TEMPLETON INSTITUTIONAL FUNDS INC
N-30D, 1995-03-10
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TEMPLETON INSTITUTIONAL FUNDS, INC.
GLOBAL FIXED INCOME SERIES
FOR THE YEAR END
DECEMBER 31, 1994


Principal Underwriter:

Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg, Florida 33701-3628

Account Services
1-800-684-4001

Sales Information
1-800-362-6243

This report must be preceded or accompanied by the prospectus of the Templeton
Institutional Funds, Inc. Like any investment in securities, the value of The
Fund's portfolio will be subject to the risk of loss from market, currency,
economic, political and other factors, as well as investment decisions by the
investment manager which will not always be profitable or wise.  The Fund and
its investors are not protected from such losses by the investment manager.
Therefore, investors who cannot accept this risk should not invest in shares of
the Fund.


<PAGE>

December 31, 1994


Dear Shareholder:

We are pleased to bring the annual report for the Templeton Institutional 
Funds, Inc. (TIFI) Global Fixed Income Series for the period ended 
December  31, 1994.

During the period, the fundOs share price decreased $2.00 per share, from 
$9.93 to $7.93.  Income distributions from the fund totaled $1.61 per share
and capital gains distributions totaled $0.09 per share.  The fundOs total 
return figures for the periods ended December 31, 1994 were as follows:

<TABLE>
<CAPTION>

							                           Since Inception
				                One-Year		     May, 3, 1993
             				   ---------    	-----------------
<S>				             <C>			        <C>
Average Annual	       -2.97%	           -1.02%
Cumulative	           -2.97%	            -1.68%
</TABLE>


Average annual total return figures represent the average annual increase in
value of an investment over the specified periods. Cumulative total return 
figures show the change in value of an investment over the period indicated,
assuming the reinvestment  of dividends and capital gains distributions. The
fund's manager is waiving a portion of its management fees, which reduces 
operating expenses.  Without these reductions the fundOs total return would
have been lower.  The fee waiver may be discontinued at when redeemed, may be
worth more or less than their original cost.  Past performance cannot 
guarantee future results.

In an environment of rising global bond yields and tightening liquidity 
conditions, the TIFI Global Fixed Income Series maintained a defensive post-
ure during most of the annual period.  The fund eliminated non-U.S. holdings
in May and June of 1994 due to a decline in net assets in the fund and a con-
sequent inability to fully diversify foreign holdings.  The resulting al-
location to short-term U.S. assets helped to preserve capital in a bear 
market for global bonds.  Diversification of the fund back into non-U.S. assets
will only occur with an increase in assets under management.

We look forward to the future with confidence and appreciate your continued 
support.

Sincerely,

/s/ DONALD F. REED

Don Reed
President
Templeton Institutional Funds, Inc.



/s/ TOM LATTA

Tom Latta
Portfolio Manager
Vice President
TIFI Global Fixed Income Series


Cumulative Total Return Since Inception
TIFI Global Fixed Income Series vs. Salomon Global Bond Index and CPI

[GRAPH APPEARS HERE SHOWING COMPARISION BETWEEN TITI GLOBAL FIXED INCOME 
SERIES, SALOMON GLOBAL BOND INDEX AND CPI]

<TABLE>
<CAPTION>

					                            	5/03/93		  12/31/94
						                           ---------		-----------
<S>                             <C>         <C>
TIFI Global Fixed Income Series	 		 -0-       	-1.68
Salomon Global Bond Index					      -0-         6.38
CPI									                        -0-         3.96
</TABLE>


Cumulative total returns since inception show the change in value of an 
investment over the period indicated, assuming the reinvestment  of dividends
and capital gains distributions.  The Salomon Global Bond Index and the Con-
sumer Price Index (CPI) are unmanaged.  One cannot invest directly in an 
index.  The fund's manager is waiving a portion of its management fees, which
reduces operating expenses.  Without these reductions the fund's total return
would have been lower.  The fee waiver may be discontinued at any time after
December 31, 1995.


<PAGE>


TEMPLETON INSTITUTIONAL FUNDS, INC.
GLOBAL FIXED INCOME SERIES
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

<TABLE>
<CAPTION>

                                                            Period from       
                                                            May 3, 1993       
                                                         (commencement of     
                                    Year ended           operations) to
                              December 31, 1994         December 31, 1993     
                              ------------------        ------------------
<S>                           <C>                       <C>
Net asset value, 
 beginning of period                $9.93                   $10.00            
                                  -------                   -------
                                                            
Income from investment 
operations:                                                 
  Net investment income             2.74                       .25            
  Net realized and unrealized 
    loss                           (3.04)                     (.11)           
                                  --------                  --------    
     Total from investment 
       operations                   (.30)                      .14            
                                  --------                  ---------         
                  
                                                      
Distributions:                                                    
  Dividends from net investment 
    income                          (1.61)                     (.16)
  Distributions from net 
    realized gains                     -                        (.05)
  Return of capital                  (.09)                        -
                                    -------                  ---------
     Total distributions            (1.70)                      (.21)
                                    -------                  ---------
Change in net asset value           (2.00)                      (.07)
                                    -------                  ---------
Net asset value, end of period      $7.93                      $9.93
                                    =======                  =========
TOTAL RETURN *                      (2.97)%                     1.36%         

RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000)         $98                       $712 
Ratio of expenses to average 
 net assets                         12.15%                      9.70% **
Ratio of expenses, net of reim-
  bursement, to average net assets   1.00%                      1.00%   **    
Ratio of net investment income to 
  average net assets                 5.61%                      4.91% **
Portfolio turnover rate            346.26%                    252.80%
</TABLE>

* Not annualized for periods of less than one year.
**Annualized.


See Notes to Financial Statements.



<PAGE>

TEMPLETON INSTITUTIONAL FUNDS, INC. 
GLOBAL FIXED INCOME SERIES
FINANCIAL STATEMENT

STATEMENT OF ASSETS AND LIABILITIES 
DECEMBER 31, 1994

<TABLE>
<CAPTION>

<S>                                                         <C>
Assets:
  Investment in securities, at value 
      (identified cost $100,418)                      $ 99,706 
  Cash                                                   2,323 
  Receivables:
      Interest                                           2,412
      Other                                              3,954
      Unamortized organization costs                     4,756
                                                      --------
            Total assets                               113,151

Liabilities:
  Accrued expenses                                      14,804
                                                      ---------
            Total liabilities                           14,804
                                                      ---------
Net assets, at value                                  $ 98,347
                                                      =========
Net assets consist of:
  Unrealized depreciation                                 (646)
  Accumulated net realized loss                        (54,100)
  Net capital paid in on shares of
   capital stock                                       153,093
                                                      ---------
Net assets, at value                                  $ 98,347 
                                                      =========

Shares outstanding                                      12,398
                                                      =========

Net asset value per share
  ($98,347/12,398)                                       $7.93 
                                                      =========

</TABLE>






                            See Notes to Financial 


<PAGE>

STATEMENT OF OPERATIONS                                     
FOR THE YEAR ENDED DECEMBER 31, 1994                                    
<TABLE>                                   
<S>                                                   <C>         <C>         
                        
Interest income                                                   $29,457 
                                    
Expenses:                                 
      Management fees (Note 3 )                       $2,453 
      Administrative fees (Note 3)                       495 
      Custodian fees                                   2,700
      Reports to shareholders                         14,500 
      Audit fees                                       8,650
      Legal fees                                       4,000
      Registration and filing fees                    13,000
      Directors'  fees and expenses                    6,000
      Amortization of organization costs               1,424 
      Other                                              928 
                                                      -------
      Total expenses                                  54,150  
      Less expenses reimbursed (Note 3)              (49,700)
                                                     --------- 
            Total expenses less reimbursement                     4,450
                                                                  ------
                  Net investment income                           25,007 


Realized and unrealized gain (loss):
      Net realized gain (loss) on:
       Investments                                  (40,510)
        Foreign currency transactions               (11,904)
                                                    ---------
                                                    (52,414)
                                                    ---------
      Net unrealized depreciation on:
          Investments                                (7,312)      
          Foreign currency translation of                         
             other assets and liabilities            (1,263)
                                                   ----------     
                                                     (8,575)
                                                   ----------
            Net realized and unrealized  loss                     (60,989)
                                                                  ---------
Net decrease in net assets resulting 
  from operations                                                 ($35,982)
                                                                  =========

</TABLE>




                      See Notes to Financial Statements.


<PAGE>

TEMPLETON INSTITUTIONAL FUNDS, INC.
GLOBAL FIXED INCOME SERIES
- ----------------------------------------------------------------------------
FINANCIAL STATEMENTS (CONT)


STATEMENTS OF CHANGES IN NET ASSETS 
<TABLE>
<CAPTION>
                                                            For May 3, 1993
                                                            (commencement of  
                                      Year ended            operations) to
                                    December 31, 1994       December 31, 1993
                                    ------------------      -----------------
<S>                                 <C>                     <C>
Increase (decrease) in net assets:
   Operations:
      Net investment income                $25,007                $17,621 
      Net realized loss from security  
       and foreign currency transactions  (52,414)                (13,507)
      Net unrealized appreciation 
       (depreciation) during the year      (8,575)                  7,929
                                          ---------               --------
      Net increase (decrease) in net 
       assets resulting from operations   (35,982)                 12,043     

  Distributions to shareholders:
      From net investment income          (16,404)                (11,242)
      From net realized capital gain          -                    (3,161)
      From return of capital                 (949)                    -
      Capital share transactions 
          (Note 2)                       (560,361)                 614,403    
                                          ---------               --------
          Net increase (decrease) in 
            net assets                   (613,696)                 612,043

Net assets:
      Beginning of period                 712,043                  100,000 
                                          --------                ---------
      End of period                       $98,347                 $712,043
                                          ========                =========

</TABLE>






                      See Notes to Financial Statements.


<PAGE>



TEMPLETON INSTITUTIONAL FUNDS, INC.                               
GLOBAL FIXED INCOME SERIES                                  VALUE
- ------------------------------------------------------------------------------
INVESTMENT PORTFOLIO  December 31, 1994         

            BONDS-GOVERNMENT & GOVERNMENT AGENCIES: 
             (COST $30,717) 30.6%
30,000      U.S.  U.S. Treasury Note, 7.50%, 1/31/96        $30,056 
                                                            ---------
            SHORT TERM OBLIGATIONS: 70.8% (COST $69,701)          
70,000      U.S.  U.S. Treasury Bills,          
                     4.80% to 5.07%, with                   ----------
                     maturities to 5/4/95                    69,650 
                                                            ----------
            TOTAL INVESTMENTS: 101.4%   (cost $100,418)      99,706           
            OTHER ASSETS, LESS LIABILITIES: (1.4%)           (1,359)
                                                            ----------
            TOTAL NET ASSETS:  100.0%                       $98,347 
                                                            ==========
                                    
Currency of countries indicated.                                  
                                    







                      See Notes to Financial Statements.                      
            

<PAGE>

TEMPLETON INSTITUTIONAL FUNDS, INC. 
GLOBAL FIXED INCOME SERIES
- ---------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENT


1.  SUMMARY OF ACCOUNTING POLICIES 

Global Fixed Income Series (the Fund) is a separate series of Templeton
Institutional Funds, Inc. (the Company) which is an open-end, diversified
management investment company registered under the Investment Company Act of
1940.  The following summarizes the Fund's significant accounting policies.

A. SECURITIES VALUATIONS:

Securities listed or traded on a recognized national or foreign stock exchange
or NASDAQ are valued at the last reported sales prices on the principal exchange
on which the securities are traded.  Over-the-counter securities and listed
securities for which no sale is reported are valued at the mean between the last
current bid and asked prices.  Securities for which market quotations are not
readily available are valued at fair value as determined by management and
approved in good faith by the Board of Directors.


B.  FOREIGN CURRENCY TRANSLATIONS:

Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation.  Purchases and
sales of portfolio securities and income items denominated in foreign cur-
rencies are translated into U.S. dollar amounts on the respective dates of 
such transactions.  When the Fund purchases or sells foreign securities it 
customarily enters into foreign exchange contracts to minimize foreign ex-
change risk between the trade date and the settlement date of such transactions.

The Fund does not isolate that portion of the results of operations resulting 
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held.  Such fluctuations are
included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, the differences between the amounts
of dividends, interest, and foreign withholding taxes recorded on the Fund's
books, and the U.S. dollar equivalent of the amounts actually received or paid. 
Net unrealized foreign exchange gains and losses arise from changes in the value
of assets and liabilities other than investments in securities at the end of the
fiscal period, resulting from changes in the exchange rate.

C. INCOME TAXES:

It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all its
taxable income to its shareholders.  Therefore, no provision has been made for
income taxes.



<PAGE>

D. UNAMORTIZED ORGANIZATIONS COSTS:

Organization costs are being amortized on a straight line basis over a five year
period.

E. SECURITY TRANSACTIONS, INVESTMENT INCOME, DISTRIBUTIONS AND EXPENSES:

Security transactions are accounted for on a trade date basis.  Dividend income
is recorded on ex-dividend date. Certain dividend income on foreign securities
are recorded as soon as information is available to the Fund.  Interest income
and estimated expenses are accrued daily. Distributions to shareholders which 
are determined in accordance with income tax regulations, are recorded on the 
ex-dividend date.


2.  TRANSACTIONS IN SHARES OF CAPITAL STOCK 

At December 31, 1994, there were 520 million shares of $.01 par value capital 
stock authorized of which 10 million have been classified as Fund shares. 
Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
                                                       PERIOD FROM MAY 3, 1993
                                                           (COMMENCEMENT OF
                                   YEAR ENDED               OPERATIONS) TO
                                 DECEMBER 31, 1994        DECEMBER 31, 1993 
                                 ---------------------  --------------------
                                 SHARES       AMOUNT     SHARES     AMOUNT
                                 -------     ----------  ------   --------
<S>                              <C>          <C>        <C>          <C>

Shares Sold                       8,465       $ 85,000    60,261   $600,000  
Shares issued on reinvest-
ment of distributions             2,191         17,352     1,457     14,403 
Shares redeemed                (69,976)       (662,713)       -        - 
                              ----------      ---------  -------   -------  
               
Net decrease                  (59,320)        $(560,361)  61,178   $614,403  
                              ==========      ==========  =======  ========

</TABLE>

Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 100% of the Fund's shares as of December 31, 1994.

3.  INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES 

The Fund pays monthly an investment management fee to Templeton Investment
Counsel, Inc. equal, on an annual basis, to 0.55% of the average daily net
assets of the Fund. Certain officers of the Company are also directors or 
officers of Templeton Global Investors, Inc. (TGII), Franklin Templeton 
Distributors, Inc. (FTD), and Franklin Templeton Investor Services, Inc. 
(FTIS), the Company's administrative manager, distributor and transfer agent,
respectively.  The Fund pays TGII monthly its allocated share of an adminis-
trative fee of 0.15% per annum on the first $200 million of the Company's 
aggregate average daily net assets, 0.135% of the next $500 million, 0.10% of
the next $500 million and 0.075% per annum of such average net assets in ex-
cess of $1.2 billion.  TGII has voluntarily agreed to limit the total 
expenses of the Fund to an annual rate of 1.00% of the Fund's average net
assets through December 31, 1994.  The amount of reimbursement for the year
ended December 31, 1994 is set forth in the Statement of Operations. 
For the December 31, 1994, FTD and FTIS received no amounts with respect to the
fund.
 
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel for
the Funds, which firm received fees of $4,000 for the year ended December 31,
1994.


<PAGE>

4.  PURCHASES AND SALES OF SECURITIES 

Purchases and sales of securities (excluding short-term securities) for the year
ended December 31, 1994 were $1,244,680 and $1,860,339, respectively.  The cost
of securities for federal income tax purposes is the same as that shown in the
investment portfolio.  Realized gains and losses are reported on an identified
cost basis.

At December 31, 1994, the aggregate gross unrealized appreciation and
depreciation of portfolio securities, based on cost for federal income tax
purposes, was as follows:

<TABLE>
      <S>                                     <C>
      Unrealized appreciation                 $   --
      Unrealized depreciation                    (712)
                                              ---------
      Net unrealized depreciation             $  (712)     
                                              =========
</TABLE>



<PAGE>

TEMPLETON INSTITUTIONAL FUNDS, INC.
GLOBAL FIXED INCOME SERIES
- ------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT


The Board of Directors and Shareholders
Templeton Institutional Funds, Inc. - Global Fixed Income Series

We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of the Global Fixed Income  Series of Templeton
Institutional Funds, Inc. as of December 31, 1994, and the related statement of
operations for the year then ended and the statement of changes in net assets
and the financial highlights for the year then ended and the period from 
May 3, 1993 (commencement of operations) to December 31, 1993.  These fin-
ancial statements and financial highlights are the responsibility of the 
Fund's management.  Our responsibility is to express an opinion on these 
financial statements and financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing stand-
ards. Those standards require that we plan and perform the audit to obtain 
reasonable assurance about whether the financial statements and financial 
highlights are free of material misstatement.  An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the fin-
ancial statements.  Our procedures included confirmation of securities owned
as of December 31, 1994, by correspondence with the custodian.   An audit 
also includes assessing the accounting principles used and significant 
estimates made by management, as well as evaluating the overall financial 
statement presentation.  We believe that our audits provide a reasonable 
basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Global Fixed Income Series of Templeton Institutional Funds, Inc.  as of Dec-
ember 31, 1994, the results of its operations, the changes in its net assets
and the financial highlights for the periods indicated, in conformity with 
generally accepted accounting principles.



                                              /s/ MCGLADREY & PULLEN, LLP



New York, New York
February 3, 1995



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