In plain terms — Templeton Dragon Fund
Shares currently cost about 17.9% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 14.4% discount, so today's level is unusually wide for this fund (Z-score -2.4). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 6.3% a year of the share price (5.2% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.22 of assets — a ReinvestCapture™ rate of 7.7%, more than the payout rate itself. That is buying power, not a return.
The assets themselves fell 7.7% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -14.72% | 1.45% | -1.58 | 64 |
| 6 months | -14.60% | 1.26% | -1.92 | 126 |
| 1 year | -14.36% | 1.09% | -2.44 | 250 |
| 3 years | -14.89% | — | — | — |
| 5 years | -13.95% | — | — | — |
Current contemporaneous premium/discount -17.01% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -17.57% to -11.46%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -8.85% | -11.57% | -15.81% | -16.40% | +3.99% | -12.33% |
| Market price total return | -7.48% | -10.24% | -12.51% | -12.35% | +7.15% | -8.75% |
| NAV return | -4.93% | -7.51% | -11.06% | -11.33% | +4.70% | -10.47% |
| NAV total return | -3.73% | -6.34% | -8.13% | -7.70% | +7.41% | -7.32% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
The Templeton Dragon Fund, Inc. is an actively managed, U.S.-domiciled closed-end equity fund that commenced operations on September 20, 1994. Established by Franklin Resources, Inc. and overseen by Templeton Asset Management Ltd., its primary objective is to invest in publicly traded Chinese companies. The fund primarily targets value stocks across a wide array of industries. Its portfolio is built upon rigorous fundamental analysis, evaluating criteria such as growth potential, competitive advantage in global export markets, technological capabilities, research and development initiatives, operational efficiency, labor and raw material expenditures, profit margins, return on investment, capital adequacy, the regulatory landscape, and management quality.
CEF Explorer research page for Templeton Dragon Fund Inc. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.