NPORT-EX 1 Templeton_Dragon_Fund_Inc.htm
Templeton Dragon Fund, Inc.
Consolidated Statement of Investments, March 31, 2019 (unaudited)
    Country Shares   Value
  Common Stocks 98.0%        
  Auto Components 0.4%        
a
Fuyao Glass Industry Group Co. Ltd., A
China    447,456   $  1,621,949
 
Weifu High-Technology Co. Ltd., B
China    566,721     1,210,697
b
Xinchen China Power Holdings Ltd.
China  1,900,000       102,867
          2,935,513
  Automobiles 2.4%        
 
Chongqing Changan Automobile Co. Ltd., B
China  5,357,619     2,846,040
 
Dongfeng Motor Group Co. Ltd., H
China  9,654,000     9,666,360
 
Jiangling Motors Corp. Ltd., B
China  4,836,708     5,995,091
          18,507,491
  Banks 9.5%        
a
Bank of Ningbo Co. Ltd., A
China  2,345,100     7,420,971
 
China Construction Bank Corp., H
China 29,282,272    25,104,579
a
China Merchants Bank Co. Ltd., A
China  3,525,546    17,816,691
a
Industrial and Commercial Bank of China Ltd., A
China  8,958,218     7,433,984
 
Industrial and Commercial Bank of China Ltd., H
China 20,157,155    14,764,889
          72,541,114
  Beverages 2.6%        
a
Kweichow Moutai Co. Ltd., A
China     80,819    10,282,793
a
Wuliangye Yibin Co. Ltd., A
China    692,600     9,802,817
          20,085,610
  Capital Markets 0.9%        
 
China Everbright Ltd.
China  1,524,000     3,020,840
a
GF Securities Co. Ltd., A
China  1,520,135     3,662,157
          6,682,997
  Communications Equipment 0.2%        
a
Hytera Communications Corp. Ltd., A
China    616,900     1,007,326
a
Shenzhen Sunway Communication Co. Ltd., A
China    204,000       875,929
          1,883,255
  Electric Utilities 0.7%        
 
CK Infrastructure Holdings Ltd.
Hong Kong    642,600     5,275,902
  Electrical Equipment 1.6%        
a
Guoxuan High-Tech Co. Ltd., A
China    205,900       539,594
a
Luxshare Precision Industry Co. Ltd., A
China  3,139,700    11,600,712
          12,140,306
  Electronic Equipment, Instruments & Components 3.0%        
a
AVIC Jonhon Optronic Technology Co. Ltd., A
China  1,237,377     7,492,048
a
BOE Technology Group Co. Ltd., A
China  4,227,300     2,456,250
 
Flytech Technology Co. Ltd.
Taiwan    405,000     1,025,100
a
Hangzhou Hikvision Digital Technology Co. Ltd., A
China  1,422,300     7,431,420
a
Leyard Optoelectronic Co. Ltd., A
China  3,418,800     4,523,051
          22,927,869
  Entertainment 1.5%        
a
Ciwen Media Co. Ltd., A
China    137,620       221,232
 
Poly Culture Group Corp. Ltd., H
China  1,083,500     1,518,290
a
Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co. Ltd., A
China    368,300       762,713
a
Zhejiang Huace Film & TV Co. Ltd., A
China  7,305,953     8,707,865
          11,210,100
Quarterly Statement of Investments  |  See Notes to Consolidated Statement of Investments.  |  1
Templeton Dragon Fund, Inc.
CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)
    Country Shares   Value
  Common Stocks (continued)        
  Food & Staples Retailing 2.6%        
 
Beijing Jingkelong Co. Ltd., H
China  3,959,929   $    807,124
 
Dairy Farm International Holdings Ltd.
Hong Kong  2,225,678    18,673,439
          19,480,563
  Food Products 3.8%        
a
Henan Shuanghui Investment & Development Co. Ltd., A
China    659,446     2,539,713
 
Uni-President China Holdings Ltd.
China 24,224,700    23,761,959
 
Uni-President Enterprises Corp.
Taiwan  1,181,831     2,864,952
          29,166,624
  Health Care Equipment & Supplies 1.1%        
 
Ginko International Co. Ltd.
Taiwan  1,112,000     8,396,941
  Health Care Providers & Services 1.7%        
a
China National Accord Medicines Corp. Ltd., A
China    671,601     5,152,038
a
Huadong Medicine Co. Ltd., A
China    918,902     4,467,156
 
Sinopharm Group Co. Ltd., H
China    882,000     3,674,087
          13,293,281
  Hotels, Restaurants & Leisure 0.4%        
a
Huangshan Tourism Development Co. Ltd., A
China  1,511,646     2,675,539
  Household Durables 1.7%        
a
Gree Electric Appliances Inc. of Zhuhai, A
China    343,576     2,416,583
a
Midea Group Co. Ltd., A
China  1,353,016     9,823,000
a
Qingdao Haier Co. Ltd., A
China    399,400     1,018,129
          13,257,712
  Independent Power & Renewable Electricity Producers 0.2%        
a
China Yangtze Power Co. Ltd., A
China    747,164     1,877,914
  Industrial Conglomerates 1.6%        
 
CK Hutchison Holdings Ltd.
Hong Kong    366,000     3,844,190
 
Hopewell Holdings Ltd.
Hong Kong  1,746,600     8,588,432
          12,432,622
  Insurance 7.8%        
 
AIA Group Ltd.
Hong Kong  3,234,980    32,205,771
 
China Life Insurance Co. Ltd., H
China  3,240,000     8,708,845
a
Ping An Insurance (Group) Co. of China Ltd., A
China  1,597,150    18,346,148
          59,260,764
  Interactive Media & Services 10.0%        
b
Baidu Inc., ADR
China     45,100     7,434,735
 
Tencent Holdings Ltd.
China  1,494,700    68,737,597
          76,172,332
  Internet & Direct Marketing Retail 8.9%        
b
Alibaba Group Holding Ltd., ADR
China    335,010    61,122,574
b
Ctrip.com International Ltd., ADR
China    145,300     6,348,157
          67,470,731
  IT Services 1.8%        
 
TravelSky Technology Ltd., H
China  5,222,059    13,803,620
  Machinery 1.2%        
a
Shenzhen Inovance Technology Co. Ltd., A
China  1,113,700     4,352,225
a
Zhengzhou Yutong Bus Co. Ltd., A
China  2,262,802     4,527,593
          8,879,818
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Templeton Dragon Fund, Inc.
CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)
    Country Shares   Value
  Common Stocks (continued)        
  Marine 0.6%        
 
COSCO Shipping Energy Transportation Co. Ltd., H
China  7,648,000   $  4,384,232
  Oil, Gas & Consumable Fuels 6.5%        
 
China Petroleum & Chemical Corp., H
China 38,185,000    30,110,402
 
CNOOC Ltd.
China  4,418,800     8,274,748
 
PetroChina Co. Ltd., H
China 17,219,500    11,165,326
          49,550,476
  Paper & Forest Products 1.3%        
 
Nine Dragons Paper Holdings Ltd.
China 10,151,301     9,672,894
  Pharmaceuticals 3.6%        
a
Jiangsu Hengrui Medicine Co. Ltd., A
China  2,043,743    19,919,647
a
Kangmei Pharmaceutical Co. Ltd., A
China  2,082,383     3,242,065
 
Tong Ren Tang Technologies Co. Ltd., H
China  1,636,300     2,197,033
a
Yifan Pharmaceutical Co. Ltd., A
China    910,200     1,796,791
          27,155,536
  Real Estate Management & Development 1.4%        
a
China Merchants Shekou Industrial Zone Holdings Co. Ltd., A
China    834,000     2,862,815
 
China Overseas Land & Investment Ltd.
China  1,352,000     5,132,466
 
CK Asset Holdings Ltd.
Hong Kong    284,000     2,525,265
          10,520,546
  Semiconductors & Semiconductor Equipment 10.1%        
 
Taiwan Semiconductor Manufacturing Co. Ltd.
Taiwan  9,713,136    77,280,752
  Software 0.6%        
a
Beijing Thunisoft Corp. Ltd., A
China  1,522,000     4,823,108
  Textiles, Apparel & Luxury Goods 5.1%        
 
Anta Sports Products Ltd.
China  5,680,200    38,640,078
  Transportation Infrastructure 1.0%        
 
COSCO Shipping Ports Ltd.
China  7,066,174     7,633,317
  Wireless Telecommunication Services 2.2%        
 
China Mobile Ltd.
China  1,632,500    16,637,049
 
Total Common Stocks (Cost $397,949,113)
      746,656,606
  Short Term Investments (Cost $8,722,326) 1.2%        
  Money Market Funds 1.2%        
c,d
Institutional Fiduciary Trust Money Market Portfolio, 2.10%
United States  8,722,326     8,722,326
 
Total Investments (Cost $406,671,439) 99.2%
      755,378,932
 
Other Assets, less Liabilities 0.8%
      6,200,919
 
Net Assets 100.0%
      $761,579,851
  
See Abbreviations on page 6.
aThe security is owned by Templeton China Opportunities Fund, Ltd., a wholly-owned subsidiary of the Fund. See Note 5.
bNon-income producing.
cSee  Note 4 regarding investments in affiliated management investment companies.
dThe rate shown is the annualized seven-day effective yield at period end.
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Templeton Dragon Fund, Inc.
Notes to Consolidated Statement of Investments (unaudited)
1.   ORGANIZATION
Templeton Dragon Fund, Inc. (Fund) is registered under the Investment Company Act of 1940 (1940 Act) as a closed-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). 
2.  FINANCIAL INSTRUMENT VALUATION
The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Directors (the Board), the Fund’s administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded, or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Investments in open-end mutual funds are valued at the closing NAV.
The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Fund’s business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, the VC monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.
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Templeton Dragon Fund, Inc.
Notes to Consolidated Statement of Investments (unaudited)
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, which could result in differences between the value of the Fund’s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes. 
3.  CONCENTRATION OF RISK
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local and regional economic, political and social conditions, which may result in greater market volatility. Current political and financial uncertainty surrounding the European Union may increase market volatility and the economic risk of investing in securities in Europe. In addition, certain foreign securities may not be as liquid as U.S. securities.
Investing in China A-shares may include certain risks and considerations not typically associated with investing in U.S. securities. In general, A-shares are issued by companies incorporated in the People’s Republic of China (PRC) and listed on the Shanghai and Shenzhen Stock Exchanges and available for investment by domestic (Chinese) investors and holders of a Qualified Foreign Institutional Investor (QFII) license and, in the case of certain eligible A-shares, through the Shanghai and Shenzhen Stock Connect programs. The Shanghai and Shenzhen Stock Exchanges are, however, substantially smaller, less liquid and more volatile than the major securities markets in the United States. 
4.  INVESTMENTS IN AFFILIATED MANAGEMENT INVESTMENT COMPANIES
The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. During the period ended March 31, 2019, the Fund held investments in affiliated management investment companies as follows:
  Number of
Shares Held
at Beginning
of Period 		Gross
Additions 		Gross
Reductions 		Number of
Shares
Held at End
of Period 		Value
at End
of Period 		Dividend
Income 		Realized
Gain (Loss) 		Net Change in
Unrealized
Appreciation
(Depreciation)
Non-Controlled Affiliates                
Institutional Fiduciary Trust Money Market Portfolio, 2.10%
539,399 11,168,465 (2,985,538) 8,722,326 $8,722,326 $24,073 $  — $  —
5.  INVESTMENTS IN TEMPLETON CHINA OPPORTUNITIES FUND, LTD. (China Fund)
The Fund invests in certain China A-shares through its investment in the China Fund. The China Fund is a Cayman Islands exempted company, and is a wholly-owned subsidiary of the Templeton Dragon Fund, and is able to invest directly in China A-shares consistent with the investment objective of the Templeton Dragon Fund. At March 31, 2019, the China Fund’s investments as well as any other assets and liabilities of the China Fund are reflected in the Fund’s Consolidated Statement of Investments. At March 31, 2019, the net assets of the China Fund were $199,518,971, representing 26.2% of the Fund’s consolidated net assets.
The China Fund gains access to the A-shares market through Templeton Investment Counsel, LLC (TIC), which serves as the registered QFII for the China Fund. Investment decisions related to the China Fund A-shares are specific to the Fund and it bears the resultant economic and tax consequences of its holdings and transactions in A-shares. The China Fund is subject to certain restrictions and administrative processes relating to its ability to repatriate cash balances, investment proceeds, and earnings associated with its A-shares and may incur substantial delays in gaining access to its assets or a loss of value in the event of noncompliance with applicable Chinese rules or requirements. 
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Templeton Dragon Fund, Inc.
Notes to Consolidated Statement of Investments (unaudited)
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 March 31, 2019, in valuing the Fund’s assets carried at fair value, is as follows:
  Level 1 Level 2 Level 3 Total
Assets:        
Investments in Securities:a        
Equity Investments:        
Machinery
$4,527,593 $4,352,225 $— $8,879,818
All Other Equity Investments
737,776,788 — — 737,776,788
Short Term Investments
8,722,326 — — 8,722,326
Total Investments in Securities
$751,026,707 $4,352,225 $ — $755,378,932
    
aFor detailed categories, see the accompanying Consolidated Statement of Investments. 
7.   SUBSEQUENT EVENTS
The Fund has evaluated subsequent events through the issuance of the Consolidated Statement of Investments and determined that no events have occurred that require disclosure. 
Abbreviations
Selected Portfolio
ADR American Depositary Receipt
  
For additional information on the Fund’s significant accounting policies, please refer to the Fund’s most recent semiannual or annual shareholder report.
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