<PAGE>
Templeton Global
Infrastructure Fund
- --------------------------------------------------------------------------------
Your Fund's Objective:
The Templeton Global Infrastructure Fund seeks long-term capital growth by
investing primarily in securities of domestic and foreign companies that are
principally engaged in or related to the development, operation or
rehabilitation of the physical and social infrastructures of various nations
throughout the world.
- --------------------------------------------------------------------------------
November 16, 1995
Dear Shareholder:
We are pleased to bring you the semi-annual report of the Templeton Global
Infrastructure Fund for the six-month period ended September 30, 1995.
During this period, falling interest rates, better-than-expected corporate
earnings and improving flows of assets into mutual funds fueled the world's
stock markets. The U.S. market provided solid returns, ranking among the four
best performing bourses in dollar terms, included in the Morgan Stanley Capital
International (MSCI) World Index. European stocks in general, and particularly
those in Scandinavian markets, moved higher as well. On the other hand, Asian
markets have not totally recovered from the overall drop in emerging markets.
Structural problems within the Japanese economy and speculation regarding Hong
Kong's return to Chinese control also hurt investors' confidence in this region.
Within this environment, the Fund's Class I shares provided a total return of
12.15% during the six-month period, as shown in the Performance Summary on
page 5.
1
<PAGE>
Large holdings in the telecommunications sector were a strong factor in our
performance. The Fund's approximately 25% weighting in this industry indicates
the attractive investment opportunities we perceive to be available. Globally,
telecommunications infrastructure is in need of significant development and
upgrade. Possible future development can best be illustrated by comparing
telephone line penetration rates in the emerging markets with that in the
developed markets. Latin America, which we consider representative of emerging
markets, has approximately 10 phone lines per 100 inhabitants, versus at least
45 lines per 100 inhabitants in developed countries.
We believe the Fund is well-positioned to take advantage of this potential
booming market. Telebras, the Brazilian telecommunications company, is our
largest position in the industry, representing over 2% of the Fund's total net
assets. Brazil is the world's fifth most populous country, but has less than
nine phone lines per 100 people. The Brazilian authorities are revising the
country's regulated phone rates, which should allow Telebras to increase monthly
customer charges to a more realistic rate than
- --------------------------------------------------------------------------------
Templeton Global
Infrastructure Fund
Geographic Distribution on 9/30/95
Based on Total Net Assets
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
United States Stocks 15.5%
Canadian Stocks 3.2%
European Stocks 38.7%
Asian Stocks 21.1%
Australian Stocks 4.6%
Latin American Stocks 7.4%
Short-Term Obligations
Other Net Assets 9.5%
</TABLE>
the current local equivalent of approximately $0.70 for unlimited local service.
Of course, investments in foreign securities involve special risks, such as
market and currency volatility and adverse economic, social and political
developments in the countries where the Fund is invested. Developing markets are
represented in the Fund's portfolio and involve heightened risks related to the
same factors, in addition to risks associated with the relatively small size
2
<PAGE>
and lesser liquidity of these markets. Because the Fund focuses on
infrastructure-related industries, its return may be more volatile than that of
a more broadly diversified investment. These special considerations are
discussed in the prospectus. While short-term price 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./1/
Within developed countries, telecommunications growth is being driven by new
technologies and services. In the U.S., the Fund participated in the technology
stock rally via holdings in semiconductor manufacturer Actel and network
equipment provider Chipcom. We also held DSC Communications, a leading vendor of
telecommunications equipment, which may grow revenues and earnings at an annual
rate of 25% over the next three to five years. By the end of the period, the
market rally had pushed many shares out of bargain territory and we became net
sellers of U.S. stocks. In our opinion, howev-
1. Source: Bloomberg. Based on quarterly percentage change over 15 years ended
June 30, 1995.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Templeton Global
Infrastructure Fund
Top 10 Holdings on 9/30/95
As a Percentage of Total Net Assets
% of Total
Company, Industry, Country Net Assets
- --------------------------------------------------------------------------------
<S> <C>
Tampella AB OY; Machinery & Engineering,
Finland 2.5%
- --------------------------------------------------------------------------------
Aker AS, A; Building Materials & Components,
Norway 2.5%
- --------------------------------------------------------------------------------
Filinvest Land Inc.; Real Estate, Philippines 2.5%
- --------------------------------------------------------------------------------
Telebras-Telecomunicacoes Brasileiras SA, pfd.,
ADR; Telecommunications, Brazil 2.4%
- --------------------------------------------------------------------------------
Metra OY, B; Multi-Industry, Finland 2.2%
- --------------------------------------------------------------------------------
Stanilite Pacific; Electrical & Electronics,
Australia 2.0%
- --------------------------------------------------------------------------------
Shandong Huaneng Power; Utilities -
Electrical & Gas, China 2.0%
- --------------------------------------------------------------------------------
Southern Electric PLC; Utilities -
Electrical & Gas, United Kingdom 1.9%
- --------------------------------------------------------------------------------
Cia de Inversiones en Telecomunicaciones SA,
7.00%, 3/03/98; Telecommunications, Argentina 1.9%
- --------------------------------------------------------------------------------
BBC Brown Boveri Ltd., br.; Electrical &
Electronics, Switzerland 1.8%
- --------------------------------------------------------------------------------
</TABLE>
For a complete list of portfolio holdings, see page 8 of this report.
er, the long-term outlook for the U.S. market appears favorable.
Looking forward, increasing free trade, technological advancements, and the
acceptance of capitalism by most nations, point toward improved economic growth
and corporate earnings. As more countries join the world's
3
<PAGE>
free markets and experience such growth, the demand for infrastructure
development and upgrade should increase. We are optimistic about the long-term
outlook for global equity investing and will continue our search for those
undervalued and undiscovered companies contributing to the expansion of the
world's growth through infrastructure development.
Thank you for your continued support of the Templeton Global Infrastructure
Fund. We appreciate your support, welcome your comments and look forward to
serving you in the future.
Sincerely,
/s/ Mark Holowesko
Mark Holowesko, CFA
President
Templeton Global Investment Trust
/s/ Gary R. Clemons
Gary R. Clemons
Portfolio Manager
Templeton Global Infrastructure Fund
4
<PAGE>
- --------------------------------------------------------------------------------
Performance Summary
Templeton Global Infrastructure Fund Class I shares provided a total return of
12.15% for the six-month period ended September 30, 1995. Total return measures
the change in value of an investment, assuming reinvestment of dividend and
capital gains distributions, and does not include sales charges.
As measured by net asset value, the price of the Fund's Class I shares increased
from $9.43 on March 31, 1995 to $10.55 on September 30, 1995, while the price of
the Fund's Class II shares increased from $9.73 on May 1, 1995 (the inception
date for these shares) to $10.51 on September 30, 1995.
During the reporting period, Class I and Class II shareholders received
distributions totaling 2.5 cents ($0.025) per share in dividend income. In the
future, the per share amount of any dividends may differ slightly between Class
I and Class II shares, as detailed in the Fund's prospectus. 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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Templeton Global
Infrastructure Fund
Periods Ended September 30, 1995
Since Since
Inception Inception
One-Year (3/14/94) (5/01/95)
<S> <C> <C> <C>
Average Annual
Total Return/1/
Class I Shares -3.20% 0.09% --
Aggregate Total Return/2/
Class II Shares -- -- 6.41%
Cumulative Total Return/3/
Class I Shares 2.70% 6.21% --
Class II Shares -- -- 8.28%
</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. 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 existed 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 maximum 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: Class II Shares, which the Fund began offering on May 1, 1995, are subject
to different fees and expenses than Class I shares, which will affect their
performance. Please see the prospectus for more details regarding Class I and
Class II shares.
All total return calculations assume reinvestment of dividend 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. Developing markets involve heightened
risks related to the same factors, in addition to those associated with the
relatively small size and lesser liquidity of these markets. Thus, your shares,
when redeemed, may be worth more or less than their original cost. 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 Administrative Manager had agreed
in advance to reduce its fees and to make certain payments to reduce expenses
through April 15, 1995, which increases total return to shareholders. If the
Managers had not taken this action, the Fund's total return would have been
lower.
- --------------------------------------------------------------------------------
5
<PAGE>
Templeton Global Infrastructure 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 $ 9.43 $ 10.01 $10.00
------- ------- ------
Income from investment
operations:
Net investment income .05 .07 .009
Net realized and
unrealized gain (loss) 1.10 (.61) .001
------- ------- ------
Total from investment
operations 1.15 (.54) .01
Distributions to
shareholders from net
investment income (.03) (.04) --
------- ------- ------
Change in net asset value 1.12 (.58) .01
------- ------- ------
Net asset value, end of
period $ 10.55 $ 9.43 $10.01
======= ======= ======
TOTAL RETURN * 12.15% (5.41)% 0.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000) $21,046 $18,717 $101
Ratio of expenses to
average net assets 2.35%** 3.25% 32.02%**
Ratio of expenses, net of
reimbursement, to average
net assets 2.25%** 1.25% 1.25%**
Ratio of net investment
income to average net
assets 1.00%** 1.38% 1.89%**
Portfolio turnover rate 16.68% 3.21% --
</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 Global Infrastructure 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 $ 9.73
--------
Income from investment operations:
Net investment income --
Net realized and unrealized gain .81
--------
Total from investment operations .81
Distributions to shareholders from net investment income (.03)
--------
Change in net asset value .78
--------
Net asset value, end of period $ 10.51
========
TOTAL RETURN * 8.28%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 800
Ratio of expenses to average net assets 2.97%**
Ratio of net investment income to average net assets (1.09)%**
</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 Global Infrastructure Fund
Investment Portfolio, September 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS: 84.0%
- -------------------------------------------------------------------------------
Aerospace & Military Technical Systems: 0.7%
*Actel Corp. U.S. 9,100 $ 160,388
- -------------------------------------------------------------------------------
Building Materials & Components: 11.2%
Acme Landis Holdings Ltd. H.K. 1,200,000 108,644
Aker AS, A Nor. 36,000 544,629
Anglian Group PLC U.K. 40,000 77,712
*Cementos Paz del Rio SA, ADR,
144a Col. 11,600 156,600
*Chakwal Cement Co. Ltd., GDR Pkr. 16,250 116,188
*Corcemar Corp. Arg. 46,370 201,720
Karat Sanitaryware Public Co.
Ltd., fgn. Thai. 29,500 119,610
Masco Corp. U.S. 6,000 165,000
*Owens Corning Fiberglas Corp. U.S. 3,900 174,038
Parbury Ltd. Aus. 803,000 315,571
Svedala Industri, A Swe. 12,000 362,046
Unione Cementi Marchino
Emiliane (Unicem), di Risp Itl. 31,000 101,315
-----------
2,443,073
- -------------------------------------------------------------------------------
Business & Public Services: 1.4%
Wheelabrator Technologies Inc. U.S. 21,200 315,350
- -------------------------------------------------------------------------------
Chemicals: 0.5%
European Vinyls Corp. EVC
International NV Neth. 2,865 100,244
- -------------------------------------------------------------------------------
Construction & Housing: 3.7%
Dragados y Construcciones SA Sp. 18,900 283,378
European Techniki Gr. 12,750 128,211
Kaufman & Broad Home Corp. U.S. 13,400 169,175
Raine PLC U.K. 211,000 73,321
Sociedade Construcoes Soares
da Costa SA Port. 5,200 75,935
*U.S. Home Corp. U.S. 3,400 85,000
-----------
815,020
- -------------------------------------------------------------------------------
Data Processing & Reproduction: 1.3%
*Newbridge Networks Corp. Can. 9,300 273,188
- -------------------------------------------------------------------------------
Electrical & Electronics: 8.4%
Alcatel Alsthom SA Fr. 4,100 344,873
BBC Brown Boveri Ltd., br. Swtz. 348 403,090
Dongfang Electrical Machinery
Co. Ltd., H Chn. 1,208,000 363,258
DSC Communications Corp. U.S. 2,050 121,463
Gold Peak Industries
(Holdings) Ltd. H.K. 352,000 168,449
Stanilite Pacific Aus. 364,337 440,556
-----------
1,841,689
- -------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Electronic Components & Instruments: 2.9%
Allgon AB, B free Swe. 10,100 $ 225,990
BICC U.K. 44,300 211,316
Draka Holding NV Neth. 7,000 192,002
-----------
629,308
- -------------------------------------------------------------------------------
Energy Sources: 1.8%
*Hub Power Co. Ltd., GDR, 144a Pkr. 22,500 396,675
- -------------------------------------------------------------------------------
Forest Products & Paper: 1.6%
PT Barito Pacific Timber, fgn. Indo. 115,000 85,025
Weyerhaeuser Co. U.S. 6,000 273,750
-----------
358,775
- -------------------------------------------------------------------------------
Industrial Components: 1.8%
BW/IP Inc. U.S. 8,400 150,150
*Shaw Group Inc U.S. 26,000 237,250
-----------
387,400
- -------------------------------------------------------------------------------
Machinery & Engineering: 4.8%
SNC-Lavalin Group Inc., A Can. 10,600 199,159
*Tampella AB OY Fin. 170,300 545,559
VA Technologie AG, br., 144a Aut. 2,680 308,610
-----------
1,053,328
- -------------------------------------------------------------------------------
Metals & Mining: 1.1%
Kang Won Industrial Co. Ltd. Kor. 11,000 223,379
Maanshan Iron & Steel Co.
Ltd., H Chn. 60,000 11,175
-----------
234,554
- -------------------------------------------------------------------------------
Multi-Industry: 2.7%
Hutchison Whampoa Ltd. H.K. 20,000 108,385
Metra OY, B Fin. 10,300 476,880
-----------
585,265
- -------------------------------------------------------------------------------
Real Estate: 5.2%
*Filinvest Land Inc. Phil. 1,666,250 537,191
MDX Public Co. Ltd., fgn. Thai. 116,800 255,987
New World Development Co. Ltd. H.K. 44,000 173,571
Taylor Woodrow PLC U.K. 97,300 162,138
-----------
1,128,887
- -------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Telecommunications: 20.1%
ABC Communications (Holdings)
Ltd. H.K. 20,000 $ 4,009
Allen Group Inc. U.S. 9,300 337,125
*Antec Corp. U.S. 8,750 117,031
BC Telecom Inc. Can. 6,500 113,662
BCE Inc. Can. 3,500 116,813
*Chengdu Telecommunications
Cable Co. Ltd., H Chn. 575,000 148,738
*Elcotel Inc. U.S. 42,600 340,800
Koninklijke PTT Nederland Neth. 8,600 303,593
*LCI International U.S. 4,800 188,400
MCI Communications Corp. U.S. 10,000 260,625
*Millicom International
Cellular SA Lux. 11,100 356,588
*Orient Telecom & Technology
Holdings Ltd. H.K. 320,000 106,574
*Pakistan Telecom Corp. PTC Pkr. 1,890 198,450
Philippine Long Distance
Telephone Co., ADR Phil. 4,400 292,050
PT Indosat, ADR Indo. 9,850 345,981
STET (Sta Finanziaria
Telefonica Torino) SPA, di
Risp Itl. 48,000 111,687
Telecom Italia Mobile Itl. 60,000 99,833
Telecom Italia Mobile, di risp Itl. 61,000 67,336
Telecom Italia Spa Itl. 60,000 98,307
Telecom Italia Spa, di Risp Itl. 61,000 79,593
Tele Danmark AS, ADS Den. 11,660 301,703
Tele Danmark AS, B Den. 1,090 56,334
Telefonica de Espana SA Sp. 20,900 287,181
Telefonos de Mexico SA, L, ADR Mex. 2,010 63,818
-----------
4,396,231
- -------------------------------------------------------------------------------
Transportation: 1.8%
*Bremer Vulkan Verbund AG Ger. 6,250 262,203
IMC Holdings Ltd. H.K. 140,000 90,536
Shanghai Hai Xing Shipping Co.,
H Chn. 350,000 37,573
-----------
390,312
- -------------------------------------------------------------------------------
Utilities-Electrical & Gas: 13.0%
Australian Gas & Light Company Aus. 70,600 245,437
Central Costanera SA, ADR, 144a Arg. 9,850 256,100
*CEZ Csk. 9,600 396,815
Consolidated Electric Power
Asia Ltd., ADR, 144a H.K. 8,500 164,688
Iberdrola SA Sp. 39,600 298,952
National Power PLC U.K. 38,400 313,576
Powergen PLC U.K. 1,700 15,010
Shandong Huaneng Power Chn. 49,400 438,425
Southern Electric PLC U.K. 29,500 418,426
</TABLE>
10
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Texas Utilities Electric
Co. U.S. 8,000 $ 279,000
Wing Shan International
Ltd. H.K. 114,000 14,007
-----------
2,840,436
-----------
TOTAL COMMON STOCKS (cost $18,435,026) 18,350,123
- -------------------------------------------------------------------------------
PREFERRED STOCKS: 6.0%
- -------------------------------------------------------------------------------
Ballast Nedam NV, ctf.,
conv., pfd. Neth. 3,400 156,988
Cia de Inversiones en
Telecomunicaciones SA,
7.00%, 3/03/98, pfd. Arg. 8,300 412,925
Concessioni e
Costruzioni Autostrade
SPA, B, pfd. Itl. 180,000 203,721
Telebras-
Telecomunicacoes
Brasileiras SA, pfd.,
ADR Braz. 11,205 531,537
-----------
TOTAL PREFERRED STOCKS (cost $1,218,839) 1,305,171
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY**
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
BONDS: 0.5% (cost $100,000)
- -------------------------------------------------------------------------------
House of Investments
Ltd., 4.00%, conv.,
10/17/01, 144a U.S. 100,000 104,500
- -------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 9.3% (cost $2,039,991)
- -------------------------------------------------------------------------------
U.S. Treasury Bills,
5.17% to 5.38% with
maturities to 11/24/95 U.S. 2,049,000 2,040,578
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.8% (cost $21,793,856) 21,800,372
OTHER ASSETS, LESS LIABILITIES: 0.2% 46,111
-----------
TOTAL NET ASSETS: 100.0% $21,846,483
===========
</TABLE>
* NON-INCOME PRODUCING.
** CURRENCY OF COUNTRIES INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
Templeton Global Infrastructure Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (unaudited)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (identified cost $21,793,856) $21,800,372
Cash 5,411
Receivables:
Fund shares sold 72,615
Dividends and interest 58,999
Unamortized organization costs 52,071
-----------
Total assets 21,989,468
-----------
Liabilities:
Payables:
Investment securities purchased 20,318
Fund shares redeemed 50,371
Accrued expenses 72,296
-----------
Total liabilities 142,985
-----------
Net assets, at value $21,846,483
===========
Net assets consist of:
Undistributed net investment income $ 123,356
Net unrealized appreciation 6,516
Accumulated net realized gain 762,157
Net capital paid in on shares of beneficial interest 20,954,454
-----------
Net assets, at value $21,846,483
===========
Class I:
Net asset value per share
($21,045,694 / 1,995,526 shares outstanding) $ 10.55
===========
Maximum offering price ($10.55 / 94.25%) $ 11.19
===========
Class II:
Net asset value per share
($800,789 / 76,188 shares
outstanding) $ 10.51
===========
Maximum offering price ($10.51 / 99.00%) $ 10.62
===========
</TABLE>
STATEMENT OF OPERATIONS
for the six months endedSeptember 30, 1995 (unaudited)
<TABLE>
<S> <C> <C>
Investment income:
(net of $32,940 foreign taxes withheld)
Dividends $ 280,019
Interest 62,431
----------
Total income $ 342,450
Expenses:
Management fees (Note 3) 79,208
Administrative fees (Note 3) 15,835
Distribution fees (Note 3)
Class I 36,455
Class II 1,547
Transfer agent fees (Note 3) 31,000
Custodian fees 4,000
Reports to shareholders 35,500
Audit fees 17,750
Legal fees (Note 3) 7,500
Registration and filing fees 11,000
Amortization of organization costs 7,071
Other 2,832
----------
Total expenses 249,698
Less expenses reimbursed (Note 3) (9,935)
----------
Total expenses less reimbursement 239,763
----------
Net investment income 102,687
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 857,380
Foreign currency transactions (22,931)
----------
834,449
Net unrealized appreciation on investments 1,389,532
----------
Net realized and unrealized gain 2,223,981
----------
Net increase in net assets
resulting from operations $2,326,668
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Templeton Global Infrastructure 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 $ 102,687 $ 138,777
Net realized gain (loss) on investments
and foreign currency transactions 834,449 (72,292)
Net unrealized appreciation (depreciation) 1,389,532 (1,383,044)
----------- -----------
Net increase (decrease) in net assets
resulting from operations 2,326,668 (1,316,559)
Distributions to shareholders:
From net investment income
Class I (50,522) (67,351)
Class II (323) --
Fund share transactions (Note 2)
Class I 56,843 19,999,597
Class II 797,290 --
----------- -----------
Net increase in net assets 3,129,956 18,615,687
Net assets:
Beginning of period 18,716,527 100,840
----------- -----------
End of period $21,846,483 $18,716,527
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Templeton Global Infrastructure Fund
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Global Infrastructure Fund (the Fund) is a separate series of Temple-
ton Global Investment Trust (the Trust), a Delaware business trust, which is an
open-end diversified management investment company registered under the Invest-
ment Company Act of 1940. The following summarizes the Fund's significant ac-
counting 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. Unamortized Organization Costs:
Organization costs are being amortized on a straight line basis over five
years.
e. 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.
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
14
<PAGE>
Templeton Global Infrastructure Fund
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
September 30, 1995, there was 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 539,766 $5,466,043 2,174,807 $21,960,517
Shares issued on
reinvestment of
distributions 4,625 46,850 6,386 62,070
Shares redeemed (532,950) (5,456,050) (207,180) (2,022,990)
-------- ---------- --------- -----------
Net increase 11,441 $ 56,843 1,974,013 $19,999,597
======== ========== ========= ===========
<CAPTION>
CLASS II
--------------------
FOR THE PERIOD
MAY 1, 1995
THROUGH
SEPTEMBER 30, 1995
--------------------
SHARES AMOUNT
-------- ----------
<S> <C> <C>
Shares sold 76,196 $ 797,386
Shares issued on
reinvestment of
distributions 31 323
Shares redeemed (39) (419)
-------- ----------
Net increase 76,188 $ 797,290
======== ==========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 100,569 Class I shares and 10 Class II shares as of September
30, 1995.
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton In-
vestment Counsel, Inc. (TICI), Templeton Global Investors, Inc. (TGII), Frank-
lin Templeton Distributors, Inc. (FTD), and Franklin Templeton Investor Servic-
es, Inc. (FTIS), the Fund's investment manager, administrative manager, princi-
pal underwriter, and transfer agent, respectively.
The Fund pays monthly an investment management fee to TICI 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. TGII had voluntarily agreed to
limit the total expenses of the Fund through April 15, 1995 to an annual rate
of 1.25% of the Fund's average net assets. The amount of the reimbursement for
the six months ended September 30, 1995 is set forth in the Statement of Opera-
tions. For the six months ended September 30, 1995, FTD received net commis-
sions of $11,292 from the sale of the Fund's shares and FTIS received fees of
$31,000.
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 $1,211,982. Class II
shares redeemed within 18 months are subject to a contingent deferred sales
charge. Contingent deferred sales charges of $456 were paid to FTD for the six
months ended September 30, 1995.
15
<PAGE>
Templeton Global Infrastructure Fund
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received fees of $7,500 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 $5,429,123 and $2,781,414, respec-
tively. The cost of securities for federal 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 $ 2,241,176
Unrealized depreciation (2,234,660)
-----------
Net unrealized appreciation $ 6,516
===========
</TABLE>
16
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<PAGE>
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL
INFRASTRUCTURE 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 Global Infrastructure 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.
- --------------------------------------------------------------------------------
TL413 S95 11/95
[RECYCLED PAPER LOGO APPEARS HERE]
TEMPLETON
GLOBAL
INFRASTRUCTURE
FUND
Semi-Annual Report
September 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
