<PAGE> 1
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 developing.
February 18, 1997
Dear Shareholder:
We are pleased to bring you the annual report of the Templeton American Trust,
which covers the period ended December 31, 1996.
During the year under review, moderate economic growth, subdued inflation, and
record cash inflows into retirement plans helped drive the U.S. equity market to
record highs. Within this environment, the Fund's Class II shares produced a
one-year total return of 18.91%, as discussed in the Performance Summary on page
7. The Standard & Poor's(R) 500 Stock Index, the Fund's benchmark, posted a
22.90% return for the same period. One of the primary reasons for this
underperformance was the Fund's high cash position. The high price/earnings
ratios and low dividend yields of the U.S. equity markets made it extremely
difficult to identify investment bargains, and as you can see in the chart on
page 2, 22.4% of the Fund's total net assets were in short-term obligations and
other net assets on December 31, 1996.
1
<PAGE> 2
TEMPLETON AMERICAN TRUST
Geographic Distribution on 12/31/96
Based on Total Net Assets
[Pie Chart]
<TABLE>
<S> <C>
United States 62.3%
Europe 8.6%
Australia &
New Zealand 4.0%
Asia 1.7%
Latin America 1.0%
Short-Term Obligations &
Other Net Assets 22.4%
</TABLE>
In the first half of the year, we sold a number of energy shares which performed
well due to increasing prices of crude oil and refined petroleum products.
Believing that these rising 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. We also
recognized gains on sales of our holdings in AMR Corp., the parent company of
American Airlines; Westvaco Corp., a forest products firm; and Owens Corning
Fiberglass Corp.
When the U.S. stock market corrected in July, several stocks fell to more
attractive valuations, and we were able to find stocks we believed to be
bargains in a number of different industries. Share prices of several companies
declined substantially following disappointing earnings, and believing that
these declines were short-term in nature, we established positions in DSC
Communications Corp., AT&T Corp., US West Communication Group, Boise Cascade
Corp. and Bay Networks, Inc. We also added to our positions in Wheelabrator
Technologies Inc., a manufacturer of waste and energy-related equipment; Oregon
Steel Mills Inc., a minimill steel producer; and Dean Witter Discover & Co., a
major financial services firm. Because of their significant appreciation and
high valuations, we eliminated our holdings of International Paper Co. and
reduced the weightings of our positions in Boeing Co. and BankAmerica Corp.
Although the Fund focuses on U.S. companies, we continued to invest in foreign
securities, and at the end of the year, our overseas investments held steady at
15.3% of total net assets. As you know, investing in foreign securities involves
special risks related to
2
<PAGE> 3
market, economic, currency, political, social and other factors. Developing
markets involve similar but heightened risks, in addition to risks associated
with the relatively small size and lesser liquidity of these markets. These
risks are discussed in the Fund's prospectus.
Looking forward, we believe the outlook for U.S. equities appears positive if
the economy continues to grow and inflation remains subdued. However, rising
interest rates, higher raw material and labor costs, and a stronger U.S. dollar
could lead to disappointing corporate earnings. Of course, we have always
maintained a long-term investment perspective and believe that by diligently
pursuing our time-tested methods of identifying bargain-priced stocks, the
long-term performance of the Fund has the potential to remain favorable.
TEMPLETON AMERICAN TRUST
Top 10 Holdings on December 31, 1996
Based on Total Net Assets
<TABLE>
<CAPTION>
Company, % of Total
Industry, Country Net Assets
<S> <C>
Intel Corp.
Electronic Components & Instruments, U.S. 3.4%
Barrett Resources Corp.
Energy Sources, U.S. 3.0%
Federal National Mortgage Assn
Financial Services, U.S. 2.6%
American International Group Inc.
Insurance, U.S. 2.3%
American Stores Co.
Merchandising, U.S. 2.1%
Georgia-Pacific Corp.
Forest Products & Paper, U.S. 2.0%
Goodyear Tire & Rubber Co.
Industrial Components, U.S. 2.0%
AT&T Corp.
Telecommunications, U.S. 2.0%
Windmere-Durable Holdings Inc.
Health & Personal Care, U.S. 1.9%
Pinnacle West Capital Corp.
Utilities - Electrical & Gas, U.S. 1.9%
</TABLE>
FOR A COMPLETE LIST OF PORTFOLIO HOLDINGS, PLEASE SEE PAGE 11 OF THIS REPORT.
TEMPLETON AMERICAN TRUST
Top 10 Industries on December 31, 1996
Based on Total Net Assets
<TABLE>
<CAPTION>
% of Total
Industry Net Assets
<S> <C>
Energy Sources 7.6%
Insurance 5.4%
Merchandising 5.0%
Health & Personal Care 5.0%
Utilities - Electrical & Gas 4.8%
Forest Products & Paper 4.6%
Banking 4.1%
Financial Services 4.1%
Electrical & Electronics 3.8%
Transportation 3.7%
</TABLE>
3
<PAGE> 4
This discussion reflects the strategies we employed for the Fund during the past
fiscal year, and includes our opinions as of the close of the period. Since
economic and market conditions are constantly changing, our strategies,
evaluations, conclusions and decisions regarding portfolio holdings may change
as new circumstances 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/ Peter A. Nori
- --------------------------
Peter A. Nori
Portfolio Manager
Templeton American Trust, Inc.
4
<PAGE> 5
PERFORMANCE SUMMARY
CLASS I
Templeton American Trust - Class I produced a cumulative total return of 19.90%
for the one-year period ended December 31, 1996. Cumulative total return
measures the change in value of an investment, assuming reinvestment of
dividends and capital gains distributions, 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 shares, as measured by net asset value, increased $1.79,
from $14.23 on December 31, 1995 to $16.02 on December 31, 1996. During the
reporting period, shareholders received distributions totaling 26 cents ($0.26)
per share in dividend income, 1.5 cents ($0.015) in short-term capital gains,
and 73 cents ($0.73) in long-term capital gains. Of course, past performance is
not predictive 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.
The index comparison chart on page 6 shows how an investment in Templeton
American Trust - Class I, since inception on May 1, 1995, has kept your
purchasing power ahead of inflation, as measured by the Consumer Price Index
(CPI). Please remember that the Fund's performance differs from that of an index
because, among other things, an index is not managed according to any investment
strategy, includes no sales charges or management expenses, and does not contain
cash (the Fund generally carries a certain percentage of cash at any given
time). Of course, one cannot invest directly in an index. Past performance is
not predictive of future results.
5
<PAGE> 6
TEMPLETON AMERICAN TRUST - CLASS I
Total Return Index Comparison
$10,000 Investment (5/1/95-12/31/96)
[LINE GRAPH]
<TABLE>
<CAPTION>
TEMPLTON AMERICAN
TRUST - CLASS I S&P 500 CONSUMER PRICE INDEX
DATE VALUE TOTAL RETURN VALUE TOTAL RETURN VALUE
---- ----- ------------ ----- ------------ -----
<S> <C> <C> <C> <C> <C> <C>
5/1/95 $ 9,423 $10,000 $10,000
5/31/95 $ 9,704 4.00% $10,400 0.20% $10,020
6/30/95 $ 9,887 2.32% $10,641 0.20% $10,040
7/31/95 $10,190 3.32% $10,995 0.00% $10,040
8/31/95 $10,134 0.25% $11,022 0.26% $10,066
9/30/95 $10,275 4.22% $11,487 0.20% $10,086
10/31/95 $ 9,972 -0.36% $11,446 0.33% $10,120
11/30/95 $10,218 4.39% $11,948 -0.07% $10,112
12/31/95 $10,351 1.93% $12,179 -0.07% $10,105
1/31/96 $10,467 3.40% $12,593 0.59% $10,165
2/29/96 $10,548 0.93% $12,710 0.32% $10,198
3/31/96 $10,780 0.96% $12,832 0.52% $10,251
4/30/96 $11,071 1.47% $13,021 0.39% $10,291
5/31/96 $11,239 2.58% $13,357 0.19% $10,310
6/30/96 $11,253 0.38% $13,407 0.06% $10,316
7/31/96 $10,940 -4.42% $12,815 0.19% $10,336
8/31/96 $11,246 2.11% $13,085 0.19% $10,356
9/30/96 $11,493 5.63% $13,822 0.32% $10,389
10/31/96 $11,755 2.76% $14,203 0.32% $10,422
11/30/96 $12,322 7.56% $15,277 0.19% $10,442
12/31/96 $12,411 -1.98 $14,975 0.00% $10,442
</TABLE>
Templeton American Trust-Class 1(1)
S&P 500 Index(2)
Consumer Price Index(3)
1. INCLUDES ALL SALES CHARGES AND REPRESENTS THE CHANGE IN VALUE OF AN
INVESTMENT OVER THE PERIOD SHOWN. TOTAL RETURN ASSUMES REINVESTMENT OF DIVIDENDS
AND CAPITAL GAINS. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
2. Index is unmanaged and includes reinvested dividends.
3. Source: U.S. Bureau of Labor Statistics.
TEMPLETON AMERICAN TRUST - CLASS I
Periods ended December 31, 1996
<TABLE>
<CAPTION>
Since
Inception
One-Year (5/1/95)
<S> <C> <C>
Cumulative
Total Return(1) 19.90% 31.73%
Average Annual
Total Return(2) 12.99% 13.81%
Value of $10,000
Investment(3) $11,299 $12,412
</TABLE>
1. CUMULATIVE TOTAL RETURN REPRESENTS THE CHANGE IN VALUE OF AN INVESTMENT OVER
THE INDICATED PERIODS AND DOES NOT INCLUDE THE INITIAL SALES CHARGE.
2. AVERAGE ANNUAL TOTAL RETURN REPRESENTS THE AVERAGE ANNUAL CHANGE IN VALUE OF
AN INVESTMENT OVER THE INDICATED PERIODS AND INCLUDES THE MAXIMUM 5.75% INITIAL
SALES CHARGE.
3. THESE FIGURES REPRESENT THE VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN THE
FUND OVER THE INDICATED PERIODS AND INCLUDE THE MAXIMUM 5.75% INITIAL SALES
CHARGE.
ALL TOTAL RETURN CALCULATIONS ASSUME REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS
DISTRIBUTIONS WHEN PAID. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE
WITH MARKET CONDITIONS, CURRENCIES AND THE ECONOMIC, SOCIAL AND POLITICAL
CLIMATES WHERE INVESTMENTS ARE MADE. DEVELOPING MARKETS INVOLVE HEIGHTENED RISKS
RELATED TO THE SAME FACTORS, IN ADDITION TO THOSE ASSOCIATED WITH THE RELATIVELY
SMALL SIZE AND LESSER LIQUIDITY OF THESE MARKETS. THUS, YOU MAY HAVE A GAIN OR
LOSS WHEN YOU SELL YOUR SHARES. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE
RESULTS.
6
<PAGE> 7
PERFORMANCE SUMMARY
CLASS II
Templeton American Trust - Class II produced a cumulative total return of 18.91%
for the one-year period ended December 31, 1996. Cumulative total return
measures the change in value of an investment, assuming reinvestment of
dividends and capital gains distributions, and does not include the sales
charges.
We always maintain 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 on page 8, the Fund delivered a cumulative total return of more than
101% since inception on February 27, 1991.
The price of the Fund's shares, as measured by net asset value, increased $1.79,
from $14.25 on December 31, 1995 to $16.04 on December 31, 1996. During the
reporting period, shareholders received distributions totaling 13.68 cents
($0.1368) per share in dividend income, 1.5 cents ($0.015) in short-term capital
gains, and 73 cents ($0.73) in long-term capital gains. Of course, past
performance is not predictive 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.
The index comparison chart on page 8 shows how an investment in Templeton
American Trust - Class II, over the past five years, has kept your purchasing
power ahead of inflation, as measured by the Consumer Price Index (CPI). Please
remember that the Fund's performance differs from that of an index because,
among other things, an index is not managed according to any investment
strategy, includes no sales charges or management expenses, and does not contain
cash (the Fund generally carries a certain percentage of cash at any given
time). Of course, one cannot invest directly in an index. Past performance is
not predictive of future results.
7
<PAGE> 8
TEMPLETON AMERICAN TRUST - CLASS II
Total Return Index Comparison
$10,000 Investment (2/27/91-12/31/96)
[LINE GRAPH]
<TABLE>
<CAPTION>
TEMPLTON AMERICAN
TRUST - CLASS II S&P 500 CONSUMER PRICE INDEX
DATE VALUE TOTAL RETURN VALUE TOTAL RETURN VALUE
----- ----- ------------ ----- ------------ -----
<S> <C> <C> <C> <C> <C> <C>
2/27/91 $9,901 $10,000 $10,000
2/28/91 $9,901 0.26% $10,026 0.01% $10,001
3/31/91 $10,119 2.42% $10,269 0.15% $10,016
4/30/91 $10,327 0.24% $10,293 0.15% $10,031
5/31/91 $10,673 4.31% $10,737 0.30% $10,061
6/30/91 $10,376 -4.58% $10,245 0.29% $10,090
7/31/91 $10,515 4.66% $10,723 0.15% $10,105
8/31/91 $10,663 2.37% $10,977 0.29% $10,135
9/30/91 $10,584 -1.67% $10,793 0.44% $10,179
10/31/91 $10,653 1.34% $10,938 0.15% $10,195
11/30/91 $10,208 -4.03% $10,497 0.29% $10,224
12/31/91 $11,193 11.44% $11,698 0.07% $10,231
1/31/92 $11,543 -1.86% $11,481 0.15% $10,247
2/29/92 $11,893 1.29% $11,629 0.36% $10,284
3/31/92 $11,513 -1.95% $11,402 0.51% $10,336
4/30/92 $11,763 2.94% $11,737 0.14% $10,350
5/31/92 $11,783 0.49% $11,795 0.14% $10,365
6/30/92 $11,513 -1.49% $11,619 0.36% $10,402
7/31/92 $11,873 4.09% $12,094 0.21% $10,424
8/31/92 $11,233 -2.05% $11,846 0.28% $10,453
9/30/92 $11,443 1.17% $11,985 0.28% $10,483
10/31/92 $11,483 0.34% $12,025 0.35% $10,519
11/30/92 $11,923 3.40% $12,434 0.14% $10,534
12/31/92 $12,126 1.23% $12,587 -0.07% $10,527
1/31/93 $12,486 0.84% $12,693 0.49% $10,578
2/28/93 $12,589 1.36% $12,866 0.35% $10,615
3/31/93 $12,898 2.11% $13,137 0.35% $10,652
4/30/93 $12,919 -2.42% $12,819 0.28% $10,682
5/31/93 $13,125 2.67% $13,161 0.14% $10,697
6/30/93 $13,073 0.29% $13,200 0.14% $10,712
7/31/93 $13,218 -0.40% $13,147 0.00% $10,712
8/31/93 $13,588 3.79% $13,645 0.28% $10,742
9/30/93 $13,527 -0.77% $13,540 0.21% $10,765
10/31/93 $13,733 2.07% $13,820 0.41% $10,809
11/30/93 $13,630 -0.95% $13,689 0.07% $10,816
12/31/93 $14,044 1.21% $13,855 0.00% $10,816
1/31/94 $14,778 3.40% $14,326 0.27% $10,846
2/28/94 $14,569 -2.71% $13,937 0.34% $10,882
3/31/94 $14,021 -4.36% $13,330 0.34% $10,919
4/30/94 $14,210 1.28% $13,500 0.14% $10,935
5/31/94 $14,358 1.64% $13,722 0.07% $10,942
6/30/94 $14,021 -2.45% $13,386 0.34% $10,980
7/31/94 $14,621 3.28% $13,825 0.27% $11,009
8/31/94 $15,106 4.10% $14,392 0.40% $11,053
9/30/94 $14,716 -2.44% $14,040 0.27% $11,083
10/31/94 $14,674 2.25% $14,356 0.07% $11,091
11/30/94 $14,252 -3.64% $13,834 0.13% $11,105
12/31/94 $14,273 1.48% $14,038 0.00% $11,105
1/31/95 $14,227 2.59% $14,402 0.40% $11,150
2/28/95 $14,656 3.90% $14,964 0.40% $11,194
3/31/95 $14,942 2.95% $15,405 0.33% $11,231
4/30/95 $15,308 2.94% $15,858 0.33% $11,268
5/31/95 $15,789 4.00% $16,492 0.20% $11,291
6/30/95 $16,064 2.32% $16,875 0.20% $11,313
7/31/95 $16,556 3.32% $17,435 0.00% $11,313
8/31/95 $16,453 0.25% $17,479 0.26% $11,343
9/30/95 $16,682 4.22% $18,216 0.20% $11,366
10/31/95 $16,178 -0.36% $18,151 0.33% $11,403
11/30/95 $16,568 4.39% $18,948 -0.07% $11,395
12/31/95 $16,778 1.93% $19,313 -0.07% $11,387
1/31/96 $16,955 3.40% $19,970 0.59% $11,454
2/29/96 $17,061 0.93% $20,156 0.32% $11,491
3/31/96 $17,414 0.96% $20,349 0.52% $11,551
4/30/96 $17,873 1.47% $20,648 0.39% $11,596
5/31/96 $18,144 2.58% $21,181 0.19% $11,618
6/30/96 $18,156 0.38% $21,262 0.06% $11,625
7/31/96 $17,637 -4.42% $20,322 0.19% $11,647
8/31/96 $18,120 2.11% $20,751 0.19% $11,669
9/30/96 $18,509 5.63% $21,919 0.32% $11,706
10/31/96 $18,933 2.76% $22,524 0.32% $11,744
11/30/96 $19,839 7.56% $24,227 0.19% $11,766
12/31/96 $19,951 -1.98% $23,747 0.00% $11,766
</TABLE>
Templeton American S&P 500 Consumer
Trust-Class II(1) Index(2) Price Index(3)
1. Includes all sales charges and represents the change in value of an
investment over the period shown. Total return assumes reinvestment of dividends
and capital gains. Past performance is not predictive of future results.
2. Index is unmanaged and includes reinvested dividends.
3. Source: U.S. Bureau of Labor Statistics.
TEMPLETON AMERICAN TRUST - CLASS II
Periods ended December 31, 1996
<TABLE>
<CAPTION>
Since
Inception
One-Year Three-Year Five-Year (2/27/91)
<S> <C> <C> <C> <C>
Cumulative
Total Return(1) 18.91% 42.06% 78.24% 101.50%
Average Annual
Total Return(2) 16.76% 12.03% 12.03% 12.55%
Value of $10,000
Investment(3) $11,676 $14,059 $17,651 $20,154
</TABLE>
<TABLE>
<CAPTION>
One-Year Total Return(4)
<S> <C> <C> <C> <C>
12/31/92 12/31/93 12/31/94 12/31/95 12/31/96
8.33% 15.82% 1.63% 17.55% 18.91%
</TABLE>
1. Cumulative total return represents the change in value of an investment over
the indicated periods and does not include the sales charges. See Note below.
2. Average annual total return represents the average annual change in value of
an investment over the indicated periods and includes the 1.0% initial sales
charge and the 1.0% contingent deferred sales charge (CDSC), applicable to
shares redeemed within 18 months of purchase. See Note below.
3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the indicated periods and include all sales charges.
4. One-year total return represents the change in value of an investment over
the one-year periods ended on the specified dates and does not include the sales
charges.
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 return to
shareholders.
All total return calculations assume reinvestment of dividends and capital gains
distributions when paid. Investment return and principal value will fluctuate
with market conditions, currencies and the economic, social and political
climates where investments are made. Developing markets involve heightened risks
related to the same factors, in addition to those associated with the relatively
small size and lesser liquidity of these markets. Thus, you may have a gain or
loss when you sell your shares. Past performance is not predictive of future
results.
8
<PAGE> 9
TEMPLETON AMERICAN TRUST, INC.
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE--CLASS I
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
FOR THE PERIOD
MAY 1, 1995+
YEAR ENDED THROUGH
DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- -----------------
<S> <C> <C>
Net asset value, beginning of period $14.23 $13.37
------ ------
Income from investment operations:
Net investment income .20 .11
Net realized and unrealized gain 2.60 1.21
------ ------
Total from investment operations 2.80 1.32
------ ------
Distributions:
Dividends from net investment income (.26) (.20)
Distributions from net realized gains (.75) (.26)
------ ------
Total distributions (1.01) (.46)
------ ------
Change in net asset value 1.79 .86
------ ------
Net asset value, end of period $16.02 $14.23
====== ======
TOTAL RETURN* 19.90% 9.94%
RATIOS /SUPPLEMENTAL DATA
Net assets, end of period (000) $2,053 $ 881
Ratio of expenses to average net assets 1.57% 1.81%**
Ratio of net investment income to average net assets 1.53% 1.31%**
Portfolio turnover rate 15.93% 4.44%
Average commission rate paid (per share) $.0410
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR PERIODS
OF LESS THAN ONE YEAR.
** ANNUALIZED.
+ COMMENCEMENT OF SALES.
9
<PAGE> 10
TEMPLETON AMERICAN TRUST, INC.
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE--CLASS II
(For a share outstanding throughout the year)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
-------------------------------------------------
1996 1995 1994 1993 1992
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 14.25 $ 12.49 $ 13.39 $ 11.77 $ 11.20
------- ------- ------- ------- -------
Income from investment operations:
Net investment income .14 .14 .04 .04 .10
Net realized and unrealized gain 2.54 2.04 .17 1.82 .83
------- ------- ------- ------- -------
Total from investment operations 2.68 2.18 .21 1.86 .93
------- ------- ------- ------- -------
Distributions:
Dividends from net investment income (.14) (.14) (.05) (.03) (.11)
Distributions from net realized gains (.75) (.28) (1.06) (.21) (.09)
Distributions in excess of realized gains -- -- -- -- (.16)
------- ------- ------- ------- -------
Total distributions (.89) (.42) (1.11) (.24) (.36)
------- ------- ------- ------- -------
Change in net asset value 1.79 1.76 (.90) 1.62 .57
------- ------- ------- ------- -------
Net asset value, end of year $ 16.04 $ 14.25 $ 12.49 $ 13.39 $ 11.77
======= ======= ======= ======= =======
TOTAL RETURN* 18.91% 17.55% 1.63% 15.82% 8.33%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000) $44,648 $44,183 $37,959 $34,418 $27,485
Ratio of expenses to average net assets 2.26% 2.40% 2.47% 2.53% 3.17%
Ratio of expenses, net of reimbursement, to average net assets 2.26% 2.40% 2.47% 2.53% 2.25%
Ratio of net investment income to average net assets .85% .95% .34% .31% 1.13%
Portfolio turnover rate 15.93% 4.44% 31.92% 14.10% 27.91%
Average commission rate paid (per share) $ .0410
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS OR THE CONTINGENT DEFERRED
SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 11
TEMPLETON AMERICAN TRUST, INC.
Investment Portfolio, December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS: 77.5%
- ---------------------------------------------------------------------------------------------------------------------
AEROSPACE & MILITARY TECHNICAL SYSTEMS: 1.6%
Boeing Co. U.S. 7,000 $ 744,625
- ---------------------------------------------------------------------------------------------------------------------
AUTOMOBILES: 1.6%
Ford Motor Co. U.S. 23,000 733,125
- ---------------------------------------------------------------------------------------------------------------------
BANKING: 4.1%
Australia & New Zealand Banking Group Ltd. Aus. 55,636 350,682
BankAmerica Corp. U.S. 5,000 498,750
Chase Manhattan Corp., new U.S. 6,000 535,500
NationsBank Corp. U.S. 5,500 537,625
-----------
1,922,557
- ---------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS & COMPONENTS: 1.6%
Pioneer International Ltd. Aus. 175,000 521,620
Uralita SA Sp. 31,250 244,319
-----------
765,939
- ---------------------------------------------------------------------------------------------------------------------
BUSINESS & PUBLIC SERVICES: 2.6%
Esselte AB, B Swe. 22,000 487,107
Wheelabrator Technologies Inc. U.S. 44,000 715,000
-----------
1,202,107
- ---------------------------------------------------------------------------------------------------------------------
CHEMICALS: 1.1%
Great Lakes Chemical Corp. U.S. 11,000 514,250
- ---------------------------------------------------------------------------------------------------------------------
DATA PROCESSING & REPRODUCTION: 3.4%
* Bay Networks Inc. U.S. 20,000 417,500
* Optical Data Systems Inc. U.S. 32,000 384,000
* Quantum Corp. U.S. 28,000 801,500
-----------
1,603,000
- ---------------------------------------------------------------------------------------------------------------------
ELECTRICAL & ELECTRONICS: 3.8%
Alcatel Alsthom SA Fr. 1,600 128,617
* Applied Materials Inc. U.S. 7,200 258,750
* DSC Communications Corp. U.S. 46,000 822,250
Motorola Inc. U.S. 9,000 552,375
-----------
1,761,992
- ---------------------------------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS & INSTRUMENTS: 3.4%
Intel Corp. U.S. 12,000 1,571,250
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 12
TEMPLETON AMERICAN TRUST, INC.
Investment Portfolio, December 31, 1996 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS (CONT.)
- ---------------------------------------------------------------------------------------------------------------------
ENERGY SOURCES: 7.6%
* Barrett Resources Corp. U.S. 32,500 $ 1,385,313
Norsk Hydro AS, ADR Nor. 8,800 471,900
Saga Petroleum AS, B Nor. 20,000 313,578
Societe Elf Aquitane SA Fr. 4,000 364,359
Total SA, B Fr. 7,000 569,720
YPF Sociedad Anonima, ADR Arg. 18,000 454,500
-----------
3,559,370
- ---------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES: 4.1%
Dean Witter Discover & Co. U.S. 10,822 716,958
Federal National Mortgage Assn. U.S. 32,000 1,192,000
-----------
1,908,958
- ---------------------------------------------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER: 4.6%
Boise Cascade Corp. U.S. 20,300 644,525
Georgia-Pacific Corp. U.S. 13,000 936,000
James River Corp. U.S. 17,100 566,438
-----------
2,146,963
- ---------------------------------------------------------------------------------------------------------------------
HEALTH & PERSONAL CARE: 5.0%
Aetna Inc. U.S. 8,500 680,000
Astra AB, A Swe. 15,000 741,219
Windmere-Durable Holdings Inc. U.S. 70,000 901,250
-----------
2,322,469
- ---------------------------------------------------------------------------------------------------------------------
INDUSTRIAL COMPONENTS: 3.0%
BW/IP Inc. U.S. 30,000 495,000
Goodyear Tire & Rubber Co. U.S. 18,000 924,750
-----------
1,419,750
- ---------------------------------------------------------------------------------------------------------------------
INSURANCE: 5.4%
American International Group Inc. U.S. 9,750 1,055,438
Presidential Life Corp. U.S. 47,100 568,144
Progressive Corp. Ohio U.S. 2,700 181,913
Providian Corp. U.S. 3,000 154,125
Travelers Inc. U.S. 12,865 583,764
-----------
2,543,384
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 13
TEMPLETON AMERICAN TRUST, INC.
Investment Portfolio, December 31, 1996 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCKS (CONT.)
- ---------------------------------------------------------------------------------------------------------------------
MERCHANDISING: 5.0%
American Stores Co. U.S. 24,444 $ 999,149
Dayton-Hudson Corp. U.S. 18,000 706,500
* K Mart Corp. U.S. 25,000 259,375
Limited Inc. U.S. 12,510 229,871
Strawbridge & Clothier, A U.S. 8,487 134,731
-----------
2,329,626
- ---------------------------------------------------------------------------------------------------------------------
METALS & MINING: 2.3%
Oregon Steel Mills Inc. U.S. 28,000 469,000
Reynolds Metals Co. U.S. 11,000 620,125
-----------
1,089,125
- ---------------------------------------------------------------------------------------------------------------------
MULTI-INDUSTRY: 1.7%
Hutchison Whampoa Ltd. H.K. 100,000 785,442
- ---------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS: 3.4%
AT&T Corp. U.S. 21,150 920,025
U.S. West Communications Group U.S. 21,200 683,700
-----------
1,603,725
- ---------------------------------------------------------------------------------------------------------------------
TEXTILES & APPAREL: 3.0%
* Fruit of the Loom Inc., A U.S. 23,000 871,125
Shaw Industries Inc. U.S. 45,000 528,750
-----------
1,399,875
- ---------------------------------------------------------------------------------------------------------------------
TRANSPORTATION: 3.7%
APL Ltd. U.S. 27,000 637,875
Brambles Industries Ltd. Aus. 32,000 624,434
Caliber Systems Inc. U.S. 900 17,325
* OMI Corp. U.S. 50,000 437,500
-----------
1,717,134
- ---------------------------------------------------------------------------------------------------------------------
UTILITIES-ELECTRICAL & GAS: 4.8%
Iberdrola SA Sp. 50,000 708,646
* Midamerican Energy Holdings Co. U.S. 40,425 641,747
Pinnacle West Capital Corp. U.S. 27,500 873,125
-----------
2,223,518
- ---------------------------------------------------------------------------------------------------------------------
WHOLESALE & INTERNATIONAL TRADE: 0.7%
Brierley Investments Ltd. N.Z. 370,000 342,658
-----------
TOTAL COMMON STOCKS (cost $23,007,662) 36,210,842
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 14
TEMPLETON AMERICAN TRUST, INC.
Investment Portfolio, December 31, 1996 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
INDUSTRY ISSUE COUNTRY LOCAL CURRENCY** VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BOND: 0.1% (cost $21,405)
- ---------------------------------------------------------------------------------------------------------------------
Brierley Investments Ltd., 9.00%, conv.,
6/30/98 N.Z. 46,250 $ 38,529
- ---------------------------------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 21.8% (cost $10,190,480)
- ---------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bills, 4.78% to 5.01% with
maturities to 3/27/97 U.S. 10,260,000 10,193,129
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.4% (cost $33,219,547) 46,442,500
OTHER ASSETS, LESS LIABILITIES: 0.6% 258,972
-----------
TOTAL NET ASSETS: 100.0% $46,701,472
===========
</TABLE>
* NON-INCOME PRODUCING.
** CURRENCY OF COUNTRIES INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 15
TEMPLETON AMERICAN TRUST, INC.
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
<TABLE>
<S> <C>
Assets:
Investments in securities, at value
(identified cost $33,219,547) $46,442,500
Cash 834
Receivables:
Investment securities sold 219,371
Capital shares sold 190,100
Dividends and interest 65,546
-----------
Total assets 46,918,351
-----------
Liabilities:
Payables:
Investment securities purchased 17,370
Capital shares redeemed 18,186
Accrued expenses 181,323
-----------
Total liabilities 216,879
-----------
Net assets, at value $46,701,472
===========
Net assets consist of:
Net unrealized appreciation 13,222,953
Accumulated net realized gain 912,179
Net capital paid in on shares of capital
stock 32,566,340
-----------
Net assets, at value $46,701,472
===========
Class I
Net asset value per share
($2,053,333 / 128,141 shares
outstanding) $ 16.02
===========
Maximum offering price
($16.02 / 94.25%) $ 17.00
===========
Class II
Net asset value per share
($44,648,139 / 2,782,999 shares
outstanding) $ 16.04
===========
Maximum offering price
($16.04 / 99.00%) $ 16.20
===========
</TABLE>
STATEMENT OF OPERATIONS
for the year ended December 31, 1996
<TABLE>
<S> <C> <C>
Investment income:
(net of $20,598
foreign taxes withheld)
Dividends $ 684,111
Interest 701,763
----------
Total income $1,385,874
Expenses:
Management fees (Note 3) 311,996
Administrative fees (Note 3) 66,856
Distribution fees (Note 3)
Class I 4,831
Class II 431,523
Transfer agent fees (Note 3) 59,000
Custodian fees 5,600
Reports to shareholders 36,500
Audit fees 18,000
Legal fees 14,500
Registration and filing fees 46,000
Trustees fees 1,089
Other 1,889
----------
Total expenses 997,784
----------
Net investment income 388,090
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 2,958,014
Foreign currency
transactions (1,671)
----------
2,956,343
Net unrealized appreciation
on investments 4,503,472
----------
Net realized and
unrealized gain 7,459,815
----------
Net increase in net assets
resulting from operations $7,847,905
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 16
TEMPLETON AMERICAN TRUST, INC.
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
----------------- -----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 388,090 $ 413,577
Net realized gain on investment and foreign currency transactions 2,956,343 804,689
Net unrealized appreciation 4,503,472 5,748,102
----------- -----------
Net increase in net assets resulting from operations 7,847,905 6,966,368
Distributions to shareholders:
From net investment income
Class I (31,751) (11,296)
Class II (360,732) (402,975)
From net realized gain
Class I (89,244) (15,561)
Class II (1,967,862) (864,834)
Capital share transactions (Note 2)
Class I 997,883 867,236
Class II (4,758,459) 565,428
----------- -----------
Net increase in net assets 1,637,740 7,104,366
Net assets:
Beginning of year 45,063,732 37,959,366
----------- -----------
End of year $46,701,472 $45,063,732
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 17
TEMPLETON AMERICAN TRUST, INC.
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton American Trust, Inc. (the Fund) is an open-end, diversified management
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, however, invest up
to 35% of its assets in securities in any foreign country, developed or
underdeveloped. The following summarizes the Fund's significant accounting
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 in good faith by management and approved 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 currencies
are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customarily
enters into 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
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, the differences between the amounts
of dividends, interest, and foreign withholding taxes recorded on the Fund's
books, and the U.S. dollar equivalent of the amounts actually received or paid.
Net unrealized foreign exchange gains and losses arise from changes in the value
of assets and liabilities other than investments in securities at the end of the
fiscal period, resulting from changes in the exchange 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
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
securities 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.
17
<PAGE> 18
TEMPLETON AMERICAN TRUST, INC.
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
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 expenses during the reporting
period. Actual results could differ from those estimates.
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
contingent deferred sales charge on Class II shares, distribution fees, and
voting rights on matters affecting a single class. At December 31, 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
YEAR ENDED MAY 1, 1995 THROUGH
DECEMBER 31, 1996 DECEMBER 31, 1995
-------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Shares sold 96,004 $ 1,454,259 103,187 $ 1,462,727
Shares issued on reinvestment of distributions 6,973 108,639 1,736 24,258
Shares redeemed (36,706) (565,015) (43,053) (619,749)
--------- ----------- -------- -----------
Net increase 66,271 $ 997,883 61,870 $ 867,236
========= =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
CLASS II
--------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1996 DECEMBER 31, 1995
-------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Shares sold 207,954 $ 3,182,096 484,989 $ 6,429,431
Shares issued on reinvestment of distributions 130,716 2,042,358 79,384 1,103,844
Shares redeemed (657,146) (9,982,913) (501,685) (6,967,847)
--------- ----------- -------- -----------
Net increase (decrease) (318,476) $(4,758,459) 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
Investment Counsel, Inc. (TICI), Franklin Templeton Services, Inc. (FTSI),
Franklin Templeton Distributors, Inc. (FTD), and Franklin Templeton Investor
Services, Inc. (FTIS), the Fund's investment manager, administrative manager,
principal 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 FTSI
monthly an administrative fee of 0.15% per annum on the first $200 million of
the Company's aggregate average daily net assets, 0.135% of the next $500
million, 0.10% of the next $500 million, and 0.075% per annum of such average
net assets in excess of $1.2 billion. For the year ended December 31, 1996, FTD
received net commissions of $2,338 and FTIS received fees of $59,000.
18
<PAGE> 19
TEMPLETON AMERICAN TRUST, INC.
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
Under the distribution plans for Class I and Class II shares, the Fund
reimburses FTD quarterly for FTD's costs and expenses in connection with any
activity 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 December 31, 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 $6,015 were paid to FTD for the
year ended December 31, 1996.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel for
the Fund, which firm received fees for the year ended December 31, 1996.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the year
ended December 31, 1996 aggregated $5,044,649 and $8,771,307 respectively. The
cost of securities for federal income tax purposes is the same as that shown in
the investment portfolio. Realized gains and losses are reported on an
identified cost basis.
At December 31, 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 $13,971,433
Unrealized depreciation (748,480)
------------
Net unrealized appreciation $13,222,953
============
</TABLE>
19
<PAGE> 20
TEMPLETON AMERICAN TRUST, INC.
Independent Auditor's Report
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders
Templeton American Trust, Inc.
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of Templeton American Trust, Inc. as of December 31,
1996, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended and the financial highlights for the periods indicated in the accompanying
financial statements. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Templeton American Trust, Inc. as of December 31, 1996, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
[McGLADREY & PULLEN, LLP SIGNATURE]
New York, New York
January 31, 1997
20
<PAGE> 21
NOTES
--------
<PAGE> 22
NOTES
--------
<PAGE> 23
FRANKLIN TEMPLETON GROUP OF FUNDS
LITERATURE REQUEST -- Call 1-800/DIAL BEN (1-800/342-5236) 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.
GLOBAL GROWTH
Franklin Global Health Care Fund
Franklin Templeton Japan Fund
Templeton Developing Markets Trust
Templeton Foreign Fund
Templeton Foreign Smaller
Companies Fund
Templeton Global Infrastructure Fund
Templeton Global
Opportunities Trust
Templeton Global Real Estate Fund
Templeton Global Smaller
Companies Fund
Templeton Greater European Fund
Templeton Growth Fund
Templeton Latin America Fund
Templeton Pacific Growth Fund
Templeton World Fund
GLOBAL GROWTH AND INCOME
Franklin Global Utilities Fund
Franklin Templeton German
Government Bond Fund
Franklin Templeton
Global Currency Fund
Mutual European Fund
Templeton Global Bond Fund
Templeton Growth and Income Fund
GLOBAL INCOME
Franklin Global Government
Income Fund
Franklin Templeton Hard
Currency Fund
Franklin Templeton High
Income Currency Fund
Templeton Americas
Government Securities Fund
GROWTH
Franklin Blue Chip Fund
Franklin California Growth Fund
Franklin DynaTech Fund
Franklin Equity Fund
Franklin Gold Fund
Franklin Growth Fund
Franklin MidCap Growth Fund
Franklin Small Cap Growth Fund
Mutual Discovery Fund
GROWTH AND INCOME
Franklin Asset Allocation Fund
Franklin Balance Sheet
Investment Fund
Franklin Convertible Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Franklin MicroCap Value Fund
Franklin Natural Resources Fund
Franklin Real Estate Securities Fund
Franklin Rising Dividends Fund
Franklin Strategic Income Fund
Franklin Utilities Fund
Franklin Value Fund
Mutual Beacon Fund
Mutual Qualified Fund
Mutual Shares Fund
Templeton American Trust, Inc.
FUND ALLOCATOR SERIES:
Franklin Templeton
Conservative Target Fund
Franklin Templeton
Moderate Target Fund
Franklin Templeton
Growth Target Fund
INCOME
Franklin Adjustable Rate
Securities Fund
Franklin Adjustable U.S.
Government Securities Fund
Franklin's AGE High Income Fund
Franklin Investment
Grade Income Fund
Franklin Short-Intermediate U.S.
Government Securities Fund
Franklin U.S. Government
Securities Fund
Franklin Money Fund
Franklin Federal Money Fund
FOR NON-U.S. INVESTORS:
Franklin Tax-Advantaged
High Yield Securities Fund
Franklin Tax-Advantaged
International Bond Fund
Franklin Tax-Advantaged U.S.
Government Securities Fund
FOR CORPORATIONS:
Franklin Corporate Qualified
Dividend Fund
FRANKLIN FUNDS SEEKING
TAX-FREE INCOME
Federal Intermediate-Term
Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund
Puerto Rico Tax-Free Income Fund
Tax-Exempt Money Fund
FRANKLIN STATE-SPECIFIC
FUNDS SEEKING
TAX-FREE INCOME
Alabama
Arizona*
Arkansas**
California*
Colorado
Connecticut
Florida*
Georgia
Hawaii**
Indiana
Kentucky
Louisiana
Maryland
Massachusetts***
Michigan*
Minnesota***
Missouri
New Jersey
New York*
North Carolina
Ohio***
Oregon
Pennsylvania
Tennessee**
Texas
Virginia
Washington**
VARIABLE ANNUITIES
Franklin Valuemark(R)
Franklin Templeton
Valuemark Income Plus
(an immediate annuity)
*TWO OR MORE FUND OPTIONS AVAILABLE: LONG-TERM PORTFOLIO, INTERMEDIATE-TERM
PORTFOLIO, A PORTFOLIO OF INSURED MUNICIPAL SECURITIES,
AND/OR A HIGH YIELD PORTFOLIO (CA) AND A MONEY MARKET PORTFOLIO (CA AND NY).
**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.
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.
12/96.1
<PAGE> 24
TEMPLETON
AMERICAN
TRUST, INC.
Annual Report
December 31, 1996
Templeton American Trust, Inc.
Auditors
McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017-2416
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 risk factors, 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.
[Global Backround]
TL100 A96 02/97
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