<PAGE> PAGE 1
000 A000000 06/30/96
000 C000000 0000014698
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 FRANKLIN PREMIER RETURN FUND
001 B000000 811-730
001 C000000 4153122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94404
002 D020000 1585
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 FRANKLIN ADVISERS, INC.
008 B000001 A
008 C000001 801-26292
008 D010001 SAN MATEO
008 D020001 CA
008 D030001 94403
008 D040001 7777
011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
011 C010001 SAN MATEO
011 C020001 CA
011 C030001 94403
011 C040001 7777
012 A000001 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-1036
012 C010001 SAN MATEO
012 C020001 CA
012 C030001 94403
<PAGE> PAGE 2
012 C040001 7777
013 A000001 COOPERS & LYBRAND L.L.P.
013 B010001 SAN FRANCISCO
013 B020001 CA
013 B030001 94105
013 B040001 2119
014 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
014 B000001 8-5889
015 A000001 BANK OF AMERICA NT & SA
015 B000001 C
015 C010001 SAN FRANCISCO
015 C020001 CA
015 C030001 94104
015 C040001 1502
015 E010001 X
015 A000002 CITIBANK DELAWARE
015 B000002 C
015 C010002 NEW CASTLE
015 C020002 DE
015 C030002 19720
015 C040002 2409
015 E010002 X
015 A000003 THE BANK OF NEW YORK
015 B000003 C
015 C010003 NEW YORK
015 C020003 NY
015 C030003 10286
015 E010003 X
015 A000004 THE BANK OF BOSTON
015 B000004 S
015 C010004 BUENOS AIRES
015 D010004 ARGENTINA
015 E040004 X
015 A000005 AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED
015 B000005 S
015 C010005 MELBOURNE
015 D010005 AUSTRALIA
015 E040005 X
015 A000006 GIROCREDIT BANK AG DER OSTERREICHISCHEN SPARK
015 B000006 S
015 C010006 VIENNA
015 D010006 AUSTRIA
015 E040006 X
015 A000007 STANDARD CHARTERED BANK PLC (SCB)
015 B000007 S
015 C010007 DHAKA
015 D010007 BANGLADESH
015 E040007 X
015 A000008 BANQUE BRUXELLES LAMBERT (BBL)
015 B000008 S
015 C010008 BRUSSELS
<PAGE> PAGE 3
015 D010008 BELGIUM
015 E040008 X
015 A000009 THE BANK OF BOSTON
015 B000009 S
015 C010009 SAO PAULO
015 D010009 BRAZIL
015 E040009 X
015 A000010 THE ROYAL TRUST CORPORATION OF CANADA
015 B000010 S
015 C010010 MONTREAL
015 D010010 CANADA
015 E040010 X
015 A000011 THE BANK OF BOSTON
015 B000011 S
015 C010011 SANTIAGO
015 D010011 CHILE
015 E040011 X
015 A000012 BANCO DECHILE
015 B000012 S
015 C010012 SANTIAGO
015 D010012 CHILE
015 E040012 X
015 A000013 STANDARD CHARTERED BANK
015 B000013 S
015 C010013 SHANGHAI
015 D010013 CHINA
015 E040013 X
015 A000014 STANDARD CHARTERED BANK
015 B000014 S
015 C010014 SHENZHEN
015 D010014 CHINA
015 E040014 X
015 A000015 CITIBANK, N.A. VIA CITITRUST COLOMBIA S.A.
015 B000015 S
015 C010015 BOGOTA
015 D010015 COLOMBIA
015 E040015 X
015 A000016 CESKOSLOVENSKA OBCHODNI BANKA (CSOB)
015 B000016 S
015 C010016 PRAHA (PRAGUE)
015 D010016 CZECH REPUBLIC
015 E040016 X
015 A000017 DEN DANSKE BANK
015 B000017 S
015 C010017 COPENHAGEN
015 D010017 DENMARK
015 E040017 X
015 A000018 CEDEL
015 B000018 S
015 C010018 LUXEMBOURG CITY
015 D010018 LUXEMBOURG
<PAGE> PAGE 4
015 E040018 X
015 A000019 FIRST CHICAGO CLEARING CENTRE (FCCC)
015 B000019 S
015 C010019 LONDON
015 D010019 UNITED KINGDOM
015 E040019 X
015 A000020 MERITA BANK (MB)
015 B000020 S
015 C010020 HELSINKI
015 D010020 FINLAND
015 E040020 X
015 A000021 BANQUE PARIBAS
015 B000021 S
015 C010021 PARIS
015 D010021 FRANCE
015 E040021 X
015 A000022 DRESDNER BANK AG
015 B000022 S
015 C010022 FRANKFURT
015 D010022 GERMANY
015 E040022 X
015 A000023 ALPHA CREDIT BANK A.E.
015 B000023 S
015 C010023 ATHENS
015 D010023 GREECE
015 E040023 X
015 A000024 THE HONGKONG & SHANGHAI BANKING CORP LTD
015 B000024 S
015 C010024 HONG KONG
015 D010024 HONG KONG
015 E040024 X
015 A000025 CITIBANK, N.A.
015 B000025 S
015 C010025 BUDAPEST
015 D010025 HUNGARY
015 E040025 X
015 A000026 THE HONGKONG & SHANGHAI BANKING CORP LTD
015 B000026 S
015 C010026 BOMBAY
015 D010026 INDIA
015 E040026 X
015 A000027 THE HONGKONG & SHANGHAI BANKING CORP LTD
015 B000027 S
015 C010027 JAKARTA
015 D010027 INDONESIA
015 E040027 X
015 A000028 ALLIED IRISH BANK (AIB)
015 B000028 S
015 C010028 DUBLIN
015 D010028 IRELAND
015 E040028 X
<PAGE> PAGE 5
015 A000029 ISRAEL DISCOUNT BANK
015 B000029 S
015 C010029 TEL AVIV
015 D010029 ISRAEL
015 E040029 X
015 A000030 BANCA COMMERCIALE ITALIANA (BCI)
015 B000030 S
015 C010030 MILAN
015 D010030 ITALY
015 E040030 X
015 A000031 YASUDA TRUST AND BANKING COMPANY LIMITED
015 B000031 S
015 C010031 TOKYO
015 D010031 JAPAN
015 E040031 X
015 A000032 THE HONGKONG BANK MALAYSIA BERHAD (HBMB)
015 B000032 S
015 C010032 KUALA LUMPUR
015 D010032 MALAYSIA
015 E040032 X
015 A000033 BANCO NACIONAL DE MEXICO
015 B000033 S
015 C010033 MEXICO CITY
015 D010033 MEXICO
015 E040033 X
015 A000034 BANQUE COMMERCIALE DU MAROC (BCM)
015 B000034 S
015 C010034 CASABLANCA
015 D010034 MOROCCO
015 E040034 X
015 A000035 MEESPIERSON
015 B000035 S
015 C010035 AMSTERDAM
015 D010035 NETHERLANDS
015 E040035 X
015 A000036 AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED
015 B000036 S
015 C010036 WELLINGTON
015 D010036 NEW ZEALAND
015 E040036 X
015 A000037 DEN NORSKE BANK A.S.
015 B000037 S
015 C010037 BERGEN/OSLO
015 D010037 NORWAY
015 E040037 X
015 A000038 STANDARD CHARTERED BANK (SCB)
015 B000038 S
015 C010038 KARACHI
015 D010038 PAKISTAN
015 E040038 X
015 A000039 CITIBANK, N.A.
<PAGE> PAGE 6
015 B000039 S
015 C010039 LIMA
015 D010039 PERU
015 E040039 X
015 A000040 THE HONGKONG & SHANGHAI BANKING CORP LTD
015 B000040 S
015 C010040 MANILA
015 D010040 PHILIPPINES
015 E040040 X
015 A000041 BANK HANDLOWY W WARSZAWIE S.A.
015 B000041 S
015 C010041 WARSAW
015 D010041 POLAND
015 E040041 X
015 A000042 BANCO COMERCIAL PORTUGUES, S.A. (BCP)
015 B000042 S
015 C010042 LISBON
015 D010042 PORTUGAL
015 E040042 X
015 A000043 UNITED OVERSEAS BANK (UOB)
015 B000043 S
015 C010043 SINGAPORE
015 D010043 SINGAPORE
015 E040043 X
015 A000044 STANDARD BANK OF SOUTH AFRICA LIMITED (SBSA)
015 B000044 S
015 C010044 JOHANNESBURG
015 D010044 SOUTH AFRICA
015 E040044 X
015 A000045 SEOULBANK (SB)
015 B000045 S
015 C010045 SEOUL
015 D010045 SOUTH KOREA
015 E040045 X
015 A000046 BANCO BILBAO VIZCAYA (BBV)
015 B000046 S
015 C010046 MADRID/BILBAO
015 D010046 SPAIN
015 E040046 X
015 A000047 STANDARD CHARTERED BANK (SCB)
015 B000047 S
015 C010047 COLOMBO
015 D010047 SRI LANKA
015 E040047 X
015 A000048 SKANDINAVISKA ENSKILDA BANKEN (SEB)
015 B000048 S
015 C010048 STOCKHOLM
015 D010048 SWEDEN
015 E040048 X
015 A000049 UNION BANK OF SWITZERLAND (UBS)
015 B000049 S
<PAGE> PAGE 7
015 C010049 ZURICH
015 D010049 SWITZERLAND
015 E040049 X
015 A000050 THE HONGKONG & SHANGHAI BANKING CORP LTD
015 B000050 S
015 C010050 TAIPEI
015 D010050 TAIWAN
015 E040050 X
015 A000051 THE SIAM COMMERCIAL BANK PUBLIC CO LTD (SCB)
015 B000051 S
015 C010051 BANGKOK
015 D010051 THAILAND
015 E040051 X
015 A000052 CITIBANK, N.A.
015 B000052 S
015 C010052 ISTANBUL
015 D010052 TURKEY
015 E040052 X
015 A000053 THE BANK OF NEW YORK
015 B000053 S
015 C010053 LONDON
015 D010053 UNITED KINGDOM
015 E040053 X
015 A000054 THE BANK OF BOSTON
015 B000054 S
015 C010054 MONTEVIDEO
015 D010054 URUGUAY
015 E040054 X
015 A000055 CITIBANK, N.A.
015 B000055 S
015 C010055 CARACAS
015 D010055 VENEZUELA
015 E040055 X
018 000000 Y
019 A000000 Y
019 B000000 191
019 C000000 FRNKTEMGRP
020 A000001 UBS SECURITIES LLC
020 B000001 13-2932996
020 C000001 3
020 A000002 BEAR STEARNS & CO INC
020 B000002 13-3299429
020 C000002 2
020 A000003 THE CHICAGO CORPORATION
020 B000003 36-2549961
020 C000003 2
020 A000004 MORGAN (JP) SECURITIES INC
020 B000004 13-3224016
020 C000004 2
020 A000005 EDWARDS (AG) & SONS INC
020 B000005 43-0895447
<PAGE> PAGE 8
020 C000005 2
020 A000006 ROBERTSON STEPHENS & CO
020 B000006 94-2524501
020 C000006 1
020 A000007 MERRILL LYNCH PIERCE FENNER
020 B000007 13-5674085
020 C000007 1
020 A000008 HAMBRECHT & QUIST INC
020 B000008 94-2856935
020 C000008 1
020 A000009 PRUDENTIAL BACHE SECURITIES
020 B000009 22-2347336
020 C000009 1
020 A000010 DAIN BOSWORTH INC
020 B000010 41-0212020
020 C000010 1
021 000000 26
022 A000001 SBCI SWISS BANK CORP INV
022 B000001 13-2639550
022 C000001 84066
022 D000001 0
022 A000002 FUJI SECURITIES INC
022 B000002 13-3038090
022 C000002 70627
022 D000002 0
022 A000003 DAIWA SECURITIES AMERICA
022 B000003 13-5680329
022 C000003 68451
022 D000003 0
022 A000004 UBS SECURITIES LLC
022 B000004 13-2932996
022 C000004 58122
022 D000004 0
022 A000005 DONALDSON LUFKIN & JENRETTE
022 B000005 13-2741729
022 C000005 57527
022 D000005 0
022 A000006 BEAR, STEARNS & CO INC
022 B000006 13-3299429
022 C000006 52107
022 D000006 342
022 A000007 BANK OF AMERICA NT & SA
022 B000007 94-1687665
022 C000007 48715
022 D000007 0
022 A000008 BANKERS TRUST CO
022 B000008 13-4941247
022 C000008 47471
022 D000008 0
022 A000009 LEHMAN BROTHERS SECS
022 B000009 13-2518466
<PAGE> PAGE 9
022 C000009 33304
022 D000009 0
022 A000010 NIKK0 SECURITIES CO INTL INC
022 B000010 94-1302123
022 C000010 31794
022 D000010 0
023 C000000 578992
023 D000000 2400
024 000000 Y
025 A000001 BANKAMERICA CORPORATION
025 B000001 94-1681731
025 C000001 E
025 D000001 379
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 690
028 A020000 0
028 A030000 0
028 A040000 1280
028 B010000 999
028 B020000 0
028 B030000 0
028 B040000 464
028 C010000 1148
028 C020000 218
028 C030000 0
028 C040000 341
028 D010000 2000
028 D020000 0
028 D030000 0
028 D040000 752
028 E010000 1727
028 E020000 0
028 E030000 0
028 E040000 557
028 F010000 2068
<PAGE> PAGE 10
028 F020000 171
028 F030000 0
028 F040000 414
028 G010000 8632
028 G020000 389
028 G030000 0
028 G040000 3808
028 H000000 8632
029 000000 Y
030 A000000 142
030 B000000 4.50
030 C000000 0.00
031 A000000 16
031 B000000 0
032 000000 126
033 000000 0
034 000000 Y
035 000000 0
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 Y
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 38
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 100000
048 A020000 0.625
048 B010000 150000
048 B020000 0.500
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
<PAGE> PAGE 11
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 250000
048 K020000 0.450
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 100
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
<PAGE> PAGE 12
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 Y
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 Y
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 Y
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
<PAGE> PAGE 13
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 11970
071 B000000 10052
071 C000000 36310
071 D000000 28
072 A000000 6
072 B000000 363
072 C000000 281
072 D000000 0
072 E000000 0
072 F000000 135
072 G000000 0
072 H000000 0
072 I000000 19
072 J000000 1
072 K000000 7
072 L000000 5
072 M000000 3
072 N000000 9
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 12
072 S000000 0
072 T000000 41
072 U000000 0
072 V000000 0
072 W000000 2
072 X000000 234
072 Y000000 0
072 Z000000 410
072AA000000 1065
072BB000000 452
072CC010000 2723
072CC020000 0
072DD010000 488
072DD020000 0
072EE000000 0
073 A010000 0.0850
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 21
074 B000000 5997
074 C000000 1997
074 D000000 6467
074 E000000 435
074 F000000 32197
<PAGE> PAGE 14
074 G000000 7
074 H000000 0
074 I000000 0
074 J000000 652
074 K000000 0
074 L000000 183
074 M000000 4
074 N000000 47960
074 O000000 84
074 P000000 43
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 42
074 S000000 0
074 T000000 47791
074 U010000 6093
074 U020000 0
074 V010000 7.84
074 V020000 0.00
074 W000000 0.0000
074 X000000 3824
074 Y000000 3101
075 A000000 0
075 B000000 42726
076 000000 0.00
077 A000000 N
078 000000 N
080 C000000 0
081 B000000 0
082 B000000 0
083 B000000 0
084 B000000 0
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN PREMIER RETURN FUND JUNE 30, 1996 SEMI-ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 36,743,067
<INVESTMENTS-AT-VALUE> 41,103,362
<RECEIVABLES> 6,831,862
<ASSETS-OTHER> 24,708
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 47,959,932
<PAYABLE-FOR-SECURITIES> 84,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 85,221
<TOTAL-LIABILITIES> 169,221
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 43,180,093
<SHARES-COMMON-STOCK> 6,092,653
<SHARES-COMMON-PRIOR> 5,423,517
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (6,801)
<ACCUMULATED-NET-GAINS> 257,124
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,360,295
<NET-ASSETS> 47,790,711
<DIVIDEND-INCOME> 281,324
<INTEREST-INCOME> 363,182
<OTHER-INCOME> 0
<EXPENSES-NET> (234,233)
<NET-INVESTMENT-INCOME> 410,273
<REALIZED-GAINS-CURRENT> 613,226
<APPREC-INCREASE-CURRENT> 2,723,218
<NET-CHANGE-FROM-OPS> 3,746,717
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (487,788)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,125,011
<NUMBER-OF-SHARES-REDEEMED> (506,392)
<SHARES-REINVESTED> 50,517
<NET-CHANGE-IN-ASSETS> 8,472,068
<ACCUMULATED-NII-PRIOR> 70,714
<ACCUMULATED-GAINS-PRIOR> (356,102)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 135,317
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 234,233
<AVERAGE-NET-ASSETS> 42,726,427
<PER-SHARE-NAV-BEGIN> 7.250
<PER-SHARE-NII> .070
<PER-SHARE-GAIN-APPREC> .605
<PER-SHARE-DIVIDEND> (.085)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 7.840
<EXPENSE-RATIO> 1.100
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
