<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 16, 1996
Dear Shareholder:
This update, which covers the quarter ended March 31, 1996, 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 Franklin Templeton
Fund Information, toll free, at 1-800-342-5236.
<TABLE>
<CAPTION>
Templeton Developing Markets Trust
Periods Ended March 31, 1996
<S> <C> <C> <C> <C>
Since Since
Inception Inception
One-Year Three-Year (10/17/91) (5/01/95)
Average Annual
Total Return/1/
Class I Shares 9.14% 13.77% 9.51% --
Aggregate
Total Return/2/
Class II Shares -- -- -- 9.09%
Cumulative
Total Return/3/
Class I Shares 15.80% 56.33% 59.09% --
Class II Shares -- -- -- 11.32%
</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 maximum 5.75% initial sales charge for Class I shares.
2. Aggregate total return represents the change in value of an investment over
the period indicated and reflects the deduction of the 1.0% initial sales charge
and 1.0% 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.
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 1.0% initial sales charge and 1.0% CDSC for
Class II shares, applicable to shares redeemed within the first 18 months of
investment.
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 shares 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 700% 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
March 31, 1996.
1
<PAGE>
The Following Letter was Written by Dr. Mobius After a Visit to Venezuela.
Caracas is a spectacular city nestled in a valley surrounded by impressive
mountains. The skyline, which bristles with high-rise office buildings, looks
prosperous from afar. But in reality, many of these buildings are just
government-owned, unfinished, concrete shells. This may be the perfect metaphor
for Venezuela's economy--a seemingly vibrant business section hollowed out by
repeated government intervention, nationalization, and grand development
schemes, which cost the taxpayers an enormous amount of money. Much of this
activity occurred during President Carlos Andres Perez' first term in office
(1974-1979). After his election, Perez went on a nationalization binge covering
the oil, iron, shipbuilding, and steel industries, construction of government-
owned hotels, and the introduction of a vertically integrated aluminium
industry.
During his second term (1989-1993), recognizing the extent of the country's
indebtedness, Perez tried to secure financial assistance from the International
Monetary Fund (IMF). Because IMF terms required removal of government controls
from the economy, Perez began to reduce government's role in business and
privatize many companies. However, before he could accomplish his reforms, he
was impeached for misuse of funds.
[MAP OF VENEZUELA APPEARS HERE]
Although most Latin American governments instituted drastic economic
restructuring programs and moved toward market-oriented economies in the mid
1980s, Venezuela delayed the day of reckoning and is still grappling with high
debt, IMF restructuring demands, and a confused sense of what the public will
bear in terms of reform. Today, President Caldera faces the unenviable task of
transforming a socialist economy into a more business-friendly, market sensitive
one. First elected president in 1969 while a member of Venezuela's reputedly
most right-wing party, he won the office again in 1993 by crafting a coalition
among himself, the Communist Party, the Socialist Party and the Evangelist
Party. Following
2
<PAGE>
his election in 1993, he tried to reduce inflation by instituting a program of
extensive price controls. When it failed, his popularity ratings plunged. In
December 1995, his party won only one of 22 gubernatorial elections, and
garnered less than 3% of the vote in 194 mayoral elections.
Many Venezuelan business executives complain that because the government is
unfamiliar with the needs of business and too "control oriented," it continues
to make policy errors, which prevent it from achieving its goals and also result
in severe disadvantages for local business and the economy. This
dissatisfaction is echoed by international credit-rating analysts who have
expressed misgivings about the severe fiscal problems faced by Venezuela. In my
opinion, the basis of the problem is government spending and the resulting
fiscal deficit, which is estimated to be as high as 10% of Gross Domestic
Product (GDP). Although the government has imposed new indirect taxes and is
contemplating spending cuts to bring this deficit down to 3% of GDP, it is
difficult to be sure of the government's political will to make necessary cuts
in social programs and subsidies.
Despite its economic predicament, Venezuela is a country rich in natural and
human resources. Blessed with spectacular beaches, diamonds, gold, bauxite,
petroleum, natural gas and iron ore, it received a vote of confidence from the
international oil community on January 23, 1996, when several companies pledged
millions of dollars for contracts to operate there. This is just one
indication that Venezuela may have turned the page on a chapter of its history.
Although Venezuelan companies accounted for only about 2.3% of the Fund's
portfolio on March 31, 1996, we shall continue to search for bargain stocks
there, seeking out competitive, well-run firms with the potential to make money
under the toughest economic conditions. I believe that Venezuela has many such
companies with the potential to be winners, as national economic reforms are
implemented.
Sincerely,
/s/ J. Mark Mobius
J. Mark Mobius, Ph.D.
President
Templeton Developing Markets Trust
3
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES:
85.3%
- -------------------------------------------------------------------------------------------
Argentina: 6.3%
Aluar Aluminio
Argentino SA, B Misc Materials & Commodities 294,679 $ 663,027
Astra Cia Argentina de
Petroleo SA Energy Sources 2,609,340 5,531,801
Atanor Cia Nacional
Para la Industria
Quimica SA, D Chemicals 1,108,704 2,605,454
Banco Bansud SA, B Banking 371,343 3,156,416
Banco de Galicia y
Buenos Aires SA, B Banking 3,214,099 19,252,455
Banco Frances del Rio
de la Plata SA Banking 1,623,450 14,692,223
Buenos Aires
Embotelladora SA, ADR Beverages & Tobacco 380,000 6,317,500
Capex SA, A Utilities Electrical & Gas 123,774 909,739
Central Costanera SA, B Utilities Electrical & Gas 825,769 2,394,730
Central Termoelectricia
Buenos Aires SA Utilities Electrical & Gas 27,855 33,426
Ciadea SA Automobiles 867,998 3,992,789
Citicorp Equity
Investment SA, A Financial Services 268,223 938,781
Industrias
Petroquimicas Koppers
(IPAKO) Chemicals 1,612,631 5,724,840
Juan Minetti SA Building Materials & Components 413,049 1,528,281
Molinos Rio de Plata
SA, B Food & Household Products 2,014,815 18,939,261
Nobleza Piccardo Sdad
Industrial Comercial y
Financial Beverages & Tobacco 60,252 200,037
Perez Companc SA, B Energy Sources 6,230,568 35,265,012
Quilmes Industrial SA Beverages & Tobacco 400,000 4,300,000
Quilmes Industrial SA,
reg Multi-Industry 105,000 1,260,000
Quilmes Industrial SA,
rts. Multi-Industry 52,500 288,750
Sevel Argentina SA, C Automobiles 2,670,129 3,604,674
Sociedad Comercial del
Plata Cadelplata Come Multi-Industry 6,552,180 17,690,886
Transportadora de Gas
del Sur SA, B Energy Sources 1,808,401 4,267,826
YPF Sociedad Anonima,
ADR Energy Sources 927,410 18,664,126
Zanella Hermanos SA Automobiles 931,434 228,201
--------------
172,450,235
- -------------------------------------------------------------------------------------------
Brazil: 9.6%
Banco Bradesco SA Banking 1,000,719,112 8,509,430
Banco Bradesco SA, pfd. Banking 485,333,863 5,084,988
Banco do Brasil SA Banking 269,985,792 2,705,734
Banco do Brazil SA,
pfd. Banking 553,801,120 5,606,126
Banespa-Banco do Estado
de Sao Paulo SA, pfd. Banking 1,282,693,850 5,077,019
Brasmotor SA, pfd. Multi-Industry 31,032,231 8,010,547
Cia Mesbla SA, pfd. Merchandising 75,117,000 1,634,879
Confab Industrial SA,
pfd. Industrial Components 2,252,340 592,811
Copene-Petroquimica do
Nordeste SA, A, pfd. Chemicals 18,771,550 9,615,229
Duratex SA, pfd. Forest Products & Paper 323,727,600 15,497,371
Eletrobras-Centrais
Eletricas Brasileiras
SA Utilities Electrical & Gas 32,219,000 8,414,741
</TABLE>
4
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- ---------------------------------------------------------------------------------------------
Brazil (cont.)
Eletrobras-Centrais
Eletricas Brasileiras
SA, B, pfd. Utilities Electrical & Gas 160,885,847 $ 43,973,456
Itausa-Investimentos
Itau SA, pfd. Multi-Industry 45,253,179 30,692,544
Mannesmann SA Machinery & Engineering 3,182,010 449,350
Mannesmann SA, pfd. Machinery & Engineering 5,137,562 582,588
Marcopolo SA, B, pfd. Automobiles 14,371,400 2,429,543
Petrobras-Petroleo
Brasileiro SA, pfd. Energy Sources 373,684,333 44,637,092
Refripar-Refrigeracao
Parana Sa, pfd. Appliances & Household Durables 632,250,000 1,670,469
Telebras-
Telecomunicacoes
Brasileiras SA Telecommunications 710,862,694 28,136,591
Telebras-
Telecomunicacoes
Brasileiras SA, pfd. Telecommunications 329,573,973 16,414,475
Telerj-Telecomunicacoes
do Rio de Janeiro
SA, pfd. Telecommunications 9,713,703 661,773
Telesp-Telecomunicacoes
de Sao Paulo SA, pfd. Telecommunications 26,157 4,448
Unibanco-Uniao de
Bancos Brasileiros SA,
pfd. Banking 119,331,186 4,711,157
Vale de Rio Doce, pfd. Metals & Mining 92,635,650 14,535,128
--------------
259,647,489
- ---------------------------------------------------------------------------------------------
Chile: 0.2%
Antofagasta Holdings
PLC Metals & Mining 901,550 4,995,004
- ---------------------------------------------------------------------------------------------
China: 1.5%
China First Pencil Co.
Ltd., B Recreation & Other Consumer Goods 366,000 135,420
China Merchants Shekou
Port Service Co.
Ltd., B Transportation 1,000,000 345,229
China Southern Glass
Co. Ltd., B Building Materials & Components 2,531,200 1,165,124
China Textile Machinery
Co. Ltd., B Machinery & Engineering 2,115,100 329,956
Chiwan Wharf Holdings
Ltd., B Transportation 7,840,000 3,076,597
Foshan Electrical and
Lighting Co. Ltd., B Appliances & Household Durables 790,000 554,144
Guangzhou Shipyard
International Co.
Ltd., H Machinery & Engineering 5,972,000 1,443,967
Luoyang Glass Co. Ltd.,
H Misc Materials & Commodities 1,997,000 632,616
Qing Ling Motors Co.
Ltd., H Automobiles 3,000,000 930,954
Shandong Huaneng Power Utilities Electrical & Gas 284,000 2,485,000
Shanghai Chlor-Alkali
Chemical Co. Ltd., B Chemicals 12,105,300 3,002,114
Shanghai Dazhong Taxi
Shareholding Co.
Ltd., B Transportation 1,100,000 825,000
Shanghai Erfangji
Textile Machinery Co.
Ltd., B Machinery & Engineering 7,973,460 1,052,497
Shanghai Industrial
Sewing Machine Corp. Machinery & Engineering 3,573,700 486,023
Shanghai Jin Jiang
Tower Co. Ltd., B Leisure & Tourism 5,136,000 1,396,992
</TABLE>
5
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- ---------------------------------------------------------------------------------------------
China (cont.)
Shanghai Jinqiao Export
Processing Zone
Development, B Real Estate 5,299,000 $ 1,695,680
Shanghai Lian Hua Fibre
Corp., B Textiles & Apparel 798,360 135,721
Shanghai Lujiaxui
Finance & Trade Zn Dev
Stock Co Ltd, B Real Estate 12,047,900 6,626,345
Shanghai Narcissus
Electric Appliances
Co. Ltd., B Appliances & Household Durables 734,500 133,679
Shanghai Pechemical Co.
Ltd., H Chemicals 13,464,000 4,178,123
Shanghai Refrigerator
Compressor Co. Ltd., B Industrial Components 240,008 103,683
Shanghai Rubber Belt
Co. Ltd., B Industrial Components 600,480 112,890
Shanghai Steel Tube Co.
Ltd., B Machinery & Engineering 1,273,800 173,237
Shanghai Tyre & Rubber
Co. Ltd., B Industrial Components 2,576,000 644,000
Shanghai Vacuum
Electron Devices Co.
Ltd., B Appliances & Household Durables 1,502,000 361,982
Shanghai Wingsung Co.
Ltd., B Recreation & Other Consumer Goods 485,400 90,284
Shanghai Yaohua
Pilkington Glass, B Building Materials & Components 3,968,800 3,810,048
Shenzhen China Bicycles
Co. (Holdings) Ltd., B Recreation & Other Consumer Goods 1,526,400 246,703
Shenzhen Gintian
Industrial Co. Ltd., B Multi-Industry 892,320 237,675
Shenzhen Huafa
Electronics Co. Ltd.,
B Appliances & Household Durables 212,000 33,442
Shenzhen Konka
Electronic Group Co.
Ltd., B Appliances & Household Durables 1,000,000 506,853
Shenzhen Petrochemical
(Group) Shareholding
Co. Ltd., B Chemicals 249,600 57,123
Shenzhen Properties &
Resources Develop.
(Group) Ltd., B Real Estate 1,631,960 305,966
Shenzhen Tellus
Machinery &
Electronics Co. Ltd.,
B Multi-Industry 246,400 36,957
Shenzhen Vanke Co.
Ltd., B Real Estate 5,405,926 1,957,149
Tsann Kuen Enterprise
Co. Ltd., B Appliances & Household Durables 648,000 125,679
Zhuhai Sez Lizhu
Pharmaceutical, B Health & Personal Care 1,196,800 355,914
--------------
39,790,766
- ---------------------------------------------------------------------------------------------
Colombia: 0.4%
Cementos Argos SA Building Materials & Components 792,810 4,140,595
Cia Colombiana de
Tabacos SA Coltabaco Beverages & Tobacco 6,614 20,282
Compania Nacional de
Chocolates SA Food & Household Products 13,000 97,669
Compania Suramericana
de Seguros Insurance 323,000 5,664,359
Promigas SA Utilities Electrical & Gas 102,565 299,860
--------------
10,222,765
- ---------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Czech Republic: 1.2%
CEZ, GDR Utilities Electrical & Gas 374,580 $ 14,234,040
CEZ, GDS, 144a Utilities Electrical & Gas 30,000 1,140,000
Chemopetrol Group AS Chemicals 161,000 6,610,266
Elektrarny Opatovice AS Energy Sources 20,000 3,001,068
SPT Telecom AS Telecommunications 67,000 7,685,127
--------------
32,670,501
- -------------------------------------------------------------------------------------------
Egypt: 0.1%
Commercial
International Bank
Ltd. Banking 1,000 129,774
- -------------------------------------------------------------------------------------------
Greece: 3.9%
Alpha Credit Bank Banking 534,526 38,397,624
Alpha Leasing SA Financial Services 250,690 5,516,991
Delta Dairy SA, pfd. Food & Household Products 189,101 2,057,238
Elais Oleaginous Co. Food & Household Products 169,100 5,476,809
Ergo Bank SA Banking 284,220 13,925,989
Etba Leasing Financial Services 120,040 2,083,491
Fourlis Brothers Corp.
SA Appliances & Household Durables 300,960 4,555,077
Hellas Can--Container
Manufacturers Metals & Mining 208,290 4,717,942
Hellenic Bottling Co.
SA Food & Household Products 193,385 7,218,914
Intracom SA Electrical & Electronics 91,000 2,267,159
National Bank of Greece
SA Banking 129,105 7,502,489
Titan Cement Co., reg. Building Materials & Components 246,410 11,797,149
Titan Cement Co., reg.
pfd. Building Materials & Components 7,100 230,839
X. Benrubi & Son SA Food & Household Products 220,900 1,141,969
--------------
106,889,680
- -------------------------------------------------------------------------------------------
Hong Kong: 16.8%
C.P. Pokphand Co. Ltd. Food & Household Products 215,000 102,163
Cheung Kong Holdings
Ltd. Multi-Industry 12,151,000 85,625,743
China Overseas Land &
Investment Ltd. Real Estate 17,075,000 3,907,777
China Treasure
Telecomunications
Holdings Ltd. Electrical & Electronics 2,066,000 80,140
China Treasury
Telecomunications
Holdings Ltd., wts. Electrical & Electronics 442,000 4,915
CNT Group Ltd. Multi-Industry 37,771,789 2,100,061
Cross Harbour Tunnel
Co. Ltd. Transportation 1,459,598 2,868,618
Dairy Farm
International Holdings
Ltd. Merchandising 9,676,893 9,144,664
Dickson Concepts
(International) Ltd. Merchandising 7,964,000 8,752,780
East Asiatic Co. (Hong
Kong) Ltd. (The) Wholesale & International Trade 2,976,000 388,642
Fairwood Holdings Ltd. Food & Household Products 8,792,000 795,759
</TABLE>
7
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -----------------------------------------------------------------------------------------------
Hong Kong (cont.)
Fortei Holdings Ltd. Merchandising 5,768,000 $ 275,945
Fu Hui Jewellery Co.
(H.K.) Ltd. Recreation & Other Consumer Goods 4,808,000 146,714
Gold Peak Industries
(Holdings) Ltd. Electrical & Electronics 2,193,000 1,162,568
Goldlion Holdings Ltd. Textiles & Apparel 10,685,000 8,565,684
Great Wall Electronic
International Ltd. Electrical & Electronics 3,812,000 290,804
Hang Lung Development
Co. Ltd. Real Estate 17,628,000 33,619,472
Hongkong Electric
Holdings Ltd. Utilities Electrical & Gas 1,878,000 6,107,021
Hopewell Holdings Ltd. Construction & Housing 13,401,002 7,797,325
HSBC Holdings PLC Banking 4,020,529 60,302,736
Hualing Holdings Ltd. Appliances & Household Durables 1,332,000 180,838
IMC Holdings Ltd. Transportation 793,000 461,404
Jardine International
Motor Holdings Ltd. Automobiles 6,029,000 8,029,312
Jardine Matheson
Holdings Ltd.
(Singapore) Multi-Industry 2,085,129 16,264,006
Jardine Strategic
Holdings Ltd.
(Singapore) Multi-Industry 5,349,562 16,904,616
Jardine Strategic
Holdings Ltd., wts. Multi-Industry 536,062 201,023
JCG Holdings Ltd. Financial Services 2,951,000 2,690,012
Joyce Boutique Holdings
Ltd. Merchandising 3,883,000 1,430,896
K Wah International
Holdings Ltd. Building Materials & Components 30,638,166 4,872,633
K Wah International
Holdings Ltd., wts. Building Materials & Components 2,901,142 131,290
KTP Holdings Ltd. Recreation & Other Consumer Goods 8,000,000 362,038
Lai Sun Development Co.
Ltd. Real Estate 43,650,000 7,393,522
Lai Sun Garment
International Ltd. Multi-Industry 4,127,000 4,722,517
Laws International
Holdings Ltd. Textiles & Apparel 7,054,000 702,299
Leefung-Asco Printers
Holdings Ltd. Broadcasting & Publishing 932,000 125,327
Linkful International
Holdings Ltd. Merchandising 1,600,000 76,545
Luks Industrial Co.
Ltd. Appliances & Household Durables 3,214,000 340,765
New World Development
Co. Ltd. Real Estate 10,950,238 50,970,852
NG Fund Hong Ltd. Food & Household Products 668,000 315,257
Peregrine Investments
Holdings Ltd. Financial Services 2,544,000 4,095,268
S. Megga International
Holdings Ltd. Electronic Components & Instruments 5,782,000 228,020
Semi-Tech (Global) Co.
Ltd. Appliances & Household Durables 3,145,861 4,738,723
South Sea Development
Co. Ltd. Real Estate 1,115,000 32,582
Stelux International
Holdings Ltd. Multi-Industry 14,002,570 3,222,728
Sun Hung Kai & Co. Ltd. Financial Services 17,472,000 5,421,877
Sun Hung Kai Properties
Ltd. Real Estate 5,169,900 46,291,127
Swire Pacific Ltd., B Multi-Industry 4,667,500 6,397,142
Tian An China
Investments Co. Ltd. Real Estate 23,396,000 3,630,101
Top Form International
Ltd. Textiles & Apparel 5,204,000 198,498
Tungtex (Holdings) Co.
Ltd. Textiles & Apparel 6,914,000 643,662
Wai Kee Holdings Ltd. Construction & Housing 9,583,600 2,509,282
Wheelock & Co. Ltd. Multi-Industry 10,613,000 21,269,912
</TABLE>
8
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- ---------------------------------------------------------------------------------------------
Hong Kong (cont.)
Wing Shan International
Ltd. Utilities Electrical & Gas 6,442,000 $ 732,992
Wo Kee Hong Holdings
Ltd. Merchandising 17,886,000 3,191,451
Yaohan Hongkong Corp.
Ltd. Merchandising 9,530,000 455,922
Yue Yuen Industrial
(Holdings) Ltd. Recreation & Other Consumer Goods 22,350,000 5,432,894
--------------
456,706,864
- ---------------------------------------------------------------------------------------------
Hungary: 0.6%
Chinoin Pharmaceutical
& Chemical Works Co.
Ltd. Health & Personal Care 13,914 4,367,079
Egis RT Multi-Industry 38,100 1,656,868
Fotex First Hungarian-
American Photo-Service Multi-Industry 2,630,400 2,868,373
Gedeon Richter Ltd. Multi-Industry 45,000 1,608,750
Ibusz Leisure & Tourism 94,260 536,679
Ibusz, new Leisure & Tourism 31,420 166,462
Inter-Europa Bank RT Banking 1,408 193,953
OTP Bank, GDR Banking 448,000 4,468,282
Pannonplast Plastic
Industries PLC Industrial Components 20,720 515,923
Pick Szeged RT, GDR Food & Household Products 24,000 1,139,111
--------------
17,521,480
- ---------------------------------------------------------------------------------------------
India: 2.2%
Aban Loyd Chiles
Offshore Ltd. Energy Sources 245,000 663,616
ATV Project India Ltd. Machinery & Engineering 1,732,000 912,914
Bharat Heavy
Electricals Ltd. Machinery & Engineering 40,000 142,020
Bharat Petroleum Corp.,
Ltd. Energy Sources 1,173,000 9,961,054
Bombay Dyeing &
Manufacturing Co. Ltd. Chemicals 133,000 1,106,061
Bses Ltd. Utilities Electrical & Gas 376,350 1,807,362
Cochin Refineries Ltd. Energy Sources 5,600 27,877
DCW Ltd. Chemicals 500,000 527,086
Dr. Reddys Laboratories
Ltd. Health & Personal Care 94,200 717,189
Essar Shipping Ltd. Transportation 773,500 600,227
Flex Industries Ltd. Food & Household Products 40,000 161,054
Ganesh Benzoplast Ltd. Chemicals 159,100 228,284
Garden Silk Mills Ltd. Textiles & Apparel 229,600 193,294
Grasim Industries Ltd
Ord INR10 Multi-Industry 264,000 4,329,136
Great Eastern Shipping
Co. Ltd. Transportation 871,000 1,160,483
Gujarat Narmada Valley
Fertilizers Co. Ltd. Chemicals 22,000 33,821
Hindustan Petroleum
Corp. Ltd. Energy Sources 369,000 3,376,647
Indian Petrochemicals
Corp. Ltd. Chemicals 1,133,000 5,142,460
Indian Rayon and
Industries Ltd. Multi-Industry 82,000 1,116,545
Indo Gulf Fertilisers &
Chemicals Corp. Ltd. Chemicals 153,700 234,038
</TABLE>
9
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
India (cont.)
Industrial Credit &
Investment Corp. of
India Ltd. Financial Services 3,480,100 $ 9,630,145
Mahanagar Telephone
Nigam Ltd. Telecommunications 215,000 1,133,236
National Aluminium Co.
Ltd. Metals & Mining 50,000 34,407
Oriental Bank of
Commerce Banking 74,600 144,613
Reliance Industries
Ltd. Chemicals 692,000 4,214,817
Steel Authority of
India Ltd, GDR, reg S Metals & Mining 630,000 7,638,750
Steel Authority of
India Ltd., GDR, 144a Metals & Mining 100,000 1,212,500
Tamil Nadu Newsprint &
Papers Ltd., pp Forest Products & Paper 110,800 259,561
Tata Chemicals Ltd. Chemicals 72,400 447,332
Tata Iron & Steel Co.
Ltd. Metals & Mining 252,000 1,457,394
Videocon International
Ltd. Appliances & Household Durables 404,000 697,980
Wockhardt Health & Personal Care 118,800 814,032
--------------
60,125,935
- -------------------------------------------------------------------------------------------
Indonesia: 2.7%
PT Anwar Sierad, fgn. Food & Household Products 1,515,500 1,442,253
PT Aqua Golden
Mississippi, fgn. Beverages & Tobacco 511,225 429,119
PT Astra International,
fgn. Multi-Industry 122,100 174,951
PT Bank Dagang Nasional
Indonesia, fgn. Banking 1,250,000 1,082,656
PT Bank PDFCI, fgn. Banking 623,000 592,889
PT Barito Pacific
Timber, fgn. Forest Products & Paper 20,006,500 20,109,185
PT BBL Dharmala
Finance, fgn. Financial Services 953,000 947,701
PT Bimantara Citra,
fgn. Multi-Industry 2,604,000 3,174,251
PT Branta Mulia, fgn. Automobiles 1,386,000 1,185,629
PT Charoen Pokphand
Indonesia, fgn. Food & Household Products 2,355,000 4,885,265
PT Cipendawa Farm
Enterprises, fgn. Food & Household Products 65,000 54,908
PT Dharmala Intiland,
fgn. Real Estate 3,541,500 2,310,003
PT Duta Anggada Realty,
fgn. Real Estate 1,284,500 782,897
PT Duta Pertiwi
Nusantura, fgn. Chemicals 687,500 205,838
PT Eratex Djaja, fgn. Textiles & Apparel 567,000 181,886
PT Ficorinvest Bank,
fgn. Banking 332,000 365,654
PT Gadjah Tunggal, fgn. Automobiles 7,092,000 4,322,541
PT Gajah Surya Multi
Finance, fgn. Financial Services 1,866,200 778,249
PT Ganda Wangsa Utama,
fgn. Textiles & Apparel 1,022,000 338,772
PT Hadtex Indosyntec,
fgn. Textiles & Apparel 2,918,000 1,591,296
PT Hotel Prapatan, fgn. Leisure & Tourism 1,185,000 1,013,687
PT Intan Wijaya
Chemical Industry,
fgn. Chemicals 1,490,500 462,195
PT Inter-Pacific Bank,
fgn. Banking 738,000 536,612
PT Jakarta
International Hotel &
Development, fgn. Real Estate 1,697,500 1,851,422
PT Japfa Comfeed
Indonesia, fgn. Food & Household Products 3,839,500 2,463,323
</TABLE>
10
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- ---------------------------------------------------------------------------------------
Indonesia (cont.)
PT Metrodata Electronic,
fgn. Electrical & Electronics 345,500 $ 247,525
PT Multibreeder Adirama,
fgn. Food & Household Products 858,750 417,805
PT Multipolar Corp., fgn. Electrical & Electronics 66,000 71,279
PT Polysindo Eka Perkasa,
fgn. Textiles & Apparel 13,014,500 7,793,114
PT Pudjiadi Prestige
Ltd., fgn. Real Estate 762,500 684,880
PT Sarasa Nugraha, fgn. Textiles & Apparel 2,567,000 1,660,645
PT Sari Husada, fgn. Food & Household Products 41,785 230,548
PT Sinar Mas Agro
Resources & Technology
Corp., fgn. Food & Household Products 745,500 613,810
PT Sinar Mas Multi Artha,
fgn. Financial Services 5,017,000 5,579,213
PT Sumalindo Lestari
Jaya, fgn. Forest Products & Paper 730,500 874,850
PT Summarecon Agung, fgn. Real Estate 400,500 235,538
PT Tambang Timah
(Persero), fgn. Metals & Mining 352,000 598,460
PT Ultra Jaya Milk, fgn. Food & Household Products 448,000 239,521
PT Unggul Indah Corp.,
fgn. Chemicals 1,410,200 1,522,992
PT United Tractors, fgn. Machinery & Engineering 794,000 1,596,151
--------------
73,649,513
- ---------------------------------------------------------------------------------------
Israel: 0.6%
Agis Industries Ltd. Health & Personal Care 7,152 47,190
Bank Hapoalim BM Banking 876,348 1,263,113
Clal Industries Ltd. Multi-Industry 638,178 3,648,659
Discount Investment Corp. Multi-Industry 123,452 8,725,586
Super Sol Ltd. Merchandising 18,398 441,667
The First International
Bank of Israel Banking 16,977 2,044,352
--------------
16,170,567
- ---------------------------------------------------------------------------------------
Italy: 1.8%
Banco Ambrosiano Veneto
SPA, di Risp Banking 2,138,000 3,114,489
Istituto Mobiliare
Italiano SPA Banking 1,085,000 7,409,358
Italmobiliare SPA Multi-Industry 783,960 11,226,679
Italmobiliare SPA, di
Risp, conv. Multi-Industry 906,100 6,914,676
Italmobiliare SPA, wts. Multi-Industry 162,360 67,309
Mediobanca/Italmobiliare,
6.00%, conv., 12/31/99 Corporate Bond 2,922,480,000* 1,705,515
Sirti SPA Construction & Housing 2,946,500 16,881,494
Teleco Cavi SPA, di Risp Telecommunications 557,000 1,236,282
--------------
48,555,802
- ---------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Korea (South): 1.8%
Asia Cement Co. Ltd. Building Materials & Components 23,380 $ 893,655
Boram Bank Co. Ltd. Banking 418,730 5,674,066
Central Investment &
Finance Corp. Financial Services 243,844 5,018,713
Choil Aluminium Mfg.
Co. Ltd. Metals & Mining 63,326 1,554,310
Dae Duck Electronics
Co. Ltd. Electrical & Electronics 14,698 605,024
Daegu Bank Co. Ltd. Banking 406,798 6,598,214
Daehan Synthetic Fiber
Co. Ltd. Textiles & Apparel 26,630 3,131,940
Dongkuk Steel Mill Co.
Ltd. Metals & Mining 20,000 401,406
Hae In Corp. Ltd. Merchandising 15,548 1,013,676
Hankook Cosmetics Co.
Ltd. Health & Personal Care 52,400 1,245,944
Korea First Bank Banking 39,000 342,013
Korea Iron & Steel Wire
Co. Ltd. Metals & Mining 9,000 1,254,075
Korea Kumho
Petrochemical Chemicals 20,000 208,629
Kyong Nam Bank Banking 157,610 2,014,829
Kyung Dong Boiler Co
Ltd Energy Equipment & Services 36,029 1,381,745
Shinsung Industries Co.
Ltd. Electrical & Electronics 40,000 1,196,548
Ssangyong Oil Refining
Co Ltd Energy Equipment & Services 464,530 11,223,544
Tong Yang Investment
and Finance Co. Ltd. Financial Services 238,790 4,639,959
Yuhwa Textiles & Apparel 23,310 1,415,436
--------------
49,813,726
- -------------------------------------------------------------------------------------------
Malaysia: 2.5%
Aokam Perdana Bhd. Multi-Industry 1,702,000 3,134,909
Berjaya Singer Bhd. Appliances & Household Durables 1,029,000 1,029,000
Boustead Holdings Bhd.,
fgn. Food & Household Products 647,000 1,406,522
Federal Flour Mills
Bhd. Food & Household Products 2,221,250 5,487,278
Hong Leong Industries
Bhd. Multi-Industry 187,000 946,087
IOI Corp. Bhd. Misc Materials & Commodities 859,000 1,025,368
Leader Universal
Holdings Bhd. Industrial Components 338,000 961,897
Malayawata Steel Bhd. Metals & Mining 1,626,000 2,737,850
Malayawata Steel Bhd.,
fgn. Metals & Mining 1,418,000 2,387,621
Malaysian International
Shipping Corp. Bhd.,
fgn. Transportation 5,291,000 14,952,826
MBF Capital Bhd. Financial Services 563,000 743,249
Oriental Holdings Bhd. Automobiles 2,053,160 11,280,207
Perlis Plantations Bhd. Multi-Industry 4,206,600 15,462,996
Renong Bhd. Multi-Industry 1,363,000 2,219,589
Shangri-La Hotels
(Malaysia) Bhd. Leisure & Tourism 2,666,202 2,876,969
--------------
66,652,368
- -------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Mexico: 7.7%
Cemex SA, B Building Materials & Components 4,806,926 $ 18,309,061
Cifra SA, C Merchandising 14,996,824 19,664,051
Coca Cola Femsa SA de
CV, ADR Beverages & Tobacco 230,900 5,224,113
Cydea SA de CV Chemicals 317,991 734,312
DESC SA, A Multi-Industry 500,000 2,007,299
DESC SA, B Multi-Industry 1,024,108 4,655,036
DESC SA, C Multi-Industry 188,000 803,397
Fomento Economico
Mexicano SA de CV, B Beverages & Tobacco 1,105,265 3,124,372
Grupo Carso SA de CV Multi-Industry 287,143 2,240,744
Grupo Financiero
Banamex Accival SA, B Banking 7,679,000 16,346,537
Grupo Financiero
Banamex Accival SA, L Banking 5,876,750 11,230,949
Grupo Financiero
Bancomer SA de CV, B Banking 35,846,000 14,366,944
Grupo Financiero
Bancomer SA de CV, L Banking 12,716,518 4,219,150
Grupo Financiero Serfin
SA, B Banking 8,031,500 5,222,873
Grupo Industrial Alfa
SA, A Multi-Industry 1,340,514 17,790,498
Grupo Industrial Maseca
SA de CV, ADR B Food & Household Products 500 6,313
Grupo Industrial Maseca
SA de CV, B Food & Household Products 2,459,449 2,069,397
Telmex-Telefonos de
Mexico SA, L Telecommunications 181,000 299,785
Telmex-Telefonos de
Mexico SA, L, ADR Telecommunications 2,257,300 74,208,738
Vitro SA Food & Household Products 3,962,387 7,488,307
--------------
210,011,876
- -------------------------------------------------------------------------------------------
Pakistan: 0.7%
Bank of Punjab Banking 2,126,620 1,634,178
DG Khan Cement Co. Building Materials & Components 2,816,250 1,633,295
Engro Chemical Chemicals 551,500 2,366,850
Exide Pakistan Ltd. Energy Equipment & Services 18,400 21,876
Fauji Fertilizer Co.
Ltd. Chemicals 1,548,800 3,357,144
Khadim Ali Sham Bukhari
& Co. Ltd. Financial Services 223,310 126,272
Kohinoor Industries
Ltd. Textiles & Apparel 358,720 88,417
National Development
Leasing Corp. Financial Services 918,853 439,636
Pakistan Electron Ltd. Appliances & Household Durables 371,147 365,921
Pakistan Telecom Corp.
PTC Telecommunications 7,000 686,000
Pakistan Telecom Corp.
PTC Telecommunications 8,326,300 8,474,667
Trust Modaraba Financial Services 2,427,000 439,859
Union Bank Ltd. Banking 933,778 426,469
--------------
20,060,584
- -------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Philippines: 2.7%
A Soriano Corp. Multi-Industry 19,372,567 $ 2,108,931
Belle Corp. Real Estate 70,000,000 9,090,909
Keppel Philippine
Holdings Inc., B Machinery & Engineering 568,875 167,316
Philex Minning Corp., B Metals & Mining 16,921,095 1,777,426
Philippine Long
Distance Telephone
Co., ADR Telecommunications 650,575 34,643,119
Philippine National
Bank Banking 1,541,336 20,164,537
RFM Corp. Food & Household Products 26,760,250 5,110,819
Sime Darby Pilipinas
Inc. Industrial Components 659,658 503,940
--------------
73,566,997
- -------------------------------------------------------------------------------------------
Poland: 1.1%
Agros Holding SA, C Food & Household Products 49,000 814,237
Bank Gdanski SA Banking 84,000 918,654
Bank Inicjatyw
Gospodarczch SA, G Banking 2,392,233 1,728,746
Bank Przemyslowo-
Handlowy SA Banking 88,922 4,450,052
Bank Rozwoju Eksportu
SA Banking 45,000 956,448
Bank Slaski SA W
Katowicach Banking 21,700 1,534,606
Debica SA, A Automobiles 23,000 559,957
Elektrim Towarzystwo
Handlowe SA Utilities Electrical & Gas 1,150,316 6,801,343
Farm Food SA Food & Household Products 61,000 674,189
Huta Olawa SA Metals & Mining 45,442 242,339
Mostostal Export SA Construction & Housing 551,152 1,618,717
Mostostal Zabrze
Holding SA Construction & Housing 818 4,267
Polifarb Ceiszyu SA Chemicals 766,300 3,997,778
Raciborska Fabryka
Kotlow SA Energy Equipment & Services 75,000 956,448
Rolimpex SA Wholesale & International Trade 5,929 225,686
Warta SA Insurance 74,000 1,315,454
Wielkopolski Bank
Kredytowy SA Banking 865,296 3,109,809
Zaklady Cementowo
Wapiennicze Gorazdze
Chorula Building Materials & Components 42,454 1,312,486
--------------
31,221,216
- -------------------------------------------------------------------------------------------
Portugal: 4.7%
Banco Chemical
(Portugal) Banking 218,015 2,339,806
Banco Comercial
Portugues SA Banking 2,141,552 29,414,223
Banco Comercial
Portugues, 8.75%,
conv., 5/21/02 Corporate Bond 8,780,000* 11,696,368
Banco Espirito Santo e
Comercial de Lisboa Banking 1,701,045 27,144,454
Banco Portugues do
Investimento SA, new Banking 600,014 7,411,174
Banco Totta & Acores SA Banking 836,990 16,297,517
Banco Totta & Acores
SA, new Banking 76,090 1,381,822
</TABLE>
14
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -----------------------------------------------------------------------------------------------
Portugal (cont.)
BPI Socieda de Gestora
de Participacoes
Socias SA Banking 1,033,480 $ 13,442,761
Cel-Cat Fabrica
Nacional de
Conductores Electricos
SA Electronic Components & Instruments 64,581 867,967
Compta-Equipamentos e
Servicos de
Informatica SA Business & Public Services 150,000 1,534,124
Espirito Santo
Financial Holding SA,
ADR Banking 863,200 10,358,400
Portucel Industrial
Empresa Product de
Celulose SA Forest Products & Paper 729,000 4,392,257
Sociedade Portuguesa de
Celulose SA Forest Products & Paper 110,940 2,360,193
--------------
128,641,066
- -----------------------------------------------------------------------------------------------
Singapore: 1.2%
Acma Ltd. Electrical & Electronics 730,400 2,272,609
Chemical Industries
(Far East) Ltd. Chemicals 660,000 1,884,777
First Capital Corp.
Ltd., fgn. Real Estate 341,000 1,061,007
G.P. Batteries
International Ltd. Electrical & Electronics 37,000 91,020
GP Batteries
International Ltd.,
wts. Electrical & Electronics 9,250 6,822
Hai Sun Hup Group Ltd. Transportation 3,218,000 2,331,718
Hinds Hotels
International Ltd. Leisure & Tourism 335,000 387,902
Hinds Hotels
International Ltd.,
fgn. Leisure & Tourism 449,000 519,905
Hour Glass Ltd. Merchandising 913,000 843,148
Inchcape Bhd., fgn. Wholesale & International Trade 1,137,000 4,038,503
Isetan (Singapore)
Ltd., fgn. Merchandising 370,000 841,088
Jaya Holdings Ltd. Transportation 2,314,000 2,399,972
Jaya Holdings Ltd.,
3.00%, conv. ln. stk.,
8/31/98 Corporate Bond 508,800* 831,313
Jaya Holdings Ltd.,
wts. Transportation 89,071 59,794
Jaya Holdings Ltd.,
wts. Transportation 164,760 112,360
Natsteel Ltd., fgn. Metals & Mining 1,360,000 2,676,138
Osprey Maritime Ltd. Transportation 399,000 965,580
Prima Ltd. Food & Household Products 975,000 3,982,560
Resources Development
Corp. Ltd. Building Materials & Components 186,000 825,815
Sembawang Corp. Ltd. Multi-Industry 330,000 1,652,696
Singapore Bus Service
(1978) Ltd., fgn. Transportation 328,200 2,424,721
TIBS Holdings Ltd. Transportation 788,800 1,972,420
TIBS Holdings Ltd.,
wts. Transportation 640 559
WBL Corp. Ltd. Multi-Industry 87,000 206,422
--------------
32,388,849
- -----------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Slovak Republic: 0.1%
Nafta Gbely AS Utilities Electrical & Gas 6,000 $ 474,900
Slovnaft AS Chemicals 105,727 3,329,735
--------------
3,804,635
- -------------------------------------------------------------------------------------------
South Africa: 1.8%
Anglo American
Industrial Corp. Ltd. Multi-Industry 26,000 1,248,915
Anglo American Platinum
Corp. Ltd. Metals & Mining 40,000 259,038
BTR Dunlop Ltd. Industrial Components 786,600 1,409,500
Del Monte Royal Foods
Ltd. Food & Household Products 2,622,750 3,298,019
Engen Ltd. Energy Sources 2,368,702 16,769,308
First National Bank
Holdings Ltd. Banking 797,200 6,766,551
Kersaf Investments Ltd. Leisure & Tourism 80,600 922,301
Nedcor Ltd. Banking 172,059 2,617,936
Palabora Mining Co.
Ltd. Metals & Mining 280,700 4,447,432
Polifin Ltd. Chemicals 300,000 579,440
Potgietersrust
Platinums Ltd. Metals & Mining 62,700 350,852
Rainbow Chicken Ltd. Food & Household Products 731,500 340,340
Rembrandt Group Ltd. Multi-Industry 413,900 3,773,373
Sappi Ltd. Forest Products & Paper 70,000 959,447
Sasol Ltd. Energy Sources 170,000 1,658,849
South African Iron &
Steel Industrial Corp.
Ltd. Metals & Mining 2,000,000 1,891,229
Sun International
(South Africa) Ltd. Leisure & Tourism 526,500 715,020
--------------
48,007,550
- -------------------------------------------------------------------------------------------
Spain: 4.0%
Banco Bilbao Vizcaya Banking 1,341,200 50,040,340
Bankinter SA Banking 382,750 38,554,132
Endesa-Empresa Nacional
de Electricidad SA Utilities Electrical & Gas 245,500 14,065,877
Telefonica de Espana SA Telecommunications 35,000 555,623
Union Electrica-Fenosa,
SA Utilities Electrical & Gas 1,224,267 6,688,851
--------------
109,904,823
- -------------------------------------------------------------------------------------------
Sri Lanka: 0.1%
Aitken Spence & Co.
Ltd. Multi-Industry 150,000 530,875
Associated Motorways
Ltd. Automobiles 281,088 224,488
Ceylon Holiday Resorts
Ltd. Leisure & Tourism 144,600 76,764
Colombo Dock Yard Ltd. Transportation 40,000 7,265
Lanka Ceramic Ltd. Building Materials & Components 309,100 270,610
Lanka Orix Leasing Co.
Ltd. Financial Services 819 2,407
National Develpoment
Bank of Sri Lanka Banking 140,000 628,481
United Motor Lanka Ltd. Automobiles 284,840 167,132
--------------
1,908,022
- -------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Thailand: 1.1%
American Standard
Sanitaryware (THB)
Public Co. Ltd., fgn. Building Materials & Components 270,900 $ 4,613,712
American Standard
Sanitaryware Thailand
Public Co. Ltd. Building Materials & Components 91,300 1,554,935
Asia Fibre Public Co.
Ltd., fgn. Textiles & Apparel 943,500 457,774
Ayudhya Insurance
Public Co. Ltd., fgn. Insurance 276,000 1,781,844
Bangkok Bank Public Co.
Ltd. Banking 130,000 1,173,954
Bangkok Land Public Co.
Ltd. Real Estate 269,000 335,611
Bangkok Land Public Co.
Ltd., fgn. Real Estate 1,186,700 1,621,560
Chareon Pokphand
Feedmill Public Co.
Ltd., fgn. Food & Household Products 338,500 2,145,120
Charoen Pokphand
Feedmill Public Co.
Ltd. Food & Household Products 330,000 1,659,933
Hua Thai Manufacturing
Public Co. Ltd. Textiles & Apparel 175,000 443,599
Karat Sanitaryware
Public Co. Ltd. Building Materials & Components 400 1,386
Karat Sanitaryware
Public Co. Ltd., fgn. Building Materials & Components 246,900 860,551
Kian Gwan (Thailand)
Public Co. Ltd., fgn. Real Estate 96,000 227,186
Padaeng Industry Public
Co. Ltd., fgn. Metals & Mining 357,110 229,841
Regional Container
Lines Public Co. Ltd.,
fgn. Transportation 83,300 983,183
Royal Ceramic Industry
Public Co. Ltd., fgn. Building Materials & Components 53,200 76,382
Saha Pathanapibul
Public Co. Ltd., fgn. Food & Household Products 284,400 522,380
Saha Union Public Co.
Ltd. Multi-Industry 526,600 667,427
Saha Union Public Co.
Ltd., fgn. Multi-Industry 2,183,080 2,983,058
Sanyo Universal
Electric Public Co.
Ltd., fgn. Appliances & Household Durables 587,800 2,234,981
Siam Cement Co. Ltd.
(The), fgn. Building Materials & Components 34,000 1,750,634
Textile Prestige Public
Co. Ltd., fgn. Textiles & Apparel 66,000 130,703
Thai Asahi Glass Public
Co. Ltd. Building Materials & Components 72,700 138,213
Thai Rayon Public Co.
Ltd. Textiles & Apparel 43,700 292,510
Thai Rayon Public Co.
Ltd., fgn. Textiles & Apparel 11,000 74,937
Thai Wacoal Public Co.
Ltd. Textiles & Apparel 94,000 545,429
Thai Wacoal Public Co.
Ltd., fgn. Textiles & Apparel 99,000 798,925
Thai Wah Public Co.
Ltd., fgn. Multi-Industry 208,900 206,848
United Motor Works
(Siam) Public Co. Ltd. Machinery & Engineering 30,400 130,640
United Standard
Terminal Public Co.
Ltd., fgn. Wholesale & International Trade 155,600 278,099
--------------
28,921,355
- -------------------------------------------------------------------------------------------
Turkey: 5.6%
Akbank Banking 115,668,666 11,851,797
Akbank, new Banking 173,502,999 15,829,455
Akbank, rts. Banking 115,668,666 4,464,718
Akcimento Building Materials & Components 6,874,000 6,657,394
Aksigorta AS Insurance 25,334,000 6,756,207
Alarko Sanayii ve
Ticaret SA Appliances & Household Durables 1,920,000 808,478
</TABLE>
17
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- -------------------------------------------------------------------------------------------
Turkey (cont.)
Alcatel Teletas
Endustri Tic AS Telecommunications 8,490,000 $ 3,813,320
Anadolu Anonim Turk
Sigorta Sirketi Insurance 8,682,000 658,050
Arcelik AS Appliances & Household Durables 114,127,198 15,057,838
Bagfas Chemicals 9,437,000 3,245,231
Bekoteknik AS Appliances & Household Durables 31,476,375 3,578,618
Borusan AS Industrial Components 4,123,000 998,270
Celik Halat ve Sanayii
ve Ticaret AS Building Materials & Components 10,489,022 883,348
Cimentas Izmir Cimento
Fabrikasi Turk AS Building Materials & Components 5,095,250 3,254,037
Cimsa Cimento Sanayi ve
Ticaret AS Building Materials & Components 6,316,000 3,900,681
Compagnie Financiere
Ottomane SA Banking 52,500 2,163,528
Erciyas Biracilik Food & Household Products 20,000,000 12,071,023
Eregli Demir ve Celik
Fabrikalari AS Metals & Mining 105,391,750 12,278,076
Finans Bank AS, br. Banking 46,638,831 3,076,742
Goodyear Lastikleri
TAS, Industrial Components 37,000 14,801
Izocam Ticaret ve
Sanayii AS, br. Building Materials & Components 4,819,826 649,454
Kartonsan Forest Products & Paper 23,225,000 8,801,670
Koc Holding AS Multi-Industry 8,939,000 2,697,572
Koc Yatirim ve Sanayii
Mamullesi Pazarlanca
AS Multi-Industry 25,788,818 7,239,474
Marshall Boya ve Vernik
Sanayii AS Industrial Components 12,544,392 1,250,125
Netas Northern Electric
Telekomunic Asyon AS Electrical & Electronics 6,895,000 2,129,132
Otosan Otomobil Sanayii
AS Automobiles 10,574,000 3,636,227
Tat Konserve Sanayii AS Food & Household Products 1,751,869 1,069,637
Tekstil Bankasi AS, br. Banking 107,363 3,504
Tofas Turk Otomobil
Fabrikasi AS Automobiles 23,986,800 2,760,780
Trakya Cam Sanayii AS Building Materials & Components 10,912,030 1,646,492
Turk Demir Dokum, br. Appliances & Household Durables 9,893,322 1,180,339
Turkiye Garanti Bankasi
AS Banking 65,254,175 6,136,613
Vakif Finansal Kiralama
AS Financial Services 13,460,077 802,938
--------------
151,365,569
- -------------------------------------------------------------------------------------------
Venezuela: 2.3%
Banco Provincial SAICA Banking 68,035 79,198
Banco Venezolano de
Credito Banking 18,648 462,860
Ceramica Carabobo CA, A Building Materials & Components 315,480 218,525
Ceramica Carabobo CA,
A, ADR Building Materials & Components 143,000 150,820
Ceramica Carabobo CA, B Building Materials & Components 2,117,124 1,191,515
Consolidada Carabobo, A Building Materials & Components 5,684,664 328,136
Consolidada Carabobo, B Building Materials & Components 25,280,208 1,451,952
Electricidad de Caracas Utilities Electrical & Gas 72,122,238 46,626,819
Fabrica Nacional de
Cementos CA Building Materials & Components 1,221,000 140,959
H.L. Boulton & Co. SA Multi-Industry 12,912,748 310,567
</TABLE>
18
<PAGE>
Templeton Developing Markets Trust
Investment Portfolio, March 31, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
LONG TERM SECURITIES
(CONT.)
- ---------------------------------------------------------------------------------------------
Venezuela (cont.)
Industrias Ventane Utilities Electrical & Gas 3,960,414 $ 991,010
Inmuebles y Valores
Caracas CA Building Materials & Components 1,015,000 585,888
Manufacturera de
Aparatos Domesticos SA Appliances & Household Durables 545,225 251,776
Mavesa SA, ADR Food & Household Products 1,027,933 4,242,476
Siderurgica Venezolana
Sivensa Saica Svs Metals & Mining 150,000 64,938
Siderurgica Venezolana
Sivensa Saica SVS, ADR Metals & Mining 640,750 1,386,974
Vencemos de Cementos SA Building Materials & Components 1,821,144 2,789,232
Venezolana de Cementos-
Vencemos, #2 Building Materials & Components 832,000 992,527
--------------
62,266,172
--------------
TOTAL LONG TERM
SECURITIES 2,318,061,183
- ---------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS:
16.3%
- ---------------------------------------------------------------------------------------------
U.S. Treasury Bills, 4.62% to 5.11% with maturities to
5/30/96 444,077,000* 441,758,727
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS:
101.6% 2,759,819,910
OTHER ASSETS, LESS
LIABILITIES: (1.6)% (43,240,542)
--------------
TOTAL NET ASSETS: 100.0% $2,716,579,368
==============
CLASS I:
SHARES OUTSTANDING 183,739,652
==============
NET ASSET VALUE $ 14.22
==============
CLASS II:
SHARES OUTSTANDING 7,337,474
==============
NET ASSET VALUE $ 14.12
==============
</TABLE>
* PRINCIPAL AMOUNT IN CURRENCY OF COUNTRIES INDICATED.
19
<PAGE>
- --------------------------------------------
TEMPLETON TEMPLETON
DEVELOPING MARKETS
TRUST DEVELOPING
PRINCIPAL UNDERWRITER: MARKETS
Franklin Templeton TRUST
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628 First Quarter Report
March 31, 1996
Shareholder Services
1-800-632-2301
Fund Information
1-800-342-5236
This report must be preceded or
accompanied by the current prospectus
of the Templeton 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.
- --------------------------------------------
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
[LOGO OF RECYCLED
PAPER APPPEARS HERE] TL711 Q96 05/96
