FRANKLIN INTERNATIONAL TRUST, N-30D, 1995-06-30

FRANKLIN INTERNATIONAL TRUST
N-30D, 1995-06-30

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TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
Franklin Pacific
Growth Fund ............................. 2

Franklin International
Equity Fund ............................. 6

Statement of Investments ................ 12

Financial Statements .................... 23

Notes to Financial Statements ........... 26
</TABLE>

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.

- --------------------------------------------------------------------------------

June 16, 1995

Dear Shareholder:

We are pleased to bring you the fourth semi-annual report for the Franklin
International Trust, which covers the six months ended April 30, 1995. The Trust
is made up of the Franklin Pacific Growth Fund and the Franklin International
Equity Fund. Templeton Investment Counsel, Inc., noted for its expertise in
global investing, co-manages both funds.

The six months covered by this report were a reminder that volatility is a
fundamental market condition and a normal part of investing. During such times,
it's especially important to exercise patience and concentrate on the
achievement of your long-term investment goals, rather than on short-term market
cycles.

On the following pages, you will find detailed discussions about the Franklin
Pacific Growth Fund and the Franklin International Equity Fund. Although the
funds have different investment objectives and strategies, their managers share
a dedication to the principles of careful selection, broad diversification and
constant professional supervision. For specific information about the funds,
including the effects of market conditions and management strategies upon their
performance during the past six months, please refer to the pages listed in the
table of contents.

We appreciate your support and look forward to serving you in years to come.

Sincerely,

Rupert H. Johnson, Jr.
President
Franklin International Trust

<PAGE>

FRANKLIN PACIFIC GROWTH FUND
- --------------------------------------------------------------------------------

YOUR FUND'S OBJECTIVE

The Franklin Pacific Growth Fund seeks to provide long-term growth of capital by
investing in equity securities of which at least 65% trade on markets in the
Pacific Rim.

The six-month period ended April 30, 1995 was a volatile time for Pacific Rim
equity markets. Many global equity markets, including those in the Pacific Rim
region, experienced severe declines in 1994 due to rising interest rates and
investor uncertainty surrounding Mexico's devaluation of its currency in
December.

Hong Kong stock prices were influenced significantly in 1994 by the increase in
U.S. interest rates. Since the Hong Kong dollar is linked to the U.S. dollar,
the previously low level of interest rates and rapid economic growth in Hong
Kong led to speculation in most asset classes, especially in real estate. When
interest rates rose, the cost of financing real estate purchases became more
expensive and demand for property fell, which exerted pressure on land prices.
Because a large part of Hong Kong stock market earnings is derived from or
associated with real estate, this weakness had a substantial, negative effect on
stock prices. In the first quarter of 1995, however, Hong Kong property prices
stabilized, investor sentiment improved, and the environment in Southeast Asia
brightened.

The Japanese stock market suffered from a bevy of problems throughout the
reporting period, including the bankruptcy of Barings PLC and the continued
strength of the yen, which threatened the earnings of Japan's exporters. The
stronger yen also played havoc with the balance sheets of many companies in
Southeast Asia.

On April 30, 1995, Hong Kong remained our largest single country exposure,
accounting for 24.5% of total net assets. As you know, periods of uncertainty
and volatility often present us with good buying opportunities. For example, at
the end of the reporting period, Hong Kong stocks were selling at just nine
times their estimated 1996 earnings per share. In the past, this market has
peaked at multiples of about 16 to 19, and bottomed at around 8 to 9. Weakness
in the Hong Kong real estate market prompted us to initiate a position in Sun
Hung Kai Properties and to increase our holdings of New World Development Co.,
Ltd. We believe these stocks represent good value, with the potential for
significant capital appreciation.

<PAGE>

- --------------------------------------------------------------------------------

Our exposure to Japan represented 22.7% of total net assets at the end of the
reporting period. Although the Japanese equity market strengthened for U.S.
investors in March 1995 due to the unprecedented resurgence of the yen to
post-war highs, Japan continues to face problems with a questionable banking
system and low consumer spending. We, therefore, remain underweighted in Japan
relative to most widely accepted indices. For example, as of April 30, 1995, the
Morgan Stanley Capital International Pacific Basin Index had a Japanese
weighting of 83.0%, compared to just 22.7% for the fund. We continue to like the
fund's defensive positions, such as East Japan Railway Co. and Mitsubishi Heavy
Industrial, Ltd. Since our investment strategy is to seek to buy growth at the
lowest price, we will continue to monitor events in this country very closely.

Lately, taking advantage of weakness in Indonesia and Thailand, we increased our
exposure to these markets. For example, we added to our holdings of P.T.
Indorama Synthetics, an Indonesian textiles manufacturer, and Bangkok Bank
Public Co., Ltd., Thailand's largest commercial bank.

Looking forward, we are optimistic about the prospects for Pacific Rim equity
markets.

This region continues to offer a variety of investment opportunities in
industrialized nations such as Japan and Taiwan, newly industrialized nations
like Korea, and nations rich with natural resources

3
GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX
<PAGE>
- --------------------------------------------------------------------------------

such as Australia. Although these markets experience volatility from time to
time, we are confident that our value-oriented investment approach should
benefit our shareholders over the long term. There are, of course, special risks
involved with investing in a portfolio of securities in a single geographic
region, which also contains developing markets. These risks include currency
fluctuations, market volatility, economic, social, and political uncertainty,
and in some cases the relatively small size and lesser liquidity of these
markets. For further information regarding these special considerations, please
refer to the fund's prospectus.

We appreciate your participation in the Franklin Pacific Growth Fund.

- ----------------------------------------------------
FRANKLIN PACIFIC GROWTH FUND
Top 10 Holdings on April 30, 1995
Based on Total Net Assets
<TABLE>
<CAPTION>
% OF TOTAL
COMPANY, INDUSTRY, COUNTRY NET ASSETS
- ----------------------------------------------------
<S> <C>
Nippon Telegraph & Telephone Corp. 3.9%
Telecommunications, Japan
- ----------------------------------------------------
Nintendo Co. 3.7%
Entertainment & Leisure, Japan
- ----------------------------------------------------
Bangkok Bank Public Co., Ltd. 3.2%
Banking, Thailand
- ----------------------------------------------------
East Japan Railway Co. 3.0%
Transportation, Japan
- ----------------------------------------------------
Mitsubishi Heavy Industrial, Ltd. 3.0%
Industrial Components, Japan
- ----------------------------------------------------
HSBC Holdings Corp. 2.9%
Banking, Hong Kong
- ----------------------------------------------------
Singapore Airlines, Ltd. 2.7%
Transportation, Singapore
- ----------------------------------------------------
Jardine Strategic Holdings, Ltd. 2.6%
Multi-Industry, Hong Kong
- ----------------------------------------------------
Western Mining Corp. Holdings, Ltd. 2.4%
Metals & Mining, Australia
- ----------------------------------------------------
Philippine Long Distance Telephone Co. 2.3%
Telecommunications, Philippines
- ----------------------------------------------------
</TABLE>

FOR A COMPLETE LIST OF PORTFOLIO HOLDINGS, PLEASE SEE PAGE 12 OF THIS REPORT.

<PAGE>
- --------------------------------------------------------------------------------

PERFORMANCE SUMMARY

The Franklin Pacific Growth Fund reported total returns of -7.50% and -2.98%,
respectively, for the six-month and one-year periods ended April 30, 1995. Total
return measures the change in value of an investment, assuming reinvestment of
dividends and capital gains, and does not include the maximum initial sales
charge.

Although we expect short-term market volatility, we have always maintained 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 table to the
right, the fund has delivered a cumulative total return of more than +53% since
its inception on September 20, 1991.

The fund's share price, as measured by net asset value, decreased from $15.40 on
October 31, 1994 to $13.91 on April 30, 1995. During the reporting period,
shareholders received distributions of 6.2 cents ($0.062) per share in dividend
income, 11.41 cents ($0.1141) per share in long-term capital gains and 15.69
cents ($0.1569) per share in short-term capital gains. Of course, past
performance is not indicative of future results, and distributions will vary
depending on income earned by the fund and any profits realized from the sale of
securities in the fund's portfolio.

- --------------------------------------------------------------------------------
FRANKLIN PACIFIC GROWTH FUND
Periods ended April 30, 1995

<TABLE>
<CAPTION>
SINCE
INCEPTION
ONE-YEAR (09/20/91)
- --------------------------------------------------------------------------------
<S> <C> <C>
Cumulative Total Return1 -2.98% 53.52%

Average Annual Total Return2 -7.36% 11.17%
- --------------------------------------------------------------------------------
</TABLE>

1. Cumulative total return shows the change in value of an investment over the
specified periods and does not reflect the maximum 4.5% initial sales charge.

2. Average annual total return represents the average annual change in value of
an investment over the specified periods and includes the maximum 4.5% initial
sales charge.

All total return calculations assumes reinvestment of dividends and capital
gains at net asset value. Investment return and principal value will fluctuate
with market conditions, and you may have a gain or loss when you sell your
shares. Past performance is not predictive of future results.

<PAGE>

FRANKLIN INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------

YOUR FUND'S OBJECTIVE

The Franklin International Equity Fund seeks to provide long-term growth of
capital by investing in an internationally diversified portfolio of equity
securities, of which at least 65% trade on markets in countries other than the
United States.

International economic and securities market conditions remained volatile during
the six months under review. Most of the economic volatility was centered around
the currency crisis in Mexico, with emerging markets in general experiencing the
majority of the stock price fluctuations.

As we search the world in pursuit of value, we are cognizant that conditions
have deteriorated in certain countries or industries. For example, land prices
in Hong Kong have been down sharply, and Mexico has seen its financial condition
hindered by a massive devaluation of its currency, excessive interest rate
levels and added political instability. Even in the U.S., the once-stable
utility industry has been challenged by greater competition. Yet, in most cases,
we believe the magnitude of the decline in stock prices has more than
compensated for these concerns.

Our style of investing has always attempted to capitalize on volatile and
uncertain periods by adding to, or initiating positions in, securities which we
feel are cheap or undervalued. That means we are buying securities where we
believe the problems are temporary or the reaction of the market is too dramatic
relative to the present environment.

Three significant events have led to the decline of stock prices in Hong Kong
and China. The first is the natural follow-through after a period of excessive
optimism. Any market or class of security tends to experience a period of
"cooling off" after excessive speculation. A second event, of even greater
influence on stock prices, was the increase in U.S. interest rates. Since the
Hong Kong dollar is linked to the U.S. dollar, the low level of interest rates
and rapid economic growth in Hong Kong led to speculation in most asset classes,
particularly in real estate. When interest rates began to rise, the cost of
borrowing money to finance real estate purchases became more expensive, causing
property demand to fall. Weaker demand put pressure on land prices. Since a
large part of Hong Kong equity market earnings is derived from or associated
with real estate, the impact had a substantial effect on stock prices.

<PAGE>
- --------------------------------------------------------------------------------

A third significant event is the anticipated death of Deng Xiaoping. Many
investors feel that the political and social transition at Deng's death will
have a greater impact on Hong Kong's future than the Chinese takeover of Hong
Kong in 1997. China's attitude when it assumes control of Hong Kong in 1997 may
well depend on who assumes control there after Deng's death.

These concerns, as well as others, we feel are reflected in current stock
prices, so we are buying both Hong Kong and Chinese securities for your fund. An
example of a price decline resulting in a purchase is Maanshan Iron & Steel Co.
Ltd., a Chinese manufacturer of steel and steel-related products.

In Latin America, the deterioration of Mexico's financial condition and the
massive devaluation of its currency have put pressure on prices throughout the
region. There are certainly many negative implications from a currency
devaluation. Few investors realize, however, that there are benefits for
companies that incur costs in local currency but which produce goods that can be
sold overseas, generating revenue in foreign currencies. For these companies, a
currency devaluation has the effect of lowering the local cost of production
relative to foreign revenue. We are concentrating our research efforts on
companies that are not overly burdened by the high level of interest rates, and
which also can benefit from currency devaluation.

One example of such an attractive security is YPF SA, a major integrated oil
company in Argentina. Although we believe YPF is financially sound, its price
declined with the Latin American market, in part due to its regional proximity
to Mexico and the general uncertainty that has been endemic of late. Besides its
emerging market locale, YPF also affords us the ability to gain some

7
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX
<PAGE>
- --------------------------------------------------------------------------------

commodity exposure. It controls half the oil sector in Argentina, producing oil
and natural gas while earning revenues in U.S. dollars.

One particular area where we feel we can capitalize on price volatility and
inefficiencies is in hard assets, or commodities as they are commonly known.
Commodities now account for almost one-quarter of the $3.6 trillion in total
world trade and for just under one-half of all exports from developing
countries. There are huge differences in the values placed on commodity-related
companies in different regions of the world. For example, U.S. cement companies
have a value per unit of production of $144 per ton, which is significantly
larger than the $46 per ton in Eastern Europe and $1 per ton in Russia.
Similarly, the value per unit of oil production ranges from $7.06 per barrel in
North America to $0.04 per barrel in Russia. While lower valuations in certain
countries reflect the difficult economic environments, political risks and
relative company inefficiencies, we are convinced that a large degree of
fundamental growth

- --------------------------------------------------------------------------------
FRANKLIN INTERNATIONAL EQUITY FUND
Top 10 Holdings on April 30, 1995
Based on Total Net Assets

<TABLE>
<CAPTION>
% OF TOTAL
COMPANY, INDUSTRY, COUNTRY NET ASSETS
- --------------------------------------------------------------------------------
<S> <C>
Internationale Nederlanden Groep, NV 3.0%
Insurance, Netherlands
- --------------------------------------------------------------------------------
Hafslund Nycomed 2.7%
Health & Personal Care, Norway
- --------------------------------------------------------------------------------
Enso-Gutzeit Oy 2.4%
Forest Products & Paper, Finland
- --------------------------------------------------------------------------------
ACE, Ltd. 2.3%
Insurance, Bermuda
- --------------------------------------------------------------------------------
Philips Electronics, NV 2.3%
Electrical & Electronics, Netherlands
- --------------------------------------------------------------------------------
Pharmacia AB 2.1%
Health & Personal Care, Sweden
- --------------------------------------------------------------------------------
ECCO, SA 2.0%
Business & Public Services, France
- --------------------------------------------------------------------------------
Telefonica de Espana 2.0%
Telecommunications, Spain
- --------------------------------------------------------------------------------
Volvo AB 2.0%
Automobiles, Sweden
- --------------------------------------------------------------------------------
DSM, NV 1.9%
Chemicals Netherlands
- -------------------------------------------------------------------------------

</TABLE>

FOR A COMPLETE LIST OF PORTFOLIO HOLDINGS, PLEASE SEE PAGE 17 OF THIS REPORT.

<PAGE>

- --------------------------------------------------------------------------------

and opportunity remains. Beyond regional differences in market valuations,
commodity prices in general have been under pressure for quite some time and,
despite recent uptrends, many prices are still at levels where their production
cost is higher than current market prices. Under such an environment, we don't
expect many producers of certain commodities to be increasing supply
significantly in the near future.

The question then is, why might the price levels of these commodities, or hard
assets, change in the future? To answer this question, we have to look only as
far as the world's developing markets. These markets are huge sources of
potential demand, with rapid population growth and increasing standards of
living acting as a catalyst for long-term demand. As per capita income rises,
the demand for raw materials increases. People have more money, so they consume
more. Even with strong economic growth, developing economies are currently at
per capita consumption levels far below developed market levels. For example,
China's demand for steel from 1987 to 1992 grew from 40 million tons to 70
million tons per year, yet per capita consumption is still only 129 pounds,
versus 1,115 pounds in Korea. If demand for steel in China continues to grow at
8% per year for 10 years, as it has been, it alone will account for 25% of the
current total gross demand for steel today. Using energy as a further example,
we see that China consumes 0.36 liters of oil per capita per day. If this were
to rise to 4.36 liters per day, equal to Taiwan's consumption level, China alone
would require approximately 4 billion extra liters of oil per day. This extra
consumption would roughly equal 29 billion barrels per day, or 2 million barrels
above the 27 million barrels per day produced by OPEC in 1993. Commodities are
thus a key component in global economics and should continue to play an integral
role in the transition from an emerging economy to the industrialized, developed
stage.

Many investors believe that recent volatility in foreign markets indicates that
the risk of investing overseas has increased. Volatility is often equated with
risk. The greater the price fluctuation of an asset, the more risky that asset
class is often perceived. We believe that the risk of investing overseas may, in
some instances, have actually declined. The main reason is that, in general,
price declines in many equity markets have been greater or more significant than
valuation declines.

<PAGE>
- --------------------------------------------------------------------------------

In many respects, the market declines and the volatility experienced overseas
are consistent with what we have seen historically, whereas the market
volatility in the U.S. has been abnormally low. Hong Kong, for example, has
experienced eight corrections of more than 30% over the last 10 years, three of
which were more than 40%, yet $1.00 invested in Hong Kong at the beginning of
the last 10-year period has grown to over $4.00. In the U.S., however, we have
not experienced a normal price correction for many years. A "normal" or
"average" correction means that stock prices decline 15% to 20% over a 13-month
period, and it takes 21 months from the beginning of price declines until you
return to the point at which you started. A "normal" price correction in an
emerging market may be much shorter, generally lasting only six months but
showing a more significant decline.

We actually welcome an environment of volatility because it creates uncertainty,
which rewards us with opportunity. An investor's first instinct is to shun
uncertainty, for it is equated with risk. We try to look beyond the uncertainty
and speculation that easily overshadow a market and instead focus on the core
fundamentals that influence value. Many of the key fundamentals haven't changed
significantly, and instead of finding ourselves in an uncertain and volatile
period, we are actually in a period of opportunity. Of course, foreign investing
involves special risks, including currency fluctuations, market volatility, and
economic, social, and political uncertainty; developing markets involve similar
but heightened risks.

We thank you for your participation in the Franklin International Equity Fund
and look forward to serving your investment needs in the months and years to
come.

<PAGE>
- --------------------------------------------------------------------------------

PERFORMANCE SUMMARY

The Franklin International Equity Fund reported a total return of -3.65% for the
six-month period ended April 30, 1995. Total return measures the change in value
of an investment, assuming reinvestment of dividends and capital gains at net
asset value, and does not include the maximum initial sales charge.

We have always maintained 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 to the right, the fund has delivered a cumulative total
return of over +43% since its inception on September 20, 1991.

The fund's share price, as measured by net asset value, decreased from $13.83 on
October 31, 1994 to $12.66 on April 30, 1995. During the sixth-month period,
shareholders received distributions of 5.5 cents ($0.055) per share in dividend
income, and 58.8 cents ($0.588) per share in capital gains, of which 34 cents
($0.34) represented long-term gains and 24.8 cents ($0.248) represented
short-term gains. Of course, past performance is not predictive of future
results, and distributions will vary depending on income earned by the fund and
any profits realized from the sale of securities in the fund's portfolio.

As always, it is important to remember that there are special risks involved
with foreign investing. Fund share prices and returns will fluctuate with market
conditions, currencies and the economic and political climates where investments
are made; however, such fluctuation can provide long-term investors with
opportunities to purchase securities at prices which may be depressed due to
investor pessimism surrounding political and economic uncertainty.

- --------------------------------------------------------------------------------
FRANKLIN INTERNATIONAL EQUITY FUND
Periods ended April 30, 1995

<TABLE>
<CAPTION>
SINCE
INCEPTION
ONE-YEAR (09/20/91)
- --------------------------------------------------------------------------------
<S> <C> <C>
Cumulative Total Return1 0.38% 43.64%

Average Annual Total Return2 -4.11% 9.15%
- --------------------------------------------------------------------------------
</TABLE>

1. Cumulative total return shows the change in value of an investment over the
specified periods and does not reflect the current maximum 4.5% initial sales
charge.

2. Average annual total return represents the average annual increase in the
value of an investment over the specified periods and includes the current
maximum 4.5% initial sales charge.

All total return calculations assume reinvestment of dividends and capital gains
at net asset value. Investment return and principal value will fluctuate, so
that your shares, when redeemed, may be worth more or less than their original
cost. Past performance is not predictive of future results.

<PAGE>

SHARES/ VALUE
COUNTRY* WARRANTS FRANKLIN PACIFIC GROWTH FUND (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS & WARRANTS 91.9%
AUSTRALIA 15.3%
AU 104,800 Alcan Australia, Ltd. ................................................ $ 212,672
AU 160,159 Australia & New Zealand Banking Group, Ltd. .......................... 591,779
AU 180,635 Australian Gas and Light Co. ......................................... 591,234
AU 110,000 Brambles Industries, Ltd. ............................................ 1,084,918
AU 490,000 BTR Nylex, Ltd. ...................................................... 958,723
AU 81,300 Comalco, Ltd. ........................................................ 304,539
AU 277,869 Gio Australia Holdings, Ltd. ......................................... 563,883
AU 872,017 Goodman Fielder Wattie, Ltd. ......................................... 761,116
AU 507,000 National Foods, Ltd. ................................................. 619,529
AU 214,884 Pacific Dunlop, Ltd. ................................................. 528,282
AU 226,344 (a)Western Mining Corp. Holdings, Ltd. .................................. 1,280,835
AU 152,919 Westpac Banking Corp. ................................................ 562,803
----------
8,060,313
----------
HONG KONG 24.5%
HK 350,000 Cathay Pacific Airways, Ltd. ......................................... 490,570
HK 200,000 Cheung Kong Holdings, Ltd. ........................................... 842,268
HK 1,433,000 Fountain Set Holdings, Co. ........................................... 203,630
HK 700,000 Gold Peak Industries (Holdings), Ltd. ................................ 257,719
HK 496,000 Grand Hotel Holdings, Ltd. ........................................... 166,593
HK 2,430,000 Great Wall Electronics International, Ltd. ........................... 163,235
HK 34,600 (a)Great Wall Electronics International, Ltd., warrants ................. 223
HK 32,200 (a)Hang Lung Development Co., Ltd., warrants ............................ 4,243
HK 861,520 Hon Kwok Land Investment Co., Ltd. ................................... 200,328
HK 38,400 (a)Hong Kong & China Gas Co., Ltd., warrants ............................ 4,365
HK 101,000 Hong Kong Electric Holdings, Ltd. .................................... 309,876
US 141,000 Hong Kong Land Holdings Co. .......................................... 265,080
HK 500,000 Hong Kong Telecommunications Co., Ltd. ............................... 978,556
HK 129,673 HSBC Holdings Corp. .................................................. 1,503,443
HK 540,346 HSIN Chong Construction Group ........................................ 58,635
HK 220,000 Hutchinson Whampoa, Ltd. ............................................. 954,915
US 83,200 Jardine Matheson Holdings, Ltd. ...................................... 661,440
US 393,750 Jardine Strategic Holdings, Ltd. ..................................... 1,338,750
US 43,750 (a)Jardine Strategic Holdings, Ltd., warrants ........................... 0
HK 850,000 Lai Sun Development Co., Ltd. ........................................ 98,824
HK 100,000 Li & Fung, Ltd. ...................................................... 69,758
HK 600,000 Maanshan Iron and Steel Co., Ltd. .................................... 106,188
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>

<TABLE>
<CAPTION>
SHARES/ VALUE
COUNTRY* WARRANTS FRANKLIN PACIFIC GROWTH FUND (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS & WARRANTS (CONT.)
HONG KONG (CONT.)
HK 714,000 National Mutual Asia, Ltd. ........................................... $ 417,369
HK 311,691 New World Development Co., Ltd. ...................................... 809,326
HK 100,000 Peregrine Investment Holdings, Ltd. .................................. 105,284
US 59,500 Shandong Huaneng Power Co. Ltd., ADR ................................. 483,438
HK 550,000 Shun Tak Holdings, Ltd. .............................................. 333,936
HK 213,400 Sing Tao Holdings, Ltd. .............................................. 139,216
HK 344,000 South China Morning Post, Ltd. ....................................... 204,418
HK 80,000 Sun Hung Kai Properties............................................... 510,528
HK 42,500 Swire Pacific, Ltd. .................................................. 284,120
HK 538,000 Tomei International Holdings, Ltd. ................................... 35,445
HK 200,000 Wheelock & Co., Ltd. ................................................. 312,621
HK 397,000 Winsor Industrial Corp., Ltd. ........................................ 487,211
HK 910,000 Yaohan Hong Kong Corp., Ltd. ......................................... 102,274
-----------
12,903,825
-----------
INDONESIA 3.9%
ID 84,000 P.T. Bali Bank ....................................................... 139,185
ID 200,000 P.T. Barito Pacific Timber ........................................... 223,914
ID 260,400 P.T. Evershine Textile ............................................... 174,922
ID 111,500 P.T. Hadtex Indosyntex ............................................... 54,926
US 12,500 (a)P.T. Indonesia Satellite, ADR ........................................ 451,563
ID 174,751 P.T. Indorama Synthetics ............................................. 555,635
ID 74,000 P.T. Inti Indorayon Utama ............................................ 140,842
ID 94,900 P.T. Japfa Comfeed Indonesia ......................................... 65,873
ID 93,000 P.T. Pabrik Kertas Tjiwi Kimia ....................................... 131,191
ID 40,000 P.T. Panin Bank ...................................................... 39,409
ID 70,000 Toko Gunung Agung .................................................... 50,940
-----------
2,028,400
-----------
JAPAN 22.7%
JP 307 East Japan Railway Co. ............................................... 1,596,466
JP 90,200 Hitachi, Ltd. ........................................................ 917,725
JP 28,000 Matsushita Electric Industrial Co. ................................... 469,804
JP 217,000 Mitsubishi Heavy Industrial, Ltd. .................................... 1,575,177
JP 30,000 Nintendo Co. ......................................................... 1,924,198
JP 230 Nippon Telegraph & Telephone Corp. ................................... 2,033,557
JP 120,000 Nisshinbo Industries, Inc. ........................................... 1,196,644
JP 60,000 Nittetsu Mining Co. .................................................. 600,464
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>

<TABLE>
<CAPTION>
SHARES/ VALUE
COUNTRY* WARRANTS FRANKLIN PACIFIC GROWTH FUND (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS & WARRANTS (CONT.)......................................
JAPAN (CONT.)
JP 110,000 Rengo Co., Ltd. ...................................................... $ 839,055
JP 1,000 Tenma Corp. .......................................................... 24,395
JP 16,000 Tokyo Style Holdings Cos. ............................................ 245,612
JP 78,000 Toyo Engineering Co. ................................................. 523,496
-----------
11,946,593
-----------
MALAYSIA 4.1%
MY 50,000 Commerce Asset Holdings Berhad ....................................... 218,447
MY 317,333 Malaysian International Berhad ....................................... 821,574
MY 10,000 Oriental Holdings Berhad ............................................. 47,735
MY 120,000 Public Finance Berhad ................................................ 219,417
MY 327,600 Sime Darby Berhad .................................................... 834,903
-----------
2,142,076
-----------
NEW ZEALAND .4%
NZ 86,200 Fletcher Challenge, Ltd. ............................................. 231,758
-----------
PHILIPPINES 3.7%
PH 17,250 Philippine Long Distance Telephone Co. ............................... 1,079,367
US 2,080 Philippine Long Distance Telephone Co., ADR .......................... 132,600
PH 75,460 Philippine National Bank ............................................. 715,494
-----------
1,927,461
-----------
SINGAPORE 5.4%
SG 109,200 City Developments, Ltd. .............................................. 642,583
US 20,000 GP Batteries International Co., ADR .................................. 48,000
SG 244,000 Parkway Holdings, Ltd. ............................................... 542,806
SG 150,000 Singapore Airlines, Ltd. ............................................. 1,442,411
SG 27,200 Singapore Bus Service, Ltd. .......................................... 181,529
-----------
2,857,329
-----------
THAILAND 7.7%
TH 174,000 Bangkok Bank Public Co., Ltd. ........................................ 1,683,756
TH 78,500 Charoen Pokphand Feedmill Co. Ltd. ................................... 523,440
TH 162,833 Industrial Finance Corp. of Thailand ................................. 347,580
TH 87,000 MDX Co., Ltd. ........................................................ 215,776
TH 22,700 Oriental Hotel Public Co., Ltd. ...................................... 61,607
TH 3,000 Siam Cement Corp. .................................................... 172,474
TH 37,140 Thai Farmers Bank Public Co., Ltd. ................................... 247,650
TH 90,860 Thai Farmers Bank Public Co., Ltd. (Foreign).......................... 797,956
-----------
4,050,239
-----------
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

US 3,419,913 Joint Repurchase Agreement, 5.975%, 05/01/95 (Maturity Value $3,389,940)
(COST $3,388,253)
Collateral: U.S. Treasury Notes, 4.75% - 9.00%, 07/15/95 - 01/31/00 .. 3,388,253
-----------
TOTAL INVESTMENTS (COST $53,457,170) 98.6% .................... 51,864,595
OTHER ASSETS AND LIABILITIES, NET1.4% .......................... 732,026
-----------
NET ASSETS 100.0% ............................................. $52,596,621
===========

At April 30, 1995, the net unrealized depreciation based on the cost of
investments for income tax purposes of $53,459,122 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ........................ $ 4,420,674
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value......................... (6,015,201)
-----------
Net unrealized depreciation ........................................ $(1,594,527)
===========
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>

FRANKLIN PACIFIC GROWTH FUND
- --------------------------------------------------------------------------------
CURRENCY LEGEND:
AU - Australia
HK - Hong Kong
ID - Indonesia
JP - Japan
MY - Malaysia
NZ - New Zealand
PH - Philippines
SG - Singapore
TH - Thailand
US - United States of America

* Securities traded in currency of country indicated.
(a)Non-income producing.
(b)See Note 7 regarding Rule 144A securities.
(c)Face amount for repurchase agreements is for the underlying collateral.
(d)See Note 1(h) regarding Joint Repurchase Agreement.

The accompanying notes are an integral part of these statements.

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, APRIL 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
WARRANTS & VALUE
COUNTRY* RIGHTS FRANKLIN INTERNATIONAL EQUITY FUND (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS, WARRANTS & RIGHTS 90.4%
ARGENTINA 1.1%
AR 35,975 CIA Interamericana de Automo ......................................... $ 167,275
AR 4,000 YPF, SA .............................................................. 81,996
US 13,700 YPF, SA, ADR ......................................................... 277,425
----------
526,696
----------
AUSTRALIA 3.7%
AU 90,116 Australia & New Zealand Banking Group, Ltd. .......................... 332,974
AU 53,000 Comalco, Ltd. ........................................................ 198,531
AU 46,000 (a)Email, Ltd. .......................................................... 120,115
AU 79,958 Gio Australia Holdings, Ltd. ....................................... 162,260
AU 106,600 National Foods, Ltd. ................................................ 130,260
AU 116,077 Pacific Dunlop, Ltd. ................................................ 285,369
AU 241,300 Pioneer International, Ltd. ......................................... 586,204
----------
1,815,713
----------
BELGIUM 1.3%
BE 2,200 (a)Arbed, SA ............................................................ 331,581
BE 600 Solvay, SA ........................................................... 325,973
----------
657,554
----------
BERMUDA 2.3%
US 43,400 ACE, Ltd. ............................................................ 1,150,100
----------
CANADA 2.2%
CA 13,600 Bank of Montreal ..................................................... 277,592
CA 14,000 Canadian Imperial Bank of Commerce ................................... 348,829
CA 9,100 London Insurance Group, Inc. ........................................ 175,702
CA 9,300 National Bank of Canada .............................................. 69,260
CA 15,300 Toronto-Dominion Bank ................................................ 225,074
----------
1,096,457
----------
CHINA .2%
US 11,000 Shandong Huaneng Power, ADR .......................................... 89,375
----------
COLOMBIA .5%
US 14,100 Banco Ganadero, SA ................................................... 253,800
----------
FINLAND 3.4%
FI 9,000 Amer Group, Ltd. ..................................................... 183,673
FI 133,200 Enso-Gutzeit Oy ...................................................... 1,199,831
FI 15,000 Outokumpu Oy ......................................................... 268,121
FI 8,400 (a)Outokumpu Oy, warrants ............................................... 4,926
----------
1,656,551
----------
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

<TABLE>
<CAPTION>
SHARES
WARRANTS & VALUE
COUNTRY* RIGHTS FRANKLIN INTERNATIONAL EQUITY FUND (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS, WARRANTS & RIGHTS (CONT.)
FRANCE 5.4%
FR 4,200 Banque Nationale de Paris ............................................ $ 204,128
FR 2,554 Compagnie de Saint Gobain ............................................ 330,319
FR 7,243 ECCO, SA ............................................................. 989,791
FR 170 Labinal, SA .......................................................... 26,585
FR 3,600 (a)Pechiney International, SA ........................................... 92,242
FR 10,446 Societe Nationale Elf Aquitaine, SA .................................. 834,193
FR 2,870 Total, SA ............................................................ 179,291
----------
2,656,549
----------
GREECE 2.1%
GR 11,500 (b)Alpha Credit Bank .................................................... 559,741
GR 6,850 Ergo Bank, SA ........................................................ 291,148
GR 3,450 National Bank of Greece............................................... 167,693
----------
1,018,582
----------
HONG KONG 9.3%
HK 79,000 Cathay Pacific Airways, Ltd. ......................................... 110,729
HK 53,000 Cheung Kong Holdings, Ltd. ........................................... 223,201
HK 300,000 CNT Group, Ltd. ...................................................... 11,820
HK 63,000 Consolidated Electric Power .......................................... 137,947
HK 443,000 CP Pokphand Co. ...................................................... 141,639
US 635,000 (a)Dairy Farm International Holdings, Ltd. .............................. 673,100
HK 88,000 Hang Lung Development Co., Ltd. ...................................... 129,596
HK 8,800 (a)Hang Lung Development Co., Ltd., warrants ............................ 1,160
US 50,000 Hong Kong Land Holdings, Ltd. ........................................ 94,000
US 57,200 Jardine Matheson Holdings, Ltd. ...................................... 454,740
US 202,500 Jardine Strategic Holdings, Ltd. ..................................... 688,500
US 22,500 (a)Jardine Strategic Holdings, Ltd., warrants ........................... 0
HK 464,000 Maanshan Iron & Steel Co. ............................................ 82,118
HK 61,000 New World Development Co., Ltd. ...................................... 158,390
HK 423,000 Oriental Press Group ................................................. 172,129
HK 601,000 Peregrine Investment Holdings ........................................ 632,754
HK 152,500 Shenzhen China Bicycles Co. .......................................... 53,191
HK 1,045,000 Shun Tak Holdings, Ltd. .............................................. 634,478
HK 310,200 Sing Tao Holdings, Ltd. .............................................. 202,365
----------
4,601,857
----------
INDIA .1%
US 7,800 (b)Gujarat Narmada Valley Fertilizer Co., Ltd. .......................... 71,175
----------
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, APRIL 30, 1995
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
SHARES
WARRANTS & VALUE
COUNTRY* RIGHTS FRANKLIN INTERNATIONAL EQUITY FUND (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS, WARRANTS & RIGHTS (CONT.)
INDONESIA
ID 22,500 P.T. Barito Pacific Timber............................................ $ 25,190
----------
ITALY 1.4%
IT 23,300 Banco di Sardegna SpA ................................................ 141,037
IT 22,840 (a)Cartiere Burgo SpA ................................................... 152,909
IT 13,280 (a)Cartiere Burgo SpA, warrants ......................................... 1,791
IT 44,600 Sasib SpA ............................................................ 101,072
IT 35,700 Sirti SpA ............................................................ 256,569
IT 20,000 Unicem SpA ........................................................... 59,815
----------
713,193
----------
MEXICO 2.2%
US 27,000 Consorcio Grupo Dina SA de CV, ADR ................................... 101,250
MX 104,600 Consorcio Grupo Dina SA de CV ........................................ 96,377
MX 17,000 Grupo Financiero Banamex, Class B .................................... 28,970
MX 3,000 Grupo Financiero Banamex, Class C .................................... 5,072
MX 500 Grupo Financiero Banamex, Class L..................................... 837
US 18,000 Telefonos de Mexico, ADR ............................................. 544,500
MX 91,000 Vitro, SA ............................................................ 314,615
----------
1,091,621
----------
NETHERLANDS 11.2%
NL 8,600 ABN-AMRO Holdings, NV................................................. 330,791
NL 2,380 AKZO NOBEL, NV........................................................ 276,013
NL 11,400 DSM, NV............................................................... 958,508
NL 28,231 Intenationale Nederlanden Groep, NV................................... 1,487,852
NL 11,900 Koninklijke Bijenkorf Beheer ......................................... 915,443
NL 1,700 Oce-Van Der Grinten, NV .............................................. 84,337
NL 29,200 Philips Electronics, NV............................................... 1,113,743
NL 2,940 Telegraaf Holdings, CVA .............................................. 358,005
----------
5,524,692
----------
NEW ZEALAND .7%
NZ 247,000 Fletcher Challenge, Ltd. ............................................. 345,324
----------
NORWAY 2.7%
NO 1,100 (a)Elkem, A/S ........................................................... 14,211
NO 60,200 Hafslund Nycomed ..................................................... 1,309,116
----------
1,323,327
----------
PORTUGAL .6%
PT 17,400 Banco Portugues de Investimento, SA .................................. 305,671
----------
</TABLE>

The accompanying notes are an integral part of these statements.

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS, APRIL 30, 1995
(UNAUDITED) (CONT.)
<TABLE>
<CAPTION>
SHARES
WARRANTS & VALUE
COUNTRY* RIGHTS FRANKLIN INTERNATIONAL EQUITY FUND (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS, WARRANTS & RIGHTS (CONT.)
SOUTH KOREA .9%
KR 4,190 Byucksan Corp. ....................................................... $ 75,297
KR 3,540 Daegu Bank Co., Ltd. ................................................. 43,649
KR 436 (a)Daegu Bank Co., Ltd., rights ......................................... 0
KR 2,280 Daehan Synthetic Fiber Co. ........................................... 352,909
---------
471,855
---------
SPAIN 7.0%
ES 15,750 Banco Bilbao Vizcaya, SA ............................................. 424,777
ES 2,500 Banco de Andalucia ................................................... 284,322
ES 2,430 Banco Intercontinental Espanol ....................................... 199,374
ES 1,450 Banco Popular Espanol ................................................ 198,123
ES 60,600 Compania Sevillana de Electricidad ................................... 297,831
ES 6,000 Dragados & Construcciones, SA ........................................ 90,902
ES 131,700 Iberdrola, SA ........................................................ 866,588
ES 80,600 Telefonica de Espana ................................................. 985,402
ES 4,000 Unipapel, SA ......................................................... 110,479
---------
3,457,798
---------
SWEDEN 11.2%
SE 9,800 Autoliv AB ........................................................... 443,830
SE 44,600 Celsius Industrier AB ................................................ 699,897
SE 13,800 Electrolux AB, Class B................................................ 704,770
SE 13,100 Esselte AB ........................................................... 171,312
SE 8,100 Pharmacia AB, Series A ............................................... 153,314
SE 48,100 Pharmacia AB, Series B ............................................... 907,110
SE 17,000 Stadshypotek AB ...................................................... 234,015
SE 12,900 Stora Kopparbergs Bergslags .......................................... 866,570
SE 27,650 Svenska Handelsbanken, Inc., Class A ................................. 352,072
SE 52,400 Volvo AB ............................................................. 984,596
---------
5,517,486
---------
SWITZERLAND 6.1%
CH 180 Baloise Holding, Ltd. ................................................ 389,699
CH 795 BBC Brown Boveri, Ag ................................................. 784,937
CH 740 Bucher Holdings, Ag .................................................. 426,364
CH 600 Ciba-Geigy, Ag ....................................................... 410,650
CH 340 CS Holdings .......................................................... 142,174
CH 200 Kuoni Reisen Holdings Ag-PC .......................................... 323,876
CH 307 (a)Schweiz Rueckversicherungs ........................................... 214,136
CH 600 SMH, Ag............................................................... 306,416
---------
2,998,252
---------
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

<TABLE>
<CAPTION>
SHARES
WARRANTS & VALUE
COUNTRY* RIGHTS FRANKLIN INTERNATIONAL EQUITY FUND (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS, WARRANTS & RIGHTS (CONT.)
TURKEY 1.4%
TR 154,000 Cukurova Elektrik A.S. ............................................... $ 66,956
US 121,200 Tofas Turk Otomobil Fabrikasi ........................................ 606,000
-----------
672,956
-----------
UNITED KINGDOM 13.4%
GB 587,100 Albert Fisher Group, Plc. ............................................ 415,773
GB 91,700 Anglian Group, Plc. .................................................. 239,836
GB 137,400 Argyll Group, Plc. ................................................... 632,477
GB 46,333 British Aerospace, Plc. .............................................. 399,712
GB 469,200 aCordiant, Plc. ....................................................... 702,316
GB 154,800 Govett & Co., Plc. ................................................... 715,063
GB 198,900 Hillsdown Holdings, Plc. ............................................. 589,039
GB 14,462 HSBC Holdings, Plc. .................................................. 170,501
GB 60,400 Kwik Save Group, Plc. ................................................ 572,590
GB 172,900 Meggitt Holdings, Plc. ............................................... 204,538
GB 18,694 National Westminster Bank, Plc. ..................................... 162,627
GB 186,700 News International, Plc. ............................................. 868,429
GB 79,000 aQueens Moat Houses, Plc. ............................................. 0
GB 569,000 Raine, Plc. .......................................................... 274,743
GB 33,600 Standard Chartered, Plc. ............................................ 162,779
GB 21,300 Thames Water, Plc. ................................................... 166,613
GB 91,000 Wace Group, Plc. ..................................................... 328,082
-----------
6,605,118
-----------
TOTAL COMMON STOCKS, WARRANTS & RIGHTS (COST $44,624,037) ...... 44,646,892
-----------
PREFERRED STOCKS
NETHERLANDS
NL 216 ABN-AMRO Holdings, NV, pfd. (Cost $7,457) ............................ 8,197
-----------
TOTAL COMMON STOCKS, WARRANTS & RIGHTS AND PREFERRED STOCKS
(COST $44,631,494)............................................ 44,655,089
-----------
FACE
AMOUNT
------
GOVERNMENT SECURITIES 4.0%
US $2,000,000 U.S. Treasury Notes, 5.125%, 03/31/96 (Cost $1,998,438) .............. 1,978,440
-----------
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

<TABLE>
<CAPTION>
FACE VALUE
COUNTRY* AMOUNT FRANKLIN INTERNATIONAL EQUITY FUND (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CONVERTIBLE BONDS .6%
US $ 250,000 Amer Group, cvt., 6.25%, 06/15/03 .................................... $ 226,875
US 90,000 Banco Nacional de Mexico, cvt., 7.00%, 12/15/99 ...................... 61,200
US 10,000 Jardine Strategic Holdings, Ltd., cvt., 7.50%, 05/07/49 .............. 11,900
-----------
TOTAL CONVERTIBLE BONDS (COST $442,328)......................... 299,975
-----------
TOTAL INVESTMENT BEFORE REPURCHASE AGREEMENT
(COST $47,072,260) ............................................ 46,933,504
-----------
(c,d)RECEIVABLES FROM REPURCHASE AGREEMENTS 2.4%
US 1,212,185 Joint Repurchase Agreement, 5.975%, 05/01/95 (Maturity Value $1,201,480)
(COST $1,200,882)
Collateral: U.S. Treasury Notes, 4.75% - 9.00%, 07/15/96 - 01/31/00 1,200,882
-----------
TOTAL INVESTMENTS (COST $48,273,142) 97.4% ................. 48,134,386
OTHER ASSETS AND LIABILITIES, NET 2.6% ..................... 1,295,878
-----------
NET ASSETS 100.0% .......................................... $49,430,264
===========

At April 30, 1995, the net unrealized depreciation based on the cost of
investments for income tax purposes of $48,273,142 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there was an excess of value over tax cost ......................... $ 6,008,798
Aggregate gross unrealized depreciation for all investments in which
there was an excess of tax cost over value.......................... (6,147,554)
-----------
Net unrealized depreciation.......................................... $ (138,756)
===========
</TABLE>

COUNTRY LEGEND:
AR -Argentina
AU -Australia
BE -Belgium
CA -Canada
CH -Switzerland
ES -Spain
FI -Finland
FR -France

GB -United Kingdom
GR -Greece
HK -Hong Kong
ID -Indonesia
IT -Italy
KR -South Korea
MX -Mexico
NL -Netherlands

NO -Norway
NZ -New Zealand
PT -Portugal
SE -Sweden
TR -Turkey
US -United States of America

* Securities traded in currency of country indicated.
(a) Non-income producing.
(b) See Note 7 regarding Rule 144A securities.
(c) Face amount for repurchase agreements is for the underlying collateral.
(d) See Note 1(h) regarding Joint Repurchase Agreement.

The accompanying notes are an integral part of these financial statements.

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS

STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FRANKLIN FRANKLIN
PACIFIC INTERNATIONAL
GROWTH FUND EQUITY FUND
---------- ----------
<S> <C> <C>
Assets:
Investments in securities:
At identified cost.............................................................. $50,068,917 $ 47,072,260
=========== ============
At value........................................................................ 48,476,342 46,933,504
Receivables from repurchase agreements, at value and cost........................ 3,388,253 1,200,882
Foreign currencies (Cost $126,889 and $382,710, respectively).................... 123,859 380,530
Receivables:

Dividends and interest.......................................................... 378,149 281,927
Capital shares sold............................................................. 39,234 29,586
Investment securities sold...................................................... 3,981,454 829,812
From affiliates................................................................. -- 27,652
Unamortized organization costs (Note 2).......................................... 9,022 9,022
----------- ------------
Total assets................................................................ 56,396,313 49,692,915
----------- ------------
Liabilities:
Payables:
Investment securities purchased................................................. 3,351,983 80,325
Capital shares repurchased...................................................... 290,828 52,276
Distribution fees............................................................... 74,302 77,772
Management fees................................................................. 43,616 --
Shareholder servicing costs..................................................... 3,647 5,057
Accrued expenses and other liabilities .......................................... 35,316 47,221
----------- ------------
Total liabilities........................................................... 3,799,692 262,651
----------- ------------
Net assets, at value.............................................................. $52,596,621 $ 49,430,264
=========== ============
Net assets consist of:

Undistributed net investment income.............................................. $ 205,729 $ 212,556
Unrealized depreciation on investments and translation of assets and liabilities
denominated in foreign currencies................................................ (1,593,784) (143,055)
Net realized gain from investments and foreign currency transactions............. 1,353,565 1,120,794
Capital shares................................................................... 37,802 39,030
Additional paid-in capital....................................................... 52,593,309 48,200,939
----------- ------------
Net assets, at value.............................................................. $52,596,621 $ 49,430,264
=========== ============
Shares outstanding................................................................ 3,780,231 3,902,961
=========== ============
Net asset value per share......................................................... $ 13.91 $ 12.66
=========== ============
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (CONT.)

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
FRANKLIN FRANKLIN
PACIFIC INTERNATIONAL
GROWTH FUND EQUITY FUND
---------- -----------
<S> <C> <C>
Investment income:
Dividends, net of foreign taxes withheld of $59,610 and $42,699, respectively..... $ 655,999 $ 534,466
Interest.......................................................................... 59,016 126,627
----------- -----------
Total income................................................................. 715,015 661,093
----------- -----------
Expenses:
Management fees (Note 6).......................................................... 260,290 253,662
Distribution fees (Note 6)........................................................ 52,844 57,106
Shareholder servicing costs (Note 6).............................................. 25,656 26,910
Registration fees................................................................. 37,850 29,839
Custodian fees.................................................................... 32,232 33,510
Reports to shareholders........................................................... 24,792 22,193
Professional fees................................................................. 9,599 9,329
Amortization of organization cost (Note 2)........................................ 3,246 3,246
Other............................................................................. 5,718 8,284
----------- -----------
Total expenses............................................................... 452,227 444,079
----------- -----------
Net investment income...................................................... 262,788 217,014
----------- -----------
Realized and unrealized gain (loss) from investments and foreign currency:
Net realized gain from:
Investments...................................................................... 1,353,389 1,097,746
Foreign currency transactions.................................................... 2,128 23,048
Net unrealized depreciation on:
Investments...................................................................... (5,963,709) (3,669,190)
Translation of assets and liabilities denominated in foreign currencies.......... (3,336) (13,596)
----------- -----------
Net realized and unrealized loss on investments and foreign currency............... (4,611,528) (2,561,992)
----------- -----------
Net decrease in net assets resulting from operations............................... $(4,348,740) $(2,344,978)
=========== ===========
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (CONT.)

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
AND THE YEAR ENDED OCTOBER 31, 1994

<TABLE>
<CAPTION>
FRANKLIN PACIFIC FRANKLIN INTERNATIONAL
GROWTH FUND EQUITY FUND
-------------------------------- --------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994 APRIL 30, 1995 OCTOBER 31, 1994
-------------- ---------------- -------------- ----------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income............................. $ 262,788 $ 741,217 $ 217,014 $ 876,352
Net realized gain from investments and foreign
currency transactions............................. 1,355,517 991,968 1,120,794 2,589,842
Net unrealized appreciation (depreciation) on
investments and translation of assets and
liabilities denominated in foreign currencies..... (5,967,045) 486,055 (3,682,786) 904,404
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations......................... (4,348,740) 2,219,240 (2,344,978) 4,370,598
Distributions to shareholders from:
Undistributed net investment income............... (237,907) (590,947) (229,321) (717,638)
Net realized capital gains........................ (1,040,433) (126,733) (2,401,292) ---
Increase (decrease) in net assets from capital share
transactions (Note 3)............................. (17,108) 34,120,244 (3,448,234) 34,984,050
----------- ----------- ----------- -----------
Net increase (decrease) in net assets........ (5,644,188) 35,621,804 (8,423,825) 38,637,010
Net assets:
Beginning of period............................... 58,240,809 22,619,005 57,854,089 19,217,079
----------- ----------- ----------- -----------
End of period..................................... $52,596,621 $58,240,809 $49,430,264 $57,854,089
=========== =========== =========== ===========
Undistributed net investment income included in net
assets:
Beginning of period.............................. $ 231,385 $ 81,099 $ 239,703 $ 80,945
=========== =========== =========== ===========
End of period.................................... $ 205,729 $ 231,385 $ 212,556 $ 239,703
=========== =========== =========== ===========
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. SIGNIFICANT ACCOUNTING POLICIES

Franklin International Trust (the Trust) is an open-end management investment
company (mutual fund) registered under the Investment Company Act of 1940 as
amended. The Trust currently has two separate diversified Funds (the Funds)
consisting of the Franklin Pacific Growth Fund (the Pacific Fund) and the
Franklin International Equity Fund (the International Fund). Each of the Funds
issues a separate series of shares and maintains a totally separate investment
portfolio.

The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.

a. SECURITIES VALUATIONS: Portfolio securities listed on a securities exchange
or on the NASDAQ National Market System for which market quotations are readily
available are valued at the last quoted sale price of the day or, if there is no
such reported sale, within the range of the most recent quoted bid and ask
prices. Other securities for which market quotations are readily available are
valued at current market values, obtained from pricing services, which are based
on a variety of factors, including recent trades, institutional size trading in
similar types of securities (considering yield, risk and maturity) and/or
developments related to specific securities. Portfolio securities which are
traded both in the over-the-counter market and on a securities exchange are
valued according to the broadest and most representative market as determined by
the Manager. Other securities for which market quotations are not available, if
any, are valued in accordance with procedures established by the Board of
Trustees.

The value of a foreign security is determined as of the close of trading on the
foreign exchange on which it is traded or as of the close of trading on the New
York Stock Exchange, if that is earlier, and that value is then converted into
its U.S. dollar equivalent at the foreign exchange rate in effect at noon, New
York time, on the day the value of the foreign security is determined. If no
sale is reported at that time, the mean between the current bid and asked price
is used. Occasionally, events which affect the values of foreign securities and
foreign exchange rates may occur between the times at which they are determined
and the close of the exchange and will, therefore, not be reflected in the
computation of the Fund's net asset value. If events materially affect the value
of these foreign securities occur during such period, then these securities will
be valued at fair value as determined by management and approved in good faith
by the Board of Trustees.

b. INCOME TAXES: The Trust intends to continue to qualify for the tax treatment
applicable to regulated investment companies under the Internal Revenue Code and
to make the requisite distributions to its shareholders which will be sufficient
to relieve it from income and excise taxes. Therefore, no income tax provision
is required. Each Fund is treated as a separate entity in the determination of
compliance with the Internal Revenue Code.

c. SECURITY TRANSACTIONS: Security transactions are accounted for on the date
the securities are purchased or sold (trade date). Realized gains and losses on
security transactions are determined on the basis of specific identification for
both financial statement and income tax purposes.

d. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS: Dividend income and
distributions to shareholders are recorded on the ex-dividend date. Interest
income and estimated expenses are accrued daily. Bond discount, if any, is
amortized as required by the Internal Revenue Code.

Net realized capital gains differ for financial statement and tax purposes
primarily due to differing treatment of wash sale transactions.

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions.

e. EXPENSE ALLOCATION: Common expenses incurred by the Trust are allocated among
the Funds based on the ratio of net assets of each Fund to the combined net
assets. In all other respects, expenses are charged to each Fund as incurred on
a specific identification basis.

f. FOREIGN CURRENCY TRANSLATION: The accounting records of the Trust are
maintained in U.S. dollars. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollars at the rate of exchange of such
currencies

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)

1. SIGNIFICANT ACCOUNTING POLICIES (CONT.)

f. FOREIGN CURRENCY TRANSLATION: (CONT.)

against U.S. dollars on the date of the valuation. Purchases and sales of
securities, income and expenses are translated at the rate of exchange quoted on
the respective date that such transactions are recorded. Differences between
income and expense amounts recorded and collected or paid are recognized when
reported by the custodian bank.

The Trust does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from 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 and
maturities of short-term securities, sales of foreign currencies, currency gains
or losses realized between the trade date and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Trust'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 period,
resulting from changes in exchange rates.

g. FORWARD FOREIGN CURRENCY CONTRACTS: A forward currency contract, which is
individually negotiated and privately traded by currency traders and their
customers, is a commitment to purchase or sell a specific currency for an
agreed-upon price at a future date.

The Trust may enter into forward contracts with the objective of minimizing
the risk to the Trust from adverse changes in the relationship between
currencies or to enhance income. The Trust may also enter into a forward
contract in relation to a security denominated in a foreign currency or
when it anticipates receipt in a foreign currency of dividends or
interest payments in order to "lock in" the U.S. dollar price of a security or
the U.S. dollar equivalent of such dividend or interest payments.

The Trust segregates with its custodian bank, sufficient cash, cash
equivalents or readily marketable debt securities as collateral for
commitments created by open forward contracts. The Trust could be exposed to
risk if counterparties to the contracts are unable to meet the terms of their
contracts or if the value of the foreign currency changes unfavorably.

Any gain or loss realized from a forward currency contract is recorded as
a realized gain or loss from investments. At April 30, 1995, the Trust
had no outstanding foreign currency forward contracts.

h. REPURCHASE AGREEMENTS: The Trust may enter into a Joint Repurchase Agreement
whereby its uninvested cash balances are deposited into a joint cash account to
be used to invest in one or more repurchase agreements with government
securities dealers recognized by the Federal Reserve Board and/or member banks
of the Federal Reserve System. The value and face amount of the Joint Repurchase
Agreement has been allocated to the Funds based on their pro rata interest.

In a repurchase agreement, the Trust purchases a U.S. government security from a
dealer or bank subject to an agreement to resell it at a mutually agreed upon
price and date. Such a transaction is accounted for as a loan by the Trust to
the seller, collateralized by the underlying security. The transaction requires
the initial collateralization of the seller's obligation by U.S. government
securities with market value, including accrued interest, of at least 102% of
the dollar amount invested by the Trust, with the value of the underlying
security marked to market daily to maintain coverage of at least 100%. The
collateral is delivered to the Trust's custodian and held until resold to the
dealer or bank. At April 30, 1995, all outstanding joint repurchase agreements
held by the Trust had been entered into on April 28, 1995.

2. UNAMORTIZED ORGANIZATION COSTS

The organization costs of each Fund are amortized on a straight-line basis over
a period of five years from September 20, 1991 (the effective date of
registration under the Securities Act of 1933). In the event Franklin Resources,
Inc. (which was the sole shareholder prior to September 20, 1991) redeems its
shares within the five-year period, the pro-rata share of the then-unamortized
deferred organization costs will be deducted from the redemption price paid to
Franklin Resources, Inc.

<PAGE>

FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)

2. UNAMORTIZED ORGANIZATION COSTS (cont.)

New investors purchasing shares of the Funds subsequent to that date bear such
costs during the amortization period only as such charges are accrued daily
against investment income.

3. TRUST SHARES

At April 30, 1995, there were an unlimited number of $.01 par value shares of
beneficial interest authorized. Transactions in each of the Fund's shares for
the six months ended April 30, 1995 and the year ended October 31, 1994 were as
follows:

<TABLE>
<CAPTION>
FRANKLIN PACIFIC FRANKLIN INTERNATIONAL
GROWTH FUND EQUITY FUND
--------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Six months ended April 30, 1995 -
Shares sold .................................. 337,466 $ 4,635,460 348,049 $ 4,384,690
Shares issued in reinvestment of distributions 80,749 1,115,147 185,562 2,269,427
Shares redeemed .............................. (381,614) (5,212,022) (337,220) (4,178,906)
Changes from exercise of exchange privilege:
Shares sold ................................. 1,560,697 21,323,445 592,617 7,405,412
Shares redeemed ............................. (1,598,774) (21,879,138) (1,068,099) (13,328,857)
---------- ------------ ---------- ------------
Net decrease ................................. (1,476) $ (17,108) (279,091) $ (3,448,234)
========== ============ ========== ============
Year ended October 31, 1994 -
Shares sold .................................. 1,264,909 $ 19,532,648 918,242 $ 12,289,792
Shares issued in reinvestment of distributions 40,119 608,594 46,611 599,058
Shares redeemed .............................. (359,599) (5,536,957) (335,945) (4,490,047)
Changes from exercise of exchange privilege:
Shares sold ................................. 6,124,921 93,795,170 6,103,434 81,761,759
Shares redeemed ............................. (4,855,164) (74,279,211) (4,115,714) (55,176,512)
---------- ------------ ---------- ------------
Net increase ................................. 2,215,186 $ 34,120,244 2,616,628 $ 34,984,050
========== ============ ========== ============
</TABLE>

4. DISTRIBUTIONS AND CAPITAL LOSS CARRYOVERS

At October 31, 1994, for tax purposes, the Funds had accumulated net realized
gains as follows:

<TABLE>
<CAPTION>
FRANKLIN FRANKLIN
PACIFIC INTERNATIONAL
GROWTH FUND EQUITY FUND
----------- -------------
<S> <C> <C>
Accumulated net realized gains........................ $1,040,433 $2,401,292
========== ==========
</TABLE>

For tax purposes, the aggregate cost of securities is higher (and unrealized
depreciation is higher) than for financial reporting purposes at April 30, 1995
by $1,952 in the Pacific Fund.

5. PURCHASES AND SALES OF SECURITIES

Aggregate purchases and sales of securities (excluding purchases and sales of
short-term securities) for the six months ended April 30, 1995 were as follows:

<TABLE>
<CAPTION>
FRANKLIN FRANKLIN
PACIFIC INTERNATIONAL
GROWTH FUND EQUITY FUND
----------- -------------
<S> <C> <C>
Purchases............................................. $6,895,036 $2,275,176
========== ==========
Sales................................................. $8,251,075 $7,016,790
========== ==========
</TABLE>

<PAGE>
FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)

6. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

Franklin Advisers, Inc. ("Manager"), under the terms of a management agreement,
provides investment advice, office space and facilities to each Fund and
receives fees computed monthly on the average daily net assets of each Fund at
an annualized rate of 1% of the first $100 million of net assets; 9/10 of 1% of
net assets in excess of $100 million up to and including $250 million; 8/10 of
1% of net assets in excess of $250 million up to and including $500 million; and
3/4 of 1% of net assets in excess of $500 million. Under a subadvisory
agreement, Templeton Investment Counsel, Inc. ("TICI" or the "Subadviser"), an
indirect subsidiary of Templeton Worldwide, Inc., which is a direct,
wholly-owned subsidiary of Franklin Resources, Inc. receives from the Manager a
fee equal to an annual rate of 1/2 of 1% of the value of each Fund's net assets
up to and including $100 million; 2/5 of 1% of net assets in excess of $100
million up to and including $250 million; 3/10 of 1% of net assets in excess of
$250 million up to and including $500 million; and 1/4 of 1% of net assets in
excess of $500 million. The terms of these agreements provide that aggregate
annual expenses of the Funds be limited to the extent necessary to comply with
the limitations set forth in the laws, regulations, and administrative
interpretations of the states in which the Funds' shares are registered. For the
six months ended April 30, 1995, the Funds' expenses did not exceed these
limitations.

In its capacity as underwriter for the shares of the Trust, Franklin/Templeton
Distributors, Inc. receives commissions on sales of the Trust's shares.
Commissions received by Franklin/Templeton Distributors, Inc. and the amounts
which were subsequently paid to other dealers for the six months ended April 30,
1995 were as follows:

<TABLE>
<CAPTION>
FRANKLIN FRANKLIN
PACIFIC INTERNATIONAL
GROWTH FUND EQUITY FUND
----------- --------------
<S> <C> <C>
Total commissions received............................ $142,517 $129,925
======== ========
Paid to other dealers................................. $126,609 $115,438
======== ========
</TABLE>

Commissions are deducted from the gross proceeds received from the sale of the
shares of the Trust, and as such are not expenses of the Funds.

Under the terms of a distribution agreement pursuant to Rule 12b-1 of the
Investment Company Act of 1940, the Funds will reimburse Franklin/Templeton
Distributors, Inc., in an amount up to 0.25% per annum of the Funds' average
daily net assets for costs incurred in the promotion, offering and marketing of
the Funds' shares. Costs incurred by the Pacific Fund and International Fund
under the agreement aggregated $52,844 and $57,106 respectively, for the six
months ended April 30, 1995.

Pursuant to a shareholder service agreement with Franklin/Templeton Investor
Services, Inc., the Funds pay costs on a per shareholder account basis. Such
costs incurred for the six months ended April 30, 1995 aggregated $52,566, of
which $48,583 was paid to Franklin/Templeton Investor Services, Inc.

Certain officers and trustees of the Trust are also officers and/or directors of
Franklin/Templeton Distributors, Inc., Franklin Advisers, Inc., Templeton
Worldwide, Inc., Templeton Investment Counsel, Inc. and Franklin/Templeton
Investor Services, Inc., all wholly-owned subsidiaries of Franklin Resources,
Inc.

7. RULE 144A SECURITIES

Rule 144A provides a non-exclusive safe harbor exemption from the registration
requirements of the Securities Act of 1933 for specified resales of restricted
securities to qualified institutional investors. The Funds value these
securities as disclosed in Note 1. See the accompanying Statement of Investments
and Net Assets for specific information on such securities.

<PAGE>
FRANKLIN INTERNATIONAL TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONT.)

7. RULE 144A SECURITIES (cont.)
At April 30, 1995, 144A securities were held as follows:

<TABLE>
<CAPTION>
FRANKLIN FRANKLIN
PACIFIC INTERNATIONAL
GROWTH FUND EQUITY FUND
----------- -------------
<S> <C> <C>
Value ................................................ $308,000 $630,916
======== ========
Ratio of value to net assets.......................... .59% 1.28%
======== ========
</TABLE>

8. FINANCIAL HIGHLIGHTS

Selected data for each share of beneficial interest outstanding throughout each
period, by Fund, are as follows:

<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE
---------------------------------------------------------------------------------------------------------
NET ASSET NET REALIZED DISTRIBUTIONS
YEAR VALUE NET & UNREALIZED TOTAL FROM FROM NET DISTRIBUTIONS
ENDED BEGINNING INVESTMENT GAIN(LOSS) INVESTMENT INVESTMENT FROM
OCT 31 OF YEAR INCOME ON SECURITIES OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FRANKLIN PACIFIC GROWTH FUND
1991+ $10.01 $.06 $ -- $ .060 $ -- $ --
1992 10.07 .14 .836 .976 (.146) --
1993 10.90 .19 3.825 4.015 (.193) (.282)
1994 14.44 .21 1.008 1.218 (.198) (.060)
1995+++ 15.40 .06 (1.217) (1.157) (.062) (.271)
FRANKLIN INTERNATIONAL EQUITY FUND
1991+ 10.01 .06 -- .060 -- --
1992 10.07 .19 (.038) .152 (.202) --
1993 10.02 .42 2.253 2.673 (.413) --
1994 12.28 .23 1.540 1.770 (.220) --
1995+++ 13.83 .05 (.577) (.527) (.055) (.588)
</TABLE>

<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE RATIOS/SUPPLEMENTAL DATA
------------------------------- ----------------------------------------------------------------
NET ASSET NET ASSETS RATIO OF INVESTMENT
YEAR VALUE AT END EXPENSES INCOME PORTFOLIO
ENDED TOTAL AT END TOTAL OF YEAR TO AVERAGE TO AVERAGE TURNOVER
OCT 31 DISTRIBUTIONS OF YEAR RETURN++ (IN 000'S) NET ASSETS NET ASSETS RATE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FRANKLIN PACIFIC GROWTH FUND
1991+ $ -- $10.07 .60% $ 1,165 --%** 5.01%* --%
1992 (.146) 10.90 9.77 5,724 .29** 1.80 62.96
1993 (.475) 14.44 38.46 22,619 .50** 2.03 47.52
1994 (.258) 15.40 8.46 58,241 1.22** 1.54 9.16
1995+++ (.333) 13.91 (7.50) 52,597 1.74* 1.01* 13.72
FRANKLIN INTERNATIONAL EQUITY FUND
1991+ -- 10.07 .60 1,286 --** 4.92* --
1992 (.202) 10.02 1.46 6,944 .29** 2.36 48.78
1993 (.413) 12.28 27.40 19,217 .50** 4.22 52.99
1994 (.220) 13.83 14.56 57,854 1.22** 1.99 21.80
1995+++ (.643) 12.66 (3.65) 49,430 1.75* .85* 4.63
</TABLE>

*Annualized.

+For the period September 20, 1991 (effective date of registration) to October
31, 1991.

++Total return measures the changes in value of an investment over the periods
indicated. It does not include the maximum initial sales charge and assumes
reinvestment of dividends and capital gains, if any, at net asset value and is
not annualized.

+++For the six months ended April 30, 1995.

**During the periods indicated below, Franklin Advisers, Inc., the investment
manager, agreed to waive in advance a portion of its management fees. Had such
action not been taken, ratios of expenses to average net assets would have been
as follows:

<TABLE>
<CAPTION>
RATIO OF
EXPENSES
TO AVERAGE
NET ASSETS
----------
<S> <C>
FRANKLIN PACIFIC GROWTH FUND
1991+............................. 2.50%*
1992.............................. 2.50
1993.............................. 2.31
1994 ............................. 1.72
FRANKLIN INTERNATIONAL EQUITY FUND
1991+............................. 2.50%*
1992.............................. 2.50
1993.............................. 2.27
1994.............................. 1.76
</TABLE>

<PAGE>

APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)

GRAPHIC MATERIAL (1)

This chart shows in pie format the fund's securities breakdown by geographic
distribution as a percentage of total net assets.
<TABLE>
<CAPTION>
Geographic Distribution on April 30, 1995
<S> <C>
Japan 22.7%
United States 4.2%
Thailand 7.7%
Singapore 5.4%
Philippines 3.7%
Malaysia 4.1%
Hong Kong 24.5%
Indonesia 3.9%
Australia 15.3%
Short-Term & Other 8.5%
</TABLE>

GRAPHIC MATERIAL (2)

This chart shows in pie format the fund's securities breakdown by geographic
distribution as a percentage of total net assets.
<TABLE>
<CAPTION>
Geographic Distribution on April 30, 1995
<S> <C>
United Kingdom 13.4%
Mexico 2.2%
Greece 2.1%
France 5.4%
Finland 3.4%
Switzerland 6.1%
Sweden 11.2%
Norway 2.7%
Canada 2.2%
Netherlands 11.2%
Spain 7.0%
Australia/New Zealand 4.4%
Bermuda 2.3%
Hong Kong 9.3%
Short-Term & Other 17.1%
</TABLE>