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      <regFileNumber>811-05878</regFileNumber>
      <regCik>0000856119</regCik>
      <regLei>549300RD0PTCJOMRSV24</regLei>
      <regStreet1>One Franklin Parkway</regStreet1>
      <regCity>San Mateo</regCity>
      <regStateConditional regCountry="US" regState="US-CA"/>
      <regZipOrPostalCode>94403-1906</regZipOrPostalCode>
      <regPhone>650-312-2000</regPhone>
      <seriesName>Franklin Small Cap Value Fund</seriesName>
      <seriesId>S000007356</seriesId>
      <seriesLei>5493008L8BP00V1G7510</seriesLei>
      <repPdEnd>2020-10-31</repPdEnd>
      <repPdDate>2020-01-31</repPdDate>
      <isFinalFiling>N</isFinalFiling>
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        <issuerCat>CORP</issuerCat>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>RETAIL PROPERTIES OF AMERICA INC REIT USD.001 CLASS A</name>
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          <ticker value="RPAI"/>
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        <valUSD>38312194.05000000</valUSD>
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        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      </invstOrSec>
      <invstOrSec>
        <name>HIGHWOODS PROPERTIES INC REAL ESTATE INVESTMENT TRUST USD.01</name>
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        <curCd>USD</curCd>
        <valUSD>46993158.00000000</valUSD>
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        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      </invstOrSec>
      <invstOrSec>
        <name>GENTEX CORP COM USD.06</name>
        <lei>549300S3UD8XV1MN0287</lei>
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          <ticker value="GNTX"/>
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        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      </invstOrSec>
      <invstOrSec>
        <name>POLYONE CORP COM NPV</name>
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        <cusip>73179P106</cusip>
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          <ticker value="POL"/>
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        <curCd>USD</curCd>
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        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>Wyndham Hotels &amp; Resorts Inc COM USD 0.01</name>
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          <ticker value="WH"/>
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        <assetCat>EC</assetCat>
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        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>GERMAN AMERICAN BANCORP INC COM USD NPV</name>
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          <ticker value="GABC"/>
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        <assetCat>EC</assetCat>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>EAGLE MATERIALS INC COM USD0.01</name>
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          <ticker value="EXP"/>
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        <assetCat>EC</assetCat>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>COLUMBUS MCKINNON CORP COM USD.01</name>
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          <ticker value="CMCO"/>
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        <assetCat>EC</assetCat>
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        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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        <name>CALERES INC COM USD.01</name>
        <lei>JFU6RQQJ8Z1CPOLBXQ18</lei>
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        <cusip>129500104</cusip>
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          <ticker value="CAL"/>
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        <balance>585354.00000000</balance>
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        <assetCat>EC</assetCat>
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        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>UNIFI INC COM USD.1</name>
        <lei>549300MW5LPO0M2LNO04</lei>
        <title>UNIFI INC COM USD.1</title>
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          <ticker value="UFI"/>
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        <assetCat>EC</assetCat>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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      <invstOrSec>
        <name>THOR INDUSTRIES INC COM USD1</name>
        <lei>254900XZO1228PDSG060</lei>
        <title>THOR INDUSTRIES INC COM USD1</title>
        <cusip>885160101</cusip>
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          <ticker value="THO"/>
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        <assetCat>EC</assetCat>
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        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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        <name>CARTER'S INC COM USD.01</name>
        <lei>5299003WAQK4R3L3ZU36</lei>
        <title>CARTER'S INC COM USD.01</title>
        <cusip>146229109</cusip>
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          <ticker value="CRI"/>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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          <isCashCollateral>N</isCashCollateral>
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        <name>MKS INSTRUMENTS INC COM USD NPV</name>
        <lei>549300KEQATBHAGVF505</lei>
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        <cusip>55306N104</cusip>
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          <ticker value="MKSI"/>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>INTEGER HOLDINGS CORP COM USD.001</name>
        <lei>549300SUD2ED5XG6X569</lei>
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        <cusip>45826H109</cusip>
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          <ticker value="ITGR"/>
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        <fairValLevel>1</fairValLevel>
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        <name>OSHKOSH CORP COM USD.01</name>
        <lei>549300FEKNPCFSA2B506</lei>
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          <ticker value="OSK"/>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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        <name>ASTEC INDUSTRIES INC COM USD.2</name>
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        <fairValLevel>1</fairValLevel>
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        <name>WASHINGTON TRUST BANCORP INC COM USD1</name>
        <lei>J66MZFCNJPP3PERHZW54</lei>
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        <cusip>940610108</cusip>
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        <name>HUNTING PLC ORD GBP.25</name>
        <lei>2138008S5FL78ITZRN66</lei>
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          <ticker value="HTG"/>
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        <isRestrictedSec>N</isRestrictedSec>

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        <name>OLD REPUBLIC INTERNATIONAL CORP COM USD1</name>
        <lei>N/A</lei>
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        <cusip>680223104</cusip>
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          <ticker value="ORI"/>
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        <name>CENTERSTATE BANK CORP COM USD.01</name>
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        <name>BJ's Wholesale Club Holdings Inc COM USD 0.01</name>
        <lei>549300UCIWH1C93V0J03</lei>
        <title>BJ's Wholesale Club Holdings Inc COM USD 0.01</title>
        <cusip>05550J101</cusip>
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          <ticker value="BJ"/>
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        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      <invstOrSec>
        <name>FIRST OF LONG ISLAND CORP COM USD.1</name>
        <lei>N/A</lei>
        <title>FIRST OF LONG ISLAND CORP COM USD.1</title>
        <cusip>320734106</cusip>
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        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
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      </invstOrSec>
      <invstOrSec>
        <name>INSTEEL INDUSTRIES INC COM USD1</name>
        <lei>52990026LKY4MOX3L174</lei>
        <title>INSTEEL INDUSTRIES INC COM USD1</title>
        <cusip>45774W108</cusip>
        <identifiers>
          <ticker value="IIIN"/>
          <other otherDesc="Internal Identifier" value="32164"/>
        </identifiers>
        <balance>896697.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>20059111.89000000</valUSD>
        <pctVal>0.821366568196</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>GLANBIA PLC ORD EUR.06</name>
        <lei>635400SRMCBHVMSKJS84</lei>
        <title>GLANBIA PLC ORD EUR.06</title>
        <cusip>000000000</cusip>
        <identifiers>
          <isin value="IE0000669501"/>
          <other otherDesc="Internal Identifier" value="315162"/>
        </identifiers>
        <balance>1130415.00000000</balance>
        <units>NS</units>
        <currencyConditional curCd="EUR" exchangeRt="0.90637180"/>
        <valUSD>13170429.89000000</valUSD>
        <pctVal>0.539293606803</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>IE</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>2</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>NETSCOUT SYSTEMS INC USD COM.001</name>
        <lei>5493005HZXZ3SPNVCV76</lei>
        <title>NETSCOUT SYSTEMS INC USD COM.001</title>
        <cusip>64115T104</cusip>
        <identifiers>
          <ticker value="NTCT"/>
          <other otherDesc="Internal Identifier" value="63406"/>
        </identifiers>
        <balance>89232.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>2294154.72000000</valUSD>
        <pctVal>0.093939452534</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>FEDERAL SIGNAL CORP COM USD1</name>
        <lei>549300RTXZRPTNP6G884</lei>
        <title>FEDERAL SIGNAL CORP COM USD1</title>
        <cusip>313855108</cusip>
        <identifiers>
          <ticker value="FSS"/>
          <other otherDesc="Internal Identifier" value="553"/>
        </identifiers>
        <balance>293236.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>9430469.76000000</valUSD>
        <pctVal>0.386152319491</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>LCI INDUSTRIES COM USD.01</name>
        <lei>549300E1B98YNJ1WIQ04</lei>
        <title>LCI INDUSTRIES COM USD.01</title>
        <cusip>50189K103</cusip>
        <identifiers>
          <ticker value="LCII"/>
          <other otherDesc="Internal Identifier" value="235374"/>
        </identifiers>
        <balance>29793.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>3216750.21000000</valUSD>
        <pctVal>0.131717251253</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>REGAL BELOIT CORP COM USD.01</name>
        <lei>QH78R09VCJGQKPBPYU33</lei>
        <title>REGAL BELOIT CORP COM USD.01</title>
        <cusip>758750103</cusip>
        <identifiers>
          <ticker value="RBC"/>
          <other otherDesc="Internal Identifier" value="31747"/>
        </identifiers>
        <balance>727700.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>57095342.00000000</valUSD>
        <pctVal>2.337900370452</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>COHERENT INC COM USD.01</name>
        <lei>549300RYOCKUMWACR010</lei>
        <title>COHERENT INC COM USD.01</title>
        <cusip>192479103</cusip>
        <identifiers>
          <ticker value="COHR"/>
          <other otherDesc="Internal Identifier" value="35664"/>
        </identifiers>
        <balance>336565.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>47600387.95000000</valUSD>
        <pctVal>1.949107593084</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>CORP</issuerCat>
        <invCountry>US</invCountry>

        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
    </invstOrSecs>
    <explntrNotes>
      <explntrNote note="Monthly returns presented in Item B.5(a) have been calculated without deducting any applicable sales loads or redemption fees. " noteItem="B.5.a"/>
    </explntrNotes>
    <signature>
      <ncom:dateSigned>2020-02-29</ncom:dateSigned>
      <ncom:nameOfApplicant>Robert Kubilis</ncom:nameOfApplicant>
      <ncom:signature>Robert Kubilis</ncom:signature>
      <ncom:signerName>Robert Kubilis</ncom:signerName>
      <ncom:title>Chief Financial Officer, Chief Accounting Officer and Treasurer</ncom:title>
    </signature>
  </formData>
  <documents>XXXX</documents>
</edgarSubmission>
