FRANKLIN TEMPLETON GLOBAL TRUST, N-30D, 1997-01-10

FRANKLIN TEMPLETON GLOBAL TRUST
N-30D, 1997-01-10

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PRESIDENT'S LETTER

TABLE OF CONTENTS

PRESIDENT'S LETTER ...................... 1
ECONOMIC OVERVIEW ....................... 4
FUND REPORTS
Franklin Templeton German
Government Bond Fund ................. 6
Franklin Templeton
Global Currency Fund ................. 12
Franklin Templeton
Hard Currency Fund ................... 18
Franklin Templeton
High Income Currency Fund ............ 24
STATEMENT OF INVESTMENTS ................ 30
FINANCIAL STATEMENTS .................... 38
NOTES TO FINANCIAL STATEMENTS ........... 42
REPORT OF INDEPENDENT
ACCOUNTANTS ............................. 50

December 16, 1996

Dear Shareholders:

We are pleased to bring you the annual report for the Franklin Templeton Global
Trust for the period ended October 31, 1996.

A REWARDING DECADE

The year under review witnessed a milestone in the life of the Franklin
Templeton Global Trust, as the Global Currency Fund marked its tenth anniversary
on June 27, 1996. The performance of this fund over its first decade supports
the notion that cash comes in many colors, and those who take advantage of cash
instruments denominated in many currencies may improve their chances of doing
better than those who stick to just one currency. This is particularly the case
if that one currency -- typically the home currency -- has a pattern of
depreciation over time.

A CASE IN POINT IS THE U.S. DOLLAR. In the ten-year period ended October 31,
1996, the Franklin Templeton Global Currency Fund achieved an average annual
total return of +7.75%, as shown in the Performance Summary on page 17, or more
than one and one-half percentage points per year greater than the 6.07% average
annual return on one-year U.S. Treasury bills over the same period.1 Compounding
that differential reveals the benefit the fund's currency diversification
provided over the period. $10,000 invested in the Global Currency Fund on
November 1, 1986 grew to $21,095 by October 31, 1996, while $10,000 invested in
one-year U.S. Treasury bills for the same period of time grew to $18,020.1

1. The value of Treasuries, if held to maturity, is fixed; principal is
guaranteed and interest is fixed. The share price and investment return of the
Franklin Templeton Global Currency Fund fluctuates with market conditions.

RECENT PERFORMANCE

The dollar's upward path during the year under review dampened the performance
of the four funds that comprise the Franklin Templeton Global Trust. As often
happens, the dollar's improved performance coincided with a strong showing of
U.S. securities markets. Given the amazing longevity of the current bull market,
a bear market may be little more than an abstraction in the minds of many at
this point. However, when the bears do become more palpable, the benefits of
currency diversification may likewise be more evident. A wise man once said,
"Buy straw hats in the wintertime, for summer will surely follow." The same
might be said of foreign currencies today.

I am pleased to report that the funds comprising the Trust generally performed
well compared with the internal benchmarks against which they are managed. In
our opinion, the portfolio management team at Templeton Investment Counsel, Inc.
made the best of a difficult market situation with the three currency funds,
generally overweighting currencies that enabled them to outperform their
internal benchmark portfolios.

Complete details on the funds' performance may be found later in this report.

A DISQUIETING TREND

Many commentators have noted with concern the recent rapid growth in the Federal
Reserve's custody account, where the Fed holds U.S. Treasury obligations
belonging to foreign central banks. In the 12 months under review, holdings in
this account have grown over 20% to nearly $600 billion, leaving foreign central
banks owning almost 20% of all marketable, outstanding U.S. Treasury debt. In
effect, these foreign monetary authorities have been financing the U.S. current
account deficit -- the shortfall arising because Americans do not save enough to
meet their domestic investment needs.

No doubt these massive purchases do not represent acts of charity on the part of
foreign governments. Rather, they reflect the desire of these governments to
stimulate their own economies. To buy U.S. Treasuries, the Japanese government
must obtain dollars and sell yen, which holds down the value of the yen, leading
to more competitive Japanese exports abroad. But this trend raises at least two
interesting questions. First, how long will such activity continue? And second,
what happens when foreign economies recover and foreign governments decide they
no longer need to prop up their economies in this manner? I leave it to the
reader to ponder the answers, but I think that in the absence of foreign central
bank buying, the value of the U.S. dollar would be lower and U.S. interest rates
would be higher.

STAY THE COURSE

As we each navigate our own way through unpredictable financial waters, I hope
you take some comfort in knowing that the four funds of the Franklin Templeton
Global Trust have continued to meet their primary objective of providing
shareholders with a conservative, convenient, cost-effective protection against
depreciation of the U.S. dollar.

As always, thank you for investing with us.

Sincerely,

Donald P. Gould
President
Franklin Templeton Global Trust

ECONOMIC OVERVIEW

During the year under review, U.S. gross domestic product (GDP) grew at a rate
of approximately 2.3%. Consumer spending, new housing activity, and
manufacturing activity rose robustly during the first half of the period, but
grew somewhat more slowly during the second half. Despite upward pressure on
food prices caused by poor weather in the Midwest, inflation remained subdued,
and the Consumer Price Index increased by only 3.5%. Price increases in other
commodities were also negligible, and as of October 31, 1996, indications of
tightness in the labor market were not a major problem. By the end of January
1996, the Federal Reserve Board had lowered the federal funds rate from 5.75% to
5.25%, where it remained through the end of the reporting period.

In our opinion, the likelihood that the economy will suffer a major setback in
the immediate future appears small. We believe the Federal Reserve will probably
focus primarily on the pace at which the U.S. economy creates new jobs. There is
a shortage of skilled labor for certain jobs, and wage inflation could
potentially become a problem. However, as long as the economy continues to
strike a favorable balance between growth and inflation, we think the Federal
Reserve is not likely to change short-term interest rates.

The German economy continued to experience weak growth despite historically low
interest rates and a weakening currency. For the 12 months ended June 30, 1996,
the latest period for which statistics are available, German GDP expanded by
approximately 1%, while the discount rate remained unchanged at 2.5%, its
historical low, since April 1996. The mark declined 7.74% versus the U.S. dollar
over the 12-month reporting period, standing at 1.5173 per dollar on October 31,
1996. Although some statistics released near the end of this reporting period
pointed to a sustainable economic recovery, this conclusion might not be
justified because of fiscal tightening budgeted for 1997. We expect that this
slow growth, along with the approaching union of many European currencies,
should result in continued weakness in the mark versus the U.S. dollar and other
major currencies.

On the other side of the world, Japan's economy failed to make a definite
recovery from its five-year recession, even though the discount rate there has
been at the historically low level of 0.50% since September 1995. Between
October 31, 1995 and October 31, 1996, the yen weakened from a level of 102 per
dollar to 114 per dollar. Although some economic data indicated that consumer
and business confidence were beginning to improve, the August 1996 tankan
report2 was quite discouraging. This report also revived discussion of yet
another increase in government spending in the fourth quarter of 1996 to help
spark the economy. However, the government already has scheduled a consumption
tax increase to take effect in April 1997 and this is likely to become another
drag on the still fragile economy. In our opinion, while interest rates may
gradually rise during 1997, the Bank of Japan probably won't raise the discount
rate until at least the middle of the year.

2. The tankan report is a comprehensive quarterly survey of over 10,000 Japanese
companies concerning current business conditions and expectations for future
business conditions.

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.

During the fiscal year under review, German gross domestic product (GDP) grew at
an approximate rate of only 1%. In response, the Bundesbank, Germany's central
bank, cut its discount rate to the historically low level of 2.5% in April, and
reduced the two-week interbank lending rate by 0.30% in August. As a result, the
price of longer-term German bonds rose during the period, as the yield on the
benchmark 10-year German government bond fell from 6.44% at the beginning of the
period to 6.00% at the end. But this price increase was offset for U.S. dollar
investors such as your fund, by the 7.74% decline in the value of the German
mark versus the dollar over the 12-month period.

Because the fund is virtually 100% invested in mark-denominated assets and does
not hedge its exposure to changes in the mark/U.S. dollar exchange rate, a
decline in the value of the mark always reduces the fund's value expressed in
dollars.

Within this environment, the Franklin Templeton German Government Bond Fund
posted a 12-month total return of -0.14%, as described in the Performance
Summary on page 11. However, we always maintain a long-term perspective when
managing the fund, and we encourage shareholders to view their investments in a
similar manner. As you can also see in the Performance Summary, the fund
delivered a cumulative total return of +39.92%, and an annualized return of
+8.29%, for the period between its inception on December 31, 1992, and October
31, 1996.

Portfolio turnover during the period emphasized maintainence of the fund's
diversification among different sectors of the German bond market.

As of October 31, 1996, our largest class of holdings was German state
government bonds (26.7% of total net assets). We increased our exposure to
non-German issuers of higher-yielding bonds denominated in marks, from 20.9% to
23.5%, and invested 18.7% in Pfandbriefe bonds.3 Also, we slightly lengthened
the average maturity of the portfolio in seeking to take advantage of the higher
yields available from long-term bonds versus short-term bonds. With an average
maturity of 6.3 years at the end of the period, the fund roughly matches the
maturity of the J.P. Morgan German Government Bond Index, although we have a
much higher allocation to the non-federal sectors of the German market, such as
German state government bonds and German government agency bonds.

3.Pfandbriefe bonds are securities backed exclusively by loans to German public
sector institutions.

Looking forward, we believe that German economic growth may soon accelerate
slightly, although interest rates probably will not rise significantly in the
near future. We expect that the Bundesbank may focus on promoting a smooth
transition to the proposed European Monetary Union rather than on economic
growth, and in our opinion, short-term interest rates may even decline somewhat.
Believing that German bonds with maturities greater than five years and
non-Federal bonds such as those issued by government agencies are the most
attractive parts of the German bond market, we will continue to search for
opportunities in these sectors.

GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX AT END OF DOCUMENT

Shareholders should remember that investing in a portfolio of a single country's
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. A non-diversified
foreign fund may not be appropriate for all investors and should not be
considered a complete investment program.

This discussion reflects the strategies we employed for the fund during the past
fiscal year, and includes our opinions as of the close of the period. Since
economic and market conditions are constantly changing, our strategies,
evaluations, conclusions and decisions regarding portfolio holdings may change
as new circumstances arise. Although past performance of a specific investment
or sector cannot guarantee future performance, such information can be useful in
analyzing the securities we purchase or sell for the fund.

PERFORMANCE SUMMARY

The Franklin Templeton German Government Bond Fund provided a cumulative total
return of -0.14% for the one-year period ended October 31, 1996. Cumulative
total return represents 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 by $1.15, from
$14.31 on October 31, 1995, to $13.16 on October 31, 1996. During this same
period, shareholders received distributions totaling $1.12 per share, of which
61.5 cents ($0.615) represented dividends from net investment income, 38.5 cents
($0.385) represented a special year-end dividend distribution, 6.0 cents ($0.06)
represented return of capital, and 6.0 cents ($0.06) represented capital gains,
of which 5.3 cents ($0.053) represented long-term capital gains. During the
year, the fund recognized net foreign currency losses due to fluctuations in the
value of its foreign currency denominated securities and foreign currency
holdings. Under the Internal Revenue Code, these losses reduce the fund's
regular investment income available for distribution to shareholders causing a
portion of the total distributions to be characterized as a return of capital.
In general, return-of-capital distributions are not taxable; rather, they reduce
the cost basis of your shares in the fund, and affect the computation of a
capital gain or loss when you sell your shares. For more information, please
consult your personal tax advisor, or refer to IRS Publication 550 (Investment
Income and Expenses).

Based on the maximum offering price of $13.57 on October 31, 1996, and an
annualization of October's monthly dividend of 1.6 cents ($0.016) per share, the
fund's distribution rate was 1.41%. 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.

The graph to the right compares the performance of the fund since inception with
the performance of the unmanaged Salomon Brothers German Government Bond Index,
which provides an indication of the performance of the German government bond
market. This index is unmanaged and thus has inherent performance differences in
comparison with the fund. It does not pay management fees to cover salaries of
security analysts or portfolio managers, or pay commissions or market spreads to
buy and sell bonds. And, unlike unmanaged indices, mutual funds generally are
not 100% invested because of the need to have cash on hand to redeem shares. In
addition, the performance shown for the fund includes the maximum initial sales
charge, all fund expenses and account fees. If operating expenses such as the
fund's had been applied to this index, the index's 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.

GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF DOCUMENT

FRANKLIN TEMPLETON GERMAN GOVERNMENT BOND FUND
PERIODS ENDED OCTOBER 31, 1996

SINCE
INCEPTION
ONE-YEAR THREE-YEAR (12/31/92)

Cumulative Total Return1 -0.14% 30.77% 39.92%

Average Annual Total Return2 -3.14% 8.26% 8.29%

Distribution Rate3 1.41%

30-Day Standardized Yield4 3.88%

10/31/94 10/31/95 10/31/96

One-Year Total Return5 10.74% 18.28% -0.14%

1. Cumulative total return represents the change in value of an investment over
the indicated periods and does not include sales charges.

2. Average annual
total return represents the average annual change in value of an investment over
the indicated periods and includes the maximum 3.0% initial sales charge.

3.Distribution rate is based on the maximum offering price of $13.57 per share
on October 31, 1996, and an annualization of the most recent monthly dividend of
1.6 cents ($0.016) per share.

4. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio during the 30 days ended October 31, 1996.

5. One-year total return represents the change in value of an investment over
the one-year periods ended on the specified dates and does not include the
initial sales charge.

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 expense reductions by the fund's
manager increased the fund's total returns, and past performance is not
predictive of future results.

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.

Since the Franklin Templeton Global Currency Fund holds primarily short-term
securities whose prices have been relatively stable in local currency terms,
most of its total return is based on changes in the value of the dollar versus
the local currencies of countries where it is invested, in addition to net
investment income derived from interest paid by portfolio securities. This can
put your fund at a disadvantage during a period when the U.S. dollar is
strengthening, because our internal benchmark portfolio consists of only a
one-third weighting in the U. S. money markets, with one-third each in the local
currency money markets of Japan and Germany. The fiscal year covered by this
report was such a period. The U.S. dollar gained 11.88% versus the yen and 7.74%
versus the mark. However, using the fund's ability to switch investments among
money markets, we sought to take advantage of exchange rate fluctuations by
moving assets into currencies we felt would perform better in this environment.

Because of the yen's persistent weakness, we underweighted our exposure to it
throughout the fiscal year. By October 31, 1996, only 5.8% of the portfolio's
total net assets were denominated in yen, down from 19.9% one year earlier. In
contrast, we increased our Australian dollar position, from 16.1% to 30.4%. We
also reduced our holdings denominated in German marks, from 39.8% at the
beginning of the period to 21.9%, while initiating a 4.9% position in New
Zealand dollars and increasing our holdings in U.S. dollars by approximately
12.8%.

In our opinion, weak economic growth in Germany and Japan should lead to further
U.S. dollar strength in the short term. However, the greatest portion of this
move could be behind us, and if the Japanese and German economies rebound, the
dollar may resume its long-term decline. In addition, we believe that the
Australian and New Zealand currencies have the potential to continue to perform
well as world economic growth increases. The Australian dollar, in particular,
may continue to be supported by that country's position as an important supplier
of raw materials at a time of heavy worldwide demand for commodities. As always,
we will continue to monitor economic situations throughout the world and try to
take advantage of opportunities that may occur in global currency markets.

Of course, there are special risk considerations associated with global
investing related to market, currency, economic, social, political, and other
factors, as discussed in the prospectus. Because the fund's assets are largely
denominated 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 OMITTED - SEE APPENDIX AT END OF DOCUMENT

Although the fund's Statement of Investments on page 32 of this report indicates
that the fund held 80.1% of its portfolio investments in U.S. dollar-denominated
assets as of October 31, 1996, its net exposure to the U.S. dollar on that date
was only 37.0%. 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 44) 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 cumulative total return
of +1.27% for the one-year period ended October 31, 1996. Cumulative total
return represents 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 by $0.87, from
$13.67 on October 31, 1995, to $12.80 on October 31, 1996. During this same
period, shareholders received distributions totaling $1.02 per share, of which
26.0 cents ($0.26) represented dividends from net investment income, 45.0 cents
($0.45) represented a special year-end dividend distribution, and 31.0 cents
($0.31) represented return of capital. During the year, the fund recognized net
foreign currency losses due to fluctuations in the value of its foreign currency
denominated securities and foreign currency holdings. Under the Internal Revenue
Code, these losses reduce the fund's regular investment income available for
distribution to shareholders causing a portion of the total distributions to be
characterized as a return of capital. In general, return-of-capital
distributions are not taxable; rather, they reduce the cost basis of your shares
in the fund, and affect the computation of a capital gain or loss when you sell
your shares. For more information, please consult your personal tax advisor, or
refer to IRS Publication 550 (Investment Income and Expenses).

Based on the maximum offering price of $13.20 on October 31, 1996, and an
annualization of October's monthly dividend of 4.5 cents ($0.045) per share, the
fund's distribution rate was 4.09%. 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.

The graph on page 16 compares the performance of the fund over the last 10 years
with the performance of the unmanaged Salomon Brothers World Money Market Index,
which provides an indication of the performance of the U.S. dollar and
Eurocurrency short-term sectors. It is important to note that 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 during periods of dollar strength.

The Salomon Brothers World Money Market Index is unmanaged and thus has inherent
performance differences in comparison with the fund. It does not pay management
fees to cover salaries of security analysts or portfolio managers, or pay
commissions or market spreads to buy and sell bonds. And, unlike unmanaged
indices, mutual funds generally are not 100% invested because of the need to
have cash on hand to redeem shares. In addition, the performance shown for the
fund includes the maximum initial sales charge, all fund expenses and account
fees. If operating expenses such as the fund's had been applied to this index,
the index's 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.

GRAPHIC MATERIAL 4 OMITTED - SEE APPENDIX AT END OF DOCUMENT

FRANKLIN TEMPLETON GLOBAL CURRENCY FUND
PERIODS ENDED OCTOBER 31, 1996
SINCE
INCEPTION
ONE-YEAR FIVE-YEAR TEN-YEAR (6/27/86)

Cumulative Total Return1 ...... 1.27% 34.62% 117.32% 116.10%

Average Annual Total Return2 .. -1.77% 5.49% 7.75% 7.42%

Distribution Rate3 ............ 4.09%

30-Day Standardized Yield4.... 3.92%

10/31/92 10/31/93 10/31/94 10/31/95 10/31/96

One-Year Total Return5 .... 10.64% 5.20% 7.72% 6.05% 1.27%

1. Cumulative total return represents the change in value of an investment over
the indicated periods and does not include sales charges.

2. Average annual total return represents the average annual change in the value
of an investment over the indicated periods and includes the maximum 3.0%
initial sales charge.

3. Distribution rate is based on the maximum offering price of $13.20 per share
on October 31, 1996, and an annualization of the most recent monthly dividend of
4.5 cents ($0.045) per share.

4. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio during the 30 days ended October 31, 1996.

5. One-year total return represents the change in value of an investment over
the one-year periods ended on the specified dates and does not include the
initial sales charge.

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 returns, and past
performance is not predictive of future results.

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, IN THE VIEW OF THE INVESTMENT MANAGER, ARE
CURRENTLY PURSUING ECONOMIC POLICIES CONDUCIVE TO CONTINUED LOW RATES OF
INFLATION AND CURRENCY APPRECIATION VERSUS THE U.S. DOLLAR OVER THE LONG TERM.

Since the Franklin Templeton Hard Currency Fund holds primarily short-term
securities whose prices have been relatively stable in local currency terms,
most of its total return is based on changes in the value of the dollar versus
the local currencies of countries where it is invested, in addition to net
investment income derived from interest paid by portfolio securities. During the
12 months covered by this report, the U.S. dollar gained in value against most
of the world's other major currencies, including three of the four held in the
portfolio. It increased 11.88% versus the yen, 7.74% versus the mark, and 11.65%
versus the Swiss franc, but declined 7.27% versus the New Zealand dollar. Since
periods of U.S. dollar strength are generally periods of weakness for the fund,
it delivered a one-year total return of -5.99%, as shown in the Performance
Summary on page 23. However, we always maintain a long-term perspective when
managing the fund, and we encourage shareholders to view their investments in a
similar manner. As you can also see in the Performance Summary, the fund
delivered a total return of +74.90%, and an annualized return of +7.89%, for the
period between its inception on November 17, 1989 and October 31, 1996.

Although our internal benchmark portfolio consists of one-third weightings each
in the local currency money markets of Japan, Germany, and Switzerland, we use
the fund's ability to switch investments among these money markets and others,
as described in the prospectus, whenever we see potential to improve the fund's
performance. For example, the mark was the only currency in which we increased
our holdings during the period because we felt that German money market
investments would perform relatively well in the unfavorable foreign exchange
environment. Over the course of the fiscal year, we increased these holdings,
from 35.4% to 47.7% of total net assets. In contrast, we underweighted our
exposure to the yen because of its persistent weakness and reduced these
holdings during the period, from 22.1% of total net assets to 15.9%. Although we
initially replaced these yen-based assets with Swiss franc assets during the
first half of the year, the fund's Swiss franc assets had declined to 24.9% of
total net assets by October 31, 1996, slightly below year-earlier levels. In
addition, our exposure to the New Zealand dollar declined, from 11.4% to 5.1% of
total net assets.

Looking forward, we believe factors causing the dollar to weaken since the early
1970s (the shrinking role of the U.S. in the world economy, the still unsolved
budget deficit and the increasing dependence on foreigners to finance these
deficits) are still in place. While the dollar has increased in value over the
past 18 months versus most major currencies, it may be more accurate to say that
other currencies have weakened, rather than the dollar has strengthened. If the
Japanese and German economies rebound and world economic growth increases, the
dollar could resume its long-term decline.

GRAPHIC MATERIAL 5 OMITTED - SEE APPENDIX AT END OF DOCUMENT

As always, we will continue to monitor economic happenings, and try to position
the portfolio to take advantage of the many opportunities in the currency
markets around the world.

Although the fund's Statement of Investments on page 34 of this report indicates
that the fund held 68.0% of its portfolio investments in U.S. dollar-denominated
assets as of October 31, 1996, its net exposure to the U.S. dollar on that date
was only 6.4%. 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 44) 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 cumulative total return of
- -5.99% for the one-year period ended October 31, 1996. Cumulative total return
represents 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 by $1.45, from
$13.09 on October 31, 1995 to $11.64 on October 31, 1996. During this same
period, shareholders received distributions totaling 68.0 cents ($0.68) per
share, of which 6.0 cents ($0.06) represented dividends from net investment
income and 62.0 cents ($0.62) represented return of capital. During the year,
the fund recognized net foreign currency losses due to fluctuations in the value
of its foreign currency denominated securities and foreign currency holdings.
Under the Internal Revenue Code, these losses reduce the fund's regular
investment income available for distribution to shareholders causing a portion
of the total distributions to be characterized as a return of capital. In
general, return-of-capital distributions are not taxable; rather, they reduce
the cost basis of your shares in the fund, and affect the computation of a
capital gain or loss when you sell your shares. For more information, please
consult your personal tax advisor, or refer to IRS Publication 550 (Investment
Income and Expenses).

Based on the maximum offering price of $12.00 on October 31, 1996, and an
annualization of October's monthly dividend of 4.4 cents ($0.044) per share, the
fund's distribution rate was 4.40%. 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.

The graph on page 22 compares the performance of the fund since inception with
the performance of the unmanaged Salomon Brothers World Money Market Index,
which provides an indication of the performance of the U.S. dollar and
Eurocurrency short-term sectors. It is important to note that the Franklin
Templeton Hard Currency Fund does not generally maintain a significant 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 OMITTED - SEE APPENDIX AT END OF DOCUMENT

FRANKLIN TEMPLETON HARD CURRENCY FUND
PERIODS ENDED OCTOBER 31, 1996

SINCE
INCEPTION
ONE-YEAR FIVE-YEAR (11/17/89)

Cumulative Total Return1 -5.99% 37.07% 74.90%
Average Annual Total Return2 -8.78% 5.86% 7.89%

Distribution Rate3 4.40%
30-Day Standardized Yield4 4.49%

10/31/92 10/31/93 10/31/94 10/31/95 10/31/96
One-Year Total Return5 15.51% 1.07% 17.11% 6.68% -5.99%

1. Cumulative total return represents the change in value of an investment over
the indicated periods and does not include sales charges.

2. Average annualtotal return represents the average annual change in the value
of an investment over the indicated periods and includes the maximum 3.0%
initial sales charge.

3. Distribution rate is based on the maximum offering price of $12.00 per share
on October 31, 1996, and an annualization of the most recent monthly dividend of
4.4 cents ($0.044) per share.

4. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio during the 30 days ended October 31, 1996.

5. One-year total return represents the change in value of an investment over
the one-year periods ended on the specified dates and does not include the
initial sales charge.

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.

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 market conditions, the Franklin Templeton High Income Currency Fund
invests at least 65% of its assets in instruments denominated in at least three
of the ten highest-yielding Major Currencies as defined in the prospectus, and
in the U.S. dollar. The ten countries eligible for investment during this period
were Canada, the United Kingdom, the Netherlands, France, Italy, Spain, Germany,
Sweden, Australia, and New Zealand. The five largest allocations, not including
the United States, were denominated in the currencies of Australia (20.3% of
total net assets), Canada (15.2%), the U.K. (11.0%), Spain (9.7%), and Italy
(8.5%). Approximately 15.4% of the fund's assets were denominated in U.S.
dollars, and the fund also held smaller positions in the currencies of France,
Germany, Sweden and New Zealand.

Since the fund holds primarily short-term securities whose prices have been
relatively stable in local currency terms, most of its total return is based on
changes in the value of the dollar versus the local currencies of countries
where it is invested. The fund also earns net investment income derived from
interest paid by portfolio securities. Of course, during any given time period,
the dollar may strengthen against some currencies, while weakening against
others, and when we see potential to improve the fund's performance, we switch
our investments among the eligible currencies. During the 12 months covered by
this report, the United Kingdom, Italy, and Sweden were slow to cut interest
rates even though they continued to experience low inflation. As a result, these
currencies gained 3.0%, 4.6%, and 1.0%, respectively, against the U.S. dollar.
Within this environment, the fund posted a +5.56% total return for the period,
as shown in the Performance Summary on page 29.

Attempting to take advantage of the strengthening of Europe's higher-yielding
currencies, the fund increased its exposure in the United Kingdom, Italy, and
Sweden. We expect the currencies of these and other European countries should
continue to perform well. The traditionally higher-yielding countries have taken
dramatic steps to improve their fiscal and monetary conditions, and as they
strive towards their anticipated monetary union in 1999, their economic
fundamentals should continue to improve. As always, we will continue to monitor
economic happenings and try to position the portfolio to take advantage of the
many opportunities in the currency markets around the world.

GRAPHIC MATERIAL 7 OMITTED - SEE APPENDIX AT END OF DOCUMENT

Although the fund's Statement of Investments on page 36 of this report indicates
that the fund held 66.1% of its portfolio investments in U.S. dollar-denominated
assets on October 31, 1996, its net exposure to the U.S. dollar on that date was
only 15.4%. 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 44) 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 cumulative total
return of +5.56% for the one-year period ended October 31, 1996. Cumulative
total return represents 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 by $0.54, from
$11.56 on October 31, 1995, to $11.02 on October 31, 1996. During this same
period, shareholders received distributions totaling $1.12 per share, of which
$1.08 represented dividends from net investment income, 1.0 cent ($0.01)
represented capital gains and 3.0 cents ($0.03) represented return of capital.
During the year, the fund recognized net foreign currency losses due to
fluctuations in the value of its foreign currency denominated securities and
foreign currency holdings. Under the Internal Revenue Code, these losses reduce
the fund's regular investment income available for distribution to shareholders
causing a portion of the total distributions to be characterized as a return of
capital. In general, return-of-capital distributions are not taxable; rather,
they reduce the cost basis of your shares in the fund, and affect the
computation of a capital gain or loss when you sell your shares. For more
information, please consult your personal tax advisor, or refer to IRS
Publication 550 (Investment Income and Expenses).

Based on the maximum offering price of $11.37 on October 31, 1996, and an
annualization of October's monthly dividend of 4.4 cents ($0.044) per share, the
fund's distribution rate was 4.64%. 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.

The graph on page 28 compares the performance of the fund since inception with
the performance of the unmanaged Salomon Brothers World Money Market Index,
which provides an indication of the performance of the U.S. dollar and
Eurocurrency short-term sectors. It is important to note that 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.

GRAPHIC MATERIAL 8 OMITTED - SEE APPENDIX AT END OF DOCUMENT

FRANKLIN TEMPLETON HIGH INCOME CURRENCY FUND

PERIODS ENDED OCTOBER 31, 1996
SINCE
INCEPTION
ONE-YEAR FIVE-YEAR (11/17/89)

Cumulative Total Return1 5.56% 30.40% 65.95%
Average Annual Total Return2 2.46% 4.80% 7.08%

Distribution Rate3 4.64%
30-Day Standardized Yield4 4.49%

10/31/92 10/31/93 10/31/94 10/31/95 10/31/96
One-Year Total Return5 8.20% -4.82% 9.97% 8.90% 5.56%

1. Cumulative total return represents the change in value of an investment over
the indicated periods and does not include sales charges.

2. Average annual total return represents the average annual change in the value
of an investment over the indicated periods and includes the maximum 3.0%
initial sales charge.

3. Distribution rate is based on the maximum offering price of $11.36 per share
on October 31, 1996, and an annualization of the most recent monthly dividend of
4.4 cents ($0.044) per share.

4. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio during the 30 days ended October 31, 1996.

5. One-year total return represents the change in value of an investment over
the one-year periods ended on the specified dates and does not include the
initial sales charge.

The fund's manager has agreed in advance to reduce its management fees, which
reduces operating expenses and increases distribution rate, yield and total
return to shareholders. Without this fee reduction, the fund's distribution rate
and total return would have been lower, and yield for the period would have been
1.29%. The fee reduction may be discontinued at any time, upon notice to the
fund's Board of Trustees.

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.

FRANKLIN TEMPLETON GLOBAL TRUST

STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, OCTOBER 31, 1996

<TABLE>
<CAPTION>
Face Value
Country* Amount Franklin Templeton German Government Bond Fund (Note 1)
Long Term Investments 95.3%
Eurobonds 29.3%
<S> <C> <C>
DD 900,000 European Economic Community, 6.50%, 3/10/00 ............................ $ 630,541
DD 500,000 European Investment Bank, 7.75%, 1/26/05 ............................... 365,991
DD 850,000 Government of Australia, 7.25%, 5/03/07 ................................ 605,338
DD 925,000 Interamerican Development Bank, 6.75%, 4/29/03 ......................... 645,306
DD 600,000 International Bank Recon/Dev, 6.125%, 9/27/02 .......................... 412,829
DD 800,000 Japan Finance Corp. Muni Enterprises, 7.75%, 10/28/04 .................. 586,642
DD 775,000 Kingdom of Denmark, 6.125%, 4/15/98 .................................... 530,678
DD 650,000 KFW International Finance, 7.75%, 10/06/04 ............................. 475,144
DD 800,000 LKB Baden-Wuerttemburg Finance NV, 6.50%, 9/15/08 ...................... 535,377
DD 500,000 Osterreich Kontrollbank, 7.00%, 8/08/05 ................................ 349,805
-------------
Eurobonds (Cost $4,905,365) ...................................... 5,137,651
-------------
German Bonds 66.0%
DD 540,000 Allgemeine Hypotheken Bank AG, 6.00%, 9/16/02 .......................... 365,732
DD 530,000 Bayerische Hypotheken-Und Wechselbank AG, 6.00%, 9/13/20 ............... 365,366
DD 750,000 Bundesland Baden-Wuerttemberg, 7.50%, 10/22/04 ......................... 542,545
DD 1,000,000 Deutsche Bundespost, 7.50%, 12/02/02 ................................... 726,300
DD 900,000 Deutsche Hypothekenbank Franfurt AG, 6.00%, 3/22/02 .................... 613,239
Federal Republic of Germany:
DD 685,000 9.00%, 12/01/00 ...................................................... 521,545
DD 1,170,000 7.375%, 1/03/05 ...................................................... 845,133
DD 755,000 6.875%, 5/12/05 ...................................................... 528,854
DD 1,175,000 6.25%, 1/04/24 ....................................................... 721,208
Freie Hansestadt Bremen:
DD 800,000 6.25%, 2/13/97 ....................................................... 532,470
DD 500,000 8.50%, 4/17/98 ....................................................... 353,439
DD 900,000 Freistaat Bayern, 6.00%, 3/20/97 ....................................... 600,813
DD 800,000 Land Hessen, 6.00%, 6/18/97 ............................................ 536,698
DD 150,000 Land Niedersachsen, 7.50%, 1/20/05 ..................................... 108,757
Land Sachsen Anhalt:
DD 800,000 7.50%, 10/28/04 ...................................................... 578,714
DD 550,000 7.25%, 4/20/05 ....................................................... 389,509
DD 890,000 Landwirt Schaftliche Rentenbank, 7.50%, 10/15/97 ....................... 609,424
DD 750,000 Nordrhein-Westfalen, 6.125%, 4/17/97 ................................... 501,420
DD 530,000 Rheinhyp Rheinische Hypothekenbank AG, 5.50%, 12/20/99 ................. 361,725
DD 900,000 Sueddeutsche Bodencreditbank AG, 6.00%, 11/06/01 ....................... 615,558
DD 290,000 Treuhandanstalt, 7.375%, 12/02/02 ...................................... 210,550
German Bonds (cont.)
DD 530,000 Westfaelische Hypothekenbank AG, 5.50%, 9/13/99 ........................ $ 362,530
DD 900,000 Wurttembergische Hypothekenbank, 5.50%, 1/22/02 ........................ 601,705
-------------
German Bonds (Cost $11,439,134) .................................. 11,593,234
-------------
Total Long Term Investments (Cost $16,344,499) ................... 16,730,885
-------------
Short Term Investments (Cost $345,947) 2.0%
US 346,000 Federal Home Loan Mortgage Corp., 5.53%, 11/01/96 ...................... 346,000
-------------
Total Investments (Cost $16,690,446) 97.3% .................. 17,076,885
Other Assets and Liabilities, Net 2.7% ...................... 474,928
-------------
Net Assets 100.0% .......................................... $17,551,813
=============

At October 31, 1996, the net unrealized appreciation
based on the cost of investments for income tax
purposes of $16,690,446 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ............................ $ 598,695
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value ............................ (212,256)
-------------
Net unrealized appreciation .......................................... $ 386,439
=============
</TABLE>

Securities traded in currency of country indicated. See page 37 for country
legend.

The accompanying notes are an integral part of these financial statements.

FRANKLIN TEMPLETON GLOBAL TRUST

STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, OCTOBER 31, 1996

Face Value
Country* Amount Franklin Templeton Global Currency Fund (Note 1)

Long Term Investments 5.4%
Foreign Government Securities - Floating Rate Notes
DD 4,150,000 Government of Spain, floating rate note, 3.688%, 6/29/02
<S> <C>
(Cost $2,728,125) ................................................... $ 2,743,820
-------------
aShort Term Investments 94.2%
Commercial Paper 13.1%
US 3,325,000 Abbott Laboratories, 5.21%, 11/13/96 ................................. 3,318,738
US 1,030,000 Ciesco LP, 5.25%, 11/15/96 ........................................... 1,027,762
US 2,300,000 General Electric Capital Corp., 5.24%, 12/11/96 ...................... 2,285,921
-------------
Total Commercial Paper (Cost $6,632,765) ....................... 6,632,421
-------------
Corporate Bonds 3.0%
DD 2,300,000 General Electric Capital Corp., 8.25%, 1/29/97 (Cost $1,533,837) ..... 1,536,170
-------------
Foreign Government Securities - Floating Rate Notes 2.6%
DD 2,000,000 bGovernment of Belgium, floating rate note, semi-annual calls, 4.063%,
3/15/00 (Cost $1,282,288) ........................................... 1,319,614
-------------
Government Securities 27.9%
DD 1,750,000 bEuropean Investment Bank, floating rate note, annual calls, 3.63%,
3/25/98 ............................................................. 1,156,108
DD 2,075,000 Federal Republic of Germany, 7.125%, 11/21/96 ........................ 1,373,281
DD 3,000,000 German Treasury Bill, 3.16%, 1/17/97 ................................. 1,968,842
US 2,020,000 Government of Finland, 7.25%, 4/28/97 ................................ 2,033,888
US 7,692,000 U.S. Treasury Bills, 5.07% - 5.16%, with maturities to 1/09/97 ....... 7,640,342
-------------
Total Government Securities (Cost $14,200,403) ................. 14,172,461
-------------
U.S. Government Agencies 47.6%
US 5,875,000 Federal Farm Credit Bank, 5.16% - 5.24%, with maturities to 1/17/97 .. 5,852,721
US 11,010,000 Federal Home Loan Bank, 5.16% - 5.50%, with maturities to 3/28/97 .... 10,972,819
US 2,446,000 Federal Home Loan Mortgage Corp., 5.18% - 5.53%, with maturities to
12/24/96 ............................................................ 2,435,875
US 4,925,000 Federal National Mortgage Assoc., 5.18% - 5.65%, with maturities to
10/07/97 ............................................................ 4,919,038
-------------
Total U.S. Government Agencies (Cost $24,176,397) .............. 24,180,453
-------------
Total Short Term Investments (Cost $47,825,690) ................ 47,841,119
-------------
Total Investments (Cost $50,553,815) 99.6% ................ 50,584,939
Other Assets and Liabilities, Net .4% ..................... 188,466
-------------
Net Assets 100.0% ......................................... $50,773,405
=============

At October 31, 1996, the net unrealized appreciation
based on the cost of investments for income tax
purposes of $50,553,815 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost .......................... $ 78,267
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value .......................... (47,143)
-------------
Net unrealized appreciation ........................................ $ 31,124
=============
</TABLE>

*Securities traded in currency of country indicated. See page 37 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.

FRANKLIN TEMPLETON GLOBAL TRUST

STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, OCTOBER 31, 1996

Face Value
Country* Amount Franklin Templeton Hard Currency Fund (Note 1)

Long Term Investments 5.0%
Corporate Bonds - Floating Rate Notes 1.5%
<S> <C> <C>
DD 1,650,000 European Investment Bank, floating rate note, 2.725%, 10/23/98 ..... $ 1,087,319
JP 100,000,000 Inter - American Development Bank, floating rate note, 0.648%,
6/19/98 ........................................................... 880,515
-------------
Total Corporate Bonds (cost $2,086,103)....................... 1,967,834
-------------
Foreign Government Securities - Floating Rate Notes 3.4%
DD 4,600,000 Government of Belgium, floating rate note, 3.03%, 3/24/00 .......... 3,035,113
JP 135,000,000 Government of Italy, Tranch 3, floating rate note, 0.563%, 7/26/99 . 1,191,839
-------------
Total Foreign Government Securities (cost $4,432,966) ........ 4,226,952
-------------
Government Securities .1%
US 25,000 U.S. Treasury Note, 6.50%, 8/15/97 (Cost $25,605) .................. 25,195
-------------
Total Long Term Investments (Cost $6,544,674) ................ 6,219,981
-------------
aShort Term Investments 107.7%
Government Securities 17.4%
DD 2,600,000 Federal Republic of Germany, 7.125%, 11/21/96 ...................... 1,720,737
DD 10,100,000 Federal Republic of Germany, Bundesobl Series 97, 5.75%, 8/20/97 ... 6,800,502
DD 12,000,000 German Treasury Bill, 3.16%, 1/17/97 ............................... 7,875,369
US 3,070,000 Government of Finland, 7.25%, 4/28/97 .............................. 3,091,106
US 2,291,000 U.S. Treasury Bill, 5.055%, 2/12/96 ................................ 2,277,918
-------------
Total Government Securities (Cost $21,935,550) ............... 21,765,632
-------------
Commerical Paper 46.8%
CH 7,000,000 Canadian Wheat Board, 1.25%, 11/01/96 .............................. 5,543,676
US 1,740,000 Ciesco, 5.25%, 11/15/96 ............................................ 1,736,219
US 4,500,000 Commonwealth Bank of Australia, 5.40%, 1/06/97 ..................... 4,455,326
US 3,000,000 General Electric Capital Corp., 5.24%, 12/11/96 .................... 2,981,636
DD 1,500,000 General Electric Capital Corp., 8.25%, 1/29/97 ..................... 1,001,850
CH 7,000,000 Halifax Building Society Ltd., 1.60%, 12/02/96 ..................... 5,535,374
US 4,675,000 Hewlett Packard Co., 5.21%, 11/06/96 ............................... 4,670,936
US 5,135,000 Merrill Lynch & Co., Inc., 5.32%, 1/06/96 .......................... 5,130,537
CH 7,000,000 Pepsico Inc., 1.29%, 11/01/96 ...................................... 5,543,676
CH 7,000,000 Pepsico Inc., 1.61%, 12/02/96 ...................................... 5,535,398
CH 7,000,000 Prudential Funding Corp., 1.27%, 11/01/96 .......................... 5,543,676
CH 7,000,000 Prudential, 1.59%, 12/02/96 ........................................ 5,535,373
US 3,250,000 Raytheon Co., 5.23%, 11/27/96 ...................................... 3,237,289
US 1,800,000 Toyota Motor Credit Corp., 5.25%, 12/17/96 ......................... 1,787,369
-------------
Total Commercial Paper (Cost $58,491,542) .................... 58,238,335
-------------
U.S. Government Agencies 43.5%
US 3,720,000 Federal Farm Credit Bank, 5.16% - 5.22% with maturities to 1/08/97 . $ 3,701,695
US 25,280,000 Federal Home Loan Bank, 5.16% - 5.33% with maturities to 3/25/97 ... 25,182,982
US 11,015,000 Federal Home Loan Mortgage Corp., 5.18% - 5.20% with maturities to
12/24/96 .......................................................... 10,964,340
US 14,500,000 Federal National Mortgage Assn., 5.17% - 5.18% with maturities to
10/07/97........................................................... 14,473,677
-------------
Total U.S. Government Agencies (Cost $54,313,442) ............ 54,322,694
-------------
Total Short Term Investments (Cost $134,740,534).............. 134,326,661
-------------
Total Investments (Cost $141,285,208) 112.7% ............ 140,546,642
Other Assets and Liabilities, Net (12.7)% ............... (15,880,340)
-------------
Net Assets 100.0% ....................................... $124,666,302
=============

At October 31, 1996, the net unrealized appreciation
based on the cost of investments for income tax
purposes of $141,285,208 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ........................ $ 11,537
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value ........................ (750,103)
-------------
Net unrealized depreciation ...................................... $ (738,566)
=============
</TABLE>

*Securities traded in currency of country indicated. See page 37 for country
legend.

FRANKLIN TEMPLETON GLOBAL TRUST

STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, OCTOBER 31, 1996

Face Value
Country* Amount Franklin Templeton High Income Currency Fund (Note 1)

Long Term Investment 7.4%
Foreign Government Securities - Floating Rate Notes
<S> <C> <C>
UK 460,000 United Kingdom, floating rate note, 5.57%, 3/11/99 (Cost $716,135) ... $ 748,447
-------------
aShort Term Investments 91.9%
Time Deposit 2.8%
IT 426,676,839 JP Morgan & Co. Inc., 7.70%, 11/04/96 (Cost $280,570) ................ 281,375
-------------
Commerical Paper 10.8%
US 150,000 Ciesco LP, 5.25%, 11/15/96 ........................................... 149,674
US 500,000 General Electric Capital Corp., 5.24%, 12/11/96 ...................... 496,939
US 450,000 Raytheon Co., 5.25%, 11/27/96 ........................................ 448,240
-------------
Total Commerical Paper (Cost $1,094,916) ....................... 1,094,853
-------------
Government Securities 25.0%
CA 690,000 Canada Treasury Bill, 3.93%, 10/02/97 ................................ 498,966
US 200,000 Finland Government, 7.25%, 4/28/97.................................... 201,375
ES 65,000,000 Government of Spain, 6.45%, 4/11/97 .................................. 494,141
IT 885,000,000 Italy Treasury Bill, 7.69%, 11/29/96 ................................. 580,002
SE 3,000,000 Sweden Kingdom, 4.58%, 1/15/97........................................ 452,162
SE 2,000,000 Sweden Treasury Bill, 8.16%, 11/20/96 ................................ 303,598
-------------
Total Government Securities (Cost $2,490,549) .................. 2,530,244
-------------
U.S. Government Agencies 53.3%
US 1,000,000 Federal Farm Credit Bank, 5.16% - 5.18%, with maturities to 11/20/96 . 998,233
US 1,165,000 Federal Home Loan Bank, 5.21% - 5.30% with maturities to 3/28/97 ..... 1,158,023
US 1,494,000 Federal Home Loan Mortgage Corp., 5.16% - 5.25%, with maturities to
01/10/97 ............................................................ 1,488,376
US 1,750,000 Federal National Mortgage Assn., 5.22% - 5.64% with maturities to
11/26/96 ............................................................ 1,748,092
-------------
Total U.S. Government Agencies (Cost $5,391,993) ............... 5,392,724
-------------
Total Short Term Investments (Cost $9,258,028) ................. 9,299,196
-------------
Total Investments (Cost $9,974,163) 99.3% ................. 10,047,643
Other Assets and Liabilities, Net .7% ..................... 65,618
-------------
Net Assets 100.0% ......................................... $10,113,261
=============

At October 31, 1996, the net unrealized appreciation
based on the cost of investments for income tax
purposes of $9,974,163 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost .......................... $ 73,689
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value .......................... (209)
-------------
Net unrealized appreciation ........................................ $ 73,480
=============

</TABLE>

COUNTRY LEGEND:
CA - Canada
CH - Switzerland
DD - Germany
ES - Spain
IT - Italy
JP - Japan
SE - Sweden
UK - United Kingdom
US - United States

*Securities traded in currency of country indicated. See page 37 for country
legend.

The accompanying notes are an integral part of these financial statements.

FRANKLIN TEMPLETON GLOBAL TRUST

FINANCIAL STATEMENTS

STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
<TABLE>
<CAPTION>

Franklin
Templeton Franklin Franklin Franklin
German Templeton Templeton Templeton
Government Global Hard High Income
Bond Fund Currency FundCurrency FundCurrency Fund
-------- -------- --------- --------
Assets:
Investment in Securities:
<S> <C> <C> <C> <C>
At identified cost ........................................ $16,690,446 $50,553,815 $141,285,208 $ 9,974,163
======== ======== ========= ========
At value .................................................. 17,076,885 50,584,939 140,546,642 10,047,643
Cash ....................................................... 741 583 913 583
Receivables:
Interest .................................................. 536,189 348,762 478,700 38,208
Capital shares sold ....................................... 8,564 2,568 1,127,760 50,659
Net unrealized gain on forward foreign currency contracts (Note 2) -- -- -- 36,809
Unamortized organization cost (Note 3) ..................... 8,935 -- -- --
-------- -------- --------- --------
Total assets .......................................... 17,631,314 50,936,852 142,154,015 10,173,902
-------- -------- --------- --------
Liabilities:
Payables:
Investment securities purchased ........................... -- -- 16,754,100 --
Capital shares repurchased ................................ 31,325 58,580 486,410 9,638
Management fees ........................................... 8,296 28,006 67,052 5,467
Distribution fees ......................................... 9,778 30,812 94,259 6,088
Shareholder servicing costs ............................... 1,610 4,182 7,115 2,511
Accrued expenses and other liabilities ..................... 28,492 38,704 26,793 36,937
Net unrealized loss on forward foreign currency contracts (Note 2) -- 3,163 51,984 --
-------- -------- --------- --------
Total liabilities ..................................... 79,501 163,447 17,487,713 60,641
-------- -------- --------- --------
Net assets, at value ........................................ $17,551,813 $50,773,405 $124,666,302 $10,113,261
======== ======== ========= ========
Net assets consist of:
Undistributed net investment income (loss) ................. $ -- $ 12,235 $ 158,515 $ (41,061)
Unrealized appreciation (depreciation) on investments and translation
of assets and liabilities denominated in foreign currencies 382,624 28,839 (788,305) 110,548
Accumulated net realized loss from investments and foreign
currency transactions ...................................... -- (285,576) (1,461,368) (22,408)
Capital shares ............................................. 17,169,189 51,017,907 126,757,460 10,066,182
-------- -------- --------- --------
Net assets, at value ........................................ $17,551,813 $50,773,405 $124,666,302 $10,113,261
======== ======== ========= ========
Shares outstanding .......................................... 1,333,917 3,967,384 10,707,928 917,518
======== ======== ========= ========
Net asset value per share ................................... $13.16 $12.80 $11.64 $11.02
======== ======== ========= ========
Maximum offering price ...................................... $13.57 $13.20 $12.00 $11.36
======== ======== ========= ========

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 ($17,551,813/1,333,917)$13.16
========
Maximum offering price (100/97 of $13.16) ................... $13.57
========
</TABLE>

FRANKLIN TEMPLETON GLOBAL TRUST

FINANCIAL STATEMENTS (CONT.)

STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1996
<TABLE>
<CAPTION>

Franklin
Templeton Franklin
German Franklin Franklin Templeton
Government Templeton GlobalTempleton Hard High Income
Bond Fund Currency Fund Currency Fund Currency Fund
--------- ---------- ---------- --------
Investment income:
<S> <C> <C> <C> <C>
Interest ................................................. $1,367,437 $2,881,951 $ 6,984,761 $615,137
--------- ---------- ---------- --------
Expenses:
Management fees (Note 7) ................................. 117,798 351,768 811,115 66,069
Distribution fees (Note 7) ............................... 41,513 115,252 370,787 20,191
Shareholder servicing costs .............................. 23,900 36,500 92,000 3,500
Custody fees ............................................. 1,000 1,000 12,750 9,000
Professional fees ........................................ 9,350 9,150 9,000 8,300
Registration fees and insurance .......................... 22,300 4,450 37,200 9,125
Reports to shareholders .................................. 8,350 14,457 28,000 7,100
Amortization of organization cost (Note 3) ............... 7,687 -- -- --
Trustees' fees and expenses .............................. 5,300 6,900 8,000 7,000
Other .................................................... 241 850 3,171 570
Payments from Manager (Note 7) ........................... -- -- -- (4,273)
--------- ---------- ---------- --------
Total expenses ...................................... 237,439 540,327 1,372,023 126,582
--------- ---------- ---------- --------
Net investment income ............................... 1,129,998 2,341,624 5,612,738 488,555
--------- ---------- ---------- --------
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments ............................................. 88,794 (33,507) (3,661,839) (197,152)
Foreign currency transactions ........................... (173,763) (823,568) (9,970,390) 185,152
--------- ---------- ---------- --------
(84,969) (857,075) (13,632,229) (12,000)
--------- ---------- ---------- --------
Net unrealized appreciation (depreciation) on:
Investments ............................................. (1,309,890) (773,711) (140,570) 59,398
Foreign currency translation of other assets and
liabilities .............................................. (9,555) (140,940) 163,299 (342)
--------- ---------- ---------- --------
(1,319,445) (914,651) 22,729 59,056
--------- ---------- ---------- --------
Net realized and unrealized gain (loss) ................... (1,404,414) (1,771,726) (13,609,500) 47,056
--------- ---------- ---------- --------
Net increase (decrease) in net assets resulting from
operations ............................................... $ (274,416) $ 569,898 $ (7,996,762) $535,611
========= ========== ========== ========
</TABLE>

The accompanying notes are an integral part of these financial statements.

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 Year ended Year ended Year ended
October 31, 1996 October 31, 1995 October 31,1996 October 31, 1995
------------ ------------ ------------- -------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C>
Net investment income................................ $ 1,129,998 $ 920,943 $ 2,341,624 $ 3,091,916
Net realized gain (loss) from investments and foreign
currency transactions ................................ (84,969) 713,330 (857,075) 2,083,056
Net unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies .................... (1,319,445) 1,059,514 (914,651) (2,010,845)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting
from operations ...................................... (274,416) 2,693,787 569,898 3,164,127
Distributions to shareholders from:
Undistributed net investment income .................. (1,645,317) (1,355,870) (3,012,672) (5,196,532)
Net realized gains ................................... (102,554) -- -- --
Tax return of capital................................. (102,139) -- (1,330,318) --
Increase (decrease) in net assets from capital share
transactions (Note 4) ................................ (4,437,052) 9,539,172 (5,395,335) 5,876,339
---------- ---------- ---------- ----------
Net increase (decrease) in net assets ........... (6,561,478) 10,877,089 (9,168,427) 3,843,934
Net assets:
Beginning of year .................................... 24,113,291 13,236,202 59,941,832 56,097,898
---------- ---------- ---------- ----------
End of year .......................................... $17,551,813 $24,113,291 $50,773,405 $59,941,832
========== ========== ========== ==========
Undistributed net investment income included in net assets:
Beginning of year ................................... $ 660,762 $ 56,449 $ 1,463,213 $ 1,263,410
========== ========== ========== ==========
End of year ......................................... $-- $ 660,762 $ 12,235 $ 1,463,213
========== ========== ========== ==========
</TABLE>

FRANKLIN TEMPLETON GLOBAL TRUST

FINANCIAL STATEMENTS (CONT.)

STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
<TABLE>
<CAPTION>

Franklin Templeton Franklin Templeton
Hard Currency Fund High Income Currency Fund
--------------------- --------------------
Year ended Year ended Year ended Year ended
October 31, 1996 October 31, 1995 October 31,1996 October 31, 1995
------------ ------------ ------------- -------------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C>
Net investment income .............................. $ 5,612,738 $ 4,578,175 $ 488,555 $ 709,372
Net realized gain (loss) from investments and foreign
currency transactions ............................... (13,632,229) 1,212,480 (12,000) 590,112
Net unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies ................... 22,729 (1,732,815) 59,056 (320,372)
---------- ---------- --------- ----------
Net increase (decrease) in net assets resulting
from operations ..................................... (7,996,762) 4,057,840 535,611 979,112
Distributions to shareholders from:
Undistributed net investment income ................. (596,892) (9,027,253) (1,005,818) (1,147,936)
Net realized gains................................... -- -- (12,939) --
Tax return of capital................................ (6,321,432) -- (24,976) --
Increase (decrease) in net assets from capital share
transactions (Note 4) ............................... 7,492,381 75,829,921 (280,803) (5,807,267)
---------- ---------- --------- ----------
Net increase (decrease) in net assets .......... (7,422,705) 70,860,508 (788,925) (5,976,091)
Net assets:
Beginning of year ................................... 132,089,007 61,228,499 10,902,186 16,878,277
---------- ---------- --------- ----------
End of year ......................................... $124,666,302 $132,089,007 $10,113,261 $10,902,186
========== ========== ========= ==========
Undistributed net investment income (loss) included in net assets:
Beginning of year .................................. $ 1,248,928 $ (180,084) $ 465,794 $ 18,961
========== ========== ========= ==========
End of year ........................................ $ 158,515 $ 1,248,928 $ (41,061) $ 465,794
========== ========== ========= ==========
</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.

The German Bond Fund seeks long-term total return through investment in a
managed portfolio of German government bonds. The 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. The 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. The High Income 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.

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:

Each Fund 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 and excise taxes. 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.

D. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS:

Distributions to shareholders are recorded on the ex-dividend date. Interest
income and estimated expenses are accrued daily. Bond discount if any, is
amortized as required 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.

G. REPURCHASE AGREEMENTS:

The Funds, through its custodian, receives delivery of the underlying
securities, whose market is required to be at least 102% of the resale price at
the time of purchase. The Funds investment advisor, Franklin Advisers, Inc., is
responsible for determining that the value of these underlying securities
remains at least equal to the resale price.

H. ACCOUNTING ESTIMATES:

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.

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 payments 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 foreign
currency contract is recorded as a realized gain or loss from foreign currency
transactions.

The Funds designated 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.

As of October 31, 1996, the Global Currency Fund had the following forward
foreign currency contracts outstanding:

<TABLE>
<CAPTION>
In Unrealized
Contracts to Buy Exchange for Settlement Date Gain (Loss)
-------------------------------- --------- ---------- --------
<S> <C> <C> <C>
3,648,000 New Zealand dollars......... U.S. $ 2,513,472 11/15/96 U.S. $63,008
19,500,000 Australian dollars.......... 15,415,140 11/18/96 26,539
329,100,000 Japanese yen................ 2,946,285 11/21/96 (45,625)
8,250,000 Deutschemark................ 5,441,737 11/25/96 16,929
5,286,000 Deutschemark................ 3,491,413 11/29/96 2,638
--------- --------
U.S. $29,808,047 63,489
--------- --------
Contracts to Sell
--------------------------------
4,500,000 Deutschemark................ U.S. $ 2,952,078 11/12/96 (22,979)
2,300,000 Deutschemark................ 1,497,640 11/18/96 (23,510)
1,200,000 Deutschemark................ 785,289 11/22/96 (8,551)
2,251,000 Deutschemark................ 1,482,384 11/25/96 (7,005)
1,800,000 Deutschemark................ 1,186,670 11/29/96 (4,607)
--------- --------
U.S. $ 7,904,061 (66,652)
--------- --------
Net unrealized depreciation..................................................... U.S. $ (3,163)
========

As of October 31, 1996, the Hard Currency Fund had the following forward foreign
currency contracts outstanding:

In Unrealized
Contracts to Buy Exchange for Settlement Date Gain (Loss)
-------------------------------- --------- ---------- --------
1,535,200,000 Japanese yen............... U.S. $13,830,630 11/12/96 U.S. $(315,999)
12700,000 Deutschemark............... 8,320,231 11/15/96 77,602
5,2440,000 New Zealand dollars........ 3,613,116 11/15/96 90,575
440,000,000 Japanese yen............... 3,939,123 11/21/96 (61,000)
18,189,000 Swiss francs............... 14,390,032 11/21/96 45,465
46,500,000 Deutschemark............... 30,671,609 11/25/96 95,416
3,820,000 New Zealand dollars........ 2,677,820 11/29/96 15,957
--------- --------
Net unrealized depreciation................ U.S. $77,442,561 U.S. $ (51,984)
========= ========
As of October 31, 1996, the High Income Fund had the following forward foreign
currency contracts outstanding:
In Unrealized
Contracts to Buy Exchange for Settlement Date Gain (Loss)
-------------------------------- --------- ---------- --------
730,000 Deutschemark............... U.S. $ 482,166 11/09/96 U.S. $ 364
1,040,000 French franc............... 201,500 11/15/96 2,120
230,000 British pound.............. 359,789 11/15/96 14,459
62,500,000 Spanish peseta............. 484,609 11/15/96 4,891
2,600,000 Australian dollar.......... 2,055,352 11/18/96 3,539
1,410,000 Canadian dollar............ 1,044,444 11/21/96 8,514
1,100,000 New Zealand dollar......... 771,100 11/29/96 4,595
--------- --------
U.S. $ 5,398,960 38,482
--------- --------
Contracts to Sell
--------------------------------
115,000 Deutschemark............... U.S. $ 75,442 11/12/96 (587)
60,000 Deutschemark............... 39,069 11/18/96 (613)
25,000 Deutschemark............... 16,360 11/22/96 (178)
58,000 Deutschemark............... 38,196 11/25/96 (180)
45,000 Deutschemark............... 29,667 11/29/96 (115)
--------- --------
U.S. $ 198,734 (1,673)
--------- --------
Net unrealized appreciation..................................................... U.S. $ 36,809
========

</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.

4. TRUST SHARES

At October 31, 1996 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, 1996 and October 31, 1995 were as follows:
<TABLE>
<CAPTION>

Franklin Templeton German Franklin Templeton
Government Bond Fund Global Currency Fund
-------------------- ------------------
Year Ended October 31, 1996 Shares Amount Shares Amount
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Shares sold ............................................... 633,495 $ 8,633,416 534,790 $ 6,917,329
Shares issued in reinvestment of distributions ............ 109,008 1,470,996 282,686 3,656,845
Shares redeemed ........................................... (1,093,633) (14,541,464)(1,234,150) (15,969,509)
-------- ---------- -------- ----------
Net decrease ......................................... (351,130) $ (4,437,052) (416,674) $ (5,395,335)
======== ========== ======== ==========
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
======== ========== ======== ==========

</TABLE>

<TABLE>
<CAPTION>
Franklin Templeton
Franklin Templeton High Income
Hard Currency Currency Fund
------------------- -----------------
Year Ended October 31, 1996 Shares Amount Shares Amount
-------- ---------- ------- ---------
<S> <C> <C> <C> <C>
Shares sold ................................................. 7,838,577 $ 95,388,807 246,388 $2,688,736
Shares issued in reinvestment of distributions .............. 440,761 5,393,631 68,646 742,520
Shares redeemed ............................................. (7,661,154) (93,290,057) (340,903) (3,712,059)
-------- ---------- ------- ---------
Net increase (decrease) ................................ 618,184 $ 7,492,381 (25,869) $ (280,803)
======== ========== ======= =========
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)
======== ========== ======= =========
</TABLE>

5. DISTRIBUTIONS AND CAPITAL LOSS CARRYOVERS

At October 31, 1996, for tax purposes, the Funds had capital loss carryovers as
follows:
<TABLE>
<CAPTION>

Franklin Templeton Franklin Templeton
German Government Franklin Templeton Franklin Templeton High Income
Bond Fund Global Currency Fund Hard Currency Fund Currency Fund
------------- -------------- ------------- ------------
Capital loss carryovers expiring in:
<S> <C> <C> <C>
2001.................................. -- $ 35,182 $ 301,642 --
2002.................................. -- -- 271 --
2003.................................. -- 173,253 112,254 --
2004.................................. -- 77,143 1,047,201 $22,408
------------- -------------- ------------- ------------
-- $285,578 $1,461,368 $22,408
============= ============== ============= ============
</TABLE>

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, 1996, were as follows:
<TABLE>
<CAPTION>

Franklin Templeton Franklin Templeton
German Government Franklin Templeton Franklin Templeton High Income
Bond Fund Global Currency FundHard Currency Fund Currency Fund
------------- -------------- ------------- ------------
<S> <C> <C> <C>
Purchases.............................. $11,349,298 -- $25,605 --
============= ============== ============= ============
Sales.................................. $13,963,170 -- -- --
============= ============== ============= ============
</TABLE>

7. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

Under the terms of a management agreement, Franklin Advisers, Inc. (Advisers),
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 Bond Fund.
Under a subadvisory agreement, Templeton Investment Counsel, Inc. (TICI), an
indirect subsidiary of Templeton Worldwide, Inc. (Worldwide), which is a direct,
wholly-owned subsidiary of Franklin Resources, Inc. (Resources) receives from
the Advisers 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, 1996, the Advisers agreed
in advance to reduce its managements fees as indicated below:
<TABLE>
<CAPTION>

Franklin Templeton Franklin Templeton
German Government Franklin Templeton Franklin Templeton High Income
Bond Fund Global Currency FundHard Currency Fund Currency Fund
------------- -------------- ------------- ------------
<S> <C>
Fee reduction.......................... -- -- -- $4,273
============= ============== ============= ============
</TABLE>

Pursuant to a shareholder servicing agreement with Franklin Templeton Investor
Services, Inc. (Investor Services), the Trust pays costs on a per shareholder
account basis. Such costs incurred for the year ended October 31, 1996
aggregated $155,900.

Under the terms of a distribution plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940 (the Plans), the Global Currency Fund, the Hard Currency
Fund, and the High Income Fund will reimburse Franklin Templeton Distributors,
Inc. (Distributors), 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 the Distributors, in
an 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 under the Plans aggregated $547,743 for the year ended October 31,
1996.

In its capacity as underwriter for the shares of the Trust, Distributors
receives commissions on sales of the Trust's shares. Commissions are deducted
from the gross proceeds received from the sale of the capital stock of the Funds
and as such are not expenses of the Funds. Commissions received by Distributors
and the amounts which were subsequently paid to other dealers for the year ended
October 31, 1996 were as follows:
<TABLE>
<CAPTION>

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>
Total commissions received ............ $94,674 $63,202 $858,684 $22,131
============= ============== ============= ============
Paid to other dealers ................. $83,491 $55,853 $762,018 $19,586
============= ============== ============= ============
</TABLE>

Certain officers and trustees of the Trust are also officers and/or directors of
Distributors, Advisers, Worldwide and Investor Services, all wholly-owned
subsidiaries of Resources.

8. CREDIT RISK

Although each of the Funds has a 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% in debt
securities denominated in German deutschemarks.

The Hard Currency Fund has investments in excess of 10% in debt securities
denominated in German deutschemarks.

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 occurring within
that country.

9. FINANCIAL HIGHLIGHTS

Selected data for each share of beneficial interest oustanding throughout each
period, by Fund are as follows:

Per Share Operating Performance+ Ratios/Supplemental Data
------------------------------------------------- -----------------------
Ratio
Distri- Ratio of of Net
Net Total butions Distri- Distri- Net Net Expenses Investment
Asset Net Net From From Net butions butions Asset Assets to Average Income
Year Value at Ivest- Realized & Invest- Invest- From From Total Value at End Net Assets to Ave- Portfolio
Ended Beginning ment Unrealized ment Ope- ment Capital Return of Distri- at End Total of Year (see rage Net Turnover
October 31of Year Income Gain (Loss)rations Income Gains Capital+++ butions of YearReturn++(in 000's) Note 7) Assets Rate

Franklin Templeton German Government Bond Fund
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
19931,2 $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
19943 12.29 0.41 0.92 1.33 (0.36) -- -- (0.36) 13.26 10.92 13,236 1.04* 6.37* 301.60*
1995 13.26 1.53 0.71 2.24 (1.19) -- -- (1.19) 14.31 18.28 24,113 1.25 5.17 67.77
1996 14.31 0.66 (0.69) (0.03) (1.00) (0.06) (0.06) (1.12) 13.16 (0.14) 17,552 1.10 5.25 57.59
Franklin Templeton Global Currency Fund
19922 14.23 0.80 (0.22) 0.58 (0.80) -- -- (0.80) 14.01 4.29 63,589 1.82 5.77 --
19932 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
19943 13.85 0.25 0.32 0.57 (0.28) -- -- (0.28) 14.14 4.14 56,098 1.04* 3.55* 50.82*
1995 14.14 1.29 (0.49) 0.80 (1.27) -- -- (1.27) 13.67 6.05 59,942 0.99 5.29 46.05
1996 13.67 0.69 (0.54) 0.15 (0.71) -- (0.31) (1.02) 12.80 1.27 50,773 0.99 4.30 --
Franklin Templeton Hard Currency Fund
19922 12.83 0.77 0.28 1.05 (0.76) -- -- (0.76) 13.12 8.40 31,757 1.86 5.85 --
19932 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 --
19943 12.95 0.26 0.99 1.26 (0.25) -- -- (0.25) 13.95 9.74 61,228 1.05* 3.80* 55.91*
1995 13.95 1.84 (1.02) 0.82 (1.68) -- -- (1.68) 13.09 6.68 132,089 1.15 4.68 15.72
1996 13.09 0.57 (1.34) (0.77) (0.06) -- (0.62) (0.68) 11.64 (5.99) 124,666 1.10 4.50 --
Franklin Templeton High Income Currency Fund
19922 12.92 1.09 (0.03) 1.06 (1.08) -- -- (1.08) 12.90 8.51 46,575 1.83 8.38 --
19932 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 --
19943 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*
1995 11.59 1.47 (0.51) 0.96 (0.99) -- -- (0.99) 11.56 8.90 10,902 1.25 5.56 115.05
1996 11.56 0.58 -- 0.58 (1.08) (0.01) (0.03) (1.12) 11.02 5.56 10,113 1.25 4.83 --
</TABLE>

1For the period December 31, 1992 (effective date of registration) to April 30,
1993.

2Financial Highlights for periods ended prior to April 30, 1994 were audited by
other independent auditors whose opinions are not included herein.

9. FINANCIAL HIGHLIGHTS (cont.)

3Six months ended October 31, 1994. Prior to this period, the Funds' fiscal year
end was April 30. +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, and is not annualized. 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. The Advisers reduced its
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

FRANKLIN TEMPLETON GERMAN GOVERNMENT BOND FUNd
19931..................................................... 1.73%*
1994...................................................... 1.83
19943..................................................... 1.77*
1995...................................................... 1.29
FRANKLIN TEMPLETON GLOBAL CURRENCY FUND
1994...................................................... 1.61
19943..................................................... 1.12*
FRANKLIN TEMPLETON HARD CURRENCY FUND
1994...................................................... 1.71
19943..................................................... 1.28*
FRANKLIN TEMPLETON HIGH INCOME CURRENCY FUND
1994...................................................... 1.82
19943..................................................... 1.45*
1995...................................................... 1.45
1996...................................................... 1.29

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
funds comprising the Franklin Templeton Global Trust, including each Fund's
statement of investments in securities and net assets, as of October 31, 1996,
and the related statements of operations for the year then ended, the statement
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods ended April 30, 1994 and
thereafter for the periods presented. 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 statements and financial
highlights.

We conducted our audits 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, 1996 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 audits provide 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
funds comprising the Franklin Templeton Global Trust as of October 31, 1996, and
the results of their operations for the year then ended, the changes in their
net assets for each of the two years in the period then ended and their
financial highlights for each of the periods ended April 30, 1994 and thereafter
for the periods presented, in conformity with generally accepted accounting
principles.

COOPERS & LYBRAND L.L.P.

Fort Lauderdale, Florida
November 27, 1996

Franklin Templeton Global Trust Annual Report October 31, 1996.

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 format the asset allocation by asset class of the
portfolio's securities on October 31, 1996, as a percentage of total net assets.

Asset Allocation by Asset Class on October 31, 1996

German State Government Bonds 26.7%
German Federal Government Bonds 23.7%
Foreign (Non-German) Government 23.5%
Euromark Bonds
German Pfandbriefe Bonds 18.7%
German Government Agency Bonds 2.7%
Other Net Assets & Liabilities 4.7%

GRAPHIC (2)

The following line graph hypothetically compares the performance of the fund's
shares with the Salomon Brothers German Government Bond Index, based on a
$100,000 investment from 12/31/92 to 10/31/96.

Period Ending Fund Index

12/31/92 $9,697 $10,000
1/31/93 $9,829 $10,182
2/28/93 $9,816 $10,220
3/31/93 $10,176 $10,509
4/30/93 $10,293 $10,679
5/31/93 $10,302 $10,707
6/30/93 $9,770 $10,085
7/31/93 $9,665 $10,009
8/31/93 $10,195 $10,562
9/30/93 $10,566 $10,938
10/31/93 $10,376 $10,827
11/30/93 $10,275 $10,664
12/31/93 $10,236 $10,672
1/31/94 $10,248 $10,633
2/28/94 $10,209 $10,673
3/31/94 $10,363 $10,925
4/30/94 $10,359 $10,960
5/31/94 $10,413 $10,949
6/30/94 $10,887 $11,296
7/31/94 $10,980 $11,496
8/31/94 $10,980 $11,458
9/30/94 $11,075 $11,557
10/31/94 $11,490 $11,959
11/30/94 $11,136 $11,660
12/31/94 $11,218 $11,738
1/31/95 $11,571 $12,193
2/28/95 $12,127 $12,740
3/31/95 $13,079 $13,900
4/30/95 $13,115 $13,941
5/31/95 $13,122 $13,941
6/30/95 $13,316 $14,098
7/31/95 $13,448 $14,349
8/31/95 $12,802 $13,632
9/30/95 $13,237 $14,238
10/31/95 $13,589 $14,579
11/30/95 $13,446 $14,498
12/31/95 $13,705 $14,781
1/31/96 $13,360 $14,366
2/29/96 $13,330 $14,324
3/31/96 $13,331 $14,351
4/30/96 $13,001 $13,952
5/31/96 $13,011 $14,007
6/30/96 $13,019 $14,066
7/31/96 $13,573 $14,686
8/31/96 $13,599 $14,749
9/30/96 $13,359 $14,515
10/31/96 $13,570 $14,735

GRAPHIC MATERIAL (3)

This chart shows in pie format the asset allocation by currency of the
portfolio's securities on October 31, 1996, as a percentage of total net assets.

Asset Allocation by Currency on October 31, 1996

U.S. Dollar 37.0%
Australian Dollar 30.4%
German Mark 21.9%
Japanese Yen 5.8%
New Zealand Dollar 4.9%

GRAPHIC (4)

The following line graph hypothetically compares the performance of the fund's
shares with the Salomon Brothers World Money Market Index, based on a $100,000
investment from 11/1/86 to 10/31/96.

Period Ending Fund Index

11/1/86 $9,703 $10,000
11/30/86 $10,047 $10,319
12/31/86 $10,302 $10,575
1/31/87 $10,589 $10,984
2/28/87 $10,676 $11,096
3/31/87 $10,971 $11,395
4/30/87 $11,196 $11,588
5/31/87 $10,995 $11,461
6/30/87 $10,987 $11,491
7/31/87 $10,873 $11,394
8/31/87 $11,151 $11,714
9/30/87 $11,047 $11,629
10/31/87 $11,523 $12,250
11/30/87 $12,088 $12,839
12/31/87 $12,637 $13,416
1/31/88 $12,119 $12,880
2/29/88 $12,181 $12,896
3/31/88 $12,512 $13,271
4/30/88 $12,500 $13,230
5/31/88 $12,435 $13,053
6/30/88 $12,043 $12,626
7/31/88 $11,992 $12,478
8/31/88 $12,111 $12,422
9/30/88 $12,171 $12,572
10/31/88 $12,663 $13,101
11/30/88 $13,056 $13,591
12/31/88 $12,912 $13,405
1/31/89 $12,695 $12,988
2/28/89 $12,700 $13,279
3/31/89 $12,630 $12,975
4/30/89 $12,718 $13,093
5/31/89 $12,447 $12,652
6/30/89 $12,592 $12,816
7/31/89 $12,871 $13,428
8/31/89 $12,649 $13,001
9/30/89 $12,746 $13,522
10/31/89 $12,847 $13,653
11/30/89 $13,102 $13,943
12/31/89 $13,452 $14,420
1/31/90 $13,568 $14,679
2/28/90 $13,554 $14,665
3/31/90 $13,616 $14,707
4/30/90 $13,760 $14,939
5/31/90 $13,928 $15,138
6/30/90 $14,106 $15,494
7/31/90 $14,512 $16,230
8/31/90 $14,718 $16,527
9/30/90 $14,957 $16,783
10/31/90 $15,442 $17,369
11/30/90 $15,458 $17,523
12/31/90 $15,395 $17,662
1/31/91 $15,632 $17,996
2/28/91 $15,660 $17,740
3/31/91 $15,335 $16,628
4/30/91 $15,440 $16,811
5/31/91 $15,400 $16,720
6/30/91 $15,270 $16,449
7/31/91 $15,584 $16,890
8/31/91 $15,446 $17,018
9/30/91 $15,651 $17,748
10/31/91 $15,668 $17,842
11/30/91 $15,904 $18,238
12/31/91 $16,566 $19,152
1/31/92 $16,110 $18,616
2/29/92 $15,936 $18,385
3/31/92 $15,935 $18,376
4/30/92 $16,103 $18,517
5/31/92 $16,548 $19,062
6/30/92 $17,180 $19,859
7/31/92 $17,447 $20,363
8/31/92 $17,785 $21,188
9/30/92 $17,854 $20,902
10/31/92 $17,335 $19,800
11/30/92 $17,204 $19,402
12/31/92 $17,168 $19,330
1/31/93 $17,229 $19,427
2/28/93 $17,561 $19,378
3/31/93 $17,924 $19,923
4/30/93 $18,241 $20,419
5/31/93 $18,486 $20,625
6/30/93 $18,194 $19,879
7/31/93 $18,301 $19,797
8/31/93 $18,426 $20,142
9/30/93 $18,431 $20,484
10/31/93 $18,237 $20,228
11/30/93 $18,203 $20,092
12/31/93 $18,203 $20,117
1/31/94 $18,652 $20,283
2/28/94 $18,791 $20,626
3/31/94 $18,718 $20,876
4/30/94 $18,864 $21,101
5/31/94 $19,105 $21,169
6/30/94 $19,320 $21,857
7/31/94 $19,165 $21,898
8/31/94 $19,257 $22,087
9/30/94 $19,363 $22,590
10/31/94 $19,645 $23,114
11/30/94 $19,496 $22,481
12/31/94 $19,673 $22,641
1/31/95 $19,757 $23,021
2/28/95 $20,065 $23,555
3/31/95 $21,057 $25,025
4/30/95 $21,183 $25,097
5/31/95 $21,136 $24,887
6/30/95 $21,344 $25,230
7/31/95 $21,178 $25,321
8/31/95 $20,559 $24,366
9/30/95 $20,644 $24,932
10/31/95 $20,833 $25,016
11/30/95 $20,591 $24,696
12/31/95 $20,660 $24,948
1/31/96 $20,361 $24,292
2/29/96 $20,648 $24,613
3/31/96 $20,775 $24,652
4/30/96 $20,690 $24,287
5/31/96 $20,812 $24,348
6/30/96 $20,787 $24,433
7/31/96 $20,972 $25,015
8/31/96 $21,145 $25,007
9/30/96 $20,973 $24,617
10/31/96 $21,097 $24,873

GRAPHIC MATERIAL (5)

This chart shows in pie format the asset allocation by currency of the
portfolio's securities on October 31, 1996, as a percentage of total net assets.

Asset Allocation by Currency on October 31, 1996

German Mark 47.7%
Swiss Franc 24.9%
Japanese Yen 15.9%
U.S. Dollar 6.4%
New Zealand Dollar 5.1%

GRAPHIC (6)

The following line graph hypothetically compares the performance of the fund's
shares with the Salomon Brothers World Money Market Index, based on a $100,000
investment from 11/17/89 to 10/31/96.

Period Ending Fund Index

11/17/89 $9,697 $10,000
11/30/89 $9,922 $10,092
12/31/89 $10,434 $10,437
1/31/90 $10,565 $10,625
2/28/90 $10,472 $10,614
3/31/90 $10,413 $10,645
4/30/90 $10,559 $10,813
5/31/90 $10,680 $10,957
6/30/90 $10,889 $11,215
7/31/90 $11,465 $11,747
8/31/90 $11,639 $11,962
9/30/90 $11,882 $12,148
10/31/90 $12,454 $12,572
11/30/90 $12,532 $12,684
12/31/90 $12,541 $12,784
1/31/91 $12,856 $13,025
2/28/91 $12,634 $12,840
3/31/91 $11,559 $12,035
4/30/91 $11,724 $12,168
5/31/91 $11,539 $12,102
6/30/91 $11,254 $11,906
7/31/91 $11,653 $12,225
8/31/91 $11,752 $12,318
9/30/91 $12,338 $12,846
10/31/91 $12,377 $12,915
11/30/91 $12,757 $13,201
12/31/91 $13,579 $13,863
1/31/92 $12,913 $13,474
2/29/92 $12,663 $13,307
3/31/92 $12,627 $13,301
4/30/92 $12,708 $13,403
5/31/92 $13,267 $13,797
6/30/92 $13,937 $14,374
7/31/92 $14,253 $14,739
8/31/92 $14,905 $15,336
9/30/92 $15,169 $15,129
10/31/92 $14,297 $14,332
11/30/92 $14,014 $14,044
12/31/92 $13,884 $13,992
1/31/93 $14,009 $14,062
2/28/93 $14,172 $14,026
3/31/93 $14,538 $14,421
4/30/93 $14,882 $14,780
5/31/93 $14,945 $14,929
6/30/93 $14,494 $14,388
7/31/93 $14,527 $14,329
8/31/93 $14,552 $14,579
9/30/93 $14,646 $14,827
10/31/93 $14,451 $14,641
11/30/93 $14,387 $14,543
12/31/93 $14,529 $14,561
1/31/94 $14,907 $14,681
2/28/94 $15,204 $14,930
3/31/94 $15,198 $15,110
4/30/94 $15,421 $15,273
5/31/94 $15,500 $15,322
6/30/94 $16,058 $15,820
7/31/94 $16,037 $15,850
8/31/94 $16,148 $15,987
9/30/94 $16,525 $16,351
10/31/94 $16,923 $16,731
11/30/94 $16,529 $16,272
12/31/94 $16,723 $16,388
1/31/95 $16,932 $16,663
2/28/95 $17,408 $17,050
3/31/95 $18,675 $18,113
4/30/95 $18,726 $18,166
5/31/95 $18,538 $18,013
6/30/95 $18,797 $18,262
7/31/95 $18,637 $18,328
8/31/95 $17,523 $17,637
9/30/95 $17,942 $18,046
10/31/95 $18,057 $18,107
11/30/95 $17,714 $17,875
12/31/95 $17,830 $18,058
1/31/96 $17,285 $17,583
2/29/96 $17,540 $17,815
3/31/96 $17,457 $17,843
4/30/96 $17,056 $17,579
5/31/96 $16,951 $17,623
6/30/96 $16,998 $17,685
7/31/96 $17,549 $18,106
8/31/96 $17,484 $18,101
9/30/96 $17,012 $17,818
10/31/96 $16,975 $18,003

GRAPHIC MATERIAL (7)

This chart shows in pie format the asset allocation by currency of the
portfolio's securities on October 31, 1996, as a percentage of total net assets.

Asset Allocation by Currency on October 31, 1996

Australian Dollar 20.3%
U.S. Dollar 15.4%
Canadian Dollar 15.2%
British Pound 11.0%
Spanish Pesata 9.7%
Italian Lira 8.5%
New Zealand Dollar 7.6%
Swedish Krona 7.5%
German Mark 2.8%
French Franc 2.0%

GRAPHIC (8)

The following line graph hypothetically compares the performance of the fund's
shares with the Index, based on a $100,000 investment from 11/17/89 to 10/31/96.

Period Ending Fund Index

11/17/89 $9,697 $10,000
11/30/89 $9,767 $10,092
12/31/89 $10,039 $10,437
1/31/90 $10,210 $10,625
2/28/90 $10,227 $10,614
3/31/90 $10,314 $10,645
4/30/90 $10,456 $10,813
5/31/90 $10,616 $10,957
6/30/90 $10,973 $11,215
7/31/90 $11,342 $11,747
8/31/90 $11,602 $11,962
9/30/90 $11,680 $12,148
10/31/90 $11,915 $12,572
11/30/90 $11,983 $12,684
12/31/90 $11,896 $12,784
1/31/91 $12,214 $13,025
2/28/91 $12,245 $12,840
3/31/91 $11,842 $12,035
4/30/91 $11,929 $12,168
5/31/91 $11,883 $12,102
6/30/91 $11,717 $11,906
7/31/91 $11,996 $12,225
8/31/91 $11,988 $12,318
9/30/91 $12,260 $12,846
10/31/91 $12,345 $12,915
11/30/91 $12,559 $13,201
12/31/91 $13,324 $13,863
1/31/92 $12,851 $13,474
2/29/92 $12,750 $13,307
3/31/92 $12,750 $13,301
4/30/92 $12,945 $13,403
5/31/92 $13,453 $13,797
6/30/92 $14,090 $14,374
7/31/92 $14,436 $14,739
8/31/92 $14,864 $15,336
9/30/92 $14,034 $15,129
10/31/92 $13,357 $14,332
11/30/92 $13,095 $14,044
12/31/92 $12,938 $13,992
1/31/93 $13,079 $14,062
2/28/93 $12,860 $14,026
3/31/93 $13,175 $14,421
4/30/93 $13,526 $14,780
5/31/93 $13,725 $14,929
6/30/93 $13,058 $14,388
7/31/93 $12,700 $14,329
8/31/93 $12,744 $14,579
9/30/93 $12,918 $14,827
10/31/93 $12,713 $14,641
11/30/93 $12,526 $14,543
12/31/93 $12,600 $14,561
1/31/94 $12,929 $14,681
2/28/94 $13,018 $14,930
3/31/94 $13,127 $15,110
4/30/94 $13,251 $15,273
5/31/94 $13,313 $15,322
6/30/94 $13,454 $15,820
7/31/94 $13,454 $15,850
8/31/94 $13,525 $15,987
9/30/94 $13,717 $16,351
10/31/94 $13,981 $16,731
11/30/94 $13,739 $16,272
12/31/94 $13,884 $16,388
1/31/95 $13,878 $16,663
2/28/95 $14,165 $17,050
3/31/95 $14,756 $18,113
4/30/95 $14,865 $18,166
5/31/95 $14,705 $18,013
6/30/95 $14,905 $18,262
7/31/95 $15,106 $18,328
8/31/95 $14,683 $17,637
9/30/95 $15,040 $18,046
10/31/95 $15,240 $18,107
11/30/95 $15,003 $17,875
12/31/95 $15,175 $18,058
1/31/96 $15,020 $17,583
2/29/96 $15,257 $17,815
3/31/96 $15,423 $17,843
4/30/96 $15,403 $17,579
5/31/96 $15,553 $17,623
6/30/96 $15,616 $17,685
7/31/96 $15,692 $18,106
8/31/96 $15,857 $18,101
9/30/96 $15,863 $17,818
10/31/96 $16,103 $18,003