<PAGE>
Templeton Growth
and Income Fund
Your Fund's Objective:
The Templeton Growth and Income Fund seeks high total return through a flexible
policy of investing primarily in equity and debt securities of domestic and
foreign companies.
May 15, 1996
Dear Shareholder:
It is a pleasure to bring you the annual report for the Templeton Growth and
Income Fund for the fiscal year ended March 31, 1996. During this period,
economic stability, low interest rates and moderate inflation contributed to
strong performances for most financial markets. Taking advantage of these
favorable conditions, investors poured record amounts of capital into mutual
funds, which ultimately led to even higher stock and bond prices in developed
and developing countries. The Templeton Growth and Income Fund thrived within
this environment, recording a one-year total return of 18.78% for Class I
shares, as shown in the Performance Summary on page 5.
During the reporting period, we applied our long-term, value oriented approach
as we searched for new, bargain securities around the world. We added to the
number of countries in which we invest and, by March 31, 1996, increased our
holdings to more than 60 stocks and bonds. These included new positions in
Europe, Latin America,
1
<PAGE>
Israel, and the Commonwealth of Independent States (former Soviet Union).
In the U.S., where prices of fixed-income securities appreciated and the Dow
Jones Industrial Average/(R)/ advanced 16.67% over the 12-month period to
5587.14 by March 31, 1996, we selectively added to our holdings. Most of our
exposure centered on the capital goods, finance, pharmaceutical, and aerospace
sectors. At the end of the reporting period, one of our largest positions in
the portfolio was Chase Manhattan Corp. (2.2% of total net assets), one of the
largest U.S. banks, and very much a global financial institution. In fact,
almost two-thirds of its assets are outside the U.S., and many of those branches
abroad are located in emerging markets which are experiencing rapid growth.
In Europe, consumer spending and confidence remained relatively low in France,
Germany and the U.K. due to their uncertain economic prospects. Although
record-low inflation levels resulted in lower interest rates in these countries,
economic growth was depressed in part by the spending restrictions required for
membership in the European Monetary Union. We used this slow growth to
- -------------------------------------------
Templeton Growth and Income Fund
Geographic Distribution on 3/31/96
Based on Total Net Assets
[PIE GRAPH APPEARS HERE]
European Stocks 23.6%
United States Stocks 17.7%
Asian Stocks 8.4%
Australian Stocks 5.7%
Latin American Stocks 4.1%
Fixed-Income Securities 5.5%
Short-Term Obligations &
Other Net Assets 35.0%
purchase stocks at what we believed were bargain prices. Gedeon Richter, our
third largest holding, is a Hungarian pharmaceutical company with low production
costs and a growing market presence in the Commonwealth of Independent States.
Additionally, it is one of the few U.S. Federal Drug Administration-approved
suppliers of the active ingredient of Tagamet, an over-the-counter antacid
product sold in the U.S. We also participated in the shares offered by the
Hungarian government in their privatization of MOL Magyar Olay, an oil and
natural gas
2
<PAGE>
company with the potential to benefit from a raising of domestic gas prices to
international levels. On March 31, 1996, this company's share price had risen
more than 30% since the November 1995 privatization.
Taking advantage of the despondent selling that spilled over from Mexico's
financial troubles and currency devaluation in December 1994, we increased our
exposure to Latin American and Asian markets with our purchases of Telefonica de
Argentina (Argentina) and Bank Bali (Indonesia).
Looking forward, we envision substantial improvement in the environment for
global investing. In our opinion, many global markets have been neglected
recently in favor of the euphoria in U.S. financial markets. However, we
believe that the efforts we have made to position your Fund have the potential
to produce favorable results in the future. We will continue to build and
improve our ability to serve you.
This discussion reflects the strategies we employed for the fund during the
fiscal period, and includes our opinions as of the close of the period. Since
economic and market conditions are constantly changing, our
- --------------------------------------------------------
Templeton Growth and Income Fund
Top 10 Holdings on 3/31/96
Based on Total Net Assets
% of Total
Company, Industry, Country Net Assets
- --------------------------------------------------------
Government of New Zealand, 10.00%, 7/15/97
Government Bonds, New Zealand 2.5%
- --------------------------------------------------------
Government of Sweden, 10.75%, 1/23/97
Government Bonds, Sweden 2.3%
- --------------------------------------------------------
Gedeon Richter Ltd., GDR 144A
Multi-Industry, Hungary 2.2%
- --------------------------------------------------------
Chase Manhattan Corp., New
Banking, U.S. 2.2%
- --------------------------------------------------------
HIH Winterthur Insurance
Insurance, Australia 2.2%
- --------------------------------------------------------
Pharmacia & Upjohn, Inc.
Health & Personal Care, U.S. 1.9%
- --------------------------------------------------------
Pacific BBA Ltd.
Machinery & Engineering, Australia 1.8%
- --------------------------------------------------------
MOL Magyar Olay--Es Gazipari RT, GDS 144A,
Energy Sources, Hungary 1.7%
- --------------------------------------------------------
Pacific Dunlop Ltd.
Multi-Industry, Australia 1.7%
- --------------------------------------------------------
Unidanmark AS, A
Banking, Denmark 1.6%
- --------------------------------------------------------
For a complete list of portfolio holdings, please see page 9 of this report.
strategies, evaluations, conclusions and decisions regarding portfolio holdings
may change in light of new circumstances. 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.
3
<PAGE>
There are, of course, special risks involved with global investing, particularly
in emerging markets, related to market and currency volatility, adverse social
and political developments, and the relatively small size and lesser liquidity
of these markets. For example, Russia's system of share registration and custody
creates certain risks of loss that are not normally associated with other
markets. These risks are discussed in the Fund's prospectus.
We appreciate your continued support and look forward to serving your investment
needs in the years to come.
Sincerely,
[SIGNATURE APPEARS HERE]
Mark Holowesko, CFA
President
Templeton Global Investment Trust
[SIGNATURE APPEARS HERE]
Dorian B. Foyil
Portfolio Manager
Templeton Growth and Income Fund
4
<PAGE>
Performance Summary
Class I
The Templeton Growth and Income Fund Class I shares reported a cumulative total
return of 18.78% for the one-year period ended March 31, 1996. Cumulative total
return represents the change in value of an investment, assuming reinvestment of
dividends and capital gains distributions, and does not include the maximum
5.75% initial sales charge.
The price of the Fund's Class I shares, as measured by net asset value,
increased from $10.05 on March 31, 1995, to $11.39 on March 31, 1996. During
the fiscal year, the Class I shares paid distributions totaling 49 cents ($0.49)
per share, including 28.5 cents ($0.285) per share in dividend income and 20.5
cents ($0.205) per share 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 on page 6 compares the Fund's
performance since its inception with the unmanaged Morgan Stanley Capital
International (MSCI) World Index, which tracks 22 equity markets worldwide. It
also shows the Fund's performance against the Consumer Price Index (CPI), a
commonly used measure of inflation. Please remember that the Fund's performance
differs from that of the index because the index does not contain cash or fixed-
income securities (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.
Under Section 854(b)(2) of the Internal Revenue Code, the Templeton Growth and
Income Fund Class I and Class II shares hereby designate 12.37% of ordinary
income dividends paid by the Fund during the fiscal year ended March 31, 1996,
as income qualifying for the corporate dividends received deductions.
5
<PAGE>
TEMPLETON GROWTH AND INCOME FUND-CLASS I
Total return Index Comparison
$10,000 Investment (3/14/94-3/31/96)
[Graph appears here showing comparison between Templeton Growth and Income
Fund-Class!*, MSCI World Index and the CPI]
3/94 3/96
Templeton Growth and
Income Fund-Class I $10,000 $11,367
MSCI World Index $10,000 $12,936
CPI $10,000 $10,584
*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.
**Source: U.S. Bureau of Labor Statistics
Templeton Growth and Income Fund
Class I
Periods Ended 3/31/96
Since
Inception
1-Year (3/14/94)
Cumulative Total
Return/1/ 18.78% 20.60%
Average Annual
Total Return/2/ 11.98% 6.45%
1. Cumulative total return represents the change in value of an investment over
the specified periods and does not reflect the maximum 5.75% initial sales
charge.
2. Average annual total return represents the average annual change in value of
an investment over the specified periods. It includes the maximum 5.75% initial
sales charge.
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 the
countries where investments are made. Because of these factors, your shares,
when redeemed, may be worth more or less than their original cost. Past
performance is not predictive of future results.
All total return calculations reflect the deduction of a proportional share of
Fund expenses on an annual basis. The Fund's 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 waiver may be discontinued at any time
upon notice to the Fund's Board of Trustees.
6
<PAGE>
Performance Summary
Class II
The Templeton Growth and Income Fund Class II shares reported a cumulative total
return of 16.51% since inception on May 1, 1995. Cumulative total return
represents the change in value of an investment, assuming reinvestment of
dividends and capital gains distributions, and does not include sales charges.
The price of the Fund's Class II shares, as measured by net asset value,
increased from $10.19 on May 1, 1995, to $11.33 on March 31, 1996. During the
abbreviated fiscal year, the Class II shares paid distributions totaling 48.79
cents ($0.4879) per share, including 28.29 cents ($0.2829) per share in dividend
income and 20.5 cents ($0.205) per share 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 on page 8 compares the Fund's performance since its inception with
the unmanaged Morgan Stanley Capital International (MSCI) World Index, which
tracks 22 equity markets worldwide. It also shows the Fund's performance against
the Consumer Price Index (CPI), a commonly used measure of inflation. Please
remember that the Fund's performance differs from that of the index because the
index does not contain cash or fixed-income securities (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.
Under Section 854(b)(2) of the Internal Revenue Code, the Templeton Growth and
Income Fund Class I and Class II shares hereby designate 12.37% of ordinary
income dividends paid by the Fund during the fiscal year ended March 31, 1996,
as income qualifying for the corporate dividends received deductions.
7
<PAGE>
TEMPLETON GROWTH AND INCOME FUND-CLASS II
Total Return Index Comparison
$10,000 Investment (5/1/95-3/31/96)
[Graph appears here showing comparison between Templeton Growth and Income
Fund-Class II, MSCI World Index and the CPI]
5/95 3/96
Templeton Growth and
Income Fund-Class II* $10,000 $11,439
MSCI World Index $10,000 $11,650
CPI** $10,000 $10,237
*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.
**Source: U.S. Bureau of Labor Statistics.
Templeton Growth and Income Fund
Class II
Period Ended 3/31/96
Since
Inception
(5/1/95)
Cumulative Total
Return/1/ 16.51%
Average Annual
Total Return/2/ 14.39%
1. Cumulative total return represents the change in value of an investment over
the specified period and does not reflect the 1.0% initial sales charge or the
1.0% contingent deferred sales charge (CDSC), applicable to shares redeemed
within the first 18 months of investment.
2. Aggregate total return represents the change in value of an investment over
the specified period and reflects the 1.0% initial sales charge and the 1.0%
CDSC, applicable to shares redeemed within the first 18 months of investment.
Since Class II Shares have existed for less than one year, average annual total
returns are not provided.
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 the
countries where investments are made. Because of these factors, your shares,
when redeemed, may be worth more or less than their original cost. Past
performance is not predictive of future results.
All total return calculations reflect the deduction of a proportional share of
Fund expenses on an annual basis. The Fund's 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 waiver may be discontinued at any time
upon notice to the Fund's Board of Trustees.
8
<PAGE>
Templeton Growth and Income Fund
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE--CLASS I
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
YEAR ENDED MARCH 14, 1994
MARCH 31 (COMMENCEMENT
--------------- OF OPERATIONS) TO
1996 1995 MARCH 31, 1994
------- ------ -----------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.05 $10.01 $10.00
------- ------ ------
Income from investment operations:
Net investment income .29 .16 .009
Net realized and unrealized gain (loss) 1.54 (.02) .001
------- ------ ------
Total from investment operations 1.83 .14 .01
------- ------ ------
Distributions:
Dividends from net investment income (.29) (.10) --
Distributions from net realized gains (.20) -- --
------- ------ ------
Total distributions (.49) (.10) --
------- ------ ------
Change in net asset value 1.34 .04 .01
------- ------ ------
Net asset value, end of period $ 11.39 $10.05 $10.01
======= ====== ======
TOTAL RETURN* 18.78% 1.43% .10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $11,732 $5,953 $ 100
Ratio of expenses to average net assets 2.71% 6.11% 32.15%**
Ratio of expenses, net of reimbursement, to
average net assets 1.25% 1.25% 1.25%**
Ratio of net investment income to average
net assets 2.98% 2.51% 1.89%**
Portfolio turnover rate 10.21% 19.33% --
Average commission rate paid (per share) $ .0250
</TABLE>
*TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR PERIODS OF
LESS THAN ONE YEAR.
**ANNUALIZED.
9
<PAGE>
Templeton Growth and Income 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 $10.19
------
Income from investment operations:
Net investment income .22
Net realized and unrealized gain 1.41
------
Total from investment operations 1.63
------
Distributions:
Dividends from net investment income (.29)
Distributions from net realized gains (.20)
------
Total distributions (.49)
------
Change in net asset value 1.14
------
Net asset value, end of period $11.33
======
TOTAL RETURN* 16.51%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $2,205
Ratio of expenses to average net assets 3.31%**
Ratio of expenses, net of reimbursement, to average net assets 1.90%**
Ratio of net investment income to average net assets 1.59%**
Portfolio turnover rate 10.21%
Average commission rate paid (per share) $.0250
</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.
10
<PAGE>
Templeton Growth and Income Fund
Investment Portfolio, March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- ------------------------------------------------------------------------------
COMMON STOCKS: 56.8%
- ------------------------------------------------------------------------------
Aerospace & Military Technical Systems: 2.0%
Boeing Co. U.S. 1,100 $ 95,288
General Motors Corp., H U.S. 2,851 180,326
-----------
275,614
- ------------------------------------------------------------------------------
Automobiles: 1.6%
Volvo AB, B Swe. 9,376 218,275
- ------------------------------------------------------------------------------
Banking: 5.9%
Banco Popular Espanol Sp. 1,160 200,414
Chase Manhattan Corp., New U.S. 4,326 305,011
PT Bank Bali, fgn. Indo. 47,500 101,583
Unidanmark AS, A Den. 4,883 221,020
-----------
828,028
- ------------------------------------------------------------------------------
Broadcasting & Publishing: 0.8%
Oriental Press Group Limited H.K. 250,000 113,137
- ------------------------------------------------------------------------------
Building Materials & Components: 2.2%
Anglian Group PLC U.K. 98,500 202,959
Mirgor SA Comercial Industrial
Financiera
Inmobiliari, ADR, 144A Arg. 34,520 99,245
-----------
302,204
- ------------------------------------------------------------------------------
Chemicals: 1.4%
Rhone-Poulenc SA, A Fr. 7,703 198,634
- ------------------------------------------------------------------------------
Construction & Housing: 0.9%
Dragados y Construcciones SA Sp. 9,800 133,067
- ------------------------------------------------------------------------------
Data Processing & Reproduction: 1.5%
International Business Machines
Corp. U.S. 1,852 205,804
- ------------------------------------------------------------------------------
Electrical & Electronics: 1.6%
Motorola Inc. U.S. 4,000 212,000
Stanilite Pacific Ltd. Aus. 48,924 8,411
-----------
220,411
- ------------------------------------------------------------------------------
Energy Sources: 2.8%
*MOL Magyar Olay--Es Gazipari RT,
GDS 144A Hun. 22,456 239,156
Valero Energy Corp. U.S. 5,910 145,534
-----------
384,690
- ------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
Templeton Growth and Income Fund
Investment Portfolio, March 31, 1996 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- ---------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ---------------------------------------------------------------------------
Forest Products & Paper: 2.1%
Boise Cascade Corp. U.S. 4,203 $ 176,526
*Portucel Industrial Empresa
Product Celulose,
ADR, 144A Port. 18,900 113,873
-----------
290,399
- ---------------------------------------------------------------------------
Health & Personal Care: 3.4%
Ciba-Geigy AG Swtz. 54 67,605
Medeva PLC U.K. 37,115 138,506
Pharmacia & Upjohn Inc. U.S. 6,630 264,371
-----------
470,482
- ---------------------------------------------------------------------------
Insurance: 5.5%
HIH Winterthur Insurance Aus. 179,300 304,048
Providian Corp. U.S. 3,260 145,478
Reliastar Financial Corp. U.S. 1,990 90,048
Torchmark Corp. U.S. 2,209 99,405
UNUM Corp. U.S. 2,119 126,081
-----------
765,060
- ---------------------------------------------------------------------------
Machinery & Engineering: 3.3%
IHC Caland NV Neth. 5,100 208,062
Pacific BBA Ltd. Aus. 113,300 248,793
-----------
456,855
- ---------------------------------------------------------------------------
Merchandising: 3.4%
Argyll Group PLC U.K. 22,000 103,086
*Interdiscount Holding AG Swtz. 2,858 60,676
Koninklijke Bijenkorf Beheer
NV (KBB) Neth. 1,280 82,358
Kwik Save Group PLC U.K. 13,370 95,911
Macintosh NV Neth. 550 13,616
Tesco PLC U.K. 28,780 117,065
-----------
472,712
- ---------------------------------------------------------------------------
Metals & Mining: 1.4%
*Pechiney SA, A Fr. 4,675 195,352
- ---------------------------------------------------------------------------
Multi-Industry: 5.9%
Amer Group Ltd., A Fin. 5,398 86,199
Cheung Kong Holdings Ltd. H.K. 28,000 197,311
*Gedeon Richter Ltd., GDR 144A Hun. 8,540 305,305
Pacific Dunlop Ltd. Aus. 98,136 231,599
-----------
820,414
- ---------------------------------------------------------------------------
</TABLE>
12
<PAGE>
Templeton Growth and Income Fund
Investment Portfolio, March 31, 1996 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Real Estate: 4.9%
Hang Lung Development Co. Ltd. H.K. 68,000 $ 129,687
*Hang Lung Development Co. Ltd.,
wts. H.K. 6,800 1,780
Hong Kong Land H.K. 68,500 164,400
Hysan Development Co. Ltd. H.K. 29,000 93,554
New World Development Co. Ltd. H.K. 34,784 161,912
PT Jaya Properties, fgn. Indo. 5,000 15,825
Security Capital Industrial Trust U.S. 6,782 118,685
-----------
685,843
- -------------------------------------------------------------------------------
Telecommunications: 1.8%
Telefonica de Argentina SA, B, ADR Arg. 8,000 205,000
Telefonos de Mexico SA, L, ADR Mex. 1,520 49,970
-----------
254,970
- -------------------------------------------------------------------------------
Textiles & Apparel: 1.0%
Liz Claiborne Inc. U.S. 1,320 45,210
Nike Inc., B U.S. 1,200 97,500
-----------
142,710
- -------------------------------------------------------------------------------
Utilities-Electrical & Gas: 3.4%
China Light & Power Co. Ltd. H.K. 5,500 24,819
Endesa-Empresa Nacional de
Electricidad SA Sp. 2,200 126,049
Texas Utilities Electric Co. U.S. 3,850 159,294
Thames Water Group PLC U.K. 19,040 166,954
-----------
477,116
-----------
TOTAL COMMON STOCKS (cost $6,834,512) 7,911,777
- -------------------------------------------------------------------------------
PREFERRED STOCKS: 2.7%
- -------------------------------------------------------------------------------
Cia de Inversiones en
Telecomunicaciones SA,
7.00%, conv., 3/03/98, pfd. Arg. 4,148 218,807
Philippine Long Distance Telephone
Co.,
7.00%, conv., pfd. Phil. 3,140 162,495
-----------
TOTAL PREFERRED STOCKS (cost $394,168) 381,302
- -------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
Templeton Growth and Income Fund
Investment Portfolio, March 31, 1996 (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
INDUSTRY ISSUE COUNTRY LOCAL CURRENCY** VALUE
<C> <S> <C> <C> <C>
- ------------------------------------------------------------------------------
BONDS: 5.5%
- ------------------------------------------------------------------------------
Government of New Zealand,
10.00%, 7/15/97 N.Z. 510,000 $ 353,392
Government of Sweden,
10.75%, 1/23/97 Swe. 2,100,000 324,371
Jardine Strategic Holdings
Ltd.,
7.50%, conv., 5/07/49 U.S. 78,000 87,360
-----------
TOTAL BONDS (cost $768,075) 765,123
- ------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 34.2% (cost
$4,760,581)
- ------------------------------------------------------------------------------
U.S. Treasury Bills, 4.53%
to 5.09%, with maturities
to 6/06/96 U.S. 4,783,000 4,760,528
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS: 99.2% (cost
$12,757,336) 13,818,730
OTHER ASSETS, LESS LIABILITIES: 0.8% 118,437
-----------
TOTAL NET ASSETS: 100.0% $13,937,167
===========
</TABLE>
*NON-INCOME PRODUCING.
**CURRENCY OF COUNTRIES INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
Templeton Growth and Income Fund
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (identified cost $12,757,336) $13,818,730
Cash 898
Receivables:
Fund shares sold 234,157
Dividends and interest 32,747
Fee reimbursement 12,905
Unamortized organization costs 43,109
-----------
Total assets 14,142,546
-----------
Liabilities:
Payables:
Investment securities purchased 114,882
Fund shares redeemed 36,011
Accrued expenses 54,486
-----------
Total liabilities 205,379
-----------
Net assets, at value $13,937,167
===========
Net assets consist of:
Undistributed net investment income $ 52,562
Net unrealized appreciation 1,061,394
Accumulated net realized loss (47,494)
Net capital paid in on shares of beneficial interest 12,870,705
-----------
Net assets, at value $13,937,167
===========
Class I
Net asset value per share
($11,732,146 / 1,030,458
shares outstanding) $ 11.39
===========
Maximum offering price
($11.39 / 94.25%) $ 12.08
===========
Class II
Net asset value per share
($2,205,021 / 194,620
shares outstanding) $ 11.33
===========
Maximum offering price
($11.33 / 99.00%) $ 11.44
===========
</TABLE>
STATEMENT OF OPERATIONS
for the year ended March 31, 1996
<TABLE>
<S> <C> <C>
Investment income:
(net of $12,612
foreign taxes withheld)
Dividends $ 180,056
Interest 178,031
----------
Total income $ 358,087
Expenses:
Management fees (Note 3) 64,366
Administrative fees (Note 3) 12,868
Distribution fees (Note 3)
Class I 27,742
Class II 6,702
Transfer agent fees (Note 3) 17,700
Custodian fees 700
Reports to shareholders 52,000
Audit fees 17,500
Legal fees (Note 3) 7,000
Registration and filing fees 13,300
Amortization of
organization costs 14,303
Other 2,616
----------
Total expenses 236,797
Less expenses reimbursed (Note 3) (125,066)
----------
Total expenses
less reimbursement 111,731
----------
Net investment income 246,356
Realized and unrealized gain (loss):
Net realized loss on:
Investments (38,892)
Foreign currency transactions (8,602)
----------
(47,494)
Net unrealized appreciation
on investments 1,213,077
----------
Net realized and unrealized gain 1,165,583
----------
Net increase in net assets resulting from operations $1,411,939
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
Templeton Growth and Income 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 $ 246,356 $ 86,771
Net realized gain (loss) on investment and foreign
currency transactions (47,494) 124,538
Net unrealized appreciation (depreciation) 1,213,077 (151,711)
----------- ----------
Net increase in net assets resulting from opera-
tions 1,411,939 59,598
Distributions to shareholders:
From net investment income
Class I (208,786) (48,682)
Class II (23,185) --
From net realized gain
Class I (124,139) --
Class II (399) --
Fund share transactions (Note 2)
Class I 4,802,908 5,842,107
Class II 2,125,470 --
----------- ----------
Net increase in net assets 7,983,808 5,853,023
Net assets:
Beginning of year 5,953,359 100,336
----------- ----------
End of year $13,937,167 $5,953,359
=========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
Templeton Growth and Income Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Growth and Income Fund (the Fund), formerly Templeton Global Rising
Dividends Fund, is a separate series of Templeton Global Investment Trust (the
Trust), a Delaware business trust, which is an open-end, diversified management
investment company registered under the Investment Company Act of 1940. The
Fund seeks high total return through a flexible policy of investing primarily
in equity and debt securities of domestic and foreign companies. 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. 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.
E. Unamortized Organization Costs:
Organization costs are being amortized on a straight line basis over five
years.
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.
17
<PAGE>
Templeton Growth and Income 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 were 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 618,177 $ 6,754,453 648,511 $6,506,203
Shares issued on reinvestment of distributions 29,106 300,763 4,504 43,729
Shares redeemed (208,997) (2,252,308) (70,865) (707,825)
-------- ----------- ------- ----------
Net increase 438,286 $ 4,802,908 582,150 $5,842,107
======== =========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
CLASS II
-------------------
FOR THE PERIOD
MAY 1, 1995
THROUGH
MARCH 31, 1996
-------------------
SHARES AMOUNT
------- ----------
<S> <C> <C>
Shares sold 199,693 $2,184,545
Shares issued on reinvestment of distributions 1,785 18,660
Shares redeemed (6,858) (77,735)
------- ----------
Net increase 194,620 $2,125,470
======= ==========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 105,789 Class I shares and 10 Class II shares as of March 31,
1996.
18
<PAGE>
Templeton Growth and Income 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 Global
Advisors Ltd. (TGAL), Templeton Global Investors, Inc. (TGII), Franklin Temple-
ton Distributors, Inc. (FTD), and Franklin Templeton Investor Services, Inc.
(FTIS), the Fund's investment manager, administrative manager, principal under-
writer, and transfer agent, respectively.
The Fund pays monthly an investment management fee to TGAL equal, on an annual
basis, to 0.75% of the Fund's average daily net assets. The Fund pays TGII
monthly its allocated share of an administrative fee of 0.15% per annum on the
first $200 million of the Trust's aggregate average daily net assets, 0.135% of
the next $500 million, 0.10% of the next $500 million, and 0.075% per annum of
average net assets in excess of $1.2 billion. TGAL 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% and 1.90% of average net assets of Class I
and II shares, respectively, through December 31, 1996. The amount of the reim-
bursement 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
$29,841 from the sale of the Fund's shares and FTIS received fees of $17,700.
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, these unreimbursed expenses were $805,014. Class II shares re-
deemed within 18 months are subject to a contingent deferred sales charge. Con-
tingent deferred sales charges of $49 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 $7,000 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 $5,457,727 and $573,419, respectively. The
cost of securities for income tax purposes is the same as that shown in the In-
vestment 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 $1,572,472
Unrealized depreciation (511,078)
----------
Net unrealized appreciation $1,061,394
==========
</TABLE>
5. TAX LOSS CARRYOVERS
At March 31, 1996, the Fund had tax basis capital losses of $39,000 which may
be carried over to offset future capital gains. Such losses expire in 2004.
19
<PAGE>
Templeton Growth and Income Fund
Independent Auditor's Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders
Templeton Growth and Income Fund
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of Templeton Growth and Income Fund, formerly Temple-
ton Global Rising Dividends Fund, as of March 31, 1996, and the related state-
ment 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 accompanying financial statements.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these fi-
nancial 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 Growth and Income Fund as of March 31, 1996, the results of its opera-
tions, the changes in its net assets and the financial highlights for the peri-
ods indicated, in conformity with generally accepted accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
April 26, 1996
20
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<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
Greater European Fund Michigan*** MicroCap Value Franklin Money
Growth Fund Minnesota*** Natural Resources Fund Market Funds
Growth and Income Fund Missouri Premier Return Fund Money Fund
Global Bond Fund New Jersey Real Estate Securities Fund Federal Money Fund
Latin America Fund New York* Rising Dividends Fund Tax-Exempt Money
Pacific Growth North Carolina Strategic Income Fund Fund
Global Real Estate Fund Ohio*** Utilities Fund California Tax-Exempt
Global Smaller Oregon Value Money Fund
Company Fund Pennsylvania New York Tax-Exempt
World Fund Tennessee Franklin Funds Seeking Money Fund
Texas High Current Income IFT U.S. Treasury Money
Franklin Funds Seeking Virginia AGE High Income Fund Market Portfolio
Tax-Free Income Washington** Global Government
Federal Tax-Free Income Fund Franklin Fund for Corporations
Income Fund Franklin Funds Investment Grade Corporate Qualified
Federal Intermediate-Term Seeking Capital Growth Income Fund Dividend Fund
Tax-Free Income Fund California Growth Fund U.S. Government
High Yield DynaTech Fund Securities Fund Franklin Tax-Deferred
Insured Tax-Free Equity Fund Annuity
Income Fund*** Global Health Care Franklin Funds Seeking Franklin Valuemark
Puerto Rico Tax-Free Gold Fund High Current Income and Franklin Templeton
Income Fund Growth Fund Stability of Principal (Valuemark Income Plus
International Adjustable Rate an immediate annuity)
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 GROWTH
AND INCOME 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 Growth and Income 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.
- --------------------------------------------------------------------------------
TL414 A96 05/96
[RECYCLED PAPER LOGO APPEARS HERE]
TEMPLETON
GROWTH
AND
INCOME
FUND
Annual Report
March 31, 1996
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
