SEMI ANNUAL REPORT
June 30, 2000
Templeton Global
Opportunities Trust
[FRANKLIN TEMPLETON INVESTMENT GRAPHIC]
<PAGE>
[50 YEAR GRAPHIC]
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.
[BEVERIDGE PHOTO]
Mark R. Beveridge, CFA, CIC
Portfolio Manager
Templeton Global Opportunities Trust
We're on the Web --
Now you can access online information about your fund, including this
shareholder report. Find our Web site at franklintempleton.com, your online
resource for fund literature, prices and performance, investor information and
around-the-clock account services.
<PAGE>
SHAREHOLDER LETTER
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YOUR FUND'S GOAL: TEMPLETON GLOBAL OPPORTUNITIES TRUST SEEKS LONG-TERM CAPITAL
GROWTH. UNDER NORMAL MARKET CONDITIONS, THE FUND INVESTS PRIMARILY IN THE EQUITY
SECURITIES OF COMPANIES LOCATED ANYWHERE IN THE WORLD, INCLUDING DEVELOPING OR
EMERGING MARKETS.
--------------------------------------------------------------------------------
Dear Shareholder:
This semiannual report of Templeton Global Opportunities Trust covers the six
months ended June 30, 2000. During the reporting period, continued economic
strength in the U.S., combined, in part, with an increase in demand from many
Asian countries, led to moderate European economic growth. In Asia, much of the
rebound in the region seemed to have lost momentum, at least temporarily,
resulting in relatively weak performance from many stock markets there. And in
Latin America, many countries benefited from increased investor confidence in
the region and an improvement in commodity prices. Within this environment,
Templeton Global Opportunities Trust - Class A posted a 3.09% six-month
cumulative total return, as shown on the Performance Summary on page 7. The
Fund's benchmark, the Morgan Stanley Capital
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
Shareholder Letter .................................................... 1
Performance Summary ................................................... 7
Financial Highlights &
Statement of Investments .............................................. 9
Financial Statements .................................................. 17
Notes to Financial
Statements ............................................................ 20
</TABLE>
[FUND CATEGORY PYRAMID GRAPHIC]
The dollar value, number of shares or principal value, and complete legal titles
of all portfolio holdings are listed in the Fund's Statement of Investments
(SOI). The SOI begins on page 12.
<PAGE>
GEOGRAPHIC DISTRIBUTION
Based on Total Net Assets
6/30/00
[PIE CHART GRAPHIC]
Europe 44.7%
North America 27.4%
Asia 18.5%
Latin America 4.8%
Australia/New Zealand 3.0%
Short-Term Investments & Other Net Assets 1.6%
TOP 10 COUNTRIES
Based on equity securities
6/30/00
<TABLE>
<CAPTION>
% OF TOTAL
COUNTRY NET ASSETS
--------------------------------------------------------------------------------
<S> <C>
U.S. 23.0%
Japan 10.6%
United Kingdom 9.9%
France 8.1%
Netherlands 6.6%
Germany 5.7%
Hong Kong 4.1%
Spain 4.0%
Brazil 4.0%
Italy 3.3%
</TABLE>
International All Country (MSCI AC) World Free Index, posted a cumulative total
return of - 2.56% for the same period.(1)
NORTH AMERICA
Because of the relatively high prices of U.S. stocks, we did not find many new
bargains in the United States. As a result, the Fund remained underweighted in
the U.S. relative to the MSCI AC World Free Index. However, in general, our U.S.
holdings performed well. Two of our U.S. holdings, Pharmacia, a leading
pharmaceutical company, and Lyondell Chemical, a petrochemical operator, rose
45% and 31%, respectively.(2) The Fund's performance was also helped by our
position in FNMA (Fannie Mae), a key participant in the mortgage industry, that
appreciated significantly and that we sold for a profit during the period.
EUROPE
During the six months under review, European economies generally improved as
rising exports, privatization and corporate restructuring benefited many
companies. Economic strength was particularly evident in the Scandinavian region
and the United Kingdom. Along with this overall economic improvement, Europe
experienced a trend of consolidation across many industries. Examples include
the merger of Scandinavian and German banks, the combination of Rhone - Poulenc,
the French pharmaceutical firm, with Germany's Hoechst Corp., and the joining of
two French oil firms, Total and
(1.) Source: Standard & Poor's Micropal. The unmanaged MSCI AC World Free Index
measures the performance of securities located in 48 countries, including
emerging markets in Latin America, Asia and eastern Europe. It includes
reinvested dividends. One cannot invest directly in an index, nor is an index
representative of the Fund's portfolio.
(2.) Please remember that other securities held by the Fund in this market, and
securities held in other markets mentioned in this report, may not have
experienced such positive returns and, in fact, some securities probably lost
value during the reporting period.
2
<PAGE>
Elf Aquitaine. This corporate activity contributed to a reassessment of European
equity values and increased share prices for many companies.
As in the U.S., increasing demand and concerns about inflation led both the
British Central Bank and the European Central Bank to raise interest rates.
Rising rates caused many investors to lower their expectations of future
economic growth, adversely affecting the price of many European technology
stocks. However, we continued to find some European equities attractive, and the
Fund remained overweighted in Europe compared to the MSCI AC World Index.
European holdings that contributed positively to the Fund's performance during
the period included Nycomed Amersham, a U.K.-based medical equipment company,
and Alcatel, one of the largest telecommunications equipment providers in the
world, which appreciated 66% and 47%, respectively.(2) The Fund also realized
significant gains by selling shares of Philips Electronics.
ASIA
As noted previously, Asia's economic rebound seemed to have lost momentum during
the reporting period. Further economic growth of developing nations in the
region will, in our opinion, require investment from developed countries to
increase manufacturing capacity. In Japan, the government's efforts to stimulate
the economy through capital projects appeared unsuccessful, leaving the nation
with a high budget deficit. And the attempt to add liquidity by lowering
interest rates proved to be ineffective. In fact, interest rates in the
short-term money market approached levels close to 0%.(3) This
TOP 10 SECTORS
Based on equity securities
6/30/00
% OF TOTAL
SECTOR NET ASSETS
--------------------------------------------------------------------
Insurance 11.2%
Banks 10.1%
Diversified Telecommunication Services 8.5%
Pharmaceuticals 8.0%
Oil & Gas 6.3%
Communications Equipment 6.1%
Electric Utilities 5.4%
Machinery 4.5%
Household Durables 3.4%
Diversified Financials 3.2%
(3.) Source: Organisation for Economic Co-operation and Development.
3
<PAGE>
TOP 10 EQUITY HOLDINGS
6/30/00
<TABLE>
<CAPTION>
COMPANY % OF TOTAL
SECTOR, COUNTRY NET ASSETS
<S> <C>
Alcatel SA 2.2%
Communications
Equipment, France
American International Group Inc. 2.0%
Insurance, U.S.
Nippon Telegraph & 1.9%
Telephone Corp.
Diversified Telecommunication
Services, Japan
AXA SA 1.9%
Insurance, France
SBC Communications Inc 1.8%
Diversified Telecommunication
Services, U.S.
Intel Corp. 1.8%
Semiconductor Equipment &
Products, U.S.
Nomura Securities Co. Ltd. 1.8%
Diversified Financials, Japan
IHC Caland NV 1.7%
Machinery, Netherlands
Pharmacia Corp. 1.7%
Pharmaceuticals, U.S.
3Com Corp. 1.7%
Communications
Equipment, U.S.
</TABLE>
could make further easing of fiscal and monetary policy challenging and reduce
the prospects for a fast turnaround of Japan's economy.
In our opinion, Japanese stocks were generally more expensive relative to stocks
of similar companies in the rest of the world, and at the end of the period, we
were underweighted in that nation compared to the MSCI AC World Index. However,
since the start of the year, our holdings in Nomura Securities, the Japanese
brokerage firm, improved 35%, and Kurita Water, the Japanese water purification
company, produced gains of 38%.(2) During the period, we also sold some shares
in Sony, the electronics manufacturer, at a significant profit.
LATIN AMERICA
Many Latin American equity markets began 2000 with an upswing that was largely a
result of increased confidence in the region, coupled with an improvement in
demand and prices for Latin American exports such as oil and copper. During the
reporting period, Brazil continued to maintain its heavy debt burden, and Mexico
benefited from increasing exports to the U.S. However, uncertainty about the
Mexican presidential election in early July led to weakness in the peso, and,
taking advantage of gains achieved during the previous year, we reduced our
investments in Telefonos de Mexico, the Mexican telephone company, and Wal-Mart
de Mexico.
Late in the period, several Latin American equity markets suffered from the
decline in the U.S. Nasdaq Composite Index. Equity markets in the region have
large telecommunications weightings (over 40% in Brazil), which correlates
closely with the technology sector
4
<PAGE>
worldwide. Not surprisingly, the indexes that represent these markets collapsed
when the Nasdaq(R) fell. Higher U.S. interest rates, which could translate into
a slowing export market for Latin America, also contributed to the decline.
LOOKING FORWARD
Although we are optimistic about long-term prospects for global equity markets
and for Templeton Global Opportunities Trust, our current outlook for the
remainder of 2000 is cautious. Due to the prospect of higher interest rates,
both in the U.S. and abroad, we currently anticipate that overall market
performance in the U.S. may be mediocre. Despite generally expected moderate
economic growth in Europe, we believe the technology sector there may continue
to be hurt by rate increases. Prospects for Latin American equity markets are
difficult to assess because the continued strength in the world economy is
positive for Latin America, but high U.S. and European interest rates could
cause a slowdown in economies there. In any case, we shall continue to search
for stocks whose prices, we believe, are low in relation to our analysis of
their long-term earnings potential.
There are, of course, special risks involved with investing related to currency,
economic, social, political, and other factors. Emerging market securities
involve heightened risks related to the same factors, in addition to those
associated with their relatively small size and lesser liquidity. Investing in
any emerging market means accepting a certain amount of volatility and, in some
cases, the consequences of severe market corrections. For example, Mexico's
equity market has increased 4,341% in the past 15 years, but has suffered eight
5
<PAGE>
quarterly declines of more than 15% during that time.(4) While short-term
volatility can be disconcerting, declines of more than 50% are not unusual in
emerging markets. The Fund's definition of "emerging markets" as used by the
Fund's manager may differ from the definition of the same terms as used in
managing other Franklin Templeton funds. These special risks and other
considerations are discussed in the Fund's prospectus.
We thank you for your participation in Templeton Global Opportunities Trust and
look forward to helping you meet your investment objectives in the years to
come.
Sincerely,
/s/MARK R. BEVERIDGE
Mark R. Beveridge, CFA, CIC
Portfolio Manager
Templeton Global Opportunities Trust
--------------------------------------------------------------------------------
This discussion reflects our views, opinions and portfolio holdings as of June
30, 2000, the end of the reporting period. The information provided is not a
complete analysis of every aspect of any country, industry, security or the
Fund. Our strategies and the Fund's portfolio composition will change depending
on market and economic conditions. Although historical performance is no
guarantee of future results, these insights may help you understand our
investment and management philosophy.
--------------------------------------------------------------------------------
(4.) Source: Mexico's Bolsa Index. Based on quarterly percentage price change
over 15 years ended June 30, 2000. Market return is measured in U.S. dollars and
does not include reinvested dividends.
6
<PAGE>
SIX-MONTH PERFORMANCE SUMMARY AS OF 6/30/00
Six-month total return does not include sales charges. Distributions will vary
based on earnings of the Fund's portfolio and any profits realized from the sale
of the portfolio's securities, as well as the level of operating expenses for
each class. Past distributions are not indicative of future trends. All total
returns include reinvested distributions at net asset value.
CLASS A
<TABLE>
<S> <C> <C>
Six-Month Total Return 3.09%
Net Asset Value (NAV) $16.33 (6/30/00) $17.12 (12/31/99)
Change in NAV -$0.79
Distributions (1/1/00-6/30/00) Dividend Income $0.0437
Short-Term Capital Gain $0.0975
Long-Term Capital Gain $1.1280
---------------------------------
Total $1.2692
</TABLE>
CLASS B
<TABLE>
<S> <C> <C>
Six-Month Total Return 3.08%
Net Asset Value (NAV) $16.26 (6/30/00) $17.04 (12/31/99)
Change in NAV -$0.78
Distributions (1/1/00-6/30/00) Dividend Income $0.0426
Short-Term Capital Gain $0.0975
Long-Term Capital Gain $1.1280
---------------------------------
Total $1.2681
</TABLE>
CLASS C
<TABLE>
<S> <C> <C>
Six-Month Total Return 2.68%
Net Asset Value (NAV) $16.11 (6/30/00) $16.96 (12/31/99)
Change in NAV -$0.85
Distributions (1/1/00-6/30/00) Dividend Income $0.0426
Short-Term Capital Gain $0.0975
Long-Term Capital Gain $1.1280
---------------------------------
Total $1.2681
</TABLE>
CLASS A: Subject to the current, maximum 5.75% initial sales charge. Prior to
January 1, 1992, Fund shares were offered at a higher initial sales charge.
Thus, actual total returns would have been lower. Effective January 1, 1993, the
Fund implemented a Rule 12b-1 plan, which affects subsequent performance.
CLASS B: Subject to no initial sales charge, but subject to a contingent
deferred sales charge (CDSC) declining from 4% to 0% over six years. These
shares have higher annual fees and expenses than Class A shares.
CLASS C: Subject to 1% initial sales charge and 1% CDSC for shares redeemed
within 18 months of investment. These shares have higher annual fees and
expenses than Class A shares.
Past performance does not guarantee future results. 7
<PAGE>
(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 current,
applicable, maximum sales charge(s) for that class.
(3.) These figures represent the value of a hypothetical $10,000 investment in
the Fund over the periods indicated and include the current, applicable, maximum
sales charge(s) for that class.
--------------------------------------------------------------------------------
Since markets can go down as well as up, investment return and principal value
will fluctuate with market conditions, currency volatility and the social,
economic and political climates of countries where the Fund invests. 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.
--------------------------------------------------------------------------------
ADDITIONAL PERFORMANCE
<TABLE>
<CAPTION>
INCEPTION
CLASS A 1-YEAR 5-YEAR 10-YEAR (1/19/90)
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cumulative Total Return(1) 18.73% 87.90% 243.74% 262.02%
Average Annual Total Return(2) 11.93% 12.10% 12.48% 12.61%
Value of $10,000 Investment(3) $11,193 $17,705 $32,410 $34,132
</TABLE>
<TABLE>
<CAPTION>
INCEPTION
CLASS B 1-YEAR (1/1/99)
----------------------------------------------------------------------------
<S> <C> <C>
Cumulative Total Return(1) 18.37% 30.20%
Average Annual Total Return(2) 14.37% 16.83%
Value of $10,000 Investment(3) $11,437 $12,620
</TABLE>
<TABLE>
<CAPTION>
INCEPTION
CLASS C 1-YEAR 5-YEAR (5/1/95)
----------------------------------------------------------------------------
<S> <C> <C> <C>
Cumulative Total Return(1) 17.93% 81.39% 92.93%
Average Annual Total Return(2) 15.73% 12.42% 13.35%
Value of $10,000 Investment(3) $11,573 $17,960 $19,106
</TABLE>
For updated performance figures, see "Prices and Performance" at
franklintempleton.com, or call Franklin Templeton at 1-800/342-5236.
8 Past performance does not guarantee future results.
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Highlights
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 --------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE+
(For a share outstanding throughout the
period)
Net asset value, beginning of period.......... $17.12 $14.63 $15.32 $14.62 $12.57 $11.84
-------------------------------------------------------------------------
Income from investment operations:
Net investment income........................ .09 .25 .39 .38 .30 .16
Net realized and unrealized gains (losses)... .39 3.53 (.48) 1.70 2.69 1.33
-------------------------------------------------------------------------
Total from investment operations.............. .48 3.78 (.09) 2.08 2.99 1.49
-------------------------------------------------------------------------
Less distributions from:
Net investment income........................ (.04) (.34) (.32) (.37) (.30) (.16)
In excess of net investment income........... -- -- -- -- (.06) --
Net realized gains........................... (1.23) (.95) (.28) (1.01) (.58) (.60)
-------------------------------------------------------------------------
Total distributions........................... (1.27) (1.29) (.60) (1.38) (.94) (.76)
-------------------------------------------------------------------------
Net asset value, end of period................ $16.33 $17.12 $14.63 $15.32 $14.62 $12.57
=========================================================================
Total Return*................................. 3.09% 27.17% (.61)% 14.53% 24.19% 12.87%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's)............. $648,205 $682,277 $656,108 $786,219 $634,478 $510,777
Ratios to average net assets:
Expenses..................................... 1.44%** 1.42% 1.41% 1.37% 1.45% 1.52%
Net investment income........................ 1.13%** 1.61% 2.38% 2.30% 2.10% 1.19%
Portfolio turnover rate....................... 44.29% 48.46% 3.09% 26.21% 18.54% 15.54%
</TABLE>
*Total return does not reflect sales commissions and is not annualized.
**Annualized.
+Based on average weighted shares outstanding effective year ended December 31,
1999.
9
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Highlights (continued)
<TABLE>
<CAPTION>
CLASS B
-----------------------------------
SIX MONTHS
ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999+
-----------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE++
(For a share outstanding throughout the period)
Net asset value, beginning of period........................ $17.04 $14.63
-----------------------------------
Income from investment operations:
Net investment income...................................... .04 .08
Net realized and unrealized gains.......................... .45 3.58
-----------------------------------
Total from investment operations............................ .49 3.66
-----------------------------------
Less distributions from:
Net investment income...................................... (.04) (.30)
Net realized gains......................................... (1.23) (.95)
-----------------------------------
Total distributions......................................... (1.27) (1.25)
-----------------------------------
Net asset value, end of period.............................. $16.26 $17.04
===================================
Total Return*............................................... 3.08% 26.31%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's)........................... $472 $346
Ratios to average net assets:
Expenses................................................... 2.18%** 2.20%
Net investment income...................................... .47%** .52%
Portfolio turnover rate..................................... 44.29% 48.46%
</TABLE>
*Total return does not reflect the contingent deferred sales charge and is not
annualized.
**Annualized.
+Effective date of Class B shares was January 1, 1999.
++Based on average weighted shares outstanding effective year ended December 31,
1999.
10
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Highlights (continued)
<TABLE>
<CAPTION>
CLASS C
---------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995+
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE++
(For a share outstanding throughout the
period)
Net asset value, beginning of period.......... $16.96 $14.50 $15.17 $14.52 $12.53 $12.26
---------------------------------------------------------------------------
Income from investment operations:
Net investment income........................ .03 .13 .24 .18 .24 .02
Net realized and unrealized gains (losses)... .39 3.50 (.43) 1.77 2.63 .88
---------------------------------------------------------------------------
Total from investment operations.............. .42 3.63 (.19) 1.95 2.87 .90
---------------------------------------------------------------------------
Less distributions from:
Net investment income........................ (.04) (.22) (.20) (.29) (.24) (.12)
In excess of net investment income........... -- -- -- -- (.06) --
Net realized gains........................... (1.23) (.95) (.28) (1.01) (.58) (.51)
---------------------------------------------------------------------------
Total distributions........................... (1.27) (1.17) (.48) (1.30) (.88) (.63)
---------------------------------------------------------------------------
Net asset value, end of period................ $16.11 $16.96 $14.50 $15.17 $14.52 $12.53
===========================================================================
Total Return*................................. 2.68% 26.28% (1.29)% 13.74% 23.28% 7.43%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's)............. $27,322 $32,410 $33,423 $38,627 $11,622 $2,264
Ratios to average net assets:
Expenses..................................... 2.18%** 2.16% 2.16% 2.12% 2.20% 2.22%**
Net investment income (loss)................. .42%** .87% 1.62% .93% 1.12% (.01)%**
Portfolio turnover rate....................... 44.29% 48.46% 3.09% 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.
++Based on average weighted shares outstanding effective year ended December
31,1999.
See Notes to Financial Statements.
11
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS 94.4%
AEROSPACE & DEFENSE 2.3%
BAE Systems PLC............................................. United Kingdom 1,504,900 $ 9,317,772
Raytheon Co., A............................................. United States 326,500 6,346,344
------------
15,664,116
------------
AIR FREIGHT & COURIERS .9%
Airborne Freight Corp. ..................................... United States 312,625 5,920,336
------------
AUTO COMPONENTS 1.0%
Goodyear Tire & Rubber Co. ................................. United States 330,460 6,609,200
------------
AUTOMOBILES .7%
Volkswagen AG............................................... Germany 132,010 5,099,501
------------
BANKS 9.5%
Australia & New Zealand Banking Group Ltd. ................. Australia 1,357,690 10,442,138
Banca Nazionale del Lavoro SpA.............................. Italy 1,787,410 6,287,906
Banco Popular Espanol SA.................................... Spain 232,030 7,206,177
BNP Paribas................................................. France 89,630 8,660,235
Deutsche Bank AG............................................ Germany 73,910 6,202,619
Foreningssparbanken AB, A................................... Sweden 524,110 7,708,379
HSBC Holdings PLC........................................... Hong Kong 832,000 9,499,057
Svenska Handelsbanken, A.................................... Sweden 565,850 8,257,759
------------
64,264,270
------------
BIOTECHNOLOGY .8%
*CellTech Group PLC......................................... United Kingdom 298,565 5,749,197
------------
CHEMICALS 4.1%
Akzo Nobel NV............................................... Netherlands 120,020 5,119,522
Clariant AG................................................. Switzerland 20,430 7,613,665
Imperial Chemical Industries PLC............................ United Kingdom 722,350 5,549,641
Lyondell Chemical Co. ...................................... United States 228,750 3,831,562
*Ucar International Inc. ................................... United States 417,150 5,449,022
------------
27,563,412
------------
COMMERCIAL SERVICES & SUPPLIES .4%
*Gartner Group Inc., B...................................... United States 309,950 3,060,756
------------
COMMUNICATIONS EQUIPMENT 6.1%
*3Com Corp. ................................................ United States 198,810 11,456,426
Alcatel SA, ADR............................................. France 220,567 14,667,706
Lucent Technologies Inc. ................................... United States 91,680 5,432,040
Motorola Inc. .............................................. United States 30,000 871,875
Nokia Corp., A.............................................. Finland 176,120 9,023,440
------------
41,451,487
------------
</TABLE>
12
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 2000 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
CONSTRUCTION & ENGINEERING 1.3%
Kurita Water Industries Ltd. ............................... Japan 386,000 $ 8,518,596
------------
DIVERSIFIED FINANCIALS 3.2%
ING Groep NV................................................ Netherlands 119,220 8,090,923
Merrill Lynch & Co. Inc. ................................... United States 17,770 2,043,550
Nomura Securities Co. Ltd. ................................. Japan 482,000 11,821,652
------------
21,956,125
------------
DIVERSIFIED TELECOMMUNICATION SERVICES 7.8%
*Korea Telecom Corp., ADR................................... South Korea 107,285 5,189,912
Nippon Telegraph & Telephone Corp. ......................... Japan 972 12,953,263
Philippine Long Distance Telephone Co., ADR................. Philippines 17,410 309,028
Philippine Long Distance Telephone Co., 7.00%, GDR.......... Philippines 93,280 3,428,040
SBC Communications Inc. .................................... United States 285,990 12,369,068
Telecom Corp. of New Zealand Ltd. .......................... New Zealand 877,220 3,076,487
*Telecom Italia SpA......................................... Italy 859,673 5,713,079
*Telefonica SA.............................................. Spain 240,270 5,182,005
Telefonos de Mexico SA (Telmex), L, ADR..................... Mexico 83,190 4,752,229
------------
52,973,111
------------
ELECTRIC UTILITIES 5.4%
CLP Holdings Ltd. .......................................... Hong Kong 1,752,500 8,160,783
E.On AG..................................................... Germany 158,210 7,658,453
Iberdrola SA, Br. .......................................... Spain 606,810 7,852,397
*Korea Electric Power Corp., ADR............................ South Korea 379,770 7,002,009
National Power PLC.......................................... United Kingdom 874,190 5,564,844
------------
36,238,486
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.4%
Hitachi Ltd. ............................................... Japan 672,000 9,717,499
------------
FOOD & DRUG RETAILING 1.0%
Albertson's Inc. ........................................... United States 202,645 6,737,946
------------
FOOD PRODUCTS .6%
Unilever NV................................................. Netherlands 619,100 3,751,227
------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.4%
Nycomed Amersham PLC........................................ United Kingdom 966,440 9,384,340
------------
HEALTH CARE PROVIDERS & SERVICES .2%
*Patterson Dental Co. ...................................... United States 27,600 1,407,600
------------
</TABLE>
13
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 2000 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
HOUSEHOLD DURABLES 3.4%
Koninklijke Philips Electronics NV.......................... Netherlands 148,560 $ 7,034,684
Newell Rubermaid Inc. ...................................... United States 324,000 8,343,000
Sony Corp. ................................................. Japan 82,800 7,747,460
------------
23,125,144
------------
INSURANCE 11.2%
Ace Ltd. ................................................... Bermuda 256,110 7,171,080
Allstate Corp. ............................................. United States 218,270 4,856,508
American International Group Inc. .......................... United States 116,575 13,697,563
AON Corp. .................................................. United States 284,150 8,826,408
AXA SA...................................................... France 74,980 11,858,920
AXA SA, 144A................................................ France 6,248 988,191
*Muenchener Rueckversicherungs-Gesellschaft................. Germany 35,030 11,013,611
Mutual Risk Management Ltd. ................................ Bermuda 306,650 5,308,878
XL Capital Ltd., A.......................................... Bermuda 84,390 4,567,609
Zurich Allied PLC........................................... United Kingdom 647,080 7,611,323
------------
75,900,091
------------
MACHINERY 4.5%
IHC Caland NV............................................... Netherlands 241,190 11,790,852
*Invensys PLC............................................... United Kingdom 448,718 1,681,241
Komatsu Ltd. ............................................... Japan 1,384,000 9,758,178
Metso OYJ, ADR.............................................. Finland 319,389 3,752,821
Weir Group PLC.............................................. United Kingdom 1,309,240 3,686,492
------------
30,669,584
------------
MARINE .8%
Peninsular & Oriental Steam Navigation Co. ................. United Kingdom 668,410 5,696,820
------------
MEDIA 1.3%
Wolters Kluwer NV........................................... Netherlands 329,620 8,815,228
------------
METALS & MINING 1.7%
Barrick Gold Corp. ......................................... Canada 392,100 7,131,319
Yamato Kogyo Co. Ltd. ...................................... Japan 984,000 4,557,063
------------
11,688,382
------------
MULTILINE RETAIL 1.0%
Marks & Spencer PLC......................................... United Kingdom 1,482,820 5,196,616
*Wal-Mart de Mexico SA de CV, V............................. Mexico 557,583 1,308,495
------------
6,505,111
------------
</TABLE>
14
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 2000 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
OIL & GAS 4.8%
Amerada Hess Corp. ......................................... United States 44,420 $ 2,742,935
Eni SpA..................................................... Italy 1,804,690 10,448,533
Repsol SA................................................... Spain 333,120 6,657,674
Total Fina Elf SA, B........................................ France 51,177 7,878,366
Valero Energy Corp. ........................................ United States 143,380 4,552,315
------------
32,279,823
------------
PAPER & FOREST PRODUCTS 2.4%
*Asia Pulp & Paper Co. Ltd., ADR............................ Indonesia 740,110 3,746,807
Carter Holt Harvey Ltd. .................................... New Zealand 8,236,100 7,172,715
Georgia-Pacific Timber Co. ................................. United States 250,605 5,419,333
------------
16,338,855
------------
PHARMACEUTICALS 8.0%
Abbott Laboratories......................................... United States 254,060 11,321,549
Aventis SA.................................................. France 148,220 10,861,757
*Elan Corp. PLC, ADR........................................ Irish Republic 233,740 11,321,781
Merck KGAA.................................................. Germany 286,410 8,785,246
Pharmacia Corp. ............................................ United States 227,389 11,753,169
------------
54,043,502
------------
REAL ESTATE .5%
Cheung Kong Holdings Ltd. .................................. Hong Kong 293,000 3,241,857
------------
ROAD & RAIL 2.2%
Canadian National Railway Co. .............................. Canada 193,030 5,614,897
Nippon Express Co. Ltd. .................................... Japan 1,050,000 6,460,470
Stagecoach Holdings PLC..................................... United Kingdom 2,351,790 2,607,878
------------
14,683,245
------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS 2.8%
*Hyundai Electronics Industries Co. ........................ South Korea 325,940 6,430,959
Intel Corp. ................................................ United States 91,050 12,172,247
------------
18,603,206
------------
TEXTILES & APPAREL .7%
Yue Yuen Industrial Holdings Ltd. .......................... Hong Kong 2,034,600 4,515,359
------------
WATER UTILITIES .7%
*Thames Water Group PLC..................................... United Kingdom 356,220 4,581,027
------------
WIRELESS TELECOMMUNICATION SERVICES .3%
Smartone Telecommunications Holdings Ltd. .................. Hong Kong 1,007,200 2,228,805
------------
TOTAL COMMON STOCKS (COST $529,335,246)..................... 638,983,244
------------
</TABLE>
15
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
STATEMENT OF INVESTMENTS, JUNE 30, 2000 (UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS 4.0%
Banco Bradesco SA, pfd. .................................... Brazil 433,058,240 $ 3,768,855
*Cia Vale do Rio Doce, ADR, A, pfd. ........................ Brazil 273,520 7,726,940
Petroleo Brasileiro SA, pfd. ............................... Brazil 348,245 10,520,705
Tele Norte Leste Participacoes SA, ADR, pfd. ............... Brazil 1 24
Tele Sudeste Celular Participacoes SA, ADR, pfd. ........... Brazil 7,740 236,070
Telecomunicacoes Brasileiras SA, ADR, pfd. ................. Brazil 38,700 3,758,738
Telecomunicacoes de Sao Paulo SA, ADR, pfd. ................ Brazil 38,700 715,950
------------
TOTAL PREFERRED STOCKS (COST $19,606,401)................... 26,727,282
------------
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT (COST
$548,941,647)............................................. 665,710,526
------------
<CAPTION>
PRINCIPAL
AMOUNT**
------------
<S> <C> <C> <C>
(A)REPURCHASE AGREEMENT (COST $10,484,000) 1.6%
Paribas Corp., 6.85%, 7/03/00 (Maturity Value $10,489,985)
Collateralized by U.S. Treasury Notes and Bonds........... United States $ 10,484,000 10,484,000
------------
TOTAL INVESTMENTS (COST $559,425,647) 100.0%................ 676,194,526
OTHER ASSETS, LESS LIABILITIES.............................. (195,981)
------------
TOTAL NET ASSETS 100.0%..................................... $675,998,545
============
</TABLE>
*Non income producing.
**Securities denominated in U.S. dollars.
(a)At June 30, 2000, all repurchase agreements held by the Fund had been entered
into on that date.
See Notes to Financial Statements.
16
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (cost $548,941,647).... $665,710,526
Repurchase agreement, at value and cost.................... 10,484,000
Cash....................................................... 658
Receivables:
Investment securities sold................................ 2,941,144
Fund shares sold.......................................... 19,858,536
Dividends and interest.................................... 1,668,099
------------
Total assets.......................................... 700,662,963
------------
Liabilities:
Payables:
Investment securities purchased........................... 18,780,809
Fund shares redeemed...................................... 4,669,872
To affiliates............................................. 960,129
Accrued expenses........................................... 253,608
------------
Total liabilities..................................... 24,664,418
------------
Net assets, at value........................................ $675,998,545
============
Net assets consist of:
Undistributed net investment income........................ $ 3,245,429
Net unrealized appreciation................................ 116,768,879
Accumulated net realized gain.............................. 103,214,163
Beneficial shares.......................................... 452,770,074
------------
Net assets, at value........................................ $675,998,545
============
CLASS A:
Net asset value per share ($648,204,531 / 39,695,781 shares
outstanding)............................................. $16.33
============
Maximum offering price per share ($16.33 / 94.25%)......... $17.33
============
CLASS B:
Net asset value and maximum offering price per share
($472,251 / 29,050 shares outstanding)*................... $16.26
============
CLASS C:
Net asset value per share ($27,321,763 / 1,695,567 shares
outstanding)*............................................. $16.11
============
Maximum offering price per share ($16.11 / 99.00%)......... $16.27
============
</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, 2000 (UNAUDITED)
<TABLE>
<S> <C> <C>
Investment Income:
(net of foreign taxes of $841,901)
Dividends.................................................. $ 7,784,397
Interest................................................... 943,192
------------
Total investment income............................... $ 8,727,589
Expenses:
Management fees (Note 3)................................... 2,715,094
Administrative fees (Note 3)............................... 472,822
Distribution fees (Note 3)
Class A................................................... 802,176
Class B................................................... 1,676
Class C................................................... 139,131
Transfer agent fees (Note 3)............................... 553,344
Custodian fees............................................. 101,578
Reports to shareholders.................................... 57,706
Registration and filing fees............................... 40,515
Professional fees.......................................... 23,507
Trustees' fees and expenses................................ 74,108
------------
Total expenses........................................ 4,981,657
------------
Net investment income........................... 3,745,932
------------
Realized and unrealized gains (losses):
Net realized gain from:
Investments............................................... 103,450,958
Foreign currency transactions............................. 190,730
------------
Net realized gain..................................... 103,641,688
Net unrealized depreciation on investments............ (77,636,692)
------------
Net realized and unrealized gain............................ 26,004,996
------------
Net increase in net assets resulting from operations........ $ 29,750,928
============
</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, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
-------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 3,745,932 $ 10,460,378
Net realized gain from investments and foreign currency
transactions............................................. 103,641,688 76,261,554
Net unrealized appreciation (depreciation) on
investments.............................................. (77,636,692) 79,455,100
-------------------------------------
Net increase in net assets resulting from operations.... 29,750,928 166,177,032
Distributions to shareholders from:
Net investment income:
Class A.................................................. (1,796,303) (13,157,053)
Class B.................................................. (504) (3,717)
Class C.................................................. (77,694) (399,045)
Net realized gains:
Class A.................................................. (50,456,911) (37,386,240)
Class B.................................................. (21,185) (10,644)
Class C.................................................. (2,235,088) (1,752,217)
Beneficial share transactions (Note 2):
Class A.................................................. (10,391,155) (82,689,462)
Class B.................................................. 136,538 313,862
Class C.................................................. (3,942,574) (5,590,927)
-------------------------------------
Net increase (decrease) in net assets................... (39,033,948) 25,501,589
Net assets:
Beginning of period........................................ 715,032,493 689,530,904
-------------------------------------
End of period.............................................. $675,998,545 $715,032,493
=====================================
Undistributed net investment income included in net assets:
End of period.............................................. $ 3,245,429 $ 1,373,998
=====================================
</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. Under normal market conditions, the
Fund invests primarily in the equity securities of companies located anywhere in
the world, including developing or emerging markets. 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. 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.
20
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Notes to Financial Statements (unaudited) (continued)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.)
d. 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 SHARES
The Fund offers three classes of shares: Class A, Class B and Class C shares.
Effective January 1, 1999, Class I and Class II shares were renamed Class A and
Class C, respectively, and a third class of shares, Class B, was established.
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, 2000, 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, 2000 DECEMBER 31, 1999
-----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A SHARES:
Shares sold....................................... 99,241,343 $ 1,593,599,236 107,472,584 $ 1,653,635,717
Shares issued on reinvestment of distributions.... 2,911,904 46,125,144 2,930,631 44,280,755
Shares redeemed................................... (102,317,377) (1,650,115,535) (115,377,897) (1,780,605,934)
-----------------------------------------------------------------------
Net decrease...................................... (164,130) $ (10,391,155) (4,974,682) $ (82,689,462)
=======================================================================
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999+
-----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS B SHARES:
Shares sold....................................... 12,950 $ 206,580 19,690 $ 304,278
Shares issued on reinvestment of distributions.... 1,259 19,878 797 12,651
Shares redeemed................................... (5,448) (89,920) (198) (3,067)
-----------------------------------------------------------------------
Net increase...................................... 8,761 $ 136,538 20,289 $ 313,862
=======================================================================
</TABLE>
21
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Notes to Financial Statements (unaudited) (continued)
2. BENEFICIAL SHARES (CONT.)
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
-----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS C SHARES:
Shares sold....................................... 3,466,111 $ 54,436,004 2,423,547 $ 37,175,846
Shares issued on reinvestment of distributions.... 135,867 2,127,673 132,511 1,963,319
Shares redeemed................................... (3,817,445) (60,506,251) (2,949,836) (44,730,092)
-----------------------------------------------------------------------
Net decrease...................................... (215,467) $ (3,942,574) (393,778) $ (5,590,927)
=======================================================================
+Effective date of Class B Shares was January 1, 1999.
</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 for costs incurred in marketing the Fund's
shares up to 0.25%, 1.00% and 1.00% per year of the average daily net assets of
Class A, Class B and Class C shares, respectively. Under the Class A
distribution plan, costs exceeding the maximum may be reimbursed in subsequent
periods. At June 30, 2000, unreimbursed costs were $2,319,054. Distributors
received net commissions from sales of fund shares and received contingent
deferred sales charges for the period of $56,699 and $9,569, respectively.
4. 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.
22
<PAGE>
TEMPLETON GLOBAL OPPORTUNITIES TRUST
Notes to Financial Statements (unaudited) (continued)
4. INCOME TAXES (CONT.)
At June 30, 2000, the net unrealized appreciation based on the cost of
investments for income tax purposes of $559,521,483 was as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $158,394,808
Unrealized depreciation..................................... (41,721,765)
------------
Net unrealized appreciation................................. $116,673,043
============
</TABLE>
5. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding short-term securities) for the six
months ended June 30, 2000 aggregated $294,393,897 and $335,402,199,
respectively.
23
<PAGE>
This page intentionally left blank.
24
<PAGE>
[FRANKLIN LOGO]
FRANKLIN(R)TEMPLETON(R)
INVESTMENTS
SEMIANNUAL REPORT
PRINCIPAL UNDERWRITER
Franklin/Templeton Distributors, Inc.
1-800/DIAL BEN(R)
franklintempleton.com
SHAREHOLDER SERVICES
1-800/632-2301
This report must be preceded or accompanied by the current Templeton Global
Opportunities Trust prospectus, 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. The Fund and its 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.
415 S00 08/00 [RECYCLE LOGO] Printed on recycled paper
