SEMI ANNUAL REPORT
TEMPLETON GLOBAL OPPORTUNITIES TRUST
JUNE 30, 1998
[LOGO]
FRANKLIN(R) TEMPLETON(R)
PAGE
[50 YEAR LOGO]
Thank you for investing with Franklin Templeton. We encourage our investors to
maintain a long-term perspective and remember that all securities markets move
both up and down, as do mutual fund share prices. We appreciate your past
support and look forward to serving your investment needs in the years ahead.
In 1992, Sir John Templeton retired after a 50-year career of helping investors
manage their money. Currently he devotes all of his time and efforts to the John
Templeton Foundation. A major portion of his assets remain invested in the
Templeton funds which are managed by many of the investment professionals he
selected and trained.
[PHOTO OF HOWARD J. LEONARD APPEARS HERE]
Howard J. Leonard
Portfolio Manager
Templeton Global Opportunities Trust
PAGE
SHAREHOLDER LETTER
CONTENTS
Shareholder Letter ........ 1
Performance Summaries
Class I ................ 6
Class II ............... 8
Financial Highlights &
Statement of Investments .. 10
Financial Statements ...... 17
Notes to Financial
Statements ................ 20
[PYRAMID GRAPHIC]
- -------------------------------------------------------------------------------
Your Fund's Objective: Templeton Global Opportunities Trust seeks long-term
capital growth by a flexible policy of investing in the equity and debt
securities of companies and governments of any nation.
- -------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to bring you this semiannual report of the Templeton Global
Opportunities Trust, covering the six months ended June 30, 1998. During this
period, the Fund's Class I shares provided a 4.52% six-month cumulative total
return, as discussed in the Performance Summary on page 6. The unmanaged Morgan
Stanley Capital International(R) (MSCI) All Country World Free Index (MSCI-ACWF)
reported a 14.77% total return for the same period.(1) The Fund's
underperformance versus the index can be attributed largely to its significant
U.S. underweighting and a lesser European underweighting. In both regions, stock
prices in general continued their long march upward, and we tended to be sellers
into this strength. Although the Fund did not own many Asian stocks, the
indirect impact of
1. Market return is measured in U.S. dollars and includes reinvested dividends.
An index is an unmanaged group of securities that is used to measure market
performance. One cannot invest directly in an index.
You will find a complete listing of the Fund's portfolio holdings, including the
dollar value and number of shares or principal amount, beginning on page 12 of
this report.
PAGE
GEOGRAPHIC DISTRIBUTION
This chart shows, in pie format, the geographic distribution of total net
assets as of June 30, 1998
[PIE CHART APPEARS HERE]
Europe 34.7%
Latin America 13.8%
United States 13.5%
Asia 3.3%
Australia & New Zealand 2.9%
Other 3.7%
Short-Term Investment & Other Net Assets 28.1%
the Asian crisis hurt its performance. As fearful investors fled emerging
markets across the globe, and raced to re-invest in "safer," but more expensive,
U.S. and European markets, many of our Latin American holdings fell in value.
Our performance relative to the index was also limited because of the large cash
position we maintained to take advantage of opportunities the Asian crisis might
create to purchase stocks offering long-term value.
Most European stock markets soared in early 1998, aided by lower oil and
commodity prices. Corporate restructuring, low interest rates, and optimism
surrounding the advent of the new European currency also contributed to the
bullish sentiment. These trends benefited our European holdings, but stock
prices there generally became expensive relative to our long-term earnings
forecasts. Southern European stock prices experienced particularly sharp
advances, and we sold a stake in Telecom Italia Mobile SpA when it was selling
at 12 times more than we thought it could earn five years in the future. And
while the first impact of the Asian crisis resulted in lower costs for Europe's
businesses, the next effect could be lower demand for European goods and more
stress on Europe's banking sector. Accordingly, we expect to replace some
European holdings over time as market conditions provide attractive
alternatives.
Because of the historically high valuations of U.S. stocks, the Fund's U.S.
equity holdings represented only 13.5% of total net assets on June 30, 1998. As
you know, our investment process has been successful largely because we avoid
stocks when they are selling at above-average multiples of long-term earnings
potential. While this led us to hold few U.S. stocks during the period, and to
suffer short-term underperformance relative to the index, we are confident that
over the longer term, this philosophy should help us in our search for
2
PAGE
This chart shows the top ten industries of the Templeton Global Opportunities
Trust, as of June 30, 1998, based on total net assets.
<TABLE>
<S> <C>
% OF TOTAL
INDUSTRY NET ASSETS
- ------------------------------------------
Telecommunications 13.6%
Banking 10.9%
Energy Sources 6.6%
Insurance 6.2%
Utilities Electrical & Gas 6.1%
Electrical & Electronics 4.6%
Metals & Mining 3.0%
Forest Products & Paper 2.3%
Data Processing & Reproduction 2.3%
Leisure & Tourism 2.2%
</TABLE>
stocks with long-term potential. At the current, elevated state of the U.S.
market, and with a degree of speculative fever building in certain sectors
(notably Internet stocks), we are content to be largely on the sidelines. As in
the case of Europe, the secondary effects of the Asian crisis may represent a
threat to U.S. corporate earnings growth, which could lead to a fall in U.S.
stock prices. But even if this may not occur, it is not easy to make a case for
continued, strong earnings growth and expanding price/earnings multiples in the
U.S. Both would be required if investors are to have a good chance of achieving
high future returns from U.S. stocks.
Economic devastation in Asia has been severe, and the ultimate consequences are
yet to be fully understood. But even though Asian stock prices and currency
values were particularly hard hit, we found it difficult to identify large
numbers of stocks meeting our strict value criteria. The primary reason is that
economic turmoil has been so deep that it destroyed the balance sheets of many
companies in countries like South Korea, Thailand and Indonesia. The process of
rebuilding these balance sheets has not yet started, will probably take a long
time to complete, and could result in significant earnings dilution once
accomplished. In our opinion, hundreds of billions of U.S. dollars may be needed
to recapitalize the region's banking and corporate sectors. Problems of this
magnitude are usually not solved quickly, and the risk of further severe
contractions remains high as China's economy could weaken and Japan's economy
may not recover from its long slump. However, we do believe that in the future
we will be able to identify a number of companies likely to survive without
major earnings dilution, or where stock prices already reflect such dilution.
Accordingly, we anticipate the Asian weighting in the Fund will grow over time,
perhaps significantly.
3
PAGE
This chart shows the top ten equity holdings of the Templeton Global
Opportunities Trust, including company name and industry, as of June 30, 1998,
based on total net assets.
<TABLE>
<S> <C>
COMPANY, % OF TOTAL
INDUSTRY, COUNTRY NET ASSETS
- ---------------------------------------------
British Energy Ltd., 144A
Utilities Electrical & Gas, U.K. 3.1%
Nokia AB, A
Telecommunications, Finland 2.9%
Lucent Technologies Inc.
Telecommunications, U.S. 2.4%
Foreningssparbanken AB, A
Banking, Sweden 2.3%
Kuoni Reisen Holding AG, B
Leisure & Tourism, Switzerland 2.2%
Telefonica SA
Telecommunications, Spain 1.9%
Telecomunicacoes Brasileiras SA
(Telebras), pfd., ADR
Telecommunications, Brazil 1.8%
Fannie Mae
Financial Services, U.S. 1.6%
Total SA, B
Energy Sources, France 1.6%
Ace Ltd.
Insurance, Bermuda 1.5%
</TABLE>
Latin American share prices have been among the cheapest in the world for some
time, but the impact of the "Asian flu" upon the region's equities was still
reasonably severe, as interest rates rose and economic growth rates fell.
Although this may limit earnings growth in the short run, over the long term
most Latin American companies seem attractively valued. Moreover, these
companies typically carry less debt (particularly debt denominated in U.S.
dollars) than did their Asian counterparts. Therefore, in our opinion, even an
intensified economic downturn probably would not affect Latin American companies
as intensely as those in Asia. During the reporting period, we maintained a
particularly large exposure to Brazil, where we believe price/earnings ratios
were quite low.
While we are disappointed by the short-term results of the Fund, we are hopeful
that the bargain-priced stocks we hold will reduce the risk of loss, and enhance
the opportunities to earn attractive returns over the longer term. We can invest
up to 40% of the Fund's total net assets in emerging stock markets, but as of
June 30, 1998, the proportion of total net assets in these markets was only 20%.
Given the opportunities we anticipate arising to purchase long-term bargains in
Asia and Latin America, and the lack of similar options in the more expensive
U.S. and European markets, our exposures there may grow over time. In our
experience, value is most often found where other investors are selling, and
attractive selling opportunities are most often found where other investors are
greedily buying. Such strategies have provided many of our shareholders with
attractive long-term returns, and we believe they will continue doing so in the
future.
Please remember, this discussion reflects our views, opinions and portfolio
holdings as of June 30, 1998, the end of the reporting period. However, market
and economic conditions are changing
4
PAGE
constantly, which can be expected to affect our strategies and the Fund's
portfolio composition. Although historic performance is no guarantee of future
results, these insights may help you understand our investment and management
philosophy.
There are, of course, special risks involved with global investing related to
market, currency, economic, social, political and other factors. Emerging
markets involve heightened risks related to the same factors, in addition to
those associated with their relatively small size and lesser liquidity. These
special risks and other considerations are discussed in the Fund's prospectus.
Investing in any emerging market means accepting a certain amount of volatility
and, in some cases, severe market corrections. While short-term volatility can
be disconcerting, declines of as much as 40% to 50% are not unusual in emerging
markets. For example, the Hong Kong equity market has increased 785% in the last
15 years, but has suffered six quarterly declines of more than 20% during that
time.(2)
We thank you for the trust you have placed in us and look forward to helping you
meet your financial objectives in the years to come.
Sincerely,
/S/ Howard J. Leonard
Howard J. Leonard
Portfolio Manager
Templeton Global Opportunities Trust
2. Source: Bloomberg. Based on quarterly percentage change over 15 years ended
June 30, 1998. Market returns are measured in Hong Kong dollars.
5
PAGE
PERFORMANCE SUMMARY
CLASS I
Templeton Global Opportunities Trust - Class I produced a 4.52% cumulative total
return for the six-month period ended June 30, 1998. Cumulative total return
measures the change in value of an investment, assuming reinvestment of all
distributions, and does not include the initial sales charge. We have always
maintained a long-term perspective when managing the Fund, and we encourage you
to view your investments in a similar manner. As you can see from the table on
page 7, the Fund's Class I shares delivered a cumulative total return of more
than 190% since inception on January 19, 1990.
The Fund's share price, as measured by net asset value, increased
39 cents, from $15.32 on December 31, 1997, to $15.71 on June 30, 1998. During
the reporting period, shareholders received per-share distributions of 1.5 cents
($0.015) in income dividends, and 28.5 cents ($0.285) in long-term capital
gains. Distributions will vary depending on income earned by the Fund and any
profits realized from the sale of securities in the portfolio, as well as the
level of the Fund's operating expenses.
Past performance is not predictive of future results.
6
PAGE
CLASS I
Periods ended 6/30/98
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 5-YEAR (1/19/90)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
Cumulative Total Return(1) 1.77% 96.69% 190.39%
Average Annual Total Return(2) -4.10% 13.14% 12.67%
Value of $10,000 Investment(3) $9,590 $18,540 $27,379
</TABLE>
<TABLE>
<CAPTION>
6/30/94 6/30/95 6/30/96 6/30/97 6/30/98
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
One-Year Total Return(4) 14.98% 13.50% 13.91% 30.02% 1.77%
</TABLE>
1. Cumulative total return represents the change in value of an investment over
the indicated periods and does not include the sales charge.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and has been restated to include the
current maximum 5.75% initial sales charge. Prior to July 1, 1992, Fund shares
were offered at a higher sales charge, thus actual returns would have been
lower.
3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated and have been restated to include the current
maximum 5.75% initial sales charge. Prior to July 1, 1992, Fund shares were
offered at a higher sales charge; thus actual returns would have been lower.
4. One-year total return represents the change in value of an investment over
the periods ended on the dates indicated and does not include the sales charge.
On January 1, 1993, the Fund's Class I shares implemented a Rule 12b-1 plan,
which affects subsequent performance. All calculations assume reinvestment of
distributions at net asset value.
Since markets can go down as well as up, investment return and principal value
will fluctuate with market conditions, currency volatility, and the economic,
social and political climates of countries where investments are made. Emerging
markets involve heightened risks related to the same factors, in addition to
those associated with their relatively small size and lesser liquidity. You may
have a gain or loss when you sell your shares.
Past performance is not predictive of future results.
7
PAGE
Class II
Templeton Global Opportunities Trust - Class II produced a 4.17% cumulative
total return for the six-month period ended June 30, 1998. Cumulative total
return measures the change in value of an investment, assuming reinvestment of
all distributions, and does not include sales charges. We have always maintained
a long-term perspective when managing the Fund, and we encourage you to view
your investments in a similar manner. As you can see from the table on page 9,
the Fund's Class II shares delivered a cumulative total return of more than 56%
since inception on May 1, 1995.
The Fund's share price, as measured by net asset value, increased
33 cents, from $15.17 on December 31, 1997, to $15.50 on June 30, 1998. During
the reporting period, shareholders received per-share distributions of 1.5 cents
($0.015) in income dividends, and 28.5 cents ($0.285) in long-term capital
gains. Distributions will vary depending on income earned by the Fund and any
profits realized from the sale of securities in the portfolio, as well as the
level of the Fund's operating expenses.
Past performance is not predictive of future results.
8
PAGE
CLASS II
Periods ended 6/30/98
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 3-YEAR (5/1/95)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Cumulative Total Return(1) 0.98% 47.54% 56.93%
Average Annual Total Return(2) -1.03% 13.47% 14.95%
Value of $10,000 Investment(3) $9,897 $14,608 $15,540
</TABLE>
<TABLE>
<CAPTION>
6/30/96 6/30/97 6/30/98
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
One-Year Total Return(4) 13.13% 29.15% 0.98%
</TABLE>
1. Cumulative total return represents the change in value of an investment over
the periods indicated and does not include sales charges.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes the 1.0% initial sales
charge and the 1.0% contingent deferred sales charge applicable to shares
redeemed within 18 months of investment.
3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated and include all sales charges.
4. One-year total return represents the change in value of an investment over
the periods ended on the dates indicated and does not include sales charges.
All calculations assume reinvestment of distributions at net asset value. Since
markets can go down as well as up, investment return and principal value will
fluctuate with market conditions, currency volatility, and the economic, social
and political climates of countries where investments are made. Emerging markets
involve heightened risks related to the same factors, in addition to those
associated with their relatively small size and lesser liquidity. You may have a
gain or loss when you sell your shares.
Past performance is not predictive of future results.
9
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Highlights
<TABLE>
<CAPTION>
CLASS I
----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1998 --------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the
period)
Net asset value, beginning of period....... $15.32 $14.62 $12.57 $11.84 $14.46 $10.75
----------------------------------------------------------------------------
Income from investment operations:
Net investment income..................... .25 .38 .30 .16 .09 .12
Net realized and unrealized gains
(losses)................................ .44 1.70 2.69 1.33 (.63) 3.97
----------------------------------------------------------------------------
Total from investment operations........... .69 2.08 2.99 1.49 (.54) 4.09
----------------------------------------------------------------------------
Less distributions from:
Net investment income..................... (.02) (.37) (.30) (.16) (.09) (.11)
In excess of net investment income........ -- -- (.06) -- -- --
Net realized gains........................ (.28) (1.01) (.58) (.60) (1.99) (.27)
----------------------------------------------------------------------------
Total distributions........................ (.30) (1.38) (.94) (.76) (2.08) (.38)
----------------------------------------------------------------------------
Net asset value, end of period............. $15.71 $15.32 $14.62 $12.57 $11.84 $14.46
============================================================================
Total Return*.............................. 4.52% 14.53% 24.19% 12.87% (4.09)% 38.13%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's).......... $786,405 $786,219 $634,478 $510,777 $476,822 $410,747
Ratios to average net assets:
Expenses.................................. 1.37%** 1.37% 1.45% 1.52% 1.53% 1.51%
Net investment income..................... 3.12%** 2.30% 2.10% 1.19% .71% 1.07%
Portfolio turnover rate.................... .00% 26.21% 18.54% 15.54% 37.31% 40.56%
</TABLE>
*Total return does not reflect sales commissions and is not annualized.
**Annualized.
10
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Highlights (continued)
<TABLE>
<CAPTION>
CLASS II
-------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1998 -----------------------------
(UNAUDITED) 1997 1996 1995+
-------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
Net asset value, beginning of period........................ $15.17 $14.52 $12.53 $12.26
-------------------------------------------------
Income from investment operations:
Net investment income...................................... .18 .18 .24 .02
Net realized and unrealized gains.......................... .45 1.77 2.63 .88
-------------------------------------------------
Total from investment operations............................ .63 1.95 2.87 .90
-------------------------------------------------
Less distributions from:
Net investment income...................................... (.02) (.29) (.24) (.12)
In excess of net investment income......................... -- -- (.06) --
Net realized gains......................................... (.28) (1.01) (.58) (.51)
-------------------------------------------------
Total distributions......................................... (.30) (1.30) (.88) (.63)
-------------------------------------------------
Net asset value, end of period.............................. $15.50 $15.17 $14.52 $12.53
=================================================
Total Return*............................................... 4.17% 13.74% 23.28% 7.43%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's)........................... $39,234 $38,627 $11,622 $2,264
Ratios to average net assets:
Expenses................................................... 2.12%** 2.12% 2.20% 2.22%**
Net investment income (loss)............................... 2.38%** .93% 1.12% (.01)%**
Portfolio turnover rate..................................... .00% 26.21% 18.54% 15.54%
</TABLE>
*Total return does not reflect sales commissions or the contingent deferred
sales charge and is not annualized.
**Annualized.
+For the period May 1, 1995 (effective date) to December 31, 1995.
See Notes to Financial Statements.
11
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS 64.8%
AUTOMOBILES 1.0%
Autoliv Inc. ............................................... Sweden 217,000 $ 6,938,645
Volvo AB, B................................................. Sweden 39,700 1,182,303
------------
8,120,948
------------
BANKING 9.1%
Banco Popular Espanol SA.................................... Spain 140,000 11,961,591
BPI Socieda de Gestora de Participacoes Socias SA........... Portugal 117,300 3,785,325
Credit Suisse Group, reg. .................................. Switzerland 42,000 9,345,332
Foreningssparbanken AB, A................................... Sweden 642,100 19,323,628
*Mandamus AB................................................ Sweden 32,105 201,288
National Australia Bank Ltd. ............................... Australia 424,214 5,595,382
National Australia Cap Sec Plc. ............................ Australia 159,608 4,578,755
Unibanco Uniao de Bancos Brasileiros SA, GDR................ Brazil 385,575 11,374,463
Union Bank of Norway, Primary Capital Cert. ................ Norway 124,800 3,578,028
Union Bank of Norway, Primary Capital Cert. 144A............ Norway 175,200 5,023,001
------------
74,766,793
------------
BUILDING MATERIALS & COMPONENTS .2%
Cementos Diamante SA, ADR, 144A............................. Colombia 129,200 1,098,200
Pioneer International Ltd. ................................. Australia 100,000 238,411
------------
1,336,611
------------
BUSINESS & PUBLIC SERVICES 1.0%
Hyder Plc. ................................................. United Kingdom 79,780 1,252,594
Laidlaw Inc. ............................................... Canada 600,000 7,242,188
------------
8,494,782
------------
CHEMICALS 1.2%
Akzo Nobel NV............................................... Netherlands 8,000,000 444,597
Imperial Chemical Industries Plc. .......................... United Kingdom 575,000 9,267,694
------------
9,712,291
------------
CONSTRUCTION & HOUSING .3%
Kaufman & Broad Home Corp. ................................. United States 77,000 2,444,750
------------
DATA PROCESSING & REPRODUCTION 2.3%
*Bay Networks Inc. ......................................... United States 300,000 9,675,000
*Newbridge Networks Corp. .................................. Canada 256,000 6,128,000
*ODS Networks Inc. ......................................... United States 489,200 3,179,800
------------
18,982,800
------------
ELECTRICAL & ELECTRONICS 4.6%
*DSC Communications Corp. .................................. United States 326,500 9,795,000
General Electric Co. Plc. .................................. United Kingdom 1,325,000 11,440,710
Motorola Inc. .............................................. United States 10,000 525,625
Philips Electronics NV...................................... Netherlands 135,000 11,348,442
*Scitex Corp. Ltd. ......................................... Israel 360,000 4,702,500
------------
37,812,277
------------
</TABLE>
12
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 1998 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
ELECTRONIC COMPONENTS & INSTRUMENTS .9%
Intel Corp. ................................................ United States 96,000 $ 7,116,000
------------
ENERGY SOURCES 5.7%
Amerada Hess Corp. ......................................... United States 50,000 2,715,625
Hub Power Co. Ltd., GDR, 144A............................... Pakistan 310,000 2,160,015
Rao Gazprom, ADR, 144A...................................... Russia 390,300 4,361,603
Repsol SA................................................... Spain 25,000 1,376,641
Societe Elf Aquitane SA..................................... France 55,000 7,732,385
Total SA, B................................................. France 100,000 13,000,331
Valero Energy Corp., new.................................... United States 161,400 5,366,550
YPF Sociedad Anonima, ADR................................... Argentina 333,000 10,010,813
------------
46,723,963
------------
FINANCIAL SERVICES 1.8%
Fannie Mae.................................................. United States 220,000 13,365,000
Merrill Lynch & Co. Inc. ................................... United States 20,000 1,845,000
------------
15,210,000
------------
FOOD & HOUSEHOLD PRODUCTS
Cafe de Coral Holdings Ltd. ................................ Hong Kong 1,000 342
------------
FOREST PRODUCTS & PAPER 2.3%
*Asia Pacific Resources International Hldgs. Ltd., A........ Indonesia 1,923,775 3,486,842
Assidomaen AB............................................... Sweden 234,900 6,833,540
Bowater Inc. ............................................... United States 10,000 472,500
Carter Holt Harvey Ltd. .................................... New Zealand 3,084,890 2,690,297
*Empaques Ponderosa SA de CV, B............................. Mexico 3,000,000 1,869,575
Enso OY, R.................................................. Finland 69,400 746,311
Fletcher Challenge Ltd. Forestry Division................... New Zealand 4,652,452 2,608,296
Georgia Pacific Corp. ...................................... United States 5,000 294,688
Georgia Pacific Timber Group................................ United States 5,000 115,313
------------
19,117,362
------------
HEALTH & PERSONAL CARE 2.0%
Astra AB, B................................................. Sweden 266,667 5,316,688
Medeva Plc. ................................................ United Kingdom 988,516 2,820,373
Windmere-Durable Holdings Inc. ............................. United States 225,000 8,057,813
------------
16,194,874
------------
INDUSTRIAL COMPONENTS .4%
BTR Plc. ................................................... United Kingdom 1,015,625 2,897,719
------------
INSURANCE 5.2%
Ace Ltd. ................................................... Bermuda 309,000 12,051,000
American International Group Inc. .......................... United States 75,000 10,950,000
GIO Australia Holdings Ltd. ................................ Australia 2,000,000 5,132,333
National Mutual Asia Ltd. .................................. Hong Kong 10,338,000 6,604,174
Presidential Life Corp. .................................... United States 375,000 8,015,625
------------
42,753,132
------------
</TABLE>
13
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 1998 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
LEISURE & TOURISM 2.2%
Kuoni Reisen Holding AG, B.................................. Switzerland 3,660 $ 18,169,699
------------
MACHINERY & ENGINEERING 1.7%
Rauma OY, ADR............................................... Finland 353,700 7,339,275
VA Technologie AG, 144A..................................... Austria 57,300 7,129,223
------------
14,468,498
------------
MERCHANDISING 2.1%
*BJ's Wholesale Club Inc. .................................. United States 140,000 5,687,500
*Cifra SA de CV............................................. Mexico 627,753 943,097
*Homebase Inc. ............................................. United States 140,000 1,111,250
Storehouse Plc. ............................................ United Kingdom 2,300,000 9,632,262
------------
17,374,109
------------
METALS & MINING 2.2%
Aluminum Co. of America..................................... United States 10,000 659,375
Boehler Uddeholm AG, 144A................................... Austria 58,500 3,864,989
Companhia Siderurgica Nacional Sid Nacional CSN............. Brazil 151,111,000 3,786,267
Elkem AS.................................................... Norway 501,000 6,006,646
Trelleborg AB, B............................................ Sweden 324,500 4,272,467
------------
18,589,744
------------
MULTI-INDUSTRY .4%
Jardine Strategic Holdings Ltd. ............................ Hong Kong 1,656,137 3,146,660
PT Bimantara Citra.......................................... Indonesia 8,975,000 166,765
------------
3,313,425
------------
REAL ESTATE
PT Jaya Properties.......................................... Indonesia 3,598,000 42,544
------------
RECREATION & OTHER CONSUMER GOODS .5%
Yue Yuen Industrial (Holdings) Ltd. ........................ Hong Kong 2,453,600 4,385,613
------------
TELECOMMUNICATIONS 11.2%
Lucent Technologies Inc. ................................... United States 242,000 20,131,375
Nokia AB, A................................................. Finland 320,000 23,621,832
Tele Danmark AS, B.......................................... Denmark 9,500 911,735
Telecom Italia SpA, di Risp................................. Italy 1,703,050 8,286,506
Telefonica de Argentina SA, B, ADR.......................... Argentina 277,414 8,998,617
Telefonica Del Peru SA, B, ADR.............................. Peru 171,500 3,505,031
Telefonica SA............................................... Spain 340,000 15,746,293
Telefonos de Mexico SA (Telmex), ADR, L..................... Mexico 226,050 10,864,528
Videsh Sanchar Nigam Ltd., GDR, 144A........................ India 77,600 803,160
------------
92,869,077
------------
TRANSPORTATION .4%
Air New Zealand Ltd., B..................................... New Zealand 2,408,000 2,587,487
Guangshen Railway Co. Ltd., ADR............................. China 163,200 1,111,800
------------
3,699,287
------------
</TABLE>
14
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 1998 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
UTILITIES ELECTRICAL & GAS 6.1%
British Energy Ltd., 144A .................................. United Kingdom 2,942,800 $ 25,728,755
Centrais Eletricas Brasileiras SA (Electrobras)............. Brazil 237,540,000 6,982,846
*Centrais Geradoras Do Sul Do Brasil SA (Gerasul)........... Brazil 237,540,000 324,497
Cia Energetica de Minas Gerais, ADR......................... Brazil 275,348 8,570,411
Iberdrola SA................................................ Spain 515,000 8,376,445
------------
49,982,954
------------
TOTAL COMMON STOCKS (COST $342,482,133)..................... 534,579,594
------------
PREFERRED STOCKS 4.8%
Banco Bradesco SA, pfd. .................................... Brazil 508,140,000 4,239,626
Cia Vale do Rio Doce, pfd., ADR............................. Brazil 330,000 6,562,338
Coteminas Cia Tecidos Norte de Minas (CTNM), pfd. .......... Brazil 11,918,000 1,674,455
Empresa Nacional de Comercio Redito Participacoe, pfd. ..... Brazil 11,918,000 29,883
Petroleo Brasileiro SA (Petrobras), pfd. ................... Brazil 42,000,000 7,807,366
Philippine Long Distance Telephone Co., cvt., 7.00%, pfd.
ser. 3.................................................... Philippines 105,000 4,830,000
Telecomunicacoes Brasileiras SA (Telebras), pfd., ADR....... Brazil 135,000 14,740,313
------------
TOTAL PREFERRED STOCKS (COST $36,905,429)................... 39,883,981
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT**
--------
<S> <C> <C> <C>
BONDS 2.3%
Banco Nacional de Mexico SA, cvt., 7.00%, 12/15/99.......... Mexico $10,910,000 10,691,800
Government of Italy, cvt., 5.00%, 6/28/01................... Italy 5,235,000 8,709,731
------------
TOTAL BONDS (COST $16,430,240).............................. 19,401,531
------------
SHORT TERM INVESTMENTS 27.0%
Fannie Mae, 5.44%, 7/01/98.................................. United States 34,293,000 34,293,000
Federal Farm Credit Banks
5.50%, 9/01/98............................................ United States 37,790,000 37,784,369
5.51%, 8/03/98............................................ United States 35,000,000 34,997,235
5.53%, 10/01/98........................................... United States 97,500,000 97,510,920
U.S. Treasury Bills, 5.035% to 5.11%, with maturities to
11/12/98.................................................. United States 18,664,000 18,338,670
------------
TOTAL SHORT TERM INVESTMENTS (COST $222,908,428)............ 222,924,194
------------
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENTS (COST
$618,726,230)............................................. 816,789,300
------------
</TABLE>
15
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 1998 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
PRINCIPAL
COUNTRY AMOUNT** VALUE
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
(a)REPURCHASE AGREEMENTS 12.7%
Dresdner Bank AG, 5.65%, 7/01/98 (Maturity Value
$35,005,493) Collateralized by U.S. Treasury Bills........ United States $35,000,000 $ 35,000,000
Merrill Lynch & Co. Inc., 5.80%, 7/01/98 (Maturity Value
$35,005,639) Collateralized by U.S. Treasury Bills........ United States 35,000,000 35,000,000
Swiss Bank Corp., 5.96%, 7/01/98 (Maturity Value
$35,005,794) Collateralized by U.S. Treasury Bills........ United States 35,000,000 35,000,000
------------
TOTAL REPURCHASE AGREEMENTS (COST $105,000,000)............. 105,000,000
------------
TOTAL INVESTMENTS (COST $723,726,230) 111.6%................ 921,789,300
OTHER ASSETS, LESS LIABILITIES (11.6%)...................... (96,150,655)
------------
TOTAL NET ASSETS 100.0%..................................... $825,638,645
============
</TABLE>
*Non-income producing.
**Securities traded in U.S. dollars.
(a)See Note 1(c) regarding repurchase agreements.
See Notes to Financial Statements.
16
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (cost $618,726,230).... $816,789,300
Repurchase agreements, at value and cost................... 105,000,000
Cash....................................................... 251
Receivables:
Investment securities sold................................ 447,098
Fund shares sold.......................................... 3,928,657
Dividends and interest.................................... 3,369,764
Other assets............................................... 25,342
------------
Total assets.......................................... 929,560,412
------------
Liabilities:
Payables:
Investment securities purchased........................... 97,502,021
Fund shares redeemed...................................... 5,149,086
To affiliates............................................. 1,125,222
Accrued liabilities........................................ 145,438
------------
Total liabilities..................................... 103,921,767
------------
Net assets, at value........................................ $825,638,645
============
Net assets consist of:
Undistributed net investment income........................ $ 12,336,363
Net unrealized appreciation................................ 198,063,070
Accumulated net realized loss.............................. (21,996,977)
Beneficial shares.......................................... 637,236,189
------------
Net assets, at value........................................ $825,638,645
============
CLASS I:
Net asset value per share ($786,404,805 / 50,061,069 shares
outstanding)............................................. $15.71
============
Maximum offering price per share (15.71 / 94.25%).......... $16.67
============
CLASS II:
Net asset value per share ($39,233,840 / 2,531,342 shares
outstanding)*............................................ $15.50
============
Maximum offering price per share (15.50 / 99.00%).......... $15.66
============
</TABLE>
*Redemption price per share is equal to net asset value less any applicable
sales charge.
See Notes to Financial Statements.
17
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Statements (continued)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C>
Investment Income:
(net of foreign taxes of $1,388,814)
Dividends.................................................. $ 11,444,445
Interest................................................... 7,402,137
------------
Total investment income............................... $ 18,846,582
Expenses:
Management fees (Note 3)................................... 3,360,136
Administrative fees (Note 3)............................... 556,387
Distribution fees (Note 3)
Class I................................................... 1,000,759
Class II.................................................. 196,680
Transfer agent fees (Note 3)............................... 427,000
Custodian fees............................................. 134,000
Reports to shareholders.................................... 72,035
Registration and filing fees............................... 64,000
Professional fees.......................................... 36,000
Trustees' fees and expenses................................ 28,000
Other...................................................... 18,068
------------
Total expenses........................................ 5,893,065
------------
Net investment income............................. 12,953,517
------------
Realized and unrealized gains (losses):
Net realized loss from:
Investments............................................... (21,453,197)
Foreign currency transactions............................. (117,120)
------------
Net realized loss..................................... (21,570,317)
Net unrealized appreciation on investments............ 46,824,511
------------
Net realized and unrealized gain............................ 25,254,194
------------
Net increase in net assets resulting from operations........ $ 38,207,711
============
</TABLE>
See Notes to Financial Statements.
18
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Statements (continued)
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
-------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 12,953,517 $ 17,928,804
Net realized gain (loss) from investments and foreign
currency transactions................................... (21,570,317) 56,831,220
Net unrealized appreciation on investments................ 46,824,511 18,738,843
-------------------------------------
Net increase in net assets resulting from operations.... 38,207,711 93,498,867
Distributions to shareholders from:
Net investment income:
Class I.................................................. (769,166) (17,851,213)
Class II................................................. (37,970) (635,878)
Net realized gains:
Class I.................................................. (14,614,151) (47,840,555)
Class II................................................. (721,427) (1,940,548)
Capital share transactions (Note 2):
Class I.................................................. (21,033,856) 125,392,016
Class II................................................. (238,671) 28,123,894
-------------------------------------
Net increase in net assets.............................. 792,470 178,746,583
Net assets:
Beginning of period........................................ 824,846,175 646,099,592
-------------------------------------
End of period.............................................. $825,638,645 $824,846,175
=====================================
Undistributed net investment income included in net assets:
End of period.............................................. $ 12,336,363 $ 189,982
=====================================
</TABLE>
See Notes to Financial Statements.
19
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Notes to Financial Statements (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Templeton Global Opportunities Trust (the Fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end investment company.
The Fund seeks long-term capital growth by a flexible policy of investing in the
equity and debt securities of companies and governments of any nation. The
following summarizes the Fund's significant accounting policies.
a. SECURITY VALUATION:
Securities listed or traded on a recognized national exchange or NASDAQ are
valued at the latest reported sales price. Over-the-counter securities and
listed securities for which no sale is reported are valued within the range of
the latest quoted bid and asked prices. Securities for which market quotations
are not readily available are valued at fair value as determined by management
in accordance with procedures established by the Board of Trustees.
b. FOREIGN CURRENCY TRANSLATION:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against U.S. dollars on the date of valuation. Purchases and sales of
securities and income items denominated in foreign currencies are translated
into U.S. dollars at the exchange rate in effect on the transaction date. When
the Fund purchases or sells foreign securities it will customarily enter into a
foreign exchange contract to minimize foreign exchange risk from the trade date
to the settlement date of such transactions.
The Fund does not separately report the effect of changes in foreign exchange
rates from changes in market prices on securities held. Such changes are
included in net realized and unrealized gain or loss from investments.
Realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the recorded amounts
of dividends, interest, and foreign withholding taxes, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in foreign exchange rates on
foreign currency denominated assets and liabilities other than investments in
securities held at the end of the reporting period.
c. REPURCHASE AGREEMENTS:
The Fund may enter into repurchase agreements, which are accounted for as a loan
by the Fund to the seller, collateralized by securities which are delivered to
the Fund's custodian. The market value, including accrued interest, of the
initial collateralization is required to be at least 102% of the dollar amount
invested by the Fund, with the value of the underlying securities marked to
market daily to maintain coverage of at least 100%. At June 30, 1998, all
outstanding repurchase agreements held by the Fund had been entered into on that
date.
d. INCOME TAXES:
No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute all of its taxable income.
20
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Notes to Financial Statements (unaudited) (continued)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.)
e. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS:
Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Certain income from foreign securities is recorded as soon as information is
available to the Fund. Interest income and estimated expenses are accrued daily.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date.
Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.
f. ACCOUNTING ESTIMATES:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
2. BENEFICIAL STOCK
The Fund offers two classes of shares: Class I and Class II shares. The shares
differ by their initial sales load, distribution fees, voting rights on matters
affecting a single class and the exchange privilege of each class.
At June 30, 1998, there were an unlimited number of shares authorized ($0.01 par
value). Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
-----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS I SHARES:
Shares sold............................................ 14,210,316 $ 223,757,483 17,195,097 $ 281,507,387
Shares issued on reinvestment of distributions......... 886,162 13,778,626 3,859,713 58,207,367
Shares redeemed........................................ (16,368,302) (258,569,965) (13,121,848) (214,322,738)
-----------------------------------------------------------------
Net increase (decrease)................................ (1,271,824) $ (21,033,856) 7,932,962 $ 125,392,016
=================================================================
</TABLE>
21
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Notes to Financial Statements (unaudited) (continued)
2. BENEFICIAL STOCK (CONT.)
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
--------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS II SHARES:
Shares sold................................................. 392,752 $ 6,069,294 1,773,264 $28,763,454
Shares issued on reinvestment of distributions.............. 44,101 678,265 154,119 2,299,060
Shares redeemed............................................. (451,495) (6,986,230) (181,625) (2,938,620)
--------------------------------------------------------
Net increase (decrease)..................................... (14,642) $ (238,671) 1,745,758 $28,123,894
========================================================
</TABLE>
3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Certain officers of the Fund are also directors or officers of Templeton
Investment Counsel, Inc. (TICI), Franklin Templeton Services, Inc. (FT
Services), Franklin/Templeton Distributors, Inc. (Distributors) and
Franklin/Templeton Investor Services, Inc. (Investor Services), the Fund's
investment manager, administrative manager, principal underwriter, and transfer
agent, respectively.
The Fund pays an investment management fee to TICI of 0.80% per year of the
average daily net assets of the fund. The Fund pays an administrative fee to FT
Services based on the Fund's average daily net assets as follows:
<TABLE>
<CAPTION>
ANNUALIZED
FEE RATE AVERAGE DAILY NET ASSETS
- -----------------------------------------------------------------
<S> <C>
0.15% First $200 million
0.135% Over $200 million, up to and including $700 million
0.10% Over $700 million, up to and including $1.2 billion
0.075% Over $1.2 billion
</TABLE>
The Fund reimburses Distributors up to 0.25% and 1.00% per year of the average
daily net assets of Class I and Class II shares, respectively, for costs
incurred in marketing the Fund's Class I and Class II shares. Under the Class I
distribution plan, costs exceeding the maximum may be reimbursed in subsequent
periods. At June 30, 1998, unreimbursed costs were $1,422,712. Distributors
received net commissions from sales of fund shares, and received contingent
deferred sales charges for the period of $295,500 and $17,779, respectively.
Legal fees of $28,311 were paid to a law firm in which a partner is an officer
of the Fund.
22
PAGE
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Notes to Financial Statements (unaudited) (continued)
4. INCOME TAXES
The cost of securities for income tax purposes is the same as that shown in the
Statement of Investments. At June 30, 1998, the net unrealized appreciation
based on the cost of investments for income tax purposes was as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $251,484,399
Unrealized depreciation..................................... (53,421,329)
------------
Net unrealized appreciation................................. $198,063,070
============
</TABLE>
5. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding short-term securities) for the
period ended June 30, 1998 aggregated $0 and $15,276,429, respectively.
23
PAGE
This page intentionally left blank
PAGE
LITERATURE REQUEST
For a free brochure and prospectus, which contain more complete information,
including charges and expenses, call Franklin Templeton Fund Information at
1-800/DIAL BEN(R) (1-800/342-5236). Please read the prospectus carefully
before investing or sending money. To ensure the highest quality of service,
telephone calls to or from our service departments may be monitored, recorded
and accessed. These calls can be determined by the presence of a regular beeping
tone.
FRANKLIN TEMPLETON GROUP
GLOBAL GROWTH
Franklin Global Health Care Fund
Mutual Discovery Fund
Templeton Developing
Markets Trust
Templeton Foreign Fund
Templeton Foreign Smaller
Companies Fund
Templeton Global
Infrastructure Fund
Templeton Global
Opportunities Trust
Templeton Global
Real Estate Fund
Templeton Global
Smaller Companies Fund
Templeton Greater European Fund
Templeton Growth Fund
Templeton Latin America Fund
Templeton Pacific Growth Fund
Templeton World Fund
GLOBAL GROWTH AND INCOME
Franklin Global Utilities Fund
Mutual European Fund
Templeton Global Bond Fund
Templeton Growth and
Income Fund
GLOBAL INCOME
Franklin Global Government
Income Fund
Franklin Templeton Global
Currency Fund
Franklin Templeton Hard
Currency Fund
Templeton Americas Government
Securities Fund
GROWTH
Franklin Biotechnology
Discovery Fund
Franklin Blue Chip Fund
Franklin California Growth Fund
Franklin DynaTech Fund
Franklin Equity Fund
Franklin Gold Fund
Franklin Growth Fund
Franklin MidCap Growth Fund
Franklin Small Cap
Growth Fund
GROWTH AND INCOME
Franklin Asset Allocation Fund
Franklin Balance Sheet
Investment Fund*
Franklin Convertible
Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Franklin MicroCap Value Fund*
Franklin Natural Resources Fund
Franklin Real Estate
Securities Fund
Franklin Rising Dividends Fund
Franklin Strategic Income Fund
Franklin Utilities Fund
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Mutual Beacon Fund
Mutual Financial Services Fund
Mutual Qualified Fund
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Templeton American Trust, Inc.
FUND ALLOCATOR SERIES
Franklin Templeton Conservative
Target Fund
Franklin Templeton Moderate
Target Fund
Franklin Templeton Growth
Target Fund
INCOME
Franklin Adjustable Rate
Securities Fund
Franklin Adjustable U.S.
Government Securities Fund
Franklin's AGE High Income Fund
Franklin Bond Fund
Franklin Floating Rate Trust
Franklin Investment Grade
Income Fund
Franklin Short-Intermediate
U.S. Government Securities Fund
Franklin U.S. Government
Securities Fund
Franklin Money Fund
Franklin Federal Money Fund
FRANKLIN FUNDS SEEKING
TAX-FREE INCOME
Federal Intermediate-Term
Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund
Puerto Rico Tax-Free
Income Fund
Tax-Exempt Money Fund
FRANKLIN STATE-SPECIFIC
FUNDS SEEKING
TAX-FREE INCOME
Alabama
Arizona**
Arkansas***
California**
Colorado
Connecticut
Florida**
Georgia
Hawaii***
Indiana
Kentucky
Louisiana
Maryland
Massachusetts+
Michigan**
Minnesota+
Missouri
New Jersey
New York**
North Carolina
Ohio+
Oregon
Pennsylvania
Tennessee***
Texas
Virginia
Washington***
VARIABLE ANNUITIES++
Franklin Valuemark(R)
Franklin Templeton
Valuemark Income Plus
(an immediate annuity)
*These funds are now closed to new accounts, with the exception of retirement
plan accounts.
**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.
++Franklin Valuemark and Franklin Templeton Valuemark Income Plus are issued by
Allianz Life Insurance Company of North America or by its wholly owned
subsidiary, Preferred Life Insurance Company of New York, and distributed by
NALAC Financial Plans, LLC. The Franklin Valuemark Funds are managed by Franklin
Advisers, Inc. and its Templeton and Franklin affiliates. 07/98
PAGE
TEMPLETON GLOBAL
OPPORTUNITIES TRUST
PRINCIPAL UNDERWRITER
Franklin/Templeton Distributors, Inc.
777 Mariners Island Blvd.
San Mateo, CA 94404-1585
1-800/DIAL BEN(R)
www.franklin-templeton.com
SHAREHOLDER SERVICES
1-800-632-2301
FUND INFORMATION
1-800-342-5236
This report must be preceded or accompanied by the current prospectus of
Templeton Global Opportunities Trust, which contains more complete information
including risk factors, charges and expenses. Like any investment in securities,
the Fund's portfolio will be subject to the risk of loss from market, currency,
economic, political, and other factors, as well as investment decisions by the
Investment Manager which will not always be profitable or wise. The Fund and
Fund investors are not protected from such losses by the Investment Manager.
Therefore, investors who cannot accept the risk of such losses should not invest
in shares of the Fund.
To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
determined by the presence of a regular beeping tone.
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