<PAGE>
Templeton Global
Opportunities Trust
Your Fund's Objective:
The Templeton Global Opportunities Trust seeks long-term capital growth through
a flexible policy of investing in global securities. The Trust invests
primarily in common stock and may also invest in preferred stocks and certain
debt securities, rated or unrated, such as convertible bonds and bonds selling
at a discount.
August 15, 1996
Dear Shareholder:
We are pleased to bring you this semi-annual report of the Templeton Global
Opportunities Trust for the six months ended June 30, 1996. During this period,
the Fund's Class I shares, as discussed in the Performance Summary on page 5,
provided a total return of 12.37%, significantly outperforming the unmanaged
Morgan Stanley Capital International (MSCI) World Index, which posted a total
return of 7.32% for the same period. These results were attributable largely to
strong rebounds in stocks of emerging market companies and cyclical stocks,
which typically outperform the overall market when the pace of economic activity
quickens.
Following a two-year decline, share prices of many emerging market companies
reached extremely low levels in early 1996. Taking advantage of the investment
opportunities these depressed valuations presented, we increased their
proportion of the Fund's total net assets, from slightly over 20% on December
31, 1995, to nearly
1
<PAGE>
25% on June 30, 1996 (the limit described in the prospectus). During this
reporting period, the economies of many Latin American countries improved as the
effects of the 1994 Mexican peso crisis diminished. This prompted a renewed
flow of capital to emerging markets, and higher stock prices for many of these
companies. Two of our investments that participated in this rally were Cia
Siderugica Nacional, a Brazilian steel company, and the Indonesian industrial
conglomerate PT Bimantara Citra. Although the Fund has already benefited from
the strong performance of many emerging market companies, we continue to hold
our positions because we believe that valuation levels are still relatively
depressed.
At the end of 1995, cyclical company stocks were trading at low valuation
levels. Many of these companies are involved in the production and distribution
of raw materials or industrial machinery, and a sharp slowdown in demand for
industrial commodities in 1995 led them to cut back previously planned
expansions. When economic activity rebounded unexpectedly in early 1996, these
companies regained favor with investors, who hoped that rising commodity prices
would increase corporate profits. In this sector, our shares of European Vinyls
Corp., a Dutch company, performed well for our portfolio.
===============================================================================
Templeton Global Opportunities Trust
Geographic Distribution on 6/30/96
Based on Total Net Assets
[A 3-D PIE CHART APPEARS HERE]
The Fund's performance was also helped by its absence from the Japanese stock
market, which underperformed the MSCI and delivered a total return of 1.6% when
measured in U.S. dollars.1 Although Japan may be starting to recover from its
four-year-long recession, we believe Japanese share prices already anticipate
stronger earnings. These stocks remain the world's most expensive according to
most standard measures, including price-earnings ratios, and we do not
anticipate purchasing any Japanese stocks unless their valuations fall
substantially.
1. Source: Performance of Japanese market as measured by the MSCI-Japan Index.
2
<PAGE>
On June 30, 1996, two of our largest geographical sectors were U.S. and
Scandinavian stocks. During the reporting period, we held the U.S. stock
portion in our portfolio steady at approximately 21% of total net assets. This
sector represents primarily cyclical and financial stocks such as Goodyear Tire
and Merrill Lynch, which we believe are currently undervalued. Many of our
Scandinavian stocks (13.9% of total net assets) performed well, including such
holdings as Outokumpu OY, a Finnish industrial company and Elkem, a Norwegian
metals producer. In our opinion, many of these shares also remain undervalued,
and currently we do not anticipate taking our profits in this area.
Looking forward, we believe the long-term prospects for many companies in newly
industrialized countries remain exceptionally bright. Improving economies in
the U.S., Japan, China, and parts of Europe should provide markets for the
products of developing countries. We also expect that higher levels of economic
growth should improve the outlook for cyclical stocks worldwide. Although their
short-term performance could be lackluster due to lingering concerns about the
economic recovery in the developed world, the prospects for exceptional
performance over the longer term seem favorable. The Templeton Global
Opportunities Trust should perform
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
Top 10 Industries on 6/30/96
As a Percentage of Total Net Assets
<S> <C>
% of Total
Industry Net Assets
- -------------------------------------------------------------------------------
Forest Products & Paper 12.0%
- -------------------------------------------------------------------------------
Banking 11.5%
- -------------------------------------------------------------------------------
Financial Services 7.3%
- -------------------------------------------------------------------------------
Telecommunications 7.3%
- -------------------------------------------------------------------------------
Metals & Mining 6.3%
- -------------------------------------------------------------------------------
Energy Sources 5.8%
- -------------------------------------------------------------------------------
Insurance 5.2%
- -------------------------------------------------------------------------------
Multi-Industry 4.0%
- -------------------------------------------------------------------------------
Utilities - Electrical & Gas 4.0%
- -------------------------------------------------------------------------------
Electrical & Electronics 3.5%
- -------------------------------------------------------------------------------
</TABLE>
well under these conditions, and we are hopeful that this strategy will yield
attractive long-term returns for our investors as it has so often in the past.
There are, of course, special risks involved with global investing related to
market, currency, economic, political and other factors. Developing markets
involve heightened risks related to the same factors, in addition to those
associated with the relatively small size and lesser liquidity of these markets.
These risks are discussed in the Fund's prospectus. While short-term volatility
can be disconcerting, declines of as much as 40% to 50% are not unusual in
emerging markets. For example, the
3
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
Top 10 Holdings on 6/30/96
As a Percentage of Total Net Assets
<S> <C>
% of Total
Company, Industry, Country Net Assets
- -------------------------------------------------------------------------------
PT Bimantara Citra, fgn.
Multi-Industry, Indonesia 1.9%
- -------------------------------------------------------------------------------
Peregrine Investments Holdings, Ltd.
Financial Services, Hong Kong 1.9%
- -------------------------------------------------------------------------------
Iberdrola SA
Utilities - Electrical & Gas, Spain 1.9%
- -------------------------------------------------------------------------------
Banco Nacional de Mexico SA,
7.00%, conv., 12/15/99, Bonds, Mexico 1.7%
- -------------------------------------------------------------------------------
Stadshypotek AS, A, 144a
Banking, Sweden 1.6%
- -------------------------------------------------------------------------------
Tosco Corp.
Energy Sources, United States 1.6%
- -------------------------------------------------------------------------------
ABB AG, br.
Electrical & Electronics, Switzerland 1.5%
- -------------------------------------------------------------------------------
Volvo AB, B
Automobiles, Sweden 1.5%
- -------------------------------------------------------------------------------
National Mutual Asia Ltd.
Insurance, Hong Kong 1.4%
- -------------------------------------------------------------------------------
Morgan Stanley Group
Financial Services, United States 1.4%
- -------------------------------------------------------------------------------
</TABLE>
For a complete list of portfolio holdings, see page 9 of this report.
Hong Kong market has increased 535% in the last 15 years, but has suffered six
declines of more than 20% during that time./2/
This discussion reflects the strategies we employed for the Fund during the past
six months, and includes our
2. Source: Bloomberg. Based on quarterly percentage change over 15 years
ended June 30, 1996.
opinions as of the close of the period. Since economic and market conditions
are constantly changing, our strategies, and our 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 securities we
purchase or sell for the Fund.
We welcome your comments and thank you for the trust you have placed in us. We
look forward to helping you meet your financial objectives in the years to come.
Sincerely,
/s/ Martin L. Flanagan
Martin L. Flanagan
President
Templeton Global Opportunities Trust
/s/ Howard J. Leonard
Howard J. Leonard
Portfolio Manager
Templeton Global Opportunities Trust
4
<PAGE>
Performance Summary
Class I
The Templeton Global Opportunities Trust Class I shares reported a total return
of 12.37% for the six-month period ended June 30, 1996. Total return measures
the change in value of an investment, assuming reinvestment of dividends and
capital gains distributions, and does not include the initial sales charge. 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 see from
the chart to the right, the Fund's Class I shares delivered a cumulative total
return of more than 119% since inception on January 19, 1990.
The price of the Fund's Class I shares, as measured by net asset value,
increased by $1.31, from $12.57 on December 31, 1995 to $13.88 on June 30, 1996.
During this time, shareholders received distributions of 2.5 cents ($0.025) per
share in income dividends and 21.0 cents ($0.21) in long-term capital gains. Of
course, past performance is not predictive of future results, and
Templeton Global
Opportunities Trust
Class I
Periods ended June 30, 1996
<TABLE>
<CAPTION>
Since
Inception
One-Year Five-Year (1/19/90)
<S> <C> <C> <C>
Average Annual
Total Return/1/ 7.33% 14.04% 11.94%
Cumulative
Total Return/2/ 13.91% 104.54% 119.47%
Value of $10,000
Investment/3/ $10,733 $19,287 $20,692
</TABLE>
1. Average annual total returns show the average annual change in value of an
investment over the periods indicated and include the maximum 5.75% initial
sales charge. See Note below.
2. Cumulative total returns show the change in value of an investment over the
periods indicated and do not include the sales charge. See Note below.
3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated and include the maximum 5.75% initial sales
charge. See Note below.
Note: Prior to July 1, 1992, Class I shares were offered at a higher sales
charge. Thus, actual total return would have been somewhat lower than noted
above. All total return calculations assume reinvestment of dividends and
capital gains distributions when paid.
Investment return and principal value will fluctuate with market conditions,
currencies and the economic and political climates of the countries where
investments are made. Developing markets involve heightened risks, in addition
to those associated with the relatively small size and lesser liquidity of these
markets. Your shares, when redeemed, may be worth more or less than their
original cost. Past performance is not predictive of future results.
distributions will vary depending on income earned by the Fund, as well as any
profits realized from the sale of securities in the portfolio.
5
<PAGE>
Performance Summary
Class II
The Templeton Global Opportunities Trust Class II shares reported a total return
of 12.00% for the six-month period ended June 30, 1996. Total return measures
the change in value of an investment, assuming reinvestment of dividends and
capital gains distributions, and does not include any sales charges. We always
maintain a long-term perspective when managing the Fund, and we encourage
shareholders to view their investments in a similar manner.
The price of the Fund's Class II shares, as measured by net asset value,
increased by $1.26, from $12.53 on December 31, 1995 to $13.79 on June 30, 1996.
During this time, shareholders received distributions of 2.49 cents ($0.0249)
per share in income dividends and 21.0 cents ($0.21) in long-term capital gains.
Of course, past performance is not predictive of future results, and
distributions will vary depending on income earned by the Fund, as well as any
profits realized from the sale of securities in the portfolio.
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
Class II
Periods ended June 30, 1996
<TABLE>
<CAPTION>
Since
Inception
One-Year (5/1/95)
<S> <C> <C>
Average Annual
Total Return/1/ 11.02% 15.34%
Cumulative
Total Return/2/ 13.13% 20.33%
Value of $10,000
Investment/3/ $11,102 $11,817
</TABLE>
1. Average annual total returns show the average annual change in value of an
investment over the periods indicated and include the maximum 1.00% initial
sales charge and the 1.00% contingent deferred sales charge (CDSC) applicable to
shares redeemed within the first 18 months after purchase.
2. Cumulative total returns show the change in value of an investment over the
periods indicated and do not include sales charges.
3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated and include the 1.00% initial sales charge and
the 1.00% CDSC.
Investment return and principal value will fluctuate with market conditions,
currencies and the economic and political climates of the countries where
investments are made. Developing markets involve heightened risks, in addition
to those associated with the relatively small size and lesser liquidity of these
markets. Your shares, when redeemed, may be worth more or less than their
original cost. Past performance is not predictive of future results.
6
<PAGE>
Templeton Global Opportunities Trust
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31
JUNE 30, 1996 ------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period $ 12.57 $ 11.84 $ 14.46 $ 10.75 $ 10.94 $ 8.36
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income .22 .16 .09 .12 .14 .17
Net realized and
unrealized gain (loss) 1.33 1.33 (.63) 3.97 .61 2.59
-------- -------- -------- -------- -------- --------
Total from investment
operations 1.55 1.49 (.54) 4.09 .75 2.76
-------- -------- -------- -------- -------- --------
Distributions:
Dividends from net in-
vestment income (.03) (.16) (.09) (.11) (.14) (.01)
Distributions from net
realized gains (.21) (.60) (1.99) (.27) (.65) (.17)
Amount in excess of net
realized gain -- -- -- -- (.15) --
-------- -------- -------- -------- -------- --------
Total distributions (.24) (.76) (2.08) (.38) (.94) (.18)
-------- -------- -------- -------- -------- --------
Change in net asset
value 1.31 .73 (2.62) 3.71 (.19) 2.58
-------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 13.88 $ 12.57 $ 11.84 $ 14.46 $ 10.75 $ 10.94
======== ======== ======== ======== ======== ========
TOTAL RETURN* 12.37% 12.87% (4.09)% 38.13% 6.85% 31.16%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (000) $575,182 $510,777 $476,822 $410,747 $248,807 $200,848
Ratio of expenses to av-
erage net assets 1.42%** 1.52% 1.53% 1.51% 1.63% 1.76%
Ratio of net investment
income to average
net assets 3.26%** 1.19% .71% 1.07% 1.36% 1.63%
Portfolio turnover rate 8.34% 15.54% 37.31% 40.56% 22.03% 21.02%
Average commission rate
paid (per share) $ .0031
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR PERIODS
OF LESS THAN ONE YEAR.
**ANNUALIZED.
7
<PAGE>
Templeton Global Opportunities Trust
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS II
-------------------------------
SIX MONTHS FOR THE PERIOD
ENDED MAY 1, 1995+
JUNE 30, 1996 THROUGH
(UNAUDITED) DECEMBER 31, 1995
------------- -----------------
<S> <C> <C>
Net asset value, beginning of period $12.53 $12.26
------ ------
Income from investment operations:
Net investment income .21 .02
Net realized and unrealized gain 1.29 .88
------ ------
Total from investment operations 1.50 .90
------ ------
Distributions:
Dividends from net investment income (.03) (.12)
Distributions from net realized gains (.21) (.51)
------ ------
Total distributions (.24) (.63)
------ ------
Change in net asset value 1.26 .27
------ ------
Net asset value, end of period $13.79 $12.53
====== ======
TOTAL RETURN* 12.00% 7.43%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $7,170 $2,264
Ratio of expenses to average net assets 2.18%** 2.22%**
Ratio of net investment income to average net assets 2.80%** (.01)%**
Portfolio turnover rate 8.34% 15.54%
Average commission rate paid (per share) $.0031
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS OR THE CONTINGENT DEFERRED
SALES CHARGE. NOT ANNUALIZED FOR PERIODS OF LESS THAN ONE YEAR.
**ANNUALIZED.
+COMMENCEMENT OF SALES.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS: 78.2%
- -------------------------------------------------------------------------------
Automobiles: 2.0%
*Ciadea SA Arg. 399,999 $ 2,821,037
Volvo AB, B Swe. 384,000 8,757,589
------------
11,578,626
- -------------------------------------------------------------------------------
Banking: 8.3%
Banco Ganadero SA, ADR C Col. 85,000 1,657,500
Banco Popular Espanol Sp. 35,000 6,245,069
BPI Socieda de Gestora de
Participacoes Socias SA Port. 85,000 1,077,771
Ergo Bank SA Gr. 50,050 2,756,859
*Fokus Bank AS, 144A Nor. 1,000,000 5,454,503
Korea Long Term Credit Bank Kor. 24,899 676,803
National Australia Bank Ltd. Aus. 424,214 3,917,566
Shinhan Bank Co. Ltd. Kor. 76,935 1,761,576
Sparbanken Sverige AB, A,
144A Swe. 601,700 7,815,466
Stadsyhpotek AS, A, 144A Swe. 426,600 9,535,841
Union Bank of Norway, Primary
Capital Cert. Nor. 124,800 3,057,480
Union Bank of Norway, Primary
Capital Cert. 144A Nor. 175,200 4,292,232
------------
48,248,666
- -------------------------------------------------------------------------------
Broadcasting & Publishing: 0.2%
Sing Tao Holdings Ltd. H.K. 1,911,800 1,129,927
- -------------------------------------------------------------------------------
Building Materials & Components: 1.5%
Cementos Diamante, ADR, 144A Col. 174,000 2,457,750
Gujarat Ambuja Cements Ltd.,
GDR Ind. 84,000 1,050,000
*Owens Corning U.S. 125,000 5,375,000
------------
8,882,750
- -------------------------------------------------------------------------------
Business & Public Services: 1.0%
Laidlaw Inc., B Can. 600,000 6,086,797
- -------------------------------------------------------------------------------
Chemicals: 1.2%
European Vinyls Corp., EVC
International NV Neth. 117,400 3,648,314
Gujarat Narmada Valley
Fertilizers Co. Ltd., GDR,
144A Ind. 517,600 3,364,400
------------
7,012,714
- -------------------------------------------------------------------------------
Construction & Housing: 0.2%
Kaufman & Broad Home Corp. U.S. 77,000 1,116,500
- -------------------------------------------------------------------------------
Data Processing & Reproduction: 1.3%
*Newbridge Networks Corp. Can. 116,100 7,604,550
- -------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, June 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Electrical & Electronics: 3.5%
ABB AG, br. Swtz. 7,248 $ 8,974,128
Motorola Inc. U.S. 10,000 628,750
Philips Electronics NV Neth. 135,000 4,393,140
Scitex Corp. Ltd. Isrl. 360,000 6,210,000
------------
20,206,018
- -------------------------------------------------------------------------------
Electronic Components & Instruments: 1.0%
Intel Corp. U.S. 80,000 5,875,000
- -------------------------------------------------------------------------------
Energy Sources: 5.8%
Amerada Hess Corp. U.S. 50,000 2,681,250
Societe Elf Aquitane SA Fr. 55,000 4,047,820
Tosco Corp. U.S. 180,000 9,045,000
Total SA, B Fr. 100,000 7,421,879
Valero Energy Corp. U.S. 161,400 4,035,000
*Wascana Energy Inc. Can. 675,000 6,427,394
------------
33,658,343
- -------------------------------------------------------------------------------
Financial Services: 7.3%
Alex Brown Inc. U.S. 80,000 4,520,000
Federal National Mortgage
Assn. U.S. 220,000 7,370,000
London Pacific Group Ltd. U.K. 1,243,900 4,974,286
Merrill Lynch & Co. Inc. U.S. 100,000 6,512,500
Morgan Stanley Group U.S. 166,000 8,154,750
Peregrine Investments
Holdings Ltd. H.K. 7,750,000 11,163,324
*Peregrine Investments
Holdings Ltd., wts. H.K. 775,000 96,115
------------
42,790,975
- -------------------------------------------------------------------------------
Food & Household Products: 0.5%
Amway Asia Pacific Ltd. U.S. 10,600 320,650
Cafe de Coral Holdings Ltd. H.K. 7,599,000 2,110,629
*Grupo Embotellador de Mexico
SA, B Mex. 370,200 673,535
------------
3,104,814
- -------------------------------------------------------------------------------
Forest Products & Paper: 12.0%
*Asia Pacific Resources
International, A Indo. 988,300 7,412,250
Assidomaen AB Swe. 219,900 5,131,332
Boise Cascade Corp. U.S. 100,000 3,662,500
Bowater Inc. U.S. 180,000 6,772,500
Carter Holt Harvey Ltd. N.Z. 3,084,890 7,067,598
*Empaques Ponderosa SA de CV,
B Mex. 500,000 1,199,736
*Enso OY, R Fin. 625,000 4,871,479
Fletcher Challenge Ltd.,
Forestry Division N.Z. 3,762,518 4,685,383
Georgia-Pacific Corp. U.S. 75,000 5,325,000
</TABLE>
10
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, June 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ------------------------------------------------------------------------------
Forest Products & Paper (cont.)
International Paper Co. U.S. 120,000 $ 4,425,000
Mead Corp. U.S. 90,000 4,668,750
Portucel Industrial Empresa
Product Celulose, ADR, 144A Port. 975,500 6,249,930
PT Barito Pacific Timber,
fgn. Indo. 3,884,000 2,544,834
Rayonier Inc. U.S. 155,000 5,890,000
------------
69,906,292
- ------------------------------------------------------------------------------
Health & Personal Care: 1.9%
Astra AB, B Swe. 100,000 4,364,900
Medeva PLC U.K. 988,516 3,853,235
Windmere-Durable Holdings
Inc. U.S. 225,000 2,953,125
------------
11,171,260
- ------------------------------------------------------------------------------
Industrial Components: 1.2%
Goodyear Tire & Rubber Co. U.S. 150,000 7,237,500
- ------------------------------------------------------------------------------
Insurance: 5.2%
Ace Ltd. Bmu. 171,000 8,037,000
American International Group
Inc. U.S. 50,000 4,931,250
GIO Austrailia Holdings Ltd. Aus. 2,000,000 4,920,030
National Mutual Asia Ltd. H.K. 9,612,000 8,443,833
Presidential Life Corp. U.S. 375,000 3,890,625
------------
30,222,738
- ------------------------------------------------------------------------------
Leisure & Tourism: 1.3%
Kuoni Reisen Holding AG, B Swtz. 3,180 7,299,820
- ------------------------------------------------------------------------------
Machinery & Engineering: 2.3%
Rauma, ADS Fin. 338,400 6,683,400
VA Technologie AG, br., 144A Aust. 52,300 6,430,308
------------
13,113,708
- ------------------------------------------------------------------------------
Merchandising: 0.7%
*Cifra SA, B Mex. 501,000 725,245
*Waban Inc. U.S. 140,000 3,342,500
------------
4,067,745
- ------------------------------------------------------------------------------
Metals & Mining: 6.3%
Aluminum Co. of America U.S. 70,000 4,016,250
Boehler Uddeholm AG Aust. 58,500 4,536,367
Companhia Siderurgica
Nacional Braz. 151,111,000 3,852,454
Elkem AS Nor. 323,800 4,465,312
*Inmet Mining Corp. Can. 800,000 5,830,434
Outokumpu OY, A Fin. 379,175 6,385,692
</TABLE>
11
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, June 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ------------------------------------------------------------------------------
Metals & Mining (cont.)
*Pechiney SA, A Fr. 103,125 $ 4,167,699
Trelleborg AB, B Swe. 264,500 3,315,738
------------
36,569,946
- ------------------------------------------------------------------------------
Multi-Industry: 3.0%
*Fotex First Hungarian-
American Photo-Service Hun. 775,200 702,522
Nokia AB, A Fin. 156,200 5,767,011
PT Bimantara Citra, fgn. Indo. 8,975,000 11,279,001
------------
17,748,534
- ------------------------------------------------------------------------------
Real Estate: 1.1%
*Fastighets AB Tornet, A Swe. 60,170 490,739
PT Jaya Properties, fgn. Indo. 1,799,000 5,729,361
------------
6,220,100
- ------------------------------------------------------------------------------
Recreation & Other Consumer Goods: 0.6%
Yue Yuen Industrial
(Holdings) Ltd. H.K. 12,268,000 3,486,691
- ------------------------------------------------------------------------------
Telecommunications: 1.9%
Lucent Technologies Inc. U.S. 121,000 4,582,875
Telefonica de Espana SA Sp. 340,000 6,268,505
------------
10,851,380
- ------------------------------------------------------------------------------
Textiles & Apparel: 0.4%
*Dhan Fibres, 144A Pak. 13,575,000 2,423,761
- ------------------------------------------------------------------------------
Transportation: 2.3%
Airborne Freight Corp. U.S. 200,000 5,200,000
*Guangshen Railway Co. Ltd.,
ADR Chn. 163,200 3,121,200
Qantas Airways Ltd., ADR,
144A Aus. 142,700 2,434,819
*Railtrack Group PLC, 144A U.K. 301,600 1,025,755
Shanghai Hai Xing Shipping
Co., H Chn. 20,611,000 1,357,958
------------
13,139,732
- ------------------------------------------------------------------------------
Utilities--Electrical & Gas: 4.0%
Cia Energetica de Minas
Gerais, ADR Braz. 225,000 5,982,672
Consolidated Electric Power
Asia Ltd., ADR, 144A H.K. 295,000 4,867,500
Electricidad de Caracas Venz. 2,057,999 1,710,868
Iberdrola SA Sp. 1,050,000 10,786,688
------------
23,347,728
- ------------------------------------------------------------------------------
Wholesale & International Trade: 0.2%
Sime Darby Hongkong Ltd. H.K. 1,127,000 1,215,703
------------
TOTAL COMMON STOCKS (cost $376,097,459) 455,318,318
- ------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, June 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
PREFERRED STOCKS: 6.0%
- -------------------------------------------------------------------------------
ABN Amro NV, conv., pfd. Neth. 90,000 $ 4,432,718
Cia de Inversiones en
Telecomunicaciones SA,
7.00%, pfd. Arg. 138,707 8,045,006
Jardine Strategic
Holdings Ltd., 7.50%,
conv., pfd. H.K. 5,054,000 5,508,860
Nacional Financiera SA,
11.25%, conv., pfd. Mex. 205,150 7,026,388
Philippine Long Distance
Telephone Co., 7.00%,
pfd. Phil. 105,000 5,722,500
Telebras-Telecomunicacoes
Brasileiras SA,
ADR, pfd. Braz. 65,000 4,525,625
------------
TOTAL PREFERRED STOCKS (cost
$29,089,302) 35,261,097
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY**
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
BONDS: 4.6%
- -------------------------------------------------------------------------------
Banco Nacional de Mexico
SA, 7.00%,
conv., 12/15/99 U.S. 10,910,000 10,050,292
Brierley Investments
Ltd., 9.00%, conv.,
6/30/98 N.Z. 849,949 720,406
CS Holding Finance BV,
4.875%, conv., 11/19/02 U.S. 2,800,000 4,032,000
Government of Italy,
5.00%, 6/28/01 U.S. 5,235,000 5,352,788
Softe SA, 4.25%, conv.,
7/30/98, 144A Itl. 6,400,000,000 6,361,351
------------
TOTAL BONDS (cost $24,985,579) 26,516,837
- -------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 12.0% (cost
$69,648,790)
- -------------------------------------------------------------------------------
U.S. Treasury Bills,
4.955% to 5.09% with
maturities to 9/12/96 U.S. 70,000,000 69,666,560
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS: 100.8% (cost
$499,821,130) 586,762,812
OTHER ASSETS, LESS LIABILITIES:
(0.8)% (4,410,688)
------------
TOTAL NET ASSETS: 100.0% $582,352,124
============
</TABLE>
*NON-INCOME PRODUCING.
**PRINCIPAL AMOUNT IN CURRENCY OF COUNTRY INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Templeton Global Opportunities Trust
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (unaudited)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value
(identified cost $499,821,130) $586,762,812
Cash 318
Receivables:
Fund shares sold 866,869
Dividends and interest 2,072,438
------------
Total assets 589,702,437
------------
Liabilities:
Payables:
Investment securities purchased 5,852,768
Fund shares redeemed 524,629
Accrued expenses 972,916
------------
Total liabilities 7,350,313
------------
Net assets, at value $582,352,124
============
Net assets consist of:
Undistributed net investment income $ 8,752,240
Net unrealized appreciation 86,941,682
Accumulated net realized gain 13,555,891
Net capital paid in on shares of beneficial interest 473,102,311
------------
Net assets, at value $582,352,124
============
Class I
Net asset value per share ($575,181,701 / 41,427,717
shares outstanding) $ 13.88
============
Maximum offering price
($13.88 / 94.25%) $ 14.73
============
Class II
Net asset value per share
($7,170,423 / 519,827
shares outstanding) $ 13.79
============
Maximum offering price
($13.79 / 99.00%) $ 13.93
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
for the six months ended June 30, 1996 (unaudited)
<TABLE>
<S> <C> <C>
Investment income:
(net of $1,039,917
foreign taxes withheld)
Dividends $10,638,524
Interest 2,408,887
-----------
Total income $13,047,411
Expenses:
Management fees (Note 3) 2,219,703
Administrative fees
(Note 3) 389,523
Distribution Fees (Note 3)
Class I 688,308
Class II 24,672
Transfer agent fees
(Note 3) 375,000
Custodian fees 107,500
Reports to shareholders 95,000
Audit fees 20,000
Registration and filing fees 20,000
Trustees' fees and
expenses 31,000
Other 2,779
-----------
Total expenses 3,973,485
-----------
Net investment
income 9,073,926
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 16,521,203
Foreign currency transactions (210,446)
-----------
16,310,757
Net unrealized
appreciation on investments 38,303,512
-----------
Net realized and unrealized gain 54,614,269
-----------
Net increase in net assets resulting from operations $63,688,195
===========
</TABLE>
14
<PAGE>
Templeton Global Opportunities Trust
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
------------- -----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 9,073,926 $ 5,988,672
Net realized gain on investment and for-
eign currency transactions 16,310,757 22,985,453
Net unrealized appreciation 38,303,512 30,619,809
------------ ------------
Net increase in net assets resulting from
operations 63,688,195 59,593,934
Distributions to shareholders:
From net investment income
Class I (1,010,684) (5,674,514)
Class II (7,818) (19,476)
From net realized gain
Class I (8,491,187) (23,792,243)
Class II (65,873) (84,546)
Fund share transactions (Note 2)
Class I 10,656,530 3,824,434
Class II 4,541,947 2,371,175
------------ ------------
Net increase in net assets 69,311,110 36,218,764
Net assets:
Beginning of period 513,041,014 476,822,250
------------ ------------
End of period $582,352,124 $513,041,014
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
Templeton Global Opportunities Trust
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Global Opportunities Trust (the Fund) is a Massachusetts business
trust and an open-end, diversified management investment company registered un-
der the Investment Company Act of 1940. The Fund seeks long-term capital growth
through a flexible policy of investing in global securities. The following sum-
marizes the Fund's significant accounting policies.
a. Securities Valuations:
Securities listed or traded on a recognized national or foreign exchange or
NASDAQ are valued at the last reported sales prices on the principal exchange
on which the securities are traded. Over-the-counter securities for which no
sale is reported are valued at the mean between the last current bid and asked
prices. Securities for which market quotations are not readily available are
valued at fair value as determined by management and approved in good faith by
the Board of Trustees.
b. Foreign Currency Transactions:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation. Purchases and
sales of portfolio securities and income items denominated in foreign curren-
cies are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customar-
ily enters into a foreign exchange contract to minimize foreign exchange risk
between the trade date and the settlement date of such transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the 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 of for-
eign currencies, currency gains or losses realized between the trade and set-
tlement dates on securities transactions, the differences between the amounts
of dividends, interest, and foreign withholding taxes recorded on the Fund's
books, and the U.S. dollar equivalent of the amounts actually received or paid.
Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at the end
of the fiscal period, resulting from changes in the exchange rates.
c. Income Taxes:
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders. Therefore, no provision has been made
forincome taxes.
d. Security Transactions, Investment Income, Distributions and Expenses:
Security transactions are accounted for on a trade date basis. Dividend income
is recorded on the ex-dividend date. Certain dividend income on foreign securi-
ties is recorded as soon as information is available to the Fund. Interest in-
come and estimated expenses are accrued daily. Distributions to shareholders,
which are determined in accordance with income tax regulations, are recorded on
the ex-dividend date.
e. 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 expenses during the report-
ing period. Actual results could differ from those estimates.
16
<PAGE>
Templeton Global Opportunities Trust
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
The Fund offers two classes of shares: Class I shares and Class II shares.
Shares of each class are identical except for their initial sales load, a con-
tingent deferred sales charge on Class II shares, distribution fees, and voting
rights on matters affecting a single class. At June 30, 1996, there were an un-
limited number of shares of beneficial interest authorized for each class of
shares ($0.01 par value). Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
CLASS I
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 3,619,927 $ 48,616,313 5,371,682 $ 67,759,190
Shares issued on
reinvestment
of
distributions 644,620 8,592,260 2,184,017 26,504,181
Shares redeemed (3,486,276) (46,552,043) (7,163,041) (90,438,937)
---------- ------------ ---------- ------------
Net increase 778,271 $ 10,656,530 392,658 $ 3,824,434
========== ============ ========== ============
<CAPTION>
CLASS II
--------------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED MAY 1, 1995 THROUGH
JUNE 30, 1996 DECEMBER 31, 1995
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 342,687 $ 4,589,013 196,010 $ 2,576,233
Shares issued on
reinvestment
of
distributions 4,810 63,882 6,729 81,954
Shares redeemed (8,316) (110,948) (22,093) (287,012)
---------- ------------ ---------- ------------
Net increase 339,181 $ 4,541,947 180,646 $ 2,371,175
========== ============ ========== ============
</TABLE>
17
<PAGE>
Templeton Global Opportunities Trust
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton In-
vestment Counsel, Inc. (TICI), Templeton Global Investors, Inc. (TGII), Frank-
lin Templeton Distributors, Inc. (FTD) and Franklin Templeton Investor Servic-
es, Inc. (FTIS), the Fund's investment manager, administrative manager, princi-
pal underwriter, and transfer agent, respectively.
The Fund pays monthly an investment management fee to TICI equal, on an annual
basis, to 0.80% of the average daily net assets of the Fund of which 0.25% is
paid to Dean Witter InterCapital, Inc., a subsidiary of Dean Witter Discover &
Co. for subadvisory services. The Fund pays TGII monthly an administrative fee
of 0.15% per annum of the first $200 million of the Fund's aggregate average
daily net assets, 0.135% of the next $500 million, 0.10% of the next $500 mil-
lion, and 0.075% per annum of such average net assets in excess of $1.2 bil-
lion. For the six months ended June 30, 1996, FTD received net commissions of
$104,747 from the sale of the Fund's shares and FTIS received fees of $375,000.
Under the distribution plans for Class I and Class II shares, the Fund reim-
burses FTD quarterly, the substantial portion of which is paid to Dean Witter,
Discover & Co. and other dealers who distribute the Fund's shares, for FTD's
costs and expenses in connection with any activity that is primarily intended
to result in a sale of Fund shares, subject to a maximum of 0.25% and 1.00% per
annum of the average daily net assets of Class I and Class II shares, respec-
tively. Under the Class I distribution plan, costs and expenses exceeding the
maximum may be reimbursed in subsequent periods. At June 30, 1996, unreimbursed
expenses amounted to $1,266,195. Class II shares redeemed within 18 months are
subject to a contingent deferred sales charge. Contingent deferred sales
charges of $1,416 were paid to FTD for the six months ended June 30, 1996.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the six
months ended June 30, 1996 aggregated $41,250,645 and $54,868,981, respective-
ly. The cost of securities for federal income tax purposes is $502,628,101. Re-
alized gains and losses are reported on an identified cost basis.
At June 30, 1996, the aggregate gross unrealized appreciation and depreciation
of portfolio securities, based on cost for federal income tax purposes, was as
follows:
<TABLE>
<CAPTION>
<S> <C>
Unrealized appreciation $130,438,746
Unrealized depreciation (46,304,035)
------------
Net unrealized appreciation $ 84,134,711
============
</TABLE>
18
<PAGE>
The Franklin Templeton Group
Literature Request - Call today for a free descriptive brochure and prospectus
on any of the funds listed below. The prospectus contains more complete
information, including fees, charges and expenses, and should be read carefully
before investing or sending money.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Templeton Funds Florida* Franklin Funds Seeking Franklin Templeton Global
American Trust Georgia Growth and Income Currency Funds
Americas Government Hawaii** Balance Sheet German Government
Securities Indiana Investment Fund Bond
Developing Markets Trust Kentucky Convertible Securities Fund Global Currency
Foreign Fund Louisiana Equity Income Fund High Income Currency
Global mirastructure Fund Maryland Global Utilities Fund Hard Currency
Global Opportunities Trust Massachusetts*** Income Fund
Greater European Fund Michigan*** MicroCap Value Franklin Money
Growth Fund Minnesota*** Natural Resources Fund Market Funds
Growth and Income Fund Missouri Premier Return Fund Money Fund
Global Bond Fund New Jersey Real Estate Securities Fund Federal Money Fund
Latin America Fund New York* Rising Dividends Fund Tax-Exempt Money
Pacific Growth North Carolina Strategic Income Fund Fund
Global Real Estate Fund Ohio*** Utilities Fund California Tax-Exempt
Global Smaller Oregon Value Money Fund
Company Fund Pennsylvania New York Tax-Exempt
World Fund Tennessee Franklin Funds Seeking Money Fund
Texas High Current Income IFT U.S. Treasury Money
Franklin Funds Seeking Virginia AGE High Income Fund Market Portfolio
Tax-Free Income Washington** Global Government
Federal Tax-Free Income Fund Franklin Fund for
Income Fund Franklin Funds Investment Grade Corporations
Federal Intermediate-Term Seeking Capital Growth Income Fund Corporate Qualified
Tax-Free Income Fund California Growth Fund U.S. Government Dividend Fund
High Yield Dyna Tech Fund Securities Fund
Insured Tax-Free Equity Fund Franklin Tax-Deferred
Income Fund*** Global Health Care Franklin Funds Seeking Annuity
Puerto Rico Tax-Free Gold Fund High Current Income and Franklin Valuemark
Income Fund Growth fund Stability of Principal Franklin Templeton
International Adjustable Rate Valuemark Income Plus
Franklin State-Specific Equity Fund Securities Fund (an immediate annuity)
Funds Seeking Tax-Free Japan Fund Adjustable U.S. Government
Income Small Cap Growth Fund Securities Fund
Alabama Short-Intermediate U.S.
Arizona* Government
Arkansas** Securities Fund
California*
Colorado Franklin Funds for
Connecticut Non-U.S. Investors
Tax-Advantaged High Yield
Securities Fund
Tax-Advantaged International
Bond Fund
Tax-Advantaged U.S.
Government Securities Fund
</TABLE>
Fund Information: 1-800/342-5236
Shareholder Services: 1-800/632-2301
To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
determined by the presence of a regular beeping tone.
*Two or more fund options available long-term portfolio, intermediate-term
portfolio, a portfolio of insured municipal securities, and a high yield
portfolio (CA).
**The fund may invest up to 100% of its assets in bonds that pay interest
subject to the federal alternative minimum tax.
***Portfolio of insured municipal securities.
<PAGE>
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
PRINCIPAL UNDERWRITER:
Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Shareholder Services
1-800-632-2301
Fund Information
1-800-342-5236
This report must be
preceded or accompanied
by the current
prospectus of the
Templeton Global
Opportunities Trust,
which contains more
complete information
including charges and
expenses.
Like any investment in
securities, the value
of the Fund's portfolio
will be subject to the
risk of loss from
market, currency,
economic, political,
and other factors, as
well as investment
decisions by the
investment manager
which will not always
be profitable or wise.
The Fund and its
investors are not
protected from such
losses by the
investment manager.
Therefore, investors
who cannot accept this
risk should not invest
in shares of the Fund.
To ensure the highest
quality of service,
telephone calls to or
from our service
departments may be
monitored, recorded,
and accessed. These
calls can be determined
by the presence of
a regular beeping tone.
TL415 S96 08/96
[RECYCLING LOGO APPEARS HERE]
TEMPLETON
GLOBAL
OPPORTUNITIES
TRUST
Semi-Annual Report
June 30, 1996
[FRANKLIN TEMPLETON LOGO APPEARS HERE]
