<PAGE>
[MAP ART APPEARS HERE]
- ----------
Templeton
Developing
Markets
Trust
- ----------
Annual Report
December 31, 1994
<PAGE>
Dr. Mobius has been living overseas since earning his Ph.D. in economics and
political science at Massachusetts Institute of Technology in 1964. During his
extensive travels, he has acquired a thorough knowledge of the business
practices and customs that are unique to developing nations. Together with his
team of Templeton analysts, Dr. Mobius currently oversees more than $6 billion
in emerging markets investments for the Templeton Group of Funds.
[PHOTO OF J. MARK MOBIUS, PH.D. APPEARS HERE]
J. MARK MOBIUS, PH.D.
PRESIDENT
TEMPLETON DEVELOPING MARKETS TRUST
<PAGE>
- ---------
THE FOLLOWING
LETTER WAS
WRITTEN BY
DR. MOBIUS AFTER
A RECENT VISIT
TO THE CZECH
REPUBLIC.
- ---------
A performance summary
can be found on page 8.
Prague, Czech Republic
Dear Shareholder:
I've just completed another visit to this exciting developing market and am
impressed by how far the Czech Republic has progressed since its creation on
the first day of January 1993. But it's not the past that really excites me
- -- it's the future.
We at Templeton didn't start buying Czech equities when the Prague Stock
Exchange (PSE) opened in June 1993. But now that it has a track record, we
expect to gradually step up our investments here as new bargains present
themselves. Many factors should enlarge this market's equity base in the near
term. Gross Domestic Product (GDP) growth, falling inflation, low
unemployment, a highly skilled but low-cost labor market, and a strategic
location near Western European export markets, combine to provide unique
opportunities for investors.
How can I say this when there is still considerable uncertainty about the
economic prospects for Eastern Europe overall? First, there is no denying the
commitment of Prime Minister Vaclav Klaus' government to build a free-market
economy and to become a key trading partner of the Organization of Economic
Cooperation and Development (OECD) countries. Second, the Czechs have not
followed the lead of nearby major foreign investment targets Poland
and Hungary in re-electing former Communists because bringing back the "old
guard" has generally posed major political obstacles to continued
privatization and capital market development.
In fact, the Czechs have a self-generated mass privatization program that the
World Bank and many other expert observers consider a model for other
transition economies. In its "first wave," ending in December 1992, $10.7
billion worth of formerly state-owned enterprises were sold off. The "second
wave," now winding up, should dispose of about another $5 billion in assets.
That means a transfer of about 80% of the economy into private hands in only
two years -- a rate that is remarkable in the former Communist world.
<PAGE>
[MAP ART APPEARS HERE]
Even more amazing is the fact that as recently as 1989, the former
Czechoslovakia had the largest state sector of any Warsaw Pact country. Ninety-
seven percent of its economy was controlled by government central planners --
more than in the Soviet Union itself! Mere ownership transfer is not necessarily
the same as true privatization, of course, and just selling off old Communist
albatrosses without proper restructuring doesn't necessarily spell good news to
foreign investors. But the deeper you look at the Czech program, the better it
seems.
Czechoslovakia was the wealthiest state to emerge from the Austro-Hungarian
Empire after World War I. Its potential was stifled, however, by the Soviets'
near-total nationalization of the economy in the late 1940s. Despite a well-
educated, highly skilled work force, Czechoslovakian annual economic growth was
more than 30 percent below the OECD average by the 1980s. And despite the
national consensus to rejoin the West following the November 1989 "Velvet
Revolution," breaking away from a collapsing communist economic union was not
easy. GDP shrank in 1990, 1991, and 1992, and inflation ran high.
However, the national commitment to building a free market system never wavered.
The political leaders were determined to move state assets back into private
hands as fast as possible, in most cases, even before the restructuring of
state-owned enterprises. They decided that in all but the highest-profile cases,
market forces -- not government bureaucrats -- should decide how the enterprises
should be overhauled, and that revenue maximization was in general not as high a
priority as efficiency enhancement and reductions
2
<PAGE>
in the drain on the budget. Privatization takes many forms around the world,
but more than a few analysts have seen the wisdom in the Czech approach.
May 1992 saw the launch of the first wave of mass privatization, with 1,491
companies targeted to be sold immediately. All citizens 18 years of age and
older could participate in this unprecedented auction by buying a 1,000 "point"
voucher book for a Koruna 1,000 ($35) fee. That covered the government's
administrative expenses in running the program, and was equal to about the
average weekly wage rate.
The government made no attempt to set advance prices for the enterprises. This
was done purely through market forces, during five rounds of bidding held during
the following 14 months. Out of an eligible population of 10.5 million, 8.5
million people took part, creating an abundant base of public shareholders. Most
people's "points" (70% by some estimates) were voluntarily pooled into new
Investment Privatization Funds (IPFs) set up primarily by local financial
institutions rather than converted directly into shares. Prior to the launch of
the auction program in early 1992, I was invited to a dinner honoring Prime
Minister Klaus at the boardroom of a prominent Wall Street bank. The urbane and
loquacious bankers did not hide their skepticism about the Czech government's
ability to carry out such a complex and massive program. However, Klaus was
adamant and stated his determination to carry out his program since he was
convinced it offered the most equitable distribution method.
These voucher funds quickly began to operate essentially like mutual funds or
unit trusts in the West, with far greater buying power than that of individual
small investors. After April 1992, the government placed restrictions against
owning more than 20% of the shares of any one enterprise, or having any one
enterprise take up more than 10% of the portfolios. Prices were set through a
3
<PAGE>
laissez faire five-round bidding process over eight months in 1992, during which
time an active secondary market emerged. Though the "velvet divorce" that would
separate the Czech and Slovak Republics on January 1, 1993, posed certain
political complications for a while, many crucial foundations for sound capital
market development had been set by this time. When it comes to creating supply
for market, and building a large class of shareholders whose actions could
improve corporate governance and performance, the Czechs appear to have done
more than any other Central or Eastern European country.
When the Prague Stock Exchange opened for trading in June 1993, about 20 large
companies were ready for listing. The largest were CEZ, the state power utility
in which the state retained majority ownership, the major banks and the largest
insurance company. Until that time, foreigners had relatively few direct ways of
buying into the privatization program, and it wasn't until August 1993 that they
were able to buy on the PSE. Many jumped at the chance, attracted perhaps by the
fact that the nearby Warsaw Stock Exchange in Poland was in the process of
becoming the world's best performer for the year.
The inflow of foreign funds drove the Prague market capitalization up to $15
billion by the end of 1993, reaching $25 billion by March 1994, when it was
affected by the worldwide correction in securities markets. Prior to this
correction, the Price/Earnings ratios of the largest companies had hit 22 on
average, and bargains were becoming scarce. For the time being, it seems to have
settled in at about $12 billion.
Stock market growth seems likely, as 861 companies are scheduled to be sold off
during the current second wave of privatizations. Some, such as SPT Telecom (the
state-owned telephone company), the water utilities, the gas utility, and some
breweries, pharmaceutical houses and refineries, may choose to list on the PSE.
The government may also use the local market to gradually dilute its holding in
CEZ, which has earned a strong enough credit rating to
4
<PAGE>
Templeton Developing Markets Trust
Geographic Breakdown on 12/31/94
Based on Total Net Assets
[PIE CHART APEARS HERE SHOWING GEOGRAPHIC BREAKDOWN OF THE FUND]
<TABLE>
<CAPTION>
Description Amount
----------------- ------------
<S> <C>
Europe 15.3%
Mid-East/Africa 1.0
Asia 30.2
Latin America 17.5
Short-Term & Other 36.0
</TABLE>
Dr. Mobius travels worldwide,
seeking investment opportunities
in developing nations. On December 31,
1994, the Fund contained 347
securities from 31 different
countries.
enable it to tap the Eurobond markets. While many political decisions still
depend on the details of the privatization of SPT Telecom this could provide
much new capital when shares are offered to international buyers. The large
banks may choose to launch capital increases on the market, and many more
companies may soon be able to meet one of the PSE's key listing requirements --
having three years of audited financial statements.
Rapid development of the Registration Place System, an over-the-counter market
for unlisted securities, has been especially helpful in facilitating trades by
small shareholders. This nationwide electronic network has generally seen larger
daily trading volume than the PSE. Unlike Poland and Hungary, if you look only
at listed equities, you see just a small part of true market capitalization.
Of course in a situation as new as this not everything is perfect. Regulation
and corporate information are still not fully developed, and many of the
privatized enterprises have not yet received the capitalization they need. But
GDP seems likely to grow by up to five percent this year. And with close access
to a reviving German economy and an Austria that may soon join the European
Union -- to say nothing of the overall benefits that will come if the Czech
Republic and other countries in the region are allowed into the European
Union -- things look good. We expect the outlook for Czech companies to improve
as the decade goes on, and look forward to helping our shareholders take
advantage of any investment opportunities which may arise in this area.
Sincerely,
/s/ J. Mark Mobius Ph.D.
J. Mark Mobius Ph.D.
President
Templeton Developing Markets Trust
5
<PAGE>
- ----------
Management
Discussion
- ----------
Your Fund's Objective:
The Templeton Developing
Markets Trust seeks
long-term capital appreciation
by investing in securities of
issuers of countries having
developing markets.
February 15, 1995
Dear Shareholder:
The year ended December 31, 1994 was a disappointing one for the Templeton
Developing Markets Trust and for many other emerging markets investments
around the world. During this period, your Fund posted a total return of
- -8.64% as shown in the Performance Summary on page 8. However, we have always
maintained a long-term perspective in managing the Fund, and we urge
shareholders to view their investments in the same manner. As you can see in
the Performance Summary, the Fund's total return for the three-year period
ended December 31, 1994 was more than 44%.
During 1993, stock prices in emerging markets were bid up to spectacularly
high levels as overly optimistic investors poured money into these relatively
illiquid markets. In the first half of 1994, corrections in these markets
reinforced our previous research findings that the valuations in many of them
were too high. As more and more investors bought shares of the Fund, it
became increasingly difficult to find enough
bargain stocks to invest all of the cash available to us. This, combined with
our determination not to chase already high prices, resulted in the Fund
acquiring relatively high levels of cash. By
June 30, 1994, the Fund's liquid assets were approximately 42% of total net
assets. Continued corrections in the
second half of 1994 provided the Fund with good opportunities to use this
cash to buy securities at bargain prices once the market had dropped.
TOP 10 HOLDINGS ON 12/31/94
Based on Total Net Assets
<TABLE>
<CAPTION>
Company
Industry % of Total Net Assets
- -------------------------------------------------------
<S> <C>
Eletrobras-Centrais Eletricas,
Brasileiras SA, B, pfd.,
Utilities-Electrical & Gas 2.3%
- -------------------------------------------------------
Telefonos de Mexico SA, ADR, L,
Telecommunications 2.1%
- -------------------------------------------------------
Cheung Kong Hldgs Ltd,
Real Estate 2.0%
- -------------------------------------------------------
Telebras-Telecomunicacoes
Brasileiras, Telecommunications 1.8%
- -------------------------------------------------------
HSBC Holdings PLC, Banking 1.8%
- -------------------------------------------------------
Philippine Long Distance
Telephone Co,
Telecommunications 1.6%
- -------------------------------------------------------
Petrobras-Petroleo Brasileiro
SA, pfd., Energy Sources 1.6%
- -------------------------------------------------------
Banco Bilbao Vizcaya SA,
Banking 1.6%
- -------------------------------------------------------
Banco Comercial Portugues SA,
Banking 1.5%
- -------------------------------------------------------
Bankinter SA, Banking 1.4%
- -------------------------------------------------------
</TABLE>
For a detailed listing of portfolio holdings, see page 11 of this report.
6
<PAGE>
Templeton Developing Markets Trust
Asset Allocation of 12/31/94
Based on total net assets
[PIE CHART APPEARS HERE SHOWING ASSET ALLOCATION OF THE FUND]
<TABLE>
<CAPTION>
Description Amount
----------------- ------------
<S> <C>
Equity 64%
Short Term Obligations &
Other Net Assets 36
</TABLE>
By December 31, 1994, as you can see in the chart to the left, only 36% of the
Fund's assets were in cash and other liquid instruments, despite the growth in
total assets of the Fund during the year from approximately US $1.4 billion to
approximately US $2.0 billion.
As of December 31, 1994, the Fund's investments were allocated across 31
different countries, with none accounting for more than 13% of total net assets.
The largest portion was in Asia (30.2%), followed by Latin America (17.5%),
Europe (15.3%), and the Mid-East/Africa (1%). The devaluation of the Mexican
Peso in December was expected and came as no surprise. In our experience, equity
prices tend to adjust to currency fluctuations over time and we viewed the
selling which followed this devaluation as an opportunity to purchase bargain
stocks. In addition to buying more shares in Mexican companies, we purchased
other Latin American shares which experienced declines associated with the
peso's devaluation. New markets in which the Fund invested during the year were
Bolivia, the Czech Republic, Israel, Poland and South Africa.
TOP TEN COUNTRIES
REPRESENTED IN THE
TRUST ON 12/31/94
Based on Total Net Assets
<TABLE>
<CAPTION>
Country % of Total Net Assets
- ----------------------------------------------
<S> <C>
Hong Kong 12.8%
- ----------------------------------------------
Brazil 11.2%
- ----------------------------------------------
Portugal 4.8%
- ----------------------------------------------
Turkey 4.4%
- ----------------------------------------------
Mexico 3.9%
- ----------------------------------------------
Spain 3.7%
- ----------------------------------------------
Greece 3.7%
- ----------------------------------------------
Philippines 3.6%
- ----------------------------------------------
Italy 2.5%
- ----------------------------------------------
Malaysia 2.4%
- ----------------------------------------------
</TABLE>
Looking forward, we remain optimistic about the prospects for emerging market
economies despite their recent weakness, and believe that they should continue
to grow faster than mature economies. Once again, we would like to emphasize our
commitment to the Templeton strategy of long-term value investing. Adhering to
this strategy means that we must look beyond the short term and focus on the
future, confident that we have made every effort to invest in companies which
will participate in the emerging markets' growth during the next decade.
It should be remembered, of course, that investing in emerging markets involves
special considerations which may include risks related to market and currency
volatility, adverse social and political developments, and the relatively small
size and lesser liquidity of these markets. These special risks and other
considerations are discussed in the Fund's prospectus.
7
<PAGE>
- -----------
Performance
Summary
- -----------
The Templeton Developing Markets Trust reported a total return of -8.64% for the
one-year period ended December 31, 1994. Total return measures the change in
value of an investment, assuming reinvestment of dividends and capital gains
distributions, and does not include the maximum initial 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 delivered a cumulative total return of
over 44% since its inception on October 17, 1991.
During the reporting period, the Fund's share price, as measured by net asset
value, fell $1.85 per share from $15.27 on December 31, 1993 to $13.42 on
December 31, 1994. Shareholders received 12 cents ($0.12) per share in income
distributions, 17 cents ($0.17) in long-term capital gains and 25.5 cents
($0.255) in short-term capital gains during the period. Distributions will vary,
however, depending on income earned by the Trust and any profits realized from
the sale of securities in the portfolio. Past performance is not predictive of
future results.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------
TEMPLETON DEVELOPING
MARKETS TRUST
Periods ended December 31, 1994
<TABLE>
<CAPTION>
Since
Inception
1-Year 3-Year (10/17/91)
<S> <C> <C> <C>
Average Annual
Total Return* -13.83% 10.71% 10.10%
Cumulative
Total Return** -8.64% 43.97% 44.48%
</TABLE>
* Average annual total return represents the average annual change in value of
an investment and reflects the deduction of the current maximum 5.75% initial
sales charge.
** Cumulative total return represents the change in value of an investment over
the specified periods and does not include the current maximum 5.75% initial
sales charge.
All total return calculations reflect the deduction of a proportional share of
Fund expenses on an annual basis and assume that all dividends and capital gains
distributions were reinvested when paid. From October 17, 1991 to December 31,
1992, expense limitations increased the fund's total return.
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.
- ---------------------------------------------------------
8
<PAGE>
The graph below compares the Fund's performance with that of the broad-based
Morgan Stanley Capital International (MSCI) World Index. The index contains
approximately 1,520 companies, representing the stock markets of 22 countries
including the USA, Europe, Canada, Australia, New Zealand and Asia. The index
differs from the Fund in that it includes stocks from some developed countries,
such as the United States, where the Fund is not allowed to invest. The graph
also compares the Fund's performance with that of the more narrow International
Finance Corporation's (IFC) Investable Composite Index. The IFC Index was
designed to reflect the performance of emerging market investments and includes
650 stocks that foreigners can buy in 18 countries, including Mexico, South
Korea, Brazil, Jordan and Turkey. Please remember that the Fund's performance
differs from that of the indexes because the indexes are unmanaged, do not
contain cash (the Fund generally carries a certain percentage of cash at any
given time), and include no sales charges or management expenses. The
performance of the Fund can also be markedly different from any index because
our philosophy of investing in bargain stocks may result in our purchasing many
stocks which are not predominant in any index, and not "popular" index stocks.
Of course, one cannot invest directly in an index.
Templeton Developing Markets Trust
Index Comparisons
$10,000 Investments 10/17/91 - 12/31/94
[GRAPH APPEARS HERE SHOWING COMPARISON BETWEEN TEMPLETON DEVELOPING MARKETS
TRUST, MSCI WORLD INDEX AND IFC INVESTABLE COMPOSITE INDEX]
<TABLE>
<CAPTION>
10/17/91 12/31/94
<S> <C> <C>
Templeton Developing Markets Trust 10,000 18,023
MSCI 10,000 13,617
IFC Ivestable Composite Index 10,000 12,834
</TABLE>
9
<PAGE>
Templeton Developing Markets Trust
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
OCTOBER 17, 1991
YEAR ENDED DECEMBER 31 (COMMENCEMENT OF
-------------------------------- OPERATIONS) TO
1994 1993 1992 DECEMBER 31, 1991
---------- ---------- -------- -----------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $ 15.27 $ 8.86 $ 10.02 $ 10.00
---------- ---------- -------- -------
Income from investment
operations:
Net investment income .14 .04 .08 .01
Net realized and
unrealized gain (loss) (1.44) 6.55 (1.06) .03
---------- ---------- -------- -------
Total from investment
operations (1.30) 6.59 (.98) .04
---------- ---------- -------- -------
Distributions:
Dividends from net
investment income (.12) (.05) (.07) (.01)
Distributions from net
realized gains (.43) (.13) (.11) --
Distributions from other
sources -- -- -- (.01)
---------- ---------- -------- -------
Total distributions (.55) (.18) (.18) (.02)
---------- ---------- -------- -------
Change in net asset value (1.85) 6.41 (1.16) .02
---------- ---------- -------- -------
Net asset value, end of
year $ 13.42 $ 15.27 $ 8.86 $ 10.02
========== ========== ======== =======
TOTAL RETURN* (8.64)% 74.50% (9.75)% 0.40%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(000) $2,009,154 $1,396,392 $180,189 $23,744
Ratio of expenses to
average net assets 2.11% 2.20% 2.52% 3.78%**
Ratio of expenses, net of
reimbursement,
to average net assets 2.11% 2.20% 2.25% 2.25%**
Ratio of net investment
income to
average net assets 1.08% 0.57% 1.30% 0.86%**
Portfolio turnover rate 18.57% 16.01% 21.98% --
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR PERIODS OF
LESS THAN ONE YEAR.
**ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
LONG TERM SECURITIES: 64.0%
- ---------------------------------------------------------------------------------------------
Argentina: 1.2%
Banco Frances del Rio
de la Plata SA Banking 120,000 $ 791,960
**Comercial de Plata SA Multi-Industry 475,000 1,211,189
Compania Naviera Perez
Companc SA, B Energy Sources 1,603,149 6,604,644
**Industrias
Petroquimicas
Koppers Chemicals 1,382,404 5,778,160
**Molinos Rio de Plata
SA, B Food & Household Products 424,423 2,357,554
Sevel Argentina SA, C Automobiles 890,575 3,339,488
YPF Sociedad Anonima,
ADR Energy Sources 152,000 3,249,000
Zanella Hermanos SA Automobiles 1,509,918 1,751,417
--------------
25,083,412
- ---------------------------------------------------------------------------------------------
Bangladesh: 0.1%
Bangladesh Oxygen Ltd. Building Materials & Components 46,600 213,974
- ---------------------------------------------------------------------------------------------
Bolivia: 0.1%
Compania Boliviana de
Energia Electricas SA Utilities-Electrical & Gas 114,200 2,598,050
- ---------------------------------------------------------------------------------------------
Brazil: 11.2%
Banco Bradesco SA Banking 831,769,691 6,392,941
Banco Bradesco SA, pfd. Banking 468,622,681 3,983,569
Banco do Brasil SA Banking 61,191,000 1,083,666
Banco do Brazil SA,
pfd. Banking 206,111,120 4,063,820
Banespa-Banco do Estado
de Sao Paulo SA, pfd. Banking 525,215,200 7,503,074
Brasmotor SA, pfd. Multi-Industry 5,069,231 2,052,829
Cemig-Cia Energetica de
Minas Gerais, pfd. Utilities-Electrical & Gas 2,309,349 209,941
**Cia Mesbla SA, pfd. Merchandising 46,591,000 8,361,077
**Confab Industrial SA,
pfd. Industrial Components 2,302,680 4,349,809
Copene-Petroquimica do
Nordeste SA, A, pfd. Chemicals 8,394,650 7,324,258
Duratex SA, pfd. Forest Products & Paper 6,779,900 436,251
Eletrobras-Centrais
Eletricas Brasileiras
SA, B, pfd. Utilities-Electrical & Gas 131,534,847 45,656,724
Itausa-Investimentos
Itau SA, pfd. Multi-Industry 37,366,579 22,058,193
Light SA Utilities-Electrical & Gas 22,883,000 8,267,058
Mannesmann SA Machinery & Engineering 332,690 147,688
Mannesmann SA, pfd. Machinery & Engineering 2,417,912 1,141,871
Marcopolo SA, B, pfd. Automobiles 10,371,400 3,306,113
Petrobras-Petroleo
Brasileiro SA, pfd. Energy Sources 260,338,333 32,885,004
**Refripar-Refrigeracao
Parana Sa, pfd. Appliances & Household Durables 714,307,388 2,361,347
Telebras-
Telecomunicacoes
Brasileiras SA Telecommunications 451,592,294 19,460,589
Telebras-
Telecomunicacoes
Brasileiras SA, pfd. Telecommunications 386,057,714 17,274,601
Telebras-
Telecomunicacoes
Brasileiras SA, pfd.,
new Telecommunications 8,094,259 360,180
Telecomunicacoes do Rio
de Janeiro SA, pfd. Telecommunications 9,258,703 535,627
Telecomunicacoes de Sao
Paulo SA Telecommunications 16,630,023 2,729,130
Telecomunicacoes de Sao
Paulo SA, pfd. Telecommunications 26,157 3,721
Unibanco-Uniao de
Bancos Brasileiros
SA, pfd. Banking 118,014,186 3,497,233
Vale de Rio Doce, pfd. Metals & Mining 99,284,000 18,989,384
**Varig SA, pfd. Transportation 468,800 1,549,752
--------------
225,985,450
- ---------------------------------------------------------------------------------------------
Chile: 0.2%
Antofagasta Holdings
PLC Metals & Mining 898,550 4,428,224
- ---------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------------------
China: 0.9%
China First Pencil Co.
Ltd., B Recreation, Other Consumer Goods 310,000 $ 104,780
**China Textile
Machinery Co. Ltd.,
B Machinery & Engineering 1,466,400 222,893
Chiwan Wharf Holdings
Ltd., B Transportation 370,000 143,457
Guangzhou Shipyard
International Co.
Ltd., H Machinery & Engineering 2,844,000 1,019,981
**Luoyang Glass Co.
Ltd., H Miscellaneous Materials & Commodities 1,001,000 381,641
**Shandong Huaneng
Power Utilities-Electrical & Gas 128,000 1,232,000
Shanghai Chlor-Alkali
Chemical Co. Ltd., B Chemicals 5,452,300 1,472,121
Shanghai Erfangji
Textile Machinery
Co. Ltd., B Machinery & Engineering 7,248,600 1,449,720
**Shanghai Forever
Bicycle Co. Ltd., B Recreation, Other Consumer Goods 1,244,000 258,752
**Shanghai Industrial
Sewing Machine Corp. Machinery & Engineering 3,573,700 1,429,480
Shanghai Jinqiao Export
Processing Zone
Development, B Real Estate 2,403,400 1,682,380
Shanghai Lian Hua Fibre
Corp., B Textiles & Apparel 665,300 252,814
**Shanghai Lujiaxui
Finance & Trade Zn
Dev Stock Co Ltd, B Real Estate 200,000 162,000
**Shanghai Narcissus
Electric Appliances
Co. Ltd., B Appliances & Household Durables 170,000 38,760
**Shanghai Outer
Gaoqiao Free Trade
Zone Development,
Co., B Real Estate 1,095,000 646,050
Shanghai Petrochemical
Co. Ltd., H Chemicals 6,556,000 1,864,065
**Shanghai Phoenix
Bicycle Co. Ltd., B Recreation, Other Consumer Goods 1,396,000 718,940
**Shanghai Rubber Belt
Co. Ltd., B Industrial Components 600,480 90,072
**Shanghai Steel Tube
Co. Ltd., B Machinery & Engineering 1,158,000 320,766
Shanghai Tyre & Rubber
Co. Ltd., B Industrial Components 1,554,000 590,520
Shanghai Wingsung
Stationery Co.
Ltd., B Recreation, Other Consumer Goods 485,400 218,430
**Shanghai Yaohua
Pilkington Glass, B Building Materials & Components 2,399,600 2,351,608
Shenzhen China Bicycles
Co. (Holdings) Ltd.,
B Recreation, Other Consumer Goods 1,272,000 558,940
Shenzhen Gintian
Industrial Co. Ltd.,
B Multi-Industry 741,600 330,665
Shenzhen Huafa
Electronics Co. Ltd.,
B Appliances & Household Durables 212,000 49,318
Shenzhen Petrochemical
(Group) Shareholding
Co. Ltd., B Chemicals 208,000 79,302
Shenzhen Properties &
Resources Develop.
(Group) Ltd., B Real Estate 437,600 166,839
Shenzhen Tellus
Machinery &
Electronics Co. Ltd.,
B Multi-Industry 224,000 74,112
Shenzhen Vanke Co.
Ltd., B Real Estate 462,000 217,939
Tsann Kuen Enterprise
Co. Ltd., B Electrical & Electronics 648,000 322,430
**Zhuhai Sez Lizhu
Pharmaceutical, B Chemicals 588,800 304,388
--------------
18,755,163
- ---------------------------------------------------------------------------------------------------
Colombia: 0.1%
Promigas SA Multi-Industry 60,132 166,310
- ---------------------------------------------------------------------------------------------------
Czech Republic: 0.3%
**CEZ, GDR Utilities-Electrical & Gas 94,000 4,324,000
**CEZ, GDS Utilities-Electrical & Gas 30,000 1,380,000
--------------
5,704,000
- ---------------------------------------------------------------------------------------------------
France: 0.1%
Compagnie Financiere
Ottomane SA Banking 52,500 1,765,934
- ---------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- -------------------------------------------------------------------------------------------------
Greece: 3.6%
Alpha Credit Bank Banking 520,286 $ 22,362,980
Alpha Leasing SA Financial Services 71,110 1,806,626
Delta Dairy SA, pfd. Food & Household Products 171,910 3,064,451
Elais Oleaginous
Products SA Food & Household Products 85,820 5,218,542
Ergo Bank SA Banking 284,220 11,713,273
Etba Leasing Financial Services 110,040 2,222,799
Fourlis Brothers Corp.
SA Appliances & Household Durables 301,060 3,761,683
Hellas Can-Container
Manufacturers Food & Household Products 189,290 3,228,415
Hellenic Bottling Co.
SA Food & Household Products 177,790 6,294,107
National Bank of Greece
SA Banking 129,105 6,006,259
Titan Cement Co., SA Building Materials & Components 216,110 6,345,587
Titan Cement Co., pfd. Building Materials & Components 7,100 164,119
X. Benrubi & Son SA Food & Household Products 220,908 1,357,098
--------------
73,545,939
- -------------------------------------------------------------------------------------------------
Hong Kong: 12.8%
C.P. Pokphand Co. Ltd. Food & Household Products 19,591,000 4,582,838
Cheung Kong Holdings
Ltd. Real Estate 9,961,000 40,552,052
China Overseas Land &
Investment Ltd. Real Estate 13,149,000 2,413,128
**China Pharmaceutical
Enterprise &
Investment Corp.
Ltd. Health & Personal Care 2,101,000 233,520
**China Treasure
Telecomunications
Holdings Ltd. Electrical & Electronics 2,376,000 168,892
CNT Group Ltd. Multi-Industry 36,736,000 2,516,327
Cross Harbour Tunnel
Co. Ltd. Transportation 1,447,598 2,778,266
Dairy Farm
International
Holdings Ltd. Food & Household Products 5,048,603 5,415,626
Dickson Concepts
(International) Ltd. Merchandising 4,139,000 2,701,383
East Asiatic Co. Ltd. Wholesale & International Trade 2,976,000 461,544
Fairwood Holdings Ltd. Food & Household Products 4,824,000 467,593
Fortei Holdings Ltd. Merchandising 5,768,000 454,731
**Fu Hui Jewellery Co.
Ltd. Recreation, Other Consumer Goods 4,808,000 285,839
Gold Peak Industries
(Holdings) Ltd. Electrical & Electronics 2,837,000 1,118,300
Goldlion Holdings Ltd. Textiles & Apparel 11,839,000 2,815,349
Great Wall Electronic
International Ltd. Electrical & Electronics 3,812,000 300,526
Hang Lung Development
Co. Ltd. Real Estate 15,271,000 21,709,984
**Hang Lung Development
Co. Ltd., wts. Real Estate 1,399,100 209,752
Hong Kong Electric
Holdings Ltd. Utilities-Electrical & Gas 1,386,000 3,788,549
Hopewell Holdings Ltd. Construction & Housing 2,501,000 2,068,679
HSBC Holdings PLC Banking 3,435,515 37,074,701
IMC Holdings Ltd. Transportation 793,000 717,415
Jardine International
Motor Holdings Ltd. Automobiles 4,413,000 4,648,265
Jardine Matheson
Holdings Ltd. Multi-Industry 1,034,118 7,384,171
Jardine Strategic
Holdings Ltd. Multi-Industry 3,663,500 12,026,223
**JCG Holdings Ltd. Banking 4,066,000 2,115,108
Joyce Boutique Holdings
Ltd. Merchandising 7,448,000 1,838,537
K Wah International
Holdings Ltd. Building Materials & Components 28,026,403 5,867,887
Lai Sun Development Co.
Ltd. Real Estate 36,834,000 4,570,034
Lai Sun Garment
International Ltd. Multi-Industry 3,227,000 3,899,509
Laws International
Holdings Ltd. Textiles & Apparel 7,054,000 1,203,396
Le Saunda Holdings Ltd. Merchandising 2,598,000 224,964
Leefung-Asco Printers
Holdings Ltd. Broadcasting & Publishing 940,000 139,709
LI & Fung Ltd. Merchandising 1,720,000 1,122,585
**Linkful International
Holdings Ltd. Merchandising 1,600,000 140,614
Ming Pao Enterprise
Corp. Ltd. Broadcasting & Publishing 3,363,000 2,021,060
New World Development
Co. Ltd. Real Estate 8,208,897 21,908,074
Peregrine Investments
Holdings Ltd. Financial Services 2,544,000 2,991,974
S. Megga International
Holdings Ltd. Electronic Components & Instruments 3,690,000 414,901
Semi-Tech Co. Ltd. Appliances & Household Durables 2,280,000 3,845,428
</TABLE>
13
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- ----------------------------------------------------------------------------------------------
Hong Kong (cont.)
Stelux Holdings Ltd. Multi-Industry 12,930,570 $ 3,843,659
Sun Hung Kai & Co. Ltd. Financial Services 12,819,000 5,135,884
Sun Hung Kai Properties
Ltd. Real Estate 3,475,900 20,754,324
Swire Pacific Ltd., B Multi-Industry 1,825,000 1,792,569
Tian An China
Investments Co. Ltd. Real Estate 12,020,000 2,407,884
Top Form International
Ltd. Textiles & Apparel 5,204,000 416,993
Tungtex (Holdings) Co.
Ltd. Textiles & Apparel 7,314,000 850,740
**Vitasoy International
Holdings Ltd. Food & Household Products 1,154,000 398,960
Wheelock & Co. Ltd. Multi-Industry 2,698,000 4,480,685
Wing Shan International
Ltd. Utilities-Electrical & Gas 5,026,000 734,007
Wo Kee Hong Holdings
Ltd. Merchandising 10,321,000 2,374,330
Yaohan Hongkong Corp.
Ltd. Merchandising 9,530,000 1,293,247
Yue Yuen Industrial
Ltd. Recreation, Other Consumer Goods 17,494,000 3,459,234
--------------
257,139,949
- ----------------------------------------------------------------------------------------------
Hungary: 0.2%
**Chinoin
Pharmaceutical &
Chemical Works Co.
Ltd. Health & Personal Care 4,631 1,964,543
Fotex First Hungarian-
American Photo-
Service Co. Multi-Industry 361,400 1,093,394
**+Ibusz Leisure & Tourism 94,260 950,594
--------------
4,008,531
- ----------------------------------------------------------------------------------------------
India: 1.0%
Aban Loyd Chiles
Offshore Ltd. Energy Sources 245,000 1,405,858
ATV Project India Ltd. Machinery & Engineering 1,732,000 3,036,780
Essar Shipping Ltd. Transportation 773,500 1,880,195
Flex Industries Ltd. Food & Household Products 20,000 160,988
Ganesh Benzoplast Ltd. Chemicals 300,000 1,817,095
Garden Silk Mills Ltd. Textiles & Apparel 229,600 622,148
**Industrial Credit &
Investment Corp. of
India Ltd. Financial Services 236,915 9,667,303
**Videocon
International Ltd. Appliances & Household Durables 404,000 1,996,254
**Zuari Agro Chemical
Ltd. Chemicals 2,000 27,097
--------------
20,613,718
- ----------------------------------------------------------------------------------------------
Indonesia: 1.6%
PT Anwar Sierad,fgn. Food & Household Products 336,000 305,732
+PT Aqua Golden
Mississippi, fgn. Beverages & Tobacco 893,250 1,117,578
PT Astra International,
fgn. Multi-Industry 122,100 233,312
PT Bank International
Indonesia fgn. Financial Services 60,000 141,947
PT Bank International
Indonesia, fgn. Financial Services 305,000 971,338
PT Bank PDFCI, fgn. Financial Services 591,000 490,707
PT BBL Dharmala
Finance, fgn. Financial Services 476,500 845,473
PT Branta Mulia, fgn. Industrial Components 1,386,000 2,009,952
PT Charoen Pokphand
Indonesia fgn. Food & Household Products 200,000 818,926
PT Charoen Pokphand
Indonesia, fgn. Food & Household Products 236,000 966,333
PT Cipendawa Farm
Enterprises, fgn. Food & Household Products 65,000 75,409
PT Duta Pertiwi
Nusantarafgn. Chemicals 687,500 187,671
PT Ekadharma Tape, fgn. Food & Household Products 2,420 3,854
PT Eratex Djaja, fgn. Textiles & Apparel 567,000 245,064
PT Ficorinvest Bank,
fgn. Financial Services 459,000 261,033
PT Gadjah Tunggal, fgn. Industrial Components 140,000 191,083
PT Gajah Surya Multi
Finance, fgn. Financial Services 1,866,200 1,008,240
PT Ganda Wangsa Utama,
fgn. Textiles & Apparel 1,022,000 464,968
PT Hadtex Indosyntec,
fgn. Textiles & Apparel 2,918,000 1,692,652
PT Hotel Prapatan, fgn. Leisure & Tourism 1,185,000 754,777
PT Indospring, fgn. Industrial Components 207,500 151,046
PT Intan Wijaya
Chemical Industry,
fgn. Chemicals 1,490,500 678,116
</TABLE>
14
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- --------------------------------------------------------------------------------------------
Indonesia (cont.)
PT Inter-Pacific Bank,
fgn. Financial Services 738,000 $ 805,823
PT Jakarta International
Hotel & Development,
fgn. Real Estate 571,000 740,378
PT Japfa Comfeed
Indonesia, fgn. Food & Household Products 3,839,500 4,585,390
PT Metrodata Electronic,
fgn. Electrical & Electronics 345,500 298,658
**PT Multibreeder Adirama,
fgn. Food & Household Products 467,500 792,283
PT Multipolar Corp., fgn. Electrical & Electronics 346,000 255,801
PT Polysindo Eka Perkasa,
fgn. Textiles & Apparel 3,349,500 6,324,124
PT Pudjiadi & Sons Estates
Ltd., fgn. Leisure & Tourism 154,400 273,958
**PT Pudjiadi Prestige
Ltd., fgn. Real Estate 425,000 372,213
+PT Sarasa Nugraha, fgn. Textiles & Apparel 2,567,000 2,919,700
PT Sari Husada, fgn.,
zero, conv., 6/21/96 Corporate Bond 124,560,000* 44,769
PT Summarecon Agung, fgn. Real Estate 400,500 431,294
PT Unggul Indah Corp.,
fgn. Chemicals 200,000 238,854
--------------
31,698,456
- --------------------------------------------------------------------------------------------
Israel: 0.2%
**Bank Hapoalim BM Banking 624,348 904,552
Clal Industries Ltd. Multi-Industry 175,178 1,043,065
**Discount Investment Corp. Multi-Industry 20,732 1,394,322
**The First International
Bank of Israel Banking 4,977 562,018
--------------
3,903,957
- --------------------------------------------------------------------------------------------
Italy: 2.5%
Banca Commerciale Italiana
SPA Banking 2,097,000 4,492,648
Banca Commerciale Italiana
SPA, di Risp Banking 187,000 409,279
**Banca Commerciale
Italiana, wts. Banking 391,000 197,428
Banco Ambrosiano Veneto
SPA Banking 299,000 792,663
Banco Ambrosiano Veneto
SPA, di Risp Banking 2,138,000 3,058,052
Instituto Finanziaro
Industriale SPA, pfd. Automobiles 91,000 1,261,152
Istituto Mobiliare
Italiano SPA Banking 719,000 4,403,986
Italmobiliare SPA Multi-Industry 500,260 10,841,023
+Italmobiliare SPA, di
Risp Multi-Industry 788,350 9,234,679
**Italmobiliare SPA, wts. Multi-Industry 162,360 237,234
**Mediobanca/Italmobiliare,
6.00%, conv., 12/31/99 Corporate Bond 2,922,480,000* 1,916,188
Sirti SPA Construction & Housing 1,912,000 12,377,312
Teleco Cavi SPA Telecommunications 1,000 4,633
+Teleco Cavi SPA, di Risp Telecommunications 557,000 1,502,389
--------------
50,728,666
- --------------------------------------------------------------------------------------------
Korea (South): 1.0%
Central Investment &
Finance Corp. Financial Services 249,934 6,878,336
Choil Aluminium Mfg. Co.
Ltd. Metals & Mining 74,592 2,837,996
Dae Yu Co. Textiles & Apparel 44,100 1,426,189
**Dae Yu Co. Ltd., rts. Textiles & Apparel 10,584 90,605
Daegu Bank Co. Ltd. Banking 170,730 2,511,691
Daehan Synthetic Fiber Co.
Ltd. Textiles & Apparel 9,600 1,484,134
Hae In Corp. Ltd. Merchandising 21,788 1,384,374
Hankook Cosmetics Co. Health & Personal Care 35,400 1,584,807
Samseong Publishing Co.
Ltd. Business & Public Services 10,300 348,776
Yuhwa Corp. Textiles & Apparel 18,310 1,021,737
--------------
19,568,645
- --------------------------------------------------------------------------------------------
Malaysia: 2.4%
Federal Flour Mills Bhd. Food & Household Products 1,777,000 4,871,353
Malayawata Steel Bhd. Metals & Mining 1,626,000 2,941,892
Malayawata Steel Bhd.,
fgn. Metals & Mining 1,518,000 2,746,489
</TABLE>
15
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------------
Malaysia (cont.)
Malaysian International
Shipping Corp.
Bhd., fgn. Transportation 5,291,000 $ 15,126,023
Oriental Holdings Bhd. Automobiles 300,000 1,550,813
Oriental Holdings Bhd.,
fgn. Automobiles 1,853,160 9,579,680
Perlis Plantations Bhd. Multi-Industry 1,228,600 4,041,606
Perlis Plantations
Bhd., fgn. Multi-Industry 1,430,000 4,704,132
Shangri-La Hotels Leisure & Tourism 1,814,202 2,245,106
--------------
47,807,094
- ---------------------------------------------------------------------------------------------
Mexico: 3.9%
Cemex SA, B Building Materials & Components 627,750 3,270,578
DESC Sociedad de
Fomento Industrial
SA, A Multi-Industry 500,000 2,185,000
DESC Sociedad de
Fomento Industrial
SA, B Multi-Industry 507,108 2,434,118
DESC Sociedad de
Fomento Industrial
SA, C Multi-Industry 188,000 1,049,040
Grupo Financiero
Banamex Accival SA, B Banking 62,000 182,280
Grupo Financiero
Bancomer SA, C Banking 1,478,000 798,120
Grupo Financiero Serfin
SA, B Banking 1,124,000 2,135,600
Grupo Industrial Alfa
SA, A Multi-Industry 1,603,982 15,398,227
Telefonos de Mexico SA,
ADR, L Telecommunications 1,025,100 42,029,100
**Tubos de Acero de
Mexico SA Metals & Mining 320,525 1,528,904
Vitro SA Food & Household Products 1,445,000 6,632,550
--------------
77,643,517
- ---------------------------------------------------------------------------------------------
Pakistan: 0.4%
**Bank of Punjab Banking 1,987,620 3,552,874
+Exide Pakistan Ltd. Energy Equipment & Services 198,400 483,600
Khadim Ali Sham Bukhari
& Co. Ltd. Financial Services 3,009 7,921
**Kohinoor Industries
Ltd. Textiles & Apparel 311,931 177,411
National Development
Leasing Corp. Financial Services 460,632 557,653
**Pakistan Electron
Ltd. Appliances & Household Durables 237,406 725,276
+**Trust Modaraba Financial Services 2,427,000 1,695,868
**Union Bank Ltd. Banking 737,800 839,248
--------------
8,039,851
- ---------------------------------------------------------------------------------------------
Philippines: 3.6%
A. Soriano Corp., B Multi-Industry 16,537,255 2,033,269
Dizon Copper Silver
Mines Inc. Metals & Mining 141,371,500 637,331
Philex Minning Corp., B Metals & Mining 15,467,095 2,535,589
Philippine Commercial
International
Bank Inc. Banking 264,511 2,384,935
Philippine Long
Distance Telephone
Co. Telecommunications 600,575 33,106,697
Philippine National
Bank Banking 1,460,427 20,649,480
RFM Corp. Food & Household Products 5,414,050 8,764,548
**Robinson's Land
Corp., B Real Estate 1,202,000 201,975
Sime Darby Pilipinas
Inc. Industrial Components 662,758 1,656,895
--------------
71,970,719
- ---------------------------------------------------------------------------------------------
Poland: 0.1%
**Elektrim SA Utilities-Electrical & Gas 26,000 1,162,905
- ---------------------------------------------------------------------------------------------
Portugal: 4.8%
Banco Chemical Portugal
SA Banking 112,015 1,163,710
Banco Comercial
Portugues SA Banking 1,382,552 18,095,319
+Banco Comercial
Portugues, 8.75%,
conv., 5/21/02 Corporate Bond 8,780,000* 11,115,082
Banco Espirito Santo e
Comercial de Lisboa Banking 809,600 15,690,712
Banco Portugues de
Investimento SA Banking 961,980 14,382,485
Banco Portugues de
Atlantico SA Banking 361,400 4,575,490
**Banco Portugues de
Atlantico SA, new Banking 32,140 380,211
</TABLE>
16
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- ----------------------------------------------------------------------------------------------
Portugal (cont.)
Banco Totta & Acores SA Banking 337,990 $ 7,571,384
Cel-Cat Fabrica
Nacional de
Conductores
Electricos SA Electrical & Electronics 64,581 1,393,864
+Compta-Equipamentos e
Servicos de
Informatica SA Business & Public Services 125,000 1,439,403
Espirito Santo
Financial Holding SA,
ADR Banking 652,200 8,723,175
Portuguesa Radio
Marconi SA Telecommunications 160,980 5,500,386
Portuguesa Radio
Marconi SA, br. Telecommunications 194,800 6,668,210
--------------
96,699,431
- ----------------------------------------------------------------------------------------------
Singapore: 1.0%
Acma Ltd. Electrical & Electronics 60,000 196,775
**Acma Ltd., fgn. Electrical & Electronics 138,000 452,583
Chemical Industries
(Far East) Ltd. Chemicals 440,000 1,322,264
First Capital Corp.
Ltd., fgn. Real Estate 112,000 376,535
Hai Sun Hup Group Ltd. Transportation 362,000 362,621
Hinds Hotels
International Ltd. Leisure & Tourism 335,000 416,021
**Hotel Properties
Ltd., fgn. Leisure & Tourism 152,000 276,364
Inchcape Bhd., fgn. Wholesale & International Trade 342,000 1,290,566
Inter-Roller
Engineering Ltd.,
fgn. Industrial Components 262,000 109,654
Isetan (Singapore)
Ltd., fgn. Merchandising 325,000 726,930
Jaya Holdings Ltd. Transportation 4,119,000 3,843,458
Jaya Holdings Ltd.,
3.50%, conv., 9/7/97 Corporate Bond 823,800* 432,389
Jaya Holdings Ltd.,
3.00%, conv., 8/31/98 Corporate Bond 508,800* 768,000
**Jaya Holdings Ltd.,
wts. exp. 8/31/98 Transportation 318,071 172,402
**Jaya Holdings Ltd.,
wts. exp. 10/9/99 Transportation 137,300 82,898
**Osprey Maritime Ltd. Transportation 399,000 873,810
Prima Ltd. Food & Household Products 983,000 3,439,657
Singapore Bus Service
Ltd., fgn. Transportation 328,200 2,589,571
TIBS Holdings Ltd. Transportation 788,800 2,424,579
Wing Tai Holdings Ltd.,
fgn. Real Estate 172,000 304,467
--------------
20,461,544
- ----------------------------------------------------------------------------------------------
South Africa: 0.8%
Amalgamated Bank of
South Africa Banking 1,920,260 5,470,289
Engen Ltd. Energy Sources 560,602 5,231,551
First National Bank
Holdings Ltd. Banking 427,200 2,570,334
Nedcor Ltd. Banking 130,000 1,384,762
Rembrandt Group Ltd. Multi-Industry 76,000 522,593
--------------
15,179,529
- ----------------------------------------------------------------------------------------------
Spain: 3.7%
Banco Bilbao Vizcaya SA Banking 1,271,200 31,532,520
Bankinter SA Banking 332,750 27,479,525
Endesa-Empresa Nacional
de Electricidad SA Utilities-Electrical & Gas 257,500 10,485,850
Union Electrica-Fenosa,
SA Utilities-Electrical & Gas 1,380,267 5,746,525
--------------
75,244,420
- ----------------------------------------------------------------------------------------------
Sri Lanka: 0.1%
Associated Motorways
Ltd. Automobiles 281,088 567,897
**Ceylon Holiday
Resorts Ltd. Recreation, Other Consumer Goods 144,600 349,698
**Colombo Dock Yard
Ltd. Transportation 40,000 16,526
Hayleys Ltd. Multi-Industry 5,060 19,579
**Kelani Tyres Ltd. Industrial Components 700 578
Lanka Ceramic Ltd. Building Materials & Components 309,100 532,609
Lanka Orix Leasing Co.
Ltd. Financial Services 819 4,456
+United Motor Lanka
Ltd. Automobiles 884,840 677,628
--------------
2,168,971
- ----------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------------
Thailand: 1.0%
American Standard
Sanitaryware Public
Co.Ltd.,fgn Health & Personal Care 34,000 $ 460,466
Asia Fibre Public Co.
Ltd. Textiles & Apparel 79,000 61,362
Asia Fibre Public Co.
Ltd., fgn. Textiles & Apparel 864,500 671,490
Ayudhya Insurance
Public Co. Ltd., fgn. Insurance 209,000 1,623,382
Bangkok Bank Public Co.
Ltd. Banking 500,000 4,102,768
Bangkok Land Co. Ltd.,
fgn. Real Estate 802,000 1,996,614
Bank of Ayudhya Ltd. Banking 127,000 485,640
Bank of Ayudhya Ltd.,
fgn. Banking 207,400 855,045
Charoen Pokphand
Feedmill Public Co.
Ltd. Food & Household Products 71,000 444,015
Chareon Pokphand
Feedmill Public Co.
Ltd., fgn. Food & Household Products 338,500 2,292,173
Hua Thai Manufacturing
Public Co. Ltd. Textiles & Apparel 35,000 78,072
Karat Sanitaryware
Public Co. Ltd. Building Materials & Components 48,000 184,505
Karat Sanitaryware
Public Co. Ltd., fgn. Building Materials & Components 46,000 177,734
**Kian Gwan (Thailand)
Public Co. Ltd.,
fgn. Real Estate 79,000 298,944
Padaeng Industry Public
Co. Ltd., fgn. Metals & Mining 357,110 654,334
**Royal Ceramic
Industry Public Co.
Ltd., fgn. Building Materials & Components 53,200 67,811
Saha Pathanapibul Co
Ltd., fgn. Health & Personal Care 208,400 547,875
Saha Union Public Co.
Ltd., fgn. Textiles & Apparel 1,912,080 2,265,859
Textile Prestige Corp.
Ltd. Textiles & Apparel 66,000 132,762
Thai Asahi Glass Public
Co. Ltd. Building Materials & Components 34,700 95,371
Thai Asahi Glass Public
Co. Ltd., fgn. Building Materials & Components 32,000 87,951
Thai Farmers Bank
Public Co. Ltd. Banking 104,500 720,116
Thai Rayon Public Co.
Ltd. Textiles & Apparel 10,000 93,209
Thai Rayon Public Co.
Ltd., fgn. Textiles & Apparel 11,000 104,282
Thai Wacoal Public Co.
Ltd. Textiles & Apparel 14,000 89,225
Thai Wacoal Public Co.
Ltd., fgn. Textiles & Apparel 99,000 803,002
**Thai Wah Public Co.
Ltd. Food & Household Products 55,200 83,003
**Thai Wah Public Co.
Ltd., fgn. Food & Household Products 22,600 33,983
United Motor Works
(Siam) Public Co.
Ltd. Machinery & Engineering 14,400 86,039
United Standard
Terminal Public Co.
Ltd., fgn. Transportation 212,100 328,436
--------------
19,925,468
- ---------------------------------------------------------------------------------------------
Turkey: 4.4%
Akbank AS Banking 41,704,444 11,228,120
**Akbank AS, new Banking 10,426,111 2,673,362
**Akbank AS, rts. Banking 41,704,444 2,406,026
Akcimento Ticaret AS Building Materials & Components 2,759,000 4,386,103
**Aksigorta AS Insurance 18,780,000 3,756,000
**Alcatel Teletas
Endustri Tic AS Telecommunications 4,152,000 1,543,692
**Anadolu Anonim Turk
Sigorta Sirketi Insurance 822,000 115,923
Arcelik AS Appliances & Household Durables 49,301,992 12,641,536
Bagfas Bandirma Gubre
Fabrikalari AS Chemicals 9,437,000 1,959,992
Bekoteknik AS Appliances & Household Durables 13,722,000 2,357,369
**Borusan AS Industrial Components 872,000 626,051
Celik Halat ve Sanayii
ve Ticaret AS Building Materials & Components 5,243,200 793,202
**Cimentas Izmir
Cimento Fabrikasi
TAS Building Materials & Components 3,379,000 2,339,308
Cimsa Cimento Sanayi ve
Ticaret AS Building Materials & Components 1,256,000 3,188,308
Cukurova Elektrik AS Utilities-Electrical & Gas 15,136,500 3,881,154
**Dardanel Onentas Food & Household Products 706,000 977,538
Eregli Demir ve Celik
Fabrikalari AS Metals & Mining 116,096,750 10,418,939
Finans Bank AS, br. Banking 2,324,000 220,482
**Finans Bank, new Banking 995,999 67,677
Izocam Ticaret ve
Sanayii AS, br. Building Materials & Components 2,493,650 543,488
Kartonsan Forest Products & Paper 12,802,500 6,072,981
Koc Holding AS Multi-Industry 4,049,140 2,958,987
</TABLE>
18
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, December 31, 1994 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------------------
Turkey (cont.)
Koc Yatirim ve Sanayii
Mamullesi
Pazarlanca AS Multi-Industry 3,069,444 $ 2,361,111
**Kordsa Kord Bezi
Sanayi ve Ticaret AS Industrial Components 173,800 67,960
Marshall Boya ve Vernik
Sanayii AS Industrial Components 4,480,140 930,491
**Metas Izmir Metalurji
Fabrikalari AS Metals & Mining 10,907,000 1,034,767
Otosan Otomobil Sanayii
AS Automobiles 7,016,000 1,727,015
Peg Profilo Elektrikli
Gerecler Sanayii AS Appliances & Household Durables 2,980,703 355,391
**Petkim Petrokimya
Holding AS Chemicals 1,608,000 742,154
Tekstil Bankasi
Tekstilbank AS, br. Banking 53,682 5,299
Tofas Turk Otomobil
Fabrikasi AS Automobiles 408,700 345,823
**Trakya Cam Sanayii AS Miscellaneous Materials & Commodities 1,566,200 377,494
Turk Demir Dokum, br. Appliances & Household Durables 5,935,996 1,095,876
Turkiye Garanti Bankasi
AS Banking 14,356,088 3,607,427
Turkiye Petrol
Rafinerileri AS Energy Sources 3,458,280 1,285,771
Vakif Finansal Kiralama
AS Financial Services 4,492,000 437,682
--------------
89,530,499
- ---------------------------------------------------------------------------------------------------
Venezuela: 0.7%
Banco Venezolano de
Credito Banking 12,000 445,113
Ceramica Carabobo CA, B Building Materials & Components 1,603,882 1,599,862
Consolidada Carabobo, A Building Materials & Components 5,484,664 625,444
Consolidada Carabobo, B Building Materials & Components 9,797,772 1,105,012
Electricidad de Caracas Utilities-Electrical & Gas 5,735,976 6,957,926
Fabrica Nacional de
Cementos CA Building Materials & Components 1,221,000 153,008
HL Boulton & Co. SA Multi-Industry 12,912,748 469,260
Industrias Ventane Utilities-Electrical & Gas 3,033,414 775,459
**Inmuebles y Valores
Caracas CA Building Materials & Components 1,015,000 712,281
Manufacturera de
Aparatos
Domesticos SA Appliances & Household Durables 405,225 710,921
Vencemos de Cementos SA Building Materials & Components 1,145,493 1,663,692
--------------
15,217,978
--------------
TOTAL LONG TERM SECURITIES (cost $1,236,945,621) 1,286,960,304
- ---------------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 35.6% (cost $713,997,201)
- ---------------------------------------------------------------------------------------------------
U.S. Treasury Bills,
4.80% to 5.45% with
maturities to 3/2/95 U.S. $717,550,000* 714,528,255
- ---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.6% (cost $1,950,942,822) 2,001,488,559
OTHER ASSETS, LESS LIABILITIES: 0.4% 7,665,629
--------------
TOTAL NET ASSETS: 100.0% $2,009,154,188
==============
</TABLE>
*PRINCIPAL AMOUNT IN CURRENCY OF COUNTRY INDICATED.
**NON-INCOME PRODUCING.
+SEE NOTE 5.
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
Templeton Developing Markets Trust
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1994
<TABLE>
<S> <C>
Assets:
Investment in securities, at value (identified cost
$1,950,942,822) $2,001,488,559
Cash 1,479,479
Receivables:
Investment securities sold 4,368,977
Fund shares sold 18,832,711
Dividends and interest 3,154,012
--------------
Total assets 2,029,323,738
--------------
Liabilities:
Payables:
Investment securities purchased 5,797,395
Fund shares redeemed 6,972,361
Accrued expenses 7,399,794
--------------
Total liabilities 20,169,550
--------------
Net assets, at value $2,009,154,188
==============
Net assets consist of:
Undistributed net investment income $ 2,848,467
Net unrealized appreciation 50,545,737
Accumulated net realized gain 6,154,792
Net capital paid in on shares of beneficial interest 1,949,605,192
--------------
Net assets, at value $2,009,154,188
==============
Shares outstanding 149,707,251
==============
Net asset value per share ($2,009,154,188 / 149,707,251) $ 13.42
==============
Maximum Offering price ($13.42 / 94.25%) $ 14.24
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
Templeton Developing Markets Trust
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
for the year ended December 31, 1994
<TABLE>
<S> <C> <C>
Investment Income: (net of $2,395,892 foreign
taxes withheld)
Dividends $ 30,035,368
Interest 29,512,490
-------------
Total income $ 59,547,858
Expenses:
Management fees (Note 3) 23,325,167
Administrative fees (Note 3) 1,974,513
Distribution fees (Note 3) 6,531,047
Transfer agent fees (Note 3) 2,430,000
Custodian fees 3,215,344
Reports to shareholders 1,024,000
Audit fees 56,000
Legal fees 30,000
Registration and filing fees 675,000
Trustees' fees and expenses 42,000
Other 44,857
-------------
Total expenses 39,347,928
-------------
Net investment income 20,199,930
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 57,957,553
Foreign currency transactions (1,803,469)
-------------
56,154,084
-------------
Net unrealized depreciation on:
Investments (253,444,308)
Foreign currency translation of other assets and
liabilities (5,225)
-------------
(253,449,533)
-------------
Net realized and unrealized loss (197,295,449)
-------------
Net decrease in net assets resulting from
operations $(177,095,519)
=============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
Templeton Developing Markets Trust
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended December 31, 1994 and 1993
<TABLE>
<CAPTION>
1994 1993
-------------- --------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 20,199,930 $ 3,076,082
Net realized gain from security and foreign
currency transactions 56,154,084 18,146,623
Net unrealized appreciation (depreciation) (253,449,533) 325,714,917
-------------- --------------
Net increase (decrease) in net assets
resulting from operations (177,095,519) 346,937,622
Distributions to shareholders:
From net investment income (17,351,463) (3,289,755)
From net realized gain (59,144,627) (9,483,791)
Fund share transactions (Note 2) 866,353,985 882,038,723
-------------- --------------
Net increase in net assets 612,762,376 1,216,202,799
Net assets:
Beginning of year 1,396,391,812 180,189,013
-------------- --------------
End of year $2,009,154,188 $1,396,391,812
============== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
Templeton Developing Markets Trust
Notes to Financial Statements
- -------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Developing Markets Trust (the Fund) is a Massachusetts business
trust and an open-end, diversified management investment company registered
under the Investment Company Act of 1940. The following summarizes the Fund's
significant accounting policies.
a. Securities Valuations:
Securities listed or traded on a recognized national or foreign stock exchange
or NASDAQ are valued at the last reported sales prices on the principal ex-
change on which the securities are traded. Over-the-counter securities and
listed securities for which no sale is reported are valued at the mean between
the last current bid and asked prices. Securities for which market quotations
are not readily available are valued at fair value as determined by management
and approved in good faith by the Board of Trustees.
b. Foreign Currency Translations:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation. Purchases and
sales of portfolio securities and income items denominated in foreign curren-
cies are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customar-
ily enters into foreign exchange contracts to minimize foreign exchange risk
between the trade date and the settlement date of such transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from invest-
ments.
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.
The Brazilian government has exercised and may continue to exercise substan-
tial influence over exchange of their currency. Under current Brazilian law,
whenever there occurs a serious imbalance, Brazil's National Monetary Council
may, for a limited period, impose restrictions on foreign capital remittances
abroad. Exchange control regulations may restrict repatriation of investment
income, capital, or the proceeds of securities sales by foreign investors.
c. Income Taxes:
It is the Fund's policy to comply with the requirements of the Internal Reve-
nue Code applicable to regulated investment companies and to distribute all
its taxable income to its shareholders. Therefore, no provision has been made
for federal income taxes.
d. Security Transactions, Investment Income, Distributions, and Expenses:
Security transactions are accounted for on a trade date basis. Dividend income
is recorded on the ex-dividend date. Certain dividend income on foreign secu-
rities is recorded as soon as information is available to the Fund. Interest
income and estimated expenses are accrued daily. Distributions to sharehold-
ers, which are determined in accordance with income tax regulations, are re-
corded on the ex-dividend date.
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
At December 31, 1994, there were an unlimited number of shares of beneficial
interest authorized ($0.01 par value). Transactions in the Fund's shares were
as follows:
<TABLE>
<CAPTION>
1994 1993
--------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 84,733,238 $1,257,587,619 76,604,573 $948,071,744
Shares issued on
reinvestment of
distributions 4,603,992 63,556,714 664,419 9,512,693
Shares redeemed (31,092,171) (454,790,348) (6,137,449) (75,545,714)
----------- -------------- ---------- ------------
Net increase 58,245,059 $ 866,353,985 71,131,543 $882,038,723
=========== ============== ========== ============
</TABLE>
23
<PAGE>
Templeton Developing Markets Trust
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTION WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton In-
vestment Management (Hong Kong) Limited (TIML), Templeton Global Investors,
Inc. (TGII), Franklin Templeton Distributors, Inc. (FTD), and Franklin Temple-
ton Investor Services, Inc. (FTIS), the Fund's investment manager, administra-
tive manager, principal underwriter, and transfer agent, respectively. The Fund
pays monthly an investment management fee to TIML equal, on an annual basis, to
1.25% of the average daily net assets of the Fund. The fee is subject to reduc-
tion in any year to the extent that expenses (exclusive of certain expenses) of
the Fund exceed 2 1/2 of the first $30 million of net assets, 2% of the next
$70 million of net assets and 1 1/2% of the remainder. During the year ended
December 31, 1994, no reduction in fee was required as a result of this limita-
tion. The Fund pays TGII an administrative fee of 0.15% per annum on the first
$200 million of the Fund's aggregate average daily net assets, 0.135% of the
next $500 million, 0.10% of the next $500 million, and 0.075% per annum of av-
erage net assets in excess of $1.2 billion. For the year ended December 31,
1994, FTD received net commissions of $7,272,994 from the sale of the Fund's
shares, and FTIS received fees of $2,430,000.
Pursuant to a distribution plan, the Fund will reimburse FTD monthly (subject
to a limit of 0.35% per annum of the Fund's average daily net assets) for FTD's
costs and expenses in connection with any activity which is primarily intended
to result in a sale of Fund shares. Such distribution fees are set forth in the
Statement of Operations.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the
year ended December 31, 1994 aggregated $661,474,953 and $215,448,932, respec-
tively. The cost of securities for federal income tax purposes is
$1,951,182,726. Realized gains and losses are reported on an identified cost
basis.
At December 31, 1994, the aggregate gross unrealized appreciation and deprecia-
tion of portfolio securities, based on cost for federal income tax purposes,
was as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 196,423,105
Unrealized depreciation (146,117,272)
-------------
Net unrealized appreciation $ 50,305,833
=============
</TABLE>
5. HOLDING OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES
The Investment Company Act of 1940 defines "affiliated companies" as invest-
ments in portfolio companies in which the Fund owns 5% or more of the outstand-
ing voting securities. Investments in "affiliated companies" December 31, 1994
amounted to $31,136,521. For the year ended December 31, 1994, dividend and in-
terest income from "affiliated companies" was $1,834,964 and net realized gains
from disposition of "affiliated companies" were $5,100,835.
24
<PAGE>
Templeton Developing Markets Trust
Independent Auditor's Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders Templeton Developing Markets Trust
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of Templeton Developing Markets Trust as of December
31, 1994, 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 each of the three years in the period
then ended and for the period from October 17, 1991 (commencement of opera-
tions) to December 31, 1991. These financial statements and financial high-
lights 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 stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights 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 De-
cember 31, 1994, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant esti-
mates 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 Tem-
pleton Developing Markets Trust as of December 31, 1994, the results of its op-
erations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
[SIGNATURE OF MCGLADREY & PULLEN, LLP APPEARS HERE]
New York, New York
February 3, 1995
25
<PAGE>
NOTES
-----
<PAGE>
NOTES
-----
<PAGE>
NOTES
-----
<PAGE>
The Franklin Templeton Group
Literature Request - Call today for a free descriptive brochure and prospectus
on any of the funds listed below. The prospectus contains more complete
information, including fees, charges and expenses, and should be read carefully
before investing or sending money.
Templeton Funds
Americas Government
Securities Fund
Developing Markets Trust
Foreign Fund
Global Infrastructure Fund
Global Opportunities Trust
Global Rising Dividends Fund
Growth Fund
Income Fund
Real Estate
Securities Fund
Smaller Companies
Growth Fund
World Fund
Franklin Funds Seeking
Tax-Free Income
Federal Tax-Free
Income Fund
Federal Intermediate-Term
Tax-Free Income Fund
High Yield Tax-Free
Income Fund
Insured Tax-Free
Income Fund***
Puerto Rico Tax-Free
Income 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**
Franklin Funds
Seeking Capital Growth
California Growth Fund
DynaTech Fund
Equity Fund
Global Health
Care Fund
Gold Fund
Growth Fund
International
Equity Fund
Japan Fund
Pacific Growth Fund
Real Estate Securities Fund
Small Cap Growth Fund
Franklin Funds Seeking Growth and Income
Balance Sheet
Investment Fund
Convertible Securities Fund
Equity Income Fund
Global Utilities Fund
Income Fund
Premier Return Fund
Rising DividendsFund
Strategic Income Fund
Utilities Fund
Franklin Funds Seeking
High Current Income
AGE High Income Fund
Global Government
Income Fund
Investment Grade
Income Fund
U.S. Government
Securities Fund
Franklin Funds Seeking
High Current Income and Stability of Principal
Adjustable Rate
Securities Fund
Adjustable U.S. Government Securities Fund
Short-Intermediate U.S. Government
Securities Fund
Franklin Funds for
Non-U.S. Investors
Tax-Advantaged High Yield Securities Fund
Tax-Advantaged International Bond Fund
Tax-Advantaged U.S. Government Securities Fund
Franklin Templeton Global Currency Funds
German Government
Bond Fund
Global Currency Fund
High Income Currency Fund
Hard Currency Fund
Franklin Money
Market Funds
Money Fund
Federal Money Fund
Tax-Exempt Money
Fund
California Tax-Exempt
Money Fund
New York Tax-Exempt
Money Fund
IFT U.S. Treasury Money
Market Portfolio
Franklin Fund for Corporations
Corporate Qualified
Dividend Fund
Franklin Tax-Deferred
Annuity
Franklin Valuemark
Franklin Templeton
Valuemark Income Plus
(an immediate annuity)
Fund Information: 1-800/292-9293
Account Services: 1-800/393-3001
To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
determined by the presence of a regular beeping tone.
*Two or more fund options available: long-term portfolio, intermediate-term
portfolio, a portfolio of insured municipal securities, and a high yield
portfolio (CA).
**The fund may invest up to 100% of its assets in bonds that pay interest
subject to the federal alternative minimum tax.
***Portfolio of insured municipal securities.
<PAGE>
Templeton Developing
Markets Trust
Principal Underwriter:
Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Account Services
1-800-393-3001
Fund Information
1-800-292-9293
This report must be preceded or accompanied by the prospectus of Templeton
Developing Markets Trust. 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.
[RECYLCED PAPER LOGO APPEARS HERE] TL11 A94 02/95
[MAP ART APPEARS HERE]
