<PAGE> PAGE 1
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007 C010600 6
007 C010700 7
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"011 A00AA01 FRANKLIN TEMPLETON DISTRIBUTORS, INC."
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<PAGE> PAGE 2
011 C03AA01 33701
011 C04AA01 3628
"012 A00AA01 FRANKLIN TEMPLETON INVESTOR SERVICES, INC."
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015 E01AA01 X
"015 A00AA02 CHASE MANHATTAN BANK, N.A."
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<PAGE> PAGE 3
015 C01AA07 TORONTO
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<PAGE> PAGE 4
015 C01AA16 ATHENS
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"015 A00AA21 CHASE MANHATTAN BANK, N.A."
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<PAGE> PAGE 5
"015 A00AA25 THE CHASE MANHATTAN BANK, N.A."
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<PAGE> PAGE 6
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<PAGE> PAGE 7
015 D01AA42 CHINA
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<PAGE> PAGE 8
015 D01AA51 MAURITIUS
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 17
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<PAGE> PAGE 18
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042 F000200 0
042 G000200 0
042 H000200 100
043 000200 14673
044 000200 0
045 000200 Y
046 000200 N
047 000200 Y
048 000200 0.000
048 A010200 200000
048 A020200 0.750
048 B010200 1100000
048 B020200 0.675
048 C010200 0
048 C020200 0.000
048 D010200 0
048 D020200 0.000
048 E010200 0
048 E020200 0.000
048 F010200 0
048 F020200 0.000
048 G010200 0
048 G020200 0.000
048 H010200 0
048 H020200 0.000
048 I010200 0
048 I020200 0.000
048 J010200 0
048 J020200 0.000
048 K010200 1300000
048 K020200 0.600
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 N
054 A000200 Y
054 B000200 Y
054 C000200 Y
054 D000200 N
054 E000200 N
054 F000200 N
054 G000200 N
054 H000200 Y
054 I000200 N
<PAGE> PAGE 19
054 J000200 Y
054 K000200 N
054 L000200 Y
054 M000200 Y
054 N000200 N
054 O000200 Y
055 A000200 N
055 B000200 N
056 000200 Y
057 000200 N
058 A000200 N
059 000200 Y
060 A000200 Y
060 B000200 Y
061 000200 100
062 A000200 N
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 0
063 B000200 0.0
066 A000200 Y
066 B000200 N
066 C000200 N
066 D000200 Y
066 E000200 N
066 F000200 N
066 G000200 N
067 000200 N
068 A000200 N
068 B000200 Y
069 000200 N
070 A010200 Y
070 A020200 N
070 B010200 N
070 B020200 N
070 C010200 N
<PAGE> PAGE 20
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 N
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 N
070 J020200 N
070 K010200 Y
070 K020200 Y
070 L010200 Y
070 L020200 Y
070 M010200 Y
070 M020200 Y
070 N010200 N
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 3037830
071 B000200 983398
071 C000200 4516125
071 D000200 22
072 A000200 12
072 B000200 98439
072 C000200 132138
072 D000200 0
072 E000200 0
072 F000200 36111
072 G000200 4673
072 H000200 0
072 I000200 5675
072 J000200 2953
072 K000200 825
072 L000200 923
072 M000200 74
072 N000200 763
072 O000200 0
072 P000200 0
<PAGE> PAGE 21
072 Q000200 0
072 R000200 52
072 S000200 16
072 T000200 14673
072 U000200 0
072 V000200 0
072 W000200 147
072 X000200 66885
072 Y000200 0
072 Z000200 163692
072AA000200 283863
072BB000200 64637
072CC010200 0
072CC020200 131760
072DD010200 84335
072DD020200 0
072EE000200 275006
073 A010200 0.1600
073 A020200 0.0000
073 B000200 0.5100
073 C000200 0.0000
074 A000200 259
074 B000200 0
074 C000200 1248957
074 D000200 627240
074 E000200 159858
074 F000200 4927653
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 66715
074 K000200 0
074 L000200 64836
074 M000200 0
074 N000200 7095518
074 O000200 73407
074 P000200 0
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 17445
074 S000200 0
074 T000200 7004666
074 U010200 721255
074 U020200 6612
074 V010200 9.62
074 V020200 9.59
074 W000200 0.0000
074 X000200 381367
074 Y000200 0
<PAGE> PAGE 22
075 A000200 0
075 B000200 5830965
076 000200 0.00
SIGNATURE JAMES BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON FOREIGN FUND AUGUST 31, 1995 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 021
<NAME> TEMPLETON FOREIGN FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 6430661660
<INVESTMENTS-AT-VALUE> 6963707668
<RECEIVABLES> 131551199
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 258654
<TOTAL-ASSETS> 7095517521
<PAYABLE-FOR-SECURITIES> 73407334
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17444446
<TOTAL-LIABILITIES> 90851780
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6145622723
<SHARES-COMMON-STOCK> 721254797<F1>
<SHARES-COMMON-PRIOR> 500863467<F1>
<ACCUMULATED-NII-CURRENT> 139048660
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 186948350
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 533046008
<NET-ASSETS> 7004665741
<DIVIDEND-INCOME> 132137764
<INTEREST-INCOME> 98438826
<OTHER-INCOME> 0
<EXPENSES-NET> 66884947
<NET-INVESTMENT-INCOME> 163691643
<REALIZED-GAINS-CURRENT> 219225783
<APPREC-INCREASE-CURRENT> (131760311)
<NET-CHANGE-FROM-OPS> 251157115
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (84334594)
<DISTRIBUTIONS-OF-GAINS> (275006347)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 294214786<F1>
<NUMBER-OF-SHARES-REDEEMED> (106358799)<F1>
<SHARES-REINVESTED> 32535343<F1>
<NET-CHANGE-IN-ASSETS> 1990228133
<ACCUMULATED-NII-PRIOR> 58852340
<ACCUMULATED-GAINS-PRIOR> 243568185
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 36110792
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 66884947
<AVERAGE-NET-ASSETS> 5821928759<F1>
<PER-SHARE-NAV-BEGIN> 10.01<F1>
<PER-SHARE-NII> .23<F1>
<PER-SHARE-GAIN-APPREC> .05<F1>
<PER-SHARE-DIVIDEND> (.16)<F1>
<PER-SHARE-DISTRIBUTIONS> (.51)<F1>
<RETURNS-OF-CAPITAL> 0<F1>
<PER-SHARE-NAV-END> 9.62<F1>
<EXPENSE-RATIO> 1.15<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>EFFECTIVE MAY 1, 1995, THE FUND OFFERED TWO CLASSES OF SHARES: CLASS I
AND CLASS II SHARES. INFORMATION IS FOR CLASS I SHARES ONLY.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON FOREIGN FUND AUGUST 31, 1995 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 022
<NAME> TEMPLETON FOREIGN FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 6430661660
<INVESTMENTS-AT-VALUE> 6963707668
<RECEIVABLES> 131551199
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 258654
<TOTAL-ASSETS> 7095517521
<PAYABLE-FOR-SECURITIES> 73407334
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17444446
<TOTAL-LIABILITIES> 90851780
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6145622723
<SHARES-COMMON-STOCK> 6612262<F1>
<SHARES-COMMON-PRIOR> 0<F1>
<ACCUMULATED-NII-CURRENT> 139048660
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 186948350
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 533046008
<NET-ASSETS> 7004665741
<DIVIDEND-INCOME> 132137764
<INTEREST-INCOME> 98438826
<OTHER-INCOME> 0
<EXPENSES-NET> 66884947
<NET-INVESTMENT-INCOME> 163691643
<REALIZED-GAINS-CURRENT> 219225783
<APPREC-INCREASE-CURRENT> (131760311)
<NET-CHANGE-FROM-OPS> 251157115
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (84334594)
<DISTRIBUTIONS-OF-GAINS> (275006347)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6634457<F1>
<NUMBER-OF-SHARES-REDEEMED> (22195)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 1990228133
<ACCUMULATED-NII-PRIOR> 58852340
<ACCUMULATED-GAINS-PRIOR> 243568185
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 36110792
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 66884947
<AVERAGE-NET-ASSETS> 9036168<F1>
<PER-SHARE-NAV-BEGIN> 9.16<F1>
<PER-SHARE-NII> .03<F1>
<PER-SHARE-GAIN-APPREC> .40<F1>
<PER-SHARE-DIVIDEND> 0<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0<F1>
<PER-SHARE-NAV-END> 9.59<F1>
<EXPENSE-RATIO> 1.90<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>EFFECTIVE MAY 1, 1995 THR FUND OFFERED TWO CLASSES OF SHARES: CLASS I AND
CLASS II SHARES. INFORMATION IS FOR CLASS II SHARES ONLY.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON WORLD FUND AUGUST 31, 1995 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> TEMPLETON WORLD FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 4807740096
<INVESTMENTS-AT-VALUE> 5868023560
<RECEIVABLES> 70289006
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 453081
<TOTAL-ASSETS> 5938765647
<PAYABLE-FOR-SECURITIES> 52251004
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9924165
<TOTAL-LIABILITIES> 62175169
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4131325086
<SHARES-COMMON-STOCK> 350194730<F1>
<SHARES-COMMON-PRIOR> 317781804<F1>
<ACCUMULATED-NII-CURRENT> 103788713
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 581193215
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1060283464
<NET-ASSETS> 5876590478
<DIVIDEND-INCOME> 140143015
<INTEREST-INCOME> 32812620
<OTHER-INCOME> 0
<EXPENSES-NET> 56195637
<NET-INVESTMENT-INCOME> 116759998
<REALIZED-GAINS-CURRENT> 622514983
<APPREC-INCREASE-CURRENT> (213111140)
<NET-CHANGE-FROM-OPS> 526163841
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (90201924)
<DISTRIBUTIONS-OF-GAINS> (466541300)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26269051<F1>
<NUMBER-OF-SHARES-REDEEMED> (27844607)<F1>
<SHARES-REINVESTED> 33988482<F1>
<NET-CHANGE-IN-ASSETS> 454898987
<ACCUMULATED-NII-PRIOR> 77691521
<ACCUMULATED-GAINS-PRIOR> 424758650
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 33261874
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 56195637
<AVERAGE-NET-ASSETS> 5355230969<F1>
<PER-SHARE-NAV-BEGIN> 17.06<F1>
<PER-SHARE-NII> .33<F1>
<PER-SHARE-GAIN-APPREC> 1.11<F1>
<PER-SHARE-DIVIDEND> (.28)<F1>
<PER-SHARE-DISTRIBUTIONS> (1.46)<F1>
<RETURNS-OF-CAPITAL> 0<F1>
<PER-SHARE-NAV-END> 16.76<F1>
<EXPENSE-RATIO> 1.05<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>EFFECTIVE MAY 1, 1995 THE FUND OFFERED TWO CLASSES OF SHARES: CLASS I AND
CLASS II SHARES. INFORMATION IS FOR CLASS I SHARES ONLY.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON WORLD FUND AUGUST 31, 1995 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> TEMPLETON WORLD FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 4807740096
<INVESTMENTS-AT-VALUE> 5868023560
<RECEIVABLES> 70289006
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 453081
<TOTAL-ASSETS> 5938765647
<PAYABLE-FOR-SECURITIES> 52251004
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9924165
<TOTAL-LIABILITIES> 62175169
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4131325086
<SHARES-COMMON-STOCK> 456227<F1>
<SHARES-COMMON-PRIOR> 0<F1>
<ACCUMULATED-NII-CURRENT> 103788713
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 581193215
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1060283464
<NET-ASSETS> 5876590478
<DIVIDEND-INCOME> 140143015
<INTEREST-INCOME> 32812620
<OTHER-INCOME> 0
<EXPENSES-NET> 56195637
<NET-INVESTMENT-INCOME> 116759998
<REALIZED-GAINS-CURRENT> 622514983
<APPREC-INCREASE-CURRENT> (213111140)
<NET-CHANGE-FROM-OPS> 526163841
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (90201924)
<DISTRIBUTIONS-OF-GAINS> (466541300)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 471609<F1>
<NUMBER-OF-SHARES-REDEEMED> (15382)<F1>
<SHARES-REINVESTED> 0<F1>
<NET-CHANGE-IN-ASSETS> 454898987
<ACCUMULATED-NII-PRIOR> 77691521
<ACCUMULATED-GAINS-PRIOR> 424758650
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 33261874
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 56195637
<AVERAGE-NET-ASSETS> 1118345<F1>
<PER-SHARE-NAV-BEGIN> 15.36<F1>
<PER-SHARE-NII> .03<F1>
<PER-SHARE-GAIN-APPREC> 1.32<F1>
<PER-SHARE-DIVIDEND> 0<F1>
<PER-SHARE-DISTRIBUTIONS> 0<F1>
<RETURNS-OF-CAPITAL> 0<F1>
<PER-SHARE-NAV-END> 16.71<F1>
<EXPENSE-RATIO> 1.82<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>EFFECTIVE MAY 1, 1995, THE FUND OFFERED TWO CLASSES OF SHARES: CLASS I AND
CLASS II SHARES. INFORMATION IS FOR CLASS II SHARES ONLY.
</FN>
</TABLE>
The Board of Directors and Shareholders
Templeton Funds, Inc.
In planning and performing our audits of the financial statements of Templeton
World Fund and Templeton Foreign Fund series of Templeton Funds, Inc. for the
year ended August 31, 1995, we considered their internal control structure,
including procedures for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not to provide
assurance on the internal control structure.
The management of Templeton Funds, Inc. is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
August 31, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/MCGLADREY & PULLEN, LLP
McGladrey & Pullen, LLP
New York, New York
September 29, 1995
