,800,000 Bacardi Ltd., senior note, Reg S, 2.75%, 07/03/23 BMU EUR 2,004,291 1.551,700,000 Intesa Sanpaolo SpA, senior note, Reg S, 4.00%, 10/30/23 ITA EUR 2,000,688 1.542,000,000 Chorus Ltd., senior note, Reg S, 1.125%, 10/18/23 NZL EUR 1,993,400 1.541,700,000 Statoil ASA, senior bond, Reg S, 2.875%, 09/10/25 NOR EUR 1,991,941 1.542,100,000 Koninklijke KPN NV, senior bond, Reg S, 1.125%, 09/11/28 NLD EUR 1,985,372 1.531,800,000 Telefonica Emisiones S.A.U., senior bond, Reg S, 2.932%, 10/17/29 ESP EUR 1,949,796 1.501,500,000 Danske Bank AS, sub. note, Reg S, FRN, 3.875%, 10/04/23 † DNK EUR 1,590,225 1.231,200,000 UniCredit SpA, senior note, Reg S, 2.00%, 03/04/23 ITA EUR 1,235,400 0.95

700,000 ArcelorMittal, senior note, Reg S, 2.875%, 07/06/20 FRA EUR 737,132 0.57700,000 Inmobiliaria Colonial SA, senior note, Reg S, 1.863%, 06/05/19 ESP EUR 724,864 0.56699,300 WMG Acquisition Corp., senior secured note, first lien, Reg S, 6.25%, 01/15/21 USA EUR 722,901 0.56700,000 Commerzbank AG, sub. note, Reg S, 4.00%, 03/23/26 DEU EUR 720,794 0.56700,000 Buzzi Unicem SpA, senior note, Reg S, 2.125%, 04/28/23 ITA EUR 714,005 0.55700,000 Tesco Corporate Treasury Services PLC, senior note, Reg S, 2.50%, 07/01/24 GBR EUR 712,849 0.55700,000 Casino Guichard Perrachon SA, senior bond, Reg S, 2.33%, 02/07/25 FRA EUR 700,228 0.54700,000 NEW Areva Holding SA, senior note, Reg S, 3.125%, 03/20/23 FRA EUR 676,067 0.52700,000 EDF SA, junior sub. bond, Reg S, 5.00% to 01/22/26, FRN thereafter, Perpetual FRA EUR 668,269 0.52500,000 Schaeffler Verwaltung Zwei GmbH, first lien, Reg S, PIK, 2.75%, 09/15/21 ‡ DEU EUR 515,770 0.40400,000 LANXESS AG, sub. bond, Reg S, 4.50% to 06/05/23, FRN thereafter, 12/06/76 DEU EUR 417,612 0.32

122,921,765 94.81


— Franklin European Corporate Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year2,300,000 Motability Operations Group PLC, senior note, Reg S, 3.75%, 11/29/17 GBR EUR 2,381,385 1.84

TOTAL BONDS 125,303,150 96.65





— Franklin European Corporate Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


315,708 BAE Systems PLC GBR GBP 2,186,250 1.90

Air Freight & Logistics108,047 bpost SA BEL EUR 2,431,058 2.11102,645 Cia de Distribucion Integral Logista Holdings SA ESP EUR 2,258,190 1.96

4,689,248 4.07

Auto Components177,936 SAF-Holland SA DEU EUR 2,426,157 2.11

Automobiles39,656 Bayerische Motoren Werke AG (BMW), pfd. DEU EUR 2,882,991 2.50

Banks1,918,930 Intesa Sanpaolo SpA, di Risp ITA EUR 4,286,890 3.72

118,801 Swedbank AB, A SWE SEK 2,730,587 2.3741,420 KBC Groep NV BEL EUR 2,436,739 2.12

436,655 FinecoBank Banca Fineco SpA ITA EUR 2,327,371 2.02

11,781,587 10.23

Capital Markets162,520 Banca Generali SpA ITA EUR 3,682,703 3.20530,234 Ashmore Group PLC GBR GBP 1,754,903 1.52

5,437,606 4.72

Chemicals42,119 BASF SE DEU EUR 3,719,529 3.23

873,523 Elementis PLC GBR GBP 2,836,876 2.4672,265 Evonik Industries AG DEU EUR 2,050,881 1.78

8,607,286 7.47

Construction & Engineering28,351 Vinci SA FRA EUR 1,834,310 1.59

Diversified Financial Services302,935 Cerved Information Solutions SpA ITA EUR 2,390,157 2.08

Diversified Telecommunication Services200,621 Deutsche Telekom AG DEU EUR 3,281,156 2.85

Energy Equipment & Services243,855 John Wood Group PLC GBR GBP 2,500,895 2.17

61,910 Tecnicas Reunidas SA ESP EUR 2,412,323 2.10

4,913,218 4.27

Food & Staples Retailing70,983 Marr SpA ITA EUR 1,231,555 1.07

Gas Utilities93,182 Italgas SpA ITA EUR 348,314 0.30

Insurance22,865 Allianz SE DEU EUR 3,589,805 3.1228,202 Euler Hermes Group FRA EUR 2,354,867 2.04

5,944,672 5.16

IT Services104,577 Tieto OYJ FIN EUR 2,710,636 2.35

Machinery93,511 IMI PLC GBR GBP 1,138,559 0.99

Media110,647 Mediaset Espana Comunicacion SA ESP EUR 1,233,714 1.07

Multi-Utilities176,399 Engie SA FRA EUR 2,137,956 1.86

Oil, Gas & Consumable Fuels200,627 Royal Dutch Shell PLC, A GBR GBP 5,267,219 4.58699,253 BP PLC GBR GBP 4,171,799 3.62

81,596 Total SA, B FRA EUR 3,975,357 3.45465,914 Snam SpA ITA EUR 1,823,587 1.58

15,237,962 13.23

Pharmaceuticals25,686 Roche Holding AG CHE CHF 5,575,573 4.8478,718 Novartis AG CHE CHF 5,443,467 4.73

194,199 GlaxoSmithKline PLC GBR GBP 3,551,302 3.0833,720 Sanofi FRA EUR 2,593,068 2.25

17,163,410 14.90


— Franklin European Dividend Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Road & Rail416,758 Nobina AB, Reg S SWE SEK 2,206,691 1.92

Specialty Retail322,869 Byggmax Group AB SWE SEK 2,122,210 1.84

Technology Hardware, Storage & Peripherals1,691 Neopost SA FRA EUR 50,257 0.04

Tobacco68,047 British American Tobacco PLC GBR GBP 3,681,726 3.2065,222 Imperial Brands PLC GBR GBP 2,704,977 2.35

150,600 Scandinavian Tobacco Group AS, Reg S DNK DKK 2,409,015 2.09

8,795,718 7.64

Wireless Telecommunication Services1,195,739 Vodafone Group PLC GBR GBP 2,797,693 2.43

TOTAL SHARES 113,549,313 98.59




— Franklin European Dividend Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


947,993 bpost SA BEL EUR 21,329,843 2.90895,513 Cia de Distribucion Integral Logista Holdings SA ESP EUR 19,701,286 2.68

41,031,129 5.58

Auto Components1,513,917 SAF-Holland SA DEU EUR 20,642,258 2.81

Beverages146,588 Anheuser-Busch InBev SA/NV BEL EUR 14,739,423 2.00

Capital Markets951,917 Banca Generali SpA ITA EUR 21,570,439 2.93

5,689,460 Ashmore Group PLC GBR GBP 18,830,265 2.56

40,400,704 5.49

Chemicals6,204,914 Elementis PLC GBR GBP 20,151,241 2.74

Commercial Services & Supplies2,106,703 Berendsen PLC GBR GBP 21,469,981 2.923,678,162 Mears Group PLC GBR GBP 19,636,102 2.67

41,106,083 5.59

Construction & Engineering127,944 Boskalis Westminster NLD EUR 4,220,873 0.57

Construction Materials1,101,437 BRAAS Monier Building Group SA DEU EUR 27,728,666 3.77

Diversified Financial Services2,574,994 Cerved Information Solutions SpA ITA EUR 20,316,703 2.76

Electrical Equipment422,344 Schneider Electric SE FRA EUR 27,921,162 3.79960,631 Prysmian SpA ITA EUR 23,439,396 3.19

51,360,558 6.98

Energy Equipment & Services628,046 Tecnicas Reunidas SA ESP EUR 24,471,812 3.32303,452 Schoeller-Bleckmann Oilfield Equipment AG AUT EUR 23,223,182 3.16

2,223,820 John Wood Group PLC GBR GBP 22,806,745 3.10751,780 TGS Nopec Geophysical Co. ASA NOR NOK 15,854,448 2.15

86,356,187 11.73

Insurance90,029 Euler Hermes Group FRA EUR 7,517,422 1.02

Internet & Direct Marketing Retail973,489 Takkt AG DEU EUR 20,939,748 2.85

IT Services264,837 Cap Gemini SA FRA EUR 21,226,686 2.88

4,241,437 Paysafe Group PLC IMN GBP 18,437,309 2.51

39,663,995 5.39

Machinery1,771,172 IMI PLC GBR GBP 21,565,208 2.93

Media1,745,146 Mediaset Espana Comunicacion SA ESP EUR 19,458,378 2.64

Pharmaceuticals506,146 Novartis AG CHE CHF 35,000,750 4.76161,086 Roche Holding AG CHE CHF 34,966,393 4.75385,936 Sanofi FRA EUR 29,678,479 4.03

99,645,622 13.54

Professional Services2,548,150 Applus Services SA ESP EUR 24,589,647 3.34

412,149 Relx NV GBR EUR 6,590,263 0.90

31,179,910 4.24

Road & Rail3,521,547 Nobina AB, Reg S SWE SEK 18,646,229 2.53

Technology Hardware, Storage & Peripherals10,425 Neopost SA FRA EUR 309,831 0.04


— Franklin European Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Tobacco477,138 Imperial Brands PLC GBR GBP 19,788,526 2.69

1,145,110 Scandinavian Tobacco Group AS, Reg S DNK DKK 18,317,308 2.49

38,105,834 5.18

TOTAL SHARES 665,086,002 90.38




— Franklin European Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


3,729 Bayerische Motoren Werke AG (BMW), pfd. DEU EUR 271,098 1.4837,854 Byggmax Group AB SWE SEK 248,814 1.3551,882 Card Factory PLC GBR GBP 153,673 0.84

673,585 3.67

Consumer Staples3,341 Anheuser-Busch InBev SA/NV BEL EUR 335,938 1.838,052 Unilever NV, IDR GBR EUR 314,954 1.715,561 British American Tobacco PLC GBR GBP 300,881 1.644,784 Imperial Brands PLC GBR GBP 198,409 1.08

1,150,182 6.26

Energy7,794 Total SA, B FRA EUR 379,724 2.066,068 Tecnicas Reunidas SA ESP EUR 236,440 1.29

21,702 John Wood Group PLC GBR GBP 222,568 1.21

838,732 4.56

Financials2,059 Allianz SE DEU EUR 323,263 1.765,175 BNP Paribas SA FRA EUR 313,346 1.71

15,303 Prudential PLC GBR GBP 291,580 1.5925,966 Nordea Bank AB SWE SEK 274,433 1.4910,682 Swedbank AB, A SWE SEK 245,521 1.34

4,149 KBC Groep NV BEL EUR 244,086 1.3342,799 FinecoBank Banca Fineco SpA ITA EUR 228,119 1.24

2,651 Euler Hermes Group FRA EUR 221,358 1.20350 Partners Group Holding AG CHE CHF 155,882 0.85

6,672 Banca Generali SpA ITA EUR 151,187 0.8219,100 Cerved Information Solutions SpA ITA EUR 150,699 0.82

2,599,474 14.15

Health Care2,004 Roche Holding AG CHE CHF 435,002 2.376,253 Novartis AG CHE CHF 432,404 2.36

19,104 GlaxoSmithKline PLC GBR GBP 349,353 1.909,183 Novo Nordisk A/S, B DNK DKK 314,663 1.71

1,531,422 8.34

Industrials4,191 Vinci SA FRA EUR 271,158 1.484,055 Schneider Electric SE FRA EUR 268,076 1.46

36,589 BAE Systems PLC GBR GBP 253,376 1.3818,269 IMI PLC GBR GBP 222,437 1.2167,444 Enav SpA ITA EUR 221,486 1.2028,712 Nobina AB, Reg S SWE SEK 152,027 0.83

6,641 bpost SA BEL EUR 149,422 0.816,741 Cia de Distribucion Integral Logista Holdings SA ESP EUR 148,302 0.81

1,686,284 9.18

Information Technology8,743 Tieto OYJ FIN EUR 226,619 1.23

Materials27,369 Corticeira Amorim SGPS SA PRT EUR 232,636 1.27

2,048 Solvay SA BEL EUR 228,045 1.247,998 Evonik Industries AG DEU EUR 226,983 1.23

68,409 Elementis PLC GBR GBP 222,167 1.21

909,831 4.95

Telecommunication Services21,381 Deutsche Telekom AG DEU EUR 349,686 1.90

TOTAL SHARES 9,965,815 54.24


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETINVESTMENTS FUNDSFinancials

26,503 FTIF Franklin Euro High Yield Fund, Class I (acc) EUR LUX EUR 528,473 2.88

TOTAL INVESTMENTS FUNDS 528,473 2.88


300,000 Skandinaviska Enskilda Banken AB, sub. bond, Reg S, 2.50% to 05/28/21, FRN thereafter,05/28/26 SWE EUR 316,419 1.72

300,000 Vonovia Finance BV, senior note, Reg S, 1.625%, 12/15/20 DEU EUR 313,785 1.71300,000 The Goldman Sachs Group Inc., senior note, Reg S, 1.375%, 07/26/22 USA EUR 310,024 1.69300,000 Commonwealth Bank of Australia, sub. bond, Reg S, 2.00% to 04/21/22, FRN thereafter,

04/22/27 AUS EUR 302,631 1.65300,000 Danone SA, senior note, Reg S, 0.424%, 11/03/22 FRA EUR 299,497 1.63300,000 Berkshire Hathaway Inc., senior bond, 1.125%, 03/16/27 USA EUR 295,292 1.61300,000 ATF Netherlands BV, senior note, Reg S, 1.50%, 05/03/22 DEU EUR 292,890 1.59


— Franklin European Income Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)200,000 BHP Billiton Finance Ltd., sub. bond, Reg S, 5.625% to 10/22/24, FRN thereafter,

10/22/79 AUS EUR 228,517 1.24200,000 CARMILA SAS, senior note, Reg S, 2.375%, 09/18/23 FRA EUR 213,746 1.16200,000 Eesti Energia AS, senior note, Reg S, 2.384%, 09/22/23 EST EUR 212,367 1.16200,000 Kommunal Landspensjonskasse Gjensidig Forsikringsselskap, senior sub. bond, Reg S,

4.25% to 06/10/25, FRN thereafter, 06/10/45 NOR EUR 209,234 1.14200,000 Johnson & Johnson, senior bond, 1.65%, 05/20/35 USA EUR 207,535 1.13200,000 JPMorgan Chase & Co., senior note, Reg S, 0.625%, 01/25/24 USA EUR 195,799 1.07200,000 Teva Pharmaceutical Finance Netherlands II BV, senior note, Reg S, 1.125%, 10/15/24 ISR EUR 193,563 1.05200,000 Koninklijke KPN NV, senior bond, Reg S, 1.125%, 09/11/28 NLD EUR 189,083 1.03200,000 Total SA, junior sub. note, Reg S, 2.625% to 02/26/25, FRN thereafter, Perpetual FRA EUR 188,436 1.03100,000 Tesco PLC, senior bond, 6.125%, 02/24/22 GBR GBP 133,130 0.72100,000 International Game Technology PLC, first lien, Reg S, 4.75%, 02/15/23 USA EUR 109,382 0.60100,000 Lincoln Finance Ltd., senior secured note, Reg S, 6.875%, 04/15/21 NLD EUR 108,850 0.59100,000 Telefonica Europe BV, junior sub. note, Reg S, 5.875% to 03/31/24, FRN thereafter,

Perpetual ESP EUR 105,463 0.57100,000 Commerzbank AG, sub. note, Reg S, 4.00%, 03/23/26 DEU EUR 102,971 0.56100,000 Buzzi Unicem SpA, senior note, Reg S, 2.125%, 04/28/23 ITA EUR 102,001 0.56100,000 Alliance Data Systems Corp., senior note, Reg S, 5.25%, 11/15/23 USA EUR 100,093 0.54100,000 Schaeffler Verwaltung Zwei GmbH, senior secured note, Reg S, PIK, 3.75%, 09/15/26 ‡ DEU EUR 99,979 0.54100,000 NEW Areva Holding SA, senior note, Reg S, 3.125%, 03/20/23 FRA EUR 96,581 0.53100,000 EDF SA, junior sub. bond, Reg S, 5.00% to 01/22/26, FRN thereafter, Perpetual FRA EUR 95,467 0.52

5,022,735 27.34

Government and Municipal Bonds500,000 Italy Treasury Bond, senior bond, 1.25%, 12/01/26 ITA EUR 474,987 2.58400,000 Government of the Netherlands, Reg S, 1.75%, 07/15/23 NLD EUR 450,618 2.45300,000 Romania, senior note, Reg S, 2.75%, 10/29/25 ROU EUR 313,882 1.71300,000 Government of Belgium, senior bond, Reg S, 1.00%, 06/22/26 BEL EUR 313,053 1.70200,000 United Kingdom Treasury Bond, Reg S, 2.00%, 09/07/25 GBR GBP 251,727 1.37200,960 Italy Treasury Bond, senior bond, Reg S, Index Linked, 1.25%, 09/15/32 ITA EUR 209,265 1.14100,000 Government of Lithuania, senior note, Reg S, 3.375%, 01/22/24 LTU EUR 120,438 0.66

2,133,970 11.61

TOTAL BONDS 7,156,705 38.95



‡ Income may be received in additional securities and/or cash


— Franklin European Income Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


184,780 Panalpina Welttransport Holding AG CHE CHF 21,934,382 3.90

Beverages5,742,226 C&C Group PLC IRL EUR 22,107,570 3.93

Building Products959,078 Uponor OYJ FIN EUR 15,834,378 2.81

Capital Markets4,124,556 Hellenic Exchanges - Athens Stock Exchange SA Holdings GRC EUR 20,169,079 3.58

37,046,000 ABG Sundal Collier Holding ASA NOR NOK 20,132,908 3.57243,100 Deutsche Boerse AG DEU EUR 18,849,974 3.35

59,151,961 10.50

Commercial Services & Supplies1,465,368 Elis SA FRA EUR 24,837,988 4.41

622,600 ISS A/S DNK DKK 19,968,615 3.55

44,806,603 7.96

Construction & Engineering1,534,750 Morgan Sindall Group PLC GBR GBP 13,386,082 2.38

Distributors3,353,600 Headlam Group PLC GBR GBP 19,149,971 3.40

Diversified Financial Services2,377,900 Kennedy Wilson Europe Real Estate PLC GBR GBP 26,697,572 4.74

Electrical Equipment310,100 Prysmian SpA ITA EUR 7,566,440 1.34

Electronic Equipment, Instruments & Components1,238,000 Sesa SpA ITA EUR 21,900,220 3.89

Energy Equipment & Services4,927,576 Amec Foster Wheeler PLC GBR GBP 27,113,824 4.81

Equity Real Estate Investment Trusts (REIT’s)4,592,738 Lar Espana Real Estate Socimi SA ESP EUR 32,286,948 5.73

19,131,602 Green REIT PLC IRL EUR 26,248,558 4.6610,378,400 Irish Residential Properties REIT PLC, Reg S IRL EUR 12,142,728 2.16

4,215,000 Irish Residential Properties REIT PLC IRL EUR 4,931,550 0.88

75,609,784 13.43

Food & Staples Retailing346,174 Sligro Food Group NV NLD EUR 11,451,436 2.03

Insurance182,398 Euler Hermes Group FRA EUR 15,230,233 2.70

Leisure products1,966,623 Beneteau SA FRA EUR 27,041,066 4.80

Machinery5,435,900 Vesuvius PLC GBR GBP 25,156,942 4.472,674,444 Zardoya Otis SA ESP EUR 21,475,785 3.81

46,632,727 8.28

Marine660,400 Clarkson PLC GBR GBP 16,800,661 2.98

Professional Services4,776,240 PageGroup PLC GBR GBP 21,835,682 3.884,437,500 SThree PLC GBR GBP 16,111,453 2.86

37,947,135 6.74

Real Estate Management & Development5,594,100 Countrywide PLC GBR GBP 11,543,006 2.05

Specialty Retail2,408,667 Carpetright PLC GBR GBP 4,258,075 0.76

Tobacco229,025 Scandinavian Tobacco Group AS DNK DKK 3,663,510 0.65

Trading Companies & Distributors3,843,171 Grafton Group PLC, units consisting of A shares and C shares GBR GBP 24,746,397 4.39

TOTAL SHARES 554,573,033 98.47




— Franklin European Small-Mid Cap Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


8,000,000 Berkshire Hathaway Inc., senior bond, 1.125%, 03/16/27 USA EUR 7,874,440 2.096,000,000 GE Capital European Funding, senior note, Reg S, 2.25%, 07/20/20 USA EUR 6,477,840 1.726,500,000 Total SA, junior sub. note, Reg S, 2.625% to 02/26/25, FRN thereafter, Perpetual FRA EUR 6,124,170 1.634,800,000 Anheuser-Busch InBev SA/NV, senior note, Reg S, 1.50%, 03/17/25 BEL EUR 5,001,672 1.334,300,000 BHP Billiton Finance Ltd., sub. bond, Reg S, 5.625% to 10/22/24, FRN thereafter,

10/22/79 AUS EUR 4,913,115 1.304,400,000 CARMILA SAS, senior note, Reg S, 2.375%, 09/18/23 FRA EUR 4,702,412 1.254,500,000 Commonwealth Bank of Australia, sub. bond, Reg S, 2.00% to 04/21/22, FRN

thereafter, 04/22/27 AUS EUR 4,539,465 1.214,000,000 Kerry Group Financial Services, senior note, Reg S, 2.375%, 09/10/25 IRL EUR 4,377,180 1.164,000,000 HSBC Holdings PLC, sub. bond, Reg S, 3.375% to 01/10/19, FRN thereafter, 01/10/24 GBR EUR 4,191,560 1.114,000,000 Kommunal Landspensjonskasse Gjensidig Forsikringsselskap, senior sub. bond, Reg S,

4.25% to 06/10/25, FRN thereafter, 06/10/45 NOR EUR 4,184,680 1.114,000,000 Johnson & Johnson, senior bond, 1.65%, 05/20/35 USA EUR 4,150,700 1.104,000,000 APT Pipelines Ltd., senior note, Reg S, 1.375%, 03/22/22 AUS EUR 4,042,360 1.074,000,000 BMW Finance NV, senior note, Reg S, 0.75%, 04/15/24 DEU EUR 4,030,440 1.074,000,000 The Coca-Cola Co., senior note, FRN, 0.00%, 09/09/19 † USA EUR 4,012,360 1.074,100,000 ATF Netherlands BV, senior note, Reg S, 1.50%, 05/03/22 DEU EUR 4,002,830 1.063,800,000 Vonovia Finance BV, senior note, Reg S, 1.625%, 12/15/20 DEU EUR 3,974,610 1.063,800,000 IE2 Holdco SAU, senior note, Reg S, 2.375%, 11/27/23 ESP EUR 3,972,083 1.053,800,000 Rabobank Nederland, sub. bond, Reg S, 2.50% to 05/26/21, FRN thereafter, 05/26/26 NLD EUR 3,950,081 1.054,000,000 JPMorgan Chase & Co., senior note, Reg S, 0.625%, 01/25/24 USA EUR 3,915,980 1.043,500,000 Bacardi Ltd., senior note, Reg S, 2.75%, 07/03/23 BMU EUR 3,897,232 1.033,500,000 Allianz SE, sub. note, Reg S, 4.75% to 10/24/23, FRN thereafter, Perpetual DEU EUR 3,879,750 1.034,000,000 Teva Pharmaceutical Finance Netherlands II BV, senior note, Reg S, 1.125%, 10/15/24 ISR EUR 3,871,260 1.034,000,000 UBS Group Funding Jersey Ltd., senior note, Reg S, 1.25%, 09/01/26 CHE EUR 3,852,320 1.024,000,000 Koninklijke KPN NV, senior bond, Reg S, 1.125%, 09/11/28 NLD EUR 3,781,660 1.003,500,000 Time Warner Inc., senior note, 1.95%, 09/15/23 USA EUR 3,728,532 0.993,500,000 Eesti Energia AS, senior note, Reg S, 2.384%, 09/22/23 EST EUR 3,716,422 0.993,500,000 Glencore Finance Europe SA, senior note, Reg S, 2.75%, 04/01/21 CHE EUR 3,711,890 0.993,500,000 Daimler AG, senior note, Reg S, 1.50%, 03/09/26 DEU EUR 3,696,017 0.983,500,000 Korea Gas Corp., senior note, Reg S, 2.375%, 04/15/19 KOR EUR 3,685,237 0.983,500,000 Vodafone Group PLC, senior note, Reg S, 1.75%, 08/25/23 GBR EUR 3,683,575 0.983,500,000 Yorkshire Building Society, senior note, Reg S, 2.125%, 03/18/19 GBR EUR 3,644,882 0.973,500,000 KBC Groep NV, sub. note, Reg S, 2.375% to 11/25/19, FRN thereafter, 11/25/24 BEL EUR 3,634,190 0.963,500,000 The Goldman Sachs Group Inc., senior note, Reg S, 1.375%, 07/26/22 USA EUR 3,616,952 0.963,500,000 Nykredit Realkredit AS, senior note, Reg S, 0.875%, 06/13/19 DNK EUR 3,567,585 0.953,500,000 Banca Popolare di Milano Scarl, secured note, Reg S, 1.50%, 12/02/25 ITA EUR 3,542,665 0.943,000,000 Intesa Sanpaolo SpA, senior note, Reg S, 4.00%, 10/30/23 ITA EUR 3,530,625 0.943,500,000 DNB Bank ASA, sub. note, Reg S, FRN, 4.75%, 03/08/22 † NOR EUR 3,528,928 0.943,500,000 Nordea Bank AB, sub. note, Reg S, FRN, 4.625%, 02/15/22 † SWE EUR 3,518,253 0.933,500,000 Orange SA, senior note, Reg S, 1.00%, 05/12/25 FRA EUR 3,512,058 0.933,000,000 Danske Bank AS, sub. note, Reg S, FRN, 3.875%, 10/04/23 † DNK EUR 3,180,450 0.843,400,000 EDF SA, senior bond, Reg S, 1.875%, 10/13/36 FRA EUR 3,081,998 0.822,200,000 NEW Areva Holding SA, senior note, Reg S, 3.125%, 03/20/23 FRA EUR 2,124,782 0.562,000,000 UniCredit SpA, senior note, Reg S, 2.00%, 03/04/23 ITA EUR 2,059,000 0.551,800,000 ArcelorMittal, senior note, Reg S, 3.125%, 01/14/22 FRA EUR 1,895,796 0.501,400,000 Tesco PLC, senior bond, 6.125%, 02/24/22 GBR GBP 1,863,826 0.491,700,000 La Financiere Atalian SA, senior note, Reg S, 7.25%, 01/15/20 FRA EUR 1,776,951 0.471,600,000 Fiat Chrysler Finance Europe, senior note, Reg S, 4.75%, 03/22/21 GBR EUR 1,765,496 0.471,600,000 Lincoln Finance Ltd., senior secured note, Reg S, 6.875%, 04/15/21 NLD EUR 1,741,600 0.461,400,000 Enel SpA, sub. bond, Reg S, 6.625% to 09/15/21, FRN thereafter, 09/15/76 ITA GBP 1,727,319 0.461,685,000 The Royal Bank of Scotland PLC, sub. note, Reg S, 10.50% to 03/16/17, FRN

thereafter, 03/16/22 GBR EUR 1,720,217 0.461,600,000 Play Finance 2 SA, secured note, first lien, Reg S, 5.25%, 02/01/19 POL EUR 1,632,384 0.431,600,000 Schaeffler Verwaltung Zwei GmbH, senior secured note, Reg S, PIK, 3.75%, 09/15/26 ‡ DEU EUR 1,599,664 0.421,500,000 Alliance Data Systems Corp., senior note, Reg S, 5.25%, 11/15/23 USA EUR 1,501,388 0.401,400,000 Buzzi Unicem SpA, senior note, Reg S, 2.125%, 04/28/23 ITA EUR 1,428,010 0.381,170,000 WMG Acquisition Corp., senior secured note, first lien, Reg S, 6.25%, 01/15/21 USA EUR 1,209,488 0.32

192,346,380 51.05

Government and Municipal Bonds34,000,000 Italy Treasury Bond, senior bond, 1.25%, 12/01/26 ITA EUR 32,299,150 8.5720,000,000 Government of Belgium, senior bond, Reg S, 1.00%, 06/22/26 BEL EUR 20,870,200 5.5416,000,000 United Kingdom Treasury Bond, Reg S, 2.00%, 09/07/25 GBR GBP 20,138,186 5.3417,081,588 Italy Treasury Bond, senior bond, Reg S, Index Linked, 1.25%, 09/15/32 ITA EUR 17,787,484 4.7212,000,000 Government of the Netherlands, 0.25%, 01/15/20 NLD EUR 12,355,020 3.2810,690,204 Government of Germany, Reg S, Index Linked, 0.75%, 04/15/18 DEU EUR 10,937,682 2.90

8,000,000 Government of Finland, Reg S, 0.375%, 09/15/20 FIN EUR 8,273,560 2.207,500,000 Romania, senior note, Reg S, 2.75%, 10/29/25 ROU EUR 7,847,063 2.085,000,000 Government of Lithuania, senior note, Reg S, 3.375%, 01/22/24 LTU EUR 6,021,875 1.605,500,000 Government of Mexico, senior note, 1.625%, 03/06/24 MEX EUR 5,390,000 1.435,000,000 Government of Chile, senior note, 1.75%, 01/20/26 CHL EUR 5,261,225 1.403,000,000 Government of Lithuania, senior bond, Reg S, 2.125%, 10/29/26 LTU EUR 3,358,125 0.89

150,539,570 39.95


— Franklin European Total Return Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year2,000,000 Motability Operations Group PLC, senior note, Reg S, 3.75%, 11/29/17 GBR EUR 2,070,770 0.551,900,000 Credit Agricole SA/London, senior note, FRN, 0.684%, 05/18/17 † FRA EUR 1,905,909 0.51

3,976,679 1.06

TOTAL BONDS 346,862,629 92.06





— Franklin European Total Return Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


3,930,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQA2, M2, FRN, 3.556%,05/25/28 † USA USD 4,035,527 1.23

3,720,575 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA2, M2, FRN, 3.356%,12/25/27 † USA USD 3,793,125 1.16

3,322,879 Invitation Homes Trust, 2015-SFR2, A, 144A, FRN, 2.03%, 06/17/32 † USA USD 3,331,454 1.013,200,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA3, M2, FRN, 3.606%,

04/25/28 † USA USD 3,293,780 1.003,233,789 Colony American Homes, 2015-1A, A, 144A, FRN, 1.936%, 07/17/32 † USA USD 3,240,436 0.992,942,051 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQA1, M2, FRN, 3.406%,

03/25/28 † USA USD 3,002,501 0.912,680,000 Dryden 33 Senior Loan Fund, 2014-33A, AR, 144A, FRN, 2.316%, 10/15/28 † CYM USD 2,683,779 0.822,480,000 Ballyrock CLO LLC, 2014-1A, A1, 144A, FRN, 2.361%, 10/20/26 † CYM USD 2,476,974 0.752,442,857 Dryden Senior Loan Fund, 2015-38A, A, 144A, FRN, 2.31%, 07/15/27 † CYM USD 2,443,907 0.742,250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2016-HQA2, M2, FRN, 3.006%,

11/25/28 † USA USD 2,297,353 0.702,000,000 Cole Park CLO Ltd., 2015-1A, A1N, 144A, FRN, 2.381%, 10/20/28 † CYM USD 2,004,900 0.612,000,000 Cent CLO 21 Ltd., 2014-21A, A1B, 144A, FRN, 2.276%, 07/27/26 † USA USD 1,998,180 0.611,880,000 Voya CLO Ltd., 2014-4A, A1, 144A, FRN, 2.381%, 10/14/26 † CYM USD 1,880,677 0.571,835,000 COBALT CMBS Commercial Mortgage Trust, 2007-C2, AMFX, FRN, 5.526%,

04/15/47 † USA USD 1,869,406 0.571,823,767 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DN1, M2, FRN, 3.156%,

01/25/25 † USA USD 1,831,431 0.561,795,000 American Express Credit Account Master Trust, 2014-1, A, FRN, 1.074%,

12/15/21 † USA USD 1,799,224 0.551,770,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA1, M2, FRN, 2.606%,

10/25/27 † USA USD 1,796,036 0.551,700,000 FNMA, 3.50%, 01/01/46 USA USD 1,741,443 0.531,709,300 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN3, M2, FRN, 3.156%,

08/25/24 † USA USD 1,714,425 0.521,610,000 Carlyle Global Market Strategies CLO Ltd., 2014-4A, A1, 144A, FRN, 2.38%,

10/15/26 † USA USD 1,612,141 0.491,500,000 OBP Depositor LLC Trust, 2010-OBP, A, 144A, 4.646%, 07/15/45 USA USD 1,595,330 0.491,550,000 CSAIL Commercial Mortgage Trust, 2015-C1, A4, 3.505%, 04/15/50 USA USD 1,593,575 0.491,500,000 JPMorgan Chase Commercial Mortgage Securities Trust, 2015-JP1, A5, 3.914%,

01/15/49 USA USD 1,583,101 0.481,500,000 Citigroup Commercial Mortgage Trust, 2015-P1, A5, 3.717%, 09/15/48 USA USD 1,566,110 0.481,500,000 Morgan Stanley Bank of America Merrill Lynch Trust, 2015-C23, A4, 3.719%,

07/15/50 USA USD 1,557,286 0.471,500,000 Morgan Stanley Capital I Trust, 2014-CPT, A, 144A, 3.35%, 07/13/29 USA USD 1,550,409 0.471,500,000 Eleven Madison Trust Mortgage Trust, 2015-11MD, A, 144A, FRN, 3.555%,

09/10/35 † USA USD 1,545,305 0.471,500,000 CSAIL Commercial Mortgage Trust, 2015-C2, A4, 3.504%, 06/15/57 USA USD 1,537,331 0.471,500,000 FHLMC Structured Agency Credit Risk Debt Notes, 2014-HQ2, M2, FRN, 2.956%,

09/25/24 † USA USD 1,532,220 0.471,500,000 LB-UBS Commercial Mortgage Trust, 2007-C2, AM, 5.493%, 02/15/40 USA USD 1,512,533 0.461,500,000 BAMLL Commercial Mortgage Securities Trust, 2012-PARK, A, 144A, 2.959%,

12/10/30 USA USD 1,509,224 0.461,500,000 Wells Fargo Commercial Mortgage Trust, 2015-NXS1, A5, 3.148%, 05/15/48 USA USD 1,507,006 0.461,500,000 Discover Card Execution Note Trust, 2013-A6, A6, FRN, 1.154%, 04/15/21 † USA USD 1,506,665 0.461,500,000 Citibank Credit Card Issuance Trust, 2013-A7, A7, FRN, 1.094%, 09/10/20 † USA USD 1,505,947 0.461,500,000 American Express Credit Account Master Trust, A, 2013-I, 1.124%, 02/16/21 USA USD 1,505,169 0.461,500,000 Capital One Multi-Asset Execution Trust, 2014-A5, A5, 1.48%, 07/15/20 USA USD 1,503,217 0.461,500,000 Citibank Credit Card Issuance Trust, 2013-A2, A2, FRN, 1.036%, 05/26/20 † USA USD 1,501,936 0.461,500,000 Chase Issuance Trust, 2012-A10, A10, FRN, 0.964%, 12/16/19 † USA USD 1,501,892 0.461,500,000 Capital One Multi-Asset Execution Trust, 2015-A1, A1, 1.39%, 01/15/21 USA USD 1,499,535 0.461,605,946 ARM Trust, 2005-9, 5A1, FRN, 1.026%, 11/25/35 † USA USD 1,496,544 0.461,500,000 Colony American Homes, 2014-1A, B, 144A, FRN, 2.336%, 05/17/31 † USA USD 1,494,350 0.451,381,568 Conseco Financial Corp., 1998-6, A8, 6.66%, 06/01/30 USA USD 1,480,072 0.451,467,412 SWAY Residential Trust, 2014-1, A, 144A, FRN, 2.036%, 01/17/32 † USA USD 1,469,506 0.451,446,979 Fannie Mae Connecticut Avenue Securities, 2016-C03, 1M1, FRN, 2.756%,

10/25/28 † USA USD 1,466,955 0.451,470,000 Towd Point Mortgage Trust, 2016-5, A1, 144A, FRN, 2.50%, 10/25/56 † USA USD 1,466,113 0.451,417,498 Tricon American Homes Trust, 2015-SFR1, A, 144A, FRN, 1.986%, 05/17/32 † USA USD 1,411,764 0.431,220,406 Greenpoint Manufactured Housing, 1999-5, M1A, FRN, 8.30%, 10/15/26 † USA USD 1,344,484 0.411,360,000 Impac Secured Assets CMN Owner Trust, 2004-4, M1, FRN, 1.521%, 02/25/35 † USA USD 1,341,151 0.411,300,000 Chase Issuance Trust, 2014-A5, A5, FRN, 1.074%, 04/15/21 † USA USD 1,302,644 0.401,300,000 Discover Card Execution Note Trust, 2014-A5, A, 1.39%, 04/15/20 USA USD 1,302,032 0.401,280,048 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQ1, M2, FRN, 2.956%,

03/25/25 † USA USD 1,291,717 0.391,208,926 FHLMC Structured Agency Credit Risk Debt Notes, 2014-HQ3, M2, FRN, 3.406%,

10/25/24 † USA USD 1,219,466 0.371,200,000 FNMA, 3.00%, 01/01/46 USA USD 1,191,334 0.361,200,000 Aegis Asset Backed Securities Trust, 2005-2, M2, FRN, 1.196%, 06/25/35 † USA USD 1,147,618 0.351,100,000 FHLMC, 3.50%, 01/01/46 USA USD 1,125,716 0.341,000,000 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN4, M3, FRN, 5.306%,

10/25/24 † USA USD 1,071,006 0.331,083,273 JP Morgan Mortgage Acquisition Corp., 06-FRE1, A3, 0.946%, 05/25/35 USA USD 1,070,496 0.331,068,029 Towd Point Mortgage Trust, 2016-3, A1, 144A, FRN, 2.25%, 08/25/55 † USA USD 1,061,708 0.321,000,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DN1, M3, FRN, 4.906%,

01/25/25 † USA USD 1,054,562 0.321,139,360 Lehman XS Trust, 2005-4, 1A4, FRN, 1.316%, 10/25/35 † USA USD 1,038,060 0.32


— Franklin Flexible Alpha Bond Fund —




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Asset-Backed Securities (continued)1,028,278 ARES IIIR/IVR CLO Ltd., 2007-3RA, A2, 144A, FRN, 1.10%, 04/16/21 † USA USD 1,028,926 0.31

998,263 Colony Starwood Homes Trust, 2016-1A, A, 144A, FRN, 2.236%, 07/17/33 † USA USD 1,012,833 0.311,000,000 Invitation Homes Trust, 2015-SFR2, C, 144A, FRN, 2.68%, 06/17/32 † USA USD 1,002,654 0.311,000,000 FHLMC, 3.00%, 01/01/46 USA USD 992,378 0.301,000,000 United Airlines Pass Through Trust, first lien, 2016-1, AA, 3.10%, 01/07/30 USA USD 966,250 0.291,015,327 New York Mortgage Trust, 2005-2, A, FRN, 1.086%, 08/25/35 † USA USD 940,206 0.29

878,658 Conseco Financial Corp., 1997-3, A7, FRN, 7.64%, 03/15/28 † USA USD 910,711 0.28823,516 Invitation Homes Trust, 2014-SFR2, A, 144A, FRN, 1.836%, 09/17/31 † USA USD 823,084 0.25823,395 Credit Suisse Mortgage Trust, 2013-IVR3, A2, 144A, FRN, 3.00%, 05/25/43 † USA USD 813,111 0.25800,000 GNMA II, SF, 3.00%, 01/01/46 USA USD 809,503 0.25803,609 Mill City Mortgage Loan Trust, 2016-1, A, 144A, FRN, 2.50%, 04/25/57 † USA USD 801,422 0.24745,000 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN1, M2, FRN, 2.956%,

02/25/24 † USA USD 762,413 0.23757,143 BlueMountain CLO Ltd., 2011-1A, B, 144A, FRN, 2.911%, 08/16/22 † CYM USD 758,521 0.23700,000 FNMA, 4.00%, 01/01/46 USA USD 735,615 0.22600,000 GNMA II, SF, 3.50%, 01/01/46 USA USD 623,327 0.19600,000 Core Industrial Trust, 2015-CALW, A, 144A, 3.04%, 02/10/34 USA USD 612,257 0.19550,000 Banc of America Commercial Mortgage Trust, 2007-3, AM, FRN, 5.602%,

06/10/49 † USA USD 556,580 0.17509,836 Resource Capital Corp. Ltd., 2015-CRE4, A, 144A, FRN, 2.107%, 08/15/32 † USA USD 510,214 0.16500,000 BlueMountain CLO Ltd., 2011-1A, C, 144A, FRN, 3.911%, 08/16/22 † CYM USD 501,660 0.15500,000 Cent CLO 21 Ltd., 2014-21A, B, 144A, FRN, 3.686%, 07/27/26 † USA USD 499,785 0.15440,000 Jay Park CLO Ltd., 2016-1A, A2, 144A, FRN, 2.611%, 10/20/27 † USA USD 439,881 0.13420,000 JPMorgan Chase Commercial Mortgage Securities Trust, 2012-C6, A3, 3.507%,

05/15/45 USA USD 439,406 0.13401,000 Chase Issuance Trust, 2014-A7, A7, 1.38%, 11/15/19 USA USD 401,390 0.12400,000 Voya CLO Ltd., 2015-1A, A1, 144A, FRN, 2.362%, 04/18/27 † USA USD 400,484 0.12360,000 Octagon Investment Partners XVII Ltd., 2013-1A, A1, 144A, FRN, 2.212%,

10/25/25 † CYM USD 360,909 0.11338,427 Fannie Mae Connecticut Avenue Securities, 2015-C02, 2M1, FRN, 1.956%,

05/25/25 † USA USD 338,627 0.10300,000 Burnham Park CLO Ltd., 2016-1A, A, 144A, FRN, 2.318%, 10/20/29 † CYM USD 299,958 0.09250,000 Voya CLO Ltd., 2012-4A, A2R, 144A, FRN, 2.73%, 10/15/28 † CYM USD 250,175 0.08250,000 Flagship CLO VIII Ltd., 2014-8A, A, 144A, FRN, 2.44%, 01/16/26 † CYM USD 249,645 0.08200,000 FHLMC, 4.00%, 01/01/46 USA USD 209,976 0.06190,301 Colony American Homes, 2014-1A, A, 144A, FRN, 2.136%, 05/17/31 † USA USD 190,245 0.06

35,095 Fannie Mae Connecticut Avenue Securities, 2014-C04, 2M1, FRN, 2.856%,11/25/24 † USA USD 35,114 0.01

124,085,048 37.81

Corporate Bonds5,000,000 MGM Resorts International, senior note, 6.75%, 10/01/20 USA USD 5,575,000 1.705,000,000 PHH Corp., senior note, 7.375%, 09/01/19 USA USD 5,262,500 1.605,000,000 XPO CNW Inc., senior bond, 7.25%, 01/15/18 USA USD 5,160,000 1.573,400,000 National Australia Bank Ltd., secured note, Reg S, 1.125%, 11/10/21 AUS GBP 4,194,761 1.283,750,000 Tenet Healthcare Corp., senior note, 5.50%, 03/01/19 USA USD 3,703,125 1.133,400,000 Sanmina Corp., senior note, first lien, 144A, 4.375%, 06/01/19 USA USD 3,502,000 1.072,500,000 Banco Popular Espanol SA, secured note, Reg S, 1.00%, 03/03/22 ESP EUR 2,688,963 0.822,500,000 Safeway Inc., senior bond, 5.00%, 08/15/19 USA USD 2,543,750 0.782,400,000 Beazer Homes USA Inc., senior note, 5.75%, 06/15/19 USA USD 2,496,000 0.762,500,000 Tenet Healthcare Corp., senior note, 6.75%, 02/01/20 USA USD 2,393,750 0.732,200,000 Wells Fargo & Co., senior note, 2.50%, 03/04/21 USA USD 2,183,150 0.672,000,000 Dominion Resources Inc., senior bond, 3.90%, 10/01/25 USA USD 2,042,874 0.622,000,000 American Tower Corp., senior bond, 3.50%, 01/31/23 USA USD 2,006,680 0.612,000,000 Exxon Mobil Corp., senior note, 1.912%, 03/06/20 USA USD 1,997,512 0.612,000,000 The Southern Co., senior bond, 3.25%, 07/01/26 USA USD 1,947,520 0.591,700,000 MassMutual Global Funding II LLC, 144A, 1.55%, 10/11/19 USA USD 1,679,767 0.511,700,000 New York Life Global Funding, secured note, 144A, 1.50%, 10/24/19 USA USD 1,677,096 0.511,600,000 LYB International Finance BV, senior note, 4.00%, 07/15/23 USA USD 1,674,432 0.511,600,000 Imperial Brands Finance PLC, senior note, 144A, 4.25%, 07/21/25 GBR USD 1,651,522 0.501,600,000 Intesa Sanpaolo SpA, senior note, 3.875%, 01/15/19 ITA USD 1,631,496 0.501,600,000 TIAA Asset Management Finance LLC, senior note, 144A, 2.95%, 11/01/19 USA USD 1,627,933 0.501,600,000 Morgan Stanley, senior note, 3.70%, 10/23/24 USA USD 1,619,794 0.491,600,000 The Goldman Sachs Group Inc., senior note, FRN, 2.163%, 09/15/20 † USA USD 1,615,755 0.491,600,000 Morgan Stanley, senior note, 2.65%, 01/27/20 USA USD 1,607,706 0.491,600,000 National Australia Bank of New York, senior note, 1.875%, 07/23/18 AUS USD 1,602,016 0.491,600,000 JPMorgan Chase & Co., senior note, 2.25%, 01/23/20 USA USD 1,595,933 0.491,600,000 Commonwealth Bank of Australia/NY, senior note, 2.30%, 03/12/20 AUS USD 1,591,984 0.491,600,000 JPMorgan Chase & Co., senior bond, 3.30%, 04/01/26 USA USD 1,571,682 0.481,600,000 Citigroup Inc., senior note, 3.40%, 05/01/26 USA USD 1,555,485 0.471,600,000 Capital One Financial Corp., senior note, 3.20%, 02/05/25 USA USD 1,551,512 0.471,100,000 Bank of America Corp., senior bond, 5.50%, 12/04/19 USA GBP 1,527,470 0.471,500,000 Citigroup Inc., senior note, 2.65%, 10/26/20 USA USD 1,501,251 0.461,500,000 Commonwealth Bank of Australia, secured note, 144A, 2.125%, 07/22/20 AUS USD 1,498,185 0.461,500,000 Australia & New Zealand Banking Group Ltd., secured note, 144A, 2.05%, 05/27/20 AUS USD 1,495,560 0.461,500,000 Royal Bank of Canada, secured note, 2.10%, 10/14/20 CAN USD 1,493,359 0.461,500,000 The Toronto-Dominion Bank, secured note, 144A, 2.25%, 03/15/21 CAN USD 1,491,607 0.451,500,000 HSBC USA Inc., senior note, 2.35%, 03/05/20 USA USD 1,487,980 0.451,500,000 National Australia Bank Ltd., secured note, 144A, 2.25%, 03/16/21 AUS USD 1,487,535 0.451,500,000 Westpac Banking Corp., secured note, 144A, 2.10%, 02/25/22 AUS USD 1,482,637 0.451,500,000 Ford Motor Credit Co. LLC, senior note, 2.459%, 03/27/20 USA USD 1,480,905 0.45






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Corporate Bonds (continued)1,500,000 Jackson National Life Global Funding, secured note, 144A, 2.25%, 04/29/21 USA USD 1,478,892 0.451,500,000 Kookmin Bank, secured note, 144A, 2.25%, 02/03/21 KOR USD 1,475,235 0.451,500,000 Bank of Nova Scotia, secured note, 1.875%, 04/26/21 CAN USD 1,464,276 0.451,300,000 Industrial and Commercial Bank of China Ltd./New York, 3.231%, 11/13/19 CHN USD 1,332,597 0.411,300,000 State Grid Overseas Investment 2014 Ltd., senior note, 144A, 2.75%, 05/07/19 CHN USD 1,317,657 0.401,300,000 Three Gorges Finance I Cayman Islands Ltd., senior note, 144A, 3.70%, 06/10/25 CHN USD 1,307,215 0.401,300,000 Sinopec Group Overseas Development 2015 Ltd., senior note, 144A, 2.50%,

04/28/20 CHN USD 1,292,375 0.391,200,000 Telefonica Emisiones S.A.U., senior bond, 5.134%, 04/27/20 ESP USD 1,285,680 0.391,300,000 AIG Global Funding, secured note, 144A, 1.90%, 10/06/21 USA USD 1,249,950 0.381,200,000 The Kroger Co., senior note, 3.40%, 04/15/22 USA USD 1,223,436 0.371,200,000 Juniper Networks Inc., senior note, 3.125%, 02/26/19 USA USD 1,219,512 0.371,200,000 Kraft Heinz Foods Co., senior note, 3.50%, 07/15/22 USA USD 1,218,757 0.371,200,000 Time Warner Inc., senior bond, 3.40%, 06/15/22 USA USD 1,207,230 0.371,200,000 Fiserv Inc., senior note, 2.70%, 06/01/20 USA USD 1,206,068 0.371,200,000 Baxalta Inc., senior note, 2.875%, 06/23/20 USA USD 1,199,982 0.371,200,000 AIG Global Funding, secured note, 144A, 2.70%, 12/15/21 USA USD 1,197,071 0.361,100,000 FedEx Corp., senior bond, 1.625%, 01/11/27 USA EUR 1,178,317 0.361,000,000 Delphi Corp., senior bond, 4.15%, 03/15/24 GBR USD 1,031,144 0.311,000,000 Transurban Finance Co. Pty. Ltd., senior secured bond, 144A, 4.125%, 02/02/26 AUS USD 1,018,391 0.311,000,000 Anheuser-Busch InBev Finance Inc., senior bond, 3.65%, 02/01/26 BEL USD 1,015,532 0.311,000,000 Biogen Inc., senior note, 2.90%, 09/15/20 USA USD 1,012,881 0.311,000,000 Enterprise Products Operating LLC, senior note, 3.35%, 03/15/23 USA USD 1,012,721 0.311,000,000 Verizon Communications Inc., senior note, 2.625%, 02/21/20 USA USD 1,009,702 0.311,000,000 Universal Health Services Inc., first lien, 144A, 3.75%, 08/01/19 USA USD 1,008,750 0.311,000,000 Marriott International Inc., senior note, 2.875%, 03/01/21 USA USD 1,004,647 0.311,000,000 Stryker Corp., senior note, 2.00%, 03/08/19 USA USD 1,000,787 0.301,000,000 Walgreen Co., senior bond, 3.10%, 09/15/22 USA USD 1,000,040 0.301,000,000 Actavis Inc., senior note, 3.25%, 10/01/22 USA USD 996,104 0.301,000,000 AT&T Inc., senior note, 2.45%, 06/30/20 USA USD 993,151 0.30

900,000 United Technologies Corp., senior note, 1.125%, 12/15/21 USA EUR 981,942 0.30900,000 The Goldman Sachs Group Inc., senior note, 3.75%, 05/22/25 USA USD 902,764 0.28900,000 Anadarko Petroleum Corp., senior bond, 3.45%, 07/15/24 USA USD 883,871 0.27900,000 Wells Fargo & Co., senior note, 3.00%, 04/22/26 USA USD 858,628 0.26800,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured note, first lien,

144A, 3.48%, 06/01/19 USA USD 816,908 0.25800,000 Jackson National Life Global Funding, secured note, 144A, 2.10%, 10/25/21 USA USD 780,440 0.24700,000 Bankinter SA, senior note, Reg S, 1.75%, 06/10/19 ESP EUR 766,653 0.23600,000 JPMorgan Chase & Co., senior note, 2.40%, 06/07/21 USA USD 594,330 0.18500,000 WMG Acquisition Corp., secured note, 144A, 4.125%, 11/01/24 USA EUR 545,708 0.17500,000 HSBC Holdings PLC, senior note, 3.60%, 05/25/23 GBR USD 503,050 0.15500,000 The Procter & Gamble Co., senior note, 1.70%, 11/03/21 USA USD 491,299 0.15450,000 Sprint Communications Inc., senior note, 144A, 7.00%, 03/01/20 USA USD 489,375 0.15450,000 HCA Inc., senior secured bond, first lien, 5.875%, 03/15/22 USA USD 486,000 0.15450,000 Sealed Air Corp., senior bond, 144A, 5.25%, 04/01/23 USA USD 469,125 0.14300,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 4.25%,

07/01/20 NLD USD 308,258 0.09300,000 Teva Pharmaceutical Finance Netherlands IV BV, senior note, 0.50%, 07/28/22 ISR CHF 297,422 0.09300,000 NOVA Chemicals Corp., senior bond, 144A, 5.00%, 05/01/25 CAN USD 294,657 0.09235,000 Calpine Corp., senior secured bond, 144A, 7.875%, 01/15/23 USA USD 245,869 0.07200,000 Western Digital Corp., senior secured note, 144A, 7.375%, 04/01/23 USA USD 220,500 0.07200,000 Teva Pharmaceutical Finance Netherlands II BV, senior note, Reg S, 0.375%,

07/25/20 ISR EUR 209,183 0.06

132,002,269 40.22

Government and Municipal Bonds570,000,000 Government of Japan, senior note, 0.10%, 12/15/18 JPN JPY 4,904,297 1.50570,000,000 Government of Japan, senior note, 0.10%, 11/15/18 JPN JPY 4,903,053 1.49

3,155,664 U.S. Treasury Note, Index Linked, 0.125%, 07/15/24 USA USD 3,102,330 0.953,057,762 U.S. Treasury Note, Index Linked, 0.375%, 07/15/25 USA USD 3,042,390 0.932,530,000 California State GO, Refunding, 5.00%, 09/01/29 USA USD 3,012,117 0.922,340,000 University of Texas Revenue, Series J, 5.00%, 08/15/25 USA USD 2,826,884 0.862,250,000 New York State Dormitory Authority State Personal Income Tax Revenue, General

Purpose, Refunding, Series A, 5.00%, 02/15/25 USA USD 2,633,490 0.801,700,000 Clark County School District GO, Refunding, Series D, 5.00%, 06/15/23 USA USD 1,983,407 0.601,240,000 Minnesota State GO, Refunding, Series D, 5.00%, 08/01/25 USA USD 1,507,716 0.461,300,000 The Export-Import Bank of Korea, senior note, 2.25%, 01/21/20 KOR USD 1,290,191 0.39

510,000 Denver City and County Airport System Revenue, Refunding, Series A, 5.00%,11/15/25 USA USD 603,641 0.18

7,720,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 587,345 0.18565,000 Providence St. Joseph Health Obligated Group, 2.746%, 10/01/26 USA USD 535,534 0.16

2,160,000 Government of Malaysia, senior bond, 4.378%, 11/29/19 MYS MYR 492,548 0.151,300,000 Government of Malaysia, 3.80%, 08/17/23 MYS MYR 285,032 0.09






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Government and Municipal Bonds (continued)75,000 Texas State GO, Transportation Commission-Highway Improvement, Series A, 5.00%,

04/01/21 USA USD 84,816 0.03

31,794,791 9.69

TOTAL BONDS 287,882,108 87.72









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819,356 Nakilat Inc., second lien, Reg S, 6.267%, 12/31/33 QAT USD 930,555 1.71650,000 Ruwais Power Co. PJSC, Reg S, 6.00%, 08/31/36 ARE USD 742,001 1.37106,800 Ras Laffan Liquefied Natural Gas Co. Ltd. II, secured bond, Reg S, 5.298%, 09/30/20 QAT USD 112,244 0.21

1,784,800 3.29

Corporate Bonds2,300,000 Aabar Investments PJSC, senior note, cvt., 0.50%, 03/27/20 ARE EUR 2,035,887 3.752,000,000 Abu Dhabi National Energy Co. PJSC, senior bond, Reg S, 3.625%, 01/12/23 ARE USD 1,992,710 3.671,750,000 Equate Petrochemical BV, senior note, Reg S, 4.25%, 11/03/26 KWT USD 1,678,801 3.091,500,000 Kuwait Projects Co., senior note, Reg S, 5.00%, 03/15/23 KWT USD 1,540,620 2.841,400,000 DP World Ltd., Reg S, 6.85%, 07/02/37 ARE USD 1,499,043 2.761,500,000 Abu Dhabi National Energy Co. PJSC, senior note, Reg S, 3.875%, 05/06/24 ARE USD 1,495,372 2.751,150,000 MAF Global Securities Ltd., sub. bond, Reg S, 7.125% to 10/29/18, FRN thereafter,

Perpetual ARE USD 1,216,413 2.241,200,000 Abu Dhabi National Energy Co. PJSC, senior note, Reg S, 4.375%, 06/22/26 ARE USD 1,211,898 2.231,200,000 Saudi Electricity Global Sukuk Co. 3, senior bond, Reg S, 5.50%, 04/08/44 SAU USD 1,203,210 2.211,155,000 Alternatifbank AS, senior note, Reg S, 3.125%, 07/22/19 TUR USD 1,141,262 2.101,050,000 GEMS MEA Sukuk Ltd., junior sub. note, Reg S, 12.00% to 11/21/18, FRN thereafter,

Perpetual ARE USD 1,128,750 2.081,072,000 NBK Tier 1 Financing Ltd., junior sub. bond, Reg S, 5.75% to 04/09/21, FRN thereafter,

Perpetual KWT USD 1,108,180 2.041,050,000 BOS Funding Ltd., senior note, Reg S, 3.374%, 06/08/20 ARE USD 1,043,438 1.921,000,000 Etihad Airways PJSC, senior note, Reg S, 3.86%, 11/30/21 ARE USD 1,012,675 1.861,000,000 Ahli United Bank BSC, junior sub. bond, Reg S, 6.875% to 04/29/20, FRN thereafter,

Perpetual BHR USD 1,009,415 1.861,000,000 National Bank of Abu Dhabi PJSC, cvt., senior note, Reg S, 1.00%, 03/12/18 ARE USD 997,500 1.841,000,000 Emaar Sukuk Ltd., senior note, Reg S, 3.635%, 09/15/26 ARE USD 961,250 1.77

800,000 JAFZ Sukuk 2019 Ltd., senior note, Reg S, 7.00%, 06/19/19 ARE USD 878,392 1.62850,000 EIB Sukuk Ltd., senior note, Reg S, 3.542%, 05/31/21 ARE USD 857,140 1.58600,000 DP World Ltd., cvt., senior note, Reg S, 1.75%, 06/19/24 ARE USD 592,785 1.09550,000 MAF Global Securities Ltd., senior note, Reg S, 4.75%, 05/07/24 ARE USD 569,327 1.05550,000 Dar Al-Arkan Sukuk Co. Ltd., senior note, Reg S, 5.75%, 05/24/18 SAU USD 541,368 1.00550,000 Qtel International Finance Ltd., Reg S, 3.875%, 01/31/28 QAT USD 532,249 0.98530,000 DIB Sukuk Co. Ltd., senior note, Reg S, 2.921%, 06/03/20 ARE USD 524,700 0.96475,000 DIB Sukuk Co. Ltd., senior note, Reg S, 3.60%, 03/30/21 ARE USD 479,052 0.88400,000 Emirates NBD PJSC, sub. note, Reg S, FRN, 4.437%, 11/27/23 † ARE USD 405,187 0.74400,000 Saudi Electricity Global Sukuk Co. 2, senior bond, Reg S, 5.06%, 04/08/43 SAU USD 388,572 0.71250,000 IPIC GMTN Ltd., Reg S, 5.00%, 11/15/20 ARE USD 270,688 0.50250,000 National Bank of Abu Dhabi, junior sub. bond, Reg S, 5.25% to 06/17/20, FRN thereafter,

Perpetual ARE USD 253,125 0.47

28,569,009 52.59

Government and Municipal Bonds3,000,000 Government of Qatar, senior note, Reg S, 3.25%, 06/02/26 QAT USD 2,900,655 5.343,000,000 Saudi Government International Bond, senior bond, Reg S, 4.50%, 10/26/46 SAU USD 2,876,250 5.302,500,000 Government of Qatar, senior bond, Reg S, 4.625%, 06/02/46 QAT USD 2,504,625 4.611,800,000 Government of Bahrain, Reg S, 6.00%, 09/19/44 BHR USD 1,476,855 2.721,100,000 Government of Qatar, senior bond, Reg S, 6.40%, 01/20/40 QAT USD 1,376,738 2.531,080,000 CBB International Sukuk Co. SPC, senior note, Reg S, 5.624%, 02/12/24 BHR USD 1,110,564 2.041,100,000 Abu Dhabi Government International Bond, senior note, Reg S, 3.125%, 05/03/26 ARE USD 1,081,151 1.991,000,000 Government of Bahrain, senior note, Reg S, 7.00%, 01/26/26 BHR USD 1,046,250 1.931,000,000 Oman Government International Bond, senior note, Reg S, 4.75%, 06/15/26 OMN USD 969,005 1.78

900,000 Saudi Government International Bond, senior note, Reg S, 3.25%, 10/26/26 SAU USD 853,875 1.57400,000 Government of Qatar, senior bond, Reg S, 9.75%, 06/15/30 QAT USD 619,562 1.14300,000 Government of Bahrain, senior note, Reg S, 6.125%, 08/01/23 BHR USD 313,125 0.58

17,128,655 31.53

Securities Maturing Within One Year1,462,000 Dana Gas Sukuk Ltd., cvt., senior note, Reg S, 7.00%, 10/31/17 ARE USD 1,337,730 2.46

750,000 Dubai Holding Commercial Operations Group, senior note, 6.00%, 02/01/17 ARE GBP 925,468 1.70

2,263,198 4.16

TOTAL BONDS 49,745,662 91.57





— Franklin GCC Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


2,388,772 FHLMC, 3.00%, 09/01/46 USA USD 2,373,620 2.911,564,135 FHLMC, 3.50%, 09/01/46 USA USD 1,602,621 1.971,458,670 FHLMC, 4.00%, 08/01/46 USA USD 1,533,010 1.88

380,889 GNMA II, SF, 3.50%, 08/20/46 USA USD 396,259 0.48377,080 GNMA II, SF, 3.00%, 08/20/46 USA USD 382,196 0.47

6,287,706 7.71

Corporate Bonds700,000 BMW Finance NV, senior note, Reg S, 0.75%, 04/15/24 DEU EUR 742,145 0.91650,000 Anheuser-Busch InBev SA/NV, senior note, Reg S, 1.50%, 03/17/25 BEL EUR 712,665 0.87650,000 Johnson & Johnson, senior note, 0.25%, 01/20/22 USA EUR 686,173 0.84600,000 Ford Motor Credit Co. LLC, senior note, 3.336%, 03/18/21 USA USD 604,248 0.74550,000 Wal-Mart Stores Inc., senior note, 1.95%, 12/15/18 USA USD 555,275 0.68515,000 JPMorgan Chase & Co., senior note, 4.25%, 10/15/20 USA USD 544,870 0.67510,000 Merrill Lynch & Co. Inc., senior note, 6.875%, 04/25/18 USA USD 542,180 0.67480,000 The Goldman Sachs Group Inc., senior note, 5.75%, 01/24/22 USA USD 539,709 0.66550,000 HSBC Holdings PLC, senior note, 2.65%, 01/05/22 GBR USD 537,460 0.66530,000 Simon Property Group LP, senior bond, 3.375%, 10/01/24 USA USD 535,524 0.66525,000 Gilead Sciences Inc., senior bond, 3.50%, 02/01/25 USA USD 530,688 0.65530,000 Toyota Motor Credit Corp., senior note, 1.45%, 01/12/18 USA USD 530,042 0.65515,000 Aflac Inc., senior bond, 3.625%, 11/15/24 USA USD 529,920 0.65550,000 CK Hutchison International 16 Ltd., senior note, 144A, 1.875%, 10/03/21 HKG USD 526,982 0.65475,000 Verizon Communications Inc., senior note, 5.15%, 09/15/23 USA USD 525,430 0.64415,000 21st Century Fox America Inc., senior bond, 6.40%, 12/15/35 USA USD 496,506 0.61490,000 GE Capital International Funding Co., senior note, 2.342%, 11/15/20 USA USD 489,145 0.60420,000 WPP Finance 2010, senior note, 3.75%, 09/19/24 GBR USD 422,086 0.52415,000 New York Life Global Funding, secured note, 144A, 1.95%, 02/11/20 USA USD 411,967 0.51415,000 Burlington Northern Santa Fe LLC, senior bond, 3.90%, 08/01/46 USA USD 405,918 0.50330,000 Citigroup Inc., senior note, 2.70%, 03/30/21 USA USD 329,292 0.40175,000 Citigroup Inc., senior bond, 8.125%, 07/15/39 USA USD 260,446 0.32230,000 State Grid Overseas Invesments 2016 Ltd., senior note, 144A, 2.125%, 05/18/21 CHN USD 223,116 0.27200,000 Saudi Electricity Global Sukuk Co. 2, 144A, 5.06%, 04/08/43 SAU USD 194,286 0.24185,000 General Motors Co., senior bond, 4.875%, 10/02/23 USA USD 194,005 0.24180,000 Bank of Montreal, senior note, 1.45%, 04/09/18 CAN USD 179,584 0.22170,000 ING Bank NV, 144A, 1.80%, 03/16/18 NLD USD 169,826 0.21100,000 Heathrow Funding Ltd., senior secured bond, 144A, 4.875%, 07/15/23 GBR USD 107,266 0.13

55,000 Mitsui Sumitomo Insurance Co. Ltd., junior sub. note, 144A, 7.00% to 03/15/22, FRNthereafter, 03/15/72 JPN USD 62,356 0.08

60,000 Toll Brothers Finance Corp., senior bond, 4.375%, 04/15/23 USA USD 60,075 0.0755,000 Navient Corp., senior note, 4.875%, 06/17/19 USA USD 57,062 0.0750,000 CIT Group Inc., senior bond, 5.00%, 08/01/23 USA USD 51,750 0.0645,000 JBS USA LLC/Finance Inc., senior note, 144A, 8.25%, 02/01/20 USA USD 46,350 0.0620,000 Aviation Capital Group Corp., 144A, 6.75%, 04/06/21 USA USD 23,125 0.0314,000 Calpine Corp., senior secured bond, 144A, 7.875%, 01/15/23 USA USD 14,648 0.02

12,842,120 15.76

Government and Municipal Bonds5,000,000 Government of France, Reg S, 1.00%, 11/25/25 FRA EUR 5,482,277 6.734,061,591 U.S. Treasury Note, Index Linked, 0.25%, 01/15/25 USA USD 3,996,427 4.90

14,500,000 Government of Poland, 2.50%, 07/25/26 POL PLN 3,154,945 3.873,000,000 U.S. Treasury Note, 1.375%, 09/30/18 USA USD 3,011,223 3.703,100,000 Queensland Treasury Corp., senior bond, Reg S, 5.75%, 07/22/24 AUS AUD 2,664,832 3.272,500,000 U.S. Treasury Note, 2.625%, 01/31/18 USA USD 2,544,683 3.121,700,000 Government of Spain, senior bond, Reg S, 5.15%, 10/31/28 ESP EUR 2,474,006 3.043,400,000 Queensland Treasury Corp., senior bond, Reg S, 3.25%, 07/21/26 AUS AUD 2,468,990 3.032,600,000 Government of Canada, 2.75%, 06/01/22 CAN CAD 2,087,609 2.561,650,000 United Kingdom Treasury Note, Reg S, 1.25%, 07/22/18 GBR GBP 2,070,561 2.54

400,000 Government of Mexico, 8.00%, 12/07/23 MEX MXN 2,004,909 2.468,000,000 Government of Poland, 3.25%, 07/25/19 POL PLN 1,956,713 2.401,600,000 Government of Spain, senior bond, Reg S, 2.15%, 10/31/25 ESP EUR 1,808,732 2.221,400,000 Italy Treasury Bond, Reg S, 3.50%, 03/01/30 ITA EUR 1,704,464 2.09

160,000,000 Development Bank of Japan, senior bond, 2.30%, 03/19/26 JPN JPY 1,643,095 2.02900,000 Italy Treasury Bond, senior bond, Reg S, 5.00%, 08/01/34 ITA EUR 1,295,824 1.59750,000 Government of Spain, senior bond, Reg S, 5.15%, 10/31/44 ESP EUR 1,193,688 1.46

1,095,000 FNMA, 1.75%, 09/12/19 USA USD 1,103,626 1.351,075,000 U.S. Treasury Bond, 3.125%, 08/15/44 USA USD 1,085,861 1.331,000,000 Government of Belgium, senior note, Reg S, 79, 0.20%, 10/22/23 BEL EUR 1,065,410 1.311,045,000 U.S. Treasury Note, 2.25%, 11/15/25 USA USD 1,030,304 1.26

800,000 U.S. Treasury Note, 1.75%, 05/15/23 USA USD 778,403 0.96745,000 Province of Quebec, 2.50%, 04/20/26 CAN USD 710,896 0.87715,000 U.S. Treasury Note, 2.25%, 11/15/24 USA USD 709,795 0.87

65,000,000 Development Bank of Japan, 1.70%, 09/20/22 JPN JPY 608,162 0.75605,000 Saudi Government International Bond, senior note, 144A, 2.375%, 10/26/21 SAU USD 588,741 0.72500,000 Government of Germany, Reg S, 1.50%, 02/15/23 DEU EUR 586,039 0.72570,000 Government of Canada, 1.125%, 03/19/18 CAN USD 569,359 0.70445,000 Government of Chile, senior note, 3.125%, 01/21/26 CHL USD 441,162 0.54200,000 U.S. Treasury Bond, 5.375%, 02/15/31 USA USD 265,985 0.33120,000 Florida State Hurricane Catastrophe Fund Finance Corp. Revenue, Series A, 2.995%,

07/01/20 USA USD 123,533 0.15


— Franklin Global Aggregate Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)80,000 California State GO, Build America Bonds, 7.30%, 10/01/39 USA USD 113,302 0.1470,000 Corp Andina De Fomento, 4.375%, 06/15/22 SP USD 74,594 0.0965,000 JobsOhio Beverage System Statewide Liquor Profits Revenue, Series B, 4.532%,

01/01/35 USA USD 69,673 0.0960,000 Government of Poland, senior note, 5.125%, 04/21/21 POL USD 65,610 0.0855,000 Government of South Africa, 5.50%, 03/09/20 ZAF USD 58,372 0.0730,000 Illinois State GO, 5.10%, 06/01/33 USA USD 26,545 0.03

51,638,350 63.36

Securities Maturing Within One Year3,950,000 U.S. Treasury Note, 0.50%, 04/30/17 USA USD 3,949,929 4.852,680,000 U.S. Treasury Note, FRN, 0.633%, 07/31/17 † USA USD 2,681,766 3.29

415,000 Comcast Corp., senior note, 6.30%, 11/15/17 USA USD 432,224 0.53400,000 Government of Qatar, senior note, Reg S, 3.125%, 01/20/17 QAT USD 400,426 0.49155,000 Royal Bank of Canada, senior note, 1.20%, 01/23/17 CAN USD 155,021 0.19

50,000 Bank of America Corp., 3.875%, 03/22/17 USA USD 50,286 0.06

7,669,652 9.41

TOTAL BONDS 78,437,828 96.24





— Franklin Global Aggregate Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


200,000 Anheuser-Busch InBev SA/NV, senior note, Reg S, 1.50%, 03/17/25 BEL EUR 219,282 1.71200,000 BMW Finance NV, senior note, Reg S, 0.75%, 04/15/24 DEU EUR 212,041 1.66200,000 Johnson & Johnson, senior note, 0.25%, 01/20/22 USA EUR 211,130 1.65200,000 Ford Motor Credit Co. LLC, senior note, 3.336%, 03/18/21 USA USD 201,416 1.57200,000 GE Capital International Funding Co., senior note, 2.342%, 11/15/20 USA USD 199,651 1.56100,000 Wal-Mart Stores Inc., senior note, 1.95%, 12/15/18 USA USD 100,959 0.79100,000 Toyota Motor Credit Corp., senior note, 1.45%, 01/12/18 USA USD 100,008 0.78100,000 Citigroup Inc., senior note, 2.70%, 03/30/21 USA USD 99,786 0.78100,000 Bank of Montreal, senior note, 1.45%, 04/09/18 CAN USD 99,769 0.78100,000 Burlington Northern Santa Fe LLC, senior bond, 3.90%, 08/01/46 USA USD 97,812 0.76

95,000 Aflac Inc., senior bond, 3.625%, 11/15/24 USA USD 97,752 0.7665,000 Citigroup Inc., senior bond, 8.125%, 07/15/39 USA USD 96,737 0.7695,000 Gilead Sciences Inc., senior bond, 3.50%, 02/01/25 USA USD 96,029 0.7595,000 Simon Property Group LP, senior bond, 3.375%, 10/01/24 USA USD 95,990 0.7580,000 21st Century Fox America Inc., senior bond, 6.40%, 12/15/35 USA USD 95,712 0.7590,000 Merrill Lynch & Co. Inc., senior note, 6.875%, 04/25/18 USA USD 95,679 0.7585,000 The Goldman Sachs Group Inc., senior note, 5.75%, 01/24/22 USA USD 95,573 0.7595,000 WPP Finance 2010, senior note, 3.75%, 09/19/24 GBR USD 95,472 0.7590,000 JPMorgan Chase & Co., senior note, 4.25%, 10/15/20 USA USD 95,220 0.7485,000 Verizon Communications Inc., senior note, 5.15%, 09/15/23 USA USD 94,024 0.73

2,500,042 19.53

Government and Municipal Bonds70,000,000 Development Bank of Japan, senior bond, 2.30%, 03/19/26 JPN JPY 718,854 5.62

640,000 U.S. Treasury Note, FRN, 0.686%, 10/31/18 † USA USD 640,655 5.00540,865 U.S. Treasury Note, Index Linked, 0.25%, 01/15/25 USA USD 532,188 4.16500,000 U.S. Treasury Note, 1.75%, 05/15/23 USA USD 486,502 3.80600,000 Government of Canada, 2.75%, 06/01/22 CAN CAD 481,756 3.76550,000 Queensland Treasury Corp., senior bond, Reg S, 5.75%, 07/22/24 AUS AUD 472,793 3.69300,000 Government of Spain, senior bond, Reg S, 5.15%, 10/31/28 ESP EUR 436,589 3.41350,000 Italy Treasury Bond, Reg S, 3.50%, 03/01/30 ITA EUR 426,116 3.33380,000 U.S. Treasury Note, 3.50%, 05/15/20 USA USD 403,746 3.15320,000 United Kingdom Treasury Note, Reg S, 1.25%, 07/22/18 GBR GBP 401,563 3.14

1,800,000 Government of Poland, 2.50%, 07/25/26 POL PLN 391,648 3.06340,000 Government of France, Reg S, 1.00%, 11/25/25 FRA EUR 372,795 2.91

60,000 Government of Mexico, 8.00%, 12/07/23 MEX MXN 300,736 2.351,200,000 Government of Poland, 4.00%, 10/25/23 POL PLN 298,739 2.33

400,000 Queensland Treasury Corp., senior bond, Reg S, 3.25%, 07/21/26 AUS AUD 290,469 2.27260,000 Province of Quebec, 2.50%, 04/20/26 CAN USD 248,098 1.94200,000 Government of Germany, Reg S, 1.50%, 02/15/23 DEU EUR 234,415 1.83200,000 Government of Spain, senior bond, Reg S, 2.15%, 10/31/25 ESP EUR 226,092 1.77220,000 Government of Canada, 1.125%, 03/19/18 CAN USD 219,753 1.72210,000 U.S. Treasury Bond, 3.125%, 08/15/44 USA USD 212,122 1.66150,000 U.S. Treasury Bond, 5.375%, 02/15/31 USA USD 199,489 1.56150,000 Italy Treasury Bond, senior bond, 4.25%, 09/01/19 ITA EUR 175,586 1.37700,000 Government of Poland, 3.25%, 07/25/19 POL PLN 171,212 1.34

80,000 Government of Spain, senior bond, Reg S, 5.15%, 10/31/44 ESP EUR 127,327 0.9960,000 California State GO, Build America Bonds, 7.30%, 10/01/39 USA USD 84,977 0.6680,000 Florida State Hurricane Catastrophe Fund Finance Corp. Revenue, Series A, 2.995%,

07/01/20 USA USD 82,355 0.6425,000 Illinois State GO, 5.10%, 06/01/33 USA USD 22,121 0.1715,000 JobsOhio Beverage System Statewide Liquor Profits Revenue, Series B, 4.532%,

01/01/35 USA USD 16,078 0.13

8,674,774 67.76

Securities Maturing Within One Year100,000 Comcast Corp., senior note, 6.30%, 11/15/17 USA USD 104,150 0.82

TOTAL BONDS 11,278,966 88.11





— Franklin Global Aggregate Investment Grade Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


50,000 Arconic Inc., 5.375%, cvt. pfd. USA USD 1,507,500 1.76

Electric Utilities17,500 Great Plains Energy Inc., 7.00%, cvt. pfd. USA USD 885,500 1.03

Industrial Machinery13,203 Stanley Black & Decker Inc. USA USD 1,514,252 1.7625,000 Rexnord Corp., 5.75%, cvt. pfd. USA USD 1,225,000 1.43

2,739,252 3.19

Integrated Telecommunication Services12,500 Frontier Communications Corp., 11.125%, cvt. pfd. USA USD 888,500 1.04

Multi-Utilities23,000 Black Hills Corp., 7.75%, cvt. pfd. USA USD 1,573,890 1.83

Packaged Foods & Meats21,000 Tyson Foods Inc., 4.75%, cvt. pfd. USA USD 1,420,650 1.66

Pharmaceuticals2,025 Allergan PLC, 5.50%, cvt. pfd. USA USD 1,543,982 1.80

Wireless Telecommunication Services20,200 T-Mobile U.S. Inc., 5.50%, cvt. pfd. USA USD 1,907,688 2.22

TOTAL SHARES 12,466,962 14.53


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESEnvironmental & Facilities Services

18,000 Stericycle Inc., 5.25%, cvt. pfd. USA USD 1,138,860 1.33

Internet Software & Services15,000 Mandatory Exchangeable Trust, 5.75%, cvt. pfd., 144A CHN USD 1,640,625 1.91

Oil & Gas Equipment & Services50,000 McDermott International Inc., 6.25%, cvt. pfd. USA USD 1,201,500 1.40

Packaged Foods & Meats9,000 Post Holdings Inc., 2.50%, cvt. pfd. USA USD 1,371,937 1.60

Pharmaceuticals2,050 Teva Pharmaceutical Industries Ltd., 7.00%, cvt. pfd. ISR USD 1,322,250 1.54



875,000 Take-Two Interactive Software Inc., cvt., senior note, 1.00%, 07/01/18 USA USD 2,006,484 2.341,110,000 Intel Corp., cvt., junior sub. bond, 3.25%, 08/01/39 USA USD 1,959,156 2.281,700,000 Bayer Capital Corp BV, cvt., junior sub. note, 144A, 5.625%, 11/22/19 DEU EUR 1,954,824 2.281,500,000 Microchip Technology Inc., cvt., senior sub. bond, 1.625%, 02/15/25 USA USD 1,950,000 2.271,000,000 Adidas AG, cvt., senior note, Reg S, 0.25%, 06/14/19 DEU EUR 1,937,994 2.261,710,000 Cemex SAB de CV, cvt., sub. note, 3.75%, 03/15/18 MEX USD 1,926,956 2.251,750,000 Liberty Media Corp., cvt., senior note, 1.375%, 10/15/23 USA USD 1,887,813 2.201,600,000 Qiagen NV, cvt., senior note, Reg S, 0.875%, 03/19/21 NLD USD 1,872,000 2.181,800,000 Blackhawk Network Holdings Inc., cvt., senior note, 144A, 1.50%, 01/15/22 USA USD 1,854,000 2.161,600,000 NXP Semiconductors NV, cvt., senior note, 1.00%, 12/01/19 NLD USD 1,828,000 2.131,430,000 The Priceline Group Inc., cvt., senior note, 0.35%, 06/15/20 USA USD 1,827,719 2.131,800,000 Vipshop Holdings Ltd., cvt., senior note, 1.50%, 03/15/19 CHN USD 1,802,250 2.101,500,000 ServiceNow Inc., cvt., zero cpn., 11/01/18 USA USD 1,770,000 2.06

15,000,000 Industrivarden AB, cvt., senior note, Reg S, zero cpn., 05/15/19 SWE SEK 1,767,718 2.061,500,000 BioMarin Pharmaceutical Inc., cvt., senior sub. note, 1.50%, 10/15/20 USA USD 1,765,313 2.061,735,000 Shutterfly Inc., cvt., 0.25%, 05/15/18 USA USD 1,764,278 2.061,700,000 America Movil SAB de CV, cvt., senior note, Reg S, zero cpn., 05/28/20 MEX EUR 1,736,196 2.021,770,000 Brookdale Senior Living Inc., cvt., senior note, 2.75%, 06/15/18 USA USD 1,729,069 2.021,600,000 Grand City Properties SA, cvt., senior note, Reg S, 0.25%, 03/02/22 DEU EUR 1,723,108 2.011,600,000 Steinhoff Finance Holdings NV, cvt., senior note, Reg S, 1.25%, 08/11/22 ZAF EUR 1,693,705 1.971,650,000 Yahoo! Inc., cvt., zero cpn., 12/01/18 USA USD 1,638,656 1.911,500,000 Liberty Interactive LLC, cvt., senior bond, 144A, 1.75%, 09/30/46 USA USD 1,617,180 1.891,500,000 Liberty Media Corp., cvt., senior bond, 144A, 2.25%, 09/30/46 USA USD 1,588,125 1.851,369,000 Ctrip.com International Ltd., cvt., senior note, 1.25%, 10/15/18 CHN USD 1,586,260 1.851,500,000 Zillow Group Inc., cvt., senior note, 144A, 2.00%, 12/01/21 USA USD 1,547,813 1.80

829,000 Proofpoint Inc., cvt., senior note, 1.25%, 12/15/18 USA USD 1,517,588 1.771,250,000 Red Hat Inc., cvt., senior note, 0.25%, 10/01/19 USA USD 1,464,844 1.711,250,000 Dish Network Corp., cvt., senior bond, 144A, 3.375%, 08/15/26 USA USD 1,428,906 1.671,283,500 Workday Inc., cvt., senior note, 1.50%, 07/15/20 USA USD 1,421,476 1.661,200,000 Salesforce.com Inc., cvt., senior note, 0.25%, 04/01/18 USA USD 1,400,250 1.631,050,000 Palo Alto Networks Inc., cvt., zero cpn., 07/01/19 USA USD 1,336,781 1.561,000,000 Nuvasive Inc., cvt., senior note, 144A, 2.25%, 03/15/21 USA USD 1,274,375 1.49


— Franklin Global Convertible Securities Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)1,000,000 Aabar Investments PJSC, cvt., Reg S, 1.00%, 03/27/22 ARE EUR 809,621 0.94

400,000 Inphi Corp., cvt., senior note, 144A, 0.75%, 09/01/21 USA USD 428,000 0.501,000,000 Novavax Inc., cvt., senior note, 144A, 3.75%, 02/01/23 USA USD 422,500 0.492,100,000 Abengoa SA, cvt., senior note, Reg S, 6.25%, 01/17/19 * ESP EUR 99,433 0.12

56,338,391 65.68

Securities Maturing Within One Year1,750,000 Siemens Financieringsmaatschappij NV, cvt., senior note, Reg S, 1.05%, 08/16/17 DEU USD 1,988,875 2.321,590,000 Bottomline Technologies Inc., cvt., senior note, 1.50%, 12/01/17 USA USD 1,642,669 1.92

420,000 Xilinx Inc., cvt., senior note, 2.625%, 06/15/17 USA USD 884,625 1.03

4,516,169 5.27

TOTAL BONDS 60,854,560 70.95



* These Bonds are currently in default


— Franklin Global Convertible Securities Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAutomobiles & Components

1,046,500 Brilliance China Automotive Holdings Ltd. CHN HKD 1,441,308 1.364,897 Hyundai Motor Co. KOR KRW 592,221 0.56

945,000 Astra International Tbk PT IDN IDR 580,432 0.552,725 Volkswagen AG, pfd. DEU EUR 382,347 0.36

36,900 Nissan Motor Co. Ltd. JPN JPY 371,068 0.358,740 General Motors Co. USA USD 304,502 0.292,417 Cie Generale des Etablissements Michelin, B FRA EUR 268,813 0.255,229 Hero Motocorp Ltd. IND INR 234,204 0.22

240,000 Great Wall Motor Co. Ltd., H CHN HKD 224,076 0.2127,945 Tata Motors Ltd. IND INR 194,101 0.18

163,000 Nemak SAB de CV MEX MXN 145,581 0.1428,766 Tata Motors Ltd., A IND INR 126,613 0.12

2,400 Hankook Tire Co. Ltd. KOR KRW 115,303 0.111,900 Hyundai Wia Corp. KOR KRW 114,889 0.11

15,500 Mahle-Metal Leve SA BRA BRL 98,866 0.0988,500 BAIC Motor Corp. Ltd., H CHN HKD 78,748 0.07

9,080 Hanon Systems KOR KRW 77,468 0.0725,000 Weifu High-Technology Co. Ltd., B CHN HKD 59,481 0.06

5,410,021 5.10

Banks23,402 Citigroup Inc. USA USD 1,390,781 1.3112,890 JPMorgan Chase & Co. USA USD 1,112,278 1.05

105,592 Itau Unibanco Holding SA, ADR, pfd. BRA USD 1,085,486 1.0213,155 BNP Paribas SA FRA EUR 838,114 0.79

188,470 ICICI Bank Ltd. IND INR 708,067 0.67246,750 Barclays PLC GBR GBP 679,197 0.64

12,140 SunTrust Banks Inc. USA USD 665,879 0.6381,114 Standard Chartered PLC GBR GBP 663,071 0.6265,230 Banco Bradesco SA, ADR, pfd. BRA USD 568,153 0.5315,002 Citizens Financial Group Inc. USA USD 534,521 0.50

9,540 Wells Fargo & Co. USA USD 525,750 0.4938,270 Credit Agricole SA FRA EUR 474,354 0.4558,479 HSBC Holdings PLC GBR HKD 469,446 0.44

3,976 PNC Financial Services Group Inc. USA USD 465,033 0.4431,468 ING Groep NV NLD EUR 442,689 0.4212,181 KB Financial Group Inc. KOR KRW 431,845 0.41

158,100 Habib Bank Ltd. PAK PKR 412,385 0.397,783 Societe Generale SA FRA EUR 382,808 0.36

28,700 DBS Group Holdings Ltd. SGP SGD 343,710 0.32389,000 Bank Rakyat Indonesia Persero Tbk PT IDN IDR 337,100 0.32

65,700 Kasikornbank PCL, fgn. THA THB 325,293 0.31136,900 MCB Bank Ltd. PAK PKR 312,309 0.29111,236 Turkiye Garanti Bankasi AS TUR TRY 240,275 0.23

25,974 HSBC Holdings PLC GBR GBP 210,182 0.2019,607 Grupo Financiero Santander Mexico SAB de CV, B, ADR MEX USD 140,974 0.13

433,984 Equity Group Holdings Ltd. KEN KES 128,116 0.1229,200 Moneta Money Bank AS CZE CZK 94,175 0.0931,258 UniCredit SpA ITA EUR 89,920 0.0832,000 BDO Unibank Inc. PHL PHP 72,323 0.0711,700 Bangkok Bank PCL, NVDR THA THB 52,054 0.05

3,800 Bangkok Bank PCL, fgn. THA THB 17,119 0.02

14,213,407 13.39

Capital Goods16,010 Hyundai Development Co-Engineering & Construction KOR KRW 596,104 0.5617,619 Navistar International Corp. USA USD 552,708 0.5216,545 Koninklijke Philips NV NLD EUR 504,851 0.48

4,567 Caterpillar Inc. USA USD 423,544 0.403,270 Siemens AG DEU EUR 401,873 0.38

54,345 BAE Systems PLC GBR GBP 395,979 0.374,583 Daelim Industrial Co. Ltd. KOR KRW 330,650 0.31

102,800 Toshiba Corp. JPN JPY 248,964 0.232,990 B/E Aerospace Inc. USA USD 179,968 0.17

18,405 CNH Industrial NV GBR EUR 160,058 0.154,600 Jardine Strategic Holdings Ltd. HKG USD 152,720 0.148,150 iMarketkorea Inc. KOR KRW 70,209 0.071,155 KLX Inc. USA USD 52,102 0.05

4,069,730 3.83

Commercial & Professional Services17,149 Relx PLC GBR GBP 306,101 0.2920,132 Serco Group PLC GBR GBP 35,538 0.03

341,639 0.32

Consumer Durables & Apparel9,920 Fila Korea Ltd. KOR KRW 579,298 0.55

28,700 Panasonic Corp. JPN JPY 292,045 0.27

871,343 0.82


— Franklin Global Equity Strategies Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Consumer Services82,800 Sands China Ltd. HKG HKD 359,837 0.34

8,621 Accor SA FRA EUR 321,386 0.30552,000 NagaCorp Ltd. KHM HKD 318,195 0.30120,400 MGM China Holdings Ltd. HKG HKD 249,666 0.24

1,249,084 1.18

Diversified Financials8,284 Capital One Financial Corp. USA USD 722,696 0.68

25,375 Bajaj Holdings & Investment Ltd. IND INR 679,366 0.6431,290 Remgro Ltd. ZAF ZAR 508,002 0.48

7,010 CIT Group Inc. USA USD 299,187 0.2819,761 Credit Suisse Group AG CHE CHF 283,492 0.27

4,930 Voya Financial Inc. USA USD 193,355 0.1811,710 UBS Group AG CHE CHF 183,400 0.17

7,070 Ally Financial Inc. USA USD 134,471 0.13

3,003,969 2.83

Energy33,683 Royal Dutch Shell PLC, B GBR GBP 976,731 0.92

144,696 BP PLC GBR GBP 908,330 0.86850,000 China Petroleum and Chemical Corp., H CHN HKD 602,876 0.57

34,985 Eni SpA ITA EUR 569,469 0.548,369 Apache Corp. USA USD 531,180 0.509,200 LUKOIL PJSC, ADR RUS USD 516,120 0.49

28,540 Galp Energia SGPS SA, B PRT EUR 426,123 0.406,035 Baker Hughes Inc. USA USD 392,094 0.37

13,959 Royal Dutch Shell PLC, A GBR EUR 381,659 0.3618,828 Marathon Oil Corp. USA USD 325,913 0.31

5,860 Halliburton Co. USA USD 316,967 0.3014,330 Kinder Morgan Inc. USA USD 296,774 0.28

5,670 ConocoPhillips USA USD 284,294 0.275,300 Total SA, B FRA EUR 271,695 0.26

362,900 Kunlun Energy Co. Ltd. CHN HKD 271,432 0.269,725 Royal Dutch Shell PLC, A GBR GBP 268,646 0.251,439 SK Innovation Co. Ltd. KOR KRW 174,622 0.169,036 CONSOL Energy Inc. USA USD 164,726 0.15

34,575 Coal India Ltd. IND INR 152,639 0.14157,400 Inner Mongolia Yitai Coal Co. Ltd., B CHN USD 146,225 0.14

70,185 China Shenhua Energy Co. Ltd., H CHN HKD 132,143 0.1239,600 Oil & Natural Gas Corp. Ltd. IND INR 111,508 0.10

3,300 Reliance Industries Ltd. IND INR 52,563 0.05

8,274,729 7.80

Food & Staples Retailing19,037 Metro AG DEU EUR 632,671 0.60

5,348 CVS Health Corp. USA USD 422,011 0.404,262 Walgreens Boots Alliance Inc. USA USD 352,723 0.33

32,500 Dairy Farm International Holdings Ltd. HKG USD 233,675 0.2222,402 Massmart Holdings Ltd. ZAF ZAR 205,715 0.1974,329 Tesco PLC GBR GBP 189,396 0.1819,066 Rite Aid Corp. USA USD 157,104 0.1511,712 Empire Co. Ltd., A CAN CAD 137,111 0.13

2,330,406 2.20

Food, Beverage & Tobacco8,363 British American Tobacco PLC GBR GBP 476,105 0.456,662 Reynolds American Inc. USA USD 373,339 0.355,472 Altria Group Inc. USA USD 370,017 0.35

624,500 Thai Beverage PCL, fgn. THA SGD 366,617 0.35414,000 Uni-President China Holdings Ltd. CHN HKD 292,034 0.27

6,200 Imperial Brands PLC GBR GBP 270,558 0.252,518 PepsiCo Inc. USA USD 263,458 0.255,500 M Dias Branco SA BRA BRL 194,351 0.187,740 Hite Jinro Co. Ltd. KOR KRW 135,277 0.131,468 Philip Morris International Inc. USA USD 134,307 0.13

500 HSBC Bank PLC (CRTP Savola Al-Azizia United Co., 144A) SAU USD 5,344 0.00

2,881,407 2.71

Health Care Equipment & Services13,142 Medtronic PLC USA USD 936,105 0.88

3,687 Stryker Corp. USA USD 441,739 0.4220,230 Getinge AB, B SWE SEK 324,463 0.3119,000 Ginko International Co. Ltd. TWN TWD 195,243 0.18

2,390 AmerisourceBergen Corp. USA USD 186,874 0.182,540 Cardinal Health Inc. USA USD 182,804 0.175,335 I-Sens Inc. KOR KRW 129,922 0.12

2,397,150 2.26






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Insurance19,596 American International Group Inc. USA USD 1,279,815 1.21

247,000 China Life Insurance Co. Ltd., H CHN HKD 643,420 0.6115,473 NN Group NV NLD EUR 524,157 0.4918,955 AXA SA FRA EUR 478,368 0.4574,768 Aegon NV NLD EUR 411,291 0.3956,469 RSA Insurance Group PLC GBR GBP 407,629 0.3810,540 XL Group Ltd. IRL USD 392,720 0.37

2,857 Chubb Ltd. USA USD 377,467 0.366,190 MetLife Inc. USA USD 333,579 0.31

22,791 Lancashire Holdings Ltd. GBR GBP 194,841 0.1837,000 Ping An Insurance (Group) Co. of China Ltd., A CHN CNY 188,756 0.1836,749 Direct Line Insurance Group PLC GBR GBP 167,225 0.1642,379 China Pacific Insurance Group Co. Ltd., H CHN HKD 147,830 0.14

1,586 The Hartford Financial Services Group Inc. USA USD 75,573 0.07

5,622,671 5.30

Materials118,400 Green Seal Holding Ltd. CHN TWD 530,811 0.50

55,263 Tata Chemicals Ltd. IND INR 409,057 0.3916,769 HSBC Bank PLC (CRTP Saudi Basic Industries Corp.) SAU USD 408,967 0.3911,325 CRH PLC IRL EUR 392,697 0.37

3,540 Monsanto Co. USA USD 372,443 0.3520,621 MMC Norilsk Nickel PJSC, ADR RUS USD 346,227 0.33

6,520 LafargeHolcim Ltd., B CHE CHF 343,478 0.324,736 Akzo Nobel NV NLD EUR 295,953 0.284,890 International Paper Co. USA USD 259,463 0.24

22,140 Compania de Minas Buenaventura SA, ADR PER USD 249,739 0.23342,000 Semen Indonesia (Persero) Tbk PT IDN IDR 232,908 0.22

9,121 ThyssenKrupp AG DEU EUR 217,279 0.2059,060 Glencore PLC CHE GBP 201,781 0.1991,900 Bloomage Biotechnology Corp. Ltd. CHN HKD 138,422 0.13

8,727 Freeport-McMoRan Inc., B USA USD 115,109 0.11230 Syngenta AG CHE CHF 90,902 0.09

4,600 Silver Wheaton Corp. CAN CAD 88,862 0.08400 POSCO KOR KRW 85,318 0.08

4,779,416 4.50

Media8,282 Naspers Ltd., N ZAF ZAR 1,214,148 1.148,100 Time Warner Inc. USA USD 781,893 0.748,010 Comcast Corp., A USA USD 553,091 0.52

40,631 Sky PLC GBR GBP 496,008 0.476,202 DISH Network Corp., A USA USD 359,282 0.341,235 Charter Communications Inc., A USA USD 355,581 0.33

12,130 Twenty-First Century Fox Inc., A USA USD 340,125 0.327,490 IMAX Corp. USA USD 235,186 0.228,620 KT Skylife Co. Ltd. KOR KRW 123,525 0.121,393 Liberty Global PLC, C GBR USD 41,372 0.04

4,500,211 4.24

Pharmaceuticals, Biotechnology & Life Sciences30,841 Teva Pharmaceutical Industries Ltd., ADR ISR USD 1,117,986 1.0513,525 Eli Lilly & Co. USA USD 994,764 0.9411,630 Merck & Co. Inc. USA USD 684,658 0.65

4,510 Amgen Inc. USA USD 659,407 0.628,137 Novartis AG, ADR CHE USD 592,699 0.567,630 Gilead Sciences Inc. USA USD 546,384 0.522,475 Allergan PLC USA USD 519,775 0.49

37,003 Biocon Ltd. IND INR 517,218 0.492,000 Roche Holding AG CHE CHF 456,795 0.43

21,290 Richter Gedeon Nyrt HUN HUF 449,804 0.42136,000 TTY Biopharm Co. Ltd. TWN TWD 429,525 0.41

4,590 Sanofi FRA EUR 371,396 0.353,440 Merck KGaA DEU EUR 358,880 0.34

15,619 GlaxoSmithKline PLC GBR GBP 300,533 0.289,620 QIAGEN NV NLD EUR 270,059 0.25

10,704 Glenmark Pharmaceuticals Ltd. IND INR 139,946 0.13860 Celgene Corp. USA USD 99,545 0.09990 Novartis AG CHE CHF 72,034 0.07

8,581,408 8.09

Real Estate5,917,333 Quality Houses PCL, fgn. THA THB 425,850 0.40

544,100 Land and Houses PCL, fgn. THA THB 147,977 0.14

573,827 0.54

Retailing3,280 Dufry AG CHE CHF 409,034 0.39

93,162 Kingfisher PLC GBR GBP 402,010 0.3859,670 Interpark Holdings Corp. KOR KRW 248,119 0.23

2,417 Tiffany & Co. USA USD 187,148 0.1829,564 Marks & Spencer Group PLC GBR GBP 127,465 0.12






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Retailing (continued)21,600 Cia Hering BRA BRL 100,345 0.09

1,474,121 1.39

Semiconductors & Semiconductor Equipment297,000 Taiwan Semiconductor Manufacturing Co. Ltd. TWN TWD 1,660,956 1.57

7,290 First Solar Inc. USA USD 233,936 0.2226,070 MediaTek Inc. TWN TWD 173,910 0.16

2,068,802 1.95

Software & Services60,900 Tencent Holdings Ltd. CHN HKD 1,489,810 1.4019,091 Microsoft Corp. USA USD 1,186,315 1.12

8,570 Alibaba Group Holding Ltd., ADR CHN USD 752,532 0.7118,840 Oracle Corp. USA USD 724,398 0.68

3,152 Baidu Inc., ADR CHN USD 518,220 0.4920,655 Symantec Corp. USA USD 493,448 0.47

590 Alphabet Inc., A USA USD 467,545 0.4422,950 Yandex NV, A RUS USD 461,983 0.44

5,432 Check Point Software Technologies Ltd. ISR USD 458,787 0.431,923 NetEase Inc., ADR CHN USD 414,099 0.39

20,336 Mail.ru Group Ltd., GDR, Reg S RUS USD 373,166 0.355,560 Cognizant Technology Solutions Corp., A USA USD 311,527 0.29

18,806 Infosys Ltd. IND INR 279,677 0.2616,298 PChome Online Inc. TWN TWD 142,117 0.1348,000 Aisino Co. Ltd., A CHN CNY 137,883 0.1313,100 Totvs SA BRA BRL 96,760 0.09

2,641 Tata Consultancy Services Ltd. IND INR 91,935 0.09400 MercadoLibre Inc. ARG USD 62,456 0.06

8,462,658 7.97

Technology Hardware & Equipment2,592 Samsung Electronics Co. Ltd. KOR KRW 3,868,929 3.65

25,020 Cisco Systems Inc. USA USD 756,104 0.71277,830 Hon Hai Precision Industry Co. Ltd. TWN TWD 720,803 0.68

4,220 Apple Inc. USA USD 488,760 0.4669,000 Catcher Technology Co. Ltd. TWN TWD 476,236 0.4520,370 Hewlett Packard Enterprise Co. USA USD 471,362 0.44

4,000 Largan Precision Co. Ltd. TWN TWD 467,116 0.4466,444 Ericsson, B SWE SEK 390,238 0.37

115,200 Pegatron Corp. TWN TWD 273,318 0.26107,607 ADLINK Technology Inc. TWN TWD 202,585 0.19

41,919 Nokia OYJ, A FIN EUR 202,364 0.1933,586 Posiflex Technology Inc. TWN TWD 183,171 0.1737,204 Nokia OYJ, ADR FIN USD 178,951 0.1712,300 Konica Minolta Inc. JPN JPY 122,163 0.11

2,000 NetScout Systems Inc. USA USD 63,000 0.0673,305 Lenovo Group Ltd. CHN HKD 44,430 0.04

8,909,530 8.39

Telecommunication Services8,000 SoftBank Group Corp. JPN JPY 531,417 0.50

208,875 Vodafone Group PLC GBR GBP 514,220 0.49142,500 Koninklijke KPN NV NLD EUR 421,927 0.40

43,742 Telefonica SA ESP EUR 405,944 0.38833,471 China Telecom Corp. Ltd., H CHN HKD 384,786 0.36

98,300 Singapore Telecommunications Ltd. SGP SGD 247,804 0.2312,740 Deutsche Telekom AG DEU EUR 219,239 0.2119,500 China Mobile Ltd. CHN HKD 206,706 0.2070,173 Turkcell Iletisim Hizmetleri AS TUR TRY 193,947 0.18

3,377 China Telecom Corp. Ltd., ADR CHN USD 155,781 0.1516,199 MTN Group Ltd. ZAF ZAR 148,765 0.14

6,610 Telenor ASA NOR NOK 98,702 0.09

3,529,238 3.33

Transportation42,750 Deutsche Lufthansa AG DEU EUR 551,924 0.52

215 A.P. Moeller-Maersk AS, B DNK DKK 342,999 0.321,800 United Parcel Service Inc., B USA USD 206,352 0.20

127,457 COSCO Shipping Ports Ltd. CHN HKD 128,040 0.12

1,229,315 1.16

Utilities13,796 innogy SE DEU EUR 479,178 0.4593,028 Enel SpA ITA EUR 409,938 0.39

570,500 Perusahaan Gas Negara (Persero) Tbk PT IDN IDR 114,333 0.11

1,003,449 0.95

TOTAL SHARES 95,777,531 90.25






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

WARRANTSReal Estate

2,439,366 Sansiri PCL, wts., 11/24/17 THA THB 6,804 0.00



TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESEnergy

31,100 Gazprom PAO, ADR RUS USD 157,055 0.15

Materials15,800 MMC Norilsk Nickel PJSC, ADR RUS USD 265,282 0.25



375,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 406,594 0.38200,000 Veritas U.S. Inc./Veritas Bermuda Ltd., senior note, 144A, 7.50%, 02/01/23 USA USD 187,500 0.18200,000 Veritas U.S. Inc./Veritas Bermuda Ltd., senior note, 144A, 10.50%, 02/01/24 USA USD 183,250 0.17150,000 Avaya Inc., senior secured note, 144A, 7.00%, 04/01/19 USA USD 132,000 0.13147,000 Valeant Pharmaceuticals International, senior note, 144A, 6.375%, 10/15/20 CAN USD 127,017 0.12155,000 Avaya Inc., senior note, 144A, 10.50%, 03/01/21 USA USD 67,425 0.06

65,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 45,500 0.0438,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 7.50%, 07/15/21 USA USD 32,347 0.0340,000 CHS/Community Health Systems Inc., senior note, 7.125%, 07/15/20 USA USD 30,612 0.0325,000 Valeant Pharmaceuticals International, senior bond, 144A, 6.75%, 08/15/21 CAN USD 20,875 0.0217,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.625%, 12/01/21 USA USD 13,260 0.0112,000 Valeant Pharmaceuticals International, senior bond, 144A, 7.25%, 07/15/22 CAN USD 9,870 0.01

7,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.375%, 03/15/20 USA USD 5,950 0.01

1,262,200 1.19

Government and Municipal Bonds200,000 Puerto Rico Commonwealth GO, Refunding, Series A, 8.00%, 07/01/35 * USA USD 135,000 0.12

TOTAL BONDS 1,397,200 1.31


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESDiversified Financials

28,000 Hightower Holding LLC, pfd., A, 2 ** USA USD 78,689 0.08

Energy169 Warrior Met Coal LLC, B ** USA USD 54,925 0.05

73 Warrior Met Coal LLC, A ** USA USD 23,725 0.02

78,650 0.07



176,000 NewPage Corp., Escrow Account ** USA USD 0 0.0028,840 Walter Energy Inc., Escrow Account ** USA USD 0 0.00

0 0.00

TOTAL BONDS 0 0.00



* These Bonds are currently in default** These securities are submitted to a Fair Valuation






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


1,034,780 BAE Systems PLC GBR GBP 7,539,814 0.4061,830 B/E Aerospace Inc. USA USD 3,721,548 0.1930,915 KLX Inc. USA USD 1,394,575 0.07

12,655,937 0.66

Air Freight & Logistics54,040 United Parcel Service Inc., B USA USD 6,195,146 0.33

Airlines802,480 Deutsche Lufthansa AG DEU EUR 10,360,413 0.54

Auto Components89,744 Cie Generale des Etablissements Michelin, B FRA EUR 9,981,106 0.52

Automobiles94,337 Hyundai Motor Co. KOR KRW 11,408,693 0.6070,503 Volkswagen AG, pfd. DEU EUR 9,892,337 0.52

877,900 Nissan Motor Co. Ltd. JPN JPY 8,828,191 0.46176,330 General Motors Co. USA USD 6,143,337 0.32

95,059 Hero Motocorp Ltd. IND INR 4,257,645 0.2219,531 Hyundai Motor Co., pfd., 2 KOR KRW 1,608,096 0.09

42,138,299 2.21

Banks384,564 Citigroup Inc. USA USD 22,854,639 1.20199,810 JPMorgan Chase & Co. USA USD 17,241,605 0.90241,941 BNP Paribas SA FRA EUR 15,414,232 0.81

4,576,427 Barclays PLC GBR GBP 12,596,931 0.661,502,459 Standard Chartered PLC GBR GBP 12,281,937 0.64

317,206 Citizens Financial Group Inc. USA USD 11,302,050 0.59201,140 SunTrust Banks Inc. USA USD 11,032,529 0.58

1,259,208 HSBC Holdings PLC GBR HKD 10,108,414 0.53265,530 KB Financial Group Inc. KOR KRW 9,413,657 0.49657,810 Credit Agricole SA FRA EUR 8,153,499 0.43556,156 ING Groep NV NLD EUR 7,823,955 0.41447,500 DBS Group Holdings Ltd. SGP SGD 5,359,244 0.28100,830 Societe Generale SA FRA EUR 4,959,332 0.26

80,720 Wells Fargo & Co. USA USD 4,448,479 0.2331,080 PNC Financial Services Group Inc. USA USD 3,635,117 0.19

522,131 UniCredit SpA ITA EUR 1,502,022 0.08185,494 HSBC Holdings PLC GBR GBP 1,501,022 0.08279,800 Bangkok Bank PCL, NVDR THA THB 1,244,856 0.07

73,200 Bangkok Bank PCL, fgn. THA THB 329,757 0.02

161,203,277 8.45

Beverages43,867 PepsiCo Inc. USA USD 4,589,804 0.24

Biotechnology85,040 Amgen Inc. USA USD 12,433,698 0.65

130,560 Gilead Sciences Inc. USA USD 9,349,402 0.4914,730 Celgene Corp. USA USD 1,704,997 0.09

23,488,097 1.23

Capital Markets408,317 Credit Suisse Group AG CHE CHF 5,857,729 0.31205,010 UBS Group AG CHE CHF 3,210,830 0.17

9,068,559 0.48

Chemicals61,190 Monsanto Co. USA USD 6,437,800 0.3491,395 Akzo Nobel NV NLD EUR 5,711,288 0.30

4,390 Syngenta AG CHE CHF 1,735,050 0.09

13,884,138 0.73

Commercial Services & Supplies483,386 Serco Group PLC GBR GBP 853,293 0.05

Communications Equipment414,930 Cisco Systems Inc. USA USD 12,539,185 0.66

1,014,810 Ericsson, B SWE SEK 5,960,165 0.31856,528 Nokia OYJ, A FIN EUR 4,134,883 0.22623,070 Nokia OYJ, ADR FIN USD 2,996,967 0.16

39,127 NetScout Systems Inc. USA USD 1,232,500 0.06

26,863,700 1.41

Construction Materials191,425 CRH PLC IRL EUR 6,637,710 0.35121,737 LafargeHolcim Ltd., B CHE CHF 6,413,187 0.33

13,050,897 0.68


— Franklin Global Fundamental Strategies Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Consumer Finance128,810 Capital One Financial Corp. USA USD 11,237,385 0.59131,970 Ally Financial Inc. USA USD 2,510,069 0.13

13,747,454 0.72

Containers & Packaging110,870 International Paper Co. USA USD 5,882,762 0.31

Diversified Financial Services136,289 CIT Group Inc. USA USD 5,816,814 0.30

95,730 Voya Financial Inc. USA USD 3,754,531 0.20

9,571,345 0.50

Diversified Telecommunication Services855,922 Telefonica SA ESP EUR 7,943,302 0.42

2,590,050 Koninklijke KPN NV NLD EUR 7,668,855 0.4012,721,560 China Telecom Corp. Ltd., H CHN HKD 5,873,130 0.31

100,688 China Telecom Corp. Ltd., ADR CHN USD 4,644,737 0.241,666,800 Singapore Telecommunications Ltd. SGP SGD 4,201,823 0.22

237,410 Deutsche Telekom AG DEU EUR 4,085,525 0.21

34,417,372 1.80

Electric Utilities2,119,595 Enel SpA ITA EUR 9,340,236 0.49

Energy Equipment & Services112,174 Baker Hughes Inc. USA USD 7,287,945 0.38100,830 Halliburton Co. USA USD 5,453,894 0.29

12,741,839 0.67

Food & Staples Retailing385,132 Metro AG DEU EUR 12,799,375 0.67

79,908 Walgreens Boots Alliance Inc. USA USD 6,613,186 0.3560,662 CVS Health Corp. USA USD 4,786,838 0.25

1,300,486 Tesco PLC GBR GBP 3,313,745 0.17367,353 Rite Aid Corp. USA USD 3,026,989 0.16199,870 Empire Co. Ltd., A CAN CAD 2,339,854 0.12

32,879,987 1.72

Health Care Equipment & Supplies207,294 Medtronic PLC USA USD 14,765,552 0.78

67,329 Stryker Corp. USA USD 8,066,687 0.42273,320 Getinge AB, B SWE SEK 4,383,706 0.23

27,215,945 1.43

Health Care Providers & Services31,900 Cardinal Health Inc. USA USD 2,295,843 0.1210,866 Cigna Corp. USA USD 1,449,416 0.0716,200 AmerisourceBergen Corp. USA USD 1,266,678 0.07

5,011,937 0.26

Hotels, Restaurants & Leisure165,696 Accor SA FRA EUR 6,177,055 0.32546,800 Sands China Ltd. HKG HKD 2,376,318 0.13

8,553,373 0.45

Household Durables496,000 Panasonic Corp. JPN JPY 5,047,196 0.26

Industrial Conglomerates362,044 Koninklijke Philips NV NLD EUR 11,047,338 0.58

48,390 Siemens AG DEU EUR 5,946,984 0.311,754,400 Toshiba Corp. JPN JPY 4,248,861 0.22

61,088 Jardine Strategic Holdings Ltd. HKG USD 2,028,121 0.11

23,271,304 1.22

Insurance260,372 American International Group Inc. USA USD 17,004,895 0.89304,095 NN Group NV NLD EUR 10,301,394 0.54

1,320,427 RSA Insurance Group PLC GBR GBP 9,531,689 0.50238,040 XL Group Ltd. IRL USD 8,869,370 0.47

1,618,845 Direct Line Insurance Group PLC GBR GBP 7,366,480 0.391,277,504 Aegon NV NLD EUR 7,027,424 0.37

229,247 AXA SA FRA EUR 5,785,510 0.302,157,000 China Life Insurance Co. Ltd., H CHN HKD 5,618,854 0.29

630,970 Lancashire Holdings Ltd. GBR GBP 5,394,187 0.2899,700 MetLife Inc. USA USD 5,372,833 0.2825,517 Chubb Ltd. USA USD 3,371,306 0.18

894,223 China Pacific Insurance Group Co. Ltd., H CHN HKD 3,119,316 0.1626,480 The Hartford Financial Services Group Inc. USA USD 1,261,772 0.07

90,025,030 4.72

Internet Software & Services11,250 Alphabet Inc., A USA USD 8,915,062 0.47

9,590 Baidu Inc., ADR CHN USD 1,576,692 0.08

10,491,754 0.55






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

IT Services92,200 Cognizant Technology Solutions Corp., A USA USD 5,165,966 0.27

Life Sciences Tools & Services124,120 QIAGEN NV NLD EUR 3,484,383 0.18

Machinery301,520 Navistar International Corp. USA USD 9,458,683 0.50

75,096 Caterpillar Inc. USA USD 6,964,403 0.36620,907 CNH Industrial NV GBR EUR 5,399,676 0.28

82,480 FLSmidth & Co. AS DNK DKK 3,420,953 0.18

25,243,715 1.32

Marine3,885 A.P. Moeller-Maersk AS, B DNK DKK 6,197,918 0.33

Media133,865 Time Warner Inc. USA USD 12,921,988 0.68137,170 Comcast Corp., A USA USD 9,471,589 0.50702,704 Sky PLC GBR GBP 8,578,353 0.45113,631 DISH Network Corp., A USA USD 6,582,644 0.34199,730 Twenty-First Century Fox Inc., A USA USD 5,600,429 0.29

12,606 Charter Communications Inc., A USA USD 3,629,520 0.1926,877 Liberty Global PLC, C GBR USD 798,247 0.04

47,582,770 2.49

Metals & Mining160,890 Voestalpine AG AUT EUR 6,312,767 0.33311,837 MMC Norilsk Nickel PJSC, ADR RUS USD 5,235,743 0.27177,043 ThyssenKrupp AG DEU EUR 4,217,484 0.22

1,027,680 Glencore PLC CHE GBP 3,511,106 0.18154,316 Freeport-McMoRan Inc., B USA USD 2,035,428 0.11

84,000 Silver Wheaton Corp. CAN CAD 1,622,699 0.09

22,935,227 1.20

Multiline Retail537,255 Marks & Spencer Group PLC GBR GBP 2,316,362 0.12

Multi-Utilities237,106 innogy SE DEU EUR 8,235,431 0.43

Oil, Gas & Consumable Fuels589,512 Royal Dutch Shell PLC, B GBR GBP 17,094,522 0.90

2,454,904 BP PLC GBR GBP 15,410,680 0.81649,765 Eni SpA ITA EUR 10,576,571 0.55138,129 Apache Corp. USA USD 8,767,048 0.46492,040 Galp Energia SGPS SA, B PRT EUR 7,346,510 0.38257,961 Royal Dutch Shell PLC, A GBR GBP 7,125,976 0.37277,690 Kinder Morgan Inc. USA USD 5,750,960 0.30

7,076,900 Kunlun Energy Co. Ltd. CHN HKD 5,293,187 0.282,723,561 China Shenhua Energy Co. Ltd., H CHN HKD 5,127,860 0.27

97,030 ConocoPhillips USA USD 4,865,084 0.2592,160 Total SA, B FRA EUR 4,724,415 0.25

248,893 Marathon Oil Corp. USA USD 4,308,338 0.23131,538 Royal Dutch Shell PLC, A GBR EUR 3,596,435 0.19116,388 CONSOL Energy Inc. USA USD 2,121,753 0.11

102,109,339 5.35

Pharmaceuticals533,811 Teva Pharmaceutical Industries Ltd., ADR ISR USD 19,350,649 1.01253,181 Eli Lilly & Co. USA USD 18,621,462 0.98166,452 Novartis AG, ADR CHE USD 12,124,364 0.64

43,335 Allergan PLC USA USD 9,100,783 0.48150,720 Merck & Co. Inc. USA USD 8,872,886 0.46

90,050 Sanofi FRA EUR 7,286,322 0.3859,110 Merck KGaA DEU EUR 6,166,688 0.3226,020 Roche Holding AG CHE CHF 5,942,903 0.31

301,794 GlaxoSmithKline PLC GBR GBP 5,806,969 0.309,530 Novartis AG CHE CHF 693,414 0.04

93,966,440 4.92

Professional Services174,370 Relx PLC GBR GBP 3,112,419 0.16

Real Estate Management & Development156,865 Dolphin Capital Investors Ltd. GRC GBP 16,425 0.00

Semiconductors & Semiconductor Equipment122,270 First Solar Inc. USA USD 3,923,644 0.21






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Software264,010 Microsoft Corp. USA USD 16,405,581 0.86322,340 Oracle Corp. USA USD 12,393,973 0.65111,880 Check Point Software Technologies Ltd. ISR USD 9,449,385 0.50297,552 Symantec Corp. USA USD 7,108,517 0.37

45,357,456 2.38

Specialty Retail70,486 Dufry AG CHE CHF 8,789,986 0.46

1,979,263 Kingfisher PLC GBR GBP 8,540,858 0.4542,337 Tiffany & Co. USA USD 3,278,154 0.17

5,311,941 China ZhengTong Auto Services Holdings Ltd. CHN HKD 1,548,132 0.08

22,157,130 1.16

Technology Hardware, Storage & Peripherals19,386 Samsung Electronics Co. Ltd. KOR KRW 28,936,366 1.5274,620 Apple Inc. USA USD 8,642,488 0.45

306,921 Hewlett Packard Enterprise Co. USA USD 7,102,152 0.37324,800 Konica Minolta Inc. JPN JPY 3,225,911 0.17

2,543 Samsung Electronics Co. Ltd., pfd. KOR KRW 3,018,516 0.161,397,584 Lenovo Group Ltd. CHN HKD 847,075 0.04

51,772,508 2.71

Tobacco92,786 Reynolds American Inc. USA USD 5,199,727 0.2759,788 British American Tobacco PLC GBR GBP 3,403,728 0.1848,309 Altria Group Inc. USA USD 3,266,655 0.1714,790 Philip Morris International Inc. USA USD 1,353,137 0.07

13,223,247 0.69


153,600 SoftBank Group Corp. JPN JPY 10,203,208 0.531,306,742 Turkcell Iletisim Hizmetleri AS TUR TRY 3,611,626 0.19

218,500 China Mobile Ltd. CHN HKD 2,316,165 0.12

26,916,074 1.41

TOTAL SHARES 1,106,246,654 57.96



6,854,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 7,431,449 0.39250,000,000 Food Corp. of India, secured note, 6, 9.95%, 03/07/22 IND INR 4,105,189 0.21250,000,000 Mahanagar Telephone Nigam Ltd., 8.29%, 11/28/24 IND INR 3,862,324 0.20250,000,000 Mahanagar Telephone Nigam Ltd., 8.24%, 11/19/24 IND INR 3,851,655 0.20

2,821,000 Valeant Pharmaceuticals International, senior note, 144A, 6.375%, 10/15/20 CAN USD 2,437,513 0.132,808,000 iHeartCommunications Inc., senior secured note, first lien, 9.00%, 12/15/19 USA USD 2,306,070 0.122,276,000 Veritas U.S. Inc./Veritas Bermuda Ltd., senior note, 144A, 10.50%, 02/01/24 USA USD 2,085,385 0.111,658,000 Avaya Inc., senior secured note, 144A, 7.00%, 04/01/19 USA USD 1,459,040 0.082,033,000 Avaya Inc., senior note, 144A, 10.50%, 03/01/21 USA USD 884,355 0.051,126,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 788,200 0.04

751,000 CHS/Community Health Systems Inc., senior note, 7.125%, 07/15/20 USA USD 574,740 0.03658,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 7.50%,

07/15/21 USA USD 560,123 0.03453,000 Valeant Pharmaceuticals International, senior bond, 144A, 6.75%, 08/15/21 CAN USD 378,255 0.02295,000 Veritas U.S. Inc./Veritas Bermuda Ltd., senior note, 144A, 7.50%, 02/01/23 USA USD 276,563 0.01294,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.625%,

12/01/21 USA USD 229,320 0.01222,000 Valeant Pharmaceuticals International, senior bond, 144A, 7.25%, 07/15/22 CAN USD 182,595 0.01

2,129,000 Samson Investment Co., senior note, 9.75%, 02/15/20 * USA USD 114,434 0.01118,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.375%,

03/15/20 USA USD 100,300 0.01

31,627,510 1.66

Government and Municipal Bonds86,180 Letra Tesouro Nacional, Strip, 07/01/19 BRA BRL 20,419,698 1.07

255,953,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 19,473,135 1.024,184,000 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 19,159,818 1.00

53,753 Nota Do Tesouro Nacional, 10.00%, 01/01/25 BRA BRL 15,394,800 0.813,239,400 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 15,203,043 0.80

60,190 Letra Tesouro Nacional, Strip, 01/01/19 BRA BRL 15,026,362 0.7949,875 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 14,766,782 0.77

16,405,840,000 Korea Treasury Bond, senior note, 2.00%, 03/10/21 KOR KRW 13,697,328 0.72205,003,000 Argentine Bonos del Tesoro, senior note, 15.50%, 10/17/26 ARG ARS 12,442,514 0.65

10,510,500,000 Korea Treasury Bond, senior bond, 4.25%, 06/10/21 KOR KRW 9,598,821 0.5011,506,200,000 Korea Treasury Bond, senior note, 1.50%, 06/10/19 KOR KRW 9,502,781 0.50

41,903,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 9,337,662 0.4940,597,000 Government of Malaysia, senior bond, 4.24%, 02/07/18 MYS MYR 9,143,465 0.48

140,028,000 Argentine Bonos del Tesoro, 18.20%, 10/03/21 ARG ARS 8,974,521 0.4725,587,700,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 8,854,905 0.46

105,290,000,000 Government of Indonesia, senior bond, FR46, 9.50%, 07/15/23 IDN IDR 8,479,467 0.44108,344,000,000 Government of Indonesia, senior bond, FR56, 8.375%, 09/15/26 IDN IDR 8,263,018 0.43






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)28,196 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 8,167,783 0.43

438,100,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 6,738,842 0.35370,000,000 Government of India, senior bond, 9.15%, 11/14/24 IND INR 6,219,804 0.33

67,066,000,000 Government of Indonesia, FR34, 12.80%, 06/15/21 IDN IDR 5,926,676 0.316,832,300,000 Korea Treasury Bond, senior note, 1.375%, 09/10/21 KOR KRW 5,556,995 0.29

19,341 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 5,487,348 0.2914,806,800,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 5,069,184 0.27

305,200,000 Government of India, senior note, 8.83%, 11/25/23 IND INR 4,990,550 0.26295,000,000 Government of India, senior note, 8.27%, 06/09/20 IND INR 4,580,707 0.24

3,910,000 Government of Serbia, Reg S, 7.25%, 09/28/21 SRB USD 4,369,992 0.234,270,000 Government of Portugal, Reg S, 5.125%, 10/15/24 PRT USD 4,160,048 0.22

9,440,000,000 Titulos de Tesoreria, senior bond, B, 10.00%, 07/24/24 COL COP 3,707,449 0.19733,600 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 3,643,412 0.19

221,500,000 Government of India, senior note, 8.12%, 12/10/20 IND INR 3,441,544 0.1850,592,000,000 Government of Indonesia, senior bond, FR63, 5.625%, 05/15/23 IDN IDR 3,357,154 0.18

3,091,000 Government of Ukraine, Reg S, 7.75%, 09/01/20 UKR USD 3,067,818 0.163,461,000,000 Korea Monetary Stabilization Bond, senior note, 1.25%, 08/02/18 KOR KRW 2,851,052 0.15

37,952,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 2,753,615 0.1436,370,000,000 Government of Indonesia, 8.375%, 03/15/34 IDN IDR 2,719,821 0.14

8,815,500,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 2,640,436 0.142,588,000 Government of Ukraine, Reg S, 7.75%, 09/01/21 UKR USD 2,536,240 0.132,588,000 Government of Ukraine, Reg S, 7.75%, 09/01/22 UKR USD 2,510,360 0.13

2,743 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/22 BRA BRL 2,484,590 0.132,588,000 Government of Ukraine, Reg S, 7.75%, 09/01/23 UKR USD 2,484,480 0.132,588,000 Government of Ukraine, Reg S, 7.75%, 09/01/24 UKR USD 2,458,600 0.132,588,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 2,436,291 0.13

32,243,000,000 Government of Indonesia, senior note, FR69, 7.875%, 04/15/19 IDN IDR 2,418,373 0.132,472,000 Government of Ukraine, Reg S, 7.75%, 09/01/26 UKR USD 2,323,680 0.122,472,000 Government of Ukraine, Reg S, 7.75%, 09/01/27 UKR USD 2,309,367 0.12

37,541,000 Argentine Bonos del Tesoro, 16.00%, 10/17/23 ARG ARS 2,271,263 0.1228,773,000,000 Government of Indonesia, senior bond, 8.75%, 05/15/31 IDN IDR 2,237,130 0.12

121,800,000 Government of India, senior bond, 7.80%, 05/03/20 IND INR 1,857,079 0.1022,147,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 1,689,074 0.09

1,813 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 1,653,755 0.095,293,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRN

thereafter, 05/31/40 UKR USD 1,614,365 0.092,296,000 Puerto Rico Commonwealth GO, Refunding, Series A, 8.00%, 07/01/35 * USA USD 1,549,800 0.08

18,367,000,000 Government of Indonesia, FR43, 10.25%, 07/15/22 IDN IDR 1,516,666 0.0815,123,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 1,248,791 0.0715,625,000,000 Government of Indonesia, senior bond, 9.00%, 03/15/29 IDN IDR 1,232,256 0.0717,196,000,000 Government of Indonesia, senior bond, FR59, 7.00%, 05/15/27 IDN IDR 1,209,367 0.06

13,981,000 Government of South Africa, R186, 10.50%, 12/21/26 ZAF ZAR 1,122,960 0.061,081,800,000 Korea Treasury Bond, senior note, 1.75%, 12/10/18 KOR KRW 898,564 0.059,255,000,000 Government of Indonesia, FR35, 12.90%, 06/15/22 IDN IDR 843,237 0.04

947,700,000 Korea Monetary Stabilization Bond, senior note, 1.49%, 02/02/18 KOR KRW 784,322 0.042,380 Nota Do Tesouro Nacional, senior note, 10.00%, 01/01/19 BRA BRL 720,211 0.04

1,741,000,000 Titulos de Tesoreria, senior bond, B, 11.00%, 07/24/20 COL COP 659,228 0.0431,810,000 Government of the Philippines, senior note, 7-56, 3.875%, 11/22/19 PHL PHP 646,383 0.03

680 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/45 BRA BRL 626,449 0.037,412,000,000 Government of Indonesia, senior bond, FR47, 10.00%, 02/15/28 IDN IDR 621,679 0.03

93,180,000 Government of Sri Lanka, 10.60%, 07/01/19 LKA LKR 608,861 0.036,999,000,000 Government of Indonesia, senior bond, FR42, 10.25%, 07/15/27 IDN IDR 597,301 0.03

9,050,000 Government of South Africa, 8.00%, 01/31/30 ZAF ZAR 593,057 0.0335,900,000 Government of India, senior bond, 8.35%, 05/14/22 IND INR 566,390 0.03

526,000 Government of Ukraine, Reg S, 7.75%, 09/01/19 UKR USD 529,945 0.031,503,000,000 Titulos de Tesoreria, senior bond, B, 7.00%, 05/04/22 COL COP 507,908 0.03

82,490,000 Government of Sri Lanka, A, 9.00%, 05/01/21 LKA LKR 495,100 0.03440,000 Government of Serbia, senior note, Reg S, 4.875%, 02/25/20 SRB USD 448,059 0.02

6,340,000 Government of South Africa, 8.25%, 03/31/32 ZAF ZAR 416,104 0.025,650,000 Government of South Africa, 8.875%, 02/28/35 ZAF ZAR 386,373 0.02

58,180,000 Government of Sri Lanka, A, 11.00%, 08/01/21 LKA LKR 374,207 0.02977,000,000 Titulos de Tesoreria, senior bond, B, 11.25%, 10/24/18 COL COP 351,746 0.02

22,600,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 341,063 0.0217,002,000 Government of the Philippines, senior note, 5-72, 2.125%, 05/23/18 PHL PHP 338,416 0.02

3,245,000,000 Government of Indonesia, FR36, 11.50%, 09/15/19 IDN IDR 264,428 0.01771,000,000 Titulos de Tesoreria, senior note, B, 7.00%, 09/11/19 COL COP 260,438 0.01

40,260,000 Government of Sri Lanka, D, 8.50%, 06/01/18 LKA LKR 260,290 0.012,622,000,000 Government of Indonesia, senior bond, FR39, 11.75%, 08/15/23 IDN IDR 233,542 0.013,198,000,000 Government of Indonesia, senior note, FR66, 5.25%, 05/15/18 IDN IDR 232,150 0.01

239 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/19 BRA BRL 217,368 0.012,330,000,000 Government of Indonesia, FR52, 10.50%, 08/15/30 IDN IDR 204,015 0.012,664,000,000 Government of Indonesia, FR48, 9.00%, 09/15/18 IDN IDR 203,287 0.01

220 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/24 BRA BRL 200,183 0.0129,720,000 Government of Sri Lanka, A, 8.00%, 11/15/18 LKA LKR 186,525 0.01

548,000,000 Titulos de Tesoreria, B, 5.00%, 11/21/18 COL COP 178,828 0.01454,000,000 Government of Colombia, senior bond, 7.75%, 04/14/21 COL COP 158,032 0.01

1,801,000,000 Government of Indonesia, 6.125%, 05/15/28 IDN IDR 112,959 0.011,850,000 Government of South Africa, 7.00%, 02/28/31 ZAF ZAR 110,150 0.01

21,745 Mexican Udibonos, Index Linked, 4.00%, 06/13/19 MEX MXN 109,269 0.011,146,000,000 Government of Indonesia, senior bond, FR44, 10.00%, 09/15/24 IDN IDR 94,548 0.01






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)17,352 Mexican Udibonos, Index Linked, 2.50%, 12/10/20 MEX MXN 83,904 0.00

12,260,000 Government of Sri Lanka, B, 8.50%, 07/15/18 LKA LKR 78,796 0.004,800,000 Government of India, senior note, 7.28%, 06/03/19 IND INR 72,041 0.002,370,000 Government of the Philippines, senior note, 7-51, 5.00%, 08/18/18 PHL PHP 48,462 0.007,070,000 Government of Sri Lanka, 11.20%, 07/01/22 LKA LKR 45,439 0.00

109,000,000 Government of Colombia, senior bond, 9.85%, 06/28/27 COL COP 42,888 0.001,960,000 Government of the Philippines, senior note, 3.375%, 08/20/20 PHL PHP 38,970 0.004,050,000 Government of Sri Lanka, 8.00%, 11/01/19 LKA LKR 24,598 0.00

69,000,000 Government of Colombia, senior bond, 4.375%, 03/21/23 COL COP 20,137 0.00500,000 Government of the Philippines, senior note, 5.875%, 01/31/18 PHL PHP 10,368 0.00

364,199,055 19.08

Securities Maturing Within One Year20,385,900,000 Korea Monetary Stabilization Bond, senior note, 1.56%, 10/02/17 KOR KRW 16,889,418 0.8915,055,500,000 Korea Monetary Stabilization Bond, senior note, 1.57%, 01/09/17 KOR KRW 12,471,228 0.65

56,860,000 Bank of Negara Monetary Note, 0.00%, 07/20/17 MYS MYR 12,438,473 0.6550,710,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 11,313,778 0.5948,030,000 Bank of Negara Monetary Note, 0.00%, 04/20/17 MYS MYR 10,599,576 0.5620,692,010 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 9,832,297 0.52

1,953,000 Government of Mexico, senior note, M, 5.00%, 06/15/17 MEX MXN 9,366,602 0.4915,523,170 Mexico Treasury Bill, 0.00%, 05/25/17 MEX MXN 7,302,463 0.38

8,636,500,000 Korea Treasury Bond, senior note, 2.00%, 12/10/17 KOR KRW 7,181,375 0.3828,154,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 6,283,187 0.3313,308,760 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 6,199,074 0.3312,987,030 Mexico Treasury Bill, 0.00%, 04/12/17 MEX MXN 6,157,503 0.32

9,063,500 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 4,327,235 0.235,083,500,000 Korea Monetary Stabilization Bond, senior note, 1.70%, 08/02/17 KOR KRW 4,215,749 0.22

13,261,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 2,974,029 0.1612,560,000 Government of Malaysia, senior bond, 3.814%, 02/15/17 MYS MYR 2,802,705 0.15

9,750,000 Bank of Negara Monetary Note, 0.00%, 09/19/17 MYS MYR 2,125,613 0.119,360,000 Bank of Negara Monetary Note, 0.00%, 06/22/17 MYS MYR 2,053,045 0.113,774,590 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 1,762,677 0.093,571,070 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 1,631,505 0.093,230,060 Mexico Treasury Bill, 0.00%, 04/27/17 MEX MXN 1,527,471 0.08

271,200 Government of Mexico, 7.75%, 12/14/17 MEX MXN 1,325,187 0.071,405,800,000 Korea Monetary Stabilization Bond, senior note, 1.96%, 02/02/17 KOR KRW 1,165,060 0.06

2,073,700 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 992,388 0.051,936,660 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 922,398 0.053,330,000 Malaysia Treasury Bill, 0.00%, 08/11/17 MYS MYR 729,200 0.042,390,000 Malaysia Treasury Bill, 0.00%, 01/20/17 MYS MYR 532,023 0.032,100,000 Malaysia Treasury Bill, 0.00%, 03/10/17 MYS MYR 465,352 0.02

340,000 Government of Serbia, senior note, Reg S, 5.25%, 11/21/17 SRB USD 348,514 0.029,310,000 Philippine Treasury Bill, 0.00%, 02/22/17 PHL PHP 187,267 0.01

37,150 Mexican Udibonos, Index Linked, 3.50%, 12/14/17 MEX MXN 183,436 0.019,070,000 Philippine Treasury Bill, 0.00%, 03/15/17 PHL PHP 182,288 0.013,680,000 Philippine Treasury Bill, 0.00%, 09/27/17 PHL PHP 73,190 0.003,340,000 Government of the Philippines, senior note, 3-21, 2.875%, 05/22/17 PHL PHP 67,410 0.003,220,000 Philippine Treasury Bill, 0.00%, 06/07/17 PHL PHP 64,449 0.003,140,000 Philippine Treasury Bill, 0.00%, 05/03/17 PHL PHP 62,992 0.002,740,000 Philippine Treasury Bill, 0.00%, 03/29/17 PHL PHP 55,027 0.002,500,000 Philippine Treasury Bill, 0.00%, 01/18/17 PHL PHP 50,361 0.002,000,000 Philippine Treasury Bill, 0.00%, 02/08/17 PHL PHP 40,262 0.001,760,000 Philippine Treasury Bill, 0.00%, 04/19/17 PHL PHP 35,328 0.001,460,000 Philippine Treasury Bill, 0.00%, 05/17/17 PHL PHP 29,221 0.00

980,000 Philippine Treasury Bill, 0.00%, 03/08/17 PHL PHP 19,703 0.00670,000 Philippine Treasury Bill, 0.00%, 02/15/17 PHL PHP 13,484 0.00

146,999,543 7.70

TOTAL BONDS 542,826,108 28.44


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESDiversified Financial Services

232,000 Hightower Holding LLC, pfd., A, 2 ** USA USD 651,990 0.03230,000 Hightower Holding LLC, pfd., A, 1 ** USA USD 293,273 0.02

945,263 0.05

Oil, Gas & Consumable Fuels3,878 Warrior Met Coal LLC, B ** USA USD 1,260,350 0.071,673 Warrior Met Coal LLC, A ** USA USD 543,725 0.03

1,804,075 0.10







Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


1,601,000 NewPage Corp., Escrow Account ** USA USD 0 0.00649,930 Walter Energy Inc., Escrow Account ** USA USD 0 0.00

0 0.00

TOTAL BONDS 0 0.00









Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


18,000 MTU Aero Engines AG DEU EUR 2,079,568 2.98

Auto Components32,500 Delphi Automotive PLC GBR USD 2,188,875 3.13

Banks16,500 Signature Bank USA USD 2,478,300 3.5538,000 KBC Groep NV BEL EUR 2,352,235 3.36

4,830,535 6.91

Biotechnology39,000 Alkermes PLC USA USD 2,167,620 3.10

4,200 Regeneron Pharmaceuticals Inc. USA USD 1,541,778 2.2118,000 CSL Ltd. AUS AUD 1,304,205 1.8736,000 Acadia Pharmaceuticals Inc. USA USD 1,038,240 1.48

6,051,843 8.66

Capital Markets63,000 Lazard Ltd., A USA USD 2,588,670 3.7033,500 Intercontinental Exchange Inc. USA USD 1,890,070 2.71

3,800 Partners Group Holding AG CHE CHF 1,780,784 2.55

6,259,524 8.96

Chemicals35,000 Umicore SA BEL EUR 1,994,182 2.8531,000 Koninklijke DSM NV NLD EUR 1,857,933 2.66

3,852,115 5.51

Energy Equipment & Services17,500 Core Laboratories NV USA USD 2,100,700 3.0122,000 Schlumberger Ltd. USA USD 1,846,900 2.64

3,947,600 5.65

Health Care Equipment & Supplies22,000 Danaher Corp. USA USD 1,712,480 2.4519,000 Cochlear Ltd. AUS AUD 1,680,209 2.41

3,392,689 4.86

Health Care Technology16,000 athenahealth Inc. USA USD 1,682,720 2.41

Hotels, Restaurants & Leisure190,000 Merlin Entertainments PLC GBR GBP 1,049,955 1.50

Household Products18,500 Reckitt Benckiser Group PLC GBR GBP 1,569,266 2.25

Insurance153,000 St. James’s Place Capital PLC GBR GBP 1,911,117 2.73

Internet & Direct Marketing Retail160,000 Vipshop Holdings Ltd., ADR CHN USD 1,761,600 2.52

Internet Software & Services11,000 CoStar Group Inc. USA USD 2,073,390 2.9710,000 MercadoLibre Inc. ARG USD 1,561,400 2.23

3,634,790 5.20

IT Services25,000 Visa Inc., A USA USD 1,950,500 2.79

Pharmaceuticals8,500 Roche Holding AG CHE CHF 1,941,379 2.78

30,000 The Medicines Co. USA USD 1,018,200 1.46

2,959,579 4.24

Professional Services29,000 Verisk Analytics Inc. USA USD 2,353,930 3.37

850 SGS SA CHE CHF 1,729,379 2.47

4,083,309 5.84

Road & Rail33,000 DSV AS DNK DKK 1,467,746 2.10

Semiconductors & Semiconductor Equipment120,000 Infineon Technologies AG DEU EUR 2,084,619 2.98

Software21,500 Adobe Systems Inc. USA USD 2,213,425 3.1724,000 Check Point Software Technologies Ltd. ISR USD 2,027,040 2.9041,000 Line Corp. JPN JPY 1,406,476 2.01

5,646,941 8.08


— Franklin Global Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Technology Hardware, Storage & Peripherals18,500 Apple Inc. USA USD 2,142,670 3.07

Textiles, Apparel & Luxury Goods96,000 Burberry Group PLC GBR GBP 1,770,316 2.5332,000 Kate Spade & Co. USA USD 597,440 0.86

2,367,756 3.39

Trading Companies & Distributors12,000,000 Noble Group Ltd. HKG SGD 1,408,937 2.02

TOTAL SHARES 68,324,254 97.78




— Franklin Global Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


5,500 MTU Aero Engines AG DEU EUR 635,423 1.442,010 Rockwell Collins Inc. USA USD 186,448 0.42

23,230 BAE Systems PLC GBR GBP 169,263 0.38

991,134 2.24

Airlines17,360 Deutsche Lufthansa AG DEU EUR 224,126 0.51

Auto Components9,000 Delphi Automotive PLC GBR USD 606,150 1.371,960 Cie Generale des Etablissements Michelin, B FRA EUR 217,986 0.499,400 Sumitomo Rubber Industries Ltd. JPN JPY 149,249 0.34

577 Hyundai Mobis Co. Ltd. KOR KRW 126,177 0.29

1,099,562 2.49

Automobiles40,000 Nissan Motor Co. Ltd. JPN JPY 402,241 0.91

3,770 General Motors Co. USA USD 131,347 0.30956 Hyundai Motor Co. KOR KRW 115,614 0.26

649,202 1.47

Banks4,800 Signature Bank USA USD 720,960 1.63

11,000 KBC Groep NV BEL EUR 680,910 1.545,900 BNP Paribas SA FRA EUR 375,893 0.85

46,320 HSBC Holdings PLC GBR GBP 374,823 0.856,038 Citigroup Inc. USA USD 358,838 0.81

22,824 ING Groep NV NLD EUR 321,086 0.733,460 JPMorgan Chase & Co. USA USD 298,563 0.689,646 Hana Financial Group Inc. KOR KRW 249,688 0.57

83,209 Barclays PLC GBR GBP 229,039 0.5212,800 United Overseas Bank Ltd. SGP SGD 180,344 0.4113,920 Credit Agricole SA FRA EUR 172,537 0.3921,070 Standard Chartered PLC GBR GBP 172,238 0.3910,800 DBS Group Holdings Ltd. SGP SGD 129,341 0.29

4,264,260 9.66

Beverages5,700 Suntory Beverage & Food Ltd. JPN JPY 236,738 0.547,400 Kirin Holdings Co. Ltd. JPN JPY 120,374 0.27

357,112 0.81

Biotechnology11,800 Alkermes PLC USA USD 655,844 1.49

6,600 CSL Ltd. AUS AUD 478,209 1.081,300 Regeneron Pharmaceuticals Inc. USA USD 477,217 1.084,500 Gilead Sciences Inc. USA USD 322,245 0.732,000 Amgen Inc. USA USD 292,420 0.66

10,000 Acadia Pharmaceuticals Inc. USA USD 288,400 0.651,310 Celgene Corp. USA USD 151,632 0.35

2,665,967 6.04

Building Products6,410 Compagnie de Saint-Gobain FRA EUR 298,482 0.68

Capital Markets16,500 Lazard Ltd., A USA USD 677,985 1.54

1,200 Partners Group Holding AG CHE CHF 562,353 1.279,500 Intercontinental Exchange Inc. USA USD 535,990 1.21

18,750 UBS Group AG CHE CHF 293,659 0.674,270 Morgan Stanley USA USD 180,407 0.41

2,250,394 5.10

Chemicals9,800 Koninklijke DSM NV NLD EUR 587,346 1.33

10,000 Umicore SA BEL EUR 569,766 1.293,720 LANXESS AG DEU EUR 244,049 0.556,560 Chemtura Corp. USA USD 217,792 0.491,960 Eastman Chemical Co. USA USD 147,412 0.343,360 Johnson Matthey PLC GBR GBP 131,704 0.303,010 Yara International ASA NOR NOK 118,463 0.27

2,016,532 4.57

Communications Equipment6,250 Cisco Systems Inc. USA USD 188,875 0.43

Construction Materials7,200 CRH PLC IRL EUR 249,662 0.56

Consumer Finance3,150 Capital One Financial Corp. USA USD 274,806 0.62


— Franklin Global Growth and Value Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Diversified Financial Services7,220 Voya Financial Inc. USA USD 283,168 0.64

Diversified Telecommunication Services577,330 China Telecom Corp. Ltd., H CHN HKD 266,535 0.60

13,790 Telenor ASA NOR NOK 205,916 0.4711,608 Telefonica SA ESP EUR 107,727 0.2441,690 Singapore Telecommunications Ltd. SGP SGD 105,096 0.24

685,274 1.55

Electrical Equipment7,320 ABB Ltd. CHE CHF 154,393 0.35

Electronic Equipment, Instruments & Components14,910 Knowles Corp. USA USD 249,146 0.56

3,900 Omron Corp. JPN JPY 149,634 0.34

398,780 0.90

Energy Equipment & Services5,500 Core Laboratories NV USA USD 660,220 1.507,400 Schlumberger Ltd. USA USD 621,230 1.414,300 Halliburton Co. USA USD 232,587 0.53

15,250 Subsea 7 SA GBR NOK 192,942 0.4417,730 Petrofac Ltd. GBR GBP 189,796 0.43

1,930 Baker Hughes Inc. USA USD 125,392 0.2820,200 Precision Drilling Corp. CAN CAD 110,116 0.25

1,380 Technip SA FRA EUR 98,463 0.224,020 SBM Offshore NV NLD EUR 63,088 0.14

2,293,834 5.20

Health Care Equipment & Supplies6,800 Danaher Corp. USA USD 529,312 1.205,000 Cochlear Ltd. AUS AUD 442,160 1.008,910 Getinge AB, B SWE SEK 142,905 0.331,690 Medtronic PLC USA USD 120,379 0.272,480 LivaNova PLC GBR USD 111,526 0.25

1,346,282 3.05

Health Care Technology5,500 athenahealth Inc. USA USD 578,435 1.31

Hotels, Restaurants & Leisure60,000 Merlin Entertainments PLC GBR GBP 331,565 0.75

Household Durables18,900 Panasonic Corp. JPN JPY 192,323 0.43


Industrial Conglomerates1,340 Siemens AG DEU EUR 164,682 0.37

50,000 Toshiba Corp. JPN JPY 121,091 0.28

285,773 0.65

Insurance48,000 St. James’s Place Capital PLC GBR GBP 599,566 1.3610,616 AXA SA FRA EUR 267,916 0.61

3,720 American International Group Inc. USA USD 242,953 0.5574,000 China Life Insurance Co. Ltd., H CHN HKD 192,766 0.4431,470 Aegon NV NLD EUR 173,113 0.39

6,890 Prudential PLC GBR GBP 138,133 0.31

1,614,447 3.66

Internet & Direct Marketing Retail46,000 Vipshop Holdings Ltd., ADR CHN USD 506,460 1.15

Internet Software & Services3,300 CoStar Group Inc. USA USD 622,017 1.413,100 MercadoLibre Inc. ARG USD 484,034 1.10

520 Alphabet Inc., A USA USD 412,074 0.931,340 Baidu Inc., ADR CHN USD 220,309 0.505,510 eBay Inc. USA USD 163,592 0.37

1,902,026 4.31

IT Services8,000 Visa Inc., A USA USD 624,160 1.41

Life Sciences Tools & Services7,110 QIAGEN NV NLD EUR 199,597 0.452,070 MorphoSys AG DEU EUR 106,180 0.24

305,777 0.69






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Machinery53,000 IHI Corp. JPN JPY 137,833 0.31

3,810 Navistar International Corp. USA USD 119,520 0.27

257,353 0.58

Media10,930 Twenty-First Century Fox Inc., A USA USD 306,477 0.69

3,360 Comcast Corp., A USA USD 232,008 0.5316,580 Sky PLC GBR GBP 202,403 0.46

740,888 1.68

Metals & Mining46,180 Glencore PLC CHE GBP 157,776 0.3610,000 Sumitomo Metal Mining Co. Ltd. JPN JPY 128,919 0.29

8,010 Allegheny Technologies Inc. USA USD 127,599 0.296,000 Silver Wheaton Corp. CAN CAD 115,907 0.26

530,201 1.20

Oil, Gas & Consumable Fuels73,710 BP PLC GBR GBP 462,715 1.0521,634 Eni SpA ITA EUR 352,148 0.8010,200 Royal Dutch Shell PLC, A GBR EUR 278,883 0.6316,560 Galp Energia SGPS SA, B PRT EUR 247,253 0.56

4,250 ConocoPhillips USA USD 213,095 0.484,220 Devon Energy Corp. USA USD 192,727 0.443,000 Apache Corp. USA USD 190,410 0.43

220,000 Kunlun Energy Co. Ltd. CHN HKD 164,550 0.372,550 Total SA, B FRA EUR 130,721 0.304,436 Royal Dutch Shell PLC, B GBR GBP 128,634 0.293,500 Suncor Energy Inc. CAN CAD 114,425 0.26

2,475,561 5.61

Pharmaceuticals3,350 Roche Holding AG CHE CHF 765,132 1.73

10,000 The Medicines Co. USA USD 339,400 0.771,470 Allergan PLC USA USD 308,715 0.706,888 Teva Pharmaceutical Industries Ltd., ADR ISR USD 249,690 0.573,220 Eli Lilly & Co. USA USD 236,831 0.542,000 Bayer AG DEU EUR 208,609 0.475,100 H. Lundbeck A/S DNK DKK 207,413 0.471,790 Merck KGaA DEU EUR 186,743 0.422,082 Sanofi FRA EUR 168,463 0.381,820 UCB SA BEL EUR 116,643 0.261,300 Perrigo Co. PLC USA USD 108,199 0.25

2,895,838 6.56

Professional Services8,200 Verisk Analytics Inc. USA USD 665,594 1.51

270 SGS SA CHE CHF 549,332 1.24

1,214,926 2.75

Road & Rail11,000 DSV AS DNK DKK 489,249 1.11

Semiconductors & Semiconductor Equipment35,000 Infineon Technologies AG DEU EUR 608,014 1.38

1,156,000 GCL-Poly Energy Holdings Ltd. CHN HKD 138,639 0.31

746,653 1.69

Software6,400 Adobe Systems Inc. USA USD 658,880 1.497,300 Check Point Software Technologies Ltd. ISR USD 616,558 1.407,470 Microsoft Corp. USA USD 464,186 1.05

10,390 Oracle Corp. USA USD 399,496 0.9111,500 Line Corp. JPN JPY 394,499 0.89

2,533,619 5.74


328 Samsung Electronics Co. Ltd. KOR KRW 489,587 1.1115,900 Konica Minolta Inc. JPN JPY 157,919 0.36

5,260 Hewlett Packard Enterprise Co. USA USD 121,716 0.28

1,892,676 4.29

Textiles, Apparel & Luxury Goods29,000 Burberry Group PLC GBR GBP 534,783 1.21

7,500 Kate Spade & Co. USA USD 140,025 0.32

674,808 1.53

Trading Companies & Distributors4,200,000 Noble Group Ltd. HKG SGD 493,128 1.12






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Wireless Telecommunication Services5,900 SoftBank Group Corp. JPN JPY 391,920 0.89

19,500 China Mobile Ltd. CHN HKD 206,706 0.4779,447 Vodafone Group PLC GBR GBP 195,587 0.44

794,213 1.80

TOTAL SHARES 43,297,840 98.08








Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


9,000 iShares iBoxx USD High Yield Corporate Bond ETF USA USD 778,950 1.59


SHARESOil, Gas & Consumable Fuels

182 Midstates Petroleum Co. Inc. USA USD 3,774 0.01

Paper & Forest Products138 Verso Corp., A USA USD 980 0.00


TOTAL TRANSFERABLE SECURITIES ADMITTED TOAN OFFICIAL STOCK EXCHANGE LISTING 783,704 1.60

TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESElectric Utilities

8,562 Vistra Energy Corp. USA USD 132,711 0.27

Oil, Gas & Consumable Fuels4,717 Titan Energy LLC USA USD 113,208 0.23



1,200,000 Sprint Communications Inc., senior note, 6.00%, 11/15/22 USA USD 1,212,000 2.47800,000 Sabine Pass Liquefaction LLC, first lien, 5.625%, 04/15/23 USA USD 854,000 1.74700,000 Western Digital Corp., senior note, 144A, 10.50%, 04/01/24 USA USD 829,500 1.69800,000 Gaz Capital SA, (OJSC Gazprom), loan participation, senior note, 144A, 3.85%, 02/06/20 RUS USD 813,532 1.65800,000 Navient Corp., senior note, 6.125%, 03/25/24 USA USD 781,000 1.59700,000 T-Mobile USA Inc., senior note, 6.125%, 01/15/22 USA USD 740,250 1.51700,000 CIT Group Inc., senior bond, 5.00%, 08/01/23 USA USD 724,500 1.47500,000 Tesco PLC, senior bond, 6.125%, 02/24/22 GBR GBP 700,399 1.42700,000 First Quantum Minerals Ltd., senior note, 144A, 7.00%, 02/15/21 CAN USD 699,720 1.42700,000 DISH DBS Corp., senior bond, 5.00%, 03/15/23 USA USD 698,250 1.42700,000 Calpine Corp., senior bond, 5.75%, 01/15/25 USA USD 679,000 1.38600,000 XPO Logistics Inc., senior note, Reg S, 5.75%, 06/15/21 USA EUR 671,983 1.37700,000 Horizon Pharma Inc., senior note, 6.625%, 05/01/23 USA USD 668,500 1.36600,000 Wind Acquisition Finance SA, senior note, Reg S, 7.00%, 04/23/21 ITA EUR 658,315 1.34600,000 International Game Technology PLC, senior secured note, 144A, 6.25%, 02/15/22 USA USD 646,500 1.32600,000 Millicom International Cellular SA, senior note, 144A, 6.625%, 10/15/21 LUX USD 632,250 1.29600,000 1011778 BC ULC/New Red Finance Inc., secured note, second lien, 144A, 6.00%,

04/01/22 CAN USD 628,500 1.28600,000 Bank of America Corp., junior sub. bond, M, 8.125% to 05/15/18, FRN thereafter,

Perpetual USA USD 624,000 1.27600,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 5.25%, 09/30/22 USA USD 622,500 1.27600,000 First Data Corp., second lien, 144A, 5.75%, 01/15/24 USA USD 621,378 1.26600,000 Unitymedia KabelBW GmbH, senior bond, 144A, 6.125%, 01/15/25 DEU USD 619,500 1.26600,000 Fiat Chrysler Automobiles NV, senior note, 4.50%, 04/15/20 USA USD 615,000 1.25600,000 NEW Areva Holding SA, senior note, Reg S, 3.125%, 03/20/23 FRA EUR 609,735 1.24600,000 Citigroup Inc., junior sub. bond, M, 6.30% to 05/15/24, FRN thereafter, Perpetual USA USD 595,650 1.21600,000 CSC Holdings LLC, senior note, 5.25%, 06/01/24 USA USD 588,000 1.20500,000 Ball Corp., senior note, 4.375%, 12/15/23 USA EUR 584,308 1.19500,000 WPX Energy Inc., senior note, 8.25%, 08/01/23 USA USD 561,250 1.14539,000 WMG Acquisition Corp., senior note, 144A, 5.625%, 04/15/22 USA USD 559,886 1.14616,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 551,320 1.12700,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.625%, 12/01/21 USA USD 546,000 1.11500,000 Infor (U.S.) Inc., senior note, 5.75%, 05/15/22 USA EUR 541,557 1.10500,000 CommScope Technologies Finance LLC, senior bond, 144A, 6.00%, 06/15/25 USA USD 532,500 1.08500,000 HCA Inc., senior bond, 5.875%, 05/01/23 USA USD 532,500 1.08500,000 The Chemours Co., senior note, 6.125%, 05/15/23 USA EUR 525,982 1.07500,000 Sirius XM Radio Inc., senior bond, 144A, 6.00%, 07/15/24 USA USD 523,750 1.07500,000 Energy Transfer Equity LP, senior secured bond, first lien, 5.875%, 01/15/24 USA USD 518,750 1.06500,000 JBS USA LLC/Finance Inc., senior bond, 144A, 5.875%, 07/15/24 USA USD 518,750 1.06500,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 4.25%, 07/01/20 NLD USD 513,762 1.04500,000 HCA Inc., senior bond, 5.375%, 02/01/25 USA USD 501,875 1.02700,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 490,000 1.00500,000 Sanchez Energy Corp., senior note, 6.125%, 01/15/23 USA USD 477,500 0.97700,000 Intelsat Jackson Holdings SA, senior bond, 5.50%, 08/01/23 LUX USD 476,000 0.97500,000 BMC Software Finance Inc., senior note, 144A, 8.125%, 07/15/21 USA USD 469,688 0.96500,000 Radio One Inc., senior sub. note, 144A, 9.25%, 02/15/20 USA USD 456,250 0.93400,000 Ceramtec Group GmbH, senior note, Reg S, 8.25%, 08/15/21 DEU EUR 450,628 0.92600,000 iHeartCommunications Inc., senior secured bond, first lien, 9.00%, 03/01/21 USA USD 446,250 0.91400,000 Beazer Homes USA Inc., senior note, 144A, 8.75%, 03/15/22 USA USD 433,000 0.88600,000 BreitBurn Energy Partners LP/BreitBurn Finance Corp., senior bond, 7.875%, 04/15/22 * USA USD 429,000 0.87400,000 Cortes NP Acquisition Corp., senior note, 144A, 9.25%, 10/15/24 USA USD 426,000 0.87400,000 Novelis Corp., senior note, 144A, 6.25%, 08/15/24 USA USD 425,000 0.86400,000 Post Holdings Inc., senior note, 144A, 6.00%, 12/15/22 USA USD 419,500 0.85400,000 Rain CII Carbon LLC/CII Carbon Corp., second lien, Reg S, 8.50%, 01/15/21 USA EUR 418,776 0.85500,000 Endo Finance LLC/Endo Ltd./Endo Finco Inc., senior bond, 144A, 6.00%, 02/01/25 USA USD 418,750 0.85


— Franklin Global High Income Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)400,000 CVR Partners LP/CVR Nitrogen Finance Corp., secured note, second lien, 144A, 9.25%,

06/15/23 USA USD 413,500 0.84400,000 CONSOL Energy Inc., senior note, 8.00%, 04/01/23 USA USD 412,500 0.84400,000 Crestwood Midstream Partners LP/Crestwood Midstrean Finance Corp., senior note,

6.25%, 04/01/23 USA USD 410,000 0.83400,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A, 6.00%,

06/30/21 LUX USD 408,500 0.83400,000 Taylor Morrison Communities Inc./Monarch Communities Inc., senior note, 144A, 5.625%,

03/01/24 USA USD 406,000 0.83400,000 Cemex SAB de CV, first lien, 144A, 5.70%, 01/11/25 MEX USD 405,834 0.83500,000 Galapagos Holding SA, senior note, Reg S, 7.00%, 06/15/22 LUX EUR 400,788 0.82300,000 Virgin Media Finance PLC, senior bond, Reg S, 6.375%, 10/15/24 GBR GBP 391,272 0.80400,000 NRG Yield Operating LLC, senior bond, 144A, 5.00%, 09/15/26 USA USD 384,000 0.78400,000 Digicel Group Ltd., senior note, 144A, 6.00%, 04/15/21 BMU USD 363,000 0.74400,000 InterGen NV, secured bond, 144A, 7.00%, 06/30/23 NLD USD 358,000 0.73350,000 Hughes Satellite Systems Corp., senior bond, 144A, 6.625%, 08/01/26 USA USD 352,625 0.72300,000 FMG Resources (August 2006) Pty. Ltd., senior secured note, 144A, 9.75%, 03/01/22 AUS USD 349,521 0.71300,000 Sealed Air Corp., senior note, Reg S, 4.50%, 09/15/23 USA EUR 344,917 0.70270,000 Virgin Media Secured Finance PLC, senior secured bond, first lien, Reg S, 5.50%,

01/15/25 GBR GBP 344,244 0.70300,000 Onex Wizard Acquisition Co. II SCA, senior note, Reg S, 7.75%, 02/15/23 LUX EUR 340,913 0.69300,000 Vizient Inc., senior note, 144A, 10.375%, 03/01/24 USA USD 340,500 0.69300,000 Matterhorn Telecom SA, senior secured note, Reg S, 3.875%, 05/01/22 CHE EUR 329,071 0.67300,000 Matterhorn Telecom Holding SA, senior note, Reg S, 4.875%, 05/01/23 CHE EUR 320,518 0.65300,000 TransDigm Inc., senior sub. note, 6.00%, 07/15/22 USA USD 313,500 0.64400,000 Talen Energy Supply LLC, senior note, 6.50%, 06/01/25 USA USD 311,000 0.63300,000 The Goodyear Tire & Rubber Co., senior note, 5.125%, 11/15/23 USA USD 310,500 0.63300,000 CenturyLink Inc., senior bond, 6.75%, 12/01/23 USA USD 307,875 0.63300,000 Barminco Finance Pty. Ltd., senior note, 144A, 9.00%, 06/01/18 AUS USD 306,375 0.62300,000 Eldorado Gold Corp., senior note, 144A, 6.125%, 12/15/20 CAN USD 306,000 0.62300,000 Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%, 03/01/25 USA USD 298,350 0.61300,000 Tenet Healthcare Corp., senior note, 5.50%, 03/01/19 USA USD 296,250 0.60300,000 Netflix Inc., senior bond, 144A, 4.375%, 11/15/26 USA USD 291,375 0.59300,000 Post Holdings Inc., senior bond, 144A, 5.00%, 08/15/26 USA USD 288,000 0.59277,435 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg

SA, senior note, 8.25%, 02/15/21 USA USD 286,533 0.58200,000 Microsemi Corp., senior note, 144A, 9.125%, 04/15/23 USA USD 234,000 0.48200,000 Cheniere Corpus Christi Holdings LLC, senior secured note, 144A, 7.00%, 06/30/24 USA USD 217,500 0.44200,000 Jaguar Holding Co. II/Pharmaceutical Product Development LLC, senior note, 144A,

6.375%, 08/01/23 USA USD 214,500 0.44200,000 First Data Corp., senior note, 144A, 7.00%, 12/01/23 USA USD 213,500 0.43200,000 PSPC Escrow Corp., senior note, Reg S, 6.00%, 02/01/23 USA EUR 212,819 0.43200,000 JBS USA LLC/Finance Inc., senior note, 144A, 7.25%, 06/01/21 USA USD 208,500 0.42200,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, 5.75%, 02/15/26 USA USD 207,500 0.42200,000 Cemex Finance LLC, senior secured note, first lien, 144A, 6.00%, 04/01/24 MEX USD 206,775 0.42200,000 Wynn Macau Ltd., senior note, 144A, 5.25%, 10/15/21 MAC USD 202,500 0.41200,000 Sirius XM Radio Inc., senior bond, 144A, 5.375%, 04/15/25 USA USD 199,500 0.41400,000 Memorial Production Partners LP/Memorial Production Finance Corp., senior note,

6.875%, 08/01/22 * USA USD 194,000 0.39200,000 CenturyLink Inc., senior bond, 5.625%, 04/01/25 USA USD 190,750 0.39200,000 CSI Compressco LP/CSI Compressco Finance Inc., senior note, 7.25%, 08/15/22 USA USD 190,000 0.39200,000 Tenet Healthcare Corp., senior note, 8.125%, 04/01/22 USA USD 189,700 0.39400,000 CGG SA, senior note, 6.50%, 06/01/21 FRA USD 186,000 0.38200,000 iHeartCommunications Inc., senior secured note, first lien, 9.00%, 12/15/19 USA USD 164,250 0.33200,000 Digicel Group Ltd., senior note, 144A, 7.125%, 04/01/22 BMU USD 155,318 0.32500,000 Concordia International Corp., senior note, 144A, 7.00%, 04/15/23 CAN USD 155,000 0.32100,000 Platform Specialty Products Corp., senior note, 144A, 10.375%, 05/01/21 USA USD 111,000 0.23100,000 T-Mobile USA Inc., senior bond, 6.50%, 01/15/24 USA USD 107,500 0.22100,000 Cloud Crane LLC, secured note, second lien, 144A, 10.125%, 08/01/24 USA USD 107,250 0.22100,000 T-Mobile USA Inc., senior bond, 6.375%, 03/01/25 USA USD 107,125 0.22100,000 TransDigm Inc., senior sub. bond, 6.50%, 07/15/24 USA USD 105,125 0.21100,000 TransDigm Inc., senior sub. bond, 6.50%, 05/15/25 USA USD 105,125 0.21100,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg

SA, first lien, 144A, 5.125%, 07/15/23 USA USD 101,750 0.21100,000 Nextstar Escrow Corp., senior note, 144A, 5.625%, 08/01/24 USA USD 99,500 0.20100,000 MPT Operating Partnership LP/MPT Finance Corp., senior bond, 5.25%, 08/01/26 USA USD 98,250 0.20

80,000 Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, senior secured bond, firstlien, Reg S, 5.625%, 04/15/23 DEU EUR 90,540 0.18

100,000 Tenet Healthcare Corp., senior note, 6.75%, 06/15/23 USA USD 88,250 0.188,563 Vistra Energy Corp., Escrow Account USA USD 12,416 0.02

46,349,898 94.30

Government and Municipal Bonds10,755,972 Government of Uruguay, senior bond, Index Linked, 4.375%, 12/15/28 URY UYU 337,310 0.69

TOTAL BONDS 46,687,208 94.99







Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESOil, Gas & Consumable Fuels

11,515 Goodrich Petroleum Corp. ** USA USD 133,955 0.27


WARRANTSOil, Gas & Consumable Fuels

1,289 Midstates Petroleum Co. Inc., wts., 04/21/20 ** USA USD 0 0.00

Paper & Forest Products14 Verso Corp., wts., 07/25/23 USA USD 0 0.00

TOTAL WARRANTS 0 0.00


500,000 Vistra Energy Corp., Escrow Account ** USA USD 5,800 0.01400,000 Midstates Petroleum Co. Inc./Midstates Petroleum Co. LLC, Escrow Account ** USA USD 0 0.00

50,000 NewPage Corp., Escrow Account ** USA USD 0 0.00

5,800 0.01










Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAirport Services

22,473 Aena SA ESP EUR 3,065,715 4.768,000 Flughafen Zuerich AG CHE CHF 1,483,896 2.30

17,230 Grupo Aeroportuario del Pacifico SAB de CV, ADR MEX USD 1,421,820 2.2029,200 Japan Airport Terminal Co. Ltd. JPN JPY 1,055,392 1.64

209,282 Auckland International Airport Ltd. NZL NZD 908,676 1.41190,800 SATS Ltd. SGP SGD 639,119 0.99118,914 Sydney Airport AUS AUD 513,992 0.80494,000 Beijing Capital International Airport Co. Ltd. CHN HKD 499,447 0.77

1,608 Grupo Aeroportuario del Sureste SAB de CV, ADR MEX USD 231,375 0.3647,680 BBA Aviation PLC GBR GBP 166,395 0.26

9,985,827 15.49


9,830 Eiffage SA FRA EUR 685,232 1.0616,490 Ferrovial SA ESP EUR 294,877 0.46

1,679,944 2.61

Electric Utilities24,760 NextEra Energy Inc. USA USD 2,957,830 4.5944,090 PG&E Corp. USA USD 2,679,349 4.16

446,760 Enel SpA ITA EUR 1,968,699 3.05289,221 Iberdrola SA ESP EUR 1,897,120 2.94

32,850 Xcel Energy Inc. USA USD 1,336,995 2.0732,660 Exelon Corp. USA USD 1,159,103 1.8018,190 American Electric Power Co. Inc. USA USD 1,145,242 1.7831,900 Emera Inc. CAN CAD 1,078,300 1.6712,130 Edison International USA USD 873,239 1.36

9,430 Eversource Energy USA USD 520,819 0.81518,385 Adani Transmissions Ltd. IND INR 432,912 0.67

35,000 CLP Holdings Ltd. HKG HKD 321,587 0.503,650 Duke Energy Corp. USA USD 283,313 0.44

27,050 Enel Americas SA, ADR CHL USD 222,081 0.34

16,876,589 26.18

Gas Utilities13,540 Atmos Energy Corp. USA USD 1,003,991 1.56

Highways & Railtracks527,121 Transurban Group AUS AUD 3,925,424 6.09

95,399 Atlantia SpA ITA EUR 2,234,433 3.4787,170 Groupe Eurotunnel SE FRA EUR 828,601 1.2842,221 Abertis Infraestructuras SA ESP EUR 590,629 0.92

232,192 Qube Logistics Holdings Ltd. AUS AUD 408,821 0.63294,000 Jiangsu Expressway Co. Ltd., H CHN HKD 371,552 0.58

97,940 Macquarie Atlas Roads Group AUS AUD 356,901 0.55

8,716,361 13.52

Independent Power Producers & Energy Traders34,177 Uniper SE DEU EUR 471,629 0.73

Integrated Telecommunication Services22,403 Cellnex Telecom SAU ESP EUR 322,117 0.5040,362 Bharti Infratel Ltd. IND INR 203,994 0.32

526,111 0.82

Marine Ports & Services27,851 DP World Ltd. ARE USD 487,671 0.76

377,000 COSCO Shipping Ports Ltd. CHN HKD 378,726 0.59

866,397 1.35

Multi-Utilities164,970 National Grid PLC GBR GBP 1,933,825 3.00

13,160 DTE Energy Co. USA USD 1,296,391 2.018,800 Sempra Energy USA USD 885,632 1.38

34,790 Veolia Environnement FRA EUR 592,103 0.926,740 Dominion Resources Inc. USA USD 516,217 0.80

114,450 Centrica PLC GBR GBP 330,046 0.514,110 Public Service Enterprise Group Inc. USA USD 180,347 0.28

5,734,561 8.90

Oil & Gas Storage & Transportation63,854 TransCanada Corp. CAN CAD 2,878,851 4.4753,348 Enbridge Inc. CAN CAD 2,244,684 3.4877,490 Cheniere Energy Partners LP Holdings LLC USA USD 1,733,452 2.6938,670 Spectra Energy Corp. USA USD 1,588,950 2.4764,890 Kinder Morgan Inc. USA USD 1,343,872 2.0838,350 The Williams Cos. Inc. USA USD 1,194,219 1.8559,619 Energy Transfer Equity LP USA USD 1,151,243 1.7922,260 Pembina Pipeline Corp. CAN CAD 695,584 1.0812,930 Cheniere Energy Inc. USA USD 535,690 0.83


— Franklin Global Listed Infrastructure Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Oil & Gas Storage & Transportation (continued)9,260 Targa Resources Corp. USA USD 519,208 0.81

13,901 EQT GP Holdings LP USA USD 350,444 0.5416,277 Ultrapar Participacoes SA, ADR BRA USD 337,585 0.52

14,573,782 22.61

Renewable Electricity107,750 EDP Renovaveis SA ESP EUR 684,329 1.06

31,470 Pattern Energy Group Inc. USA USD 597,615 0.9327,700 Boralex Inc., A CAN CAD 395,037 0.61

1,676,981 2.60

Water Utilities9,930 American Water Works Co. Inc. USA USD 718,535 1.11

99,700 Cia de Saneamento do Parana, pfd. BRA BRL 329,301 0.51238,000 Guangdong Investment Ltd. CHN HKD 314,284 0.49424,000 Beijing Enterprises Water Group Ltd. CHN HKD 282,138 0.44

1,644,258 2.55

TOTAL SHARES 63,756,431 98.92




— Franklin Global Listed Infrastructure Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


15,824 McDonald’s Corp. USA USD 1,830,543 0.849,850 LVMH Moet Hennessy Louis Vuitton SE FRA EUR 1,786,790 0.82

99,307 Compass Group PLC GBR GBP 1,745,099 0.8063,267 Hennes & Mauritz AB, B SWE SEK 1,672,651 0.7616,768 Next PLC GBR GBP 978,209 0.4521,218 Best Buy Co. Inc. USA USD 860,456 0.3921,335 Coach Inc. USA USD 710,085 0.3213,319 Nordstrom Inc. USA USD 606,710 0.28

132,916 Kingfisher PLC GBR GBP 545,101 0.2524,873 Shaw Communications Inc. CAN CAD 474,260 0.22

110,760 Marks & Spencer Group PLC GBR GBP 453,848 0.219,532 Leggett & Platt Inc. USA USD 442,810 0.208,353 Garmin Ltd. USA USD 384,943 0.186,349 Hugo Boss AG DEU EUR 369,067 0.177,806 Nokian Renkaat OYJ FIN EUR 276,489 0.13

33,976 Truworths International Ltd. ZAF ZAR 187,252 0.0853,479 William Hill PLC GBR GBP 181,694 0.0845,981 Yue Yuen Industrial Holdings Ltd. HKG HKD 158,637 0.07


13,758,663 6.29

Consumer Staples27,311 Altria Group Inc. USA USD 1,755,151 0.8031,533 British American Tobacco PLC GBR GBP 1,706,113 0.7815,663 Kimberly-Clark Corp. USA USD 1,698,785 0.7842,192 Unilever NV, IDR GBR EUR 1,650,340 0.7518,516 Philip Morris International Inc. USA USD 1,609,987 0.74

7,374 KT&G Corp. KOR KRW 586,310 0.2715,003 Swedish Match AB SWE SEK 453,626 0.2119,923 British American Tobacco Malaysia Bhd. MYS MYR 188,249 0.0911,807 The Spar Group Ltd. ZAF ZAR 162,194 0.07

9,810,755 4.49

Energy11,575 Keyera Corp. CAN CAD 331,465 0.15

5,458 Spectra Energy Corp. USA USD 213,143 0.104,400 TransCanada Corp. CAN USD 188,804 0.094,664 Enbridge Inc. CAN USD 186,702 0.08

920,114 0.42

Financials81,056 AXA SA FRA EUR 1,944,128 0.8911,660 Allianz SE DEU EUR 1,830,620 0.8432,203 Commonwealth Bank of Australia AUS AUD 1,820,013 0.83

6,847 Zurich Insurance Group AG CHE CHF 1,791,685 0.8224,761 T. Rowe Price Group Inc. USA USD 1,771,063 0.8119,240 Swiss Re AG CHE CHF 1,732,669 0.79

361,727 Legal & General Group PLC GBR GBP 1,048,555 0.4876,014 United Overseas Bank Ltd. SGP SGD 1,017,857 0.47

234,194 FirstRand Ltd. ZAF ZAR 861,394 0.40327,076 Old Mutual PLC GBR GBP 793,793 0.36

75,472 Standard Bank Group Ltd. ZAF ZAR 792,271 0.3610,123 Cincinnati Financial Corp. USA USD 728,775 0.3330,366 CI Financial Corp. CAN CAD 620,476 0.28

125,223 Singapore Exchange Ltd. SGP SGD 588,519 0.2711,793 Arthur J. Gallagher & Co. USA USD 582,365 0.2712,722 Eaton Vance Corp. USA USD 506,365 0.23

109,736 Sanlam Ltd. ZAF ZAR 477,484 0.2213,305 Provident Financial PLC GBR GBP 443,779 0.2017,575 Great-West Lifeco Inc. CAN CAD 437,480 0.20

9,991 SCOR SE FRA EUR 328,005 0.1599,061 Aberdeen Asset Management PLC GBR GBP 298,402 0.1453,119 RMB Holdings Ltd. ZAF ZAR 243,993 0.1112,899 Nedbank Group Ltd. ZAF ZAR 212,486 0.10

1,596,896 Banco de Chile CHL CLP 176,784 0.089,176 Tryg A/S DNK DKK 157,644 0.07

55,221 Rand Merchant Investment Holdings Ltd. ZAF ZAR 152,036 0.0776,553 Dubai Islamic Bank PJSC ARE AED 110,334 0.05

21,468,975 9.82

Health Care23,176 Danaher Corp. USA USD 1,714,522 0.7824,481 Eli Lilly & Co. USA USD 1,711,250 0.78

7,720 Roche Holding AG CHE CHF 1,675,754 0.7715,335 Eisai Co. Ltd. JPN JPY 836,340 0.3825,089 Sonic Healthcare Ltd. AUS AUD 368,210 0.17

6,306,076 2.88


— Franklin Global Multi-Asset Income Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Industrials35,541 Emerson Electric Co. USA USD 1,883,112 0.8686,800 ABB Ltd. CHE CHF 1,739,952 0.80

7,256 Lockheed Martin Corp. USA USD 1,723,593 0.7952,861 Atlas Copco AB, A SWE SEK 1,530,452 0.7029,405 Kone OYJ, B FIN EUR 1,251,771 0.57

117,952 Brambles Ltd. AUS AUD 1,003,056 0.46482 SGS SA CHE CHF 932,009 0.43

30,798 Atlas Copco AB SWE SEK 798,813 0.3620,179 Wolters Kluwer NV NLD EUR 694,561 0.32

9,133 Dover Corp. USA USD 650,386 0.3019,978 Skanska AB, B SWE SEK 448,347 0.20

2,098 Societe BIC SA FRA EUR 270,957 0.12165,296 ComfortDelGro Corp. Ltd. SGP SGD 267,992 0.12

98,973 Singapore Technologies Engineering Ltd. SGP SGD 209,837 0.1024,844 Grupo Aeroportuario del Pacifico SAB de CV MEX MXN 194,121 0.09

5,608 Boskalis Westminster NLD EUR 185,008 0.08895 Flughafen Zuerich AG CHE CHF 157,775 0.07

9,298 DP World Ltd. ARE USD 154,731 0.071,171 Aena SA ESP EUR 151,820 0.072,230 Vinci SA FRA EUR 144,281 0.078,102 Ferrovial SA ESP EUR 137,694 0.06

14,670 Groupe Eurotunnel SE FRA EUR 132,529 0.0617,890 Transurban Group AUS AUD 126,616 0.0630,312 Sydney Airport AUS AUD 124,520 0.06

1,523 Grupo Aeroportuario del Pacifico SAB de CV, ADR MEX USD 119,443 0.05

15,033,376 6.87

Information Technology51,402 Intel Corp. USA USD 1,771,860 0.8129,358 Paychex Inc. USA USD 1,698,646 0.7861,376 CANON Inc. JPN JPY 1,644,219 0.7512,328 KLA-Tencor Corp. USA USD 921,847 0.4222,412 Maxim Integrated Products Inc. USA USD 821,546 0.3717,934 CA Inc. USA USD 541,497 0.2517,600 Simplo Technology Co. Ltd. TWN TWD 47,880 0.02

7,447,495 3.40

Materials20,528 BASF SE DEU EUR 1,812,828 0.8311,799 Air Products and Chemicals Inc. USA USD 1,612,747 0.74

3,425,575 1.57

Real Estate2,610 Extra Space Storage Inc. USA USD 191,595 0.091,110 Simon Property Group Inc. USA USD 187,430 0.091,600 American Tower Corp. USA USD 160,699 0.073,630 Apartment Investment & Management Co., A USA USD 156,799 0.074,120 UDR Inc. USA USD 142,841 0.071,760 Coresite Realty Corp. USA USD 132,761 0.064,970 First Industrial Realty Trust Inc. USA USD 132,492 0.066,000 Mitsui Fudosan Co. Ltd. JPN JPY 131,955 0.061,240 Alexandria Real Estate Equities Inc. USA USD 130,965 0.068,150 Summit Hotel Properties Inc. USA USD 124,163 0.062,230 Realty Income Corp. USA USD 121,821 0.062,030 Ventas Inc. USA USD 120,619 0.061,670 Kilroy Realty Corp. USA USD 116,211 0.051,730 Regency Centers Corp. USA USD 113,366 0.05

18,000 Link REIT HKG HKD 111,186 0.054,400 Duke Realty Corp. USA USD 111,066 0.051,580 Equity Lifestyle Properties Inc. USA USD 108,266 0.05

23 Activia Properties Inc. JPN JPY 103,035 0.05850 Boston Properties Inc. USA USD 101,609 0.05

3,220 Vonovia SE DEU EUR 99,514 0.0531,204 Scentre Group AUS AUD 99,295 0.05

19 Japan Real Estate Investment Corp. JPN JPY 98,401 0.044,090 General Growth Properties Inc. USA USD 97,100 0.04

59 Hulic REIT Inc. JPN JPY 94,067 0.0493,000 New World Development Co. Ltd. HKG HKD 93,464 0.04

4,000 Smart Real Estate Investment Trust CAN CAD 91,415 0.0413,565 Dexus Property Group AUS AUD 89,494 0.04

390 Unibail-Rodamco SE FRA EUR 88,432 0.042,140 Education Realty Trust Inc. USA USD 86,031 0.044,250 Physicians Realty Trust USA USD 76,582 0.036,120 Land Securities Group PLC GBR GBP 76,378 0.03

36,793 Vicinity Centres AUS AUD 75,446 0.033,030 Kimco Realty Corp. USA USD 72,453 0.03

50,000 Sino Land Co. Ltd. HKG HKD 71,207 0.0312,700 City Developments Ltd. SGP SGD 69,024 0.03

1,620 Klepierre FRA EUR 60,499 0.031,530 Derwent London PLC GBR GBP 49,653 0.026,200 Great Portland Estates PLC GBR GBP 48,524 0.02






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Real Estate (continued)6,410 Unite Group PLC GBR GBP 45,477 0.024,055 Hispania Activos Inmobiliarios SOCIMI SA ESP EUR 45,396 0.021,350 ADO Properties SA DEU EUR 43,214 0.022,470 Hufvudstaden AB, A SWE SEK 37,083 0.022,320 Fabege AB SWE SEK 36,042 0.023,000 Sun Hung Kai Properties Ltd. HKG HKD 36,033 0.02

54,100 Frasers Logistics & Industrial Trust SGP SGD 32,847 0.02

4,311,950 1.97

Telecommunication Services70,571 NTT DoCoMo Inc. JPN JPY 1,527,929 0.70

390,833 Telstra Corp. Ltd. AUS AUD 1,366,972 0.62560,055 Singapore Telecommunications Ltd. SGP SGD 1,341,797 0.61

23,909 Rogers Communications Inc., B CAN CAD 876,390 0.401,903 Swisscom AG CHE CHF 809,995 0.37

56,646 Telenor ASA NOR NOK 803,891 0.37125,002 Emirates Telecommunications Group Co. PJSC ARE AED 608,089 0.28

10,287 BCE Inc. CAN CAD 422,505 0.19134,934 Taiwan Mobile Co. Ltd. TWN TWD 410,943 0.19

12,946 TELUS Corp. CAN CAD 391,708 0.1872,489 StarHub Ltd. SGP SGD 133,703 0.06

8,693,922 3.97

Utilities102,426 CLP Holdings Ltd. HKG HKD 894,423 0.41

27,085 Red Electrica Corp. SA ESP EUR 485,499 0.221,910 DTE Energy Co. USA USD 178,820 0.082,350 Atmos Energy Corp. USA USD 165,608 0.081,450 NextEra Energy Inc. USA USD 164,624 0.081,690 Sempra Energy USA USD 161,644 0.074,320 DONG Energy AS DNK DKK 155,526 0.072,240 American Water Works Co. Inc. USA USD 154,045 0.07

24,288 Iberdrola SA ESP EUR 151,411 0.0736,146 Enel SpA ITA EUR 151,380 0.0723,319 Apa Group AUS AUD 137,053 0.06

108,000 Guangdong Investment Ltd. CHN HKD 135,541 0.0620,840 EDP Renovaveis SA ESP EUR 125,790 0.06

4,820 Severn Trent PLC GBR GBP 125,387 0.067,350 Veolia Environnement FRA EUR 118,886 0.064,866 Enagas SA ESP EUR 117,392 0.05

10,480 National Grid PLC GBR GBP 116,755 0.051,786 Qatar Electricity & Water Co. QSC QAT QAR 105,813 0.05

3,645,597 1.67

TOTAL SHARES 94,822,498 43.35


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETINVESTMENTS FUNDSFinancials

550,863 FTSIIF Franklin Emerging Market Corporate Debt Fund, Class Y (Mdis) EUR LUX EUR 5,861,182 2.68489,587 FTIF Templeton Emerging Markets Bond Fund, Class Y (Mdis) USD LUX USD 4,452,909 2.04

10,314,091 4.72


WARRANTSFinancials




1,390,000 Merrill Lynch & Co. Inc., senior note, 6.875%, 04/25/18 USA USD 1,404,397 0.64884,000 The Goldman Sachs Group Inc., senior note, 5.75%, 01/24/22 USA USD 944,653 0.43790,000 Verizon Communications Inc., senior bond, 6.55%, 09/15/43 USA USD 939,396 0.43800,000 Alibaba Group Holding Ltd., senior note, 2.50%, 11/28/19 CHN USD 763,699 0.35760,000 AT&T Inc., senior note, 2.45%, 06/30/20 USA USD 717,349 0.33725,000 JPMorgan Chase & Co., senior note, 3.90%, 07/15/25 USA USD 708,355 0.32669,000 Morgan Stanley, senior note, 5.50%, 07/28/21 USA USD 704,668 0.32740,000 The Coca-Cola Co., senior note, 1.375%, 05/30/19 USA USD 698,681 0.32765,000 Danone SA, senior note, 144A, 2.589%, 11/02/23 FRA USD 698,046 0.32700,000 Kraft Heinz Foods Co., senior bond, 5.20%, 07/15/45 USA USD 696,521 0.32470,000 Citigroup Inc., senior bond, 8.125%, 07/15/39 USA USD 664,781 0.30740,000 Siemens Financieringsmaatschappij NV, senior note, 144A, 2.00%, 09/15/23 DEU USD 662,536 0.30655,000 Anheuser-Busch InBev Finance Inc., senior bond, 4.70%, 02/01/36 BEL USD 656,627 0.30480,000 Wal-Mart Stores Inc., senior bond, 6.20%, 04/15/38 USA USD 601,546 0.28612,000 Comcast Corp., senior bond, 3.375%, 08/15/25 USA USD 585,012 0.27578,000 General Electric Co., junior sub. bond, 5.00% to 01/21/21, FRN thereafter, Perpetual USA USD 570,721 0.26595,000 CVS Health Corp., senior note, 2.25%, 12/05/18 USA USD 570,581 0.26585,000 Walgreens Boots Alliance Inc., senior note, 3.80%, 11/18/24 USA USD 566,111 0.26581,000 American Tower Corp., senior note, 3.40%, 02/15/19 USA USD 564,378 0.26500,000 AXA SA, sub. bond, Reg S, 5.25% to 04/16/20, FRN thereafter, 04/16/40 FRA EUR 557,572 0.25






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)500,000 Allianz SE, sub. note, Reg S, 4.75% to 10/24/23, FRN thereafter, Perpetual DEU EUR 554,250 0.25400,000 Telefonica Emisiones S.A.U., senior bond, Reg S, 5.289%, 12/09/22 ESP GBP 548,781 0.25500,000 Compass Group PLC, senior note, Reg S, 1.875%, 01/27/23 GBR EUR 539,665 0.25595,000 Marriott International Inc., senior bond, 3.125%, 06/15/26 USA USD 535,537 0.24500,000 ABB Finance BV, senior note, Reg S, 2.625%, 03/26/19 CHE EUR 529,967 0.24500,000 Skandinaviska Enskilda Banken AB, sub. bond, Reg S, 2.50% to 05/28/21, FRN

thereafter, 05/28/26 SWE EUR 527,365 0.24500,000 Anheuser-Busch InBev SA/NV, senior note, Reg S, 1.50%, 03/17/25 BEL EUR 521,008 0.24500,000 Rabobank Nederland, sub. bond, Reg S, 2.50% to 05/26/21, FRN thereafter, 05/26/26 NLD EUR 519,748 0.24400,000 Bupa Finance PLC, sub. note, Reg S, 5.00%, 04/25/23 GBR GBP 508,767 0.23500,000 Commonwealth Bank of Australia, sub. bond, Reg S, 2.00% to 04/21/22, FRN

thereafter, 04/22/27 AUS EUR 504,385 0.23525,000 Dollar General Corp., senior bond, 3.25%, 04/15/23 USA USD 492,541 0.23485,000 Charter Communications Operating LLC/Charter Communications Operating Capital

Corp., senior secured note, first lien, 4.464%, 07/23/22 USA USD 481,779 0.22400,000 APT Pipelines Ltd., senior bond, Reg S, 3.50%, 03/22/30 AUS GBP 480,333 0.22500,000 Glencore Funding LLC, senior note, 144A, 4.125%, 05/30/23 CHE USD 478,876 0.22500,000 Daimler Finance North America LLC, senior note, 144A, 2.375%, 08/01/18 DEU USD 478,823 0.22450,000 Danske Bank AS, sub. note, Reg S, FRN, 3.875%, 10/04/23 † DNK EUR 477,068 0.22470,000 Baxalta Inc., senior bond, 5.25%, 06/23/45 USA USD 476,982 0.22400,000 Intesa Sanpaolo SpA, senior note, Reg S, 4.00%, 10/30/23 ITA EUR 470,750 0.22500,000 ATF Netherlands BV, senior note, Reg S, 1.50%, 07/15/24 DEU EUR 470,168 0.22500,000 Prudential Financial Inc., junior sub. bond, 5.20% to 03/15/24, FRN thereafter,

03/15/44 USA USD 470,167 0.21400,000 Orange SA, senior bond, Reg S, 3.125%, 01/09/24 FRA EUR 466,608 0.21450,000 Telstra Corp. Ltd., senior note, 144A, 4.80%, 10/12/21 AUS USD 466,393 0.21410,000 Reynolds American Inc., senior bond, 5.85%, 08/15/45 USA USD 462,271 0.21400,000 WPP Finance 2013, senior note, Reg S, 3.00%, 11/20/23 GBR EUR 462,180 0.21450,000 Gilead Sciences Inc., senior note, 4.40%, 12/01/21 USA USD 459,986 0.21400,000 National Grid Gas Finance PLC, senior bond, Reg S, 2.125%, 09/22/28 GBR GBP 458,894 0.21400,000 BHP Billiton Finance Ltd., sub. bond, Reg S, 5.625% to 10/22/24, FRN thereafter,

10/22/79 AUS EUR 457,034 0.21400,000 Bacardi Ltd., senior note, Reg S, 2.75%, 07/03/23 BMU EUR 445,398 0.20400,000 Carlsberg Breweries A/S, senior note, Reg S, 2.50%, 05/28/24 DNK EUR 440,896 0.20400,000 Ford Motor Credit Co. LLC, senior note, 8.125%, 01/15/20 USA USD 438,432 0.20400,000 Kerry Group Financial Services, senior note, Reg S, 2.375%, 09/10/25 IRL EUR 437,718 0.20460,000 ANZ New Zealand International Ltd. of London, senior note, 144A, 2.75%, 02/03/21 NZL USD 437,324 0.20400,000 Standard Chartered PLC, senior note, Reg S, 4.125%, 01/18/19 GBR EUR 432,210 0.20400,000 Klepierre, senior note, Reg S, 1.75%, 11/06/24 FRA EUR 424,934 0.19400,000 Yorkshire Building Society, senior note, Reg S, 2.125%, 03/18/19 GBR EUR 416,558 0.19365,000 21st Century Fox America Inc., senior bond, 6.40%, 12/15/35 USA USD 415,022 0.19400,000 State Grid Europe Development (2014) PLC, senior note, Reg S, 1.50%, 01/26/22 CHN EUR 412,220 0.19400,000 Iberdrola Finanzas, senior note, Reg S, 1.00%, 03/07/24 ESP EUR 404,746 0.19425,000 HSBC USA Inc., senior note, 2.35%, 03/05/20 USA USD 400,679 0.18400,000 Chorus Ltd., senior note, Reg S, 1.125%, 10/18/23 NZL EUR 398,680 0.18415,000 Simon Property Group LP, senior bond, 3.375%, 10/01/24 USA USD 398,522 0.18370,000 Kinder Morgan Energy Partners LP, senior bond, 6.50%, 09/01/39 USA USD 389,227 0.18375,000 LYB International Finance BV, senior note, 4.00%, 07/15/23 USA USD 372,976 0.17385,000 Transurban Finance Co. Pty. Ltd., senior secured bond, 144A, 4.125%, 02/02/26 AUS USD 372,629 0.17410,000 Realty Income Corp., senior bond, 3.00%, 01/15/27 USA USD 367,074 0.17350,000 Western Digital Corp., senior secured note, 144A, 7.375%, 04/01/23 USA USD 366,732 0.17385,000 Anthem Inc., senior bond, 3.30%, 01/15/23 USA USD 365,397 0.17300,000 Oracle Corp., senior bond, 6.125%, 07/08/39 USA USD 358,913 0.16375,000 Wells Fargo & Co., senior note, 3.45%, 02/13/23 USA USD 357,615 0.16350,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 5.00%, 10/01/21 NLD USD 350,111 0.16375,000 Woodside Finance Ltd., senior note, 144A, 3.65%, 03/05/25 AUS USD 348,322 0.16325,000 Georgia-Pacific LLC, 144A, 3.734%, 07/15/23 USA USD 318,365 0.15315,000 Hyundai Capital America, senior note, 144A, 2.00%, 03/19/18 USA USD 299,362 0.14300,000 Asciano Finance Ltd., senior note, 144A, 5.00%, 04/07/18 AUS USD 295,261 0.14300,000 EDF SA, sub. note, 144A, 5.25% to 01/29/23, FRN thereafter, Perpetual FRA USD 270,019 0.12280,000 S&P Global Inc., senior note, 2.50%, 08/15/18 USA USD 268,250 0.12200,000 Tesco PLC, senior bond, 6.125%, 02/24/22 GBR GBP 266,261 0.12255,000 Enterprise Products Operating LLC, senior bond, 3.90%, 02/15/24 USA USD 250,054 0.11230,000 HCA Inc., senior secured bond, first lien, 5.875%, 03/15/22 USA USD 236,077 0.11240,000 WPX Energy Inc., senior note, 6.00%, 01/15/22 USA USD 234,936 0.11220,000 MetLife Inc., junior sub. note, 6.40% to 12/15/36, FRN thereafter, 12/15/66 USA USD 226,335 0.10200,000 Heathrow Funding Ltd., senior secured bond, 144A, 4.875%, 07/15/23 GBR USD 203,889 0.09195,000 ArcelorMittal, senior bond, 7.75%, 03/01/41 FRA USD 197,761 0.09195,000 CIT Group Inc., secured note, 144A, 5.50%, 02/15/19 USA USD 195,982 0.09200,000 Navient Corp., senior note, 7.25%, 09/25/23 USA USD 195,780 0.09200,000 PSEG Power LLC, senior note, 3.00%, 06/15/21 USA USD 190,690 0.09210,000 Ensco PLC, senior bond, 4.50%, 10/01/24 USA USD 171,640 0.08180,000 NOVA Chemicals Corp., senior bond, 144A, 5.00%, 05/01/25 CAN USD 168,023 0.08210,000 Weatherford International Ltd., senior bond, 7.00%, 03/15/38 USA USD 166,651 0.08158,000 Sprint Communications Inc., senior note, 144A, 9.00%, 11/15/18 USA USD 165,929 0.08145,000 CSC Holdings LLC, senior note, 6.75%, 11/15/21 USA USD 148,487 0.07150,000 QEP Resources Inc., senior bond, 5.375%, 10/01/22 USA USD 143,628 0.07130,000 Constellation Brands Inc., senior note, 4.25%, 05/01/23 USA USD 128,726 0.06150,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 127,590 0.06130,000 Brixmor Operating Partnership LP, senior note, 3.875%, 08/15/22 USA USD 125,975 0.06120,000 CenturyLink Inc., senior bond, 6.75%, 12/01/23 USA USD 117,040 0.05






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Corporate Bonds (continued)115,000 Viacom Inc., senior note, 2.50%, 09/01/18 USA USD 109,647 0.05

82,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 84,498 0.0490,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 7.50%, 07/15/21 USA USD 72,812 0.0365,000 Aviation Capital Group Corp., 144A, 6.75%, 04/06/21 USA USD 71,428 0.0365,000 Sealed Air Corp., senior note, 144A, 6.50%, 12/01/20 USA USD 69,936 0.0350,000 Mitsui Sumitomo Insurance Co. Ltd., junior sub. note, 144A, 7.00% to 03/15/22, FRN

thereafter, 03/15/72 JPN USD 53,875 0.0240,000 Neuberger Berman Group LLC/Neuberger Berman Finance Corp., senior note, 144A,

5.875%, 03/15/22 USA USD 39,346 0.02

42,742,544 19.54

Government and Municipal Bonds5,024,383 Italy Treasury Bond, senior bond, Reg S, Index Linked, 3.10%, 09/15/26 ITA EUR 6,144,318 2.81

22,000 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 5,932,094 2.71360,040,000 Asian Development Bank, 6.45%, 08/08/21 SP INR 5,163,928 2.36

5,335,000 U.S. Treasury Note, 1.00%, 11/30/18 USA USD 5,053,638 2.31264,000,000 International Finance Corp., senior note, Reg S, 11.00%, 01/21/20 SP RUB 4,441,125 2.03

1,824,000 Government of Mexico, senior bond, 5.50%, 02/17/20 MEX EUR 2,076,888 0.95372,000 Government of Mexico, senior note, 4.00%, 10/02/23 MEX USD 355,074 0.16

75,000 Florida State Hurricane Catastrophe Fund Finance Corp. Revenue, Series A, 2.995%,07/01/20 USA USD 73,378 0.04

75,000 Illinois State GO, 5.10%, 06/01/33 USA USD 63,069 0.03

29,303,512 13.40

Securities Maturing Within One Year9,858,000 Government of New Zealand, senior bond, Reg S, 6.00%, 12/15/17 NZL NZD 6,757,187 3.093,306,000 U.S. Treasury Note, 3.125%, 01/31/17 USA USD 3,148,646 1.44

495,000 Bunge Ltd. Finance Corp., senior note, 3.20%, 06/15/17 USA USD 474,023 0.22423,000 Engie SA, senior note, 144A, 1.625%, 10/10/17 FRA USD 402,365 0.18310,000 Santander UK PLC, senior note, 1.375%, 03/13/17 GBR USD 294,223 0.13255,000 Becton Dickinson and Co., senior note, 1.80%, 12/15/17 USA USD 242,941 0.11230,000 DP World Sukuk Ltd., 144A, 6.25%, 07/02/17 ARE USD 224,075 0.10200,000 Motability Operations Group PLC, senior note, Reg S, 3.75%, 11/29/17 GBR EUR 207,077 0.10205,000 Freeport-McMoRan Inc., senior note, 2.30%, 11/14/17 USA USD 194,343 0.09100,000 Anheuser-Busch InBev Worldwide Inc., senior note, 1.375%, 07/15/17 BEL USD 95,131 0.04

12,040,011 5.50

TOTAL BONDS 84,086,067 38.44









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TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESDiversified Real Estate Activities

336,706 Mitsui Fudosan Co. Ltd. JPN JPY 7,791,520 2.82358,593 Mitsubishi Estate Co. Ltd. JPN JPY 7,139,957 2.58233,559 Sun Hung Kai Properties Ltd. HKG HKD 2,951,677 1.07

2,497,000 New World Development Co. Ltd. HKG HKD 2,640,454 0.961,259,116 CapitaLand Ltd. SGP SGD 2,626,238 0.95

154,198 Tokyo Tatemono Co. Ltd. JPN JPY 2,061,777 0.75311,700 City Developments Ltd. SGP SGD 1,782,496 0.64169,850 The Wharf Holdings Ltd. HKG HKD 1,129,121 0.41

28,123,240 10.18

Diversified REIT’s263,529 Land Securities Group PLC GBR GBP 3,460,537 1.25400,000 VEREIT Inc. USA USD 3,384,000 1.23

436 Kenedix Office Investment Corp. JPN JPY 2,506,454 0.91196,700 Spirit Realty Capital Inc. USA USD 2,136,162 0.77164,583 Hispania Activos Inmobiliarios SOCIMI SA ESP EUR 1,938,685 0.70

395 Activia Properties Inc. JPN JPY 1,861,885 0.681,185 United Urban Investment Corp. JPN JPY 1,803,426 0.65

907 Hulic REIT Inc. JPN JPY 1,521,560 0.55

18,612,709 6.74

Health Care REIT’s92,835 Ventas Inc. USA USD 5,804,044 2.1079,375 Welltower Inc. USA USD 5,312,569 1.92

134,435 HCP Inc. USA USD 3,995,408 1.4586,300 Physicians Realty Trust USA USD 1,636,248 0.59

16,748,269 6.06

Hotel & Resort REIT’s193,378 Host Hotels & Resorts Inc. USA USD 3,643,242 1.32135,900 Summit Hotel Properties Inc. USA USD 2,178,477 0.79119,856 Sunstone Hotel Investors Inc. USA USD 1,827,804 0.66

207 Hoshino Resorts REIT Inc. JPN JPY 1,080,200 0.39

8,729,723 3.16

Hotels, Resorts & Cruise Lines31,080 Hilton Worldwide Holdings Inc. USA USD 845,376 0.31

Industrial REIT’s133,331 Prologis Inc. USA USD 7,038,543 2.55142,100 Duke Realty Corp. USA USD 3,774,176 1.37511,363 Goodman Group AUS AUD 2,630,967 0.95

93,700 First Industrial Realty Trust Inc. USA USD 2,628,285 0.95463,700 Segro PLC GBR GBP 2,616,708 0.95

905 Nippon Prologis REIT Inc. JPN JPY 1,849,562 0.6771,800 Rexford Industrial Realty Inc. USA USD 1,665,042 0.60

761,330 PLA Administradora Industrial S de RL de CV MEX MXN 959,006 0.351,493,800 Frasers Logistics & Industrial Trust SGP SGD 954,323 0.341,241,530 Mapletree Logistics Trust SGP SGD 874,619 0.32

24,991,231 9.05

Office REIT’s39,860 Boston Properties Inc. USA USD 5,013,591 1.8238,861 Alexandria Real Estate Equities Inc. USA USD 4,318,623 1.5647,827 Kilroy Realty Corp. USA USD 3,501,893 1.2731,649 SL Green Realty Corp. USA USD 3,403,850 1.23

450,622 Dexus Property Group AUS AUD 3,128,124 1.1360,361 Highwoods Properties Inc. USA USD 3,079,014 1.11

450 Japan Real Estate Investment Corp. JPN JPY 2,452,201 0.8984,500 Mack-Cali Realty Corp. USA USD 2,452,190 0.8922,785 Vornado Realty Trust USA USD 2,378,070 0.8660,141 Derwent London PLC GBR GBP 2,053,628 0.74

103,200 Brandywine Realty Trust USA USD 1,703,832 0.62

33,485,016 12.12

Real Estate Development769,000 Cheung Kong Property Holdings Ltd. HKG HKD 4,715,449 1.71

1,207,404 Sino Land Co. Ltd. HKG HKD 1,809,276 0.66330,000 China Resources Land Ltd. CHN HKD 742,176 0.27274,897 China Overseas Land & Investment Ltd. CHN HKD 728,497 0.26

7,995,398 2.90

Real Estate Operating Companies129,230 Deutsche Wohnen AG DEU EUR 4,057,518 1.47121,454 Vonovia SE DEU EUR 3,949,470 1.43266,346 Unite Group PLC GBR GBP 1,988,276 0.72118,901 Hufvudstaden AB, A SWE SEK 1,878,305 0.68110,510 Fabege AB SWE SEK 1,806,409 0.65

51,560 ADO Properties SA, Reg S DEU EUR 1,736,588 0.63404,645 Hysan Development Co. Ltd. HKG HKD 1,672,432 0.60152,752 Hemfosa Fastigheter AB SWE SEK 1,425,363 0.52


— Franklin Global Real Estate Fund —




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assets

Real Estate Operating Companies (continued)85,900 First Capital Realty Inc. CAN CAD 1,322,277 0.4821,445 ADO Properties SA DEU EUR 722,287 0.26

20,558,925 7.44

Residential REIT’s34,679 AvalonBay Communities Inc. USA USD 6,143,385 2.2275,997 Apartment Investment & Management Co., A USA USD 3,454,064 1.25

164,000 American Homes 4 Rent, A USA USD 3,440,720 1.2552,065 Equity Residential USA USD 3,350,903 1.2142,398 Equity Lifestyle Properties Inc. USA USD 3,056,896 1.1129,500 Camden Property Trust USA USD 2,480,065 0.9099,100 Canadian Apartment Properties REIT CAN CAD 2,315,138 0.8449,100 Education Realty Trust Inc. USA USD 2,076,930 0.75

6,259 Essex Property Trust Inc. USA USD 1,455,217 0.5334,286 UDR Inc. USA USD 1,250,753 0.45

2,453 Invincible Investment Corp. JPN JPY 1,105,891 0.40

30,129,962 10.91

Retail REIT’s77,742 Simon Property Group Inc. USA USD 13,812,421 5.0028,551 Unibail-Rodamco SE FRA EUR 6,811,879 2.47

1,618,241 Scentre Group AUS AUD 5,418,233 1.9674,203 Realty Income Corp. USA USD 4,265,189 1.55

598,739 Westfield Corp. AUS AUD 4,052,630 1.4795,542 Klepierre FRA EUR 3,754,266 1.36

567,811 Link REIT HKG HKD 3,690,460 1.3451,764 Regency Centers Corp. USA USD 3,569,128 1.29

126,191 Kimco Realty Corp. USA USD 3,174,966 1.1583,785 Weingarten Realty Investors USA USD 2,998,665 1.09

334,856 Hammerson PLC GBR GBP 2,363,581 0.8688,772 General Growth Properties Inc. USA USD 2,217,525 0.80

1,015,481 Vicinity Centres AUS AUD 2,190,986 0.79135,700 Retail Properties of America Inc., A USA USD 2,080,281 0.75

44,000 National Retail Properties Inc. USA USD 1,944,800 0.7010,966 Federal Realty Investment Trust USA USD 1,558,378 0.5661,500 Smart Real Estate Investment Trust CAN CAD 1,478,876 0.54

111,200 Washington Prime Group Inc. USA USD 1,157,592 0.4215,360 The Macerich Co. USA USD 1,088,102 0.39

67,627,958 24.49

Specialized REIT’s24,017 Public Storage USA USD 5,367,799 1.9545,065 Digital Realty Trust Inc. USA USD 4,428,087 1.6083,026 CubeSmart USA USD 2,222,606 0.8125,502 Coresite Realty Corp. USA USD 2,024,094 0.7318,200 Extra Space Storage Inc. USA USD 1,405,768 0.5121,700 CyrusOne Inc. USA USD 970,641 0.35

16,418,995 5.95

TOTAL SHARES 274,266,802 99.31




— Franklin Global Real Estate Fund —




Number ofshares or


codeTradingcurrency

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assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESCapital Markets

5,826,775 ARA Asset Management Ltd. SGP SGD 6,861,421 4.08589,600 Fairfax India Holdings Corp. CAN USD 6,809,880 4.04156,400 Oaktree Capital Group LLC USA USD 5,865,000 3.48

64,400 Deutsche Boerse AG DEU EUR 5,254,241 3.12742,980 FXCM Inc., A USA USD 5,238,009 3.11

8,599,700 ABG Sundal Collier Holding ASA NOR NOK 4,917,527 2.92

34,946,078 20.75

Commercial Services & Supplies146,400 ISS A/S DNK DKK 4,940,583 2.93

Electronic Equipment, Instruments & Components752,000 Esprinet SpA ITA EUR 5,602,081 3.33

Energy Equipment & Services1,180,800 Amec Foster Wheeler PLC GBR GBP 6,836,472 4.06

Equity Real Estate Investment Trusts (REIT’s)3,963,248 Green REIT PLC IRL EUR 5,721,418 3.402,733,433 Irish Residential Properties REIT PLC IRL EUR 3,365,058 2.002,615,493 Irish Residential Properties REIT PLC, Reg S IRL EUR 3,219,865 1.91

12,306,341 7.31

Food & Staples Retailing987,000 Total Produce PLC IRL EUR 2,040,695 1.21

Hotels, Restaurants & Leisure1,085,420 Dalata Hotel Group PLC IRL EUR 5,019,436 2.98

538,623 ClubLink Enterprises Ltd. CAN CAD 4,211,753 2.50

9,231,189 5.48

Insurance7,900 Markel Corp. USA USD 7,145,550 4.24

52,400 RenaissanceRe Holdings Ltd. USA USD 7,137,928 4.2412,400 Fairfax Financial Holdings Ltd. CAN CAD 5,988,531 3.5561,800 Arch Capital Group Ltd. USA USD 5,332,722 3.1774,600 ProAssurance Corp. USA USD 4,192,520 2.49

29,797,251 17.69

Leisure products383,776 Beneteau SA FRA EUR 5,552,375 3.30

Machinery1,215,400 Vesuvius PLC GBR GBP 5,918,394 3.52

518,690 Zardoya Otis SA ESP EUR 4,382,498 2.60

10,300,892 6.12

Metals & Mining821,500 Major Drilling Group International Inc. CAN CAD 4,294,705 2.55

Professional Services1,524,476 PageGroup PLC GBR GBP 7,333,300 4.35

646,600 SThree PLC GBR GBP 2,470,190 1.47

9,803,490 5.82

Real Estate Management & Development350,500 Kennedy-Wilson Holdings Inc. USA USD 7,185,250 4.27

2,095,600 Hang Lung Properties Ltd. HKG HKD 4,442,796 2.641,072,200 Countrywide PLC GBR GBP 2,327,892 1.38

13,955,938 8.29

Thrifts & Mortgage Finance397,317 SI Financial Group Inc. USA USD 6,118,682 3.63

Trading Companies & Distributors757,400 Nexeo Solutions Inc. USA USD 7,051,394 4.18763,000 Grafton Group PLC, units consisting of A shares and C shares GBR GBP 5,169,459 3.07

12,220,853 7.25

TOTAL SHARES 167,947,625 99.72




— Franklin Global Small-Mid Cap Growth Fund —




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% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESGold and Diversified Resources

1,075,100 Nevsun Resources Ltd. CAN CAD 3,322,658 1.58437,412 Sandfire Resources NL AUS AUD 1,780,190 0.85328,289 Imperial Metals Corp. CAN CAD 1,481,554 0.71

6,584,402 3.14

Gold Exploration and Development7,615,000 Stornoway Diamond Corp. CAN CAD 5,670,986 2.702,770,800 Ivanhoe Mines Ltd., A CAN CAD 5,241,162 2.501,363,000 Continental Gold Inc. CAN CAD 4,466,190 2.13

464,000 Pretium Resources Inc. CAN CAD 3,842,478 1.839,000,000 Lydian International Ltd. CAN CAD 2,211,796 1.054,306,500 Belo Sun Mining Corp. CAN CAD 2,180,831 1.041,900,000 Dalradian Resources Inc. CAN CAD 1,655,496 0.79

111,400 TMAC Resources Inc. CAN CAD 1,271,792 0.602,300,000 Integra Gold Corp. CAN CAD 959,190 0.46

600,000 Rubicon Minerals Corp. CAN CAD 835,568 0.407,220,799 Nautilus Minerals Inc. CAN CAD 779,726 0.37

780,439 Orla Mining Ltd. CAN CAD 726,503 0.353,179,551 RTG Mining Inc., IDR AUS AUD 504,760 0.24

713,200 Midas Gold Corp. CAN CAD 462,082 0.22800,000 INV Metals Inc. CAN CAD 411,081 0.19223,300 Lion One Metals Ltd. CAN CAD 159,643 0.08

5,278,400 St. Augustine Gold and Copper Ltd. PHL CAD 157,236 0.07174,593 Aurico Metals Inc. CAN CAD 131,322 0.06

5,348,667 Kula Gold Ltd. AUS AUD 84,911 0.04320,000 Lydian International Ltd., 144A CAN CAD 78,642 0.04358,843 RTG Mining Inc. AUS CAD 64,136 0.03

35,000 Chalice Gold Mines Ltd. AUS AUD 3,788 0.00

31,899,319 15.19

Long Life Gold Mines4,712,155 B2Gold Corp. CAN CAD 11,194,351 5.33

749,424 Newcrest Mining Ltd. AUS AUD 10,950,883 5.223,006,050 OceanaGold Corp. AUS CAD 8,753,095 4.17

518,000 Barrick Gold Corp. CAN USD 8,277,640 3.941,178,071 Alamos Gold Inc., A CAN CAD 8,124,023 3.87

707,620 AngloGold Ashanti Ltd., ADR ZAF USD 7,437,086 3.54521,000 Detour Gold Corp. CAN CAD 7,096,433 3.38

2,178,950 Eldorado Gold Corp. CAN CAD 7,010,027 3.341,488,100 Guyana Goldfields Inc. CAN CAD 6,782,225 3.23

412,550 Torex Gold Resources Inc. CAN CAD 6,387,336 3.041,301,000 Centerra Gold Inc. CAN CAD 6,094,199 2.901,242,687 Acacia Mining PLC GBR GBP 5,722,146 2.732,930,000 Centamin PLC EGY GBP 4,998,909 2.38

310,500 Goldcorp Inc. CAN USD 4,222,800 2.01119,000 Newmont Mining Corp. USA USD 4,054,330 1.93

80,935 Agnico Eagle Mines Ltd. CAN CAD 3,402,428 1.6242,900 Randgold Resources Ltd., ADR GBR USD 3,274,986 1.56

13,295,900 Perseus Mining Ltd. AUS AUD 3,214,098 1.53284,400 AngloGold Ashanti Ltd. ZAF ZAR 3,158,528 1.51

1,819,400 Centamin PLC EGY CAD 3,075,691 1.471,348,100 Alacer Gold Corp. USA CAD 2,248,841 1.07

405,700 SEMAFO Inc. CAN CAD 1,335,414 0.6417,000 Agnico Eagle Mines Ltd. CAN USD 714,000 0.34

3,156,976 G-Resources Group Ltd. HKG HKD 57,810 0.03

127,587,279 60.78

Medium Life Gold Mines3,762,762 St Barbara Ltd. AUS AUD 5,539,026 2.64

701,500 IAMGOLD Corp. CAN USD 2,700,775 1.293,134,000 Golden Star Resources Ltd. USA USD 2,336,397 1.116,518,826 Beadell Resources Ltd. AUS AUD 1,270,076 0.61

262,500 Klondex Mines Ltd. CAN CAD 1,221,794 0.581,253,800 Primero Mining Corp. CAN CAD 989,744 0.47

13,849,357 Red 5 Ltd. AUS AUD 869,452 0.41786,000 Teranga Gold Corp. CAN CAD 479,982 0.23183,010 Teranga Gold Corp., IDR CAN AUD 118,854 0.06

15,526,100 7.40

Platinum & Palladium2,327,585 Platinum Group Metals Ltd. CAN USD 3,328,447 1.58

780,400 Impala Platinum Holdings Ltd. ZAF ZAR 2,427,780 1.1678,000 Anglo American Platinum Ltd. ZAF ZAR 1,501,170 0.71

880,960 Platinum Group Metals Ltd. CAN CAD 1,272,760 0.61264,907 Royal Bafokeng Platinum Ltd. ZAF ZAR 686,630 0.33209,860 Northam Platinum Ltd. ZAF ZAR 618,646 0.29569,380 Eastern Platinum Ltd. CAN CAD 186,571 0.09

10,022,004 4.77


— Franklin Gold and Precious Metals Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Silver Mines611,600 Tahoe Resources Inc. USA CAD 5,761,647 2.74227,000 Fresnillo PLC GBR GBP 3,414,282 1.63183,000 MAG Silver Corp. CAN CAD 2,014,254 0.96699,125 Hochschild Mining PLC PER GBP 1,821,474 0.87

13,011,657 6.20

TOTAL SHARES 204,630,761 97.48

WARRANTSGold Exploration and Development

3,562,500 Lydian International Ltd., wts., 11/27/17 CAN CAD 198,978 0.09100,000 Continental Gold Inc., wts., 11/27/17 CAN CAD 63,300 0.03

262,278 0.12



TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESGold Exploration and Development

200,000 Midas Gold Corp., 144A CAN CAD 129,580 0.06


TOTAL TRANSFERABLE SECURITIES DEALT INON ANOTHER REGULATED MARKET 129,580 0.06

TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESGold Exploration and Development

1,500,000 Lion One Metals Ltd. ** CAN CAD 1,024,895 0.4992,724 Orla Mining Ltd., A ** CAN CAD 8,632 0.00

1,033,527 0.49


WARRANTSGold Exploration and Development

1,500,000 Lion One Metals Ltd., wts., 03/16/18 ** CAN CAD 64,222 0.0318,833 RTG Mining Inc., wts., 06/04/17 AUS CAD 0 0.00

64,222 0.03

Long Life Gold Mines3,179,000 Perseus Mining Ltd., wts., 04/19/19 ** AUS AUD 51,548 0.03






— Franklin Gold and Precious Metals Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


671,200 iShares iBoxx USD High Yield Corporate Bond ETF USA USD 58,092,360 2.22



6,826 Midstates Petroleum Co. Inc. USA USD 141,571 0.01

Paper & Forest Products77,811 Verso Corp., A USA USD 552,458 0.02



99,135 Halcon Resources Corp., wts., 09/09/20 USA USD 205,210 0.01




7,720 CEVA Holdings LLC, cvt. pfd., A-2 USA USD 1,736,906 0.073,566 CEVA Holdings LLC USA USD 356,607 0.01


2,139,338 0.08

Electric Utilities941,929 Vistra Energy Corp. USA USD 14,599,899 0.56

Oil, Gas & Consumable Fuels191,411 Titan Energy LLC USA USD 4,593,864 0.18

TOTAL SHARES 21,333,101 0.82


36,200,000 HCA Inc., senior secured note, first lien, 5.00%, 03/15/24 USA USD 37,331,250 1.4330,000,000 Wind Acquisition Finance SA, senior note, second lien, 144A, 7.375%, 04/23/21 ITA USD 31,218,000 1.1930,000,000 Fiat Chrysler Automobiles NV, senior note, 5.25%, 04/15/23 GBR USD 30,693,450 1.1723,500,000 Western Digital Corp., senior note, 144A, 10.50%, 04/01/24 USA USD 27,847,500 1.0725,000,000 MGM Resorts International, senior note, 6.00%, 03/15/23 USA USD 27,062,500 1.0430,000,000 InterGen NV, secured bond, 144A, 7.00%, 06/30/23 NLD USD 26,850,000 1.0327,000,000 CSC Holdings LLC, senior note, 5.25%, 06/01/24 USA USD 26,460,000 1.0125,000,000 Infor (U.S.) Inc., senior note, 6.50%, 05/15/22 USA USD 26,125,000 1.0025,950,000 First Quantum Minerals Ltd., senior note, 144A, 7.00%, 02/15/21 CAN USD 25,939,620 0.9924,100,000 Cortes NP Acquisition Corp., senior note, 144A, 9.25%, 10/15/24 USA USD 25,666,500 0.9825,000,000 Citigroup Inc., junior sub. bond, M, 6.30% to 05/15/24, FRN thereafter, Perpetual USA USD 24,818,750 0.9526,100,000 Dynegy Inc., senior note, 144A, 8.00%, 01/15/25 USA USD 24,468,750 0.9425,000,000 BMC Software Finance Inc., senior note, 144A, 8.125%, 07/15/21 USA USD 23,484,375 0.9023,000,000 Cemex SAB de CV, first lien, 144A, 5.70%, 01/11/25 MEX USD 23,335,455 0.8921,400,000 Cheniere Corpus Christi Holdings LLC, first lien, senior secured note, 144A, 5.875%,

03/31/25 USA USD 21,914,884 0.8422,000,000 The Chemours Co., senior note, 6.625%, 05/15/23 USA USD 21,890,000 0.8420,700,000 Millicom International Cellular SA, senior note, 144A, 6.625%, 10/15/21 LUX USD 21,812,625 0.8321,000,000 Navient Corp., senior note, 7.25%, 09/25/23 USA USD 21,630,000 0.8320,000,000 Sabine Pass Liquefaction LLC, first lien, 5.625%, 02/01/21 USA USD 21,500,000 0.8222,200,000 PulteGroup Inc., senior bond, 5.00%, 01/15/27 USA USD 21,173,250 0.8119,600,000 Post Holdings Inc., senior note, 144A, 6.75%, 12/01/21 USA USD 20,972,000 0.8020,000,000 1011778 BC ULC/New Red Finance Inc., secured note, second lien, 144A, 6.00%,

04/01/22 CAN USD 20,950,000 0.8020,000,000 Sirius XM Radio Inc., senior bond, 144A, 6.00%, 07/15/24 USA USD 20,950,000 0.8019,700,000 Novelis Corp., senior note, 144A, 6.25%, 08/15/24 USA USD 20,931,250 0.8020,000,000 Equinix Inc., senior bond, 5.375%, 04/01/23 USA USD 20,850,000 0.8020,000,000 Sprint Communications Inc., senior note, 6.00%, 11/15/22 USA USD 20,200,000 0.7720,000,000 AMC Networks Inc., senior note, 5.00%, 04/01/24 USA USD 20,125,000 0.7720,000,000 Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC, 144A, 3.36%, 03/20/23 USA USD 20,087,400 0.7720,000,000 Martin Midstream Partners LP/Martin Midstream Finance Corp., senior note, 7.25%,

02/15/21 USA USD 19,850,000 0.7619,800,000 CONSOL Energy Inc., senior note, 5.875%, 04/15/22 USA USD 19,503,000 0.7518,600,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 4.625%,

10/30/20 NLD USD 19,400,265 0.7420,000,000 Horizon Pharma Inc., senior note, 6.625%, 05/01/23 USA USD 19,100,000 0.7318,000,000 DISH DBS Corp., senior note, 5.875%, 07/15/22 USA USD 18,990,000 0.7317,300,000 CIT Group Inc., senior note, 5.375%, 05/15/20 USA USD 18,424,500 0.7018,000,000 Taylor Morrison Communities Inc./Monarch Communities Inc., senior note, 144A,

5.625%, 03/01/24 USA USD 18,270,000 0.7018,000,000 Hughes Satellite Systems Corp., senior bond, 144A, 6.625%, 08/01/26 USA USD 18,135,000 0.6917,500,000 Barminco Finance Pty. Ltd., senior note, 144A, 9.00%, 06/01/18 AUS USD 17,871,875 0.6817,100,000 JBS USA LLC/Finance Inc., senior bond, 144A, 5.875%, 07/15/24 USA USD 17,741,250 0.6816,400,000 T-Mobile USA Inc., senior bond, 6.375%, 03/01/25 USA USD 17,568,500 0.6717,000,000 Unitymedia KabelBW GmbH, senior bond, 144A, 6.125%, 01/15/25 DEU USD 17,552,500 0.6717,900,000 Netflix Inc., senior bond, 144A, 4.375%, 11/15/26 USA USD 17,385,375 0.66


— Franklin High Yield Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)17,800,000 Hanesbrands Inc., senior note, 144A, 4.625%, 05/15/24 USA USD 17,355,000 0.6616,600,000 NRG Yield Operating LLC, senior bond, 5.375%, 08/15/24 USA USD 16,766,000 0.6420,900,000 Talen Energy Supply LLC, senior note, 6.50%, 06/01/25 USA USD 16,249,750 0.6216,000,000 Platform Specialty Products Corp., senior note, 144A, 6.50%, 02/01/22 USA USD 16,200,000 0.6215,000,000 International Game Technology PLC, senior secured note, 144A, 6.25%, 02/15/22 USA USD 16,162,500 0.6215,581,000 Blackboard Inc., secured note, Reg S, 9.75%, 10/15/21 USA USD 16,048,430 0.6115,400,000 Cott Beverages Inc., senior note, 6.75%, 01/01/20 USA USD 15,967,875 0.6115,000,000 KB Home, senior bond, 7.50%, 09/15/22 USA USD 15,900,000 0.6117,747,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 15,883,565 0.6115,000,000 Bank of America Corp., junior sub. bond, M, 8.125% to 05/15/18, FRN thereafter,

Perpetual USA USD 15,600,000 0.6020,000,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.625%, 12/01/21 USA USD 15,600,000 0.6015,200,000 Altice U.S. Finance I Corp., senior secured bond, 144A, 5.50%, 05/15/26 USA USD 15,542,000 0.5915,000,000 First Data Corp., second lien, 144A, 5.75%, 01/15/24 USA USD 15,534,450 0.5915,000,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 5.125%, 02/15/23 USA USD 15,450,000 0.5918,400,000 Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note, 7.75%,

04/15/23 USA USD 15,364,000 0.5915,000,000 JPMorgan Chase & Co., junior sub. bond, R, 6.00% to 08/01/23, FRN thereafter,

Perpetual USA USD 15,093,750 0.5820,000,000 iHeartCommunications Inc., senior secured bond, first lien, 9.00%, 03/01/21 USA USD 14,875,000 0.5715,000,000 Energy Transfer Equity LP, senior secured bond, first lien, 5.50%, 06/01/27 USA USD 14,700,000 0.5614,400,000 Eldorado Gold Corp., senior note, 144A, 6.125%, 12/15/20 CAN USD 14,688,000 0.5614,000,000 CVR Partners LP/CVR Nitrogen Finance Corp., secured note, second lien, 144A,

9.25%, 06/15/23 USA USD 14,472,500 0.5515,000,000 Tenet Healthcare Corp., senior note, 8.125%, 04/01/22 USA USD 14,227,500 0.5413,500,000 Wynn Macau Ltd., senior note, 144A, 5.25%, 10/15/21 MAC USD 13,668,750 0.5214,300,000 CenturyLink Inc., senior bond, 5.625%, 04/01/25 USA USD 13,638,625 0.5214,000,000 Calpine Corp., senior bond, 5.75%, 01/15/25 USA USD 13,580,000 0.5212,900,000 JBS USA LLC/Finance Inc., senior note, 144A, 7.25%, 06/01/21 USA USD 13,448,250 0.5118,800,000 BreitBurn Energy Partners LP/BreitBurn Finance Corp., senior bond, 7.875%,

04/15/22 * USA USD 13,442,000 0.5113,000,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, first lien, 5.75%, 10/15/20 USA USD 13,422,500 0.5112,900,000 Florida East Coast Holdings Corp., secured note, first lien, 144A, 6.75%, 05/01/19 USA USD 13,383,750 0.5112,200,000 Netflix Inc., senior note, 5.50%, 02/15/22 USA USD 13,206,500 0.5115,400,000 Acosta Inc., senior note, 144A, 7.75%, 10/01/22 USA USD 13,013,000 0.5013,000,000 Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%,

03/01/25 USA USD 12,928,500 0.4912,500,000 Sprint Corp., senior bond, 7.125%, 06/15/24 USA USD 12,906,250 0.4914,000,000 Radio One Inc., senior sub. note, 144A, 9.25%, 02/15/20 USA USD 12,775,000 0.4912,000,000 Sprint Corp., senior note, 7.625%, 02/15/25 USA USD 12,645,000 0.4812,400,000 Royal Bank of Scotland Group PLC, sub. note, 5.125%, 05/28/24 GBR USD 12,341,782 0.4711,800,000 The Goodyear Tire & Rubber Co., senior note, 5.125%, 11/15/23 USA USD 12,213,000 0.4711,700,000 Sealed Air Corp., senior bond, 144A, 5.50%, 09/15/25 USA USD 12,109,500 0.4612,000,000 Rain CII Carbon LLC/CII Carbon Corp., second lien, 144A, 8.25%, 01/15/21 USA USD 11,940,000 0.4611,500,000 Virgin Media Secured Finance PLC, senior secured bond, first lien, 144A, 5.50%,

01/15/25 GBR USD 11,715,625 0.4510,000,000 FMG Resources (August 2006) Pty. Ltd., senior secured note, 144A, 9.75%, 03/01/22 AUS USD 11,650,700 0.4515,000,000 Murray Energy Corp., secured note, second lien, 144A, 11.25%, 04/15/21 USA USD 11,625,000 0.4410,800,000 Jaguar Holding Co. II/Pharmaceutical Product Development LLC, senior note, 144A,

6.375%, 08/01/23 USA USD 11,583,000 0.4411,300,000 KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, senior note, 144A,

5.25%, 06/01/26 USA USD 11,497,750 0.4411,000,000 Owens-Brockway Glass Container Inc., senior note, 144A, 5.875%, 08/15/23 USA USD 11,488,125 0.4410,700,000 Sabine Pass Liquefaction LLC, first lien, 5.625%, 04/15/23 USA USD 11,422,250 0.4411,000,000 DISH DBS Corp., senior note, 5.875%, 11/15/24 USA USD 11,360,250 0.4310,000,000 Vizient Inc., senior note, 144A, 10.375%, 03/01/24 USA USD 11,350,000 0.4311,600,000 Univision Communications Inc., senior secured note, first lien, 144A, 5.125%,

02/15/25 USA USD 11,136,000 0.4311,000,000 First Data Corp., secured note, first lien, 144A, 5.00%, 01/15/24 USA USD 11,099,770 0.4210,800,000 Crestwood Midstream Partners LP/Crestwood Midstrean Finance Corp., senior note,

6.25%, 04/01/23 USA USD 11,070,000 0.4210,000,000 Qorvo Inc., senior note, 6.75%, 12/01/23 USA USD 11,037,500 0.4213,100,000 Endo Finance LLC/Endo Ltd./Endo Finco Inc., senior bond, 144A, 6.00%, 02/01/25 USA USD 10,971,250 0.4210,800,000 Plantronics Inc., senior note, 144A, 5.50%, 05/31/23 USA USD 10,935,000 0.4210,600,000 Navient Corp., senior note, 5.00%, 10/26/20 USA USD 10,838,500 0.4110,000,000 International Game Technology PLC, senior secured bond, 144A, 6.50%, 02/15/25 USA USD 10,775,000 0.4110,500,000 KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, senior note, 144A,

5.00%, 06/01/24 USA USD 10,749,375 0.4110,000,000 Weatherford International Ltd., senior note, 144A, 9.875%, 02/15/24 USA USD 10,681,200 0.4110,000,000 HCA Inc., senior bond, 5.875%, 05/01/23 USA USD 10,650,000 0.4110,000,000 Steel Dynamics Inc., senior bond, 5.50%, 10/01/24 USA USD 10,625,000 0.4110,000,000 United Rentals North America Inc., senior bond, 5.75%, 11/15/24 USA USD 10,550,000 0.40

9,700,000 Netflix Inc., senior bond, 5.875%, 02/15/25 USA USD 10,488,125 0.4010,000,000 Steel Dynamics Inc., senior note, 5.125%, 10/01/21 USA USD 10,479,400 0.4010,000,000 CIT Group Inc., senior note, 5.00%, 08/15/22 USA USD 10,450,000 0.4010,000,000 Gannett Co. Inc., senior note, 5.125%, 07/15/20 USA USD 10,387,500 0.4010,000,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 5.25%, 09/30/22 USA USD 10,375,000 0.4010,000,000 Energy Transfer Equity LP, senior secured bond, first lien, 5.875%, 01/15/24 USA USD 10,375,000 0.4012,000,000 Valeant Pharmaceuticals International, senior note, 144A, 6.375%, 10/15/20 CAN USD 10,368,720 0.4010,000,000 CommScope Inc., senior note, 144A, 5.00%, 06/15/21 USA USD 10,337,500 0.4010,000,000 WPX Energy Inc., senior note, 6.00%, 01/15/22 USA USD 10,300,000 0.39






Number ofshares or


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% ofnet

assets

Corporate Bonds (continued)10,000,000 Sanchez Energy Corp., senior note, 7.75%, 06/15/21 USA USD 10,225,000 0.3915,000,000 Intelsat Jackson Holdings SA, senior bond, 5.50%, 08/01/23 LUX USD 10,200,000 0.39

9,400,000 Sprint Corp., senior bond, 7.875%, 09/15/23 USA USD 10,058,000 0.3810,000,000 First Quantum Minerals Ltd., senior note, 144A, 6.75%, 02/15/20 CAN USD 10,025,000 0.3810,000,000 Calpine Corp., senior note, 5.375%, 01/15/23 USA USD 9,825,000 0.38

9,200,000 Lamb Weston Holdings Inc., senior note, 144A, 4.625%, 11/01/24 USA USD 9,246,000 0.358,600,000 First Data Corp., senior note, 144A, 7.00%, 12/01/23 USA USD 9,180,500 0.359,200,000 Lamb Weston Holdings Inc., senior note, 144A, 4.875%, 11/01/26 USA USD 9,125,250 0.359,500,000 Post Holdings Inc., senior bond, 144A, 5.00%, 08/15/26 USA USD 9,120,000 0.358,730,000 Virgin Media Secured Finance PLC, senior secured note, first lien, 144A, 5.375%,

04/15/21 GBR USD 9,064,999 0.358,900,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, first lien, 144A, 5.125%, 07/15/23 USA USD 9,055,750 0.357,700,000 Microsemi Corp., senior note, 144A, 9.125%, 04/15/23 USA USD 9,009,000 0.349,200,000 CSI Compressco LP/CSI Compressco Finance Inc., senior note, 7.25%, 08/15/22 USA USD 8,740,000 0.338,500,000 Owens-Brockway Glass Container Inc., senior note, 144A, 5.00%, 01/15/22 USA USD 8,723,125 0.338,400,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, 5.75%, 02/15/26 USA USD 8,715,000 0.338,700,000 WMG Acquisition Corp., secured note, 144A, 4.875%, 11/01/24 USA USD 8,700,000 0.33

10,000,000 Digicel Group Ltd., senior note, 144A, 8.25%, 09/30/20 BMU USD 8,585,000 0.338,700,000 NRG Yield Operating LLC, senior bond, 144A, 5.00%, 09/15/26 USA USD 8,352,000 0.32

10,000,000 CHS/Community Health Systems Inc., senior note, 8.00%, 11/15/19 USA USD 8,350,000 0.328,000,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, 5.375%, 05/01/25 USA USD 8,260,000 0.327,400,000 ArcelorMittal, senior note, 6.125%, 06/01/25 FRA USD 8,140,000 0.318,000,000 Weatherford International Ltd., senior note, 7.75%, 06/15/21 USA USD 8,110,000 0.318,000,000 Clear Channel Worldwide Holdings Inc., senior sub. note, 7.625%, 03/15/20 USA USD 8,024,960 0.318,000,000 JPMorgan Chase & Co., junior sub. bond, V, 5.00% to 07/30/19, FRN thereafter,

Perpetual USA USD 7,990,000 0.317,800,000 PetSmart Inc., senior note, 144A, 7.125%, 03/15/23 USA USD 7,975,500 0.317,800,000 Taylor Morrison Communities Inc./Monarch Communities Inc., senior note, 144A,

5.875%, 04/15/23 USA USD 7,956,000 0.3016,000,000 Memorial Production Partners LP/Memorial Production Finance Corp., senior note,

7.625%, 05/01/21 * USA USD 7,920,000 0.307,500,000 Univar USA Inc., senior note, 144A, 6.75%, 07/15/23 USA USD 7,781,250 0.307,600,000 Nextstar Escrow Corp., senior note, 144A, 5.625%, 08/01/24 USA USD 7,562,000 0.297,500,000 QEP Resources Inc., senior bond, 5.25%, 05/01/23 USA USD 7,556,250 0.29

10,000,000 iHeartCommunications Inc., senior secured note, first lien, 9.00%, 09/15/22 USA USD 7,387,500 0.288,300,000 Endo Finance LLC/Endo Ltd./Endo Finco Inc., senior note, 144A, 6.00%, 07/15/23 USA USD 7,324,750 0.287,000,000 TransDigm Inc., senior sub. note, 6.00%, 07/15/22 USA USD 7,315,000 0.286,900,000 TransDigm Inc., senior sub. bond, 6.50%, 07/15/24 USA USD 7,253,625 0.287,300,000 ARD Finance SA, senior secured note, 144A, PIK, 7.125%, 09/15/23 ‡ LUX USD 7,245,250 0.288,200,000 Tenet Healthcare Corp., senior note, 6.75%, 06/15/23 USA USD 7,236,500 0.287,100,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior secured note,

144A, FRN, 3.963%, 12/15/19 † LUX USD 7,224,250 0.286,900,000 Florida East Coast Holdings Corp., senior note, 144A, 9.75%, 05/01/20 USA USD 7,124,250 0.277,100,000 The Goodyear Tire & Rubber Co., senior bond, 5.00%, 05/31/26 USA USD 7,085,374 0.276,700,000 Envision Healthcare Corp., senior note, 144A, 6.25%, 12/01/24 USA USD 7,085,250 0.277,000,000 QEP Resources Inc., senior bond, 5.375%, 10/01/22 USA USD 7,052,500 0.277,000,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 3.95%,

02/01/22 NLD USD 7,048,195 0.2715,100,000 CGG SA, senior note, 6.875%, 01/15/22 FRA USD 7,021,500 0.27

6,800,000 CenturyLink Inc., senior bond, 6.75%, 12/01/23 USA USD 6,978,500 0.276,800,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, senior secured note, first lien, 144A, FRN, 4.38%, 07/15/21 † USA USD 6,970,000 0.276,500,000 Grinding Media Inc./ MC Grinding Media Canada Inc., senior secured note, 144A,

7.375%, 12/15/23 USA USD 6,845,150 0.266,500,000 T-Mobile USA Inc., senior note, 6.731%, 04/28/22 USA USD 6,808,750 0.266,700,000 Sirius XM Radio Inc., senior bond, 144A, 5.375%, 04/15/25 USA USD 6,683,250 0.266,300,000 HudBay Minerals Inc., senior note, 144A, 7.625%, 01/15/25 CAN USD 6,563,844 0.256,300,000 Dole Food Co. Inc., senior secured note, 144A, 7.25%, 05/01/19 USA USD 6,441,750 0.256,200,000 Clear Channel Worldwide Holdings Inc., senior note, 6.50%, 11/15/22 USA USD 6,231,000 0.248,000,000 Digicel Group Ltd., senior note, 144A, 7.125%, 04/01/22 BMU USD 6,212,720 0.245,800,000 1011778 BC ULC/New Red Finance Inc., senior secured note, first lien, 144A,

4.625%, 01/15/22 CAN USD 5,930,500 0.235,600,000 WMG Acquisition Corp., secured note, first lien, 144A, 5.00%, 08/01/23 USA USD 5,642,000 0.225,200,000 T-Mobile USA Inc., senior bond, 6.50%, 01/15/24 USA USD 5,590,000 0.215,400,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

6.00%, 06/30/21 LUX USD 5,514,750 0.215,700,000 Weatherford International Ltd., senior note, 5.125%, 09/15/20 USA USD 5,386,500 0.215,200,000 United Rentals North America Inc., senior bond, 5.875%, 09/15/26 USA USD 5,375,500 0.214,800,000 Qorvo Inc., senior bond, 7.00%, 12/01/25 USA USD 5,340,000 0.205,000,000 KB Home, senior note, 7.00%, 12/15/21 USA USD 5,312,500 0.20

17,000,000 Concordia International Corp., senior note, 144A, 7.00%, 04/15/23 CAN USD 5,270,000 0.205,000,000 Calpine Corp., senior secured bond, first lien, 144A, 5.875%, 01/15/24 USA USD 5,237,500 0.205,800,000 Chaparral Energy Inc., senior bond, 8.25%, 09/01/21 * USA USD 5,234,500 0.205,000,000 CIT Group Inc., senior note, 5.25%, 03/15/18 USA USD 5,193,750 0.205,000,000 CommScope Inc., senior bond, 144A, 5.50%, 06/15/24 USA USD 5,193,750 0.205,000,000 Navient Corp., senior note, 4.875%, 06/17/19 USA USD 5,187,500 0.204,900,000 MPH Acquisition Holdings LLC, senior note, 144A, 7.125%, 06/01/24 USA USD 5,169,990 0.205,200,000 The Chemours Co., senior bond, 7.00%, 05/15/25 USA USD 5,148,000 0.205,000,000 CenturyLink Inc., senior note, 5.80%, 03/15/22 USA USD 5,129,400 0.204,600,000 Platform Specialty Products Corp., senior note, 144A, 10.375%, 05/01/21 USA USD 5,106,000 0.205,100,000 MPT Operating Partnership LP/MPT Finance Corp., senior bond, 5.25%, 08/01/26 USA USD 5,010,750 0.19






Number ofshares or


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% ofnet

assets

Corporate Bonds (continued)5,000,000 Virgin Media Secured Finance PLC, senior secured bond, 144A, 5.25%, 01/15/26 GBR USD 4,931,250 0.195,600,000 Weatherford International Ltd., senior note, 4.50%, 04/15/22 USA USD 4,886,000 0.194,600,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured note, first lien,

144A, 5.45%, 06/15/23 USA USD 4,880,899 0.195,000,000 Hilton Domestic Operating Co. Inc., first lien, senior note, 144A, 4.25%, 09/01/24 USA USD 4,875,000 0.194,800,000 MSCI Inc., senior note, 144A, 4.75%, 08/01/26 USA USD 4,770,000 0.184,600,000 Novelis Corp., senior bond, 144A, 5.875%, 09/30/26 USA USD 4,657,500 0.184,300,000 CommScope Technologies Finance LLC, senior bond, 144A, 6.00%, 06/15/25 USA USD 4,579,500 0.184,300,000 XPO Logistics Inc., senior note, 144A, 6.125%, 09/01/23 USA USD 4,509,625 0.174,900,000 Chaparral Energy Inc., senior bond, 7.625%, 11/15/22 * USA USD 4,410,000 0.174,000,000 Cloud Crane LLC, secured note, second lien, 144A, 10.125%, 08/01/24 USA USD 4,290,000 0.164,000,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, senior note, 144A, 7.00%, 07/15/24 USA USD 4,257,500 0.164,100,000 TransDigm Inc., senior sub. bond, 144A, 6.375%, 06/15/26 USA USD 4,231,200 0.165,600,000 Valeant Pharmaceuticals International Inc., senior bond, 144A, 6.125%, 04/15/25 USA USD 4,228,000 0.164,000,000 Post Holdings Inc., senior note, 144A, 6.00%, 12/15/22 USA USD 4,195,000 0.164,000,000 Virgin Media Secured Finance PLC, senior secured bond, first lien, 144A, 5.50%,

08/15/26 GBR USD 4,000,000 0.158,000,000 Memorial Production Partners LP/Memorial Production Finance Corp., senior note,

6.875%, 08/01/22 * USA USD 3,880,000 0.153,500,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured bond, first lien,

144A, 6.02%, 06/15/26 USA USD 3,793,349 0.153,600,000 United Rentals North America Inc., senior bond, 5.50%, 05/15/27 USA USD 3,577,500 0.143,600,000 Tenet Healthcare Corp., senior note, 5.50%, 03/01/19 USA USD 3,555,000 0.143,100,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior note, 144A, 7.125%,

06/15/24 USA USD 3,442,073 0.133,300,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

6.75%, 01/31/21 LUX USD 3,407,250 0.133,600,000 CHS/Community Health Systems Inc., senior secured note, 5.125%, 08/01/21 USA USD 3,348,000 0.134,338,339 W&T Offshore Inc., second lien, 144A, PIK, 10.75%, 05/15/20 ‡ USA USD 3,340,521 0.133,200,000 Horizon Pharma Inc./Horizon Pharma USA Inc., senior note, 144A, 8.75%, 11/01/24 USA USD 3,256,000 0.123,000,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior note, 144A, 5.875%,

06/15/21 USA USD 3,191,940 0.123,100,000 Chaparral Energy Inc., senior note, 9.875%, 10/01/20 * USA USD 2,805,500 0.112,600,000 Sabine Pass Liquefaction LLC, senior secured note, first lien, 5.75%, 05/15/24 USA USD 2,801,500 0.112,600,000 Alere Inc., senior sub. note, 6.50%, 06/15/20 USA USD 2,574,000 0.102,300,000 TransDigm Inc., senior sub. bond, 6.50%, 05/15/25 USA USD 2,417,875 0.093,882,900 W&T Offshore Inc., senior secured note, third lien, 144A, PIK, 10.00%, 06/15/21 ‡ USA USD 2,329,740 0.093,300,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 2,310,000 0.092,000,000 Stena International SA, senior secured bond, first lien, 144A, 5.75%, 03/01/24 SWE USD 1,745,900 0.07

941,929 Vistra Energy Corp., Escrow Account USA USD 1,365,797 0.051,205,000 CHS/Community Health Systems Inc., senior secured note, first lien, 5.125%,

08/15/18 USA USD 1,184,033 0.05

2,440,509,925 93.36

TOTAL BONDS 2,440,509,925 93.36

TOTAL TRANSFERABLE SECURITIES DEALT INON ANOTHER REGULATED MARKET 2,461,843,026 94.18


1,103,511 Halcon Resources Corp. ** USA USD 9,247,641 0.35575,750 Goodrich Petroleum Corp. ** USA USD 6,697,726 0.26

15,945,367 0.61

TOTAL SHARES 15,945,367 0.61



Paper & Forest Products8,190 Verso Corp., wts., 07/25/23 USA USD 0 0.00







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55,000,000 Vistra Energy Corp., Escrow Account ** USA USD 638,000 0.0220,000,000 Fontainebleau Las Vegas, senior secured bond, first lien, 144A, 11.00%, 06/15/15 * USA USD 2,000 0.00

1,733,089 Goss Graphic Systems Inc., senior sub. note, 12.25%, 11/19/05 *,** USA USD 173 0.0015,000,000 Midstates Petroleum Co. Inc./Midstates Petroleum Co. LLC, Escrow Account ** USA USD 0 0.0028,000,000 NewPage Corp., Escrow Account ** USA USD 0 0.00

640,173 0.02




* These Bonds are currently in default‡ Income may be received in additional securities and/or cash† Floating Rates are indicated as at December 31, 2016** These securities are submitted to a Fair Valuation






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assets


750,000 General Motors Co. USA USD 26,130,000 1.14300,000 Daimler AG DEU EUR 22,323,474 0.98308,400 Target Corp. USA USD 22,275,732 0.97

1,290,000 Ford Motor Co. USA USD 15,647,700 0.68

86,376,906 3.77

Consumer Staples270,100 PepsiCo Inc. USA USD 28,260,563 1.24180,000 Anheuser-Busch InBev SA/NV, ADR BEL USD 18,979,200 0.83415,000 The Coca-Cola Co. USA USD 17,205,900 0.75150,000 Philip Morris International Inc. USA USD 13,723,500 0.60

78,169,163 3.42

Energy1,000,000 Royal Dutch Shell PLC, A, ADR GBR USD 54,380,000 2.38

295,000 Chevron Corp. USA USD 34,721,500 1.52800,000 BP PLC, ADR GBR USD 29,904,000 1.31500,000 Total SA, B, ADR FRA USD 25,485,000 1.11250,000 Occidental Petroleum Corp. USA USD 17,807,500 0.78195,000 Anadarko Petroleum Corp. USA USD 13,597,350 0.59

65,000 Schlumberger Ltd. USA USD 5,456,750 0.241,000,000 Weatherford International PLC USA USD 4,990,000 0.221,531,800 W&T Offshore Inc. USA USD 4,243,086 0.18

73,753 PetroQuest Energy Inc. USA USD 244,123 0.01

190,829,309 8.34

Financials361,800 JPMorgan Chase & Co. USA USD 31,219,722 1.36574,218 MetLife Inc. USA USD 30,944,608 1.35531,000 Wells Fargo & Co. USA USD 29,263,410 1.28405,000 U.S. Bancorp USA USD 20,804,850 0.91500,000 AXA SA FRA EUR 12,618,508 0.55

9,000 Bank of America Corp., 7.25%, cvt. pfd., L USA USD 10,501,200 0.467,000 Wells Fargo & Co., 7.50%, cvt. pfd., A USA USD 8,330,000 0.37

200,000 Bank of America Corp. USA USD 4,420,000 0.19

148,102,298 6.47

Health Care1,050,000 Pfizer Inc. USA USD 34,104,000 1.49

475,000 AstraZeneca PLC GBR GBP 25,965,090 1.13100,000 Roche Holding AG CHE CHF 22,839,749 1.00304,900 Eli Lilly & Co. USA USD 22,425,395 0.98550,000 Sanofi, ADR FRA USD 22,242,000 0.97

12,500 Allergan PLC, 5.50%, cvt. pfd. USA USD 9,530,750 0.4260,000 Medtronic PLC USA USD 4,273,800 0.19

141,380,784 6.18

Industrials1,200,000 General Electric Co. USA USD 37,920,000 1.66

293,000 United Technologies Corp. USA USD 32,118,660 1.40300,000 Republic Services Inc. USA USD 17,115,000 0.75150,000 Deere & Co. USA USD 15,456,000 0.67

102,609,660 4.48

Information Technology700,000 Microsoft Corp. USA USD 43,498,000 1.90240,183 Apple Inc. USA USD 27,817,995 1.22678,000 Intel Corp. USA USD 24,591,060 1.07215,000 Analog Devices Inc. USA USD 15,613,300 0.68

111,520,355 4.87

Materials675,000 The Dow Chemical Co. USA USD 38,623,500 1.69350,000 BASF SE DEU EUR 32,521,922 1.42500,000 Rio Tinto PLC, ADR GBR USD 19,230,000 0.84350,000 The Mosaic Co. USA USD 10,265,500 0.45

100,640,922 4.40

Real Estate280,409 Outfront Media Inc. USA USD 6,973,772 0.30

36,506 FelCor Lodging Trust Inc., 7.80%, cvt. pfd., A USA USD 909,364 0.04

7,883,136 0.34

Telecommunication Services400,000 Verizon Communications Inc. USA USD 21,352,000 0.93220,000 BCE Inc. CAN CAD 9,507,447 0.42

1,644,400 Telstra Corp. Ltd. AUS AUD 6,051,655 0.26

36,911,102 1.61


— Franklin Income Fund —




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Utilities507,700 PG&E Corp. USA USD 30,852,929 1.35400,000 Dominion Resources Inc. USA USD 30,636,000 1.34255,000 Duke Energy Corp. USA USD 19,793,100 0.86150,000 Sempra Energy USA USD 15,096,000 0.66283,900 Dominion Resources Inc., 6.375%, cvt. pfd., A USA USD 14,212,034 0.62249,100 The Southern Co. USA USD 12,253,229 0.54245,000 Xcel Energy Inc. USA USD 9,971,500 0.44200,000 Public Service Enterprise Group Inc. USA USD 8,776,000 0.38150,000 NextEra Energy Inc., 6.371%, cvt. pfd. USA USD 8,587,500 0.38

50,000 NextEra Energy Inc. USA USD 5,973,000 0.26170,000 PPL Corp. USA USD 5,788,500 0.25100,000 Exelon Corp., 6.50%, cvt. pfd. USA USD 4,841,000 0.21

166,780,792 7.29

TOTAL SHARES 1,171,204,427 51.17


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESConsumer Discretionary

310,000 Royal Bank of Canada into Target Corp., 6.00%, cvt. pfd., 144A USA USD 22,557,770 0.991,790,000 Morgan Stanley into Ford Motors, 8.50%, cvt. pfd., 144A USA USD 22,022,191 0.96

44,579,961 1.95

Energy142,725 Rex Energy Corp. USA USD 67,252 0.00

Financials1,000,000 Citigroup Inc. into Bank of America Corp., 7.50%, cvt. pfd., 144A USA USD 15,800,500 0.69

Health Care20,000 Teva Pharmaceutical Industries Ltd., 7.00%, cvt. pfd. ISR USD 12,900,000 0.56

200,000 JPMorgan Chase & Co. into Merck & Co. Inc., 6.25%, cvt. pfd., 144A USA USD 11,616,980 0.51

24,516,980 1.07

Industrials1,408 CEVA Holdings LLC, cvt. pfd., A-2 USA USD 316,793 0.011,479 CEVA Holdings LLC USA USD 147,929 0.01


479,022 0.02

Information Technology750,000 Wells Fargo Bank National Assn. into Intel Corp., 7.00%, cvt. pfd., 144A USA USD 26,307,375 1.15300,000 Royal Bank of Canada into Texas Instruments Inc., 6.00%, cvt. pfd., 144A USA USD 20,262,570 0.88455,000 Wells Fargo Bank National Assn. into Cisco Systems Inc., 7.25%, cvt. pfd., 144A USA USD 13,432,328 0.59312,000 JPMorgan Chase & Co. into Oracle Corp., 6.00%, cvt. pfd., 144A USA USD 12,174,084 0.53

72,176,357 3.15

TOTAL SHARES 157,620,072 6.88


20,000,000 FMG Resources (August 2006) Pty. Ltd., senior secured note, 144A, 9.75%, 03/01/22 AUS USD 23,301,400 1.0225,775,000 CHS/Community Health Systems Inc., senior note, 8.00%, 11/15/19 USA USD 21,522,125 0.9420,000,000 Dynegy Inc., senior note, 6.75%, 11/01/19 USA USD 20,450,000 0.8920,000,000 Calpine Corp., senior bond, 5.75%, 01/15/25 USA USD 19,400,000 0.8516,000,000 Sprint Communications Inc., senior note, 6.00%, 11/15/22 USA USD 16,160,000 0.7116,000,000 Bill Barrett Corp., senior note, 7.625%, 10/01/19 USA USD 15,840,000 0.6915,000,000 Citigroup Inc., junior sub. bond, 5.90% to 02/15/23, FRN thereafter, Perpetual USA USD 15,206,250 0.6614,100,000 Sprint Corp., senior bond, 7.875%, 09/15/23 USA USD 15,087,000 0.6615,000,000 JPMorgan Chase & Co., junior sub. bond, V, 5.00% to 07/30/19, FRN thereafter,

Perpetual USA USD 14,981,250 0.6515,000,000 Univision Communications Inc., senior secured note, first lien, 144A, 5.125%,

05/15/23 USA USD 14,831,250 0.6515,000,000 Dynegy Inc., senior note, 7.375%, 11/01/22 USA USD 14,400,000 0.6316,000,000 Endo Finance LLC, senior note, 144A, 5.75%, 01/15/22 USA USD 14,320,000 0.6314,100,000 Citigroup Inc., junior sub. bond, M, 6.30% to 05/15/24, FRN thereafter, Perpetual USA USD 13,997,775 0.6112,500,000 CommScope Inc., senior bond, 144A, 5.50%, 06/15/24 USA USD 12,984,375 0.5713,500,000 Tenet Healthcare Corp., senior note, 8.125%, 04/01/22 USA USD 12,804,750 0.5612,500,000 Mallinckrodt International Finance SA/Mallinckrodt CB LLC, senior note, 144A,

5.75%, 08/01/22 USA USD 12,093,750 0.5310,000,000 Western Digital Corp., senior note, 144A, 10.50%, 04/01/24 USA USD 11,850,000 0.5213,200,000 Tenet Healthcare Corp., senior note, 6.75%, 06/15/23 USA USD 11,649,000 0.5112,000,000 Bank of America Corp., junior sub. bond, U, 5.20% to 06/01/23, FRN thereafter,

Perpetual USA USD 11,520,000 0.5011,000,000 Weatherford International Ltd., senior note, 7.75%, 06/15/21 USA USD 11,151,250 0.4910,000,000 Western Digital Corp., senior secured note, 144A, 7.375%, 04/01/23 USA USD 11,025,000 0.4810,000,000 Weatherford International Ltd., cvt., senior note, 5.875%, 07/01/21 USA USD 10,875,000 0.4810,000,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 10,842,500 0.4710,000,000 BWAY Holding Co., senior note, 144A, 9.125%, 08/15/21 USA USD 10,600,000 0.4610,000,000 T-Mobile USA Inc., senior note, 6.00%, 03/01/23 USA USD 10,587,500 0.4610,000,000 DISH DBS Corp., senior note, 5.875%, 07/15/22 USA USD 10,550,000 0.4610,000,000 Sprint Corp., senior note, 7.625%, 02/15/25 USA USD 10,537,500 0.4610,000,000 JBS USA LLC/Finance Inc., senior bond, 144A, 5.875%, 07/15/24 USA USD 10,375,000 0.45






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Corporate Bonds (continued)10,000,000 Crown Americas LLC/Crown Americas Capital Corp. IV, senior bond, 4.50%, 01/15/23 USA USD 10,250,000 0.4510,000,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, 5.50%, 05/01/26 USA USD 10,225,000 0.4510,000,000 Citigroup Inc., junior sub. bond, 5.95% to 01/30/23, FRN thereafter, Perpetual USA USD 10,150,000 0.4410,000,000 JPMorgan Chase & Co., junior sub. bond, X, 6.10% to 10/01/24, FRN thereafter,

Perpetual USA USD 10,131,250 0.4410,000,000 JPMorgan Chase & Co., junior sub. bond, R, 6.00% to 08/01/23, FRN thereafter,

Perpetual USA USD 10,062,500 0.4410,000,000 DISH DBS Corp., senior bond, 5.00%, 03/15/23 USA USD 9,975,000 0.44

9,700,000 Sanchez Energy Corp., senior note, 7.75%, 06/15/21 USA USD 9,918,250 0.4310,000,000 Bill Barrett Corp., senior note, 7.00%, 10/15/22 USA USD 9,600,000 0.42

8,800,000 Sabine Pass Liquefaction LLC, first lien, 5.625%, 04/15/23 USA USD 9,394,000 0.419,000,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 5.125%, 02/15/23 USA USD 9,270,000 0.409,000,000 Fiat Chrysler Automobiles NV, senior note, 5.25%, 04/15/23 GBR USD 9,208,035 0.408,900,000 Cemex Finance LLC, senior secured note, first lien, 144A, 6.00%, 04/01/24 MEX USD 9,201,487 0.40

10,000,000 InterGen NV, secured bond, 144A, 7.00%, 06/30/23 NLD USD 8,950,000 0.398,400,000 United Rentals North America Inc., senior bond, 5.75%, 11/15/24 USA USD 8,862,000 0.398,000,000 KB Home, senior note, 7.00%, 12/15/21 USA USD 8,500,000 0.378,200,000 Sprint Corp., senior bond, 7.125%, 06/15/24 USA USD 8,466,500 0.379,000,000 BMC Software Finance Inc., senior note, 144A, 8.125%, 07/15/21 USA USD 8,454,375 0.378,000,000 XPO Logistics Inc., senior note, 144A, 6.50%, 06/15/22 USA USD 8,430,000 0.378,000,000 Wind Acquisition Finance SA, senior note, second lien, 144A, 7.375%, 04/23/21 ITA USD 8,324,800 0.368,766,000 Citigroup Inc., junior sub. bond, 5.35% to 05/15/23, FRN thereafter, Perpetual USA USD 8,272,913 0.367,500,000 Weatherford International Ltd., senior note, 144A, 9.875%, 02/15/24 USA USD 8,010,900 0.357,900,000 Wells Fargo & Co., junior sub. bond, S, 5.90% to 06/15/24, FRN thereafter, Perpetual USA USD 7,949,375 0.359,100,000 24 Hour Holdings III LLC, senior note, 144A, 8.00%, 06/01/22 USA USD 7,780,500 0.347,000,000 First Data Corp., senior note, 144A, 7.00%, 12/01/23 USA USD 7,472,500 0.337,000,000 Regal Entertainment Group, senior note, 5.75%, 03/15/22 USA USD 7,350,000 0.328,100,000 Digicel Group Ltd., senior note, 144A, 6.75%, 03/01/23 BMU USD 7,317,662 0.32

12,000,000 Stone Energy Corp., senior bond, 7.50%, 11/15/22 * USA USD 7,260,000 0.3210,000,000 Intelsat Jackson Holdings SA, senior bond, 5.50%, 08/01/23 LUX USD 6,800,000 0.30

9,100,000 iHeartCommunications Inc., senior secured bond, first lien, 9.00%, 03/01/21 USA USD 6,768,125 0.306,200,000 HCA Inc., senior bond, 5.875%, 05/01/23 USA USD 6,603,000 0.296,300,000 Iron Mountain Inc., senior sub. bond, 5.75%, 08/15/24 USA USD 6,504,750 0.288,300,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.875%, 05/15/23 USA USD 6,308,000 0.286,000,000 CommScope Inc., senior note, 144A, 5.00%, 06/15/21 USA USD 6,202,500 0.275,450,000 HCA Inc., senior note, 7.50%, 02/15/22 USA USD 6,199,375 0.275,800,000 KB Home, senior bond, 7.50%, 09/15/22 USA USD 6,148,000 0.275,000,000 Kinder Morgan Inc., senior bond, MTN, 7.75%, 01/15/32 USA USD 6,134,580 0.275,500,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 5.75%, 01/15/24 USA USD 5,761,250 0.255,600,000 Weatherford International Ltd., senior note, 8.25%, 06/15/23 USA USD 5,712,000 0.256,500,000 Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note, 6.50%,

04/15/21 USA USD 5,541,250 0.245,420,000 iStar Inc., senior note, 5.00%, 07/01/19 USA USD 5,460,650 0.245,000,000 Sabine Pass Liquefaction LLC, senior secured bond, 144A, 5.875%, 06/30/26 USA USD 5,406,250 0.245,000,000 Cemex SAB de CV, secured note, 144A, 7.25%, 01/15/21 MEX USD 5,362,775 0.235,000,000 Sprint Communications Inc., senior note, 7.00%, 08/15/20 USA USD 5,313,050 0.235,000,000 TransDigm Inc., senior sub. bond, 6.50%, 07/15/24 USA USD 5,256,250 0.237,500,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 5,250,000 0.234,400,000 CSC Holdings LLC, senior bond, 144A, 10.875%, 10/15/25 USA USD 5,244,800 0.235,000,000 OneMain Financial Holdings Inc., senior note, 144A, 7.25%, 12/15/21 USA USD 5,237,500 0.235,000,000 OneMain Financial Holdings Inc., senior note, 144A, 6.75%, 12/15/19 USA USD 5,231,250 0.235,000,000 JBS USA LLC/Finance Inc., senior note, 144A, 7.25%, 06/01/21 USA USD 5,212,500 0.235,000,000 Belden Inc., senior sub. note, 144A, 5.50%, 09/01/22 USA USD 5,175,000 0.236,051,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.375%, 03/15/20 USA USD 5,143,350 0.225,000,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

6.00%, 06/30/21 LUX USD 5,106,250 0.224,600,000 Kinder Morgan Inc., senior secured bond, first lien, 144A, 5.625%, 11/15/23 USA USD 5,050,901 0.225,000,000 Bank of America Corp., junior sub. bond, AA, 6.10% to 03/17/25, FRN thereafter,

Perpetual USA USD 5,033,750 0.225,000,000 JPMorgan Chase & Co., junior sub. bond, 6.125% to 04/30/24, FRN thereafter,

Perpetual USA USD 5,031,250 0.225,000,000 The AES Corp., senior bond, 4.875%, 05/15/23 USA USD 4,963,500 0.225,000,000 Shea Homes LP/Shea Homes Funding Corp., senior note, 144A, 5.875%, 04/01/23 USA USD 4,900,000 0.215,800,000 iHeartCommunications Inc., senior secured note, first lien, 9.00%, 12/15/19 USA USD 4,763,250 0.216,300,000 Valeant Pharmaceuticals International Inc., senior bond, 144A, 6.125%, 04/15/25 USA USD 4,756,500 0.215,000,000 Bombardier Inc., senior note, 144A, 6.00%, 10/15/22 CAN USD 4,725,000 0.214,700,000 The Williams Cos. Inc., senior bond, 3.70%, 01/15/23 USA USD 4,559,000 0.204,100,000 NCR Corp., senior note, 5.00%, 07/15/22 USA USD 4,202,500 0.184,000,000 TransDigm Inc., senior sub. note, 6.00%, 07/15/22 USA USD 4,180,000 0.184,100,000 Platform Specialty Products Corp., senior note, 144A, 6.50%, 02/01/22 USA USD 4,151,250 0.184,000,000 The Goldman Sachs Group Inc., junior sub. note, 5.70% to 05/10/19, FRN thereafter,

Perpetual USA USD 4,104,200 0.183,600,000 Morgan Stanley, junior sub. bond, 5.55% to 07/15/20, FRN thereafter, Perpetual USA USD 3,645,000 0.163,100,000 Infor Software Parent LLC/Inc., senior note, 144A, PIK, 7.125%, 05/01/21 ‡ USA USD 3,193,000 0.144,132,237 W&T Offshore Inc., second lien, 144A, PIK, 10.75%, 05/15/20 ‡ USA USD 3,181,822 0.143,000,000 Frontier Communications Corp., senior note, 9.25%, 07/01/21 USA USD 3,161,250 0.143,600,000 Valeant Pharmaceuticals International, senior note, 144A, 6.375%, 10/15/20 CAN USD 3,110,616 0.142,500,000 Sprint Communications Inc., 11.50%, 11/15/21 USA USD 3,081,250 0.133,000,000 Cott Beverages Inc., senior note, 5.375%, 07/01/22 USA USD 3,063,750 0.132,950,000 McDermott International Inc., second lien, 144A, 8.00%, 05/01/21 USA USD 2,994,250 0.133,000,000 Navient Corp., senior note, 6.125%, 03/25/24 USA USD 2,928,750 0.13






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Corporate Bonds (continued)3,000,000 Shea Homes LP/Shea Homes Funding Corp., senior bond, 144A, 6.125%, 04/01/25 USA USD 2,917,500 0.133,100,000 Frontier Communications Corp., senior note, 7.125%, 01/15/23 USA USD 2,821,000 0.122,500,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

7.25%, 05/15/24 LUX USD 2,643,750 0.122,380,000 Denbury Resources Inc., senior secured note, 144A, 9.00%, 05/15/21 USA USD 2,588,250 0.112,500,000 Chesapeake Energy Corp., senior note, FRN, 4.13%, 04/15/19 † USA USD 2,525,000 0.112,400,000 PetSmart Inc., senior note, 144A, 7.125%, 03/15/23 USA USD 2,454,000 0.112,300,000 Cortes NP Acquisition Corp., senior note, 144A, 9.25%, 10/15/24 USA USD 2,449,500 0.112,434,000 Hertz Corp., senior note, 6.75%, 04/15/19 USA USD 2,440,085 0.113,375,000 PetroQuest Energy Inc., secured note, second lien, 144A, PIK, 10.00%, 02/15/21 ‡ USA USD 2,396,250 0.104,515,000 Rex Energy Corp., second lien, 1.00%, 10/01/20 USA USD 2,302,650 0.103,698,000 W&T Offshore Inc., senior secured note, third lien, 144A, PIK, 10.00%, 06/15/21 ‡ USA USD 2,218,800 0.102,100,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, first lien, 144A, 5.125%, 07/15/23 USA USD 2,136,750 0.092,000,000 Zayo Group LLC/Zayo Capital Inc., senior note, 6.00%, 04/01/23 USA USD 2,090,000 0.091,900,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

6.25%, 01/31/19 LUX USD 1,938,000 0.082,500,000 CHS/Community Health Systems Inc., senior note, 7.125%, 07/15/20 USA USD 1,913,250 0.081,800,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured note, first lien,

144A, 5.45%, 06/15/23 USA USD 1,909,917 0.081,900,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

4.625%, 05/15/23 LUX USD 1,892,875 0.082,000,000 Mallinckrodt International Finance SA/Mallinckrodt CB LLC, senior note, 144A,

5.50%, 04/15/25 USA USD 1,800,000 0.081,714,000 First Quantum Minerals Ltd., senior note, 144A, 6.75%, 02/15/20 CAN USD 1,718,285 0.081,600,000 DISH DBS Corp., senior note, 5.875%, 11/15/24 USA USD 1,652,400 0.071,500,000 Rockies Express Pipeline LLC, senior bond, 144A, 5.625%, 04/15/20 USA USD 1,586,250 0.071,400,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured bond, first lien,

144A, 6.02%, 06/15/26 USA USD 1,517,340 0.072,700,000 Energy XXI Gulf Coast Inc., senior secured note, second lien, 144A, 11.00%,

03/15/20 * USA USD 1,431,000 0.061,000,000 Zayo Group LLC/Zayo Capital Inc., senior note, 6.375%, 05/15/25 USA USD 1,048,750 0.051,000,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured note, first lien,

144A, 4.42%, 06/15/21 USA USD 1,034,893 0.05900,000 Prime Security Services Borrower LLC/Prime Finance Inc., secured note, second lien,

144A, 9.25%, 05/15/23 USA USD 982,125 0.042,500,000 Concordia International Corp., senior note, 144A, 9.50%, 10/21/22 CAN USD 900,000 0.04

900,000 Stena International SA, senior secured bond, first lien, 144A, 5.75%, 03/01/24 SWE USD 785,655 0.032,500,000 Cobalt International Energy Inc., cvt., senior bond, 3.125%, 05/15/24 USA USD 725,000 0.03

700,000 The ADT Corp., senior note, 3.50%, 07/15/22 USA USD 670,250 0.03500,000 Weatherford International Ltd., senior note, 4.50%, 04/15/22 USA USD 436,250 0.02

1,000,000 Concordia International Corp., senior note, 144A, 7.00%, 04/15/23 CAN USD 310,000 0.01

915,828,741 40.01

Securities Maturing Within One Year4,499,000 Stone Energy Corp., cvt., senior note, 1.75%, 03/01/17 * USA USD 2,721,895 0.12

TOTAL BONDS 918,550,636 40.13


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETBONDSCorporate Bonds

100,000 Motors Liquidation Co., Escrow Account, 6.25%, cvt. pfd., C ** USA USD 0 0.00

TOTAL BONDS 0 0.00

TOTAL TRANSFERABLE SECURITIES NOT ADMITTED TOAN OFFICIAL STOCK EXCHANGE LISTING NOR DEALT INON ANOTHER REGULATED MARKET 0 0.00


* These Bonds are currently in default‡ Income may be received in additional securities and/or cash† Floating Rates are indicated as at December 31, 2016** These securities are submitted to a Fair Valuation






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% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAuto Components

2,885,000 Bharat Forge Ltd. IND INR 38,487,441 1.19

Automobiles16,047,734 Tata Motors Ltd. IND INR 111,464,655 3.4421,145,424 Tata Motors Ltd., A IND INR 93,070,977 2.88

2,800,000 Mahindra & Mahindra Ltd. IND INR 48,814,391 1.51

253,350,023 7.83

Banks12,881,000 HDFC Bank Ltd. IND INR 250,883,091 7.7615,407,200 Kotak Mahindra Bank Ltd. IND INR 163,176,150 5.05

9,787,242 IndusInd Bank Ltd. IND INR 159,566,731 4.9343,000,000 State Bank of India IND INR 158,320,524 4.89

8,998,362 Yes Bank Ltd. IND INR 153,134,054 4.738,293,095 Axis Bank Ltd. IND INR 54,911,380 1.70

939,991,930 29.06

Capital Markets1,749,165 Credit Analysis and Research Ltd. IND INR 33,599,995 1.044,248,858 Motilal Oswal Financial Services Ltd. IND INR 32,553,639 1.01

292,329 ICRA Ltd. IND INR 17,142,582 0.53

83,296,216 2.58

Chemicals2,700,000 Asian Paints Ltd. IND INR 35,403,590 1.09

Construction & Engineering5,390,000 Larsen & Toubro Ltd. IND INR 107,007,537 3.31

14,843,872 Voltas Ltd. IND INR 71,702,351 2.22

178,709,888 5.53

Construction Materials2,364,553 UltraTech Cement Ltd. IND INR 113,094,269 3.49

250,213 Shree Cement Ltd. IND INR 54,249,321 1.68

167,343,590 5.17

Consumer Finance17,124,562 Mahindra & Mahindra Financial Services Ltd. IND INR 68,103,061 2.11

Electrical Equipment4,784,006 Amara Raja Batteries Ltd. IND INR 61,269,193 1.90

88,000 Havell’s India Ltd. IND INR 443,208 0.01

61,712,401 1.91

Food Products595,584 Nestle India Ltd. IND INR 52,835,149 1.63137,200 Britannia Industries Ltd. IND INR 5,827,430 0.18

58,662,579 1.81

Health Care Providers & Services1,650,000 Narayana Hrudayalaya Ltd., Reg S IND INR 8,325,933 0.26

Hotels, Restaurants & Leisure26,281,673 Indian Hotels Co. Ltd. IND INR 38,114,576 1.18

Household Durables15,446,700 Crompton Greaves Consumer Electricals Ltd. IND INR 33,164,424 1.03

Household Products10,697,584 Hindustan Unilever Ltd. IND INR 130,086,191 4.02

Internet & Direct Marketing Retail546,000 MakeMyTrip Ltd. IND USD 12,121,200 0.37

IT Services2,015,212 Cognizant Technology Solutions Corp., A USA USD 112,912,328 3.497,530,000 Infosys Ltd. IND INR 111,983,936 3.466,240,582 HCL Technologies Ltd. IND INR 76,034,495 2.35

300,930,759 9.30

Machinery8,284,545 Cummins India Ltd. IND INR 99,816,292 3.091,050,000 SKF India Ltd. IND INR 19,505,979 0.60

119,322,271 3.69

Media11,539,735 Jagran Prakashan Ltd. IND INR 30,464,898 0.94

Multiline Retail10,688,870 Trent Ltd. IND INR 31,521,797 0.97

Oil, Gas & Consumable Fuels452,890 Bharat Petroleum Corp. Ltd. IND INR 4,235,354 0.13


— Franklin India Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Personal Products648,915 Godrej Consumer Products Ltd. IND INR 14,418,890 0.45

Pharmaceuticals13,327,872 Sun Pharmaceutical Industries Ltd. IND INR 123,561,400 3.82

1,781,000 Dr. Reddy’s Laboratories Ltd. IND INR 80,209,087 2.4813,284,584 Cadila Healthcare Ltd. IND INR 69,722,291 2.16

1,640,000 Lupin Ltd. IND INR 35,885,721 1.11

309,378,499 9.57

Real Estate Management & Development6,926,400 Oberoi Realty Ltd. IND INR 30,104,124 0.932,298,600 Godrej Properties Ltd. IND INR 10,255,907 0.32

40,360,031 1.25

Textiles, Apparel & Luxury Goods12,500,000 Titan Co. Ltd. IND INR 60,113,708 1.8619,365,648 Aditya Birla Fashion and Retail Ltd. IND INR 39,341,409 1.22

99,455,117 3.08

Transportation Infrastructure13,765,000 Gujarat Pipavav Port Ltd. IND INR 26,636,885 0.82

Wireless Telecommunication Services8,038,259 Bharti Airtel Ltd. IND INR 36,154,958 1.128,629,824 Idea Cellular Ltd. IND INR 9,416,609 0.29

45,571,567 1.41

TOTAL SHARES 3,129,169,111 96.75




— Franklin India Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


198,100 Japan Airlines Co. Ltd. JPN JPY 676,511,500 2.01

Auto Components219,500 Bridgestone Corp. JPN JPY 924,973,000 2.75139,300 Denso Corp. JPN JPY 705,275,900 2.09

92,200 Koito Manufacturing Co. Ltd. JPN JPY 570,718,000 1.69335,800 Sumitomo Electric Industries Ltd. JPN JPY 566,326,700 1.68134,100 Toyota Boshoku Corp. JPN JPY 360,326,700 1.07

3,127,620,300 9.28

Automobiles300,300 Honda Motor Co. Ltd. JPN JPY 1,025,524,500 3.04142,400 Toyota Motor Corp. JPN JPY 979,427,200 2.91112,900 Fuji Heavy Industries Ltd. JPN JPY 538,758,800 1.60120,800 Suzuki Motor Corp. JPN JPY 496,971,200 1.47

3,040,681,700 9.02

Banks1,689,100 Mitsubishi UFJ Financial Group Inc. JPN JPY 1,216,489,820 3.613,517,000 Mizuho Financial Group Inc. JPN JPY 737,866,600 2.19

1,954,356,420 5.80

Building Products63,100 Daikin Industries Ltd. JPN JPY 677,378,500 2.01

Chemicals89,300 Shin-Etsu Chemical Co. Ltd. JPN JPY 809,683,100 2.40

350,300 Taiyo Nippon Sanso Corp. JPN JPY 474,306,200 1.41

1,283,989,300 3.81

Construction & Engineering866,000 Penta-Ocean Construction Co. Ltd. JPN JPY 489,290,000 1.45169,300 COMSYS Holdings Corp. JPN JPY 362,471,300 1.07

67,700 SHO-BOND Holdings Co. Ltd. JPN JPY 329,699,000 0.98

1,181,460,300 3.50

Construction Materials1,344,000 Taiheiyo Cement Corp. JPN JPY 497,280,000 1.47

Diversified Financial Services1,120,000 Mitsubishi UFJ Lease & Finance Co. Ltd. JPN JPY 676,480,000 2.01

281,200 ORIX Corp. JPN JPY 512,908,800 1.52

1,189,388,800 3.53

Diversified Telecommunication Services280,700 Nippon Telegraph & Telephone Corp. JPN JPY 1,378,798,400 4.09

Electrical Equipment97,600 Nidec Corp. JPN JPY 984,296,000 2.92

474,800 Mitsubishi Electric Corp. JPN JPY 773,686,600 2.30

1,757,982,600 5.22

Electronic Equipment, Instruments & Components472,000 Shimadzu Corp. JPN JPY 878,864,000 2.61

8,900 Keyence Corp. JPN JPY 713,780,000 2.12303,700 Yokogawa Electric Corp. JPN JPY 514,164,100 1.52182,300 TOPCON Corp. JPN JPY 321,212,600 0.95104,100 Hamamatsu Photonics K.K. JPN JPY 320,107,500 0.95

2,748,128,200 8.15

Food & Staples Retailing158,600 Seven & I Holdings Co. Ltd. JPN JPY 706,245,800 2.09

Food Products218,000 NH Foods Ltd. JPN JPY 687,790,000 2.04223,900 Ajinomoto Co. Inc. JPN JPY 527,060,600 1.56

1,214,850,600 3.60

Health Care Equipment & Supplies123,900 Terumo Corp. JPN JPY 534,628,500 1.59

Hotels, Restaurants & Leisure133,500 HIS Co. Ltd. JPN JPY 410,512,500 1.22

Household Durables373,600 Sekisui Chemical Co. Ltd. JPN JPY 696,390,400 2.07

Industrial Conglomerates249,100 Seibu Holdings Inc. JPN JPY 522,113,600 1.55


— Franklin Japan Fund —

Schedule of Investments as of December 31, 2016(Currency — JPY)



Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Insurance85,300 Tokio Marine Holdings Inc. JPN JPY 409,098,800 1.22

210,100 The Dai-Ichi Life Holdings Inc. JPN JPY 408,854,600 1.21

817,953,400 2.43

IT Services116,500 NTT Data Corp. JPN JPY 658,225,000 1.96

61,900 Otsuka Corp. JPN JPY 337,974,000 1.00

996,199,000 2.96

Machinery30,300 FANUC Corp. JPN JPY 600,394,500 1.78

221,200 NGK Insulators Ltd. JPN JPY 501,460,400 1.49143,000 EBARA Corp. JPN JPY 476,190,000 1.41153,400 Metawater Co. Ltd. JPN JPY 424,764,600 1.26564,000 Sumitomo Heavy Industries Ltd. JPN JPY 424,692,000 1.26251,300 NSK Ltd. JPN JPY 340,260,200 1.01

2,767,761,700 8.21

Metals & Mining109,400 Mitsubishi Materials Corp. JPN JPY 392,746,000 1.16118,000 Sumitomo Metal Mining Co. Ltd. JPN JPY 177,826,000 0.53

570,572,000 1.69

Pharmaceuticals510,400 Astellas Pharma Inc. JPN JPY 828,634,400 2.46

99,800 Chugai Pharmaceutical Co. Ltd. JPN JPY 334,829,000 0.99

1,163,463,400 3.45

Real Estate Management & Development702,700 Tokyu Fudosan Holdings Corp. JPN JPY 484,863,000 1.44

Road & Rail212,400 Hitachi Transport System Ltd. JPN JPY 504,025,200 1.50

49,500 East Japan Railway Co. JPN JPY 499,950,000 1.48

1,003,975,200 2.98

Specialty Retail56,400 Nitori Co. Ltd. JPN JPY 753,504,000 2.24

Technology Hardware, Storage & Peripherals101,200 FUJIFILM Holdings Corp. JPN JPY 448,822,000 1.33

Tobacco223,300 Japan Tobacco Inc. JPN JPY 858,365,200 2.55

Trading Companies & Distributors537,000 Iwatani Corp. JPN JPY 334,014,000 0.99

TOTAL SHARES 33,797,810,320 100.28




— Franklin Japan Fund —

Schedule of Investments as of December 31, 2016 (continued)(Currency — JPY)



Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


23,220 B/E Aerospace Inc. USA USD 1,397,612 0.13662 United Technologies Corp. USA USD 72,568 0.01

1,470,180 0.14

Air Freight & Logistics5,996 FedEx Corp. USA USD 1,116,455 0.11

Airlines32,587 Delta Air Lines Inc. USA USD 1,602,955 0.1519,534 Southwest Airlines Co. USA USD 973,575 0.0911,666 United Continental Holdings Inc. USA USD 850,218 0.08

4,815 Hawaiian Holdings Inc. USA USD 274,455 0.032,739 Copa Holdings SA PAN USD 248,783 0.02

20,399 Latam Airline Group SA, ADR CHL USD 166,864 0.02

4,116,850 0.39

Auto Components29,351 Adient PLC USA USD 1,719,969 0.17

423 Delphi Automotive PLC GBR USD 28,489 0.00

1,748,458 0.17

Automobiles17,416 Harley-Davidson Inc. USA USD 1,016,049 0.1017,946 Peugeot SA FRA EUR 292,714 0.03

1,396 General Motors Co. USA USD 48,637 0.00

1,357,400 0.13

Banks193,426 Barclays PLC GBR GBP 532,656 0.05

2,402 JPMorgan Chase & Co. USA USD 207,269 0.023,196 Wells Fargo & Co. USA USD 176,132 0.022,162 PrivateBancorp Inc. USA USD 117,159 0.01

704 PNC Financial Services Group Inc. USA USD 82,340 0.011,241 U.S. Bancorp USA USD 63,750 0.011,265 BB&T Corp. USA USD 59,480 0.00

1,238,786 0.12

Beverages42,733 Brown-Forman Corp., B USA USD 1,919,566 0.18

171,915 Davide Campari-Milano SpA ITA EUR 1,681,177 0.169,849 Heineken NV NLD EUR 738,792 0.074,468 Molson Coors Brewing Co., B USA USD 434,781 0.043,049 The Coca-Cola Co. USA USD 126,412 0.011,123 PepsiCo Inc. USA USD 117,499 0.01

283 Constellation Brands Inc., A USA USD 43,387 0.01

5,061,614 0.48

Biotechnology33,315 BioMarin Pharmaceutical Inc. USA USD 2,759,815 0.2722,435 Celgene Corp. USA USD 2,596,851 0.2512,096 Shire PLC, ADR USA USD 2,060,916 0.2018,570 Incyte Corp. USA USD 1,862,014 0.18

7,919 Actelion Ltd. CHE CHF 1,714,759 0.1613,734 Alexion Pharmaceuticals Inc. USA USD 1,680,355 0.16

3,139 Regeneron Pharmaceuticals Inc. USA USD 1,152,296 0.1114,651 Bluebird Bio Inc. USA USD 903,967 0.0923,392 Acadia Pharmaceuticals Inc. USA USD 674,625 0.0744,612 Exelixis Inc. USA USD 665,165 0.0613,023 Sage Therapeutics Inc. USA USD 664,954 0.06

4,869 Tesaro Inc. USA USD 654,783 0.068,785 Ultragenyx Pharmaceutical Inc. USA USD 617,673 0.069,515 Kite Pharma Inc. USA USD 426,653 0.04

32,739 Proteostasis Therapeutics Inc. USA USD 401,380 0.048,044 Prothena Corp. PLC IRL USD 395,684 0.04

72,307 Amicus Therapeutics Inc. USA USD 359,366 0.0429,486 Epizyme Inc. USA USD 356,781 0.03

7,660 Clovis Oncology Inc. USA USD 340,257 0.0325,377 ARIAD Pharmaceuticals Inc. USA USD 315,690 0.0318,905 Otonomy Inc. USA USD 300,590 0.03

9,337 Sarepta Therapeutics Inc. USA USD 256,114 0.033,333 Vertex Pharmaceuticals Inc. USA USD 245,542 0.02

17,557 Insmed Inc. USA USD 232,279 0.025,980 Neurocrine Biosciences Inc. USA USD 231,426 0.02

11,589 Retrophin Inc. USA USD 219,380 0.0234,389 ProQR Therapeutics NV NLD USD 168,506 0.02

3,058 AveXis Inc. USA USD 145,958 0.0121,741 Inotek Pharmaceuticals Corp. USA USD 132,620 0.0123,804 Aevi Genomic Medicine Inc. USA USD 123,305 0.0110,198 Natera Inc. USA USD 119,419 0.01

3,273 DBV Technologies SA, ADR FRA USD 114,980 0.0118,116 BioCryst Pharmaceuticals Inc. USA USD 114,674 0.01


— Franklin K2 Alternative Strategies Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Biotechnology (continued)2,606 Agios Pharmaceuticals Inc. USA USD 108,748 0.015,104 Audentes Therapeutics Inc. USA USD 93,250 0.013,682 MacroGenics Inc. USA USD 75,260 0.014,172 Corvus Pharmaceuticals Inc. USA USD 59,660 0.019,779 Trevena Inc. USA USD 57,501 0.01

12,643 Aeglea Biotherapeutics Inc. USA USD 54,997 0.013,001 Ra Pharmaceuticals Inc. USA USD 45,585 0.00

26,798 OvaScience Inc. USA USD 41,001 0.001,019 Syndax Pharmaceuticals Inc. USA USD 7,306 0.00

23,552,085 2.26

Building Products12,521 Fortune Brands Home & Security Inc. USA USD 669,373 0.06

5,394 AO Smith Corp. USA USD 255,406 0.038,505 Griffon Corp. USA USD 222,831 0.021,908 Johnson Controls International PLC USA USD 78,591 0.01

1,226,201 0.12

Capital Markets24,427 Moody’s Corp. USA USD 2,302,733 0.2214,508 SEI Investments Co. USA USD 716,115 0.07

3,018,848 0.29

Chemicals19,230 The Sherwin-Williams Co. USA USD 5,167,870 0.5024,615 Syngenta AG, ADR CHE USD 1,945,816 0.1928,955 Ingevity Corp. USA USD 1,588,471 0.1537,985 Croda International PLC GBR GBP 1,496,134 0.1421,372 Trinseo SA USA USD 1,267,360 0.12

2,666 Valspar Corp. USA USD 276,224 0.034,210 The Dow Chemical Co. USA USD 240,896 0.02

839 E. I. du Pont de Nemours and Co. USA USD 61,583 0.01311 PPG Industries Inc. USA USD 29,470 0.00

12,073,824 1.16

Commercial Services & Supplies14,391 G & K Services Inc., A USA USD 1,388,012 0.1358,212 Atento SA ESP USD 442,411 0.0413,875 Edenred FRA EUR 275,095 0.03

7,193 West Corp. USA USD 178,099 0.02

2,283,617 0.22

Communications Equipment74,663 Brocade Communications Systems Inc. USA USD 932,541 0.0954,042 Oclaro Inc. USA USD 483,676 0.05

3,214 Arista Networks Inc. USA USD 311,019 0.03

1,727,236 0.17

Construction & Engineering9,241 Fluor Corp. USA USD 485,337 0.05

Construction Materials5,342 Martin Marietta Materials Inc. USA USD 1,183,413 0.117,132 Heidelberger Zement AG DEU EUR 665,390 0.06

18,295 Buzzi Unicem SpA ITA EUR 433,503 0.0414,977 Summit Materials Inc., A USA USD 356,303 0.04

2,638,609 0.25

Containers & Packaging36,026 Ball Corp. USA USD 2,704,472 0.26

799 International Paper Co. USA USD 42,395 0.01479 WestRock Co. USA USD 24,319 0.00

2,771,186 0.27

Diversified Consumer Services4,650 Sotheby’s USA USD 185,349 0.02

Diversified Financial Services14,675 ECN Capital Corp. CAN CAD 36,069 0.00

Diversified Telecommunication Services47,881 Level 3 Communications Inc. USA USD 2,698,573 0.26

2,958,248 Telecom Italia SpA ITA EUR 2,139,318 0.208,024 CenturyLink Inc. USA USD 190,811 0.022,633 Verizon Communications Inc. USA USD 140,550 0.011,531 AT&T Inc. USA USD 65,113 0.01

5,234,365 0.50

Electric Utilities1,900 PG&E Corp. USA USD 115,463 0.01

861 NextEra Energy Inc. USA USD 102,855 0.011,754 Exelon Corp. USA USD 62,249 0.01

280,567 0.03






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Electronic Equipment, Instruments & Components5,675 Apple Inc. USA USD 657,279 0.06

48,170 Pure Storage Inc., A USA USD 544,803 0.0527,026 VeriFone Systems Inc. USA USD 479,171 0.05

1,030,000 Tongda Group Holdings Ltd. HKG HKD 265,652 0.03

1,946,905 0.19

Energy Equipment & Services83,563 FMC Technologies Inc. USA USD 2,968,993 0.28

1,574 Halliburton Co. USA USD 85,138 0.01

3,054,131 0.29

Food & Staples Retailing27,399 Casey’s General Stores Inc. USA USD 3,257,193 0.31

198,138 Rite Aid Corp. USA USD 1,632,657 0.161,486 The Kroger Co. USA USD 51,282 0.01

574 CVS Health Corp. USA USD 45,294 0.00

4,986,426 0.48

Food Products56 Chocoladefabriken Lindt & Spruengli AG CHE CHF 3,404,105 0.33

31,283 WhiteWave Foods Co., A USA USD 1,739,335 0.1714,278 The Hershey Co. USA USD 1,476,774 0.14

9,172 Mead Johnson Nutrition Co., A USA USD 649,011 0.06

7,269,225 0.70

Health Care Equipment & Supplies27,997 St. Jude Medical Inc. USA USD 2,245,079 0.2211,863 IDEXX Laboratories Inc. USA USD 1,391,174 0.1320,647 DENTSPLY SIRONA Inc. USA USD 1,191,951 0.1172,147 Smith & Nephew PLC GBR GBP 1,085,639 0.1029,258 Boston Scientific Corp. USA USD 632,851 0.06

8,883 DexCom Inc. USA USD 530,315 0.059,227 Alere Inc. USA USD 359,576 0.04

22,881 GenMark Diagnostics Inc. USA USD 280,063 0.031,359 Edwards Lifesciences Corp. USA USD 127,338 0.01

13,367 Derma Sciences Inc. USA USD 69,508 0.011,319 iRhythm Technologies Inc. USA USD 39,570 0.00

280 Medtronic PLC USA USD 19,944 0.00

7,973,008 0.76

Health Care Providers & Services15,292 UnitedHealth Group Inc. USA USD 2,447,332 0.2414,923 Aetna Inc. USA USD 1,850,601 0.18

9,024 Humana Inc. USA USD 1,841,167 0.188,091 Cigna Corp. USA USD 1,079,258 0.10

18,671 Team Health Holdings Inc USA USD 811,255 0.0811,892 Centene Corp. USA USD 672,017 0.06

8,378 Celesio AG DEU EUR 226,607 0.02

8,928,237 0.86

Health Care Technology4,423 Tabula Rasa Healthcare Inc. USA USD 66,257 0.01

Hotels, Restaurants & Leisure25,991 Carnival Corp. USA USD 1,353,091 0.1319,135 Yum! Brands Inc. USA USD 1,211,820 0.11

3,407 Wynn Resorts Ltd. USA USD 294,740 0.0314,511 Extended Stay America Inc. USA USD 234,353 0.02

637 McDonald’s Corp. USA USD 77,536 0.012,389 Hilton Worldwide Holdings Inc. USA USD 64,981 0.01

3,236,521 0.31

Household Durables8,776 Whirlpool Corp. USA USD 1,595,214 0.15

17,800 Sony Corp. JPN JPY 498,781 0.054,025 Harman International Industries Inc. USA USD 447,419 0.04

2,541,414 0.24

Independent Power and Renewable Electricity Producers96,679 TerraForm Global Inc., A USA USD 381,882 0.04

Industrial Conglomerates31,917 Smiths Group PLC GBR GBP 556,977 0.05

4,131 General Electric Co. USA USD 130,540 0.01500 Roper Technologies Inc. USA USD 91,540 0.01599 Honeywell International Inc. USA USD 69,394 0.01

848,451 0.08

Insurance24,145 Endurance Specialty Holdings Ltd. USA USD 2,230,998 0.2118,294 W. R. Berkley Corp. USA USD 1,216,734 0.12

142,334 Delta Lloyd NV NLD EUR 796,635 0.0879,098 RSA Insurance Group PLC GBR GBP 571,235 0.05

1,116 MetLife Inc. USA USD 60,141 0.01






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Insurance (continued)433 Chubb Ltd. USA USD 57,208 0.00

4,932,951 0.47

Internet & Direct Marketing Retail54,895 Wayfair Inc., A USA USD 1,924,070 0.18

8,867 Expedia Inc. USA USD 1,004,454 0.10879 Amazon.com Inc. USA USD 659,136 0.06

3,587,660 0.34

Internet Software & Services21,860 Facebook Inc., A USA USD 2,514,993 0.24

8,730 Alibaba Group Holding Ltd., ADR CHN USD 766,581 0.0787,286 Just Eat PLC GBR GBP 627,678 0.0619,459 eBay Inc. USA USD 577,738 0.0615,141 GrubHub Inc. USA USD 569,604 0.06

6,353 J2 Global Inc. USA USD 519,675 0.0514,141 Zillow Group Inc., C USA USD 515,722 0.05

5,941 VeriSign Inc. USA USD 451,932 0.04525 Alphabet Inc., C USA USD 405,206 0.04

15,867 Tencent Holdings Ltd. CHN HKD 388,158 0.04487 Alphabet Inc., A USA USD 385,923 0.04

6,772 Zillow Group Inc., A USA USD 246,839 0.022,046 Akamai Technologies Inc. USA USD 136,427 0.013,287 Benefitfocus Inc. USA USD 97,624 0.01

49 Baidu.com, ADR CHN USD 8,056 0.00

8,212,156 0.79

IT Services26,099 MasterCard Inc., A USA USD 2,694,722 0.26

8,568 Alliance Data Systems Corp. USA USD 1,957,788 0.1923,672 Global Payments Inc. USA USD 1,643,074 0.16

9,169 WEX Inc. USA USD 1,023,260 0.1015,832 Total System Services Inc. USA USD 776,243 0.0718,212 PayPal Holdings Inc. USA USD 718,828 0.07

5,013 FleetCor Technologies Inc. USA USD 709,440 0.077,626 EPAM Systems Inc. USA USD 490,428 0.057,838 Vantiv Inc., A USA USD 467,302 0.044,005 Automatic Data Processing Inc. USA USD 411,634 0.046,518 Cognizant Technology Solutions Corp., A USA USD 365,204 0.03

20,621 Nets A/S, Reg S DNK DKK 360,886 0.0399,606 Worldpay Group PLC GBR GBP 331,314 0.03

8,729 Blackhawk Network Holdings Inc. USA USD 328,865 0.033,388 Visa Inc., A USA USD 264,332 0.038,048 Genpact Ltd. USA USD 195,888 0.022,426 Cardtronics PLC, A USA USD 132,387 0.01

12,871,595 1.23

Life Sciences Tools & Services21,668 Gerresheimer AG DEU EUR 1,610,759 0.15

6,906 Illumina Inc. USA USD 884,244 0.091,573 Mettler-Toledo International Inc. USA USD 658,395 0.064,867 NanoString Technologies Inc. USA USD 108,534 0.01

3,261,932 0.31

Machinery8,013 Kuka AG, DEU EUR 968,746 0.099,094 Caterpillar Inc. USA USD 843,378 0.08

18,308 Trinity Industries Inc. USA USD 508,230 0.059,357 Manitowoc Foodservice Inc. USA USD 180,871 0.02

667 Dover Corp. USA USD 49,978 0.00

2,551,203 0.24

Marine153,810 Irish Continental Group PLC IRL EUR 701,872 0.07

Media19,722 The Walt Disney Co. USA USD 2,055,427 0.2033,782 DISH Network Corp., A USA USD 1,956,991 0.1940,916 Stroeer SE & Co. KGaA DEU EUR 1,796,244 0.1750,657 Liberty Global PLC, A GBR USD 1,549,598 0.15

526,183 ITV PLC GBR GBP 1,338,438 0.133,875 Charter Communications Inc., A USA USD 1,115,690 0.11

22,578 Liberty Global PLC, C GBR USD 670,567 0.0618,875 AMC Entertainment Holdings Inc., A USA USD 635,144 0.0615,150 Viacom Inc., B USA USD 531,765 0.05

623,944 Postmedia Network Canada Corp. CAN CAD 283,474 0.037,201 Liberty Siriusxm Group USA USD 248,579 0.02

54,078 Entertainment One Ltd. CAN GBP 153,485 0.012,784 Liberty Global PLC LiLAC, C GBR USD 58,937 0.01

836 Comcast Corp., A USA USD 57,726 0.011,804 Liberty Media Group, A USA USD 56,555 0.00

790 Liberty Braves Group, A USA USD 16,187 0.00

12,524,807 1.20






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Metals & Mining200,408 Teck Resources Ltd., B CAN CAD 4,014,172 0.39

61,218 United States Steel Corp. USA USD 2,020,806 0.19144,978 Freeport-McMoRan Inc., B USA USD 1,912,260 0.18

41,516 Newmont Mining Corp. USA USD 1,414,450 0.1433,694 Boliden AB SWE SEK 879,833 0.0918,867 Voestalpine AG AUT EUR 740,592 0.0753,332 First Quantum Minerals Ltd. CAN CAD 530,281 0.0526,321 Stillwater Mining Co. USA USD 424,031 0.04

9,733 ThyssenKrupp AG DEU EUR 231,957 0.02

12,168,382 1.17

Multi-Utilities997 Sempra Energy USA USD 100,338 0.01

Oil, Gas & Consumable Fuels28,372 InterOil Corp. CAN CAD 1,349,940 0.1325,391 Western Refining Inc. USA USD 961,049 0.0922,810 Spectra Energy Corp. USA USD 937,263 0.09

9,849 Hess Corp. USA USD 613,494 0.0641,336 Whiting Petroleum Corp. USA USD 496,859 0.0536,352 Alon USA Energy Inc. USA USD 413,686 0.0449,000 DHT Holdings Inc. USA USD 202,860 0.02

2,233 Exxon Mobil Corp. USA USD 201,551 0.024,821 Pacific Exploration and Production Corp. COL CAD 196,191 0.02

890 Chevron Corp. USA USD 104,753 0.015,370 Halcon Resources Corp. USA USD 50,156 0.012,193 Kinder Morgan Inc. USA USD 45,417 0.003,703 EnCana Corp. CAN USD 43,473 0.00

362 PDC Energy Inc. USA USD 26,274 0.00361 EQT Corp. USA USD 23,609 0.00303 Valero Energy Corp. USA USD 20,701 0.00

5,687,276 0.54

Paper & Forest Products166,455 Canfor Corp. CAN CAD 1,893,098 0.18

34,225 West Fraser Timber Co. Ltd. CAN CAD 1,223,805 0.12

3,116,903 0.30

Pharmaceuticals10,221 Allergan PLC USA USD 2,146,512 0.2138,526 Aerie Pharmaceuticals Inc. USA USD 1,458,209 0.1424,494 Bristol-Myers Squibb Co. USA USD 1,431,429 0.14

1,792 Allergan PLC, 5.50%, cvt. pfd. USA USD 1,366,328 0.1315,832 Eli Lilly & Co. USA USD 1,164,444 0.1140,187 AstraZeneca PLC, ADR GBR USD 1,097,909 0.1114,887 Dermira Inc. USA USD 451,523 0.0427,348 Assembly Biosciences Inc. USA USD 332,278 0.0338,945 Ocular Therapeutix Inc. USA USD 325,970 0.0320,511 Intra-Cellular Therapies Inc. USA USD 309,511 0.03

2,199 GW Pharmaceuticals PLC, ADR GBR USD 245,738 0.031,946 Johnson & Johnson USA USD 224,199 0.024,002 Pfizer Inc. USA USD 129,985 0.014,110 Cassiopea SpA, Reg S ITA CHF 118,662 0.01

308 Steadymed Ltd. ISR USD 816 0.00

10,803,513 1.04

Professional Services21,732 Robert Half International Inc. USA USD 1,060,087 0.1035,439 TriNet Group Inc. USA USD 907,947 0.0924,063 Experian PLC GBR GBP 466,773 0.0413,740 TransUnion USA USD 424,978 0.04

4,159 WageWorks Inc. USA USD 301,528 0.031,820 Equifax Inc. USA USD 215,179 0.02

3,376,492 0.32

Real Estate Management & Development43,933 CBRE Group Inc. USA USD 1,383,450 0.1330,432 Grand City Properties SA DEU EUR 553,872 0.06

1,937,322 0.19

Road & Rail55,650 CSX Corp. USA USD 1,999,505 0.1919,220 Union Pacific Corp. USA USD 1,992,730 0.1913,865 Old Dominion Freight Line Inc. USA USD 1,189,478 0.12

5,181,713 0.50

Semiconductors & Semiconductor Equipment29,549 NXP Semiconductors NV NLD USD 2,896,097 0.28

3,591 Microchip Technology Inc. USA USD 230,363 0.026,200 Impinj Inc. USA USD 219,108 0.02

913 Broadcom Ltd. SGP USD 161,391 0.0211,165 ON Semiconductor Corp. USA USD 142,465 0.01

2,134 QUALCOMM Inc. USA USD 139,137 0.01






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Semiconductors & Semiconductor Equipment (continued)1,295 Analog Devices Inc. USA USD 94,043 0.011,644 Siltronic AG DEU EUR 76,188 0.015,694 Cypress Semiconductor Corp. USA USD 65,139 0.011,333 Intel Corp. USA USD 48,348 0.00

4,072,279 0.39

Software58,107 Microsoft Corp. USA USD 3,610,769 0.3537,750 Mentor Graphics Corp. USA USD 1,392,598 0.1312,914 Guidewire Software Inc. USA USD 637,048 0.06

6,512 Salesforce.com Inc. USA USD 445,812 0.048,429 Hubspot Inc. USA USD 396,163 0.043,336 Adobe Systems Inc. USA USD 343,441 0.034,094 Blackbaud Inc. USA USD 262,016 0.039,904 Square Enix Holdings Co. Ltd. JPN JPY 254,644 0.035,947 Mobileye NV ISR USD 226,700 0.029,368 Atlassian Corp. PLC AUS USD 225,581 0.021,837 ServiceNow Inc. USA USD 136,563 0.014,476 Paylocity Holding Corp. USA USD 134,325 0.012,030 Oracle Corp. USA USD 78,054 0.01

8,143,714 0.78

Specialty Retail36,489 The Home Depot Inc. USA USD 4,892,445 0.4763,181 Cabela’s Inc., A USA USD 3,699,248 0.36

4,335 AutoZone Inc. USA USD 3,423,740 0.3362,030 AutoNation Inc. USA USD 3,017,760 0.2913,751 Foot Locker Inc. USA USD 974,808 0.09

226,088 Sports Direct International PLC GBR GBP 776,266 0.0738,144 MarineMax Inc. USA USD 738,086 0.07

17,522,353 1.68

Textiles, Apparel & Luxury Goods21,866 NIKE Inc., B USA USD 1,111,449 0.1117,815 Michael Kors Holdings Ltd. USA USD 765,689 0.0716,095 Coach Inc. USA USD 563,647 0.05

9,337 Deckers Outdoor Corp. USA USD 517,176 0.0518,425 Moncler SpA ITA EUR 320,601 0.03

3,278,562 0.31

Tobacco65,069 Reynolds American Inc. USA USD 3,646,467 0.35

626 Philip Morris International Inc. USA USD 57,273 0.01698 Altria Group Inc. USA USD 47,199 0.00

3,750,939 0.36

Trading Companies & Distributors6,946 Herc Holdings Inc. USA USD 278,951 0.034,242 Air Lease Corp. USA USD 145,628 0.01

316 Brenntag AG DEU EUR 17,563 0.00

442,142 0.04

Wireless Telecommunication Services14,787 NTT DoCoMo Inc. JPN JPY 336,922 0.03

TOTAL SHARES 241,418,519 23.15


1,458 Halcon Resources Corp., wts., 09/09/20 USA USD 3,499 0.0037,000 Kinder Morgan Inc., wts., 05/25/17 USA USD 204 0.00

3,703 0.00



TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESElectronic Equipment, Instruments & Components

3,852 Belden Inc., 6.75%, cvt. pfd. USA USD 407,041 0.04

Food Products7,082 Bunge Ltd., 4.875%, cvt. pfd. USA USD 723,143 0.07

Household Durables3,364 William Lyon Homes, 6.50%, cvt. pfd. USA USD 320,320 0.03

Internet Software & Services17,565 Baba Mandatory Exchangeable Trust, 5.75%, cvt. pfd., 144A CHN USD 1,921,172 0.19

Oil, Gas & Consumable Fuels1,228 Golar LNG Ltd. NOR NOK 28,170 0.00






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Pharmaceuticals161 Teva Pharmaceutical Industries Ltd., 7.00%, cvt. pfd. ISR USD 103,845 0.01


WARRANTSBiotechnology

60,801 Mast Therapeutics Inc., wts., 06/14/18 USA USD 122 0.00


BONDSAsset-Backed Securities

992,820 Motel 6 Trust, 144A, 8.23%, 02/05/20 USA USD 1,003,369 0.10666,973 Latam Airlines 2015-1 Pass Through Trust B, secured note, 4.50%, 08/15/25 CHL USD 646,964 0.06500,000 CPS Auto Receivables Trust, 2016-B, E, 144A, 8.14%, 05/15/23 USA USD 519,548 0.05450,000 GS Mortgage Securities Trust, 2007-GG10, AM, FRN, 5.793%, 08/10/45 † USA USD 444,876 0.04419,645 Shenton Aircraft Investment I Ltd., 2015-1A, A, 144A, 4.75%, 10/15/42 USA USD 422,797 0.04410,000 Santander Drive Auto Receivables Trust, 2016-1, 3.09%, 04/15/22 USA USD 416,328 0.04381,332 Air Canada Pass Through Trust, 2015-2, Class B, third lien, 144A, 5.00%, 06/15/25 CAN USD 381,809 0.04352,900 Honda Auto Receivables Owner Trust, 2015-02, A3, 1.04%, 02/21/19 USA USD 352,556 0.03350,000 World Financial Network Credit Card Master Trust, 2015-C, A, 1.26%, 03/15/21 USA USD 350,230 0.03345,000 Honda Auto Receivables Owner Trust, 2015-4, A3, 1.23%, 09/23/19 USA USD 344,213 0.03270,472 Dukinfield PLC, 2, A, Reg S, FRN, 1.615%, 12/20/52 † GBR GBP 334,278 0.03330,000 CarMax Auto Owner Trust, 2016-1, A4, 1.88%, 06/15/21 USA USD 328,832 0.03367,427 Alternative Loan Trust, 2005-14, 2A1, FRN, 0.966%, 05/25/35 † USA USD 307,175 0.03300,000 Toyota Auto Receivables Owner Trust, 2015-B, A3, 1.27%, 05/15/19 USA USD 300,026 0.03300,000 Honda Auto Receivables Owner Trust, 2015-3, A3, 1.27%, 04/18/19 USA USD 299,937 0.03280,000 Ford Credit Auto Owner Trust, 2015-C, A3, 1.41%, 02/15/20 USA USD 280,133 0.03282,440 AIM Aviation Finance Ltd., 2015-1A, B1, 144A, FRN, 5.072%, 02/15/40 † CYM USD 271,849 0.03250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA1, M3, FRN, 4.056%,

10/25/27 † USA USD 262,161 0.03324,456 IndyMac Index Mortgage Loan Trust, 2006-AR2, 2A1, FRN, 0.966%, 02/25/46 † USA USD 257,884 0.03250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN1, M2, FRN, 2.956%,

02/25/24 † USA USD 255,843 0.02250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA1, M2, FRN, 2.606%,

10/25/27 † USA USD 253,677 0.02250,000 Capital One Multi-Asset Execution Trust, 2015-A2, 2.08%, 03/15/23 USA USD 250,786 0.02200,000 Towd Pointt Mortgage Funding, 2016-GR1X, B, Reg S, FRN, 1.802%, 07/20/46 † GBR GBP 247,227 0.02250,000 OneMain Financial Issuance Trust, 2015-2A, D, 144A, 5.64%, 07/18/25 USA USD 247,122 0.02232,678 Banc of America Alternative Loan Trust, 2004-6, 2A1, 6.00%, 07/25/34 USA USD 245,380 0.02305,205 Structured ARM Loan Trust, 2005-14, A1, FRN, 1.066%, 07/25/35 † USA USD 225,491 0.02223,786 VOLT XLVIII LLC, 2016-NPL8, A1, 144A, FRN, 3.50%, 07/25/46 † USA USD 223,566 0.02215,000 DT Auto Owner Trust, 2016-2A, D, 144A, 5.43%, 11/15/22 USA USD 222,080 0.02210,000 American Homes 4 Rent, sub. bond, 2014-SFR2, E, 144A, 6.231%, 10/17/36 USA USD 220,196 0.02215,000 MASTR Alternative Loan Trust, 2004-2, 8A4, 5.50%, 03/25/34 USA USD 219,836 0.02300,784 Alliance Bancorp Trust, 2007-OA1, A1, FRN, 0.996%, 07/25/37 † USA USD 219,440 0.02263,803 IndyMac Index Mortgage Loan Trust, 2004-AR12, A1, FRN, 1.536%, 12/25/34 † USA USD 218,406 0.02215,000 American Express Issuance Trust II, 2013-2, A, FRN, 1.134%, 08/15/19 † USA USD 215,901 0.02208,792 VOLT XXVI LLC, 2014-NPL6, A1, 144A, FRN, 3.125%, 09/25/43 † USA USD 209,019 0.02200,000 Prestige Auto Receivables Trust, 2016-1A, E, 144A, 7.69%, 03/15/23 USA USD 208,987 0.02215,000 SCG Trust, 2013-SRP1, D, 144A, FRN, 4.048%, 11/15/26 † USA USD 206,685 0.02205,000 Sofi Professional Loan Program LLC, 2016-A, B, 144A, 3.57%, 01/26/38 USA USD 205,274 0.02213,000 RCO Depositor II LLC, 2015-2A, M, 144A, FRN, 5.00%, 11/25/45 † USA USD 204,639 0.02200,000 American Homes 4 Rent, 2015-SFR1, E, 144A, 5.639%, 04/17/52 USA USD 201,387 0.02200,000 Invitation Homes Trust, 2015-SFR1, E, 4.936%, 03/17/32 USA USD 201,167 0.02200,000 Discover Card Execution Note Trust, 2013-A1, A1, FRN, 1.004%, 08/17/20 † USA USD 200,211 0.02200,000 Chase Issuance Trust, 2015-A5, A5, 1.36%, 04/15/20 USA USD 199,911 0.02200,000 CDGJ Commercial Mortgage Trust 2014-BXCH, 3.204%, 12/15/27 USA USD 199,506 0.02200,000 Chase Issuance Trust, 2015-A4, A, 1.84%, 04/15/22 USA USD 199,033 0.02193,077 BCAP LLC Trust, 2007-AA2, 22A1, 6.00%, 03/25/22 USA USD 191,399 0.02229,963 American Home Mortgage Investment Trust, 2006-1, 11A1, FRN, 1.036%, 03/25/46 † USA USD 190,528 0.02160,470 Ludgate Funding PLC, 2008-W1X, A1, Reg S, FRN, 0.983%, 01/01/61 † GBR GBP 188,472 0.02164,087 MASTR Alternative Loan Trust, 2004-8, 2A1, 6.00%, 09/25/34 USA USD 175,222 0.02209,856 JPMorgan Alternative Loan Trust, 2006-A1, 3A1, FRN, 2.901%, 03/25/36 † USA USD 173,428 0.02180,000 Merlin Aviation Holdings DAC, 2016-1, A, 144A, FRN, 4.50%, 12/15/32 † USA USD 173,079 0.02172,424 Banc of America Funding Corp., 2007-4, 5A1, 5.50%, 11/25/34 USA USD 171,342 0.02168,439 Alternative Loan Trust, 2003-22CB, 3A1, 6.00%, 12/25/33 USA USD 169,168 0.02167,211 Ajax Mortgage Loan Trust, 2016-B, A, 144A, FRN, 4.00%, 09/25/65 † USA USD 167,292 0.02165,000 JPMorgan Chase Commercial Mortgage Securities Trust, 2015-SGP, D, 144A, FRN,

5.204%, 07/15/36 † USA USD 166,716 0.02183,227 GMACM Mortgage Loan Trust, 2005-AR4, 3A1, FRN, 3.578%, 07/19/35 † USA USD 166,418 0.02161,547 Bayview Opportunity Master Fund, 2016-LT1, A1, 144A, FRN, 3.475%, 10/28/31 † USA USD 161,295 0.02159,399 GSR Mortgage Loan Trust, 2005-AR6, A45, FRN, 3.076%, 09/25/35 † USA USD 159,939 0.02157,516 Honda Auto Receivables Owner Trust, 2016-1, 1.01%, 06/18/18 USA USD 157,468 0.02155,000 Ally Auto Receivables Trust, 2016-3, A3, 1.44%, 08/17/20 USA USD 155,010 0.02150,000 Morgan Stanley Capital I Trust, 144A, FRN, 5.472%, 06/15/44 † USA USD 153,653 0.02150,000 Chase Issuance Trust, 2014-A7, A7, 1.38%, 11/15/19 USA USD 150,146 0.01150,000 USAA Auto Owner Trust, 2015-1, A3, 1.20%, 06/17/19 USA USD 150,109 0.01150,000 Toyota Auto Receivables Owner Trust, 2016-D, A2B, FRN, 0.834%, 05/15/19 † USA USD 150,032 0.01188,458 MASTR ARM Trust, FRN, 2.989%, 03/25/35 † USA USD 147,283 0.01140,000 DT Auto Owner Trust, 2016-1A, D, 144A, 4.66%, 12/15/22 USA USD 142,139 0.01140,169 Oak Hill Advisors Residential Loan Trust, 2015-NPL2, A1, 144A, 3.969%, 07/25/55 USA USD 140,169 0.01136,443 VOLT XXXIX LLC, 2015-NP13, A1, 144A, FRN, 4.125%, 10/25/45 † USA USD 137,605 0.01






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Marketvalue

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assets

Asset-Backed Securities (continued)135,000 Commercial Mortgage Trust, 2016-SAVA, C, 144A, FRN, 3.704%, 10/15/34 † USA USD 135,677 0.01138,826 BXHTL Mortgage Trust, 2015-DRMZ, M, 144A, FRN, 8.734%, 05/15/18 † USA USD 135,074 0.01132,009 JP Morgan Mortgage Trust, 2004-S1, 2A1, 6.00%, 09/25/34 USA USD 133,787 0.01145,956 Harborview Mortgage Loan Trust, 2004-2, 1A1, FRN, 1.256%, 06/19/34 † USA USD 133,243 0.01130,000 World Financial Network Credit Card Master Trust, 3.09%, 04/17/23 USA USD 132,198 0.01135,000 OneMain Financial Issuance Trust, 2015-3A, B, 144A, 4.16%, 11/20/28 USA USD 129,889 0.01126,210 Ford Credit Auto Owner Trust, 2014-C, A3, 1.06%, 05/15/19 USA USD 126,144 0.01125,000 WF-RBS Commercial Mortgage Trust, 2012-C6, D, 144A, FRN, 5.589%, 04/15/45 † USA USD 125,526 0.01123,334 Ajax Mortgage Loan Trust, 2016-C, A, 144A, 4.00%, 10/25/57 USA USD 123,904 0.01141,171 Harborview Mortgage Loan Trust, 2004-11, 2A2A, FRN, 1.376%, 01/19/35 † USA USD 120,134 0.01120,000 Toyota Auto Receivables Owner Trust, 2015-C, A3, 1.34%, 06/17/19 USA USD 120,021 0.01120,000 VOLT XL LLC, 2015-NP14, A2, 144A, FRN, 4.875%, 11/27/45 † USA USD 115,170 0.01135,178 WaMu Mortgage Pass-Through Certificates, 2007-HY5, 2A3, FRN, 2.40%, 05/25/37 † USA USD 113,166 0.01117,753 Harborview Mortgage Loan Trust, 2003-2, 1A, FRN, 1.476%, 10/19/33 † USA USD 110,819 0.01106,518 Alternative Loan Trust, 2004-J10, 2CB1, 6.00%, 09/25/34 USA USD 110,177 0.01110,000 USAA Auto Owner Trust, 2016-1, A3, 1.20%, 06/15/20 USA USD 109,571 0.01110,000 CPS Auto Receivables Trust, 2014-B, D, 144A, 4.62%, 05/15/20 USA USD 109,228 0.01108,446 VOLT XXXIII LLC, 2015-NPL5, A1, 144A, 3.50% to 03/25/18, 6.50% to 03/25/19,

7.50% thereafter, 03/25/55 USA USD 109,029 0.01113,714 Merrill Lynch Mortgage Investors Trust, 2006-1, 1A, FRN, 3.014%, 02/25/36 † USA USD 105,526 0.01105,000 Colony American Finance Ltd., 2015-1, D, 144A, 5.649%, 10/15/47 USA USD 103,665 0.01100,000 Morgan Stanley Capital I Trust, 5.472%, 06/15/44 USA USD 103,162 0.01100,000 First Investors Auto Owner Trust, 2016-1A, D, 144A, 4.70%, 04/18/22 USA USD 102,740 0.01125,947 RFMSI Trust, 2005-SA1, 1A1, FRN, 3.962%, 03/25/35 † USA USD 101,616 0.01100,000 Colony American Homes, 2014-2A, E, 144A, FRN, 3.77%, 07/17/31 † USA USD 100,682 0.01100,000 Chase Issuance Trust, 2013-A9, A, FRN, 1.124%, 11/16/20 † USA USD 100,341 0.01100,000 Chase Issuance Trust, 2015-A2, A2, 1.59%, 02/18/20 USA USD 100,296 0.01100,000 Discover Card Execution Note Trust, 2015-A1, A1, FRN, 1.054%, 08/17/20 † USA USD 100,174 0.01100,000 Chase Issuance Trust, 2015-A1, A1, FRN, 1.024%, 02/18/20 † USA USD 100,147 0.01100,000 OneMain Financial Issuance Trust, 2014-2A, B, 3.02%, 09/18/24 USA USD 100,074 0.01100,000 Chase Issuance Trust, 2015-A3, A3, FRN, 0.954%, 04/15/19 † USA USD 100,036 0.01100,000 Capital One Multi-Asset Execution Trust, 2007-A1, A1, FRN, 0.754%, 11/15/19 † USA USD 100,000 0.01100,000 Bank of America Credit Card Trust, 2015-A2, 1.360%, 09/15/20 USA USD 99,967 0.01100,000 Wedgewood Real Estate Trust, 2016-1, A2, 144A, FRN, 5.00%, 07/15/46 † USA USD 99,950 0.01100,000 Discover Card Execution Note Trust, 2015-A2, 1.90%, 10/17/22 USA USD 99,580 0.01100,000 American Homes 4 Rent, 2014-SFR1, E, 144A, FRN, 3.236%, 06/17/31 † USA USD 99,548 0.01100,000 CAM Mortgage LLC, 2015-1, M, 144A, FRN, 4.75%, 07/15/64 † USA USD 99,259 0.01102,844 WaMu Mortgage Pass-Through Certificates, 2006-AR11, FRN, 2.098%, 09/25/46 † USA USD 98,814 0.01100,000 SCG Trust, 2013-SRP1, C, 144A, FRN, 3.954%, 11/15/26 † USA USD 97,513 0.01

97,117 VOLT XXXV LLC, 2016-NPL9, A1, 144A, 3.50% to 08/25/19, 6.50% to 08/25/20,7.50% thereafter, 09/25/46 USA USD 97,134 0.01

100,000 CAM Mortgage Trust, 2016-1, M, 144A, FRN, 5.00%, 01/15/56 † USA USD 96,490 0.0195,012 U.S. Residential Opportunity Fund III Trust, 2016-1III, A, 144A, 3.475%, 07/27/36 USA USD 94,847 0.0191,156 Bayview Opportunity Master Fund, 2016-RN3, A1, 144A, FRN, 3.598%, 09/29/31 † USA USD 91,037 0.0189,539 CHL Mortgage Pass-through Trust, 2004-HYB4, 2A1, FRN, 3.056%, 09/20/34 † USA USD 86,287 0.0192,125 Deutsche Mortgage Securities Inc. Mortgage Loan Trust, 2004-4, 7AR1, FRN, 1.106%,

06/25/34 † USA USD 84,418 0.0180,964 Newgate Fund PLC, 2007-3X, A2B, Reg S, FRN, 0.284%, 12/15/50 † GBR EUR 81,930 0.0179,818 VOLT XXXVI LLC, 2015-NP10, A1, 3.625%, 07/25/45 USA USD 80,115 0.0188,932 GSR Mortgage Loan Trust, 2005-AR4, 4A1, FRN, 3.118%, 07/25/35 † USA USD 79,402 0.0178,723 RCO Depositor II LLC, 2015-2A, A, 144A, FRN, 4.50%, 11/25/45 † USA USD 78,832 0.0175,000 Bank of America Credit Card Trust, 2016-A1, A, FRN, 1.094%, 10/15/21 † USA USD 75,259 0.0175,460 Bayview Opportunity Master Fund, 2016-RPL3, 144A, 3.475%, 07/28/31 USA USD 75,197 0.0175,000 Hyundai Auto Receivables Trust, 2015-B, A3, 1.12%, 11/15/19 USA USD 74,872 0.0162,536 Eurosail PLC, 2007-2X, A3C, Reg S, FRN, 0.527%, 03/13/45 † GBR GBP 74,673 0.0175,000 Nissan Auto Receivables Owner Trust, 2016-C, A3, FRN, 1.18%, 01/15/21 † USA USD 74,312 0.0184,053 American Home Mortgage Investment Trust, 2005-2, 1A1, FRN, 1.056%, 09/25/45 † USA USD 69,916 0.0185,399 RALI Series Trust, 2006-QO4, 2A1 FRN, 0.946%, 04/25/46 † USA USD 69,324 0.0176,081 Citigroup Mortgage Loan Trust Inc., 2014-11, 2A1, FRN, 0.896%, 08/25/36 † USA USD 69,274 0.0178,503 Citigroup Mortgage Loan Trust Inc., 2005-3, 2A3, FRN, 3.005%, 08/25/35 † USA USD 68,158 0.0164,285 Alternative Loan Trust, 2003-22CB, 1A1, 5.75%, 12/25/33 USA USD 66,050 0.0165,000 World Financial Network Credit Card Master Trust, 2015-A, A, FRN, 1.184%,

02/15/22 † USA USD 65,144 0.0160,000 Bank of America Credit Card Trust, 2014-A3, A, FRN, 0.994%, 01/15/20 † USA USD 60,049 0.0171,015 RALI Series Trust, 2007-Q04, A1A, FRN, 0.946%, 05/25/47 † USA USD 59,650 0.0160,000 Toyota Auto Receivables, 2016-C, A3, 1.14%, 08/17/20 USA USD 59,615 0.0161,080 Banc of America Funding Corp., 2004-B, 1A2, FRN, 2.981%, 12/20/34 † USA USD 56,884 0.0155,390 Sofi Professional Loan Program LLC, 2015-A LLC, 1.956%, 03/25/33 USA USD 55,715 0.0155,000 World Financial Network Credit Card Master Trust, 1.76%, 05/17/21 USA USD 55,125 0.0155,000 Capital One Multi-Asset Execution Trust, 2014-A2, 1.26%, 01/15/20 USA USD 55,032 0.0152,600 Sofi Professional Loan Program LLC, 2014-B LLC, 2.006%, 08/25/32 USA USD 52,970 0.0148,576 VOLT XXXI LLC, 2015-NPL2, A1, 144A, FRN, 3.375%, 02/25/55 † USA USD 48,814 0.0147,157 VOLT XXX LLC, 2015-NPL1, A1, 144A, FRN, 3.625%, 10/25/57 † USA USD 47,279 0.0062,646 Lehman XS Trust, 2006-2N, 1A1, FRN, 1.016%, 02/25/46 † USA USD 46,699 0.0045,000 DT Auto Owner Trust, 2014-3A, D, 144A, 4.47%, 11/15/21 USA USD 45,901 0.0039,173 Ford Credit Auto Owner Trust, 2015-A, A3, 1.28%, 09/15/19 USA USD 39,192 0.0051,138 DSLA Mortgage Loan Trust, 2005-AR5, 2A1A, FRN, 1.066%, 09/19/45 † USA USD 38,381 0.0038,491 Ludgate Funding PLC, 2007-1, A2B, Reg S, FRN, 0.00%, 01/01/61 † GBR EUR 38,008 0.0035,000 World Omni Auto Receivables Trust, 2015-A, A3, 1.34%, 05/15/20 USA USD 35,031 0.0044,108 Harborview Mortgage Loan Trust, 2006-7, 2A1A, FRN, 0.936%, 09/19/46 † USA USD 32,013 0.00






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Asset-Backed Securities (continued)30,000 Bank of America Credit Card Trust, 2014-A2, A, FRN, 0.974%, 09/16/19 † USA USD 30,008 0.0030,000 Nissan Master Owner Trust Receivables, 2015-A, A2, 1.44%, 01/15/20 USA USD 30,007 0.0029,822 Nissan Auto Receivables Owner Trust, 2015-A, 1.05%, 10/15/19 USA USD 29,778 0.0030,093 JP Morgan Mortgage Trust, 2005-A1, 6T1, FRN, 3.169%, 02/25/35 † USA USD 29,709 0.0039,028 RALI Series Trust, 2006-QO7, 3A2, FRN, 0.961%, 09/25/46 † USA USD 29,123 0.0026,417 RMAC Securities PLC, 2006-NS1X, A2C, Reg S, FRN, 0.00%, 06/12/44 † GBR EUR 26,128 0.0025,000 Capital One Multi-Asset Execution Trust, 2015-A1, A1, 1.39%, 01/15/21 USA USD 24,992 0.0021,366 CS First Boston Mortgage Securities Corp., 2003-27, 4A4, 5.75%, 11/25/33 USA USD 22,465 0.0022,009 Banc of America Mortgage, FRN, 2.961%, 02/25/35 † USA USD 22,000 0.0025,604 CHL Mortgage Pass-through Trust, 2005-11, FRN, 1.026%, 04/25/35 † USA USD 20,205 0.0020,267 RMAC PLC, 2005-NS3X, A2C, Reg S, FRN, 0.044%, 06/12/43 † GBR EUR 20,152 0.0020,000 Americredit Automobile Receiveables Trust, 2014-3, 1.92%, 11/08/19 USA USD 20,068 0.0020,000 First Investors Auto Owner Trust, 2014-1A, D, 3.28%, 04/15/21 USA USD 20,055 0.0020,000 Americredit Automobile Receiveables Trust, 2014-2, 1.60%, 07/08/19 USA USD 20,021 0.0018,107 CS First Boston Mortgage Securities Corp., 2005-10, 2A1, 5.25%, 11/25/20 USA USD 17,769 0.0016,339 Nissan Auto Receivables Owner Trust, 2014-B, 1.11%, 05/15/19 USA USD 16,328 0.0015,346 CarMax Auto Owner Trust, 2013-1, A4, 0.89%, 08/17/18 USA USD 15,336 0.0014,820 Wells Fargo Mortgage Backed Securities Trust, 2004-O, A1, FRN, 2.995%, 08/25/34 † USA USD 15,066 0.0012,808 National City Mortgage Capital Trust, 2008-1, 2A1, 6.00%, 03/25/38 USA USD 13,366 0.0011,575 Bear Stearns ARM Trust, 2004-6, 2A1, FRN, 3.321%, 09/25/34 † USA USD 10,700 0.0010,684 Hyundai Auto Receivables Trust, 2015-A, A3, 1.05%, 04/15/19 USA USD 10,679 0.0010,424 Americredit Automobile Receiveables Trust, 2014-3, 1.15%, 06/10/19 USA USD 10,420 0.0011,032 CS First Boston Mortgage Securities Corp., 5.50%, 11/25/35 USA USD 10,254 0.00

9,403 Structured ARM Loan Trust, 2004-12, 7A3, FRN, 3.192%, 09/25/34 † USA USD 9,358 0.0010,801 IndyMac Index Mortgage Loan Trust, 2005-AR11, A3, FRN, 2.956%, 08/25/35 † USA USD 8,970 0.00

8,248 BMW Vehicle Owner Trust, 2014-A, A3, 0.97%, 11/26/18 USA USD 8,243 0.007,336 Honda Auto Receivables Owner Trust, 2015-1, A3, 1.05%, 10/15/18 USA USD 7,332 0.006,133 Wells Fargo Mortgage Backed Securities Trust, 2003-M, A1, FRN, 3.00%, 12/25/33 † USA USD 6,147 0.006,125 Americredit Automobile Receiveables Trust, 2013-2, 1.79%, 03/08/19 USA USD 6,133 0.005,692 Santander Drive Auto Receivables Trust, 2014-4, 1.82%, 05/15/19 USA USD 5,697 0.005,088 Structured ARM Loan Trust, FRN, 3.039%, 09/25/34 † USA USD 5,024 0.004,480 Smart, 2013-2US, A4A, 1.18%, 02/14/19 AUS USD 4,471 0.004,032 Honda Auto Receivables Owner Trust, 2014-2, A3, 0.77%, 03/19/18 USA USD 4,028 0.003,845 Ford Credit Auto Owner Trust, 2014-A, A3, 0.79%, 05/15/18 USA USD 3,844 0.002,588 Honda Auto Receivables Owner Trust, 2014-4, A3, 0.99%, 09/17/18 USA USD 2,586 0.002,521 John Deere Owner Trust, 2014-A, A3, 0.92%, 04/16/18 USA USD 2,520 0.002,303 Americredit Automobile Receiveables Trust, 2013-4, 1.66%, 09/10/18 USA USD 2,303 0.001,852 Americredit Automobile Receiveables Trust, 2012-5, 1.69%, 11/08/18 USA USD 1,852 0.001,646 CAM Mortgage LLC, 2015-1, A, 144A, 3.50%, 07/15/64 USA USD 1,650 0.00

643 CarMax Auto Owner Trust, 2013-4, A3, 0.80%, 07/16/18 USA USD 643 0.00

23,993,953 2.30

Corporate Bonds23,161,142 American Media Inc., sub. note, 144A, zero cpn., 03/01/22 USA USD 16,328,568 1.57

8,766,806 iPayment Inc., second lien, 144A, 9.50%, 12/15/19 USA USD 9,029,810 0.879,591,000 Resolute Forest Products Inc., senior bond, 5.875%, 05/15/23 USA USD 8,679,855 0.836,794,000 AK Steel Corp., senior note, 7.625%, 05/15/20 USA USD 6,963,850 0.677,774,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 6,957,730 0.676,154,000 Frontier Communications Corp., senior note, 11.00%, 09/15/25 USA USD 6,377,083 0.615,832,000 Everi Payments Inc., senior note, 10.00%, 01/15/22 USA USD 5,802,840 0.564,864,000 AK Steel Corp., senior note, 7.625%, 10/01/21 USA USD 5,259,200 0.504,779,000 Time Inc., senior note, 144A, 5.75%, 04/15/22 USA USD 4,970,160 0.484,825,000 Navistar International Corp., senior bond, 8.25%, 11/01/21 USA USD 4,897,375 0.474,135,000 Postmedia Network Inc., senior note, 144A, PIK, 10.25%, 07/15/23 ‡ CAN USD 4,781,094 0.464,240,000 Bombardier Inc., senior note, 144A, 8.75%, 12/01/21 CAN USD 4,510,300 0.434,211,000 Engility Corp., senior note, 144A, 8.875%, 09/01/24 USA USD 4,426,814 0.423,700,000 Yamaguchi Financial Group Inc., cvt., senior note, Reg S, zero cpn., 12/20/18 JPN USD 4,181,000 0.404,731,000 Opal Acquisition Inc., senior note, 144A, 8.875%, 12/15/21 USA USD 4,068,660 0.393,471,000 Lee Enterprises Inc., senior secured note, first lien, 144A, 9.50%, 03/15/22 USA USD 3,696,615 0.354,049,000 The McClatchy Co., senior bond, 6.875%, 03/15/29 USA USD 3,436,589 0.333,604,000 RR Donnelley & Sons Co., senior bond, 6.00%, 04/01/24 USA USD 3,414,790 0.333,562,000 Avaya Inc., senior secured note, 144A, 7.00%, 04/01/19 USA USD 3,134,560 0.302,701,671 American Media Inc., secured note, second lien, 144A, 5.50%, 09/01/21 USA USD 2,664,523 0.262,489,000 Petrobras Global Finance BV, senior note, 4.875%, 03/17/20 BRA USD 2,467,097 0.242,407,000 Ship Finance International Ltd., cvt., senior note, 5.75%, 10/15/21 NOR USD 2,417,531 0.232,330,000 Ares Capital Corp., cvt., senior note, 4.75%, 01/15/18 USA USD 2,396,988 0.232,191,000 Altegrity Inc., senior note, first lien, 144A, 9.50%, 07/01/19 USA USD 2,262,208 0.221,420,000 Advanced Micro Devices Inc., cvt., senior note, 2.125%, 09/01/26 USA USD 2,242,713 0.222,133,000 Universal Hospital Services Inc., secured note, second lien, 7.625%, 08/15/20 USA USD 2,122,335 0.201,967,000 AK Steel Corp., senior bond, 8.375%, 04/01/22 USA USD 2,078,873 0.202,000,000 Yamagata Bank Ltd., cvt., senior note, zero cpn., 04/22/19 JPN USD 2,045,000 0.202,342,000 Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note, 6.50%,

04/15/21 USA USD 1,996,555 0.191,671,000 DISH Network Corp., cvt., senior bond, 144A, 3.375%, 08/15/26 USA USD 1,910,162 0.181,860,000 LinkedIn Corp., cvt., senior note, 0.50%, 11/01/19 USA USD 1,861,163 0.184,294,000 Linn Energy LLC/Finance Corp., senior bond, 8.625%, 04/15/20 * USA USD 1,857,155 0.181,800,000 DP World Ltd., cvt., senior note, Reg S, 1.75%, 06/19/24 ARE USD 1,777,950 0.171,697,000 Toll Brothers Finance Corp., cvt., senior bond, 0.50%, 09/15/32 USA USD 1,677,909 0.161,525,000 WhiteWave Foods Co., senior note, 5.375%, 10/01/22 USA USD 1,675,594 0.161,728,000 Kindred Healthcare Inc., senior note, 8.75%, 01/15/23 USA USD 1,622,160 0.16






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Corporate Bonds (continued)1,600,000 Cahaya Captial Ltd., cvt., senior note, Reg S, zero cpn., 09/18/21 MYS USD 1,537,200 0.152,044,000 GenOn Energy Inc., senior note, 9.875%, 10/15/20 USA USD 1,400,140 0.131,280,000 RSP Permian Inc., senior note, 6.625%, 10/01/22 USA USD 1,360,000 0.131,360,000 Petrobras Global Finance BV, senior note, 3.00%, 01/15/19 BRA USD 1,328,992 0.131,239,000 TerraForm Global Operating LLC, senior note, 144A, 13.75%, 08/15/22 USA USD 1,328,828 0.131,344,000 Aegean Marine Petroleum Network Inc., cvt., senior note, 144A, 4.25%, 12/15/21 GRC USD 1,314,600 0.131,270,000 Nuance Communications Inc., cvt., senior note, 2.75%, 11/01/31 USA USD 1,281,906 0.121,226,000 Viking Cruises Ltd., senior note, 144A, 8.50%, 10/15/22 USA USD 1,276,573 0.121,169,000 The McClatchy Co., senior secured note, first lien, 9.00%, 12/15/22 USA USD 1,250,830 0.121,145,000 Chesapeake Energy Corp., cvt., senior note, 144A, 5.50%, 09/15/26 USA USD 1,245,188 0.121,280,000 Williams Partners LP, senior bond, 5.10%, 09/15/45 USA USD 1,218,819 0.121,157,000 Redwood Trust Inc., cvt., 4.625%, 04/15/18 USA USD 1,160,616 0.111,093,000 Forest City Enterprises Inc., cvt., senior note, A, 3.625%, 08/15/20 USA USD 1,139,453 0.111,470,000 Element Financial Corp., cvt., sub. note, 144A, 4.25%, 06/30/20 CAN CAD 1,129,885 0.111,040,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured bond, first lien,

144A, 6.02%, 06/15/26 USA USD 1,127,167 0.111,058,000 Frontier Communications Corp., senior note, 10.50%, 09/15/22 USA USD 1,116,243 0.111,440,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.875%, 05/15/23 USA USD 1,094,400 0.11

969,000 Cemex SAB de CV, cvt., sub. note, 3.75%, 03/15/18 MEX USD 1,091,942 0.101,054,000 Meritage Homes Corp., cvt., senior bond, 1.875%, 09/15/32 USA USD 1,051,365 0.101,136,000 DHT Holdings Inc., cvt., senior note, 4.50%, 10/01/19 USA USD 1,048,670 0.101,000,000 The Oita Bank Ltd., cvt., senior note, Reg S, zero cpn., 12/18/19 JPN USD 1,045,000 0.10

971,000 Cemex SAB de CV, cvt., sub. note, 3.72%, 03/15/20 MEX USD 1,042,611 0.10980,000 Open Text Corp., senior bond, 144A, 5.875%, 06/01/26 CAN USD 1,036,350 0.10

2,597,918 Petroleos de Venezuela SA, senior bond, Reg S, 6.00%, 11/15/26 VEN USD 1,006,693 0.10985,000 Clear Channel Worldwide Holdings Inc., senior sub. note, 7.625%, 03/15/20 USA USD 988,073 0.09973,000 Petrobras Global Finance BV, senior bond, 5.75%, 01/20/20 BRA USD 987,595 0.09914,000 Petrobras Global Finance BV, senior note, 8.375%, 05/23/21 BRA USD 987,120 0.09

1,000,000 Hyundai Heavy Industries Co. Ltd., cvt., senior note, Reg S, zero cpn., 06/29/20 KOR USD 961,250 0.09930,000 Continental Resources Inc., senior bond, 5.00%, 09/15/22 USA USD 942,220 0.09

1,001,000 Guitar Center Inc., senior secured note, 144A, 6.50%, 04/15/19 USA USD 913,413 0.09890,000 Petrobras Global Finance BV, senior note, 5.375%, 01/27/21 BRA USD 872,645 0.08870,000 Santander Holdings USA Inc./PA, senior note, 4.50%, 07/17/25 USA USD 864,967 0.08805,000 Lucent Technologies Inc., senior bond, 6.45%, 03/15/29 FRA USD 843,238 0.08388,000 AK Steel Corp., cvt., senior note, 5.00%, 11/15/19 USA USD 803,888 0.08834,000 Iconix Brand Group Inc., cvt., senior sub. note, 1.50%, 03/15/18 USA USD 788,130 0.08900,000 Amtrust Financial Services Inc., cvt., senior note, 2.75%, 12/15/44 USA USD 772,313 0.07753,000 Petroleos Mexicanos, senior note, Reg S, 1.875%, 04/21/22 MEX EUR 764,770 0.07808,000 CalAtlantic Group Inc., cvt., senior note, 0.25%, 06/01/19 USA USD 756,490 0.07738,000 Ensco Jersey Finance Ltd., cvt., senior note, 144A, 3.00%, 01/31/24 USA USD 754,605 0.07673,000 CSG Systems International Inc., cvt., senior bond, 144A, 4.25%, 03/15/36 USA USD 754,181 0.07725,000 NGL Energy Partners LP/NGL Energy Finance Corp., senior note, 144A, 7.50%,

11/01/23 USA USD 752,188 0.07874,000 The Fresh Market Inc., senior secured note, first lien, 144A, 9.75%, 05/01/23 USA USD 749,455 0.07735,000 Whiting Petroleum Corp., senior note, 5.00%, 03/15/19 USA USD 741,549 0.07650,000 Enel SpA, sub. note, 144A, FRN, 8.75%, 09/24/73 † ITA USD 741,000 0.07755,000 RR Donnelley & Sons Co., senior note, 6.50%, 11/15/23 USA USD 738,956 0.07715,000 Rice Energy Inc., senior note, 6.25%, 05/01/22 USA USD 738,238 0.07734,000 American Realty Capital Properties Inc., cvt., 3.00%, 08/01/18 USA USD 734,000 0.07731,000 Blucora Inc., cvt., senior note, 4.25%, 04/01/19 USA USD 731,000 0.07641,000 Colony Starwood Homes, cvt., 3.00%, 07/01/19 USA USD 701,895 0.07680,000 MPLX LP, senior note, 4.875%, 12/01/24 USA USD 700,492 0.07588,000 Green Plains Inc., cvt., senior note, 144A, 4.125%, 09/01/22 USA USD 698,985 0.07544,000 Wright Medical Group NV, cvt., senior note, 144A, 2.25%, 11/15/21 USA USD 681,020 0.07798,000 Innoviva Inc., cvt., sub. note, 2.125%, 01/15/23 USA USD 680,295 0.07

1,585,000 Linn Energy LLC/Finance Corp., senior bond, 7.75%, 02/01/21 * USA USD 673,625 0.06516,000 Nuvasive Inc., cvt., senior note, 144A, 2.25%, 03/15/21 USA USD 657,578 0.06

1,687,425 Petroleos de Venezuela SA, senior note, Reg S, 6.00%, 05/16/24 VEN USD 653,877 0.06618,000 Cornerstone OnDemand Inc., cvt., senior note, 1.50%, 07/01/18 USA USD 645,038 0.06708,000 Harland Clarke Holdings Corp., senior note, 144A, 9.25%, 03/01/21 USA USD 625,695 0.06809,000 Valeant Pharmaceuticals International Inc., senior bond, 144A, 6.125%, 04/15/25 USA USD 610,795 0.06568,000 Live Nation Entertainment Inc., cvt., senior note, 2.50%, 05/15/19 USA USD 608,115 0.06718,000 Intelsat Jackson Holdings SA, senior note, 7.25%, 04/01/19 LUX USD 606,710 0.06589,000 ROC Finance LLC/ROC Finance 1 Corp., senior secured note, first lien, 144A, 6.75%,

11/15/21 USA USD 597,835 0.06492,000 BroadSoft Inc., cvt., 1.00%, 09/01/22 USA USD 596,858 0.06728,000 Element Financial Corp., cvt., sub. note, 144A, 5.125%, 06/30/19 CAN CAD 584,097 0.06722,000 PDL BioPharma Inc., cvt., senior note, 2.75%, 12/01/21 USA USD 583,466 0.06570,000 Meccanica Holdings USA Inc., senior bond, 144A, 6.25%, 01/15/40 ITA USD 581,400 0.06575,000 Cowen Group Inc., cvt., senior note, 3.00%, 03/15/19 USA USD 576,438 0.06630,000 MEG Energy Corp., senior bond, 144A, 7.00%, 03/31/24 CAN USD 573,300 0.06555,000 Oasis Petroleum Inc., senior note, 6.875%, 03/15/22 USA USD 571,650 0.06526,000 RTI International Metals Inc., cvt., senior note, 1.625%, 10/15/19 USA USD 546,711 0.05550,000 Devon Energy Corp., senior bond, 5.00%, 06/15/45 USA USD 541,303 0.05530,000 Donnelley Financial Solutions Inc., senior note, 144A, 8.25%, 10/15/24 USA USD 540,600 0.05577,000 Viking Cruises Ltd., senior bond, 144A, 6.25%, 05/15/25 USA USD 539,495 0.05546,000 Aerojet Rocketdyne Holdings Inc., cvt., senior note, 144A, 2.25%, 12/15/23 USA USD 534,398 0.05515,000 Callon Petroleum Co., senior note, 144A, 6.125%, 10/01/24 USA USD 533,025 0.05485,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 525,861 0.05525,000 Hilcorp Energy I LP/Hilcorp Finance Co., senior bond, 144A, 5.00%, 12/01/24 USA USD 523,688 0.05






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Corporate Bonds (continued)485,000 Targa Resources Partners LP/Targa Resources Finance Corp., senior note, 6.75%,

03/15/24 USA USD 522,588 0.05510,000 Mohegan Tribal Gaming Authority, senior note, 144A, 7.875%, 10/15/24 USA USD 522,113 0.05580,000 Baytex Energy Corp., senior note, 144A, 5.625%, 06/01/24 CAN USD 514,750 0.05540,000 SM Energy Co., senior note, 5.00%, 01/15/24 USA USD 511,650 0.05485,000 Eclipse Resources Corp., senior note, 8.875%, 07/15/23 USA USD 508,644 0.05475,000 Williams Partners LP, senior note, 6.30%, 04/15/40 USA USD 507,809 0.05576,000 Linn Energy LLC/Finance Corp., senior secured note, second lien, 144A, 12.00%,

12/15/20 * USA USD 505,440 0.05478,000 GTH Finance BV, senior note, Reg S, 6.25%, 04/26/20 NLD USD 502,339 0.05515,000 Energy Transfer Partners LP, senior bond, 5.15%, 03/15/45 USA USD 494,829 0.05480,000 Shutterfly Inc., cvt., 0.25%, 05/15/18 USA USD 488,100 0.05473,000 Zillow Group Inc., cvt., senior bond, 144A, 2.00%, 12/01/21 USA USD 488,077 0.05485,000 Cosan Luxembourg SA, senior bond, 144A, 7.00%, 01/20/27 BRA USD 486,213 0.05465,000 Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., senior note, 144A, 7.875%,

12/15/24 USA USD 483,600 0.05465,000 United Technologies Corp., FRN, 1.236%, 11/01/19 † USA USD 466,369 0.04442,000 Matador Resources Co., senior note, 6.875%, 04/15/23 USA USD 466,310 0.04480,000 Kinder Morgan Energy Partners LP, senior bond, 5.00%, 03/01/43 USA USD 463,681 0.04460,000 JPMorgan Chase Bank NA, senior note, FRN, 1.588%, 09/23/19 † USA USD 460,524 0.04450,000 Caterpillar Financial Services Corp., senior note, FRN, 1.62%, 02/23/18 † USA USD 452,323 0.04450,000 Quicken Loans Inc., senior note, 144A, 5.75%, 05/01/25 USA USD 439,875 0.04470,000 BRF GmbH, senior note, 144A, 4.35%, 09/29/26 BRA USD 435,925 0.04455,000 PulteGroup Inc., senior bond, 5.00%, 01/15/27 USA USD 433,956 0.04460,000 Noble Holding International Ltd., senior note, 7.75%, 01/15/24 GBR USD 433,826 0.04469,000 Petroleos Mexicanos, senior note, 4.25%, 01/15/25 MEX USD 432,371 0.04427,000 RR Donnelley & Sons Co., senior note, 7.00%, 02/15/22 USA USD 431,270 0.04400,000 Fugro NV, cvt., 4.00%, 10/26/21 NLD EUR 428,429 0.04413,000 Petroleos Mexicanos, senior note, Reg S, 5.375%, 03/13/22 MEX USD 423,420 0.04301,000 Wabash National Corp., cvt., senior note, 3.375%, 05/01/18 USA USD 423,093 0.04404,000 Wright Medical Group Inc., cvt., senior note, 2.00%, 02/15/20 USA USD 422,938 0.04329,000 Trinity Industries Inc., cvt., sub. note, 3.875%, 06/01/36 USA USD 422,559 0.04435,000 Aceto Corp., cvt., senior note, 2.00%, 11/01/20 USA USD 420,047 0.04382,000 Renewable Energy Group Inc., cvt., 4.00%, 06/15/36 USA USD 412,560 0.04400,000 Cemex SAB de CV, senior secured bond, first lien, 144A, 6.125%, 05/05/25 MEX USD 410,000 0.04442,000 Mexico City Airport Trust, Reg S, 5.50%, 10/31/46 MEX USD 398,905 0.04375,000 Crestwood Midstream Partners LP/Crestwood Midstrean Finance Corp., senior note,

6.125%, 03/01/22 USA USD 386,250 0.04358,000 Petroleos Mexicanos, senior bond, Reg S, 6.875%, 08/04/26 MEX USD 378,585 0.04381,000 Navistar International Corp., cvt., senior sub. note, 4.75%, 04/15/19 USA USD 378,143 0.04278,000 Carriage Services Inc., cvt., sub. note, 2.75%, 03/15/21 USA USD 375,126 0.04349,000 Inphi Corp., cvt., senior note, 144A, 0.75%, 09/01/21 USA USD 373,430 0.04

40,000,000 Nipro Corp., cvt., senior note, Reg S, zero cpn., 01/29/21 JPN JPY 373,091 0.04360,000 Petroleos Mexicanos, senior note, Reg S, FRN, 4.606%, 03/11/22 † MEX USD 371,700 0.04355,000 Halcon Resources Corp., secured note, second lien, 144A, 8.625%, 02/01/20 USA USD 370,975 0.04394,000 Insulet Corp., cvt., senior note, 144A, 1.25%, 09/15/21 USA USD 366,913 0.04442,000 GenOn Americas Generation LLC, senior bond, 9.125%, 05/01/31 USA USD 364,650 0.04351,000 Clovis Oncology Inc., cvt., senior note, 2.50%, 09/15/21 USA USD 362,408 0.03584,000 Intelsat Connect Finance, senior note, 144A, SA, 12.50%, 04/01/22 LUX USD 362,080 0.03294,000 Hologic Inc., cvt., senior bond, zero cpn., 12/15/43 USA USD 361,069 0.03323,000 Forest City Enterprises Inc., cvt., senior note, 4.25%, 08/15/18 USA USD 354,089 0.03301,000 Knowles Corp., cvt., senior note, 144A, 3.25%, 11/01/21 USA USD 350,665 0.03315,000 Petrobras Global Finance BV, senior note, Reg S, 3.25%, 04/01/19 BRA EUR 339,715 0.03360,000 Continental Resources Inc., senior bond, 3.80%, 06/01/24 USA USD 333,900 0.03345,000 Kinder Morgan Energy Partners LP, senior note, 5.00%, 08/15/42 USA USD 330,308 0.03325,000 Transocean Proteus Ltd., senior note, 144A, 6.25%, 12/01/24 USA USD 329,674 0.03258,000 The Greenbrier Cos. Inc., cvt., senior note, 3.50%, 04/01/18 USA USD 324,274 0.03284,000 WebMD Health Corp., cvt., 1.50%, 12/01/20 USA USD 321,808 0.03356,000 The McClatchy Co., senior bond, 7.15%, 11/01/27 USA USD 315,060 0.03441,000 GenOn Energy Inc., senior note, 9.50%, 10/15/18 USA USD 313,937 0.03282,000 Starwood Property Trust Inc., cvt., senior note, 4.55%, 03/01/18 USA USD 308,614 0.03305,000 The Bank of Tokyo-Mitsubishi UFJ Ltd., senior note, 144A, FRN, 1.979%, 09/14/18 † JPN USD 306,473 0.03355,000 Enable Midstream Partners LP, senior bond, 5.00%, 05/15/44 USA USD 305,452 0.03295,000 Amicus Therapeutics Inc., cvt., senior note, 144A, 3.00%, 12/15/23 USA USD 300,716 0.03265,000 Cemex SAB de CV, senior secured bond, 144A, 7.75%, 04/16/26 MEX USD 294,150 0.03290,000 Communications Sales & Leasing Inc., senior note, 144A, 7.125%, 12/15/24 USA USD 293,625 0.03199,000 Green Plains Inc., cvt., senior note, 3.25%, 10/01/18 USA USD 287,306 0.03275,000 Concho Resources Inc., senior bond, 5.50%, 04/01/23 USA USD 286,358 0.03516,000 FXCM Inc., cvt., senior note, 2.25%, 06/15/18 USA USD 281,220 0.03295,000 Marathon Oil Corp., senior bond, 5.20%, 06/01/45 USA USD 278,556 0.03265,000 DISH DBS Corp., senior note, 5.875%, 11/15/24 USA USD 273,679 0.03283,000 The Medicines Co., cvt., senior note, 144A, 2.75%, 07/15/23 USA USD 273,626 0.03270,000 Siemens Financieringsmaatschappij NV, 1.21%, 05/25/18 DEU USD 270,182 0.03365,000 Bonanza Creek Energy Inc., senior note, 5.75%, 02/01/23 * USA USD 268,275 0.03352,000 Ascent Capital Group Inc., cvt., senior note, 4.00%, 07/15/20 USA USD 267,520 0.03

30,000,000 MIRAIT Holdings Corp., cvt., senior note, Reg S, zero cpn., 12/30/21 JPN JPY 264,385 0.03330,000 Impax Laboratories Inc., cvt., senior note, 2.00%, 06/15/22 USA USD 262,144 0.03175,000 Punch Taverns Finance PLC, 1.5 lien, 144A, 7.274%, 10/15/26 GBR GBP 260,837 0.03218,000 HealthSouth Corp., cvt., senior bond, 2.00%, 12/01/43 USA USD 259,148 0.03276,000 Vitamin Shoppe Inc., cvt., senior note, 2.25%, 12/01/20 USA USD 255,818 0.02






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Corporate Bonds (continued)251,000 RWT Holdings Inc., cvt., senior note, 5.625%, 11/15/19 USA USD 254,138 0.02240,000 Parsley Energy LLC/Parsley Finance Corp., senior note, 144A, 6.25%, 06/01/24 USA USD 253,752 0.02250,000 Capital One NA, senior note, FRN, 2.056%, 08/17/18 † USA USD 252,738 0.02220,000 YPF SA, senior note, 144A, FRN, 26.333%, 07/07/20 † ARG USD 251,900 0.02250,000 Corning Inc., senior note, 1.50%, 05/08/18 USA USD 249,309 0.02220,000 DISH DBS Corp., 7.75%, 07/01/26 USA USD 248,600 0.02199,000 American Residential Properties OP LP, cvt., senior note, 144A, 3.25%, 11/15/18 USA USD 247,506 0.02250,000 Rose Rock Midstream LP/Rose Rock Finance Corp., 5.625%, 11/15/23 USA USD 245,000 0.02250,000 Ctrip.com International Ltd., cvt., senior note, 144A, 1.25%, 09/15/22 CHN USD 241,875 0.02225,000 Sabine Pass Liquefaction LLC, senior secured note, first lien, 5.625%, 03/01/25 USA USD 241,594 0.02222,000 Weatherford International Ltd., cvt., senior note, 5.875%, 07/01/21 USA USD 241,425 0.02230,000 Calpine Corp., senior secured bond, first lien, 144A, 5.875%, 01/15/24 USA USD 240,925 0.02230,000 First Data Corp., senior secured note, first lien, 144A, 5.375%, 08/15/23 USA USD 239,200 0.02256,000 Tesla Motors Inc., cvt., senior note, 0.25%, 03/01/19 USA USD 238,720 0.02215,000 Western Digital Corp., senior secured note, 144A, 7.375%, 04/01/23 USA USD 237,038 0.02235,000 Parsley Energy LLC/Parsley Finance Corp., senior note, 144A, 5.375%, 01/15/25 USA USD 236,974 0.02235,000 Toyota Motor Credit Corp., senior note, FRN, 1.322%, 10/18/19 † USA USD 236,253 0.02225,000 Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, senior secured bond,

144A, 5.50%, 01/15/23 DEU USD 235,125 0.02220,000 Virgin Media Secured Finance PLC, 5.25%, 01/15/21 GBR USD 232,925 0.02230,000 Morgan Stanley, senior note, FRN, 2.162%, 04/25/18 † USA USD 232,452 0.02230,000 Tenet Healthcare Corp., 4.75%, 06/01/20 USA USD 232,300 0.02230,000 Lowe’s Companies Inc., senior note, FRN, 1.559%, 09/14/18 † USA USD 231,831 0.02230,000 Bank of America Corp., senior note, FRN, 2.066%, 03/22/18 † USA USD 231,590 0.02230,000 JPMorgan Chase & Co., senior note, FRN, 1.782%, 01/25/18 † USA USD 231,539 0.02230,000 American Express Credit Corp., 1.661%, 11/05/18 USA USD 231,531 0.02230,000 Berkshire Hathaway Finance Corp., FRN, 1.498%, 03/07/18 † USA USD 231,293 0.02230,000 Merck & Co. Inc., senior note, FRN, 1.269%, 05/18/18 † USA USD 230,940 0.02230,000 PepsiCo Inc., FRN, 1.134%, 10/04/19 † USA USD 230,346 0.02210,000 HCA Inc., senior secured note, 6.50%, 02/15/20 USA USD 230,265 0.02225,000 Ionis Pharmaceuticals Inc., cvt., senior note, 1.00%, 11/15/21 USA USD 227,391 0.02230,000 Ultrapar International SA, senior note, 144A, 5.25%, 10/06/26 BRA USD 226,527 0.02

3,530,000 Banco Hipotecario SA, senior note, 144A, FRN, 24.729%, 01/12/20 † ARG ARS 224,729 0.02215,000 Concho Resources Inc., senior bond, 5.50%, 10/01/22 USA USD 223,869 0.02207,000 Sucampo Pharmaceuticals Inc., cvt., 144A, 3.25%, 12/15/21 USA USD 221,490 0.02225,000 Ziggo Secured Finance BV, secured bond, 144A, 5.50%, 01/15/27 NLD USD 219,893 0.02220,000 NGL Energy Partners LP/NGL Energy Finance Corp., senior note, 5.125%, 07/15/19 USA USD 219,450 0.02205,000 Energy Transfer Partners LP, senior bond, 6.125%, 12/15/45 USA USD 218,488 0.02215,000 Ally Financial Inc., sub. note, 5.75%, 11/20/25 USA USD 215,269 0.02210,000 JBS USA LLC/Finance Inc., senior note, 144A, 5.75%, 06/15/25 USA USD 213,675 0.02350,000 Liberty Interactive LLC, cvt., senior bond, 4.00%, 11/15/29 USA USD 210,000 0.02205,000 AmeriGas Partners LP/AmeriGas Finance Corp., senior note, 5.50%, 05/20/25 USA USD 207,819 0.02215,000 Targa Resources Partners LP/Targa Resources Finance Corp., senior bond, 4.25%,

11/15/23 USA USD 206,669 0.02225,000 EnLink Midstream Partners LP, senior bond, 5.05%, 04/01/45 USA USD 204,341 0.02200,000 AYC Finance Ltd., cvt., senior note, Reg S, 0.50%, 05/02/19 PHL USD 202,250 0.02200,000 Cisco Systems Inc., FRN, 1.273%, 06/15/18 † USA USD 200,481 0.02200,000 Bat International Finance PLC, FRN, 1.473%, 06/15/18 † GBR USD 200,081 0.02195,000 MPLX LP, senior note, 4.50%, 07/15/23 USA USD 198,117 0.02235,000 Noble Holding International Ltd., senior bond, 8.20%, 04/01/45 GBR USD 196,813 0.02167,000 SM Energy Co., cvt., senior note, 1.50%, 07/01/21 USA USD 194,033 0.02200,000 Cosmos Boom Investment Ltd., cvt., senior note, Reg S, 0.50%, 06/23/20 CHN USD 194,000 0.02190,000 SM Energy Co., senior note, 6.125%, 11/15/22 USA USD 193,325 0.02130,000 Altra Industrial Motion Corp., cvt., senior bond, 2.75%, 03/01/31 USA USD 186,144 0.02190,000 Brookdale Senior Living Inc., cvt., senior note, 2.75%, 06/15/18 USA USD 185,606 0.02180,000 Chesapeake Energy Corp., senior note, 144A, 8.00%, 01/15/25 USA USD 184,275 0.02175,000 Ally Financial Inc., senior note, 4.25%, 04/15/21 USA USD 177,078 0.02195,000 Time Warner Cable Inc., senior bond, 4.50%, 09/15/42 USA USD 176,927 0.02114,000 Punch Taverns Finance PLC, secured bond, 1.5 lien, 144A, 7.32%, 10/15/25 GBR GBP 169,913 0.02183,000 Twitter Inc., cvt., senior note, 1.00%, 09/15/21 USA USD 169,275 0.02171,000 World Wrestling Entertainment Inc., cvt., senior note, 144A, 3.375%, 12/15/23 USA USD 167,794 0.02131,000 Emergent Biosolutions Inc., cvt., senior note, 2.875%, 01/15/21 USA USD 167,516 0.02155,000 Liberty Media Corp., cvt., senior note, 1.375%, 10/15/23 USA USD 167,206 0.02159,000 HudBay Minerals Inc., senior note, 144A, 7.625%, 01/15/25 CAN USD 165,659 0.02195,000 Cox Communications Inc., senior bond, 144A, 4.50%, 06/30/43 USA USD 165,422 0.02159,000 HudBay Minerals Inc., senior note, 144A, 7.25%, 01/15/23 CAN USD 164,963 0.02172,000 Ladder Capital Finance Holdings LLC/Corp., 5.875%, 08/01/21 USA USD 164,045 0.02165,000 Quidel Corp., cvt., senior note, 3.25%, 12/15/20 USA USD 163,350 0.02155,000 Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance Inc., senior

note, 144A, 7.875%, 10/01/22 USA USD 160,813 0.02141,000 Proofpoint Inc., cvt., 0.75%, 06/15/20 USA USD 159,947 0.02210,000 Valeant Pharmaceuticals International Inc., 6.125%, 04/15/25 CAN USD 158,550 0.02150,000 Cablevision SA, senior note, 144A, 6.50%, 06/15/21 ARG USD 152,813 0.01170,000 MEG Energy Corp., senior bond, 144A, 6.375%, 01/30/23 CAN USD 152,150 0.01145,000 Oasis Petroleum Inc., senior bond, 6.875%, 01/15/23 USA USD 149,350 0.01131,000 Cypress Semiconductor Corp., cvt., 144A, 4.50%, 01/15/22 USA USD 147,949 0.01146,000 John Deere Capital Corp., FRN, 1.17%, 01/16/18 † USA USD 146,167 0.01140,000 Alcatel-Lucent USA Inc., senior bond, 6.50%, 01/15/28 FRA USD 145,250 0.01140,000 CalAtlantic Group Inc., cvt., senior bond, 1.25%, 08/01/32 USA USD 144,813 0.01145,000 Williams Partners LP, senior bond, 4.00%, 09/15/25 USA USD 143,443 0.01






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Corporate Bonds (continued)99,000 LGI Homes Inc., cvt., sub. bond, 4.25%, 11/15/19 USA USD 141,570 0.01

140,000 Bellatrix Exploration Ltd., senior note, 144A, 8.50%, 05/15/20 CAN USD 138,250 0.01138,000 Yahoo! Inc., cvt., zero cpn., 12/01/18 USA USD 137,051 0.01144,000 PRA Group Inc., cvt., senior note, 3.00%, 08/01/20 USA USD 136,350 0.01135,000 General Electric Co., senior note, FRN, 1.556%, 04/02/18 † USA USD 135,998 0.01221,000 PTC Therapeutics Inc., cvt., senior note, 3.00%, 08/15/22 USA USD 133,843 0.01125,000 Viavi Solutions Inc., cvt., senior bond, 0.625%, 08/15/33 USA USD 129,844 0.01297,000 Linn Energy LLC/Finance Corp., senior note, 6.50%, 05/15/19 * USA USD 126,968 0.01130,000 EnLink Midstream Partners LP, senior bond, 5.60%, 04/01/44 USA USD 125,419 0.01115,000 Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower Inc., senior note,

144A, 6.125%, 12/01/24 USA USD 120,031 0.01115,000 PDC Energy Inc., senior note, 144A 6.125%, 09/15/24 USA USD 118,163 0.01130,000 Baytex Energy Corp., senior note, 144A, 5.125%, 06/01/21 CAN USD 117,975 0.01112,000 Aegean Marine Petroleum Network Inc., cvt., senior note, 4.00%, 11/01/18 GRC USD 116,690 0.01155,000 Bonanza Creek Energy Inc., senior note, 6.75%, 04/15/21 * USA USD 116,250 0.01110,000 Kinder Morgan Energy Partners LP, senior bond, 5.625%, 09/01/41 USA USD 110,667 0.01165,000 Noble Holding International Ltd., senior bond, 5.25%, 03/15/42 USA USD 109,725 0.01115,000 Twitter Inc., cvt., senior note, 0.25%, 09/15/19 USA USD 108,100 0.01109,000 Huron Consulting Group Inc., cvt., senior note, 1.25%, 10/01/19 USA USD 107,024 0.01100,000 Rallye SA, cvt., 5.25%, 02/01/22 FRA EUR 105,905 0.01110,000 Kinder Morgan Energy Partners LP, senior bond, 4.70%, 11/01/42 USA USD 102,673 0.01100,000 Whiting Petroleum Corp., senior note, 5.75%, 03/15/21 USA USD 100,084 0.01110,000 Cox Communications Inc., senior bond, 144A, 4.70%, 12/15/42 USA USD 95,819 0.01

95,000 BP Capital Markets PLC, senior note, FRN, 1.327%, 02/13/18 † GBR USD 95,109 0.0190,000 EnLink Midstream Partners LP, senior bond, 4.85%, 07/15/26 USA USD 90,831 0.0185,000 DISH DBS Corp., senior note, 5.875%, 07/15/22 USA USD 89,675 0.0185,000 Antero Resources Corp., senior note, 5.625%, 06/01/23 USA USD 87,444 0.01

300,000 BRF SA, senior note, 144A, 7.75%, 05/22/18 BRA BRL 86,644 0.0196,000 RR Donnelley & Sons Co., senior bond, 6.625%, 04/15/29 USA USD 84,960 0.0180,000 Embraer Overseas Ltd., senior note, 144A,. 5.696%, 09/16/23 BRA USD 84,000 0.0186,000 Allscripts Healthcare Solutions Inc., cvt., senior note, 1.25%, 07/01/20 USA USD 80,840 0.0180,000 Embraer Netherlands Finance BV, senior note, 5.05%, 06/15/25 BRA USD 79,920 0.01

180,000 Solazyme Inc., cvt., senior sub. note, 5.00%, 10/01/19 USA USD 78,863 0.0170,000 Liberty Media Corp., cvt., senior bond, 144A, 2.25%, 09/30/46 USA USD 74,113 0.0197,000 California Resources Corp., senior bond, 6.00%, 11/15/24 USA USD 71,295 0.0165,000 Petrobras Global Finance BV, senior note, 8.75%, 05/23/26 BRA USD 70,281 0.0165,000 Harland Clarke Holdings Corp., first lien, 144A 6.875%, 03/01/20 USA USD 63,050 0.0160,000 Rialto Holdings LLC/Rialto Corp., senior note, 144A, 7.00%, 12/01/18 USA USD 61,050 0.0160,000 Starwood Property Trust Inc., senior note, 144A, 5.00%, 12/15/21 USA USD 60,954 0.0162,000 Encore Capital Group Inc., cvt., senior note, 2.875%, 03/15/21 USA USD 54,483 0.0150,000 SM Energy Co., senior bond, 6.50%, 01/01/23 USA USD 51,063 0.0154,000 Intercept Pharmaceuticals Inc., cvt., senior note, 3.25%, 07/01/23 USA USD 48,398 0.0050,000 Evolent Health Inc., cvt., senior note, 144A, 2.00%, 12/01/21 USA USD 48,219 0.0060,000 Petrobras Global Finance BV, senior bond, 5.625%, 05/20/43 BRA USD 44,652 0.0025,000 AMAG Pharmaceuticals Inc., cvt., senior note, 2.50%, 02/15/19 USA USD 35,359 0.0035,000 Ally Financial Inc., senior note, 3.75%, 11/18/19 USA USD 35,237 0.0030,000 SM Energy Co., senior bond, 6.75%, 09/15/26 USA USD 31,050 0.0030,000 MPLX LP, 4.00%, 02/15/25 USA USD 29,174 0.0030,000 CalAmp Corp., cvt., senior note, 1.625%, 05/15/20 USA USD 29,063 0.0025,000 NGL Energy Partners LP/NGL Energy Finance Corp., senior note, 6.875%, 10/15/21 USA USD 25,688 0.0020,000 Canadian Natural Resources Ltd., senior bond, 3.90%, 02/01/25 CAN USD 20,092 0.0020,000 Whiting Petroleum Corp., senior sub. note, 6.50%, 10/01/18 USA USD 19,975 0.0020,000 Continental Resources Inc., senior bond, 4.50%, 04/15/23 USA USD 19,700 0.0020,000 Chesapeake Energy Corp., senior note, 4.875%, 04/15/22 USA USD 18,350 0.0015,000 Choice Hotels International Inc., senior bond, 5.70%, 08/28/20 USA USD 16,238 0.0015,000 SM Energy Co., senior bond, 5.625%, 06/01/25 USA USD 14,550 0.0010,000 Western Refining Logistics LP/WNRL Finance Corp., senior note, 7.50%, 02/15/23 USA USD 10,850 0.0010,000 JBS USA LLC/Finance Inc., senior note, 144A, 7.25%, 06/01/21 USA USD 10,425 0.0010,000 iStar Inc., senior note, 5.00%, 07/01/19 USA USD 10,075 0.00

8,000 California Resources Corp., senior note, 5.50%, 09/15/21 USA USD 6,320 0.003,000 Chesapeake Energy Corp., senior bond, 6.125%, 02/15/21 USA USD 2,940 0.00

261,021,817 25.03

Government and Municipal Bonds1,800,000 Government of Russia, Reg S, 4.75%, 05/27/26 RUS USD 1,846,980 0.181,610,041 Government of Argentina, 7.82%, 12/31/33 ARG EUR 1,642,898 0.16

95,688,000 Government of Russia, 6.40%, 05/27/20 RUS RUB 1,485,461 0.1421,289,241 Government of Argentina, 16.00%, 10/17/23 ARG ARS 1,338,963 0.13

1,782,000 Government of Argentina, 2.285% to 03/31/19, 4.74% thereafter, 12/31/38 ARG EUR 1,050,929 0.10948,000 Government of Ukraine, Reg S, 7.75%, 09/01/19 UKR USD 956,096 0.09865,000 Government of Paraguay, senior note, Reg S, 4.625%, 01/25/23 PRY USD 878,027 0.08738,000 Government of Argentina, Reg S, 5.00%, 01/15/27 ARG EUR 687,351 0.07600,000 Republic of Pakistan, Reg S, 6.75%, 12/03/19 PAK USD 636,271 0.06608,238 Government of Argentina, senior bond, 7.82%, 12/31/33 ARG EUR 625,856 0.06701,000 Government of Iraq, Reg S, 5.80%, 01/15/28 IRQ USD 584,217 0.06560,000 Government of Argentina, senior note, Reg S, 3.875%, 01/15/22 ARG EUR 566,494 0.05455,368 EP Petroecuador via Noble Sovereign Funding I Ltd., Reg S, FRN, 6.627%, 09/24/19 † ECU USD 459,353 0.04

9,000,000 Government of Mexico, M, Senior note, 5.75%, 03/05/26 MEX MXN 385,877 0.045,270,327 Government of Argentina, senior note, 15.50%, 10/17/26 ARG ARS 332,800 0.03

274,000 Republic of Ecuador, senior note, Reg S, 10.75%, 03/28/22 ECU USD 297,975 0.03






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Government and Municipal Bonds (continued)225,000 Province of Buenos Aires, senior note, 144A, 5.75%, 06/15/19 ARG USD 234,889 0.02285,139 Government of Argentina, FRN, 2.26%, 12/31/38 † ARG EUR 169,210 0.02

20,000 Government of the Hellenic Republic, senior bond, Reg S, 3.00% to 02/24/20, 3.65%to 02/24/21, 4.30% thereafter, 02/24/39 GRC EUR 13,238 0.00



14,209,410 1.36

Securities Maturing Within One Year2,700,000 Golar LNG Ltd., cvt., secured note, Reg S, 3.75%, 03/07/17 BMU USD 2,696,625 0.262,000,000 U.S. Treasury Bill, 0.00%, 05/25/17 USA USD 1,995,246 0.191,950,000 U.S. Treasury Bill, 0.00%, 01/05/17 USA USD 1,949,967 0.191,860,895 Government of Argentina, senior note, 8.75%, 06/02/17 ARG USD 1,935,331 0.191,800,000 U.S. Treasury Bill, 0.00%, 03/30/17 USA USD 1,797,876 0.171,800,000 U.S. Treasury Bill, 0.00%, 04/27/17 USA USD 1,796,936 0.171,750,000 U.S. Treasury Bill, 0.00%, 06/22/17 USA USD 1,744,923 0.171,700,000 U.S. Treasury Bill, 0.00%, 07/20/17 USA USD 1,694,040 0.161,700,000 U.S. Treasury Bill, 0.00%, 08/17/17 USA USD 1,692,850 0.161,700,000 U.S. Treasury Bill, 0.00%, 09/14/17 USA USD 1,691,634 0.161,500,000 U.S. Treasury Bill, 0.00%, 02/02/17 USA USD 1,499,480 0.141,400,000 U.S. Treasury Bill, 0.00%, 10/12/17 USA USD 1,391,715 0.13

19,903,533 Letras del Banco Central de la Republica Argentina, Strip, 01/18/17 ARG ARS 1,238,844 0.121,200,000 U.S. Treasury Bill, 0.00%, 03/02/17 USA USD 1,199,082 0.12

637,000 Griffon Corp., cvt., sub. note, 144A, 4.00%, 01/15/17 USA USD 1,123,111 0.11973,000 Colony Starwood Homes, cvt., senior note, 4.50%, 10/15/17 USA USD 1,041,718 0.10

3,300,000 Letra Tesouro Nacional, Strip, 07/01/17 BRA BRL 956,610 0.09177,000,000 Mexico Treasury Bill, 0.00%, 01/05/17 MEX MXN 853,030 0.08

3,450,000 Government of Poland, 4.75%, 04/25/17 POL PLN 832,645 0.08751,000 Starwood Property Trust Inc., cvt., senior note, 3.75%, 10/15/17 USA USD 772,591 0.07

10,438,408 Letras del Banco Central de la Republica Argentina, Strip, 01/11/17 ARG ARS 652,501 0.06560,000 Encore Capital Group Inc., cvt., senior note, 3.00%, 11/27/17 USA USD 602,350 0.06500,000 U.S. Treasury Bill, 0.00%, 01/12/17 USA USD 499,952 0.05437,000 M/I Homes Inc., cvt., senior sub. note, 3.25%, 09/15/17 USA USD 497,634 0.05455,000 The Goldman Sachs Group Inc., senior note, FRN, 1.567%, 06/04/17 † USA USD 455,754 0.04420,000 Aetna Inc., senior note, FRN, 1.601%, 12/08/17 † USA USD 421,506 0.04400,000 Subsea 7 SA, cvt., senior note, Reg S, 1.00%, 10/05/17 GBR USD 398,000 0.04345,000 Bottomline Technologies Inc., cvt., senior note, 1.50%, 12/01/17 USA USD 356,428 0.04350,000 Shell International Finance BV, senior note, FRN, 1.202%, 05/10/17 † NLD USD 350,216 0.03300,000 Bank of America Corp., FRN, 1.392%, 06/05/17 † USA USD 300,346 0.03250,000 Apple Inc., FRN, 0.952%, 05/12/17 † USA USD 250,063 0.02

3,717,593 Letras del Banco Central de la Republica Argentina, Strip, 01/25/17 ARG ARS 230,339 0.02200,000 American Honda Finance Corp., 0.95%, 05/05/17 USA USD 199,818 0.02160,000 American Honda Finance Corp., senior note, FRN, 1.447%, 09/20/17 † USA USD 160,397 0.02100,000 Wells Fargo & Co., senior note, FRN, 1.234%, 06/02/17 † USA USD 100,045 0.01

50,000 Credit Suisse Mortgage Trust, 2015-TOWN A, 144A, FRN, 1.954%, 03/15/17 † USA USD 50,071 0.0125,000 Merck & Co. Inc., senior note, FRN, 1.007%, 02/10/17 † USA USD 25,006 0.0020,000 Chevron Corp., senior note, FRN, 1.076%, 11/15/17 † USA USD 20,005 0.00

1,872 Honda Auto Receivables Owner Trust, 2014-1, 0.67%, 11/21/17 USA USD 1,872 0.00

35,476,557 3.40

TOTAL BONDS 334,701,737 32.09



† Floating Rates are indicated as at December 31, 2016‡ Income may be received in additional securities and/or cash* These Bonds are currently in default






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585,000 Petrobras Global Finance BV, senior note, 4.875%, 03/17/20 BRA USD 579,851 2.36491,340 Petroleos de Venezuela SA, senior bond, Reg S, 6.00%, 11/15/26 VEN USD 190,394 0.78126,000 Petroleos Mexicanos, senior note, Reg S, 1.875%, 04/21/22 MEX EUR 127,970 0.52

72,000 Petrobras Global Finance BV, senior bond, 5.75%, 01/20/20 BRA USD 73,080 0.3058,000 Petroleos Mexicanos, senior note, Reg S, 5.375%, 03/13/22 MEX USD 59,463 0.2441,000 Petroleos Mexicanos, senior note, Reg S, FRN, 4.606%, 03/11/22 † MEX USD 42,333 0.17

1,073,091 4.37

Government and Municipal Bonds441,729 Government of Argentina, 7.82%, 12/31/33 ARG EUR 450,744 1.84200,000 Government of Russia, Reg S, 4.75%, 05/27/26 RUS USD 205,220 0.84

11,000,000 Government of Russia, 6.40%, 05/27/20 RUS RUB 170,764 0.70100,000 Government of Argentina, senior note, Reg S, 3.875%, 01/15/22 ARG EUR 101,160 0.41

17,890 Government of Argentina, senior bond, 7.82%, 12/31/33 ARG EUR 18,408 0.07

946,296 3.86

TOTAL BONDS 2,019,387 8.23





— Franklin K2 Global Macro Opportunities Fund —




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TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESDiversified Telecommunication Services

1,877 CenturyLink Inc. USA USD 44,635 0.08362 Level 3 Communications Inc. USA USD 20,402 0.04

65,037 0.12

Equity Real Estate Investment Trusts (REIT’s)7,027 istar Inc. USA USD 86,924 0.17

Independent Power and Renewable Electricity Producers23,033 NRG Yield Inc., A USA USD 353,787 0.68

1,900 Dynegy Inc., 7.00%, cvt. pfd. USA USD 118,066 0.225,600 TerraForm Power Inc., A USA USD 71,736 0.14

671 Atlantica Yield PLC ESP USD 12,984 0.02

556,573 1.06


RIGHTSPharmaceuticals

26,594 Sanofi, Contingent Value rts., Escrow Account, 12/31/20 FRA USD 10,106 0.02

TOTAL RIGHTS 10,106 0.02



1,500,000 Wachovia Bank Commercial Mortgage Trust, 2007-C30, AJ, FRN, 5.413%, 12/15/43 † USA USD 1,515,649 2.901,250,000 JPMorgan Chase Commercial Mortgage Securities Trust, 2007-LD11, AM, FRN, 5.753%,

06/15/49 † USA USD 1,263,227 2.411,000,000 Merlin Aviation Holdings DAC, 2016-1, A, 144A, FRN, 4.50%, 12/15/32 † USA USD 961,550 1.84

852,268 American Home Mortgage Investment Trust, 2005-4, FRN, 1.056%, 11/25/45 † USA USD 668,010 1.28683,582 Wells Fargo Mortgage Backed Securities Trust, 2004-I, FRN, 3.070%, 07/25/34 † USA USD 657,447 1.26678,459 WaMu Mortgage Pass-Through Certificates, FRN, 1.567%, 08/25/46 † USA USD 582,775 1.11510,944 Avant Loans Funding Trust, 2016-B, A, 144A, 3.92%, 08/15/19 USA USD 513,482 0.98500,000 Dryden 36 Senior Loan Fund, 144A, FRN, 4.637%, 01/15/28 † CYM USD 499,983 0.96473,799 National Collegiate Student Loan Trust, 2007-1, A3, FRN, 1.001%, 07/25/30 † USA USD 459,275 0.88488,920 Impac CMB Trust, 2004-7, M4, FRN, 2.556%, 11/25/34 † USA USD 449,946 0.86578,207 Merrill Lynch Mortgage Investors Trust, MLMI, FRN, 3.081%, 07/25/35 † USA USD 449,015 0.86528,448 RALI Series Trust, 2006-QS10, A4, 5.75%, 08/25/36 USA USD 441,387 0.84484,609 GSR Mortgage Loan Trust, 2004-14, 2A1, FRN, 1.091%, 12/25/34 † USA USD 438,129 0.84531,457 Airspeed Ltd./Cayman Islands, 2007-1X, G1, Reg S, FRN, 0.974%, 06/15/32 † CYM USD 412,543 0.79430,035 BCAP LLC Trust, 2009-RR6, 3A1, FRN, 3.226%, 12/26/37 † USA USD 398,727 0.76519,666 Structured ARM Loan Trust, 3.134%, 09/25/36 USA USD 376,717 0.72374,363 Wells Fargo Mortgage Backed Securities Trust, 2005-AR15, FRN, 2.983%, 09/25/35 † USA USD 356,062 0.68468,867 Banc of America Funding Corp., 2007-1, TA1A, FRN, 0.816%, 01/25/37 † USA USD 312,621 0.60398,864 TBW Mortgage-Backed Trust, 2006-3, 2A1, 6.50%, 07/25/36 USA USD 300,251 0.57298,139 IndyMac Index Mortgage Loan Trust, 2004-AR5, FRN, 1.616%, 08/25/34 † USA USD 254,574 0.49350,544 IndyMac Index Mortgage Loan Trust, 2005-AR31, FRN, 1.046%, 01/25/36 † USA USD 224,658 0.43487,365 Morgan Stanley Mortgage Loan Trust, 2006-16AX, 0.926%, 11/25/36 USA USD 216,474 0.41279,529 Alternative Loan Trust, 2007-25, 1A2, 6.50%, 11/25/37 USA USD 206,936 0.39204,733 Morgan Stanley Mortgage Loan Trust, 2005-3AR, FRN, 2.905%, 07/25/35 † USA USD 191,539 0.37203,062 Chase Mortgage Finance Trust, 2006-A1, 3.210%, 09/25/36 USA USD 180,009 0.34184,438 IndyMac Index Mortgage Loan Trust, 2006-AR2, FRN, 3.351%, 09/25/36 † USA USD 147,128 0.28118,957 GSR Mortgage Loan Trust, 2005-AR5, 1A1, FRN, 3.246%, 10/25/35 † USA USD 104,243 0.20106,531 Deutsche Alternative-A Securities, Inc. Mortgage Loan Trust, FRN, 3.089%, 10/25/35 † USA USD 87,835 0.17

97,757 RFMSI Trust, 2007-SA1, 2A1, FRN, 3.759%, 02/25/37 † USA USD 78,854 0.1582,143 First Horizon Mortgage Pass-Through Trust, 2005-AR3, FRN, 2.979%, 08/25/35 † USA USD 71,281 0.1483,420 Structured ARM Loan Trust, FRN, 3.039%, 10/25/35 † USA USD 67,129 0.1373,448 GMACM Mortgage Loan Trust, 2005-AR4,1A, FRN, 3.939%, 07/19/35 † USA USD 64,711 0.1226,908 Alternative Loan Trust, 2004-29CB, A2, 5.00%, 01/25/35 USA USD 27,072 0.05

12,979,239 24.81

Corporate Bonds1,805,000 American Media Inc., sub. note, 144A, zero cpn., 03/01/22 USA USD 1,272,525 2.43

703,000 Bombardier Inc., senior note, 144A, 8.75%, 12/01/21 CAN USD 747,816 1.43715,000 Petrobras Global Finance BV, senior bond, 5.75%, 01/20/20 BRA USD 725,725 1.39797,000 Resolute Forest Products Inc., senior bond, 5.875%, 05/15/23 USA USD 721,285 1.38554,000 AK Steel Corp., senior note, 7.625%, 05/15/20 USA USD 567,850 1.09505,000 NGPL PipeCo LLC, senior secured note, 144A, 9.625%, 06/01/19 USA USD 531,513 1.02495,000 Frontier Communications Corp., senior note, 11.00%, 09/15/25 USA USD 512,944 0.98561,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 502,095 0.96475,000 Everi Payments Inc., senior note, 10.00%, 01/15/22 USA USD 472,625 0.90370,000 Pizzaexpress Financing 2 PLC, senior secured note, first lien, Reg S, 6.625%, 08/01/21 GBR GBP 465,108 0.89422,000 AK Steel Corp., senior note, 7.625%, 10/01/21 USA USD 456,288 0.87390,000 Time Inc., senior note, 144A, 5.75%, 04/15/22 USA USD 405,600 0.78405,000 Scientific Games International Inc., senior note, 10.00%, 12/01/22 USA USD 405,000 0.77375,000 The McClatchy Co., senior secured note, first lien, 9.00%, 12/15/22 USA USD 401,250 0.77391,000 Navistar International Corp., senior bond, 8.25%, 11/01/21 USA USD 396,865 0.76332,000 Postmedia Network Inc., senior note, 144A, PIK, 10.25%, 07/15/23 ‡ CAN USD 383,875 0.73360,000 Open Text Corp., senior bond, 144A, 5.875%, 06/01/26 CAN USD 380,700 0.73331,000 Engility Corp., senior note, 144A, 8.875%, 09/01/24 USA USD 347,964 0.67


— Franklin K2 Long Short Credit Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)324,068 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg

SA, senior note, 6.875%, 02/15/21 USA USD 333,466 0.64351,000 RR Donnelley & Sons Co., senior bond, 6.00%, 04/01/24 USA USD 332,573 0.64378,000 Opal Acquisition Inc., senior note, 144A, 8.875%, 12/15/21 USA USD 325,080 0.62307,000 iStar Inc., senior note, 5.00%, 07/01/19 USA USD 309,303 0.59263,000 Lee Enterprises Inc., senior secured note, first lien, 144A, 9.50%, 03/15/22 USA USD 280,095 0.54255,000 Clearwire Communications LLC/Clearwire Finance Inc., cvt., senior bond, 144A, 8.25%,

12/01/40 USA USD 267,113 0.51262,000 CHS/Community Health Systems Inc., senior secured note, first lien, 5.125%, 08/15/18 USA USD 257,441 0.49221,000 Conduent Finance Inc./Xerox Business Services LLC, senior note, 144A, 10.50%,

12/15/24 USA USD 237,023 0.45230,000 Transocean Inc., senior note, 144A, 9.00%, 07/15/23 USA USD 236,900 0.45572,519 Petroleos de Venezuela SA, senior bond, Reg S, 6.00%, 11/15/26 VEN USD 221,851 0.42224,000 American Media Inc., secured note, second lien, 144A, 5.50%, 09/01/21 USA USD 220,920 0.42204,000 ROC Finance LLC/ROC Finance 1 Corp., senior secured note, first lien, 144A, 6.75%,

11/15/21 USA USD 207,060 0.40195,000 Standard Industries Inc./NJ, senior note, 144A, 5.125%, 02/15/21 USA USD 204,263 0.39200,000 Universal Hospital Services Inc., secured note, second lien, 7.625%, 08/15/20 USA USD 199,000 0.38184,000 Communications Sales & Leasing Inc., first lien, 144A, 6.00%, 04/15/23 USA USD 190,440 0.36141,000 Petroleos Mexicanos, senior note, Reg S, 1.875%, 04/21/22 MEX EUR 143,204 0.27125,000 AK Steel Corp., senior bond, 8.375%, 04/01/22 USA USD 132,109 0.25165,000 CSN Islands XI Corp., senior note, Reg S, 6.875%, 09/21/19 BRA USD 129,113 0.25125,000 Intelsat Jackson Holdings SA, senior secured note, first lien, 144A, 8.00%, 02/15/24 LUX USD 129,063 0.25120,000 NRG Yield Inc., cvt., senior note, 144A, 3.50%, 02/01/19 USA USD 120,000 0.23125,000 Kindred Healthcare Inc., senior note, 8.75%, 01/15/23 USA USD 117,344 0.22122,000 Univision Communications Inc., senior secured note, first lien, 144A, 5.125%, 02/15/25 USA USD 117,120 0.22105,000 HCA Inc., senior secured bond, first lien, 5.25%, 04/15/25 USA USD 109,856 0.21

97,000 Seven Generations Energy Ltd., senior note, 144A, 8.25%, 05/15/20 CAN USD 103,305 0.2096,000 Viking Cruises Ltd., senior note, 144A, 8.50%, 10/15/22 USA USD 99,960 0.1992,000 Donnelley Financial Solutions Inc., senior note, 144A, 8.25%, 10/15/24 USA USD 93,840 0.1886,000 Telesat Canada/Telesat LLC, senior note, 144A, 8.875%, 11/15/24 CAN USD 89,870 0.1783,000 Frontier Communications Corp., senior note, 10.50%, 09/15/22 USA USD 87,569 0.1780,000 GTT Escrow Corp., senior note, 144A, 7.875%, 12/31/24 USA USD 84,000 0.1677,000 Pattern Energy Group Inc., cvt., senior note, 4.00%, 07/15/20 USA USD 74,642 0.1466,000 Petroleos Mexicanos, senior note, Reg S, 5.375%, 03/13/22 MEX USD 67,665 0.1361,000 RR Donnelley & Sons Co., senior note, 6.50%, 11/15/23 USA USD 59,704 0.1150,000 Jaguar Holding Co. II/Pharmaceutical Product Development LLC, senior note, 144A,

6.375%, 08/01/23 USA USD 53,625 0.1056,000 Harland Clarke Holdings Corp., senior note, 144A, 9.25%, 03/01/21 USA USD 49,490 0.0946,000 Petroleos Mexicanos, senior note, Reg S, FRN, 4.606%, 03/11/22 † MEX USD 47,495 0.0944,000 Viking Cruises Ltd., senior bond, 144A, 6.25%, 05/15/25 USA USD 41,140 0.0840,000 Mohegan Tribal Gaming Authority, senior note, 144A, 7.875%, 10/15/24 USA USD 40,950 0.0834,000 RR Donnelley & Sons Co., senior note, 7.00%, 02/15/22 USA USD 34,340 0.0731,000 TerraForm Power Operating LLC, senior note, 144A, 6.375%, 02/01/23 USA USD 31,543 0.0618,000 Parsley Energy LLC/Parsley Finance Corp., senior note, 144A, 5.375%, 01/15/25 USA USD 18,151 0.03

5,000 Harland Clarke Holdings Corp., first lien, 144A 6.875%, 03/01/20 USA USD 4,850 0.01

15,599,504 29.81

Government and Municipal Bonds338,521 Government of Argentina, senior bond, 7.82%, 12/31/33 ARG EUR 348,327 0.66

5,000,000 Government of Argentina, 21.20%, 09/19/18 ARG ARS 340,938 0.65250,000 Government of Iraq, Reg S, 5.80%, 01/15/28 IRQ USD 208,351 0.40200,000 Government of Argentina, senior note, Reg S, 3.875%, 01/15/22 ARG EUR 202,319 0.39200,000 Government of Argentina, Reg S, 5.00%, 01/15/27 ARG EUR 186,274 0.36

10,000,000 Government of Russia, 6.40%, 05/27/20 RUS RUB 155,240 0.30

1,441,449 2.76

Securities Maturing Within One Year429,000 NGPL PipeCo LLC, secured note, 144A, 7.119%, 12/15/17 USA USD 449,378 0.86

TOTAL BONDS 30,469,570 58.24





— Franklin K2 Long Short Credit Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


967,939 Agility Public Warehousing Co. KSC KWT KWD 1,963,558 2.1795,000 Gulf Warehousing Co. QAT QAR 1,460,976 1.61

3,424,534 3.78

Airlines215,818 Jazeera Airways Co. KSC KWT KWD 543,729 0.60

Banks81,886 Qatar National Bank SAQ QAT QAR 3,663,215 4.04

949,480 Commercial International Bank Egypt SAE, Reg S, GDR EGY USD 3,465,602 3.83483,000 Morgan Stanley BV (CRTP Samba Financial Group, Reg S) SAU USD 3,134,775 3.46

2,285,489 Bank Muscat SAOG OMN OMR 2,789,389 3.081,166,200 Emirates NBD PJSC ARE AED 2,695,701 2.981,262,774 National Bank of Kuwait SAKP KWT KWD 2,685,610 2.961,193,859 Abu Dhabi Commercial Bank PJSC ARE AED 2,242,813 2.48

312,992 Credit Suisse Nassau (CRTP Banque Saudi Fransi) SAU USD 2,177,379 2.401,060,000 Union National Bank PJSC ARE AED 1,310,245 1.45

161,694 HSBC Bank PLC (CRTP Banque Saudi Fransi) SAU USD 1,124,850 1.2495,000 Credit Suisse Nassau (CRTP Samba Financial Group, Reg S) SAU USD 616,571 0.68

25,906,150 28.60

Building Products815,013 National Central Cooling Co. PJSC ARE AED 446,017 0.49

Capital Markets11,076,066 Amanat Holdings PJSC ARE AED 2,958,322 3.27

1,383,334 Egyptian Financial Group-Hermes Holding Co. EGY EGP 1,931,937 2.13

4,890,259 5.40

Construction & Engineering333,983 Orascom Construction Ltd. ARE USD 1,750,071 1.93

Construction Materials77,890 Qatar National Cement Co. QSC QAT QAR 1,839,551 2.03

438,675 Suez Cement Co. SAE EGY EGP 375,039 0.42

2,214,590 2.45

Diversified Telecommunication Services96,837 HSBC Bank PLC (CRTP Saudi Telecom Co.) SAU USD 1,871,284 2.0755,000 Morgan Stanley BV (CRTP Saudi Telecom Co., Reg S) SAU USD 1,062,823 1.17

2,934,107 3.24

Energy Equipment & Services2,853,375 Gulf Marine Services PLC ARE GBP 1,722,316 1.90

Food & Staples Retailing28,795 Al Meera Consumer Goods Co. QSC QAT QAR 1,387,797 1.5337,411 Merrill Lynch International & Co. CV (CRTP Abdullah Al Othaim Markets) SAU USD 982,191 1.0934,800 HSBC Bank PLC (CRTP Abdullah Al Othaim Markets Co., Reg S) SAU USD 913,641 1.01

3,283,629 3.63

Food Products6,806,713 Juhayna Food Industries EGY EGP 2,338,986 2.58

520,000 Agthia Group PJSC ARE AED 1,005,200 1.11245,488 Arabian Food Industries Co., GDR, Reg S EGY USD 515,525 0.57

3,859,711 4.26

Health Care Providers & Services176,730 NMC Health PLC ARE GBP 3,361,363 3.71

Hotels, Restaurants & Leisure206,000 Credit Suisse Nassau (CRTP Al Tayyar Travel Group, Reg S) SAU USD 2,015,086 2.22

81,976 Merrill Lynch International & Co. CV (CRTP Al Tayyar Travel Group) SAU USD 801,887 0.89

2,816,973 3.11

Insurance39,000 Merrill Lynch International & Co. CV (CRTP BUPA Arabia for Cooperative Insurance Co.) SAU USD 1,366,944 1.5112,300 Morgan Stanley BV (CRTP Bupa Arabia for Cooperative Insurance Co., Reg S, 10/0) SAU USD 431,113 0.48

1,798,057 1.99

Metals & Mining2,029,870 Ezz Steel EGY EGP 2,005,238 2.21

Multi-Utilities29,451 Qatar Electricity & Water Co. QSC QAT QAR 1,835,936 2.03

Oil, Gas & Consumable Fuels8,390,370 Dana Gas PJSC ARE AED 1,233,576 1.36


— Franklin MENA Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Real Estate Management & Development1,781,108 Emaar Properties PJSC ARE AED 3,457,568 3.822,764,948 Six of October Development & Investment Co. EGY EGP 2,269,301 2.503,110,604 Aldar Properties PJSC ARE AED 2,227,365 2.463,168,018 Talaat Moustafa Group EGY EGP 1,586,630 1.75

9,540,864 10.53

Road & Rail82,925 Morgan Stanley BV (CRTP United International Transportation Co.) SAU USD 744,862 0.8211,000 HSBC Bank PLC (CRTP United International Transportation) SAU USD 98,806 0.11

843,668 0.93

Specialty Retail86,000 HSBC Bank PLC (CRTP Saudi Co. for Hardware LLC, Reg S) SAU USD 1,954,129 2.16

191,009 Morgan Stanley BV (CRTP Fawaz Abdulaziz Alhokair & Co., Reg S) SAU USD 1,873,536 2.0785,000 HSBC Bank PLC (CRTP Fawaz Abdulaziz Alhokair & Co., 144A) SAU USD 833,733 0.9236,500 Credit Suisse Nassau (CRTP Saudi Co. for Hardware LLC, Reg S) SAU USD 829,368 0.91

5,490,766 6.06

Tobacco96,387 Eastern Tobacco EGY EGP 1,488,602 1.64

Trading Companies & Distributors1,795,466 ALAFCO Aviation Lease and Finance Co. KSCP KWT KWD 1,409,913 1.56

Transportation Infrastructure131,493 DP World Ltd. ARE USD 2,302,443 2.54

Wireless Telecommunication Services937,500 Mobile Telecommunications Co. KSC KWT KWD 1,257,648 1.39

TOTAL SHARES 86,360,160 95.34



246,670 National Gulf Holding ** KWT KWD 76,902 0.09

Wireless Telecommunication Services820,000 Ooredoo ** OMN OMR 1,405,367 1.55






— Franklin MENA Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESDiversified Metals & Mining

175,610 BHP Billiton PLC, ADR AUS USD 5,524,691 1.49454,800 Antofagasta PLC GBR GBP 3,781,656 1.02

96,400 Rio Tinto PLC, ADR GBR USD 3,707,544 1.00893,796 Sandfire Resources NL AUS AUD 3,637,592 0.98

1,060,332 Glencore PLC CHE GBP 3,622,663 0.97267,200 Freeport-McMoRan Inc., B USA USD 3,524,368 0.95375,300 Lundin Mining Corp. CAN CAD 1,788,740 0.48

88,900 Teck Resources Ltd., B CAN USD 1,780,667 0.48175,100 First Quantum Minerals Ltd. CAN CAD 1,740,829 0.47779,300 South32 Ltd. AUS AUD 1,546,443 0.42226,800 Imperial Metals Corp. CAN CAD 1,023,539 0.27159,200 HudBay Minerals Inc. CAN CAD 910,527 0.24

1,980,698 Nautilus Minerals Inc. CAN CAD 213,882 0.06

32,803,141 8.83

Fertilizers & Agricultural Chemicals169,400 The Mosaic Co. USA USD 4,968,502 1.34

Gold231,200 Goldcorp Inc. CAN USD 3,144,320 0.85191,950 Barrick Gold Corp. CAN USD 3,067,361 0.82

1,167,782 B2Gold Corp. CAN CAD 2,774,221 0.75441,000 Guyana Goldfields Inc. CAN CAD 2,009,920 0.54207,500 Tahoe Resources Inc. USA CAD 1,954,777 0.52

42,200 Agnico Eagle Mines Ltd. CAN CAD 1,774,047 0.48255,400 Alamos Gold Inc., A CAN CAD 1,761,248 0.47111,797 Newcrest Mining Ltd. AUS AUD 1,633,623 0.44

21,300 Randgold Resources Ltd., ADR GBR USD 1,626,042 0.44533,334 OceanaGold Corp. AUS CAD 1,552,976 0.42

2,042,124 G-Resources Group Ltd. HKG HKD 37,395 0.01

21,335,930 5.74

Integrated Oil & Gas235,300 Royal Dutch Shell PLC, A, ADR GBR USD 12,795,614 3.44170,280 Occidental Petroleum Corp. USA USD 12,129,045 3.27194,590 Total SA, B, ADR FRA USD 9,918,252 2.67

66,600 Chevron Corp. USA USD 7,838,820 2.1179,000 Exxon Mobil Corp. USA USD 7,130,540 1.92

175,200 Suncor Energy Inc. CAN CAD 5,727,793 1.54107,400 BP PLC, ADR GBR USD 4,014,612 1.08

44,802 Royal Dutch Shell PLC, A GBR GBP 1,237,621 0.33110,000 Petroleo Brasileiro SA, ADR BRA USD 1,112,100 0.30

61,904,397 16.66

Oil & Gas Drilling472,807 Pioneer Energy Services Corp. USA USD 3,238,728 0.87147,380 Rowan Cos. PLC USA USD 2,784,008 0.75168,833 Ensco PLC, A USA USD 1,641,057 0.44

7,663,793 2.06

Oil & Gas Equipment & Services215,408 Schlumberger Ltd. USA USD 18,083,502 4.87229,011 Halliburton Co. USA USD 12,387,205 3.33227,640 FMC Technologies Inc. USA USD 8,088,049 2.18379,580 Superior Energy Services Inc. USA USD 6,407,310 1.73

83,748 Baker Hughes Inc. USA USD 5,441,108 1.47157,320 Oceaneering International Inc. USA USD 4,437,997 1.19

89,960 Oil States International Inc. USA USD 3,508,440 0.94574,800 Weatherford International PLC USA USD 2,868,252 0.77

44,060 Dril-Quip Inc. USA USD 2,645,803 0.7188,600 RPC Inc. USA USD 1,755,166 0.4792,300 Mammoth Energy Services Inc. USA USD 1,402,960 0.3855,100 PHI Inc. USA USD 992,902 0.27

122,900 Hunting PLC GBR GBP 950,000 0.26

68,968,694 18.57

Oil & Gas Exploration & Production203,366 Anadarko Petroleum Corp. USA USD 14,180,711 3.82352,300 Noble Energy Inc. USA USD 13,408,538 3.61117,400 EOG Resources Inc. USA USD 11,869,140 3.20428,200 Cabot Oil & Gas Corp., A USA USD 10,002,752 2.69

48,000 Pioneer Natural Resources Co. USA USD 8,643,360 2.33121,700 EQT Corp. USA USD 7,959,180 2.14148,200 ConocoPhillips USA USD 7,430,748 2.00

43,620 Concho Resources Inc. USA USD 5,784,012 1.5685,860 Hess Corp. USA USD 5,348,219 1.44

200,900 Matador Resources Co. USA USD 5,175,184 1.39159,118 Canadian Natural Resources Ltd. CAN CAD 5,070,494 1.36515,300 Synergy Resources Corp. USA USD 4,591,323 1.24178,300 Gulfport Energy Corp. USA USD 3,858,412 1.04


— Franklin Natural Resources Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Oil & Gas Exploration & Production (continued)81,700 SM Energy Co. USA USD 2,817,016 0.76

154,270 Marathon Oil Corp. USA USD 2,670,414 0.72883,800 Cairn Energy PLC GBR GBP 2,568,265 0.69

24,900 Diamondback Energy Inc. USA USD 2,516,394 0.6818,000 Cimarex Energy Co. USA USD 2,446,200 0.66

123,100 Aker BP ASA NOR NOK 2,201,522 0.59667,220 Gran Tierra Energy Inc. COL USD 2,015,004 0.54110,600 Callon Petroleum Co. USA USD 1,699,922 0.46

37,300 Resolute Energy Corp. USA USD 1,536,387 0.4168,200 Rice Energy Inc. USA USD 1,456,070 0.39

788,000 Ophir Energy PLC GBR GBP 936,724 0.2550,563 Sanchez Energy Corp. USA USD 456,582 0.12

321,070 Cobalt International Energy Inc. USA USD 391,705 0.11

127,034,278 34.20

Oil & Gas Refining & Marketing80,100 Valero Energy Corp. USA USD 5,472,432 1.4745,205 Phillips 66 USA USD 3,906,164 1.0573,200 Marathon Petroleum Corp. USA USD 3,685,620 0.99

108,700 HollyFrontier Corp. USA USD 3,561,012 0.96

16,625,228 4.47

Oil & Gas Storage & Transportation381,100 Kinder Morgan Inc. USA USD 7,892,581 2.12

93,600 Spectra Energy Corp. USA USD 3,846,024 1.04

11,738,605 3.16

TOTAL SHARES 353,042,568 95.03


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESOil & Gas Exploration & Production

46,800 Sanchez Energy Corp., 4.875%, cvt. pfd., A USA USD 1,298,232 0.3530,000 Sanchez Energy Corp., 6.50%, cvt. pfd., B USA USD 925,500 0.25

2,223,732 0.60



2,296,000 Cobalt International Energy Inc., cvt., senior bond, 3.125%, 05/15/24 USA USD 665,840 0.18





— Franklin Natural Resources Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


363,289 AMUNDI ETF MSCI EM Asia UCITS ETF FRA USD 8,954,166 9.2162,065 iShares VII PLC - iShares Core MSCI Pacific ex Japan UCITS ETF, Class USD (Acc) IRL USD 7,303,189 7.5147,222 iShares III PLC - iShares Global Government Bond UCITS ETF, Class USD (Dist) IRL USD 4,886,060 5.0339,958 iShares VII PLC - iShares USD Treasury Bond 3-7 Yr. UCITS ETF, Class USD (Acc) IRL USD 4,876,474 5.0260,804 UBS (Irl) ETF PLC – MSCI USA Value UCITS ETF, Class A (Dist) USA GBP 4,166,017 4.2912,272 iShares II PLC - iShares USD TIPS UCITS ETF, Class USD (Acc) USA USD 2,438,569 2.5198,539 iShares PLC - iShares Core MSCI Emerging Markets IMI UCITS ETF, Class USD (Acc) IRL USD 2,176,234 2.2464,597 The Jupiter Global Fund - Jupiter European Opportunities, Class I EUR Accumulation LUX EUR 1,758,337 1.81

6,316 Robeco Capital Growth Funds - Robeco High Yield Bonds, Class IH USD LUX USD 1,594,142 1.6442,150 iShares III PLC - iShares Core MSCI Japan IMI UCITS ETF, Class USD (Acc) JPN USD 1,460,497 1.5024,576 db x-trackers Euro Stoxx 50 UCITS ETF, Class 1C USA GBP 1,140,874 1.17

40,754,559 41.93




729,307 FTIF Templeton Asian Bond Fund, Class Y (Mdis) USD LUX USD 7,234,720 7.44653,238 FTIF Franklin U.S. Total Return Fund, Class Y (Mdis) USD LUX USD 6,617,304 6.81493,365 FTIF Franklin U.S. Equity Fund, Class Y (Mdis) USD LUX USD 5,806,901 5.97

2,649,988 First State Investments ICVC - Stewart Investors Asia Pacific Leaders Fund, Class B(Accumulation) EUR GBR EUR 5,433,316 5.59

477,183 FTIF Templeton Asian Smaller Companies Fund, Class Y (Mdis) USD LUX USD 5,387,398 5.54254,975 Standard Life Investments Global SICAV - European Corporate Bond Fund, Class D

Accumulation EUR LUX EUR 4,910,742 5.05177,154 Macquarie Collective Funds PLC - Delaware Investments U.S. Large Cap Value Fund, Class I

USD (Accumulating) IRL USD 4,241,077 4.36333,807 Macquarie Collective Funds PLC - Delaware Investment Corporate Bond Fund, Class F USD

(Accumulating) IRL USD 3,448,225 3.5597,909 Comgest Growth PLC - Comgest Growth Emerging Markets, Class I Accumulation USD IRL USD 3,248,634 3.34

548 Pioneer Funds - U.S. Fundamental Growth, Class I USD Accumulating LUX USD 2,492,444 2.56200,068 FTIF Franklin Mutual European Fund, Class Y (Mdis) EUR LUX EUR 2,269,314 2.34

12,059 Man Funds PLC - Man GLG Japan CoreAlpha Equity, Class I H USD IRL USD 2,241,258 2.3160,068 FTIF Franklin European Small-Mid Cap Growth Fund, Class Y (Mdis) EUR LUX EUR 570,097 0.59

53,901,430 55.45





— Franklin NextStep Balanced Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


21,354 iShares VII PLC - iShares USD Treasury Bond 3-7 Yr. UCITS ETF, Class USD (Acc) IRL USD 2,606,042 12.7322,490 iShares III PLC - iShares Global Government Bond UCITS ETF, Class USD (Dist) IRL USD 2,327,040 11.37

5,124 iShares II PLC - iShares USD TIPS UCITS ETF, Class USD (Acc) USA USD 1,018,190 4.979,141 UBS (Irl) ETF PLC – MSCI USA Value UCITS ETF, Class A (Dist) USA GBP 626,300 3.061,712 Robeco Capital Growth Funds - Robeco High Yield Bonds, Class IH USD LUX USD 432,062 2.11

10,802 The Jupiter Global Fund - Jupiter European Opportunities, Class I EUR Accumulation LUX EUR 294,038 1.445,332 iShares III PLC - iShares Core MSCI Japan IMI UCITS ETF, Class USD (Acc) JPN USD 184,754 0.903,638 db x-trackers Euro Stoxx 50 UCITS ETF, Class 1C USA GBP 168,884 0.836,309 iShares PLC - iShares Core MSCI Emerging Markets IMI UCITS ETF, Class USD (Acc) IRL USD 139,334 0.68

867 iShares VII PLC - iShares Core MSCI Pacific ex Japan UCITS ETF, Class USD (Acc) IRL USD 102,020 0.50

7,898,664 38.59




243,457 FTIF Franklin U.S. Total Return Fund, Class Y (Mdis) USD LUX USD 2,466,218 12.05202,735 FTIF Templeton Global Total Return Fund, Class Y (Mdis) USD LUX USD 2,153,049 10.52105,865 Standard Life Investments Global SICAV - European Corporate Bond Fund, Class D

Accumulation EUR LUX EUR 2,038,936 9.96140,724 Macquarie Collective Funds PLC - Delaware Investment Corporate Bond Fund, Class F USD

(Accumulating) IRL USD 1,453,675 7.1074,378 FTIF Franklin U.S. Equity Fund, Class Y (Mdis) USD LUX USD 875,429 4.2826,129 Macquarie Collective Funds PLC - Delaware Investments U.S. Large Cap Value Fund, Class I

USD (Accumulating) IRL USD 625,535 3.0533,335 FTIF Franklin Mutual European Fund, Class Y (Mdis) EUR LUX EUR 378,105 1.85

82 Pioneer Funds - U.S. Fundamental Growth, Class I USD Accumulating LUX USD 375,523 1.839,254 Comgest Growth PLC - Comgest Growth Emerging Markets, Class I Accumulation USD IRL USD 307,042 1.501,463 Man Funds PLC - Man GLG Japan CoreAlpha Equity, Class I H USD IRL USD 271,832 1.33

53,266 First State Investments ICVC - Stewart Investors Asia Pacific Leaders Fund, Class B(Accumulation) EUR GBR EUR 109,212 0.53

11,054,556 54.00





— Franklin NextStep Conservative Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


92,255 AMUNDI ETF MSCI EM Asia UCITS ETF FRA USD 2,273,855 10.0517,486 iShares VII PLC - iShares Core MSCI Pacific ex Japan UCITS ETF, Class USD (Acc) IRL USD 2,057,578 9.0916,800 UBS (Irl) ETF PLC – MSCI USA Value UCITS ETF, Class A (Dist) USA GBP 1,151,060 5.0833,271 iShares PLC - iShares Core MSCI Emerging Markets IMI UCITS ETF, Class USD (Acc) IRL USD 734,790 3.25

6,525 iShares III PLC - iShares Global Government Bond UCITS ETF, Class USD (Dist) IRL USD 675,142 2.985,521 iShares VII PLC - iShares USD Treasury Bond 3-7 Yr. UCITS ETF, Class USD (Acc) IRL USD 673,783 2.98

17,383 The Jupiter Global Fund - Jupiter European Opportunities, Class I EUR Accumulation LUX EUR 473,165 2.0911,616 iShares III PLC - iShares Core MSCI Japan IMI UCITS ETF, Class USD (Acc) JPN USD 402,494 1.78

1,695 iShares II PLC - iShares USD TIPS UCITS ETF, Class USD (Acc) USA USD 336,814 1.496,755 db x-trackers Euro Stoxx 50 UCITS ETF, Class 1C USA GBP 313,582 1.38

883 Robeco Capital Growth Funds - Robeco High Yield Bonds, Class IH USD LUX USD 222,951 0.98

9,315,214 41.15




1,113,609 First State Investments ICVC - Stewart Investors Asia Pacific Leaders Fund, Class B(Accumulation) EUR GBR EUR 2,283,252 10.09

146,282 FTIF Templeton Asian Smaller Companies Fund, Class Y (Mdis) USD LUX USD 1,651,526 7.30136,817 FTIF Franklin U.S. Equity Fund, Class Y (Mdis) USD LUX USD 1,610,339 7.11

48,849 Macquarie Collective Funds PLC - Delaware Investments U.S. Large Cap Value Fund, Class IUSD (Accumulating) IRL USD 1,169,432 5.17

32,768 Comgest Growth PLC - Comgest Growth Emerging Markets, Class I Accumulation USD IRL USD 1,087,246 4.80101,803 FTIF Templeton Asian Bond Fund, Class Y (Mdis) USD LUX USD 1,009,888 4.46

90,160 FTIF Franklin U.S. Total Return Fund, Class Y (Mdis) USD LUX USD 913,321 4.03154 Pioneer Funds - U.S. Fundamental Growth, Class I USD Accumulating LUX USD 700,095 3.09

35,232 Standard Life Investments Global SICAV - European Corporate Bond Fund, Class DAccumulation EUR LUX EUR 678,552 3.00

55,286 FTIF Franklin Mutual European Fund, Class Y (Mdis) EUR LUX EUR 627,088 2.773,233 Man Funds PLC - Man GLG Japan CoreAlpha Equity, Class I H USD IRL USD 600,938 2.65

46,127 Macquarie Collective Funds PLC - Delaware Investment Corporate Bond Fund, Class F USD(Accumulating) IRL USD 476,490 2.11

16,613 FTIF Franklin European Small-Mid Cap Growth Fund, Class Y (Mdis) EUR LUX EUR 157,675 0.70

12,965,842 57.28





— Franklin NextStep Dynamic Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


15,444 UBS (Irl) ETF PLC – MSCI USA Value UCITS ETF, Class A (Dist) USA GBP 1,058,153 9.703,546 iShares VII PLC - iShares USD Treasury Bond 3-7 Yr. UCITS ETF, Class USD (Acc) IRL USD 432,754 3.97

15,715 The Jupiter Global Fund - Jupiter European Opportunities, Class I EUR Accumulation LUX EUR 427,772 3.923,725 iShares III PLC - iShares Global Government Bond UCITS ETF, Class USD (Dist) IRL USD 385,426 3.538,927 iShares III PLC - iShares Core MSCI Japan IMI UCITS ETF, Class USD (Acc) JPN USD 309,321 2.846,174 db x-trackers Euro Stoxx 50 UCITS ETF, Class 1C USA GBP 286,611 2.638,720 iShares PLC - iShares Core MSCI Emerging Markets IMI UCITS ETF, Class USD (Acc) IRL USD 192,581 1.76

846 iShares II PLC - iShares USD TIPS UCITS ETF, Class USD (Acc) USA USD 168,109 1.541,214 iShares VII PLC - iShares Core MSCI Pacific ex Japan UCITS ETF, Class USD (Acc) IRL USD 142,851 1.31

282 Robeco Capital Growth Funds - Robeco High Yield Bonds, Class IH USD LUX USD 71,135 0.65

3,474,713 31.85




124,524 FTIF Franklin U.S. Equity Fund, Class Y (Mdis) USD LUX USD 1,465,650 13.4344,065 Macquarie Collective Funds PLC - Delaware Investments U.S. Large Cap Value Fund, Class I

USD (Accumulating) IRL USD 1,054,916 9.67139 Pioneer Funds - U.S. Fundamental Growth, Class I USD Accumulating LUX USD 633,265 5.81

50,402 FTIF Franklin Mutual European Fund, Class Y (Mdis) EUR LUX EUR 571,689 5.2414,215 Comgest Growth PLC - Comgest Growth Emerging Markets, Class I Accumulation USD IRL USD 471,661 4.32

2,463 Man Funds PLC - Man GLG Japan CoreAlpha Equity, Class I H USD IRL USD 457,830 4.2040,647 FTIF Franklin K2 Alternative Strategies Fund, Class Y (Mdis) USD LUX USD 434,115 3.9840,420 FTIF Franklin U.S. Total Return Fund, Class Y (Mdis) USD LUX USD 409,451 3.7533,597 FTIF Templeton Global Total Return Fund, Class Y (Mdis) USD LUX USD 356,804 3.2717,599 Standard Life Investments Global SICAV - European Corporate Bond Fund, Class D

Accumulation EUR LUX EUR 338,951 3.1123,313 Macquarie Collective Funds PLC - Delaware Investment Corporate Bond Fund, Class F USD

(Accumulating) IRL USD 240,823 2.2115,069 FTIF Franklin European Small-Mid Cap Growth Fund, Class Y (Mdis) EUR LUX EUR 143,015 1.3169,431 First State Investments ICVC - Stewart Investors Asia Pacific Leaders Fund, Class B

(Accumulation) EUR GBR EUR 142,355 1.3115,496 FTIF Templeton Emerging Markets Smaller Companies Fund, Class Y (Mdis) USD LUX USD 142,249 1.30

6,862,774 62.91





— Franklin NextStep Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


32,313 UBS (Irl) ETF PLC – MSCI USA Value UCITS ETF, Class A (Dist) USA GBP 2,213,941 7.6415,417 iShares VII PLC - iShares USD Treasury Bond 3-7 Yr. UCITS ETF, Class USD (Acc) IRL USD 1,881,491 6.4916,212 iShares III PLC - iShares Global Government Bond UCITS ETF, Class USD (Dist) IRL USD 1,677,456 5.7932,106 The Jupiter Global Fund - Jupiter European Opportunities, Class I EUR Accumulation LUX EUR 873,948 3.01

3,695 iShares II PLC - iShares USD TIPS UCITS ETF, Class USD (Acc) USA USD 734,234 2.5318,857 iShares III PLC - iShares Core MSCI Japan IMI UCITS ETF, Class USD (Acc) JPN USD 653,395 2.2512,634 db x-trackers Euro Stoxx 50 UCITS ETF, Class 1C USA GBP 586,499 2.0218,134 iShares PLC - iShares Core MSCI Emerging Markets IMI UCITS ETF, Class USD (Acc) IRL USD 400,489 1.38

1,241 Robeco Capital Growth Funds - Robeco High Yield Bonds, Class IH USD LUX USD 313,115 1.082,474 iShares VII PLC - iShares Core MSCI Pacific ex Japan UCITS ETF, Class USD (Acc) IRL USD 291,116 1.00

9,625,684 33.19




261,685 FTIF Franklin U.S. Equity Fund, Class Y (Mdis) USD LUX USD 3,080,028 10.6292,023 Macquarie Collective Funds PLC - Delaware Investments U.S. Large Cap Value Fund, Class I

USD (Accumulating) IRL USD 2,203,041 7.60175,674 FTIF Franklin U.S. Total Return Fund, Class Y (Mdis) USD LUX USD 1,779,582 6.14146,290 FTIF Templeton Global Total Return Fund, Class Y (Mdis) USD LUX USD 1,553,599 5.36

76,420 Standard Life Investments Global SICAV - European Corporate Bond Fund, Class DAccumulation EUR LUX EUR 1,471,816 5.07

291 Pioneer Funds - U.S. Fundamental Growth, Class I USD Accumulating LUX USD 1,322,135 4.56102,845 FTIF Franklin Mutual European Fund, Class Y (Mdis) EUR LUX EUR 1,166,539 4.02108,260 FTIF Franklin K2 Alternative Strategies Fund, Class Y (Mdis) USD LUX USD 1,156,221 3.99101,325 Macquarie Collective Funds PLC - Delaware Investment Corporate Bond Fund, Class F USD

(Accumulating) IRL USD 1,046,690 3.615,177 Man Funds PLC - Man GLG Japan CoreAlpha Equity, Class I H USD IRL USD 962,218 3.32

28,966 Comgest Growth PLC - Comgest Growth Emerging Markets, Class I Accumulation USD IRL USD 961,099 3.3132,064 FTIF Templeton Emerging Markets Smaller Companies Fund, Class Y (Mdis) USD LUX USD 294,345 1.0130,875 FTIF Franklin European Small-Mid Cap Growth Fund, Class Y (Mdis) EUR LUX EUR 293,032 1.01

142,685 First State Investments ICVC - Stewart Investors Asia Pacific Leaders Fund, Class B(Accumulation) EUR GBR EUR 292,549 1.01

17,582,894 60.63





— Franklin NextStep Moderate Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


18,031 iShares III PLC - iShares Global Government Bond UCITS ETF, Class USD (Dist) IRL USD 1,865,668 9.8315,272 iShares VII PLC - iShares USD Treasury Bond 3-7 Yr. UCITS ETF, Class USD (Acc) IRL USD 1,863,795 9.82

4,688 iShares II PLC - iShares USD TIPS UCITS ETF, Class USD (Acc) USA USD 931,552 4.9134,330 AMUNDI ETF MSCI EM Asia UCITS ETF FRA USD 846,149 4.46

5,793 iShares VII PLC - iShares Core MSCI Pacific ex Japan UCITS ETF, Class USD (Acc) IRL USD 681,662 3.592,393 Robeco Capital Growth Funds - Robeco High Yield Bonds, Class IH USD LUX USD 604,073 3.183,838 UBS (Irl) ETF PLC – MSCI USA Value UCITS ETF, Class A (Dist) USA GBP 262,962 1.397,054 iShares PLC - iShares Core MSCI Emerging Markets IMI UCITS ETF, Class USD (Acc) IRL USD 155,788 0.824,730 The Jupiter Global Fund - Jupiter European Opportunities, Class I EUR Accumulation LUX EUR 128,749 0.682,808 iShares III PLC - iShares Core MSCI Japan IMI UCITS ETF, Class USD (Acc) JPN USD 97,297 0.511,572 db x-trackers Euro Stoxx 50 UCITS ETF, Class 1C USA GBP 72,976 0.38

7,510,671 39.57




276,047 FTIF Templeton Asian Bond Fund, Class Y (Mdis) USD LUX USD 2,738,382 14.43249,292 FTIF Franklin U.S. Total Return Fund, Class Y (Mdis) USD LUX USD 2,525,324 13.30

97,414 Standard Life Investments Global SICAV - European Corporate Bond Fund, Class DAccumulation EUR LUX EUR 1,876,172 9.88

127,533 Macquarie Collective Funds PLC - Delaware Investment Corporate Bond Fund, Class F USD(Accumulating) IRL USD 1,317,412 6.94

44,958 FTIF Templeton Asian Smaller Companies Fund, Class Y (Mdis) USD LUX USD 507,574 2.67247,324 First State Investments ICVC - Stewart Investors Asia Pacific Leaders Fund, Class B

(Accumulation) EUR GBR EUR 507,092 2.6731,512 FTIF Franklin U.S. Equity Fund, Class Y (Mdis) USD LUX USD 370,891 1.9511,164 Macquarie Collective Funds PLC - Delaware Investments U.S. Large Cap Value Fund, Class I

USD (Accumulating) IRL USD 267,277 1.416,811 Comgest Growth PLC - Comgest Growth Emerging Markets, Class I Accumulation USD IRL USD 225,993 1.19

14,522 FTIF Franklin Mutual European Fund, Class Y (Mdis) EUR LUX EUR 164,720 0.8735 Pioneer Funds - U.S. Fundamental Growth, Class I USD Accumulating LUX USD 160,684 0.85

776 Man Funds PLC - Man GLG Japan CoreAlpha Equity, Class I H USD IRL USD 144,325 0.76

10,805,846 56.92





— Franklin NextStep Stable Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGINVESTMENTS FUNDSDiversified Financials

15,200 iShares II PLC - iShares US Property Yield UCITS ETF, Class USD (Dist) USA GBP 429,719 4.70


SHARESEnergy

800 Halliburton Co. USA USD 43,272 0.47500 Schlumberger Ltd. USA USD 41,975 0.46300 Chevron Corp. USA USD 35,310 0.39500 Anadarko Petroleum Corp. USA USD 34,865 0.38350 Exxon Mobil Corp. USA USD 31,591 0.34400 Occidental Petroleum Corp. USA USD 28,492 0.31500 Royal Dutch Shell PLC, A, ADR GBR USD 27,190 0.30800 Canadian Natural Resources Ltd. CAN USD 25,504 0.28600 Noble Energy Inc. USA USD 22,836 0.25100 Pioneer Natural Resources Co. USA USD 18,007 0.20

2,700 Weatherford International PLC USA USD 13,473 0.15

322,515 3.53

Materials600 The Dow Chemical Co. USA USD 34,332 0.38

2,300 Goldcorp Inc. CAN USD 31,280 0.34500 Nucor Corp. USA USD 29,760 0.33600 Rio Tinto PLC, ADR GBR USD 23,076 0.25700 BHP Billiton PLC, ADR AUS USD 22,022 0.24200 Agrium Inc. CAN USD 20,110 0.22

1,200 Freeport-McMoRan Inc., B USA USD 15,828 0.17

176,408 1.93




50,000 FMG Resources (August 2006) Pty. Ltd., senior secured note, 144A, 9.75%, 03/01/22 AUS USD 58,253 0.6450,000 Energy Transfer Equity LP, senior note, first lien, 7.50%, 10/15/20 USA USD 56,000 0.6150,000 Sprint Communications Inc., senior note, 144A, 7.00%, 03/01/20 USA USD 54,375 0.5950,000 HCA Inc., senior secured bond, first lien, 5.875%, 03/15/22 USA USD 54,000 0.5950,000 Sabine Pass Liquefaction LLC, first lien, 5.625%, 02/01/21 USA USD 53,750 0.5930,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 32,528 0.36

308,906 3.38

Government and Municipal BondsUS - Issued

794,284 U.S. Treasury Note, Index Linked, 0.125%, 04/15/19 USA USD 804,385 8.80760,071 U.S. Treasury Note, Index Linked, 1.375%, 01/15/20 USA USD 799,673 8.75692,259 U.S. Treasury Note, Index Linked, 1.625%, 01/15/18 USA USD 710,515 7.78669,208 U.S. Treasury Note, Index Linked, 0.125%, 04/15/18 USA USD 675,455 7.39562,901 U.S. Treasury Note, Index Linked, 2.125%, 01/15/19 USA USD 594,939 6.51560,447 U.S. Treasury Note, Index Linked, 1.375%, 07/15/18 USA USD 581,750 6.37

TOTAL US - ISSUED 4,166,717 45.60

Non US - Issued820,000 Government of Malaysia, senior note, 3.58%, 09/28/18 MYS MYR 183,239 2.00

38,200 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 179,279 1.96570 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 168,763 1.85

2,050,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 156,346 1.71428,000 Government of Poland, FRN, 1.79%, 01/25/21 † POL PLN 100,571 1.10

70 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/18 BRA BRL 63,660 0.70

TOTAL NON US - ISSUED 851,858 9.32

5,018,575 54.92

Securities Maturing Within One Year719,144 U.S. Treasury Note, Index Linked, 2.375%, 01/15/17 USA USD 719,229 7.87478,884 U.S. Treasury Note, Index Linked, 0.125%, 04/15/17 USA USD 479,972 5.25

9,000 Government of Mexico, senior note, M, 5.00%, 06/15/17 MEX MXN 43,164 0.47

1,242,365 13.59

TOTAL BONDS 6,569,846 71.89





— Franklin Real Return Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


245,000 iShares II PLC - iShares USD High Yield Corporate Bond UCITS ETF, Class USD(Dist) USA USD 25,477,550 2.41



382,950 W&T Offshore Inc. USA USD 1,060,772 0.101,365 Midstates Petroleum Co. Inc. USA USD 28,310 0.01

1,089,082 0.11









26,334 0.00

Electric Utilities102,755 Vistra Energy Corp. USA USD 1,592,702 0.15

Oil, Gas & Consumable Fuels20,714 Penn Virginia Corp., 144A USA USD 1,014,986 0.1016,580 Penn Virginia Corp. USA USD 812,420 0.08

1,827,406 0.18



17,792,061 FHLMC, 4.00%, 06/01/46 USA USD 18,699,615 1.7718,050,000 FNMA, 3.00%, 01/01/46 USA USD 17,919,645 1.7014,500,000 FHLMC, 3.00%, 01/01/46 USA USD 14,389,483 1.3712,350,000 GNMA II, SF, 3.00%, 01/01/46 USA USD 12,496,695 1.1811,792,294 FNMA, 3.50%, 07/01/46 USA USD 12,094,161 1.14

8,478,412 GNMA II, SF, 3.50%, 08/20/46 USA USD 8,820,536 0.838,425,550 FHLMC, 3.50%, 08/01/46 USA USD 8,632,705 0.826,830,000 Capital One Multi-Asset Execution Trust, 2016-A2, A2, FRN, 1.334%, 02/15/24 † USA USD 6,878,374 0.655,100,000 Discover Card Execution Note Trust, 2016-A2, A2, FRN, 1.244%, 09/15/21 † USA USD 5,132,560 0.495,100,000 Capital One Multi-Asset Execution Trust, 2016-A1, A1, FRN, 1.154%, 02/15/22 † USA USD 5,123,161 0.485,000,000 FHLMC, 3.50%, 01/01/46 USA USD 5,116,891 0.484,700,000 FNMA, 3.50%, 01/01/46 USA USD 4,814,577 0.464,000,000 Eaton Vance CDO Ltd., 2014-1A, A, 144A, FRN, 2.33%, 07/15/26 † USA USD 4,008,720 0.383,610,000 Morgan Stanley Capital I Trust, 2007-IQ16, AMA, FRN, 6.047%, 12/12/49 † USA USD 3,703,716 0.353,630,000 Atrium XI, 11A, C, 144A, FRN, 4.082%, 10/23/25 † CYM USD 3,631,198 0.343,610,000 Cumberland Park CLO Ltd., 2015-2A, B, 144A, FRN, 2.981%, 07/20/26 † USA USD 3,624,693 0.343,500,000 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN1, M2, FRN, 2.956%,

02/25/24 † USA USD 3,581,807 0.342,810,000 Catamaran CLO Ltd., 2014-2A, BR, 144A, FRN, 3.658%, 10/18/26 † CYM USD 2,818,261 0.272,731,000 Citigroup Commercial Mortgage Trust, 2007-C6, AM, FRN, 5.714%, 12/10/49 † USA USD 2,770,450 0.262,760,000 Bear Stearns Commercial Mortgage Securities Trust, 2006-PW11, AJ, FRN,

5.436%, 03/11/39 † USA USD 2,654,155 0.252,570,000 Galaxy CLO Ltd., 2014-17A, AR, 144A, FRN, 2.80%, 07/15/26 † CYM USD 2,569,602 0.242,389,423 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQ1, M2, FRN, 2.956%,

03/25/25 † USA USD 2,411,205 0.232,314,596 Bear Stearns ARM Trust, 2004-4, A6, FRN, 3.118%, 06/25/34 † USA USD 2,340,770 0.222,170,000 Morgan Stanley Capital I Trust, 2007-IQ16, AM, FRN, 6.051%, 12/12/49 † USA USD 2,235,317 0.212,015,000 CSAIL Commercial Mortgage Trust, 2015-C1, A4, 3.505%, 04/15/50 USA USD 2,071,648 0.202,000,000 Dryden XXVIII Senior Loan Fund, 13-28A, A3L, 144A, FRN, 3.606%, 08/15/25 † CYM USD 1,993,280 0.191,900,000 Eleven Madison Trust Mortgage Trust, 2015-11MD, A, 144A, FRN, 3.555%,

09/10/35 † USA USD 1,957,386 0.191,890,000 Dryden 33 Senior Loan Fund, 2014-33A, BR, 144A, FRN, 2.636%, 10/15/28 † CYM USD 1,891,606 0.181,870,000 Chase Issuance Trust, 2013-A6, A6, FRN, 1.124%, 07/15/20 † USA USD 1,876,917 0.182,022,000 Commercial Mortgage Trust, 2006-GG7, AJ, FRN, 5.774%, 07/10/38 † USA USD 1,876,274 0.181,860,000 Atrium X, 10A, C, 144A, FRN, 3.48%, 07/16/25 † USA USD 1,857,396 0.181,810,000 BlueMountain CLO Ltd., 2012-2A, BR, 144A, FRN, 2.784%, 11/20/28 † CYM USD 1,812,480 0.171,880,000 BCAP LLC Trust, 2009-RR1, 2A2, 144A, FRN, 3.015%, 05/26/35 † USA USD 1,777,860 0.171,760,000 Carlyle Global Market Strategies CLO Ltd., 2012-4A, BR, 144A, FRN, 2.78%,


09/25/24 † USA USD 1,736,516 0.161,700,000 Carlyle Global Market Strategies CLO Ltd., 2012-4A, C1R, 144A, FRN, 3.48%,

01/20/29 † USA USD 1,704,828 0.16


— Franklin Strategic Income Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Asset-Backed Securities (continued)1,660,000 Galaxy CLO Ltd., 2014-17A, BR, 144A, FRN, 2.68%, 07/15/26 † CYM USD 1,648,156 0.161,630,000 Atrium VIII, 8A, CR, 144A, FRN, 3.382%, 10/23/24 † CYM USD 1,631,125 0.151,620,000 Burnham Park CLO Ltd., 2016-1A, B, 144A, FRN, 2.658%, 10/20/29 † CYM USD 1,613,876 0.151,620,000 Burnham Park CLO Ltd., 2016-1A, C, 144A, FRN, 3.258%, 10/20/29 † CYM USD 1,608,044 0.151,530,000 Bear Stearns Commercial Mortgage Securities Trust, 2007-PW16, AM, FRN,

5.711%, 06/11/40 † USA USD 1,550,151 0.151,536,551 Thornburg Mortgage Securities Trust, 2005-1, A3, FRN, 2.632%, 04/25/45 † USA USD 1,544,086 0.151,520,000 Octagon Investment Partners XVII Ltd., 2013-1A, B1, 144A, FRN, 2.582%,

10/25/25 † CYM USD 1,519,795 0.141,500,000 Catamaran CLO Ltd., 2013-1A, C, 144A, FRN, 3.486%, 01/27/25 † USA USD 1,488,510 0.141,430,000 Voya CLO Ltd., 2013-2A, B, 144A, FRN, 3.562%, 04/25/25 † USA USD 1,431,001 0.141,408,000 Cent CLO LP, 2014-22A, A2AR, 144A, FRN, 2.831%, 11/07/26 † CYM USD 1,407,866 0.131,380,000 Bank of America Credit Card Trust, 2005-A1, A, FRN, 1.034%, 06/15/20 † USA USD 1,382,147 0.131,330,000 Dryden XXV Senior Loan Fund, 2012-25A, CR, 144A, FRN, 3.354%, 01/15/25 † CYM USD 1,329,827 0.131,300,000 Voya CLO Ltd., 2015-2A, B, 144A, FRN, 2.862%, 07/23/27 † CYM USD 1,302,288 0.121,360,026 Citigroup Commercial Mortgage Trust, 2006-C5, AJ, 5.482%, 10/15/49 USA USD 1,276,757 0.121,300,000 G-Force LLC, 2005-RRA, C, 144A, 5.20%, 08/22/36 USA USD 1,258,517 0.121,230,000 LCM XVII LP, 2017A, BR, 144A, FRN, 2.74%, 10/15/26 † USA USD 1,231,169 0.121,230,000 Burnham Park CLO Ltd., 2016-1A, A, 144A, FRN, 2.318%, 10/20/29 † CYM USD 1,229,828 0.121,210,000 Atrium VIII, 8A, BR, 144A, FRN, 2.782%, 10/23/24 † CYM USD 1,211,658 0.111,180,000 Citibank Credit Card Issuance Trust, 2013-A4, A4, FRN, 1.176%, 07/24/20 † USA USD 1,184,155 0.111,180,000 Ares Enhanced Loan Investment Strategy IR Ltd., 2013-IRAR, A2A, 144A, FRN,

2.782%, 07/23/25 † CYM USD 1,180,743 0.111,190,000 Cent CLO LP, 2014-22A, BR, 144A, FRN, 3.831%, 11/07/26 † CYM USD 1,180,581 0.111,176,471 Cent CLO LP, 2013-17A, B, 144A, FRN, 3.887%, 01/30/25 † USA USD 1,180,236 0.111,130,000 Banc of America Commercial Mortgage Trust, 2015-UBS7, A4, 3.705%, 09/15/48 USA USD 1,177,971 0.111,140,000 LCM XVII LP, 2017A, CR, 144A, FRN, 3.39%, 10/15/26 † USA USD 1,142,052 0.111,120,000 Citibank Credit Card Issuance Trust, 2013-A2, A2, FRN, 1.036%, 05/26/20 † USA USD 1,121,445 0.111,070,000 LCM XVI LP, 16A, B, 144A, FRN, 2.88%, 07/15/26 † CYM USD 1,067,427 0.101,055,207 JPMorgan Chase Commercial Mortgage Securities Trust, 2006-CB17, AM, 5.464%,

12/12/43 USA USD 1,054,898 0.101,000,000 Banc of America Commercial Mortgage Trust, 2015-UBS7, A3, 3.441%, 09/15/48 USA USD 1,024,571 0.101,000,000 Mountain View CLO II Ltd., 2006-2A, C, 144A, FRN, 1.574%, 01/12/21 † USA USD 978,760 0.09

919,075 FHLMC, 4.00%, 08/01/46 USA USD 965,915 0.09950,000 Cole Park CLO Ltd., 15-1A, B, 144A, FRN, 3.131%, 10/20/28 † CYM USD 953,073 0.09950,000 Dryden 33 Senior Loan Fund, 2014-33A, CR, 144A, FRN, 3.286%, 10/15/28 † USA USD 951,910 0.09967,674 Opteum Mortgage Acceptance Corp. Trust, 2005-4, 1APT, FRN, 1.066%,

11/25/35 † USA USD 919,774 0.09952,391 Structured Asset Mortgage Investments Trust, 2003-AR2, A1, FRN, 1.476%,

12/19/33 † USA USD 917,937 0.09912,800 Eaton Vance CDO Ltd., 2014-1A, B, 144A, FRN, 2.93%, 07/15/26 † USA USD 910,664 0.09860,000 Flagship CLO VIII Ltd., 2014-8A, A, 144A, FRN, 2.44%, 01/16/26 † CYM USD 858,779 0.08830,000 Galaxy CLO Ltd., 2014-17A, C1R, 144A, FRN, 3.28%, 07/15/26 † CYM USD 824,186 0.08800,000 Dryden 34 Senior Loan Fund, 2014-34A, B, 144A, FRN, 2.78%, 10/15/26 † CYM USD 801,656 0.08800,000 Chase Issuance Trust, 2012-A10, A10, FRN, 0.964%, 12/16/19 † USA USD 801,009 0.08704,837 Structured Asset Securities Corp., 2005-2XS, 2A2, FRN, 2.084%, 02/25/35 † USA USD 676,176 0.06688,103 MortgageIT Trust, 2004-1, A2, FRN, 1.656%, 11/25/34 † USA USD 656,362 0.06640,000 Octagon Investment Partners XXIII Ltd., 2015-1A, B, 144A, FRN, 2.88%,

07/15/27 † CYM USD 640,806 0.06569,921 FNMA, 5.00%, 08/01/40 USA USD 623,410 0.06620,000 Capital One Multi-Asset Execution Trust, 2014-A3, A3, FRN, 1.084%, 01/18/22 † USA USD 620,560 0.06570,132 FNMA, 4.50%, 05/01/41 USA USD 615,878 0.06603,507 MortgageIT Trust, 2005-5, A1, FRN, 1.016%, 12/25/35 † USA USD 561,515 0.05564,276 Merrill Lynch Mortgage Investors Trust, 2005-A6, 2A3, FRN, 1.136%, 08/25/35 † USA USD 545,913 0.05561,331 Thornburg Mortgage Securities Trust, 2005-2, A1, FRN, 2.685%, 07/25/45 † USA USD 543,444 0.05592,822 Impac Secured Assets Trust, 2007-2, FRN, 1.006%, 04/25/37 † USA USD 540,949 0.05500,000 Cumberland Park CLO Ltd., 2015-2A, C, 144A, FRN, 3.731%, 07/20/26 † USA USD 499,165 0.05446,469 CIFC Funding Ltd., 2007-3A, A1J, 144A, FRN, 1.284%, 07/26/21 † USA USD 446,152 0.04444,811 FNMA, 2.50%, 06/01/27 USA USD 446,101 0.04380,000 Voya CLO Ltd., 2013-1A, B, 144A, FRN, 3.78%, 04/15/24 † USA USD 380,859 0.04334,300 Eaton Vance CDO Ltd., 2014-1A, C, 144A, FRN, 3.88%, 07/15/26 † USA USD 335,955 0.03146,406 FHLMC, 5.00%, 05/01/41 USA USD 159,641 0.02142,548 FNMA, 5.50%, 07/01/38 USA USD 158,776 0.02140,226 FHLMC, 4.50%, 09/01/40 USA USD 151,326 0.01122,937 FHLMC, 4.50%, 10/01/40 USA USD 132,336 0.01

86,257 Wells Fargo Mortgage Backed Securities Trust, 2004-W, A9, FRN, 3.004%,11/25/34 † USA USD 87,487 0.01

88,014 Cent CDO Ltd., 2007-15A, A2B, 144A, FRN, 1.293%, 03/11/21 † USA USD 85,812 0.0182,258 FNMA, 3.50%, 02/01/26 USA USD 85,806 0.0177,360 FHLMC, 5.00%, 03/01/28 USA USD 84,426 0.0176,192 FNMA, 5.00%, 02/01/40 USA USD 84,140 0.0177,395 FNMA, 5.50%, 09/01/23 USA USD 82,934 0.0169,730 FNMA, 5.50%, 02/01/38 USA USD 77,477 0.0150,324 FNMA, 6.00%, 05/01/38 USA USD 56,977 0.0152,804 Westchester CLO Ltd., 2007-1A, A1A, 144A, FRN, 1.111%, 08/01/22 † USA USD 52,703 0.0129,554 FNMA, 5.50%, 02/01/38 USA USD 33,039 0.0026,033 GNMA, SF, 5.50%, 06/15/38 USA USD 29,776 0.0025,388 FNMA, 6.00%, 11/01/36 USA USD 28,739 0.0024,055 FNMA, 6.00%, 02/01/37 USA USD 27,230 0.0021,972 FHLMC, 6.00%, 08/01/37 USA USD 25,250 0.0021,387 FHLMC, 6.00%, 11/01/37 USA USD 24,260 0.00






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Asset-Backed Securities (continued)23,425 Wells Fargo Mortgage Backed Securities Trust, 2007-3, 3A1, 5.50%, 04/25/22 USA USD 24,002 0.0021,383 FNMA, 5.50%, 07/01/37 USA USD 23,895 0.0021,037 FNMA, 5.50%, 03/01/34 USA USD 23,598 0.0019,046 FNMA, 6.00%, 11/01/37 USA USD 21,575 0.0018,048 FNMA, 6.00%, 12/01/37 USA USD 20,445 0.0019,236 FNMA, 4.50%, 05/01/24 USA USD 20,339 0.0017,257 FHLMC, 6.00%, 01/01/38 USA USD 19,506 0.0015,917 FNMA, 5.50%, 12/01/37 USA USD 17,754 0.0015,458 FNMA, 6.00%, 12/01/36 USA USD 17,498 0.0015,074 FHLMC, 5.50%, 11/01/37 USA USD 16,807 0.0014,707 FHLMC, 5.50%, 11/01/38 USA USD 16,297 0.0012,337 FNMA, 6.50%, 08/01/36 USA USD 14,283 0.0010,451 FNMA, 6.00%, 05/01/36 USA USD 11,852 0.00

9,366 FNMA, 5.50%, 04/01/38 USA USD 10,467 0.008,710 FNMA, 5.00%, 05/01/28 USA USD 9,485 0.008,657 GNMA, SF, 5.00%, 06/15/37 USA USD 9,468 0.007,669 FNMA, 5.50%, 06/01/38 USA USD 8,521 0.006,934 FNMA, 6.50%, 10/01/37 USA USD 8,059 0.007,068 FNMA, 5.00%, 02/01/27 USA USD 7,698 0.007,198 FNMA, 4.50%, 09/01/24 USA USD 7,637 0.006,986 FNMA, 5.00%, 07/01/40 USA USD 7,615 0.006,385 FNMA, 5.50%, 06/01/37 USA USD 7,135 0.006,579 FNMA, 5.00%, 07/01/23 USA USD 7,031 0.006,336 FHLMC, 5.50%, 03/01/23 USA USD 6,838 0.005,821 FHLMC, 5.50%, 05/01/22 USA USD 6,230 0.005,051 FNMA, 6.50%, 11/01/36 USA USD 5,719 0.004,602 FHLMC, 5.50%, 05/01/37 USA USD 5,133 0.004,093 FNMA, 6.00%, 05/01/38 USA USD 4,640 0.004,202 FHLMC, 5.00%, 02/01/23 USA USD 4,500 0.003,737 FNMA, 4.50%, 07/01/23 USA USD 3,842 0.003,285 FNMA, 5.00%, 01/01/24 USA USD 3,493 0.002,506 FHLMC, 6.00%, 02/01/39 USA USD 2,837 0.002,493 FHLMC, 6.00%, 11/01/37 USA USD 2,830 0.002,582 FNMA, 5.00%, 12/01/23 USA USD 2,759 0.001,989 FNMA, 6.50%, 10/01/37 USA USD 2,305 0.002,054 FNMA, 5.50%, 11/01/36 USA USD 2,283 0.001,162 FNMA, 5.00%, 11/01/22 USA USD 1,239 0.00

921 FNMA, 5.50%, 09/01/23 USA USD 931 0.00

235,612,262 22.28

Corporate Bonds9,500,000 Bank of America Corp., senior note, 3.50%, 04/19/26 USA USD 9,378,352 0.896,300,000 Morgan Stanley, senior note, 3.875%, 01/27/26 USA USD 6,366,919 0.606,000,000 Nippon Life Insurance Co., sub. bond, 144A, 5.10% to 10/16/24, FRN thereafter,

10/16/44 JPN USD 6,199,200 0.595,200,000 Baxalta Inc., senior note, 4.00%, 06/23/25 USA USD 5,217,628 0.495,000,000 Walgreens Boots Alliance Inc., senior note, 3.80%, 11/18/24 USA USD 5,091,130 0.485,000,000 Sprint Communications Inc., senior note, 6.00%, 11/15/22 USA USD 5,050,000 0.485,000,000 Wells Fargo & Co., junior sub. bond, S, 5.90% to 06/15/24, FRN thereafter,

Perpetual USA USD 5,031,250 0.485,000,000 Marriott International Inc., senior bond, 3.75%, 10/01/25 USA USD 5,009,150 0.475,000,000 INVISTA Finance LLC, senior secured note, 144A, 4.25%, 10/15/19 USA USD 4,972,715 0.475,000,000 The Goldman Sachs Group Inc., senior note, 3.50%, 01/23/25 USA USD 4,935,805 0.475,000,000 Wells Fargo & Co., senior note, 3.00%, 04/22/26 USA USD 4,770,155 0.455,000,000 EDF SA, sub. note, 144A, 5.25% to 01/29/23, FRN thereafter, Perpetual FRA USD 4,735,225 0.454,500,000 The Chemours Co., senior note, 6.625%, 05/15/23 USA USD 4,477,500 0.425,000,000 InterGen NV, secured bond, 144A, 7.00%, 06/30/23 NLD USD 4,475,000 0.424,500,000 Citigroup Inc., senior note, 3.40%, 05/01/26 USA USD 4,374,801 0.414,000,000 CIT Group Inc., senior note, 5.00%, 08/15/22 USA USD 4,180,000 0.404,000,000 Equinix Inc., senior bond, 5.375%, 04/01/23 USA USD 4,170,000 0.393,700,000 Energy Transfer Equity LP, senior note, first lien, 7.50%, 10/15/20 USA USD 4,144,000 0.393,900,000 Millicom International Cellular SA, senior note, 144A, 6.625%, 10/15/21 LUX USD 4,109,625 0.394,000,000 Fiat Chrysler Automobiles NV, senior note, 5.25%, 04/15/23 GBR USD 4,092,460 0.394,000,000 Actavis Funding SCS, senior bond, 3.80%, 03/15/25 USA USD 4,006,600 0.384,000,000 Martin Midstream Partners LP/Martin Midstream Finance Corp., senior note, 7.25%,

02/15/21 USA USD 3,970,000 0.385,500,000 BreitBurn Energy Partners LP/BreitBurn Finance Corp., senior bond, 7.875%,

04/15/22 * USA USD 3,932,500 0.373,900,000 The Southern Co., senior bond, 3.25%, 07/01/26 USA USD 3,797,664 0.363,500,000 Netflix Inc., senior bond, 5.875%, 02/15/25 USA USD 3,784,375 0.364,000,000 Freeport-McMoRan Inc., senior note, 4.55%, 11/14/24 USA USD 3,770,000 0.363,500,000 T-Mobile USA Inc., senior bond, 6.375%, 03/01/25 USA USD 3,749,375 0.353,600,000 First Data Corp., second lien, 144A, 5.75%, 01/15/24 USA USD 3,728,268 0.353,500,000 Citigroup Inc., senior note, 3.875%, 10/25/23 USA USD 3,607,768 0.343,500,000 MetLife Inc., senior note, 3.60%, 04/10/24 USA USD 3,592,088 0.343,500,000 Gaz Capital SA, (OJSC Gazprom), loan participation, senior note, 144A, 3.85%,

02/06/20 RUS USD 3,559,202 0.343,000,000 Western Digital Corp., senior note, 144A, 10.50%, 04/01/24 USA USD 3,555,000 0.343,000,000 Verizon Communications Inc., senior note, 5.15%, 09/15/23 USA USD 3,318,504 0.313,400,000 Capital One Financial Corp., senior note, 3.20%, 02/05/25 USA USD 3,296,963 0.313,000,000 Wind Acquisition Finance SA, senior note, Reg S, 7.00%, 04/23/21 ITA EUR 3,291,576 0.31






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Corporate Bonds (continued)3,200,000 Owens-Brockway Glass Container Inc., senior note, 144A, 5.00%, 01/15/22 USA USD 3,284,000 0.313,000,000 ArcelorMittal, senior note, 6.50%, 03/01/21 FRA USD 3,278,550 0.313,000,000 CSC Holdings LLC, senior note, 6.75%, 11/15/21 USA USD 3,232,500 0.313,000,000 International Game Technology PLC, senior secured bond, 144A, 6.50%, 02/15/25 USA USD 3,232,500 0.313,200,000 LUKOIL International Finance BV, senior note, 144A, 4.563%, 04/24/23 RUS USD 3,226,672 0.302,900,000 Qorvo Inc., senior bond, 7.00%, 12/01/25 USA USD 3,226,250 0.303,200,000 Hughes Satellite Systems Corp., senior bond, 144A, 6.625%, 08/01/26 USA USD 3,224,000 0.303,000,000 Gannett Co. Inc., senior bond, 6.375%, 10/15/23 USA USD 3,185,700 0.303,000,000 Post Holdings Inc., senior note, 144A, 6.00%, 12/15/22 USA USD 3,146,250 0.303,000,000 1011778 BC ULC/New Red Finance Inc., secured note, second lien, 144A, 6.00%,

04/01/22 CAN USD 3,142,500 0.303,000,000 LYB International Finance BV, senior note, 4.00%, 07/15/23 USA USD 3,139,560 0.303,300,000 American Tower Corp., senior bond, 3.375%, 10/15/26 USA USD 3,125,806 0.303,100,000 Imperial Brands Finance PLC, senior note, 144A, 3.50%, 02/11/23 GBR USD 3,110,963 0.293,300,000 BMC Software Finance Inc., senior note, 144A, 8.125%, 07/15/21 USA USD 3,099,937 0.293,000,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, 5.375%,

05/01/25 USA USD 3,097,500 0.293,000,000 Exelon Corp., senior bond, 3.95%, 06/15/25 USA USD 3,085,560 0.293,000,000 PBF Holding Co. LLC, first lien, 8.25%, 02/15/20 USA USD 3,078,750 0.293,200,000 Apache Corp., senior bond, 2.625%, 01/15/23 USA USD 3,078,189 0.293,000,000 JPMorgan Chase & Co., sub. note, 3.875%, 09/10/24 USA USD 3,036,861 0.293,100,000 Ford Motor Credit Co. LLC, senior note, 3.096%, 05/04/23 USA USD 2,994,712 0.283,000,000 AT&T Inc., senior bond, 3.40%, 05/15/25 USA USD 2,892,870 0.273,100,000 Time Warner Inc., senior bond, 2.95%, 07/15/26 USA USD 2,889,308 0.272,700,000 Cortes NP Acquisition Corp., senior note, 144A, 9.25%, 10/15/24 USA USD 2,875,500 0.272,800,000 FedEx Corp., senior bond, 3.25%, 04/01/26 USA USD 2,782,268 0.263,000,000 Digicel Group Ltd., senior note, 144A, 6.00%, 04/15/21 BMU USD 2,722,500 0.262,900,000 Dynegy Inc., senior note, 144A, 8.00%, 01/15/25 USA USD 2,718,750 0.262,400,000 Ceramtec Group GmbH, senior note, Reg S, 8.25%, 08/15/21 DEU EUR 2,703,767 0.262,500,000 Jaguar Holding Co. II/Pharmaceutical Product Development LLC, senior note, 144A,

6.375%, 08/01/23 USA USD 2,681,250 0.252,700,000 Tenet Healthcare Corp., senior note, 5.50%, 03/01/19 USA USD 2,666,250 0.252,500,000 HCA Inc., senior bond, 5.875%, 05/01/23 USA USD 2,662,500 0.252,500,000 Regency Energy Partners LP/Regency Energy Finance Corp., senior note, 5.00%,

10/01/22 USA USD 2,649,707 0.252,600,000 Wynn Macau Ltd., senior note, 144A, 5.25%, 10/15/21 MAC USD 2,632,500 0.252,800,000 Kraft Heinz Foods Co., senior bond, 3.00%, 06/01/26 USA USD 2,630,172 0.252,600,000 The Goldman Sachs Group Inc., senior note, 3.75%, 02/25/26 USA USD 2,608,957 0.252,000,000 Virgin Media Finance PLC, senior bond, Reg S, 6.375%, 10/15/24 GBR GBP 2,608,479 0.252,500,000 Unitymedia KabelBW GmbH, senior bond, 144A, 6.125%, 01/15/25 DEU USD 2,581,250 0.242,500,000 Biogen Inc., senior note, 3.625%, 09/15/22 USA USD 2,566,637 0.242,500,000 CenturyLink Inc., senior bond, 6.75%, 12/01/23 USA USD 2,565,625 0.242,400,000 CommScope Technologies Finance LLC, senior bond, 144A, 6.00%, 06/15/25 USA USD 2,556,000 0.242,500,000 Barminco Finance Pty. Ltd., senior note, 144A, 9.00%, 06/01/18 AUS USD 2,553,125 0.242,500,000 Virgin Media Secured Finance PLC, senior secured bond, first lien, 144A, 5.50%,

01/15/25 GBR USD 2,546,875 0.242,600,000 JPMorgan Chase & Co., senior bond, 3.20%, 06/15/26 USA USD 2,544,087 0.242,500,000 Cemex SAB de CV, first lien, 144A, 5.70%, 01/11/25 MEX USD 2,536,463 0.242,500,000 DaVita Inc., senior bond, 5.125%, 07/15/24 USA USD 2,498,438 0.242,500,000 CONSOL Energy Inc., senior note, 5.875%, 04/15/22 USA USD 2,462,500 0.232,400,000 Anheuser-Busch InBev Finance Inc., senior note, 3.30%, 02/01/23 BEL USD 2,443,313 0.232,500,000 Navient Corp., senior note, 6.125%, 03/25/24 USA USD 2,440,625 0.233,500,000 Intelsat Jackson Holdings SA, senior bond, 5.50%, 08/01/23 LUX USD 2,380,000 0.222,300,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

6.00%, 06/30/21 LUX USD 2,348,875 0.222,300,000 Hanesbrands Inc., senior bond, 144A, 4.875%, 05/15/26 USA USD 2,259,750 0.212,200,000 Altice U.S. Finance I Corp., senior secured bond, 144A, 5.50%, 05/15/26 USA USD 2,249,500 0.213,000,000 iHeartCommunications Inc., senior secured bond, first lien, 9.00%, 03/01/21 USA USD 2,231,250 0.212,100,000 Steel Dynamics Inc., senior bond, 5.50%, 10/01/24 USA USD 2,231,250 0.212,200,000 First Quantum Minerals Ltd., senior note, 144A, 7.00%, 02/15/21 CAN USD 2,199,120 0.212,100,000 DISH DBS Corp., senior note, 5.875%, 11/15/24 USA USD 2,168,775 0.202,000,000 Sabine Pass Liquefaction LLC, first lien, 5.625%, 04/15/23 USA USD 2,135,000 0.202,000,000 Royal Bank of Scotland Group PLC, sub. note, 6.125%, 12/15/22 GBR USD 2,127,040 0.202,000,000 Sirius XM Radio Inc., senior bond, 144A, 6.00%, 07/15/24 USA USD 2,095,000 0.202,000,000 Kinder Morgan Finance Co. LLC, senior secured note, 144A, 6.00%, 01/15/18 USA USD 2,082,690 0.202,000,000 JBS USA LLC/Finance Inc., senior bond, 144A, 5.875%, 07/15/24 USA USD 2,075,000 0.202,000,000 Sealed Air Corp., senior bond, 144A, 5.125%, 12/01/24 USA USD 2,065,000 0.202,000,000 HCA Inc., senior secured note, first lien, 5.00%, 03/15/24 USA USD 2,062,500 0.192,000,000 Time Warner Cable LLC, senior note, 4.00%, 09/01/21 USA USD 2,054,164 0.192,000,000 Sempra Energy, senior note, 3.75%, 11/15/25 USA USD 2,021,278 0.192,000,000 JPMorgan Chase & Co., junior sub. bond, R, 6.00% to 08/01/23, FRN thereafter,

Perpetual USA USD 2,012,500 0.192,000,000 Wells Fargo & Co., senior note, 2.60%, 07/22/20 USA USD 2,011,126 0.192,400,000 Endo Finance LLC/Endo Ltd./Endo Finco Inc., senior bond, 144A, 6.00%, 02/01/25 USA USD 2,010,000 0.192,100,000 CenturyLink Inc., senior bond, 5.625%, 04/01/25 USA USD 2,002,875 0.192,000,000 Sirius XM Radio Inc., senior bond, 144A, 5.375%, 04/15/25 USA USD 1,995,000 0.192,000,000 JPMorgan Chase & Co., sub. note, 3.375%, 05/01/23 USA USD 1,993,596 0.192,000,000 Woodside Finance Ltd., senior note, 144A, 3.70%, 09/15/26 AUS USD 1,956,856 0.182,000,000 Calpine Corp., senior bond, 5.75%, 01/15/25 USA USD 1,940,000 0.181,900,000 Clear Channel Worldwide Holdings Inc., senior sub. note, 7.625%, 03/15/20 USA USD 1,905,928 0.18






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Corporate Bonds (continued)1,800,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 5.00%,

10/01/21 NLD USD 1,894,563 0.181,800,000 Toll Brothers Finance Corp., senior bond, 5.625%, 01/15/24 USA USD 1,876,500 0.181,900,000 DaVita Inc., senior bond, 5.00%, 05/01/25 USA USD 1,873,875 0.182,000,000 Home Depot Inc., senior note, 2.125%, 09/15/26 USA USD 1,844,294 0.171,900,000 The Procter & Gamble Co., senior note, 2.45%, 11/03/26 USA USD 1,820,196 0.171,800,000 Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%,

03/01/25 USA USD 1,790,100 0.173,933,000 CHC Helicopter SA, senior secured note, first lien, 9.25%, 10/15/20 * CAN USD 1,769,457 0.171,800,000 JPMorgan Chase & Co., senior bond, 3.30%, 04/01/26 USA USD 1,768,142 0.171,700,000 Weatherford International Ltd., senior note, 8.25%, 06/15/23 USA USD 1,734,000 0.162,300,000 iHeartCommunications Inc., senior secured note, first lien, 9.00%, 09/15/22 USA USD 1,699,125 0.161,700,000 The Goodyear Tire & Rubber Co., senior bond, 5.00%, 05/31/26 USA USD 1,696,498 0.161,700,000 Teva Pharmaceutical Finance Netherlands IV BV, senior note, 0.50%, 07/28/22 ISR CHF 1,685,394 0.161,600,000 Steel Dynamics Inc., senior note, 5.125%, 10/01/21 USA USD 1,676,704 0.162,293,016 EnQuest PLC, 144A, PIK, 7.00%, 04/15/22 ‡ GBR USD 1,673,902 0.161,800,000 Kroger Co., senior bond, 2.65%, 10/15/26 USA USD 1,673,258 0.161,600,000 Infor (U.S.) Inc., senior note, 6.50%, 05/15/22 USA USD 1,672,000 0.161,500,000 Citigroup Inc., sub. bond, 5.50%, 09/13/25 USA USD 1,649,291 0.161,500,000 Energy Transfer Partners LP, senior note, 5.20%, 02/01/22 USA USD 1,606,349 0.151,500,000 KB Home, senior note, 7.00%, 12/15/21 USA USD 1,593,750 0.151,500,000 KB Home, senior bond, 7.50%, 09/15/22 USA USD 1,590,000 0.151,600,000 Calpine Corp., senior note, 5.375%, 01/15/23 USA USD 1,572,000 0.152,000,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.625%, 12/01/21 USA USD 1,560,000 0.151,500,000 Sealed Air Corp., senior note, 144A, 4.875%, 12/01/22 USA USD 1,546,875 0.151,500,000 Meritor Inc., senior note, 6.75%, 06/15/21 USA USD 1,541,250 0.151,500,000 KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, senior note,

144A, 5.00%, 06/01/24 USA USD 1,535,625 0.151,500,000 JBS USA LLC/Finance Inc., senior note, 144A, 5.75%, 06/15/25 USA USD 1,526,250 0.141,500,000 KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, senior note,

144A, 5.25%, 06/01/26 USA USD 1,526,250 0.141,400,000 Cheniere Corpus Christi Holdings LLC, senior secured note, 144A, 7.00%,

06/30/24 USA USD 1,522,500 0.141,500,000 HCA Inc., senior bond, 5.375%, 02/01/25 USA USD 1,505,625 0.141,500,000 Morgan Stanley, sub. bond, 3.95%, 04/23/27 USA USD 1,485,702 0.141,500,000 Sanchez Energy Corp., senior note, 6.125%, 01/15/23 USA USD 1,432,500 0.141,400,000 Prudential Financial Inc., 3.50%, 05/15/24 USA USD 1,429,589 0.141,500,000 Tenet Healthcare Corp., senior note, 8.125%, 04/01/22 USA USD 1,422,750 0.131,400,000 Weatherford International Ltd., senior note, 7.75%, 06/15/21 USA USD 1,419,250 0.132,000,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 1,400,000 0.131,300,000 Glencore Finance Canada Ltd., senior bond, 144A, 4.95%, 11/15/21 CHE USD 1,392,505 0.131,300,000 Teva Pharmaceutical Finance Netherlands II BV, senior note, Reg S, 0.375%,

07/25/20 ISR EUR 1,359,687 0.131,518,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%,

12/15/22 USA USD 1,358,610 0.131,500,000 Chaparral Energy Inc., senior bond, 8.25%, 09/01/21 * USA USD 1,353,750 0.131,300,000 Valvoline Inc., senior note, 144A, 5.50%, 07/15/24 USA USD 1,348,750 0.131,300,000 Navistar International Corp., senior bond, 8.25%, 11/01/21 USA USD 1,319,500 0.121,300,000 United Airlines Pass Through Trust, second lien, 2016-1, A, 3.45%, 01/07/30 USA USD 1,265,875 0.121,100,000 Lincoln Finance Ltd., senior secured note, Reg S, 6.875%, 04/15/21 NLD EUR 1,259,852 0.121,213,777 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, senior note, 8.25%, 02/15/21 USA USD 1,253,583 0.121,300,000 Transurban Finance Co. Pty. Ltd., 144A, 3.375%, 03/22/27 AUS USD 1,229,054 0.121,200,000 Cheniere Corpus Christi Holdings LLC, first lien, senior secured note, 144A,

5.875%, 03/31/25 USA USD 1,228,872 0.121,300,000 Dominion Resources Inc., senior bond, 2.85%, 08/15/26 USA USD 1,217,779 0.121,200,000 Sempra Energy, senior bond, 3.55%, 06/15/24 USA USD 1,214,933 0.111,200,000 First Quantum Minerals Ltd., senior note, 144A, 6.75%, 02/15/20 CAN USD 1,203,000 0.111,200,000 21st Century Fox America Inc., senior note, 3.00%, 09/15/22 USA USD 1,194,583 0.111,100,000 MPH Acquisition Holdings LLC, senior note, 144A, 7.125%, 06/01/24 USA USD 1,160,610 0.111,500,000 CHS/Community Health Systems Inc., senior note, 7.125%, 07/15/20 USA USD 1,147,950 0.111,500,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.50%, 03/01/23 USA USD 1,132,500 0.111,000,000 Post Holdings Inc., senior note, 144A, 7.75%, 03/15/24 USA USD 1,115,000 0.11

972,000 Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, senior secured bond,first lien, Reg S, 5.75%, 01/15/23 DEU EUR 1,098,620 0.10

1,000,000 Sabine Pass Liquefaction LLC, senior secured note, first lien, 5.75%, 05/15/24 USA USD 1,077,500 0.101,000,000 T-Mobile USA Inc., senior bond, 6.50%, 01/15/24 USA USD 1,075,000 0.101,000,000 Wind Acquisition Finance SA, senior secured note, Reg S, 4.00%, 07/15/20 ITA EUR 1,074,301 0.101,000,000 Sabine Pass Liquefaction LLC, senior secured note, first lien, 5.625%, 03/01/25 USA USD 1,073,750 0.101,000,000 Citigroup Inc., sub. note, 4.05%, 07/30/22 USA USD 1,035,169 0.101,000,000 United Rentals North America Inc., senior bond, 5.875%, 09/15/26 USA USD 1,033,750 0.101,000,000 CONSOL Energy Inc., senior note, 8.00%, 04/01/23 USA USD 1,031,250 0.101,000,000 Cemex SAB de CV, senior secured bond, first lien, 144A, 6.125%, 05/05/25 MEX USD 1,029,650 0.101,000,000 Glencore Funding LLC, senior note, 144A, 4.625%, 04/29/24 CHE USD 1,026,250 0.101,000,000 Fiserv Inc., senior bond, 3.85%, 06/01/25 USA USD 1,017,513 0.101,000,000 JPMorgan Chase & Co., senior note, 3.25%, 09/23/22 USA USD 1,010,954 0.101,150,000 Linn Energy LLC/Finance Corp., senior secured note, second lien, 144A, 12.00%,

12/15/20 * USA USD 1,009,125 0.101,000,000 Glencore Funding LLC, senior note, 144A, 4.125%, 05/30/23 CHE USD 1,007,746 0.101,000,000 Lamb Weston Holdings Inc., senior note, 144A, 4.625%, 11/01/24 USA USD 1,005,000 0.091,000,000 Nextstar Escrow Corp., senior note, 144A, 5.625%, 08/01/24 USA USD 995,000 0.091,000,000 Lamb Weston Holdings Inc., senior note, 144A, 4.875%, 11/01/26 USA USD 991,875 0.09






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Corporate Bonds (continued)2,100,000 CGG SA, senior note, 6.50%, 06/01/21 FRA USD 976,500 0.091,100,000 Tenet Healthcare Corp., senior note, 6.75%, 06/15/23 USA USD 970,750 0.09

900,000 Ziggo Secured Finance BV, senior secured note, Reg S, 4.25%, 01/15/27 NLD EUR 949,267 0.091,000,000 Chaparral Energy Inc., senior note, 9.875%, 10/01/20 * USA USD 905,000 0.091,000,000 Chaparral Energy Inc., senior bond, 7.625%, 11/15/22 * USA USD 900,000 0.08

800,000 Navient Corp., senior note, 6.625%, 07/26/21 USA USD 848,000 0.08800,000 T-Mobile USA Inc., senior note, 6.00%, 04/15/24 USA USD 845,000 0.08800,000 Cemex Finance LLC, senior secured note, first lien, 144A, 6.00%, 04/01/24 MEX USD 827,100 0.08800,000 Stryker Corp., senior bond, 3.50%, 03/15/26 USA USD 807,967 0.08600,000 Bank of America Corp., senior note, 7.75%, 04/30/18 USA GBP 805,926 0.08

1,032,549 W&T Offshore Inc., second lien, 144A, PIK, 10.75%, 05/15/20 ‡ USA USD 795,063 0.08750,000 Bank of America Corp., senior note, 5.65%, 05/01/18 USA USD 785,963 0.07700,000 TransDigm Inc., senior sub. bond, 6.50%, 07/15/24 USA USD 735,875 0.07700,000 Calpine Corp., senior secured bond, first lien, 144A, 5.875%, 01/15/24 USA USD 733,250 0.07700,000 TransDigm Inc., senior sub. note, 6.00%, 07/15/22 USA USD 731,500 0.07640,000 Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, senior secured bond,

first lien, Reg S, 5.625%, 04/15/23 DEU EUR 724,321 0.07700,000 TransDigm Inc., senior sub. bond, 144A, 6.375%, 06/15/26 USA USD 722,400 0.07700,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, first lien, 144A, 5.125%, 07/15/23 USA USD 712,250 0.07800,000 Endo Finance LLC/Endo Ltd./Endo Finco Inc., senior note, 144A, 6.00%, 07/15/23 USA USD 706,000 0.07700,000 MPT Operating Partnership LP/MPT Finance Corp., senior bond, 5.25%, 08/01/26 USA USD 687,750 0.06600,000 Sealed Air Corp., senior bond, 144A, 5.50%, 09/15/25 USA USD 621,000 0.06600,000 Florida East Coast Holdings Corp., senior note, 144A, 9.75%, 05/01/20 USA USD 619,500 0.06924,500 W&T Offshore Inc., senior secured note, third lien, 144A, PIK, 10.00%, 06/15/21 ‡ USA USD 554,700 0.05500,000 Kinder Morgan Inc., senior secured bond, first lien, 144A, 5.625%, 11/15/23 USA USD 549,011 0.05

1,000,000 Energy XXI Gulf Coast Inc., senior secured note, second lien, 144A, 11.00%,03/15/20 * USA USD 530,000 0.05

500,000 TransDigm Inc., senior sub. bond, 6.50%, 05/15/25 USA USD 525,625 0.05500,000 Navient Corp., senior note, 5.875%, 03/25/21 USA USD 520,625 0.05500,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

6.75%, 01/31/21 LUX USD 516,250 0.05500,000 Clear Channel Worldwide Holdings Inc., senior note, 6.50%, 11/15/22 USA USD 513,750 0.05500,000 Royal Bank of Scotland Group PLC, sub. note, 5.125%, 05/28/24 GBR USD 497,653 0.05

3,000,000 Energy XXI Gulf Coast Inc., senior note, 6.875%, 03/15/24 * USA USD 453,861 0.04400,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior note, 144A, 7.125%,

06/15/24 USA USD 444,138 0.04400,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior note, 144A, 5.875%,

06/15/21 USA USD 425,592 0.04500,000 iHeartCommunications Inc., senior secured note, first lien, 9.00%, 12/15/19 USA USD 410,625 0.04400,000 Citigroup Inc., senior note, 3.30%, 04/27/25 USA USD 392,079 0.04500,000 Digicel Group Ltd., senior note, 144A, 7.125%, 04/01/22 BMU USD 388,295 0.04400,000 Stena International SA, senior secured bond, first lien, 144A, 5.75%, 03/01/24 SWE USD 349,180 0.03400,000 CHS/Community Health Systems Inc., senior note, 8.00%, 11/15/19 USA USD 334,000 0.03

2,000,000 Edcon Ltd., senior secured note, first lien, 9.50%, 03/01/18 *,^ ZAF EUR 326,182 0.03300,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, senior note, 144A, 7.00%, 07/15/24 USA USD 319,313 0.03600,000 CGG SA, senior note, 6.875%, 01/15/22 FRA USD 279,000 0.03200,000 Kinder Morgan Inc., senior note, 6.50%, 09/15/20 USA USD 224,249 0.02200,000 Kinder Morgan Inc., senior secured note, 144A, 5.00%, 02/15/21 USA USD 213,063 0.02200,000 Axalta Coating Systems LLC, senior note, 144A, 4.875%, 08/15/24 USA USD 200,500 0.02200,000 MSCI Inc., senior note, 144A, 4.75%, 08/01/26 USA USD 198,750 0.02102,756 Vistra Energy Corp., Escrow Account USA USD 148,996 0.01100,000 Sprint Corp., senior bond, 7.125%, 06/15/24 USA USD 103,250 0.01100,000 DISH DBS Corp., senior bond, 5.00%, 03/15/23 USA USD 99,750 0.01600,000 Energy XXI Gulf Coast Inc., senior note, 7.50%, 12/15/21 * USA USD 89,454 0.01

3,000,000 Penn Virginia Corp., Escrow Account, 8.50%, 05/01/20 USA USD 75,000 0.01

469,857,030 44.43

Government and Municipal Bonds11,747,215 U.S. Treasury Note, Index Linked, 0.125%, 07/15/24 USA USD 11,548,675 1.09

317,278,432 Government of Uruguay, senior bond, Index Linked, 4.375%, 12/15/28 URY UYU 9,949,938 0.941,648,000 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 8,184,765 0.777,116,705 U.S. Treasury Bond, Index Linked, 0.625%, 01/15/24 USA USD 7,246,762 0.69

30,000,000 Government of Malaysia, 3.80%, 08/17/23 MYS MYR 6,577,664 0.625,120,000 U.S. Treasury Bond, 6.25%, 08/15/23 USA USD 6,395,597 0.61

21,000 Nota Do Tesouro Nacional, senior note, 10.00%, 01/01/19 BRA BRL 6,354,799 0.606,300,000 U.S. Treasury Note, 2.00%, 05/31/21 USA USD 6,333,799 0.60

80,000,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 6,086,472 0.585,129,205 U.S. Treasury Bond, Index Linked, 2.375%, 01/15/25 USA USD 5,892,621 0.565,075,000 Government of Serbia, senior note, Reg S, 4.875%, 02/25/20 SRB USD 5,167,949 0.49

5,500 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 5,016,908 0.475,490 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/18 BRA BRL 4,992,767 0.47

70,000,000,000 Government of Indonesia, 6.125%, 05/15/28 IDN IDR 4,390,428 0.423,025,000 U.S. Treasury Bond, 6.50%, 11/15/26 USA USD 4,091,736 0.395,850,000 Puerto Rico Electric Power Authority Power Revenue, Series A, 6.75%, 07/01/36 USA USD 3,868,312 0.373,275,000 Port Authority of New York and New Jersey Revenue, Consolidated, One Hundred

Ninety-First Series, 4.823%, 06/01/45 USA USD 3,448,804 0.333,000,000 Government of Hungary, 5.375%, 02/21/23 HUN USD 3,253,200 0.31

39,000,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 2,974,394 0.289,500 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 2,812,720 0.27

2,350,000 California State GO, Refunding, 5.00%, 09/01/29 USA USD 2,797,816 0.27






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assets

Government and Municipal Bonds (continued)9,000 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 2,607,109 0.25

2,200,000 Clark County School District GO, Refunding, Series D, 5.00%, 06/15/23 USA USD 2,566,762 0.242,000,000 Government of Serbia, Reg S, 7.25%, 09/28/21 SRB USD 2,235,290 0.212,000,000 U.S. Treasury Note, 3.75%, 11/15/18 USA USD 2,095,374 0.201,900,000 U.S. Treasury Note, 3.625%, 02/15/21 USA USD 2,038,265 0.193,000,000 Puerto Rico Electric Power Authority Power Revenue, Series XX, 5.25%, 07/01/40 USA USD 1,983,750 0.191,400,000 University of Texas Revenue, Series J, 5.00%, 08/15/25 USA USD 1,691,298 0.161,340,000 New York State Dormitory Authority State Personal Income Tax Revenue, General

Purpose, Refunding, Series A, 5.00%, 02/15/25 USA USD 1,568,390 0.1545,682,847 Government of Uruguay, senior bond, Index Linked, 5.00%, 09/14/18 URY UYU 1,539,446 0.15

1,500,000 U.S. Treasury Note, 2.00%, 10/31/21 USA USD 1,503,126 0.141,392,231 U.S. Treasury Note, Index Linked, 1.125%, 01/15/21 USA USD 1,461,415 0.141,200,000 Minnesota State GO, Refunding, Series D, 5.00%, 08/01/25 USA USD 1,459,080 0.141,100,000 Illinois State GO, Build America Bonds, 7.35%, 07/01/35 USA USD 1,191,498 0.113,904,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRN thereafter,

05/31/40 UKR USD 1,190,720 0.111,000,000 U.S. Treasury Note, 3.125%, 05/15/19 USA USD 1,042,441 0.10

900,000 U.S. Treasury Note, 3.50%, 05/15/20 USA USD 956,241 0.09750,000 New York City HDC Capital Fund Grant Program Revenue, New York City Housing

Authority Program, Series B1, 5.00%, 07/01/33 USA USD 845,385 0.08823,000 Government of Ukraine, Reg S, 7.75%, 09/01/24 UKR USD 781,850 0.07770,000 New Jersey EDA Revenue, School Facilities Construction, Refunding, Series NN,

5.00%, 03/01/30 USA USD 776,037 0.07823,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 774,756 0.07823,000 Government of Ukraine, Reg S, 7.75%, 09/01/26 UKR USD 773,620 0.07823,000 Government of Ukraine, Reg S, 7.75%, 09/01/27 UKR USD 768,855 0.07

6,470,000,000 Government of Indonesia, FR34, 12.80%, 06/15/21 IDN IDR 571,759 0.05536,218 U.S. Treasury Note, Index Linked, 0.625%, 07/15/21 USA USD 553,658 0.05

5,381,000,000 Government of Indonesia, senior bond, FR40, 11.00%, 09/15/25 IDN IDR 471,299 0.044,800,000,000 Government of Indonesia, FR36, 11.50%, 09/15/19 IDN IDR 391,141 0.04

305,000 Denver City and County Airport System Revenue, Refunding, Series A, 5.00%,11/15/25 USA USD 361,001 0.03

300,000 U.S. Treasury Bond, 9.00%, 11/15/18 USA USD 343,511 0.03323,000 Government of Ukraine, Reg S, 7.75%, 09/01/23 UKR USD 310,080 0.03200,000 U.S. Treasury Bond, 8.125%, 08/15/19 USA USD 234,576 0.02

2,776,000,000 Government of Indonesia, senior bond, FR47, 10.00%, 02/15/28 IDN IDR 232,836 0.022,126,000,000 Government of Indonesia, senior bond, FR44, 10.00%, 09/15/24 IDN IDR 175,401 0.021,278,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 105,532 0.011,132,000,000 Government of Indonesia, FR35, 12.90%, 06/15/22 IDN IDR 103,138 0.01

80,000 U.S. Treasury Bond, 7.25%, 08/15/22 USA USD 101,971 0.011,000,000,000 Government of Indonesia, senior bond, FR37, 12.00%, 09/15/26 IDN IDR 94,452 0.011,100,000,000 Government of Indonesia, senior bond, FR46, 9.50%, 07/15/23 IDN IDR 88,588 0.01

230,000,000 Government of Indonesia, senior bond, FR39, 11.75%, 08/15/23 IDN IDR 20,486 0.0016,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 1,161 0.00

153,397,424 14.51

Securities Maturing Within One Year40,600,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 9,105,315 0.86

1,750,000 Government of Mexico, senior note, M, 5.00%, 06/15/17 MEX MXN 8,393,012 0.7935,500,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 7,920,314 0.75

145,000,000 Government of the Philippines, senior note, 3-21, 2.875%, 05/22/17 PHL PHP 2,926,490 0.28582,800 Government of Mexico, 7.75%, 12/14/17 MEX MXN 2,847,783 0.27

1,500,000 Bank of America Corp., senior note, 6.40%, 08/28/17 USA USD 1,546,196 0.15990,000 U.S. Treasury Bill, 0.00%, 03/02/17 USA USD 989,243 0.09600,000 Kinder Morgan Inc., senior note, 7.00%, 06/15/17 USA USD 613,978 0.06

1,500,000 Energy XXI Gulf Coast Inc., senior note, 9.25%, 12/15/17 * USA USD 225,047 0.02200 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/17 BRA BRL 181,379 0.02

130,000 U.S. Treasury Note, 4.75%, 08/15/17 USA USD 133,200 0.01383 FNMA, 5.50%, 10/01/17 USA USD 386 0.00

34,882,343 3.30

TOTAL BONDS 893,749,059 84.52



193,203 Halcon Resources Corp. ** USA USD 1,619,079 0.15











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6,000,000 Vistra Energy Corp., Escrow Account ** USA USD 69,600 0.01150,000 Fontainebleau Las Vegas, senior secured bond, first lien, 144A, 11.00%,

06/15/15 * USA USD 15 0.001 CHC Helicopter SA, senior note, 9.375%, 06/01/21 * CAN USD 0 0.00

3,000,000 Midstates Petroleum Co. Inc./Midstates Petroleum Co. LLC, Escrow Account ** USA USD 0 0.001,500,000 NewPage Corp., Escrow Account ** USA USD 0 0.00

69,615 0.01




† Floating Rates are indicated as at December 31, 2016* These Bonds are currently in default‡ Income may be received in additional securities and/or cash^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.** These securities are submitted to a Fair Valuation






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assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESCapital Markets

135,000 Intercontinental Exchange Inc. USA USD 7,616,700 0.8584,500 MSCI Inc. USA USD 6,656,910 0.7536,000 MarketAxess Holdings Inc. USA USD 5,289,120 0.59

19,562,730 2.19

Communications Equipment96,000 Palo Alto Networks Inc. USA USD 12,004,800 1.3540,000 Quantenna Communications Inc. USA USD 725,200 0.08

12,730,000 1.43

Diversified Financial Services240,000 GTY Technology Holdings Inc., A USA USD 2,640,000 0.30

Equity Real Estate Investment Trusts (REIT’s)51,070 Equinix Inc. USA USD 18,252,929 2.04

156,000 American Tower Corp. USA USD 16,486,080 1.85

34,739,009 3.89

Health Care Equipment & Supplies81,000 DexCom Inc. USA USD 4,835,700 0.54

Internet & Direct Marketing Retail42,500 Amazon.com Inc. USA USD 31,869,475 3.57

105,000 Expedia Inc. USA USD 11,894,400 1.3337,800 Netflix Inc. USA USD 4,679,640 0.53

48,443,515 5.43

Internet Software & Services293,000 Facebook Inc., A USA USD 33,709,650 3.78

34,500 Alphabet Inc., C USA USD 26,627,790 2.98260,000 Alibaba Group Holding Ltd., ADR CHN USD 22,830,600 2.56535,000 Tencent Holdings Ltd. CHN HKD 13,087,820 1.47

59,000 Baidu Inc., ADR CHN USD 9,700,190 1.0939,000 CoStar Group Inc. USA USD 7,351,110 0.82

200,000 GoDaddy Inc., A USA USD 6,990,000 0.78210,000 Alarm.com Holdings Inc. USA USD 5,844,300 0.66140,000 2U Inc. USA USD 4,221,000 0.47

19,700 Nutanix Inc., A USA USD 523,232 0.06

130,885,692 14.67

IT Services326,000 Fidelity National Information Services Inc. USA USD 24,658,640 2.76220,000 Mastercard Inc., A USA USD 22,715,000 2.54277,000 Visa Inc., A USA USD 21,611,540 2.42137,200 FleetCor Technologies Inc. USA USD 19,416,544 2.18165,000 Accenture PLC, A USA USD 19,326,450 2.16220,000 Vantiv Inc., A USA USD 13,116,400 1.47275,000 PayPal Holdings Inc. USA USD 10,854,250 1.22275,000 CSRA Inc. USA USD 8,756,000 0.98590,000 Square Inc., A USA USD 8,041,700 0.90130,000 Cognizant Technology Solutions Corp., A USA USD 7,283,900 0.82

155,780,424 17.45

Professional Services383,480 IHS Markit Ltd. USA USD 13,579,027 1.52

Semiconductors & Semiconductor Equipment377,500 Texas Instruments Inc. USA USD 27,546,175 3.09135,000 Broadcom Ltd. SGP USD 23,863,950 2.67305,000 Analog Devices Inc. USA USD 22,149,100 2.48150,000 Lam Research Corp. USA USD 15,859,500 1.78490,000 Applied Materials Inc. USA USD 15,812,300 1.77235,000 Microchip Technology Inc. USA USD 15,075,250 1.69387,500 Intel Corp. USA USD 14,054,625 1.57117,000 NVIDIA Corp. USA USD 12,488,580 1.40155,000 KLA-Tencor Corp. USA USD 12,195,400 1.37500,000 Integrated Device Technology Inc. USA USD 11,780,000 1.32187,130 Cavium Inc. USA USD 11,684,397 1.31150,000 MACOM Technology Solutions Holdings Inc. USA USD 6,942,000 0.78592,528 Lattice Semiconductor Corp. USA USD 4,361,006 0.49

193,812,283 21.72

Software526,000 Microsoft Corp. USA USD 32,685,640 3.66399,000 Salesforce.com Inc. USA USD 27,315,540 3.06338,000 ServiceNow Inc. USA USD 25,126,920 2.82218,000 Adobe Systems Inc. USA USD 22,443,100 2.52217,000 Workday Inc., A USA USD 14,341,530 1.61150,000 VMware Inc., A USA USD 11,809,500 1.32264,000 Mobileye NV ISR USD 10,063,680 1.13133,000 Autodesk Inc. USA USD 9,843,330 1.10463,500 Zendesk Inc. USA USD 9,826,200 1.10


— Franklin Technology Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Software (continued)95,000 ANSYS Inc. USA USD 8,786,550 0.98

157,000 Splunk Inc. USA USD 8,030,550 0.90283,000 Atlassian Corp. PLC AUS USD 6,814,640 0.76

81,000 Proofpoint Inc. USA USD 5,722,650 0.64112,000 Guidewire Software Inc. USA USD 5,524,960 0.62

50,000 Electronic Arts Inc. USA USD 3,938,000 0.4450,000 Red Hat Inc. USA USD 3,485,000 0.39

205,757,790 23.05


TOTAL SHARES 845,930,170 94.79

WARRANTSDiversified Financial Services

80,000 GTY Technology Holdings Inc., wts., 11/14/21 USA USD 24,000 0.00



TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESAutomobiles

496,402 Proterra Inc., pfd., 5, 144A ** USA USD 2,500,000 0.28

Hotels, Restaurants & Leisure507,330 DraftKings Inc., pfd., D-1 ** USA USD 3,182,988 0.36206,300 DraftKings Inc., pfd., D ** USA USD 933,879 0.10

4,116,867 0.46

Internet Software & Services503,700 Tanium Inc., pfd., G ** USA USD 1,791,493 0.20






— Franklin Technology Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


50,000,000 U.S. Treasury Bill, 0.00%, 01/26/17 USA USD 49,986,850 14.1634,000,000 TVA, 0.00%, 01/17/17 USA USD 33,995,104 9.6330,000,000 International Finance Corp., 0.00%, 02/08/17 SP USD 29,997,000 8.5025,000,000 FHLB, 0.00%, 01/05/17 USA USD 24,999,475 7.0825,000,000 FHLB, 0.00%, 01/11/17 USA USD 24,997,950 7.0825,000,000 FHLB, 0.00%, 01/25/17 USA USD 24,994,350 7.0821,904,000 FHLB, 0.00%, 01/03/17 USA USD 21,904,000 6.2120,000,000 Inter-American Development Bank, 0.00%, 01/09/17 SP USD 19,998,760 5.6720,000,000 Exxon Mobil Corp., zero cpn., 01/05/17 USA USD 19,998,380 5.6720,000,000 Chevron Corp., zero cpn., 01/06/17 USA USD 19,998,080 5.6718,605,000 FHLB, 0.00%, 01/17/17 USA USD 18,602,321 5.2717,065,000 U.S. Treasury Bill, 0.00%, 01/12/17 USA USD 17,063,345 4.84

8,360,000 Province of British Columbia, zero cpn., 02/15/17 CAN USD 8,354,106 2.376,000,000 FHLB, 0.00%, 02/01/17 USA USD 5,997,630 1.703,000,000 International Finance Corp., 0.00%, 01/10/17 SP USD 2,999,805 0.852,000,000 International Bank for Reconstruction & Development, 0.00%, 01/10/17 SP USD 1,999,856 0.57

325,887,012 92.35

TOTAL BONDS 325,887,012 92.35




— Franklin U.S. Dollar Liquid Reserve Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


953,740 Altice NV, A NLD EUR 18,896,379 3.88627,380 Twenty-First Century Fox Inc., B USA USD 17,096,105 3.51

35,992,484 7.39

Consumer Staples146,754 CVS Health Corp. USA USD 11,580,358 2.38

Energy316,750 Anadarko Petroleum Corp. USA USD 22,086,978 4.53215,520 Schlumberger Ltd. USA USD 18,092,904 3.71

59,920 Pioneer Natural Resources Co. USA USD 10,789,794 2.22

50,969,676 10.46

Financials549,220 The Charles Schwab Corp. USA USD 21,677,714 4.45160,900 Willis Towers Watson PLC USA USD 19,674,852 4.04384,000 The Hartford Financial Services Group Inc. USA USD 18,297,600 3.76195,470 JPMorgan Chase & Co. USA USD 16,867,106 3.46423,064 Synchrony Financial USA USD 15,344,531 3.15

31,571 BlackRock Inc. USA USD 12,014,028 2.47522,600 Bank of America Corp. USA USD 11,549,460 2.37217,000 Athene Holding Ltd., A BMU USD 10,413,830 2.14

88,300 Moody’s Corp. USA USD 8,324,041 1.71

134,163,162 27.55

Health Care127,867 Allergan PLC USA USD 26,853,349 5.51127,390 Aetna Inc. USA USD 15,797,634 3.24178,480 Medtronic PLC USA USD 12,713,130 2.61510,810 Horizon Pharma PLC USA USD 8,264,906 1.70

63,629,019 13.06

Industrials236,470 Genesee & Wyoming Inc. USA USD 16,413,383 3.37305,252 IHS Markit Ltd. USA USD 10,808,973 2.22

27,222,356 5.59

Information Technology444,855 Microsoft Corp. USA USD 27,643,290 5.68154,530 Mastercard Inc., A USA USD 15,955,222 3.28227,927 QUALCOMM Inc. USA USD 14,860,840 3.05

16,869 Alphabet Inc., C USA USD 13,019,832 2.6716,010 Alphabet Inc., A USA USD 12,687,124 2.61

439,600 Sabre Corp. USA USD 10,968,020 2.25248,400 Blackhawk Network Holdings Inc. USA USD 9,358,470 1.92108,275 Motorola Solutions Inc. USA USD 8,974,915 1.84

84,730 Adobe Systems Inc. USA USD 8,722,954 1.7928,840 Visa Inc., A USA USD 2,250,097 0.46

124,440,764 25.55

Real Estate49,904 Equinix Inc. USA USD 17,836,189 3.66

524,300 CBRE Group Inc. USA USD 16,510,207 3.39

34,346,396 7.05

TOTAL SHARES 482,344,215 99.03




— Franklin U.S. Equity Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


402,234,357 GNMA II, SF, 3.50%, 08/20/42 - 12/20/46 USA USD 418,669,358 40.6279,985,975 GNMA, SF, 5.00%, 07/15/33 - 08/15/40 USA USD 88,525,852 8.6175,300,028 GNMA II, SF, 4.50%, 05/20/33 - 10/20/44 USA USD 80,980,944 7.8871,684,069 GNMA, SF, 4.00%, 10/15/40 - 08/15/46 USA USD 76,828,532 7.4968,680,862 GNMA II, SF, 4.00%, 05/20/40 - 05/20/46 USA USD 73,368,374 7.1445,853,403 GNMA, SF, 4.50%, 03/15/39 - 04/15/41 USA USD 50,079,553 4.8831,604,847 GNMA, SF, 6.00%, 10/15/23 - 01/15/38 USA USD 36,635,403 3.5931,591,134 GNMA II, SF, 5.00%, 10/20/32 - 07/20/44 USA USD 34,726,598 3.3729,943,953 GNMA, SF, 5.50%, 11/15/28 - 11/15/39 USA USD 33,752,274 3.4028,827,183 GNMA II, SF, 3.00%, 08/20/46 - 10/20/46 USA USD 29,218,235 2.8417,188,957 GNMA II, SF, 5.50%, 05/20/34 - 01/20/36 USA USD 19,286,426 1.8814,902,791 GNMA II, SF, 6.00%, 06/20/34 - 07/20/39 USA USD 17,048,873 1.6613,356,087 GNMA, SF, 6.50%, 11/15/23 - 07/15/38 USA USD 15,339,558 1.41

5,732,233 GNMA II, SF, 6.50%, 03/20/27 - 10/20/38 USA USD 6,604,513 0.644,727,514 GNMA, SF, 7.00%, 03/15/22 - 09/15/32 USA USD 5,155,015 0.363,990,734 GNMA, SF, 3.50%, 04/15/43 - 05/15/43 USA USD 4,178,659 0.412,802,310 GNMA II, SF, 7.00%, 05/20/26 - 03/20/33 USA USD 3,305,264 0.312,017,810 GNMA, SF, 7.50%, 12/15/21 - 08/15/33 USA USD 2,275,944 0.211,526,055 GNMA, SF, 8.00%, 11/15/19 - 12/15/30 USA USD 1,670,767 0.121,321,140 GNMA II, SF, 7.50%, 08/20/22 - 09/20/32 USA USD 1,563,232 0.151,174,781 GNMA II, 6.00%, 03/20/34 - 05/20/34 USA USD 1,291,108 0.12

648,421 GNMA II, SF, 8.00%, 06/20/22 - 07/20/31 USA USD 760,991 0.06447,220 GNMA II, 6.50%, 04/20/34 USA USD 496,177 0.05378,816 GNMA, SF, 9.00%, 04/15/19 - 03/15/25 USA USD 438,269 0.04153,212 GNMA II, SF, 8.50%, 11/20/21 - 05/20/29 USA USD 179,972 0.02165,680 GNMA, 7.50%, 04/15/31 USA USD 179,285 0.02132,318 GNMA, SF, 8.50%, 05/15/18 - 06/15/28 USA USD 144,482 0.01

96,196 GNMA, SF, 10.00%, 03/15/18 - 03/15/25 USA USD 101,979 0.0076,933 GNMA, 8.00%, 01/15/31 USA USD 80,911 0.0151,577 GNMA, SF, 9.50%, 05/15/18 - 06/15/25 USA USD 52,016 0.0030,804 GNMA II, 8.00%, 03/20/27 USA USD 34,863 0.0027,192 GNMA II, SF, 9.50%, 07/20/18 - 07/20/25 USA USD 28,598 0.0012,638 GNMA, SF, 7.95%, 01/15/21 USA USD 12,686 0.0011,808 GNMA, SF, 7.80%, 02/15/20 USA USD 11,851 0.0010,971 GNMA, SF, 8.625%, 10/15/18 USA USD 11,301 0.00

8,804 GNMA, 6.00%, 11/15/28 USA USD 9,991 0.008,147 GNMA I, 9.50%, 10/15/18 - 11/15/21 USA USD 8,821 0.006,247 GNMA, SF, 7.75%, 03/15/27 USA USD 6,357 0.002,892 GNMA, SF, 10.50%, 06/15/19 - 04/15/25 USA USD 3,025 0.00

60 GNMA, SF, 11.00%, 04/15/21 USA USD 61 0.00

1,003,066,118 97.30

Securities Maturing Within One Year24,346 GNMA, SF, 8.50%, 01/15/17 - 11/15/17 USA USD 24,407 0.00

9,709 GNMA II, SF, 9.50%, 09/20/17 - 10/20/17 USA USD 9,798 0.007,056 GNMA, SF, 8.00%, 01/15/17 - 12/15/17 USA USD 7,075 0.004,328 GNMA, SF, 10.00%, 07/15/17 - 12/15/17 USA USD 4,345 0.001,999 GNMA, SF, 7.50%, 02/15/17 - 06/15/17 USA USD 2,002 0.00

811 GNMA II, 8.00%, 05/20/17 USA USD 812 0.00637 GNMA, SF, 10.50%, 12/15/17 USA USD 640 0.00517 GNMA II, SF, 7.50%, 12/20/17 USA USD 520 0.00423 GNMA, SF, 9.50%, 09/15/17 - 10/15/17 USA USD 427 0.00

84 GNMA, SF, 9.00%, 11/15/17 USA USD 84 0.0011 GNMA, SF, 11.00%, 08/15/17 USA USD 11 0.00

50,121 0.00

TOTAL BONDS 1,003,116,239 97.30




— Franklin U.S. Government Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGWARRANTSOil, Gas & Consumable Fuels





7,200,000 Limerock CLO III LLC, 2014-3A, B, 144A, FRN, 4.081%, 10/20/26 † USA USD 7,211,376 0.886,000,000 Atrium IX, 9A, C, 144A, FRN, 4.187%, 02/28/24 † USA USD 6,009,960 0.735,770,000 Cumberland Park CLO Ltd., 2015-2A, B, 144A, FRN, 2.981%, 07/20/26 † USA USD 5,793,484 0.705,279,871 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQA1, M2, FRN,

3.406%, 03/25/28 † USA USD 5,388,356 0.665,220,000 Birchwood Park CLO Ltd., 2014-1A, B1, 144A, FRN, 3.03%, 07/15/26 † USA USD 5,278,099 0.644,962,625 NZCG Funding Ltd., 2015-2A, A1, 144A, FRN, 2.436%, 04/27/27 † USA USD 4,969,970 0.604,740,000 Ares IIIR/IVR CLO Ltd., 2007-3RA, B, 144A, FRN, 1.25%, 04/16/21 † USA USD 4,718,149 0.574,600,000 West CLO Ltd., 2014-1A, B, 144A, FRN, 3.732%, 07/18/26 † USA USD 4,558,232 0.554,356,969 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA2, M2, FRN,

3.356%, 12/25/27 † USA USD 4,441,928 0.543,937,829 Towd Point Mortgage Trust, 2016-1, A1, 144A, 3.50%, 02/25/55 USA USD 4,028,645 0.493,900,000 Chase Issuance Trust, 2007-B1, B1, FRN, 0.954%, 04/15/19 † USA USD 3,899,055 0.473,450,000 COBALT CMBS Commercial Mortgage Trust, 2007-C2, AMFX, FRN, 5.526%,

04/15/47 † USA USD 3,514,687 0.433,486,900 Catamaran CLO Ltd., 2014-2A, BR, 144A, FRN, 3.658%, 10/18/26 † CYM USD 3,497,151 0.433,589,891 Merrill Lynch Mortgage Investors Trust, 2005-A10, A, FRN, 0.966%, 02/25/36 † USA USD 3,362,866 0.413,250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA3, M2, FRN,

3.606%, 04/25/28 † USA USD 3,345,245 0.413,300,102 Colony American Homes, 2014-1A, A, 144A, FRN, 2.136%, 05/17/31 † USA USD 3,299,130 0.403,200,000 Chase Issuance Trust, 2007-C1, C1, FRN, 1.164%, 04/15/19 † USA USD 3,199,839 0.393,110,000 Invitation Homes Trust, 2014-SFR2, B, 144A, FRN, 2.336%, 09/17/31 † USA USD 3,112,548 0.383,222,000 Bear Stearns Commercial Mortgage Securities Trust, 2006-PW11, AJ, FRN,

5.436%, 03/11/39 † USA USD 3,098,437 0.383,060,165 Invitation Homes Trust, 2014-SFR2, A, 144A, FRN, 1.836%, 09/17/31 † USA USD 3,058,561 0.373,130,000 GSAA Home Equity Trust, 2005-5, M3, FRN, 1.701%, 02/25/35 † USA USD 3,040,293 0.373,000,000 Bear Stearns Commercial Mortgage Securities Trust, 2007-PW16, AM, FRN,

5.711%, 06/11/40 † USA USD 3,039,511 0.372,860,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQ1, M3, FRN, 4.556%,

03/25/25 † USA USD 3,030,858 0.373,000,000 Cumberland Park CLO Ltd., 2015-2A, C, 144A, FRN, 3.731%, 07/20/26 † USA USD 2,994,990 0.362,847,947 Invitation Homes Trust, 2015-SFR3, A, 144A, FRN, 2.036%, 08/17/32 † USA USD 2,857,562 0.352,800,000 LB-UBS Commercial Mortgage Trust, 2001-C3, E, 144A, FRN, 6.95%, 06/15/36 † USA USD 2,795,720 0.342,640,000 CD Commercial Mortgage Trust, 2005-CD1, E, FRN, 5.283%, 07/15/44 † USA USD 2,637,018 0.322,600,000 JPMorgan Chase Commercial Mortgage Securities Trust, 2005-LPD5, F, FRN,

5.542%, 12/15/44 † USA USD 2,593,660 0.322,733,568 Citigroup Commercial Mortgage Trust, 2006-C5, AJ, 5.482%, 10/15/49 USA USD 2,566,202 0.312,532,596 Tricon American Homes Trust, 2015-SFR1, A, 144A, FRN, 1.986%, 05/17/32 † USA USD 2,522,351 0.312,485,672 Commercial Mortgage Trust, 2007-C9, A1A, FRN, 5.785%, 12/10/49 † USA USD 2,518,591 0.312,443,293 Invitation Homes Trust, 2015-SFR2, A, 144A, FRN, 2.03%, 06/17/32 † USA USD 2,449,598 0.302,430,000 Apidos CDO, 2013-14A, C2, 144A, 4.85%, 04/15/25 USA USD 2,444,361 0.302,434,346 Novastar Home Equity Loan, 2004-4, M4, FRN, 2.406%, 03/25/35 † USA USD 2,426,556 0.302,394,506 American Homes 4 Rent, 2014-SFR1, A, 144A, FRN, 1.736%, 06/17/31 † USA USD 2,387,461 0.292,271,551 ARCap REIT Inc., 2004-RR3, A2, 144A, FRN, 5.377%, 09/21/45 † USA USD 2,298,765 0.282,180,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA1, M2, FRN,

2.606%, 10/25/27 † USA USD 2,212,067 0.272,130,000 Towd Point Mortgage Trust, 2016-5, A1, 144A, FRN, 2.50%, 10/25/56 † USA USD 2,124,367 0.261,975,000 American Express Credit Account Master Trust, 2008-2, A, FRN, 1.964%,

09/15/20 † USA USD 1,999,793 0.241,988,000 Bear Stearns Commercial Mortgage Securities Trust, 2005-T20, E, FRN, 5.119%,


10/25/24 † USA USD 1,880,011 0.231,800,000 Chase Issuance Trust, 2015-A2, A2, 1.59%, 02/18/20 USA USD 1,805,326 0.221,791,728 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DN1, M2, FRN, 3.156%,

01/25/25 † USA USD 1,799,257 0.221,770,677 SWAY Residential Trust, 2014-1, A, 144A, FRN, 2.036%, 01/17/32 † USA USD 1,773,203 0.221,750,000 Madison Park Funding XIII Ltd., 2014-13A, A, 144A, FRN, 2.328%, 01/19/25 † USA USD 1,752,695 0.211,740,000 West CLO Ltd., 2014-1A, A2, 144A, FRN, 2.982%, 07/18/26 † USA USD 1,736,276 0.211,710,000 Cent CLO LP, 2014-22A, A1R, 144A, FRN, 2.291%, 11/07/26 † CYM USD 1,713,044 0.211,710,000 Carlyle Global Market Strategies CLO Ltd., 2012-4A, AR, 144A, FRN, 2.33%,

01/20/29 † USA USD 1,709,692 0.211,695,530 Colony MFM Trust, 2014-1, A, 144A, 2.543%, 04/20/50 USA USD 1,685,829 0.201,655,564 FHLMC Structured Agency Credit Risk Debt Notes, 2014-HQ1, M2, FRN, 3.256%,

08/25/24 † USA USD 1,670,158 0.201,648,410 Invitation Homes Trust, 2015-SFR1, A, 144A, FRN, 2.186%, 03/17/32 † USA USD 1,652,363 0.201,604,499 CIFC Funding Ltd., 2007-3A, A1J, 144A, FRN, 1.284%, 07/26/21 † USA USD 1,603,359 0.191,631,364 American Home Mortgage Investment Trust, 2004-3, 4A, FRN, 2.758%,

10/25/34 † USA USD 1,595,498 0.191,623,246 Manufactured Housing Contract Trust Pass Through Certificates, 2001-1, IIM2,

FRN, 2.189%, 04/20/32 † USA USD 1,531,537 0.191,500,000 Chase Issuance Trust, 2007-A2, A2, FRN, 0.754%, 04/15/19 † USA USD 1,500,019 0.181,558,000 Commercial Mortgage Trust, 2006-GG7, AJ, FRN, 5.774%, 07/10/38 † USA USD 1,445,715 0.18


— Franklin U.S. Low Duration Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Asset-Backed Securities (continued)1,309,641 FNMA, 4.00%, 04/01/25 USA USD 1,383,459 0.171,272,317 Wells Fargo Mortgage Backed Securities Trust, 2005-AR, 1A1, FRN, 2.807%,

02/25/35 † USA USD 1,292,416 0.161,306,573 First Horizon Alternative Mortgage Securities Trust, 2004-AA5, 2A1, FRN, 2.735%,

12/25/34 † USA USD 1,270,961 0.151,238,901 Ace Securities Corp. Home Equity Loan Trust, 2005-HE1, M4, FRN, 1.836%,

02/25/35 † USA USD 1,226,366 0.151,208,000 Carlyle Global Market Strategies CLO Ltd., 2014-4A, A1, 144A, FRN, 2.38%,

10/15/26 † USA USD 1,209,607 0.151,200,000 Banc of America Commercial Mortgage Trust, 2006-1, D, FRN, 5.619%,

09/10/45 † USA USD 1,198,174 0.151,183,810 Resource Capital Corp. Ltd., 2014-CRE2, A, 144A, FRN, 1.754%, 04/15/32 † USA USD 1,177,432 0.141,195,706 Thornburg Mortgage Securities Trust, 2003-4, A1, FRN, 1.396%, 09/25/43 † USA USD 1,157,446 0.141,131,443 Madison Avenue Manufactured Housing Contract Trust, 2002-A, B1, FRN, 4.006%,

03/25/32 † USA USD 1,146,850 0.141,079,715 FNMA, ARM, 2.936%, 12/01/36 USA USD 1,141,041 0.141,107,500 Eaton Vance CDO Ltd., 2014-1A, B, 144A, FRN, 2.93%, 07/15/26 † USA USD 1,104,908 0.131,113,856 Merrill Lynch Mortgage Investors Trust, 2003-G, A2, FRN, 1.96%, 01/25/29 † USA USD 1,083,423 0.131,043,045 Bear Stearns Commercial Mortgage Securities Trust, 2007-PW16, A4, FRN,

5.711%, 06/11/40 † USA USD 1,044,375 0.13948,500 Eaton Vance CDO Ltd., 2014-1A, C, 144A, FRN, 3.88%, 07/15/26 † USA USD 953,195 0.12930,162 Morgan Stanley Capital I Trust, 2006-HQ8, AJ, FRN, 5.46%, 03/12/44 † USA USD 934,626 0.11926,313 Wells Fargo Mortgage Backed Securities Trust, 2005-AR10, 2A3, FRN, 3.01%,

06/25/35 † USA USD 924,467 0.11918,879 Silver Bay Realty Trust, 2014-1, A, 144A, FRN, 1.704%, 09/17/31 † USA USD 914,617 0.11902,994 Ameriquest Mortgage Securities Inc. Asset-Backed Pass-Through Certificates,

2004-R4, M1, FRN, 1.581%, 06/25/34 † USA USD 889,130 0.11877,608 Towd Point Mortgage Trust, 2015-3, A1B, 144A, FRN, 3.00%, 03/25/54 † USA USD 887,042 0.11850,000 Atrium X, 10A, A, 144A, FRN, 2.00%, 07/16/25 † USA USD 850,484 0.10810,000 Emerson Park CLO Ltd., 2013-1A, C2, 144A, 5.64%, 07/15/25 USA USD 818,262 0.10811,042 Banc of America Commercial Mortgage Trust, 2006-4, AJ, 5.695%, 07/10/46 USA USD 809,710 0.10814,410 Merrill Lynch Mortgage Trust, 2005-CKI1, D, FRN, 5.374%, 11/12/37 † USA USD 796,490 0.10791,723 Ownit Mortgage Loan Asset-Backed Certificates, 2005-2, M4, FRN, 1.686%,

03/25/36 † USA USD 788,946 0.10770,000 Invitation Homes Trust, 2014-SFR1, B, 144A, FRN, 2.236%, 06/17/31 † USA USD 770,738 0.09766,288 Morgan Stanley Capital I Trust, 2005-RR6, B, 144A, 5.306%, 05/24/43 USA USD 765,970 0.09730,000 Highbridge Loan Management Ltd., 2013-2A, B2, 144A, 5.80%, 10/20/24 USA USD 739,395 0.09728,021 ARES IIIR/IVR CLO Ltd., 2007-3RA, A2, 144A, FRN, 1.10%, 04/16/21 † USA USD 728,480 0.09720,392 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN4, M2, FRN, 3.156%,

10/25/24 † USA USD 721,726 0.09720,000 GE Capital Commercial Mortgage Corp. Trust, 2007-C1, AM, FRN, 5.606%,

12/10/49 † USA USD 721,028 0.09680,000 Dryden 33 Senior Loan Fund, 2014-33A, AR, 144A, FRN, 2.316%, 10/15/28 † CYM USD 680,959 0.08656,828 Argent Securities Inc. Asset-Backed Pass-Through Certificates, 2005-W2, A2C,

FRN, 1.116%, 10/25/35 † USA USD 634,700 0.08560,000 Conseco Finance Securitizations Corp., 2002-2, M1, FRN, 7.424%, 03/01/33 † USA USD 623,178 0.08618,177 Resource Capital Corp. Ltd., 2015-CRE4, A, 144A, FRN, 2.107%, 08/15/32 † USA USD 618,634 0.08609,000 Cornerstone CLO Ltd., 2007-1A, B, 144A, FRN, 1.83%, 07/15/21 † USA USD 605,894 0.07581,561 CWABS Asset-Backed Certificates Trust, 2004-7, MV3, FRN, 1.806%, 12/25/34 † USA USD 581,554 0.07542,407 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN3, M2, FRN, 3.156%,

08/25/24 † USA USD 544,034 0.07525,553 Wachovia Bank Commercial Mortgage Trust, 2006-C27, AM, FRN, 5.795%,

07/15/45 † USA USD 525,107 0.06490,000 Colony American Homes, 2014-1A, C, 144A, FRN, 2.586%, 05/17/31 † USA USD 489,773 0.06480,000 Cent CLO 21 Ltd., 2014-21A, B, 144A, FRN, 3.686%, 07/27/26 † USA USD 479,794 0.06495,907 Structured Asset Mortgage Investments Trust, 2003-AR2, A1, FRN, 1.476%,

12/19/33 † USA USD 477,967 0.06455,107 Residential Funding Mortgage Securities II, 2004-HI3, A5, FRN, 5.48%,

06/25/34 † USA USD 470,970 0.06478,523 WaMu Mortgage Pass-Through Certificates, 2005-AR8, 1A1A, FRN, 1.046%,

07/25/45 † USA USD 458,107 0.06443,394 GSAA Home Equity Trust, 2005-6, A3, FRN, 1.126%, 06/25/35 † USA USD 440,790 0.05440,000 Silver Bay Realty Trust, 2014-1, B, 144A, FRN, 2.186%, 09/17/31 † USA USD 436,494 0.05436,847 G-Force LLC, 2005-RRA, B, 144A, 5.09%, 08/22/36 USA USD 436,012 0.05405,921 FNMA, ARM, 2.64%, 03/01/36 USA USD 423,570 0.05385,689 FNMA, ARM, 2.58%, 11/01/35 USA USD 403,089 0.05400,000 Voya CLO Ltd., 2015-1A, A1, 144A, FRN, 2.362%, 04/18/27 † USA USD 400,484 0.05371,364 Wachovia Bank Commercial Mortgage Trust, 2003-C7, F, 144A, FRN, 5.924%,

10/15/35 † USA USD 372,021 0.05358,914 JPMorgan Chase Commercial Mortgage Securities Trust, 2006-CB17, AM, 5.464%,

12/12/43 USA USD 358,809 0.04354,174 Wells Fargo Mortgage Backed Securities Trust, 2005-AR3, 2A1, FRN, 3.094%,

03/25/35 † USA USD 357,091 0.04349,861 Merrill Lynch Mortgage Investors Trust, 2005-1, 2A2, FRN, 2.748%, 04/25/35 † USA USD 340,391 0.04330,000 Voya CLO Ltd., 2014-4A, A1, 144A, FRN, 2.381%, 10/14/26 † CYM USD 330,119 0.04298,275 FNMA, ARM, 2.752%, 02/01/37 USA USD 315,816 0.04314,798 Fannie Mae Connecticut Avenue Securities, 2014-C02, 2M1, FRN, 1.706%,

05/25/24 † USA USD 315,273 0.04312,253 MASTR ARM Trust, 2007-3, 12A2, FRN, 0.956%, 05/25/47 † USA USD 312,091 0.04287,606 FNMA, ARM, 3.182%, 09/01/34 USA USD 303,224 0.04287,008 FNMA, ARM, 2.86%, 08/01/33 USA USD 300,586 0.04269,416 FNMA, ARM, 3.505%, 05/01/33 USA USD 283,555 0.03290,460 Merrill Lynch Mortgage Investors Trust, 2003-A, 1A, FRN, 1.496%, 03/25/28 † USA USD 277,073 0.03262,320 FNMA, ARM, 2.83%, 02/01/33 USA USD 275,220 0.03






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assets

Asset-Backed Securities (continued)256,770 FNMA, ARM, 3.50%, 05/01/34 USA USD 270,195 0.03269,172 Greenwich Capital Commercial Funding Corp., 2006-GG7, AM, FRN, 5.774%,

07/10/38 † USA USD 269,093 0.03243,807 FNMA, ARM, 2.668%, 03/01/35 USA USD 259,448 0.03264,898 CWABS Inc. Asset-Backed Certificates, 2004-1, M1, FRN, 1.506%, 03/25/34 † USA USD 257,149 0.03250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN1, M2, FRN, 2.956%,

02/25/24 † USA USD 255,843 0.03204,617 FNMA, ARM, 2.502%, 05/01/35 USA USD 214,407 0.03213,807 FNMA, 2005-122, FN, FRN, 1.106%, 01/25/36 † USA USD 212,172 0.03199,546 FNMA, ARM, 2.619%, 09/01/34 USA USD 209,013 0.03198,491 FNMA, ARM, 3.045%, 11/01/39 USA USD 208,197 0.03199,842 MASTR Alternative Loan Trust, 2004-11, 2A1, FRN, 5.564%, 11/25/19 † USA USD 204,331 0.02186,437 FNMA, ARM, 2.756%, 03/01/33 USA USD 195,272 0.02203,799 Credit Suisse First Boston Mortgage Securities Corp., 2001-HE8, M1, FRN,

1.806%, 02/25/31 † USA USD 188,060 0.02175,573 LNR CDO Ltd., 2002-1A, DFL, 144A, FRN, 2.161%, 07/24/37 † USA USD 176,338 0.02162,839 FNMA, ARM, 2.553%, 03/01/35 USA USD 171,308 0.02164,203 FNMA, ARM, 2.725%, 07/01/35 USA USD 169,163 0.02160,681 FNMA, ARM, 1.928%, 12/01/37 USA USD 166,081 0.02160,801 FNMA, ARM, 3.25%, 08/01/37 USA USD 164,411 0.02159,844 FNMA, 2005-58, FC, FRN, 1.006%, 07/25/35 † USA USD 160,735 0.02151,856 FNMA, ARM, 2.774%, 06/01/33 USA USD 160,359 0.02153,622 MASTR Alternative Loan Trust, 2004-4, 5A1, 5.50%, 04/25/19 USA USD 156,497 0.02154,296 Bear Stearns Commercial Mortgage Securities Trust, 2006-PW13, AJ, 5.611%,

09/11/41 USA USD 154,190 0.02143,879 FNMA, ARM, 2.742%, 11/01/35 USA USD 152,339 0.02161,703 First Franklin Mortgage Loan Asset-Backed Certificates, 2001-FF2, A1, FRN,

1.376%, 11/25/31 † USA USD 150,260 0.02142,968 FNMA, ARM, 2.46%, 04/01/27 USA USD 148,957 0.02139,721 FNMA, ARM, 2.817%, 04/01/36 USA USD 146,729 0.02143,826 FNMA, ARM, 2.958%, 09/01/32 USA USD 145,327 0.02138,965 FNMA, ARM, 2.875%, 02/01/30 USA USD 142,395 0.02132,586 FNMA, ARM, 3.106%, 07/01/36 USA USD 139,632 0.02123,611 FNMA, ARM, 2.657%, 06/01/35 USA USD 129,558 0.02122,293 FNMA, ARM, 3.121%, 12/01/35 USA USD 128,705 0.02125,236 MASTR Alternative Loan Trust, 2003-6, 2A1, 5.00%, 08/25/18 USA USD 126,691 0.02126,725 Residential Asset Securities Corp., 2006-KS7, A3, FRN, 0.906%, 09/25/36 † USA USD 126,588 0.02113,233 FNMA, ARM, 2.609%, 02/01/35 USA USD 118,056 0.01109,241 FNMA, ARM, 2.90%, 02/01/35 USA USD 115,977 0.01110,684 FNMA, ARM, 2.21%, 01/01/33 USA USD 115,416 0.01104,167 FNMA, ARM, 2.606%, 01/01/35 USA USD 110,005 0.01103,411 FNMA, ARM, 2.921%, 08/01/35 USA USD 109,865 0.01103,867 FNMA, ARM, 2.897%, 05/01/24 USA USD 109,035 0.01102,958 FNMA, ARM, 2.651%, 01/01/33 USA USD 107,760 0.01100,113 FNMA, ARM, 3.054%, 03/01/36 USA USD 106,315 0.01102,571 FNMA, ARM, 2.77%, 03/01/31 USA USD 104,680 0.01

98,302 FNMA, ARM, 3.018%, 03/01/38 USA USD 104,210 0.0199,217 FNMA, ARM, 2.908%, 07/01/33 USA USD 103,376 0.0196,488 FNMA, ARM, 2.852%, 12/01/34 USA USD 101,640 0.0195,258 MASTR Alternative Loan Trust, 2003-9, 1A1, 5.50%, 12/25/18 USA USD 96,213 0.0191,769 FNMA, ARM, 2.662%, 09/01/33 USA USD 96,095 0.0188,867 FNMA, ARM, 2.879%, 10/01/34 USA USD 93,368 0.0185,418 FNMA, ARM, 2.854%, 09/01/33 USA USD 89,909 0.0185,419 FNMA, ARM, 1.953%, 11/01/32 USA USD 88,065 0.0181,001 FNMA, ARM, 3.00%, 07/01/33 USA USD 85,738 0.0179,383 FNMA, ARM, 2.819%, 02/01/38 USA USD 84,403 0.0180,715 FNMA, ARM, 2.508%, 02/01/25 USA USD 83,977 0.0180,258 FNMA, ARM, 1.835%, 04/01/32 USA USD 80,522 0.0176,636 FNMA, ARM, 2.876%, 10/01/35 USA USD 80,440 0.0178,720 MASTR Alternative Loan Trust, 2003-1, 3A1, 5.00%, 02/25/18 USA USD 79,711 0.0174,540 FNMA, ARM, 2.76%, 10/01/33 USA USD 78,213 0.0182,725 Chase Funding Trust, 2004-2, 2A2, FRN, 1.256%, 02/26/35 † USA USD 75,757 0.0170,282 FNMA, ARM, 2.447%, 11/01/35 USA USD 73,455 0.0168,697 FNMA, ARM, 2.723%, 07/01/35 USA USD 72,882 0.0169,308 FNMA, ARM, 2.95%, 04/01/47 USA USD 71,902 0.0167,183 FNMA, ARM, 2.815%, 06/01/34 USA USD 70,819 0.0165,723 FNMA, ARM, 2.907%, 02/01/36 USA USD 69,455 0.0165,333 FNMA, ARM, 2.76%, 10/01/43 USA USD 66,817 0.0160,412 FNMA, ARM, 2.425%, 02/01/33 USA USD 63,592 0.0159,066 FNMA, ARM, 2.935%, 12/01/28 USA USD 61,447 0.0158,943 FNMA, ARM, 2.805%, 07/01/33 USA USD 61,440 0.0158,397 FNMA, ARM, 2.817%, 04/01/36 USA USD 61,078 0.0158,630 FNMA, ARM, 3.083%, 08/01/32 USA USD 59,539 0.0165,756 Morgan Stanley ABS Capital I Inc. Trust, 2004-HE6, A2, FRN, 1.436%, 08/25/34 † USA USD 59,293 0.0158,293 FNMA, ARM, 1.953%, 10/01/32 USA USD 59,258 0.0155,442 FNMA, ARM, 2.34%, 02/01/33 USA USD 57,526 0.0152,914 FNMA, ARM, 2.632%, 02/01/34 USA USD 55,851 0.0153,543 FNMA, ARM, 1.974%, 09/01/40 USA USD 55,287 0.0151,938 FNMA, ARM, 2.405%, 11/01/33 USA USD 55,031 0.0151,875 FNMA, ARM, 2.80%, 05/01/36 USA USD 54,510 0.0150,981 FNMA, ARM, 2.888%, 11/01/36 USA USD 53,395 0.01






Number ofshares or


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assets

Asset-Backed Securities (continued)49,054 FNMA, ARM, 3.466%, 04/01/33 USA USD 51,763 0.0148,368 FNMA, ARM, 2.661%, 02/01/31 USA USD 50,901 0.0147,858 FNMA, ARM, 2.783%, 03/01/38 USA USD 50,194 0.0147,748 FNMA, ARM, 2.722%, 04/01/37 USA USD 50,177 0.0145,391 FNMA, ARM, 2.663%, 07/01/31 USA USD 46,794 0.0145,175 FNMA, ARM, 1.774%, 08/01/42 USA USD 46,017 0.0143,613 FNMA, ARM, 3.587%, 02/01/30 USA USD 45,338 0.0142,980 FNMA, ARM, 2.566%, 10/01/32 USA USD 45,325 0.0139,157 FNMA, ARM, 2.679%, 02/01/34 USA USD 41,264 0.0138,444 FNMA, ARM, 2.883%, 01/01/35 USA USD 40,637 0.0138,449 FNMA, ARM, 2.98%, 12/01/32 USA USD 40,603 0.0139,002 FNMA, ARM, 2.743%, 03/01/39 USA USD 39,840 0.0039,171 FNMA, ARM, 2.807%, 05/01/33 USA USD 39,508 0.0034,503 FNMA, ARM, 3.10%, 11/01/36 USA USD 36,121 0.0036,008 JPMorgan Chase Commercial Mortgage Securities Trust, 2004-LN2, A2, 5.115%,

07/15/41 USA USD 35,939 0.0034,393 FNMA, ARM, 2.912%, 08/01/37 USA USD 35,837 0.0030,787 FNMA, ARM, 2.938%, 02/01/36 USA USD 32,533 0.0030,911 FNMA, ARM, 2.741%, 07/01/37 USA USD 32,286 0.0030,133 FNMA, ARM, 2.815%, 07/01/35 USA USD 31,814 0.0030,525 FNMA, ARM, 3.175%, 02/01/44 USA USD 31,614 0.0030,506 FNMA, ARM, 3.098%, 10/01/25 USA USD 31,059 0.0028,689 FNMA, ARM, 2.823%, 09/01/34 USA USD 30,182 0.0029,143 FNMA, ARM, 3.023%, 02/01/33 USA USD 29,946 0.0027,854 FNMA, ARM, 2.795%, 08/01/34 USA USD 29,283 0.0027,303 FNMA, ARM, 2.845%, 09/01/32 USA USD 28,977 0.0025,308 FNMA, ARM, 2.715%, 07/01/33 USA USD 26,581 0.0025,041 FNMA, ARM, 2.875%, 10/01/28 USA USD 25,181 0.0022,436 FNMA, ARM, 2.38%, 08/01/31 USA USD 23,493 0.0022,507 FNMA, ARM, 2.45%, 09/01/31 USA USD 23,129 0.0022,315 FNMA, ARM, 2.894%, 02/01/30 USA USD 22,722 0.0021,687 FNMA, ARM, 2.828%, 07/01/27 USA USD 22,466 0.0020,949 FNMA, ARM, 2.625%, 12/01/31 USA USD 21,754 0.0067,680 FIRSTPLUS Home Loan Owner Trust, 1998-5, M1, FRN, 7.42%, 12/10/24 † USA USD 20,764 0.0018,837 FNMA, ARM, 1.974%, 08/01/40 USA USD 18,948 0.0017,229 FNMA, ARM, 2.893%, 01/01/36 USA USD 18,228 0.0018,202 FNMA, ARM, 4.639%, 09/01/25 USA USD 18,193 0.0017,437 FNMA, ARM, 2.81%, 04/01/36 USA USD 17,928 0.0017,225 FNMA, ARM, 1.977%, 03/01/19 USA USD 17,899 0.0015,588 FNMA, ARM, 2.915%, 08/01/32 USA USD 16,065 0.0018,082 Argent Securities Inc., 2004-W1, AV2, FRN, 1.396%, 03/25/34 † USA USD 15,776 0.0015,149 FNMA, ARM, 2.968%, 04/01/24 USA USD 15,652 0.0014,803 FNMA, ARM, 2.758%, 02/01/38 USA USD 15,206 0.0013,272 FNMA, ARM, 3.21%, 12/01/39 USA USD 13,720 0.0012,154 FNMA, ARM, 2.47%, 05/01/32 USA USD 12,935 0.0011,247 FNMA, ARM, 3.017%, 06/01/34 USA USD 11,897 0.0011,451 FNMA, ARM, 2.615%, 03/01/18 USA USD 11,455 0.0010,920 FNMA, ARM, 2.68%, 12/01/27 USA USD 10,972 0.0010,110 FNMA, ARM, 2.573%, 06/01/35 USA USD 10,604 0.00

9,995 FNMA, ARM, 3.085%, 04/01/33 USA USD 10,272 0.009,615 FNMA, ARM, 2.83%, 01/01/21 USA USD 9,950 0.009,602 FNMA, ARM, 2.49%, 07/01/20 USA USD 9,788 0.008,936 FNMA, ARM, 2.461%, 10/01/32 USA USD 9,113 0.008,887 FNMA, ARM, 3.098%, 10/01/27 USA USD 8,958 0.007,692 FNMA, ARM, 2.69%, 03/01/37 USA USD 7,950 0.007,748 FNMA, ARM, 2.979%, 05/01/27 USA USD 7,916 0.006,587 FNMA, ARM, 2.977%, 05/01/36 USA USD 6,952 0.006,775 FNMA, ARM, 3.715%, 01/01/33 USA USD 6,869 0.006,474 FNMA, ARM, 2.708%, 09/01/35 USA USD 6,851 0.006,508 FNMA, ARM, 2.745%, 04/01/33 USA USD 6,812 0.006,225 FNMA, ARM, 2.782%, 11/01/34 USA USD 6,550 0.006,217 FNMA, ARM, 2.622%, 11/01/32 USA USD 6,382 0.005,963 FNMA, ARM, 3.584%, 03/01/36 USA USD 6,352 0.005,570 FNMA, ARM, 3.06%, 08/01/33 USA USD 5,923 0.005,618 FNMA, ARM, 2.21%, 04/01/37 USA USD 5,758 0.00

10,459 Structured Asset Investment Loan Trust, 2003-BC2, M3, FRN, 5.631%, 04/25/33 † USA USD 5,567 0.005,014 FNMA, ARM, 2.77%, 12/01/29 USA USD 5,100 0.004,870 FNMA, ARM, 2.749%, 09/01/27 USA USD 4,896 0.004,679 Asset-Backed Securities Corp. Home Equity Loan Trust, 2004-HE7, A4, FRN,

1.584%, 10/25/34 † USA USD 4,436 0.003,981 FNMA, ARM, 2.833%, 03/01/35 USA USD 4,186 0.003,479 FNMA, ARM, 2.40%, 11/01/33 USA USD 3,553 0.003,287 FNMA, ARM, 2.802%, 06/01/33 USA USD 3,426 0.003,262 FNMA, ARM, 3.38%, 10/01/32 USA USD 3,291 0.003,454 Countrywide Asset-Backed Certificates, 2003-BC3, A2, FRN, 1.376%, 09/25/33 † USA USD 3,281 0.002,953 FNMA, ARM, 2.967%, 06/01/36 USA USD 3,121 0.003,063 FNMA, ARM, 4.22%, 04/01/18 USA USD 3,081 0.001,619 FNMA, ARM, 2.715%, 03/01/25 USA USD 1,715 0.00






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Marketvalue

% ofnet

assets

Asset-Backed Securities (continued)1,348 Asset-Backed Securities Corp. Home Equity Loan Trust, 2004-HE7, A2, FRN,

1.344%, 10/25/34 † USA USD 1,255 0.00

217,753,897 26.46

Corporate Bonds8,800,000 The Goldman Sachs Group Inc., senior note, FRN, 2.163%, 09/15/20 † USA USD 8,886,654 1.088,000,000 Beazer Homes USA Inc., senior note, 5.75%, 06/15/19 USA USD 8,320,000 1.017,200,000 Morgan Stanley, senior note, FRN, 2.026%, 01/27/20 † USA USD 7,266,924 0.887,300,000 Toys R Us Inc., senior bond, 7.375%, 10/15/18 USA USD 7,227,000 0.886,500,000 JPMorgan Chase & Co., senior note, 2.20%, 10/22/19 USA USD 6,525,603 0.796,400,000 Bank of America Corp., senior note, FRN, 1.92%, 01/15/19 † USA USD 6,459,187 0.796,000,000 Owens-Illinois Inc., senior bond, 7.80%, 05/15/18 USA USD 6,390,000 0.786,200,000 Capital One Bank USA NA, senior note, 2.30%, 06/05/19 USA USD 6,216,145 0.765,000,000 CSC Holdings LLC, senior note, 8.625%, 02/15/19 USA USD 5,537,500 0.675,200,000 Ford Motor Credit Co. LLC, senior note, 3.157%, 08/04/20 USA USD 5,239,291 0.645,000,000 New York Life Global Funding, secured note, 144A, 2.15%, 06/18/19 USA USD 5,026,510 0.614,800,000 Avon Products Inc., senior note, 6.60%, 03/15/20 USA USD 4,872,000 0.594,900,000 Deutsche Bank AG, senior note, FRN, 2.221%, 08/20/20 † DEU USD 4,808,247 0.584,800,000 HSBC USA Inc., senior note, 2.00%, 08/07/18 USA USD 4,799,069 0.584,600,000 Exxon Mobil Corp., senior note, 2.397%, 03/06/22 USA USD 4,575,054 0.564,300,000 Intesa Sanpaolo SpA, senior note, 3.875%, 01/16/18 ITA USD 4,360,135 0.534,300,000 Norddeutsche Landesbank Girozentrale, secured note, 144A, 2.00%, 02/05/19 DEU USD 4,316,426 0.524,300,000 Regions Financial Corp., senior note, 2.00%, 05/15/18 USA USD 4,295,575 0.524,200,000 Bank of New York Mellon Corp., senior note, FRN, 1.776%, 08/17/20 † USA USD 4,263,533 0.524,200,000 Actavis Funding SCS, senior note, 2.35%, 03/12/18 USA USD 4,224,969 0.514,100,000 Alibaba Group Holding Ltd., senior note, 2.50%, 11/28/19 CHN USD 4,118,266 0.504,100,000 Kraft Heinz Foods Co., senior note, 2.00%, 07/02/18 USA USD 4,101,763 0.503,700,000 Unione di Banche Italiane SpA, senior note, Reg S, 2.875%, 02/18/19 ITA EUR 4,094,824 0.504,000,000 Verizon Communications Inc., senior note, FRN, 2.709%, 09/14/18 † USA USD 4,090,304 0.504,000,000 Fiserv Inc., senior note, 2.70%, 06/01/20 USA USD 4,020,228 0.494,100,000 Kookmin Bank, secured note, Reg S, 2.125%, 10/21/20 KOR USD 4,019,374 0.494,000,000 Marriott International Inc., senior note, 2.875%, 03/01/21 USA USD 4,018,588 0.494,000,000 Citigroup Inc., senior note, FRN, 1.642%, 04/08/19 † USA USD 4,006,192 0.494,000,000 JPMorgan Chase & Co., senior note, 1.85%, 03/22/19 USA USD 3,987,132 0.484,000,000 Royal Bank of Canada, secured note, 2.10%, 10/14/20 CAN USD 3,982,292 0.483,500,000 Intesa Sanpaolo SpA, senior note, Reg S, FRN, 2.619%, 04/18/18 † ITA EUR 3,782,519 0.463,500,000 CBS Corp., senior note, 2.30%, 08/15/19 USA USD 3,512,250 0.433,400,000 Baxalta Inc., senior note, 2.00%, 06/22/18 USA USD 3,400,864 0.413,300,000 The Export-Import Bank of China, senior note, 144A, 2.50%, 07/31/19 CHN USD 3,338,396 0.413,200,000 NBCUniversal Enterprise Inc., senior note, 144A, 1.974%, 04/15/19 USA USD 3,211,357 0.393,200,000 AT&T Inc., senior note, 2.45%, 06/30/20 USA USD 3,178,083 0.393,000,000 Maxim Integrated Products Inc., senior note, 2.50%, 11/15/18 USA USD 3,027,702 0.373,000,000 Ford Motor Credit Co. LLC, senior note, 2.597%, 11/04/19 USA USD 2,996,127 0.363,000,000 Sinopec Group Overseas Development 2015 Ltd., senior note, 144A, 2.50%,

04/28/20 CHN USD 2,982,405 0.362,800,000 Banca Monte dei Paschi di Siena SpA, secured note, Reg S, 2.125%, 11/26/25 ITA EUR 2,977,757 0.362,900,000 Biogen Inc., senior note, 2.90%, 09/15/20 USA USD 2,937,355 0.362,900,000 Amgen Inc., senior note, FRN, 1.516%, 05/22/19 † USA USD 2,918,696 0.352,800,000 Juniper Networks Inc., senior note, 3.125%, 02/26/19 USA USD 2,845,528 0.352,800,000 PSEG Power LLC, senior note, 3.00%, 06/15/21 USA USD 2,809,013 0.342,800,000 National Australia Bank of New York, senior note, 1.875%, 07/23/18 AUS USD 2,803,528 0.342,700,000 Hewlett Packard Enterprise Co., senior note, FRN, 3.038%, 10/05/18 † USA USD 2,759,635 0.342,700,000 Jackson National Life Global Funding, secured note, 144A, 2.25%, 04/29/21 USA USD 2,662,006 0.322,600,000 Kinder Morgan Inc., senior note, 3.05%, 12/01/19 USA USD 2,637,835 0.322,600,000 Anheuser-Busch InBev Finance Inc., senior note, 2.65%, 02/01/21 BEL USD 2,616,276 0.322,500,000 TIAA Asset Management Finance LLC, senior note, 144A, 2.95%, 11/01/19 USA USD 2,543,645 0.312,500,000 Zimmer Holdings Inc., senior note, 2.70%, 04/01/20 USA USD 2,500,678 0.302,400,000 Oracle Corp., senior note, 2.375%, 01/15/19 USA USD 2,432,318 0.302,400,000 Imperial Brands Finance PLC, senior note, 144A, 2.95%, 07/21/20 GBR USD 2,411,598 0.292,300,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured note, first lien,

144A, 3.48%, 06/01/19 USA USD 2,348,611 0.292,300,000 Pricoa Global Funding I, secured note, 144A, 2.55%, 11/24/20 USA USD 2,301,306 0.282,300,000 The Southern Co., senior note, 2.35%, 07/01/21 USA USD 2,260,762 0.282,178,000 Becton Dickinson and Co., senior note, 2.675%, 12/15/19 USA USD 2,210,269 0.272,200,000 Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC, 144A, 3.36%, 03/20/23 USA USD 2,209,614 0.272,200,000 Prudential Financial Inc., senior note, FRN, 1.686%, 08/15/18 † USA USD 2,208,199 0.272,200,000 ING Bank NV, senior note, 144A, FRN, 1.536%, 10/01/19 † NLD USD 2,203,641 0.272,000,000 Banco Popular Espanol SA, secured note, Reg S, 1.00%, 03/03/22 ESP EUR 2,151,170 0.262,000,000 Lincoln Finance Ltd., senior secured note, 144A, 7.375%, 04/15/21 NLD USD 2,137,500 0.262,100,000 Statoil ASA, senior note, FRN, 1.343%, 11/08/18 † NOR USD 2,105,828 0.262,000,000 Kinder Morgan Finance Co. LLC, senior secured note, 144A, 6.00%, 01/15/18 USA USD 2,082,690 0.252,000,000 The Coca-Cola Femsa SAB de CV, senior note, 2.375%, 11/26/18 MEX USD 2,005,727 0.241,900,000 Woori Bank, sub. note, 144A, 4.75%, 04/30/24 KOR USD 1,921,765 0.231,900,000 CNH Industrial Capital LLC, senior note, 3.875%, 10/15/21 USA USD 1,873,875 0.231,800,000 Industrial and Commercial Bank of China Ltd./New York, 3.231%, 11/13/19 CHN USD 1,845,135 0.221,800,000 Telefonica Emisiones S.A.U., senior note, 3.192%, 04/27/18 ESP USD 1,825,515 0.221,800,000 Dominion Resources Inc., senior note, 2.50%, 12/01/19 USA USD 1,819,591 0.221,800,000 Reynolds American Inc., senior note, 2.30%, 06/12/18 USA USD 1,811,767 0.221,700,000 Metropolitan Life Global Funding I, senior secured bond, 144A, 3.875%, 04/11/22 USA USD 1,795,849 0.221,700,000 American Tower Corp., senior note, 3.40%, 02/15/19 USA USD 1,737,567 0.21






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assets

Corporate Bonds (continued)1,600,000 BlueScope Steel Ltd./BlueScope Steel Finance, senior note, 144A, 6.50%,

05/15/21 AUS USD 1,696,000 0.211,700,000 Petrobras Global Finance BV, senior note, FRN, 3.873%, 03/17/20 † BRA USD 1,670,250 0.201,500,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 4.25%,

07/01/20 NLD USD 1,541,288 0.191,500,000 Fiat Chrysler Automobiles NV, senior note, 4.50%, 04/15/20 USA USD 1,537,500 0.191,500,000 Wells Fargo & Co., senior note, FRN, 1.762%, 07/22/20 † USA USD 1,508,492 0.181,400,000 Weatherford International Ltd., senior note, 7.75%, 06/15/21 USA USD 1,419,250 0.171,400,000 Petrofac Ltd., senior note, 144A, 3.40%, 10/10/18 GBR USD 1,417,310 0.171,400,000 Ensco PLC, senior note, 4.70%, 03/15/21 USA USD 1,361,500 0.171,300,000 Sanchez Energy Corp., senior note, 7.75%, 06/15/21 USA USD 1,329,250 0.161,200,000 HCA Inc., senior secured bond, first lien, 5.875%, 03/15/22 USA USD 1,296,000 0.161,200,000 Intesa Sanpaolo SpA, senior note, 3.875%, 01/15/19 ITA USD 1,223,622 0.151,100,000 Bankinter SA, senior note, Reg S, 1.75%, 06/10/19 ESP EUR 1,204,741 0.151,200,000 Enable Midstream Partners LP, senior note, 2.40%, 05/15/19 USA USD 1,178,532 0.141,100,000 Navient Corp., senior note, 6.625%, 07/26/21 USA USD 1,166,000 0.141,000,000 Banca Monte dei Paschi di Siena SpA, secured note, Reg S, 2.875%, 04/16/21 ITA EUR 1,128,853 0.141,100,000 The Procter & Gamble Co., senior note, 1.70%, 11/03/21 USA USD 1,080,859 0.131,000,000 CIT Group Inc., senior note, 5.375%, 05/15/20 USA USD 1,065,000 0.132,000,000 Energy XXI Gulf Coast Inc., senior secured note, second lien, 144A, 11.00%,

03/15/20 * USA USD 1,060,000 0.131,200,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.375%, 03/15/20 USA USD 1,020,000 0.121,000,000 Edwards Lifesciences Corp., senior note, 2.875%, 10/15/18 USA USD 1,015,266 0.121,000,000 The Southern Co., senior note, 2.45%, 09/01/18 USA USD 1,010,499 0.121,000,000 Celgene Corp., senior note, 2.30%, 08/15/18 USA USD 1,006,335 0.121,000,000 Time Warner Inc., senior note, 2.10%, 06/01/19 USA USD 1,000,813 0.121,000,000 State Grid Overseas Investment 2013 Ltd., senior note, 144A, 1.75%, 05/22/18 CHN USD 995,135 0.12

700,000 Veolia Environnement SA, senior bond, Reg S, 4.625%, 03/30/27 FRA EUR 987,858 0.12960,000 Seven and Seven Ltd., senior note, 144A, FRN, 2.235%, 09/11/19 † KOR USD 958,474 0.12900,000 Navient Corp., senior note, 5.50%, 01/15/19 USA USD 936,000 0.11

1,016,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%,12/15/22 USA USD 909,320 0.11

900,000 Wells Fargo & Co., senior note, 2.50%, 03/04/21 USA USD 893,107 0.11900,000 JPMorgan Chase & Co., senior note, 2.40%, 06/07/21 USA USD 891,495 0.11800,000 State Grid Overseas Investment 2014 Ltd., senior note, 144A, 2.75%, 05/07/19 CHN USD 810,866 0.10600,000 Protective Life Global Funding, senior secured note, 144A, 1.722%, 04/15/19 USA USD 595,252 0.07400,000 CIT Group Inc., senior note, 5.25%, 03/15/18 USA USD 415,500 0.05300,000 Tenet Healthcare Corp., senior secured note, second lien, 144A, 7.50%, 01/01/22 USA USD 313,500 0.04

1,500,000 Edcon Ltd., senior secured note, first lien, 9.50%, 03/01/18 *,^ ZAF EUR 244,636 0.03200,000 Navient Corp., senior note, 5.875%, 03/25/21 USA USD 208,250 0.03100,000 EnLink Midstream Partners LP, senior note, 2.70%, 04/01/19 USA USD 100,095 0.01

300,387,585 36.51

Government and Municipal Bonds33,000,000 U.S. Treasury Note, 1.375%, 02/28/19 USA USD 33,088,506 4.0225,000,000 U.S. Treasury Note, 1.50%, 02/28/19 USA USD 25,133,925 3.0523,000,000 U.S. Treasury Note, 3.125%, 05/15/19 USA USD 23,976,143 2.9119,000,000 U.S. Treasury Note, 3.375%, 11/15/19 USA USD 20,040,326 2.4410,358,918 U.S. Treasury Note, Index Linked, 0.125%, 01/15/22 USA USD 10,383,789 1.2610,000,000 U.S. Treasury Note, 0.875%, 10/15/18 USA USD 9,950,950 1.21

8,746,412 U.S. Treasury Note, Index Linked, 1.375%, 01/15/20 USA USD 9,202,126 1.128,603,449 U.S. Treasury Note, Index Linked, 1.875%, 07/15/19 USA USD 9,164,187 1.118,482,065 U.S. Treasury Note, Index Linked, 0.125%, 01/15/23 USA USD 8,425,380 1.025,465,616 U.S. Treasury Bond, Index Linked, 0.125%, 07/15/22 USA USD 5,483,286 0.673,700,000 The Export-Import Bank of Korea, senior note, 2.25%, 01/21/20 KOR USD 3,672,083 0.453,053,869 U.S. Treasury Note, Index Linked, 0.125%, 07/15/24 USA USD 3,002,255 0.372,525,000 Industry Public Facilities Authority Tax Allocation Revenue, Transportation District,

Industrial Redevelopment Project No. 2, Refunding, Series B, AGMC Insured,3.389%, 01/01/20 USA USD 2,641,150 0.32

2,300,000 Pennsylvania State GO, Second Series, Refunding, 5.00%, 01/15/20 USA USD 2,508,817 0.317,500 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 2,220,569 0.27

352,000 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 1,748,202 0.215,900,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 1,314,756 0.16

17,000,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 1,296,531 0.16870,000 Texas State GO, Transportation Commission-Highway Improvement, Series A,

5.00%, 04/01/21 USA USD 983,866 0.12310,000 University of California Revenue, Series Y-2, Monthly FRN, 1.117%, 07/01/41 † USA USD 310,006 0.04900,000 Government of Malaysia, senior note, 3.58%, 09/28/18 MYS MYR 201,116 0.02

174,747,969 21.24

Securities Maturing Within One Year4,100,000 UniCredit SpA, senior note, Reg S, FRN, 0.646%, 04/10/17 † ITA EUR 4,321,160 0.534,000,000 International Lease Finance Corp., senior note, 8.75%, 03/15/17 USA USD 4,057,016 0.493,500,000 Reynolds Group Holdings Inc., senior bond, 8.125%, 06/15/17 USA USD 3,587,500 0.442,750,000 Banco Comercial Portugues SA, 4.75%, 06/22/17 PRT EUR 2,953,663 0.362,500,000 Walgreens Boots Alliance Inc., senior note, 1.75%, 11/17/17 USA USD 2,506,625 0.302,300,000 CNOOC Nexen Finance 2014 ULC, senior note, 1.625%, 04/30/17 CHN USD 2,298,643 0.282,300,000 Hutchison Whampoa International 14 Ltd., 144A, 1.625%, 10/31/17 HKG USD 2,295,147 0.282,000,000 Credit Suisse New York, senior note, FRN, 1.427%, 05/26/17 † CHE USD 2,001,654 0.242,000,000 Metropolitan Life Global Funding I, secured note, 144A, 1.30%, 04/10/17 USA USD 2,001,184 0.241,800,000 Korea Western Power Co. Ltd., senior note, 144A, 3.125%, 05/10/17 KOR USD 1,807,767 0.227,600,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 1,704,443 0.21






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Securities Maturing Within One Year (continued)1,300,000 Engie SA, senior note, 144A, 1.625%, 10/10/17 FRA USD 1,301,131 0.161,300,000 Intesa Sanpaolo SpA, senior note, 2.375%, 01/13/17 ITA USD 1,300,169 0.161,172,000 UniCredit SpA, senior note, FRN, 1.688%, 10/31/17 † ITA EUR 1,246,090 0.151,000,000 MetLife Inc., senior note, 1.903%, 12/15/17 USA USD 1,002,711 0.12

205,000 Government of Mexico, 7.75%, 12/14/17 MEX MXN 1,001,708 0.12800,000 Government of Serbia, senior note, 144A, 5.25%, 11/21/17 SRB USD 820,032 0.10800,000 Constellation Brands Inc., senior note, 7.25%, 05/15/17 USA USD 817,000 0.10600,000 Intesa Sanpaolo SpA, senior note, Reg S, FRN, 0.00%, 05/18/17 † ITA EUR 631,437 0.08

37,655,080 4.58

TOTAL BONDS 730,544,531 88.79



65,445 Halcon Resources Corp. ** USA USD 548,442 0.07




† Floating Rates are indicated as at December 31, 2016* These Bonds are currently in default^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.** These securities are submitted to a Fair Valuation






Number ofshares or


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Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAutomobiles & Components

251,383 Delphi Automotive PLC GBR USD 16,930,645 0.57

Banks227,704 Signature Bank USA USD 34,201,141 1.15104,428 SVB Financial Group USA USD 17,926,110 0.60

52,127,251 1.75

Capital Goods316,650 Raytheon Co. USA USD 44,964,300 1.51132,219 Honeywell International Inc. USA USD 15,317,571 0.51

48,015 Roper Technologies Inc. USA USD 8,790,586 0.29294,783 Univar Inc. USA USD 8,362,994 0.28

77,435,451 2.59

Commercial & Professional Services854,281 IHS Markit Ltd. USA USD 30,250,090 1.01

Consumer Durables & Apparel628,023 Newell Brands Inc. USA USD 28,041,227 0.94362,642 NIKE Inc., B USA USD 18,433,093 0.62

46,474,320 1.56

Consumer Services800,184 Starbucks Corp. USA USD 44,426,216 1.49134,287 Las Vegas Sands Corp. USA USD 7,172,268 0.24

51,598,484 1.73

Diversified Financials1,344,543 The Charles Schwab Corp. USA USD 53,069,112 1.78

211,261 MarketAxess Holdings Inc. USA USD 31,038,466 1.0475,082 BlackRock Inc. USA USD 28,571,704 0.95

221,993 Moody’s Corp. USA USD 20,927,280 0.70300,820 Intercontinental Exchange Inc. USA USD 16,972,265 0.57378,647 Synchrony Financial USA USD 13,733,527 0.46

10,309 Affiliated Managers Group Inc. USA USD 1,497,898 0.05

165,810,252 5.55

Energy654,406 Anadarko Petroleum Corp. USA USD 45,631,730 1.53812,598 Halliburton Co. USA USD 43,953,426 1.47217,445 Diamondback Energy Inc. USA USD 21,974,992 0.73

111,560,148 3.73

Food, Beverage & Tobacco1,160,267 Monster Beverage Corp. USA USD 51,446,239 1.72

202,391 Constellation Brands Inc., A USA USD 31,028,564 1.04510,280 Pinnacle Foods Inc. USA USD 27,274,466 0.91449,964 Reynolds American Inc. USA USD 25,215,983 0.85

134,965,252 4.52

Health Care Equipment & Services454,609 Edwards Lifesciences Corp. USA USD 42,596,863 1.42142,370 UnitedHealth Group Inc. USA USD 22,784,895 0.76314,205 Medtronic PLC USA USD 22,380,822 0.75179,816 Nevro Corp. USA USD 13,065,431 0.44

50,710 Envision Healthcare Corp. USA USD 3,209,436 0.11

104,037,447 3.48

Insurance506,999 Athene Holding Ltd., A BMU USD 24,330,882 0.81

Materials145,863 Martin Marietta Materials Inc. USA USD 32,313,031 1.08249,742 Ecolab Inc. USA USD 29,274,757 0.98852,855 Axalta Coating Systems Ltd. USA USD 23,197,656 0.78

84,785,444 2.84

Media662,786 The Walt Disney Co. USA USD 69,075,557 2.31174,098 Charter Communications Inc., A USA USD 50,126,296 1.68346,141 Comcast Corp., A USA USD 23,901,036 0.80

143,102,889 4.79

Pharmaceuticals, Biotechnology & Life Sciences989,604 Celgene Corp. USA USD 114,546,663 3.84338,026 Allergan PLC USA USD 70,988,840 2.38269,757 Tesaro Inc. USA USD 36,276,921 1.21420,203 Eli Lilly & Co. USA USD 30,905,931 1.04525,805 Bristol-Myers Squibb Co. USA USD 30,728,044 1.03

97,364 Biogen Inc. USA USD 27,610,483 0.92224,320 Incyte Corp. USA USD 22,492,566 0.75

39,951 Regeneron Pharmaceuticals Inc. USA USD 14,665,613 0.49997,801 Heron Therapeutics Inc. USA USD 13,071,193 0.44


— Franklin U.S. Opportunities Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Pharmaceuticals, Biotechnology & Life Sciences (continued)102,950 Alexion Pharmaceuticals Inc. USA USD 12,595,933 0.42

373,882,187 12.52

Real Estate140,617 Equinix Inc. USA USD 50,257,922 1.68432,811 American Tower Corp. USA USD 45,739,466 1.53

95,997,388 3.21

Retailing182,260 Amazon.com Inc. USA USD 136,671,306 4.58

23,712 The Priceline Group Inc. USA USD 34,763,215 1.16

171,434,521 5.74

Semiconductors & Semiconductor Equipment304,766 Broadcom Ltd. SGP USD 53,873,486 1.80351,021 NVIDIA Corp. USA USD 37,467,981 1.25136,202 Xilinx Inc. USA USD 8,222,515 0.28106,517 Analog Devices Inc. USA USD 7,735,265 0.26

107,299,247 3.59

Software & Services1,029,057 Facebook Inc., A USA USD 118,393,008 3.96

146,643 Alphabet Inc., A USA USD 116,207,245 3.891,452,687 Visa Inc., A USA USD 113,338,640 3.801,091,431 Mastercard Inc., A USA USD 112,690,251 3.771,686,915 Microsoft Corp. USA USD 104,824,898 3.51

522,971 Adobe Systems Inc. USA USD 53,839,864 1.80598,720 Salesforce.com Inc. USA USD 40,988,371 1.37490,455 ServiceNow Inc. USA USD 36,460,425 1.22210,222 Tyler Technologies Inc. USA USD 30,013,395 1.01

33,241 Alphabet Inc., C USA USD 25,656,069 0.86221,129 Fiserv Inc. USA USD 23,501,590 0.79286,673 Electronic Arts Inc. USA USD 22,578,365 0.76

89,335 CoStar Group Inc. USA USD 16,838,754 0.56327,541 BroadSoft Inc. USA USD 13,511,066 0.45137,253 Alibaba Group Holding Ltd., ADR CHN USD 12,052,186 0.40217,505 Mobileye NV ISR USD 8,291,291 0.28

849,185,418 28.43

Technology Hardware & Equipment1,190,025 Apple Inc. USA USD 137,828,695 4.62

179,736 Palo Alto Networks Inc. USA USD 22,475,987 0.75

160,304,682 5.37

Telecommunication Services742,701 SBA Communications Corp. USA USD 76,691,305 2.57649,702 T-Mobile U.S. Inc. USA USD 37,364,362 1.25

114,055,667 3.82

Transportation102,645 Allegiant Travel Co. USA USD 17,080,128 0.57

TOTAL SHARES 2,932,647,793 98.18


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESAutomobiles & Components

1,918,768 Proterra Inc., pfd., 5, 144A ** USA USD 9,663,376 0.32

Pharmaceuticals, Biotechnology & Life Sciences146,777,580 Acerta Pharma BV ** NLD USD 5,467,172 0.18

Software & Services2,719,500 Tanium Inc., pfd., G ** USA USD 9,672,356 0.33

TOTAL SHARES 24,802,904 0.83





— Franklin U.S. Opportunities Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


29,900 L Brands Inc. USA USD 1,968,616 1.2925,200 Dollar Tree Inc. USA USD 1,944,936 1.2731,700 Grand Canyon Education Inc. USA USD 1,852,865 1.2127,400 Ross Stores Inc. USA USD 1,797,440 1.18

6,400 O’Reilly Automotive Inc. USA USD 1,781,824 1.1741,700 Norwegian Cruise Line Holdings Ltd. USA USD 1,773,501 1.1622,000 Tractor Supply Co. USA USD 1,667,820 1.0910,800 Buffalo Wild Wings Inc. USA USD 1,667,520 1.0924,700 Delphi Automotive PLC GBR USD 1,663,545 1.0935,533 Newell Brands Inc. USA USD 1,586,548 1.0418,400 Marriott International Inc., A USA USD 1,521,312 1.0027,800 Dick’s Sporting Goods Inc. USA USD 1,476,180 0.9767,700 Hanesbrands Inc. USA USD 1,460,289 0.9645,182 IMAX Corp. USA USD 1,418,715 0.9319,000 Liberty Broadband Corp., C USA USD 1,407,330 0.92

800 NVR Inc. USA USD 1,335,200 0.877,400 Advance Auto Parts Inc. USA USD 1,251,488 0.82

28,800 Zoe’s Kitchen Inc. USA USD 690,912 0.45103,800 Global Eagle Entertainment Inc. USA USD 670,548 0.44

3,400 Dominos Pizza Inc. USA USD 541,416 0.363,500 Expedia Inc. USA USD 396,480 0.26

29,874,485 19.57

Consumer Staples37,900 Pinnacle Foods Inc. USA USD 2,025,755 1.3317,400 Post Holdings Inc. USA USD 1,398,786 0.9218,606 TreeHouse Foods Inc. USA USD 1,343,167 0.8810,900 Molson Coors Brewing Co., B USA USD 1,060,679 0.6913,500 Monster Beverage Corp. USA USD 598,590 0.39

9,000 Church & Dwight Co. Inc. USA USD 397,710 0.26

6,824,687 4.47

Energy54,490 Cabot Oil & Gas Corp., A USA USD 1,272,886 0.8468,000 Superior Energy Services Inc. USA USD 1,147,840 0.7529,800 Noble Energy Inc. USA USD 1,134,188 0.74

2,800 Concho Resources Inc. USA USD 371,280 0.24

3,926,194 2.57

Financials18,400 Signature Bank USA USD 2,763,680 1.8116,000 Affiliated Managers Group Inc. USA USD 2,324,800 1.5239,800 Arthur J. Gallagher & Co. USA USD 2,068,008 1.3516,300 Willis Towers Watson PLC USA USD 1,993,164 1.3141,000 Lazard Ltd., A USA USD 1,684,690 1.1013,100 Moody’s Corp. USA USD 1,234,937 0.81

6,100 SVB Financial Group USA USD 1,047,126 0.696,300 MarketAxess Holdings Inc. USA USD 925,596 0.61

14,042,001 9.20

Health Care36,200 Quintiles IMS Holdings Inc. USA USD 2,753,010 1.8025,900 Edwards Lifesciences Corp. USA USD 2,426,830 1.5913,100 The Cooper Cos. Inc. USA USD 2,291,583 1.5055,400 Hologic Inc. USA USD 2,222,648 1.46

5,100 Mettler-Toledo International Inc. USA USD 2,134,656 1.4033,274 Mallinckrodt PLC USA USD 1,657,711 1.0922,200 Nevro Corp. USA USD 1,613,052 1.0624,200 DaVita Inc. USA USD 1,553,640 1.0223,838 DexCom Inc. USA USD 1,423,129 0.93

9,426 Tesaro Inc. USA USD 1,267,608 0.8319,600 DENTSPLY SIRONA Inc. USA USD 1,131,508 0.7410,513 Incyte Corp. USA USD 1,054,138 0.69

6,100 Waters Corp. USA USD 819,779 0.5416,400 Cerner Corp. USA USD 776,868 0.5119,037 Insulet Corp. USA USD 717,314 0.4730,600 Revance Therapeutics Inc. USA USD 633,420 0.42

7,028 BioMarin Pharmaceutical Inc. USA USD 582,200 0.389,038 Penumbra Inc. USA USD 576,624 0.389,009 Envision Healthcare Corp. USA USD 570,180 0.37

17,300 Patheon NV USA USD 496,683 0.3353,000 Pfenex Inc. USA USD 480,710 0.3116,543 Acadia Pharmaceuticals Inc. USA USD 477,100 0.3131,300 Impax Laboratories Inc. USA USD 414,725 0.2730,857 Heron Therapeutics Inc. USA USD 404,227 0.2610,029 Neurocrine Biosciences Inc. USA USD 388,122 0.2560,000 TherapeuticsMD Inc. USA USD 346,200 0.23

6,500 AveXis Inc. USA USD 310,245 0.207,400 iRhythm Technologies Inc. USA USD 222,000 0.15

48,000 Celldex Therapeutics Inc. USA USD 169,920 0.11


— Franklin U.S. Small-Mid Cap Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Health Care (continued)2,500 Mednax Inc. USA USD 166,650 0.11

30,082,480 19.71

Industrials16,800 Roper Technologies Inc. USA USD 3,075,744 2.0165,021 IHS Markit Ltd. USA USD 2,302,394 1.5143,800 Robert Half International Inc. USA USD 2,136,564 1.4030,600 Genesee & Wyoming Inc. USA USD 2,123,946 1.3934,800 Hexcel Corp. USA USD 1,790,112 1.1714,400 Dun & Bradstreet Corp. USA USD 1,747,008 1.1437,800 HD Supply Holdings Inc. USA USD 1,606,878 1.05

6,300 Acuity Brands Inc. USA USD 1,454,418 0.9513,300 J.B. Hunt Transport Services Inc. USA USD 1,291,031 0.8515,000 Verisk Analytics Inc. USA USD 1,217,550 0.80

8,500 Stanley Black & Decker Inc. USA USD 974,865 0.645,199 Allegiant Travel Co. USA USD 865,113 0.57

25,400 DigitalGlobe Inc. USA USD 727,710 0.485,500 Univar Inc. USA USD 156,035 0.10

21,469,368 14.06

Information Technology68,240 CSRA Inc. USA USD 2,172,762 1.4211,500 CoStar Group Inc. USA USD 2,167,635 1.4234,900 Vantiv Inc., A USA USD 2,080,738 1.3623,900 Fidelity National Information Services Inc. USA USD 1,807,796 1.1812,502 FleetCor Technologies Inc. USA USD 1,769,283 1.1623,500 ServiceNow Inc. USA USD 1,746,990 1.1547,900 GoDaddy Inc., A USA USD 1,674,105 1.1012,700 Palo Alto Networks Inc. USA USD 1,588,135 1.0424,900 Cognex Corp. USA USD 1,584,138 1.0447,600 2U Inc. USA USD 1,435,140 0.9413,300 Lam Research Corp. USA USD 1,406,209 0.9219,900 Microchip Technology Inc. USA USD 1,276,585 0.8419,224 ViaSat Inc. USA USD 1,273,013 0.8350,200 Bottomline Technologies (de) Inc. USA USD 1,256,004 0.8216,500 Analog Devices Inc. USA USD 1,198,230 0.7912,200 ANSYS Inc. USA USD 1,128,378 0.7412,800 KLA-Tencor Corp. USA USD 1,007,104 0.6611,400 Electronic Arts Inc. USA USD 897,864 0.5912,570 Workday Inc., A USA USD 830,751 0.5411,700 Proofpoint Inc. USA USD 826,605 0.54

3,100 Alliance Data Systems Corp. USA USD 708,350 0.4629,000 Atlassian Corp. PLC AUS USD 698,320 0.4628,500 Integrated Device Technology Inc. USA USD 671,460 0.44

7,000 Cavium Inc. USA USD 437,080 0.2919,300 Zendesk Inc. USA USD 409,160 0.27

8,400 Q2 Holdings Inc. USA USD 242,340 0.162,100 Skyworks Solutions Inc. USA USD 156,786 0.10

10,500 Square Inc., A USA USD 143,115 0.091,000 Monolithic Power Systems USA USD 81,930 0.054,300 Quantenna Communications Inc. USA USD 77,959 0.05

32,753,965 21.45

Materials9,600 Martin Marietta Materials Inc. USA USD 2,126,688 1.39

74,967 Axalta Coating Systems Ltd. USA USD 2,039,103 1.347,500 International Flavors & Fragrances Inc. USA USD 883,725 0.58

15,000 Ingevity Corp. USA USD 822,900 0.54

5,872,416 3.85

Real Estate8,377 Equinix Inc. USA USD 2,994,024 1.96

20,000 CBRE Group Inc. USA USD 629,800 0.41

3,623,824 2.37

Telecommunication Services12,800 SBA Communications Corp. USA USD 1,321,728 0.87

TOTAL SHARES 149,791,148 98.12







Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESConsumer Discretionary

121,759 DraftKings Inc., pfd., D-1 ** USA USD 763,916 0.5072,293 Proterra Inc., pfd., 5, 144A ** USA USD 364,085 0.2449,512 DraftKings Inc., pfd., D ** USA USD 224,131 0.15

1,352,132 0.89










Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESBanks

16,000 U.S. Bancorp, pfd., G, 6.00% USA USD 403,360 0.29

Paper & Forest Products138 Verso Corp., A USA USD 979 0.00



583 Halcon Resources Corp., wts., 09/09/20 USA USD 1,207 0.00




4,070,000 FNMA, 3.00%, 01/01/46 USA USD 4,040,607 2.874,020,000 FHLMC, 3.00%, 01/01/46 USA USD 3,989,360 2.843,645,368 FHLMC, 4.00%, 06/01/46 USA USD 3,831,314 2.723,652,995 FNMA, 3.50%, 07/01/46 USA USD 3,746,507 2.662,907,549 GNMA II, SF, 3.50%, 08/20/46 USA USD 3,024,875 2.152,808,386 FHLMC, 4.00%, 08/01/46 USA USD 2,951,513 2.102,600,000 GNMA II, SF, 3.00%, 01/01/46 USA USD 2,630,883 1.872,522,620 FHLMC, 3.50%, 08/01/46 USA USD 2,584,642 1.841,135,357 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQA1, M2, FRN, 3.406%,

03/25/28 † USA USD 1,158,685 0.82900,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQ1, M3, FRN, 4.556%,

03/25/25 † USA USD 953,767 0.68920,000 FHLMC Structured Agency Credit Risk Debt Notes, 2016-DNA2, M2, FRN, 2.956%,

10/25/28 † USA USD 931,965 0.66920,000 Dryden 33 Senior Loan Fund, 2014-33A, AR, 144A, FRN, 2.316%, 10/15/28 † CYM USD 921,297 0.66820,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA3, M2, FRN, 3.606%,

04/25/28 † USA USD 844,031 0.60740,000 Carlyle Global Market Strategies CLO Ltd., 2014-4A, A1, 144A, FRN, 2.38%,

10/15/26 † USA USD 740,984 0.53740,000 Capital One Multi-Asset Execution Trust, 2007-A2, A2, FRN, 0.784%, 12/16/19 † USA USD 740,012 0.53720,000 FHLMC Structured Agency Credit Risk Debt Notes, 2016-HQA2, M2, FRN, 3.006%,

11/25/28 † USA USD 735,153 0.52700,000 FHLMC, 3.50%, 01/01/46 USA USD 716,365 0.51614,286 Dryden Senior Loan Fund, 2015-38A, A, 144A, FRN, 2.31%, 07/15/27 † CYM USD 614,550 0.44600,000 Bear Stearns Commercial Mortgage Securities Trust, 2007-PW16, AM, FRN,

5.711%, 06/11/40 † USA USD 607,902 0.43570,000 Morgan Stanley Capital I Trust, 2007-IQ16, AM, FRN, 6.051%, 12/12/49 † USA USD 587,157 0.42570,000 FNMA, 3.50%, 01/01/46 USA USD 583,896 0.42550,000 Cornerstone CLO Ltd., 2007-1A, B, 144A, FRN, 1.83%, 07/15/21 † USA USD 547,195 0.39500,000 FHLMC Structured Agency Credit Risk Debt Notes, 2016-HQA1, M2, FRN, 3.506%,

09/25/28 † USA USD 513,761 0.37500,000 Morgan Stanley Capital I Trust, 2007-IQ16, AMA, FRN, 6.047%, 12/12/49 † USA USD 512,980 0.36480,000 Chase Issuance Trust, 2013-A6, A6, FRN, 1.124%, 07/15/20 † USA USD 481,776 0.34470,000 Banc of America Commercial Mortgage Trust, 2007-3, AM, FRN, 5.602%,

06/10/49 † USA USD 475,623 0.34450,000 West CLO Ltd., 2014-1A, B, 144A, FRN, 3.732%, 07/18/26 † USA USD 445,914 0.32440,000 Voya CLO Ltd., 2014-4A, A1, 144A, FRN, 2.381%, 10/14/26 † CYM USD 440,158 0.31440,000 Ares IIIR/IVR CLO Ltd., 2007-3RA, B, 144A, FRN, 1.25%, 04/16/21 † USA USD 437,972 0.31453,000 Bear Stearns Commercial Mortgage Securities Trust, 2006-PW11, AJ, FRN,

5.436%, 03/11/39 † USA USD 435,628 0.31420,000 American Express Credit Account Master Trust, 2008-2, A, FRN, 1.964%,

09/15/20 † USA USD 425,272 0.30400,000 FHLMC, 4.00%, 01/01/46 USA USD 419,951 0.30400,000 Birchwood Park CLO Ltd., 2014-1A, B1, 144A, FRN, 3.03%, 07/15/26 † USA USD 404,452 0.29400,000 Voya CLO Ltd., 2015-1A, A1, 144A, FRN, 2.362%, 04/18/27 † USA USD 400,484 0.29350,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-DN1, M3, FRN, 4.906%,

01/25/25 † USA USD 369,097 0.26359,400 Catamaran CLO Ltd., 2014-2A, BR, 144A, FRN, 3.658%, 10/18/26 † CYM USD 360,457 0.26350,000 Invitation Homes Trust, 2015-SFR3, C, 144A, FRN, 2.736%, 08/17/32 † USA USD 350,965 0.25315,046 FHLMC, 5.00%, 02/01/39 USA USD 342,927 0.24340,000 Colony American Homes, 2014-2A, C, 144A, FRN, 2.636%, 07/17/31 † USA USD 339,773 0.24320,000 American Express Credit Account Secured Note Trust, 2012-4, A, FRN, 0.944%,

05/15/20 † USA USD 320,055 0.23313,924 CIFC Funding Ltd., 2007-3A, A1J, 144A, FRN, 1.284%, 07/26/21 † USA USD 313,701 0.22310,000 Citibank Credit Card Issuance Trust, 2013-A7, A7, FRN, 1.094%, 09/10/20 † USA USD 311,229 0.22304,326 Colony MFM Trust, 2014-1, A, 144A, 2.543%, 04/20/50 USA USD 302,585 0.22300,000 Limerock CLO III LLC, 2014-3A, B, 144A, FRN, 4.081%, 10/20/26 † USA USD 300,474 0.21297,056 Colony American Homes, 2014-1A, A, 144A, FRN, 2.136%, 05/17/31 † USA USD 296,968 0.21300,000 American Airlines Pass Through Trust, first lien, 2016-2, AA, 3.20%, 06/15/28 USA USD 292,125 0.21285,714 BlueMountain CLO Ltd., 2011-1A, B, 144A, FRN, 2.911%, 08/16/22 † CYM USD 286,234 0.20250,000 Fannie Mae Connecticut Avenue Securities, 2014-C04, 2M2, FRN, 5.756%,

11/25/24 † USA USD 271,138 0.19238,626 FNMA, 6.00%, 02/01/37 USA USD 270,783 0.19270,000 Tricon American Homes Trust, 2015-SFR1, C, 144A, FRN, 2.636%, 05/17/32 † USA USD 268,295 0.19260,000 Core Industrial Trust, 2015-CALW, A, 144A, 3.04%, 02/10/34 USA USD 265,311 0.19


— Franklin U.S. Total Return Fund —




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Asset-Backed Securities (continued)258,000 Cent CLO, 2013-17A, A1, 144A, FRN, 2.187%, 01/30/25 † USA USD 258,044 0.18250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2016-DNA1, M2, FRN, 3.656%,

07/25/28 † USA USD 257,474 0.18250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2015-HQA2, M2, FRN, 3.556%,

05/25/28 † USA USD 256,713 0.18250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2014-DN1, M2, FRN, 2.956%,

02/25/24 † USA USD 255,843 0.18250,000 Invitation Homes Trust, 2015-SFR1, B, 144A, FRN, 2.586%, 03/17/32 † USA USD 251,001 0.18266,937 Citigroup Commercial Mortgage Trust, 2006-C5, AJ, 5.482%, 10/15/49 USA USD 250,593 0.18250,000 FHLMC Structured Agency Credit Risk Debt Notes, 2016-HQA3, M2, FRN, 2.106%,

03/25/29 † USA USD 249,508 0.18250,000 GSAA Home Equity Trust, 2005-5, M3, FRN, 1.701%, 02/25/35 † USA USD 242,835 0.17234,571 Cornerstone CLO Ltd., 2007-1A, A1J, 144A, FRN, 1.28%, 07/15/21 † USA USD 234,768 0.17250,000 Commercial Mortgage Trust, 2006-GG7, AJ, FRN, 5.774%, 07/10/38 † USA USD 231,983 0.17230,000 American Express Credit Account Master Trust, 2012-1, A, FRN, 0.974%,

01/15/20 † USA USD 230,149 0.16220,000 Apidos CDO, 2013-14A, C2, 144A, 4.85%, 04/15/25 USA USD 221,300 0.16225,000 G-Force LLC, 2005-RRA, C, 144A, 5.20%, 08/22/36 USA USD 217,820 0.16200,000 GNMA II, SF, 3.50%, 01/01/46 USA USD 207,776 0.15194,854 FNMA, ARM, 1.855%, 09/01/34 USA USD 205,791 0.15200,000 BlueMountain CLO Ltd., 2011-1A, C, 144A, FRN, 3.911%, 08/16/22 † CYM USD 200,664 0.14197,680 ARCap REIT Inc., 2004-RR3, A2, 144A, FRN, 5.377%, 09/21/45 † USA USD 200,048 0.14200,000 Cumberland Park CLO Ltd., 2015-2A, C, 144A, FRN, 3.731%, 07/20/26 † USA USD 199,666 0.14200,000 United Airlines Pass Through Trust, first lien, 2016-1, AA, 3.10%, 01/07/30 USA USD 193,250 0.14190,000 Galaxy XV CLO Ltd., 2013-15A, A, 144A, FRN, 2.13%, 04/15/25 † USA USD 190,156 0.14170,000 West CLO Ltd., 2014-1A, A2, 144A, FRN, 2.982%, 07/18/26 † USA USD 169,636 0.12151,274 FNMA, 4.50%, 12/01/40 USA USD 163,224 0.12152,000 Eaton Vance CDO Ltd., 2014-1A, A, 144A, FRN, 2.33%, 07/15/26 † USA USD 152,331 0.11144,060 Ameriquest Mortgage Securities Inc. Asset-Backed Pass-Through Certificates,

2004-R4, M1, FRN, 1.581%, 06/25/34 † USA USD 141,848 0.10142,538 FNMA, 2005-122, FN, FRN, 1.106%, 01/25/36 † USA USD 141,448 0.10121,000 Fannie Mae Connecticut Avenue Securities, 2014-C04, 1M1, FRN, 5.656%,

11/25/24 † USA USD 131,531 0.09130,000 GE Capital Commercial Mortgage Corp. Trust, 2007-C1, AM, FRN, 5.606%,

12/10/49 † USA USD 130,186 0.09126,060 American Home Mortgage Investment Trust, 2004-3, 4A, FRN, 2.758%, 10/25/34 † USA USD 123,288 0.09122,174 Banc of America Commercial Mortgage Trust, 2006-4, AJ, 5.695%, 07/10/46 USA USD 121,973 0.09120,187 Octagon Investment Partners XXIII Ltd., 2015-1A, A1, 144A, FRN, 2.30%,

07/15/27 † USA USD 120,153 0.09120,000 Capital One Multi-Asset Execution Trust, 2007-A1, A1, FRN, 0.754%, 11/15/19 † USA USD 120,001 0.09114,102 Octagon Investment Partners XXIII Ltd., 2015-1A, A2, 144A, FRN, 2.30%,

07/15/27 † USA USD 114,031 0.08109,500 Eaton Vance CDO Ltd., 2014-1A, B, 144A, FRN, 2.93%, 07/15/26 † USA USD 109,244 0.08

93,387 FHLMC, 5.50%, 09/01/35 USA USD 103,619 0.07100,000 Eleven Madison Trust Mortgage Trust, 2015-11MD, A, 144A, FRN, 3.555%,

09/10/35 † USA USD 103,020 0.07104,957 Argent Securities Inc. Asset-Backed Pass-Through Certificates, 2005-W2, A2C, FRN,

1.116%, 10/25/35 † USA USD 101,421 0.07100,000 Invitation Homes Trust, 2015-SFR2, C, 144A, FRN, 2.68%, 06/17/32 † USA USD 100,265 0.07

91,900 Eaton Vance CDO Ltd., 2014-1A, C, 144A, FRN, 3.88%, 07/15/26 † USA USD 92,355 0.0790,839 American Homes 4 Rent, 2014-SFR1, A, 144A, FRN, 1.736%, 06/17/31 † USA USD 90,571 0.0683,995 FNMA, ARM, 3.634%, 11/01/32 USA USD 86,239 0.0682,550 JPMorgan Chase Commercial Mortgage Securities Trust, 2006-CB17, AM, 5.464%,

12/12/43 USA USD 82,526 0.0682,725 Chase Funding Trust, 2004-2, 2A2, FRN, 1.256%, 02/26/35 † USA USD 75,757 0.0575,646 Citigroup Mortgage Loan Trust Inc., 2013-A, A, 144A, FRN, 3.00%, 05/25/42 † USA USD 75,417 0.0565,725 Green Tree Financial Corp., 1996-9, M1, 7.63%, 08/15/27 USA USD 71,522 0.0570,000 Highbridge Loan Management Ltd., 2013-2A, B2, 144A, 5.80%, 10/20/24 USA USD 70,901 0.0570,000 Emerson Park CLO Ltd., 2013-1A, C2, 144A, 5.64%, 07/15/25 USA USD 70,714 0.0563,884 FNMA, 5.00%, 10/01/34 USA USD 69,819 0.0564,591 CSMC, 2009-15R, 3A1, 144A, FRN, 2.962%, 03/26/36 † USA USD 64,102 0.05

155,000 JPMorgan Chase Commercial Mortgage Securities Trust, 2006-CB16, B, FRN,5.672%, 05/12/45 † USA USD 61,354 0.04

60,627 Home Equity Mortgage Trust, 2004-4, M3, FRN, 1.731%, 12/25/34 † USA USD 58,075 0.0459,437 CWABS Inc. Asset-Backed Certificates Trust, 2004-6, 1A2, FRN, 1.496%,

12/25/34 † USA USD 57,336 0.0453,834 Greenwich Capital Commercial Funding Corp., 2006-GG7, AM, FRN, 5.774%,

07/10/38 † USA USD 53,819 0.0452,471 Morgan Stanley Capital I Trust, 2006-HQ8, AJ, FRN, 5.46%, 03/12/44 † USA USD 52,723 0.04

265,878 GMAC Commercial Mortgage Securities Inc. Trust, 2005-C1, B, 4.936%, 05/10/43 USA USD 44,936 0.0337,474 FNMA, 6.00%, 05/01/36 USA USD 42,620 0.0341,837 BlueMountain CLO Ltd., 2013-3A, A, 144A, FRN, 2.287%, 10/29/25 † USA USD 41,895 0.0342,143 CWABS Inc. Asset-Backed Certificates, 2004-1, M1, FRN, 1.506%, 03/25/34 † USA USD 40,910 0.0339,597 Credit Suisse First Boston Mortgage Securities Corp., 2004-6, 3A1, 5.00%,

09/25/19 USA USD 40,681 0.0336,965 FNMA, ARM, 2.716%, 02/01/34 USA USD 38,935 0.0333,525 FNMA, 6.00%, 02/01/36 USA USD 37,973 0.0335,977 Morgan Stanley ABS Capital I Inc. Trust, 2005-WMC, M2, FRN, 1.491%,

01/25/35 † USA USD 35,536 0.0328,510 GNMA, SF, 5.00%, 05/15/34 USA USD 31,522 0.0229,063 Bear Stearns Commercial Mortgage Securities Trust, 2006-PW13, AJ, 5.611%,

09/11/41 USA USD 29,043 0.02






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Asset-Backed Securities (continued)28,556 Wells Fargo Mortgage Backed Securities Trust, 2004-W, A9, FRN, 3.004%,

11/25/34 † USA USD 28,963 0.0221,347 FNMA, 7.50%, 02/01/30 USA USD 21,947 0.0216,848 FHLMC, 7.00%, 05/01/32 USA USD 18,625 0.0114,938 FNMA, 5.50%, 04/01/35 USA USD 16,597 0.0116,647 Bear Stearns ALT-A Trust, 2004-13, A2, FRN, 1.636%, 11/25/34 † USA USD 16,014 0.0114,410 GNMA, ARM, 2.125%, 09/20/29 USA USD 14,983 0.0112,080 FNMA, 6.00%, 06/01/38 USA USD 13,675 0.0111,161 FHLMC, 6.50%, 03/01/38 USA USD 13,099 0.0110,625 FNMA, 6.00%, 10/01/34 USA USD 12,265 0.0110,552 FNMA, ARM, 2.785%, 12/01/34 USA USD 11,124 0.01

9,803 FNMA, 5.50%, 04/01/36 USA USD 10,894 0.019,483 GNMA, SF, 5.50%, 06/15/34 USA USD 10,679 0.019,063 FHLMC, 5.50%, 08/01/33 USA USD 10,184 0.018,920 FNMA, ARM, 2.80%, 12/01/34 USA USD 9,465 0.017,659 FHLMC, 4.50%, 04/01/20 USA USD 7,907 0.016,689 FNMA, 6.50%, 01/01/36 USA USD 7,572 0.016,835 FHLMC, ARM, 3.037%, 09/01/32 USA USD 7,224 0.015,816 GNMA, ARM, 3.50%, 08/20/20 USA USD 5,905 0.005,012 GNMA, 6.50%, 09/15/32 USA USD 5,729 0.005,292 FNMA, 5.00%, 04/01/20 USA USD 5,472 0.004,552 GNMA, SF, 6.50%, 11/15/32 USA USD 5,205 0.004,406 Wells Fargo Mortgage Backed Securities Trust, 2007-3, 3A1, 5.50%, 04/25/22 USA USD 4,515 0.003,718 GNMA, SF, 6.00%, 03/15/33 USA USD 4,306 0.006,449 FNMA, 5.00%, 01/01/20 USA USD 6,603 0.002,746 FNMA, 5.50%, 09/01/19 USA USD 2,838 0.003,424 FNMA, 4.50%, 04/01/19 USA USD 3,521 0.002,167 FHLMC, 4.50%, 09/01/18 USA USD 2,224 0.002,028 FHLMC, 4.50%, 03/01/20 USA USD 2,081 0.002,020 FNMA, 5.00%, 05/01/18 USA USD 2,069 0.001,577 GNMA, SF, 5.50%, 07/15/33 USA USD 1,783 0.001,049 Chase Funding Trust, 2003-5, 2A2, FRN, 1.356%, 07/25/33 † USA USD 978 0.00

473 FHLMC, 5.50%, 06/01/18 USA USD 473 0.00313 FHLMC, 5.00%, 03/01/19 USA USD 321 0.00160 GNMA, SF, 5.00%, 03/15/34 USA USD 176 0.00

56,644,046 40.28

Corporate Bonds1,000,000 Toys R Us Inc., senior bond, 7.375%, 10/15/18 USA USD 990,000 0.701,000,000 Wells Fargo & Co., senior note, 3.00%, 04/22/26 USA USD 954,031 0.68

800,000 Morgan Stanley, senior note, 3.875%, 01/27/26 USA USD 808,498 0.57800,000 The Goldman Sachs Group Inc., senior note, 3.75%, 02/25/26 USA USD 802,756 0.57800,000 Exxon Mobil Corp., senior note, 2.709%, 03/06/25 USA USD 778,589 0.55800,000 Anheuser-Busch InBev Worldwide Inc., senior bond, 3.75%, 07/15/42 BEL USD 720,944 0.51700,000 Springleaf Finance Corp., senior note, 6.00%, 06/01/20 USA USD 712,250 0.51700,000 Citigroup Inc., senior note, 3.40%, 05/01/26 USA USD 680,525 0.48600,000 Liberty Mutual Group Inc., senior note, 144A, 4.95%, 05/01/22 USA USD 654,779 0.47600,000 Teachers Insurance & Annuity Assn. of America, sub. bond, 144A, 4.90%, 09/15/44 USA USD 649,316 0.46600,000 The Kroger Co., senior note, 4.00%, 02/01/24 USA USD 626,357 0.45600,000 Realty Income Corp., senior bond, 4.125%, 10/15/26 USA USD 618,021 0.44600,000 Kraft Heinz Foods Co., senior note, 3.50%, 07/15/22 USA USD 609,379 0.43600,000 JPMorgan Chase & Co., junior sub. bond, X, 6.10% to 10/01/24, FRN thereafter,

Perpetual USA USD 607,875 0.43600,000 Bank of America Corp., senior note, 3.50%, 04/19/26 USA USD 592,317 0.42600,000 Ford Motor Credit Co. LLC, senior note, 3.096%, 05/04/23 USA USD 579,622 0.41500,000 CSC Holdings LLC, senior note, 8.625%, 02/15/19 USA USD 553,750 0.39500,000 CSC Holdings LLC, senior bond, 7.625%, 07/15/18 USA USD 535,000 0.38500,000 LYB International Finance BV, senior note, 4.00%, 07/15/23 USA USD 523,260 0.37500,000 Beazer Homes USA Inc., senior note, 5.75%, 06/15/19 USA USD 520,000 0.37500,000 Aflac Inc., senior bond, 3.625%, 06/15/23 USA USD 517,464 0.37500,000 HSBC Holdings PLC, senior note, 4.30%, 03/08/26 GBR USD 517,060 0.37500,000 GE Capital International Funding Co., senior bond, 3.373%, 11/15/25 USA USD 508,161 0.36500,000 Avon Products Inc., senior note, 6.60%, 03/15/20 USA USD 507,500 0.36500,000 JPMorgan Chase & Co., senior note, 3.25%, 09/23/22 USA USD 505,477 0.36500,000 HSBC Holdings PLC, senior note, 3.60%, 05/25/23 GBR USD 503,050 0.36500,000 American Tower Corp., senior bond, 3.50%, 01/31/23 USA USD 501,670 0.36500,000 Marriott International Inc., senior bond, 3.75%, 10/01/25 USA USD 500,915 0.36500,000 Morgan Stanley, senior bond, 4.30%, 01/27/45 USA USD 499,301 0.36500,000 Express Scripts Holding Co., senior bond, 3.50%, 06/15/24 USA USD 494,319 0.35500,000 Petrobras Global Finance BV, senior note, FRN, 3.873%, 03/17/20 † BRA USD 491,250 0.35500,000 Tenet Healthcare Corp., senior note, 5.00%, 03/01/19 USA USD 490,000 0.35500,000 Maxim Integrated Products Inc., senior note, 3.375%, 03/15/23 USA USD 488,593 0.35500,000 The Southern Co., senior bond, 3.25%, 07/01/26 USA USD 486,880 0.35500,000 Capital One Financial Corp., senior note, 3.20%, 02/05/25 USA USD 484,847 0.34500,000 AT&T Inc., senior bond, 4.50%, 05/15/35 USA USD 483,831 0.34500,000 CNOOC Finance 2013 Ltd., senior note, 3.00%, 05/09/23 CHN USD 483,560 0.34500,000 Sinopec Group Overseas Development 2015 Ltd., senior note, 144A, 3.25%,

04/28/25 CHN USD 479,747 0.34500,000 Intesa Sanpaolo SpA, sub. note, 144A, 5.71%, 01/15/26 ITA USD 476,637 0.34500,000 EDF SA, sub. note, 144A, 5.25% to 01/29/23, FRN thereafter, Perpetual FRA USD 473,522 0.34500,000 Home Depot Inc., senior note, 2.125%, 09/15/26 USA USD 461,073 0.33






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Corporate Bonds (continued)400,000 Lockheed Martin Corp., senior bond, 4.70%, 05/15/46 USA USD 435,983 0.31400,000 PerkinElmer Inc., senior note, 5.00%, 11/15/21 USA USD 432,173 0.31400,000 Banca Monte dei Paschi di Siena SpA, secured note, Reg S, 2.125%, 11/26/25 ITA EUR 425,394 0.30400,000 Dollar General Corp., senior bond, 4.15%, 11/01/25 USA USD 411,764 0.29400,000 Dominion Resources Inc., senior bond, 3.90%, 10/01/25 USA USD 408,575 0.29400,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured note, first lien,

144A, 3.48%, 06/01/19 USA USD 408,454 0.29400,000 Sempra Energy, senior note, 3.75%, 11/15/25 USA USD 404,256 0.29400,000 Three Gorges Finance I Cayman Islands Ltd., senior note, 144A, 3.70%, 06/10/25 CHN USD 402,220 0.29400,000 Norddeutsche Landesbank Girozentrale, secured note, 144A, 2.00%, 02/05/19 DEU USD 401,528 0.29400,000 Alibaba Group Holding Ltd., senior bond, 4.50%, 11/28/34 CHN USD 401,392 0.29400,000 AT&T Inc., senior note, 3.95%, 01/15/25 USA USD 400,882 0.29400,000 HCP Inc., senior bond, 3.875%, 08/15/24 USA USD 399,976 0.28400,000 Royal Bank of Canada, secured note, 2.10%, 10/14/20 CAN USD 398,229 0.28400,000 Cisco Systems Inc., senior note, 2.60%, 02/28/23 USA USD 396,916 0.28400,000 Actavis Funding SCS, senior bond, 4.55%, 03/15/35 USA USD 396,528 0.28400,000 JPMorgan Chase & Co., senior bond, 3.30%, 04/01/26 USA USD 392,920 0.28400,000 MetLife Inc., senior note, 3.00%, 03/01/25 USA USD 392,340 0.28400,000 Kookmin Bank, secured note, Reg S, 2.125%, 10/21/20 KOR USD 392,134 0.28400,000 JPMorgan Chase & Co., senior bond, 3.20%, 06/15/26 USA USD 391,398 0.28400,000 Amcor Finance USA Inc., senior note, 144A, 3.625%, 04/28/26 AUS USD 388,788 0.28400,000 The Procter & Gamble Co., senior note, 2.45%, 11/03/26 USA USD 383,199 0.27400,000 Tiffany & Co., senior bond, 4.90%, 10/01/44 USA USD 373,678 0.27300,000 Reynolds American Inc., senior bond, 5.70%, 08/15/35 USA USD 345,001 0.25300,000 Time Warner Inc., 6.10%, 07/15/40 USA USD 343,027 0.24300,000 Unione di Banche Italiane SpA, senior note, Reg S, 2.875%, 02/18/19 ITA EUR 332,013 0.24273,000 Verizon Communications Inc., senior bond, 6.40%, 09/15/33 USA USD 329,828 0.23300,000 United Technologies Corp., senior note, 1.125%, 12/15/21 USA EUR 327,314 0.23300,000 Biogen Inc., senior bond, 5.20%, 09/15/45 USA USD 322,762 0.23300,000 Sinopec Group Overseas Development 2014 Ltd., senior note, 144A, 4.375%,

04/10/24 CHN USD 312,952 0.22300,000 Transurban Finance Co. Pty. Ltd., senior secured bond, 144A, 4.125%, 02/02/26 AUS USD 305,517 0.22300,000 Fiserv Inc., senior bond, 3.85%, 06/01/25 USA USD 305,254 0.22300,000 Juniper Networks Inc., senior bond, 4.35%, 06/15/25 USA USD 302,651 0.22300,000 Sunoco Logistics Partners Operations LP, senior note, 4.25%, 04/01/24 USA USD 302,440 0.22300,000 Baxalta Inc., senior note, 3.60%, 06/23/22 USA USD 302,348 0.21300,000 The Goldman Sachs Group Inc., senior note, 3.75%, 05/22/25 USA USD 300,921 0.21300,000 Gilead Sciences Inc., senior bond, 4.50%, 02/01/45 USA USD 299,871 0.21300,000 State Grid Overseas Investment 2013 Ltd., senior note, 144A, 3.125%, 05/22/23 CHN USD 298,110 0.21300,000 Wells Fargo & Co., senior note, 2.50%, 03/04/21 USA USD 297,702 0.21300,000 JPMorgan Chase & Co., senior note, 2.40%, 06/07/21 USA USD 297,165 0.21300,000 Oceaneering International Inc., senior note, 4.65%, 11/15/24 USA USD 296,036 0.21300,000 Wells Fargo & Co., sub. bond, 4.65%, 11/04/44 USA USD 295,387 0.21300,000 Verizon Communications Inc., senior bond, 4.522%, 09/15/48 USA USD 288,269 0.20300,000 Bunge Ltd. Finance Corp., senior note, 3.25%, 08/15/26 USA USD 288,241 0.20200,000 Veolia Environnement SA, senior bond, Reg S, 4.625%, 03/30/27 FRA EUR 282,245 0.20250,000 HCA Inc., senior bond, 5.875%, 05/01/23 USA USD 266,250 0.19250,000 Woori Bank, sub. note, 144A, 4.75%, 04/30/24 KOR USD 252,864 0.18200,000 Barclays Bank PLC, senior sub. note, Reg S, 6.00%, 01/14/21 GBR EUR 244,337 0.17250,000 Enterprise Products Operating LLC, senior bond, 4.45%, 02/15/43 USA USD 237,403 0.17200,000 Banca Monte dei Paschi di Siena SpA, secured note, Reg S, 2.875%, 04/16/21 ITA EUR 225,771 0.16200,000 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, senior note, 144A, 7.00%, 07/15/24 USA USD 212,875 0.15200,000 Prudential Financial Inc., junior sub. bond, 5.875%, 09/15/42 USA USD 210,000 0.15200,000 Telefonica Emisiones S.A.U., senior note, 4.57%, 04/27/23 ESP USD 209,571 0.15200,000 Wind Acquisition Finance SA, senior note, second lien, 144A, 7.375%, 04/23/21 ITA USD 208,120 0.15200,000 Juniper Networks Inc., senior bond, 4.50%, 03/15/24 USA USD 207,267 0.15200,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, 5.375%,

05/01/25 USA USD 206,500 0.15200,000 Delphi Corp., senior bond, 4.15%, 03/15/24 GBR USD 206,229 0.15200,000 Fiat Chrysler Automobiles NV, senior note, 4.50%, 04/15/20 USA USD 205,000 0.15200,000 Sydney Airport Finance Co. Pty. Ltd., 144A, 3.90%, 03/22/23 AUS USD 204,520 0.15200,000 Altice U.S. Finance I Corp., senior secured bond, 144A, 5.50%, 05/15/26 USA USD 204,500 0.15200,000 American Tower Corp., senior bond, 4.40%, 02/15/26 USA USD 204,471 0.15200,000 NBCUniversal Media LLC, senior bond, 4.45%, 01/15/43 USA USD 204,455 0.15200,000 Georgia Power Co., senior bond, 4.30%, 03/15/42 USA USD 204,241 0.15200,000 Bank of America Corp., senior bond, 3.875%, 08/01/25 USA USD 203,466 0.14200,000 Cemex SAB de CV, first lien, 144A, 5.70%, 01/11/25 MEX USD 202,917 0.14200,000 Intesa Sanpaolo SpA, senior note, 3.875%, 01/16/18 ITA USD 202,797 0.14200,000 Petrofac Ltd., senior note, 144A, 3.40%, 10/10/18 GBR USD 202,473 0.14200,000 Sprint Communications Inc., senior note, 6.00%, 11/15/22 USA USD 202,000 0.14200,000 Hughes Satellite Systems Corp., senior bond, 144A, 6.625%, 08/01/26 USA USD 201,500 0.14200,000 Reliance Steel & Aluminum Co., senior note, 4.50%, 04/15/23 USA USD 201,288 0.14200,000 Valero Energy Corp., senior bond, 4.90%, 03/15/45 USA USD 199,690 0.14200,000 Shinhan Bank, senior note, 144A, 1.875%, 07/30/18 KOR USD 199,403 0.14200,000 21st Century Fox America Inc., senior note, 3.00%, 09/15/22 USA USD 199,097 0.14200,000 Woodside Finance Ltd., senior note, 144A, 3.70%, 09/15/26 AUS USD 195,686 0.14200,000 SVB Financial Group, senior note, 3.50%, 01/29/25 USA USD 192,797 0.14200,000 Republic Services Inc., senior note, 2.90%, 07/01/26 USA USD 191,836 0.14200,000 PulteGroup Inc., senior bond, 5.00%, 01/15/27 USA USD 190,750 0.14






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Corporate Bonds (continued)200,000 EnLink Midstream Partners LP, senior bond, 5.05%, 04/01/45 USA USD 181,637 0.13150,000 Aviation Capital Group Corp., 144A, 6.75%, 04/06/21 USA USD 173,438 0.12150,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 4.25%,

07/01/20 NLD USD 154,129 0.11200,000 Valeant Pharmaceuticals International Inc., senior bond, 144A, 6.125%, 04/15/25 USA USD 151,000 0.11100,000 Citigroup Inc., senior bond, 8.125%, 07/15/39 USA USD 148,826 0.11150,000 MPLX LP, 4.00%, 02/15/25 USA USD 145,868 0.10125,000 TIAA Asset Management Finance LLC, senior note, 144A, 2.95%, 11/01/19 USA USD 127,182 0.09100,000 Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note, 144A,

11.50%, 01/15/21 USA USD 114,750 0.08100,000 Energy Transfer Equity LP, senior note, first lien, 7.50%, 10/15/20 USA USD 112,000 0.08100,000 Western Digital Corp., senior secured note, 144A, 7.375%, 04/01/23 USA USD 110,250 0.08100,000 ArcelorMittal, senior note, 6.50%, 03/01/21 FRA USD 109,285 0.08100,000 Cheniere Corpus Christi Holdings LLC, senior secured note, 144A, 7.00%, 06/30/24 USA USD 108,750 0.08100,000 Telefonica Europe BV, junior sub. bond, 4.20% to 12/04/19, FRN thereafter,

Perpetual ESP EUR 107,519 0.08100,000 Glencore Finance Canada Ltd., senior bond, 144A, 4.95%, 11/15/21 CHE USD 107,116 0.08100,000 DP World Ltd., Reg S, 6.85%, 07/02/37 ARE USD 107,075 0.08100,000 Cortes NP Acquisition Corp., senior note, 144A, 9.25%, 10/15/24 USA USD 106,500 0.08200,000 Energy XXI Gulf Coast Inc., senior secured note, second lien, 144A, 11.00%,

03/15/20 * USA USD 106,000 0.08100,000 Navient Corp., senior note, 6.625%, 07/26/21 USA USD 106,000 0.08100,000 Enogex LLC, senior note, 144A, 6.25%, 03/15/20 USA USD 105,950 0.08100,000 MPH Acquisition Holdings LLC, senior note, 144A, 7.125%, 06/01/24 USA USD 105,510 0.07100,000 CIT Group Inc., senior note, 5.00%, 08/15/22 USA USD 104,500 0.07100,000 Navient Corp., senior note, 7.25%, 09/25/23 USA USD 103,000 0.07100,000 MetLife Inc., senior note, 3.60%, 04/10/24 USA USD 102,631 0.07100,000 KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, senior note,

144A, 5.00%, 06/01/24 USA USD 102,375 0.07100,000 Weatherford International Ltd., senior note, 8.25%, 06/15/23 USA USD 102,000 0.07100,000 21st Century Fox America Inc., senior note, 3.70%, 10/15/25 USA USD 101,265 0.07100,000 Sabine Pass Liquefaction LLC, senior secured bond, 144A, 5.00%, 03/15/27 USA USD 101,250 0.07100,000 Stryker Corp., senior bond, 3.50%, 03/15/26 USA USD 100,996 0.07100,000 First Data Corp., secured note, first lien, 144A, 5.00%, 01/15/24 USA USD 100,907 0.07100,000 Nextstar Escrow Corp., senior note, 144A, 5.625%, 08/01/24 USA USD 99,500 0.07100,000 MSCI Inc., senior note, 144A, 4.75%, 08/01/26 USA USD 99,375 0.07100,000 Lamb Weston Holdings Inc., senior note, 144A, 4.875%, 11/01/26 USA USD 99,188 0.07100,000 CNH Industrial Capital LLC, senior note, 3.875%, 10/15/21 USA USD 98,625 0.07100,000 MPT Operating Partnership LP/MPT Finance Corp., senior bond, 5.25%, 08/01/26 USA USD 98,250 0.07100,000 Sanchez Energy Corp., senior note, 6.125%, 01/15/23 USA USD 95,500 0.07100,000 Dynegy Inc., senior note, 144A, 8.00%, 01/15/25 USA USD 93,750 0.07100,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%,

12/15/22 USA USD 89,500 0.06100,000 Weatherford International Ltd., senior bond, 5.95%, 04/15/42 USA USD 76,000 0.05100,000 Ensco PLC, senior bond, 5.75%, 10/01/44 USA USD 73,000 0.05

50,000 The Royal Bank of Scotland PLC, sub. note, 6.934%, 04/09/18 GBR EUR 56,528 0.0450,000 Royal Bank of Scotland Group PLC, sub. note, 6.125%, 12/15/22 GBR USD 53,176 0.0450,000 Enable Midstream Partners LP, senior note, 3.90%, 05/15/24 USA USD 47,448 0.0350,000 Enable Midstream Partners LP, senior bond, 5.00%, 05/15/44 USA USD 43,038 0.03

200,000 Edcon Ltd., senior secured note, first lien, 9.50%, 03/01/18 *,^ ZAF EUR 32,618 0.02

50,749,186 36.09

Government and Municipal BondsUS - Issued

3,600,000 U.S. Treasury Note, 1.375%, 12/31/18 USA USD 3,611,419 2.573,501,770 U.S. Treasury Note, Index Linked, 0.125%, 07/15/24 USA USD 3,442,586 2.453,100,000 U.S. Treasury Note, 3.625%, 02/15/21 USA USD 3,325,590 2.362,800,000 U.S. Treasury Note, 2.125%, 12/31/21 USA USD 2,821,540 2.011,500,000 U.S. Treasury Note, 2.125%, 06/30/21 USA USD 1,515,021 1.081,700,000 U.S. Treasury Bond, 2.50%, 02/15/46 USA USD 1,507,336 1.071,500,000 U.S. Treasury Note, 2.00%, 02/15/22 USA USD 1,501,003 1.071,500,000 U.S. Treasury Note, 1.125%, 01/15/19 USA USD 1,496,981 1.061,400,000 U.S. Treasury Note, 3.125%, 05/15/21 USA USD 1,474,262 1.051,310,427 U.S. Treasury Bond, Index Linked, 0.625%, 01/15/24 USA USD 1,334,375 0.951,010,000 U.S. Treasury Bond, 4.75%, 02/15/37 USA USD 1,312,633 0.931,000,000 U.S. Treasury Note, 2.125%, 12/31/22 USA USD 998,475 0.71

750,000 U.S. Treasury Bond, 4.75%, 02/15/41 USA USD 976,254 0.69700,000 U.S. Treasury Bond, 3.875%, 08/15/40 USA USD 802,460 0.57609,093 U.S. Treasury Bond, Index Linked, 2.375%, 01/15/25 USA USD 699,749 0.50650,000 U.S. Treasury Bond, 3.00%, 11/15/44 USA USD 640,822 0.46600,000 U.S. Treasury Note, 2.00%, 08/31/21 USA USD 601,879 0.43600,000 U.S. Treasury Bond, 2.875%, 05/15/43 USA USD 578,458 0.41500,000 Port Authority of New York and New Jersey Revenue, Consolidated, Refunding, One

Hundred Ninety-Second Series, 4.81%, 10/15/65 USA USD 538,610 0.38500,000 U.S. Treasury Note, 2.25%, 11/15/24 USA USD 496,360 0.35400,000 U.S. Treasury Bond, 4.375%, 05/15/40 USA USD 493,446 0.35400,000 U.S. Treasury Bond, 2.875%, 08/15/45 USA USD 384,115 0.27350,000 University of California Revenue, Limited Project, Refunding, Series J, 4.131%,

05/15/45 USA USD 347,585 0.25255,000 Texas State GO, Transportation Commission-Highway Improvement, Series A, 5.00%,

04/01/26 USA USD 309,636 0.22






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Government and Municipal Bonds (continued)US - Issued (continued)

300,000 Industry Public Facilities Authority Tax Allocation Revenue, Transportation District,Industrial Redevelopment Project No. 2, Refunding, Series B, AGMC Insured,4.294%, 01/01/23 USA USD 308,763 0.22

265,000 Providence St. Joseph Health Obligated Group, 2.746%, 10/01/26 USA USD 251,179 0.18200,000 Minnesota State GO, Various Purpose, Refunding, Series F, 4.00%, 10/01/24 USA USD 222,296 0.16300,000 Puerto Rico Electric Power Authority Power Revenue, Series A, 6.75%, 07/01/36 USA USD 198,375 0.14175,000 Port Authority of New York and New Jersey Revenue, Consolidated, One Hundred

Ninety-First Series, 4.823%, 06/01/45 USA USD 184,287 0.13165,000 U.S. Treasury Note, 2.00%, 11/30/22 USA USD 163,729 0.12112,580 U.S. Treasury Note, Index Linked, 2.125%, 01/15/19 USA USD 118,988 0.08100,000 U.S. Treasury Bond, 3.625%, 08/15/43 USA USD 110,690 0.08100,000 U.S. Treasury Bond, 2.50%, 02/15/45 USA USD 88,890 0.06

85,000 New Jersey EDA Revenue, School Facilities Construction, Refunding, Series NN,5.00%, 03/01/30 USA USD 85,666 0.06

60,000 California State GO, Refunding, 5.00%, 09/01/29 USA USD 71,434 0.0555,000 California State GO, Various Purpose, 6.00%, 11/01/39 USA USD 61,311 0.0450,000 Clark County School District GO, Refunding, Series D, 5.00%, 06/15/23 USA USD 58,336 0.0430,000 Minnesota State GO, Refunding, Series D, 5.00%, 08/01/25 USA USD 36,477 0.0330,000 University of Texas Revenue, Series J, 5.00%, 08/15/25 USA USD 36,242 0.0330,000 New York State Dormitory Authority State Personal Income Tax Revenue, General

Purpose, Refunding, Series A, 5.00%, 02/15/25 USA USD 35,113 0.035,000 Denver City and County Airport System Revenue, Refunding, Series A, 5.00%,

11/15/25 USA USD 5,918 0.00

TOTAL US - ISSUED 33,248,289 23.64

Non US - Issued150,000 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 744,973 0.53700,000 The Export-Import Bank of Korea, senior note, 2.25%, 01/21/20 KOR USD 694,718 0.49

2,000,000 Government of Malaysia, 3.80%, 08/17/23 MYS MYR 438,511 0.314,200,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 320,319 0.23

175,000 Government of Spain, senior bond, 144A, 2.75%, 10/31/24 ESP EUR 207,092 0.15200,000 Government of Serbia, senior note, 144A, 4.875%, 02/25/20 SRB USD 203,663 0.15175,000 Italy Treasury Bond, 2.50%, 12/01/24 ITA EUR 198,341 0.14700,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 155,988 0.11

160 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/18 BRA BRL 145,509 0.10100,000 Government of Lithuania, Reg S, 7.375%, 02/11/20 LTU USD 114,167 0.08100,000 Government of Vietnam, Reg S, 6.75%, 01/29/20 VNM USD 108,750 0.08

60,000 Government of Hungary, 6.00%, 01/11/19 HUN EUR 70,866 0.0540,344 Peru Enhanced Pass-Through Finance Ltd., senior secured bond, A-1, Reg S, zero

cpn., 05/31/18 PER USD 39,145 0.0310,000 Government of Hungary, senior note, Reg S, 5.75%, 06/11/18 HUN EUR 11,423 0.01

5,000 Government of Hungary, senior bond, Reg S, 3.875%, 02/24/20 HUN EUR 5,879 0.00

TOTAL NON US - ISSUED 3,459,344 2.46

36,707,633 26.10

Securities Maturing Within One Year800,000 Constellation Brands Inc., senior note, 7.25%, 05/15/17 USA USD 817,000 0.58600,000 Intesa Sanpaolo SpA, senior note, 2.375%, 01/13/17 ITA USD 600,078 0.43500,000 Canadian Natural Resources Ltd., senior note, 5.70%, 05/15/17 CAN USD 507,477 0.36500,000 International Lease Finance Corp., senior note, 8.75%, 03/15/17 USA USD 507,127 0.36

2,170,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 486,663 0.3595,000 Government of Mexico, 7.75%, 12/14/17 MEX MXN 464,206 0.33

250,000 Banco Comercial Portugues SA, 4.75%, 06/22/17 PRT EUR 268,515 0.19200,000 Hutchison Whampoa International 11 Ltd., senior note, 144A, 3.50%, 01/13/17 HKG USD 200,079 0.14

610 Nota Do Tesouro Nacional, senior note, 10.00%, 01/01/17 BRA BRL 187,386 0.13111,000 ERP Operating LP, 5.75%, 06/15/17 USA USD 113,185 0.08

15,000 Government of Hungary, senior note, Reg S, 4.375%, 07/04/17 HUN EUR 16,188 0.01270 FHLMC, 6.00%, 08/01/17 USA USD 273 0.00

4,168,177 2.96

TOTAL BONDS 148,269,042 105.43



6,544 Halcon Resources Corp. ** USA USD 54,840 0.04


WARRANTSPaper & Forest Products

14 Verso Corp., wts., 07/25/23 USA USD 0 0.00







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2,200 Motors Liquidation Co., Escrow Account, 6.25%, cvt. pfd., C ** USA USD 0 0.0050,000 NewPage Corp., Escrow Account ** USA USD 0 0.00

0 0.00

TOTAL BONDS 0 0.00



† Floating Rates are indicated as at December 31, 2016* These Bonds are currently in default^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.** These securities are submitted to a Fair Valuation






Number ofshares or


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% ofnet

assets


62,869 db x-trackers MSCI Russia Capped Index ETF, Class 1C RUS USD 1,579,584 0.5037,138 Lyxor UCITS ETF South Africa (FTSE JSE Top 40), Class C-EUR ZAF GBP 1,269,977 0.40

291,720 db x-trackers MSCI Mexico Index UCITS ETF, Class 1C MEX USD 1,220,994 0.3831,648 Lyxor UCITS ETF Eastern Europe (CECE NTR EUR), Class C-EUR FRA EUR 574,592 0.18

4,645,147 1.46



50,000 Avon Rubber PLC GBR GBP 641,178 0.204,258 MacDonald Dettwiler and Associates Ltd. CAN CAD 212,107 0.07

853,285 0.27

Air Freight & Logistics64,890 Cia de Distribucion Integral Logista Holdings SA ESP EUR 1,502,100 0.4759,584 bpost SA BEL EUR 1,410,621 0.4467,000 Agility Public Warehousing Co. KSC KWT KWD 135,916 0.05

4,600 Gulf Warehousing Co. QAT QAR 70,742 0.02

3,119,379 0.98

Auto Components136,734 SAF-Holland SA DEU EUR 1,961,688 0.62

19,186 Denso Corp. JPN JPY 830,991 0.2654,309 Sumitomo Electric Industries Ltd. JPN JPY 783,542 0.2519,097 Bridgestone Corp. JPN JPY 688,436 0.2286,000 Hota Industrial Manufacturing Co. Ltd. TWN TWD 331,233 0.1023,630 Bharat Forge Ltd. IND INR 315,237 0.10

1,224 Mando Corp. KOR KRW 237,753 0.07587 Hyundai Mobis Co. Ltd. KOR KRW 128,364 0.04

5,277,244 1.66

Automobiles144,537 Tata Motors Ltd. IND INR 1,003,928 0.31

29,399 Honda Motor Co. Ltd. JPN JPY 858,870 0.27

1,862,798 0.58

Banks199,750 Bank of America Corp. USA USD 4,414,475 1.38

39,000 JPMorgan Chase & Co. USA USD 3,365,310 1.05231,206 Mitsubishi UFJ Financial Group Inc. JPN JPY 1,424,480 0.45

16,350 The Toronto-Dominion Bank CAN CAD 806,298 0.2511,650 Royal Bank of Canada CAN CAD 788,379 0.25

153,200 Kasikornbank PCL, fgn. THA THB 758,522 0.2463,109 DBS Group Holdings Ltd. SGP SGD 755,791 0.2437,852 HDFC Bank Ltd. IND INR 737,243 0.23

8,600 Canadian Imperial Bank of Commerce CAN CAD 701,680 0.2282,000 HSBC Holdings PLC GBR GBP 663,546 0.2137,153 Yes Bank Ltd. IND INR 632,269 0.20

408,200 Bank Central Asia Tbk PT IDN IDR 469,631 0.1599,660 Security Bank Corp. PHL PHP 381,766 0.12

6,842 KB Financial Group Inc. KOR KRW 242,565 0.0716,982 Itau Unibanco Holding SA, pfd. BRA BRL 176,619 0.0554,947 National Bank of Kuwait SAKP KWT KWD 116,859 0.0413,000 Banco Bradesco SA, pfd. BRA BRL 115,832 0.04

9,525 HSBC Bank PLC (CRTP Banque Saudi Fransi) SAU USD 66,262 0.02171 Commonwealth Bank of Australia AUS AUD 10,169 0.00

16,627,696 5.21


Biotechnology13,261 CSL Ltd. AUS AUD 960,837 0.30

Building Products8,595 Daikin Industries Ltd. JPN JPY 789,318 0.25

Capital Markets200,570 The Charles Schwab Corp. USA USD 7,916,498 2.48

11,530 BlackRock Inc. USA USD 4,387,626 1.3831,020 Moody’s Corp. USA USD 2,924,255 0.9269,340 Banca Generali SpA ITA EUR 1,653,263 0.5226,750 Brookfield Asset Management Inc., A CAN CAD 882,503 0.2842,000 Close Brothers Group PLC GBR GBP 747,610 0.2386,000 Intermediate Capital Group PLC GBR GBP 741,574 0.2329,000 Rathbone Brothers PLC GBR GBP 708,400 0.2279,137 Motilal Oswal Financial Services Ltd. IND INR 606,327 0.1982,700 Singapore Exchange Ltd. SGP SGD 408,959 0.13

775,000 Amanat Holdings PJSC ARE AED 206,996 0.0795,500 Egyptian Financial Group-Hermes Holding Co. EGY EGP 133,373 0.0420,600 BM&F BOVESPA SA BRA BRL 104,434 0.03


— Franklin World Perspectives Fund —




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Marketvalue

% ofnet

assets

Capital Markets (continued)7,400 CETIP SA-Mercados Organizados BRA BRL 101,404 0.03

21,523,222 6.75

Chemicals185,000 Scapa Group PLC GBR GBP 763,439 0.24

91,228 Toray Industries Inc. JPN JPY 738,440 0.23145,719 Sumitomo Chemical Co. Ltd. JPN JPY 693,099 0.22

2,206 Lotte Chemical Corp. KOR KRW 674,268 0.2118,528 Hitachi Chemical Co. Ltd. JPN JPY 463,299 0.15

1,900 Agrium Inc. CAN CAD 190,962 0.06

3,523,507 1.11

Commercial Services & Supplies136,999 Clipper Logistics PLC GBR GBP 641,296 0.20135,000 Restore PLC GBR GBP 627,782 0.20

7,884 Sohgo Security Services Co. Ltd. JPN JPY 303,166 0.10909 Brambles Ltd. AUS AUD 8,134 0.00

1,580,378 0.50

Communications Equipment39,580 Motorola Solutions Inc. USA USD 3,280,786 1.03

Construction & Engineering16,937 Vinci SA FRA EUR 1,153,026 0.3631,731 JGC Corp. JPN JPY 576,557 0.1857,788 Voltas Ltd. IND INR 279,141 0.0922,570 Orascom Construction Ltd. ARE USD 118,267 0.04

2,126,991 0.67

Construction Materials72,314 BRAAS Monier Building Group SA DEU EUR 1,915,535 0.6034,300 Siam Cement PCL, fgn. THA THB 474,555 0.15

2,390,090 0.75

Consumer Finance154,790 Synchrony Financial USA USD 5,614,233 1.76102,650 Mahindra & Mahindra Financial Services Ltd. IND INR 408,231 0.13

6,022,464 1.89

Containers & Packaging57,934 Amcor Ltd. AUS AUD 624,987 0.20

Diversified Financial Services198,752 Cerved Information Solutions SpA ITA EUR 1,650,011 0.52

4,900 Onex Corp. CAN CAD 333,454 0.10

1,983,465 0.62

Electric Utilities16,300 Energisa SA BRA BRL 93,051 0.03

Electrical Equipment32,925 Schneider Electric SE FRA EUR 2,290,294 0.7271,531 Prysmian SpA ITA EUR 1,836,464 0.5867,576 Mitsubishi Electric Corp. JPN JPY 942,000 0.29

8,944 Nidec Corp. JPN JPY 771,635 0.2456,948 Havell’s India Ltd. IND INR 286,816 0.09

6,127,209 1.92

Electronic Equipment, Instruments & Components5,289 Murata Manufacturing Co. Ltd. JPN JPY 708,096 0.22

50,000 Gooch & Housego PLC GBR GBP 614,539 0.1910,460 HORIBA Ltd. JPN JPY 484,097 0.15

1,080,000 AU Optronics Corp. TWN TWD 392,673 0.13181,239 Laird PLC GBR GBP 341,587 0.11

2,540,992 0.80

Energy Equipment & Services79,430 Schlumberger Ltd. USA USD 6,668,149 2.0921,264 Schoeller-Bleckmann Oilfield Equipment AG AUT EUR 1,712,281 0.5476,855 TGS Nopec Geophysical Co. ASA NOR NOK 1,705,418 0.5340,396 Tecnicas Reunidas SA ESP EUR 1,656,194 0.5238,750 Canadian Energy Services & Technology Corp., A CAN CAD 221,049 0.07

11,963,091 3.75

Equity Real Estate Investment Trusts (REIT’s)16,600 Equinix Inc. USA USD 5,933,006 1.86

143,350 Merlin Properties Socimi SA ESP EUR 1,558,103 0.49

7,491,109 2.35

Food & Staples Retailing47,500 CVS Health Corp. USA USD 3,748,225 1.18

4,678 Tsuruha Holdings Inc. JPN JPY 444,209 0.14244,000 CP ALL PCL, fgn. THA THB 425,383 0.13

8,650 Alimentation Couche-Tard Inc., B CAN CAD 392,175 0.1210,725 Metro Inc., A CAN CAD 320,760 0.10

847,700 7-Eleven Malaysia Holdings Bhd. MYS MYR 268,331 0.08






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assets

Food & Staples Retailing (continued)4,700 Companhia Brasileira de Distribuicao, pfd., A BRA BRL 79,063 0.032,690 HSBC Bank PLC (CRTP Abdullah Al Othaim Markets Co., 144A) SAU USD 70,623 0.02

271 Woolworths Ltd. AUS AUD 4,713 0.00

5,753,482 1.80

Food Products190,039 Inner Mongolia Yili Industrial Group Co. Ltd., A CHN CNY 481,323 0.15

14,200 Nestle (Malaysia) Bhd. MYS MYR 247,534 0.0863,890 Universal Robina Corp. PHL PHP 210,607 0.0614,031 Nestle Lanka PLC LKA LKR 187,330 0.06

1,126,794 0.35

Gas Utilities62,013 Italgas SpA ITA EUR 243,905 0.08

Health Care Equipment & Supplies68,250 Medtronic PLC USA USD 4,861,447 1.5248,000 Smith & Nephew PLC GBR GBP 721,963 0.2311,275 Asahi Intecc Co. Ltd. JPN JPY 456,710 0.14

6,040,120 1.89

Health Care Providers & Services46,620 Aetna Inc. USA USD 5,781,346 1.81

256,100 Bangkok Dusit Medical Services PCL, fgn. THA THB 165,018 0.057,257 NMC Health PLC ARE GBP 138,027 0.059,600 Fleury SA BRA BRL 105,153 0.03

6,189,544 1.94

Hotels, Restaurants & Leisure41,500 Compass Group PLC GBR GBP 767,338 0.2410,225 Restaurant Brands International Inc. CAN CAD 486,959 0.15

199,600 MK Restaurants Group PCL, fgn. THA THB 325,707 0.10204,366 Indian Hotels Co. Ltd. IND INR 296,379 0.09140,400 Minor International PCL, fgn. THA THB 140,008 0.05

7,250 HSBC Bank PLC (CRTP Al Tayyar Travel Group Holding Co.) SAU USD 70,919 0.02

2,087,310 0.65

Household Durables11,528 SEB SA FRA EUR 1,561,707 0.4929,145 Sony Corp. JPN JPY 816,544 0.2668,000 Bovis Homes Group PLC GBR GBP 686,879 0.2173,000 Techtronic Industries Co. Ltd. HKG HKD 261,706 0.08

3,326,836 1.04


Independent Power and Renewable Electricity Producers24,000 Cia Energetica de Sao Paulo, pfd., B BRA BRL 99,475 0.03

Insurance125,860 The Hartford Financial Services Group Inc. USA USD 5,997,229 1.88

44,000 Willis Towers Watson PLC USA USD 5,380,320 1.6983,950 Athene Holding Ltd., A BMU USD 4,028,760 1.2622,010 Euler Hermes Group FRA EUR 1,933,770 0.61

220,600 AIA Group Ltd. HKG HKD 1,244,600 0.39170,500 Ping An Insurance (Group) Co. of China Ltd. CHN HKD 853,105 0.27

47,679 The Dai-Ichi Life Holdings Inc. JPN JPY 793,732 0.2535,000 Prudential PLC GBR GBP 701,693 0.2212,250 Power Corp. of Canada CAN CAD 274,138 0.08

21,207,347 6.65

Internet & Direct Marketing Retail77,340 Takkt AG DEU EUR 1,750,422 0.5530,692 Ctrip.com International Ltd., ADR CHN USD 1,227,680 0.38

2,978,102 0.93

Internet Software & Services11,150 Alphabet Inc., C USA USD 8,605,793 2.7043,610 Facebook Inc., A USA USD 5,017,330 1.5783,000 Tencent Holdings Ltd. CHN HKD 2,030,447 0.6416,143 Alibaba Group Holding Ltd., ADR CHN USD 1,417,517 0.45

692 Naver Corp. KOR KRW 444,231 0.141,246 Baidu Inc., ADR CHN USD 204,855 0.06

17,720,173 5.56

IT Services56,000 Mastercard Inc., A USA USD 5,782,000 1.81

160,900 Sabre Corp. USA USD 4,014,455 1.2691,970 Blackhawk Network Holdings Inc. USA USD 3,464,970 1.0947,283 Tieto OYJ FIN EUR 1,289,550 0.4111,238 SCSK Corp. JPN JPY 393,203 0.12

14,944,178 4.69






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Life Sciences Tools & Services70,000 Clinigen Group PLC GBR GBP 612,229 0.19

Machinery100,000 Bodycote PLC GBR GBP 793,311 0.25

27,912 Cummins India Ltd. IND INR 336,298 0.10

1,129,609 0.35

Media235,550 Twenty-First Century Fox Inc., B USA USD 6,418,737 2.01

18,452 Charter Communications Inc., A USA USD 5,312,700 1.67143,752 Mediaset Espana Comunicacion SA ESP EUR 1,686,503 0.53

3,061,895 Surya Citra Media Tbk PT IDN IDR 636,356 0.2077,100 IMAX China Holding Inc. HKG HKD 377,819 0.12

318,200 Major Cineplex Group PCL, fgn. THA THB 290,685 0.09

14,722,800 4.62

Metals & Mining10,583 Mitsubishi Materials Corp. JPN JPY 325,018 0.10

1,189 POSCO KOR KRW 253,606 0.084,310 Rio Tinto Ltd. GBR AUD 186,295 0.06

10,059 BHP Billiton Ltd. AUS AUD 181,900 0.06

946,819 0.30

Multiline Retail238,300 Matahari Department Store Tbk PT IDN IDR 267,529 0.08

2,900 Dollarama Inc. CAN CAD 212,468 0.0765,560 Trent Ltd. IND INR 193,339 0.06

673,336 0.21

Multi-Utilities62,000 National Grid PLC GBR GBP 726,782 0.23

Oil, Gas & Consumable Fuels117,360 Anadarko Petroleum Corp. USA USD 8,183,513 2.57

22,080 Pioneer Natural Resources Co. USA USD 3,975,946 1.25310,068 Snam SpA ITA EUR 1,276,956 0.40127,000 BP PLC GBR GBP 797,243 0.25164,022 JX Holdings Inc. JPN JPY 694,142 0.22

14,650 Enbridge Inc. CAN CAD 616,417 0.19110,000 Formosa Petrochemical Corp. TWN TWD 379,608 0.12

12,600 Peyto Exploration & Development Corp. CAN CAD 311,622 0.109,125 Keyera Corp. CAN CAD 274,946 0.089,725 Tourmaline Oil Corp. CAN CAD 260,072 0.086,675 Canadian Natural Resources Ltd. CAN CAD 212,707 0.07

16,500 Petroleo Brasileiro SA, pfd. BRA BRL 75,385 0.02

17,058,557 5.35

Pharmaceuticals48,470 Allergan PLC USA USD 10,179,185 3.19

184,640 Horizon Pharma PLC USA USD 2,987,475 0.9439,124 Novartis AG CHE CHF 2,846,709 0.8912,283 Roche Holding AG CHE CHF 2,805,406 0.8826,511 Sanofi FRA EUR 2,145,116 0.6720,784 Otsuka Holdings Co. Ltd. JPN JPY 905,538 0.2913,500 AstraZeneca PLC GBR GBP 737,955 0.2378,870 Sun Pharmaceutical Industries Ltd. IND INR 731,196 0.2313,200 Hypermarcas SA BRA BRL 105,975 0.03

23,444,555 7.35

Professional Services108,923 IHS Markit Ltd. USA USD 3,856,964 1.21183,712 Applus Services SA ESP EUR 1,865,362 0.59

93,414 Relx NV GBR EUR 1,571,660 0.4940,000 Relx PLC GBR GBP 713,980 0.2227,199 Temp Holdings Co. Ltd. JPN JPY 421,847 0.13

8,429,813 2.64

Real Estate Management & Development200,870 CBRE Group Inc. USA USD 6,325,396 1.99

91,000 Unite Group PLC GBR GBP 679,316 0.2123,819 Mitsui Fudosan Co. Ltd. JPN JPY 551,182 0.17

170,000 Urban & Civic PLC GBR GBP 472,753 0.15152,000 China Overseas Land & Investment Ltd. CHN HKD 402,811 0.13104,000 China Resources Land Ltd. CHN HKD 233,898 0.07147,400 Six of October Development & Investment Co. EGY EGP 120,977 0.04

8,786,333 2.76

Road & Rail87,180 Genesee & Wyoming Inc. USA USD 6,051,164 1.90

241,999 Nobina AB, Reg S SWE SEK 1,348,247 0.4210,275 Canadian National Railway Co. CAN CAD 691,427 0.22

3,200 Canadian Pacific Railway Ltd. CAN CAD 456,503 0.14

8,547,341 2.68






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Semiconductors & Semiconductor Equipment87,710 QUALCOMM Inc. USA USD 5,718,692 1.7915,957 ASML Holding NV NLD EUR 1,790,649 0.56

139,795 Taiwan Semiconductor Manufacturing Co. Ltd. TWN TWD 781,796 0.2515,465 SK Hynix Inc. KOR KRW 572,609 0.1827,000 Silergy Corp. CHN TWD 377,698 0.1213,540 New WONIK IPS Co. Ltd. KOR KRW 293,847 0.09

1,980 Disco Corp. JPN JPY 239,846 0.08

9,775,137 3.07

Software168,340 Microsoft Corp. USA USD 10,460,648 3.28

31,080 Adobe Systems Inc. USA USD 3,199,686 1.00

13,660,334 4.28

Specialty Retail271,901 Byggmax Group AB SWE SEK 1,880,491 0.59165,000 Dixons Carphone PLC GBR GBP 720,743 0.23338,000 L’Occitane International SA LUX HKD 638,994 0.20295,000 Topps Tiles PLC GBR GBP 317,971 0.10

7,020 HSBC Bank PLC (CRTP Fawaz Abdulaziz Alhokair & Co., 144A) SAU USD 68,857 0.02

3,627,056 1.14

Technology Hardware, Storage & Peripherals1,004 Samsung Electronics Co. Ltd. KOR KRW 1,498,613 0.47

15,903 FUJIFILM Holdings Corp. JPN JPY 603,361 0.19192,000 Quanta Computer Inc. TWN TWD 356,733 0.11

24,113 Ennoconn Corp. TWN TWD 306,107 0.10

2,764,814 0.87

Textiles, Apparel & Luxury Goods198,900 Samsonite International SA HKG HKD 568,139 0.18

75,000 Bon Fame Co. Ltd. TWN TWD 353,572 0.111,426 Page Industries Ltd. IND INR 286,457 0.09

137,519 Aditya Birla Fashion and Retail Ltd. IND INR 279,370 0.09

1,487,538 0.47

Tobacco75,900 Scandinavian Tobacco Group AS, Reg S DNK DKK 1,277,481 0.4017,000 Imperial Brands PLC GBR GBP 741,851 0.2312,500 British American Tobacco PLC GBR GBP 711,624 0.23

2,730,956 0.86

Trading Companies & Distributors12,500 Wolseley PLC GBR GBP 764,055 0.2424,208 MISUMI Group Inc. JPN JPY 398,445 0.12

1,162,500 0.36

Transportation Infrastructure39,200 Ecorodovias Infraestrutura e Logistica SA BRA BRL 99,244 0.03

4,000 DP World Ltd. ARE USD 70,040 0.02

169,284 0.05

Water Utilities70,000 Pennon Group PLC GBR GBP 713,118 0.2340,000 Cia de Saneamento do Parana, pfd. BRA BRL 132,117 0.04

845,235 0.27

Wireless Telecommunication Services14,827 SoftBank Group Corp. JPN JPY 984,915 0.31

TOTAL SHARES 307,137,042 96.33








Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


86,587 B/E Aerospace Inc. USA USD 5,211,672 0.6333,658 KLX Inc. USA USD 1,518,312 0.19

6,729,984 0.82

Auto Components170,579 The Goodyear Tire & Rubber Co. USA USD 5,265,774 0.64

Automobiles463,770 General Motors Co. USA USD 16,157,747 1.96

Banks234,374 PNC Financial Services Group Inc. USA USD 27,412,383 3.32508,251 Citizens Financial Group Inc. USA USD 18,108,983 2.20239,224 Citigroup Inc. USA USD 14,217,082 1.72162,850 JPMorgan Chase & Co. USA USD 14,052,327 1.70193,300 Wells Fargo & Co. USA USD 10,652,763 1.29

57,996 Guaranty Bancorp USA USD 1,403,503 0.17

85,847,041 10.40


Chemicals111,170 Monsanto Co. USA USD 11,696,196 1.42



15,034,408 1.82

Containers & Packaging303,153 International Paper Co. USA USD 16,085,298 1.95198,618 WestRock Co. USA USD 10,083,836 1.22

26,169,134 3.17

Diversified Financial Services254,810 Voya Financial Inc. USA USD 9,993,648 1.21216,501 CIT Group Inc. USA USD 9,240,263 1.12

19,233,911 2.33

Electrical Equipment304,070 Sensata Technologies Holding NV USA USD 11,843,526 1.43

Energy Equipment & Services268,370 Baker Hughes Inc. USA USD 17,435,999 2.11

Food & Staples Retailing574,360 The Kroger Co. USA USD 19,821,163 2.40231,117 CVS Health Corp. USA USD 18,237,442 2.21170,693 Walgreens Boots Alliance Inc. USA USD 14,126,553 1.71643,220 Rite Aid Corp. USA USD 5,300,133 0.64

57,485,291 6.96

Health Care Equipment & Supplies442,046 Medtronic PLC USA USD 31,486,937 3.82151,078 Stryker Corp. USA USD 18,100,655 2.19

49,587,592 6.01

Health Care Providers & Services35,223 Cigna Corp. USA USD 4,698,396 0.57

Household Products46,458 Energizer Holdings Inc. USA USD 2,072,491 0.25

Insurance387,963 American International Group Inc. USA USD 25,337,863 3.07265,120 MetLife Inc. USA USD 14,287,317 1.73

22,955 Alleghany Corp. USA USD 13,959,395 1.6914,221 White Mountains Insurance Group Ltd. USA USD 11,889,467 1.4468,648 Chubb Ltd. USA USD 9,069,774 1.1046,028 The Hartford Financial Services Group Inc. USA USD 2,193,234 0.26

76,737,050 9.29


Machinery135,379 Caterpillar Inc. USA USD 12,555,048 1.52


— Franklin Mutual Beacon Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Media242,880 Time Warner Inc. USA USD 23,445,206 2.84

66,272 Charter Communications Inc., A USA USD 19,081,034 2.31215,731 DISH Network Corp., A USA USD 12,497,297 1.51

55,023,537 6.66

Oil, Gas & Consumable Fuels718,090 Kinder Morgan Inc. USA USD 14,871,644 1.80711,207 Marathon Oil Corp. USA USD 12,310,993 1.49231,518 The Williams Cos. Inc. USA USD 7,209,471 0.87294,602 CONSOL Energy Inc. USA USD 5,370,594 0.65

41,393 Apache Corp. USA USD 2,627,214 0.32

42,389,916 5.13

Personal Products12,445 Edgewell Personal Care Co. USA USD 908,360 0.11

Pharmaceuticals459,920 Merck & Co. Inc. USA USD 27,075,490 3.28331,539 Eli Lilly & Co. USA USD 24,384,694 2.95

51,460,184 6.23

Real Estate Management & Development42,009 Forestar Group Inc. USA USD 558,720 0.07

Software398,063 Microsoft Corp. USA USD 24,735,635 3.00940,759 Symantec Corp. USA USD 22,474,733 2.72411,181 CA Inc. USA USD 13,063,220 1.58

48,586 Dell Technologies Inc., V USA USD 2,670,772 0.32

62,944,360 7.62

Technology Hardware, Storage & Peripherals376,412 Hewlett Packard Enterprise Co. USA USD 8,710,174 1.05

Tobacco165,987 Altria Group Inc. USA USD 11,224,041 1.36192,102 Reynolds American Inc. USA USD 10,765,396 1.30

46,612 Philip Morris International Inc. USA USD 4,264,532 0.52

26,253,969 3.18

TOTAL SHARES 704,752,065 85.35



10,382,000 iHeartCommunications Inc., senior secured note, first lien, 9.00%, 12/15/19 USA USD 8,526,217 1.035,225,000 Avaya Inc., senior secured note, 144A, 7.00%, 04/01/19 USA USD 4,598,000 0.563,206,000 Valeant Pharmaceuticals International, senior note, 144A, 6.375%, 10/15/20 CAN USD 2,770,176 0.345,144,000 Avaya Inc., senior note, 144A, 10.50%, 03/01/21 USA USD 2,237,640 0.272,346,000 Veritas U.S. Inc./Veritas Bermuda Ltd., senior note, 144A, 10.50%, 02/01/24 USA USD 2,149,522 0.261,206,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 844,200 0.10

839,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 7.50%, 07/15/21 USA USD 714,199 0.09805,000 CHS/Community Health Systems Inc., senior note, 7.125%, 07/15/20 USA USD 616,066 0.07509,000 Valeant Pharmaceuticals International, senior bond, 144A, 6.75%, 08/15/21 CAN USD 425,015 0.05339,000 Veritas U.S. Inc./Veritas Bermuda Ltd., senior note, 144A, 7.50%, 02/01/23 USA USD 317,813 0.04375,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.625%, 12/01/21 USA USD 292,500 0.04252,000 Valeant Pharmaceuticals International, senior bond, 144A, 7.25%, 07/15/22 CAN USD 207,270 0.02

3,625,000 Samson Investment Co., senior note, 9.75%, 02/15/20 * USA USD 194,844 0.02150,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.375%, 03/15/20 USA USD 127,500 0.02

1,106,158 Adelphia Recovery Trust, Escrow Account, Arahova USA USD 11,062 0.0013,876,106 Adelphia Recovery Trust, Escrow Account, ACC-1 USA USD 8,326 0.00

24,040,350 2.91

Government and Municipal Bonds3,856,000 Puerto Rico Commonwealth GO, Refunding, Series A, 8.00%, 07/01/35 * USA USD 2,602,800 0.31

Securities Maturing Within One Year14,000,000 FHLB, 0.00%, 01/03/17 USA USD 14,000,000 1.70

7,000,000 U.S. Treasury Bill, 0.00%, 01/19/17 USA USD 6,998,733 0.854,000,000 U.S. Treasury Bill, 0.00%, 03/02/17 USA USD 3,996,940 0.493,000,000 U.S. Treasury Bill, 0.00%, 02/23/17 USA USD 2,998,020 0.373,000,000 U.S. Treasury Bill, 0.00%, 05/25/17 USA USD 2,992,869 0.362,500,000 U.S. Treasury Bill, 0.00%, 02/09/17 USA USD 2,498,865 0.302,000,000 U.S. Treasury Bill, 0.00%, 01/05/17 USA USD 1,999,966 0.242,000,000 U.S. Treasury Bill, 0.00%, 01/26/17 USA USD 1,999,474 0.242,000,000 U.S. Treasury Bill, 0.00%, 02/16/17 USA USD 1,998,936 0.242,000,000 U.S. Treasury Bill, 0.00%, 05/18/17 USA USD 1,995,506 0.242,000,000 U.S. Treasury Bill, 0.00%, 06/01/17 USA USD 1,994,878 0.241,000,000 U.S. Treasury Bill, 0.00%, 02/02/17 USA USD 999,653 0.12






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year (continued)1,000,000 U.S. Treasury Bill, 0.00%, 03/16/17 USA USD 999,010 0.12

45,472,850 5.51

TOTAL BONDS 72,116,000 8.73


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESAuto Components

9,944,392 International Automotive Components Group North America LLC ** USA USD 7,397,633 0.90912,806 International Automotive Components Group Brazil LLC ** BRA USD 22,461 0.00

7,420,094 0.90

Consumer Finance5,757,459 CB FIM Coinvestors LLC ** USA USD 0 0.007,202,506 FIM Coinvestor Holdings I LLC ** USA USD 0 0.00

0 0.00

Oil, Gas & Consumable Fuels7,487 Warrior Met Coal LLC, B ** USA USD 2,433,275 0.293,231 Warrior Met Coal LLC, A ** USA USD 1,050,075 0.13

3,483,350 0.42

TOTAL SHARES 10,903,444 1.32


60,000 Century Communications Corp., Escrow Account, 8.375%, 12/15/07 ** USA USD 0 0.00584,000 Century Communications Corp., Escrow Account, 8.75%, 10/01/07 ** USA USD 0 0.00

72,000 Century Communications Corp., Escrow Account, 8.875%, 02/20/49 ** USA USD 0 0.00142,000 Century Communications Corp., Escrow Account, 9.50%, 03/01/05 ** USA USD 0 0.00929,000 Century Communications Corp., Escrow Account, zero cpn., 01/15/08 ** USA USD 0 0.00

1,302,000 Century Communications Corp., Escrow Account, zero cpn., 02/20/49 ** USA USD 0 0.007,988,000 Tropicana Entertainment LLC/Tropicana Finance Corp., senior sub. note, 9.625%,

12/15/14 *,** USA USD 0 0.001,263,810 Walter Energy Inc., Escrow Account ** USA USD 0 0.00

0 0.00

TOTAL BONDS 0 0.00









Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


622,373 Deutsche Post AG DEU EUR 19,439,821 1.09


2,386,441 Schaeffler AG, pfd. DEU EUR 33,541,428 1.88

77,070,697 4.32

Automobiles345,242 Volkswagen AG, pfd. DEU EUR 46,038,021 2.58

35,009 Audi AG DEU EUR 22,090,679 1.24

68,128,700 3.82

Banks3,984,738 Standard Chartered PLC GBR GBP 30,957,489 1.74

299,871 BNP Paribas SA FRA EUR 18,157,189 1.021,032,482 HSBC Holdings PLC GBR GBP 7,940,380 0.44

57,055,058 3.20

Capital Markets550,007 Oslo Bors VPS Holding ASA NOR NOK 5,445,641 0.31

Chemicals490,226 LANXESS AG DEU EUR 30,565,591 1.71


36,545,468 2.05

Commercial Services & Supplies7,351,129 G4S PLC GBR GBP 20,224,672 1.13

Communications Equipment5,118,132 Nokia OYJ, ADR FIN USD 23,396,898 1.313,441,290 Nokia OYJ, A FIN EUR 15,788,638 0.89

39,185,536 2.20

Construction Materials943,340 LafargeHolcim Ltd., B CHE CHF 47,230,365 2.65

Diversified Telecommunication Services3,109,721 Deutsche Telekom AG DEU EUR 50,859,487 2.85

15,495,560 Koninklijke KPN NV NLD EUR 43,604,506 2.452,660,735 Hellenic Telecommunications Organization SA GRC EUR 23,760,363 1.338,905,454 Telecom Italia SpA ITA EUR 7,453,865 0.42

125,678,221 7.05


Food & Staples Retailing1,667,059 Metro AG DEU EUR 52,654,059 2.96

804,650 Carrefour SA FRA EUR 18,418,438 1.03

71,072,497 3.99

Hotels, Restaurants & Leisure1,284,639 Accor SA FRA EUR 45,514,760 2.55

Industrial Conglomerates2,104,261 Koninklijke Philips NV NLD EUR 61,023,569 3.42

Insurance8,142,248 RSA Insurance Group PLC GBR GBP 55,860,075 3.131,642,933 NN Group NV NLD EUR 52,894,228 2.971,367,148 XL Group Ltd. IRL USD 48,412,789 2.72

901,788 Ageas BEL EUR 33,916,247 1.907,447,755 Direct Line Insurance Group PLC GBR GBP 32,209,342 1.811,277,782 Lancashire Holdings Ltd. GBR GBP 10,381,875 0.58

533,746 UNIQA Insurance Group AG AUT EUR 3,842,971 0.21

237,517,527 13.32

Machinery1,020,455 FLSmidth & Co. AS DNK DKK 40,224,816 2.26

448,206 Vossloh AG DEU EUR 26,717,560 1.503,200,556 CNH Industrial NV GBR EUR 26,452,595 1.48

93,394,971 5.24


Media264,197 Liberty Global PLC, C GBR USD 7,457,376 0.42


— Franklin Mutual European Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Metals & Mining600,394 Voestalpine AG AUT EUR 22,388,692 1.26676,175 ThyssenKrupp AG DEU EUR 15,308,602 0.86

37,697,294 2.12


Oil, Gas & Consumable Fuels6,916,997 BP PLC GBR GBP 41,267,350 2.321,264,459 Royal Dutch Shell PLC, A GBR EUR 32,856,967 1.84

11,033,918 Cairn Energy PLC GBR GBP 30,473,144 1.711,020,649 Royal Dutch Shell PLC, A GBR GBP 26,795,906 1.50

361,939 Repsol SA ESP EUR 4,857,222 0.27

136,250,589 7.64

Pharmaceuticals736,068 Novartis AG CHE CHF 50,900,198 2.86

1,879,630 GlaxoSmithKline PLC GBR GBP 34,372,647 1.93348,284 Sanofi FRA EUR 26,783,040 1.50

112,055,885 6.29

Professional Services322,667 Relx PLC GBR GBP 5,473,719 0.31

Specialty Retail304,485 Dufry AG CHE CHF 36,087,180 2.02

5,974,463 Kingfisher PLC GBR GBP 24,501,834 1.38120,423 Hornbach Holding AG & Co. KGaA DEU EUR 7,550,522 0.42

68,139,536 3.82

Tobacco407,760 Imperial Brands PLC GBR GBP 16,911,186 0.95

Trading Companies & Distributors2,571,208 Kloeckner & Co. SE DEU EUR 30,623,087 1.721,282,513 Rexel SA FRA EUR 20,052,091 1.12

50,675,178 2.84


TOTAL SHARES 1,602,554,939 89.90

RIGHTSOil, Gas & Consumable Fuels

361,939 Repsol SA, rts., 01/06/17 ESP EUR 127,402 0.01




110,500,000 FHLB, 0.00%, 01/03/17 USA USD 105,018,062 5.89

TOTAL BONDS 105,018,062 5.89


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESEnergy Equipment & Services

1,272,819 DeepOcean Group Holding BV ** NLD USD 3,113,701 0.17

Road & Rail16,297,820 Euro Wagon LP ** JEY EUR 0 0.00






— Franklin Mutual European Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


79,790 KLX Inc. USA USD 3,599,327 0.36



92,433 Volkswagen AG, pfd. DEU EUR 12,969,354 1.3045,404 Hyundai Motor Co. KOR KRW 5,490,956 0.55

32,254,860 3.23

Banks281,960 Citigroup Inc. USA USD 16,756,883 1.68138,210 PNC Financial Services Group Inc. USA USD 16,165,042 1.62287,780 Wells Fargo & Co. USA USD 15,859,556 1.59174,810 JPMorgan Chase & Co. USA USD 15,084,355 1.51209,770 BNP Paribas SA FRA EUR 13,364,595 1.34293,064 Citizens Financial Group Inc. USA USD 10,441,870 1.05

3,787,592 Barclays PLC GBR GBP 10,425,608 1.04177,930 Societe Generale SA FRA EUR 8,751,503 0.88617,422 Standard Chartered PLC GBR GBP 5,047,151 0.51

111,896,563 11.22


Chemicals93,180 Monsanto Co. USA USD 9,803,468 0.98


12,269,689 1.23


1,285,222 Nokia OYJ, A FIN EUR 6,204,401 0.621,203,226 Nokia OYJ, ADR FIN USD 5,787,517 0.58

22,467,681 2.25

Construction Materials136,546 LafargeHolcim Ltd., B CHE CHF 7,193,335 0.72


16,171,165 1.62

Containers & Packaging169,390 International Paper Co. USA USD 8,987,833 0.90

Diversified Financial Services253,834 CIT Group Inc. USA USD 10,833,635 1.09164,080 Voya Financial Inc. USA USD 6,435,218 0.64

17,268,853 1.73

Diversified Telecommunication Services4,210,750 Koninklijke KPN NV NLD EUR 12,467,570 1.25

23,223,931 China Telecom Corp. Ltd., H CHN HKD 10,721,732 1.07362,580 Deutsche Telekom AG DEU EUR 6,239,542 0.63

29,428,844 2.95


Energy Equipment & Services242,710 Baker Hughes Inc. USA USD 15,768,869 1.58

Food & Staples Retailing134,026 Walgreens Boots Alliance Inc. USA USD 11,091,992 1.11318,530 Metro AG DEU EUR 10,585,942 1.06131,253 CVS Health Corp. USA USD 10,357,174 1.04

32,035,108 3.21

Health Care Equipment & Supplies243,197 Medtronic PLC USA USD 17,322,922 1.74130,364 Stryker Corp. USA USD 15,618,911 1.56

32,941,833 3.30

Hotels, Restaurants & Leisure320,970 Accor SA FRA EUR 11,965,583 1.20

1,255,600 Sands China Ltd. HKG HKD 5,456,667 0.55

17,422,250 1.75

Industrial Conglomerates531,443 Koninklijke Philips NV NLD EUR 16,216,345 1.63


— Franklin Mutual Global Discovery Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Insurance517,116 NN Group NV NLD EUR 17,517,603 1.76259,367 American International Group Inc. USA USD 16,939,259 1.70447,706 XL Group Ltd. IRL USD 16,681,526 1.67

1,888,394 RSA Insurance Group PLC GBR GBP 13,631,639 1.372,930,992 China Pacific Insurance Group Co. Ltd., H CHN HKD 10,224,171 1.02

185,742 MetLife Inc. USA USD 10,009,636 1.002,010,097 Direct Line Insurance Group PLC GBR GBP 9,146,854 0.92

64,099 Chubb Ltd. USA USD 8,468,760 0.8540,765 The Hartford Financial Services Group Inc. USA USD 1,942,452 0.19

104,561,900 10.48


Machinery118,567 Caterpillar Inc. USA USD 10,995,903 1.10257,630 FLSmidth & Co. AS DNK DKK 10,685,502 1.07773,658 CNH Industrial NV GBR EUR 6,728,065 0.68

28,409,470 2.85


Media212,370 Time Warner Inc. USA USD 20,500,076 2.06

36,866 Charter Communications Inc., A USA USD 10,614,459 1.06182,330 DISH Network Corp., A USA USD 10,562,377 1.06

47,790 Liberty Global PLC, C GBR USD 1,419,363 0.14

43,096,275 4.32

Metals & Mining305,886 ThyssenKrupp AG DEU EUR 7,286,757 0.73364,598 Freeport-McMoRan Inc., B USA USD 4,809,048 0.48

12,095,805 1.21


Oil, Gas & Consumable Fuels534,980 Royal Dutch Shell PLC, A GBR EUR 14,627,111 1.47

1,549,210 BP PLC GBR GBP 9,725,178 0.98432,705 Marathon Oil Corp. USA USD 7,490,124 0.75348,320 Kinder Morgan Inc. USA USD 7,213,707 0.72245,719 Royal Dutch Shell PLC, A GBR GBP 6,787,800 0.68

44,260 Apache Corp. USA USD 2,809,182 0.28

48,653,102 4.88

Pharmaceuticals361,010 Merck & Co. Inc. USA USD 21,252,659 2.13279,724 Eli Lilly & Co. USA USD 20,573,700 2.06251,848 Novartis AG, ADR CHE USD 18,344,608 1.84280,226 Teva Pharmaceutical Industries Ltd., ADR ISR USD 10,158,193 1.02518,571 GlaxoSmithKline PLC GBR GBP 9,978,083 1.00

28,910 Novartis AG CHE CHF 2,103,526 0.21

82,410,769 8.26

Real Estate Management & Development1,208,696 Dolphin Capital Investors Ltd. GRC GBP 126,559 0.01

Software329,026 Microsoft Corp. USA USD 20,445,676 2.05669,341 Symantec Corp. USA USD 15,990,556 1.60157,550 Check Point Software Technologies Ltd. ISR USD 13,306,673 1.34

49,742,905 4.99

Specialty Retail2,239,784 Kingfisher PLC GBR GBP 9,665,050 0.97

75,504 Dufry AG CHE CHF 9,415,758 0.94

19,080,808 1.91


384,964 Hewlett Packard Enterprise Co. USA USD 8,908,067 0.89

24,773,363 2.48

Tobacco243,928 British American Tobacco PLC GBR GBP 13,886,809 1.39216,661 Reynolds American Inc. USA USD 12,141,682 1.22143,126 Altria Group Inc. USA USD 9,678,180 0.97

49,320 Philip Morris International Inc. USA USD 4,512,287 0.45

40,218,958 4.03






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


TOTAL SHARES 890,008,394 89.21



5,418,000 Avaya Inc., senior secured note, 144A, 7.00%, 04/01/19 USA USD 4,767,840 0.484,746,000 Valeant Pharmaceuticals International, senior note, 144A, 6.375%, 10/15/20 CAN USD 4,100,829 0.413,658,000 Veritas U.S. Inc./Veritas Bermuda Ltd., senior note, 144A, 10.50%, 02/01/24 USA USD 3,351,642 0.345,932,000 Avaya Inc., senior note, 144A, 10.50%, 03/01/21 USA USD 2,580,420 0.261,719,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 1,203,300 0.121,040,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 7.50%, 07/15/21 USA USD 885,300 0.091,150,000 CHS/Community Health Systems Inc., senior note, 7.125%, 07/15/20 USA USD 880,095 0.09

762,000 Valeant Pharmaceuticals International, senior bond, 144A, 6.75%, 08/15/21 CAN USD 636,270 0.06534,000 Veritas U.S. Inc./Veritas Bermuda Ltd., senior note, 144A, 7.50%, 02/01/23 USA USD 500,625 0.05465,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.625%, 12/01/21 USA USD 362,700 0.04374,000 Valeant Pharmaceuticals International, senior bond, 144A, 7.25%, 07/15/22 CAN USD 307,615 0.03186,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.375%, 03/15/20 USA USD 158,100 0.01

19,734,736 1.98

Government and Municipal Bonds7,838,000 Puerto Rico Commonwealth GO, Refunding, Series A, 8.00%, 07/01/35 * USA USD 5,290,650 0.53

Securities Maturing Within One Year13,300,000 FHLB, 0.00%, 01/03/17 USA USD 13,300,000 1.34

9,000,000 U.S. Treasury Bill, 0.00%, 01/05/17 USA USD 8,999,847 0.905,000,000 U.S. Treasury Bill, 0.00%, 01/19/17 USA USD 4,999,095 0.505,000,000 U.S. Treasury Bill, 0.00%, 05/25/17 USA USD 4,988,115 0.504,000,000 U.S. Treasury Bill, 0.00%, 05/18/17 USA USD 3,991,012 0.402,500,000 U.S. Treasury Bill, 0.00%, 02/09/17 USA USD 2,498,865 0.252,400,000 U.S. Treasury Bill, 0.00%, 06/08/17 USA USD 2,393,604 0.242,000,000 U.S. Treasury Bill, 0.00%, 03/16/17 USA USD 1,998,020 0.202,000,000 U.S. Treasury Bill, 0.00%, 04/20/17 USA USD 1,996,828 0.202,000,000 U.S. Treasury Bill, 0.00%, 06/01/17 USA USD 1,994,878 0.20

47,160,264 4.73

TOTAL BONDS 72,185,650 7.24


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESAuto Components

207,777 International Automotive Components Group North America LLC ** USA USD 154,565 0.01

Consumer Finance172,544 FIM Coinvestor Holdings I LLC ** USA USD 0 0.00

Diversified Financial Services7,190,000 Hightower Holding LLC, pfd., A, 1 ** USA USD 9,167,969 0.921,552,000 Hightower Holding LLC, pfd., A, 2 ** USA USD 4,361,586 0.44

13,529,555 1.36

Oil, Gas & Consumable Fuels10,791 Warrior Met Coal LLC, B ** USA USD 3,507,075 0.35

4,658 Warrior Met Coal LLC, A ** USA USD 1,513,850 0.15

5,020,925 0.50

TOTAL SHARES 18,705,045 1.87


10,420,000 NewPage Corp., Escrow Account ** USA USD 0 0.001,791,170 Walter Energy Inc., Escrow Account ** USA USD 0 0.00

0 0.00

TOTAL BONDS 0 0.00









Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESBanks

13,386,260 KCB Group Ltd. KEN KES 3,788,441 5.6981,241,831 Zenith Bank PLC NGA NGN 3,738,425 5.6241,197,238 Guaranty Trust Bank PLC NGA NGN 3,221,831 4.84

563,247 Commercial International Bank Egypt SAE EGY EGP 2,269,454 3.416,700,312 Equity Group Holdings Ltd. KEN KES 1,977,988 2.97

271,100 MCB Group Ltd. MUS MUR 1,619,069 2.4391,100 Standard Bank Group Ltd. ZAF ZAR 1,006,247 1.51

17,621,455 26.47

Beverages4,978,992 Delta Corp. Ltd. ZWE USD 4,406,408 6.621,422,392 East African Breweries Ltd. KEN KES 3,442,502 5.176,584,830 Nigerian Breweries PLC NGA NGN 3,090,427 4.64

401,407 Tanzania Breweries Ltd. TZA TZS 2,208,567 3.32

13,147,904 19.75

Capital Markets203,884 Brait SE ZAF ZAR 1,299,411 1.95

Diversified Financial Services909,000 FirstRand Ltd. ZAF ZAR 3,517,937 5.29109,230 Remgro Ltd. ZAF ZAR 1,773,380 2.66

5,291,317 7.95

Diversified Telecommunication Services84,619 Sonatel SEN XOF 3,363,663 5.05

Food Products2,592,009 Juhayna Food Industries EGY EGP 890,690 1.34

Health Care Providers & Services175,770 Integrated Diagnostics Holdings PLC EGY USD 593,224 0.89

Hotels, Restaurants & Leisure1,294,937 New Mauritius Hotels Ltd. MUS MUR 678,043 1.02

Industrial Conglomerates90,818 Press Corp. Ltd., GDR, Reg S MWI USD 1,348,291 2.03

11,156,659 UAC of Nigeria PLC NGA NGN 594,762 0.89

1,943,053 2.92

Media9,245 Naspers Ltd., N ZAF ZAR 1,355,325 2.04

Multiline Retail308,000 Woolworths Holdings Ltd. ZAF ZAR 1,592,168 2.39

Oil, Gas & Consumable Fuels532,866 SEPLAT Petroleum Development Co. PLC, Reg S NGA GBP 476,719 0.72

Pharmaceuticals278,962 Egyptian International Pharmaceuticals EIPICO EGY EGP 1,346,342 2.02

Specialty Retail171,409 Mr. Price Group Ltd. ZAF ZAR 1,990,618 2.99


Wireless Telecommunication Services392,778 MTN Group Ltd. ZAF ZAR 3,607,122 5.42

17,187,800 Safaricom Ltd. KEN KES 3,212,124 4.821,055,274 Global Telecom Holding SAE EGY EGP 413,262 0.62

7,232,508 10.86

TOTAL SHARES 60,705,065 91.19


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESBeverages

798,712 Sechaba Brewery Holding Ltd. BWA BWP 2,017,427 3.03

Consumer Finance7,030,994 Letshego Holdings Ltd. BWA BWP 1,506,246 2.26





— Templeton Africa Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


337,770 JWD Infologistics PCL, fgn. THA THB 73,490 1.64

Automobiles223,000 Astra International Tbk PT IDN IDR 136,970 3.05

Banks13,325 DBS Group Holdings Ltd. SGP SGD 159,580 3.5623,974 Oversea-Chinese Banking Corp. Ltd. SGP SGD 147,695 3.2910,198 United Overseas Bank Ltd. SGP SGD 143,683 3.20

162,500 Bank Rakyat Indonesia Persero Tbk PT IDN IDR 140,819 3.1456,500 BDO Unibank Inc. PHL PHP 127,696 2.8518,800 Kasikornbank PCL, fgn. THA THB 93,082 2.07

2,111,759 Bank Permata Tbk PT IDN IDR 86,994 1.9422,500 Security Bank Corp. PHL PHP 86,190 1.9219,700 Siam Commercial Bank PCL, fgn. THA THB 83,801 1.8717,500 Bangkok Bank PCL, NVDR THA THB 77,859 1.74

113,820 Military Commercial Joint Stock Bank VNM VND 69,979 1.5676,500 Bank Mandiri Persero Tbk PT IDN IDR 65,726 1.4616,700 Hong Leong Financial Group Bhd. MYS MYR 52,937 1.1832,600 Alliance Financial Group Bhd. MYS MYR 27,033 0.60

1,363,074 30.38

Capital Markets43,906 ARA Asset Management Ltd. SGP SGD 51,702 1.15

Chemicals34,830 Petrovietnam Fertilizer and Chemicals JSC VNM VND 34,186 0.76

Commercial Services & Supplies361,400 PT Astra Graphia Tbk IDN IDR 50,968 1.14

Construction & Engineering190,400 Sino-Thai Engineering & Construction PCL, fgn. THA THB 147,381 3.28

97,600 Gamuda Bhd. MYS MYR 103,996 2.322,566,400 Surya Semesta Internusa Tbk PT IDN IDR 82,673 1.84

260,000 Mitrajaya Holdings Bhd. MYS MYR 73,027 1.63184,700 Acset Indonusa Tbk PT IDN IDR 38,661 0.86

89,800 Econpile Holdings Bhd. MYS MYR 36,633 0.82394,000 Indonesia Pondasi Raya Tbk PT IDN IDR 32,754 0.73

45,700 Unique Engineering & Construction PCL, fgn. THA THB 25,240 0.56

540,365 12.04

Construction Materials183,000 Semen Indonesia (Persero) Tbk PT IDN IDR 124,626 2.78

90,300 Cahya Mata Sarawak Bhd. MYS MYR 80,517 1.79

205,143 4.57

Consumer Finance15,000 AEON Thana Sinsap Thailand PCL, fgn. THA THB 43,305 0.97

Diversified Financial Services9,360 Ayala Corp. PHL PHP 137,854 3.07

Electronic Equipment, Instruments & Components109,800 SVI PCL, fgn. THA THB 15,620 0.35

Food & Staples Retailing45,270 Robinsons Retail Holdings Inc. PHL PHP 67,769 1.51

Food Products21,020 Vietnam Dairy Products JSC VNM VND 115,942 2.59

153,100 Oldtown Bhd. MYS MYR 65,185 1.45

181,127 4.04

Health Care Providers & Services48,300 RHT Health Trust SGP SGD 30,523 0.68

Hotels, Restaurants & Leisure53,400 MK Restaurants Group PCL, fgn. THA THB 87,138 1.94

Independent Power and Renewable Electricity Producers630,400 Energy Development Corp. PHL PHP 65,456 1.46

Industrial Conglomerates26,900 Keppel Corp. Ltd. SGP SGD 107,570 2.4054,000 SembCorp Industries Ltd. SGP SGD 106,292 2.37

252,400 DMCI Holdings Inc. PHL PHP 67,477 1.50

281,339 6.27


— Templeton ASEAN Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Insurance8,526,800 Panin Financial Tbk PT IDN IDR 108,860 2.43

53,900 Vietnam National Reinsurance Corp. VNM VND 50,181 1.12169,200 Thaire Life Assurance PCL THA THB 45,545 1.01

204,586 4.56

Media80,600 Major Cineplex Group PCL, fgn. THA THB 73,630 1.64

Paper & Forest Products62,200 Ta Ann Holdings Bhd. MYS MYR 54,768 1.22

Pharmaceuticals20,000 DHG Pharmaceutical JSC VNM VND 86,074 1.92

Real Estate Management & Development234,900 Land and Houses PCL, fgn. THA THB 63,885 1.42325,500 WHA Corp. PCL, fgn. THA THB 26,875 0.60

90,760 2.02

Trading Companies & Distributors154,000 AKR Corporindo Tbk PT IDN IDR 68,584 1.53

Transportation Infrastructure35,300 Port of Hai Phong JSC VNM VND 26,354 0.59

Wireless Telecommunication Services33,000 Advanced Info Service PCL, fgn. THA THB 135,314 3.0188,700 Intouch Holdings PCL, fgn. THA THB 123,091 2.74

2,000 Globe Telecom Inc. PHL PHP 60,848 1.36

319,253 7.11

TOTAL SHARES 4,290,038 95.61

WARRANTSConstruction & Engineering

11,100 Gamuda Bhd., wts., 03/06/21 MYS MYR 2,994 0.06





— Templeton ASEAN Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


1,000,000,000 Export-Import Bank of India, senior note, 9.70%, 11/21/18 IND INR 15,410,771 2.22230,000,000 Export-Import Bank of India, senior note, 8.76%, 01/10/18 IND INR 3,444,452 0.50

18,855,223 2.72

Government and Municipal Bonds718,996,000,000 Government of Indonesia, senior note, FR69, 7.875%, 04/15/19 IDN IDR 53,928,007 7.78

3,500,000,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 53,836,903 7.761,310,000,000 Government of Thailand, senior bond, 3.875%, 06/13/19 THA THB 38,392,428 5.542,390,000,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 36,068,119 5.20


1,186,390,000 Government of the Philippines, senior note, 7-56, 3.875%, 11/22/19 PHL PHP 24,107,568 3.48241,600,000,000 Government of Indonesia, senior bond, FR47, 10.00%, 02/15/28 IDN IDR 20,264,103 2.92

24,030,000,000 Korea Treasury Bond, senior note, 1.375%, 09/10/21 KOR KRW 19,544,603 2.82216,408,000,000 Government of Indonesia, senior bond, FR42, 10.25%, 07/15/27 IDN IDR 18,468,453 2.66257,087,000,000 Government of Indonesia, senior bond, FR59, 7.00%, 05/15/27 IDN IDR 18,080,517 2.61

18,717,000,000 Korea Treasury Bond, senior bond, 4.25%, 06/10/21 KOR KRW 17,093,491 2.46157,890,000,000 Government of Indonesia, senior bond, FR39, 11.75%, 08/15/23 IDN IDR 14,063,310 2.03

15,279,000,000 Korea Treasury Bond, senior note, 2.00%, 03/10/21 KOR KRW 12,756,523 1.84150,000,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 11,412,135 1.65

13,248,400,000 Korea Treasury Bond, senior note, 1.50%, 06/10/19 KOR KRW 10,941,635 1.58467,151,000 Government of the Philippines, senior note, 5-72, 2.125%, 05/23/18 PHL PHP 9,298,408 1.34

105,300,000,000 Government of Indonesia, senior note, FR66, 5.25%, 05/15/18 IDN IDR 7,643,969 1.108,317,000,000 Korea Monetary Stabilization Bond, senior note, 1.25%, 08/02/18 KOR KRW 6,851,258 0.99

59,577,000,000 Government of Indonesia, senior bond, FR44, 10.00%, 09/15/24 IDN IDR 4,915,275 0.7119,331,000 Government of Malaysia, senior bond, 4.24%, 02/07/18 MYS MYR 4,353,827 0.6317,084,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 3,806,998 0.55

33,888,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 2,458,751 0.3521,215,000,000 Government of Indonesia, senior bond, FR37, 12.00%, 09/15/26 IDN IDR 2,003,793 0.2920,491,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 1,562,777 0.2314,899,000,000 Government of Indonesia, senior bond, FR56, 8.375%, 09/15/26 IDN IDR 1,136,295 0.1612,738,000,000 Government of Indonesia, senior bond, 8.75%, 05/15/31 IDN IDR 990,392 0.14

46,730,000 Government of the Philippines, senior note, 7-51, 5.00%, 08/18/18 PHL PHP 955,546 0.1413,856,000,000 Government of Indonesia, senior bond, FR63, 5.625%, 05/15/23 IDN IDR 919,448 0.13

42,850,000 Government of the Philippines, senior note, 3.375%, 08/20/20 PHL PHP 851,973 0.128,109,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 669,606 0.10

18,840,000 Government of the Philippines, senior note, 5.875%, 01/31/18 PHL PHP 390,683 0.064,587,000,000 Government of Indonesia, senior bond, 9.00%, 03/15/29 IDN IDR 361,751 0.051,040,000,000 Government of Indonesia, FR52, 10.50%, 08/15/30 IDN IDR 91,063 0.01

457,817,525 66.02

Securities Maturing Within One Year3,430,000,000 Government of India, senior bond, 7.99%, 07/09/17 IND INR 50,911,773 7.341,600,000,000 Government of India, senior note, 8.07%, 07/03/17 IND INR 23,742,928 3.42

59,690,000 Bank of Negara Monetary Note, 0.00%, 09/19/17 MYS MYR 13,013,112 1.88600,000,000 Government of India, senior bond, 7.46%, 08/28/17 IND INR 8,870,046 1.28

38,600,000 Bank of Negara Monetary Note, 0.00%, 06/22/17 MYS MYR 8,466,617 1.2231,840,000 Malaysia Treasury Bill, 0.00%, 03/10/17 MYS MYR 7,055,619 1.0230,433,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 6,825,174 0.9927,920,000 Bank of Negara Monetary Note, 0.00%, 04/20/17 MYS MYR 6,161,569 0.8925,082,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 5,597,602 0.8124,640,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 5,497,367 0.79

3,500,000 Government of Malaysia, senior bond, 3.814%, 02/15/17 MYS MYR 781,009 0.112,960,000 Bank of Negara Monetary Note, 0.00%, 07/20/17 MYS MYR 647,518 0.091,600,000 Malaysia Treasury Bill, 0.00%, 08/11/17 MYS MYR 350,367 0.05

42,300,000 Korea Monetary Stabilization Bond, senior note, 1.96%, 02/02/17 KOR KRW 35,056 0.01

137,955,757 19.90

TOTAL BONDS 614,628,505 88.64




— Templeton Asian Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAutomobiles

102,000 Astra International Tbk PT IDN IDR 62,650 1.82

Banks116,000 China Construction Bank Corp., H CHN HKD 89,306 2.60131,667 Industrial and Commercial Bank of China Ltd., H CHN HKD 78,954 2.30

5,265 United Overseas Bank Ltd. SGP SGD 74,181 2.1612,000 Oversea-Chinese Banking Corp. Ltd. SGP SGD 73,928 2.15

4,570 DBS Group Holdings Ltd. SGP SGD 54,730 1.59119,222 Bank of China Ltd., H CHN HKD 52,888 1.54

15,889 China Merchants Bank Co. Ltd., H CHN HKD 37,251 1.0814,900 MCB Bank Ltd. PAK PKR 33,991 0.99

7,900 Siam Commercial Bank PCL, fgn. THA THB 33,605 0.98930 Malayan Banking Bhd. MYS MYR 1,700 0.05

530,534 15.44

Building Products388,000 Dynasty Ceramic PCL, fgn. THA THB 48,054 1.40

Chemicals44,000 Fauji Fertilizer Co. Ltd. PAK PKR 44,011 1.2826,200 Chevron Lubricants Lanka PLC LKA LKR 27,459 0.80

71,470 2.08

Construction Materials4,000 Siam Cement PCL, fgn. THA THB 55,342 1.61

Diversified Telecommunication Services25,000 Singapore Telecommunications Ltd. SGP SGD 63,022 1.8447,000 Telekomunikasi Indonesia Persero Tbk PT, B IDN IDR 13,885 0.40

76,907 2.24

Electric Utilities3,000 Power Assets Holdings Ltd. HKG HKD 26,443 0.77

Electronic Equipment, Instruments & Components14,000 Simplo Technology Co. Ltd. TWN TWD 40,074 1.1714,600 Hon Hai Precision Industry Co. Ltd. TWN TWD 37,878 1.1015,400 Synnex Technology International Corp. TWN TWD 15,422 0.45

93,374 2.72

Equity Real Estate Investment Trusts (REIT’s)10,000 Link REIT HKG HKD 64,994 1.8936,000 CapitaLand Mall Trust SGP SGD 46,868 1.37

111,862 3.26

Food Products3,000 Vietnam Dairy Products JSC VNM VND 16,547 0.48

Hotels, Restaurants & Leisure14,000 Sands China Ltd. HKG HKD 60,842 1.7780,667 NagaCorp Ltd. KHM HKD 46,500 1.3522,100 Berjaya Sports Toto Bhd. MYS MYR 14,582 0.43

121,924 3.55

Insurance17,000 AIA Group Ltd. HKG HKD 95,912 2.79

Internet Software & Services9,700 Tencent Holdings Ltd. CHN HKD 237,293 6.911,850 Alibaba Group Holding Ltd., ADR CHN USD 162,449 4.73

295 NetEase Inc., ADR CHN USD 63,525 1.85245 Baidu Inc., ADR CHN USD 40,280 1.17

503,547 14.66

Machinery12,950 Zhengzhou Yutong Bus Co. Ltd., A CHN CNY 36,529 1.0614,000 Shin Zu Shing Co. Ltd. TWN TWD 35,631 1.04

72,160 2.10

Metals & Mining70 POSCO KOR KRW 14,931 0.43

Oil, Gas & Consumable Fuels24,600 Oil & Natural Gas Corp. Ltd. IND INR 69,270 2.0215,600 Coal India Ltd. IND INR 68,869 2.0040,667 CNOOC Ltd. CHN HKD 50,870 1.48

4,500 PTT PCL, fgn. THA THB 46,695 1.3662,000 China Petroleum and Chemical Corp., H CHN HKD 43,974 1.2856,667 PetroChina Co. Ltd., H CHN HKD 42,238 1.23

1,800 Reliance Industries Ltd. IND INR 28,671 0.8313,000 United Tractors Tbk PT IDN IDR 20,505 0.60


— Templeton Asian Dividend Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Oil, Gas & Consumable Fuels (continued)5,900 Oil & Gas Development Co. Ltd. PAK PKR 9,355 0.27

380,447 11.07

Real Estate Management & Development153,500 Land and Houses PCL, fgn. THA THB 41,747 1.22

3,000 Sun Hung Kai Properties Ltd. HKG HKD 37,913 1.10320,300 Sansiri PCL, fgn. THA THB 14,831 0.43

2,000 Cheung Kong Property Holdings Ltd. HKG HKD 12,264 0.36

106,755 3.11

Semiconductors & Semiconductor Equipment27,000 Taiwan Semiconductor Manufacturing Co. Ltd. TWN TWD 150,996 4.4017,000 Novatek Microelectronics Corp. Ltd. TWN TWD 55,786 1.62

6,000 MediaTek Inc. TWN TWD 40,025 1.1711,000 Vanguard International Semiconductor Corp. TWN TWD 19,048 0.55

265,855 7.74

Technology Hardware, Storage & Peripherals70 Samsung Electronics Co. Ltd. KOR KRW 104,485 3.04

2,000 Asustek Computer Inc. TWN TWD 16,331 0.486,000 Pegatron Corp. TWN TWD 14,235 0.41

135,051 3.93

Textiles, Apparel & Luxury Goods12,000 Anta Sports Products Ltd. CHN HKD 35,824 1.04

Tobacco2,000 British American Tobacco Malaysia Bhd. MYS MYR 19,884 0.58

Transportation Infrastructure9,740 Noibai Cargo Terminal Services Jsc VNM VND 38,069 1.11

Wireless Telecommunication Services7,500 China Mobile Ltd. CHN HKD 79,502 2.325,800 Advanced Info Service PCL, fgn. THA THB 23,783 0.69

103,285 3.01

TOTAL SHARES 2,986,827 86.94




— Templeton Asian Dividend Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


611,759 Hankook Tire Co. Ltd. KOR KRW 29,390,661 0.62

Automobiles279,549,300 Brilliance China Automotive Holdings Ltd. CHN HKD 385,013,415 8.10272,664,600 Astra International Tbk PT IDN IDR 167,474,453 3.52

11,054,695 Guangzhou Automobile Group Co. Ltd., H CHN HKD 13,371,982 0.28

565,859,850 11.90

Banks230,998,500 Bank Rakyat Indonesia Persero Tbk PT IDN IDR 200,178,696 4.21

39,498,700 Siam Commercial Bank PCL, fgn. THA THB 168,020,969 3.53602,886,604 Bank Danamon Indonesia Tbk PT IDN IDR 166,020,360 3.49

53,571,889 MCB Bank Ltd. PAK PKR 122,213,198 2.5724,680,000 Kasikornbank PCL, fgn. THA THB 122,195,258 2.5723,297,689 TISCO Financial Group PCL, fgn. THA THB 39,154,415 0.8215,695,000 China Merchants Bank Co. Ltd., H CHN HKD 36,796,067 0.78

854,578,963 17.97

Chemicals901,000 Fauji Fertilizer Co. Ltd. PAK PKR 901,216 0.02

Communications Equipment11,561,400 VTech Holdings Ltd. HKG HKD 154,609,218 3.25

Construction & Engineering3,259,448 Hyundai Development Co-Engineering & Construction KOR KRW 121,359,768 2.55

831,383 Daelim Industrial Co. Ltd. KOR KRW 59,981,909 1.263,871,178 Samsung Engineering Co. Ltd. KOR KRW 33,027,930 0.70

214,369,607 4.51

Construction Materials48,125,500 Semen Indonesia (Persero) Tbk PT IDN IDR 32,774,278 0.69

8,764,000 Anhui Conch Cement Co. Ltd., H CHN HKD 23,846,850 0.501,649,836 Siam Cement PCL, fgn. THA THB 22,826,183 0.48

79,447,311 1.67

Food & Staples Retailing23,586,434 Dairy Farm International Holdings Ltd. HKG USD 169,586,460 3.57

Health Care Equipment & Supplies10,494,162 Microlife Corp. TWN TWD 24,057,239 0.51

Household Durables106,788,602 Samson Holding Ltd. HKG HKD 7,711,860 0.16

Industrial Conglomerates3,482,200 Keppel Corp. Ltd. SGP SGD 13,924,952 0.29

IT Services3,472,619 Infosys Ltd. IND INR 51,643,764 1.09

875,439 Tata Consultancy Services Ltd. IND INR 30,474,703 0.64

82,118,467 1.73

Machinery78,259,510 China International Marine Containers (Group) Co. Ltd. CHN HKD 113,031,983 2.3812,038,994 Samsung Heavy Industries Co. Ltd. KOR KRW 92,242,894 1.9443,977,863 SembCorp Marine Ltd. SGP SGD 41,915,499 0.88

247,190,376 5.20

Media184,637,800 BEC World PCL, fgn. THA THB 85,494,769 1.80

Metals & Mining742,656,000 Aluminum Corp. of China Ltd., H CHN HKD 306,467,109 6.45

52,361,919 Vedanta Ltd. IND INR 166,552,921 3.50

473,020,030 9.95

Multiline Retail383,364 Lotte Shopping Co. Ltd. KOR KRW 70,337,357 1.48

Oil, Gas & Consumable Fuels187,695,823 Oil & Gas Development Co. Ltd. PAK PKR 297,615,892 6.26

20,828,871 PTT PCL, fgn. THA THB 216,132,218 4.5552,387,648 Oil & Natural Gas Corp. Ltd. IND INR 147,515,898 3.1045,225,213 PTT Exploration and Production PCL, fgn. THA THB 121,420,551 2.5564,846,463 United Tractors Tbk PT IDN IDR 102,281,487 2.15

147,178,000 Yanzhou Coal Mining Co. Ltd., H CHN HKD 100,402,556 2.11103,780,600 PetroChina Co. Ltd., H CHN HKD 77,355,325 1.63

74,061,448 Inner Mongolia Yitai Coal Co. Ltd., B CHN USD 68,803,085 1.4540,616,200 CNOOC Ltd. CHN HKD 50,806,259 1.07

2,922,742 Reliance Industries Ltd. IND INR 46,554,292 0.98


— Templeton Asian Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Oil, Gas & Consumable Fuels (continued)2,067,777 Coal India Ltd. IND INR 9,128,647 0.19

1,238,016,210 26.04

Pharmaceuticals1,520,000 TTY Biopharm Co. Ltd. TWN TWD 4,800,567 0.10

Real Estate Management & Development473,365,673 Land and Houses PCL, fgn. THA THB 128,739,618 2.71242,727,534 Sansiri PCL, fgn. THA THB 11,239,267 0.24

20,519,847 Peninsula Land Ltd. IND INR 4,091,616 0.08

144,070,501 3.03

Semiconductors & Semiconductor Equipment5,527,000 MediaTek Inc. TWN TWD 36,869,941 0.77

Technology Hardware, Storage & Peripherals3,773,000 Catcher Technology Co. Ltd. TWN TWD 26,041,135 0.55

Textiles, Apparel & Luxury Goods117,524,479 Win Hanverky Holdings Ltd. CHN HKD 19,096,117 0.40

352,913 Youngone Holdings Co. Ltd. KOR KRW 17,393,445 0.37639,919 Youngone Corp. KOR KRW 16,246,375 0.34

121,472,229 Victory City International Holdings Ltd. HKG HKD 3,994,509 0.0826,610 Fila Korea Ltd. KOR KRW 1,553,943 0.03

58,284,389 1.22

Transportation Infrastructure47,914,954 Shenzhen Chiwan Wharf Holdings Ltd., B CHN HKD 77,669,865 1.63

242,090 Noibai Cargo Terminal Services Jsc VNM VND 946,204 0.02

78,616,069 1.65

TOTAL SHARES 4,659,297,148 97.99

WARRANTSReal Estate Management & Development

92,257,482 Land and Houses PCL, wts., 05/05/17 THA THB 15,826,598 0.3352,673,434 Sansiri PCL, wts., 11/24/17 THA THB 146,927 0.01

15,973,525 0.34



TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESMachinery

2,033,504 Daewoo Shipbuilding & Marine Engineering Co. Ltd. ** KOR KRW 6,796,566 0.14






— Templeton Asian Growth Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


5,042,696 Aramex PJSC ARE AED 5,587,893 0.48

Auto Components10,106,633 Apollo Tyres Ltd. IND INR 27,499,504 2.38

396,153 Hankook Tire Co. Ltd. KOR KRW 19,032,329 1.64518,640 Sebang Global Battery Co. Ltd. KOR KRW 16,067,141 1.39

62,492,000 Xinchen China Power Holdings Ltd. CHN HKD 9,267,625 0.8037,916 Mando Corp. KOR KRW 7,364,891 0.64

2,251,520 Danang Rubber JSC VNM VND 3,164,053 0.27

82,395,543 7.12

Automobiles832,915 Jiangling Motors Corp. Ltd., B CHN HKD 2,064,430 0.18

Banks38,536,822 Federal Bank Ltd. IND INR 37,910,435 3.2812,500,385 TISCO Financial Group PCL, fgn. THA THB 21,008,318 1.82

4,141,600 Habib Bank Ltd. PAK PKR 10,802,880 0.936,391,471 Commercial Bank of Ceylon PLC - voting shares LKA LKR 6,186,671 0.53

103,367,720 Bank Permata Tbk PT IDN IDR 4,258,236 0.3714,308,000 Bank Danamon Indonesia Tbk PT IDN IDR 3,940,076 0.34

1,598,000 United Bank Ltd. PAK PKR 3,651,325 0.32724,885 Hatton National Bank PLC LKA LKR 1,088,779 0.09

88,846,720 7.68

Beverages685,932 Hite Jinro Co. Ltd. KOR KRW 11,988,491 1.04

41,016,300 Pepsi-Cola Products Philippines Inc. PHL PHP 2,679,317 0.23

14,667,808 1.27

Biotechnology89,563 Medy-tox Inc. KOR KRW 26,455,195 2.29

1,242,852 Biocon Ltd. IND INR 17,372,243 1.50

43,827,438 3.79

Building Products38,968,500 Dynasty Ceramic PCL, fgn. THA THB 4,826,224 0.42

Capital Markets459,170 Tata Investment Corp. Ltd. IND INR 3,784,605 0.33

Chemicals6,770,420 Tata Chemicals Ltd. IND INR 50,114,691 4.337,657,500 Bloomage Biotechnology Corp. Ltd. CHN HKD 11,533,896 1.00

965,397 Jordan Phosphate Mines JOR JOD 2,917,802 0.25

64,566,389 5.58

Construction Materials1,742,085 JK Cement Ltd. IND INR 18,454,097 1.59

13,235,738 Huaxin Cement Co. Ltd., B CHN USD 9,265,017 0.8020,499,100 Asia Cement China Holdings Corp. CHN HKD 4,705,448 0.41

657,120 HA TIEN 1 Cement JSC VNM VND 591,584 0.05

33,016,146 2.85

Consumer Finance6,326,832 Equitas Holdings Ltd. IND INR 13,541,959 1.17

Containers & Packaging10,500,546 Amvig Holdings Ltd. HKG HKD 3,710,297 0.32

Diversified Consumer Services736,995 Daekyo Co. Ltd. KOR KRW 4,963,135 0.43

Diversified Financial Services2,479,514 Bajaj Holdings & Investment Ltd. IND INR 66,384,132 5.74

Electronic Equipment, Instruments & Components56,180,000 Ju Teng International Holdings Ltd. HKG HKD 17,387,581 1.50

3,187,000 Sunny Optical Technology Group Co. Ltd. CHN HKD 13,953,014 1.215,961,300 Delta Electronics Thailand PCL, fgn. THA THB 13,552,188 1.174,629,753 Flytech Technology Co. Ltd. TWN TWD 13,423,709 1.168,292,094 Redington India Ltd. IND INR 11,573,988 1.00

13,818,000 Digital China Holdings Ltd. CHN HKD 10,459,947 0.916,967,800 Synnex Technology International Corp. TWN TWD 6,977,569 0.602,416,130 Simplo Technology Co. Ltd. TWN TWD 6,916,097 0.60

94,244,093 8.15

Food & Staples Retailing26,208,900 7-Eleven Malaysia Holdings Bhd. MYS MYR 8,296,174 0.72


— Templeton Asian Smaller Companies Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Food Products28,824,496 Uni-President China Holdings Ltd. CHN HKD 20,332,709 1.76

3,491,500 Biostime International Holdings Ltd. CHN HKD 10,783,600 0.93200,396 Binggrae Co. Ltd. KOR KRW 10,590,360 0.92

41,706,669 3.61

Health Care Equipment & Supplies416,614 Vieworks Co. Ltd. KOR KRW 20,636,500 1.79

3,628,000 Pacific Hospital Supply Co. Ltd. TWN TWD 9,412,488 0.81447,200 St. Shine Optical Co. Ltd. TWN TWD 8,474,264 0.73

25,294 I-Sens Inc. KOR KRW 615,979 0.05

39,139,231 3.38

Hotels, Restaurants & Leisure36,355,500 Melco Crown Philippines Resorts Corp. PHL PHP 2,770,669 0.24

Household Products2,329,153 Eveready Industries India Ltd. IND INR 7,412,003 0.64

Independent Power and Renewable Electricity Producers5,454,000 The Hub Power Co. Ltd. PAK PKR 6,453,356 0.56

Industrial Conglomerates19,519,070 Hemas Holdings PLC LKA LKR 12,899,786 1.1274,930,000 Chongqing Machinery & Electric Co. Ltd., H CHN HKD 8,696,499 0.75

21,596,285 1.87

Insurance876,418,408 Panin Financial Tbk PT IDN IDR 11,189,012 0.97

Internet & Direct Marketing Retail155,651 GS Home Shopping Inc. KOR KRW 22,175,905 1.92401,220 Interpark Holdings Corp. KOR KRW 1,668,350 0.14

23,844,255 2.06

Internet Software & Services1,938,402 PChome Online Inc. TWN TWD 16,902,672 1.46

153,700 Sohu.com Inc. CHN USD 5,208,893 0.45

22,111,565 1.91

IT Services16,212,600 TravelSky Technology Ltd., H CHN HKD 34,078,971 2.95

Leisure products4,284,700 Merida Industry Co. Ltd. TWN TWD 19,011,132 1.64

Machinery6,878,000 Shin Zu Shing Co. Ltd. TWN TWD 17,505,209 1.51

Media1,504,534 KT Skylife Co. Ltd. KOR KRW 21,560,017 1.86

13,577,200 Major Cineplex Group PCL, fgn. THA THB 12,403,160 1.0713,893,500 Media Prima Bhd. MYS MYR 3,561,642 0.31

37,524,819 3.24

Metals & Mining7,057,320 Hoa Phat Group JSC VNM VND 13,373,298 1.16

Multiline Retail59,890,200 Ramayana Lestari Sentosa Tbk PT IDN IDR 5,312,213 0.46

6,821,000 Aeon Co. (M) BHD MYS MYR 3,907,706 0.34

9,219,919 0.80

Oil, Gas & Consumable Fuels733,297 Great Eastern Shipping Co. Ltd. IND INR 3,916,591 0.34

Paper & Forest Products4,141,200 Ta Ann Holdings Bhd. MYS MYR 3,646,398 0.32

Personal Products248,224 Neopharm Co. Ltd. KOR KRW 5,366,427 0.46

Pharmaceuticals784,054 Bukwang Pharmaceutical Co. Ltd. KOR KRW 17,145,520 1.48

3,922,000 TTY Biopharm Co. Ltd. TWN TWD 12,386,726 1.07

29,532,246 2.55

Real Estate Management & Development5,418,984 Vingroup JSC VNM VND 9,995,052 0.86

Semiconductors & Semiconductor Equipment657,876 Silicon Works Co. Ltd. KOR KRW 15,149,204 1.31

40,050,000 Xinyi Solar Holdings Ltd. CHN HKD 13,015,152 1.133,812,000 Novatek Microelectronics Corp. Ltd. TWN TWD 12,509,144 1.08

315,816 Anapass Inc. KOR KRW 3,858,577 0.33

44,532,077 3.85






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Specialty Retail9,985,300 Luk Fook Holdings (International) Ltd. HKG HKD 26,075,482 2.25

36,746,258 Sa Sa International Holdings Ltd. HKG HKD 14,595,200 1.2683,761,680 Bonjour Holdings Ltd. HKG HKD 3,780,590 0.33

44,451,272 3.84

Technology Hardware, Storage & Peripherals7,445,000 Primax Electronics Ltd. TWN TWD 10,116,455 0.873,723,664 ADLINK Technology Inc. TWN TWD 7,010,303 0.61

17,126,758 1.48

Textiles, Apparel & Luxury Goods436,745 Fila Korea Ltd. KOR KRW 25,504,572 2.20

1,315,886 Vardhman Textiles Ltd. IND INR 21,531,062 1.86834,111 LF Corp. KOR KRW 14,889,226 1.29

1,127,000 Eclat Textile Co. Ltd. TWN TWD 11,719,869 1.01133,174 Youngone Holdings Co. Ltd. KOR KRW 6,563,529 0.57136,320 Youngone Corp. KOR KRW 3,460,916 0.30

83,669,174 7.23

Trading Companies & Distributors30,528,300 Hexindo Adiperkasa Tbk PT IDN IDR 6,911,213 0.60

Transportation Infrastructure16,088,737 COSCO Shipping Ports Ltd. CHN HKD 16,162,391 1.40

5,747,330 International Container Terminal Services Inc. PHL PHP 8,337,189 0.72

24,499,580 2.12

TOTAL SHARES 1,115,306,167 96.42








Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


4,022,010 Apollo Tyres Ltd. IND INR 10,943,633 1.57

Automobiles11,431,400 Brilliance China Automotive Holdings Ltd. CHN HKD 15,744,065 2.26

372,414 Tata Motors Ltd., A IND INR 1,639,169 0.23

17,383,234 2.49

Banks3,259,831 Banco Bradesco SA, ADR, pfd. BRA USD 28,393,128 4.071,968,100 Itau Unibanco Holding SA, ADR, pfd. BRA USD 20,232,068 2.905,971,196 Itausa-Investimentos Itau SA, pfd. BRA BRL 15,190,802 2.172,471,371 ICICI Bank Ltd. IND INR 9,284,750 1.33

73,100,748 10.47

Beverages2,006,461 Ambev SA BRA BRL 10,110,290 1.45

Biotechnology1,291,925 Biocon Ltd. IND INR 18,058,172 2.59

Chemicals3,776,000 Bloomage Biotechnology Corp. Ltd. CHN HKD 5,687,495 0.81

Containers & Packaging21,516,500 CPMC Holdings Ltd. CHN HKD 10,543,904 1.51

Diversified Consumer Services28,627,800 Perfect Shape Beauty Technology Ltd. CHN HKD 2,141,224 0.31

Diversified Financial Services708,101 Bajaj Holdings & Investment Ltd. IND INR 18,958,018 2.71

Diversified Telecommunication Services20,450,000 China Telecom Corp. Ltd., H CHN HKD 9,441,099 1.35

Electronic Equipment, Instruments & Components3,893,510 Hon Hai Precision Industry Co. Ltd. TWN TWD 10,101,328 1.45

Food & Staples Retailing44,069 Magnit PJSC RUS RUB 7,912,172 1.13

Food Products221,100 BRF SA BRA BRL 3,277,744 0.47

Health Care Providers & Services1,856,100 Shanghai Pharmaceuticals Holding Co. Ltd., H CHN HKD 4,255,782 0.61

Independent Power and Renewable Electricity Producers1,715,700 AES Tiete Energia SA, units consisting of common stock and preferred stock BRA BRL 7,380,035 1.06

Insurance7,443,000 China Life Insurance Co. Ltd., H CHN HKD 19,388,561 2.783,509,000 Ping An Insurance (Group) Co. of China Ltd. CHN HKD 17,557,444 2.51

36,946,005 5.29

Internet & Direct Marketing Retail813,819 JD.com Inc., ADR CHN USD 20,703,555 2.97

Internet Software & Services2,175,610 Tencent Holdings Ltd. CHN HKD 53,222,415 7.62

296,940 Alibaba Group Holding Ltd., ADR CHN USD 26,074,302 3.7485,530 Baidu Inc., ADR CHN USD 14,061,987 2.01

361,257 PChome Online Inc. TWN TWD 3,150,125 0.45641,570 Leju Holdings Ltd., ADR CHN USD 3,079,536 0.44

61,035 Mail.ru Group Ltd., GDR, Reg S RUS USD 1,119,992 0.16

100,708,357 14.42

IT Services40,970,000 Chinasoft International Ltd. CHN HKD 19,178,683 2.75

5,788,800 TravelSky Technology Ltd., H CHN HKD 12,168,088 1.74689,310 Infosys Ltd. IND INR 10,251,215 1.47219,670 Tata Consultancy Services Ltd. IND INR 7,646,881 1.09609,621 Mindtree Ltd. IND INR 4,679,728 0.67

53,924,595 7.72

Media199,350 Naspers Ltd., N ZAF ZAR 29,224,873 4.19

Metals & Mining3,314,302 Maharashtra Seamless Ltd. IND INR 11,727,308 1.68


— Templeton BRIC Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Oil, Gas & Consumable Fuels28,445,251 China Petroleum and Chemical Corp., H CHN HKD 20,175,238 2.89

1,092,600 Reliance Industries Ltd. IND INR 17,403,253 2.494,389,233 Cairn India Ltd. IND INR 15,640,642 2.244,156,365 Oil & Natural Gas Corp. Ltd. IND INR 11,703,711 1.681,185,100 Petroleo Brasileiro SA, ADR, pfd. BRA USD 10,440,731 1.49

75,363,575 10.79

Pharmaceuticals403,775 Dr. Reddy’s Laboratories Ltd. IND INR 18,184,404 2.60

8,363,700 China Medical System Holdings Ltd. CHN HKD 13,244,727 1.90

31,429,131 4.50

Road & Rail1,882,019 Globaltrans Investment PLC, GDR, Reg S RUS USD 11,913,180 1.71

Semiconductors & Semiconductor Equipment2,943,000 Taiwan Semiconductor Manufacturing Co. Ltd. TWN TWD 16,458,565 2.36

Software758,900 Totvs SA BRA BRL 5,605,419 0.80

Wireless Telecommunication Services3,389,141 China Mobile Ltd. CHN HKD 35,925,900 5.15

TOTAL SHARES 639,225,341 91.56


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESMetals & Mining

605,100 MMC Norilsk Nickel PJSC, ADR RUS USD 10,159,629 1.46

Oil, Gas & Consumable Fuels392,650 LUKOIL PJSC, ADR RUS USD 22,027,665 3.15

1,572,451 Gazprom PAO, ADR RUS USD 7,940,878 1.14

29,968,543 4.29

TOTAL SHARES 40,128,172 5.75




— Templeton BRIC Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


487,244 Weifu High-Technology Co. Ltd., B CHN HKD 1,159,282 0.23928,750 Xinyi Automobile Glass Hong Kong Enterprises Ltd., Reg S HKG HKD 177,258 0.03

1,336,540 0.26

Automobiles5,872,450 Jiangling Motors Corp. Ltd., B CHN HKD 14,555,225 2.84

13,778,500 Dongfeng Motor Group Co. Ltd., H CHN HKD 13,450,673 2.623,791,679 Chongqing Changan Automobile Co. Ltd., B CHN HKD 5,422,622 1.06

33,428,520 6.52

Banks33,101,851 China Construction Bank Corp., H CHN HKD 25,484,306 4.9710,794,375 Industrial and Commercial Bank of China Ltd., H CHN HKD 6,472,867 1.26

513,600 BOC Hong Kong (Holdings) Ltd. HKG HKD 1,837,952 0.36

33,795,125 6.59

Beverages1,375,828 Yantai Changyu Pioneer Wine Co. Ltd., B CHN HKD 3,683,305 0.72

Chemicals870,900 Green Seal Holding Ltd. CHN TWD 3,904,419 0.76

Construction Materials7,430,000 Xinyi Glass Holdings Ltd. CHN HKD 6,074,692 1.182,175,300 Anhui Conch Cement Co. Ltd., H CHN HKD 5,918,993 1.15

16,153,794 BBMG Corp., H CHN HKD 5,582,845 1.097,120,619 Huaxin Cement Co. Ltd., B CHN USD 4,984,433 0.97

18,261,700 Asia Cement China Holdings Corp. CHN HKD 4,191,866 0.82

26,752,829 5.21

Distributors14,177,160 Dah Chong Hong Holdings Ltd. CHN HKD 5,411,618 1.06

Diversified Telecommunication Services1,088,000 China Telecom Corp. Ltd., H CHN HKD 502,294 0.10

Electric Utilities956,800 Cheung Kong Infrastructure Holdings Ltd. HKG HKD 7,612,942 1.48

Electronic Equipment, Instruments & Components3,597,787 Synnex Technology International Corp. TWN TWD 3,602,831 0.70

Food & Staples Retailing3,028,772 Dairy Farm International Holdings Ltd. HKG USD 21,776,871 4.241,073,479 President Chain Store Corp. TWN TWD 7,640,655 1.49

29,417,526 5.73


375,560 Uni-President Enterprises Corp. TWN TWD 617,939 0.12

15,429,961 3.01

Health Care Equipment & Supplies130,000 Ginko International Co. Ltd. TWN TWD 1,335,870 0.26


Industrial Conglomerates1,083,500 Hopewell Holdings Ltd. HKG HKD 3,737,652 0.73

Insurance2,708,800 AIA Group Ltd. HKG HKD 15,282,739 2.982,543,000 China Life Insurance Co. Ltd., H CHN HKD 6,624,360 1.29

607,000 Ping An Insurance (Group) Co. of China Ltd. CHN HKD 3,037,153 0.59

24,944,252 4.86

Internet & Direct Marketing Retail36,900 Ctrip.com International Ltd., ADR CHN USD 1,476,000 0.29

Internet Software & Services1,495,700 Tencent Holdings Ltd. CHN HKD 36,589,630 7.13

187,270 Alibaba Group Holding Ltd., ADR CHN USD 16,444,179 3.2068,576 Baidu Inc., ADR CHN USD 11,274,580 2.20

64,308,389 12.53


652,000 Chinasoft International Ltd. CHN HKD 305,211 0.06

10,682,372 2.08

Leisure products615,200 Merida Industry Co. Ltd. TWN TWD 2,729,631 0.53


— Templeton China Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Marine9,228,000 COSCO Shipping Energy Transportation Co. Ltd., H CHN HKD 5,152,781 1.01

12,892,562 Sinotrans Shipping Ltd. CHN HKD 2,427,383 0.47

7,580,164 1.48

Media505,300 Poly Culture Group Corp. Ltd., H CHN HKD 1,232,868 0.24

Oil, Gas & Consumable Fuels44,227,600 China Petroleum and Chemical Corp., H CHN HKD 31,369,115 6.1111,100,000 PetroChina Co. Ltd., H CHN HKD 8,273,648 1.61

2,368,000 CNOOC Ltd. CHN HKD 2,962,099 0.58

42,604,862 8.30

Paper & Forest Products43,715,000 Nine Dragons Paper Holdings Ltd. CHN HKD 39,630,724 7.72

Pharmaceuticals987,000 Tong Ren Tang Technologies Co. Ltd., H CHN HKD 1,830,300 0.36

Real Estate Management & Development698,000 China Overseas Land & Investment Ltd. CHN HKD 1,849,752 0.36


12,454,000 GCL-Poly Energy Holdings Ltd. CHN HKD 1,493,613 0.29

49,483,578 9.64

Textiles, Apparel & Luxury Goods9,511,006 Anta Sports Products Ltd. CHN HKD 28,393,809 5.53


14,814,000 Sichuan Expressway Co. Ltd., H CHN HKD 5,692,916 1.11

12,268,310 2.39


TOTAL SHARES 492,228,461 95.92



13,712 Templeton China A Shares Fund, Class X (acc) HKD CHN HKD 20,744,292 4.04





— Templeton China Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


347,046 Wizz Air Holdings PLC CHE GBP 7,276,830 2.48

Automobiles467,826 Ford Otomotiv Sanayi AS TUR TRY 3,854,179 1.31

Banks11,941,190 Sberbank of Russia PJSC RUS RUB 32,091,677 10.92

2,445,823 Moneta Money Bank AS CZE CZK 7,496,878 2.55576,355 Alior Bank SA POL PLN 7,091,069 2.41246,632 Raiffeisen Bank International AG AUT EUR 4,286,464 1.46

1,395,796 Turkiye Garanti Bankasi AS TUR TRY 2,865,412 0.985,411,395 Banca Transilvania ROU RON 2,843,409 0.971,109,968 Turkiye Halk Bankasi AS TUR TRY 2,792,977 0.95

59,467,886 20.24

Beverages4,467,343 Stock Spirits Group PLC GBR GBP 9,453,382 3.22

Biotechnology156,250 Mabion SA POL PLN 2,633,310 0.90

Chemicals310,045 Ciech SA POL PLN 4,104,595 1.40

Diversified Financial Services1,185,162 Haci Omer Sabanci Holding AS TUR TRY 2,921,520 0.99

Energy Equipment & Services559,712 TMK PAO, GDR, Reg S RUS USD 2,712,917 0.92

Food & Staples Retailing489,367 X5 Retail Group NV, GDR, Reg S RUS USD 15,092,150 5.14

1,963,780 DIXY Group PJSC RUS RUB 8,529,477 2.901,645,271 Bizim Toptan Satis Magazalari AS TUR TRY 4,787,086 1.63

477,000 Migros Ticaret AS TUR TRY 2,259,162 0.77

30,667,875 10.44

Food Products1,420,211 Pinar Sut Mamulleri Sanayii AS TUR TRY 6,064,461 2.06

21,593 Wawel SA POL PLN 5,392,724 1.84

11,457,185 3.90

Health Care Equipment & Supplies21,620 Medicalgorithmics SA POL PLN 1,511,851 0.51

Health Care Providers & Services664,937 Georgia Healthcare Group PLC, Reg S GEO GBP 2,780,099 0.95295,514 MED Life SA ROU RON 1,712,283 0.58

4,492,382 1.53

Health Care Technology852,060 Synektik SA POL PLN 3,054,603 1.04

Hotels, Restaurants & Leisure3,825,142 Fortuna Entertainment Group NV POL CZK 12,149,543 4.13

70,952 DO & CO Restaurants & Catering AG TUR TRY 4,457,622 1.522,435,146 Olympic Entertainment Group AS EST EUR 4,334,560 1.48

20,941,725 7.13

Household Durables133,482 Amica SA POL PLN 5,648,994 1.92

Industrial Conglomerates832,208 KOC Holding AS TUR TRY 3,094,005 1.05

Internet Software & Services907,814 Yandex NV, A RUS USD 17,367,702 5.91588,443 Mail.ru Group Ltd., GDR, Reg S RUS USD 10,262,241 3.49

27,629,943 9.40

IT Services154,780 Luxoft Holding Inc. RUS USD 8,267,094 2.81886,903 IAlbatros Group SA POL PLN 2,061,952 0.70

10,329,046 3.51

Oil, Gas & Consumable Fuels8,218,990 Gazprom PAO RUS RUB 19,704,210 6.71

303,200 LUKOIL PJSC, ADR RUS USD 16,165,672 5.5072,287,200 OMV Petrom SA ROU RON 4,156,652 1.41

40,026,534 13.62

Pharmaceuticals295,701 Richter Gedeon Nyrt HUN HUF 5,937,481 2.02


— Templeton Eastern Europe Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Professional Services835,684 Work Service SA POL PLN 1,935,284 0.66

Road & Rail1,580,433 Globaltrans Investment PLC, GDR, Reg S RUS USD 9,507,833 3.23

309,879 Prime Car Management SA POL PLN 2,321,713 0.79

11,829,546 4.02

Specialty Retail132,071 FF Group GRC EUR 2,539,725 0.86500,000 Wittchen SA POL PLN 1,912,813 0.65

4,452,538 1.51

Textiles, Apparel & Luxury Goods193,717 Pegas Nonwovens SA CZE CZK 5,514,666 1.88

TOTAL SHARES 280,948,277 95.60


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESMetals & Mining

263,400 MMC Norilsk Nickel PJSC, ADR RUS USD 4,203,085 1.43





— Templeton Eastern Europe Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


436,219 Hanon Systems KOR KRW 3,721,712 0.662,612,200 Nemak SAB de CV MEX MXN 2,333,041 0.41

31,600 Hyundai Wia Corp. KOR KRW 1,910,781 0.3439,400 Hankook Tire Co. Ltd. KOR KRW 1,892,889 0.34

241,600 Mahle-Metal Leve SA BRA BRL 1,541,038 0.27412,791 Weifu High-Technology Co. Ltd., B CHN HKD 982,139 0.17

12,381,600 2.19

Automobiles16,104,545 Brilliance China Automotive Holdings Ltd. CHN HKD 22,180,223 3.9118,498,000 Astra International Tbk PT IDN IDR 11,361,733 2.00

651,124 Tata Motors Ltd., A IND INR 2,865,904 0.51

36,407,860 6.42

Banks1,747,598 Itau Unibanco Holding SA, ADR, pfd. BRA USD 17,965,307 3.173,112,130 ICICI Bank Ltd. IND INR 11,692,032 2.061,010,460 Banco Bradesco SA, ADR, pfd. BRA USD 8,801,107 1.552,938,800 Habib Bank Ltd. PAK PKR 7,665,517 1.351,102,000 Kasikornbank PCL, fgn. THA THB 5,456,206 0.961,840,700 Kiatnakin Bank PCL, fgn. THA THB 3,029,325 0.54

10,936,100 Bank Danamon Indonesia Tbk PT IDN IDR 3,011,537 0.53373,950 Grupo Financiero Santander Mexico SAB de CV, B, ADR MEX USD 2,688,701 0.48558,600 Siam Commercial Bank PCL, fgn. THA THB 2,376,192 0.42

6,894,700 Equity Group Holdings Ltd. KEN KES 2,035,373 0.36570,800 Moneta Money Bank AS CZE CZK 1,840,932 0.33271,880 Deutsche Bank AG/London (CRTP Samba Financial Group) SAU USD 1,764,561 0.31507,100 BDO Unibank Inc. PHL PHP 1,146,098 0.20

48,082 DBS Group Holdings Ltd. SGP SGD 575,828 0.10

70,048,716 12.36


9,895,898 Thai Beverage PCL, fgn. THA SGD 5,809,457 1.03121,050 Hite Jinro Co. Ltd. KOR KRW 2,115,672 0.37299,326 Nigerian Breweries PLC NGA NGN 140,481 0.02

14,132,743 2.49

Biotechnology596,052 Biocon Ltd. IND INR 8,331,451 1.47

Chemicals362,966 HSBC Bank PLC (CRTP Saudi Basic Industries Corp.) SAU USD 8,852,121 1.56420,500 Tata Chemicals Ltd. IND INR 3,112,544 0.55

1,429,300 Bloomage Biotechnology Corp. Ltd. CHN HKD 2,152,843 0.38

14,117,508 2.49

Construction & Engineering249,280 Hyundai Development Co-Engineering & Construction KOR KRW 9,281,499 1.64

91,449 Daelim Industrial Co. Ltd. KOR KRW 6,597,784 1.16

15,879,283 2.80

Construction Materials5,281,400 Semen Indonesia (Persero) Tbk PT IDN IDR 3,596,723 0.64

Distributors3,263,100 Dah Chong Hong Holdings Ltd. CHN HKD 1,245,570 0.22

Diversified Financial Services518,899 Remgro Ltd. ZAF ZAR 8,424,470 1.49

63,155 Bajaj Holdings & Investment Ltd. IND INR 1,690,851 0.30

10,115,321 1.79

Diversified Telecommunication Services149,800 Telesites SAB de CV MEX MXN 81,199 0.01

Electronic Equipment, Instruments & Components4,790,060 Hon Hai Precision Industry Co. Ltd. TWN TWD 12,427,338 2.19

25,000 Largan Precision Co. Ltd. TWN TWD 2,919,472 0.52

15,346,810 2.71

Food & Staples Retailing538,583 Dairy Farm International Holdings Ltd. HKG USD 3,872,412 0.68337,061 Massmart Holdings Ltd. ZAF ZAR 3,095,193 0.55

6,967,605 1.23


85,537 M Dias Branco SA BRA BRL 3,022,586 0.534,000 HSBC Bank PLC (CRTP Savola Al-Azizia United Co., 144A) SAU USD 42,753 0.01

7,526,974 1.33


— Templeton Emerging Markets Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Gas Utilities12,273,400 Perusahaan Gas Negara (Persero) Tbk PT IDN IDR 2,459,690 0.43

Hotels, Restaurants & Leisure4,530,000 MGM China Holdings Ltd. HKG HKD 9,393,565 1.651,483,600 Sands China Ltd. HKG HKD 6,447,523 1.149,148,000 NagaCorp Ltd. KHM HKD 5,273,269 0.93

11,796,829 Bloomberry Resorts Corp. PHL PHP 1,462,726 0.26

22,577,083 3.98

Insurance1,610,000 China Life Insurance Co. Ltd., H CHN HKD 4,193,952 0.74

574,340 Ping An Insurance (Group) Co. of China Ltd., A CHN CNY 2,930,002 0.52

7,123,954 1.26

Internet & Direct Marketing Retail250,484 Interpark Holdings Corp. KOR KRW 1,041,561 0.18

Internet Software & Services965,900 Tencent Holdings Ltd. CHN HKD 23,629,019 4.17124,780 Alibaba Group Holding Ltd., ADR CHN USD 10,956,932 1.93

56,245 Baidu Inc., ADR CHN USD 9,247,240 1.6330,972 NetEase Inc., ADR CHN USD 6,669,511 1.18

316,791 Mail.ru Group Ltd., GDR, Reg S RUS USD 5,813,115 1.02266,326 Yandex NV, A RUS USD 5,361,142 0.95

6,400 MercadoLibre Inc. ARG USD 999,296 0.18

62,676,255 11.06

IT Services344,753 Infosys Ltd. IND INR 5,127,065 0.90

42,260 Tata Consultancy Services Ltd. IND INR 1,471,103 0.26

6,598,168 1.16

Media194,090 Naspers Ltd., N ZAF ZAR 28,453,753 5.02154,425 IMAX Corp. USA USD 4,848,945 0.86333,780 KT Skylife Co. Ltd. KOR KRW 4,783,078 0.84433,800 Poly Culture Group Corp. Ltd., H CHN HKD 1,058,417 0.19

18,167 Grupo Clarin SA, B, GDR, Reg S ARG USD 410,574 0.07

39,554,767 6.98

Metals & Mining43,500 MMC Norilsk Nickel PJSC RUS RUB 7,186,633 1.27

189,300 Compania de Minas Buenaventura SA, ADR PER USD 2,135,304 0.375,300 POSCO KOR KRW 1,130,457 0.20

10,452,394 1.84

Oil, Gas & Consumable Fuels14,360,000 China Petroleum and Chemical Corp., H CHN HKD 10,185,054 1.80

248,200 Reliance Industries Ltd. IND INR 3,953,402 0.7066,050 LUKOIL PJSC, ADR RUS USD 3,705,405 0.65

756,650 Coal India Ltd. IND INR 3,340,395 0.591,065,500 PTT Exploration and Production PCL, fgn. THA THB 2,860,652 0.502,469,900 Inner Mongolia Yitai Coal Co. Ltd., B CHN USD 2,294,537 0.41

662,650 Oil & Natural Gas Corp. Ltd. IND INR 1,865,925 0.33

28,205,370 4.98

Personal Products529,815 Unilever PLC GBR GBP 21,488,588 3.79

Pharmaceuticals333,444 Richter Gedeon Nyrt HUN HUF 7,044,831 1.25161,715 Glenmark Pharmaceuticals Ltd. IND INR 2,114,291 0.37

9,159,122 1.62

Real Estate Management & Development8,829,200 Land and Houses PCL, fgn. THA THB 2,401,247 0.42


210,560 SK Hynix Inc. KOR KRW 7,796,226 1.38

43,045,137 7.60

Software250,800 Totvs SA BRA BRL 1,852,469 0.33


616,000 Catcher Technology Co. Ltd. TWN TWD 4,251,614 0.751,706,800 Pegatron Corp. TWN TWD 4,049,472 0.72

43,836,424 7.74

Textiles, Apparel & Luxury Goods63,029 Fila Korea Ltd. KOR KRW 3,680,701 0.6539,890 Youngone Corp. KOR KRW 1,012,734 0.18

4,693,435 0.83






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Trading Companies & Distributors125,040 iMarketkorea Inc. KOR KRW 1,077,168 0.19



506,278 MTN Group Ltd. ZAF ZAR 4,649,462 0.82151,611 America Movil SAB de CV, L, ADR MEX USD 1,905,750 0.34

17,383,415 3.07

TOTAL SHARES 543,726,019 95.95


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESOil, Gas & Consumable Fuels

48,485 LUKOIL PJSC, ADR RUS USD 2,720,008 0.48









Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


8,685 Naspers Ltd., N ZAF ZAR 1,273,228 2.71813,900 Brilliance China Automotive Holdings Ltd. CHN HKD 1,120,956 2.39

1,019,200 Astra International Tbk PT IDN IDR 626,007 1.33227,200 MGM China Holdings Ltd. HKG HKD 471,130 1.00556,000 NagaCorp Ltd. KHM HKD 320,500 0.68

72,000 Sands China Ltd. HKG HKD 312,902 0.6720,287 KT Skylife Co. Ltd. KOR KRW 290,713 0.62

7,838 IMAX Corp. USA USD 246,113 0.523,758 Fila Korea Ltd. KOR KRW 219,456 0.47

22,949 Hanon Systems KOR KRW 195,795 0.4233,115 Tata Motors Ltd., A IND INR 145,755 0.31

128,000 Nemak SAB de CV MEX MXN 114,321 0.242,200 Hankook Tire Co. Ltd. KOR KRW 105,694 0.231,500 Hyundai Wia Corp. KOR KRW 90,702 0.19

12,600 Mahle-Metal Leve SA BRA BRL 80,369 0.17567,300 Bloomberry Resorts Corp. PHL PHP 70,341 0.15172,000 Dah Chong Hong Holdings Ltd. CHN HKD 65,655 0.14

25,800 Poly Culture Group Corp. Ltd., H CHN HKD 62,949 0.132,030 Youngone Corp. KOR KRW 51,538 0.11

18,800 Weifu High-Technology Co. Ltd., B CHN HKD 44,730 0.106,155 Interpark Holdings Corp. KOR KRW 25,594 0.065,256 Corporacion GEO SAB de CV, B MEX MXN 1,513 0.00

5,935,961 12.64

Consumer Staples26,475 Unilever PLC GBR GBP 1,073,791 2.29

1,876,800 Univanich Palm Oil PCL, fgn. THA THB 397,871 0.852,829 Anheuser-Busch InBev SA/NV BEL EUR 299,305 0.64

349,600 Uni-President China Holdings Ltd. CHN HKD 246,607 0.5227,600 Dairy Farm International Holdings Ltd. HKG USD 198,444 0.42

288,700 Thai Beverage PCL, fgn. THA SGD 169,483 0.364,300 M Dias Branco SA BRA BRL 151,947 0.32

11,906 Massmart Holdings Ltd. ZAF ZAR 109,331 0.235,880 Hite Jinro Co. Ltd. KOR KRW 102,769 0.22

15,373 Nigerian Breweries PLC NGA NGN 7,215 0.02500 HSBC Bank PLC (CRTP Savola Al-Azizia United Co., 144A) SAU USD 5,344 0.01

2,762,107 5.88

Energy736,000 China Petroleum and Chemical Corp., H CHN HKD 522,019 1.11

12,372 Reliance Industries Ltd. IND INR 197,065 0.423,250 LUKOIL PJSC, ADR RUS USD 182,325 0.39

38,425 Coal India Ltd. IND INR 169,635 0.3657,900 PTT Exploration and Production PCL, fgn. THA THB 155,450 0.33

120,400 Inner Mongolia Yitai Coal Co. Ltd., B CHN USD 111,852 0.2433,800 Oil & Natural Gas Corp. Ltd. IND INR 95,176 0.20

1,433,522 3.05

Financials83,772 Itau Unibanco Holding SA, ADR, pfd. BRA USD 861,176 1.83

2,088,619 Bank Danamon Indonesia Tbk PT IDN IDR 575,155 1.22152,073 ICICI Bank Ltd. IND INR 571,326 1.22

50,430 Banco Bradesco SA, ADR, pfd. BRA USD 439,245 0.9426,637 Remgro Ltd. ZAF ZAR 432,459 0.9259,700 Kasikornbank PCL, fgn. THA THB 295,586 0.6385,000 China Life Insurance Co. Ltd., H CHN HKD 221,420 0.47

100,100 Kiatnakin Bank PCL, fgn. THA THB 164,739 0.3527,700 Ping An Insurance (Group) Co. of China Ltd., A CHN CNY 141,312 0.3019,332 Grupo Financiero Santander Mexico SAB de CV, B, ADR MEX USD 138,997 0.3030,400 Siam Commercial Bank PCL, fgn. THA THB 129,317 0.2743,400 Habib Bank Ltd. PAK PKR 113,204 0.24

329,800 Equity Group Holdings Ltd. KEN KES 97,360 0.2128,100 Moneta Money Bank AS CZE CZK 90,627 0.19

1,534 Bajaj Holdings & Investment Ltd. IND INR 41,070 0.092,705 DBS Group Holdings Ltd. SGP SGD 32,395 0.07

4,345,388 9.25

Health Care28,980 Biocon Ltd. IND INR 405,074 0.8616,334 Richter Gedeon Nyrt HUN HUF 345,096 0.74

8,257 Glenmark Pharmaceuticals Ltd. IND INR 107,954 0.23

858,124 1.83

Industrials12,247 Hyundai Development Co-Engineering & Construction KOR KRW 455,995 0.97

4,460 Daelim Industrial Co. Ltd. KOR KRW 321,776 0.6957,647 COSCO Shipping Ports Ltd. CHN HKD 57,911 0.12

6,417 iMarketkorea Inc. KOR KRW 55,280 0.12

890,962 1.90


— Templeton Emerging Markets Balanced Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Information Technology333,500 Taiwan Semiconductor Manufacturing Co. Ltd. TWN TWD 1,865,080 3.97

1,130 Samsung Electronics Co. Ltd. KOR KRW 1,686,686 3.5949,000 Tencent Holdings Ltd. CHN HKD 1,198,698 2.55

227,130 Hon Hai Precision Industry Co. Ltd. TWN TWD 589,266 1.255,870 Alibaba Group Holding Ltd., ADR CHN USD 515,445 1.10

33,490 Infosys Ltd., ADR IND USD 496,657 1.062,820 Baidu Inc., ADR CHN USD 463,636 0.99

10,720 SK Hynix Inc. KOR KRW 396,920 0.851,508 NetEase Inc., ADR CHN USD 324,733 0.69

13,619 Yandex NV, A RUS USD 274,150 0.5891,000 Pegatron Corp. TWN TWD 215,902 0.4614,468 Infosys Ltd. IND INR 215,164 0.4630,000 Catcher Technology Co. Ltd. TWN TWD 207,059 0.44

8,856 Mail.ru Group Ltd., GDR, Reg S RUS USD 162,508 0.351,000 Largan Precision Co. Ltd. TWN TWD 116,779 0.25

11,800 Totvs SA BRA BRL 87,158 0.19400 MercadoLibre Inc. ARG USD 62,456 0.13

8,878,297 18.91

Materials14,845 HSBC Bank PLC (CRTP Saudi Basic Industries Corp.) SAU USD 362,044 0.7722,840 Compania de Minas Buenaventura SA, ADR PER USD 257,635 0.5521,300 Tata Chemicals Ltd. IND INR 157,663 0.33

215,900 Semen Indonesia (Persero) Tbk PT IDN IDR 147,032 0.3165,200 Bloomage Biotechnology Corp. Ltd. CHN HKD 98,206 0.21

300 POSCO KOR KRW 63,988 0.14

1,086,568 2.31

Real Estate481,900 Land and Houses PCL, fgn. THA THB 131,061 0.28

Telecommunication Services59,000 China Mobile Ltd. CHN HKD 625,417 1.3325,650 MTN Group Ltd. ZAF ZAR 235,560 0.50

8,299 America Movil SAB de CV, L, ADR MEX USD 104,318 0.238,200 Telesites SAB de CV MEX MXN 4,445 0.01

969,740 2.07

Utilities610,700 Perusahaan Gas Negara (Persero) Tbk PT IDN IDR 122,389 0.26

TOTAL SHARES 27,414,119 58.38

WARRANTSReal Estate

925,360 Land and Houses PCL, wts., 05/05/17 THA THB 158,744 0.34



TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESEnergy

3,200 LUKOIL PJSC, ADR RUS USD 179,520 0.38

Materials13,300 MMC Norilsk Nickel PJSC, ADR RUS USD 223,307 0.48



443,334 Tanzania Government International Bond, senior note, Reg S, FRN, 7.25%,03/09/20 † TZA USD 466,732 0.99

440,000 Government of Zambia, senior bond, Reg S, 8.97%, 07/30/27 ZMB USD 435,915 0.93242,983 Metinvest BV, senior note, Reg S, PIK, 8.75%, 02/14/18 ‡ UKR USD 224,152 0.48

1,126,799 2.40

Corporate Bonds210,000 Play Topco SA, senior note, 144A, PIK, 7.75%, 02/28/20 ‡ POL EUR 225,818 0.48150,000 Edcon Ltd., senior secured note, first lien, Reg S, 9.50%, 03/01/18 *,^ ZAF USD 23,250 0.05100,000 Edcon Ltd., senior secured note, first lien, Reg S, 9.50%, 03/01/18 *,^ ZAF EUR 16,309 0.03

11,998 Edcon Ltd., senior secured note, Reg S, PIK, 8.00%, 06/30/19 ^,‡ ZAF EUR 7,133 0.015,999 Edcon Ltd., senior secured note, Reg S, PIK, 8.00%, 06/30/19 ^,‡ ZAF EUR 3,566 0.01

19,262 Edcon Ltd., senior secured note, Reg S, PIK, 12.75%, 06/30/19 ^,‡ ZAF EUR 3,141 0.01

279,217 0.59

Government and Municipal Bonds4,263 Nota Do Tesouro Nacional, 10.00%, 01/01/25 BRA BRL 1,220,919 2.60

16,654,000 Argentine Bonos del Tesoro, senior note, 15.50%, 10/17/26 ARG ARS 1,010,803 2.1510,600,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 806,458 1.72

10,998,000 Argentine Bonos del Tesoro, 18.20%, 10/03/21 ARG ARS 704,872 1.502,264 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 642,333 1.37

7,801,000 Government of South Africa, R186, 10.50%, 12/21/26 ZAF ZAR 626,580 1.331,406,500,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 486,735 1.04

83,200 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 390,471 0.83






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)84,800 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 388,325 0.83

1,812 Letra Tesouro Nacional, Strip, 07/01/20 BRA BRL 383,534 0.825,953,000 Argentine Bonos del Tesoro, 16.00%, 10/17/23 ARG ARS 360,162 0.77

975,700,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 334,036 0.7110,407,048 Government of Uruguay, senior bond, Index Linked, 4.375%, 12/15/28 URY UYU 326,368 0.70

323,000 Government of Ukraine, Reg S, 7.75%, 09/01/22 UKR USD 313,310 0.67323,000 Government of Ukraine, Reg S, 7.75%, 09/01/23 UKR USD 310,080 0.66

33,040,000 Serbia Treasury Note, 8.00%, 10/22/20 SRB RSD 305,986 0.6545,220,000 Government of Sri Lanka, A, 9.00%, 05/01/21 LKA LKR 271,408 0.5812,970,000 Government of the Philippines, senior note, 7-56, 3.875%, 11/22/19 PHL PHP 263,552 0.5614,400,000 Government of India, senior note, 8.83%, 11/25/23 IND INR 235,465 0.50

910,000 Government of Ghana, senior note, 24.00%, 11/23/20 GHA GHS 235,001 0.50591,000,000 Titulos de Tesoreria, senior bond, B, 10.00%, 07/24/24 COL COP 232,108 0.49

250,000 Government of Zambia, Reg S, 5.375%, 09/20/22 ZMB USD 227,556 0.48200,000 Government of Montenegro, Reg S, 5.375%, 05/20/19 MNE EUR 218,580 0.47223,000 Government of Ukraine, Reg S, 7.75%, 09/01/21 UKR USD 218,540 0.47220,000 Government of Ukraine, Reg S, 7.75%, 09/01/24 UKR USD 209,000 0.45

2,346,000,000 Government of Indonesia, FR34, 12.80%, 06/15/21 IDN IDR 207,318 0.44222 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 202,501 0.43

200,000 Government of Zambia, senior note, Reg S, 8.50%, 04/14/24 ZMB USD 197,009 0.42649,800,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 194,629 0.41


541,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRN thereafter,05/31/40 UKR USD 165,005 0.35

510 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 150,999 0.32494 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 143,101 0.30

7,700,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 118,441 0.25470,000 Government of Ghana, 23.23%, 02/19/18 GHA GHS 110,635 0.24112,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 105,435 0.22

2,920,000 Uruguay Notas del Tesoro, 7, 13.25%, 04/08/18 URY UYU 98,747 0.215,800,000 Government of India, senior bond, 7.80%, 05/03/20 IND INR 88,432 0.191,120,000 Government of South Africa, 8.75%, 01/31/44 ZAF ZAR 74,545 0.161,020,000 Government of South Africa, 8.875%, 02/28/35 ZAF ZAR 69,752 0.154,300,000 Government of India, senior note, 8.12%, 12/10/20 IND INR 66,811 0.14

67 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/22 BRA BRL 60,688 0.131,665,400 Uruguay Notas del Tesoro, senior note, 13.90%, 07/29/20 URY UYU 56,655 0.12

245,000 Government of Malaysia, senior bond, 4.24%, 02/07/18 MYS MYR 55,180 0.125,440,000 Serbia Treasury Note, 10.00%, 06/05/21 SRB RSD 54,874 0.125,300,000 Serbia Treasury Note, 10.00%, 03/20/21 SRB RSD 52,493 0.11

200,000 Government of Ghana, 23.47%, 05/21/18 GHA GHS 47,343 0.10720,000 Government of South Africa, 8.00%, 01/31/30 ZAF ZAR 47,182 0.10

129,000,000 Titulos de Tesoreria, senior bond, B, 11.25%, 10/24/18 COL COP 46,443 0.105,040,000 Serbia Treasury Note, 10.00%, 03/02/18 SRB RSD 45,634 0.10

630,000 Government of South Africa, 9.00%, 01/31/40 ZAF ZAR 43,144 0.09620,000 Government of South Africa, 8.75%, 02/28/48 ZAF ZAR 41,265 0.09

1,052,280 Uruguay Notas del Tesoro, 14, Index Linked, 4.00%, 06/10/20 URY UYU 34,430 0.0795,000,000 Titulos de Tesoreria, senior bond, B, 7.00%, 05/04/22 COL COP 32,103 0.07

930,313 Government of Uruguay, Index Linked, 4.25%, 04/05/27 URY UYU 29,242 0.06129,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 28,746 0.06

1,700,000 Government of India, senior bond, 8.35%, 05/14/22 IND INR 26,821 0.061,338,000 Government of the Philippines, senior note, 5-72, 2.125%, 05/23/18 PHL PHP 26,632 0.06

69,000,000 Titulos de Tesoreria, senior bond, B, 11.00%, 07/24/20 COL COP 26,127 0.0676,000,000 Titulos de Tesoreria, senior note, B, 7.00%, 09/11/19 COL COP 25,672 0.05

1,200,000 Government of the Philippines, senior note, 7-51, 5.00%, 08/18/18 PHL PHP 24,538 0.053,100,000 Government of Sri Lanka, D, 8.50%, 06/01/18 LKA LKR 20,042 0.04

22 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/19 BRA BRL 20,009 0.04667,359 Government of Uruguay, senior bond, Index Linked, 4.00%, 07/10/30 URY UYU 19,941 0.04300,000 Government of South Africa, 8.25%, 03/31/32 ZAF ZAR 19,689 0.04

251,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 19,143 0.043,800 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 18,873 0.04

1,100,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 16,600 0.042,500,000 Government of Sri Lanka, 10.60%, 07/01/19 LKA LKR 16,336 0.042,030,000 Government of Sri Lanka, A, 11.00%, 08/01/21 LKA LKR 13,057 0.03

10 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/24 BRA BRL 9,099 0.02243,937 Government of Uruguay, senior bond, Index Linked, 5.00%, 09/14/18 URY UYU 8,220 0.02

91,000,000 Government of Indonesia, FR36, 11.50%, 09/15/19 IDN IDR 7,415 0.02213,964 Uruguay Notas del Tesoro, 19, Index Linked, 2.50%, 09/27/22 URY UYU 6,263 0.01100,000 Government of South Africa, 7.00%, 02/28/31 ZAF ZAR 5,954 0.01

14,000,000 Government of Colombia, senior bond, 9.85%, 06/28/27 COL COP 5,509 0.0113,000,000 Government of Colombia, senior bond, 7.75%, 04/14/21 COL COP 4,525 0.0145,000,000 Government of Indonesia, FR35, 12.90%, 06/15/22 IDN IDR 4,100 0.0145,000,000 Government of Indonesia, FR43, 10.25%, 07/15/22 IDN IDR 3,716 0.0145,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 3,716 0.01

200,000 Government of India, senior note, 7.28%, 06/03/19 IND INR 3,002 0.01350,000 Government of Sri Lanka, 9.25%, 05/01/20 LKA LKR 2,164 0.00

10,000 Government of the Philippines, senior note, 3.375%, 08/20/20 PHL PHP 199 0.00

14,102,650 30.04






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year1,677,000 Government of Ghana, 23.00%, 08/21/17 GHA GHS 391,969 0.83

440,730 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 210,420 0.45344,720 Mexico Treasury Bill, 0.00%, 05/25/17 MEX MXN 162,164 0.35570,000 Government of Ghana, 23.00%, 02/13/17 GHA GHS 132,411 0.28

3,602,000 Uruguay Treasury Bill, Strip, 04/03/17 URY UYU 118,372 0.253,340,000 Uruguay Treasury Bill, Strip, 05/19/17 URY UYU 107,825 0.23

370,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 82,550 0.18330,000 Bank of Negara Monetary Note, 0.00%, 07/20/17 MYS MYR 72,190 0.15290,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 64,720 0.14280,000 Bank of Negara Monetary Note, 0.00%, 04/20/17 MYS MYR 61,792 0.13

9,300 Government of Mexico, senior note, M, 5.00%, 06/15/17 MEX MXN 44,603 0.0990,080 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 41,155 0.0977,410 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 36,783 0.08

156,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 34,986 0.07140,000 Government of Ghana, 25.40%, 07/31/17 GHA GHS 33,121 0.07

68,720 Mexico Treasury Bill, 0.00%, 05/11/17 MEX MXN 32,418 0.071,590,000 Philippine Treasury Bill, 0.00%, 05/03/17 PHL PHP 31,897 0.07

62,850 Mexico Treasury Bill, 0.00%, 09/14/17 MEX MXN 28,988 0.0646,220 Mexico Treasury Bill, 0.00%, 04/12/17 MEX MXN 21,914 0.05

100,000 Bank of Negara Monetary Note, 0.00%, 09/19/17 MYS MYR 21,801 0.0543,310 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 20,173 0.0490,000 Government of Malaysia, senior bond, 3.814%, 02/15/17 MYS MYR 20,083 0.0490,000 Bank of Negara Monetary Note, 0.00%, 06/22/17 MYS MYR 19,741 0.0480,000 Malaysia Treasury Bill, 0.00%, 01/20/17 MYS MYR 17,808 0.04

740,000 Philippine Treasury Bill, 0.00%, 05/17/17 PHL PHP 14,810 0.03700,000 Philippine Treasury Bill, 0.00%, 09/27/17 PHL PHP 13,922 0.03

26,720 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 12,478 0.031,230,000 Serbia Treasury Note, 10.00%, 11/08/17 SRB RSD 10,999 0.02

40,000 Malaysia Treasury Bill, 0.00%, 08/11/17 MYS MYR 8,759 0.02250,000 Uruguay Treasury Bill, Strip, 02/10/17 URY UYU 8,389 0.02230,000 Uruguay Notas del Tesoro, 11.00%, 03/21/17 URY UYU 7,843 0.02380,000 Philippine Treasury Bill, 0.00%, 06/07/17 PHL PHP 7,606 0.02370,000 Philippine Treasury Bill, 0.00%, 03/29/17 PHL PHP 7,431 0.02

14,730 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 7,016 0.01340,000 Philippine Treasury Bill, 0.00%, 02/15/17 PHL PHP 6,843 0.01

12,310 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 5,891 0.0120,000 Malaysia Treasury Bill, 0.00%, 03/10/17 MYS MYR 4,432 0.01

310,000 Serbia Treasury Note, 8.00%, 03/23/17 SRB RSD 2,671 0.0140,000 Philippine Treasury Bill, 0.00%, 02/22/17 PHL PHP 805 0.0020,000 Government of the Philippines, senior note, 3-21, 2.875%, 05/22/17 PHL PHP 404 0.00

650 Mexico Treasury Bill, 0.00%, 04/27/17 MEX MXN 307 0.0010,000 Philippine Treasury Bill, 0.00%, 02/08/17 PHL PHP 201 0.00

1,930,691 4.11

TOTAL BONDS 17,439,357 37.14


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETWARRANTSConsumer Discretionary

8,223 Corporacion GEO SAB de CV, wts., 12/30/27 ** MEX MXN 0 0.00812,630 Edcon Holdings Ltd., wts., 02/20/49 ** ZAF EUR 0 0.00

0 0.00




† Floating Rates are indicated as at December 31, 2016‡ Income may be received in additional securities and/or cash^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.* These Bonds are currently in default** These securities are submitted to a Fair Valuation






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESHousehold Durables

723,784 Corporacion GEO SAB de CV, B MEX MXN 208,381 0.01



TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETRIGHTSGovernment and Municipal Bonds

1,000,000 Banco Central Del Uruguay, rts., 02/19/21 URY USD 100 0.00

TOTAL RIGHTS 100 0.00


56,645,556 Tanzania Government International Bond, senior note, Reg S, FRN, 7.25%,03/09/20 † TZA USD 59,635,308 1.48

56,040,000 Government of Zambia, senior bond, Reg S, 8.97%, 07/30/27 ZMB USD 55,519,669 1.3852,940,000 Government of Iraq, Reg S, 5.80%, 01/15/28 IRQ USD 44,028,610 1.0947,540,187 Metinvest BV, senior note, Reg S, PIK, 8.75%, 02/14/18 ‡ UKR USD 43,855,822 1.09

5,733,333 Government of Bosnia & Herzegovina, senior bond, B, Reg S, FRN, 0.563%,12/11/21 † BIH DEM 2,598,630 0.06

1,402,830 Government of Ivory Coast, Reg S, 5.75%, 12/31/32 CIV USD 1,305,431 0.03710,000 Government of Iraq, 144A, 5.80%, 01/15/28 IRQ USD 590,486 0.02

207,533,956 5.15

Corporate Bonds47,090,000 Access Bank PLC, sub. note, Reg S, 9.25% to 06/24/19, FRN thereafter,

06/24/21 NGA USD 42,866,498 1.0623,580,000 Digicel Group Ltd., senior note, Reg S, 7.125%, 04/01/22 BMU USD 18,308,219 0.46

193,000,000 General Electric Co., senior note, A, 8.50%, 04/06/18 USA MXN 9,388,134 0.237,403,948 Edcon Ltd., senior secured note, Reg S, PIK, 8.00%, 06/30/19 ^,‡ ZAF EUR 4,401,595 0.11

20,640,000 Edcon Ltd., senior secured note, first lien, Reg S, 9.50%, 03/01/18 *,^ ZAF USD 3,199,200 0.0813,801,000 Edcon Ltd., senior secured note, first lien, Reg S, 9.50%, 03/01/18 *,^ ZAF EUR 2,250,819 0.06

7,922,862 Edcon Ltd., senior secured note, Reg S, PIK, 12.75%, 06/30/19 ^,‡ ZAF EUR 1,292,148 0.03

81,706,613 2.03

Government and Municipal Bonds3,875,012,600 Argentine Bonos del Tesoro, senior note, 15.50%, 10/17/26 ARG ARS 235,191,194 5.841,801,887,000 Government of South Africa, R186, 10.50%, 12/21/26 ZAF ZAR 144,728,305 3.59

393,198,000,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 136,070,493 3.38442,942 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 125,669,669 3.12

3,707,852,236 Government of Uruguay, senior bond, Index Linked, 4.375%, 12/15/28 URY UYU 116,279,258 2.891,201,120,000,000 Government of Indonesia, senior bond, FR40, 11.00%, 09/15/25 IDN IDR 105,201,056 2.61

477,334 Letra Tesouro Nacional, Strip, 07/01/20 BRA BRL 101,034,010 2.511,286,380,000,000 Government of Indonesia, senior bond, FR56, 8.375%, 09/15/26 IDN IDR 98,107,700 2.441,287,300,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 97,938,943 2.43

1,447,304,000 Argentine Bonos del Tesoro, 18.20%, 10/03/21 ARG ARS 92,759,020 2.3070,000,000 Republic of Senegal, senior note, Reg S, 6.25%, 07/30/24 SEN USD 70,135,100 1.7414,655,500 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 68,780,701 1.71

72,915 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/45 BRA BRL 67,172,785 1.6714,202,600 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 65,038,059 1.6165,400,000 Ethiopia International Bond, Reg S, 6.625%, 12/11/24 ETH USD 60,554,514 1.5059,209,000 Government of Kenya, senior note, Reg S, 6.875%, 06/24/24 KEN USD 56,356,606 1.40

3,434,100,000 Government of India, senior note, 8.83%, 11/25/23 IND INR 56,153,503 1.39192,914 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 55,883,091 1.39

916,950,400 Argentine Bonos del Tesoro, 16.00%, 10/17/23 ARG ARS 55,476,295 1.38152,086,900,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 52,067,726 1.29

10,166,100 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 50,489,770 1.2546,254,000 Government of Ukraine, Reg S, 7.75%, 09/01/21 UKR USD 45,328,920 1.1346,254,000 Government of Ukraine, Reg S, 7.75%, 09/01/22 UKR USD 44,866,380 1.1146,254,000 Government of Ukraine, Reg S, 7.75%, 09/01/23 UKR USD 44,403,840 1.10

149,815 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 44,356,600 1.1046,254,000 Government of Ukraine, Reg S, 7.75%, 09/01/24 UKR USD 43,941,300 1.0946,254,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 43,542,591 1.0846,254,000 Government of Ukraine, Reg S, 7.75%, 09/01/26 UKR USD 43,478,760 1.0846,254,000 Government of Ukraine, Reg S, 7.75%, 09/01/27 UKR USD 43,210,949 1.07

2,754,300,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 41,565,866 1.03167,997,000 Government of Ghana, 23.47%, 05/21/18 GHA GHS 39,767,520 0.99

43,270,000 Government of Zambia, Reg S, 5.375%, 09/20/22 ZMB USD 39,385,436 0.9896,843,000,000 Titulos de Tesoreria, senior bond, B, 10.00%, 07/24/24 COL COP 38,033,945 0.94

120,811,100,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 36,185,582 0.90161,250,000 Government of Ghana, 19.04%, 09/24/18 GHA GHS 36,070,168 0.90146,060,000 Ghana Treasury Note, 24.25%, 06/11/18 GHA GHS 34,929,000 0.87105,101,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRN

thereafter, 05/31/40 UKR USD 32,055,805 0.8034,963 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 31,892,029 0.79

107,389 Nota Do Tesouro Nacional, 10.00%, 01/01/25 BRA BRL 30,756,091 0.761,835,700,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 28,236,686 0.70

732,145,468 Government of Uruguay, Index Linked, 4.25%, 04/05/27 URY UYU 23,012,961 0.5722,800,000 Government of Zambia, senior note, Reg S, 8.50%, 04/14/24 ZMB USD 22,459,026 0.56

2,351,560,000 Serbia Treasury Note, 10.00%, 03/02/18 SRB RSD 21,291,723 0.53


— Templeton Emerging Markets Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)1,370,700,000 Government of India, senior bond, 7.80%, 05/03/20 IND INR 20,899,002 0.522,984,770,000 Government of Sri Lanka, A, 11.00%, 08/01/21 LKA LKR 19,197,670 0.48

266,960,000 Government of South Africa, 8.875%, 02/28/35 ZAF ZAR 18,255,935 0.4517,836,000 Government of Ukraine, Reg S, 7.75%, 09/01/20 UKR USD 17,702,230 0.4469,070,000 Government of Ghana, 24.50%, 04/22/19 GHA GHS 17,189,864 0.43

240,970,000 Government of South Africa, 8.75%, 01/31/44 ZAF ZAR 16,038,548 0.401,029,200,000 Government of India, senior note, 8.12%, 12/10/20 IND INR 15,991,137 0.40

63,568,000 Government of Ghana, 24.50%, 10/22/18 GHA GHS 15,740,153 0.3916,736 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/22 BRA BRL 15,159,348 0.38

219,110,000 Government of South Africa, 8.00%, 01/31/30 ZAF ZAR 14,358,530 0.3657,880,000 Government of Ghana, 23.23%, 02/19/18 GHA GHS 13,624,579 0.34

280,000,000 Inter-American Development Bank, senior bond, 7.50%, 12/05/24 SP MXN 13,402,556 0.3341,066,000 Government of Peru, senior bond, 7.84%, 08/12/20 PER PEN 13,320,723 0.3350,370,000 Ghana Treasury Note, 22.50%, 12/10/18 GHA GHS 11,703,747 0.29

1,137,400,000 Serbia Treasury Note, 8.00%, 10/22/20 SRB RSD 10,533,551 0.26136,920,000 Government of South Africa, 9.00%, 01/31/40 ZAF ZAR 9,376,694 0.23904,250,000 Serbia Treasury Note, 10.00%, 03/20/21 SRB RSD 8,956,028 0.22132,820,000 Government of South Africa, 8.75%, 02/28/48 ZAF ZAR 8,840,111 0.22

23,591,000,000 Titulos de Tesoreria, senior bond, B, 11.25%, 10/24/18 COL COP 8,493,388 0.218,568 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/19 BRA BRL 7,792,515 0.19

115,150,000 Government of South Africa, 8.25%, 03/31/32 ZAF ZAR 7,557,477 0.1919,813,000,000 Titulos de Tesoreria, senior bond, B, 11.00%, 07/24/20 COL COP 7,502,177 0.1922,019,000,000 Titulos de Tesoreria, senior bond, B, 7.00%, 05/04/22 COL COP 7,440,874 0.18

404,400,000 Government of India, senior bond, 8.35%, 05/14/22 IND INR 6,380,166 0.1674,610,000,000 Government of Indonesia, senior bond, FR42, 10.25%, 07/15/27 IDN IDR 6,367,285 0.16

24,790,000 Government of Ghana, 24.50%, 05/27/19 GHA GHS 6,149,562 0.1578,298,000,000 Government of Indonesia, senior note, FR69, 7.875%, 04/15/19 IDN IDR 5,872,710 0.1564,860,000,000 Government of Indonesia, senior bond, FR39, 11.75%, 08/15/23 IDN IDR 5,777,100 0.14

539,080,000 Serbia Treasury Note, 10.00%, 09/11/21 SRB RSD 5,399,354 0.1363,340,000,000 Government of Indonesia, FR43, 10.25%, 07/15/22 IDN IDR 5,230,339 0.1315,135,000,000 Titulos de Tesoreria, senior note, B, 7.00%, 09/11/19 COL COP 5,112,499 0.13

21,100,000 Government of Ghana, 22.49%, 04/23/18 GHA GHS 4,935,819 0.1261,050,000,000 Government of Indonesia, senior bond, FR46, 9.50%, 07/15/23 IDN IDR 4,916,625 0.1211,116,000,000 Government of Colombia, senior bond, 7.75%, 04/14/21 COL COP 3,869,353 0.1046,100,000,000 Government of Indonesia, senior bond, FR44, 10.00%, 09/15/24 IDN IDR 3,803,384 0.09

115,133,928 Government of Uruguay, senior bond, Index Linked, 4.00%, 07/10/30 URY UYU 3,440,198 0.09452,250,000 Government of Sri Lanka, 11.20%, 07/01/22 LKA LKR 2,906,627 0.07287,530,000 Serbia Treasury Note, 10.00%, 06/05/21 SRB RSD 2,900,332 0.07

31,620,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 2,611,040 0.0633,670,000 Government of South Africa, 7.00%, 02/28/31 ZAF ZAR 2,004,721 0.05

7,280,000 Government of Ghana, 24.75%, 07/19/21 GHA GHS 1,978,934 0.051,780,000 Government of El Salvador, senior bond, Reg S, 7.65%, 06/15/35 SLV USD 1,648,200 0.04

20,000,000,000 Government of Indonesia, FR36, 11.50%, 09/15/19 IDN IDR 1,629,756 0.041,780 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/24 BRA BRL 1,619,666 0.04

20,880,000,000 Government of Indonesia, FR48, 9.00%, 09/15/18 IDN IDR 1,593,328 0.0420,463,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 1,484,697 0.04

33,720,200 Uruguay Notas del Tesoro, senior note, 13.90%, 07/29/20 URY UYU 1,147,119 0.032,648,000,000 Government of Colombia, senior bond, 9.85%, 06/28/27 COL COP 1,041,911 0.033,185,000,000 Titulos de Tesoreria, B, 5.00%, 11/21/18 COL COP 1,039,358 0.03

101,570,000 Serbia Treasury Note, 10.00%, 11/21/18 SRB RSD 946,687 0.0253,300,000 Government of India, senior note, 7.28%, 06/03/19 IND INR 799,956 0.0221,362,921 Government of Uruguay, senior bond, Index Linked, 3.70%, 06/26/37 URY UYU 590,615 0.01

8,367,000,000 Government of Indonesia, senior bond, FR63, 5.625%, 05/15/23 IDN IDR 555,212 0.0160,090,000 Serbia Treasury Note, 10.00%, 04/27/18 SRB RSD 547,589 0.01

750,000 Government of Ghana, 24.50%, 06/21/21 GHA GHS 203,791 0.01370,000 Government of Ghana, 21.00%, 03/23/20 GHA GHS 88,222 0.00

3,113,527,968 77.29

Securities Maturing Within One Year7,596,000 Government of Mexico, senior note, M, 5.00%, 06/15/17 MEX MXN 36,430,469 0.90

140,461,000 Government of Ghana, 23.00%, 08/21/17 GHA GHS 32,830,260 0.82112,450,000 Government of Ghana, 24.44%, 05/29/17 GHA GHS 26,368,365 0.65

88,960,000 Government of Ghana, 23.00%, 02/13/17 GHA GHS 20,665,385 0.51376,717,000 Uruguay Treasury Bill, Strip, 04/03/17 URY UYU 12,379,955 0.31

51,150,000 Ghana Treasury Note, 23.30%, 12/11/17 GHA GHS 12,029,684 0.3023,938,100 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 10,936,535 0.2722,499,940 Mexico Treasury Bill, 0.00%, 05/25/17 MEX MXN 10,584,499 0.26

319,180,000 Uruguay Treasury Bill, Strip, 05/19/17 URY UYU 10,304,099 0.2618,388,700 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 8,737,825 0.2235,310,000 Government of Ghana, 25.40%, 07/31/17 GHA GHS 8,353,507 0.21

872,770,000 Serbia Treasury Note, 8.00%, 03/23/17 SRB RSD 7,519,149 0.1915,721,980 Mexico Treasury Bill, 0.00%, 05/11/17 MEX MXN 7,416,610 0.1814,297,160 Mexico Treasury Bill, 0.00%, 09/14/17 MEX MXN 6,594,303 0.1612,180,890 Mexico Treasury Bill, 0.00%, 04/12/17 MEX MXN 5,775,290 0.14

9,708,390 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 4,522,061 0.11326,170,000 Serbia Treasury Note, 10.00%, 11/08/17 SRB RSD 2,916,818 0.07

9,103,000,000 Colombian Tes Corto Plazo, Strip, 09/12/17 COL COP 2,894,645 0.07261,130,000 Serbia Treasury Note, 10.00%, 05/08/17 SRB RSD 2,275,880 0.06

7,002,000,000 Colombian Tes Corto Plazo, Strip, 06/13/17 COL COP 2,262,273 0.068,810,000 Ghana Treasury Note, 23.95%, 11/06/17 GHA GHS 2,077,952 0.05






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year (continued)3,998,050 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 1,867,029 0.057,890,000 Government of Ghana, 26.00%, 06/05/17 GHA GHS 1,862,370 0.05

19,585,000,000 Government of Indonesia, FR28, 10.00%, 07/15/17 IDN IDR 1,480,959 0.04153,310,000 Serbia Treasury Note, 8.00%, 04/06/17 SRB RSD 1,322,690 0.03

2,517,110 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 1,204,586 0.033,960,000 Ghana Treasury Note, 24.25%, 10/09/17 GHA GHS 934,394 0.02

2,801,000,000 Colombian Tes Corto Plazo, Strip, 03/14/17 COL COP 920,066 0.021,913,030 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 911,143 0.021,770,880 Mexico Treasury Bill, 0.00%, 04/27/17 MEX MXN 837,436 0.023,510,000 Government of Ghana, 25.48%, 04/24/17 GHA GHS 823,299 0.02

73,170,000 Serbia Treasury Note, 8.00%, 01/12/17 SRB RSD 625,124 0.02921,410 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 439,914 0.01240,000 The Export-Import Bank of Korea, senior note, 4.625%, 02/20/17 KOR EUR 253,686 0.01301,000 Government of Bosnia & Herzegovina, FRN, 0.563%, 12/11/17 † BIH DEM 152,233 0.00

247,510,493 6.14

TOTAL BONDS 3,650,279,030 90.61


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETWARRANTSHousehold Durables

1,132,334 Corporacion GEO SAB de CV, wts., 12/30/27 ** MEX MXN 0 0.00

Specialty Retail334,236,340 Edcon Holdings Ltd., wts., 02/20/49 ** ZAF EUR 0 0.00




† Floating Rates are indicated as at December 31, 2016‡ Income may be received in additional securities and/or cash^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.* These Bonds are currently in default** These securities are submitted to a Fair Valuation






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets



Airlines206,116 Wizz Air Holdings PLC CHE GBP 4,547,421 0.85

Auto Components4,585,755 Apollo Tyres Ltd. IND INR 12,477,547 2.34

483,495 Balkrishna Industries Ltd. IND INR 7,844,261 1.47162,809 Sebang Global Battery Co. Ltd. KOR KRW 5,043,721 0.95

4,504,800 Nemak SAB de CV MEX MXN 4,023,384 0.7676,245 Hankook Tire Co. Ltd. KOR KRW 3,663,029 0.69

568,400 Mahle-Metal Leve SA BRA BRL 3,625,521 0.6821,562,400 Xinchen China Power Holdings Ltd. CHN HKD 3,197,725 0.60

12,428 Mando Corp. KOR KRW 2,414,044 0.45

42,289,232 7.94

Automobiles180,600 Jiangling Motors Corp. Ltd., B CHN HKD 447,628 0.08

Banks14,514,572 Federal Bank Ltd. IND INR 14,278,649 2.68

2,259,500 Moneta Money Bank AS CZE CZK 7,287,290 1.3732,880,412 Faysal Bank Ltd. PAK PKR 6,898,980 1.30

196,520 Intercorp Financial Services Inc., Reg S PER USD 6,288,640 1.183,174,300 TISCO Financial Group PCL, fgn. THA THB 5,334,772 1.008,255,201 Banca Transilvania ROU RON 4,564,109 0.861,259,400 United Bank Ltd. PAK PKR 2,877,646 0.54

940,400 Habib Bank Ltd. PAK PKR 2,452,924 0.46358,451 Hatton National Bank PLC LKA LKR 538,394 0.10

6,609,060 Bank Permata Tbk PT IDN IDR 272,260 0.05

50,793,664 9.54

Beverages2,420,882 Stock Spirits Group PLC GBR GBP 5,390,261 1.01

623,200 Embotelladora Andina SA, pfd., A CHL CLP 2,129,763 0.40140,397 Coca-Cola Icetek AS TUR TRY 1,317,329 0.25

8,837,353 1.66

Biotechnology29,936 Medy-tox Inc. KOR KRW 8,842,521 1.66

420,391 Biocon Ltd. IND INR 5,876,110 1.1096,542 Hans Biomed Corp. KOR KRW 1,303,481 0.25

16,022,112 3.01


Chemicals1,665,399 Tata Chemicals Ltd. IND INR 12,327,293 2.322,890,243 Soda Sanayii AS TUR TRY 4,334,095 0.812,497,500 Bloomage Biotechnology Corp. Ltd. CHN HKD 3,761,790 0.71

20,423,178 3.84

Construction Materials510,451 JK Cement Ltd. IND INR 5,407,263 1.02

Consumer Finance2,208,300 Equitas Holdings Ltd. IND INR 4,726,648 0.89

Containers & Packaging3,688,000 Amvig Holdings Ltd. HKG HKD 1,303,130 0.24

Diversified Consumer Services552,100 Ser Educacional SA, Reg S BRA BRL 3,167,022 0.60

Diversified Financial Services782,845 Bajaj Holdings & Investment Ltd. IND INR 20,959,142 3.94

86,000 Hankook Tire Worldwide Co. Ltd. KOR KRW 1,478,147 0.28

22,437,289 4.22

Electronic Equipment, Instruments & Components4,984,942 Redington India Ltd. IND INR 6,957,911 1.312,391,900 Delta Electronics Thailand PCL, fgn. THA THB 5,437,653 1.02

14,695,400 Ju Teng International Holdings Ltd. HKG HKD 4,548,193 0.861,007,000 Sunny Optical Technology Group Co. Ltd. CHN HKD 4,408,750 0.831,451,061 Flytech Technology Co. Ltd. TWN TWD 4,207,270 0.795,502,000 Digital China Holdings Ltd. CHN HKD 4,164,903 0.783,252,900 Synnex Technology International Corp. TWN TWD 3,257,460 0.61

32,982,140 6.20

Energy Equipment & Services2,246,200 PetroVietnam Technical Services Corp. VNM VND 1,617,745 0.30


— Templeton Emerging Markets Smaller Companies Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Food & Staples Retailing11,425,300 7-Eleven Malaysia Holdings Bhd. MYS MYR 3,616,568 0.68

124,000 Lenta Ltd., GDR, Reg S RUS USD 1,016,800 0.19170,230 Bizim Toptan Satis Magazalari AS TUR TRY 521,157 0.10

5,154,525 0.97

Food Products3,055,851 Grupo Herdez SAB de CV MEX MXN 5,549,930 1.041,663,900 Biostime International Holdings Ltd. CHN HKD 5,139,004 0.967,098,000 Uni-President China Holdings Ltd. CHN HKD 5,006,907 0.94

10,099,800 Oldtown Bhd. MYS MYR 4,300,182 0.812,193,739 Agthia Group PJSC ARE AED 4,240,667 0.80

12,242,850 Century Pacific Food Inc. PHL PHP 3,993,776 0.751,557,400 Marfrig Global Foods SA BRA BRL 3,162,938 0.59

11,696 Wawel SA POL PLN 3,073,483 0.58493,746 Pinar Sut Mamulleri Sanayii AS TUR TRY 2,218,407 0.42505,555 Pinar Entegre Et ve Un Sanayi AS TUR TRY 1,490,425 0.28395,356 Arabian Food Industries Co., GDR, Reg S EGY USD 830,248 0.16

39,005,967 7.33

Gas Utilities244,965 Mahanagar Gas Ltd. IND INR 2,840,070 0.53

Health Care Equipment & Supplies113,818 Vieworks Co. Ltd. KOR KRW 5,637,845 1.06

1,022,000 Pacific Hospital Supply Co. Ltd. TWN TWD 2,651,478 0.50104,000 St. Shine Optical Co. Ltd. TWN TWD 1,970,759 0.37817,000 Hartalega Holdings Bhd. MYS MYR 879,650 0.17

11,695 I-Sens Inc. KOR KRW 284,806 0.05

11,424,538 2.15

Health Care Providers & Services1,458,000 Georgia Healthcare Group PLC, Reg S GEO GBP 6,414,099 1.20

115,064 HSBC Bank PLC (CRTP Mouwasat Medical Services Co., 144A) SAU USD 4,508,345 0.85555,678 Integrated Diagnostics Holdings PLC EGY USD 1,875,413 0.35

12,797,857 2.40

Hotels, Restaurants & Leisure475,588 Kuwait Food Co. Americana SAK KWT KWD 4,045,836 0.76

59,570 DO & CO Restaurants & Catering AG TUR TRY 3,937,898 0.74751,470 Fortuna Entertainment Group NV POL CZK 2,511,437 0.47

10,495,171 1.97

Household Durables316,329 Fabryki Mebli Forte SA POL PLN 5,743,192 1.08

84,658 Amica SA POL PLN 3,769,769 0.71

9,512,961 1.79

Independent Power and Renewable Electricity Producers2,156,000 The Hub Power Co. Ltd. PAK PKR 2,551,052 0.48

Industrial Conglomerates13,407,176 Hemas Holdings PLC LKA LKR 8,860,550 1.6621,394,300 Chongqing Machinery & Electric Co. Ltd., H CHN HKD 2,483,058 0.47

11,343,608 2.13

Insurance244,230,546 Panin Financial Tbk PT IDN IDR 3,118,030 0.59

Internet & Direct Marketing Retail31,100 GS Home Shopping Inc. KOR KRW 4,430,878 0.83

Internet Software & Services648,305 PChome Online Inc. TWN TWD 5,653,155 1.06285,398 Mail.ru Group Ltd., GDR, Reg S RUS USD 5,237,053 0.99

47,470 Sohu.com Inc. CHN USD 1,608,758 0.30

12,498,966 2.35


100,549 Luxoft Holding Inc. RUS USD 5,650,854 1.06

13,753,243 2.58

Leisure products1,688,300 Merida Industry Co. Ltd. TWN TWD 7,490,955 1.41

Machinery1,338,000 Shin Zu Shing Co. Ltd. TWN TWD 3,405,346 0.643,723,199 Marcopolo SA, pfd. BRA BRL 3,134,410 0.59

6,539,756 1.23

Media4,289,200 Major Cineplex Group PCL, fgn. THA THB 3,918,307 0.74

57,647 KT Skylife Co. Ltd. KOR KRW 826,083 0.15

4,744,390 0.89






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


Oil, Gas & Consumable Fuels529,550 Great Eastern Shipping Co. Ltd. IND INR 2,828,364 0.53

Personal Products972,700 Mandom Indonesia Tbk PT IDN IDR 902,487 0.17

Pharmaceuticals231,610 Richter Gedeon Nyrt HUN HUF 4,893,335 0.92

1,273,700 TTY Biopharm Co. Ltd. TWN TWD 4,022,686 0.76145,494 Bukwang Pharmaceutical Co. Ltd. KOR KRW 3,181,632 0.60543,557 Egyptian International Pharmaceuticals EIPICO EGY EGP 2,623,345 0.49

1,867,447 Selcuk Ecza Deposu Ticaret ve Sanayi AS TUR TRY 1,625,156 0.30

16,346,154 3.07

Professional Services955,375 Work Service SA POL PLN 2,327,956 0.44

Real Estate Management & Development1,882,888 Vingroup JSC VNM VND 3,472,895 0.65

Road & Rail202,987 Prime Car Management SA POL PLN 1,600,232 0.30

Semiconductors & Semiconductor Equipment1,339,000 Novatek Microelectronics Corp. Ltd. TWN TWD 4,393,951 0.82

187,600 Silicon Works Co. Ltd. KOR KRW 4,319,949 0.8113,044,000 Xinyi Solar Holdings Ltd. CHN HKD 4,238,943 0.80

12,952,843 2.43

Specialty Retail2,837,200 Luk Fook Holdings (International) Ltd. HKG HKD 7,409,027 1.397,832,000 I.T Ltd. HKG HKD 3,120,882 0.596,619,200 Sa Sa International Holdings Ltd. HKG HKD 2,629,072 0.49

40,324,800 Bonjour Holdings Ltd. HKG HKD 1,820,063 0.34272,100 Cia Hering BRA BRL 1,264,065 0.24

16,243,109 3.05

Technology Hardware, Storage & Peripherals1,862,360 ADLINK Technology Inc. TWN TWD 3,506,145 0.662,551,700 Primax Electronics Ltd. TWN TWD 3,467,315 0.65

6,973,460 1.31

Textiles, Apparel & Luxury Goods498,133 Vardhman Textiles Ltd. IND INR 8,150,655 1.53133,895 Fila Korea Ltd. KOR KRW 7,819,058 1.47756,376 Grendene SA BRA BRL 4,085,504 0.77365,000 Eclat Textile Co. Ltd. TWN TWD 3,795,698 0.71

48,467 Youngone Holdings Co. Ltd. KOR KRW 2,388,714 0.45110,392 LF Corp. KOR KRW 1,970,543 0.37

39,850 Youngone Corp. KOR KRW 1,011,719 0.193,317 CCC SA POL PLN 161,294 0.03

29,383,185 5.52


Trading Companies & Distributors9,992,800 Hexindo Adiperkasa Tbk PT IDN IDR 2,262,241 0.43

185,860 iMarketkorea Inc. KOR KRW 1,601,107 0.30

3,863,348 0.73

Transportation Infrastructure4,469,375 COSCO Shipping Ports Ltd. CHN HKD 4,489,835 0.842,145,000 International Container Terminal Services Inc. PHL PHP 3,111,579 0.59

7,601,414 1.43

Wireless Telecommunication Services2,491,100 Global Telecom Holding SAE, GDR, Reg S EGY USD 4,633,446 0.87

TOTAL SHARES 497,289,263 93.42







Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


632,243 National Gulf Holding ** KWT KWD 197,108 0.04










Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


265,090 Zodiac Aerospace FRA EUR 5,782,938 1.75

Air Freight & Logistics904,810 CTT-Correios de Portugal SA PRT EUR 5,831,501 1.76

41,640 Deutsche Post AG DEU EUR 1,300,625 0.40

7,132,126 2.16


Auto Components435,580 ElringKlinger AG DEU EUR 6,914,832 2.09

29,534 Cie Generale des Etablissements Michelin, B FRA EUR 3,121,744 0.94

10,036,576 3.03

Banks144,550 BNP Paribas SA FRA EUR 8,752,503 2.65186,940 Societe Generale SA FRA EUR 8,738,510 2.64557,092 ING Groep NV NLD EUR 7,448,320 2.25575,640 Credit Agricole SA FRA EUR 6,781,039 2.05

2,008,325 UniCredit SpA ITA EUR 5,490,761 1.66

37,211,133 11.25

Biotechnology19,940 Basilea Pharmaceutica AG CHE CHF 1,360,272 0.41

Building Products132,420 Compagnie de Saint-Gobain FRA EUR 5,860,247 1.77

Capital Markets95,030 Flow Traders, Reg S NLD EUR 3,110,807 0.9489,168 Flow Traders NLD EUR 2,918,914 0.8817,120 Deutsche Boerse AG DEU EUR 1,327,485 0.40

7,357,206 2.22

Chemicals129,790 LANXESS AG DEU EUR 8,092,407 2.45104,090 Akzo Nobel NV NLD EUR 6,181,905 1.87

14,274,312 4.32

Construction & Engineering355,440 Arcadis NV NLD EUR 4,738,015 1.43488,310 Koninklijke BAM Groep NV NLD EUR 2,143,681 0.65

6,881,696 2.08

Construction Materials71,050 HeidelbergCement AG DEU EUR 6,297,161 1.90

161,365 CRH PLC IRL EUR 5,317,784 1.61

11,614,945 3.51

Diversified Telecommunication Services1,708,030 Telefonica Deutschland Holding AG DEU EUR 6,951,682 2.10

495,167 Telefonica SA ESP EUR 4,367,373 1.32

11,319,055 3.42

Electric Utilities190,360 DONG Energy AS, Reg S DNK DKK 6,853,216 2.07

Electrical Equipment122,040 ABB Ltd. CHE CHF 2,446,357 0.74

Electronic Equipment, Instruments & Components212,350 Jenoptik AG DEU EUR 3,487,849 1.05

Energy Equipment & Services207,154 Tecnicas Reunidas SA ESP EUR 8,071,756 2.44427,116 Tenaris SA ITA EUR 7,248,158 2.19318,790 Subsea 7 SA GBR NOK 3,833,214 1.16

46,590 Technip SA FRA EUR 3,159,268 0.95128,188 SBM Offshore NV NLD EUR 1,911,924 0.58

24,224,320 7.32

Health Care Equipment & Supplies115,168 LivaNova PLC GBR USD 4,922,168 1.49138,460 Getinge AB, B SWE SEK 2,110,552 0.64

7,032,720 2.13

Hotels, Restaurants & Leisure682,471 Melia Hotels International SA ESP EUR 7,561,779 2.29

Household Durables18,940 SEB SA FRA EUR 2,438,525 0.74


— Templeton Euroland Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Industrial Conglomerates18,760 Siemens AG DEU EUR 2,191,168 0.66

Insurance1,624,290 Aegon NV NLD EUR 8,491,788 2.57

254,495 AXA SA FRA EUR 6,104,063 1.85268,320 ASR Nederland NV NLD EUR 6,064,032 1.83647,060 UNIQA Insurance Group AG AUT EUR 4,658,832 1.41

91,940 NN Group NV NLD EUR 2,960,008 0.89

28,278,723 8.55

IT Services646,354 Indra Sistemas SA ESP EUR 6,728,545 2.03

Life Sciences Tools & Services163,910 MorphoSys AG DEU EUR 7,990,612 2.41229,250 QIAGEN NV NLD EUR 6,116,390 1.85

78,080 Gerresheimer AG DEU EUR 5,514,010 1.67

19,621,012 5.93

Media78,380 Ipsos FRA EUR 2,339,251 0.71

134,558 Atresmedia Corp. de Medios de Comunicacion SA ESP EUR 1,398,058 0.42

3,737,309 1.13


Oil, Gas & Consumable Fuels495,979 Eni SpA ITA EUR 7,672,795 2.32140,470 Total SA, B FRA EUR 6,843,698 2.07480,420 Galp Energia SGPS SA, B PRT EUR 6,817,160 2.06252,470 Royal Dutch Shell PLC, A GBR EUR 6,560,433 1.98

27,894,086 8.43

Personal Products276,750 Ontex Group NV BEL EUR 7,818,188 2.36

Pharmaceuticals82,740 Bayer AG DEU EUR 8,202,016 2.4873,526 Merck KGaA DEU EUR 7,290,103 2.20

113,570 UCB SA BEL EUR 6,917,549 2.0984,785 Sanofi FRA EUR 6,519,966 1.9715,020 Roche Holding AG CHE CHF 3,260,341 0.9976,780 H. Lundbeck A/S DNK DKK 2,967,675 0.90

35,157,650 10.63

Semiconductors & Semiconductor Equipment173,550 Infineon Technologies AG DEU EUR 2,865,311 0.87

Software62,510 SAP SE DEU EUR 5,176,453 1.57

TOTAL SHARES 323,058,355 97.66




— Templeton Euroland Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


530,100 BAE Systems PLC GBR GBP 3,670,896 1.6669,700 Zodiac Aerospace FRA EUR 1,520,506 0.68

5,191,402 2.34


Auto Components26,496 Cie Generale des Etablissements Michelin, B FRA EUR 2,800,627 1.2792,600 ElringKlinger AG DEU EUR 1,470,025 0.66

4,270,652 1.93

Banks855,000 HSBC Holdings PLC GBR GBP 6,575,442 2.97

92,600 BNP Paribas SA FRA EUR 5,606,930 2.53459,800 Credit Agricole SA FRA EUR 5,416,444 2.45351,018 ING Groep NV NLD EUR 4,693,111 2.12

1,746,963 Barclays PLC GBR GBP 4,570,078 2.061,114,100 UniCredit SpA ITA EUR 3,045,949 1.38

260,800 Standard Chartered PLC GBR GBP 2,026,159 0.9135,500 Societe Generale SA FRA EUR 1,659,448 0.75

33,593,561 15.17

Biotechnology48,500 Basilea Pharmaceutica AG CHE CHF 3,308,586 1.49


Capital Markets624,800 Aberdeen Asset Management PLC GBR GBP 1,882,090 0.85

89,400 UBS Group AG CHE CHF 1,330,704 0.6039,700 Flow Traders, Reg S NLD EUR 1,299,580 0.59

1,300 Deutsche Boerse AG DEU EUR 100,802 0.04

4,613,176 2.08

Chemicals74,600 LANXESS AG DEU EUR 4,651,310 2.1041,400 Akzo Nobel NV NLD EUR 2,458,746 1.1118,322 Johnson Matthey PLC GBR GBP 682,547 0.31

7,792,603 3.52

Construction & Engineering352,800 Koninklijke BAM Groep NV NLD EUR 1,548,792 0.70479,700 Carillion PLC GBR GBP 1,325,944 0.60

2,874,736 1.30

Construction Materials120,057 CRH PLC IRL EUR 3,956,479 1.78

38,400 HeidelbergCement AG DEU EUR 3,403,392 1.54

7,359,871 3.32

Diversified Telecommunication Services503,519 Telefonica SA ESP EUR 4,441,038 2.01208,317 Telenor ASA NOR NOK 2,956,328 1.33

7,397,366 3.34



Electronic Equipment, Instruments & Components192,800 Oxford Instruments PLC GBR GBP 1,652,257 0.75

Energy Equipment & Services33,000 Technip SA FRA EUR 2,237,730 1.01

137,600 SBM Offshore NV NLD EUR 2,052,304 0.93167,100 Subsea 7 SA GBR NOK 2,009,254 0.91

48,900 Tecnicas Reunidas SA ESP EUR 1,905,389 0.86107,200 Tenaris SA ITA EUR 1,819,184 0.82

94,400 Petrofac Ltd. GBR GBP 960,398 0.43

10,984,259 4.96

Health Care Equipment & Supplies235,500 Getinge AB, B SWE SEK 3,589,737 1.62

83,619 LivaNova PLC GBR USD 3,573,794 1.61

7,163,531 3.23

Hotels, Restaurants & Leisure98,600 Melia Hotels International SA ESP EUR 1,092,488 0.49


— Templeton European Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


Insurance224,600 ASR Nederland NV NLD EUR 5,075,960 2.29960,400 Aegon NV NLD EUR 5,020,971 2.27180,565 AXA SA FRA EUR 4,330,852 1.96301,900 UNIQA Insurance Group AG AUT EUR 2,173,680 0.98

32,500 NN Group NV NLD EUR 1,046,337 0.47

17,647,800 7.97

IT Services152,500 Indra Sistemas SA ESP EUR 1,587,525 0.72


59,800 Gerresheimer AG DEU EUR 4,223,076 1.9186,600 MorphoSys AG DEU EUR 4,221,750 1.91

13,860,866 6.26

Media309,000 Sky PLC GBR GBP 3,585,021 1.62

73,700 Ipsos FRA EUR 2,199,577 0.99

5,784,598 2.61

Metals & Mining667,400 Glencore PLC CHE GBP 2,167,075 0.98


Oil, Gas & Consumable Fuels959,551 BP PLC GBR GBP 5,724,757 2.59205,302 Royal Dutch Shell PLC, A GBR GBP 5,389,956 2.43376,700 Galp Energia SGPS SA, B PRT EUR 5,345,373 2.41305,700 Eni SpA ITA EUR 4,729,179 2.14

79,200 Total SA, B FRA EUR 3,858,624 1.74114,300 Royal Dutch Shell PLC, A GBR EUR 2,970,085 1.34

28,017,974 12.65

Personal Products90,800 Ontex Group NV BEL EUR 2,565,100 1.16

Pharmaceuticals40,930 Merck KGaA DEU EUR 4,058,210 1.8336,800 Bayer AG DEU EUR 3,647,984 1.6558,400 UCB SA BEL EUR 3,557,144 1.61

1,918,700 Vectura Group PLC GBR GBP 3,079,669 1.3911,800 Roche Holding AG CHE CHF 2,561,386 1.1630,647 Sanofi FRA EUR 2,356,754 1.0641,500 H. Lundbeck A/S DNK DKK 1,604,044 0.7213,100 Novartis AG CHE CHF 905,885 0.41

21,771,076 9.83

Software46,400 SAP SE DEU EUR 3,842,384 1.73

Specialty Retail566,100 Kingfisher PLC GBR GBP 2,321,629 1.05

Technology Hardware, Storage & Peripherals73,200 Logitech International SA CHE USD 1,723,213 0.78


TOTAL SHARES 216,794,447 97.89




— Templeton European Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets



Airlines7,963,500 Kenya Airways Ltd. KEN KES 458,521 0.06

Automobiles1,293,934 Indus Motor Co. Ltd. PAK PKR 19,959,126 2.48

Banks16,929,435 United Bank Ltd. PAK PKR 38,682,644 4.8017,968,268 National Bank of Kuwait SAKP KWT KWD 38,214,096 4.7511,188,300 Habib Bank Ltd. PAK PKR 29,183,374 3.6276,417,233 KCB Group Ltd. KEN KES 21,626,815 2.6917,539,512 Bank Muscat SAOG OMN OMR 21,406,590 2.66

292,313 Banco Macro SA, ADR ARG USD 18,810,342 2.3423,065,139 Brac Bank Ltd. BGD BDT 18,675,044 2.3210,001,218 Hatton National Bank PLC LKA LKR 15,021,856 1.8738,434,650 Islami Bank Bangladesh Ltd. BGD BDT 14,489,880 1.80

286,318,245 Zenith Bank PLC NGA NGN 13,175,225 1.641,957,946 HSBC Bank PLC (CRTP Samba Financial Group, 144A) SAU USD 12,707,496 1.58

139,076,953 Guaranty Trust Bank PLC NGA NGN 10,876,517 1.35561,367 BBVA Banco Frances SA, ADR ARG USD 9,784,627 1.21

8,400,095 Commercial Bank of Ceylon PLC - voting shares LKA LKR 8,130,933 1.0113,820,966 Banca Transilvania ROU RON 7,641,292 0.95

5,778,350 Hatton National Bank PLC LKA LKR 7,329,015 0.91203,042 Grupo Financiero Galicia SA, ADR ARG USD 5,465,891 0.68

3,309,627 Commercial Bank of Ceylon PLC - non-voting shares LKA LKR 2,551,815 0.32345,245 Deutsche Bank AG/London (CRTP Saudi British Bank, 144A) SAU USD 2,300,529 0.28336,362 HSBC Bank PLC (CRTP Saudi British Bank, Reg S) SAU USD 2,241,337 0.28164,570 HSBC Bank PLC (CRTP Savola Al-Azizia United Co., Reg S) SAU USD 1,758,958 0.22

300,074,276 37.28

Beverages10,094,850 East African Breweries Ltd. KEN KES 24,431,764 3.0321,890,615 Delta Corp. Ltd. ZWE USD 19,373,194 2.4127,415,806 Nigerian Breweries PLC NGA NGN 12,866,931 1.60

56,671,889 7.04

Building Products4,097,418 Binh Minh Plastics JSC VNM VND 34,368,576 4.27

Chemicals362,253 Jordan Phosphate Mines JOR JOD 1,094,868 0.14

Diversified Telecommunication Services691,816 Sonatel SEN XOF 27,500,159 3.42

1,122,420 Telecom Argentina SA, B, ADR ARG USD 20,394,371 2.53

47,894,530 5.95

Food Products4,087,524 Vietnam Dairy Products JSC VNM VND 22,545,914 2.80

535,780 Deutsche Bank AG/London (CRTP Saudi Dairy & Foodstuff Co., 144A) SAU USD 17,779,362 2.211,255,543 MHP SA, GDR, Reg S UKR USD 11,036,223 1.37

879,123 Deutsche Bank AG/London (CRTP Savola Al-Azizia United Co., 144A) SAU USD 9,396,245 1.1796,660 HSBC Bank PLC (CRTP Saudi Dairy & Foodstuff Co.) SAU USD 3,207,573 0.40

63,965,317 7.95

Health Care Providers & Services327,438 HSBC Bank PLC (CRTP Mouwasat Medical Services Co., 144A) SAU USD 12,829,411 1.59

Hotels, Restaurants & Leisure3,936,584 Kuwait Food Co. Americana SAK KWT KWD 33,488,592 4.166,380,999 NagaCorp Ltd. KHM HKD 3,678,260 0.46

37,166,852 4.62

Industrial Conglomerates11,747,576 Hemas Holdings PLC LKA LKR 7,763,752 0.9760,874,176 UAC of Nigeria PLC NGA NGN 3,245,207 0.40

1 Industries Qatar QSC QAT QAR 32 0.00

11,008,991 1.37

Marine1,633,069 Vietnam Container Shipping JSC VNM VND 4,016,155 0.50



— Templeton Frontier Markets Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Oil, Gas & Consumable Fuels866,500 YPF Sociedad Anonima, D, ADR ARG USD 14,297,250 1.78

145,134,691 OMV Petrom SA ROU RON 8,781,157 1.09786,967 KazMunaiGas Exploration Production, GDR, Reg S KAZ USD 6,051,776 0.75

29,130,183 3.62

Pharmaceuticals7,547,193 DHG Pharmaceutical JSC VNM VND 32,481,003 4.031,936,011 Egyptian International Pharmaceuticals EIPICO EGY EGP 9,343,682 1.162,456,820 Imexpharm Pharmaceutical JSC VNM VND 6,031,191 0.75

47,855,876 5.94

Wireless Telecommunication Services28,664,493 Mobile Telecommunications Co. KSC KWT KWD 38,453,169 4.7710,726,663 Global Telecom Holding SAE, GDR, Reg S EGY USD 19,951,593 2.48

1,979,493 MTN Group Ltd. ZAF ZAR 18,178,900 2.26

76,583,662 9.51

TOTAL SHARES 765,633,646 95.12

RIGHTSPharmaceuticals

2,456,820 Imexpharm Pharmaceutical JSC, rts., 01/23/17 VNM VND 353,162 0.04




5,233,264 National Gulf Holding ** KWT KWD 1,631,519 0.20






— Templeton Frontier Markets Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


1,353,660 BAE Systems PLC GBR GBP 9,863,299 0.8592,380 Rockwell Collins Inc. USA USD 8,569,169 0.74

18,432,468 1.59


Auto Components98,679 Cie Generale des Etablissements Michelin, B FRA EUR 10,974,835 0.9533,025 Hyundai Mobis Co. Ltd. KOR KRW 7,221,838 0.62

18,196,673 1.57

Automobiles1,890,900 Nissan Motor Co. Ltd. JPN JPY 19,014,953 1.64

174,910 General Motors Co. USA USD 6,093,865 0.52

25,108,818 2.16

Banks293,680 BNP Paribas SA FRA EUR 18,710,561 1.61

2,250,020 HSBC Holdings PLC GBR GBP 18,207,214 1.57291,321 Citigroup Inc. USA USD 17,313,207 1.49

1,040,211 ING Groep NV NLD EUR 14,633,598 1.26166,760 JPMorgan Chase & Co. USA USD 14,389,720 1.24451,644 Hana Financial Group Inc. KOR KRW 11,690,881 1.01

4,224,520 Barclays PLC GBR GBP 11,628,283 1.00692,573 Credit Agricole SA FRA EUR 8,584,384 0.74

1,026,560 Standard Chartered PLC GBR GBP 8,391,673 0.73593,800 United Overseas Bank Ltd. SGP SGD 8,366,268 0.72

1,640,500 Bangkok Bank PCL, NVDR THA THB 7,298,738 0.63515,473 DBS Group Holdings Ltd. SGP SGD 6,173,287 0.53

145,387,814 12.53

Beverages260,600 Suntory Beverage & Food Ltd. JPN JPY 10,823,500 0.93367,000 Kirin Holdings Co. Ltd. JPN JPY 5,969,892 0.52

16,793,392 1.45

Biotechnology208,440 Gilead Sciences Inc. USA USD 14,926,388 1.29

96,260 Amgen Inc. USA USD 14,074,175 1.2154,750 Celgene Corp. USA USD 6,337,313 0.55

35,337,876 3.05


Capital Markets854,460 UBS Group AG CHE CHF 13,382,401 1.15216,890 Morgan Stanley USA USD 9,163,602 0.79

22,546,003 1.94

Chemicals187,730 LANXESS AG DEU EUR 12,315,964 1.06319,140 Chemtura Corp. USA USD 10,595,448 0.92

98,850 Eastman Chemical Co. USA USD 7,434,509 0.64159,920 Johnson Matthey PLC GBR GBP 6,268,459 0.54141,400 Yara International ASA NOR NOK 5,564,996 0.48

42,179,376 3.64



Consumer Finance156,380 Capital One Financial Corp. USA USD 13,642,591 1.18

Diversified Financial Services219,340 Voya Financial Inc. USA USD 8,602,515 0.74


658,495 Telenor ASA NOR NOK 9,832,834 0.85684,313 Telefonica SA ESP EUR 6,350,701 0.55

1,364,900 Singapore Telecommunications Ltd. SGP SGD 3,440,766 0.29

33,772,099 2.91



— Templeton Global Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Electronic Equipment, Instruments & Components726,520 Knowles Corp. USA USD 12,140,149 1.05184,600 Omron Corp. JPN JPY 7,082,690 0.61

19,222,839 1.66

Energy Equipment & Services218,740 Halliburton Co. USA USD 11,831,647 1.02728,250 Subsea 7 SA GBR NOK 9,213,766 0.79764,840 Petrofac Ltd. GBR GBP 8,187,442 0.71

98,320 Baker Hughes Inc. USA USD 6,387,850 0.5585,610 Technip SA FRA EUR 6,108,246 0.53

231,580 SBM Offshore NV NLD EUR 3,634,315 0.31

45,363,266 3.91



11,263,175 0.97



2,770,000 Toshiba Corp. JPN JPY 6,708,474 0.58

15,042,608 1.30

Insurance612,137 AXA SA FRA EUR 15,448,511 1.33191,870 American International Group Inc. USA USD 12,531,030 1.08

1,949,740 Aegon NV NLD EUR 10,725,327 0.923,814,000 China Life Insurance Co. Ltd., H CHN HKD 9,935,238 0.86

404,680 Prudential PLC GBR GBP 8,113,170 0.70

56,753,276 4.89

Internet Software & Services25,290 Alphabet Inc., A USA USD 20,041,060 1.7369,400 Baidu Inc., ADR CHN USD 11,410,054 0.98

257,740 eBay Inc. USA USD 7,652,301 0.66

39,103,415 3.37

Life Sciences Tools & Services316,320 QIAGEN NV NLD EUR 8,879,955 0.77104,080 MorphoSys AG DEU EUR 5,338,757 0.46

14,218,712 1.23


2,498,000 IHI Corp. JPN JPY 6,496,360 0.56

13,573,118 1.17

Media173,470 Comcast Corp., A USA USD 11,978,103 1.03391,750 Twenty-First Century Fox Inc., A USA USD 10,984,670 0.95741,860 Sky PLC GBR GBP 9,056,356 0.78

32,019,129 2.76

Metals & Mining2,344,610 Glencore PLC CHE GBP 8,010,445 0.69

406,870 Allegheny Technologies Inc. USA USD 6,481,439 0.56316,800 Silver Wheaton Corp. CAN CAD 6,119,893 0.53467,000 Sumitomo Metal Mining Co. Ltd. JPN JPY 6,020,522 0.52

26,632,299 2.30

Oil, Gas & Consumable Fuels3,930,950 BP PLC GBR GBP 24,676,570 2.131,098,277 Eni SpA ITA EUR 17,877,240 1.54

986,560 Galp Energia SGPS SA, B PRT EUR 14,730,048 1.27428,630 Royal Dutch Shell PLC, A GBR EUR 11,719,351 1.01219,040 ConocoPhillips USA USD 10,982,666 0.95161,500 Apache Corp. USA USD 10,250,405 0.88218,360 Devon Energy Corp. USA USD 9,972,501 0.86253,500 Suncor Energy Inc. CAN CAD 8,287,645 0.71252,715 Royal Dutch Shell PLC, B GBR GBP 7,328,167 0.63

9,480,000 Kunlun Energy Co. Ltd. CHN HKD 7,090,593 0.61123,769 Total SA, B FRA EUR 6,344,793 0.55552,000 INPEX Corp. JPN JPY 5,529,680 0.48

134,789,659 11.62

Pharmaceuticals511,637 Teva Pharmaceutical Industries Ltd., ADR ISR USD 18,546,841 1.60

69,284 Allergan PLC USA USD 14,550,333 1.25155,330 Eli Lilly & Co. USA USD 11,424,521 0.99138,123 Sanofi FRA EUR 11,176,109 0.96246,040 H. Lundbeck A/S DNK DKK 10,006,270 0.86

95,340 Bayer AG DEU EUR 9,944,399 0.86






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Pharmaceuticals (continued)40,762 Roche Holding AG CHE CHF 9,309,938 0.8086,120 Merck KGaA DEU EUR 8,984,523 0.78

133,140 UCB SA BEL EUR 8,532,876 0.7486,890 Perrigo Co. PLC USA USD 7,231,855 0.62

109,707,665 9.46

Real Estate Management & Development495,000 Mitsui Fudosan Co. Ltd. JPN JPY 11,454,510 0.99

Semiconductors & Semiconductor Equipment55,087,000 GCL-Poly Energy Holdings Ltd. CHN HKD 6,606,604 0.57

124,590 Applied Materials Inc. USA USD 4,020,519 0.35

10,627,123 0.92

Software382,054 Microsoft Corp. USA USD 23,740,836 2.05516,760 Oracle Corp. USA USD 19,869,422 1.71

43,610,258 3.76

Specialty Retail88,190 Tiffany & Co. USA USD 6,828,552 0.59


12,648 Samsung Electronics Co. Ltd. KOR KRW 18,878,941 1.63826,200 Konica Minolta Inc. JPN JPY 8,205,810 0.71

3,972,000 Quanta Computer Inc. TWN TWD 7,379,920 0.63267,080 Hewlett Packard Enterprise Co. USA USD 6,180,231 0.53

63,013,219 5.43

Wireless Telecommunication Services223,700 SoftBank Group Corp. JPN JPY 14,859,750 1.28

4,055,442 Vodafone Group PLC GBR GBP 9,983,900 0.86715,000 China Mobile Ltd. CHN HKD 7,579,212 0.65

32,422,862 2.79

TOTAL SHARES 1,130,127,142 97.44








Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


596,810 BAE Systems PLC GBR GBP 4,132,857 0.5945,740 Rockwell Collins Inc. USA USD 4,032,354 0.58

184,380 Zodiac Aerospace FRA EUR 4,022,250 0.57

12,187,461 1.74



20,524 Hyundai Mobis Co. Ltd. KOR KRW 4,265,487 0.61

15,084,939 2.15

Automobiles202,920 General Motors Co. USA USD 6,719,001 0.96577,700 Nissan Motor Co. Ltd. JPN JPY 5,521,166 0.79

73,490 Toyota Motor Corp. JPN JPY 4,109,568 0.58

16,349,735 2.33

Banks271,082 JPMorgan Chase & Co. USA USD 22,231,198 3.17926,672 ING Groep NV NLD EUR 12,389,605 1.77189,080 Citigroup Inc. USA USD 10,679,552 1.52151,610 BNP Paribas SA FRA EUR 9,179,985 1.31526,810 Credit Agricole SA FRA EUR 6,205,822 0.88727,600 HSBC Holdings PLC GBR HKD 5,551,112 0.79

2,001,839 UniCredit SpA ITA EUR 5,473,028 0.78674,160 Standard Chartered PLC GBR GBP 5,237,559 0.75423,000 DBS Group Holdings Ltd. SGP SGD 4,814,516 0.69

1,806,754 Intesa Sanpaolo SpA ITA EUR 4,383,185 0.63

86,145,562 12.29

Beverages94,900 Suntory Beverage & Food Ltd. JPN JPY 3,745,944 0.53

Biotechnology81,127 Amgen Inc. USA USD 11,273,122 1.6187,160 Gilead Sciences Inc. USA USD 5,931,884 0.8434,210 Celgene Corp. USA USD 3,763,360 0.5453,872 Basilea Pharmaceutica AG CHE CHF 3,675,055 0.5235,380 BioMarin Pharmaceutical Inc. USA USD 2,785,477 0.40

27,428,898 3.91


Capital Markets536,630 UBS Group AG CHE CHF 7,987,649 1.14180,280 Morgan Stanley USA USD 7,238,957 1.03

15,226,606 2.17

Chemicals118,890 LyondellBasell Industries NV, A USA USD 9,692,439 1.38

97,450 LANXESS AG DEU EUR 6,076,008 0.8683,910 Akzo Nobel NV NLD EUR 4,983,415 0.7162,480 Eastman Chemical Co. USA USD 4,465,996 0.6479,380 Chemtura Corp. USA USD 2,504,672 0.36

27,722,530 3.95


Construction Materials104,770 HeidelbergCement AG DEU EUR 9,285,765 1.33219,330 CRH PLC IRL EUR 7,228,020 1.03

16,513,785 2.36

Consumer Finance112,030 Capital One Financial Corp. USA USD 9,288,631 1.32

Diversified Financial Services132,920 Voya Financial Inc. USA USD 4,954,498 0.71


703,758 Telefonica SA ESP EUR 6,207,146 0.88383,548 Telenor ASA NOR NOK 5,443,117 0.78

1,658,382 Singapore Telecommunications Ltd. SGP SGD 3,973,201 0.57

23,070,166 3.29



— Templeton Global (Euro) Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


Electronic Equipment, Instruments & Components177,800 Omron Corp. JPN JPY 6,483,358 0.92232,330 Knowles Corp. USA USD 3,689,635 0.53

10,172,993 1.45

Energy Equipment & Services661,300 Petrofac Ltd. GBR GBP 6,727,874 0.96

74,460 Baker Hughes Inc. USA USD 4,597,668 0.6580,691 Halliburton Co. USA USD 4,148,048 0.5953,350 Technip SA FRA EUR 3,617,664 0.52

266,830 Subsea 7 SA GBR NOK 3,208,434 0.46

22,299,688 3.18



14,446,088 2.06


2,590,000 Haier Electronics Group Co. Ltd. CHN HKD 3,872,644 0.55

10,407,321 1.48

Independent Power and Renewable Electricity Producers4,719,000 China Longyuan Power Group Corp. CHN HKD 3,504,859 0.50



8,534,440 1.22


1,601,600 AIA Group Ltd. HKG HKD 8,587,763 1.22364,140 ASR Nederland NV NLD EUR 8,229,564 1.17

2,358,000 China Life Insurance Co. Ltd., H CHN HKD 5,837,717 0.83731,530 Aegon NV NLD EUR 3,824,439 0.55102,070 Prudential PLC GBR GBP 1,944,817 0.28

41,789,965 5.96


16,145,039 2.30


Machinery56,580 Stanley Black & Decker Inc. USA USD 6,167,231 0.88

2,035,000 IHI Corp. JPN JPY 5,029,720 0.72

11,196,951 1.60

Media195,380 Comcast Corp., A USA USD 12,821,697 1.83501,910 Sky PLC GBR GBP 5,823,165 0.83

18,644,862 2.66


128,670 Allegheny Technologies Inc. USA USD 1,948,026 0.28

11,263,754 1.61


Oil, Gas & Consumable Fuels396,800 Suncor Energy Inc. CAN CAD 12,328,964 1.76

1,958,612 BP PLC GBR GBP 11,685,234 1.67226,674 Total SA, B FRA EUR 11,043,557 1.57138,540 Apache Corp. USA USD 8,356,904 1.19258,460 Royal Dutch Shell PLC, A GBR GBP 6,785,555 0.97442,620 Galp Energia SGPS SA, B PRT EUR 6,280,778 0.89362,081 Eni SpA ITA EUR 5,601,393 0.80

84,990 ConocoPhillips USA USD 4,049,989 0.58449,666 Chesapeake Energy Corp. USA USD 3,000,053 0.43

3,858,000 Kunlun Energy Co. Ltd. CHN HKD 2,742,446 0.3916,240 Chevron Corp. USA USD 1,816,620 0.2637,440 Devon Energy Corp. USA USD 1,625,057 0.23

223,900 Petroleo Brasileiro SA, pfd. BRA BRL 972,200 0.14

76,288,750 10.88






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Pharmaceuticals55,596 Allergan PLC USA USD 11,096,480 1.58

100,888 Merck KGaA DEU EUR 10,003,045 1.4329,802 Roche Holding AG CHE CHF 6,469,019 0.9280,639 Sanofi FRA EUR 6,201,139 0.8860,000 Bayer AG DEU EUR 5,947,800 0.8575,038 Perrigo Co. PLC USA USD 5,935,576 0.85

145,959 Pfizer Inc. USA USD 4,505,558 0.6468,703 Merck & Co. Inc. USA USD 3,843,895 0.5553,140 Eli Lilly & Co. USA USD 3,714,548 0.53

170,432 GlaxoSmithKline PLC GBR GBP 3,116,677 0.4573,632 Teva Pharmaceutical Industries Ltd., ADR ISR USD 2,536,742 0.36

63,370,479 9.04

Semiconductors & Semiconductor Equipment139,020 Applied Materials Inc. USA USD 4,263,615 0.61


6,374,091 0.91


55,965 SAP SE DEU EUR 4,634,462 0.66

27,189,969 3.88



761,100 Konica Minolta Inc. JPN JPY 7,184,221 1.0257,230 Apple Inc. USA USD 6,299,543 0.90

198,580 Hewlett Packard Enterprise Co. USA USD 4,367,175 0.62

32,077,998 4.57


2,445,548 Vodafone Group PLC GBR GBP 5,721,896 0.82

15,703,012 2.24

TOTAL SHARES 689,357,005 98.31








Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


710,635 BAE Systems PLC GBR GBP 5,177,966 0.5743,889 Rockwell Collins Inc. USA USD 4,071,144 0.4581,190 Zodiac Aerospace FRA EUR 1,863,614 0.21

11,112,724 1.23


Auto Components33,972 Hyundai Mobis Co. Ltd. KOR KRW 7,428,926 0.8352,017 Cie Generale des Etablissements Michelin, B FRA EUR 5,785,203 0.64

146,330 Unipres Corp. JPN JPY 2,912,955 0.32

16,127,084 1.79

Automobiles967,012 Nissan Motor Co. Ltd. JPN JPY 9,724,305 1.08

87,905 General Motors Co. USA USD 3,062,610 0.3451,300 Toyota Motor Corp. JPN JPY 3,018,447 0.33

15,805,362 1.75

Banks141,071 JPMorgan Chase & Co. USA USD 12,173,017 1.35190,788 Citigroup Inc. USA USD 11,338,531 1.26

1,369,320 HSBC Holdings PLC GBR HKD 10,992,349 1.22157,901 BNP Paribas SA FRA EUR 10,059,984 1.12606,661 Credit Agricole SA FRA EUR 7,519,512 0.83

2,682,910 Barclays PLC GBR GBP 7,384,895 0.82510,512 United Overseas Bank Ltd. SGP SGD 7,192,793 0.80419,557 ING Groep NV NLD EUR 5,902,291 0.65157,156 KB Financial Group Inc. KOR KRW 5,571,546 0.62632,951 Standard Chartered PLC GBR GBP 5,174,094 0.57184,655 Hana Financial Group Inc. KOR KRW 4,779,826 0.53

1,215,793 UniCredit SpA ITA EUR 3,497,489 0.39

91,586,327 10.16

Beverages176,691 Suntory Beverage & Food Ltd. JPN JPY 7,338,507 0.81


111,971 Gilead Sciences Inc. USA USD 8,018,244 0.8956,893 Ionis Pharmaceuticals Inc. USA USD 2,721,192 0.30

19,837,207 2.20


Capital Markets364,903 UBS Group AG CHE CHF 5,715,046 0.63

75,012 Morgan Stanley USA USD 3,169,257 0.3521,810 Deutsche Boerse AG DEU EUR 1,779,425 0.20

10,663,728 1.18

Chemicals63,723 Eastman Chemical Co. USA USD 4,792,607 0.5369,979 Akzo Nobel NV NLD EUR 4,372,999 0.4933,403 LyondellBasell Industries NV, A USA USD 2,865,309 0.32

12,030,915 1.34




13,068,811 1.45


2,020,017 Singapore Telecommunications Ltd. SGP SGD 5,092,245 0.56305,255 Telenor ASA NOR NOK 4,558,154 0.51415,451 Telefonica SA ESP EUR 3,855,553 0.43

20,900,144 2.32

Electric Utilities1,823,892 Power Grid Corp. of India Ltd. IND INR 4,925,118 0.55



— Templeton Global Balanced Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Electronic Equipment, Instruments & Components276,424 Knowles Corp. USA USD 4,619,045 0.51

79,531 Omron Corp. JPN JPY 3,051,427 0.34

7,670,472 0.85

Energy Equipment & Services409,486 SBM Offshore NV NLD EUR 6,426,294 0.71397,598 Petrofac Ltd. GBR GBP 4,256,198 0.47

76,339 Halliburton Co. USA USD 4,129,177 0.4648,086 Baker Hughes Inc. USA USD 3,124,147 0.35

17,935,816 1.99

Food & Staples Retailing82,971 Walgreens Boots Alliance Inc. USA USD 6,866,680 0.7660,765 CVS Health Corp. USA USD 4,794,966 0.53

797,933 Tesco PLC GBR GBP 2,033,199 0.23

13,694,845 1.52

Health Care Equipment & Supplies339,666 Getinge AB, B SWE SEK 5,447,811 0.61

55,800 Medtronic PLC USA USD 3,974,634 0.44

9,422,445 1.05




7,587,532 0.84

Insurance320,758 AXA SA FRA EUR 8,094,975 0.90119,077 American International Group Inc. USA USD 7,776,919 0.86822,316 Aviva PLC GBR GBP 4,927,086 0.54688,288 Aegon NV NLD EUR 3,786,205 0.42

1,061,000 China Life Insurance Co. Ltd., H CHN HKD 2,763,840 0.31

27,349,025 3.03


13,488,354 1.50


29,900 MorphoSys AG DEU EUR 1,533,713 0.17

6,278,981 0.70


Media131,656 Comcast Corp., A USA USD 9,090,847 1.01541,938 Sky PLC GBR GBP 6,615,781 0.73210,832 Twenty-First Century Fox Inc., A USA USD 5,911,729 0.66

21,618,357 2.40

Metals & Mining365,695 Allegheny Technologies Inc. USA USD 5,825,521 0.65884,203 Glencore PLC CHE GBP 3,020,912 0.33154,500 Silver Wheaton Corp. CAN CAD 2,984,607 0.33209,000 Sumitomo Metal Mining Co. Ltd. JPN JPY 2,694,409 0.30

14,525,449 1.61

Multiline Retail565,090 Marks & Spencer Group PLC GBR GBP 2,436,372 0.27

Oil, Gas & Consumable Fuels1,989,636 BP PLC GBR GBP 12,489,956 1.38

393,991 Royal Dutch Shell PLC, B GBR GBP 11,424,853 1.27506,632 Eni SpA ITA EUR 8,246,719 0.91144,852 Total SA, B FRA EUR 7,425,574 0.82

5,592,200 Kunlun Energy Co. Ltd. CHN HKD 4,182,702 0.4663,768 Apache Corp. USA USD 4,047,355 0.45

845,751 Origin Energy Ltd. AUS AUD 4,021,837 0.45115,252 Suncor Energy Inc. CAN CAD 3,767,920 0.42

73,012 ConocoPhillips USA USD 3,660,822 0.4178,364 Devon Energy Corp. USA USD 3,578,884 0.4029,796 Chevron Corp. USA USD 3,506,989 0.39

7,376 Royal Dutch Shell PLC, A GBR GBP 203,756 0.02

66,557,367 7.38






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


207,912 Teva Pharmaceutical Industries Ltd., ADR ISR USD 7,536,810 0.8434,977 Allergan PLC USA USD 7,345,520 0.8190,582 Sanofi FRA EUR 7,329,368 0.81

164,842 Pfizer Inc. USA USD 5,354,068 0.5947,183 Bayer AG DEU EUR 4,921,403 0.5563,443 Eli Lilly & Co. USA USD 4,666,233 0.5241,103 Merck KGaA DEU EUR 4,288,096 0.4734,237 Perrigo Co. PLC USA USD 2,849,545 0.32

51,922,717 5.76

Semiconductors & Semiconductor Equipment98,579 First Solar Inc. USA USD 3,163,400 0.3584,366 Applied Materials Inc. USA USD 2,722,491 0.30

5,885,891 0.65


34,890 SAP SE DEU EUR 3,040,059 0.34

26,751,828 2.97



63,944 Apple Inc. USA USD 7,405,994 0.82

22,007,022 2.44

Transportation Infrastructure1,860,205 China Merchants Port Holdings Co. Ltd. CHN HKD 4,615,429 0.51


2,263,839 Vodafone Group PLC GBR GBP 5,573,238 0.62896,698 Bharti Airtel Ltd. IND INR 4,033,221 0.45213,761 China Mobile Ltd. CHN HKD 2,265,930 0.25

22,042,516 2.45

TOTAL SHARES 611,095,251 67.79


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETBONDSGovernment and Municipal Bonds

57,360 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 16,982,910 1.882,606,900 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 11,937,794 1.32

688,200,000 Government of India, senior note, 8.83%, 11/25/23 IND INR 11,253,266 1.2534,410 Nota Do Tesouro Nacional, 10.00%, 01/01/25 BRA BRL 9,854,986 1.09

36,233,000 Government of Malaysia, senior bond, 4.24%, 02/07/18 MYS MYR 8,160,583 0.9122,273,000,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 7,707,817 0.85

1,503,900 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 7,058,053 0.78367,900,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 5,659,028 0.63

5,428,400,000 Korea Treasury Bond, senior bond, 4.25%, 06/10/21 KOR KRW 4,957,542 0.555,290,540,000 Korea Treasury Bond, senior note, 2.00%, 03/10/21 KOR KRW 4,417,101 0.49

92,000,000 Inter-American Development Bank, senior bond, 7.50%, 12/05/24 SP MXN 4,403,697 0.49274,700,000 Government of India, senior bond, 7.80%, 05/03/20 IND INR 4,188,339 0.46

10,553,000,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 3,612,873 0.40165,160,000 Government of the Philippines, senior note, 7-56, 3.875%, 11/22/19 PHL PHP 3,356,068 0.37

11,470 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 3,322,615 0.37206,300,000 Government of India, senior note, 8.12%, 12/10/20 IND INR 3,205,375 0.36

39,131,000 Argentine Bonos del Tesoro, 18.20%, 10/03/21 ARG ARS 2,507,941 0.282,862,000,000 Korea Treasury Bond, senior note, 1.375%, 09/10/21 KOR KRW 2,327,784 0.262,145,200,000 Korea Monetary Stabilization Bond, senior note, 1.49%, 02/02/18 KOR KRW 1,775,380 0.20

337,700 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 1,677,182 0.197,334,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 1,634,308 0.18

81,000,000 Government of India, senior bond, 8.35%, 05/14/22 IND INR 1,277,926 0.141,446,500,000 Korea Treasury Bond, senior note, 1.75%, 12/10/18 KOR KRW 1,201,490 0.131,335,100,000 Korea Treasury Bond, senior note, 1.50%, 06/10/19 KOR KRW 1,102,637 0.122,762,000,000 Titulos de Tesoreria, senior bond, B, 10.00%, 07/24/24 COL COP 1,084,743 0.12

51,000,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 769,654 0.091,926,000,000 Titulos de Tesoreria, senior bond, B, 11.00%, 07/24/20 COL COP 729,278 0.081,237,000,000 Titulos de Tesoreria, senior bond, B, 7.00%, 05/04/22 COL COP 418,019 0.05

16,209,000 Government of the Philippines, senior note, 5-72, 2.125%, 05/23/18 PHL PHP 322,632 0.0415,320,000 Government of the Philippines, senior note, 7-51, 5.00%, 08/18/18 PHL PHP 313,267 0.03

994,000,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 297,725 0.03869,000,000 Titulos de Tesoreria, B, 5.00%, 11/21/18 COL COP 283,580 0.03

10,700,000 Government of India, senior note, 7.28%, 06/03/19 IND INR 160,592 0.02302,000,000 Titulos de Tesoreria, senior note, B, 7.00%, 09/11/19 COL COP 102,014 0.01


128,119,391 14.21






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


8,269,000,000 Korea Monetary Stabilization Bond, senior note, 1.56%, 10/02/17 KOR KRW 6,850,745 0.7613,482,900 Mexico Treasury Bill, 0.00%, 05/25/17 MEX MXN 6,342,672 0.7024,340,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 5,430,435 0.6018,975,000 Government of Malaysia, senior bond, 3.814%, 02/15/17 MYS MYR 4,234,183 0.47

8,796,430 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 4,018,801 0.458,110,970 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 3,854,119 0.437,068,280 Mexico Treasury Bill, 0.00%, 05/11/17 MEX MXN 3,334,356 0.376,706,510 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 3,201,925 0.36

3,650,500,000 Korea Treasury Bond, senior note, 2.00%, 12/10/17 KOR KRW 3,035,444 0.3413,260,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 2,959,262 0.33

6,390,000 Mexico Treasury Bill, 0.00%, 09/14/17 MEX MXN 2,947,270 0.333,181,600,000 Korea Monetary Stabilization Bond, senior note, 1.96%, 02/02/17 KOR KRW 2,636,757 0.29

5,275,960 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 2,457,484 0.2710,890,000 Bank of Negara Monetary Note, 0.00%, 04/20/17 MYS MYR 2,403,277 0.27


2,135,700,000 Korea Monetary Stabilization Bond, senior note, 1.70%, 08/02/17 KOR KRW 1,771,137 0.206,988,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 1,567,191 0.176,640,000 Bank of Negara Monetary Note, 0.00%, 06/22/17 MYS MYR 1,456,434 0.166,500,000 Bank of Negara Monetary Note, 0.00%, 09/19/17 MYS MYR 1,417,075 0.162,661,820 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 1,243,030 0.141,536,970 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 732,032 0.081,065,250 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 509,785 0.061,950,000 Malaysia Treasury Bill, 0.00%, 08/11/17 MYS MYR 427,009 0.05

20,260,000 Philippine Treasury Bill, 0.00%, 05/03/17 PHL PHP 406,442 0.041,730,000 Malaysia Treasury Bill, 0.00%, 01/20/17 MYS MYR 385,104 0.041,660,000 Malaysia Treasury Bill, 0.00%, 03/10/17 MYS MYR 367,849 0.049,400,000 Philippine Treasury Bill, 0.00%, 05/17/17 PHL PHP 188,133 0.02

380,430 Mexico Treasury Bill, 0.00%, 04/27/17 MEX MXN 179,903 0.02144,900,000 Korea Monetary Stabilization Bond, senior note, 1.57%, 01/09/17 KOR KRW 120,028 0.01

4,920,000 Philippine Treasury Bill, 0.00%, 06/07/17 PHL PHP 98,475 0.014,340,000 Philippine Treasury Bill, 0.00%, 02/15/17 PHL PHP 87,343 0.01

79,717,800 8.85

TOTAL BONDS 207,837,191 23.06








Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


2,450,000,000 Mahanagar Telephone Nigam Ltd., 8.24%, 11/19/24 IND INR 37,746,222 0.202,250,000,000 Mahanagar Telephone Nigam Ltd., 8.29%, 11/28/24 IND INR 34,760,917 0.191,550,000,000 Food Corp. of India, secured note, 6, 9.95%, 03/07/22 IND INR 25,452,170 0.14

97,959,309 0.53

Government and Municipal Bonds795,407,720,000 Korea Treasury Bond, senior note, 2.00%, 03/10/21 KOR KRW 664,090,360 3.59

126,133,900 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 577,605,791 3.121,500,199 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 434,575,804 2.351,256,288 Nota Do Tesouro Nacional, 10.00%, 01/01/25 BRA BRL 359,799,501 1.95

426,519,000,000 Korea Monetary Stabilization Bond, senior note, 1.45%, 06/02/18 KOR KRW 352,696,963 1.911,402,580 Letra Tesouro Nacional, Strip, 01/01/19 BRA BRL 350,152,436 1.89

4,368,336,000,000 Government of Indonesia, senior bond, FR56, 8.375%, 09/15/26 IDN IDR 333,157,697 1.80407,303,000,000 Korea Treasury Bond, senior note, 1.375%, 09/10/21 KOR KRW 331,276,555 1.79344,550,300,000 Korea Treasury Bond, senior bond, 4.25%, 06/10/21 KOR KRW 314,664,076 1.70

4,971,873,000 Argentine Bonos del Tesoro, senior note, 15.50%, 10/17/26 ARG ARS 301,764,373 1.634,451,577,000 Argentine Bonos del Tesoro, 18.20%, 10/03/21 ARG ARS 285,305,588 1.54

3,552,879,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 270,965,646 1.471,133,170 Letra Tesouro Nacional, Strip, 07/01/19 BRA BRL 268,496,044 1.45

686,835,700,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 237,687,049 1.2947,051,000 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 220,818,176 1.19

962,283 Letra Tesouro Nacional, Strip, 07/01/20 BRA BRL 203,679,835 1.10645,000 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 190,968,910 1.03

2,310,430,000,000 Government of Indonesia, senior bond, FR46, 9.50%, 07/15/23 IDN IDR 186,069,094 1.01175,050,000 Government of Portugal, Reg S, 5.125%, 10/15/24 PRT USD 170,542,462 0.92

488,683,700,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 167,303,357 0.90569,082 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 161,457,587 0.87175,180 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/45 BRA BRL 161,384,195 0.87

9,658,000,000 Government of India, senior note, 8.83%, 11/25/23 IND INR 157,925,086 0.8530,072,300 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 149,353,588 0.81

178,026,800,000 Korea Treasury Bond, senior note, 1.50%, 06/10/19 KOR KRW 147,029,397 0.791,646,800,000,000 Government of Indonesia, senior bond, FR40, 11.00%, 09/15/25 IDN IDR 144,236,295 0.78

144,417 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 131,732,151 0.718,513,700,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 130,957,497 0.71

1,654,103,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 125,845,645 0.68129,335,000 Government of Ukraine, Reg S, 7.75%, 09/01/22 UKR USD 125,454,950 0.68129,295,000 Government of Ukraine, Reg S, 7.75%, 09/01/23 UKR USD 124,123,200 0.67129,255,000 Government of Ukraine, Reg S, 7.75%, 09/01/24 UKR USD 122,792,250 0.66129,215,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 121,640,417 0.66129,155,000 Government of Ukraine, Reg S, 7.75%, 09/01/26 UKR USD 121,405,700 0.66488,756,000 Government of Malaysia, senior bond, 4.24%, 02/07/18 MYS MYR 110,080,141 0.59

126,692,400,000 Korea Monetary Stabilization Bond, senior note, 1.49%, 02/02/18 KOR KRW 104,851,340 0.57335,840 Nota Do Tesouro Nacional, senior note, 10.00%, 01/01/19 BRA BRL 101,628,360 0.55

238,330,000,000 Titulos de Tesoreria, senior bond, B, 10.00%, 07/24/24 COL COP 93,601,295 0.51111,449,600,000 Korea Treasury Bond, senior note, 1.75%, 12/10/18 KOR KRW 92,572,155 0.50300,488,600,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 90,002,946 0.49

272,260,000 Government of Peru, senior bond, 7.84%, 08/12/20 PER PEN 88,313,932 0.4894,115,000 Government of Ukraine, Reg S, 7.75%, 09/01/27 UKR USD 87,923,174 0.48

386,818,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 86,198,502 0.471,800,600,000 Inter-American Development Bank, senior bond, 7.50%, 12/05/24 SP MXN 86,188,008 0.47

1,066,194,000,000 Government of Indonesia, senior bond, 9.00%, 03/15/29 IDN IDR 84,084,750 0.451,371,682,000 Argentine Bonos del Tesoro, 16.00%, 10/17/23 ARG ARS 82,987,952 0.45

89,147 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/22 BRA BRL 80,748,709 0.44264,404,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRN

thereafter, 05/31/40 UKR USD 80,643,220 0.44975,674,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 80,566,866 0.44930,100,000,000 Government of Indonesia, 8.375%, 03/15/34 IDN IDR 69,554,738 0.38

9,962,660,000 Government of Sri Lanka, 10.60%, 07/01/19 LKA LKR 65,098,468 0.353,910,600,000 Government of India, senior note, 8.12%, 12/10/20 IND INR 60,760,728 0.333,855,000,000 Government of India, senior bond, 7.80%, 05/03/20 IND INR 58,777,013 0.32

639,990,000,000 Government of Indonesia, senior bond, FR42, 10.25%, 07/15/27 IDN IDR 54,617,323 0.30601,537,000,000 Government of Indonesia, FR34, 12.80%, 06/15/21 IDN IDR 53,158,306 0.29

3,415,000,000 Government of India, senior note, 8.27%, 06/09/20 IND INR 53,027,504 0.29629,973,000,000 Government of Indonesia, senior bond, FR47, 10.00%, 02/15/28 IDN IDR 52,838,733 0.29667,687,000,000 Government of Indonesia, senior note, FR69, 7.875%, 04/15/19 IDN IDR 50,079,596 0.27

2,898,000,000 Government of India, senior bond, 9.15%, 11/14/24 IND INR 48,716,191 0.2650,858 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/19 BRA BRL 46,254,867 0.25

2,266,170,000 Government of the Philippines, senior note, 7-56, 3.875%, 11/22/19 PHL PHP 46,048,810 0.25456,738,000,000 Government of Indonesia, FR35, 12.90%, 06/15/22 IDN IDR 41,614,084 0.22

6,324,870,000 Government of Sri Lanka, A, 11.00%, 08/01/21 LKA LKR 40,680,778 0.22453,515,000,000 Government of Indonesia, FR36, 11.50%, 09/15/19 IDN IDR 36,955,940 0.20

6,045,720,000 Government of Sri Lanka, A, 9.00%, 05/01/21 LKA LKR 36,286,024 0.20415,871,000 Government of South Africa, R186, 10.50%, 12/21/26 ZAF ZAR 33,402,930 0.18

436,318,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 31,657,140 0.1768,795,000,000 Titulos de Tesoreria, senior bond, B, 11.00%, 07/24/20 COL COP 26,049,172 0.14

357,293,000,000 Government of Indonesia, senior bond, FR63, 5.625%, 05/15/23 IDN IDR 23,709,034 0.134,620,389 Mexican Udibonos, Index Linked, 4.00%, 06/13/19 MEX MXN 23,217,368 0.13

3,272,660,000 Government of Sri Lanka, A, 8.00%, 11/15/18 LKA LKR 20,539,437 0.11


— Templeton Global Bond Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)59,420,000,000 Titulos de Tesoreria, senior bond, B, 7.00%, 05/04/22 COL COP 20,079,783 0.11

249,950,000,000 Government of Indonesia, FR48, 9.00%, 09/15/18 IDN IDR 19,073,385 0.102,882,310,000 Government of Sri Lanka, D, 8.50%, 06/01/18 LKA LKR 18,634,769 0.101,137,400,000 Government of India, senior bond, 8.35%, 05/14/22 IND INR 17,944,610 0.10

269,120,000 Government of South Africa, 8.00%, 01/31/30 ZAF ZAR 17,635,743 0.103,645,080 Mexican Udibonos, Index Linked, 2.50%, 12/10/20 MEX MXN 17,625,795 0.09

18,220 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/24 BRA BRL 16,578,826 0.0915,585,000 Government of Ukraine, Reg S, 7.75%, 09/01/21 UKR USD 15,273,300 0.08

181,396,000,000 Government of Indonesia, FR43, 10.25%, 07/15/22 IDN IDR 14,978,884 0.0838,710,000,000 Titulos de Tesoreria, senior bond, B, 11.25%, 10/24/18 COL COP 13,936,630 0.08

1,927,820,000 Government of Sri Lanka, B, 8.50%, 07/15/18 LKA LKR 12,390,233 0.07188,580,000 Government of South Africa, 8.25%, 03/31/32 ZAF ZAR 12,376,804 0.07

132,795,000,000 Government of Indonesia, senior bond, FR39, 11.75%, 08/15/23 IDN IDR 11,828,090 0.06168,110,000 Government of South Africa, 8.875%, 02/28/35 ZAF ZAR 11,496,124 0.06576,973,000 Government of the Philippines, senior note, 5-72, 2.125%, 05/23/18 PHL PHP 11,484,360 0.06715,100,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 10,791,762 0.06

126,260,000,000 Government of Indonesia, senior bond, FR44, 10.00%, 09/15/24 IDN IDR 10,416,816 0.0630,528,000,000 Titulos de Tesoreria, senior note, B, 7.00%, 09/11/19 COL COP 10,312,148 0.0610,967,000,000 Korea Treasury Bond, senior note, 2.75%, 09/10/19 KOR KRW 9,340,012 0.05

101,450,000,000 Government of Indonesia, FR45, 9.75%, 05/15/37 IDN IDR 8,497,777 0.0521,594,000,000 Titulos de Tesoreria, B, 5.00%, 11/21/18 COL COP 7,046,751 0.04

5,280,000 Government of Korea, senior bond, 5.625%, 11/03/25 KOR USD 6,385,870 0.0317,991,000,000 Government of Colombia, senior bond, 7.75%, 04/14/21 COL COP 6,262,462 0.0387,252,000,000 Government of Indonesia, senior bond, FR59, 7.00%, 05/15/27 IDN IDR 6,136,294 0.03

813,090,000 Government of Sri Lanka, 11.20%, 07/01/22 LKA LKR 5,225,759 0.0381,992,000,000 Government of Indonesia, 6.125%, 05/15/28 IDN IDR 5,142,571 0.0358,658,000,000 Government of Indonesia, senior bond, 8.75%, 05/15/31 IDN IDR 4,560,718 0.02

208,490,000 Government of the Philippines, senior note, 7-51, 5.00%, 08/18/18 PHL PHP 4,263,252 0.0255,130,000 Government of South Africa, 7.00%, 02/28/31 ZAF ZAR 3,282,455 0.02

445,570,000 Government of Sri Lanka, 8.00%, 11/01/19 LKA LKR 2,706,183 0.01149,800,000 Government of India, senior note, 7.28%, 06/03/19 IND INR 2,248,282 0.01

96,540,000 Government of the Philippines, senior note, 3.375%, 08/20/20 PHL PHP 1,919,475 0.014,346,000,000 Government of Colombia, senior bond, 9.85%, 06/28/27 COL COP 1,710,025 0.012,728,000,000 Government of Colombia, senior bond, 4.375%, 03/21/23 COL COP 796,140 0.004,760,000,000 Government of Indonesia, FR52, 10.50%, 08/15/30 IDN IDR 416,787 0.00

8,120,000 Government of the Philippines, senior note, 5.875%, 01/31/18 PHL PHP 168,384 0.001,850,000,000 Government of Indonesia, FR32, 15.00%, 07/15/18 IDN IDR 152,595 0.00

10,809,513,063 58.46


2,790,129,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 622,498,554 3.37940,631,360 Mexico Treasury Bill, 0.00%, 05/25/17 MEX MXN 442,495,020 2.39820,209,960 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 389,742,129 2.11

1,320,129,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 294,615,949 1.59597,488,530 Mexico Treasury Bill, 0.00%, 04/12/17 MEX MXN 283,285,517 1.53255,000,000 FHLB, 0.00%, 01/04/17 USA USD 254,997,450 1.38

281,687,600,000 Korea Treasury Bond, senior note, 2.00%, 12/10/17 KOR KRW 234,227,324 1.27275,897,900,000 Korea Monetary Stabilization Bond, senior note, 1.56%, 10/02/17 KOR KRW 228,577,354 1.24

444,883,660 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 203,252,789 1.10422,814,670 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 196,942,408 1.07

187,896,900,000 Korea Monetary Stabilization Bond, senior note, 1.96%, 02/02/17 KOR KRW 155,719,932 0.84150,000,000 FHLB, 0.00%, 01/03/17 USA USD 150,000,000 0.81136,500,000 FHLB, 0.00%, 01/06/17 USA USD 136,495,768 0.74545,441,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 122,325,418 0.66529,833,000 Government of Malaysia, senior bond, 3.814%, 02/15/17 MYS MYR 118,229,766 0.64116,250,000 FHLB, 0.00%, 01/05/17 USA USD 116,247,559 0.63242,183,270 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 113,095,943 0.61

19,350,400 Government of Mexico, 7.75%, 12/14/17 MEX MXN 94,553,430 0.51174,375,410 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 83,252,990 0.45154,487,420 Mexico Treasury Bill, 0.00%, 05/11/17 MEX MXN 72,877,146 0.39325,010,000 Bank of Negara Monetary Note, 0.00%, 06/22/17 MYS MYR 71,288,473 0.39140,477,320 Mexico Treasury Bill, 0.00%, 09/14/17 MEX MXN 64,792,590 0.35291,150,000 Bank of Negara Monetary Note, 0.00%, 09/19/17 MYS MYR 63,474,075 0.34131,747,060 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 63,048,745 0.34124,821,780 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 59,450,466 0.32232,170,000 Malaysia Treasury Bill, 0.00%, 01/20/17 MYS MYR 51,681,891 0.28189,390,000 Malaysia Treasury Bill, 0.00%, 08/11/17 MYS MYR 41,472,441 0.22

68,649,570 Mexico Treasury Bill, 0.00%, 04/27/17 MEX MXN 32,463,870 0.1891,940,000 Malaysia Treasury Bill, 0.00%, 03/10/17 MYS MYR 20,373,543 0.11

3,303,441 Mexican Udibonos, Index Linked, 3.50%, 12/14/17 MEX MXN 16,311,294 0.0913,225,800,000 Korea Monetary Stabilization Bond, senior note, 1.70%, 08/02/17 KOR KRW 10,968,161 0.06

396,380,000 Philippine Treasury Bill, 0.00%, 03/15/17 PHL PHP 7,966,404 0.0492,300,000,000 Government of Indonesia, FR28, 10.00%, 07/15/17 IDN IDR 6,979,449 0.04

335,720,000 Philippine Treasury Bill, 0.00%, 02/22/17 PHL PHP 6,752,869 0.0429,625,000 Bank of Negara Monetary Note, 0.00%, 04/20/17 MYS MYR 6,537,840 0.04

326,440,000 Philippine Treasury Bill, 0.00%, 09/27/17 PHL PHP 6,492,427 0.0420,170,000,000 Colombian Tes Corto Plazo, Strip, 09/12/17 COL COP 6,413,818 0.03

275,780,000 Philippine Treasury Bill, 0.00%, 05/03/17 PHL PHP 5,532,509 0.0315,515,000,000 Colombian Tes Corto Plazo, Strip, 06/13/17 COL COP 5,012,735 0.03






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year (continued)194,740,000 Philippine Treasury Bill, 0.00%, 03/29/17 PHL PHP 3,910,932 0.02182,490,000 Philippine Treasury Bill, 0.00%, 06/07/17 PHL PHP 3,652,585 0.02129,140,000 Philippine Treasury Bill, 0.00%, 02/08/17 PHL PHP 2,599,719 0.01127,900,000 Philippine Treasury Bill, 0.00%, 05/17/17 PHL PHP 2,559,805 0.01125,880,000 Government of the Philippines, senior note, 3-21, 2.875%, 05/22/17 PHL PHP 2,540,597 0.01

6,206,000,000 Colombian Tes Corto Plazo, Strip, 03/14/17 COL COP 2,038,533 0.011,585,000 The Export-Import Bank of Korea, senior note, 4.625%, 02/20/17 KOR EUR 1,675,383 0.01

59,060,000 Philippine Treasury Bill, 0.00%, 02/15/17 PHL PHP 1,188,588 0.0151,690,000 Philippine Treasury Bill, 0.00%, 04/19/17 PHL PHP 1,037,570 0.0140,800,000 Philippine Treasury Bill, 0.00%, 01/18/17 PHL PHP 821,889 0.0028,940,000 Philippine Treasury Bill, 0.00%, 03/08/17 PHL PHP 581,833 0.00

5,786,260,529 31.29

TOTAL BONDS 16,693,732,901 90.28








Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


104,167 Government of Bosnia & Herzegovina, senior bond, B, Reg S, FRN, 0.563%,12/11/21 † BIH DEM 44,871 0.01


19,400,000 Government of Serbia, senior note, Reg S, 4.875%, 02/25/20 SRB USD 18,775,244 5.7518,800,000,000 Korea Treasury Bond, senior bond, 4.25%, 06/10/21 KOR KRW 16,317,518 5.00


16,613,600,000 Korea Treasury Bond, senior note, 1.375%, 09/10/21 KOR KRW 12,842,175 3.9332,700,000,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 10,754,795 3.29

150,000,000 Argentine Bonos del Tesoro, senior note, 15.50%, 10/17/26 ARG ARS 8,652,486 2.651,931,100 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 8,404,390 2.57

28,408 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 7,659,951 2.3525,850 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 7,116,705 2.18

8,674,100,000 Korea Treasury Bond, senior note, 2.00%, 03/10/21 KOR KRW 6,882,774 2.11395,000,000 Government of India, senior note, 8.83%, 11/25/23 IND INR 6,138,507 1.88

1,372,500 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 6,121,813 1.87105,000,000 Inter-American Development Bank, senior bond, 7.50%, 12/05/24 SP MXN 4,776,619 1.46

13,855,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRNthereafter, 05/31/40 UKR USD 4,016,133 1.23

19,612 Letra Tesouro Nacional, Strip, 07/01/20 BRA BRL 3,945,198 1.21211,200,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 3,087,505 0.94

10,613,000,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 3,021,124 0.923,230 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/45 BRA BRL 2,828,009 0.87

2,769,000 Government of Ukraine, Reg S, 7.75%, 09/01/24 UKR USD 2,500,048 0.772,769,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 2,477,363 0.762,769,000 Government of Ukraine, Reg S, 7.75%, 09/01/26 UKR USD 2,473,731 0.762,769,000 Government of Ukraine, Reg S, 7.75%, 09/01/27 UKR USD 2,458,494 0.75

157,600,000 Government of India, senior bond, 7.80%, 05/03/20 IND INR 2,283,711 0.702,480,600,000 Korea Treasury Bond, senior note, 1.50%, 06/10/19 KOR KRW 1,947,051 0.60

30,285,000 Argentine Bonos del Tesoro, 18.20%, 10/03/21 ARG ARS 1,844,700 0.56118,400,000 Government of India, senior note, 8.12%, 12/10/20 IND INR 1,748,369 0.53

356,700 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 1,683,658 0.5217,973,000,000 Government of Indonesia, FR35, 12.90%, 06/15/22 IDN IDR 1,556,309 0.4813,335,000,000 Government of Indonesia, senior note, FR69, 7.875%, 04/15/19 IDN IDR 950,567 0.29

1,097,500,000 Korea Treasury Bond, senior note, 1.75%, 12/10/18 KOR KRW 866,379 0.2646,500,000 Government of India, senior bond, 8.35%, 05/14/22 IND INR 697,229 0.21

8,183,000 Government of South Africa, R186, 10.50%, 12/21/26 ZAF ZAR 624,655 0.197,618,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 552,175 0.17

593 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 514,079 0.1629,200,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 418,803 0.13

1,274,000,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 414,522 0.135,118,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 352,915 0.11

5,300,000 Government of South Africa, 8.00%, 01/31/30 ZAF ZAR 330,085 0.103,990,000,000 Government of Indonesia, senior bond, FR44, 10.00%, 09/15/24 IDN IDR 312,856 0.10

865 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 243,400 0.073,710,000 Government of South Africa, 8.25%, 03/31/32 ZAF ZAR 231,413 0.073,310,000 Government of South Africa, 8.875%, 02/28/35 ZAF ZAR 215,123 0.07


6,100,000 Government of India, senior note, 7.28%, 06/03/19 IND INR 87,010 0.031,090,000 Government of South Africa, 7.00%, 02/28/31 ZAF ZAR 61,679 0.02

673,000,000 Government of Indonesia, FR43, 10.25%, 07/15/22 IDN IDR 52,816 0.0240 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/24 BRA BRL 34,591 0.01


214,155,716 65.58


13,000,000 FHLB, 0.00%, 01/12/17 USA USD 12,353,917 3.7820,559,150 Mexico Treasury Bill, 0.00%, 05/25/17 MEX MXN 9,191,699 2.8117,630,340 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 7,999,761 2.45

9,072,330 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 4,097,065 1.2515,338,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 3,253,197 1.00

4,700,810 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 2,080,960 0.643,276,630 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 1,422,719 0.442,427,960 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 1,077,572 0.331,905,980 Mexico Treasury Bill, 0.00%, 05/11/17 MEX MXN 854,512 0.261,726,030 Mexico Treasury Bill, 0.00%, 09/14/17 MEX MXN 756,605 0.231,659,110 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 751,003 0.231,376,200 Mexico Treasury Bill, 0.00%, 04/12/17 MEX MXN 620,123 0.19

586,000,000 Korea Monetary Stabilization Bond, senior note, 1.56%, 10/02/17 KOR KRW 461,407 0.14354,300,000 Korea Treasury Bond, senior note, 2.00%, 12/10/17 KOR KRW 279,990 0.09

375,330 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 170,707 0.05102,300,000 Korea Monetary Stabilization Bond, senior note, 1.70%, 08/02/17 KOR KRW 80,629 0.03

49,800,000 Korea Monetary Stabilization Bond, senior note, 1.96%, 02/02/17 KOR KRW 39,224 0.01124,000,000 Colombian Tes Corto Plazo, Strip, 09/12/17 COL COP 37,474 0.01

95,000,000 Colombian Tes Corto Plazo, Strip, 06/13/17 COL COP 29,171 0.01


— Templeton Global Bond (Euro) Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Securities Maturing Within One Year (continued)38,000,000 Colombian Tes Corto Plazo, Strip, 03/14/17 COL COP 11,863 0.00

68,521,332 20.98

TOTAL BONDS 282,721,919 86.57





— Templeton Global Bond (Euro) Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


2,100 Letra Tesouro Nacional, Strip, 07/01/17 BRA BRL 608,886 7.671,950 Nota Do Tesouro Nacional, senior note, 10.00%, 01/01/17 BRA BRL 599,021 7.54

1,057,000 Mexico Treasury Bill, 0.00%, 02/02/17 MEX MXN 506,974 6.381,055,000 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 501,308 6.31

5,040,000,000 Government of Indonesia, senior note, 6.25%, 04/15/17 IDN IDR 374,282 4.714,940,000,000 Government of Indonesia, FR28, 10.00%, 07/15/17 IDN IDR 373,548 4.701,145,000,000 Colombian Tes Corto Plazo, Strip, 06/13/17 COL COP 369,938 4.66

13,000,000 Government of Thailand, senior note, 3.25%, 06/16/17 THA THB 365,436 4.601,400,000 Government of Malaysia, senior bond, 3.814%, 02/15/17 MYS MYR 312,403 3.931,400,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 312,350 3.93

670,000 Government of Ghana, 25.40%, 07/31/17 GHA GHS 158,506 2.00650,000 Government of Ghana, 26.00%, 06/05/17 GHA GHS 153,427 1.93146,000 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 68,005 0.86

9,800 Government of Mexico, senior note, M, 5.00%, 06/15/17 MEX MXN 47,001 0.59

4,751,085 59.81

TOTAL BONDS 4,751,085 59.81




— Templeton Global Currency Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


287,629 BAE Systems PLC GBR GBP 2,095,778 1.33


Automobiles359,420 Nissan Motor Co. Ltd. JPN JPY 3,614,340 2.30

26,497 Toyota Motor Corp. JPN JPY 1,559,060 0.99

5,173,400 3.29

Banks749,294 HSBC Holdings PLC GBR GBP 6,063,304 3.86

55,859 JPMorgan Chase & Co. USA USD 4,820,073 3.0767,082 BNP Paribas SA FRA EUR 4,273,841 2.7264,969 Citigroup Inc. USA USD 3,861,108 2.46

290,373 Credit Agricole SA FRA EUR 3,599,149 2.29932,187 Barclays PLC GBR GBP 2,565,909 1.63158,262 United Overseas Bank Ltd. SGP SGD 2,229,812 1.42625,178 UniCredit SpA ITA EUR 1,798,459 1.14

68,076 Hana Financial Group Inc. KOR KRW 1,762,159 1.12110,086 ING Groep NV NLD EUR 1,548,680 0.99

25,100 Sumitomo Mitsui Financial Group Inc. JPN JPY 957,663 0.61

33,480,157 21.31



Capital Markets129,069 AllianceBernstein Holding LP USA USD 3,026,668 1.93123,005 UBS Group AG CHE CHF 1,926,482 1.23

19,345 Deutsche Boerse AG DEU EUR 1,578,312 1.0018,912 Amundi SA, Reg S FRA EUR 989,488 0.63

7,520,950 4.79

Chemicals10,598 LyondellBasell Industries NV, A USA USD 909,096 0.58

493,293 PTT Global Chemical PCL, fgn. THA THB 866,875 0.55

1,775,971 1.13

Construction & Engineering49,446 Arcadis NV NLD EUR 693,521 0.44


Diversified Telecommunication Services1,077,821 Singapore Telecommunications Ltd. SGP SGD 2,717,071 1.73

117,443 Telenor ASA NOR NOK 1,753,692 1.11182,495 Telefonica SA ESP EUR 1,693,627 1.08204,677 Telefonica Deutschland Holding AG DEU EUR 876,520 0.56

7,040,910 4.48

Electronic Equipment, Instruments & Components891,000 Hana Microelectronics PCL, fgn. THA THB 981,716 0.62

Energy Equipment & Services160,000 Petrofac Ltd. GBR GBP 1,712,764 1.09

24,447 Tecnicas Reunidas SA ESP EUR 1,002,302 0.64

2,715,066 1.73



Insurance135,437 AXA SA FRA EUR 3,418,026 2.17418,608 Aviva PLC GBR GBP 2,508,181 1.60379,486 Aegon NV NLD EUR 2,087,515 1.33

8,013,722 5.10

Media158,382 Sky PLC GBR GBP 1,933,470 1.23

Mortgage Real Estate Investment Trusts (REIT’s)220,292 Annaly Capital Management Inc. USA USD 2,196,311 1.40


— Templeton Global Equity Income Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Multiline Retail229,716 Marks & Spencer Group PLC GBR GBP 990,415 0.63

5,901,000 Springland International Holdings Ltd. CHN HKD 974,051 0.62

1,964,466 1.25


Oil, Gas & Consumable Fuels72,968 Total SA, B FRA EUR 3,740,572 2.38

534,215 BP PLC GBR GBP 3,353,539 2.13191,198 Eni SpA ITA EUR 3,112,232 1.98109,505 Royal Dutch Shell PLC, A GBR EUR 2,994,022 1.91

18,581 Chevron Corp. USA USD 2,186,983 1.39365,915 Origin Energy Ltd. AUS AUD 1,740,052 1.11

17,127,400 10.90

Pharmaceuticals17,636 Roche Holding AG CHE CHF 4,028,018 2.5641,713 Sanofi FRA EUR 3,375,173 2.1591,972 Pfizer Inc. USA USD 2,987,250 1.90

100,940 GlaxoSmithKline PLC GBR GBP 1,942,237 1.2317,844 Novartis AG CHE CHF 1,298,351 0.83

13,631,029 8.67


Software33,627 Microsoft Corp. USA USD 2,089,582 1.33


Technology Hardware, Storage & Peripherals689,000 Quanta Computer Inc. TWN TWD 1,280,152 0.81

Trading Companies & Distributors310,449 Seven Group Holdings Ltd. AUS AUD 1,756,317 1.12

Transportation Infrastructure484,833 China Merchants Port Holdings Co. Ltd. CHN HKD 1,202,939 0.77


278,036 China Mobile Ltd. CHN HKD 2,947,264 1.88242,309 Turkcell Iletisim Hizmetleri AS, ADR TUR USD 1,671,932 1.06

7,795,643 4.96

TOTAL SHARES 141,916,862 90.32


TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESBanks

145,800 Royal Bank of Canada into Standard Chartered PLC, 4.00%, cvt. pfd., 144A GBR USD 1,243,441 0.79

Biotechnology825,000 Royal Bank of Canada into Ionis Pharmaceuticals Inc., 6.00%, cvt. pfd., 144A USA USD 1,073,473 0.68

Communications Equipment61,400 The Goldman Sachs Group Inc. into Cisco Systems Inc., 5.70%, cvt. pfd., 144A USA USD 1,855,275 1.18

Electronic Equipment, Instruments & Components1,500,000 Royal Bank of Canada into Knowles Corp., 4.00%, cvt. pfd., Reg S USA USD 1,898,190 1.21

Energy Equipment & Services1,500,000 Royal Bank of Canada into Halliburton Co., 4.00%, cvt. pfd., Reg S USA USD 2,074,410 1.32

Pharmaceuticals4,369 Teva Pharmaceutical Industries Ltd., 7.00%, cvt. pfd. ISR USD 2,818,005 1.79

Software2,500,000 Royal Bank of Canada into Microsoft Corp., 4.82%, cvt. pfd., 144A USA USD 2,551,525 1.63

TOTAL SHARES 13,514,319 8.60




— Templeton Global Equity Income Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


65,000 iShares II PLC - iShares USD High Yield Corporate Bond UCITS ETF, Class USD (Dist) USA USD 6,759,350 3.89



227 Midstates Petroleum Co. Inc. USA USD 4,708 0.00







TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSHARESElectric Utilities

17,125 Vistra Energy Corp. USA USD 265,438 0.15



1,800,000 HCA Inc., senior bond, 5.875%, 05/01/23 USA USD 1,917,000 1.101,300,000 JBS USA LLC/Finance Inc., senior note, 144A, 8.25%, 02/01/20 USA USD 1,339,000 0.771,200,000 International Game Technology PLC, senior secured bond, 144A, 6.50%, 02/15/25 USA USD 1,293,000 0.741,200,000 Fiat Chrysler Automobiles NV, senior note, 4.50%, 04/15/20 USA USD 1,230,000 0.711,144,000 First Quantum Minerals Ltd., senior note, 144A, 7.00%, 02/15/21 CAN USD 1,143,542 0.661,000,000 Sabine Pass Liquefaction LLC, first lien, 5.625%, 02/01/21 USA USD 1,075,000 0.621,000,000 KB Home, senior bond, 7.50%, 09/15/22 USA USD 1,060,000 0.611,000,000 Millicom International Cellular SA, senior note, 144A, 6.625%, 10/15/21 LUX USD 1,053,750 0.611,000,000 CIT Group Inc., senior note, 5.00%, 08/15/22 USA USD 1,045,000 0.601,000,000 Equinix Inc., senior bond, 5.375%, 04/01/23 USA USD 1,042,500 0.601,000,000 Bank of America Corp., junior sub. bond, M, 8.125% to 05/15/18, FRN thereafter,

Perpetual USA USD 1,040,000 0.601,000,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 5.25%, 09/30/22 USA USD 1,037,500 0.601,000,000 First Data Corp., second lien, 144A, 5.75%, 01/15/24 USA USD 1,035,630 0.601,000,000 Allison Transmission Inc., senior note, 144A, 5.00%, 10/01/24 USA USD 1,012,500 0.581,000,000 Sprint Communications Inc., senior note, 6.00%, 11/15/22 USA USD 1,010,000 0.581,000,000 JPMorgan Chase & Co., junior sub. bond, R, 6.00% to 08/01/23, FRN thereafter,

Perpetual USA USD 1,006,250 0.581,000,000 Citigroup Inc., junior sub. bond, M, 6.30% to 05/15/24, FRN thereafter, Perpetual USA USD 992,750 0.57

700,000 Tesco PLC, senior bond, 6.125%, 02/24/22 GBR GBP 980,559 0.56900,000 MPH Acquisition Holdings LLC, senior note, 144A, 7.125%, 06/01/24 USA USD 949,590 0.55800,000 Western Digital Corp., senior note, 144A, 10.50%, 04/01/24 USA USD 948,000 0.54900,000 1011778 BC ULC/New Red Finance Inc., secured note, second lien, 144A, 6.00%,

04/01/22 CAN USD 942,750 0.54900,000 Infor (U.S.) Inc., senior note, 6.50%, 05/15/22 USA USD 940,500 0.54800,000 Ball Corp., senior note, 4.375%, 12/15/23 USA EUR 934,892 0.54900,000 WMG Acquisition Corp., senior note, 144A, 5.625%, 04/15/22 USA USD 934,875 0.54900,000 Florida East Coast Holdings Corp., secured note, first lien, 144A, 6.75%, 05/01/19 USA USD 933,750 0.54900,000 United Rentals North America Inc., senior bond, 5.875%, 09/15/26 USA USD 930,375 0.53900,000 NEW Areva Holding SA, senior note, Reg S, 3.125%, 03/20/23 FRA EUR 914,603 0.53900,000 ROC Finance LLC/ROC Finance 1 Corp., senior secured note, first lien, 144A, 6.75%,

11/15/21 USA USD 913,500 0.52900,000 Plantronics Inc., senior note, 144A, 5.50%, 05/31/23 USA USD 911,250 0.52800,000 The Royal Bank of Scotland PLC, sub. note, 6.934%, 04/09/18 GBR EUR 904,446 0.52800,000 XPO Logistics Inc., senior note, Reg S, 5.75%, 06/15/21 USA EUR 895,978 0.51

1,000,000 InterGen NV, secured bond, 144A, 7.00%, 06/30/23 NLD USD 895,000 0.51900,000 St. Marys Cement Inc., senior bond, 144A, 5.75%, 01/28/27 BRA USD 869,467 0.50800,000 Netflix Inc., senior bond, 5.875%, 02/15/25 USA USD 865,000 0.50

1,000,000 Valeant Pharmaceuticals International, senior note, 144A, 6.375%, 10/15/20 CAN USD 864,060 0.50900,000 Post Holdings Inc., senior bond, 144A, 5.00%, 08/15/26 USA USD 864,000 0.50900,000 CenturyLink Inc., senior bond, 5.625%, 04/01/25 USA USD 858,375 0.49800,000 Cortes NP Acquisition Corp., senior note, 144A, 9.25%, 10/15/24 USA USD 852,000 0.49

1,100,000 iHeartCommunications Inc., senior secured bond, first lien, 9.00%, 03/01/21 USA USD 818,125 0.47800,000 CSC Holdings LLC, senior bond, 144A, 5.50%, 04/15/27 USA USD 812,000 0.47800,000 Clear Channel Worldwide Holdings Inc., senior sub. note, 7.625%, 03/15/20 USA USD 802,496 0.46800,000 DISH DBS Corp., senior bond, 5.00%, 03/15/23 USA USD 798,000 0.46800,000 Martin Midstream Partners LP/Martin Midstream Finance Corp., senior note, 7.25%,

02/15/21 USA USD 794,000 0.46800,000 Sirius XM Radio Inc., senior bond, 144A, 5.375%, 07/15/26 USA USD 784,000 0.45800,000 Tenet Healthcare Corp., senior note, 8.125%, 04/01/22 USA USD 758,800 0.44700,000 Beazer Homes USA Inc., senior note, 144A, 8.75%, 03/15/22 USA USD 757,750 0.44800,000 BMC Software Finance Inc., senior note, 144A, 8.125%, 07/15/21 USA USD 751,500 0.43727,000 Blackboard Inc., secured note, Reg S, 9.75%, 10/15/21 USA USD 748,810 0.43700,000 Novelis Corp., senior note, 144A, 6.25%, 08/15/24 USA USD 743,750 0.43700,000 The Chemours Co., senior note, 6.125%, 05/15/23 USA EUR 736,374 0.42


— Templeton Global High Yield Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)700,000 Rain CII Carbon LLC/CII Carbon Corp., second lien, Reg S, 8.50%, 01/15/21 USA EUR 732,857 0.42700,000 Ferrellgas LP/Ferrellgas Finance Corp., senior note, 6.75%, 06/15/23 USA USD 691,250 0.40700,000 CNH Industrial Capital LLC, senior note, 3.875%, 10/15/21 USA USD 690,375 0.40700,000 CONSOL Energy Inc., senior note, 5.875%, 04/15/22 USA USD 689,500 0.40540,000 Virgin Media Secured Finance PLC, senior secured bond, first lien, Reg S, 5.50%,

01/15/25 GBR GBP 688,488 0.40600,000 Energy Transfer Equity LP, senior note, first lien, 7.50%, 10/15/20 USA USD 672,000 0.39800,000 Endo Finance LLC/Endo Ltd./Endo Finco Inc., senior bond, 144A, 6.00%, 02/01/25 USA USD 670,000 0.39700,000 PulteGroup Inc., senior bond, 5.00%, 01/15/27 USA USD 667,625 0.38600,000 Summit Materials LLC/Summit Materials Finance Corp., senior note, 8.50%,

04/15/22 USA USD 666,000 0.38500,000 AMC Entertainment Holdings Inc., senior note, Reg S, 6.375%, 11/15/24 USA GBP 654,716 0.38600,000 Infor (U.S.) Inc., senior note, 5.75%, 05/15/22 USA EUR 649,868 0.37600,000 Lincoln Finance Ltd., senior secured note, 144A, 7.375%, 04/15/21 NLD USD 641,250 0.37600,000 Owens-Brockway Glass Container Inc., senior note, 144A, 5.875%, 08/15/23 USA USD 626,625 0.36600,000 Cemex Finance LLC, senior secured note, first lien, 144A, 6.00%, 04/01/24 MEX USD 620,325 0.36600,000 Navient Corp., senior note, 7.25%, 09/25/23 USA USD 618,000 0.36600,000 Hanesbrands Inc., senior note, 144A, 4.625%, 05/15/24 USA USD 585,000 0.34600,000 Horizon Pharma Inc., senior note, 6.625%, 05/01/23 USA USD 573,000 0.33500,000 Vizient Inc., senior note, 144A, 10.375%, 03/01/24 USA USD 567,500 0.33600,000 Dynegy Inc., senior bond, 7.625%, 11/01/24 USA USD 556,500 0.32500,000 Qorvo Inc., senior bond, 7.00%, 12/01/25 USA USD 556,250 0.32700,000 Talen Energy Supply LLC, senior note, 6.50%, 06/01/25 USA USD 544,250 0.31500,000 HCA Inc., senior secured bond, first lien, 5.875%, 03/15/22 USA USD 540,000 0.31500,000 Sprint Corp., senior bond, 7.875%, 09/15/23 USA USD 535,000 0.31600,000 Endo Finance LLC/Endo Ltd./Endo Finco Inc., senior note, 144A, 6.00%, 07/15/23 USA USD 529,500 0.30500,000 Envision Healthcare Corp., senior note, 144A, 6.25%, 12/01/24 USA USD 528,750 0.30500,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 5.00%,

10/01/21 NLD USD 526,267 0.30500,000 Wind Acquisition Finance SA, senior note, second lien, 144A, 7.375%, 04/23/21 ITA USD 520,300 0.30500,000 DISH DBS Corp., senior note, 5.875%, 11/15/24 USA USD 516,375 0.30500,000 T-Mobile USA Inc., senior note, 6.542%, 04/28/20 USA USD 515,625 0.30600,000 Digicel Group Ltd., senior note, 144A, 8.25%, 09/30/20 BMU USD 515,100 0.30500,000 Taylor Morrison Communities Inc./Monarch Communities Inc., senior note, 144A,

5.25%, 04/15/21 USA USD 515,000 0.30600,000 24 Hour Holdings III LLC, senior note, 144A, 8.00%, 06/01/22 USA USD 513,000 0.29500,000 Cheniere Corpus Christi Holdings LLC, first lien, senior secured note, 144A, 5.875%,

03/31/25 USA USD 512,030 0.29500,000 Altice U.S. Finance I Corp., senior secured bond, 144A, 5.50%, 05/15/26 USA USD 511,250 0.29500,000 Barminco Finance Pty. Ltd., senior note, 144A, 9.00%, 06/01/18 AUS USD 510,625 0.29500,000 Eldorado Gold Corp., senior note, 144A, 6.125%, 12/15/20 CAN USD 510,000 0.29500,000 Gaz Capital SA, (OJSC Gazprom), loan participation, senior note, Reg S, 3.85%,

02/06/20 RUS USD 508,458 0.29500,000 Taylor Morrison Communities Inc./Monarch Communities Inc., senior note, 144A,

5.625%, 03/01/24 USA USD 507,500 0.29500,000 NRG Yield Operating LLC, senior bond, 5.375%, 08/15/24 USA USD 505,000 0.29500,000 Hughes Satellite Systems Corp., senior bond, 144A, 6.625%, 08/01/26 USA USD 503,750 0.29500,000 AMC Networks Inc., senior note, 5.00%, 04/01/24 USA USD 503,125 0.29600,000 Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note, 7.75%,

04/15/23 USA USD 501,000 0.29700,000 BreitBurn Energy Partners LP/BreitBurn Finance Corp., senior bond, 7.875%,

04/15/22 * USA USD 500,500 0.29500,000 Calpine Corp., senior bond, 5.75%, 01/15/25 USA USD 485,000 0.28500,000 Sanchez Energy Corp., senior note, 6.125%, 01/15/23 USA USD 477,500 0.27400,000 FMG Resources (August 2006) Pty. Ltd., senior secured note, 144A, 9.75%,

03/01/22 AUS USD 466,028 0.27625,368 EnQuest PLC, 144A, PIK, 7.00%, 04/15/22 ‡ GBR USD 456,519 0.26400,000 Ceramtec Group GmbH, senior note, Reg S, 8.25%, 08/15/21 DEU EUR 450,628 0.26990,000 CHC Helicopter SA, senior secured note, first lien, 9.25%, 10/15/20 * CAN USD 445,401 0.26400,000 Matterhorn Telecom SA, senior secured note, Reg S, 3.875%, 05/01/22 CHE EUR 438,761 0.25400,000 Matterhorn Telecom Holding SA, senior note, Reg S, 4.875%, 05/01/23 CHE EUR 427,357 0.25400,000 CommScope Technologies Finance LLC, senior bond, 144A, 6.00%, 06/15/25 USA USD 426,000 0.24400,000 PSPC Escrow Corp., senior note, Reg S, 6.00%, 02/01/23 USA EUR 425,638 0.24400,000 MPT Operating Partnership LP/MPT Finance Corp., senior note, 6.375%, 03/01/24 USA USD 420,500 0.24600,000 CHS/Community Health Systems Inc., senior note, 6.875%, 02/01/22 USA USD 420,000 0.24400,000 Calpine Corp., senior secured bond, first lien, 144A, 5.875%, 01/15/24 USA USD 419,000 0.24400,000 CVR Partners LP/CVR Nitrogen Finance Corp., secured note, second lien, 144A,

9.25%, 06/15/23 USA USD 413,500 0.24400,000 AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, senior note, 4.25%,

07/01/20 NLD USD 411,010 0.24400,000 Acadia Healthcare Co. Inc., senior note, 6.50%, 03/01/24 USA USD 410,000 0.24400,000 Wynn Macau Ltd., senior note, 144A, 5.25%, 10/15/21 MAC USD 405,000 0.23400,000 Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC, 144A, 3.36%, 03/20/23 USA USD 401,748 0.23500,000 Galapagos Holding SA, senior note, Reg S, 7.00%, 06/15/22 LUX EUR 400,788 0.23400,000 Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%,

03/01/25 USA USD 397,800 0.23500,000 Murray Energy Corp., secured note, second lien, 144A, 11.25%, 04/15/21 USA USD 387,500 0.22500,000 CHS/Community Health Systems Inc., senior note, 7.125%, 07/15/20 USA USD 382,650 0.22416,000 California Resources Corp., senior secured note, second lien, 144A, 8.00%,

12/15/22 USA USD 372,320 0.21400,000 Digicel Group Ltd., senior note, 144A, 6.00%, 04/15/21 BMU USD 363,000 0.21






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Corporate Bonds (continued)346,793 Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer

Luxembourg SA, senior note, 8.25%, 02/15/21 USA USD 358,167 0.21500,000 Intelsat Jackson Holdings SA, senior bond, 5.50%, 08/01/23 LUX USD 340,000 0.20300,000 Cheniere Corpus Christi Holdings LLC, senior secured note, 144A, 7.00%, 06/30/24 USA USD 326,250 0.19300,000 Jaguar Holding Co. II/Pharmaceutical Product Development LLC, senior note, 144A,

6.375%, 08/01/23 USA USD 321,750 0.18300,000 T-Mobile USA Inc., senior bond, 6.375%, 03/01/25 USA USD 321,375 0.18300,000 First Data Corp., senior note, 144A, 7.00%, 12/01/23 USA USD 320,250 0.18300,000 T-Mobile USA Inc., senior note, 6.00%, 04/15/24 USA USD 316,875 0.18300,000 Virgin Media Finance PLC, senior bond, 144A, 6.375%, 04/15/23 GBR USD 313,125 0.18300,000 CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, 5.75%, 02/15/26 USA USD 311,250 0.18300,000 TransDigm Inc., senior sub. bond, 144A, 6.375%, 06/15/26 USA USD 309,600 0.18300,000 Crestwood Midstream Partners LP/Crestwood Midstrean Finance Corp., senior note,

6.25%, 04/01/23 USA USD 307,500 0.18300,000 KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, senior note,

144A, 5.00%, 06/01/24 USA USD 307,125 0.18300,000 Navient Corp., senior note, 5.00%, 10/26/20 USA USD 306,750 0.18300,000 Weatherford International Ltd., senior note, 8.25%, 06/15/23 USA USD 306,000 0.18300,000 KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, senior note,

144A, 5.25%, 06/01/26 USA USD 305,250 0.18300,000 Cemex SAB de CV, first lien, 144A, 5.70%, 01/11/25 MEX USD 304,376 0.17300,000 Novelis Corp., senior bond, 144A, 5.875%, 09/30/26 USA USD 303,750 0.17300,000 Lamb Weston Holdings Inc., senior note, 144A, 4.625%, 11/01/24 USA USD 301,500 0.17300,000 Rain CII Carbon LLC/CII Carbon Corp., second lien, 144A, 8.25%, 01/15/21 USA USD 298,500 0.17300,000 ARD Finance SA, senior secured note, 144A, PIK, 7.125%, 09/15/23 ‡ LUX USD 297,750 0.17300,000 Lamb Weston Holdings Inc., senior note, 144A, 4.875%, 11/01/26 USA USD 297,563 0.17300,000 NRG Yield Operating LLC, senior bond, 144A, 5.00%, 09/15/26 USA USD 288,000 0.17243,000 Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, senior secured bond,

first lien, Reg S, 5.75%, 01/15/23 DEU EUR 274,655 0.16300,000 Concordia International Corp., senior secured note, first lien, 144A, 9.00%,

04/01/22 CAN USD 255,375 0.15200,000 Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note, 144A,

11.50%, 01/15/21 USA USD 229,500 0.13200,000 WPX Energy Inc., senior note, 8.25%, 08/01/23 USA USD 224,500 0.13200,000 Sprint Communications Inc., senior note, 144A, 7.00%, 03/01/20 USA USD 217,500 0.13200,000 T-Mobile USA Inc., senior bond, 6.50%, 01/15/24 USA USD 215,000 0.12200,000 Wind Acquisition Finance SA, senior secured note, Reg S, 4.00%, 07/15/20 ITA EUR 214,860 0.12200,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured note, first lien,

144A, 5.45%, 06/15/23 USA USD 212,213 0.12200,000 Navient Corp., senior note, 6.625%, 07/26/21 USA USD 212,000 0.12200,000 HD Supply Inc., senior note, 144A, 5.75%, 04/15/24 USA USD 211,640 0.12200,000 Grinding Media Inc./ MC Grinding Media Canada Inc., senior secured note, 144A,

7.375%, 12/15/23 USA USD 210,620 0.12200,000 HudBay Minerals Inc., senior note, 144A, 7.625%, 01/15/25 CAN USD 208,376 0.12200,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

6.75%, 01/31/21 LUX USD 206,500 0.12200,000 Dole Food Co. Inc., senior secured note, 144A, 7.25%, 05/01/19 USA USD 204,500 0.12200,000 Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., senior note, 144A,

6.00%, 06/30/21 LUX USD 204,250 0.12200,000 Weatherford International Ltd., senior note, 7.75%, 06/15/21 USA USD 202,750 0.12200,000 Galapagos SA, senior secured note, Reg S, 5.375%, 06/15/21 LUX EUR 202,291 0.12200,000 Virgin Media Secured Finance PLC, senior secured bond, first lien, 144A, 5.50%,

08/15/26 GBR USD 200,000 0.11200,000 Nextstar Escrow Corp., senior note, 144A, 5.625%, 08/01/24 USA USD 199,000 0.11200,000 MPT Operating Partnership LP/MPT Finance Corp., senior bond, 5.25%, 08/01/26 USA USD 196,500 0.11200,000 Tenet Healthcare Corp., senior note, 5.00%, 03/01/19 USA USD 196,000 0.11200,000 Weatherford International Ltd., senior note, 5.125%, 09/15/20 USA USD 189,000 0.11400,000 CGG SA, senior note, 6.50%, 06/01/21 FRA USD 186,000 0.11160,000 Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, senior secured bond,

first lien, Reg S, 5.625%, 04/15/23 DEU EUR 181,080 0.10200,000 Stena International SA, senior secured bond, first lien, 144A, 5.75%, 03/01/24 SWE USD 174,590 0.10

1,000,000 Edcon Ltd., senior secured note, first lien, 9.50%, 03/01/18 *,^ ZAF EUR 163,091 0.09500,000 Concordia International Corp., senior note, 144A, 7.00%, 04/15/23 CAN USD 155,000 0.09100,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior note, 144A, 7.125%,

06/15/24 USA USD 111,035 0.06100,000 Platform Specialty Products Corp., senior note, 144A, 10.375%, 05/01/21 USA USD 111,000 0.06100,000 Sprint Communications Inc., senior note, 144A, 9.00%, 11/15/18 USA USD 110,500 0.06100,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior secured bond, first lien,

144A, 6.02%, 06/15/26 USA USD 108,381 0.06100,000 Cloud Crane LLC, secured note, second lien, 144A, 10.125%, 08/01/24 USA USD 107,250 0.06100,000 Diamond 1 Finance Corp./Diamond 2 Finance Corp., senior note, 144A, 5.875%,

06/15/21 USA USD 106,398 0.06100,000 T-Mobile USA Inc., senior note, 6.125%, 01/15/22 USA USD 105,750 0.06100,000 TransDigm Inc., senior sub. bond, 6.50%, 05/15/25 USA USD 105,125 0.06100,000 Post Holdings Inc., senior note, 144A, 6.00%, 12/15/22 USA USD 104,875 0.06100,000 XPO Logistics Inc., senior note, 144A, 6.125%, 09/01/23 USA USD 104,875 0.06100,000 Sprint Corp., senior bond, 7.125%, 06/15/24 USA USD 103,250 0.06100,000 Horizon Pharma Inc./Horizon Pharma USA Inc., senior note, 144A, 8.75%, 11/01/24 USA USD 101,750 0.06200,000 CGG SA, senior note, 6.875%, 01/15/22 FRA USD 93,000 0.05100,000 Weatherford International Ltd., senior note, 4.50%, 04/15/22 USA USD 87,250 0.05100,000 Valeant Pharmaceuticals International Inc., senior note, 144A, 5.625%, 12/01/21 USA USD 78,000 0.04500,000 Energy XXI Gulf Coast Inc., senior note, 6.875%, 03/15/24 * USA USD 75,643 0.04100,000 Valeant Pharmaceuticals International Inc., senior bond, 144A, 6.125%, 04/15/25 USA USD 75,500 0.04






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Corporate Bonds (continued)500,000 Energy XXI Gulf Coast Inc., senior note, 7.50%, 12/15/21 * USA USD 74,545 0.04100,000 iHeartCommunications Inc., senior secured note, first lien, 9.00%, 09/15/22 USA USD 73,875 0.04

17,126 Vistra Energy Corp., Escrow Account USA USD 24,833 0.0125,000 California Resources Corp., senior bond, 6.00%, 11/15/24 USA USD 18,375 0.01

96,825,886 55.64

Government and Municipal Bonds10,202 Letra Tesouro Nacional, Strip, 07/01/20 BRA BRL 2,159,387 1.24

412,600 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 1,889,422 1.096,360 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 1,883,042 1.08

22,290,000 Government of South Africa, R186, 10.50%, 12/21/26 ZAF ZAR 1,790,342 1.034,448,000,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 1,539,279 0.88

1,420,000 Government of Zambia, senior note, Reg S, 8.50%, 04/14/24 ZMB USD 1,398,764 0.801,393,000 Government of Ukraine, Reg S, 7.75%, 09/01/20 UKR USD 1,382,552 0.79

20,482,000 Argentine Bonos del Tesoro, 18.20%, 10/03/21 ARG ARS 1,312,710 0.754,414 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 1,278,642 0.73

5,034,000 Government of Ghana, 24.50%, 10/22/18 GHA GHS 1,246,475 0.721,269,000 Government of Ukraine, Reg S, 7.75%, 09/01/21 UKR USD 1,243,620 0.711,269,000 Government of Ukraine, Reg S, 7.75%, 09/01/22 UKR USD 1,230,930 0.711,269,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 1,194,611 0.691,269,000 Government of Ukraine, Reg S, 7.75%, 09/01/26 UKR USD 1,192,860 0.69

3,398,000,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 1,163,323 0.67190,400 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 893,579 0.51

2,522,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRN thereafter,05/31/40 UKR USD 769,210 0.44

3,200,000 Government of Ghana, 23.23%, 02/19/18 GHA GHS 753,259 0.433,087,000 Government of Malaysia, senior bond, 4.24%, 02/07/18 MYS MYR 695,270 0.40

21,989,819 Government of Uruguay, senior bond, Index Linked, 4.375%, 12/15/28 URY UYU 689,607 0.40700 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/45 BRA BRL 644,873 0.37

7,200,000,000 Government of Indonesia, senior bond, FR47, 10.00%, 02/15/28 IDN IDR 603,897 0.359,633,000 Argentine Bonos del Tesoro, senior note, 15.50%, 10/17/26 ARG ARS 584,668 0.34

63,190,000 Serbia Treasury Note, 10.00%, 04/27/18 SRB RSD 575,839 0.331,829,000,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 547,826 0.326,150,000,000 Government of Indonesia, senior bond, FR44, 10.00%, 09/15/24 IDN IDR 507,393 0.295,280,000,000 Government of Indonesia, FR34, 12.80%, 06/15/21 IDN IDR 466,598 0.27

1,427 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 404,863 0.234,400,000,000 Government of Indonesia, FR35, 12.90%, 06/15/22 IDN IDR 400,891 0.23

12,346,752 Uruguay Notas del Tesoro, 13, Index Linked, 4.00%, 05/25/25 URY UYU 386,989 0.221,620,000 Government of Ghana, 23.47%, 05/21/18 GHA GHS 383,479 0.22

57,600 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 286,069 0.168,698,848 Uruguay Notas del Tesoro, 14, Index Linked, 4.00%, 06/10/20 URY UYU 284,622 0.164,360,000 Argentine Bonos del Tesoro, 16.00%, 10/17/23 ARG ARS 263,784 0.15

27,170,000 Serbia Treasury Note, 10.00%, 03/02/18 SRB RSD 246,005 0.141,020,000 Ghana Treasury Note, 22.50%, 12/10/18 GHA GHS 237,003 0.14

940,000 Government of Ghana, 24.50%, 04/22/19 GHA GHS 233,943 0.133,470,000 Government of South Africa, 8.75%, 01/31/44 ZAF ZAR 230,957 0.13

220,000 Government of Ukraine, Reg S, 7.75%, 09/01/19 UKR USD 221,650 0.13800,000 Government of Ghana, 24.50%, 05/27/19 GHA GHS 198,453 0.11800,000 Ghana Treasury Note, 24.25%, 06/11/18 GHA GHS 191,313 0.11855,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 190,528 0.11

2,370,000 Government of South Africa, 8.875%, 02/28/35 ZAF ZAR 162,071 0.094,680,000 Uruguay Notas del Tesoro, 7, 13.25%, 04/08/18 URY UYU 158,266 0.09

1,810,000,000 Government of Indonesia, senior bond, FR42, 10.25%, 07/15/27 IDN IDR 154,467 0.09391,000,000 Titulos de Tesoreria, senior bond, B, 10.00%, 07/24/24 COL COP 153,561 0.09

1,970,000 Government of South Africa, 9.00%, 01/31/40 ZAF ZAR 134,912 0.081,910,000 Government of South Africa, 8.75%, 02/28/48 ZAF ZAR 127,124 0.07

367 Nota Do Tesouro Nacional, 10.00%, 01/01/25 BRA BRL 105,108 0.061,400,000,000 Government of Indonesia, senior note, FR69, 7.875%, 04/15/19 IDN IDR 105,006 0.06

233,000,000 Titulos de Tesoreria, senior bond, B, 11.25%, 10/24/18 COL COP 83,886 0.0587 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 79,358 0.05

2,350,671 Government of Uruguay, senior bond, Index Linked, 5.00%, 09/14/18 URY UYU 79,214 0.05900,000,000 Government of Indonesia, senior bond, FR40, 11.00%, 09/15/25 IDN IDR 78,827 0.05

350,000 Government of Ghana, 19.04%, 09/24/18 GHA GHS 78,292 0.05900,000,000 Government of Indonesia, FR45, 9.75%, 05/15/37 IDN IDR 75,387 0.04

7,040,000 Serbia Treasury Note, 10.00%, 09/11/21 SRB RSD 70,512 0.04963,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 69,871 0.04

250,000 Government of Ghana, 24.75%, 07/19/21 GHA GHS 67,958 0.04790,000,000 Government of Indonesia, senior bond, FR46, 9.50%, 07/15/23 IDN IDR 63,622 0.04

9,100,000 Government of Sri Lanka, 10.60%, 07/01/19 LKA LKR 59,462 0.03172,000,000 Titulos de Tesoreria, senior bond, B, 7.00%, 05/04/22 COL COP 58,124 0.03

790,000 Government of South Africa, 8.00%, 01/31/30 ZAF ZAR 51,770 0.038,210,000 Government of Sri Lanka, A, 8.00%, 11/15/18 LKA LKR 51,527 0.03

127,000,000 Titulos de Tesoreria, senior bond, B, 11.00%, 07/24/20 COL COP 48,088 0.03139,000,000 Titulos de Tesoreria, senior note, B, 7.00%, 09/11/19 COL COP 46,953 0.03

5,990,000 Government of Sri Lanka, A, 11.00%, 08/01/21 LKA LKR 38,527 0.02109,000,000 Government of Colombia, senior bond, 7.75%, 04/14/21 COL COP 37,942 0.02

5,270,000 Government of Sri Lanka, C, 8.50%, 04/01/18 LKA LKR 34,221 0.02130,000 Government of Ghana, 22.49%, 04/23/18 GHA GHS 30,410 0.02909,156 Government of Uruguay, senior bond, Index Linked, 4.00%, 07/10/30 URY UYU 27,166 0.02

394,000,000 Government of Indonesia, senior bond, FR63, 5.625%, 05/15/23 IDN IDR 26,145 0.02






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Government and Municipal Bonds (continued)321,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 24,482 0.01

2,450,000 Serbia Treasury Note, 10.00%, 03/20/21 SRB RSD 24,266 0.01759,221 Government of Uruguay, Index Linked, 4.25%, 04/05/27 URY UYU 23,864 0.01

24 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/19 BRA BRL 21,828 0.01458,200 Uruguay Notas del Tesoro, senior note, 13.90%, 07/29/20 URY UYU 15,587 0.01

10,000 Government of Panama, 9.375%, 04/01/29 PAN USD 14,156 0.0150,000 Government of Ghana, 24.50%, 06/21/21 GHA GHS 13,586 0.01

1,440,000 Serbia Treasury Note, 10.00%, 11/21/18 SRB RSD 13,422 0.0150,000 Government of Ghana, 21.00%, 03/23/20 GHA GHS 11,922 0.01

27,000,000 Government of Colombia, senior bond, 9.85%, 06/28/27 COL COP 10,624 0.01127,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 10,487 0.01

1,510,000 Government of Sri Lanka, 10.60%, 09/15/19 LKA LKR 9,853 0.011,500,000 Government of Sri Lanka, 9.25%, 05/01/20 LKA LKR 9,275 0.01

10 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/24 BRA BRL 9,099 0.01650,000 Serbia Treasury Note, 8.00%, 10/22/20 SRB RSD 6,020 0.00830,000 Government of Sri Lanka, 11.20%, 07/01/22 LKA LKR 5,334 0.00

17,000,000 Government of Colombia, senior bond, 4.375%, 03/21/23 COL COP 4,961 0.00750,000 Government of Sri Lanka, A, 7.50%, 08/15/18 LKA LKR 4,745 0.00

50,000,000 Government of Indonesia, FR43, 10.25%, 07/15/22 IDN IDR 4,129 0.00340,000 Government of Sri Lanka, 8.00%, 11/01/19 LKA LKR 2,065 0.00160,000 Serbia Treasury Note, 10.00%, 06/05/21 SRB RSD 1,614 0.00

90,000 Government of Sri Lanka, A, 9.00%, 05/01/21 LKA LKR 540 0.0040,000 Government of Sri Lanka, D, 8.50%, 06/01/18 LKA LKR 259 0.00

36,398,422 20.92

Securities Maturing Within One Year911,700 Government of Mexico, senior note, M, 5.00%, 06/15/17 MEX MXN 4,372,519 2.51

8,630,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 1,925,417 1.1136,303,660 Uruguay Notas del Tesoro, 18, Index Linked, 2.25%, 08/23/17 URY UYU 1,207,027 0.69

5,070,000 Bank of Negara Monetary Note, 0.00%, 06/22/17 MYS MYR 1,112,066 0.644,310,000 Bank of Negara Monetary Note, 0.00%, 09/19/17 MYS MYR 939,630 0.543,760,000 Government of Ghana, 24.44%, 05/29/17 GHA GHS 881,681 0.511,546,340 Mexico Treasury Bill, 0.00%, 05/25/17 MEX MXN 727,435 0.423,218,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 718,168 0.411,399,530 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 665,020 0.381,446,760 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 660,977 0.382,960,000 Government of Malaysia, senior bond, 3.814%, 02/15/17 MYS MYR 660,510 0.381,119,760 Mexico Treasury Bill, 0.00%, 05/11/17 MEX MXN 528,230 0.302,270,000 Bank of Negara Monetary Note, 0.00%, 04/20/17 MYS MYR 500,958 0.292,230,000 Bank of Negara Monetary Note, 0.00%, 07/20/17 MYS MYR 487,826 0.282,107,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 472,534 0.271,017,660 Mexico Treasury Bill, 0.00%, 09/14/17 MEX MXN 469,377 0.27

853,340 Mexico Treasury Bill, 0.00%, 04/12/17 MEX MXN 404,592 0.23830,120 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 386,661 0.22

1,490,000 Government of Ghana, 23.00%, 02/13/17 GHA GHS 346,127 0.201,530,000 Malaysia Treasury Bill, 0.00%, 03/10/17 MYS MYR 339,042 0.191,137,000 Government of Ghana, 23.00%, 08/21/17 GHA GHS 265,753 0.15

950,000 Malaysia Treasury Bill, 0.00%, 08/11/17 MYS MYR 208,030 0.12750,000 Ghana Treasury Note, 23.30%, 12/11/17 GHA GHS 176,388 0.10376,870 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 175,993 0.10640,000 Government of Ghana, 25.40%, 07/31/17 GHA GHS 151,409 0.09560,000 Ghana Treasury Note, 23.95%, 11/06/17 GHA GHS 132,083 0.08

3,440,956 Uruguay Notas del Tesoro, 10, Index Linked, 4.25%, 01/05/17 URY UYU 117,325 0.073,540,000 Uruguay Treasury Bill, Strip, 04/03/17 URY UYU 116,334 0.07

11,080,000 Serbia Treasury Note, 10.00%, 11/08/17 SRB RSD 99,084 0.062,885,000 Uruguay Notas del Tesoro, 11.00%, 03/21/17 URY UYU 98,383 0.06

202,940 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 96,657 0.06201,040 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 95,984 0.05184,840 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 88,457 0.05

2,490,000 Uruguay Treasury Bill, Strip, 02/10/17 URY UYU 83,556 0.05350,000 Malaysia Treasury Bill, 0.00%, 01/20/17 MYS MYR 77,911 0.04105,360 Mexico Treasury Bill, 0.00%, 04/27/17 MEX MXN 49,824 0.03190,000 Ghana Treasury Note, 24.25%, 10/09/17 GHA GHS 44,832 0.03

127,000,000 Colombian Tes Corto Plazo, Strip, 09/12/17 COL COP 40,384 0.0298,000,000 Colombian Tes Corto Plazo, Strip, 06/13/17 COL COP 31,663 0.02

115,000 Government of Ghana, 26.00%, 06/05/17 GHA GHS 27,145 0.023,150,000 Serbia Treasury Note, 8.00%, 01/12/17 SRB RSD 26,912 0.022,350,000 Serbia Treasury Note, 8.00%, 03/23/17 SRB RSD 20,246 0.01

70,000 Government of Ghana, 25.48%, 04/24/17 GHA GHS 16,419 0.0139,000,000 Colombian Tes Corto Plazo, Strip, 03/14/17 COL COP 12,811 0.01

960,000 Serbia Treasury Note, 10.00%, 05/08/17 SRB RSD 8,367 0.00190,000 Uruguay Treasury Bill, Strip, 05/19/17 URY UYU 6,134 0.00690,000 Serbia Treasury Note, 8.00%, 04/06/17 SRB RSD 5,953 0.00340,000 Government of Sri Lanka, 8.00%, 06/15/17 LKA LKR 2,253 0.00

10,000 Government of Sri Lanka, 8.25%, 03/01/17 LKA LKR 67 0.00

20,082,154 11.54

TOTAL BONDS 153,306,462 88.10







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assets


32,703 Halcon Resources Corp. ** USA USD 274,058 0.1616,450 Goodrich Petroleum Corp. ** USA USD 191,363 0.11

465,421 0.27







1,000,000 Vistra Energy Corp., Escrow Account ** USA USD 11,600 0.00500,000 Midstates Petroleum Co. Inc./Midstates Petroleum Co. LLC, Escrow Account ** USA USD 0 0.00700,000 NewPage Corp., Escrow Account ** USA USD 0 0.00

11,600 0.00




* These Bonds are currently in default‡ Income may be received in additional securities and/or cash^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.** These securities are submitted to a Fair Valuation






Number ofshares or


codeTradingcurrency

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% ofnet

assets


1,103,610 BAE Systems PLC GBR GBP 8,041,336 0.67




1,100,640 Nissan Motor Co. Ltd. JPN JPY 11,068,072 0.92209,460 Hyundai Motor Co., GDR, Reg S KOR USD 8,179,413 0.68

30,389,666 2.52

Banks2,135,478 HSBC Holdings PLC GBR HKD 17,142,757 1.42

197,190 JPMorgan Chase & Co. USA USD 17,015,525 1.41279,540 Citigroup Inc. USA USD 16,613,062 1.38217,690 BNP Paribas SA FRA EUR 13,869,184 1.15

2,889,200 Bangkok Bank PCL, fgn. THA THB 13,015,503 1.08727,848 ING Groep NV NLD EUR 10,239,303 0.85735,890 Credit Agricole SA FRA EUR 9,121,294 0.76

1,083,791 Standard Chartered PLC GBR GBP 8,859,511 0.74569,300 United Overseas Bank Ltd. SGP SGD 8,021,079 0.67

2,692,829 Barclays PLC GBR GBP 7,412,198 0.62181,669 Hana Financial Group Inc. KOR KRW 4,702,533 0.39125,129 KB Financial Group Inc., ADR KOR USD 4,415,802 0.37

130,427,751 10.84

Beverages412,000 Kirin Holdings Co. Ltd. JPN JPY 6,701,895 0.56156,600 Suntory Beverage & Food Ltd. JPN JPY 6,504,068 0.54

13,205,963 1.10


159,860 Gilead Sciences Inc. USA USD 11,447,575 0.95105,630 Ionis Pharmaceuticals Inc. USA USD 5,052,283 0.42

28,800,505 2.39


Capital Markets729,220 UBS Group AG CHE CHF 11,420,914 0.95

1,944,650 Aberdeen Asset Management PLC GBR GBP 6,163,666 0.51

17,584,580 1.46

Chemicals147,800 CF Industries Holdings Inc. USA USD 4,652,744 0.38112,540 Yara International ASA NOR NOK 4,429,170 0.37

2,393,300 PTT Global Chemical PCL, fgn. THA THB 4,205,799 0.35

13,287,713 1.10


Construction & Engineering1,875,784 Carillion PLC GBR GBP 5,455,527 0.45


Diversified Telecommunication Services922,170 Telenor ASA NOR NOK 13,770,104 1.14971,078 Telefonica SA ESP EUR 9,011,996 0.75

18,458,000 China Telecom Corp. Ltd., H CHN HKD 8,521,457 0.713,076,603 Singapore Telecommunications Ltd. SGP SGD 7,755,785 0.641,027,500 Telefonica Deutschland Holding AG DEU EUR 4,400,221 0.37

43,459,563 3.61


Electronic Equipment, Instruments & Components415,120 Knowles Corp. USA USD 6,936,655 0.58174,000 Omron Corp. JPN JPY 6,675,992 0.55

13,612,647 1.13


— Templeton Global Income Fund —




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% ofnet

assets

Energy Equipment & Services990,220 Petrofac Ltd. GBR GBP 10,600,085 0.88153,407 Halliburton Co. USA USD 8,297,785 0.69132,037 Tecnicas Reunidas SA ESP EUR 5,413,381 0.45

68,191 Baker Hughes Inc. USA USD 4,430,369 0.37

28,741,620 2.39



3,013,000 Haier Electronics Group Co. Ltd. CHN HKD 4,740,293 0.39

10,833,561 0.90


610,452 CK Hutchison Holdings Ltd. HKG HKD 6,919,689 0.571,677,000 Toshiba Corp. JPN JPY 4,061,412 0.34

19,177,099 1.59



318,860 Prudential PLC GBR GBP 6,392,620 0.53446,763 Aviva PLC GBR GBP 2,676,878 0.22

39,037,364 3.24

Internet Software & Services13,010 Alphabet Inc., A USA USD 10,309,775 0.86


Media190,950 Comcast Corp., A USA USD 13,185,098 1.09706,990 Sky PLC GBR GBP 8,630,675 0.72

21,815,773 1.81


291,670 Allegheny Technologies Inc. USA USD 4,646,303 0.39226,700 Silver Wheaton Corp. CAN CAD 4,379,355 0.36

14,765,610 1.23


Oil, Gas & Consumable Fuels3,169,320 BP PLC GBR GBP 19,895,432 1.65

682,651 Royal Dutch Shell PLC, B GBR GBP 19,795,343 1.641,099,378 Eni SpA ITA EUR 17,895,162 1.49

630,420 Galp Energia SGPS SA, B PRT EUR 9,412,623 0.78156,500 Total SA, B FRA EUR 8,022,688 0.67131,570 ConocoPhillips USA USD 6,596,920 0.55112,920 Devon Energy Corp. USA USD 5,157,056 0.43

86,775,224 7.21


442,702 Teva Pharmaceutical Industries Ltd., ADR ISR USD 16,047,947 1.3395,970 Bayer AG DEU EUR 10,010,111 0.83

113,990 Sanofi FRA EUR 9,223,407 0.77143,670 UCB SA BEL EUR 9,207,738 0.77113,610 Eli Lilly & Co. USA USD 8,356,016 0.69166,060 H. Lundbeck A/S DNK DKK 6,753,541 0.56

77,105,427 6.41



17,034,783 1.41


22,470,086 1.87

Technology Hardware, Storage & Peripherals9,714,000 Quanta Computer Inc. TWN TWD 18,048,474 1.50

8,711 Samsung Electronics Co. Ltd. KOR KRW 13,002,408 1.0872,230 Apple Inc. USA USD 8,365,678 0.69

654,000 Konica Minolta Inc. JPN JPY 6,495,522 0.54710,000 Catcher Technology Co. Ltd. TWN TWD 4,900,399 0.41

50,812,481 4.22






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Textiles, Apparel & Luxury Goods55,200 Aritzia Inc. CAN CAD 719,392 0.06


117,000 SoftBank Group Corp. JPN JPY 7,771,975 0.64624,000 China Mobile Ltd. CHN HKD 6,614,585 0.55

22,914,170 1.90

TOTAL SHARES 792,056,055 65.80




3 CEVA Holdings LLC, cvt. pfd., A-1 USA USD 975 0.00

53,641 0.00

Software4,300,000 Royal Bank of Canada into Microsoft Corp., 4.25%, cvt. pfd., 144A USA USD 4,316,856 0.36



800,000 BreitBurn Energy Partners LP/BreitBurn Finance Corp., senior bond, 7.875%,04/15/22 * USA USD 572,000 0.05

4,000,000 General Electric Co., senior note, A, 8.50%, 04/06/18 USA MXN 194,573 0.02288,021 Edcon Ltd., senior secured note, Reg S, PIK, 8.00%, 06/30/19 ^,‡ ZAF EUR 171,226 0.01308,207 Edcon Ltd., senior secured note, Reg S, PIK, 12.75%, 06/30/19 ^,‡ ZAF EUR 50,266 0.00

988,065 0.08


207,282,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 15,808,673 1.31948,400,000 Government of India, senior note, 8.83%, 11/25/23 IND INR 15,507,988 1.29

17,930,100,000 Korea Treasury Bond, senior note, 2.00%, 03/10/21 KOR KRW 14,969,941 1.2445,014 Nota Do Tesouro Nacional, 10.00%, 01/01/25 BRA BRL 12,891,960 1.07

120,161,000,000 Government of Indonesia, senior bond, FR56, 8.375%, 09/15/26 IDN IDR 9,164,259 0.76507,000,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 7,798,660 0.65

8,899,500,000 Korea Treasury Bond, senior note, 1.375%, 09/10/21 KOR KRW 7,238,335 0.606,747 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 6,154,378 0.51

1,341,600 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 6,143,598 0.516,771 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/22 BRA BRL 6,133,123 0.51

378,600,000 Government of India, senior bond, 7.80%, 05/03/20 IND INR 5,772,497 0.4814,557,000,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 5,037,610 0.42

284,300,000 Government of India, senior note, 8.12%, 12/10/20 IND INR 4,417,295 0.3755,747,000,000 Government of Indonesia, senior bond, 9.00%, 03/15/29 IDN IDR 4,396,454 0.37

4,349,000 Government of Kenya, senior note, Reg S, 6.875%, 06/24/24 KEN USD 4,139,487 0.34204,904,000 Government of the Philippines, senior note, 5-72, 2.125%, 05/23/18 PHL PHP 4,078,512 0.34

14,020 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 4,061,296 0.34787,000 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 3,693,522 0.31

4,329,000,000 Korea Treasury Bond, senior note, 1.50%, 06/10/19 KOR KRW 3,575,250 0.303,375 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/45 BRA BRL 3,109,211 0.26

10,780,000 Government of Ghana, senior note, 24.00%, 11/23/20 GHA GHS 2,783,864 0.2380,093,400 Uruguay Notas del Tesoro, senior note, 13.90%, 07/29/20 URY UYU 2,724,678 0.2343,373,000 Argentine Bonos del Tesoro, senior note, 15.50%, 10/17/26 ARG ARS 2,632,494 0.22

33,965,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 2,584,088 0.212,605,000 Government of Ukraine, Reg S, 7.75%, 09/01/23 UKR USD 2,500,800 0.212,605,000 Government of Ukraine, Reg S, 7.75%, 09/01/24 UKR USD 2,474,750 0.212,605,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 2,452,295 0.202,605,000 Government of Ukraine, Reg S, 7.75%, 09/01/26 UKR USD 2,448,700 0.202,605,000 Government of Ukraine, Reg S, 7.75%, 09/01/27 UKR USD 2,433,617 0.201,760,000 Government of Montenegro, Reg S, 5.375%, 05/20/19 MNE EUR 1,923,502 0.16

111,700,000 Government of India, senior bond, 8.35%, 05/14/22 IND INR 1,762,276 0.155,381,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRN

thereafter, 05/31/40 UKR USD 1,641,205 0.146,063,000 Government of Malaysia, senior bond, 4.24%, 02/07/18 MYS MYR 1,365,540 0.113,778,000 Government of Peru, senior bond, 7.84%, 08/12/20 PER PEN 1,225,483 0.10

70,200,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 1,059,407 0.0927,967,046 Government of Uruguay, senior bond, Index Linked, 4.375%, 12/15/28 URY UYU 877,054 0.07

9,362,000,000 Government of Indonesia, FR35, 12.90%, 06/15/22 IDN IDR 852,986 0.0736,100,000 Government of the Philippines, senior note, 3.375%, 08/20/20 PHL PHP 717,765 0.06

3,035,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 676,319 0.062,850,000 Ghana Treasury Note, 24.05%, 02/05/18 GHA GHS 675,808 0.06

10,843,000 Argentine Bonos del Tesoro, 16.00%, 10/17/23 ARG ARS 656,011 0.052,490,000 Government of Ghana, 24.50%, 04/22/19 GHA GHS 619,701 0.05

93,600,000 Government of Sri Lanka, C, 8.50%, 04/01/18 LKA LKR 607,800 0.051,598,000,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 547,083 0.05

107,600 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 534,394 0.042,107,000 Government of Ghana, 24.50%, 10/22/18 GHA GHS 521,717 0.04

83,100,000 Government of Sri Lanka, A, 9.00%, 05/01/21 LKA LKR 498,761 0.04






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)1,890,000 Government of Ghana, 23.47%, 05/21/18 GHA GHS 447,393 0.04

1,119,000,000 Titulos de Tesoreria, senior bond, B, 10.00%, 07/24/24 COL COP 439,474 0.045,295,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 437,238 0.04

17,260,000 Government of the Philippines, senior note, 7-56, 3.875%, 11/22/19 PHL PHP 350,725 0.031,340,000 Ghana Treasury Note, 24.25%, 06/11/18 GHA GHS 320,450 0.03

970 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 275,204 0.021,210,000 Government of Ghana, 19.04%, 09/24/18 GHA GHS 270,666 0.02

3,655,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 265,189 0.027,741,913 Government of Uruguay, Index Linked, 4.25%, 04/05/27 URY UYU 243,346 0.027,180,000 Uruguay Notas del Tesoro, 7, 13.25%, 04/08/18 URY UYU 242,810 0.02

14,700,000 Government of India, senior note, 7.28%, 06/03/19 IND INR 220,626 0.026,098,438 Government of Uruguay, senior bond, Index Linked, 5.00%, 09/14/18 URY UYU 205,509 0.026,243,528 Uruguay Notas del Tesoro, 14, Index Linked, 4.00%, 06/10/20 URY UYU 204,285 0.02

676,000,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 202,477 0.022,816,000,000 Government of Indonesia, senior bond, FR63, 5.625%, 05/15/23 IDN IDR 186,862 0.02

507,000,000 Titulos de Tesoreria, senior bond, B, 11.25%, 10/24/18 COL COP 182,533 0.025,717,388 Uruguay Notas del Tesoro, 13, Index Linked, 4.00%, 05/25/25 URY UYU 179,202 0.02

466,000,000 Titulos de Tesoreria, senior bond, B, 11.00%, 07/24/20 COL COP 176,451 0.01500,000,000 Titulos de Tesoreria, senior bond, B, 7.00%, 05/04/22 COL COP 168,965 0.01476,000,000 Government of Colombia, senior bond, 7.75%, 04/14/21 COL COP 165,690 0.01

2,099,000,000 Government of Indonesia, senior note, FR69, 7.875%, 04/15/19 IDN IDR 157,435 0.01331,000,000 Titulos de Tesoreria, senior note, B, 7.00%, 09/11/19 COL COP 111,809 0.01

1,046,000,000 Government of Indonesia, 6.125%, 05/15/28 IDN IDR 65,606 0.012,123,799 Government of Uruguay, senior bond, Index Linked, 3.70%, 06/26/37 URY UYU 58,716 0.00

697,000,000 Government of Indonesia, senior bond, FR59, 7.00%, 05/15/27 IDN IDR 49,019 0.00120,000 Government of Ghana, 24.50%, 06/21/21 GHA GHS 32,607 0.00120,000 Government of Ghana, 24.50%, 05/27/19 GHA GHS 29,768 0.00

349,000,000 Government of Indonesia, senior bond, FR47, 10.00%, 02/15/28 IDN IDR 29,272 0.0087,000,000 Titulos de Tesoreria, B, 5.00%, 11/21/18 COL COP 28,391 0.00

1,250,000 Government of the Philippines, senior note, 7-51, 5.00%, 08/18/18 PHL PHP 25,560 0.0025,000 Government of El Salvador, senior bond, Reg S, 7.65%, 06/15/35 SLV USD 23,149 0.00

56,000,000 Government of Colombia, senior bond, 9.85%, 06/28/27 COL COP 22,034 0.00580,312 Government of Uruguay, senior bond, Index Linked, 4.00%, 07/10/30 URY UYU 17,340 0.00

36,000,000 Government of Colombia, senior bond, 4.375%, 03/21/23 COL COP 10,506 0.00150,000 Government of the Philippines, senior note, 5.875%, 01/31/18 PHL PHP 3,111 0.00

210,193,964 17.46


102,691,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 23,030,391 1.9122,760,000 Bank of Negara Monetary Note, 0.00%, 07/20/17 MYS MYR 4,978,890 0.41


6,961,100 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 3,323,475 0.2814,180,000 Government of Ghana, 23.00%, 08/21/17 GHA GHS 3,314,323 0.28

158,360,000 Philippine Treasury Bill, 0.00%, 02/22/17 PHL PHP 3,185,346 0.276,131,950 Mexico Treasury Bill, 0.00%, 05/11/17 MEX MXN 2,892,656 0.245,989,490 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 2,736,402 0.235,567,210 Mexico Treasury Bill, 0.00%, 09/14/17 MEX MXN 2,567,774 0.214,476,910 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 2,127,310 0.186,020,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 1,343,496 0.112,828,050 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 1,317,275 0.11

49,320,000 Government of the Philippines, senior note, 3-21, 2.875%, 05/22/17 PHL PHP 995,410 0.0820,970,000 Uruguay Treasury Bill, Strip, 05/19/17 URY UYU 676,975 0.06

1,427,520 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 666,630 0.0615,826,291 Uruguay Notas del Tesoro, 18, Index Linked, 2.25%, 08/23/17 URY UYU 526,194 0.04

998,140 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 475,397 0.041,860,000 Malaysia Treasury Bill, 0.00%, 08/11/17 MYS MYR 407,301 0.03

616,540 Mexico Treasury Bill, 0.00%, 04/12/17 MEX MXN 292,318 0.027,600,000 Uruguay Treasury Bill, Strip, 04/03/17 URY UYU 249,757 0.02

930,000 Malaysia Treasury Bill, 0.00%, 01/20/17 MYS MYR 207,021 0.02790,000 Government of Ghana, 26.00%, 06/05/17 GHA GHS 186,473 0.02

5,730,000 Philippine Treasury Bill, 0.00%, 03/15/17 PHL PHP 115,161 0.01168,150 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 80,470 0.01

1,250,000 Philippine Treasury Bill, 0.00%, 02/08/17 PHL PHP 25,164 0.001,240,000 Philippine Treasury Bill, 0.00%, 09/27/17 PHL PHP 24,662 0.001,160,000 Philippine Treasury Bill, 0.00%, 03/29/17 PHL PHP 23,296 0.001,110,000 Philippine Treasury Bill, 0.00%, 04/19/17 PHL PHP 22,281 0.00

550,000 Uruguay Treasury Bill, Strip, 02/10/17 URY UYU 18,456 0.00740,000 Philippine Treasury Bill, 0.00%, 01/18/17 PHL PHP 14,907 0.00620,000 Philippine Treasury Bill, 0.00%, 03/08/17 PHL PHP 12,465 0.00260,000 Uruguay Notas del Tesoro, 11.00%, 03/21/17 URY UYU 8,866 0.00140,304 Uruguay Notas del Tesoro, 10, Index Linked, 4.25%, 01/05/17 URY UYU 4,784 0.00

93,580,519 7.78

TOTAL BONDS 304,762,548 25.32







Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETWARRANTSSpecialty Retail

13,002,143 Edcon Holdings Ltd., wts., 02/20/49 ** ZAF EUR 0 0.00



400,000 NewPage Corp., Escrow Account ** USA USD 0 0.00

TOTAL BONDS 0 0.00



* These Bonds are currently in default^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.‡ Income may be received in additional securities and/or cash** These securities are submitted to a Fair Valuation






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


13,100 iShares Russell 2000 ETF USA USD 1,766,535 1.51


SHARESAuto Components

16,410 Drew Industries Inc. USA USD 1,768,177 1.51246,000 Minth Group Ltd. CHN HKD 766,123 0.65

14,000 Keihin Corp. JPN JPY 245,280 0.21

2,779,580 2.37

Automobiles40,980 Winnebago Industries Inc. USA USD 1,297,017 1.1112,136 Thor Industries Inc. USA USD 1,214,207 1.03

2,511,224 2.14

Banks163,090 Huntington Bancshares Inc. USA USD 2,156,050 1.84156,013 BNK Financial Group Inc. KOR KRW 1,121,712 0.96511,800 TISCO Financial Group PCL, fgn. THA THB 860,138 0.73

8,080 Texas Capital Bancshares Inc. USA USD 633,472 0.5473,310 DGB Financial Group Inc. KOR KRW 593,279 0.51

5,364,651 4.58

Biotechnology7,550 Basilea Pharmaceutica AG CHE CHF 541,933 0.46

Building Products49,020 Simpson Manufacturing Co. Inc. USA USD 2,144,625 1.8313,600 Patrick Industries Inc. USA USD 1,037,680 0.8886,100 Bunka Shutter Co. Ltd. JPN JPY 664,376 0.57

3,846,681 3.28

Capital Markets92,267 AllianceBernstein Holding LP USA USD 2,163,661 1.85

150,150 Janus Capital Group Inc. USA USD 1,992,490 1.7069,570 Investment Technology Group Inc. USA USD 1,373,312 1.17

918,300 Value Partners Group Ltd. HKG HKD 729,477 0.62184,100 Canaccord Genuity Group Inc. CAN CAD 653,975 0.56

28,170 Azimut Holding SpA ITA EUR 470,098 0.40

7,383,013 6.30

Chemicals104,960 Ferro Corp. USA USD 1,504,077 1.28

45,400 Nihon Parkerizing Co. Ltd. JPN JPY 532,473 0.46

2,036,550 1.74

Construction & Engineering79,420 Tutor Perini Corp. USA USD 2,223,760 1.8968,100 Badger Daylighting Ltd. CAN CAD 1,627,949 1.3957,459 Arcadis NV NLD EUR 805,910 0.69

4,657,619 3.97

Consumer Finance23,930 Green Dot Corp. USA USD 563,551 0.48

Containers & Packaging49,910 Huhtamaki OYJ FIN EUR 1,852,740 1.58

Electronic Equipment, Instruments & Components113,980 Knowles Corp. USA USD 1,904,606 1.62

97,040 Jenoptik AG DEU EUR 1,677,083 1.43686,000 Tripod Technology Corp. TWN TWD 1,538,794 1.31102,529 Oxford Instruments PLC GBR GBP 924,519 0.79837,900 Hana Microelectronics PCL, fgn. THA THB 923,209 0.79104,200 Anritsu Corp. JPN JPY 561,581 0.48214,669 Laird PLC GBR GBP 404,593 0.35

7,934,385 6.77

Energy Equipment & Services87,000 Mullen Group Ltd. CAN CAD 1,284,786 1.1029,987 Tecnicas Reunidas SA ESP EUR 1,229,436 1.05

125,660 Newpark Resources Inc. USA USD 942,450 0.8024,800 Shawcor Ltd., A CAN CAD 661,924 0.56

4,118,596 3.51

Equity Real Estate Investment Trusts (REIT’s)13,300 Education Realty Trust Inc. USA USD 562,590 0.48

Food & Staples Retailing46,810 SpartanNash Co. USA USD 1,850,867 1.58


— Templeton Global Smaller Companies Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Food Products163,700 Freshpet Inc. USA USD 1,661,555 1.42

28,900 M Dias Branco SA BRA BRL 1,021,227 0.87173,460 Cloetta AB, B SWE SEK 546,514 0.47

3,229,296 2.76

Health Care Equipment & Supplies21,971 LivaNova PLC GBR USD 988,036 0.84

Household Durables501,000 Techtronic Industries Co. Ltd. HKG HKD 1,796,093 1.53

13,825 Bellway PLC GBR GBP 421,671 0.3634,540 Bovis Homes Group PLC GBR GBP 348,894 0.30

201,500 Haier Electronics Group Co. Ltd. CHN HKD 317,016 0.27

2,883,674 2.46

Household Products303,000 Vinda International Holdings Ltd. HKG HKD 566,574 0.48

Insurance38,430 United Insurance Holdings Corp. USA USD 581,830 0.50

Leisure products75,340 Amer Sports OYJ FIN EUR 2,004,015 1.71

124,240 The Thule Group AB, Reg S SWE SEK 1,943,551 1.66187,500 JAKKS Pacific Inc. USA USD 965,625 0.82

95,105 Black Diamond Inc. USA USD 508,812 0.4324,100 Technogym SpA, Reg S ITA EUR 112,387 0.10

5,534,390 4.72

Life Sciences Tools & Services26,700 Gerresheimer AG DEU EUR 1,983,980 1.69

3,660 Tecan Group AG CHE CHF 571,066 0.49

2,555,046 2.18

Machinery63,660 Hillenbrand Inc. USA USD 2,441,361 2.0824,970 Alamo Group Inc. USA USD 1,900,217 1.62

110,165 Interpump Group SpA ITA EUR 1,802,488 1.5449,447 Aalberts Industries NV NLD EUR 1,603,507 1.3721,760 Hyster-Yale Materials Handling Inc. USA USD 1,387,635 1.1826,840 Construcciones y Auxiliar de Ferrocarriles SA ESP EUR 1,081,632 0.92

3,690 Bucher Industries AG CHE CHF 908,550 0.7831,990 Trimas Corp. USA USD 751,765 0.64

145,000 Nachi-Fujikoshi Corp. JPN JPY 628,898 0.54

12,506,053 10.67

Metals & Mining107,940 Stillwater Mining Co. USA USD 1,738,913 1.48211,000 Dowa Holdings Co. Ltd. JPN JPY 1,613,705 1.38

82,590 HudBay Minerals Inc. CAN CAD 472,365 0.40

3,824,983 3.26

Oil, Gas & Consumable Fuels409,800 Gran Tierra Energy Inc. COL CAD 1,239,044 1.06

Personal Products42,622 Kobayashi Pharmaceutical Co. Ltd. JPN JPY 1,823,089 1.5517,190 Ontex Group NV BEL EUR 510,967 0.44

2,334,056 1.99

Pharmaceuticals77,100 Tsumura & Co. JPN JPY 2,123,803 1.81

332,180 Vectura Group PLC GBR GBP 561,008 0.48

2,684,811 2.29

Professional Services77,793 Heidrick & Struggles International Inc. USA USD 1,878,701 1.6017,900 MEITEC Corp. JPN JPY 685,252 0.5918,900 TechnoPro Holdings Inc. JPN JPY 606,313 0.52

3,170,266 2.71

Real Estate Management & Development61,540 Grand City Properties SA DEU EUR 1,119,569 0.95

364,697 Foxtons Group PLC GBR GBP 458,237 0.394,076,750 Vista Land & Lifescapes Inc. PHL PHP 406,857 0.35

1,984,663 1.69

Road & Rail43,770 ArcBest Corp. USA USD 1,210,240 1.03

Software44,800 Capcom Co. Ltd. JPN JPY 1,053,937 0.90






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Specialty Retail159,770 West Marine Inc. USA USD 1,672,792 1.43

43,100 Hibbett Sports Inc. USA USD 1,607,630 1.37327,000 Luk Fook Holdings (International) Ltd. HKG HKD 853,924 0.73117,300 IDOM Inc. JPN JPY 646,231 0.55

79,400 Laox Co. Ltd. JPN JPY 486,337 0.4125,300 The Finish Line Inc., A USA USD 475,893 0.41

5,742,807 4.90

Technology Hardware, Storage & Peripherals536,107 Chicony Electronics Co. Ltd. TWN TWD 1,238,904 1.06

47,180 Logitech International SA CHE USD 1,168,649 1.00

2,407,553 2.06

Textiles, Apparel & Luxury Goods34,240 Columbia Sportswear Co. USA USD 1,996,192 1.7088,500 Asics Corp. JPN JPY 1,767,805 1.5119,310 CCC SA POL PLN 938,975 0.80

217,200 Alpargatas SA, pfd. BRA BRL 668,010 0.5711,430 Deckers Outdoor Corp. USA USD 633,108 0.54

9,300 Tod’s SpA ITA EUR 604,741 0.52

6,608,831 5.64

Thrifts & Mortgage Finance133,784 LIC Housing Finance Ltd. IND INR 1,101,897 0.94

21,900 Genworth MI Canada Inc. CAN CAD 548,968 0.47

1,650,865 1.41

Trading Companies & Distributors33,640 NOW Inc. USA USD 688,611 0.59

321,823 SIG PLC GBR GBP 409,123 0.35

1,097,734 0.94

TOTAL SHARES 109,858,669 93.73


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESMetals & Mining

896,000 Sakari Resources Ltd. ** IDN SGD 597,114 0.51










Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


11,264 CEVA Holdings LLC, cvt. pfd., A-2 USA USD 2,534,353 0.025,203 CEVA Holdings LLC USA USD 520,333 0.00


3,120,661 0.02

Diversified Telecommunication Services679 Centaur Funding Corp., pfd., 144A, 9.08% CYM USD 794,430 0.00



811,800 Government of Ivory Coast, Reg S, 5.75%, 12/31/32 CIV USD 755,437 0.00

Corporate Bonds989,000,000 General Electric Co., senior note, A, 8.50%, 04/06/18 USA MXN 48,108,106 0.26

64,720,000 Edcon Ltd., senior secured note, first lien, Reg S, 9.50%, 03/01/18 *,^ ZAF USD 10,031,600 0.053,490,995 Edcon Ltd., senior secured note, Reg S, PIK, 8.00%, 06/30/19 ^,‡ ZAF EUR 2,075,372 0.012,000,000 Stena International SA, senior secured bond, first lien, 144A, 5.75%,

03/01/24 SWE USD 1,745,900 0.0110,250,000 Edcon Ltd., senior secured note, first lien, Reg S, 9.50%, 03/01/18 *,^ ZAF EUR 1,671,682 0.01

1,000,000 Hutchison Whampoa International Ltd., Reg S, 7.45%, 11/24/33 HKG USD 1,365,840 0.013,735,668 Edcon Ltd., senior secured note, Reg S, PIK, 12.75%, 06/30/19 ^,‡ ZAF EUR 609,254 0.00

65,607,754 0.35

Government and Municipal Bonds843,134,630,000 Korea Treasury Bond, senior note, 2.00%, 03/10/21 KOR KRW 703,937,824 3.72

2,567,920 Letra Tesouro Nacional, Strip, 07/01/19 BRA BRL 608,449,184 3.22101,774,800 Government of Mexico, senior note, M, 5.00%, 12/11/19 MEX MXN 466,058,005 2.47

7,339,311,100 Argentine Bonos del Tesoro, senior note, 15.50%, 10/17/26 ARG ARS 445,454,382 2.361,323,470 Nota Do Tesouro Nacional, 10.00%, 01/01/21 BRA BRL 391,847,477 2.07

379,980,000 Government of Portugal, Reg S, 5.125%, 10/15/24 PRT USD 370,195,515 1.961,279,534 Nota Do Tesouro Nacional, 10.00%, 01/01/25 BRA BRL 366,457,130 1.941,445,230 Letra Tesouro Nacional, Strip, 01/01/19 BRA BRL 360,799,958 1.91

5,366,822,000 Argentine Bonos del Tesoro, 18.20%, 10/03/21 ARG ARS 343,964,467 1.824,458,317,000,000 Government of Indonesia, senior bond, FR53, 8.25%, 07/15/21 IDN IDR 340,020,233 1.804,438,261,000,000 Government of Indonesia, senior bond, FR70, 8.375%, 03/15/24 IDN IDR 337,666,891 1.794,350,208,000,000 Government of Indonesia, senior bond, FR56, 8.375%, 09/15/26 IDN IDR 331,775,138 1.75

10,548,435,315 Government of Uruguay, senior bond, Index Linked, 4.375%, 12/15/28 URY UYU 330,801,809 1.751,124,896 Nota Do Tesouro Nacional, 10.00%, 01/01/23 BRA BRL 325,858,492 1.72

374,429,600,000 Korea Monetary Stabilization Bond, senior note, 1.49%, 02/02/18 KOR KRW 309,880,034 1.64861,479,000,000 Titulos de Tesoreria, B, 7.75%, 09/18/30 COL COP 298,124,284 1.58

1,200,098 Letra Tesouro Nacional, Strip, 07/01/20 BRA BRL 254,016,503 1.34265,405,000,000 Korea Monetary Stabilization Bond, senior note, 1.45%, 06/02/18 KOR KRW 219,468,623 1.16

10,628,970,000 Government of the Philippines, senior note, 7-56, 3.875%, 11/22/19 PHL PHP 215,981,776 1.1445,812,600 Government of Mexico, M, 4.75%, 06/14/18 MEX MXN 215,006,158 1.14

2,512,700,000,000 Government of Indonesia, 8.375%, 03/15/34 IDN IDR 187,904,731 0.9910,792,600,000 Government of India, senior note, 8.83%, 11/25/23 IND INR 176,477,768 0.93

477,281,000,000 Titulos de Tesoreria, senior bond, B, 7.50%, 08/26/26 COL COP 163,399,584 0.8631,787,000 Government of Mexico, senior note, 8.50%, 12/13/18 MEX MXN 157,869,618 0.84

17,166,170,000 Serbia Treasury Note, 10.00%, 03/02/18 SRB RSD 155,427,607 0.82186,187,000,000 Korea Treasury Bond, senior note, 1.375%, 09/10/21 KOR KRW 151,433,670 0.80

571,389,000 Government of Ghana, 24.50%, 10/22/18 GHA GHS 141,482,356 0.75494,121 Nota Do Tesouro Nacional, 10.00%, 01/01/27 BRA BRL 140,189,963 0.74138,458 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/23 BRA BRL 126,296,559 0.67

8,040,400,000 Government of India, senior note, 7.80%, 04/11/21 IND INR 123,677,209 0.651,996,224,900 Argentine Bonos del Tesoro, 16.00%, 10/17/23 ARG ARS 120,773,340 0.64

123,289,000 Government of Ukraine, Reg S, 7.75%, 09/01/22 UKR USD 119,590,330 0.63123,279,000 Government of Ukraine, Reg S, 7.75%, 09/01/23 UKR USD 118,347,840 0.63123,269,000 Government of Ukraine, Reg S, 7.75%, 09/01/24 UKR USD 117,105,550 0.62123,269,000 Government of Ukraine, Reg S, 7.75%, 09/01/25 UKR USD 116,042,971 0.61123,259,000 Government of Ukraine, Reg S, 7.75%, 09/01/26 UKR USD 115,863,460 0.61123,249,000 Government of Ukraine, Reg S, 7.75%, 09/01/27 UKR USD 115,140,448 0.61113,289,000 Government of Ukraine, Reg S, 7.75%, 09/01/21 UKR USD 111,023,220 0.59

1,378,758,000,000 Government of Indonesia, senior bond, 9.00%, 03/15/29 IDN IDR 108,734,922 0.58112,805,900,000 Korea Treasury Bond, senior bond, 4.25%, 06/10/21 KOR KRW 103,021,139 0.54

10,102,780,000 Serbia Treasury Note, 10.00%, 04/27/18 SRB RSD 92,064,787 0.49228,829,000,000 Titulos de Tesoreria, senior bond, B, 10.00%, 07/24/24 COL COP 89,869,890 0.48

94,170 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/45 BRA BRL 86,753,908 0.46282,690 Nota Do Tesouro Nacional, senior note, 10.00%, 01/01/19 BRA BRL 85,544,667 0.45

2,483,581,100 Uruguay Notas del Tesoro, senior note, 13.90%, 07/29/20 URY UYU 84,488,338 0.45951,650,000,000 Government of Indonesia, senior bond, FR40, 11.00%, 09/15/25 IDN IDR 83,351,027 0.44277,326,000,000 Titulos de Tesoreria, senior bond, B, 6.00%, 04/28/28 COL COP 83,065,238 0.44

8,015,050,000 Serbia Treasury Note, 10.00%, 02/05/22 SRB RSD 81,013,370 0.4392,750,700,000 Korea Treasury Bond, senior note, 1.50%, 06/10/19 KOR KRW 76,601,273 0.41

2,251,540,000 Uruguay Notas del Tesoro, 7, 13.25%, 04/08/18 URY UYU 76,141,593 0.40246,722,000 Government of Ukraine, senior bond, Reg S, zero cpn. to 05/31/21, FRN

thereafter, 05/31/40 UKR USD 75,250,210 0.4077,010,000 Government of Kenya, senior note, Reg S, 6.875%, 06/24/24 KEN USD 73,300,043 0.3971,299,000 Government of Ukraine, Reg S, 7.75%, 09/01/20 UKR USD 70,764,258 0.37

77,417 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/22 BRA BRL 70,123,760 0.37


— Templeton Global Total Return Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)857,538,000 Government of South Africa, R186, 10.50%, 12/21/26 ZAF ZAR 68,877,805 0.36305,820,000 Government of Ghana, 19.04%, 09/24/18 GHA GHS 68,409,172 0.36

773,830,000,000 Government of Indonesia, senior bond, FR46, 9.50%, 07/15/23 IDN IDR 62,319,935 0.335,899,270,000 Serbia Treasury Note, 10.00%, 10/23/24 SRB RSD 61,873,768 0.333,101,562,000 Government of the Philippines, senior note, 5-72, 2.125%, 05/23/18 PHL PHP 61,735,044 0.336,569,430,000 Serbia Treasury Note, 8.00%, 10/22/20 SRB RSD 60,840,011 0.323,645,300,000 Government of India, senior note, 8.12%, 12/10/20 IND INR 56,638,644 0.305,333,780,000 Serbia Treasury Note, 10.00%, 09/11/21 SRB RSD 53,422,431 0.283,501,600,000 Government of India, senior bond, 7.80%, 05/03/20 IND INR 53,388,739 0.283,415,000,000 Government of India, senior note, 8.27%, 06/09/20 IND INR 53,027,504 0.28

641,978,000,000 Government of Indonesia, senior bond, 8.75%, 05/15/31 IDN IDR 49,914,431 0.262,898,000,000 Government of India, senior bond, 9.15%, 11/14/24 IND INR 48,716,191 0.26

39,729,000 Government of Croatia, Reg S, 6.75%, 11/05/19 HRV USD 43,211,843 0.232,799,600,000 Government of India, senior note, 7.16%, 05/20/23 IND INR 42,249,500 0.22

173,960,000 Government of Ghana, 23.23%, 02/19/18 GHA GHS 40,949,062 0.223,793,370,000 Serbia Treasury Note, 10.00%, 03/20/21 SRB RSD 37,570,947 0.20

157,310,000 Ghana Treasury Note, 22.50%, 12/10/18 GHA GHS 36,551,844 0.1996,525,000,000 Titulos de Tesoreria, senior bond, B, 11.00%, 07/24/20 COL COP 36,549,114 0.19

554,950,000 Government of South Africa, 8.00%, 01/31/30 ZAF ZAR 36,366,511 0.19145,680,000 Government of Ghana, 23.47%, 05/21/18 GHA GHS 34,484,737 0.18

93,880,000,000 Titulos de Tesoreria, senior bond, B, 11.25%, 10/24/18 COL COP 33,799,297 0.1898,976,000,000 Titulos de Tesoreria, senior bond, B, 7.00%, 05/04/22 COL COP 33,446,930 0.18

32,836 Nota Do Tesouro Nacional, Index Linked, 6.00%, 05/15/19 BRA BRL 29,864,030 0.164,501,100,000 Government of Sri Lanka, 10.60%, 07/01/19 LKA LKR 29,411,293 0.16

386,809,000,000 Government of Indonesia, senior bond, FR59, 7.00%, 05/15/27 IDN IDR 27,203,658 0.14353,348,000,000 Government of Indonesia, senior note, FR69, 7.875%, 04/15/19 IDN IDR 26,502,725 0.14310,220,000,000 Government of Indonesia, senior bond, FR42, 10.25%, 07/15/27 IDN IDR 26,474,454 0.14

388,840,000 Government of South Africa, 8.25%, 03/31/32 ZAF ZAR 25,520,184 0.13349,652,000,000 Government of Indonesia, senior bond, FR61, 7.00%, 05/15/22 IDN IDR 25,369,071 0.13

28,962,300,000 Korea Treasury Bond, senior note, 1.75%, 12/10/18 KOR KRW 24,056,637 0.13346,660,000 Government of South Africa, 8.875%, 02/28/35 ZAF ZAR 23,706,182 0.13490,784,000 Inter-American Development Bank, senior bond, 7.50%, 12/05/24 SP MXN 23,492,000 0.12

94,360,000 Government of Ghana, 24.50%, 05/27/19 GHA GHS 23,407,529 0.12253,817,000,000 Government of Indonesia, FR35, 12.90%, 06/15/22 IDN IDR 23,125,648 0.12273,500,000,000 Government of Indonesia, senior bond, FR47, 10.00%, 02/15/28 IDN IDR 22,939,703 0.12

767,515,029 Government of Uruguay, senior bond, Index Linked, 4.00%, 07/10/30 URY UYU 22,933,323 0.123,646,880,000 Government of Sri Lanka, A, 9.00%, 05/01/21 LKA LKR 21,888,340 0.12

63,003,000,000 Titulos de Tesoreria, senior note, B, 7.00%, 09/11/19 COL COP 21,281,979 0.1176,740,000 Government of Ghana, 24.50%, 06/21/21 GHA GHS 20,851,883 0.11

244,640,000,000 Government of Indonesia, FR43, 10.25%, 07/15/22 IDN IDR 20,201,295 0.11220,584,000,000 Government of Indonesia, FR34, 12.80%, 06/15/21 IDN IDR 19,493,185 0.10

950,600,000 Government of the Philippines, senior note, 7-51, 5.00%, 08/18/18 PHL PHP 19,438,090 0.1078,750,000 Ghana Treasury Note, 24.25%, 06/11/18 GHA GHS 18,832,389 0.10

2,678,950,000 Government of Sri Lanka, D, 8.50%, 06/01/18 LKA LKR 17,320,002 0.091,033,200,000 Government of India, senior bond, 8.35%, 05/14/22 IND INR 16,300,661 0.09

69,748,000 Government of Malaysia, senior note, 3.26%, 03/01/18 MYS MYR 15,542,641 0.0843,631,000,000 Government of Colombia, senior bond, 7.75%, 04/14/21 COL COP 15,187,454 0.08

225,837,000,000 Government of Indonesia, senior bond, FR63, 5.625%, 05/15/23 IDN IDR 14,985,956 0.0816,891,000,000 Korea Treasury Bond, senior note, 2.75%, 09/10/19 KOR KRW 14,385,168 0.08

63,773,000 Government of Malaysia, senior bond, 4.24%, 02/07/18 MYS MYR 14,363,283 0.08160,863,000,000 Government of Indonesia, senior bond, FR31, 11.00%, 11/15/20 IDN IDR 13,283,359 0.07

2,570,999 Mexican Udibonos, Index Linked, 4.00%, 06/13/19 MEX MXN 12,919,218 0.0745,400,000 Government of Ghana, 24.50%, 04/22/19 GHA GHS 11,298,970 0.06

1,731,120,000 Government of Sri Lanka, A, 11.00%, 08/01/21 LKA LKR 11,134,349 0.061,701,880,000 Government of Sri Lanka, C, 8.50%, 04/01/18 LKA LKR 11,051,314 0.06

2,027,257 Mexican Udibonos, Index Linked, 2.50%, 12/10/20 MEX MXN 9,802,806 0.0537,660,000 Government of Ghana, 22.49%, 04/23/18 GHA GHS 8,809,618 0.05

115,440,000,000 Government of Indonesia, FR48, 9.00%, 09/15/18 IDN IDR 8,809,088 0.0525,148,000 Government of Peru, senior bond, 7.84%, 08/12/20 PER PEN 8,157,345 0.04

76,180,000,000 Government of Indonesia, senior bond, FR39, 11.75%, 08/15/23 IDN IDR 6,785,375 0.04113,680,000 Government of South Africa, 7.00%, 02/28/31 ZAF ZAR 6,768,538 0.04

20,651,000,000 Titulos de Tesoreria, B, 5.00%, 11/21/18 COL COP 6,739,022 0.0422,630,000 Government of Ghana, 24.75%, 07/19/21 GHA GHS 6,151,548 0.03

63,998,000,000 Government of Indonesia, FR36, 11.50%, 09/15/19 IDN IDR 5,215,056 0.03176,400,256 Government of Uruguay, senior bond, Index Linked, 3.70%, 06/26/37 URY UYU 4,876,888 0.03222,880,000 Government of the Philippines, senior note, 5.875%, 01/31/18 PHL PHP 4,621,839 0.02

52,080,000,000 Government of Indonesia, FR52, 10.50%, 08/15/30 IDN IDR 4,560,135 0.02648,790,000 Government of Sri Lanka, B, 8.50%, 07/15/18 LKA LKR 4,169,818 0.02

10,539,000,000 Government of Colombia, senior bond, 9.85%, 06/28/27 COL COP 4,146,791 0.02551,640,000 Government of Sri Lanka, A, 7.50%, 08/15/18 LKA LKR 3,490,080 0.02

40,850,000,000 Government of Indonesia, senior bond, FR44, 10.00%, 09/15/24 IDN IDR 3,370,243 0.0234,325,000,000 Government of Indonesia, FR45, 9.75%, 05/15/37 IDN IDR 2,875,172 0.0244,881,000,000 Government of Indonesia, 6.125%, 05/15/28 IDN IDR 2,814,954 0.01

136,100,000 Government of India, senior note, 7.28%, 06/03/19 IND INR 2,042,665 0.016,616,000,000 Government of Colombia, senior bond, 4.375%, 03/21/23 COL COP 1,930,814 0.01

1,920 Nota Do Tesouro Nacional, Index Linked, 6.00%, 08/15/24 BRA BRL 1,747,055 0.0183,270,000 Government of the Philippines, senior note, 3.375%, 08/20/20 PHL PHP 1,655,631 0.01

257,190,000 Government of Sri Lanka, 8.00%, 11/01/19 LKA LKR 1,562,052 0.013,340,000 Government of Ghana, 21.00%, 03/23/20 GHA GHS 796,383 0.00

418,000 Government of El Salvador, senior bond, Reg S, 7.65%, 06/15/35 SLV USD 387,049 0.00






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Government and Municipal Bonds (continued)322,754 Peru Enhanced Pass-Through Finance Ltd., senior secured bond, A-1, Reg S,

zero cpn., 05/31/18 PER USD 313,164 0.00

12,884,607,092 68.15

Securities Maturing Within One Year177,227,100 Government of Mexico, senior note, M, 5.00%, 06/15/17 MEX MXN 849,982,402 4.50736,744,940 Mexico Treasury Bill, 0.00%, 05/25/17 MEX MXN 346,582,073 1.83335,000,000 FHLB, 0.00%, 01/04/17 USA USD 334,996,650 1.77

1,455,950,000 Government of Malaysia, senior note, 3.394%, 03/15/17 MYS MYR 324,833,285 1.72610,375,690 Mexico Treasury Bill, 0.00%, 03/30/17 MEX MXN 290,034,421 1.53443,006,370 Mexico Treasury Bill, 0.00%, 04/12/17 MEX MXN 210,041,335 1.11369,915,680 Mexico Treasury Bill, 0.00%, 07/20/17 MEX MXN 172,302,642 0.91

181,464,300,000 Korea Treasury Bond, senior note, 2.00%, 12/10/17 KOR KRW 150,890,197 0.80150,000,000 FHLB, 0.00%, 01/03/17 USA USD 150,000,000 0.79316,994,460 Mexico Treasury Bill, 0.00%, 11/09/17 MEX MXN 144,824,398 0.77583,624,000 Government of Ghana, 23.00%, 08/21/17 GHA GHS 136,411,728 0.72

3,632,708,000 Uruguay Treasury Bill, Strip, 04/03/17 URY UYU 119,380,757 0.63108,250,000 FHLB, 0.00%, 01/05/17 USA USD 108,247,727 0.57

93,700,000 FHLB, 0.00%, 01/06/17 USA USD 93,697,095 0.50169,326,710 Mexico Treasury Bill, 0.00%, 07/06/17 MEX MXN 79,073,026 0.42322,360,000 Government of Malaysia, senior note, 3.314%, 10/31/17 MYS MYR 71,941,755 0.38

2,007,350,000 Uruguay Treasury Bill, Strip, 02/10/17 URY UYU 67,360,026 0.36135,314,930 Mexico Treasury Bill, 0.00%, 03/02/17 MEX MXN 64,604,135 0.34249,530,000 Government of Ghana, 24.44%, 05/29/17 GHA GHS 58,512,212 0.31254,356,000 Government of Malaysia, senior note, 4.012%, 09/15/17 MYS MYR 57,044,124 0.30

1,733,130,000 Uruguay Treasury Bill, Strip, 05/19/17 URY UYU 55,950,697 0.3096,736,970 Mexico Treasury Bill, 0.00%, 02/16/17 MEX MXN 46,294,350 0.2597,540,180 Mexico Treasury Bill, 0.00%, 05/11/17 MEX MXN 46,013,131 0.2488,696,260 Mexico Treasury Bill, 0.00%, 09/14/17 MEX MXN 40,909,525 0.2285,277,400 Mexico Treasury Bill, 0.00%, 03/16/17 MEX MXN 40,616,158 0.21

167,190,000 Government of Ghana, 23.00%, 02/13/17 GHA GHS 38,838,193 0.21827,150,000 Uruguay Notas del Tesoro, 11.00%, 03/21/17 URY UYU 28,207,239 0.15

1,257,400,000 Philippine Treasury Bill, 0.00%, 05/03/17 PHL PHP 25,225,095 0.1352,982,500 Mexico Treasury Bill, 0.00%, 04/27/17 MEX MXN 25,055,030 0.13

1,120,640,000 Philippine Treasury Bill, 0.00%, 01/18/17 PHL PHP 22,574,538 0.1278,620,000 Government of Ghana, 25.40%, 07/31/17 GHA GHS 18,599,624 0.1075,300,000 Malaysia Treasury Bill, 0.00%, 01/20/17 MYS MYR 16,762,055 0.09

746,120,000 Philippine Treasury Bill, 0.00%, 02/22/17 PHL PHP 15,007,896 0.082,291,300,000 Government of Sri Lanka, B, 5.80%, 07/15/17 LKA LKR 14,947,750 0.08

2,931,602 Mexican Udibonos, Index Linked, 3.50%, 12/14/17 MEX MXN 14,475,282 0.0860,760,000 Ghana Treasury Note, 23.95%, 11/06/17 GHA GHS 14,331,030 0.0859,660,000 Ghana Treasury Note, 23.30%, 12/11/17 GHA GHS 14,031,103 0.07

678,680,000 Government of the Philippines, senior note, 3-21, 2.875%, 05/22/17 PHL PHP 13,697,588 0.07621,990,000 Philippine Treasury Bill, 0.00%, 09/27/17 PHL PHP 12,370,496 0.07583,150,000 Philippine Treasury Bill, 0.00%, 05/17/17 PHL PHP 11,671,230 0.06504,050,000 Philippine Treasury Bill, 0.00%, 06/07/17 PHL PHP 10,088,692 0.05

28,164,000,000 Colombian Tes Corto Plazo, Strip, 09/12/17 COL COP 8,955,814 0.05174,930,000 Toyota Motor Credit Corp., senior note, zero cpn., 02/15/17 USA MXN 8,344,944 0.04

35,060,000 Ghana Treasury Note, 24.25%, 10/09/17 GHA GHS 8,272,694 0.04367,050,000 Philippine Treasury Bill, 0.00%, 03/29/17 PHL PHP 7,371,406 0.04

21,665,000,000 Colombian Tes Corto Plazo, Strip, 06/13/17 COL COP 6,999,736 0.04323,910,000 Philippine Treasury Bill, 0.00%, 03/15/17 PHL PHP 6,509,910 0.03269,280,000 Philippine Treasury Bill, 0.00%, 02/15/17 PHL PHP 5,419,287 0.03217,820,000 Philippine Treasury Bill, 0.00%, 02/08/17 PHL PHP 4,384,937 0.02

17,600,000 Government of Ghana, 26.00%, 06/05/17 GHA GHS 4,154,336 0.028,666,000,000 Colombian Tes Corto Plazo, Strip, 03/14/17 COL COP 2,846,588 0.02

53,452,000 Rabobank Nederland, senior note, 8.75%, 01/24/17 NLD MXN 2,580,188 0.0131,550,000,000 Government of Indonesia, FR28, 10.00%, 07/15/17 IDN IDR 2,385,716 0.01

8,680,000 Government of Ghana, 25.48%, 04/24/17 GHA GHS 2,035,966 0.0189,750,000 Philippine Treasury Bill, 0.00%, 04/19/17 PHL PHP 1,801,546 0.0150,260,000 Philippine Treasury Bill, 0.00%, 03/08/17 PHL PHP 1,010,467 0.01

350,000 Gaz Capital SA, (OJSC Gazprom), loan participation, senior bond, Reg S,5.136%, 03/22/17 RUS EUR 372,398 0.00

4,429,872,623 23.43

TOTAL BONDS 17,380,842,906 91.93


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETWARRANTSSpecialty Retail

157,594,096 Edcon Holdings Ltd., wts., 02/20/49 ** ZAF EUR 0 0.00







Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


15,000,000 NewPage Corp., Escrow Account ** USA USD 0 0.00

TOTAL BONDS 0 0.00



^ All Edcon notes held by the fund were blocked and subject to the terms of a lock up agreement dated October 03, 2016 pursuant to which the parties agreed on theterms of a financial restructuring. On December 13, 2016 South African compromises pursuant to section 155 of the South African Companies Act were proposed to theSenior Secured Creditors and the Super Senior Third Ranking Creditors. On December 30, 2016, the Edcon group announced that all of the compromises were adopted atcompromise meetings by each class of the above creditors.* These Bonds are currently in default‡ Income may be received in additional securities and/or cash** These securities are submitted to a Fair Valuation






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


11,605,458 BAE Systems PLC GBR GBP 80,366,787 1.06

Air Freight & Logistics926,850 United Parcel Service Inc., B USA USD 100,982,787 1.33

Airlines9,864,650 Deutsche Lufthansa AG DEU EUR 121,039,255 1.60


Automobiles879,916 Hyundai Motor Co. KOR KRW 101,133,906 1.33

8,880,700 Nissan Motor Co. Ltd. JPN JPY 84,874,185 1.12

186,008,091 2.45

Banks3,163,640 Citigroup Inc. USA USD 178,687,639 2.361,671,310 JPMorgan Chase & Co. USA USD 137,062,674 1.812,352,800 SunTrust Banks Inc. USA USD 122,648,817 1.62

14,123,979 HSBC Holdings PLC GBR HKD 107,756,714 1.4213,710,802 Standard Chartered PLC GBR GBP 106,519,425 1.40

1,732,710 BNP Paribas SA FRA EUR 104,915,591 1.382,996,500 KB Financial Group Inc., ADR KOR USD 100,500,370 1.328,158,941 Credit Agricole SA FRA EUR 96,112,325 1.277,058,046 ING Groep NV NLD EUR 94,366,075 1.24

32,001,030 Barclays PLC GBR GBP 83,715,118 1.104,724,792 DBS Group Holdings Ltd. SGP SGD 53,776,798 0.716,534,206 UniCredit SpA ITA EUR 17,864,519 0.243,862,500 Bangkok Bank PCL, NVDR THA THB 16,332,089 0.21

194,493 KB Financial Group Inc. KOR KRW 6,553,155 0.09897,600 Bangkok Bank PCL, fgn. THA THB 3,842,978 0.05

1,230,654,287 16.22


1,644,920 Gilead Sciences Inc. USA USD 111,948,989 1.48181,990 Celgene Corp. USA USD 20,020,285 0.26

260,752,748 3.44

Capital Markets5,079,530 Credit Suisse Group AG CHE CHF 69,255,948 0.912,520,420 UBS Group AG CHE CHF 37,516,035 0.50

106,771,983 1.41

Chemicals1,116,956 Akzo Nobel NV NLD EUR 66,336,017 0.87

Commercial Services & Supplies7,477,745 Serco Group PLC GBR GBP 12,545,166 0.17

Communications Equipment3,507,600 Cisco Systems Inc. USA USD 100,740,996 1.33

15,458,402 Ericsson, B SWE SEK 86,285,906 1.13480,200 NetScout Systems Inc. USA USD 14,375,880 0.19

201,402,782 2.65

Construction Materials2,635,191 CRH PLC IRL EUR 86,842,719 1.14

Consumer Finance1,069,660 Capital One Financial Corp. USA USD 88,687,647 1.17

Diversified Telecommunication Services8,848,591 Telefonica SA ESP EUR 78,044,573 1.03

22,173,300 Singapore Telecommunications Ltd. SGP SGD 53,123,459 0.70112,846,000 China Telecom Corp. Ltd., H CHN HKD 49,512,758 0.65

180,680,790 2.38

Energy Equipment & Services1,261,837 Halliburton Co. USA USD 64,866,723 0.86

Food & Staples Retailing2,997,980 Metro AG DEU EUR 94,691,198 1.25

15,698,180 Tesco PLC GBR GBP 38,015,824 0.50

132,707,022 1.75

Health Care Equipment & Supplies3,801,170 Getinge AB, B SWE SEK 57,941,401 0.76

612,090 Medtronic PLC USA USD 41,436,203 0.55

99,377,604 1.31


— Templeton Growth (Euro) Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Health Care Providers & Services398,100 Cardinal Health Inc. USA USD 27,229,859 0.36201,500 AmerisourceBergen Corp. USA USD 14,973,661 0.20

42,203,520 0.56

Household Durables6,040,200 Panasonic Corp. JPN JPY 58,414,619 0.77



134,327,048 1.77

Insurance1,915,190 American International Group Inc. USA USD 118,875,750 1.574,179,425 AXA SA FRA EUR 100,243,509 1.32


380,647,007 5.02


112,200,145 1.48

Life Sciences Tools & Services1,581,200 QIAGEN NV NLD EUR 42,186,416 0.56

Machinery2,546,070 Navistar International Corp. USA USD 75,907,831 1.00

Media1,722,580 Comcast Corp., A USA USD 113,043,294 1.498,461,622 Sky PLC GBR GBP 98,171,822 1.302,681,980 Twenty-First Century Fox Inc., A USA USD 71,471,890 0.94

282,687,006 3.73

Metals & Mining4,574,784 MMC Norilsk Nickel PJSC, ADR RUS USD 73,000,025 0.96

13,312,274 Glencore PLC CHE GBP 43,225,497 0.571,053,500 Silver Wheaton Corp. CAN CAD 19,341,712 0.26

135,567,234 1.79

Multiline Retail2,987,380 Marks & Spencer Group PLC GBR GBP 12,241,034 0.16

Multi-Utilities2,950,990 innogy SE DEU EUR 97,412,180 1.28

Oil, Gas & Consumable Fuels7,247,355 Royal Dutch Shell PLC, B GBR GBP 199,731,043 2.63

21,447,927 BP PLC GBR GBP 127,960,025 1.697,413,009 Eni SpA ITA EUR 114,679,249 1.511,493,880 Apache Corp. USA USD 90,112,685 1.195,996,420 Galp Energia SGPS SA, B PRT EUR 85,089,200 1.121,214,190 ConocoPhillips USA USD 57,859,237 0.76

79,582,700 Kunlun Energy Co. Ltd. CHN HKD 56,571,095 0.751,139,090 Total SA, B FRA EUR 55,496,465 0.73

115,212 Royal Dutch Shell PLC, A GBR GBP 3,024,752 0.04

790,523,751 10.42

Pharmaceuticals4,390,963 Teva Pharmaceutical Industries Ltd., ADR ISR USD 151,275,818 1.99

596,097 Allergan PLC USA USD 118,975,799 1.571,284,160 Sanofi FRA EUR 98,751,904 1.30

411,480 Roche Holding AG CHE CHF 89,318,572 1.181,097,710 Eli Lilly & Co. USA USD 76,731,205 1.01

720,560 Merck KGaA DEU EUR 71,443,524 0.94

606,496,822 7.99

Semiconductors & Semiconductor Equipment1,515,420 First Solar Inc. USA USD 46,217,287 0.61

Software4,047,810 Oracle Corp. USA USD 147,917,032 1.952,410,550 Microsoft Corp. USA USD 142,360,372 1.88

290,277,404 3.83

Specialty Retail11,390,479 Kingfisher PLC GBR GBP 46,713,424 0.62

516,270 Tiffany & Co. USA USD 37,991,625 0.50

84,705,049 1.12






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Technology Hardware, Storage & Peripherals160,364 Samsung Electronics Co. Ltd. KOR KRW 227,491,081 3.00919,780 Apple Inc. USA USD 101,243,988 1.33

2,418,100 Hewlett Packard Enterprise Co. USA USD 53,178,898 0.704,078,939 Konica Minolta Inc. JPN JPY 38,502,171 0.512,754,000 Catcher Technology Co. Ltd. TWN TWD 18,065,033 0.24

438,481,171 5.78

Wireless Telecommunication Services1,726,600 SoftBank Group Corp. JPN JPY 109,003,133 1.446,469,554 Turkcell Iletisim Hizmetleri AS, ADR TUR USD 42,425,323 0.56

17,061,934 Vodafone Group PLC GBR GBP 39,920,134 0.521,898,000 China Mobile Ltd. CHN HKD 19,121,235 0.25

210,469,825 2.77

TOTAL SHARES 6,915,906,306 91.17



18,943 FTSMF Templeton China Opportunities Fund, Class F2 (acc) USD # LUX USD 6,675,966 0.09



83,570,000 Chesapeake Energy Corp., secured note, second lien, 144A, 8.00%, 12/15/22 USA USD 86,115,545 1.13

TOTAL BONDS 86,115,545 1.13



# This Fund is in the process of liquidation






Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


31,719 Hankook Tire Co. Ltd. KOR KRW 1,523,872 4.12

Automobiles15,680 Hyundai Motor Co. KOR KRW 1,896,269 5.1344,680 Kia Motors Corp. KOR KRW 1,452,626 3.93

3,348,895 9.06

Banks94,120 Shinhan Financial Group Co. Ltd. KOR KRW 3,527,780 9.54

1 DGB Financial Group Inc. KOR KRW 8 0.00

3,527,788 9.54

Biotechnology115,830 Hans Biomed Corp. KOR KRW 1,563,902 4.23

Chemicals5,490 LG Chem Ltd. KOR KRW 1,186,899 3.21

Construction & Engineering46,046 Daelim Industrial Co. Ltd. KOR KRW 3,322,088 8.9953,970 Hyundai Development Co-Engineering & Construction KOR KRW 2,009,477 5.44

190,822 Samsung Engineering Co. Ltd. KOR KRW 1,628,046 4.40

6,959,611 18.83

Electrical Equipment66,443 Doosan Heavy Industries & Construction Co. Ltd. KOR KRW 1,496,991 4.05

Food Products1,340 Orion Corp. KOR KRW 727,021 1.97

Internet & Direct Marketing Retail10,962 GS Home Shopping Inc. KOR KRW 1,561,778 4.23

Machinery451,006 Samsung Heavy Industries Co. Ltd. KOR KRW 3,455,613 9.35257,300 Doosan Infracore Co. Ltd. KOR KRW 1,879,790 5.09

5,335,403 14.44

Multiline Retail9,034 Lotte Shopping Co. Ltd. KOR KRW 1,657,505 4.48

Personal Products20,532 Cosmecca Korea Co. Ltd. KOR KRW 952,402 2.5811,249 Cosmecca Korea Co. Ltd., Reg S KOR KRW 521,798 1.41

1,474,200 3.99

Specialty Retail239,090 Kolao Holdings KOR KRW 1,588,315 4.30

Textiles, Apparel & Luxury Goods65,360 Youngone Corp. KOR KRW 1,659,371 4.4933,413 Youngone Holdings Co. Ltd. KOR KRW 1,646,772 4.46

2 Fila Korea Ltd. KOR KRW 117 0.00

3,306,260 8.95

TOTAL SHARES 35,258,440 95.40


TRANSFERABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCKEXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKETSHARESMachinery

438,860 Daewoo Shipbuilding & Marine Engineering Co. Ltd. ** KOR KRW 1,466,799 3.97






— Templeton Korea Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


228,739 Copa Holdings SA PAN USD 20,776,363 1.96

Auto Components23,543,700 Nemak SAB de CV MEX MXN 21,027,649 1.99

Banks30,298,944 Itausa-Investimentos Itau SA, pfd. BRA BRL 77,080,916 7.27

6,371,950 Itau Unibanco Holding SA, ADR, pfd. BRA USD 65,503,646 6.187,124,370 Banco Bradesco SA, ADR, pfd. BRA USD 62,053,263 5.868,882,868 Grupo Financiero Banorte SAB de CV MEX MXN 43,823,177 4.141,072,891 Intercorp Financial Services Inc., Reg S PER USD 34,332,512 3.24

213,400 Credicorp Ltd. PER USD 33,687,324 3.18385,702 Bancolombia SA, ADR COL USD 14,147,549 1.33494,990 Banco Santander Chile, ADR CHL USD 10,825,431 1.02291,500 BBVA Banco Frances SA, ADR ARG USD 5,080,845 0.48

346,534,663 32.70

Beverages9,528,147 Ambev SA BRA BRL 48,011,064 4.531,599,781 Cia Cervecerias Unidas SA, ADR CHL USD 33,563,406 3.177,329,929 Embotelladora Andina SA, pfd., A CHL CLP 25,049,765 2.362,129,000 Coca-Cola FEMSA SA de CV, L MEX MXN 13,487,979 1.27

120,112,214 11.33

Capital Markets10,956,400 BM&F BOVESPA SA BRA BRL 55,544,474 5.2426,566,398 Bolsa Mexicana de Valores SAB de CV MEX MXN 34,963,204 3.30

90,507,678 8.54

Chemicals215,588 Sociedad Quimica y Minera de Chile SA, ADR, pfd., B CHL USD 6,176,596 0.58

Commercial Services & Supplies1,252,000 Valid Solucoes E Servicos DE Seguranca EM Meios DE Pagamento E Identificacao SA BRA BRL 9,474,532 0.89

Diversified Consumer Services3,430,500 Kroton Educacional SA BRA BRL 14,050,009 1.33

Diversified Financial Services15,392,787 Credito Real SAB de CV SOFOM ER MEX MXN 20,309,927 1.92

Diversified Telecommunication Services461,700 Telecom Argentina SA, B, ADR ARG USD 8,389,089 0.79

Electric Utilities909,100 Energisa SA BRA BRL 5,189,750 0.49

Energy Equipment & Services1,110,439 Tenaris SA, ADR ARG USD 39,653,777 3.74

Food & Staples Retailing25,400,323 Wal-Mart de Mexico SAB de CV, V MEX MXN 45,383,969 4.28

300,000 Companhia Brasileira de Distribuicao, pfd., A BRA BRL 5,046,548 0.48

50,430,517 4.76

Food Products2,761,600 BRF SA BRA BRL 40,939,933 3.862,706,316 Grupo Herdez SAB de CV MEX MXN 4,915,117 0.47

45,855,050 4.33

Insurance1,750,879 FPC Par Corretora de Seguros SA BRA BRL 7,240,861 0.68

Metals & Mining17,629,500 Grupo Mexico SAB de CV, B MEX MXN 47,976,113 4.53

1,265,681 Ternium SA, ADR ARG USD 30,566,196 2.8816,216,600 Metalurgica Gerdau SA, pfd. BRA BRL 23,916,085 2.26

710,850 Compania de Minas Buenaventura SA, ADR PER USD 8,018,388 0.76

110,476,782 10.43

Multiline Retail13,113,810 Lojas Americanas SA BRA BRL 50,244,020 4.74

3,039,400 Grupo Sanborns SAB de CV MEX MXN 3,179,233 0.30

53,423,253 5.04

Oil, Gas & Consumable Fuels265,400 Ultrapar Participacoes SA BRA BRL 5,581,660 0.53198,000 YPF Sociedad Anonima, D, ADR ARG USD 3,267,000 0.31

8,848,660 0.84

Pharmaceuticals704,352 Hypermarcas SA BRA BRL 5,654,812 0.53


— Templeton Latin America Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Road & Rail2,409,758 Localiza Rent a Car SA BRA BRL 25,336,258 2.39

Software2,230,550 Totvs SA BRA BRL 16,475,381 1.56

Transportation Infrastructure1,279,300 CCR SA BRA BRL 6,273,275 0.59

Water Utilities8,553,176 Inversiones Aguas Metropolitanas SA CHL CLP 12,336,944 1.16

TOTAL SHARES 1,044,554,040 98.57




— Templeton Latin America Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets


13,393,260 JWD Infologistics PCL, fgn. THA THB 2,914,015 2.11

Airlines7,691,000 Bangkok Airways Co. Ltd., fgn. THA THB 4,869,894 3.52

Banks3,468,983 TISCO Financial Group PCL, fgn. THA THB 5,830,020 4.221,328,500 Siam Commercial Bank PCL, fgn. THA THB 5,651,220 4.091,014,900 Bangkok Bank PCL, NVDR THA THB 4,515,385 3.27

536,700 Kasikornbank PCL, fgn. THA THB 2,657,301 1.92506,300 Bangkok Bank PCL, fgn. THA THB 2,280,822 1.65

37,843,000 TMB Bank Public Co. Ltd., fgn. THA THB 2,216,745 1.601,250,400 Kiatnakin Bank PCL, fgn. THA THB 2,057,841 1.491,210,154 Krung Thai Bank PCL, fgn. THA THB 597,482 0.43

25,806,816 18.67

Beverages7,046,300 Thai Beverage PCL, fgn. THA SGD 4,136,581 2.99


Commercial Services & Supplies41,288,400 Better World Green PCL, fgn. THA THB 2,291,880 1.66

Construction & Engineering8,220,900 Unique Engineering & Construction PCL, fgn. THA THB 4,540,414 3.282,920,500 Sino-Thai Engineering & Construction PCL, fgn. THA THB 2,260,638 1.642,257,700 SCI Electric PCL, fgn. THA THB 724,227 0.52

7,525,279 5.44

Construction Materials149,396 Siam Cement PCL, fgn. THA THB 2,066,957 1.49

Consumer Finance392,600 AEON Thana Sinsap Thailand PCL, NVDR THA THB 1,133,447 0.82386,500 AEON Thana Sinsap Thailand PCL, fgn. THA THB 1,115,837 0.81

2,249,284 1.63

Electronic Equipment, Instruments & Components31,070,800 SVI PCL, fgn. THA THB 4,420,114 3.20

188,100 Delta Electronics Thailand PCL, fgn. THA THB 427,619 0.31

4,847,733 3.51

Food Products10,893,200 Bangkok Ranch PCL, fgn. THA THB 1,944,672 1.40

85,300 Malee Group PCL, fgn. THA THB 273,626 0.20

2,218,298 1.60

Health Care Providers & Services5,246,900 Bangkok Dusit Medical Services PCL, fgn. THA THB 3,380,848 2.445,714,725 Bangkok Chain Hospital PCL, fgn. THA THB 2,359,217 1.71

5,740,065 4.15

Hotels, Restaurants & Leisure4,807,300 MK Restaurants Group PCL, fgn. THA THB 7,844,548 5.68

32,294,700 The Erawan Group PCL, fgn. THA THB 4,053,728 2.932,108,600 Minor International PCL, fgn. THA THB 2,102,718 1.521,500,000 After You PCL, fgn. THA THB 514,645 0.37

239,700 Central Plaza Hotel PCL, fgn. THA THB 265,776 0.19

14,781,415 10.69

Insurance7,918,300 Thaire Life Assurance PCL THA THB 2,131,425 1.54

Media5,828,300 Major Cineplex Group PCL, fgn. THA THB 5,324,319 3.85

25,395,900 VGI Global Media PCL, fgn. THA THB 3,967,003 2.8733,515,400 Master Ad PCL, fgn. THA THB 1,131,203 0.82

647,270 BEC World PCL, fgn. THA THB 299,712 0.21

10,722,237 7.75

Metals & Mining17,814,200 Sahakol Equipment PCL, fgn. THA THB 2,047,266 1.48

Oil, Gas & Consumable Fuels1,104,452 PTT Exploration and Production PCL, fgn. THA THB 2,965,230 2.15

137,330 PTT PCL, fgn. THA THB 1,425,014 1.03

4,390,244 3.18

Pharmaceuticals706,500 Mega Lifesciences PCL, fgn. THA THB 497,605 0.36


— Templeton Thailand Fund —




Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Real Estate Management & Development16,666,667 Origin Property PCL, fgn. THA THB 3,719,201 2.6912,708,396 Land and Houses PCL, fgn. THA THB 3,456,258 2.5034,129,900 PACE Development Corp. PCL, fgn. THA THB 3,198,786 2.3130,365,983 Quality Houses PCL, fgn. THA THB 2,185,334 1.58

899,200 Amata Corp. PCL, fgn. THA THB 288,446 0.21

12,848,025 9.29

Specialty Retail4,433,100 Jubilee Enterprise PCL, fgn. THA THB 2,201,093 1.594,930,600 Home Product Center PCL, fgn. THA THB 1,402,848 1.02

3,603,941 2.61

Transportation Infrastructure211,200 Airports of Thailand PCL, fgn. THA THB 2,344,703 1.70

1,934,600 Namyong Terminal PCL, fgn. THA THB 777,078 0.56

3,121,781 2.26

Wireless Telecommunication Services1,915,300 Advanced Info Service PCL, fgn. THA THB 7,853,532 5.683,962,300 Intouch Holdings PCL, fgn. THA THB 5,498,589 3.98

13,352,121 9.66

TOTAL SHARES 134,888,249 97.56

WARRANTSReal Estate Management & Development

1,357,299 Land and Houses PCL, wts., 05/05/17 THA THB 232,842 0.17





— Templeton Thailand Fund —




CollateralThe following table reports the collateral held as at December 31, 2016 to reduce counterparty exposure on OTC derivatives.

Fund Counterparty Cash held ascollateral

Sovereign Bonds held ascollateral

Franklin Diversified Balanced Fund JPMorgan Chase Bank USD 110,000 -Franklin Diversified Conservative Fund JPMorgan Chase Bank USD 290,000 -Franklin Diversified Dynamic Fund JPMorgan Chase Bank USD 330,000 -Franklin European Dividend Fund Deutsche Bank EUR 20,000 -Franklin European Growth Fund Bank of America - USD 333,000

Barclays Bank USD 260,000 -Citibank USD 280,000 -Deutsche Bank EUR 257,000 -Goldman Sachs USD 240,000 -HSBC Bank - GBP 131,000JPMorgan Chase Bank - USD 405,000Morgan Stanley EUR 275,000 -

Franklin European Income Fund Deutsche Bank EUR 10,000 -Franklin European Total Return Fund Citibank USD 270,000 -Franklin Flexible Alpha Bond Fund Citibank USD 560,000 -

JPMorgan Chase Bank - USD 527,000Franklin Global Aggregate Bond Fund Barclays Bank USD 290,000 -

Citibank USD 300,000 -Franklin Global Fundamental Strategies Fund Bank of America USD 4,480,000 -

Barclays Bank USD 4,850,000 -Deutsche Bank USD 5,020,000 -Goldman Sachs USD 520,000 -HSBC Bank - GBP 2,826,000JPMorgan Chase Bank USD 7,190,000 -Standard Chartered USD 310,000 -

Franklin Global Multi-Asset Income Fund Deutsche Bank EUR 10,000 -Goldman Sachs EUR 10,000 -JPMorgan Chase Bank - USD 80,000

Franklin Gold and Precious Metals Fund Morgan Stanley USD 56,000 -Franklin K2 Alternative Strategies Fund Bank of America USD 10,000 -

JPMorgan Chase Bank USD 310,000 -Franklin MENA Fund Morgan Stanley USD 78,000 -Franklin Natural Resources Fund Deutsche Bank USD 10,000 -Franklin NextStep Balanced Growth Fund Bank of America USD 50,000 -Franklin NextStep Conservative Fund Bank of America USD 110,000 -Franklin NextStep Stable Growth Fund Bank of America USD 110,000 -Franklin Strategic Income Fund Barclays Bank USD 248,000 -

Credit Suisse International USD 1,370,000 -Deutsche Bank USD 3,100,000 -Goldman Sachs USD 240,000 -JPMorgan Chase Bank USD 3,370,000 -Morgan Stanley USD 148,000 -

Franklin U.S. Low Duration Fund Deutsche Bank USD 3,010,000 -Franklin U.S. Total Return Fund Deutsche Bank USD 670,000 -

JPMorgan Chase Bank USD 260,000 -Franklin Mutual Beacon Fund Morgan Stanley USD 67,000 -Franklin Mutual European Fund BNP Paribas USD 20,000 -

Goldman Sachs USD 60,000 -Morgan Stanley USD 40,000 -

Templeton Africa Fund Morgan Stanley USD 100,000 -Templeton Asian Bond Fund Bank of America USD 160,000 -

Barclays Bank USD 2,430,000 -Citibank USD 11,470,000 -Goldman Sachs USD 280,000 -JPMorgan Chase Bank - USD 13,489,000Morgan Stanley USD 5,670,000 -Standard Chartered USD 825,000 USD 1,392,000

Templeton Emerging Markets Fund Morgan Stanley USD 56,000 -Templeton Emerging Markets Balanced Fund Deutsche Bank USD 120,000 -


AdditionalInformation


Collateral (continued)

The following table reports the collateral held as at December 31, 2016 to reduce counterparty exposure on OTC derivatives.

Fund Counterparty Cash held ascollateral

Sovereign Bonds held ascollateral

Templeton Emerging Markets Bond Fund Bank of America USD 8,330,000 -Barclays Bank USD 15,110,000 -Deutsche Bank USD 3,670,000 -Goldman Sachs USD 4,230,000 -HSBC Bank - GBP 1,707,000JPMorgan Chase Bank - USD 5,901,000Standard Chartered USD 3,252,000 USD 3,770,000

Templeton Global Balanced Fund Goldman Sachs USD 130,000 -HSBC Bank - GBP 780,000Morgan Stanley USD 10,000 -

Templeton Global Bond Fund Bank of America USD 33,880,000 -Barclays Bank USD 111,140,000 -Citibank USD 15,430,000 -Goldman Sachs USD 103,790,000 -HSBC Bank - GBP 56,499,000JPMorgan Chase Bank USD 74,900,000 USD 97,438,000Morgan Stanley USD 81,650,000 -Standard Chartered USD 107,757,000 USD 62,642,000UBS USD 7,560,000 -

Templeton Global High Yield Fund Deutsche Bank USD 1,030,000 -Morgan Stanley USD 56,000 -

Templeton Global Income Fund Bank of America USD 1,160,000 -Barclays Bank USD 4,230,000 -Citibank USD 2,050,000 -Deutsche Bank USD 5,550,000 -Goldman Sachs USD 380,000 -HSBC Bank - GBP 781,000JPMorgan Chase Bank - USD 11,137,000

Templeton Global Total Return Fund Bank of America USD 42,020,000 -Barclays Bank USD 228,420,000 -Citibank USD 89,980,000 -Goldman Sachs USD 54,830,000 -JPMorgan Chase Bank USD 51,480,000 USD 203,818,000Morgan Stanley USD 30,450,000 -Standard Chartered USD 14,075,000 USD 21,742,000


Additional Information (continued)


Securities Financing Transactions (SFTs) and Total Return Swaps (TRS)Global data

Securities lending

Fund Currency Market value ofsecurities on loanin Fund currency

% oflendable securities

Franklin Biotechnology Discovery Fund USD 128,869,297 6.16Franklin Natural Resources Fund USD 1,828,410 0.51Franklin Technology Fund USD 13,137,810 1.54Franklin U.S. Opportunities Fund USD 6,274,900 0.21Franklin U.S. Small-Mid Cap Growth Fund USD 328,890 0.22

Total Return Swaps

Fund Currency Assets engagedin securities lending

in Fund currency

Assets engaged intotal return swapsin Fund currency

Total% of

net assets

Franklin Biotechnology Discovery Fund USD 128,869,297 - 5.90Franklin Diversified Balanced Fund EUR - 1,045,635 0.67Franklin Diversified Conservative Fund EUR - 767,331 0.35Franklin Diversified Dynamic Fund EUR - 440,763 0.59Franklin Flexible Alpha Bond Fund USD - 90,655 0.03Franklin Global Multi-Asset Income Fund EUR - 909,205 0.42Franklin K2 Alternative Strategies Fund USD - 24,109,706 2.31Franklin K2 Long Short Credit Fund USD - 25,710 0.05Franklin Natural Resources Fund USD 1,828,410 - 0.49Franklin Strategic Income Fund USD - 1,072,057 0.10Franklin Technology Fund USD 13,137,810 - 1.47Franklin U.S. Low Duration Fund USD - 44,710 0.01Franklin U.S. Opportunities Fund USD 6,274,900 - 0.21Franklin U.S. Small-Mid Cap Growth Fund USD 328,890 - 0.22Franklin U.S. Total Return Fund USD - 19,507 0.01

Concentration data

Securities lending, ten largest counterparties

Counterparty Market value ofsecurities on loan

(USD)

Amount of collateralreceived

(USD)

Barclays Bank 68,108,049 71,610,131Citibank 29,828,451 33,293,870Goldman Sachs 26,236,924 28,142,039Morgan Stanley 11,465,379 12,230,218UBS 8,058,114 9,140,095Merrill Lynch International 5,594,890 6,183,992Credit Suisse International 1,147,500 1,250,550

Total Return Swaps, ten largest counterparties

Counterparty Gross volume of TRS (1)

(USD)Amount of collateral *

received(USD)

Deutsche Bank 15,439,320 22,462,266Morgan Stanley 7,441,334 118,642,357Societe Generale 2,180,444 -JPMorgan Chase Bank 1,069,791 471,035,000Citibank 911,290 120,340,000Barclays Bank 554,125 366,978,000Goldman Sachs 439,943 164,709,504BNP Paribas 332,118 20,000

(1) absolute value of the unrealised gains/(losses)* Collateral amount may include collateral received in relation to OTC derivatives other than TRS, as collateral received on TRS is not separatelyidentifiable from collateral received on other OTC derivatives.




Securities Financing Transactions (SFTs) and Total Return Swaps (TRS) (continued)

Aggregate transaction data for each type of SFTs and TRS

Securities lending, detail on collateral

Type of collateral Maturity Currency Amount of collateral(USD)

Sovereign Bonds one week to one month EUR 39

above one year CAD 1,250,343EUR 15,324,854GBP 145,275,659

Total Return Swaps, detail on collateral

Type of collateral Maturity Currency Amount of collateral(USD)

Cash open maturity EUR 553,127USD 930,839,000

Sovereign Bonds three months to one year USD 11,001,000

above one year USD 321,794,000

* Collateral amount may include collateral received in relation to OTC derivatives other than TRS, as collateral received on TRS is not separatelyidentifiable from collateral received on other OTC derivatives.

Data on reuse of collateral

Collaterals received in relation to Securities lending and Total Return Swaps cannot be sold, re-invested or pledged.

Safekeeping of collateral received

Collateral in relation to Securities lending

Fund Fund currency Custodian Amount of collateralin Fund currency

Franklin Biotechnology Discovery Fund USD Goldman Sachs 138,251,789Franklin Natural Resources Fund USD Goldman Sachs 2,010,362Franklin Technology Fund USD Goldman Sachs 14,635,983Franklin U.S. Opportunities Fund USD Goldman Sachs 6,510,015Franklin U.S. Small-Mid Cap Growth Fund USD Goldman Sachs 442,746

Collateral in relation to Total Return Swaps

Fund Fund currency Custodian Amount of collateral *in Fund currency

Franklin Diversified Balanced Fund EUR JPMorgan Chase Bank 104,543Franklin Diversified Conservative Fund EUR JPMorgan Chase Bank 275,613Franklin Diversified Dynamic Fund EUR JPMorgan Chase Bank 313,629Franklin Flexible Alpha Bond Fund USD JPMorgan Chase Bank 1,087,000Franklin Global Multi-Asset Income Fund EUR JPMorgan Chase Bank 96,031Franklin K2 Alternative Strategies Fund USD JPMorgan Chase Bank 320,000Franklin Strategic Income Fund USD JPMorgan Chase Bank 8,476,000Franklin U.S. Low Duration Fund USD JPMorgan Chase Bank 3,010,000Franklin U.S. Total Return Fund USD JPMorgan Chase Bank 930,000

* Collateral amount may include collateral received in relation to OTC derivatives other than TRS, as collateral received on TRS is not separatelyidentifiable from collateral received on other OTC derivatives.




Further information regarding Franklin Templeton Investment Funds is available from the following Franklin Templeton Investments offices:

EUROPEBELGIUMFRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l.Belgian Branch Office28, avenue Marnix, 1000 BrusselsBelgiumTél: +32 2 289 62 00 Fax: +32 2 289 62 19www.franklintempleton.be

FRANCEFRANKLIN TEMPLETON FRANCE S.A.20, rue de la PaixF-75002 Paris, FranceTel: +33 (0)1 40 73 86 00 Fax: +33 (0)1 40 73 86 10www.franklintempleton.fr

GERMANY AND AUSTRIAFRANKLIN TEMPLETON INVESTMENT SERVICES GMBHMainzer Landstr. 16Postfach 11 18 0360325 Frankfurt am Main, GermanyTel: +49 (0) 69 272 23 0 Fax: +49 (0) 69 272 23 120Germany Freefone: 08 00 0 73 80 02Austria Freefone: 08 00 29 59 11www.franklintempleton.dewww.franklintempleton.at

ITALYFRANKLIN TEMPLETON ITALIA SIMCorso Italia n.120122 Milan, ItalyTel: +39 02 854 591 Fax: +39 02 854 59222Italy freefone: 800 915 919www.franklintempleton.it

LUXEMBOURGFRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l.8A, rue Albert Borschette, L-1246 LuxembourgB.P. 169, L-2011 LuxembourgGrand Duchy of LuxembourgTel: +352 46 66 67 1 Fax: +352 46 66 76www.franklintempleton.lu

THE NETHERLANDSFRANKLIN TEMPLETON INVESTMENTMANAGEMENT LIMITEDNetherlands Branch OfficeWorld Trade Center AmsterdamH-Toren 16e verdiepingZuidplein 1341077 XV Amsterdam, The NetherlandsTel: +31 (0) 20 575 2890 Fax: +31 (0) 20 575 2892Netherlands Freefone: 0800 256 8049www.franklintempleton.nl

POLANDFRANKLIN TEMPLETON INVESTMENT POLAND Sp. Z.o.o.Rondo ONZ 1, Floor 26th00-124 Warsaw, PolandTel: +48 22 337 13 50 Fax: +48 22 337 13 70www.franklintempleton.pl

SPAIN AND PORTUGALFRANKLIN TEMPLETON INVESTMENTMANAGEMENT LIMITEDSucursal en EspañaJosé Ortega y Gasset, 29-6º28006 Madrid, SpainTel: +34 91 426 3600 Fax: +34 91 577 1857www.franklintempleton.com.eswww.franklintempleton.com.pt

SWEDENFRANKLIN TEMPLETON INVESTMENTMANAGEMENT LIMITEDBirger Jarlsgatan 4SE-114 34 Stockholm, SwedenTel: +46 8 545 012 30 Fax: +46 8 545 012 39www.franklintempletonnordic.com

SWITZERLANDFRANKLIN TEMPLETON SWITZERLAND LTDStockerstrasse 38CH-8002 Zurich, SwitzerlandTel: +41 (0)44 217 81 81 Fax: +41 (0) 44 217 81 82www.franklintempleton.ch

UNITED KINGDOMLondonFRANKLIN TEMPLETON INVESTMENTMANAGEMENT LIMITEDThe Adelphi , 1-11 John Adam StreetLondon WC2N 6HT, UKTel: +44 (0) 20 7073 8500 Fax: +44 (0) 20 7073 8700UK Freefone: 0800 305 306www.franklintempleton.co.uk

EdinburghFRANKLIN TEMPLETON INVESTMENTMANAGEMENT LIMITED5 Morrison Street, Edinburgh EH3 8BH.Tel: +44 (0)131 242 4000 Fax: +44 (0)131 242 4533UK Freefone: 0800 305 306www.franklintempleton.co.uk

MIDDLE EAST AND AFRICASOUTH AFRICAFRANKLIN TEMPLETON INVESTMENTS SA (PTY) LTD.Kildare HouseThe Oval, 1 Oakdale RoadNewlands, Cape Town, 7700South AfricaTel: +27 11 341 2300 Fax: +27 11 484 2301www.franklintempleton.co.za

UNITED ARAB EMIRATESFRANKLIN TEMPLETON INVESTMENTS(ME) LIMITEDGate Building East Wing, 2nd FloorDubai International Financial CentreP.O. Box 506613Dubai, United Arab EmiratesTel: +971 (4) 428 4100 Fax: +971 (4) 428 4140www.franklintempletongem.com

ASIAHONG KONGFRANKLIN TEMPLETON INVESTMENTS(ASIA) LIMITED17/F Chater House, No. 8 Connaught Road CentralHong KongTel: 852 2877 7733 Fax: 852 2877 5401www.franklintempleton.com.hk

SINGAPORETEMPLETON ASSET MANAGEMENT LTD7 Temasek Boulevard#38-03 Suntec Tower OneSingapore 038987Tel: (65) 6241 2662 Fax: (65) 6332 2295www.franklintempleton.com.sg

TAIWANFRANKLIN TEMPLETON SECURITIES INVESTMENTCONSULTING (SINOAM) INC.*8th Floor, #87, Sec. 4Chung Hsiao East RoadTaipei, Taiwan, R.O.C.Tel: 886 2 2781 0088 Fax: 886 2 2781 7788www.franklin.com.tw

NORTH AMERICAUSAFRANKLIN TEMPLETON INVESTMENTS100 Fountain ParkwaySt. Petersburg, FL 33716Tel: 1 800 239 3894 Fax: 727 299 8736Email: [email protected]

SOUTH AMERICAARGENTINATEMPLETON ASSET MANAGEMENT LTDIngeniero Butty 220, 11th Floor(C1001 AFB) Buenos Aires, ArgentinaTel: 54 11 4313 0848 Fax: 54 11 4313 0885

* Master agent appointed in Taiwan for FTIF to be offered and sold tothe public in Taiwan.


Franklin Templeton Investments Office Directory

Please note that the websites mentioned above are directed at residents within the country stated on these websites. (Please refer to the website disclaimers).


Unaudited Semi-Annual ReportDecember 31, 2016

R.C.S. B35177

SOCIÉTÉ D’INVESTISSEMENT À CAPITAL VARIABLE

Franklin Templeton International Services S.à r.l.8A, rue Albert BorschetteL-1246 LuxembourgGrand Duchy of Luxembourgtel +352 (46) 66-67-1fax +352 (46) 66-76

FTIF SAR RGBR 12/16

Franklin Templeton Investment Funds