INTERNATIONAL Templeton Emerging Markets Small Cap FundTempleton Emerging Markets Small Cap Fund’s...

Templeton Emerging Markets Small Cap Fund

SEPTEMBER 30, 2011

SEMIANNUAL REPORTAND SHAREHOLDER LETTER

A series of Templeton Global Investment Trust

I NTERNAT IONAL

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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.

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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.

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Shareholder Letter

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Dear Shareholder:

During the six months ended September 30, 2011, investor concerns aboutglobal economic growth, the eurozone sovereign debt crisis and U.S. fiscal policy pressured equity markets globally. Even though emerging economiesgenerally continued to grow faster than developed economies, emerging mar-ket stocks, overall, suffered steeper declines than developed market stocks.

Although the recent environment has been challenging, we remain cautiouslyoptimistic about emerging economies as they continue to show growth. Keepin mind we have navigated through past periods of economic uncertainty andmarket volatility by remaining committed to our long-term perspective anddisciplined investment approach. First and foremost for us, this means usingour on-the-ground research team to conduct rigorous, company-by-companyanalysis to find what we consider to be bargain opportunities.

Templeton Emerging Markets Small Cap Fund’s semiannual report goes intogreater detail about prevailing conditions during the period under review. Inaddition, you will find Fund performance data, financial information and adiscussion about investment decisions. Please remember all securities marketsfluctuate, as do mutual fund share prices.

If you would like more frequent updates, franklintempleton.com providesdaily prices, monthly performance figures, portfolio holdings and otherinformation. You can also access your account, buy and sell shares, readtimely articles, and find helpful financial planning tools. We hope you willtake advantage of these online services.

Historically, patient investors have achieved rewarding results by evaluatingtheir goals, diversifying their assets globally and maintaining a disciplinedinvestment program, all hallmarks of the Templeton investment philosophydeveloped more than 50 years ago. We continue to recommend investors

ContentsSemiannual Report

Templeton Emerging Markets Small Cap Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Performance Summary . . . . . . . . . . . . . . . . . 8

Your Fund’s Expenses . . . . . . . . . . . . . . . . . . 11

Financial Highlights andStatement of Investments . . . . . . . . . . . . . . 13

Financial Statements . . . . . . . . . . . . . . . . . . 22

Notes to Financial Statements . . . . . . . . . . . 26

Shareholder Information . . . . . . . . . . . . . . . . 37

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

consult their financial advisors and review their portfolios to design a long-term strategy and portfolio allocation that meet their individual needs, goalsand risk tolerance. We firmly believe most people benefit from professionaladvice and that advice is invaluable as investors navigate changing marketenvironments.

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

Sincerely,

Mark MobiusExecutive ChairmanTempleton Emerging Markets Group

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

2 | Not part of the semiannual report

Semiannual Report | 3

This semiannual report for Templeton Emerging Markets Small Cap Fundcovers the period ended September 30, 2011.

Economic and Market Overview

The fundamental and financial strength of emerging markets was evident dur-ing the six months ended September 30, 2011, as emerging market countriescontinued to report generally strong economic data, albeit a moderation from2010. This strength, however, was not reflected in equity prices as the euro-zone sovereign debt crisis and U.S. fiscal concerns led investors to hold cash,shying away from investments in developed and emerging markets.

Global stock prices were largely range bound in the first four months of thereporting period. In the final two months of the period, however, global stocksfell sharply as the prolonged eurozone sovereign debt crisis and lack of acomprehensive solution continued to weigh heavily on investor sentiment.Renewed worries that the U.S. could slip back into a recession further accel-erated market declines.

High volatility and increased uncertainty also gave investors reasons to lock inprofits from 2009 and 2010, when many emerging markets returned morethan 100% in U.S. dollar (USD) terms, as measured by the components of theMSCI Emerging Markets (EM) Index, which tracks stock performance in

Semiannual Report

Templeton Emerging Markets Small Cap FundYour Fund’s Goal and Main Investments: Templeton Emerging Markets Small Cap

Fund seeks long-term capital appreciation. Under normal market conditions, the Fund invests at least

80% of its net assets in securities of small-cap companies located in emerging market countries, as

defined in the Fund’s prospectus.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in theFund’s Statement of Investments (SOI). The SOI begins on page 17.

Portfolio BreakdownBased on Total Net Assets as of 9/30/11

Asia

Europe

Middle East & Africa

Latin America & Caribbean

52.2%

30.9%

9.3%

7.0%

0.6%Short-Term Investments & Other Net Assets

4 | Semiannual Report

1. Source: © 2011 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstarand/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete ortimely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use ofthis information. The indexes are unmanaged and include reinvested dividends. One cannot invest directly in an index,and an index is not representative of the Fund’s portfolio.

emerging markets.1 Largely as a result of profit taking, the MSCI EM SmallCap Index, which measures performance of small-cap stocks in emerging mar-kets, had a -24.46% total return in USD terms during the reporting period.1

Within emerging markets, Southeast Asian stocks were among the betterperformers during the reporting period. Strong domestic demand, rising dis-posable incomes and relatively low unemployment made these economiesmore resilient to global uncertainties. Relatively more export-dependentmarkets such as China and South Korea, however, underperformed theirregional peers. Latin American stocks were further impacted by weakeremerging market currencies and lower commodity prices. Eastern Europeanstocks were among the laggards, largely due to their proximity to their westerncounterparts rather than a significant deterioration in the region’s economies.While performing significantly better than their emerging market counterpartsin local currency terms, South African and Turkish stocks suffered double-digitdeclines in USD terms for the period mainly due to weaker domestic currencies.

Investment Strategy

Our investment strategy employs a fundamental research, value-oriented,long-term approach. We focus on the market price of a company’s securitiesrelative to our evaluation of the company’s long-term (typically five years)earnings, asset value and cash flow potential. We also consider a company’sprofit and loss outlook, balance sheet strength, cash flow trends and assetvalue in relation to the current price. In choosing investments, we stronglybelieve in on-site visits to issuers of prospective investments to assess criticalfactors such as management strength and local conditions.

Performance Overview

For the six months under review, Templeton Emerging Markets Small CapFund – Class A had a cumulative total return of -24.20%. In comparison, theMSCI EM Index, which measures stock performance in emerging markets,had a total return of -23.27% for the same period.1 Also for comparison, the MSCI EM Small Cap Index had a total return of -24.46% for the sameperiod.1 Please note index performance information is provided for referenceand we do not attempt to track any index but rather undertake investmentson the basis of fundamental research. In addition, the Fund’s return reflects

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.


the effect of fees and expenses for professional management, while an indexdoes not have such costs. You can find more of the Fund’s performance datain the Performance Summary beginning on page 8.

Manager’s Discussion

During the six-month reporting period, major detractors from the Fund’sabsolute performance were China Green (Holdings), a leading green foodproducer in China’s Fujian Province; Synergy, one of Russia’s largest vodkaproducers; and AIK Banka, one of Serbia’s leading mid-sized banks. ChinaGreen’s share price was hurt by rising material costs and higher marketingand promotion expenditures. We considered China Green’s valuations attrac-tive and remained optimistic about the company’s fundamentals and growthpotential as it continues to expand its domestic market. Synergy’s share pricedecline was attributable largely to increases in social taxes, as well as market-ing, distribution and relicensing expenses. We continued to hold the stock aswe believed it offered reasonable valuations, strong market share and grow-ing exports. Weakness in the European banking sector negatively impactedAIK Banka shares during the reporting period. In the short term, the bankcould face challenges stemming from economic and eurozone debt concerns.However, the bank is well capitalized and, in our assessment, attractively val-ued and could be a strong takeover candidate in the long term.

For the period under review, three leading contributors to absolute perform-ance were Youngone, a South Korean exporter of OEM (original equipmentmanufacturer) sportswear products; Universal Robina, a leading brandedconvenience food and beverage company in the Philippines; and Hau Giang(DHG) Pharmaceutical, one of Vietnam’s largest pharmaceutical companies.Youngone’s share price was driven by strong earnings, a favorable businessoutlook and strong balance sheet. Universal Robina’s dominant market posi-tion could continue to allow the company to benefit from greater domesticdemand, rising disposable incomes and strong food industry growth. In ourview, Hau Giang’s strong market position and balance sheet make the com-pany well positioned to capitalize on the Vietnamese pharmaceuticalindustry’s high growth potential.

It is also important to recognize the effect of currency movements on theFund’s performance. In general, if the value of the U.S. dollar goes up com-pared with a foreign currency, an investment traded in that foreign currencywill go down in value because it will be worth fewer U.S. dollars. This canhave a negative effect on Fund performance. Conversely, when the U.S. dollar

Top 10 CountriesBased on Equity Securities9/30/11

% of TotalNet Assets

Turkey 16.8%

South Korea 12.0%

India 10.8%

China 8.9%

Philippines 7.5%

Russia 6.1%

Hong Kong 4.1%

Nigeria 3.9%

Mexico 3.2%

Malaysia 3.0%


weakens in relation to a foreign currency, an investment traded in that foreigncurrency will increase in value, which can contribute to Fund performance.For the six months ended September 30, 2011, the U.S. dollar rose in valuerelative to most currencies. As a result, the Fund’s performance was nega-tively affected by the portfolio’s investment predominantly in securities withnon-U.S. currency exposure.

Redemptions during the period required us to sell a number of holdings. Someof these sales helped the Fund focus on stocks we deemed more attractivelyvalued within our investment universe. As a result, we reduced the Fund’sinvestments in apparel retail, oil and gas pipes, distiller and vintner, and goldcompanies. Geographically, holdings in Hong Kong, South Korea, Turkey,Poland and Thailand were reduced. Major sales included elimination of theFund’s positions in Sansiri, a reputable real estate company in Thailand, andCEDC (Central European Distribution), Poland’s largest vodka producer, andreduction of the Fund’s investment in I.T, a leading fashion apparel retailer inHong Kong.

As a result of sales activities to raise funds for redemptions, we undertookvery few purchases during the period. These included additional investmentsin Reysas Gayrimenkul Yatirim Ortakligi, Turkey’s first and only real estateinvestment trust (REIT) focused on the warehousing market, and Hirco, aclosed-end investment company that invests in India’s real estate market.

Top 10 Equity Holdings9/30/11

Company % of TotalSector/Industry, Country Net Assets

Universal Robina Corp. 5.5%Food Products, Philippines

Anadolu Cam Sanayii AS 4.2%Containers & Packaging, Turkey

Trakya Cam Sanayii AS 3.4%Building Products, Turkey

Grupo Herdez SAB de CV 3.2%Food Products, Mexico

I.T Ltd. 3.2%Specialty Retail, Hong Kong

Pinar Sut Mamulleri Sanayii AS 3.1%Food Products, Turkey

Sam Kwang Glass Industry Co. Ltd. 3.1%Household Durables, South Korea

Federal Bank Ltd. 3.0%Commercial Banks, India

Maharasha Seamless Ltd. 2.8%Metals & Mining, India

Reysas Gayrimenkul Yatirim Ortakligi AS 2.5%Real Estate Investment Trusts (REITs), Turkey


Thank you for your continued participation in Templeton Emerging MarketsSmall Cap Fund. We look forward to serving your future investment needs.

Mark Mobius

Dennis Lim

Tom Wu

Portfolio Management TeamTempleton Emerging Markets Small Cap Fund

The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2011, the end ofthe reporting 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 aspect ofany market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but theinvestment manager makes no representation or warranty as to their completeness or accuracy. Although historicalperformance is no guarantee of future results, these insights may help you understand our investment managementphilosophy.


Performance Summary as of 9/30/11

Price Information

Class A (Symbol: TEMMX) Change 9/30/11 3/31/11

Net Asset Value (NAV) -$2.88 $9.02 $11.90

Class C (Symbol: TCEMX) Change 9/30/11 3/31/11


Class R (Symbol: n/a) Change 9/30/11 3/31/11


Advisor Class (Symbol: TEMZX) Change 9/30/11 3/31/11


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 capitalgain distributions, if any, and any unrealized gains or losses.


Performance Summary (continued)

Performance1

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

Class A 6-Month 1-Year 3-Year Inception (10/2/06)

Cumulative Total Return2 -24.20% -22.38% +35.32% +7.97%

Average Annual Total Return3 -28.58% -26.85% +8.44% +0.35%

Value of $10,000 Investment4 $7,142 $7,315 $12,751 $10,177

Total Annual Operating Expenses5

Without Waiver 2.18%

With Waiver 2.12%

Class C 6-Month 1-Year 3-Year Inception (10/2/06)






With Waiver 2.82%

Class R 6-Month 1-Year 3-Year Inception (10/2/06)






With Waiver 2.32%

Advisor Class 6-Month 1-Year 3-Year Inception (10/2/06)






With Waiver 1.82%

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 common expenses (excluding Rule 12b-1 fees and acquired fund fees and expenses) for each class of the Fund do notexceed 1.80% (other than certain nonroutine expenses) until 7/31/12.


Performance Summary (continued)

Endnotes

Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments.Investments in emerging market countries involve heightened risks related to the same factors, in addition to those associated with thesemarkets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets.Smaller company stocks have historically had more price volatility than large-company stocks, particularly over the short term. Because theFund is nondiversified and may invest a greater portion of its assets in the securities of one issuer than a diversified fund, it may be more sen-sitive to economic, business, political or other changes affecting similar issuers or securities. All investments in the Fund should be thought ofas long-term investments that could experience significant price volatility in any given year. The Fund is designed for the aggressive portion ofa well-diversified portfolio. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce thedesired results. The Fund’s prospectus also includes a description of the main investment risks.

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

Class R: Shares are available to certain eligible investors as described in the prospectus. These shares have higher annual fees andexpenses 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. 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 notbe used to estimate the actual ending account balance or expenses you paid during the period. Thehypothetical “Ending Account Value” is based on the actual expense ratio for each class and anassumed 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 During Class A Value 4/1/11 Value 9/30/11 Period* 4/1/11–9/30/11

Actual $1,000 $ 758.00 $ 9.23

Hypothetical (5% return before expenses) $1,000 $1,014.50 $10.58

Class C

Actual $1,000 $ 755.30 $12.29


Class R

Actual $1,000 $ 757.00 $10.10


Advisor Class

Actual $1,000 $ 759.00 $ 7.92

Hypothetical (5% return before expenses) $1,000 $1,016.00 $ 9.07

*Expenses are calculated using the most recent six-month expense ratio, net of expense waivers, annualized for each class (A: 2.10%; C: 2.80%; R: 2.30%; and Advisor: 1.80%), multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period.

Templeton Global Investment TrustFinancial Highlights

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


Six Months EndedSeptember 30, 2011 Year Ended March 31,

Class A (unaudited) 2011 2010 2009 2008 2007a

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

Net asset value, beginning of period . . . . . . . . . . . $11.90 $10.74 $ 4.39 $11.32 $11.50 $10.00

Income from investment operationsb:

Net investment income (loss)c . . . . . . . . . . . . . . . 0.08 (0.06) (0.05) 0.13 0.17 0.09

Net realized and unrealized gains (losses) . . . . . . . (2.96) 1.22 6.44 (6.52) 0.41 1.43

Total from investment operations . . . . . . . . . . . . . . (2.88) 1.16 6.39 (6.39) 0.58 1.52

Less distributions from:

Net investment income . . . . . . . . . . . . . . . . . . . . — — (0.04) (0.06) (0.11) (0.02)

Net realized gains . . . . . . . . . . . . . . . . . . . . . . . . — — — (0.48) (0.65) —

Tax return of capital . . . . . . . . . . . . . . . . . . . . . . — — —d — — —

Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . — — (0.04) (0.54) (0.76) (0.02)

Redemption feese . . . . . . . . . . . . . . . . . . . . . . . . . — — — —d —d —d

Net asset value, end of period . . . . . . . . . . . . . . . . $ 9.02 $11.90 $10.74 $ 4.39 $11.32 $11.50

Total returnf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.20)% 10.80% 145.52% (56.50)% 4.41% 15.19%

Ratios to average net assetsg

Expenses before waiver and payments by affiliates and expense reduction . . . . . . . . . . . . . . . . . . . . . 2.16% 2.14% 2.21% 2.51% 2.38% 2.82%

Expenses net of waiver and payments by affiliates . . . 2.10% 2.10% 2.10% 2.09% 2.16% 2.15%

Expenses net of waiver and payments by affiliatesand expense reduction . . . . . . . . . . . . . . . . . . . . . 2.10% 2.10% 2.10% 2.09% 2.15% 2.15%

Net investment income (loss) . . . . . . . . . . . . . . . . . 1.37% (0.57)% (0.56)% 1.71% 1.36% 1.54%

Supplemental data

Net assets, end of period (000’s) . . . . . . . . . . . . . . $191,786 $288,237 $178,439 $26,689 $80,427 $37,774

Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . 1.90% 18.27% 61.93% 64.81% 101.77% 50.04%

aFor the period October 2, 2006 (commencement of operations) to March 31, 2007.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.eEffective September 1, 2008, the redemption fee was eliminated.fTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.gRatios are annualized for periods less than one year.

Templeton Global Investment TrustFinancial Highlights (continued)

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



Class C (unaudited) 2011 2010 2009 2008 2007a














Total returnf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.47)% 10.08% 144.27% (56.84)% 3.73% 14.82%


Expenses before waiver and payments by affiliatesand expense reduction . . . . . . . . . . . . . . . . . . . . . 2.86% 2.84% 2.91% 3.16% 3.03% 3.47%




Supplemental data








Class R (unaudited) 2011 2010 2009 2008 2007a














Total returnf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.30)% 10.64% 145.15% (56.61)% 4.18% 15.13%






Supplemental data

Net assets, end of period (000’s) . . . . . . . . . . . . . . $688 $778 $187 $89 $197 $197







Advisor Class (unaudited) 2011 2010 2009 2008 2007a














Total returnf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.10)% 11.22% 146.20% (56.37)% 4.76% 15.35%






Supplemental data



aFor the period October 2, 2006 (commencement of operations) to March 31, 2007.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.eEffective September 1, 2008, the redemption fee was eliminated.fTotal return is not annualized for periods less than one year.gRatios are annualized for periods less than one year.


Templeton Global Investment TrustStatement of Investments, September 30, 2011 (unaudited)

Templeton Emerging Markets Small Cap Fund Industry Shares/Warrants Value

Common Stocks and Other Equity Interests 97.2%Argentina 0.1%

a Ultrapetrol Bahamas Ltd. . . . . . . . . . . . . . . . . . Marine 170,928 $ 388,007

Austria 0.4%DO & CO Restaurants & Catering AG . . . . . . . . . Hotels, Restaurants & Leisure 36,900 1,330,052

Brazil 1.9%Julio Simoes Logistica SA . . . . . . . . . . . . . . . . . Road & Rail 1,248,503 5,827,473

China 8.9%Anhui Tianda Oil Pipe Co. Ltd., H . . . . . . . . . . . Energy Equipment & Services 20,271,841 3,101,572Anta Sports Products Ltd. . . . . . . . . . . . . . . . . . Textiles, Apparel & Luxury Goods 4,546,000 5,252,985Beijing Jingkelong Co. Ltd., H . . . . . . . . . . . . . . Food & Staples Retailing 27,000 24,195

b Chaoda Modern Agriculture (Holdings) Ltd. . . . . . Food Products 6,900,000 974,683China Green (Holdings) Ltd. . . . . . . . . . . . . . . . Food Products 19,478,000 3,656,616China Vanadium Titano-Magnetite Mining Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Metals & Mining 17,247,000 2,697,341

Jiangling Motors Corp. Ltd., B . . . . . . . . . . . . . . Automobiles 2,852,716 4,454,895Ju Teng International Holdings Ltd. . . . . . . . . . . Electronic Equipment, Instruments & Components 3,816,000 703,092

a Sohu.com Inc. . . . . . . . . . . . . . . . . . . . . . . . . . Internet Software & Services 35,300 1,701,460Win Hanverky Holdings Ltd. . . . . . . . . . . . . . . . Textiles, Apparel & Luxury Goods 27,792,000 2,050,286

a Xiwang Sugar Holdings Co. Ltd. . . . . . . . . . . . . . Food Products 9,220,030 1,495,250a Xiwang Sugar Holdings Co. Ltd., wts., 2/22/12 . . Food Products 1,536,671 —Yorkey Optical International Cayman Ltd. . . . . . . Leisure Equipment & Products 6,590,000 589,443

26,701,818

Czech Republic 0.9%Pegas Nonwovens SA . . . . . . . . . . . . . . . . . . . . Textiles, Apparel & Luxury Goods 119,073 2,767,194

Egypt 3.0%Eastern Tobacco . . . . . . . . . . . . . . . . . . . . . . . . Tobacco 116,291 1,705,790Egyptian International Pharmaceutical Industries Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pharmaceuticals 1,348,432 7,233,531

8,939,321

Hong Kong 4.1%I.T Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Specialty Retail 15,426,395 9,541,448Victory City International Holdings Ltd. . . . . . . . Textiles, Apparel & Luxury Goods 20,514,864 1,533,486Water Oasis Group Ltd. . . . . . . . . . . . . . . . . . . . Specialty Retail 13,834,000 1,063,902

12,138,836

Hungary 1.7%a Ablon Group Ltd. . . . . . . . . . . . . . . . . . . . . . . . Real Estate Management & Development 1,381,078 782,394Egis Nyrt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pharmaceuticals 62,262 4,183,253

4,965,647


Templeton Global Investment TrustStatement of Investments, September 30, 2011 (unaudited) (continued)


Common Stocks and Other Equity Interests (continued)India 10.8%ABG Shipyard Ltd. . . . . . . . . . . . . . . . . . . . . . . Machinery 274,167 $ 2,185,555Balkrishna Industries Ltd. . . . . . . . . . . . . . . . . . Auto Components 989,653 3,488,471Federal Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . Commercial Banks 1,215,043 9,046,392

a Hirco PLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . Real Estate Management & Development 1,711,704 1,688,939ING Vysya Bank Ltd. . . . . . . . . . . . . . . . . . . . . . Commercial Banks 693,200 4,206,567JK Cements Ltd. . . . . . . . . . . . . . . . . . . . . . . . Construction Materials 1,390,213 3,211,259Maharashtra Seamless Ltd. . . . . . . . . . . . . . . . . Metals & Mining 1,181,789 8,477,399

32,304,582

Kazakhstan 2.5%a,c Zhaikmunai LP, GDR, Reg S . . . . . . . . . . . . . . . Oil, Gas & Consumable Fuels 993,641 7,343,007

Kenya 0.2%Safaricom Ltd. . . . . . . . . . . . . . . . . . . . . . . . . Wireless Telecommunication Services 23,607,700 693,307

Latvia 0.9%a Grindeks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pharmaceuticals 284,769 2,731,240

Malaysia 3.0%Hartalega Holdings Bhd. . . . . . . . . . . . . . . . . . . Health Care Equipment & Supplies 2,212,000 3,792,350Lion Industries Corp. Bhd. . . . . . . . . . . . . . . . . Metals & Mining 12,737,500 5,338,464

9,130,814

Mexico 3.2%Grupo Herdez SAB de CV . . . . . . . . . . . . . . . . . Food Products 5,515,724 9,724,968

Nigeria 3.9%Access Bank Nigeria PLC . . . . . . . . . . . . . . . . . Commercial Banks 72,624,457 2,552,530Ecobank Transnational Inc. . . . . . . . . . . . . . . . . Commercial Banks 24,628,262 1,823,631UAC of Nigeria PLC . . . . . . . . . . . . . . . . . . . . . Industrial Conglomerates 26,062,286 5,453,684United Bank for Africa PLC . . . . . . . . . . . . . . . . Commercial Banks 75,598,059 1,820,216

11,650,061

Pakistan 0.0%†

United Bank Ltd. . . . . . . . . . . . . . . . . . . . . . . . Commercial Banks 70,302 48,528

Philippines 7.5%Security Bank Corp. . . . . . . . . . . . . . . . . . . . . . Commercial Banks 3,058,200 6,048,436Universal Robina Corp. . . . . . . . . . . . . . . . . . . . Food Products 17,380,000 16,423,956

22,472,392

Poland 0.7%a AmRest Holdings NV . . . . . . . . . . . . . . . . . . . . Hotels, Restaurants & Leisure 68,808 1,399,365a Bomi SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Food & Staples Retailing 330,931 413,238Warsaw Stock Exchange . . . . . . . . . . . . . . . . . . Diversified Financial Services 19,000 241,024

2,053,627




Common Stocks and Other Equity Interests (continued)Republic of Serbia 1.8%

a AIK Banka AD . . . . . . . . . . . . . . . . . . . . . . . . . Commercial Banks 219,906 $ 5,524,374

Romania 0.7%a,d Impact Developer & Contractor SA . . . . . . . . . . . Real Estate Management & Development 12,171,000 858,110

SC Bursa De Valori Bucuresti SA . . . . . . . . . . . . Diversified Financial Services 150,090 1,284,408

2,142,518

Russia 6.1%a Belon OJSC . . . . . . . . . . . . . . . . . . . . . . . . . . . Metals & Mining 2,470,090 915,455

a,c Cherkizovo Group OJSC, GDR, Reg S . . . . . . . . . Food Products 147,032 2,154,019CTC Media Inc. . . . . . . . . . . . . . . . . . . . . . . . . Media 192,858 1,716,436

a Russian Sea Group OAO . . . . . . . . . . . . . . . . . . Food Products 745,844 1,835,034a Synergy Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . Beverages 349,907 6,218,321Veropharm . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pharmaceuticals 202,875 5,247,806

18,087,071

South Korea 12.0%Amorepacific Group . . . . . . . . . . . . . . . . . . . . . Personal Products 26,967 5,254,923Binggrae Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . Food Products 13,278 526,532

a CJ E&M Corp. . . . . . . . . . . . . . . . . . . . . . . . . . Media 150,680 5,045,793HNK Machine Tool Co., Ltd. . . . . . . . . . . . . . . . Machinery 206,890 2,734,988Maeil Dairy Industry . . . . . . . . . . . . . . . . . . . . . Food Products 189,818 1,803,496Medy-tox Inc. . . . . . . . . . . . . . . . . . . . . . . . . . Pharmaceuticals 211,057 3,355,566Sam Kwang Glass Industry Co. Ltd. . . . . . . . . . . Household Durables 156,488 9,149,893Silicon Works Co. Ltd. . . . . . . . . . . . . . . . . . . . Semiconductors & Semiconductor Equipment 15,692 274,992Vieworks Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . Health Care Equipment & Supplies 94,921 523,501Youngone Corp. . . . . . . . . . . . . . . . . . . . . . . . . Textiles, Apparel & Luxury Goods 434,804 7,156,313

35,825,997

Thailand 1.6%Bangkok Chain Hospital PCL, fgn. . . . . . . . . . . . Health Care Providers & Services 23,380,320 4,678,493

Turkey 16.8%Anadolu Cam Sanayii AS . . . . . . . . . . . . . . . . . . Containers & Packaging 7,449,243 12,709,912IS Yatirim Menkul Degerler AS . . . . . . . . . . . . . . Capital Markets 3,778,811 3,230,775Koza Altin Isletmeleri AS . . . . . . . . . . . . . . . . . Metals & Mining 246,560 2,933,352Pinar Sut Mamulleri Sanayii AS . . . . . . . . . . . . . Food Products 1,189,257 9,297,124

d Reysas Gayrimenkul Yatirim Ortakligi AS . . . . . . Real Estate Investment Trusts (REITs) 14,936,027 7,392,482Selcuk Ecza Deposu Ticaret ve Sanayi AS . . . . . . Pharmaceuticals 3,052,746 2,826,117Tofas Turk Otomobil Fabrikasi AS . . . . . . . . . . . . Automobiles 200,000 709,356Trakya Cam Sanayii AS . . . . . . . . . . . . . . . . . . . Building Products 6,150,988 10,078,592

a,c TSKB Gayrimenkul Yatirim Ortakligi AS, Reg S . . Commercial Services & Supplies 3,250,000 1,111,363

50,289,073

Ukraine 0.5%a MHP SA, GDR . . . . . . . . . . . . . . . . . . . . . . . . . Food Products 109,960 1,351,958



Common Stocks and Other Equity Interests (continued)United Arab Emirates 2.2%

a Arabtec Holding Co. . . . . . . . . . . . . . . . . . . . . . Construction & Engineering 8,696,711 $ 3,196,493Aramex Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . Air Freight & Logistics 3,597,037 1,762,797

a Depa Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commercial Services & Supplies 3,395,930 1,579,108

6,538,398

Vietnam 1.8%DHG Pharmaceutical JSC . . . . . . . . . . . . . . . . . Pharmaceuticals 838,824 2,674,492Dry Cell Storage Battery JSC . . . . . . . . . . . . . . . Electrical Equipment 278,304 396,972Imexpharm Pharmaceutical JSC . . . . . . . . . . . . Pharmaceuticals 330,360 711,901Vietnam Container Shipping JSC . . . . . . . . . . . . Marine 1,049,004 1,573,035

5,356,400

Total Common Stocks and Other Equity Interests (Cost $339,609,927) . . . . . . . 291,005,156

Preferred Stocks 2.2%Chile 1.8%Embotelladora Andina SA, pfd., A . . . . . . . . . . . Beverages 1,584,300 5,350,927

Croatia 0.4%Adris Grupa d.d., pfd. . . . . . . . . . . . . . . . . . . . . Tobacco 39,041 1,416,772

Total Preferred Stocks(Cost $7,803,790) . . . . . . . . . . . . . . . . . 6,767,699

Total Investments before Short Term Investments (Cost $347,413,717) . . . . 297,772,855

Short Term Investments (Cost $4,652,361) 1.6%Money Market Funds 1.6%United States 1.6%

a,e Institutional Fiduciary Trust Money Market Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,652,361 4,652,361

Total Investments (Cost $352,066,078) 101.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . 302,425,216

Other Assets, less Liabilities (1.0)% . . . . (2,964,113)

Net Assets 100.0% . . . . . . . . . . . . . . . . . . $ 299,461,103





See Abbreviations on page 36.

†Rounds to less than 0.1% of net assets.aNon-income producing.bSecurity has been deemed illiquid because it may not be able to be sold within seven days. At September 30, 2011, the value of this security was $974,683, representing 0.33% ofnet assets.cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such asecurity cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from regis-tration. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At September 30, 2011, the aggregate value of these securities was$10,608,389, representing 3.54% of net assets.dSee Note 9 regarding holdings of 5% voting securities.eSee Note 7 regarding investments in the Institutional Fiduciary Trust Money Market Portfolio.


Templeton Global Investment TrustFinancial Statements

Statement of Assets and LiabilitiesSeptember 30, 2011 (unaudited)

TempletonEmerging Markets Small Cap Fund

Assets:Investments in securities:

Cost - Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $335,690,214Cost - Non-controlled affiliated issuers (Note 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,723,503Cost - Sweep Money Fund (Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,652,361

Total cost of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $352,066,078

Value - Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $289,522,263Value - Non-controlled affiliated issuers (Note 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,250,592Value - Sweep Money Fund (Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,652,361

Total value of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302,425,216Receivables:

Investment securities sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,198Capital shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676,116Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,034,241

Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,297,840

Liabilities:Payables:

Capital shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,964,827Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623,272

Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,313Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224,325

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,836,737

Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $299,461,103

Net assets consist of:Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $354,921,186Undistributed net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,948,319Net unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (49,683,434)Accumulated net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,724,968)

Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $299,461,103


Templeton Global Investment TrustFinancial Statements (continued)

Statement of Assets and Liabilities (continued)September 30, 2011 (unaudited)


Class A:Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $191,786,069

Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,253,873

Net asset value per sharea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9.02

Maximum offering price per share (net asset value per share ÷ 94.25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . $9.57

Class C:Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 54,646,996


Net asset value and maximum offering price per sharea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8.83

Class R:Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 687,788

Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,673

Net asset value and maximum offering price per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8.97

Advisor Class:Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52,340,250


Net asset value and maximum offering price per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9.10

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



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


Investment income:Dividends: (net of foreign taxes of $831,367)

Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,293,425Non-controlled affiliated issuers (Note 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,911

Total investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,329,336

Expenses:Management fees (Note 3a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,640,852Administrative fees (Note 3b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423,957Distribution fees: (Note 3c)

Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404,012Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391,400Class R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,028

Transfer agent fees (Note 3e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461,479Custodian fees (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263,127Reports to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,439Registration and filing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,034Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,128Trustees’ fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,827Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,339

Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,737,622Expenses waived/paid by affiliates (Note 3f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (135,734)

Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,601,888

Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,727,448

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

Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,079,148Foreign currency transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,979)

Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,074,169

Net change in unrealized appreciation (depreciation) on:Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (110,786,735)Translation of other assets and liabilities denominated in foreign currencies . . . . . . . . . . . . . . . . . . . . . . . . . (22,221)

Change in deferred taxes on unrealized appreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616,597

Net change in unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (110,192,359)

Net realized and unrealized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (102,118,190)

Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (99,390,742)



Statements of Changes in Net Assets

Templeton Emerging MarketsSmall Cap Fund

Six Months EndedSeptember 30, 2011 Year Ended

(unaudited) March 31, 2011Increase (decrease) in net assets:

Operations:Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,727,448 $ (2,403,263)Net realized gain (loss) from investments and foreign currency transactions . . . . . . . . . . . 8,074,169 18,994,515Net change in unrealized appreciation (depreciation) on investments, translation of other

assets and liabilities denominated in foreign currencies and deferred taxes . . . . . . . . . . . (110,192,359) 7,753,640

Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . (99,390,742) 24,344,892

Capital share transactions: (Note 2)Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,150,198) 93,406,423Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,132,952) 32,640,547Class R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,029 542,031Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,382,954) 51,397,180

Total capital share transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52,546,075) 177,986,181

Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (151,936,817) 202,331,073

Net assets:Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451,397,920 249,066,847

End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 299,461,103 $451,397,920

Undistributed net investment income (loss) included in net assets:End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,948,319 $ (779,129)


Templeton Global Investment TrustNotes to Financial Statements (unaudited)


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Templeton Global Investment Trust (Trust) is registered under the Investment Company Act of1940, as amended, (1940 Act) as an open-end investment company, consisting of five separatefunds. The Templeton Emerging Markets Small Cap Fund (Fund) is included in this report. Thefinancial statements of the remaining funds in the Trust are presented separately. The Fund offersfour classes of shares: Class A, Class C, Class R, and Advisor Class. Each class of shares differsby its initial sales load, contingent deferred sales charges, distribution fees, voting rights on mat-ters affecting a single class and its exchange privilege.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund’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 liabilityin an orderly transaction between market participants on the measurement date. Under proce-dures approved by the Trust’s Board of Trustees, the Fund may utilize independent pricingservices, quotations from securities and financial instrument dealers, and other market sourcesto 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 securityis primarily traded, or the NYSE, whichever is earlier. The value is then converted into its U.S.dollar equivalent at the foreign exchange rate in effect at the close of the NYSE on the day thatthe value of the security is determined. Over-the-counter securities are valued within the range ofthe most recent quoted bid and ask prices. Securities that trade in multiple markets or on multipleexchanges are valued according to the broadest and most representative market. Certain equitysecurities are valued based upon fundamental characteristics or relationships to similar securities.Investments in open-end mutual funds are valued at the closing net asset value.

The Fund has procedures to determine the fair value of securities and other financial instrumentsfor which market prices are not readily available or which may not be reliably priced. Underthese procedures, the Fund primarily employs a market-based approach which may use related orcomparable assets or liabilities, recent transactions, market multiples, book values, and other rel-evant information for the investment to determine the fair value of the investment. The Fund mayalso use an income-based valuation approach in which the anticipated future cash flows of theinvestment are discounted to calculate fair value. Discounts may also be applied due to the natureor duration of any restrictions on the disposition of the investments. Due to the inherent uncer-tainty of valuations of such investments, the fair values may differ significantly from the valuesthat would have been used had an active market existed.


Templeton Global Investment TrustNotes to Financial Statements (unaudited) (continued)


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

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 thatmight call into question the reliability of the value of a portfolio security held by the Fund. As aresult, differences may arise between the value of the Fund’s portfolio securities as determined atthe foreign market close and the latest indications of value at the close of the NYSE. In order tominimize the potential for these differences, the investment manager monitors price movementsfollowing the close of trading in foreign stock markets through a series of country specific mar-ket proxies (such as baskets of American Depositary Receipts, futures contracts and exchangetraded funds). These price movements are measured against established trigger thresholds foreach specific market proxy to assist in determining if an event has occurred that may call intoquestion the reliability of the values of the foreign securities held by the Fund. If such an eventoccurs, the securities may be valued using fair value procedures, which may include the use ofindependent pricing services. At September 30, 2011, a market event occurred resulting in a portion of the securities held by the Fund being valued using fair value procedures.

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translatedinto U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date ofvaluation. The Fund may enter into foreign currency exchange contracts to facilitate transactionsdenominated in a foreign currency. Purchases and sales of securities, income and expense itemsdenominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect onthe transaction date. Portfolio securities and assets and liabilities denominated in foreign currenciescontain 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 rates used to convert the U.S.dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fairvalue using procedures established and approved by the Trust’s Board of Trustees.

The Fund does not separately report the effect of changes in foreign exchange rates from changesin market prices on securities held. Such changes are included in net realized and unrealized gainor 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 differencebetween the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S.dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gainsand losses arise from changes in foreign exchange rates on foreign denominated assets and liabili-ties other than investments in securities held at the end of the reporting period.





c. 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 September 30, 2011, and for all open tax years, theFund has determined that no provision for income tax is required in the Fund’s financial state-ments. Open tax years are those that remain subject to examination and are based on each taxjurisdiction statute of limitation.

The Fund may be subject to foreign taxation related to income received, capital gains on the saleof securities and certain foreign currency transactions in the foreign jurisdictions in which itinvests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to applythe Fund records an estimated deferred tax liability for unrealized gains on these securities in anamount that would be payable if the securities were disposed of on the valuation date.

d. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security trans-actions are determined on a specific identification basis. Estimated expenses are accrued daily.Dividend income is recorded on the ex-dividend date except that certain dividends from foreignsecurities are recognized as soon as the Fund is notified of the ex-dividend date. Distributions toshareholders are recorded on the ex-dividend date and are determined according to income taxregulations (tax basis). Distributable earnings determined on a tax basis may differ from earningsrecorded in accordance with accounting principles generally accepted in the United States ofAmerica. These differences may be permanent or temporary. Permanent differences are reclassi-fied among capital accounts to reflect their tax character. These reclassifications have no impacton net assets or the results of operations. Temporary differences are not reclassified, as they mayreverse 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.





d. Security Transactions, Investment Income, Expenses and Distributions (continued)

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.

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 Trust’s organizational documents, its officers and trustees 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 September 30, 2011, there were an unlimited number of shares authorized ($0.01 par value).Transactions in the Fund’s shares were as follows:

Six Months Ended Year Ended September 30, 2011 March 31, 2011

Shares Amount Shares AmountClass A Shares:

Shares sold . . . . . . . . . . . . . . 5,241,163 $ 60,439,302 25,878,827 $ 301,141,103Shares redeemed . . . . . . . . . (8,198,971) (93,589,500) (18,288,797) (207,734,680)

Net increase (decrease) . . . . . (2,957,808) $(33,150,198) 7,590,030 $ 93,406,423

Class C Shares:

Shares sold . . . . . . . . . . . . . . 781,197 $ 8,980,253 5,083,134 $ 58,742,064Shares redeemed . . . . . . . . . (1,729,881) (19,113,205) (2,348,256) (26,101,517)

Net increase (decrease) . . . . . (948,684) $(10,132,952) 2,734,878 $ 32,640,547




2. SHARES OF BENEFICIAL INTEREST (continued)

Six Months Ended Year Ended September 30, 2011 March 31, 2011

Shares Amount Shares Amount

Class R Shares:

Shares sold . . . . . . . . . . . . . . 13,554 $ 148,908 58,180 $ 657,318Shares redeemed . . . . . . . . . (2,588) (28,879) (9,918) (115,287)

Net increase (decrease) . . . . . 10,966 $ 120,029 48,262 $ 542,031

Advisor Class Shares:

Shares sold . . . . . . . . . . . . . . 2,618,472 $ 30,119,209 8,788,735 $ 101,425,168Shares redeemed . . . . . . . . . (3,452,124) (39,502,163) (4,402,339) (50,027,988)

Net increase (decrease) . . . . . (833,652) $ (9,382,954) 4,386,396 $ 51,397,180

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 alsoofficers and/or directors of the following subsidiaries:

Subsidiary Affiliation

Templeton Asset Management Ltd. (TAML) 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 TAML based on the average daily net assets ofthe 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

b. Administrative Fees

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




3. TRANSACTIONS WITH AFFILIATES (continued)

c. Distribution Fees

The Trust’s Board of Trustees has adopted distribution plans for each share class, with the exceptionof 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 and R compensation distribution plans, the Fund paysDistributors for costs incurred in connection with the servicing, sale and distribution of theFund’s shares up to the maximum annual plan rate for each class.

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%Class R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%

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

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expensesof the Fund. These charges are deducted from the proceeds of sales of Fund shares prior toinvestment or from redemption proceeds prior to remittance, as applicable. Distributors hasadvised the Fund of the following commission transactions related to the sales and redemptionsof the Fund’s shares for the period:

Sales charges retained net of commissions paid to unaffiliated broker/dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $92,101

CDSC retained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,177

e. Transfer Agent Fees

For the period ended September 30, 2011, the Fund paid transfer agent fees of $461,479, ofwhich $218,149 was retained by Investor Services.




3. TRANSACTIONS WITH AFFILIATES (continued)

f. Waiver and Expense Reimbursements

TAML and FT Services have contractually agreed in advance to waive or limit their respective feesand to assume as their own expense certain expenses otherwise payable by the Fund so that thecommon expenses (i.e. a combination of management fees, administrative fees, and other expenses,but excluding distribution fees, and acquired fund fees and expenses) for each class of the Fund donot exceed 1.80% (other than certain non-routine expenses or costs, including those relating to lit-igation, indemnification, reorganizations, and liquidations) until July 31, 2012.

4. EXPENSE OFFSET ARRANGEMENT

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

5. INCOME TAXES

For tax purposes, capital losses may be carried over to offset future capital gains, if any. AtMarch 31, 2011, the Fund had tax basis capital losses of $15,384,989 expiring in 2018.

Under the Regulated Investment Company Modernization Act of 2010, the Fund will be permittedto carry forward capital losses incurred in taxable years beginning after December 22, 2010 for anunlimited period. Post-enactment capital loss carryforwards will retain their character as eithershort-term or long-term capital losses rather than being considered short-term as under previouslaw. Any post-enactment capital losses generated will be required to be utilized prior to the lossesincurred in pre-enactment tax years.

For tax purposes, realized currency losses occurring subsequent to October 31 may be deferredand treated as occurring on the first day of the following fiscal year. At March 31, 2011, theFund deferred realized currency losses of $41,007.

At September 30, 2011, the cost of investments and net unrealized appreciation (depreciation)for income tax purposes were as follows:

Cost of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $352,156,956

Unrealized appreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 39,433,117Unrealized depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . (89,164,857)

Net unrealized appreciation (depreciation) . . . . . . . . . . . . . . $ (49,731,740)



5. INCOME TAXES (continued)

Differences between income and/or capital gains as determined on a book basis and a tax basisare primarily due to differing treatments of wash sales, foreign currency transactions, passive foreign investment company shares, foreign capital gains tax and non-deductible taxes.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the period endedSeptember 30, 2011, aggregated $7,714,702 and $46,906,176, respectively.

7. INVESTMENTS IN INSTITUTIONAL FIDUCIARY TRUST MONEY MARKET PORTFOLIO

The Fund invests in the Institutional Fiduciary Trust Money Market Portfolio (Sweep MoneyFund), an open-end investment company managed by Franklin Advisers, Inc. (an affiliate of theinvestment manager). Management fees paid by the Fund are reduced on assets invested in theSweep Money Fund, in an amount not to exceed the management and administrative fees paid bythe Sweep Money Fund.

8. CONCENTRATION OF RISK

Investing in foreign securities may include certain risks and considerations not typically associ-ated with investing in U.S. securities, such as fluctuating currency values and changing local andregional economic, political and social conditions, which may result in greater market volatility.In addition, certain foreign securities may not be as liquid as U.S. securities.

9. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES

The 1940 Act defines “affiliated companies” to include investments in portfolio companies inwhich a fund owns 5% or more of the outstanding voting securities. Investments in “affiliatedcompanies” for the Fund for the period ended September 30, 2011, were as shown below.

Number of Number of RealizedShares Held Shares Held Value Capitalat Beginning Gross Gross at End at End Investment Gain

Name of Issuer of Period Additions Reductions of Period of Period Income (Loss)

Non-Controlled AffiliatesAnhui Tianda Oil Pipe Co. Ltd., H . . . . 20,271,841 — — 20,271,841 $ —a $ — $—

Impact Developer & Contractor SA . . . 12,171,000 — — 12,171,000 858,110 — —

Reysas Gayrimenkul Yatirim Ortakligi AS . . . . . . . . . . . . . . . . . . . 10,122,894 4,813,133 — 14,936,027 7,392,482 35,911 —

Total Affiliated Securities (2.76% of Net Assets) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,250,592 $35,911 $—

aAs of September 30, 2011, no longer an affiliate.





10. 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 onJanuary 20, 2012. This Global Credit Facility provides a source of funds to the Borrowers fortemporary and emergency purposes, including the ability to meet future unanticipated or unusu-ally 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 fees andexpenses incurred in connection with the implementation and maintenance of the Global CreditFacility, based upon its relative share of the aggregate net assets of all of the Borrowers, includingan annual commitment fee of 0.08% based upon the unused portion of the Global Credit Facility,which is reflected in other expenses on the Statement of Operations. During the period endedSeptember 30, 2011, the Fund did not use the Global Credit Facility.

11. 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 associ-ated with investing in those securities.

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.Additionally, at September 30, 2011, due to market events, the Fund employed fair value proce-dures to value a portion of its holdings. Such procedures resulted in a temporary transfer ofsecurities valued at $229,998,695 from Level 1 to Level 2 within the fair value hierarchy.




11. FAIR VALUE MEASUREMENTS (continued)

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

Level 1 Level 2 Level 3 Total

Assets:Investments in Securities:

Equity Investments:a

Chile . . . . . . . . . . . . . . . . . $ — $ 5,350,927 $ — $ 5,350,927 China . . . . . . . . . . . . . . . . . 1,701,460 24,025,675b 974,683 26,701,818Croatia . . . . . . . . . . . . . . . . — 1,416,772 — 1,416,772 Czech Republic . . . . . . . . . . — 2,767,194 — 2,767,194 Hong Kong . . . . . . . . . . . . . — 12,138,836 — 12,138,836Hungary . . . . . . . . . . . . . . . — 4,965,647 — 4,965,647 India . . . . . . . . . . . . . . . . . — 32,304,582 — 32,304,582 Latvia . . . . . . . . . . . . . . . . . — 2,731,240 — 2,731,240 Malaysia . . . . . . . . . . . . . . . — 9,130,814 — 9,130,814 Philippines . . . . . . . . . . . . . — 22,472,392 — 22,472,392 Poland . . . . . . . . . . . . . . . . — 2,053,627 — 2,053,627 Republic of Serbia . . . . . . . . — 5,524,374 — 5,524,374 Romania . . . . . . . . . . . . . . . — 2,142,518 — 2,142,518 Russia . . . . . . . . . . . . . . . . 3,870,455 14,216,616 — 18,087,071South Korea . . . . . . . . . . . . — 35,825,997 — 35,825,997 Thailand . . . . . . . . . . . . . . . — 4,678,493 — 4,678,493 Turkey . . . . . . . . . . . . . . . . 7,392,482 42,896,591 — 50,289,073 Vietnam . . . . . . . . . . . . . . . — 5,356,400 — 5,356,400 All Other Equity

Investmentsc . . . . . . . . . . . 53,835,080 — — 53,835,080Short Term Investments . . . . . 4,652,361 — — 4,652,361

Total Investments inSecurities . . . . . . . . . . . . . $71,451,838 $229,998,695 $974,683 $302,425,216

aIncludes common and preferred stocks as well as other equity investments.bIncludes securities determined to have no value at September 30, 2011.cFor detailed categories, see the accompanying Statement of Investments.




11. FAIR VALUE MEASUREMENTS (continued)

12. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting StandardsUpdate (ASU) No. 2011-04, Fair Value Measurement (Topic 820): Amendments to AchieveCommon Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. Theamendments in the ASU will improve the comparability of fair value measurements presented anddisclosed in financial statements prepared in accordance with U.S. GAAP (Generally AcceptedAccounting Principles) and IFRS (International Financial Reporting Standards) and include newguidance for certain fair value measurement principles and disclosure requirements. The ASU iseffective for interim and annual periods beginning after December 15, 2011. The Fund is cur-rently reviewing the requirements and believes the adoption of this ASU will not have a materialimpact on the financial statements.

13. SUBSEQUENT EVENTS

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

ABBREVIATIONS

Selected Portfolio

GDR - Global Depositary Receipt

At September 30, 2011, the reconciliation of assets in which significant unobservableinputs (Level 3) were used in determining fair value, is as follows:

Net Changein Unrealized

Net Net AppreciationBalance at Transfers Transfers Cost Realized Unrealized Balance at (Depreciation)Beginning Purchases Into Out of Basis Gain Gain End of on Assets Heldof Period (Sales) Level 3a Level 3 Adjustments (Loss) (Loss) Period at Period End

Assets:Investments in Securities:

Equity Investments:

China . . . . . . . . . . . . . . . . . . . . . $ — $ — $973,289 $— $ — $ — $ 1,394 $974,683 $1,394

aThe investment was transferred into Level 3 as a result of the unavailability of a quoted market price in an active market for identical securities.


Templeton Global Investment TrustShareholder Information


Proxy Voting Policies and Procedures

The Fund’s investment manager has established Proxy Voting Policies and Procedures (Policies)that the Fund uses to determine how to vote proxies relating to portfolio securities. Shareholdersmay view the Fund’s complete Policies online at franklintempleton.com. Alternatively, share-holders may request copies of the Policies free of charge by calling the Proxy Group collect at(954) 527-7678 or 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’sproxy voting records are also made available online at franklintempleton.com and posted onthe U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent12-month period ended June 30.

Quarterly Statement of Investments

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

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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 7/1/11, Templeton Income Fund changed its name to Templeton Global BalancedFund. Additionally, the fund changed its goal and pricing structure. Under normalcircumstances, the fund will invest: at least 25% of its assets in fixed income senior securities

and at least 25% of its assets in equity securities; at least 40% of its assets in non-U.S.investments; and in issuers located in at least three different countries (including the U.S.).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

10/11 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 Emerging Markets Balanced FundTempleton Global Balanced Fund3

ASSET ALLOCATIONFranklin Templeton Corefolio® Allocation FundFranklin Templeton Founding Funds Allocation FundFranklin Templeton Conservative Allocation FundFranklin Templeton Growth Allocation FundFranklin Templeton Moderate Allocation FundFranklin Templeton 2015 Retirement Target FundFranklin Templeton 2025 Retirement Target FundFranklin Templeton 2035 Retirement Target FundFranklin Templeton 2045 Retirement Target FundFranklin Templeton Global Allocation Fund

FIXED INCOMEFranklin Adjustable U.S. Government Securities Fund4

Franklin Floating Rate Daily Access FundFranklin High Income Fund

Franklin 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. 426 S 11/11

Semiannual Report and Shareholder Letter


Investment ManagerTempleton Asset Management Ltd.

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

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