PRESIDENT'S LETTER
Table of Contents
President's Letter 1
Economic Overview 6
Franklin Templeton German
Government Bond Fund 8
Franklin Templeton Global
Currency Fund 12
Franklin Templeton Hard
Currency Fund 16
Franklin Templeton High Income
Currency Fund 20
Statement of Investments 24
Financial Statements 31
Report of Independent Accountants 43
To reduce the volume of mail shareholders receive and to reduce expenses, only
one copy of most fund reports, such as the fund's annual and semi-annual
reports, may be mailed to a household. Additional copies can be obtained,
without charge, by calling Fund Information at 1-800/DIAL BEN (1-800/342-5236).
December 15, 1995
Dear Shareholder:
Enclosed is the annual report for the Franklin Templeton Global Trust for the
period ended October 31, 1995.
The three Franklin Templeton International Currency Funds performed well during
the year under review when compared with short-term U.S. dollar-denominated
instruments. Total returns for the Global Currency, Hard Currency, and High
Income Currency Funds were 6.05%, 6.68%, and 8.90%, respectively, as shown in
the Performance Summaries on pages 14, 18, and 22. According to a tracking of
250 U.S. money market funds by Lipper Analytical Services, Inc., the average
U.S. dollar money market fund returned 5.32% over the same period.* Thanks to
appreciation of both the German mark and the German bond market, the Franklin
Templeton German Government Bond Fund provided an impressive total return of
18.28%, as shown in the Performance Summary on page 10.
Although the Global Currency and Hard Currency funds provided somewhat lower
returns than they have delivered in recent years, we are quite pleased with
their performance in light of the sharp rally in the dollar versus the Japanese
yen during the last six months of the fiscal year. Despite the fact that the yen
fell 17.3% against the dollar during that period, the Global Currency and Hard
Currency funds' returns for the same period were only slightly negative (-1.65%
and -3.58%, respectively), thereby currently preserving the bulk of the higher
returns achieved in the first half of the fiscal year. Of course, past
performance is not predictive of future results.
The funds' continued strong performance primarily reflects the dollar's ongoing
long-term downtrend against major foreign currencies. Another important factor
was the success of Templeton Investment Counsel, Inc., the funds' sub-adviser,
in placing proportionately larger portions of the funds' assets in the better
performing currencies of the period. During the last six months of the period,
for example, both the Global Currency and Hard Currency funds underweighted the
Japanese yen while overweighting the German mark, which substantially lessened
the impact of the dollar's sharp appreciation versus the yen during that time. A
more detailed analysis of each fund's performance is contained in the separate
sections of this report, as indicated in the Table of Contents on page 1.
*Includes reinvested dividends. It should be remembered that a currency fund
isn't the same as a money market fund because the value of its shares can change
every day, while a U.S. money market fund usually tries to keep a steady net
asset value of $1.00 per share.
By the end of the reporting period, the funds' total net assets reached a record
level of more than $227,000,000. Even more gratifying than this were the steady
inflows to the funds, which persisted throughout the dollar's rally during much
of the summer. This contrasted with the early history of the funds, when a
significant number of investors perceived them primarily as tools for playing
short-term swings in the dollar. Hopefully, it is confirmation that the funds
have "matured," and that investors and their advisors are beginning to view the
funds as sensible long-term investments -- a form of diversification which can
provide specific protection against weakness of the U.S. dollar.
In late 1994, a brief burst of optimism about the dollar surrounded the stunning
conservative Republican victories in Congress. The theory was that a
Republican-controlled Congress might stand a better chance of achieving a
balanced budget, adopting pro-business policies, and encouraging domestic
savings. Even under the proposed Republican budget plan, however, a balanced
budget would not be achieved until 2002 -- two presidential election cycles
away. Hope for the best, I suggest, but believe it when you see it. Likewise,
initiatives to promote personal savings are long overdue, but it remains to be
seen whether American consumers, when given the incentive to save more, will in
fact seize the opportunity. As they say, you can lead a horse to water...
In any case, we advise a healthy dose of skepticism and a corresponding measure
of portfolio diversification. Often I am asked, "What if the dollar goes up?" My
answer, in all seriousness, is, "Celebrate!" As Americans, most, if not all, of
our income and assets are in dollars, or are dollar-denominated, and a stronger
dollar makes us all richer in a global sense. True, foreign currency-denominated
assets would suffer in dollar terms, but, the pain would be akin to what we feel
when, in the course of the year, our house does not burn down and we see, with
hindsight, the premium paid for our fire insurance policy as a loss. Which is to
say, we're happy the insurance proved to be unnecessary. Unfortunately, the
"house" in which the dollar resides has "burned" more or less annually for the
past 25 years, so "insurance" probably isn't a bad idea, despite chances the
dollar might suddenly turn upward. Of course, the fund's net asset value is not
insured or guaranteed.
With the U.S. stock market at all-time highs and the bond market performing
strongly, many investors have been searching for asset classes that might offer
some meaningful diversification in the event of a market downturn. Foreign
currency money markets, given their low correlation with U.S. assets, may serve
as a distinct class under these circumstances. Many financial advisors have
indicated to me that they are now using Franklin Templeton International
Currency Funds in client portfolios for just this purpose. In my opinion, the
funds continue to seek to achieve their primary objective of providing U.S.
investors with a convenient and cost-effective means of protecting themselves
against depreciation of the U.S. dollar. And though the dollar's near-term
course remains uncertain, I believe the fundamental economic factors behind its
long slide are still firmly in place -- and so, too, the need for currency
diversification. It should be remembered, of course, that past performance is
not predictive of future results and that there are special risk considerations
associated with investing in foreign currency funds related to market, currency,
economic, political, and other factors, as discussed in the prospectus.
As always, thank you for investing with us.
Yours sincerely,
Donald P. Gould
President
Franklin Templeton Global Trust
ECONOMIC OVERVIEW
During the year under review, foreign bond markets followed the lead of their
U.S. counterparts and experienced generally positive results. In November 1994,
U.S. bond prices were at their lowest level of the fiscal year, with U.S. Gross
Domestic Product (GDP) growing at an annual rate of 5.1%. When economic reports
released during early 1995 hinted that growth was slowing, however, bonds began
a long rally culminating in June, as GDP growth slowed to an annual rate of only
1.3%. In July, the Federal Reserve Board, acknowledging this slower growth and
that inflation appeared to be moderating, cut the federal funds rate, from 6.00%
to 5.75%. Shortly afterward, however, government statistics indicated that
economic growth might be gaining momentum again in the third quarter. As a
result, bond prices fell during early July before staging a small rally in the
period from August through October. Although third quarter growth was initially
estimated at an unexpectedly strong annual rate of 4.2%1, monthly indicators of
inflation continued to show that price pressures were well contained.
Throughout the period, Japanese economic growth continued to be hurt by a strong
yen and weak banking system. Japan's slow-growing annualized GDP, which
increased only 0.6% in the second quarter of 1995, is forecast to grow less than
1% for the entire year. This caused its unemployment rate to reach 3.2%, which
would be considered low in many Western countries, but is very high by Japanese
standards. In an effort to stimulate growth, the government instituted several
spending plans and cut the discount rate to only 0.50%. Japanese long-term
interest rates, after declining to around 2.50% earlier this year, ended the
Funds' fiscal year at 2.80%.
1. U.S. Department of Commerce, report on GDP dated
October 27, 1995.
The German economy was also adversely affected by a strong currency which forced
corporations to accept lower profit margins on foreign trade. The high-priced
mark also helped keep inflation low by alleviating pressure on wholesale prices.
Although the Bundesbank eased monetary policy in August by dropping the discount
rate to 3.5%, short-term rates can still be considered high in view of the
approximately 2% increase in consumer prices this year. The Bundesbank now
expects that Germany's economy will grow approximately 2.5% in 1995.
By the end of the fiscal year under review, the U.S. economy was expanding at a
moderate rate while inflation remained subdued. This trend in the world's
largest economy could foreshadow the global trend for 1996. If this expansion
continues, upward pressure on prices in many industrialized countries may become
more likely. However, actual price increases remained muted compared with
previous business cycles and, therefore, in our opinion, the Federal Reserve may
continue to lower short-term interest rates in the U.S., which might result in
further declines for long-term rates as well.
FRANKLIN TEMPLETON GERMAN GOVERNMENT BOND FUND
Your Fund's Objective:
The Franklin Templeton German Government Bond Fund seeks long-term total return
through investment in a managed portfolio of German government bonds.
In seeking to maximize returns during the fiscal year under review, we
emphasized two investment strategies. The first was to allocate a larger portion
of the portfolio to issuers other than the German federal government, and the
second was to make a slight increase in the Fund's duration.1
Over the course of the year, we reduced our holdings of German federal
government bonds, from more than 40% of total net assets to approximately 19%,
and replaced them with highly-rated German mark-denominated bonds issued by
other government entities. Issuers included agencies of the German federal
government, governments outside Germany that issue AAA-rated Eurobonds
denominated in marks, and German state governments. On October 31, 1995, our
largest class of holdings was German state government bonds, whose allocation
increased to approximately 40%, from 20% of total net assets. Since all three
types of issues provided a yield premium over German federal government bonds,
met our standards for liquidity and security, and helped the Fund meet certain
diversification tests mandated by the Internal Revenue Code, we expect to hold
them for the long term.
In a further attempt to improve total return, we used incoming cash and proceeds
from sales of shorter-dated government bonds, to purchase bonds maturing between
2000 and 2002. From a total return perspective, we believed this area on the
yield curve may be most attractive. This lengthened the Fund's duration to 4.3
years from 4.1 years, compared with the 4.6-year duration of the unmanaged J.P.
Morgan German Government Bond Index.
1Duration is a measure of a portfolio's interest-rate risk. It is calculated by
converting all interest and principal payments due on the portfolio's bonds,
into a single, hypothetical zero-coupon bond having a maturity date with the
same risk exposure to interest-rate changes as the entire portfolio.
Looking forward, we believe that Germany's economy may remain relatively stable
for the near future and expect no changes in monetary policy while both economic
growth and inflation increase slightly. However, extensive tax cuts scheduled
for the beginning of 1996 should increase demand from the German consumer at
some point, and as growth accelerates, interest rates may begin to rise in
anticipation of the Bundesbank's tightening of monetary policy.
Shareholders should remember that investing in a non-diversified portfolio of
foreign government obligations involves special risks, such as increased
susceptibility to currency fluctuations, market volatility, and adverse
economic, social and political developments, as discussed in the fund's
prospectus. This fund may not be appropriate for all investors and should not be
considered a complete investment program.
GRAPHIC MATERIAL 1 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
Performance Summary
The Franklin Templeton German Government Bond Fund provided a total return of
+18.28% for the one-year period ended October 31, 1995. Total return measures
the change in value of an investment, assuming reinvestment of dividends and
capital gains, and does not include the initial sales charge.
The fund's share price, as measured by net asset value, increased from $13.26 on
October 31, 1994, to $14.31 on October 31, 1995. During this same period,
shareholders received distributions totaling 119.2 cents ($1.192) per share, of
which 69.2 cents ($0.692) represented regular dividend income and 50.0 cents
($0.50) represented a special year-end ordinary income dividend distribution.
Based on the maximum offering price of $14.75 on October 31, 1995, and an
annualization of the most recent monthly dividend of 6.1 cents ($0.061) per
share, the fund's distribution rate was 4.96%. Of course, past performance is
not predictive of future results, and distributions will vary depending on
income earned by the fund, currency gains and losses, and any profits realized
from the sale of portfolio securities.
GRAPHIC MATERIAL 2 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
The graph on page 10 compares the fund's performance since inception with the
performance of the unmanaged Salomon Brothers German World Government Bond
Index, which provides an indication of the performance of the German government
bond market. Of course, such unmanaged market indices and mutual funds have
inherent performance differences. Indices don't pay management fees to cover
salaries of security analysts or portfolio managers, or pay commissions or
market spreads to buy and sell bonds. Unlike the unmanaged indices, mutual funds
are never 100% invested because they must have cash on hand to redeem shares. In
addition, the fund's performance shown includes the maximum initial sales
charge, all fund expenses and account fees. If operating expenses such as the
Franklin Templeton German Government Bond Fund's had been applied to this index,
its performance would have been lower. Please remember that an index is simply a
measure of performance, and one cannot invest in an index directly. Past
performance is not predictive of future results.
Franklin Templeton
German Government Bond Fund
Periods Ended 10/31/95
Since
Inception
One-Year (12/31/92)
Cumulative Total Return1,3 18.28% 40.14%
Average Annual
Total Return2,3 14.73% 11.45%
Distribution Rate4 4.96%
30-Day Standardized Yield5 4.34%
1. Cumulative total return shows the change in value of an investment over the
specified periods and does not include the maximum 3.0% initial sales charge.
2. Average annual total return represents the average annual increase in value
of an investment over the specified periods and includes the maximum 3.0%
initial sales charge.
3. All total return calculations reflect the deduction of a proportional share
of fund expenses on an annual basis and assume that all dividends and capital
gains distributions were reinvested when paid. Investment return and principal
value will fluctuate with market conditions, the German mark and the economic
and political climate of Germany, so that your shares, when redeemed, may be
worth more or less than their initial cost. Past performance is not predictive
of future results.
4. Distribution rate is based on the maximum offering price of $14.75 per share
on October 31, 1995, and an annualization of the most recent monthly dividend of
6.1 cents ($0.061) per share.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio during the 30 days ended October 31, 1995. The fund's manager
has agreed in advance to waive a portion of its management fees, which reduces
operating expenses and increases distribution rate, yield and total return to
shareholders. Without this waiver, the fund's distribution rate and total return
would have been lower, and yield for the period would have been 3.83%. The fee
waiver may be discontinued at any time, upon notice to the fund's Board of
Trustees.
FRANKLIN TEMPLETON GLOBAL CURRENCY FUND
Your Fund's Objective:
The Franklin Templeton Global Currency Fund seeks to maximize total return,
through a combination of interest income and currency gains, by investing in
interest-earning money market instruments, at least 65% of which will be
denominated in three or more Major Currencies, including the U.S. dollar.
During the fiscal year under review, we varied the holdings of the Franklin
Templeton Global Currency Fund from its benchmark position (one-third weightings
each in the local currency money markets of Germany, Japan and the United
States) as we saw opportunities to increase the fund's return. The fund provided
a total return of +6.05% for the year, as shown in the Performance Summary on
page 14, compared to a total return of +1.22% produced by the benchmark
portfolio.
At the beginning of the fiscal year, the U.S. dollar enjoyed a rare period of
stability against the yen and mark. It resumed its long-term depreciation,
however, after the Mexican peso's devaluation on December 20, 1994, and early
signs of possibly weaker 1995 U.S. growth. Between late December and mid-April,
the dollar fell, from 1.58 marks to 1.35 marks (14%) and from 101 yen to 80 yen
(21%). Eventually, this plunge threatened a serious weakening of the Japanese
economy, as their products became priced out of the world market and slower
growth deflated the value of their assets. The U.S. Treasury and other central
banks responded by selling yen for dollars, causing the dollar to reverse course
and appreciate 31% to nearly 105 yen in September. Improvement against the mark
was not as pronounced, but the dollar reached a high of 1.50 marks (an 11%
increase) in September before drifting back to 1.41 marks on October 31, 1995.
The fund was overweighted in dollars at the beginning of this period, a position
we soon reversed by allocating a larger position than usual to the yen. In
March, as the yen approached its highest levels, we lowered our exposure and
increased U.S. dollar positions again. Although we missed the end of the yen's
rally, we felt that after such a strong move, it was time to take some profit
and look for other opportunities. On October 31, 1995, about 40% of the fund's
total net assets were denominated in marks, 20% in yen, 24% in U.S. dollars, and
16% in Australian dollars.
Looking forward to 1996, we expect fiscal reform to accompany modest growth and
low inflation in many key European countries. Japanese growth is likely to
remain sluggish, but its growing export of capital to other markets could
potentially help global interest rates decline further and continue to
strengthen other currencies versus the dollar. We expect to maintain significant
positions in the currencies of Germany, Japan and Australia. We also expect to
have positions in Swiss francs and New Zealand dollars to help us diversify the
portfolio while taking advantage of attractive potential opportunities.
There are, of course, special risk considerations associated with global
investing related to market, currency, economic, political, and other factors,
as discussed in the prospectus. Because the fund's assets are largely invested
in foreign currencies, there is potential for significant gain or loss from
currency exchange rate fluctuations. A non-diversified foreign fund may not be
appropriate for all investors and should not be considered a complete investment
program.
GRAPHIC MATERIAL 3 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
Although the fund's Statement of Investments on page 26 of this report indicates
that the fund held 74.4% of its portfolio investments in U.S. dollar-denominated
assets on October 31, 1995, its net exposure to the U.S. dollar on that date was
only 24.2%. The difference is explained by the fund's holdings of forward
currency exchange contracts (see Note 2 in the Notes to Financial Statements on
page 36) calling for the purchase of various foreign currencies in exchange for
U.S. dollars at various future dates. The combination of U.S. dollar instruments
with "long" forward currency exchange contracts in essence creates a position
economically equivalent to a money market instrument denominated in the foreign
currency itself. Such combined positions are sometimes necessary when the money
market for a particular foreign currency is small or relatively illiquid.
Performance Summary
The Franklin Templeton Global Currency Fund reported a total return of +6.05%
for the one-year period ended October 31, 1995. Total return measures the change
in value of an investment, assuming reinvestment of dividends and capital gains,
and does not include the initial sales charge.
The fund's share price, as measured by net asset value, decreased from $14.14 on
October 31, 1994, to $13.67 on October 31, 1995. During this same period,
shareholders received distributions totaling 127.2 cents ($1.272) per share, of
which 63.2 cents ($0.632) represented regular dividend income and 64.0 cents
($0.64) represented a special year-end ordinary income dividend distribution.
Based on the maximum offering price of $14.09 on October 31, 1995, and an
annualization of the most recent monthly dividend of 5.4 cents ($0.054) per
share, the fund's distribution rate was 4.60%. Of course, past performance is
not predictive of future results, and distributions will vary depending on
income earned by the fund, currency gains and losses, and any profits realized
from the sale of portfolio securities.
GRAPHIC MATERIAL 4 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
The graph on this page compares the fund's performance since inception with the
performance of the unmanaged Salomon Brothers World Money Market Index. This
index provides an indication of the performance of the U.S. dollar and
Eurocurrency short-term sectors. It is important to note that an index does not
contain cash (the fund generally carries a certain percentage of cash at any
given time), nor does it include sales charges or management fees. Also, the
Franklin Templeton Global Currency Fund's allocation of U.S. dollar instruments
is generally higher than the index's. Other things being equal, the fund may
therefore be expected to underperform the index during periods of dollar decline
and may outperform the index during periods of dollar strength.
The Salomon Brothers World Money Market Index is unmanaged and thus has inherent
performance differences compared with the fund. Indices don't pay management
fees to cover salaries of security analysts or portfolio managers, or pay
commissions or market spreads to buy and sell bonds. Unlike indices, mutual
funds are never 100% invested because they must have cash on hand to redeem
shares. In addition, the fund's performance includes the maximum initial sales
charge, all fund expenses and account fees. If operating expenses such as the
Franklin Templeton Global Currency Fund's had been applied to this index, its
performance would have been lower. Please remember that an index is simply a
measure of performance, and one cannot invest directly in an index. Past
performance is not predictive of future results.
Franklin Templeton Global Currency Fund
Periods ended October 31, 1995
Since
Inception
One-Year Five-Year (6/27/86)
Cumulative
Total Return1,3 6.05% 34.89% 113.50%
Average Annual
Total Return2,3 2.87% 5.52% 8.10%
Distribution Rate4 4.60%
30-Day Yield5 4.14%
1. Cumulative total return shows the change in value of an investment over the
specified periods and does not reflect the maximum 3.0% initial sales charge.
2. Average annual total return represents the average annual increase in the
value of an investment over the specified periods and includes the maximum 3.0%
initial sales charge.
3. All total return calculations reflect the deduction of a proportional share
of fund expenses on an annual basis and assume that all dividends and capital
gains distributions were reinvested when paid. Investment return and principal
value will fluctuate with market conditions, currencies, and the economic and
political climate of countries where investments are made, so that your shares,
when redeemed, may be worth more or less than their initial cost. Past expense
reductions by the fund's manager increased the fund's total return, and past
performance is not predictive of future results.
4. Distribution rate is based on the maximum offering price of $14.09 per share
on October 31, 1995, and an annualization of the most recent monthly dividend of
5.4 cents ($0.054) per share. 5. Yield, calculated as required by the SEC, is
based on the earnings of the fund's portfolio during the 30 days ended October
31, 1995.
FRANKLIN TEMPLETON HARD CURRENCY FUND
Your Fund's Objective:
The Franklin Templeton Hard Currency Fund seeks to protect shareholders against
depreciation of the U.S. dollar relative to other currencies by investing in
high-quality, interest-bearing money market instruments (and forward contracts),
denominated in those Major Currencies which historically have experienced low
rates of inflation, and which are currently pursuing economic policies conducive
to continued low rates of inflation and currency appreciation versus the U.S.
dollar over the long term.
During the past year, we actively allocated the Franklin Templeton Hard Currency
Fund's assets against a benchmark position consisting of one-third weightings
each in the local currency money markets of Germany, Japan and Switzerland. From
time to time we also invested in other money markets which we felt would enhance
the fund's performance. The fund provided a total return of +6.68% for the year,
as shown in the Performance Summary on page 18, compared to a total return of
+3.65% produced by the benchmark portfolio.
At the beginning of the period, the fund held a slightly above average position
in Swiss francs (39% of total net assets), as well as large positions in
Australian and New Zealand dollars (34% combined), with correspondingly smaller
positions in yen and mark investments. However, we soon increased our holdings
of the Japanese and German currencies in seeking to take advantage of their
sharp rallies, as they attained "safe haven" status following the Mexican peso
devaluation on December 20, 1994. In March, when the yen approached its highest
levels, we lowered its percentage of the portfolio and increased our positions
in marks and Swiss francs. Although we missed the end of the yen's rally, we
felt that after such a strong move, it was time to take some profit and look for
other opportunities. Finally, when this rally was brought to an end by the
coordinated intervention against the yen by the U.S., Japanese, and German
central banks during the second half of the fiscal year, we reintroduced a
significant position in New Zealand dollars. On October 31, 1995, about 35% of
the fund's total net assets were denominated in marks, 28% in Swiss francs, 22%
in yen, and 11% in New Zealand dollars.
Looking forward, we expect 1996 to feature modest economic growth, low
inflation, and continued fiscal reform in most European countries. Although
growth in Japan is likely to remain sluggish, its growing export of capital to
other markets could help global interest rates decline further. We expect to
maintain significant positions in our core currencies of Germany, Japan and
Switzerland, as well as smaller holdings in Australian or New Zealand dollars,
which will help us diversify the portfolio while taking advantage of attractive
opportunities.
GRAPHIC MATERIAL 5 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
There are, of course, special risk considerations associated with global
investing related to market, currency, economic, political, and other factors,
as discussed in the prospectus. Because the fund's assets are largely invested
in foreign currencies, there is potential for significant gain or loss from
currency exchange rate fluctuations. A non-diversified foreign fund may not be
appropriate for all investors and should not be considered a complete investment
program.
Although the fund's Statement of Investments on page 27 of this report indicates
that the fund held 66.4% of its portfolio investments in U.S. dollar-denominated
assets on October 31, 1995, its net exposure to the U.S. dollar on that date was
only 2.8%. The difference is explained by the fund's holdings of forward
currency exchange contracts (see Note 2 in the Notes to Financial Statements on
page 36) calling for the purchase of various foreign currencies in exchange for
U.S. dollars at various future dates. The combination of U.S. dollar instruments
with "long" forward currency exchange contracts in essence creates a position
economically equivalent to a money market instrument denominated in the foreign
currency itself. Such combined positions are sometimes necessary when the money
market for a particular foreign currency is small or relatively illiquid.
Performance Summary
The Franklin Templeton Hard Currency Fund reported a total return of +6.68% for
the one-year period ended October 31, 1995. Total return measures the change in
value of an investment, assuming reinvestment of dividends and capital gains,
and does not include the initial sales charge.
The fund's share price, as measured by net asset value, decreased from $13.95 on
October 31, 1994 to $13.09 on October 31, 1995. During this same period,
shareholders received distributions totaling 168.0 cents ($1.68) per share, of
which 59.0 cents ($0.59) represented regular dividend income and 109.0 cents
($1.09) represented a special year-end ordinary income dividend distribution.
Based on the maximum offering price of $13.49 on October 31, 1995, and an
annualization of the most recent monthly dividend of 5.3 cents ($0.053) per
share, the fund's distribution rate was 4.71%. Of course, past performance is
not indicative of future results, and distributions will vary depending on
income earned by the fund, currency gains and losses, and any profits realized
from the sale of portfolio securities.
The graph on this page compares the fund's performance since inception with the
performance of the unmanaged Salomon Brothers World Money Market Index. This
index provides an indication of the performance of the U.S. dollar and
Eurocurrency short-term sectors. It is important to note that an index does not
contain cash (the fund generally carries a certain percentage of cash at any
given time), nor does it include sales charges or management fees. Also, in
contrast to the index, the Franklin Templeton Hard Currency Fund does not
generally maintain a material exposure to the U.S. dollar. Other things being
equal, the fund may therefore be expected to outperform the index during periods
of dollar decline and may underperform the index during periods of dollar
strength.
GRAPHIC MATERIAL 6 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
The Salomon Brothers World Money Market Index is unmanaged and thus has inherent
performance differences compared with the fund. Indices don't pay management
fees to cover salaries of security analysts or portfolio managers, or pay
commissions or market spreads to buy and sell bonds. Unlike indices, mutual
funds are never 100% invested because they must have cash on hand to redeem
shares. In addition, the fund's performance includes the maximum initial sales
charge, all fund expenses and account fees. If operating expenses such as the
Franklin Templeton Hard Currency Fund's had been applied to this index, its
performance would have been lower. Please remember that an index is simply a
measure of performance, and one cannot invest directly in an index. Past
performance is not predictive of future results.
Franklin Templeton Hard Currency Fund
Periods ended October 31, 1995
Since
Inception
One-Year Five-Year (11/17/89)
Cumulative
Total Return1,3 6.68% 44.86% 86.17%
Average Annual
Total Return2,3 3.48% 7.04% 10.43%
Distribution Rate4 4.71%
30-Day Yield5 4.43%
1. Cumulative total return shows the change in value of an investment over the
specified periods and does not reflect the maximum 3.0% initial sales charge.
2. Average annual total return represents the average annual increase in the
value of an investment over the specified periods and includes the maximum 3.0%
initial sales charge.
3. All total return calculations reflect the deduction of a proportional share
of fund expenses on an annual basis and assume that all dividends and capital
gains distributions were reinvested when paid. Investment return and principal
value will fluctuate with market conditions, currencies and the economic and
political climate of countries where investments are made, so that your shares,
when redeemed, may be worth more or less than their initial cost. Past expense
reductions by the fund's manager increased the fund's total return, and past
performance is not predictive of future results.
4. Distribution rate is based on the maximum offering price of $13.49 per share
on October 31, 1995, and an annualization of the most recent monthly dividend of
5.3 cents ($0.053) per share.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio during the 30 days ended October 31, 1995.
FRANKLIN TEMPLETON HIGH INCOME CURRENCY FUND
Your Fund's Objective:
The Franklin Templeton High Income Currency Fund seeks to achieve high current
income at a level significantly above that available on U.S. dollar money market
funds by investing in interest-bearing money market instruments denominated in
Major and Non-Major Currencies. Subject to this investment objective, a
secondary consideration of the fund is preservation of capital.
Under normal conditions, the Franklin Templeton High Income Currency Fund keeps
at least 65% of its assets invested in instruments denominated in three or more
of the ten highest-yielding Major Currencies (as defined in the prospectus) and
in the U.S. dollar. On October 31, 1995, those were the currencies of Canada,
the United Kingdom, the Netherlands, France, Italy, Spain, Denmark, Sweden,
Australia, and New Zealand. During the fiscal year, the fund, as shown in the
Performance Summary on page 22, provided a total return of +8.90%, while the
benchmark portfolio, consisting of investments in the ten currencies listed
above, produced a total return of +3.11%.
Over the past twelve months, we maintained the fund's exposure to the currencies
of Australia, New Zealand, Germany, the United Kingdom, and the Netherlands,
while adjusting its holdings in other countries. Early in the year, for example,
we decreased our investments in Spanish pesetas, Italian lira and Swedish krona
because of high rates of inflation and unemployment in those countries. By
year's end, however, we had re- invested in Spain and Italy, and added positions
in Denmark, as the economic and political environments in those countries began
to improve. We also added attractively valued assets in developing countries
such as Thailand and the Czech Republic.
On October 31, 1995, almost half the fund's holdings were denominated in a
combination of Australian dollars, Dutch guilder and New Zealand dollars.
Approximately one-quarter of the fund was represented by investments in Danish
kroner, French francs and British pounds. The remainder was split among seven
other countries, as shown in the chart on the following page.
Looking forward, we will continue to seek potential investment opportunities in
economies with relatively stable currencies, attractive yields on short-term
debt instruments, and rapid Gross Domestic Product growth. There are, of course,
special risk considerations associated with global investing related to market,
currency, economic, political, and other factors, as discussed in the
prospectus. Developing markets involve heightened risks related to the same
factors, in addition to risks associated with the relatively small size and
lesser liquidity of these markets. Because the fund's assets are largely
invested in foreign currencies, there is potential for significant gain or loss
from currency exchange rate fluctuations. A non-diversified global fund may not
be appropriate for all investors and should not be considered a complete
investment program.
GRAPHIC MATERIAL 7 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
Although the fund's Statement of Investments on page 29 of this report indicates
that the fund held 41.5% of its portfolio investments in U.S. dollar-denominated
assets on October 31, 1995, its net exposure to the U.S. dollar on that date was
only 3.7%. The difference is explained by the fund's holdings of forward
currency exchange contracts (see Note 2 in the Notes to Financial Statements on
page 36) calling for the purchase of various foreign currencies in exchange for
U.S. dollars at various future dates. The combination of U.S. dollar instruments
with "long" forward currency exchange contracts in essence creates a position
economically equivalent to a money market instrument denominated in the foreign
currency itself. Such combined positions are sometimes necessary when the money
market for a particular foreign currency is small or relatively illiquid.
Performance Summary
The Franklin Templeton High Income Currency Fund reported a total return of
+8.90% for the one-year period ended October 31, 1995. Total return measures the
change in value of an investment, assuming reinvestment of dividends and capital
gains, and does not include the initial sales charge.
The fund's share price, as measured by net asset value, decreased from $11.59 on
October 31, 1994, to $11.56 on October 31, 1995. During this same period,
shareholders received distributions totaling 98.9 cents ($0.989) per share, of
which 64.9 cents ($0.649) represented regular dividend income and 34.0 cents
($0.34) represented a special year-end ordinary income dividend distribution.
Based on the maximum offering price of $11.92 on October 31, 1995, and an
annualization of the most recent monthly dividend of 5.2 cents ($0.052) per
share, the fund's distribution rate was 5.23%. Of course, past performance is
not indicative of future results, and distributions will vary depending on
income earned by the fund, currency gains and losses, and any profits realized
from the sale of portfolio securities.
GRAPHIC MATERIAL 8 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
The graph above compares the fund's performance since inception with the
performance of the unmanaged Salomon Brothers World Money Market Index. This
index provides an indication of the performance of the U.S. dollar and
Eurocurrency short-term sectors. It is important to note that an index does not
contain cash (the fund generally carries a certain percentage of cash at any
given time), nor does it include sales charges or management fees. Also, many of
the higher-yielding currencies in which the fund invests are not included in the
index. Thus, performance of the fund compared with the index will depend, in
part, on how such higher-yielding currencies perform relative to those in the
index.
The Salomon Brothers World Money Market Index is unmanaged and thus has inherent
performance differences compared with the fund. Indices don't pay management
fees to cover salaries of security analysts or portfolio managers, or pay
commissions or market spreads to buy and sell bonds. Unlike indices, mutual
funds are never 100% invested because they must have cash on hand to redeem
shares. In addition, the fund's performance includes the maximum initial sales
charge, all fund expenses and account fees. If operating expenses such as the
Franklin Templeton High Income Currency Fund's had been applied to this index,
its performance would have been lower. Please remember that an index is simply a
measure of performance, and one cannot invest directly in an index. Past
performance is not predictive of future results.
Franklin Templeton High Income Currency Fund
Periods ended October 31, 1995
Since
Inception
One-Year Five-Year (11/17/89)
Cumulative
Total Return1,3 8.90% 27.87% 57.12%
Average Annual
Total Return2,3 5.63% 4.40% 7.33%
Distribution Rate4 5.23%
30-Day Yield5 4.93%
1. Cumulative total return shows the change in value of an investment over the
specified periods and does not reflect the maximum 3.0% initial sales charge.
2. Average annual total return represents the average annual increase in the
value of an investment over the specified periods and includes the maximum 3.0%
initial sales charge.
3. All total return calculations reflect the deduction of a proportional share
of fund expenses on an annual basis and assume that all dividends and capital
gains distributions were reinvested when paid. Investment return and principal
value will fluctuate with market conditions, currencies and the economic and
political climate of countries where investments are made, so that your shares,
when redeemed, may be worth more or less than their initial cost. Past
performance is not predictive of future results.
4. Distribution rate is based on the maximum offering price of $11.92 per share
on October 31, 1995, and an annualization of the most recent monthly dividend of
5.2 cents ($0.052) per share.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio during the 30 days ended October 31, 1995. The fund's manager
has agreed in advance to waive a portion of its management fees, which reduces
operating expenses and increases distribution rate, yield and total return to
shareholders. Without this waiver, the fund's distribution rate and total return
would have been lower, and yield for the period would have been 4.85%. The fee
waiver may be discontinued at any time, upon notice to the fund's Board of
Trustees.
<TABLE>
<CAPTION>
FRANKLIN TEMPLETON GLOBAL TRUST
Statement of Investments in Securities and Net Assets, October 31, 1995
Face Value
Country* Amount Franklin Templeton German Government Bond Fund (Note 1)
Long Term Investments 88.0%
Eurobonds 20.9%
<S> <C> <C> <C>
DD 900,000 Europe Economic Community, 6.50%, 3/10/00 .............................. $ 663,670
DD 850,000 Government of Australia, 7.25%, 5/03/07 ................................ 620,758
DD 1,225,000 Government of Denmark, 6.125%, 4/15/98 ................................. 897,843
DD 925,000 Inter-American Development Bank, 6.75%, 4/29/03 ........................ 671,586
International Bank of Reconstruction/Development:
DD 600,000 6.125%, 9/27/02 ...................................................... 425,388
DD 750,000 7.125%, 4/12/05 ...................................................... 550,206
DD 800,000 Japan Finance Corp. Muni Enterprises, 7.75%, 10/28/04 .................. 606,987
DD 800,000 United Kingdom, 7.125%, 10/28/97 ....................................... 597,150
-----------
Eurobonds (Cost $4,476,543)....................................... 5,033,588
-----------
German Bonds 67.1%
DD 800,000 Baden Wurt L Finance NV, 6.50%, 9/15/08 ................................ 544,440
DD 750,000 Baden Wuerttembergische Bank AG, 7.50%, 10/22/04 ....................... 561,321
DD 1,250,000 Deutsche Bundesbahn, 9.00%, 12/01/00 ................................... 1,011,230
DD 1,000,000 Deutsche Bundespost, 7.50%, 12/02/02 ................................... 755,251
Freie Hansestadt Bremen:
DD 800,000 6.25%, 2/13/97 ....................................................... 582,537
DD 500,000 8.50%, 4/17/98 ....................................................... 384,164
DD 1,500,000 Freie Und Hansestadt Hamburg, 6.00%, 7/28/03 ........................... 1,024,823
Freistaat Bayern:
DD 100,000 6.50%, 10/01/96 ...................................................... 72,533
DD 900,000 6.00%, 3/20/97 ....................................................... 655,354
DD 1,300,000 Freistaat Sachsen Saxony, 6.125%, 12/10/03 ............................. 897,189
DD 1,850,000 Federal Republic of Germany, Bundes, 8.25%, 9/20/01 .................... 1,465,194
DD 1,840,000 Federal Republic of Germany, Unity, 8.50%, 2/20/21 ..................... 1,468,521
DD 700,000 Kreditanst Wiederaufbau, 6.00%, 9/02/96 ................................ 504,744
DD 900,000 Land Berlin, 6.75%, 8/25/99 ............................................ 666,548
DD 800,000 Land Hessen, 6.00%, 6/18/97 ............................................ 582,821
Land Niedersachsen:
DD 1,000,000 6.25%, 9/15/03 ....................................................... 698,461
DD 150,000 7.50%, 1/20/05 ....................................................... 112,115
Land Sachsen Anhalt:
DD 800,000 7.50%, 10/28/04 ...................................................... 593,056
DD 550,000 7.25%, 4/20/05 ....................................................... 403,426
DD 890,000 Landesbank Hessen Thueringen Girozentrale, 6.25%, 4/01/98 .............. 653,133
DD 890,000 Landwirt Schaftliche Rentenbank, 7.50%, 10/15/97 ....................... 665,152
Nordrhein - Westfalen:
DD 750,000 6.125%, 4/17/97 ...................................................... 546,395
DD 370,000 6.25%, 3/18/98 ....................................................... 271,659
German Bonds (cont.)
DD 500,000 Rheinland-Pfalz, 6.50%, 3/19/03 ........................................ $ 355,023
DD 290,000 Treuhandanstalt, 7.375%, 12/02/02 ...................................... 219,517
DD 650,000 KFW International Finance, 7.75%, 10/06/04 ............................. 492,484
-----------
German Bonds (Cost $15,049,196)................................... 16,187,091
-----------
Total Long Term Investments (Cost $19,525,739).................... 21,220,679
-----------
Short Term Investments 4.4%
US 27,000 Federal Home Loan Mortgage Corp., 5.175%, 11/27/95 ..................... 26,890
US 90,000 Federal National Mortgage Assoc., 5.66%, 11/03/95 ...................... 89,972
US 957,000 U.S. Treasury Bills, 5.175% - 5.31%, with maturities to 11/24/95 ....... 955,553
-----------
Total Short Term Investments (Cost $1,072,246).................... 1,072,415
-----------
Total Investments (Cost $20,597,985) 92.4% .................. 22,293,094
Other Assets and Liabilities, Net 7.6% ...................... 1,820,197
-----------
Net Assets 100.0% ........................................... $24,113,291
===========
At October 31, 1995, the net unrealized appreciation based on the cost of
investments for income tax purposes of $20,597,985 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost .......................... $ 1,710,472
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value .......................... (15,363)
-----------
Net unrealized appreciation .......................................... $ 1,695,109
===========
*Securities traded in currency of country indicated. See page 30 for country legend.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN TEMPLETON GLOBAL TRUST
Statement of Investments in Securities and Net Assets, October 31, 1995
Face Value
Country* Amount Franklin Templeton Global Currency Fund (Note 1)
Long Term Investments 4.9%..........................................
Foreign Government Securities - Floating Rate Notes
<S> <C> <C> <C>
DD 4,150,000 Government of Spain, floating rate note, 4.563%, 6/29/02
Total Long Term Investments (Cost $2,728,125) ................. $ 2,939,319
-----------
aShort Term Investments 86.2%
Corporate Bonds 2.6%
DD 2,200,000 bCredit Foncier, floating rate note, semi-annual calls, 4.563%, 7/19/96
Total Corporate Bonds (Cost $1,217,748)........................ 1,564,604
-----------
Foreign Government Securities - Floating Rate Notes 2.4%
DD 2,000,000 bGovernment of Belgium, floating rate note, semi-annual calls, 4.063%,
3/15/00
Total Foreign Government Securities - Floating Rate Notes
(Cost $1,282,288) ............................................ 1,418,103
-----------
Government Securities 19.0%
DD 1,750,000 bEuropean Investment Bank, floating rate note, annual calls, 3.887%,
3/25/98 ............................................................ 1,238,850
DD 3,900,000 Federal Republic of Germany, Bundesobl Series 94, 8.875%, 1/22/96 ... 2,799,673
US 7,360,000 U.S. Treasury Bills, 5.14% - 5.18%, with maturities to 11/24/95 ..... 7,344,324
-----------
Total Government Securities (Cost $11,276,932) ................ 11,382,847
-----------
U.S. Government Agencies 62.2%
US 5,350,000 Federal Farm Credit Bank, 5.57% - 5.64%, with maturities to 12/11/95 5,331,430
US 14,910,000 Federal Home Loan Bank, 5.57% - 5.62%, with maturities to 12/27/95 .. 14,874,114
US 3,735,000 Federal Home Loan Mortgage Corp., 5.61% - 5.63%, with maturities to
11/20/95 ........................................................... 3,725,810
US 13,410,000 Federal National Mortgage Assn., 5.57% - 5.62%, with maturities to
12/08/95 ........................................................... 13,353,534
-----------
Total U.S. Government Agencies (Cost $37,279,833) ............. 37,284,888
-----------
Total Short Term Investments (Cost $51,056,801) ............... 51,650,442
-----------
Total Investments (Cost $53,784,926) 91.1% ............... 54,589,761
Other Assets and Liabilities, Net 8.9% ................... 5,352,071
-----------
Net Assets 100.0% ........................................ $59,941,832
===========
At October 31, 1995, the net unrealized appreciation
based on the cost of investments for income tax
purposes of $53,784,926 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ........................ $ 804,835
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value ........................ --
-----------
Net unrealized appreciation ........................................ $ 804,835
===========
*Securities traded in currency of country indicated. See page 30 for country legend.
aCertain short-term securities are traded on a discount basis; the rates shown
are the discount rates at the time of purchase by the Fund. Other securities
bear interest at the rates shown, payable at fixed dates or upon maturity.
bFloating rate notes with an embedded put and/or call feature.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN TEMPLETON GLOBAL TRUST
Statement of Investments in Securities and Net Assets, October 31, 1995
Face Value
Country* Amount Franklin Templeton Hard Currency Fund (Note 1)
Long Term Investments 7.8%
Foreign Government Securities - Floating Rate Notes 0.9%
<S> <C> <C> <C>
JP 135,000,000 Government of Italy, Tranch 3, floating rate note, 0.938%, 7/26/99
Total Foreign Government Securities - Floating Rate Notes
(Cost $1,392,599) ........................................... $ 1,319,698
-----------
Corporate Bonds - Floating Rate Notes 3.1%
SW 3,500,000 General Electric Credit Corp., floating rate note, 2.843%, 8/05/96 . 3,079,717
JP 100,000,000 Inter-American Development Bank, floating rate note, 1.125%, 6/19/98. 976,820
-----------
Total Corporate Bonds - Floating Rate Notes
(Cost $3,616,813) ........................................... 4,056,537
-----------
U.S. Government Agencies - Floating Rate Notes 3.8%
US 2,500,000 Federal Farm Credit Bank, floating rate note, 5.635%, 2/26/96 ...... 2,497,250
US 2,500,000 Federal Home Loan Mortgage Corp., floating rate note, 5.738%, 3/25/96 2,498,500
-----------
Total U.S. Government Agencies - Floating Rate Notes
(Cost $4,996,886) ........................................... 4,995,750
-----------
Total Long Term Investments (Cost $10,006,298) ............... 10,371,985
-----------
aShort Term Investments 93.5%
Bonds 22.2%
DD 2,750,000 bCredit Foncier, floating rate note, semi-annual calls, 4.563%, 7/19/96 1,955,755
DD 3,680,000 Deutsche Bundespost, 6.625%, 12/01/95 .............................. 2,620,295
JP 181,000,000 European Investment Bank, 6.125%, 3/15/96 .......................... 1,857,885
DD 1,650,000 bEuropean Investment Bank, floating rate note, semi-annual calls,
4.288%, 10/23/98 .................................................. 1,162,488
DD 7,800,000 Federal Republic of Germany, 8.125%, 1/22/96 ....................... 5,590,476
DD 7,350,000 Federal Republic of Germany, Bundesobl Series 96, 8.50%, 4/22/96 ... 5,328,548
DD 7,225,000 Federal Republic of Germany, Schatz, 8.75%, 12/20/95 ............... 5,167,060
DD 7,800,000 Federal Republic of Germany, Unity, 8.50%, 3/20/96 ................. 5,633,164
-----------
Total Bonds (Cost $30,302,778) ............................... 29,315,671
-----------
Foreign Government Securities - Floating Rate Notes 2.5%
DD 4,600,000 bGovernment of Belgium, floating rate note, semi-annual calls, 4.063%,
3/15/00
Total Foreign Goverment Securities - Floating Rate Notes
(Cost $3,040,367) ........................................... 3,261,637
-----------
Government Securities 15.3%
JP 103,000,000 Government of Finland, 6.75%, 3/25/96 .............................. 1,035,087
NZ 10,910,000 New Zealand Treasury Bill, 8.95%, 11/22/95 ......................... 7,166,382
US 11,990,000 U.S. Treasury Bills, 5.19% - 5.33%, with maturities to 11/24/95 .... 11,969,414
-----------
Total Government Securities (Cost $20,377,659) ............... 20,170,883
-----------
U.S. Government Agencies 53.5%
US 3,000,000 Federal Farm Credit Bank, 5.57%, with maturities to 12/11/95 ....... $ 2,981,430
US 24,355,000 Federal Home Loan Bank, 5.57% - 5.64%, with maturities to 12/27/95 . 24,327,106
US 27,764,000 Federal Home Loan Mortgage Corp., 5.57% - 5.63%, with maturities
to 12/12/95 ....................................................... 27,681,094
US 15,735,000 Federal National Mortgage Assn., 5.59% - 5.65%, with maturities to
12/04/95 .......................................................... 15,691,954
-----------
Total U.S. Government Agencies (Cost $70,672,654) ............ 70,681,584
-----------
Total Short Term Investments (Cost $124,393,458) ............. 123,429,775
-----------
Total Investments (Cost $134,399,756) 101.3% ............ 133,801,760
Other Assets and Liabilities, Net (1.3)% ................ (1,712,753)
-----------
Net Assets 100.0% ....................................... $132,089,007
===========
At October 31, 1995, the net unrealized depreciation based on the cost of
investments for income tax purposes of $134,399,756 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ...................... $ 973,353
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value ...................... (1,571,349)
-----------
Net unrealized depreciation ...................................... $ (597,996)
===========
*Securities traded in currency of country indicated. See page 30 for country legend.
aCertain short-term securities are traded on a discount basis; the dates shown
are the discount rates at the time of purchase by the Fund. Other securities
bear interest at the rates shown, payable at fixed dates or upon maturity.
bFloating rate notes with an embedded put and/or call feature.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN TEMPLETON GLOBAL TRUST
Statement of Investments in Securities and Net Assets, October 31, 1995
Face Value
Country* Amount Franklin Templeton High Income Currency Fund (Note 1)
Long Term Investment 6.7%
Foreign Government Security - Floating Rate Note
<S> <C> <C> <C>
UK 460,000 United Kingdom, floating rate note, 6.528%, 3/11/99
Total Long Term Investments (Cost $716,135) .................... $ 729,488
-----------
aShort Term Investments 90.1%
Corporate Bonds 8.0%
US 100,000 bBanque Francaise de Comerico, floating rate note, semi-annual calls,
6.403%, 11/29/96 .................................................... 100,045
TH 10,000,000 Thailand Military Bank, 9.875%, 2/02/96 .............................. 397,377
CS 10,000,000 Unilever CR, 4.11%, 11/28/95 ......................................... 379,197
-----------
Total Corporate Bonds (Cost $873,907) .......................... 876,619
-----------
U.S. Government Agency 15.5%
US 1,700,000 Federal Home Loan Bank, 5.57% - 5.62%, with maturities to 12/26/95
(Cost $1,690,680) ................................................... 1,690,927
-----------
Government Securities 66.6%
DK 4,000,000 Denmark Treasury Bill, 6.65%, 1/02/96 ................................ 725,449
DD 635,000 Federal Republic of Germany, Bundesobl Series 94, 8.875%, 1/22/96 .... 455,844
IT 820,000,000 Government of Italy, 7.73%, 12/29/95 ................................. 507,890
NL 3,000,000 Government of Netherland, 6.00%, 5/15/96 ............................. 1,918,457
ES 63,000,000 Government of Spain, 9.20%, 1/26/96 .................................. 504,900
SE 3,000,000 Sweden Treasury Bill, 8.77%, 10/16/96 ................................ 417,057
US 2,735,000 U.S. Treasury Bills, 5.18% - 5.33%, with maturities to 11/24/95 ...... 2,730,624
-----------
Total Government Securities (Cost $7,262,604) .................. 7,260,221
-----------
Total Short Term Investments (Cost $9,827,191) ................. 9,827,767
-----------
Total Investments (Cost $10,543,326) 96.8% ................ 10,557,255
Other Assets and Liabilities, Net 3.2% .................... 344,931
-----------
Net Assets 100.0% ......................................... $10,902,186
===========
At October 31, 1995, the net unrealized appreciation based on the cost of
investments for income tax purposes of $10,543,326 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ........................ $ 31,777
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value ........................ (17,848)
-----------
Net unrealized appreciation ........................................ $ 13,929
===========
*Securities traded in currency of country indicated. See page 30 for country legend.
aCertain short-term securities are traded on a discount basis; the rates shown
are the discount rates at the time of purchase by the Fund. Other securities
bear interest at the rates shown, payable at fixed dates or upon maturity.
bFloating rate notes with an embedded put and/or call feature.
The accompanying notes are an integral part of these financial statements.
</TABLE>
FRANKLIN TEMPLETON GLOBAL TRUST
Statement of Investments in Securities and Net Assets, October 31, 1995 (cont.)
COUNTRY LEGEND:
CS - Czech Republic
DD - Germany
DK - Denmark
ES - Spain
IT - Italy
JP - Japan
NL - Netherlands
NZ - New Zealand
SE - Sweden
SW - Switzerland
TH - Thailand
UK - United Kingdom
US - United States
The accompanying notes are an integral part of these financial statements.
<TABLE>
<CAPTION>
FRANKLIN TEMPLETON GLOBAL TRUST
Financial Statements
Statements of Assets and Liabilities
October 31, 1995
Franklin Templeton Franklin Franklin Franklin
German Templeton Templeton Templeton
Government Global Hard High Income
Bond Fund Currency Fund Currency Fund Currency Fund
---------- -------- --------- --------
<S> <C> <C> <C> <C>
Assets:
Investment in Securities:
At identified cost ...................................... $20,597,985 $53,784,926 $134,399,756 $10,543,326
========== ======== ========= ========
At value ................................................ $22,293,094 $54,589,761 $133,801,760 $10,557,255
Foreign currencies (cost $785,704, and $19,561, respectively) 784,203 -- 19,438 --
Cash ..................................................... 4,372 5,240,748 -- 4,122
Receivables:
Investment securities sold .............................. 444,570 -- -- 699,505
Interest ................................................ 614,313 268,742 1,301,243 107,312
Capital shares sold ..................................... 90,623 25,542 1,595,012 280
Net unrealized gain on forward foreign currency contract (Note 2) 1,219 142,122 -- 36,962
Unamortized organization cost (Note 3) ................... 16,622 -- -- --
Receivable from affiliates ............................... -- -- -- 32
---------- -------- --------- --------
Total assets ........................................ 24,249,016 60,266,915 136,717,453 11,405,468
---------- -------- --------- --------
Liabilities:
Payables:
Investment securities purchased.......................... -- -- -- 418,349
Capital shares repurchased .............................. 31,791 180,465 214,468 16,957
Management fees.......................................... 23,907 32,740 69,161 5,957
Distribution fees........................................ 23,142 52,576 202,713 11,276
Shareholder servicing costs ............................. 256 3,446 7,020 1,725
Accrued expenses and other liabilities ................... 56,629 55,856 50,135 49,018
Net unrealized loss on forward foreign currency contract (Note 2) -- -- 192,613 --
U.S. cash overdraft....................................... -- -- 3,892,336 --
---------- -------- --------- --------
Total liabilities.................................... 135,725 325,083 4,628,446 503,282
---------- -------- --------- --------
Net assets, at value....................................... $24,113,291 $59,941,832 $132,089,007 $10,902,186
========== ======== ========= ========
Net assets consists of:
Undistributed net investment income....................... $ 660,762 $ 1,463,213 $ 1,248,928 $ 465,794
Unrealized appreciation (depreciation) on investments and translation
of assets and liabilities denominated in foreign currencies 1,702,069 943,490 (811,034) 51,492
Undistributed net realized gain (loss) from investments and foreign
currency transactions..................................... 42,080 (208,434) (884,056) 12,939
Capital shares............................................ 16,850 43,841 100,897 9,434
Additional paid-in capital................................ 21,691,530 57,699,722 132,434,272 10,362,527
---------- -------- --------- --------
Net assets, at value....................................... $24,113,291 $59,941,832 $132,089,007 $10,902,186
========== ======== ========= ========
Shares outstanding......................................... 1,685,047 4,384,058 10,089,744 943,387
========== ======== ========= ========
Net asset value per share.................................. $14.31 $13.67 $13.09 $11.56
========== ======== ========= ========
Maximum offering price..................................... $14.75 $14.09 $13.49 $11.92
========== ======== ========= ========
Representative computation (Franklin Templeton German Government
Bond Fund) of net asset value and offering price per share:
Net asset value and redemption price per share
($24,113,291/1,685,047)................................... $14.31
==========
Maximum offering price (100/97 of $14.31).................. $14.75
==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN TEMPLETONGLOBALTRUST Financial Statements (cont.)
Statements of Operations
for the year ended October 31, 1995
Franklin Templeton
German Franklin Franklin Franklin Templeton
Government Templeton Global Templeton Hard High Income
Bond Fund Currency Fund Currency Fund Currency Fund
---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Investment income: (net of $0, $31,930, $0, and
$0 foreign taxes withheld)
Interest............................................. $1,143,626 $ 3,668,754 $ 5,707,034 $ 868,870
---------- ---------- --------- ----------
Expenses:
Management fees (Note 7).............................. 97,759 379,524 634,188 82,819
Distribution fees (Note 7)............................ 32,842 132,583 349,101 34,722
Shareholder servicing costs........................... 10,320 22,500 46,000 9,250
Custody fees.......................................... 1,000 1,000 2,000 1,000
Audit fees............................................ 12,750 8,800 8,500 14,500
Registration fees and insurance....................... 18,850 -- 31,636 1,500
Reports to shareholders............................... 29,000 16,100 34,500 25,800
Amortization of organization cost (Note 3)............ 8,324 -- -- --
Professional fees..................................... 3,500 4,000 3,000 2,500
Trustees' fees and expenses........................... 13,500 11,500 15,500 11,500
Other................................................. 1,175 831 4,434 914
Payments from Manager (Note 7)........................ (6,337) -- -- (25,007)
---------- ---------- --------- ----------
Total expenses................................... 222,683 576,838 1,128,859 159,498
---------- ---------- --------- ----------
Net investment income............................ 920,943 3,091,916 4,578,175 709,372
---------- ---------- --------- ----------
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments.......................................... 650,137 3,146,757 471,347 485,601
Foreign currency transactions........................ 63,193 (1,063,701) 741,133 104,511
---------- ---------- --------- ----------
713,330 2,083,056 1,212,480 590,112
---------- ---------- --------- ----------
Net unrealized appreciation (depreciation) on:
Investments .......................................... 1,066,681 (2,301,211) (1,112,514) (337,132)
Foreign currency translation of other
assets and liabilities............................... (7,167) 290,366 (620,301) 16,760
---------- ---------- --------- ----------
1,059,514 (2,010,845) (1,732,815) (320,372)
---------- ---------- --------- ----------
Net realized and unrealized gain (loss)................ 1,772,844 72,211 (520,335) 269,740
---------- ---------- --------- ----------
Net increase in net assets resulting from operations... $2,693,787 $ 3,164,127 $ 4,057,840 $ 979,112
========== ========== ========= ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN TEMPLETON GLOBAL TRUST
Financial Statements (cont.)
Statements of Changes in Net Assets
Franklin Templeton Franklin Templeton
German Government Bond Fund Global Currency Fund
----------------------------------- -----------------------------------
Year ended Six months ended Year ended Six months ended
October 31, 1995 October 31, 1994 October 31, 1995 October 31, 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income................................ $ 920,943 $ 416,205 $ 3,091,916 $ 946,987
Net realized gain from investments and foreign
currency transactions............................... 713,330 367,990 2,083,056 168,703
Net unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies..................... 1,059,514 570,451 (2,010,845) 1,038,648
---------- ---------- ---------- ----------
Net increase in net assets resulting from
operations............................................ 2,693,787 1,354,646 3,164,127 2,154,338
Distributions to shareholders from undistributed net
investment income..................................... (1,355,870) (359,756) (5,196,532) (1,051,089)
Increase (decrease) in net assets from capital share
transactions (Note 4)................................. 9,539,172 (1,099,738) 5,876,339 3,455,295
---------- ---------- ---------- ----------
Net increase (decrease) in net assets............ 10,877,089 (104,848) 3,843,934 4,558,544
Net assets:
Beginning of year..................................... 13,236,202 13,341,050 56,097,898 51,539,354
---------- ---------- ---------- ----------
End of year........................................... $24,113,291 $13,236,202 $59,941,832 $56,097,898
========== ========== ========== ==========
Accumulated undistributed net investment income (loss) included in net assets:
Beginning of year.................................... $ 56,449 -- $ 1,263,410 --
========== ========== ========== ==========
End of year.......................................... $ 660,762 $ 56,449 $ 1,463,213 $ 1,263,410
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN TEMPLETON GLOBAL TRUST
Financial Statements (cont.)
Statements of Changes in Net Assets (cont.)
Franklin Templeton Franklin Templeton
Hard Currency Fund High Income Currency Fund
----------------------------------- -----------------------------------
Year ended Six months ended Year ended Six months ended
October 31, 1995 October 31, 1994 October 31, 1995 October 31, 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............................... $ 4,578,175 $ 1,047,942 $ 709,372 $ 474,320
Net realized gain from investments and foreign
currency transactions................................ 1,212,480 4,083,196 590,112 308,224
Net unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies.................... (1,732,815) (81,683) (320,372) 144,770
---------- ---------- ---------- ----------
Net increase in net assets resulting from
operations........................................... 4,057,840 5,049,455 979,112 927,314
Distributions to shareholders from undistributed net
investment income.................................... (9,027,253) (1,021,165) (1,147,936) (472,638)
Increase (decrease) in net assets from capital share
transactions (Note 4)................................ 75,829,921 21,461,411 (5,807,267) (282,293)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets........... 70,860,508 25,489,701 (5,976,091) 172,383
Net assets:
Beginning of year.................................... 61,228,499 35,738,798 16,878,277 16,705,894
---------- ---------- ---------- ----------
End of year.......................................... $132,089,007 $61,228,499 $10,902,186 $16,878,277
========== ========== ========== ==========
Accumulated undistributed net investment income (loss) included in net assets:
Beginning of year................................... $ (180,084) -- $ 18,961 --
========== ========== ========== ==========
End of year......................................... $ 1,248,928 $ (180,084) $ 465,794 $ 18,961
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
FRANKLIN TEMPLETON GLOBAL TRUST
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
Franklin Templeton Global Trust (the Trust), (prior to November 15, 1993, the
Huntington Funds) is an open-end management investment company (mutual fund)
registered under the Investment Company Act of 1940 as amended. The Trust
currently has four separate non-diversified funds (the Funds) in operation
consisting of: Franklin Templeton German Government Bond Fund (the German Bond
Fund), Franklin Templeton Global Currency Fund (the Global Currency Fund),
Franklin Templeton Hard Currency Fund (the Hard Currency Fund), and Franklin
Templeton High Income Currency Fund (the High Income Fund). Each of the Funds
issues a separate series of the Trust's shares and maintains a totally separate
Investment portfolio.
Effective May 1, 1994, the Funds changed their fiscal year end from April 30 to
October 31.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
A. Security Valuation: Portfolio securities listed on a securities exchange or
on the NASDAQ National Market System for which market quotations are readily
available are valued at the last quoted sale price of the day or, if there is no
such reported sale, within the range of the most recent quoted bid and asked
prices. Other securities for which market quotations are readily available are
valued at current market values, obtained from pricing services, which are based
on a variety of factors, including recent trades, institutional size trading in
similar types of securities (considering yield, risk and maturity) and/or
developments related to specific securities. Portfolio securities which are
traded both in the over-the-counter market and on a securities exchange are
valued according to the broadest and most representative market as determined by
the Franklin Advisers, Inc. Other securities for which market quotations are not
available, if any, are valued in accordance with procedures established by the
Board of Trustees.
The value of a foreign security is determined as of the close of trading on the
foreign exchange on which it is traded or as of the close of trading on the New
York Stock Exchange, if that is earlier, and that value is then converted into
its U.S. dollar equivalent at the foreign exchange rate in effect at noon, New
York time, on the day the value of the foreign security is determined. If no
sale is reported at that time, the mean between the current bid and asked price
is used. Occasionally, events which affect the values of foreign securities and
foreign exchange rates may occur between the times at which they are determined
and the close of the exchange and will, therefore, not be reflected in the
computation of the Fund's net asset value, unless material. If events which
materially affect the value of these foreign securities occur during such
period, then these securities will be valued in accordance with procedures
established by the Board of Trustees.
The fair values of securities restricted as to resale, if any, are determined
following procedures established by the Board of Trustees.
B. Income Taxes: The Trust intends to continue to qualify for the tax treatment
applicable to regulated investment companies under the Internal Revenue Code and
to make the requisite distributions to its shareholders which will be sufficient
to relieve it from income taxes. Therefore, no income tax provision is required.
Each Fund is treated as a separate entity in the determination of compliance
with the Internal Revenue Code.
C. Security Transactions: Security transactions are accounted for on the date
the securities are purchased or sold (trade date). Realized gains and losses on
security transactions are determined on the basis of specific identification for
both financial statement and income tax purposes.
Net realized capital gains or losses differ for financial statement and tax
purposes primarily due to differing treatments of wash sale and realized gain or
loss on foreign currency transactions.
Notes to Financial Statements (cont.)
1. SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. Investment Income, Expenses and Distributions: Dividend income and
distributions to shareholders are recorded on the ex-dividend date. Interest
income and estimated expenses are accrued daily. Bond discount, if any, are
amortized as required by the Internal Revenue Code.
Distributions from undistributed net investment income, and net realized capital
gains from security transactions, to the extent they exceed available capital
loss carryovers, are generally made during each year to avoid the 4% excise tax
imposed on regulated investment companies by the Internal Revenue Code.
Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of realized gain/loss on foreign currency
transactions.
E. Expense Allocation: Common expenses incurred by the Trust are allocated among
the Funds based on the ratio of net assets of each Fund to the combined net
assets. In all other respects, expenses are charged to each Fund as incurred on
a specific identification basis.
F. Foreign Currency Translation: The accounting records of the Trust are
maintained in U.S. dollars. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollars at the rate of exchange of such
currencies against U.S. dollars on the date of the valuation. Purchases and
sales of securities, income and expenses are translated at the rate of exchange
quoted on the respective date that such transactions are recorded.
The Trust does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from fluctuations arising
from changes in market prices of securities held. Such fluctuations are included
with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency gains
or losses realized between the trade date and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Trust's books and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized
appreciation/depreciation on translation of assets and liabilities denominated
in foreign currencies arise from changes in the value of assets and liabilities
other than investments in securities at the end of the period, resulting from
changes in exchange rates.
2. FORWARD FOREIGN CURRENCY CONTRACTS
A forward currency contract, which is individually negotiated and privately
traded by currency traders and their customers, is a commitment to purchase or
sell a specific currency for an agreed-upon price at a future date.
The Funds may enter into forward contracts with the objective of minimizing the
risk to the Funds from adverse changes in the relationship between currencies or
to enhance Fund value. The Funds may also enter into a forward contract in
relation to a security denominated in a foreign currency or when it anticipates
receipt in a foreign currency of dividends or interest pay-ments in order to
"lock in" the U.S. dollar price of a security or the U.S. dollar equivalent of
such dividend or interest payments.
Any gain or loss realized from a forward currency contract is recorded as a
realized gain or loss from investments. See the accompanying Statement of
Operations for the Funds' total realized gains or losses from investments for
the year ended October 31, 1995.
The Funds segregated sufficient cash, cash equivalents or readily marketable
debt securities as collateral for commitments created by open forward contracts.
The Funds could be exposed to risk if counterparties to the contracts are unable
to meet the terms of their contracts or if the value of the foreign currency
changes unfavorably.
<TABLE>
<CAPTION>
2. FORWARD FOREIGN CURRENCY CONTRACTS (cont.)
As of October 31, 1995, the German Government Bond Fund had the following
forward foreign currency contracts outstanding:
In Unrealized
Contracts to Buy Exchange for Settlement Date Gain (Loss)
-------------------------------- --------- ---------- --------
<S> <C> <C> <C> <C>
1,384,045 Deutschemark................ U.S. $ 984,000 11/30/95 U.S. $ 1,219
========= ========
As of October 31, 1995, the Global Currency Fund had the following forward
foreign currency contracts outstanding:
In Unrealized
Contracts to Buy Exchange for Settlement Date Gain (Loss)
-------------------------------- --------- ---------- --------
600,000,000 Japanese yen................ U.S. $ 5,942,359 11/06/95 U.S. $ (68,454)
600,000,000 Japanese yen................ 6,001,500 11/06/95 (127,595)
19,800,000 Deutschemark................ 13,921,799 11/24/95 168,340
8,870,000 Australian dollars.......... 6,636,978 11/27/95 110,707
4,000,000 Australian dollars.......... 2,983,800 11/27/95 59,124
--------- --------
U.S. $35,486,436 U.S. $ 142,122
========= ========
As of October 31, 1995, the Hard Currency Fund had the following forward foreign
currency contracts outstanding:
In Unrealized
Contracts to Buy Exchange for Settlement Date Gain (Loss)
-------------------------------- --------- ---------- --------
39,400,000 Swiss francs............... U.S. $34,274,281 11/16/95 U.S. $ 474,522
12,060,000 New Zealand dollars........ 7,963,218 11/16/95 (10,465)
2,400,000,000 Japanese yen............... 23,976,024 11/20/95 (427,527)
2,700,000 Deutschemark............... 1,950,163 11/27/95 (28,487)
19,500,000 Deutschemark............... 14,079,422 11/27/95 (200,656)
--------- --------
U.S. $82,243,108 U.S. $(192,613)
========= ========
As of October 31, 1995, the High Income Fund had the following forward foreign
currency contracts outstanding:
In Unrealized
Contracts to Buy Exchange for Settlement Date Gain (Loss)
-------------------------------- --------- ---------- --------
5,240,000 French francs.............. U.S.$ 1,056,154 11/06/95 U.S. $ 16,707
2,200,000 New Zealand dollars........ 1,452,660 11/16/95 (1,909)
1,330,000 Australian dollars......... 995,172 11/27/95 16,600
1,270,000 Australian dollars......... 960,564 11/27/95 5,564
--------- --------
U.S. $ 4,464,550 U.S. $ 36,962
========= ========
</TABLE>
3. UNAMORTIZED ORGANIZATION COSTS
The organization costs of the Funds are amortized on a straight line basis over
a period of five years from the effective date of registration under the
Securities Act of 1933 for each Fund. In the event the initial shareholder or
its transferee redeems its shares within the five-year period, the pro-rata
share of the then-unamortized deferred organization costs will be deducted from
the redemption price paid to such shareholder. New investors purchasing shares
of the Funds subsequent to that date bear such costs during the amortization
period only as such charges are accrued daily against investment income.
<TABLE>
<CAPTION>
4. TRUST SHARES
At October 31, 1995 there were an unlimited number of $.01 par value shares
authorized. Transactions in each of the Fund's shares for the year ended October
31, 1995 and the six months ended October 31, 1994 were as follows:
Franklin Templeton German Franklin Templeton
Government Bond Fund Global Currency Fund
-------------------- --------------------
Shares Amount Shares Amount
-------- --------- -------- ---------
<S> <C> <C> <C> <C>
Year Ended October 31, 1995
Shares sold................................................ 1,715,926 $ 23,740,110 1,387,801 $ 19,437,877
Shares issued in reinvestment of distributions............. 80,172 1,043,651 322,443 4,365,414
Shares redeemed............................................ (1,109,204) (15,244,589) (1,293,014) (17,926,952)
-------- ---------- -------- ----------
Net increase.......................................... 686,894 $ 9,539,172 417,230 $ 5,876,339
======== ========== ======== ==========
Six Months Ended October 31, 1994
Shares sold................................................ 285,392 $ 3,695,651 778,474 $10,896,522
Shares issued in reinvestment of distributions............. 21,249 273,677 60,640 847,934
Shares redeemed............................................ (393,668) (5,069,066) (592,991) (8,289,161)
-------- ---------- -------- ----------
Net increase (decrease)............................... (87,027) $(1,099,738) 246,123 $ 3,455,295
======== ========== ======== ==========
Franklin Templeton Franklin Templeton
Hard Currency High Income Currency Fund
--------------------- -------------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
Year Ended October 31, 1995
Shares sold................................................ 10,970,103 $146,986,739 158,620 $ 1,797,529
Shares issued in reinvestment of distributions............. 547,399 6,980,135 66,310 738,551
Shares redeemed............................................ (5,816,955) (78,136,953) (737,848) (8,343,347)
-------- ---------- -------- ----------
Net increase (decrease)............................... 5,700,547 $ 75,829,921 (512,918) $ (5,807,267)
======== ========== ======== =========
Six Months Ended October 31, 1994
Shares sold................................................ 3,949,459 $ 52,809,249 285,182 $ 3,231,161
Shares issued in reinvestment of distributions............. 62,920 850,048 26,592 302,633
Shares redeemed............................................ (2,383,635) (32,197,886) (335,876) (3,816,087)
-------- ---------- -------- ----------
Net increase (decrease)............................... 1,628,744 $ 21,461,411 (24,102) $ (282,293)
======== ========== ======== =========
</TABLE>
<TABLE>
<CAPTION>
5. DISTRIBUTIONS AND CAPITAL LOSS CARRYOVERS
At October 31, 1995, for tax purposes, the Funds had capital loss carryovers as
follows:
Franklin Templeton Franklin Templeton
German Government Franklin Templeton Franklin Templeton High Income
Bond Fund Global Currency Fund Hard Currency Fund Currency Fund
------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Capital loss carryovers expiring in:
2001.................................. -- $ 35,182 $301,642 --
2002.................................. -- -- 271 --
2003.................................. -- 173,253 582,143 --
------------- -------------- ------------- ------------
-- $208,435 $884,056 --
============= ============== ============= ============
</TABLE>
<TABLE>
<CAPTION>
6. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding purchases and sales of
short-term securities) for the year ended October 31, 1995, were as follows:
Franklin Templeton Franklin Templeton
German Government Franklin Templeton Franklin Templeton High Income
Bond Fund Global Currency Fund Hard Currency Fund Currency Fund
------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Purchases.............................. $18,785,781 $ 6,559,590 $2,790,138 $1,494,543
============= ============== ============= ============
Sales.................................. $10,943,911 $15,395,859 $5,329,779 $1,521,532
============= ============== ============= ============
</TABLE>
<TABLE>
<CAPTION>
7. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Franklin Advisers, Inc. ("Manager"), under the terms of an agreement, provides
investment advice, administrative services, office space and facilities to each
Fund and receives fees computed monthly based on the average daily net assets at
an annualized rate of .65 of 1% for the Global Currency Fund, the Hard Currency
Fund, and the High Income Fund, and .55 of 1% for the German Government Bond
Fund. Under a subadvisory agreement, Templeton Investment Counsel, Inc. ("TICI"
or the "Subadviser"), an indirect subsidiary of Templeton Worldwide, Inc., which
is a direct, wholly-owned subsidiary of Franklin Resources, Inc. ("Resources")
receives from the Manager a fee equal to an annual rate of .25 of 1% of the
value of the average daily net assets of the Funds, payable monthly.
The terms of the agreements provide that aggregate annual expenses of the Trust
be limited to the extent necessary to comply with the limitations set forth in
the laws, regulations and administrative interpretations of the states in which
the Trust's shares are registered. The Trust's expenses did not exceed these
limitations; however, for the year ended October 31, 1995, Franklin Advisers,
Inc. agreed in advance to waive $31,344 of the managements fees as indicated
below:
Franklin Templeton Franklin Templeton
German Government Franklin Templeton Franklin Templeton High Income
Bond Fund Global Currency Fund Hard Currency Fund Currency Fund
------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Fees waived............................ $ 6,337 -- -- $25,007
============= ============== ============= ============
7. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (cont.)
In its capacity as underwriter for the shares of the Trust, Franklin Templeton
Distributors, Inc. receives commissions on sales of the Trust's shares.
Commissions received by Franklin Templeton Distributors, Inc. and the amounts
which were subsequently paid to other dealers for the period November 1, 1994 to
October 31, 1995 were as follows:
Franklin Templeton Franklin Templeton
German Government Franklin Templeton Franklin Templeton High Income
Bond Fund Global Currency Fund Hard Currency Fund Currency Fund
------------- -------------- ------------- ------------
Total commissions received............. $256,910 $142,677 $1,598,530 $24,176
============= ============== ============= ============
Paid to other dealers.................. $228,348 $125,972 $1,418,414 $21,402
============= ============== ============= ============
</TABLE>
Under the terms of a distribution agreement pursuant to Rule 12b-1 of the
Investment Company Act of 1940, the Global Currency Fund, the Hard Currency
Fund, and the High Income Fund will reimburse Franklin Templeton Distributors,
Inc., in an amount up to 0.45% per annum of the average daily net assets of each
Fund and the German Bond Fund will reimburse Franklin Templeton Distributors,
Inc., in amount up to 0.25% per annum of the average daily net assets of the
Fund for the cost incurred in the promotion, offering and marketing of the
Funds' shares. Fees incurred by the German Bond Fund, Global Currency Fund, Hard
Currency Fund, and High Income Fund under the agreement aggregated $32,842,
$132,583, $349,101, and $34,722, respectively, for the year ended October 31,
1995. Under the terms of a shareholder servicing agreement with Franklin
Templeton Investor Services, Inc., the Trust pays costs on a per shareholder
account basis. Shareholder servicing costs incurred for the year ended October
31, 1995 aggregated $88,070. Certain officers and trustees of the Trust are also
officers and/or directors of Franklin Templeton Distributors, Inc., Franklin
Advisers, Inc., Templeton Worldwide, Inc. and Franklin Templeton Investor
Services, Inc., all wholly-owned subsidiaries of Franklin Resources, Inc.
8. CREDIT RISK
Although each of the Funds has a non-diversified investment portfolio, there are
certain credit risks, foreign currency exchange risk, or event risk due to the
manner in which the Funds are invested, which may subject the Funds more
significantly to economic changes occurring in certain industries or sectors, as
follows:
The Global Currency Fund has investments in excess of 10% of net assets
in debt securities denominated in German deutschmarks.
The Hard Currency Fund has investments in excess of 10% of net assets in
debt securities denominated in German deutschemarks. The High Income Fund
has investments in excess of 10% of net assets in debt securities
denominated in Dutch guilders.
Although the German Bond Fund has a non-diversified investment portfolio, most
of its investments are in the securities of issuers in the country of Germany.
Such concentration may subject the Fund to economic changes and/or foreign
exchange fluctuations between the U.S. dollar and German deutschemark occurring
within that country.
<TABLE>
<CAPTION>
9. FINANCIAL HIGHLIGHTS
Selected data for each share of beneficial interest oustanding throughout each
year, by Fund are as follows:
Per Share Operating Performance Ratios/Supplemental Data
----------------------------------------------------- --------------------------
Ratio
Distri- of Net
Net Net Total butions Distri- Distri- Net Net Ratio of Invest-
Asset Net Realized & From From Net butions butions Asset Assets Expenses ment
Value at Invest- Unrealized Invest- Invest- From From Total Value at End to Average Income to Portfolio
Year Beginning ment Gain ment ment Capital Return of Distri- at End Total of Year Net Assets Average Turnover
Ended of Year Income (Loss) Operations Income Gains Capital+++ butions of Year Return++ (in 000's)(See Note 7)**Net Assets Rate
Apr.30
- ------------------------------------------------------------------------------------------------------------------------------------
Franklin Templeton German Government Bond Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
19931,3 $12.50 $0.27 $ 0.56 $ 0.83 $(0.25) $ -- $ -- $(0.25) $13.08 6.15% $10,738 0.87%* 6.06%* 190.89%*
1994 13.08 0.78 (0.72) 0.06 (0.39) (0.06) (0.40) (0.85) 12.29 0.64 13,341 1.00 4.74 185.66
19944 12.29 0.41 0.92 1.33 (0.36) -- -- (0.36) 13.26 10.92 13,236 1.04* 6.37* 301.60*
19955 13.26 1.53 0.71 2.24 (1.19) -- -- (1.19) 14.31 18.28 24,113 1.25 5.17 67.77
Franklin Templeton Global Currency Fund
19903 13.71 0.97 0.07 1.04 (0.99) (0.10) -- (1.09) 13.66 8.19 71,615 2.09 7.16 --
19913 13.66 1.07 0.57 1.64 (1.07) -- -- (1.07) 14.23 12.21 72,186 1.82 7.36 --
19923 14.23 0.80 (0.22) 0.58 (0.80) -- -- (0.80) 14.01 4.29 63,589 1.82 5.77 --
19933 14.01 0.67 1.01 1.68 (0.69) (1.04) -- (1.73) 13.96 13.28 62,355 1.67 4.64 10.39
1994 13.96 0.57 (0.11) 0.46 (0.57) -- -- (0.57) 13.85 3.41 51,539 1.41 2.78 37.16
19944 13.85 0.25 0.32 0.57 (0.28) -- -- (0.28) 14.14 4.14 56,098 1.04* 3.55* 50.82*
19955 14.14 1.29 (0.49) 0.80 (1.27) -- -- (1.27) 13.67 6.05 59,942 0.99 5.29 46.05
Franklin Templeton Hard Currency Fund
19902,3 12.50 0.42 0.69 1.11 (0.35) (0.08) -- (0.43) 13.18 8.88 26,280 1.65* 6.21* --
19913 13.18 0.92 0.64 1.56 (0.95) (0.96) -- (1.91) 12.83 11.04 33,599 1.66 6.46 --
19923 12.83 0.77 0.28 1.05 (0.76) -- -- (0.76) 13.12 8.40 31,757 1.86 5.85 --
19933 13.12 0.71 1.20 1.91 (0.69) (1.34) -- (2.03) 13.00 17.11 49,569 1.75 5.23 4.88
1994 13.00 0.50 (0.05) 0.45 (0.13) -- (0.37) (0.50) 12.95 3.62 35,739 1.47 3.83 --
19944 12.95 0.26 0.99 1.26 (0.25) -- -- (0.25) 13.95 9.74 61,228 1.05* 3.80* 55.91*
19955 13.95 1.84 (1.02) 0.82 (1.68) -- -- (1.68) 13.09 6.68 132,089 1.15 4.68 15.72
Franklin Templeton High Income Currency Fund
19902,3 12.50 0.73 0.24 0.97 (0.62) (0.01) -- (0.63) 12.84 7.82 11,808 1.73* 11.01* --
19913 12.84 1.34 0.43 1.77 (1.38) (0.31) -- (1.69) 12.92 14.09 52,364 1.59 9.85 --
19923 12.92 1.09 (0.03) 1.06 (1.08) -- -- (1.08) 12.90 8.51 46,575 1.83 8.38 --
19933 12.90 0.90 (0.40) 0.50 (0.94) (0.33) -- (1.27) 12.13 4.49 32,341 1.81 6.86 --
1994 12.13 0.59 (0.85) (0.26) -- -- (0.59) (0.59) 11.28 (2.03) 16,706 1.59 4.80 --
19944 11.28 0.31 0.31 0.62 (0.31) -- -- (0.31) 11.59 5.60 16,878 1.04* 5.44* 1,588.38*
19955 11.59 1.47 (0.51) 0.96 (0.99) -- -- (0.99) 11.56 8.90 10,902 1.25 5.56 115.05
1For the period December 31, 1992 (effective date of registration) to April 30, 1993.
2For the period November 17, 1989 (effective date of registration) to April 30, 1990.
3Financial Highlights for periods ended April 30, 1994, October 31, 1994, and
October 31, 1995 have been audited by Coopers & Lybrand. All other periods were
audited by other independent auditors whose opinions are not included herein.
4Six months ended October 31, 1994.
5For the year ended October 31, 1995.
+Selected data for a share of beneficial interest outstanding throughout the
period indicated.
++Total return measures the change in value of an investment over the periods
indicated. It does not include the maximum 3.0% initial sales charge and assumes
reinvestment of dividends and capital gains at net asset value.
+++Certain distributions have been reclassed to conform with SOP 93-2.
*Annualized.
</TABLE>
<TABLE>
<CAPTION>
9. FINANCIAL HIGHLIGHTS (cont.)
The investment manager reduced management fees and reimbursed other expenses
incurred by the Funds in the Trust. Had such action not been taken, the ratios
of expenses to average net assets would have been as follows:
Ratio of Expenses to
Average Net Assets
--------------------
<S> <C>
Franklin Templeton German Government Bond Fund
19931..................................................... 1.73%*
1994...................................................... 1.83
19944..................................................... 1.77*
19955..................................................... 1.29
Franklin Templeton Global Currency Fund
1994...................................................... 1.61
19944..................................................... 1.12*
Franklin Templeton Hard Currency Fund
1994...................................................... 1.71
19944..................................................... 1.28*
Franklin Templeton High Income Currency Fund
19902..................................................... 2.04
1994...................................................... 1.82
19944..................................................... 1.45*
19955..................................................... 1.45
</TABLE>
FRANKLIN TEMPLETON GLOBAL TRUST
Report of Independent Accountants
To the Shareholders and Board of Trustees
of Franklin Templeton Global Trust:
We have audited the accompanying statements of assets and liabilities of the
various funds comprising the Franklin Templeton Global Trust, including each
Fund's statement of investments in securities and net assets, as of October 31,
1995, and the related statements of operations for the year then ended, the
statement of changes in net assets and the financial highlights for the year
ended October 31, 1995 and six months ended October 31, 1994 and financial
highlights for the year ended April 30, 1994. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights of the Trust
for the periods ending prior to May 1, 1993 were audited by other auditors,
whose report, dated June 11, 1993, expressed an unqualified opinion on such
financial highlights.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statement. Our
procedures included confirmation of securities owned as of October 31, 1995 by
correspondence with custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
various funds comprising the Franklin Templeton Global Trust as of October 31,
1995, the results of their operations for the year then ended, the changes in
their net assets and their financial highlights for the year ended October 31,
1995 and the six months ended October 31, 1994 and financial highlights for the
year ended April 30, 1994, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
November 30, 1995
To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
determined by the presence of a regular beeping tone.
Franklin Templeton Global Trust
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
This chart shows in pie chart format the fund's securities breakdown by asset
allocation as a percentage of the fund's total net assets.
Franklin Templeton German Government Bond Fund
Asset-Type Breakdown on 10/31/95
German State Government Bonds 39.8%
Foreign (Non-German) Government Euromark Bonds 20.9%
German Federal Government Bonds 19.0%
German Government Agency Bonds 8.3%
Short-Term Obligations & Other Net Assets 12.0%
GRAPHIC MATERIAL (2)
The following line graph hypothetically compares the performance of Franklin
Templeton German Government Bond Fund to that of the Salomon Brothers German
Government Bond Index, based on a $10,000 investment from 12/31/92 to 10/31/95.
Period Ending Fund Index
1/1/93 $10000
1/1/93 $9697 $10000
1/31/93 $9829 $10182
2/28/93 $9816 $10220
3/31/93 $10176 $10509
4/30/93 $10293 $10679
5/31/93 $10302 $10707
6/30/93 $9770 $10085
7/31/93 $9665 $10009
8/31/93 $10195 $10562
9/30/93 $10566 $10938
10/31/93 $10376 $10827
11/30/93 $10275 $10664
12/31/93 $10236 $10672
1/31/94 $10248 $10633
2/28/94 $10209 $10673
3/31/94 $10363 $10925
4/30/94 $10359 $10960
5/31/94 $10413 $10949
6/30/94 $10887 $11296
7/31/94 $10980 $11496
8/31/94 $10980 $11458
9/30/94 $11075 $11557
10/31/94 $11490 $11959
11/30/94 $11136 $11660
12/31/94 $11218 $11738
1/31/95 $11571 $12193
2/28/95 $12127 $12740
3/31/95 $13079 $13900
4/30/95 $13115 $13941
5/31/95 $13122 $13941
6/30/95 $13316 $14098
7/31/95 $13448 $14349
8/31/95 $12802 $13632
9/30/95 $13237 $14988
10/31/95 $13589 $13957
GRAPHIC MATERIAL (3)
This chart shows in pie chart format the fund's securities breakdown by asset
allocation as a percentage of the fund's total net assets.
Franklin Templeton Global Currency Fund
Asset-Type Breakdown on 10/31/95
German Mark 39.8%
U.S. Dollar 24.2%
Japanese Yen 19.9%
Australian Dollar 16.1%
GRAPHIC MATERIAL (4)
The following line graph hypothetically compares the performance of Franklin
Templeton Global Currency to that of Salomon Brothers World Money Market Index,
based on a $10,000 investment from 6/27/86 to 10/31/95.
Period Ending Fund Index
7/1/86 $10000
7/1/86 $9697 $10000
7/31/86 $9690 $10354
8/31/86 $9798 $10532
9/30/86 $9868 $10544
10/31/86 $9643 $10360
11/30/86 $9984 $10691
12/31/86 $10238 $10956
1/31/87 $10523 $11380
2/28/87 $10610 $11496
3/31/87 $10903 $11805
4/30/87 $11127 $12006
5/31/87 $10927 $11874
6/30/87 $10919 $11905
7/31/87 $10805 $11804
8/31/87 $11081 $12136
9/30/87 $10978 $12048
10/31/87 $11451 $12691
11/30/87 $12013 $13302
12/31/87 $12558 $13899
1/31/88 $12044 $13344
2/29/88 $12105 $13360
3/31/88 $12434 $13749
4/30/88 $12422 $13706
5/31/88 $12358 $13523
6/30/88 $11968 $13081
7/31/88 $11918 $12927
8/31/88 $12036 $12869
9/30/88 $12096 $13025
10/31/88 $12584 $13573
11/30/88 $12975 $14081
12/31/88 $12832 $13888
1/31/89 $12616 $13456
2/28/89 $12621 $13758
3/31/89 $12551 $13443
4/30/89 $12639 $13565
5/31/89 $12370 $13108
6/30/89 $12514 $13278
7/31/89 $12792 $13912
8/31/89 $12571 $13469
9/30/89 $12667 $14009
10/31/89 $12767 $14145
11/30/89 $13020 $14445
12/31/89 $13369 $14939
1/31/90 $13484 $15208
2/28/90 $13470 $15193
3/31/90 $13531 $15237
4/30/90 $13674 $15478
5/31/90 $13841 $15683
6/30/90 $14018 $16052
7/31/90 $14422 $16814
8/31/90 $14627 $17122
9/30/90 $14864 $17388
10/31/90 $15346 $17994
11/30/90 $15362 $18154
12/31/90 $15300 $18298
1/31/91 $15535 $18644
2/28/91 $15563 $18379
3/31/91 $15240 $17227
4/30/91 $15344 $17416
5/31/91 $15305 $17322
6/30/91 $15175 $17041
7/31/91 $15487 $17498
8/31/91 $15350 $17631
9/30/91 $15554 $18388
10/31/91 $15571 $18485
11/30/91 $15805 $18895
12/31/91 $16463 $19842
1/31/92 $16010 $19286
2/29/92 $15837 $19047
3/31/92 $15836 $19038
4/30/92 $16003 $19184
5/31/92 $16445 $19748
6/30/92 $17073 $20574
7/31/92 $17338 $21096
8/31/92 $17675 $21951
9/30/92 $17743 $21655
10/31/92 $17228 $20513
11/30/92 $17097 $20101
12/31/92 $17062 $20027
1/31/93 $17122 $20127
2/28/93 $17452 $20076
3/31/93 $17813 $20641
4/30/93 $18128 $21155
5/31/93 $18371 $21368
6/30/93 $18081 $20595
7/31/93 $18187 $20510
8/31/93 $18311 $20867
9/30/93 $18317 $21222
10/31/93 $18123 $20957
11/30/93 $18090 $20816
12/31/93 $18090 $20841
1/31/94 $18536 $21014
2/28/94 $18675 $21369
3/31/94 $18602 $21628
4/30/94 $18746 $21861
5/31/94 $18986 $21931
6/30/94 $19200 $22644
7/31/94 $19046 $22687
8/31/94 $19137 $22882
9/30/94 $19243 $23404
10/31/94 $19523 $23947
11/30/94 $19375 $23291
12/31/94 $19551 $23456
1/31/95 $19634 $23850
2/28/95 $19941 $24404
3/31/95 $20927 $25926
4/30/95 $21052 $26002
5/31/95 $21005 $25783
6/30/95 $21212 $26139
7/31/95 $21047 $26233
8/31/95 $20431 $25244
9/30/95 $20516 $25830
10/31/95 $20704 $25918
GRAPHIC MATERIAL (5)
This chart shows in pie chart format the fund's securities breakdown by asset
allocation as a percentage of the fund's total net assets.
Franklin Templeton Hard Currency Fund
Asset-Type Breakdown on 10/31/95
German Mark 35.4%
Swiss Franc 28.3%
Japanese Yen 22.1%
New Zealand Dollar 11.4%
U.S. Dollar 2.8%
GRAPHIC MATERIAL (6)
The following line graph hypothetically compares the performance of Franklin
Templeton Hard Currency Fund to that of the Salomon Brothers World Money Market
Index, based on a $10,000 investment from 11/17/89 to 10/31/95.
Period Ending Fund Index
12/1/89 $10000
12/1/89 $9697 $10000
12/31/89 $10197 $10342
1/31/90 $10325 $10528
2/28/90 $10234 $10518
3/31/90 $10176 $10548
4/30/90 $10318 $10715
5/31/90 $10437 $10857
6/30/90 $10641 $11112
7/31/90 $11204 $11640
8/31/90 $11374 $11853
9/30/90 $11612 $12037
10/31/90 $12171 $12457
11/30/90 $12247 $12568
12/31/90 $12256 $12667
1/31/91 $12564 $12907
2/28/91 $12347 $12723
3/31/91 $11296 $11926
4/30/91 $11457 $12057
5/31/91 $11276 $11992
6/30/91 $10998 $11797
7/31/91 $11388 $12114
8/31/91 $11485 $12206
9/30/91 $12057 $12729
10/31/91 $12096 $12797
11/30/91 $12467 $13081
12/31/91 $13270 $13736
1/31/92 $12619 $13352
2/29/92 $12375 $13186
3/31/92 $12340 $13179
4/30/92 $12419 $13281
5/31/92 $12965 $13671
6/30/92 $13620 $14243
7/31/92 $13929 $14605
8/31/92 $14566 $15196
9/30/92 $14824 $14991
10/31/92 $13972 $14201
11/30/92 $13695 $13916
12/31/92 $13568 $13864
1/31/93 $13690 $13933
2/28/93 $13850 $13899
3/31/93 $14207 $14289
4/30/93 $14544 $14645
5/31/93 $14605 $14793
6/30/93 $14164 $14257
7/31/93 $14197 $14199
8/31/93 $14221 $14446
9/30/93 $14313 $14691
10/31/93 $14122 $14508
11/30/93 $14060 $14411
12/31/93 $14199 $14428
1/31/94 $14568 $14548
2/28/94 $14858 $14794
3/31/94 $14852 $14973
4/30/94 $15070 $15134
5/31/94 $15147 $15183
6/30/94 $15693 $15676
7/31/94 $15672 $15706
8/31/94 $15781 $15841
9/30/94 $16150 $16202
10/31/94 $16538 $16578
11/30/94 $16153 $16124
12/31/94 $16343 $16238
1/31/95 $16547 $16511
2/28/95 $17013 $16894
3/31/95 $18250 $17948
4/30/95 $18300 $18000
5/31/95 $18116 $17849
6/30/95 $18370 $18095
7/31/95 $18214 $18161
8/31/95 $17125 $17476
9/30/95 $17534 $17881
10/31/95 $17646 $17942
GRAPHIC MATERIAL (7)
This chart shows in pie chart format the fund's securities breakdown by asset
allocation as a percentage of the fund's total net assets.
Franklin Templeton High Income Currency Fund
Asset-Type Breakdown on 10/31/95
Australian Dollar 17.9%
German Mark 4.2%
Spanish Peseta 4.6%
Czech Koruna 3.5%
Italian Lira 4.7%
British Pound 6.7%
Thai Baht 3.6%
Dutch Gilder 17.6%
Danish Krone 6.7%
New Zealand Dollar 13.3%
French Franc 9.7%
Swedish Krona 3.8%
U.S. Dollar 3.7%
GRAPHIC MATERIAL (8)
The following line graph hypothetically compares the performance of Franklin
Templeton High Currency Fund to that of Salomon Brothers World Money Market
Index, based on a $10,000 investment from 11/17/89 to 10/31/95.
Period Ending Fund Index
12/1/89 $10000
12/1/89 $9700 $10000
12/31/89 $9969 $10342
1/31/90 $10140 $10528
2/28/90 $10156 $10518
3/31/90 $10242 $10548
4/30/90 $10383 $10715
5/31/90 $10543 $10857
6/30/90 $10897 $11112
7/31/90 $11263 $11640
8/31/90 $11522 $11853
9/30/90 $11599 $12037
10/31/90 $11832 $12457
11/30/90 $11900 $12568
12/31/90 $11814 $12667
1/31/91 $12129 $12907
2/28/91 $12160 $12723
3/31/91 $11760 $11926
4/30/91 $11847 $12057
5/31/91 $11801 $11992
6/30/91 $11636 $11797
7/31/91 $11913 $12114
8/31/91 $11905 $12206
9/30/91 $12174 $12729
10/31/91 $12259 $12797
11/30/91 $12472 $13081
12/31/91 $13232 $13736
1/31/92 $12762 $13352
2/29/92 $12662 $13186
3/31/92 $12662 $13179
4/30/92 $12855 $13281
5/31/92 $13360 $13671
6/30/92 $13993 $14243
7/31/92 $14336 $14605
8/31/92 $14761 $15196
9/30/92 $13937 $14991
10/31/92 $13265 $14201
11/30/92 $13004 $13916
12/31/92 $12848 $13864
1/31/93 $12989 $13933
2/28/93 $12770 $13899
3/31/93 $13083 $14289
4/30/93 $13432 $14645
5/31/93 $13630 $14793
6/30/93 $12968 $14257
7/31/93 $12612 $14199
8/31/93 $12656 $14446
9/30/93 $12828 $14691
10/31/93 $12625 $14508
11/30/93 $12439 $14411
12/31/93 $12513 $14428
1/31/94 $12840 $14548
2/28/94 $12928 $14794
3/31/94 $13036 $14973
4/30/94 $13159 $15134
5/31/94 $13221 $15183
6/30/94 $13361 $15676
7/31/94 $13361 $15706
8/31/94 $13431 $15841
9/30/94 $13621 $16202
10/31/94 $13884 $16578
11/30/94 $13644 $16124
12/31/94 $13788 $16238
1/31/95 $13782 $16511
2/28/95 $14067 $16894
3/31/95 $14653 $17948
4/30/95 $14761 $18000
5/31/95 $14603 $17849
6/30/95 $14802 $18095
7/31/95 $15002 $18161
8/31/95 $14581 $17476
9/30/95 $14936 $17881
10/31/95 $15135 $17942
