<PAGE>
Templeton Americas
Government Securities Fund
- --------------------------------------------------------------------------------
Your Fund's Objective:
The Templeton Americas Government Securities Fund seeks a high level of current
income with total return as a secondary objective. It seeks to achieve these
objectives by investing at least 65% of its total net assets in debt securities
issued or guaranteed by governments, government agencies, political subdivisions
and other government entities of countries located in the Western Hemisphere,
defined as countries located in North, South, or Central America or the
surrounding waters.
- --------------------------------------------------------------------------------
November 16, 1995
Dear Shareholder:
We are pleased to bring you the semi-annual report of the Templeton Americas
Government Securities Fund for the six months ended September 30, 1995. As
described in the Performance Summary on page 4, the Fund provided a total return
of 9.48% for this period.
In the beginning of the year, panic selling by investors in many Latin American
markets, due to the Mexican peso devaluation crisis last December, produced a
plethora of underpriced assets. This allowed us to purchase debt at depressed
prices and further diversify our holdings among the region's countries.
By September 30, 1995, only 6.6% of the Fund's total net assets represented cash
equivalents and other net assets, down from 46.7% at the beginning of this
period. Overall, 55.9% of the total net assets were invested in the U.S., with
44.1% in Latin America. New investments in Chile, Colombia, Ecuador, Guatemala,
Panama, Trinidad and Tobago, and Venezuela may limit the effect on the Fund's
1
<PAGE>
portfolio of a potentially adverse event within any single country. In the
absence of compelling investments issued in local currencies, the Fund held
assets denominated in only U.S. dollars.
Slower U.S. economic growth accompanied by a downtrend in inflation, during the
six months under review, resulted in lower interest rates in many bond markets
worldwide. Short-term U.S. interest rates declined in July when the Federal
Reserve Board eased monetary policy in response to reports of lower inflation.
Long-term rates also declined, aided by the Federal Reserve's policy changes and
the sharp recovery of the dollar against the yen and the mark, which made assets
denominated in U.S. dollars more attractive to foreign investors. Anticipating
that this trend may continue, we added longer maturity bonds to the U.S. and
emerging market portions of the Fund's portfolio in order to benefit from lower
worldwide rates. These bonds may provide greater price appreciation from falling
interest rates than bonds with shorter maturities.
Canadian financial markets were affected by the debate and October referendum
concerning Quebec sovereignty.
- --------------------------------------------------------------------------------
Templeton Americas Government
Securities Fund
Geographic Distribution on 9/30/95
Based on Total Net Assets
United States 49.3%
Mexico 4.1%
Ecuador 2.6%
Argentina 14.0%
Panama 2.0%
Chile 1.8%
[PIE CHART APPEARS HERE] Brazil 11.3%
Colombia 1.9%
Venezuela 3.8%
Guatemala 1.6%
Trinidad and Tobago 1.0%
Short-Term Obligations &
Other Net Assets 6.6%
Uncertainty regarding these political developments caused the Canadian bond
market to lag behind other markets in the region. Believing that volatility
would increase as the referendum drew near, we decided to realize capital gains
by eliminating our positions in Canadian securities.
During the period under review, emerging markets continued their recovery and
approached price levels not seen since before the Mexican peso devaluation.
Argentina, Brazil, and Mexico continued to implement
2
<PAGE>
fiscal and monetary policies aimed at stabilizing their economies and increasing
investor confidence. Although these policies are expected to provide a
foundation for future economic success, change will not come without pain. For
example, Mexico suffers simultaneously from a recession and a projected 50%
inflation rate. Additionally, bad loans continue to pose problems for its banks.
Argentina's economy is also in recession, while Brazil struggles to maintain its
relatively low inflation rate.
Although these countries are experiencing increased social unrest, their leaders
continue to maintain tight fiscal and monetary policies. Investor confidence is
being soothed by positive news such as the current debt buy-back program in
Argentina and improving trade figures in Mexico. In Brazil, the accumulation of
foreign reserves led the government to approve necessary steps ahead of schedule
to fulfill their 1996 Brady bond requirements. Overall, the near-term outlook
for these markets is one of cautious optimism.
We are hopeful about the outlook for fixed-income investment opportunities in
the western hemisphere, and shall continue our search for high-yielding,
undervalued securities in these markets. Of course, investments in foreign
securities concentrated in a single region 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. The Fund will also invest in lower-rated debt
securities and those issued in developing nations./1/
We thank you for your participation in the Templeton Americas Government
Securities Fund, and look forward to serving your investment needs in the months
and years to come.
Sincerely,
/s/ Tom Wilkinson
Tom Wilkinson, CFA
Portfolio Manager
Templeton Americas Government Securities Fund
1. Investing in emerging market countries involves certain considerations not
typically associated with investing in securities of U.S. issuers, including
currency exchange rate fluctuation, political uncertainty and instability,
higher rates of inflation and controls on foreign investment. The Fund has the
flexibility to invest in illiquid securities, and substantially all of the
Fund's assets at any one time may be invested in debt instruments that are
lower-rated or unrated, high risk, and predominantly speculative.
3
<PAGE>
- --------------------------------------------------------------------------------
Performance Summary
The Templeton Americas Government Securities Fund produced a total return of
9.48% for the six-month period ended September 30, 1995. Total return measures
the change in value of an investment, assuming reinvestment of dividend and
capital gains distributions, and does not include sales charges.
The Fund's share price, as measured by net asset value, increased from $9.59 on
March 31, 1995 to $10.23 on September 30, 1995. During the reporting period,
shareholders received distributions totaling 26 cents ($0.26) per share in
dividend income. Of course, past performance is not predictive of future
results, and distributions will vary depending on income earned by the Fund, as
well as any profits realized from the sale of securities in the portfolio.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Templeton Americas Government
Securities Fund
Periods ended September 30, 1995
Since
Inception
One-Year (6/27/94)
<S> <C> <C>
Average Annual
Total Return/1/ 2.65% 2.74%
Cumulative
Total Return/2/ 7.16% 8.02%
</TABLE>
1. Average annual total return represents the average annual change in value of
an investment over the specified periods and includes the maximum 4.25% initial
sales charge.
2. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 4.25% initial sales
charge.
All total return calculations assume reinvestment of dividend and capital gains
distributions when paid. Investment return and principal value will fluctuate
with market conditions, currencies and the economic and political climates of
countries where investments are made. Developing markets involve heightened
risks related to the same factors, in addition to those associated with the
relatively small size and lesser liquidity of these markets. Thus, your shares,
when redeemed, may be worth more or less than their original cost. Past
performance is not predictive of future results.
All total return calculations reflect the deduction of a proportional share of
Fund expenses on an annual basis. The Fund's 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 Americas Government Securities Fund
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE (For a share outstanding throughout the period)
<TABLE>
<CAPTION>
SIX MONTHS JUNE 27, 1994
ENDED (COMMENCEMENT
SEPTEMBER 30, 1995 OF OPERATIONS) TO
(UNAUDITED) MARCH 31, 1995
------------------ -----------------
<S> <C> <C>
Net asset value, beginning of period $ 9.59 $ 10.00
------- -------
Income from investment operations:
Net investment income .38 .30
Net realized and unrealized gain .52 (.43)
------- -------
Total from investment operations .90 (.13)
Distributions to shareholders from net
investment income (.26) (.28)
------- -------
Change in net asset value .64 (.41)
------- -------
Net asset value, end of period $ 10.23 $ 9.59
======= =======
TOTAL RETURN* 9.48% (1.33)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 3,177 $ 2,826
Ratio of expenses to average net assets 6.04%** 6.49%**
Ratio of expenses, net of reimbursement,
to average net assets 1.25%** 1.25%**
Ratio of net investment income to average
net assets 7.71%** 5.07%**
Portfolio turnover rate 111.39% --
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED.
**ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
Templeton Americas Government Securities Fund
Investment Portfolio, September 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY* VALUE
- ------------------------------------------------------------------------------
<C> <C> <S> <C>
BONDS--CORPORATE: 8.0%
- ------------------------------------------------------------------------------
55,000 Industrias Klabin Papel Celulose, 12.125%,
U.S. 12/28/02, 144a $ 55,413
50,000 U.S. Bridas Corp., Yankee, 12.50%, 11/18/99 48,250
60,000 U.S. Banco Ganadero SA, 9.75%, 8/26/99, 144a 61,050
60,000 Compania Sud Americana de Vapores SA,
U.S. 7.375%, 12/08/03 58,500
30,000 U.S. Sei Holdings IX Inc., 11%, 11/30/00, 144a 30,188
----------
TOTAL BONDS--CORPORATE (cost $245,831) 253,401
- ------------------------------------------------------------------------------
BONDS--GOVERNMENT & GOVERNMENT AGENCIES: 85.4%
- ------------------------------------------------------------------------------
50,000 Asociacion Nacional del Cafe, 11.00%,
U.S. 8/31/98 50,500
190,000 U.S. Bocon Previsionales IV, 4.50%, FRN, 9/01/02 116,742
Government of Brazil:
161,500 U.S. 6.6875%, FRN A, 1/01/01 136,972
250,000 U.S. 7.25%, EI, FRN, L, 4/15/06 166,250
Republic of Argentina:
125,000 U.S. 10.95%, 11/01/99 124,375
250,000 U.S. 6.8125%, FRN, 3/31/05 155,000
250,000 U.S. Republic of Ecuador, 7.25%, FRN, 2/27/15 81,563
80,000 U.S. Republic of Panama, 7.125%, FRN, 5/10/02 64,600
120,000 U.S. Republic of Venezuela, 9.00%, 5/27/96 119,700
U.S. Treasury Note:
560,000 U.S. 6.50% 05/15/05 572,863
25,000 U.S. 6.50%, 8/15/97 25,281
810,000 U.S. 7.50%, 11/15/01 867,461
100,000 U.S. 8.625%, 10/15/95 100,078
150,000 U.S. United Mexican States, 8.50%, 9/15/02 130,125
----------
TOTAL BONDS--GOVERNMENT & GOVERNMENT AGENCIES (cost $2,714,393) 2,711,510
- ------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 2.2% (cost $69,797)
- ------------------------------------------------------------------------------
70,000 U.S. Treasury Bills, 5.08% to 5.27% with
U.S. maturities to 11/9/95 69,815
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS: 95.6% (cost $3,030,021) 3,034,726
OTHER ASSETS, LESS LIABILITIES: 4.4% 142,035
----------
TOTAL NET ASSETS: 100.0% $3,176,761
==========
</TABLE>
* CURRENCY OF COUNTRIES INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
Templeton Americas Government Securities Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (unaudited)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value
(identified cost $3,030,021) $3,034,726
Cash 27,718
Receivables:
Interest 90,680
Fund shares sold 177
Expense reimbursement 23,463
Unamortized organization costs 43,450
----------
Total assets 3,220,214
----------
Liabilities:
Payable for fund shares redeemed 27,374
Accrued expenses 16,079
----------
Total liabilities 43,453
----------
Net assets, at value $3,176,761
==========
Net assets consist of:
Undistributed net investment income $ 38,298
Net unrealized appreciation 4,705
Accumulated net realized gain 33,809
Net capital paid in on shares of beneficial interest 3,099,949
----------
Net assets, at value $3,176,761
==========
Shares outstanding 310,503
==========
Net asset value per share
($3,176,761 / 310,503) $ 10.23
==========
Maximum offering price
($10.23 / 95.75%) $ 10.68
==========
</TABLE>
STATEMENT OF OPERATIONS
for the six months ended
September 30, 1995 (unaudited)
<TABLE>
<S> <C> <C>
Interest income $136,851
Expenses:
Management fees (Note 3) $ 9,143
Administrative fees (Note 3) 2,293
Distribution fees (Note 3) 4,106
Transfer agent fees (Note 3) 650
Custodian fees 800
Reports to shareholders 21,000
Audit fees 7,500
Legal fees (Note 3) 5,500
Registration and filing fees 21,950
Trustees' fees and expenses 500
Amortization of organization costs 14,752
Other 4,126
--------
Total expenses 92,320
Less expenses reimbursed (Note 3) (73,232)
--------
Total expenses less reimbursement 19,088
--------
Net investment income 117,763
Realized and unrealized gain:
Net realized gain (loss) on:
Investments 49,541
Foreign currency transactions (4,302)
--------
45,239
--------
Net unrealized appreciation on:
Investments 107,883
Foreign currency translation of other assets and
liabilities 842
--------
108,725
--------
Net realized and unrealized gain 153,964
--------
Net increase in net assets resulting from operations $271,727
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Templeton Americas Government Securities Fund
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS JUNE 27, 1994
ENDED (COMMENCEMENT OF
SEPTEMBER 30, 1995 OPERATIONS) TO
(UNAUDITED) MARCH 31, 1995
------------------ ----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 117,763 $ 59,420
Net realized gain (loss) on investment
and foreign currency transactions 45,239 (18,703)
Net unrealized appreciation
(depreciation) 108,725 (104,020)
---------- ----------
Net increase (decrease) in net assets
resulting from operations 271,727 (63,303)
Distributions to shareholders from net
investment income (79,465) (52,147)
Fund share transactions (Note 2) 158,438 2,941,511
---------- ----------
Net increase in net assets 350,700 2,826,061
Net assets:
Beginning of period 2,826,061 --
---------- ----------
End of period $3,176,761 $2,826,061
========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Templeton Americas Government Securities Fund
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Americas Government Securities Fund (the Fund) is a separate series
of Templeton Global Investment Trust (the Trust) which is an open-end, non-di-
versified management investment company registered under the Investment Company
Act of 1940. The Fund commenced operations on June 27, 1994. The following sum-
marizes the Fund's significant accounting policies.
a. Securities Valuations:
Securities listed or traded on a recognized national or foreign stock exchange
or NASDAQ are valued at the last reported sales prices on the principal ex-
change on which the securities are traded. Over-the-counter securities and
listed securities for which no sale is reported are valued at the mean between
the last current bid and asked prices. Securities for which market quotations
are not readily available are valued at fair value as determined by management
and approved in good faith by the Board of Trustees.
b. Foreign Currency Transactions:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the rate of exchange of
such currencies against U.S. dollars on the date of valuation. Purchases and
sales of portfolio securities and income items denominated in foreign curren-
cies are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customar-
ily enters into foreign exchange contracts to minimize foreign exchange risk
between the trade date and the settlement date of such transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of for-
eign currencies, currency gains or losses realized between the trade and set-
tlement dates on securities transactions, the differences between the amounts
of dividends, interest, and foreign withholding taxes recorded on the Fund's
books, and the U.S. dollar equivalent of the amounts actually received or paid.
Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at the end
of the fiscal period, resulting from changes in the exchange rates.
c. Income Taxes:
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all its
taxable income to its shareholders. Therefore, no provision has been made for
income taxes.
d. 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.
9
<PAGE>
Templeton Americas Government Securities Fund
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
At September 30, 1995, there were an unlimited number of shares of beneficial
interest authorized ($.01 par value). Transactions in the Fund's shares were as
follows:
<TABLE>
<CAPTION>
PERIOD FROM JUNE 27, 1994
(COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS) TO
SEPTEMBER 30, 1995 MARCH 31, 1995
-------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ---------- ------------ --------------
<S> <C> <C> <C> <C>
Shares sold 24,697 $ 247,890 334,587 $ 3,166,002
Shares issued on
reinvestment
of distributions 7,689 76,614 5,210 50,581
Shares redeemed (16,618) (166,066) (45,062) (275,072)
-------- ---------- ----------- --------------
Net increase 15,768 $ 158,438 294,735 $ 2,941,511
======== ========== =========== ==============
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 262,010 shares as of September 30, 1995.
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton In-
vestment Counsel, Inc. (TICI), Templeton Global Investors, Inc. (TGII), Frank-
lin Templeton Distributors, Inc. (FTD), and Franklin Templeton Investor Servic-
es, Inc. (FTIS), the Fund's investment manager, administrative manager, princi-
pal underwriter, and transfer agent, respectively.
The Fund pays monthly an investment management fee to TICI equal, on an annual
basis, to 0.60% of the average daily net assets of the Fund. 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. TICI and TGII have voluntarily
agreed to reduce their respective fees to the extent necessary to limit total
expenses to an annual rate of 1.25% of average net assets through December 31,
1995. The amount of the reimbursement for the period ended September 30, 1995
is set forth in the Statement of Operations. For the period ended September 30,
1995, FTD received net commissions of $393 from the sale of the Fund's shares
and FTIS received fees of $650.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received $5,500 for the six months ended September 30,
1995.
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 cost
and expenses in connection with any activity that is primarily intended to re-
sult in a sale of Fund shares. Such distribution fees are set forth in the
Statement of Operations.
10
<PAGE>
Templeton Americas Government Securities Fund
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the six
months ended September 30, 1995 aggregated $3,788,739 and $2,696,602, respec-
tively. The cost of securities for federal income tax purposes is the same as
that shown in the investment portfolio. 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 $ 29,369
Unrealized depreciation (24,664)
--------
Net unrealized appreciation $ 4,705
========
</TABLE>
11
<PAGE>
- --------------------------
TEMPLETON AMERICAS
GOVERNMENT
SECURITIES 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
Americas Government
Securities 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.
- --------------------------
[RECYCLING LOGO APPEARS HERE]
TL416 S95 11/95
TEMPLETON
AMERICAS
GOVERNMENT
SECURITIES
FUND
Semi-Annual Report
September 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
