<PAGE>
Templeton Global Rising
Dividends Fund
May 15, 1995
Dear Shareholder:
We are pleased to bring you the annual report of the Templeton Global Rising
Dividends Fund, which covers the period ended March 31, 1995. Since its
inception on March 14, 1994, the Fund's objective has been capital appreciation
by investing primarily in the equity securities of domestic and foreign
companies that have a history of paying consistently rising dividends. Effective
July 1, 1995, however, the fund's name will be changed to Templeton Growth and
Income Fund, and its objective will change to a combination of current income
and capital appreciation.
Under the new investment objective, the Fund can invest in debt securities for
the purpose of generating current income, as well as capital appreciation, with
no limitation as to the percentage of total assets invested in debt securities.
Also, the percentage of assets invested in equity or debt securities may vary
from time to time, based on the potential of various investment vehicles. If you
have any questions regarding these changes, you may contact Franklin Templeton
Fund Information toll-free at 1-800/DIAL BEN.
The Fiscal Year in Review
The twelve months ended March 31, 1995 were difficult for many global investors
due to currency devaluations and sharp stock market corrections. Although your
Fund was not immune to these events, a larger than normal cash position kept it
from posting a more significant negative return for the period. As shown in the
Performance Summary on page 4, the fund's total return, including all sales
charges, was -4.40%. Excluding the sales charge, the fund posted a total return
of +1.43%.
Since our semi-annual report for the period ended September 30, 1994, the Fund's
assets have grown by 47%, and total net assets are now approaching $6 million.
During the past six months, we have been patiently selecting stocks in which to
invest, preferring to buy at what may be bargain prices. As of March 31, 1995,
50.4% of the fund was invested in equities and the balance was held in liquid
government securities. Our investments were allocated across 10 countries, with
the largest portion in Europe (22.3%), followed by North America (16.9%), Asia
(7.1%) and Australia (2.8%). Since our last report, we increased our investment
activity in the Asian region through the purchase of a number of high quality
1
<PAGE>
- --------------------------------------------------------------------------------
Templeton Global Rising Dividends Fund
Geographic Distribution on 3/31/95
Based on Total Net Assets
[PIE CHART APPEARS HERE SHOWING
GEOGRAPHIC DISTRIBUTION OF THE FUND]
<TABLE>
<CAPTION>
Description Amount
----------------------- ----------------
<S> <C>
Latin America 1.3%
Australia 2.8%
Asia 7.1%
United States 16.9%
Europe 22.3%
Short-term Obligations &
Other Net Assets 49.6%
</TABLE>
stocks in both Hong Kong and Australia. We now believe that much of the rise in
world interest rates is behind us, and we have been actively purchasing higher
yielding utility and insurance stocks, mainly in Europe and the U.S.
Most of the additions to our list of bargain stocks have been in real estate,
commodities and interest-rate sensitive stocks globally, and, to some degree, in
the emerging markets (8.4% of total net assets). The energy sector has been our
principal exposure to commodities. Commodities stocks represent an area that has
under-performed for several years, has limited new supply, sells at prices below
replacement cost, and should benefit from growing demand. Emerging market demand
for energy commodities is particularly notable. For example, the two billion
people of China and India consume, on average, one barrel of oil per person per
year -- one-tenth the level of other emerging market countries such as Taiwan,
and one-thirtieth the level of North America. Based on our current research, we
would expect our exposure to hard assets such as paper, oil and metals as a
whole to increase with time.
Prices of financial and certain utility stocks, generally influenced by levels
of interest rates, fell dramatically over the last six months. In essence,
stocks are influenced by levels of interest rates, yet some are perceived to be
more sensitive than others. The sudden rise in the level of global interest
rates, intended to offset inflation, brought price declines, some as much as 40%
to 50%, for banks, brokerage firms, insurance companies, utilities, companies
with high debt levels, and bonds. In our view, the prices of many such
securities in the interest-rate sensitive sector appear to have overly
discounted the likelihood of additional interest rate increases in 1995, thus
presenting us with further investment opportunities. In particular, we have
increased our exposure to banks and brokerage stocks in both Europe and the U.S.
2
<PAGE>
Templeton Global Rising
Dividends Fund
Top 10 Holdings on 3/31/95
Based on Total Net Assets
% of Total
Company, Industry, Country Net Assets
- --------------------------------------------------------------------------------
Banco Popular Espanol
Banking, Spain 2.5%
- --------------------------------------------------------------------------------
Chase Manhattan Corp.
Banking, United States 2.5%
- --------------------------------------------------------------------------------
Thames Water Group PLC
Utilities - Electrical & Gas, United Kingdom 2.5%
- --------------------------------------------------------------------------------
Tesco PLC
Merchandising, United Kingdom 2.1%
- --------------------------------------------------------------------------------
Medeva PLC
Health & Personal Care, United Kingdom 2.1%
- --------------------------------------------------------------------------------
Texas Utilities Electric Co.
Utilities - Electrical & Gas, United States 2.1%
- --------------------------------------------------------------------------------
Pharmacia AB, A
Health & Personal Care, Sweden 2.0%
- --------------------------------------------------------------------------------
Kwik Save Group PLC
Merchandising, United Kingdom 2.0%
- --------------------------------------------------------------------------------
Banco Central Hispano
Banking, Spain 1.9%
- --------------------------------------------------------------------------------
Providian Corp.
Insurance, United States 1.9%
- --------------------------------------------------------------------------------
For a complete list of portfolio holdings, please see page 6 of this report.
Looking Forward
What do the next twelve months hold for investors? That's a difficult question.
Although many claim to hold great insight into potential outcomes, no one has
been consistently correct over the short term. However, our level of optimism
has risen, largely because of the increased number of new names appearing on our
bargain stock list. Today, this list is twice as large as our sell list, and at
the higher end of our historical range of 100 to 200 names. The list of
countries represented in the Fund should continue to expand as we find stocks
that meet our investment criteria. There are, of course, special risks involved
with global investing and, in particular, investing in emerging markets related
to market and currency volatility, adverse social and political developments,
and relatively small size and lesser liquidity of these markets. These risks are
discussed in the Fund's prospectus.
We realize your expectations are high. We respect the confidence you have
expressed in our management by placing your assets in our care and are dedicated
to the tasks at hand. Thank you for giving us the opportunity to work for you.
Sincerely,
/s/ Mark Holowesko
Mark Holowesko, CFA
President
Templeton Global Investment Trust
/s/ Dorian B. Foyil
Dorian B. Foyil
Portfolio Manager
Templeton Global Rising Dividends Fund
3
<PAGE>
Performance Summary
The Templeton Global Rising Dividends Fund reported a total return of +1.43% for
the one-year period ended March 31, 1995. Total return measures the change in
value of an investment, assuming reinvestment of dividends, and does not include
the maximum initial sales charge.
During the reporting period, the Fund's share price, as measured by net asset
value, increased from $10.01 on March 31, 1994, to $10.05 on March 31, 1995.
Shareholders received 10 cents ($0.10) per share in income distributions.
Distributions will vary depending on income earned by the fund, and past
performance is not predictive of future results.
The graph to the right shows how an investment in the Templeton Global Rising
Dividends Fund has performed, since its inception, against the unmanaged Morgan
Stanley Capital International (MSCI) World Index, which tracks 22 equity markets
worldwide. It also shows the Fund's performance against the Consumer Price Index
(CPI). Please remember that the Fund's performance differs from that of the
index because the index does not contain cash (the Fund generally carries a
certain percentage of cash at any given time) and includes no sales charges or
management expenses. Of course, one cannot invest directly in an index.
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL RISING DIVIDENDS FUND
Total Return Index Comparison
$10,000 Investment (3/14/94 - 3/31-95)
[GRAPH APPEARS HERE SHOWING COMPARISON BETWEEN TEMPLETON GLOBAL RISING DIVIDENDS
FUND, MSCI WORLD INDEX AND THE CPI INDEX]
<TABLE>
<CAPTION>
3/94 3/95
-------- --------
<S> <C> <C>
Templeton Global Rising Dividends Fund $10,000 $ 9,579
MSCI World Index $10,000 $10,722
CPI Index $10,000 $10,280
</TABLE>
*Includes all sales charges and represents the change in value of an investment
over the period shown. Total return assumes reinvestment of dividends and
capital gains. Past performance is not indicative of future trends. Index
includes reinvested dividends.
Source: U.S. Bureau of Labor Statistics.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Templeton Global Rising
Dividends Fund
Periods Ended 3/31/95
<TABLE>
<CAPTION>
Since
Inception
1-year (3/14/94)
<S> <C> <C>
Cumulative
Total Return* 1.43% 1.54%
Average Annual
Total Return** -4.40% -4.09%
</TABLE>
*Cumulative total return represents the change in value of an investment over
the specified periods. It does not include the current maximum 5.75% initial
sales charge.
**Average annual total return represents the average annual change in value
of an investment over the specified periods. It includes the current maximum
5.75% initial sales charge.
All total return calculations assume reinvestment of dividends and capital gains
distributions when paid. Investment return and principal value will fluctuate
with market conditions, currencies and the economic and political climates of
the countries where investments are made. Because of these factors, your shares,
when redeemed, may be worth more or less than their original cost. Past
performance is not predictive of future results.
All total return calculations reflect the deduction of a proportional share of
fund expenses on an annual basis. The fund's manager is waiving a portion of its
management fees which reduces operating expenses and increases total return to
shareholders. Without these reductions, the Fund's total return would have been
lower. The fee waiver may be discontinued at any time.
The historical performance data and total return figures shown in the table
above and in the written analysis of the fund pertain only to Class I shares of
the fund. Class II shares, which the fund began offering on May 1, 1995, are
subject to different fees and expenses, which will affect their performance.
Performance data and total return figures for Class II shares are not yet
available. Please see the prospectus for more details regarding Class I and
Class II shares.
- --------------------------------------------------------------------------------
4
<PAGE>
Templeton Global Rising Dividends Fund
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
MARCH 14, 1994
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
MARCH 31, 1995 MARCH 31, 1994
-------------- -----------------
<S> <C> <C>
Net asset value, beginning of period $ 10.01 $ 10.00
------- -------
Income from investment operations:
Net investment income .16 .009
Net realized and unrealized gain (loss) (.02) .001
------- -------
Total from investment operations .14 .01
Distributions to shareholders from net
investment income (.10) --
------- -------
Change in net asset value .04 .01
------- -------
Net asset value, end of period $ 10.05 $ 10.01
======= =======
TOTAL RETURN* 1.43% 0.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 5,953 $ 100
Ratio of expenses to average net assets 6.11% 32.15%**
Ratio of expenses, net of reimbursement, to
average net assets 1.25% 1.25%**
Ratio of net investment income to average net
assets 2.51% 1.89%**
Portfolio turnover rate 19.33% --
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED IN PERIODS
LESS THAN A YEAR.
** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
Templeton Global Rising Dividends Fund
Investment Portfolio, March 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS: 48.7%
- ------------------------------------------------------------------------------
Aerospace & Military Technical Systems: 1.9%
Boeing Co. U.S. 2,100 $ 113,138
- ------------------------------------------------------------------------------
Banking: 7.0%
Banco Central Hispano Sp. 5,290 115,791
Banco Popular Espanol Sp. 1,160 150,328
Chase Manhattan Corp. U.S. 4,160 148,720
---------
414,839
- ------------------------------------------------------------------------------
Broadcasting & Publishing: 0.1%
Oriental Press Group Limited H.K. 10,000 4,268
- ------------------------------------------------------------------------------
Building Materials & Components: 0.6%
Mirgor SA Comercial Industrial Financiera
Inmobiliaria Arg. 8,800 34,100
- ------------------------------------------------------------------------------
Data Processing & Reproduction: 0.4%
American Software Inc., A U.S. 6,200 24,413
- ------------------------------------------------------------------------------
Electrical & Electronics: 1.0%
Stanilite Pacific Ltd. Aus. 40,082 61,698
- ------------------------------------------------------------------------------
Energy Sources: 0.7%
Valero Energy Corp. U.S. 2,350 43,181
- ------------------------------------------------------------------------------
Food & Household Products: 0.5%
Dairy Farm International Holdings Ltd. H.K. 21,000 26,888
- ------------------------------------------------------------------------------
Health & Personal Care: 5.4%
Ciba-Geigy AG Swtz. 54 35,897
Glaxo PLC U.K. 3,966 45,368
Medeva PLC U.K. 37,115 123,282
Pharmacia AB, A Swe. 6,630 117,609
---------
322,156
- ------------------------------------------------------------------------------
Insurance: 5.1%
Chubb Corp. U.S. 400 31,600
Providian Corp. U.S. 3,260 114,508
Reliastar Financial Corp. U.S. 1,990 67,660
Torchmark Corp. U.S. 2,209 91,674
---------
305,442
- ------------------------------------------------------------------------------
Machinery & Engineering: 1.1%
IHC Caland NV Neth. 2,580 63,945
- ------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
Templeton Global Rising Dividends Fund
Investment Portfolio, March 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS (CONT.)
- -----------------------------------------------------------------------------
Merchandising: 8.5%
Argyll Group PLC U.K. 22,000 $ 102,306
K Mart Corp. U.S. 5,200 71,500
Koninklijke Bijenkorf Beheer NV (KBB) Neth. 1,280 90,204
Kwik Save Group PLC U.K. 13,370 117,416
LI & Fung Ltd. H.K. 2,000 1,345
Tesco PLC U.K. 28,780 124,508
----------
507,279
- -----------------------------------------------------------------------------
Multi-Industry: 1.8%
Pacific Dunlop Ltd. Aus. 47,936 104,708
- -----------------------------------------------------------------------------
Real Estate: 6.2%
Hang Lung Development Co. Ltd. H.K. 68,000 103,777
*Hang Lung Development Co. Ltd., wts. H.K. 6,800 1,038
Hysan Development Co. Ltd. H.K. 29,000 64,511
New World Development Co. Ltd. H.K. 34,000 92,563
Security Capital Industrial Trust U.S. 6,782 108,512
----------
370,401
- -----------------------------------------------------------------------------
Telecommunications: 0.7%
Telefonos de Mexico SA, L, ADR Mex. 1,520 43,320
- -----------------------------------------------------------------------------
Textiles & Apparel: 1.1%
Liz Claiborne Inc. U.S. 1,320 23,430
Nike Inc., B U.S. 600 44,775
----------
68,205
- -----------------------------------------------------------------------------
Utilities-Electrical & Gas: 6.6%
China Light & Power Co. Ltd. H.K. 5,500 26,675
Endesa-Empresa Nacional de Electricidad
SA Sp. 2,200 93,876
Texas Utilities Electric Co. U.S. 3,850 122,238
Thames Water Group PLC U.K. 19,040 148,391
----------
391,180
----------
TOTAL COMMON STOCKS (cost $3,048,319) 2,899,161
- -----------------------------------------------------------------------------
PREFERRED STOCK: 1.7% (cost $103,080)
- -----------------------------------------------------------------------------
Jardine Strategic Holdings Ltd., 7.50%,
conv., pfd. H.K. 78,000 99,060
- -----------------------------------------------------------------------------
</TABLE>
7
<PAGE>
Templeton Global Rising Dividends Fund
Investment Portfolio, March 31, 1995 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
INDUSTRY ISSUE COUNTRY LOCAL CURRENCY VALUE
- ----------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SHORT TERM OBLIGATIONS: 60.7% (cost
$3,612,390)
- ----------------------------------------------------------------------------
U.S. Treasury Bills, 5.46% to
5.67%
with maturities to 5/25/95 U.S. $3,627,000 $3,613,885
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS: 111.1% (cost
$6,763,789) 6,612,106
OTHER ASSETS, LESS LIABILITIES: (11.1)% (658,747)
----------
TOTAL NET ASSETS: 100.0% $5,953,359
==========
</TABLE>
* NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Templeton Global Rising Dividends Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995
<TABLE>
<S> <C>
Assets:
Investments in securities, at value
(identified cost $6,763,789) $6,612,106
Cash 5,761
Receivables:
Investment securities sold 228,676
Fund shares sold 22,595
Administrative fee reimbursement 80,862
Dividends and interest 3,839
Unamortized organization costs 57,412
----------
Total assets 7,011,251
----------
Liabilities:
Payables:
Investment securities purchased 936,367
Fund shares redeemed 62,773
Accrued expenses 58,752
----------
Total liabilities 1,057,892
----------
Net assets, at value $5,953,359
==========
Net assets consists of:
Undistributed net investment income $ 38,177
Net unrealized depreciation (151,683)
Accumulated net realized gain 124,538
Net capital paid in on shares of
beneficial interest 5,942,327
----------
Net assets, at value $5,953,359
==========
Shares outstanding 592,172
==========
Net asset value per share
($5,953,359 / 592,172) $ 10.05
==========
Maximum offering price
($10.05 / 94.25%) $ 10.66
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
for the year ended March 31, 1995
<TABLE>
<S> <C> <C>
Investment income: (net of $2,502 foreign taxes withheld)
Dividends $ 39,708
Interest 90,347
---------
Total income $130,055
Expenses:
Management fees (Note 3) 25,969
Administrative fees (Note 3) 5,188
Distribution fees (Note 3) 12,120
Transfer agent fees (Note 3) 5,800
Custodian fees 9,700
Reports to shareholders 19,400
Audit fees 15,350
Legal fees 23,450
Registration and filing fees 61,100
Trustees' fees and expenses 17,084
Amortization of
organization costs 14,532
Other 1,951
---------
Total expenses 211,644
Less expenses reimbursed
(Note 3) (168,360)
---------
Total expenses
less reimbursement 43,284
--------
Net investment income 86,771
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 131,873
Foreign currency transactions (7,335)
---------
124,538
Net unrealized depreciation
on investments (151,711)
---------
Net realized and
unrealized loss (27,173)
--------
Net increase in net assets resulting from operations $ 59,598
========
</TABLE>
9
<PAGE>
Templeton Global Rising Dividends Fund
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MARCH 14, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
MARCH 31, 1995 MARCH 31, 1994
-------------- ----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 86,771 $ 88
Net realized gain from security and foreign
currency transactions 124,538 --
Net unrealized appreciation (depreciation) (151,711) 28
---------- --------
Net increase in net assets resulting from
operations 59,598 116
Distributions to shareholders
from net investment income (48,682) --
Fund share transactions (Note 2) 5,842,107 220
---------- --------
Net increase in net assets 5,853,023 336
Net assets:
Beginning of period 100,336 100,000
---------- --------
End of period $5,953,359 $100,336
========== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Templeton Global Rising Dividends Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Global Rising Dividends Fund (the Fund) is a separate series of Tem-
pleton Global Investment Trust (the Trust), a Delaware business trust, which is
an open-end, diversified management investment company registered under the In-
vestment Company Act of 1940.
Subsequent to year end, the Fund's shareholders voted to change the Fund's name
and investment objective. Effective July 1, 1995, the new name of the Fund will
be Templeton Growth and Income Fund, and its investment objective will be a
combination of income and capital appreciation.
The following summarizes the Fund's significant accounting policies.
A. Securities Valuations:
Securities listed or traded on a recognized national or foreign stock exchange
or NASDAQ are valued at the last reported sales prices on the principal ex-
change on which the securities are traded. Over-the-counter securities and
listed securities for which no sale is reported are valued at the mean between
the last current bid and asked prices. Securities for which market quotations
are not readily available are valued at fair value as determined by management
and approved in good faith by the Board of Trustees.
B. Foreign Currency Translations:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation. Purchases and
sales of portfolio securities and income items denominated in foreign curren-
cies are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customar-
ily enters into foreign exchange contracts to minimize foreign exchange risk
between the trade date and the settlement date of such transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of for-
eign currencies, currency gains or losses realized between the trade and set-
tlement dates on securities transactions, the differences between the amounts
of dividends, interest, and foreign withholding taxes recorded on the Fund's
books, and the U.S. dollar equivalent of the amounts actually received or paid.
Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at the end
of the fiscal period, resulting from changes in the exchange rates.
C. Income Taxes:
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all its
taxable income to its shareholders. Therefore, no provision has been made for
income taxes.
D. Security Transactions, Investment Income, Distributions, and Expenses:
Security transactions are accounted for on trade date. Dividend income is re-
corded on the ex-dividend date. Certain dividend income from foreign securities
is recorded as soon as information is available to the Fund. Interest income
and estimated expenses are accrued daily. Distributions to shareholders, which
are determined in accordance with income tax regulations, are recorded on the
ex-dividend date.
E. Unamortized Organization Costs:
Organization costs are being amortized on a straight line basis over five
years.
11
<PAGE>
Templeton Global Rising Dividends Fund
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
At March 31, 1995, there were an unlimited number of shares of beneficial in-
terest authorized ($.01 par value). Transactions in the Fund's shares were as
follows:
<TABLE>
<CAPTION>
PERIOD FROM
MARCH 14, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
MARCH 31, 1995 MARCH 31, 1994
------------------- ------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- --------
<S> <C> <C> <C> <C>
Shares sold 648,511 $6,506,203 22 $ 220
Shares issued on reinvestment
of distributions 4,504 43,729 -- --
Shares redeemed (70,865) (707,825) -- --
------- ---------- ------- --------
Net increase 582,150 $5,842,107 22 $ 220
======= ========== ======= ========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 100,939 shares as of March 31, 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. TGII voluntarily agreed to limit the total expenses of
the Fund to an annual rate of 1.25% of the Fund's average net assets. The
amount of the reimbursement for the year ended March 31, 1995 is set forth in
the Statement of Operations. For the year ended March 31, 1995, FTD received
net commissions of $22,379 from the sale of the Fund's shares and FTIS received
fees of $5,800.
Pursuant to a distribution plan, the Fund reimburses FTD monthly (subject to a
limit of 0.35% per annum of the Fund's average daily net assets) for FTD's
costs and expenses in connection with any activity that is primarily intended
to result in sales of Fund shares. Such distribution fees are set forth in the
Statement of Operations.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received fees of $23,450 for the year ended March 31,
1995.
12
<PAGE>
Templeton Global Rising Dividends Fund
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the
year ended March 31, 1995 aggregated $3,314,442 and $295,371, respectively. The
cost of securities for income tax purposes is the same as that shown in the
Statement of Assets and Liabilities. Realized gains and losses are reported on
an identified cost basis.
At March 31, 1995, the aggregate gross unrealized appreciation and depreciation
of portfolio securities based on cost for federal income tax purposes, was as
follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 132,093
Unrealized depreciation (283,776)
---------
Net unrealized depreciation $(151,683)
=========
</TABLE>
13
<PAGE>
Templeton Global Rising Dividends Fund
Independent Auditor's Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders
Templeton Global Rising Dividends Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of Templeton Global Rising Dividends Fund as of March
31, 1995, and the related statement of operations for the year then ended, the
statement of changes in net assets and the financial highlights for the year
ended March 31, 1995 and for the period from March 14, 1994 (commencement of
operations) to March 31, 1994. These financial statements and financial high-
lights are the responsibility of the Fund's management. Our responsibility is
to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
March 31, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement pre-
sentation. We believe that our audits provide a reasonable basis for our opin-
ion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Tem-
pleton Global Rising Dividends Fund, as of March 31, 1995, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
April 28, 1995
14
<PAGE>
The Franklin Templeton Group
- --------------------------------------------------------------------------------
Literature Request -- Call today for a free descriptive brochure and prospectus
on any of the funds listed below. The prospectus contains more complete
information, including fees, charges and expenses, and should be read carefully
before investing or sending money.
TEMPLETON Massachusetts*** German Government Bond Fund
FUNDS Michigan*** Global Government Income Fund
Minnesota*** Investment Grade Income Fund
American Trust Missouri U.S. Government Securities Fund
American Government New Jersey
Securities Fund New York* FRANKLIN FUNDS SEEKING HIGH
Developing Markets North Carolina CURRENT INCOME AND STABILITY
Trust Ohio*** OF PRINCIPAL
Foreign Fund Oregon Adjustable Rate Securities
Global Infrastructure Pennsylvania Fund
Fund Tennessee** Adjustable U.S. Government
Global Opportunities Texas Securities Fund
Trust Virginia Short-Intermediate U.S.
Global Rising Dividends Washington** Government Securities Fund
Fund
Greater European Fund FRANKLIN FUNDS FRANKLIN FUNDS FOR NON-U.S.
Growth Fund SEEKING CAPITAL GROWTH INVESTORS
Income Fund California Tax-Advantaged High Yield
Japan Fund DynaTech Fund Securities Fund
Latin America Fund Growth Fund Tax-Advantaged International
Money Fund Equity Fund Bond Fund
Real Estate Securities Global Health Tax-Advantaged U.S.
Fund Care Fund Government Securities Fund
Smaller Companies Gold Fund
Growth Fund Growth Fund FRANKLIN TEMPLETON
World Fund International INTERNATIONAL CURRENCY FUNDS
Equity Fund Global Currency Fund
FRANKLIN FUNDS Pacific Hard Currency Fund
SEEKING TAX- Growth Fund High Income Currency Fund
FREE INCOME Real Estate
Federal Intermediate Securities FRANKLIN MONEY MARKET FUNDS
Term Fund California Tax-Exempt Money
Tax-Free Income Fund Small Cap Fund
Federal Tax-Free Growth Fund Federal Money Fund
Income Fund IFT U.S. Treasury Money
High Yield Tax-Free Market Portfolio
Income Fund FRANKLIN FUNDS SEEKING Money Fund
Insured Tax-Free GROWTH AND INCOME New York Tax-Exempt Money
Income Fund*** Balance Sheet Fund
Puerto Rico Tax-Free Investment Fund Tax-Exempt Money Fund
Income Fund Convertible Securities
Fund FRANKLIN FUND FOR
FRANKLIN STATE-SPECIFIC Equity Income Fund CORPORATIONS
FUNDS SEEKING TAX-FREE Global Utilities Fund Corporate Qualified Dividend
INCOME Income Fund Fund
Alabama Premier Return Fund
Arizona* Rising Dividends Fund FRANKLIN TEMPLETON VARIABLE
Arkansas** Strategic Income Fund ANNUITIES
California* Utilities Fund Franklin Valuemark
Colorado Franklin Templeton Valuemark
Connecticut FRANKLIN FUNDS SEEKING Income
Florida* HIGH CURRENT INCOME Plus (an intermediate
Georgia AGE High Income Fund annuity)
Hawaii**
Indiana
Kentucky
Louisiana
Maryland
Toll-free 1-800/DIAL BEN (1-800/342-5236)
* Two or more fund options available: Long-term portfolio, intermediate-term
portfolio, a portfolio of municipal securities, and a high yield portfolio
(CA).
** The fund may invest up to 100% of its assets in bonds that pay interest
subject to the federal alternative minimum tax.
*** Portfolio of insured municipal securities.
<PAGE>
TEMPLETON GLOBAL RISING
DIVIDENDS FUND
Auditors
McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017-2416
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 the prospectus of Templeton
Global Rising Dividends Fund. 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 bythe presence of a regular beeping tone.
TL14 A95 05/95
[LOGO APPEARS HERE]
TEMPLETON
GLOBAL
RISING
DIVIDENDS
FUND
Annual Report
March 31, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
