TEMPLETON DEVELOPING MARKETS TRUST, N-30B-2, 1995-06-02

TEMPLETON DEVELOPING MARKETS TRUST
N-30B-2, 1995-06-02

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<PAGE>

Templeton Developing Markets Trust

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

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.

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

May 15, 1995

Dear Shareholder:

This update for the quarter ended March 31, 1995 includes your Fund's long-term
performance, a listing of its investments, and a brief discussion by Dr. Mark
Mobius on a topic of current interest. Please keep in mind that this summary is
one of four reports you will receive during the Fund's fiscal year.

Next quarter, you will receive the semi-annual report, which is more
comprehensive. It will include a discussion of the financial markets, and a
summary of the Fund's performance and investment direction during the fiscal
period. The portfolio manager's outlook and the Fund's financial statements and
investment portfolio will also be included.

If you have any questions regarding this report, you may call the Franklin
Templeton Fund Information Department, toll-free, at 1-800/292-9293.

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

Templeton Developing Markets Trust
Periods ended March 31, 1995

<TABLE>
<CAPTION>
Since
Inception
1-Year 3-Year (10/17/91)
<S> <C> <C> <C>
Average Annual
Total Return* -14.49% 9.22% 7.76%

Cumulative
Total Return** -9.25% 38.28% 37.38%
</TABLE>

*Average annual total 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 reductions by the Fund's manager increased the Fund's total
returns.

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.

Investing in developing 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. While short-term volatility can be disconcerting, declines of as
much as 40% to 50% are not unusual in emerging markets. For example, the Hong
Kong market has increased 1000% in the last 15 years, but has suffered nine
declines of more than 20% during that time.

<PAGE>

The Following Letter was
Written by Dr. Mobius After a
Recent Visit to Mexico City.

In Mexico, as in other emerging markets, significant political and social
changes are taking place which will have an inestimable impact on the overall
development of the economy. One party, the Partido Revolucionario Institucional
(PRI), has controlled the government since the 1920s. However, its position has
been weakened as a result of the on-going Zapatista uprising in Chiapas, the
unsolved murder of presidential candidate Luis Donaldo Colosio in March 1994,
and the September 1994 assassination of Jose Francisco Ruiz Massieu, the PRI's
secretary general.

In February 1995, Mexico's attorney general announced that one of the leaders in
charge of security on the day candidate Colosio was shot, had hired a former
colleague to assassinate Massieu. Even more shocking was the accusation by
Massieu's brother, Mario Ruiz Massieu, that the chain of command led back from
the gunman to a PRI deputy, arousing suspicion that others in Mexico's ruling
party might be involved. Then, in March of this year, Raul Salinas, brother of
former Mexican President Carlos Salinas, was arrested on suspicion of
masterminding Massieu's assassination. Since the families of former heads of
state have had an unspoken immunity for more than six decades, this was a brave
move for President Ernesto Zedillo and Attorney General Antonio Lozano, an
appointment from outside the PRI.

According to two economists I met in Mexico City this March, Mexico's currency
problems started in September 1994, when Massieu was assassinated. They
estimated that reserves fell from US$29 billion in September to US$17 billion in
October. But even though money was leaving Mexico at an astonishing rate, the
market continued to rely on the new government's ability to defend its currency
and cover its deficits.

When President Zedillo took office on December 1, 1994, the exchange rate was
US$1 = peso 3.438. His inauguration speech did nothing to allay the

<PAGE>

[MAP OF MEXICO APPEARS HERE]

market's fears that something was amiss. When he went to Chiapas on December 8,
he was not well received by the populace, and the rebels questioned the
qualifications of the newly inaugurated governor.

On Friday, December 16, the treasury minister stated that he would hike interest
rates before devaluing the peso. Two-to-three billion US dollars left the
country that day. At that time, the exchange rate was US$1 = peso 3.462. On
Monday, December 19, the outflow continued. By December 20, reserves were down
to US$9 billion. Finance Minister Serra and the Pacto Group, comprised of
business, labor, and government officials, held an emergency meeting and agreed
to raise the ceiling of the US$-to-peso trading band, from 3.4712 to 4.0016. The
next morning Serra went on radio and TV to say that this was not a devaluation.
With that, the panic was on. By evening, reserves had declined to US$3 billion.
On December 21, the exchange rate was US$1 = peso 3.977. The Pacto Group held
another meeting on December 22, and decided to float the currency. The exchange
rate shot to US$1 = peso 4.70 and ended the year at US$1 = peso 4.90. Between
December 1 and December 31, 1994, the peso had been devalued by 43%. The
Government was paralysed.

During this period, we witnessed the extreme reaction one would expect under
such conditions. The world was shocked by the devaluation, and the credibility
of the central bank was greatly damaged. Investors remembered that, just a few
months earlier, Mexican officials had assured them that such a devaluation was
out of the question. Some said they felt betrayed. Mexico had been praised
almost unanimously, and now market commentators

<PAGE>

questioned whether the Mexican financial system was sound enough to resist
pressures from the aftershocks of devaluation. Fears surfaced that US$25 billion
in peso-denominated Cetes (Treasury bills) or Tesobonos (US dollar-denominated
government obligations) maturing within six months would create a crisis,
threatening the remaining central bank reserves and credit lines from the
International Monetary Fund and the United States.

Why did so much go wrong in such a short time? I believe that overconsumption,
low domestic savings, an unfavorable trade balance and a huge, current account
deficit were the root causes. In my opinion, the Mexican government was overly
complacent about its large trade imbalance. The Salinas administration believed
that the imbalance was caused by companies importing capital goods, and that
these goods would eventually improve productivity, resulting in GDP growth and
increased exports. Instead, economic growth brought higher inflation and an
overvalued currency, making exports less competitive and leading to an even
larger trade imbalance.

An additional factor was Mexico's heavy reliance on foreign fixed income
portfolio inflows instead of direct foreign equity investments in hard assets.
Finally, the US government, multilateral institutions and others, did not issue
warnings which could have led to a more effective and orderly adjustment. Major
institutions were emphasising short-term profit opportunities and encouraging
short-term investments into Mexico in search of high profit margins.

What can we learn from the Mexican experience? For starters, it shows us that
global markets are increasingly impacted in the short term by rapid, dramatic
changes in other markets because international investors view those markets as
part of the global whole. As we have seen, investors all over the world reacted
to the Mexican situation. Securities markets in Brazil, Argentina and other
countries fell rapidly in sympathy with Mexico, despite fundamentally different
economic frameworks and experiences. In such cases investor psychology usually
dominates, and if many investors become bearish about Latin America, emerging
markets in

<PAGE>

general may turn down, even though the financial and economic realities may not
warrant it. Over the long term, however, we can expect to see significant
divergencies among different markets. Some will go up while others go down, and
it is important not to confuse the macroeconomic picture with the microeconomic
picture.

Another important point to remember is that often the best opportunities to
purchase stocks at bargain prices may arise when a country's debt position,
trade balance and other indicators seem disastrous. Taking advantage of such
opportunities, of course, requires considerable research, a willingness to take
risks and an ability to take a long view. Those who are impatient and afraid of
short-term movements should not invest in emerging markets such as Mexico.

Sincerely,

/s/ J. Mark Mobius

J. Mark Mobius, Ph.D.
President
Templeton Developing Markets Trust

<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited)

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<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES:
67.7%
- -------------------------------------------------------------------------------------------
Argentina: 2.6%
Banco de Galicia y
Buenos Aires SA, B Banking 1,179,550 $ 4,541,040
Banco Frances del Rio
de la Plata SA Banking 1,365,000 8,230,538
Ciadea SA Automobiles 110,000 566,472
Comercial de Plata SA Multi-Industry 2,429,470 5,320,273
Compania Naviera Perez
Companc SA, B Energy Sources 2,939,395 10,934,004
Industrias
Petroquimicas Koppers Chemicals 1,242,451 5,093,794
Molinos Rio de Plata
SA, B Food & Household Products 1,287,025 6,499,151
Nobleza Piccardo Sdad
Industrial Comercial y
Financial Multi-Industry 44,935 139,292
Sevel Argentina SA, C Automobiles 1,053,044 1,863,794
Transportadora de Gas
del Sur SA, B Energy Sources 535,254 1,016,932
YPF Sociedad Anonima,
ADR Energy Sources 295,000 5,605,000
Zanella Hermanos SA Automobiles 970,434 223,189
--------------
50,033,479
- -------------------------------------------------------------------------------------------
Bangladesh: 0.1%
Bangladesh Oxygen Ltd. Building Materials & Components 46,600 208,185
- -------------------------------------------------------------------------------------------
Bolivia: 0.1%
Compania Boliviana de
Energia Electricas SA Utilities-Electrical & Gas 114,200 2,740,800
- -------------------------------------------------------------------------------------------
Brazil: 7.1%
Banco Bradesco SA Banking 781,769,691 4,869,756
Banco Bradesco SA, pfd. Banking 465,833,041 3,134,916
Banco do Brasil SA Banking 61,191,000 646,623
Banco do Brazil SA,
pfd. Banking 206,111,120 2,134,477
Banespa-Banco do Estado
de Sao Paulo SA, pfd. Banking 545,215,200 3,214,283
Brasmotor SA, pfd. Multi-Industry 3,142,231 716,527
Cia Mesbla SA, pfd. Merchandising 54,637,000 5,409,002
Confab Industrial SA,
pfd. Industrial Components 2,302,680 2,817,517
Copene-Petroquimica do
Nordeste SA, A, pfd. Chemicals 8,394,650 5,920,142
Duratex SA, pfd. Forest Products & Paper 5,239,000 259,328
Eletrobras-Centrais
Eletricas Brasileiras
SA, B, pfd. Utilities-Electrical & Gas 129,534,847 24,783,085
Itausa-Investimentos
Itau SA, pfd. Multi-Industry 37,366,579 17,748,086
Light SA Utilities-Electrical & Gas 22,165,700 6,533,827
Mannesmann SA Machinery & Engineering 182,010 45,554
Mannesmann SA, pfd. Machinery & Engineering 2,417,912 739,628
Marcopolo SA, B, pfd. Automobiles 10,371,400 1,395,928
Petrobras-Petroleo
Brasileiro SA, pfd. Energy Sources 266,713,333 18,542,362
Refripar-Refrigeracao
Parana SA, pfd. Appliances & Household Durables 49,250,000 94,775
Telebras-
Telecomunicacoes
Brasileiras SA Telecommunications 480,495,294 11,170,580
</TABLE>

6
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------------
Brazil: (cont.)
Telebras-
Telecomunicacoes
Brasileiras SA, pfd. Telecommunications 394,151,973 $ 10,610,098
Telecomunicacoes do Rio
de Janeiro SA, pfd. Telecommunications 13,348,703 534,691
Telecomunicacoes de Sao
Paulo SA Telecommunications 11,830,023 1,381,705
Telecomunicacoes de Sao
Paulo SA, pfd. Telecommunications 26,157 2,706
Unibanco-Uniao de
Bancos Brasileiros SA,
pfd. Banking 118,744,186 2,615,278
Vale de Rio Doce, pfd. Metals & Mining 82,926,650 11,207,551
Varig SA, pfd. Transportation 318,800 851,079
--------------
137,379,504
- -------------------------------------------------------------------------------------------------
Chile: 0.2%
Antofagasta Holdings
PLC Metals & Mining 898,550 4,367,759
- -------------------------------------------------------------------------------------------------
China: 1.1%
China First Pencil Co.
Ltd., B Recreation, Other Consumer Goods 310,000 102,300
China Textile Machinery
Co. Ltd., B Machinery & Engineering 1,466,400 219,960
Chiwan Wharf Holdings
Ltd., B Transportation 370,000 168,682
Guangzhou Shipyard
International Co.
Ltd., H Machinery & Engineering 3,816,000 1,813,735
Luoyang Glass Co. Ltd.,
H Miscellaneous Materials & Commodities 2,113,000 983,808
Shandong Huaneng Power Utilities-Electrical & Gas 172,000 1,548,000
Shanghai Chlor-Alkali
Chemical Co. Ltd., B Chemicals 5,452,300 1,373,980
Shanghai Erfangji
Textile Machinery Co.
Ltd., B Machinery & Engineering 7,248,600 1,348,240
Shanghai Forever
Bicycle Co. Ltd., B Recreation, Other Consumer Goods 1,244,000 223,920
Shanghai Industrial
Sewing Machine Corp. Machinery & Engineering 3,573,700 1,014,931
Shanghai Jinqiao Export
Processing Zone
Development, B Real Estate 3,189,400 2,066,731
Shanghai Lian Hua Fibre
Corp., B Textiles & Apparel 665,300 172,313
Shanghai Lujiaxui
Finance & Trade Zn Dev
Stock Co. Ltd, B Real Estate 1,194,000 871,620
Shanghai Narcissus
Electric Appliances
Co. Ltd., B Appliances & Household Durables 670,000 167,500
Shanghai Outer Gaoqiao
Free Trade Zone
Development Co., B Real Estate 1,095,000 591,300
Shanghai Pechemical Co.
Ltd., H Chemicals 8,108,000 2,490,494
Shanghai Phoenix
Bicycle Co. Ltd., B Recreation, Other Consumer Goods 1,396,000 404,840
Shanghai Rubber Belt
Co. Ltd., B Industrial Components 600,480 93,675
Shanghai Steel Tube Co.
Ltd., B Machinery & Engineering 1,158,000 264,024
Shanghai Tyre & Rubber
Co. Ltd., B Industrial Components 1,554,000 435,120
Shanghai Wingsung
Stationery Co. Ltd., B Recreation, Other Consumer Goods 485,400 117,467
Shanghai Yaohua
Pilkington Glass, B Building Materials & Components 2,930,600 3,223,660
Shenzhen China Bicycles
Co. Ltd., B Recreation, Other Consumer Goods 1,272,000 505,049
</TABLE>

7
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
China: (cont.)
Shenzhen Gintian
Industrial Co. Ltd., B Multi-Industry 741,600 $ 330,900
Shenzhen Huafa
Electronics Co. Ltd.,
B Appliances & Household Durables 212,000 44,966
Shenzhen Petrochemical
(Group)
Shareholding Co. Ltd.,
B Chemicals 208,000 53,802
Shenzhen Properties &
Resources
Development Group
Ltd., B Real Estate 437,600 164,128
Shenzhen Tellus
Machinery &
Electronics
Co. Ltd., B Multi-Industry 224,000 60,838
Shenzhen Vanke Co.
Ltd., B Real Estate 462,000 181,645
Tsann Kuen Enterprise
Co. Ltd., B Electrical & Electronics 648,000 240,947
Zhuhai Sez Lizhu
Pharmaceutical, B Chemicals 796,800 365,835
--------------
21,644,410
- -------------------------------------------------------------------------------------------
Colombia: 0.1%
Promigas SA Multi-Industry 60,132 143,955
- -------------------------------------------------------------------------------------------
Czech Republic: 0.3%
CEZ, GDR Utilities-Electrical & Gas 94,000 3,924,500
CEZ (144A), GDS Utilities-Electrical & Gas 30,000 1,252,500
--------------
5,177,000
- -------------------------------------------------------------------------------------------
Greece: 4.2%
Alpha Credit Bank Banking 528,526 26,315,583
Alpha Leasing SA Financial Services 115,690 2,627,579
Delta Dairy SA, pfd. Food & Household Products 189,101 3,544,341
Elais Oleaginous
Products SA Food & Household Products 85,820 5,109,460
Ergo Bank SA Banking 284,220 11,744,835
Etba Leasing Financial Services 120,040 2,514,620
Fourlis Brothers Corp.
SA Appliances & Household Durables 301,060 3,983,153
Hellas Can-Container
Manufacturers Food & Household Products 208,290 3,628,426
Hellenic Bottling Co.
SA Food & Household Products 266,685 6,492,177
National Bank of Greece
SA Banking 129,105 6,035,338
Titan Cement Co. SA Building Materials & Components 216,110 7,529,301
Titan Cement Co. SA,
pfd. Building Materials & Components 7,100 185,367
X. Benrubi & Son SA Food & Household Products 220,900 1,471,043
--------------
81,181,223
- -------------------------------------------------------------------------------------------
Hong Kong: 17.2%
C.P. Pokphand Co. Ltd. Food & Household Products 21,065,000 6,266,102
Cheung Kong Holdings
Ltd. Multi-Industry 12,111,000 52,785,916
China Overseas Land &
Investment Ltd. Real Estate 15,873,000 3,161,461
</TABLE>

8
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- -----------------------------------------------------------------------------------------------
Hong Kong: (cont.)
China Pharmaceutical
Enterprise &
Investment Corp. Ltd. Health & Personal Care 2,101,000 $ 236,403
China Treasure
Telecomunications
Holdings Ltd. Electrical & Electronics 2,376,000 129,064
CNT Group Ltd. Multi-Industry 36,736,000 1,615,396
Cross Harbour Tunnel
Co. Ltd. Transportation 1,447,598 2,827,047
Dairy Farm
International Holdings
Ltd. Food & Household Products 6,278,603 8,039,080
Dickson Concepts
(International) Ltd. Merchandising 7,097,000 3,809,176
East Asiatic Co. Ltd. Wholesale & International Trade 2,976,000 427,232
Fairwood Holdings Ltd. Food & Household Products 5,024,000 539,307
Fortei Holdings Ltd. Merchandising 5,768,000 440,135
Fu Hui Jewellery Co.
Ltd. Recreation, Other Consumer Goods 4,808,000 298,479
Gold Peak Industries
Holdings Ltd. Electrical & Electronics 3,458,000 1,252,250
Goldlion Holdings Ltd. Textiles & Apparel 14,183,000 3,375,158
Great Wall Electronic
International Ltd. Electrical & Electronics 3,812,000 285,949
Hang Lung Development
Co. Ltd. Real Estate 17,486,000 26,685,825
Hang Lung Development
Co. Ltd., wts. Real Estate 1,399,100 213,520
Hong Kong Electric
Holdings Ltd. Utilities-Electrical & Gas 1,686,000 5,396,857
Hopewell Holdings Ltd. Construction & Housing 5,210,000 3,672,336
HSBC Holdings PLC Banking 3,875,515 43,732,370
IMC Holdings Ltd. Transportation 793,000 523,060
Jardine International
Motor Holdings Ltd. Automobiles 4,413,000 4,879,869
Jardine Matheson Hold-
ings Ltd. Multi-Industry 1,364,118 12,277,062
Jardine Strategic Hold-
ings Ltd. Multi-Industry 4,288,500 16,296,300
JCG Holdings Ltd. Banking 4,066,000 2,326,959
Joyce Boutique Holdings
Ltd. Merchandising 7,448,000 1,300,414
K Wah International
Holdings Ltd. Building Materials & Components 29,011,427 4,727,677
Lai Sun Development Co.
Ltd. Real Estate 38,046,000 4,969,796
Lai Sun Garment Inter-
national Ltd. Multi-Industry 3,227,000 3,505,794
Laws International
Holdings Ltd. Textiles & Apparel 7,054,000 1,213,376
Le Saunda Holdings Ltd. Merchandising 2,598,000 218,404
Leefung-Asco Printers
Holdings Ltd. Broadcasting & Publishing 940,000 148,319
LI & Fung Ltd. Merchandising 1,720,000 1,156,751
Linkful International
Holdings Ltd. Merchandising 1,600,000 124,159
Luks Industrial Co.
Ltd. Appliances & Household Durables 3,214,000 403,205
Ming Pao Enterprise
Corp. Ltd. Broadcasting & Publishing 3,363,000 2,044,245
New World Development
Co. Ltd. Real Estate 10,578,311 28,798,945
Peregrine Investments
Holdings Ltd. Financial Services 2,544,000 2,911,847
S. Megga International
Holdings Ltd. Electronic Components & Instruments 5,782,000 396,335
Semi-Tech Co. Ltd. Appliances & Household Durables 2,397,447 3,984,376
South Sea Development
Co. Ltd. Broadcasting & Publishing 1,115,000 56,240
Stelux Holdings Ltd. Multi-Industry 14,002,570 4,074,726
Sun Hung Kai & Co. Ltd. Financial Services 14,067,000 5,639,899
</TABLE>

9
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- --------------------------------------------------------------------------------------------
Hong Kong: (cont.)
Sun Hung Kai Properties
Ltd. Real Estate 5,169,900 $ 35,270,593
Swire Pacific Ltd., B Multi-Industry 5,117,500 5,691,994
Tian An China Invest-
ments Co. Ltd. Real Estate 17,792,000 3,037,434
Top Form International
Ltd. Textiles & Apparel 5,204,000 383,637
Tungtex (Holdings) Co.
Ltd. Textiles & Apparel 7,314,000 945,939
Vitasoy International
Holdings Ltd. Food & Household Products 2,098,000 766,535
Wai Kee Holdings Ltd. Construction & Housing 386,000 61,904
Wheelock & Co. Ltd. Multi-Industry 6,195,000 10,495,926
Wing Shan International
Ltd. Utilities-Electrical & Gas 6,442,000 783,171
Wo Kee Hong Holdings
Ltd. Merchandising 12,203,000 2,572,541
Yaohan Hongkong Corp.
Ltd. Merchandising 9,530,000 1,232,540
Yue Yuen Industrial
Holdings Ltd. Recreation, Other Consumer Goods 19,856,000 4,802,214
--------------
333,211,249
- --------------------------------------------------------------------------------------------
Hungary: 0.2%
Chinoin Pharmaceutical
& Chemical Works
Co. Ltd. Health & Personal Care 7,631 2,563,965
Fotex First Hungarian-
American Photo-
Service Co. Multi-Industry 361,400 513,717
Ibusz Leisure & Tourism 94,260 844,702
--------------
3,922,384
- --------------------------------------------------------------------------------------------
India: 0.9%
Aban Loyd Chiles
Offshore Ltd. Energy Sources 245,000 1,091,835
ATV Project India Ltd. Machinery & Engineering 1,732,000 2,274,232
Essar Shipping Ltd. Transportation 773,500 1,477,320
Flex Industries Ltd. Food & Household Products 20,000 140,060
Ganesh Benzoplast Ltd. Chemicals 169,100 578,649
Garden Silk Mills Ltd. Textiles & Apparel 229,600 475,060
Industrial Credit &
Investment Corp. of
India Financial Services 2,723,150 10,618,681
Videocon International
Ltd. Appliances & Household Durables 404,000 1,398,536
--------------
18,054,373
- --------------------------------------------------------------------------------------------
Indonesia: 1.5%
PT Anwar Sierad, fgn. Food & Household Products 574,000 339,835
PT Aqua Golden
Mississippi, fgn. Beverages & Tobacco 893,250 1,117,560
PT Astra International,
fgn. Multi-Industry 122,100 177,312
PT Bank International
Indonesia, fgn. Financial Services 365,000 884,774
PT Bank PDFCI, fgn. Financial Services 591,000 369,705
PT BBL Dharmala
Finance, fgn. Financial Services 476,500 787,779
PT Branta Mulia, fgn. Industrial Components 1,386,000 2,105,630
PT Charoen Pokphand
Indonesia, fgn. Food & Household Products 1,299,500 2,409,707
</TABLE>

10
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- ---------------------------------------------------------------------------------------
Indonesia: (cont.)
PT Cipendawa Farm
Enterprises, fgn. Food & Household Products 65,000 $ 82,775
PT Duta Pertiwi
Nusantura, fgn. Chemicals 687,500 199,676
PT Eratex Djaja, fgn. Textiles & Apparel 567,000 247,017
PT Ficorinvest Bank, fgn. Financial Services 459,000 228,167
PT Gadjah Tunggal, fgn. Industrial Components 140,000 150,134
PT Gajah Surya Multi
Finance, fgn. Financial Services 1,866,200 917,256
PT Ganda Wangsa Utama,
fgn. Textiles & Apparel 1,022,000 365,326
PT Hadtex Indosyntec,
fgn. Textiles & Apparel 2,918,000 1,401,631
PT Hotel Prapatan, fgn. Leisure & Tourism 1,185,000 661,863
PT Intan Wijaya Chemical
Industry, fgn. Chemicals 1,490,500 499,497
PT Inter-Pacific Bank,
fgn. Financial Services 738,000 758,445
PT Jakarta International
Hotel &
Development, fgn. Real Estate 719,000 610,411
PT Japfa Comfeed
Indonesia, fgn. Food & Household Products 3,839,500 3,173,849
PT Metrodata Electronic,
fgn. Electrical & Electronics 345,500 231,568
PT Multibreeder Adirama,
fgn. Food & Household Products 572,500 895,331
PT Multipolar Corp., fgn. Electrical & Electronics 346,000 181,658
PT Polysindo Eka Perkasa,
fgn. Textiles & Apparel 6,699,000 6,585,255
PT Pudjiadi Prestige
Ltd., fgn. Real Estate 625,000 383,992
PT Sarasa Nugraha, fgn. Textiles & Apparel 2,567,000 2,867,516
PT Sari Husada, fgn.,
zero, conv., 6/21/96 Corporate Bond 124,560,000* 43,969
PT Summarecon Agung, fgn. Real Estate 400,500 386,989
PT Unggul Indah Corp.,
fgn. Chemicals 200,000 183,199
--------------
29,247,826
- ---------------------------------------------------------------------------------------
Israel: 0.2%
Bank Hapoalim BM Banking 624,348 901,158
Clal Industries Ltd. Multi-Industry 175,178 1,023,249
Discount Investment Corp. Multi-Industry 20,732 1,298,029
The First International
Bank of Israel Banking 4,977 569,359
--------------
3,791,795
- ---------------------------------------------------------------------------------------
Italy: 2.1%
Banco Ambrosiano Veneto
SPA Banking 199,000 622,204
Banco Ambrosiano Veneto
SPA, di Risp Banking 2,138,000 2,908,886
Istituto Mobiliare
Italiano SPA Banking 1,069,000 5,538,821
Italmobiliare SPA Multi-Industry 500,260 8,490,160
Italmobiliare SPA, di
Risp Multi-Industry 788,350 7,235,770
Italmobiliare SPA, wts. Multi-Industry 162,360 170,805
Mediobanca/Italmobiliare,
6.00%, conv., 12/31/99 Corporate Bond 2,922,480,000* 1,597,359
</TABLE>

11
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Italy: (cont.)
Sirti SPA Construction & Housing 1,912,000 $ 12,324,899
Teleco Cavi SPA Telecommunications 1,000 4,185
Teleco Cavi SPA, di
Risp Telecommunications 557,000 1,258,692
--------------
40,151,781
- -------------------------------------------------------------------------------------------
Korea: 1.0%
Central Investment &
Finance Corp. Financial Services 249,934 5,211,679
Choil Aluminium Mfg.
Co. Ltd. Metals & Mining 74,592 2,830,651
Dae Yu Co. Textiles & Apparel 22,000 464,448
Dae Yu Co. Ltd., new Textiles & Apparel 10,584 215,217
Daegu Bank Co. Ltd. Banking 270,730 3,453,815
Daehan Synthetic Fiber
Co. Ltd. Textiles & Apparel 9,600 1,740,707
Hae In Corp. Ltd. Merchandising 21,788 1,182,382
Hankook Cosmetics Co. Health & Personal Care 52,400 2,158,166
Samseong Publishing Co.
Ltd. Business & Public Services 10,300 226,784
Yuhwa Corp. Textiles & Apparel 23,310 1,301,206
--------------
18,785,055
- -------------------------------------------------------------------------------------------
Malaysia: 2.5%
Federal Flour Mills
Bhd. Food & Household Products 1,777,000 4,949,763
Malayawata Steel Bhd. Metals & Mining 1,626,000 3,244,291
Malayawata Steel Bhd.,
fgn. Metals & Mining 1,491,000 2,974,931
Malaysian International
Shipping Corp. Bhd.,
fgn. Transportation 5,291,000 15,260,490
Oriental Holdings Bhd. Automobiles 300,000 1,564,599
Oriental Holdings Bhd.,
fgn. Automobiles 1,853,160 9,664,841
Perlis Plantations Bhd. Multi-Industry 1,228,600 4,028,992
Perlis Plantations
Bhd., fgn. Multi-Industry 1,430,000 4,689,451
Shangri-La Hotels Bhd. Leisure & Tourism 2,092,202 2,405,495
--------------
48,782,853
- -------------------------------------------------------------------------------------------
Mexico: 4.1%
Cemex SA, B Building Materials & Components 1,494,750 3,272,855
Cifra SA, C Merchandising 100,000 121,381
DESC Sociedad de
Formento Inustrial SA,
A Multi-Industry 500,000 1,013,960
DESC Sociedad de
Formento Inustrial SA,
B Multi-Industry 1,024,108 1,932,336
DESC Sociedad de
Formento Inustrial SA,
C Multi-Industry 188,000 378,486
Grupo Financiero
Banamex Accival SA, B Banking 147,000 172,814
Grupo Financiero
Banamex Accival SA, C Banking 1,276,000 1,462,572
Grupo Financiero
Banamex Accival SA, L Banking 1,536,000 1,706,416
Grupo Financiero
Bancomer SA, C Banking 26,690,000 4,706,539
Grupo Financiero Serfin
SA, B Banking 1,911,000 1,376,032
</TABLE>

12
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Mexico: (cont.)
Grupo Industrial Alfa
SA, A Multi-Industry 1,603,982 $ 11,502,472
Telefonos de Mexico SA,
ADR, L Telecommunications 1,557,100 44,377,350
Telefonos de Mexico SA,
L Telecommunications 181,000 255,342
Transportacion Maritima
Mexicana SA de CV,
ADR, A Transportation 35,142 158,139
Transportacion Maritima
Mexicana SA de CV,
ADR, L Transportation 71,320 410,090
Tubos de Acero de
Mexico SA Metals & Mining 353,560 1,259,931
Vitro SA Food & Household Products 1,997,000 5,652,053
--------------
79,758,768
- -------------------------------------------------------------------------------------------
Pakistan: 0.3%
Bank of Punjab Banking 2,126,620 1,981,916
Exide Pakistan Ltd. Energy Equipment & Services 198,400 405,172
Khadim Ali Sham Bukhari
& Co. Ltd. Financial Services 3,009 5,072
Kohinoor Industries
Ltd. Textiles & Apparel 358,720 191,866
National Development
Leasing Corp. Financial Services 570,632 531,804
Pakistan Electron Ltd. Appliances & Household Durables 237,406 469,439
Trust Modaraba Financial Services 2,427,000 1,121,094
Union Bank Ltd. Banking 830,025 686,102
--------------
5,392,465
- -------------------------------------------------------------------------------------------
Philippines: 3.3%
A. Soriano Corp., B Multi-Industry 16,537,254 1,883,587
Dizon Copper Silver
Mines Inc. Metals & Mining 141,371,500 423,023
Philex Minning Corp., B Metals & Mining 15,467,095 1,642,259
Philippine Commercial
International Bank
Inc. Banking 224,032 1,556,979
Philippine Commercial
International Bank,
rts. Banking 56,008 43,249
Philippine Long
Distance Telephone Co. Telecommunications 600,575 36,334,788
Philippine National
Bank Banking 1,460,426 12,348,776
RFM Corp. Food & Household Products 5,414,050 8,152,431
Robinson's Land Corp.,
B Real Estate 1,202,000 153,151
Sime Darby Pilipinas
Inc. Industrial Components 662,758 1,177,099
--------------
63,715,342
- -------------------------------------------------------------------------------------------
Poland: 0.1%
Bank Przemyslowo-
Handlowy SA Banking 20,000 450,288
Elektrim SA Utilities-Electrical & Gas 310,000 1,027,166
--------------
1,477,454
- -------------------------------------------------------------------------------------------
</TABLE>

13
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- -----------------------------------------------------------------------------------------------
Portugal: 4.5%
Banco Chemical Portugal
SA Banking 166,015 $ 1,734,993
Banco Comercial
Portugues SA Banking 1,501,552 20,851,470
Banco Comercial
Portugues, 8.75%,
conv., 5/21/02 Corporate Bond 8,780,000* 11,898,683
Banco Espirito Santo e
Comercial de Lisboa Banking 860,600 14,631,376
Banco Portugues de
Investimento SA Banking 984,480 17,282,197
Banco Totta & Acores SA Banking 287,990 6,068,642
Cel-Cat Fabrica
Nacional de
Conductores Electricos
SA Electronic Components & Instruments 64,581 1,243,758
Compta-Equipamentos e
Servicos de
Informatica SA Business & Public Services 125,000 1,571,038
Espirito Santo
Financial Holding SA,
ADR Banking 736,200 7,638,075
Portuguesa Radio
Marconi SA, br. Telecommunications 116,000 4,991,011
--------------
87,911,243
- -----------------------------------------------------------------------------------------------
Singapore: 1.1%
Acma Ltd. Electrical & Electronics 60,000 184,485
Acma Ltd., fgn. Electrical & Electronics 232,000 713,340
Chemical Industries
(Far East) Ltd. Chemicals 440,000 1,402,763
First Capital Corp.
Ltd., fgn. Real Estate 112,000 312,632
G.P. Batteries
International Ltd. Electrical & Electronics 37,000 99,900
Hai Sun Hup Group Ltd. Transportation 528,000 501,254
Hinds Hotels
International Ltd. Leisure & Tourism 335,000 386,858
Hotel Properties Ltd.,
fgn. Leisure & Tourism 309,000 512,264
Inchcape Bhd., fgn. Wholesale & International Trade 513,000 1,657,301
Inter-Roller
Engineering Ltd., fgn. Industrial Components 262,000 77,960
Isetan (Singapore)
Ltd., fgn. Merchandising 325,000 690,755
Jaya Holdings Ltd. Transportation 4,119,000 3,997,896
Jaya Holdings Ltd.,
3.50%, conv., 9/07/97 Transportation 823,800* 461,071
Jaya Holdings Ltd.,
3.00%, conv., 8/31/98 Transportation 508,800* 688,493
Jaya Holdings Ltd.,
wts. exp. 8/31/98 Transportation 318,071 185,908
Jaya Holdings Ltd.,
wts. exp. 10/09/99 Transportation 164,760 116,727
Osprey Maritime Ltd. Transportation 399,000 1,197,000
Prima Ltd. Food & Household Products 983,000 3,934,786
Singapore Bus Service
Ltd., fgn. Transportation 328,200 2,092,667
TIBS Holdings Ltd. Transportation 788,800 2,246,529
TIBS Holdings Ltd.,
wts. Transportation 236,640 168,490
Wing Tai Holdings Ltd.,
fgn. Real Estate 355,000 570,917
--------------
22,199,996
- -----------------------------------------------------------------------------------------------
</TABLE>

14
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- --------------------------------------------------------------------------------------------
South Africa: 1.2%
Amalgamated Bank of
South Africa Banking 2,225,160 $ 7,334,326
BTR Dunlop Ltd. Industrial Components 38,000 350,279
Del Monte Royal Foods
Ltd. Food & Household Products 119,000 207,751
Engen Ltd. Energy Sources 739,602 5,784,597
First National Bank
Holdings Ltd. Banking 797,200 5,043,737
Nedcor Ltd. Banking 241,200 2,947,626
Rembrandt Group Ltd. Multi-Industry 135,200 1,095,196
--------------
22,763,512
- --------------------------------------------------------------------------------------------
Spain: 4.3%
Banco Bilbao Vizcaya SA Banking 1,341,200 34,126,148
Bankinter SA Banking 382,750 29,821,533
Endesa-Empresa Nacional
de Electricidad SA Utilities-Electrical & Gas 319,500 13,633,347
Union Electrica-Fenosa
SA Utilities-Electrical & Gas 1,380,267 5,224,401
--------------
82,805,429
- --------------------------------------------------------------------------------------------
Sri Lanka: 0.1%
Associated Motorways
Ltd. Automobiles 281,088 392,018
Ceylon Holiday Resorts
Ltd. Recreation, Other Consumer Goods 144,600 229,431
Colombo Dock Yard Ltd. Transportation 40,000 14,351
Hayleys Ltd. Multi-Industry 5,060 20,583
Kelani Tyres Ltd. Industrial Components 700 283
Lanka Ceramic Ltd. Building Materials & Components 309,100 398,284
Lanka Orix Leasing Co.
Ltd. Financial Services 819 4,138
United Motor Lanka Ltd. Automobiles 884,840 491,826
--------------
1,550,914
- --------------------------------------------------------------------------------------------
Thailand: 1.1%
American Standard
Sanitaryware Public
Co. Ltd. Health & Personal Care 5,300 88,244
American Standard
Sanitaryware Public
Co. Ltd., fgn Health & Personal Care 34,000 517,766
Asia Fibre Public Co.
Ltd. Textiles & Apparel 79,000 58,548
Asia Fibre Public Co.
Ltd., fgn. Textiles & Apparel 864,500 789,898
Ayudhya Insurance
Public Co. Ltd. Insurance 30,000 202,234
Ayudhya Insurance
Public Co. Ltd., fgn. Insurance 209,000 1,408,893
Bangkok Bank Public Co.
Ltd. Banking 500,000 3,634,518
Bangkok Land Co. Ltd.,
fgn. Real Estate 802,000 1,156,183
Bank of Ayudhya Ltd. Banking 127,000 508,000
Bank of Ayudhya Ltd.,
fgn. Banking 342,400 1,376,552
</TABLE>

15
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Thailand: (cont.)
Charoen Pokphand
Feedmill Public Co.
Ltd. Food & Household Products 127,000 $ 799,391
Chareon Pokphand
Feedmill Public Co.
Ltd., fgn. Food & Household Products 338,500 2,295,614
Hua Thai Manufacturing
Public Co. Ltd. Textiles & Apparel 35,000 83,858
Karat Sanitaryware
Public Co. Ltd., fgn. Building Materials & Components 141,000 489,563
Kian Gwan (Thailand)
Public Co. Ltd., fgn. Real Estate 96,000 295,310
Padaeng Industry Public
Co. Ltd., fgn. Metals & Mining 357,110 362,548
Royal Ceramic Industry Building Materials & Components 53,200 85,876
Saha Pathanapibul Co.
Ltd., fgn. Health & Personal Care 284,400 565,913
Saha Union Public Co.
Ltd. Textiles & Apparel 456,000 601,827
Saha Union Public Co.
Ltd., fgn. Textiles & Apparel 1,912,080 2,737,089
Sanyo Universal
Electric Public Co.
Ltd., fgn. Electrical & Electronics 6,800 138,071
Textile Prestige Corp.
Ltd., fgn. Textiles & Apparel 66,000 122,619
Thai Asahi Glass Public
Co. Ltd. Building Materials & Components 40,700 90,077
Thai Asahi Glass Public
Co. Ltd., fgn. Building Materials & Components 32,000 70,822
Thai Farmers Bank
Public Co. Ltd. Banking 74,500 484,061
Thai Rayon Public Co.
Ltd. Textiles & Apparel 18,500 156,264
Thai Rayon Public Co.
Ltd., fgn. Textiles & Apparel 11,000 94,589
Thai Wacoal Public Co.
Ltd. Textiles & Apparel 14,000 85,848
Thai Wacoal Public Co.
Ltd., fgn. Textiles & Apparel 99,000 733,706
Thai Wah Public Co.
Ltd. Food & Household Products 168,400 207,722
Thai Wah Public Co.
Ltd., fgn. Food & Household Products 22,600 27,877
United Motor Works
(Siam) Public Co. Ltd. Machinery & Engineering 30,400 176,536
United Standard
Terminal Public Co.
Ltd., fgn. Transportation 212,100 232,556
--------------
20,678,573
- -------------------------------------------------------------------------------------------
Turkey: 5.3%
Akbank AS Banking 41,704,444 11,612,019
Akbank AS, new Banking 20,852,222 5,558,945
Akcimento Ticaret AS Building Materials & Components 2,759,000 4,053,507
Aksigorta AS Insurance 18,780,000 4,895,261
Alcatel Teletas
Endustri Tic AS Telecommunications 4,152,000 1,180,664
Anadolu Anonim Turk
Sigorta Sirketi Insurance 1,043,000 173,009
Arcelik AS Appliances & Household Durables 49,300,736 11,565,812
Bagfas Bandirma Gubre
Fabrikalari AS Chemicals 9,437,000 3,410,290
Bekoteknik AS Appliances & Household Durables 13,722,000 2,763,910
Borusan AS Industrial Components 932,000 828,199
Celik Halat ve Sanayii
ve Ticaret AS Building Materials & Components 5,243,200 795,177
Cimentas Izmir Cimento
Fabrikasi TAS Building Materials & Components 3,752,000 2,222,749
Cimsa Cimento Sanayi ve
Ticaret AS Building Materials & Components 1,268,000 3,755,924
Compagnie Financiere
Ottomane SA Banking 52,500 2,020,310
Cukurova Elektrik AS Utilities-Electrical & Gas 20,637,500 5,012,663
</TABLE>

16
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES
(CONT.)
- ------------------------------------------------------------------------------------------------
Turkey: (cont.)
Dardanel Onentas Food & Household Products 837,000 $ 1,368,555
Eregli Demir ve Celik
Fabrikalari AS Metals & Mining 109,096,750 15,252,863
Finans Bank AS, br. Banking 3,319,999 310,758
Finans Bank, rts. Banking 3,319,999 116,043
Izocam Ticaret ve
Sanayii AS, br. Building Materials & Components 2,493,650 664,776
Kartonsan Forest Products & Paper 11,308,500 6,297,387
Koc Holding AS Multi-Industry 3,049,140 2,276,017
Koc Yatirim ve Sanayii
Mamullesi Pazarlanca AS Multi-Industry 4,212,444 3,942,927
Kordsa Kord Bezi Sanayi
ve Ticaret AS Industrial Components 173,800 107,081
Marshall Boya ve Vernik
Sanayii AS Industrial Components 4,480,140 1,220,891
Metas Izmir Metalurji
Fabrikalari AS Metals & Mining 10,907,000 1,201,838
Otosan Otomobil Sanayii
AS Automobiles 7,016,000 1,662,559
Peg Profilo Elektrikli
Gerecler Sanayii AS Appliances & Household Durables 372,098 46,733
Petkim Petrokimya
Holding AS Chemicals 408,000 261,043
Tekstil Bankasi AS, new Banking 53,681 2,862
Tekstil Bankasi
Tekstilbank AS, br. Banking 53,682 3,880
Tofas Turk Otomobil
Fabrikasi AS Automobiles 599,700 511,592
Trakya Cam Sanayii AS Miscellaneous Materials & Commodities 2,474,596 351,838
Trakya Cam Sanayii AS,
new Miscellaneous Materials & Commodities 2,474,596 351,838
Turk Demir Dokum, br. Appliances & Household Durables 5,935,996 1,265,971
Turkiye Garanti Bankasi
AS Banking 15,938,088 5,287,517
Vakif Finansal Kiralama
AS Financial Services 6,057,000 574,123
------------
102,927,531
- ------------------------------------------------------------------------------------------------
Venezuela: 0.9%
Banco Provincial SAICA Banking 34,958 66,061
Banco Venezolano de
Credito Banking 15,540 525,789
Ceramica Carabobo CA, A Building Materials & Components 286,800 188,325
Ceramica Carabobo CA,
A, ADR Building Materials & Components 130,000 85,363
Ceramica Carabobo CA, B Building Materials & Components 1,924,658 1,254,163
Consolidada Carabobo, A Building Materials & Components 5,684,664 648,251
Consolidada Carabobo, B Building Materials & Components 9,797,772 1,178,679
Electricidad de Caracas Utilities-Electrical & Gas 7,847,968 7,080,873
Fabrica Nacional de
Cementos CA Building Materials & Components 1,221,000 137,707
HL Boulton & Co. SA Multi-Industry 12,912,748 427,189
Industrias Ventane Utilities-Electrical & Gas 3,960,414 1,389,619
Inmuebles y Valores
Caracas CA Building Materials & Components 1,015,000 814,035
Manufacturera de
Aparatos Domesticos SA Appliances & Household Durables 545,225 34,671
Mavesa SA, ADR Food & Household Products 50,000 167,669
</TABLE>

17
<PAGE>

Templeton Developing Markets Trust
Investment Portfolio, March 31, 1995 (unaudited) (cont.)

* Principal amount in currency of country indicated.

18
<PAGE>

The Franklin Templeton Group

- --------------------------------------------------------------------------------
Literature Request -- Call today for a free descriptive brochure and prospectus
on any of the funds listed below. The prospectus contains more complete
information, including fees, charges and expenses, and should be read carefully
before investing or sending money.

<TABLE>
<S> <C> <C>
TEMPLETON FUNDS Massachusetts*** German Government Bond Fund
American Trust Michigan*** Global Government Income Fund
American Government Securities Fund Minnesota*** Investment Grade Income Fund
Developing Markets Trust Missouri U.S. Government Securities Fund
Foreign Fund New Jersey
Global Infrastructure Fund New York* FRANKLIN FUNDS SEEKING HIGH CURRENT
Global Opportunities Trust North Carolina INCOME AND STABILITY OF PRINCIPAL
Global Rising Dividends Fund Ohio*** Adjustable Rate Securities Fund
Growth Fund Oregon Adjustable U.S. Government Securities
Income Fund Pennsylvania Fund
Japan Fund Tennessee** Short-Intermediate U.S. Government
Money Fund Texas Securities Fund
Real Estate Securities Fund Virginia
Smaller Companies Growth Fund Washington** FRANKLIN FUNDS FOR NON-U.S. INVESTORS
World Fund Tax-Advantaged High Yield Securities
FRANKLIN FUNDS Fund
FRANKLIN FUNDS SEEKING CAPITAL GROWTH Tax-Advantaged International Bond Fund
SEEKING TAX-FREE INCOME California Growth Fund Tax-Advantaged U.S. Government
Federal Intermediate Term DynaTech Fund Securities Fund
Tax-Free Income Fund Equity Fund
Federal Tax-Free Income Global Health Care Fund FRANKLIN TEMPLETON INTERNATIONAL
Fund Gold Fund CURRENCY FUNDS
High Yield Tax-Free Income Growth Fund Global Currency Fund
Fund International Equity Fund Hard Currency Fund
Insured Tax-Free Income Fund*** Pacific Growth Fund High Income Currency Fund
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Small Cap Growth Fund FRANKLIN MONEY MARKET FUNDS
FRANKLIN STATE-SPECIFIC FUNDS California Tax-Exempt Money Fund
SEEKING TAX-FREE INCOME FRANKLIN FUNDS SEEKING Federal Money Fund
Alabama GROWTH AND INCOME IFT U.S. Treasury Money Market
Arizona* Balance Sheet Investment Fund Portfolio
Arkansas** Convertible Securities Fund Money Fund
California* Equity Income Fund New York Tax-Exempt Money Fund
Colorado Global Utilities Fund Tax-Exempt Money Fund
Connecticut Income Fund
Florida* Premier Return Fund FRANKLIN FUND FOR CORPORATIONS
Georgia Rising Dividends Fund Corporate Qualified Dividend Fund
Hawaii** Strategic Income Fund
Indiana Utilities Fund FRANKLIN TEMPLETON VARIABLE ANNUITIES
Kentucky Franklin Valuemark
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Maryland HIGH CURRENT INCOME Plus (an intermediate annuity)
AGE High Income Fund
</TABLE>

Toll-free 1-800/DIAL BEN (1-800/342-5236)
* Two or more fund options available: Long-term portfolio, intermediate-term
portfolio, a portfolio of 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.

19
<PAGE>

TEMPLETON
DEVELOPING MARKETS
TRUST

PRINCIPAL UNDERWRITER:

Franklin Templeton
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628

Account Services
1-800-354-9191

Sales Information
1-800-292-9293

This report must be
preceded or accompanied
by the prospectus of
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.

To ensure the highest
quality of service,
telephone calls to or
from our service de-
partments may be moni-
tored, recorded and ac-
cessed. These calls can
be determined by the
presence of a regular
beeping tone.

[LOGO APPEARS HERE] TL11 PF95 05/95

TEMPLETON
DEVELOPING
MARKETS
TRUST

First Quarter Report
March 31, 1995

[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]