printmgr file - Templeton

Franklin Templeton Investments Funds
NOTES TO FINANCIAL STATEMENTS For the periods ended December 31, 2012 and 2011 (Continued)
10. Financial Risk Management (Continued)
Templeton Global Smaller Companies Fund
December 31, 2012 December 31, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
(000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s)
Equities — Long ....... $369,653 $313,227 $8,026 $690,906 $ 795,986 $ — $ — $795,986
Short-term securities .... — 23,100 — 23,100 — 32,300 — 32,300
Total Investments ....... $369,653 $336,327 $8,026 $714,006 $ 795,986 $32,300 $ — $828,286
Templeton International Stock Fund
December 31, 2012 December 31, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
(000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s)
Equities — Long ....... $256,133 $494,742 $ 112 $750,987 $1,148,980 $ — $ 174 $1,149,154
Convertible equities .....
Investments in mutual
227 — — 227 — — — —
funds/unit trusts ..... — — 7,968 7,968 — — 7,290 7,290
Short-term securities .... — 7,800 — 7,800 — 6,900 — 6,900
Total Investments ....... $256,360 $502,542 $8,080 $766,982 $1,148,980 $6,900 $7,464 $1,163,344
Franklin Flex Cap Growth Fund
December 31, 2012 December 31, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
(000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s)
Equities — Long ....... $270,625 $ — $ — $270,625 $192,942 $ — $ — $192,942
Short-term securities .... — — — — 561 — 561
Total Investments ....... $270,625 $ — $ — $270,625 $192,942 $561 $ — $193,503
Franklin High Income Fund
December 31, 2012 December 31, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
(000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s)
Equities — Long ....... $915 $ — $457 $ 1,372 $751 $ — $ — $ 751
Bonds ............... — 178,865 — 178,865 — 154,488 — 154,488
Short-term securities .... — — — — 4,711 — 4,711
Total Investments ....... $915 $178,865 $457 $180,237 $751 $159,199 $ — $159,950
Derivative assets ....... $ — $ 377 $ — $ 377 $ — $ 1,066 $ — $ 1,066
Derivative liabilities ..... $ — $ 1,382 $ — $ 1,382 $ — $ 136 $ — $ 136
Franklin Strategic Income Fund
December 31, 2012 December 31, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
(000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s)
Equities — Long ....... $407 $ 2,426 $457 $ 3,290 $329 $ 1,560 $168 $ 2,056
Convertible bonds ...... — 475,119 — 475,119 — 1,127 — 1,127
Bonds ............... — — — — — 454,805 687 455,493
Short-term securities .... — 15,500 — 15,500 — 77,723 — 77,723
Total Investments ....... $407 $493,045 $457 $493,909 $329 $535,215 $855 $536,399
Derivative assets ....... $ — $ 1,615 $ — $ 1,615 $ — $ 8,711 $ — $ 8,711
Derivative liabilities ..... $ — $ 2,882 $ — $ 2,882 $ — $ 1,770 $ — $ 1,770
238 Franklin Templeton Investments Funds