<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.
- --------------------------------------------------------------------------------
November 15, 1995
Dear Shareholder:
This update for the quarter ended September 30, 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 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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Templeton Developing Markets Trust
Periods ended September 30, 1995
Since Since
Inception Inception
One-Year Three-Year (10/17/91) (5/1/95)
<S> <C> <C> <C> <C>
Average Annual
Total Return/1/
Class I Shares -10.95% 13.68% 9.01% ---
Aggregate
Total Return/2/
Class II Shares --- --- --- 2.86%
Cumulative
Total Return/3/
Class I Shares -5.49% 55.75% 49.28% ---
Class II Shares --- --- --- 4.89%
</TABLE>
1. Average annual total return represents the average annual change in value of
an investment over the specified periods. The figures reflect the deduction of
the current maximum 5.75% initial sales charge for Class I shares. See note
below.
2. Aggregate total return represents the change in value of an investment over
the period indicated and reflects the deduction of the 1.00% initial sales
charge and 1.00% contingent deferred sales charge (CDSC) for Class II shares,
applicable to shares redeemed within the first 18 months of investment. Since
Class II shares have been in existence for less than one year, average annual
total returns are not provided. See note below.
3. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 5.75% initial sales
charge for Class I shares, or the 1.00% initial sales charge and 1.00% CDSC for
Class II shares, applicable to shares redeemed within the first 18 months of
investment. See note below.
Note: All total return calculations reflect the deduction of a proportional
share of Fund expenses on an annual basis and assume that dividend and capital
gains distributions, if any, were reinvested when paid. From October 17, 1991 to
December 31, 1992, expense reductions by the Fund's manager increased the Class
I share total returns. Class II shares, which the Fund began offering on
May 1, 1995, are subject to different fees and expenses, which will affect their
performance. Please see the prospectus for more details regarding Class I and
Class II shares.
Investment return and principal value will fluctuate with market conditions,
currencies and the economic, political and social climates of countries where
investments are made. Because of these factors, 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 economic,
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 763% in the last 15 years, but has
suffered six declines of more than 20% during that time.*
*Source: Bloomberg. Based on quarterly percentage change over 15 years ended
June 30, 1995.
1
<PAGE>
The Following Letter Was
Written by Dr. Mobius After
a Recent Visit to Lebanon.
Beirut, Lebanon
Visitors can't help being struck by the beautiful setting of this ancient
Mediterranean city. During my time here, I've thought not so much about the
horrors of the recent past, as the bright prospects of the present and future.
Today the city is fast rebuilding from the damage of the bloody 15-year civil
war that ended in 1990. It is clearly intent on taking back its historic place
as the commercial and financial hub of the Middle East and, as the regional
peace process intensifies, we should see many investment opportunities develop
here.
It's easy to sense that the country and its capital are coming back to life
through the world-famous energy of Lebanese businessmen and women. Construction
is under way everywhere in the once-devastated downtown business district, so
it's no surprise that these businesses are busy in an economy whose real gross
domestic product (GDP) grew 8.5% last year and is expected to grow 6% this year.
The cement and glass industries, which will need to raise capital through public
listings to fuel their expansion, are expected to be well represented when the
planned reopening of the Beirut Stock Exchange takes place later this year.
Early indications are that the Lebanese authorities may allow foreign
participation from the outset on the revived exchange. They also are taking the
important step of requiring tough disclosure standards, such as a minimum of
three years of audited financial statements, from firms wanting to list. Early
French and British technical assistance is helping put the market and its
regulators on solid footing, and, fortunately, there will not be foreign
exchange restrictions. We have also been glad to see that a modern custody and
settlement system called MIDCLEAR is being created in advance of the market's
reopening. Given these positive steps and the traditional vibrancy of the
private sector, I believe that Lebanon's market capitalization may grow in a few
years to become larger than the capitalization of Morocco, Egypt or Jordan.
The bulk of the listings will be local, but there is also interesting talk of
making Beirut a regional market with many cross-listings from other Middle
Eastern countries. In time, this city may become an Arab Hong Kong, acting as
both the regional financial nucleus of, and the window
2
<PAGE>
[ART APPEARS HERE]
into, a much larger economy that has historically been under rigid state control
and off limits to most foreign investors. Syria, which has four times the
population of Lebanon, could benefit substantially from close interaction with
the Western financial markets that Beirut will be developing in the years ahead.
The Syrian government has recently been making moves towards privatization and
other market-friendly reforms, and could see its ability to attract foreign
investment brighten considerably if it follows the Palestinians and Jordan in
signing a comprehensive peace treaty with Israel.
The reopening of the Beirut market should be only the latest in a string of
impressive developments on the Lebanese investment scene. In early July, for
example, Prime Minister Rafik Hariri's government successfully placed its second
Eurobond issue -- an unrated US$300 million, five-year bond. The first issue
came last October, raising US$400 million. It all adds up to an impressive sign
of investor confidence in this shrewd businessman and the stability he has
brought since coming to power in October 1992.
Perhaps an even better indicator is the estimated US$4 billion in returned
flight capital that expatriate Lebanese have poured back into their country in
the past two years. That means a lot in a country this small, and some estimates
indicate that up to ten times the amount is still held abroad. We will be
watching for signs that it is on its way home, joining the estimated 200,000
expatriate Lebanese who have returned to their homeland from abroad in the past
two years. In my experience, no one knows an emerging market's investment
climate better than its own people, and I have yet to watch one of these
countries take off before its own money returned from the safer haven it had
sought overseas when times were tough at home.
Services have always been the strength of Lebanon's economy, currently
accounting for about 70% of GDP. Tourism and financial services are two of the
largest
3
<PAGE>
growth areas in this sector. Despite the legacy of war, a flourishing private
banking industry has, fortunately, survived intact, as have the beautiful
beaches, mountains, ancient ruins, and other tourist sites. They should start
drawing increasing revenues from domestic, regional and even some European
visitors in the near future and could be the source of considerable new
development.
There have also been signs of strength on the equity markets. Chief of these was
the US$650 million public offering in late 1993 for shares in SOLIDERE, a US$1.8
billion public-private company created to manage the rebuilding of downtown
Beirut, one of the Middle East's biggest construction projects. This heavily
oversubscribed offering was restricted to Lebanese and other Arab investors.
Eighteen months after the offering the shares were trading on Beirut's new
secondary market at about a 30% premium to their offering price. SOLIDERE's
management is putting the US$650 million it raised into an ambitious 25-year
infrastructure campaign to rehabilitate the city's central district. It is
targeting 1.9 million square meters of new residential units and another 1.5
million square meters in office space.
Meanwhile, the government is also embarking on a second, more broadly defined
program to rebuild the national infrastructure. Known as Horizon 2000, it
envisions total expenditures from both public and private sources of at least
US$14.3 billion by the year 2002. The World Bank has already begun supporting
the program with loans totaling more than US$100 million for irrigation
rehabilitation and solid waste management, and has others in preparation worth a
cumulative $170 million planned for power sector restructuring, road
rehabilitation, and the upgrading of water supply systems. The European
Investment Bank, Arab aid institutions funded by the wealthy Gulf states, and
other official sources are also channeling funds into the early stages of the
program. It certainly should provide ample growth opportunities for all sides of
the Lebanese construction industry in the coming years.
If SOLIDERE is included in the initial set of companies traded on the new stock
exchange, Beirut's market could soon become one of the most active in the Middle
East -- a region that is fast catching the eye of foreign portfolio investors
worldwide. Performance in the Middle East markets has been good so far this
year. For example, as of late July, the Jordanian market showed 18% gains in US
dollar terms for the year. That made it the fourth best in the developing world.
The leader was Turkey, with 32.1% gains for the year. North Africa is also
coming on strong, with financial markets in Morocco and Egypt
4
<PAGE>
attracting attention, and Tunisia in the process of opening its bourse to
foreign investment.
Common ties of language, religion and culture may offer new opportunities for
business cooperation among these countries and others in the Arab world, as
governments follow the global trend and become more private-sector oriented.
Even more exciting as a growing theme are the new political openings for the
thriving Israeli business community to partner with Arab companies in seeking to
make common use of the region's abundant financial, human and natural resources.
Still, many uncertainties mark the future of Lebanon. There will probably
continue to be political questions, at least until the next Lebanese
presidential election. A Syrian-Israeli peace treaty would also be a big help to
the business climate in a country that still has 35,000 Syrian troops present
and a volatile Israeli-occupied security zone in the south. And on the economic
side, we also need to watch the recent trends towards falling central bank
foreign exchange reserves and balance of payments deficits, which could put
pressure on the local currency if the Lebanese government spends as much as it
intends to on infrastructure rehabilitation.
Risks such as these are inherent in emerging markets, and investors who cannot
tolerate short-term fluctuations in search of potential long-term gains should
not be involved in them. But we see Lebanon as an exciting story that may
provide opportunities for the Fund's shareholders in the coming years, and we
will be there with the same disciplined, value-oriented approach that we use in
all the other countries we visit.
Sincerely,
/s/ J. Mark Mobius
J. Mark Mobius, Ph.D.
President
Templeton Developing Markets Trust
5
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
LONG TERM SECURITIES: 81.4%
- -------------------------------------------------------------------------------------------------
Argentina: 4.4%
Aluar Aluminio
Argentino SA, B Miscellaneous Materials & Commodities 56,669 $ 413,704
Astra Cia Argentina de
Petroleo SA Energy Sources 626,000 1,089,294
Atanor Cia Nacional
Para la Industria
Quimica SA, D Chemicals 637,233 1,236,294
Banco de Galicia y
Buenos Aires SA, B Banking 2,723,813 12,339,490
Banco Del Sud SA, B Banking 371,343 2,153,897
Banco Frances del Rio
de la Plata SA Banking 1,365,000 9,760,238
Capex SA, A Utilities Electrical & Gas 90,080 653,113
Central Costanera SA, B Utilities Electrical & Gas 292,552 760,673
Central Termoelectricia
de
Buenos Aires Utilities Electrical & Gas 35,418 40,733
Ciadea SA Automobiles 967,998 3,775,379
Citicorp Equity
Investment SA, A Financial Services 255,443 868,550
Comercial de Plata SA Multi-Industry 6,471,800 15,209,490
Compania Naviera Perez
Companc SA, B Energy Sources 4,815,935 21,046,688
Industrias
Petroquimicas
Koppers (IPAKO) Chemicals 1,612,631 6,450,847
Juan Minetti SA Building Materials & Components 193,668 553,918
Molinos Rio de Plata
SA, B Food & Household Products 1,709,481 10,428,356
Nobleza Piccardo Sdad
Industrial Comercial y
Financial Beverages & Tobacco 62,692 244,511
Sevel Argentina SA, C Automobiles 1,584,291 2,376,555
Transportadora de Gas
del Sur SA, B Energy Sources 1,524,506 3,201,623
YPF Sociedad Anonima,
ADR Energy Sources 341,000 6,138,000
Zanella Hermanos SA Automobiles 931,434 167,667
--------------
98,909,020
- -------------------------------------------------------------------------------------------------
Bolivia: 0.1%
Compania Boliviana de
Energia Electricas SA Utilities Electrical & Gas 44,300 1,295,775
- -------------------------------------------------------------------------------------------------
Brazil: 10.7%
Banco Bradesco SA Banking 977,854,898 8,156,914
Banco Bradesco SA, pfd. Banking 474,245,060 4,528,230
Banco do Brasil SA Banking 104,142,792 1,507,970
Banco do Brazil SA,
pfd. Banking 553,801,120 9,093,948
Banespa--Banco do
Estado de Sao Paulo
SA, pfd. Banking 1,138,950,650 7,588,622
Brasmotor SA, pfd. Multi-Industry 16,292,231 4,171,139
Cia Mesbla SA, pfd. Merchandising 75,117,000 1,229,553
</TABLE>
6
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- -----------------------------------------------------------------------------------------
Brazil: (cont.)
Confab Industrial SA,
pfd. Industrial Components 2,302,680 $ 1,618,798
Copene-Petroquimica do
Nordeste SA, A, pfd. Chemicals 8,383,550 5,409,965
Duratex SA, pfd. Forest Products & Paper 223,541,800 11,786,344
Eletrobras-Centrais
Eletricas Brasileiras
SA, B, pfd. Utilities Electrical & Gas 160,885,847 49,630,595
Itausa-Investimentos
Itau SA, pfd. Multi-Industry 37,366,579 23,524,419
Light SA Utilities Electrical & Gas 18,458,000 6,875,390
Mannesmann SA Machinery & Engineering 3,182,010 901,467
Mannesmann SA, pfd. Machinery & Engineering 5,062,562 1,577,652
Marcopolo SA, B, pfd. Automobiles 14,371,400 2,412,851
Petrobras-Petroleo
Brasileiro SA, pfd. Energy Sources 301,653,333 31,812,787
Refripar-Refrigeracao
Parana Sa, pfd. Appliances & Household Durables 632,250,000 1,658,491
Telebras-
Telecomunicacoes
Brasileiras SA Telecommunications 584,255,294 23,418,029
Telebras-
Telecomunicacoes
Brasileiras SA, pfd. Telecommunications 394,151,973 18,776,034
Telerj-Telecomunicacoes
do Rio de Janeiro SA,
pfd. Telecommunications 13,348,703 1,162,523
Telesp-Telecomunicacoes
de Sao Paulo SA, pfd. Telecommunications 26,157 4,290
Unibanco-Uniao de
Bancos Brasileiros SA,
pfd. Banking 133,744,186 4,490,650
Vale de Rio Doce, pfd. Metals & Mining 107,487,650 18,101,640
-----------
239,438,301
- -----------------------------------------------------------------------------------------
Chile: 0.2%
Antofagasta Holdings
PLC Metals & Mining 898,550 4,797,111
- -----------------------------------------------------------------------------------------
China: 1.7%
China First Pencil Co.
Ltd., B Recreation, Other Consumer Goods 372,000 110,856
China Merchants Shekou
Port Service Co. Ltd.,
B Transportation 1,000,000 453,975
China Southern Glass
Co. Ltd., B Multi-Industry 1,097,200 596,019
China Textile Machinery
Co. Ltd., B Machinery & Engineering 2,115,100 325,725
Chiwan Wharf Holdings
Ltd., B Transportation 3,020,000 1,425,689
Foshan Electrical and
Lighting Co.
Ltd., B Appliances & Household Durables 790,000 577,299
Guangzhou Shipyard
International Co.
Ltd., H Machinery & Engineering 5,972,000 1,931,011
Luoyang Glass Co. Ltd.,
H Misc Materials & Commodities 1,997,000 800,691
</TABLE>
7
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------
China: (cont.)
Qing Ling Motors Co.
Ltd., H Automobiles 3,000,000 $ 690,663
Shandong Huaneng Power Utilities Electrical & Gas 284,000 2,520,500
Shanghai Chlor-Alkali
Chemical
Co. Ltd., B Chemicals 10,105,300 2,890,116
Shanghai Erfangji
Textile Machinery Co.
Ltd., B Machinery & Engineering 7,973,460 1,355,488
Shanghai Industrial
Sewing Machine Corp. Machinery & Engineering 3,573,700 657,561
Shanghai Jin Jiang
Tower Co. Ltd., B Leisure & Tourism 5,136,000 1,664,064
Shanghai Jinqiao Export
Processing Zone
Development, B Real Estate 5,299,000 3,020,430
Shanghai Lian Hua Fibre
Corp., B Textiles & Apparel 798,360 182,026
Shanghai Lujiaxui
Finance & Trade Zn Dev
Stock Co Ltd, B Real Estate 9,713,100 6,624,334
Shanghai Narcissus
Electric Appliances
Co. Ltd., B Appliances & Household Durables 734,500 196,846
Shanghai Pechemical Co.
Ltd., H Chemicals 13,464,000 3,918,155
Shanghai Refrigerator
Compressor Co. Ltd., B Industrial Components 240,008 116,644
Shanghai Rubber Belt
Co. Ltd., B Industrial Components 600,480 97,878
Shanghai Steel Tube Co.
Ltd., B Machinery & Engineering 1,273,800 180,880
Shanghai Tyre & Rubber
Co. Ltd., B Industrial Components 2,012,000 627,744
Shanghai Vacuum
Electron Devices Co.
Ltd., B Appliances & Household Durables 1,086,000 258,468
Shanghai Wingsung
Stationery Co.
Ltd., B Recreation, Other Consumer Goods 485,400 111,642
Shanghai Yaohua
Pilkington Glass, B Building Materials & Components 3,373,000 3,575,380
Shenzhen China Bicycles
Co. (Holdings) Ltd., B Recreation, Other Consumer Goods 1,272,000 419,520
Shenzhen Gintian
Industrial Co. Ltd., B Multi-Industry 892,320 401,629
Shenzhen Huafa
Electronics Co. Ltd.,
B Appliances & Household Durables 212,000 44,557
Shenzhen Konka
Electronic Group Co.
Ltd., B Appliances & Household Durables 1,000,000 620,821
Shenzhen Petrochemical
(Group) Shareholding
Co. Ltd., B Chemicals 249,600 72,636
Shenzhen Properties &
Resources Develop.
(Group) Ltd., B Real Estate 1,631,960 350,383
Shenzhen Tellus
Machinery &
Electronics Co. Ltd.,
B Multi-Industry 246,400 50,990
Shenzhen Vanke Co.
Ltd., B Real Estate 2,513,900 942,912
</TABLE>
8
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------
China: (cont.)
Tsann Kuen Enterprise
Co. Ltd., B Appliances & Household Durables 648,000 $ 125,716
Zhuhai Sez Lizhu
Pharmaceutical, B Chemicals 1,196,800 386,978
----------
38,326,226
- ---------------------------------------------------------------------------------------
Colombia: 0.1%
Promigas SA Multi-Industry 61,311 152,444
- ---------------------------------------------------------------------------------------
Czech Republic: 0.4%
CEZ, GDR Utilities Electrical & Gas 144,000 5,994,000
CEZ, GDS, 144a Utilities Electrical & Gas 30,000 1,248,750
SPT Telecom AS Telecommunications 20,000 1,922,639
----------
9,165,389
- ---------------------------------------------------------------------------------------
Greece: 4.4%
Alpha Credit Bank Banking 528,526 32,862,895
Alpha Leasing SA Financial Services 250,690 6,396,250
Delta Dairy SA, pfd. Food & Household Products 189,101 3,328,729
Elais Oleaginous Co. Food & Household Products 171,640 5,615,837
Ergo Bank SA Banking 284,220 13,766,145
Etba Leasing Financial Services 120,040 2,264,906
Fourlis Brothers Corp.
SA Appliances & Household Durables 301,060 3,485,686
Hellas Can--Container
Manufacturers Food & Household Products 208,290 4,072,909
Hellenic Bottling Co.
SA Food & Household Products 217,385 7,317,634
Intracom SA Electrical & Electronics 91,000 2,466,209
National Bank of Greece
SA Banking 129,105 6,563,207
Titan Cement Co., reg. Building Materials & Components 246,410 10,555,900
Titan Cement Co., reg.
pfd. Building Materials & Components 7,100 208,555
X. Benrubi & Son SA Food & Household Products 220,900 1,089,344
----------
99,994,206
- ---------------------------------------------------------------------------------------
Hong Kong: 18.1%
C.P. Pokphand Co. Ltd. Food & Household Products 8,805,000 3,587,277
Cheung Kong Holdings
Ltd. Multi-Industry 12,111,000 65,945,795
China Overseas Land &
Investment Ltd. Real Estate 17,075,000 3,135,986
China Treasure
Telecommunications
Holdings Ltd. Electrical & Electronics 2,376,000 112,167
CNT Group Ltd. Multi-Industry 37,771,789 1,929,699
Cross Harbour Tunnel
Co. Ltd. Transportation 1,459,598 2,831,715
Dairy Farm
International Holdings
Ltd. Multi-Industry 9,676,893 8,418,897
</TABLE>
9
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- -------------------------------------------------------------------------------------------
Hong Kong: (cont.)
Dickson Concepts
(International) Ltd. Merchandising 9,030,000 $6,540,347
East Asiatic Co. Ltd. Wholesale & International Trade 2,976,000 361,814
Fairwood Holdings Ltd. Food & Household Products 8,792,000 784,624
Fortei Holdings Ltd. Merchandising 5,768,000 365,550
Fu Hui Jewellery Co.
Ltd. Recreation, Other Consumer Goods 4,808,000 202,103
Gold Peak Industries
(Holdings) Ltd. Electrical & Electronics 3,458,000 1,654,824
Goldlion Holdings Ltd. Textiles & Apparel 14,183,000 7,796,183
Great Wall Electronic
International Ltd. Electrical & Electronics 3,812,000 310,612
Hang Lung Development
Co. Ltd. Real Estate 17,628,000 28,385,556
Hang Lung Development
Co. Ltd., wts. Real Estate 1,399,100 224,386
Hongkong Electric
Holdings Ltd. Utilities Electrical & Gas 2,178,000 7,281,879
Hopewell Holdings Ltd. Construction & Housing 13,102,539 8,896,922
HSBC Holdings PLC Banking 4,020,530 55,900,640
Hualing Holdings Ltd. Appliances & Household Durables 1,332,000 215,347
IMC Holdings Ltd. Transportation 793,000 512,824
Jardine International
Motor Holdings Ltd. Automobiles 6,429,000 6,984,699
Jardine Matheson
Holdings Ltd. Multi-Industry 2,125,588 14,347,719
Jardine Strategic
Holdings Ltd. Multi-Industry 5,349,562 15,620,721
Jardine Strategic
Holdings Ltd., wts. Multi-Industry 536,062 192,982
JCG Holdings Ltd. Banking 3,827,000 2,846,108
Joyce Boutique Holdings
Ltd. Merchandising 7,448,000 1,685,787
K Wah International
Holdings Ltd. Building Materials & Components 29,011,427 4,390,156
K Wah International
Holdings Ltd., wts. Building Materials & Components 2,901,142 --
KTP Holdings Ltd. Recreation, Other Consumer Goods 8,000,000 455,269
Lai Sun Development Co.
Ltd. Real Estate 43,650,000 5,137,486
Lai Sun Garment
International Ltd. Multi-Industry 4,127,000 4,216,835
Laws International
Holdings Ltd. Textiles & Apparel 7,054,000 930,595
Le Saunda Holdings Ltd. Merchandising 2,598,000 191,531
Leefung-Asco Printers
Holdings Ltd. Broadcasting & Publishing 940,000 164,129
LI & Fung Ltd. Merchandising 118,160 90,167
Linkful International
Holdings Ltd. Merchandising 1,600,000 124,164
Luks Industrial Co.
Ltd. Appliances & Household Durables 3,214,000 428,162
Ming Pao Enterprise
Corp. Ltd. Broadcasting & Publishing 3,363,000 1,576,739
New World Development
Co. Ltd. Real Estate 10,703,250 42,222,167
Peregrine Investments
Holdings Ltd. Financial Services 2,544,000 3,816,806
S. Megga International
Holdings Ltd. Electronic Components & Instruments 5,782,000 366,437
Semi -Tech Co. Ltd. Appliances & Household Durables 3,083,967 4,646,871
South Sea Development
Co. Ltd. Broadcasting & Publishing 1,115,000 40,379
Stelux International
Holdings Ltd. Multi-Industry 14,002,570 3,712,672
Sun Hung Kai & Co. Ltd. Financial Services 17,472,000 5,197,512
</TABLE>
10
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 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 $41,958,589
Swire Pacific Ltd., B Multi-Industry 5,117,500 6,354,101
Tian An China
Investments Co. Ltd. Real Estate 23,396,000 3,298,322
Top Form International
Ltd., 144a Textiles & Apparel 5,204,000 410,575
Tungtex (Holdings) Co.
Ltd. Textiles & Apparel 6,914,000 777,989
Vitasoy International
Holdings Ltd. Food & Household Products 2,474,000 1,039,939
Wai Kee Holdings Ltd. Construction & Housing 9,386,000 1,128,986
Wheelock & Co. Ltd. Multi-Industry 10,613,000 15,854,230
Wing Shan International
Ltd. Utilities Electrical & Gas 6,442,000 791,534
Wo Kee Hong Holdings
Ltd. Merchandising 16,443,000 3,785,525
Yaohan Hongkong Corp.
Ltd. Merchandising 9,530,000 616,294
Yue Yuen Industrial
Ltd. Recreation, Other Consumer Goods 19,690,000 5,475,316
-----------
406,272,640
- -----------------------------------------------------------------------------------------
Hungary: 0.4%
Chinoin Pharmaceutical
& Chemical Works Co.
Ltd. Health & Personal Care 9,831 2,907,776
Fotex First Hungarian-
American Photo-Service Multi-Industry 1,950,400 2,271,180
Gedeon Richter Ltd. Multi-Industry 45,000 832,500
Ibusz Leisure & Tourism 94,260 591,031
Ibusz, new Leisure & Tourism 31,420 184,189
OTP Bank, GDR Banking 370,000 2,924,004
Pick Szeged RT, GDR Food & Household Products 11,000 555,500
-----------
10,266,180
- -----------------------------------------------------------------------------------------
India: 1.2%
Aban Loyd Chiles
Offshore Ltd. Energy Sources 245,000 974,945
ATV Project India Ltd. Machinery & Engineering 1,732,000 1,672,012
Bharat Petroleum Corp.,
Ltd. Energy Sources 570,000 4,570,081
DCW Ltd. Chemicals 500,000 722,181
Dr. Reddys Laboratories
Ltd. Health & Personal Care 94,200 810,800
Essar Shipping Ltd. Transportation 773,500 912,012
Flex Industries Ltd. Food & Household Products 20,000 93,147
Ganesh Benzoplast Ltd. Chemicals 159,100 370,491
Garden Silk Mills Ltd. Textiles & Apparel 229,600 257,179
Grasim Industries Ltd
Ord INR10 Multi-Industry 170,000 2,956,522
Indian Rayon and
Industries Ltd. Multi-Industry 52,000 740,339
Industrial Credit &
Investment Corp. of
India Ltd. Financial Services 3,339,250 9,154,024
</TABLE>
11
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------
India: (cont.)
Oriental Bank of
Commerce Banking 74,600 $ 131,388
Reliance Industries
Ltd. Chemicals 266,000 2,148,386
Videocon International
Ltd. Appliances & Household Durables 404,000 1,030,096
----------
26,543,603
- ---------------------------------------------------------------------------------------
Indonesia: 2.2%
PT Anwar Sierad, fgn. Food & Household Products 1,515,500 836,184
PT Aqua Golden
Mississippi, fgn. Beverages & Tobacco 511,225 383,616
PT Astra International,
fgn. Multi-Industry 122,100 242,529
PT Bank Dagang Nasional
Indonesia, fgn. Multi-Industry 800,000 732,730
PT Bank PDFCI, fgn. Banking 623,000 453,741
PT Barito Pacific
Timber, fgn. Forest Products & Paper 9,446,000 6,983,911
PT BBL Dharmala
Finance, fgn. Financial Services 953,000 904,414
PT Bimantara Citra,
fgn. Multi-Industry 4,898,000 3,945,641
PT Branta Mulia, fgn. Industrial Components 1,386,000 1,544,758
PT Charoen Pokphand
Indonesia, fgn. Food & Household Products 2,355,000 5,054,596
PT Cipendawa Farm
Enterprises, fgn. Food & Household Products 65,000 69,935
PT Duta Anggada Realty,
fgn. Real Estate 635,500 445,313
PT Duta Pertiwi
Nusantura, fgn. Chemicals 687,500 197,252
PT Eratex Djaja, fgn. Textiles & Apparel 567,000 218,991
PT Ficorinvest Bank,
fgn. Financial Services 459,000 455,860
PT Gadjah Tunggal, fgn. Industrial Components 5,845,500 3,870,338
PT Gajah Surya Multi
Finance, fgn. Financial Services 1,866,200 895,825
PT Ganda Wangsa Utama,
fgn. Textiles & Apparel 1,022,000 360,892
PT Hadtex Indosyntec,
fgn. Textiles & Apparel 2,918,000 1,577,819
PT Hotel Prapatan, fgn. Leisure & Tourism 1,185,000 1,242,275
PT Intan Wijaya
Chemical
Industry, fgn. Chemicals 1,490,500 411,195
PT Inter-Pacific Bank,
fgn. Banking 738,000 586,361
PT Jakarta
International Hotel &
Development, fgn. Real Estate 899,500 1,002,533
PT Japfa Comfeed
Indonesia, fgn. Food & Household Products 3,839,500 2,118,462
PT Metrodata
Electronic, fgn. Electrical & Electronics 345,500 236,383
PT Multibreeder
Adirama, fgn. Food & Household Products 858,750 473,819
PT Multipolar Corp.,
fgn. Electrical & Electronics 346,000 164,180
PT Polysindo Eka
Perkasa, fgn. Textiles & Apparel 13,398,000 7,688,104
PT Pudjiadi Prestige
Ltd., fgn. Real Estate 762,500 538,512
PT Sarasa Nugraha, fgn. Textiles & Apparel 2,567,000 1,713,788
PT Sari Husada, zero,
6/21/96 Corporate Bond 124,560,000* 43,435
</TABLE>
12
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- ----------------------------------------------------------------------------------
Indonesia: (cont.)
PT Sinar Mas Multi Artha,
fgn. Multi-Industry 3,121,500 $2,962,359
PT Sumalindo Lestari
Jaya, fgn. Forest Products & Paper 10,000 9,049
PT Summarecon Agung, fgn. Real Estate 400,500 282,851
PT Unggul Indah Corp.,
fgn. Chemicals 220,000 182,079
----------
48,829,730
- ----------------------------------------------------------------------------------
Israel: 0.5%
Agis Industries Ltd. Health & Personal Care 7,152 63,505
Bank Hapoalim BM Banking 1,164,348 1,981,621
Clal Industries Ltd. Multi-Industry 347,178 2,283,685
Discount Investment Corp. Multi-Industry 81,732 5,362,055
Super Sol Ltd. Merchandising 18,398 378,132
The First International
Bank of Israel Banking 16,977 2,105,318
----------
12,174,316
- ----------------------------------------------------------------------------------
Italy: 1.9%
Banco Ambrosiano Veneto
SPA, di Risp Banking 2,138,000 2,755,202
Istituto Mobiliare
Italiano SPA Banking 1,069,000 6,382,842
Italmobiliare SPA Multi-Industry 520,260 9,185,291
Italmobiliare SPA, di
Risp, conv. Multi-Industry 906,100 8,254,641
Italmobiliare SPA, wts. Multi-Industry 162,360 139,453
Mediobanca/Italmobiliare,
6.00%,
conv., 12/31/99 Corporate Bond 2,922,480,000* 1,644,201
Sirti SPA Construction & Housing 2,018,500 12,776,949
Teleco Cavi SPA Telecommunications 1,000 3,721
Teleco Cavi SPA, di Risp Telecommunications 557,000 1,416,248
----------
42,558,548
- ----------------------------------------------------------------------------------
Korea (South): 1.8%
Boram Bank Co. Ltd. Banking 360,000 5,857,850
Central Investment &
Finance Corp. Financial Services 187,994 4,184,714
Choil Aluminium Mfg. Co.
Ltd. Metals & Mining 54,592 1,733,982
Choil Aluminum
Manufacturing Co. Ltd.,
new Metals & Mining 8,734 271,729
Dae Duck Electronics Co.
Ltd. Electrical & Electronics 14,270 668,732
Dae Yu Co. Ltd., new Textiles & Apparel 3,058 62,099
Dae Yu Co. Ltd. Textiles & Apparel 10,584 214,932
Daegu Bank Co. Ltd. Banking 347,730 6,036,162
Daegu Bank Co. Ltd., new Banking 59,068 986,902
Daehan Synthetic Fiber
Co. Ltd. Textiles & Apparel 16,650 2,319,123
</TABLE>
13
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------
Korea (South): (cont.)
Hae In Corp. Ltd. Merchandising 21,788 $1,647,629
Hankook Cosmetics Co.
Ltd. Health & Personal Care 52,400 1,950,846
Kyong Nam Bank Banking 152,000 1,881,697
Kyung Dong Boiler Co.
Ltd. Energy Equipment & Services 31,060 1,536,423
Shinsung Industries Co.
Ltd. Electrical & Electronics 40,000 1,585,525
Ssangyong Oil Refining
Co. Ltd. Energy Equipment & Services 200,430 5,635,626
Tong Yang Investment
and Finance
Co. Ltd. Financial Services 121,000 2,488,675
Yuhwa Textiles & Apparel 23,310 1,420,083
----------
40,482,729
- ---------------------------------------------------------------------------------------
Malaysia: 2.2%
Federal Flour Mills
Bhd. Food & Household Products 1,777,000 5,570,810
Malayawata Steel Bhd. Metals & Mining 3,044,000 6,180,095
Malaysian International
Shipping Corp. Bhd.,
fgn. Transportation 5,291,000 15,902,488
Oriental Holdings Bhd. Automobiles 300,000 1,504,777
Oriental Holdings Bhd.,
fgn. Automobiles 1,753,160 8,793,717
Perlis Plantations Bhd. Multi-Industry 1,228,600 3,912,739
Perlis Plantations
Bhd., fgn. Multi-Industry 1,430,000 4,554,140
Shangri--La Hotels
(Malaysia) Bhd. Leisure & Tourism 2,092,202 2,157,167
----------
48,575,933
- ---------------------------------------------------------------------------------------
Mexico: 7.0%
Cemex SA, B Building Materials & Components 2,685,750 10,734,581
Cifra SA, C Merchandising 10,024,111 11,626,712
DESC SA, A Multi-Industry 500,000 1,880,878
DESC SA, B Multi-Industry 1,024,108 3,852,444
DESC SA, C Multi-Industry 188,000 707,210
Grupo Financiero
Banamex
Accival SA, B Banking 7,679,000 14,563,621
Grupo Financiero
Banamex
Accival SA, L Banking 5,090,750 9,032,491
Grupo Financiero
Bancomer
SA de CV, B Banking 35,846,000 10,731,326
Grupo Financiero
Bancomer
SA de CV, L Banking 11,224,518 3,166,792
Grupo Financiero Serfin
SA, B Banking 5,831,500 4,295,933
Grupo Industrial Alfa
SA, A Multi-Industry 1,593,982 20,736,756
Telefonos de Mexico SA,
L Telecommunications 181,000 289,940
</TABLE>
14
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- ------------------------------------------------------------------------------------------
Mexico: (cont.)
Telefonos de Mexico SA,
L, ADR Telecommunications 1,908,100 $60,582,175
Vitro SA Food & Household Products 2,396,400 6,362,854
-----------
158,563,713
- ------------------------------------------------------------------------------------------
Pakistan: 0.6%
Bank of Punjab Banking 2,126,620 1,713,792
DG Khan Cement Co. Building Materials & Components 1,100,000 1,622,856
Engro Chemical Chemicals 150,000 732,903
Exide Pakistan Ltd. Energy Equipment & Services 18,400 26,854
Fauji Fertilizer Co.
Ltd. Chemicals 1,071,300 2,115,850
Khadim Ali Sham Bukhari
& Co. Ltd. Financial Services 203,009 238,315
Kohinoor Industries
Ltd. Textiles & Apparel 358,720 136,575
National Development
Leasing Corp. Financial Services 918,853 670,515
Pakistan Electron Ltd. Appliances & Household Durables 337,406 626,243
Pakistan Telecom Corp.
PTC Telecommunications 4,726,000 5,484,773
Trust Modaraba Financial Services 2,427,000 635,270
Union Bank Ltd. Banking 830,025 684,698
-----------
14,688,644
- ------------------------------------------------------------------------------------------
Philippines: 3.8%
A Soriano Corp. Multi-Industry 20,166,567 2,322,000
Belle Corp. Financial Services 70,000,000 11,955,479
Dizon Copper Silver
Mines Inc. Metals & Mining 71,371,500 184,900
Keppel Philippine
Holdings Inc., B Machinery & Engineering 455,100 209,603
Philex Minning Corp., B Metals & Mining 16,921,095 2,208,088
Philippine Commercial
International Bank
Inc. Banking 232,840 2,100,073
Philippine Long
Distance Telephone
Co., ADR Telecommunications 650,575 43,181,916
Philippine National
Bank Banking 1,541,336 16,120,286
RFM Corp. Food & Household Products 27,070,250 7,168,863
Sanitary Wares
Manufacturing Corp., br. Business & Public Services 6,923 2,352
Sime Darby Pilipinas
Inc. Industrial Components 659,658 556,994
-----------
86,010,554
- ------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- --------------------------------------------------------------------------------------------
Poland: 0.4%
Bank Przemyslowo-
Handlowy SA Banking 46,070 $ 1,610,177
Bank Rozwoju Eksportu
SA Banking 15,000 262,130
Bank Slaski SA W
Katowicach Banking 20,000 1,208,882
Elektrim Towarzystwo
Handlowe SA Utilities Electrical & Gas 873,622 3,232,976
Warta SA Insurance 74,000 1,780,016
Wielkopolski Bank
Kredytowy SA Banking 698,903 1,666,792
-----------
9,760,973
- --------------------------------------------------------------------------------------------
Portugal: 4.7%
Banco Chemical
(Portugal) Banking 221,015 2,247,435
Banco Comercial
Portugues SA Banking 1,864,552 24,778,637
Banco Comercial
Portugues, 8.75%,
conv., 5/21/02 Corporate Bond 8,780,000* 11,771,266
Banco Espirito Santo e
Comercial
de Lisboa Banking 1,499,045 20,491,047
Banco Fomento Exterior Banking 92,300 800,093
Banco Portugues de
Investimento SA Banking 1,093,480 15,931,545
Banco Totta & Acores SA Banking 836,990 16,185,044
Cel-Cat Fabrica
Nacional de
Conductores Electricos
SA Electronic Components & Instruments 64,581 1,162,690
Compta-Equipamentos e
Servicos de
Informatica SA Business & Public Services 125,000 1,187,738
Equipamento Servico
Informatica Compta,
new Business & Public Services 25,000 229,213
Espirito Santo
Financial Holding
SA, ADR Banking 863,200 10,142,600
Portucel Industrial
Empresa Product de
Celulose SA Forest Products & Paper 100,000 740,815
Sociedade Portuguesa de
Celulose SA Forest Products & Paper 37,000 880,776
-----------
106,548,899
- --------------------------------------------------------------------------------------------
Singapore: 1.4%
Acma Ltd. Electrical & Electronics 877,000 3,235,594
Chemical Industries
(Far East) Ltd. Chemicals 660,000 1,623,331
First Capital Corp.
Ltd., fgn. Real Estate 112,000 305,383
G.P. Batteries
International Ltd. Electrical & Electronics 37,000 103,600
Hai Sun Hup Group Ltd. Transportation 1,534,000 1,040,274
Hinds Hotels
International Ltd. Leisure & Tourism 784,000 909,065
Hotel Properties Ltd.,
fgn. Leisure & Tourism 309,000 458,180
Hour Glass Ltd. Merchandising 913,000 821,251
</TABLE>
16
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------
Singapore: (cont.)
Inchcape Bhd., fgn. Wholesale & International Trade 922,000 $2,941,588
Inter Roller
Engineering Ltd., wts. Industrial Components 65,500 23,705
Isetan (Singapore)
Ltd., fgn. Merchandising 364,000 764,835
Jaya Holdings Ltd. Transportation 3,056,000 3,672,354
Jaya Holdings Ltd., ln.
stk., 3.5%,
conv., 9/7/97 Corporate Bond 723,800* 447,605
Jaya Holdings Ltd.,
3.00%,
conv. ln. stk.,
8/31/98 Corporate Bond 508,800* 822,375
Jaya Holdings Ltd.,
wts. Transportation 164,760 130,257
Jaya Holdings Ltd.,
wts. Transportation 318,071 257,050
Natsteel Ltd., fgn. Metals & Mining 1,360,000 2,819,396
Osprey Maritime Ltd. Transportation 399,000 889,770
Prima Ltd. Food & Household Products 983,000 3,695,748
Resources Development
Corp. Ltd. Building Materials & Components 186,000 692,762
Singapore Bus Service
Ltd., fgn. Transportation 328,200 2,168,011
TIBS Holdings Ltd. Transportation 788,800 1,995,559
Tibs Holdings Ltd.,
wts. Transportation 236,640 192,904
WBL Corp. Ltd. Multi-Industry 22,000 52,874
Wing Tai Holdings Ltd.,
fgn. Real Estate 355,000 603,725
----------
30,667,196
- ---------------------------------------------------------------------------------------
Slovak Republic: 0.1%
Slovenske Lodenice Machinery & Engineering 509 27,457
- ---------------------------------------------------------------------------------------
South Africa: 1.0%
BTR Dunlop Ltd. Industrial Components 192,100 355,083
Del Monte Royal Foods
Ltd. Food & Household Products 1,324,800 1,904,621
Engen Ltd. Energy Sources 1,560,102 9,185,238
First National Bank
Holdings Ltd. Banking 797,200 5,566,810
Nedcor Ltd. Banking 193,196 2,380,727
Palabora Mining Co.
Ltd. Metals & Mining 2,000 31,218
Rembrandt Group Ltd. Multi-Industry 312,200 2,607,544
Sun International
(Bophuthatswana) Ltd. Leisure & Tourism 22,300 143,505
----------
22,174,746
- ---------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- -----------------------------------------------------------------------------------------
Spain: 4.3%
Banco Bilbao Vizcaya Banking 1,341,200 $41,194,310
Bankinter SA Banking 382,750 33,318,926
Endesa-Empresa Nacional
de Electricidad SA Utilities Electrical & Gas 319,500 16,372,696
Union Electrica-Fenosa,
SA Utilities Electrical & Gas 1,380,267 6,660,357
-----------
97,546,289
- -----------------------------------------------------------------------------------------
Sri Lanka: 0.1%
Aitken Spence & Co.
Ltd. Textiles & Apparel 150,000 521,032
Associated Motorways
Ltd. Automobiles 281,088 256,799
Ceylon Holiday Resorts
Ltd. Recreation, Other Consumer Goods 144,600 119,032
Colombo Dock Yard Ltd. Transportation 40,000 9,897
Lanka Ceramic Ltd. Building Materials & Components 309,100 267,683
Lanka Orix Leasing Co.
Ltd. Financial Services 819 2,572
National Develpoment
Bank of
Sri Lanka Banking 140,000 578,226
United Motor Lanka Ltd. Automobiles 284,840 131,469
-----------
1,886,710
- -----------------------------------------------------------------------------------------
Thailand: 1.1%
American Standard
Sanitaryware Thailand
Public Co. Ltd. Health & Personal Care 243,600 4,174,058
Asia Fibre Public Co.
Ltd., fgn. Textiles & Apparel 943,500 676,748
Ayudhya Insurance
Public Co. Ltd., fgn. Insurance 239,000 1,628,571
Bangkok Bank Public Co.
Ltd. Banking 130,000 1,067,143
Bangkok Land Co. Ltd.,
fgn. Real Estate 802,000 1,222,415
Bank of Ayudhya Ltd.,
fgn. Banking 301,400 1,633,409
Chareon Pokphand
Feedmill Public Co.
Ltd., fgn. Food & Household Products 338,500 1,564,694
Charoen Pokphand
Feedmill Public
Co. Ltd. Food & Household Products 330,000 1,459,653
Hua Thai Manufacturing
Public Co. Ltd. Textiles & Apparel 35,000 90,656
Karat Sanitaryware
Public Co. Ltd., fgn. Building Materials & Components 246,900 1,001,079
Kian Gwan (Thailand)
Public Co.
Ltd., fgn. Real Estate 96,000 306,037
Padaeng Industry Public
Co. Ltd., fgn. Metals & Mining 357,110 316,625
Royal Ceramic Industry
Public Co.
Ltd., fgn. Building Materials & Components 53,200 101,757
Saha Pathanapibul Co
Ltd., fgn. Health & Personal Care 284,400 549,647
Saha Union Public Co.
Ltd. Textiles & Apparel 456,000 526,958
</TABLE>
18
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LONG TERM SECURITIES (CONT.)
- ---------------------------------------------------------------------------------------
Thailand: (cont.)
Saha Union Public Co.
Ltd., fgn. Textiles & Apparel 1,912,080 $2,504,867
Sanyo Universal
Electric Public Co
Ltd., fgn. Electrical & Electronics 582,700 2,612,224
Textile Prestige Corp.
Ltd., fgn. Textiles & Apparel 66,000 115,720
Thai Asahi Glass Public
Co. Ltd. Building Materials & Components 72,700 143,401
Thai Rayon Public Co.
Ltd. Textiles & Apparel 43,700 351,759
Thai Rayon Public Co.
Ltd., fgn. Textiles & Apparel 11,000 90,078
Thai Wacoal Public Co.
Ltd. Textiles & Apparel 94,000 516,916
Thai Wacoal Public Co.
Ltd., fgn. Textiles & Apparel 99,000 757,442
Thai Wah Public Co.
Ltd., fgn. Food & Household Products 208,900 270,542
United Motor Works
(Siam) Public
Co. Ltd. Machinery & Engineering 30,400 122,957
United Standard
Terminal Public Co.
Ltd., fgn. Wholesale & International Trade 155,600 303,820
----------
24,109,176
- ---------------------------------------------------------------------------------------
Turkey: 5.7%
Akbank Banking 98,668,666 25,569,624
Akcimento Building Materials & Components 8,277,000 2,817,881
Aksigorta AS Insurance 25,334,000 3,552,939
Alarko Sanayii ve
Ticaret SA Multi-Industry 640,000 689,431
Alcatel Teletas
Endustri Tic AS Telecommunications 4,152,000 1,181,463
Anadolu Anonim Turk
Sigorta Sirketi Insurance 4,341,000 705,854
Arcelik AS Appliances & Household Durables 88,133,198 13,793,204
Bagfas Chemicals 9,437,000 3,932,083
Bekoteknik AS Appliances & Household Durables 31,364,375 3,633,678
Borusan AS Industrial Components 4,027,000 1,330,056
Celik Halat ve Sanayii
ve Ticaret AS Building Materials & Components 10,489,022 618,255
Cimentas Izmir Cimento
Fabrikasi Turk AS Building Materials & Components 4,925,250 2,953,148
Cimsa Cimento Sanayi ve
Ticaret AS Building Materials & Components 6,340,000 3,350,407
Compagnie Financiere
Ottomane SA Banking 52,500 2,073,099
Cukurova Elektrik AS Utilities Electrical & Gas 12,242,500 3,421,430
Erciyas Biracilik Food & Household Products 20,000,000 12,398,374
Eregli Demir ve Celik
Fabrikalari AS Metals & Mining 87,081,750 10,619,726
Finans Bank AS, br. Banking 34,979,998 2,666,158
Goodyear Lastikleri
TAS, Industrial Components 37,000 12,221
Izocam Ticaret ve
Sanayii AS, br. Building Materials & Components 4,789,826 671,744
Kartonsan Forest Products & Paper 22,483,000 7,768,515
Koc Holding AS Multi-Industry 3,663,000 655,171
</TABLE>
19
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (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 20,621,054 $ 5,867,780
Marshall Boya ve Vernik
Sanayii AS Industrial Components 12,544,392 1,402,320
Netas Northern Electric
Telekomunic Asyon AS Electrical & Electronics 6,895,000 2,662,703
Otosan Otomobil Sanayii
AS Automobiles 10,524,000 2,727,256
Tat Konserve Sanayii AS Food & Household Products 1,629,869 1,076,641
Tekstil Bankasi AS, br. Banking 107,363 5,183
Tofas Turk Otomobil
Fabrikasi AS Automobiles 20,454,800 2,993,385
Trakya Cam Sanayii AS Building Materials & Components 10,572,030 1,160,345
Turk Demir Dokum, br. Appliances & Household Durables 9,893,322 1,467,912
Turkiye Garanti Bankasi
AS Banking 63,459,175 4,578,863
Vakif Finansal Kiralama
AS Financial Services 8,176,950 382,256
-------------
128,739,105
- ------------------------------------------------------------------------------------------
Venezuela: 0.9%
Banco Provincial SAICA Banking 49,707 58,552
Banco Venezolano de
Credito Banking 15,540 459,579
Ceramica Carabobo CA, A Building Materials & Components 286,800 222,755
Ceramica Carabobo CA,
A, ADR Building Materials & Components 130,000 113,750
Ceramica Carabobo CA, B Building Materials & Components 1,924,658 1,302,400
Consolidada Carabobo, A Building Materials & Components 5,684,664 188,064
Consolidada Carabobo, B Building Materials & Components 25,280,208 791,986
Electricidad de Caracas Utilities Electrical & Gas 9,794,263 7,413,202
Fabrica Nacional de
Cementos CA Building Materials & Components 1,221,000 128,525
H.L. Boulton & Co. SA Multi-Industry 12,912,748 294,501
Industrias Ventane Utilities Electrical & Gas 3,960,414 992,585
Inmuebles y Valores
Caracas CA Building Materials & Components 1,015,000 1,322,807
Manufacturera de
Aparatos
Domesticos SA Appliances & Household Durables 545,225 956,535
Mavesa SA, ADR Food & Household Products 976,683 2,937,392
Siderurgica Venezolana
Sivensa
Saica Svs Metals & Mining 150,000 52,030
Siderurgica Venezolana
Sivensa Saica SVS, ADR Metals & Mining 590,750 1,024,559
Vencemos de Cementos SA Building Materials & Components 1,821,144 2,373,421
Venezolana de Cementos-
Vencemos, #2 Building Materials & Components 832,000 788,211
-------------
21,420,854
-------------
TOTAL LONG TERM SECURITIES 1,829,926,467
- ------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
LOCAL CURRENCY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
SHORT TERM OBLIGATIONS: 19.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bills, 5.17% to 5.36% with
maturities to 11/16/95 U.S. $430,300,000* $ 427,992,985
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS: 100.4% 2,257,919,452
OTHER ASSETS, LESS LIABILITIES: (0.4)% (10,322,186)
---------------
TOTAL NET ASSETS: 100.0% $ 2,247,597,266
===============
CLASS I:
SHARES OUTSTANDING 161,250,735
===============
NET ASSET VALUE $ 13.79
===============
CLASS II:
SHARES OUTSTANDING 1,780,366
===============
NET ASSET VALUE $ 13.74
===============
</TABLE>
*Principal amount in currency of country indicated.
21
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<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 a current prospectus
of the Templeton
Developing Markets
Trust which contains
more complete
information including
charges and expenses.
Like any investment in
securities, the value
of the Fund's portfolio
will be subject to the
risk of loss from
market, currency,
economic, political,
and other factors, as
well as investment
decisions by the
investment manager
which will not always
be profitable or wise.
The Fund and its
investors are not
protected from such
losses by the
investment manager.
Therefore, investors
who cannot accept this
risk should not invest
in shares of the Fund.
To ensure the highest
quality of service,
telephone calls to or
from our service
departments may be
monitored, recorded,
and accessed. These
calls can be determined
by the presence of
a regular beeping tone.
- --------------------------
[RECYCLING LOGO APPEARS HERE]
TL711 Q95 11/95
TEMPLETON
DEVELOPING
MARKETS
TRUST
Third Quarter Report
September 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
