<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 Fund invests primarily
in common stock and it may also invest in preferred stocks and certain debt
securities, rated or unrated, such as convertible bonds and bonds selling at a
discount. It may invest up to 25% of its total net assets in developing markets.
- --------------------------------------------------------------------------------
February 15, 1996
Dear Shareholder:
We are pleased to bring you the annual report of the Templeton Global
Opportunities Trust for the period ended December 31, 1995.
During the past fiscal year, stock markets of developed nations such as the
United States, Switzerland, and Sweden posted strong gains, while a high degree
of volatility characterized many emerging markets. Much of this volatility was
precipitated by the devaluation of the Mexican peso in December 1994, which
caused the Mexican equity market to plummet. However, the ensuing negative
impact on emerging markets was not limited to Latin America, and these markets,
as measured by the unmanaged International Finance Corporation (IFC) Emerging
Markets Index, declined 8.34% during the year.
Despite having more than 20% of its assets invested in emerging markets, the
Fund's Class I shares posted a one-year total return of 12.87% as discussed in
the Performance Summary on page 5. Its benchmark, the unmanaged Morgan Stanley
Capital International (MSCI)
1
<PAGE>
World Index, produced a total return of 21.32% for the year. U.S. equities
represented only about 25% of the Fund's assets during 1995, which was less than
the 38.8% U.S. average weighting in the MSCI for the same period. In addition,
this index had almost no emerging market exposure.
Another factor that hurt the Fund's performance was its sizable holdings of
metal, paper and chemical companies. These cyclical shares did not perform well
during the latter half of 1995 due to earnings weakness and investor concerns
about the sustainability of economic growth in both the U.S. and Europe.
However, we believe that, as of December 31, 1995, the market had
overcompensated for these factors and, in our opinion, some of the European
cyclical shares we own may be particularly undervalued.
During the reporting period, the Fund's performance was aided by its absence
from the Japanese stock market. The Nikkei 225 Index posted a -2.9% total return
during the year, which greatly underperformed the MSCI. By not owning any shares
in this market, the Fund avoided a potential pitfall. During the second half of
1995, however, Japanese stocks posted a strong rebound that was offset by
extreme weakness in the value of the yen in relation to
- --------------------------------------------------------------------------------
Templeton Global Opportunities Trust
Geographic Distribution on 12/31/95
Based on Total Net Assets
[PIE CHART APPEARS HERE]
European Stocks 33.1%
Australian & New Zealand Stocks 4.5%
United States Stocks 21.5%
Latin American Stocks 5.9%
Asian Stocks 13.9%
Canadian Stocks 5.8%
Other Stocks 1.5%
Short-Term Obligations &
Other Net Assets 13.8%
the U.S. dollar. Because this rise in share prices made the world's most
expensive equities even more expensive (P/E ratios were well in excess of 100),
we do not expect to purchase any Japanese stocks until their valuations are much
lower.
We made few changes to the Fund's portfolio during the fiscal year. We did,
however, steadily reduce our holdings in shares whose consistent earnings growth
attracted favorable investor attention, and reinvested the proceeds into
equities that met our long-term value criteria. For example, we took profits by
selling some of our shares in European pharmaceutical companies such as Astra
and
2
<PAGE>
Medeva PLC, while maintaining a solid weighting in financial stocks,
particularly in Scandinavia where we believe the banking sector offered
extremely good values and attractive dividend yields. Although our overall
Scandinavian exposure was relatively heavy at the end of the year (15.8% of
total net assets), we are optimistic about long-term investment prospects.
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, and our
evaluations, conclusions and decisions regarding portfolio holdings, may change
in light of new circumstances as they 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.
Looking forward, we see the potential for a synchronized period of rising global
economic growth and have sought to position the portfolio to take advantage of
such developments. We have also endeavored to eliminate holdings in shares where
valuations no longer appear to be
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
Top 10 Industries on 12/31/95
As a Percentage of Total Net Assets
<TABLE>
<CAPTION>
% of Total
Industry Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Forest Products & Paper 12.6%
- --------------------------------------------------------------------------------
Banking 12.2%
- --------------------------------------------------------------------------------
Energy Sources 8.5%
- --------------------------------------------------------------------------------
Financial Services 8.0%
- --------------------------------------------------------------------------------
Telecommunications 6.4%
- --------------------------------------------------------------------------------
Insurance 6.0%
- --------------------------------------------------------------------------------
Metals & Mining 5.9%
- --------------------------------------------------------------------------------
Multi-Industry 3.4%
- --------------------------------------------------------------------------------
Utilities - Electrical & Gas 3.2%
- --------------------------------------------------------------------------------
Electrical & Electronics 3.0%
- --------------------------------------------------------------------------------
</TABLE>
extremely attractive. This strategy should hopefully yield attractive long-term
returns for our investors.
Of course, there are special risks involved with global investing related to
market, currency, economic, political and other factors. Developing markets
involve heightened risks related to these 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.
3
<PAGE>
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
Top 10 Holdings on 12/31/95
As a Percentage of Total Net Assets
<TABLE>
<CAPTION>
% of Total
Company, Industry, Country Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Transocean Drillings AS, Energy Equipment
& Services, Norway 2.5%
- --------------------------------------------------------------------------------
Newbridge Networks Corp., Data Processing
& Reproduction, Canada 2.3%
- --------------------------------------------------------------------------------
Peregrine Investment Holdings Ltd.,
Financial Services, Hong Kong 2.0%
- --------------------------------------------------------------------------------
Iberdrola SA, Utilities - Electrical & Gas,
Spain 1.9%
- --------------------------------------------------------------------------------
Banco Nacional de Mexico SA, 7.00%,
conv., 12/15/99, Banking, Mexico 1.7%
- --------------------------------------------------------------------------------
National Mutual Asia Ltd., Insurance,
Hong Kong 1.7%
- --------------------------------------------------------------------------------
Stadshypotek AB, Banking,
Sweden 1.7%
- --------------------------------------------------------------------------------
BBC Brown Boveri Ltd., br.,
Electrical & Electronics, Switzerland 1.6%
- --------------------------------------------------------------------------------
Cia de Inversionnes en Telecommunicaciones,
Telecommunications, Argentina 1.6%
- --------------------------------------------------------------------------------
Volvo AB, B, Automobiles,
Sweden 1.5%
- --------------------------------------------------------------------------------
</TABLE>
For a complete listing of portfolio holdings, please see page 11 of this
report.
We thank you for your participation in the Templeton Global Opportunities Trust
and welcome any comments or suggestions you may have.
Sincerely,
/s/ Martin L. Flanagan
Martin L. Flanagan
President
Templeton Global Opportunities Trust
/s/ Howard L. Leonard
Howard L. Leonard
Portfolio Manager
4
<PAGE>
Performance Summary
Class I Shares
The Templeton Global Opportunities Trust Class I shares reported a total return
of 12.87% for the one-year period ended December 31, 1995. 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 on page 6, the Fund's Class I shares delivered a cumulative
total return of more than 95% since inception on January 19, 1990.
During the reporting period, Class I shareholders received distributions of 15.5
cents ($0.155) per share in income dividends, 19.5 cents ($0.195) in short-term
capital gains, and 41 cents ($0.41) per share in long-term capital gains.
The price of the Fund's Class I shares, as measured by net asset value,
increased from $11.84 on December 31, 1994 to $12.57 on December 31, 1995. Of
course, past performance is not indicative 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.
The graph on page 6 shows how an investment in the Templeton Global
Opportunities Trust Class I shares, from January 19, 1990 to December 31, 1995,
has kept your purchasing power ahead of inflation, as measured by the Consumer
Price Index (CPI), during most of this time. It also shows that the Fund has
generally outperformed the unmanaged Morgan Stanley Capital International (MSCI)
World Index, which tracks 22 equity markets worldwide. Please remember that the
Fund's performance differs from that of the index because the index does not
contain cash (the Fund generally carries a certain percentage of cash at any
given time) and includes no sales charges or management expenses. Of course, one
cannot invest directly in an index.
5
<PAGE>
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL
OPPORTUNITIES TRUST - CLASS I
Total Return Index Comparison
$10,000 Investment (1/19/90-12/31/95)
[GRAPH APPEARS HERE SHOWING COMPARISON BETWEEN TEMPLETON GLOBAL OPPORTUNITIES
TRUST-CLASS I /1/, MSCI WORLD INDEX /2/ AND THE CPI /3/]
<TABLE>
<CAPTION>
1/90 12/95
--------- ---------
<S> <C> <C>
Templeton Global
Opportunities Trust-Class I $ 10,000 $ 18,415
MSCI World Index 10,000 15,383
Consumer Price Index 10,000 12,095
</TABLE>
1. Includes all sales charges and represents the change in value of an
investment over the period shown. Total return assumes reinvestment of dividends
and capital gains. Past performance is not predictive of future results.
2. Index of unmanaged and includes reinvested dividends.
3. Source: U.S. Bureau of Labor Statistics.
- --------------------------------------------------------------------------------
Templeton Global
Opportunities Trust
Periods ended December 31, 1995
Class I Shares
Since
Inception
One-Year Three-Year Five-Year (1/19/90)
Average Annual
Total Return/1/
Class I Shares 6.31% 12.10% 14.95% 10.81%
Cumulative
Total Return/2/
Class I Shares 12.87% 49.52% 112.99% 95.31%
1. Average annual total return represents the average annual change in value of
an investment over the periods indicated. These calculations include the maximum
5.75% initial sales charge. See note below.
2. Cumulative total return represents the change in value of an investment over
the periods indicated. These calculations do not include the current 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 returns would have been somewhat different 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 economic and political
climates of the countries where investments are made. 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. Thus, your
shares, when redeemed, may be worth more or less than their original cost. Past
performance is not predictive of future results.
- --------------------------------------------------------------------------------
6
<PAGE>
Performance Summary
Class II Shares
The Templeton Global Opportunities Trust Class II shares reported a cumulative
total return of 7.43% since inception on May 1, 1995. Cumulative total return
measures the change in value of an investment over the periods indicated. For
Class II shares, they do not include the deduction of the 1.00% initial sales
charge nor the maximum 1.00% contingent deferred 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.
During the reporting period, Class II shareholders received distributions of
11.85 cents ($0.1185) per share in income dividends, 16 cents ($0.16) in short-
term capital gains, and 34.5 cents ($0.345) in long-term capital gains.
The price of the Fund's Class II shares, as measured by net asset value,
increased from $12.26 at inception on May 1, 1995 to $12.53 on December 31,
1995. Of course, past performance is not indicative 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.
The graph on page 8 shows how an investment in the Templeton Global
Opportunities Trust Class II shares, from May 1, 1995 to December 31, 1995, has
kept your purchasing power ahead of inflation, as measured by the Consumer Price
Index (CPI). It also shows that, during most of this time, the Fund has
outperformed the unmanaged Morgan Stanley Capital International (MSCI) World
Index, which tracks 22 equity markets worldwide. Please remember that the Fund's
performance differs from that of the index because the index does not contain
cash (the Fund generally carries a certain percentage of cash at any given time)
and includes no sales charges or management expenses. Of course, one cannot
invest directly in an index.
7
<PAGE>
TEMPLETON GLOBAL
OPPORTUNITIES TRUST - CLASS II
Total Return Index Comparison
$10,000 Investment (5/1/95-12/31/95)
[COMPARISON GRAPH APPEARS HERE SHOWING COMPARISON BETWEEN TEMPLETON GLOBAL
OPPORTUNITIES TRUST-CLASS II /1/, MSCI WORLD INDEX /2/ AND THE CPI /3/]
<TABLE>
<CAPTION>
<S> <C> <C>
Templeton Global
Opportunities Trust-Class II
MSCI World Index
Consumer Price Index
</TABLE>
1. Includes all sales charges and represents the change in value of an
investment over the period shown. Total return assumes reinvestment of dividends
and capital gains. Past performance is not predictive of future results.
2. Index is unmanaged and includes reinvested dividends.
3. Source; U.S. Bureau of Labor Statistics.
Templeton Global
Opportunities Trust
Period ended December 31, 1995
Class II shares
Since
Inception
(5/1/95)
Aggregate Total Return/1/
Class II Shares 5.27%
Cumulative Total Return/2/
Class II Shares 7.43%
1. Aggregate total return represents the change in value of an investment over
the period indicated and reflects the deduction of the maximum 1.00% initial
sales charge and 1.00% contingent deferred sales charge (CDSC) applicable to
shares redeemed within the first 18 months of investment.
2. Cumulative total return represents the change in value of an investment over
the period indicated. These calculations do not include the deduction of the
1.00% initial sales charge nor the maximum 1.00% CDSC.
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 economic and political climates of the
countries where investments are made. 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. Thus, your shares,
when redeemed, may be worth more or less than their original cost. Past
performance is not predictive of future results.
8
<PAGE>
Templeton Global Opportunities Trust
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the year)
<TABLE>
<CAPTION>
CLASS I
------------------------------------------------
YEAR ENDED DECEMBER 31
------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year $ 11.84 $ 14.46 $ 10.75 $ 10.94 $ 8.36
-------- -------- -------- -------- --------
Income from investment
operations:
Net investment income .16 .09 .12 .14 .17
Net realized and unrealized
gain (loss) 1.33 (.63) 3.97 .61 2.59
-------- -------- -------- -------- --------
Total from investment
operations 1.49 (.54) 4.09 .75 2.76
-------- -------- -------- -------- --------
Distributions:
Dividends from net
investment income (.16) (.09) (.11) (.14) (.01)
Distributions from net
realized gains (.60) (1.99) (.27) (.65) (.17)
Amount in excess of net
realized gains -- -- -- (.15) --
-------- -------- -------- -------- --------
Total distributions (.76) (2.08) (.38) (.94) (.18)
-------- -------- -------- -------- --------
Change in net asset value .73 (2.62) 3.71 (.19) 2.58
-------- -------- -------- -------- --------
Net asset value, end of year $ 12.57 $ 11.84 $ 14.46 $ 10.75 $ 10.94
======== ======== ======== ======== ========
TOTAL RETURN* 12.87% (4.09)% 38.13% 6.85% 31.16%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(000) $510,777 $476,822 $410,747 $248,807 $200,848
Ratio of expenses to average
net assets 1.52% 1.53% 1.51% 1.63% 1.76%
Ratio of net investment
income to average net
assets 1.19% .71% 1.07% 1.36% 1.63%
Portfolio turnover rate 15.54% 37.31% 40.56% 22.03% 21.02%
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Templeton Global Opportunities Trust
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS II
-----------------
FOR THE PERIOD
MAY 1, 1995+
THROUGH
DECEMBER 31, 1995
-----------------
<S> <C>
Net asset value, beginning of period $12.26
------
Income from investment operations:
Net investment income .02
Net realized and unrealized loss .88
------
Total from investment operations .90
------
Distributions:
Dividends from net investment income (.12)
Distributions from net realized gains (.51)
------
Total distributions (.63)
------
Change in net asset value .27
------
Net asset value, end of year $12.53
======
TOTAL RETURN* 7.43%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000) $2,264
Ratio of expenses to average net assets 2.22%**
Ratio of net investment income to average net assets (.01)%**
Portfolio turnover rate 15.54%
</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.
10
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------------
COMMON STOCKS: 80.7%
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Automobiles: 1.9%
*Ciadea SA Arg. 399,999 $ 2,079,683
Volvo AB, B Swe. 384,000 7,862,159
------------
9,941,842
- -----------------------------------------------------------------------------------
Banking: 8.1%
Banco Ganadero SA, ADR C Col. 85,000 1,105,000
Banco Popular Espanol Sp. 35,000 6,454,658
Banco Portugues de
Investimento SA Port. 85,000 1,015,968
Ergo Bank SA Gr. 50,050 1,993,851
*Fokus Bank AS Nor. 1,000,000 5,399,346
Korea Long Term Credit
Bank Kor. 23,758 712,671
*Korea Long Term Credit
Bank, new Kor. 1,141 33,933
National Australia Bank,
Ltd. Aus. 424,214 3,815,101
*Philippine National
Bank Phil. 6,534 72,240
Shinhan Bank Co. Ltd. Kor. 65,000 1,456,687
*Shinhan Bank Co. Ltd.,
new Kor. 11,935 259,578
Signet Banking Corp. U.S. 116,800 2,774,000
Sparbanken Sverige AB,
A, 144A Swe. 601,700 7,654,352
Stadshypotek AB, A Swe. 276,800 5,542,292
Stadsyhpotek AS, A, 144A Swe. 149,800 2,999,405
------------
41,289,082
- -----------------------------------------------------------------------------------
Broadcasting & Publishing: 0.1%
Sing Tao Holdings Ltd. H.K. 1,911,800 741,726
- -----------------------------------------------------------------------------------
Building Materials & Components: 2.8%
Aker AS, A Nor. 404,700 5,366,950
Cementos Diamante, ADR,
144A Col. 174,000 3,124,360
*Owens Corning Fiberglas
Corp. U.S. 125,000 5,609,375
------------
14,100,685
- -----------------------------------------------------------------------------------
Business & Public Services: 1.2%
Laidlaw Inc., B Can. 600,000 6,043,292
- -----------------------------------------------------------------------------------
Chemicals: 1.1%
European Vinyls Corp.
EVC International NV Neth. 117,400 3,055,727
Gujarat Narmada Valley
Fertilizers Co. Ltd.,
GDR, 144A Ind. 438,600 2,741,250
------------
5,796,977
- -----------------------------------------------------------------------------------
Data Processing & Reproduction: 2.3%
*Newbridge Networks
Corp. Can. 281,100 11,630,513
- -----------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, December 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ---------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Electrical & Electronics: 3.0%
BBC Brown Boveri Ltd.,
br. Swtz. 7,248 $8,419,870
Great Wall Electronic
International Ltd. H.K. 5,576,000 411,034
Motorola Inc. U.S. 10,000 570,000
Philips Electronics NV Neth. 135,000 4,887,335
Scitex Corp. Ltd. Isrl. 74,200 1,010,975
----------
15,299,214
- ---------------------------------------------------------------------------------
Electronic Components & Instruments: 0.9%
Intel Corp. U.S. 80,000 4,540,000
- ---------------------------------------------------------------------------------
Energy Equipment & Services: 2.5%
*Transocean Drilling AS Nor. 750,000 12,965,536
- ---------------------------------------------------------------------------------
Energy Sources: 6.0%
Amerada Hess Corp. U.S. 50,000 2,650,000
Societe Elf Aquitane SA Fr. 55,000 4,052,277
Tosco Corp. U.S. 180,000 6,862,500
Total SA, B Fr. 100,000 6,749,030
Valero Energy Corp. U.S. 161,400 3,954,300
*Wascana Energy Inc. Can. 675,000 6,366,059
----------
30,634,166
- ---------------------------------------------------------------------------------
Financial Services: 7.1%
Alex Brown Inc. U.S. 80,000 3,360,000
Federal National
Mortgage Assn. U.S. 55,000 6,826,875
Govett & Co. Ltd. U.K. 1,243,900 4,462,370
Merrill Lynch & Co. Inc. U.S. 100,000 5,100,000
Morgan Stanley Group U.S. 83,000 6,691,875
Peregrine Investments
Holdings Ltd. H.K. 7,750,000 10,022,632
----------
36,463,752
- ---------------------------------------------------------------------------------
Food & Household Products: 0.5%
Amway Asia Pacific Ltd. U.S. 10,600 377,625
Cafe de Coral Holdings
Ltd. H.K. 7,599,000 1,729,614
*Grupo Embotellador de
Mexico SA, B Mex. 370,200 590,209
----------
2,697,448
- ---------------------------------------------------------------------------------
Forest Products & Paper: 12.6%
*Asia Pacific Resources
International, A Indo. 988,300 4,694,425
Assidomaen AB Swe. 219,900 4,767,157
Boise Cascade Corp. U.S. 100,000 3,462,500
Bowater Inc. U.S. 180,000 6,390,000
Carter Holt Harvey Ltd. N.Z. 3,084,890 6,655,250
</TABLE>
12
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, December 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ---------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Forest Products & Paper (cont.)
*Empaques Ponderosa SA
de CV, B Mex. 500,000 $ 898,250
Enso Gutzeit OY, R Fin. 625,000 4,163,699
Fletcher Challenge Ltd.
Forestry Division N.Z. 3,762,518 5,362,235
Georgia-Pacific Corp. U.S. 75,000 5,146,875
International Paper Co. U.S. 120,000 4,545,000
Mead Corp. U.S. 90,000 4,702,500
*Portucel Industrial
Empresa Product
Celulose, ADR, 144A Port. 975,500 5,767,947
PT Barito Pacific
Timber, fgn. Indo. 3,884,000 2,845,266
Rayonier Inc. U.S. 155,000 5,173,125
----------
64,574,229
- ---------------------------------------------------------------------------------
Health & Personal Care: 1.9%
Astra AB, B Swe. 100,000 3,959,382
Medeva PLC U.K. 999,800 4,161,175
Windmere Corp. U.S. 225,000 1,603,125
----------
9,723,682
- ---------------------------------------------------------------------------------
Industrial Components: 1.3%
Goodyear Tire & Rubber
Co. U.S. 150,000 6,806,250
- ---------------------------------------------------------------------------------
Insurance: 6.0%
Ace Ltd. Bmu. 171,000 6,797,250
American International
Group Inc. U.S. 75,000 6,937,500
GIO Austrailia Holdings
Ltd. Aus. 2,000,000 4,652,753
National Mutual Asia
Ltd. H.K. 9,612,000 8,701,455
Presidential Life Corp. U.S. 375,000 3,703,125
----------
30,792,083
- ---------------------------------------------------------------------------------
Leisure & Tourism: 1.0%
Kuoni Reisen Holding AG,
B Swtz. 3,180 5,100,130
- ---------------------------------------------------------------------------------
Machinery & Engineering: 2.9%
*Rauma, ADS Fin. 338,400 6,387,300
*Tampella AB (OY) Fin. 801,667 1,012,880
*Tampella AB (OY), 144A Fin. 688,333 869,686
VA Technologie AG, br.,
144A Aust. 52,300 6,632,387
----------
14,902,253
- ---------------------------------------------------------------------------------
Merchandising: 0.6%
*Cifra SA, B Mex. 501,000 520,806
*Waban Inc. U.S. 140,000 2,625,000
----------
3,145,806
- ---------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, December 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ----------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Metals & Mining: 5.9%
Aluminum Co. of America U.S. 70,000 $3,701,250
*Bohler Uddeholm AG,
144A Aust. 58,500 4,462,773
Companhia Siderurgica
Nacional Braz. 39,451,000 811,791
Elkem AS Nor. 323,800 3,680,649
*Inmet Mining Corp. Can. 800,000 5,860,162
Outokumpu OY, A Fin. 379,175 6,010,217
*Outokumpu OY, wts. Fin. 291,975 11,402
Pechiney SA, invt. ctf. Fr. 75,000 2,833,367
*Pechiney SA, wts. Fr. 75,000 153
Trelleborg AB, B Swe. 264,500 2,847,105
----------
30,218,869
- ----------------------------------------------------------------------------------
Multi-Industry: 2.3%
*Fotex First Hungarian-
American Photo-Service Hun. 775,200 449,291
*PT Bimantara Citra,
fgn. Indo. 8,975,000 7,457,905
Swire Pacific Ltd., A H.K. 500,000 3,879,728
----------
11,786,924
- ----------------------------------------------------------------------------------
Real Estate: 1.0%
PT Jaya Properties, fgn. Indo. 1,799,000 4,996,129
- ----------------------------------------------------------------------------------
Recreation, Other Consumer Goods: 0.6%
Yue Yuen Industrial
(Holdings) Ltd. H.K. 12,268,000 3,252,428
- ----------------------------------------------------------------------------------
Telecommunications: 0.9%
Telefonica de Espana SA Sp. 340,000 4,708,986
- ----------------------------------------------------------------------------------
Textiles & Apparel: 0.7%
*Dhan Fibres, 144A Pak. 13,575,000 3,451,695
- ----------------------------------------------------------------------------------
Transportation: 2.1%
Airborne Freight Corp. U.S. 200,000 5,325,000
Qantas Airways Ltd.,
ADR, 144A Aus. 142,700 2,381,306
Shanghai Hai Xing
Shipping Co., H Chn. 20,611,000 1,386,061
Singapore Bus Service
(1978) Ltd., fgn. Sing. 197,000 1,406,645
----------
10,499,012
- ----------------------------------------------------------------------------------
Utilities Electrical & Gas: 3.2%
Cia Energetica de Minas
Gerais, ADR Braz. 74,500 1,647,976
Consolidated Electric
Power Asia Ltd., ADR,
144A H.K. 220,000 3,973,750
Electricidad de Caracas Venz. 1,899,691 1,298,169
Iberdrola SA Sp. 1,050,000 9,608,409
----------
16,528,304
- ----------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, December 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Wholesale & International Trade: 0.2%
Sime Darby Hongkong Ltd. H.K. 1,127,000 $ 1,085,826
-----------
TOTAL COMMON STOCKS (cost $370,378,358) 413,716,839
- -----------------------------------------------------------------------------------------
PREFERRED STOCKS: 5.5%
- -----------------------------------------------------------------------------------------
ABN Amro NV, conv., pfd. Neth. 90,000 3,864,927
Cia de Inversiones en
Telecomunicaciones SA,
7.00%, 3/03/98 Arg. 138,707 8,045,006
Kaufman & Broad Home
Corp., B, conv., pfd. U.S. 77,000 1,145,375
Nacional Financiera SA,
11.25%, conv., pfd.,
05/15/98 Mex. 205,150 6,769,950
Philippine Long Distance
Telephone Co., 7.00%,
cnv., pfd. ser 3 Phil. 105,000 5,466,563
Telebras-
Telecomunicacoes
Brasileiras SA, pfd.,
ADR Braz. 65,000 3,079,375
-----------
TOTAL PREFERRED STOCKS (cost $20,457,059) 28,371,196
- -----------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY**
- -----------------------------------------------------------------------------------------
BONDS: 6.5%
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Banco Nacional de Mexico
SA, 7.00%, conv.,
12/15/99 Mex. 10,910,000 8,809,825
Brierley Investments
Ltd., 9.00%, conv.,
6/30/98 N.Z. 849,949 632,043
C.S. Holding Finance BV,
4.875%, conv., 11/19/02 Swtz. 2,800,000 4,424,000
Gujarat Ambuja Cements
Ltd., 3.50%, conv.,
6/30/99,144A Ind. 500,000 675,000
Indust.Credit & Invest.
Corp. India, 2.50%,
conv. 4/3/00 Ind. 5,610,000 4,642,275
Jardine Strategic
Holdings Ltd., 7.50%,
conv., 5/07/49 H.K. 5,054,000 5,508,860
SCICI Ltd., 3.50%,
conv., 4/01/04 Ind. 3,940,000 3,959,700
Softe SA, 4.25%, conv.,
7/30/98, 144A Itl. 6,400,000,000 4,644,105
-----------
TOTAL BONDS (cost $35,929,331) 33,295,808
- -----------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
Templeton Global Opportunities Trust
Investment Portfolio, December 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
INDUSTRY ISSUE COUNTRY LOCAL CURRENCY** VALUE
- ---------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 6.2% (cost $31,747,869)
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. Treasury Bills,
4.50% to 5.34% with
maturities to
2/22/96 U.S. 31,868,000 $ 31,766,944
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 98.9% (cost $458,512,617) 507,150,787
OTHER ASSETS, LESS LIABILITIES: 1.1% 5,890,227
------------
TOTAL NET ASSETS: 100.0% $513,041,014
============
</TABLE>
*NON-INCOME PRODUCING.
**CURRENCY OF COUNTRIES INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
Templeton Global Opportunities Trust
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
<TABLE>
<S> <C>
Assets:
Investments in securities, at value
(identified cost $458,512,617 ) $507,150,787
Cash 139,552
Receivables:
Investment securities sold 8,332,753
Fund shares sold 2,174,716
Dividends and interest 1,150,848
------------
Total assets 518,948,656
------------
Liabilities:
Payables:
Investment securities purchased 3,807,636
Fund shares redeemed 1,058,050
Accrued expenses 1,041,956
------------
Total liabilities 5,907,642
------------
Net assets, at value $513,041,014
============
Net assets consist of:
Undistributed net investment income $ 696,816
Net unrealized appreciation 48,638,170
Accumulated net realized gain 5,802,194
Net capital paid in on shares of beneficial interest 457,903,834
------------
Net assets, at value $513,041,014
============
Class I
Net asset value per share
($510,777,168 / 40,649,446 shares outstanding) $ 12.57
============
Maximum offering price
($12.57 / 94.25%) $ 13.34
============
Class II
Net asset value per share
($2,263,846 / 180,646 shares outstanding) $ 12.53
============
Maximum offering price
($12.53 / 99.0%) $ 12.66
============
</TABLE>
STATEMENT OF OPERATIONS
for the year ended December 31, 1995
<TABLE>
<S> <C> <C>
Investment income:
(net of $773,131 foreign taxes withheld)
Dividends $10,757,380
Interest 2,881,777
-----------
Total income $13,639,157
Expenses:
Management fees (Note 3) 4,042,935
Administrative fees (Note 3) 712,244
Distribution fees (Note 3)
Class I 1,259,580
Class II 8,135
Transfer agent fees (Note 3) 749,000
Custodian fees 241,936
Reports to shareholders 368,000
Audit fees 52,500
Legal fees (Note 3) 30,000
Registration and filing fees 105,000
Trustees' fees and expenses 55,500
Amortization of organization costs 9,230
Other 16,425
-----------
Total expenses 7,650,485
-----------
Net investment income 5,988,672
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 23,461,416
Foreign currency transactions (475,963)
-----------
22,985,453
Net unrealized appreciation on investments 30,619,809
-----------
Net realized and unrealized gain 53,605,262
-----------
Net increase in net assets resulting from operations $59,593,934
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
Templeton Global Opportunities Trust
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 5,988,672 $ 3,357,913
Net realized gain on investment and foreign
currency transactions 22,985,453 37,927,993
Net unrealized appreciation (depreciation) 30,619,809 (61,432,182)
------------ ------------
Net increase (decrease) in net assets result-
ing from operations 59,593,934 (20,146,276)
Distributions to shareholders:
From net investment income
Class I (5,674,514) (3,328,344)
Class II (19,476) --
From net realized gain
Class I (23,792,243) (67,015,314)
Class II (84,546) --
Capital share transactions (Note 2)
Class I 3,824,434 156,565,008
Class II 2,371,175 --
------------ ------------
Net increase in net assets 36,218,764 66,075,074
Net assets:
Beginning of year 476,822,250 410,747,176
------------ ------------
End of year $513,041,014 $476,822,250
============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
Templeton Global Opportunities Trust
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 following summarizes 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 its
taxable income to its shareholders. Therefore, no provision has been made for
income taxes.
D. Organization Costs:
Organization costs are being amortized on a straight line basis over five
years.
E. 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
are determined in accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are primarily due
to differing treatments for passive foreign investment companies held by the
Fund. Distributions are recorded on the ex-dividend date.
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Effective May 1, 1995, the Fund offered two classes of shares: Class I shares
and Class II shares. Shares of each class are identical except for their ini-
tial sales load, a contingent deferred sales charge on Class II shares, distri-
bution fees, and voting rights on matters affecting a single class. All Fund
shares outstanding before May 1, 1995 were designated as Class I shares. At De-
cember 31, 1995, there were an unlimited number of shares of beneficial inter-
est authorized for each class of shares ($0.01 par value). Transactions in the
Fund's shares were as follows:
19
<PAGE>
Templeton Global Opportunities Trust
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS I
----------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 5,371,682 $ 67,759,190 18,544,844 $ 250,256,892
Shares issued on rein-
vestment of distribu-
tions 2,184,017 26,504,181 4,980,654 62,368,806
Shares redeemed (7,163,041) (90,438,937) (11,680,771) (156,060,690)
---------- ------------ ----------- -------------
Net increase 392,658 $ 3,824,434 11,844,727 $ 156,565,008
========== ============ =========== =============
<CAPTION>
CLASS II
------------------------
FOR THE PERIOD
MAY 1, 1995 THROUGH
DECEMBER 31, 1995
------------------------
SHARES AMOUNT
---------- ------------
<S> <C> <C>
Shares sold 196,010 $ 2,576,233
Shares issued on rein-
vestment of distribu-
tions 6,729 81,954
Shares redeemed (22,093) (287,012)
---------- ------------
Net increase 180,646 $ 2,371,175
========== ============
</TABLE>
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 .25% is
paid to Dean Witter InterCapital, Inc., a subsidiary of Dean Witter Discover &
Co. for sub-advisory services. The Fund pays TGII monthly an administrative fee
of 0.15% per annum on 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 year ended December 31, 1995, FTD received net commissions of
$223,955 from the sale of the Fund's shares and FTIS received fees of $749,000.
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 December 31, 1995,
unreimbursed expenses amounted to $1,323,924. Class II shares redeemed within
18 months are subject to a contingent deferred sales charge. Contingent de-
ferred sales charges of $249 were paid to FTD for the year ended December 31,
1995.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received fees of $30,000 for the year ended December
31, 1995.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the
year ended December 31, 1995 aggregated $75,215,695 and $106,893,686, respec-
tively. The cost of securities for federal income tax purposes is $461,319,588.
Realized gains and losses are reported on an identified cost basis.
20
<PAGE>
Templeton Global Opportunities Trust
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
At December 31, 1995, the aggregate gross unrealized appreciation and deprecia-
tion of portfolio securities, based on cost for federal income tax purposes,
was as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 98,853,329
Unrealized depreciation (53,022,130)
------------
Net unrealized appreciation $ 45,831,199
============
</TABLE>
21
<PAGE>
Templeton Global Opportunities Trust
Independent Auditor's Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders
Templeton Global Opportunities Trust
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of Templeton Global Opportunities Trust as of Decem-
ber 31, 1995, and the related statement 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 the periods indicated in the ac-
companying financial statements. These financial statements and financial high-
lights are the responsibility of the Fund's management. Our responsibility is
to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of De-
cember 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant esti-
mates 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 Tem-
pleton Global Opportunities Trust as of December 31, 1995, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
/s/ McGladrey + Pullen, LLP
New York, New York January 31, 1996
22
<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.
Templeton Funds
Americas Government
Securities Fund
Developing Markets Trust
Foreign Fund
Global Infrastructure Fund
Global Opportunities Trust
Greater European Fund
Growth Fund
Growth and Income Fund
Income Fund
Latin American Fund
Real Estate
Securities Fund
Smaller Companies
Growth Fund
World Fund
Franklin Funds Seeking
Tax-Free Income
Federal Tax-Free
Income Fund
Federal Intermediate-Term
Tax-Free Income Fund
High Yield Tax-Free
Income Fund
Insured Tax-Free
Income Fund***
Puerto Rico Tax-Free
Income Fund
Franklin State-Specific
Funds Seeking Tax-Free Income
Alabama
Arizona*
Arkansas**
California*
Colorado
Connecticut
Florida*
Georgia
Hawaii**
Indiana
Kentucky
Louisiana
Maryland
Massachusetts***
Michigan***
Minnesota***
Missouri
New Jersey
New York*
North Carolina
Ohio***
Oregon
Pennsylvania
Tennessee
Texas
Virginia
Washington**
Franklin Funds
Seeking Capital Growth
California Growth Fund
DynaTech Fund
Equity Fund
Global Health
Care Fund
Gold Fund
Growth Fund
International
Equity Fund
Japan Fund
Pacific Growth Fund
Small Cap Growth Fund
Franklin Funds Seeking Growth and Income
Balance Sheet
Investment Fund
Convertible Securities Fund
Equity Income Fund
Global Utilities Fund
Income Fund
Natural Resources Fund
Premier Return Fund
Real Estate Securities Fund
Rising Dividends Fund
Strategic Income Fund
Utilities Fund
Franklin Funds Seeking
High Current Income
AGE High Income Fund
Global Government
Income Fund
Investment Grade
Income Fund
U.S. Government
Securities Fund
Franklin Funds Seeking
High Current Income and Stability of Principal
Adjustable Rate
Securities Fund
Adjustable U.S. Government Securities Fund
Short-Intermediate U.S. Government
Securities Fund
Franklin Funds for
Non-U.S. Investors
Tax-Advantaged High Yield Securities Fund
Tax-Advantaged International Bond Fund
Tax-Advantaged U.S. Government Securities Fund
Franklin Templeton Global Currency Funds
German Government
Bond Fund
Global Currency Fund
High Income Currency Fund
Hard Currency Fund
Franklin Money
Market Funds
Money Fund
Federal Money Fund
Tax-Exempt Money
Fund
California Tax-Exempt
Money Fund
New York Tax-Exempt
Money Fund
IFT U.S. Treasury Money
Market Portfolio
Franklin Fund for Corporations
Corporate Qualified
Dividend Fund
Franklin Tax-Deferred
Annuity
Franklin Valuemark
Franklin Templeton
Valuemark Income Plus
(an immediate annuity)
Fund Information: 1-800/292-9293
Account Services: 1-800/393-3001
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
Auditors
McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017-2416
PRINCIPAL UNDERWRITER:
Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Account Services
1-800-354-9191
Sales Information
1-800-292-9293
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 A95 02/96
LOGO
TEMPLETON
GLOBAL
OPPORTUNITIES
TRUST
Annual Report
December 31, 1995
LOGO
