Franklin India Growth Fund · Despite some short-term economic concerns at period-end, India was...

Franklin India Growth Fund

APRIL 30, 2011

SEMIANNUAL REPORTAND SHAREHOLDER LETTER

A series of Franklin Templeton International Trust

Sign up for electronic deliveryon franklintempleton.com

I NTERNAT IONAL

Franklin Templeton InvestmentsGain From Our Perspective®

Franklin Templeton’s distinct multi-manager structure combines thespecialized expertise of three world-class investment management groups—Franklin, Templeton and Mutual Series.

Each of our portfolio management groups operates autonomously, relying on its own research and staying true to the unique investment disciplines that underlie its success.

Franklin. Founded in 1947, Franklin is a recognized leader in fixed income investingand also brings expertise in growth- and value-style U.S. equity investing.

Templeton. Founded in 1940, Templeton pioneered international investing and, in 1954, launched what has become the industry’s oldest global fund. Today, withoffices in over 25 countries, Templeton offers investors a truly global perspective.

Mutual Series. Founded in 1949, Mutual Series is dedicated to a unique style of value investing, searching aggressively for opportunity among what it believes are undervalued stocks, as well as arbitrage situations and distressed securities.

Because our management groups work independently and adhere to differentinvestment approaches, Franklin, Templeton and Mutual Series funds typicallyhave distinct portfolios. That’s why our funds can be used to build trulydiversified allocation plans covering every major asset class.

At Franklin Templeton Investments, we seek to consistently provide investors with exceptional risk-adjusted returns over the long term, as well as the reliable,accurate and personal service that has helped us become one of the most trustednames in financial services.

TRUE DIVERSIFICATION

RELIABILITY YOU CAN TRUST

SPECIALIZED EXPERTISE

MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS

Not part of the semiannual report

Not part of the semiannual report | 1

Shareholder LetterDear Shareholder:

During the six months ended April 30, 2011, expanding global economiesgenerally maintained their forward momentum despite significant pressures thatincluded surging commodity prices and government debt overload on severalfronts. In this environment, global stock markets generally rose as investorsmaintained their confidence while continuing to focus on the improved healthof corporate balance sheets and a steady stream of positive corporate earningsresults. Indian stocks, however, were relatively weak as concerns about thecountry’s moderating economic growth and rising inflation weighed on investorsentiment.

Franklin India Growth Fund’s semiannual report goes into greater detail aboutprevailing conditions during the period under review. In addition, you will findFund performance data, financial information and a discussion from the port-folio managers. Please remember all securities markets fluctuate, as do mutualfund share prices.

If you would like more frequent updates, franklintempleton.com provides dailyprices, monthly performance figures, portfolio holdings and other information.You can also access your account, buy and sell shares, read timely articles, andfind helpful financial planning tools. We hope you will take advantage of theseonline services.

In a constantly changing market environment, we adhere to our disciplinedapproach as we manage the Fund, keeping in mind the trust you have placedin us. As always, we recommend investors consult their financial advisors andreview their portfolios to design a long-term strategy and portfolio allocationthat meet their individual needs, goals and risk tolerance. We firmly believemost people benefit from professional advice and that advice is invaluable asinvestors navigate current market conditions.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Semiannual Report

Franklin India Growth Fund . . . . . . . . . . . . . 3

Performance Summary . . . . . . . . . . . . . . . . 7

Your Fund’s Expenses . . . . . . . . . . . . . . . . . 10

Financial Highlights . . . . . . . . . . . . . . . . . . 12

Financial Statements . . . . . . . . . . . . . . . . . 15

Notes to Financial Statements . . . . . . . . . . 18

FT (Mauritius) Offshore Investments Limited 26

Shareholder Information . . . . . . . . . . . . . . . 40

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

Contents

We thank you for investing with Franklin Templeton, welcome your questionsand comments, and look forward to serving your investment needs in theyears ahead.

Sincerely,

Edward B. JamiesonPresident and Chief Executive Officer – Investment ManagementFranklin Templeton International Trust

This letter reflects our analysis and opinions as of April 30, 2011. The information is not a complete analysis of every aspect of any market, country, industry, security or fund. Statements of fact are from sources considered reliable.

2 | Not part of the semiannual report

Semiannual Report | 3

This semiannual report for Franklin India Growth Fund covers the periodended April 30, 2011.

Performance Overview

For the six months under review, Franklin India Growth Fund – Class A had a -2.32% cumulative total return. The Fund performed better than the -5.56%total return of its benchmark, the Morgan Stanley Capital International (MSCI)India Index, which is designed to measure stock market performance in India.2

You can find more of the Fund’s performance data in the Performance Summarybeginning on page 7.

Economic and Market Overview

During the six months under review, the Indian economy continued to exhibitstrength, with gross domestic product growing 7.8% year-over-year in the firstquarter of 2011, according to the country’s Central Statistical Organisation.However, this growth rate was soft compared to the previous four quartersdue to a deceleration in industrial activity. For India’s 2011 fiscal year (endedMarch 31, 2011), the Central Statistical Organisation estimated economicgrowth of 8.5% over fiscal year 2010.

Semiannual Report

Franklin India Growth FundYour Fund’s Goal and Main Investments: Franklin India Growth Fund seeks long-term

capital appreciation by investing under normal market conditions at least 80% of its net assets in secu-

rities of “Indian companies,” which are defined as those organized under the laws of, with a principal

office in, or for which the principal trading market for their securities is in India, that derive 50% or more

of total revenue or profit from goods or services produced or sales made in India, or that have 50% or

more of their assets in India.1

1. The Fund currently invests indirectly in Indian companies through FT (Mauritius) Offshore Investments Limited, awholly owned, collective investment vehicle registered in the Republic of Mauritius.

2. Source: MSCI, Inc. The index is unmanaged and includes reinvested dividends. One cannot invest directly in anindex, and an index is not representative of the Fund’s portfolio.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’sStatement of Investments (SOI). The SOI begins on page 27.

Performance data represent

past performance, which does

not guarantee future results.

Investment return and principal

value will fluctuate, and you may

have a gain or loss when you sell

your shares. Current performance

may differ from figures shown.

Please visit franklintempleton.comor call (800) 342-5236 for most

recent month-end performance.

4 | Semiannual Report

Portfolio Breakdown1

Based on Total Net Assets as of 4/30/11

Commercial Banks

IT Services

Oil, Gas & Consumable Fuels

Wireless Telecommunication Services5

15.2%

16.2%

9.8%

7.5%

6.4%Metals & Mining

Diversified Financial Services

Chemicals

Gas Utilities

Machinery

Media

Electrical Equipment

Automobiles

Pharmaceuticals

Auto Components

Other

Short-Term Investments & Other Net Assets

5.1%

4.0%

3.5%

2.7%

2.5%

2.4%

2.2%

2.1%

8.8%

8.2%

3.4%

Persistently high inflation levels, however, led the Reserve Bank of India (RBI)to maintain a tightening monetary policy bias. From the low rates reachedduring the global financial crisis, the RBI has raised the repo rate, the interestrate at which banks borrow from the RBI, by 200 basis points (100 basis pointsequal one percentage point) to 6.75% at period-end. Despite the rising ratesand input costs, Indian companies managed the reporting period quite well,helped by continued demand for goods and services.

Along with those of other emerging markets, Indian stocks experienced a sell-off by foreign portfolio investors in the early part of 2011. Additionally,concerns about a series of graft allegations at the government and institutionallevels weighed on investor sentiment. Small- and mid-capitalization stocks suf-fered steeper losses than large-capitalization stocks. Real estate and capitalgoods stocks were the chief decliners, while technology and consumer staplesstocks registered gains. Overall, however, net foreign institutional inflows dur-ing the period under review totaled $5.4 billion.3

Despite some short-term economic concerns at period-end, India was still poisedfor longer term growth. A well-balanced growth model combined with a man-ageable fiscal deficit, a high savings rate and a large young population bode wellfor the economy. Structural growth drivers such as a rise in income levels andincreased government and corporate spending should support higher growth.The government’s continued focus on agricultural and rural sectors could helpdiversify India’s economic drivers and add to the economy’s ability to navigatethrough a global slowdown.

Investment Strategy

We are research-driven, fundamental investors pursuing a growth strategy. As bottom-up investors focusing primarily on individual securities, we seek toinvest in companies whose current market price, in our opinion, does not reflectfuture growth prospects. We choose companies that have identifiable driversof future earnings growth and that present, in our opinion, the best trade-offbetween earnings growth potential, business and financial risk, and valuation.We rely on a team of analysts to help provide in-depth industry expertise anduse both qualitative and quantitative analyses to evaluate companies for distinct and sustainable competitive advantages through leading-edge products,intellectual property, product positioning, unique market niches, brand iden-tity, solid management teams, strong balance sheets, above-average or risingmargins, and strong returns on capital invested in the business. In choosing

3. Source: Securities and Exchange Board of India.


equity investments, we also consider such factors as the company’s financialstrength, management’s expertise, the company’s growth potential within theindustry, and the industry’s growth potential.

Manager’s Discussion

Our overall strategy has been to build a diversified portfolio of companiesthat cover the full market capitalization spectrum and that we think are wellpositioned to take advantage of Indian economic growth. In particular, webelieve companies that could benefit from structural growth drivers such asrising consumer spending and infrastructure investment may provide favor-able growth opportunities.

During the period under review, the Fund’s overall telecommunication servicesand information technology (IT) sectors benefited absolute performance.4 Somestocks in the telecommunication services sector rebounded from lows touchedearlier in 2010 resulting from concerns of increasing competitive intensity andregulatory pressures. Bharti Airtel, one of India’s largest telecommunicationcompanies, was among the chief contributors. The firm has maintained itsmarket share through challenging times and, in our view, is well positioned totake advantage of growth opportunities in the Indian market. We think its recentexpansion into Africa’s emerging telecommunications market further added toits growth potential. Another sizable holding, Tata Consultancy Services, oneof India’s largest IT services companies, also delivered strong performance overthe reporting period, aided by recovery in global IT spending.

Our share purchase in Coal India positively contributed to performance. Thecompany, India’s largest coal producer, completed its initial public offering inOctober 2010. Various drivers, such as rising consumption of coal, largereserves and a monopolistic position in a tight coal market should, in our view,help the company perform well.

In contrast, the Fund’s returns were hampered mainly by our financials andindustrials sector holdings.5 Rising inflation and subsequent interest rateincreases raised concerns about financials sector profitability, while a slow-down in capital spending hurt performance of industrials sector companies.On an individual stock basis, Reliance Industries was a major detractor fromFund performance. One of India’s biggest conglomerates, the company explores,

4. The telecommunications services sector comprises wireless telecommunication services in the SOI. The IT sectorcomprises IT services in the SOI.

5. The financials sector comprises commercial banks and diversified financial services in the SOI. The industrials sector comprises construction and engineering, electrical equipment and machinery in the SOI.

Top 10 Equity Holdings1

4/30/11

Company % of TotalSector/Industry Net Assets

Reliance Industries Ltd. 7.2%Oil, Gas & Consumable Fuels

Bharti Airtel Ltd. 5.8%Wireless Telecommunication Services

Infosys Technologies Ltd. 5.5%IT Services

ICICI Bank Ltd. 5.5%Commercial Banks

HDFC Bank Ltd. 3.8%Commercial Banks

GAIL India Ltd. 3.5%Gas Utilities

Kotak Mahindra Bank Ltd. 3.4%Diversified Financial Services

Tata Consultancy Services Ltd. 2.8%IT Services

Cummins India Ltd. 2.7%Machinery

Mahindra & Mahindra Ltd. 2.4%Automobiles


develops and produces oil and gas, refines petroleum products, produces andmarkets petrochemical products, produces textiles, and operates retail stores.Uncertainty about the increase in gas production from its key production blockin the Krishna-Godavari basin weighed on stock performance during the periodunder review. Other key detractors included power equipment manufacturingcompany Crompton Greaves and construction and engineering company Larsen& Toubro. Notwithstanding their recent stock declines, we remained positiveon the medium- to long-term performance of these companies and continuedto hold these positions at period-end.

Thank you for your continued participation in Franklin India Growth Fund.We look forward to serving your future investment needs.

Stephen H. Dover, CFA

Purav A. Jhaveri, CFA, FRM

Portfolio Management TeamFranklin India Growth Fund

CFA® is a trademark owned by CFA Institute.

The foregoing information reflects our analysis, opinions and portfolio holdings as of April 30, 2011, the end of thereporting period. The way we implement our main investment strategies and the resulting portfolio holdings maychange depending on factors such as market and economic conditions. These opinions may not be relied upon asinvestment advice or an offer for a particular security. The information is not a complete analysis of every aspectof any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable,but the investment manager makes no representation or warranty as to their completeness or accuracy. Althoughhistorical performance is no guarantee of future results, these insights may help you understand our investmentmanagement philosophy.

Performance Summary as of 4/30/11


Your dividend income will vary depending on dividends or interest paid by securities in the Fund’sportfolio, adjusted for operating expenses of each class. Capital gain distributions are net profitsrealized from the sale of portfolio securities. The performance table does not reflect any taxes thata shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gainson the sale of Fund shares. Total return reflects reinvestment of the Fund’s dividends and capital gaindistributions, if any, and any unrealized gains or losses.

Price and Distribution Information

Class A (Symbol: FINGX) Change 4/30/11 10/31/10

Net Asset Value (NAV) -$0.53 $10.81 $11.34

Distributions (11/1/10–4/30/11)

Long-Term Capital Gain $0.2736

Class C (Symbol: FINDX) Change 4/30/11 10/31/10




Advisor Class (Symbol: FIGZX) Change 4/30/11 10/31/10




Performance Summary (continued)


Performance1

Cumulative total return excludes sales charges. Average annual total returns and value of $10,000 investment includemaximum sales charges. Class A: 5.75% maximum initial sales charge; Class C: 1% contingent deferred sales charge in first year only; Advisor Class: no sales charges.

Class A 6-Month 1-Year 3-Year Inception (1/31/08)

Cumulative Total Return2 -2.32% +11.89% +20.29% +11.50%

Average Annual Total Return3 -7.92% +5.49% +4.26% +1.54%

Value of $10,000 Investment4 $9,208 $10,549 $11,332 $10,509

Avg. Ann. Total Return (3/31/11)5 +7.65% +7.17% +1.58%

Total Annual Operating Expenses6

Without Waiver 2.27%

With Waiver 1.70%

Class C 6-Month 1-Year 3-Year Inception (1/31/08)







With Waiver 2.40%

Advisor Class 6-Month 1-Year 3-Year Inception (1/31/08)







With Waiver 1.40%

Performance data represent past performance, which does not guarantee future results. Investment return and principalvalue will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

The investment manager and administrator have contractually agreed to waive or assume certain expenses so that thecommon expenses (including the expenses of FT (Mauritius) Offshore Investments Limited but excluding Rule 12b-1 fees) for each class of the Fund do not exceed 1.40% (other than certain nonroutine expenses) until 2/29/12.

Performance Summary (continued)


Endnotes

Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investmentsin developing markets involve heightened risks related to the same factors, in addition to risks associated with these companies’ smaller size,lesser liquidity and the potential lack of established legal, political, business and social frameworks to support securities markets in the coun-tries in which they operate. The Fund may also experience greater volatility than a fund that is more broadly diversified geographically. TheFund is designed for the aggressive portion of a well-diversified portfolio. The manager applies various techniques and analyses in makinginvestment decisions for the Fund, but there can be no guarantee that these decisions will produce the desired results. The Fund’s prospectusalso includes a description of the main investment risks.

Class C: These shares have higher annual fees and expenses than Class A shares.

Advisor Class: Shares are available to certain eligible investors as described in the prospectus.

1. If the manager and administrator had not waived fees, the Fund’s total returns would have been lower.

2. Cumulative total return represents the change in value of an investment over the periods indicated.

3. Average annual total return represents the average annual change in value of an investment over the periods indicated. Six-month return has notbeen annualized.

4. These figures represent the value of a hypothetical $10,000 investment in the Fund over the periods indicated.

5. In accordance with SEC rules, we provide standardized average annual total return information through the latest calendar quarter.

6. Figures are as stated in the Fund’s prospectus current as of the date of this report. In periods of market volatility, assets may decline significantly,causing total annual Fund operating expenses to become higher than the figures shown.

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs:

• Transaction costs, including sales charges (loads) on Fund purchases; and

• Ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and otherFund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses.

The following table shows ongoing costs of investing in the Fund and can help you understandthese costs and compare them with those of other mutual funds. The table assumes a $1,000investment held for the six months indicated.

Actual Fund Expenses

The first line (Actual) for each share class listed in the table provides actual account values andexpenses. The “Ending Account Value” is derived from the Fund’s actual return, which includesthe effect of Fund expenses.

You can estimate the expenses you paid during the period by following these steps. Of course,your account value and expenses will differ from those in this illustration:

1. Divide your account value by $1,000.If an account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6.

2. Multiply the result by the number under the heading “Expenses Paid During Period.”If Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Information in the second line (Hypothetical) for each class in the table can help you compareongoing costs of investing in the Fund with those of other mutual funds. This information may not be used to estimate the actual ending account balance or expenses you paid during the period.The hypothetical “Ending Account Value” is based on the actual expense ratio for each class andan assumed 5% annual rate of return before expenses, which does not represent the Fund’s actualreturn. The figure under the heading “Expenses Paid During Period” shows the hypotheticalexpenses your account would have incurred under this scenario. You can compare this figure withthe 5% hypothetical examples that appear in shareholder reports of other funds.


Your Fund’s Expenses (continued)


Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflectany transaction costs, such as sales charges. Therefore, the second line for each class is useful incomparing ongoing costs only, and will not help you compare total costs of owning different funds.In addition, if transaction costs were included, your total costs would have been higher. Please referto the Fund prospectus for additional information on operating expenses.

Beginning Account Ending Account Expenses Paid DuringClass A Value 11/1/10 Value 4/30/11 Period* 11/1/10–4/30/11

Actual $1,000 $ 976.80 $ 8.33

Hypothetical (5% return before expenses) $1,000 $1,016.36 $ 8.50

Class C

Actual $1,000 $ 973.70 $11.74

Hypothetical (5% return before expenses) $1,000 $1,012.89 $11.98

Advisor Class

Actual $1,000 $ 978.70 $ 6.87

Hypothetical (5% return before expenses) $1,000 $1,017.85 $ 7.00

*Expenses are calculated using the most recent six-month expense ratio, net of expense waivers, annualized for each class (A: 1.70%; C: 2.40%;and Advisor: 1.40%), multiplied by the average account value over the period, multiplied by 181/365 to reflect the one-half year period.

Franklin Templeton International TrustFinancial Highlights

12 | The accompanying notes are an integral part of these financial statements. | Semiannual Report


Six Months EndedApril 30, 2011 Year Ended October 31,

Class A (unaudited) 2010 2009 2008a

Per share operating performanceb

(for a share outstanding throughout the period)

Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.34 $ 8.24 $4.98 $10.00

Income from investment operationsc:

Net investment income (loss)d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.07) (0.03) (0.02) (0.01)

Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . (0.19) 3.19 3.28 (5.01)

Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.26) 3.16 3.26 (5.02)

Less distributions from:

Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.04) — —

Net realized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.27) (0.02) — —

Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.27) (0.06) — —

Redemption feese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — —f

Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.81 $11.34 $8.24 $ 4.98

Total returng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.32)% 38.54% 65.46% (50.20)%

Ratios to average net assetsb,h

Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . 2.27% 2.27% 2.55% 2.78%

Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . 1.70% 1.70% 1.70%i 1.70%i

Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.25)% (0.31)% (0.40)% (0.15)%

Supplemental data

Net assets, end of period (000’s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,732 $37,392 $11,310 $3,596

Portfolio turnover ratej . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.42% 83.21% 72.23% 45.10%

aFor the period January 31, 2008 (commencement of operations) to October 31, 2008.bThe per share amounts and ratios reflect income and expenses of the Portfolio.cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases ofthe Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.dBased on average daily shares outstanding.eEffective September 1, 2008, the redemption fee was eliminated.fAmount rounds to less than $0.01 per share.gTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.hRatios are annualized for periods less than one year.iBenefit of expense reduction rounds to less than 0.01%.jRepresents the Portfolio’s rate of turnover.

Franklin Templeton International TrustFinancial Highlights (continued)

Semiannual Report | The accompanying notes are an integral part of these financial statements. | 13



Class C (unaudited) 2010 2009 2008a





Net investment income (loss)d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.10) (0.09) (0.06) (0.04)




Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.02) — —



Redemption feese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — —f


Total returng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.63)% 37.53% 64.11% (50.40)%




Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.95)% (1.01)% (1.10)% (0.85)%

Supplemental data

Net assets, end of period (000’s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,053 $10,878 $3,768 $947


aFor the period January 31, 2008 (commencement of operations) to October 31, 2008.bThe per share amounts and ratios reflect income and expenses of the Portfolio.cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases ofthe Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.dBased on average daily shares outstanding.eEffective September 1, 2008, the redemption fee was eliminated.fAmount rounds to less than $0.01 per share.gTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.hRatios are annualized for periods less than one year.iBenefit of expense reduction rounds to less than 0.01%.jRepresents the Portfolio’s rate of turnover.

Franklin Templeton International TrustFinancial Highlights (continued)




Advisor Class (unaudited) 2010 2009 2008a





Net investment income (loss)d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.05) —e —e 0.01




Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.05) —e —



Redemption feesf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — —e


Total returng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.13)% 38.91% 65.97% (50.10)%




Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.95)% (0.01)% (0.10)% 0.15%

Supplemental data



aFor the period January 31, 2008 (commencement of operations) to October 31, 2008.bThe per share amounts and ratios reflect income and expenses of the Portfolio.cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases ofthe Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.dBased on average daily shares outstanding.eAmount rounds to less than $0.01 per share.fEffective September 1, 2008, the redemption fee was eliminated.gTotal return is not annualized for periods less than one year.hRatios are annualized for periods less than one year.iBenefit of expense reduction rounds to less than 0.01%.jRepresents the Portfolio’s rate of turnover.

Franklin Templeton International TrustFinancial Statements


Statement of Assets and LiabilitiesApril 30, 2011 (unaudited)

Franklin India Growth

FundAssets:

Investments in FT (Mauritius) Offshore Investments Limited (Note 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,110,675Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,636Receivables from capital shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407,715Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,561Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,655,624

Liabilities:Payables:

Capital shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,028Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,234Reports to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,335Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,935

Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,015

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235,547

Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,420,077

Net assets consist of:Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $83,884,059Undistributed net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,100,169)Net unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,915,148Accumulated net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (278,961)

Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,420,077

Class A:Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,731,997

Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,139,705

Net asset value per sharea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.81

Maximum offering price per share (net asset value per share ÷ 94.25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.47

Class C:Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,052,749


Net asset value and maximum offering price per sharea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.59

Advisor Class:Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,635,331


Net asset value and maximum offering price per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.90

aRedemption price is equal to net asset value less contingent deferred sales charges, if applicable.

Franklin Templeton International TrustFinancial Statements (continued)


Statement of Operationsfor the six months ended April 30, 2011 (unaudited)

Franklin India Growth

FundNet investment income allocated from FT (Mauritius) Offshore Investments Limited:

Dividends and interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 213,417Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (582,215)

Net investment income allocated from FT (Mauritius) Offshore Investments Limited . . . . . . . . . . . . . . . . . . (368,798)

Expenses:Management fees (Note 3a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,821Administrative fees (Note 3b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,056Distribution fees: (Note 3c)

Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,132Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,481

Transfer agent fees (Note 3e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,460Custodian fees (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 666Reports to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,854Registration and filing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,830Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,267Trustees’ fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,876Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,656

Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475,099Expenses waived/paid by affiliates (Note 3f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (270,301)

Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204,798

Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (573,596)

Realized and unrealized gains (losses) on investments allocated from FT (Mauritius) Offshore Investments Limited:Net realized gain (loss) from:

Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,442,914Foreign currency transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (378,197)

Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,064,717

Net change in unrealized appreciation (depreciation) on:Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,993,411)Translation of assets and liabilities denominated in foreign currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,790

Net change in unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,971,621)

Net realized and unrealized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,906,904)

Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(3,480,500)

Franklin Templeton International TrustFinancial Statements (continued)


Statements of Changes in Net Assets


Six Months EndedApril 30, 2011 Year Ended

(unaudited) October 31, 2010Increase (decrease) in net assets:

Operations:Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (573,596) $ (131,899)Net realized gain (loss) from investments and foreign currency transactions . . . . . . . . . . . . 1,064,717 12,268,235Net change in unrealized appreciation (depreciation) on investments and translation of other assets and liabilities denominated in foreign currencies . . . . . . . . . . . . . . . . . . . . . (3,971,621) 9,741,127

Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . (3,480,500) 21,877,463

Distributions to shareholders from:Net investment income:

Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (56,742)Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (7,660)Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (378,874)

Net realized gains:Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,055,684) (28,775)Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (299,833) (9,764)Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,157,500) (145,648)

Total distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,513,017) (627,463)

Capital share transactions: (Note 2)Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,641,328 19,513,370Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,814,563 5,120,596Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,195,369 (29,535,856)

Total capital share transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,651,260 (4,901,890)

Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,657,743 16,348,110Net assets:

Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,762,334 72,414,224

End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,420,077 $ 88,762,334

Undistributed net investment income (loss) included in net assets:End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1,100,169) $ (526,573)


Franklin Templeton International TrustNotes to Financial Statements (unaudited)


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Templeton International Trust (Trust) is registered under the Investment Company Actof 1940, as amended, (1940 Act) as an open-end investment company, consisting of three separatefunds. The Franklin India Growth Fund (Fund) is included in this report. The financial statementsof the remaining funds in the Trust are presented separately. The Fund offers three classes ofshares: Class A, Class C, and Advisor Class. Each class of shares differs by its initial sales load,contingent deferred sales charges, distribution fees, voting rights on matters affecting a single classand its exchange privilege.

The Fund operates using a “master fund/feeder fund” structure and invests indirectly in thesecurities of Indian companies through FT (Mauritius) Offshore Investments Limited (Portfolio),an entity registered with and regulated by the Mauritius Financial Services Commission, whichshares the same investment objective as the Fund. The accounting policies of the Portfolio,including the Portfolio’s security valuation policies, will directly affect the recorded value of the Fund’s investment in the Portfolio. The financial statements of the Portfolio, including theStatement of Investments, are included elsewhere in this report and should be read in conjunc-tion with the Fund’s financial statements. At April 30, 2011, the Fund owned 100% of theoutstanding shares of the Portfolio.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund’s investment in the Portfolio shares is valued at the Portfolio’s net asset value pershare. Valuation of securities by the Portfolio is discussed in Note 1(a) of the Portfolio’s Notesto Financial Statements, which are included elsewhere in this report.

b. Income and Deferred Taxes

It is the Fund’s policy to qualify as a regulated investment company under the Internal RevenueCode. The Fund intends to distribute to shareholders substantially all of its taxable income andnet realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required. The Fund files U.S. income tax returns as well as taxreturns in certain other jurisdictions. The Fund records a provision for taxes in its financialstatements including penalties and interest, if any, for a tax position taken on a tax return (orexpected to be taken) when it fails to meet the more likely than not (a greater than 50% proba-bility) threshold and based on the technical merits, the tax position may not be sustained uponexamination by the tax authorities. As of April 30, 2011, and for all open tax years, the Fundhas determined that no provision for income tax is required in the Fund’s financial statements.Open tax years are those that remain subject to examination and are based on each tax jurisdic-tion statute of limitation.


Franklin Templeton International TrustNotes to Financial Statements (unaudited) (continued)


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

b. Income and Deferred Taxes (continued)

The Fund’s investment in the Portfolio may be subject to income and withholding taxes inMauritius and/or India which are discussed in Note 1(c) of the Portfolio’s Notes to FinancialStatements.

c. Security Transactions, Investment Income, Expenses and Distributions

Security transactions, including investments in the Portfolio, are accounted for on trade date.Realized gains and losses on security transactions are determined on a specific identificationbasis. Interest income and estimated expenses are accrued daily. Dividend income is recorded onthe ex-dividend date. Distributions to shareholders are recorded on the ex-dividend date and aredetermined according to income tax regulations (tax basis). Distributable earnings determined ona tax basis may differ from earnings recorded in accordance with accounting principles generallyaccepted in the United States of America. These differences may be permanent or temporary.Permanent differences are reclassified among capital accounts to reflect their tax character. Thesereclassifications have no impact on net assets or the results of operations. Temporary differencesare not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the funds based on the ratio of netassets of each fund to the combined net assets of the Trust. Fund specific expenses are chargeddirectly to the fund that incurred the expense.

Realized and unrealized gains and losses and net investment income, not including class specificexpenses, are allocated daily to each class of shares based upon the relative proportion of netassets of each class. Differences in per share distributions, by class, are generally due to differ-ences in class specific expenses.

The Fund records its proportionate share of the Portfolio’s income, expenses and realized andunrealized gains and losses daily. In addition, the Fund accrues its own expenses.

d. Accounting Estimates

The preparation of financial statements in accordance with accounting principles generallyaccepted in the United States of America requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities at the date of the financial statements andthe amounts of income and expenses during the reporting period. Actual results could differ fromthose estimates.





e. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and directors are indemnified by the Trustagainst certain liabilities arising out of the performance of their duties to the Trust. Additionally,in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with serv-ice providers that contain general indemnification clauses. The Trust’s maximum exposure underthese arrangements is unknown as this would involve future claims that may be made against theTrust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. SHARES OF BENEFICIAL INTEREST

At April 30, 2011, there were an unlimited number of shares authorized (without par value).Transactions in the Fund’s shares were as follows:

Six Months Ended Year EndedApril 30, 2011 October 31, 2010

Shares Amount Shares AmountClass A Shares:

Shares sold . . . . . . . . . . . . . . . . . . . . . 2,164,218 $ 23,270,091 2,785,953 $ 27,840,929Shares issued in reinvestment

of distributions . . . . . . . . . . . . . . . . . 87,905 937,944 8,123 71,322Shares redeemed . . . . . . . . . . . . . . . . . (1,409,782) (14,566,707) (869,288) (8,398,881)

Net increase (decrease) . . . . . . . . . . . . 842,341 $ 9,641,328 1,924,788 $ 19,513,370

Class C Shares:Shares sold . . . . . . . . . . . . . . . . . . . . . 516,085 $ 5,439,097 716,391 $ 7,047,086Shares issued in reinvestment of

distributions . . . . . . . . . . . . . . . . . . . 24,994 261,935 1,609 13,981Shares redeemed . . . . . . . . . . . . . . . . . (283,426) (2,886,469) (205,233) (1,940,471)

Net increase (decrease) . . . . . . . . . . . . 257,653 $ 2,814,563 512,767 $ 5,120,596

Advisor Class Shares:Shares sold . . . . . . . . . . . . . . . . . . . . . 1,726,984 $ 19,046,965 3,377,643 $ 32,104,309Shares issued in reinvestment of

distributions . . . . . . . . . . . . . . . . . . . 102,029 1,096,811 49,605 437,019Shares redeemed . . . . . . . . . . . . . . . . . (1,555,255) (15,948,407) (6,803,521) (62,077,184)

Net increase (decrease) . . . . . . . . . . . . 273,758 $ 4,195,369 (3,376,273) $(29,535,856)




3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company for various subsidiaries that together arereferred to as Franklin Templeton Investments. Certain officers and trustees of the Trust are also officers and/or directors of the Portfolio and of the following subsidiaries:

Subsidiary Affiliation

Franklin Advisers, Inc. (Advisers) Investment managerFranklin Templeton Asset Management (India) Private Limited (FT India) Investment managerFranklin Templeton Services, LLC (FT Services) Administrative managerFranklin Templeton Distributors, Inc. (Distributors) Principal underwriterFranklin Templeton Investor Services, LLC (Investor Services) Transfer agent

a. Management Fees

The Fund pays an investment management fee to Advisers equal to 20% of the total managementfee with the remainder to be paid by the Portfolio. The total management fee is paid based onthe average daily net assets of the Fund as follows:

Annualized Fee Rate Net Assets

1.250% Up to and including $1 billion1.200% Over $1 billion, up to and including $5 billion1.150% Over $5 billion, up to and including $10 billion1.100% Over $10 billion, up to and including $15 billion1.050% Over $15 billion, up to and including $20 billion1.000% In excess of $20 billion

Effective May 1, 2011, the total management fee will be paid based on the average daily netassets of the Fund as follows:



Under a subadvisory agreement, FT India, an affiliate of Advisers, provides subadvisory servicesto the Fund. The subadvisory fee is paid by Advisers based on the average daily net assets, and isnot an additional expense of the Fund.




3. TRANSACTIONS WITH AFFILIATES (continued)

b. Administrative Fees

The Fund pays an administrative fee to FT Services of 0.20% per year of the average daily netassets of the Funds.

c. Distribution Fees

The Trust’s Board of Trustees has adopted distribution plans for each share class, with the excep-tion of Advisor Class shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Fund’s Class Areimbursement distribution plan, the Fund reimburses Distributors for costs incurred in connectionwith the servicing, sale and distribution of the Fund’s shares up to the maximum annual planrate. Under the Class A reimbursement distribution plan, costs exceeding the maximum for thecurrent plan year cannot be reimbursed in subsequent periods.

In addition, under the Fund’s Class C compensation distribution plan, the Fund pays Distributorsfor costs incurred in connection with the servicing, sale and distribution of the Fund’s shares upto the maximum annual plan rate.

The maximum annual plan rates, based on the average daily net assets, for each class, are as follows:

Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.35%Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%

The Board of Trustees has set the current rate at 0.30% per year for Class A shares until furthernotice and approval by the Board.

d. Sales Charges/Underwriting Agreements

Distributors has advised the Fund of the following commission transactions related to the salesand redemptions of the Fund’s shares for the period:

Sales charges retained net of commissions paid to unaffiliated broker/dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,848

Contingent deferred sales charges retained . . . . . . . . . . . . . . . . . . . $ 3,075

e. Transfer Agent Fees

For the period ended April 30, 2011, the Fund paid transfer agent fees of $53,460, of which$46,174 was retained by Investor Services.





f. Waiver and Expense Reimbursements

Advisers and FT Services have contractually agreed in advance to waive or limit their respectivefees and to assume as their own expense certain expenses otherwise payable by the fund so thatthe common expenses (i.e. a combination of management fees, administrative fees, and otherexpenses, including the Fund’s share of the Portfolio’s allocated expenses, but excluding distribu-tion fees, and acquired fund fees and expenses) for each class of the Fund do not exceed 1.40%(other than certain non-routine expenses or costs, including those relating to litigation, indemni-fication, reorganizations, and liquidations) until February 28, 2012.

4. EXPENSE OFFSET ARRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses.During the period ended April 30, 2011, there were no credits earned.

5. INCOME TAXES

At April 30, 2011, the cost of investments, net unrealized appreciation (depreciation), forincome tax purposes were as follows:

Cost of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75,133,623

Unrealized appreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,918,395Unrealized depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,097,693)

Net unrealized appreciation (depreciation) . . . . . . . . . . . . . . . $15,820,702

The Portfolio is a disregarded entity for United States Federal income tax purposes.

Net investment income (loss) differs for financial statement and tax purposes primarily due todiffering treatments of foreign currency transactions, passive foreign investment company sharesand offering costs.

Net realized gains (losses) differ for financial statement and tax purposes primarily due to differing treatments of wash sales, foreign currency transactions and passive foreign investmentcompany shares.




6. CONCENTRATION OF RISK

Investing in Indian equity securities through the Portfolio may include certain risks and consider-ations not typically associated with investing in U.S. securities, such as fluctuating currency values,less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations(including currency blockage), differing legal standards and changing local and regional economic,political and social conditions, which may result in greater market volatility.

7. CREDIT FACILITY

The Fund, together with other U.S. registered and foreign investment funds (collectively,Borrowers), managed by Franklin Templeton Investments, are borrowers in a joint syndicatedsenior unsecured credit facility totaling $750 million (Global Credit Facility) which matures on January 20, 2012. This Global Credit Facility provides a source of funds to the Borrowersfor temporary and emergency purposes, including the ability to meet future unanticipated orunusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged onany borrowings made by the Fund and other costs incurred by the Fund, pay its share of feesand expenses incurred in connection with the implementation and maintenance of the GlobalCredit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers,including an annual commitment fee of 0.08% based upon the unused portion of the GlobalCredit Facility, which is reflected in other expenses on the Statement of Operations. During theperiod ended April 30, 2011, the Fund did not use the Global Credit Facility.

8. FAIR VALUE MEASUREMENTS

The Fund follows a fair value hierarchy that distinguishes between market data obtained fromindependent sources (observable inputs) and the Fund’s own market assumptions (unobservableinputs). These inputs are used in determining the value of the Fund’s investments and are sum-marized in the following fair value hierarchy:

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associatedwith investing in those securities.




8. FAIR VALUE MEASUREMENTS (continued)

For movements between the levels within the fair value hierarchy, the Fund has adopted a policyof recognizing the transfers as of the date of the underlying event which caused the movement.

The following is a summary of the inputs used as of April 30, 2011, in valuing the Portfolio’sassets and liabilities carried at fair value:

Level 1 Level 2 Level 3 Total

Assets:Investments in Securities:

Equity Investmentsa . . . . . . . . . . . . . . . . . . . . . . . . $90,944,849 $ — $ — $90,944,849Corporate Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 9,476 9,476

Total Investments in Securities . . . . . . . . . . . . . . . $90,944,849 $ — $9,476 $90,954,325

aFor detailed industry descriptions, see the accompanying Statement of Investments.

9. SUBSEQUENT EVENTS

The Fund has evaluated subsequent events through the issuance of the financial statements anddetermined that no events have occurred that require disclosure other than those already disclosedin the financial statements.

FT (Mauritius) Offshore Investments LimitedFinancial Highlights(Expressed in U.S. Dollars)



(unaudited) 2010 2009 2008a

Per share operating performance(for a share outstanding throughout the period)


Income from investment operationsb:

Net investment income (loss)c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.04) 0.02 —d 0.01




Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.08)% 39.47% 66.20% (50.30)%

Ratios to average net assetsf

Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.23% 1.22% 1.37% 1.40%

Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.78)% 0.18% (0.06)% 0.15%

Supplemental data


Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.42% 83.21% 72.23% 45.10%

aFor the period January 31, 2008 (commencement of operations) to October 31, 2008.bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases ofthe Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.cBased on average daily shares outstanding.dAmount rounds to less than $0.01 per share.eTotal return is not annualized for periods less than one year.fRatios are annualized for periods less than one year.

FT (Mauritius) Offshore Investments LimitedStatement of Investments, April 30, 2011 (unaudited)(Expressed in U.S. Dollars)


Shares Value

Common Stocks 91.8%India 91.8%Auto Components 2.1%Bosch Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,264 $ 940,421Exide Industries Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000 1,105,593

2,046,014

Automobiles 2.4%Mahindra & Mahindra Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,000 2,384,634

Chemicals 4.0%Asian Paints Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000 1,692,266Grasim Industries Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,652 2,253,061

3,945,327

Commercial Banks 16.2%Federal Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188,837 1,797,056HDFC Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,000 3,781,550ICICI Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215,000 5,413,258IndusInd Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236,593 1,390,261State Bank of India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000 1,394,717Union Bank of India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 1,083,098Yes Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,000 1,137,533

15,997,473

Construction & Engineering 1.2%Larsen & Toubro Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,000 1,191,520

Construction Materials 1.7%India Cements Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,000 493,390Ultra Tech Cement Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,874 1,175,671

1,669,061

Diversified Financial Services 5.1%Crisil Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,038 1,637,892Kotak Mahindra Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000 3,402,327

5,040,219

Electric Utilities 1.8%Power Grid Corp. of India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 765,000 1,802,949

Electrical Equipment 2.5%Bharat Heavy Electricals Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 904,192Crompton Greaves Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276,052 1,574,098

2,478,290

Food Products 0.9%Nestle India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,835 889,528

Gas Utilities 3.5%GAIL India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325,000 3,493,447

Independent Power Producers & Energy Traders 1.5%NTPC Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367,533 1,511,075

FT (Mauritius) Offshore Investments LimitedStatement of Investments, April 30, 2011 (unaudited) (continued)(Expressed in U.S. Dollars)


Shares Value

Common Stocks (continued)India (continued)IT Services 9.8%Infosys Technologies Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,000 $ 5,450,093Tata Consultancy Services Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,779 2,807,548Wipro Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,000 1,424,359

9,682,000

Machinery 3.4%Cummins India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000 2,705,479Thermax Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 657,892

3,363,371

Media 2.7%a IBN18 Broadcast Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 640,000 1,363,010Jagran Prakashan Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355,370 998,537

aTelevision Eighteen India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,769 340,223

2,701,770

Metals & Mining 6.4%Gujarat Mineral Development Corp. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316,257 997,973Hindalco Industries Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 1,461,191JSW Steel Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000 814,525Steel Authority of India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470,497 1,701,040Tata Steel Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 1,389,108

6,363,837

Oil, Gas & Consumable Fuels 15.2%Bharat Petroleum Corp. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000 1,558,841

aCairn India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,000 1,736,188Coal India Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,000 2,061,326Great Eastern Shipping Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,214 920,835Oil & Natural Gas Corp. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,000 1,675,201Reliance Industries Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000 7,100,305

15,052,696

Personal Products 1.7%Marico Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535,125 1,689,232

Pharmaceuticals 2.2%Cadila Healthcare Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 586,069Dr. Reddy’s Laboratories Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,036 1,240,931Lupin Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,500 371,992

2,198,992

Wireless Telecommunication Services 7.5%Bharti Airtel Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675,000 5,777,652

a Idea Cellular Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,073,828 1,665,762

7,443,414

Total Common Stocks (Cost $74,042,793) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,944,849

FT (Mauritius) Offshore Investments LimitedStatement of Investments, April 30, 2011 (unaudited) (continued)(Expressed in U.S. Dollars)


Principal Amount* Value

Corporate Bonds (Cost $11,484) 0.0%†

Pharmaceuticals 0.0%†

Dr Reddy’s Laboratories Ltd., 9.25%, 3/24/14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,330 INR $ 9,476

Total Investments (Cost $74,054,277) 91.8% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,954,325

Other Assets, less Liabilities 8.2% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,156,350

Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,110,675

See Abbreviations on page 39.

†Rounds to less than 0.1% of net assets.*The principal amount is stated in U.S. dollars unless otherwise indicated.aNon-income producing.

FT (Mauritius) Offshore Investments LimitedFinancial Statements(Expressed in U.S. Dollars)


Statement of Assets and LiabilitiesApril 30, 2011 (unaudited)

Assets:Investments in securities:

Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $74,054,277

Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $90,954,325Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,251Foreign currency, at value (cost $8,360,081) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,375,878Receivables from dividends and interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,132

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,408,586

Liabilities:Payables:Investment securities purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167,420Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,491Custodian fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,470

Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,530

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297,911

Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,110,675

Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,788,946

Net asset value per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.28

FT (Mauritius) Offshore Investments LimitedFinancial Statements (continued)(Expressed in U.S. Dollars)


Statement of Operationsfor the six months ended April 30, 2011 (unaudited)

Investment income:Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 213,329Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Total investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213,417

Expenses:Management fees (Note 3a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475,302Administrative fees (Note 3b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,185Custodian fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,728Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,125Directors’ fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,055Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,820

Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 582,215

Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (368,798)

Realized and unrealized gains (losses):Net realized gain (loss) from:

Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,442,914Foreign currency transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (378,197)

Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,064,717

Net change in unrealized appreciation (depreciation) on:Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,993,411)Translation of other assets and liabilities denominated in foreign currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,790

Net change in unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,971,621)

Net realized and unrealized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,906,904)

Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(3,275,702)

FT (Mauritius) Offshore Investments LimitedFinancial Statements (continued)(Expressed in U.S. Dollars)


Statements of Changes in Net Assets

Six Months EndedApril 30, 2011 Year Ended

(unaudited) October 31, 2010Increase (decrease) in net assets:

Operations:Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (368,798) $ 149,993Net realized gain (loss) from investments and foreign currency transactions . . . . . . . . . . . . 1,064,717 12,268,235Net change in unrealized appreciation (depreciation) on investments and translation of other assets and liabilities denominated in foreign currencies . . . . . . . . . . . . . . . . . . . . . (3,971,621) 9,741,127

Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . . (3,275,702) 22,159,355

Capital share transactions (Note 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,161,432 (6,204,925)

Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,885,730 15,954,430Net assets:

Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,224,945 72,270,515

End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,110,675 $88,224,945


FT (Mauritius) Offshore Investments LimitedNotes to Financial Statements (unaudited)(Expressed in U.S. Dollars)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

FT (Mauritius) Offshore Investments Limited (Portfolio) is registered with and regulated by the Mauritius Financial Services Commission. The Portfolio was formed for the purpose of facilitating the Franklin India Growth Fund’s (Fund) purchase of securities of a wide selection of Indian companies, consistent with the Fund’s investment strategies and has elected to betreated as a disregarded entity for United States federal income tax purposes.

At April 30, 2011, the Fund owned 100% of the Portfolio.

The following summarizes the Portfolio’s significant accounting policies.

a. Financial Instrument Valuation

The Portfolio’s investments in securities and other financial instruments are carried at fair valuedaily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Under proce-dures approved by the Fund’s Board of Trustees, the Portfolio may utilize independent pricingservices, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities listed on an exchange or on the NASDAQ National Market System are valuedat the last quoted sale price or the official closing price of the day, respectively. Foreign equitysecurities are valued as of the close of trading on the foreign stock exchange on which the secu-rity is primarily traded, or the NYSE, whichever is earlier. The value is then converted into itsU.S. dollar equivalent at the foreign exchange rate in effect at the close of the NYSE on the daythat the value of the security is determined. Over-the-counter securities are valued within therange of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market.Certain equity securities are valued based upon fundamental characteristics or relationships tosimilar securities.

The Portfolio follows the Fund’s procedures to determine the fair value of securities and otherfinancial instruments for which market prices are not readily available or which may not be reli-ably priced. Under these procedures, the Portfolio primarily employs a market-based approachwhich may use related or comparable assets or liabilities, recent transactions, market multiples,book values, and other relevant information for the investment to determine the fair value of theinvestment. The Portfolio may also use an income-based valuation approach in which the antici-pated future cash flows of the investment are discounted to calculate fair value. Discounts mayalso be applied due to the nature or duration of any restrictions on the disposition of the invest-ments. Due to the inherent uncertainty of valuations of such investments, the fair values maydiffer significantly from the values that would have been used had an active market existed.


FT (Mauritius) Offshore Investments LimitedNotes to Financial Statements (unaudited) (continued)(Expressed in U.S. Dollars)


a. Financial Instrument Valuation (continued)

Trading in securities on foreign securities stock exchanges and over-the-counter markets may becompleted before the daily close of business on the NYSE. Occasionally, events occur betweenthe time at which trading in a foreign security is completed and the close of the NYSE that mightcall into question the reliability of the value of a portfolio security held by the Portfolio. As aresult, differences may arise between the value of the Portfolio’s portfolio securities as deter-mined at the foreign market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for these differences, the investment manager monitors pricemovements following the close of trading in foreign stock markets through a series of countryspecific market proxies (such as baskets of American Depository Receipts, futures contracts andexchange traded funds). These price movements are measured against established trigger thresh-olds for each specific market proxy to assist in determining if an event has occurred that may callinto question the reliability of the values of the foreign securities held by the Portfolio. If such anevent occurs, the securities may be valued using fair value procedures, which may include the useof independent pricing services.

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are trans-lated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on thedate of valuation. The Portfolio may enter into foreign currency exchange contracts to facilitatetransactions denominated in a foreign currency. Purchases and sales of securities, income andexpense items denominated in foreign currencies are translated into U.S. dollars at the exchangerate in effect on the transaction date. Portfolio securities and assets and liabilities denominatedin foreign currencies contain risks that those currencies will decline in value relative to the U.S.dollar. Occasionally, events may impact the availability or reliability of foreign exchange ratesused to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchangerate will be valued at fair value using procedures established and approved by the Fund’s Boardof Trustees.

The Portfolio does not separately report the effect of changes in foreign exchange rates fromchanges in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments on the Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains orlosses realized between the trade and settlement dates on securities transactions and the differ-ence between the recorded amounts of dividends, interest, and foreign withholding taxes and theU.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchangegains and losses arise from changes in foreign exchange rates on foreign denominated assets andliabilities other than investments in securities held at the end of the reporting period.




c. Income Taxes

The Portfolio conducts its investment activities in India as a tax resident of Mauritius and expectsto obtain benefits under the double taxation treaty between Mauritius and India (Treaty). Toobtain benefits under the Treaty, the Portfolio must meet certain tests and conditions, includingthe establishment of Mauritius tax residence and related requirements. The Portfolio has obtaineda certificate from the Mauritius tax authorities and believes that such certification is evidencethat it is a resident of Mauritius under the Treaty. A company which is a tax resident in Mauritiusunder the Treaty and has no branch or permanent establishment in India, will not be subject tocapital gains tax in India on the sale of Indian securities but is subject to Indian withholding taxon interest earned on Indian securities at the rate of 21.115% (which includes surcharges). Thereis no withholding tax in India in respect of dividends paid by Indian companies and such dividendsare exempt in the hands of the shareholders.

The Portfolio holds a Category 1 Global Business License for the purpose of the FinancialServices Act 2007 and under current laws and regulations, is subject to tax in Mauritius at therate of 15% on its net income. However, the Portfolio is entitled to a deemed tax credit equiva-lent to the higher of actual foreign tax suffered or a presumed foreign tax equivalent of 80% ofthe Mauritian tax on its foreign source income. Thus, the effective tax rate in Mauritius shouldnot exceed 3% (i.e. 15% less 80% of 15%). Indian companies making distributions are, how-ever, liable to a dividend distribution tax equivalent to 16.995% of the dividends distributed. Acompany holding at least 5% of the share capital of an Indian company and receiving dividendsfrom that Indian company may claim a credit for tax paid by the Indian company on its profitsout of which the dividends were distributed including the dividend distribution tax. No Mauritiancapital gains tax is payable on profits arising from sale of securities, and any dividends andredemption proceeds paid by the Portfolio to its shareholders will be exempt from withholdingor other tax.

The Portfolio continues to: (i) comply with the requirements of the Treaty; (ii) be a tax resident ofMauritius; and (iii) maintain that its central management and control resides in Mauritius, andtherefore management believes that the Portfolio will be able to obtain the benefits of the Treaty.Accordingly, no provision for Indian income taxes has been made in the accompanying financialstatements of the Portfolio for taxes related to capital gains or dividends.

The foregoing is based upon current interpretation and practice and is subject to future changesin Indian or Mauritian tax laws and in the Treaty.




d. Security Transactions, Investment Income and Expenses

Security transactions are accounted for on trade date. Realized gains and losses on securitytransactions are determined on a specific identification basis. Interest income and estimatedexpenses are accrued daily. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized as soon as the Portfolio is notified of the ex-dividend date.

e. Accounting Estimates

The preparation of financial statements in accordance with accounting principles generallyaccepted in the United States of America requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities at the date of the financial statements andthe amounts of income and expenses during the reporting period. Actual results could differ fromthose estimates.

f. Guarantees and Indemnifications

Under the Portfolio’s organizational documents, the Portfolio’s officers and directors are indemni-fied by the Portfolio against certain liabilities arising out of the performance of their duties tothe Portfolio. Additionally, in the normal course of business, the Portfolio enters into contractswith service providers that contain general indemnification clauses. The Portfolio’s maximumexposure under these arrangements is unknown as this would involve future claims that may bemade against the Portfolio that have not yet occurred. Currently, the Portfolio expects the riskof loss to be remote.

2. SHARES OF BENEFICIAL INTEREST

At April 30, 2011, there were an unlimited number of shares authorized (without par value).Transactions in the Portfolio’s shares were as follows:

Six Months Ended Year EndedApril 30, 2011 October 31, 2010

Shares Amount Shares Amount

Shares sold . . . . . . . . . . . . . . . . . . . . . . 2,619,870 $ 29,768,885 5,534,231 $ 54,602,940Shares redeemed . . . . . . . . . . . . . . . . . . (1,489,198) (15,607,453) (6,621,552) $(60,807,865)

Net increase (decrease) . . . . . . . . . . . . . . 1,130,672 $ 14,161,432 (1,087,321) $ (6,204,925)



3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company of Franklin Advisers, Inc. (Advisers) which isthe investment manager of the Portfolio.

a. Management Fees

The Portfolio pays an investment management fee to Advisers equal to 80% of the total manage-ment fee with the remainder to be paid by the Fund based on the average daily net assets of theFund as follows:



Effective May 1, 2011, the Portfolio will pay fees equal to 80% of the total management feewith the remainder to be paid by the Fund based on the average daily net assets of the Fund as follows:




b. Administrative Fees

The Portfolio pays an administrative fee to International Financial Services Limited (IFS), aMauritius company, an annual fee of $30,000 plus reimbursement of certain expenses. Certaindirectors of the Portfolio are also directors of IFS.

4. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the period ended April 30,2011, aggregated $33,993,775 and $18,857,174, respectively.



5. CONCENTRATION OF RISK

Investing in Indian equity securities through the Portfolio may include certain risks and consider-ations not typically associated with investing in U.S. securities, such as fluctuating currency values,less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations(including currency blockage), differing legal standards and changing local and regional economic,political and social conditions, which may result in greater market volatility.

6. FAIR VALUE MEASUREMENTS

The Portfolio follows a fair value hierarchy that distinguishes between market data obtainedfrom independent sources (observable inputs) and the Portfolio’s own market assumptions(unobservable inputs). These inputs are used in determining the value of the Portfolio’s invest-ments and are summarized in the following fair value hierarchy:

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Portfolio’s own assumptions indetermining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associatedwith investing in those securities.

For movements between the levels within the fair value hierarchy, the Portfolio adopted a policyof recognizing the transfers as of the date of the underlying event which caused the movement.

6. FAIR VALUE MEASUREMENTS (continued)

The following is a summary of the inputs used as of April 30, 2011, in valuing the Portfolio’sassets and liabilities carried at fair value:

Level 1 Level 2 Level 3 Total

Assets:Investments in Securities:

Equity Investmentsa . . . . . . . . . . . . . . . . . . . . . . . . $90,944,849 $ — $ — $90,944,849Corporate Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 9,476 9,476

Total Investments in Securities . . . . . . . . . . . . . . . $90,944,849 $ — $9,476 $90,954,325

aFor detailed industry descriptions, see the accompanying Statement of Investments.



7. SUBSEQUENT EVENTS

The Portfolio has evaluated subsequent events through the issuance of the financial statementsand determined that no events have occurred that require disclosure other than those alreadydisclosed in the financial statements.

ABBREVIATIONS

Currency

INR - Indian Rupee


Franklin Templeton International TrustShareholder Information


Board Review of Investment Management Agreement

At a meeting held April 19, 2011, the Board of Trustees (Board), including a majority of non-interested or independent Trustees, approved renewal of the investment management agreement foreach of the Funds within the Trust, including Franklin India Growth Fund (Fund(s)). In reachingthis decision, the Board took into account information furnished throughout the year at regularBoard meetings, as well as information prepared specifically in connection with the annual renewalreview process. Information furnished and discussed throughout the year included investment per-formance reports and related financial information for each Fund, as well as periodic reports onexpenses, shareholder services, legal, compliance, pricing, brokerage commissions and executionand other services provided by the Investment Manager (Manager) and its affiliates. Informationfurnished specifically in connection with the renewal process included a report for each Fund pre-pared by Lipper, Inc. (Lipper), an independent organization, as well as additional material, includinga Fund profitability analysis prepared by management. The Lipper reports compared each Fund’sinvestment performance and expenses with those of other mutual funds deemed comparable to theFund as selected by Lipper. The Fund profitability analysis report discussed the profitability toFranklin Templeton Investments from its overall U.S. fund operations, as well as on an individualfund-by-fund basis. Additional material accompanying such profitability analysis included informa-tion on a fund-by-fund basis listing portfolio managers and other accounts they manage, as well asinformation on management fees charged by the Manager and its affiliates to U.S. mutual funds andother accounts, including management’s explanation of differences where relevant. Such materialalso included a memorandum prepared by management describing project initiatives and capitalinvestments relating to the services provided to the Funds by the Franklin Templeton Investmentsorganization, as well as a memorandum relating to economies of scale and a comparative analysisconcerning transfer agent fees charged each Fund.

In considering such materials, the independent Trustees received assistance and advice from andmet separately with independent counsel. While the investment management agreements for allFunds were considered at the same Board meeting, the Board dealt with each Fund separately. Inapproving continuance of the investment management agreement for each Fund, the Board, includ-ing a majority of independent Trustees, determined that the existing management fee structure wasfair and reasonable and that continuance of the investment management agreement was in the bestinterests of each Fund and its shareholders. While attention was given to all information furnished,the following discusses some primary factors relevant to the Board’s decision.

NATURE, EXTENT AND QUALITY OF SERVICE. The Board was satisfied with the nature andquality of the overall services provided by the Manager and its affiliates to the Fund and its share-holders. In addition to investment performance and expenses discussed later, the Board’s opinion wasbased, in part, upon periodic reports furnished it showing that the investment policies and restric-tions for the Fund were consistently complied with as well as other reports periodically furnished


Franklin Templeton International TrustShareholder Information (continued)


Board Review of Investment Management Agreement (continued)

the Board covering matters such as the compliance of portfolio managers and other managementpersonnel with the code of ethics adopted throughout the Franklin Templeton fund complex, theadherence to fair value pricing procedures established by the Board, and the accuracy of net assetvalue calculations. The Board also noted the extent of benefits provided Fund shareholders frombeing part of the Franklin Templeton family of funds, including the right to exchange investmentsbetween the same class of funds without a sales charge, the ability to reinvest Fund dividends intoother funds and the right to combine holdings in other funds to obtain a reduced sales charge.Favorable consideration was given to management’s continuous efforts and expenditures in estab-lishing back-up systems and recovery procedures to function in the event of a natural disaster, itbeing noted that such systems and procedures had functioned smoothly during the Florida hurri-canes and blackouts experienced in previous years. Among other factors taken into account by the Board were the Manager’s best execution trading policies, including a favorable report by anindependent portfolio trading analytical firm. Consideration was also given to the experience ofthe Fund’s portfolio management team, the number of accounts managed and general method ofcompensation. In this latter respect, the Board noted that a primary factor in management’s deter-mination of a portfolio manager’s bonus compensation was the relative investment performance of the funds he or she managed and that a portion of such bonus was required to be invested in apredesignated list of funds within such person’s fund management area so as to be aligned with theinterests of shareholders. The Board also took into account the quality of transfer agent and share-holder services provided Fund shareholders by an affiliate of the Manager and the continuousenhancements to the Franklin Templeton website. Particular attention was given to management’sconservative approach and diligent risk management procedures, including continuous monitoringof counterparty credit risk and attention given to derivatives and other complex instruments. TheBoard also took into account, among other things, management’s efforts in establishing a globalcredit facility for the benefit of the Fund and other accounts managed by Franklin TempletonInvestments to provide a source of cash for temporary and emergency purposes or to meet unusualredemption requests as well as the strong financial position of the Manager’s parent company andits commitment to the mutual fund business as evidenced by its subsidization of money market funds.

INVESTMENT PERFORMANCE. The Board placed significant emphasis on the investment performance of the Fund in view of its importance to shareholders. While consideration was givento performance reports and discussions with portfolio managers at Board meetings throughout theyear, particular attention in assessing performance was given to the Lipper reports furnished for theagreement renewal. The Lipper reports prepared for the Fund showed the investment performanceof its Class A shares in comparison to a performance universe selected by Lipper. The performanceuniverse for the Fund consisted of the Fund and all retail and institutional emerging markets fundsas selected by Lipper. The Fund has been in operation for only three full annual periods. The Lipperreport comparison showed the Fund’s total return to be in the lowest quintile of such performance





universe for the one-year period and to be in the second-highest quintile of such universe during eachof the previous two one-year periods. The Board noted the limitations of the Lipper comparativeperformance due to the inclusion in the performance universe of funds with no or limited invest-ments in India, and took into account information showing that the Fund’s one-year return hadoutperformed the MSCI India Index and was competitive with those of other India funds. Basedon such factors, the Board was satisfied with the Fund’s performance.

COMPARATIVE EXPENSES. Consideration was given to a comparative analysis of the manage-ment fee and total expense ratio of the Fund compared with those of a group of other funds selectedby Lipper as constituting its appropriate Lipper expense group. Lipper expense data is based uponinformation taken from each fund’s most recent annual report, which reflects historical asset levelsthat may be quite different from those currently existing, particularly in a period of market volatil-ity. While recognizing such inherent limitation and the fact that expense ratios generally increase asassets decline and decrease as assets grow, the Board believed the independent analysis conductedby Lipper to be an appropriate measure of comparative expenses. In reviewing comparative costs,Lipper provides information on each Fund’s contractual investment management fee in comparisonwith the investment management fee that would have been charged by other funds within its Lipperexpense group assuming they were similar in size to the Fund, as well as the actual total expenseratio of the Fund in comparison with those of its Lipper expense group. The Lipper contractualinvestment management fee analysis includes administrative charges as being part of the investmentmanagement fee, and actual total expenses, for comparative consistency, are shown by Lipper forFund Class A shares. The Lipper report showed the contractual investment management fee ratefor the Fund to be in the most expensive quintile of its Lipper expense group, but its actual totalexpense ratio to be below the median of such group. The Board was satisfied with such expenses,noting they were subsidized by management, but believed it appropriate to reduce the Fund’sinvestment management fee and negotiated with the Manager downward revisions of such fee asdiscussed under “Economies of Scale.”

MANAGEMENT PROFITABILITY. The Board also considered the level of profits realized bythe Manager and its affiliates in connection with the operation of the Fund. In this respect, theBoard reviewed the Fund profitability analysis that addresses the overall profitability of FranklinTempleton’s U.S. fund business, as well as its profits in providing management and other servicesto each of the individual funds during the 12-month period ended September 30, 2010, being themost recent fiscal year-end for Franklin Resources, Inc., the Manager’s parent. In reviewing theanalysis, attention was given to the methodology followed in allocating costs to the Fund, it beingrecognized that allocation methodologies are inherently subjective and various allocation method-ologies may each be reasonable while producing different results. In this respect, the Board noted





that, while being continuously refined and reflecting changes in the Manager’s own cost accounting,the allocation methodology was consistent with that followed in profitability report presentations forthe Fund made in prior years and that the Fund’s independent registered public accounting firm hadbeen engaged by the Manager to review the reasonableness of the allocation methodologies solely foruse by the Fund’s Board in reference to the profitability analysis. In reviewing and discussing suchanalysis, management discussed with the Board its belief that costs incurred in establishing the infra-structure necessary for the type of mutual fund operations conducted by the Manager and its affiliatesmay not be fully reflected in the expenses allocated to the Fund in determining its profitability, aswell as the fact that the level of profits, to a certain extent, reflected operational cost savings andefficiencies initiated by management. The Board also took into account management’s expendituresin improving shareholder services provided the Fund, as well as the need to meet additional reg-ulatory and compliance requirements resulting from the Sarbanes-Oxley Act and recent SEC andother regulatory requirements. In addition, the Board considered a third-party study comparing theprofitability of the Manager’s parent on an overall basis to other publicly held managers brokendown to show profitability from management operations exclusive of distribution expenses, as wellas profitability including distribution expenses. The Board also considered the extent to which theManager and its affiliates might derive ancillary benefits from fund operations, including revenuesgenerated from transfer agent services and potential benefits resulting from allocation of fund brokerage and the use of commission dollars to pay for research. Based upon its consideration of allthese factors, the Board determined that the level of profits realized by the Manager and its affiliatesfrom providing services to the Fund was not excessive in view of the nature, quality and extent ofservices provided.

ECONOMIES OF SCALE. The Board also considered whether economies of scale are realized bythe Manager as the Fund grows larger and the extent to which this is reflected in the level of man-agement fees charged. While recognizing that any precise determination is inherently subjective,the Board noted that based upon the Fund profitability analysis, it appears that as some funds getlarger, at some point economies of scale do result in the Manager realizing a larger profit marginon management services provided such a fund. The Board also noted that economies of scale areshared with the Fund and its shareholders through management fee breakpoints so that as a fundgrows in size, its effective management fee rate declines. The asset level of the Fund was approxi-mately $108 million on December 31, 2010, and, while believing such size afforded no meaningfuleconomies of scale, the Board negotiated downward revisions in the Fund’s investment manage-ment fee schedule effective May 1, 2011, so as to be at the rate of 1.10% on the first $1 billion ofFund net assets; 1.05% on the next $4 billion of Fund net assets; 1.00% on the next $5 billion ofFund net assets; 0.95% on the next $5 billion of Fund net assets; 0.90% on the next $5 billion ofFund net assets; and 0.85% on net assets in excess of $20 billion.




Proxy Voting Policies and Procedures

The Fund’s investment manager has established Proxy Voting Policies and Procedures (Policies) thatthe Fund uses to determine how to vote proxies relating to portfolio securities. Shareholders mayview the Fund’s complete Policies online at franklintempleton.com. Alternatively, shareholders mayrequest copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street,Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Fund’s proxy voting records arealso made available online at franklintempleton.com and posted on the U.S. Securities and ExchangeCommission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Statement of Investments

The Fund files a complete statement of investments with the U.S. Securities and Exchange Commissionfor the first and third quarters for each fiscal year on Form N-Q. Shareholders may view the filedForm N-Q by visiting the Commission’s website at sec.gov. The filed form may also be viewed andcopied at the Commission’s Public Reference Room in Washington, DC. Information regarding theoperations of the Public Reference Room may be obtained by calling (800) SEC-0330.

Franklin Templeton FundsLiterature Request. To receive a summary prospectus and/or prospectus, please call us at (800) DIAL BEN/342-5236 or

visit franklintempleton.com. Investors should carefully consider a fund’s investment goals, risks, charges and expenses

before investing. The prospectus contains this and other information. Please carefully read a prospectus before investing.

To ensure the highest quality of service, we may monitor, record and access telephone calls to or from our service

departments. These calls can be identified by the presence of a regular beeping tone.

VALUEFranklin All Cap Value FundFranklin Balance Sheet Investment FundFranklin Large Cap Value FundFranklin MicroCap Value Fund1

Franklin MidCap Value FundFranklin Small Cap Value FundMutual Beacon FundMutual Quest FundMutual Recovery Fund2

Mutual Shares Fund

BLENDFranklin Focused Core Equity FundFranklin Large Cap Equity FundFranklin Rising Dividends Fund

GROWTHFranklin DynaTech FundFranklin Flex Cap Growth FundFranklin Growth FundFranklin Growth Opportunities FundFranklin Small Cap Growth FundFranklin Small-Mid Cap Growth Fund

SECTORFranklin Biotechnology Discovery FundFranklin Global Real Estate FundFranklin Gold & Precious Metals FundFranklin Natural Resources FundFranklin Real Estate Securities FundFranklin Utilities FundMutual Financial Services Fund

GLOBALFranklin World Perspectives FundMutual Global Discovery FundTempleton Global Opportunities TrustTempleton Global Smaller Companies FundTempleton Growth FundTempleton World Fund

1. The fund is closed to new investors. Existing shareholders and select retirement plans cancontinue adding to their accounts.2. The fund is a continuously offered, closed-end fund. Shares may be purchased daily; thereis no daily redemption. However, each quarter, pending board approval, the fund will authorizethe repurchase of 5%–25% of the outstanding number of shares. Investors may tender all ora portion of their shares during the tender period.3. Effective 5/1/10, the Franklin Templeton Target Funds changed their name to the FranklinTempleton Allocation Funds. The funds’ investment goals and principal investment strategiesremained unchanged.

4. An investment in the fund is neither insured nor guaranteed by the U.S. government or byany other entity or institution.5. For investors subject to the alternative minimum tax, a small portion of fund dividends maybe taxable. Distributions of capital gains are generally taxable.6. The fund invests primarily in insured municipal securities.7. The funds of the Franklin Templeton Variable Insurance Products Trust are generally availableonly through insurance company variable contracts.

AlabamaArizonaCalifornia (4 funds)ColoradoConnecticutFloridaGeorgiaKentuckyLouisianaMarylandMassachusettsMichigan

MinnesotaMissouriNew JerseyNew York (2 funds)North CarolinaOhioOregonPennsylvaniaTennesseeVirginia

INSURANCE FUNDSFranklin Templeton Variable Insurance Products Trust7

01/11 Not part of the semiannual report

INTERNATIONALFranklin India Growth FundFranklin International Growth FundFranklin International Small Cap Growth FundMutual European FundMutual International FundTempleton Asian Growth FundTempleton BRIC FundTempleton China World FundTempleton Developing Markets TrustTempleton Emerging Markets Small Cap FundTempleton Foreign FundTempleton Foreign Smaller Companies FundTempleton Frontier Markets Fund

HYBRIDFranklin Balanced FundFranklin Convertible Securities FundFranklin Equity Income FundFranklin Income FundTempleton Income Fund

ASSET ALLOCATIONFranklin Templeton Corefolio® Allocation FundFranklin Templeton Founding Funds Allocation FundFranklin Templeton Conservative Allocation Fund3

Franklin Templeton Growth Allocation Fund3

Franklin Templeton Moderate Allocation Fund3

Franklin Templeton 2015 Retirement Target FundFranklin Templeton 2025 Retirement Target FundFranklin Templeton 2035 Retirement Target FundFranklin Templeton 2045 Retirement Target Fund

FIXED INCOMEFranklin Adjustable U.S. Government Securities Fund4

Franklin Floating Rate Daily Access FundFranklin High Income FundFranklin Limited Maturity U.S. GovernmentSecurities Fund4

Franklin Low Duration Total Return FundFranklin Real Return FundFranklin Strategic Income FundFranklin Strategic Mortgage PortfolioFranklin Templeton Hard Currency FundFranklin Total Return FundFranklin U.S. Government Securities Fund4

Templeton Global Bond FundTempleton Global Total Return FundTempleton International Bond Fund

TAX-FREE INCOME5

NationalDouble Tax-Free Income FundFederal Tax-Free Income FundHigh Yield Tax-Free Income FundInsured Tax-Free Income Fund6

Limited-/ Intermediate-TermCalifornia Intermediate-Term Tax-Free Income FundFederal Intermediate-Term Tax-Free Income FundFederal Limited-Term Tax-Free Income FundNew York Intermediate-Term Tax-Free Income Fund

State-Specific

< GAIN FROM OUR PERSPECTIVE® >

VALUE BLEND GROWTH SECTOR GLOBAL INTERNAT IONAL HYBRID ASSET ALLOCAT ION F IXED INCOME TAX-FREE INCOME

© 2011 Franklin Templeton Investments. All rights reserved. 141 S 06/11

Semiannual Report and Shareholder Letter


Investment ManagerFranklin Advisers, Inc.

SubadvisorFranklin Templeton Asset Management (India)Private Limited

DistributorFranklin Templeton Distributors, Inc.(800) DIAL BEN®/342-5236franklintempleton.com

Shareholder Services(800) 632-2301

Authorized for distribution only when accompanied or preceded by a summary prospectus and/or prospectus.Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. A prospectus contains this and other information; please read it carefully before investing.

To ensure the highest quality of service, telephone calls to or from our service departments may be monitored, recorded andaccessed. These calls can be identified by the presence of a regular beeping tone.

Date post:	17-Aug-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Franklin India Growth Fund · Despite some short-term economic concerns at period-end, India was...

Documents