<PAGE>
Templeton Greater
European Fund
- --------------------------------------------------------------------------------
Your Fund's Objective:
The Templeton Greater European Fund seeks to achieve long-term capital
appreciation by investing primarily in equity securities of companies in Greater
Europe (Western, Central and Eastern Europe and Russia).
- --------------------------------------------------------------------------------
November 16, 1995
Dear Shareholder:
It is a pleasure to bring you the first semi-annual report of the Templeton
Greater European Fund covering the period from inception on May 8, 1995, through
September 30, 1995. As shown in the Performance Summary on page 4, the Fund
produced a total return of -1.20% for Class I shares during these first months
of its existence. This is not particularly disturbing, because we search for
investments using a long-term, value-oriented approach to finding undervalued
stocks, and sometimes the bargain stocks we prefer become a bit cheaper before
their value is recognized by the market.
As you know, the Fund's objective is to achieve long-term capital appreciation
by investing primarily in the stocks of countries throughout Greater Europe. In
seeking to achieve this objective, the Fund will initially invest in the more
developed western European countries such as the United Kingdom, France, Germany
and Italy. Our strategy also includes taking advantage of the opportunities
which exist in the newly emerging markets of Central and Eastern Europe,
1
<PAGE>
- --------------------------------------------------------------------------------
Templeton Greater European Fund
Geographic Distribution on 9/30/95
Based on Total Net Assets
[PIE GRAPH APPEARS HERE]
<TABLE>
<S> <C>
Austrian Stocks 2.6%
Danish Stocks 2.6%
French Stocks 11.7%
German Stocks 12.4%
Greek Stocks 1.8%
United Kingdom Stocks 12.9%
Short-Term Obligations &
Other Net Assets 56.0%
</TABLE>
including the Czech Republic, Hungary, Poland, and Russia. Finally, we seek out
investments in southern European countries such as Greece and Turkey. This
regional focus is designed to give the Fund the potential opportunity to find
the best bargains available anywhere on the continent for its shareholders.
During the period under review, we took initial positions in six countries, with
the largest portions in the U.K., Germany, and France. We look forward to
deploying our cash as bargain opportunities present themselves, and we are
confident of finding many opportunities as we search among the more than 20
Greater European stock markets.
On September 30, 1995, Europe was still lagging behind the U.S. in its economic
recovery, although each country was moving at its own pace. The French economy,
which stood out because it was weighed down by its public sector deficit and
high unemployment, greatly underperformed the rest of Europe. Not surprisingly,
we are actively seeking bargains in this market. In Spain, political scandals
and the upcoming elections led to a volatile stock market. Monetary tightening
earlier this year raised interest rates and slowed economic growth. However, we
believe that interest rates will soon begin decreasing and signs of an expanding
economy may become visible within the next six months. The Italian market has
also been volatile due to concerns that Italy may not meet the European Monetary
Union criteria for inclusion in a single currency in 1999. Growth stabilized in
the U.K., with investment being encouraged by strong corporate profits and low,
real interest rates.
Eastern European countries have begun to adopt innovative strategies to improve
their economic situations. For example, the Czech Republic has kept its exchange
rate stable
2
<PAGE>
- --------------------------------------------------------------------------------
Templeton Greater European 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>
Lex Service PLC; Business &
Public Services, United Kingdom 2.8%
- --------------------------------------------------------------------------------
BICC; Electronic Components &
Instruments, United Kingdom 2.6%
- --------------------------------------------------------------------------------
Dawson International PLC;
Textiles & Apparel, United Kingdom 2.6%
- --------------------------------------------------------------------------------
Tele Danmark AS, B; Telecommunications,
Denmark 2.6%
- --------------------------------------------------------------------------------
Raine PLC; Construction & Housing,
United Kingdom 2.2%
- --------------------------------------------------------------------------------
Total SA, B; Energy Sources, France 1.9%
- --------------------------------------------------------------------------------
Peugeot SA; Automobiles, France 1.9%
- --------------------------------------------------------------------------------
Ecco SA; Business & Public Services,
France 1.9%
- --------------------------------------------------------------------------------
Deutsche Bank AG; Banking, Germany 1.9%
- --------------------------------------------------------------------------------
Meunchener Rueckversicherungs-
Gesellschaft; Insurance, Germany 1.8%
- --------------------------------------------------------------------------------
</TABLE>
For a complete list of portfolio holdings, see page 7 of this report.
relative to a basket of European currencies over the past four years. According
to some economists, its currency, on a purchasing power parity basis, is
undervalued by some 140% against the U.S. dollar. In fact, the Czech crown has
appreciated against the U.S. dollar over last year. Poland and Hungary are both
actively privatizing former state-owned companies via new share offerings on
their local stock exchanges or through direct sale, mainly to Western firms.
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 and
lesser liquidity of these markets.
We are positive about the outlook for investing in Greater European companies
and believe that our disciplined approach to finding undervalued securities in
this region should provide our shareholders with significant investment
opportunities as trade barriers are brushed aside and the economic integration
of Europe continues. Thank you for investing with the Templeton Greater European
Fund. We look forward to reporting to you again on our progress in the March 31,
1996 Annual Report.
Sincerely,
/s/ Mark Holowesko
Mark Holowesko, CFA
President
Templeton Global Investment Trust
/s/ Dorian B. Foyil
Dorian B. Foyil
Portfolio Manager
Templeton Greater European Fund
3
<PAGE>
- --------------------------------------------------------------------------------
Performance Summary
Templeton Greater European Fund Class I shares provided a total return of -1.20%
for the nearly five-month period from May 8, 1995, the Fund's inception date,
through September 30, 1995. The Fund's Class II shares provided a total return
of -1.40% for the same period. Total return measures the change in value of an
investment and does not include initial or contingent deferred sales charges.
As measured by net asset value, the price of the Fund's Class I shares decreased
from $10.00 on May 8, 1995, to $9.88 on September 30, 1995, while the price of
the Fund's Class II shares decreased from $10.00 to $9.86 during the same
period.
During the abbreviated five-month period, no distributions were made to either
Class I or Class II shareholders. The Fund intends to pay a dividend at least
annually representing substantially all of its net investment income and any net
realized capital gains. 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.
- --------------------------------------------------------------------------------
Templeton Greater European Fund
Period Ended September 30, 1995
<TABLE>
<CAPTION>
Since
Inception
(5/8/95)
<S> <C>
Aggregate Total Return/1/
Class I Shares -6.88%
Class II Shares -3.36%
Cumulative Total Return/2/
Class I Shares -1.20%
Class II Shares -1.40%
</TABLE>
1. Aggregate total return represents the change in value of an investment over
the period indicated and reflects the current maximum 5.75% initial sales charge
for Class I shares and 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. See note below.
2. Cumulative total return measures the change in value of an investment over
the period indicated and does not include the maximum 5.75% initial sales charge
for Class I shares, or the 1.00% initial sales charge and 1.00% CDSC for Class
II shares, applicable to shares redeemed within the first 18 months of
investment. See note below.
Note: Class I and Class II shares are subject to different fees and expenses,
which will affect their respective 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. 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 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.
- --------------------------------------------------------------------------------
4
<PAGE>
Templeton Greater European Fund
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS I
------------------
MAY 8, 1995
(COMMENCEMENT OF
OPERATIONS) TO
SEPTEMBER 30, 1995
(UNAUDITED)
------------------
<S> <C>
Net asset value, beginning of period $ 10.00
-------
Income from investment operations:
Net investment income .06
Net realized and unrealized loss (.18)
-------
Total from investment operations (.12)
-------
Net asset value, end of period $ 9.88
=======
TOTAL RETURN * (1.20)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 2,946
Ratio of expenses to average net assets 4.58%**
Ratio of expenses, net of reimbursement, to average net
assets 1.85%**
Ratio of net investment income to average net assets 3.22%**
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED.
** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
Templeton Greater European Fund
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
CLASS II
------------------
MAY 8, 1995
(COMMENCEMENT OF
OPERATIONS) TO
SEPTEMBER 30, 1995
(UNAUDITED)
------------------
<S> <C>
Net asset value, beginning of period $ 10.00
-------
Income from investment operations:
Net investment income .08
Net realized and unrealized loss (.22)
-------
Total from investment operations (.14)
-------
Net asset value, end of period $ 9.86
=======
TOTAL RETURN * (1.40)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 1,136
Ratio of expenses to average net assets 5.23%**
Ratio of expenses, net of reimbursement, to average net
assets 2.50%**
Ratio of net investment income to average net assets 2.77%**
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS OR THE DEFERRED CONTINGENT
SALES CHARGE. NOT ANNUALIZED.
** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Templeton Greater European Fund
Investment Portfolio, September 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ----------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS: 40.6%
- ----------------------------------------------------------------------
Automobiles: 3.6%
Peugeot SA Fr. 560 $ 76,555
Volkswagen AG Ger. 222 71,929
----------
148,484
- ----------------------------------------------------------------------
Banking: 1.9%
Deutsche Bank AG Ger. 1,589 75,703
- ----------------------------------------------------------------------
Building Materials & Components: 1.6%
Anglian Group PLC U.K. 32,500 63,141
- ----------------------------------------------------------------------
Business & Public Services: 4.7%
Ecco SA Fr. 440 76,506
Lex Service PLC U.K. 20,700 115,089
----------
191,595
- ----------------------------------------------------------------------
Construction & Housing: 3.9%
European Techniki Gr. 7,100 71,396
Raine PLC U.K. 257,900 89,618
----------
161,014
- ----------------------------------------------------------------------
Electronic Components & Instruments: 2.6%
BICC U.K. 22,610 107,852
- ----------------------------------------------------------------------
Energy Sources: 3.6%
Societe Elf Aquitane SA Fr. 1,020 68,849
Total SA, B Fr. 1,280 77,481
----------
146,330
- ----------------------------------------------------------------------
Insurance: 1.8%
Muenchener Rueckversicherungs-
Gesellschaft Ger. 41 74,081
- ----------------------------------------------------------------------
Merchandising: 2.9%
Karstadt AG Ger. 165 73,205
W.H. Smith Group U.K. 7,400 43,048
----------
116,253
- ----------------------------------------------------------------------
Metals & Mining: 3.6%
Bohler Uddeholm AG, 144a Aut. 488 34,873
Pechiney SA, invt. ctf. Fr. 634 40,567
Vallourec Fr. 1,600 69,226
----------
144,666
- ----------------------------------------------------------------------
</TABLE>
7
<PAGE>
Templeton Greater European Fund
Investment Portfolio, September 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS (CONT.)
- ------------------------------------------------------------------------------
Telecommunications: 4.3%
Alcatel Cable SA Fr. 1,220 $ 67,406
Tele Danmark AS, B Den. 2,050 105,948
----------
173,354
- ------------------------------------------------------------------------------
Textiles & Apparel: 2.6%
Dawson International PLC U.K. 55,500 107,825
- ------------------------------------------------------------------------------
Utilities--Electrical & Gas: 1.7%
VEBA AG Ger. 1,794 71,120
- ------------------------------------------------------------------------------
Wholesale & International Trade: 1.8%
Computer 2000 AG Ger. 210 73,698
----------
TOTAL COMMON STOCKS (cost $1,717,868) 1,655,116
- ------------------------------------------------------------------------------
PREFERRED STOCKS: 3.4%
- ------------------------------------------------------------------------------
Baumax AG, pfd. Aut. 1,860 72,752
Krones AG Herman Kronseder
Maschinen Fabrik, pfd. Ger. 174 66,970
----------
TOTAL PREFERRED STOCKS (cost $151,403) 139,722
- ------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY*
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SHORT TERM OBLIGATIONS: 68.1% (cost
$2,778,817)
- ------------------------------------------------------------------------------
U.S. Treasury Bills, 5.16% to
5.37% with
maturities to 11/16/95 U.S. 2,791,000 2,779,589
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS: 112.1% (cost
$4,648,088) 4,574,427
OTHER ASSETS, LESS LIABILITIES: (12.1)% (492,312)
----------
TOTAL NET ASSETS: 100.0% $4,082,115
==========
</TABLE>
* CURRENCY OF COUNTRY INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Templeton Greater European Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (unaudited)
<TABLE>
<S> <C>
Assets:
Investments in
securities, at value
(identified cost
$4,648,088) $4,574,427
Receivables:
Fund shares sold 51,722
Dividends and
interest 607
Expense
reimbursement 10,520
Unamortized
organization costs 59,150
----------
Total assets 4,696,426
----------
Liabilities:
Payables:
Investment
securities
purchased 582,002
Fund shares
redeemed 1,012
Accrued expenses 31,297
----------
Total liabilities 614,311
----------
Net assets, at value $4,082,115
==========
Net assets consist of:
Undistributed net
investment income $ 27,805
Net unrealized
depreciation (73,661)
Accumulated net
realized loss (18,835)
Net capital paid in
on shares of
beneficial interest 4,146,806
----------
Net assets, at value $4,082,115
==========
Class I:
Net asset value per
share
($2,945,590 / 298,127
shares outstanding) $ 9.88
==========
Maximum offering
price
($9.88 / 94.25%) $ 10.48
==========
Class II:
Net asset value per
share
($1,136,525 / 115,311
shares outstanding) $ 9.86
==========
Maximum offering
price
($9.86 / 99.00%) $ 9.96
==========
</TABLE>
STATEMENT OF OPERATIONS
for the period May 8, 1995 (commencement of operations) to September 30, 1995
(unaudited)
<TABLE>
<S> <C> <C>
Investment income:
(net of $520 foreign taxes withheld)
Dividends $ 2,945
Interest 43,868
--------
Total income $ 46,813
Expenses:
Management fees (Note 3) 6,819
Administrative fees (Note 3) 1,364
Distribution fees (Note 3)
Class I 2,016
Class II 3,372
Transfer agent fees (Note 3) 625
Custodian fees 500
Reports to shareholders 13,250
Audit fees 4,000
Legal fees (Note 3) 500
Registration and filing fees 4,665
Trustees' fees and expenses 1,500
Amortization of organization costs 5,075
Other 275
--------
Total expenses 43,961
Less expenses reimbursed
(Note 3) (24,953)
--------
Total expenses less reimbursement 19,008
--------
Net investment income 27,805
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 46
Foreign currency transactions (18,881)
--------
(18,835)
Net unrealized depreciation on investments (73,661)
--------
Net realized and unrealized loss (92,496)
--------
Net decrease in net assets
resulting from operations $(64,691)
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Templeton Greater European Fund
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MAY 8, 1995
(COMMENCEMENT OF
OPERATIONS) TO
SEPTEMBER 30, 1995
(UNAUDITED)
------------------
<S> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 27,805
Net realized loss on investment and foreign currency
transactions (18,835)
Net unrealized depreciation (73,661)
----------
Net decrease in net assets resulting from operations (64,691)
Fund share transactions (Note 2)
Class I 2,993,213
Class II 1,153,593
----------
Net increase in net assets 4,082,115
Net assets:
Beginning of period --
----------
End of period $4,082,115
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Templeton Greater European Fund
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Greater European 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 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.
11
<PAGE>
Templeton Greater European Fund
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
The Fund offers two classes of shares: Class I shares and Class II shares.
Shares of each class are identical except for their initial sales load, a con-
tingent deferred sales charge on Class II shares, distribution fees, and voting
rights on matters affecting a single class. At September 30, 1995, there was an
unlimited number of shares of beneficial interest authorized ($.01 par value).
Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
CLASS I CLASS II
--------------------- --------------------
FOR THE PERIOD FOR THE PERIOD
MAY 8, 1995 MAY 8, 1995
(COMMENCEMENT OF (COMMENCEMENT OF
OPERATIONS) THROUGH OPERATIONS) THROUGH
SEPTEMBER 30, 1995 SEPTEMBER 30, 1995
--------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------------------
<S> <C> <C> <C> <C>
Shares sold 318,661 $ 3,199,580 115,311 $ 1,153,593
Shares redeemed (20,534) (206,367) -- --
-------- ----------- -------- -----------
Net increase 298,127 $ 2,993,213 115,311 $ 1,153,593
======== =========== ======== ===========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 49,955 Class I shares and 49,955 Class II shares as of Septem-
ber 30, 1995.
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 1.85% and 2.50% of average net assets of Class I
and II shares, respectively through December 31, 1995. The amount of the reim-
bursement for the period ended September 30, 1995 is set forth in the Statement
of Operations. For the period ended September 30, 1995, FTD paid net commis-
sions of $3,817 from the sale of the Fund's shares and FTIS received fees of
$625.
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 $39,055. 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 period
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 $500 for the period ended September
30, 1995.
12
<PAGE>
Templeton Greater European Fund
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
4. PURCHASES AND SALES OF SECURITIES
Purchases of securities (excluding short-term securities) for the period ended
September 30, 1995 aggregated $1,869,270. There were no sales of securities
during this period. 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 $ 6,560
Unrealized depreciation (80,221)
--------
Net unrealized depreciation $(73,661)
========
</TABLE>
13
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<PAGE>
TEMPLETON GREATER
EUROPEAN 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
Greater European 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]
TL419 S95 11/95
TEMPLETON
GREATER
EUROPEAN
FUND
Semi-Annual Report
September 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
