<PAGE>
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Templeton Quarterly Shareholder Update May 31, 1995
World
Fund For 17 years the Templeton World Fund has been seeking long-term
capital growth by investing in securities of companies or
governments located throughout the world. The fund's portfolio
is invested in securities of both U.S. and foreign issuers.
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Performance The chart to the right illustrates the cumulative total return
of an assumed $10,000 investment in Class I shares of Templeton
World Fund at its inception on January 17, 1978, with income
dividends and capital gains reinvested through May 31, 1995./1/
Templeton World Fund Class I
Total Returns
on 5/31/95
[MOUNTAIN CHART APPEARS HERE SHOWING AN INITIAL INVESTMENT OF $10,000 MADE ON
1/17/78 (INITIAL NET ASSET VALUE OF $9,425) WOULD BE VALUED AT $125,623 ON
5/31/95]
Cumulative/1/ $10,000
One- Five- Cost of
Year Year investment
3.91% 62.97% 1/17/78
Ten- Since Initial net
Year Inception (1/17/78) asset value
229.36% 1,156.23% $9,425
Average Annual/2/
One- Five-
Year Year
3.91% 10.26%
Ten- Since
Year Inception (1/17/78)
12.66% 15.69%
1. Cumulative total return shows the change in value of an
investment over the periods indicated.
2. Average annual total return represents the average annual
change in value of an investment over the stated periods.
All total return quotations and performance results reflect the
deduction of the maximum 5.75% initial sales charge and a
proportional share of the fund's expenses on an annual basis;
they also assume that all dividends and capital gains
distributions were reinvested when paid. Prior to July 1, 1992,
fund shares were offered at a higher sales charge. Thus, actual
total returns for purchasers of shares during that period would
have been somewhat lower than noted above.
The performance shown represents past performance and is not an
indication of future results. This was a period of generally
rising securities prices.
The historical performance data shown above pertain only to
Class I shares of the fund. Class II shares, which the fund
began offering on May 1, 1995, are subject to different fees and
expenses, which will affect their performance. Please see the
prospectus for more details regarding Class I and Class II
shares.
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Portfolio The Templeton World Fund's portfolio is diversified across more
than two dozen countries and 32 industries. The chart to the
right shows how the fund's assets were invested globally on
May 31, 1995.
For current information about the fund's holdings, call Franklin
Templeton Fund Information, toll free, at 1-800/DIAL BEN
(1-800/342-5236).
Geographic Distribution on 5/31/95
Based on Total Net Assets
[PIE CHART APPEARS HERE]
<TABLE>
<CAPTION>
Description Amount
-------------------- ----------------
<S> <C>
U. S. Stocks 38.4%
European Stocks 29.9%
Asian Stocks 9.1%
Australian New Zealand
Stocks 6.5%
Latin America Stocks 5.3%
Short - term & Cash
Equivalents 4.7%
Fixed Income Securities 3.3%
Other Stocks 2.8%
</TABLE>
<PAGE>
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Index The chart to the right compares the cumulative total return of
Comparison the fund's Class I shares with the return of the unmanaged
Morgan Stanley Capital International World Index for the five-
year period ended 5/31/95./3,4/
MSCI World Index /3/ 44.12%
Templeton World Fund /4/ 62.97%
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Top Ten Percentage of
Equity Total Net Assets
Holdings/5/ ----------------------------------------------------------------
Merrill Lynch & Co., Inc. 2.2%
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Federal National Mortgage Association 1.6%
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Boeing Co. 1.4%
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HSBC Holdings PLC 1.4%
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Aluminum Company of America (ALCOA) 1.3%
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Asea AB 1.3%
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Ford Motor Co. 1.2%
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Reynolds Metals Co. 1.2%
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Georgia Pacific Corp. 1.1%
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Jardine Strategic Holdings Ltd. 1.1%
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A Few Words The fund's share price and returns will fluctuate with market
About Risk conditions, currencies, and the economic and political climates
where investments are made, and you may have a gain or loss when
you sell your shares. These special considerations are discussed
in the prospectus.
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Questions -------------------------------------------------------
About Upcoming Communications Mailing Date
Your -------------------------------------------------------
Account? Annual Report October 1995
Quarterly Shareholder Update January 1996
Franklin Semi-Annual Report April 1996
Templeton -------------------------------------------------------
Account
Services
1-800/393-3001
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Principal 3. The MSCI World Index does not contain cash (the fund
Underwriter generally carries a certain percentage of cash at any given
time), and does not include sales charges or management fees.
Franklin One cannot invest directly in an index. Total return includes
Templeton reinvested dividends.
Distributors,
Inc. 4. Cumulative total return shows the change in value of an
700 Central investment over the specified periods. These calculations
Avenue include the deduction of the fund's 5.75% maximum initial sales
St. Petersburg, charge and assume reinvestment of dividends and capital gains at
Florida net asset value. Prior to July 1, 1992, fund shares were offered
33701-3628 at a higher sales charge. Thus, actual total returns for
purchasers of shares during that period would have been somewhat
lower than noted above.
5. For more current information about the fund's holdings, call
Franklin Templeton Fund Information, toll free, at
1-800/342-5236.
The historical performance data shown above pertain only to
Class I shares of the fund. Class II shares, which the fund
began offering on May 1, 1995, are subject to different fees and
expenses, which will affect their performance. Please see the
prospectus for more details regarding Class I and Class II
shares.
This report must be preceded or accompanied by a prospectus of
Templeton World Fund, which contains more information about the
sales charge and expenses. For information about the other
Templeton Funds, request a prospectus from your securities
dealer or from Franklin Templeton Distributors, Inc. Please read
the prospectus carefully before investing or sending money.
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Mutual funds, annuities, and other investment products:
. are not FDIC insured;
. are not deposits or obligations of, or guaranteed by, any
financial institution;
. are subject to investment risks, including possible loss of
the principal amount invested.
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NASDAQ: TEMWX Templeton Fund #102
CUSIP: 880 196 100 TL102 QU 7/95
