TEMPLETON GLOBAL INVESTMENT TRUST, N-30D, 1998-05-22

TEMPLETON GLOBAL INVESTMENT TRUST
N-30D, 1998-05-22

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TEMPLETON GLOBAL
INFRASTRUCTURE FUND

ANNUAL REPORT
MARCH 31, 1998

[LOGO] FRANKLIN TEMPLETON(R)

<PAGE>
[LOGO] FRANKLIN TEMPLETON CELEBRATING OVER 50 YEARS

Thank you for investing with Franklin Templeton. We encourage our investors to
maintain a long-term perspective, and to expect that mixed in with the good
years can be some bad years. It's important to remember that all securities
markets move both up and down, as do mutual fund share prices. We appreciate
your past support and look forward to serving your investment needs in the years
ahead.

In 1992, Sir John Templeton retired after a 50-year career of helping investors
manage their money. Currently he devotes all of his time and efforts to the John
Templeton Foundation. A major portion of his assets remain invested in the
Templeton funds, which are managed by many of the investment professionals he
selected and trained.

[PHOTO OF MARK J. HOLOWESKO]

MARK J. HOLOWESKO, CFA
President
Templeton Global Investment Trust

<PAGE>
SHAREHOLDER LETTER

Your Fund's Objective: 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.

Dear Shareholder:

We are pleased to bring you this annual report of Templeton Global
Infrastructure Fund, which covers the year ended March 31, 1998.

During this period, the currency crisis that occurred in Asia in late 1997
dominated the news and sent a ripple effect throughout international equity
markets, as investors feared the impact of the crisis on global economic growth.
Global equity markets produced mixed results, and Templeton Global
Infrastructure Fund - Class I produced a 15.00% cumulative total return for the
one-year period, as discussed in the Performance Summary on page 5. During the
same period, the Fund's benchmark, the Morgan Stanley Capital International(R)
World Index, returned 32.47%.(1)

(1) Source: Micropal (MSCI). Market returns are measured in U.S. dollars and
include reinvested dividends. An index is an unmanaged group of securities that
is used to measure market performance. One cannot invest directly in an index.

You will find a complete listing of the fund's portfolio holdings, including
dollar value and number of shares or principal amount, beginning on page 12 of
this report.

CONTENTS

Shareholder Letter ............ 1

Performance Summary
Class I .................... 5
Class II ................... 8

Financial Highlights &
Statement of Investments ...... 10

Financial Statements .......... 16

Notes to Financial
Statements .................... 19

Independent Auditor's Report .. 23

Tax Designation ............... 24

FUND CATEGORY
[PYRAMID GRAPH]

<PAGE>
GEOGRAPHIC DISTRIBUTION
Based on Total Net Assets
3/31/98

[PIE CHART]
This chart shows in pie format the geographic breakdown of hldings in the
Templeton Global Infrastructure Fund as of 3/31/98.

Europe 42.9%
United States 17.9%
Latin America 15.3%
Asia 12.7%
Canada 3.6%
Australia &
New Zealand 3.4%
Short-Term
Investments &
Other Net Assets 4.2%

Equity markets in Europe provided robust returns as many governments there
focused on meeting requirements for the European Monetary Union. Due to
successful corporate restructurings and subdued inflation, we continued to find
stocks we considered bargains in this region, and at the end of the period,
Europe was the Fund's largest exposure (42.9% of total net assets). Two of the
strongest contributors to the Fund's performance were the Finnish
telecommunications company Nokia AB, A (which returned 81.5% during the period)
and Philips Electronics NV of the Netherlands (60.3%).(2)

The U.S. stock market experienced severe volatility due to the Asian financial
crisis, but posted strong overall results. Inflation was benign, interest rates
were relatively low, and domestic equity indices reached record levels by the
end of the reporting period. Strong price performance from telecommunications
equipment provider Lucent Technologies Inc. and networking company Bay Networks
Inc. was beneficial to the Fund during the period.

Most Latin American equity markets performed strongly for a sizable portion of
the year, but due to the Asian currency crisis, they experienced a downturn
during the latter part of 1997. With the exception of Brazil, this trend
continued into 1998, increasing regional investment opportunities for the Fund.
A notable contributor to the Fund's performance, and one of its largest
holdings, was Telefonica de Argentina, SA, B, ADR, whose share price increased
about 33% during the period.

Turbulence in Asian economies and increased worries about currency weaknesses
caused stock prices there to fall significantly, and most

(2) Market returns are measured in U.S. dollars and include reinvested
dividends.

<PAGE>
markets in the region posted double-digit declines during the period. However,
our relatively low exposure to Asian equities (12.7% of total net assets at the
end of the period) protected the Fund somewhat from the area's economic turmoil.

Looking forward, we are optimistic about global equity markets. Many European
companies have just begun their efforts to restructure and have not yet
experienced the earnings growth similar moves have produced in U.S. companies.
In our opinion, 1998 may be yet another year of steady economic growth
accompanied by moderate inflation for the U.S. Although stocks in Malaysia,
South Korea, and Thailand experienced a rebound in early 1998, equity markets
there could experience continued volatility as governments try to balance the
need for structural reform and social stability. Recognizing how high valuations
of European and U.S. stocks are, we intend to focus on companies we believe have
skilled management teams, strong balance sheets, and positive long-term
fundamentals. We shall strive to identify bargains and unlock value in Asian
equities, and believe that the negative impact of the Asian crisis on Latin
American markets may provide us with the opportunity to find value there.

Please remember, this discussion reflects our views, opinions and portfolio
holdings as of March 31, 1998, the end of the reporting period. However, market
and economic conditions are changing constantly, which can be expected to affect
our strategies and the Fund's portfolio composition. Although historic
performance is no guarantee of future results, these insights may help you
understand our investment and management philosophy.

TOP 10 HOLDINGS
3/31/98

This chart lists the top 10 holdings of the Templeton Global Infrastructure
Fund, including industry and country of origin, as of 3/31/98.

COMPANY, % OF TOTAL
INDUSTRY, COUNTRY NET ASSETS
- ----------------- ----------

<S> <C>
Telecom Italia SpA,
Telecommunications, Italy 3.2%

Telefonica de Espana SA,
Telecommunications, Spain 2.8%

Philips Electronics NV,
Electrical & Electronics,
Netherlands 2.3%

YPF Sociedad Anonima,
ADR, Energy Sources,
Argentina 2.3%

British Steel Plc., ADR,
Metals & Mining,
United Kingdom 2.1%

Telecomunicacoes
Brasileiras SA (Telebras),
Telecommunications, Brazil 2.0%

Lucent Technologies Inc.,
Telecommunications, U.S. 2.0%

Telefonica de Argentina SA,
B, ADR, Telecommunications,
Argentina 1.9%

Dragados y Construcciones SA,
Construction & Housing, Spain 1.9%

Iberdrola SA,
Utilities Electrical & Gas, Spain 1.8%
</TABLE>

<PAGE>
There are, of course, special risks involved with global investing related to
market, currency, economic, social, political, and other factors. 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. These risks and other considerations are discussed in the Fund's
prospectus. Investing in any emerging market means accepting a certain amount of
volatility and, in some cases, severe market corrections. While short-term
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
1,056% in the last 15 years, but has suffered five quarterly declines of more
than 20% during that time.(3)

We appreciate your participation in Templeton Global Infrastructure Fund, and
welcome any comments or suggestions you may have.

Sincerely,

/s/ Mark J. Holowesko

Mark J. Holowesko, CFA
President
Templeton Global Investment Trust

/s/ Gary R. Clemons

Gary R. Clemons
Portfolio Manager

(3) Source: Bloomberg. Based on quarterly percentage change over 15 years ended
March 31, 1998.

<PAGE>
PERFORMANCE SUMMARY

CLASS I

Templeton Global Infrastructure Fund - Class I provided a 15.00% cumulative
total return for the one-year period ended March 31, 1998. Cumulative total
return represents the change in value of an investment, assuming reinvestment of
dividends and capital gains, if any, and does not include the initial sales
charge.

The Fund's share price, as measured by net asset value, increased 95 cents
($0.950), from $11.54 on March 31, 1997, to $12.49 on March 31, 1998. During the
reporting period, shareholders received distributions totaling 70.50 cents
($0.7050) per share, including 17.50 cents ($0.1750) in dividend income and 53.0
cents ($0.5300) 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.

The graph on page 6 compares the performance of Templeton Global Infrastructure
Fund - Class I with the unmanaged Morgan Stanley Capital International(R) (MSCI)
World Index, which tracks 22 equity markets worldwide; and the Goldman Sachs
Extended Global

Past performance is not predictive of future results.

<PAGE>
Market Index (GS-EGMI), which is a combination of the Financial Times of London
- - Actuaries World Index and the International Finance Corporation Investable
Composite Index, and tracks equity securities in markets around the world.
Please remember that the Fund's performance differs from that of an index
because an index is not managed according to any investment strategy, does not
contain cash (the Fund generally carries a certain percentage of cash at any
given time), and includes no sales charges or management expenses. One cannot
invest directly in an index nor is an index representative of the Fund's
portfolio.

CLASS I
Total Return Index Comparison
$10,000 Investment (3/14/94 - 3/31/98)

The following line graph compares the performance of the Templeton Global
Infrastructure Fund's Class I shares since inception to that of the Morgan
Stanley Capital International (MSCI) World Index and the Goldman Sachs Extended
Global Market Index (GS-EGMI) based on a $10,000 investment from 3/14/94 to
3/31/98.

Templeton Global MSCI Goldman
Infrastructure- World Sachs
Class I* EGMI
--------------------------------------
3/14/94 $9,425 $10,000 $10,000
Mar-94 $9,435 $9,760 $9,771
Apr-94 $9,491 $10,063 $10,056
May-94 $9,500 $10,091 $10,096
Jun-94 $9,406 $10,065 $10,087
Jul-94 $9,632 $10,258 $10,291
Aug-94 $9,812 $10,568 $10,623
Sep-94 $9,746 $10,293 $10,360
Oct-94 $9,868 $10,587 $10,644
Nov-94 $9,387 $10,130 $10,173
Dec-94 $9,284 $10,230 $10,245
Jan-95 $8,924 $10,078 $10,058
Feb-95 $8,924 $10,227 $10,140
Mar-95 $8,924 $10,722 $10,636
Apr-95 $9,199 $11,098 $11,023
May-95 $9,563 $11,195 $11,095
Jun-95 $9,724 $11,194 $11,062
Jul-95 $10,379 $11,756 $11,628
Aug-95 $9,962 $11,496 $11,367
Sep-95 $10,009 $11,833 $11,669
Oct-95 $9,354 $11,649 $11,474
Nov-95 $9,297 $12,056 $11,860
Dec-95 $9,450 $12,411 $12,211
Jan-96 $9,897 $12,637 $12,458
Feb-96 $10,066 $12,716 $12,518
Mar-96 $9,976 $12,931 $12,705
Apr-96 $10,572 $13,237 $13,031
May-96 $10,816 $13,250 $13,029
Jun-96 $10,646 $13,320 $13,083
Jul-96 $10,257 $12,852 $12,601
Aug-96 $10,636 $13,002 $12,760
Sep-96 $10,736 $13,514 $13,254
Oct-96 $10,616 $13,610 $13,323
Nov-96 $11,296 $14,375 $14,039
Dec-96 $11,423 $14,148 $13,820
Jan-97 $11,996 $14,320 $13,982
Feb-97 $11,755 $14,488 $14,160
Mar-97 $11,594 $14,204 $13,852
Apr-97 $11,755 $14,670 $14,256
May-97 $12,457 $15,579 $15,198
Jun-97 $12,885 $16,358 $15,934
Jul-97 $13,628 $17,114 $16,674
Aug-97 $13,404 $15,972 $15,612
Sep-97 $13,923 $16,841 $16,441
Oct-97 $12,468 $15,958 $15,503
Nov-97 $12,203 $16,243 $15,723
Dec-97 $12,073 $16,443 $15,930
Jan-98 $11,817 $16,904 $16,304
Feb-98 $12,554 $18,050 $17,426
Mar-98 $13,333 $18,815 $18,151

THE HISTORICAL PERFORMANCE SHOWN PERTAINS ONLY TO THE FUND'S CLASS I SHARES. THE
FUND OFFERS ANOTHER SHARE CLASS SUBJECT TO DIFFERENT FEES AND EXPENSES, WHICH
AFFECT PERFORMANCE. PLEASE SEE THE PROSPECTUS FOR MORE DETAILS.

(1) Includes the sales charge and represents the change in value of an
investment over the periods shown. Total return assumes reinvestment of
dividends and capital gains at net asset value. Past performance is not
predictive of future results.

(2) Indices are unmanaged and include reinvested dividends. One cannot invest
directly in an index.

Past performance is not predictive of future results.

<PAGE>
CLASS I
Periods ended 3/31/98

<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR 3-YEAR (3/14/94)
------ ------ ---------

<S> <C> <C> <C>
Cumulative Total Return(1) 15.00% 49.40% 41.46%
Average Annual Total Return(2) 8.42% 12.07% 7.37%
Value of $10,000 Investment(3) $10,842 $14,082 $13,333
</TABLE>

<TABLE>
<CAPTION>
3/31/95 3/31/96 3/31/97 3/31/98
------- ------- ------- -------
<S> <C> <C> <C> <C>
One-Year Total Return(4) -5.41% 11.79% 16.22% 15.00%
</TABLE>

(1) Cumulative total return represents the change in value of an investment over
the periods indicated and does not include the sales charge.

(2) Average annual total return represents the average annual change in value of
an investment over the periods indicated 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 periods indicated and include the maximum 5.75% initial sales
charge.

(4) One-year total return represents the change in value of an investment over
the 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. Since markets can go down as well as up, investment return and principal
value will fluctuate with market conditions, currency volatility, and the
economic, social 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 their relatively small size and lesser
liquidity. You may have a gain or loss when you sell your shares.

From March 14, 1994, through April 15, 1995 expense waivers by the Fund's
Business Manager increased the Fund's total return. If the Business Manager had
not taken this action, total returns for Class I shares would have been lower.

Past performance is not predictive of future results.

<PAGE>
CLASS II

Templeton Global Infrastructure Fund - Class II provided a 14.13% cumulative
total return for the one-year period ended March 31, 1998. Cumulative total
return represents the change in value of an investment, assuming reinvestment of
dividends and capital gains, if any, and does not include sales charges.

The Fund's share price, as measured by net asset value, increased 91 cents
($0.910), from $11.46 on March 31, 1997, to $12.37 on March 31, 1998. During the
reporting period, shareholders received distributions totaling 64.26 cents
($0.6426) per share, including 11.26 cents ($0.1126) in dividend income, and
53.0 cents ($0.5300) 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.

The graph on page 9 compares the performance of Templeton Global Infrastructure
Fund - Class II with the unmanaged Morgan Stanley Capital International(R)
(MSCI) World Index, which tracks 22 equity markets worldwide; and the Goldman
Sachs Extended Global Market Index (GS-EGMI), which is a combination of the
Financial Times of London - Actuaries World Index and the International Finance
Corporations Investable Composite Index, and tracks equity securities in markets
around the world. Please remember that the Fund's performance differs from that
of an index because an index is not managed according to any investment
strategy, does not contain cash (the Fund generally carries a certain percentage
of cash at any given time), and includes no sales charges or management
expenses. One cannot invest directly in an index nor is an index representative
of the Fund's portfolio.

Past performance is not predictive of future results.

<PAGE>
CLASS II
Total Return Index Comparison
$10,000 Investment (5/1/95 - 3/31/98)

The following line graph compares the performance of the Templeton Global
Infrastructure Fund's Class II shares since inception to that of the Morgan
Stanley Capital International (MSCI) World Index and the Goldman Sachs Extended
Global Market Index (GS-EGMI) based on a $10,000 investment from 5/1/95 to
3/31/98.

Templeton Global MSCI Goldman
Infrastructure- World Sachs
Class II* EGMI
---------------------------------------
5/1/95 $9,898 $10,000 $10,000
May-95 $10,290 $10,088 $10,065
Jun-95 $10,454 $10,086 $10,036
Jul-95 $11,149 $10,593 $10,549
Aug-95 $10,699 $10,359 $10,312
Sep-95 $10,740 $10,663 $10,587
Oct-95 $10,035 $10,497 $10,410
Nov-95 $9,963 $10,863 $10,760
Dec-95 $10,123 $11,183 $11,078
Jan-96 $10,614 $11,387 $11,302
Feb-96 $10,785 $11,458 $11,357
Mar-96 $10,679 $11,651 $11,526
Apr-96 $11,309 $11,927 $11,822
May-96 $11,574 $11,940 $11,820
Jun-96 $11,381 $12,002 $11,869
Jul-96 $10,951 $11,581 $11,432
Aug-96 $11,370 $11,716 $11,576
Sep-96 $11,467 $12,177 $12,024
Oct-96 $11,316 $12,264 $12,087
Nov-96 $12,047 $12,953 $12,736
Dec-96 $12,170 $12,748 $12,537
Jan-97 $12,772 $12,904 $12,685
Feb-97 $12,514 $13,054 $12,846
Mar-97 $12,331 $12,799 $12,567
Apr-97 $12,493 $13,219 $12,934
May-97 $13,241 $14,038 $13,788
Jun-97 $13,677 $14,739 $14,455
Jul-97 $14,461 $15,421 $15,127
Aug-97 $14,211 $14,392 $14,163
Sep-97 $14,755 $15,175 $14,915
Oct-97 $13,209 $14,379 $14,064
Nov-97 $12,915 $14,636 $14,264
Dec-97 $12,777 $14,816 $14,452
Jan-98 $12,504 $15,232 $14,791
Feb-98 $13,266 $16,265 $15,809
Mar-98 $14,074 $16,954 $16,467

THE HISTORICAL PERFORMANCE SHOWN PERTAINS ONLY TO THE FUND'S CLASS II SHARES.
THE FUND OFFERS ANOTHER SHARE CLASS SUBJECT TO DIFFERENT FEES AND EXPENSES,
WHICH AFFECT PERFORMANCE. PLEASE SEE THE PROSPECTUS FOR MORE DETAILS.

(1) Includes all sales charges and represents the change in value of an
investment over the period shown. Total return assumes reinvestment of dividends
and capital gains at net asset value. Past performance is not predictive of
future results.

(2) Indices are unmanaged and include reinvested dividends. One cannot invest
directly in an index.

CLASS II
Periods ended 3/31/98

<TABLE>
<CAPTION>
SINCE
INCEPTION
1-YEAR (5/1/95)
------ --------

<S> <C> <C>
Cumulative Total Return(1) 14.13% 42.19%
Average Annual Total Return(2) 11.96% 12.43%
Value of $10,000 Investment(3) $11,196 $14,074
</TABLE>

(1) Cumulative total return represents the change in value of an investment over
the periods indicated 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 and includes the 1.0% initial sales
charge and 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.

Past performance is not predictive of future results.

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Highlights

<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
---------------------------------------------------
1998 1997 1996 1995 1994+
---------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE - CLASS I
(For a share outstanding throughout the year)
Net asset value, beginning of year.......................... $11.54 $10.04 $9.43 $10.01 $10.00
---------------------------------------------------
Income from investment operations:
Net investment income...................................... .12 .17 .04 .07 .009
Net realized and unrealized gains (losses)................. 1.54 1.45 1.03 (.61) .001
---------------------------------------------------
Total from investment operations............................ 1.66 1.62 1.07 (.54) .01
---------------------------------------------------
Less distributions from:
Net investment income...................................... (.18) (.07) (.05) (.04) --
Net realized gains......................................... (.53) (.05) (.41) -- --
---------------------------------------------------
Total distributions......................................... (.71) (.12) (.46) (.04) --
---------------------------------------------------
Net asset value, end of year................................ $12.49 $11.54 $10.04 $9.43 $10.01
===================================================
Total Return*............................................... 15.00% 16.22% 11.79% (5.41)% .10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's)............................. $28,910 $28,011 $21,590 $18,717 $101
Ratios to average net assets:
Expenses................................................... 1.82% 2.08% 2.32% 1.25% 1.25%**
Expenses, excluding waiver and payments by affiliate....... 1.82% 2.08% 2.37% 3.25% 32.02%**
Net investment income...................................... .89% 1.59% .40% 1.38% 1.89%**
Portfolio turnover rate..................................... 27.26% 23.52% 38.22% 3.21% --
Average commission rate paid***............................. $.0062 $.0015 $.0083 -- --
</TABLE>

*Total return does not reflect sales commissions and is not annualized.
**Annualized.
***Relates to purchases and sales of equity securities. Prior to fiscal year
1996 disclosure of average commission rate was not required.
+For the period March 14, 1994 (commencement of operations) to March 31, 1994.
10

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Highlights (continued)

<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
--------------------------
1998 1997 1996+
--------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE - CLASS II
(For a share outstanding throughout the year)
Net asset value, beginning of year.......................... $11.46 $9.99 $9.73
--------------------------
Income from investment operations:
Net investment income (loss)............................... .03 .11 (.02)
Net realized and unrealized gains.......................... 1.52 1.43 .73
--------------------------
Total from investment operations............................ 1.55 1.54 .71
--------------------------
Less distributions from:
Net investment income...................................... (.11) (.02) (.04)
Net realized gains......................................... (.53) (.05) (.41)
--------------------------
Total distributions......................................... (.64) (.07) (.45)
--------------------------
Net asset value, end of year................................ $12.37 $11.46 $9.99
==========================
Total Return*............................................... 14.13% 15.48% 7.66%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's)............................. $4,209 $2,844 $1,379
Ratios to average net assets:
Expenses................................................... 2.47% 2.73% 2.97%**
Net investment income (loss)............................... .17% .98% (.88)%**
Portfolio turnover rate..................................... 27.26% 23.52% 38.22%
Average commission rate paid***............................. $.0062 $.0015 $.0083
</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 1, 1995 (effective date) to March 31, 1996.
See Notes to Financial Statements.
11

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
STATEMENT OF INVESTMENTS, MARCH 31, 1998

<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
-------------------------------------
<S> <C> <C> <C>
COMMON STOCKS 90.6%
AUTOMOBILES 2.6%
Autoliv Inc. ............................................... Sweden 13,700 $ 425,556

Autoliv Inc., SDR........................................... Sweden 5,100 158,209

Weifu Fuel Injection Co. Ltd. .............................. China 800,000 263,284
-----------
847,049
-----------

BUILDING MATERIALS & COMPONENTS 5.5%
Anglian Group Plc. ......................................... United Kingdom 40,000 158,076

Cementos Diamante SA, ADR, 144A............................. Colombia 28,500 238,688

Det Danske Traelastkompagni AS.............................. Denmark 4,300 426,962

Parbury Ltd. ............................................... Australia 803,000 226,317

Svedala Industri, A......................................... Sweden 28,500 573,957

Unione Cementi Marchino Emiliane (Unicem), di Risp.......... Italy 31,000 182,930
-----------
1,806,930
-----------

CHEMICALS .2%
European Vinyls Corporation Evc International NV............ Netherlands 2,865 59,095
-----------

CONSTRUCTION & HOUSING 4.0%
City Developments Ltd., fgn. ............................... Singapore 52,000 255,975

Dragados y Construcciones SA................................ Spain 18,900 622,316

Engil-Sociedade Gestora de Participacoes Sociais SA......... Portugal 28,600 332,065

*Sociedade Construcoes Soares da Costa SA................... Portugal 14,200 102,492
-----------
1,312,848
-----------

DATA PROCESSING & REPRODUCTION 3.9%
*3Com Corp. ................................................ United States 16,000 575,000

*Bay Networks Inc........................................... United States 11,500 311,938

*NCR Corp. ................................................. United States 390 12,894

*Newbridge Networks Corp. .................................. Canada 14,400 387,000
-----------
1,286,832
-----------

ELECTRICAL & ELECTRONICS 5.6%
Dongfang Electrical Machinery .............................. China 1,208,000 240,094

*DSC Communications Corp. .................................. United States 8,050 146,409

Gold Peak Industries (Holding) ............................. Hong Kong 352,000 162,410

Motorola Inc. .............................................. United States 9,200 557,750

Philips Electronics NV...................................... Netherlands 10,400 763,275
-----------
1,869,938
-----------

ELECTRONIC COMPONENTS & INSTRUMENTS .3% United Kingdom 44,300 110,531
BICC Plc. .................................................. -----------

ENERGY SOURCES 3.6%
Hub Power Co. Ltd., GDR, 144A............................... Pakistan 9,750 258,375

Rao Gazprom, ADR, 144A...................................... Russia 7,800 165,360

YPF Sociedad Anonima, ADR................................... Argentina 22,200 754,800
-----------
1,178,535
-----------

</TABLE>

<PAGE>
TEMPLETON GLOBAL INFRASTRUCTURE FUND
STATEMENT OF INVESTMENTS, MARCH 31, 1998 (CONT.)

<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
-------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
FOREST PRODUCTS & PAPER 2.3%
Munksjo AB.................................................. Sweden 39,000 $ 402,464

*PT Inti Indorayon Utama.................................... Indonesia 235,000 27,847

Weyerhaeuser Co. ........................................... United States 6,000 339,000
-----------
769,311
-----------

INDUSTRIAL COMPONENTS 6.7%
BTR Plc. ................................................... United Kingdom 144,200 473,881

*Detroit Diesel Corp. ...................................... United States 26,500 581,344

*Granges AB................................................. Sweden 9,850 171,261

Madeco Manufacturera de Cobre SA, ADR....................... Chile 14,600 252,763

*Shaw Group Inc. ........................................... United States 9,400 234,413

Weir Group Plc. ............................................ United Kingdom 112,800 512,830
-----------
2,226,492
-----------

MACHINERY & ENGINEERING 3.8%
*Gradall Industries Inc. ................................... United States 30,000 528,750

SNC-Lavalin Group Inc., A................................... Canada 31,800 313,047

VA Technologie AG........................................... Austria 2,680 422,255
-----------
1,264,052
-----------

METALS & MINING 6.5%
British Steel Plc., ADR..................................... United Kingdom 28,700 695,975

Cia Vale do Rio Doce, ADR................................... Brazil 15,200 364,944

Kang Won Industrial Co. Ltd. ............................... South Korea 11,000 25,018

Minorco SA, ADR............................................. Luxembourg 16,900 278,586

Oregon Steel Mills Inc. .................................... United States 27,100 596,200

Pohang Iron & Steel Co. Ltd. ............................... South Korea 3,400 202,048
-----------
2,162,771
-----------

MULTI-INDUSTRY 4.2%
Alfa SA de CV, A............................................ Mexico 58,500 329,655

Foster Wheeler Corp. ....................................... United States 7,500 229,219

Hicom Holdings Bhd. ........................................ Malaysia 32,000 18,286

La Cemento Nacional SA, GDR................................. Ecuador 400 72,000

La Cemento Nacional CA, GDR, 144A........................... Ecuador 1,400 252,000

Metra OY, B................................................. Finland 20,600 502,828
-----------
1,403,988
-----------

REAL ESTATE 1.2%
*MDX Public Co. Ltd., fgn. ................................. Thailand 127,000 10,516

Taylor Woodrow Plc. ........................................ United Kingdom 97,300 375,559
-----------
386,075
-----------

TELECOMMUNICATIONS 20.7%
AT&T Corp. ................................................. United States 6,250 410,156

BCE Inc. ................................................... Canada 11,800 492,650

*Chengdu Telecommunications Cable Co. Ltd., H............... China 490,000 70,828

</TABLE>

<PAGE>
TEMPLETON GLOBAL INFRASTRUCTURE FUND
STATEMENT OF INVESTMENTS, MARCH 31, 1998 (CONT.)

<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
-------------------------------------
<S> <C> <C> <C>
COMMON STOCKS (CONT.)
TELECOMMUNICATIONS (CONT.)
Koninklijke Ptt Nederland NV................................ Netherlands 8,600 $ 445,532

Lucent Technologies Inc. ................................... United States 5,125 655,359

*Millicom International Cellular SA......................... Luxembourg 11,100 488,400

Nokia AB, A................................................. Finland 1,600 172,040

Pakistan Telecom Corp. PTC.................................. Pakistan 1,890 125,685

PT Indosat TBK, ADR......................................... Indonesia 11,800 182,163

Tele Danmark AS, B.......................................... Denmark 2,290 207,892

Telecom Italia SpA.......................................... Italy 33,330 262,702

Telecom Italia SpA, di Risp................................. Italy 129,450 790,508

Telecomunicacoes Brasileiras SA (Telebras).................. Brazil 1,065,900 110,148

Teledanmark AS, ADS......................................... Denmark 11,660 531,988

Telefonica de Argentina SA, B, ADR.......................... Argentina 16,600 631,838

Telefonica de Espana SA..................................... Spain 20,900 921,109

Telefonica del Peru SA, B................................... Peru 115,000 246,092

Telefonos de Mexico SA (Telmex), ADR, L..................... Mexico 2,010 113,314
-----------
6,858,404
-----------

TRANSPORTATION 6.5%
Air New Zealand Ltd., B..................................... New Zealand 134,000 185,205

*Fritz Companies Inc. ...................................... United States 27,200 431,800

Great Eastern Shipping Co. Ltd., GDR, 144A.................. India 46,900 313,058

Guangshen Railway Co. Ltd., ADR............................. China 20,750 246,406

GZI Transport Ltd. ......................................... China 86,000 31,078

*GZI Transport Ltd., wts., 144A............................. China 17,200 306

IMC Holdings Ltd. .......................................... Hong Kong 140,000 32,162

Mayne Nickless Ltd., A...................................... Australia 70,400 364,150

Osprey Maritime Ltd. ....................................... Singapore 349,500 189,357

Qantas Airways Ltd., ADR, 144A.............................. Australia 19,300 313,432

Tranz Rail Holdings Ltd., ADR............................... New Zealand 5,133 54,538
-----------
2,161,492
-----------

UTILITIES ELECTRICAL & GAS 13.0%
BG Plc. .................................................... United Kingdom 96,611 507,176

Central Costanera SA, ADR, 144A............................. Argentina 9,850 337,906

*Centrica Plc. ............................................. United Kingdom 175,000 331,140

*CEZ AS..................................................... Czech Republic 9,600 288,652

Guangdong Electric Power Development Co Ltd., B, 144A....... China 816,000 442,316

Hong Kong Electric Holdings Ltd. ........................... Hong Kong 99,500 341,585

Iberdrola SA................................................ Spain 39,600 601,509

*Kohinoor Energy Ltd. ...................................... Pakistan 710,000 252,466

Korea Electric Power Corp. ................................. South Korea 10,300 133,863

National Power Plc. ........................................ United Kingdom 38,400 393,208

Shandong Huaneng Power Development Co. Ltd., ADR............ China 49,400 364,325

Texas Utilities Holding Co. ................................ United States 8,000 314,500
-----------
4,308,646
-----------
TOTAL COMMON STOCKS (COST $26,616,451)...................... 30,012,989
-----------
</TABLE>

<PAGE>
TEMPLETON GLOBAL INFRASTRUCTURE FUND
STATEMENT OF INVESTMENTS, MARCH 31, 1998 (CONT.)

<TABLE>
<CAPTION>
COUNTRY SHARES VALUE
-------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS 5.2%
Banco Bradesco SA, pfd...................................... Brazil 38,400,000 $ 396,816

Ballast Nedam NV, ctf., conv., pfd. ........................ Netherlands 7,608 375,893

Petroleo Brasileiro SA (Petrobras), pfd. ................... Brazil 1,679,000 400,166

Telecomunicacoes Brasileiras SA (Telebras), pfd., ADR....... Brazil 4,305 558,843
-----------
TOTAL PREFERRED STOCKS (COST $1,130,726).................... 1,731,718
-----------
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT (COST
$27,747,177).............................................. 31,744,707
-----------
PRINCIPAL
AMOUNT**
----------
REPURCHASE AGREEMENT 1.2%
UBS Securities Inc., 5.94%, 4/01/98, (Maturity Value $374,062)
(COST $374,000) Collateralized by U.S. Treasury Bills and
Notes..................................................... United States $ 374,000 374,000
-----------

TOTAL INVESTMENTS (COST $28,121,177) 97.0%.................. 32,118,707
OTHER ASSETS, LESS LIABILITIES 3.0%......................... 1,000,066
-----------
TOTAL NET ASSETS 100.0%..................................... $33,118,773
===========
</TABLE>

*Non-income producing.
**Securities traded in U.S. dollars.
See Notes to Financial Statements.
15

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Statements

STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1998

<TABLE>
<S> <C>
Assets:
Investments in securities, at value (cost $27,747,177)..... $31,744,707
Repurchase agreement, at value and cost.................... 374,000
Cash....................................................... 106
Receivables:
Investment securities sold................................ 891,424
Fund shares sold.......................................... 55,782
Dividends and interest.................................... 174,281
Organization costs......................................... 16,793
-----------
Total assets.......................................... 33,257,093
-----------
Liabilities:
Payables:
Fund shares redeemed...................................... 21,317
To affiliates............................................. 56,989
Accrued expenses........................................... 60,014
-----------
Total liabilities..................................... 138,320
-----------
Net assets, at value........................................ $33,118,773
===========
Net assets consist of:
Undistributed net investment income........................ $ 84,488
Net unrealized appreciation................................ 3,997,530
Accumulated net realized gain.............................. 1,784,715
Beneficial shares.......................................... 27,252,040
-----------
Net assets, at value........................................ $33,118,773
===========
CLASS I:
Net asset value per share ($28,910,140 / 2,314,696 shares
outstanding)............................................. $12.49
===========
Maximum offering price per share ($12.49 / 94.25%)......... $13.25
===========
CLASS II:
Net asset value per share ($4,208,633 / 340,156 shares
outstanding)*............................................ $12.37
===========
Maximum offering price per share ($12.37 / 99.00%)......... $12.49
===========
</TABLE>

*Redemption price per share is equal to net asset value less any applicable
sales charge.
See Notes to Financial Statements.
16

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Statements (continued)

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1998

<TABLE>
<S> <C> <C>
Investment Income:
(net of foreign taxes of $89,633)
Dividends.................................................. $ 864,702
Interest................................................... 52,050
----------
Total investment income............................... $ 916,752
Expenses:
Management fees (Note 3)................................... 254,384
Administrative fees (Note 3)............................... 50,877
Distribution fees (Note 3)
Class I................................................... 105,405
Class II.................................................. 38,727
Transfer agent fees (Note 3)............................... 72,000
Custodian fees............................................. 18,043
Reports to shareholders.................................... 29,350
Registration and filing fees............................... 38,500
Professional fees (Note 3)................................. 17,891
Trustees' fees and expenses................................ 3,325
Amortization of organization costs......................... 14,103
Other...................................................... 248
----------
Total expenses........................................ 642,853
----------
Net investment income........................... 273,899
----------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments............................................... 3,151,341
Foreign currency transactions............................. (52,164)
----------
Net realized gain...................................... 3,099,177
Net unrealized appreciation on investments............. 902,736
----------
Net realized and unrealized gain............................ 4,001,913
----------
Net increase in net assets resulting from operations........ $4,275,812
==========
</TABLE>

See Notes to Financial Statements.
17

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
Financial Statements (continued)

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MARCH 31, 1998 AND 1997

<TABLE>
<CAPTION>
1998 1997
-----------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 273,899 $ 415,433
Net realized gain from investments and foreign currency
transactions............................................ 3,099,177 145,720
Net unrealized appreciation on investments................ 902,736 3,342,267
-----------------------------
Net increase in net assets resulting from operations.... 4,275,812 3,903,420
Distributions to shareholders from:
Net investment income:
Class I.................................................. (422,396) (154,491)
Class II................................................. (32,529) (3,904)
Net realized gains:
Class I.................................................. (1,282,490) (111,693)
Class II................................................. (182,774) (7,835)
Fund share transactions (Note 2):
Class I.................................................. (1,276,300) 3,041,408
Class II................................................. 1,184,703 1,218,131
-----------------------------
Net increase in net assets.............................. 2,264,026 7,885,036
Net assets:
Beginning of year.......................................... 30,854,747 22,969,711
-----------------------------
End of year................................................ $33,118,773 $30,854,747
=============================
Undistributed net investment income included in net assets
End of year................................................ $ 84,488 $ 279,647
=============================
</TABLE>

See Notes to Financial Statements.
18

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
Notes to Financial Statements

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Templeton Global Infrastructure 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 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. 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 U.S. dollars 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 and 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

<PAGE>
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Notes to Financial Statements (continued)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.)

d. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS (CONT.)

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.

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.

Common expenses incurred by the Trust are allocated among the funds based on the
ratio of net assets of each fund to the combined net assets. Other expenses are
charged to each fund on a specific identification basis.

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 two classes of shares: Class I and Class II shares. The shares
differs by their initial sales load, distribution fees, voting rights on matters
affecting a single class of shares and the exchange privilege of each class.

At March 31, 1998, there were an unlimited number of shares of beneficial
interest authorized ($0.01 par value). Transactions in the Fund's shares were as
follows:

<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
----------------------------------------------------------
1998 1997
----------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS I SHARES:
Shares sold................................................. 608,694 $ 7,533,785 1,086,417 $11,771,822
Shares issued on reinvestment of distributions.............. 141,485 1,611,708 22,841 247,513
Shares redeemed............................................. (862,774) (10,421,793) (832,421) (8,977,927)
----------------------------------------------------------
Net increase (decrease)..................................... (112,595) $ (1,276,300) 276,837 $ 3,041,408
==========================================================
</TABLE>

<PAGE>
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Notes to Financial Statements (continued)

2. BENEFICIAL SHARES (CONT.)

<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
-----------------------------------------------------
1998 1997
-----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------
<S> <C> <C> <C> <C>
CLASS II SHARES:
Shares sold................................................. 177,194 $ 2,175,334 129,229 $1,428,745
Shares issued on reinvestment of distributions.............. 18,209 205,125 1,067 11,468
Shares redeemed............................................. (103,342) (1,195,756) (20,235) (222,082)
-----------------------------------------------------
Net increase................................................ 92,061 $ 1,184,703 110,061 $1,218,131
=====================================================
</TABLE>

3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

Certain officers of the Fund are also officers or directors of Templeton
Investment Counsel, Inc. (TICI), Franklin Templeton Services, Inc. (FT
Services), Franklin/Templeton Distributors, Inc. (Distributors) and
Franklin/Templeton Investor Services, Inc. (Investors Services), the Fund's
investment manager, administrative manager, principal underwriter, and transfer
agent, respectively.

The Fund pays an investment management fee to TICI 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
- -----------------------------------------------------------------
<S> <C>
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>

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 shares, respectively, for costs
incurred in marketing the Fund's Class I and Class II shares. Under the Class I
distribution plan, costs exceeding the maximum may be reimbursed in subsequent
periods. At March 31, 1998, unreimbursed costs were $1,303,618. Distributors
received net commissions from sales of Fund shares, and received contingent
deferred sales charges for the period of $11,940 and $3,705, respectively.

Included in professional fees are legal fees of $5,425 that were paid to a law
firm in which a partner is an officer of the Fund.

4. INVESTMENT TRANSACTIONS

Purchases and sales of securities (excluding short-term securities) for the
period ended March 31, 1997 aggregated $8,870,873 and $8,920,886, respectively.

<PAGE>
TEMPLETON GLOBAL INFRASTRUCTURE FUND
Notes to Financial Statements (continued)

5. INCOME TAXES

The cost of securities for income tax purposes is the same as that shown in the
Statement of Investments. At March 31, 1998, the net unrealized appreciation
based on the cost of investments for income tax purposes was as follows:

<TABLE>
<S> <C>
Unrealized appreciation....... $ 8,220,589
Unrealized depreciation....... (4,223,059)
-----------
Net unrealized appreciation... $ 3,997,530
===========
</TABLE>

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
Independent Auditor's Report

THE BOARD OF TRUSTEES AND SHAREHOLDERS
TEMPLETON GLOBAL INFRASTRUCTURE FUND

We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Templeton Global Infrastructure Fund as of
March 31, 1998, and the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended and the financial highlights for the periods indicated in the
accompanying financial statements. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1998, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Templeton Global Infrastructure Fund as of March 31, 1998, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.

McGLADREY & PULLEN, LLP

New York, New York
April 24, 1998

<PAGE>

TEMPLETON GLOBAL INFRASTRUCTURE FUND
Tax Designation

Under Section 852(b)(3)(C) of the Internal Revenue Code, the Fund hereby
designates the following amounts as capital gain dividends for the fiscal year
ended March 31, 1998:

<TABLE>
<S> <C>
28% Rate Gain............................... $ 622,052
20% Rate Gain............................... 2,443,997
----------
Total....................................... $3,066,049
==========
</TABLE>

Under Section 854(b)(2) of the Internal Revenue Code, the Fund hereby designates
16.10% of the ordinary income dividends as income qualifying for the dividends
received deduction for the fiscal year ended March 31, 1998.

<PAGE>

LITERATURE REQUEST

For a free brochure and prospectus, which contain more complete information,
including charges and expenses, call Franklin Templeton Fund Information at
1-800/DIAL BEN(R) (1-800/342-5236). Please read the prospectus carefully before
investing or sending 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
Mutual Discovery 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
Mutual European Fund
Templeton Global Bond Fund
Templeton Growth and
Income Fund

GLOBAL INCOME
Franklin Global Government
Income Fund
Franklin Templeton Global
Currency 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

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 Floating Rate Trust
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

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
plan 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. The Franklin Valuemark Funds are managed by Franklin
Advisers, Inc. and its Templeton and Franklin affiliates. 05/98

<PAGE>
TEMPLETON GLOBAL
INFRASTRUCTURE FUND

AUDITORS
McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017-2416

PRINCIPAL UNDERWRITER:
Franklin/Templeton Distributors, Inc.
777 Mariners Island Blvd.
San Mateo, CA 94404-1585

SHAREHOLDER SERVICES
1-800-632-2301

FUND INFORMATION
1-800-342-5236

This report must be preceded or accompanied by a current prospectus of the
Templeton Global Infrastructure 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.

413 A98 5/98 [RECYCLE] Printed on recycled paper