<PAGE>
Templeton Global
Infrastructure Fund
Your Fund's Objective:
The Templeton Global Infrastructure Fund seeks long-term capital growth by
investing primarily in securities of domestic and foreign companies that are
principally engaged in or related to the development, operation or
rehabilitation of the physical and social infrastructures of various nations
throughout the world.
May 15, 1996
Dear Shareholder:
We are pleased to bring you the second annual report of the Templeton Global
Infrastructure Fund, which covers the period ended March 31, 1996. The twelve
months under review were characterized by moderate growth, low inflation, and
falling interest rates. Within this environment, the Fund's Class I shares
produced a total return of 11.79%, as shown in the Performance Summary on page
5.
In the U.S., individual and institutional investors rushed to purchase U.S.
equity securities, as strong corporate profits, and large inflows of capital
into mutual funds, drove stock prices higher. News of all-time market highs
appeared nearly every week, further extending the rally. Although some
technology stocks began a steep decline in September 1995, most U.S. stock
indices ended the reporting period near their highest levels.
European markets experienced economic conditions similar to those in the U.S.,
but their relatively strong currencies eroded the competitive manufacturing
position of
1
<PAGE>
Germany and the export capabilities of Sweden and Finland. Although this had a
negative effect on earnings and stock prices when measured in local currencies,
many large stocks on these exchanges produced positive returns when measured in
U.S. dollars.
In the world's emerging markets, investors reacted to Mexico's fiscal woes by
selling stocks in many other Latin American and Asian markets. Between January
and March 1996, however, stability and investor confidence had returned to many
of these countries, and many of these stocks experienced broad gains.
On March 31, 1996, two of the Fund's largest investment sectors were
telecommunications (21.4% of total net assets) and utilities (12.3%). In the
U.S., we maintained our holdings in MCI and LCI International, both long-
distance phone companies. In our opinion, they may benefit from provisions of
the recently passed Telecommunications Act of 1996 that is designed to clear
away barriers previously preventing long-distance carriers from providing local
telephone service. The stock of Texas Utilities Electric Co., our only U.S.
utility holding as of March 31, 1996, performed well primarily because of the
company's planned use of its robust cash flow to reduce debt and repurchase some
of its shares.
- -------------------------------------------------------------------------------
Templeton Global
Infrastructure Fund
Geographic Distribution on 3/31/96
Based on Total Net Assets
[PIE GRAPH OF GEOGRAPHIC DISTRIBUTION OF INVESTMENTS ON 3/31/96
APPEARS HERE]
In Europe, the Fund benefited from the performance of our stock in the Dutch
company Koninklijke PTT, and Telefonica de Espana, both of which are part of
Unisource, a global alliance providing telecommunications services to
corporations. We added SPT Telecom, the Czech Republic's national telephone
company to our portfolio, and increased our stake in CEZ, a Czech
electric utility. We believe these companies offer potential for appreciation
because the Czech Republic has one of the highest education rates in Eastern
Europe and has taken many steps to reform its economy.
2
<PAGE>
Taking advantage of weakness in some emerging markets, we established new
positions and added to several of our existing holdings during the reporting
period. For example, we purchased additional shares of Chengdu
Telecommunications, one of China's largest providers of fiber and copper cable,
and initiated a new position in Guangdong Electric, which controls a number of
power plants in China's rapidly growing Guangdong province. We also added
Pohang Iron & Steel, a South Korean integrated steelmaker, and PT Inti Indorayon
Utama, an Indonesian pulp and rayon producer, to our portfolio, and increased
our position in Telecomunicacoes Brasileiras, Brazil's dominant phone company.
Looking forward, we are optimistic about the potential for global investing and
will continue to search for undervalued companies contributing to the world's
growth through infrastructure development. In our opinion, developing markets,
which performed poorly relative to U.S. and European markets during the past two
years, may begin to outperform these markets. Although it will be difficult for
the U.S. market to repeat last year's performance, many telephone service
providers will require a great deal of investment to upgrade their systems as
the telecommunications market is deregulated, and we
- ----------------------------------------------------------
Templeton Global
Infrastructure Fund
Top 10 Holdings on 3/31/96
Based on Total Net Assets
% of Total
Company, Industry, Country Net Assets
- ----------------------------------------------------------
Newbridge Networks Corp.
Data Processing & Reproduction, Canada 2.3%
- ----------------------------------------------------------
Svedala Industri, A
Building Materials & Components, Sweden 2.2%
- ----------------------------------------------------------
Motorola Inc.
Electrical & Electronics, United States 2.1%
- ----------------------------------------------------------
Millicom International Cellular SA
Telecommunications, Luxembourg 2.1%
- ----------------------------------------------------------
Shaw Group Inc.
Industrial Components, United States 2.0%
- ----------------------------------------------------------
Hub Power Co. Ltd., GDR, 144A
Energy Sources, Pakistan 1.9%
- ----------------------------------------------------------
Cia de Inversiones en
Telecomunicaciones SA, 7.00%, 3/3/98;
Telecommunications, Argentina 1.9%
- ----------------------------------------------------------
Shandong Huaneng Power
Utilities - Electrical & Gas, China 1.9%
- ----------------------------------------------------------
BBC Brown Boveri Ltd., br.
Electrical & Electronics, Switzerland 1.8%
- ----------------------------------------------------------
Tele Danmark AS, ADS
Telecommunications, Denmark 1.8%
- ----------------------------------------------------------
For a complete list of portfolio holdings, please see page 9 of this report.
intend to focus on identifying companies that could benefit from such
anticipated capital expenditures. This discussion reflects the strategies we
employed for the Fund during the past fiscal year, and includes our opinions as
of the close of the period. Since economic and market conditions are constantly
changing, our
3
<PAGE>
strategies, and our evaluations, conclusions and decisions regarding portfolio
holdings, may change as new circumstances arise. Although past performance of a
specific investment or sector cannot guarantee future performance, such
information can be useful in analyzing securities we purchase or sell for the
Fund.
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. Because the Fund focuses on infrastructure-
related industries, its return may be more volatile than that of a more broadly
diversified investment. These special considerations are discussed in the
prospectus. While short-term price volatility can be disconcerting, declines of
as much as 40% to 50% are not unusual in emerging markets. For example, the Hong
Kong market has increased 700% in the last 15 years, but has suffered six
declines of more than 20% during that time./1/
Thank you for your continued support of the Templeton Global Infrastructure
Fund. We appreciate your support, welcome your comments, and look forward to
serving you in the future.
Sincerely,
/s/ Mark Holowesko
Mark Holowesko, CFA
President
Templeton Global Investment Trust
/s/ Gary R. Clemons
Gary R. Clemons
Portfolio Manager
Templeton Global Infrastructure Fund
1. Source: Bloomberg. Based on quarterly percentage change over 15 years ended
March 31, 1996.
Under section 854(b)(2) of the Internal Revenue Code, the Templeton Global
Infrastructure Fund hereby designates 4.85% of its ordinary income dividends
paid by the Fund during the fiscal year ended March 31, 1996, as income
qualifying for the corporate dividends received deduction.
4
<PAGE>
Performance Summary
Class I
The Templeton Global Infrastructure Fund Class I shares reported a total return
of 11.79% for the one-year period ended March 31, 1996. Total return measures
the change in value of an investment, assuming reinvestment of dividends, and
capital gains distributions, and does not include the initial sales charge.
While we expect market volatility in the short term, we maintain a long-term
perspective in managing the Fund, and we encourage shareholders to view their
investments in a similar manner.
The price of the Fund's Class I shares, as measured by net asset value,
increased from $9.43 on March 31, 1995 to $10.04 on March 31, 1996. During this
time, shareholders received distributions of 5.0 cents ($0.05) per share in
income dividends and 41.5 cents ($0.415) in short-term capital gains. 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.
The graph to the right compares the performance of the Templeton Global
Infrastructure Fund with the unmanaged Morgan Stanley Capital International
(MSCI) World Index, which tracks 22 equity markets worldwide, and the Goldman
Sachs Extended Global Market Index (GS-EGMI), which is a combination of the
Financial Times of London - Actuaries World Index and the International Finance
Corporation Investable Composite Index, and which tracks equity securities in
markets around the world. Please remember that the Fund's performance differs
from that of either index because the indices do 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 INFRASTRUCTURE FUND
CLASS I
Total Return Index Comparison
$10,000 Investment (3/14/94-3/31/96)
[GRAPH APPEARS HERE SHOWING COMPARISON BETWEEN TEMPLETON GLOBAL INFRASTRUCTURE
CLASS I, MSCI WORLD INDEX AND THE GS-EGMI WORLD INDEX]
<TABLE>
<CAPTION>
3/94 3/96
<S> <C> <C>
Templeton Global Infrastructure Fund-Class 1 $10,000 $ 9,976
MSCI World Index $10,000 $12,937
GS-EGMI World Index $10,000 $12,705
</TABLE>
1. Includes all sales charges and represents the change in value of an
investment over the indicated period, assuming reinvestment of dividends and
capital gains. Past performance is not predictive of future results.
2. Index is unmanaged and includes reinvested dividends.
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL INFRASTRUCTURE FUND
CLASS I
Periods Ended 3/31/96
<TABLE>
<CAPTION>
Since
Inception
One-Year (3/14/94)
<S> <C> <C>
Average Annual
Total Return/1/ 5.31% -0.12%
Cumulative
Total Return/2/ 11.79% 5.85%
</TABLE>
1. Average annual total return represents the average annual change in value of
an investment over the indicated periods, and includes the maximum 5.75% initial
sales charge.
2. Cumulative total return represents the change in value of an investment over
the specified periods. It does not include the maximum 5.75% initial sales
charge.
All total returns 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 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 initial cost. Past performance is not predictive
of future results.
From March 14, 1994 through April 15, 1995, expense reductions by the Fund's
manager increased the Fund's total returns.
5
<PAGE>
Performance Summary
Class II
The Templeton Global Infrastructure Fund Class II shares reported a cumulative
total return of 7.66% for the period which began at inception on May 1, 1995 and
ended March 31, 1996. Total return measures the change in value of an
investment, assuming reinvestment of dividends and capital gains distributions,
and does not include sales charges. While we expect market volatility in the
short term, we maintain a long-term perspective in managing the Fund, and we
encourage shareholders to view their investments in a similar manner.
The price of the Fund's Class II shares, as measured by net asset value,
increased from $9.73 on May 1, 1995 to $9.99 on March 31, 1996. During this
time, shareholders received distributions of 3.58 cents ($0.0358) per share in
income dividends and 41.5 cents ($0.415) in short-term capital gains. 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.
The graph to the right compares the performance of the Templeton Global
Infrastructure Fund with the unmanaged Morgan Stanley Capital International
(MSCI) World Index, which tracks 22 equity markets worldwide, and the Goldman
Sachs Extended Global Market Index (GS-EGMI), which is a combination of the
Financial Times of London - Actuaries World Index and the International Finance
Corporation Investable Composite Index, and which tracks equity securities in
markets around the world. Please remember that the Fund's performance differs
from that of either index because the indices do 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 INFRASTRUCTURE FUND
CLASS II
Total Return Index Comparison
$10,000 Investment (5/1/95-3/31/96)
[GRAPH APPEARS HERE SHOWING COMPARISON BETWEEN TEMPLETON GLOBAL INFRASTRUCTURE -
CLASS II, MSCI WORLD INDEX AND THE GS-EGMI WORLD INDEX]
<TABLE>
<CAPTION>
<S> <C> <C>
Templeton Global Infrastructure Fund Class II $10,000 $10,558
MSCI World Index $10,000 $11,650
GS-EGMI World Index $10,000 $11,526
</TABLE>
1. Includes all sales charges and represents the change in value of an
investment over the indicated period, assuming reinvestment of dividends and
capital gains. Past performance is not predictive of future results.
2. Index is unmanaged and includes reinvested dividends.
TEMPLETON GLOBAL INFRASTRUCTURE FUND
CLASS II
Period Ended 3/31/96
<TABLE>
<CAPTION>
Since
Inception
(5/01/95)
<S> <C>
Aggregate Total Return/1/ 5.58%
Cumulative Total Return/2/ 7.66%
</TABLE>
1. Figures represent aggregate total returns, which include the 1.00% initial
sales charge and represent the change in value of an investment since the
inception date of these shares. It also includes the 1.00% contingent deferred
sales charge (CDSC), applicable to shares redeemed within 18 months of purchase.
Since Class II shares have existed for less than one year, average annual total
returns are not provided.
2. Cumulative total return measures the change in value of an investment over
the period indicated and does not include 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.
All total returns 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 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 initial cost. Past performance is not predictive
of future results.
6
<PAGE>
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Highlights
- --------------------------------------------------------------------------------
Per share operating performance--Class I
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
March 14, 1994
Year ended March 31 (commencement
-------------------- of operations) to
1996 1995 March 31, 1994
--------- --------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of pe-
riod $ 9.43 $ 10.01 $10.00
--------- --------- ------
Income from investment operations:
Net investment income .04 .07 .009
Net realized and unrealized gain
(loss) 1.03 (.61) .001
--------- --------- ------
Total from investment operations 1.07 (.54) .01
--------- --------- ------
Distributions:
Dividends from net investment in-
come (.05) (.04) --
Distributions from net realized
gains (.41) -- --
--------- --------- ------
Total distributions (.46) (.04) --
--------- --------- ------
Change in net asset value .61 (.58) .01
--------- --------- ------
Net asset value, end of period $ 10.04 $ 9.43 $10.01
========= ========= ======
Total Return* 11.79% (5.41)% .10%
Ratios/supplemental data
Net assets, end of period (000) $21,590 $18,717 $ 101
Ratio of expenses to average net
assets 2.37% 3.25% 32.02%**
Ratio of expenses, net of reim-
bursement, to average net assets 2.32% 1.25% 1.25%**
Ratio of net investment income to
average net assets .40% 1.38% 1.89%**
Portfolio turnover rate 38.22% 3.21% --
Average commission rate paid (per
share) $ .0083
</TABLE>
*Total return does not reflect sales commissions. Not annualized for periods
of less than one year.
**Annualized.
7
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
Per share operating performance--Class II
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
For the period
May 1, 1995+
through
March 31, 1996
--------------
<S> <C>
Net asset value, beginning of period $ 9.73
------
Income from investment operations:
Net investment loss (.02)
Net realized and unrealized gain .73
------
Total from investment operations .71
------
Distributions:
Dividends from net investment income (.04)
Distributions from net realized gains (.41)
------
Total distributions (.45)
------
Change in net asset value .26
------
Net asset value, end of period $ 9.99
======
Total Return* 7.66%
Ratios/supplemental data
Net assets, end of period (000) $1,379
Ratio of expenses to average net assets 2.97%**
Ratio of net investment loss to average net assets (.88)%**
Portfolio turnover rate 38.22%
Average commission rate paid (per share) $.0083
</TABLE>
*Total return does not reflect sales commissions or the contingent deferred
sales charge. Not annualized for periods of less than one year.
**Annualized.
+Commencement of sales.
See Notes to Financial Statements.
8
- --------------------------------------------------------------------------------
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS: 88.5%
- ------------------------------------------------------------------------------
Appliances & Household Durables: 0.6%
Hualing Holdings Ltd. H.K. 1,024,000 $ 139,022
- ------------------------------------------------------------------------------
Automobiles: 0.1%
*Weifu Fuel Injection Co. Ltd. Chn. 41,800 14,133
- ------------------------------------------------------------------------------
Building Materials & Components: 7.7%
Acme Landis Holdings Ltd. H.K. 1,200,000 93,095
Anglian Group PLC U.K. 40,000 82,420
*Cementos Paz del Rio SA, ADR, 144A Col. 11,600 146,450
*Chakwal Cement Co. Ltd., GDR Pkr. 16,250 101,563
*Corcemar Corp. Arg. 46,370 185,480
Masco Corp. U.S. 3,000 87,000
*Owens Corning U.S. 3,900 156,488
Parbury Ltd. Aus. 803,000 313,753
Svedala Industri, A Swe. 15,750 514,035
*Unione Cementi Marchino Emiliane
(Unicem), di Risp Itl. 31,000 89,171
-----------
1,769,455
- ------------------------------------------------------------------------------
Business & Public Services: 1.5%
Wheelabrator Technologies Inc. U.S. 21,200 352,450
- ------------------------------------------------------------------------------
Chemicals: 0.4%
European Vinyls Corp. EVC
International NV Neth. 2,865 99,714
- ------------------------------------------------------------------------------
Construction & Housing: 3.5%
Dragados y Construcciones SA Sp. 18,900 256,630
European Techniki Gr. 25,500 140,825
Kaufman & Broad Home Corp. U.S. 13,400 214,400
Sociedade Construcoes Soares da
Costa SA Port. 14,200 113,578
*U.S. Home Corp. U.S. 3,400 87,550
-----------
812,983
- ------------------------------------------------------------------------------
Data Processing & Reproduction: 3.7%
*3com Corp. U.S. 8,000 319,000
*Newbridge Networks Corp. Can. 9,300 523,125
-----------
842,125
- ------------------------------------------------------------------------------
Electrical & Electronics: 12.3%
Alcatel Alsthom SA Fr. 4,100 380,008
Allen Group Inc U.S. 9,300 180,188
*Antec Corp. U.S. 8,750 135,625
BBC Brown Boveri Ltd., br. Swtz. 348 423,388
Dongfang Electrical Machinery Co.
Ltd., H Chn. 1,208,000 335,816
*DSC Communications Corp. U.S. 8,050 217,350
</TABLE>
9
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, March 31, 1996 (cont.)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Electrical & Electronics (cont.)
*Elcotel Inc. U.S. 20,000 $ 105,000
Gold Peak Industries (Holdings) Ltd. H.K. 352,000 186,605
Motorola Inc. U.S. 9,200 487,600
*Optical Data Systems Inc. U.S. 15,700 321,850
Stanilite Pacific Aus. 364,337 62,637
-----------
2,836,067
- -------------------------------------------------------------------------------
Electronic Components & Instruments: 2.5%
Allgon AB, B Swe. 10,100 151,209
BICC U.K. 44,300 226,510
Draka Holding NV Neth. 7,000 203,378
-----------
581,097
- -------------------------------------------------------------------------------
Energy Sources: 1.9%
*Hub Power Co. Ltd., GDR, 144A Pkr. 22,500 444,375
- -------------------------------------------------------------------------------
Forest Products & Paper: 3.3%
Munksjo AB Swe. 32,344 227,587
PT Inti Indorayon Utama, fgn. Indo. 235,000 243,745
Weyerhaeuser Co. U.S. 6,000 276,750
-----------
748,082
- -------------------------------------------------------------------------------
Industrial Components: 4.0%
BW/IP Inc. U.S. 16,900 302,088
Madeco Manufacturera de Cobre SA,
ADR Chil. 6,200 155,000
*Shaw Group Inc. U.S. 26,000 451,750
-----------
908,838
- -------------------------------------------------------------------------------
Machinery & Engineering: 3.7%
SNC-Lavalin Group Inc., A Can. 10,600 235,244
*Tampella AB OY Fin. 179,100 276,338
VA Technologie AG, br., 144A Aust. 2,680 330,523
-----------
842,105
- -------------------------------------------------------------------------------
Metals & Mining: 2.0%
Kang Won Industrial Co. Ltd. Kor. 11,000 165,932
Maanshan Iron & Steel Co. Ltd., H Chn. 60,000 9,465
Pohang Iron & Steel Co. Ltd. Kor. 3,400 285,370
-----------
460,767
- -------------------------------------------------------------------------------
Multi-Industry: 1.8%
Metra OY, B Fin. 10,300 405,639
- -------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, March 31, 1996 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Real Estate: 3.8%
*Filinvest Land Inc. Phil. 500,000 $ 233,957
*MDX Public Co. Ltd., fgn. Thai. 127,000 206,234
New World Development Co. Ltd. H.K. 44,000 204,810
Taylor Woodrow PLC U.K. 97,300 227,218
-----------
872,219
- -------------------------------------------------------------------------------
Telecommunications: 21.4%
Alcatel Cable SA Fr. 4,100 368,776
*Bay Networks Inc. U.S. 11,500 353,625
BC Telecom Inc. Can. 6,500 121,006
BCE Inc. Can. 5,900 208,713
Chengdu Telecommunications Cable Co.
Ltd., H Chn. 1,075,000 230,734
Koninklijke PTT Nederland Neth. 8,600 338,357
*LCI International U.S. 9,600 235,200
MCI Communications Corp. U.S. 10,000 302,500
*Millicom International Cellular SA Lux. 11,100 480,075
*Orient Telecom & Technology
Holdings Ltd. H.K. 320,000 103,439
*Pakistan Telecommunications Corp. Pkr. 1,890 185,220
Philippine Long Distance Telephone
Co., ADR Phil. 4,400 234,300
PT Indosat, ADR Indo. 4,850 165,506
*SPT Telecom AS Csk. 2,250 258,083
STET (Sta Finanziaria Telefonica
Torino) SPA, di Risp Itl. 48,000 96,129
Telecom Italia Spa Itl. 60,000 94,866
Telecom Italia Spa, di Risp Itl. 61,000 85,515
Tele Danmark AS Den. 11,660 301,703
Tele Danmark AS, B Den. 2,290 119,321
Telefonica de Espana SA Sp. 20,900 331,786
Telefonica de Peru, B Per. 115,000 237,139
Telefonos de Mexico SA, L, ADR Mex. 2,010 66,079
-----------
4,918,072
- -------------------------------------------------------------------------------
Transportation: 2.0%
IMC Holdings Ltd. H.K. 140,000 81,458
Qantas Airways Ltd., ADR, 144A Aus. 19,300 344,988
Shanghai Hai Xing Shipping Co., H Chn. 350,000 27,153
-----------
453,599
- -------------------------------------------------------------------------------
Utilities-Electrical & Gas: 12.3%
Australian Gas & Light Company Aus. 70,600 297,921
Central Costanera SA, ADR, 144A Arg. 9,850 285,650
*CEZ Csk. 9,600 362,338
Compania Boliviana de Energia
Electricas SA Bol. 5,300 194,775
</TABLE>
11
<PAGE>
Templeton Global Infrastructure Fund
Investment Portfolio, March 31, 1996 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<S> <C> <C> <C>
- --------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- --------------------------------------------------------------------------------
Utilities-Electrical & Gas (cont.)
*Guangdong Electric Power
Development Co. Ltd.,
B, 144A Chn. 485,000 269,653
Iberdrola SA Sp. 39,600 365,381
National Power PLC U.K. 38,400 273,708
Powergen PLC U.K. 1,700 13,856
Shandong Huaneng Power Chn. 49,400 432,250
Texas Utilities Electric Co. U.S. 8,000 331,000
-----------
2,826,532
-----------
TOTAL COMMON STOCKS (cost $20,598,058) 20,327,274
- --------------------------------------------------------------------------------
PREFERRED STOCKS: 6.1%
- --------------------------------------------------------------------------------
Ballast Nedam NV, ctf.,
conv., pfd. Neth. 3,400 146,529
Cia de Inversiones en
Telecomunicaciones SA,
7.00%, conv., 3/03/98, pfd. Arg. 8,300 437,825
Concessioni e Costruzioni
Autostrade SPA, B, pfd. Itl. 180,000 197,233
Nokia AB, pfd. Fin. 9,450 330,155
Telebras-Telecomunicacoes
Brasileiras SA, ADR, pfd. Braz. 5,705 283,824
-----------
TOTAL PREFERRED STOCKS (cost $1,372,069) 1,395,566
- --------------------------------------------------------------------------------
PRINCIPAL IN
LOCAL CURRENCY**
- --------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 7.2%
(cost $1,649,868)
- --------------------------------------------------------------------------------
U.S. Treasury Bills, 4.53%
to 5.08% with maturities
to 6/06/96 U.S. 1,659,00 1,649,682
- --------------------------------------- ----------------------------------------
TOTAL INVESTMENTS: 101.8%
(cost $23,619,995) 23,372,522
OTHER ASSETS, LESS LIABILITIES: (1.8)% (402,811)
------------
TOTAL NET ASSETS: 100.0% $22,969,711
============
</TABLE>
*NON-INCOME PRODUCING.
**CURRENCY OF COUNTRY INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Templeton Global Infrastructure Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
<TABLE>
<S> <C>
Assets:
Investments in securities, at value
(identified cost $23,619,995) $23,372,522
Cash 66
Receivables:
Investment securities sold 286,456
Fund shares sold 147,559
Dividends 64,645
Unamortized organization costs 45,000
-----------
Total assets 23,916,248
-----------
Liabilities:
Payables:
Investment securities purchased 808,609
Fund shares redeemed 21,502
Accrued expenses 116,426
-----------
Total liabilities 946,537
-----------
Net assets, at value $22,969,711
===========
Net assets consist of:
Undistributed net investment income $ 22,609
Net unrealized depreciation (247,473)
Accumulated net realized gain 110,477
Net capital paid in on shares of beneficial interest 23,084,098
-----------
Net assets, at value $22,969,711
===========
Class I
Net asset value per share
($21,590,227 / 2,150,454
shares outstanding) $ 10.04
===========
Maximum offering price
($10.04 / 94.25%) $ 10.65
===========
Class II
Net asset value per share
($1,379,484 / 138,034
shares outstanding) $ 9.99
===========
Maximum offering price
($9.99 / 99.00%) $ 10.09
===========
</TABLE>
STATEMENT OF OPERATIONS
for the year ended March 31, 1996
<TABLE>
<S> <C> <C>
Investment income:
(net of $49,053
foreign taxes withheld)
Dividends $ 462,012
Interest 109,170
----------
Total income $ 571,182
Expenses:
Management fees (Note 3) 158,648
Administrative fees (Note 3) 31,729
Distribution fees (Note 3)
Class I 72,033
Class II 6,461
Transfer agent fees (Note 3) 62,500
Custodian fees 7,000
Reports to shareholders 90,100
Audit fees 27,750
Legal fees (Note 3) 20,000
Registration and filing fees 11,000
Amortization of
organization costs 14,142
Other 3,181
----------
Total expenses 504,544
Less expenses reimbursed
(Note 3) (9,935)
----------
Total expenses
less reimbursement 494,609
----------
Net investment income 76,573
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 1,021,550
Foreign currency transactions (16,964)
----------
1,004,586
Net unrealized appreciation
on investments 1,135,543
----------
Net realized and
unrealized gain 2,140,129
----------
Net increase in net assets resulting from operations $2,216,702
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
Templeton Global Infrastructure Fund
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
for the years ended March 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
----------- -----------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 76,573 $ 138,777
Net realized gain (loss) on investment and for-
eign currency transactions 1,004,586 (72,292)
Net unrealized appreciation (depreciation) 1,135,543 (1,383,044)
----------- -----------
Net increase (decrease) in net assets resulting
from operations 2,216,702 (1,316,559)
Distributions to shareholders:
From net investment income
Class I (98,398) (67,351)
Class II (1,342) --
From net realized gain
Class I (809,303) --
Class II (38,252) --
Fund share transactions (Note 2)
Class I 1,578,477 19,999,597
Class II 1,405,300 --
----------- -----------
Net increase in net assets 4,253,184 18,615,687
Net assets:
Beginning of year 18,716,527 100,840
----------- -----------
End of year $22,969,711 $18,716,527
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
Templeton Global Infrastructure Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Global Infrastructure Fund (the Fund) is a separate series of Temple-
ton Global Investment Trust (the Trust), a Delaware business trust, which is an
open-end diversified management investment company registered under the Invest-
ment Company Act of 1940. The Fund seeks long-term capital growth by investing
primarily in securities of domestic and foreign companies that are principally
engaged in or related to the development, operation or rehabilitation of the
physical and social infrastructures of various nations throughout the world.
The following summarizes the Fund's significant accounting policies.
a. Securities Valuations:
Securities listed or traded on a recognized national or foreign exchange or
NASDAQ are valued at the last reported sales prices on the principal exchange
on which the securities are traded. Over-the-counter securities and listed se-
curities 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 ap-
proved 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 a foreign exchange contract 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 of 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 on foreign securi-
ties is recorded as soon as information is available to the Fund. Interest in-
come 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.
f. Accounting Estimates:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
15
<PAGE>
Templeton Global Infrastructure Fund
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Effective May 1, 1995, the Fund offered two classes of shares: Class I shares
and Class II shares. Shares of each class are identical except for their ini-
tial sales load, a contingent deferred sales charge on Class II shares, distri-
bution fees, and voting rights on matters affecting a single class. All Fund
shares outstanding before May 1, 1995 were designated as Class I shares. At
March 31, 1996, 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
--------------------------------------------
YEAR ENDED YEAR ENDED
MARCH 31, 1996 MARCH 31, 1995
-------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold 953,832 $9,604,915 2,174,807 $21,960,517
Shares issued on
reinvestment of
distributions 88,903 830,045 6,386 62,070
Shares redeemed (876,366) (8,856,483) (207,180) (2,022,990)
-------- ---------- --------- -----------
Net increase 166,369 $1,578,477 1,974,013 $19,999,597
======== ========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
CLASS II
-------------------
FOR THE PERIOD
MAY 1, 1995
THROUGH
MARCH 31, 1996
-------------------
SHARES AMOUNT
------- ----------
<S> <C> <C>
Shares sold 149,668 $1,523,870
Shares issued on reinvestment of distribu-
tions 4,179 38,680
Shares redeemed (15,813) (157,250)
------- ----------
Net increase 138,034 $1,405,300
======= ==========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 105,332 Class I shares and 11 Class II shares as of March 31,
1996.
16
<PAGE>
Templeton Global Infrastructure Fund
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton In-
vestment Counsel, Inc. (TICI), Templeton Global Investors, Inc. (TGII), Frank-
lin Templeton Distributors, Inc. (FTD), and Franklin Templeton Investor Servic-
es, Inc. (FTIS), the Fund's investment manager, administrative manager, princi-
pal underwriter, and transfer agent, respectively.
The Fund pays monthly an investment management fee to TICI equal, on an annual
basis, to 0.75% of the Fund's average daily net assets. The Fund pays TGII
monthly its allocated share of an administrative fee of 0.15% per annum of the
first $200 million of the Trust's aggregate average daily net assets, 0.135% of
the next $500 million, 0.10% of the next $500 million, and 0.075% per annum of
average net assets in excess of $1.2 billion. TGII had voluntarily agreed to
limit the total expenses of the Fund through April 15, 1995 to an annual rate
of 1.25% of the Fund's average net assets. The amount of the reimbursement for
the year ended March 31, 1996 is set forth in the Statement of Operations. For
the year ended March 31, 1996, FTD received net commissions of $25,501 from the
sale of the Fund's shares and FTIS received fees of $62,500.
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
March 31, 1996, unreimbursed expenses amounted to $1,254,545. Class II shares
redeemed within 18 months are subject to a contingent deferred sales charge.
Contingent deferred sales charges of $456 were paid to FTD for the year ended
March 31, 1996.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received fees of $20,000 for the year ended March 31,
1996.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the
year ended March 31, 1996 aggregated $10,766,032 and $6,065,951, respectively.
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 March 31, 1996, the aggregate gross unrealized appreciation and depreciation
of portfolio securities, based on cost for federal income tax purposes, was as
follows:
<TABLE>
<CAPTION>
Unrealized appreciation $ 2,649,712
<S> <C>
Unrealized depreciation (2,897,185)
-----------
Net unrealized depreciation $ (247,473)
===========
</TABLE>
17
<PAGE>
Templeton Global Infrastructure Fund
Independent Auditor's Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders
Templeton Global Infrastructure Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of Templeton Global Infrastructure Fund as of March
31, 1996, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for the periods indicated in the ac-
companying financial statements. 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 audits.
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, 1996, 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 Infrastructure Fund as of March 31, 1996, the results of its op-
erations, 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 26, 1996
18
<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.
<TABLE>
<S> <C> <C> <C>
Templeton Funds Florida* Franklin Funds Seeking Franklin Templeton Global
American Trust Georgia Growth and Income Currency Funds
Americas Government Hawaii** Balance Sheet German Government
Securities Indiana Investment Fund Bond
Developing Markets Trust Kentucky Convertible Securities Fund Global Currency
Foreign Fund Louisiana Equity Income Fund High Income Currency
Global Infrastructure Fund Maryland Global Utilities Fund Hard Currency
Global Opportunities Trust Massachusetts*** Income Fund Franklin Money
Greater European Fund Michigan*** MicroCap Value Market Funds
Growth Fund Minnesota*** Natural Resources Fund Money Fund
Growth and Income Fund Missouri Premier Return Fund Federal Money Fund
Global Bond Fund New Jersey Real Estate Securities Fund Tax-Exempt Money
Latin America Fund New York* Rising Dividends Fund Fund
Pacific Growth North Carolina Strategic Income Fund California Tax-Exempt
Global Real Estate Fund Ohio*** Utilities Fund Money Fund
Global Smaller Oregon Value New York Tax-Exempt
Company Fund Pennsylvania Money Fund
World Fund Tennessee Franklin Funds Seeking IFT U.S. Treasury Money
Texas High Current Income Market Portfolio
Franklin Funds Seeking Virginia AGE High Income Fund
Tax-Free Income Washington** Global Government Franklin Fund for Corporations
Federal Tax-Free Income Fund Corporate Qualified
Income Fund Franklin Funds Investment Grade Dividend Fund
Federal Intermediate-Term Seeking Capital Growth Income Fund
Tax-Free Income Fund California Growth Fund U.S. Government Franklin Tax-Deferred
High Yield DynaTech Fund Securities Fund Annuity
Insured Tax-Free Equity Fund Franklin Valuemark
Income Fund*** Global Health Care Franklin Funds Seeking Franklin Templeton
Puerto Rico Tax-Free Gold Fund High Current Income and Valuemark Income Plus
Income Fund Growth Fund Stability of Principal (an immediate annuity)
International Adjustable Rate
Franklin State-Specific Equity Fund Securities Fund
Funds Seeking Tax-Free Income Japan Fund Adjustable U.S. Government
Alabama Small Cap Growth Fund Securities Fund
Arizona* Short-Intermediate U.S.
Arkansas** Government
California* Securities Fund
Colorado
Connecticut Franklin Funds for
Non-U.S. Investors
Tax-Advantaged High Yield
Securities Fund
Tax-Advantaged International
Bond Fund
Tax-Advantaged U.S.
Government Securities Fund
</TABLE>
Fund Information: 1-800/342-5236
Shareholder Services: 1-800/632-2301
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.
*Two or more fund options available: long-term portfolio, intermediate-term
portfolio, a portfolio of insured 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 TEMPLETON
INFRASTRUCTURE FUND
GLOBAL
Auditors
McGladrey & Pullen, LLP INFRASTRUCTURE
555 Fifth Avenue
New York, New York 10017-2416 FUND
PRINCIPAL UNDERWRITER:
Annual Report
Franklin Templeton March 31, 1996
Distributors, Inc.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Shareholder Services
1-800-632-2301
Fund Information
1-800-342-5236
This report must be preceded or accompanied by the current prospectus of the
Templeton Global Infrastructure Fund, which contains more complete information
including charges and expenses.
Like any investment in securities, the value of the Fund's portfolio will be
subject to the risk of loss from market, currency, economic, political, and
other factors, as well as investment decisions by the investment manager which
will not always be profitable or wise. The Fund and its investors are not
protected from such losses by the investment manager. Therefore, investors who
cannot accept this risk should not invest in shares of the Fund.
To ensure the highest quality of service, telephone calls to or from our
service departments may be monitored, recorded, and accessed. These calls can
be determined by the presence of a regular beeping tone.
-------------------------------------------------------------------------------
[RECYCLED PAPER LOGO [FRANKLIN TEMPLETON LOGO
APPEARS HERE] TL413 A96 05/96 APPEARS HERE]
