<PAGE>
Templeton Growth
and Income Fund
- --------------------------------------------------------------------------------
Your Fund's Objective:
The Templeton Growth and Income Fund seeks high total return through a flexible
policy of investing primarily in equity and debt securities of domestic and
foreign companies.
- --------------------------------------------------------------------------------
November 15, 1995
Dear Shareholder:
It is a pleasure to bring you the semi-annual report of the Templeton Growth and
Income Fund for the period ended September 30, 1995. During this six month
period, the Fund, as shown in the Performance Summary on page 5, posted a total
return of 10.21% for its Class I shares, compared with the 10.4% return of the
unmanaged Morgan Stanley Capital International (MSCI) World Index.*
On July 1, 1995, the Fund's name was changed to the Templeton Growth and Income
Fund from the Templeton Global Rising Dividends Fund, as mentioned in our March
31, 1995 annual report. At the same time, our investment objective broadened to
include a combination of capital appreciation and income. This provides
shareholders with the opportunity to invest globally in either equity or debt
securities for the purpose of generating current income, as well as capital
appreciation, with
* The MSCI World Index includes approximately 1,450 securities listed on the
stock exchanges of 20 countries including the U.S., Europe, Canada, Australia,
New Zealand, and the Far East. The average company in the index has a market
capitalization of about 3.5 billion. This is a total return index in U.S.
dollars, with gross dividends reinvested. One cannot invest directly in an
index.
1
<PAGE>
added flexibility as to the percentage of total assets invested in either
category. Since this allocation can vary over time, such flexibility is likely
to provide a distinct advantage to shareholders. As with all Templeton funds,
the Templeton Growth and Income Fund searches for investments offering high
potential returns using our fundamental, long-term, value-oriented approach to
finding undervalued stocks and fixed-income securities.
Low interest rates, low inflation, and moderate growth in the major economies
characterized the period under review. This was especially true in the U.S.,
where economic growth slowed following a series of interest rate increases in
1994. Inflation remained mild and corporate earnings strong, with the technology
sector leading the U.S. markets to new highs. The U.S. market was dominated by
"mega-mergers" in the banking, entertainment, and utility sectors as companies
placed greater emphasis on cost-cutting and marketing power.
Overall, Europe lagged behind the U.S. in its economic recovery, although
certain countries moved faster than others. France, which was weighed down by
its public sector deficit and high unemployment, was slow to recover, and the
French market under-performed the rest of Europe. Not surprisingly, we are
actively seeking bargains in this market.
- --------------------------------------------------------------------------------
Templeton Growth and Income Fund
Geographic Distribution on 9/30/95
Based on Total Net Assets
[PIE GRAPH APPEARS HERE]
<TABLE>
<S> <C>
United States Stocks 17.0%
European Stocks 26.8%
Asian Stocks 8.8%
Australian Stocks 2.2%
Latin American Stocks 1.6%
Short-Term Obligations &
Other Net Assets 43.6%
</TABLE>
The Italian market was volatile after the German finance minister raised
concerns that Italy may not be in a position to meet the European Monetary Union
convergence criteria for a single currency. In the United Kingdom, growth
stabilized, corporate profits were strong, and real interest rates remained low.
With regard to events in the world's developing or emerging markets, it is fair
to say that the devaluation of the Mexican peso in late 1994 and its subsequent
effect on the Latin American region precipitated a dramatic downturn in the
emerging markets globally. The Fund, with a mandate to invest globally in both
stocks and bonds, was
2
<PAGE>
able to capitalize on these events by adding to existing holdings or initiating
new positions at what we considered bargain-level prices.
Due to new inflows of cash, the Fund's net assets grew by 33% between March 31
and September 30, 1995, which is encouraging, though it increased our cash
position relative to our equity holdings. With current volatility in a number of
global markets, our efforts to find high quality, undervalued stocks with the
ability to deliver an income stream are now bearing fruit. We extended the
number of countries in which we invest to 13 from 10, with the largest
concentrations in Europe (26.8%), the U.S. (17.0%), Asia (8.8%) and
Australia (2.2%).
Our largest investments were also some of our best performing. During the
reporting period, Chase Manhattan's shares rose 71% and Pharmacia, which
recently agreed to a merger with Upjohn of the U.S., rose 58%. We also had
considerable success in the aerospace industry with our investment in Boeing.
By the end of the period, the shares of this world leader in aircraft
manufacturing rose over 27% since March 1995, and were up over 50% since our
initial purchases in September 1994.
The best performing sector was European pharmaceuticals, which, on September 30,
1995, accounted for over 5% of your Fund's total portfolio holdings. On the
other
- --------------------------------------------------------------------------------
Templeton Growth and Income Fund
Top 10 Holdings on 9/30/95
As a Percentage of Total Net Assets
<TABLE>
<CAPTION>
% of Total
Company, Industry, Country Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Chase Manhattan Corp.
Banking, U.S. 3.2%
- --------------------------------------------------------------------------------
Pharmacia AB, Health & Personal Care
Sweden 2.5%
- --------------------------------------------------------------------------------
Pechiney SA, Metals & Mining, France 2.4%
- --------------------------------------------------------------------------------
Banco Popular Espanol, Banking, Spain 2.3%
- --------------------------------------------------------------------------------
Thames Water Group PLC, Utilities-
Electrical & Gas, United Kingdom 2.0%
- --------------------------------------------------------------------------------
Medeva PLC, Health & Personal Care
United Kingdom 1.9%
- --------------------------------------------------------------------------------
Cheung Kong Holdings LTD
Multi-Industry, Hong Kong 1.9%
- --------------------------------------------------------------------------------
IHC Caland NV, Machinery & Engineering,
Netherlands 1.8%
- --------------------------------------------------------------------------------
Tesco PLC, Merchandising,
United Kingdom 1.8%
- --------------------------------------------------------------------------------
Valero Energy Corp., Energy Sources, U.S. 1.8%
- --------------------------------------------------------------------------------
</TABLE>
For a complete list of portfolio holdings, please see page 8 of this report.
hand, we were disappointed with our investments in the European housing and
construction sector although these prices may be at or near their lows for the
cycle, which is generally an opportune time for value investors such as
Templeton.
Looking forward, we are optimistic about the potential prospects for global
investing. As the world's economies continue to integrate and trade barriers are
brushed aside in favor of free trade, the minds and markets of the world are
being opened to a myriad of investment opportuni-
3
<PAGE>
ties. There are, of course, special risks involved with global investing and, in
particular, investing in emerging markets related to market and currency
volatility, adverse social and political developments, and relatively small size
and lesser liquidity of these markets. These risks are discussed in the Fund's
prospectus.
We believe our disciplined approach to finding undervalued securities around the
world should enable our shareholders to benefit from opportunities as they
become available. We thank you for investing with us and look forward to
reporting to you again on our progress.
Sincerely,
/s/ Mark Holowesko
Mark Holowesko, CFA
President
Templeton Global Investment Trust
/s/ Dorian B. Foyil
Dorian B. Foyil
Portfolio Manager
Templeton Growth and Income Fund
4
<PAGE>
- --------------------------------------------------------------------------------
Performance Summary
Templeton Growth and Income Fund Class I shares provided a total return of
10.21% for the six-month period ended September 30, 1995. Total return measures
the change in value of an investment, assuming reinvestment of dividends and
capital gains distributions, and does not include the current maximum initial
sales charge.
As measured by net asset value, the price of the Fund's Class I shares increased
from $10.05 on March 31, 1995 to $10.79 on September 30, 1995, while the price
of the Fund's Class II shares increased from $10.19 on May 1, 1995 (the
inception date for these shares) to $10.77 on September 30, 1995.
During the reporting period, Class I shareholders received distributions
totaling 6.5 cents ($0.065) per share in dividend income and 20.5 cents ($0.205)
per share in short-term capital gains. Class II shareholders received
distributions totaling 6.5 cents ($0.065) per share in dividend income and 20.5
cents ($0.205) per share in short-term capital gains for the abbreviated five-
month reporting period. Of course, past performance is not predictive of future
results, and distributions will vary depending on income earned by the Fund, as
well as any profits realized from the sale of securities in the portfolio.
- --------------------------------------------------------------------------------
Templeton Growth and
Income Fund
Periods ended September 30, 1995
<TABLE>
<CAPTION>
Since Since
Inception Inception
One-Year (03/14/94) (05/01/95)
<S> <C> <C> <C>
Average Annual
Total Return/1/
Class I Shares 3.91% 5.47% ---
Aggregate
Total Return/2/
Class II Shares --- --- 6.42%
Cumulative
Total Return/3/
Class I Shares 10.25% 11.90% ---
Class II Shares --- --- 8.49%
</TABLE>
1. Average annual total return represents the average annual change in value of
an investment over the specified periods. The figures reflect 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 periods 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. 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 1.0% initial sales charge and 1.0% CDSC for
Class II Shares, applicable to shares redeemed within the first 18 months of
investment. See note below.
Note: All total return calculations assume reinvestment of dividends and capital
gains distributions when paid. Investment return and principal value will
fluctuate with market conditions, currencies and the economic and political
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. 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. Past
performance is not predictive of future results.
All total return calculations reflect the deduction of a proportional share of
Fund expenses on an annual basis. The Fund's Investment Manager and
Administrative Manager have agreed in advance to reduce their respective fees
and to make certain payments to reduce expenses, which increases total return to
shareholders. If the Managers had not taken this action, the Fund's total return
would have been lower. The fee waiver may be discontinued at any time upon
notice to the Fund's Board of Trustees.
5
<PAGE>
Templeton Growth and Income Fund
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS I
---------------------------------------------------
SIX MONTHS MARCH 14 1994
ENDED (COMMENCEMENT
SEPTEMBER 30, 1995 YEAR ENDED OF OPERATIONS) TO
(UNAUDITED) MARCH 31, 1995 MARCH 31, 1994
------------------ -------------- -----------------
<S> <C> <C> <C>
Net asset value, beginning
of period $ 10.05 $ 10.01 $10.00
------- ------- ------
Income from investment
operations:
Net investment income .19 .16 .009
Net realized and
unrealized gain (loss) .82 (.02) .001
------- ------- ------
Total from investment
operations 1.01 .14 .01
------- ------- ------
Distributions to
shareholders:
From net investment income (.06) (.10) --
From net realized gains (.21) -- --
------- ------- ------
Total distributions (.27) (.10) --
------- ------- ------
Change in net asset value .74 .04 .01
------- ------- ------
Net asset value, end of
period $ 10.79 $ 10.05 $10.01
======= ======= ======
TOTAL RETURN * 10.21% 1.43% 0.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000) $ 7,444 $ 5,953 $100
Ratio of expenses to
average net assets 3.02%** 6.11% 32.15%**
Ratio of expenses, net of
reimbursement, to average
net assets 1.25%** 1.25% 1.25%**
Ratio of net investment
income to average net
assets 3.98%** 2.51% 1.89%**
Portfolio turnover rate 3.00% 19.33% --
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR PERIODS
OF LESS THAN ONE YEAR.
** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Templeton Growth and Income Fund
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS II
------------------
FOR THE PERIOD
MAY 1, 1995+
THROUGH
SEPTEMBER 30, 1995
(UNAUDITED)
------------------
<S> <C>
Net asset value, beginning of period $10.19
------
Income from investment operations:
Net investment income .10
Net realized and unrealized gain .75
------
Total from investment operations .85
------
Distributions to shareholders:
From net investment income (.06)
From net realized gains (.21)
------
Total distributions (.27)
------
Change in net asset value .58
------
Net asset value, end of period $10.77
======
TOTAL RETURN * 8.49%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 481
Ratio of expenses to average net assets 3.59%**
Ratio of expenses, net of reimbursement, to average net
assets 1.90%**
Ratio of net investment income to average net assets 2.29%**
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS OR THE CONTINGENT DEFERRED
SALES CHARGE. NOT ANNUALIZED.
** ANNUALIZED.
+ COMMENCEMENT OF OFFERING OF SALES.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Templeton Growth and Income Fund
Investment Portfolio, September 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS: 55.4%
- -------------------------------------------------------------------------------
Aerospace & Military Technical Systems: 0.9%
Boeing Co. U.S. 1,100 $ 75,075
- -------------------------------------------------------------------------------
Banking: 6.9%
Banco Central Hispano Sp. 5,290 110,315
Banco Popular Espanol Sp. 1,160 180,207
Chase Manhattan Corp. U.S. 4,160 254,280
----------
544,802
- -------------------------------------------------------------------------------
Broadcasting & Publishing: 1.4%
Oriental Press Group Limited H.K. 250,000 108,320
- -------------------------------------------------------------------------------
Building Materials & Components: 2.2%
Anglian Group PLC U.K. 46,800 90,923
Mirgor SA Comercial
Industrial Financiera
Inmobiliari Agropecuaria,
ADR, 144a Arg. 34,520 81,985
----------
172,908
- -------------------------------------------------------------------------------
Electrical & Electronics: 0.7%
Stanilite Pacific Aus. 40,633 49,133
Stanilite Pacific Ltd., new Aus. 8,126 4,913
----------
54,046
- -------------------------------------------------------------------------------
Energy Sources: 1.8%
Valero Energy Corp. U.S. 5,910 141,840
- -------------------------------------------------------------------------------
Forest Products & Paper: 1.8%
Portucel Industrial Empresa
Product Celulose, ADR, 144a Port. 18,900 140,014
- -------------------------------------------------------------------------------
Health & Personal Care: 5.6%
Ciba-Geigy AG Swtz. 54 43,256
Glaxo PLC U.K. 3,966 48,047
Medeva PLC U.K. 37,115 153,593
Pharmacia AB, A Swe. 6,630 199,552
----------
444,448
- -------------------------------------------------------------------------------
Insurance: 5.8%
Chubb Corp. U.S. 400 38,400
Providian Corp. U.S. 3,260 135,290
Reliastar Financial Corp. U.S. 1,990 80,844
Torchmark Corp. U.S. 2,209 93,054
UNUM Corp. U.S. 2,119 111,777
----------
459,365
- -------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
Templeton Growth and Income Fund
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Machinery & Engineering: 1.8%
IHC Caland NV Neth. 5,100 $ 144,349
- -------------------------------------------------------------------------------
Merchandising: 7.3%
Argyll Group PLC U.K. 22,000 116,757
K Mart Corp. U.S. 5,200 75,400
Koninklijke Bijenkorf Beheer
NV (KBB) Neth. 1,280 93,571
Kwik Save Group PLC U.K. 13,370 138,534
LI & Fung Ltd. H.K. 14,000 10,683
Tesco PLC U.K. 28,780 142,057
----------
577,002
- -------------------------------------------------------------------------------
Metals & Mining: 2.4%
Pechiney SA, invt. ctf. Fr. 2,959 189,333
- -------------------------------------------------------------------------------
Multi-Industry: 3.4%
Cheung Kong Holdings Ltd. H.K. 28,000 152,463
Pacific Dunlop Ltd. Aus. 47,936 119,551
----------
272,014
- -------------------------------------------------------------------------------
Real Estate: 5.3%
Hang Lung Development Co.
Ltd. H.K. 68,000 109,497
*Hang Lung Development Co.
Ltd., wts. H.K. 6,800 1,091
Hysan Development Co. Ltd. H.K. 29,000 69,577
New World Development Co.
Ltd. H.K. 34,000 134,123
Security Capital Industrial
Trust U.S. 6,782 110,208
----------
424,496
- -------------------------------------------------------------------------------
Telecommunications: 0.6%
Telefonos de Mexico SA, L,
ADR Mex. 1,520 48,260
- -------------------------------------------------------------------------------
Textiles & Apparel: 1.3%
Liz Claiborne Inc. U.S. 1,320 33,330
Nike Inc., B U.S. 600 66,675
----------
100,005
- -------------------------------------------------------------------------------
Utilities-Electrical & Gas: 6.2%
CEZ Csk. 1,392 57,538
China Light & Power Co. Ltd. H.K. 5,500 28,454
Endesa-Empresa Nacional de
Electricidad SA Sp. 2,200 112,738
Texas Utilties Electric Co. U.S. 3,850 134,269
Thames Water Group PLC U.K. 19,040 161,195
----------
494,194
----------
TOTAL COMMON STOCKS (cost $4,005,437) 4,390,471
- -------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Templeton Growth and Income Fund
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
INDUSTRY ISSUE COUNTRY LOCAL CURRENCY** VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
BONDS: 1.0% (cost $103,080)
- ------------------------------------------------------------------------------
Jardine Strategic Holdings
Ltd., 7.50%, conv. U.S. 78,000 $ 80,730
- ------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 42.9% (cost
$3,396,201)
- ------------------------------------------------------------------------------
U.S. Treasury Bills, 5.16% to
5.41% with
maturities to 11/24/95 U.S. 3,410,000 3,397,174
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.3% (cost
$7,504,718) 7,868,375
OTHER ASSETS, LESS LIABILITIES: 0.7% 56,306
----------
TOTAL NET ASSETS: 100.0% $7,924,681
==========
</TABLE>
* NON-INCOME PRODUCING.
** CURRENCY OF COUNTRIES INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Templeton Growth and Income Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (unaudited)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (identified cost $7,504,718) $7,868,375
Cash 5,620
Receivables:
Fund shares sold 71,077
Expense reimbursement 60,680
Dividends and interest 15,974
Unamortized organization costs 50,341
----------
Total assets 8,072,067
----------
Liabilities:
Payables:
Investment securities purchased 64,502
Fund shares redeemed 48,793
Accrued expenses 34,091
----------
Total liabilities 147,386
----------
Net assets, at value $7,924,681
==========
Net assets consist of:
Undistributed net investment income $ 133,125
Net unrealized appreciation 363,657
Accumulated net realized gain 1,377
Net capital paid in on shares of beneficial interest 7,426,522
----------
Net assets, at value $7,924,681
==========
Class I:
Net asset value per share ($7,443,603 / 689,814 shares outstanding) $ 10.79
==========
Maximum offering price ($10.79 / 94.25%) $ 11.45
==========
Class II:
Net asset value per share ($481,078 / 44,670 shares outstanding) $ 10.77
==========
Maximum offering price ($10.77 / 99.00%) $ 10.88
==========
</TABLE>
STATEMENT OF OPERATIONS
for the six months ended September 30, 1995 (unaudited)
<TABLE>
<S> <C> <C>
Investment income:
(net of $7,312 foreign taxes withheld)
Dividends $ 95,297
Interest 83,073
--------
Total income $178,370
Expenses:
Management fees (Note 3) 25,965
Administrative fees (Note 3) 5,125
Distribution fees (Note 3)
Class I 11,714
Class II 805
Transfer agent fees (Note 3) 6,500
Custodian fees 1,000
Reports to shareholders 23,000
Audit fees 13,500
Legal fees (Note 3) 1,500
Registration and filing fees 6,500
Amortization of organization costs 7,071
Other 1,283
--------
Total expenses 103,963
Less expenses reimbursed (Note 3) (60,680)
--------
Total expenses
less reimbursement 43,283
--------
Net investment income 135,087
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 5,749
Foreign currency transactions (2,317)
--------
3,432
Net unrealized appreciation on investments 515,340
--------
Net realized and unrealized gain 518,772
--------
Net increase in net assets resulting from operations $653,859
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Templeton Growth and Income Fund
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
SEPTEMBER 30, 1995 YEAR ENDED
(UNAUDITED) MARCH 31, 1995
------------------ --------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 135,087 $ 86,771
Net realized gain on investment and
foreign currency transactions 3,432 124,538
Net unrealized appreciation (depreciation) 515,340 (151,711)
---------- ----------
Net increase in net assets resulting from
operations 653,859 59,598
Distributions to shareholders:
From net investment income
Class I (40,010) (48,682)
Class II (129) --
From net realized gains
Class I (126,187) --
Class II (406) --
Fund share transactions (Note 2)
Class I 1,014,769 5,842,107
Class II 469,426 --
---------- ----------
Net increase in net assets 1,971,322 5,853,023
Net assets:
Beginning of period 5,953,359 100,336
---------- ----------
End of period $7,924,681 $5,953,359
========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Templeton Growth and Income Fund
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Growth and Income Fund (the Fund) is a separate series of Templeton
Global Investment Trust (the Trust), a Delaware business trust, which is an
open-end, diversified management investment company registered under the In-
vestment Company Act of 1940.
Effective July 1, 1995, the name changed to Templeton Growth and Income Fund
from Templeton Global Rising Dividends Fund, and the investment objective
changed from capital appreciation, to a combination of income and capital ap-
preciation.
The following summarizes the Fund's significant accounting policies.
a. Securities Valuations:
Securities listed or traded on a recognized national or foreign stock exchange
or NASDAQ are valued at the last reported sales prices on the principal ex-
change on which the securities are traded. Over-the-counter securities and
listed securities for which no sale is reported are valued at the mean between
the last current bid and asked prices. Securities for which market quotations
are not readily available are valued at fair value as determined by management
and approved in good faith by the Board of Trustees.
b. Foreign Currency Transactions:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation. Purchases and
sales of portfolio securities and income items denominated in foreign curren-
cies are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customar-
ily enters into foreign exchange contracts to minimize foreign exchange risk
between the trade date and the settlement date of such transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of for-
eign currencies, currency gains or losses realized between the trade and set-
tlement dates on securities transactions, the differences between the amounts
of dividends, interest, and foreign withholding taxes recorded on the Fund's
books, and the U.S. dollar equivalent of the amounts actually received or paid.
Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at the end
of the fiscal period, resulting from changes in the exchange rates.
c. Income Taxes:
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all its
taxable income to its shareholders. Therefore, no provision has been made for
income taxes.
d. Security Transactions, Investment Income, Distributions, and Expenses:
Security transactions are accounted for on a trade date basis. Dividend income
is recorded on the ex-dividend date. Certain dividend income from foreign secu-
rities is recorded as soon as information is available to the Fund. Interest
income and estimated expenses are accrued daily. Distributions to shareholders,
which are determined in accordance with income tax regulations, are recorded on
the ex-dividend date.
e. Unamortized Organization Costs:
Organization costs are being amortized on a straight line basis over five
years.
13
<PAGE>
Templeton Growth and Income Fund
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Effective May 1, 1995, the Fund offered two classes of shares: Class I shares
and Class II shares. Shares of each class are identical except for their ini-
tial sales load, a contingent deferred sales charge on Class II shares, distri-
bution fees, and voting rights on matters affecting a single class. All Fund
shares outstanding before May 1, 1995 were designated as Class I shares. At
September 30, 1995, there were an unlimited number of shares of beneficial in-
terest authorized ($.01 par value). Transactions in the Fund's shares were as
follows:
<TABLE>
<CAPTION>
CLASS I
-----------------------------------------
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1995 MARCH 31, 1995
-------------------- -------------------
SHARES AMOUNT SHARES AMOUNT
------- ----------- ------- ----------
<S> <C> <C> <C> <C>
Shares sold 180,382 $ 1,878,230 648,511 $6,506,203
Shares issued on reinvestment
of distributions 14,711 149,905 4,504 43,729
Shares redeemed (97,451) (1,013,366) (70,865) (707,825)
------- ----------- ------- ----------
Net increase 97,642 $ 1,014,769 582,150 $5,842,107
======= =========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
CLASS II
-------------------
FOR THE PERIOD
MAY 1, 1995
THROUGH
SEPTEMBER 30, 1995
-------------------
SHARES AMOUNT
-------------------
<S> <C> <C>
Shares sold 44,618 $ 468,895
Shares issued on reinvestment of
distributions 52 531
-------- ----------
Net increase 44,670 $ 469,426
======== ==========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 103,614 Class I shares and 10 Class II shares as of September
30, 1995.
14
<PAGE>
Templeton Growth and Income Fund
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton
Galbraith & Hansberger Ltd. (TGH), Templeton Global Investors, Inc. (TGII),
Franklin Templeton Distributors, Inc. (FTD), and Franklin Templeton Investor
Services, Inc. (FTIS), the Fund's investment manager, administrative manager,
principal underwriter, and transfer agent, respectively.
The Fund pays monthly an investment management fee to TGH equal, on an annual
basis, to 0.75% of the Fund's average daily net assets. The Fund pays TGII
monthly its allocated share of an administrative fee of 0.15% per annum on the
first $200 million of the Trust's aggregate average daily net assets, 0.135% of
the next $500 million, 0.10% of the next $500 million, and 0.075% per annum of
average net assets in excess of $1.2 billion. TGH and TGII have voluntarily
agreed to reduce their respective fees to the extent necessary to limit total
expenses to an annual rate of 1.25% and 1.90% of average net assets of Class I
and II shares, respectively through December 31, 1995. The amount of the reim-
bursement for the six months ended September 30, 1995 is set forth in the
Statement of Operations. For the six months ended September 30, 1995, FTD re-
ceived net commissions of $7,542 from the sale of the Fund's shares and FTIS
received fees of $6,500.
Under the distribution plans for Class I and Class II shares, the Fund reim-
burses FTD quarterly for FTD's costs and expenses in connection with any activ-
ity that is primarily intended to result in a sale of Fund shares, subject to a
maximum of 0.35% and 1.00% per annum of the average daily net assets of Class I
and Class II shares, respectively. Under the Class I distribution plan, costs
and expenses exceeding the maximum may be reimbursed in subsequent periods. At
September 30, 1995, these unreimbursed expenses were $739,865. Class II shares
redeemed within 18 months are subject to a contingent deferred sales charge.
There were no contingent deferred sales charges paid to FTD for the six months
ended September 30, 1995.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received fees of $1,500 for the six months ended Sep-
tember 30, 1995.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the six
months ended September 30, 1995 aggregated $1,065,407 and $114,013, respective-
ly. The cost of securities for income tax purposes is the same as that shown in
the Statement of Assets and Liabilities. Realized gains and losses are reported
on an identified cost basis.
At September 30, 1995, the aggregate gross unrealized appreciation and depreci-
ation of portfolio securities based on cost for federal income tax purposes,
was as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 649,765
Unrealized depreciation (286,108)
---------
Net unrealized appreciation $ 363,657
=========
</TABLE>
15
<PAGE>
Templeton Growth and Income Fund, A Series Of
Templeton Global Investment Trust
Special Meeting of Shareholders, May 4, 1995
- --------------------------------------------------------------------------------
A Special Meeting of Shareholders of the Fund was held at the Fund's offices,
700 Central Avenue, St. Petersburg, Florida, on May 4, 1995. The purpose of the
meeting was to approve an amendment to the Fund's investment objective, and to
change the Fund's name.
The results of the voting at the Special Meeting are as follows:
1. Election to amend the Fund's investment objective, and to change the Fund's
name from Templeton Global Rising Dividends Fund to Templeton Growth and Income
Fund:
<TABLE>
<CAPTION>
% OF % OF % OF
OUTSTANDING SHARES OUTSTANDING
FOR SHARES VOTED AGAINST % ABSTAIN SHARES
------- ----------- ------ ------- ----- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
284,353 48.40% 92.21% 15,598 2.65% 8,433 1.44%
</TABLE>
16
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<PAGE>
TEMPLETON GROWTH
AND INCOME FUND
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 Growth
and Income Fund, 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 RECYCLED PAPER APPEARS HERE]
TL414 S95 11/95
TEMPLETON
GROWTH
AND
INCOME
FUND
Semi-Annual Report
September 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
