<PAGE>
Templeton American
Trust
[PHOTO OF GARY P. MOTYL APPEARS HERE]
Gary P. Motyl
President
Templeton
American Trust
- --------------------
Your Fund's
Objective:
The Templeton American Trust seeks long-term total return through a flexible
policy of investing primarily in stocks and debt obligations of U.S. companies.
The Fund may, however, invest up to 35% of its assets in securities in any
foreign country, developed or underdeveloped.
August 15, 1996
Dear Shareholder:
We are pleased to bring you this semi-annual report of the Templeton American
Trust for the six months ended June 30, 1996.
During the first half of this reporting period, moderate economic growth,
subdued inflation, and record cash inflows into mutual funds drove U.S. equity
markets to all-time highs. However, slowing corporate profit growth and rising
interest rates caused some weakness in the financial markets during the second
half. Within this environment, the Fund's Class II shares produced a six-month
total return of 8.21%, as discussed in the Performance Summary on page 6,
slightly underperforming the unmanaged Standard & Poor's 500 Stock Index(R),
which posted a 10.08% return for the same period.* This was primarily due to
the portfolio's relatively high cash position. As you can see in the chart on
page 2, on June 30, 1996, 34.9% of the Fund's total net assets were in short-
term obligations and other net assets.
*Source: Standard & Poor's Corporation. The index includes reinvested dividends.
One cannot invest directly in an index.
1
<PAGE>
TEMPLETON AMERICAN TRUST
Geographic Distribution on 6/30/96
Based on Total Net Assets
United States Stocks 50.4%
European Stocks 8.0%
Australian & New Zealand Stocks 4.2%
[PIE CHART APPEARS HERE]
Asian Stocks 1.6%
Latin American Stocks 0.9%
Short-Term Obligations &
Other Net Assets 34.9%
In our opinion, holding a large cash position throughout the period was prudent,
given the high price/earnings ratios and low dividend yields of the U.S. equity
markets. Although we did not expect these markets to plummet as they did in
October 1987, we felt that the stock valuations in the consumer goods and
technology sectors were especially excessive. The strong activity in the initial
public offering market was also a concern because most share prices discounted
high sales and earnings growth rates well into the future.
Because we were unable to find stocks selling at prices below our estimate of
their true value, we did not purchase any securities during the reporting
period. The stocks we sold were mainly from the energy sector, which performed
well due to increasing crude oil and refined petroleum product prices earlier in
the year. Believing that these rising commodity prices resulted from temporary
market conditions, we realized profits by eliminating our positions in Amerada
Hess Corp., Sun Co., Inc., Tosco Corp., USX-Marathon Group, Inc., and Valero
Energy Corp. Other holdings in which we recognized gains included AMR Corp.,
the parent company of American Airlines, Inc.; Owens Corning Fiberglass Corp.,
the large building products manufacturer; and Westvaco Corp., a forest products
firm.
Although the Fund focuses on U.S. companies, we exercised our option to invest
in foreign securities. During the
2
<PAGE>
- ------------------------------------------------------------------
TEMPLETON AMERICAN TRUST
Top 10 Holdings on 6/30/96
Based on Total Net Assets
% of Total
Company, Industry, Country Net Assets
- ------------------------------------------------------------------
Boeing Co., Aerospace & Military
Technology, United States 2.5%
- ------------------------------------------------------------------
Federal National Mortgage Association
Financial Services, United States 2.4%
- ------------------------------------------------------------------
American Stores Co.
Merchandising, United States 2.3%
- ------------------------------------------------------------------
Barrett Resources Corp.
Energy Sources, United States 2.2%
- ------------------------------------------------------------------
American International Group, Inc.
Insurance, United States 2.2%
- ------------------------------------------------------------------
Georgia-Pacific Corp.
Forest Products & Paper, United States 2.1%
- ------------------------------------------------------------------
Windmere-Durable Holdings, Inc.
Health & Personal Care, United States 2.1%
- ------------------------------------------------------------------
Intel Corp., Electronic Components &
Instruments, United States 2.0%
- ------------------------------------------------------------------
Goodyear Tire & Rubber Co.
Industrial Components, United States 1.9%
- ------------------------------------------------------------------
Pinnacle West Capital Corp.
Utilities - Electrical & Gas, United States 1.9%
- ------------------------------------------------------------------
For a complete list of portfolio holdings, please see page 9 of this report.
reporting period, we maintained our overseas investments at 14.7% of total net
assets. Of course, investing in foreign securities involves special risks
related to market, currency, political and other factors. These risks are
discussed in the Fund's prospectus.
- ------------------------------------------------------------------
TEMPLETON AMERICAN TRUST
Top 10 Industries on 6/30/96
Bases on Total Net Assets
% of Total
Industry Net Assets
- ------------------------------------------------------------------
Energy Sources 6.5%
- ------------------------------------------------------------------
Insurance 6.2%
- ------------------------------------------------------------------
Merchandising 5.4%
- ------------------------------------------------------------------
Banking 4.8%
- ------------------------------------------------------------------
Utilities - Electrical & Gas 4.6%
- ------------------------------------------------------------------
Forest Products & Paper 3.9%
- ------------------------------------------------------------------
Transportation 3.7%
- ------------------------------------------------------------------
Health & Personal Care 3.5%
- ------------------------------------------------------------------
Industrial Components 3.2%
- ------------------------------------------------------------------
Financial Services 2.8%
- ------------------------------------------------------------------
Looking forward, the potential outlook for U.S. equities appears positive due to
heavy cash inflows into mutual funds and an expanding U.S. economy with few
signs of impending inflation. However, rising interest rates, lackluster global
economic growth, higher raw material and labor costs, and a stronger U.S. dollar
could lead to disappointing corporate earnings over the next few quarters. Of
course, we have always maintained a long-term investment perspective and believe
that, by diligently pursuing our time-tested methods of identifying bargain-
3
<PAGE>
priced stocks, the long-term performance of the Fund should remain favorable.
This discussion reflects the strategies we employed for the Fund during the six
months under review, and includes our opinions as of the close of the period.
Since economic and market conditions are constantly changing, our strategies,
and our evaluations, conclusions and decisions regarding portfolio holdings, may
change in light of new circumstances as they arise. Although past performance of
a specific investment or sector cannot guarantee future performance, such
information can be useful in analyzing securities we purchase or sell for the
Fund.
We thank you for your support and look forward to serving your investment needs
in the years to come.
Sincerely,
/s/ Gary P. Motyl
Gary P. Motyl, CFA
President
Templeton American Trust, Inc.
4
<PAGE>
PERFORMANCE SUMMARY
CLASS I
The Templeton American Trust Class I shares reported a total return of 8.71% for
the six-month period ended June 30, 1996. Total return shows the change in
value of an investment and does not include the initial sales charge.
We always maintain a long-term perspective when managing the Fund and encourage
shareholders to view their investments in a similar manner.
The price of the Fund's Class I shares, as measured by net asset value,
increased $1.24 per share, from $14.23 on December 31, 1995, to $15.47 on
June 30, 1996. Of course, past performance is not predictive of future results.
<TABLE>
<CAPTION>
TEMPLETON AMERICAN TRUST
Class I
Periods ended June 30, 1996
Since
Inception
One-Year (5/1/95)
<S> <C> <C>
Average annual
Total Return/1/ 7.27% 10.68%
Cumulative
Total Return/2/ 13.81% 19.43%
Value of $10,000
Investment/3/ $10,727 $11,256
</TABLE>
1. Average annual total returns show the average annual change in value of an
investment over the periods indicated and include the maximum 5.75% initial
sales charge.
2. Cumulative total returns show the change in value of an investment over the
periods indicated and do not include the sales charge.
3. These figures represent the value of a hypothetical $10,000 investment in
the Fund over the specified periods and include the maximum 5.75% initial sales
charge.
All calculations assume reinvestment of dividends and capital gains
distributions. 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>
PERFORMANCE SUMMARY
CLASS II
The Templeton American Trust Class II shares reported a total return of 8.21%
for the six-month period ended June 30, 1996. Total return measures the change
in value of an investment and includes no sales charges.
We have always maintained a long-term perspective when managing the Fund and
encourage shareholders to view their investments in a similar manner. As you
can see from the table to the right, the Fund's Class II shares delivered a
cumulative total return of more than 83% since inception on February 27, 1991.
The price of the Fund's Class II shares, as measured by net asset value,
increased $1.17 per share, from $14.25 on December 31, 1995, to $15.42 on June
30, 1996. Of course, past performance is not predictive of future results.
<TABLE>
<CAPTION>
TEMPLETON AMERICAN TRUST
CLASS II
Periods ended June 30, 1996
Since
Inception
One-Year Five-Year (2/27/91)
<S> <C> <C> <C>
Average Annual
Total Return/1/ 10.90% 11.61% 11.82%
Cumulative
Total Return/2/ 13.02% 74.97% 83.37%
Value of $10,000
Investment/3/ $11,090 $17,315 $18,156
</TABLE>
1. Average annual total returns show the average annual change in value of an
investment over the periods indicated. They include the deduction of the 1.00%
initial sales charge and the 1.00% contingent deferred sales charge (CDSC),
applicable to shares redeemed within the first 18 months of investment. See
Note below.
2. Cumulative total returns show the change in value of an investment over the
periods indicated. These calculations do not include the deduction of the 1.00%
initial sales charge nor the 1.00% CDSC. See Note below.
3. These figures represent the value of a hypothetical $10,000 investment in
the Fund over the specified periods and include the deduction of the 1.00%
initial sales charge. For the one-year period, the figure also includes the
deduction of the 1.00% CDSC.
Note: Prior to May 1, 1995, Class II shares were offered with no initial sales
charge and a higher but declining contingent deferred sales charge. Thus,
actual total returns would have been somewhat different than noted above. Past
expense reductions by the Fund's manager increased the Fund's total returns.
All calculations assume reinvestment of dividends and capital gains
distributions. 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.
6
<PAGE>
Templeton American Trust, Inc.
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE--CLASS I
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
SIX MONTHS FOR THE PERIOD
ENDED MAY 1, 1995+
JUNE 30, 1996 THROUGH
(UNAUDITED) DECEMBER 31, 1995
------------- -----------------
<S> <C> <C>
Net asset value, beginning of period $14.23 $13.37
------ ------
Income from investment operations:
Net investment income .12 .11
Net realized and unrealized gain 1.12 1.21
------ ------
Total from investment operations 1.24 1.32
------ ------
Distributions:
Dividends from net investment income -- (.20)
Distributions from net realized gains -- (.26)
------ ------
Total distributions -- (.46)
------ ------
Change in net asset value 1.24 .86
------ ------
Net asset value, end of period $15.47 $14.23
====== ======
TOTAL RETURN* 8.71% 17.68%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $1,512 $ 881
Ratio of expenses to average net assets 1.46%** 1.81%**
Ratio of net investment income to average net
assets 1.80%** 1.31%**
Portfolio turnover rate -- 4.44%
Average commission rate paid (per share) $.0033
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR PERIODS
OF LESS THAN ONE YEAR.
**ANNUALIZED.
+COMMENCEMENT OF OFFERING OF SALES.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Templeton American Trust, Inc.
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE--CLASS II
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
SIX MONTHS FEBRUARY 7, 1991
ENDED YEAR ENDED DECEMBER 31 (COMMENCEMENT
JUNE 30, 1996 ---------------------------------- OF OPERATIONS) TO
(UNAUDITED) 1995 1994 1993 1992 DECEMBER 31, 1991
------------- ------- ------- ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period $ 14.25 $ 12.49 $ 13.39 $ 11.77 $ 11.20 $ 10.00
------- ------- ------- ------- ------- -------
Income from investment
operations:
Net investment income .08 .14 .04 .04 .10 .08
Net realized and
unrealized gain 1.09 2.04 .17 1.82 .83 1.22
------- ------- ------- ------- ------- -------
Total from investment
operations 1.17 2.18 .21 1.86 .93 1.30
------- ------- ------- ------- ------- -------
Distributions:
Dividends from net
investment income -- (.14) (.05) (.03) (.11) (.08)
Distributions from net
realized gains -- (.28) (1.06) (.21) (.09) (.02)
Distributions in excess
of realized gains -- -- -- -- (.16) --
------- ------- ------- ------- ------- -------
Total distributions -- (.42) (1.11) (.24) (.36) (.10)
------- ------- ------- ------- ------- -------
Change in net asset
value 1.17 1.76 (.90) 1.62 .57 1.20
------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 15.42 $ 14.25 $ 12.49 $ 13.39 $ 11.77 $ 11.20
======= ======= ======= ======= ======= =======
TOTAL RETURN* 8.21% 17.55% 1.63% 15.82% 8.33% 13.05%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (000) $43,058 $44,183 $37,959 $34,418 $27,485 $13,019
Ratio of expenses to av-
erage net assets 2.17%** 2.40% 2.47% 2.53% 3.17% 3.94%**
Ratio of expenses, net
of reimbursement to av-
erage net assets 2.17%** 2.40% 2.47% 2.53% 2.25% 2.25%
Ratio of net investment
income to average net
assets 1.06% .95% .34% .31% 1.13% 1.64%**
Portfolio turnover rate -- 4.44% 31.92% 14.10% 27.91% 9.86%
Average commission rate
paid (per share) $ .0033
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS OR THE CONTINGENT DEFERRED
SALES CHARGE. NOT ANNUALIZED FOR PERIODS OF LESS THAN ONE YEAR.
**ANNUALIZED
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Templeton American Trust, Inc.
Investment Portfolio, June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -----------------------------------------------------------------------------
COMMON STOCKS: 64.9%
- -----------------------------------------------------------------------------
Aerospace & Military Technical Systems:
2.5%
Boeing Co. U.S. 13,000 $ 1,132,625
- -----------------------------------------------------------------------------
Automobiles: 1.6%
Ford Motor Co. U.S. 23,000 744,625
- -----------------------------------------------------------------------------
Banking: 4.8%
Australia & New Zealand Banking
Group Ltd. Aus. 102,910 486,909
BankAmerica Corp. U.S. 10,000 757,500
Chase Manhattan Corp., new U.S. 6,000 423,750
NationsBank Corp. U.S. 5,500 454,438
-----------
2,122,597
- -----------------------------------------------------------------------------
Building Materials & Components: 1.8%
Pioneer International Ltd. Aus. 175,000 508,901
Uralita SA Sp. 31,250 292,957
-----------
801,858
- -----------------------------------------------------------------------------
Business & Public Services: 1.8%
Esselte AB, B Swe. 22,000 450,234
Wheelabrator Technologies Inc. U.S. 22,000 335,500
-----------
785,734
- -----------------------------------------------------------------------------
Chemicals: 1.5%
Great Lakes Chemical Corp. U.S. 11,000 684,750
- -----------------------------------------------------------------------------
Data Processing & Reproduction: 0.9%
*Quantum Corp. U.S. 28,000 409,500
- -----------------------------------------------------------------------------
Electrical & Electronics: 1.6%
Alcatel Alsthom SA Fr. 1,600 139,651
Motorola Inc. U.S. 9,000 565,875
-----------
705,526
- -----------------------------------------------------------------------------
Electronic Components & Instruments: 2.0%
Intel Corp. U.S. 12,000 881,250
- -----------------------------------------------------------------------------
Energy Sources: 6.5%
*Barrett Resources Corp. U.S. 32,500 966,875
Norsk Hydro AS, ADR Nor. 8,800 430,100
Saga Petroleum AS, B Nor. 20,000 271,184
Societe Elf Aquitane SA Fr. 4,000 294,387
Total SA, B Fr. 7,000 519,532
YPF Sociedad Anonima, ADR Arg. 18,000 405,000
-----------
2,887,078
- -----------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Templeton American Trust, Inc.
Investment Portfolio, June 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Financial Services: 2.8%
Dean Witter Discover & Co. U.S. 3,122 $ 178,734
Federal National Mortgage Assn. U.S. 32,000 1,072,000
-----------
1,250,734
- -------------------------------------------------------------------------------
Forest Products & Paper: 3.9%
Georgia-Pacific Corp. U.S. 13,000 923,000
International Paper Co. U.S. 9,800 361,375
James River Corp. U.S. 17,100 451,013
-----------
1,735,388
- -------------------------------------------------------------------------------
Health & Personal Care: 3.5%
Astra AB, A Swe. 15,000 663,797
Windmere-Durable Holdings Inc. U.S. 70,000 918,750
-----------
1,582,547
- -------------------------------------------------------------------------------
Industrial Components: 3.2%
BW/IP Inc. U.S. 30,000 570,000
Goodyear Tire & Rubber Co. U.S. 18,000 868,500
-----------
1,438,500
- -------------------------------------------------------------------------------
Insurance: 6.2%
Aetna Life & Casualty Co. U.S. 8,500 607,750
American International Group Inc. U.S. 9,750 961,594
Presidential Life Corp. U.S. 47,100 488,663
Progressive Corp. Ohio U.S. 2,700 124,875
Providian Corp. U.S. 3,000 128,625
Travelers Inc. U.S. 9,650 440,258
-----------
2,751,765
- -------------------------------------------------------------------------------
Merchandising: 5.4%
American Stores Co. U.S. 24,444 1,008,315
Dairy Farm International Holdings
Ltd. H.K. 100,000 84,500
Dayton-Hudson Corp. U.S. 6,000 618,750
K Mart Corp. U.S. 25,000 309,375
Limited Inc. U.S. 12,510 268,965
Strawbridge & Clothier, A U.S. 8,487 137,914
-----------
2,427,819
- -------------------------------------------------------------------------------
Metals & Mining: 1.7%
Oregon Steel Mills Inc. U.S. 14,000 192,500
Reynolds Metals Co. U.S. 11,000 573,375
-----------
765,875
- -------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
Templeton American Trust, Inc.
Investment Portfolio, June 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Multi-Industry: 1.4%
Hutchison Whampoa Ltd. H.K. 100,000 $ 629,138
- -------------------------------------------------------------------------------
Telecommunications: 0.1%
Telecomunicacoes
Brasileiras SA, ADR, 144A U.S. 136 9,469
- -------------------------------------------------------------------------------
Textiles & Apparel: 2.6%
*Fruit of the Loom Inc., A U.S. 23,000 586,500
Shaw Industries Inc. U.S. 45,000 590,625
-----------
1,177,125
- -------------------------------------------------------------------------------
Transportation: 3.7%
APL Ltd. U.S. 27,000 705,375
Brambles Industries Ltd. Aus. 36,005 500,309
*OMI Corp. U.S. 50,000 431,250
-----------
1,636,934
- -------------------------------------------------------------------------------
Utilities--Electrical & Gas: 4.6%
Iberdrola SA Sp. 50,000 513,652
Midamerican Energy U.S. 40,425 697,331
Pinnacle West Capital
Corp. U.S. 27,500 835,312
-----------
2,046,295
- -------------------------------------------------------------------------------
Wholesale & International Trade: 0.8%
Brierley Investments Ltd. N.Z. 370,000 351,292
-----------
TOTAL COMMON STOCKS (cost $19,058,712) 28,958,424
- -------------------------------------------------------------------------------
PREFERRED STOCK: 0.1% (cost $12,099)
- -------------------------------------------------------------------------------
Everen Capital Corp., pfd.
A U.S. 11,100 11,932
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY**
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
BOND: 0.1% (cost $21,419)
- -------------------------------------------------------------------------------
Brierley Investments Ltd.,
9.00%, conv., 6/30/98 N.Z. 46,250 39,201
- -------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 35.0% (cost
$15,548,378)
- -------------------------------------------------------------------------------
U.S. Treasury Bills, 4.83%
to 5.09% with
maturities to 9/5/96 U.S. 15,718,000 15,612,400
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS: 100.1% (cost
$34,640,608) 44,621,957
OTHER ASSETS, LESS LIABILITIES: (0.1)% (52,206)
-----------
TOTAL NET ASSETS: 100.0% $44,569,751
===========
</TABLE>
*NON-INCOME PRODUCING.
**CURRENCY OF COUNTRY INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Templeton American Trust, Inc.
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (unaudited)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (identified cost $34,640,608) $44,621,957
Cash 888
Receivables:
Capital shares sold 1,679
Dividends and interest 78,970
-----------
Total assets 44,703,494
-----------
Liabilities:
Payable for capital shares redeemed 1,831
Accrued expenses 131,912
-----------
Total liabilities 133,743
-----------
Net assets, at value $44,569,751
===========
Net assets consist of:
Undistributed net investment income $ 241,208
Net unrealized appreciation 9,981,349
Accumulated net realized gain 2,100,228
Net capital paid in on shares of
capital stock 32,246,966
-----------
Net assets, at value $44,569,751
===========
Class I
Net asset value per share ($1,511,856 / 97,701
shares outstanding) $ 15.47
===========
Maximum offering price ($15.47 / 94.25%) $ 16.41
===========
Class II
Net asset value per share ($43,057,895 / 2,791,506
shares outstanding) $ 15.42
===========
Maximum offering price ($15.42 / 99.0%) $ 15.58
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
for the six months ended
June 30, 1996 (unaudited)
<TABLE>
<S> <C> <C>
Investment income:
(net of $14,852
foreign taxes withheld)
Dividends $ 364,017
Interest 357,598
----------
Total income $ 721,615
Expenses:
Management fees (Note 3) 33,724
Administrative fees (Note 3) 157,392
Distribution Fees (Note 3)
Class I 1,890
Class II 218,201
Transfer agent fees (Note 3) 29,500
Custodian fees 3,200
Reports to shareholders 3,500
Audit fees 6,000
Legal fees (Note 3) 5,500
Registration and filing fees 21,500
----------
Total expenses 480,407
----------
Net investment income 241,208
Realized and unrealized gain (loss):
Net realized gain on:
Investments 2,103,357
Foreign currency transactions (1,356)
----------
2,102,001
Net unrealized appreciation
on investments 1,261,868
----------
Net realized and
unrealized gain 3,363,869
----------
Net increase in net assets
resulting from operations $3,605,077
==========
</TABLE>
12
<PAGE>
Templeton American Trust, Inc.
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1996
(UNAUDITED) 1995
------------- -----------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 241,208 $ 413,577
Net realized gain on investment and foreign cur-
rency transactions 2,102,001 804,689
Net unrealized appreciation 1,261,868 5,748,102
----------- -----------
Net increase in net assets resulting from opera-
tions 3,605,077 6,966,368
Distributions to shareholders:
From net investment income
Class I -- (11,296)
Class II -- (402,975)
From net realized gain
Class I -- (15,561)
Class II -- (864,834)
Capital share transactions (Note 2)
Class I 515,359 867,236
Class II (4,614,417) 565,428
----------- -----------
Net increase (decrease) in net assets (493,981) 7,104,366
Net assets:
Beginning of period 45,063,732 37,959,366
----------- -----------
End of period $44,569,751 $45,063,732
=========== ===========
</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 Fund seeks long-term total return through a flexible policy of investing
primarily in stocks and debt obligations of U.S. companies. The Fund may, how-
ever, invest up to 35% of its assets in securities in any foreign country, de-
veloped or underdeveloped. The following summarizes the Fund's significant ac-
counting policies.
a. Securities Valuations:
Securities listed or traded on a recognized national or foreign 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 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 Transactions:
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 a foreign exchange contract 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 of its
taxable income to its shareholders. Therefore, no provision has been made for
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 on foreign securi-
ties is recorded as soon as information is available to the Fund. Interest in-
come 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.
e. 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.
14
<PAGE>
Templeton American Trust, Inc.
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF CAPITAL STOCK
The Fund offers two classes of shares: Class I shares and Class II shares.
Shares of each class are identical except for their initial sales load, a con-
tingent deferred sales charge on Class II shares, distribution fees, and voting
rights on matters affecting a single class. At June 30, 1996, there were, for
each class, 100 million shares of capital stock authorized ($0.01 par value).
Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
CLASS I
-------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED MAY 1, 1995 THROUGH
JUNE 30, 1996 DECEMBER 31, 1995
--------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ----------
<S> <C> <C> <C> <C>
Shares sold 62,053 $ 913,432 103,187 $1,462,727
Shares issued on reinvest-
ment of distributions -- -- 1,736 24,258
Shares redeemed (26,222) (398,073) (43,053) (619,749)
-------- ----------- -------- ----------
Net increase 35,831 $ 515,359 61,870 $ 867,236
======== =========== ======== ==========
<CAPTION>
CLASS II
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
--------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ----------
<S> <C> <C> <C> <C>
Shares sold 102,178 $ 1,509,999 484,989 $6,429,431
Shares issued on reinvest-
ment of distributions -- -- 79,384 1,103,844
Shares redeemed (412,147) (6,124,416) (501,685) (6,967,847)
-------- ----------- -------- ----------
Net increase (decrease) (309,969) $(4,614,417) 62,688 $ 565,428
======== =========== ======== ==========
</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 Investor Servic-
es, Inc. (FTIS), the Fund's investment manager, administrative manager, princi-
pal 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 Fund pays TGII
monthly an administrative fee of 0.15% per annum of 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 average net assets
in excess of $1.2 billion. For the six months ended June 30, 1996, FTD received
net commissions of $3,260 from the sale of the Fund's shares and FTIS received
fees of $29,500.
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. At
June 30, 1996, there were no unreimbursed expenses. Class II shares redeemed
within 18 months are subject to a contingent deferred sales charge. Contingent
deferred sales charges of $3,983 were paid to FTD for the six months ended June
30, 1996.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received fees of $5,500 for the six months ended June
30, 1996.
15
<PAGE>
Templeton American Trust, Inc.
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
4. PURCHASES AND SALES OF SECURITIES
There were no purchases of securities and sales of securities (excluding short-
term securities) for the six months ended June 30, 1996 was $6,875,101. 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 identi-
fied cost basis.
At June 30, 1996, 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 $10,483,974
Unrealized depreciation (502,625)
-----------
Net unrealized appreciation $ 9,981,349
===========
</TABLE>
16
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
The Franklin Templeton Group
Literature Request - Call today for a free descriptive brochure and prospectus
on any of the funds listed below. The prospectus contains more complete
information, including fees, charges and expenses, and should be read carefully
before investing or sending money.
<TABLE>
<S> <C> <C> <C>
Templeton Funds Florida* Franklin Funds Seeking Franklin Templeton Global
American Trust Georgia Growth and Income Currency Funds
Americas Government Hawaii** Balance Sheet German Government
Securities Indiana Investment Fund Bond
Developing Markets Trust Kentucky Convertible Securities Fund Global Currency
Foreign Fund Louisiana Equity Income Fund High Income Currency
Global Infrastructure Fund Maryland Global Utilities Fund Hard Currency
Global Opportunities Trust Massachusetts*** Income Fund Franklin Money
Greater European Fund Michigan*** MicroCap Value Market Funds
Growth Fund Minnesota*** Natural Resources Fund Money Fund
Growth and Income Fund Missouri Premier Return Fund Federal Money Fund
Global Bond Fund New Jersey Real Estate Securities Fund Tax-Exempt Money
Latin America Fund New York* Rising Dividends Fund Fund
Pacific Growth North Carolina Strategic Income Fund California Tax-Exempt
Global Real Estate Fund Ohio*** Utilities Fund Money Fund
Global Smaller Oregon Value New York Tax-Exempt
Company Fund Pennsylvania Money Fund
World Fund Tennessee Franklin Funds Seeking IFT U.S. Treasury Money
Texas High Current Income Market Portfolio
Franklin Funds Seeking Virginia AGE High Income Fund
Tax-Free Income Washington** Global Government Franklin Fund for Corporations
Federal Tax-Free Income Fund Corporate Qualified
Income Fund Franklin Funds Investment Grade Dividend Fund
Federal Intermediate-Term Seeking Capital Growth Income Fund
Tax-Free Income Fund California Growth Fund U.S. Government Franklin Tax-Deferred
High Yield DynaTech Fund Securities Fund Annuity
Insured Tax-Free Equity Fund Franklin Valuemark
Income Fund*** Global Health Care Franklin Funds Seeking Franklin Templeton
Puerto Rico Tax-Free Gold Fund High Current Income and Valuemark Income Plus
Income Fund Growth Fund Stability of Principal (an immediate annuity)
International Adjustable Rate
Franklin State-Specific Equity Fund Securities Fund
Funds Seeking Tax-Free Income Japan Fund Adjustable U.S. Government
Alabama Small Cap Growth Fund Securities Fund
Arizona* Short-Intermediate U.S.
Arkansas** Government
California* Securities Fund
Colorado
Connecticut Franklin Funds for
Non-U.S. Investors
Tax-Advantaged High Yield
Securities Fund
Tax-Advantaged International
Bond Fund
Tax-Advantaged U.S.
Government Securities Fund
</TABLE>
Fund Information: 1-800/342-5236
Shareholder Services: 1-800/632-2301
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.
*Two or more fund options available: long-term portfolio, intermediate-term
portfolio, a portfolio of insured municipal securities, and a high yield
portfolio (CA).
**The fund may invest up to 100% of its assets in bonds that pay interest
subject to the federal alternative minimum tax.
***Portfolio of insured municipal securities.
<PAGE>
TEMPLETON
AMERICAN TRUST, INC.
PRINCIPAL UNDERWRITER:
Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Shareholder Services
1-800-632-2301
Fund Information
1-800-342-5236
This report must be preceded or accompanied
by the current 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.
[RECYCLING LOGO APPEARS HERE]
TL100 S96 8/96
TEMPLETON
AMERICAN
TRUST, INC.
Semi-Annual Report
June 30, 1996
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
