Templeton Dragon Fund (TDF) NPORT-P Templeton Dragon Fund, Inc. (Sep 2021 report)

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

TLTDF-Q3PH

1

Consolidated

Statement

of

Investments

(unaudited)

Templeton

Dragon

Fund,

Inc.

2

Notes

to

Consolidated

Statement

of

Investments

6

Templeton

Dragon

Fund,

Inc.

Consolidated

Statement

of

Investments

(unaudited),

September

30,

2021

Quarterly

Consolidated

Statement

of

Investments

See

Notes

to

Consolidated

Statement

of

Investments.

2

l

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

99.3%

Air

Freight

&

Logistics

1.4%

a

SF

Holding

Co.

Ltd.,

A

..................................

China

884,700

$

8,942,210

Auto

Components

0.7%

Minth

Group

Ltd.

......................................

China

1,286,910

4,402,574

Automobiles

0.9%

Geely

Automobile

Holdings

Ltd.

...........................

China

565,135

1,622,271

b

NIO,

Inc.,

ADR

.......................................

China

122,175

4,353,095

5,975,366

Banks

5.2%

a

China

Merchants

Bank

Co.

Ltd.,

A

.........................

China

1,666,646

12,985,486

China

Merchants

Bank

Co.

Ltd.,

H

.........................

China

2,279,448

18,140,068

a

Ping

An

Bank

Co.

Ltd.,

A

................................

China

1,109,400

3,070,217

34,195,771

Beverages

4.7%

China

Resources

Beer

Holdings

Co.

Ltd.

....................

China

979,210

7,242,230

a

Kweichow

Moutai

Co.

Ltd.,

A

.............................

China

48,745

13,791,775

a

Luzhou

Laojiao

Co.

Ltd.,

A

...............................

China

193,756

6,665,889

a

Wuliangye

Yibin

Co.

Ltd.,

A

..............................

China

103,500

3,511,418

31,211,312

Biotechnology

8.1%

b,c

BeiGene

Ltd.

.........................................

China

431,969

12,334,693

a

Hualan

Biological

Engineering,

Inc.,

A

......................

China

865,505

3,734,735

b

I-Mab,

ADR

..........................................

China

105,893

7,676,184

b,d

InnoCare

Pharma

Ltd.,

144A,

Reg

S

.......................

China

2,763,400

7,401,140

b,d

Innovent

Biologics,

Inc.,

144A,

Reg

S

......................

China

1,886,372

18,166,121

a

Jinyu

Bio-Technology

Co.

Ltd.,

A

..........................

China

1,919,200

4,445,006

53,757,879

Capital

Markets

2.1%

a

East

Money

Information

Co.

Ltd.,

A

........................

China

1,522,560

8,069,627

Hong

Kong

Exchanges

&

Clearing

Ltd.

.....................

Hong

Kong

90,257

5,546,303

13,615,930

Chemicals

3.7%

a

Guangzhou

Tinci

Materials

Technology

Co.

Ltd.,

A

.............

China

842,540

19,766,427

a

Jiangsu

Yangnong

Chemical

Co.

Ltd.,

A

....................

China

313,900

5,087,046

24,853,473

Construction

Materials

1.9%

a

Beijing

Oriental

Yuhong

Waterproof

Technology

Co.

Ltd.,

A

......

China

1,797,600

12,288,464

Containers

&

Packaging

1.0%

a

Zhejiang

Jiemei

Electronic

&

Technology

Co.

Ltd.,

A

...........

China

1,557,600

6,863,143

Electrical

Equipment

4.5%

a

Contemporary

Amperex

Technology

Co.

Ltd.,

A

...............

China

66,700

5,416,948

a

Hongfa

Technology

Co.

Ltd.,

A

............................

China

1,238,435

11,961,943

a

Sunwoda

Electronic

Co.

Ltd.,

A

...........................

China

2,194,600

12,643,177

30,022,068

Electronic

Equipment,

Instruments

&

Components

1.1%

a

Luxshare

Precision

Industry

Co.

Ltd.,

A

.....................

China

1,360,238

7,480,530

Templeton

Dragon

Fund,

Inc.

Consolidated

Statement

of

Investments

(unaudited)

See

Notes

to

Consolidated

Statement

of

Investments.

Quarterly

Consolidated

Statement

of

Investments

3

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Entertainment

1.9%

b

Bilibili

,

Inc.,

ADR

......................................

China

33,494

$

2,216,298

NetEase

,

Inc.

........................................

China

632,379

10,700,053

12,916,351

Food

&

Staples

Retailing

0.7%

a

Laobaixing

Pharmacy

Chain

JSC,

A

.......................

China

646,360

4,698,389

Food

Products

1.1%

a

Inner

Mongolia

Yili

Industrial

Group

Co.

Ltd.,

A

...............

China

1,276,300

7,452,366

Health

Care

Equipment

&

Supplies

1.3%

a

Shenzhen

Mindray

Bio-Medical

Electronics

Co.

Ltd.,

A

..........

China

149,301

8,933,688

Health

Care

Providers

&

Services

2.0%

a

Aier

Eye

Hospital

Group

Co.

Ltd.,

A

........................

China

928,631

7,672,253

a

China

National

Accord

Medicines

Corp.

Ltd.,

A

...............

China

383,600

2,065,132

b,d

New

Horizon

Health

Ltd.,

144A,

Reg

S

.....................

China

754,000

3,280,011

13,017,396

Hotels,

Restaurants

&

Leisure

1.2%

Yum

China

Holdings,

Inc.

...............................

China

140,578

8,168,988

Household

Durables

3.5%

a

Haier

Smart

Home

Co.

Ltd.,

A

............................

China

1,278,000

5,139,039

a

Midea

Group

Co.

Ltd.,

A

................................

China

1,266,716

13,653,287

a

Suofeiya

Home

Collection

Co.

Ltd.,

A

......................

China

1,801,700

4,632,076

23,424,402

Insurance

1.0%

a

Ping

An

Insurance

Group

Co.

of

China

Ltd.,

A

................

China

395,850

2,958,944

Ping

An

Insurance

Group

Co.

of

China

Ltd.,

H

................

China

546,927

3,740,616

6,699,560

Interactive

Media

&

Services

9.6%

b

Baidu,

Inc.,

ADR

......................................

China

53,981

8,299,579

b,c,d

Kuaishou

Technology,

144A,

Reg

S

........................

China

225,888

2,410,818

Tencent

Holdings

Ltd.

..................................

China

891,026

53,192,804

63,903,201

Internet

&

Direct

Marketing

Retail

13.1%

b

Alibaba

Group

Holding

Ltd.

..............................

China

2,207,788

40,874,594

b

JD.com,

Inc.,

A

.......................................

China

615,912

22,204,924

b,d

Meituan

Dianping

,

B,

144A,

Reg

S

........................

China

664,841

21,222,553

b

Vipshop

Holdings

Ltd.,

ADR

.............................

China

228,738

2,548,141

86,850,212

IT

Services

1.4%

b,c

GDS

Holdings

Ltd.,

ADR

................................

China

158,752

8,986,951

Life

Sciences

Tools

&

Services

6.0%

a

WuXi

AppTec

Co.

Ltd.,

A

................................

China

357,180

8,441,939

c,d

WuXi

AppTec

Co.

Ltd.,

H,

144A,

Reg

S

.....................

China

561,008

13,060,086

b,d

Wuxi

Biologics

Cayman,

Inc.,

144A,

Reg

S

..................

China

1,118,750

18,146,340

39,648,365

Machinery

3.1%

a

Jiangsu

Hengli

Hydraulic

Co.

Ltd.,

A

.......................

China

206,300

2,699,820

a

Shenzhen

Inovance

Technology

Co.

Ltd.,

A

..................

China

1,233,000

12,012,270

Templeton

Dragon

Fund,

Inc.

Consolidated

Statement

of

Investments

(unaudited)

Quarterly

Consolidated

Statement

of

Investments

See

Notes

to

Consolidated

Statement

of

Investments.

4

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Machinery

(continued)

Weichai

Power

Co.

Ltd.,

H

..............................

China

2,826,261

$

5,849,505

20,561,595

Media

0.4%

b,c,d

Mobvista

,

Inc.,

144A,

Reg

S

.............................

China

3,098,200

2,822,872

Metals

&

Mining

0.6%

c

China

Molybdenum

Co.

Ltd.,

H

...........................

China

6,516,000

4,022,791

Pharmaceuticals

0.4%

a

Jiangsu

Hengrui

Medicine

Co.

Ltd.,

A

......................

China

372,591

2,899,722

Real

Estate

Management

&

Development

3.4%

d

A-Living

Smart

City

Services

Co.

Ltd.,

H,

144A,

Reg

S

.........

China

2,629,448

9,337,718

China

Resources

Land

Ltd.

..............................

China

1,242,975

5,231,216

Country

Garden

Services

Holdings

Co.

Ltd.

..................

China

489,600

3,868,766

c,d

KWG

Living

Group

Holdings

Ltd.,

Reg

S

....................

China

2,758,892

2,037,775

d

Shimao

Services

Holdings

Ltd.,

144A,

Reg

S

.................

China

1,089,700

2,252,969

22,728,444

Semiconductors

&

Semiconductor

Equipment

6.3%

b

Daqo

New

Energy

Corp.,

ADR

...........................

China

79,428

4,527,396

b,d

Hua

Hong

Semiconductor

Ltd.,

144A,

Reg

S

.................

China

1,785,624

9,158,704

a

LONGi

Green

Energy

Technology

Co.

Ltd.,

A

.................

China

680,960

8,676,773

a

Sino

Wealth

Electronic

Ltd.,

A

............................

China

1,315,655

12,659,268

a

Will

Semiconductor

Co.

Ltd.

Shanghai,

A

....................

China

178,051

6,661,582

41,683,723

Software

0.5%

a

Hundsun

Technologies,

Inc.,

A

............................

China

394,555

3,515,672

Specialty

Retail

2.4%

a

China

Tourism

Group

Duty

Free

Corp.

Ltd.,

A

................

China

392,300

15,755,153

Textiles,

Apparel

&

Luxury

Goods

3.6%

ANTA

Sports

Products

Ltd.

..............................

China

1,272,875

24,036,157

Transportation

Infrastructure

0.5%

a,b

Shanghai

International

Airport

Co.

Ltd.,

A

....................

China

450,800

3,074,647

Total

Common

Stocks

(Cost

$406,943,142)

.....................................

659,409,365

Principal

Amount

*

Convertible

Bonds

0.0%

†

Electronic

Equipment,

Instruments

&

Components

0.0%

†

a

Luxshare

Precision

Industry

Co.

Ltd.

,

0.1

%

,

11/03/26

...........

China

583,100

CNY

102,489

Total

Convertible

Bonds

(Cost

$88,784)

........................................

102,489

Total

Long

Term

Investments

(Cost

$407,031,926)

...............................

659,511,854

a

Templeton

Dragon

Fund,

Inc.

Consolidated

Statement

of

Investments

(unaudited)

See

Notes

to

Consolidated

Statement

of

Investments.

Quarterly

Consolidated

Statement

of

Investments

5

Short

Term

Investments

0.2%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

0.2%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

1,463,675

$

1,463,675

Total

Money

Market

Funds

(Cost

$1,463,675)

...................................

1,463,675

Total

Short

Term

Investments

(Cost

$1,463,675

)

.................................

1,463,675

a

Total

Investments

(Cost

$408,495,601)

99.5%

...................................

$660,975,529

Other

Assets,

less

Liabilities

0.5%

.............................................

3,169,167

Net

Assets

100.0%

...........................................................

$664,144,696

See

Abbreviations

on

page

10

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

The

security

is

owned

by

Templeton

China

Opportunities

Fund,

Ltd.,

a

wholly-owned

subsidiary

of

the

Fund.

See

Note

6.

b

Non-income

producing.

c

A

portion

or

all

of

the

security

is

on

loan

at

September

30,

2021.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

September

30,

2021,

the

aggregate

value

of

these

securities

was

$109,297,107,

representing

16.5%

of

net

assets.

e

See

Note

5

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Statement

of

Investments

(unaudited)

6

1.

Organization

Templeton

Dragon

Fund,

Inc. (Trust)

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. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

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.

Events

can

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

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Statement

of

Investments

(unaudited)

7

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at 4

p.m

Eastern

time.

At

September

30,

2021,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

"market

level

fair

value").

See

the

Fair

Value

Measurements

note

for

more

information.

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

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,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

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.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

5.

Investments

in

Affiliated

Management

Investment

Companies 

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

During

the

period

ended

September

30,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows: 

2. Financial

Instrument

Valuation

(continued)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Statement

of

Investments

(unaudited)

8

6.

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 September

30,

2021,

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

September

30,

2021, the

net

assets

of

the

China

Fund

were

$284,344,239,

representing

42.8%

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. 

7. 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

September

30,

2021,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Dragon

Fund,

Inc.

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

$3,981,124

$143,527,183

$(146,044,632)

$—

$—

$1,463,675

1,463,675

$633

Total

Affiliated

Securities

...

$3,981,124

$143,527,183

$(146,044,632)

$—

$—

$1,463,675

$633

5.

Investments

in

Affiliated

Management

Investment

Companies 

(continued)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Statement

of

Investments

(unaudited)

9

Level

1

Level

2

Level

3

Total

Templeton

Dragon

Fund,

Inc.

Assets:

Investments

in

Securities:

Common

Stocks

:

Air

Freight

&

Logistics

...................

$

—

$

8,942,210

$

—

$

8,942,210

Auto

Components

......................

—

4,402,574

—

4,402,574

Automobiles

..........................

4,353,095

1,622,271

—

5,975,366

Banks

...............................

—

34,195,771

—

34,195,771

Beverages

...........................

—

31,211,312

—

31,211,312

Biotechnology

.........................

7,676,184

46,081,695

—

53,757,879

Capital

Markets

........................

—

13,615,930

—

13,615,930

Chemicals

...........................

—

24,853,473

—

24,853,473

Construction

Materials

..................

—

12,288,464

—

12,288,464

Containers

&

Packaging

.................

—

6,863,143

—

6,863,143

Electrical

Equipment

....................

—

30,022,068

—

30,022,068

Electronic

Equipment,

Instruments

&

Components

........................

—

7,480,530

—

7,480,530

Entertainment

.........................

2,216,298

10,700,053

—

12,916,351

Food

&

Staples

Retailing

.................

—

4,698,389

—

4,698,389

Food

Products

........................

—

7,452,366

—

7,452,366

Health

Care

Equipment

&

Supplies

.........

—

8,933,688

—

8,933,688

Health

Care

Providers

&

Services

..........

—

13,017,396

—

13,017,396

Hotels,

Restaurants

&

Leisure

.............

8,168,988

—

—

8,168,988

Household

Durables

....................

—

23,424,402

—

23,424,402

Insurance

............................

—

6,699,560

—

6,699,560

Interactive

Media

&

Services

..............

8,299,579

55,603,622

—

63,903,201

Internet

&

Direct

Marketing

Retail

..........

2,548,141

84,302,071

—

86,850,212

IT

Services

...........................

8,986,951

—

—

8,986,951

Life

Sciences

Tools

&

Services

............

—

39,648,365

—

39,648,365

Machinery

............................

—

20,561,595

—

20,561,595

Media

...............................

—

2,822,872

—

2,822,872

Metals

&

Mining

.......................

—

4,022,791

—

4,022,791

Pharmaceuticals

.......................

—

2,899,722

—

2,899,722

Real

Estate

Management

&

Development

....

—

22,728,444

—

22,728,444

Semiconductors

&

Semiconductor

Equipment

.

4,527,396

37,156,327

—

41,683,723

Software

.............................

—

3,515,672

—

3,515,672

Specialty

Retail

........................

—

15,755,153

—

15,755,153

Textiles,

Apparel

&

Luxury

Goods

..........

—

24,036,157

—

24,036,157

Transportation

Infrastructure

..............

—

3,074,647

—

3,074,647

Convertible

Bonds

.......................

102,489

—

—

102,489

Short

Term

Investments

...................

1,463,675

—

—

1,463,675

Total

Investments

in

Securities

...........

$48,342,796

$612,632,733

a

$—

$660,975,529

a

Includes

foreign

securities

valued

at

$612,632,733,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

7. Fair

Value

Measurements 

(continued)

Templeton

Dragon

Fund,

Inc.

Notes

to

Consolidated

Statement

of

Investments

(unaudited)

10

8.

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

Currency

CNY

Chinese

Yuan

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.