PAGE 1
000 B000000 08/31/99
000 C000000 0000869313
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 TEMPLETON CAPITAL ACCUMULATOR FUND, INC.
001 B000000 811-6198
001 C000000 9545277591
002 A000000 500 EAST BROWARD BOULEVARD SUITE 2100
002 B000000 FT LAUDERDALE
002 C000000 FL
002 D010000 33394
002 D020000 3091
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
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007 C010100 1
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007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
PAGE 2
008 A000001 TEMPLETON INVESTMENT COUNSEL, INC.
008 B000001 A
008 C000001 801-15125
008 D010001 FT LAUDERDALE
008 D020001 FL
008 D030001 33394
008 D040001 3091
010 A000001 FRANKLIN TEMPLETON SERVICES, INC.
010 B000001 8-31192
010 C010001 FT LAUDERDALE
010 C020001 FL
010 C030001 33394
010 C040001 3091
011 A000001 FRANKLIN TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-00000
011 C010001 ST. PETERSBURG
011 C020001 FL
011 C030001 33716
011 C040001 1205
012 A000001 FRANKLIN TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-00000
012 C010001 ST. PETERSBURG
012 C020001 FL
012 C030001 33716
012 C040001 1205
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
015 A000001 THE CHASE MANHATTAN BANK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 THE CHASE MANHATTAN BANK
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 D020002 1061
015 E040002 X
015 A000003 THE CHASE MANHATTAN BANK
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
015 A000004 CANADIAN IMPERIAL BANK OF COMMERCE
015 B000004 S
<PAGE> PAGE 3
015 C010004 TORONTO
015 D010004 CANADA
015 D020004 M5L 1G9
015 E040004 X
015 A000005 BANK AUSTRIA AG
015 B000005 S
015 C010005 VIENNA
015 D010005 AUSTRIA
015 D020005 A-1011
015 E040005 X
015 A000006 STANDARD CHARTERED BANK
015 B000006 S
015 C010006 DHAKA
015 D010006 BANGLADESH
015 D020006 1000
015 E040006 X
015 A000007 GENERALE BANK
015 B000007 S
015 C010007 BRUSSELS
015 D010007 BELGIUM
015 D020007 1000
015 E040007 X
015 A000008 CITIBANK, N.A.
015 B000008 S
015 C010008 SAO PAULO
015 D010008 BRAZIL
015 D020008 SP 01311-920
015 E040008 X
015 A000009 THE CHASE MANHATTAN BANK
015 B000009 S
015 C010009 LONDON
015 D010009 UNITED KINGDOM
015 D020009 EC2N4AJ
015 E040009 X
015 A000010 THE BANK OF BERMUDA LIMITED
015 B000010 S
015 C010010 HAMILTON
015 D010010 BERMUDA
015 D020010 HMDX
015 E040010 X
015 A000011 CESKOSLOVENSKA OBCHODNI BANKA, A.S.
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015 E040011 X
015 A000012 DEN DANSKE BANK
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015 C010012 COPENHAGEN
015 D010012 DENMARK
015 D020012 1091
PAGE 4
015 E040012 X
015 A000013 CITIBANK, N.A
015 B000013 S
015 C010013 CAIRO
015 D010013 EGYPT
015 E040013 X
015 A000014 MERITA BANK LTD
015 B000014 S
015 C010014 HELSINKI
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015 E040014 X
015 A000015 BANQUE PARIBAS
015 B000015 S
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015 E040017 X
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015 B000018 S
015 C010018 ATHENS
015 D010018 GREECE
015 D020018 10562
015 E040018 X
015 A000019 THE CHASE MANHATTAN BANK
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015 E040019 X
015 A000020 CITIBANK BUDAPEST RT.
015 B000020 S
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015 A000021 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
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015 D010021 INDONESIA
015 D020021 10023
015 E040021 X
015 A000022 BANK OF IRELAND
PAGE 5
015 B000022 S
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015 D010022 IRELAND
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015 E040022 X
015 A000023 BANK LEUMI LE-ISRAEL B.M.
015 B000023 S
015 C010023 TEL AVIV
015 D010023 ISRAEL
015 D020023 61000
015 E040023 X
015 A000024 BANQUE PARIBAS
015 B000024 S
015 C010024 MILAN
015 D010024 ITALY
015 D020024 20121
015 E040024 X
015 A000025 THE FUJI BANK, LIMITED
015 B000025 S
015 C010025 TOKYO
015 D010025 JAPAN
015 E040025 X
015 A000026 THE CHASE MANHATTAN BANK (M) BERHAD
015 B000026 S
015 C010026 KUALA LUMPUR
015 D010026 MALAYSIA
015 D020026 50250
015 E040026 X
015 A000027 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000027 S
015 C010027 PORT LOUIS
015 D010027 MAURITIUS
015 E040027 X
015 A000028 CHASE MANHATTAN BANK MEXICO, S.A.
015 B000028 S
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015 D010028 MEXICO
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015 A000029 BANQUE COMMERCIALE DU MAROC S.A.
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015 E040029 X
015 A000030 ABN AMRO N.V.
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015 C010030 DE BREDA
015 D010030 NETHERLANDS
015 D020030 4800
015 E040030 X
PAGE 6
015 A000031 NATIONAL NOMINEES LIMITED
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015 A000032 DEN NORSKE BANK ASA
015 B000032 S
015 C010032 OSLO
015 D010032 NORWAY
015 D020032 N-0107
015 E040032 X
015 A000033 CITIBANK, N.A.
015 B000033 S
015 C010033 LIMA
015 D010033 PERU
015 D020033 27
015 E040033 X
015 A000034 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000034 S
015 C010034 PASIG CITY
015 D010034 PHILIPPINES
015 E040034 X
015 A000035 BANK HANDLOWY W. WARSZAWIE S.A.
015 B000035 S
015 C010035 WARSAW
015 D010035 POLAND
015 D020035 00-950
015 E040035 X
015 A000036 BANCO ESPIRITO SANTO E COMERCIAL DE LISBOA SA
015 B000036 S
015 C010036 LISBON
015 D010036 PORTUGAL
015 D020036 1250
015 E040036 X
015 A000037 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000037 S
015 C010037 SHANGHAI
015 D010037 CHINA
015 D020037 200120
015 E040037 X
015 A000038 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000038 S
015 C010038 SHENZHEN
015 D010038 CHINA
015 E040038 X
015 A000039 STANDARD CHARTERED BANK
015 B000039 S
015 C010039 SINGAPORE
015 D010039 SINGAPORE
015 D020039 049909
015 E040039 X
PAGE 7
015 A000040 CESKOSLOVENSKA OBCHODNI BANKA A.S.
015 B000040 S
015 C010040 BRATISLAVA
015 D010040 SLOVAK REPUBLIC
015 D020040 815 63
015 E040040 X
015 A000041 THE STANDARD BANK OF SOUTH AFRICA LIMITED
015 B000041 S
015 C010041 JOHANNESBURG
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015 E040041 X
015 A000042 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000042 S
015 C010042 SEOUL
015 D010042 SOUTH KOREA
015 E040042 X
015 A000043 CHASE MANHATTAN BANK CMB, S.A.
015 B000043 S
015 C010043 MADRID
015 D010043 SPAIN
015 D020043 28046
015 E040043 X
015 A000044 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000044 S
015 C010044 COLOMBO
015 D010044 SRI LANKA
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015 E040044 X
015 A000045 SKANDINAVISKA ENSKILDA BANKEN
015 B000045 S
015 C010045 STOCKHOLM
015 D010045 SWEDEN
015 D020045 S-106 40
015 E040045 X
015 A000046 UBS AG
015 B000046 S
015 C010046 ZURICH
015 D010046 SWITZERLAND
015 D020046 8021
015 E040046 X
015 A000047 THE CHASE MANHATTAN BANK
015 B000047 S
015 C010047 BANGKOK
015 D010047 THAILAND
015 D020047 10500
015 E040047 X
015 A000048 THE CHASE MANHATTAN BANK
015 B000048 S
015 C010048 ISTANBUL
015 D010048 TURKEY
015 D020048 80700
PAGE 8
015 E040048 X
015 A000049 DELETE
015 A000050 BANKBOSTON, N.A.
015 B000050 S
015 C010050 MONTEVIDEO
015 D010050 URUGUAY
015 E040050 X
015 A000051 CITIBANK, N.A.
015 B000051 S
015 C010051 CARACAS
015 D010051 VENEZUELA
015 D020051 1010
015 E040051 X
015 A000052 BARCLAYS BANK OF ZIMBABWE LIMITED
015 B000052 S
015 C010052 HARARE
015 D010052 ZIMBABWE
015 E040052 X
015 A000053 BANQUE GENERALE DU LUXEMBOURG S.A.
015 B000053 S
015 C010053 LUXEMBOURG
015 D010053 LUXEMBOURG
015 D020053 L-2951
015 E040053 X
015 A000054 DELETE
015 A000055 BARCLAYS BANK OF BOTSWANA LIMITED
015 B000055 S
015 C010055 GABORONE
015 D010055 BOTSWANA
015 E040055 X
015 A000056 BARCLAYS BANK OF KENYA LIMITED
015 B000056 S
015 C010056 NAIROBI
015 D010056 KENYA
015 E040056 X
015 A000057 THE CYPRUS POPULAR BANK LTD.
015 B000057 S
015 C010057 NICOSIA
015 D010057 CYPRUS
015 D020057 1598
015 E040057 X
015 A000058 CITIBANK, N.A
015 B000058 S
015 C010058 KARACHI
015 D010058 PAKISTAN
015 D020058 74200
015 E040058 X
015 A000059 BARCLAYS BANK OF ZAMBIA LIMITED
015 B000059 S
015 C010059 LUSAKA
015 D010059 ZAMBIA
PAGE 9
015 E040059 X
015 A000060 STANDARD BANK NAMIBIA LIMITED
015 B000060 S
015 C010060 WINDHOEK
015 D010060 NAMIBIA
015 E040060 X
015 A000061 CHASE MANHATTAN BANK INTERNATIONAL
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015 C010061 MOSCOW
015 D010061 RUSSIA
015 D020061 125047
015 E040061 X
015 A000062 STANBIC BANK SWAZILAND LIMITED
015 B000062 S
015 C010062 MBABANE
015 D010062 SWAZILAND
015 E040062 X
015 A000063 CITIBANK, N.A.
015 B000063 S
015 C010063 QUITO
015 D010063 ECUADOR
015 E040063 X
015 A000064 HSBC BANK MIDDLE EAST
015 B000064 S
015 C010064 MUSCAT
015 D010064 OMAN
015 E040064 X
015 A000065 HSBC BANK MIDDLE EAST
015 B000065 S
015 C010065 MANAMA
015 D010065 BAHRAIN
015 E040065 X
015 A000066 CEDEL BANK S.A.
015 B000066 S
015 C010066 LUXEMBOURG
015 D010066 LUXEMBOURG
015 E040066 X
015 A000067 SOCIETE GENERALE DE BANQUES EN COTE D'IVOIRE
015 B000067 S
015 C010067 ABIDJAN
015 D010067 IVORY COAST
015 D020067 01
015 E040067 X
015 A000068 HSBC BANK OF MIDDLE EAST
015 B000068 S
015 C010068 RAS-BEIRUT
015 D010068 LEBANON
015 E040068 X
015 A000069 THE HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000069 S
015 C010069 MUMBAI
PAGE 10
015 D010069 INDIA
015 D020069 400 025
015 E040069 X
015 A000070 EUROCLEAR
015 B000070 S
015 C010070 BRUSSELS
015 D010070 BELGIUM
015 D020070 B-1210
015 E040070 X
015 A000071 ING BANK N.V.
015 B000071 S
015 C010071 BUCHAREST
015 D010071 ROMANIA
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015 A000072 THE FIRST NATIONAL BANK OF CHICAGO
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015 C010072 LONDON
015 D010072 UNITED KINGDOM
015 D020072 NW1 3FN
015 E040072 X
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020 A000001 MERRILL LYNCH INTL
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020 C000001 37
020 A000002 CS FIRST BOSTON
020 B000002 NEW ZELAND
020 C000002 30
020 A000003 UBS WARBURG DILLION READ
020 B000003 LONDON
020 C000003 19
020 A000004 DEUTSCHE BANK SECURITIES
020 B000004 13-2730828
020 C000004 15
020 A000005 LEHMAN BROTHERS
020 B000005 LONDON
020 C000005 15
020 A000006 SG COWAN
020 B000006 HONG KONG
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020 A000007 CANADIAN IMPERIAL BANK
020 B000007 TORONTO
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020 A000008 HONGKONG & SHANGHAI BANK
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PAGE 11
020 A000010 DRESDNER KLIENWORT SECS
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PAGE 12
025 D000004 0
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PAGE 13
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PAGE 14
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PAGE 15
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PAGE 16
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PAGE 17
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SIGNATURE /s/JAMES R. BAIO
James R. Baio
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The schedule contains summary financial information extracted from the
Templeton Capital Accumulator, Inc. August 31, 1999 annual report and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000869313
<NAME> TEMPLETON CAPITAL ACCUMULATOR FUND, INC.
<S> <C>
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3754352)
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<NUMBER-OF-SHARES-SOLD> 5135078
<NUMBER-OF-SHARES-REDEEMED> (2071924)
<SHARES-REINVESTED> 1158746
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<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (1881919)
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<AVERAGE-NET-ASSETS> 251690167
<PER-SHARE-NAV-BEGIN> 9.69
<PER-SHARE-NII> 0.18
<PER-SHARE-GAIN-APPREC> 2.78
<PER-SHARE-DIVIDEND> (0.18)
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</TABLE>
To the Board of Directors of
Templeton Capital Accumulator Fund, Inc.
In planning and performing our audit of the financial statements and financial
highlights of Templeton Capital Accumulator Fund, Inc. for the year ended August
31, 1999, we considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and financial
highlights and to comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of Templeton Capital Accumulator Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing financial
statements and financial highlights for external purposes that are fairly
presented in conformity with generally accepted accounting principles. Those
controls include the safeguarding of assets against unauthorized acquisition,
use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements and financial highlights being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving internal control and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as defined
above as of August 31, 1999.
This report is intended solely for the information and use of management, the
Board of Directors of Templeton Capital Accumulator Fund, Inc. and the
Securities and Exchange Commission.
/s/PricewaterhouseCoopers LLP
New York, New York
September 30, 1999
77 K - CHANGE IN INDEPENDENT ACCOUNTANTS
On August 13, 1999, McGladrey & Pullen, LLP (McGladrey) resigned as independent
auditors of the Fund pursuant to an agreement by PricewaterhouseCoopers LLP
(PwC) to acquire McGladrey's investment company practice. The McGladrey partners
and professionals serving the Fund at the time of the acquisition joined PwC.
The reports of McGladrey on the financial statements of the Fund during the past
two fiscal years contained no adverse opinion or disclaimer of opinion, and were
not qualified or modified as to uncertainty, audit scope or accounting
principles. In connection with its audits for the two most recent fiscal years
and through August 13, 1999, there were no disagreements with McGladrey on any
matter of accounting principle or practices, financial statement disclosure, or
auditing scope or procedure, which disagreements, if not resolved to the
satisfaction of McGladrey would have caused it to make reference to the subject
matter of disagreement in connection with its report. On August 31, 1999, the
Fund, with the approval of its Board of Directors and its Audit Committee,
engaged PwC as its independent auditors."
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street
Washington D.C. 20549
We were previously the independent accountants for Templeton Capital Accumulator
Fund, Inc. We have read their notification of change in independent accountants
made in Item 77K of Form N-SAR. We agree with the statements in the filing.
/s/MCGLADREY & PULLEN, LLP
New York, New York
October 27, 1999
