SEMI ANNUAL REPORT
[COVER PHOTO]
SEPTEMBER 30, 1997
TEMPLETON GREATER EUROPEAN FUND
[LOGO] FRANKLIN TEMPLETON
<PAGE>
[FRANKLIN TEMPLETON CELEBRATING OVER 50 YEARS LOGO]
CELEBRATING 50 YEARS
This year marks 50 years of business for Franklin Templeton. Over these years,
we have experienced profound changes in technology, regulations and customer
expectations within the mutual fund industry. As one of the largest mutual fund
families, we're proud to be an innovative industry leader, providing people like
you with an opportunity to invest in companies and governments around the globe.
In addition, we want to stress that all securities markets move both up and
down. Mixed in with the good years can be some bad years. Accordingly, mutual
fund share prices also move up and down. Every investor should expect such
fluctuations, which can be wide. When markets are going down, as well as up, we
encourage investors to maintain a long-term perspective. We thank you for your
past support and look forward to serving your investment needs in the years
ahead.
[PHOTO]
MARK HOLOWESKO, CFA
President
Templeton Global Investment Trust
<PAGE>
SHAREHOLDER LETTER
Your Fund's Objective: The Templeton Greater European Fund seeks to achieve
long-term capital appreciation by investing primarily in equity securities of
companies in Greater Europe (Western, Central and Eastern Europe and Russia).
Dear Shareholder:
We are pleased to bring you the semi-annual report of the Templeton Greater
European Fund for the six months ended September 30, 1997. During the period
under review, Europe's economic expansion continued to strengthen, as many of
the region's countries experienced growth in sales and foreign exports. Like
U.S. companies in the 1980s, European corporations experienced significant
merger and acquisition activity, which often accompanies rising shareholder
value. Privatization, restructuring, and cost reduction also helped many of
these firms generate healthy earnings. All of these factors contributed to the
advance of many Western European stock markets, and Spain's market rose 29.9%,
the United Kingdom's 22.7%, and Sweden's 21.7% during the six-month period.(1)
In Eastern Europe, although the Polish market declined, many Russian share
prices continued their upward climb. Within this environment, the Fund's Class I
shares delivered a six-month cumulative total return of 14.09%, as shown in the
Performance Summary on page 5.
1. Source: Bloomberg. Price appreciation is measured in U.S. dollars, and
includes reinvested dividends.
CONTENTS
Shareholder Letter ..... 1
Performance Summaries
Class I ............. 5
Class II ............ 7
Advisor Class ....... 9
Financial Highlights and
Statement of Investments 11
Financial Statements ... 18
Notes to the Financial
Statements ............. 21
FUND CATEGORY [GRAPH] PYRAMID
<PAGE>
GEOGRAPHIC DISTRIBUTION
Based on Total Net Assets
9/30/97
United Kingdom 24.8%
France 10.0%
Sweden 7.5%
Spain 6.0%
Italy 4.9%
Finland 4.7%
Germany 4.7%
Netherlands 3.3%
Other Countries 9.5%
Fixed-Income Securities 0.3%
Short-Term Obligations &
Other Net Assets 24.3%
During the reporting period, the Fund profited from the performance of most of
its banking holdings, which increased in value as a result of lower interest
rates and improving business conditions. The Fund also benefited from the
appreciable gain in share prices of Philips Electronics NV(2), the Dutch
electronics manufacturer; Nokia AB, a Finnish telecommunications company; and
Assidomaen AB, a Swedish paper and forest products company.
On September 30, 1997, the United Kingdom was our largest geographic exposure.
More than most of its continental counterparts, the U.K. has swallowed the tough
medicine of reforming its labor markets, deregulating its financial market, and
privatizing state-owned enterprises. Despite this progress, stock valuation
levels seemed reasonable, and we established positions in Imperial Chemical
Industries Plc., a large company that was undergoing major restructuring;
Inchcape Plc., an international services and marketing group; and Tate & Lyle
Plc., a major supplier of sugar in the U.K.
We also found stocks meeting our bargain criteria in other parts of Europe. In
Italy, we initiated positions in Cartiere Burgo SpA, a paper products producer,
and Fila Holding SpA, a leading international sportswear manufacturer. And in
Norway, we purchased shares of Norsk Hydro AS, the country's largest industrial
group.
On the sell side, we realized substantial gains by liquidating our holdings in
Merita Ltd., one of Finland's largest banks. We also profited by eliminating our
position in Cristaleria Espanola SA, the Spanish glass producer for the motor
vehicle industry, after its share price rose.
2. A complete listing of all stocks in the portfolio as of September 30, 1997
begins on page 14.
2
<PAGE>
Looking forward, we believe that Europe will remain a fertile ground for
unearthing undervalued companies. Many European financial groups have adopted
international accounting standards, and some Finnish and German corporations are
fighting to overturn laws that make it illegal to buy back shares. Because many
European countries are trying to meet requirements for European Monetary Union
membership, the privatization process appears to have accelerated. Consequently,
a spate of telecommunication companies, electricity providers, and other state
assets have been put up for sale throughout Europe. In our opinion, global
investors may benefit if government interference decreases and domestic
participation in equity markets increases.
This discussion reflects the strategies we employed for the Fund during the six
months under review, and includes our opinions as of the close of the period.
Because economic and market conditions are constantly changing, our strategies,
and our evaluations, conclusions and decisions regarding portfolio holdings may
change as new circumstances arise. All figures shown are as of September 30,
1997, and the Fund's holdings can be expected to change with market developments
and management of the portfolio. 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.
Please remember that investing in markets concentrated in a single region
involves special considerations which include risks related to market and
currency volatility and adverse economic, social and political developments in
the region and countries where investments are made. Emerging markets involve
heightened risks related to the same factors, in addition to risks
TOP 10 HOLDINGS
9/30/97
<TABLE>
<CAPTION>
COMPANY, % OF TOTAL
INDUSTRY, COUNTRY NET ASSETS
- -----------------------------------------
<S> <C>
Philips Electronics NV
Electronics, Netherlands 3.0%
Nokia AB, A
Telecommunications, Finland 2.0%
Volkswagen AG, pfd.
Automobiles, Germany 1.9%
Telecom Italia SpA, di risp
Telecommunications, Italy 1.8%
Deutsche Bank AG
Banking, Germany 1.7%
National Westminster Bank Plc.
Banking, United Kingdom 1.7%
Assidomaen AB
Forest Products & Paper,
Sweden 1.6%
Enso OY
Forest Products & Paper,
Finland 1.5%
Fiat SpA, pfd.
Automobiles, Italy 1.5%
British Telecommunications Plc.
Telecommunications,
United Kingdom 1.5%
</TABLE>
For a complete list of portfolio holdings, please see page 14 of this report.
3
<PAGE>
<TABLE>
<CAPTION>
TOP 10 INDUSTRIES
9/30/97
% OF TOTAL
INDUSTRY NET ASSETS
- ------------------------------------
<S> <C>
Banking 9.9%
Automobiles 7.3%
Telecommunications 6.7%
Forest Products & Paper 6.6%
Utilities Electrical & Gas 6.2%
Energy Sources 5.6%
Industrial Components 4.4%
Electrical & Electronics 4.0%
Building Materials &
Components 2.5%
Chemicals 2.4%
</TABLE>
associated with 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 not normally associated with other markets. These risks and other
considerations are discussed in the Fund's prospectus.
We thank you for your continued investment in the Templeton Greater European
Fund, and would like to reaffirm our dedication and commitment to searching
Greater Europe for the best possible securities for the Fund's portfolio.
Sincerely,
/s/ Mark Holowesko
- -----------------------------------
Mark Holowesko, CFA
President
Templeton Global Investment Trust
Portfolio Manager
Templeton Greater European Fund
/s/ Jeffrey A. Everett
- -----------------------------------
Jeffrey A. Everett, CFA
Portfolio Manager
Templeton Greater European Fund
/s/ Richard Sean Farrington
- -----------------------------------
Richard Sean Farrington, CFA
Portfolio Manager
Templeton Greater European Fund
4
<PAGE>
PERFORMANCE SUMMARY
CLASS I
Templeton Greater European Fund - Class I produced a cumulative total return of
14.09% for the six-month period ended September 30, 1997. Cumulative total
return measures the change in value of an investment, assuming reinvestment of
dividends and capital gains, and does not include the initial sales charge.
The price of the Fund's shares increased $1.32, from $12.35 on March 31, 1997,
to $13.67 on September 30, 1997. During this time, shareholders received
distributions totaling 6.5 cents ($0.065) in dividend income, 13.5 cents
($0.135) per share in short-term capital gains and 18 cents ($0.18) per share in
long-term capital gains. Distributions will vary depending on income earned by
the Fund and any profits realized from the sale of securities in the portfolio,
as well as the level of the Fund's operating expenses.
Past performance is not predictive of future results.
5
<PAGE>
CLASS I
Periods ended 9/30/97
<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR (5/8/95)
-------- ----------
<S> <C> <C>
Cumulative Total Return(1) 30.18% 44.26%
Average Annual Total Return(2) 22.70% 13.66%
Value of $10,000 Investment(3) $12,270 $13,597
9/30/96 9/30/97
------- -------
One-Year Total Return(4) 12.16% 30.18%
</TABLE>
1. Cumulative total return represents the change in value of an investment
over the indicated periods and does not include the 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%
initial 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.
4. One-year total return represents the change in value of an investment over
the one-year periods ended on the dates indicated and does not include the sales
charge.
All calculations assume reinvestment of dividends and capital gains at net asset
value. Investment return and principal value will fluctuate with market
conditions, currency volatility and the social, economic and political climates
of countries where investments are made. Emerging 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. You may have a gain
or loss when you sell your shares.
The Fund's Investment Manager and Fund Administrator have agreed in advance to
waive a portion of their respective fees and, in the case of the Fund
Administrator, to make certain payments to reduce expenses, which increases
total return to shareholders. If they had not taken this action, total returns
would have been lower. After August 1, 1998, the fee waiver and expense
reimbursements may be discontinued at any time upon notice to the Fund's Board
of Trustees.
Past performance is not predictive of future results.
6
<PAGE>
CLASS II
Templeton Greater European Fund - Class II provided a cumulative total return of
13.68% for the six-month period ended September 30, 1997. Cumulative total
return measures the change in value of an investment, assuming reinvestment of
dividends and capital gains, and does not include sales charges.
The price of the Fund's shares increased $1.28, from $12.27 on March 31, 1997,
to $13.55 on September 30, 1997. During this time, shareholders received
distributions totaling 4.6 cents ($0.046) in dividend income, 13.5 cents
($0.135) per share in short-term capital gains, and 18 cents ($0.18) per share
in long-term capital gains. Distributions will vary depending on income earned
by the Fund and any profits realized from the sale of securities in the
portfolio, as well as the level of the Fund's operating expenses.
Past performance is not predictive of future results.
7
<PAGE>
<TABLE>
<CAPTION>
CLASS II
Periods ended 9/30/97
SINCE
INCEPTION
1-YEAR (5/8/95)
- -----------------------------------------------------------------
<S> <C> <C>
Cumulative Total Return(1) 29.39% 41.76%
Average Annual Total Return(2) 27.12% 15.17%
Value of $10,000 Investment(3) $12,712 $14,034
9/30/96 9/30/97
- ----------------------------------------------------------------
One-Year Total Return(4) 11.11% 29.39%
</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 periods indicated. It includes the 1.0% initial sales
charge and the 1.0% contingent deferred sales charge applicable to shares
redeemed within 18 months of investment.
3. These figures represent the value of a hypothetical $10,000 investment in
the Fund over the periods indicated and include all sales charges.
4. One-year total return represents the change in value of an investment over
the one-year periods ended on the dates indicated and does not include the sales
charge.
All calculations assume reinvestment of dividends and capital gains at net asset
value. Investment return and principal value will fluctuate with market
conditions, currency volatility and the social, economic and political climates
of countries where investments are made. Emerging 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. You may have a gain
or loss when you sell your shares.
The Fund's Investment Manager and Fund Administrator have agreed in advance to
waive a portion of their respective fees and, in the case of the Fund
Administrator, to make certain payments to reduce expenses, which increases
total return to shareholders. If they had not taken this action, total returns
would have been lower. After August 1, 1998, the fee waiver and expense
reimbursements may be discontinued at any time upon notice to the Fund's Board
of Trustees.
Past performance is not predictive of future results.
8
<PAGE>
ADVISOR CLASS
Templeton Greater European Fund - Advisor Class
produced a cumulative total return of 14.41% for the six-month period ended
September 30, 1997. The price of the Fund's shares increased $1.35, from $12.36
to $13.71, over the same period.
Past performance is not predictive of future results.
9
<PAGE>
<TABLE>
<CAPTION>
ADVISOR CLASS
Periods ended 9/30/97
SINCE
INCEPTION
OF THE FUND
1-YEAR (5/8/95)
- -----------------------------------------------------------------
<S> <C> <C>
Cumulative Total Return(1) 30.65% 44.79%
Average Annual Total Return(1) 30.65% 16.67%
Value of $10,000 Investment(2) $13,065 $14,479
9/30/96 9/30/97
- ----------------------------------------------------------------
One-Year Total Return(3) 12.16% 30.65%
</TABLE>
Effective January 2, 1997, the Fund began offering Advisor Class shares to
certain eligible investors, as described in its prospectus. This share class
does not have sales charges or Rule 12b-1 plans. Performance quotations have
been calculated as follows: (a) For periods prior to January 2, 1997, figures
reflect the Fund's Class I performance, excluding the effect of the Class I
maximum initial sales charge, but including the effect of Class I expenses,
including Rule 12b-1 fees; and (b) for periods after January 1, 1997, figures
reflect actual Advisor Class performance, including the deduction of all charges
and fees applicable only to that class. Since January 2, 1997 (commencement of
sales), the cumulative total return of Advisor Class shares was 22.33%.
1. Cumulative total return represents the change in value of an investment
over the periods indicated. Average annual total return represents the average
annual change in value of an investment over the indicated periods.
2. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated.
3. One-year total return represents the change in value of an investment over
the one-year periods ended on the dates indicated.
All calculations assume reinvestment of dividends and capital gains at net asset
value. Investment return and principal value will fluctuate with market
conditions, currency volatility and the social, economic and political climates
of countries where investments are made. Emerging 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. You may have a gain
or loss when you sell your shares.
The Fund's Investment Manager and Fund Administrator have agreed in advance to
waive a portion of their respective fees and, in the case of the Fund
Administrator, to make certain payments to reduce expenses, which increases
total return to shareholders. If they had not taken this action, total returns
would have been lower. After August 1, 1998, the fee waiver and expense
reimbursements may be discontinued at any time upon notice to the Fund's Board
of Trustees.
Past performance is not predictive of future results.
10
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Financial Highlights
<TABLE>
<CAPTION>
CLASS I
---------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1997 ------------------
(UNAUDITED) 1997 1996+
---------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period.............................. $12.35 $10.39 $10.00
---------------------------------------
Income from investment operations:
Net investment income............................................ .15 .14 .08
Net realized and unrealized gains................................ 1.55 2.09 .31
---------------------------------------
Total from investment operations.................................. 1.70 2.23 .39
---------------------------------------
Less distributions:
Dividends from net investment income............................. (.07) (.13) --
Distributions from net realized gains............................ (.31) (.14) --
---------------------------------------
Total distributions............................................... (.38) (.27) --
---------------------------------------
Net asset value, end of period.................................... $13.67 $12.35 $10.39
---------------------------------------
Total return*..................................................... 14.09% 21.70% 3.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)................................. $ 12,683 $9,268 $4,308
Ratios to average net assets:
Expenses......................................................... 2.35%** 2.63% 3.56%**
Expenses, including waiver....................................... 1.85%** 1.85% 1.85%**
Net investment income............................................ 2.58%** 1.72% 1.39%**
Portfolio turnover rate........................................... 21.20% 30.58% 9.86%
Average commission rate paid***................................... $.0204 $.0264 $.0205
</TABLE>
*Total return does not reflect sales commissions and is not annualized.
**Annualized.
***Relates to purchases and sales of equity securities.
+For the period May 8, 1995 (commencement of operations) to March 31, 1996.
11
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Financial Highlights (continued)
<TABLE>
<CAPTION>
CLASS II
---------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1997 ------------------
(UNAUDITED) 1997 1996+
---------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period.............................. $12.27 $10.32 $10.00
---------------------------------------
Income from investment operations:
Net investment income............................................ .08 .11 .07
Net realized and unrealized gains................................ 1.56 2.02 .25
---------------------------------------
Total from investment operations.................................. 1.64 2.13 .32
---------------------------------------
Less distributions:
Dividends from net investment income............................. (.05) (.04) --
Distributions from net realized gains............................ (.31) (.14) --
---------------------------------------
Total distributions............................................... (.36) (.18) --
---------------------------------------
Net asset value, end of period.................................... $13.55 $12.27 $10.32
---------------------------------------
Total return*..................................................... 13.68% 20.83% 3.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)................................. $3,942 $2,424 $1,431
Ratios to average net assets:
Expenses......................................................... 3.00%** 3.29% 4.21%**
Expenses, including waiver....................................... 2.50%** 2.50% 2.50%**
Net investment income............................................ 1.83%** 1.45% 1.06%**
Portfolio turnover rate........................................... 21.20% 30.58% 9.86%
Average commission rate paid***................................... $.0204 $.0264 $.0205
</TABLE>
*Total return does not reflect sales commissions or the contingent deferred
sales charge and is not annualized.
**Annualized.
***Relates to purchases and sales of equity securities.
+For the period May 8, 1995 (commencement of operations) to March 31, 1996.
12
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Financial Highlights (continued)
<TABLE>
<CAPTION>
ADVISOR CLASS
-------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1997 ----------------
(UNAUDITED) 1997+
---------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period................................ $12.36 $11.56
-------------------------------------
Income from investment operations:
Net investment income.............................................. .25 .07
Net realized and unrealized gains.................................. 1.48 .73
-------------------------------------
Total from investment operations.................................... 1.73 .80
-------------------------------------
Less distributions:
Dividends from net investment income............................... (.07) --
Distributions from net realized gains.............................. (.31) --
-------------------------------------
Total distributions................................................. (.38) --
-------------------------------------
Net asset value, end of period...................................... $13.71 $12.36
-------------------------------------
Total return*....................................................... 14.41% 6.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's)................................... $57 $36
Ratios to average net assets:
Expenses........................................................... 2.00%** 1.90%**
Expenses, including waiver......................................... 1.50%** 1.50%**
Net investment income.............................................. 2.30%** 2.56%**
Portfolio turnover rate............................................. 21.20% 30.58%
Average commission rate paid***..................................... $.0204 $.0264
</TABLE>
*Total return is not annualized.
**Annualized.
***Relates to purchases and sales of equity securities.
+For the period January 2, 1997 (effective date) to March 31, 1997.
See notes to financial statements.
13
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS 71.1%
AUTOMOBILES 3.9%
Debica SA, A.................................................... Poland 5,800 $ 168,644
Peugeot SA...................................................... France 1,000 131,813
Regie Nationale des Usines Renault SA........................... France 6,681 198,088
Volvo AB, B..................................................... Sweden 5,342 153,184
-----------
651,729
-----------
BANKING 9.9%
Argentaria Corporacion Bancaria de Espana SA.................... Spain 3,500 209,386
Bank of Ireland................................................. Irish Republic 10,000 124,204
Bank Slaski SA W Katowicach..................................... Poland 2,160 162,852
Banque Nationale de Paris....................................... France 4,000 201,529
Credit Commercial de France..................................... France 2,800 164,244
Deutsche Bank AG................................................ Germany 4,089 287,020
National Westminster Bank Plc................................... United Kingdom 18,600 280,791
Unidanmark AS, A................................................ Denmark 2,225 143,839
Union Bank of Norway, Primary Capital Certificate............... Norway 2,500 82,316
-----------
1,656,181
-----------
BUILDING MATERIALS & COMPONENTS 2.5%
Anglian Group Plc............................................... United Kingdom 26,400 99,795
Hepworth Plc.................................................... United Kingdom 38,500 129,088
Pilkington Plc.................................................. United Kingdom 75,000 189,812
-----------
418,695
-----------
BUSINESS & PUBLIC SERVICES 1.0%
Lex Service Plc................................................. United Kingdom 22,600 163,029
-----------
CHEMICALS 2.4%
Courtaulds Plc.................................................. United Kingdom 45,000 246,635
Imperial Chemical Industries Plc................................ United Kingdom 9,000 145,950
-----------
392,585
-----------
CONSTRUCTION & HOUSING 2.0%
Dragados y Construcciones SA.................................... Spain 7,800 174,268
Redland Plc..................................................... United Kingdom 42,000 158,765
-----------
333,033
-----------
DATA PROCESSING & REPRODUCTION 0.9%
Rank Group Plc.................................................. United Kingdom 25,000 147,296
-----------
ELECTRICAL & ELECTRONICS 4.0%
ABB AB, B....................................................... Sweden 11,900 167,873
Philips Electronics NV.......................................... Netherlands 6,000 507,764
-----------
675,637
-----------
ELECTRONIC COMPONENTS & INSTRUMENTS 0.9%
BICC Plc........................................................ United Kingdom 53,710 143,723
-----------
</TABLE>
14
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1997 (UNAUDITED) (continued)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
ENERGY SOURCES 5.6%
Norsk Hydro AS.................................................. Norway 3,400 $ 202,609
Rao Gazprom, ADR, Reg S......................................... Russia 6,302 159,126
Repsol SA....................................................... Spain 4,200 181,483
Societe Elf Aquitane SA......................................... France 1,520 202,918
Total SA, B..................................................... France 1,680 192,278
-----------
938,414
-----------
FINANCIAL SERVICES 1.8%
AXA-UAP SA...................................................... France 3,600 241,511
Banca Fideuram SpA.............................................. Italy 14,000 57,828
-----------
299,339
-----------
FOOD & HOUSEHOLD PRODUCTS 2.1%
Northern Foods Plc.............................................. United Kingdom 45,719 178,719
Tate & Lyle Plc................................................. United Kingdom 23,000 163,319
-----------
342,038
-----------
FOREST PRODUCTS & PAPER 6.6%
Assidomaen AB................................................... Sweden 7,700 262,930
Cartiere Burgo SpA.............................................. Italy 17,000 110,372
Enso OY, A...................................................... Finland 12,500 126,908
Enso OY, R...................................................... Finland 12,200 125,016
Mo Och Domsjoe AB, B............................................ Sweden 3,931 147,706
Svenska Cellulosa AB, B......................................... Sweden 4,500 113,614
UPM-Kymmene Corp................................................ Finland 7,500 208,442
-----------
1,094,988
-----------
INDUSTRIAL COMPONENTS 3.7%
BTR Plc......................................................... United Kingdom 52,000 210,816
Sandvik AB, A................................................... Sweden 5,400 185,105
Sandvik AB, B................................................... Sweden 1,000 34,740
SKF AB, B....................................................... Sweden 6,500 189,389
-----------
620,050
-----------
INSURANCE 1.5%
Ste Centrale Du Groupe Des Asurances Nationales................. France 2,990 70,760
Zuerich Versicherung, new....................................... Switzerland 400 174,092
-----------
244,852
-----------
MERCHANDISING 2.2%
Somerfield Plc.................................................. United Kingdom 65,500 211,699
W.H. Smith Group................................................ United Kingdom 26,000 154,236
-----------
365,935
-----------
METALS & MINING 2.3%
British Steel Plc............................................... United Kingdom 55,000 158,036
Eramet SA....................................................... France 1,980 89,110
Pechiney SA, A.................................................. France 2,879 138,305
-----------
385,451
-----------
</TABLE>
15
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1997 (UNAUDITED) (continued)
<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
MULTI-INDUSTRY 1.4%
Cie Generale d'Industrie et de Participation.................... France 150 $ 45,511
Harrisons & Crosfield Plc....................................... United Kingdom 40,110 79,662
Inchcape Plc.................................................... United Kingdom 25,000 115,862
-----------
241,035
-----------
RECREATION & OTHER CONSUMER GOODS 0.6%
Fila Holding SpA, ADR........................................... Italy 3,400 105,188
-----------
TELECOMMUNICATIONS 6.7%
British Telecommunications Plc.................................. United Kingdom 37,430 247,080
Nokia AB, A..................................................... Finland 3,460 325,116
Tele Danmark AS, B.............................................. Denmark 2,050 107,848
Telecom Italia SpA, di Risp..................................... Italy 74,767 291,247
Telefonica de Espana SA......................................... Spain 4,800 150,814
-----------
1,122,105
-----------
TEXTILES & APPAREL 0.5%
Dawson International Plc........................................ United Kingdom 74,822 91,666
-----------
TRANSPORTATION 2.0%
Koninklijke Nedlloyd NV......................................... Netherlands 1,250 41,899
Peninsular & Oriental Steam Navigation Co....................... United Kingdom 15,000 160,192
Transport Development Group Plc................................. United Kingdom 40,000 124,446
-----------
326,537
-----------
UTILITIES ELECTRICAL & GAS 6.2%
BG Plc.......................................................... United Kingdom 40,000 173,773
*Centrica Plc................................................... United Kingdom 30,000 44,975
Empresa Nacional Hidroelectrica del Ribagorzana SA, B........... Spain 5,500 121,592
Iberdrola SA.................................................... Spain 13,200 162,270
Mosenergo, ADR, 144A............................................ Russia 4,500 218,250
National Grid Holdings Plc...................................... United Kingdom 30,000 136,858
Thames Water Group Plc.......................................... United Kingdom 12,755 179,497
-----------
1,037,215
-----------
WHOLESALE & INTERNATIONAL TRADE 0.4%
*Computer 2000 AG............................................... Germany 310 66,508
-----------
TOTAL COMMON STOCKS (COST $9,687,410)........................... 11,863,229
-----------
PREFERRED STOCKS 4.3%
Baumax AG, pfd.................................................. Austria 1,953 37,535
Fiat SpA, pfd................................................... Italy 139,500 247,862
Krones AG Herman Kronseder Maschinen Fabrik, pfd................ Germany 274 113,459
Volkswagen AG, pfd.............................................. Germany 600 314,172
-----------
TOTAL PREFERRED STOCKS (COST $725,748).......................... 713,028
-----------
</TABLE>
16
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
STATEMENT OF INVESTMENTS, SEPTEMBER 30, 1997 (UNAUDITED) (continued)
<TABLE>
<CAPTION>
PRINCIPAL
COUNTRY AMOUNT** VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS (COST $50,313) 0.3%
Government of Italy, 5.00%, 6/28/01............................. Italy $ 50,000 $ 52,375
-----------
SHORT TERM OBLIGATIONS (COST $3,906,763) 23.4%
U.S. Treasury Bills, 4.765% to 5.16% with maturities to
12/26/97.................................................... United States 3,933,000 3,908,537
-----------
TOTAL INVESTMENTS (COST $14,370,234) 99.1%...................... 16,537,169
OTHER ASSETS LESS LIABILITIES 0.9%.............................. 144,231
-----------
TOTAL NET ASSETS 100.0%......................................... $16,681,400
===========
</TABLE>
*Non-income producing.
**Securities traded in U.S. dollars.
See notes to financial statements.
17
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (cost $14,370,234).............................. $16,537,169
Receivables:
Investment securities sold......................................................... 466,369
Fund shares sold................................................................... 188,544
Dividends and interest............................................................. 44,902
Fee reimbursement.................................................................. 36,725
Unamortized organization costs...................................................... 34,441
------------
Total assets.................................................................... 17,308,150
------------
Liabilities:
Payables:
Investment securities purchased.................................................... 502,959
Fund shares redeemed............................................................... 3,156
Affiliates......................................................................... 87,065
Accrued expenses.................................................................... 33,570
------------
Total liabilities............................................................... 626,750
------------
Net assets, at value........................................................... $16,681,400
============
Net assets consist of:
Undistributed net investment income................................................. $ 166,979
Net unrealized appreciation......................................................... 2,166,935
Accumulated net realized gain....................................................... 751,676
Beneficial shares................................................................... 13,595,810
------------
Net assets, at value............................................................ $16,681,400
============
CLASS I:
Net asset value per share ($12,682,524 / 927,738 shares outstanding)................ $13.67
============
Maximum offering price per share ($13.67 / 94.25%).................................. $14.50
============
CLASS II:
Net asset value per share ($3,941,965 / 290,881 shares outstanding)................. $13.55
============
Maximum offering price per share ($13.55 / 99.00%).................................. $13.69
============
ADVISOR CLASS:
Net asset value and offering price per share ($56,911 / 4,152 shares outstanding)... $13.71
============
</TABLE>
See notes to financial statements.
18
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Financial Statements (continued)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<S> <C> <C>
Investment income:
(net of $36,290 foreign taxes withheld)
Dividends................................................................. $226,277
Interest.................................................................. 80,250
------------
Total investment income............................................... $ 306,527
Expenses:
Management fees (Note 3).................................................. 52,161
Administrative fees (Note 3).............................................. 10,431
Distribution fees (Note 3)
Class I.................................................................. 18,910
Class II................................................................. 15,005
Transfer agent fees (Note 3).............................................. 15,108
Custodian fees............................................................ 3,600
Reports to shareholders................................................... 10,300
Registration and filing fees.............................................. 31,000
Professional fees (Note 3)................................................ 5,560
Trustees' fees and expenses............................................... 700
Amortization of organization costs........................................ 6,639
Other..................................................................... 3,712
------------
Total expenses........................................................ 173,126
Less expenses waived (Note 3)............................................. 34,629
------------
Total expenses less expenses waived................................... 138,497
------------
Net investment income................................................ 168,030
------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments.............................................................. 767,388
Foreign currency transactions............................................ (8,403)
------------
Net realized gain......................................................... 758,985
Net unrealized appreciation on investments................................ 998,400
------------
Net realized and unrealized gain........................................... 1,757,385
------------
Net increase in net assets resulting from operations....................... $1,925,415
============
</TABLE>
See notes to financial statements.
19
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Financial Statements (continued)
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-------------------------------------------
<S> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.......................................... $ 168,030 $ 131,642
Net realized gain from investments and foreign currency
transactions................................................. 758,985 492,527
Net unrealized appreciation on investments..................... 998,400 940,661
-------------------------------------------
Net increase in net assets resulting from operations....... 1,925,415 1,564,830
Distributions to shareholders from:
Net investment income:
Class I....................................................... (53,329) (68,343)
Class II...................................................... (9,628) (6,497)
Advisor Class................................................. (231)
Net realized gains:
Class I....................................................... (258,439) (84,294)
Class II...................................................... (65,935) (21,490)
Advisor Class................................................. (982) --
Capital share transactions (Note 2)
Class I....................................................... 2,237,596 3,848,810
Class II...................................................... 1,176,580 722,889
Advisor Class................................................. 1,906 34,267
-------------------------------------------
Net increase in net assets................................. 4,952,953 5,990,172
Net assets:
Beginning of period............................................. 11,728,447 5,738,275
-------------------------------------------
End of period................................................... $ 16,681,400 $ 11,728,447
===========================================
Undistributed net investment income included in net assets:
Beginning of period............................................. $ 62,137 $ 42,720
===========================================
End of period................................................... $ 166,979 $ 62,137
===========================================
</TABLE>
See notes to financial statements.
20
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Notes to Financial Statements (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Templeton Greater European Fund (the Fund) is a separate, diversified series of
Templeton Global Investment Trust (the Trust), which is an open-end investment
company registered under the Investment Company Act of 1940. The Fund seeks to
achieve long-term capital appreciation by investing primarily in equity
securities of companies in Greater Europe (Western, Central and Eastern Europe
and Russia). The following summarizes the Fund's significant accounting
policies.
a. SECURITY VALUATION:
Securities listed or traded on a recognized national exchange or NASDAQ are
valued at the latest reported sales price. Over-the-counter securities and
listed securities for which no sale is reported are valued within the range of
the latest quoted bid and asked prices. Securities for which market quotations
are not readily available are valued at fair value as determined by management
in accordance with procedures established by the Board of Trustees.
b. FOREIGN CURRENCY TRANSLATION:
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against the U.S. dollar on the date of valuation. Purchases and sales
of securities and income items denominated in foreign currencies are translated
into U.S. dollars at the exchange rate in effect on the transaction date. When
the Fund purchases or sells foreign securities it will customarily enter into a
foreign exchange contract to minimize foreign exchange risk from the trade date
to the settlement date of such transactions.
The Fund does not separately report the effect of changes in foreign exchange
rates from changes in market prices on securities held. Such changes are
included in net realized and unrealized gain or loss from investments.
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 difference between the recorded amounts of
dividends, interest, and foreign withholding taxes, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in foreign exchange rates on
foreign currency denominated assets and liabilities other than investments in
securities held at the end of the reporting period.
c. INCOME TAXES:
No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute all of its taxable income.
d. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS:
Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Certain income from foreign securities is recorded as soon as information is
available to the Fund. Interest income and estimated expenses are accrued daily.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date.
21
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Notes to Financial Statements (unaudited) (continued)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.)
D. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS (CONT.)
Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.
e. ORGANIZATION COSTS:
Organization costs are 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.
2. BENEFICIAL SHARES
The Fund offers three classes of shares: Class I, Class II, and Advisor Class
shares. The shares differ by their initial sales load, a contingent deferred
sales charge on Class II shares, distribution fees, voting rights on matters
affecting a single class and the exchange privilege of each class.
At September 30, 1997, there was an unlimited number of shares authorized ($0.01
par value). Transactions in the Fund's shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
-------------------------------------------------------
SEPTEMBER 30, 1997 MARCH 31, 1997
----------------------- -----------------------
CLASS I SHARES: SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold................................................... 308,833 $ 3,907,469 467,229 $ 5,350,835
Shares issued on reinvestment of distributions................ 22,884 282,623 12,150 135,721
Shares redeemed............................................... (154,463) (1,952,496) (143,550) (1,637,746)
--------
Net increase.................................................. 177,254 $ 2,237,596 335,829 $ 3,848,810
========
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
-------------------------------------------------------
SEPTEMBER 30, 1997 MARCH 31, 1997
----------------------- -----------------------
CLASS II SHARES: SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold................................................... 117,941 $ 1,483,689 151,862 $ 1,709,987
Shares issued on reinvestment of distributions................ 5,744 70,471 2,448 27,356
Shares redeemed............................................... (30,415) (377,580) (95,315) (1,014,454)
--------
Net increase.................................................. 93,270 $ 1,176,580 58,995 $ 722,889
========
</TABLE>
22
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Notes to Financial Statements (unaudited) (continued)
2. BENEFICIAL SHARES (CONT.)
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
-------------------------------------------------------
SEPTEMBER 30, 1997 MARCH 31, 1997*
ADVISOR CLASS SHARES: SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold................................................... 76,861 $ 988,987 2,942 $ 34,267
Shares issued on reinvestment of distributions................ 98 1,212 -- --
Shares redeemed............................................... (75,749) (988,293) -- --
--------
Net increase.................................................. 1,210 $ 1,906 2,942 $ 34,267
========
</TABLE>
*Effective date of Advisor Class shares was January 2, 1997
3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Certain officers of the Fund are also officers or directors of Templeton Global
Advisors Ltd. (TGAL), Franklin Templeton Services (FT Services),
Franklin/Templeton Distributors, Inc. (Distributors), and Franklin/Templeton
Investor Services, Inc. (Investor Services), the Fund's investment manager,
administrative manager, principal underwriter, and transfer agent, respectively.
The Fund pays an investment management fee to TGAL of 0.75% per year of the
average daily net assets of the Fund.
The Fund pays its allocated share of an administrative fee to FT Services based
on the Trust's aggregate average daily net assets as follows:
<TABLE>
<CAPTION>
ANNUALIZED
FEE RATE AVERAGE DAILY NET ASSETS
------------------------------------------------------------------
<C> <S>
0.15% First $200 million
0.135% Over $200 million, up to and including $700 million
0.10% Over $700 million, up to and including $1.2 billion
0.075% Over $1.2 billion
</TABLE>
TGAL and FT Services agreed in advance to reduce fees to the extent necessary to
limit total expenses to an annual rate of 1.85%, 2.50%, and 1.50% of the Fund's
average daily net assets of Class I shares, Class II shares and Advisor Class
shares, respectively, through August 1, 1998.
The Fund reimburses Distributors up to 0.35% and 1.00% per year of the average
daily net assets of Class I and Class II, respectively, for costs incurred in
marketing the Fund's shares. Under the Class I distribution plan, costs
exceeding the maximum may be reimbursed in subsequent periods. At September 30
1997, unreimbursed costs were $168,101. Distributors paid net commissions on
sales of Fund shares and received contingent deferred sales charges for the
period of $18,963 and $584, respectively.
During the six months ended September 30, 1997, legal fees of $226 were paid to
a law firm in which an officer of the Fund is a partner.
23
<PAGE>
TEMPLETON GREATER EUROPEAN FUND
Notes to Financial Statements (unaudited) (continued)
4. INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding short-term securities) for the
period ended September 30, 1997 aggregated $3,572,059 and $2,284,333,
respectively.
5. INCOME TAXES
The cost of securities for income tax purposes is the same as that shown in the
Statement of Investments. At September 30, 1997, the net unrealized appreciation
based on the cost of investments for income tax purposes was as follows:
<TABLE>
<S> <C>
Unrealized appreciation............ $2,545,224
Unrealized depreciation............ (378,289)
--------------
Net unrealized appreciation........ $2,166,935
==============
</TABLE>
24
<PAGE>
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 Biotechnology
Discovery Fund
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
Franklin Balance Sheet
Investment Fund*
Franklin Convertible
Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Franklin MicroCap Value Fund*
Franklin Natural Resources Fund
Franklin Real Estate
Securities Fund
Franklin Rising Dividends Fund
Franklin Strategic Income Fund
Franklin Utilities Fund
Franklin Value Fund
Mutual Beacon Fund
Mutual Financial Services Fund
Mutual Qualified Fund
Mutual Shares Fund
Templeton American Trust, Inc.
Fund Allocator Series
Franklin Templeton Conservative
Target Fund
Franklin Templeton Moderate
Target Fund
Franklin Templeton Growth
Target Fund
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
Securities Fund
Franklin Money Fund
Franklin Federal Money 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)
*These funds are now closed to new accounts, with the exception of retirement
accounts.
**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.
++Franklin Valuemark and Franklin Templeton Valuemark Income Plus are issued by
Allianz Life Insurance Company of North America or by its wholly owned
subsidiary, Preferred Life Insurance Company of New York, and distributed by
NALAC Financial Plans, LLC.
10/97.1
<PAGE>
PRINCIPAL UNDERWRITER
Franklin/Templeton Distributors, Inc.
777 Mariners Island Blvd.
San Mateo, California 94404-1585
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 Greater European Fund, which contains more complete information,
including risk factors, 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.
419 S97 11/97
TL419 S97 [Recycled Logo] Printed on recycled paper
