PROSPECTUS
& APPLICATION
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
Templeton
Global
Opportunities Trust
MAY 1, 1996
as amended SEPTEMBER 1, 1996
Investment Strategy
Global Growth
This prospectus describes Templeton Global Opportunities Trust (the
"Fund"). It contains information you should know before investing in the
Fund. Please keep it for future reference.
THE FUND MAY INVEST UP TO 25% OF ITS TOTAL ASSETS IN HIGH-YIELD,
HIGH-RISK DEBT INSTRUMENTS THAT ARE PREDOMINANTLY SPECULATIVE. PLEASE SEE
"WHAT ARE THE FUND'S POTENTIAL RISKS?"
The Fund's SAI, dated May 1, 1996, as may be amended from time to time,
includes more information about the Fund's procedures and policies. It
has been filed with the SEC and is incorporated by reference into this
prospectus. For a free copy or a larger print version of this prospectus,
call 1-800/DIAL BEN or write the Fund at the address shown.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER
AGENCY OF THE U.S. GOVERNMENT. SHARES OF THE FUND INVOLVE INVESTMENT
RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
LIKE ALL MUTUAL FUNDS, THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SEC OR ANY STATE SECURITIES COMMISSION NOR HAS THE SEC
OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
This prospectus is not an offering of the securities herein
described in any state in which the offering is not authorized.
No sales representative, dealer, or other person is
authorized to give any information or make any representations
other than those contained in this prospectus. Further
information may be obtained from Distributors.
When reading this prospectus, you will see
certain terms in capital letters.
This means the term is explained
in our glossary section.
TEMPLETON TABLE OF CONTENTS
GLOBAL ABOUT THE FUND
OPPORTUNITIES Expense Summary......................... 2
TRUST Financial Highlights.................... 4
How Does the Fund Invest Its Assets?.... 5
----------------------------
MAY 1, 1996 What Are the Fund's Potential Risks?.... 10
AS AMENDED SEPTEMBER 1, 1996
Who Manages the Fund?................... 14
How Does the Fund Measure Performance?.. 17
How Is the Fund Organized?.............. 18
How Taxation Affects You and the Fund... 19
ABOUT YOUR ACCOUNT
How Do I Buy Shares?.................... 20
May I Exchange Shares for Shares of Another
Fund?................................... 26
How Do I Sell Shares?................... 30
What Distributions Might I Receive From the
Fund?................................... 32
Transaction Procedures and Special
Requirements ........................... 33
Services to Help You Manage Your Account 38
GLOSSARY
Useful Terms and Definitions............ 41
700 Central Avenue
St. Petersburg, Florida 33701
1-800/DIAL BEN
ABOUT THE FUND
EXPENSE SUMMARY
This table is designed to help you understand the costs of investing in the
Fund. It is based on the historical expenses of each class for the fiscal year
ended December 31, 1995. The Class II numbers are annualized.
Your actual expenses may vary.
<TABLE>
<CAPTION>
A. SHAREHOLDER TRANSACTION EXPENSES<W072> CLASS I CLASS II
<S> <C> <C>
Maximum Sales Charge Imposed on Purchases
(as a percentage of Offering Price) 5.75% 1.00%<W072>
Deferred Sales Charge<W072><W072><W072> NONE 1.00%
Exchange Fee (per transaction) $5.00* $5.00*
B. ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
Management Fees 0.80% 0.80%
Rule 12b-1 Fees 0.25%** 1.00%**
Other Expenses (audit, legal, business
management, transfer agent and custodian) 0.47% 0.47%
Total Fund Operating Expenses 1.52% 2.27%
===== =====
</TABLE>
C. 78EXAMPLE
Assume the annual return for each class is 5% and operating expenses are as
described above. For each $1,000 investment, you would pay the following
projected expenses if you sold your shares after the number of years shown.
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
---------- --------------- ---------------- ---------------- -----------
<S> <C> <C> <C> <C>
CLASS I $72*** $103 $136 $228
CLASS II $43 $80 $130 $269
</TABLE>
For the same Class II investment, you would pay projected expenses of $33
if you did not sell your shares at the end of the first year. Your
projected expenses for the remaining periods would be the same.
THIS IS JUST AN EXAMPLE. IT DOES NOT REPRESENT PAST OR FUTURE EXPENSES OR
RETURNS. ACTUAL EXPENSES AND RETURNS MAY BE MORE OR LESS THAN THOSE SHOWN.
The Fund pays its operating expenses. The effects of these expenses are
reflected in the Net Asset Value or dividends of each class and are not
directly charged to your account.
<W072>IF YOUR TRANSACTION IS PROCESSED THROUGH YOUR SECURITIES DEALER YOU MAY BE
CHARGED A FEE BY YOUR SECURITIES DEALER FOR THIS SERVICE.
<W072><W072>ALTHOUGH CLASS II HAS A LOWER FRONT-END SALES CHARGE THAN
CLASS I, ITS RULE 12B-1 FEES ARE HIGHER. OVER TIME YOU MAY PAY MORE FOR
CLASS II SHARES. PLEASE SEE "HOW DO I BUY SHARES? - DECIDING WHICH CLASS
TO BUY."
2 Templeton Global Opportunities Trust
<W072><W072><W072>A CONTINGENT DEFERRED SALES CHARGE OF 1% MAY APPLY TO CLASS I
PURCHASES OF $1 MILLION OR MORE IF YOU SELL THE SHARES WITHIN ONE YEAR AND
ANY CLASS II PURCHASE IF YOU SELL THE SHARES WITHIN 18 MONTHS. THERE IS NO
FRONT-END SALES CHARGE IF YOU INVEST $1 MILLION OR MORE IN CLASS I SHARES.
SEE "HOW DO I SELL SHARES? - CONTINGENT DEFERRED SALES CHARGE" FOR DETAILS.
*$5.00 FEE IS ONLY FOR MARKET TIMERS. WE PROCESS ALL OTHER EXCHANGES
WITHOUT A FEE.
**THE CLASS II FEES ARE ANNUALIZED. THE ACTUAL RULE 12B-1 FEES FOR THE
EIGHT MONTH PERIOD ENDED DECEMBER 31, 1995 WERE 0.64%. THE COMBINATION OF
FRONT-END SALES CHARGES AND RULE 12B-1 FEES COULD CAUSE LONG-TERM
SHAREHOLDERS TO PAY MORE THAN THE ECONOMIC EQUIVALENT OF THE MAXIMUM
FRONT-END SALES CHARGE PERMITTED UNDER THE NASD'S RULES.
***ASSUMES A CONTINGENT DEFERRED SALES CHARGE WILL NOT APPLY.
Templeton Global Opportunities Trust <W033> 3
FINANCIAL HIGHLIGHTS
This table summarizes the Fund's financial history. Except for the six months
ended June 30, 1996, the information has been audited by McGladrey & Pullen LLP,
the Fund's independent auditors. Their audit report covering each of the most
recent five years appears in the Fund's Annual Report to Shareholders for the
fiscal year ended December 31, 1995. The Annual Report to Shareholders also
includes more information about the Fund's performance. For a free copy, please
call Fund Information.
<TABLE>
<CAPTION>
CLASS I SHARES
YEAR ENDED DECEMBER 31 19961 1995 1994 1993 1992 1991 19902
-------------------------- -------- ------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
(For a share outstanding
throughout the
period)
Net asset value, $12.57 $ 11.84 $14.46 $10.75 $10.94 $ 8.36 $ 9.40
------ ------- ------ ------ ------ ------ ------
beginning of period
Income from investment
operations:
Net investment income .22 .16 .09 .12 .14 .17 .27
Net realized and 1.33 1.33 (.63) 3.97 .61 2.59 (1.04)
------ ------- ------- ------ ------ ------ -------
unrealized gain (loss)
Total from investment 1.55 1.49 (.54) 4.09 .75 2.76 (.77)
------ ------- ------- ------ ------ ------ -------
operations
Distributions:
Dividends from net (.03) (.16) (.09) (.11) (.14) (.01) (.27)
investment income
Distributions from net (.21) (.60) (1.99) (.27) (.65) (.17) --
realized gains
Distributions in -- -- -- -- (.15) -- --
----- ----- ----- ----- ------- ---- -----
excess of realized gains
Total distributions (.24) (.76) (2.08) (.38) (.94) (.18) (.27)
------- -------- ------- ------- ------- --------------
Change in net asset value 1.31 .73 (2.62) 3.71 (.19) 2.58 (1.04)
------ ------- ------- ------ ------- ------ -------
Net asset value, end of $13.88 $ 12.57 $11.84 $14.46 $10.75 $10.94 $ 8.36
====== ======= ====== ====== ====== ====== ======
period
TOTAL RETURN* 12.37% 12.87% (4.09)% 38.13% 6.85% 31.16% (8.19)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (000) $575,182 $510,777$476,822 $410,747 $248,807 $200,848$159,018
Ratio of expenses to
average 1.42%** 1.52% 1.53% 1.51% 1.63% 1.76% 1.64%**
net assets
Ratio of net investment
income to 3.26%** 1.19% 0.71% 1.07% 1.36% 1.63% 3.55%**
average net assets
Portfolio turnover rate 8.34% 15.54% 37.31% 40.56% 22.03% 21.02% 15.92%
Average commission rate
paid $ .0031
(per share)
</TABLE>
1FOR THE SIX MONTHS ENDED JUNE 30, 1996.
2FOR THE PERIOD FEBRUARY 28, 1990 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31,
1990.
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR PERIODS OF
LESS THAN ONE YEAR.
**ANNUALIZED.
Templeton Global Opportunities Trust <W033> 4
CLASS II SHARES
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 19961 19952
- --------------------------------------------------- ------------ ------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
Net asset value, beginning of period $ 12.53 $ 12.26
------- -------
Income from investment operations:
Net investment income .24 .02
Net realized and unrealized gain 1.26 .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 2.80%** (.01)%**
assets
Portfolio turnover rate 8.34% 15.54%
Average commission rate paid (per share) $ .0031
</TABLE>
1FOR THE SIX MONTHS ENDED JUNE 30, 1996.
2FOR THE PERIOD MAY 1, 1995 (COMMENCEMENT OF SALES) TO DECEMBER 31, 1995.
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS OR THE CONTINGENT
DEFERRED SALES CHARGE. NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
**ANNUALIZED.
HOW DOES THE FUND INVEST ITS ASSETS?
THE FUND'S INVESTMENT OBJECTIVE
The Fund's investment objective is long-term capital growth, which it seeks to
achieve through a flexible policy of investing in global securities. Any income
realized will be incidental. The objective is a fundamental policy of the Fund
and may not be changed without shareholder approval. Of course, there is no
assurance that the Fund's objective will be achieved.
Although the Fund invests primarily in common stock, it may also invest in
preferred stock and certain debt securities, rated or unrated, such as
convertible bonds, bonds selling at a discount and structured investments. The
Fund may invest in stocks and debt obligations of companies and debt obligations
of governments of any nation. Under normal circumstances, the Fund will invest
at least 65% of its total assets in issuers domiciled in at least three
different nations (one of which may be the U.S.).
Templeton Global Opportunities Trust <W033>5
As non-fundamental policies, no more than 5% of the Fund's assets will be
invested in structured investments and no more than 25% of the Fund's assets
will be invested in debt securities rated lower than Baa by Moody's or BBB by
S&P. The Fund will not invest in debt securities rated lower than Caa by Moody's
or CCC by S&P. Debt securities rated Caa by Moody's are of poor standing. Such
securities may be in default or there may be present elements of danger with
respect to principal or interest. Debt securities rated CCC by S&P are regarded,
on balance, as predominantly speculative with respect to the issuer's capacity
to pay interest and principal in accordance with the terms of the obligation.
While such securities may have some quality and protective characteristics,
these are outweighed by large uncertainties or major risk exposure to adverse
conditions. See "What Are the Fund's Potential Risks?" Certain debt securities
can provide the potential for capital appreciation based on various factors such
as changes in interest rates, economic and market conditions, improvement in an
issuer's ability to repay principal and pay interest, and ratings upgrades.
Additionally, convertible bonds offer the potential for capital appreciation
through the conversion feature, which enables the holder of the bonds to benefit
from increases in the market price of the securities into which they are
convertible.
Whenever, in the judgment of TICI or InterCapital, market or economic conditions
warrant, the Fund may, for temporary defensive purposes, invest without limit in
money market securities, denominated in dollars or in the currency of any
foreign country, issued by entities organized in the U.S. or any foreign
country. Such investments may include short-term (less than 12 months to
maturity) and medium-term (not greater than five years to maturity) obligations
issued or guaranteed by the U.S. government or the government of a foreign
country, their agencies or instrumentalities; finance company and corporate
commercial paper, and other short-term corporate obligations, in each case rated
Prime-1 by Moody's or A or better by S&P or, if unrated, of comparable quality
as determined by TICI or InterCapital; and repurchase agreements with banks and
broker-dealers with respect to such securities. In addition, for temporary
defensive purposes, the Fund may invest up to 25% of its total assets in
obligations of banks (including certificates of deposit, time deposits and
bankers' acceptances); provided that the Fund will limit its investment in time
deposits for which there is a penalty for early withdrawal to 10% of its total
assets.
As a diversified management investment company, the Fund may invest no more than
5% of its total assets in securities issued by any one company or
Templeton Global Opportunities Trust <W033>6
government, exclusive of U.S. government securities. Although the Fund may
invest up to 25% of its assets in a single industry, it has no present intention
of doing so. The Fund may not invest more than 5% of its assets in warrants
(exclusive of warrants acquired in units or attached to securities) or more than
10% of its assets in securities with a limited trading market. The investment
objective and policies described above, as well as the investment restrictions
set forth in the SAI, are fundamental policies except as otherwise indicated,
and cannot be changed without shareholder approval.
The Fund may also lend its portfolio securities and borrow money for investment
purposes (i.e., "leverage" its portfolio). In addition, the Fund may enter into
transactions in options on securities, securities indices and foreign
currencies, forward foreign currency exchange contracts, and futures contracts
and related options. When deemed appropriate by TICI or InterCapital, the Fund
may invest cash balances in repurchase agreements and other money market
investments to maintain liquidity in an amount to meet expenses or for
day-to-day operating purposes. In addition, when the Fund experiences large cash
inflows through issuance of new shares, and desirable investment securities
which are consistent with the Fund's investment objective are unavailable in
sufficient quantities or at reasonable prices, the Fund may invest in money
market instruments for a limited time pending availability of such securities.
These investment techniques are described below and under the heading "How Does
the Fund Invest Its Assets?" in the SAI.
The Fund does not intend to emphasize short-term trading profits and usually
expects to have a portfolio turnover rate not exceeding 100%.
TYPES OF SECURITIES THE FUND MAY INVEST IN
The Fund is authorized to use the various securities and investment techniques
described below. Although these strategies are regularly used by some investment
companies and other institutional investors in various markets, some of these
strategies cannot at the present time be used to a significant extent by the
Fund in some of the markets in which the Fund will invest and may not be
available for extensive use in the future.
REPURCHASE AGREEMENTS. When the Fund acquires a security from a bank or a
registered broker-dealer, it may simultaneously enter into a repurchase
agreement, wherein the seller agrees to repurchase the security at a specified
time and price. The repurchase price is in excess of the purchase price by an
amount which reflects an agreed-upon rate of return, which is not tied to the
coupon rate on the underlying security. Under the 1940 Act, repurchase
agreements are considered to be loans collateralized by the underlying security
and therefore will
Templeton Global Opportunities Trust <W033>7
be fully collateralized. However, if the seller should default on its obligation
to repurchase the underlying security, the Fund may experience delay or
difficulty in exercising its rights to realize upon the security and might incur
a loss if the value of the security declines, as well as incur disposition costs
in liquidating the security.
BORROWING. The Fund may borrow up to 10% of the value of its total assets from
banks to increase its holdings of portfolio securities. Under the 1940 Act, the
Fund is required to maintain continuous asset coverage of 300% with respect to
such borrowings and to sell (within three days) sufficient portfolio holdings to
restore such coverage if it should decline to less than 300% due to market
fluctuations or otherwise, even if such liquidations of the Fund's holdings may
be disadvantageous from an investment standpoint. Leveraging by means of
borrowing may exaggerate the effect of any increase or decrease in the value of
portfolio securities on the Fund's net asset value, and money borrowed will be
subject to interest and other costs (which may include commitment fees and/or
the cost of maintaining minimum average balances), which may or may not exceed
the income or gains received from the securities purchased with borrowed funds.
LOANS OF PORTFOLIO SECURITIES. The Fund may lend to broker-dealers portfolio
securities with an aggregate market value of up to one-third of its total assets
generally to generate income to offset Fund expenses. Such loans must be secured
by collateral (consisting of any combination of cash, U.S. government securities
or irrevocable letters of credit) in an amount at least equal (on a daily
marked-to-market basis) to the current market value of the securities loaned.
The Fund may terminate the loans at any time and obtain the return of the
securities loaned within five business days. The Fund will continue to receive
any interest or dividends paid on the loaned securities and will continue to
retain any voting rights with respect to the securities.
OPTIONS ON SECURITIES OR INDICES. The Fund may write (i.e., sell) covered put
and call options and purchase put and call options on securities or securities
indices that are traded on U.S. and foreign exchanges or in the over-the-counter
markets. An option on a security is a contract that permits the purchaser of the
option, in return for the premium paid, the right to buy a specified security
(in the case of a call option) or to sell a specified security (in the case of a
put option) from or to the writer of the option at a designated price during the
term of the option. An option on a securities index permits the purchaser of the
option, in return for the premium paid, the right to receive from the seller
cash equal to the difference between the closing price of the index and the
exercise price of the option. The Fund may write a call or put option only if
the option
Templeton Global Opportunities Trust <W033>8
is "covered." This means that so long as the Fund is obligated as the writer of
a call option, it will own the underlying securities subject to the call, or
hold a call at the same or lower exercise price, for the same exercise period,
and on the same securities as the written call.
A put is covered if the Fund maintains liquid assets with a value equal to the
exercise price in a segregated account, or holds a put on the same underlying
securities at an equal or greater exercise price. The value of the underlying
securities on which options may be written at any one time will not exceed 15%
of the total assets of the Fund. The Fund will not purchase put or call options
if the aggregate premium paid for such options would exceed 5% of its total
assets at the time of purchase.
FORWARD FOREIGN CURRENCY CONTRACTS AND OPTIONS ON FOREIGN CURRENCIES. The Fund
may enter into forward foreign currency exchange contracts ("forward contracts")
to attempt to minimize the risk to the Fund from adverse changes in the
relationship between the U.S. dollar and foreign currencies. A forward contract
is an obligation to purchase or sell a specific currency for an agreed price at
a future date which is individually negotiated and privately traded by currency
traders and their customers. The Fund may enter into a forward contract, for
example, when it enters into a contract for the purchase or sale of a security
denominated in a foreign currency in order to "lock in" the U.S. dollar price of
the security. The Fund will not enter into forward contracts if, as a result,
the Fund will have more than 20% of its total assets committed to the
consummation of such contracts. The Fund may also purchase and write put and
call options on foreign currencies for the purpose of protecting against
declines in the dollar value of foreign portfolio securities and against
increases in the U.S. dollar cost of foreign securities to be acquired.
FUTURES CONTRACTS. For hedging purposes only, the Fund may buy and sell
financial futures contracts, stock index futures contracts, foreign currency
futures contracts and options on any of the foregoing. A financial futures
contract is an agreement between two parties to buy or sell a specified debt
security at a set price on a future date. An index futures contract is an
agreement to take or make delivery of an amount of cash based on the difference
between the value of the index at the beginning and at the end of the contract
period. A futures contract on a foreign currency is an agreement to buy or sell
a specified amount of a currency for a set price on a future date.
When the Fund enters into a futures contract, it must make an initial deposit,
known as "initial margin," as a partial guarantee of its performance under the
contract. As the value of the security, index or currency fluctuates, either
party to the contract is required to make additional margin payments, known as
Templeton Global Opportunities Trust <W033>9
"variation margin," to cover any additional obligation it may have under the
contract. In addition, when the Fund enters into a futures contract, it will
segregate assets or "cover" its position in accordance with the 1940 Act. See
"How Does the Fund Invest Its Assets - Futures Contracts" in the SAI.
The Fund may not commit more than 5% of its total assets to initial margin
deposits on futures contracts and related options. The value of the underlying
securities on which futures contracts will be written at any one time will
not exceed 25% of the total assets of the Fund.
DEPOSITARY RECEIPTS. The Fund may purchase sponsored or unsponsored American
Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs") and Global
Depositary Receipts ("GDRs") (collectively, "depositary receipts"). ADRs are
depositary receipts typically issued by a U.S. bank or trust company which
evidence ownership of underlying securities issued by a foreign corporation.
EDRs and GDRs are typically issued by foreign banks or trust companies, although
they also may be issued by U.S. banks or trust companies, and evidence ownership
of underlying securities issued by either a foreign or a U.S. corporation.
Generally, depositary receipts in registered form are designed for use in the
U.S. securities market and depositary receipts in bearer form are designed for
use in securities markets outside the U.S. Depositary receipts may not
necessarily be denominated in the same currency as the underlying securities
into which they may be converted. Depositary receipts may be issued pursuant to
sponsored or unsponsored programs. In sponsored programs, an issuer has made
arrangements to have its securities traded in the form of depositary receipts.
In unsponsored programs, the issuer may not be directly involved in the creation
of the program. Although regulatory requirements with respect to sponsored and
unsponsored programs are generally similar, in some cases it may be easier to
obtain financial information from an issuer that has participated in the
creation of a sponsored program. Accordingly, there may be less information
available regarding issuers of securities underlying unsponsored programs and
there may not be a correlation between such information and the market value of
the depositary receipts. Depositary receipts also involve the risks of other
investments in foreign securities, as discussed below. For purposes of the
Fund's investment policies, the Fund's investments in depositary receipts will
be deemed to be investments in the underlying securities.
WHAT ARE THE FUND'S POTENTIAL RISKS?
You should understand that all investments involve risk and there can be no
guarantee against loss resulting from an investment in the Fund, nor can there
be any assurance that the Fund's investment objective will be attained. As with
Templeton Global Opportunities Trust <W033>10
any investment in securities, the value of, and income from, an investment in
the Fund can decrease as well as increase, depending on a variety of factors
which may affect the values and income generated by the Fund's portfolio
securities, including general economic conditions and market factors. In
addition to the factors which affect the value of individual securities, a
shareholder may anticipate that the value of the shares of the Fund will
fluctuate with movements in the broader equity and bond markets. A decline in
the stock market of any country in which the Fund is invested may also be
reflected in declines in the price of the shares of the Fund. Changes in
currency valuations will also affect the price of the shares of the Fund.
History reflects both decreases and increases in stock markets and currency
valuations, and these may reoccur unpredictably in the future. The value of debt
securities held by the Fund generally will vary inversely with changes in
prevailing interest rates. Additionally, investment decisions made by TICI or
InterCapital will not always be profitable or prove to have been correct.
The Fund has an unlimited right to purchase securities in any developed foreign
country and may invest up to 25% of its total assets in securities in developing
countries. Investors should consider carefully the substantial risks involved in
investing in foreign securities, which are in addition to the usual risks
inherent in domestic investments. There is the possibility of expropriation,
nationalization or confiscatory taxation, taxation of income earned in the
foreign nation (including withholding taxes on interest and dividends) or other
taxes imposed with respect to investments in the foreign nation, foreign
exchange controls (which may include suspension of the ability to transfer
currency from a given country), foreign investment controls on daily stock
market movements, default in foreign government securities, political or social
instability, or diplomatic developments which could affect investments in
securities of issuers in foreign nations. Some countries may withhold portions
of interest and dividends at the source. In addition, in many countries there is
less publicly available information about issuers than is available in reports
about companies in the U.S. Foreign companies are not generally subject to
uniform accounting, auditing and financial reporting standards, and auditing
practices and requirements may not be comparable to those applicable to U.S.
companies. The Fund may encounter difficulties or be unable to vote proxies,
exercise shareholder rights, pursue legal remedies, and obtain judgments in
foreign courts.
Brokerage commissions, custodial services, and other costs relating to
investment in foreign countries are generally more expensive than in the U.S.
Foreign securities markets also have different clearance and settlement
procedures, and in certain markets there have been times when settlements have
been unable to
Templeton Global Opportunities Trust <W033>11
keep pace with the volume of securities transactions, making it difficult to
conduct such transactions. Delays in settlement could result in temporary
periods when assets of the Fund are uninvested and no return is earned thereon.
The inability of the Fund to make intended security purchases due to settlement
problems could cause the Fund to miss attractive investment opportunities.
Inability to dispose of portfolio securities due to settlement problems could
result either in losses to the Fund due to subsequent declines in value of the
portfolio security or, if the Fund has entered into a contract to sell the
security, could result in possible liability to the purchaser.
In many foreign countries, there is less government supervision and regulation
of business and industry practices, stock exchanges, brokers and listed
companies than in the U.S. There is an increased risk, therefore, of uninsured
loss due to lost, stolen, or counterfeit stock certificates. In addition, the
foreign securities markets of many of the countries in which the Fund may invest
may also be smaller, less liquid and subject to greater price volatility than
those in the U.S. These risks are often heightened for investments in developing
markets, including certain Eastern European countries. See "What Are the Fund's
Potential Risks?" in the SAI.
Prior governmental approval of non-domestic investments may be required under
certain circumstances in some developing countries, and the extent of foreign
investment in domestic companies may be subject to limitation in other
developing countries. Foreign ownership limitations also may be imposed by the
charters of individual companies in developing countries to prevent, among other
concerns, violation of foreign investment limitations.
Repatriation of investment income, capital and proceeds of sales by foreign
investors may require governmental registration and/or approval in some
developing countries. The Fund could be adversely affected by delays in or
a refusal to grant any required governmental registration or approval for such
repatriation.
Further, the economies of developing countries generally are heavily dependent
upon international trade and, accordingly, have been and may continue to be
adversely affected by trade barriers, exchange controls, managed adjustments in
relative currency values and other protectionist measures imposed or negotiated
by the countries with which they trade. These economies also have been and may
continue to be adversely affected by economic conditions in the countries with
which they trade.
As a non-fundamental policy, the Fund will limit its investments in Russian
securities to 5% of its total assets. Russian securities involve additional
significant
Templeton Global Opportunities Trust <W033>12
risks, including political and social uncertainty (for example, regional
conflicts and risk of war), currency exchange rate volatility, pervasiveness of
corruption and crime in the Russian economic system, delays in settling
portfolio transactions and risk of loss arising out of Russia's system of share
registration and custody. For more information on these risks and other risks
associated with Russian securities, please see "What Are the Fund's Potential
Risks?" in the SAI.
The Fund will usually effect currency exchange transactions on a spot (i.e.,
cash) basis at the spot rate prevailing in the foreign exchange market. However,
some price spread on currency exchange (to cover service charges) will be
incurred when the Fund converts assets from one currency to another.
Leveraging by means of borrowing may exaggerate the effect of any increase or
decrease in the value of portfolio securities on the Fund's net asset value, and
money borrowed will be subject to interest and other costs (which may include
commitment fees and/or the cost of maintaining minimum average balances) which
may or may not exceed the income or gains received from the securities purchased
with borrowed funds.
Successful use of futures contracts and related options is subject to special
risk considerations. A liquid secondary market for any futures or options
contract may not be available when a futures position is sought to be closed. In
addition, there may be an imperfect correlation between movements in the
securities or foreign currency on which the futures or options contract is based
and movements in the securities or currency in the Fund's portfolio. Successful
use of futures or options contracts is further dependent on TICI's and/or
InterCapital's ability to correctly predict movements in the securities or
foreign currency markets and no assurance can be given that either's judgment
will be correct. Successful use of options on securities or securities indices
is subject to similar risk considerations.
The Fund may invest up to 25% of its total assets in high-yield, high-risk debt
instruments, commonly known as junk bonds, that are predominantly speculative.
Although they may offer higher yields than higher rated securities, low-rated
and unrated debt securities generally involve greater volatility of price and
risk of principal and income, including the possibility of default by, or
bankruptcy of, the issuers of the securities. In addition, the markets in which
low-rated and unrated debt securities are traded are more limited than those in
which higher rated securities are traded. The existence of limited markets for
particular securities may diminish the Fund's ability to sell the securities at
fair value either to meet redemption requests or to respond to a specific
economic event such as a deterioration in the creditworthiness of the issuer.
Reduced secondary market liquidity for certain low-rated or unrated debt
securities may
Templeton Global Opportunities Trust <W033>13
also make it more difficult for the Fund to obtain accurate market quotations
for the purposes of valuing the Fund's portfolio. Market quotations are
generally available on many low-rated or unrated securities only from a limited
number of dealers and may not necessarily represent firm bids of such dealers or
prices for actual sales.
Adverse publicity and investor perceptions, whether or not based on fundamental
analysis, may decrease the values and liquidity of low-rated debt securities,
especially in a thinly traded market. Analysis of the creditworthiness of
issuers of low-rated debt securities may be more complex than for issuers of
higher rated securities, and the ability of the Fund to achieve its investment
objective may, to the extent of investment in low-rated debt securities, be more
dependent upon such creditworthiness analysis than would be the case if the Fund
were investing in higher rated securities.
Low-rated debt securities may be more susceptible to real or perceived adverse
economic and competitive industry conditions than investment grade securities.
The prices of low-rated debt securities have been found to be less sensitive to
interest rate changes than higher rated investments, but more sensitive to
adverse economic downturns or individual corporate developments. A projection of
an economic downturn or of a period of rising interest rates, for example, could
cause a decline in low-rated debt securities prices because the advent of a
recession could lessen the ability of a highly leveraged company to make
principal and interest payments on its debt securities. If the issuer of
low-rated debt securities defaults, the Fund may incur additional expenses to
seek recovery.
There are further risk considerations, including possible losses through the
holding of securities in domestic and foreign custodian banks and depositories
and risks associated with borrowing, described elsewhere in the prospectus and
in the SAI.
WHO MANAGES THE FUND?
THE BOARD. The Board oversees the management of the Fund and elects its
officers. The officers are responsible for the Fund's day-to-day operations. The
Board also monitors the Fund to ensure no material conflicts exist between the
two classes of shares. While none is expected, the Board will act appropriately
to resolve any material conflict that may arise.
INVESTMENT MANAGER. TICI is the investment manager of the Fund. It is
wholly owned by Resources, a publicly owned company engaged in the
financial services industry through its subsidiaries. Charles B. Johnson
and Rupert H. Johnson, Jr. are the principal shareholders of Resources.
TICI and its affiliates serve as
Templeton Global Opportunities Trust <W033>14
advisers for a wide variety of public investment mutual funds and private
clients throughout the world, with total assets under management of over $147
billion. The Templeton organization has been investing globally since 1940. TICI
and its affiliates have offices in Argentina, Australia, Bahamas, Canada,
France, Germany, Hong Kong, India, Italy, Luxembourg, Poland, Russia, Scotland,
Singapore, South Africa, U.S., and Vietnam.
PORTFOLIO MANAGEMENT. The lead portfolio manager for the Fund since 1993
is Howard J. Leonard. Mr. Leonard is executive vice president of TICI. He
holds a BBA in finance/economics from the Temple University School of
Business Administration. Mr. Leonard is a Chartered Financial Analyst and
a member of the Financial Analysts of Philadelphia, the Financial
Analysts Federation and the International Society of Security Analysts.
Before joining the Templeton organization in 1989, Mr. Leonard was
director of investment research at First Pennsylvania Bank, where he was
responsible for equity and fixed-income research activities. Mr. Leonard
also worked previously at Provident National Bank as a security analyst
covering a variety of industries. As a portfolio manager and research
analyst, Mr. Leonard currently manages both institutional and mutual fund
accounts of global and international mandates. He has research
responsibility for the global forest products and investment management
industries, and also follows the following countries: Indonesia,
Switzerland, Brazil and India.
Gary P. Motyl and Mark R. Beveridge exercise secondary portfolio management
responsibilities for the Fund. Mr. Motyl is executive vice president of TICI. He
holds a BS in finance from Lehigh University and an MBA in finance from Pace
University. He is a Chartered Financial Analyst. Prior to joining the Templeton
organization in 1981, Mr. Motyl worked from 1974 to 1979 as a security analyst
with Standard & Poor's Corporation, and as a research analyst and portfolio
manager from 1979 to 1981 with Landmark First Mortgage Bank, where he had
responsibility for equity research and managed several pension and profit
sharing plans. His research responsibilities with Templeton include the global
automobile industry and country coverage of Germany. Mr. Beveridge is vice
president of TICI. He holds a BBA in finance from the University of Miami. He is
a Chartered Financial Analyst and a Chartered Investment Counselor, and a member
of the South Florida Society of Financial Analysts and the International Society
of Financial Analysts. Before joining the Templeton organization in 1985 as a
security analyst, Mr. Beveridge was a principal with a financial accounting
software firm based in Miami, Florida. He is currently a portfolio manager and
research analyst with responsibility for the industrial component and appli-
Templeton Global Opportunities Trust <W033>15
ances/household durables industries. He also has market coverage of
Argentina, Thailand and Denmark.
SERVICES PROVIDED BY TICI AND TGII. TICI manages the Fund's assets and makes its
investment decisions. TGII, the Fund's business manager, provides certain
administrative facilities and services for the Fund. Please see "Investment
Advisory and Other Services" and "Miscellaneous Information" in the SAI for
information on securities transactions and a summary of the Fund's Code of
Ethics.
SERVICES PROVIDED BY THE SUB-ADVISER. InterCapital is the sub-adviser of the
Fund. Incorporated in July 1992, InterCapital is wholly owned by Dean Witter,
Discover & Co. InterCapital assumed the investment advisory, management and
administrative activities previously performed by the InterCapital Division of
Dean Witter Reynolds Inc., a broker-dealer affiliate of InterCapital, during a
January 1993 internal reorganization. TICI entered into a sub-advisory agreement
with InterCapital, pursuant to which InterCapital provides TICI with investment
advisory assistance and portfolio management advice. InterCapital provides TICI
with analyses regarding economic and market conditions, asset allocation,
foreign currency matters and the advisability of entering into foreign exchange
contracts.
INVESTMENT MANAGEMENT AND BUSINESS MANAGEMENT FEES. For the fiscal year ended
December 31, 1995, the Fund paid 0.80% of its average daily net assets in
investment management fees and paid 0.14% of its average daily net assets in
business management fees. TICI paid InterCapital a monthly fee at an annual rate
of 0.25% of the Fund's average daily net assets for the fiscal year ended
December 31, 1995.
EXPENSES. For the fiscal year ended December 31, 1995, the total fund operating
expenses were 1.52% and 2.22% of average daily net assets of Class I shares and
Class II shares, respectively.
PORTFOLIO TRANSACTIONS. TICI tries to obtain the best execution on all
transactions. If TICI believes more than one broker or dealer can provide the
best execution, it may consider research and related services and the sale of
Fund shares when selecting a broker or dealer. Please see "How Does the Fund Buy
Securities For Its Portfolio?" in the SAI for more information.
THE RULE 12B-1 PLANS
Each class has a distribution plan or "Rule 12b-1 Plan" under which it may
reimburse Distributors or others for activities primarily intended to sell
shares of the class. These expenses may include, among others, distribution or
service fees paid to Securities Dealers or others who have executed a servicing
agreement
Templeton Global Opportunities Trust <W033>16
with the Fund, Distributors or its affiliates, printing prospectuses and reports
used for sales purposes, preparing and distributing sales literature and
advertisements, and a prorated portion of Distributors' overhead expenses.
Payments by the Fund under the Class I plan may not exceed 0.25% per year of
Class I's average daily net assets. Under the plan, costs and expenses not
reimbursed in any quarter (including costs and expenses not reimbursed because
they exceed the applicable limit of the plan) may be reimbursed in subsequent
quarters or years. Distributors has informed the Fund that costs and expenses of
Class I shares that may be reimbursable in future quarters or years were
$1,323,924 (0.26% of its net assets) at December 31, 1995.
Under the Class II plan, the Fund may pay Distributors up to 0.75% per year of
Class II's average daily net assets to pay Distributors or others for providing
distribution and related services and bearing certain Class II expenses. All
distribution expenses over this amount will be borne by those who have incurred
them. During the first year after a purchase of Class II shares, Distributors
may keep this portion of the Rule 12b-1 fees associated with the Class II
purchase.
The Fund may also pay a servicing fee of up to 0.25% per year of Class II's
average daily net assets under the Class II plan. This fee may be used to pay
Securities Dealers or others for, among other things, helping to establish and
maintain customer accounts and records, helping with requests to buy and sell
shares, receiving and answering correspondence, monitoring dividend payments
from the Fund on behalf of customers, and similar servicing and account
maintenance activities.
The Rule 12b-1 fees charged to each class are based only on the fees
attributable to that particular class. For more information, please see "The
Fund's Underwriter" in the SAI.
HOW DOES THE FUND MEASURE PERFORMANCE?
From time to time, each class of the Fund advertises its performance. The more
commonly used measures of performance are total return, current yield and
current distribution rate. Performance figures are usually calculated using the
maximum sales charge, but certain figures may not include the sales charge.
Total return is the change in value of an investment over a given period. It
assumes any dividends and capital gains are reinvested. Current yield for each
class shows the income per share earned by that class. The current distribution
rate shows the dividends or distributions paid to shareholders of a class. This
rate is usually computed by annualizing the dividends paid per share during a
Templeton Global Opportunities Trust <W033>17
certain period and dividing that amount by the current Offering Price of the
class. Unlike current yield, the current distribution rate may include income
distributions from sources other than dividends and interest received by the
Fund.
The investment results of each class will vary. Performance figures are always
based on past performance and do not indicate future results. For a more
detailed description of how the Fund calculates its performance figures, please
see "How Does the Fund Measure Performance?" in the SAI.
HOW IS THE FUND ORGANIZED?
The Fund is an open-end diversified management investment company, commonly
called a mutual fund. It was organized as a business trust under the laws of
Massachusetts on October 2, 1989, and is registered with the SEC under the 1940
Act. The Fund began offering two classes of shares on May 1, 1995: Templeton
Global Opportunities Trust - Class I and Templeton Global Opportunities Trust -
Class II. All shares purchased before that time are considered Class I shares.
Additional classes of shares may be offered in the future.
Shares of each class represent proportionate interests in the assets of the Fund
and have the same voting and other rights and preferences as the other class of
the Fund for matters that affect the Fund as a whole. For matters that only
affect one class, however, only shareholders of that class may vote. Each class
will vote separately on matters (1) affecting only that class, (2) expressly
required to be voted on separately by state business trust law, or (3) required
to be voted on separately by the 1940 Act. In the future, additional series may
be offered.
The Fund has noncumulative voting rights. This gives holders of more than 50% of
the shares voting the ability to elect all of the members of the Board. If this
happens, holders of the remaining shares voting will not be able to elect anyone
to the Board.
The Fund does not intend to hold annual shareholder meetings. It may hold a
special meeting, however, for matters requiring shareholder approval under the
1940 Act. The Board is required to call a meeting for the purpose of considering
the removal of a Board member if requested in writing to do so by the holders of
not less than 10% of the outstanding shares of the Fund. The 1940 Act requires
that we help you communicate with other shareholders in connection with electing
or removing members of the Board.
Templeton Global Opportunities Trust <W033>18
HOW TAXATION AFFECTS YOU AND THE FUND
The following discussion reflects some of the tax considerations that affect
mutual funds and their shareholders. For more information on tax matters
relating to the Fund and its shareholders, see "Additional Information on
Distributions and Taxes" in the SAI.
The Fund intends to elect to be treated and to qualify each year as a regulated
investment company under Subchapter M of the Code. A regulated investment
company generally is not subject to federal income tax on income and gains
distributed in a timely manner to its shareholders. Earnings of the Fund not
distributed on a timely basis in accordance with a calendar year distribution
requirement are subject to a nondeductible 4% excise tax. To prevent imposition
of this tax, the Fund intends to comply with this distribution requirement. The
Fund intends to distribute to shareholders substantially all of its net
investment income and realized capital gains, which generally will be taxable
income or capital gains in their hands. Distributions declared in October,
November or December to shareholders of record on a date in such month and paid
during the following January will be treated as having been received by
shareholders on December 31 in the year such distributions were declared. The
Fund will inform shareholders each year of the amount and nature of such income
or gains. Sales or other dispositions of Fund shares generally will give rise to
taxable gain or loss.
Templeton Global Opportunities Trust <W033>19
ABOUT YOUR ACCOUNT
HOW DO I BUY SHARES?
OPENING YOUR ACCOUNT
To open your account, contact your investment representative or complete and
sign the enclosed shareholder application and return it to the Fund with your
check. Please indicate which class of shares you want to buy. If you do not
specify a class, your purchase will be automatically invested in Class I shares.
MINIMUM
INVESTMENTS
- --------------------------------- --------------
To Open Your Account......... $ 100
To Add to Your Account....... $ 25
*We may waive these minimums for retirement plans. We may also refuse any
order to buy shares.
DECIDING WHICH CLASS TO BUY
You should consider a number of factors when deciding which class of shares to
buy. If you plan to buy $1 million or more in a single payment or you qualify to
buy Class I shares without a sales charge, you may not buy Class II shares.
Generally, you should consider buying Class I shares if:
you expect to invest in the Fund over the long term;
you qualify to buy Class I shares at a reduced sales charge; or
you plan to buy $1 million or more over time.
You should consider Class II shares if:
you expect to invest less than $50,000 in the Franklin Templeton Funds;
and
you plan to sell a substantial number of your shares within approximately six
years or less of your investment.
Class I shares are generally more attractive for long-term investors because of
Class II's higher Rule 12b-1 fees. These may accumulate over time to outweigh
the lower Class II front-end sales charge and result in lower income dividends
for Class II shareholders. If you qualify to buy Class I shares at a reduced
sales charge based upon the size of your purchase or through our Letter of
Intent or cumulative quantity discount programs, but plan to hold your shares
less than approximately six years, you should evaluate whether it is more
economical for you to buy Class I or Class II shares.
Templeton Global Opportunities Trust <W033>20
For purchases of $1 million or more, it is considered more beneficial for you to
buy Class I shares since there is no front-end sales charge, even though these
purchases may be subject to a Contingent Deferred Sales Charge. Any purchase of
$1 million or more is therefore automatically invested in Class I shares. You
may accumulate more than $1 million in Class II shares through purchases over
time, but if you plan to do this you should determine whether it would be more
beneficial for you to buy Class I shares through a Letter of Intent.
Please consider all of these factors before deciding which class of shares to
buy. There are no conversion features attached to either class of shares.
PURCHASE PRICE OF FUND SHARES
For Class I shares, the sales charge you pay depends on the dollar amount you
invest, as shown in the table below. The sales charge for Class II shares is 1%
and, unlike Class I, does not vary based on the size of your purchase.
<TABLE>
<CAPTION>
TOTAL SALES CHARGE AMOUNT PAID
AT A PERCENTAGE OF TO DEALER AS A
-----------------------
AMOUNT OF PURCHASE OFFERING NET AMOUNT PERCENTAGE OF
AT OFFERING PRICE PRICE INVESTED OFFERING PRICE
- -------------------------------------- --------- ------------- ----------------
<S> <C> <C> <C>
CLASS I
Less than $50,000................ 5.75% 6.10% 5.00%
$50,000 but less than $100,000... 4.50% 4.71% 3.75%
$100,000 but less than $250,000.. 3.50% 3.63% 2.80%
$250,000 but less than $500,000.. 2.50% 2.56% 2.00%
$500,000 but less than $1,000,000.... 2.00% 2.04% 1.60%
$1,000,000 or more*.............. None None None
CLASS II
Under $1,000,000*...................... 1.00% 1.01% 1.00%
</TABLE>
*A Contingent Deferred Sales Charge of 1% may apply to Class I purchases
of $1 million or more and any Class II purchase. Please see "How Do I
Sell Shares? - Contingent Deferred Sales Charge." Please also see "Other
Payments to Securities Dealers" below for a discussion of payments
Distributors may make out of its own resources to Securities Dealers for
certain purchases. Purchases of Class II shares are limited to purchases
below $1 million. Please see "Deciding Which Class to Buy."
SALES CHARGE REDUCTIONS AND WAIVERS
<W039> IF YOU QUALIFY TO BUY SHARES UNDER ONE OF THE SALES CHARGE REDUCTION OR
WAIVER CATEGORIES DESCRIBED BELOW, PLEASE INCLUDE A WRITTEN STATEMENT WITH
EACH PURCHASE ORDER EXPLAINING WHICH PRIVILEGE APPLIES. If you don't include
this statement, we cannot guarantee that you will receive the sales charge
reduction or waiver.
Templeton Global Opportunities Trust <W033>21
CUMULATIVE QUANTITY DISCOUNTS - CLASS I ONLY. To determine if you may pay a
reduced sales charge, the amount of your current Class I purchase is added to
the cost or current value, whichever is higher, of your Class I and Class II
shares in the Franklin Templeton Funds, as well as those of your spouse,
children under the age of 21 and grandchildren under the age of 21. If you are
the sole owner of a company, you may also add any company accounts, including
retirement plan accounts. Companies with one or more retirement plans may add
together the total plan assets invested in the Franklin Templeton Funds to
determine the sales charge that applies.
LETTER OF INTENT - CLASS I ONLY. You may buy Class I shares at a reduced sales
charge by completing the Letter of Intent section of the shareholder
application. A Letter of Intent is a commitment by you to invest a specified
dollar amount during a 13 month period. The amount you agree to invest
determines the sales charge you pay on Class I shares.
BY COMPLETING THE LETTER OF INTENT SECTION OF THE SHAREHOLDER APPLICATION, YOU
ACKNOWLEDGE AND AGREE TO THE FOLLOWING:
You authorize Distributors to reserve 5% of your total intended purchase in
Class I shares registered in your name until you fulfill your Letter.
You give Distributors a security interest in the reserved shares and appoint
Distributors as attorney-in-fact.
Distributors may sell any or all of the reserved shares to cover any
additional sales charge if you do not fulfill the terms of the Letter.
Although you may exchange your shares, you may not sell reserved shares until
you complete the Letter or pay the higher sales charge.
Your periodic statements will include the reserved shares in the total shares
you own. We will pay or reinvest dividend and capital gain distributions on the
reserved shares as you direct. Our policy of reserving shares does not apply to
certain retirement plans.
If you would like more information about the Letter of Intent privilege, please
see "How Do I Buy, Sell and Exchange Shares? - Letter of Intent" in the SAI or
call Shareholder Services.
GROUP PURCHASES - CLASS I ONLY. If you are a member of a qualified group, you
may buy Class I shares at the reduced sales charge that applies to the group as
a whole. The sales charge is based on the combined dollar value of the group
members' existing investments, plus the amount of the current purchase.
Templeton Global Opportunities Trust <W033>22
A qualified group is one that:
Was formed at least six months ago,
Has a purpose other than buying Fund shares at a discount,
Has more than 10 members,
Can arrange for meetings between our representatives and group members,
Agrees to include sales and other Franklin Templeton Fund materials in
publications and mailings to its members at reduced or no cost to
Distributors,
Agrees to arrange for payroll deduction or other bulk transmission of
investments to the Fund, and
Meets other uniform criteria that allow Distributors to achieve cost savings
in distributing shares.
SALES CHARGE WAIVERS. The Fund's sales charges (front-end and contingent
deferred) will not apply to certain purchases. For waiver categories 1, 2 or 3
below: (i) the distributions or payments must be reinvested within 365 days of
their payment date, and (ii) Class II distributions may be reinvested in either
Class I or Class II shares. Class I distributions may only be reinvested in
Class I shares.
The Fund's sales charges will not apply if you are buying Class I shares with
money from the following sources or Class II shares with money from the sources
in waiver categories 1 or 4:
1.Dividend and capital gain distributions from any Franklin Templeton Fund
or a REIT sponsored or advised by Franklin Properties, Inc.
2.Distributions from an existing retirement plan invested in the
Franklin Templeton Funds.
3.Annuity payments received under either an annuity option or from death
benefit proceeds, only if the annuity contract offers as an investment
option the Franklin Valuemark Funds, Templeton Variable Annuity Fund, the
Templeton Variable Products Series Fund, or the Franklin Government
Securities Trust. You should contact your tax advisor for information on
any tax consequences that may apply.
4.Redemptions from any Franklin Templeton Fund if you:
Originally paid a sales charge on the shares,
Reinvest the money within 365 days of the redemption date, and
Templeton Global Opportunities Trust <W033>23
Reinvest the money in the same class of shares.
An exchange is not considered a redemption for this privilege. The Contingent
Deferred Sales Charge will not be waived if the shares reinvested were subject
to a Contingent Deferred Sales Charge when sold. We will credit your account in
shares, at the current value, in proportion to the amount reinvested for any
Contingent Deferred Sales Charge paid in connection with the earlier redemption,
but a new Contingency Period will begin.
If you immediately placed your redemption proceeds in a Franklin Bank CD, you
may reinvest them as described above. The proceeds must be reinvested within 365
days from the date the CD matures, including any rollover.
5.Redemptions from other mutual funds
If you sold shares of a fund that is not a Franklin Templeton Fund within
the past 60 days, you may invest the proceeds without any sales charge if
(a) the investment objectives were similar to the Fund's, and (b) your
shares in that fund were subject to any front-end or contingent deferred
sales charges at the time of purchase. You must provide a copy of the
statement showing your redemption.
The Fund's sales charges will also not apply to Class I purchases by:
6.Trust companies and bank trust departments agreeing to invest in Franklin
Templeton Funds over a thirteen month period at least $1 million of assets
held in a fiduciary, agency, advisory, custodial or similar capacity and
over which the trust companies and bank trust departments or other plan
fiduciaries or participants, in the case of certain retirement plans, have
full or shared investment discretion. We will accept orders for these
accounts by mail accompanied by a check or by telephone or other means of
electronic data transfer directly from the bank or trust company, with
payment by federal funds received by the close of business on the next
business day following the order.
7.Group annuity separate accounts offered to retirement plans.
8.Retirement plans that (i) are sponsored by an employer with at least 100
employees, (ii) have plan assets of $1 million or more, or (iii) agree to
invest at least $500,000 in the Franklin Templeton Funds over a 13 month
period. Retirement plans that are not Qualified Retirement Plans or SEPS,
such as 403(b) or 457 plans, must also meet the requirements described
under "Group Purchases - Class I Only" above. However, any Qualified or
non-Qualified Retirement Plan account which was a shareholder in the Fund
on or before February 1, 1995, and which does not meet the other
Templeton Global Opportunities Trust <W033>24
requirements of this section, may purchase shares subject to a sales charge
of 4% of the Offering Price, 3.2% of which will be retained by Securities
Dealers.
9.An Eligible Governmental Authority. Please consult your legal and
investment advisors to determine if an investment in the Fund is
permissible and suitable for you and the effect, if any, of payments by
the Fund on arbitrage rebate calculations.
10.Broker-dealers and qualified registered investment advisors who have
entered into a supplemental agreement with Distributors for their clients
who are participating in comprehensive fee programs, sometimes known as
wrap fee programs.
11.Registered Securities Dealers and their affiliates, for their
investment accounts only
12.Current employees of Securities Dealers and their affiliates and their
family members, as allowed by the internal policies of their employer
13.Officers, trustees, directors and full-time employees of the Franklin
Templeton Funds or the Franklin Templeton Group, and their family members,
consistent with our then-current policies
14.Investment companies exchanging shares or selling assets pursuant to
a merger, acquisition or exchange offer
15.Accounts managed by the Franklin Templeton Group
16.Certain unit investment trusts and their holders reinvesting
distributions from the trusts
HOW DO I BUY SHARES IN CONNECTION WITH RETIREMENT PLANS?
Your individual or employer-sponsored retirement plan may invest in the Fund.
Plan documents are required for all retirement plans. Trust Company can provide
the plan documents for you and serve as custodian or trustee.
Trust Company can provide you with brochures containing important information
about its plans. To establish a Trust Company retirement plan, you will need an
application other than the one included in this prospectus. For a retirement
plan brochure or application, please call our Retirement Plans Department.
Templeton Global Opportunities Trust <W033>25
Please consult your legal, tax or retirement plan specialist before choosing a
retirement plan. Your investment representative or advisor can help you make
investment decisions within your plan.
OTHER PAYMENTS TO SECURITIES DEALERS
The payments below apply to Securities Dealers who initiate and are responsible
for Class II purchases and certain Class I purchases made without a sales
charge. A Securities Dealer may only receive one of the following payments for
each qualifying purchase. The payments described below are paid by Distributors
or one of its affiliates, at its own expense, and not by the Fund or its
shareholders.
1. Securities Dealers may receive up to 1% of the purchase price for Class II
purchases. During the first year after the purchase, Distributors may keep a
part of the Rule 12b-1 fees associated with that purchase.
2. Securities Dealers will receive up to 1% of the purchase price for Class I
purchases of $1 million or more.
3. Securities Dealers may, in the sole discretion of Distributors, receive up to
1% of the purchase price for Class I purchases made under waiver category 8
above.
4. Securities Dealers may receive up to 0.25% of the purchase price for Class I
purchases made under waiver categories 6 and 9 above.
PLEASE SEE "HOW DO I BUY, SELL AND EXCHANGE SHARES - OTHER PAYMENTS TO
SECURITIES DEALERS" IN THE SAI FOR ANY BREAKPOINTS THAT MAY APPLY.
Securities Dealers may receive additional compensation from Distributors or an
affiliated company in connection with selling shares of the Franklin Templeton
Funds. Compensation may include financial assistance for conferences,
shareholder services, automation, sales or training programs, or promotional
activities. Registered representatives and their families may be paid for travel
expenses, including lodging, in connection with business meetings or seminars.
In some cases, this compensation may only be available to Securities Dealers
whose representatives have sold or are expected to sell significant amounts of
shares. Securities Dealers may not use sales of the Fund's shares to qualify for
this compensation if prohibited by the laws of any state or self-regulatory
agency, such as the NASD.
MAY I EXCHANGE SHARES FOR SHARES OF ANOTHER FUND?
We offer a wide variety of funds. If you would like, you can move your
investment from your Fund account to an existing or new account in another
Templeton Global Opportunities Trust <W033>26
Franklin Templeton Fund (an "exchange"). Because it is technically a sale
and a purchase of shares, an exchange is a taxable transaction.
If you own Class I shares, you may exchange into any of our money funds except
Franklin Templeton Money Fund II ("Money Fund II"). Money Fund II is the only
money fund exchange option available to Class II shareholders. Unlike our other
money funds, shares of Money Fund II may not be purchased directly and no drafts
(checks) may be written on Money Fund II accounts.
Before making an exchange, please read the prospectus of the fund you are
interested in. This will help you learn about the fund and its rules and
requirements for exchanges. For example, some Franklin Templeton Funds do not
accept exchanges and others may have different investment minimums. Some
Franklin Templeton Funds do not offer Class II shares.
METHOD STEPS TO FOLLOW
- --------------------------- -------------------------------------------------
BY MAIL 1. Send us written instructions signed by all
account owners
2. Include any outstanding share certificates
for the shares you're exchanging
- --------------------------- -------------------------------------------------
BY PHONE Call Shareholder Services or TeleFACTS(R)
- --------------------------- -------------------------------------------------
If you do not want the ability to exchange by
phone to apply to your account, please let us
know.
- --------------------------- -------------------------------------------------
THROUGH YOUR DEALER Call your investment representative
- --------------------------- -------------------------------------------------
Please refer to "Transaction Procedures and Special Requirements" for other
important information on how to exchange shares.
WILL SALES CHARGES APPLY TO MY EXCHANGE?
You generally will not pay a front-end sales charge on exchanges. If you have
held your shares less than six months, however, you will pay the percentage
difference between the sales charge you previously paid and the applicable sales
charge of the new fund. If you have never paid a sales charge on your shares
because, for example, they have always been held in a money fund, you will pay
the Fund's applicable sales charge no matter how long you have held your shares.
These charges may not apply if you qualify to buy shares without a sales charge.
We will not impose a Contingent Deferred Sales Charge when you exchange shares.
Any shares subject to a Contingent Deferred Sales Charge at the time of
Templeton Global Opportunities Trust <W033>27
exchange, however, will remain so in the new fund. See the discussion on
Contingent Deferred Sales Charges below and under "How Do I Sell Shares?"
CONTINGENT DEFERRED SALES CHARGE - CLASS I. For accounts with Class I shares
subject to a Contingent Deferred Sales Charge, shares are exchanged into the new
fund in the order they were purchased. If you exchange Class I shares into one
of our money funds, the time your shares are held in that fund will not count
towards the completion of any Contingency Period.
CONTINGENT DEFERRED SALES CHARGE - CLASS II. For accounts with Class II shares
subject to a Contingent Deferred Sales Charge, shares are exchanged into the new
fund proportionately based on the amount of shares subject to a Contingent
Deferred Sales Charge and the length of time the shares have been held. For
example, suppose you own $1,000 in shares that have never been subject to a
CDSC, such as shares from the reinvestment of dividends and capital gains ("free
shares"), $2,000 in shares that are no longer subject to a CDSC because you have
held them for longer than 18 months ("matured shares"), and $3,000 in shares
that are still subject to a CDSC ("CDSC liable shares"). If you exchange $3,000
into a new fund, $500 will be exchanged from free shares, $1,000 from matured
shares, and $1,500 from CDSC liable shares.
Likewise, CDSC liable shares purchased at different times will be exchanged into
a new fund proportionately. For example, assume you purchased $1,000 in shares 3
months ago, 6 months ago, and 9 months ago. If you exchange $1,500 into a new
fund, $500 will be exchanged from shares purchased at each of these three
different times.
While Class II shares are exchanged proportionately, they are redeemed in the
order purchased. In some cases, this means exchanged shares may be CDSC liable
even though they would not be subject to a Contingent Deferred Sales Charge if
they were sold. We believe the proportional method of exchanging Class II shares
more closely reflects the expectations of Class II shareholders if shares are
sold during the Contingency Period. The tax consequences of a sale or exchange
are determined by the Code and not by the method used by the Fund to transfer
shares.
If you exchange your Class II shares for shares of Money Fund II, the time your
shares are held in that fund will count towards the completion of any
Contingency Period.
Templeton Global Opportunities Trust <W033>28
EXCHANGE RESTRICTIONS
Please be aware that the following restrictions apply to exchanges:
You may only exchange shares within the SAME CLASS.
The accounts must be identically registered. You may exchange shares
from a Fund account requiring two or more signatures into an identically
registered money fund account requiring only one signature for all
transactions. PLEASE NOTIFY US IN WRITING IF YOU DO NOT WANT THIS OPTION
TO BE AVAILABLE ON YOUR ACCOUNT(S). Additional procedures may apply.
Please see "Transaction Procedures and Special Requirements."
Trust Company IRA or 403(b) retirement plan accounts may exchange shares as
described above. Restrictions may apply to other types of retirement plans.
Please contact our Retirement Plans Department for information on exchanges
within these plans.
The fund you are exchanging into must be eligible for sale in your state.
We may modify or discontinue our exchange policy if we give you 60 days'
written notice.
Your exchange may be restricted or refused if you: (i) request an exchange
out of the Fund within two weeks of an earlier exchange request, (ii) exchange
shares out of the Fund more than twice in a calendar quarter, or (iii)
exchange shares equal to at least $5 million, or more than 1% of the Fund's
net assets. Shares under common ownership or control are combined for these
limits. If you exchange shares as described in this paragraph, you will be
considered a Market Timer. Each exchange by a Market Timer, if accepted, will
be charged $5.00. Some of our funds do not allow investments by Market Timers.
Because excessive trading can hurt Fund performance and shareholders, we may
refuse any exchange purchase if (i) we believe the Fund would be harmed or
unable to invest effectively, or (ii) the Fund receives or anticipates
simultaneous orders that may significantly affect the Fund.
Templeton Global Opportunities Trust <W033>29
HOW DO I SELL SHARES?
You may sell (redeem) your shares at any time.
METHOD STEPS TO FOLLOW
- ------------------------------- ---------------------------------------------
BY MAIL 1. Send us written instructions signed by
all account owners
2. Include any outstanding share
certificates for the shares you are
selling
3. Provide a signature guarantee if required
4. Corporate, partnership and trust
accounts may need to send additional
documents. Accounts under court
jurisdiction may have additional
requirements.
- ------------------------------- ---------------------------------------------
BY PHONE Call Shareholder Services (Only available if you have completed and
sent to us the telephone redemption agreement included with this prospectus)
Telephone requests will be accepted:
If the request is $50,000 or less.
Institutional accounts may exceed $50,000 by
completing a separate agreement. Call
Institutional Services to receive a copy.
If there are no share certificates issued for
the shares you want to sell or you have
already returned them to the Fund
Unless you are selling shares in a Trust
Company retirement plan account
Unless the address on your account was
changed by phone within the last 30 days
- ------------------------------- ---------------------------------------------
THROUGH YOUR DEALER Call your investment representative
- ------------------------------- ---------------------------------------------
We will send your redemption check within seven days after we receive your
request in proper form. If you sell your shares by phone, the check may only be
made payable to all registered owners on the account and sent to the address of
record. We are not able to receive or pay out cash in the form of currency.
If you sell shares you just purchased with a check or draft, we may delay
sending you the proceeds for up to 15 days or more to allow the check or draft
to clear. A certified or cashier's check may clear in less time.
Under unusual circumstances, we may suspend redemptions or postpone payment for
more than seven days as permitted by federal securities law.
Templeton Global Opportunities Trust <W033>30
Please refer to "Transaction Procedures and Special Requirements" for other
important information on how to sell shares.
TRUST COMPANY RETIREMENT PLAN ACCOUNTS
To comply with IRS regulations, you need to complete additional forms before
selling shares in a Trust Company retirement plan account. Tax penalties
generally apply to any distribution from these plans to a participant under age
59 1/2, unless the distribution meets an exception stated in the Code. To obtain
the necessary forms, please call our Retirement Plans Department.
CONTINGENT DEFERRED SALES CHARGE
A Contingent Deferred Sales Charge may apply to Class I purchases of $1 million
or more if you sell all or a portion of the shares within one year and any Class
II purchase if you sell the shares within 18 months. The charge is 1% of the
value of the shares sold or the Net Asset Value at the time of purchase,
whichever is less. Distributors keeps the charge to recover payments made to
Securities Dealers.
We will first redeem shares not subject to the charge in the following order:
1) A calculated number of shares equal to the capital appreciation on
shares held less than the Contingency Period,
2) Shares purchased with reinvested dividends and capital gain
distributions, and
3) Shares held longer than the Contingency Period.
We then redeem shares subject to the charge in the order they were purchased.
Unless otherwise specified, when you request to sell a stated DOLLAR AMOUNT, we
will redeem additional shares to cover any Contingent Deferred Sales Charge. For
requests to sell a stated NUMBER OF SHARES, we will deduct the amount of the
Contingent Deferred Sales Charge, if any, from the sale proceeds.
WAIVERS. We waive the Contingent Deferred Sales Charge for:
Exchanges
Account fees
Sales of shares purchased pursuant to a sales charge waiver
Redemptions by the Fund when an account falls below the minimum
required account size
Redemptions following the death of the shareholder or beneficial owner
Templeton Global Opportunities Trust <W033>31
Redemptions through a systematic withdrawal plan set up before February
1, 1995
Redemptions through a systematic withdrawal plan set up on or after February
1, 1995, up to 1% a month of an account's Net Asset Value (3% quarterly, 6%
semiannually or 12% annually). For example, if you maintain an annual balance
of $1 million in Class I shares, you can withdraw up to $120,000 annually
through a systematic withdrawal plan free of charge. Likewise, if you maintain
an annual balance of $10,000 in Class II shares, $1,200 may be withdrawn
annually free of charge.
Distributions from individual retirement plan accounts due to death or
disability or upon periodic distributions based on life expectancy
Tax-free returns of excess contributions from employee benefit plans
Distributions from employee benefit plans, including those due to
termination or plan transfer
WHAT DISTRIBUTIONS MIGHT I RECEIVE FROM THE FUND?
Dividends and capital gains are calculated and distributed the same way for each
class. The amount of any income dividends per share will differ, however,
generally due to the difference in the Rule 12b-1 fees of each class.
The Fund intends to pay a dividend at least annually representing substantially
all of its net investment income and any net realized capital gains. Dividend
payments are not guaranteed, are subject to the Board's discretion and may vary
with each payment. THE FUND DOES NOT PAY "INTEREST" OR GUARANTEE ANY FIXED RATE
OF RETURN ON AN INVESTMENT IN ITS SHARES.
If you buy shares shortly before the record date, please keep in mind that any
distribution will lower the value of the Fund's shares by the amount of the
distribution.
DISTRIBUTION OPTIONS
You may receive your distributions from the Fund in any of these ways:
1. BUY ADDITIONAL SHARES OF THE FUND - You may buy additional shares of the same
class of the Fund (without a sales charge or imposition of a Contingent Deferred
Sales Charge) by reinvesting capital gain distributions, dividend distributions,
or both. If you own Class II shares, you may also reinvest your distributions in
Class I shares of the Fund. This is a convenient way to accumulate additional
shares and maintain or increase your earnings base.
Templeton Global Opportunities Trust <W033>32
2. BUY SHARES OF OTHER FRANKLIN TEMPLETON FUNDS - You may direct your
distributions to buy the same class of shares of another Franklin Templeton Fund
(without a sales charge or imposition of a Contingent Deferred Sales Charge). If
you own Class II shares, you may also direct your distributions to buy Class I
shares of another Franklin Templeton Fund. Many shareholders find this a
convenient way to diversify their investments.
3. RECEIVE DISTRIBUTIONS IN CASH - You may receive dividends and/or capital gain
distributions in cash. If you have the money sent to another person or to a
checking account, you may need a signature guarantee.
TO SELECT ONE OF THESE OPTIONS, PLEASE COMPLETE THE SHAREHOLDER APPLICATION
INCLUDED WITH THIS PROSPECTUS OR TELL YOUR INVESTMENT REPRESENTATIVE WHICH
OPTION YOU PREFER. IF YOU DO NOT SELECT AN OPTION, WE WILL AUTOMATICALLY
REINVEST DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS IN THE SAME CLASS OF THE FUND.
For Trust Company retirement plans, special forms are required to receive
distributions in cash. You may change your distribution option at any time by
notifying us by mail or phone. Please allow at least seven days prior to the
record date for us to process the new option.
TRANSACTION PROCEDURES AND SPECIAL REQUIREMENTS
HOW AND WHEN SHARES ARE PRICED
The Fund is open for business each day the NYSE is open. We determine the Net
Asset Value per share of each class as of the scheduled close of the NYSE,
generally 4:00 p.m. Eastern time. You can find the prior day's closing Net Asset
Value and Offering Price for each class in many newspapers.
The Net Asset Value of all outstanding shares of each class is calculated on a
pro rata basis. It is based on each class' proportionate participation in the
Fund, determined by the value of the shares of each class. Each class, however,
bears the Rule 12b-1 fees payable under its Rule 12b-1 plan. To calculate Net
Asset Value per share of each class, the assets of each class are valued and
totaled, liabilities are subtracted, and the balance, called net assets, is
divided by the number of shares of the class outstanding. The Fund's assets are
valued as described under "How Are Fund Shares Valued?" in the SAI.
THE PRICE WE USE WHEN YOU BUY OR SELL SHARES
You buy shares at the Offering Price of the class you wish to purchase, unless
you qualify to buy shares at a reduced sales charge or with no sales charge. The
Offering Price of each class is based on the Net Asset Value per share of the
Templeton Global Opportunities Trust <W033>33
class and includes the maximum sales charge. We calculate it to two
decimal places using standard rounding criteria. You sell shares at Net
Asset Value.
We will use the Net Asset Value next calculated after we receive your
transaction request in proper form. If you buy or sell shares through your
Securities Dealer, however, we will use the Net Asset Value next calculated
after your Securities Dealer receives your request, which is promptly
transmitted to the Fund. Your redemption proceeds will not earn interest between
the time we receive the order from your dealer and the time we receive any
required documents.
PROPER FORM
An order to buy shares is in proper form when we receive your signed shareholder
application and check. Written requests to sell or exchange shares are in proper
form when we receive written instructions signed by all registered owners, with
a signature guarantee if necessary. We must also receive any outstanding share
certificates for those shares.
WRITTEN INSTRUCTIONS
Written instructions must be signed by all registered owners. To avoid any delay
in processing your transaction, they should include:
<T033> Your name,
<T033> The Fund's name,
<T033> The class of shares,
<T033> A description of the request,
<T033> For exchanges, the name of the fund you're exchanging into,
<T033> Your account number,
<T033> The dollar amount or number of shares, and
<T033> A telephone number where we may reach you during the day, or in
the evening if preferred.
SIGNATURE GUARANTEES
For our mutual protection, we require a signature guarantee in the following
situations:
1) You wish to sell over $50,000 worth of shares,
Templeton Global Opportunities Trust <W033>34
2) You want the proceeds to be paid to someone other than the
registered owners,
3) The proceeds are not being sent to the address of record,
preauthorized bank account, or preauthorized brokerage firm account,
4) We receive instructions from an agent, not the registered owners,
5) We believe a signature guarantee would protect us against potential
claims based on the instructions received.
A signature guarantee verifies the authenticity of your signature and may be
obtained from certain banks, brokers or other eligible guarantors. YOU SHOULD
VERIFY THAT THE INSTITUTION IS AN ELIGIBLE GUARANTOR PRIOR TO SIGNING. A
NOTARIZED SIGNATURE IS NOT SUFFICIENT.
SHARE CERTIFICATES
We will credit your shares to your Fund account. We do not issue share
certificates unless you specifically request them. This eliminates the costly
problem of replacing lost, stolen or destroyed certificates. If a certificate is
lost, stolen or destroyed, you may have to pay an insurance premium of up to 2%
of the value of the certificate to replace it.
Any outstanding share certificates must be returned to the Fund if you want to
sell or exchange those shares or if you would like to start a systematic
withdrawal plan. The certificates should be properly endorsed. You can do this
either by signing the back of the certificate or by completing a share
assignment form. For your protection, you may prefer to complete a share
assignment form. In this case, you should send the certificate and assignment
form in separate envelopes.
TELEPHONE TRANSACTIONS
You may initiate many transactions by phone. Please refer to the sections of
this prospectus that discuss the transaction you would like to make or call
Shareholder Services.
We may only be liable for losses resulting from unauthorized telephone
transactions if we do not follow reasonable procedures designed to verify the
identity of the caller. When you call, we will request personal or other
identifying information, and will also record calls. For your protection, we may
delay a transaction or not implement one if we are not reasonably satisfied that
telephone instructions are genuine. If this occurs, we will not be liable for
any loss.
Templeton Global Opportunities Trust <W033>35
If our lines are busy or you are otherwise unable to reach us by phone, you may
wish to ask your investment representative for assistance or send written
instructions to us, as described elsewhere in this prospectus. If you are unable
to execute a transaction by telephone, we will not be liable for any loss.
TRUST COMPANY RETIREMENT PLAN ACCOUNTS. You may not sell shares or change
distribution options on Trust Company retirement plans by phone. While you may
exchange shares of Trust Company IRA and 403(b) retirement accounts by phone,
certain restrictions may be imposed on other retirement plans.
To obtain any required forms or more information about distribution or transfer
procedures, please call our Retirement Plans Department.
ACCOUNT REGISTRATIONS AND REQUIRED DOCUMENTS
When you open an account, you need to tell us how you want your shares
registered. How you register your account will affect your ownership rights and
ability to make certain transactions. If you have questions about how to
register your account, you should consult your investment representative or
legal advisor. Please keep the following information in mind when registering
your account.
JOINT OWNERSHIP. If you open an account with two or more owners, we register the
account as "joint tenants with rights of survivorship" unless you tell us
otherwise. An account registered as "joint tenants with rights of survivorship"
is shown as "Jt Ten" on your account statement. For any account with two or more
owners, all owners must sign instructions to process transactions and changes to
the account. Even if the law in your state says otherwise, you will not be able
to change owners on the account unless all owners agree in writing. If you would
like another person or owner to sign for you, please send us a current power of
attorney.
GIFTS AND TRANSFERS TO MINORS. You may set up a custodial account for a minor
under your state's Uniform Gifts/Transfers to Minors Act. Other than this form
of registration, a minor may not be named as an account owner.
TRUSTS. If you register your account as a trust, you should have a valid written
trust document to avoid future disputes or possible court action over who owns
the account.
REQUIRED DOCUMENTS. For corporate, partnership and trust accounts, please send
us the following documents when you open your account. This will help avoid
delays in processing your transactions while we verify who may sign on the
account.
Templeton Global Opportunities Trust <W033>36
TYPE OF ACCOUNT DOCUMENTS REQUIRED
- ------------------------------- ----------------------------------------------
CORPORATION Corporate Resolution
- ------------------------------- ----------------------------------------------
PARTNERSHIP 1. The pages from the partnership agreement
that identify the general partners, or
2. A certification for a partnership
agreement
- ------------------------------- ----------------------------------------------
TRUST 1. The pages from the trust document that
identify the trustees, or
2. A certification for trust
- ------------------------------- ----------------------------------------------
STREET OR NOMINEE ACCOUNTS. If you have Fund shares held in a "street" or
"nominee" name account with your Securities Dealer, you may transfer the shares
to the street or nominee name account of another Securities Dealer. Both dealers
must have an agreement with Distributors or we will not process the transfer.
Contact your Securities Dealer to initiate the transfer. We will process the
transfer after we receive authorization in proper form from your delivering
Securities Dealer. Accounts may be transferred electronically through the NSCC.
For accounts registered in street or nominee name, we may take instructions
directly from the Securities Dealer or your nominee.
ELECTRONIC INSTRUCTIONS. If there is a Securities Dealer or other representative
of record on your account, we are authorized to use and execute electronic
instructions. We can accept electronic instructions directly from your dealer or
representative without further inquiry. Electronic instructions may be processed
through the services of the NSCC, which currently include the NSCC's
"Networking," "Fund/SERV," and "ACATS" systems, or through Frank-lin/Templeton's
PCTrades II System.
TAX IDENTIFICATION NUMBER
For tax reasons, we must have your correct Social Security or tax identification
number on a signed shareholder application or applicable tax form. Federal law
requires us to withhold 31% of your taxable distributions and sale proceeds if
(i) you have not furnished a certified correct taxpayer identification number,
(ii) you have not certified that withholding does not apply, (iii) the IRS or a
Securities Dealer notifies the Fund that the number you gave us is incorrect, or
(iv) you are subject to backup withholding.
We may refuse to open an account if you fail to provide the required tax
identification number and certifications. We may also close your account if the
IRS notifies us that your tax identification number is incorrect. If you
complete
Templeton Global Opportunities Trust <W033>37
an "awaiting TIN" certification, we must receive a correct tax identification
number within 60 days of your initial purchase to keep your account open.
KEEPING YOUR ACCOUNT OPEN
Due to the relatively high cost of maintaining a small account, we may close
your account if the value of your shares is less than $50. We will only do this
if the value of your account fell below this amount because you voluntarily sold
your shares and your account has been inactive (except for the reinvestment of
distributions) for at least six months. Before we close your account, we will
notify you and give you 30 days to increase the value of your account to $100.
SERVICES TO HELP YOU MANAGE YOUR ACCOUNT
AUTOMATIC INVESTMENT PLAN
Our automatic investment plan offers a convenient way to invest in the Fund.
Under the plan, you can have money transferred automatically from your checking
account to the Fund each month to buy additional shares. If you are interested
in this program, please refer to the account application included with this
prospectus or contact your investment representative. The market value of the
Fund's shares may fluctuate and a systematic investment plan such as this will
not assure a profit or protect against a loss. You may discontinue the program
at any time by notifying Investor Services by mail or phone.
SYSTEMATIC WITHDRAWAL PLAN
Our systematic withdrawal plan allows you to sell your shares and receive
regular payments from your account on a monthly, quarterly, semiannual or annual
basis. The value of your account must be at least $5,000 and the minimum payment
amount for each withdrawal must be at least $50. For retirement plans subject to
mandatory distribution requirements, the $50 minimum will not apply.
If you would like to establish a systematic withdrawal plan, please complete the
systematic withdrawal plan section of the shareholder application included with
this prospectus and indicate how you would like to receive your payments. You
may choose to direct your payments to buy the same class of shares of another
Franklin Templeton Fund or have the money sent directly to you, to another
person, or to a checking account.
Templeton Global Opportunities Trust <W033>38
You will generally receive your payment by the last business day of the month in
which a payment is scheduled. When you sell your shares under a systematic
withdrawal plan, it is a taxable transaction.
Because of the front-end sales charge, you may not want to set up a
systematic withdrawal plan if you plan to buy shares on a regular basis.
Shares sold under the plan may also be subject to a Contingent Deferred
Sales Charge. Please see "Contingent Deferred Sales Charge" under "How Do
I Sell Shares?"
You may discontinue a systematic withdrawal plan, change the amount and schedule
of withdrawal payments, or suspend one payment by notifying us in writing at
least seven business days before the end of the month preceding a scheduled
payment. Please see "How Do I Buy, Sell and Exchange Shares? -Systematic
Withdrawal Plan" in the SAI for more information.
TELEFACTS(R)
From a touch-tone phone, you may call our TeleFACTS system (day or night) at
1-800/247-1753 to:
<T033> obtain information about your account;
<T033> obtain price and performance information about any Franklin
Templeton Fund;
<T033> exchange shares between identically registered Franklin
accounts; and
<T033> duplicate statements and deposit slips for Franklin accounts.
You will need the code number for each class to use TeleFACTS. The code numbers
for Class I and Class II are 415 and 515.
STATEMENTS AND REPORTS TO SHAREHOLDERS
We will send you the following statements and reports on a regular basis:
<T033> Confirmation and account statements reflecting transactions in your
account, including additional purchases and dividend reinvestments. PLEASE
VERIFY THE ACCURACY OF YOUR STATEMENTS WHEN YOU RECEIVE THEM.
<T033> Financial reports of the Fund will be sent every six months. To reduce
Fund expenses, we attempt to identify related shareholders within a household
and send only one copy of a report. Call Fund Information if you would like an
additional free copy of the Fund's financial reports or an interim quarterly
report.
Templeton Global Opportunities Trust <W033>39
INSTITUTIONAL ACCOUNTS
Additional methods of buying, selling or exchanging shares of the Fund may be
available to institutional accounts. For further information, call Institutional
Services.
AVAILABILITY OF THESE SERVICES
The services above are available to most shareholders. If, however, your shares
are held by a financial institution, in a street name account, or networked
through the NSCC, the Fund may not be able to offer these services directly to
you. Please contact your investment representative.
WHAT IF I HAVE QUESTIONS ABOUT MY ACCOUNT?
If you have any questions about your account, you may write to Investor
Services, P.O. Box 33030, St. Petersburg, FL 33733-8030. The Fund and
Distributors are also located at this address. You may also contact us by
phone at one of the numbers listed below.
<TABLE>
<CAPTION>
HOURS OF OPERATION (EASTERN
DEPARTMENT NAME TELEPHONE NO. TIME)(MONDAY THROUGH FRIDAY)
- --------------------------- ------------------ -----------------------------
<S> <C> <C>
Shareholder Services 1-800/632-2301 8:30 a.m. to 8:00 p.m.
Dealer Services 1-800/524-4040 8:30 a.m. to 8:00 p.m.
Fund Information 1-800/DIAL BEN 8:30 a.m. to 11:00 p.m.
(1-800/342-5236) 11:30 a.m. to 8:00 p.m.
(Saturday)
Retirement Plans 1-800/527-2020 8:30 a.m. to 8:00 p.m.
Institutional Services 1-800/321-8563 9:00 a.m. to 8:00 p.m.
TDD (hearing impaired) 1-800/851-0637 8:30 a.m. to 8:00 p.m.
</TABLE>
Your phone call may be monitored or recorded to ensure we provide you
with high quality service. You will hear a regular beeping tone if your
call is being recorded.
Templeton Global Opportunities Trust <W033>40
GLOSSARY
USEFUL TERMS AND DEFINITIONS
1933 ACT - Securities Act of 1933, as amended.
1940 ACT - Investment Company Act of 1940, as amended.
BOARD - The Board of Trustees of the Fund.
CD - Certificate of deposit.
CLASS I AND CLASS II - The Fund offers two classes of shares, designated "Class
I" and "Class II." The two classes have proportionate interests in the Fund's
portfolio. They differ, however, primarily in their sales charge structures and
12b-1 plans.
CODE - Internal Revenue Code of 1986, as amended.
CONTINGENCY PERIOD - For Class I shares, the 12 month period during which a
Contingent Deferred Sales Charge may apply. For Class II shares, the contingency
period is 18 months. Regardless of when during the month you purchased shares,
they will age one month on the last day of that month and each following month.
CONTINGENT DEFERRED SALES CHARGE (CDSC) - A sales charge of 1% that may apply if
you sell your shares within the Contingency Period.
DISTRIBUTORS - Franklin/Templeton Distributors, Inc., the Fund's
principal underwriter. The SAI lists the officers and Board members who
are affiliated with Distributors. See "Officers and Trustees."
ELIGIBLE GOVERNMENTAL AUTHORITY - any state or local government or any
instrumentality, department, authority or agency thereof that has determined the
Fund is a legally permissible investment and that can only buy shares of the
Fund without paying sales charges.
FRANKLIN FUNDS - the mutual funds in the Franklin Group of Funds(R) except
Franklin Valuemark Funds and the Franklin Government Securities Trust.
FRANKLIN TEMPLETON FUNDS - the Franklin Funds and the Templeton Funds.
FRANKLIN TEMPLETON GROUP - Franklin Resources, Inc., a publicly owned holding
company, and its various subsidiaries.
INTERCAPITAL - Dean Witter InterCapital, Inc., the Fund's sub-adviser, located
at Two World Trade Center, New York, NY 10048.
Templeton Global Opportunities Trust <W033>41
INVESTOR SERVICES - Franklin/Templeton Investor Services, Inc., the Fund's
transfer agent and shareholder servicing agent.
IRS - Internal Revenue Service.
LETTER - Letter of Intent.
MARKET TIMER(S) - Market Timers generally include market timing or allocation
services, accounts administered so as to buy, sell or exchange shares based on
predetermined market indicators, or any person or group whose transactions seem
to follow a timing pattern.
MOODY'S - Moody's Investors Service, Inc.
NASD - National Association of Securities Dealers, Inc.
NET ASSET VALUE (NAV) - the value of a mutual fund is determined by deducting
the fund's liabilities from the total assets of the portfolio. The net asset
value per share is determined by dividing the net asset value of the fund by the
number of shares outstanding.
NSCC - National Securities Clearing Corporation.
NYSE - New York Stock Exchange, Inc.
OFFERING PRICE - The public offering price is based on the Net Asset Value per
share of the class and includes the front-end sales charge. The maximum
front-end sales charge is 5.75% for Class I and 1% for Class II.
QUALIFIED RETIREMENT PLAN(S) - an employer sponsored pension or profit-sharing
plan that qualifies under section 401 of the Code. Examples include 401(k),
money purchase pension, profit sharing and defined benefit plans.
REIT - Real Estate Investment Trust.
RESOURCES - Franklin Resources, Inc.
SAI - Statement of Additional Information.
S&P - Standard & Poor's Corporation.
SEC - U.S. Securities and Exchange Commission.
SECURITIES DEALER - a financial institution that, either directly or through
affiliates, has an agreement with Distributors to handle customer orders and
accounts with the Fund. This reference is for convenience only and does not
indicate a legal conclusion of capacity.
SEP - an employer sponsored simplified employee pension plan established under
section 408(k) of the Code.
Templeton Global Opportunities Trust <W033>42
TELEFACTS(R) - FRANKLIN TEMPLETON'S AUTOMATED CUSTOMER SERVICING SYSTEM.
TEMPLETON FUNDS - the U.S. registered mutual funds in the Templeton Group of
Funds except Templeton Capital Accumulator Fund, Inc., Templeton Variable
Annuity Fund, and Templeton Variable Products Series Fund.
TGII - Templeton Global Investors, Inc.
TICI - Templeton Investment Counsel, Inc., the Fund's investment manager,
located at Broward Financial Centre, Fort Lauderdale, FL 33394-3091.
TRUST COMPANY - Franklin Templeton Trust Company. Trust Company is an
affiliate of Distributors and both are wholly owned subsidiaries of
Resources.
U.S. - United States.
WE/OUR/US - Unless the context indicates a different meaning, these terms refer
to the Fund and/or Investor Services, Distributors, or another wholly owned
subsidiary of Resources.
Templeton Global Opportunities Trust <W033>43
INSTRUCTIONS AND IMPORTANT NOTICE
SUBSTITUTE W-9 INSTRUCTIONS INFORMATION
GENERAL. Backup withholding is not an additional tax. Rather, the tax
liability of persons subject to backup withholding will be reduced by the
amount of tax withheld. If withholding results in an overpayment of
taxes, a refund may be obtained from the IRS.
OBTAINING A NUMBER. If you do not have a Social Security Number/Taxpayer
Identification Number or you do not know your SSN/TIN, you must obtain Form SS-5
or Form SS-4 from your local Social Security or IRS office and apply for one. If
you have checked the "Awaiting TIN" box and signed the certification,
withholding will apply to payments relating to your account unless you provide a
certified TIN within 60 days.
WHAT SSN/TIN TO GIVE. Please refer to the following guidelines:
<TABLE>
<CAPTION>
ACCOUNT TYPE GIVE SNN OF ACCOUNT TYPE GIVE EMPLOYER ID #
OF
- ---------------------- ----------------- -------------------- --------------------
<S> <C> <C> <C>
Individual Individual Trust, Estate, or Trust, Estate, or
Pension Plan Trust Pension Plan Trust
---------------------- ----------------- -------------------- --------------------
Joint Individual Owner who will Corporation, Corporation,
be paying tax or Partnership, or Partnership, or
first-named other organization other organization
individual
- ---------------------- ----------------- -------------------- --------------------
Unif. Gift/ Minor Broker nominee Broker nominee
Transfer to Minor
- ---------------------- ----------------- -------------------- --------------------
Sole Proprietor Owner of
business
- ---------------------- ----------------- -------------------- --------------------
Legal Guardian Ward, Minor,
or Incompetent
- ---------------------- ----------------- -------------------- --------------------
</TABLE>
EXEMPT RECIPIENTS. Please provide your TIN and check the "Exempt
Recipient" box if you are an exempt recipient. Exempt recipients include:
A corporation A registered dealer in
securities or commodities
registered in the
A financial institution U.S. or a U.S. possession
An organization exempt from tax A real estate investment trust
under section 501(a), or an
individual retirement plan A common trust fund operated
by a bank under section 584(a)
Templeton Global Opportunities Trust 44
An exempt charitable remainder An entity registered at all trust or a
non-exempt trust times under the Investment described in section
4947(a)(1) Company Act of 1940
IRS PENALTIES. If you do not supply us with your SSN/TIN, you will be subject to
an IRS $50 penalty unless your failure is due to reasonable cause and not
willful neglect. If you fail to report certain income on your federal income tax
return, you will be treated as negligent and subject to an IRS 20% penalty on
any underpayment of tax attributable to such negligence, unless there was
reasonable cause for the resulting underpayment and you acted in good faith. If
you falsify information on this form or make any other false statement resulting
in no backup withholding on an account which should be subject to backup
withholding, you may be subject to an IRS $500 penalty and certain criminal
penalties including fines and imprisonment.
SUBSTITUTE W-8 INSTRUCTIONS INFORMATION
EXEMPT FOREIGN PERSON. Check the "Exempt Foreign Person" box if you qualify as a
non-resident alien or foreign entity that is not subject to certain U.S.
information return reporting or to backup withholding rules. Dividends paid to
your account may be subject to withholding of up to 30%. You are an "Exempt
Foreign Person" if you are not (1) a citizen or resident of the U.S., or (2) a
U.S. corporation, partnership, estate, or trust. In the case of an individual,
an "Exempt Foreign Person" is one who has been physically present in the U.S.
for less than 31 days during the current calendar year. An individual who is
physically present in the U.S. for at least 31 days during the current calendar
year will still be treated as an "Exempt Foreign Person," provided that the
total number of days physically present in the current calendar year and the two
preceding calendar years does not exceed 183 days (counting all of the days in
the current calendar year, only one-third of the days in the first preceding
calendar year and only one-sixth of the days in the second preceding calendar
year). In addition, lawful permanent residents or green card holders may not be
treated as "Exempt Foreign Persons." If you are an individual or an entity, you
must not now be, or at this time expect to be, engaged in a U.S. trade or
business with respect to which any gain derived from transactions effected by
the Fund/Payer during the calendar year is effectively connected to the U.S. (or
your transactions are exempt from U.S. taxes under a tax treaty).
PERMANENT ADDRESS. The Shareholder Application must contain your
permanent address if you are an "Exempt Foreign Person." If you are an
individual, provide your permanent address. If you are a partnership or
corporation, provide the
Templeton Global Opportunities Trust 45
address of your principal office. If you are an estate or trust, provide the
address of your permanent residence or the principal office of any fiduciary.
NOTICE OF CHANGE IN STATUS. If you become a U.S. citizen or resident after you
have provided certification of your foreign status, or if you cease to be an
"Exempt Foreign Person," you must notify the Fund/Payer within 30 days of your
change in status. Reporting will then begin on the account(s) listed, and backup
withholding may also begin unless you certify to the Fund/Payer that (1) the
taxpayer identification number you have given is correct, and (2) the Internal
Revenue Service has not notified you that you are subject to backup withholding
because you failed to report certain interest or dividend income. You may use
Form W-9, "Payer's Request for Taxpayer Identification Number and
Certification," to make these certifications. If an account is no longer active,
you do not have to notify a Fund/Payer or broker of your change in status unless
you also have another account with the same Fund/Payer that is still active. If
you receive interest from more than one Fund/Payer or have dealings with more
than one broker or barter exchange, file a certificate with each. If you have
more than one account with the same Fund/Payer, the Fund/Payer may require you
to file a separate certificate for each account.
WHEN TO FILE. File these certifications with the Fund before a payment is made
to you, unless you have already done this in either of the two preceding
calendar years.
HOW OFTEN YOU MUST FILE. This certificate generally remains in effect for three
calendar years. A Fund/Payer or broker, however, may require that a new
certificate be filed each time a payment is made. On joint accounts for which
each joint owner is a foreign person, each must provide a certification of
foreign status.
Templeton Global Opportunities Trust 46
FOR CORPORATE SHAREHOLDERS--FORM OF RESOLUTION
It will be necessary for corporate shareholders to provide a certified copy of a
resolution or other certificate of authority to authorize the purchase as well
as sale (redemption) of shares and withdrawals by checks or drafts. You may use
the following form of resolution or you may prefer to use your own. It is
understood that the Fund, Franklin Templeton Distributors, Inc., Franklin
Templeton Investor Services, Inc., the custodian bank and their affiliates may
rely upon these authorizations until revoked or amended by written notice
delivered by registered or certified mail to the Fund.
CERTIFIED COPY OF RESOLUTION (Corporation or Association)
The undersigned hereby certifies and affirms that he/she is the duly
elected
_______________________________of_______________________________
Title Corporate Name
a _______________________________ organized under the laws of the State of
Type of Organization
___________________ and that the following is a true and correct copy
State
of a resolution adopted by the Board of Directors at a meeting duly
called and held on __________________________
Date
RESOLVED, that the _____________________________________________
Officers' Titles
of this Corporation or Association are authorized to open an account in the
name of the Corporation or Association with one or more of the Franklin
Group of Funds or Templeton Family of Funds (collectively, the "Funds") and
to deposit such funds of this Corporation or Association in this account as
they deem necessary or desirable; that the persons authorized below may
endorse checks and other instruments for deposit to said account or
accounts; and
FURTHER RESOLVED, that any of the following __________ officers are
number
authorized to sign any share assignment on behalf of this Corporation or
Association and to take any other actions as may be necessary to sell or
redeem its shares in the Funds or to sign checks or drafts withdrawing funds
from the account; and
FURTHER RESOLVED, that this Corporation or Association shall hold harmless,
indemnify, and defend the Funds, their custodian bank, Franklin Templeton
Distributors, Inc., Franklin Templeton Investor Services, Inc., and their
affiliates, from any claim, loss or liability resulting in whole or in
Templeton Global Opportunities Trust 47
part, directly or indirectly, from their reliance from time to time upon any
certifications by the secretary or any assistant secretary of this
Corporation or Association as to the names of the individuals occupying such
offices and their acting in reliance upon these resolutions until actual
receipt by them of a certified copy of a resolution of the Board of
Directors of the Corporation or Association modifying or revoking any or all
such resolutions.
The undersigned further certifies that the below named persons, whose signatures
appear opposite their names and office titles, are duly elected officers of the
Corporation or Association. (Attach additional list if necessary.)
- -------------------------------- --------------------------------
name/title (please print or type) Signature
- -------------------------------- --------------------------------
name/title (please print or type) Signature
- -------------------------------- --------------------------------
name/title (please print or type) Signature
- -------------------------------- --------------------------------
name/title (please print or type) Signature
- -------------------------------- --------------------------------
Name of Corporation or Association Date
Certified from minutes ________________________________________________
Name and Title
CORPORATE SEAL (if appropriate)
Templeton Global Opportunities Trust 48
FRANKLIN TEMPLETON
TELEPHONE REDEMPTION AUTHORIZATION
AGREEMENT
You may use Franklin Templeton's telephone redemption privilege to redeem
uncertificated Franklin Templeton Fund shares for up to $50,000 (or your
shareholder account balance, whichever is less) per day, per fund account in
accordance with the terms of the Funds' prospectus.
The telephone redemption privilege is available only to shareholders who
specifically request it. If you would like to add this redemption privilege to
the other telephone transaction privileges now automatically available to
Franklin Templeton Fund shareholders, please sign and return this authorization
to Franklin/Templeton Investor Services, Inc. ("Investor Services"), transfer
agent and shareholder servicing agent for the Franklin Templeton Funds.
SHAREHOLDER AUTHORIZATION: I/We request the telephone redemption
privilege under the terms described below and in the prospectus for each
investment company in Franklin Templeton (a "Franklin Templeton Fund" or
a "Fund"), now open or opened at a later date, holding shares registered
as follows:
- -------------------------------------------------------------------
Print name(s) as shown in registration (called "Shareholder")
- -------------------------------------------------------------------
Account number(s)
I/We authorize each Fund and Investor Services to honor and act upon telephone
requests, given as provided in this agreement, to redeem shares from any
Shareholder account.
- -------------------------------- --------------------------------
Signature(s) of all registered owners
and date
- -------------------------------- --------------------------------
Printed name (and title/capacity, if
applicable)
VERIFICATION PROCEDURES: I/We understand and agree that: (1) each Fund and
Investor Services will employ reasonable procedures to confirm that redemption
instructions communicated by telephone are genuine and that if these
confirmation procedures are not followed, the Fund or Investor Services may be
liable for any losses due to unauthorized or fraudulent telephone instructions;
(2) the confirmation procedures will include the recording of telephone calls
requesting redemptions, requiring that the caller provide certain personal
and/or account information requested by the telephone service agent at the time
of the call for the purpose of establishing the caller's identification, and the
sending of confirmation statements to the address of record each time a
redemption is
Templeton Global Opportunities Trust 49
initiated by telephone; and (3) as long as the Fund and Investor Services follow
the confirmation procedures in acting on instructions communicated by telephone
which were reasonably believed to be genuine at the time of receipt, neither
they nor their parent or affiliates will be liable for any loss, damages or
expenses caused by an unauthorized or fraudulent redemption request.
JOINTLY OWNED/CO-TRUSTEE ACCOUNTS: Each of us signing this agreement as either
joint owners or co-trustees authorize each Fund and Investor Services to honor
telephone redemption requests given by ANY ONE of the signers or our investment
representative of record, if any, ACTING ALONE.
APPOINTMENT OF ATTORNEY-IN-FACT: In order to issue telephone redemption requests
acting alone, each of us individually makes the following appointment: I hereby
appoint the other joint owner(s)/co-trustee(s) as my agent(s)
(attorney[s]-in-fact) with full power and authority to individually act for me
in any lawful way with respect to the issuance of instructions to a Fund or
Investor Services in accordance with the telephone redemption privilege we have
requested by signing this agreement. This appointment shall not be affected by
my subsequent disability or incompetency and shall remain in effect until it is
revoked by either written notice from any one of us delivered to a Fund or
Investor Services by registered mail, return receipt requested, or by a Fund or
Investor Services upon receipt of any information that causes a Fund or Investor
Services to believe in good faith that there is or that there may be a dispute
among any of us with respect to the Franklin Templeton Fund account(s) covered
by this agreement. Each of us agrees to notify the Fund or Investor Services
immediately upon the death of any of the undersigned.
CORPORATE/PARTNERSHIP/TRUST/RETIREMENT ACCOUNTS: The Shareholder and each of us
signing this agreement on behalf of the Shareholder represent and warrant to
each Franklin Templeton Fund and Investor Services that the Shareholder has the
authority to enter into this agreement and that each of us are duly authorized
to execute this agreement on behalf of the Shareholder. The Shareholder agrees
that its election of the telephone redemption privilege means that a Fund or
Investor Services may honor a telephone redemption request given by ANY officer/
partner/member/administrator or agent of Shareholder ACTING ALONE.
RESTRICTED ACCOUNTS: Telephone redemptions and dividend option changes
may not be accepted on Franklin Templeton Trust Company retirement accounts.
PLEASE RETURN THIS FORM TO:
Franklin/Templeton Investor Services, Inc.
P.O. Box 33030
St. Petersburg, FL 33733-8030
Templeton Global Opportunities Trust 50
This page intentionally left blank.
Templeton Global Opportunities Trust 51
This page intentionally left blank.
Templeton Global Opportunities Trust 52
This page intentionally left blank.
Templeton Global Opportunities Trust 53
FRANKLIN TEMPLETON GROUP OF FUNDS
LITERATURE REQUEST Call 1-800/DIAL BEN (1-800/342-5236) 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.
INTERNATIONAL GROWTH Franklin MidCap Growth FRANKLIN FUNDS SEEKING
Franklin Global Health Fund TAX-FREE INCOME
Care Fund Franklin Small Cap Federal
Franklin International Growth Fund Intermediate-Term
Equity Fund Tax-Free Income Fund
Franklin Templeton Japan GROWTH AND INCOME Federal Tax-Free
Fund Franklin Asset Income Fund
Templeton Developing Allocation Fund High Yield Tax-Free
Markets Trust Franklin Balance Sheet Income Fund
Templeton Foreign Fund Investment Fund Insured Tax-Free
Templeton Global Franklin Convertible Income Fund
Infrastructure Fund Securities Fund Puerto Rico Tax-Free
Templeton Global Franklin Equity Income Income Fund
Opportunities Trust Fund Tax-Exempt Money Fund
Templeton Global Real Franklin Income Fund
Estate Fund Franklin MicroCap Value FRANKLIN
Templeton Global Smaller Fund STATE-SPECIFIC FUNDS
Companies Fund Franklin Natural SEEKING TAX-FREE INCOME
Templeton Greater Resources Fund Alabama
European Fund Franklin Real Estate Arizona*
Templeton Growth Fund Securities Fund Arkansas**
Templeton Latin America Franklin Rising California*
Fund Dividends Fund Colorado
Templeton Pacific Growth Franklin Strategic Connecticut
Fund Income Fund Florida*
Templeton World Fund Franklin Utilities Fund Georgia
Franklin Value Fund Hawaii**
INTERNATIONAL GROWTH Templeton American Indiana
AND INCOME Trust, Inc. Kentucky
Franklin Global Louisiana
Utilities Fund INCOME Maryland
Franklin Templeton German Franklin Adjustable Rate Massachusetts***
Government Bond Fund Securities Fund Michigan*
Franklin Templeton Franklin Adjustable U.S. Minnesota***
Global Currency Fund Government Securities Missouri
Templeton Global Bond Fund New Jersey
Fund Franklin AGE High New York*
Templeton Growth and Income Fund North Carolina
Income Fund Franklin Investment Ohio***
Grade Income Fund Oregon
INTERNATIONAL INCOME Franklin Pennsylvania
Franklin Global Short-Intermediate U.S. Tennessee**
Government Government Securities Texas
Income Fund Fund Virginia
Franklin Templeton Hard Franklin U.S. Government Washington**
Currency Fund Securities Fund
Franklin Templeton High Franklin Money Fund VARIABLE ANNUITIES
Income Currency Fund Franklin Federal Money Franklin Valuemark(SM)
Templeton Americas Fund Franklin Templeton
Government Securities Valuemark
Fund FOR NON-U.S. INVESTORS: Income Plus (an
Franklin Tax-Advantaged immediate annuity)
GROWTH High Yield Securities
Franklin Blue Chip Fund Fund
Franklin California Franklin Tax-Advantaged
Growth Fund International Bond Fund
Franklin DynaTech Fund Franklin Tax-Advantaged
Franklin Equity Fund U.S.
Franklin Gold Fund Government Securities
Franklin Growth Fund Fund
FOR CORPORATIONS:
Franklin Corporate
Qualified
Dividend Fund
*Two or more fund options available: long-term portfolio, intermediate-term
portfolio, a portfolio of insured municipal securities, and/or a high yield
portfolio (CA) and a money market portfolio (CA and NY). **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.
TL415 P 09/96
Logo Appears Here
FRANKLIN TEMPLETON
TEMPLETON
FUNDS
P.O. Box 33031
St. Petersburg, FL
33733-8031
1-800-393-3001
Please do not use this form for any retirement plan for which Franklin
Templeton Trust Company serves as custodian or trustee, or for Templeton
Money Fund, Templeton Institutional Funds or Templeton Capital Accumulator
Fund. Request separate applications.
SHAREHOLDER APPLICATION OR REVISION [] Please check the box if this is a
revision and see Section 8
Please check Class I or Class II, if applicable, next to your Fund selection.
Class I and Class II shares have different sales charges and operating expenses,
among other differences, as described in each Fund's prospectus.Date
- ------------------
CLASS
I II Templeton
[ ] [ ] $______American Trust
[ ] ______Americas Government Securities Fund
[ ] [ ] ______Developing Markets Trust
[ ] [ ] ______Foreign Fund
[ ] [ ] ______Global Bond Fund
CLASS
I II Templeton
[ ] [ ]$______Global Infrastructure Fund
[ ] [ ] ______Global Opportunities Trust
[ ] [ ] ______Global Real Estate Fund
[ ] [ ] ______Global Smaller Companies Fund
[ ] [ ] ______Greater European Fund
CLASS
I II Templeton
[ ] [ ]$______Growth Fund
[ ] [ ] ______Growth and Income Fund
[ ] ______Japan Fund
[ ] [ ] ______Latin America Fund
[ ] [ ] ______World Fund
CLASS
I II
[ ] [ ] Other:$______
(except for Class II Money Fund)
-----------------
-----------------
----------------
1 ACCOUNT REGISTRATION - PLEASE PRINT
n INDIVIDUAL OR JOINT ACCOUNT
- -------------------------------------------------------------------------------
First name Middle initial Last name Social Security number(SSN)
- -------------------------------------------------------------------------------
Joint owner(s) Joint ownership means Social Security number (SSN)
"joint tenants with rights of
survivorship" unless otherwise specified.)
ALL OWNERS MUST SIGN SECTION 4.
[] GIFTS/TRANSFERS TO A MINOR
- ----------------------------------------- As Custodian For -----------------
Name of custodian (one only) Minor's name (one only)
- ----------------------------------------- Uniform Gifts/
Transfers to Minors Act-------------
State (minor's or custodian's state Minor's Social Security number
of residence)
Please Note: Custodian's signature, not minor's, is required in Section 4.
- ------------------------------------------------------------------------------
[ ] TRUST, CORPORATION, PARTNERSHIP, RETIREMENTPLAN, OR OTHER ENTITY
- ------------------------------------------ ----------------------------------
Name Taxpayer identification number(TIN)
- -------------------------------------------
Name of beneficiary (if to be included in Date of trust document (must be
the registration) completed for registration)
- -------------------------------------------------------------------------------
Name of each trustee (if to be included in the registration)
==============================================================================
2 ADDRESS
- --------------------------------------- Daytime Telephone(---)-----------------
Street address (P.O. Box acceptable if Area code
street address is given)
- --------------------------------------- Evening Telephone(---)---------------
City State Zip code Area code
I am a citizen of: [ ] U.S. or [ ]_________________________________________
===============================================================================
3 INITIAL INVESTMENT - $100 minimum initial investment
Enclosed is a check payable to the Fund indicated above for $__________________.
===============================================================================
4 SIGNATURE AND TAX CERTIFICATIONS - All registered owners must sign application
See "Important Notice Regarding Taxpayer IRS Certifications" in back of
prospectus. The Fund reserves the right to refuse to open an account without
either a certified taxpayer identification number ("TIN"), Social Security
number ("SSN"), or a certification of foreign status. Failure to provide tax
certifications in this section may result in backup withholding on payments
relating to your account and/or in your inability to qualify for treaty
withholding rates. I am not subject to backup withholding because I have not
been notified by the IRS that I am subject to backup withholding as a result of
a failure to report all interest or dividends or because the IRShas notified me
that I am no longer subject to backup withholding. (If you are currently subject
to backup withholding as a result of a failure to report all interest or
dividends, please cross out the preceding statement.)
[ ] The number shown above is my correct TIN or SSN, or that of the minor
named in section 1.
[ ] Awaiting TIN. I am waiting for a number to be issued to me. I understand
that if I do not provide a TIN to the Fund within 60 days, the Fund is
required to commence 31% backup withholding until I provide a certified TIN.
[ ] Exempt Recipient. Individuals cannot be exempt. Check this box only after
reading the instructions, found in the back of the Fund's prospectus,
to see whether you qualify as an exempt recipient. (You should still
provide a TIN.)
[ ] Exempt Foreign Person. Check this box only if the following statement
applies: "I am neither a citizen nor a resident of the United States. I
certify to the best of my knowledge and belief, I qualify as an exempt
foreign person and/or entity as described in the instructions, found in
the back of the Fund's prospectus."
Permanent address for income
tax purposes:---------------------------------------------------------------
Street Address City State Country Postal Code
PLEASE NOTE: The IRS only allows one TIN to be listed on an account. On joint
accounts, it is preferred that the primary account owner (or person listed
first on the account) list his/her number as requested above.
Certification - Under the penalties of perjury, I/we certify that (1) the
information provided on this application is true, correct and complete,
(2) I/we have read the prospectus(es) for the Fund(s) in which I am/we are
investing and agree to the terms thereof, and (3) I am/we are of legal age or
an emancipated minor. I/we acknowledge that shares of the Fund(s) are not
insured or guaranteed by any agency or institution and that an investment in
fund shares involves risks, including the possible loss of the principal amount
invested.
X X
- ------------------------------------------------------------------------------
Signature Signature
X X
- -------------------------------------------------------------------------------
Signature Signature Please make a photocopy of this application for your
records.
=============================================================================
5 BROKER/DEALER USE ONLY - Please print
Franklin Templeton Dealer #
We hereby submit this application for the purchase of shares of the Fund(s)
and class(es) indicated in accordance with the terms of our selling agreement
with Franklin/Templeton Distributors, Inc.("FTD"), and with the prospectus(es)
for the Funds. We agree to notify FTD of any purchases of Class I shares which
may be eligible for reduced or eliminated sales charges.
WIRE ORDER ONLY: The attached check for $________________________ should be
applied against wire order confirmation number________________________
dated____________________ for________________________ shares
Securities Dealer Name
-------------------------------------------------------
Main Office Address Main Office Telephone Number
-------------------- -----------
Branch # ___________Representative # ______Representative Name ______________
Branch Address _____________________________Branch Telephone Number----------
Authorized Signature, Securities Dealer _______________ Title----------------
ACCEPTED: Franklin/Templeton Distributors, Inc. By __________------ Date-----
Please see reverse side for shareholder account privileges.
This application must be preceded or accompanied by a prospectus for the
Fund(s) being purchased.
TLGOF APP 08/96
6 DISTRIBUTION OPTIONS - Check one
Check one - if no box is checked, all dividends and capital gains will be
reinvested in additional shares of the Fund.
[ ] Reinvest all dividends and capital gains. [ ] Pay all dividends in cash
and reinvest capital gains.
[ ] Pay capital gains in cash and reinvest [ ] Pay all dividends and
dividends. capital gains in cash.
===============================================================================
7 OPTIONAL SHAREHOLDER PRIVILEGES
A. Special Payment Instructions for Distributions (Check one box)
[ ] Invest distributions, as noted in Section 6, or l withdrawals, as noted in
Section 7B, in another Franklin or Templeton Fund.
Restrictions may apply to purchases of shares of a different class. See the
prospectus for details.
Fund Name___________________________________ Existing Account Number
OR
[ ] Send my distributions, as noted in Section 6, to the person, named below,
instead of as registered and addressed in Sections 1 and 2.
Name ___________________________________ Street Address____________________
City____________________________________ State _____________ ZipCode_______
- ------------------------------------------------------------------------------
B. Systematic Withdrawal Plan
Please withdraw from my Franklin Templeton account $_______________________
($50 minimum) [ ] Monthly [ ] Quarterly [ ] Semi-Annually or [ ] Annually
as set forth in the prospectus, starting in ________________________________
(month). The net asset value of the shares held must be at least $5,000 at
the time the plan is established. Additional restrictions may apply to
Class II or other shares subject to contingent deferred sales charge,
as described in the prospectus. Send the withdrawals to: [ ] address of
record OR [ ] the Franklin or Templeton Fund, or person specified in
Section 7A - Special Payment Instructions for Distributions.
- -------------------------------------------------------------------------------
C. TELEPHONE TRANSACTIONS
TELEPHONE EXCHANGE PRIVILEGE: If the Fund does not receive specific
instructions from the shareholder, either in writing or by telephone, the
Telephone Exchange Privilege (see the prospectus) is automatically extended to
each account. The shareholder should understand, however, that the Fund and
Franklin Templeton Investor Services, Inc. ("FTI") or Franklin Templeton Trust
Company and their agents will not be liable for any loss, injury, damage or
expense as a result of acting upon instructions communicated by telephone
reasonably believed to be genuine. The shareholder agrees to hold the Fund and
its agents harmless from any loss, claims, or liability arising from its or
their compliance with such instructions. The shareholder understands that this
option is subject to the terms and conditions set forth in the prospectus of the
fund to be acquired.
[ ] No, I do NOTwish to participate in the Telephone Exchange Privilege or
authorize the Fund or its agents, including FTI or Templeton Funds Trust
Company, to act upon instructions received by telephone to exchange shares
for shares of any other account(s) within the Franklin Templeton Group of Funds.
TELEPHONE REDEMPTION PRIVILEGE: This is available to shareholders who
specifically request it and who complete the Franklin Templeton Telephone
Redemption Authorization Agreement in the back of the Fund's prospectus.
- -------------------------------------------------------------------------------
D. AUTOMATIC INVESTMENT PLAN
IMPORTANT: ATTACH AN UNSIGNED, VOIDED CHECK (FOR CHECKING ACCOUNTS) OR A
SAVINGS ACCOUNT DEPOSIT SLIP HERE, AND COMPLETE THE INFORMATION BELOW.
I/We would like to establish an Automatic Investment Plan (the "Plan") as
described in the prospectus. I/We agree to reimburse FTI and/or FTD for any
expenses or losses that they may incur in connection with my/our Plan, including
any caused by my/our bank's failure to act in accordance with my/our request. If
my/our bank makes any erroneous payment or fails to make a payment after shares
are purchased on my/our behalf, any such purchase may be cancelled and I/we
hereby authorize redemptions and/or deductions from my/our account for that
purpose.
Debit my (circle one) savings, checking, other ___________________________
account monthly for $________________________ ($25 minimum) on or about the
[ ]1st [ ]5th [ ]15th or [ ]20th day starting ______________________ (month),
to be invested in (name of Fund) ___________________________________ Account
Number (if known) _______________________________________________
INSTRUCTIONS TO BANK - AUTOMATIC INVESTMENT PLAN AUTHORIZATION
To:
----------------------------------------------------- ------------------
Name of Your Bank ABA Number
------------------------------- ------------------- ----------- --------
Street Address City State Zip Code
I/We authorize you to charge my/our Checking/Savings account and to make
payment to FTD, upon instructions from FTD. I/We agree that in making payment
for such charges your rights shall be the same as if each were a charge made
and signed personally by me(us). This authority shall remain in effect until
you receive written notice from me/us changing its terms or revoking it. Until
you actually receive such notice, I/we agree that you shall be fully
protected in paying any charge under this authority. I/We further agree that
if any such charge is not made, whether with or without cause
and whether intentionally or inadvertently, you shall be under no liability
whatsoever.
X
- -------------------------------------------------------- ----------------
Signature(s) EXACTLY as shown on your bank records Date
- -------------------------------------------------------- ---------------------
Print Name(s) Account Number
- ------------------------------- ------------------ ------------- ------------
Your Street Address City State Zip Code
- -------------------------------------------------------------------------------
E. Letter of Intent (LOI)-- Not Applicable to Purchases of Class II
[ ]I/We agree to the terms of the LOI and provisions for reservations of Class I
shares and grant FTD the security interest set forth in the prospectus. Although
I am/we are not obligated to do so, it is my/our intention to invest over a 13
month period in Class I and/or Class II shares of one or more Franklin or
Templeton Funds (including all money market funds in the Franklin Templeton
Group) an aggregate amount at least equal to that which is checked below. I
understand that reduced sales charges will apply only to purchases of Class I
shares.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
[ ]$50,000-99,999(except for Global Bond Fund [ ] $100,000-249,999 []$250,000-499,999 [] $500,000-999,999 []$1,000,000 or more
and Americas Government Securities Fund)
</TABLE>
Purchases of Class I shares under LOI of $1,000,000 or more are made at net
asset value and may be subject to a contingent deferred sales charge as
described in the prospectus.
Purchases made within the last 90 days will be included as part of your LOI.
However, certain employee benefit plans are subject to different rules.
Please write in your account number(s)
----------- ------------ ------------
- -------------------------------------------------------------------------------
F. Cumulative Quantity Discount--Not Applicable to Purchases of Class II Shares
Class I shares may be purchased at the offering price applicable to the total
of (a) the dollar amount then being purchased plus (b) the amount equal to the
cost or current value (whichever is higher) of the combined holdings of the
purchaser, his or her spouse, and their children or grandchildren under age 21,
of Class I and/or Class II shares of funds in Franklin Templeton, as well as
other holdings of Franklin Templeton Investments, as that term is defined in the
prospectus. In order for this cumulative quantity discount to be made available,
the shareholder or his or her securities dealer must notify FTIor FTD of the
total holdings in Franklin Templeton each time an order is placed. I understand
that reduced sales charges will apply only to purchases of Class I shares.
[ ]I/We own shares of more than one Fund in Franklin Templeton and qualify for
the Cumulative Quantity Discount described above and in the prospectus.
My/Our other account number(s) are
----------- ------------ ---------------
===============================================================================
8 ACCOUNT REVISION (if applicable)
If you are using this application to revise your account registration
(Section 1), or wish to have distribution income sent to an address other than
the address on your existing account's registration (Section 7A), a signature
guarantee is required. Signatures of all registered owners must be guaranteed by
an "eligible guarantor institution" as defined in the "How to Sell Shares of the
Fund" section in the Fund's prospectus. A notary public is not an acceptable
guarantor.
X
- ------------------------------------------------- ----------------------------
Signature(s) of registered account owners Account number(s)
X
------------------------------------------------ ----------------------------
X
- ------------------------------------------------
X
- ------------------------------------------------- ----------------------------
Signature guarantee stamp
NOTE: For any change in registration, please send us any outstanding
certificates by registered mail.
