<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.
May 16, 1996
Dear Shareholder:
We are pleased to bring you the second annual report of the Templeton Americas
Government Securities Fund, which covers the twelve months ended March 31, 1996.
As discussed in the Performance Summary on page 5, the Fund produced a total
return of 15.49% for the reporting period.
During the year under review, U.S. gross domestic product (GDP) rose at an
annualized rate of 1.8%, while inflation, as measured by the Consumer Price
Index, increased 2.8%. The Federal Reserve Board lowered its federal funds rate
three times during the fiscal year, and the yield on 10-year U.S. Treasury bonds
declined from 7.20% at the beginning of the period, to 6.34% on March 31, 1996.
Consequently, many investors searching for higher yields from dollar-
denominated, fixed-income securities moved into markets outside the U.S.,
1
<PAGE>
contributing to the strong performance of emerging market bonds during the
reporting period. This capital flow to emerging market countries increased
employment and consumer confidence in some of these nations, making it easier to
consolidate economic reforms. In Latin America, Brazil's real GDP rose 4.5%
during 1995, and, as of March 31, 1996, Argentina had restored its banking
reserves to their levels prior to Mexico's devaluation crisis in December 1994.
At the beginning of the reporting period, 37.2% of the Fund's total net assets
were invested in North America, 16.1% in Latin America, and 46.7% in short-term
obligations and other net assets. Recognizing the investment opportunities
present in Latin American debt, we made substantial adjustments to the Fund's
portfolio during the year. In June 1995, our position in Latin America increased
to 46% of total net assets, and by March 31, 1996, it had risen to 48.6%, with
the remaining 46.6% in North America and 4.8% in short-term obligations and
other net assets.
Templeton Americas Government
Securities Fund
Geographic Distribution on 3/31/96
Based on Total Net Assets
[PIE GRAPH APPEARS HERE]
<TABLE>
<S> <C>
United States 46.6%
Trinidad & Tobago 0.9%
Brazil 15.1%
Guatemala 1.4%
Costa Rica 3.7%
Argentina 13.6%
Columbia 1.7%
Mexico 7.3%
Panama 2.0%
Ecuador 2.9%
Short-Term Obligations &
Other Net Assets 4.8%
</TABLE>
As you can see in the chart above, Brazil was our largest Latin American
allocation on March 31, 1996. On that date, we were earning 11% to 15% interest
from our Brazilian bonds. During the year, Brazil exhibited solid economic
growth, but by the end of the period, pressure was gradually mounting from an
expansion of short-term debt and a growing fiscal deficit. In our opinion, the
Brazilian government, which owns many prosperous companies,
2
<PAGE>
may profit immensely when privatization occurs in this country. In the
meantime, we will closely monitor President Cardoso's efforts to achieve this
end.
Our second-largest Latin American allocation was in Argentina, whose economy
started to grow during the fiscal year due to the market-friendly reforms it had
implemented during the period. Although political friction surfaced between
President Menem and Finance Minister Cavallo, we believe the country will
continue restructuring and reaping potential economic rewards.
Looking forward, we are optimistic about the investment potential of fixed-
income government securities in the Western Hemisphere. Many economists expect
Mexico's 1996 real GDP to grow slightly after a dismal 1995. It is also
encouraging that Venezuela, one of the few holdouts against a free-market
system, has entered negotiations with the International Monetary Fund (IMF)
concerning an economic program, which may improve its financial plight in the
near term. Additionally, stable inflation and relatively low interest rates in
industrial nations may encourage future investment flows to developing markets.
Of course, it should be remembered that 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 involve heightened
risks related to the same factors, in addition to risks associated with
political instability, higher rates of inflation, controls on foreign
investment, and the relatively small size and lesser liquidity of these markets.
The Fund may also invest in lower-rated or unrated debt securities that have
high credit risk and may be predominantly speculative. These risks are further
discussed in the Fund's prospectus.
3
<PAGE>
This discussion reflects the strategies we employed for the Fund during the
twelve months under review, and includes our opinions as of the close of the
period. Since economic and market conditions are constantly changing, our
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.
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/ Thomas W. Wilkinson
Tom Wilkinson, CFA
Portfolio Manager
Templeton Americas Government Securities Fund
4
<PAGE>
PERFORMANCE SUMMARY
The Templeton Americas Government Securities Fund produced a total return of
15.49% for the one-year period ended March 31, 1996. Total return represents the
change in value of an investment, assuming reinvestment of dividends and capital
gains distributions, and does not include the Fund's initial sales charge.
The Fund's share price, as measured by net asset value, increased from $9.59 on
March 31, 1995 to $10.20 on March 31, 1996. During the reporting period,
shareholders received distributions of 69 cents ($0.69) per share in income
dividends and 15.5 cents ($0.155) per share in short-term capital gains. Of
course, past performance does not guarantee future results, and distributions
will vary depending on income earned by the Fund.
The graph on page 6 compares the Fund's performance since its inception on June
27, 1994, with that of the Lehman Brothers U.S. Treasury Index, the J.P. Morgan
U.S. Bond Index, and the J.P. Morgan U.S. Bond Index/Emerging Market Bond Index
(EMBI) Plus Latin Index.* Please remember that the Fund's performance differs
from that of the indices because the indices are unmanaged, do not contain cash
(the Fund generally carries a certain percentage of cash at any given time), and
include no sales charges or management expenses. Of course, one cannot invest
directly in an index.
* The Lehman Brothers U.S. Treasury Index includes fixed-rate debt issues rated
investment grade or higher by Moody's, Standard & Poor's, or Fitch, which have
at least one year to maturity. Returns are market value weighted and include
accrued interest.
The J.P. Morgan U.S. Bond Index is a total return index that tracks the U.S.
Treasuries market. Each issue is weighted according to its traded market
capitalization in U.S. dollar terms. All issues included in the index have
remaining maturities of greater than 13 months.
The J.P. Morgan U.S. Bond Index/EMBI Plus Latin Index combines 60% of the J.P.
Morgan U.S. Bond Index and 40% of the EMBI Plus Latin Index. The EMBI Plus Latin
Index tracks total returns for traded debt instruments in Argentina, Brazil,
Mexico, Ecuador, Peru, Panama, and Venezuela, reflecting the size and liquidity
of Latin external debt markets. Included in the index are U.S. dollar-
denominated Brady Bonds, loans, Eurobonds, and local markets instruments.
5
<PAGE>
[GRAPH APPEARS HERE SHOWING COMPARISON BETWEEN TEMPLETON AMERICSA GOVERNMENT
SECURITIES FUND*, LEHMAN BROTHERS U.S. TREASURY INDEX, JP MORGAN U.S. BOND
INDEX/EMBI PLUS LATIN INDEX, AND THE JP MORGAN U.S. BOND INDEX]
<TABLE>
<CAPTION>
6/94 3/96
<S> <C> <C>
Templeton Americas Government Securities Fund $ 10,000 $ 10,911
Lehman Brothers U.S. Treasury Index $ 10,000 $ 11,650
JP Morgan U.S.Bond Index/EMBI Plus Latin Index $ 10,000 $ 12,641
JP Morgan U.S. Bond Index $ 10,000 $ 11,599
</TABLE>
TEMPLETON AMERICAS GOVERNMENT
SECURITIES FUND
Periods ended March 31, 1996
<TABLE>
<CAPTION>
Since
Inception
One-Year (6/27/94)
<S> <C> <C>
Cumulative
Total Return/1/ 15.49% 13.95%
Average Annual
Total Return/2/ 10.58% 5.10%
</TABLE>
1. Cumulative total return represents the change in value of an investment over
the specified periods and does not reflect the maximum 4.25% initial sales
charge.
2. Average annual total return represents the average annual change in value of
an investment over the specified periods and reflects the maximum 4.25% initial
sales charge.
Note: All total return calculations assume reinvestment of dividends and
capital gains at net asset value. 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 business
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 may be discontinued at any time upon
notice to the
6
<PAGE>
Templeton Americas Government Securities Fund
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE (For a share outstanding throughout the period)
<TABLE>
<CAPTION>
JUNE 27, 1994
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) TO
MARCH 31, 1996 MARCH 31, 1995
-------------- -----------------
<S> <C> <C>
Net asset value, beginning of period $ 9.59 $ 10.00
------- -------
Income from investment operations:
Net investment income .75 .30
Net realized and unrealized gain (loss) .71 (.43)
------- -------
Total from investment operations 1.46 (.13)
------- -------
Distributions:
Dividends from net investment income (.69) (.28)
Distributions from net realized gains (.16) --
------- -------
Total distributions (.85) (.28)
------- -------
Change in net asset value .61 (.41)
------- -------
Net asset value, end of period $ 10.20 $ 9.59
======= =======
TOTAL RETURN* 15.49% (1.33)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 3,540 $ 2,826
Ratio of expenses to average net assets 4.98% 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 7.47% 5.07%**
Portfolio turnover rate 163.57% --
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR PERIODS
OF LESS THAN ONE YEAR.
** ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
Templeton Americas Government Securities Fund
Investment Portfolio, March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY* VALUE
- ---------------------------------------------------------------------------
<C> <S> <C>
BONDS--CORPORATE: 10.5%
- ---------------------------------------------------------------------------
60,000 U.S. Banco Ganadero SA, 9.75%, 8/26/99, 144A $ 61,350
70,000 U.S. Bancomer SA, 8.00%, 7/07/98 67,200
50,000 U.S. Bridas Corp., Yankee, 12.50%, 11/18/99 52,188
Centrais Electricas Brasileiras SA, 10.00%,
60,000 U.S. 10/30/98 61,275
Industrias Metalurgicas Pescarmona, 11.75%,
100,000 U.S. 3/27/98 100,000
30,000 U.S. Sei Holdings IX Inc., 11%, 11/30/00, 144A 31,200
----------
TOTAL BONDS--CORPORATE (cost $358,991) 373,213
- ---------------------------------------------------------------------------
BONDS--GOVERNMENT & GOVERNMENT AGENCIES: 84.7%
- ---------------------------------------------------------------------------
50,000 U.S. Asociacion Nacional del Cafe, 11.00%, 8/31/98 51,500
200,000 U.S. Banco Central de Costa Rica, 6.25%, 5/21/10 130,000
190,000 U.S. Bocon Previsionales IV, 4.50%, FRN, 9/01/02 147,336
265,303 U.S. Brazil C-Bond, 8.00%, 4/15/14 159,390
Government of Brazil:
158,100 U.S. 6.375%, FRN A, 1/01/01 141,895
340,000 U.S. 4.25%, 4/15/24 172,975
250,000 U.S. Republic of Argentina, 6.8125%, FRN, 3/31/05 180,313
260,318 U.S. Republic of Ecuador, 7.25%, FRN, 2/27/15 102,129
80,000 U.S. Republic of Panama, 6.75%, FRN, 5/10/02 71,000
U.S. Treasury Notes:
360,000 U.S. 6.25%, 5/31/00 362,250
440,000 U.S. 7.50%, 11/15/01 466,950
390,000 U.S. 7.50%, 5/15/02 415,412
200,000 U.S. 5.75%, 8/15/03 193,156
210,000 U.S. 6.50% 5/15/05 211,378
United Mexican States:
300,000 U.S. 6.25%, 12/31/19 190,875
----------
TOTAL BONDS--GOVERNMENT & GOVERNMENT AGENCIES (cost $2,991,098) 2,996,559
- ---------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 2.3% (cost $80,414)
- ---------------------------------------------------------------------------
U.S. Treasury Bills, 4.76% to 4.94% with
81,000 U.S. maturities to 6/06/96 80,402
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS: 97.5% (cost $3,430,503) 3,450,174
OTHER ASSETS, LESS LIABILITIES: 2.5% 89,999
----------
TOTAL NET ASSETS: 100.0% $3,540,173
==========
</TABLE>
* CURRENCY OF COUNTRY INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
Templeton Americas Government Securities Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (identified cost $3,430,503) $3,450,174
Cash 3,755
Receivables:
Fund shares sold 3,812
Interest 96,821
Expense reimbursement 4,678
Unamortized organization costs 44,557
----------
Total assets 3,603,797
----------
Liabilities:
Payable for fund shares redeemed 14,010
Accrued expenses 49,614
----------
Total liabilities 63,624
----------
Net assets, at value $3,540,173
==========
Net assets consist of:
Undistributed net investment income $ 20,642
Net unrealized appreciation 19,671
Accumulated net realized gain 22,602
Net capital paid in on shares of beneficial interest 3,477,258
----------
Net assets, at value $3,540,173
==========
Shares outstanding 347,193
==========
Net asset value per share
($3,540,173 / 347,193) $ 10.20
==========
Maximum offering price
($10.20 / 95.75%) $ 10.65
==========
</TABLE>
STATEMENT OF OPERATIONS
for the year ended March 31, 1996
<TABLE>
<S> <C> <C>
Interest income $280,232
Expenses:
Management fees (Note 3) $ 19,280
Administrative fees (Note 3) 4,822
Distribution fees (Note 3) 10,865
Transfer agent fees (Note 3) 2,150
Reports to shareholders 50,900
Audit fees 11,500
Legal fees (Note 3) 15,500
Registration and filing fees 25,950
Trustees' fees and expenses 500
Amortization of organization costs 13,645
Other 5,022
---------
Total expenses 160,134
Less expenses reimbursed (Note 3) (119,962)
---------
Total expenses less reimbursement 40,172
--------
Net investment income 240,060
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments 87,249
Foreign currency transactions (4,302)
---------
82,947
---------
Net unrealized appreciation on:
Investments 122,849
Foreign currency translation of other assets and
liabilities 842
---------
123,691
---------
Net realized and unrealized gain 206,638
--------
Net increase in net assets resulting from operations $446,698
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
Templeton Americas Government Securities Fund
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
JUNE 27, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
MARCH 31, 1996 MARCH 31, 1995
-------------- ----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 240,060 $ 59,420
Net realized gain (loss) on investment and
foreign currency transactions 82,947 (18,703)
Net unrealized appreciation (depreciation) 123,691 (104,020)
---------- ----------
Net increase (decrease) in net assets
resulting from operations 446,698 (63,303)
Distributions to shareholders:
From net investment income (219,418) (52,147)
From net realized gain (48,915) --
Fund share transactions (Note 2) 535,747 2,941,511
---------- ----------
Net increase in net assets 714,112 2,826,061
Net assets:
Beginning of period 2,826,061 --
---------- ----------
End of period $3,540,173 $2,826,061
========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
Templeton Americas Government Securities Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 seeks a high level of current income with total return as
a secondary objective 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. The following summarizes the Fund's significant ac-
counting 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 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 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.
11
<PAGE>
Templeton Americas Government Securities Fund
Notes to Financial Statements (cont.)
- --------------------------------------------------------------------------------
2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
At March 31, 1996, there were an unlimited number of shares of beneficial in-
terest authorized ($0.01 par value). Transactions in the Fund's shares were as
follows:
<TABLE>
<CAPTION>
JUNE 27, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
MARCH 31, 1996 MARCH 31, 1995
------------------ -------------------
SHARES AMOUNT SHARES AMOUNT
------- --------- ------- ----------
<S> <C> <C> <C> <C>
Shares sold 80,107 $ 825,694 334,587 $3,166,002
Shares issued on reinvestment of
distributions 25,304 258,089 5,210 50,581
Shares redeemed (52,953) (548,036) (45,062) (275,072)
------- --------- ------- ----------
Net increase 52,458 $ 535,747 294,735 $2,941,511
======= ========= ======= ==========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 277,191 shares as of March 31, 1996.
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 of the
first $200 million of the Trust's aggregate average daily assets, 0.135% of the
next $500 million, 0.10% of the next $500 million, and 0.075% per annum of av-
erage 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,
1996. 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 $2,021 from the sale of the Fund's shares and FTIS
received fees of $2,150.
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 which is primarily intended to re-
sult in sales of Fund shares. Such distribution fees are set forth in the
Statement of Operations. Under the distribution plan, costs and expenses ex-
ceeding the maximum may be reimbursed in subsequent periods. At March 31, 1996,
there were no unreimbursed expenses.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel
for the Fund, which firm received fees of $15,500 for the year ended March 31,
1996.
12
<PAGE>
Templeton Americas Government Securities 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, 1996 aggregated $6,083,251 and $4,440,393, 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>
<S> <C>
Unrealized appreciation $ 80,563
Unrealized depreciation (60,892)
--------
Net unrealized appreciation $ 19,671
========
</TABLE>
13
<PAGE>
Templeton Americas Government Securities Fund
Independent Auditor's Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders
Templeton Americas Government Securities Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of Templeton Americas Government Securities Fund as
of March 31, 1996, and the related statement of operations for the year then
ended, the statements of changes in net assets and the financial highlights for
the periods indicated in the accompanying financial statements. These financial
statements and financial highlights are the responsibility of the Fund's man-
agement. Our responsibility is to express an opinion on these financial state-
ments 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 Americas Government Securities Fund as of March 31, 1996, 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 princi-
ples.
McGadrey & Pullen, LLP
New York, New York
April 26, 1996
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.
<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
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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.
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TEMPLETON AMERICAS
GOVERNMENT
SECURITIES 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
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 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.
TEMPLETON AMERICAS GOVERNMETN SECURITIES FUND
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TL416 A96 5/96
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
Annual Report
March 31, 1996
