[{"_1":2,"_3":-5,"_4":-5},"loaderData",{"_5":6,"_7":8},"actionData","errors","root",{"_95":96},"routes/item",{"_9":10},"item",{"_11":12,"_13":14,"_15":16,"_17":18,"_19":20,"_21":-5,"_22":23,"_24":25,"_26":27,"_28":29,"_30":29,"_31":32,"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":-5,"_46":47,"_48":-5,"_49":-5,"_50":51,"_52":53,"_54":55,"_56":57,"_58":57,"_59":60,"_61":40,"_62":63},"id","x8zmxxc1r3f84fzyhkuwrldzd","revision",2,"title","Templeton Global Smaller Companies Fund 年报：截至2026年8月31日年度回报低于全球小盘指数","originalTitle","TEMPLETON GLOBAL SMALLER COMPANIES FUND (0000350900) (Filer)","summary","Templeton Global Smaller Companies Fund截至2026年8月31日的年度报告显示，R6类回报为11.26%，低于MSCI全球小盘指数净回报22.39%。","reason","source",{"_11":85,"_86":87,"_88":89,"_90":57,"_91":92,"_93":94},"links",{"_82":83,"_63":84},"publishedAt","2026-10-27T18:35:35.000Z","discoveredAt","2026-10-27T19:02:00.092Z","timelineAt","category","ai-products","tags",[80,81],"stockSymbols",[],"score",37,"selected",false,"channel","news","story",{"_72":73,"_15":74},"x","readingMode","full","author","language","body",{"_76":-5,"_63":77,"_78":-5,"_79":40},"outline",[],"relatedStories",[75],"indexable",true,"markdownAvailable","group",{"_64":65,"_43":66,"_67":68,"_69":70,"_71":70},"hasTranslation","bodyLanguage","original","factId","fG3ZxeB-_xUU",{"_72":73,"_15":74},"reportCount",1,"additionalSourceCount",0,"developmentCount","publicId","e52adbf9-c19e-4d64-8289-af75f8f4e312","Templeton全球小盘基金年度回报落后基准",{"_72":73,"_15":74},"zh","

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-03143

Templeton Global Smaller Companies Fund

(Exact name of registrant as specified in charter)

300 S.E. 2^nd Street, Fort Lauderdale,\nFL 33301-1923

(Address of principal executive offices) (Zip code)

Alison Baur

Franklin Templeton

One Franklin Parkway

San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant’s telephone number, including area code:\n(650) 312-2000

Date of fiscal year end: August 31

Date of reporting period: August 31, 2026

\n \n \n \n

ITEM 1.

REPORT TO STOCKHOLDERS

(a) The Report to Shareholders is filed herewith

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Global Smaller Companies Fund\n \n	\n $\"image\"$ \n
\n Class A [TEMGX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

This annual shareholder report contains important information about Templeton Global Smaller Companies Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class A \n	\n $141 \n	\n 1.34% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class A shares of Templeton Global Smaller Companies Fund returned 10.85%. The Fund compares its performance to the MSCI All Country World Small Cap Index-NR, which returned 22.39% for the same period.

PERFORMANCE HIGHLIGHTS

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n Stock selection in the real estate and consumer discretionary sectors and an underweight in the communication services sector contributed to relative performance for the year. \n
\n ↑ \n	\n Geographically, stock selection in the U.K. and Canada significantly contributed to performance for the year. \n
\n ↑ \n	\n Ambiq Micro, Wiwynn, Illumina, SharkNinja and Athabasca Oil were the top five stock contributors for the year. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in the health care, industrials and information technology sectors detracted from relative performance for the year. \n
\n ↓ \n	\n Geographically, stock selection in Japan and the U.S. significantly detracted from relative performance. \n
\n ↓ \n	\n Oddity Tech (not held at period-end), Classys, Icon (not held at period-end), JBT Marel and Sandisk (no exposure) were the top five stock detractors for the year. \n

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 1 \n

103-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.\n

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 8/31/2016 — 8/31/2026

$\"image\"$

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class A\n \n	\n 10.85 \n	\n 1.06 \n	\n 6.42 \n
\n Class A (with sales charge)\n \n	\n 4.73 \n	\n -0.09 \n	\n 5.82 \n
\n MSCI All Country World Index-NR\n \n	\n 22.35 \n	\n 10.89 \n	\n 12.58 \n
\n MSCI All Country World Small Cap Index-NR\n \n	\n 22.39 \n	\n 7.24 \n	\n 10.19 \n

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $811,721,886 \n
\n Total Number of Portfolio Holdings \n	\n 70 \n
\n Total Management Fee Paid \n	\n $7,072,656 \n
\n Portfolio Turnover Rate \n	\n 92.13% \n

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 2 \n

103-ATSR-1026

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

HOW HAS THE FUND CHANGED?

Effective January 1, 2026, the Fund’s definition of smaller companies was changed to companies with market capitalizations not exceeding the highest float-adjusted market capitalization in the Fund’s benchmark from companies with market capitalizations not exceeding the lesser of (1) the highest float-adjusted market capitalization in the Fund’s benchmark, or (2) $10 billion, at the time of purchase.

Effective October 31, 2025, Harlan B. Hodes no longer serves as a portfolio manager of the Fund.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

You will receive the Fund’s shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called “householding,” will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 3 \n

103-ATSR-1026

9450109361194610888117681670012063134081569515877175991000011711130481301115161195041640618694230762672132693100001168913362121811310818595151131642419076215532637942.427.121.92.91.70.43.6

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Global Smaller Companies Fund\n \n	\n $\"image\"$ \n
\n Class C [TESGX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class C \n	\n $219 \n	\n 2.09% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class C shares of Templeton Global Smaller Companies Fund returned 10.01%. The Fund compares its performance to the MSCI All Country World Small Cap Index-NR, which returned 22.39% for the same period.

PERFORMANCE HIGHLIGHTS

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n Stock selection in the real estate and consumer discretionary sectors and an underweight in the communication services sector contributed to relative performance for the year. \n
\n ↑ \n	\n Geographically, stock selection in the U.K. and Canada significantly contributed to performance for the year. \n
\n ↑ \n	\n Ambiq Micro, Wiwynn, Illumina, SharkNinja and Athabasca Oil were the top five stock contributors for the year. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in the health care, industrials and information technology sectors detracted from relative performance for the year. \n
\n ↓ \n	\n Geographically, stock selection in Japan and the U.S. significantly detracted from relative performance. \n
\n ↓ \n	\n Oddity Tech (not held at period-end), Classys, Icon (not held at period-end), JBT Marel and Sandisk (no exposure) were the top five stock detractors for the year. \n

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 1 \n

203-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

VALUE OF A $10,000 INVESTMENT – Class C 8/31/2016 — 8/31/2026

$\"image\"$

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class C\n \n	\n 10.01 \n	\n 0.31 \n	\n 5.61 \n
\n Class C (with sales charge)\n \n	\n 9.01 \n	\n 0.31 \n	\n 5.61 \n
\n MSCI All Country World Index-NR\n \n	\n 22.35 \n	\n 10.89 \n	\n 12.58 \n
\n MSCI All Country World Small Cap Index-NR\n \n	\n 22.39 \n	\n 7.24 \n	\n 10.19 \n

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $811,721,886 \n
\n Total Number of Portfolio Holdings \n	\n 70 \n
\n Total Management Fee Paid \n	\n $7,072,656 \n
\n Portfolio Turnover Rate \n	\n 92.13% \n

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 2 \n

203-ATSR-1026

HOW HAS THE FUND CHANGED?

Effective October 31, 2025, Harlan B. Hodes no longer serves as a portfolio manager of the Fund.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 3 \n

203-ATSR-1026

10000114881245211257120731700312200134501562215696172671000011711130481301115161195041640618694230762672132693100001168913362121811310818595151131642419076215532637942.427.121.92.91.70.43.6

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Global Smaller Companies Fund\n \n	\n $\"image\"$ \n
\n Class R6 [FBOGX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class R6 \n	\n $104 \n	\n 0.98% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class R6 shares of Templeton Global Smaller Companies Fund returned 11.26%. The Fund compares its performance to the MSCI All Country World Small Cap Index-NR, which returned 22.39% for the same period.

PERFORMANCE HIGHLIGHTS

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n Stock selection in the real estate and consumer discretionary sectors and an underweight in the communication services sector contributed to relative performance for the year. \n
\n ↑ \n	\n Geographically, stock selection in the U.K. and Canada significantly contributed to performance for the year. \n
\n ↑ \n	\n Ambiq Micro, Wiwynn, Illumina, SharkNinja and Athabasca Oil were the top five stock contributors for the year. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in the health care, industrials and information technology sectors detracted from relative performance for the year. \n
\n ↓ \n	\n Geographically, stock selection in Japan and the U.S. significantly detracted from relative performance. \n
\n ↓ \n	\n Oddity Tech (not held at period-end), Classys, Icon (not held at period-end), JBT Marel and Sandisk (no exposure) were the top five stock detractors for the year. \n

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 1 \n

313-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

VALUE OF A $10,000 INVESTMENT – Class R6 8/31/2016 — 8/31/2026

$\"image\"$

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class R6\n \n	\n 11.26 \n	\n 1.43 \n	\n 6.81 \n
\n MSCI All Country World Index-NR\n \n	\n 22.35 \n	\n 10.89 \n	\n 12.58 \n
\n MSCI All Country World Small Cap Index-NR\n \n	\n 22.39 \n	\n 7.24 \n	\n 10.19 \n

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $811,721,886 \n
\n Total Number of Portfolio Holdings \n	\n 70 \n
\n Total Management Fee Paid \n	\n $7,072,656 \n
\n Portfolio Turnover Rate \n	\n 92.13% \n

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 2 \n

313-ATSR-1026

HOW HAS THE FUND CHANGED?

Effective October 31, 2025, Harlan B. Hodes no longer serves as a portfolio manager of the Fund.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 3 \n

313-ATSR-1026

10000116181273811647126431799913051145631710717369193251000011711130481301115161195041640618694230762672132693100001168913362121811310818595151131642419076215532637942.427.121.92.91.70.43.6

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Global Smaller Companies Fund\n \n	\n $\"image\"$ \n
\n Advisor Class [TGSAX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Advisor Class \n	\n $115 \n	\n 1.09% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Advisor Class shares of Templeton Global Smaller Companies Fund returned 11.02%. The Fund compares its performance to the MSCI All Country World Small Cap Index-NR, which returned 22.39% for the same period.

PERFORMANCE HIGHLIGHTS

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n Stock selection in the real estate and consumer discretionary sectors and an underweight in the communication services sector contributed to relative performance for the year. \n
\n ↑ \n	\n Geographically, stock selection in the U.K. and Canada significantly contributed to performance for the year. \n
\n ↑ \n	\n Ambiq Micro, Wiwynn, Illumina, SharkNinja and Athabasca Oil were the top five stock contributors for the year. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in the health care, industrials and information technology sectors detracted from relative performance for the year. \n
\n ↓ \n	\n Geographically, stock selection in Japan and the U.S. significantly detracted from relative performance. \n
\n ↓ \n	\n Oddity Tech (not held at period-end), Classys, Icon (not held at period-end), JBT Marel and Sandisk (no exposure) were the top five stock detractors for the year. \n

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 1 \n

603-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

VALUE OF A $10,000 INVESTMENT – Advisor Class 8/31/2016 — 8/31/2026

$\"image\"$

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Advisor Class\n \n	\n 11.02 \n	\n 1.30 \n	\n 6.68 \n
\n MSCI All Country World Index-NR\n \n	\n 22.35 \n	\n 10.89 \n	\n 12.58 \n
\n MSCI All Country World Small Cap Index-NR\n \n	\n 22.39 \n	\n 7.24 \n	\n 10.19 \n

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $811,721,886 \n
\n Total Number of Portfolio Holdings \n	\n 70 \n
\n Total Management Fee Paid \n	\n $7,072,656 \n
\n Portfolio Turnover Rate \n	\n 92.13% \n

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 2 \n

603-ATSR-1026

HOW HAS THE FUND CHANGED?

Effective October 31, 2025, Harlan B. Hodes no longer serves as a portfolio manager of the Fund.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton Global Smaller Companies Fund \n

PAGE 3 \n

603-ATSR-1026

10000116021270511611125771789412956144331694917192190861000011711130481301115161195041640618694230762672132693100001168913362121811310818595151131642419076215532637942.427.121.92.91.70.43.6

(b) Not applicable

\n \n \n \n

ITEM 2.

CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics that applies to\nits principal executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 19(a) (1), the Registrant is attaching as\nan exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

\n \n \n \n

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the Registrant has determined that Ann\nTorre Bates and David W. Niemiec possess the technical attributes identified in Item 3 to Form N-CSR to qualify as “audit\ncommittee financial experts,” and has designated Ann Torre Bates and David W. Niemiec as the Audit Committee’s financial experts.\nAnn Torre Bates and David W. Niemiec are “independent” Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

Under applicable securities laws, a person determined to be an\naudit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes\nof Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The\ndesignation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations,\nor liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board\nof directors in the absence of such designation or identification. The designation or identification of a person as an audit committee\nfinancial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

\n \n \n \n

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

a) Audit Fees.\nThe aggregate fees billed in the last two fiscal years ending August 31, 2025 and August 31, 2026 (the “Reporting Periods”) for\nprofessional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant's annual\nfinancial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or\nengagements for the Reporting Periods, were $49,367 in August 31, 2025 and $49,665 in August 31, 2026.

b) Audit-Related Fees.\nThe aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the\nperformance of the Registrant’s financial statements were $0 in August 31, 2025 and $0 in August 31, 2026.

(c) Tax Fees. The\naggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax\nplanning (“Tax Services”) were $11,000 in August 31, 2025 and $11,000 in August 31, 2026. These services consisted of (i) review\nor preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance\nregarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment\nof various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant (“Service Affiliates”) during the Reporting Periods that required pre-approval by the Audit Committee.

(d) All Other Fees.\nThe aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the\nservices reported in paragraphs (a) through (c) of this item, were $0 in August 31, 2025\nand $0 in August 31, 2026.

There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.

(e) Audit Committee’s pre–approval policies and procedures\ndescribed in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

(1) The Registrant’s Audit Committee is directly responsible\nfor approving the services to be provided by the Auditors, including:

(i) pre-approval of all audit and audit related\nservices;

(ii) pre-approval of all non-audit related services\nto be provided to the Registrant by the Auditors;

(iii) pre-approval of all non-audit related\nservices to be provided by the Auditors to the Registrant and the Service Affiliates where the non-audit services relate directly to the\noperations or financial reporting of the Registrant; and

(iv) establishment by the Audit Committee, if\ndeemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the Auditors, as required by\nparagraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through\nestablishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are\ndetailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation\nof Audit Committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of\n(ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(2) None of the services described in paragraphs (b) through (d)\nof this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Non-audit fees billed by the Auditor for services rendered\nto the Registrant and the Service Affiliates during the reporting period were $248,876 in August 31, 2025 and $462,330 in August 31, 2026.

(h) Yes. The Registrant’s Audit Committee has considered\nwhether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval),\nis compatible with maintaining the Auditor's independence. All services provided by the Auditor to the Registrant or to the Service Affiliates,\nwhich were required to be pre-approved, were pre-approved as required.

(i) Not applicable.

(j) Not applicable.

\n \n \n \n

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

\n \n \n \n

ITEM 6.

SCHEDULE OF INVESTMENTS.

\n \n \n \n

(a)

Please see schedule of investments contained in the Financial Statements and Financial\n Highlights included under Item 7 of this Form N-CSR.

\n \n \n \n

(b)

Not applicable.

\n \n \n \n

ITEM 7.

FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

Templeton

Global

Smaller

Companies

Fund

Financial

Statements

and

Other

Important

Information

Annual

August

31,

2026

you

need

assistance

accessing

this

content,

please

reach

out

your

sales

representative

send

accessibility@franklintempleton.com

Table

Contents

franklintempleton.com

Financial

Statements

and

Other

Important

Information—Annual

Financial

Highlights

and

Schedule

Investments

Financial

Statements

Notes

Financial

Statements

Report

Independent

Registered

Public

Accounting

Firm

Tax

Information

Changes

and

Disagreements

with

Accountants

Results

Meeting(s)

Shareholders

Remuneration

Paid

Directors,

Officers

and

Others

Board

Approval

Management

and

Subadvisory

Agreements

Templeton

Global

Smaller

Companies

Fund

Financial

Highlights

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$10.10

$10.28

$8.88

$8.24

$12.67

Income

from

investment

operations

Net

investment

income

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

0.03

0.09

0.07

0.09

0.05

Net

realized

and

unrealized

gains

(losses)

...........

1.02

0.01

1.43

0.81

(3.30)

Total

from

investment

operations

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

1.05

0.10

1.50

0.90

(3.25)

Less

distributions

from:

Net

investment

income

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

(0.13)

(0.11)

(0.10)

(0.06)

(0.03)

Net

realized

gains

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

(0.32)

(0.17)

—

(0.20)

(1.15)

Total

distributions

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

(0.45)

(0.28)

(0.10)

(0.26)

(1.18)

Net

asset

value,

end

year

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

$10.70

$10.10

$10.28

$8.88

$8.24

Total

return

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

10.85%

1.16%

17.05%

11.15%

(27.76)%

Ratios

average

net

assets

Expenses

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

1.34%

1.31%

1.30%

1.31%

Net

investment

income

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

0.29%

0.99%

0.81%

1.06%

0.51%

Supplemental

data

Net

assets

end

year

(000’s)

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

$716,457

$731,951

$824,075

$794,020

$799,689

Portfolio

turnover

rate

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

92.13%

15.75%

11.95%

12.85%

13.80%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Templeton

Global

Smaller

Companies

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$9.33

$9.51

$8.21

$7.64

$11.88

Income

from

investment

operations

Net

investment

income

(loss)

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

(0.04)

0.02

0.01

0.02

(0.03)

Net

realized

and

unrealized

gains

(losses)

...........

0.94

0.01

1.31

0.75

(3.06)

Total

from

investment

operations

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

0.90

0.03

1.32

0.77

(3.09)

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.04)

(0.02)

—

Net

realized

gains

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

(0.32)

(0.17)

—

(0.20)

(1.15)

Total

distributions

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

(0.38)

(0.21)

(0.02)

(0.20)

(1.15)

Net

asset

value,

end

year

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

$9.85

$9.33

$9.51

$8.21

$7.64

Total

return

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

10.01%

0.47%

16.15%

10.25%

(28.25)%

Ratios

average

net

assets

Expenses

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

2.09%

2.08%

2.06%

Net

investment

income

(loss)

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

(0.46)%

0.17%

0.06%

0.27%

(0.28)%

Supplemental

data

Net

assets

end

year

(000’s)

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

$2,492

$3,222

$4,559

$4,875

$6,116

Portfolio

turnover

rate

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

92.13%

15.75%

11.95%

12.85%

13.80%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Templeton

Global

Smaller

Companies

Fund

Financial

Highlights

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$10.17

$10.35

$8.94

$8.30

$12.74

Income

from

investment

operations

Net

investment

income

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

0.07

0.12

0.11

0.12

0.09

Net

realized

and

unrealized

gains

(losses)

...........

1.02

0.01

1.44

0.82

(3.32)

Total

from

investment

operations

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

1.09

0.13

1.55

0.94

(3.23)

Less

distributions

from:

Net

investment

income

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

(0.16)

(0.14)

(0.10)

(0.06)

Net

realized

gains

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

(0.32)

(0.17)

—

(0.20)

(1.15)

Total

distributions

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

(0.48)

(0.31)

(0.14)

(0.30)

(1.21)

Net

asset

value,

end

year

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

$10.78

$10.17

$10.35

$8.94

$8.30

Total

return

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

11.26%

1.53%

17.47%

11.59%

(27.49)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.99%

0.98%

0.96%

0.94%

0.96%

Expenses

net

waiver

and

payments

affiliates

.......

0.98%

0.96%

0.93%

0.95%

Net

investment

income

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

0.64%

1.36%

1.17%

1.43%

0.88%

Supplemental

data

Net

assets

end

year

(000’s)

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

$53,023

$53,819

$59,890

$75,063

$73,802

Portfolio

turnover

rate

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

92.13%

15.75%

11.95%

12.85%

13.80%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Templeton

Global

Smaller

Companies

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

August

31,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$10.19

$10.37

$8.95

$8.31

$12.76

Income

from

investment

operations

Net

investment

income

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

0.05

0.12

0.10

0.11

0.08

Net

realized

and

unrealized

gains

(losses)

...........

1.02

—

1.45

0.81

(3.33)

Total

from

investment

operations

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

1.07

0.12

1.55

0.92

(3.25)

Less

distributions

from:

Net

investment

income

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

(0.15)

(0.13)

(0.08)

(0.05)

Net

realized

gains

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

(0.32)

(0.17)

—

(0.20)

(1.15)

Total

distributions

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

(0.47)

(0.30)

(0.13)

(0.28)

(1.20)

Net

asset

value,

end

year

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

$10.79

$10.19

$10.37

$8.95

$8.31

Total

return

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

11.02%

1.43%

17.43%

11.40%

(27.59)%

Ratios

average

net

assets

Expenses

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

1.09%

1.06%

1.05%

1.06%

Net

investment

income

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

0.54%

1.25%

1.07%

1.31%

0.76%

Supplemental

data

Net

assets

end

year

(000’s)

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

$39,750

$42,164

$44,421

$39,007

$40,999

Portfolio

turnover

rate

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

92.13%

15.75%

11.95%

12.85%

13.80%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Amount

rounds

less

than

$0.01

per

share.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Templeton

Global

Smaller

Companies

Fund

Schedule

Investments,

August

31,

2026

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Industry

Value

Common

Stocks

97.5%

Australia

1.8%

Orica

Ltd.

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

Chemicals

903,420

14,366,530

Austria

1.3%

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

Commercial

Services

Supplies

42,799

10,079,962

Bahamas

1.8%

OneSpaWorld

Holdings

Ltd.

........

Diversified

Consumer

Services

272,299

6,761,184

OneSpaWorld

Holdings

Ltd.

........

Diversified

Consumer

Services

314,014

7,796,968

14,558,152

Brazil

1.1%

XP,

Inc.

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

Capital

Markets

499,879

9,112,794

Canada

3.0%

Athabasca

Oil

Corp.

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

Oil,

Gas

Consumable

Fuels

1,419,000

10,883,488

Canaccord

Genuity

Group,

Inc.

......

Capital

Markets

1,271,000

13,324,889

24,208,377

China

4.1%

Sunresin

New

Materials

Co.

Ltd.

...

Chemicals

1,393,336

13,047,716

b,c

Wuxi

Biologics

Cayman,

Inc.

144A

Reg

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

Life

Sciences

Tools

Services

3,300,000

20,466,779

33,514,495

Denmark

2.4%

FLSmidth

Co.

A/S

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

Machinery

213,586

19,555,617

France

0.5%

Coface

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

Insurance

223,279

4,106,358

Germany

2.5%

Jenoptik

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

Electronic

Equipment,

Instruments

Components

238,413

11,015,710

Vonovia

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

Real

Estate

Management

Development

411,780

9,171,795

20,187,505

Hong

Kong

2.3%

Techtronic

Industries

Co.

Ltd.

.......

Machinery

1,101,290

18,940,426

India

1.0%

CESC

Ltd.

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

Electric

Utilities

5,129,677

7,870,887

Israel

0.4%

Nayax

Ltd.

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

Electronic

Equipment,

Instruments

Components

59,455

3,106,526

Italy

4.5%

Brunello

Cucinelli

SpA

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

Textiles,

Apparel

Luxury

Goods

77,738

7,928,113

Carel

Industries

SpA

144A

Reg

...

Building

Products

264,022

8,234,217

De'

Longhi

SpA

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

Household

Durables

192,024

9,442,331

Sanlorenzo

SpA

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

Leisure

Products

250,993

11,061,050

36,665,711

Japan

11.1%

Aica

Kogyo

Co.

Ltd.

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

Chemicals

439,300

11,395,285

Asics

Corp.

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

Textiles,

Apparel

Luxury

Goods

473,800

13,286,741

Azbil

Corp.

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

Electronic

Equipment,

Instruments

Components

1,179,900

11,241,710

GMO

Payment

Gateway,

Inc.

.......

Financial

Services

233,300

13,789,899

Kaneka

Corp.

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

Chemicals

220,300

8,573,219

Templeton

Global

Smaller

Companies

Fund

Schedule

Investments

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Industry

Value

Common

Stocks

(continued)

Japan

(continued)

Maruwa

Co.

Ltd.

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

Electronic

Equipment,

Instruments

Components

33,400

11,015,173

Miura

Co.

Ltd.

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

Machinery

201,900

4,043,644

Nihon

M&A

Center

Holdings,

Inc.

....

Capital

Markets

2,035,700

8,721,219

Sugi

Holdings

Co.

Ltd.

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

Consumer

Staples

Distribution

Retail

989,200

8,176,767

90,243,657

Netherlands

2.0%

Euronext

144A

Reg

.........

Capital

Markets

85,428

16,172,957

Norway

1.3%

Norsk

Hydro

ASA

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

Metals

Mining

1,036,563

10,465,169

Portugal

1.0%

Galp

Energia

SGPS

.........

Oil,

Gas

Consumable

Fuels

337,182

8,438,699

South

Korea

4.3%

Classys,

Inc.

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

Health

Care

Equipment

Supplies

457,589

11,297,719

ISC

Co.

Ltd.

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

Semiconductors

Semiconductor

Equipment

121,187

14,926,958

Soulbrain

Co.

Ltd.

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

Chemicals

35,455

8,836,713

35,061,390

Switzerland

1.4%

Medacta

Group

144A

Reg

....

Health

Care

Equipment

Supplies

74,700

11,661,976

Taiwan

4.5%

Tripod

Technology

Corp.

...........

Electronic

Equipment,

Instruments

Components

839,000

13,125,454

Wiwynn

Corp.

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

Technology

Hardware,

Storage

Peripherals

105,000

23,462,929

36,588,383

United

Kingdom

5.3%

Derwent

London

plc

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

Office

REITs

485,701

13,478,397

Fevertree

Drinks

plc

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

Beverages

976,847

11,297,162

Oxford

Instruments

plc

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

Electronic

Equipment,

Instruments

Components

108,688

4,182,532

b,c

Watches

Switzerland

Group

plc

144A

Specialty

Retail

1,434,195

13,751,172

42,709,263

United

States

39.9%

Advanced

Drainage

Systems,

Inc.

....

Building

Products

97,597

13,246,841

Alamo

Group,

Inc.

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

Machinery

58,499

9,627,765

Ambiq

Micro,

Inc.

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

Semiconductors

Semiconductor

Equipment

194,660

11,350,625

a,b

Atlas

Energy

Solutions,

Inc.

.......

Energy

Equipment

Services

1,206,246

15,801,823

Charles

River

Laboratories

International,

Inc.

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

Life

Sciences

Tools

Services

29,324

8,452,350

CNH

Industrial

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

Machinery

729,386

8,628,636

CubeSmart

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

Specialized

REITs

295,745

11,746,991

a,b

Freshpet,

Inc.

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

Food

Products

215,396

15,047,565

Guardian

Pharmacy

Services,

Inc.

Health

Care

Providers

Services

233,377

8,655,953

Healthcare

Services

Group,

Inc.

.....

Commercial

Services

Supplies

896,219

19,707,856

Huntington

Bancshares,

Inc.

........

Banks

941,339

15,706,241

Illumina,

Inc.

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

Life

Sciences

Tools

Services

127,101

27,152,587

Ingevity

Corp.

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

Chemicals

129,454

8,969,868

JBT

Marel

Corp.

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

Machinery

100,655

11,763,550

Jones

Lang

LaSalle,

Inc.

...........

Real

Estate

Management

Development

50,549

18,494,363

a,b

Knowles

Corp.

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

Electronic

Equipment,

Instruments

Components

297,796

10,178,667

Leonardo

DRS,

Inc.

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

Aerospace

Defense

216,198

8,215,524

Templeton

Global

Smaller

Companies

Fund

Schedule

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

See

Abbreviations

page

22.

Industry

Value

Common

Stocks

(continued)

United

States

(continued)

Levi

Strauss

Co.

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

Textiles,

Apparel

Luxury

Goods

570,100

11,835,276

Ryan

Specialty

Holdings,

Inc.

.....

Insurance

285,976

12,062,468

Seacoast

Banking

Corp.

Florida

...

Banks

442,721

15,032,591

a,b

SharkNinja,

Inc.

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

Household

Durables

75,496

14,532,225

Smurfit

Westrock

plc

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

Containers

Packaging

207,500

9,731,750

Texas

Capital

Bancshares,

Inc.

......

Banks

125,197

12,166,644

Timken

Co.

(The)

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

Machinery

88,727

10,687,167

a,b

Vita

Coco

Co.,

Inc.

(The)

...........

Beverages

254,231

14,927,173

323,722,499

Total

Common

Stocks

(Cost

600,601,601

)

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

791,337,333

Short

Term

Investments

3.7%

Industry

Principal

Amount

Value

Time

Deposits

2.7%

Canada

2.7%

Bank

Montreal

3.62

9/01/26

....

2,500,000

Royal

Bank

Canada

3.58

9/01/26

19,400,000

21,900,000

Total

Time

Deposits

(Cost

21,900,000

)

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

21,900,000

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.0%

Money

Market

Funds

1.0%

e,f

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.629

......

7,912,950

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

7,912,950

)

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

7,912,950

Total

Short

Term

Investments

(Cost

29,812,950

)

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

29,812,950

Total

Investments

(Cost

630,414,551

)

101.2

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

$821,150,283

Other

Assets,

less

Liabilities

(

1.2

)

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

(9,428,397)

Net

Assets

100.0%

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

$811,721,886

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

portion

all

the

security

loan

August

31,

2026.

See

Note

1(c).

Non-income

producing.

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

August

31,

2026,

the

aggregate

value

these

securities

was

$70,287,101,

representing

8.7%

net

assets.

See

Note

1(c)

regarding

securities

loan.

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

Templeton

Global

Smaller

Companies

Fund

Financial

Statements

Statement

Assets

and

Liabilities

August

31,

2026

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Templeton

Global

Smaller

Companies

Fund

Assets:

Investments

securities:

Cost

Unaffiliated

issuers

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

$622,501,601

Cost

Non-controlled

affiliates

(Note

)

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

7,912,950

Value

Unaffiliated

issuers

(Includes

securities

loaned

63,109,262

)

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

$813,237,333

Value

Non-controlled

affiliates

(Note

)

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

7,912,950

Cash

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

37,034

Receivables:

Investment

securities

sold

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

3,564

Capital

sold

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

80,407

Dividends

and

interest

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

1,028,563

European

Union

tax

reclaims

(Note

)

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

595,737

Total

assets

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

822,895,588

Liabilities:

Payables:

Investment

securities

purchased

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

1,741,168

Capital

redeemed

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

290,453

Management

fees

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

614,600

Distribution

fees

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

155,793

Transfer

agent

fees

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

293,226

Trustees'

fees

and

expenses

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

2,844

Payable

upon

return

securities

loaned

(Note

)

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

7,912,950

Accrued

expenses

and

other

liabilities

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

162,668

Total

liabilities

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

11,173,702

Net

assets,

value

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

$811,721,886

Net

assets

consist

of:

Paid-in

capital

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

$464,351,111

Total

distributable

earnings

(losses)

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

347,370,775

Net

assets,

value

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

$811,721,886

Templeton

Global

Smaller

Companies

Fund

Financial

Statements

Statement

Assets

and

Liabilities

(continued)

August

31,

2026

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Templeton

Global

Smaller

Companies

Fund

Class

Net

assets,

value

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

$716,457,057

outstanding

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

66,975,925

Net

asset

value

per

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

$10.70

Maximum

offering

price

per

(net

asset

value

per

.50

)

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

$11.32

Class

Net

assets,

value

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

$2,492,065

outstanding

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

253,107

Net

asset

value

and

maximum

offering

price

per

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

$9.85

Class

R6:

Net

assets,

value

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

$53,022,580

outstanding

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

4,920,219

Net

asset

value

and

maximum

offering

price

per

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

$10.78

Advisor

Class:

Net

assets,

value

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

$39,750,184

outstanding

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

3,682,737

Net

asset

value

and

maximum

offering

price

per

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

$10.79

Redemption

price

equal

net

asset

value

less

contingent

deferred

sales

charges,

applicable.

Net

asset

value

per

may

not

recalculate

due

rounding.

Templeton

Global

Smaller

Companies

Fund

Financial

Statements

Statement

Operations

for

the

year

ended

August

31,

2026

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Templeton

Global

Smaller

Companies

Fund

Investment

income:

Dividends:

(net

foreign

taxes

$1,039,321)

Unaffiliated

issuers

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

$11,288,002

Interest:

Unaffiliated

issuers

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

1,021,861

Income

from

securities

loaned:

Unaffiliated

entities

(net

fees

and

rebates)

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

(156,462)

Non-controlled

affiliates

(Note

)

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

315,228

Other

income

(Note

)

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

564,142

Total

investment

income

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

13,032,771

Expenses:

Management

fees

(Note

)

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

7,082,210

Distribution

fees:

(Note

)

Class

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

1,764,508

Class

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

27,652

Transfer

agent

fees:

(Note

)

Class

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

949,940

Class

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

3,728

Class

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

19,974

Advisor

Class

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

54,045

Custodian

fees

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

58,933

Reports

shareholders

fees

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

88,791

Registration

and

filing

fees

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

55,473

Professional

fees

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

144,411

Trustees'

fees

and

expenses

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

94,642

Other

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

118,895

Total

expenses

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

10,463,202

Expenses

waived/paid

affiliates

(Note

and

)

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

(13,885)

Net

expenses

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

10,449,317

Net

investment

income

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

2,583,454

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

179,852,505

Foreign

currency

transactions

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

19,580

Net

realized

gain

(loss)

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

179,872,085

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

(100,993,535)

Translation

other

assets

and

liabilities

denominated

foreign

currencies

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

(56,644)

Change

deferred

taxes

unrealized

appreciation

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

242,185

Net

change

unrealized

appreciation

(depreciation)

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

(100,807,994)

Net

realized

and

unrealized

gain

(loss)

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

79,064,091

Net

increase

(decrease)

net

assets

resulting

from

operations

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

$81,647,545

Templeton

Global

Smaller

Companies

Fund

Financial

Statements

Changes

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Templeton

Global

Smaller

Companies

Fund

Year

Ended

August

31,

2026

Year

Ended

August

31,

2025

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

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

$2,583,454

$8,522,878

Net

realized

gain

(loss)

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

179,872,085

25,466,036

Net

change

unrealized

appreciation

(depreciation)

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

(100,807,994)

(30,198,813)

Net

increase

(decrease)

net

assets

resulting

from

operations

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

81,647,545

3,790,101

Distributions

shareholders:

Class

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

(31,076,093)

(21,661,895)

Class

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

(121,180)

(100,288)

Class

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

(2,462,279)

(1,759,562)

Advisor

Class

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

(1,907,037)

(1,339,095)

Total

distributions

shareholders

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

(35,566,589)

(24,860,840)

Capital

transactions:

(Note

)

Class

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

(56,165,609)

(73,509,261)

Class

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

(852,063)

(1,162,823)

Class

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

(3,859,080)

(4,822,746)

Advisor

Class

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

(4,637,968)

(1,223,801)

Total

capital

transactions

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

(65,514,720)

(80,718,631)

Net

increase

(decrease)

net

assets

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

(19,433,764)

(101,789,370)

Net

assets:

Beginning

year

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

831,155,650

932,945,020

End

year

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

$811,721,886

$831,155,650

Templeton

Global

Smaller

Companies

Fund

franklintempleton.com

Annual

Report

Notes

Financial

Statements

Organization

and

Significant

Accounting

Policies

Templeton

Global

Smaller

Companies

Fund (Fund)

registered

under

the

Investment

Company

Act

1940

(1940

Act)

open-end

management

investment

company.

The Fund

follows

the

accounting

and

reporting

guidance

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

Fund

offers

four classes

Class

and

Advisor

Class.

Class

automatically

convert

Class

monthly

basis,

after

they

have

been

held

for

years.

Each

class

may

differ

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

matters

affecting

single

class,

its

exchange

privilege

and

fees

due

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Fund's

significant

accounting

policies.

Financial

Instrument

Valuation

The

Fund's

investments

financial

instruments

are

carried

fair

value

daily.

Fair

value

the

price

that

would

received

sell

asset

paid

transfer

liability

orderly

transaction

between

market

participants

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

each business

day as

p.m.

Eastern

time

the

regularly

scheduled

the

New

York

Stock

Exchange

(NYSE),

whichever

earlier.

Under

compliance

policies

and

procedures

approved

the Fund's

Board

Trustees

(the

Board),

the

Board

has

designated

the

Fund’s

investment

manager

the

valuation

designee

and

has

responsibility

for

oversight

valuation.

The

investment

manager

assisted

the

Fund’s

administrator

performing

this

responsibility,

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

determine

fair

value.

Equity

securities

listed

exchange

the

NASDAQ

National

Market

System

are

valued

the

last

quoted

sale

price

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

the

trading

the

foreign

stock

exchange

which

the

security

primarily

traded,

p.m.

Eastern

time.

The

value

then

converted

into

its

U.S.

dollar

equivalent

the

foreign

exchange

rate

effect

p.m.

Eastern

time

the

day

that

the

value

the

security

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

multiple

markets

multiple

exchanges

are

valued

according

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

relationships

similar

securities.

Debt

securities

generally

trade

the OTC

market

rather

than

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

determine

fair

value.

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

market-based

approach

through

which

quotes

from

market

makers

are

used

determine

fair

value.

instances

where

sufficient

market

activity

may

not

exist

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

principal

repayments,

underlying

collateral,

and

other

unique

security

features

order

estimate

the

relevant

cash

flows,

which

are

then

discounted

calculate

the

fair

value.

Investments

in open-end mutual

funds

are

valued

the

closing

NAV.

Investments

in time

deposits are

valued

cost,

which

approximates

fair

value.

The

Fund

has

procedures

determine

the

fair

value

financial

instruments

for

which

market

prices

are

not

reliable

readily

available.

Under

these

procedures,

the Fund

primarily

employs

market-based

approach

which

may

use

comparable

assets

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

determine

the

fair

value

the

investment.

income-based

valuation

approach

may

also

used

which

the

anticipated

future

cash

flows

the

investment

are

discounted

calculate

fair

value.

Discounts

may

also

applied

due

the

nature

duration

any

restrictions

the

disposition

the

investments.

Due

the

inherent

uncertainty

valuations

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

active

market

existed.

Trading

securities

foreign

securities

stock

exchanges

and

OTC

markets

may

completed

before

p.m.

Eastern

time.

addition,

trading

certain

foreign

markets

may

not

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

take

place

every

Fund's

business

day. Events

can occur

between

the

time

which

trading

foreign

security

completed

and

p.m.

Eastern

time

that

might

call

into

question

the

reliability

the

value

portfolio

security

held

the

Fund.

result,

differences

may

arise

between

the

value

the

Fund's

portfolio

securities

determined

the

foreign

market

and

the

latest

indications

value

p.m.

Eastern

time. In

order

minimize

the

potential

for

these

differences,

independent

pricing

service

may

used

adjust

the

value

the

Fund's

portfolio

securities

the

latest

indications

fair

value

p.m.

Eastern

time.

August

31,

2026,

certain

securities

may

have

been

fair

valued

using

these

procedures,

which

case

the

securities

were

categorized

Level

within

the

fair

value

hierarchy

(referred

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

information.

When

the

last

day

the

reporting

period

non-business

day,

certain

foreign

markets

may

open

those

days

that

the

Fund's

NAV

not

calculated,

which

could

result

differences

between

the

value

the

Fund's

portfolio

securities

the

last

business

day

and

the

last

calendar

day

the

reporting

period.

Any

security

valuation

changes

due

open

foreign

market

are

adjusted

and

reflected

the

Fund

for

financial

reporting

purposes.

Foreign

Currency

Translation

Portfolio

securities

and

other

assets

and

liabilities

denominated

foreign

currencies

are

translated

into

U.S.

dollars

based

the

exchange

rate

such

currencies

against

U.S.

dollars

the

date

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

facilitate

transactions

denominated

foreign

currency.

Purchases

and

sales

securities,

income

and

expense

items

denominated

foreign

currencies

are

translated

into

U.S.

dollars

the

exchange

rate

effect

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

foreign

currencies

contain

risks

that

those

currencies

will

decline

value

relative

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

reliability

foreign

exchange

rates

used

convert

the

U.S.

dollar

equivalent

value.

such

event

occurs,

the

foreign

exchange

rate

will

valued

fair

value

using

procedures

established

and

approved

the

Board.

The

Fund

does

not

separately

report

the

effect

changes

foreign

exchange

rates

from

changes

market

prices

securities

held.

Such

changes

are

included

net

realized

and

unrealized

gain

loss

from

investments

the

Statement of

Operations.

Realized

foreign

exchange

gains

losses

arise

from

sales

foreign

currencies,

currency

gains

losses

realized

between

the

trade

and

settlement

dates

securities

transactions

and

the

difference

between

the

recorded

amounts

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

the

amounts

actually

received

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

foreign

exchange

rates

foreign

denominated

assets

and

liabilities

other

than

investments

securities

held

the

end

the

reporting

period.

Securities

Lending

The

Fund

participates

agency

based

securities

lending

program

earn

additional

income.

The

Fund

receives

collateral

the

form

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

amount

equal

least

102%

the

fair

value

the

loaned

securities.

Collateral

maintained

over

the

life

the

loan

amount

not

less

than

100%

the

fair

value

loaned

securities,

determined

the

Fund

business

each

day;

any

additional

collateral

required

due

changes

security

values

delivered

the

Fund

the

business

day.

Any

cash

collateral

received

deposited

into

joint

cash

account

with

other

funds

and

used

invest

money

market

fund

managed

Franklin

Advisers,

Inc.,

affiliate

the

Fund.

Additionally,

August

31,

2026,

the

Fund

held

$57,819,334

U.S.

Government

and

Agency

securities

collateral.

These

securities

are

held

collateral

segregated

accounts

with

the

Fund's

custodian.

The

Fund

cannot

repledge

resell

these

securities

held

collateral.

such,

the

non-cash

collateral

excluded

from

the

Statement

Assets

and

Liabilities. The

Fund

may

receive

income

from

the

investment

cash

collateral,

addition

lending

fees paid

the

borrower.

Income

from

securities

loaned,

net

fees

paid

the

securities

lending

agent

and/or

third-party

vendor,

reported

separately

the Statement of

Operations.

The

Fund

bears

the

market

risk

with

respect

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

its

obligations

the

Fund.

the

borrower

defaults

its

obligation

return

the

securities

loaned,

the

Fund

has

the

Organization

and

Significant

Accounting

Policies

(continued)

Financial

Instrument

Valuation

(continued)

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

right

repurchase

the

securities

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

indemnify

the

Fund

the

event

default

third

party

borrower.

Securities

loan

outstanding

period

end,

any,

are

listed

the

Fund's

Schedule

Investments.

Income

and

Deferred

Taxes

is the Fund's

policy

qualify

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

distribute

shareholders

substantially

all

its

taxable

income

and

net

realized

gains

relieve

from

federal

income

and

excise

taxes.

result,

provision

for

U.S.

federal

income

taxes

required.

The

Fund

may

subject

foreign

taxation

income

received,

capital

gains

the

sale

securities

and

certain

foreign

currency

transactions

the

foreign

jurisdictions

which it

invests.

Foreign

taxes,

any,

are

recorded

based

the

tax

regulations

and

rates

that

exist

the

foreign

markets

which

the

Fund

invests.

some

cases,

the

Fund

may

entitled

reclaim

all

portion

such

taxes,

and

such

reclaim

amounts,

any,

are

reflected

dividend

receivable

the

Statement

Assets

and

Liabilities

and

dividend

income

the

Statement

Operations.

many

cases,

however,

the

Fund

may

not

receive

such

amounts

for

extended

period

time,

depending

the

country

investment.

When

capital

gain

tax

determined

apply,

the

Fund

records

estimated

deferred

tax

liability

amount

that

would

payable

the

securities

were

disposed

the

valuation

date.

result

several

court

cases,

certain

countries

across

the

European

Union, the

Fund

filed

additional

tax

reclaims

for

previously

withheld

taxes

dividends

earned

those

countries

(EU

reclaims). Income

recognized,

any,

for

reclaims

reflected

other

income

the

Statement

Operations

and

any

receivable,

any,

reflected

European

Union

tax

reclaims

the

Statement

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

other

expenses

the

Statement

Operations.

When

uncertainty

exists

the

ultimate

resolution

these

proceedings,

the

likelihood

receipt

these

reclaims,

and

the

potential

timing

payment,

amounts

are

reflected

the

financial

statements.

For

U.S.

income

tax

purposes,

reclaims

received

the

Fund,

any,

reduce

the

amount

foreign

taxes

Fund

shareholders

can

use

tax

deductions

or credits

their

income

tax

returns.

the

event

that

reclaims

received

the Fund

during a

fiscal

year

exceed

foreign

withholding

taxes

paid

the

Fund,

and

the

Fund previously

passed

through to

its

shareholders

foreign

taxes

incurred

the

Fund

used

credit

deduction

shareholder’s

income

tax

return,

the Fund

will enter

into

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

order

pay

the

associated

tax

liability

behalf

the Fund's

shareholders.

The Fund

may

recognize

income

tax

liability

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

less

than

50%

probability

that

will

sustained

upon

examination

the

tax

authorities

based

its

technical

merits.

August

31,

2026, the Fund

has

determined

that

tax

liability

required

its

financial

statements

uncertain

tax

positions

for

any

open

tax

years

(or

expected

taken

future

tax

years).

The

Fund's federal

and

state

income

and

federal

excise

tax

returns

for

the

prior

three

fiscal

years

are

subject

examination

the

Internal

Revenue

Service

and

state

departments

revenue.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

trade

date.

Realized

gains

and

losses

security

transactions

are

determined

specific

identification basis.

Interest

income

(including

interest

income

from

payment-in-kind

securities,

any)

and

estimated

expenses

are

accrued

daily.

Dividend

income

is recorded

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

not available.

such

cases,

the

dividend

recorded

soon

the

information

received

the Fund.

Distributions

shareholders

are

recorded

the

ex-dividend

date.

Distributions

from

realized

capital

gains

and

other

distributions,

any,

are

recorded

the

ex-dividend

date.

Distributable

earnings are

determined

according

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings recorded

accordance

with

U.S.

GAAP.

These

differences

may

permanent

temporary.

Permanent differences

are

reclassified

among

capital

accounts

reflect

their

tax

character.

These reclassifications

have

impact

net

assets

the

results

operations.

Temporary

differences are

not

reclassified,

they

may

reverse

subsequent

periods.

Organization

and

Significant

Accounting

Policies

(continued)

Securities

Lending

(continued)

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

each

class

based

upon

the

relative

proportion

net

assets

each

class.

Differences

per

distributions

class

are

generally

due

differences

class

specific

expenses.

Accounting

Estimates

The

preparation

financial

statements

accordance

with

U.S.

GAAP

requires

management

make

estimates

and

assumptions

that

affect

the

reported

amounts

assets

and

liabilities

the

date

the

financial

statements

and

the

amounts

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Guarantees

and

Indemnifications

Under

the Fund's

organizational

documents,

its

officers

and trustees

are

indemnified

the

Fund against

certain

liabilities

arising

out

the

performance

their

duties

the

Fund.

Additionally,

the

normal

course

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The Fund's

maximum

exposure

under

these

arrangements

unknown

this

would

involve

future

claims

that

may

made

against

the Fund

that

have

not

yet

occurred.

Currently,

the Fund

expects

the

risk

loss

remote.

Beneficial

Interest

August

31,

2026,

there

were

unlimited

number

authorized

(without

par

value).

Transactions

the

Fund's

were

follows:

Year

Ended

August

31,

2026

Year

Ended

August

31,

2025

Amount

Class

13197217

–

sold

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

2,427,845

$24,360,777

2,262,173

$21,498,657

issued

reinvestment

distributions

..........

3,082,546

29,654,089

2,192,514

20,741,178

redeemed

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

(11,018,465)

(110,180,475)

(12,143,830)

(115,749,096)

Net

increase

(decrease)

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

(5,508,074)

$(56,165,609)

(7,689,143)

$(73,509,261)

Class

226114

–

sold

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

35,678

$329,816

57,726

$500,805

issued

reinvestment

distributions

..........

13,575

120,821

11,344

99,603

redeemed

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

(141,671)

(1,302,700)

(202,766)

(1,763,231)

Net

increase

(decrease)

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

(92,418)

$(852,063)

(133,696)

$(1,162,823)

Class

865954

–

sold

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

723,591

$7,321,988

823,236

$7,795,343

issued

reinvestment

distributions

..........

252,676

2,443,376

184,039

1,748,371

redeemed

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

(1,348,232)

(13,624,444)

(1,501,264)

(14,366,460)

Net

increase

(decrease)

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

(371,965)

$(3,859,080)

(493,989)

$(4,822,746)

Advisor

Class

602002

–

sold

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

577,851

$5,852,922

785,788

$7,597,099

issued

reinvestment

distributions

..........

192,316

1,863,544

135,528

1,290,225

redeemed

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

(1,227,187)

(12,354,434)

(1,066,298)

(10,111,125)

Net

increase

(decrease)

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

(457,020)

$(4,637,968)

(144,982)

$(1,223,801)

May

include

portion

Class

that

were

automatically

converted

Class

Organization

and

Significant

Accounting

Policies

(continued)

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Transactions

with

Affiliates

Effective

August

17,

2026,

Franklin

Resources,

Inc.

was

renamed

Franklin

Templeton,

Inc.

Franklin

Templeton,

Inc.

the

holding

company

for

various

subsidiaries.

Certain

officers

and trustees

the Fund are

also

officers

and/or directors

the

following

subsidiaries:

Management

Fees

The

Fund

pays

investment

management fee,

calculated

daily and

paid

monthly,

to TIC based

on the

average

daily

net

assets

the

Fund

follows:

For

the

year

ended

August

31,

2026,

the

gross

effective

investment

management

fee

rate

was 0.884%

the

Fund’s

average daily

net

assets.

Under

subadvisory

agreement,

FTIC,

affiliate

TIC,

provides

subadvisory

services

the

Fund.

The

subadvisory

fee

paid

TIC

based

the

Fund's

average

daily

net

assets,

and

not

additional

expense

the

Fund.

Administrative

Fees

Under

agreement

with

TIC,

Services

provides

administrative

services

the

Fund.

The

fee

paid

by TIC

based

the

Fund's

average

daily

net

assets,

and

not

additional

expense

the

Fund.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

and

Class

shares,

pursuant

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

connection

with

the

servicing,

sale

and

distribution

the

Fund's

the

maximum

annual

plan

rate.

Under

the

Class

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year\n

cannot

reimbursed

subsequent

periods.

addition,

under

the

Fund’s

Class

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

connection

with

the

servicing,

sale

and

distribution

the

Fund's

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

monitoring

compliance

with

the

maximum

annual

plan

rates,

February

through

January

31.

The

maximum

annual

plan

rates,

based

the average

daily

net

assets,

for

each

class,

are

follows:

Subsidiary

Affiliation

Templeton

Investment

Counsel,

LLC

(TIC)

Investment

manager

Franklin

Templeton

Investments

Corp.

(FTIC)

Subadvisor

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.900%

and

including

$200

million

0.885%

Over

$200

million,

and

including

$700

million

0.850%

Over

$700

million,

and

including

billion

0.830%

Over

billion,

and

including

$1.2

billion

0.805%

Over

$1.2

billion,

and

including

billion

0.785%

Over

billion,

and

including

$10

billion

0.765%

Over

$10

billion,

and

including

$15

billion

0.745%

Over

$15

billion,

and

including

$20

billion

0.725%

excess

$20

billion

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

The

Board

has

set

the

current

rate

0.25%

per

year

for

Class

until

further

notice

and

approval

the

Board.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

not

represent

expenses

of the

Fund.

These

charges

are

deducted

from

the

proceeds

sales

fund

prior

investment

from

redemption

proceeds

prior

remittance,

applicable.

Distributors

has

advised

the Fund

the

following

commission

transactions

the

sales

and

redemptions

the Fund's shares

for

the

year:

Transfer

Agent

Fees

Each

class

pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

shareholder

servicing

obligations. The

fees

are based

fixed

margin

earned

Investor

Services

and

are allocated

the Fund

based

upon

relative

assets

and

relative

transactions. In

addition,

each

class reimburses

Investor

Services

for

out

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

third

parties.

These

fees

paid

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

such

classes'

aggregate

net

assets.

Class

pays

Investor

Services

transfer

agent

fees

allocated

specifically

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

year

ended

August

31,

2026,

the Fund

paid

transfer

agent

fees

noted

the

Statement of

Operations,

which

$237,386

was

retained

Investor

Services.

Investments

Affiliated

Management

Investment

Companies

The

Fund

invests

in\n

one

affiliated

management

investment

companies.

defined

the

1940

Act,

investment

deemed

“Controlled

Affiliate”

fund

when

fund

owns,

either

directly

indirectly,

25%

the

affiliated

fund’s

outstanding

has

the

power

exercise

control

over

management

policies

such

fund.

The

Fund

does

not

invest

for

purposes

exercising

controlling

influence

over

the

management

policies

such

fund.

Management

fees

paid

the

Fund

are

generally

waived

assets

invested

affiliated

management

investment

companies,

noted

the

Statement

Operations,

amount

not

exceed

the

management

and

administrative

fees,

applicable, paid

directly

indirectly

each

affiliate.

For

securities

lending

cash

collateral

invested

affiliated

management

investment

companies,

however,

the

applicable

waiver

subject

contractual

cap

and

may

not

fully

offset

the

fees

attributable

those

investments.

During

the

year

ended

August

31,

2026,

the

Fund

held

investments

affiliated

management

investment

companies

follows:

Class

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

0.35%

Class

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

1.00%

Sales

charges

retained

net

commissions

paid

unaffiliated

brokers/dealers

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

$13,013

CDSC

retained

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

$1,037

Transactions

with

Affiliates

(continued)

Distribution

Fees

(continued)

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Waiver

and

Expense

Reimbursements

Transfer

agent

fees

Class

the

Fund have

been

capped

that

transfer

agent

fees

for

that

class

not

exceed

0.03%

based

the

average

net

assets

the

class

until

December

31,

2026.

Income

Taxes

The

tax

character

distributions

paid

during

the

years

ended

August

31,

2026

and

2025,

was

follows:

August

31,

2026,

the

cost

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains for

income

tax

purposes

were

follows:

Differences

between

income

and/or

capital

gains

determined

book

basis

and

tax

basis

are

primarily

due

differing

treatments

reclaims,

passive

foreign

investment

company

and

pass-through

entity

income.

The

Fund

utilized

tax

accounting

practice

treat

portion

the

proceeds

from

capital

redeemed

distribution

from

net

investment

income

and

realized

capital

gains.

Value

Beginning

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Year

Number

Held

End

Year

Investment

Income

Templeton

Global

Smaller

Companies

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.629%

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

$—

$458,094,716

$(450,181,766)

$—

$7,912,950

7,912,950

$315,228

Total

Affiliated

Securities

...

$—

$458,094,716

$(450,181,766)

$—

$7,912,950

$315,228

2026

2025

Distributions

paid

from:

Ordinary

income

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

$10,527,551

$9,610,749

Long

term

capital

gain

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

25,039,038

15,250,091

$35,566,589

$24,860,840

Cost

investments

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

$630,414,551

Unrealized

appreciation

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

$206,930,398

Unrealized

depreciation

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

(16,194,666)

Net

unrealized

appreciation

(depreciation)

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

$190,735,732

Distributable

earnings:

Undistributed

ordinary

income

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

$12,119,582

Undistributed

long

term

capital

gains

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

143,898,882

Total

distributable

earnings

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

$156,018,464

Transactions

with

Affiliates

(continued)

Investments

Affiliated

Management

Investment

Companies

(continued)

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Investment

Transactions

Purchases

and

sales

investments (excluding

short

term

securities) for

the

year

ended

August

31,

2026,

aggregated

$708,245,830 and

$793,023,032,

respectively.

August

31,

2026,

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$7,912,950

cash

collateral.

The

gross

amount

recognized

liability

for

such

transactions

included

payable

upon

return

securities

loaned

the

Statement

Assets

and

Liabilities.

The

agreements

can

terminated

any

time.

Concentration

Risk

Investing

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

U.S.

securities,

such

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

greater

market

volatility.

Political

and

financial

uncertainty

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

investing

foreign

securities.

addition,

certain

foreign

securities

may

not

liquid

U.S.

securities.

Ongoing

threatened

military

conflicts

throughout

the

world

may

cause

significant

market

disruptions

and

volatility.

The

hostilities

and

sanctions

resulting

from

those

conflicts

may

also

have

significant

impact

certain

investments

the

Fund

well

the

Fund’s

performance

and

liquidity.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

Franklin

Templeton,

are

borrowers

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.995

billion

(Global

Credit

Facility)

which

matures

January

29,

2027.

This

Global

Credit

Facility

provides

source

funds

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

meet

future

unanticipated

unusually

large

redemption

requests.

Under

the

terms

the

Global

Credit

Facility,

the

Fund

may,

addition

interest

charged

any

borrowings

made

the

Fund

and

other

costs

incurred

the

Fund,

pay

its

fees

and

expenses

incurred

connection

with

the

implementation

and

maintenance

the

Global

Credit

Facility,

based

upon

its

relative

the

aggregate

net

assets

all

the

Borrowers,

including

annual

commitment

fee

0.15%

based

upon

the

unused

portion

the

Global

Credit

Facility.

These

fees

are

reflected

other

expenses

the

Statement

Operations.

During

the

year

ended

August

31,

2026,

the Fund

did

not

use

the

Global

Credit

Facility.

Fair

Value

Measurements

The

Fund

follows

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

determining

the

value

the

Fund's financial

instruments

and

are

summarized

the

following

fair

value

hierarchy:

Level

–

quoted

prices

active

markets

for

identical

financial

instruments

Level

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

determining

the

fair

value

financial

instruments)

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

The

input

levels

are

not

necessarily

indication

the

risk

liquidity

associated

with

financial

instruments

that

level.

summary

inputs

used

of August

31,

2026,

valuing

the

Fund's

assets carried

fair

value,

follows:

Operating

Segments

The Fund operates

single

operating

segment,

which

investment

portfolio.

The

chief

investment

officer

the

Fund’s

investment

manager serves

the

Chief

Operating

Decision

Maker

(“CODM”)

and

responsible

for

evaluating

the

Fund's

operating

results

and

allocating

resources

accordance

with

the

Fund’s

investment

strategy.

Internal

reporting

provided

the

CODM

aligns

with

the

accounting

policies

and

measurement

principles

used

the financial

statements.

For

information

regarding

segment

assets,

segment

profit

loss,

and

significant

expenses,

refer

the Statement

Assets

and

Liabilities

and

the Statement

Operations,

along

with

the

notes

the financial

statements.

The Schedule

Investments

provides

details

the Fund's investments

that

generate

returns

such

interest,

dividends,

and

realized

and

unrealized

gains

losses.

Performance

metrics,

including

portfolio

turnover

and

expense

ratios,

are

disclosed

the Financial

Highlights.

Level

Total

Templeton

Global

Smaller

Companies

Fund

Assets:

Investments

Securities:

Common

Stocks

Australia

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

—

14,366,530

—

14,366,530

Austria

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

—

10,079,962

—

10,079,962

Bahamas

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

14,558,152

—

14,558,152

Brazil

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

9,112,794

—

9,112,794

Canada

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

24,208,377

—

24,208,377

China

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

—

33,514,495

—

33,514,495

Denmark

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

—

19,555,617

—

19,555,617

France

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

—

4,106,358

—

4,106,358

Germany

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

—

20,187,505

—

20,187,505

Hong

Kong

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

—

18,940,426

—

18,940,426

India

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

—

7,870,887

—

7,870,887

Israel

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

—

3,106,526

—

3,106,526

Italy

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

8,234,217

28,431,494

—

36,665,711

Japan

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

8,176,767

82,066,890

—

90,243,657

Netherlands

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

—

16,172,957

—

16,172,957

Norway

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

—

10,465,169

—

10,465,169

Portugal

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

—

8,438,699

—

8,438,699

South

Korea

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

—

35,061,390

—

35,061,390

Switzerland

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

—

11,661,976

—

11,661,976

Taiwan

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

—

36,588,383

—

36,588,383

United

Kingdom

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

28,958,091

13,751,172

—

42,709,263

United

States

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

323,722,499

—

323,722,499

Short

Term

Investments

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

7,912,950

21,900,000

—

29,812,950

Total

Investments

Securities

...........

$424,883,847

$396,266,436

$—

$821,150,283

For

detailed

categories,

see

the

accompanying

Schedule

Investments.

Includes

foreign

securities

valued

$374,366,436,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Fair

Value

Measurements

(continued)

Templeton

Global

Smaller

Companies

Fund

Notes

Financial

Statements

franklintempleton.com

Annual

Report

10.

New

Accounting

Pronouncements

September

2026,

the

FASB

issued

Accounting

Standards

Update

(ASU)

No.

2026-03,

Fair

Value

Measurement

(Topic

820)—Investment

Companies

with

Equity

Securities

Subject

Contractual

Sale

Restrictions.

The

amendments

the

ASU

require

contractual

sale

restrictions

considered

measuring

the

fair

value

equity

securities

and

require

disclosure

the

amount

the

discount

attributable

the

contractual

sale

restriction.

The

ASU

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2027,

with

early

adoption

permitted.

Management

currently

evaluating

the

impact

the

financial

statements.

11.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

the

financial

statements

and

determined

that

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

REIT

Real

Estate

Investment

Trust

Templeton

Global

Smaller

Companies

Fund

Report

Independent

Registered

Public

Accounting

Firm

franklintempleton.com

Annual

Report

the

Board

Trustees

and

Shareholders

Templeton

Global

Smaller

Companies

Fund

Opinion

the

Financial

Statements

have

audited

the

accompanying

statement

assets

and

liabilities,

including

the

schedule

investments,

Templeton

Global

Smaller

Companies

Fund

(the

\"Fund\")

August

31,

2026,

the

statement

operations

for

the

year

ended

August

31,

2026,

the

statement

changes

net

assets

for

each

the

two

years

the

period

ended

August

31,

2026,

including

the

notes,

and

the

financial

highlights

for

each

the

five

years

the

period

ended

August

31,

2026

(collectively

referred

the

“financial

statements”).

our

opinion,

the

financial

statements

present

fairly,

all

material

respects,

the

financial

position

the

Fund

August

31,

2026,

the

results

its

operations

for

the

year

then

ended,

the

changes

its

net

assets

for

each

the

two

years

the

period

ended

August

31,

2026

and

the

financial

highlights

for

each

the

five

years

the

period

ended

August

31,

2026

conformity

with

accounting

principles

generally

accepted

the

United

States

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

the

Fund’s

management.

Our

responsibility

express

opinion

the

Fund’s

financial

statements

based

our

audits.

are

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

independent

with

respect

the

Fund

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

the

Securities

and

Exchange

Commission

and

the

PCAOB.

conducted

our

audits

these

financial

statements

accordance

with

the

standards

the

PCAOB.

Those

standards

require

that

plan

and

perform

the

audit

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

material

misstatement,

whether

due

error

fraud.

Our

audits

included

performing

procedures

assess

the

risks

material

misstatement

the

financial

statements,

whether

due

error

fraud,

and

performing

procedures

that

respond

those

risks.

Such

procedures

included

examining,

test

basis,

evidence

regarding

the

amounts

and

disclosures

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

management,

well

evaluating

the

overall

presentation

the

financial

statements.

Our

procedures

included

confirmation

securities

owned

August

31,

2026

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

the

broker,

performed

other

auditing

procedures.

believe

that

our

audits

provide

reasonable

basis

for

our

opinion.

/s/

PricewaterhouseCoopers

LLP

San

Francisco,

California

October

19,

2026

have

served

the

auditor

one

investment

companies

the

Franklin

Templeton

Group

Funds

since

1948.

Templeton

Global

Smaller

Companies

Fund

Tax

Information

(unaudited)

franklintempleton.com

Annual

Report

mid-February,

tax

information

shareholder's

proportionate

distributions

paid

during

the

preceding

calendar

year

will

received,

applicable.

Please

also

refer

www.franklintempleton.com

for

per

tax

information

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

consult

with

their

tax

advisors

for

further

information

the

treatment

these

amounts

their

tax

returns.

The

following

tax

information

for

the

Fund

required

furnished

shareholders

with

respect

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

subsequently

determined

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

August

31,

2026:

Under

Section

853

the

Internal

Revenue

Code,

the

Fund

intends

elect

pass

through

its

shareholders

the

following

amounts,

amounts

finally

determined,

foreign

taxes

paid

and

foreign

source

income

earned

the

Fund

during

the

fiscal

year

ended

August

31,

2026

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$34,483,805

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$2,217,559

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$8,706,917

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$1,059,418

Qualified

Business

Income

Dividends

Earned

§199A

$192,122

Section

163(j)

Interest

Earned

§163(j)

$624,036

Amount

Reported

Foreign

Taxes

Paid

$983,655

Foreign

Source

Income

Earned

$5,699,668

Templeton

Global

Smaller

Companies

Fund

franklintempleton.com

Annual

Report

TEMPLETON

GLOBAL

SMALLER

COMPANIES

FUND

(Fund)

(unaudited)

in-person

meeting

held

May

18-19,

2026

(Meeting),

the

Board

Trustees

(Board)

the

Fund,

including

majority

the

trustees

who

are

not

“interested

persons”

defined

the

Investment

Company

Act

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

the

investment

management

agreement

between

Templeton

Investment

Counsel,

LLC

(TICL)

and

the

Fund

and

the

investment

sub-advisory

agreement

between

TICL

and

Franklin

Templeton

Investments

Corp.

(Sub-Adviser),

affiliate

TICL,

behalf

the

Fund

(each

Management

Agreement)

for

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

consider

the

renewal

each

Management

Agreement.

TICL

and

the

Sub-Adviser

are

each

referred

herein

Manager.

considering

the

continuance

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

each

Manager

the

Meeting

and

throughout

the

year

meetings

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

response

detailed

set

requests

for

information

submitted

each

Manager

Independent

Trustee

counsel

behalf

the

Independent

Trustees

connection

with

the

annual

contract

renewal

process.

addition,

prior

the

Meeting,

the

Independent

Trustees

held

virtual

contract

renewal

meeting

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters,

and

then

met

with

management

request

additional

information

that

the

Independent

Trustees

also

considered

prior

and

the

Meeting.

The

Board

further

considered

all

the

factors

deemed

relevant

approving

the

continuance

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

the

services

provided

each

Manager;

(ii)

the

investment

performance

the

Fund;

(iii)

the

costs

the

services

provided

and

profits

realized

each

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

which

economies

scale

are

realized

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

scale

for

the

benefit

Fund

investors.

Changes

and

Disagreements

with

Accountants

For

the

period

covered

this

report

Not

applicable.

Results

Meeting(s)

Shareholders

For

the

period

covered

this

report

Not

applicable.

Remuneration

Paid

Directors,

Officers

and

Others

For

the

period

covered

this

report

Refer

the

financial

statements

included

herein.

Remuneration

officers

paid

the

Fund’s

investment

manager

according

the

terms

the

agreement.

Board

Approval

Management

and

Subadvisory

Agreements

For

the

period

covered

this

report

Templeton

Global

Smaller

Companies

Fund

franklintempleton.com

Annual

Report

approving

the

continuance

each

Management

Agreement,

the

Board,

including

majority

the

Independent

Trustees,

determined,

through

the

exercise

its

business

judgment,

that

the

terms

each

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

each

Management

Agreement

the

best

interests

the

Fund

and

its

shareholders.

While

attention

was

given

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

the

Board’s

determination.

Nature,

Extent

and

Quality

Services

The

Board

reviewed

the

information

received

regarding

the

nature,

extent

and

quality

investment

management

services

provided

each

Manager

and

its

affiliates

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

the

senior

management

and

investment

personnel

each

Manager,

well

information

succession

planning

where

appropriate;

the

structure

investment

personnel

compensation;

oversight

third-party

service

providers;

investment

performance

reports

and

financial

information

for

the

Fund;

reports

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

each

Manager

and

its

affiliates;

and

management

fees

charged

each

Manager

and

its

affiliates

funds

and

other

accounts,

including

management’s

explanation

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

annual

report

payments

made

Franklin

Templeton

(FT)

the

Fund

financial

intermediaries,

well

memorandum

relating

third-party

servicing

arrangements.

The

Board

acknowledged

FT’s

regular

updates

the

Board

strategic

initiatives,

ongoing

attention

the

service

level

quality

third-party

service

providers,

ongoing

efforts

modernize

its

mutual

fund

lineup,

mutual

fund

ETF

conversions,

integration

private

market

investments

into

existing

mutual

funds,

creation

additional

blockchain-compatible

money

market

funds,

and

sharpening

its

active,

income-oriented

offerings,

along

with

the

impact

team

integrations

and

staff

reductions.

The

Board

also

reviewed

and

considered

the

benefits

provided

Fund

shareholders

investing

fund

that

part

the

family

funds.

The

Board

noted

the

financial

position

the

Manager’s

parent,

Franklin

Templeton,

Inc.

(FTI),

FTI’s

continued

growth

its

global,

multi-asset

franchise,

and

its

commitment

the

mutual

fund

business.

The

Board

further

noted

FTI’s

continued

reassessment

fund

offerings

response

acquisitions

and

the

market

environment,

FTI’s

focus

technology-driven

transformation,

expansion

its

private

market

investment

capabilities

and

global

alternatives

platform,

and

leveraging

artificial

intelligence

(AI),

blockchain

and

digital

wealth

platforms.

Following

consideration

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

services

provided

each

Manager

and

its

affiliates

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

the

Fund

over

various

time

periods

ended

December

31,

2025.

The

Board

considered

the

performance

returns

for

the

Fund

comparison

the

performance

returns

mutual

funds

deemed

comparable

the

Fund

included

universe

(Performance

Universe)

selected

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

independent

provider

investment

company

data.

The

Board

received

description

the

methodology

used

Broadridge

select

the

mutual

funds

included

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

Board

meetings

throughout

the

year.

summary

the

Fund’s

performance

results

below.

This

year,

addition

providing

Class

performance

(and

expense)

data,

Broadridge

included

Advisor

Class

performance

data

for

the

Fund

align

with

the

performance

reporting

provided

Board

meetings

throughout

the

year.

Going

forward,

Broadridge

will

provide

the

Board

solely

with

the

Fund’s

Advisor

Class

performance

information.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

global

small-/mid-cap

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

the

Fund

invests

and

non-US

companies

and

that

the

Fund’s

underperformance

was

attributable

stock

selection

the

consumer

discretionary

sector

and,

geographically,

underweight

investments.

addition,

management

explained

that

relative

peers,

sector

allocations

the

energy

and

materials

sectors

and

small-capitalization

consumer

stocks

Templeton

Global

Smaller

Companies

Fund

franklintempleton.com

Annual

Report

detracted

from

the

Fund’s

performance.

Management

discussed

with

the

Board

the

actions

that

are

being

taken/have

been

taken

effort

improve

overall

performance

the

Fund,

noting

that

portfolio

management

change

October

2025

led

certain

enhancements

the

Fund’s

risk

management

and

portfolio

construction

processes.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

continued

for

additional

one-year

period,

while

management’s

efforts

improve

the

Fund’s

performance

continue

closely

monitored.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

receives

all

marketing

support

payments

made

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

fee

waivers,

any

(Management

Rate)

the

Fund

comparison

the

median

expense

ratio

and

median

Management

Rate,

respectively,

other

mutual

funds

deemed

comparable

and

with

similar

expense

structure

the

Fund

selected

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

based

upon

information

taken

from

each

fund’s

most

recent

annual

semi-annual

report,

which

reflects

historical

asset

levels

that

may

quite

different

from

those

currently

existing,

particularly

period

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

assets

decline

and

decrease

assets

grow,

the

Board

believed

the

independent

analysis

conducted

Broadridge

appropriate

measure

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

for

the

Fund

and

Class

Load

Class

Investor

Class

shares,

applicable,

for

the

other

funds

the

Expense

Group

with

multiple

classes

shares.

The

Board

received

description

the

methodology

used

Broadridge

select

the

mutual

funds

included

the

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

other

global

small-/mid-cap

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

and

the

first

quintile

(least

expensive)

its

Expense

Group.

The

Board

noted

that

the

Fund’s

Sub-Adviser

paid

TICL

out

the

management

fee

TICL

receives

from

the

Fund

and

that

the

allocation

the

fee

between

TICL

and

the

Sub-Adviser

reflected

the

services

provided

each

the

Fund.

The

Board

concluded

that

the

Management

Rate

charged

the

Fund

and

the

sub-advisory

fee

paid

the

Sub-Adviser

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

TICL

and

its

affiliates

connection

with

the

operation

the

Fund.

this

respect,

the

Board

considered

the

Fund

profitability

analysis

that

addresses

the

overall

profitability

FT’s

fund

business,

well

its

profits

providing

investment

management

and

other

services

each

the

individual

funds

during

the

12-month

period

ended

September

30,

2025,

being

the

most

recent

fiscal

year-end

for

FTI.

The

Board

noted

that

although

management

continually

makes

refinements

its

methodologies

used

calculating

profitability

response

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

independent

registered

public

accounting

firm

has

been

engaged

periodically

review

and

assess

the

allocation

methodologies

used

solely

the

Fund’s

Board

with

respect

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

establishing

the

infrastructure

necessary

for

the

type

mutual

fund

operations

conducted

the

Managers

and

their

affiliates

may

not

fully

reflected

the

expenses

allocated

the

Fund

determining

its

profitability,

well

the

fact

that

the

level

profits,

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

management.

part

this

evaluation,

the

Board

considered

management’s

outsourcing

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

each

Manager,

but

over

the

long

run

expected

result

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

improving

shareholder

services

provided

the

Fund,

well

the

need

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

Templeton

Global

Smaller

Companies

Fund

franklintempleton.com

Annual

Report

The

Board

also

considered

the

extent

which

each

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

fund

growth,

well

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

all

these

factors,

the

Board

concluded

that

the

level

profits

realized

each

Manager

and

its

affiliates

from

providing

services

the

Fund

was

not

excessive

view

the

nature,

extent

and

quality

services

provided

the

Fund.

Economies

Scale

The

Board

reviewed

and

considered

the

extent

which

each

Manager

may

realize

economies

scale,

any,

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

scale

for

the

benefit

shareholders.

With

respect

possible

economies

scale,

the

Board

noted

the

existence

management

fee

breakpoints,

which

operate

generally

any

economies

scale

with

the

Fund’s

shareholders

reducing

the

Fund’s

effective

management

fees

the

Fund

grows

size.

The

Board

considered

management’s

view

that

any

analyses

potential

economies

scale

managing

particular

fund

are

inherently

limited

light

the

joint

and

common

costs

and

investments

each

Manager

incurs

across

the

family

funds

whole.

The

Board

concluded

that

the

extent

economies

scale

may

realized

each

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

sharing

benefits

with

the

Fund

and

its

shareholders

the

Fund

grows.

Conclusion

Based

its

review,

consideration

and

evaluation

all

factors

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuance

each

Management

Agreement

for

additional

one-year

period.

30-AFSOI

10/26

2026

Franklin

Templeton.

All

rights

reserved.

\n \n \n \n

ITEM 8.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements\nincluded in Item 7 of this Form N-CSR.

\n \n \n \n

ITEM 9.

PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements\nincluded in Item 7 of this Form N-CSR.

\n \n \n \n

ITEM 10.

REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements\nincluded in Item 7 of this Form N-CSR.

\n \n \n \n

ITEM 11.

STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

The information is disclosed as part of the Financial Statements\nincluded in Item 7 of this Form N-CSR, as applicable.

\n \n \n \n

ITEM 12.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

\n \n \n \n

ITEM 13.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

\n \n \n \n

ITEM 14.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

\n \n \n \n

ITEM 15.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no changes to the procedures by which shareholders\nmay recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

\n \n \n \n

ITEM 16.

CONTROLS AND PROCEDURES.

\n \n \n \n

(a)

The Registrants acknowledge the Staff's comment. In future filings on Form N-CSR, the\n certifications required by Rule 30a-2 and Item 19(a)(3) will include the designations “principal executive officer” and “principal\n financial officer” in the signature blocks, reflecting the capacity in which each signatory executes the certification, in conformity\n with the language of the Rule and Form N-CSR. The Registrants may also include each signatory's actual title with respect to the Funds\n alongside the required designation.

\n \n \n \n

(b)

There were no changes in the Registrant’s internal control over financial\n reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially\n affected or are likely to materially affect the Registrant’s internal control over financial reporting.

\n \n \n \n

ITEM 17.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

\n \n \n \n

ITEM 18.

RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

\n \n \n \n

(a)

Not applicable.

\n \n \n \n

(b)

Not applicable.

\n \n \n \n

ITEM 19.

EXHIBITS.

(a) (1) Code\nof Ethics attached hereto.

Exhibit 99.CODE ETH

(a) (3) Certifications\npursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications\npursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange\nAct of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned,\nthere unto duly authorized.

Templeton Global Smaller Companies Fund

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

By:	/s/ Christopher\n Kings
	Christopher Kings
	Chief Executive Officer – Finance and Administration

Date:	October 27, 2026

Pursuant to the requirements of the Securities Exchange\nAct of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant\nand in the capacities and on the dates indicated.

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

By:	/s/ Christopher\n Kings
	Christopher Kings
	Chief Executive Officer – Finance and Administration

Date:	October 27, 2026

By:	/s/ Jeffrey White
	Jeffrey White
	Chief Financial Officer, Chief Accounting Officer and\n Treasurer

Date:	October 27, 2026

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