<PAGE>
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Templeton Quarterly Shareholder Update May 31, 1995
Growth
Fund The Templeton Growth Fund seeks long-term capital growth through
a flexible policy of investing in stocks and debt obligations of
companies and governments of any nation.
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Performance The chart to the right illustrates the cumulative total return
of an assumed $10,000 investment in Class I shares of Templeton
Growth Fund at its inception on November 29, 1954, with income
dividends and capital gains reinvested through May 31, 1995./1/
[MOUNTAIN CHART APPEARS HERE SHOWING AN INITAL INVESTMENT OF $10,000 MADE ON
11/29/54 (INITIAL NET ASSET VALUE OF $9,425) WOULD BE VALUED AT $2,439,736 ON
5/31/95
Templeton Growth Fund Class I
Total Returns on 5/31/95
Cumulative/1/
One- Five-
Year Year
3.69% 68.53%
Ten- Since $10,000
Year Inception (11/29/54) Cost of
274.54% 24,297.18% investment
11/29/54
Average Annual/2/
One- Five- Initial net
Year Year asset value
3.69% 11.01% $9,425
Ten- Since
Year Inception (11/29/54)
14.12% 14.54%
1. Cumulative total return shows the change in value of an
investment over the periods indicated.
2. Average annual total return represents the average annual
change in value of an investment over the stated periods.
All total return quotations and performance results reflect the
deduction of the maximum 5.75% initial sales charge and a
proportional share of the fund's expenses on an annual basis;
they also assume that all dividends and capital gains
distributions were reinvested when paid. Prior to July 1, 1992,
fund shares were offered at a higher sales charge. Thus, actual
total return for purchasers of shares during that period would
have been somewhat lower than noted above.
The performance shown represents past performance and is not an
indication of future results. This was a period of generally
rising securities prices.
The historical performance data shown above pertain only to
Class I shares of the fund. Class II shares, which the fund
began offering on May 1, 1995, are subject to different fees and
expenses, which will affect their performance. Please see the
prospectus for more details regarding Class I and Class II
shares.
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Portfolio The Templeton Growth Fund's portfolio is diversified across 35
countries and 32 different industries. The chart to the right
shows how the fund's assets were invested globally on May 31,
1995.
For more current information about the fund's holdings, call
Franklin Templeton Fund Information, toll free, at
1-800-DIAL BEN (1-800/342-5236).
Geographic Distribution on 5/31/95
Based on Total Net Assets
[PIE CHART APPEARS HERE SHOWING GEOGRAPHIC DISTRIBUTION OF THE KIND]
<TABLE>
<CAPTION>
Description Amount
-------------------- ----------------
<S> <C>
U. S. Stocks 34.5%
European Stocks 27.3%
Short Term & Cash
Equivalents 12.5%
Asisan Stocks 8.6%
Australian & New Zealand
Stocks 5.7%
Latin American Stocks 4.8%
Fixed-Income Securities 4.5%
Other Stocks 2.1%
</TABLE>
[LOGO OF FRANKLIN TEMPLETON ARREARS HERE]
<PAGE>
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Index The chart to the right compares the cumulative total return of
Comparison the fund's Class I shares with the return of the unmanaged
Morgan Stanley Capital International World Index for the five-
year period ended 5/31/95./3,4/
MSCI World Index/3/ 44.12%
Templeton Growth Fund/4/ 68.53%
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Top Ten Equity Percentage of
Holdings/5/ Total Net Assets
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Merrill Lynch & Co. Inc. 2.0%
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HSBC Holdings PLC 1.3%
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Federal National Mortgage Association 1.2%
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Citicorp 1.2%
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Georgia-Pacific Corp. 1.1%
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Boeing Co. 1.1%
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Aluminum Co. of America (ALCOA) 1.1%
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Total SA, B 1.1%
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Asea AB 1.0%
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Ford Motor Co. 1.0%
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A Few Words The fund's share price and returns will fluctuate with market
About Risk conditions, currencies, and the economic and political climates
where investments are made, and you may have a gain or loss when
you sell your shares. These special risk considerations are
discussed in the prospectus.
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Questions -------------------------------------------------------
About Your Upcoming Communications Mailing Date
Account? -------------------------------------------------------
Annual Report October 1995
Franklin Quarterly Shareholder Update January 1996
Templeton Semi-Annual Report April 1996
Account -------------------------------------------------------
Services
1-800/393-3001
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Principal 3. The MSCI World Index does not contain cash (the fund
Underwriter generally carries a certain percentage of cash at any given
time), and does not include sales charges or management fees.
Franklin One cannot invest directly in an index. Total return includes
Templeton reinvested dividends.
Distributors,
Inc. 4. Cumulative total return shows the change in value of an
700 Central investment over the specified periods. These calculations
Avenue include the deduction of the fund's 5.75% maximum initial sales
St. Petersburg, charge and assume reinvestment of dividends and capital gains at
Florida net asset value. Prior to July 1, 1992, fund shares were offered
33701-3628 at a higher sales charge. Thus, actual total returns for
purchasers of shares during that period would have been somewhat
lower than noted above.
5. For more current information about the fund's holdings, call
Franklin Templeton Fund Information, toll free, at
1-800/342-5236.
The historical performance data shown above pertain only to
Class I shares of the fund. Class II shares, which the fund
began offering on May 1, 1995, are subject to different fees and
expenses, which will affect their performance. Please see the
prospectus for more details regarding Class I and Class II
shares.
This report must be preceded or accompanied by a prospectus of
Templeton Growth Fund, which contains more information about the
sales charge and expenses. For information about the other
Templeton Funds, request a prospectus from your securities
dealer or from Franklin Templeton Distributors, Inc. Please read
the prospectus carefully before investing or sending money.
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Mutual funds, annuities, and other investment products:
. are not FDIC insured;
. are not deposits or obligations of, or guaranteed by, any
financial institution;
. are subject to investment risks, including possible loss of
the principal amount invested.
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NASDAQ: TEPLX Templeton Fund #101
CUSIP: 880 199 104 TL101 QU 7/95
