FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  
COMMON STOCKS - 99.1%      
COMMUNICATION SERVICES - 2.8%      

Diversified Telecommunication Services - 0.9%

      

EchoStar Corp., Class A Shares

      14,030      $ 231,074 * 

Iridium Communications Inc.

      12,878        571,397 * 
     

 

 

  

Total Diversified Telecommunication Services

         802,471  
     

 

 

  

Entertainment - 0.1%

      

Marcus Corp.

      8,418        116,926  
     

 

 

  

Interactive Media & Services - 1.1%

      

Angi Inc.

      51,513        151,963 * 

Cargurus Inc.

      12,025        170,394 * 

EverQuote Inc., Class A Shares

      3,073        20,958 * 

TrueCar Inc.

      73,491        110,972 * 

Yelp Inc.

      17,370        589,017 * 
     

 

 

  

Total Interactive Media & Services

         1,043,304  
     

 

 

  

Media - 0.4%

      

Gannett Co. Inc.

      53,448        81,775 * 

Perion Network Ltd.

      16,702        322,182 * 
     

 

 

  

Total Media

         403,957  
     

 

 

  

Wireless Telecommunication Services - 0.3%

      

Telephone & Data Systems Inc.

      7,883        109,574  

United States Cellular Corp.

      5,344        139,104 * 
     

 

 

  

Total Wireless Telecommunication Services

         248,678  
     

 

 

  

TOTAL COMMUNICATION SERVICES

         2,615,336  
     

 

 

  
CONSUMER DISCRETIONARY - 9.2%      

Auto Components - 0.9%

      

Goodyear Tire & Rubber Co.

      7,574        76,422 * 

Modine Manufacturing Co.

      30,000        388,200 * 

Patrick Industries Inc.

      4,009        175,755  

Standard Motor Products Inc.

      6,213        201,922  
     

 

 

  

Total Auto Components

         842,299  
     

 

 

  

Automobiles - 0.2%

      

Winnebago Industries Inc.

      4,076        216,884  
     

 

 

  

Diversified Consumer Services - 0.8%

      

2U Inc.

      35,700        223,125 * 

Perdoceo Education Corp.

      18,707        192,682 * 

Vivint Smart Home Inc.

      46,767        307,727 * 
     

 

 

  

Total Diversified Consumer Services

         723,534  
     

 

 

  

Hotels, Restaurants & Leisure - 1.8%

      

Bloomin’ Brands Inc.

      26,056        477,607  

Bluegreen Vacations Holding Corp.

      8,284        136,852  

 

See Notes to Schedule of Investments.

 

 

Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report    

  

 

 

1

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Hotels, Restaurants & Leisure - (continued)

      

Cracker Barrel Old Country Store Inc.

      802      $ 74,249  

Fiesta Restaurant Group Inc.

      10,622        67,343 * 

International Game Technology PLC

      20,000        316,000  

Penn Entertainment Inc.

      4,008        110,260 * 

Red Robin Gourmet Burgers Inc.

      3,741        25,177 * 

Ruth’s Hospitality Group Inc.

      10,021        168,954  

SeaWorld Entertainment Inc.

      6,000        273,060 * 
     

 

 

  

Total Hotels, Restaurants & Leisure

         1,649,502  
     

 

 

  

Household Durables - 2.0%

      

Beazer Homes USA Inc.

      44,094        426,389 * 

Ethan Allen Interiors Inc.

      12,693        268,330  

GoPro Inc., Class A Shares

      28,060        138,336 * 

M/I Homes Inc.

      6,948        251,726 * 

MDC Holdings Inc.

      4,676        128,216  

Meritage Homes Corp.

      6,014        422,603 * 

Tri Pointe Homes Inc.

      18,774        283,675 * 
     

 

 

  

Total Household Durables

         1,919,275  
     

 

 

  

Multiline Retail - 0.2%

      

Macy’s Inc.

      13,361        209,367  
     

 

 

  

Specialty Retail - 2.9%

      

Academy Sports & Outdoors Inc.

      12,693        535,391  

Dick’s Sporting Goods Inc.

      4,009        419,502  

Genesco Inc.

      4,143        162,903 * 

Hibbett Inc.

      6,681        332,780  

MarineMax Inc.

      9,687        288,576 * 

Signet Jewelers Ltd.

      8,686        496,752  

TravelCenters of America Inc.

      8,552        461,209 * 
     

 

 

  

Total Specialty Retail

         2,697,113  
     

 

 

  

Textiles, Apparel & Luxury Goods - 0.4%

      

Lakeland Industries Inc.

      11,357        130,946 * 

Movado Group Inc.

      9,353        263,568  
     

 

 

  

Total Textiles, Apparel & Luxury Goods

         394,514  
     

 

 

  

TOTAL CONSUMER DISCRETIONARY

         8,652,488  
     

 

 

  
CONSUMER STAPLES - 4.5%      

Beverages - 0.5%

      

Coca-Cola Consolidated Inc.

      1,203        495,311  
     

 

 

  

Food & Staples Retailing - 1.4%

      

SpartanNash Co.

      22,322        647,784  

United Natural Foods Inc.

      18,707        642,960 * 
     

 

 

  

Total Food & Staples Retailing

         1,290,744  
     

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

2

  

    Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report

  

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Food Products - 1.4%

      

Darling Ingredients Inc.

      10,000      $ 661,500 * 

John B Sanfilippo & Son Inc.

      4,009        303,602  

Simply Good Foods Co.

      11,357        363,310 * 
     

 

 

  

Total Food Products

         1,328,412  
     

 

 

  

Personal Products - 0.6%

      

Medifast Inc.

      2,873        311,318  

Nature’s Sunshine Products Inc.

      11,491        94,686 * 

USANA Health Sciences Inc.

      3,274        183,508 * 
     

 

 

  

Total Personal Products

         589,512  
     

 

 

  

Tobacco - 0.6%

      

Turning Point Brands Inc.

      7,349        156,019  

Vector Group Ltd.

      44,094        388,468  
     

 

 

  

Total Tobacco

         544,487  
     

 

 

  

TOTAL CONSUMER STAPLES

         4,248,466  
     

 

 

  
ENERGY - 6.3%      

Oil, Gas & Consumable Fuels - 6.3%

      

Chord Energy Corp.

      3,675        502,630  

Diamondback Energy Inc.

      5,011        603,625  

Golar LNG Ltd.

      19,375        482,825 * 

Laredo Petroleum Inc.

      3,000        188,550 * 

Murphy Oil Corp.

      20,043        704,912  

Ovintiv Inc.

      14,779        679,834  

PDC Energy Inc.

      4,343        250,982  

Ranger Oil Corp., Class A Shares

      20,043        630,352  

REX American Resources Corp.

      6,015        167,939 * 

SandRidge Energy Inc.

      53,448        871,737 * 

SM Energy Co.

      23,383        879,435  
     

 

 

  

TOTAL ENERGY

         5,962,821  
     

 

 

  
FINANCIALS - 16.5%      

Banks - 9.5%

      

Amerant Bancorp Inc.

      10,151        252,151  

Associated Banc-Corp.

      19,000        381,520  

Berkshire Hills Bancorp Inc.

      18,707        510,701  

Carter Bankshares Inc.

      30,022        483,354 * 

Central Pacific Financial Corp.

      11,491        237,749  

Community Trust Bancorp Inc.

      2,404        97,482  

Equity Bancshares Inc., Class A Shares

      9,554        283,085  

Financial Institutions Inc.

      10,021        241,205  

First BanCorp

      66,757        913,236  

First Commonwealth Financial Corp.

      21,810        280,040  

 

See Notes to Schedule of Investments.

 

 

Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report    

  

 

 

3

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Banks - (continued)

      

First Financial Corp.

      6,614      $ 298,887  

First Horizon Corp.

      26,724        611,980  

First Internet Bancorp

      6,013        203,600  

Flushing Financial Corp.

      20,043        388,233  

Hancock Whitney Corp.

      7,518        344,399  

Hanmi Financial Corp.

      36,745        870,121  

Heartland Financial USA Inc.

      3,674        159,305  

Heritage Financial Corp.

      8,685        229,892  

HomeStreet Inc.

      7,349        211,725  

HomeTrust Bancshares Inc.

      8,017        177,176  

Hope Bancorp Inc.

      32,269        407,880  

Midland States Bancorp Inc.

      14,221        335,189  

OFG Bancorp

      18,467        464,076  

Peoples Bancorp Inc.

      10,355        299,570  

Umpqua Holdings Corp.

      16,034        274,021  
     

 

 

  

Total Banks

         8,956,577  
     

 

 

  

Capital Markets - 0.6%

      

BGC Partners Inc., Class A Shares

      87,455        274,609  

CION Investment Corp.

      22,300        189,550  

Evercore Inc., Class A Shares

      1,336        109,886  
     

 

 

  

Total Capital Markets

         574,045  
     

 

 

  

Consumer Finance - 1.3%

      

Bread Financial Holdings Inc.

      3,674        115,547  

Enova International Inc.

      20,043        586,659 * 

LendingClub Corp.

      26,615        294,096 * 

Navient Corp.

      16,000        235,040  
     

 

 

  

Total Consumer Finance

         1,231,342  
     

 

 

  

Diversified Financial Services - 0.6%

      

Acacia Research Corp.

      47,700        192,708 * 

Jackson Financial Inc., Class A Shares

      11,800        327,450  
     

 

 

  

Total Diversified Financial Services

         520,158  
     

 

 

  

Insurance - 1.7%

      

Genworth Financial Inc., Class A Shares

      100,216        350,756 * 

ProAssurance Corp.

      12,025        234,608  

Safety Insurance Group Inc.

      5,212        425,091  

Stewart Information Services Corp.

      8,017        349,862  

United Fire Group Inc.

      9,487        272,561  
     

 

 

  

Total Insurance

         1,632,878  
     

 

 

  

Mortgage Real Estate Investment Trusts (REITs) - 0.2%

      

Redwood Trust Inc.

      36,918        211,909  
     

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

4

  

    Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report

  

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Thrifts & Mortgage Finance - 2.6%

      

Essent Group Ltd.

      5,151      $ 179,615  

Flagstar Bancorp Inc.

      10,021        334,701  

MGIC Investment Corp.

      44,763        573,862  

Mr. Cooper Group Inc.

      8,685        351,743 * 

NMI Holdings Inc., Class A Shares

      13,361        272,164 * 

Radian Group Inc.

      35,087        676,828  
     

 

 

  

Total Thrifts & Mortgage Finance

         2,388,913  
     

 

 

  

TOTAL FINANCIALS

         15,515,822  
     

 

 

  
HEALTH CARE - 17.7%      

Biotechnology - 8.4%

      

Abeona Therapeutics Inc.

      8,551        25,995 * 

ACADIA Pharmaceuticals Inc.

      18,200        297,752 * 

Achillion Pharmaceuticals Inc., CVR

      89,796        0 *(a)(b)(c) 

Actinium Pharmaceuticals Inc.

      20,000        147,600 * 

Aeglea BioTherapeutics Inc.

      30,064        15,814 * 

Agios Pharmaceuticals Inc.

      7,727        218,520 * 

Akebia Therapeutics Inc.

      80,173        25,351 * 

Alaunos Therapeutics Inc.

      128,783        221,507 * 

Alector Inc.

      14,297        135,250 * 

Alkermes PLC

      13,562        302,839 * 

AnaptysBio Inc.

      9,621        245,432 * 

Anika Therapeutics Inc.

      5,010        119,238 * 

Aptevo Therapeutics Inc.

      10,288        31,275 * 

Aravive Inc.

      24,853        20,310 * 

Arbutus Biopharma Corp.

      30,064        57,422 * 

Ardelyx Inc.

      200,432        238,514 * 

Arrowhead Pharmaceuticals Inc.

      1,669        55,160 * 

Assembly Biosciences Inc.

      36,745        60,262 * 

Atara Biotherapeutics Inc.

      20,043        75,763 * 

Beyondspring Inc.

      12,092        11,971 * 

Bluebird Bio Inc.

      23,000        145,590 * 

Calithera Biosciences Inc.

      4,342        12,765 * 

Caribou Biosciences Inc.

      14,030        148,016 * 

CASI Pharmaceuticals Inc.

      23,723        61,680 * 

Celldex Therapeutics Inc.

      1,900        53,409 * 

Cellectar Biosciences Inc.

      10,124        34,017 * 

Chimerix Inc.

      26,992        52,095 * 

Cyclerion Therapeutics Inc.

      75,786        65,176 * 

CytomX Therapeutics Inc.

      33,405        48,437 * 

Deciphera Pharmaceuticals Inc.

      8,685        160,672 * 

 

See Notes to Schedule of Investments.

 

 

Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report    

  

 

 

5

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Biotechnology - (continued)

      

Eagle Pharmaceuticals Inc.

      5,475      $ 144,649 * 

Editas Medicine Inc.

      8,000        97,920 * 

Enanta Pharmaceuticals Inc.

      2,900        150,423 * 

GlycoMimetics Inc.

      116,129        64,068 * 

Gritstone bio Inc.

      26,724        68,681 * 

Heron Therapeutics Inc.

      28,000        118,160 * 

Homology Medicines Inc.

      50,000        80,500 * 

Icosavax Inc.

      15,000        47,400 * 

Infinity Pharmaceuticals Inc.

      120,000        142,800 * 

Intercept Pharmaceuticals Inc.

      7,349        102,519 * 

Ironwood Pharmaceuticals Inc.

      15,000        155,400 * 

iTeos Therapeutics Inc.

      4,342        82,715 * 

Jounce Therapeutics Inc.

      23,383        54,716 * 

Karyopharm Therapeutics Inc.

      19,800        108,108 * 

MacroGenics Inc.

      32,000        110,720 * 

NextCure Inc.

      23,383        64,303 * 

Novavax Inc.

      1,804        32,833 * 

PDL BioPharma Inc.

      152,500        224,175 *(a)(b) 

Pieris Pharmaceuticals Inc.

      29,063        33,422 * 

Precigen Inc.

      33,405        70,819 * 

Precision BioSciences Inc.

      68,684        89,289 * 

Prothena Corp. PLC

      6,013        364,568 * 

Puma Biotechnology Inc.

      23,383        55,418 * 

Qualigen Therapeutics Inc.

      53,448        14,271 * 

RAPT Therapeutics Inc.

      8,351        200,925 * 

REGENXBIO Inc.

      5,478        144,784 * 

Rigel Pharmaceuticals Inc.

      53,448        63,069 * 

Sangamo Therapeutics Inc.

      26,000        127,400 * 

Savara Inc.

      177,634        275,333 * 

Selecta Biosciences Inc.

      59,395        97,408 * 

Sio Gene Therapies Inc.

      53,448        14,965 * 

Solid Biosciences Inc.

      140,000        65,324 * 

Spectrum Pharmaceuticals Inc.

      80,173        34,474 * 

Surface Oncology Inc.

      54,947        57,145 * 

Sutro Biopharma Inc.

      21,463        119,120 * 

Synlogic Inc.

      75,017        71,266 * 

Syros Pharmaceuticals Inc.

      4,209        27,106 * 

T2 Biosystems Inc.

      250,540        28,311 * 

Tempest Therapeutics Inc.

      10,173        17,701 * 

uniQure NV

      4,500        84,420 * 

 

See Notes to Schedule of Investments.

 

 

 

6

  

    Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report

  

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Biotechnology - (continued)

      

UNITY Biotechnology Inc.

      100,000      $ 39,510 * 

Vanda Pharmaceuticals Inc.

      18,707        184,825 * 

Vaxcyte Inc.

      4,743        113,832 * 

Verastem Inc.

      104,558        88,874 * 

Vir Biotechnology Inc.

      7,349        141,689 * 

Viracta Therapeutics Inc.

      28,646        122,318 * 

Voyager Therapeutics Inc.

      17,171        101,652 * 

Xencor Inc.

      4,409        114,546 * 
     

 

 

  

Total Biotechnology

         7,901,706  
     

 

 

  

Health Care Equipment & Supplies - 3.4%

      

Avanos Medical Inc.

      5,946        129,504 * 

Co-Diagnostics Inc.

      23,383        75,059 * 

Electromed Inc.

      23,196        237,759 * 

iRadimed Corp.

      4,208        126,492  

Lantheus Holdings Inc.

      3,000        210,990 * 

Masimo Corp.

      1,905        268,910 * 

Meridian Bioscience Inc.

      10,939        344,907 * 

QuidelOrtho Corp.

      3,007        214,940 * 

Shockwave Medical Inc.

      3,207        891,770 * 

STAAR Surgical Co.

      4,009        282,835 * 

Varex Imaging Corp.

      12,025        254,209 * 

Zynex Inc.

      17,638        159,977  
     

 

 

  

Total Health Care Equipment & Supplies

         3,197,352  
     

 

 

  

Health Care Providers & Services - 4.3%

      

Addus HomeCare Corp.

      3,675        350,007 * 

Alignment Healthcare Inc.

      18,800        222,592 * 

AMN Healthcare Services Inc.

      4,677        495,575 * 

Cross Country Healthcare Inc.

      13,000        368,810 * 

Ensign Group Inc.

      12,026        956,067  

Fulgent Genetics Inc.

      4,276        163,001 * 

Hanger Inc.

      16,034        300,156 * 

InfuSystem Holdings Inc.

      12,025        84,055 * 

Joint Corp.

      10,021        157,430 * 

ModivCare Inc.

      3,300        328,944 * 

Owens & Minor Inc.

      8,017        193,210  

Tenet Healthcare Corp.

      8,018        413,568 * 
     

 

 

  

Total Health Care Providers & Services

         4,033,415  
     

 

 

  

Health Care Technology - 0.4%

      

NextGen Healthcare Inc.

      18,888        334,318 * 
     

 

 

  

 

See Notes to Schedule of Investments.

 

 

Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report    

  

 

 

7

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Life Sciences Tools & Services - 0.1%

      

Adaptive Biotechnologies Corp.

      18,000      $ 128,160 * 
     

 

 

  

Pharmaceuticals - 1.1%

      

Amphastar Pharmaceuticals Inc.

      8,685        244,048 * 

Assertio Holdings Inc.

      50,108        113,745 * 

Cara Therapeutics Inc.

      13,361        125,059 * 

Clearside Biomedical Inc.

      74,428        84,104 * 

Iterum Therapeutics PLC

      16,831        27,266 * 

Nektar Therapeutics

      30,000        96,000 * 

Seelos Therapeutics Inc.

      73,491        75,696 * 

Theravance Biopharma Inc.

      10,021        101,613 * 

VYNE Therapeutics Inc.

      93,534        20,867 * 

WaVe Life Sciences Ltd.

      43,493        157,010 * 
     

 

 

  

Total Pharmaceuticals

         1,045,408  
     

 

 

  

TOTAL HEALTH CARE

         16,640,359  
     

 

 

  
INDUSTRIALS - 15.5%      

Aerospace & Defense - 0.6%

      

AAR Corp.

      10,021        358,952 * 

Astronics Corp.

      28,000        220,080 * 
     

 

 

  

Total Aerospace & Defense

         579,032  
     

 

 

  

Building Products - 0.9%

      

Alpha Pro Tech Ltd.

      17,705        71,705 * 

Caesarstone Ltd.

      12,827        119,420  

Masonite International Corp.

      8,820        628,778 * 
     

 

 

  

Total Building Products

         819,903  
     

 

 

  

Commercial Services & Supplies - 0.5%

      

CoreCivic Inc.

      34,474        304,750 * 

GEO Group Inc.

      23,383        180,049 * 
     

 

 

  

Total Commercial Services & Supplies

         484,799  
     

 

 

  

Construction & Engineering - 1.4%

      

Argan Inc.

      8,479        272,769  

Dycom Industries Inc.

      5,345        510,608 * 

MYR Group Inc.

      3,007        254,783 * 

Orion Group Holdings Inc.

      112,926        298,125 * 
     

 

 

  

Total Construction & Engineering

         1,336,285  
     

 

 

  

Electrical Equipment - 0.8%

      

Encore Wire Corp.

      2,000        231,080  

GrafTech International Ltd.

      25,788        111,146  

SunPower Corp.

      16,034        369,424 * 
     

 

 

  

Total Electrical Equipment

         711,650  
     

 

 

  

 

See Notes to Schedule of Investments.

 

 

 

8

  

    Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report

  

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Machinery - 1.6%

      

Briggs & Stratton Corp.

      158,200      $ 0 *(a)(b)(c) 

Greenbrier Cos. Inc.

      11,156        270,756  

Manitowoc Co. Inc.

      23,383        181,218 * 

Terex Corp.

      12,025        357,624  

Titan International Inc.

      55,260        670,856 * 
     

 

 

  

Total Machinery

         1,480,454  
     

 

 

  

Professional Services - 3.3%

      

Barrett Business Services Inc.

      1,604        125,112  

CRA International Inc.

      4,677        415,037  

Exponent Inc.

      3,675        322,187  

Heidrick & Struggles International Inc.

      7,349        191,001  

Insperity Inc.

      7,216        736,681  

Kforce Inc.

      12,026        705,325  

TriNet Group Inc.

      5,000        356,100 * 

TrueBlue Inc.

      13,328        254,298 * 
     

 

 

  

Total Professional Services

         3,105,741  
     

 

 

  

Road & Rail - 1.5%

      

ArcBest Corp.

      5,345        388,742  

Covenant Logistics Group Inc.

      15,366        441,004  

Werner Enterprises Inc.

      16,034        602,879  
     

 

 

  

Total Road & Rail

         1,432,625  
     

 

 

  

Trading Companies & Distributors - 4.9%

      

BlueLinx Holdings Inc.

      10,022        622,366 * 

Boise Cascade Co.

      5,345        317,814  

Herc Holdings Inc.

      5,345        555,239  

MRC Global Inc.

      46,767        336,255 * 

NOW Inc.

      66,810        671,440 * 

Rush Enterprises Inc., Class A Shares

      11,357        498,118  

Titan Machinery Inc.

      15,000        423,900 * 

Triton International Ltd.

      9,354        511,944  

Veritiv Corp.

      6,348        620,644 * 
     

 

 

  

Total Trading Companies & Distributors

         4,557,720  
     

 

 

  

TOTAL INDUSTRIALS

         14,508,209  
     

 

 

  
INFORMATION TECHNOLOGY - 13.7%      

Communications Equipment - 1.7%

      

ADTRAN Holdings Inc.

      19,375        379,363  

Applied Optoelectronics Inc.

      34,741        94,496 * 

EMCORE Corp.

      45,230        75,534 * 

Extreme Networks Inc.

      30,064        392,936 * 

Inseego Corp.

      82,800        171,396 * 

 

See Notes to Schedule of Investments.

 

 

Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report    

  

 

 

9

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Communications Equipment - (continued)

      

NETGEAR Inc.

      8,710      $ 174,548 * 

NetScout Systems Inc.

      9,687        303,397 * 
     

 

 

  

Total Communications Equipment

         1,591,670  
     

 

 

  

Electronic Equipment, Instruments & Components - 1.2%

      

Arlo Technologies Inc.

      44,963        208,628 * 

Avnet Inc.

      4,008        144,769  

Sanmina Corp.

      8,017        369,423 * 

TTM Technologies Inc.

      21,379        281,775 * 

Vishay Intertechnology Inc.

      8,017        142,623  
     

 

 

  

Total Electronic Equipment, Instruments & Components

         1,147,218  
     

 

 

  

IT Services - 1.7%

      

AvidXchange Holdings Inc.

      30,000        252,600 * 

ExlService Holdings Inc.

      5,011        738,421 * 

Grid Dynamics Holdings Inc.

      19,709        369,150 * 

International Money Express Inc.

      9,800        223,342 * 
     

 

 

  

Total IT Services

         1,583,513  
     

 

 

  

Semiconductors & Semiconductor Equipment - 2.3%

      

Amkor Technology Inc.

      38,708        659,971  

Axcelis Technologies Inc.

      11,091        671,671 * 

Everspin Technologies Inc.

      23,383        135,388 * 

Kulicke & Soffa Industries Inc.

      8,017        308,895  

Photronics Inc.

      26,724        390,705 * 
     

 

 

  

Total Semiconductors & Semiconductor Equipment

         2,166,630  
     

 

 

  

Software - 6.6%

      

A10 Networks Inc.

      34,340        455,692  

Alarm.com Holdings Inc.

      5,011        325,013 * 

Box Inc., Class A Shares

      33,100        807,309 * 

ChannelAdvisor Corp.

      12,025        272,487 * 

CommVault Systems Inc.

      8,441        447,711 * 

Domo Inc., Class B Shares

      4,008        72,104 * 

eGain Corp.

      20,644        151,733 * 

HubSpot Inc.

      668        180,440 * 

LiveRamp Holdings Inc.

      8,017        145,589 * 

Manhattan Associates Inc.

      4,677        622,181 * 

Qualys Inc.

      5,078        707,822 * 

Sprout Social Inc., Class A Shares

      4,677        283,800 * 

SPS Commerce Inc.

      4,143        514,685 * 

Tenable Holdings Inc.

      11,357        395,224 * 

Varonis Systems Inc.

      7,883        209,057 * 

 

See Notes to Schedule of Investments.

 

 

 

10

  

    Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report

  

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Software - (continued)

      

Workiva Inc.

      5,011      $ 389,856 * 

Zuora Inc., Class A Shares

      24,051        177,496 * 
     

 

 

  

Total Software

         6,158,199  
     

 

 

  

Technology Hardware, Storage & Peripherals - 0.2%

      

Stratasys Ltd.

      12,025        173,280 * 
     

 

 

  

TOTAL INFORMATION TECHNOLOGY

         12,820,510  
     

 

 

  
MATERIALS - 3.9%      

Chemicals - 1.3%

      

AdvanSix Inc.

      12,025        386,003  

American Vanguard Corp.

      12,827        239,865  

PureCycle Technologies Inc.

      30,732        248,007 * 

Tronox Holdings PLC, Class A Shares

      25,756        315,511  
     

 

 

  

Total Chemicals

         1,189,386  
     

 

 

  

Metals & Mining - 1.3%

      

Alcoa Corp.

      9,353        314,822  

Haynes International Inc.

      9,487        333,184  

SunCoke Energy Inc.

      90,862        527,908  
     

 

 

  

Total Metals & Mining

         1,175,914  
     

 

 

  

Paper & Forest Products - 1.3%

      

Clearwater Paper Corp.

      10,989        413,186 * 

Resolute Forest Products Inc.

      42,691        853,820 * 
     

 

 

  

Total Paper & Forest Products

         1,267,006  
     

 

 

  

TOTAL MATERIALS

         3,632,306  
     

 

 

  
REAL ESTATE - 5.5%      

Equity Real Estate Investment Trusts (REITs) - 4.5%

      

Apple Hospitality REIT Inc.

      33,405        469,674  

Braemar Hotels & Resorts Inc.

      33,405        143,641  

CareTrust REIT Inc.

      21,463        388,695  

Chatham Lodging Trust

      24,854        245,309 * 

Corporate Office Properties Trust

      14,595        339,042  

DiamondRock Hospitality Co.

      65,682        493,272  

Hersha Hospitality Trust, Class A Shares

      66,810        533,144  

Innovative Industrial Properties Inc.

      2,662        235,587  

Outfront Media Inc.

      18,039        274,012  

Pebblebrook Hotel Trust

      17,370        252,039  

Piedmont Office Realty Trust Inc., Class A Shares

      23,717        250,452  

RLJ Lodging Trust

      28,125        284,625  

Sabra Health Care REIT Inc.

      16,702        219,130  

Xenia Hotels & Resorts Inc.

      8,685        119,766  
     

 

 

  

Total Equity Real Estate Investment Trusts (REITs)

         4,248,388  
     

 

 

  

 

See Notes to Schedule of Investments.

 

 

Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report    

  

 

 

11

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

SECURITY

    SHARES      VALUE  

Real Estate Management & Development - 1.0%

      

Forestar Group Inc.

      22,047      $ 246,706 * 

Jones Lang LaSalle Inc.

      1,950        294,586 * 

Marcus & Millichap Inc.

      9,379        307,444  

RE/MAX Holdings Inc., Class A Shares

      3,374        63,802  
     

 

 

  

Total Real Estate Management & Development

         912,538  
     

 

 

  

TOTAL REAL ESTATE

         5,160,926  
     

 

 

  
UTILITIES - 3.5%      

Electric Utilities - 2.5%

      

ALLETE Inc.

      7,350        367,867  

IDACORP Inc.

      5,145        509,406  

Otter Tail Corp.

      4,009        246,634  

PNM Resources Inc.

      10,689        488,808  

Portland General Electric Co.

      17,036        740,385  
     

 

 

  

Total Electric Utilities

         2,353,100  
     

 

 

  

Gas Utilities - 0.6%

      

National Fuel Gas Co.

      4,878        300,241  

Northwest Natural Holding Co.

      6,949        301,448  
     

 

 

  

Total Gas Utilities

         601,689  
     

 

 

  

Water Utilities - 0.4%

      

Consolidated Water Co. Ltd.

      23,498        361,399  
     

 

 

  

TOTAL UTILITIES

         3,316,188  
     

 

 

  

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS

(Cost - $99,252,409)

         93,073,431  
     

 

 

  

 

     RATE               
SHORT-TERM INVESTMENTS - 1.0%        

Invesco Treasury Portfolio, Institutional Class

(Cost - $884,635)

      2.846 %      884,635        884,635  
       

 

 

  

TOTAL INVESTMENTS - 100.1%

(Cost - $100,137,044)

           93,958,066  

Liabilities in Excess of Other Assets - (0.1)%

           (64,945 ) 
       

 

 

  

TOTAL NET ASSETS - 100.0%

         $ 93,893,121  
       

 

 

  

 

*

Non-income producing security.

 

(a)

Security is valued in good faith in accordance with procedures approved by the Board of Trustees (Note 1).

 

(b)

Security is valued using significant unobservable inputs (Note 1).

 

(c)

Value is less than $1.

Abbreviation(s) used in this schedule:

CVR    — Contingent Value Rights
REIT    — Real Estate Investment Trust

 

See Notes to Schedule of Investments.

 

 

 

12

  

    Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report

  

FRANKLIN U.S. SMALL CAP EQUITY FUND

 

Schedule of investments (unaudited) (cont’d)    September 30, 2022

(Percentages shown based on Fund net assets)

   

 

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

 

See Notes to Schedule of Investments.

 

 

Franklin U.S. Small Cap Equity Fund 2022 Quarterly Report    

  

 

 

13

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Franklin U.S. Small Cap Equity Fund (the “Fund”) is a separate diversified investment series of Legg Mason Global Asset Management Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment valuation. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Trustees.

Pursuant to policies adopted by the Board of Trustees, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

 

 

 

14

    

Notes to Schedule of Investments (unaudited) (continued)

 

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

 

  •  

Level 1 – unadjusted quoted prices in active markets for identical investments

 

  •  

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

  •  

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

 

   

 

 

15

Notes to Schedule of Investments (unaudited) (continued)

 

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

 

ASSETS

  

DESCRIPTION

    QUOTED PRICES
(LEVEL 1)		      OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)		      SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)		     TOTAL  

Long-Term Investments†:

           

Common Stocks:

           

Health Care

    $ 16,416,184        —        $ 224,175     $ 16,640,359  

Industrials

      14,508,209        —          0 *      14,508,209  

Other Common Stocks

      61,924,863        —          —         61,924,863  
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Long-Term Investments

      92,849,256        —          224,175       93,073,431  
  

 

 

     

 

 

     

 

 

    

 

 

  

Short-Term Investments†

      884,635        —          —         884,635  
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Investments

    $ 93,733,891        —        $ 224,175     $ 93,958,066  
  

 

 

     

 

 

     

 

 

    

 

 

  

 

†

See Schedule of Investments for additional detailed categorizations.

 

*

Amount represents less than $1.

 

 

 

16