6. Fair
Value
Measurements
The Fund
follows a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
May
31,
2020,
in
valuing
the Fund's
assets
carried
at
fair
value,
is
as
follows:
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period.
Level
1
Level
2
Level
3
Total
Templeton
Global
Smaller
Companies
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Bahamas
............................
$
9,668,036
$
—
$
—
$
9,668,036
Belgium
.............................
—
11,793,612
—
11,793,612
Brazil
...............................
16,506,823
—
—
16,506,823
Canada
.............................
23,083,802
—
—
23,083,802
China
...............................
7,762,687
—
—
7,762,687
Denmark
............................
—
4,976,084
—
4,976,084
Finland
..............................
22,375,213
—
—
22,375,213
France
..............................
—
7,306,813
—
7,306,813
Germany
............................
—
49,930,612
—
49,930,612
Hong
Kong
...........................
30,948,394
—
—
30,948,394
India
................................
—
948,201
—
948,201
Indonesia
............................
—
—
458,880
458,880
Italy
................................
—
45,422,447
—
45,422,447
Japan
...............................
139,984,135
—
—
139,984,135
Netherlands
..........................
—
19,269,297
—
19,269,297
South
Korea
..........................
11,315,558
—
—
11,315,558
Spain
...............................
—
4,197,192
—
4,197,192
Sweden
.............................
—
46,122,715
—
46,122,715
Switzerland
...........................
17,663,785
33,659,340
—
51,323,125
Taiwan
..............................
74,933,226
—
—
74,933,226
United
Kingdom
.......................
7,669,603
26,283,908
—
33,953,511
United
States
.........................
280,296,407
—
—
280,296,407
Management
Investment
Companies
.........
4,840,109
—
—
4,840,109
Preferred
Stocks
........................
4,949,611
—
—
4,949,611
Warrants
..............................
379,957
—
—
379,957
Private
Limited
Partnership
Funds
............
16,886,337
—
—
16,886,337
Short
Term
Investments
...................
13,267,085
28,500,000
—
41,767,085
Total
Investments
in
Securities
...........
$682,530,768
$278,410,221
$458,880
$961,399,869