<PAGE>
Templeton Latin America
Fund
- --------------------------------------------------------------------------------
Your Fund's Objective:
The Templeton Latin America Fund seeks long-term capital appreciation through
investing at least 65% of its assets in equity and debt securities of issuers in
Latin America.
- --------------------------------------------------------------------------------
November 16, 1995
Dear Shareholder:
We are pleased to bring you the first semi-annual report for the Templeton Latin
America Fund, which covers the period from the inception of the Fund on May 8,
1995, through September 30, 1995. As shown in the Performance Summary on page 4,
the Fund's Class I shares delivered a total return of 2.20% for the first months
of the Fund's existence.
At the end of the reporting period, 17.8% of the Fund's assets were invested in
equities, with the remaining 82.2% in cash and other liquid assets. Since the
Fund is new, being less than fully invested at this time does not unduly concern
us. At Templeton, we buy stocks based on a discipline that compares fundamental
valuations. We will not buy a stock that is trading above our price-limit, which
is based on our assessment of its true value. Latin American stock markets have
recently been characterized by their growth and their volatility; two or three
percent upward and downward movements are quite common. By placing our orders at
levels where we will be comfortable holding the stock for five years or more, we
try to take advantage of this volatility. At the end of the
1
<PAGE>
- --------------------------------------------------------------------------------
Templeton Latin America Fund
Geographic Distribution on 9/30/95
Based on Total Net Assets
[PIE GRAPH APPEARS HERE]
<TABLE>
<S> <C>
Argentine Stocks 4.1%
Brazilian Stocks 7.8%
Chilean Stocks 1.2%
Mexican Stocks 4.7%
Short-Term Obligations &
Other Net Assets 82.2%
</TABLE>
period under review, we had a number of limit orders in these markets that would
have fully utilized the Fund's assets, if executed, but prices did not reach a
low enough level for this to occur.
On September 30, 1995, Brazil had the Fund's largest geographic weighting. Our
holdings there included Telecomunicacoes de Sao Paulo SA, a telecommunications
company, and Petrobras Petroleo Brasileiro SA, an energy-source company.
Although Brazilian tax reform and privatization should bring many possibilities
to the country, our enthusiasm is tempered by its stock market's extreme
volatility, and we are waiting for prices to reach our lower limits, as
described above.
One of our most attractive positions is Empresas ICA, the Mexican construction
company which has been a beneficiary of infrastructure-related building in
Mexico and in parts of the United States. It may be significantly undervalued,
considering its long-term earnings potential and its solid balance sheet.
Although our Argentine holding, Mirgor, has not performed as well as Empresas
ICA, we think it also offers great potential. This company manufactures air-
conditioning units for cars, which is becoming a standard feature in a large
percentage of cars in Latin America, and the company has contracts with some of
the major auto assemblers in the region. We believe that the current turmoil in
Argentine politics has clouded the company's worth to investors, and we may add
to our position in the future.
Looking ahead, we are optimistic about long-term potential opportunities in
Latin America. About 70% of the population is under the age of 20, which means
the workforce will be entering a time of increased productivity and spending in
the years ahead. Also, Latin America has tremendous natural resources. In late
1990 the biggest oil strike in the Americas occurred in Columbia, and only 20%
of the country has been explored; Chile is one of the largest producers of
copper and paper products in the region; and Brazil has vast resources. More
importantly,
2
<PAGE>
- --------------------------------------------------------------------------------
Templeton Latin America 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>
Grupo Embotellador de Mexico SA, B,
Food & Household Products, Mexico 2.0%
- --------------------------------------------------------------------------------
Mirgor SA Comercial Industrial Financiera Inmo,
Building Materials & Components, Argentina 1.9%
- --------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora SA, ADR,
Construction & Housing, Mexico 1.8%
- --------------------------------------------------------------------------------
Telesp-Telecomunicacoes de Sao Paulo SA,
Telecommunications, Brazil 1.5%
- --------------------------------------------------------------------------------
Telebras-Telecomunicacoes Brasileiras SA, ADR,
Telecommunications, Brazil 1.5%
- --------------------------------------------------------------------------------
Companhia Siderurgica Nacional,
Metals & Mining, Brazil 1.3%
- --------------------------------------------------------------------------------
Petrobras-Petroleo Brasileiro SA,
Energy Sources, Brazil 1.2%
- --------------------------------------------------------------------------------
Transportadora de Gas del Sur SA, ADR, B,
Energy Sources, Argentina 1.2%
- --------------------------------------------------------------------------------
Cristalerias de Chile SA, ADR,
Beverages & Tobacco, Chile 1.2%
- --------------------------------------------------------------------------------
Cia Energetica de Minas Gerais, ADR,
Utilities-Electric & Gas, Brazil 1.2%
- --------------------------------------------------------------------------------
</TABLE>
For a detailed listing of portfolio holdings, please see page 7 of this report.
many Latin American governments appear to be continuing on the path of
privatization and other market-friendly reforms.
It should be remembered, of course, that investing in emerging markets
concentrated in a single region involves special considerations, which may
include risks related to market and currency volatility, adverse social and
political developments, and the relatively small size and lesser liquidity of
these markets. While short-term volatility can be disconcerting, declines of as
much as 30% to 40% are not unusual in emerging markets. For example, the Mexican
stock market has increased 358% in the last five years, but has suffered six
declines of more than 20% during that time./1/
We believe that the Templeton approach of long-term, disciplined, bottom-up
investing is appropriate for the challenging and volatile markets of Latin
America. Thank you for investing in the Templeton Latin America Fund. We
appreciate your support and will update you about our progress in the March 31,
1996 annual report.
Sincerely,
/s/ Mark Holowesko
Mark Holowesko
President
Templeton Latin America Fund
/s/ Jane Siebels
Jane Siebels
Portfolio Manager
Templeton Latin America Fund
1. Source: Bloomberg. Based on daily consecutive declines over the five-year
period ending September 30, 1995.
3
<PAGE>
- --------------------------------------------------------------------------------
Performance Summary
Templeton Latin America Fund Class I shares provided a total return of 2.20% for
the nearly five months from May 8, 1995, the Fund's inception date, through
September 30, 1995. The Fund's Class II shares provided a total return of 1.90%
for the same period. Total return measures the change in value of an investment,
and does not include sales charges.
As measured by net asset value, the price of the Fund's Class I shares increased
from $10.00 on May 8, 1995 to $10.22 on September 30, 1995, while the Class II
shares increased from $10.00 on May 8, 1995 to $10.19 on September 30, 1995.
During the abbreviated five-month period, Class I and Class II shareholders did
not receive any dividend or capital gains distributions.
- --------------------------------------------------------------------------------
Templeton Latin America Fund
Period Ended September 30, 1995
<TABLE>
<CAPTION>
Since
Inception
(5/8/95)
<S> <C>
Aggregate Total Return/1/
Class I Shares -3.68%
Class II Shares -0.11%
Cumulative Total Return/2/
Class I Shares 2.20%
Class II Shares 1.90%
</TABLE>
1. Aggregate total return represents the change in value of an investment over
the period indicated and reflects the current 5.75% maximum 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 current 5.75% maximum 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, which will
affect their performance. Please see the prospectus for more details regarding
Class I and Class II shares.
Investment return and principal value will fluctuate with market conditions,
currencies and the economic 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. Because of these factors, your shares, when
redeemed, may be worth more or less than their original cost. Past performance
is not predictive of future results.
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 waive a portion of their
respective fees, which increases total return to shareholders. If the managers
had not taken this action, total returns 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 Latin America 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 gain .16
------
Total from investment operations .22
------
Net asset value, end of period $10.22
======
TOTAL RETURN * 2.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $3,308
Ratio of expenses to average net assets 4.98%**
Ratio of expenses, net of reimbursement, to average net
assets 2.35%**
Ratio of net investment income to average net assets 2.63%**
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED.
** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
Templeton Latin America 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 .05
Net realized and unrealized gain .14
------
Total from investment operations .19
------
Net asset value, end of period $10.19
======
TOTAL RETURN * 1.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 871
Ratio of expenses to average net assets 5.63%**
Ratio of expenses, net of reimbursement, to average net
assets 3.00%**
Ratio of net investment income to average net assets 1.99%**
</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 Latin America Fund
Investment Portfolio, September 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS: 12.5%
- -------------------------------------------------------------------------------
Beverages & Tobacco: 1.2%
Cristalerias de Chile SA, ADR Chil. 2,000 $ 49,500
- -------------------------------------------------------------------------------
Building Materials & Components: 2.9%
Corcemar Corp. Arg. 9,200 40,022
Mirgor SA Comercial Industrial
Financiera Inmobiliari
Agropecuaria, ADR, 144a Arg. 34,000 80,750
----------
120,772
- -------------------------------------------------------------------------------
Construction & Housing: 1.8%
Empresas ICA Sociedad
Controladora SA, ADR Mex. 6,700 77,050
- -------------------------------------------------------------------------------
Energy Sources: 1.2%
Transportadora de Gas del Sur
SA, ADR, B Arg. 4,800 50,400
- -------------------------------------------------------------------------------
Food & Household Products: 2.9%
Grupo Embotellador de Mexico
SA, B Mex. 14,500 84,091
Herdez SA de CV, A Mex. 150,000 38,558
----------
122,649
- -------------------------------------------------------------------------------
Metals & Mining: 1.3%
Companhia Siderurgica Nacional Braz. 2,000,000 52,883
- -------------------------------------------------------------------------------
Utilities-Electrical & Gas: 1.2%
Cia Energetica de Minas
Gerais, ADR Braz. 2,200 49,168
----------
TOTAL COMMON STOCKS (cost $509,094) 522,422
- -------------------------------------------------------------------------------
PREFERRED STOCKS: 5.3%
- -------------------------------------------------------------------------------
Banco Bradesco SA, pfd. Braz. 5,000,000 47,741
Petrobras-Petroleo Brasileiro
SA, pfd. Braz. 480,000 50,621
Telebras-Telecomunicacoes
Brasileiras SA, pfd., ADR Braz. 1,300 61,669
Telesp-Telecomunicacoes de Sao
Paulo SA, pfd. Braz. 380,000 62,320
----------
TOTAL PREFERRED STOCKS (cost $204,051) 222,351
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY*
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SHORT TERM OBLIGATIONS: 82.6% (cost
$3,451,375)
- -------------------------------------------------------------------------------
U.S. Treasury Bills, 5.16% to
5.41% with
maturities to 11/24/95 U.S. 3,467,000 3,452,343
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS: 100.4% (cost
$4,164,520) 4,197,116
OTHER ASSETS, LESS LIABILITIES: (0.4)% (18,586)
----------
TOTAL NET ASSETS: 100.0% $4,178,530
==========
</TABLE>
* CURRENCY OF COUNTRY INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Templeton Latin America Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (unaudited)
<TABLE>
<S> <C>
Assets:
Investments in
securities, at value
(identified cost
$4,164,520) $4,197,116
Cash 444
Receivables:
Fund shares sold 65,612
Dividends and
interest 174
Expense
reimbursement 11,185
Unamortized
organization costs 66,502
----------
Total assets 4,341,033
----------
Liabilities:
Payables:
Investment
securities
purchased 124,225
Fund shares
redeemed 21,482
Accrued expenses 16,796
----------
Total liabilities 162,503
----------
Net assets, at value $4,178,530
==========
Net assets consist of:
Undistributed net
investment income $ 24,046
Net unrealized
appreciation 32,596
Accumulated net
realized loss (922)
Net capital paid in
on shares of
beneficial interest 4,122,810
----------
Net assets, at value $4,178,530
==========
Class I:
Net asset value per
share
($3,307,397 / 323,647
shares outstanding) $ 10.22
==========
Maximum offering
price
($10.22 / 94.25%) $ 10.84
==========
Class II:
Net asset value per
share
($871,133 / 85,524
shares outstanding) $ 10.19
==========
Maximum offering
price
($10.19 / 99.00%) $ 10.29
==========
</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 $94 foreign taxes withheld)
Dividends $ 6,121
Interest 42,410
--------
Total income $48,531
Expenses:
Management fees (Note 3) 12,136
Administrative fees (Note 3) 1,457
Distribution fees (Note 3)
Class I 2,562
Class II 2,431
Transfer agent fees (Note 3) 1,600
Custodian fees 250
Reports to shareholders 14,650
Audit fees 2,250
Legal fees (Note 3) 1,500
Registration and filing fees 2,728
Trustees' fees and expenses 2,600
Amortization of organization costs 5,725
Other 203
--------
Total expenses 50,092
Less expenses reimbursed (Note 3) (25,607)
--------
Total expenses
less reimbursement 24,485
-------
Net investment income 24,046
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 70
Foreign currency transactions (992)
--------
(922)
Net unrealized appreciation
on investments 32,596
--------
Net realized and unrealized gain 31,674
-------
Net increase in net assets resulting from operations $55,720
=======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Templeton Latin America 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 $ 24,046
Net realized loss on investment and foreign currency
transactions (922)
Net unrealized appreciation 32,596
----------
Net increase in net assets resulting from operations 55,720
Fund share transactions (Note 2)
Class I 3,263,310
Class II 859,500
----------
Net increase in net assets 4,178,530
Net assets:
Beginning of period --
----------
End of period $4,178,530
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Templeton Latin America Fund
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Latin America 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.
10
<PAGE>
Templeton Latin America 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
MAY 8, 1995 FOR THE PERIOD
(COMMENCEMENT OF MAY 8, 1995
OPERATIONS) (COMMENCEMENT OF
THROUGH OPERATIONS) THROUGH
SEPTEMBER 30, 1995 SEPTEMBER 30, 1995
------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Shares sold 352,750 $3,560,321 85,633 $ 860,611
Shares redeemed (29,103) (297,011) (109) (1,111)
------- ---------- -------- ----------
Net increase 323,647 $3,263,310 85,524 $ 859,500
======= ========== ======== ==========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 49,955 Class I shares and 50,000 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 1.25% 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 2.35% and 3.00% 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 $213 from the sale of the Fund's shares and FTIS received fees of
$1,600.
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 $56,239. 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 $1,500 for the period ended September
30, 1995.
11
<PAGE>
Templeton Latin America 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 $713,145. There were no sales of securities dur-
ing 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 $ 62,800
Unrealized depreciation (30,204)
--------
Net unrealized appreciation $ 32,596
========
</TABLE>
12
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<PAGE>
TEMPLETON LATIN
AMERICA 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 Latin
America 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]
TL418 S95 11/95
TEMPLETON
LATIN
AMERICA
FUND
Semi-Annual Report
September 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
