<PAGE>
Templeton American
Trust
[PHOTO] Your Fund's Objective:
Gary P. Motyl, CFA The Templeton American Trust seeks long-term total return
President through a flexible policy of investing primarily in stocks
Templeton and debt obligations of U.S. companies. The Fund may,
American Trust however, invest up to 35% of its assets in securities in
- ------------------ any foreign country, developed or underdeveloped.
- --------------------------------------------------------------------------------
Mutual funds, annuities, and other investment products:
. are not FDIC insured;
. are not deposits or obligations of, or guaranteed by, any financial
institution;
. are subject to investment risks, including possible loss of the principal
amount invested.
- --------------------------------------------------------------------------------
August 15, 1995
Dear Shareholder:
We are pleased to bring you the semi-annual report of the Templeton American
Trust for the six months ended June 30, 1995.
During this period, the U.S. equity market benefited from a convergence of
positive events. Falling interest rates, moderate economic growth, subdued
inflation, better-than-expected corporate earnings and heavy inflows of new
money into mutual funds provided a solid underpinning for U.S. stocks. In fact,
the American stock market was the best performer, in local currency terms, of
any major global market. While the Templeton American Trust produced a total
return of 12.55% for the first half of 1995, the unmanaged Standard & Poor's 500
Stock Index/(R)/ posted a 20.15% return. This underperformance primarily
reflected the portfolio's somewhat higher than normal cash position and exposure
to foreign stocks, which while posting gains did not rise as much as U.S.
stocks. Also, the U.S. market was led by very strong moves in the high
technology sectors, which because of
1
<PAGE>
their high price/earnings and price-to-book value ratios are not well-
represented in the Fund's portfolio. However, as of June 30, 1995, about 2.1% of
our total net assets were invested in Intel Corp., shares of which appreciated
greatly in value during the period under review.
The Fund's core holdings remained basically unchanged during the reporting
period. However, we did add to existing positions in Goodyear Tire & Rubber Co.
and Dayton-Hudson, a general merchandise retailer with 972 discount, moderate-
priced promotional, and traditional department stores in 33 states. We also
initiated a position in Sun Company, a major U.S. oil refiner.
On the sell side, our shares in Progress Software (a U.S. company) and Solvay
(an international chemical company based in Belgium) were sold for gains after
they appreciated to our target price. Small losses were incurred upon the sale
of our positions in Inacom Corporation and Chiquita Brands International
following our downgrading of our long-term opinions on these companies.
Although the focus of the Fund is on U.S. companies, for greater
diversification, we continued to exercise our
- --------------------------------------------------------------------------------
Templeton American Trust
Geographic Distribution on 6/30/95
Based on Total Net Assets
[PIE CHART APPEARS HERE] Latin American Stocks 0.8%
Asian Stocks 1.3%
Australian &
New Zealand Stocks 3.3%
European Stocks 7.8%
United States Stocks 56.4%
Short-Term Obligations &
Other Net Assets 30.4%
option to invest up to 35% of total net assets in foreign securities. However,
during the reporting period, our holdings of foreign securities declined from
15.3% to 13.2% of total net assets. Of course, investing in foreign securities
involves special risks related to market, currency, economic, political and
other factors. These risks are discussed in the Fund's prospectus.
While investor optimism could continue for some time, one should be aware that
there are potential negatives present which must be closely monitored. One of
these is
2
<PAGE>
the issue of global trade where a heavy-handed approach could have an adverse
effect on worldwide economic growth. Another is the continuing rise in U.S.
indebtedness on the national, local and personal levels. Also, because of the
strong performances in the equity and bond markets, risk has increased. Although
we at Templeton have never claimed any specific expertise in the area of short-
term economic forecasting, it is readily apparent to us that the U.S. economy
has been growing for some time and that a downturn is inevitable at some point.
Still, while it has become more difficult to find significantly undervalued
shares for new purchases, valuations are not yet so extended as to cause a
dramatic increase in the number of stocks qualifying for our "sell" list.
While current U.S. stock market conditions present a challenge to our analytical
team to uncover bargain-priced stocks, you can be confident that we will
continue to implement, in a disciplined fashion, the investment strategies which
have served our shareholders over the long term. Our staff of investment
professionals contin-
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Templeton American Trust
Top 10 Holdings on 6/30/95
As a Percentage of Total Net Assets
% of Total
Company, Industry Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Georgia-Pacific Corp.,
Forest Products & Paper 2.5%
- --------------------------------------------------------------------------------
Intel Corp.,
Electronic Components & Instruments 2.1%
- --------------------------------------------------------------------------------
Boeing Co.,
Aerospace & Military Technical Systems 1.8%
- --------------------------------------------------------------------------------
Shaw Industries, Inc.,
Textiles & Apparel 1.7%
- --------------------------------------------------------------------------------
Federal National Mortgage Association,
Financial Services 1.7%
- --------------------------------------------------------------------------------
Goodyear Tire & Rubber Co.,
Industrial Components 1.7%
- --------------------------------------------------------------------------------
American International Group, Inc.,
Insurance 1.6%
- --------------------------------------------------------------------------------
Plains Petroleum Co.,
Energy Sources 1.6%
- --------------------------------------------------------------------------------
Westvaco Corp.,
Forest Products & Paper 1.6%
- --------------------------------------------------------------------------------
American Stores Co.,
Merchandising 1.5%
- --------------------------------------------------------------------------------
</TABLE>
For a complete list of portfolio holdings, see page 8 of this report.
ues to grow, and the resources dedicated to helping them produce the highest
quality investment research have also been expanded.
3
<PAGE>
In closing, we would like to mention that although Sir John Templeton has not
been involved in investment management of the Templeton funds since October
1992, we were saddened by his recent decision to step down as Chairman and
Director of the U.S.-registered Templeton funds. The Fund's Board of Directors
have elected John Wm. Galbraith, former vice chairman of Templeton, Galbraith &
Hansberger, Ltd. to succeed him. The investment manager will continue to use the
investment philosophies and principles established by Sir John.
We appreciate your support, welcome your comments and look forward to serving
you in the future.
Sincerely,
/s/ Gary P. Motyl
Gary P. Motyl, CFA
President
Templeton American Trust, Inc.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Templeton American Trust
Top 10 Industries on 6/30/95
As a Percentage of Total Net Assets
% of Total
Industry Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Energy Sources 9.5%
- --------------------------------------------------------------------------------
Insurance 6.1%
- --------------------------------------------------------------------------------
Forest Products & Paper 6.1%
- --------------------------------------------------------------------------------
Transportation 5.3%
- --------------------------------------------------------------------------------
Merchandising 4.8%
- --------------------------------------------------------------------------------
Utilities - Electrical & Gas 3.7%
- --------------------------------------------------------------------------------
Banking 3.7%
- --------------------------------------------------------------------------------
Building Materials & Components 3.1%
- --------------------------------------------------------------------------------
Industrial Components 2.9%
- --------------------------------------------------------------------------------
Textiles & Apparel 2.8%
- --------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
Performance Summary
As of May 1, 1995, your Fund now offers two classes of shares, designated as
"Class I" and "Class II." Original shares, now designated as Class II, have
changed their pricing structure, from the previous 5% maximum contingent
deferred sales charge (CDSC), to a 1% initial sales charge, annual 12b-1 Plan
fees, and, with certain exceptions, a 1% additional CDSC on shares redeemed
within 18 months of purchase. Class I shares have a different pricing structure,
with a higher initial sales charge than Class II shares; however, they have
lower annual 12b-1 Plan fees and no CDSC. The different expenses borne by each
class of shares will result in different net asset values, dividends, and
ultimately, different total performance. Class I share total returns are not
shown below, as these shares have not been available a sufficient period of
time. Please see the prospectus for more details regarding Class I and Class II
shares.
The Templeton American Trust Class II shares reported a total return of 12.55%
for the six-month period ended June 30, 1995. Total return measures the change
in value of an investment, assuming reinvestment of dividends and capital gains
distributions, and does not include the maximum initial or contingent deferred
sales charges.
We always maintain a long-term perspective when managing the Fund, and we
encourage shareholders to view their investments in a similar manner. As you can
see from the chart below, the Fund's Class II shares delivered a cumulative
total return of more than 62% since inception on February 27, 1991.
On March 13, 1995, Class II shareholders received distributions of 0.5 cents
($0.005) per share in income dividends and 2.0 cents ($0.02) per share in long-
term capital gains. Class I shares did not pay distributions during the two
months from inception on May 1, 1995 through the end of the reporting period.
However, shareholders are expected to receive distributions on the next regular
distribution date.
The Fund's Class II share price, as measured by net asset value, increased from
$12.49 on December 31, 1994 to $14.03 on June 30, 1995. The Fund's Class I share
price, as measured by net asset value, increased from $13.37 at inception on May
1, 1995 to $14.04 on June 30, 1995. Of course, past performance is not
indicative of future results, and distributions will vary depending on income
earned by the Fund, as well as any profits realized from the sale of securities
in the portfolio.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Templeton American Trust
Periods ended June 30, 1995
Class II shares
Since
Inception
One-Year Three-Year (2/27/91)
<S> <C> <C> <C>
Average Annual Total Return/1/
12.29% 11.37% 11.55%
Cumulative Total Return/2/
14.57% 39.53% 62.25%
</TABLE>
1. Average annual total return represents the average annual change in value of
an investment. For Class II shares, they include the deduction of the 1.00%
initial sales charge and the maximum 1.00% contingent deferred sales charge
assuming shares were redeemed at the end of the reporting period. See note
below.
2. Cumulative total returns show the change in value of an investment over the
periods indicated. For Class II shares, they do not include the deduction of the
1.00% initial sales charge nor the maximum 1.00% contingent deferred sales
charge. See note below.
Note: Prior to May 1, 1995, Class II shares were offered with no initial sales
charge and a higher contingent deferred sales charge. Thus, actual total return
would have been somewhat different than noted above. All total return figures
assume reinvestment of dividends and capital gains. Past expense reductions by
the Fund's manager increased the Fund's total returns.
Investment return and principal value will fluctuate with market conditions,
currencies and the economic and political climates of the countries where
investments are made. Thus, your shares, when redeemed, may be worth more or
less than their original cost. Past performance is not predictive of future
results.
5
<PAGE>
Templeton American Trust, Inc.
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS I
--------------
FOR THE PERIOD
MAY 1, 1995+
THROUGH
JUNE 30, 1995
(UNAUDITED)
--------------
<S> <C>
Net asset value, beginning of period $13.37
------
Income from investment operations:
Net investment income .01
Net realized and unrealized gain .66
------
Total from investment operations .67
------
Net asset value, end of period $14.04
======
TOTAL RETURN* 5.01%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 781
Ratio of expenses to average net assets 1.77%**
Ratio of net investment income to average net assets 2.12%**
Portfolio turnover rate 2.66%
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED IN PERIODS OF
LESS THAN ONE YEAR.
**ANNUALIZED.
+COMMENCEMENT OF OFFERING OF SALES.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Templeton American Trust, Inc.
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS II
----------------------------------------------------------
SIX MONTHS FEBRUARY 7, 1991
ENDED YEAR ENDED DECEMBER 31 (COMMENCEMENT OF
JUNE 30, 1995 ------------------------- OPERATIONS) TO
(UNAUDITED) 1994 1993 1992 DECEMBER 31, 1991
------------- ------- ------- ------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 12.49 $ 13.39 $ 11.77 $ 11.20 $ 10.00
------- ------- ------- ------- -------
Income from investment
operations:
Net investment income .08 .04 .04 .10 .08
Net realized and
unrealized gain (loss) 1.49 .17 1.82 .83 1.22
------- ------- ------- ------- -------
Total from investment
operations 1.57 .21 1.86 .93 1.30
------- ------- ------- ------- -------
Distributions:
Dividends from net
investment income (.01) (.05) (.03) (.11) (.08)
Distributions from net
realized gains (.02) (1.06) (.21) (.09) (.02)
Distributions in excess
of realized gains -- -- -- (.16) --
------- ------- ------- ------- -------
Total distributions (.03) (1.11) (.24) (.36) (.10)
------- ------- ------- ------- -------
Change in net asset
value for the period 1.54 (.90) 1.62 .57 1.20
------- ------- ------- ------- -------
Net asset value, end of
period $ 14.03 $ 12.49 $ 13.39 $ 11.77 $ 11.20
======= ======= ======= ======= =======
TOTAL RETURN* 12.55% 1.63% 15.82% 8.33% 13.05%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (000) $44,213 $37,959 $34,418 $27,485 $13,019
Ratio of expenses to
average net assets 2.33%** 2.47% 2.53% 3.17% 3.94%**
Ratio of expenses, net
of reimbursement
to average net assets 2.33%** 2.47% 2.53% 2.25% 2.25%**
Ratio of net investment
income to
average net assets 1.24%** 0.34% 0.31% 1.13% 1.64%**
Portfolio turnover rate 2.66% 31.92% 14.10% 27.91% 9.86%
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED IN PERIODS OF
LESS THAN ONE YEAR.
**ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Templeton American Trust, Inc.
Investment Portfolio, June 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS: 69.4%
- ------------------------------------------------------------------------------
Aerospace & Military Technical Systems: 1.8%
Boeing Co. U.S. 13,000 $ 814,125
- ------------------------------------------------------------------------------
Automobiles: 1.5%
Ford Motor Co. U.S. 23,000 684,250
- ------------------------------------------------------------------------------
Banking: 3.6%
Australia & New Zealand
Banking Group Ltd. Aus. 102,910 365,717
Bancorp Hawaii Inc. U.S. 6,000 180,000
BankAmerica Corp. U.S. 10,000 526,250
Chemical Banking Corp. U.S. 6,000 283,500
NationsBank Corp. U.S. 5,500 294,938
-----------
1,650,405
- ------------------------------------------------------------------------------
Building Materials & Components: 3.1%
*Owens Corning Fiberglas
Corp. U.S. 15,500 571,563
Pioneer International Ltd. Aus. 175,000 435,336
*Uralita SA Sp. 31,250 376,677
-----------
1,383,576
- ------------------------------------------------------------------------------
Business & Public Services: 1.1%
Esselte AB, B Swe. 22,000 273,692
Wheelbrator Tec. U.S. 14,600 224,475
-----------
498,167
- ------------------------------------------------------------------------------
Chemicals: 1.5%
Great Lakes Chemical Corp. U.S. 11,000 662,750
- ------------------------------------------------------------------------------
Construction & Housing: 1.5%
*National Gypsum Co. U.S. 13,000 679,250
- ------------------------------------------------------------------------------
Data Processing & Reproduction: 1.4%
*Quantum Corp. U.S. 28,000 640,500
- ------------------------------------------------------------------------------
Electrical & Electronics: 2.5%
BBC Brown Boveri AG, br. Swtz. 525 543,465
Motorola Inc. U.S. 9,000 604,125
-----------
1,147,590
- ------------------------------------------------------------------------------
Electronic Components & Instruments: 2.1%
Intel Corp. U.S. 15,000 949,687
- ------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
Templeton American Trust, Inc.
Investment Portfolio, June 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS (CONT.)
- ------------------------------------------------------------------------------
Energy Sources: 9.4%
Amerada Hess Corp. U.S. 4,000 $ 195,500
Norsk Hydro AS, ADR Nor. 8,800 367,400
Plains Petroleum Co. U.S. 25,000 740,625
Saga Petroleum AS, B Nor. 20,000 264,525
Societe Nationale Elf
Aquitane Fr. 4,000 295,594
Tosco Corp. U.S. 13,500 430,313
Total SA, B Fr. 7,000 421,335
USX-Marathon Group Inc. U.S. 33,000 651,750
Valero Energy Corp. U.S. 27,000 546,750
YPF Sociedad Anonima, ADR Arg. 18,000 339,750
-----------
4,253,542
- ------------------------------------------------------------------------------
Financial Services: 2.0%
Dean Witter Discover & Co. U.S. 3,122 146,734
Federal National Mortgage
Assn. U.S. 8,000 755,000
-----------
901,734
- ------------------------------------------------------------------------------
Forest Products & Paper: 6.1%
Georgia-Pacific Corp. U.S. 13,000 1,127,750
International Paper Co. U.S. 4,900 420,175
James River Corp. U.S. 17,100 472,388
Westvaco Corp. U.S. 16,000 708,000
-----------
2,728,313
- ------------------------------------------------------------------------------
Health & Personal Care: 2.2%
Astra AB, A Swe. 15,000 462,912
Windmere Corp. U.S. 62,000 511,500
-----------
974,412
- ------------------------------------------------------------------------------
Industrial Components: 2.9%
BW/IP Inc. U.S. 30,000 555,000
Goodyear Tire & Rubber Co. U.S. 18,000 742,500
-----------
1,297,500
- ------------------------------------------------------------------------------
Insurance: 6.1%
Aetna Life & Casualty Co. U.S. 8,500 534,437
American International
Group Inc. U.S. 6,500 741,000
Kemper Corp. U.S. 13,000 606,125
Presidential Life Corp. U.S. 47,100 388,575
Progressive Corp. Ohio U.S. 2,700 103,613
</TABLE>
9
<PAGE>
Templeton American Trust, Inc.
Investment Portfolio, June 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Insurance (cont.)
Providian Corp. U.S. 3,000 $ 108,750
Travellers Inc. U.S. 6,433 281,444
-----------
2,763,944
- -------------------------------------------------------------------------------
Merchandising: 4.8%
American Stores Co. U.S. 24,444 687,487
Dayton-Hudson Corp. U.S. 6,000 430,500
K Mart Corp. U.S. 25,000 365,625
Limited Inc. U.S. 23,000 506,000
Strawbridge & Clothier, A U.S. 8,487 169,740
-----------
2,159,352
- -------------------------------------------------------------------------------
Metals & Mining: 1.8%
Oregon Steel Mills Inc. U.S. 14,000 239,750
Reynolds Metals Co. U.S. 11,000 569,250
-----------
809,000
- -------------------------------------------------------------------------------
Multi-Industry: 1.3%
Dairy Farm International
Holdings Ltd. H.K. 100,000 86,000
Hutchison Whampoa Ltd. H.K. 100,000 483,341
-----------
569,341
- -------------------------------------------------------------------------------
Telecommunications: 0.3%
Alcatel Alsthom SA Fr. 1,600 144,062
- -------------------------------------------------------------------------------
Textiles & Apparel: 2.8%
*Fruit of the Loom Inc., A U.S. 23,000 485,875
Shaw Industries Inc. U.S. 45,000 765,000
-----------
1,250,875
- -------------------------------------------------------------------------------
Transportation: 5.3%
American President Cos.
Ltd. U.S. 27,000 641,250
*AMR Corp. U.S. 8,000 597,000
Brambles Industries Ltd. Aus. 40,000 379,257
OMI Corp. U.S. 40,000 265,000
Stolt Nielsen SA U.S. 17,000 488,750
-----------
2,371,257
- -------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
Templeton American Trust, Inc.
Investment Portfolio, June 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -----------------------------------------------------------------------------
Utilities Electrical & Gas: 3.7%
Iberdrola SA Sp. 50,000 $ 376,470
Iowa Illinois Gas &
Electric U.S. 27,500 601,562
Pinnacle West Capital
Corp. U.S. 27,500 673,750
-----------
1,651,782
- -----------------------------------------------------------------------------
Wholesale & International Trade: 0.6%
Brierley Investments
Ltd. N.Z. 370,000 279,521
-----------
TOTAL COMMON STOCKS (cost $23,891,103) 31,264,935
- -----------------------------------------------------------------------------
PREFERRED STOCK: 0.1% (cost $7,763)
- -----------------------------------------------------------------------------
Telebras-
Telecomunicacoes
Brasileiras SA, ADR Braz. 136 4,471
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY**
- -----------------------------------------------------------------------------
<C> <S> <C> <C> <C>
BOND: 0.1% (cost $21,414)
- -----------------------------------------------------------------------------
Brierley Investments
Ltd., 9.00%, conv.,
6/30/98 N.Z. 46,250 31,792
- -----------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 30.7% (cost
$13,834,205)
- -----------------------------------------------------------------------------
U. S. Treasury Bills,
5.27% to 5.63% with
maturities to
8/24/95 U.S. 13,900,000 13,842,946
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS: 100.3% (cost
$37,754,485) 45,144,144
OTHER ASSETS, LESS LIABILITIES:
(0.3)% (150,640)
-----------
TOTAL NET ASSETS: 100.0% $44,993,504
===========
</TABLE>
*NON INCOME PRODUCING.
**PRINCIPAL AMOUNT IN CURRENCY OF COUNTRY INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Templeton American Trust, Inc.
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995 (unaudited)
<TABLE>
<S> <C>
Assets:
Investment in securities, at value (identified cost $37,754,485 ) $45,144,144
Cash 5,260
Receivables:
Capital shares sold 71,388
Dividends and interest 98,995
-----------
Total assets 45,319,787
-----------
Liabilities:
Payables:
Investment securities purchased 6,070
Capital shares redeemed 162,974
Accrued expenses 157,239
-----------
Total liabilities 326,283
-----------
Net assets, at value $44,993,504
===========
Net assets consist of:
Undistributed net investment income $ 245,043
Unrealized appreciation on investments 7,389,659
Accumulated net realized gain 349,165
Net capital paid in on shares of capital stock 37,009,637
-----------
Net assets, at value $44,993,504
===========
Class I:
Net asset value per share
($780,516 / 55,607 outstanding shares) $ 14.04
===========
Maximum offering price ($14.04 / 94.25%) $ 14.90
===========
Class II:
Net asset value per share
($44,212,988 / 3,150,514 outstanding shares) $ 14.03
===========
Maximum offering price ($14.03 / 99.0%) $ 14.17
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
for the six months ended June 30, 1995 (unaudited)
<TABLE>
<S> <C> <C>
Investment Income:
(net of $18,184
foreign taxes withheld)
Dividends $ 386,645
Interest 346,523
----------
Total income $ 733,168
Expenses:
Management fees (Note 3) 143,732
Administrative fees (Note 3) 30,812
Distribution fees (Note 3)
Class I 58
Class II 204,807
Transfer agent fees (Note 3) 25,000
Custodian fees 9,300
Reports to shareholders 13,000
Audit fees 3,000
Legal fees 1,500
Registration and filing fees 46,000
Other 1,007
----------
Total expenses 478,216
----------
Net investment income 254,952
Realized and unrealized gain:
Net realized gain on:
Investments 337,733
Foreign currency transactions 2,775
----------
340,508
Net unrealized appreciation on investments 4,418,280
----------
Net realized and unrealized gain 4,758,788
----------
Net increase in net assets resulting from operations $5,013,740
==========
</TABLE>
12
<PAGE>
Templeton American Trust, Inc.
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
------------- -----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 254,952 $ 124,924
Net realized gain from security and foreign
currency transactions 340,508 2,849,815
Net unrealized appreciation (depreciation)
during the period 4,418,280 (2,458,034)
----------- -----------
Net increase in net assets resulting from
operations 5,013,740 516,705
Distributions to shareholders:
From net investment income
Class II (15,176) (137,730)
From net realized capital gain
Class II (60,703) (2,952,688)
Capital share transactions (Note 2)
Class I 777,462 --
Class II 1,318,815 6,114,650
----------- -----------
Net increase in net assets 7,034,138 3,540,937
Net assets:
Beginning of period 37,959,366 34,418,429
----------- -----------
End of period $44,993,504 $37,959,366
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Templeton American Trust, Inc.
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton American Trust, Inc. (the Fund) is an open-end, diversified manage-
ment 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 ex-
change 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 curren-
cies are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customar-
ily enters into foreign exchange contracts to minimize foreign exchange 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 for-
eign currencies, currency gains or losses realized between the trade and set-
tlement 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 rates.
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
federal income taxes.
d. Security Transactions, Investment Income, Distributions and Expenses:
Security transactions are accounted for on a trade date basis. Dividend income
is recorded on the ex-dividend date. Certain dividend income from foreign secu-
rities is 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.
14
<PAGE>
Templeton American Trust, Inc.
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF CAPITAL STOCK
Effective May 1, 1995, the Fund offered two classes of shares: Class I shares
and Class II shares. Shares of each class are identical except for their ini-
tial sales load, a contingent deferred sales charge on Class II shares, distri-
bution fees, and voting rights on matters affecting a single class. All Fund
shares outstanding before May 1, 1995 were designated as Class II shares. At
June 30, 1995, there were, for each class, 100 million shares of capital stock
authorized ($0.01 par value). Transactions in the Fund's shares were as fol-
lows:
<TABLE>
<CAPTION>
CLASS I
-------------------
PERIOD MAY 1, 1995
THROUGH
JUNE 30, 1995
-------------------
SHARES AMOUNT
-------------------
<S> <C> <C>
Shares sold 55,607 $ 777,462
Shares issued in reinvestment
of distributions -- --
Shares redeemed -- --
-------- ----------
Net increase 55,607 $ 777,462
======== ==========
</TABLE>
<TABLE>
<CAPTION>
CLASS II
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
--------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold 352,103 $ 4,530,198 492,348 $ 6,699,834
Shares issued in
reinvestment of
distributions 5,537 70,733 212,560 2,647,339
Shares redeemed (245,913) (3,282,116) (236,481) (3,232,523)
-------- ----------- -------- -----------
Net increase 111,727 $ 1,318,815 468,427 $ 6,114,650
======== =========== ======== ===========
</TABLE>
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton In-
vestment Counsel, Inc. (TICI), Templeton Global Investors, Inc. (TGII), Frank-
lin Templeton Distributors, Inc. (FTD) and Franklin Templeton Investment Serv-
ices, Inc. (FTIS), the Fund's investment manager, administrative manager, prin-
cipal underwriter, and transfer agent, respectively. The Fund pays monthly an
investment management fee to TICI equal, on an annual basis, to 0.70% of the
average daily net assets of the Fund. The fee is subject to reduction in any
year to the extent that expenses (exclusive of certain expenses) of the Fund
exceed 2 1/2% of the first $30 million of net assets, 2% of the next $70 mil-
lion of net assets and 1 1/2% of the remainder. During the six months ended
June 30, 1995, no reduction in fee was required as a result of this limitation.
The Fund pays TGII an administrative fee of 0.15% per annum on the first $200
million of the Fund'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 av-
erage net assets in excess of $1.2 billion. For the six months ended June 30,
1995, FTD did not receive any commissions from the sale of the Fund's shares
and FTIS received fees of $25,000.
Under the distribution plans for Class I and Class II shares, the Fund reim-
burses FTD quarterly for FTD's costs and expenses in connection with any activ-
ity that is primarily intended to result in a sale of Fund shares, subject to a
maximum of 0.35% and 1.00% per annum of the average daily net assets of Class I
and Class II shares, respectively. Under the Class I distribution plan, costs
and expenses exceeding the maximum may be reimbursed in subsequent periods.
Class II shares redeemed within 18 months are subject to a contingent deferred
sales charge. Contingent deferred sales charges of $39,241 were paid to FTD for
the six months ended June 30, 1995.
15
<PAGE>
Templeton American Trust, Inc.
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the six
months ended June 30, 1995 aggregated $771,358 and $2,868,345, 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 June 30, 1995, 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 $7,997,878
Unrealized depreciation (608,219)
----------
Net unrealized appreciation $7,389,659
==========
</TABLE>
16
<PAGE>
Templeton American Trust, Inc.
Special Meeting of Shareholders, May 23, 1995
- --------------------------------------------------------------------------------
A Special Meeting of Shareholders of the Fund was held at the Fund's offices,
700 Central Avenue, St. Petersburg, Florida, on May 4, 1995. Due to the lack of
a quorum, the meeting was adjourned to May 23, 1995. The purpose of the meeting
was to elect twelve directors of the Fund. At the meeting on May 23, 1995, the
following persons were elected by the shareholders to serve as directors of the
Fund: John Wm. Galbraith, Harmon E. Burns, Nicholas F. Brady, Betty P. Krahmer,
Constantine D. Tseretopoulos, Frank J. Crothers, Fred R. Millsaps, S. Joseph
Fortunato, Harris J. Ashton, Andrew H. Hines, Jr., John G. Bennett, Jr., and
Gordon S. Macklin.
The results of the voting at the Special Meeting are as follows:
1. Election of twelve (12) Directors:
<TABLE>
<CAPTION>
% OF % OF % OF
OUTSTANDING SHARES OUTSTANDING
FOR SHARES VOTED AGAINST % ABSTAIN SHARES
--------- ----------- ------ ------- --- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
John Wm. Galbraith* 1,633,915 53.42% 97.62% 0 0 39,796 1.30%
Harmon E. Burns 1,628,488 53.27 97.35 0 0 44,323 1.45
Nicholas F. Brady 1,632,114 53.39 97.57 0 0 40,697 1.33
Betty P. Krahmer 1,630,882 53.35 97.48 0 0 41,929 1.37
Constantine D.
Tseretopoulos 1,631,687 53.37 97.54 0 0 41,124 1.35
Frank J. Crothers 1,632,387 53.40 97.58 0 0 40,424 1.32
Fred R. Millsaps 1,632,095 53.39 97.57 0 0 40,716 1.33
S. Joseph Fortunato 1,630,670 53.34 97.48 0 0 42,141 1.38
Harris J. Ashton 1,631,771 53.38 97.55 0 0 41,040 1.34
Andrew H. Hines, Jr. 1,630,995 53.35 97.50 0 0 41,816 1.37
John G. Bennett, Jr.** 1,632,131 53.39 97.57 0 0 40,680 1.33
Gordon S. Macklin 1,630,639 53.34 97.48 0 0 42,172 1.38
</TABLE>
* AFTER HIS NOMINATION AND THE MAILING OF THE PROXY FOR THE SPECIAL MEETING,
SIR JOHN TEMPLETON STEPPED DOWN AS CHAIRMAN AND DIRECTOR OF THE U.S.
REGISTERED TEMPLETON FUNDS, EFFECTIVE APRIL 16, 1995, AND DECLINED TO STAND
FOR RE-ELECTION. CONSEQUENTLY, PURSUANT TO DISCRETIONARY AUTHORITY GRANTED
IN THE PROXIES, THE PROXY HOLDERS CAST THE PROXIES FOR JOHN WM. GALBRAITH,
FORMER VICE CHAIRMAN OF TEMPLETON, GALBRAITH & HANSBERGER LTD.
** SUBSEQUENT TO THE SPECIAL MEETING, MR. JOHN G. BENNETT, JR., RESIGNED FROM
ALL OF THE TEMPLETON FUNDS, EFFECTIVE MAY 19, 1995.
17
<PAGE>
Notes
-----
<PAGE>
The Franklin Templeton Group
- --------------------------------------------------------------------------------
To receive a free brochure and prospectus, which contain more complete informa-
tion, including charges and expenses on each of the funds listed below, call
Franklin Fund Information, toll free, at 1-800-DIAL-BEN (1-800-342-5236) or
Templeton Fund Information at 1-800-292-9293. Please read the prospectus care-
fully before you invest or send money.
TEMPLETON
FAMILY OF FUNDS
Franklin
Templeton Japan
Fund
Templeton
American Trust
Templeton
Americas
Government
Securities Fund
Templeton
Developing
Markets Trust
Templeton
Foreign Fund
Templeton
Global
Infrastructure
Fund
Templeton
Global
Opportunities
Trust
Templeton
Growth Fund
Templeton
Growth and
Income Fund
Templeton
Income Fund
Templeton Money
Fund
Templeton Real
Estate
Securities Fund
Templeton
Smaller
Companies
Growth Fund
Templeton World
Fund
FRANKLIN GROUP OF FUNDS(R)
FRANKLIN
GLOBAL/
INTERNATIONAL
FUNDS
Franklin Global
Health Care
Fund
Franklin Global
Government
Income Fund
Franklin Global
Utilities Fund
Franklin
International
Equity Fund
Franklin
Pacific Growth
Fund
FUNDS SEEKING CAPITAL GROWTH
Franklin
California
Growth Fund
Franklin
DynaTech Fund
Franklin Equity
Fund
Franklin Gold
Fund
Franklin Growth
Fund
Franklin Rising
Dividends Fund
Franklin Small
Cap Growth Fund
FUNDS SEEKING GROWTH AND
INCOME
Franklin
Balance Sheet
Investment Fund
Franklin
Convertible
Securities Fund
Franklin Income
Fund
Franklin Equity
Income Fund
Franklin
Utilities Fund
FUNDS SEEKING HIGH CURRENT
INCOME
Franklin's AGE
High Income
Fund
Franklin
Investment
Grade Income
Fund
Franklin
Premier Return
Fund
Franklin U.S.
Government
Securities Fund
FUNDS SEEKING TAX-FREE
INCOME
Franklin
Federal Tax-
Free Income
Fund
Franklin High
Yield Tax-Free
Income Fund
Franklin
California High
Yield Municipal
Fund
Franklin
Alabama Tax-
Free Income
Fund
Franklin
Arizona Tax-
Free Income
Fund
Franklin
California Tax-
Free Income
Fund
Franklin
Colorado Tax-
Free Income
Fund
Franklin
Connecticut
Tax-Free Income
Fund
Franklin
Florida Tax-
Free Income
Fund
Franklin
Georgia Tax-
Free Income
Fund
Franklin Hawaii
Municipal Bond
Fund
Franklin
Indiana Tax-
Free Income
Fund
Franklin
Kentucky Tax-
Free Income
Fund
Franklin
Louisiana
Tax-Free
Income Fund
Franklin
Maryland Tax-
Free Income
Fund
Franklin
Missouri Tax-
Free Income
Fund
Franklin New
Jersey Tax-
Free Income
Fund
Franklin New
York Tax-Free
Income Fund
Franklin
North
Carolina Tax-
Free Income
Fund
Franklin
Oregon Tax-
Free Income
Fund
Franklin
Pennsylvania
Tax-Free
Income Fund
Franklin
Puerto Rico
Tax-Free
Income Fund
Franklin
Texas Tax-
Free Income
Fund
Franklin
Virginia Tax-
Free Income
Fund
Franklin
Washington
Municipal
Bond Fund
FUNDS SEEKING TAX-FREE
INCOME THROUGH INSURED
PORTFOLIOS
Franklin
Insured Tax-
Free Income
Fund
Franklin
Arizona
Insured Tax-
Free Income
Fund
Franklin
California
Insured Tax-
Free Income
Fund
Franklin
Florida
Insured Tax-
Free Income
Fund
Franklin
Massachusetts
Insured Tax-
Free Income
Fund
Franklin
Michigan
Insured Tax-
Free Income
Fund
Franklin
Minnesota
Insured Tax-
Free Income
Fund
Franklin New
York Insured
Tax-Free
Income Fund
Franklin Ohio
Insured Tax-
Free Income
Fund
FUNDS SEEKING HIGH CURRENT
INCOME AND STABILITY OF
PRINCIPAL
Franklin
Adjustable
Rate
Securities
Fund
Franklin
Adjustable
U.S.
Government
Securities
Fund
Franklin
Short-
Intermediate
U.S.
Government
Securities
Fund
FUND SEEKING HIGH AFTER-TAX
INCOME FOR CORPORATIONS
Franklin
Corporate
Qualified
Dividend Fund
MONEY MARKET FUNDS SEEKING
SAFETY OF PRINCIPAL AND
INCOME
Franklin
Money Fund
Franklin
Federal Money
Fund
Franklin Tax-
Exempt Money
Fund
Franklin
California
Tax-Exempt
Money Fund
Franklin New
York Tax-
Exempt Money
Fund
IFT Franklin
U.S. Treasury
Money Market
Portfolio
FUNDS FOR
NON-U.S. INVESTORS
FRANKLIN PARTNERS FUNDS(R)
Franklin Tax-
Advantaged
High Yield
Securities
Fund
Franklin Tax-
Advantaged
International
Bond Fund
Franklin Tax-
Advantaged
U.S.
Government
Securities
Fund
To ensure the highest quality of service, telephone calls to or from our serv-
ice departments may be monitored, recorded and accessed. These calls can be de-
termined by the presence of a regular beeping tone.
<PAGE>
- -------------------------------------------------------------------------------
TEMPLETON AMERICAN TRUST, INC.
PRINCIPAL UNDERWRITER:
Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Account Services
1-800-354-9191
Sales Information
1-800-292-9293
This report must be preceded or accompanied by the prospectus of the Templeton
American Trust, Inc., which contains more complete information including
charges and expenses. 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.
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.
- -------------------------------------------------------------------------------
TL100 S95 6/95
[RECYCLING LOGO
APPEARS HERE]
TEMPLETON
AMERICAN
TRUST, INC.
Semi-Annual Report
June 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
