<PAGE> 1
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.
NOVEMBER 15, 1996
Dear Shareholder:
We are pleased to bring you this semi-annual report of the Templeton Global
Infrastructure Fund, which covers the six months ended September 30, 1996.
During this period, price volatility characterized many of the world's stock
markets, as investors reacted to changes in interest rates and variations in
corporate profits. Although market indices in many countries recorded solid
gains, at the end of the period stock prices in most markets appeared to be
reasonable. The major exception was Japan, where the Nikkei index traded at a
price/earnings multiple of 100, versus a multiple of only 22 for the Morgan
Stanley Capital International World Index (MSCI), which tracks 22 equity markets
worldwide.
Within this environment, the Fund's Class I shares provided a six-month total
return of 7.62%,
1
<PAGE> 2
TEMPLETON GLOBAL
INFRASTRUCTURE FUND
GEOGRAPHIC DISTRIBUTION ON 9/30/96
BASED ON TOTAL NET ASSETS
[PIE CHART]
<TABLE>
<S> <C>
European Stocks 37.5%
United States Stocks 22.4%
Asian Stocks 18.6%
Latin American Stocks 10.0%
Canadian Stocks 3.7%
Australian &
New Zealand Stocks 4.5%
Short-Term Obligations &
Other Net Assets 3.3%
</TABLE>
as shown in the Performance Summary on page 5, significantly outperforming the
unmanaged MSCI, which posted a total return of only 0.83%.(1) These positive
results can be attributed in part to overweighting of the better performing
emerging markets and the strong performance of several individual securities.
For example, 3Com, a U.S.-based global supplier of data processing equipment,
and Telebras-Telecomunicacoes Brasileiras, the Brazilian telephone company, each
appreciated at least 50% during the reporting period.
On September 30, 1996, our asset allocations by geographic region were virtually
unchanged from those of March 31, 1996. European stocks (37.5% of total net
assets) remained our largest holdings, followed by U.S. stocks, which accounted
for 22.4%.
Within Europe, our single largest position was Alcatel Alsthom, a French
telecommunications equipment manufacturer whose new management is significantly
restructuring the company. With asset divestitures and cost-cutting efforts
exceeding expectations, we remain optimistic about the company's long-term
prospects. During the period, we originated a position in Det Danske Traelast
Kompagni, a Danish wholesaler and retailer of building materials, hardwood, home
and garden products and lumber. It is currently expanding outside of Scandinavia
into the Baltic region and other former eastern bloc nations, which suggests a
positive future for this company.
1. PLEASE REMEMBER THAT THE FUND'S PERFORMANCE DIFFERS FROM THAT OF THE INDEX
BECAUSE, AMONG OTHER THINGS, THE INDEX DOES NOT CONTAIN CASH (THE FUND GENERALLY
CARRIES A CERTAIN PERCENTAGE OF CASH AT ANY GIVEN TIME), IS NOT MANAGED
ACCORDING TO ANY INVESTMENT STRATEGY AND INCLUDES NO SALES CHARGES OR MANAGEMENT
EXPENSES. OF COURSE, ONE CANNOT INVEST DIRECTLY IN AN INDEX.
2
<PAGE> 3
In the U.S., we added Gradall Industries to the portfolio. A manufacturer of
excavators and material handling equipment, it serves niche markets within the
construction sector, and its products typically command premium prices.
In Latin America, which represented 10% of the Fund's assets, we continued to
buy stock which we viewed as attractively valued in companies such as La Cemento
Nacional (LCN), the largest Ecuadorian producer of cement. Its stock price had
fallen 50% between November 1994 and April 1996, partly as an aftershock of
Mexico's currency crisis, and partly due to Ecuador's border war with Peru.
Since these turmoils had ended, we felt that LCN's stock represented good value.
Looking forward, we remain positive about the future for global equities. As
economies around the world integrate more, well-positioned companies are finding
new opportunities. According to a recent report from the United Nations,
multinational firms invested a record $315 billion outside their own countries
in 1995, a 40% increase from the 1994 level. We believe that a large portion of
this money funded infrastructure projects that positively impact many of the
Fund's holdings.
TEMPLETON GLOBAL
INFRASTRUCTURE FUND
TOP 10 HOLDINGS ON 9/30/96
AS A PERCENTAGE OF TOTAL NET ASSETS
<TABLE>
<CAPTION>
COMPANY, % OF TOTAL
INDUSTRY, COUNTRY NET ASSETS
- -----------------------------------------------------------
<S> <C>
Alcatel Alsthom SA
Electrical & Electronics, France 2.7%
- -----------------------------------------------------------
Gradall Industries Inc.
Machinery & Engineering, United States 2.3%
- -----------------------------------------------------------
Metra OY, B
Multi-Industry, Finland 2.3%
- -----------------------------------------------------------
British Gas PLC
Utilities - Electrical & Gas, United Kingdom 2.1%
- -----------------------------------------------------------
Svedala Industri, A
Building Materials & Components, Sweden 1.9%
- -----------------------------------------------------------
3Com Corp.
Data Processing & Reproduction,
United States 1.9%
- -----------------------------------------------------------
Motorola Inc.
Electrical & Electronics, United States 1.8%
- -----------------------------------------------------------
Guangdong Electric Power
Development Co. Ltd., B, 144a
Utilities - Electrical & Gas, China 1.8%
- -----------------------------------------------------------
Newbridge Networks Corp.
Data Processing & Reproduction, Canada 1.8%
- -----------------------------------------------------------
Millicom International Cellular SA
Telecommunications, Luxembourg 1.7%
- -----------------------------------------------------------
</TABLE>
FOR A COMPLETE LIST OF PORTFOLIO HOLDINGS, PLEASE SEE PAGE 9 OF THIS REPORT.
Of course, investing in foreign securities involves 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 these markets involve heightened risks
related to the same factors, in addition to risks associated with the relatively
3
<PAGE> 4
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 risks and other considerations are
discussed in the Fund's 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 830% in the last 15
years, but has suffered five declines of more than 20% during that time.(2)
Although we believe that the 1997 transfer of power from Hong Kong to China will
be successful in the long term, we recognize that short-term uncertainty may
again buffet this market.
This discussion reflects the strategies we employed for the Fund during the
reporting period, and includes our opinions as of the close of the period. Since
economic and market conditions are constantly changing, our strategies,
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 the securities we purchase or sell for the Fund.
Thank you for your continued support of the Templeton Global Infrastructure
Fund. We appreciate your support, welcome your comments and look forward to
serving your investment needs 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
2. SOURCE: BLOOMBERG. BASED ON QUARTERLY PERCENTAGE PRICE CHANGE OVER 15 YEARS
ENDED SEPTEMBER 30, 1996.
4
<PAGE> 5
PERFORMANCE SUMMARY
CLASS I
Templeton Global Infrastructure Fund Class I shares provided a cumulative total
return of 7.62% for the six-month period ended September 30, 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 initial sales charge.
As measured by net asset value, the Fund's share price increased by $0.70, from
$10.04 on March 31, 1996 to $10.74 on September 30, 1996. During the reporting
period, shareholders received distributions totaling 6.5 cents ($0.065),
including 1.5 cents ($0.015) per share in dividend income and 5.0 cents ($0.05)
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.
TEMPLETON GLOBAL
INFRASTRUCTURE FUND - CLASS I
Periods Ended September 30, 1996
<TABLE>
<CAPTION>
SINCE
INCEPTION
ONE-YEAR (3/14/94)
<S> <C> <C>
Cumulative Total Return(1) 7.27% 13.91%
Average Annual Total Return(2) 1.13% 15.85%
Value of $10,000 Investment(3) $10,113 $10,736
</TABLE>
1. CUMULATIVE TOTAL RETURN REPRESENTS THE CHANGE IN VALUE OF AN INVESTMENT OVER
THE INDICATED PERIODS AND DOES NOT INCLUDE THE INITIAL SALES CHARGE.
2. AVERAGE ANNUAL TOTAL RETURN REPRESENTS THE AVERAGE ANNUAL CHANGE IN VALUE OF
AN INVESTMENT OVER THE INDICATED PERIODS AND INCLUDES THE MAXIMUM 5.75% SALES
CHARGE.
3. THESE FIGURES REPRESENT THE VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE FUND OVER THE INDICATED PERIODS AND INCLUDE THE MAXIMUM 5.75% INITIAL SALES
CHARGE.
ALL TOTAL RETURN CALCULATIONS ASSUME REINVESTMENT OF DIVIDEND AND CAPITAL GAINS
DISTRIBUTIONS WHEN PAID. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE
WITH MARKET CONDITIONS, CURRENCIES AND THE ECONOMIC, SOCIAL, AND POLITICAL
CLIMATES OF THE 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.
FROM MARCH 14, 1994 THROUGH APRIL 15, 1995, EXPENSE REDUCTIONS BY THE FUND'S
BUSINESS MANAGER INCREASED THE FUND'S TOTAL RETURNS.
5
<PAGE> 6
PERFORMANCE SUMMARY
CLASS II
Templeton Global Infrastructure Fund Class II shares provided a cumulative total
return of 7.38% for the six-month period ended September 30, 1996. 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.
As measured by net asset value, the Fund's share price increased by $0.68, from
$9.99 on March 31, 1996 to $10.67 on September 30, 1996. During the reporting
period, shareholders received distributions totaling 5.74 cents ($0.0574),
including 0.74 cents ($0.0074) per share in dividend income, and 5.0 cents
($0.05) 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.
TEMPLETON GLOBAL
INFRASTRUCTURE FUND - CLASS II
Periods Ended September 30, 1996
<TABLE>
<CAPTION>
SINCE
INCEPTION
ONE-YEAR (5/1/95)
<S> <C> <C>
Cumulative Total Return(1) 6.77% 15.83%
Average Annual Total Return(2) 4.67% 9.44%
Value of $10,000 Investment(3) $10,467 $11,368
</TABLE>
1. CUMULATIVE TOTAL RETURN REPRESENTS THE CHANGE IN VALUE OF AN INVESTMENT OVER
THE INDICATED PERIODS AND DOES NOT INCLUDE SALES CHARGES.
2. AVERAGE ANNUAL TOTAL RETURN REPRESENTS THE AVERAGE ANNUAL CHANGE IN VALUE OF
AN INVESTMENT OVER THE INDICATED PERIODS AND INCLUDES THE 1.00% INITIAL SALES
CHARGE AND 1.00% CONTINGENT DEFERRED SALES CHARGE, APPLICABLE TO SHARES REDEEMED
WITHIN THE FIRST 18 MONTHS OF INVESTMENT.
3. THESE FIGURES REPRESENT THE VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE FUND OVER THE INDICATED PERIODS AND INCLUDE ALL SALES CHARGES.
ALL TOTAL RETURN CALCULATIONS ASSUME REINVESTMENT OF DIVIDEND AND CAPITAL GAINS
DISTRIBUTIONS WHEN PAID. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE
WITH MARKET CONDITIONS, CURRENCIES AND THE ECONOMIC, SOCIAL, AND POLITICAL
CLIMATES OF THE 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.
6
<PAGE> 7
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Highlights
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE -- CLASS I
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
SIX MONTHS MARCH 14, 1994
ENDED YEAR ENDED MARCH 31 (COMMENCEMENT
SEPTEMBER 30, 1996 -------------------- OF OPERATIONS) TO
(UNAUDITED) 1996 1995 MARCH 31, 1994
------------------ ------- ------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.04 $ 9.43 $ 10.01 $10.00
------- ------- ------- ------
Income from investment operations:
Net investment income .09 .04 .07 .009
Net realized and unrealized gain (loss) .68 1.03 (.61) .001
------- ------- ------- ------
Total from investment operations .77 1.07 (.54) .01
------- ------- ------- ------
Distributions:
Dividends from net investment income (.02) (.05) (.04) --
Distributions from net realized gains (.05) (.41) -- --
------- ------- ------- ------
Total distributions (.07) (.46) (.04) --
------- ------- ------- ------
Change in net asset value .70 .61 (.58) .01
------- ------- ------- ------
Net asset value, end of period $ 10.74 $ 10.04 $ 9.43 $10.01
======= ======= ======= ======
TOTAL RETURN* 7.62% 11.79% (5.41)% .10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $23,754 $21,590 $18,717 $ 101
Ratio of expenses to average net assets 2.10%** 2.37% 3.25% 32.02%**
Ratio of expenses, net of reimbursement, to
average net assets 2.10%** 2.32% 1.25% 1.25%**
Ratio of net investment income to average
net assets 1.69%** .40% 1.38% 1.89%**
Portfolio turnover rate 14.33% 38.22% 3.21% --
Average commission rate paid (per share) $ .0083 $ .0083
</TABLE>
* TOTAL RETURN DOES NOT REFLECT SALES COMMISSIONS. NOT ANNUALIZED FOR
PERIODS OF LESS THAN ONE YEAR.
** ANNUALIZED.
7
<PAGE> 8
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Highlights (cont.)
- --------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE -- CLASS II
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
SIX MONTHS FOR THE PERIOD
ENDED MAY 1, 1995+
SEPTEMBER 30, 1996 THROUGH
(UNAUDITED) MARCH 31, 1996
------------------ --------------
<S> <C> <C>
Net asset value, beginning of period $ 9.99 $ 9.73
------- -------
Income from investment operations:
Net investment income (loss) .06 (.02)
Net realized and unrealized gain .68 .73
------- -------
Total from investment operations .74 .71
------- -------
Distributions:
Dividends from net investment income (.01) (.04)
Distributions from net realized gains (.05) (.41)
------- -------
Total distributions (.06) (.45)
------- -------
Change in net asset value .68 .26
------- -------
Net asset value, end of period $ 10.67 $ 9.99
======= =======
TOTAL RETURN* 7.38% 7.66%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000) $ 1,926 $ 1,379
Ratio of expenses to average net assets 2.74%** 2.97%**
Ratio of net investment income (loss) to average net assets .96%** (.88)%**
Portfolio turnover rate 14.33% 38.22%
Average commission rate paid (per share) $ .0083 $ .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> 9
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Investment Portfolio, September 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: 91.5%
- ---------------------------------------------------------------------------------------------------------------------
APPLIANCES & HOUSEHOLD DURABLES: 0.6%
Hualing Holdings Ltd. H.K. 1,678,000 $ 154,064
- ---------------------------------------------------------------------------------------------------------------------
AUTOMOBILES: 1.4%
Weifu Fuel Injection Co. Ltd. Chn. 800,000 349,670
- ---------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS & COMPONENTS: 5.3%
Anglian Group PLC U.K. 40,000 131,177
* Cementos Paz del Rio SA, ADR, 144A Col. 11,600 142,100
Masco Corp. U.S. 3,000 90,000
Parbury Ltd. Aus. 803,000 413,151
Svedala Industri, A Swe. 28,500 494,542
Unione Cementi Marchino Emiliane (Unicem), di Risp Itl. 31,000 81,425
-----------
1,352,395
- ---------------------------------------------------------------------------------------------------------------------
BUSINESS & PUBLIC SERVICES: 1.3%
Wheelabrator Technologies Inc. U.S. 21,200 323,300
- ---------------------------------------------------------------------------------------------------------------------
CHEMICALS: 0.4%
European Vinyls Corp. EVC International NV Neth. 2,865 91,879
- ---------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & HOUSING: 2.7%
Dragados y Construcciones SA Sp. 18,900 243,534
European Techniki Gr. 25,500 95,424
Kaufman & Broad Home Corp. U.S. 13,400 174,200
Sociedade Construcoes Soares da Costa SA Port. 14,200 109,576
* U.S. Home Corp. U.S. 3,400 69,700
-----------
692,434
- ---------------------------------------------------------------------------------------------------------------------
DATA PROCESSING & REPRODUCTION: 6.0%
* 3com Corp. U.S. 8,000 480,500
* Bay Networks Inc. U.S. 11,500 313,375
* Newbridge Networks Corp. Can. 7,200 459,000
* Optical Data Systems Inc. U.S. 16,250 276,250
-----------
1,529,125
- ---------------------------------------------------------------------------------------------------------------------
ELECTRICAL & ELECTRONICS: 9.5%
ABB AG, br. Swtz. 348 425,364
Alcatel Alsthom SA Fr. 8,200 691,116
* Antec Corp. U.S. 8,750 127,969
Dongfang Electrical Machinery Co. Ltd., H Chn. 1,208,000 312,427
* DSC Communications Corp. U.S. 8,050 201,250
</TABLE>
9
<PAGE> 10
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Investment Portfolio, September 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ---------------------------------------------------------------------------------------------------------------------
ELECTRICAL & ELECTRONICS (cont.)
Gold Peak Industries (Holdings) Ltd. H.K. 352,000 $ 217,354
Motorola Inc. U.S. 9,200 474,950
-----------
2,450,430
- ---------------------------------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS & INSTRUMENTS: 2.4%
Allgon AB, B free Swe. 10,100 160,019
BICC U.K. 44,300 204,569
* BICC, rights U.K. 8,054 2,395
Draka Holding NV Neth. 7,000 241,252
-----------
608,235
- ---------------------------------------------------------------------------------------------------------------------
ENERGY SOURCES: 0.8%
* Hub Power Co. Ltd., GDR, 144A Pkr. 9,750 202,313
- ---------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES: 1.2%
* Fritz Cos. U.S. 21,700 314,650
- ---------------------------------------------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER: 3.2%
Munksjo AB Swe. 39,000 341,313
PT Inti Indorayon Utama, fgn. Indo. 235,000 204,854
Weyerhaeuser Co. U.S. 6,000 276,750
-----------
822,917
- ---------------------------------------------------------------------------------------------------------------------
INDUSTRIAL COMPONENTS: 3.6%
BW/IP Inc. U.S. 16,900 261,950
Madeco Manufacturera de Cobre SA, ADR Chil. 14,600 337,625
* Shaw Group Inc. U.S. 9,400 326,650
-----------
926,225
- ---------------------------------------------------------------------------------------------------------------------
MACHINERY & ENGINEERING: 4.6%
* Gradall Industries Inc. U.S. 52,500 590,625
SNC-Lavalin Group Inc., A Can. 31,800 250,982
VA Technologie AG, br., 144A Aut. 2,680 349,298
-----------
1,190,905
- ---------------------------------------------------------------------------------------------------------------------
MERCHANDISING: 1.3%
Det Danske Traelastkompagni AS Den. 4,300 333,948
- ---------------------------------------------------------------------------------------------------------------------
METALS & MINING: 4.4%
Kang Won Industrial Co. Ltd. Kor. 11,000 153,148
Maanshan Iron & Steel Co. Ltd., H Chn. 1,660,000 304,823
Oregon Steel Mills Inc. U.S. 27,100 416,663
Pohang Iron & Steel Co. Ltd. Kor. 3,400 243,943
-----------
1,118,577
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 11
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Investment Portfolio, September 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ---------------------------------------------------------------------------------------------------------------------
MULTI-INDUSTRY: 5.3%
La Cemento Nacional CA, GDR Ecu. 400 $ 75,200
La Cemento Nacional CA, GDR, 144A Ecu. 1,400 263,200
Metra OY, B Fin. 10,300 590,348
Nokia AB, A Fin. 9,450 422,761
-----------
1,351,509
- ---------------------------------------------------------------------------------------------------------------------
REAL ESTATE: 2.5%
* MDX Public Co. Ltd., fgn. Thai. 127,000 167,296
New World Development Co. Ltd. H.K. 44,000 231,010
Taylor Woodrow PLC U.K. 97,300 243,696
-----------
642,002
- ---------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS: 16.1%
AT&T Corp. U.S. 6,250 326,563
BCE Inc. Can. 5,900 252,225
Chengdu Telecommunications Cable Co. Ltd., H Chn. 1,075,000 109,822
Cpt-Telefonica del Peru SA, B Per. 115,000 259,781
Koninklijke PTT Nederland Neth. 8,600 295,893
Lucent Technologies Inc. U.S. 3,100 142,213
MCI Communications Corp. U.S. 10,000 256,250
* Millicom International Cellular SA Lux. 11,100 448,163
* Pakistan Telecommunications Corp. Pkr. 1,890 165,375
Philippine Long Distance Telephone Co., ADR Phil. 4,400 275,000
* SPT Telecom AS Csk. 2,250 277,618
STET (Sta Finanziaria Telefonica Torino) SPA, di
Risp Itl. 94,000 253,814
Telecom Italia Spa Itl. 60,000 133,333
Telecom Italia Spa, di Risp Itl. 61,000 112,289
Tele Danmark AS, ADR Den. 11,660 275,468
Tele Danmark AS, B Den. 2,290 108,662
Telefonica de Espana SA Sp. 20,900 388,092
Telefonos de Mexico SA, L, ADR Mex. 2,010 64,571
-----------
4,145,132
- ---------------------------------------------------------------------------------------------------------------------
TRANSPORTATION: 3.4%
* Guangshen Railway Co. Ltd., ADR Chn. 20,750 394,250
IMC Holdings Ltd. H.K. 140,000 78,753
Qantas Airways Ltd., ADR, 144A Aus. 19,300 284,675
Stena Line AB, B free Swe. 8,400 38,785
* Tranz Rail Holdings Ltd., ADR N.Z. 5,133 74,429
-----------
870,892
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 12
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Investment Portfolio, September 30, 1996 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- ------------------------------------------------------------------------------------------------------------------------
UTILITIES-ELECTRICAL & GAS: 15.7%
Australian Gas & Light Company Aus. 70,600 $ 380,009
British Gas PLC U.K. 175,000 546,507
Central Costanera SA, ADR, 144A Arg. 9,850 312,738
* CEZ Csk. 9,600 373,492
Compania Boliviana de Energia Electricas SA Bol. 5,300 236,513
Guangdong Electric Power Development Co Ltd, B,
144A Chn. 680,000 474,848
Iberdrola SA Sp. 39,600 383,852
* Kohinoor Energy Ltd. Pkr. 710,000 302,778
National Power PLC U.K. 38,400 236,532
Powergen PLC U.K. 1,700 12,906
Shandong Huaneng Power Chn. 49,400 444,600
Texas Utilities Electric Co. U.S. 8,000 317,000
-----------
4,021,775
-----------
TOTAL COMMON STOCKS (cost $22,387,066) 23,492,377
- ------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS: 5.2%
- ------------------------------------------------------------------------------------------------------------------------
Ballast Nedam NV, ctf., conv., pfd. Neth. 3,400 164,052
Cia de Inversiones en Telecomunicaciones SA,
7.00%, conv., pfd. Arg. 8,300 429,525
Concessioni e Costruzioni Autostrade SPA, B, pfd. Itl. 180,000 306,647
Telebras-Telecomunicacoes Brasileiras SA, pfd., ADR Braz. 5,705 447,843
-----------
TOTAL PREFERRED STOCKS (cost $1,029,575) 1,348,067
- ------------------------------------------------------------------------------------------------------------------------
PRINCIPAL IN
LOCAL CURRENCY**
- ------------------------------------------------------------------------------------------------------------------------
SHORT TERM OBLIGATIONS: 4.2% (cost $1,075,734)
- ------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bills, 4.90% to 5.14% with
maturities to 12/12/96 U.S. 1,084,000 1,076,000
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 100.9% (cost $24,492,375) 25,916,444
OTHER ASSETS, LESS LIABILITIES: (0.9)% (236,383)
-----------
TOTAL NET ASSETS: 100.0% $25,680,061
===========
</TABLE>
* NON-INCOME PRODUCING.
** CURRENCY OF COUNTRY INDICATED.
See Notes to Financial Statements.
12
<PAGE> 13
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Statements
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1996 (unaudited)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value
(identified cost $24,492,375) $25,916,444
Cash 677
Receivables:
Fund shares sold 100,011
Dividends 47,597
Unamortized organization costs 37,929
-----------
Total assets 26,102,658
-----------
Liabilities:
Payables for fund shares redeemed 333,202
Accrued expenses 89,395
-----------
Total liabilities 422,597
-----------
Net assets, at value $25,680,061
===========
Net assets consist of:
Undistributed net investment income $ 195,292
Net unrealized appreciation 1,424,069
Distributions in excess of net realized
gain (99,562)
Net capital paid in on shares of
beneficial interest 24,160,262
-----------
Net assets, at value $25,680,061
===========
Class I
Net asset value per share
($23,754,127 / 2,211,388
shares outstanding) $ 10.74
===========
Maximum offering price
($10.74 / 94.25%) $ 11.40
===========
Class II
Net asset value per share
($1,925,934 / 180,541
shares outstanding) $ 10.67
===========
Maximum offering price
($10.67 / 99.00%) $ 10.78
===========
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended
September 30, 1996 (unaudited)
<TABLE>
<S> <C> <C>
Investment income:
(net of $46,632 foreign
taxes withheld)
Dividends $ 421,045
Interest 55,897
----------
Total income $ 476,942
Expenses:
Management fees (Note 3) 94,719
Administrative fees (Note 3) 18,933
Distribution fees (Note 3)
Class I 40,666
Class II 8,544
Transfer agent fees (Note 3) 36,000
Custodian fees 9,676
Reports to shareholders 15,900
Audit fees 10,000
Legal fees 10,000
Registration and filing fees 15,000
Trustee's fees and expenses 3,500
Amortization of
organization costs 7,071
----------
Total expenses 270,009
----------
Net investment income 206,933
Realized and unrealized gain
(loss):
Net realized loss on:
Investments (85,065)
Foreign currency
transactions (5,446)
----------
(90,511)
Net unrealized appreciation
on investments 1,671,542
----------
Net realized and
unrealized gain 1,581,031
----------
Net increase in net assets
resulting from operations $1,787,964
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 14
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Statements (cont.)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
SEPTEMBER 30, 1996 ENDED
(UNAUDITED) MARCH 31, 1996
------------------ --------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 206,933 $ 76,573
Net realized gain (loss) on investment and foreign currency transactions (90,511) 1,004,586
Net unrealized appreciation 1,671,542 1,135,543
----------- -----------
Net increase in net assets resulting from operations 1,787,964 2,216,702
Distributions to shareholders:
From net investment income
Class I (33,090) (98,398)
Class II (1,160) (1,342)
From net realized gain
Class I (111,693) (809,303)
Class II (7,835) (38,252)
Fund share transactions (Note 2)
Class I 629,803 1,578,477
Class II 446,361 1,405,300
----------- -----------
Net increase in net assets 2,710,350 4,253,184
Net assets:
Beginning of period 22,969,711 18,716,527
----------- -----------
End of period $25,680,061 $22,969,711
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 15
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. SUMMARY OF ACCOUNTING POLICIES
Templeton Global Infrastructure Fund (the Fund) is a separate diversified series
of Templeton Global Investment Trust (the Trust), a Delaware business trust,
which is an open-end management investment company registered under the
Investment 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
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 currencies
are translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells foreign securities it customarily
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
foreign currencies, currency gains or losses realized between the trade and
settlement 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
securities is recorded as soon as information is available to the Fund. Interest
income and estimated expenses are accrued daily. Distributions to shareholders,
which are determined in accordance with income tax regulations, are recorded on
the ex-dividend date.
15
<PAGE> 16
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
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.
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 initial
sales load, a contingent deferred sales charge on Class II shares, distribution
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 September
30, 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
---------------------------------------------
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31, 1996
--------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Shares sold 623,085 $ 6,550,993 953,832 $ 9,604,915
Shares issued on reinvestment of distributions 12,512 134,187 88,903 830,045
Shares redeemed (574,663) (6,055,377) (876,366) (8,856,483)
-------- ----------- -------- -----------
Net increase 60,934 $ 629,803 166,369 $ 1,578,477
======== =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
CLASS II
---------------------------------------------
FOR THE PERIOD
MAY 1, 1995
SIX MONTHS ENDED THROUGH
SEPTEMBER 30, 1996 MARCH 31, 1996
--------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Shares sold 49,463 $ 518,979 149,668 $ 1,523,870
Shares issued on reinvestment of distributions 819 8,768 4,179 38,680
Shares redeemed (7,775) (81,386) (15,813) (157,250)
-------- ----------- -------- -----------
Net increase 42,507 $ 446,361 138,034 $ 1,405,300
======== =========== ======== ===========
</TABLE>
Templeton Global Investors, Inc., the Fund's administrative manager, is the
record owner of 105,969 Class I shares and 11 Class II shares as of September
30, 1996.
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton
Investment Counsel, Inc. (TICI), Templeton Global Investors, Inc. (TGII),
Franklin Templeton Distributors, Inc. (FTD), and Franklin Templeton Investor
Services, Inc. (FTIS), the Fund's investment manager, administrative manager,
principal underwriter, and transfer agent, respectively.
The Fund pays monthly an investment management fee to 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
16
<PAGE> 17
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Notes to Financial Statements (unaudited) (cont.)
- --------------------------------------------------------------------------------
the six months ended September 30, 1996 is set forth in the Statement of
Operations. For the six months ended September 30, 1996, FTD received net
commissions of $14,877 from the sale of the Fund's shares and FTIS received fees
of $36,000.
Under the distribution plans for Class I and Class II shares, the Fund
reimburses FTD quarterly for FTD's costs and expenses in connection with any
activity 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 September 30, 1996, unreimbursed expenses amounted to $1,289,254.
Class II shares redeemed within 18 months are subject to a contingent deferred
sales charge. Contingent deferred sales charges of $313 were paid to FTD for the
six months ended September 30, 1996.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel for
the Fund, which firm received fees of $10,000 for the six months ended September
30, 1996.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the six
months ended September 30, 1996 aggregated $4,841,286 and $3,309,798,
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 September 30, 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 $ 3,787,839
Unrealized depreciation (2,363,770)
-----------
Net unrealized depreciation $(1,424,069)
===========
</TABLE>
17
<PAGE> 18
NOTES
<PAGE> 19
LITERATURE REQUEST
- --------------------------------------------------------------------------------
For a free brochure and prospectus, which contain more complete information,
including charges and expenses, call Franklin Fund Information, toll free, at
1-800/DIAL BEN (1-800/342-5236). Please read the prospectus carefully before you
invest or send money. 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.
FRANKLIN TEMPLETON GROUP
GLOBAL GROWTH
Franklin Global Health
Care Fund
Franklin Templeton
Japan Fund
Templeton Developing
Markets Trust
Templeton Foreign Fund
Templeton Foreign Smaller
Companies Fund
Templeton Global
Infrastructure Fund
Templeton Global
Opportunities Trust
Templeton Global
Real Estate Fund
Templeton Global Smaller
Companies Fund
Templeton Greater
European Fund
Templeton Growth Fund
Templeton Latin America
Fund
Templeton Pacific
Growth Fund
Templeton World Fund
GLOBAL GROWTH AND INCOME
Franklin Global Utilities Fund
Franklin Templeton German
Government Bond Fund
Franklin Templeton
Global Currency Fund
Mutual European Fund
Templeton Global Bond Fund
Templeton Growth and
Income Fund
GLOBAL INCOME
Franklin Global Government
Income Fund
Franklin Templeton Hard
Currency Fund
Franklin Templeton High
Income Currency Fund
Templeton Americas
Government Securities Fund
GROWTH
Franklin Blue Chip Fund
Franklin California Growth Fund
Franklin DynaTech Fund
Franklin Equity Fund
Franklin Gold Fund
Franklin Growth Fund
Franklin MidCap Growth Fund
Franklin Small Cap Growth Fund
Mutual Discovery Fund
GROWTH AND INCOME
Franklin Asset Allocation Fund
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Investment Fund
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Securities Fund
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Franklin Real Estate
Securities Fund
Franklin Rising Dividends Fund
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Franklin Utilities Fund
Franklin Value Fund
Mutual Beacon Fund
Mutual Qualified Fund
Mutual Shares Fund
Templeton American Trust, Inc.
INCOME
Franklin Adjustable Rate
Securities Fund
Franklin Adjustable U.S.
Government Securities Fund
Franklin's AGE High
Income Fund
Franklin Investment Grade
Income Fund
Franklin Short-Intermediate U.S.
Government Securities Fund
Franklin U.S. Government
Securites Fund
Franklin Money Fund
Franklin Federal Money Fund
FOR NON-U.S. INVESTORS:
Franklin Tax-Advantaged
High Yield Securities Fund
Franklin Tax-Advantaged
International Bond Fund
Franklin Tax-Advantaged U.S.
Government Securities Fund
FOR CORPORATIONS:
Franklin Corporate Qualified
Dividend Fund
FRANKLIN FUNDS SEEKING
TAX-FREE INCOME
Federal Intermediate-Term
Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free
Income Fund
Insured Tax-Free Income Fund
Puerto Rico Tax-Free
Income Fund
Tax-Exempt Money Fund
FRANKLIN STATE-SPECIFIC
FUNDS SEEKING
TAX-FREE INCOME
Alabama
Arizona*
Arkansas**
California*
Colorado
Connecticut
Florida*
Georgia
Hawaii**
Indiana
Kentucky
Louisiana
Maryland
Massachusetts***
Michigan*
Minnesota***
Missouri
New Jersey
New York*
North Carolina
Ohio***
Oregon
Pennsylvania
Tennessee**
Texas
Virginia
Washington**
VARIABLE ANNUITIES
Franklin Valuemark(R)
Franklin Templeton
Valuemark Income Plus
(an immediate annuity)
*Two or more fund options available: long-term portfolio, intermediate-term
portfolio, a portfolio of insured municipal securities, and/or a high yield
portfolio (CA) and a money market portfolio (CA and NY).
**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. 11/96.1
<PAGE> 20
[Background picture of Globe]
Templeton Global
Infrastructure Fund, Inc.
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 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 the risk of such losses 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.
[Recycle Symbol]
TEMPLETON
GLOBAL
INFRASTRUCTURE
FUND
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1996
[Franklin Templeton Logo]
