FRANKLIN TEMPLETON - Fundsquare

, , :1, ' , . . . . . . . I .. - . ,;,, . .. .; :. - ' , , I . ... ,.. ..i' :.. : : . '

><.. . .* .i . .

Audited Annual Report

June 30, 2005

FRANKLIN TEMPLETON INVESTMENTS

FRANKLIN TEMPLETON INVESTMENT FUNDS societe d'investissement 6 capital variable

,

A U D I T E D A N N U A L REPORT FOR THE YEAR E N D E D J U N E 30, 2 0 0 5

This report shall not constitute an offer or a solicitation ol an offer 10 buy shares of Franklin Templeton Investmen! Funds (the "'Company.7. Subscriptions are 10 he made o n 1 he hasis of the current simplified prospectus accompanied by the current full prospectus, a copy of the latest available audited report and, it' published thereafter, the la~cst unaudited semi-annual report.

FRANKLIN TEMPLETON INVESTMENT FUNDS

CONTENTS

General Information Report of the Board of Directors Report of the Investment Managers Independent Auditor’s Report Fund Performance Statement of Net Assets Statistical Information Statement of Changes in Net Assets Notes to the Financial Slatemenw Schedule of Investments Franklin Aggressive Growth Fund Franklin Biotechnology Discover); Fund Franklin European Growth Fund Franklin European Small-Mid Cap C k w t h Fund Franklin Global Growth Fund Franklin Global Small-Mid Cap Growth Fund Franklin High Yield Fund Franklin High Yield (Euro) Fund Franklin Income Fund Franklin Technology Fund Franklin U.S. Equity Fund Franklin U.S. Government Fund Franklin U.S. Growth Fund Franklin U.S. Short Term Bond Fund Frmklin U.S. Small-Mid Cap Growth Fund Franklin U S . Total Return Fund Franklin Mutual Beacon Fund Franklin Mutual European Fund Franklin Templeton Global Growth and Value Fund Franklin Templeton Japan Fund Templeton Asian Growth Fund Templeton China Fund Templeton Eastern Europe Fund Templeton Emerging hlarkets Fund Templeton Emerging Markets Bond Fund Templeton Euro Liquid Reserve Fund Templeton Euroland Fund Templeton Euroland Bond Fund Templeton European Fund Templeton European Total Return Fund Templeton Global Fund Templeton Global (Euro) Fund Templeton Global Balanced Fund Templeton C;lobal BLmd Fund Templeton Global Bond (Euro) Fund Templeton Global Equity Income Fund Templeton Global Income Fund Teinpleton Global Smaller Companies Fund Templeton Global Total Return Fund Templeton Growth (Euro) Fund Templeton .Japan Fund Templeton Korea Fund Templeton Latin America Fund Templeton Thailand Fund Templeton U.S. Dollar Liquid Reserve Fund Templeton U.S. Value Fund Franklin Templeton Investments Office Directory

4 5 6 7 8

10 18 22 30 41 41 44 46 48 51 53 56 60 62 65 67 70 71 74 76 80 83 90 94 98

101 104 106 108 112 114 115 117 118 121 125 129 132 136 139 141 143 147 150 154 158 162 163 165 167 168 170

3

FRANKLIN TEMPLETON INVESTMENT FUNDS soci&b d'invcstisscmcnt h capital variablc

26. houlevard Royal, Ld4-l') Luxembourg. Grand-Duchy of' Luxembourg (Registered \vith the repstre dc coiiiiiicrcc ct civs wcitti-s. I.iir;cmboiirg, iincicr niimbcr I3 35 177)

GENERAL INFORMATION

BOARD OF DIRECTORS: Chairman TIic Hmoui-ublr NicIicil[i~ F B i u d y Chainnan and Chid t x e c u h e O h c r CIIOP1 A l i K PARTNERS. I N C 16 Norih Washington Stree: l.<i>:<iri, hlD 21601. I! S.A

Directors hlunin I.. Flariqun [resigned ellectii-e JuI) 29. LOO>! Lo-President FR4NKI.IK RFSOI:R(.E3. I N C O x Franklin Parkway 5an Xlate~~. CA 94403-1906. 1' S.A.

Richurd H. Flunk Managing Dii-ectur L3.4KlIY Okf- RSEAS IS\:ESTMELTS LIMITED 11.33 Connecticut ..\venue. X\V. Suite 300 \',ahngton nC 20O36. I! S :I

Nassiu. Lhiharrias

J u m c J , K. Ilung Presideni and Chiel Executiw Ollicer LTHAIN .LltlALS, I hC t loor 5-1. No 2.3 5ectioii 3 Jeii-Ai Road Taipei. Taiwan. K 0 C

Gqoi> F .\ohnitin Co-President FR.4XKI.lL RESOl.IRCE5, INC One Franklin P;rrku.;iy Sari \lateo. LI 9440.3-1906. L3.4

I h c )<ishi Rclrlt'nd Llirhad A. .Mum K.C V . 0 The Cottage. Lower End Farm. Easurigtori Northleach (;L5-t 3PN England. C1 K.

Grcgop L. hltGowun L:?ct~cuti\e Vice Freiident and General Counsel TEhlPLETOh \\:OK1 l)WIDE, ILC. SO0 Eaa Broward Boulevard. Suite 2100 I-o:~ ~ I u t k r d i i l F , FI. 33394-3091, L.5 '-2

[ I t J. n hlur-k Mobius Director Emeixus

7 Temasek Boulevard t f 38-03 Surwc lf.lMer One Singapore 1738i)87

h w d E. Smurt Director and C h i d Lxt.cuu~e Officer l,K.\hKI 1'4 TEklFLETON l?i\'ESThlENI IL.\NL4GL:>lENT LIMITED The :idelpiii Building. 1-11 John Adam Sireel London WCLh 6HT. England. I!.K

rht, Honciurublc Trrior G. Tr&umt .4udit Comiiiittze hlcrribrr GAKKO SECURITIES LIMITED 235 vauxhall kidge Koad Lorirlori 5 W l V 1EJ. England. L1.K.

GENERAL MANAGER: M'illlum LorkiwoJ Direc tur 1,tLZhKLlli TEMFLETOS IhTERNZiIlOhAL SERVICES 5.11 26. boulc\-ard Rqa1. 1-2449 Luxernbuurg [;raiid-Duch!; of Luxerrihourg

REGISTERED OFFICE: 26, houlevard Royl. L-2449 1 .uueinboiir: Grarlrl- i)[lchy o f L.iixcmboury!

PRINCIPAL DISTRIBUTOR :

F.O. BOX 5.7759, i . ) r o r d (:a\.. Uasiau. Bahamas 1'1:MPI.ETON GLOB.4L AD\ I W K S LlRll I I-I)

INVESTMENT MANAGERS : - FRANKLIN AD\ISEHS. INC

One Franklin Parkha). San '\lateo. CA 94403-1906, F . A . Franklin .J.gxTessiw Growth Fund Franklin Hiotechriolop,y Disco\cry f,urid Franklin European (;rowth Fund E:rankhn Europcm Small-Mid Lap Growth Fund Franklin Global Growth Fund 1,rariklin Global Small-Mid Cap Gruwth Fund Franklin High Yield Fund 1:rankIin Iligh Yield (Luru) 1,unrl Franklin Income Fund Franklin Technology Fund Franklin L S. Equity Fund Frmklin Lj,S Gwerntnent Fund Franklin I1 5. Growth Fund Franklin t' 5. Short-Tenn Bond Fund Frmklin I.! S. 5inall-Mid Cap (~r0\4lh Fund IYanklin L!,S lo td Kcturn Luntl Iernpletm ht.rgmp, Markets Bond Fund Templeton Euro Lic uid Rescn7e Fund Templeton h r d 3 n d Bond Fund Templeton European Total Keturn Fund Templeton Global Bond Fund I'emplcton Glohal Bond (Euro) Fund Templelon Glohal Income Fund (fixed income pnrtion) Templeton Global .Iot;il Kcturn h r i d Templeton I: 5. Dollar Liquid Reserve Fund

- FMLKLIL Mc-rcAL ADVISERS. LLC 101 John 1,. Kcrined) Parkway, 3rd Flodr, Shun Hills. KJ 07078-2789, C: 5 A

Franklin Mutual Beacon Fund Franklin Mutual Luropeari Furid

- FRANKLlU TEMPLETON ALTERNATIVE STPATEGIES, ILC Corporation Trust Ccnter. 1209 Orange Street. Wilmirigtun. Ddamare 19801. [!.%A. . . .

1:rankIin i empleton Glubal Growth and Value Fund - FRAKKLIK TEblPLEl~OL IkiVESTMENT hlALAGEMENT LI.\lITLLI

Templeton Euroland Fund Templeton European Fund .rempletori Glubal (hru! Fund Templeton Global Balanced Fund Templeton Global Equity Income lurid Templeton Global Income Fund (equity portion) Templeton Global Smaller Companies Fund

5 Murrisuri Street. trlinhurgh FH3 8RH. Scotldnd. I! K

- FRANKLIN IEMPLEION I h V t S l h l E h T S CORP 1, Adelaide Street Fast. Suite 2101. Tnronto O K Mi(: 3B8. Canada.

Templeton V Value Fund - FR4hKLlN ILMPLtlON IhVESTVENTS JAPAK I.I\IITED

Kanemarsu Building. hih Floor. 14-1, Kyobashi 2-chome. Chuo-Ku. .lok!o Franklin Templeton Japan I.urid

- TTFMFLETOS ASSET MALlGEMELT LIMITED 7 Iemasek Buulevard, # 38-03 Sun!ec Tower One. Singapore 038987

Templeton Asian Growth h i r i d Impleton China Fund Templeton Eaiteni Europe Fund Templeton Emerging blarkets Fund Templeton Japan Fund letripleton Korea Fund Templeton La:m America Iund lemplemn Thaildnd Fund

.Templeion G1,nbal Fund Templeton Grwvth (Lurul 1,urirl

-~ 1~EMPI.FTOU GLOBAL ADVISORS LIMITED F.O. BOX L-7759. h f d Cay, hassau, Raharnas

CUSTODIAN, LISTING AGENT A N D PRINCIPAL PAYIhG AGF.li r J F MORGAL BANK LL?ILMLIOL!KG S A fxropean Rank k Buskiesi Centre 6 route de Trtves. L-2633 Seningerberg Granrl-L)uchy uf I .uxembourg

REGISTRAR A N D TRANSFER, CORPORATE, DOMICILIARY A N D ADMINISTRATIVE AGENT: FRALKLIK TEMPLETON INII;KN.4? IONAL SERVICES S A. 26. boulevard Royal, 1-2449 Liixembuurg Granrl-Lhh) ol Luxembourg

AUDITORS: Rkiseur rrentreprise5 PRICEW~TERH0I:SECOOPE~ 5 a r I. 400. route rl'Lsch. H P. 1443, 1-1014 Luxembourg Grand-Duchy of Luxembourg

LEGAL ADVISERS: ELVINGLK. tlOSS k FRUSEEN 2. place Winston Churchill. 1-2014 Luxernihourg Granrl-L)uch) of I.uucmbourg

4


REPORT OF THE BOARD OF DIRECTORS

At year-end, total assets of hanklin -1.empleton Investment 1:unds (the “Company”) stood 3t USD 31.57 billion. This compares with a figure of USD 20.57 billion at June 30. 2003, an increase of 53.+7%.

The following changes became effective on August 31. 2004: Franklin Aggressive Growth Fund launched Class 1iacc)USD. Franklin Biotechnology I l i scove~ Fund launched Class I(acc)USD. Franklin European Growth Fund launched Class I(acc)EUR. Franklin European Small-Mid Cap Growth Fund launched Class I(acc!EI!R. Franklin High Yield (Euro) Fund launched Class I(acc)EI!R. Franklin Income Fund launched Class I(acc)USD. Franklin U.S. Equity Fund launched Class l(acc)LUK. Franklin I! S. Short-Term Bond Fund launched Class I(acc)IJSD. Franklin U.S. Total Return Fund launched Class I(acc)USD. Franklin Mutual Beacon Fund launched Class I(acc)USD. Franklin Mutual European Fund launched Class l(acc)EUR. Templeton Asian Growth Fund launched Class I(acc)EUR. Templeton China Fund launched Class l(acc)IJSD. Templeton Eastern Europe Fund launched Class I(acc)EUR. Templeton Emerging hlarkeis Fund launched Class I(acc)USD. Templeton Emerging Markets Bond h n d launched Class l(acc)USL). Templeton Euroland Fund launched Class I(acc)EUR. Templeton Euroland Bond Fund launched Class I(acc)EUR. Templeton European Fund launched Class I(acc)liU K. Templeton European Total Return Fund launched Class I(acc)EIJR. Templeton Global (Luro) Fund launched Class I(acc)EIIR. Templeton Global Bond h n d launched Class I(acc)EUR. Templeton Global Bond (Euro) Fund launched Class I(acc)EUK. Templeton Glabal Smaller Companies Fund launched Class I(acc)USD. Templeton Global Iota1 Ketum Fund launched Class I(acc)lJSD.

The following change became effective on December 13, 2004: Class BX Shares were renamed as Class N Shares

.The following share class was launched effective on Decemhei- 1.3, 2004: Templeton Global Balanced Fund launched Class A(acc)EUR.

-].he following share class was launched effective on December 20. 2004: Franklin Mutual Beacon Fund launched Class A(dis)I!SD.

-l-he Articles of Association of the Company w r e amended in December 2004 and a simplified prospectus dated December 2004 in addition to the full prospectus dated December 2004, was introduced to comply with the Luxembourg law dated December 20, 2002, relating to undrrtakings for collective investments, and especially to enable the launch in future of new funds which could benefit from the new investment opportunities deriving from this law

The following class merger became effictive on February 4, 2005: Templeton Global Bond I:und Class Niacc)EUR merged into Class N(acc)EUR of Templeton Global Bond (Euro) Fund

The folloming share class was launched effective on Februar). 28, 2005: Templeton Growth (Euro) Fund launched Class l(dis)USD

The folloning share class was launched effective on May 27, 200.5: Franklin U.S. Equity l’und launched Class A(acc)EUR Hedged

As part of our policy of offering a wide i-ange of opportunities to our investors. the following funds were launched effective May 27. 2005 :

Templeton Global Lquity Income Fund Templeton Global Income Fund

Their inrestment objectives are more fully disclosed in an updated simplified prospectus dated June 2005 as well as in the addendum dated June 2005 to the full prospectus of the Company dated December 2004.

Martin L. Flanagan resigned from the Board effective July 29, 2005

Consistent with the Company’s efforts to increase the 1-ange of choice within I’rmklin -1.empleton Investment Funds. several new funds and shai-e classzs were launched as described above, during the financial year. The Company will continue to make changes to the range of sub-funds when this is in the best interest of investors but we remain committed to ietaining investment techniques wtiich have been shoxm. over time, to increase shareholder value.

THE BOARD OF DIRECTORS Luxembourg, July 2005


REPORT OF THE INVESTMENT MANAGERS

Half way through 2005, developments have confounded the predictions of observers at the start of the year who foresaw continued weakening of the dollar (it has actually strengthened) and a rise in government bond yields (they have fallen). However, but for oil market volatility and underlying fears of an economic slowdown, equities might actually have been expected to make more substantial gains given the welter of mergers and acquisition deals earlier this year. Yet, after the meltdown of 2000-2002, investors remain wary of equity investments in general.

The final figure for first-quarter GDP growth in the U.S. came in at 3.8%, much higher ihan the initial estimate of 3.1%. Although most data points out of the U.S. have been positive, investors may be growing complacent. The apparent vigour of the U.S. economy may encourage the Fed to tighten rates beyond levels currently being discounted, especially if latent inflationary pressures make themselves felt. Unit labour costs are creeping up, even as oil prices affect corporations’ ability to increase margins. Alternatively, U.S. data could turn more sluggish in the face of higher oil costs and monetary tightening.

European markets have forged ahead. Indices like the French GAG40 up by 10.7% (in euro terms) in the first half of 2005. and the German DAX up 7.76%. By contrast, the S&P500 lost -1.7% (in US. dollar terms) and the Dow Jones 4 . 7 1 % over the same period. ln aggregate, by June 30, European indices had completed their third successive quarter of positive returns.

In many sectors, the price-earnings ratios of European stocks have been more attractive than those of their US. equivalents. Lower interest rates and bond yields may also have been helping. A weaker euro has been boosting companies that earn dollar revenue, while investors are betting that European companies will increase profiis and margins faster than companies in the US. This may be unrealistic given that companies on the DAX, for example, have already boosted their profiis by 47% over the past. three years. In addition, consumer spending remains in the doldrums and the euro’s slippage against the dollar is aggravating the effect of rising oil prices.

With bond markets sending conflicting signals about inflation and growth, endless debates about Chinese monetary policy and rising oil prices, Asian equity markets have been mixed in recent months. There are indeed growing signs that South-East. Asia has hit a soft patch, highlighting the region’s vulnerability to stiff oil prices and reliance on exports to drive growth, although domestic demand has been assuming increasing importance.

The euro declined by 10.7% against the dollar in the first six months of 2005, while the yen declined by 7.5% and sterling by 6.6%. The dollar was boosted both by sturdier-than-expecied US. growth and higher interest raies. The euro’s case was not helped by a senior Italian government minister’s suggestion that his country should abandon the single currency. Beyond these short- ten developments, the latest Bank of International Settlements (BTS) annual report reiterated the dollar‘s underlying problem. Despite a 20% reduction in the effective real value of the dollar in 2002-2004, the RIS points out that the U.S.’s record 6% balance of payments deficit at end-2004 was “unprecedented for a reserve currency country”.

Oil prices hit $60 a barrel, housing markets seemed increasingly stretched and the yield curve has flattened - yet world equity markets cont.inued to make reasonable gains in June, as they did in the previous month. However, we remain cautious about prospects for ihe rest of this year. Economic growth is fragile at best, especially in light of the steep rise in oil prices. Added to this are our mounting concerns about rampant house price growth in a number of countries, including the U.S. In this respect, it is interesting to look at developments in the U.K. There, successive rises in base rates have helped check house price inflation, without (yet) causing a collapse in real estate. But as can be seen in the U.K. (and Australia), even a mere levelling-off of house prices can trigger a sharp slowdown in consumer spending, which continues to be the main prop for many economies, including the U.S.

h b ~ c : f i e infwrnatinn sut forth is historicul und not necessarily indicative qffiiture results. All prrfbrmunce J‘gures ur-e

THE INVESTMENT MANAGERS July, 2005

totul returns in US.‘ Dollars, unless otherwise stuted.

’ ~ourct . : Rui-eeau of Economic S W L ~ S L ~ C S

Source: Dcutschr B6rsr AG ~ o u r c c : iV\mcuLers Source. R15 75th ,fiinual Kcport


I N D E P E N D E N T AUDITOR’S REPORT

To the Shareholders of Franklin Templeton Investment Funds SocititP d’investissement a capital variable

We have audited the financial statements which consist of the statement of net assets, the statement of changes in net assets, the schedules of investments and the notes to the financial statements of Franklin Templeton Investment Funds and of each of its subfunds for the year ended June 3@, 2005. These financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, elqdence supporting the amounts and disclosures in the financial statements, An audit also includes assessing the accounting principles used and significant estimates made by the Board of Directors in preparing the financial statements, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the attached financial statements give, in conformity nith the Luxembourg legal and regulatory requirements, a true and fair view of the financial position of Franklin Templeton Investment Funds and of each of its subfunds at June 3@, 2005 and of the results of their operations and changes in their net assets for the year then ended.

Supplementary information included in the annual rcpon has been reviewed in the context of our mandate but ha5 not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. We have no observation to make concerning such information in the context of the financial statements taken as a whole.

PricewaterhouseCoopers S.a r.1. Reviseur d’entreprises Represented by

Luxembourg , August 25, 2005

7


F U N D PERFORMANCE IN BASE CURRENCY PERCENTAGE C H A N G E TO J U N E 3 0 , 2 0 0 5

Launch Rase 6 1 3 5 1 0 Since Date Currmcy hlonths Year Ycrars Years years 1.aunch

9) ‘70 ?A % ‘fo % I

Franklin Aggressive Growth I h d 03Apr00 USD (3.8) 7.3 34.3 (47.8) - (48.7)

franklin thotechnology Discowiy Fund 03 Apr 00 USTI (7.4) (4.8) 40.1 (38.3) - (21.5)

Franklin European Growth Fund 29 Dec00 LUK 7.5 11.1 (3.5) - - (33.8)

- 20.5 Franklin Luropean Small-Mid Cap Giowth Fund 03 Dec 01 EUR 17.4 19.4 33.3 -

Fr-ankh Global Growth h n d 29 Dec00 USD (0.3) 9.1 19.2 - - (20.6)

Franklin Glohal Small-Mid Cap Growth Fund 15 Apr 02 USD 1.4 6.9 34.5 - - 33.6

Franklin 1 ligh Yield 1;uncl 01 Mar 96 USD 0.2 9.5 40.7 28.0 - 57.7

Franklin High Yield (Euro! Fund 17 -4pr 00 EUR 0.5 9.9 41.6 7.6 - 7.4 -

Fi-anklin Income Fund 01 Jul 99 USD 0 8 12.3 45.4 54 h - 54.2 ..

Franklin Technology Fund 03 Apr00 USD (8.8) ( 3 . 5 ) 29.7 (58.4) - (55.51

Franklin US Equity Fund 01 Jul 99 USD (2.6) 2.5 21.3 (9.6) - 40.1

Franklin U , S Government h n d 28 Feh 91 USD 1.3 3.9 10.1 28.8 66.8 91.8

- 7.3 - Franklin U.S. Growth Fund 29Aug03 USD (5.4) (3.6) -

Franklin U.S Short-Teini Bond Fund 29Aug 03 USD 1.0 2.0 - I 3.4 -

- - (2.5) Franklin U.S. Small-Mid Cap Growth 1:und 29 Dec00 USD 0.4 5.7 29.5

- - 10.8 Franklin U.S. Total Return Fund 29Aug 03 USD 1.9 6.9 -

Franklin Mutual Beacon Fund 07 Jul97 USD 1.0 10.Y 26.2 40.3 - 86.4 -

Fi-ankh Mutual European I:und (33 Apr 00 EIIR* 12.5 18.5 55.5 74.9 - 72.8

- - 41.0 I:ranklin Iempleton Global Growth and Value Fund 09 Sep 02 us13 (0.3) 10.8 -

1:ranklin Templeton Japan Fund 01 Sep 00 JPY 7.2 2.0 17.8 - - (20.7)

Templeton Asian Growth Fund 30 Jun 91 USD 5.6 25.5 77.7 51.4 7.0 41.7

Templeton China Fund 01 Sep 94 IJSD 2.7 18.3 75.6 69.Y 49.1 17.5

Templeton Easrein Europe Fund 10 Nov 97 EUR 23.0 46.0 125.9 121.4 - 153.4

Templeton Emerging Markets Fund 28 Feb 91 USD 5.8 29.6 83.3 $7.1 44.1 103.4

T’ernpleton Lmergng Markets Bond hind 05 Jul 91 IJSD 1.4 17.0 49.8 73.0 186.0 310.7

Templeion Euro Liquid Resene Fund 01 Jun 94 ElJR 0.6 1.1 4.3 11.8 23.9 27.7

Templeton Euroland Fund 08 Jan 99 EUR 12.5 1 7 7 19.1 14.6 - 45.7

Templeton Euroland Bond Fund 08 Jan 99 FUR 3.9 9.4 20.3 30.2 - 27.1 . .

Templeton European Fund 17Apr 91 EUK’ 116 1 6 0 3 7 4 4 2 2 1158 1855

- - 1 2 4 Templeton European Total Return Ixnd 29Aug03 EUK 3 2 8 4 -

8


F U N D PERFORMANCE IN BASE CURRENCY PERCENTAGE C H A N G E TO J U N E 3 0 , 2 0 0 5

Launch Base 6 1 3 5 10 Since Date Curi-ewy Months Year Years Years years h u n c h

% B s %> % 'b

Templeton Global I i n d 28 k b 9 1 USD ( 0 . 5 ) 12.2 33.9 23.9 88.2 170.6

Templeton Global (Euro) I:und 26Xpr 91 L U R 11 .1 13.8 12.3 0.6 111.2 184.5

Templeton Global Balanced Fund 01 Jun 94 USD (2.6) 9.8 39.3 38.4 93.8 110.1

Templeton Global Bond Fund 28 Feb 91 USD (381 1 0 8 47 1 66.4 9 2 6 1632

Teinpleton Global Bond (Euro) Fund 29 Aug 03 ECR 3.9 7.0 - - - 9.2

- - - - - Templeton Global Equity Income Fund 27 May 05 USD -

- Templeton Glohal Income Fund 27 May 05 LSD - - - - -

Teinplcton Global Smaller Companies Fund 08 Jul 91 USD 1 T 1 3 3 49.9 60.9 1242 2101

Templeton Global Total Return hind 29 Aug 03 lJSD (3.3) 13.0 - - - 23.0

Templeton Growth (Euro) Fund 09 Aug 00 ECJK 10.2 10.5 11.2 - - 4.9

Tcmpleton Japan Fund 23 Jun 97 USD (4.3) (5.2) (4.4) (48.7) - (41.9)

Iempleton Korea Fund 12.6 40.8 35.6 15.3 (49.9) (48.8) 08 May 95 USD

Templeton Latin America Fund 30 Sep 96 USD 3.8 51.2 140.9 67.3 - 62.1

Templeton Thailand Fund 20 Jun 97 USD (4.5) 4.8 83.7 69.9 - (23.2)

Iempleton U S . LJollar Liquid Reserve Fund 01 Jun 94 USD 0.9 1.3 2.2 10.2 37.1 42.9

- - 21.3 Templeton US. Value Fund 29 Aug 03 USI) (0.9) 4.2 -

Data source Perlormance - Franklin Templeton In\estments

*The base curreccy ol the luncl IS Euro However. perromance is shown in the cui-rency of the share class primarily lautxhed. which 1s L 9 .

All of the figures ahow are lor Class A disirihution '..4(dis)' Shares n:th all income reinvested (total retui-n) in base currency Where Class Aidis) Shares are nut available, Class A accumulation "A(acc).' Shares are sho\\tn Inlormation on othci- Share C!asses is available on request Thls report shall not constitute an olkr or a solicitation of an offer to buy shai-cs of Franklin Ternph)r i Investment Funds (the '.Company"). Subscriptions are to he made on

- of the Lurrent simplilird prtJ5pKLLlS ;iccump;iniecl by the current lull prospectus. a copy ol thc laiest availahle audited report and. il published therealter. the latest unaudited semi-annual report. The price ol shares and Income ft-om them can go down as \+ell as up and you may nut get back the full amount that you invcsted Past performance is no guarantre of future perlornurice. Currency fluctuations may a l k t the value of investments.

9


STATEMENT OF NET ASSETS AT JUNE 30, 2005

TOAL Franklin Franklin Franklin Frcnklin Aggressiqe Biotechnology ELI roxn n European

Grcwth Discovery Gvwth Srnall-hk Cap Fund Fund Fund Growth Fund

Investment in securities ai :narkel \.aluc <noLe 2ih)) Cash [ rnrc 15) Amoun~5 rcccifiiblc on sale ol investmmts Amounts receivable on subscnptions Inwrest and d i d e n d s rcccivabie. net Other receivables Lcrealised profit on Ibnrard loreigr. exchange contrws (notr 4)

29,891,176,240 86.,521.875 88.954.874 11,527,064 8.433.583 1.551.1 18,400 2.006.741 370,5$3 665.350 260.000

173,776.269 2.6Y2.839 254.416 0 0 199.453.Th4 303,123 608.845 16.930 31.800 lT0.946.687 8.273 0 41 3 7 3.217

3.638.132 139 0 1.282 3.67 I 8 .497.i l6 0 0 0 I!

LIABILITIES Amounts payable on pui-chases 01 investments AinounLs payahle on recltmiptions Rank overdralt I.nrcziiserl loss on fonvard loreign exchange cop.t~icts (note 4) Invsstment management lees payable (nute .3) Taxes and other expenses payable

TOTAL NET ASSETS

THREE YEAR ASSET SUMMARY

June 30. 2004 June 30. 20Q3 June 30. 2002

31,998 607.208 91 532.990 90,188,679 12.252 223 8 . 7 3 2 , 2 7 1

196,027.06f 2,748.914 0 0 63.24R 177.768.043 I 60.5 13 348.985 184.997 t1w08

921.633 0 0 0 2,788 2.366.836 0 0 0 0

25.137.966 68.298 73.048 y.871 6,603 25>657.363 63,616 96.493 14,059 7.822

327,888,909 3,041,341 518.526 208.927 188.469

31.570.718.303 88,491.649 89,670.1 53 12.033.296 8.54.3.802

(LJSD) (USD) [USD) IEW 20.570.500.270 87,958.140 115.770.832 19,232,785 12.953.901.758 40,440.676 90,905.142 9,364,623 8,603.916.041 18.529.492 80.979.007 10.529.047

(EIJR) 6,353,024 1.968.253 2.21 1.+83

The accompanying notes Iorm an integral

10


STATEMENT OF NET ASSETS AT JUNE 30, 2005 (cont inued)

Fronklin Fronklin Fronklir; Fiurikliri Frurikliri Frunkliri Frunklin Globul Gtohol Smull- High vield Pigh Yield licome Tech nolo5 y U S . Equity Growth Mid Cup Fund iEuroj Fund Fund Fund

Fund GroNth fund Fund IUSDI iClSD\ [I;SD\ lElJRi ilJSD1 iUSDl iUSD1

8,530,027 6,647.643 2.929.78.3.317 46,351,691 832.480.316 169.939.283 1,183,167,427 326,972 331.242 90.32 1.310 954,606 12,415,350 4.098. I 12 93.930.000

0 175.78-t 1.237.076 0 22.658.820 1.090,460 4.306.986 2.291 15,250 9.537.564 $91.673 5.1 19.283 296.712 4.279.790

24.499 9.417 58.532.383 948.820 8,788,036 i! 1.100.881 1,382 185 9.811 I! 37 4,482 13.440

0 0 0 0 0 0 0

8.884.1 7 1 7.189.541 3,089,421 481 38.736.79l) 881.461.842 175.439 049 1.286.799.524

0 26 1.449 1.697,765 0 1.259> 389 4,041,199 12 200 2 1,292 25.31 1.423 656.915 3.65 1.430 4.537,343 9.692.846

0 i! 0 0 0 0 4.069 0 0 0 638.333 0 0 4.337

7.288 >,>:I4 2.001.627 31.136 602.041 l.t'i.468 1.034.90 I r - -

8,680 7.497 2.0 13. I17 42 552 906.979 130,659 878.661 16,168 293.792 31,023,933 1,368,936 6.419.849 8.854.669 11.614.826

8,869.003 6,89 3.749 3,048 397,548 47.377.854 875,041 .r)93 i6h.584.380 1.275.184,898

(USD) [IJSD) [USD) (EUR] W D ) IUSD) IUSDI 5.526.425 7,495.Qll 2.66C.l 9 I . I73 29.321.806 558.481.201 175.68.3.174 1.245.642.754 1,956.970 1,900.9TO 2.009.282.99.7 1 I.239.I49 65.271.655 47,742.495 492,456.033 1.273.326 2.001.217 1.165.107.642 12.125.915 32.570.894 35.477.43 1 59 1,829,894

part of these linancial statements

11

FRANKLIN TEMPLETON INVESTMENT

STATEMENT OF NET ASSETS AT JUNE 30, 2005 (conLinued)

FUNDS

Fru r i kli 11 Frur,kl;n Franklin Frcnklin Fruriklir, U.S. Governmmt U S. GroA,rh U.S. Short U.S. Small-Mid U.S. Total

Fund Fund Term Bcnd Cnp Growth Retdm Fund Fund Fund

IUSD! iUSD1 (USDI IUSCI IUSDI

ASSETS 1nvest:nent in secuntics at markel ~ i l u c [notr 2(h)) Cash (note 15) Amounts rcccivahlc on salr I)[ invc5tmcnts .4mounts receirab!e on subscnptions Interest and di\idends rcceivzhlc. net Other rrceivablcs LnrcaLsrcl p d l t op. lorwrd loreign exchange Contracts (note 4)

1.381.085.51$ 26.984,33+ 56,712,429 19,179.053 35,93+,283 41.276.5 16 1. I. 35.905 $.329,658 716.697 1,817,255

0 40 3.13 1 125.399 59.2 16 0 1,462.672 2,787 386.887 106,344 583.920 6.328,279 8.806 1 82.145 4.322 307.728

212.158 247 88.807 0 51.229 0 0 0 0 0

1.430.305.139 28,535.300 61.825.325 20.065.633 38,694,415

1.IABILlf lES Amour.ls piyahlc oc purchases of investments 1.978.166 154.064 0 16.657 1.53 1 .987 ..\rriounts payable or. 1-edeiiiptions 5.254.982 1,780 396.362 80.381 241,8.32 Dank overdralt I! 0 (7 0 0 Lnrealised 1055 on forward foreign rxchange contracts (note 4) 0 0 (7 0 0 Investmcnl inanagcimnt lees payable (note 3) 7 10.748 23.4512 33.311 16,094 22.355 .laxrs and other expenses payable 1.120.666 23.722 5 5 ,('0 5 17.474 39.767

9,064.562 203,058 484.678 130,606 1,835,941

TOTAL NET ASSETS

THREE YEAR ASSET SUMMARY

June 30. 2004 June 30, 2003 June 30, 2002

(USD) (USD) (USD) IJW IUSD) I ,832.449.669 29.072.979 52.251.797 12.53E.845 13.805.183 3.493.1 50.463 0 0 3.041.517 0 1.457.881.014 0 0 2,147.620 @

The accompanying notes fonn an integral

12



Franklin Fran kl;-, hari kl I r i Fr(iriklin Templeton Templeton Templeton Mutunl lvlctucl Templetori Tevipletori Asian Chino Eostern

Beacon European Globul Gruvdth Japan Growth Fund Europe Furid Furd ond Value Fsr,d Fund Furid Fund

IUSD) [EUR) {USD) ilv I U W IUW [EIJRi

1.728.888.537 I ,187,759.705 13.947.4.32 5.320.772.900 2.026.143,231 404,705.200 763.442,790 210.087.445 11!8.h89.I2h 1.032.016 224,985.964 39.5 37.515 75.755.751 52.442.384

16.520.641 1 1.457.3 I4 68,107 89,862.194 12.480.786 3,322,304 12.363.494 Lh.636.798 19.905.666 0 52.859.+61 1.5"7,022 6.819 10.383.hI5

I $43.258 1.796.010 32.2 I7 16.(,88,711 2,415,968 1.281.9.59 5>93l ,-I89 467.623 6hh.175 1.420 0 f l . 0hb 29 101.821

8,372.597 0 D 0 0 0 0

1.992.816.899 1 .m.273,996 15.081.192 9.405.169.230 2.082.I65.588 $85.072 ,Oh2 844,675.593

36,714.601 12.436.565 11.289 89.141.640 3.188.350 2,038.289 4.172,649 9.809,$08 6,456,357 25. I57 113,517.667 10.538.980 1.991.992 10, I6 1.465

0 0 0 0 0 0 0 0 0 0 0 0 0 0

1,569.444 1,032,786 12.121 4. I Yb.h5h 2.334,225 620.870 997.997 1.687.072 1.034.518 14.550 5,097,664 2.002.876 $37.539 791.434

49,780.525 20,960.226 63.117 2 I I ,893.627 18,064,431 5.088.700 16.123.645

1,943.036.374 l.30Y.313 770 19.018.075 5.1 '33.275.603 2,064.101.147 479.983.362 828.551.948

IkUK 562.025.797 202.162.241 [email protected],188

[USDi UPY) 1 1,270,800 3.81+,126.971 7.842 488 1.102.710.758

(1 562,424,404

I U W 1.083.551.954

331,659,410 147.856.936

IUSDi 341.554,186 60,680.971 $1.300.938

(EURI 161,244,536 77.7Y3.h9h 59.690.297

part of these finmcial sraternents

13


STATEMENT OF NET ASSETS AT JUNE 30, 2005 (continued)

Terripletori Ternplctori Templeton Templeton Emerging Emerging Euro Liquid Fttroland

Morkets Markets Resewe Furid Fund Bond Fund Fund

IUSDI lUSDl iEURl lEURl ASSETS Investmcn~ in sccuriLir5 at market value (note 2(h)l Cash [note 15) Amounts receivab:c on sale of invcslments Amounts rrt:eiv:ihle on subscriptions Interest and dadends receiLable. net Other receivables Lr.realised prolit on lonvard foreigr exchangc ContiwLs (note 4)

578.965 829 227 169,668 88,186.885 1 1.324.096

1.31 0.289 957 0,644,570 3,900.75i 1.29 7,830 3,603,318

L 1.950 0 0 0

679,417,363 245.998,796

51.203.553 1.042.849. I O 0 8.869.103 69 ,009 ,041

0 1.51 1.155 541.281 9.438.337

0 0 0 224.860 0 0

60.613,937 1.12.3,033.493

LIABILITIES

AinounLs papble on redemptions 3.123.207 877,277 1,249,762 10,435,203 Amounts payable on pui-chases of investnimts 5,107.047 2.689.175 0 0

Bank owl-di-aft 0 0 0 0 I!nrc.ahscd i w un lorward foreign exch,mge contracts [note 4) 0 14.265 0 0 Investment manageinenL fees payible (note 31 861,329 193.669 18.952 877.624 Taxes and cirher expenses payable 734,007 309.236 23.503 821.127

9.825.590 4.083.622 1.292.2 17 12.133.954

TOTAL SET ASSETS

THREE YEAR ASSET SUMMAKY

June 30. 2004 June 30. ZOO3 June 30. 2002

669.591.773 241.915.174 59,321,720 1.1 10,899.539

I U W 410.302.739 236.786.187 241.052,251

(IJSD) 165,105.611 189,942.382 117 564,634

(EURI jEUR1 8c).hl2.346 627 293 995 95,715,602 280,388,152 71\25 I .491 339,264 338

The accompanying notes fonn an integml

14



Templetori Templeton Templeto? Tcrriple:o,. Templeton Templeton Templeton Eurolnnd European Europeor C;lobol GI0301 GloSal Glchl

Borid Fund Tc!al Returr- Furid [Euro) Balanced Bond Fund Fund Fund Fund Fmd

(ElJR1 (EUR) I E W USD; IEUR) {USD) iUSD)

14.260.446 556,668.342 478.9 10;582 1 .626.123.5-!1 90.308 23.006.526 i.790.(700 112.120.862

0 349.789 6.137.834 3.56T.iOh 211.786 6.079.656 7,574,966 12.434.100 362.882 1.059.717 11.679.414 3.420.706

0 65,677 632.711 96.198 0 0 103.405 0

14.925.422 587.229.707 5 12,828,912 1,757.763.1 13

787,252,345 382.033.aj2 1.890.365:546 14,728,571 29.898.4.39 12.462.9 36 2.135.233 306 56.463.022 2.469.553 3,127,934 11.259.842 1.709.312 2.9 16.3 17 27.Jr69.837

57.131) 8.028 17.191 0 0 0

808.352.16 3 4 17.984.876 1.998.038.374

0 136.48 1 9,100.I)74 0 0 2.028.425 6 1 .610m4 97.872 i5 .479 ,aa 1 .2 19.252 5.308,279 2,202,821 416.131 10.361.733

0 0 746,628 0 0 0 0 (7 0 0 0 0 0 305.256

7.836 457.799 289.081) 1.407.105 657.082 268.622 1.122.017 11.040 $32.228 328.685 1.386.288 6,52.101 404,460 2,167.916

116,748 16.506.350 1 1.684.6 19 8,101.bi2 3.5 12 -004 3.1 17.638 75.566.926

14.808.674 570.723.357 501,144.2513 1.749.66 I .44 I 804.830.159 414.867.2.38 1.922.47 1.448

IEW [ElJRi (EUR) (IJSD) (EUR) (USD; [IJSD] 7,482.972 419,865.0'0 57.088.150 1.204.252.1 12 628,666,606 275,295.098 599.028.423

1 1,968,708 136,250.+5 0 626.547.970 487,571.685 167,508.575 394,853.4217 8,630,830 ,532. I i6,881! 0 532,277,702 607.382.735 134.847.431 42.457.447

part of these ficancial siatements

15


STATEMENT OF NET ASSETS AT JUNE 30, 2005 (continued)

ASSETS InLrsLment in Seciii-ities at iiizrkeL value (note 2(bl) Cash (note 15) Amounts 1-eceivabic on sale ol in\ estments ,l:nounts recei\zbk 01: subscriptions Intcrest and di\.idecds receivable. ne1 Othci- 1-eccivahles Ilnrealisrd proh on hiward loreign exchange contracLs (now 3)

LIABILITIES rhiiounts payabic on purchases of iiivewnents r\mounLs paphlr on redemptions Back overdralt Unrealiscd loss on [onvard loreign cxchar.ge contracts (note 4) Invcstrnent management tees payablr (noLc 3) Taxes and other expenses payable

TOTAL NET ASSETS

THREE YEAR A S S E l SUMMARY

June 30. 2004 Jurx 30. 2003 Jure 30, 2002

Txnple.ori Terrlplet9r.i Templeton Templeton Ternpletcn Global Global Equity Glohnl Glohnl Smaller Glubul

Bond [ E m ) Income lricme Corripanies Toto! Return Furid Fund Fund Fund Fund (EUR! [USD) (USD) [USD) jUSD)

43.~89.451 52,837972 29,537.951 315.672.798 138.9 16.225 5.125.000 10,(356.029 3.638.829 12,90e,299 4.1 6 1 .0 12

34.360 0 103.867 1.343.551 112.489 $47,761 4.471.486 2.048.933 679.615 1.816.8ii 927.096 57.738 3 13.440 415,493 2. I 19,409

22.319 15.842 6.692 6.653 85,175 0 0 0 0 0

50.045.987 68.338.867 35.649.712 331.026.412 147,211.187

3,083,589 7.681.1 39 2.453.874 1.864.708 3,186.962 216.029 0 0 3.944.782 1.228.657

8.905 0 0 0 0 466.956 0 80.078 0 625.506

27.c772 35.955 1 8 . ~ 4 5 268.466 83,794 42.889 34.620 20.884 276.013 173.653

4.845.430 7.751.714 2.573.581 6.353.969 5.298.574

45.2170.547 60.587.153 33,076,131 324.672.443 141,912,613

W J R ) 10.132.097

0 0

0 0

[USD) (USDi IUSD) 0 358.470.924 SS,586.85$ 0 122,683,202 0 0 105.636.866 0

The accompanying notes form an integral

16


STATEMENT OF NET ASSETS AT J U N E 30, 2005 (cont inued)

Templetcn Ternpieton Terripletori Templetori Templeton Templeton Templeton Gruwth Jopor: Korea Latin Tl;oilund U S. Dollor U.S Value

[Euro) Farid Fdd America Fund Liquid Reserve Fund Fund Furid Fund [EURi lUSDi iUSDI IUSDI IUSDI IUSDl IUS01

5.822,690.536 51,783.512 77.392.881 2 3 3.7.5 5.109 82.946.452 65.105.187 7.738.784 22 1,01L>.954 6.824.421 5,397.807 710.215 6.16 1.240 44.309 .002 246.680

0 216.471 32.402 0 0 0 u 22.932.679 ‘106,292 1.7111.480 1,385,630 264.465 684.881 0 14.841.372 206.80’j 0 463,967 78.211 0 11.085

287.278 0 0 0 0 @ 0 0 0 0 0 I? 0 0

6.081.762.819 59,537.504 84.,5 33.,571> 236.314.921 89,450.368 110,100,070 7,996.54Y

7.972.686 6.792.857 0 @ 2.?7.(719 0 0 1 S.473.492 1.58.471 369.489 1.321.134 724,868 585.445 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

4.672,388 $1.223 ltJFI.TjT6 263.299 119.187 36.370 6.577 4.116,Oll 4+.396 78.602 250.632 86.71 1 68.648 6,643

3 1.2 34.,577 7.036.947 596,667 1.935.065 1.158.385 690.463 13.220

6.030.528,LSL 52,500.557 83.976.903 234,379 856 88 291 983 109.409.607 7.983,329

W R I (USE) (USDI (LJSD) iUSD) (USD) (US0 3.513.589.594 66.052.433 h6.408.096 68.S65.400 7 1,494,097 1.52.842.05 1 2.883.609 1378,949,927 23,501.833 48.246.2 15 22.965.Y50 58.495.578 126.600,750 0 1 .l28.947.618 24,339.894 54,953.722 16.067.866 45.979.817 140.51 3.103 0

part of these financial aatenietm

17


STATISTICAL INFORMATION All classes i n base cur rency unless otherwise s ta ted

Total Shares Expense Ratio OJtstand i ng Net Asset Value per Share

June 30, June 30, June 30, June 30, June 30, 2005 2005 2005 2004 2003

(see Note 131 Franklin Aggressive Growth Fund - USD Franklin ,.\y,p,rrssive Growth - A(acc) Franklin Aggressi\e Grouth - R(acc) Franklin Aggressibe Lrowth - I(acc) Franklin Aggressive Groxvth - K(acc)

Franklin Biotechnology Discovery Fund - US11 Franklin Biotechnology Discovcy - A(acc) Franklin Biotechnology Discovrry - D(acc) Franklin Biotechnology Discover) - I(acc) Franklin Hiotcchnology 1)bcwrry - N(acc)

Franklin European Growth Fund - EUR Franklin European C;i-o\vth - A(acc) Franklin European Grmvth - I(acc) Frar,klin European Growth - \(act:)

Franklin European Small-Mid Cap Growth Fund - EUR Franklin European 5rnall-S.lid Cap Growl h - :\(ace) Franklin European 5mall-\fid Cap Growth - B(acc) U5D Franklin European Small-\lid Cap Lrowth - l(accl Frznklin Europcan Small-Slid Cap Lrowth - Scacc)

Franklin Glnhal Growth Fund - USD Franklin Global Li-owth - :\(ace) Franklin Global Growth - N(acc)

Franklin Glohal Small-Mid Cap Growth Fund - USD rrariklin Global SnialI-Mid Cap Growth - A(acc) Franklin Glohal Simll-\licl Cap Growth - Narc) Franklin Global Small-\lid Cap Gro\\ th - Siaccl

Franklin High Yield Fund - LJSD Franklin High Yield - h a e c ) Franklin High Yirlcl - ..\idls) Franklin High Yield - B(dis) Franklin IIigh Yield - Ciacc) Franklin High Yield - I(dis) Pi-ankh High Yirld - N(acc)

Franklin High Yield (Euro) Fund - EUR Franklin High Yield (Eurn) - A(acc) Franklin High Yield (Euro) - A(dis) Franklin High Yield (Euro) - I(acc) Franklin High Yirld (Euro) - N(acc)

Franklin Incnme Fund - USD Frar.kiin 1r.come - Atdis: Franklin Income - Ndis) Franklin lncoine - C(acc) Franklin Income - lk~cc) Franklin Income - Yiacc)

Franklin Technology Fund - USD Franklin Technolorn - r\(dcc) Franklin Teclino!og). - Narc) Franklin Technolorn - S(acc) Franklin TechnoloD - Siiacc) FUR

Franklin U.S. Equity Fund - USD Frznklin U.S. Equity - Atacc)

Franklin L 5 Equity - C(acc) Franklin C.5 Equiiy - I(acc) Franklin 1 3 Equity - l(acc! EUK Franklin U.S. Equity - X[acc) rrsnklin U.5. Equity - s(dcc) ELR

Franklin U.S. Ciovernment Fund - USD GovFrnmmt - Atdis) Lovcmmcnt - AX(acc)

Franklin 1 2 . Govctnment - R(acc) Franklh L.S Loverniiicnt - B(clis) Franklin U.S. Gnvernmcnt - C(acc) Franklin 11.5. Go\er.nment - I(dis) Franklin 11.5. Goveriinieiit - \(a((:) Franklin U.5. Govei-nincnt - N(dis)

1.88%) 3.12% 1.0WO 2 .718

2 09% 3.33% 0.99% 2.816

2 .098 1.00% 2.85's

2.i)O'h 3 28% 1.00% 2.73%

2.1 1% 2.87%

2 00% 3 24% 2.74%

1.52% 1.52% 2.878 2.22% 0 80% 2.12'lO

1 .588 1 .588 0.89% 2 .198

1 6 9 % 2.93% 2 .298 0.90?" 2.18%

i.n5$ 3 . o m 2.60% 2.60%

1.83% 182% 182% 3 0T'lo 2 43% 0.97% 1 .00%, 2.57% 2.57%

1.30% 1.50% 2.,50% 2.50% 2. 109A 0.60'70 2.00% 2 .008

18

15.181.975.946 747,280.632 580,819.019

10.1 1 1.859

0,695,698.796 1.591.198.263

500.000 716.154.199

1.3t~1.151.461 50c7.000

535.138.028

570.224.783 22.581.602 55.500.000 53.910.637

1 [email protected] 120,056 699

33 1 ,83L.@49 53,957.756

132,987.356

11,090.833.697 368.563.158.671

16.575.329.0.39

1,338.630.63 I 489,652.643

314,a2 1.289

834,873 750 2.280.868 628

500 000 2.036 214 275

44.275.626.49 1 22,409.054.91 9 4.633.813 270

1.3.35.000 2,995.Yi4.623

35.395.670.545 353.489.960

i.4a0.91:. 124 380,506.427

72.559.638.557 3.488.441.899

8.992.806 I.853.135.534

238.105.7.Sl 11,424,466 262 2,178,147.835 2,779.087.774

143.742.901)

90.665.543.88 1 6.941.836.120

139,368.543 18,081.115 404

1,4+2.3+9 ,333 27,252,870.246

593.813.115 4.457.7.33 640

5.13 4.79

11.79 11.31

7.55 7.08

10.12 7 20

6.62 11.81 6.39

12.05 15.49 13.12 12.15

7.94 7.66

13.46 12.85 13.03

10.03 7 58 7.63

13 91 I 1.91) 11.14

10.62 7.48

10.74 10.32

11.65 11.16 14.75 10.99 13.59

4 45 4.15 4.13 3.41

14.01 11.56 11.14 12.91 12.84 10.58 8.74

1.3.39 11.05

9.31 11.26 10.16 9.32

10.47 9.75

10.90 9.35

4.79 4.52

10.62

7.93 7 53

7 62

5.96

.5.79

10 09 13 20

10.26

7.28 7.08

12.59 12.17 12.28

9.15 7.36 7.41

12.79 11.44 10.23

9.67 7.28

9.44

10.78 10.34 13.20

12.1s

4 61 3 36 4.32 3.55

13.66 11.22

12.75 12.60 10.24

13.16 1t3.80

9.32 10.8 3 9.87 9.33

10 13 9.76

10.54 9.35

3.79 3.63

6.$6 6.21

6.25

5.06

4.95

7.43 9.29

7 31

6.1 I 5.99

9.19 8.99 9.03

8.52 T.30 7.34

11.98 11.37 9.55

8.83 7.25

8.67

10 03 9.61

11.87

10.89

3 42 3.27 3 23 2.81

11.55 10.05

10 92 10.74

11.22 9.75

9.69 10.81 9.95 9.71

10.20 10.17 10.57 9.73


STATISTICAL INFORMATION (continued) A l l classes in base currency unless otherwise s t a t e d

Total Shares

Jme 30, ):.le 30, Experise Rutio Outstonding: Net Asset Value per Shore

J m e 30, 2005 2005 2005 2004 2003

June 30, June 30,

(see Note 13) Franklin U.S. Growth Fund - USD Franklin U.S. Lrowth Fund - A(acc) Franklin L!,5, Growth Fund - Btacc! Franklin I!.S. Growth Fund - C(acc) Franklin U.S. Growth Fund - I(acc) Franklin U.S. Growth Fund - SGicc)

Franklin U.S. Short-Term Bond Fund - USD Franklin 11.5. Short-Term Bond Fund - .4(dis) Franklin U.S. Short:lcrin Bond Fund - AX(acc) Franklin U.S. Short-Term Bond Fund - Bkacc) Franklin 11.5 5hort:Tem Bond Fund - Bidis) Franklin L.5. 5hort:l.erm Hond Fund - C(dis) Franklin 11.5 Short-Term Bond Fund - Itace) Franklin U.S. Short-Term Bond Fund - \(dis)

Franklin U.S. Small-Mid Cap Growth Fund - USD F i - a n k h U S Small Mid-Cap Growth - Aiacc) Franklin 1 3 Small Md-Cap Lrowth - B(acc) Franklin L.S Small Mid-Cap Groxvth - U(acc)

Franklin U S . Total Return Fund - USll Franklin L.S. .lot31 Keturn Fund - A(acc) Franklin L.5 Total Return Fund - A(dis1 Franklin L S . Total Keturn Fund - B(acc) Franklin L.S. Total Return Fund - H(dis) Franklin U.S. Total Return Fund - C(dis) Franklin 1 3 Total Return Fund - I(acc) Franklin L.S. Total Return Fund - S(dis)

Franklin Mutual Beacon Fund - USD Franklin Mutual Deacon - A(acc) Franklin Mutual Bfacon - A(acc) - EUR Franklin Mutual Beacon - A(dis! Franklin Mi tua l Deacon - Biacc) Franklin \lutual Beacon - C(acc! Franklin Uutual Heacon - I(acc) Franklin Mutual Beacon - S(acc) Franklin Mutual Heacon - S(acc) - ELR

Franklin Mutual European Fund - EUR Franklin Mutual European - A(acc) Franklin Mutual European - .4(acc) - L51) Franklin Mutual European - B(acc) - L3n Franklin Mutual European - Ciacc) - LSD Franklin Mutual European - I(acc) Franklin Ilutual European - N(acc) Franklin Mutual European - N(acc) - USD

Franklin Templeton Global Growth and Value Fund - USD Franklin Templeton Global Growth and Value - ,\(ace) Franklin Templeton Global Growth and Vdue - B(acc) Franklin Templeton Global Growth and Value - Ciacc) Franklin Templeton Llohal Groxvth and Value - I(acc) Franklin Templeton Global Growth and Value - li(acc) Franklin Templeton Japan Fund - JPY Franklin Templeton Japan - A(acc) Franklin Templeton Japan - S(acc) - EUR

Templeton Asian Growth Fund - USD Templeton Asian Growth - A(acc) ~l~empleton Asian Growh - A(dis! Ternpiton Asian Lrowth - C.(acc)

Teinpleton Asian Growth - I(acc1 H.!K Templeton .4sian Growth - S(accJ

Templeton China Fund - USD Templeton China - A(acc) Templeton China - I(acc) Templeton China - Nizcc)

Templeton Eastern Europr Fund - EUR Templeton Eastern Europe - Aiacc) Templeton Eastern Europe - I(acc) Templeton Eastern Europe - S(acc!

Tcmp;eton Asian (;ro\Vth - liacc!

182% 3.t76% 2.44% 0.97% 2.581%

1 15% 1.33% 2.35% 2 .358 2.10% 0.68% 1.85%

1 95% 3.19% 2 709c

1.20% 1.20% 2.65% 2.63% 2.21% 0.83% 1.90%

1.8,3% 1 8 5 % 186% 3.09% 2.45% ('.99'73 2.59%; 2 .618

I .86% 1.8'iB 3 10% 2 46% 0.993; 2 6 1 8 2.60%

1.99% 3.23% 2 'j6%

2 748

1 .918

0, xw0

2.65%

2 2.3% 2 26?0 2,87% 1.20?;, 1,20% 2.76X

2,56'lc 140% 3 07%

2.6t79, 1.39% 3 09%

2.563 698,189 26.2 10.880 15.375 116

500 000 36 466,321

2,248.126.511 1.003.782.902

57,606.244 1.086.684.462

320,S18. 191 258.905.000

1.1 66.205.088

,858,712.245 51,072.294

1 1 1.505.312

,986.318.866 905.248.960

4.608.196 752.164

10.929.394 500.000

469,734.385

31.288.238.276 2.0t74,998.956

186.281.134 6.36 I ,077.633 3.31 3.321.294 4.023.1 59.288 7,006,333.891 2.884.085.124

59,342,908 928 I1 6lQ.HS1875 2 282,831 793

816815223 9.322.079 319

10 127 216 264 873.564 096

827.996.155 58.975.414 39.244.743

500 000 145.18 1.6+1

+.454,1 18.316 2.183.668 2.22

56.8+7.820.365 76.206.630.801

773.570.1795 16.366.513.3+7 5.529.129.665 2.805.030.888

33.756.849.740 4.065 884

723.697.936

33,845,293 6S1 4.590.452.578 4.380.824 258

10.73 10.49 1<1.60 10.84 10.58

9.91 10.31 10.12 9.91 9 90

10.20 9.90

9.75 15.17 9.39

11.08 10.45 10.78 10.+4 10.43 10.42 10.44

44.07 36.46 44.08 22.80 13.27 11.15 23.62 19.49

14.29 17.28 16.18 16.61 12.03 12.88 15.51

14.10 13.59 13.72 14.29 13.77

792.90 5 67

13.21 12.92 11.89 12.17 10.05 18 97

10.78 11.67 11.14

21 78 14.04 21.10

11.13 11.02 1 1.06 11.11 11.06

9.95 IO 13 I O 04 9.94 9.94

9.94

9.22 14.53 8 94

10 37 10.09 10 25 10 08 I0.09

10 08

39.74 32.68

20.81 12.03

2 1.46 17.61

12.06 14.67 13.91 14.19

10.95 13 26

12.72 12.41 12.46 12.77 12.52

777 61 5.67

I(l.53 10.40 9.53 9:59

1,3.19

9.11

9.46

14 92

14.54

7.25 11.58 7.09

34 37 29 94

18 23 10 49

18 70 16 25

'1.88 I 1 33 10.88 11 05

10.22 10.117 10.10 10 22 10,13

577.67 4.09

8 19 8.18

11.88

6 57

10.87

10.64


STATISTICAL INFORMATION (continued) All classes i n base c u r r e n c y u n l e s s orherwise s l a t e d

Total Shores Expense Ratio Outstondinq Net Asset Vclue Der Shore

June 30, 2005

(see Note 131

June 30, 200s 2005 2004 2003

June 30: June 30, June 30,

Templeton Emerging hlarkeis Fund - USD Templeton Emergiq Markcls - A( .Impleton Emerging Markets - A(dis) lcniplc~cir. Emerging hlarkets - B(acc) Templeton Emerging Ilarkets - C(accj .Icinplcton Emerging Narkets - I(acc) Te:nplcton Emerging M2arkrts - Npacc) Templrton Emerging Markets - %<ace) - EUR

Templeton Emerging Markers Bond Fund - USD .Iempleton Emerging Markets Bond - A(dis) l'empl(~lon Emcrgiy Markets Bond - - EL.K T'cmplcLon Emergicg hlarkets Bond - H(dis) Templetot: Emcr,e,in,e, !vhrkets Bond - C(acc) Trmplclon Emerging Markets Bond - liacc) Tcmplcton E:nerging Markets Hond - h(acc)

Templeton Euro Liquid Reserve Fund - ElJK Tempkton Euro Liquid Kcscrvc - A(acc) Templetori Euro Liquid Resewe - Aidis! Templeton Euro I.iquid I<eservc - S(acc)

Templeton Euroland Fund - EUR Teinpleton hi-oland - Acacc) .I'r.mplcton Euroland - I(acc) Trinpleton Euroland - N(accl

Templeton Euroland Bond Fund - EUR I~empleton Euroland Bond - A(dis! Templeton Furnland Bond - Iiacc) Templeton Euroland BoKd - Stace)

1-empleton European Fund - EUR Templeton European - .4(acc) lrmpieum European - &ace) - US11 Templeton European - A(dis) - CSD Templernn Europran - I(acc) TempleLon European - N(acc) Templeton European - li(acc) - USD

Templeton European Total Return Fund - EIJR Trrnpleton European Total Return - ~Uacc) Templeton European Tohl Return - A(dis) I.emplcLori European Total Return - !(ace) Tcmplcton European .l.otal Krturn - Y\l(acc)

Templeton Global Fund - USD -rempleton L!cihal - ,\(ace) Templeton Cilohal - Aidis) Tcmp:clon GhJbal - BC Templeton Llobal - C( Templeton Glo!~al - ~ ( ~ I L c ) .l.emplt.Lorl Global - N(acc!

Templeton Global (Euro) Fund - EUR Templeton G!cihal (Euro) - A(accl .I.cmp!rton Global (Euro) - A(di5) Templeton Global (Euro) - I(acc) Teinpleton Global (Euro) - Nbicc)

Templeton Global Balanced Fund - USD Templeton Global Balanced - Aiacc)

-l.empirton Global Balanced - A(dis) Templeton Global Balanced - B(accl Templeton Global Balanced - N(acc) - EUK

Templeton Global Bond Fund - USD Templeton Global Bond - A(acc) - ELIR .Ternpieron Global Bond - A(di5) ~lcmplrlon ( k b a l Bond - A(di5) - E U K Ternpieton Global Hond - ANtacc) Templeton Global Hond - B(dis) Templeton Global Bond - C(dis) Templeton Global Bond - Ilacc) Templrton Global Bond - I(accl - E L K Tcmplrton Global Bond - Ktacc)

Te~1plt.to11 C;;obal hhllctrd - A(Xc) - ELR

2.59% 2.606 3 .848 3.19YI 1.40% 3.09 % 3.0996

1.92% 1 9 5 8 3 07% 2.548 1.00% 2.38%

0.94% 0,94% 1.8.38

1.86% 1.00% 2.61%

1.30% 0.74% 2.09%

1 8 7 % I 3891, 1.88% 1.008 2.61% 2.63'lo

1 108 1 10'h 0.82% 1.80%

I .88% 1.88% 3 080, 2.48% 0.99% 2.62%

1.94% 1.95% 1 00% 2.68B

1.69% 1.68% 1.69% 2 94% 2 17%)

1.49 1, 1.47% 1.48% 1.67% 2.91% 2 27% 0 85% 0.84% 2.15%

20

9.91 2.282.967 16.355.4-tS.07d 2,293.89 1.087

533.258.369 471.046.032

4.394.381 393 206.477 194

i2.292.207.08i 852,500.805

1.635.736.862 219.962.806

50o.ooc) 7 15.049.040

4.320 153 991 6.360.175 h94

774,352 329

66.692.381.549 8.163.110.396 4.945.243 397

1.1 34.765.679 998.805

290.588 949

23.660.07 1.547 1,830.030.542 8.246.142.997 3.147.807.620

761.815.385 868.137 754

29.943 033 639 1.744.875 599 3.447.955 212

10 196,507,272

38.286.869.881 2 3.650.380.118

2.290.495.461 891.767 890

7.1.39.304.125 5.689.754.862

5.897 651 Y81 54,334 503 123

993.857 024 129 952 563

11.400.40h.091 32.704 552

8.490,62 I 8 I3 4.020.613 423

850.832.913

24 179,572 264 70.146.725.358

2,958,878 563 7.328J47.792

16.009.404.352 6,736.460.732

10.897.937.205 600.240

4,861.681.179

2 I .82 21.60 11.75 19.55 12.88 12 28 10 16

15.48 12.7'3 14.00 14.28 11.22 17.15

5 13 4.58

10.37

14.48 12.24 9.23

10.30

10 71 10.78

15.18 18.34 17.83 12.05

18.04 14.88

11.25 10.62 10.68 11.10

24.61 23 92 16.69 14 92 12 94 17.17

13.34 13.10 11.83 1 I .88

18.06 1+.93 17.02 13.04 1 1 10

11.63 13.65 11.29 10.85 14.29 10.48 11 03 9 12

14 72

16.83 12 6'j 16.73 12 64 9.18 6.98

15.17 11.40

9 52 7.19 7 83

13.90 13.99 1 I .43 12.19 12.57 12.65 12.26 11.78

14 71 14.09

5.07 5.01 4.58 4.70

10.34 10.32

12.30 9.51

7.90 6.15

9.70 10.17

9.86

13.09 10.01 15.91 11.48 15.45 11.15

12 92 9.96 15 75 11.46

10.37 10.08

10.31

21 93 16.70 21.38 16.31 15.06 11.61 13.38 10.27 11.43 8.63 15.41 11.83

11.72 9.55 11 55 9.45

1t751

16.46 1 3 56

15 72 13 14 12 03 10 04 10 11 8 87

10 $3 10 53 12 66 12 59 10 41 10 97 9 79

1.3 26 13.18 9.72 9 88

1 3 36 12.83


STATISTICAL INFORMATION (continued) All c lasses in base c u r r e n c y unless o the rwise s ta ted

rotat Shares Outsto nd i i q Expeme Ratio Net Asset Value ~ e r Shale

JIiw 30, 2005

June 30: June 30 June 30, June 30, 2005 2005 2004 2003

(see Note 1 3 ) Templeton Global Bond (Euro) Fund - EUR Templeton Global Bond (Euro! - Akacc) Templeton Global Bond (Euro) - A(dis) Templeton Global Bond (Euro) - I(acc) Templeton Global Bond (Euro) - N(acc)

Templeton Global Equity Income Fund - USD* Templeton Glohal Equity Income - Aiacci Templeton Global Equity Income - A(acc) - ELK Templeton Glohal Equity Income - A(dis) Templeton Llobal Equity Income - Btdis) TempleLon Global Equity Income - C(dis) Templeton Global Equity Income - I( Templeton Gohal Equity Income - S(acc)

Templeton Global Income Fund - USD* Templeton Global Inco:ne - A(acc) Templeton &ha1 lnco-ne - !\(arc) - EUR Templeton Global lncone - A(dis! .lcmpleton Global Income - B(~Ls! Templeton Glohal Income - C(dis! Templeton Global Income - l(acc) Templeton Global Income - IS(acc)

Templeton Global Smaller Companies Fund - USD Templeton Global Smaller Companies - ,\(act) Templeton Glohal h a l l e r Companies - A(dis) Templeton Global Smaller Companies - l(acc) Templeton Global Smaller Companies - S(accl

Templeton Global Total Return Fund - USD Templeton Global Total Return - A(acc) Templeton Global Tola: ReLurn - A(dis) Templeton Global Tota: Return - H(acc) Templeton Global Tota: Return - B(dis) Templeton Glohal Tota. Return - l(acc) Templeton Global T o t i Return - N(acc)

Templeton Growth (Euro) Fund - EUK Tcmpleton Growth (Euro) - ,I(acc) Templeton C;rowth (Euro) - Atdls) Tempkton Growth (Euro) - l(acc) Templeton Growth (Euro) - I( Templeton C;rowth (Euro) - N

Templeton Japan Fund - USD Templeton Japan - Aiacc) Templeton Japan - N(at-c)

Templeton Korea Fund - USD Templeton Korea - A(aic) Templeton Korea - Nbacc)

Templeton Latin America Fund - USD 'rempleton Latin .4mrrlca - .4(acc! Templeton latin America - A(cli5) Templeton Latin America - N(acc)

Templeton Thailand Fund - USD Templeion Thailand - A(acc) Templeton Thailand - N(acc)

Templeton U.S. Dollar Liquid Reserve Fund - USD Templeton U.S. Dollar Liquid Reserve - &cc! Templeton L.S. Dollar I.iquid Reserve - A(d1s) Templeton L.S. Dollar Liquid Keseive - B(dis! Templeton L.S. Dollar Liquid Resene - C(acc! Templeton I! 5 Ilollar Liquid Reserve - h'iacc!

Templeton U.S. Value Fund - LJSD TempleLon C.S. Value - A(acc) Templeton I:.S. Value - Templeton U.S. Value - Templeton L S . \'slue - l(acc) Templeton US. Value - r\;(accl *The above Funds launched during the curreni year.

1 3 5 % I .35'Yo 0.85'Yo 2.05%

I . 36% 1.49% I .35% 2.65% 1.91% 0.97% 2,z 5%

135'fo 1 . 3 2 8 1.34% 2.69% 1.92% 0.86% 1.88%

1 80% 1 8 9 % I .00$ 2.59%

1 .348 I .35% 2.80'6 2 813% 0 8 5 8 2.05%

1.90% I .89% 0.996 I! 99'6 2, 64%

1.99% 2 .485

2.5916 3 08%

2.36% 2.3b'b 2.86%

2 bW?o 3 07%

0 86% 0 879: 1 6 9 % 1.6S'Yc 1 66%

1.95% 3.22% 2.50% 0.!)6% 2.70%

1.955.649.588 904,743.249

1,327,044.352 500.000

1.590.847.797 500 0013

S.194.913.180 2 19.428.005

500.000 'io0. 000 500.000

525.609.639 500.000

2.716.752.hll 62.255.522

900.000 500 030 500.000

4.910,851.541 6,143,279.797

94.500.000 488.770.748

4.001.735.133 3.768.582.324

61.331.001 228.85 3.50 1 392.960.512

3.450.688 274

$6 1.584.W690 1 11,048,139 952 95.945.212.586

1.262.493.097 3,339,254.753

8.736.607.132 177.164 778

19,076.543.010 41.894 500

2,640.309. I35 4,476.149.802 1.714.054.350

11.479.1 13.1 31 17.148.400

2,542.301.015 5,414,681.576 1.228.230.639

74.185.586 1.6.34.358.380

578.885.369 23.887.577 IS.211.676

500.000 41,790.636

10.92 10.52 1Q.60 10.79

10.09 10.48 10.09 10.08 10.08 10.09 10 08

10.00 10.38 10.00

Y .YY 9.98

10.00 9.99

28.69 28. IO 11.94 20.55

12.30 11.43 11 98 11.42 11.06 12.14

10.49 11.47 10 78

10.J6

5.80 10.22

10.78

4.38 12.31

29.39 28.82 16.03

7.68 10.1)9

10.44 0.79 9.86 9.97 0.31

2.13 1.85 1.97 2.27 1.97

10.20 10 14

I O 14

25.32 24.91

18.28

10.89 10.50 10.76 10.49

10.82

9.49 10.44 9.67

9.17

6.12 10 85

3.11 8.78

19:50 1Y 36 10.6.5

7.33 Y.71

10.30 Y 77 9.83 9.92

10 35

11.65 11.53 1 I .47 11.57 11.58

17.71 17.47

12.88

8 04

8.11

7.8.3

3.50

2.76

13.89 13.84 7.62

5.08

10.29 9.78 9.84 9.93

10.36

21


STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005

TOTAL Frur kliri Fru.iklin F rcn ki i n Franklin Aggressive Bictechnology E ii ropeo n Eurupeuri

Growth Disccer y Grawth Smnll-;fl,id Cup FJnd Fund Fund Growth Fund

(USDJ I U W IUSDI lElJRi [ELJRl NET ASSETS AT THE BEGISSING OF THE YEAR Curreric) translation adjustment

INCOME Dividends (net of \viihholding taxes) Interest on bonds (net of n%hholdin: taxes) Bar.k interest S u i i d ~ incoiiiC

EXPESSES Investment rnanagenienl lees [note 31 Administration and transfer agency lees Subscription tax (note til Custodian fees Audit, printing and pubhs1:ing exprrsrs Dank charges Class Atdis) and Clxs .4(acc) shares’ maintenance charge (note 9) Class D(dirl and Class H m c ) shares’ maintenance and senlce charges (note 9 ) Class Niclisl and Class N(acc1 shares’ distrihution chargcs (note 9) Class Cidis) and Ciais C(accl hates ’ maintenance and senrice charge (note 9) Class AX(acc! shares’ maintenance charge (note 0) Other charges Total expenses Expenses reiinhurseinent (note 12)

Net expenses

NET PKOFIT/(LOSS) FROM ISVESTMENTS Iiet reahsed prolit/(loss) on sale ol in\estments Nei 1-ealiscd prorid[loss) or. loncard foreign exchange cOnlrdCts Net realised profit/[loss) on foreign exchange transactions

PU’ET REALISED PROFI’I‘/(LOSS) FOR THE YEAR Change in net unrealised appi-eciation/(dcpre~~ation) on ’ Inwstrnrnts Foreign exchange transactiuns Fonvai-d foreign exchange contracts C~piLal gains Lax p”1d

NET ISCREASW(DECREASE) IS NET ASSETS AS A RESULT OF OPEMTlOXS

MOVEMENT OF CAPITAL Is5tte o l shai-es Redeinption o[ shares Equalisawn (note 8)

Dividends pairl/accumulated N E T ISCREASU(DECREASE) IN NET ASSETS AS A RESULT OF MOVEMEST IS CAPITAL

NET ASSETS AT THE END OF THE YEAR

6,453,024

6 453.024

20.570.500.270 87.958.143 115.770 832 19,232,784

20,529,152.806 87,958.130 115.770.832 19.232 785

(3 I.347,464! 0 0 0 0

438.572.182 212.612 8.858 264.721 123.355 447.458.172 117.934 176.184 il 0

28,958,219 40 633 7.900 9.183 1,281,262 3.774 3.423 0 0

9 16.269.805 334,370 189.098 272.621 132.738

248.579.539 838,700 1.005.760 170,3i’i 71.333 62.69Y,P26 230. I I7 479.161 55.548 23,813 12.596.975 42,540 50.737 6,16+ 3,629 9.229.010 6.081 9.244 7,556 3,803

99,780,468 406,173 4 1 8 . 2 3 48.196 32.423

16.6+3.044 52.195 217.799 0 2.557 11.932,528 265 47.655 40.736 5,432

1.696.746 0 0 0 0 473.040 0 0 0 0

5,631.275 19.684 27.282 4.359 2.415

6.900.309 23,Y87 33.772 4.564 2.135 151,926 555 0 61 6.666

476,314.686 1.60t7>297 2,2SY,679 297.539 154.206 ( I ,38,5,282) (13Y) 0 0 (15)

473.929.fW 1.630.1 58 2.28Y.67Y 297.539 154.191

441.340.431 (1,2Y4.788) (2.100.581) (23.918) (21.353) 652,269.2 15 8.800.250 8,044.692 136.557 577.323 [ 15.425.88.31 il 0 0 0

2.173.897 0 (3.184) 68 1 (2.734)

1.080.358.660 7.537,462 3.Y40.927 1 12.320 553.136

1,923,184.504 i 1,964,233) (8.389.938) 729,890 842.219 (7.056.1941 0 0 (269) 223 R.096,94Y 0 0 0 0 (272,108) 0 0 0 0

811 .941 1.395.578 3.004,311,81 I r 3 . r - I I 3.229 (4.449.009)

20.730.934.173 08.879,178 31.569.355 4.568.418 6.110,523 (12.308.743.743) ( 1 03.7 18,898) (5 3,221,025) (12.599.848) (5.415.323)

23.880.397 0 0 0 0

8.446.070.827 (5,039,720) (21.651.670) (8,031,430) 695.200 (408.8 17.14 1 ) 0 0 0 0

8.037.253.686 (5,030.720) (21,651.670) (8.001.430) 695.200

31,570.718.303 88.491.649 89.670.153 12.043.296 8.443,802

213.92% 39 7396 7.91 % 19 1.7070 Portloho Turnover Ratio (note 17)


22


STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 (continued)

Fruriklin Fron kli n Frun kl in Franklin Fmnklin Franklin irurikliri Global Glubul Srnull- High Yield HiGh Yield Income Technology, U.S Equity Growth Mid Cop Furid [Euro) Fund Fund Fund

(USD! {USD) IIJSD) # O R ] [USD) [USDi (LlSD)

5,526,425 7,595.91 1 2,660.191.173 29.42 1.806 558,481 -201 175.683.174 1,245.642.754 0 0 0 0 0 0 0

5,526,425 7.59.5.91 1 2.66O. 191, IT3 29.321 806 558.361.201 175.683.173 1.245.642.754

Furid Gromth Fund Funo

136,998 48.468 0 0 13 131.607 790.577 17.493~554 0 0 223,828,336 2.837.468 26,346,364 306,033 12,547

6,084 8.328 2,211 451 3 2 998 756.145 444 1.550.233 0 0 222.386 123 17.131 13.509 245.190

1 13.082 56.796 226.262.17.3 2.880.58Y 40.261.247 1.1 10.573 19,301,624

7 1.405 67.89 5 23,329.010 3 13.638 6,035,012 1.781.272 13.350.597 33.955 24.052 6.326.942 104.080 1,642.677 434.461 2.957.207

3,754 3.449 1,397.746 20.424 371.175 90,372 640,982 1,963 1.797 216.209 8,808 60.676 12.926 I17.179

86 0 738 569 1.354 963 1.778 31.113 21.867 1 1.38 1.279 89.898 2,094.753 836.096 5.877.140

0 11 .D99 I .5 13.856 0 3.592.194 35378 430,460 1L7.935 21,856 42.700 167.632 395,003 91,606 709.038

0 0 49,L!24 0 $72,468 0 34,144 0 0 0 0 0 0 0

2,240 2,629 703.585 7,952 144.877 41.459 3 11.963

1.57.268 156,530 46.356.343 722.706 14.99 3.168 3.376.254 24326.477

1.817 2.288 885.254 9.705 182.979 51.721 394,980

0 0 (9 8111 k) (37) 0 (949) 157,268 156.530 46 346,932 722.706 13.993.131 3.376.254 24,825 528

is+,im (99,734) 179.915.641 2.13.7.883 25.268.1 I6 (2,265,680) (5,523.904) 213.944 116.938 ($7,818,751) (63.261) 15.261.619 6.375.906 80.347.569

0 0 0 (43.12'j) 0 0 0 3.768 (4.650) (12.081)) 7,303 7.120 12.369 (276,(195)

174.526 12.554 132.084.801 2,058,800 40.536.855 4.122.595 74,543.570

393.795 407,814 1.30.89 1 >151 1,322,627 .3,5,12 1.95 1 (9.OIO.I 31) (38,690.3871 (298) 1.31 I 0 22.007 0 18 i166)

0 0 0 (670.331) 0 0 (4,3371 0 0 (1 0 0 0 0

568.023 321.679 262.975.952 2.: 33.100 75.658.806 (4.887.5 18) 35.848.680

4.202.307 3.452.901 1.567.130..3+.3 S2.668.620 521,476.823 131.288.264 1.040.539,739 (1 ,427,752) (4,476,7421 t 1,253.280.0831 (35 .953331 (256.213.720) (135,499,5401 (1.046.846.475)

0 0 1.322.841 569.917 412.870 3 0

2.774.5.3.5 (1,123,841) 3 15.18 3. I O 1 17.285.25+ 265.774.97.3 i3,L 1 I .276) (6.306.738) 0 0 (179.952.678) i2.062.306) (23.872.987) 0 D

2,774.555 \ 1,123.841? 135.230.423 14,222,948 240.901.986 (4,211,276) (6.306.7.36)

8.860.003 6,893.749 3.058.397.548 47.377.85$ 875,031.993 166.5.84.380 1,275,184,698

90.17'k 109 96% 29.519, (25.83%) 98 14% 57.27% 56.26%

part 01 these financial statements

2.3


STATEMENT OF CHANGES IN NET ASSETS FOR T H E YEAR ENDED JUNE 30, 2005 (continued)

Fron klin Franklin Franklin F ran kl in Fro n kliri U S. Govewrrient U S . Grcwth U S. Short C l S . Small-Mid U.S. Total

Fund Fund Term Bond Cop Grow:h Return Fmd Fund Fund

(USDi [USD) (USD) jUSD) [USDi 1.832.449.669 29,072.979 52.251.797 12.536.845 13,805,183

0 0 0 0 0

1.832.449.669 29.072 979 52.251.797 12.536.845 13.805.183

NET ASSETS A I THE BELINSISG OF THE YEAR Currency tiaiisiation a d p t m m

ISCOME Di\:dends (net ol withholding raxcs) InwrrsL im hotids (net o l withholding taxes! Dank interest Sundiy income

0 260.752 0 57,247 0 87 S65 741 6.846 2.352.082 17.980 1 .0 32.037

1.183.943 8.081 58 18 31 66.088 61 $8 132 0

88,715,772 275.740 2.352.188 75,377 1 032 068

EXPENSES In\estment nianagcmrnt fws ( n i w 1) Ad:ilir.istration and transfer aglrncy kes 5uhscripLion t a (nore 61 Cuslodian k e s AudiL, printing and publisliinR expenses Bank charges Class A(dis, 2nd Class Aiacc) shares’ mamtenancc charge (note 9) Class B(clisl and Class Rizcc) shares’ rnainienancc and service charges (note 9 ) Class Nidisl and Class N(acc) shares’ distribution charges (note 9) Class Cidis) and G z s s C(acc1 shares’ miintcnance and senice charRe (niw 9) Class XY(acc) shares’ maintenanw charge (now 91 Other charges

Total expenses bpenscs rcimhursmient (note 12)

Ket expenses

9.784.352 278,994 419.796 165,517 17+,830 3.687.612 59,576 154.256 57,134 61,273

675.636 13.915 32.274 8.789 13,326 113.818 2,595 5.255 1.229 2.568 56 I .3 12 7.079 18,004 i .304 5.154

8.295 1.229 1,030 I 86 164 2,963,769 135.805 8 I .960 7L.133 59,612

3.083.598 5,297 179,480 13.539 1.157 518,386 3.176 109.882 11,182 29.966

179.888 592 31,256 0 99 1 369.927 0 52.607 0 0 44 1,287 1P.307 15.104 3.887 3.740

22397.880 5 19.496 1,100.90$ 339.901 353.781 (212.1 591 0 (88.8071 0 ( 5 I ,2291 . , I

22.in5.721 519.496 1 [email protected] 339,901 302.552

NET PROFIT/(LOSS) FROM INVESTMESTS Net I-calisrd profil/(!oss) on sale of inrestincnts het rcaliscd profid(loss1 oii forward foreign euchangc contracis Let realiscd pi-ofit/(loss) on h c l g n exchange transactions

KET REALISED PROFIT/(LOSS) FOR THE Y E A R Change in net unrcalised sppiecia~ion/(dlrprc~iationj on: In\ estmems Foreigr. cuchanglr Lracsactions Fonvard hreigri exchange conti-acls CapiLal gair.5 tax paid NET IXCRE.4SE/(DECREASE) I S NET ASSETS AS A RESULT OF OPEKATIOSS

MOVEMENT OF CAPITAL issue of sharlrs RcderIipCon or shares Equalisation (niitc 8)

1)ividends paidhccumulated NET ISCREASE/(DECKEASE) IN NET ASSETS AS A RESULT OF MOVEMEST IN CAPITAL

KE-r ASSETS AT THE END OF THE YEAR

66.530.051 (243.756) 1.340.091 (264.524) 729,516 (1$.934.466) (879.387) (327.028) 430,849 161.690

0 0 0 0 0 0 0 0 0 (57 I )

51.595.585 (1.123.143) 1.013.063 166.325 890.635

15,002.156 59.243 (1.955) 982.6 10 530.496 (7 0 0 0 (2301 0 0 0 0 0 0 0 0 0 0

66.597.i-tl (1.063.900) 1,011,108 I ,148,935 1.420.901

324.823.016 1.379.281 49.523.202 12.303.742 31,519.695 (735.350.588) ( I ,056.1 18) (40.162.102) (6,043.495) (9.228.18,5)

( I .28,5.674) 0 12.045 il 37,621

(41 1,813.246) 323,163 9.373.14~5 6,249,247 22,329.1 31 (65,933,587) 0 (1,295,403) (1 (696.741)

(377,146.833! 323.163 8.0i7.742 6.249.247 21.632.390

1.421.300,577 28,332.232 61.330.647 19.935.027 36.858.474

4.8991, 86.17% 2 I ,35% 52.948 190 24% Portlolio Tun:o\er Katio (note 17)

The accomparqing nixes lorm an integral

24


STATEMENT OF CHANGES I N NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 (continued)

FI o n kli ri Fronklin Froii kl i n Fanklin Templeton Templeton Templeton Mutual Mutuul Templeto-, Terpleton Asiun Chino Eastern

Beacon European Glubul Grow+ ]croon Giowth Fund Europe F d Fund and Value Furid Fund Fund Fund

IJSDI IEUR) IIJSD! UPYi {LJSD) [USDj WRI 1.356.391.722 562.025.797 1 1,270.800 3.814.126,971 1,083.551.954 341.554.186 161,245.5.36

0 0 0 0 0 0 0 1,356,391,722 562,025.797 11,270.800 3.814,126.971 1,083.54 1.954 341.554.186 I6 1245,536

26,072,761 2 1.833.808 234.134 -17.877.270 55.543.937 13.137.242 16.149.760 9,571,838 5,271,040 0 0 0 0 0

232.030 1,404.874 1 I .086 (7 1.686.960 835,093 681.038 35.468 181.793 0 0 2.218 9.113 0

34.912.107 28.691 3 1 5 247.221 47.877.270 57.233.115 13.981.458 16.830.798

17.120.530 3.948.205

343.424 462,124

3.986 6.677.258

2,284.234 2.417.643

337.734 0

458.031

887,580

8,957.654

-169.864 3$7,729 212.855

11.029 3.711 335

303 390 1,089,564

68.156 0

170 186

2,046,246 123.692 43.225

6.318 3.888 3.519

u X.177

9,690 20.149

2:539 0

3.636

45.308.105 12.439 .9 36 2..333.369 1,567.448 1.255.245

(7 16.222.685

D 15.661.377

0 0

1.086.775

I 9.81’3.848 3.407.892

7 52.366 1264.910

356.716 946

6,h38,034

0 370,099

32.019 D

284.698

6,433.766 I .080.064

209.967 372,912 108.241

5,162 1,987,835

0 26.720

0 0

86.436

6.658.588 1.068,300

235.602 652.092

74,979 5,261

1.707.133

0 485,932

0 0

81.308 34940,749 17.488.008 266.943 95.884.960 3291 1,528 10.3 1 1.1 0 3 10.869.19.5

(290) (735) 0 0 (41.0671 (29) (39.8981

10.929.297 10.31 1,074 34,940,459 17,387.273 266,933 Y 4.884.960 32.870.461

97 1.638 11.204.242 (21.722) i48,O07.690) 24,362.654 3,670,384 7.901.50 I

(15.765,463) 0 0 0 0 0 0 51,993,112 26,078,396 1.134, i l l 90.45 1 ~ I22 $5.552.667 5,726.236 52.808.787

5.100.441 303.081 5.488 (4,887,704) (1,727.134) 36.332 (968,752)

$2,299,708 37,586.71Il 1. I 18.477 37.555,728 68,188,187 9,332.962 57.7+1.536

126,381235 135,644.883 66.O59 122.079,hTJ 218.796.788 55,473,673 99,973,167 (6.820.098) (145.755) (.36h) 19,570 (96.895) 5.362 106.098 10.413.003 0 c7 0 0 0 0

0 0 0 D 7 1 ,000 0 0

147 ,9 10.80 1 172,273,998 173.084.847 1183.17C 1 i9.6,54>969 286.959 -080 64.91 I .997

1,593.937.130 1.201,817.660 5.1138.375 4.457.451.616 1.762.364.1.38 31 1,136,649 751.699.882 (1,179.599.187) (623 .0 12.279) (2.475.239) (3.237.957.953) i1,047.98.3.623) (234,494,350) (242.304.271)

132.634 0 0 0 2.230.397 0 0 414,47$,578 578.805.381 2.563, I36 1.2 19.49.3.663 706.610.912 76,642.299 509.395.611

(103,86+) (4.603.255) (31) 0 (13.020.789) (3,125.120) 0

509.395.611

1 ,943,036.374 I .309,313.770 I5.018.C)75 5.193.275,603 2.c764.101.1’57 479,983,362 828.551 .938

414.370.714 574.202.126 2.563.105 1,2 19,49 3.66 3 693.590.123 73.517.179

(18 498) (3.20%) I04.78:Yc 277 54% (9.32%) (26.02%) 39.93%

part of these Iinancial statements


STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 (continued)

Templeton Templeton Templeton Templeton Emerging Ernergirig Euro Liquid Eurolund

Murk& Murkets RRFRWR Furid Fund Bond F i l m Fund

IUSDI lUSDl IELJRI lEURl

NET ASSETS AT THE BEGISNING OF THE YEAR Currency ti-anslation adjustment

310.3fi2.739 165.105,Gll 89,612,346 627.293.99'5 0 0 0 0

410.3@2,739 165,105,611 89,612.346 62 7 293.995

INCOME Dividends (net of withholding taxes) lIltfre5t on bonds (net of withholding taxes) Hank interest Sundry income

1t1.123.437 0 I7 22.R4$,760 0 12.78 3.342 1 ,0$9,415 10,750

7.621 5,583 379 16 535 16 904.348 12.890.037 1.521.875 23.Y40,228

773.290 101,112 372.081 i.06a.183

EXPENSES Investment rnanagement lees (note 3) Administration and transfer agency lees Subscription tax (note 6) Cuslodian Ires ..\udit. printing and publishing expenses Bar.k charges Class Acdis) and Class : \ k c ) shares. maintenance chsrge inotc 9) Class H(dis) and Class B(accj shares' rnaintcnance and s<rv!ce Charger (note 9) Class xiidis) and Class N(accl shares' distiibution charges (note 9) Class C(dis) and Class C(acc) shares' maintenance and service charge (note 91 Class .AX(accj shares' maintenance charge (note 91 Other charges

Total experscs Expenscs reimbursement (note 12)

Net expenses

NET PRoFi~rmoss) FROM ISVESTMENTS Let rralisecl prolit/(loss) on sale ol in\ estments Net realised proht/(loss) on Ior\*.ard foreign exchange contracLs Net rcaiised prolL/(loss! on foreign cxchange transactions

NET KEALlSED PROFIT/(LOSS) FOR THE YEAR Change in net unrealisecl appreciation/(depreciation) on InvestmenL\ ForeiRn exchange transac'tions Fonvard lort.ign exchange contracts C a p i d gains tax paid NET ISCREASU(VECREA5E) I S NET ASSETS AS A RESULT OF OPERATIOSS

MOVEMENT OF CAPlTAL ISSUC u l s h e s Redemption of shares Equalisation (nok 8)

Di\idends paid/accuinulated NET INCREASU(DECREASE) IS NET ASSETS AS A RESlJLf OF MOVEMENT IN CAPITAL

NET ASSETS AT TlIE E S D OF T H E YEAR

8.232.836 1.926.085 294.179 8,064.187 1.541,512 52 5.004 249,458 I .783.233

272.363 98.607 6.906 409,092 T14.7YO 128.820 1 ~ 2 8 397.600 134.$23 55.167 25.372 212.162

0 2.740 1.989 0 2.215.065 781.5 18 62.039 3.659.608

311.144 289.025 0 0 452.82 1 109,898 107.361 $22,219

75.092 22.516 0 0 0 0 0 0

I 16.834 $3,416 20.623 167.789

13.866.881 3.981.7'36 786,565 15.115.890 (668) 0 0 (1.818)

1.3.866.213 3.981.796 786.565 15.1 14.072

3.1738.135 8,908.241 735.310 8.826.176 30,108.357 3.848,216 tJ 2 1.102.97f

0 0 0 0 (135.544) (102.43O) 0 (260)

33,010.948 12.654.017 735.310 29.928.870

91.41 2,560 15 393.383 39.765 118.938.285 (32.312) (48.182) 0 0

0 (1Jr.265) 0 0 (5 3 I 1 os? 0 0 0

124,338,088 28.~784.9S.3 774.675 148.877.155

408.690.574 15b.553.925 132,855,745 798.576.290 (272.1 10.506) (99.199.836) (162.833,265) (460.125.333)

128.415 402.88-1 (19i.066: 0 136.708.484 57,756,973 (30,172,576: 338.450.937

(1,747.438) (9.032.36.3) i892.725? (3,722.568)

134.950.946 48.724.61 0 (31 064 301) 3 34.728.389

669 5'31,773 241 (315,174 59.32 1,720 1.1 10.899.539

10 00% (1 24%) N/A (27 06%) Portloho Turnowr Katio (note 171

The accompanyng notes form an integral

26


STATEMENT OF C H A N G E S IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 (continued)

Templeton Templeton Tern pleton Templeton Templeton Templeton Templeton Eurol~nd hiropeon x o p e a n Globul Globol Globol GloSol

B u d Fund Tctal Retilrn Fund (Euro) Balanced aond Fmd Fund Fund Fund Fund [ E i l R ) IEURi lEURl IUSDl IElJRi IUSDI iUSDl

7,482,972 41 9.865.040 57,088.150 1.204.2 52,112 628.666.606 275,295.098 599.028.323 0 0 0 i) 0 (? 0

7 , 4 8 2 , ~ ~ 419,865,040 57.188.150 1,203.252.112 628,666,606 275.295.098 599,028,423

0 13.270.543 0 34-05 1.590 17,161.3.34 5.595.746 0 382.560 3,920 8.453.893 0 0 4.268,054 43.21 7.942

12.387 371,010 148.665 I .573.885 304.971 325.861 812.048 0 20.786 127 71.323 35,261 12.649 15,22,5

395,047 1.3.666,259 8.603.685 35,696.798 17.501.666 10.302.3 10 45.045.215

67,113 4.598.782 1,639.415 14.,518.507 h.905.hS1 2,743,507 7,863.875 34.464 1,0,55>3 3 1 524.166 3.388.705 2.171.969 833.497 2.625.884

5,5 1.3 231.315 129,581 7.37.94Y 352.383 182.856 584.423 3.947 206,810 71.386 486.1 39 246.860 150.168 791.025 2.578 130.427 30.653 396.991 198,399 92.855 222,166

393 9.980 180 0 1,788 1.370 0 25.984 2.1 13.870 477.352 6.487.854 3,309.502 1,533.847 2.168.022

0 @ 0 473.195 0 461,6 15 2.938.615 7.008 2.59,83,5 497.946 814,681 10.244 93.795 612.817

0 0

0 0

0 79,627 0 0

0 0

0 288.453 0 50.506

2,313 103.662 24.138 314.708 158.078 75,127 17.5,T-t-t 149.3 I3 8,710.012 3.404.8 I7 27.898.356 13,454,964 6.168.637 18,331530

0 (2.220) (632.711) (T20) (641 0 (17>19l) 149,313 8.X7.792 2,772.106 27.897.636 13.$54.900 6.168,637 18.314.339

245.734 4.958.467 5.831,57!> 7.799.162 4,046.766 4.133.673 26.730.876 (2.93 1) 19,3 10.190 243.557 56.029.556 13.913.330 I9.638,659 17.642.427

0 0 (141 338) 0 0 0 0 567 I 90.86 I (82,358) 224.391 (22,180) (206.674) 1.080.940

243.370 24.459.518 5.850.940 64,053,109 17,937.916 23.565.658 45,453.233

679,222 46,589,623 10.7 5 5 .hOO 97517.761 77.707.668 8,432.866 2.52 1,140 t 183) 7.630 21.857 (5 1.924) 34.458 (77.607) (465.271)

0 D 86,817 0 0 0 (305,256)

922,409 71,056,773 l6.71,5.214 I61.518.946 95.680.042 3 I ,920.9 17 +7,205.156

1 1.6 1.5138 491.918,916 527.608.7+4 834.435.524 203,555,860 256,8+5,997 1.778.565.513 (5.027.6541 (309,848.729) (9'5.324.726) (446.58 1,2841 (120.55~7>719) (145.451.132) (477.927.774)

82.3+t (94.953) 692,291 1.063.787 171,534 173.953 I .9 10.606

(266,535) (2.173.690) (5.635,38c1? (5,027.645) i2.683.174) (3.91 7.595) (26.310.37b) 6.669.828 81,975.234 $32,976.309 388.9 18.028 83,176,685 11 1.568.818 1.302.548.344

6.403.293 79.801.544 327.34c1,(129 383.890.383 80.493.41 1 107.65 1.223 1,276.237,869

1 3,808,674 570.723.357 401.144.293 I ,739.661.441 804.84D. 159 414367,238 1.922.471.448

(h2.08'b) (49.59%) 5.77% (2.2981 7.208 (7.86%) 3.429;

part of these hnanclal s1atciiients

27


STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 (conl inued)

Templeton Templeton Templeton templeton Globul Globul GI& Glubul Srriallei

Bond [Euro) Equity lriconie Income Compgnies 1 Fund Furad Furid Fdrid IEclRl I U D ; IUSDI lUSDl

Templeton Global

-otc 7etiirn Fund

ilJSD) - NET ASSETS AT T H E BEGINSISG OF THE YEAR Cut-1-ency translation adjustment

I I). 1 32.00 7 0 0 358 470,924 SS.586.853 0 c) L) 0 0

10~132.007 0 0 358,470,Y24 44,586.854

INCOME Di\ idecds (net of withholding taxes1 IntereSt (in honcls (net ol withholding taxes) Bank interesi Stindiy ir.come

0 06,857 34.298 7,358,801 0 1 ,O82,T6 1 0 39.473 0 3.967.299

14.739 31.754 15.352 240.985 1.715 0 (1 0 2.735 1.968

1 ,09 7.500 128.61 1 99,123 7.612.521 3.970.982

EXPESSES 1nvestmer:t inanagcment ~ E S (note 3) Administration and Lransler agency lees 5uhscription lax (note 6) CusLodim fees Audit. pnnting and puhlishing expenses Rack charges Class A(di5) and Class Acaccl shres. mainteni:rice charge (note 9) Class B(clis) and Ciass R(acc) shares. inaintrnancc and service charges

C:lzss \(dis) and Class S(acc) shares. distribution charges (note 9) CLss Cidisl and Class C(acc) shares' mainienancc and service charge (note 91 Gas5 AXtacc) shares' maintmance charge (note 9 ) Other charges

Total expenses Expenses reimbursement (note 12)

kct expenses

(nuiF 9)

NET PROFlTI(L0SS) FROM INVESTMESTS Net 1-ealised profid(1tiss) on sale ol investments liet I-ealiscd prolid(13ss) on forward foreign exchange contracLs kct rcalised profi~/i!ossl on foreign exchangc transactions NET REALISED PROFI-r/T/(LOSS) FOR THE YEAR Change in nei unrealised appreciatioi~(dcprcc~~tiun) on' In\,estmetits Forcigr: exchange transactions Forward toreign exchange cuntracis Capital gains tax piid KET ISCREASU(DECREASE) is i w r ASSETS AS A RESULT OF OPERATIOSS

MOVEMENT OF CAPITAL Issue of sharrs Kedemption ol shares rquiisatioii (note 81

1)ividends paicVaccumulated

NET ISCREASY(DECREASE) IN NET ASSETS AS A RESULT OF MOVEMEST 1N CAPITAL

NET ASSETS AT THE END OF THE YEAR

211,724 65,033 16.331 16.632 5.480

525 63.631

0 64.60 1

0 0

4.441)

37.755 7.782 7.364

272 334

0 18,25 I

2.171 1

4 0

420

20.1 34 4.987 4.428

272 274

0 1 1,590

866 5

4 0

323

3,387,605 811.111 166,587 163.++7 103.172

4.782 1.6,51.575

0 80 121

0 0

82.716

596,833 189,238 45,075 59.884 16.250

'336 182.683

24.505 166.666

0 0

13.114

448 $07 74,369 42.884 6.45 1.1 16 1.295.184 (22 318) (15.841: i6.692) (259) (85,175)

426.08Y 58.528 36.192 6.450.857 1.210.010

671.411 70.083 62.93 I 1,161.664 2,760.972 97,558 9170 1.386 55.7+.623 860.240

(187,711) 0 0 0 911.513 7,792 148,059 9,231) (61.5651 (1 5,942)

S89.050 2 I9.0-tZ 73.547 56,844,722 +,516.78.3

1.903.9 18 (29.114) (14,560) (17,248.61 1) 790.204

(47 1.445) 0 (80,078) 0 (634,617) 42.890 37.097 1.878 27,968 (23.106)

0 0 0 (29O.[!OL7) 0

1.964.413 227,925 (1 9.21 3 ) .30..3.34,079 S.648.164

44.628.023 70,319,903 33.022.059 220.689,582 140,223,701 (11.336.889) il0.008.845) (9.944.849) (292,077,917) (45.049.5641

509.688 48.169 18,134 (141,lTOl 161.526

33.800,822 60.359.228 33.095.344 (71.529.505) 95.336.663 (696,785) 0 0 (1,603,055) (2.659.168)

33.104~737 60,359,228 33,095.344 (73.132,560) 92,677,495

35,200,547 60.587.193 33.076.131 324.672.443 141.912.613

41758% (65.42oxl (88.42?4) (8.44%! (30 78%)


28


STATEMENT OF CHANGES I N NET ASSETS FOR THE YEAR ENDED J U N E 30, 2005 (continued)

Templeton Templeton Templeton 'ewnpleton Templeton Tem pleton Templeton U.S. Value Glowth Japan Kcren Latin Tliuilurid LJ.S Dollar

[Euio] Fund Furitl America Fund Liquid Resews Fund Fund F.:r,d Furid

(EIJR) (USD) (11SDi (US3j ;USD) (USD1 IIJSDI 3.513.589.594 66.072.43 3 bb,+c)8.096 68.%5.500 71,394,097 172.842.051 2.883,609

0 0 0 0 0 0 0 3.513.589.594 66,052,433 66.408.096 68.465..500 71.494.097 152.842.051 2.883.609

-

102.693.113 71 1.094 I .875.670 6,960.31'5 3.005.126 0 66.049 4.376.717 0 0 0 0 2,538,177 1.946 8.T04.855 48.475 51.395 L46,(,5+ 109.699 224 1.163

192.332 0 0 1.156 0 3.197 0 ~~ ~~ ~~

115.967,017 739.569 1.927.065 7.208.1 15 3,114,825 2.541,598 69.158

46.143.769 529.815 1,172.352 2.444.327 1,295.059 432.866 54,376 12,590.362 186,804 220.907 448.846 265.727 347,337 18.335

2.212,606 26.294 39.522 93.672 40.724 11.820 2.799 1,361.5 15 1 6.2 60 62.004 195.752 53,703 10.182 414 1.262.006 I7.OT3 20.966 33.865 22.91 1 40.996 1.098

43.799 'j>507 5.396 4.6 I 2 576 0 25 20.084.015 249.496 364,126 778.895 402,985 82.319 23.593

0 (3 0 0 347.306 8.842 1.289 183.1 18

0 205,011 .5,72T 63 1 184.5 17 3.746

0 u 0 0 0 7 148 777 0 0 0 0 0 0 0

998.048 14.408 17.493 28.948 19,115 32.955 1,477

85,043.726 1.064.500 1.904.055 4.212.035 2.101,431 1.353.15 1 112.367 (6.190) (1 0 0 0 0 0

85.037.536 1.064:500 1.904.04.5 4.2 l2.['35 1.355.151 112.767 2.101.431

30.929.481 (304.931) 23.0117 2.996,080 1.013.394 1,186,447 (33.209) 99,148.010 1,015.310 13.243.829 9. I3 I ,986 3.329.102 0 266.1 36

0 0 0 0 0 0 0 (733.974) 89.373 (29.846) (301,505) (50,538) 0 0

129.34.3.517 799.755 13.246.993 11 326,561 4,291,958 1,186.447 222.927

457.293.794 (3.702.238) 10.305.469 40.611.415 (2.584.182) 51,299 39.646 154.560 59.937 889 24.08 3 (2.9111 0 0

il o 0 0 0 0 0 0 0 0 (1 0 0 0

586,791.871 (2,842,546) 23.553,351 52.462.059 1.704.865 1.237.746 262,573

2,886,765,949 5 1,614.089 73,348.758 35 3.3 5('. 653 76.088.826 12 1,2YY ,949 6.72 1 .895 (916.929.879) (62.323.419) (79.+33,302) (238.434.546) (60.4.39.064) (164.968.561) (1384.748)

11,937.275 0 0 724,153 0 (1 7.099) 0 1 .981,773.345 I 10.709.330) \5.983,5+4) 11 5.630.261 15.649.762 (43.684,711) 4.837,1+7

(31 .626,568) 0 0 ~2.187,964! (556.741) (984.479) 0

1.950.146.777 (10,709,330) (5.984.544) 1 13.+52,297 15.093.021 (44,670.190) 4,837.147

0.040.528.242 52.500.557 83.976.903 233.379.856 88.291.983 109.409.607 7.983.329

20.548 67 47% (61 14%) (70.98'61 (67.70%)) lilh (0.49%)

part of these litunclal statements

29


NOTES TO THE FINANCIAL STATEMENTS

AT JUNE 30, 2005

Note 1 - The Company Franklin Templeton Investment Funds (the "Company") is an open-ended in~estnient company oi-ganised as a so( monwnc under the laws of the Gmnd-Duct:y ol Luwmbouig and qualifirs :is a u i c t 2 d'invcstisscmcnt a capird wnuhlc. The Compar.y \+as incorporated in Luxembourz on \ovember 6. 1Y90. lor an ~mdetern1inrd period A t the date of this 1-epon. i t offers shares in J6 sub-funds ol the Company [the "Funds..). The Hoard of Directors ol the Company may authorise the creation of additmnal Funds in the future w t h different invesiment objectives

The Compzny aims to p m i d e investors with a choice ol funds inbesting in a \\%It- range of ti-ansferahle securities on a worldwide basis and featuiing a diverse array of investment obicctires. including capital growth and income. The overall objective ol the Company is to seek to minimisc investment exposure through diwrsification and to provide Shareholders ni th the benefit of a portfolio managed hy Franklin Ternpieton Imestmenis. according to its successful Lime-tested in\ estment selection methods.

The followin: changes hecame effective on August 31. 2004.

> > > >

>

> > >

>

>

>

>

>

>

>

>

>

>

>

>

>

>

>

> >

FI-anklin Aggressive Growth Fund launched Class I(acclUSD.

Franklin Hiotechnology Discthery Fund laucched C!ass I(acc!l:SD.

Franklin European Gro\vth Fund launched Class 1iacc)EUK.

Franklin European Small-\lid Cap Growth Fund launched Class I(acc)EUR

Franklin High Yield (Euro! Fund launched Class I(acc)EUR.

Franklin income Fund hunched Class I(acc)L51?. Fi-ankh 1 5 Equity Fund launched C!ass I(acc)El:R.

Franklic 1!.S Short-Term Bond Fund iaunchrd Class I(acc)USD.

Frankiin I, 5. Total Return Fund launched Class Iiacc!l;SD

Franklin \lutual Beacon Fund launched Class 1iacc)USD

Frmklin Mitual European Fund hunched Class I(acc)EUK

Templeton Asian Growth Fund launched Class I(acc)ELR.

Templeton China Fund launched Class Iiacc!CSD.

Templeton Eastern Europe Fund launched Class I(acc)ELR.

Templeton Emerging Markets Fund launched Class I(acc)USD.

Tc:mpleton Emerging Markets Bond Fund launched Class I(acc)l;';L).

Templeton Euroland Fund launched Class I(acc)ELK.

.I rmpleton Euroland Bond Fund launched Class I(acc)EUK.

Templeton European Fund launched Class 1iacc)EUR.

Templeton European Total Return Fund launched Class I(acc!EUR.

Templeton Glohal (Euro) Fund launched Class I(acc)EUR:.

Templeton Global Bond Fund Izunched Class I(acc)EUR.

Templeton Global Bond (Euro) Fund launched Class 1iacc)El:K.

Templeton Global 5mallt.r Companies Fund launched Class I(accX!SD.

Temp!eton Glohal Total Return Fund launched Class l(acc)U5D.

The lollowing change hecame ellecthe on December 13> 2004.

> The lollouing share class was launched elfectivc on December 13, 2004:

> The follow-ing share Class was launched efftclke on December 20. 2004:

> in 1)eccmht.r 200.t. a new full and simplified prospectus came into eflect and [he changes to Ihe Articles of the Company hcame ellective so a5 to compl) ~ I t h Ihe Luxembourg iaw dated 1)ccember 20, 2002, relating to unclertakings lor coI t i w investment (on the so called praduct side) and to enable the iaunch in luture of ne\v funds which could benefit from the new investment opportu ies ollered by this 1~

The following chmge became dlective on Februaiy 4. 2005:

>

The lollowing share class was launched ellective on Fehruary 28. 20@5,

> The following changes became cffeclive on May 27. 2005:

>

>

For a lull list of Funds and share classes olfered as at June 30, 2005 please 1-efer to note Y

C h s BX 5hares were renamed as Class S Shares.

Templeton Global Balanced Fund launched Chss A(acc)ELR.

Franklin Mutual Beacon h ind launched Class Aidis)l!SD

Templetcn Global Bond Fund Class S(acclE1,K merged into Class N(acc)EI!R ol Templeton Llobal Bond (Euro) Fund

'I cmplcton Growth (Euro) Fund launched Class I(dis)LSD.

Fi-ankh U.S. Equity Fund lzur.ched Chss A(acc)EUK Hedged

The follo\ving lunds Here launched: Templeton Global Equity Income Fund and Tcmpleion Globa! Income Fund. They are n d )'et available for distiihutiun in all jurisdictions \vhere the Company distrihuvs its shares

30



AT JUNE 30, 2005 (cont inued)

Note I - Significant accounting policies General The financial statements are prepared it: accordance w i ~ h the regulations 01 the Lrand-Duchy of 1.uxembourg relating 10 investment funds

Investment in securities SecuriLies \\hich are listed on a stock exchange or traded on any other organised market a ir valued at the last awlable price on such exchange or market which is normally the pnncipal market h i - each security. and those securities dealt in o n zn over-the-counter market are valued in a manner as near as possible to that foi- quoted sccuriticrs.

Securities not listed on any stock exchange nor traded o n an) cirganisrd market are ~altied at the last aiailable price, 01- if such piicc is not representative of their lair value. they are valued pi-tident:y and in good faith on the hasis of thrir reastinahly f(ireserah1e d e s prices. The Company does r.ot own an!- restricted seciiiities. all holdings !being quotrd o n an official market. except where (ithenvise distingtnshed in each Fund's "Schrdule of Investmenu" in the lull version of the linancial sratements.

During Lhe acctiufiting !ear under review. gains and losses on investmrnt securities sold were computed on the average cost basis for all Funds \vith the exception ol the Franklir. High Yield Fund. the Franklin Income Fund and the Franklip. U 5 Lovemment Fund which were computed on the first-in, first-out basis.

Duiing the accounting year under re\iew. discounts and premiums wci-e amortised to income over the prnod to malurity. or date sold. if earlier

For mortgage-backed and other similar holdings with scheduled debt paydoni:~. the Fund i-ecords estimates. based on its historical experience. fur anticipatrd pa!;do\\ns Such estimates are rtwirdcd as a rcdut:tion (ir increase to the related holdings as disclosed on the Schedule of In\wtments and are included in the related unrealised apprcclatio~deprcciaLion on investments shown on the Statement of Changes :n Nets Assets.

Foreign exchange transactions Transactions expressed in currencies other than each Funds currency are translated into each Funds currency at the exchange i-ates applicable o n the transaction dates.

.4ssets and liabilities designated in currencies other than esch Fund's currency are translated into each Fund.5 currency at the appropnate exchange rates ruling at the year-end Gains and losses on foreign vxchangc transxLiorLs are recognised in the "Sratement of Changes in Set Assets.' in determhing the resulu lor the accounting year.

Forward exchange contracts Funvard exchange cuntracts are valued at the forward rate appiicahle at the "Srateinrnt o l Set Assets" date lor the remaining period. until maturity. Lams or losses resulting from forward exchiange contracts are recognised in the .5utement of Changes in Se t Assets"

Income I)i\ideiids are credited to income on their ex-dividend date Interest income is accrued on a daily basis

Formation expenses Fonnaiion expenses assoclated with the launch of the new Funds are expensed as incurred

Futures contracts Thc Company may enter into financial futures contracts to gxn exposure to market changes. A linancial futures contract is an agreement between two parties :o buy or >ell a sfcurit) for a set price o n a futui-r date Kcqiiircd initial margin deposlts of cash or securities arc maintained by a broker in a segregated account. Subsequent payments. knobin as \arfiition margin, are rnacle or received by the Company depending on the flucwtions in the value of the underlying securities Such vaijation mal-gin is accounted for a5 unreahsed gains 01- losses until the contract is closed, at which time the gains or losses are rrclassifiecl to realisecl gains o r losses Realised and unrea!ised gains and lvsses are included in the "Statement ol Changes in Net Assets'

Option cnntracts Options are ciintfiicLs entitling the holder to pui-chase or sell a specified twmber of shares or units of a particular secuiity at a specified pnce at any time untii the contract-stated expiration claLr. Options purchasrd arc recordrtl as investments: options written (sold) are recorded as liahilities. When the exet-cise ol an option results in a cash settlrrncnt. Lhe difference heLnern the premium (original option value) and the settlement proceeds is accounted lor as :I rralised gain or loss. When securities are acquired or de!ivered upon exercise of an option. the acquisition cost or sale proceeds are acllustrd hy the amount of the premium M'hen atl option is closed, the difference between the pi-emium and the cost to close the position is accounted for as a realised gain o r loss When an optior. erpircs. the premium is accounted for a realised gain or loss for options written 01- a5 a I-ealised loss lor options purchased. The risle include price movements in the undr.rl!.;ng seciii-iiirs. the possibility there may he an illiquid options markct. or the inability of the counterparties to fulfil their ob1igat:ons tir.der Lhe cor.tr:ict

Synthetic Equity Swaps S)nthetic Equity Swaps are customised vehicles that allon investors to obkiin Lhe rcunumic reLurns ol investing without actually holding the underlying equity There are \mi lus v,\.:iys to packagc: over-the-counter (OIC! equity exposure e,g. wan-ants. notes, options combinations and equity swaps.

An equity swap is a customised, negotiated cmtfiict het\veen the investoi- and a swap dealer that provides the economic exposure to an underlying equity or equity-relaird security. basket ol securities or index.

Under a suap agreemrnt. two panies agt-ee to exchange price or total return perlormatice attrihuPahle to a single stock. For example. in a typical long side swap transaction. the in~estor receives the positive prrk~rmance plus rrplic-aird dividcnds (in thr reference equity and pays. any nrgative perlormance plus a LIBOR-hased rate of interest,

31



AT JUNE 30, 2005 (cont inued)

Note 3 - Investment management fees The 1nvcstmer.t llanagers. as noted on pxge 4, recelve from Lhe Cumpan! :I inomhly fee equivalent to a certair: percentage per annum (as detailed below) of each Funds avei-age daily net a5set5 during the year. The lollo\ving percentages apply in respect o l the dilferenL F ~ i ~ d s as a June 30. 2005.

Franklin Agressive Growth Fund Franklin Riotcchnology I'liscovcr) Fund Franklin European Growth Fund Franklin European Small-Mid Cap Growth Fund Franklin LluSal Growth Fund Franklin Global Small-\lid Cap Growth Fund Franklin High Yield Fund FI-anklin High Yield [Euro) Fund Franklin Income Fund Franklin Technolorn Fund Franklin I: 5. EquiLy Fund Franklin U.S. Gowi-ninent Fund

Fi-anklin LS Small-hlid Cap G m w h Fund Franklin L S . Total Return Fund Franklin Mutual Beacon Fund Frankiin Mutual European Fund Franklin Templetor Cilohal Growth and Value Fund Frankiin Templeton Japan Fund Templeton Asian Growth Fund Templemn C.hinn Fund ~Iempleton Easlei-n Europe Fund Templeton Emerging Warkets Fund Templeton Emerging Markets Bond Fund Teinplc~cin Euni Liquid Reserve Fund Templeton Euroland Fund iempletcin Eurtiland Bond Fund Teinp!eton European Fund Templeton European Tordl RcLurn Fund Templeton Glohai Fund l-emplrton Glohai (Euro) Fund TempleLon Globai Balanced Fund Templeton Glohai Bond Fund Templeton Glnhai Bond (Eurril Fund Tmipleton Global Equity Income Fund Teinpleton C;lo!,al Income Fund Templeton Global Smaller Companies Fund Trmpleton Global T(ii>il Return Fund Templeton Growth (Euro) Fund Templeton Japan Fund Tempkton Korea Fund l~cmplrton Latin America Fund Ternpleton Thailand Fund Tcmpleton I! S . Dollar Liquid Reserve Fund* Templeton L: 5 . \;slue Fund

All ( :lasses except Class I 1.00% 1 .OO'L 1 0L% 1 ,00'% 1 .L>0% 1 00?0 0,80'% 0 808 0 85% 1 .00% 100% 0 6 5 8 1 .00% 0.6511, 1 .W%> 0.75% I .00% 1 .00% 1.008 1 .00% 1.35% 1.60% 1 .bo%> 1.60% 1 .00B 0.40% 1 .OO% 0.65% 1 .OO% 0.75% 1 .OO% 1.00% 0.80% 0.75% 0.75% 1 .OO% 0.85% 1.009(, 0.75% 1.008 100% 1.608 1.30'% 1.60% D,40'% 1.00%

'Tor the year mded June 30. 2ODS. Franklin Advisers Inc. has agreed to n a h e USD 41.076 ol the annual Investment management fee

Note 4 - Forward foreign exchange contracts As at J u n e 30. 2005. the Company had ectered into the folloving outsta~ding contracts:

(a) Frar,kiin High Yield G5u1-o) Fund k m h c r of Purdiascs <oiiIrxcis

2 USD 1,3170.000 1 EL1R 13.359.109

(bl Franklir. L' C Equity Fund

contrxts Kuni1)cr oI PurchLws

1 FER 94.542 1 L!SD 2.000

Sales

E L R 1 .031.631 I:SD 17,000.1700

Class I @,7P% 0.705;, 0.70% 0.708

0.60% 0 60% 0.60%

0.70% 0.40'yo 0 70% 0.40%

0.55% 0 70% 0.706 0 7 0 8

0 909; 1.10% 1 , 1 os 1 1 0 8 0.70%

0.70% 0.47% 0.70% 1?.5iB 0.70% 0.70%

0:55% 0.44% 0.70% 0.60% 0.70% 0.45'% 0.708

0.70?0

$1.971 (680.3@4)

(638,333)

Llnrealised loss USD

USD 119.000 F U R 1,657

(4.337)

32



AT J U N E 30, 2005 (continued)

Note 4 - Forward foreign exchange contracts (continuedl As at June 30. LOfl'i. ihc Company had entered into the Ibllowing outstand.t?g conLracLs:

[c) Franklin Llutual Beacon Fund Nutnher of Purchases hies ctinmcts

22 LSD 70.853.052 ELR ih.55i.4h.3 21 USD 7h.079.084 GlW 41.592.754 14 1'5i) 47,921,671 G \ D 58,892,287 4 LSD 3,675,000 KRW [email protected]! 3 USD 1.74t7.000 C.HF 2,147.602 3 (;nP 8,350.000 USD li.013.16D 2 C S D 18,194.188 DKK 100.300,:51 L I!SD 6,631,823 IiOK 42,449,7117 1 USD 8,641,722 J PY 897.010,694 1 ]PI' 196,643.900 I!5D I .850.000 1 L!SD 27.943.743 ZA R 169.897.95;

L!SD 1,692,971 1 CHF 2.: 47.602 1 I!5D 5.68P.289 CZK 132.850.000

1,847,728 1.778321 (360.336)

87,728 42.481

(1 11,061) 1,707,719

113,704 477.408 (hO.208)

2.506.197 4,548

338,368

8.372.597

(d) Templeton Ernrrging Markets Bond Fund Nurnhcr of Purchases c'Ollll'dCt5

L ROI. 69.360.000.000

Sales

(14.263) EI!R 1,903.182

(c! Templeton European Tow1 Return Fund Kiumhcr of Purchases LontnL ts

7 KOL 653,959,500.000 h E L R 3.481.509 1 PLk 9,436,700 I EUR 4.241.664

Cnrealised profid(los5) EL'R

LC!K 17.770.101 L!SD 4,343.009 EUR 2,210.000 C;RP 2.875.00c)

61.144 (84.47h) 88.200 38.537

10 3,405

(0 Teinpleton Global Bond Fund

contracts liurnber ol Pui-chases

7 ROL 1,331.4Lt.500.@@0

Sales Cnrealised loss LSD

(303.256) ELR 36.283.393

(E) Templeton Global Bond (Euro) Fund Liimher of Purchasrs h l c s

1 3 9 8 b 2 1

EUR 2.410.779 EUR 2.516.589 EI!R 3,167,670 Lt'R 2.633.900 LC:K hhl.766 E I X 446.769 ELR 513.477 EUR 3,043,478

USD A c: 1) iijln PLY IDR 5EK CAD SKK

3.143.202 4.238.595 5.819.204

1(1,783.$47 8.304.5[70.746

4.100.000 822,847

11 5.500.000

i179.589) i112.209) i135,4R1) (16.686) (29.896) 12,225

(41.277) 35.937

I

1

(466.956)

(h! Templeton Global lncnmr Fund Number of PurCheses coiiIracts

J KRW 755.236.250 2 NOK 3.498.063 1 SEK 4,872.127 L THR 17.9lh.75(7 1 PI .N 999 ,510 1 L'SD 299.344

1

Sales

L'SD 555,000 1;SD 5 5 5,000 GSD 670,000 USD 335.000 L'SD 300.000 PLY r)YY,i10

(17.339) (14,273) (37.387) (1 0.423) (2.142) 1.586

($0,078)

33




Note 4 - Forward foreign exchange contracts (continued) ,\s at lune 30. 2005. the Cornpan! had entered into the folloning outstanding contracts:

(ii Ternpieton Glnh.11 Tola; Rrtuim Fund Kiiinbcr of PurLhdzcs Sales LoI1lrails

11 5 5 4 3 3 3 3 2 1 1

KRW PLli IDR >LD NOK CAD T H R R O L 1 5EK ..\LID YZD

7 303 000 000 10 372 245

14,890.000 000 4.485.000

13.350 000 6,300,000

177,890,000 108,056,000 000

4,900 000 475 000 540 000

Note 3 - Synthetic Equity Swaps As at June 3 0 . 20015 the company had enterrd into the lollowing outstanding contracts

(a) Franklin Mutual Eurtipean Fund hurnber of conti-acts

26.900 10,494 :3 5.68O 53.660 9,7110 39.161

226.600 1 1.900 21,600 8.300

Issucr k Stnkr Pricc

Allied Doinecq PLC, x s . , 6.860 GBP Allied L)umt.rrl PLC, ses.. 6 360 GBF Allied Doniecq FLC. scs.. 6.441) GBP Allird Dotriecq PI.(:. scs , 6.73205.5 GRP Allied Domecq PLC. scs., 6.780 GRP Allird Llomecq PIL. ses., 6.93396 GBP Allied Domecq PLC. ses.. 6 76 LRP London Stock h h i n g e P1.C. ses.. 5.3123 GBP I.ondnn 'i:ock Exchange PLC, ses . 5 3447 GRP London Stock I:xchange P1.C. ses . i 4025 GBP

7.1 27,523 3.232.833 1.553.797 2,6Y 5.841 2.126.004 5.140.379 4,521.776 j,s00.000

721,862 326.94.3 407.484

LBP GUP GRP GRP LBP GUP GBF GRP GBF GBP

(64,1641 (1.3T.277i (68.107) (14,145) (74.233)

9,662 (257,739)

79,399 (92.058) 31.191

(38.035)

(629.5176)

llnrtldiwtl pi-olid~los~) ELR

- (3,381) 6.059

16.T51 1.497 (556)

(1 0.6681 i5.8i4) (6.992)

(13,701) (h.t790j

(23.953

Note 6 - Taxaiion Under currenl laws and ptactlce. the Company is not liable in the Grand-Duchy of Luxembourg to any ~ x c s on income or on realised or unrealised capiral gdins. nor are divtdends paid by the Company lldle to any withholding tax.

Honwer, the Company is liable in the Grand-Duchy ol Luuernboui-:: to a subscription rax olO.1)5% per annum. such tax being accrued monthly and paid quarterI>-. and calculated on the net asset value of each Fund at the end of each 1-eievant quarter.

The C:ompan) hrnCh5 lront a reduced rate of 0 d19, per annum lor the Templeton Euro Liquid Reserve Fund and the Templeton U.S. Dollar Liquid Reserve Furid. FoI all Funds offering class l(dis) and liacc) shares. these classes henrht lrom the reduced subscriptton tax of 0.01% per annuin.

Ipcome received or capiral gains realised by the Company may he sublect to non-recovcrablr wthholding Lax in the countries of origin.

All niaterial liabilities in respect nl taxes payable on unrralistrd caplta! g a l s on investments arc provided lor as soon PS there is a reasonable certainty !hat a Itabiht); mill crystallw.

The Company shall apply to the United Kingdom tdX authorities for certification as a "distributlng l u n d within the meaning of Schedule 27 ol the L K Income and Corporatlon Taxes /\ct 1988 in respect ol the distribution share classes ofrered b! the Company and for the accounting period ending June 30. 20t75.

Note 7 - Statement of changes in the investment portfolio ,I list. specilying lor ezch Fund total pui-chases and sales transacted during the year under re\iew, may be obtained. upon request. at thr registrrrd o l k e ol the Company.

Note 8 - Equalisation The Funds use an accounttng practice known :is equalisation by which a portion ol the proceeds lrom sales and costs of redrmption of shares. equivalent (in a per share basis to the ainnunt of undistributed net investment income on the date of the transaction. is credited or charged to unilistnbuted income. As a r e d t . undistributed net investment incoine prr share is unaffected by sales or redemptions of shaws. However. the Board (if Directors resewes the right not to apply equalisation in respect n l accumulation shares available for the lollowing Funds'

Frziiklin Ap.psstve Lrowth Fund Fi-anklin Biotechnology Discove~); Fund h n k l i n European Lronth Fund Franklin European Small-\lid Cap Lrrnvth Fund Franklin Global Gron th Fucd Frankk Glob~l Small-Mid Cap Lrowtl: Fund Fi-znkiin Tectnology Fund Franklln U.5. Equity Fund Franklin I!.% Growth Fund Franklin U 5. Small-Mid Cap Growth Fund

Franklin Mutual Europcan Fund Franklm Templeton Global Growh and Value Fund Franklin Tc:npleton Japan Fund Templetoil China Fund Templeton Eastern Europe Fund .Teinplcton Euroland Fund Tcmpleton Japan Fund Templeton Korea Fund Templeton Thailand Fund Templeton I; 5. Value Fund

34



AT JUNE 3 0 , 2005 (continued)

Note 9 - Classes of shares: A(acc), A(dis), AX(acc). B(acc). B(dis), C(acc), C(dis), I(acc). I(dis), S(acc), N(dis), alternative currency class and alternative currency hedged cla55 of shares Class .\(accl Shares, So distrihutiiin of dividends nil1 be made in respect (!I Class .4(acc) shares biit the iict income attributable will be reflected in the increased value of the shares. All other terms and conditions are the same as those nhich apply for C!as A(dis) shai-es.

Class A(&) Shares: are offered at the apphcab!r net assei d u e . plus an initial sales charge ol up to 6.50% of the total amount invested. In addition, a maintenaiice charge ol up to 0 50% per annum ol the app:icable average net asset value is dcducted and paid to the Pr:ncipal Distributor. This charge is accrued daily and is deducted and paid monthly to the t'ritxipal Distiibutor. A coiitingect delerred sales charge of I% applies to certain redemptions on qualified investrnmLs of U 1 3 I inillion 01- inore within 18 months after rcpui-chase.

Class ,eYiacc) Shares: ai-e o h e d at the applicable net asset value. plus an initial sales charge ol LIP to 6.50% of the iota1 amount invested. I n addition. a maintenance charge of up to 0.50% per annum of the applicahie average net asset value is deducted and paid to the Pnncipal Distributor. This c h q e is accrued daily and is deducted and paid monthly to the Principa! Distrihuioi- \ o distfhutioii of diiidends will be made :n respect of Class AN(acc) shares hut the net income attriburable will he reflected in the increased value ul the shares (1 contingent deferred sales charge of 1%) applies IO ceitain redemption5 un qualified investments of L!SD 1 million o r more nithin 18 months alter repurckase.

Class B(accl Shares: S o distribution ol dividends \rill he made in 1-rspcct 0 1 Class Biacc) shares hut the n e i income attributable will be reflected in the increased \ d u e oI the shares. All other terms and conditions arc the same as tho= wkch apply lor Class B(dis) shares.

Ciass H(dis) Shares: are not suhject to an initial sales charge but arc subjeci to a contingent deferred sales charge if an investor redeems shares nithin four years of purchase. In addition. a rnainter,;incc charge of up to 0.75% per annum u l the applicahle average net asset v a h and a servicing charge of up to 1.008 per annum of ihe applicable ai'erage net asset value are applied These charges are accrued daily and are deducted acd paid monthly to the Pnncipal Distcbutor and/iir other panics. Shares purchased lrom Fehruar)- I , 2003 forward shall be automatically convened into Class ,A shares of the saint fund eight years alter their purchase as mol-e fully disclosed ic the Prospeclus. 5hai-es purchased by January 31. 2004 \vi11 IK automatically converted into ihe same ftlnds Class A shares on Januar) 3 I ~ 2012.

Class C(acc) Shares: No distribution ol dividends \rill lx made but the net income attrihuiablc \\-ill be i-eflected in the increased ~ a l u e ol the shares. All other terms and conditions are the same as the ihose ivhich apply lor Class Cidisl Shares.

Class Cidis) Shares: are not sublect to an initra: sales charge but ai-e sul~jecr to a contingent deferred sales charge 0 1 1.00% if an investor redeems shares wilhin one yeai- of purchase. In addition. a niaintcnaiice and service charge of up to I 10% per annum ol the applicable average net asset value is deducted. This charge is acciucd daily and is deducted and paid mocthly to the Principal Ilistributoi- and/or other party.

Class I(accl Shares: k o distnhution of dividends will be made but the net incume :tttrihutahlr mill he rellected in the increased value of ihe shares. A11 iither teims and conditions are the same as those which appl) for Ckss I(dis) shares

Class l(dis) Shares: are offered to instituiional investors as more lully descrihcd in the cui-i-eiit Prospectus and addendum of the Company. Purchases ol Class I(dis) shares are not subject to an initial sales charge. iior a ctmtingeni deferred sales charge or any maintenance. distnhution or servicing charges. Class Udisl shares benefit from a irduced iniestment management fee (note 31 Class Siiacc) Shares: So distribution of dividends \till he made but the iict income attrihumhle w i l l Ix reflected in the increased value ol the shares. ,111 other terms and conditions are the same as these which apply lor Class 3i(dis) shai-es.

Class Nidis) Shares: are subject to an initial sales charge of up to 3% of the total ainount invested In addition, a distribution charge of up to 1.258 per annum of the applicable :lverage nei asset value is accrued daily and is deducted and paid monthly to the l'rincipal Disrnbutor. Class ?I(dis) shares ma); be offered in cerrain limited circumstances as more lully described in the current pruspecius and addendum of the Company.

.\ltCmBIIYC Dar .\lwniamr Cnnrrrnty

Franklin Tcmplclon Investment Funds c u m m currmry nrdRrd . I ( . ~ ~ ) .\(dls! .\uaLL1 n w ) ~ ( d , ~ ) ctpcL) cidls) i(act) i ( d d r * h d !qdir)

rrmklm .42r?ssi\e (;rowit, rllnrl 1-iv \ \

Franklin Bioiechnolop D~sim-cn rnnd 1-52 \

\ \

\ \

..... ' - Franklin E u r ~ q ~ m r i Grrwth rund r1-R ., rrankltn Eurq)L'An Srn;ll-Mtd Cap Lrowth Fund FYR -

FmriL!m Global Growh Fund

-. - . . . . ... - . . . . . . . ' ._ .

\ __ 1- iD

\ -. i 5U Franklin (;ld)d %n,J-hfid Cap Growth t u n d

Frdnklin High Yicld Fund L5L1 \ ' Lsn

, \

\ \

. \ - - .. \ \ \'

-.-. t L K Frariklin High Yi~ld h r o ' Fund rranklin Income Fund 1:D

-_ ~. \ \

\ .... -. I-ranhlin Tcr hnhlogy rnnd 1-5v

Franklin 1: 5 L p ~ y rilnd .. - EKR

\ \ .... \' - - . ._ Lj:) -

Et-R



AT JUNE 30, 2005 (continued)

~lemp!elon I'haiiand T:md LhL! \ I

Trrnplrirv ::.5 Dtdlar Liquld Rcscr\-c Tun:{ I-tn?pletcn L- 5 V h < T t d rSt) \ \ \

~- I I . ' . . \- .. . ..

1:iu ..

-- Alternative currency 15 only ollered for cenain classrs of shares. For more derails, please refer to the current full or simplifid ptuspectus of tb.e

Company

36


NOTES TO THE F I N A N C I A L STATEMENTS


Note 10 - Soh commission ConsistmL with obtaining hest execution. brokerage commissions on porilolio transaciions lor Lhe Company may he directed hy the In\,estment Managers to broker-dealers in rrcogniiion or rrsrarch senices furnished by them as well a5 lor senices rendered in the execution or cirders hy such broker-dealers.

The receipt ol investment research and inlorination and related senices perrniLs the In\wLment Xlanagrrs 10 supplement their own research and ana1y515 and mzkes avai lde io them the views ar.d information of individuals and research s~alls ol oiher l i r m

Such senices dc no1 include ~ravt.1, accommodation. entei-tainiiiei:t, genera: administrati\ e goods or serwes. general ollicr equipment or premises. membership fees. employee salanes or direct inone) payment. which are paid hy the Investment Clanagers.

The Company's soft commissions are 5Ub]ect to the lollowing cundiLiuns:

(i) the Itnestrneni Managers nil1 act at all rimes in the best interests of the Company when enifring into soli commission arrangements:

(iil the services prmided will he in dii-ect I-elationship to the activit:es of die 1nvestmer.t Manager undertaken in relation to the Company;

(iii) brokerage commissions in pOKfOh0 triinsiictions lor the Cornpar-y will he clirrctrd by the Investment Manager to broker-dealers thaL are enuties and not to individuals

(iv) the Investment Managers will provide reporLs to the Board of IDirectoi-s with respect to soft commissions including ihe naLure of ihe services they receive, and

(v) the amount or ihe sort commissions paid \\dill be set out in the licanc:ai staLcmenis nl the Company.

Note 11 - Connected party transactions Certain ofricers ol ihe Company are also officers and directors or one or more ol the various Investment hlanagers of the Funds and Lhe Registrar and lransfer. Corporate. Domicilkiry and Administrailve .Agent as listed on page 4. and ihe Cummission Payer. Lightning Finance I-imited All transactions \\%ti connected parties were rntcred into in the ordinary course ol husiness and under noimal commercial teinis

The imestment management fees that are paid by the Campar.? ~o the In\~estment llanagers are detailed in note 3 to the linancial sbatemenis

There are no connected brokers in Franklin Templeton Investments. and no transactior~ were entered into wiLh connected hrokers during the year ended June 30. 200'i.

The Company paid the following fees io Ffiinklin .l.emplcton International Sen ices S.A. as the Registrar and Transfer. Coiporate. Domiciliary and Administraiive ..\gent for the year ended June 30. 2005:

> > Senicing charge

Administraiion and Transfer Agency Fees USD 62JlO>l46 USD 281.395

The Company paid the follov,ing lees to Templeion Global .4dvisors 1.itnited as ihe Principal Distrihuior of the Funds for the year ended June 30, 2004'

> S?ainier.;incr and L)istribution charge LSLI 118.323.493

The Company paid the lollowing fees to Lighining Finance I-imiccd as the Commission P q e r to the Funds lor the year ended June 30. 2005:

ljS13 10.490,221 > Servicing charge

Note 12 - Expenses reimbursement For the year ended June 30. 2005. Templeton Global ,4dvisors Limited has agreed to pro\.ide reimbursement of ihe lollowing expenses,

Fund Currency Amount Fund* Class Currency Franklin L S Short-Term Bond Fund L5ll 88.807 Fracklin Aggressive Growth Fund I(accj LSD FraRklin L S.Tora1 Return Fund CSD 5 1.22') Fi-anklm European Small-Mid Cap Growth Fund I(acc) ELR Templeion European Total Return Fund E1!K 632.71 1 Franklin High Yield Fund I(disj USD Templeton Global Bond (Euro! Fund EUR 22.318 Franklin Income Fund I(acc) USD Templeton C;lobal Equity Income Fund UST) 14.841 Franklin 11.5 Equity Fund liaccj VSLI Templeton Gloha: Income Fund IlSI) 6.692 Franklin L.5 ( h w n i n e n t Fund I(dis) L5D

Templeton ilsian Growth Fund Kaccj USD Templeton China Fund I(accj u w Templeton Etnetginp Markets Fund I(accj L5D

Templeton Globa; Toral Return Fund USD 85. I T S Frarklin Mutual Beacor. Fund I(acc) LSD Frank:ic hlutuzl Eui-opean Fund I(acc) ELR

Templeton Eastem Europe Fund I(acc) EUR

.Krmplctoii Furoland Fund Itacc) ELR Templeton European Fund I(acc) ELR Templeton Llobal Fund I(acc) USD

Templeton Global Bond Fund I(accj CSD 'Templeton Lloba! Smaller Companies Fund Iiaccl LSD

Templeion Global (kui-o) Fund FUR

T e m p h n Gimvth (Euro) Fund Kaccj E L K * The reimburwmrnt applies only to the class disclosed

Amount 139 15

9.81 I 37

939 212.159

290 734

31,067 29

39.898 668

1.818 2.220

720 6-l

17,101 2.59

6.lY0

Note 13 - Total expense ratio The Total Expense h i i o ('TER'l). expi-cssed as a percentage. represents how the total annualisrd expenses of the Funds relaw to the average net assets of the Funds lor the year ended June 30. 2005. 'The total expenses conpri5e he iiivrstnient management fees. the adininisrlation and ti-ansler agency fees. the custodlan lees and othei- expenses as summarisetl in the 5tatement of Changes in Yrt Assets

37


NOTES TO THE F I N A N C I A L STATEMENTS

AT J U N E 30, 2005 (cont inued)

Note 14 - Annual and interim dividends distributed for the year ended June 30, 2005 Accumulatwl dividends habe not been paid out and ai-? reflected as an increase in the Issue of shares in the statement of changes 111 net assets

A(dis) USD

A(dis) EUR

B(dis) USD

C(dis) USD

I(dis) S(dis) USD USD

A(dis) USD

Franklin U.S. Total Return Fund JuI-04 0.027 A~ig-O-t 0.027 sep-04 0.026 Oct-04 0.027 NtJV-04 0.027 Dec-04 0 025 Jan-05 0.026 Feb-05 0 024 \lar-k75 0.027 Apr-04 0.026

Jun-05 0.032 May-05 0.029

A(dis) EUR

B(dis) USD

C(dis) lJSU

I(dis) USD

N(dis) USD

Franklin lligh Yield Fund JU 1-04 Aug-04 Sep-04 Oct-04 N(IY-04 Dee-04 Jan-05 Feb-05 Mar-05 Apr-05 May -0.5 Jun-05

0.030 0.039

0.039 0.037 0.037 0.039 0.030 0.042 (3 039 0.039 0 . (738

0.038

0.Q30 0.031 0.030 0.030 17 030 0 028 0.030 0.030 0.034 0.031 0.1331 0 0ZII

0.069 -

0.067 -

0.065 -

0.055 - 0.065 -

L3.06Y -

0 068 - 0.074 - 0.068 -

0.068 - 0.066 -

- -

h314 0 015 0.013 0.014 0.016 0.01 I 0.1713 0.012 0 014 0 013 0.017 0.018

0.01s 0.018 0.017 0.018 0.019 0.015 (3.017 0.019 0 010 0.0 17 0.021 0.022

0 021 0 02 I 0 020 0 02 1 0 021 (3 018 0 020 0 018 0 022 0 020 0 023 0 025

Franklin High Tcmpleton Asian Yield (Euro) Fund Growth Fund DK-04 - 0.411 DEC-LN I3.126 - - - - - - - -

Franklin Income Fund Jul-04 Aug-04 scp-04 (k L-04 Iio\-03 I)cc-O.t Jan-05 Feb-04 Mar-05

Templeton Emerging Markets Fund 1h-04 0.076 - - - - 0 038

0 038 0 038 0 038 0 038 0 038 0 03(7 0 036 0 036

- 0.041 - 0.028 - 0 0 2 8 - 0.t328 - 0.025 - 0.02'j - 0.019 - 0.019 - 0022 - 0.022 - 0.025 - 0.025

Templeton Emerging Markets Bond Fund JuI-04 0.204 0.175 0.146 Ckt-03 0.185 0 146 0.126 Jan-05 0.173 0.127 0.114 - -

- - - -

Apr-05 0 188 0.150 0.127 - -

ilpr-05 0.036 May-05 0.036 Jun-05 0.035

Templeton Euro Liquid Reserve Fund DU-04 -

Franklin U.S. Govcmment Fund Jul-04 !\U:-04 Sep-0+ C)ct -04 h 0\--(?4 I)!?C-LX

Jan-09 Feb-OS hlar-04 Apr-05 h.ia)-OT Jun-05

Templeton Euroland Bond Fund ricc-t?.t - 0.033

0.033 0 032 0.032 0.032 0.032 0.032 0.032 0.032 0.032 0.032 0.032

- 0.024 - 0.02.i - 0,022 - 0022 - 0.022 - 0.022 - 0.022 - 0.022 - 0.026 - 0026 - 0.026 - 0.025

0.045 0.039 0 039 0.039 0.039 0.039 0.041 0.041 0.041 0.041 0.041 0.041

0 028 0 028 0 026 0 02h 0 026 0 026 0 026 0 026 0 026 (3 L726 0 028 0 028

Templeton European Total Rerum Fund JU-04 0 023 4ug-04 0.027 Sep-04 0.024 Ocl-04 0.026 N O V - 0 4 0.025 Dee-04 0.023 Jan45 0.025 k h - 0 5 0.025 blar-05 0.023 Apr-05 0.024 Ma) -04 0.024 Jun-05 0.023

Franklin U.S. Short- T e r n Bond Fund Jul-04 0.0 I h !\Ug-04 17.017 5ep-03 0 018 oct -04 u 022 IiO\.-0S (3.019 DK-0-t 0.016 Jan-05 0.020 Feh-OS 0.021 hlar-04 C3.021 Apld15 0.021 May-05 0.021 Jun-05 0.023

- 0.004 - 0.007 - l).OOR - 0.011 - 0.011 - O.008 - 0.010 - 0.0lU - 0.012 - 0 0 1 1 - 0.1111 - 0.012

0.008 0.009 0.010 0.014 0.012 0.010 0.0 I2 0.01L 0.014 0.014 0.013 0 015

0.010 0.011 0.0 12 0.015 0.01,j 0.012 0.015 0 014 0.016 17.015 0.016 0.016

Templeton Global Fund Dcc-04 0.073

Templeton Global (Euro) Fund Der-04

38



AT JUNE 30, 2005 (conLinued)

Note 14 - Annual and interim dividends disttihuted for the year ended June 30, 2005

Templeton Global Balanced Fund Jul-04 Oct-04 Jan-05 Apr-(75

Templeton Global Bond Fund Jul-04

Sep-04 Oct-04 N OY-o't

Dec-04 J a n 4 5 Feh-05 Mar-05

M a y 4 5 Jun-05

Aug-0$

APT-05

Templeton Glohal Bond (Euro) Fund Dcc-04

A(dis) USD

0.1 17 0.032 0.027 0 044

0.040 0.037 0.023 0.033 0.029 0.032 0.034 0.033 0 031 0.035 0.032 0.029

-

Templeton Glohal Smaller Companies Fund Dec-04 0.1 Ih

A(dis) EUR

- -

-

-

0 033 0 030 0 018 0 027 0 l'23 0 023 0 O2h 0 026 0 024 0 171h 0 025 0 023

0 320

-

B(dis) USD

-

- -

-

170.25 0 023 0.006 0.0 18 O.@ I5 0.015 0.018 0.0 I6 0.016 0.018 LM16 0 013

-

-

C(dis) l(dis) USD USD

A(dis) USD

Templeton Global Total Return Fund JUI-03 0.042 Aug-O$ 0 033 Sep-(74 0.03h Oct-04 0 0 3 5 NOV-03 0.02R DCC-04 0.035 Jan-05 0.042 Feb-05 0.039 \+ar-OS 0.031 Apr-05 0.033 \la)-05 0 034 Jun-Ci 0.033

Templeton Growth (Euro) Fund Dec-04 -

Templeton Latin America Fund Dec-04 0 41 I

Templeton U.S. Dollar Liquid Reserve Fund Jul-03 0 002 Aug-04 0,004 Sep-03 0.005 Oct-04 0.005 No\-04 0.007 Llec-O3 0.008 Jan-@? 11.008 Feb-05 0011 hl ai--05 0.012 Apr-05 0.014 May-(> 5 0,016 Jun-0'5 o.oin

USD

0 029 0 020 0 022 0.02 3 0 0 1 5 clo20 0.028 0.024

17 17 1 9 0 c720 0.019

0 o i a

-

-

-

-

- -

- -

- - -

0 001 0 008 0 00Y

l(dis) S(dis) USD USD

39



AT JUNE 30, 2005 ( con i inued)

Note 15 - Time Deposits As at June 10. 2D05. the Cornpan)- had (he lollo\\,ing cash on time deposit \kith highly rated rinancizl insLiLutions

1-ime Deposits Currency

Franklin European Growth Fund PUR Franklin Furopean 5rrdl-Micl Cap Lrou-th Fund E L R Franklin Glohal Growth Fund LSD Fi-anklin Global Smail-?did Cap Grmvth Fund LSD Fi-ankh High Yield Fund VSD

EUR Frankiin Income Fund USD Frar.klin U.S. Equity Fund USD Franklin L1.L Goverr.ment Fund CSD Franklin \lutuai European Fund ELK Franklin Ternpieton G!ohal Growth & Value Fund LSD Templeton tisran Lrowth Furid IJSD Templeton China Fund USD

Templetor. Emerging Markcts hind LSD Templeton Fmri-ging MarkrLs Bond Fund LSD

Franklin High Yield (Euro) Fund

Templeton Eastern Europe Fund EIjR

Amount hfi5.000 260.000 325.000 330.000

90.2r30,000 765p00

12.3 15,000

41.270.000 101.682.1 19

1.@30,@00 2$.555,000 75.595.000 52,435.000 87.7 I5.1!00 10.625.000

93,930,000

Templeton Euro Liquid Reeseive Fund Templeton F'uroland Fund Templeton European Fund TempleLon European Total R ~ ~ L I I T I Fund Templeton Global Fund Templeton Glohal (Euro) Fund .Templeton Global Bahnced Fund Templeton Global Bond (Euro) Fund Templeton Llobal Equity lncoiiie Fund Templeton Llobal lncome Fund Templeton Global Sinallcr Companies Fund Templeton Growth (Euro) Fund Templeton Japan Fund Templeton Korea Fund Templeton Latin Ameiica Fund Templeton Thailand Fund

Currency ECR EUR ELR ELK USD EUR USI) EI!R U5D LSD LSD E L K USD usn USD usn

Piote 16 - Audited and unaudited semi-annual reports The ahidged audited annual rrpons will be distrihuLed to all June 30 registered shareholders. The audiied annual report is available. fi-ce of charge. upon requesL lrom the registered office. Elkclive December 31, 2005. the ahridged unaudited semi-annual repons will he available on the following Franklin Templeton web-site, ~w\v.Iranklintempleton.lu, and only distributed to registered shareholders in those countries where local regulation requires. The unaudited srm-annual report is available. free of charge. upon request froin the registered ollice.

Note I7 - Portfolio Turnover Ratio The po11folio iurnover ratio. expressed as a percentage. is equal to the total of purchases arid saies ol securities netted against the absolute value of subsciiptions and I-irdemptions. mer average net asseL5 oI the lunrl lor the yea]-. I t is elfectively a rnrawre of how frequently a fund huys or sells securities.

40

FRANKLIN TEMPLETON INVESTMENT FUNDS - F r a n k l i n Aggressive Growth Fund -

SCHEDULE OF INVESTMENTS AS OF JUNE 30,2005

( C u r r e n c y - USD) Al l securi t ies a r c ordinary unless otherwise s t a t ed

Kumbcr ul shares or Dcscrip~icrn

r.lce Countl). Trading

< orlc currency

% or hlarket net

\ - a h 615St'15

21,600

7,740

13.590 14.570 10.770 11,8117 12.870

6.210

33.220

13.850

3 3.860 14.190 4.5.340 18.260 12.590 12.400 13.010

35.290 32,830 16.970

62.710 66.380 29,200 17.250

4.860 28.590 26.640 11.540

65.230 12,750

23.560

10.330 24.230

55.780 16,640 32,490 14,290 9.990

12,270 12.840

Aerospace 6r Defence ESSKX Corp

Beverages Hansen NdiuraI Corp

Biotechnology Gencntech Inc Arligtn Inc. Celgene Corp. Gcn-Prohc Inc Thcravance Inc.

Capital Markrls Hkackruck Inc.

Chemicals lleadwaters liic

Commercial Banks East \Yea Baiicoip Inc

Commercial Scrvices & Supplies

Corporate Executive Board Co Rollins Iric. Liureate Education Inc. CR% hiternauonal Iric. swricycle h c . L!ltimatc Software Group lnc

Iluvdy's COT.

Communications Equipment Juniper Networks Inc. Awccnl Corp. Tiiinhle Ya\ig,uion Lid

Computers & Peripherals Del' In<, EMC Coqi Kctwvrk Appliance Inc Apple Coniputer Inc

Divrrsilied Financial Services Chizago \Ierr;mule Exchange Calamus Xiset 3lanagcinerir lric . A CapitdSewrce Inc. Investors FIIMII~EI~ Sewices Cnrp

Diversified Telecommunicalion Services Coining Inc Qualromm Inc

Energy Equipment & Services Smlth International Inc

Food & Stiaples Retailing LVIi,ile Foods Market Inc h : e d Natural Foods Inc.

Health Care E uipmcnt & Supplies St Jude Uedir i Inc. Zimmer Holdings Inc. Reslminics I nc C..K Ihird Inc Kinetic Concqjis l r i i Advanced Neuromoilulauon Systems liic Iiniiiucor Inc

494.208

653.733

1,091,005 880,902 439.093 427 877 218.790

0.56

0 74

1 2 3 1 00 0 50 0 48 0 25

3.057.667 3.46

499,594 0.56

1.142.104 1.29

465.222 0 53

1.522.345

908.614 873.924 677,971 623.968 213,364

1.189.833 1.72 1.34 1 03 0 99 k 7 7 0 70 1724

6,010,019 6.79

1388.602 RS8,176 661,321

2,408,099

2.477.672 910.070

634.972 825,484

1 .00 0 97 0 75

2 72

2 817 1 03 0 93 0.72

4,848,108 5.48

1,436,130 778.792 522.913 436,443

1 62 0.88 0.59 0.50

3,174,308 3 59

1,084,123 420.877

1.505.000

1,500,772

1.222.039 735.865

1,957.904

2.432.566 1.267,469 1,173,214

950.428 599,400 486.873 37 1.71 8

7,281,668

1.22 0.48

1 70

1.70

1.38 0 83

2.21

2 75 1.13 1 3 3 1.07 0.68 0 75 0 42

8.23

41

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Aggressive Growth Fund -

SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2005 (continued)

(Currency - USD) A l l securi t ies a re o r d i n a r y unless otherwise s ta ted

Lumber of 90 ( O f

st1;irt.s o: Description Coun:ry Trading Market nt.1 lace valut. code c~irrtmcy value assets

Health Care Providers & Seniccs iieellpuini Inc. Ct.riit.ne Corp i', x t r t i d . I RY Inc. Psyc1iid:nc Solutions Inc 1:nited Surgical kirmrrs Irittmational Inc

1 9.2li) .39,720 25,910 14.650 12,580

24.180 12,660 7.280

1,140 36.880

7.380

8.400 59.750 57.510 9 ,430

5 3 .0Y 17 45.330 60.000 lY.Yl0

16,300

7,4317

9.1 3 0

16.390

53,030 23.060

55.270

44,180 34.34d 49.910 2 1,980 15.940

13.790 12,460 12,000

19.540 18.;00 13,461) 2Y.300 17.100 7,430

1,337.784 1333.798 1.153.513

71.3.602 655,166

1.51 i.51 1.30 0.81 0.71

5,193.863

1.249 139 840.624 429.374

1.41 0.95 1749

Hotels, Restaurants & Leisure Starbucks Cnrp. Station Ca>iricis Int P F [:hangs China Bistro lric

C!SA c: SA 1:SA

2.85 2.519.137

923.403 81T.993 608.573

Household Durables N V K Inc. Ternp;ir Pcdic International lric Harnian International Iridusiries Inc.

1 .04 0 93 0 69

2 66 2 349.97 1

h e r n e t SoRwarc & Services Gnogle Inc , A Yahuv I In(. \:criSip lnc \Vt.hst.risc Inc

USD LXD USD I!SD

2.ST0.863 2,070.337 1.653.988

453.112

2 i Y 2 31 1 87 (1 51 7 - I 3 1 6.648.297

2,502.1 32 1.838.990 1.536 000

647.871

IT Senices LuRnizarit 'fcchnolog) 5olutions Corp.. A .L\lliance Data Systems Corp. hcustar Inc.. A I J i l L c h e X Inc

2 83 2.08 1 7 3 0 73

6.523.993 - . - / . > I

1.34 Machiner). Oshkosh Truck Corp LJSA LSD 1,275,964

0.28 Media XM 5a:elliie Karlio Holdings lnc , A 1!5D 250.094

444.722 Ollice Electronics Rockwell Auiom;itiuri lnc

Oil & Gas N W , ~ & I Explni-ation Co

Pharmaceuticals Tev3 Fharmaceuiical Irirlusirles Ild.. ADR Johnson &z Johnsuri

C!SA I S D 0.50

0 74

1.86 1.7;

USA USD 653.797

1.631.666 I ,563.9C17

ISK L!SA

LSD USD

3.215.566 3 63

1.344.719 Road & Rail Knight Xransportalinn Inc

Semiconductors & Serniconductur Equipment M a n d l Tcchiiulogy Group Ltd. Liricar Technolog)- Coip. Interdl Corp., A FonnFactor lnc. Silicon 1abor;imrit.s Inc

VSD 1 5 2

I .90 1 42 106 0 66 0 47

1.6R0.hO7 1.259.934

936,811 580.712 417.787

4,875,851

489,683 463,263 412.430

S.51

Software l\LSYj Inc. hAVILQ Corp .\uiorlcsk I:K

0.55 0.52 0.47

1.365.386 1.54

SpCCkdlly Kctail Lkban Ouiliitt.rs Inc Low's cos.. Inc. Best Buy Cu., lr ir. Zumicz Inc. Hibbctt 5 orurig Goods lnc. Abercron$ie k Fitch Co , A

US.4 C! SA I:SA C'S.4 USA L L 4

1,107,723 1.088.714

922.683 854.1705 647.063 5113.441

i.25 1.23 1 04 0 97 0 73 0 58

LlSD L!SD L!5D

5 80 9.130.720

42

FRANKLIN TEMPLETON INVESTMENT FUNDS - F r a n k l i n Aggressive Growth F u n d -


(Currency - USD) A l l securi t ies arc ord ina ry unless o the rwise s ta ted

hurnbcr uf on; of shares or Lkscriplion Cuumn Trading Marker tlel

lace \-slue cndc c-urrcnc) value assets

52.660

16.470

1 8.400

3,3Y0.000 1.630.000 7 15,000

Textiles. Apparel & I.uxury Goods Coach Inc

Wireless Telecommunication Services kill Holdings Inc , R

TOTAI. SHARES

TOTAI. TRANSFEKAULE SECURITIES ADMITTED TO AN OFFICIAI. STOCK EXCHANGE LISTING

TRAUSFERARLL S K U K I I I E S DEAL-1- IN

SHARE5 Pharmaceuticals Kocht. I iolding A&, ADR

TOTAI. SHAKES

BON 1)s Securities Maturing Wiihin Onr Y e x I! 5 Treasury Bill. 0.00%. 07/i)7/05 L!,5 Treasury 8111. 0 W k . 08/04/05 L! 5. Treasury UiII, 0 00% 07/14/05

01 AYOTHFR RFGUI .ATEL) MAKKE-1

.lOTAL BONDS

TOTAL TRANSFERAB1.E SFiCLKlTlES DEALT IN ON ANOTHER REGULATED MARKET

TOTAI. INVkSIMENTS

(!SA I:SD 1.767.796

c:5.-2 LSD 1053,092

70,614,464

19,614,464

CHE 1.15Y.200

2.00

I 1 9

89.97

89 97

1.31

1 .l59.200 131

3.388 $44 1,645,499

714 268

3.83 1 .Uh 0.80

5.748.211 6 49

5.748.21 1 6.$9

6.YO7.411 7.UO

86,521.875 97.77

43

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in B iotechnology Discovery Fund -


(Currency - USD) Al l s ecu r i t i e s a r e o rd ina ry unless o therwise s ta led

tiumber or shares OT Description

lace \.slue CUUIit~ I rarllrlg

code currency

5 ol Market net

value il5beLb

113,100 78.61717

1-3-3.400 84.300

11 7.380 76.600

103,375 120.503 102 .DDO 122.100 143.730 80.800 20,ic)O

126.400 87.300

11 5.7317 1.807

64.130 123,566 100,598 49,600 21 ,530 h7.fUO 9 3,70(!

163.300 39.930

103,125 13,700

145.200 1 +.2170 16.100 70.703 17,300 60,600 $9.4017 37,600 20,700 45.300 b3.530 2: ,200 25,700 1 5, 1017 35.400 39.400 2.300 13.0170 1 ; .300 36,400 21,100 8,900

62.000

74.100

31.300 60.303

125.300 53,200 4$,:00

239,400 69.600 t0.1(717 26.900

I S Biotechnology ;\m,v,en lnc . [;SI\ (;enentech Iiic LSA G i l d 5cimces Inc. I-SA Genzymc Corp USA aiogeii Idee Inc USA (Agene Corp L!SA

kL4lILL SECI'RITIFS .4DMITTED TO Ah OFFICIAL 5lOCK ENCHAKGF I.ISTIKG

!dedlmmu:ie Ir ic. Protein Design Labs Inc .Llcrhcl:lcs c.0 Telik liic ('5.4 Alkermes lnc USA !dGl Fhama Inc C j A Invitrogen Curp 15.4 Cubist Phannaceuticals Inc. L!SA Vertex Pharinaceuticals Inc L54 Human Genome 5cirrict.a I:ir [!SA Seruno 5.4. R CHE GilY Riophamiaceuticals LSA Xu\-clu Inc. [;Si\ hiillenriiurn Ptrarrnaceuiicals Inc UCA Dov Pharmaceutical Inc LSA Ncurocnne Biowienct.5 Inc. I!SA KeryE; Riopharmaceuticali Inc v5A Adolor Coip 1!SA K o w n Biosciences Inc. L! 5'4 Rigel Phannaceuticals Inc USA Exclixi; Inc , USA Myi1ietnx Inc I:SA SuperGt'n Inc. C:5A Chi-les River Labur.irvrics Iwcrnarional lnc. 1!SA OS1 Pliarniaceudcals lnc. USA Inhihitex Inc USA ImClune Sp ie rns Inc u 5.4 Medarex Inc. L!SA lsta Pharmaccuuc-als Inc. LSA InlerMune liic. C:V Therapeutics Inc Cdrcrix Inc (!SA Incyie Corp USA Serological5 Cvrp. vj.4 ~rht!ra\ance liic. USA Vicuron Pharrnait'uticnls Inc. USLA Tanox lnc. [;SA Ti-imcris Itic. L SA Fyeiech Pharinaceuticals Inc I:SA klenix Pharmaceuricals lnc. L!SA Alexion Fhamiaceuticals Inc. 1!S'4 Arena Pt~rrrnaceuui'als hie. C!SA Fncysive Phannaceuticak Inc 1!PA On)x Fhamiaceuticals Inc. USA Tiiari Pharmaceulicals Inc. L S A

Health Care Equipment 67 Supplies kektar I herapcuucs

Pharmaceuticals

Ph.mwn Corp liispii-e Pharmaceut ic-als 1111. AitieroC;enics lnc .4xcan Pharrna Iric. ALanir Phannaceuticals. A Fozcn lnc. Cypress Uiosciet~ce Inc. Favrille Inc.

SCpTacoT hlc.

TOTAL SHARE5

TOTAL TRANSFERABLE SECURITIES ADMIT-IED TO AN OFFlCIAl. STOCK EXCHANGE LISTING

[!SA

LSii I:SA (!SA U5.4 CAN ti 5'4 LSA I:SB c: SA

6,838.026 6.31 0.1m 5.868.266 5,065.38i 4.043.741 3.122.982 2.762.183 2.435.303 2.385,783 1,985,345 1.899.714 1.758.209 1,707.345 1,664.683 1,370.132 1,339,806 1,133.574

976.243 955,165 932,543 925.535 904.299 889,680 866.725 862,224 794,808 766.219 738,841 717.288 685.150 658.007 535.906 535.781 504.798 494.208 490.304 $64.094 461.607 454,025 470.500 436.900 42 1.290 41S.888 393,212 371,616 281.840 264.9617 248.248 228.091 212.532 113.360

7.63 7.04 6 54 5.65 4.51 3.48 3 08 2 72 2 66 2 21 2 12 1 96 1 9 0 1.86 1.64 1.49 1.29 1.0Y 1 .0: 1 174 1 03 1.01 0 Y9 0 97 0.96 0.89 0.85 0.82 0 80 0 76 0.73 0 60 0 60 0.56 0.55 0.55 0.52 0 51 0.51 0 50 0 49 0.47 0.46 0.44 0.41 0.31 0 30 0 28 0 25 0.24 0.13

71 262.767

1 .L37,844

2.478.413 1.399.563 1.055,026

850.136 689.128 670.320 570.i20 529,320 114.325

8,356,951

~0,867,562

80,867,562

79.47

1 39

2.76 l.56 1.18 0 95 0 77 0 75 0 63 0 59 0.13

9.32

YO. 18

44

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Biotechnology Discovery Fund -


(Cur rency - USD) A l l securi t ies art. o rd inary unless otherwise s ta ted

Coumr) Trading curlt. currenc!

'x. of \I B t kt.1 IlVL

value assets

TRAMFERABLL SLCC.KII 1Lj L)EALI- IN 01 ANOTHER RFGl!lATFD M R K F T BONDS Securities Maturing Within One Year LLS. 'Irtasur) Bill . 0 00% 08/04/05 l!.S T r e a s u ~ Rill. 0 00%. O W 1 1/05 CI 5. .Treasury Bill. 0 00% c)T/0;/05

2,765.000 2,695.000 2,645.000

IO I 'A l . BONDS

TOTAL TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKET

TOTAL INVESTMENTS

c: 5 1) USD LSD

2,757 457 2.686.069 2 643,786

8.087.312

8,087.312

8.087.312

3.07 3 00 2 Y i

Y 02

Y 02

9.02

88.954.874 99.20

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in European Growth Fund -


(Cur rency - E U R ) A l l securi t ies a r e o rd ina ry un le s s o the rwise s t a t e d

Number uC shares or Descnption

face value Countr) Trading

code currenc)

TRANSFERABLE SkCLKI 11E5 ADhllTTFn TO A S OFFIC:IAL STO(:K E X C t t l h G E LISTIhG SHARES Capital Markets Credit 5uisse Gruup CHE c:tr5 AG CHF Man (;Toup PLC GBR

CH€, C H F GBP

CHF

LLK EUR LBP LLH

EI!R

EIJR

N 0 K

FUR E U R

CI 11, GBF CHF EC!R 5EK

GBP

FUR EUR GUP

GBF GHF

FUR LBP

CHF

ELK

EUR

EUR

3Y1,115 3R6.855 321 353

3 25 3 21 2.67

12.000 6,000

15,0170

6 000

12.000 -tO.U00 30.000

3.0017

35,000

117.000

50.000

50.000 3.000

5,000 55.000 2,500 5.0DU

20,0170

18,000

37.000 $0.000 30.17170

22.000 80.000

18.000 40,000

2.000

20.000

1.500

L.00I7

1.099.315 9 13

Chemicals 5yngcnta A(;

Commercial Banh Erste Bank der 0cs:cr Sparkd;5en AG .Angler Irish Rank Corp.. F1.C HR05 P1.C KBC Baiicassurance Hultling NL

CHE 510.261 4.24

496.4411 410.00i) 382,200 195.900

4 i2 3.40 3.17 1.63

1 .tR4.540 12.32

428.753 3 56 Communications Equipmenl SES Glohal. kL)K

Diversified Financial Services IkG Gruep N V

Diversified Telecommunication Services Telenor .4SA

I .I.:x

233.700 1.94

h O R 330.390 2.74

557.000 170.100

4.63 1.41

727. lcld 6.04

Health Care Equipment & Supplies Synthes Inc. Smith &I hephew PLC Nohel Biocare Holding AG ~%,ilor Irwrnaiirmal S A Getinge AB. B

453,587 448,677 419.092 2R2.50~7 225 254

3 77 3 72 3.48 2.35 1 .R7

CHE GRR CI IL: FIU SWE

1.829.1 10 15.19

Household Producis Rrckirr Rmckiser FLC

Media

Anioldo hloncladm kditurc 5pA WPP Group PLC

l\.ledidSFl SpA

GRR 438.387 3.64

ITA ITA GBR

360,380 315,000 25 5,170

2.99 2.62 2.12

930,550 7.73

491.508 377,537

Multi-Line Rerail Ncxl F1.C Tesru PI .c

GRR LBR

4 08 3.1 3

869.045 7.21

383.580 271 .R27

3.18 2.26

Oil & Gas Eni SpA R G ( h u p FLC:

I1A LBR

655.407 5 -14

Pharmaceulicals Kucht' Holding A(;

Semiconductors & Semiconductur Equipment A S M Iii:cniational S\'

Software SAP AG

Texiiles, Apparel & Luxur). Goods Fuma AG

CHF 209.179 1.74

N LD 2 21

1 80 216.450

4'0Y.400 3.40 DEL

46

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in European Growth Fund -


[Currency - E U R ) A l l s ecu r i t i e s a rc ord inary unless o t h e r w i s e s ia ied

Wireless Lclecomrnunication Services 30,000 Losmote \4obile Communic.ii~un 5A 5~7.000 .l-el<fonica Modes 511

GRC LLK 45 3.000 ESP FL K 436,500

889.500

3 76 3.62

7.38

TOTAL SHAKES 11.527,@64 95.71

TOTAL TRANSFERABLE SECURI rIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 11,527,064 95 71

TOTAL INVESIMENTS 11.527.064 95 71

47

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in European Smal l -Mid Cap Growth Fund -

SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2005

(Cur rency - E U R ) A l l securi t ies are ord inary unless otherwise s t a t ed

Nurr1ht.r uf % of shares or Dexriptiuri C.otitury Trading Irlarke: net [, 'Kt . \ dl ut' code currency \ illuc asseis

TR.IMFERr\HLL. SL.CC!KI I'IES ADMITTED TO A h OFFICML STOCK EXCt L4NGE LISIING SHARES Aerospace &T Defence Zodiac SA

Auto Camponenis Kokian Renkaat OYJ

Bevera e5 Wulverfiarripton B Dudle) Breweiies PLC

Biotechnology Moiphosys

hi ld ing Products BPR P1.C \lienerberger .4G

2.874

7,410

3.680

2,275

10.140 1 ,806

I ; 1.950 lh.411 2.0.50 5.160 .1.2;5

25.610

7.+70 1.870

114

6.O00 ll,t(17

8.835 3.108

16,340 6.190

135 13.720

3,980 1,540

3.384 3,373

1.880 18.730

1,659 9,018

10,000 2.061

3.160 1.135

5.520

FRq

FIN

GBR

DEL

GBK AU-r

NOR ITA DEI! DEI! GBR FIN

NOR DEL! CHE

LRC r r A

GBK DEI! W k . %\'E CHE SWE

BEL ULL

CHE FILZ

LLK

LCJK

GBP

EUR

GRP ELR

IiOK E L R ELR EC:R GBP EC!K

NOK FCR CHF

EUK EKR

GBF EUK SEK SEK CHF SEK

ELK ELR

CHF E U R

EI!R EUK EIJR ELR LLK EL!R

EKR EC:K

NUK

1273i7 1 49

11 1,423 130

62.874 17.74

0.84 T1,8Y,7

79.417 69,196

0 93 0 81

148.713 1 . i4

85.796 84.273 71,196 66.925 66,013 65.690

101 0.99 0.83 0 78 0 77 L? 77

Capital Markets l IBG Sundal Collie; .\SA

A\\'D Holding AG DT Bcrteiligungs AZG lnterinediatcr Capital Gruup PI..C Capinan CIYJ

Azlrnu: Hrrlding 5p11

439.892 5.15

98.248 85.478 58,765

Chemicals Yara 1ntcrma:ivrial hS.4 K B j A G 5ika A(;

1.15 1 00 0.69

2 84

1 08 0.89

141,491

Commercial Banks Bank of Firacuj Uanco Di Desio E Della Bianza 5p.4

92.400 75.865

168.264 1.97

Commercial Services & Supplies Hoinesei-ye PI C 130.151

108.780 85.709 85.427 76,641 50.492

1 5 3 117 1 .@O 1 .00 0.90 0.59

6 29

1.04 0.52

. . . . . . ,

Societe Generalc de Surwilldncc Holdings SA P u c h i A R - R Shares

537.200

89.152 43.936

Communications Equipment t V S Rrondcdst Equipment SA Option W

133,088 1.56

1 05 0.98

Computers 6r kripherals Logiiech lntemational 5.4 h ~ l t c ~ l t ~ i ~ r n ~ i i ~ i i a l NV

89.893 84,123

174,016 2.03

1.17 1 09 1 06 1.04 101 0.67

Construction & Engineering C;mpo Ferrovial 5A Asraldi Krrn Ram (ii-oep >\' Kingspan Group P1.C Mc1ncrnt.y 1 lvltlings P1.C l l ' l ' -Yht~ma OYJ

ESP IT11

100.204 93 229 90 830 88.601 8h.000 56,936

515 800

N Ul IRI. 1RL FIX

6 04

Construction Malerials Tiian Cement Co. Imcrys

GRC FRA

83.195 64.638

0 97 O.76

147.833 1.73

0.82 Diversified Financial Services ,\ktiv Kapital ASA NOR 69.8179

48

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in European Small-Mid Cap Growth Fund -


(Cur rency - F U R ) A l l secur i t ies a re ord inary unless o ther \v isc s t a l ed

huiiiher of shares ur Description

LlCC value Counrr! f rarlirig

code L-~rrcllc~

Diwrsified Telecommunication Services Tandherg Tele\ Ision A5A Digital hlultiniedia Techiirrligies Sp.4 .laidberg ASA Eirconi Group P1.C

8,607 3,391 8.800

40,000

35.305

1.248 2.025

3.185 287

16,090 S.28O 2.014 1.710

Y ,900 2.820

480 1.529 4.290 2.091 5.800

240

S.490

6.021 7.443 1 .80O

1,720 28.061)

9TO 9.560

22.060

30,380 4.115 2,804

1.400 5,210

2,1780 25.074

1,375 26,602

2,041 2.870 9,500

%OK ITA

N O R IKL

ITA

LI L L! F R4

GRC. LHE

LOR NOR N LD FRA

DNK CHE CHE ITA

DKK S W F SWE CHE

FR4

GBR IIA

G R C

D k K GBR DEI! GKC

NVK E L K NOK ECR

EL!R

ELR L L K

EC!K CHF

NOK YOK FUR FUR

DKK CHF CHF ELR IIKK SEK SEK CHk

ElJR

GRP ELR LLK

DKK GRP EC:R ELR

1 04 1173 0 Y I 0 Rb

3 84

l! 95

88,439 88,030 77,903 73.700

328.072

Electric Utilities Herd 5pA

Electrical Equipment Solarworld AG hexans CA

81.290

90.91 7 67.837

1.07 0 79

158.754 1.86

Electronic Equipment & Instrumenls Germanos 5.4 Leica Gcos)sietns .4G

88,161 86,416

1 0 3 1 0 1

2 04 174.577

121.581 117.188 114.194 65.595

$18.558

92,b77 87.456 82,632 80.227 78.881 71,646 65,324 40,233

5YY,076

90.698

85,042 81,129 43,056

209.227

99.831 89,319 85.845 65.964

1.42 1.3T 1.34 0.77

Energy Equipment & Services Sinh Ollshrrrc SA 'IGS Nu ec Leophyical Co , ASA

Technip SA sm or&irt. Nv

4 YO

Health Care Equipment 6r Supplies CiK Store N o d AS Phvnak Holdin AG Strauinann H o ~ i i r i g AG .4m lilon $1 An1/u AS - EkkIz AZD. D Gcan e AB B Kubek Blocarc Hulrl irig AG

1 17s) I 02 0 97 0 94 0 92 0 83 0 76 0 47

7 01

Health Care Providers & Sewices Generale de S a m

Holels, Restaurants & Leisure Whitbread FLC

Greek Organizauori uf 1,ootball PropiosiicS AulL>grlll 5p.4

1 06

1 .00 Lj.95 0.50

2.45

1.lT 1.177 1.00 0 77

Household Durables Bang &z Olulsen A5 R K . , + mmne PLC Rational A(; Fnurlis S A

940,969 3 99

0.76 Internet Software & Services Buss Media .4R

IT Services t l lQ Inrcrnational AB Aten Reply SpA

64.622 SWF I E K

5 t K EI!R EI!R

1.39 1.01 0.48

2.88

1 0 5 17.52

1.57

1 33 1 32 1.27 1.24 0 99 0 80 0 59

118.873 86.333 40,826

246,032

89.810 44 389

Leisure Equipment 6r Products Rrncreau Juiiibo SA

FR4 GRC

FUR EI!R

134.199

Machinery Pallinger AC; Charter PI .C Andritz A(; Wharrnan PLC Rheinineiall AG Wartsila OYJ, R Interpump Group SpA

N!T GBR

EUR GRP EI!R

I 1 3.983 113,039 108,419

84,620 68.335 50.397

I O S . R ~ S AL! I G B R DEI! 1 IS ITA

643.632 - - I.34

49

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frank l i n European S m a l l - M i d Cap G r o w t h Fund -


(Cur rency - EUR) A l l securi t ies a re ord inary unless o the rwise s t a t ed

Marine Kuchne Fz Nagel International AZG 360

2,750 5.426 3,793

32.350 12.880 2.100

26.250 1.270

1.234 15,863

998

8,792

12.51Cl 8.700

5.678

1.580

1 8.440 13.620

.3.540

600 2.092

10.570

LHE CI 11, 80.672 0.94

Media CIS li\t.num Aiitcna 3 de Ielevision 5.4 C:nitt.rl 1nlrrrit.l AG Indcpoideut Sews br Media I'LC Taylor S. I:ranci< Grvup P1.C Modern Timcs Group A B

DEL! EC:R ESP FI'R

DEI! ELR

95,425 89.716 89,135 82.493 80 943 53.189

1 1 2 1 os 1 .04 0 97 0.95 0 62

5 75

IRL GRR 5WE

LL'K L B P SEK

490.937

0.04 0 86

Metals & Mining ~1ubact.x SA \:nestalpine AC;

ESP ELK AZUT EUR

80,062 73.533

153,595

90.501 73.978 48904

1.80

Office Electronics

Laird C;ruup PLC Ainazys Holding AG

Nerrpost S A 1.M GBR CHF

F.L!R GBP CHF

1 Oh 0.88 0.57

214.383 2.51

1 3 7 Paper & Forest Products Hlt.iclt.rcr AG

Pharmaceuticals hktla AB, .4 Shire Pharrnarrulicals Group PLC

EUR 125.286

1.23 0 92

SWL GBR

SEK GBP

105.176 78,830

2.15 181.006

1 57 Real Estate Fadesa Inrnobiliar SA

Noad & Rail D W De Sammenslut \:ugnrnat.nd AS. B

Software Ternenus Group AG 5 u perorhce ASA

EbP LUH 134,285

1 10.906 DYK DKK 130

CLIL YOR

CHF N O K

95.471 50.296

112 0.59

14S.Tt7 1.71

Specialty Retail k l e r Bt.d Holding S V

Iexrilt-5, Apparel & Luxury Goods :Ididas-Salomoii AG .rod's Sp.4

E L R 85.137 1 .oo

0.97 0 97

DEL IT11

kL!R EUR

83.2EU 82.4P7

165.767 1 9 4

118 Trading Companies & Distributors Grahon Group

.IOTAL SHARES

TOTAL .IRZNSFERABLE SECLRlIIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TOTAL INVESTMENTS

1RL LCK 101.155

8.433.583

8.433 583

8,433,583

98 71

98 71

9R 71

so

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Global Growth Fund -


(Currency - USD) A l l securi t ies a re ord inary unless o t h e r i v i s e s t a l ed

Nuiiiher oC a 01

stiarcs ur Dercriptioii Counrry I rarlirig hlarket ne1 lace value code current> \-slur assets

TR,\fiSFERARI F SECL'RI1 ILS .4LNIIIED TO :\Pi OFFICIAI. STOCK EXCl MhGL LlSI-lPiL SH.4RES Aerospace 6r Defence I!nitd Technolugif> Curp L!SA I:SD

LSD

C!5D GBF

LSD

Im

CHF LSD GRP 1;SD L: 5 D

1.16 2.000

1 ..500

1.500 5,000

3,000

12.000

2.000 1 .OD0 4,000 1 ,00g 2,000

1.5017

1 ti,000 3.500 7.000

18,000 7,000 2.500

10.000 1 ,800

6.000

2.500 2.000

100,000

11.000 3.000

880

18.000 1,500 7.000

2.600

3,1700

7.000

12.000

1,500

102.700

103.74U

Ht7.895 73.718

117 Air Freight & Logistics I!nned P m c l Service Inc , R

Beverages PtpsiCu Inc Diageo PLC

CSA

L 5 A GRR

0 91 U.83

154.61 3 1.74

131.970 1 49 Biotechnology (illcad Scientes lrlc

Building Products Asahi Glass Co , Lrd

Capital Markets URS .4G 1 t .g \lason Inc. Man Group PLC Guldrnan Sachs (;roul> Inc (Xigroup lnc

[ !SA

J P S

CHE L!5A GBR U5A [!SI1

126,236 1.42

156 030 104,110 103 689 102,020 92.460

558,309

174,353

198,439 175.201

1.76 117 1 1 7 115 1 0+

ti 29

1 74 Chemicals Syngenta .\G Commercial Banks Anglo Irish Bank Corp.. PLC Erste Rank der Oester Sparkassen AG Si. George Bank I.ld. Grupo hnanciero Raiiorte S A de CV. 0 HROS P1.C fiational Bank or Grctcc 5.4 DRS Group Hulrlirigs L t d Rank of ~\merica Corn.

CH E CHF

IRL AL! J Al!5 hlEX GRR GRC SGP I!SA

EL!R EUR AL!L) 41XN GRP ELR StiD LSD

2 24 197 1.57 1.34 1.22 0 96 0 96 0 92

11 18

1 7 0

2 10 1.47

139,650 118,911 107.908 84.942 83.801 82.098

991,950

Communications Equipment J u i i p r Nciworks ltic

Consumer Finance Ailul Corp Acorn Co.. Lid

L!SA LSD 151 ,080

186.730 128,293

314.823

73.351

JPS I P S

3 55

Electric Utilities Huzncng Power International Inc.. H

Energy Equipment 6r Services SailwT" SpA E] Services Co

CHY HKD (7.83

EUR USD

161.752 157.340

1.82 1 7 8

3.60 319.192

94.640 Food & Staples Retailing 12'hole Foods Mzrket Inc

Health Care Equipment & Supplies Srni:h & fiephew P1.C

Gctingc AB. B S)mlhes lt lC

1!SD 107

2.00 1.86 1 .08

4.94

1.53

1 Ri

1 .h6

GBK CHE s\2 L

177,675

95,395 164.651

437,721

Health Care Providers & Services LnitedHealdi (;roup Irir

Hotels. Restaurants 6r Leisure Carriinl COT.

Household Products Reckitt Benckiser PLC

Insurance QRF Iti>urance Group Ltd

Machinery Illinois Toul \Vurks Inc

135,564

163.650

147,316

146.473

GRR

AL:S 1 65

1.54 119.520 1.35

51

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Global Growth Fund -


(Cur rency - USD) A l l securi t ies a re o r d i n a r y unless ntherwise s t a t e d

Tiumber of 93 01

shares 01- Desci-ipliun Cnuniry Trading XIarkeL nr1 facc valuc. COdC c:ii-renc) wlue 3sse1s

Media :\moldo h n d a c l u r i Ldirure Sp.4 hlcdiascl SpA h t w b Cor!' , l.:d , B N'PF Group PLC

142.931 11i.853 101,168 82.335

1 6 1 1 33 114 0.93

15.000 10 .OOO 6.000 8.000

30.000 4,000

5.000 2.300 2,800

.I500 3.000

6.000 1,000

17.000 10.000 12.000

21.000 5,000

1.200 3.900 3,000

20,000

3,000 25.000 2.500

1,000

2.500

3.000 117.000

ITA ITA u S A GBR

GHH GBR

CAN 1:sn RUS

cs.4 M I \

1SR CtiE

HUG JPN HKG

TWN (!SA

FUR ELR

GBF uw

GBF GUP

CAD

C'SD c m

L!SD LISD

LSD CIiF

HKD

H KD J py

LSD ISD

LL!K J R LSL) GRP

L.'SD HKD LSD

EUR

LS13

L!SD E U K

444.279 5 01

1.93 1.22

Mulli-Line Retail Tesco FLC hex1 P1.C

171,307 108.131

279,438 3 15

Oil & Gas 197.249 155 . O W 103.124

2.22 1 7 5 l . i6

355.41 3 5.13

1.511 1.32

Personal Produrrs Avoti Producis Inc Estee Lauder Cos . Inc . '4

132.475 117,390

2.82 249,865

186.830 126.541

313.381

167 903 1 12.324 106,166

386.393

2 10 1 43

Pharmdcwlicak Tci a Fharniaceuucal Indusmes L d , BDR Roche lluldirig AG

3.53

1 89 I .27 1.20

Real Estate Sun I-lung Kai Frnpertles Ltd Uilsui Fudosan Co . Lkl S ~ r e Pacilic L d . A

3 36

2 16 2.10

Semiconductors & Semiconductor Equipment ra iwn Semiconductor hlanulacturing Co.. Ltd , ADR Analog Lkvires Inc.

191,520 186.550

378.0i0 4.26

2.36 141 1.16 0 90

Software SAP AG Trend hlicru Inc. Cognos Inc. Thc Sage Group PLC

DEL 209.523 124.729 302.420

J PN C A N GUK 80'167

516.839 5.83

Specialty Relail k<lslenal Co. Espiit Holding5 Ctlico's FAS liic

USA I-IKG u 5.4

183.760 180.969 85.7170

2 0: L 04 0 97

450,445 5.08

247,686 Textilcs, Apparel 6r Luxury Goods Puma AG

Thrifts 6r Morlgage Finance Counlryulde Financial COT.

Wireless Telecommunication Semires Amtrica \lo\il S A de CV. L. ADK Telehica L1.luvilt.s S A

DEI:

USA

ME>; ESP

2 79

1 09

2 02 1 1 9

3 21

9b : 8

t)b 18

96 18

96,525

178.830 105.632

284.462

8,5317,027 TOTAL SHARES

TOTAL TRANSFERABLE SECURITIES AVMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TOTAL 1NVESTMEN.IS

8.530.027

8.530.027

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Global Small-Mid C a p Growth Fund -


(Cur rency - USD) A l l secur i t ies a r c ordinary unless otherwise s t a t e d

shares 01' Lkscripwn Counrr! I d i n g Markri ne1 lace x-aluc cnde currrncy \ - a h asws

Kutnbcr of

IRILIN5FERABLE SECL!RI-TIF.5 ,4L)LllllED TO :IN OFFICI:\L. STOCK FXCI I.WGL. LISIIYG SHARES Aerospace 6r Defence Avviall lnc

Auto Components Kokian Renkaai OYJ

Biotechnology Alkcrrnes Inc Cell Gcnesys Inc. Prokin Design Lahs Inc Cepheid Inc.

(!SA

FIN

2,200

4.200

1.400 9.300 1,500 3,700

1.330

5.61717 1 .000

400

15.000

1.260 1.100

4.500 2.000 3.81717 2,900 3.400 4.400 1.300 2.700

13,570 890

1.2011 10.500 1.300

2,700 2.280

2.900 6.000 6.900

770

880

1.100

1.200 2,200

69.498 101 LSD

76,382 1 1 1 EL!R

58,168 49,755 30.315 27,158

L'SD L! 5 1) l!SD LSD

0 84 0 72 0 44 0 40

2 40

0 90

0 70 0 59 0 39

165.396

Uuilding Products Wenerherger AG

Capital Markets Tradestauon Group Inc. (;i-eenhill B Co.. lrlc ArMlaicd kkinagerj Group IIIC

61.749 ELK

48.048 40,510 27.332

LSD L5D USD

11 5.890 1 68

56.974 Chemicals Tcqu lrik Manulacturing C:o , Lid

Commercial Banks Texas Regional Bancsliai-es Inc , A Signaiurc Bank

J PI' 0.83

1:SD I:SD

38,405 26,840

0 56 0.39

65,245 0 95

Commercial Services & Supplies 1-orrcster Research Inc. Ritchie Broihm Auc1iunecrs Inc Park24 Co . Ltd Hxia Tour Scivice l : ~ FTI Consulting Inc Zenrin Cu . Lid. CtL4 International Inc Coiris~ar Inc. ABC learning Ccn1rt.s Ltd. Eurofins Scieniific

80.237 77,100 i x424 72,885 71.060

_ _

70.181 70.005 61,263 57,658 29,292

1.16 1.12 1.09 I .Oh 1 03 1.02 1 02 0.89 0.84 0.42

665,l 06 9.65

56.682 52.657 33.982

Communicatiuns Equipment 1;5 Set%-urks lnc hlicroiunc Inc. .4vnceni h r p .

USD 1!SD L!W

0.82 0.77 0.49

2 08

0.47 1 00

1 47

1.57 1.08 1 0 3 0.97

143,321

32.400 68.804

Computers & Peripherdls R1ckablc Systems Inc. .4xalto Iniernauonal li\

1 3 4 FRA

USD LLR

101.204

108.315 74,432 70,857 67.129

Construction & Engineering llRS Corp. CHIYODA Corp Kingspan Group PLC: EiRage S A

I:SA

IRI. FR4

1 Pli

320,733 4 65

Construction Materials Ime"y5

Distributors SCP Pool C O T

Uiversified Financial Scrvices GFI Group Inc Nasdaq Siock hlarkct Inc

60,640 1788 FRA EUR

38,799 0 56 L!SD

42.720 31,492

L!SA I 'SA

0 62 0.60

I 2 2 84.212

53

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frank l i n Global S m a l l - M i d Cap Growth Fund -


(Currency - USD) A l l secur i t ies are ordinary unless o therwise s ta ted

B ul

face value cock curreric) \%due assets shares nr Description Cnuntry Trading \larkel :It1

humber ul

Diversified Tclecummunication Services %>nus Networks Inc Cuinmvrimralth Telephone Enteipises Inc I ;indberg Tele\ision &A Taniura Taiku I luldirigs Inc I larri- Corp.

(!SA 1SD

N O H WOK u 5.4 c : w

102,773 83.823 82,929 78.852 4Y.936

1 .+9 1.22 1 20 1.14 0 73

21.530 2,000 6,670

10.000 1 ,hOU

1,020 1.480

-t,oo0

2,800

2.300 1.300 .t.l00 1,520 1,91717 1 .do0 3,400

2,700

1,100 4

1.000 13.090

310 992

1,500 2.4170

1.700 1.100 1,8i!U 1 ..to3 1.400 2,hOO

1 ,950

1.000 200

aoo

i.YYL1 17.250

220.171717

2.2uo 2.800

700

4.500

3.400

. . . JPli J PY L:SA L!SD

398.307 5 78

Electrical Equipment Sular\rorld AG Nexans SA

DLC: FRA

FUR EKR

89.911 59.992

1.31 0.87

149.903 2.18

1.29 Electronic Equipment & lnslruments lieomax Co.. Lttl

Eleclrunic Equipment & Services Bnglitpoint Inc.

Energy Equipment 6r Services Forest ihl Curp SL1M Olfshnre W\' Superior Ener!&' wrrkes Inc Technip 5.4 Universil Cumpression Holdings Inc Atwood Occaiiics Inc Bngham Lxploraucm Co.

JPN

ti SA

J PY 88.596

62,132 0.90 C! 5 L1

96.6W 89.189 i2.980 70 551 68.856 hl.ih0 3 1.032

1 40 1 30 1 06 1 (12 1 .oo 0 89 0.45

LSA N1.D 1!5.4 FRA LjSA 1;SA

USD EL'R LSD EI!R

('SA

490.778 7 12

68.206 0.YY Food .& Staples Retailing Kibun I~uotl Chemila Co , Ltd

b u d Products Uiiicharm Petcart' Corp Lindt & Spruengli (:hocolatcr Work, Ltd.

JPY;

0.92 0 89

JPN THE

J py Ctil:

63,416 61.304

124.7217 181

0 96 0 95 (7 91 0 91 0 86 0 59

65.990 65.894 64,573 62.981 59.520 40,416

Health Care Equipment &r Supplies Kesb1t.d lnc. Gyrus Group PLC Siraumann Holding AG Amplilrin 'IpA A(I\,anced Neui-omudulatiori Systems lnc. N ektai- .I ht. r;ipt'ui 1 cs

[:SA GBR CtiE ITA

USD GBP CHF tL!K I S D USL1

us.4 I:SA

359,374 5.21

91.766 80.894 76.086 72.912 ih.ZS0 35.880

Health Care Providers & Services Sunrix Seninr Liiing Inc. Pediatnx M ~ ~ l i c d l Gnlup Inc ..\merican Healihivays Inc Lnited Surgical Partners Internauond Inc :\MERIC;ROVP Curp. Lknrlrite Inlernational Inc

1 3 3 1 1 7 110 I 06 0 82 0 52

6 00 51.3.818

0.79 17.72 0 $1 0 02

Hotels. Restaurdnls k 1-eisure Shuffle !dasier Inc. Red Rohin Guurmct Uurgt'rs Inc Vail Kcsuns lnc Cosi Inc

54,658 49.584 28.100

1.376

133.718 1 .Y$

0.97 0 96 0.85

66.708 66.440 58.745

Household Durables 1 clurlis SA Rayiiiarine PLC Peace Mark Holdings Ltd

GRC GBR tiKG

EUR GRF HKD

191.803 2.78

Household Products \lilbon Co.. Ltd Pre51ixc Brands Holding5 lnc Central Gardui k Fei Cn

J PN L S A

156.072 2.26

0 83 lnduslridl Conglomerates O X Coil'

Internet & CaPdlog Retail Audiblc lrir

56.920 JFk

59.058 USD 17.86

54

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Global Small-Mid Cap Growth Fund -


(Cur rency - USD) Al l secu r i t i e s a r e v rd ina ry unless o t h e r w i s e s ta ted

hurnber ol shares or Dexnpiion

face value Coun:!)- Trading

CUdT currency

w of ne1

dSSE15

0 86 0.62 0 61

2.09

1.09 1.05 0.46

Internet Software & Services Packwe r Inc . wchMcihods Inc. Secure Compuung Corp

4.200 7,600 3.Y00

1.600 6,300

500

2.550

2.100 7.000

13.020 1,600

4,200 300

2.563 4,YOO

600 18.770

600

810 2.500

$370

6,260

2.800 8.200 3.100 5,600 1.100

1,YLW 1,100 1.100

2 1 6.000 3,800

L S A LS.4 us.4

1!5A L!5A I 'SA

LjA

M A JFN GBR

USA CHE

FM 1'5.4

JPY ESF UEA

FR4 [!SA

DEI!

ALS

134 C'S'% 1;SA L!SA 1!SA

39,220 42.560 42,432

144.2 12

IT Senices Cognizani Technology Solutims Coil> , A R5A Sccuniy Inc CAC1 Inkma~ional In i... A

75.408 72.323 31.580

179.312 2 6(7

0 73

1 02 0 96 0 Y l 0 50

50.286 Leisure Equipment br Pruducts hian-el Enteqmses Inc

Machinery Iuy Global Inc Dailuku CU.. Lid \+'hatman P1.C Wahtec Corp

70.539 66.375 62.685 34.368

2 3 3,967 3 3Y

79,842 63.660

143.502

64.970 50.274

1.16 0 Y2

2 08

0 94 0.73

115.244 1 6 7

1.02 101 0.46

Me& 6r Mining Sumiiotno I ilanium COT. Tubacex SA Quanex Corp.

70.588 69,271 31.806

171,665 2 49

Office Electrunics

BE1 Technologies l r~c Neupus1 SA 71,302

66.700 1 03 0.97

2.00 1.38.002

96,040 Paper & Forest Products Plleiderer A(;

Road & Rail Toll Holdings Lld

1.39

62,253 0 90

1 1 8 1 OR 1.02 0 Y3 0 42

Semiconducrurs & Semiconductor Equipment AIM1 lnc

l7El Lo. CrFdCtlLt' S)Slern5 COT.

81.228 74.210 70.711 64,512 28.809

41icI-el Inc. Copex Coq'

319,470 4.63

Specialty Retail New Ynrk k Co.. lnc Aeropostalc Inc Marinernax Inc

40.014 36,960 34,375

13.78 0.54 0.50

C!S.4 [!SA U S A

11 1.34Y

61.837 52,060

113.907

Textiles, Apparel & Luxury Goods Iup h r m Internation~l 1.1~1 True Religion Apparel lnc.

HKD 1!51)

1 6 5

96 58

Yb 5Y

96 58

TOTAL SHARES

TOTAL TRANSFEKAULE SECURITIES ADM IITED TO AN OFFICIAL ST0C.K EXCHANGE LISTING

TOI'AL INVESTMENTS

6.657.653

6.657.653

6.657.633

FRANKLIN TEMPLETON INVESTMENT FUNDS - F r a n k l i n High Yield Fund -


(Currency - I-JSD) A l l secur i t ies a r e o rd ina ry unless o therwise s ta ted

Numhcr 01 % of share5 ur DesLripiion (:nuiitr)- Trading .Li;rrket lie1

f.,1ce \dlUt. code currency \ alue assets

S tiAR€S Hotels. Restaurants & Leisure Jack in the Box Inc

Wireless Telecommunication Services hll kiddings I n c , B Nextel Communicauurrs In<. .. A Dobson Cimiiiiunications Corp.

34.128 900

39,594 33,042

233,604

1.3+2,566

40.422

103.4Y7

4?0,3 3 3

24: ,723

Sri.00~7.000 45,000,000 35 ,000.Q~30 40.000.000 34.600.000 34,000.000 30.000.000 317,0017.000 30.300,000 30.000.0170 30.000.UOO 29.000.000 .30,000.000 30.000.000 30,0017,000 31.000,000 3(7,0170.000 31.500.000 27.500.000 25,025.000 25,801).000 29.100,000 26.000.000 21 ,000.000 27.000.00il 25.700.001) 27,000.(100 25.300,003 23.400.000 31,000.000 24.500.0017 2s.000.000 21,0170.000 22.000,000 29.800.0170 22,0110.000 22.400.17170 20,700.000 21.100.000 20,101).0L10 19.300,000 20.900,000 22..3170,000 17,800.000 20,000.000 19.000.000 20.000,000

0.00

u 57'4 c: 5 L) USA I?SD US.4 (!SI)

0 08 0 04 0 03

2.531.640 1131,207

999.153

4.659 000

4.693 128

4 693,128

0.15

0.15 TOTAI. SHARES

TOTAL TRANSFERABLE SECURUIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE 1-ISTING

TRAhSFERABLE 5ECUKI 1 ILS DEALT I l i OK IINOTHER REGULAILD MARKET SHARES Auto Components Camhndge Industries Liquidating Trusr Interest

Commercial Services 6r Supplies Goss Hnldings Inc.. B

Diversilied ~lrlecommunication Services Gd-hei Entertirises Inc.. B

Industrial Conglomerates VS Holdinp

Wireless Telecommunicalion Services Iiiternational Wireless C.ommunications Holdings Inc

TOTAL SHARES

BONDS Corporate Bonds Dvneg!- I-lolrlings Inc.. R 77%. 02/15/12 L.[ p;lso Corp.. 7.751%, 01/15/32 Edison hlission LriergL. 9.877%. 04/15\11 QHCSI Coiiimuiiications International Inc.. 7.508. 02f15/14 Centennial Communicalinns COT.. 8.12596, 02/01/14 Boyd Gaming COT., 6 75%. 04/15/14 hlidwest Genrrauon 1.I.C. 8.75%. 05/01/34 VanEuard Ht:Ah Holding Co., 11 LLC, 9 11090, I 0/01/14 Owens-Illinois Iiic , 7 80?0. 05/15/18 Xerox Curp , 6.8758. 08/15/11 .Arch \~eslern Finance. b 75%. 07/01/1 3 Case New 1lull;rritl Inc , 14411. 9.258, 08/01/11 Abitibi-Consolidated Inc . 8 375%, ++/01/1 5 hlGM hlirage Inc.. 134A. 6 h25'%. 07/15/15 5caly Maitrtss Co., 8 25% 06/15/14 R2yivac C0-p. 7 375%, 02/01/15 ]miens I t1 Corp . 7 625%. 10/01/12 Sol-rek Iiic . 8.50%, 09/01/14 Irisighi Midwest. Senior Note. 10,50%. 11/01/10 BCP Crystal Iluldings Crrq.. 9.6258. 06/15/14

l.lK Tclei-ision Curp . 6 50%. 05/15/13 P e a b d Lrwrgy Corp , h 8 i 5 % 03/15/13 Aquil~ Inc . 14 873% 07/01/12 Dole Feud, Co.. 7.25')n. 06/15/iU Axar Corp., 7 8T5,;h. 06/15/14 I e r i e ~ I I C B I ~ I I C I ~ C Crrrp., 7.3i5%. 02iOl/l3 D6a\iia Inc . 7 25%. 03/15/15 Smithfield l~ouds Inc.. 7 75'k. 05/15/13 JSC, Funding PLC. T 7 5 8 , 0+/01/15 Buckeve ~Iechrwlogies Inc , t! 50%. 10/01/13 l.)ire~i; Holdings LLUFinancing CIu , h 375% 06/15/15

[\;exid Cnniinuiiications Inc., 7 . 3 7 5 8 . 0W01/15 Inh rSa l l.i:i.inte P1.C 10 375%. 11/15/08

halco Lo.. 8 875%. 11/15/13

1MC Llubal l r ~ r , 10 87S'B. 08/01/13

inos Inc , 6.875%. 03/0li16 le liorth Aincnca Inc . 6 50%. 11/15/10

Lamar M e d ~ a C t l ~ , 7 258. 01/01/13 Speedway Murvrsporls Inc.. 6.75Y~ 0W01/13 C;rnWcsi Mcdia Inc.. 7 6256, i14/15/13 Pnde Intemaaonal Inc . 7 35%. 07/15/14 Charter Corrimilnicmons Holdings 11, 10,2576, 09/1 5/10 Nui-Le1 SClhilrks C : O ~ . . 6 875%. 09/01/23 Ididlaw International lric,. I0 75%. 06/15/11 Chcq>eake Eiwrp) Corp . 6.625% 01/15/16 Eircom 1.urirling. B 25%. 98/15/13 'rennescc Gas Pipeline Cu.. 7 008. 10/15/28

0 15

1 S D 6.713 0.00

0.00 0 I.'SD

803,199 0 c3 L!SD

0 00 0

0.00 L!SD 18.12Y

828.041 0 03

161 1.44 1.35 1 24 1 2 1 1.14 1 1 0 1 06 1 04 1.04 1.02 1.01 1.01 1 00 1 00 0 99 0.97 0.96 0.96 0 92 0 91 0 91 0.91 0.YO 0 90 0.89

084 0.84 0.84 0.82 0.82 0.81 0 78 0 7; 0 T3 0.72 0.72 0.71 13.71 0.70 0 69 U.69 0 68 0 68 0.68 0 67

0.w

u5.4 USA M A IS'\ CiSA [!SA [!SA L!SA I! S A LS.4 1:SA L S A CAN L!SA [.!SA

49.2T5.000 44.100,000 41.168.750 3R.050.0P0 37,l%2,000 35.020.0P0 33,750,000 32,550,000 31.966.5@0 31.950.000 31,125,000 30.812.500 30.750.000 30,487.500 30.450.000 30.i47.5110 29,775,000 29.452.500 29,287.500 28.153.125 27,790,500 2T,790,500 27.690.NIO 27.6 15.000 27.540.000 27.306.250 2h.797,500 25,812,500 2S.623.000 25.575,000 25.1 12,500 25.000.000 24.727.500 23,870.000 23,542.000 22,715,000 22.176.000 21.942.000 21.8.38.500 21,607.500 21,278.250 21,239,625 20.962,000 20855,904 20,750,000 20,710.000 20,516.380

56

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in High Yie ld Fund -


(Currency - LJSD) A l l secur i t ies a re o rd ina ry un le s s o the rwise s t a t ed

humber of shares or l)cscriptiuri

face \-aluc Cuuritr) .Trading

cnde currenc!

20,500,0170 19,300.000 1 Y ,800.000 19.700.000 18,600.000 17.900.000 17,500,000 23,300,000 17.600,000 20,30~7.000 17.200.000 18.500.000 16.900.000 15.13Y.000 16.200.000 18.000,000 15.500.000 17.400.000 16.000.000 15,000.000 14.000.0012 15.800.000 16,000.000 18.200.000 l5.000.000 15,900.000 15.900.000 15,100.000 16.000.000 15.000,000 14.000.000 2c).800.000 15.000.000 12.661 .000 14.000.000 15 ,000.0017 12,900.000 15,000,1700 1:3,1700,000 12,000.000 13 .zoo ,000 12.415.000 12.700.000 12,000.000 13,000.000 12.800.000 12,000.000 12,000.0170 1 1,489,000 12,200.000 12.000,000 11.700.000 12.50~7.000 11.400.000 13,600.000 11.800.000 11.900.000 11.500.000 12.000.000 10.000.0170 10,600.@00 10 .w0 .t71717 10.1 00,000 10.h00.1700 10.000,000 11.000.000 12.000,000 10.000.000 16.300.0t70 10,000.000 10.000.000 Y.500,(300

10.000,000 9.000.000 9,000.000 Y.000.000 9,000.000 9.700.000 9.0IQ000 8.900.000 8,700,000 8,800.000 8.100.000

Corporate Bonds (conrinued) Kltc hid Corp , 9 25%. 06/0;/13 (;izpIiic Fackaging Iiiienialiond Curp , P 5 0 6 . 08/I5/11 hlillicoin hitciiiational Cellular SA. 10 00%, 12/01/13 Fvrcst Cit) Lntcrpriws Inc . 6.50%. 02/01/17 Hanover Equiptnent Trust 01. 8.50%. 09/01/08 Frcwnius Medical [:arc Capital Trust I!. 7.875%. 02/l?!/08 lntelsat Bermuda Ltcl . 8 615%. 01/15/15 Great Lakes Drtdge k Dock Cup . . 7 75%. i2/15/13 X.o;-elis Inc , 7 2i%. 02/15/i5 Simmons Co.. 7 875%. 01/15/14

Mohegan Tnbal (iaining, ti 877%. 02/15/15 Del I\lcdia \Vest I.I.C, 9.8756. U8/15/13 Dex Media he. . B. 8.00%. 11/15/13 Invensys FLC, 144A. 9.875% 03/15/11 Rogers Wireless Communicationi lnc , 7 50%. 03/13/15 CSC Holding h e . , 7.6258. 07/15/18 Nextel Coinniuiiicdtions, 5.9570, 03/15/14 Nextel Fartners Inc.. 8.127%. 07/01/11 Lyoiidcll Chemid Cu.. 10.50oX.. 06/01/13 Quzhecor \ l e d i ~ Inc'., Senior Uisc I\'ute. 0.00% t>i/li/i 1 EchoStar DBS (:orp . h 375%, 10/01/11 Qwcst Corp., 6 8758. OY/15/33 hlilacron Escrow Corp.. 11 50%. 05/15/11 Voughi A i r c d t IridusLries Inc , 8 00%. 07/15/11 Lrnrnis Operating Co . 6.875%. 07/15/12 Hosr \larriutt LP. 7 00%. 08/15/12 Time Warner Telecoiii Holdings In< , 9 25%. 02/15/14 Allied \Vase korth America Inc , 7 875%. 04/15/13 P i n d c htcrtainmcnt Inc.. 8 75%. 10/(71/13 JohiisuiiDi\,ersev Holdings Inc.. Scniur L k c Note. 0.00'h. 05/15/13 Chesapeake Enkgy Curp , 6 255. 01/15/18 lspar Inland I!LC, 9.759(., 04/01/14 Currections Corp. of Ainenca, 7 50%. 05/01/11 Tirric Warner .lelccum Holdings Inc.. 9 25%. 02/15/14 Royal (:arihl,eaii Cruises 1.td.. 7 , 2 5 6 , 03/15/18 Gcncral Motors Acccptance Coqi.. 6 87590. 08/28/12 E*tradc hnancial COT, 8 170%. 06/15/11 Fiinep SA. Senior Kotc. 10 50%. 02/1.5/13 Flextronics hiteniatirrnal Lid , 6 50%. 05/15/13 Fanaiiisa~ Corp., 9 00%, 08/15/14 Inmarsat Finance PLC. 7 ti2S76. 06/30/12 D.R Horton Inc , 8 5 0 % . 0+/15/!Z kewpage Corp . 10 00%. 05/01/12 Lmmis Communicauons Corp , FRN. 9.3153%. 06/15/12 + \Villiam I.)on tlurnes. 10 75%. 04/01/13 I l us t 1l;rrnott LP, Y.25'X. :0/01/07 DIRECT\; Holdings LLC, 8 3756. 03/15/i3 Ititelsat Bermuda Ltd , 8 25%. 01/13/13 Aquila Inc , i.625?0. 11/15/09 Texas Gcnco I.I.C. 6.875%. 12/15/14 Cablcvision systems Coq,.. R. 8.00%, 04/1Y12 Hanow Equipment lrust 01, 8 75%. 09/01/11 Young Rroadca.cting h . . P 75%. 01/15/14 Ammcan Cellular Coil>.. 10 00% 0W0l/il XfDF tlcquisiiioris PLC, 9.6258, 10/01/12 Rural Cellular Corp., 9 875%. 02/01/10 Rhodiii SA. 7.625%. 06/01/10 Gec.r,e,ia-Facihc Corp.. 8 017%. 01/15/24 Forest City Enicrpriscs Inc , 7 625%, 06/03/15 Caevirs Lntertaiiiment Inc., 7 875B. 03/15/10 Plains Exploration B Prorluction Co . 7 125%. Wl5 /1+ L-3 Curnmunications Corp , 6.1258, 01/15/14 Foundation PA Coal Cv , 7.256. 08/01/;4 .Tenet Heakhcare Corp , 6 50%, 06/dl/l2 Adelphi Curnmunications Coqi , 10 87530. 1(?/0~1() * hlCI Inc , 7 688%. 07/01/09 Marquee Holdings hi< , Senior Disc Note. 0 00%. 08/1 S/1 4 Medianews Group h e . . 6.875% 10/01/13 Huntsman Intrrrwiunal LLC, 7.375% 01/01/15 'Xestingliouse ilir Brake 'TcL hriulogies COT . 6.8758. 07/31/13 1-3 CI>l~i~iuriIcaticins Corp , 5.875%. 01/15/15 L-3 Cominuiiicaiions Corp . 7.6258. 06/l i l l 2 Royal Caribbean Cruises Ltd.. 6 873%, 12/01/13 Canwest Media Inc , 8 00%, 09/15/12 Rurd Cellular Corp.. 8.25%, 03/15/12 jaiimina-SC1 Corp . 6 75%. 03/01/13 R o :'rc Cable Inc . 6.75% 03/1 7/15 Der Gontc Coi-p. 6 75%, 0U15/15 KTL Cable PLC. 8.75%. 04/l 7/14 AMC Fntcr1;rinment Inc . 8 625%. 08/15/12 Uni:cd Surgical Parincrs Intcriiatioiial Inc . 10 OOr.. 12/1J/ll

19.987.5(70 19,975,500 19,800.@00 19.749.250 1 9,437.000 18,750.250 18.7 s0.000 17,766.250 17.754,000 17,759.jOO 17,544,000 17.482.500 17,364,750 17,334,157 17,293.500 17.280.000 16933.750 16.878,000 1ti.700.000 16,350.000 16,082,700 15.977.770 15,910.000 15,856.750 15.825.000 15.820.500 15,820,500 15,751,750 15,520,000 15,312,300 14.910,000 14.898.t700 14.850.000 14,741.202 14.647.700 14,550.000 1 +.254,500 1.3.750.035 13.747.500 13.740,000 13,728.000 13,609.944 13.462.000 13.1 40,3 12 13.097.500 13.088.000 13,080,000 13.020.000 12.781.513 12,657.500 12.450.000 12,372.750 12.311.500 12,169.SO0 12.1175.000 lL,O36.000 11.959.700 Il,Y31.250 1 1,i00,000 11.550.000 11,395,000 11.250.000 1t7.857.50(7 10.653.000 10.750.000 10.505.000 10.5@0,000 10.437.500 10.024.500 9,962,500 9,925,000 9.785.000 9.750.000 9.630.000 9.630.000 9,717,500 9,450,000 9.312.000 9,225.000 9.1 22.500 9.102.375 Y.064.000 8.950.500

0 65 0 ti5 II 65 0 65 (7.64 0.61 0 61 0.58 0.58 0 . 5 0 57 0 57 0 57 0 57 (7.57 0.56 0.55 0.55 0 55 0 53 0.53 0.52 0.72 0 52 0.32 0.52 0.52 0.51 0 51 0.50 0 49 0.39 0.49 0.48

0.48 0 47 0.43 0.43 0 45 0 45 0.44 0 44 0.43 0 43 0 53 0 33 0 43 0.42 0.41 0.41 0 40 0 40 0 40 0 30 0.39 0.39 0 39 0 38 0 38 1137 0.3T 0.35 0.35 0 34 0.31 0 34 0 34 0.33 0.33 0.32 0.32 0 32 0 31 17.31 0.31 (3.31 0 30 0 30 0 30 0.30 0.30 0.2Y

0.48

57

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in High Yield Fund -


(Cur rency - USD) All securi t ies are o rd ina ry un le s s o the rwise s ta ted

Kumbe:- ol B ill shares or Description C u u n q .I rarlirig Markc1 ne:

lace value code currcnc!- value a55T15

8.000.000 8.000.000 8.900.000 8 ,~7OO,OOL! e.000,000 I .i>0,0(70 7.334.000 7,000,171717 7.600.000 7,400.000 h,50@,000 7,600,0@17 6.5i)0.000 9.~700.171717 6.0017.000 6,000.000 6,000.000 7,1700.L!0L! 6,000,000 5.000.000 4 .9 1717,000 5.000.OOL' 5,1100,1700 6,400.000 4,800.000 5.700.000 't.700.000 5.000.000 4,382.000 $.000.000 3,h00.tw! 3.000,c700 2,729 ,000 2.100.000 1.948.000 1.630.000

500.000 800,000

3,j00.(700 1.900,000 1.733.1789

-7 -_

30.014 6.i)OO

5.00u

4.750

11 .DO0

Corporate Hunds :ciiritintied~ Park Plecc Eniertaiiiiiient (:oip.. 8 875%. 09/15/08 Loiigview Fibre Lo.. 10 009i.. 01/15/09

Titan Corp.. 8 00%, 05/15/11 'I'RW Aulonionve Inc.. Y 3758. DU15/13 C:M5 Energy Curp.. 8.50%. 0 W W l Karl1u Ont IIiC.. 6 3778. 172/15/13 %oiic Container Corp . 8 373%. 07/01/12 Equist;ir,Cht.mi~dls 1.P. 10.625% 05/0i/ll AI ied Waste horth .4rnrricz l r ic,, R. 5 75%. 02/i5/11 Chi5 Energ) Cor]', 9.875'X. 10/15/07 Charter Conimuriic;ilivns tioldings LLC. 11 T5%. 01/15/10 Argosy Gaming Co.. 7.00'%, 03/15/14 Georgia Facilic Gorp . 8 00%. 01/15/14 .Advanstar Commuiiications. 12.00%. 02/15/11 Adelph1;i Cornmiinledlions Corp.. 7.875%. 05/01/09 * Rile Aid Corp.. 7 50%. 0;/15/15 R q a l Carihhcaii (.:mists Ltcl.. 8 . i 5 % . 02/02/1 1 C;eorp,i;i-Pacilic Corp.. 9 3758. 172/01/13 CUS Energ\ C o w , 8.908. 07/15/08

- . . . .. . . . . . . . . . . . . . I:niversal Compi-ession Inc., 7.2596. OYli/l0 Swio!i Cdsinos Inc , 6.00%, 04/01/12 Adelphia Communication> Curp , 10 27%. 06/15/11 * Yell hriance BV, Senior Disc. b t e , 0.00%. 08/01/1 1 Case New Hullarid I r iL . 9.2516.. OR/Ol/il Statim Ca51tios Inc.. 6 500h. 02/01/14 Fresciiius Medical Care Capilal 1 rusl. 7.8778, 0Wl.5/11 L e d Partners lnc , 12.50'5, 11/15/09 k n a l Caribbean Cruises Ltd.. 8.00% 05/15/10

Lvondell Chemic?Cu.. 9.875%. 05/01/07 Lknclc.ll Chcrnlcal Co . 9.625%. 05/01/07 App Inicmational Finance, 11 75%, 10/01/07 * Asia Pulp &r Papt.r Crr , 1 .1~1 , 12 00% 02/15/W *

Fchosrar DBS (:o 9 125%. 01/15/09

TOTAL BONDS

WAKKANTS Aerospace & DeIence Loyal Space & Commuiiications Ltd., warrants., 12/27/06 Lural Space B Coniinuiiications Ltcl., u.art;inrs., 0111 5/07

Diversified .relecummunication Services Pularirl Ttlecoin Finance. warrants , 144.4. 12/01/07

Energy Equipment & Services Transocean Inc , warrants , 14% 175/Ol/L!Y

TOTAL WAKKANTS

TWAL TRANSFERABLE SECURIIIES DEA1.T IN ON ANOTHER REGLI-ATED MARKET

TRAYSFERABLE SECUKII 1E.5 KOT AD!vllTIED TO A h OL-I~~ICIAI. STOCK ESCHANGI: LISTIkG LOR DEAL-I Ih OK AXOTHER REGUMILL) MARKET SHARES Wireless Telecommunication Services Dohson C:ommunicatiun; Corp , 6.0Wo. pfd.. cvt.

TOTAI. SHARES

USA L:SD [!SA 1!5'4 USL? US.4 L:SD

USD VSA 1!5D

L!SA IJSD USA U w

L!SA US13

USA L!SA

POL

L!SA

I!SD 1!FD

USD

1!SD

8,950,001) 8,560.000 8,744,000 8.460.000 8.400,000 8,350.625 8,159,075 7.8'tO.OOU 7,51$.500 7.71 1.000 i.206.875 7,144,000 7.117.500 7. IlO,U00 6.637.500 6.637.500 6,435 .000 5.950.000 5.790.000 5,787.500 5,567.625 i.462.500 5.275.000 5.184.000 +.980.000 4335,000 4.794.000 3,512.500 4,360,090 4,250.000 3 .69 0.0ou 3.230,000 2.799.771 2,336,250 2,079,490 1.678.9017

536.250 303.032

39.375 24.141

@

0 29 0.2H 0.28 0 28 0.27 0 27 0 27 0 26 I7 25 u 25 0 24 0 23 17.23 0.23 0.22 0.22 0.21 0 l Y 0 19 0 19 0 18 0 18 (7.17 0 I7 0.16 0 lh 0.16 0 15 0.13 0.14 0 12 0.11 0.09 0.08 17.07 0 05 0.02 0 01 0.00 D.00 0.00

2,681.223.419 2.681.223.419

329 1

330

I

87.67 87.67

0.00 0.00

0.00

L! 00

2,921,250 (7.09

2.921.561 0 0Y

2.684.973.041 87.79

LS.4 L!SD 1402.500 0 05

1402,500 0 05

58

FRANKL

SCHEDULE OF

N TEMPLETON INVESTMENT FUNDS - F r a n k l i n High Yield Fund -

NVESTMENTS AS OF JUNE 30, 2005 (continued)

(Currency - IJSD) Al l secur i t ies a r e o rd ina ry unless o therwise s ta ted

Number oC shares or Descriprion

vi l~ue

qh of Cuunir) Ti-adiiig Markei tic1

code currcricb value assel?

45.500,000 30.000 000 27,000,1700 27,353 000

24.700.000 17,200 DO0 12.5~0,000

8.400,000

3 430,403

1.881.676 1332,781

723,667

30,000.000

10,600.000

4,418.094

3.~93.81 1

BONDS Cutpurate Bonds Calpine COT.. 144A. 8 75%. Oi/lS/l> .4lk henv Eiiergy Suppl) Co , 1.1 C. 144.4, R 25%. 04/15/12 R d i n k hauunal Sen-ices LLC. 144A. 10.375'L;. 09/01/14 I i R G Energy lnc , l44A. 8.0070. 12/15/13 Glcncort. I:unding LLC. l44A. 6.0O'R. ~74/15/14 L3ujson Ccllular Systems Inc , 14tA, 9 875%. 11/01/12 L r n r Pridcco. E s ~ r u w . 9.00%. 12/15/09 Rogers &'ireless Coniiiiunicalims l r ic , 7.256. 12/15/12 Chesapeake Energ) Corp , 14-M. 6 3757. 06/15/15 Ritr Aid Corp, 144A. til25%, 12/15/08 T]iwi Kimia hnance Llauritius. 0.00'5. 34/29/29 TJIW Kiniia Finance Jhuriuus, 4.198. 04/29/18 Pindo Deli Finance Mauntius Lid , 0.00%. 04/29/25 Pinrlu Deli Finance Mauntius Lid.. F K N , 4 90%. 04/29/18 + TJIW Kiinia Finmce Mauririus, 4.19%. 04/29/15 Pindo Deli Finance Mauriiiiis Lid , FRY. 4.9WA. 04/29/17 '+

TOTAL BONDS

TOTAL TRANSFERABLE SECUR1.l IES NOT ADMITTED TO AN OFFICIAI. STOCK EXCHANGE LISTING NOR DEAIKI IN Oh ANOIHEK REGULATED MARKET

TOTAL 1NVESTMF.N.IS

* These Corporait. Bunds arc cumently 111 debuli + Floating Rares are indicated as at June 30. 2005

USD 33.897.700

l!SD L!SD 13.649.300 1!SD 10.918,000 USD 7.980.000 1:SD 1.349.463 I S D 1.047,782 USD 906,674

LSD 407.085 11SD 168,506

LSD 3 3 n . 1 4 ~

1 1 1 110 1 02 0 95 0 94 0 86 0 62 0 45 0 36 0 26 0 04 l! 03 0 03 O 01 0 01 0 171

238.714.668 7.80

238.714.668 7 80

240,117,168

2,929,783,337

7.85

95.79

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in High Yield (Euro) Fund -


(Currency - E U R ) A l l secur i t ies a r e o rd ina ry un le s s o therwise s ta ted

Number ul shares or Dcscnptioii r31F \dlUC

y3 l?r Cuuntrr. T'rading Markcr net

C U d F currencb value assets

1.417

900,000 800,171717 800.000 800.000 9017 .000 750.000 8L?i).OOO 650.000 600.000 60~1,000 800,000 500.000 500.000 i'017,OOO 500.000 450.000 500.000 550.000 296,000 300,000 280.000 190.000 150.300 1170,000 100,000

1

9017.000 78D,000 900,0017 7u0.000 800,171717 800.000 900.000 80U,000

830,000 800.000 8170.000 8011.000 700,000 700,000 700.000 600.000 550.000 60(7.000 700,000 4170.000 4017,OOLl 400.000 3017.000 300.000 300.000 20(?,000 200.000 200,000 200,000 150.000

aoo.ooo

SHARES Media s 1.1. I tic

TOTAL SHARES

BONDS Corporaie Bonds Val1-o Co.. 9.00% 11/15/13 Rhodia SA. 10.50%. 06/01/10 Clurirlalkin Indusrries. 8 005. 0:VWl.t LTI. Cable PLC. 8 756. 04/15/14 Victoria Acquisitiun 111 BV, 7.873%. 19/01/14 Eircom 1,unrli:lg. e 25%. 08/15/13 Oncris-Rrorkv,a) Glass C:onraixi- h e . . h.i5%, 12/01/14 Kronos lntcrnatiunal Inc.. 8.875%. 06/30/09 A~prupulsion Capi:al BV. 144.4. 9.625%. 10/01/1 3 Freseiiius .Llcdic;il Care C.epid Trust. 7.3758, 06/15/11 Warcrkird Wedgewood PLC, 144A. 9 87%. 12/01/10 Legrand SA, 11 00%. 02/15/13 Xerox Coqi . 9 75%. 01/15/0Y AER Ixcrriiiiiotid Finance Ltd.. 11.00%, 01/13/08 Alcatcl SA. 4.3756, 02/17/09 CM.4 CGM. 145:I. 9.875%, 05/15/13 General hlolors kccptarice Corp , 5 3755. 06lir6lll Calpine Canada Lncrg) Fina:ice. 8.3Ti'X. 10/15/08 TRW Auiomotive Inc.. 10 125%. 02/15/13 Remy Cointreau SA. 6 50% 07/01/10 Huntsman 1ntcrnatio;ial 1.I.C. 10 125% 07/01/09

TOTAL BONDS

TOlAL .lRANSFERABLE SECURITIES ADMITTED .IO AN OFFICIAL STOCK EXCHANGE 1.ISTING

TRAMFEILIBLE SECLKllltS DEAI .T PI O N AXOTHER MGLILYI'ED MARKET SHARES Media PTV Inc., A, 10 00%, p k .

TOTAL SHARES

BONDS Corpvralc Bonds Rockwod Spcclaliies Group Inc . 7 625%. 11/13/14 HCP Ciystal L1 5. Holdings, 10.375%. 06/15/14 JuhnsunDivc:sey 111c.. 9 627%. 05/15/12 Vrii Aero Engines h e 5 1 . 8.25%, 0+/01/14 Chcsapmk? Cor]), 7 008. 1UlSI14 Dex Media \Vest LLC. 9 875%, OW1 5/13 JSG Funding PLC. 7.75%. 04/0:/15

e w Holland Iiic . 144.4, 9.25%, 08/01/11 eld Foods Inc., 7 008. 08/01/11

ho\-clis lric,, 7.25%. 02/15/15 Flcxtrunics Inx-narional Ltd . 6 25%. llliS/14 llost I\larriotr LP. 6.375"A. 03/15/15 \Villiam Lvon Ilvrncs lnc , 7 F2i'X. 12/15/12 vanpard Health Holding Cu.. I I I.I.C. i).OO%, 10/01/1$ El Pax Curp , 7 875%. 06/15/12 1.1~1 1-elevision Corp , 6.50%, 05/1Y1.3 Inmarsat Fina:icc P I L . 7 625oh. 06/30/12 Cons;ellation Brands Inc . 8.125%. 01/15/12 Time \\:artier Telecoin Holdin Charier Coiiimunicauon5 t luld%gs I I C . Senior Di5c horc. 13.50% 01/15/11 The Llaniuwoc Co , Inc . 10 3T5% 05/15/1 1 lillicrl \Vasie h r t h Aineiica Inc , 6.30%. 11/15/10 L-3 Cominxnicatiun, Curp , 5.875% 01/15/15 Kern) Cvinireau SA, 5.2D%. 01/15/12 Qnesr C:apital Funding. 7.257$, 0211 511 1 (2west (.ommuriicatiCms Iniemational Inc.. 8.0090, 02/15/14 T I W Autoniori\c Inc , 0.3758, 02/15/13 Qwcs: Corp.. FRN. l44A. 8.875%. 03/15/12+ L-3 (kirnmunicaiiuns Corp , 6.1258. 07/15/13 1-3 Curnrnunicdiions Corp , b.l25%, 01/15/14 t-I uiiisman hiwmatioiial. 10.125%, 07/01/09

Inc , 9.2576, 02/15/14

GBR

L!SA FRA IRL

GAR K1.D IRL USA DEI; NLD 1:SA IHI. FRA C5.A GhS FR4 t,KA 1!PA LIS L:SA FRA (:SA L SA FR,\ GBK IRL

GHK

L j A USA

DEL l.!SA u 5'4

Lis[)

FLR EUR LC'K FVR ELR EUK tL!K E1!R tL!H EUR FUR EUR ELR LUK EL'R El!R EUK EUK ELR ELR LLR FI!R EUR F.UR EUR

l.!SD

80.125 0 17

80.125 0 17

985.503 884,000 848.001) 846.001) 828,003 823,125 81 2.000 692.250 687.000 65 1,000 648.009 605,000 59 5.000 590,625 517.500 516.375 449.033 407.000

3.2 1.000 291,900 223.251) lT2.125 99.250 81.000

341,880

2 08 1 86 1 79 1 78 1.75 I 7 1 171 1 46 1.45 1.37 13; 1 28 1.26 1 2 5 1 .09 1.09 0.95 0.86 0.72 O.68 0.62 0.47 0 36 0.21 0.17

13,915,824 29.37

13.91 5.824

13.995.949

1

1

29 37

29 54

0.00

0 00

91 1,250 9170.9GO 877,500 815.942 770.000 757.028

702,483 699,177 666,945 659.507 b57.854 634.714 627.689 598,763 552,562 525.622 488,639 480.994 435.343 442,000 327,274 322,3 1 6 305,500 238.637 235.848 183,885 180,579 166.943 166.116 156.375

~20.000

1.92 1 90 1.85 1 1 2 1 63 1 60 1 52 1 48 1.48 141 1 3 9 1 39 1 34 1.32 1.26 1.17 111 1 03 1 02 0 94 0 93 0.69 0.68 (7.64 0 50 0.50 0 .3Y 0.38 0.35 0.35 0 33

60

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in High Yield (Euro) Fund -


(Currency - E U R ) All securi t ies a re ord inary unless o therwise s l a t e d

Lumber ol oh of shares o r De,cription Cvu:llr). 1 rading hlarket net

face value. COdC currency value h5c15

200,000 100.0(717

900,000 9017,000 900,000 900.000 8DD.000 RL717.000 800.000 800.000 900.000 800.000 700.000 800.000 570,000 700.000 700.000 600,000 600 .000 500,000 600.000 500,000 600.000 400,000

Corporate Bonds (continued)

Allied Waste h r t h America Inc , B. 5 75% 02/15/11 Briiax Group PI.(:. Keg 5, 11,258, 05/15/11

1'54 C! 5 L) GBR FI'R

155,373 110.750

i) 33 0 23

TOTAL BONDS

TOrAL TRANSFERABLE SECURITIES DEA1.T IN OK ANOIHEK REGULATED MARKET

TRANSFERARI.E SFCL!RITIE5 NO1 AL)hlIl-IEL> TO .4k OFFICIAI.. STOCK EXClIAhGL LISI I lC ; I i O R DEALT 15 ON ANOTHEK WGC'L4JEL> MARKET BONDS Corporate Bonds SGL Carbon Luxenihourg %I, 144A H.50'?0, 02/01/12 Salilo Capital Intcrnatiunal SA, l-t.t.4. 9 625%. 05/15/13 Ceiitral European Media Fnlerprisrs Lid 144A. 8 25% 05/15/12 Lignthouse International Co , SA, 144A, 8 00%, 04/30/14 K\;aerner AS. 143A. 8 375%. 06/15/11 Kiwrdeep Groilp Ltd.. 144.4. 9.25'6, ~ W l ? / l 1 Culligan Finance Gorp RV, 144.4. 8.00%. i0/01/14 Codere Finance 54 . 134A, 8 25%. 06/15/15 f:ssdte I luldings Group XB. 14411, 7.627%. $311 j/l I Fa e Dain Intluarics SA. 1SSA. 7.30Yi 01/15/15 .I cftric, Cimrnunication NV. 9 001%. 12/13/13 Invcnsys FLC. 143.4. 9 87596, 03/15/11 Kaufman & Broad SA. 144A. 8 75%. OU/O1/09 Allegheny Fncrg! Suppl! Cu . LLC. 144A. 8 25%. 04/15/12 Kogers IVireles Coinniunicaiions Inc.. 7 25%. 12/15/12 Arhgh Glass Finance BV, 144A. 8,U75%. 07/01/13 D!iiegy Holdings Inc.. 134A. 10.1256, O T I l Y 1 3 Britax (;roup F1.C. 144A. 11.258, 05/15/11 C.htwpcake Energy COT , l+tl\. 6.377%. L76/1 >/I 5 Huntsman International I.1.C. 144.4. 7 50%. 01/01/15 Schefenackcr A(;, 9.50'K. 02/1 1/14 Calpiiie Coq i , 144A. 8.50%. 07/15/10

TOTAI. BONDS

TOTAI. TRANSkbR4BLE SECURITIES NOT ADMIl I tD TO AN OFFICIAL STOCK EXCHANGE LISTING NOR DEA1.T IN ON ANOTHER REGULATED MARKEI

LLX LCjX BMI.! IT.\

h 0 H IRL

N1.D t 5r

5WE GKC BEL GRR FR,\

EL'R ELR FUR E L R LUR E L R FI:K I U R El!R EUR El!R EUR FI!R USD I! 5 L1 ELR USD EUR I:SD EUR LUK USD

16.483.542 3 1 78

16.483.542 34.78

16.483.543 34.78

990,000 978.750 972 000 932 625 Y12 000 870.000 850 DO0 824.000 814,373 803.000 796:250 794.000 652,650 650.829 627,689 61 5 .000 562.81 2 553,750 510,746 508.02S 397.500 256.200

2 09 2.07 2.05 1.97 1.93 1.84 1 79 1 7 4 1 72 1 6 9 1 68 1.68 1.38 1.37 1.32 1 3 0 1.19 1.17 1 08 1 0 7 0 84 0.54

15.872.199 33 51

15.872.1 YY 33 51

15.872.199 33 51

TOTAL INVESTMENTS

+ Floating h i e s drt' iridic;rtrtl as at June 30, 2005

46.351.691 97.83

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Income Fund -


(Cur rency - USD) A l l s ecu r i t i e s a re o r d i n a r y unless otherwise s t a t e d

kumher 01 % u l hire5 ur Descriprion Counrr) Trading \I,irke: ne1

lace mlue code currency value assets

TIUNSFERWLL SLCLKI IILS AIJMITTFD TO AN OFFIClAL STOCK ENCHASLE LISTING SHARES Automobiles k.ord h h o r Cu C ~ I I : J ~ Tnisi 11. h 50%. pfd.. cvt (icncral 411710rs Coip . 6 25% p k . . c\-t

250,000 150.1J00

300.000 350.000

250.0L~0 100,060 50.i)i)O

117.600

3m,000

2su.000

4uo.000 250,000 250,01717 100.000

3.840

500 ,0017 25il,c)00 280.17(70 200.L~011 200.000 200,000 .32',000 200,000 100,000 150,000 100.000 1o0.000 200.000 100,000 200,000 200,000 75.000

125,000

:300.000 200,000 150,0017

42,600

100.000

1ofi.000 [email protected]

10,082.503 3.165,000

1.15 0.36

13.247.500 1.51

13,35Y 003 9.L47.003

1 52 1 .06

Chcmicdk DOH. Chemical C L ~ Lvnndell Chemical Co

22,606,003 2 5 8

Commercial Banks ldth 1 hird Rancorp Rank 01 America COT. Comcrica Inc.

1.18 0 52 0.33

117,302,500 3,563.737 2 .HY 0.0170

17.756.237

5.417.832

L 03

Commercial services & Supplies .Uicrl b';is:e Indusirws Inc , 6.25%. pfd , c\-t

Consumer Finance MBhA Corp

Diversified Financial Services ]P\lorgx) Chase 8 Cn

Diversified lelecommunicalion Services L~cllSuuih CO?].' SRC Communications lac.

Verimi C:oiiiinunicatioiis Inc \IC1 Inc.

M k T C0i-p

7.848.000

8,830.000 101

10.628.000 5.937.500 4,760.000 3.455.000

1.21 0.68 0 53 0.40 0.01 98:Y83

24.879.483 2.84

Elecrric Liiliiies Snuthem Co. Arnrrcri Cnrp Finnacle Wesi C a p i d Corp. Puhllr Serrice Enteqmse Group Inc Firs1 Energy Corp Cincrg? Cvrp k p c o Holdings Inc. P G k E Gorp. Duminivri Kcsources Inc DTE Energy Lo. PPL Curp. Consolidated Ediscin lrir Puget Eiicrgy Inc. Progress Energy Inc Xcel Energ) lric CcnterFoint EncrK Inc Encrgy F.ds1 Corp

17.335.000 1.3.H25.000 12.446.000 12.1 64.000 (3,622,000

7,508.000

T,015.500 5938,000 4.684.000 4,676,000 4.524,000 3,Y04.000

8.964.000 7.780.500

7.339.000

2.642.0017 2.173.500

1 9R I 5 8 1.42 1.39 1.10 1.02 0 89 0 86 0 e4 0 80 0.68 0.54 0.53 17.52 0.43 0.30 0 25

15 15

0.67

132.540.500

Food Pruducls Gcnrral M l l k l n c

Gas Uiiliiies NiSourcc Inc ONEOK Inc. Keybpin Cui-p.

L!5A 5.848.750

0 85 0 74 0 70

7.419.000 6.530.000 6,105.000

20.054.0t70 2.29

953,3@8 Insurance l-ra\-el<rs Prupt'ny Casualr) Cnrp

Media Dcx Lktiia Inc

hlelak & Mining Barrick Gold Corp. Souhrm Pen1 Copper COT

L!SA u. 11

0 28 2.441 0110

2.503.000 1.752.156

CAN l ! S A

0.21) 0 20

4.275.156 0 49

62



(Cur rency - USD) A l l secur i t ies a re o r d i n a r y unless otherwise s ta ted

\larkel value

%J o l ne1

asscis

1 2 6 0 96 0.81 0.73 0.57 0.33

Oil & Gas ?\nicrican Electric t'uwer Cu , Inc Chevron Corp R q d l Du1c-h Petruleurn Cu . N Y shs UP PLC, ADR Canadiai Oil Sands .I ru5t Amos Energy Gorp

300.000 150,000 109.200 100.000 67,700

100,000

800,000 800.000 500.1700 150.000 150,000

~00,000 125,000 150.000

100.000

250.000 150.000 100.000

40.000

2517

119,000

100.000

13.000

200.000

8.500

8D.000

100.t7t7t7

20.000.000 15,000,000 1 6.00@,000 1 5.000.000 10.000.000 10,870.000 10,000,000 10.00@,000 10.00t7,000 9.000,000 8.0017.000

10,384.000 8,000.OL70

USA li5D 11.061.000 [:SA USD 8.388.000 RLD 1!SP 7,087,080 GER uju 6,238.000 Lib. CAD +.978,998 USA um 2.880.000

40.633.078 4.64

Pharmaceuticals Merck B Co , lrir P h x r lnc. Rrisrol-Myers kluibb Co Schenng-Plough C.orp.. 600%, pId , CYL \k.)ieth

[!SI\ 1:SD 24.6.tO.000 LISD 22,064.000

[;SA L!SD 12,490.000 LSA 1!SD 7.6+7.000 L'5.4 USD 6.679.000

2 82 2 52 1.43 0.87 0.76

8 40

1.17 (7.66 0.42

73.516.000

10,295.000 5,745,000 3.664.500

Real Estate Glenburough kaltv Trust Inc De\.elopers.Di\ersificrl Realt) Corp M r u r hdging Tnist Inc.. I\. 7 80%. plk, ~ v t

LSD C!SD USD

19.704.500 2.25

Thrills &r Mortgage Finance 1:reddic Mac

.rOTAL SHARES

TOlAL .IRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TRhliSFEMBLE SEC1!RITIF.S LICALT Ih

SL4RES Capital Markcis Goldman Sachs Group iri tu Applied hlatenals Inc , 7 .35%, pld . cvt Lehinan Brother, Hilldings Inc. i i i t ~ I.)ondell Chrrnical. 8.00%. pld.. c\ I Mlo-gan Sian1t.y iniu Uiogen ldec lnc.. 8 50%. pld , cvt.

ON AK01 I ILK IEGULATED MiiRKET

ISD 6.523.000 0 75

407.054.424 46.52

46 52 407,034,424

4.151.750 4,150.500 3.387.500

0.48 0.47 0 39

1 34 11,689,750

9,979,000

14,276,125

Cummcrcial Services & Supplies Alli<rl Waste Indusirics In<, , 1). 6.25%. pfd , cvt

Consumer Finance Fmnir Mac, 5 3754;. pfd , cvi

Electric Utilities (315 tr icrp Trust I , 7.75%. pfd I c \ r

Electronic Equipment & Instruments Lehman Brothers Holdings lric into Solectron Corp . 6,50%. pfd , c \ t

1.14

2 77

0.65 5,652,500

1,901,500 0 17

Oil & Gas FI Paso Corp . 4.99%. pld.. C \ I , ItSA 13,839,381 1 58

5.300.000 0 61 Insurance hletlik Inc . 6 :375%, pld , c \ t

Melals & Mining Freepon \k%lciran Lopper k Grrld Inc . 5 50%. pfd.. cvt

Oil & Gas Chfsapcake L n e r p COT.. i.i7t7%, pki , CVL , 144.4

Real Estaie I .exirigton Corporate Frnpci;ies 1.riisl. 6.508. pfd , c\ I

TOTAL SHARES

BONDS Corporate Bonds General Motors Accepi.irice Corp.. 6.875'X. 09/15/;1 Tenct I-iealthcare COT , 6 375'x.. 12/01/11 Calpine Canada Lnergy Finance, 8 508. 03/01/08 Charter Communications Holdings 1 I C. 9 92%. 04/01/1 1 L1ynt.p' Holdings lnc., 8.756. 02/i5/12 Dynegj Holdings Inc.. 6 875%. 0+/01/11 Ford Motor Credii Cu.. 7 375% 172/0Ull Conexani Eystems liic., 4.00% 02/01/Oi General Motors Acccprance Curp , 6 75%. 12/01/14 Six Flags lric , c\-t., 4.50%. 03/13/15 Calpine COT , CYI , 5uh. Nute, 7 75%. 0(i/(71/15 Nalco Finmce Holdings. Senlor Nvie. 0.0D'X. 02/01/14 Qwcst Coniiiiuiiicdlirln.c~iii~r~s ltiternational Inc , 8.00%. 02/15/14

7.869.937 0.90

1 .0J

0.59

9,150.000

5,145,000

94,4113,196 ~

10.79

18.484.340 14,362.500 1 l.h00,000 11.025.0@0 10.950.000 1@,788.375 9.751.950 9.350.000 8,961.700 8.853.750 8.240.0t70 7,723,100 7.610.000

2.1 1 1.64 1.33 1 26 1 2 5 1.23 1.11 1.117 102 1 0 1 0.94 0.88 0 87

63



(Currency - USD) Al l securi t ies are ordinary unless o therwise s ta ted

tiumber ol shares CY Descriptinn

lace value Lciuntp 1r;irlirig

code currency

% of Markct net

v;rluc assets

n.ooo.ooo 7,500.000 7.000,000 7.000.000

h.500,030 5,000.1?00 5.000.000 'j,l0(7.000 5.000,000 s.000.0170 5,000.0Oi! 5.,700.0170 .t,500.000 s ,01717~000 5.000,0i713 4.51717,000 5.030.000 4.800.171717 6.1700.000 .t.300,000 5.300.000 5.2i)5.000 5.000.000 5,500.171717 .t,000.000 3,i0(7~000 3.200,000 3,500,0170 4.000.000 3.000.000 3,500.000 3.200.000 3.ooo.000 2.500.000 2,71717,000 2,200.003 2,300.000 2,500.000 1 ,500,0(30 2.20(7,01)0 2.500.000 1.2YY.YYl

1 2,000

n.3oo.uoi,

8.808.087 8.742.428 1,669.321

886.582

7h9 .I 15 (12.5116.640)

x 3.5 36

10,000.000

Corporate Ronds (co:iii:iued! Allied \Vaste hvrth .hit.rica Inc.. 6.125%. 02/15/14 \ u r d Net\*orks Cnq'.. 4.234. 09/01/08 Qwesl Cdpilal Funding. 7 00% 08/03/09 Qwest Capital Funding. 7.25%. 0211 511 1 Charter CcirnrriuniLauons Holding5 L L C 10 75%, l0/01/09 Allied \Vdste Yorth Amcnca Inc.. 6 50%. ll/i5/10

Menstar HospitalilL Corp . 9 125'3, 01/15/11 El Pasu Lricrg). 6 E?&, 05/15/09 Tcncl Healthcare Corp . 7 3758. 02/01/13

1:I Paso Corp.. 7.75%. 01/13/32 General hluturs Acceptmcc Coip.. 7.758. 01/19/10 Calilomia State G.0 , 5 25%, 11/01/27 TXV Lurp.. 5 53%. 1111 5/14 Time b'arnei- I.lcrurn I-loldlngs Inc.. 9 258. 02/15/14 El P a w Production Holdings. 7.758. 06/01/13 Case Yea Hollaiid lac.. 6.30% 06/01/09 Cablevisiuri S)at.ms Cor],.. B. 8 OD%, 04/15/12 johnwriL)i\ersey Holdings lnc., Senior Lltsc. Nuie. 0.0OX. 05/15/13 HealthSouth Corp., 7 625%. 06/01/12 Ford Motor Co., 7 45% 07/16/31

R h ~ ~ l i a 51%. 10 258. 06/01/10

- r x ~01-p.. 6 i ~ ; 5 / 3 +

Fnron Fhamaceuticalj lric , + . S O % , 07/01/08 Lowlis Inc.. 7.25%. 02/15/15 I) .aLild lnc.. 7.25%, 03/15/15 Allied Waste hunh America I n . . T.375%. 04/15/14 Charter Coiiiinuiiic;iuoris 1 Iddirigs LLC. 11.75%. 01/15/10 Ilvw Uarrioii 1.P. T.125%, l l /o l / l3 Hanowr Compressur CCI . 0.00%. 03/31/07 I laririwr Comprewx Co., 4.75%. 03/15/08 In\ens\s FLC. 155A. 9 875%. 03/15/11 Callon Prtrvlcurn Cu., 9,75?0, 12/08/10 Lucen: Technologies, 6.45%, 03/15/29 Calilomia 5r (;.<I., 5 00%. 02/01/33 Sanmiiia-SCl Curp.. 6.75%. 03/01/13 Dcx Media lric , Senior Disc. Lote. L1.00%. 11/15/13 .4quila Inc , 13 875%. 07/01/12

Calpine CUT, 8.625%. 08/15/10 A r n r r ~ ~ m Airlines Inc . Y 71%. 01/02/07 Asia Pulp Gr t"iper Co.. Lrd . 12.088, 02/15/03 *

y w c s t COT , (i 875%. 09/15/33

Government Bonds FHLMC. 5 do%, 02/01/34 GhlLA. SF. 5.00% 03/15/34 FHLMC, 5.00% 08/01/33 FHLMC, 5.00?0. 11/01/33 FHLMC, 5 00%. iU01/33 l~IILh,~C. 5 00'h. 11/01/33 FHLW. 5 00%, 07/0i/33

TOTAL BONDS

TOTAL IKANSFEMBLE SECURII I t 5 DEALT IN ON ANOTHER REGLI ATED MARKET

Corporate Bonds Calpine COT, l~si\. R.50'h. 07/15/10

TOTAL BONDS

TOTAL .IMNSFERAELE SECURITIES NOT ADMITTED TO AN OFFICIAL SINK EXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKET

TOTAL INVESTMENTS

+ .These Corporate Bonds are currcntl> in d e l d t

L!SA

7,470.ODO 7,031,250 6.877.500 6.737.503 6,353,250 6,335.0017 5.387.50i) 5.275,000 5.125.500 4.962.500 4,933.613 4.900.000 4,892,31313 4,874,625 4.~74.280 4.n3o.ooo 4.826.250 4.825.000 4.728.000 4.297.500 3,192,500 4,184.760 3.81 2,400 3.T37.500 .3.645.000 3,550,000 3,530.625 3.304.000 3,255,000 3 , l (i0.000 3.142.500 3.097.500

2.880.000 2.606.250 2,430.000 2.317.414 2.208,000 2.025 B C d 1.972,SCO 1,916,750 1,693.750 1.219.593

135

3.0nn.000

o.n5 0 80 0 79 0.77 0.74 0.74 0.62 0.60 0.59 0.57 0 56 0 56 0.56 0.56 0.56 (7. 5 1) 55 0 55 0 54 0.49 0 48 0.48 0 44 0.43 0 32 0.41 0,40 0 38 0.37 0 36 0.36 0.35 (7.35 0.33 0 30 0 28 0 26 0 25 0.23 17.23 0.22 0 19 0.14 0 OD

314.42A.ii7

8 . n 2 4 , n ~

nnn.2~3

8.823.537 1,672.504

785.070 770.551

(1 2 .Y 20.670)

8.844.1 39

323,272,696

417.675.892

7.750.000

35.93

1 0 1 101 0 IY 0 10 0.09 0 09

(1 48)

1.01

36 94

57.73

0.89

7.750.000 0 89

7.750 000 0.89

832,480,3:6 95 14

64

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Technology Fund -


(Cur rency - USD) A l l secur i t ies are ord inary unless otherwise s t a t ed

3c. 01

L O d F currency value as.scts County Trading Markel nt'r

fiumber uf shares nr

h c e value

37,900

32.800

216.700 124.200 80.500

lY8.800

158,200 280,400 84.000 617,400

90.200 12 5.400 99.100

1 1 1.100 104,200

4q.300

12!).670 13.900

119.500 23.900 33.700 39,500 46,900

88.300 15 3.000 77.900 8h.700

1110,600 38.100 97.40d 22.900 74.200

49.700

24,000 6.900

144 .ROO

45.000 52.400 50,000 24.8017

i22.800

0.78

Commercial Services & Supplies L'ltimate Software Groiq? Inc

Communications Equipment Cisco Systems Inc Avocent Corp juniper Yetwork Inc. Micmiunc Inc

0 32

2 18 1 95 1.22 0.60

6 25

3.75 2 31 1 .43 1.33

10 411.697

6,250.482 3,844,284 2,374.680 2,223,324

Computers & Peripherals Dell lnc FIfC Corp. Network Appliancc Inc. Applc Cumputcr Inc

USD IJSD USD US13

14.692,770 8.82

Diversified Telecommunication Senices Qu;ilcomm Inc. Arntncan Tower Corp.. A ViaSnt Inc hukia COT, ADR Corning Inc

USD C:SD LSD USD USD

1.79 1.58 1 2 1 1.11 1.04

6.73

0 99

2.70 2.45 2.06 0 69 0,64 0 39 a.34

9.27

. - . - .

11.2OR.621

1.646.631 Health Care Equipment & Supplies \Va:ers C:oq>.

Internet Software & Services Yahoo! Inc

VeriSigi Inc. M/ebsense Inc. Digilal Rhcr Iric. Openwave Systems Inc Righrnuw Iechnologies Inc.

GUO$ I n . . A

u5.4 LSD

4,493,065 4 088,685 3 436 820 1.148 395 1 ,069.97i

647.800 563,738

15,448,478

IT Services Cognizam 1echnuIug)- 5oluuons Corp , A Ncustar Inc., A Alliance nara Systems Caip. Paychex Inc. Ainilocs 1 . i d Global Payments Inc. Kanhav Inicmarional lric Itilu,y; .Technologies Ltd , .4DR RSA Securiry lnc.

4,161,579 3.9 16.800 3.1 59.623 2.82 1 ,2 18

2,583.180 2,270,914 1.771.063

851,816

2,658.858

U SD I'SU USD

I!SD L!Sll USD I:SD USD

n r )

2 50 2 35 1.Y0 1.69 1.60 I 5 5 1 35 1 07 0 51

14.52

1 6 9

0.48 0.31

0.79

2.02 1.56 1.32 1.05 0 hh 0 65

24,178.052

Leisure Equipment & Producls Electronic An, Inc

Media kM Sawlhte Radio Holdings lric . A Getty linages Inc

[?SD 2 813 517

807.840 512.394

1.320.234

3.369.496 2,603,360 2.191.930 1,743.348 1.1O3.000 1,081,528

Office Electronics 'I ekxonix Inc. Natinnal Insirurnenis Cuip Ruckwcll Automation Inc r;cieiitihc-Arlarira h c Dolby Laboratories Inc , A Dionex Curp

L!SA USA L?SA L5A L'S.4 (!!,A

12.092.682 7.26

65

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Technology Fund -


(Currency - USD) A l l secur i t ies arc ordinary unless o therwise s ta ted

Number of B or sh;i:t.s o r ncscription Cuunlr\. .Trading Market net

I,a(:c value (ode currency value assets

120.700 239,2170 116,5017 114.600 11 4.800 129.2C)C) 159.500 136.i00 83.400 40.800

112.800 36.600

328,800 27.500

1P0.100 66,500 69,200 83.6U0 63.900 87,700 55,500 9.000 817,000 42.500 31.7170 47,900

1 1 3800

7.17i.000 4.0T5.000 1,397,000 1.015.000

Semiconductors & Serniconduclur Equipment .hilog De\ icw Inc. hitel-si1 Coip.. A Linear ~~echnulugy Corp Microchip Technology Inc FomiFactur Inc A h a Corp E a r Corp ,%pplied hwr ia l s Inc Silicun Laboratories Inc KLA-Tencor Cor17 Actel Coq3. kkmt.11 .Tedinrrlrrgy Group Ltd Zilog Inc Power hilegrations Inc.

4.503.317 4.489.784 4,274.385 3.394.452 3.033.016 2.560.744 2.374.955 2.21 1,806 2.189.914 1.782,Wd 1.567.920 1,392,264 1,387.536

593,175

35.752,228

4.47.3.684 2,879.450 2.572.856 2 3 9 2,632 2.181346 2,154.498 2,128.980

2.094.400 1,460.125 1,118,565

703.1 72 641.1'28

26.913.396

2,108.7eo

. 1 0 T A l . SHARES

.IOTAl. TRANSFERABLE SECUKIHES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TRAKSFEL~BLE SECCKII UEAI .T IN O N ANOIk iLK iWC;L:I,\TFD MARKEI- BONDS Securilies Maturing Within One Yrat U 5 Irt.asury Rill. 0 t70'L. 08/11/05 I! 5. l'reasup- Bill. 0.008. 08/04/05 U.1; Ircasury UiII. 0.00%. 07/07/05 I.'.5. Treasur). Bill. 0.00%, 07/13/07

TOTAL BONDS

TOTAL TRANSFEKABI-E SECURITIES DEAL^ IN ON ANOTHER REGULATED MARKET

TOTAL INVESTMENTS

2 70 2 69 2 57 2.04 182 1.54 1 42 1.33 131 1 07 0 ,g t 0 84 (7 83 0 36

21 46

2.68 173 1 54 1.4s 1.31 1.29 1.28 1.27 I 26 0 88 0.67 0.42 0 39

16.16

158.31 9.22R 95 04

158.319.228 95 04

IS4 USA USA USA

USD L: 5 11 USD L!SD

5,157.870 4.063.883 1.394.360 1 ,013,962

11.630.053

3 09 2.4s 0.84 0.61

6.98

11.630.077 6 Y8

11.630.055

169,949,283

6.98

102.02

66

FRANKLIN TEMPLETON INVESTMENT FUNDS - F r a n k l i n U.S. Equity Fund -


(Cur rency - LJSD) A l l secur i t ies a r e ordinary unless otherwise s ta ted

Number or ‘6 of shares or nescrlpriun c a:\n1n Trading Market ne1

face \.due r-nde current)- value 3sscts

IK4NSFERABLE SFCI!RI’lILS ADMITTED TO A N OFFICIAL STOCK FSCIL-ZNGE L I T I h G SHARES Aerospace & Defence United Tcchnologirs Curp l!SA 1 .oc,khccd Martin Coip. L!SA

308.800 187.6017

362.300 73.5017

843,600

347,400

338,100 2Y2.800 110.780

380,670 672.150 135.500

400.0017

155,0(70 535,100

444.700 229.800

604.800 155,200

361.900 265.900 126,550 220.500

1.402.200

3YZ,10@ 186.600

23H.400 190.200

352,600

923.470 413.600

06.500 270,300 2-ts.000

C!SD U l l

15,856,880 12.169.612

1.24 0 96

28,026.492 2 20

7.366.000 5,954,233

0 58 0 46

Air Freight & Logistics EGL Inc F d C h &rp.

I!FA c! sz,

USD LSD

13.320.235 1.04

11,771.338 0 92

6,322,680 0.50 USD

1 2 5 0 96 0.54

Beverages Anheuser-Busch Cos . Inc. Coca-Cola Co Molson Cuurs Brewing (lo , B

15.927.573 12,224.400 6,868,360

35,018,333 2 75

1 80 0 73 0 37

Biotechnology Amgen Inc. .4ngiowch Pharmaceuticals Inc B i o p I d e ~ Inc

USD L! 5 L) I:sD

13,014,099 9 315 999 4,667.975

36.998 073 2.90

1 4 5 1.26 0.49

Capital Markets Citigruup Inc. Federaicd Investors hic , R \Vashington Muirial Iric

USD USD 1!SD

18.492,000

6,306,970 16,061 352

40.860.302 3.20

Chemicals I .ymdcl l Chemical Co. Catot Cort’ llw Chemical CO. Solutia Inc

11,748,974 7.583 400 6 911 056

l!SD USD I:Sn C:SD

0 Y2 0.60 0.54 0.03

2 09

1.17 0.95 0 61 0.50

‘35i808

26,597,236

14,91.3.899 12.127,69Y 7,792.949 6,345,990

Commercial Banks Fifth Thlrrl Uancorp Bank 0 1 America Corp \Veils Fargo CL. Co. Bank of Liea Yurk Co . 11ic

41,180,537 3 23

Commercial Services & Supplies Allied Wasre lndustnes lnc.

Cornmunicalions Equipment C.iscu Systems Inc. A\weiit Corp

11.1 19,446 0.87 CSD

LSD USD

7.$93,03 1 4,877.724

0 39 0.38

0 97 12,370,735

Computers & Peripherals Lcxmark Inrcmd1ivrial Inc , A Dcll 1 n c ,

L!SD L!5D

15,455.472 7.514.802

1.21 0.59

1.80

17.72

22,970.274

Consumer Finance MBNh Corp

Diversified Financial Services CapitalSource Inc JPhlorgan Chase B Co

9.224.016

18.127.716 14.608.352

L!5D l.;m

1 -tz 1 1 5

2.57 32.736.368

Diversified Telecommunication Services Venzon Comtnunications Inc, Qualcumin Inc. BcllSouh Curp.

10.589.575 8,922.h03 6.509.650

0.83 0.70 0 51

26.021.828 2.04

67

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Equi ty Fund -


(Currency - USD) A l l securi t ies a re ordinary unless otherwise s t a t ed

(h; :le[

assets

0 92

0.68 0 50 0 40

Market \-slut.

Food 6r Svrples Retailing SYSCO c o q 7 324.400

2SR.11717 162.800 ZjY.000

500.000

912.9017

2 19. i 00 .2+8.200 114,600 177,1(70 1175.1 00 472.700

200.700

509.800 133.200 263,800

57.300 318.R00 230,100 508,7017 276,800 193.200 305,100

2.140

557.600 688.300 253,300 127,000 205.300

179.500

51 5.400 237.+00 365.624 224.SOO 125.600

280,000 353.900

$42.300 7C5.700 $61.300 +36.100

11.750.036

8.753.044 6.324,780 5.130.790

Food Products Dean t u c i d s Inc. L':iiher FLC. ADK Sara Lee C0y-p

L0.19R.614 1.58

Oil & Gas XiSuilrcc Inc

I3calth Care Equipment & Supplies Rostur~ Scienlilic Corp.

Health Care Providers & Senices Triad Hospitals l r i i Hcahh hci In.. 11 Wellpoint Inc

;\merisnui-cccRergcn Curp Tcncr I Imlihcarc Corp.

bkKt'5SWl Ctlql.

0 97

25.458.300 2.03

1 1,971,624 9.47 1.312 7,980.744 7.932,309 7,267,665 5,785.8$3

0.94 0.74 0.63 0.62 0 5: 0 15

50.4OY.502 3.Y5

Household Products rroctcr Gr Gamble ( lo

Industrial Conglomerates Gcncral Flccrric Cu 3M Cu. .I\cu hiierna;innal Ltd.

10,386,929 0 83

17,664,770

7.702 .Y 60 9.630.3617

1.39 0.75 0 60

2.74

1 43 1 clH 1.05 1171 0 97 0 90 0.83 0.47

7 75

1 32 1 2 2 1 02 0.74 17h5

34.YY7.890

18.207.210 13,797,664 13.368.810 12.869.023 12.43Y.392 11.4S8.692 10.560.732

5 .Y 56.69 0

9H.hS4.213

Insurance \ k s h k McLennan Cris.. lnc AFMC l ~ i c Arnuicaii 1nternatiori;il Group Inc Old Ktpibl ic hiwmaaonal Curp. Hrww B Rromm Inc. MEIA Inc Mnnt clitr KF Holdings Ltd Rcrk$k'Hathaway Inc , U

18,143.304 15.603.ihl 1 L ,933.630

Y 423,400 R.24H.770

IT Services

Aceenlure h d . 2 1

Affiliated Compiilrr >er\ices Iiic . A In~crriarional Rusintsb h c h i n e s Corp First Data Curp.

Pa>chex Inc. I'SA RML [!SA USA USA

64.363.865 5 05

10,161.49i Leisure Equipment & Producls Elt.c1mnic Arts Inc

Media L)o\v Jones k Co , 1;i~ (;annett Cu . lnc. L!ni\isinn Coininiinicatioiis Inc , A Viacoin Inc.. R Clear Chnnncl I:nminunicatlons lnc

0 80

143 1.33 0 79 0.56 0 31

18.270.9.30 16,886,262 10.072.941 7,188,590 3,884.808

56,303.431

14,j7 1,200 9,289.2 15

3 42

1.14 0 73

Merdls & Mining Peabody Energ) Corp. Alcu;i lric

USA USA

23.860.415 1.8i

26.1 38.800 16 912,800 12 039.930 7,230 538

Multi-Line Retail \%ii-\ lx Stores Inc. Dollar I-rm 5torcs Inc Family L)ullar Stnrcs Inc. 1.rt.d s Inc.

2 0s 1 33 0 t)5 0 57

4 89 62.322.128

68

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Equity Fund -


(Cur rency - USD) A l l securi t ies a r e o rd ina ry unless o the rwise s ta ted

humher or shares 01

f x e \ - a h

528.600 280.000 21717,000 203,100

1,003,850 501.200 307.700 1Y0.900 227,600 158.100

882,900 461.500 448,200

1 ,009 .6017 570,800

374.000 45 1.840 152.500 256.7017 2i.000

406,300 938.100 265.200 205.498

153.000

143,000

61.000

Oil 6r Gas ExrnnMobil C.urp. Lkwn Energy Cnrp K u y i l Dutch Petroleum CL> , L.Y. stis American Eleciric P c i w r Cu.. Inc

Pharmaceuticals Pfizer Iric. \le-ck B Co . l t ic Wyeth Johnson br Juhnson Forest Lahnrdories Inc. HI Lilly 6r Co.

Semiconductors & Semiconductor Equipment Intel Corli. Inwrsil COT . A Applied Maicrials lric.

U5D 30,378,642 L!SD 14,190,400 I'5D 12 980,000 C:SD 7,488,291

2.38 1 1 1 102 0 5Y

65.037..3.39 5 10

27,686.183 15,436,960 13,692,690 12.408,500 8,842,260 8,807.751

8h,874.304

USD 23,008.374 m> 8,662,355 USD 7.251.876

2.17 1.21 1 08 0 97 0 h9 0.69

6.81

1 817 0 68 1757

38.922.605 3.05

Software Microsoh Corp S)maiitec Coqi

C:SD USD

25,078,464 12,409.192

1 97 0.97

37,487.h56 2.94

Specially Revail Tuesday Morning Curp Cos[ Plus Inc L0w-e75 cos.. Inc

os5 Sores Inc. Gyniboree Coq> R ..

L5.4

11,788,480 11.268.890 8,878,550 7.421.197

341.500 .-

39.698.617

Thrifts &t Morlgage Finance Freddie Mac Dora1 Findncial Curp Faniiie Mac Coiirnrynide Financial Cwp.

26.509.472 15.516.1 73 15.487.680 7,934,278

Tobacco .4lmia Group hic.

TOTAL SHARES

TOlAL TRANSFERABI-E SECLRITIES ADMII I.EU TO AN OFFICIAI. S.I-OCK EXCHANGE LISTING

I K;\hSFERABLE SECURI l.lt5 L I N T 1K OL ANOTHFK MC;C:MTED hlARKF1 SHAKES Internet S o h a r e 6r Services R a d v t w 5oItwai-e Lid

Pharmaceuticals Rociie klukiing ,4L, ADR

TOlAL SHARES

TOl-AL TRANSFERABLE SECURITIES DEALI- IN ON ANOTHER REGULATED MARKET

TOTAL INVESTMENTS

0 92 0 88 0 70 0 58 0 0 3

3 11

2 08 I L L 1 2 1 0 b2

65.447.604 5.13

~15.4 LSD 9,892,9817 O . i 8

us.4

CI lk

LSD

L!W

1,179 ,300,746 92.48

92 48

23.881

.3.843.000

3.866.88 1

3.866.881

0 00

0 30

0 30

0.30

1,183,167.427 92.78

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Government Fund -


(Cur rency - USD) A l l securi i ies a re o rd ina ry unless o therwise s t a t ed

I K.IUSFFRX3LE SECERIIIES DtALJ Ili OK :WOTHER REGCIJAI LL3 MUIRKFT BONDS

341.33 9.697 227.1777.411 19i.083.788 149,725,116 137,298.674 Q8.748.729 81.1 39.954 29.867.192 26,261,996 21,798.736 10,992.787 4,886,338 4.032.826 3.357.641 2,379307 1,791.403 1.81 1.478

747.118

183,012 172,308 149,225 lOh.998 96.8T5

67.726 44,834 38.383 28.805 10,821

25a.316

80.321

Govcrnmcnt Bonds GNbM, 5 50% ll!i 3/28 - 01/15/.35 G>!vl.L 6 00%. 10/15/23 - 01/15/34 (ili!vLl 11. 5 00% 09/L0/33 - 01/20/34 G h W i . 6.50%. 07/15/23 - U8/15/34 GNMA IT. 5 50%. 05/15/34 - 06R0/3i (;N\lhL4. :.cW%, 10/1.5/~39 - 03/20/33 C;NW,, 5 30%, 07/ij/33 - 11/15/34 GXl1.4 11, h.170'%, OhlZ0/34 - llR0/34 (&\LA. 7 50% Ol/lS/17 - !0/20/32 GhklA. 8 00%. 117/15/16 - 07/20/31 (iNbL4. 8.50% 05/15/16 -- 0?/20/2Y GNMA 11, 7.Oc7X. Oi/20/26 - 12/15/30 GS\lA, 9 00%. 93/15/10 - 03/15/25 GhMA 1 1 , 6.70'L. 0YI2LlIZ6 - 07/20/31 GNSt.1. !0.00%, 10/15/11 - 03/17/25 GNkIA, 9.50%. 12/20/15 - 12/15/25 (;N?VL4 11, 8.00%. 03/20/17 - X'20/30

( i K r n , 8 625%. 10/17/18 C;Pi%lA 10.53%. 12/15/15 - 04/15/25 GNMA. 11.008. 07/15/14 - owl 7/21 (;NIL+ 11, 8.50%, 11/20/21 - 3/2Ll/ZL GNbt4, 8.30%. 07/15/17 GN\1A. 7 75%. 03/15/17 - 06/15/30 (ai\W, 8 25%. 0YlYl7 LNhM. 7.95%. 01/15/21 CYMA, 6.505uX.. 02/15/29 GX.Lt-2, 7,8090, 02/1i/20 (X\Ll 11. 9.50%. 07/20/18 - 04/217/25 GI\LIA, 11 50'b. C7/15/15

G X L L ~ 11, 7 . m . 09/20/16 - 07r20r30

USA l!SA USA LS.4 L:SA l!S.+ C!SA [:SA K . 4 c: SA

355,204,614 234,518,982 192.267.82Y 156.417.722

110,17917,538 104,350,669 81,904,861 30.T72.510 28.101.702 23,572,696 12.007.960 5,173,301 4.43 1 .UT4 3.49T,618 2,b96.251 1.985.751 1,951,681 800.80i) 280.2517 208.842 192 720 163.693 116.348 103,112 87.241 73 263 46.913 41,386 31.999 12,188

23.93 16.50 13 53 11.01 9 86 7 34 5 76 216 198 1 66 13.84 0 36 0 31 0.25 0 19 0.14 0.14 0 Oh 0 82 0.01 0 01 0.01 0.01 0.01 0 01 0 01 0 00 0 00 0.00 0.00

TOTAL BONDS

TOTAL TRANSFERABLE SECURITIES DEA1.T IN ON ANOTHER REGULATED MARKET

TOTAL INVESTMENTS

1,381,085,514 97 17

1.381.085.514 97.i7

1,381 ,O8.?.514

1.381,085.513

97 17

97 17

70

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. G r o w t h Fund -


(Cur rency - USD) Al l secur i t ies a r c o rd ina ry unless o therwise s ta ted

fiunihcr of shares or Dcsn'ipiion

f X F \.dUT

(:ou~ltl)' Trdding i C l d t . currency

TRAMFFRAi3.L StCL!KITIE5 ADMITTED TO A I 01 I,ICIAL HOCK ENCHASGE LlFTINL SHAKES Aerospace & Defenr-r

L-3 romi~iiiniciiiiciris I luldings Inc. Lnitccl Technologies Coip. LS.4 10.680

3.050

5,570 3.310 5.350

30.261)

2.560

9 ,380

1,860

15.620

6,280 5,270

3.790 10,ilO

27.450

11.320 30,290

11,210 2 i .080

5,530

15.260

9.650 4.020

20.500 7,620 2.720

10.640 11.660 2,830

5,380 3.960

L!SD L!SL)

548 ,318 233.569

1.94 0.R2

2.76 781,987

314. 174 268,143 266.48$

Air Freight & 1.ogistics C F. Rohiiison Worldnidt. lnc

Fxpedirors Inrernauoiial of \Vashingron In< Fcdcx C U T .

1 1 4 0 05 0.94

RSR.801 3.03

560.822 1.98 Airlines ~outhwest !\lrlillFS CO

Beverages PepsiCo 1:ic

Biotechnology A m g t ~ ~ Inc

Capital Markets Blackrock Inc.

Chemicals L>-ondell C:heinicnl Co

Commercial Banks G d e n West Financial Coq1 Wells Fargrr B (30

L!SA

138.061 L!5D 0 39

2.00 567.115 us.4 I!SD

149,637 L!5A LSD 0 53

412.6RO L! 5 D 1 ..t6

I 4 3 1 1 4

u 5'1 L!FA

USD LSD

404.306 324,527

728.833

296,454 262,434

2.57

Commercial Services 6r Supplics Apollo Group In< , A Kubtm I lall lntcmational Inc

G5.4 1: S A

LSD 1:SD

1 04 0.93

558,888 1.97

524.569 185 Communications Equipment Cisco 5 p m s lnc

Computers 6r Peripherals Dell lnc EhlL Coq)

L'5'4 L'SD

451,204 415.276

1 .j9 1.47

I:SD USD

866.480 3 06

Diversified Telecommunication Services Qualcomin Inc Kokla Corp , ADR Allrel Corp

1.31 1 24 1.21

L!SA Flfi L!FA

370,042 350,771 344.409

1.065.222

i52.299

3 76

1.95 Food 6r Staples Retailing SYSCO C.orp. L!S.4 LSD

Food Products B u ! ~ ~ F 1 . d Genua1 41111s lnc,

L!SD 1:SD

2 16 0 66

61 1.810 188.096

799 ,906 2.82

Health Care Equipment & Supplies Biwon Scienutic C o y . Larian hledical ~ysletns Inc Z1m:ner Huldings Inc.

553,500 284.455 207.182

1 9 5 1 0 1 O . i 3

1.045.1 37 3 69

Health Care Providers & Services Wellpciint lnc. Cdrunark RY Inc. HCA 1 1 1 ~

740.970 5 19.103 160,376

2 61 1 8 3 0 57

1.420.449 5 01

Hotels, Restaurants & 1.risure Inicrnauunal Game Technology Carnival Corp

L!5A L!SA

l 3 D L!5D

432,947 216.018

64R.965

1.53 0 76

2 29

71

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Growth Fund -


(Currency - USD) A l l securi t ies a r e o r d i n a r y unless otherwise s t a t ed

Household Products Pi-octer & Grrnhle C.o

Industrial Cunglornerales 3M co Two 1nternatioii;il L i d hiettlerduleclu 1riir:nauonal Inc Dandier Corp.

h.980

6.330 15.130 5.910 5,170

182 8.910 6.420 9,870

1,390 8.0i 0 5.530

15.220 9.340 2980

6.903

16.300 14.680 10,180

2,400

6,420 6,700

20.530

8,600

8.355 10,853 15,880 5.720 2.460

18.890 26.9817 10.420 6.630 7.173 9.390

ll ,h7~! 17.1 10 3.250 3,8717

USA C'jD 368.195 1.30

457.659 441.796 275.287 270.598

1 62 156 0 97 0.95

USA 1.5D l!M USD

C'SA L!SD CHE U5u

1.445.340 5.10

506.597 385,624 288.515 27.3.399

1 7 9 1 36 1 02 0.96

lnsurance Rerkshirc Hathaway Inc . R 'AFMC Inc. Htrrwn ;I- Bro\\n lnc. Marsh 6r McLenndn Cos , Inc.

5.13

1nremet Sohware & Services Google Inc , A

\:cnSigti Inc Yahoo! I l l C

408,868 277.547 159,043

135 0.98 0 56

845.358 2.9Y

1T Services Paychcx Inc First Dara Curp. ~rlru5ys Technologies Ltd , ADR

USD I!SD USD

495.259 374,907 230,861

1 7 5 1 32 0 82

3 89 1,101,027

390.6C9 Leisure Equipment & Products FlecLronic Arts lnc

Media lhnision Cumniunica~ions Inc.. A Ihe \Vah Dimey Co Viacorn lnc . U

L: S A 1.38

L SA USA USA

l!SD L!SD I S D

449.067 369.642 325.964

1 59 1.30 1.15

4.04 1.144.671

102.816 0 36 Metals & Mining Snuihcm Pen1 Copper Curp

Mulli-Line Retail Wal-M;in 5iorcs Inc Dollar General Corp.

L CA L!SD

109 0.48

309.444 136,412

447.856 1 5 7

OlTiicc Electronics Agilent Tcchnulcrgies Inc

Oil & Gas L k w i tncrgy Corp

Pharmaceuticals Johnsun & Johnson Wyetli Phzcr Inc Abbeiii Lahor6u7nei Eli Li11y & Co.

LSD 472,601 1.67

1.54 L!SD 435.848

LSD 1:SD L S W L!SD USD

543 075 382.825 437.970

137.047 280,337

1 92 1 70 1 5 5 0 99 0.48

h 64 1,881,254

492.274 330,063 382,310 L8Y i 3 1 174.080 239,445

1.74 1 52 135 1 uz 0 9: 0.84

Semicunductors & Semiconductor Equipment Intel corp ~ p p h r d .\taienals Inc. Linear Technology Curp KL&Tcncur Cot p hlaxim hiegrated Products Inc. Xilinr; Inc

1'5.4 USA USA L!S'4 u S'4 1x4

2.10i.904 7.33

I S D L'SI.1

505.311 425,012 11 1,703 85,134

1.78 1.50 0.w 0 30

3 98

USD L!SD

1,126.160

72

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Growth Fund -


(Cur rency - USD) A l l secur i t ies are ord inary unless o therwise s ta ted

humher of shares or Ikscriprion

rdLT \.aille

11i. or (:ountl-~ T r a d l n ~ Market llCl

L U d f currency ralur assets

Specialty Retail 10,190 Lowis h s . , In(

Thrifts & Mortgage Finanr-e 10.780 Fredtlir Mvl;rc 12.225 Counpuide Financial Corp

TOTAL SHARES

TOTAL 'IKANSFERABLE SECURITIES ADMl.l-lED TO AN OFFICIAI. STOCK EXCHANGE LISTING

Pharmaceuticals 3.400 Roche Holding AG, ALW

TOTAL SHARES

1-OTAL TRANSFERABLE SkCLRITlES DEALT IN ON ANOTHER REGULATED MARKET

TOTAL LNVESTMENTS

l!SA L!SA

USL) USD

703.180 2.48 472.007 167

1,175,187 4 15

2b,77D 134 94 49

26.770,134 94 49

114.200 0 75

214,200 0 75

214.200 0.75

26,984.334 95 24

73

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Short Term Bond Fund -


(Cur rency - USD) A l l securi t ies a r e o rd ina ry unless otherwise s ta ted

Kumher 171 om ot share5 CIY Dwription Couniry Trading Market IlCl

lac< code currency \ d u e assets

2,001).000 2.000.000 1.756.978 1.701.483 1,640.000 1.5: 1.624 1 ,9170,000 1 .485.953 1 ,300.Ot7t7 1,175,768 1.10i7.000 1.080,230 1.075.838 1.000.000

842.386 800.000 765,510 624.Yi3 560,001) 538.398 $49,537 530,000 530.391 484.U6Y 478.3417 175.000 396.001 385,088 .333.434 314.439 307.224 300.000 277,709

179,930 173.62 1 166,678 157.3 10 140.391 127.328 12 1.764 llh.t>73 94.116 91,830 84,870 73.886 44.077 36.991 32,737 31.935 2 3.743 21.194 1 i 039

i8a.904

1.768.910 1,457,283 1,115,249

979,297 953.125

757.202 722,343 7 1 !3 ,20 1 699.821) 675.539 674.i50 652.437 627,963 550.825 728.032 530.878 520,681 396.5111 173,106 480.239 475.652 472.961 469,562 480,401

888.025

TLIfiSFERABLE 5LCUKII I t 5 DEALT I f i O Y AfiOTHER KEGUIAI 1:13 MARKEl BONDS Corporate Bonds (3 First Llu5iun \lorrgagc Serunties CUT.. 4 01438%. 02/25/3: ksidenlial Asset 5ecuritic.s Corp . 2 45%. 02/25Ri Equity One All5 Iric,, 2.481%. 04/25/34 Cuimiry\vide Asset-Backed Ccrtilicatcs. 3 61 3%, 04/25/30 GMAC \fortgay Coip. Loan I'rust, 2,RR'h. 10/25/33 FKSM \\:hole Luan, 2003-lV16. AF3. Z . Y l % , 11/25/33 Eiiscc Ilorne kinancr Pool Ltd , FRk. 3 298. 03/13/14 'I. Residential Asset Secui-itics Corp , FRK. 3.38% 07/25/33 +

Amortiling ksidential Colla~e:al Trusi, 3.03% 01/25/32 Stmcturrd ..\ssrt In\estnient Loan Tmst. 6.56338%. 04/25/33 Readcntial .%set 5ccuritit.s Corp , 7 22%. 06/25/28 Morgan Stank) AH5 C d p i ~ d , 176%. 06/25/34 Equity Clnc ,485 Rrsirlcritial Asset Securities Secuntizcd Asset Backed Ht Resirlen:i;il Assei Securities Gh1.X \lorigage Gorp. Loan .IrusL, 3,148. Oti/25/25 Residential .+ML h-urit ies Carl'., 3.372%, 11/25/28 (:ounti-ywrte ,%str-Racked Certificates, 2 62%. 04/25/22 Amenquest \lorigage Securities Inc.. 4 272010, 07\25/33 Morgan Stanley AB5 Capitd, 1.90%. 09/25/33 .4ineriqucst Mortgage Securities Inc , 3 23%. 12/25/33 EQCC Home Equity Loan lrust . 6.63%. 07/15/29 Ainerique,i \lorigage Securities liic., 3.02%. 09/25/33 t:quiiy One ABS lnc . 3 80%. 07/25/31 fiovastar tiornr Fquii) Loan. 1.915%, 09/15/32 EQCC Hoinc Eclui~) Loari I'wsi, 6.847%. 01/15/28 t.ung Beach Mortgage Loan I m s ~ 3 67438%. 10/25/34 Residential 1:unding Mortgage Security 1. 4.00%. 12/23/17 Residential Funding Murigage Securities 11. 6 46%. 09/15/20 Residential Funding Jforigage Secun:ies I, 3 15%, 07/23/18 t-irst Plus Home Loan Trust, FRh, 6 92%. 12/10/24 + Popular ABS Mortgagr Pass Through Trust, 3.30%, 09/25/33 Countryu irle Assei-Racked Certilicatcs. 3 68438%, 02/25/.33 .4rneriquest Mortgage Securilirs Inc.. 3.17%. 12/25/32 Counlryuide Asset-Backed Cenilicaies. 1 32%. 04/25/34 First I'lub I lome l o a n Trust, 6.95% 01/10/24 .%meriquw Morigage Securities I n . . 2.2825%. 05/25/33 Block Vnngage Finance Inc. , 6.60%. 02/25/30 Ame:iquesi Morignge Securities Iiic , 3.64438%. 09/25/33 Lung Reach Moi-tpage Loan .Trust. F-Rh, 2 97%. 06/25/33 + Residential .4ssr1 bhig3gC Products InL.. 3.496%. 09/25/33 Long Beach Mvlortfiigr loan Trust. FRN, I l l % , 11/25/32 + Lounm)uide .4sse:-Backed Certificairs. 1.43%. 09/25/33 Saxmi Asset Srcurity I rusi. FRY, 3 05%. 12/25/32 + Counlr>wde .4ijcl-Rackrrl Ctriilicatcs. 3.624386. 09/25/33 ResidenLkil lwuling Mortgage Securilics 11. 3 46438'6. 02/25/13 Residential Asset Securiiies C.orp., 3.564381, 05/23/32 fieu- Cciitilry Hoinr Equity Loan .Trust. F R h , 2 93% 07/25/30 + CII Gruup Home Equity Loan .lrust. 5 97%. 03/25/29 Firs1 Franklin hlortgagr, 3.71 438%. 02/25/33 Criitex tlornr Equii). 3 09%. 12/25/32

5USLlUChannd AU:o k a S c Trust. 4.08%. 07/16/07

, 2 8298. 05/25/34

Government Bonds FNha. AKM. 3 56S'h, 01/01/27 kUMA Whole Loan 4 241 % 02/25/33

I'hM?i, ARM. 3 196% 11/01/32 FNhLA. .J.RlI. 3.128%. (74/01/32 FHLMC. 4.555%. 01/01/32 tNMA. ARM. :3.0216, 07/01/20 GYhLI. ARM. 4.008, 07/20/32 I~III. .MC. 4 6248. 12/01/30 FHLUC. AKM. 3.168%, iY01/23 GKMA. A R N 4 00%, 0W20/29 FNhLJ.. 4 K h l . -5 35%. 06/01/32 1-IILMC, ARlrl. 3.657% 10/01/23 F K M . 3 606%, 03/01/31 FlIL.21C. .ARM. 4 829'u.. 03/01/23

Gh\l.A, ARM. 6.3756, 04/20/28 FNhti. .4KM 3.846'5. 03/@l/lY FNMA. ARM. 5.46995. 09/01/32 FHIMC. ARXI. 6 797%. 12/01/317

USL) LSD

L:SD L!5D USD USI) I S D USD I S D 1 S D L:SD L!5D I!SD USD l!SD LSD 1 S D c:su I!SD 1!SD

LSU L!SD U5D USD

USD I!SD LSU

2,011.130 1.086.214 1 .T50.482 1.695.785 1.609.860 1,506,713 1.500.00t1 1,489.566 1,303,250 1.178.969 1.109.952 1.096.19R 1.079.112

997.352 844 334 8I71 708 763,447 621,846 557.330 548.834 538,651 534,252 529 003 4R 3.680 477.184 471.744 396,6C9 384 741 334.642 312.591 3@9,518 295.945 277.544 189,093 178 374 173:836 166.779 157.225 140.622 127,053 121.977 116 217 94 068 92.13'6 85,110 71.983 33,l 511 37.017 32.787 31.959 23.925 21.208 11.045

31,725,570

.?.I8 3 24 2.85 2,76 2 ti2 2 46 2 45 2 13 2 13 1 9 2 1 Hi 1.79 1.76 1.62 1 38 I 3 1 1 2 4 101 0 91 0 90 0 89 0 87 0 86 0 79 0.58 0.77 0.65 0 6 3 0.55 0 51 0 50 0.48 I7 45 .~ 0.31 0 29 0 28 0 27 0.26 0.23 0.21 0 20 0 19 (1.15 0 15 0.14 0.:2 0.07 0.06 0.05 0 05 0 04 0.03 0.02

51 72

USD L'SD 1!SD USD L:SD LSD CSD USD L!SD

1.SD USD USD 1!SD 1:SD 1:jD I'SD U5L) 1!5D USD L:SD

um

1821,634 I.ti7.44@ 1,135,383

994 544 960.375 902,753 783.249 727.701 726,309 720.897 691.627 682,539 672.310 647.905 568,296 736,146 534.903 527,641 502.280 49 3.481 486.791 483 421 476,967 476,430 476,310

2 97 2 37 1 85 162 1.37 1.47 1.28 1.19 1.18 1 1 7 1 1 3 111 1 1 0 1 06 0 93 0 87 0 87 0 86

0 80 0 79 0 79 0 78 0 78 0 78

o a2

74

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Short Term Bond Fund -


(Currency - USD) A l l secur i t ies are ord inary unless otherwise s ta ted

Tiumber ol 'XI of shares or L)ewiptioii Cuuntn Trading LLtrkcL net

law value cndc rurrcncJ value db>tT>

457.Y24 457.629 440.531) 430,047 434.770 390,297 384.278 383,769 367.942 .369 ,668 335,686 304.330 287.564 232.329 223.276 214.355 205.496 163.060 106,791 90,944 71.620

Government Bonds(coi1tinucd) FSMA, .4R\1. 5.156%. 08/01/32 I~~IILhlC, ARM 6.1498. 06/01/23 FHLMC.. A R M . 5.935%. 07/01/31 t , l ILMC, 5.3748. 07/01/21 FHLLfIC. A R H . 3.30% 04/01/24 l.N\M. .4Rhl. 4 79'k 10/01/27 FNMA. ARM, 3 477% 12/01/28 C;N%l. ARM. 4 62596. ll/20/24

GYhM. AKhl, 4 625%. 12/20/23

Gh'hlA .4R\l, 4.625%. 12/20/24 FHI-MC. ARM. 5 70%, 06/01/31 FN\L\, ARM. i 076%. 12/01/31 FNMA. ARM, 7 203%. 04/01/30 I , N \ U . .4Rlrl, 3.568% 02/01/25

Fk\IA ARM, 5.828. 02/01/31

FH:.MC. 5 . 0 ~ 9 % . O ~ / L I

, . . . . , . . . .. . - I:hM, ARM. 5 664%. 07/01/31 FHLMC ARLI, j,927%, 07/01/31

467,526 465.090 448,484 $47.517 441.263 403.5 10 392,734 390,972 378,991 375,768 347.065 310.047 294,739 236.39 1 228,555 22 1,872 207.424 165.165 109.643 94,081 73.635

0 76 0.76 0 73 0 73 0 7.2 0 66 0 64 0.64 0 62 0.61 0.57 0 50 0 48 0.3R 1737 0.36 0.34 0.27 0 18 0.15 0 12

TOTAL BONDS

I O l A L TRAN5FFRABI.E SECLRITIES DEAl T IN ON A N 0 1 HER REGULATED MARKt 1

TOTAI INVESTMENTS

7 Flrrmng Lites are indicated as 'ii Junt 30 LOU5

24.986.859 40 73

56.712.429 92.45

56,712,429

56,712.429

92.45

92 45

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Smal l -Mid Cap G r o w t h Fund -


(Currcncy - USn) Al l securi t ies are ordinary unless o the rwise s t a t ed

% 01

race dL1e code currency Yillur assets sliarc! or Description Coun:? .I ralllng hlarket nt.1

Number ol

Aerospace & Defence Lrnbraer-Fmprcsa Brasilcira de Aeruriauuca SA. ADR FUR %stems Inc R ~ C ~ W ~ I I ~ d h In[. L-3 Coiiiinuiiications Holdings Inc.

281.095 244.688 162,112 153.160

1.41 1.23 0 81 0 77

8.500 8,200 3,400 2.003

S . l W i ,>75 _. I

14.lCO 4,600 3,600

1,600 2,900 3.700 3.600 2,(i00 2,500 3,700 5,300 4.500

900 500 900 200

8.801) 5.400 7.100 1,200 1.900

3,700 6.500 3.700

2.100 3,300 3,200 5.80C

3.300

3.150 3.000 3.300 5.900 9.300

9017 2.700 1.300

841.059 4.22

254,031 214,135

Air Freight 6r Logislics b.pedltors International of \Vashington lnc Foiward Air Cvrp.

I!SA [!SA

1 28 1 07

468.1 76 2 35

256,620 201.480 193,212

Aulo Components

Auurliv Inc Borg Warner Inc

Ge11te.i Corp 1.21) 101 0.97

3 27 651.312

133,Lb-t 118,233 76.422 72.756 60,814 54.400 51,282 49.131 44.910 43 425 13.950 11,880

1.4M

0 67 0 59 0 38 0 36 0 30 0 27 17 26 0 2 i 0 23 0 22 0 07 0 06 0 01

Biotechnology I n \ iirogen C : m p (:elgene Corp Tclik Inc Prottlin Design Labs Inc hleclicines Co MG1 Fhanna Inc. Anglrrtcch Phariiiaceuticals Inc biillennium Pharmaceu:icals lnc .Irimerls Inc Charles Ki\ r r I :aboraioiies Intel-national I i i C Viciirnn Fhamaceuricals lric Kc x ~icrpharmaceuticals Inc. d l i r i s 1iic

USA I!SA USA USA

USA USA l 3 . 4 USA L!SA

731.953 3 67

Capipal Markets Amentrade Holding Corp Fedelated Invcsturs Inc.. R E'TRADL: hrlancidl Gorp Hlackrock Inc. Jcllerie.; Group Inc.

[!SA [!SA u 5'4 USA L j A

163,502 162,054 99,329 96.540 71.991

59'3.706

227,920 198 640 122,100

0.82 0 81 0 50 0 39 0 36

2.98

Chemicals blincrals Technologies Inc Unva (:hcmicals Curp. Cnbut Corp

LSA CAY [!SA

1 1 4 1 00 0.6:

548.660 2.75

100.065 100.023 98.868 94,192

Commercial Ranks CulltmlFrost Bankers Inc Commerce Rancorp Inc. L'mpqua Holdlngs Curp C!CHH Hnldmgs Inc

0 50 0.50 0.50 0.47

1.97

0.36

393,148

Commercial Services & Supplies CUI Corp

Communications Equipment Triinhle Navifiitlon I ~d .\roccnt Ccirp. C;liapuh C:oi~iinunica:iuns Corp Avaya Inc Microtunr I:lc

72,336

122.755 78,420 56.298 49 ,088 46.640

USA L!SA U >A

0 62 0 39 0 28 0 25 0 13

C'SA l3 .4

353,231 1.77

47.952 25.738

7.631

Computers & Peripherals l\\Icl -1-echnology Inc. Ovcrlarirl Storage Inc. Lasercard Corp

024 0 13 0 04

0 41 81.341

76

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Small-Mid Cap Growth Fund -


(Currency - USD) A l l secur i t ies a re ord inary unless o therwise s ta ted

of sharcs o r Lk5cripiion Counin Trading llarkei rici

laic d u e d e currency d u e assets

tiumber of

Consumer Finance Pro:-idian Finaiicial Gorp Federal Agriiuliure Mortgage COT.. C: SCD Group Inc.

0 96 0.88 0.36

10.800 8,000 3,300

760 7,500

2.600

1.81)O 5.400 4,100

11,800 8,100 3,900 3.T00 3.300 6.400

400 1.300

5,300 7.300

9.600 5,600 2.700 4,300 5.400 I .on0 1.900 2,800 1,800 4,600 2.800 1.900 1 ,800

800 2.700

+.ha0 2.600 4.000 4.300 4.700 2.700 1.400 3,500 2Si00 4.300 1,400

800 1.600

800 500 800 800

190,404 176.400 71.379

338,183 2.20

1.12 0 74

Diversified Financial Services Chicago \Iercaniilc txctiange CaptalSource lnc

224,330 147.225

371 .805 1 86

62.140 13.31 Electrical E uipmcnt b'ilsoii C;rea%atch Tech:iologit.s Inc

Electronic Equipment & Inslruments P3r.k Flccirochcrnical Corp Kemer Corp. Mcrix Curp.

1.5.4 C S D

I!SD USD UEL1

0 23 0 17 0 12

0 52

1 3 5 1 1 3 1 03 0 66 0 49 0 21

45.360 34.020 23,985

103.364

Energy Equipment & Services Chesapeake Energ) Corp Paiierson L; I1 Energy lnc. Cal Dive Intemaiional Inc Spinnaker Exploration C o Kowan Cos.. Inc Pciroquesi hcrg) Inc

269,040 225,423 204.243 13 1,3 1.3 0 8,043 42.048

USD USD USD C!SD L!5D L'SD

970.110 3.87

Food & Staples Retailing \Vh;rle Foods Markei I r i i . 1 B - E lnc

$7,320 33,722

USA USA

IJSD 1!SD

0.24 0.17

0 41 81.042

Food Products Bunge Ltd Dc;lrl I;clods Inc

USA USA

LSD USD

336.020 186.772

1 68 0 Y4

2 62

1 46 1 0 5 0 88 0 80 0 70 0 64 0 63 0 56 0 4Y 0 36 0 29 0 25 0 25 0 24 0 11

522.792

Health Care Equipment & Supplies Pall Coip. \'arian Mcdicd Svwcrns lnc

291 $56 209.048 175.230 15Y.831 139,158 127.243 126 360 11 1,104 97,200 70.886 57,820 70.730 4Y 824 48,000 21.681

hsher Scientilic international Inr. IVaters Corp kens Corp. Inamed Corp C K Bard lnc. Advanced heurninndulation Sysicrns Inc. Denlsply lriiernational h ic Merit Medical Sywern5 h c Arncric-an Medical Systems Holdirlg~ Lld Wright \4etiic;d Gruup h e . Lligme Corp Kiiielic Concepi5 Inc Siert.oiaxis Inc

.. USA I! 5 A (;SA 1'5.4 C!5A

1 ,735.580 8.71

1,6? 17 03 0 77 1772 0.57 0.54 0.50 0 47 0.45 0.43 0.35 0.27 0 24 0 21 u.12 0.11 0.10

Health Care Providvrs & Services EicihCarc Health Systems Inc Sierra Health Services Inc Heaih k t Inc , A Cen:rne Corp VC:A Anicch Inc. LabOne lnc Covmiry ticalth Cai-e lnc Rehabcarc Group lnc Aprla I-lcalthcare Group Inc. PAREXtL International CniF LifeFoini Hospiials Inc

328.670 183.796 152.640 144,394 113,975 107.487 99.050 93..555 90.064 8 5.3 5 5 70,728 74,376 48.224 41.664 23.430 22.152 19.080

8.43 1 680 640

77

FRANKLIN T E M P L E T O N I N V E S T M E N T FUNDS - Franklin U.S. Small-Mid Cap Growth Fund -


(Cur rency - USD) A l l s ecu r i t i e s a re o r d i n a r y unless otherwise s ta ted

B l>r sh3rcs CII- Lkscriptiori Cnuntry Tradint: Market I l t l

i%iiinher of

lac, \.iiluc N l C k current) value weis

Hotels, Restaurants 6r Leisure Penn Nauurial Gatnlng Inc U)'s Resrduranl Inc Orieni Express Hotels L:d , A

270.100 58.986 57.006

7,100 z,y00 1,800

220 1,700

3.630

3,800 3,300

I60

3,700

5,31717 10.700 2,400

700 1.000

900 3,700

3,700 3.500 3.900 3,3170 3.700

10,700 3,8017 6.700 2,41717

2.i00 2.600 1.600

2.6i)U 3.000 1.e00 1,600 2,400 3.200

2.100 2.100

7.900

6.700 5.800 3.300 3.100 1,300

1.35 0 30 0 29

1.94 386,092

0.90 0.69

Household Durahles hVR Inc. H;i:rnan In~emari~~nal lndustnes Inc

178,200 138,312

1 59 316.512

Industrial Conglomerates .Iltwler-Toledo International Inc

Insurance IPC Hnldmgs Ltd. Brown k R T O ~ T I Inc. W h w Mountains 1nsur;ince Group Inc

CIlL 167.688 0 83

150.556 148.301 100.944

0.76 0.74 0.51

399.81'2 2 01

Internet & Catalog Retail 1 ]ill Gruup I W

ln~ernet Software & Services Vei-iSigii Inc. Entrust lnc. hkirchex Inc.. R Whsense lnc.

JAblnAT Mnhile Inc. wehl.lethods lric

lrl~uSp3cF I l l C

USA 50.875 0.25

172,428 51,253 36 096 33.635 32 930 24.91 2 20.720

0.76 17.26 0 18 0 17 0 1; 0 13 0 10

u5u USD I!SD USD IJSD LSD C:SD

351,974 1.77

126 0 83 0 i 9 0 38 0 34 0 28 0 27 D 25 0 11

11. Services W h a l Payment, Inc. Cvgruzant Technology Solutions Curp . A Alliance Data Systems Corp. Kanbay Iriterriauonal Inc. Jack Hen?- 6r Awciaies Inc. h v s o n S n h 3 r e lnc. JDA xittware Group ITX ReanngFolut Inc. R5.q 5ecurq lrrc

LSA L!SA I! 5.4 C!SA us.4 IJSA

USD LSD USD I;SD I:SD USD I!SD L!SD IJSD

250.860 164.955 158.184 76,263 67,747 53.107 34.624 49.111 27.55.2

USA USA L!SA

904,301 4 54

163,388 102.440 73.360

0.83 0 51 17.37

Machinery Oshkosh .Iruck Cu:p 1 r r u Corp Kennametal lric.

USA (:SA [!SA

340.188 1 71

193.076 100.980 85.056 56.720 18.696 12.865

0.97 0.51 (7.43 0.28 0 09 0.06

Media Gerrv Images lnc. XI1 iatcllite kirlio Hnldlngi I n . . A Aquantive lnc Lku 1ur1t.s 8 Co.. Inc Fn~ra\Ision Comrn1inic;iticrris Corp Acme Curnmunlcationi lnc

L! s L1 U5D L!SD USD I S D c: 5 L)

467,393 2.34

109.284 77.847

Metals & Mining Peabody Lnergy Corp Reliance Steel 6z Aluminum Cu

L';D L:SD

c.55 0 39

0 94

Lw

187,131

160.855 Multi-Line Retail Dollar General Curp

Office Electronics I cktronix lnc. Thcrmo Elcctrori Cvrp Vari.in Irlc Coherent lnc. Dolbb Labordrones lnc.. A

LSD

155.909 155.816 124.707 111.631 28.678

c:s.\ L: 5.4 USA

I!SD L'5D L!SD LSD L:Sn

0.78 0 78 0.63 0.56 17 14

L!SA I!L4

iT6,771 2 89

78

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Smal l -Mid Cap Growth Fund -


( C u r r e n c y - LJSD! Al l secur i t ies a r e ordinary unless o therwise s ta ted

% ol

h c c \.due code currcnc) valur aswts shares or Descnpon C uunlry Trading Markei Wl

NumbFr ~l

Oil & Cas hwlirlrl pxploratioii (10 Ashland lnc

1XA USD 303,164 c:5..\ I!SD 64.683

1.52 0.32

7,600 YO0

Y 00

3,800 5,YW 2.600 1,800 2.200

600

5.900

13,400

Y ,600 8.300 1.600 7.100 5.100 2.11717 2.900 3,8170 2.600

6,400 4.100 2,500 1,900 3.800

700 100

6,500 4.500 2,100 1,300 1,900 1,100

4.500

9,300 2.700

1.700

.367.817 1.84

38,997 0 20 Personal Products Albsrio-Cul\cr Cv.

Pharmaceuticals Warson Pharmaccuticals Inc Ivax COT !derlicis Pharmaceutical Corp , A Connctics Corp Iri5pire Pharmaccuticals Inc. Fhanniiin Corp.

LSD

141.888 126.850 82.498 31 752 18.524 13 926

0 71 0.64 0 41 0.16 0.09 0.07

LISD USD USD l!SD

415.438 2.08

Real Estate Jones lang LaSalk lric

Road 6r Rail J .B Hunt Transpon Stnice, Inc

Semiconductors & Semiconductor Equipment \Iicrochip Icchnology Inc liitcrsil Coq>., A Lain Research C o r p Eletrro Scientilic Industl-its Inc. Scnitcch Coq'. I . inex Tchwkigy CUT. FormFactor lnc. F.xar Corp Actel Cnrp

L S A USD 260.957 1.31

1:SD 258.620 1.30

1 +3 0 78 0 67 0 46 0 42 0 39 0.38 0 28 0.18

I!SA 285.3.52 155,791 133,124 91.188 84.915 77.039 7h.hin 56,582 36.140

USA USA C:sA

995,759 4.9Y

1.23 0.52 (7.47 0.38 0.26 0.07 0.00

Software Macromedia Inc. File-iet Gorp

H)-penon Solutions Corp

S;rlcsfurce coin Inc. \crity Inc.

r iAV 1 LQ CUT.

(Jucsl soilwary Inc

244,608 103.074 92950 76,456 5 1.791 10.240

877

57Y.YY9 2 91

S ecialty Retail C\ico's FA5 Inc. Tuesday \laming Curp. .lractor Supply Cto 4d\arice .4uto Parts Inc Regis Corp Cos; Plus Inc

222,820 141.840 103.110 83,915 74,252 27,434

112 0 71 0 52 0 42 0 3T 0.14

653.371 3.28

Iexliles, Apparel & Luxury Goods Polo Ralph Laurcn Curp

Ihrifts & Mortgage Finance Dora1 Financial CUT. Il'ewoqi

193.995

153.822 141.534

0 Y7

0 77 0 71

1 48

0 $4

96 21

Y6 11

96 21

I'Rl LSA

295.356

Wireless Telecommunication Services SI1 Hddings lnc 1%

TDTAL SHARES

TOTAL TRANSFtRABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TDTAL INVESTMENTS

108,698

19.179,053

19.179.053

19.179.1753

79

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in U.S. Total Return Fund -


(Currency - USD) A l l securi t ies a r e o rd ina ry unless otherwise s t a t ed

Number elf st1art.s or Description Cuiiritry TrJding Market net

race \ - ~ I U C code currency \-slue i1sse:s

IRAMFFRARI.E 5ECL!RI-IIES ADMIIIED TO AN OFFICIAL. STOCK EXCtL4NGE L I W N G

h00.0OU 600.000 630.059 100.000

1 .015.000 100.000 140.000 92.000

370,000 100,0~?0 52.000

150.000 50.000

140,000 55,000

5,739 3.0DO

317,000

751 ,tN10 566.945 600,000 500.000 500,00L! 400.000 400,000 .385.000 333.25.5 250.000 250.00l) 250.1100 240.000 244,443 200.171717 200.300 200,01)0 L1JO.000 200.000 200,1700 200.oi)o 200.000 200.17017 200,0@0 200.000 200.00(1 2170,000 200.000 189.402 1!)0,000 169.088 150.000 135,171717 100.000 10~~.0017 100.000 110,000 100,000 100,000 100.000 100.000 100.001) 100.00ir 100,000 100.000 100,000

BONDS Corporare Bonds !vlcirg;iri St;tnley Capiial 1. 5.434316%. 06/15/38 Grcciimich Capital Commercial lwntling C n r p 5 31i'f;. 06/10/36 Cciuritr)widt. .Asser-Backcd Certificates. 3 22%, 12/27/31 Fcironas Capital Ltd.. 7 00%. 05/22/12

Government Bunds Republic of Foland. 6.008. 05/24/09 Republic of Lkrairie. I,KA. 7 36%. 08/175/0Y + Gciverrimt.nt or New Zealand. b 50% 04/15/13 Repuhlic of Argentina, 1 K h , 3.0176. 08/03/12 + Kingdom ut Nomay. 6.75%. 01/17/P7 GLwnirrieri[ of New Zealand. 7.005. 07/15/09 Republic or Fhilippixs. Y u0& 0 U W l 3 Repuhlic ol Poland, 8.50% 11/12/06 Republic crl \'ent.zucla. FRN. 3.095, 04/20/11 + Kingdom of Sweden. 5 5 W . 10/08/12 Kingdom ul Su.&n, 8 OO%, (78/15/07 Socialist Re ublic ut Vietnam. 1 , H t i . 4 0625%. 03/12/16 : Kcpuhlic n?L'cnezuela. 9 25%. 09/15/27

Securities Maturing Wthin One Year Keu Sciilih W J ~ S Treasuiy Corp.. 6.50%. 05/01/06

TOTAL BONDS

TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAI. STOCK EXCHANGE LISTING

TRViSFERABLL: StCL!RITIFS DEALT Ih OS ANOTHER RECXLXTED M.AKKFT BONDS Corporale Bonds First Franklin Mim@gc L.oan Asset-Racked Certilira1t.s. 3 6743870. 10/25/34 J P Xlorgan Chase Commercial Xlungagc Scc COII.. 5 5608Y%. 6/12/31 Susclucharina AUIO lease Trust. 4.43%. 06/16/08 Countqwde .Asset-lhickt.d Certificates. 3 128. 06/25/33 Kt.aillential Funding Mortgage Sccurilics 11. 4 70%. 08/25/34 (MAC hiongage Cvrp Loan Trust, 4.388%. 09/25/34 Cha5t. Funding Milrtgage Loan A5t.t-Backed Certificates. 3.34%. 05/25/26 Residenrial Asset Securities Ccrrp , 3 38438%. 05/25/:33 Ucn7 Centtill; Hcirnt. Equil) I.oan Trust. 3 5643%. 08/25/34 XI-0 hergy Inc . 5 308. 06/30/15 Residenrial i k e t Securities Ccrrp., 3.213'b. 04/23/32 Equity One ,4135 lac , 3 205% 04/25/34 Atnrriquesi Mortgage 5ecuritie5 l r i ~ . . 4.37% 10/25/33 Legacy Rciielits I r i ~ m ~ n c e Sellleinents LLC. 5 35%. 02/10/39 M.'cyerhacuser Co , 7 375%. 03/15/52 JF Alnr an Chase iir Lo.. 5 75% 01/02/13 Gener;ik,ilec,ric capital (:ob.. 5.45%. 01/15/13 Citigi-oup In[.. 5.00%. 09/i 5/14 SRC Con1inuiiica:ions Inc , 5 10%. 09/15/14 Intermticrrral I.case Finance Corp , 5 75%. 02/17/07 Guldrrian Sachs Group kic.. 5 125% 01/15/15 Rear Steams Los . lric . 3 75%. 06/23/10 Cleireix Cv., -t 20%. 01/15/10 Y-rruriured &set Securilio Crrrp.. 4.1 3%. 02/25/34 Popular AlG !hrtgage Fass-Through .Irust, 3 856%. 09/25/34 Morgan Suitile), 4.75'X. 04/01/14 EOP Operdiing LF. 4.75%. 03/15/14 Fnrd Motor Crcdit Cu.. 7.375%. 02/01/11 GE Capital C.oiiinicrcial Mortgage Cvrp , 4 819%. 01/10/38 Firs\ Franklin blvloi-tgagc, 3.58+38%, 10/25/34 Amenquest Mnripge Securities Inc , 4.2728. 07/25/33 Counir) wide Asset-Racked Ccrtihcaw. 4.634%. 03/15/35 New Ceiitur) lloinc Equit! Loan T r J b t , 3.76%, 11/23/33 FirsrFncrgy Corp . 7.375%. 11/15/3: T)-wn r e d s I n . . 8.25%. 10/01/11 K w s Ainenca liic , 7.25%. 05/18/18 Clevelarirl Electric Illuiiiinatiiig Cu . 5 65%, 12/15/13 L ~ x Jledia West LLC, 9.87590, 08/17/l 3 Cendarit Cotp , 7 12i'h. iWlY15 Verlzvri Glohal Funding Cory ._6.875%, 06/15/12 Washington hlutual 1,iri;iricid L . o q ~ 6 875%. 05/15/11 RC:P Cr).;:;tl Iluldings Cor]'.. 9.625% 06/17/l+ Centei-peiirit Energy Inc , 6.85%. 06/01/15 TRW huroinutive Inc . 9.373%. 0U1313 Time Warner lric , S m o r Note, 6.75%. 04/15/11 Krogei- C U . 6 . m . o-t/01/11

PI .N l S D hZD I!SD NVK YZD 1!5D PLY L:Sn SEK 5LK 1!SD I!5D

638,619 633.060 632.717 113.973

1 7.3 172 172 0.31

2.018.369 5 48

318.413 108,000 !02,231 82 638 76 590 72,412 55,190 4 7 . 1 ~ 46.oro

947.448

23.056

L!SD USD 1!SD L!SI)

C! 5 L) 1!SD L!SD LSD L:5D I!SD C! 5 LI 1!SD Cl5D LSD

C!SD LSD USD LjL3

2 988.873

L.Y88 873

754.lT4 607.037 604.500 499,953 397.7017 399,557 393.333 385.973 334.539 255.276 249.413 246.391 240.005 237,033 236,586 214.609 212,4811 204,965 204,866 204.544 204,092 201,653 200.528 199.504 197.497 19.382 1Y6,426 197,039 193,186

168,816 149,691 134.439 122.632 118.745 11 7.4D8 115.885 114.500 114,049 113.6% 112,551 112.500 llL.071 111.250 110.952 109.Ytl

1 9 o . m

0 86 0 29 0 28 0 22 0 21 0 20 0 15 0 13 0 13 0 06 0 02 0 01 0 0i

2 57

0 06

8.1 1

8 11

2 05 1 65 1 64 136 1.35 1 .I18 1.07 1 0 7 0.9 1 0 69 0.68 0 67 0.65 0.64 0.64 0 58 0 58 0 56 0 Sh 0.55 1) 57 0.55 0.54 0 54 0.74 0.54 0.53 n.53 0.32 0 52 0 46 0.41 0 36 0.33 0.32 0 32 0.31 0 31 0 31 0 31 0 31 0 30 0 31) 0 30 0 30 0 30

80



(Cur rency - USD) Al l securi t ies a re o rd ina ry unless otherwise s ta ted

CLlur1;r). Trading code curretic>

%> of M~rke i 1ie1

value assets

130,000 100.000 IOO.OOO 100,000 100.000 100,000 100.000 100 .000 100.000 100.000 100,000 100.000 100,000 100.000 100,000 100,000 100.000 100,000 100.000 100,000 100.000 1017,000 100.000 100.00~7 100.000 100 .000 100.000 100,000 100,000 100,000 100.000 100,000 100.000 100.0017 100.000 100,000 100,000 100,000 83.653

100,000 83,100 66.000 50.000 50.000 46.296 35.428 28.000

1.930

892,559 650.000 600,000 6110,000 450.000 540.754 529.399 500.000 499,480 500,000 700.000 350,000 446.260 399.391 392.819 392.800 352.291 333.182 281.253 294.722 300.000

279.123 255,284 200.000 830.000

8,000,000 200.000 197,749 192,540 191.421

288,420

Corporate Bonds (coritinuecl) Nextel I:omniunicalinns Inc , 7 375%. 08/01/15 Gazprum International 511, 7 201 'h, 02/01/20 U o y l Gaming Corp , 7.75% 1U1 511 2 Inleracu\e Corp . 7 00% 01/15/13 Waste \lanagemcni lnc , 6 50%. 11/15/08 Case Kew 1 Ivlland Inc., 144.4, 9.25%. 08/01/11 \Va>hington Mutual Bank, 5 65%. 08/15/13 RFS1 Inlcmarional h , . 6 25%, 12/15/13 Bank of Amenca Gorp., i 25%. 12/01/15 Kerr McCee Corp.. 6 95%. 07/01/24 IntelsaL Bermuda Ltd.. 8.258. 01/15/13 El Faso Corp.. 7 K 5 % , 06/15/12 Lukrizul CUT.. 5.50%. 10/01/14 Harrdi's Operating Co . In1 . 5.50%. 07/01/10 lilernll Lynch k Co., I n . . 5,007;. 01/15/17 ~blrlbi-Consulidated Inc , 8 375%. 04/01/17 Varathon Oil Corp.. 5 375%. 06/01/07 R. R. Donnellc) k Sons C.O.. 5.50%. 05/15/15 latiird LLC, 144.4. 7.125% 05/l 511 5 Albtmarle Curp., 5 10%. 02/01/15 Popular ABS ilortgage Fass-Through I rusl. 4.T50B. 07/25/35 Curnust Corp.. 5.65% 06/15/35 Flexti-onics Inrcrnahnal l.td 6.25%, 11/15/14 FchoSrar DBS Corp , 6 375%. 10/t71/11 .lelecom ltalia Capital. 14411. 4 95%. 09/30/14 TXU Cor]>, 6 55%. 11/15/34 Liberiy Media Curp . 3 50%, 09/25/06 Pacific Gas 6z Eleciric Co , 4.20%. D3/0l/ll 1:3 Corrirriunicauuns Corp.. 5 875%. 01/15/15 TXL! Coq., 7.55%. 11/15/14 Kayu\-ac Corp . 7 375'6. 02/01/15 C X Holdings IIK.. 7.625%, 07/15/18 Limited Brands Inc , 5 25%. 11/01/1$ Wells Fargo Sr Co , 3 125%. 04/01/09 Ford Mmor Credit Co., 7 2 5 6 . 10/25/11 Unim Pacific Coq> , 3 625%. 06/01/10 Q w s t Communications Inlemariori.il Inc Allied \t73src Kurtti America Inc , E. 5 75 JP > l o r y Cliascconiiner~ial hlvrt~dge 3ec Coq7 , 5 115%. 07/15/41 Genera Motors Curp.. Senior Deb., 8.25'8. 07/15/23 kis talian Liquificd katural (;as Co , l . id. 3.437% 09/1j/ir9 Wells Fargo Home Equiiy 'I rust, 4 8TB. 11/25/28 Comlr)witlt. Assel-backed Certificates. 4 649%. :0/25/32 R<5idential Asset Mortgage Froducts lric . 4 257%. 06/25/29 Residen1ial Asset Securilics Corp . 7.22%. 06/25/2$ Chase kundmg MoTtgage \ . O m Aswi-Backed Ccrtificacs. 3 61 438%, 07/23/33 Counrrywirle Asset-Backed Ceriihcaies. 3 774%. 08/25/32 Firs: Franklin Morlgiige. 3.71438%, 02/25/33

Go\ernrnent Bonds FYMA 5 508. 04/01/35 1 2 Treasury Doncl, 5 50%. OA/15/28 t;h.Mil, 5.00'6, 07/15/33

U.S Treasur). Bond, 6.i7Olh. 01/15/26

1,NhW. 5 295%. 11/01/32 FK!W 6 625%. 10/15/07 I~Ii!v!A, 6 00%. 05/03/35 1 2 Treasur). Note, 3 125%. 05/15/07 L;h.Mil, 3.125% 12/15/07 FNht4. 6 625%, 11/15/30 FUMA. 4.08%. 12/01/34 FUMA, 5 70%. 09/01/33 GhLL4. SF, 5 00%. 03/13/34

F N M A 6.008, 11/01/34 FNMA. 7 ,506 , 02/01/30 FNhM. G9.3-33. K . 7 00%. OY/25/23 FNMA. 5.00%). 10/01/34 HilU. 3 25'h. 02/15/09

I!.S Treasur) Kute, 3.00%. 02/li/OR

FUMA. AKM. 4.368%. 02/01/34

FHI.MC. 5 OO'X., 07/01/33

F N I 4 7.50%. 11/01/32 FHLhlC , 5.0070, 0$/0 1/34 FHI.MC. 7.00%. 05/01/:32 I! S. Trcasur) Bond 5.3T5%, 02/17/31 Guvmiment of Mala)sia. 4 305%. 112/27/09 Thailand Government Bond. 8.170%. 12/08/06 C:.S Treasury UJnle. 3 375% 10/15/09 FH1.M. 3.50%. 04/01/2(7 FHI MC. 3 50%. 0;/01/35 FNhlA. 4 639%. 12/01/34

108,500 108,000 107.375 106.784 106,3175 106.250 105,480 107,386 107.085

103.750 103.500 103.3 18 103.316 102.597 102.500 102.032 101,707 101.051 100,183 100.1 29 99.938 99.750 9Y.625 99.196 98,712 98.682 98,356 97.500 97.486 97,250 97.000 96,808 96,786 96.346 96,lYh 95.125 94.1700 86823 83.250 $1,639 66,386 49.867 49.821 46.980 35.510 28,049

1.931

15.275,054

9175,587 163,654 60C7.187 590.461 554.590 542.099 53'5.093 530,441 712.405 495,430 491.788 497.770 447.673 405,346 396.463 392.923 361.410 3S6.823 208,317 297.228 293.362 292.803 279,564 269.035 2.36.063 226.376 207.171 197.250 197,061 195.313 1 Y 2,hTY

103,827

- - -

0 29 0 29 0 29 0 L Y 0 29 0 29 0 29 0 20 0 28 0 28 0 28 0 28 0 28 0 28 0 28 0 28 0 28 328 0 27 0 27 0 27 0 27 0 27 0 27 0 27 17 27 0 27 0 27 0 26 0 26 0 26 0 2b 0 26 0 26 0 26 0 26 0 26 0 25 0 24 0 23 0 22 0 18 0 14 0 13 0 13 0 10 0 178 0 01

41 44

2 46 2.08 1.63 1 50 1.50 1 47 1 45 1.44 1.3Y 1 34 1 33 1 24 1 2 1 1 1 0 1.08 1.07 0 98 0 97 (7.81 0.80 0.80 0.79 0 76 0 73 0 64 0.61 0.56 0 54 0 5.3 0 53 0.32

81



(Cur rency - VSD) A l l securi t ies a re o rd ina ry unless otherwise s ta ted

Kuinber ul % nf hires o r Dtwxptimi Couriln Trading blnrkct net

Taw value code currency value asse:>

135.000.003 1 85,670

1.045.172 149.559 148,7:8 142,093

15~7,000.000 139.657 1.3:,905 126,673 1 00.000 120,088

1.020.000,000 118.462 98.700 98.806 04.064 98,750 96.1 59 91.153 86.32.3 8;,468

1317,000 80.000,000

7~70.000.0L!O 72.119 69 .300 63,422

65,000,000 56,414 54.822

2017.000 4W07 4:3,15 1 42.258 .t0.000 29,637 25.899 2:,181) 4.1100 2,000

530.000 250.000

4,Y00.(!00 100.000 71.334 70.000

16

l00.000 100,000 100.t7L70

/15/13

Govcrnmehl Bonds (continued! Korea Trcasui?- Bond. 4 50%. 0Y/09/08 FILL%, 5 00%. 01/01/20 Kingdurn ul Su.crlcti. 3 5 0 % , 12/01/15 FNYLI. 5 00%. L)5/[)1/18 FhMA, j,00%. 04/01/20 FHLII. 5.50%;, 08/01/33 Kvrca rreasur) Bond. 3 7%. 0Y/10/07 (ili\M. 3 758. (18/20/2? GhhlA. A R M . 3.70%. 09/20/29 FNi4MA. 4 50% 04/01/19 V.> Irr;rsur) h i d . 6.25?0, 08/15/23 FliV.4, 5 50'5. 0 Y / O l / l O Indonesia Recapital L<orirl. 14.2758. 12, I ~ I l L ~ l . 4 50%. 09/01/18 Gh.11.4, 5 30%. 06/1i/34 F N W . 5 00%. 01/01/20 LNh.M. 7.00?". 03/20/32 FHLMC, 4 50%. i)Yi)l/LL) FPiilM. 4.50% 04/01/19 T h M A , 5 517%. 12/01/32 FNhtI. 5.508. 06/01/34 I-t1I.MC.. 4.70%. 01/01/iY Republic uf Singapore, 4 000h. 03/01/07 Krrrca Ti-easuiu- Ruiid. 4,50%. 09/03/116 1rirlo:itwa Rcchpital Bond. 13 15%. 03/15/10 FPi.ihN. 6.50%. 02/0:/18 Kcpublic of Peru, FRK. 4.50%. D3/0:/17 +

FHI.MC. 7.OWX. 03/01/19 Korea Treasury Uunrl, 4 75?0, 03/03/07 G3MA. 6.508. 0Y/lY32 GNbL4, 6.50%, 11/15/32 Guvernmeni or llalaysia. 4.032%, 09/15/09 FHI .\IC. h.OO'X, 08/(!1/17 GKMA, SF, 6.00% 03/15/33 FHLhl. 5 50%, Oh/O;/iR Go\crnment of Canada. 3 25%. 12/01/116 GN4L4, 5 50%, 07/13/33 G N M A SF, 5.00%. 03/15/34 FHLMC. 4.508. 11/01/18 Fkpublic ul Peru, 9.875%, 02/06/15 Go\cmrneiii of Mala)-sia. 7 50'X.. 07/13/11

TOTAL BONDS

DEHIVA I IVES Government Bonds 1'

TOTAL UtKIVATIVES

Treasur) h u w . 5ep 05 Future

TOTAL TRANSFER4BI.E SECURI~IIIES DEALT IN ON ANOIHER REGLLATED MAKKET

TFANSFERABLL 5KI;RITIES NOT ALIhlII-I El> 10 A N OFFICl.\L STOCK EXCLIANGF LiSTING NOR L X - 1 L 1 IX O N ANOTHER REGL'I_.\I I:I) MARKET BONUS Corporate Bonds Uyrvgk Holdings liic , 144.4. 10.125,Xx.. 07/15/13 Chesapeake Energy Corp , 144A. 6.3758. 06/15/15 Calpirir Corp . 144A. 8 50%. 07/15/10

~ 1 0 1 A I . BONDS

IOlAL TRAYSFEMBLE StCLKITIFS NOT ADMlTltU TO AN OFFlClAL SlOCK FXCHANGE LlSllNG NOR DEALT IN ON ANOlHtK REGUI ATED M A R K t l

l!SA

KKW I!5D SEK l!SD L' s 13 KSD K K W I S D C:sL) I.'SD

I!SD IDR C!SD E D LSD LSU l;SD US13 L!SD C!SD I!SD SG D KRlV IDR C: 5 D lJSD USD K K W l!SD

MKR LSD t:SD L!SD CAD USD C:SD l:SD LSD usn

c m

c!su

I S D I S D l.t 111 L!SD US17 CAD

b D

191.03s 187.907 160.018 151.398 150.525 144,24Y 142.545 140.665 133.429 126.235 123.652 123.386 12 1.543 118.1759 100.024 99.997 99.194 98.4C7 95.827 92.538 87.5P1 81.191 79,713 77.891. 77,336 75.102 65,4P9 64,1?8 63.62Y 58.999 57.333 53,987 50.691 33.573 43,400 32,863 30.309 26,139 21.117 4953 2 . 3 3

16,221,717

547.537 252.005 120.502 99,556 71,366 57,298

1,148.264

0 i 2 0 51 0 $3 L! 41 0 41 0 39 0.39 0.38 1736 0 33 0.34 I! 31 0 33 0 32 0 27 0 27 0.27 0 27 0.26 (1.25 0 24 0.22 0 22 0.21 0.21 0.20 0.18 0.17 0 17 0 16 0 16 0 15 0.1'4 0.12 0 12 0.0y 0 08 0.07 0 06 d.01 0.01

44.01

1 49 0.68 0.33 0.27 0 i9 0.16

3 12

32.645.035 88 57

6,375

6 375

32.651 410

0.01

0.111

88.58

L:SD 113,500 0 31 LSL) 103 000 0 28 CSD 77 500 0 2:

293.000 0.80

294,000 0.80

2c)4,000 0 80

39.934.283 9T.49 TOTAL lNVESTMEN.1-S

t Floating kircs dre indicated as at ]uric 30. 2005

82

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Mutua l Beacon Fund -


(Currency - USD) A l l securi t ies a re ord inary unless o t h e r w i s e s t a l ed

fiuiiibttr of (6 of h r e s or Description (:ountl). Trading M arkei ne(

face \ d u e C U C k currency value assets

TRAN5FFRARLE SECURIT1I.S AL)hlII~i~ED TO A\ OFFICIAL STOCK FNCHASGE LISTING SHARES Aerospace & Defence horthrop Gniininaii Coq? L15.4 3.839.875 0.20 69.500

165,029

271.893 6-t2.500 2 1.3 ,ti2 4 260.400 59.590 10.900

96,145 196,780

8.800 14,924

1.216.300 579.204 119.700 187,700 47.152

1,341.900 272.642

78.640

444.900

57.575

449,500

902.900 300.000 126.435 65.300

146.200 12.170

73

500.000 .320,287 25.5.68.3 204.81 1 135.200 100.200

17.720

142,985

LSD

5.368.056 0 28 Airlines ACE .4\-1auon tlulrlings Inc

Beverages Carlsberg AS, R Diagco FLC Hei*ickeri t luldirig NV, A Coca-Cola E n q m s c s Inc Rroxn-Furman COT . B Carlshcrg AS. A

C.4 N

DNK GRR NLD M A USA DN K

CAD

13.952.854 9,472,734 5.958.081 5,731,404 3.602.81 2

517.762

0.72 0.49 0.31 0.29

0.03 0.18

DKK GBP EUR L!SD I!SD L)KK

39.235.647 2.02

Capital Markets Ber Sicnrns Co? . lric lrish Life B Perinancril PLC

u sr\ IKL

LSD EUR

9,993,311 3.459.633

0.51 0.18

13,452 .944 1769

0.26 K O 8

5,118.117 1,534,024

CI II: BE1

CHF EC: K

6.652.1 39 0.34

Commercial Hanks Allied lrish Ranks FLC Rank uf lreland BKF Fanhas SA Danskc Bank Asloria Finmcial Cvrp

1 3 5 0 48 0 42 0 29 0 07

LL!R EI!K EUR

26,167,117 9,346,739 8,212,221 5,646.774 1,342,417

50 715,268

DKK L!SD

2 til

0 30 0 24 0.1 1

Commercial Services & Supplies integrated Alami Sewices Insun Ent Co.. Ltd Republic 5enTices lnc

USA KOH L!SA

7,890,941 4.730.714 2.111527

12.733.282 0.65

Communiutiuns Equipment Ech,>Siar Communications COT.. A

Construction Malerials Cimcnts Francais SA

Containers & Packaging icrnple-Inland Inc

Diversified Financial Services Renigro 1.td Uraxm CUT.. A Leucadia Y\latio!ii C.rrrp. Forus Group N V London Stock Exchange PI .(I

Coindisco Holding Co.. lric sdirfi1 SA

13.413,735 0 69

0.2Y 5,622 ,00 1 EL!R

16698,925 0 86 1!SD

14.262.024 11,460.289 4,884,184 1.81 1.760 1,287.281

846.725 1,222

0 74 0 5Y 0 25 0 09 0 07 0 04 0 00

34.553.484 1 78

Diversified Telccommuniratiun Services Ccsky Telecom AS T e l ~ e s t Global Inc. Chunghw rclt.com Co , Ltd.. ADR MCI Inc. Verizon Cummunicatioiis lnc Bclgacotn SA

C7.K L!SD I!SD c: 5 L7 I S D

9,343,916 7,296 138 5 479,287 5,265,691 4,671,160 3.425.071

0 48 0 38 0 28 0 27 0 24 0 18

1 8 3

0 08

EUR

35,48 1.263

1.579.781 Electric Utilities E OS i lG

Food 6r Slaples Rehiling Krogtr Cu

IWL! EUR

2.721.005 USD 0.14

83

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Mutual Beacon Fund -


(Cur rency - USD) A l l securi t ies are ordinary unless o therwise s t a t ed

hurnbcr or shares 17r Description

b e e value

Food Products Orkla APA hcdt . SA CSV N\T GrwLipc Daiiuiic Cadbury Schweppcs FLC Fanner R r o h r s Crr l!nilcver PA. 0.00%, pld

1OK CHF EUR FGR LRP I:SD EUR

L!SD

USD l S D

1!513 L!SD

I S D LSD

FUR

USD I:SD U5D l!SD

I!SD IlSD l:SD USL? LSD

usi)

I!SD

I:SD

C! 5 L1 ELR EC!K

LSD USLl L'SD L!SD USD LSD LSD c: 5 L) L'SD L!SD USD FL!R

31 616 729 17.496.4RY 14 210 540 13,238,974 5 665.587 1.344.504

9.874

I 63 0 30 3 i 3 0 68 0.29 0 07 0,017

857.329 68,375

559.300 1517,590 593.356 60,400 81 ,600

29,868

282,5017 175.100

5i.60.t 38.400

2115,309 6.955

142.900

39.776 66.330

274.700 595,007 306,980 127,100

86 6.716

24.735 5.900

80.000

1 7g.600

164.501) 138.DOO

2.753

4.240.32: 797.900 753.200

1,155.600 17.082

126,608 H6.280 71.300 37.500

191.773 54.000 38.6R2

83.582.697 4 30

041.439 0.05 Oil Q Gas Yorthwestern Cvrp

Health Care Equipment &I Supplies Hillenbrand Inclu>tries I r ~ c . Guirlarit C u m

14.280.375 11.784.230

0.73 0 61

26,064,605 1 3 4

Hrdllh Care Providers & Services Kindred Healthcare Iiic kighbnrcarc Inc

2.167.610 1.273.728

0 11 0.07

(7.18 3.431.338

Hotels, Restaurants 6r Leisure Tniin Entcrtainrnrnl Ktwns Inc Harrai.s Entcrtainmcnt Inc

L!SA USA

2.792.202 501.247

0.13 0 03

3.293.449 0 17

Industrial Conglomerates Slenrcns AG

Insurance Berkshire Hathaway Inc.. 1% \Vhite Mountains Insurance Group Inc Hartford Financial 5ervict.s Group Inc. Old Repuhlic International CO:~. Saletv Irisurarrce Group hic. Prudential Financial Inc. krkshire Hailiaway Iiic . A

1PC Holclinp Ltd Muritpelier Re Holdings Ltd

4llcghany C:nrp.

L1LL 10.443.657 0 54

110.716.496 41.847.59T 20.532.066 15,047,727 10.363.645 8,345.386 7.181 .DO0 1.994.652

980.001 204,022

5.70 2.15 1 .06 0.78 0 53 0.43 0.37 0 10 0.05 0.01

217.222.592 11.18

2,813.600 IT Services S u n p r d Data Systems Inc.

Ikisure Equipment & Producls hlattel Inc

Machinery Y A K ( > Iiidustnes Inc.. A Kurit. Ci:rrp. Cargowc Corp

I.: 5 A 0 14

0.17 USA 3,286,680

17.637.690

76.732 8.252,950

U SA FIN F1N

0 91 0.43 0 00

25.967372 1,34

$3,208,871 24.679.047 24.181 504 18,697,608 14,263.983 8.662 5,9 4,210.464 3.49 7.9 78 2 904.750

2 22 1 2 7 1 2 5 0 96 0 74 0 45 0 22 0 18 D 15 0 09 0 08 0 04

7 65

1,727.692 1.617.30k7

831.851

148,593,567

84

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Mutua l Beacon Fund -


(Cur rency - USD) A l l securi t ies a re ord inary unless o the rwise s t a t ed

Nuiiiher or shares or Lkscrip~iun

lace \.aluc Cuuritry Trading L d F currenc!

m or Markel net

valuc a w t s

654.100 221 , I 39 818,047 286.400

1.221.600 2,363.300

45 1.600 340.300

1.075.800 154.501

1.1 47.100 153,000 YD,000 85.904

135.300 83.S00 44,700

341.200 25,150

5,200 9,315 9,327 3,662

100

193,400 261.80@

20,200 158.800

3.300

808.100 917,550

i 6 , i ~ a

llO.255 63.700

110,800 110,000 131.700 168,201)

270.900 992.743 108,100 277.042 486,294

137.100

11.100

73.81717

2.088.850 961.334 132.290 143.960

hlcials & Mining Ncamont Mining CUT. Impala Platinum Holdings Ltd Anglo hiencan P1.C I:reepurt McMorm Copper ~ Gold Inc . B Ciainnion Lake Resources Inc Irwrnauonal Ko)alty Corp. ;in ,Silver Mines Ltd.

Cocur DAlene Mines Corp. Miual Steel Cu I i V , li Y. shs , Keg D Eldorado Gold Corp Placer Dome hic. Ranick Gold Curp. Goldcorp Inc Harmony Gold Mining Co , I.id , ADR Gold rlelrls LKI, Grrldcorp Inc Kiu harcea Gold hlincs Ltd Noranda Inc Consol Lnergy lnc, Nurmrla liic , 6 UOB, pld.. cvt N o r d a Inc , 6 25%. pkd.. C ~ I

Nurmrla Inc , 6 506, pld.. ci-1 Anglo Anicncan P1.C. ,ADR

1 amis Gold I . K .

25,529.523 10,822,820 19,183,166 10.722.816 8.126.430 6,944,641 6,204,984 5.827.683 3.905.154

3,043.078 2,341.646 2.252.700 1,366,639 l.lS8.168

965 658

3 , 6 6 ~ , a w

702 :2 10 548,660 433.160 278,616 237,321

118,322 2.350

236,855

1 31 1.02 0 99 0 55 0 42 0 36 0 32 0 30 17 20 0.19 0 16 0 12 0 12 0.07 17 06 0.05 0 04 0 03 (7.172 0 01 D.01 0 01 0.01 0 00

Oil 6r Gas Canadian Oil Sands Trust Suiimr Energy Inc I uta1 SA, u BP P L c HP PLC AUK

CAD C.4D ELR GHP USD

123.720.454 6.37

14,223.607 12.377,321 4,749,059 1.652.833

205.854

0.73 0 6+ 0.24 0.09 0.01

33.208,674 1 7 1

Paper & Forest Products Weyerhaeuser Co. Fotlatch Corp

51.4.35.565 48.015,391

2 65 2 47

Personal Products kiersdorf AG

Pharmaceuiicals Takcda Fhaniiaceutical C:o , Ltd S,inoli-A~cnus 1Vveth Asiellas Pharme<eutirel h r . Plizcr Inc Valcani Fhariiiaccuucals lnieniai~u~~al

Kcal Estale iStar Firimcial Inc. New York Morigage Tnisl Inc I i l f St, Joe Co litar Financial Inc , pkl llunebanc COT.

Road & Rail CSX Curp

Semiconductors & Semiconductor Equipmeni Sainsuiig Electronics (3.. 1 . ~ 1

Software Veriias Sohwrc Ccrrp

Thrifis & MOrtgdge Finance H ~ d ~ o i i City Baiicorp Inc. Rank Mutual Corp Smcrcipi Rancurp Inc. First Niagara Financial (;roup Inc

DEL FUR

J P N JPY FR4 EllR LlCA u m JFN J PY

L! 5 L1 USA USD

. . u SA CSD

USA U5D

KOR KRW

99,350.956 5.12

1,80~,118 0.09

5,470,972

4,930,600 3,761,277 3,632 286 2,965 366

5.233.505 0.28 0.27 0.26 (3.19 0 19 0 15

1 34

11,266,731 9.004.179 8.814.474 7.143.528 4.420.412

40.649.324

5,848.686

7.338.284

0 58 0 46 0 45 0 37 0 23

2.09

0.30

0.27

0 09

2 3 ,833,776 10.632.354 2,955,359 2,128.097

1 2 3 0.55 0.15 0 11

39,549,586 2.04

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Mu tua l Beacon Fund -

SCHEDULE OF 1NVESTMENTS AS OF JUNE 30, 2005 (continued)

(Currency - USD) A l l secur i t ies a re o rd ina ry unless o therwise s ta ted

.-.. . . .

liiutnber or shares or Description

lace value Cuunti? Tradiiig

code currency Market

value

Tohacco I l r i t ist i Arntmc;i:i 1 i.rha<ctl P1.C Reynolds Amencan Inc. ,4bLd15 SA K T k G Coip . GDR. 144.4 Imperid Ttobaccc Group P1.C K T k G COIF Alma Gmup Iric. Rrirish Amencan Tobacco F K . ADR

L.%O,907 553.000 667 .Y 10

1.088.660 733.812 377.450 222.74;

10.200

1171.753

138 42

9.187

62,305

28,426

8.900 116.478

217,297

6.5176

l36,DOD

7.163

8,792 143.400 79 5.900

41 3.71717 279.800

6: 3.323

13,669

2.94 2 24 1 43 1.11 1.02 0.75 0.71 0.(!2

USA USL) 43.5T6.400 FSF FUR 28.019.166 K O R LSD 21.533.695 GBR C;BF 19.758.145 KOK KRW 14:6&623 1!5A I:Sn 14,302.821 GBR LSD 30 5 .Y 64

199.458.960 10 26

1.344.553.169 69 20 TOTAL SHARES

WARRANTS Mcldls & Mining (;oldco;p Inc.. warrants , 05/30/1)7

TOTAL WARRAN.IS

DEHIVATIVES Health Care Providers & Services Kindred Hcahhcm Inc , 23 75 calls. 07/1T/ll Kindred Hcnlthcare Inc , 26 calls. 01/01/12

c4t3 265.782 0.01 CA h

267,782 0 01

0 00 0.00

C:jA Lj.4

1.915 489

2.404 0.00

TOTAL DERIVATIVES

TOTAL TRANSFERABLE SECURITIES ADMITTED .IO A N OFFICIAI. STOCK EXCHANGE LISTING

2,404 0 00

1.344.821.355 69.21

TRAYSFERABLE SECI!RITIES DEALT IN 09 A2NC1THER REGULXED MAKKL I SHARES Airlines ACE A\iation Holdings Iiic

Capital Markets A B , WaiIcy Grmp Inc

Diversified Telccommunicalion Services AIx~~eKiei Iiic.

Electric Utilities \loriwia Power Co , 8 45% pld. Entegra Puwcr Group L.LC, 144A

CAD

l!SD

I!SD

298,769 0.02

3,738 0.00

681.184 0 04

73.425 0

1!SA USA

I!SD CSD

c) 00 0 00

0 00 73.425

Hot&, Rcslduranls Es 1-cisure FHC Delaware Inc

Industrial Conglomerales Anchor Resources LLC

Insurance jymctra ririancial

Media Pl 'V 1 1 ~ , A. 10 00%. pfd

Metals & Mining Fsiwrk Inc.. 117 00% pld . cvt Co:isol Ei ierm Inc. PIG IKOL. LLC

70.551 0.00 c:5.-2 vsn

L!SD

1!SD

UljD

0 0.00

0.80 c: 5'4 1 S.640.000

14.338 0 00 GBR

8.;92.000 7.736.952

3,478

0 45 0.4D 0.00

u 5'4 L S A I:sA

16.532.430 0.85

0.32 0.21

Real Estate JER Investors TrusL. 134A Fieldslone Investnieni Coip

6,184.815 4.029.120

(!SA U5A

I!SD C!SD

10.21 3.933 0 53

Road Q Rail Flonda East Coast Inclusti-irs Inc.

Semiconductors & Semiconductor Equipmcni Decisionone Curp

TOTAL SHARES

C!SA

USA

25.270.259 1.30

0 00 9,746

68.808.3T5 3.54

86

FRANKLIN T E M P L E T O N I N V E S T M E N T FUNDS - Frankl in M u t u a l Beacon Fund -


(Currency - USD) A l l s ecu r i t i e s a re o rd ina ry unless o therwise s ta ted

Number 01 sharcs or Descripliori

hcc Lahie (:oulltl). Ti-ading

L U d C currcric)

4,356.153 3.543.088 3,993.000 1,839.000 1,669.000 1,815.600 1.325.000 1 .361.500 1.281.000 1.548.067 1,490.732 1.1 18.000 1 ,OS8,000

987.000 Y74.442 828.000 706.000 738,000 920.0017 613,393 582,300 30,388

460,000 434.000 340.0UU 380,000 350,000 261,000 214,000 132 .000 131.000 72,000 62,372 h17,000

590.000 316,000

16.48i 3.060 2 , l O i

533.890 700.000 187.000 999,000 127,000 (i75.000 57,000

43h ,000 252,220

1.135.000 542.01?0

1.31 1.0017 1,461.000 2.365.399

470.000 285,000 577.000 90,000 80.(700

423,000 96 1,000 161 ,000

1.21 5.01717 890.000 70.00~7

322,000 1,015,000

572.000 1,037,000

332.000 579,000

1.733.000 1,363,637

31.0U0 780,000

67.000

BONDS Corporaitl Bonds Owens Coming. Rc\-olvcr. I).@@'% I rump Lnreruiinmen~ Resorts 1nc , 8.50% 05/20/15 Adelphia Coinmunicaiions Corp , 8.1 2 5 % , 07/13/03 * Adelphia Communications C o t p 7.75%. 01/15/09 * Adelphia Cotnmuni(iitioris Cvrp . 9 25%. lCl/31/02 * hlirant Gorp , 364 Da)- Revolwr * Adelphia Communications Gorp.. 10.25%. 06/1 Yi 1 * Armstrong World * Adelphia C~intriiirii~iiti~ins Corp.. 9.3758, 1 1/15/09 * Entcgra Power Group LLC. 4.00%. 06/0l/j 2 Eniegra Power Group LLC. 9 00%. 06/01/20 (:alpine (;encrating Cn., FRY. 1 1 16875?0, f l W l / l l Ceniury Cummunicauons Corp , 0.008. 03/1.5/03 * Adclphia Communicaiions Corp., 10.25% 11/01/06 - Slirani Corp , Tranche C Revolver Adelphia Communications COT.. 10.87S'X. 10/01/10 * Adclphia Communicaiions Corp.. 8 373% 02/01/08 * .-lrmstrong world. 9.75%. 04/15/08 - Century Communications Corp.. 1%. 0 008. 01/15/08 Miran[ Corp , 4 Year Rc\-olver, tlT/17/05 * .-lrmslrurig \\'odd Rank Claim ' kiiegra Powr Group LL.C. 0.00%, 06/01/11 Adclphia Communications C q , 7 875'X. 05/01/09 Armsirung \Vorkl. 7 456. 35/15/29 * Ccntui). Comniunicalions Corp., 8,7316, 10/01/07 - .4ce Aviation Holdings Inc . c\-t , 144A. 4.27%. 06/01/35 Adelphia Cummunic;irions Corp . 111 50%. 07/15/04 * Adclphia Communications COT.. 9.875%. 03/01/05 * Adelphia Cornrnunirauons Cvrp . 7.50%. 01/15/04 ' Cenuiry Communications COT., 9.50% 173/01/t7'1 * '4delphia Communications COT.. 9.873%, 03/01/07 Century Cotnmuriicawns CUT.. 8 875%. 01/15/07 * Entegra Power Group LLC, 0 00%. 06/01/12 Cenlury Corrimunications COT.. 8.375%. 12/15/07 liior:hwesterii COT.. Escrow Accouni. 8.7576, 03/15/12 iXior:hweswrn Curp . tscrow Account. 6.95% 11/15/28 Decisionone Corp , 144A. 12 00%. 03/17/10 Ancior Resnurccs I.1.C. Rank Claim L!niled Cornpariics 1.inancial Corp., Rank Claim l!nircd Cornpdnies Financial C o p , Rank Claim Cumdisco Holding Co.. Inc.. 6.13%. 08/01/01 * Corndisco Holding Co , I:ir . Lscrow .4ccount * Corndisco Holding Co , Inc.. 5.958, 04/30/02 * Corndisco Holding Cu., lric . Escrow Account. 9.50% 08/15/03 * Cumdisco Holding Co , Inc . Escroiv . ~ ~ C ~ > l i l l i , 6 O O B , 01/33/02 * Coiiidisco Hrrltiing Co , Iric.. 6.65%, 11/13/01 Corndisco Holding L o , Inc , Escrow Accnunr. 7 2370. 08/16/01 . Corndisco Holdiiig Co , Inc , 6 3758, 11/30/~11 ' Corndisco Holding Co , Inc , 12/04/01, 364 DAY Rcvolvcr ' Abovenet lnc , Escrow Account. 10.00%. 11/15/08 Abovenet Inc . Esci-om Accounr. 10 0070. 1U15/09 Almener lnc , kscrvw Account. 10.ODB. 12/15/09 Abovenet Inc.. Escrou Accouni. 14.00% 03/05/37 Glubal Crossing Holdings Ltd , 17.00% C;lnbal Crossing Iiuldirigs Lid . 9 50%. 11/15/09 Global Crossing Holdings Lrd , 9 62376, 05/15/08 Global Crossing Holdings Ltd.. 9 127%. 11/16/06 (;loha1 Crosing Holdings 1.d . 6 00B Global Crossing Holdings Ltd.. 7 25% Telewcst COnimunicaiiotis PLC Y 25&, 04/15/09 Telewsi Cummunicatioiis PLC. 5 25%. 02/19/07 ~le lewcst Coniniunications P1.C. 1 1 25%. 11/01/08 T ~ C W F S I Communications PLC. 8 75%, @4/1'1/09 Marconi Corp., Escrmr Account. 2.364%, 05/21/09 Marconi Corp., Escrow Account. 5.625% 03/30/05 Tclewest (:onimuiiicarions PLC, 9 875')1, 02/01/10 !4arconi Curp , Escrow Account. 8 3758. 09/15/30 Marconi Corp . Escrow Acccrunt. 6 375%, 03/29/10 I e h ~ s L Communications P1.C. 1 1 .00%. 10/01/0T Telewcst Communications P1.r. 0 00%, c2/01/;0 Air Candda lnc , Lscruw Account. 7.25% 10/01/07 Air Canada hie.. FscroH Accourit. 10.258, 03/15/11 Air Canada Inc., Esci-ow Account. 0.01 %. 07/31/05

4,944.233 3.476.633 .3,47.3.910 1,599.930 1 ,443.685 1,388,934 1,286.062 1.233.585 1,140,090 1.137.829 1,095,688 1,022,970

978,650 843.885 745,448 724,500 617.750 612,540 -571.335 512,267 460,017 416.470 391.000 347.200 343.300 31 5.607 309.750 225.765 185,110 146.970 123.023 73.800 62.472 61.800

20.540 16.488 3.060

0 0 0 0 0 0 0 17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

38.350

0 26 0 18 0 18 0 08 0 07 0 07 0 07 0 06 0 06 0 Oh 0 06 0 05 0 05 0 04 0 04 0 04 0 03 0 03 0 03 0 03 0 02 0 02 0 02 0 02 0 02 0 02 0 02 0 01 D 01 0 01 0 01 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 170 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 170 0 00 0 00 17 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00

32,390.776 1.67

87

FRANKLIN TEMPLETON INVESTMENT FUNDS - F r a n k l i n Mutua l Beacon Fund -


(Cur rency - USD) A l l securi t ies are ord inary unless otherwise s t a t ed

% of .Markzt riel

value assets Countr) .Iradiiig

code currency

Government Bonds 1.1 lL l l 3 60%. 09/22/06 20,U00.030

50,000,000 28,450,000 23.000,000 14.500.000 14.412.000 10.1100,00L7 7.000.000 5.$00.000 5,200,000 5 ,0110 ,0011 5.0DD,000 5,0017,0(?0 5.000.000 i .0170.17(717 5.000.000 5.000.000 5,000.000 5,000.000 5.000,000 5.030.000 5.0D0.000 5.000,000 $.0170.0170 5 .000.000 4,796,000 3.i29.000 4.000,OOO 3.6R1.000 .3.0i10.000 3.(300.L7(717 3.L~00.000

698.171717 $.417.000 1,3o:.U00

76,000 925,000

1,149 1.353

.3:,664 12,666

28 14

1.02

One Year 39.969.250 28,430,986 25,000,000 14.464,301

9,937.010 6.816.028 5,379.621 5,142332 4,992,090 4,9917,770

4.Y84.275

14.3in.538

4,9n9.+50

4 . 9 7 7 . 9 ~ 4.975.290 4.974840 4,972,599 4,970,820 4,955.733 4,943.1 50 4,934.930

4,922,320

4.727,254 4,704.987

3,649,969 2.9T2,601 2 .Y 57.562 2,931.951

657.178 160.092

2,736 0

3,930.685

3,817.705

3.9in,n+o

46.836

2.57 146 1 29 0.74 0 74 0 51 0 35 0 28 0.27 0 I6 0.26 0.2h 0 26 (7.26 0.26 0 26 17 26 0 I6 0 26 0 25 0.25 0 25 0.25 (1.25 0 24 0.23 0.20 0 19 0 15 0.15 0 15 0.03 11.01 0 00 0 00 0.00

13.41

I~IILl1: 0.00%. 02/111/06

FHLB, 0 m,. i o m 0 5 FHLB. 0.1717%. 08/12/05

FHLB. 0 00'ih. 07/19/05 1-1 II..H. 0 110%. 07/22/119 FHLB. 0 00% 07/23/05 FH1.R. 0 00%. 08/03/05 FHLB. D 00% (38/i9/05 I~IILH. 0.00%. 08/25/05 FH1.R. 0.0I)'X. 08/26/05 FHLB. 0.00%. 08/31/05 I I I u 1 , 0.00%. 179/02/@5 FHIR. 0.00'b. 10/171/05 FHLB. 0 00%. 10/31/05

FHLB, 0 OD%,. 08/29/05 FH1.B. (7 0001;. 01/26/06 FHLB, 0 008 , 09/30/0/05 FH1.R. 0 00'1h. 10/07/05 FHLB. 0 OO&, 1 li28/05 FH1.R. 0 00%. 02/17/06 Calpinc CUT . 8.25%, O W 1 5/05 In imp Ailariiic. :1.25%. 0?/01/06 .Irump Ailamic. 1 29'$. 05/10/0h Trump Atlantic, 144A. il 25%. 05/06/06 Telc\ves; 1,inance Lid , 6 0~7%. 07/07/05

260.359.91 1

312,759.867 l h 10 TOTAL BONDS

W AK RANTS Diversified Telewmrnunicalion Services L\lmveiiet Inc., warrants . 09/08/08 Abo~eNei IIIC., ndrrdiils , 09/08/10

(:SA USA

4,5Y6 1 ,082

0.00 0.00

5.678 0.00

0.07 0 03

Health Care Providers & Senices Kindred Heal1hca'e Inc , wrraiits . Series U. 04/20/06 Kind:cd Healthcare Iiic , wirranrs , Series .A. @3/2@/06

1.4177.T82 597.303

2,005.085

2,010,763

no0 163

963

0.10

0.10 .TO TAl. WARRANTS

UERIVATIVES Health Care Providers 67 Services Kindred Healthcare Inc., 9.07 calls. 01/01/1.3 Kindred Ilealih~arc Inc., 29.99 calls. 01/1/14

IjSA LSA

USD L!S13

0.00 0.00

0 00

0 00 IOIAL DERIVATIVES

TOTAL IKANSFERAB1.T: SECURITIES DEALT IN ON ANOTHER REGULATED MARKET 19.74

88

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Mu tua l Beacon Fund -


(Cur rency - U S D ) All secur i t ies are ord inary unless otherwise s ta ted

TMLiSFER*IBLE SECKRITIES NOT ADMITTED I O A.2. c71:I~ICI.~L 5I-OCK LXCHASGE LISTING kC?R DEALT I N OU ANOTHER RFGLIATED MARKET SHARES Insurance

2,600 Olyrnpu5 Re 1-lulding; L i d

TOTAL SHARES

TOTAL TRANSFERABLE SECURITIES NOT ADMITI ED .IO AN OFFICIAL STOCK EXCHANGE LISTING NOR DEALT IN ON ANOTHER REGULATED MARKET

TOTAL INVESTMENTS

* .Ihe5t. Curpurate Bonds arc currently in default 7 Fbaiing Ra1t.s i m irirlicawd iis iii June 30, 2005

487.214 0.03

487,214 0.03

487 214 0 03

1.728.888.537 88.98

89

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Mu tua l European Fund -


(Currency - EUR) A l l securi t ies a r e ord inary unless o therwise s ta ted

Nuniher of h i r e s or Dewiprion

fJce ialue

%> 0 1

\larkcr ne1 value assets

Counti;\- Trading code ~urrcric\'

Beverages Fenod-Ricard h.4

Carldicrg ,\5, R Heineken I-lolclinp N V . A Cnrlslicrg AS. A

Lhgeo PLC F n4 GRR LJNK K I D DhK

CHE CHF CHE

GBR LIEU IRL

GUK

CHE DEL DEL: BEL

IRI. I'R4 SLVF IRL BEL

DNK

1.1 .-1 DEL!

li1.D

FRA m

ESP

HEI. X1.D LUA 1.M GBR BEL

CI IL SLD .4UT BEL CZL G 3 R

DEL!

KLD

189.371 1,876,027

285.1 31 4i7.870

8.100

117.736 29.958 16.020

375.449 22!3,$55 283 ,9 07 169.014

14.100 11 7.1 7+ 2i1.631

11.542

1.845.231 470.1700 673.600 666.1 11

141.520 121,938

521.100 147.890

18h.418

3.2.880 121.844

316,323

960,621 225,8170 233.871 29.501

198,700 5,035

28.900 68 1.11717 285.000 120,000 200,000

$3,728

212.014

133,056

LL!K GRF DKK FL!R DKK

CHF CHF CHF

GBP E X H EUR GUP

CHF EI!R EUR E1!R

EKR L L K SEK EL:R EER LIKK

LC!R EI!R

EKR

LUK FL!R

EUR

FUR ELR EL!K FL!R GRP EUR

CHF EtiR LLIH EUR C7K USD

L U K

ELK

24,996,972 22859.037 12.092.777 9.631.904

317,984

1 9 1 1 7 5 0.92 0 7+ 0.02

69.898.672 5.34

35 137 91% 9.053.207 8 469,7Y I

2.68 0.69 0.65

Building Products 5ctiiridler Holding AG Schindler Holding AG. Reg D Geberi: AG

52 661 906 4.02

Capital Markets Sctirudtrs P1.C Axed Rank I\(;

Irish Lile &I Peirn;inem PLC Sctirodm P1.C

10.932.498 6.126,439 4.125.1b9 1.735.354

0 83 0 17 0 32 0.1 3

22.919.4TO 1 .:5

Chemicals Giuudan AG I.indc i\G MG Icchnulvgies AG Solvay SA

6,i77 399 6,540,653 2,095.147

080.493

0.52 0 50 0.16 0 07

16,393,692 125

Commercial Ranks .4111ed lnsh Ranks FLC: RNP Paribas 5.4 t,urt.ningssparbankeii AB. A Bank 01 Ireland KRC Rancassurance Holding NV Danske Rank

32.808.207 26.649.000 12.216.853

2.51 2.03 0.Y3 0.68 0.61 0.27

8,883,656 7.962.551 3.518.606

92,038,873 7 03

5,888.430 5,176,150

0 45 0.40

Commercial Senices & Supplies Banca Italcase Iectirm AG

11,064,580 0 85

5.404.258 0.41 Construction & Engineering Imtecti Xb'

Conslruction Maicrials Cimcnts Francaij 5.4 Italcementi SpA

1720 0 12

2.653.4: 6 1.573.006

4.226.422

13.323.525

0 32

Ihiribuiors Comp;inia de I)isirihu<ion Iniclml Logista SA

Diversified Financial Services Foirij Group kiv Euronext S I5 Global. FDR Wcndcl Inwstissement London Stuck E x h i i n g PI.(: S O h t l J SA

1 02

1.68 0.4R 0.22 0 16 0.11 0 02

22.027.040 6.320.142 2,864,920 2.019.343 1,445.907

289,512

33.966,86$ 2 67

7 7 I , (88.798 4.726,834 4,779,950 3,390,000 3,088,912 1.007.736

0.59 0.36 0 35 17.26 0.24 0 08

Diversified .l-elecornrnunicalion Services 5uisscom :\G Koiiinklilke K P h U\. I ekkom Ausrna i\G Bel acom <A Cc%)' T c l k i i A5 Telewest Glubal Inc.

1 88

15,621,192 119 Electric Utilities I. Oh '4G

Energy Equiprnenl 6r Services I~~ugru K \ 2.731.301 0.21

YO



(Currency - FUR) All secur i t ies are o rd ina ry un le s s o therwise s ta ted

%J 01

sham or Description Cuillltr). Trading Market ne1 race \Q~t l t . dt. currenq \ al UT ih>TtS

humbcr 01

Food C Staples Retailing

Bourbon Carrelour 5.4 643.280

9Y .648

1.91 1.189 200.321

477.h817 1.068.410

9YO.YO0 109.738

281.954

143.125 139.1 70 91.306

747.273

405,.300

1.197.376 850

.34,1700

1.429.545 247.2170 443.176

4.829

4,4Y7

1,647,383 (38,480 72.400 44.017 86.940

L.LY2,660 2,183,400

325.300 2,369.000

10.200

4.1710

1,966205 156,900 53.050

124.300 199.100 222.708

IZh.130

FRA FUR 25,795,528 FRA ELR 5.525.482

1 9 7 0.42

3 1.32 1,011) 2 39

Food Products Orkla ASA k d c SA Groupe Danone CSM NV Cadbury Schweppes PLC Richer Son AS.4 L!riilocr &\’, 0.006, plcl

58 239.307 42,363.9 69 20,498,056 12.21 4.277 8,431,098 6,077.746

10,974

4 45 3 24 157 0.93 0 64 0 46 0 00

NOR hOK CHE CHF PRA EUR Y LD FUR GHK GBP YOR N O K hI I1 1:UK

147,845.427 11.2Y

Health Cart Providers br Services Rhoen-Klinikum Mi, pfd OPG Gruep h \ Rhoen-Kliriikum AG

8,201.062 7,806,067 5,227,269

0.63 0.59 0.40

DEI! EUR h LU EC:R DEL! 1.LK

2 1,234.398 1 .h2

Household Durables Hunter Douglas L V

Industrial Conglomeraies Siemens AG

Insurance Catliri Group Wh:w \loutitairi~ Insur;mce Group Inc

30.884.793 2 36 N LD Fl!R

24.481). I20 1.87

0.55 0.04

7,223,990 44.3.1 9 h

7.667.186 0 59

Leisure Equipment C Products Agla Geiaert N V

Machinery Metso OYJ Kone Corp Juiigheinrich A[;, pfd. Cargoicc Cnrp.

ULL EClR 77h.900 0 06

FIN FU R 25,738.958 12,2 17,860 7,906,260

111,236

1 97 0.93 CY60 0.01

t lh EUR DEI; FUR 1.1h EUR

45974,314 3 51

Marine A P Mollcr - hlaenk A/S

Media Pearson PLC KTI. lnc. IC Dccaux SA L V Holdingmaat.cch.lppl) L)c .I elcgi-aaf I lollinger International Inc.

35,489,080 2 71 L)NK DKK

16,036.509 5,569,130 1,516,780

801.110 647.311

1.22 0.43 0.12 0 06 0.07

GRR GllP (JBR LSD FR4 FUR NLD EVR L!L4 L!SD

1 88 24.570,840

Metals &I Mining Anglo Aincncan P1.C Rio Karcra Guld Mincs Ltcl Highlaiid Gold Mining Ltd .4fricaii Flatinum FLC. KGHM Polska Micdz FA, GDR

3.30 0.22 0.06 0.06 0 01

44,432,247 2,902,976

799,486 780.394 171 127

4Y 086,228

4.576.294 Muhi-Line Retail Jcltnoli 1 lolding .4G

Oil & Gas Sta~oil AS.4 Nnrsk Hydro .4SA lutal \A, B Ro+I Dulch Pt.trult.um Co 1:rii Sp.4 BF FLC

0.35 CHF CI II;

33,195.641 11,905,433 10,307.615 6 712 200 4.242.821 1,915,646

2.53 0 91 0 79 0 51 0 32 0.15

NOR NOK YOR NOK 1T.A EUR N LD E L K 1.1.2, EUR

(;BR GRP

68,279,356 5.21

Pharmaceuticals Sarroli-..\\~ntis 8,564,227 0.65 f:KA ELR

91



(Cur rency - E U R ) A l l secur i t ies a re o rd ina ry unless otherwise s ta ted

% 0 1 Markti nci

value assets

Nuniber ul shares or Description

lace \~aluc Crrun; :y Trading

code currency

Specialry Retail hichcapc FLC

hclmarin ;\G Ne5te fill O Y J

GRR GRP Flk EI!R DEL EUR

1.793.777 918,060 183.480

0 14 0.07 0 01

58.900 42.900

-3.300

4.386.721 2.59 2.40 1 1 ,L86.241 2.087.800

12,530,000 10,17017,000 10.c)ou.000

4.6W

2,100

.H74.000 167.759 555.000 b90.000 ,s71,000 323.900 45.000

3T5.000

10,000.000 10,0017,000 10.1'00.~~00 10,0017.000 111.000.00L~ 10.0c10.000 10.~100J717n 10.000.000 10.000.001~

220,1700

35.680 10.494 53,660

9,700 16,900

22h.600 I 6 1

2.895.317 0 21

GBR GBP 69.883.002 GBR GRP 57.689.292 ESP EUR 44593,977 GBK GHP 15.624.913

5 34 4 41 3.40 1.96

Tobacco British Amencan Tobacco PLC: Imperial Tubaccu Group PLC

Ga1l;iht.r Group PLC Ahadis SA

15.!1 197.791.182

1.067.272.667 81.51 TOTAL SHAKES

BONDS Securities Maturing Within One Year Ftdcral Rqxiblic or (;eriii3iiy. 2.50%. 09/16/05 Federal Republic ol Germany, 5.00%, 08/19/05 Gerrni;iri .I reasur) Rill. (3.00%. 07/13/05

FUR 12,510,000 EUR 10.035.500 FGR 9.993.500

0.96 0 77 17.76

32.739.000 2 49

32.539.000 2 49 TOTAL BONDS

TOTAL TRANSFERABLE SECLRII~IES ADMITTED TO AN OFFICIAI. STOCK EXCHANGE LISTING

~IKAhSI~LMBLF SECURITIES DEALT lfi ON AIWTHER RELULUED MAKKEI

1 ,099 ,811,667 84 00

SHARES Medid F-rv Inc . A, 10 ooox.. prcl

k d l Estate Chnaq- M:harl Group PLC

TOTAL SHARES

BONDS Corporate Bonds S e i l n House Finaxe Ltd , 0 00%. 02/07/11 Teleu.cst CurriIliiiriications P I K i (70'L. 11/01/03 klarconi C o q . . Escrow Account, 2.364%. 05/21/09 hlarcuni Curp.. Lscrow Accounl. 8.375%. 09/15/30 hkirconi C.orp , Fscro\+ Account, Bank Claim Marconi Corp . Escrow .kcuunt, kink Claim Mai-coni Curp . L c r w h ~ i i i i , 5 625%. i)3/:30/05 hiarcotii Corp.. Escrow Account. 6 375%, 03/20/10

GBK

GBK

LSU 7.610 11.017

GRP 8,892 0.00

16.5@2 0 00

GBR 1!SA USA I!SA L!PA CiSA USA USA

6,92R.535 0 0 0 0 0 0 0

I) 53 0 00 n 00 0 00 0 00 0 00 0 00 0 00

1

6,928.535 0.53

9.975.500 9 955,500 9 939,300 9 913,000 8.261.508

0.76 0 76 0.76

Securities Maruring W i ~ h i n One Year Gcrnmdn Trcasuq Bill. I? OO'b. 08/17/05 Italy l-reasury 0111. 0.00%. 09/15/05

LC!K EUR EKR

DEL: ITA

0.76 0 63

8.273.316 8,251.781 8,238,773

0 8 . 1 2 8 . 2 7 ~

0 63 0 63 0 63 0 63 0 00

L!SD L!SD USD USD

R1.026.956 h 19

6.72 87.955.491 TOTAL BONDS

DERIVATIVES - Synthetic Equily Swaps Beverages ,411icd LVmiccq FLC. ses . 6.440 LHP Allied Domccrl PLC. w5. 6.360 GBF Allicd Dnmecq FLC ses.. 6 732055 GHP Allied Domecq PLC. >es.. 6 780 GBP Allied Doiiiccq FLC:. ses.. 6.863 GllP Allied Dumecq PI C.. <e3 , F 76 GBP ;\ll~cd Dumccq PI.(:. scs , b.Y.3.396 C;BP

GtlK GBR GNK CiBR GRR GBR GUK

GBF GBP GRF GBP GBF GUP GRP

16.751 6.059 1.497 (556)

(4.38 1) (5,874)

(1 0.668)

0.00 0 00 0.00 0.00 0.017 0.00 0 00

2.828 0.00

92



(Currency - EUR) Al l secur i t ies are o rd ina ry unless o therwise s ta ted

Nurnhcr n l shares cir Lkscripticin

face value

Diversified Financial Services London Srock Exchange PLC. ses , 5.4025 GRP London wock Exchange FL(:. se i , 5:312.3 GBF London stock Exchange PLC:. ses , 5.3447 GBP

8,300 11,r)OO 21.600

ITBR GBP (6,0903 GBR GBP (6,9923 GBR GBP (1 3.70 1)

(26.783)

TOTAL DERIVATIVES


TOTAL INVESTMENTS

0 00 0.00 0.00

0.00

(23.955) 0 00

87,948.038 6 72

1,187.759.705 Y0.72

93

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Templeton Global G r o w t h and Value Fund -


( C u r r e n c y - USD) Al l secur i t ies are o rd ina ry unless o therwise s ta ted

% of llarker IltY

\ - a h aswts Countv Trading

c0tk currency

TR.VSFFRARI .E SECURITIES ADWTTFD TO AK OFFICIAI. STOCK FNCHAKGF i - i s - r ix

Unircd 'Ic<hnologles Corp L1S.A

SHARES Aerospace 6r Ueknce

BAE Systems PLI: GBR 1.800

12.810

1.500 3,8i0

19,549 3,730

1,500 1.6LYI

1.170

2.500 6,000

3.000

12.000

1 .LO0 2,500 1.000 4.000 1,200

1,500 1.280 1.620 1.660 1.170

71 0

10.000 15.000 3,500

16.000 6,000 7,474 4.250 8,450 1.500 2,000 7.000 1.280 3.130

1 i ,400

7,910 2,.500

13,060 710

c: 5 L1 GBP

1!SD ELR

AUD I!PD

EUR 1 FY

EI!R

USD GRF

LSD

! py

LSD I!SD USD GBP CHF

CHF EL: R EUR FVR 1!SD CI11.

AL:n EUR FUR hlXN GUP EUR GRF ELR L!SD EUR 5GL) KRW I I K L ) HKD

GRP SEK GUY CHF

92,430 6 5 , ~ ~

17 61 0.34

1.05 178,292

Air Freight 6r Logislics l!nircd Farce1 Ser\icc Inc , B Lkiwcht. PLW AG

0.69 0 39

103,740 88.975

1Y2.715 1 18

AUS L5A

50.165 47.170

0.33 0 30

95.335 0.63

Auto Components l\liclielin S I . 5 L)emcr Corp.

FIU JPn:

91.38.5 36.439

0 61 0.24

0 87

Automobiles Vulksuagcn AG

Reveragrs FepsiI:~ luc . Ll1agt.o PLC

DEL 53.442

134.825 88.461

0 36

0 90 0 79

USA GBR

1 .$9

Biotechnology G i l d SLHIW~ Inc.

Buildin Products 8sahi Gfass Co.. Ltd

Ca ita1 Markets

Citigruup lnc

hlan Group PLC C!BS AG

Gobrnan Sachs Group Inc

I . cG Mason Inc

[!SA 131.970 0 88

J PN 126.236 u 84

122,424 115.575 104,110 103.6R9 93.618

0 82 0.77 0.69 0.69 0.62

3.59 539,416

154.353 8j,184 63.863 55,477 52,100 39.300

CHE DELI fi LD

[?SA CI Ili

m u

1.03 0.57 0. .t2 1737 0.35 0.26

450.277 3 00

Commercial Banks 51 George Rank Lrd Anglu Insh Bank Corp . PLC Frsw Rank dcr Ocsier Sparkaiwi A(; Gmpo Fmancicro Banurw SA dt. 0. 0

Darico Sanidndcr Cenrral Hispano 51 Srandard C.harlcred P1.C Yordca Bank AB. FDK kink u l .lrncriva Corp. Natinnal Rank of GI-eece S.4 DRS Group I lolrling5 L d Korrkmin Rank HSRC I lulrlirigs PLC Bank of East :\=,la Ltd.

iiuos PLC

199.501 186.1137 175,201 105,699 92.492 86.727 77.639 16,223 68.41 3 67,953 59,361 38.216 50,348 33.668

- .

1 33 1 24 117 0.70 0 62 0 38 0 52 0.51 0.46 0 37 0.39 0.39 0.33 0 22

A M IRL AlT \ lEX GUK ESP GRR 511.E CSA GRC: SGP KOR GBK HKG

1.337.500 R 91

0 29 LI,2R 0 25 0 21

Coininercial Services & Supplies Brambles lxlusrr~i<> F1.L Sccunras AB. B Rentukil lniiial PLC ;\rlec<o SA

GBH SWE GBK CHF

43.361 41.747 37.376 32,348

154.832 1.03

94

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Templeton Global G r o w t h and Value Fund -


(Currency - IJSD) All secur i t ies arc o rd ina ry unless o therwise s t a t ed

humblir ul % of shares or Description Coun:7) Trading Market net

I'ice \.due cude currency Yalue 3SSt'l::

Communications Equipment Juniper lietworks Inc

Computers & Peripherals Seikn Epsnn C o q ~ hlaxtor Gorp

8.000

1,600 4.600

2.500 2.300

3,010

5,344 9.0T0 2,870 3,240

13 2,080 1.970 1.720

9,220 3.180

Y60 90 000

1 .OR0 1.976

12.720

$1717

12.000 3.000

9\10

800

7.340 247

6,200

20.000 1.500 7.000

670

3.000 850

4.330 440

1 ,800 10,380

860

1 34

53.410 23.920

17 35 0 16

77.330 t7 51

Consumer Finance

Acorn Cu.. LLd Airui curp. 186.530

128,293 1 24 i) 86

JPY JFY

J PY J FY

314.823 2.10

Diversified Financial Services IN(; (;roep k V

Diversified Telecommunication Services Telefonica SA Ponugil .Ielt.com 5GPS S A BCF Inc Telefonos de Ilexico SA de C:V (Tehnex). L, tiiguon Tt'lemuti ti? Iclcuhcrnc Curu

85.113 0 57 \ I n EL!R

87.545 86.043 67,937 61.203 5.5,711 49.400 42.355 36.860

0 58 0.57 0.45 0.41 0.37 0.33 0.28 0.25

FSP FRT c.41 MFS JP1

KOR 1 \Z h

usA

FL!R EI!R CAD USD J PY USD USD U5D

i\DR

FBi' Coimnu~1i&lltmx Inc' KT Corp . ADR Chunghwa Telecom Co.. Lid , ADR

487,052 3.24

Electric Ltililies tiatiuiial Grid Transco FLC Suez 5A E.ON ACi I 1u;ineng Puwcr Internatiuiial Inc.. H

89.440 86,306 85.586 66.016

0.60 0 57 0 57 0.44

GBR FRA DEU CHK

GBP FUR EUR HKD

327,348

47.628 32,812 27.118

2 18

0 32 0 LL 0 18

Electrical Equipment Hubbt'll I I I C . , 13 l'estas Wind Systems AS R\ I! co.. L1d . I 1

(!SA LXiK CHN

LSD DKK HKD

107,878 0.72

Electronic Equipment & Inslruments Mibuchl \lotor CCI. Ltd.

Energy Equipmen1 & Services Saipem SpA RJ Sen-ices Co. SBM o r k h ~ r ~ w

28,825 0.19 JFS

161.752 157.440 61,746

1 OR 1 0 5 0 41

EIJR USD E U K

380.938 2 54

Food & Staples Retailing M'hole Foods Markc1 lric

Food Products Ciirlhury Schweppes PLC kes:le SA l!nile\ er PI .C

94,640 0.63

70.085 63.205 59.811

GHK CIHE GRR

GBP CHF GUP

0 47 0 42 0 40

1 2 9

1 31 110 0.64 0 25

3 30

193.101

Health Care Equipment 6r Supplies 5mi.h CL. liephew FLC Synihcs Inc. Gctinge AB. B Llillipcrrc Curp

LBF CHF SFK IJSD

197,417 164.651 95,395 38,009

495,472

Health Care Providers 6r Services LnitedHealth Group Inc Celeslo .\G Tenet Healthcare Corp Amcnsuurrellerpen COT

115.4 DEI! I'5.4 USA

156.420 66,647 52.999 30,426

306.492

1 04 0.45 c) 35 0 20

2 04

0.65 0.29 0.27

Hotels, RESlaUTdnls 6r Leisure Carnival COT Compass Group PLC Accor SA

1!SA LRR FRA

98,190 43.606 40.314

1R2.130 1,21

95

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Templeton Global G r o w t h a n d Value Fund -


(Currency - USD) A l l secur i t ies a re ordinary unless o therwise s t a t ed

QA or Ami or Desc:-iption LuLl11Lr)i Trading h4arket ne1

lace \alLlc L O t k cxreric) value asws

N urniJer or

Huusehold Durables Knninklijke Fhilips Flecr:onics li\' Son? Gorp.

2.870 2,100

b.DDD

3.680 100

10.000 8.000 3.46Y 2,293

860 9L)D

9.896 N D

3.070

500 400

2.i)i)D 5.070 1.290

7.000 8,000 8,000 6.650 5,000 2.Y50 3.680 1.100 1.770

12.326 3,205 1.040

30.000 4.500 1.400

8.000 3,000

11.850 7,680 3,1772 2.000

5,lRO 3.120 1.230

li LD FUR JPY J FY

72,579 72.375

0 49 0 18

144.951 0.97

Household Products Reckill Benckiser PLC

lndusirial Conglomeraies Sinidis Group FLC Siemens AG

GHK GllP 176.815 118

GBR DEU

LBP ECR

60,585 7.308

0 40 0 05

0 1s hT.893

122,061 80.837 67.537 57.349 52.870 52.290

42.149 $8.754

0 81 0 54 0.45 0 38 0.35 0 35 0.33 (7 28

Insurance QBE Insurance Group I . i d . Soiupo Japan Insurance Inc. Riunione Adriatica d i Sicurra Cp.4 ?.\A SA 5v.iss Reinsurance Co American Inwnauunal Group lric AMP Ltd. ACE L l d

.U:S

ITA J P N

!N!D

E l R E L R CI I 1 1!SD ACil3 1!SD

I 'y FRA Ct-IE. I:SA 4US BM1!

523.857 3.49

Internet Software & Services Chcck Puint Sohiwe Technologies Lid

Leisure Equipment 6r Products Lintendo C:o , Ltd. Fuji Photo Film Co., Ltd

60,786 0.40 ISR I!SD

52.328 12.~383

JPN JFN

J PY J R

0 35 0.08

0.43

1.06 17.54 0 35

65.211

Machinery Illinois .lool \\'<irk> I r i L

Atlas Copco AB. A Vulva AU. B

159.360 80.446 52.492

us.4 S\VE SWE

USD SEK SEK

1.95

118.020 94.283 82.335 50.660 47,643 45.725 43.346 30,706 28.639

0 78 0 63 0 55 0.34 0 32 0.30 0 29 0 20 0 19

Media kcu; Curp.. Lul , u h(cdiase1 SPA M'FP G-oup PLC Yell Gruup PLC Anioldo Mondadori Editorc 5p.4 DIRECI-\ Group Inc. Pearson PI .C v s r NV SEWS Corp . Lid. A

c: SA ITA GBR GBR ITA USA GRR NLD usA

541.357 3.60

52,278 40.880 31,223

Mcials k Mining Aluinina Ltd HHP Rilllron FILC .4kan Inc.

124,381 1783

Multi-Line Kelail

Next FLC Target Curp.

rcsLo FI.C 1 1 4 0 81 0 i l

GBR GBR USA

GBF GUP USD

171.306 121.648 76.174

2 16

Oil & Gas Encana Corp Aparhe Curp Shell Traiispm t3 Trarlirig Co.. PI C. RP F1.C Eni 5 I% l u k o i Holdings. ADR

CAh LISA GBR GBR H A RLS

CAD KSD GHP G3P ELK USD

31 5.599 193.800 115.218 79.936 79,2:1 73.660

2.10 1 2 9 0.77 0.53 0.53 0.49

857.424 i 71

Paper & Forest Products Stnra Enio O Y J . R Sorske Sko irirlu5mcr ;\SA, A Irilrrri;rlion:f Faper Co

1) 44 0.34 0 25

Flh NOR L!SA

66.251 5 1.443 37,158

151.852 1 03

96

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Templeton G l o b a l Growth a n d Value Fund -


( c u r r e n c y - USD) A l l secur i t ies a r e o rd ina ry unless o therwise s ta ted

Nurrrber ul shares or Descripiion

C;lCt. \ i l lUt .

% of lilarker tiel

value assets Cuunlp Trading

code currency

Personal Pruducls .4von Products Inc. ESIEC 1mdt.t Cos , Inc , .4

3.000 2,500

7.000 1.200 1.1792 6.440 1.150 2.050 1.690

400

29.000 16,000 12.786

10

22.900 7.500

177

1.200 3,0171) 3.900

25.1700 2.270

690

30.000 2.200 3,500 1,530

3517

2,500

.3,000 9.0i)0

25.140 17.200 1 ,880

5.036

0 76 0.65

l?SA USD 113.550 L'5.4 I S D 97.825

211.375 1.41

1 45 1.01 0.60 0 47 0.38 0.33 0 28 0 13

4.65

Pharmaceuiids Tev3 Pharinaceulicnl Indusine, Lid , ALW Kochc Holcling .4G Sariofi-A\ cnlis Shire Fharmaceuucals Gruup 1'LC A b h t t Laboratoiies GlaxoSinithKline PI .C BtisdXIycrs 5quibb Lo. Takcda Fhannaccurical Co., Lid

ISK CHF FR.1 GRK GSA GRR l!SA J P N

217.980 15 1,849 89 71; 70.606 56 362 49\61 5 41 216 19,848

698, 193

Real Estate 5un Hung Kdi Prupcrues Ltd hlitsui Fudosan Co , I.rd Swirc Pacilic Ltd . A

1.31 1 20 0.75

HKL ] Pli

HKG

HKD J FY

HKD

197,533 179.718 113,120

490.371

51.425

208 848 205.205 84.522

3 16

Road 6r Rail Fast lapin Kailway Co

Semiconductors & Semiconduclor Equipment Tai*an Serniturirluctor Manufactuniig To.. Lid , ALIK Analog Devices Inc. Sanisung Flt.c'lroriic> Cu . Ltd

0.34 IPV JPY

TVA GSA KOR

USLI USD K R W

1 39 1 3 7 0 76

3 32 498,575

Software SAP .K Trend Micro Inc.

209.523 106.911 102,420 100,201) 40,746 11.502

1 39 0 71 0.68 0 67 0 17 0 08

L C K J PY L!SD GBP

Cognos lrrc,

Synupsys Inc

Tht. 5igt. Group PLC B M C Sofinare Inc

3.80 571.311

217.158 134,772 119.980 45.548

Specialty Retail Esprit Holdings Fasrenal C o C1iico.s FAS Inc Ohct.M;!x Inr

1.45 0 90 0.80 0.30

51 7.458 3 45

Textiles, Apparel & Luxury Goods Funra -\G Thrifts & Mortgage Finance Countqxide Financidl Corp.

Wireless Telecommunicniiun Services Amcnca Muvil SA de (3'. I., ADR TeleConic;i hiuviles 5.4 Lhiiia hlohile (Hong Krrrig) Ltd. Vodnforre Gruup PLC SK Telecom Co.. Lid., ADR

86,690 13.58 L7EU EL'R

96.727 0 64

1.11) 0.63 0 62

0 26

2 98

0 18

i 7 n . ~ ~ 95.069 93,658 41.906

ME); ESP

(31.2, GBR KOK

LISD EUR HKD GHP I:SD 38 351

447.815

TOTAL SHARES

IOTAL TRANSFERABLE SECURITIES ADMll IED TO AN OFFICIAL STOCK EXCHANGE LISTING

13.922.403 92.70

1.3.922.403 92 70

TRANSkLMBLE 5ECI:RlTIES D t A L l 1 1 Oh ANOTHER REGLilAI-ED .M.ARKET SHAKES ~ ~~~ ~~~~~

Compuiers 6r Peripherals Coirpal Flec'trcrriic5 Inc . GDR. Reg S

TOTAL SHARES

TOlAL TRANSFERAB1.E SECURITIES DEA1.T IN ON ANOTHER KEGULATED MARKE I

XOTAL INVESTMEN.1-S

T W N CSL1 25,029 0.1 i

27.029 0 17

25,029 0 IT

13.947,432 92 87

97

FRANKLIN TEMPLETON INVESTMENT FUNDS - Frankl in Templeton Japan Fund -


(Currency - J P Y ) A l l secur i t ies a re ordinary unless o therwise s t a t ed

humber ol % ur shares cir Description Count? .I-iracling kkirkct . k l , >

racr cude currencj value assets

TLISSFERARLE SECUKITILs ..\l)?vl I-TTFD TO AN OFFICIAL STOCK EXCtMhUGL: LIS l l h G SHAKES AUIO Components Denso Corp Sumiturnu Rubber Industries I.td Tokai Rika Co.. Ld.

J PN

JPN JFY

J Fti JPN

JFY J P N

J Fti

JFN

JFU J F u

J PN J P N J PN JFN JPN

JPN JPN JPN

JF?I

JP?"

J PN J FY J P l JPN J FN

29,500 7 1.000 8.000

55.500 171.000 45.000

8.3170

60.200

11 3.000 15,900

152.000

297 143

7.1711~7 10.000 10,1700

79 5,2170

4

30.640

106.000

5,000 7.600 6.200 5.300

1 IO .lo0

78.000 110,000

10.000 20,000

22.500 25.i)OO

3.000

74.487.5(30 35 092 OC0 14.576.0C0

1.43 0.68 1728

124.1 55.5C0 2 39

220.335.0VO 50,958,000 49.410.0V0 45.401.000

4.2-t 0.w 0.95 0.88

Auromobiles Toyota Motor Corp l ~ t i z u Moiors Lid Nissan Irlotor Co . Ltd. Hoiirla Motur Co., I.rd

366.104.000 7.05

Capital Markets Yoniura Holding5 Inc.

Chemicals kissan Chemical Indu5lrirs tiirro Dcnko C:oip. Dainippon Ink and Chemical5 Inc.

1 54 79,885,400

134,922,000 101.124.000 53.960.000

2 . m 1.94 1 .04

290.006.000 5.98

222.750.(700 134.563.000

R 897.000

4.19 2.53 0 17 0.16 (7.1 3

Commercial Banks Sumitomo Mitsui Financial Group lnc. hlhubishi T1okj.o Financial Group Inc The Chuguku Dank I . l d The Fhgoshinia Bank Ltd. T!lc 7: h n k . Lid

6:os0.000 6.830.000

38!.(190.000 7.34

0.33 0 36 0.05

Cummercial Services & Supplies Fullcast Lo.. Ltcl Bencssc Corp. Japan ERI Co.. Ltd.

22,199.000 18.512.000 2,896.000

43.607.000 0.84

89.777.200 1 7 3 Communications Equipment

Construction & Engineering Hascko Corp.

Consumer Finance Onx COT. .Iakclujl Coq'

sdn><> Shinpan Finance Cu . LLd kissin Co , Lttl.

Ustn Corp

AiM L01-p

25.016.000 0.48

83,20(1,000 57.000.000 51 ,274,0011 ft7,.386.000 22,900,800

1 60 1.10 0 99 0 78 0 44

254.760.800 4.91

81,900.000 24,640,000

1.58 0 4:

Disirihutors \lltsul & Lo.. Lld Chori Cn , Ltd

JFY IPN

106 540 000 2.05

17.810.000 16.820.000

0 34 0 33

1)ivcrsified Telecommunicaliun Services Aiphonc Cu . Ltd l ~ U J I l 5 U Access L:d.

JFY J P N

34.630.000 0 67

Eleclric Utilities Tohoku Electric Poucr Cn , Inc Ilukutiku Flcciric rower Co.

JFY JPN

53.2 12,500 52.875.000

1 .I)2 1 32

10h.OH7.500 2 i)4

Electrical Equipment Nidec Curp. JFY 0.90 46,060,000

98



(Cur rency - JPY) A l l secu r i t i e s a r e o rd ina ry tinless otherwise s t a t ed

N:imbyr ol ?" lid shares or Dcscriprion Country Trading hlarkcr net

code currcnc) d i e ask'ts [, .. l l C t valile

Electronic E uipment 6r Instruments lulurara Manilactunng Co., Ltd. Vatsushiia Flecinc 1ndus:rial Cu , Lrrl TDK Corp. lbidrri Cu., Ltd Yainaichi Elccrronics Co., 1.~1. Chiyoda Integre Co. Nihon nempa Kogy Lo.. Ltd tiitto Kogyo coqi. Tomita Electic Co.. Lid

17.200 57,000 11.800 21.300 10,100 5,000 4,000 5,300 1,000

017

8.600 3.400

1 T0,000 86,000

12,800

2 1 .no0

1 1,600

295,000 60i.000 300,000 22,000 25,000

145 2.800 4.100

Z0,hOO 58.000 60.t700

163.000 90.000

134,000

34 5.5170

135.000 74.000

230.000 130.000

30.800

J Ph JPK JFK I Ph JPK J P k JPY JPN JPY

IPS

JPh JPh

97.180.000 Q5 931,000

h1.083 000 15 099,500 13.500.000 11.610.0017 7 573 700

495.000

89 20n,000

1 3 7 1.85 172 1.19 0.29 0.26 0 22 0 15 0 01

7 56

Energy Equipment & Services Inpex Corp

Food & Staples Relailing Mat>urnutokiyoshi Co , Ltd Ito-Ynkado Cn , I.rd

56.520.000 1.09

25.972.000 12 512.000

38 484,000

51.000,000 26.144.000

0 50 0 24

0 74

17 08 0 51

1 49

0 28

1 817

Food Products blamdai Food Co , Ltd \lamha Group lriL

JPN JPN

J PY J FY

77,144.OO0

14.681.600 Health Care Providers & Services KlC Corp

Household Durables L!rban COT.

Household Products Fand Corp

Industrial Conglomerates Suinitoiiio H m y Inrlustrics Lid Kawasaki lieax Industries Ltd The Japan SiccYWorks Lid. KO o Sciko Co Itd TJ l ~ ~ i d , ' - Lo . - Ltd. ' -

JFfi

Y3.522.000

J PN 51.504.000 0.99

3 03

1 74 0 63 0 3u

2 48 J P S J PN J Pfi

JPK J Ph

157,235,000 128,865.000 90.600,OOO 32.670.000 19.675,OOO

429.045.000

54,Y 5 5.000 26.3$8,000 17.835.000

1 1 Services NT7 Dora Curp Otsuka Corp Soh.%ank Cvrp

1 06 0 5 1 0 34

JPN JPS JPK

I py J FY J PY

99,138.000 1.91

Machinery THK Co , Llrl Kubota Coip Tsuhakimuru Chain Co Toyo Kanetsu K.K Sakai Heax-) Induitnes, I.rd

47.174.000 35,164,000 31 .O8O,OOO 26 8Y5.000 26 280,001)

0.91 0.h8 0.60 0 52 0 50

166,693.000 3.21

Marine Kawsaki Kiscn Kriisha Ltd

Media So-net M3 Inc Ctmral Spurts Cu.. Ltd

88.1 72,000 1 70 J P N J PY

27.200,000 12.01 7.500

JFfi I Ph

J PY 1 FY

17.73 0.23

0 76

1 .49 1 09 0.84 0.52

39.21 7.500

Metals & MininR Llairio Steel Co.. Lid. 5urnitomu Metal hlimiig Co.. I.td Sumiloinc Metal Indu5tncs Ltd. Kobc. Steel Ltd.

J FS JPN

J PK J Ph

77 500.0t70 56 314,000 43.700 000 27,17t7,000

203.684.000 Multi-Line Retail blarui Co.. Lid J '1 Jf'l 46.036.000 0 89

99



(Cur rency - JPY) A l l securi t ies a re o rd ina ry un le s s otherwise s t a t ed

Nuinber ol or 5ti.irt.s oi Dcscripiion Countr)- Trading hlai-ket ncl

lace value CUIlC currt.nc-). Lahe assets

Oil & Gas Shrim<l Shell Sckl)u K K Tonen(;cncral Sekiyu K.K N1ppon 011 Corp

4b.000 32,1100 5n,1100

111,000 10,000 $,11@0

146,dOO 344 224

88 31)

34.200 13,800

8.400 i7,nofi

15,000 72.0170

160,000 3a3.000

14

100,000

206 319

2

JPY JPN Ir’N

]Ph J Pli JPk

JFN

JPh J Pli

JPN

! Ph

JFY JPY J P N !Ph

JPN JFN

I Ph J P k

JFR

J PN

J P N J PN

5 1 .17h0.0(!0 50,400.0L‘O 43.674.0CLl

0 (38 0.97 0 n+

145,134,000 2.iY

Pharmaceuticals Hisainitsu Phamiaceutical Lo , Inr Kissci Pharrnactwrlial C.0 , Lid. Tsuniura 6z Ct7.

0.57 0.41 0.15

58.744.0CO 11.3

1 47 I 38 135 0 46 0 24

Real Esrale lukbu land Crrrp Recrm ksearch Co , h d Kenedix hic. Creed CUT K.K DaVinci .Ad\,isors

76,358,000 71,552,000 70.336.000 23.T60.0Nl 12,302,000

254.408 000 3.90

Semiconductors & Semiconductor Equipment Tokyo 5eimitsu Cu., Llrl XFC Flcctronics Corp. Towa Gorp. &licroriir5 Jdpan Co., I.td

153,216,000 74.000.0(’0 13.777.200 13,020.000

2.95 1 42 0 27 0 25

254,013,200 4.89

52.350.000 [email protected]

1.01 0.76

Specialty Rerail L:rii1t.rl .Arrows 1.1d BhlB Corp.

91.950.000 1 7 7

Textiles, Apparel & h x u r y Goods ‘I uho Tenax Co . Ltd I!nitika Ltd

85.Y20.000 52.471.000

1.66 101

2.67

lubacco Japan Tobacco Inc

Trading Companies & IJistributors kliisuhishi h r p .

Wireless Telecommunicatiun Services KL>L)I Co:p STT DoCohlo Iiic

20.i20.000 0 40

150,800,000 2 917

105.678.000 5 2.3 1 6,01717

2.03 1.01

3.04

96 63

96.63

157.994.000

TOTAL SHARES

TOTAI. TRANSFERABLE SECUKLTIES ADMITTED TO AN OFFlClAL Si-OCK EXCHANGE LlSTlNG

TRAXSFERARLE 5LCLKI I‘IES DEALT IN Oh AKOTHFR REG1:IiTED MAIIKt l SHARES Autumobiles 1K C n . Ltd

TOTAL SHARES

TOTAL TRANSFEKAULE SECURITIES DEALT IN ON ANOTHER REGULATED MARKET

TOTAL INVESIMENTS

5,018,232,900

7.018.232.YO0

0.05 JPY 2,540,000

2.540.000 (7.05

2.540.000 0.05

5,020,772.900 96.68

100

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Asian Growth Fund -


(Currency - U S D ) A l l secur i t ies a r e ord inary unless otherwise s ta ted

% ur ncr

assets Market share5 ur Description C'mnty Trading

face \aluc L O d F currcric) d u e

Number ol

TR,\liSFFRARI.F SFCURITIES AZL).MIl ILL) 10 .4N OFFI(L4L > I O ( . K EX(:H!\S(;F LISTISL SHARES Airlines 1 hai Airu.+s International Public (10 , Lid.. fgn IIIA 9,606.500

2.053.574

86.445.000 106.663.000 21,504.882

210.200

12,931.066 180.1417 745,863

1.074.490 999.690 622,200

47.233.900 47.984.700 46.967.000

636.100 30,262.000

202.032.000 9,097,600 9.082,OOO

17,508.960

4,874.010 1,230,400

139,790

5.341 .100 8>534>000

390.110

i)2.000

1,346,000 37.030,300 52.830.900 6.973.000

14,032.800 938,046

7.353.000 8.09C~,000

35.975.355 13,776.000

352.978

0 48

0.14

THB Y ,809,904

H K I ) 1.991.159 Auto Components Weifu High-Tnhnolugy C.O.. Lid . 13 Automobiles Denndy Moti.irs Lid. Bnlliancc China Automotive Holdings I .id Chongqing Ctkingari Automubile Cu.. Ltd.. R .lata hlotors Ltd

CHU

C11\ CHN Cl-lh IKD

llKL7 3D,86Y.837 HKD 18.942.11 3 l lKLl 11,844,371) INR 2,172.870

1 5 0 0 91 0 57 0 10

3 09

1 0.5 0 75 0.49

Beverages San 4liguel Coip , B Hite Hrewry Co.. Lid. Kook Soon Dang Ci? , Lid

FHI. FHP KOR KRLV KOR KKM:

21.715,412 17,532.61 3 10.057.795

2.29 47,305,820

39.261.210 10.679,909 15.21 6.685

Chemicals 1.G Chem LkI Samsung Fine Chemicals (10 , Lid 1.G Petructreniical Cu . Lid

1.90 1 00 0.74

KOR KRW KOR KRW K O R KRW

75.1 57.804 3.63

62.39 1 586 54,574 250 30,915,916 17,032,354 15,658,105

Commercial Banks Kasikombank Puhlic Co.. Ltd , Ign. SMIII Cummercial Rank Public Cm. 1.td.. Ign Mepa Financial I ld&igs Co , Ltd. Hana Bank FT Rank Dnnarnun

THA ~ I l l U THA THB TM!N TWD K(3K KRM; IDS IDR

3 02 2 64 1 50 II 83 0 76

180.572.221 8.75

Computers & Peripherals Cdl-Cninp l:lertronics (Thailand) Fuhlic Co . 1.111 Lite-On Technology Corp. Coinpal Fltxrruriics lric Kinpo Electronics Inc

16,719.890 10,454,700 9,017.487 8.402.090

0.81 0.50 0.44 0 41

THA THR .TWN T\VD TNY TWD 1-ws TWD

44,594,167 2 16

5.55 0.38 0 36

Construction & Engineering H!wndai De\-elopnicnt Co. Hung Koii Aircraft Engineering Co.. Lid Daelirn Jus t r ia l ~o

KOR KRW IlKG HKD KOR KK\V

114,488.587 7,916,766 7,486,095

6 29

Construction Materials Slam Cement Public Co.. Lid.. Ign Anhui Conch Cemenr Crr , l.td , I I

31,277,585 7,961,999

1 51 0.39

THA THB CHN HKD

1 90 39.239.584

Consumer Finance L(; Card Cn , I ttl.

Containers & Rckaging Yvulchun Chemical Co., I.td

Diversified Financial Scrvicrs 1.G Corp Kiatnakin Finance Public Cu.. Lid.. lgii Kational Finance Fuldic Co.. Lid , Ign Shanghai Industnal Holdings I.td Tisco Finance China hlerchanti Holdings (Iriterri;ruonall Co.. Ltd

0 63 KOR K K W 12.975.567

KOR KRW 1,156.1 14 0 Oh

1 66 1 1 0 0 79 0 66 0 42 (3 09

KOR KR\; THA THR THA TliD (.Hh HKD I 11.4 THB CHN H K I )

3+.219,136 24.738.349 16.363,836 13.594.517 8.659.078 1,822,773

99.397.78Y 4 82

Diversified .Kelecornmunication Services VTech Holdings Lid. Chu.+a .lelecom Co.. Ltd.

17,641.1 78 16,397.096

0.86 0.79

34,038,274 1.65

Electric Ltilirics Guangdong Electric Power Devcloprntm Cu , Ltd.. B Datang Intemarionnl Pvwr Generation Cn , I.id . I 1 Shenzhen Lanshan Fnwer Statiuri Co.. Ltd.. B

17.499,610 10.+59.396

29 1 , I 64

CHS HKD CHh HKD CHli I IKL)

0 RS 0.51 0.01

1.37

101



( C u r r e n c y - USD) Al l securi t ies a r e o rd ina ry unless otherwise s t a t ed

liumber (or oh or sIi3i-e~ or Lkscriptiori Countr\. Trading Market net

lace \-slur code currency value ilbSt'15

Electrical Equipment Poongsan Corp

Electronic Equi men1 6r lnslrumenls Inielligeni Digitay Integrated Secuiity Cu., Ltd. jahwa Electrunic5 CCI , I d 1)vlia Eltxlrrrnics iTh3iland! Public Co . Ltd

2.420.960

946,778 l.l-t.t.950

20.48Y.YOO

13,5717,731 6,W8..3;2

602,770 22,152,000

5,772,088 20.480,750

2,076,6170

RL5.600

9,463,881 7.281.91W

486,080 646.680

1.1Rt.924 2,860,700

494,230 2,128,200

8 , j 36.1700 5.920.000

4.887.542 456.740

26.509.900 8.893,ROO

106.124.000 3.RR1.765

31.846.000

9,755,900

366.830.000 173.992.00c)

2,217,020 4,432.300 2.67535:

61 7 .Y4 1 2.312.200

155.586

KOK K R I\! 27.965.677 1.35

0.53 0.43 0 43

KOR KRlV KOR K R W THA THE

10.890.YZ1. 8.986.945 8.875,238

1 39

40,215,226 12,801,844

1.95 0.62

Foud & Siaplcs Remiling Dain- Farm Intcrnatiunal Holdings Ihd Presiclmt Chair1 Store Corp

53.017.070 2.57

2.17 0 55 0.71 0 47 0 07

Food Products

People'! Food Holdings Ltd Kuala Lumpiir Kcporig R h d I.'SI-Fresident Enterprises Lorp Thai h i o n Fruzeri Prrrducis I .id.. Ig1l

CJ Corp KVR CI I N MY s

SS.R65.433 11.428.il4 10.404.948 9.634.196 1,394.450

77,727,741

.IWh THA

3 7:

5.326,YU 0 21 Oil 6r Gas h i 1 India Ltd

Hotels. Restaurants 6r Leisure Kangwun Larid InL, Tanlong PLC

IUD I k R

63.R62.193 2.5.103.392

3.0Y 1.22

KOR MYS

KRLV MYK

88,965.585 5.31

8,410.664 3.856.951 3,567,934

363.428

Huuschold Durables \+'oongJin Cuwi) Co.. Lid Iians5erri Co.. I.ld

KVR KOK KOR

KK\V K R W KRM! THB

0.41 0.:n 0.17 0.02

0 78

Haatz Inc. t , incy Wood Industries Public Lo.. Ltd. 'I'HA

16.198.987

Household Products I..(; Household C;. Health Care L t d 1 Iinrlus~ari 1 c \ e r Lid

KOR IND

KRW INR

19.5R7.6ih 8.008.591

0 95 0.39

27,596,247 1.34

0 63 0.41

13,028,632 8,495.760

lnduslrial Con lomerates > M E Darby Ilh!. iingapore TechnuloRies I3igint.e ring Ltd

MY 5 5;GP

MYR SGU

21 524 392 1 04

2.15 0.43

KOR KOR

41,457,970 8.763.9 35

53.221.904 2 5R

Media RFC b'trlorld Public Co . Ltd.. rgri C A N (;rainin!; Public Cu . 1 .td

THA I 1 1A

TH R THB

7,441,376 2.711.721

0.36 0.13

10.133.097 0.49

L $6 0.60 0 38

Metals -k Mining Aluminum Corp ol China I.ld.. H Yational ,4urnitiurn Co.. 1 .d Tkcnons Woi-ldwirlc Groups (Thailand) PLC

HKD INR THE

39,065,131 12.473.435 7.783.293

79,311,862 3.84

1.123.729 hlulti-Line Kelail Kvbiriwn Department Store Public Co.. I.td , fg11

Oil & Gas China P e m h x n Gr Ctiemicd Corlo.. H t'ctruChlns (3.. Ltd , H SK Coip.

1 Ii~irlustan Fcrrolcuiii COT . Ltrl 011 ?g Uarural (;as Cor , Ltrl Fetronas Lkigarigan RhR IBP Cu , Ltd.

FTT Public CU . L t d , rgn

THR THA 0 05

h 9R 6 25 5 69 1 14 0 02 0 70 0 12 0 08

143.978.008 128,711,475 11 7.440.982 23,596,031 18.861,334 14.50R.6t3 2.53 1 .I5 1 1,666.264

CH u C H I KOR THA IhD IhD MY'; 1ND

HKD t1KD KRLV I I I B INR 1YR MYR ISR

451,326,998 21 87

102



(Cur rency - USD) A l l securi t ies a r e o r d i n a r y unless o the rwise s t a t e d

Number of sharc5 or Description

face \aliic C:ounll? Trading

code cui-rex) Market

\dlUt'

224.887

1%2.921.910 41,SY 1.400 a2.367.300 u.22a.00~

325,990

3.744.000 8,238,573

10.986.8i3 376.091 84.045

120.730.000 4.846.33d 9.7Y7.000 7.080.1100

295,000

44,229

255.980 33,453,300 22,938,190 20,672.500 3.657,000

452.362

8.357.115

Pharrnaceulicdls liovartis India 1.td

Real Estate Land and Houw Public C:o , Lid , fgn :\mala Gorp Public Cu., Ltd , Ign. Sarisin P1.C Shanghai Forte h i i d Co , H

Road 6r Rail Cor:rainer Curp ol India Ltd

Semiconductors & Semiconductor Equipment McdiaIek Iiic. Faraday TechiioloH Curp. Sorilx Icchnulop Lo.. Ltd Elan Microclccirrrnics Corp l ' a i w n Semiconductor b1anufac;;ning Co.

Textiles, Apparel & Luxury Goods Tack Far Group 1nvrn;ruonal Lid

Tainaii Enierpriws Cu , Ltd. Lee and Man Holding I i d

Your1gonc Co1p

Tobacco

Transportation Inrraslruclure L>redging Corp of Indid I.id

Wireless Telccommunicalion Services SK Telecum Cu , Ltd Shin Corp Public Cu., Lid. lgii. rainaii \lobile Co , Ltd Smartone Telecoi~irnutiicaiiuti~ Iloldings Ltd Maris Commutucaiions Rhd

KI-QG COT

TOTAI. SHARES

RIGHTS Diversified .Telecommunication Services True Coq'. Public C.O.. Lid., rights.. 0 0 tN . 03/28/08

TOrAl. KIGHTS

TOTAL TRANSFERABLE SECURI l l E S ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TRZhS1,LMRLE SE(:LRlTIES DEALI IN ON AtiOl I IkR REGULATED MARKFT SHARES Health Care Equipment 6r Supplies Microlife Corp

TOTAL SHARtS

TOTAL TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKEI

TOTAL INVESTMENTS

INK

TH R THR THR I IKL)

I N R

1 \VD TLVD T W I T\VD I M:L)

HKD KR\V TM!D HKD

KRW

IKR

KR\V l l l B

TbT) HKD .MYR

2,590,015

24 209 398 11.758.990 6,099 .O67 2.144.128

44,211,783

6.898.466

32,446,030 1581 3.899 13,284.814

242.742 146,200

61,933,685

15.380,904 14.967.641 12,851.313 1.1 20.650

44,320,508

11 39.057

'b of iiet

iissets

0 13

117 0 57 0.30 0.10

2.14

0.33

1 5 7 0 7: 0.64 0.01 0.01

3.00

0 75 0 7 3 0.62 0.05

2 15

0 56

488,884 0.02

45.03+,66$ 31,264338 23.618.342 22.745 2%3 9.334.974

131,997,561

THA I I I B

2.014.402.375

0

2 18 1.52 1 1 5 1 lI! 0 45

6 417

97.59

0 00

0 0 00

2.011.402.375 YT.5i)

T\Vh TWD 1 1,730.856 0.57

11,740,856 0.57

11.740.856

2,026,143,231

17 57

98.16

103

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton China Fund -


(Currency - USD) A l l secur i t ies a r e o rd ina ry unless o therwise s t a t e d

SHARE5 Air Freight & 1.ogistics Sinutrans 1 .td , H

Airlines Air China 1.1~1 , H

Auto Components Cheng 5hin Kubbcr Inrlusirb Co . L.id M'cl lu Hii$TechnoIo?- Co.. Ltd , B

579.814 1.858.330

q,360,000

11,231.1 36 468.t)OY

1.611.72O

1.744.381 22,3Tj.000 2,617,640

3.653.631

lL1.84R.512 8.184.609 8,936,300 5.758.960

893.750 809,945

1,433,615

1,00$.000 lti7.000

3.1 06.000

2.031'.000 [email protected] 3,533.000 3.804.000

696,684 2.201,000 7,612.953

991.312 13.632.000 1.125.000

522,000

23,644.000

25 .002 .001! 9.661.276 2.452.000

SR8.01~17

5,747,872 2.998.472

3,125,060

l.!Wr)01

CHN

CHr;

TVP4 CHN

CHh

GBR T \ W T W N

-rwi

TM:N TWN TW h TWr; .T\Vh T\VX .I \VN

CHh CHti

TWh

HKG CHN CHN CHN HKG I IKG Th7 i CHK HKG HKG CHX

CHN

CHK CHr; CHN CHN

T\VN HKC;

TLVii

HUG

1 lKL1

IIKL)

TWD 11KD

I IKL)

HKD TWD .I'\VD

i W D

TWI) TWD

11% 0 TWD -1-vv L1 T\VD

I wr)

I IKD HKD

T1I'D

HKD HKL) HKD HKD I-IKD HKD TWD HKL) CHk HKL) H KD

H KD

HKD IiKD HKD I IKU

I\\jD 1!SD

TWD

HKD

0 12

0.66 3,161.816

2 62 010

12.605.1 11 474 892

1.72 1.3,080.0@3

887.697 Automobiles Chungqiriy, Changai Aumiiohile CO . Ltd , 13

Commercial Banks HSRC Holdings FLC Mega Financial Huldirip Cv.. 1.d ChinatrusL 1,inanilal Holding C k Ltd

0.18

5 85 3.07 059

28 059 704 14.728 295 2,851,100

45.639.099 9 51

Communications Equipment D-Link Corp.

Computers & Peripherals Acer Inc Deli3 Electronics Inc Li:e-C)n Icchnolvg) Corp Kinpo Electrunic3 Inc Asusiek Currrpuier Inc Ad\,antech Co., Ltd Phoenixkx P w e r Co.. 1.1d.

4,302.461 0 90

4 46 2 65 2.14 0.58 0,52 u 40 0 32

21.40i.904 12.700.033 10.269.339 2.763.382 2.522.533 1.917.7R6 1,541,108

53.120.085 11.07

0.19 0 01

Construction Materials Anhui Conch Ceincnt Cu.. Lid.. H China Kescrurces Cement

936.706 35.889

972,595 0.20

4,520,492 0.91 Uist ributors Syinex - r & ~ l d ~ ~ g ) Init~national Corp

Diversified Financial Services Cheung Kong Holding3 I - r d i h l n a Resources Enterprise Ltrl ClTlC Facilic Ltd. ShanEhai Iridusrridl HoldinRs L:d

4 12 3.55 2 15 i.55 1.49 1.37 1 1 7 0 30 0 38 0.32 0.15

1Y,T88,3:6 17,017,443 10,343,238 7.416.254 7.172.281 6.556.960 5.624.092 1.926.335 1.806.876 1,749,058

732.198

79.933.131

Guoco Group Ltd Cheu1ig Kong Inlraxucturc Holdings Ltd. Yuaiita Cure Pacilic Securities Co China h k n h a n i s Holdings (Interiiaaurial) Cc . I.ld Shen:hen Investmen1 Ltil 1 lenrlcrsun Invxiiiient Ltd Re ipg Enterpnses Huldirig5 Lul

16.65

177 Diversified Telecommunication Services China Teleconi Carp., Ltrl . I I

Electric Utilities Huadian Power Ink~rrauonnl Cm-]>.. Ltd., H Gu;mgdong Electric Power Dcvelupmenr Co.. Ltd.. B Damig International P u w r Generarinu Co , Ltd.. l i Huanerig Puncr Iniemaiimid Inc , ti

8.519.428

1 47 17 98 0 39 0 09

7.078.299 4,699.566 1.861.676

431 3u4

14,070,845 2.93

11,323,353 8,275.793

Food & Staples Retailing Prcsiclerir C h n Sirrre Coq>. L)air\ I ami Inicmanonal Holdings Lld

2 36 1 72

4 08

0 31

19,599.1 36

Food Products C'NI-Presidem Enteipixs Coip

Hotels, Restaurants & Leisure Hmig Kong tk jhmghai Hotel< Ihd

1.470,036

1.241.314 0.26

104

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton China Fund -

SCHEDULE OF INVESTMENTS AS OF JUNE 30,2005 (continued)

( C u r r e n c y - USD) A l l securi t ies a re o rd ina ry un le s s o t h e r w i s e s t a t ed

‘fi of Market net

\ .IlUt. asset5 (:ounlr) Trading

cude currcnc)

2.1 01.000 8.144,UOO

2,738.000

15,307.142 6,128,000

2.534.000 540,000

31 ,230.000 5c).l78.000

1,944,000 2.040.000

252.500

5,<126.183 2,327,490 2,3 l i ,000

868,103 I ,Y 17.696

14.336.300

2,538,306

2.750.000 579.000

9.948.000 9.4509 39

1.403.000

T\i7;N TWD 2.381.244 CHN HKD 1,519,628

0 49 0 32

9 81 3,900,872

IT Services lrd\rekky Technolop Ltd.. H 0.48 C.HS I I K D 2,325,460

13 985.6Yl 3,414,657

1 T,400 346

606.528 300,547

907,077

23.1118 476 19 694.486

Machinery China Intrrtlaucrrral Marine Containers Co.. I . id , R Yurig .I-ay Engineering (10 , Lrd.

2.92 0.71

~

3 63

0.13 17.06

Metals & Mining China Oricnlal Group Cu.. L~cl Aluminum Corp ul China Ltd . H

CHN HKD CHY HKD

0.19

4.82 4 10

Oil 6r Gas PetrKhina Co.. Lid , 1-1 China Pemuleum &r Cheniical Corp.. H

CHh HKD CH I\r HKD

42,802.962 8 92

Real Estate Hung Kong Land Holdings Lid Hang I.ung Grvup Ltd I lenderson China Holdings I . t d

HKG I!5D HKC, t iKD HKG CHN

5.454.450 3,622,770

242,074

1 1 4 0,75 0 05

9,319.294 1.94

Semiconductors & Semiconductor Equipment Taiwan Scriiir uritluctor Manufacturing Co jiinplus Technology Co , 1.d Siliconware Precision lndustrics Co., 1x1 Faraday Tcchrwlugy Curp Elan hlicroelectronics h r p

10.308.846 3.277.223 2,280,284 1,666,319

976.748

2 15 0 68 0 48 0 35 0.20

18.509.420 3.86

Textiles, Apparcl 65 Luxury Goods Tack Fat Group lri[t.rriatiunal Ltd.

Trading Companies & Distributors Test-Rite 1n:crnational Co , L t i

Transportation Inftiaslrucmre Hupewell Holdings Ltd Hainan k i l3n Inwmdiiurial Aiiport (10.. Lid , H

0 41 HKC, HKD 1,953,794

TWN 1 \VD 1.803.059 0.38

1.47 9.07

HKG H K D H KG CHN

7.060.0.39 331,566

7.391.605 1.54

Wirclcss Telecommunicalion Services China h l d c (Horig Kung) Ltd Tdiwn Mobile Co.. Ltd.

7 72 2 03

37.060.888 9,726,933

9.75 46.787.821

404.199,6iO TOTAL SHARES

IOI-AL TRANSFERABLE SECURITIES ADMITTEU TO AN OFFICIAL STOCK EXCHANGE LISTING

TR4NSI’LMBLE 5EC:I;RITIES DLAL-I Ih

SHARES Commercial Ranks R a d uf Coininunica1ions. Kty, 5

TOIAL SHARES

TOTAI. .lRANSFERABLE SECLHl~IlES DEALT IN ON ANOTHER REGLLArED MARKET

I O I A L INVESTMENI S

ON ht.1OTHF.R KLGULXED MARKET

84.21

84 21 404.199.670

HKD 505,530 0.11

505,530 0.11

505.530 0.11

404.705.200 8+.32

105

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Eastern Europe Fund -


(Cur rency - E U R ) A l l secur i t ies arc ordinary un le s s o therwise s ta ted

4; or Marker !ie[

value assw

iMI\;SFFRABI.F SECI!RITIES ADhlIIILL) IO AN OFFICIAI. STOCK EXCtL4hjC;E LI5TlhG SHARES

A\Iov32. GDR KLS Automobiles

361.S100

953.507

:3.852,000 2,752,377 3,300.(!00

357,949 654.976

4.4172.938 1.05 1.001

3,054,490

11,573.293 10,705,380

1,71O,Yl2 191.509

l.YO2.750

823.297 17.435

5.658.505

3,906.489

2.359.307

4.649.850 30Y.786 31 7.255

2,162.000

5.701.860

1,146.200

2.209.640

t: I.! R

TRY

HUF FLN I RY

PI .K FLti TRY TRY

GRF

PLN HUF

TRY FI:R

SEK

PLN PLY

I'KY

PLY

TRY

USD HUF I ILF

L!SD

TRY

L!SD

L!SD

7.039.9D0 0.85

Building Products 1rak)a Can1 Sann)ii A S

Chemicals Rorsodchein RT C:iech 5A Pt.tkirn Pt.trokim!,i Holding iL5

TU R

I I U Y FOL TL'R

2.665.503 0.32

4 18 2 24 1 45

35.485.570 18,529,512 1 1.99; ,445

66.006.536 7 97

38,627,340 22,047.099 21.332.358

5 026.846

4 66 2 66 2 57 0 h l

Commercial Banks I h G Bank Sleski 5.A BRE Bank SA Turkivt. Is Rankasi AS. C Akhank

POL POL T U K T1!R

87.033.633

Consumer Finance Pruvidcnr Financial FILC

Divrrsikd Telecommunication Services Tclekmiunikacja Polska 5A MaKyar Tdrkom Ltd.

GUK 32.470.083 3 92

FOL HLX

59.294307 37,800,947

7 16 4 56

97,095,462 11.i.2

1 1.052.556 2,269.301

1.34 0 27

Food & Staples Retailing Migros Turk T.A S Jcrunimo Miruns 5GFS SA

T1!R PKT

13.32 1,937 1 6 1

3.32 Internet & Catalog Retail Onflame (:usmctics, 1L)K

1'1 Senices Techinex 5A Prukutn Soft\rarc FA

S\VE 35,817.469

3,203.100 422.898

POL POL

13. 39 0 O S

3,625,998

11,809 304

32.874.010

0 34

1.42 Media Ihgaii Ta)-iii Holding

Metals & Mining KGI I M Polskn \lied2 SA

TUR

3.97 POL

27,991,072 3 38 Oil & Gas Tupras-Turkiy Pctrul Rnlineleri 115 n! R

5.93 4.54 3 87

Pharmaceuticals PIIU 1.1 D. GDR. Reg 5 C;cdeon Richter Ltd Egis RI

HRV IiL!K H1!K

49.1 11,860 37,664.224 32,085.642

118 861 726

60,125,312

596 738 055

14 34

Wireless Telecommunication Services hlubilt. .It.les!steins. ADR

TOTAL SHARES

TOTAL TRANSFERABLE SECLRIIIES ADMITTED TO AN OFFICIAL SlOCK EXCHANGE LlSl-ING

TRANSFEIUBLL: SI-CLRITIES DEALT IN ON AKOTHER R E W L 4 T t L ) MARKET SHARES

RU5 7.26

72 02

596,738,055 T2.02

Airlincs kirk Hava Yollari Anvnim c7ruakligii. 144A

Metals 6r Minin Mining and Mc~i\urgi:lc~l Co. Norilsk liickcl. AZDR

26.740.234 3.23

56,883,993 h 86

8 11

:8 20

18 20

67.166.053 Oil & Gas Lukoil liulrlirijis ADR

TOTAL SHAKtS

TOTAL TRANSFEKAB1.E SECURITIES DEALI IN ON ANOTHER REGULATED MARKET

150,790,271

!50.790,271

106

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Eastern Europe Fund -


(Currency - E U R ) A l l securities are ordinary unless otherwise s tated

TRAhSFERABLE 5EC:L'RITIES SOT AD.2111~1 LLI TO AN OI~I'ICIAL SlOCK EXCHANGE 1.ISTlh'G \OR DEA1.T Ih Ok AkOTHFR RFGUI ATF.D RIAZKKET SHARES Commercial Banks

28.910 Sberbank KI: IOTAL SHARES

.I-OTAL TRANSFERABLE SECCRITIES NOT AI)MIITEU TO AN OFFICIAL STOCK EXCHANGE LISTING NOR DEALT IN ON ANOl-HER REGCLATED MARKET

TOTAI. INVES~TMENTS

LSD li.Y24.46$ 1.92

17924.464 1 .r)2

15.924.364 1 9 2

763,472.790 92 14

107

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Emerging Markets Fund -


(Cur rency - USD) A l l s ecu r i t i e s a re o r d i n a r y unless otherwise s t a t ed

humbei- U T shares or Description

I , . . I . L l C t r a Ut Couritrr I riidirig

code currency

TIUN5FEftlULL: SLCC!RIIIES ADMITTED TO Ali OFFICLqL STOCK L K k I A h G L LISIIIiG SHAKES Airlines Thai Airways International Public Co , Lid , Ign. THA THB Cathay Pacific Airwms 1.td HKG HKD 4ir China I.M.. H C H I HKD

1 ,277,700 315.000 737,000

8,8i)8.094 90,800

1.443.501)

145.014 3,847.871

143.600 50.750

2b0.L)97 93.300

108.330 44.600 29.440

129.870 175,260 100,iYt) 37,300

278.66s 32!).1 00

13.366.103 61.005

548,944 371.439

3,813.500 30,486,100

505.931 2 ,0Y 8.000

105,600 SR.300

1.220.000

4.1765.784

5 563,500 2.204.118 1,407,988 1,379.000 2.200.000 1 .OL 1.680

174,760 7,800

443.000 2,532,000

27,570

197.255 76,2017

1304,754 573.iR6 248.959

0 19 l? OY 0.04

0 32

0 48 0.13 0 12

Automohiles Demray Motors Ltd. Tala Motors Ltd Chongqirig Changdn .Auirrinohilc Co . Ltd.. R

CHN I h D CHli

HKD I N K HKD

3.177.543 887.731- 705,046

4,860,330 0 73

8.638,484 6,161,811 4.437,LW 4,375.930 3,709.561 3.194.831 3,l OO.02.3 1.210992

749.542

1 2 9 0 97 0 66 0 b5 0 56 0 48 0 46 0 :u 0 11

.LIE>; PHI BR4

35.878.414 5 36

4,745.371 3.211.758 2.460.055

418.004

0.71 0 48 0 37 0 06

Chemicals 1.G Cheiii Ltd. Sanisung Fine Chcrriicsk Co.. I.:d LG Pctruchcm~cnl Co.. Lid. Rorsodchcm RT

KOR KOR KOR HI:N

KR\V KRW KKLL' H1;F

10,835,188 1.62

Commercial Banks Banco Uriirlesco SA. ADR. pld U M

KOR I Wh

L:SD KRW TWD

9.862.061 8.812.053 8,798.2118 6,365.867 6,131.523 6.023.135 5,260,000 3.024.634 2.966.0 17 2.386,110 1.895.520 1,865.346

631.290

1 37 1 32 1 31 0 95 (1 92 0 90 0 79 0 45 0 44 0 36 0 28 0 28 l? 09

Hana Rank Mega Findncial Holdings C:o , Ltd Bank Austria Creditanstah U T

7AF GRR THA

EUR LR IIKI.) THB

Nadchank Group Ltd HSRC Holdings PLC Kdsikombank Public Co . Ltd , Ign T M B Darik Public Co.. Ltd.. fgn. Turkiye Is Bankabi AS. C Srarrl Cvrnmercial Bank F'ublic Co . Lul.. fgn. Banco Latinoamtiuric de Fxportaciones SA, E Unibanco Lriiao de Rancos Rrasileircls 5.4. GLlK P T Rnnk Danamon

I t i A TUR THA PAh

THB 1 KY THR USD L!SD IDR

un4 IDS

64.02 1.725 9 56

0.71 4.787.806 Coinmunications Equipment LI-Link Corp

Computers & Peripherals Lire-On Tcchnulugy Curp Delta Flcciroiiics Iiic Acer Inc Benq Gorp Lcnuw Group I.ld Kiripo Flecironics lnc.

6,394 564 3,420,123 2.778.193 1433,474

6 5 l . l i l 490.277

0 96 0 . 5 ; 0.41 0.21 0.10 0.07

TWD -1Vv L) T\VD 'r WD HKD .I\VLI

15,167,782 2 26

6.454,005 417,709

Construction & Engineering H y i d a i Development Cu. Dnclim Industnal Cu

KOR KOR

KRW KRW

0 97 0 06

1 03

0 39 0 35 0 13

6871,714

2,594.216 2.362.290

851,336

Construction Materials Slain Cement Publit Co., 1.1d . fgn Anhui Conch Cement Co . L t d , I I Titan Ccrnmr Co

THA CHN GRC

THB H KD ECiK

5.8177.842 0.87

l? 38 0.38

Consumer Finance Pro\ idem Financial I'LL LG (:ard CU.. I .td

GUK KOR

GRP KKW

2,537.201 2,533,862

5,071 .Oh3 0.76

108

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Emerging Marke ts Fund -


( C u r r e n c y - USD) A l l secu r i t i e s a r e o r d i n a r y unless otherwise s ia ied

kumbcr of shares or Description

lace value

7; h u n t n Trading Market net

code CLirTCllC). value assets

1,453.900

799.3617 806.700 269.000

2,948.000 1.334.365 4,963.772 1.620,000

362,000 56,578

161,679

1 ,488,235 4.141,428

327.862 1.414,200 2.225,000

372.453.800 5.3 16.OC)O 1,758.848

3.838.490 593,190 778,109 9Y ,000 6.721

12.533,350 72.580

334.544 396.200

573.600 56,480

448.673 1.378.400 3,392,0017

166.300

725,372 3.569,00t7

36.630 1,378.01717

1,637.200 58,560

1,414.300 823,122

2.000.000 1,427.200

496.1 33

Distribu~urs Svnnex Technolop Internal ional Corp

Diversified Financial Serb ices Reirigro I . td. Chcung Kong Holdings Ltd. LG Corp. China Resources Enieqinse I.ld CI1 IC Pacific Ltd Yuanta Core Pacific Sccunties Co. Shanghai Industrial Holdings Ltd. Chcung Knng Infrasiruciur; I lulrlingj: Lid (iucco (.kiuk> 1 .id Beijing Enterprises Holding Ltd.

Diversified Tclecoinmunication Services Ielekumumkacja Pukka SA Singapore Te1ecciiniiiuni~;iiillrls t.td lekfvnus de Mexico SA de CV (Telmexl. L. ADR hlagvai- Telekoiii Ltd Chunghwa I rlrccrm Cu.. Ltel

Electric U i l i t i e s Ccntrais Eletncas Brasilciras SA Huadian F n w r Iiiterriatiurial Curp , Ltd . H YTL Power International Rhd.

Food & Staples Retailing President Chain Store Gorp. 3lig-us l.urk .I- A 5 Daiw Fami hitematirrnal Hnldings ILKI, The’Spar Group 1 ~ 1 . leruriimci Martins 5LP5 ‘;,I

F w d Products I!kl-Fresidenr Fntcrarise, Cum CJ CUT. Gm?o Bimbo 5A cle CV. ‘4 Kuala I.umpur Kepurig Hhd

Gas Utilities Gail India Lid Korea (;as Corp

Hotels, Restaurants & 1-eisure Kdnpun Lirid Inc Resorts LVorld Bhd China Travel International 1nves:nient Hong Korig Lit1 Tanjong FLC

- I N s

724F IiKG KOR CHk Cl lh TLVk Cllh H K L HKG CHY

POL SGF XlLX HL’N I\\ h

BRA Ctlh MYS

TMA TUR HKG ZAT: FRT

. I W N KOR .VEX \2Y5

IND KVR

KOR

CHk w s wI;

TWD

7AR HKD KKlV HKD I IKD TWD HKD HKD HKD HKD

PLY SGD

HUF .TWD

L:m

BRL I IKD MYR

TVVTI TRY

ZAR EUR

w)

TLVD K R W Irzm MYR

lkR KRLV

K H W MYR HKL) 32YR

2.1 16,015 0.32

12,626,527 7,863,686 6,838.763

3,906.497 3,667,001 3.158.342 1.078.428

582,464 226.783

4.572.398

1 89 1 1 8 I D2 0 68 0 58 0 55 0 47 0 16 0 09 0 03

44.500.889 6 65

9.225.978 6,802.915 6,193,313 6.0S.2 198 4,500.708

32.774.112

5,249,627 1,505.009

925.710

7,680,346

7.561.855 4.636.735 2.147.581

361,2 16 96,369

14,803.756

1.38 1.02 0.92 0.90 0 67

4 89

0.78 0.2.3 0.14

1.15

1 1 3 0.69 0 32 0 05 0 02

2.21

5.899.719 5,402,281

963.400 71 4.203

0.88 0 81 0 14 0.11

12.977.603 1 94

3,006,205 1.618.784

0.45 0.24

4,624,989 0.69

6.418.908 3,446,000 1.025.782

573,298

(7.96 0 51 0.15 0.09

11.46.3.988 171

Household Durables Arcehk AS. Br. Frernler h m ~ e .lechiioloD Gorp LG Electronics Iric. TCI Multimdin Technolop Holdings l.td

TUR TRY TWh 1-WD K O R KKW c t-I h HKD

4,334,241 4,045,054 2.329.873

294.447

0 65 0 60 17 35 0 04

11.003.61 5 1.65 Household Products Hindustaii Lever ILld 1.G Household B Heal:h C:ax Ltd

I S D IUR KOK KRW

6.160.918 2320.889

0 92 0.35

Industrial Conglomerates K ~ p p ~ l Crrrp Lid F r a x N Nea\e I.rd. Striy,dpure Technologies EngineennK Ltrl Sl!vlE Dart>) R t d Yl-L Corp. Bhd.

8.381.807 1.27

10.483.752 7.672.843 2.870.189 2,178.358

698.503

1 5 7 1 1 5 0 43 0.32 0.10

23,903,655 3.57

109

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Emerg ing M a r k e t s Fund -


(Currency - USD) Al l securit ies a r e ordinary unless otherwise s ta ted

x of s!iarei or Description Cou11tr)- Trading llarket nc't

lace \ d u e C U l k curreno. L d h F asseis

N urn her of

Insurance Old Mutual PLC

Internet & Catalog Retail C7riflarne Cosmeucs. IDR

1.1. Services Travelsky TechnoloE- Ltd.. H Prukom Sofrware SA

3.31 7,htil

206.000

2.37T.000 3.700

36,000

507.17417 61 7.028

790.500 3.799370

SST.927 T.358.000

1 3+.250 62.000

2S0.000

290.244 11 .810.01717

914.465 445.022 376.521 39,600 36.420 81,139 59,300

3,121.503 295.60S 411.056

36.426 310.410

5,268.300

2 8 8 3.000 1,057,774

54.829 703.000

3.787,33Y 3.609.810 3,253.000 1.530.000 3.263,088

397,383

ZAF

S 1 V t

CHli POL

T\YY

KOK KOR

SGP -1-1 IA

7AF CHN BRA IND

THA

R R A CHN IND l C l K POL HLN KOR IND 7AF

MFX L\F Bk-l

GRF

SFK

HKD PLh

T\VD

KRVV KRW

SGD .I1 1 H

Zi\R tiKD l:SD 1NR

THB

LSL) HKD INR TRY FLK IIUI. KRW I N K 2AR

MXN ZAR RRl .

HLF LSD

THR

SGn HKD

KRW

T\VD TWD TWD I-WL) TWD

-rvm

L1KL.

7.250.893 1.08

4,692,063 0 70

2.018.853 108.592

0 30 0.02

2,127.445 0 32

Leisure Equipment & Products Giant Manufacturing Co

Machinery Daewoo Shipbuilrlirig Gr h'i;rririe Fneinccnng Co , Ltd Samsung H f a y lndustnes Co.. L d

58,077 0 01

1 .-ti 0.81

2 29

9.729.090 5.612.599

15.34 1.689

Media Sirig.ipore Preys Holdings h d . BEC \Vorld Public Cci , Ltrl , fg:i

2,015.745 1.066.5i6

0 30 0 16

3,082.271 0.46

1 96 17.61 0.51 0.03

13 135.5TY t.095.221 3.409.950

199,227

Metals & Mining Anglc American PLC Aluminum Corp of China Ltd . H Cia Vale d o Rio L)oce. A. ALX. pkl N;iriemd Aluminum To , h d .

20,839.W' 3 11

0.05 Muili-l.ine Retail Smm hlakro Public C.O.. I . r d . . rgn

Oil C Gas Petroleo Brdjileiro SA. ADR, pld PetroChina Cci., L~cl.. I I HindusLari Petroleum Carl'.. Ltd Tupras-Turkiye Petrol Rdineleri AS Folski Koncem N;i[rciwy Oden Sr\ MOL Mngyar Olaj-Es Gazipari RT 5K Coip. 011 k haiural Gas Corp . Lid. Sasn1 Ltd.

372.051

13.362.834 8.738,748 6.W7.004 6.388.5 16 5.381.333 3324.698 1,929,257 1,905.06.3 1,609.826

43.087.239

2 00 1 31 (7 96 0 95 0 80 0 50 0 29 0 28 0 24

7 33

Paper 6r Foresl Products Kimlxrl! Clark de \lexicu SA de CL, A happi Ltcl. Suzano Rdhi3 SUI Papel e (:elulose S.A. p[d , A

10.714.32!) 3275.623 1,708.696

1.617 0.49 0 25

15,698,648 2 34

5.358.733 5,2+5.010

0 80 0 i 8

Phdmldceulicals Gedeon Richlei Ltd P h V 3 D D GDR, Keg C

HL!h HRV

158

0 1 3

0 43 0 31

0 74

PY2.392 Real Estate Land arid 1 ioirse P:iblic To , Ltd.. Ip

b a d k Rail Coinfoi-tdclgrc Curp.. I .:d MTR C.orp, Ltd.

2.889.326 2.041.8; 1

5GP HKG

4.931.137

Semiconductors & Semiconductur Equipment Samsuiig Electronics Co . I.ld McrliaTek 1nc

ai\b;in Serimmiducror \lanufacturing Cv Sunplus Technolug! Co . 1.1d jiliccinware Prctision Industnes Co.. Ltcl. Realrek 5eiiiiconductor Cui?. Elan Xlicruelecrrciriics Corp

26,182,239 6,872.250 6,588.236 5.082 837 3204218 1.668.871 1663,737

3.91 1 03

0 76 0.48 0.25 0.25

7.66

0 98

0.73

51,262,388

BRA 4.870.431

110

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Emerging Markets Fund -


(Cur rency - USD) Al l secu r i t i e s a r e o r d i n a r y un le s s o t h e r w i s e s ia ied

Number uf % of shares or t)cscriptiun C.uurl t q .Trading Market net

r;rCt. value code currenc) \aluF asws

120,000

4.784.000 10 -345.624

160,800 28,800 81) 1,000

1,507.100

$76.930

41) 1.000

251.0110 500

189.000

110.700

Transportation Inlraslructure 1 lopcwcll Hcildings Ltd.

Wireless Telecommunication Services Ch~na Mobile illong Kung) Ltd. Taiwan \Inbile Co.. Lid. !dlrrhik Telesysterns. .4DK SK lelccum Co , Ltd Maxis COniniiiniCiitiUIiT Uhd Shin Curp. Public Lo.. Ltd , fgn

1 O I A L SHARES

RIGH I-S Diversified Telecommunication Services Irue Curp. Public Co . Ltd.. nghts , 0 00%. 03/28/08

.l-OTAL RlGHTS

TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE I.ISTING

.IRAYSFERABLE SECLRITIES DEA1.T 1 1

SHARES Commercial Banks Bank of c'otri~iuriicatiuns. Reg S

Diversified Financial Services I.or-aliza Rem a Car SA Franklin India Rlucrhlp Offshore F~iiid

ON ANOTHER RF-GGIA I b.0 MAKKET

Oil 6r Gas Lukoil Holdings. ADR

TOTAI. SHARES

'IOIAL TRANSFERABLE SECURITIES IIEALT IN ON ANOTHER REGU1.AIED MARKET

TRAkSFERAB1.F SFCOKI I l l 5 SOT ADHITTED TO AN OII'ICIAL STOCK EXCHALGE I.ISTlhG h 0 K DEAL-1 I N U k APiOTHER REG1:LITED M A K K I j I SHARES Metals 6r Minin \lining and Mciafiur.gicd Cu hurilsk Nickel

TOTAL SHARES

TOTAL TRANSFERAR1.t: SECURITIES NOT ADMITTED T O AN OFFICIAL STOCK EXCHANGE I.IS'IING NOR DEALT IN ON ANOTHER REGCLAIED MARKET

TOTAL INVESTMENTS

I IKG HKD .3OH.074 0.05

CIih I IKU 17,822.606 TWl i TWD 10.647.746 RL'S C! S Ll 5.410.920 KCIR KRW 7,066,795 \1YS MYK 2.274.395 TH.4 THB 1,367,604

2 66 1 5 9 0 81 0 76 0 34 0 20

42.SY0.066 6 36

563,766,543 84.20

THA THB 0 0.00

CHN HKD

BFLI BRI. I l iD l!SD

KC!S USD

KU5 USD

0 0.00

563,766.543 83.20

176.91 8 0.03

1.355.303 7.225

L! 20 0.00

1,362,528 0.20

6.Yj1.420 1.04

1.27

8.490.866 1.27

6,708,420 1 00

6.708.420 1 00

6,708,420 1.00

778.965,829 86.47

1 1 1

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Emerging Markets Bond Fund -


(Cur rency - USD) All securi t ies are ordinary un le s s o the rwise s ta ted

Numbcr 01 shdres [or Description

face \-slur

% ol

code currenc) value a s w s Countr)- Trading Markel IlCl

24.647.000 L!.735.000 lb,W1,000 15.742.633 11,875,447 5.350.~J00 3,625.000

16.0?0.000 2,850.000 3.760 .ooo

16,040.000 -l,200.000 3.665.000 -3,92L).000

10.450.000 2.659.1 30 1 .T50,0OO 2.368.100 1,400,000 1.295.52s 1,350.000 4.300,000

905.000 650.000 625.000

TR4ksFER4BLE 1;ECC:KIIILS .-1LlhiITTFD TO AN OFFICLIL STOCK EXCWNGE LISTING BONDS Government Bonds Kcpublic' or r\rpcnliti6i. FRI';. 3.01%. 08/03/12 + Repuhlic of Vencncla, FKh. 3 09%. 04/20/11 *

Kepuhlic of Rranl, FRN. 3 :25'%. 04:15/12 + Republic ol Ukrainc. 7.65%, 06/11/13

Republic (01 Poland, 6.25% 10/24/15

Repuhlic of Philip incs cd 127% 02/22/10

ARG VEN RIX llK4 BRA LtiK RUS POL Rl!5 PI iL POL PHL

Kubskiii Federaiion, Reg 5. 5 00% 03/31/07 Repuhlic ol Brazil, 8.30%. 04/:5/1+

Russian I w l m i u u r l . 1 1 00%. 07/24/18

Russian 1,eder;iMn. 12 75% 06/24/28

Republic ul Polmi , 6.66%. iS/i-l/OY Republic of Fhilippines. 9.0L1CX.. 02/15/13

olombia. lO.L\@%, 01/23/12 COL enczuda. 9 25% 99/15/27 VEN

Republic of Foland. 8.50% 11/12/06

Kcpublic CI 5outn 41rica. ~ 2 5 % 05/16/13

POL

L I F PER MEX C!KK FHL POI. PAh MES C: KK

Socialist Republic y i y y , FRS. 4.0b25')h. 03/12/16 t VND

Kepubli~ or Fern. FRY. 5 00'b. 03/07/17 + C!niwrl Mcxican Slaws. 7.50'X. 03/08/10 Repuhlic of l!kraiiie. 10.0DB. 03/15/07 Repubhc c d Philippines. 8 8758. 03/17/15 Republic of Poland, 8.50%. 05/12/07 Kepuhlic or Pandma. 9.375'6. 04/01I1Y United hlcxican States, 5 3 7 3 6 , 06/10/13 Kcpublic o f I:kraine, FRY, 5.360,. 08/05/09 +

EVR LSD EUR ELR U D FLK L! 5 L> EUR L!SD

22,138.815 19.996.2PO 18,395.342 16.126.360 11,433.858 6.022.2i0 5.429.271 7,404,609 5.179.875 5.089.842 5,031,865 3.337.670 4.274.149 4,135.273 3.287.373 2,331,939 2,327,112 2.275.034 1.9YI,712 1.675.8.35 1.41 T,09.5 1,410.643 1,121,295

863.966 675.000

1.830,000

4 180 000.000 9.400.000

10,900.000 30,[email protected]

80,l 00,000 8.000.000

2 .400.000.000 3,476.785 1,750.300 2.058.850 7,500.00tJ 1 .8-l0.000

16.500,000.000 6170.000

P,200,000.000 7,965,000,000

30.000.000 2.:517,000

27.000.000 18.700,171717 13.700.000

511.667

TOTAL BONDS TOTAL .IKANSFERABI.E SECURITIES ADMIllEU ro AN OFFICIAL STOCK EXCHANGE LISTING

TRAhSFfiKi\HLL: SECURITIES DEALT I P i 0% A h 0 rHFR RFGILITED 1IIARKET BONDS Corporate Bonds Feiiiex Project fu:idirig llasrer Tnist. 144.4. FRK. 2 727550, 06/15/10 '1.

Government Bonds Indonesia Rccapital Hunrl. 13.1 5%. 03/15/10 lritlurlesia Rerapiral Bond. 14.25%. 06/15/13 Indoiicsia Rccapilirl tlrrtid, 13.275%. 12/15/13 Republic of Fern. FRK, 4.50%, 03/07/17 'I. Korea Treasury Bond, 4 75%. 03/1 LA78 Republic ul PLilerltl. 7.75%. 09/23/22 Go\er?inient of hlalaysia. 4 305'%, 02/27/09 Indonesia Gowrritnenl. 1 1 .OO'X. 1 l/i5/20 Kcpublic e l l Slorakia. 4 W L . 02/11/:4 Peru Rotid Soloerano. 9.91%. 05/05/15 Knrr'a Treasury Bond, 3.75% 09/10/07 Bosnia Gr l i e txpo~i t ia , 0.00'X. 12/11/17 Repuhlic of Colilmbia, 10 7 5 8 , 01/15/13 Republic u l llxiz~l, RG. FRK. 3.125%. 04/15/12 + Government ol hlalaysia. 3.644%. 178/25/10 Kcpublic or Ukraine. h 8758. 03/04/11 Go\,eruinent of Inclonw;r, 10.03%. 07/15/17 c:;iireel ?,kAicJti States. l44il, 7.50%. 03/08/10 hoverninent of Iiidcinesia. 11 .00%. 10/15/14 Iiidonrsia Go\er:iiiient. 10.75%. 05/15/16 Thailand (;ovcmment U e d 5,60?0, 07/07/07 Government c d Malaysia. 4 032'?b. UY/lS/09 ~Ih;iilarid Govemment Bond. 4.1258, 02/1 2/08 Republic of Slcl\;ikia. 4.80%. 04/14/09 Repuhlic ol Slu\alu;~. 5 30%. 05/12/19 Kcpublic or Philippines. FRY. 2 9375%. 06/01/08 .: Bosnia EJ Hcrzcgowra. I:H?;. 3 00%. 1U11/17 Kcirra Irensury Ro?id. 4 50%. OY/O/09/08 Thailand Gowmmciit Hunrl. 8.50%;. 12/08/08 Thailand Gcnerrirncrll Rond. 8.0~7'L. 12/08/06

152.672.493

152.672.493

152,672,493

MEX LSD

IDL I D K I D 3 PFR KOR POL MYS IL>h 55s PER KOR lllli COL 13 FA MY5 L K R IDK MEX IDN IDN TH.% hlYS THA

55s FHL Rll I

KOR TH.4 .I1 1.4

sss

IDR IDR ILIK 1!SD KKW PI N .MYR IDR SKK PEN tiR\JC E1!R LSD I S D V Y K USD IUK EUR IDR IDR TH R MYR THR SKK SKK U5D EI!R KRW THR THB

6.~35.367 4,558 020 4,525,689 4.256 752 +.136.769 3.1 18,038

2 9 31.813 2,840.722

2.972.nn9

2 , 7 2 3 . 0 ~ ~ 2 3 0 . 7 : Y 2.271 721 2.129.050 1991,946 1 989.878 1,932,350 1.565.470

853 591 .. . .. . 832.3Y3

759.387 742,3 I9 667,944 634.163 516.263 48 5.075 458.195 244.917 84,544 3.402

m . 9 1 1

60.120.385

9 1.5 8.27 7.60 6.67 4.73 2.41) 2.25 2 23 2.14 2 10

I 84 176 1 .;1 l..36 1 05 0.96 (7.94 0.82

2.08

0 69 n 59

0 46 0 3b

0 38

o 28

63 :I

63 11

63 11

0.78

2 83 1 RR 1 87 I 7 6 1.70 1.29 1.23 121 1 18 113 0 94 0.94

0.82 0.82 0.80 3.63 0 35 0.34 0 33 0 31 0.31 0.28 0 26 0 21 0 20 0.19 0 10 0.04 0.00

24.83

0.88

112

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Emerg ing M a r k e t s Bond Fund -


(Cur rency - U S D ) A l l secu r i t i e s a re o rd ina ry un le s s o the rwise s t a t ed

Numbcr ul h i r e s or Desmpiiun

lace value

% 01

cc1de currency value assets C o u l l l ~ Trading Mnrkei npi

7.1 70.1100.1100 188.100.000 $4.0(10.000 32,800,000 25,800,000 6.955,000

l.Oi)0.000

Securities Maturing Within One Year

Thailand Goveminenr R o n t l , 8.50%, l0/l-t/05 THA THB 4.h25.813 1.91 K u r u .Irca;ury Bond 4 50%. 03/05/06 KOR K H l V 5.022.956 2.08

Bank of Thailand Bond. 0 0tYk. OW1 7/06 IHA THB 1,042.384 (7.43 Uarik Of .I hailand Bund. 0.008, 04/07/0h TH.4 rl IU 1.013.919 0.42 B3ilk or Tliailand Rotd. 0.00%. 32/13/06 THII THR 614.268 0.25 Thailand Treasuv Bill. o.00'%. 03/179/06 . I t I'% THB 165.130 0 07

12,484,470 7 16

TOTAL BONDS 74,497,075 30 79

ON ANOTHER REGC!LATED MARKET T3,SYT.075 30 79 TOTAL TRANSFERABLE SECURITIES DEA1.T IN

TRAiiSFFRARLE SECC:KI I l l 5 XOI- .4DLlITTED -1.0 '41 UFFICIAL STOCK EXCHAKGE IISTIKG N O K DLALI I N OK AXOTHER RF.GVIAkL) MARKEI WAKRANTS Gobernmcnt Bonds Rquhlic oC L'rigu~y. ry,h~s , 0.0O'x.. 01/19/21

TOTAL WARRANTS

I O l A L IRANSFERABLE SECCRITIES NOT ADMll ItD TO AN OFFICIAL STOCK EXCHANGt LISIING NOR DEALT IN ON ANOIHER REGULATED MARKET

TOTAL INVESTMENTS

t Floaung brcs iirc irirliw:cd as at June 30, 2005

I!RY USD 100 0.00

100 0 00

100 0 00

227,169.668 Y3.YO

113

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Euro L iqu id Reserve Fund -


(Currency - E U R ) A l l secu r i t i e s a re o r d i n a r y unless o the rwise s t a t ed

5.00U 000 5,000.000 4.0017.000

7.500.030 7.300.000 6.500.000 5.1700.0UO 5,300,0110 4.000.000 2.00cI.00t7

A of Dcscrip~iuri Cuurim, .Ir, <IC 1. ing h r k z t ne1

code curl-ency value assets

rRANSFFRAR1.E SECI!RITIES i\DMlTTED TO ,4N OFFICIAL SlOCK EXCHAKGF I.ISTlKG BONDS Securities Maturing Within One Year Gcrman Trcdsur) Ril l . 0 00%. 07/13/05 DEL: FUR 4,996,750 8.42 Dulch Treasury Rill. 0.00%. Oi/29/05 XLD EL!R 4.Y33.250 8.42 French Trcasur) Bill, 0.008, 09/15/C5 FKA E U K 3.983.360 6 72

13.973.360 23 i h

TOTAL UONIX 13.9:3.360 23 56

~ 1 ~ 0 1 A 1 . TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 13,973,360 23.56

TRAh5FERARLL SECUKIII1:S UEAI T IK ON .ANUI’HER RFGI.!I ATFD MARKET BONDS Securities Maturin W’ilhin One Year Germen Treasury E k 0.00‘X. 08/17/05 Portugal Treasxy Rill, 0.00?;, 07/22/05 Portugal Treasury Hill. 0.00%, 09/23/07 Relgiiirn .Ircasury Rill. 0 00%. 07/14/05 Italy Trcasuq- Bill. 0 008, 07/15/05 1:rcnch lreasury R i l l . 0.00%. 07/07/05 F r e x h Trcasuru- Rill, 0 008, 07/21/05

TOTAL BONUS

TOTAL .I.KANSFERABI.E SECURITIES DEALT IN ON ANOTHER REGULATED MARKET

DEI; PKI PKI BEL.

EL!R LCIR EL:R EIJR

7.481.625 12 61 7,292,481 12.29 6,469,970 10.01 4,YY7.275 8 4.2 4.992.655 8 42 3,998 660 6 74 1 997 i27 3 37

LLK ELR f . L R

37,230,193 62 76

37 230 193 62 7b

37.230,11)3 62 76

71.203.553 86 32 TOTAI. INVESTMENTS

114

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Euro land Fund -


(Cur rency - EUR) A l l securit.ies a re o rd ina ry unless o the rwise s ta ted

Number ol stiiires ur Dcscripiiun

f X F V d U F

'X of Market net

value aswts Couni:! Trading

codc currency

TFL4WUSFEUWRI.F SECI!RITIES ADMITTED T O .\Pi OFFICIAL STOCK EXCHANLE LISTlfiG SHARES Air Freight & I.ogistics

Aum Components Miclielin SA, R Vale0 SA

Deutsclie Fnst L\G 1.012.17917

394.300 498.465

519.000 434.494

465,858

339.726 589,745 296.537

356.700 2,055,500 3,946.600

180,515 279.600 682,500

402.213 1,526,000

294.640 378.300 631,370

2,243.755 526,700

855,030 121.000

1,474.037 626,370

2,154.934

1,097.300 918,600 800.000 239,225

129,859

368,379

163,426 128.863

DEL

FRA ITA

L)LL DEL

4 I! T

NLD N LD IIIIC:

FR4 ESP 11.4 DEL AUI ESF

€M fi LD

I K i \ FSF fi LD DELI h LL3

ELIR

EI!R I I! K

LUK FUR

FUR

EUR EUR hL!K

EUR EUR EUR EUR EUR El!R

E L R EUR

L L K FUR ELR E L R L L K

19.533.33i 1 i 6

19.853.005 18.+93.052

1.7Y 1 66

38.346.057 3 35

19,644.150 16.+02.149

1 7 7 1.37

36.046.299 3 24

Building Products M!iencrlwgcr .4G

Chemicals 05x1 h\,. Dr. .4kzo hobel N V BASF AG

17.874.971 1.61

19,228 492 19.213 892 16.309.425

1.73 1.73 1.47

54,751,809 4.93

Commercial Banks BhP Paribas SA Banco Santaiider Central Hispano SA Banca Intcsa SpA Dtwsr-tir Bank AG Frsis Rank dcr Oesier Sparkassen AG Banco Popular Espanol SA

20.224.890 19,702.655 13,937.881 11.675.710

1.82 17T 1.35 1.05 1 04 0 61

11,567'052 6.818.1 77

84.926.363 7 64

Commercial Services & Supplies Societe BIC SA Vcrllur r,\'

19.833.123 17.79.3.160

1.79 1 60

37.626.283 3 39

Construction & Engineering V-inci SA Grupo Perruvial SA Imtcch NV Jenrpiik AG .4rcadis I i V

20 271,232 20,163,390 18.303.417 18.286.6fi3 10.270 650

1 82 1 82 1 65 1 65 0 92

87,295.292 7 86

19.982.05 1 8.197.TSO

1.80 0 74

N LD N1.D

EUR FL!R

28.1 79,801 2 94

Diversified Telecommunication Senices 1 clefunica 5.4 Rclgacom SA Portugal Telecom SGFS SA

19,958.5Y8 17 694.952 16,804,683

1 80 1.59 1 5 2

LSP REI PRT

ELK E1:R ELR

54,548,233 + 91

Electric Utilities Endesa SA Iberdrola SA, Ur. Sue; SA k. c7u AG

ESP ESP FRA 1) L: L!

EUR 21,298,593 20,043.852 17.944.000 17,626.098

1.92 1.80 1 6 1 1.59

LUK EIJR EUR

76,912,543

7 363.005

19 763.533

9,437,852 8,350.322

17.788.174

6.92

0 hh Energy Equipment 6r Services SRH Olfshvr~ K V

Food Products Llnilewr N\:

Health Care Providers & Services OFG Groep N\' Celcs1o AG

N LL) ECR

1 T8 1I.D FI'R

0.85 0 75

N1.D DEI!

E L R EUR

1.60

115

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Euroland Fund -


(Currency - EUR) All securit ies are ordinary unless otherwise stated

Hotels, Keslauranls 6r Leisure St71 Mclia SA 4cior 5.4

2.152.400 519.31 3

9b6,660

323.600

954.638 1 ,088.200

3170.5(30

1.~73.000

I . 135.423 729.9 30

1,386.000 219,675

1,379,317 1.661.600

974,250

1.43 1 .400

406.800 100.900 94T.800 941.100

4.340,l 14 1.803.305 1.193.081

296.185 620.900

148,740

ESP E L R FRA E L K

1.8h 1.81

20.619.992 20,137,642

40,757,634 3 67

Household Durables Koniiiklijke Philips Elecminics S V

Industrial Conglomerates Siemens A(;

Insurance 'I.%\ SA Riuniiinc Adrialira (11 Sicur:a $3 Sainpn OYJ. A

N LL)

DEI:

ELR 20.203.lO.t i .82

EUR 19.745.410

FR4 ITA FIN

ELR FUR ELR

1.78 i.58 0 46

19.732.367 17,509,138 5.1 54.433

42.39 5.940 3.82

IT Services Thicl lligisrik AT; 0.43 EI!R LUX 4.766.1 90

17,786,354 16.678.901

Leisure Equipment & Products , h e r Spun, Curp , L d Agfa Gevacrt W

1.60 1.50

FIN BEL

FllR EEK

34.465.255

Machinery Meisn OYJ KCI Konecrancs Irilrrrialional PLC

Flh F I S

EUR FUR

24.954.930 7.T46.839

2.24 0.70

32.701.769 2.93

2 1 .P20.795 19.141.632 17.731.350

1 96 1.72 1 60

Media Wdtcrs Klunw PA' Hrcd t:lse\wr NV NV Holdingmaatschappil De lelcgrad

N LL) NLD Y I D

EUR EUR EI:R

58,693.777 7 28

Office Electronics Occ hL

Oil & Gas Kuyal Dulch Pelrolrurn Co. Tola1 SA, R Eni 5pA Repsol YPF S A

1 5 7 N LD EUR 17.4:35,452

21,967,200 20.770.670 20.197.618 19.91 3.676

1 98 185 1 82 1 79

NW FRA 1T:I ESP

EUR ELR EUR EUR

7 46 82.849.1 64

19.465.41 1 19.060.934 1 8.9 i 0.3 34

Paper 6r Furesl Producls

Stora Enso OYJ. K I'PWKyminenc Cor]>.

\l-lf!l OYJ, R k l h Flh Fl l i

t;L! H EUR FI!R

1 7 3 1 . i2 1.70

5.17

1.81 0.89

57,436,679

Pharmaceuticals Sand-Awntis Orion OYJ

20.1 10.961 9.887.833

FR4 Flh

ELJR EUK

29.998.794 2 70

Textiles, Apparel & Luxury Goods .\didas-5alurniuri AG

I'Oi-AI. SHARES

TOTAL TRANSFERABLE SECURITIES ADMITI-EU 10 A N OFFICIAI. STOCK EXCHANGE LISTING

.IOTAL INVESTMENTS

20.645.1 12 1 86 DILL!

1,042.849.100 93 87

1,042.849.100 93 8T

1 ,042,849,100 Y3 87

116

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Euroland Bond Fund -


(Currency - E U R ) A l l securi t ies arc o rd ina ry unless otherwise s ta ted

K umber u I shares ur Lkscriplion

face \-aluc Coun::y Trading

code curretic!

% of Market net

value assel5

640 .OX) 633.1700 490.000 510.000 51 5.000

1.720,000 -t03,000 370.000 ~340,000 280,000 300,000 320.000 320.000

1,260,000 2Y9.000 200.000 260,000 235.000 2j0.000 230.000 210,000 230.000 200,000 170.000 160.000 140.000

1.250.000 620.000

1, l 05 ,000 100.000 75.000 60.000 60,000 60.000 55.000 48.162

100.000

1,900.000 170.000 170.000 115.000 117.0017 770.000

430.000 330,000 $15.000 360.t700 315.000 150.000 580,000

1,1114,489 100,17017

1,100.000 800,000 YOO.OOO 400.000

TLlNSFERiZRLE SECURITIES AD411TIED TO AL BONDS Govcrnmcnt Bonds RepJhlic ul .4umia. 4.656. 01/15/18 Hellenic Republic. 5 358. 05/18/11 t,etleral Rrput>lic of Grrmdny. 5 0070. 07/03/1 1 Government of France, 4 00%. 04/25/13 Rep,ibIic or Ireland. 4.25%. 10/18/07 RepJblic of Poland. 6.25% 10/24/15 Goveriimeiit uf Ira1 7.759;. 11/01/06 Gnwnrneni of F i t h d , 537%. 07/04/13 (;o\-ernnient of France. 4 755, 10/25/12 Hellenic Republic. 6.50%. 10/22/19 Gcvrnmcn~ uf Spain. 5 50% 07/30/17 Gmwninent of Spain. 5 00%. 07/37/12 C;o\rmnient of Finland. 5 00%. 04/25/00 Repahlic of Poland. 6.00% 05/24/09 C;owrnmeiit of Finland, Go\ernrnmt or Keiherlar RcpJblic 01 Porhy,al. 5.3758. 06/23/08 Kingdom r r l Relgium. 7.70%. 07/29/08 Go\ernmt.tri of Nt.ihcrlantls. 3.75%. 07/15/09 Government of Netherlands. 5 75%, 02/15/07 Rrpabllc ol Irt.lanrl. 4.608, 04/18/16 French Go\-ernment Bond, 4.50%. 07/12/06 Gixcmmetir or I&. 4 50%, 03/01/07 Repuhlic of Ireland. 5 00'6. 0f/l 8/13 Repiblic of Austria. 5 00%. 07/15/12 Guvemmcnt ul Netherlands. 5 50%. 01/15/28 Kingrlurn u l Nurniiy, 6.75%, 01/15/07 Repl-iblic of Poland. 8 50%. 11/12/06 Kingdom of SWt'dFrl. 8 00%, 08/15/07 Go\rrnnient of Spain. 4 25%, 10/.31/07 Gowrntnrni of Nrihcrlanrls. 3.00%. 07/15/06 Federal Repuhlic of Germany. 4.508. 0l/(W/l3 Hellenic Rt.puhlic, 3.65%. 03/19/07 Government ut Finland. 2 755, 07/04/ir6 Kingdom of Belgium. 4.77%. 09/28/06 kpubllc vl L!krairic, 10.@0%, 03/15/07 Kingdom of Sweden. 7.27%. 03/1 5/11

OFFICIAL STOCK EXCHAXGE LISTlhG

4L!V GRC DEL FRA IRI. POL 11'% FlK FR4 GRC ESP ESP FIL FOL FIK N1.I) PKI REI. N 1.1) Y LD IKL FRA ITA IRI.

AI!T N LD N i l R POL ;WE ESP NLD ow GRC FIN Ut:L LKR S M L:

FI!K EUR EI!R EUR EI!R PLY L U K EL!R ELIR EUK LL!R EI!R EUR FLN ELIR EL!R EUR EL!R F: I! H EI!R LUK EI!R EC!R FUR El!R EI!R KOK FLY SEK El!R EC!R FUR EC:R ELR tLK EUR SLK

725.888 720,006 753.475 548.389 539.943 479 ,564 433,300 433.917 382.334 369,124 365,340 363,968 351,024 326.672 316,053 303.890 284.024 271.448 263.237 243,545 237,561 235,707 208,090 194.591 181.740 180.166 168,346 161.196 131.721 104,955 75.782 66.701 62.696 60.465 56,830 5 1.488 12.107

4.90 3 86 3.74 3.70 3.65 3.2Q 2.93 2.93 2 58 2 49 2.47 2 46 2.37 2.21 2.13 2.07 1.92 1.8.3 1.78 1.65 1 .60 1.59 1.41 1.31 1.23 1.22 1 1 4 1 .09 0.89 0 71 0.51 0 45 0.42 0 41 0 38 0 35 0.08

10.466.083 70.60

Securities Maturing Within One Year N o n q i a n Treasuv Rill, 0 O0'L. 09/21/05 Fecleral Republic u l German!-. 2.75%, 06/23/06 Hellenic Rcpuhlic. 2.75%. 06/21/06 Gowi-nnient of S p a n 3 20% 01/31/06 Federal Republic ul Gcrrnari). 2.00%. 03/10/06 Kingdom of Sweden. 3.50'%, 04/20/176

KOR NOK DEL! FLR GKC ELK

DEU EUR 5 \I: E SLK

ESP wn

239,275 171,241 171,161 115,765 114.969 82.684

I .6l 1.16 1.15 0 78 0.78 0.56

TOTAI. BONDS

TOTAL TRANSFERAB1.E SkCLKIIIES ADMITTED -ro AN OFFICIAL STOCK EXCHANGE LISTING

TIUL5FERABLE SECI!RlTIES DEALT IN ON AKOTIIER KIlGC:LqltD MARKEI BONDS Government Bonds Guvernment of France. 6.00%. 117/25/25 Federal Republic of German!, 6 25%. 31/04/24 kpxblic of Portugal. 3.00%, 07/17/06 Federal Republir or Gerrnari). 3 75%, 01/04/i5 RcpJhlic ot Austria, 5 875 X. 07/15/06 Repddic of Austria. (5.25%. 07/15/27 Kepiihlic oI Poland. 5.75%. 09/23/22 Kingdom or Sweden. Index I.inkrrl. 3 , 5 0 8 . 12AiU15 Republic ol I r e k i d 4 504, d-t/ltl/ZO Republic of Slovakia. 4.80%. 04/14/09 Rrpublic ol Slovakia. 5.30%. 05/12/19 Repulilic or 5lo\.:ikia. 0.008. 01/14/07 Republic ol Slovakia. 4 90%. 02/11/14

TOTAI. BONDS

TOIAL .l-KANSFERABLE SECURITIES DEA1.T IN ON ANOTHER REGULAIED MARKET

TOTAL INVESTMENTS

I.U\ DEI! P K I DEI! A U T AUT POL SWE

I KL sss 555 555 sss

LLK ELR ELR EUR EUR EI!R PLY SEK LUK SKK SKK SKK SKK

895.097 6.04

11,361,178 76 72

11,361,liR 76.72

%2,4 16 450.780 419,121 379.260 358,524 209,197 159.000 128.367 112.534 30.830 24,915 22.602 11.724

4 00 3.05 2.83 2.56 2.42 1.41 1.07 0 87 0 76 0.21 0 17 0 15 0 08

2 89Y.268

2 899 268

19.58

1y.58

2.899.268 19.58

14,160,446 96 30

117

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton European Fund -


(Currency - EUR) All securit ies are ordinary unless otherwise stated

I K.\USI~l-.H-\KI.I: S K I : K I I 1b.S A1)111 1TF.T) 'IC7 A h OI.FIC.IAl. 5 I'OCK FNCHAhGt: 1.151 l U G SHARES Aerospace & Defence R o l l s - R o y Group PLC LRR RAE Systems P1.C GBR R o l l s - R o y Lroup PLC. R GBR

1.006.097 679.800

54.804.850

506.300

2,005,678

202,872 148,210 910.4017

26a.iwo 221017

107.000

168,TDI) 265,900 136.500 160.71717 $52.i17

5.9711

662,000 656.000 459.412

lYY37.t 709.3017

2.377.000 308.000

1,201.900

1s2,200

227,126 172.100

444.6217

5.694.700

385,100 37.100

718,806 264,400

1.4170 .XI0 1.065.800

291.000

GRF GRP GRP

FUR

LRF

FI! K LC!R LRP

EI!R El!R

CHF

EUR EUR EUR Cl-II GRP CHF

SEK GUP EL R

EUR SEK G H P EUR

GRF

ELR ELR FUR ELR

GRP

EI!R EUR

ELR DKK UOK EUR LC!K

0 82 0 51 0.01

7.631.639 1.34

Air Freight & 1-ogistics Deursche Posr AC;

Airlines Rntish Ainvays FLC

Auto Coinponcnts V;rlco 5.4 Michclin 5.4, R GKN FLC

9.771.590 1.71 DEI!

7.824.576 137 GRR

7,526.55 1 7,462.374 3.477.530

1.32 131 0.61

3.24 18.466.455

10,143,800 8.556.6.t2

1.78 1.48

DEI; DEL

18,600.4.tZ 3.2h

1.21 6,898,904 Capital Markets I!RS xi Chemicals DS!d N V Rr .Aka> Nobel N1; 11ASI. AG Louza Group AC; Johnson l\lalrhe! PI .C L u n t Hcbcrlein AG. Rr

CHE

9,548.420 8 663.022 7 507.500 7351,307 7,151.73 3,497,075

1.67 1.52 1.32 1 29 1 2 5 0.61

NL.D NLD DEL' CIIE LRR CHE

43.717.039 7.66

4,970.608 3,583,923 4.405.761

Commercial Banks hurdca hrik AD Iloyds TSR Group P K Banco Santandcr C:enti-al Hispano 5.4

Sh'E GHK ESP

0 87 0.81 0 7:

2 45 13.970.294

Commercial Seruices & Supplies 5uclt.lc UIC. SA Securitas AB, R Renlokil Ini t~al PLC Vcdior h V

9,831.132 9,788,894 3,621.976 5.640.680

1.72 1 7 2 0 99 0.81

FTU SWE GHK NLD

5.24

Communications Equipment British Sk! Brnadcaiting Groilp FLC

Construction & Engineering Vinci SA Gmpo Fcrrol-id 5A Arcarlis UV Jcnoptik AG

GRR 9.386.632 1.64

1.71 1.61 0.78 0.63

FRA 9 ,783,360 9 171,930 4,428,957 3,623653

ESP K1.D DEL

27,008,900 4 73

0.92 Consumer Findnr-t- A\-is Europe PLC

Diversified Financial Senices 1% G r w p Rodamco Europe N\;

GBR 5,227.349

8,999,787 2.513.525

Nl..D NW

1.58 0 44

11.513.312 2.02

ESP DNK >OR PRT REL

9 732,639 0 368,281 9,315,024 8,355.8'2 8.220.750

1 .;1 1.64 1.63 1.46 1.44

44.992.566 7 88

118



(Cur rency - E U R ) A l l s ecu r i t i e s a r c o rd ina ry unless o therwise s t a t ed

Number of B v l shares or Description Cou:ixy I rading Irlarkel ricr [ d C t .. \,slue code currcncx' value a w l s

Electric Utilities Nauvnal Grid Transco PLC: Suez SA

GBR GRP F M EUR

5.976.7511 4.64.3.010

1 0 5 0 81

745,700 207.0011

67.606

1,081.200 3,310,800

13,500

109.000 4i ,400

261,305 1.054.320 2.900,200

506.100 562,500

4.0(ii, 140 272.200

479.286 331.850 51.600

550.550

.300.000

160.800 502.300 623,100

837.203 985.500 470.302 492.303

316.730 546,100

129,342 323,540 779.310 220.500

19.000

10,619,760 1 86

3.833.260 Energy Equipment & Services SBM Offshore ti\'

Food & Staples Retailing Boots Group PLC L\:illlarri Morrison Supennarkers P1.C

?i LD E1!R 0.67

1.71 1 .60

3 31

0.50

1.10 0.47

9.748.601 r).117.271

t iBR GRR

GBP GUP

18,865,872

Food Products Sestle SA

Health Care Providers & Services OPC, Grocp h V cclcslo .4G

2,853,986 CHE CHF

6.294.750 2.682.720

SLD D I C!

t U H ELR

~

8.977.470 1 5 7

Hotels. Reslaurdnls 6r Leisure Accur SA Sol Melln SA Compass Group P1.C

t,R4 FSP L B R

EI!R L U R GRP

10,130 795 10.100.386 13,069,079

1.78 1.77 1.76

30.300.260 5 31

1.39 1.14

Household Durables Koninklijkc Philips Llectrumcs W Pcrbirnrnon PLC

k LD GUK

E L K GBP

8.487.490 6.504.180

14991.670 2 63

Industrial Conglomerates ikidycotc International PL(7 Smiths Group P1.C

10,336.922 3 703.587

GBR GBR

GBP GBP

181 0 65

2.46

1 73 0 93 0 46

3.13

14,040,709

9,906.812 5.339.466 2,621.635

17,867,943

1.668.167

Insurance FR4 11'4

CHF

FUR EI!R CHF

ALA SA Riunionc Adriatica di Sicurta SpA s;v.iss Reinsurance Cv

IT Services Thicl I~rgisuk .4G

Leisure Equipment & Products Amer Sports Corp . Lid.

Machinery Siemens AG Metsu OYJ Arlas Copcu AB. A

EVR 0 29

0 82 FIN L-LK 1.699 ,500

9.712 320 9,043,911 8.170.r)il

170 1 5 9 1 43

EI!R EUR SEK

26.927.182 4 72

9,644,379

8.559.496 9,593,374

1.69 1.68 1 . j 0 1.36

Media Reed Flsc\;ier h V N LD

GHK

h I .I) N in

FUR LBP EI'K EUR

6 23 ~~

1.27 1.16

Omice Electronics &la Gevaert I\: Oce t i V

HLL N LD

ELR L U K

13,888,779 2 43

1.22 1.21 1.17 0 82 0 65

Oil 6r Gas Ropl Durch Petrolcum Co Em 51.14 BP PLC R t p o l YFF hi'. Total SA, R

I LD 1 TA GBR ESP FRA

E L K LLK GRP EI!R LC!K

6,984,468 6,893,637 6.705.278 4.665 780 3,691,700

28,931,863 5.0:

119



(Currency - EUR) A l l secur i t ies a r e o rd ina ry unless o the rwise s t a t ed

Nunibcr of sh6iws or Dcscripwn

lace valut. Ccru t l r~ Trading

cude currt.riry

2.1 12,356 588.703

328.400 424.7 78

51 7.542 545,630 63.166

lt2.000

Sh0.000

38,700

3.377.0017

2 i 1.500

Paper & Forest Products V-real OY], B I.'PM-K~minene Corp Stnra Eiiso OYJ. R hur,kc 5kogitidus:ner ,iSA. A

Pharmaceuticals (;laxoSmithKlinc PLC Shirt. Pharrnactwlcals Group FLC Sand-Aventii Orion OY I

Redl Eslale Bntish Land Co . PLC

Textiles. Apparel & Luxury Goods Adidai-Salomon AG

Wireless Tclccommunicalion Scnices Vodalone Group PLC.

TOTAL SHARES

I O r A L TRANSFERABLE SECCRlIlES ADMITTED TO AN OFFICIAL SIOCK EXCHANGE LlSTlNG

TRVISFEIURLE SECC!KII'IF.S NOT ADMITTED 10 AN OFFICIAI. STOCK EXCHANGE LISrlIiG NOR DEALT I N O N AKCITHER MLLI .A 1.t.D MARKET SHAKtS Automobiles I I Auiomotiw Ltd

TOTAI. SHARES

I'OTAI. TRANSFERABLE SECLKITIES NOT ADMlTTED TO AN OFFlClAL STOCK EXCHANGE LlSTlNG NOR DEALT 1N ON ANOTHER REGULATED MARKET

TOTAL INVtSIMENTS

FIX P l h FIN

NOR

(XBR GBR FRA FIN

GBR

DEI!

GBK

GBR

EUR EIJR ELR NOK

GBP GUP ELR LC'K

GBP

ELR

GRP

GBP

9 473 917 9.330 913 4,489 9c3 4.474.983

1 66 I 63 0.79 0. i8

27.769.746 4.87

10.311.893 4,943,868 4,288.971 2<261.350

181 0 86 0 75 0.40

21,806,102

5.965.968

5.371360

3.82

1 05

0.Y4

6,799.hS7 1.19

556,668,342

556.668.342

97.54

97 53

0 0.00

0 0 00

0 0.00

556,668,342 97 54

120

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton European Total Return Fund -


(Cur rency - E U R ) A l l secu r i t i e s a re o rd ina ry un le s s o the rwise s ta ted

Kumbe: ul 'b lid shares or Dcscripmn Cuur iq Iriiding hlai-ket net

bee value cude currency \ a b asseis

2.940.1)00 3.000.000 1.700.000 2.000.000 2,400,000 2,000.000 2,000,000 z.000.000 1.930,000 1,850.00C L.000,000 2.000.000 2.000.000 2.003,000 1,900,000 2.000,000 1 .i00.000 1,5017,000 1 ,500.000 1,500,000 1.300.000 1,200.030 1.150.1700 1,000.000 1,000,001) 1,000.000 1,000.(700 1 .000.000 1.000.000 1,000.000 1.045.000 1.000,000 1.000.000 1.000,000 1 ,000.000 1,000.000 1.000.171717 1.1700.000 1,000.000 1.000.000 1.000.000 1.000.000 1,000.000 l.00D.000 1.000.000 1.000.000 1.000.000

940.000 935,000

1,000,000 i)20.000 Y35.000 900,000 900.000 800.000

1,100,000 800.000 600.000 800,000 590,000 5017,000 5D0.000 500,000 410.000 400,000 200.000 186.000 150.000 100.000

BONDS Corporate Bonds

edit. 4 i)01%. 09/29/49

EurohlFo Cap Fund. 6.435%. 05/29/49 Zurich Finance $!SAl Inc , 5 75%. 10/@2/23 FWF AG. 4 875%. 10/14/19 Piudential PLC:. 5.75% 12/!9/21 Abbe) Nmvrial PLC. 7 125%. 09/29/49 BAT International Finance 125%. 07/09/13 Elektrounia luruw IW, 9, /14/11 Rarclavs Bank FLC. FRX. 4 875%. 12/15/14 t .4lliang Finance I1 BV. 4 375%. 02/17/17 Cadbur) Schweppes Investments. 4.25%. 06/30/09 Victona Acquisirion I l l FA,, i 8758 . 10/C1/14 KBS Capital Trust A. 6 467%. 12/31/49 Oliwiti International Finance, 6.575% 07/30/09 Sampo OYJ, FRN. 4 625'b. 04/21/14 + 51 hiacs PLC. 5 . 3 1 ~ . 01/06/15 Kalro co.. 9.009;. 11/15/13 Rhodia SA. 10.50% 06/(71/10 Anglian Waier Senices Financing FLC. 4 627%. 10/07/13 RES Finance Ltd.. 6.627%. 01/01/10 Frmce Telecum 5.4. 7 00%. 12/23/00 Telecom Iialia SPA. 6 258. 02/01/12 LP\I-K)rnmene COT.. 6.125%. 01/23/12 \:folia Enrironneineni. i 375%. 05/28/18 Hilion Group. 6.50%. 07/17/09 Cablecum Luxembourg SCII. 144A. 9 375%. 04/15/14 Holcim Finance Luxernbourg S.%. 4.375%. 06/23/10 Edison SpA, 7 125%. 12/10/10 hationdl Grid Ti-anxo PLC. 5 00%. 07/02/18 St Gobain Netlerland E\:, 5 00%. 04/16/10

l e s r o PLC. 4.75%. 04/13/10 Frexnius Medical Care Capital Trust, 7 375%. 06/15/11 \sulkswagen International Finance. 4.875%. 05/22/13 h i e Finance DV. 6.00%, 07/03/13 RM PLC, 4.50%. 09/30/14 Berirlsmanri L!5 1:inance Inc . 4 62S'b. 176/03/10 Kcxam. 6.625%. 03/27/07 Rolls-Rovce Groul' P1.C. 4 30%. 03/16/11 Repsol 1kcrna~im;il Finance. 4 625%. lC/d8/14 Mh132 PLC. 6.3778, OlRY0T Rod3mco Europe t:inancc BV, 4 375%. 19/01/!4 Inipmal Tobacco Finance PLC, 6.375%, 09/27/06 Repsol Internaucinal Finance RV. 5 00%. 37/22/13 Heineken N\', 5.0016, 11/04/13 Owens-Rrockna) Glass Corita1nt.r Inc , 6 75'5. 12/01/14 Veulia Eii\ironnment. 5.875%. 06/27/08 Anglc American I'LC. 6.625'6. 06/05/08 Clondalkin hidustries. 8.0096, 03/15/14 KTI. Cable PLC, 8 755. 04/15/14 Bina-istra D d.. 8 00%. 1U15/12 Waterford \Vfdgnood PIC.. 9 8758. 12/01/117 General M\loturs Acceptance Corp , i 373% 06/06/:1 liircurn Funding, 8 25%. OW1 5/1 3 b 'a tdord LVedgewood r1-C. l4-tA. Y 8758. 12/01/10 Rurrni Polienriali Lkl Tcsoro. 3 SOL&. 0l/l5/@8 Xerox CUT.. 9.75% 01/15/09 B q e r AG. 6 00%. 04/10/12 Crown European Holdings 54 , i0 .259~. 03/01/11 Deuische ~Ielekom International Finance h \ . 7.508. 05/29/07 Calpiiie Canada Fnergk t.inmce, 8.3751. 10/1S/OR Legrmrl SA. 1 l.oO'%. 02/15/13 Huntsman Inkrnational LLC:. 10 125%, 07/01/39 Vodafonc Group PLC, 5 75%. 10/27/06 Safilo h p i t d Inrernational 5.4. 9.625% (??/I i l l 3

LAFARGE SA. 5.00'6. 07/16/13

L5A DNK GRR h LL) M EX GRR u SA D t U GBR GBK GBR N1.I) GBR S1.D GRR h LD GRR fi LD FIN GRR LSA FRA GBR CY M FRA 11.4 F1N FR.4 GRR LL!X LUX H A GRR N LD I K A GRR I:SA K1.D k LD GUK 1!SA GHK GRR XLD LRR K1.D GRR Kl .n h LD I!L4 FILA GRR IRL

GBK HR\; IRL L!SA IRL 1RL I I A USA LILC! FRA 3LLJ TAN F E \

GRR I.L!N

K R FL'R GRF ELR EUR FLR E L R EUR EI!R EL'R FI!R EUR FL!R EL1K EI.'R LLR EI:R EIJR ELR EUR E L R LUR EI!R EUR EL!R EtiR ELR LLR EUR E U K E1!R E1!R LUK E1!R EUR kLR EI'K EUR E L R EUR FI!R EUR EUR FC!K EUR ELK E L R ELR FUR EUR El!R EUR FUR EUR EUR EUR EUR EUR FL'R EL:R EUR EUR EUR E1!R LUK FUR EIJR EUR EUR

3,255.315 3.235.290 2.564.R58 2.302.376 1.350.910 2.310.400 2,232,700 2.2 14.000 2,209,395 2.201.9 11 2,178,880 2,16Y,400 2.053.300 2,012.200 1.996.140 1.840.000 1.780.053 1,696.710 1.592.925 1.579.715 1.423.500 1.326.000 1.252.235 1,180,114 1.176.400 1,156,674 1.152.500 1.149:850 1,134,550 1.133.750 1,110,783 1.104.750 1,101,850 1,093.650 1.090.R50 1,088,730 1.085.000 1,083,800 1,078,600 1.077.4011 1,06Y SO0 1,068.250 1.066.930 1.064.600 1,039,595 1,050.850 1,049,280 1,029.864 1,017,607 1,015.000 1.008.550

963.237 954.000 951.750 934,000 891.000 718.470 658,500 648.0D0 609,308 595,000 581.625 569,675 449.032 296.000 242.000 193,905 156,826 108.750

0 h i 0 65 0 51 0 48 0 47 0 46 0 55 0 44 0 44 0 44 0 43 0 43 0 41 0 40 0 $0 0 37 0 35 0 34 0 32 0 $2 0 28 0 26 0 25 0 24 0 13 0 23 0 23 0 23 0 23 0 23 0 22 0 22 0 22 0 22 0 22 0 22 0 22 0 22 0 22 0 21 0 21 0 21 (1 21 0 21 0 21 0 21 0 I 1 0 21 0 20 0 20 0 20 0 18 0 19 0 19 0 19 0 18 0 13 0 13 17 13 0 12 0 12 0 12 0 11 0 09 0 06 0 07 0 04 0 03 0 02

88,888,615 17.73

121



(Cur rency - EUR) A l l secu r i t i e s a re o r d i n a r y un le s s o the rwise s t a t e d

B of

lace vduc code curi-eiicy value assets shares or Descnption County -Iradlng %l<irk<t ne1

Number ol

179.250.000 12,5170,000 50.1 517,000 1:3.7:30.000 11.690.030 11.030.000 10,1uo,000 8.510.000

37.4(50,000 9.090.000 8.940.171717 7.910.000 8,260,000 7.590.000 S.460.000 5.300.000 .5.030,11170 3 .940 .000 3,;50.000 3,410.000 2,920,000

L7.560.000 2.360.000 2.830,000 2.350.000 2.180.000 1,800,00(1 1,560.000 1.217.121 1.290,000 1,230.000 4.020.000

767.000 700.00t7

2,610.000 [email protected]

550.000 220,000 100.~700

1 .OiO.OOO 100,000 90.000

lUL1,000 80.000 60,000 50.000

510.000 32.1 77

180,000

7.480.000 ih.370.000 3.550.000 4.000.000 3.01 0,000 2,000.000 1,100,lJ00 7,735.000 4.000.000

950,000 i70,OOd

Government Bonds Kingdom of Nonvav, 6.75%. 01/15/07 Gowriiment ul Ncdicrlands. 7 50%. 01/15/23 Republic ol Polarid. 6.2516. l0/24/15 Gu\ crtimcnt o l Finland. 2.ij'F. 07/1:4/06 R e p ~ b l i ~ o l Ausrria, 4 65%. 01/15/18 (iovernment 01 Finland, 5.008, 07/03/07 Kcpublic of Portugal. 4 875%. 0Wl7/07 Government ot Spain. 5 50%. 07/30il7 Republic ol Pulanrl. 6.00?a. 05/24/09 Go\ernmcni o l Yetherlands. :3 00%. 07/15/06 French Guvcrnmc:it H u r i d . 4.iOX. 07/12/06 Government of France. 4.25Y0, 04/25/19 Gowr;imcnt oC I ~ a l > . 4 W%, 03/01/07 Republic o l Ireland. 4 2 5 6 . l0/18/07 French ~ I r f i i s u r ~ [iutc. 4 778. 07/12/07 Kingdoni of Beigium. 4.TS9c. 09/28/06 Gowmment ul Nethrrl;rnils. 5 7 3 8 , 02/1.5/07 1:edcrdl Repuhlic o l Germany. 6.00% 01/04/07 Hrllenic Republic. 5.90%. 10V22/22 Hcllcnic Re ublic, 4 65%. 04/19/07 Kcl.'ublic ofireland. 4 6 0 8 . 04/18/16 Kinkdon1 0,' jwec:.u8 00%. 08/13/07 tiel eriic Ktpublic 6 >OX. !0/22/19 Repuhlic of Austi-ia, 5.50%. 10/20/07 Kingdom vf lklpiurn. 6.27%. 03/28/07 Federal Republic ol Germany. 3.00%. 174/11/08 Kcpublic o l Hellenic. 3 708. 07/2LVl5 Government ol Finland, 5.375%. 07/04/13 KepubIrc or Ukraine. 10.00% 03/15/07 Republic of L'kraine. FKN. 5 36%. 0R/05/09 Russian 1,ed~rauon. Reg 5. 5.00%. 03/31/07 Republic n l Poland. 8.5U8. 11/12/06 Lowi-nnicnt UI Ncthrrlands. S 25%. 07/15/08 Republic of Ausiria, 5 00%, 07/15/12 Kcptiblic or Poland. 8 50'b. 1)5/12/07 Republic of Slovakia. 4 95%. 03/85/08 Govcrriment of Spaln, 6 (70%. 01/31!08 Russian Federation. 1 I , ? 5%. 06/24/28 Republic uf Uulgaria. 7 50%. 01/15/13 Kingdom ol Sweden, 5.00%. 01/28/09 I I e l l c n ~ Kepubhc. 4 (;&, 05/20/13 Republic ol Ireland. 5.00%. 04/18/13 Repuhlic of I!kraine. 7.65%. 06/11/13 Governmcrir ol Iialy, 5.00%, 02/01/12 Government o l Spain. 5.00%. 07/30'12 Russian 1,ctkr;ition. 11.170'6. 07/24/,8 Klngdom Lid 5wwdcn. 6 50%. 05/05/08 French Governmenl bond Oni. 3 00%. 07/.5/09 Kingdurn of Sweden. 5 50%. iO/08/12

Securities Maturing Within One Year Hcllenic Ktyhlic. 2 7.j'!, 176/21/06 Kingclom o 5weden. 3 >O%,. 04/20/06 Gowmment of Spain. 3.20%. 01/31/06 Gcrman Treasuv Bill, 0 00%. 07/13/07 Federal RcpubliL d Germany. 2 00%. 03/10/06 Federal Republic 01 Gcrrnari), 2.7% 06/23/06 hP1 I:lrlancc PLC. 9 625%, 06/30/06 Lorwegian Ircasury thll, 0.00%. 09/21/05 Kepublic of Poland. 0 00%. 04/12/06 Government of Spain, 4 9S%, 07/.30/05 GovcrnmcnL u l h l y , 3.iOLFC. 09/15/05

tiOR XLD POI. FIL

1,m PRT tSP POI. K LD FU4 I T A ITA IKI. FRA REI K I D DELI GRC GRC IKL

SWF GRC AUT BEL DEL! GRC FIX C K K 1!KR RUS PO1 N LD dti.1 POL s5s LSP RUS BGU S W E GKC IRL

I:KR IIA ESP RUS SWE FU4 SWF

wr

GRC SWE LSP DELI 11 I.. I: DEL: GBR NOR POL ESP 1 TA

UOK FL!R PI .Y EI!R ELIR I X R EUR LC'H PI .N EL:R EllR tC!R EUR FI!R ELIR EI;R ELR t L K FUR FVR El.!K SEK EL!U EllR EtiR EUR ELR EUR EI!R l i j D L:SD PLS L U K EL:R PI li SKK FER USD EUR SLK EIJR IH 'R L'SD El!R LL'K l;SD SEK EUR SEK

EUR SLK EUR ELK El:R W R GBP S O K PLN EI;R EUR

23,140.776 18.993.125 13,982,644 13.836.401

11.6S9.085 10,676,912 10.363.478 9.193.480

9,161,828 8,659.431 8.594,117 7.957.606 5.753,748 5.579.647 5,326.217 4.1 70.490 4.002.547 3.563.211 3,303,230 3,285,287 3.111.188 3 .045.080 2.51 7,343 2,230.853 1.848.726 1,829.490 1,301,175 1,151,410 1,137,369 1.045.174

795.115 691,547 636.0:4 602.772 330.456 127,610 124.200 110,360 103,011) 91.323 90.296 68.244 61.890 60.617 35,406 22,503

1 3 . 2 ~ 9 8

9, 1 n 3 . m

~32.848

228.648,Y 12

- _ I ,33!.073

4.580.258 6.053.107

3,997,400

2,014.600 1.647.771

974.103 956,069 951.T10 7S2.063

3,009,187

TOTAL BONDS

TOTAI. T'RANSFERABLE SECl!RITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LlSTlNG

+.82 3.79 2.79 2 76 2.67 2 3.3 2.13 2 07 1 83 183 1 8 3 1.73 1.71 1 59 1 1 5 1 1 1 1.176 0 83

0 71 0.66 0.66 0.62 0.61 0 50 0 44 0.37 0 36 0.26 0.23 0.23 0.21 0.1; 0.16 0.13 0 13 0 12 0 07 0.02 0.02

0 02 0.02 0 02 0 01 0.0: 0.01 0.01 0.00

45.62

0.80

0.02

1 50 121 0 91

0 60 0 40 0 33 0 20 0 19 0 19 0 15

o no

32.465312 6.48

69 84

122



(Cur rency - EUR) All securi t ies a r e o rd ina ry un le s s o the rwise sia1t.d

tiurnbcr of shares or Descripiiou

iare value

% ui Countr) Trading Market Wl

cutlc currency value assets

TWXSFERABLE SECURITIES rmrr ik Oh A N O l l IER REGLL4TED hlARKET BONDS Corporate Bonds Lloyds TSB Bank F1.C. 6.3570, 10/29/4!) Society Lloyds. 5.6256, 11/17/24 BNP Paribas, 5 868%, 01/16/49 Royal Bank of Scorland F1.C. 5.50%. 11/29/49 Gie Suez Alliance, 4.25'%, 06/24/10 Puhlrcis Grcrup SA. 4.1255, 01/31/12 National Grid Transco PLC. 4.375%. 03/10/20 AIR L K 1 LF. 4 781%. 12/29/49 huun 1:inance BV, 4.125%. 12/17/14 Rockwood 5pecidlues Group l r ic . 7 625B. 11/15/i4 .I DC .45. 3 8T5$, 12/09/11 Deursche Telekom International hnance h \ . 4 00%. 01/19/15 4 h n z Finance I1 L W 6 508. 01/13/25 Veolia En\ironnmmeni. 6 125%. 11/23/33 \IPS C-APIIAL .IKC!51 1. 7 Y Y S , 02/07/11 IohnsonDivcrsey liic , 9 625%. (75/15/12 C.hcsaprakc Cvrp . 7 00%, 12/15/14 UCP Crystal L:.S Holdings. 10 375%. 06!15/1$ C!l15 Jersey. 4 50% 09/16/19 Mtu Aero Engines Invest, 8.25%. 04/01/14 IISBC Ca ita1 Funding (Euro 1). R 03%. 06/30/12 JSG Fun&:ng PLC, 7.758. 04/01/15 Fonterra Co-Opcra[i\e. 5,25%. 05/21/0T t luntsrnan Inteinational, 117 125%. 07/01/09 Da1mlcrChy5ler NA Holding. 5.625% 01/16/07 Rntax Group FLT, 11 25%. 0511 5/11

GBR GBR Flu. t iBR I K A FRA GBR GRR

EI!R EUR kUK EI!R EC:R LLK FVR ELR

3.38O.812 2.7 18.44 1 2,30T,000 2.290.500 2,059,200 2,055.296 2.036.200 1.996.902 1.45 1,1017

0.67 0.54 0.46 0.46 0.41 U.41 0.41 0.40 0 29

2,850.000 2,500.000 2.000.000 2,250.000 1.930.000 2,1700,000 1,000,000 2,000.000 1,400,000 1,3!J0.000 1.300.000 1,200.000 1 .000.000 1.00!J.000 1.000,0(70 1.200.000 1.200.0(3(3

975,000 1,000,000

Y00.000 700.000 r)00,000 500,000 5017.000 430.000 300.000

9.800.0D0 7,300 ,17170

343,200,000 7,550,000 7.450,000

47.698024 3.550,000

124.000.000 .3.100.000 2.550,OOO

75,61717,001) 74.500.000 28.200.1700 26,000.000

600.000 4111000

51717,000

EUR FLR ELR E l i K

EL!R L U R EI!R

EUR

1,316,250 1,204,892 1.236.000 1.227.500 1,220,000 1.2 15.564 1,170,000

0 26 0 26 0 25 17 25 N LL)

FRA C!SA LISA

0 24 0.24 0.23

C!SA us.4

DEL JER IKL NZL USA L:SA CRR

JER,

EUR EL!R EI!R LC!K El!R

1.155.000 1.I26.125 1.075.397 1,049 ,069

902.283 720.0170

0 23 0 22 0 21 0 21 0.18 0 13 0 11 0.10 0.09 0 07

EUR I X K ELR ELR LrLK

527:165 521,250 449,845 332.250

36,834.041 7.34

Go*ernrnent Bonds Government of Frmct'. 6.00%. liV25/25 Fetlvral Republic ol Germaiiv. 6.25%. (71/04/24 RepJblic of Slovakia. 4.80%: 04/14/09 Federal Rcpublic ui German!;. :3.75'%. 01/04/15 RepJblic of Austria. 5.875%. 07/15/06 Kingdurn ot hede l i . Index Linked. 3 50%. 12/01/15 Kingdom (of Relgiurn. 5.511%. 09/28/17 Ke Jblic 0 1 Slovakia 7 50% 03/13/! 2 H & ~ K Republic. 3'15%. 06li1/07 Rephlic or Ircland, 4.50%. 04/18/20 KepJblic 01 Slovakia. 5.30% 07/12/19 Repiblic or Slovakia. 5.00'x.. 01/22/13 RepJhlic uf Slo\-akia, 4.90%. 02/11/14 Repuhlic of Slovakia. 4.90%, 0UOYl0 Kcpublic vl Ukraine. 6.875% 03/04/1 1 Republic of Poland. 5.75%. 09/23/22

EUR EI!R SKU EI.'R

13,194.720 9.971 ,800 9.6 18 348 7.953.925 7.742 .040 6.035.298 4.326.385 4.079.745

2.869.61 7 2,354,449 2.173.298

73i.839 523.453 1 12.397

3,167,828

826.536

2.63 1.99 1 9 2 1 5 9 1 7 5 1 2 0 0.86 0.81 0.63 0.57 0.47 0 43 0 17 0 15 17 11

LC:K SEK EUR SKK FUR E1!R SKU SKK SKK SKK C! 5 L1 FLti

IRL sss 555 sss

0 02

7S.bR8.178 15 10

Securities Maturing Within One Year Russian I.erlcration. 3 00%. 05/14/17h RUS L'SD 408.834

TOlAL BONDS 112.931.053 22,52

.IOTAL TRANSFERAB1.E SECUKIl~lES DEALT IN ON ANOl-HER REGULATED MARKET 112.931.053 22.52

12.3



(Cur rency - E U R ) A l l securi t ies a r e o r d i n a r y un le s s o the rwise s t a t ed

huinher ul % 3r shprcs 101' Description c:ountr). Trading llarket net

lace value curlt. currcric) \ h l F 35w5

1,6017.000 1 .:3oo.ouL~ 1.300.000 1.300,000 1.200.000 1,2L70.@i)U 1.100.000 1,2oo.c)0c)

9017.000 1.@0@,00o

900.0017 600,000 h00.0017 900.000 750.000

IR%N1;FERABLE 5I;CC:KI I ILS hO I .ADMITTED TO A t i OFFICLIL 5TOCK EXCHAhLE LISIILG NOH I)liAl.l' Ih Oh ASC)IliLK UGC:L4'IEL) k1ARKFT BONDS Corporate Bonds C:enti-al European Media Enterprise L d . 134.4. R 25%. 05/15/12 SGL Carburi Luxcrnbourg 54 , 144.4. 8.50'k. 02/01/12 Riierdcep Groiip Ltd.. 144'4. Y.25%, 04/15/11 Culhgan Finance Corp.. BV. 14.tA. 8 00%. 10/01/14

L,st.lic t lulri~ngs Groiip AB. 141h. 7 6258. 03/15/11 Telenet Cominunicatiun NV. 9 00%. 12II 5/1 3 l.agt. I)eiry Itrdusiries SA, 144A. 7.50%. 01/15/15 Codere Finance SA. 144.4, 8.256. 06/15/15 Riilax Group FLC, 144:i. 11 2 5 5 , 05/15/11 Huntsinan 1nternatiun;rl LLC. 144A, 7 50%. 01/01/15 Calplne Crrrp , 141A. 8 50% @7/15/10 Schefenacker AC;. 3 50% 01/11/14

TOTAI. BONDS

TOTAL ~1~KANSFEMBI.F. SECURITIES NOT ADMITTEL) TO AN OFFICIAL STOCK EXCHANGE LISTING NOR DEALT IN ON ANOTHER KEGUI.ATED MARKET

TOTAL INVESl-MENTS

t 1,luailrlg bles arc indicated as at June 30, 2005

BhlU 1 LIX IRL

LLD LLX GHR

ESP GBR L S A USA L)LL

EUR FL!R E1!R t U R ELIR FLR

LUR EUR FV R USD LUR

1.728,000 1,430.000 1.413.750 1.381.250 1.305.000 1.191 ,@00 1,139.875 1.1787.831 1,023.750 1,003,750

921.000 664,500 609.637 576,449 496,875

0.34 0 29 0 28 0.28 0.26 0.24 0 23 0.21 17.20 0.20 0.19 0.13 0 12 0 12 0 10

15.976.660 3 20

3 20

15.976.660 3 20

478.910.582 95.56

124

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Fund -


(Cur rency - USD) A l l s ecu r i t i e s a rc o r d i n a r y unless o thc rwise s t a t ed

Lumber of sharcs cir L)cscripticin

face d u e

IIG.N5FERABLE 5ECUKl.lltS AD41111ED -1-0 AN OFFICIAL 51 O C K EXCHALGE LKIlhG SHARES Aerospace & Defence Lockhccd Martin C:oq> I!S.4 ll5D Guorlrich Corp usL\ tlw RAE S!srerns PLC GRR GRP

R ~ I I S - R & Gtciup PI.^.. H GUK GRP Rolls-Rovce Group FLC GBR GRF

:37y,joo 307.000

1,457.926 lB7.166

9.358.300

826.586

3,705,928 797,300

3.1 70.794

I,Tih.h40

585.700 186,905

1,777,900 169.410

436.441 209.067 260.99 1

539,200 2.184.949 1.829.440

550,000 517.700 556,787 20.305

371.800 3,600.000 1.070.400

225.000 4,244.800

338.000 174.600

2.873.600 2,527,900

1.323,300

61 7.782 760 .DO0

24,618,165 16,670,720 7.495.830

963,140 16.849

1.41 0.95 0.43 0.05 0.170

49.764.704 2.84

Air Freight & Logisiics

Airlines British Airways F1.C ,411X Corp Qariras Ainvays Lid.

L)t.uisrht. PUS^ ACT DEL: E U R

GHK GHP I!%+ 1.3D ALS .ALL)

19.303.176 1 1 0

17.493.632 9 ,635.303 8,136.356

1 .00 0.55 0.47

35,285,491 2 02

8.119.033 0 36 Auto Components GKL FLC GBK GBP

Aulomcibiles Uayerischc Moiciren Wcrke AG \'olkswagen AG

DEL ELR L)l: c: LLK

1 5 3 0.49

37,361.375 2 02

Capital Markets Nornura Holdlrigs lric LB5 ilG

21.022,007 13.216.571

120 0.76

34,238,578

17.205.2 I 3 13913.346 11,621.929

1 96

0 Y8 (7 80 0 66

h LD ELR DEI! ELR USA L!SD

42,740,488 2.44

Commercial Banks Bank of Anienca Coq'. Kurrlca Rank ,411 Lloyds TSB Group FLC: Hana Rank ForeninRcsparbarikcri .4U, ..\ Banco Saiitandcr Central Hispano 5.4 Standard Chartered PLC

1.40 1 1 3 0 89 0 84 0 69 0 37 0 0.2

24,592,912 19.870.718 15,501,785 14 726,921 12.017.029 6.460.872

371 027 ESP EI!R GL<K GHP

93.519.264 5 34

Commercial Services & Supplies H k R Block Inc. Brambles Industries FLC

1.5.4 L!SD GBR GBP SWE SEK

21,693.530 1Y,734.508 17.R74.471

1.24 1.13 1.02 0.77 0 69 0 67 0 45

5.97

Securitas AB. R Societe BIC SA Remokil Iniiial PI.(:

FR% EUR GBR GBF

CHE CHF LS.4 L : w

13,424.387 12.1 47.880 11,664,380 7,954,938

104,397,294

Communications Equipment Avaya Inc Rriush Sky Rroarlcasuri,q Group PLC

USA GBR

USD GBP

23,4116,672

47,804,944

23.223.Yl3

23.888,m

17,469,375 7.408.456

1 3 7 1 3 6

2.73

1.33

1 0 0 0 -t2

Computers & Peripherals S e a p i e Ttchnvlcigy

Diversified Financial Services 1% Groep N V Cheung Kong Hold in~s Lid

1 LD EI!R HKG H KL)

24.877.831

125



(Cur rency - USD) A l l s ecu r i t i e s a r e o rd ina ry unless o the rwise s t a t e d

liumber or ' fo o f ihai-cs or Description Ciiuritr) 1 rading Markct net

face value code currency valut. il5St"l5

3.09 3,500 1.301.:10 1.600.000

384.7117 380.655 300.000

1.683.398 l.tlY7

156.000

2.227.500 216.9417 72 1.293 $09,52 5 306.0Ui)

1 (70,200

lC)0,000 76.000

8.132.000 1.001.Y00

604.090 1.158.781

242.500

1.833,632 .32.000

251.908 163.17(70 646.203

1,065,000 32,266

269.7S3 404.800

3.21 5.600 4,1.32,012

s.ti1,700 4.610.479

1 .lUO.OOO 837,465 462.000

251~.00r3

334,300 805.375

NOR FSF PRT L!jA C I W KCOK NZL JPK X1EX

GUK L)EC! ESF t:K;\ K O R

X O K FUR EL! R CSD CAD LCD liZD

1.SD JFY

GRP E L K ELR EC:R l!SD

LSD

CAD JW

GRP GRP USD LRF uji)

GRP CHT: LSD USD GRP

J FY um

USD I:SD L5D ALD

ELR GHP

J PI ' EUR J PY

L! 5 L)

FUR GRF

24.733,799 2 1.326.336 15.178.172 Y,136.862 9,010,689 8,385.000 7.040.565 $,701.146 2.946.840

1 41 1.22 0.87 0 52 0.52 0 48 0 40 0.27 17 17

102.459.409 5 86

Electric Uiiliiies Valional Grid Transco FLC: E.ON A(; Ibcrdrula SA. Ur Sur.: 5A Korea Electric Puncr Curp.. AL)K

2 1,608,199 19,340,722 19.043.636 11,114,581 4.795.020

1.23 1 1 1 1 09 0.64 0.27

77,902,158 4.34

Electrim1 Equipment Thomas k Betts Corp

Electronic Equipment & Instmrnenls Celesticn Inc. Hitachi Ltd

L!SA 2,829.6.tU

2.677,332 462.1 44

0.16

0 15 0.03

LAN JFN

3.1 39.476 0 18

155 118 0 66 0 34 0 29

Food & Staples Retailing \\'illiani Morrison Supermarkets FLC: Routs Group PLC Krogcr Co J Samsbur)- PLC Albcrism's Inc

GRR GRR \:SA GRR L5.4

27,096,469 20,749,487 11.497.833 5,921 468 5,014,900

70.278.157 't c)z

17,508,211 8,188.485 8,013,104 7.626,770 6.233.831

1 00 0 47 0 46 0 43 0 36

GBR CHE USA us.4 GRR

47.570.491 2.72

Health Care Equipment 6r Supplies Olympus C.orp Hojpira lnc.

JPli LSA

20,465,987 1,258,374

117 0 07

21,723,361 1 24

28,870,701 27.991.920 25,789,l: 2 14.Y13.603

165 1 60 1 4H 0 85

Health Care Providers & Senices ClGliA Cnrp Amensourcellcrgeri Ccrrp. Senice COT International kh)nc Group L . d

1!S'2 L!SA us.4 AI!S

07.56.5.336 5.58

Hotels, ReSrdUrdnlS & Leisure Acccrr SA Compass Group FLC

FRA GRR

25,365 OS2 19.368.290

1.45 1.11

44.733.332 2 56

133 1.21 0.91

Househuld Durablcs Makita Corp Kuninklijkc Fhilips Electronics NL Son). Corp.

J P N NLD J Ph

23,208,228 21,178,557 15.922.41 1

60.309.196 3.47

Household Products Kirnbcrly-Clark Corp

Industrial Conglomerates Siemens A(; Siniths (;roup PLC

C:SA 0.89

1 $4 0.76

L1I.C' GRR

25.170.016 1:3.25Y. 161

78.42Y.177 2.20

126



(Cur rency - USD) A l l securi t ies a re o r d i n a r y un le s s o the rwise s ta ted

huinber ol shares or I)csiriptieiri

lace d u e

% 01 Coun1n P a d i n g Marker i i e i

cuck currency value assets

Insurance 255,093 610.1 10 412.168 100.000 7T.323 24,000

340.000

431,600

702,100 176.500

32,100

1,775,800 1.578,500 Y57.433

1.100,000

240,000

2.698.392 1.736.500

76.700 696,427 556,580

1,051,800 33 1.060 7.575 5.600

1.088,141 903,600 846.460 2200017 322.660 lh8.854

1 .2+1.459 2 15.000

15,510

7,000.000 1,080.000

3.300

726,000 3612.536

[:SA 11SD 15.241.867 1-1-,4 ELR 11.878.1 17 F M ELR 10.308.564 B M C ' u 5 u 7 442 000 C H F CHF 4 753 574

0.87 0.bS 0.59 0.43 0.2T 0 03

,411,lak Cur Ritiiiione Afriatica di Sicaria SPA .4XA 5A NL Capital Ltd.. A h i s Kein5urance Cu AON Corp

. .

(;<A 1!SD hb0.960

50.225,082

Internet Software &I Services Check Foini Soli wart. Technologies 1 .id

IT Services HeLironir I h i d Sywcms Curp

Leisure Equipment 6r Products A,& Gwiert k \ Ninicndo Cto , I id

0 38 I5R L'SD 6.732.000

I;SA L!SD 8.308.300 0 47

111 1.06

BFl LC!K 19,411 924 JPN J FY 18,471,671

37.883.595 2 17

Machinery Atlas Copco AB, A

Media Reed Elsebier W DIRECTV Group Inc M:o!ters Kluwer YV Pearsun PLC

909.333 0.03 S\VE SEK

Y LD EllR 24.753.120 24.466.7i0 18,327.292 12.956.593

1.41 I 40 105 0 74

t'SA NLD GRR

80,503.755 4.60

Multi-Line Kelail Target Corp

Oil & Gas Shell Transpun 6r .I rading Co , PLC RP PLC 'Total SA. U En1 5pA Repiol YFF SA

0.75 LS.4 C!SD 13.058 400

26,236.1Y3 18,073,960 18.032,3 19 17,957,359 14,250,388

GBK GBR FR4 ITA ESP

GRP GRF EUR E U K EUR

150 1.03 1 03 1 03 0 81

5.40 94.550.219

Paper & Forest Products I;P!v-K) iiimcne Corp International Paper Co. Yccnah Papcr Iric. Norskc Skogindustner .45A. A

20.171 855 10,001.323 234,598 92.333

1.15 0.57 0.01 0.01

30.500.109 1.74

Pharmaceuticals GlaxoSmiihKlirir PLC Ptizer Iiic. Rris:ol-blytn Scluibb Co Merck KGM Abbott Labora1oric.c Sanoh-A\-eniis Shire Pharmaceuticals Group PI .C Ono Fhartnactwiical Cu . k d Onon OYJ

26,335.581 24.92 1,288 21,143.571 17,728,840 15,813,567 13.872.813 13,610.880 10.202,995 298.865

171 143 121 101 0 90 0 79 0 78 0 58 0 02

GHK GBP 1!5A USD 1,SA I!% UEU ELR C'SA USD FLI EL'R GRR GBP

J PY E LUR

143.929.403 8 23

Real Estate Hang Lun Froperlies 1 rd Swire Pacfic Lid.. i\'

tIKG HKD HKL HKD

10,314,187 9,554939

19,869,126

1.575.834

1.14

Semiconductors & Semiconductor Equipment Samsung Llectronics (-0.. Ltd.

Sotware B X K Snhwrt. lric Sywpsys Inc.

0 09 KC)R KK\V

13.031 700 6.043.475

0.74 0 35

[!S.4 USD USA USD

19.075.1i5 1.09

127



(Cur rency - USD) Al l s ecu r i t i e s a re o rd ina ry unless otherwise s ta ted

I'hrilts & Mortgage Finance 243 $92 I! 5 Rancoil-,

Wireless Telccommimication Services 2.800 Knnl Gorp

.IOTAL SHAKES

.101A1. ~1WNSFFHABl.E SECCRITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TOTAL INVESTMENTS

C5.4

JPY

Trading h1arkc.t currency value

ClSU 7.121,646

JPY 12.959.211

1.626.123.541

1,626,123,541

1,626.123.541

0.3:

92.94

92.Y-t

128

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global (Euro) Fund -


(Cur rency - E U R ) A l l s ecu r i t i e s a re o r d i n a r y un le s s o the rwise s ta ted

% of shares or Dcs;ripiion Cuuntp Trading hlarkct net

Number ul

lace value aide currency Y d U F 3swCIs

I~lGihSFElGIBLE SECl!RIIIEI; ADMITTED TO AN OFFICI:\L. STOCK FXCHALCiF I JSTISG SHARES Aerospace & Dcfencc BAE Systems FLC GllK Shanghai Friendship C;ro:ip Iiic , (10, B CHN

1.740.615 2

416,500

2.600.000 490,000

1,026,4017

1,402,560

330.300 146,000

1 .062.900 121,500

180,800 184.500 161.700

2.042.500 320.000

1 , i 1 0,300 5OY.400 55 1.492 804.000 1T2.160

229,620 1,860.705

572,000 158,900

3.080.700 226,000

1,516.000 1.620.900

817,500

1,3 1 7.000 27Y.400

I.YOl.600 835,852

1 ..300,000 2,273,921

382.328 296.000 230.000

1,120 21 3.600

GUP I:SD

EUR

AUD L:SD LBF

GnP

ELR LUK

J PY CHF

El!R

E U K w?

5EK I!SD GBP SEK GUP SGD KRW

KSD GBF SEK EUR GRP LISD

7,396,114 1

0 92 0.00

7.396.1 15 0.92

Air Freight 6r Logistics Deutschc Posi .4G

Airlines Qdnias Airways L i d .4MR COT. Rnush .4ir\r,ays PLC

8,038,450 DEL: 1.00

AUS L!SA LBR

5,513,946 4.904.072 4.004.204

14.422,222

0.68 0.61 0.50

1.79

Auto Components GKh PLC

Automobiles Ba!erische Moiliren Werke AG Volksw-agcn AG

GRR

DEU LILC!

5,357,375 0.67

12,501,855 5.511.500

1 5 5 0 69

18.013.355 2 24

Caaital Markets liiokura Holdings Iiic 1!BS AG

JPh CHE

10,516.795 7.833.802

1.31 0.9;

18.350397 2.28

Chemicals BASF AI; DEL Doa Chemical Cu [!SA A k m Nobel I i V A I D

9 ,944,000 6,789.935 5.26a.186

1 2 4 0 84 0 65

22.002.121 2 73

Commercial Banks hordca Bank AB Bank of Amcnca Ccirp lkI)d5 ISB Grou PLC Forenin sparbanien AB. .4 SrandarfChancruI PLC DB5 Group Holdings Lid Hana Bank

S\VE l;SA GUK S\VE GBR SGF KOR

15.336,0.52 12.062.203 10.576.533

1.91 1.50 1.31 1.15 I .03 0.70 0 47

9.238.814 8,328,339 5.634.739 3.809.761

64.986.444 8.07

Commercial Services & Supplies LiSrK Block Inc. Hr;mible5 Industries PLC Sccuritas AB, B Soclelr UIC 5.4 Rciitokil Initial FLC R R Donnclky k Sori, Cu

[!SA LBR SWF F f u GBR ('5.4

1 1.073.047 1 3 8 1 05 0 98 0 97 0 90 0 80

6 08

1 47 1 3 9

8.429.81 3 7,894,047 7,839359 7,286,337 6.445 698 , ,

48964,301

11.839.698 11.145.412

Communications Equipment Bntish Sky Rroadcasung Group PLC Avaya Inc

22.Y85.110 2.86

Computers & Peripherals Seagate Technolop

Diversified Financial Services Cheiing Kong Holding5 Lrd I N ; Grocp N\'

11.857.181 1.47

HKG t 1KD N LD E1!R

10,610.026 6,529,578

1 :32 0.81

17.1 39.604 2 13

Diversified Telecommunication Services Telenor ASA Tclefonica SA Prrrtugd .Tclecom SLFS SA Tclccom Coru. of hew Zealand Ltd.

1 O R NOK ESP EKR FRT k l i H

12,565.404 1 1.31 7.438 10.192.000 7859.822 7,475,701 5259.528 4,514,483 3,966,721 3.334646

1.56 1.41 1.27

0.93 0,65 0.56 0 49 0 41

0.98 -. ..

hZL KZD C A r i CAD KOR LSD us.\ LSD J P N J PY M1FS L! 5 L1

I3Ct Inc. KT Corp., ADR jBC Communications Inc. N i 3011 Telegraph B Telephurir Curp rchc>Tiu, dc Mexico SA de C\: iTelmex) I., A D K

66.485.743 8.26

129



(Cur rency - EIJR) Al l secu r i t i e s a re ordinary unless o the rwise s t a t ed

% of sharcs or Description Countr\. Trading Markct net

race \a11le code currency ralue assets

hurribcr u l

Electric Utilities Smrn.il Grid Tr~insco PI .C Iloerdrola SA. Br E mi AG 5 l l t . Z 5 4

1.661.100 423,01)0 114.80(7 232.700

73,600

985.000 250.000

4.58.3.000 1,099,200

435.400 1.190.147

278.000 692.300

24.400 455.300

19,350

1.032.50(7 96.500

1,255.600

2.875.h30

5517,000 3T3.400 201.000

178,000

197.200 603,800

62 1 .000 155,796 309.825

72.000 58,800

102.300

121.000

799.200

052,200 736.696 970.001) 940.0(70

GBR ESP DFL! FRA

USA

J PN CAY

GBR GRR [!SA GBR

LS.4 GHR CHE GBK

L!CA

USA I!% AL'S

GBR

JPY N L.D JPY

1:SA

DEI! GBR

GRF ELR LC'K EIJR

1!5D

J PY L!SD

GRP GBP L:Sn GBF

L w GUP CHF GUP

L!SD

1;SD I S D A C! 13

LBP

J P? ELR JR

I:Sn

FUR GBP

FI!R 11SD EUR CI 11. I S D

uji)

JPY

SEK

LSD EUR EUR GBF

13.31 7.20') 9.229.860 8,458.464 5,219,461

165 1.15 1 05 0 h5

4.50 36,224.994

Electrical Equipment 1 tirrrrids B t 3 t . r ~ Corp

Electronic Equipment & liistruments Hitachi Ltd Cclemca Inc

1.717.747 (721

4,950,125 2,768,608

0.62 0 34

7.718.733 0.96

Food & Staples Retailing \'dliam Morrison Supermarkets PLC Roois Group P1.C Krogcr Co. J 5ainsbury PLC

12.623.130 9.910.808 6,847,685 S.026.2h.3

157 1 23 0 87 0 62

3.27

, .

34.407.976

7,308 436 5.519.491 5,160 122 3,592 889

0.91 0.68 0 64 0.45

21,580,948 2.68

623.680 0.08 Health Care Equipment 6r Supplies Hospira hic.

Hcalih Care Providers 6r Senices Senice Corp Internatiunal CIGiL2 c o r p bki)ric Group Lid

12.808.859 8.53'5.902 3.745.320

1.59 1.06 0.47

25.090.0Rl 3.12

Hotels, Resiauranis k Imisure Compass Lroup I'LL

Household Durables Uakita Corp Kcini:ikli]kc Philip:: Flmronics li\ Son! Cnrp

9.983.776 1 24

8,940.035 7.804.060 5.725.053

I l l 0 97 0.71

22.469 ,148 2 79

9.207.496 114 Household Products Kirnht.rl!-Clark Ciorp

Industrial Conglomerates Sirrnt.ri3 AG Siniths Group FLC:

11.910.880 8.215.379

1 48 1 0 2

2 50

1 23 0 96 0 80 0 45 0 45

20.126.259

lnsurance Riunicinc ..\rlriatica rli Sicurla 513.4 Allstate Ccrrp A\.\ SA Swiss Reinsurance ( :o S L Capll'll L t d . A

ITA L!CA FRA CHE BMl!

9.901 890 7.683.391 6.304 083 3,658.095 3,616,459

31.353.9 18 3.90

1,629,098 0.20 IT Senices Elcciroiiic Data Systems COT

Leisure Equipmen1 6r Products Ninwndo Co , 1.1d

Machinery Atlas Copco '48, A

Media

h'Liltt'r5 Kluwr h\: Reed Elsewi- N\ Pearson PLC

L71KECI\ Gruup lr1c

10.465383 1.30 JPN

1.30 SWF. 10.480.2,8

12.197.658 11.654~31 11.174.400 9.150.453

1 5 1 1.45 139 1.14

44.177.052 5.49

130



(Cur rency - EUR) A l l secu r i t i e s a re o rd ina ry un le s s o the rwise s ta red

Nurnbcr ul shares CII Dcssriplion [, . . . dLt Laluc

ok. ur Couiiir> Trading Market net

c0dc c u rrcnc) value dSSt'tb

167,400

1.689,567 561,000 511,200

1,178.669

510.17(70 174.600

5.393

545.600 185.000 149.333

193.300 375,000 187.000 255,100

872,300

1 ,080,000 5.2011.000

13,900

580.000 249,200

1,700

Paper & Forest Products i.'PM-K)rninene Ctorp Norskc SkoRindusmier A5.k '4 Neenah Paper hic.

Pharmaceuticals Pliztr Inc. Merck K G M SanoW.icnus Shire Pharrnaceudcals Gi-o~ip PLC Abbott Libufiimrics GlaxoSmithKline FLC.

Bristol-Myers Squihb (lo. OIW PhdItIlact.LlLita1 CU . Lld

Real Estate

Hang Lung Properties Ltd swi-F PaclrlL I . ~ ~ I . A

Semiconductors & Semiconductor Equipment Samsung tlcctroriics Crr . Lid.

Software B M C Software Inc jpilpsys Inc

Wireless Telecummunication Services KDDl COT.

TOTAL SHARES

TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TOTAI. INVESTMENIS

U5D

GBP EUR FUR GBP

ELR NOK 1!SD

u5u EUR FVR GBP USL) GBP I PY

1!SD

HKD HKD

KKW

L!SD l!SD

7.527300 0 94

13.576.700 11.870.760 10.803.672 10.138.810

1 60 1 47 1 35 1.26

46.479,932 5.77

8,083,500 2.379.208

138.035

10.600,743

12,436,129 12,321.000 10,139.711 7.903.806 7,837,585 7.500.765 T.334,110 5.266.468

70.739,574

1 00 0 30 0 02

1.32

1 5 5 153 1 2 6 0 98 0 97 0 Y3 0 91 0 66

8 79

7,896,6817 6.332.233

0 08 0 . i 9

14 228,913

5,880,298

8.604.17 1 3.433.209

12.037 380

1.77

0 73

1.07 0 43

1. 50

I P S JPY 6,502.790 0.81

787,252,355 97.81

787,252.355

787,252355

9 i 81

9 i 81

131

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Balanced Fund -

SCHEDULE OF INVESTMENTS AS OF JUNE 30,2005 (Cur rency - USD)

Al l securi t ies a re ordinary U n l F S S otherwise s ta ted

IILUSkEIL4HLL jELLRIIIES ALJhlII ILL) .IC7 Ah Otl~lClAL SIOCK LXClL4NGE LISTlhG SHARES Aerospace & Defence Roll~-Ro);ce Group FLC (;BR HAL C),lcrn, PLC GDK Rolls-Royce Group F1.C R GBR

459,:44 364.850

22,957,21717

220.1 73

134.476 209.320

65S.880

134,500

9,200

73.080 36.2417

358.130

88,950 25,5617 32.380

248.850 468.040 11 4.400

2 5.373 78.947

858,281 347.951

58,750

450.iP0

305,170(7 97.590

262.2177 169.470 121.348 86.710

125.040 93.190

430 23.3,460

260

231,160 26.630 7 1,700 40.650 25,470

C X J GBP GRP

LUK

USD GllP

GBP

FL!R

HKD

IXD CHF GBF

Ell R ElJR C:SD

AllD SEK GBP SLK HKD

GRP GRF I!SD

GRP

HKD EllR

LCIK l1SD CAD L:SD I:SD L'SD JPY IiBF LSD

LRP FLR EUR ELlK KRW

2.362.71 5 1.875.852

31.332

0 57 0 49 0 01

4.279.899 1.03

Air Freight & Logistics I)culsihc Post AG 5.141.607 124

I7 39 0 24

Airlines AhlR Corp Rrirish Airnabs P I L

1.62R.TO4 988.084

USA GRR

2.616.588 0 63

Auto Components GKK P1.C 3.026.801 0 73 GRR

Automobiles Rayrische Motoren Werke AG

Biotechnology CK I.ik 5Licrict.s Irilerriariorial (1 kildirigsl lnc

Capital Markets Morgan Stanley lJB5 :\G Ainvescap PLC

6.159,UTl 1.38 DEL

tlKG 1.279

3,834,508 2 827.273 2.136.423

0 00

0 92 0 68 0,52

USA THE GRR

8,798,205 2 12

Chemicals Ak;n Uohel KV BA5F A(; L J w Chemical Co

3.506,553 1.701,010 1.441.882

0 84 0.41 17.35

U LD DEI: C!SA

6.649.445 1 60

Commercial Banks Nauonal Australia Rank Lid hordea Rank AB Royal Bank of Scotland Group FLC 1~ure;iiri~ssparbariken At%, A HSBC Holdings PLC

5,828,632 4 252,241 3.455.302 1732.512

408.144

1.40 1 03 0 83 0.42 0 10

3 78 lS.676.831

2.456.251 2,455,598 2.027.462

6,939,311

Commercial Services & Supplies Kcnrukil Iriilial PLC Brambles hidustries F1.C R.R Donnelley k Sons C:o

0.59 0 5Y 17 4Y

G 3 R GRR I- CA

1 h:

Communications Equipment British Sky Broadcasting Group PLC

Ilivcrsificd kinancial Services C:hcu!ig Kong Holdings Ltd IhG Grucp h V

4.234.133 1.03 GRR

2,973.131 2.759.6(18

I IKG fi LD

0 T 2 0 66

I 38 5,732,739

Diversified Tclecommunicalion Services Telefonica S A K 1 Curp.. ADK RCF Inc Phili pine Long Distance Tclep!ione Co.. ADK T c l c / k s de Mexico 1;; de CV ilelmcx), L. ADR CBC Curnmunic.ilioris lric Kippoii Telegraph 6z Telephone COTP. Cable & Wixkss PLC Philippine 1 .ong T)isia:icc Telcphone C:o

LSP KOR

3,195.821 3,643,6175 2.872.494 2,518.925 2,362.006 2.21 3,263 1 ,RS2.736

623.162 13.390

1.04 0 88 0 69 0.61 0 57 0 53 0.44 0.1.5 0.00

C4N PllL \EX L1'5.4

GBR PI-IL

JPN

20.385.41 2 4 91

0.59 0.57 0.47 0.26 9.1Y

GBR DEU

1.446.1 16 2,374,128 l.r)45.951 1.073.234

780.473

FRA ESP KOR

8.619.912 2.178

132



(Cur rency - LSD) All secu r i t i e s a re o rd ina ry unless otherwise s t a t ed

humber of 'IC. hares ur Lkscriptiun Cuuritry Tradinfi \larkel net

face value cndc currency value assets

Electronic Equipment & Instmments Mabuchi h k i r Cu . L t d Hitachi Ltd. Celestica Inc

30.300 123.000 25.901)

144,380 198,652

21.190 $53,300 242.120 40,050 21.610

7.188

30.717

125,760 3 2 . ~ 5 0

291,010

1,023.260

115.YO0 52,580

49.400 216.412

203.0 17 58,T50 70,711

76,600 35,590

ni2.n20

58.410

199.700

37.740

25 1.168 296,280 131,500

'tO.OO1 9.800

78,18Y

122.560

1.752.580 747.943

J PS I py J P X J PY C.\N CAI.) 346.717

0.42

0.09 0 i n

2,847,238 0.69

Food & Staples Retailing Krogr Lo J Fainsbur). I'LC

C!5A LjL? 2.747.551 GBK GBP 1.015.129

0.66 0.27

0.91

Food Products Nes:le SA Ln1:evt.r PLC Cadbur). Schweppes FLC: K r k Four15 Iric.. h General Mills lnc

5.322.31 2 4.372.943 1.31 1,853 1 273 991

1.31 1.05 0.56 0.31 0 2s

CliE CIH GRP GRF I:SD

GUK GRR l!<A .. l!SA

.. LSD 1101 11132

14.392.231 3.47

Hcdhh Care Equipmenr 6r Supplies Hospira lnc.

Health Care Providers & Services ClGhA Curp. ArnmscrurrcBergt.ri Curp Tenet Healthcare C O ~ J . M a y e Group Ltd

280.332 0 . 0 i

C!SA C!Sh l!SA A L S

CSD VSD USD AUD

3.2n7.6+1

1,050,338

2,271,577 1,539,302

0.79 0.55 0.37 0.25

8.148.838 1.96

Hotels. Restaurants & Leisure Compass Grllup PL.C 4,298,642 1 . O f GRR GRP

Household I lUVdbks Sony Gorp. Kocinklijke Fhilips Electl-onics UV

0 96 0 32

J P N U LD

JPY E U R

3.994.3~8 1,329.6YO

5.324.078 1.28

Industrial Conglomerates Sierncns AG Siiiiths (;roup FLC

L k C ' GBR

EUH GBF

3.610.333 3.562.864

0 R7 0 86

7.173.197 I 7 3

Insurance Am SA S L Capital Ltd., '-2 Sniss Reinsurance (3 AMP L.td AON Corp. ACb. l.ld

FRA 8\11: Ctif;

5,077,574 4372.175 4 3 7 . 0 3 3 4,004,436 1.91 n.064 l.j96,LI2

1 2 2 1 OS 1 0 5 0.97 0 46 0 39

11,315.494 5.14

liitemet Software & Services Check Point Soltu-are Technologies Ltd

Leisure Equi mcnt & Products ~ u l i ~ ~ i u t o J n ~o . Ltc~.

Machinery \:olvo AB, R

Media N'olters Kluwer NV DIRECTV Grnup l r lc \NC: ?A,

ISR 1,196,718

6.432.055

l,535,6Y7

4.807.886 4 592 340 3.670.767

0.28

1.55

0 37

J Fk

5\VE

1 PY

SEK

LC!K U5;D FL!R

116 I l l 0 88

13.070.993 3 15

0 35 0 06

Meldls & Mining Alcan Inc Yovelis Inc

C:AD CAD

1,471.1 10 148,540

1.719.650 0.41

Multi-line Relad Target C:oq'.

Office Elecironics Laird Group PLC

4,254,263 1.03 LSA USD

700.942 0.17 GUH GUP

133



(Currency - USD) A l l secu r i t i e s are ordinary unless otherwise s t a t ed

Kuinber 01 shares or Descriprion

face value Countr) lrading

code curreric!

170,510 311,130 206.363

188.120 253.810 43.740

209.500 113,100 2!4.870 94,792

143.1 917 15 1,890

19,737 63,098

20h.000

170

7.380

154.690

1.219.100 7.080

48.460

4-t.120.000 8,038,000

17.600.000 19.80S.r300 3.5 1 1.000 7.900,000 1.938.000 1 .T.59,000 ~,300.000 1.248.000 1.223.000 1.0$0.000 6.390.000

831'.001J 781.171717 835.c130 720.000 68o.000 730,000

5,300.000 560.000 570,000

3.350.000 450,000 $50.000

3.250.000 550,000 420,000 440,000

2.800.000 500,000 269.i39 2 50 ,m> 840,000 200,000

74.670

Oil 67 Gas h i 5pA Shell Transport 6z Trading C:L~ FLC RP PLC

Paper C Forest Products LPM-Kymmcnc. Curp. Srora Fnso OYJ. R Sol-ske Skogindustrier ASA. A

Pliarmaceuticals P r i m Inc Takeda Phannaceutical Co . Ltd lirisrul- hlycrs Squibb Cu Abbou Laburaturic.; GlaxrrSmi~hKline F1.C Shirc. Pharm;rceuucals Grvup PLC Sanoli-Aventis Mylan Laboratories Iiic.

Real Estaie %,ire Pacific Ltd.. A

Road & Rail h . c r Jdpan RiiiIwa) C o

Semicunduc~urs & Scmicunductur Equipment Sanisung Electronics Co , Ltd

Symopsys lnc

Wireless Telecommunication Services Vodalone Grnup FLC SK Telc.com Co . Ltd China Mobile (Hong Kong) I.rd.. ADR

Sultwdre

TOTAL SHARES

BONDS Government Bonds Kingdom of Yoi-way. h 75%. 01/15/07 Goverrimtw uf t i eu %ealand. 7 00%. 07/17/09 Republic of Poland. 6 00%. U5/24/119 Kinpdorn of Sneden. 8 00%. CW1 5/07 Yew South Wales Ti-easur). Curp.. 8 00%. 03/01/08 Rcpuhlic r r f Folsnd, 6 27%. 10/24/1T Governmen1 01 1-rance, 3 00%, 10/25/09 Federdl Republic of Cicrinan). 5 01YX. 07/04/11 Repuhlic of Poland. 8 50%. 05/12/0i t d c r a l Republic id Gcrr Russian Federaiitoii. Rcg (;orerniiient nf Yetherhi Kingdom UT Lkrimark, 5.008. 11/15/> 3 Ihited Mexican States. 7 io%:.. 03/08/10 Kingdom ol Bclgiuin. 7.50%, 07/29/08 Guwrimcnt uf Iraly. 5 00?0, 05/01/@8 Repuhhc or Philippines, 9 125%. 02/22/10 Go~rrnment of France. 9 00%. 04/25/12 Guvernment ul Spain. 4.80%. 10/31/06 Kingdom nf Sweden. 5.00% 0!/28/0Y Goveniment ol Spain. 6 00% 01/31/08 I:rc.rich Trcasup Note. 4 75?$. 0711 2/07 Kingdom of Deninark. h W X . : 1/:5/09 Gcr\c.rrirnc.nt v l liertwrla:ids. 5 008. t77/15/12 Republic of I!kraine, 7 65%. 06/11/i3 Kingdom nl Denmark. 7 OP&, 11/15/07 Kcpublic uf PtiiIippiri~s. 9.00%. 02/15/1 3 Go\t.rnmcni uf Span. 5 1 SX. @7/30/dY (;o\-eriimcnt of Spain. 4.25%. 10/31/07 Kingdom of Derirnark. 6.00%. 11/1 511 1 C;ovcrnnienr of K c w Zealand. 8 00%. 11/15/06 Go\-ei-iimc.nt 01 Italy, 7.75% 11/01/06 Russian Federation. 8.25% 03/31/10 Republic of Poland. 8 50?~, 11/12/06 Qucensland Treasur! Cor!>.. 6 00% 07/14/09 Republic 01 C'krainc., :O.OO?o. 03/15/07'

1-1.4 GBR GER

I.lh Flli YOR

L!SA JFN L!jA L!SA GHR GER FRA L5"s

HKC;

J P N

KOR

L15.4

GBR KOK CHN

NClR NZL POL SWE .\us FOL F RA DEL' POL DEI! RL5 h LLI DYK MLA REI 1T.A P i l l . F IU ESP S\VL ESP FRA DP. K NLD UKR DhK FHL ESP ESP DKK NZL IT11 KCiS POL AC15 UKR

EIJR GHP GBF

EUR LUK NOK

C!SD JW V>D I S D GRP GBF FUR I;SD

HKD

IPY

KRW

I S D

GBF KRW LSD

KOK l izn PLh SEK AUL) FLK

EI;R PLK FLR LSD ELK DKK ELR LCK EI;R LC:H ELR EllR 5EK FI!R EUR DKK EUR USD DKK LSD EUR FL!R DKK hZU EI!R C'SI) FLK '4C!L) EIjR

u.:n

4.396.598 3 025,130 2.1 47.850

1 06 0 73 0.52

9.769.578 2 31

3,607,843 3.246.139

721,192

7.575.174

5.778.0 10 5.61 2,144 5.367.452 4,645.75h 3.465.536 1.6h5.264 1.621,565 1.21 3.996

29,369,723

1,822.516

874,233

0.87 0.78 0 18

1.83

1 39 135 1 30 1 1 2 0 84 0 40 0 39 0.29

7.08

0 44

0 21

3,324,137 0.85

2,578,682

2,970.165 1,245,587

900.8T2

0.62

0.71 0.30 0.22

5.1 16.624 1.23

255,125,568

7.189.703 3,820,459 5 3 2 1,248 2,856.620 2.846.683 2,667,194 2.4Y 7.929 2.4174.0V 1 1.699.184 1,628,236 1,368,378 1.345.314 1.197.930 1.180,800 1.0Y1,5T6 1,0Hh.829

974,651 935,215 919.748 744.383 742,612 726.803 62.5,l 18 619.230 607.750 588.486 583.743 562.170 558,778 543.380 356.735 350.081 273.395 264.256 156.463 Y6,590

61.50

1.73 1.40 1.33 0.69 0.69 0.64 0.60 0.58 0.41 0.39 0.33 0.32 0.29 0.28 0.26 17.2h 0.24 0 23 1722 0.18 0.18

0 19 0.15 0.15 0.14 0.14 0.14 0 1.3 0 13 0 09 u 08 0 07 0 06 0 04 0,02

0.18

53.625.971 12.92

134

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Ba lanced Fund -


(Cur rency - U S D ) A l l secu r i t i e s a r e o r d i n a r y un le s s o the rwise s t a t ed

Kmnher of shares ur Drscripiiun

face value cuun::~ Trading

code currenq

x of Market nei

\slue asscis

3(7,500.01)17 1,450.000 1 1,i00.000

770.000 228.000

l.ilOU.000

Securities Maturing Within One Year Kingdom or Sneden. 3 70%, 0+/20/06 New South Wales Treasur). Corp , 6.50%. 05/01/06 honvegian Treasury Bill, 0.00'6. 09/21/05 Uuuni Puliennah Del Tesoru. 4 755;., 03/15/06 Gwernmenr of Spain. 10 17%. 01/31/06 Kingdom of Denmark. 5 00%. 08/15/05

SM'F SFK A M ALD NOR NOK l-L% ELR ESP EYR DLK DKK

3.962904 1,882,008 1.782.847

948.911 288.555 162.90Y

11.500.000.000 7.300.000,000

9 .000.000 18.700.000 6.~700.00(3

126.300.000 4,100.000.000

19,130,223 $ti .000.000 52,240,000 4.1 110.000

25,800,000 2>l00.000

5.000.000.1700 300.000

2.4H1 .000.000 260.000 144,000

3,300.(70@

TOTAL BONDS

TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFlCIAl. S IOCK EXCHANGE I.ISTING

TR.A.h'SFERABI.F SECURITIES DEAI T IN

BONDS Government Bonds Korea .Treasur). Bond. b YO%, 01/16/07 Korm .I-reasur). Bund. 3 i 5 6 , 09/10/07

Government of hlalapia. 4.305%. UU27/0Y Go\,emincnl of Canad'i. 3 27%. 12/01/06 Republic of Slovakia. 4 80%, 04/14/09 Korea Treasury Bond. 4.50%. @9/09/08 Kingdom of Sweden. 3.50'b. 12/01/15

Thailand hvemmcnt Bond. 8.00'L. 12/08/06 Go\errimm of M;il;iyskd. 6.+5%. 07/01/08 Republic of Slovakia. 5.308, 05/12/19 Rtpubllc ol PoI;IIKI. 5.75%, 09/23/22 Indonesia Recapid Bond. 14 00%. 06/17/09 Rrpublic or L!kraine, 7.6590, 06/11/13 Indonesia Recapid Bond. 14 275%. 12/15/1 3 Republic ol Ukraine. 6.875%. 03/04/11 Go\ernment of Canada. 6.00%. Oti/01/1 1 Republic of Slovakia. 5.90%. 02/11/14

OL ALiOTHER REGULATED MARKET

Republic or Singapore. 4 0@%. 03/01/07

hpubl l r or Slovakia. 0.00%, O l / l . t / O i

9.029.034

62.655.@175

31 7.7811.773

0 96 0 45 0 4 3 0 23 0 07 0 04

2 18

15 10

7h 60

KOR KRW KOR KKW SGP SGD hlY5 MYR CAN CAD ... ';<< SKK KOR KRW 5\VE SEK 55s SKK TH:I THB w j M Y K 555 SKK POL PLN 1 DN IDR LKK CISD IDN IDR

C A N CAD 555 SKK

LKR um

11.605.373 6.937.188 5.518.591 5.100.277 4,929,443 4,283,143 4,016,640 2.930.259 2.61 3,278 1.352.827 1.178.7SO

972,233 696.583 565.446 331.050 295.635 274,463 133.512 117.0.34

2.80 1.67 133 1.23 1 1 9 1.03 0 Y7 0 71 0 63 0.32 0 28 0.23 17 17 0 14 0 OH 0 07 0.07 0.03 0 03

53.851.725 12 98

155 .i00.000 3,200 000 3,500 000

35,000 000 21,800.(7(7(7 1;,000,000 5.H3i.000

Securities Maturing Within One Year Thailand Governrrieni Bond. 8.50%. 10/14/05 Gowrniiient of Canada. 3.00%. i76/01/06 Republic of Singapore. 1.r71)R. 02/@1/06 Bank ol Thailand Bond. 0.00%. 03/12/06 Bank ol Thailand Bond. 0.00%. 02/23/06 Rank ol Thailand. 0 00%. 06/01/06 Thailand T r t d s u p Bill 0.004(.. 03/09/06

.I 11'4 CAN 5GP THA It-1.4 THII THA

I l iB CAD SGD THB THH THB -1-t I5

3,829,022 2.619.345 2,064.96S

828.729 519.032 501.022 138.539

0.92 0.63 0.50 0.20 0.13 0.10 0.03

TOTAL BONDS .lOTAL TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULAlED MAHKEI.

TOTAL INVESTMENTS

10.40l.554 2 51

64.253279

64,153,279

382 033.852

15.49

1549

92.09

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Bond Fund -


(Cur rency - USD) A l l secu r i t i e s a re o r d i n a r y unless o the rwise s t a t ed

Kumber ul shares or Description

face value

B ur count^ Trading Markct net

C U d C currency value assets

4; 6.18L1.00U 20!).708.000 140,500.000 S2.460.000 62,254.000 52,890.000 41 ,Ti)17,000 25,500.000 32.5 i 0.000 26.591.000 1.3.940,@@0

130.500,000 11.300.000 10.600.000 36.450.003 68.360.000 49.75L.330

6.980.000 8.300.000

10.235.000 4,850,000 5.770.000 8.94U,000 9.70i7.000 5,048,000

42,870.000 4.100.000 4,356,000 4.700.000

25.260.000 5.023.594 3.200.DOO

29.100.000 2.800.L~O0

100.900.1700 2.563 . O W L.660.000 2,340.000 L.200.000 2,D00,000

2.~00.000.000 1,820.000 1,780.000 1,295.000

10,910.000 627,000 830.1100 800,000 720,0(70

5.200.000 700,000 672.030

S.700,00@ 2.780.000

100.001)

L56,920.000 21 5.380.00O

1 6,586,0011 4,000,000

1 R-\NSF.ER.\BLE SECURITIES ADMITTED TO hli OFFlClAl. STOCK FSCHAh BONDS Government Bonds

Republic ul Pularid. 6 25%. 10/L4/15 Republic of Austria. 4 hS%. 01/15/18 Republic ol Argen:ina. FUN. 3 01%. 08/03/12 Repuhlic of \:enezuela. FRY, 3.179% 04/20/11 + Gowmmeiit of Yew Zealand, 6 50%. 04/15/13 Republic r r l L!kraine, FRli, 5 36%. 08/05/09 * Queensland Irea5ur) Curp . 6 00%. 10/14/15 Go\cninieiii of Ycu Zealand. 7 00%. 07/15/09 Republic 01 Philippines. 9 125cX.. O2R2/10 Kirigdorn of Sweden. 8.0070. c?8/15/$7 Go\crnme!it or France. 4 25%. 04/25/19 Republic ul Ireland, 3.25% i0/18/07

Kingdom of h e d e n . 5 50'h. 10/178/12 Kingdom uf Llcnrnark. 5.00%. 11/15/13 Goremmcnl or Finland. 7.00%. 04/25/09 R e p u l h or L'krainc 7 65%. 06/11/13 l i e w South M:ales Treasur) Chrp.. 8.00Y. 03/01/08 Hellenic Republic, 6 50%. 10/22/lY Go\einment of France, 4.170% 04/25/13 Qucensland .Treasury Corp., 6 00%. 07/14/09 C;o\-emnieiit of hew Zealand. 8.00%. 11/15/06 Gowmmeni o l heiherlands, 5.75%. 0211 7/07 Kingdom or Sweden. 6 50%, 05/05/08 Lnited Mexican States. 7 50%. 03/08/10 Go\emrnenr of Neihcrlands. 3.73%. 07/15/09 Republic of Philippines. 9 00%. D2/15/13 Kingdom or Denmark. 6.001. 11/17/11 Republic of Brazil. FRY, 3 125%. 04/15/12 + Republic 01 Irelanrl. 4.605. 04/18/16 Kingdom of Sweden. 5.258. 03/15/11 Guvcrnmeni ul Neiherlands. 5.00%, 07/15/12 Repuhlic of Slovakia. 4.95% 03/05/08 Federal Republic ol German);. 6.00% 07/04/07 Govcrrirricril of Spairi. 4 80%. 1@/31/06 Guvcrrirnvni c i l Spairi. 5 00%. 07/30112 Hellenic Republic. 6 00%. 05/19/10 Republic ul Ireland, 5.00%, 04/18/13 Kore3 Trrasuv h i d , 5 77%. 10/09/07 Gowmment 01 France, 5.00%. 04/25/12 Federal Republic or German), 3.75'X. 01/04/09 Kingdum 01 Belgium. 7 506. 07/29/08 Kirigclurri cd S u e r k n , X 0 % . 01/28/09 l!nitcd Kingdirm. 7 50% 12/(77/176 Gowrnment 01 Lrance, 4. i5%, 10/25/12 IkllcriiC hFpUbllC, $.60%. 05/20/1 3 (;o\wnment of Nethei-lands. 4.25%. 07/15/13 Kingdom 01 LJcnrnark, 4.00%. OWYO8 Grr\crnnieni of Spain, 4 2i16, 19/31/07 Republic ol Cikrainc, i0.006. 03/15/07 Kingdom of Denmark. T.OO%. 1 1/15/07 Kingrlum or tkrirnark. 6.00%. 11/17/09 Kingdom of Belgium. 4.75%. 09/28/06

Kcpublic ell P ~ I L I , 8.50%. 05/12/07

Securities Maturing Within One Ycdr Kirigrhrri of S \ \ d t . n . 3 50%. 04/20/06 Nonvegian Treamiy Rill. 0 008 . 09/21/05 lien- South Wales Ire,uul)- Curp.. 6 50%. 05/01/06 Pro\-ince c d .\Ibcri;i. 7.25% 10/28/05

TOTAL BONDS

TOTAL TRANSFEMBLE SECUKlTlES ADMITTED TO AN OFFlCIAl. STOCK EXCHANGE LISTING

,GF I.ISTISG

NOR POL POL AI:T AKG YEN hZL IJKR AL!S liZL PI IL SWE FIL\ 1 RL POI. 5WE I ) S K FIX 1:KR IILS GRC FRA AZCS N ZL Y1.D SWE MEX Y1.D PHL DliK RR4 IKI.

>\?:E V1.D 555

DEU ESF ESP GRCI 1RI. KOR I: R4 DEL! KFI.

SLVE GRK FRA GRC h LL) DSK

I:KR L)hK DliK REI.

t w

S\VE \OR AL'S CAN

hOK FLK PLP. EIJR

I!5D YZD I!SD AZtlL) YZD EC:R 5EK FVR LC!K PLY SEK DKK EI!R L!SD A1JD E V R El!R ALL) SZD EL!R SFK EUR FUR LSD DKK LSD LUK SEK t:LiR SKK CUR EIJR FUR EIJR E1:R KRW E L K E1JR l.UK SEK GRP FCR ELR ELK DKK EC!R EI:R L)KK DKK FUR

uju

5EK KOK AUD C.4D

67,819.827 6i.786.928 64,268.291 58,271,077 55.918.765

30,515,898 27,540,000 25,991.810 19,255,016 18.8T0.319 18,822.966 15,100.858 13,447.141 11 685.898 10,341, 168 9,327,061 9,263.579 YJ71.500 8,313,049 7.736.409 7.707.193 6.Y93,878 6.920.664 6.467,756 6.165.350 5.832.869

4.988.345 4,902,066 4.836.792 4.380,153 4,262,841 3.852,986 3.376.086 3.343,886 3.336.836 3,220,420 3.069.805 2,770,041 2,509.83 2.503,075 2.260.511 1,809,976 1.532.306 1,176.306 1.129.341 1,068,280

950.603 892,050 888.965

851.041 518.754 125.025

706.972.214

- t R , m . i m >

~ 5 4 9 , a i ~

869.309

3.53 3.42 3.34 3.03 2.91 2.53 1.59 1.43 1.35 1 00 0 98 0.98 0.79 0.70 0 61 0.54 (1 48 0 48 0 38 0 43 0.40 0.39 0.36 0.36 0.34 0.32 17.30 0.29 0.26 0 25 0 25 u 23 0.22 0.20 0 18 0 17 0 17 0 17 0 16 0 I t 0.13 0.13 0.12 0,179 0 08 0 06 0 06 0 06 0.05 0 05 0 05 0 05 0.04 0.03 0 01

36 77

33.38l.Y46 32.819.627 12.746.901 3.310.750

1 74 1.71 0.66 0.::

82,259,224

T89 231 438

789 231.438

4.28

41.05

41.07

136



( C u r r e n c y - U S D ) A l l secu r i t i c s a r c o rd ina ry unless otherwise s t a t ed

humbei- ul shares cor Descripiim

lace value Counir) Trading

code currcnc)

B n r Market lie1

value it5W15

69,800 000,000 67.500.000.000

411.292.691 96,610 000

50.320,000.000 1 ,476.300.000

. , . . . . . . . 905.L00.000 8175 :700:000

29.900,000.000 28,729,000.000

. . . . . . . . . .

8,1017,000 $6.1750.000

104.944.000.00C 3013,000,000

h.050.000 87.750,000.000 92,300.000.0(70

10.0(1(1.000 19,350,000 8,000,000

50,800.000.000 3,500,000 5.700.000 4.600.000

113.500.1700 94.000.000

4.040.000 3,200,000

12.800,000 2.s00.000.000

60.000,000 2,270,000

24.750.000.000 90.000.1700

2 ,500.000 1.693.01717

1 7.100,000.000 49.000.0017 23,000,000

368.000 6.000.000

100.000

TRANSFEIWB1.F SECl!RITIES DEALT IN Oh AhC)TI IER FXGCIL;\lt;D MAKKEI BONDS Government Bonds Kurca .Irt.asur) Bond, 3.7590, 09/10/07

y Bond. 4.77%.703/03/07 weden. 3.50%. .2/01/15 iigapore. 4.008. 03/01/07

Kcrrea Treasury Hond, 4 75%, 03/12/08 Rcpubllc of Sluvakia. 0.00'?0, 0111 4/07 Indonesia Reca mal Bond 14 25% 06/15/13 Gu\t.rnrncrii o/\ila~aysia. i . 4 < % . ~;/OI/OR Indonesia Reca ita1 Bond 14 275% 12/15/13 ~o\emmcrri J '\ialaya. .4 305%. 02/27/09 Repltblic of Slovakia. 4.80%. 04/14/c)9

Korea Ireasury Bund, 6 \)OX, 01/16/07 Korea Treasury Rrmd. 4 517%. 09/09/08 Kepblic ul Singapurc. 2 625%. 10/01/07 Korea Treasury Rotid, 3 517%. 09/03/06 Govemineni of Hnlaysia. 4 032%. 09/15/09 Kepblic ol Peru, kKN, 4 50% 03/0i/17 + 1 hailand Govcrnmenl Bond. 8.00%. 12/08/06 Guverrimtm ol C;rriada. 3.25%. 12/01/06 Federal Republic or Gemany, 6 25%, 01/01/24 Governmen1 o l Malavsia. 3 644%. 08/25/10 Indonesia Recapid h n d . 14 00%. 06/1 5/09 RepLtblic uf jlovakia. 4 90%. 02/11/14 Governrnenl of krance, 6 00%. 10/25/25 Go\wiiiiwnt of Indonesia. 11 00%. 10/1i/l4 Go\emnrcni or Indonrsia. 10 00%. 07/15/17 Queenslancl TreasuF COT . 6 0 0 8 , 08/14/13 RepJblic of Poland. 5.758. 09/23/22 N w Lcabntl Governmcril. 6.008, 04/15/15 Indonesia Recapital Bond. 1.3 15%. 03/15/10 C:niied 3kxicari S ~ c s 14SA. 7 50%. 03/08/10 New- South Wales Treasuq- Corp.. b.00'X. 17i/0:/12 Gincrnmerii uf C a r d . 5,2596, 06/01/12 Republic of Slovakia. 5.0O'X. 01/22/13 Republic of Slovakia, 7.50%. 03/13/12 Go\emmeni o l Canada. 5.758, 09/01/06 Republic or L!kraine. 6.877%. 03/04/11 Lowrnment of Malaysia, 3.1358, 12/17/07 Republic of Korea, 5,00%, 03/26/13 Republic of Slovakia. H.iWA, 08/17/10 Republic nf l!kraine. 6 R i 5 ' X . . 03/0$/1 1 Government of Indonesia, 9.50%. 06/15/15 Thniland Go\ernmcni Bond. 7.60%. 07/07/07 Proxince 01 Rritish Columbia. 5 25%. 12/01/06 Gnveminenr or Canada. 6.~70%. 06/01/08 1nrluncsi;r Guwriiment. 10 75%. 05/15/16 Thailand Go\wnincnr Bond. 4.1 25%, 02/12/08 Republic of Slo\-akia, 4.90'X. 02/05/10 Republlc of Philippmes. FRY, 2.9375%. 86/01/08 Thailand (;ovemiiicni Bond. 8.50'fn. 12/08/08 Republic of L'kraiiie, 7.6iS, 06/11/1.3

KepJbilc ~ I u \ . M ~ I B . 5 30%;. 05/12/19

KOR KRW K O R K R W S\VE 5EK

KOR KRW 555 SKK ID3 IDR MY5 MYR IDh IDR hlYS !dY R ssj SKK 555 SKK

KOK K RW

SGP SGD

DEI! ELR M Y S MY R IDN IDR SSS S K K FRA FLR IDS IDR IDk 1DR .AI!< AI!D .... POL PLli k71. YZD IDN IDR M EX EUR

I.'KR I!SD \iys MYR KOR KRW S55 SKK L'KR l!SD IDli IDR I HA THB

CAh CAD CAk CAD IDh IL)R THA THR sss SKK

THA THB LKR USD

PI IL usu

66.330.919 66,076.074 62.969.865 59,239.008 49.558.804 44.252.525 35,0813.862 34,126.250 33,133374 32,742.690 30.697.553 30,361.568 30,173.971 27,Y45.041 26.766.501 21.Y84.757 21.918.658 17.027.010 15.485.130 14.377.541 13:388'106 12,217,853 11,868,022 10,958,591 9,856,277 8,907,616 8,757,147 7.973.204 6;41$:51+ 5.679.928 5,612,358 4.979.279 4,500,651 4,125.4.3 1 4.006,2130 3.742,162 3.410.702 3.378.000 3,375,733 2.488.079 2,378,326 2.375.156

2.278.160 2,109.58 1 1.498.162 1,491.821 1.212.194

789,768 348.875 169,089 110,350

2,287,853

3 45 3 44 3 28 3 08 2 58 2 30 1 82 1 7 7 1 72 1 70 1 60 1 58 1 57 1 4 5 1 39 1 1 4 1 1 4 0 89 0 81 0 75 0.70 0 64 0.62 17 57 0 i l 0 46 0.46 0 f l 0.33 0.30 0 29 0 26 0 23 0 21 0 21 0 19 0 18 0.18 0 18 0.13 0 12 0.12 0.12 0.12 0.1 1 . .. 0.08 0.08 0.06 0.04 0.02 0.01 0.01

872,950,480 45.41

137


SCHEDULE OF 1NVESTMENTS AS OF JUNE 30, 2005 (continued)

(Cur rency - USD) A l l secu r i t i e s a re o rd ina ry unless o the rwise s ta ted

hurnbcr u l shares or Dexriptiuii

face \due Cuuntr\. Trading

code currency

41.655.000 32 362 .000

153.100,000 915.955.000

1 1 ,765,0170 lS.100.000

395.900.000 .370,000.000

9,750.000 30~7,000,1700 286,365,000

b.520.000.000 7,730.0~~0

250.000.003 233,000.000 235,150.000 S2,000.000

200,000,0017 165.840.000 25,400.000

1$0.000.000 100.~7~70.L700

3.280.000 $1 .7?0.171717 -t5.000,000 S4.000.000

1 .000.000

Securilies Maturing Within One Year (;overiiinent t7f C:anada. 3 00% 06/01/06 Pruvincc ul Albcrtd. 7 508 , 12/01/05 hw..t.gian lrca>urv Hill. 0.00%. 12/21/05 Thdiland Go\,ernrn&ir R o n d . 8.50%. 10/14/07 Repuhhc o l Fhilippines. 0.00% 10/03/05 GwCi-nmc.iit of hc\* Zraland. 6.50%. 02/15/06 Rnnk of Thaildnd Rnnd. 0.00%. 02/23/06 Bank 01 Thailand Bond, 0 00%. 05/25/06

Bank of Thailand Bonk 0.00%. 09/01/05 'Thallanci Treasury Rill. 0 00%. 03/09/06 Korea Treasuv Bond. S.50%, 03/05/06 Canada Trcasur). Bill. D.OOLX. 07/28/05 h r l k d I h ; ~ ~ l a d b u n d 0 00%, 05/18/06 Bank of Thailand Bond. & W k , (75/!2/06 Dank Ol Thailand Rurirl. 0.00%. 04/07/06 Sweden Treasury Ri l l . 0.00%. : Z/.2:/05 Bank ol Thailand Bond. 0.00'X, 06/08/06 Udnk d ~lhailanrl Buncl. 0.00%. 02/09/06 NOM-c ian Ireawr). Bill. 0 006. 03/15/06 Rank ,'i Th dl I and Rond. 0 00'fb. 01/05/06 Bank of Thailand. 0 017'h. 06/01/06 Ncw Zraland .Irfiiaur, UiII. 0 00%. 0 6 R X E Rank of Thailand Bond. 17 00%. 04/17/06 Hank oC .Ihailand U L I ~ L ~ , 0 00%. 10/13/05 Bank o l Thalland Bnnd. 0 00'b. 10/0h/05 Gi.~wrrirritmI (II ( h s t l a . 3 00%. 12/01/0T

E , ,in,rtla I rtxsur) Hill. 0.00%. 07/14/05

C A N CAN NOR THA PHL NLL THA .11-1.4 C.4 N TH.4 THA KOK CAk

THA TH.4 S\VF THA I 1 1.4 h0K THA THII h LL THA .I I IA THA CAh

rH.4

CAD CAD hc?K

I S D IiZD THR THR CAD THB

I HR KRW CAD 1-1 IU THE I 1 IU SEK THB I H B KOK THR THR NZD THB .THE TH R C.4 13

'rim

34.096.51 0 26,9.33.817 23,210.391 22,525,445 11,676,949 9.820.596 9.415 :Y 17 8.752.306 7,951.212 7.233.797 6.801.452 6.334.559 6.31 4.501 5,916.830 5,753,736 5,573.003 5,333.816 4.726.021 3.954.055 .3.823.53.3 3,343.620 2.364.239 2,15 1 .Y32 1.225.986 1 .U82,612 1.058.554

817.631)

1.77 1 40 1 2 1 1.1: 0.61 0 51 0 -19 0.46 0.41 0 38 0.35 0 33 0.33 0.31 0.30 0.29 0.28 0.25 0.21 0 20 0 17 0.12 0.11 0.06 0.06 0 0 5 0.04

TOTAL BONDS

TOTAL TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGIXATED MARKET

228.1 83.628 11.87

1 .1O1.134.108 57.28

1,101,134,108 57.28

TOTAI. INVESTMENTS

t Floating Rates are indicated as at J ~ n e 30. 2005

1,890,365,536 98.33

138

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Bond (Euro) Fund -


(Cur rency - FUR) Al l secu r i t i e s a r e ordinary unless o the rwise s t a t ed

Lumber of share.: or Lkscriplion

r3ce \ditit' Counti? Trading

cudr <urrrric>

34,000

2,170.000 1.820.000 7.430.000 1.430.000 L.155.000 1.1 50,000 1.2217,000 1060,000 1.050.000 1.760.000

850,000 898.000 860,000 830,000 600,000 850,000

2,720.000 949.000 680.000 575.000 352.000

2.910.000 230.000 247.000 200,000 190.000 160,541

1.160.000 51)0,000 IOO.OOO 80.000

680,000 70,000 60,000 60,000 40.000 58,000 73.295 50,000 50.000 50,000 40,000 38.000

130,000 20,000

370,000 310.000 2T0,000 250.000 190,030 170,000 40,000

BONDS Corporate Bonds Buoiii Poliennali Del Tcsoro. 3.50%. 01/17/08

Gowrnment Bonds RfpJblic or Austrla. 4,65%, 01/15/18 Government of France, 4 O W . 04/25/13 Re Jblic 01 Poland. 6.008. 05/24/d9

Queensland Treasur). Gorp.. 6 00'X. 19/14/17 Gowmmenl ol Spain. 5.50%. 07/30/17 Federal Republic of Gerinany. 3.75% 07/04/13 Government of hetherlands. 4 259;. 07/15/13 Government of France. 4 25%. 04/25/19 Gowrnmeni of hem ilealand. 6 50%. 04/l 3/13 Government of Finland 5 375%. 07/04/13 Goveriiinent of hietherlands. 5 75%. 02/1 5/OT (;ovemnieiit of ltalv. 1.50%. 03/01/07 Gu\errimerit uf IirJand. 2 . 7 5 ~ 0 , Oi/O+/O6 Hellenic Republic. 5.9076, 10/22/22 Republic of I!kr3ine, FRh, 5.3b'h. 0WO5/(79 + Republic of Poland, 6 15%. 10/24/15 Kcpublic of Argentina. PKS, 3.01%. 08/03/12

Republic of Venezuela.

Kingdom of Sweden. 5.508. 10/08/12 Go\ernnicni of Iial). 7.0Vk. 02/01/12 Russian Federation, Reg S. 5 OO%, U3/31/07 Republic o l Ireland. 4 60%. 04/18/16 Krpublic of Philippines, 9 125%. 02/22/10 Republic of Ilkraine. 10.00%. 03/17/07 Kingdom ol Korwdy. 6 75%. 01/15/0i Republic 01 Polaiid. 8 5 0 8 , 05/12/07 Lhi.erl Mexican Srates. 7 50%, 03/08/10 Repuhhc or Ireland. 5 00%. 03/18/13 Kingdom of Sweden. 6 50% 03/05/08 Governmrrii or 1,irilarid. 5 00%. 04R5/09 Govemmcnt of Spain. 5.00%, 07/30/12 Uni:ed hlexicaii States. 5.375%, 06/10/13 Russian Fedenlion, 12.75%. 06/2+/28 Fedcral Repuhlic of Gerinany. 3 0 0 8 , 04/11/17R Republic or Rrml . FRK. 3.1 25%, OW1 5/12 i' Republic o l Ausiria. 5 00')1;. 07/17/12 H r l l ~ ~ i i c Rrpublii. 6.30%. 01/29/09 Hellenic Republic. 4 608. 05/20/13 Republic of South A h a . 5.27%. Oi/lh/l3 Governmenl u l Spain, 6.0096, 01/31/08 Repul)lic or Poland. 8 70%. 1111 2/06 Republic 01 Bulgana, T.50&, 01/15/13

He;enlc~Republlc. 6 50%. 1 0R2/19

.0Y% 04/20/1l +

Securities Maturin Within One Year

Fedcral Republic of Germany. 2 00%. 03/10/06 Government of Netherland.:. 4.00%. 07/15/05

Kepubh d Poruy,;J. 5.25%, 10/14/05

Republic Or I l a l ) . 3.75%, 07/01/05 Fedtral Republic of Germany. 2 50'k. 09/16/05 Kinedoin of Rclpiuin. 3 75% 09/28/05 . . D . . . , .. .. .. Government of Spain, 4.95%. 0T/30/05

TOTAL BONDS

TOTAI. TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAI. STOCK EXCHANGE LISI-lNG

ITA

AUT FRA POL GRC A I 3 t 5 P DEI.' N LL) FRA 17.1. FIN N LD ITA k1N GRC LKR POL AKG AI!S \ E N FRA 5WE ITA RUS 1RL PI IL UKR KOR POL M EX IRI.

SWE FIN ESP hlES RL'S DEI! BRA AUT G KC GRC 7A F ESP POI. BGR

PRl- LIEU Y LD 11.4 DEL HLL ESP

EL!R

EUR EL!R PLY FUR ALD EL!K E1!R LC!K EUR h7n EUR EI!R EI!R EUK EUR I:SD PLN CiSU X D USD FUR SEK EIJR

ELIR EC!K EUR NOK PLN EUR FUR SEK EUR EUR EL!R CSD EI!R USD EI!R L U K EUR EL!R EUR PLY EUR

usu

EUR EUR EUR LC!K ECR LC:R EI.'R

35,112 0 08

2,461,214 1 ,956.99 5 1,926,327 1,885,169 1.323.Y 13 1.400.470 1.290.1 50 1,156,725 1,149,483 1,062.143

996,837 950.883 894.787 836.433 762.390 758.681 758,381 703,487 439,649 437,192 374,961

259,601 228.398 226,249 212.563 171,627 156.225 132,480 117.575 91.572 80,822 76.787 68.244 65,910 60.083 59,353 58.322 56.794 56.595 55.180 4.3.960 41.646 33.799 25.522

363,812

5 41 4 3-3 3 26 4 17 3 15 3 117 2 85 2 56 2 3 2.35 2 2? 2.10 1 98 185 169 1 68 1.68 1 5 6 0.97 0.97 0.83 0 80 0.57 0.71 0.50 (7.47

0.35 0.29 0.26 0.20 0 18 0.17 0.15 0.15 0.13 0.13 0.13 0.13 (1 13 0 12 0.10 0.09 0.07 0 06

0.38

26.370.389

373 182 309.916 270.149 250,000 190.152 171,042 40.072

1,604,513

28.010 014

28 010 014

58 34

0 82 0 69 0 60 0 55 0 42 0 38 0 179

3 55

61 97

61 97

139

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Bond (Euro) Fund -


(Currency - E U R ) A l l securi t ies a re ordinary unless otherwise s t a t e d

humbe:- 01 shares tor Description

Lace viliue

5s ot Market net

v;rluc ilsseb

76,000.000 1.030,000 2.0L70.171717 1.Y80.DOO

10.h017.000.L7170 Y00.Di)i) 650.000 6S0.000

22,500,17170 630.000 600.000

6.400,000.000 663,000 i30.000

1,600,000 330.000

2.S00.000.000 350,000

1.637.705 h.UOi).UOO

200.17OL7 180,000 1170,01717 1 27.823

85 000.000 L.100.000

500 000,D30 20.000.1700

53.000 1.2uu.000

800.000 220.000

. . BONDS Govcrnment Bonds Republic u l Slmakia. 5 00% 01/22/13 Kirigdutn c d Belgium 5 50%. 09/28/17 New Zealand (;overnmeiit. 6 017'k. 174/15/15 Guvcrnmcnt ul h e - ikalaiirl. 6 00%. 11/15/11 Indonesia Recapital Bond. 14.275% 12/15/13 Republic ul Ireland. 4 50% 04/18/20 Federal Republic rrf Gerinany, h 2%. 01/04/24 Gu\,erriment i d I : rmw. 6 00%. 10/2325 Republic of Slovakia. 4.YOLb, 02/11/14 Rqmblic o f Ausiria. i 875%. 07/1 $/Oh Republic uI hi- tuqal , 3 00%. 07/17/06 Gcnrrrirnerit of Indorirsid. 10 00%, 07/15/17 Go\-eriiinent ot Canada. 6.00%, 06/01/08 h e n South \.Vale> .Irt.asur) Curp , 6.00%, 05/01/12 Republic ol Poland. 5,75%. 09/23/22 C;o\crninent of Spain, 3 00'b. 177/30/07 Indonesia Recapi~al Bond. 14 25%. OhllYl.3 Q u e c r i h i d Treasury Curp.. 6.00%, 06/14/1 1 Kingdom or Snedcn. 3.50%. 12/~7!/!5 Republic ut 5lo\-akia, 7.50%. 03/13/12 Repuldic of Lkraine, 6.875%. 03/04/11 Queens1;~rirl .I reasur) Cui-p.. 6 008, 08/14/13 (;ovcrninent of Canada. 5 25%. 06/01/12 Rosni.i k Herzego\ina. 0 00%. 1 2/11/17 Korea Ti-easur\. Bond. 4 511%. 0Y/UY/08 Republic or Slb\akia. 0 00%, 01/14/07 Indonesia Recapital Bund. 14 00%, 06/15/09 Korea Treasury Bnnd. 4 50%. 09/03/06

Securities Maturing Within One Year I! 5. Trcasu?; Note. 2.00%. 05/15/06 Thailaiid Government Bond. 8.506. !0/14/05

Thailand Treasury Bill. 0.007i. 03/09/176 ~ a n k or Thailand R W ~ , o.oox. 02/23/06

TOTAL BONDS

. 101AI . TKANSFEKAl3I.E SECURITIES DEALT IN ON ANOTHER REGULATED MARKET

sss REI NZL NZ1. IDN IKL

DEI:

LIL BlH KOR sss IUK KOR

5KK LUR LZD hZLl IDR ELR ELR CC'K 5KK ELR ELR IDK C.4D AULl PLK EUR IDR

AU L1 SFK SKK u n AUL? CAD F.I: R KRW SKK IDR

KRW

2.217.Oih

1.173.734 1,154.4Y6 1,043.884 1.012.8@6

887.900 875.160 659.471 653.696 605,058 501.831 484.877 476,365 438.622 338.471 242.918 228,474 207,221 1E.407 174.484 118,610 74.1 19 69.024 68.820 55.249 46.731

1,267.44a

1&93

4.i)1 2.80 2.60 2.55 2 31 2.24 1 96 1.94 1.46 1 35 1.34 1.11 1.177 1.05 d.97 0.9T 0.74 0.51 0.36 0.44 0.39 0.26 0 16 0 15 0.15 0 12 0 10 0.04

15.391.735 34 05

I!SD IHB THR THE

$3.254 24.389 15.732 4.317

0 10 0 05 0 03 0 01

87,702 0.11)

15.479.437 34 24

15.479.437 34 24

TOTAL INVESTMENTS

'i Floa:ing k t e s are indicared as at p n e 30. 2005

140

43.489.451 96.21

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Equi ty Income Fund -


( C u r r e n c y - USD! Al l s e c u r i t i e s a r e o r d i n a r y un le s s o the rwise s ta ted

Number u l qh of shares or Description C o m t y Tr'iciing Market net

lace value crrdc currency value asst'rs

TRAVSFFRAR1.F SFC1:RITIES AnhllTTED SHARES Aerospace & Defence Rolls-Royce Group FLC

Airlines Qantas Airnays Ltd

AULO Components GKIi P1.C l'aleo S A

1 1 4 133.860

374,586

161.580 20,397

23.050

28,550 13,170

33,270 62.593 75.870 39.780

121.540 96.730 3.400

51.310 13.550 22.000

63,200 27.960

995.700

33.780 13,200 34,368 89,530

6.740

19.120 76,370 1 .ROO

187.130

60,140

73,950 51.000

17.300 53.570

.\US ALD 961,113 1.59

GBP 1,209.001 FI!R 015.637

2.00 1.51

3.51

1 73

2,123,638

Automobiles Vulkswagen AG

Chemicals hkm Nohel L V BASL; AG

DEI! EllR 1.052.862

1.125.487 883.115

1 86 1 36

2.008.602 3 32

Commercial Banks Bank of Amenca Corp National .4uujtralia Bank Ltd 1 ISBC lioldings PLC K u y l Batik u l Scotkind Group PLC Lloyds TSB Group PLC Nordea Dank AN lCICl Bank Ltd.

I:SA u m ALS AUD GBR GBF GBR LBF GHK GRP SLVF SEK IND I N K

1,563,055 1,466,070 1.209.657 1.201.503 1,029,871

878,903 32.968

7.382.027

2 58 2 42 2 00 1.98 1 7 0 1.45 0 05

12 18

Diversified Financial Services INC; Grocp NV Kurlamro Lunrpe N\' Cheung Kong Holding Ltd.

NLD LUK u ILD El!R I IKG H K I I

1,470,922 I . 110.:90

214,456

2 40 1.03 0 35

2.776.1 68 4 58

Diversified Telecommunication Senices UCL In< TDC AS Telefmns dc \Ieuico SA (TChllex). I

1,496,041 1 198.713

Y42.935

2 47 1.98 1.55

3.637.699 6 00

Electric Ctilities sucz SA E.ON AG lberdrola 5.A. Hr. National Lnd Ti-anxo PLC

1.188.197 1 176 812

907,387 868 4Y9

1 Y6 1 .Y.t 150 1 4 3

F KA FUR DEL EUR t S P t l ! R GBR GBP

4.140.895 6 83

Energy Equipment & Sen-ices SRM Olfshore KV

Foud Products Lidever LV Cadbury khweppes PLC Nes:lc SA

N LL) EUR 462.409 0.76

U1.D E1:R GBR GBP CI It CHI:

1,241,198 719.210 460.602

2.05 1.20 0.76

2.431 .0i0 4.01

Hoiels, Restauranis & Leisure Compass Group PLC

Household Durables Elcc~mlux AB, R

Industrial Conglomeraies Smiths Group PLC Hurchison Whanipoa I.td

GBR GBF 1.206.212 1.9Y

2.43

2.01 0.76

2.77

1.473.059 S M t: 5t.u

1,217,464 461,050

GBR GBF HKG HKD

1.678.514

Insurance XL Capital Ltd., A Sairpo OYJ. A

1.287.466 834.226

2.12 1 38

RMI! I.IN

1?Sn LLK

2 , 12 1 .692 3 50

141

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Equi ty Income Fund -


(Cur rency - USD) A l l secur i t ies a re o rd ina ry un le s s otherwise s t a t e d

124.020 23.670

7.065

1T1.220 7l.930

16,10Y 1 4.980 2,110

76,130 YO.110

193,360 49.000

49,17717

36.17517 31,670

40.3~0

655,000

22n.000

352.350

Media Pearson PLC \ X L ! sv

Melals 6r Mining POXX

Mulli-Line ReVdil 1-csco PI .c. Marks EJ 5periccr Gruup PLC

GBR GHP N LL) ELR

KOK

GRR GBR

KRM!

GBF GBF

1,460.797 660.738

2.121.53s

893.536

2.41 1.09

3.50

1 . 4 ~

977,703 364.534

1.61 0 77

1,442.237 2 38

1 T.1. NLD FRA

LUK ELIR LUK

I 188.Y20 978.789 496.065

2,663,774

196 1.62 O 82

4 40

Paper & Forest Products 11FWKymmenc Gorp Stura Enso OYJ. R M-rcal OY], R Yorske Skogindustner AS.4. A

FIN FIK L'IN

NOR

EC!K EL!R EUR NOK

1.465806 1,352,475 l.Oi8.556

807.9 19

2 -t2 1 90 1 7 5 133

1.4~4.756 7.30

Pharmdceulicak llerck N (lo, Inc Plizcr 1111'.

C;laxoSmithKline FLC Brisiol-\l)ers Squibh ( 3 1

1.511,356 I . 116.438

866,057 ~ 7 2 , 4 9 5

I 53 1 84 1 44 143

Real Estate Hmg I.ung Group Lid

YIIC Yuen In&srnal Holdings Lid.

Wireless Telecommunication Services Vudalone Group PLC

TOTAL SHARES


l O l A L INVESTMENTS

.l-exliles, Ap drt-1 6r LUXUr). God5 HKG

GBK

HKD

HKD

GUP

4.366.346 7.21

1,163,193 1.Y2

1.15

858.451 1 4 2

52.837.972 87 21

52,837,972 87 21

1 42

....

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Income Fund -


(Cur rency - LSn) Al l secu r i t i e s a re o r d i n a r y un le s s o the rwise s t a t ed

Number or sh;ires ur Description

race value Countr) Trading

C U d Y currency

Aerospace & Defence RoIIs-Ro).~~ Group PLC

Airlines (>antas Ainvays ILrd

Auto Components GKh P1.C Vale0 5'4

30.930

106.689

70.680 2.319

4.980

8.020 3,0817

11 ,OR0 7.0DO

13,546 26.800 12.9RO 22.380

1.192

12.660 1.3W 9.000

20.800 7,590

329.100

13.080 3.690 7,949

20.980

1.540

4,050 26,100

840

113.150

14,930

12,710 12,000

2,690 7,260

GBF 159,163 0 48

0.83 AL!D 273,774 ,\US

GBR FRA

GBF FUR

326.677 104.102

0 99 0.31

430.779 1.30

Automobiles Volkswagen A(; EUR 227.473 0.69

Chemicals A h Nubel NV RA5F AC

N1.D D t U

ElJR EClR

316.162 204,973

0.96 0.62

52 1,135 1.58

Commercial Banks Ku)A Bank of Scotland Gruup PLC Rank of Ainenca COIF Naironal Austr;ilia Uarik Lid. L lqds TSB Group F1.C HSRC Hnldlngs P1.C Nordea Bank AB lClCI Bank Lid.

GBR GBF

.413 AUD GRR GBP GRR GBP

C!SA w) 334.657 319 270 317,278 227 090 206 951 203,327 11 558

101 0.97 0 Y6 0 69 0 63 0.61 0 03

S\VF SEK IND INR

1.620.131 4 90

Diversified Financial Services I l i G Gruep NV Rodanico E u r o p e liV Cheung Kong Holdings Ltd

S1.D FLR SLD EUR HKG I IKU

357,994

87,732 106,734

1 .OR 0.32 0 27

552.460 1.67

Diversified Telecommunication Senices RCF Inc. TDC AS Tcldunus de Mexico SA (Telmex!. L

492.368 325.405 31 1.722

1.49 0 98 0 Y4

3 41 1,129,495

354.994 328,972 209,870 203.520

Electric Utilities Suez SA F on. AG Iberdrola SA. Br. Kational Grid Ir;inscu PLC

1.07 1 00 0.63 0.62

FM LUK DFL: EUR ESP ELR GRR GUP

1.097.356

Energy Equipment & Services SRM O C l s h ~ NV

Food Products Lnilewr I i V Cadbury Scliwcppcs PI .C Nesrle 5A

105.654

N LD GBR CI IL

EI!R CRP CHF

262.9 117 239.213 214.Y48

0 80 0 75 0 65

727,071 2.20

1 44 Hotels, Reslduranls 6r Leisure Compass Group FLC

Household Durablcs Flectrulux AB. B

Industrial Conglomerates Stn~rhs Group PLC Hulshison Wharripua Lid

475.335 GBR GRP

318.090 0 96 5WE SEK

209,249 108,482

0 63 0.33

(JBR GBF I IKG HKD

317.731 0.96

Insurance XL Capital Lid.. .4 Sampo OYJ. A

200,190 113,057

0 61 0 34

L! 5 L) EC'R

313.247 0 95

143



(Currency - USD) A l l securi t ies are ordinary unless otherwise s ta ted

% shares or Desei-ipuon Country ~ I rad lng Market net

Number of

lace value code currenc) \ d u e a55'AS

Media Fearson FLC V h C ' h \

26.930 7,270

589

26.970 16.660

13.623 1,390 3.470

4i.250 24.060 74.680 24.140

14,150 12,750 8.330 7.140

272.0UG

72.700

79 .hYt7

1.2J8.000 2.800.000 5,555.000

490.01?0 405,000

1,300,000 5217,000 260,000 22i).000 900.t7t717

85 .uuu 50.000 60.OOO 35.000 37.L7t70 25.303 35.000 20,1701) 15.000 15,000 15,000 10,uoo

3L70 .(7017 5.000

70.000

GBR GBP N l D ECK

.3 17.201 202,939

520,140

103.908

0 Y6 0.61

1 5 7

0 3: Metals & Mining POSCO

Multi-l.ine Retail Tesco FLC Irlarks €-z Spencer Ciroup FLC:

K O R KR\V

GRR GRR

GRP GRP

154.DO4 107.593

0 47 0 32

261.597 0.79

Oil & Gas 351.294 326.792 226.72Y

1 06 0.99 0.68

Eni 5pA

Royal Dutch Ferrolruni Co .1rrtal SA, H

11'4 FR.1 YLD

EUR EL!R EUR

904.815 2.73

Paper & Forest Products S i r x i Enso Ol]. R LPM-Kyniinene Corp !+rc;iI OYJ, B hvrskc Skugindusirier .45A, A

1.83 1.39 1.23 1.20

FIN FIN FIN NOR

ELR FUR ELR NOK

604 310 361.433 405 275 398,024

1.869.0-t2 5.65

1.32 0.96 0.61 0 59

Pharmaceuticals hlerck 6r Cu.. Inc Rrislol-Myers Squihb Co. GlasnSmithKhnc PLC: h e r Inc.

435.820 3 18,495. 201.606 196,YLl

1,152,842 3.48

1.46 483.036 Real Estate 1 lang Lung Group I .id

.l-extiles, Apparel & Luxury Goods Yue Yuen liidumml Holdinxs Ltd.

Wireless Teki'ummuniraliun Srrviccs Vodafoue Group PLC

TOTAL SHARES

BONDS Government Bonds Republic or Argentina. FRY, 3 01%. 08/03/12 + Rep-dblic 01 Poland, 6.25%. l0/24/13 Kingclom uf h u r n a . 6 7 5 8 . 01/15/07 Repuhlic r r l Venezuela. FRY. 3.008. 04/20/ll + Republic of Venezuela. Y,25%. 09/1Y27 Rq~ub l i c or Poland. 6 W6. 07/24/09 C;owmment ol h e w Zeal;inrl. 6.50%. 04/17/13 Repuhlic of Philippines. 8.8758. C3/17/15 Republic vf L!kr;iim. FRY. 5.367~. 08/07/09 + Kingdom 01 5wecleii. 8 OW. OW15/07 Goveinment uf L'ramc. 4 Federal Repuhlic of Gem1 Rep-Jhlic of Philippirirs, 9 Republic or Austria. 4.657. 01/15/iB (iowmment 01 Finland. 5 375%. 07/04/13 Kcpuhlii or Ireland. 4.60'5. 04/18/16 Republic Of Venezucl3. 7.65'6. 04/21/25 Hclleiiic Rcpuhlic, 5 90%, 10/22I22 United Mcxicm 5iaics, 7.50%. 03/08/10 R~public or Ausiria. 7 00'h 07/15/12 Go\-eniiiient of Le:herlands, 4.25%. 07/15/13 Hellenic lkpuhlic, 4.60%. 0.5/20/13 Republic of Slovakia. 4 95% 03/05/08 Repuhlic of lreLiriLl. 5.00%. 03/18/13

HKC;

HKG

GBR

HKD

0 49 HKD 160.793

194.154 GBF 0.59

42.08 13.919.221

1.129.981 044,626 905,231 450.800 426,262 407.8 1Y 379,714 272.922 237,600 129.814 112.594 63.978 63.681 61.757 49.666 34.220 31.538 30.790 21.3417 20.616 19.806 13,354 10.038 6.927

5,825.032

38.426

AZKG FOL NOR VFli VEL POI. NZL PHL LlKK W'E

USD FLY NOK IlSD U5D PLN h Z D USD c: 5 13 SEK t X R ELR c:SLl ELR ELK ELR I!SD EUR FUR EL!R LUK FUR 5KK FI:R

3.42 2.86 2 74 1.36 1.29 1.23 1.17 0 83 0.72 0 39 0 34 0.19 0 19 0.19 0 17 0 10 0.10 0.09 0.06 0 06 0.06 0.04 0.03 0.02

I,K4 DEI! PI IL AUT FIS IRI.

VEL GKC LIEX N!T NW GKC sss IHL

17 61

Sei'urilies Maruring Wilhin One Year hew h u i h \Vales l r L w u r ) Corp , 6.50% 05/01/06

TOTAL BONDS

TOTAL TRANSFEKABLE SECURITIES ADMITTED TO AN OFFICIAL SlOCK EXCHANGE LISTING

AL!D 0 12

5.863.398 17 73

59 81 19,782,679

144



(Cur rency - USD) All s ecu r i t i e s a re o rd ina ry un le s s o the rwise s t a t ed

humbcr of shares or nescriprion

lace \ - a h

"0 0 1

Marker l l C l value assets

100.000 100.000 100,000 50.000 50,000 50.000 50.000 50,000 50.000 50,000 50.000 50,000 50.000 517,000 50.000 50,000 50.000 50.000 50,000 50,000 50.000 50,000 50,000 50.000 50.000 5c).000 50,l)OO 50.000 50,ooc 50,000 50.000 50,000 517.000 50,000 50.000 50,000 50.000 50,000 50.000 50.000 50,000 50.000 50.000 50.0DD 50.r7r70 50.000 50.000 50.m7 50.000 70,000 50.000 50,000 50.000 50,000 50,000 517,000 50.000 50.000 50.000

Ik4NSFER4RLE SECL!KITIEI; DEALT I N Oii ANOTHER REIdLlTED MARKET BONUS Corporate Bonds LI Risu Curp., 7 8756. 06/15/12 Qwcsr Coi~imuIiicBulins Inrcmauonal Inc.. 8.00%. 02/15/14 Allied Waste North America Inc.. B. .5.758. c)2/15/11 Fimep SA, Senior Nore. 10 50%. 0Z/1 5/13 Dex Media \Vest LLC:. 9.875%. 08/13/13 Gcurgia-Pacific Curp.. 9 3756. 02/01/13 D.R Horron Inc , 7.@75%. g8/15/11 CF Ships Ltd.. 117 375%. 07/15/12 Midmesi Gtmer;tuun I.I.C. 8 75%. 05/01/34 BCP Cq-stal Holdings COT, 9 625%. 06/15/14 LlG5 Curp , 10.00%. 06/01/12 TRW Aurointrrive lric,, 9 375%. 02/13/13 k y d l Caribbean Cruiscs Lrrl.. 7 . 2 3 6 . 03/15/18 Advansiar Coinniunicaiions Inc.. 10 758. 08/1 3/10 Uiilicorp Uniml Inc . Senior Yuoie. 9 95% 02/01/11 Nexrel Cniniiiunicaiicins Inc , 7 375%. OW01/15 Vanguard Health Holding (10, 11 LLC. 9.00'k. 10/01/14 F i rmius !dedicdl Care Capird TrusL 7.875%, 06/15/11 Nalco Co , 8 877%. 11/15/13 Khurlla SA. 13 25%. 06/01/lil Fnrest City Enterpnscs Inc , 7.625%. 06/01/15 Canbest Media Inc.. T.625%. 04/15/13 Plains Explurauun 6r PruducLion Co , 7 1256. 06/!5/11 Xerox Coqi.. Senior Kote. 7 125%. 06/17/10 Hanuver Lrluipmenr . I r u s ~ 01, 8 758 , 09/01/11 Pealmdv Energy Corp.. 6.87SB. 03/15/13 h n a c k Lnlcrrainmcnr Inc . P 755, lO/Oi/13 Case iiew Holland lnc , 141A. 9 25%. 08/01/1 1 l m a r Mcrlia Crrrp., 7.25%. 01/01/13 Smithlield Foods Inc , 7.00%. 08/t71/11 TCAJS Gcnw LLC. 6.875%. 12/15/13 Host hlarnott LF. 7 00%. 08/15/12 Flexrronics Irwrriariorial L d . 6.50%. 05/15/13 Intelsat Bermuda Ltd.. H.25'fi. 01/15/13 Da\ii.i Inc , 7.25%. 03/15/15 sralio11 C ~ S I I I ~ S illc , 6 n x , , 03/01/16 Uu)d Gaming COT. 6 75R, 04/15/14 Abiribi-Cunsolidami Inc . 8 3758. 04/01/15 Comrnercid Vehicle Group Inc.. 8.00%. 07/15/13 JohnsonDiwrscy Inc . 9 625% 05/13/12 Charier Coniinutii(iirions t tuldirigs 11, 10 256. 09/)/15/10 Owens-Brockw-ay (;lass Container Inc , I. E%. 12/01/14 iitmelis Inc.. 7 25%. 02/15/15 DlRECTV Holdings LLCIFinancing <:ti., 6 . 3 7 5 8 . 06/15/15 Mark\rcsi Energ) Panners 1.p. 6 8756. 11/01/14 Millicum International Ccllular SA. 10 0O')b. 12/01/i 3 AlrlC Entertainment lnc., 9.875%. 02/01/12 FchoSIar D55 Ccrrp., 6.375%. 10/01/11 FQ Corp , 7 50%. 02/1 5/13 L-3 Curnmunicauons Corp.. 5.875% 01/15/15 Rite Aid Corli.. 9 25%. 06/01/13 Kayu\-;ic Corp . 7 3758, 02/01/15 CSC Holdings Inc., 7.625%. 07/15/18 Tentt Healthcarc C q , 6 375%. 12/01/11 Lin Telemion Corp., 6.50%. 05/l 5/13 Koriek Inr . 8 SO%, (19/01/1.t General hlotors Acceptance COT , 6 873%. 08/28/12 JSG Funding PLC, 7.75%. 04/01/15 InhlarSat Finance F1.C. 10 375%. 1 1/15/08

C!SA USA [!SA UP.4

103,500 95.125 94.000 57.230 57.250 56.812 36.459 76,270 56.250 56.250 55.750 55.625 55.250 54,875 51,500 53,250 54,250 54.000 53,875 53,875 53,750 53,750 53,7517 53.437 53,375 53,250 53,250 53,125 53,000 52.875 52.875 52.125 52.000 51.875 71,625 51.625 51;500 51.250 51.125 5 1,000 50.813 50,813

50,000 50.000 50.000 49.875

49.375 48.750 48.750 18.625 48,500 47,875 47.750 46,750

41.250 39.500

50.438

49.813

45.833

0 31 0.29 0.28 0.17 0 17 0 17 0.17 0 17 0.17 0 17 0 17 0.17 0 17 0 17 0 17 0 16 . . 0.16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 16 0 15 0 15 0.15 0.15 0.15 0 l i

0 15 0.15 0 15 0.15 0 15 0.15 0 15 0.15 0.15 0.14 0 14 0.13 0.12

3.200.65~ 9.68

14.5



(Cur rency - USD) A l l securit ies are ordinary unless otherwise stated

B ol

code currency \ a h a w l s Counrry Trading Market r1ct

965,000 16,400.000

675.000 50c).O00.00i)

605,0110 400.000.000

9.000.000 2,400.000.000 2,700.000.00U 2.800.000.000

277.201) 135.000

5.300.000 1.750,000.000

175,<0110,00L0 600.1100 395.@00

1 ,000.0U0.000 140,000

1 @@.000.17@0 5.tT.553 82.354 85.0170

75U,000,000 475,000,001)

100.000 700.000

lU0,000 50,000 50.0u0 50.000 50.000 50.00@

Govcrnmeni Bonds Republic ol Singapore. 4 OO(x:. 03/01/07 Republic or SIL)vakla. YO?^, 0211 1/14 (2ueeiislaiid Treasury Coq3 . h.OO'%. 08/i4/13 Korea .I rea5:irv Honcl, 3 75%, 09/10/07 Yen Zcaland G;owrniiic;ii. h 00%. 04/15/15 Korea Treasury Bond 4 50%. 09/09/08 Republic u l Slb\dkia. 4 80%. 03/14/09 Indmiesia Recapital Bond. 14.2755. 12/15/13 Indonesia C;overiim<:i~. 10 75%, @5/15/16 C;cxcrninem or Indmesia. 10.00')h. 07/15/17 Republic ul Pem. FKN, 4 50?0, 03/07/17 Gu\,ernment or Frmce. 6 00%. 10/25/25 Republic of Slo\-akia. 5 30F, 05/12/13 Go\-t.rnmcni of Indoncsi6i, 11 00%. 10/15/14 Korea Treasun. Bond. 4.50%. 09/03/06 Go\erninent d Jlala~sia. 4.305B. X/27/09 Repuhlic of Poland. 5.758. 0Y/23/?2 Indonew Kccapital Uurid. 14.23%. C6/1?/13 Yen Soulli Wales Treasur) Corp.. ti 005 . 05/01/12 Korea Treasuv Bond. 4 T 5 8 . 03/12/08 Kingdoin or Sheden. 3.50%. 12/01/15 Republic or Brazil. RG, FRL, 3.125%. 04/17/12 + Govcriiinent of Canada. b 00% 06/01/08 1ndonrsi;r Guvt.rrimt.rii. 11.0070. 11/15/20 Indonesia Recapital Bund, 13.15%, 03/15/10 Ptru Bond Sobcrano. 9 91%. 05/05/15 Republic ut Slovakia. 5 008. OlLU13

TOTAL BONDS

I ~ O I A L IRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MAKKEI

TR.\NSFE&IBLE SEC:I;RlTlES hOT ADMI I-ILU TO AK OFFICIAL 5TOCK EXCHANGE LIYIIKG K O R DF.41.T 1U OK ANOTHER RF(;I:LITED !dIARKET BONDS Cnrpnratc Bonds C;rlpinr Curp.. 134A. 8 50%. 07/17/10 D i i e p Holdings Inc . 144'4. 10 12%. 07/15/13 ;\j\legk;riy Lrirrgk Supply Co.. I.1.C. 144A. 8 25%. 04/15/12 Roge:c;s LVireles Communications Inc., 7 25%, 12/15/12 Dobson Cellular Systt,rns lric , 134.4. 9.877%. 11/01/12 Chesapeake Eiierp Corp . 144A, 6 375% 06/15/15

.I'O 1 Al. BONDS

COrAl TRANSFERABLE SECURITIES NOT ADMII ltl) TO AN OFFICIAL STOCK EXCHANGt LlSl lNG NOR DEALT IN ON ANOIHtK K t G t L A I € D MARKET

TOTAL INVESTMENTS

'i. Floaling Rates are indicated as at June 30, 2005

SGP S55 AU'; KOR NZL KOR s5s IDN IDN IDA PER FRI 555 IDS KOK 41YS POL lDL

KOH jw HM CAK I D S IDN PER sss

SGD SKK AC:D KRM! NZD KKW SKK IDR I I I K IDR 1:SD E1!R SKK 1DR

KRW M Y R PLh 1DR

AVD KKW 5EK

CAD IDR IDR PEN SKK

t'w

w i 1!SD L! 5 D I!PD LISD LISD

5Y1,716 581,621 538,191 475,150 429.5L5 391.86T 305.212 285.983 266,749 265.656 261.953 219,933 199.722 177,645 170.387 163,645 131.1124 117.572 110.542 98.387 83.832 79.678 75.218 72,810 52.478 34,039 24.708

1 T 9 17ti 1 h3 1.44 1 30 118 0 92 0 86 0.81 0 80 0.79 0 h i 0.60 0 54 0 52 0.49 0 40 0 36 0.33 0.30 0.25 0.24 0 23 0.22 &:ti 0.:0 (707

[email protected] 18.76

9.406.022

9,406,022

77.500 56.75D 56.240 54.250 53.0011 51,500

349.250

349.250

349.250

28.44

28.44

0 2.3 0 17 0 17 0 16 0 16 (3.: 6

1.07

1.05

1.05

29.337.951 89 30

146

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Smaller Companies Fund -


(Cur rency - USD) Al l secu r i t i e s a re o r d i n a r y un le s s o the rwise s ta ted

kumher nf shares or Descripticiii

face \slut.

x (lc

code currency value 11s5ets

C n u n n ~ Trading Market net

TR4NI;FLRABLt SECL:RIIIEC. ..\LISlIIILL) 10 Ah Ot~tlCI.\L S I N K EXCkL1 SHARES Aerospace & Defence CAE Inc.

.XGL LISllhG

L I Y

CY. KOR

CAN

THE 5W:E

CHE

CAN KOK KOR HKL HKC;

1.064,400

283.600 31 1.831

314,YOU

216,320 338.1 30

3,705

212,600 492.180 471.290 424.800

6,944,000

236,200 119.290 31 7,100 310,000 185,621 107.500 138,226 1R6.515 161,660

1.044.000 3,236,000

4,595.000 318,230

145.270 134,224 407.870 117.330

156,450

2.773.337

1,189.260 157.600

2,196,000

399,146 3,863,000

231.200

CAD

CAD KRLV

CAD

CHF SEK

CHF

CAI) KRM! KRW HKD HKD

5.708.194 1.76

1 1 0 0.84

Auto Components Liriiirnar Corp. Halla Climate Control Co Ltd

3,576,541 2,706,856

6,283,397 1 94

Building Products Royal (;roup Teclindogies L d

Capital Markets Vontobel Holding AC; D Cnrnegic & Co.. Ai3

3.439.198

4.835.050 4.002.230

1.06

1.49 1.23

8.837.280 2.72

Chemicals Gurit Heberlcin AG, Br

Commercial Banks hureiitian Rank of Canada D a e p Bank Co , Lid Hank of Pusan Dah Sing Financ-in1 Holdings Lid, C.lTlC Inrernariorral Firlencial I lvlilirigs Lid

2.624.544 0 81

1 4 3 1.30 1 2 9 0 87 0 83

4 695,907 4 215 288 4.191.269 L 842 6.23 2 680 788

18,625,879 5 74

Commercial Setvices 6r Supplies Qwbecor World Inc. Steincr Leisure Ltd. Sohgo Security 5eivices Co.. Ltd. Connrhian Colleges Iric. Honicscn-e PLC SIe1tec Curp Coinstar Inc Ccntral Parking Cvrp Vcdior LV

4,627,214 $,422,080 4,205,495 3.958.700 3.308.663 3.307.247 3,136.348 2.564.781 2,280 706

1.42 1 3 6 1.30 1.22 1 02 1.02 0.97 0.79 0.70

31 ,811,112 9 80

Communicaiions Equipment Taiwan Green Foinr Fnwprises Co , Lid U-Link Corp

4.087.0119 3.810.664

1 2 6 11:

T\Vh I WN

7.897.63 2.43

Computers & Peripherals KYE Syskms COT. hiaxtor C o y .

3,394,570 1.654.796

I LVN USA

. I W L ) USD

1.05 0.51

1.56

1 6 7 1 45 1 2 $ 0 85

5.21

5,049,366

5.425.834 4,708 275 4.022.192 2.768.389

Construction & Engineering UFS Corp Im!ech >V Jcnoptik A(; Arcadis SV

USA h L13 DEL' h LD

I:SD EC!K E1!R EI!R

16,924.690

Construction Materials Tiran Cemenr Cu.

Consumer Finance A L I ~ Europe PLC

Containers & Pd'ackaRing US Smith PLC Huhlamaki OYj

4.831,029 1.49 GRC LL!K

GUK GBP 3,080,326 0.95

3.1 10.51 3 2.664.965

0.96 0 82

5,775,478 1 7 8

Diversified Telecommunication Serviccs I luan I Isin Holdings Ltd

Electrical Equipment Yestas Wind Sysrcms AS AcBel Polvtech Inc Draka 1 Idding hv

1,093,898 0 34 SLP SGD

6.627.856 3,3 12,000 2.965.338

2.04 1 02 0 91

UhK DKK TWN TIVD ?i LD EIJR

12.905.214 3 97

147

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Smaller Companies Fund -


(Cur rency - USD) Al l secu r i t i e s a re ordinary unless otherwise s t a t ed

Lumber 0 1 90 elf

f x c ralut. code currency value assets s h a m or Llcxripticiri Counrr) T!'3dlTlg \txker l lCl

Eleclronic Equipment & Instruments Dac Duck Electronics Cv . Ltcl <;SI Companies Inc.

389.850 299,700

1,365.338 65,1771

4.057.6(3t1 2 15,550

K O R KR\V CAN C.4D

3.033.632 2.805.942

0.94 0.86

5.839.571 1.80

Energy Equipment & Services Juhr i \\;uod Group 5Blrl Olfshure NV

GBR K1.D

GBF FUR

1 39 1 38

4.521.676 3,463,306

8.Y85,YSL 2 77

Food Products Want \Vant Holdings Ltd. American I d i n n Pasin Co , .4

5,153,152 4.530.861

1.59 1 39

I! 5 L) U5D

9.684,013 2 98

2.488.517 0 77 Oil & Gas Gail India Ltd , GDR, Reg > I:SD

CAI)

80.796

243,000

68,820 546.540 170.080 188.9 16

8.200

381,317 ,111,512

6i3.385 b25,560 93,234

206.821

243,200 264.300 8.31.i)5c) 397.500

Health Care Equipment cjr Supplies MDS lnc 3.651.635

4.808.948 4.383.251 3.157.076 3,288,869

Health Care Providers & Services OPG Grcrep NV Senice Curp IritcrIiiiticird Gencrale de Sanie Digiiity Caring Funeral Serr-ices

1.48 1.35 1.28 1.01

NL.1) u SA FRA GBR

LLK USD ELR GBF

16.638.134 5.:2

1 03 Hotels, Restaurants & Leisure Kuoni Reisen Holding AG B

Household Durables Bo~is Hornes Group P1.C Ugai Lik liidustnal Holding Ltd

CHF 3,329,771 CHE

4.850.057 2.797.165

1 50 0 86

GBR HKG

GRP HKD 1

7.647,222 2.36

1ntiustrial Conglomerates Bodycote International PLC 1 LI Sherig Indusrrial Co . Lid Aalhens 1ndus:ries N\; Tredcgar Corp

5,148 669 4.326.637 1,275,599 3.226 455

159 1.33 1.32 0.99

16.Y7T.358 5 23

IT Services Conwrgvs Corp. Sai )am Computers Senices Ltd lhicl Lugi5tik .4G BenringPoint Inc

CiSA 3,386.744 3,085,273 3,046,865 2.913,675

1.07 0 95 0.94 0.90

3 86 12.532.557

Leisure Equipmenl 6r Prvducls Amer Sprrrrs Corp , Ltd Giant Manutacturing Cei krader Grerup Holdings Co., Ltd.

1 2 4 111 0.33

2 12,920 2,241 ,0011

10 048.000

FIN .IWh HKG

ELR 1 LVD HKD

4,035.806 3.61 7.3: 5 1.060.291

8.71 1.312 2 68

Machinery V o d u h AG AT5 Aui7ma!ion Tooling Systems Inc Merso OYJ \Vcir Group P1.C. KCI Konccranes Interriatioml P1.C InLt.nsy5 P1.C

88.408 265.000 147.777 492,330

43.210 9.485.100

DFU U N F'IIi

EL'R CALI I:UK LBP EI:R GBP

4.12O.h08 3 655.620 3,215,062 2 83b,590 1843.7YO 1.784.159

1.27 1.12 0.99 0.88 0 57 0 55

5,38

GBR F1 U LBR

17,465.829

1.23i.263 f 322 302 THA 0.38

Meldls 6r Mining :ki3 IUuiniimn Holdings Ltd lluka Resuurccs 1.d. Sons or Gnalia I rd

33.3 1 2 ,000 603.322

L . P ~ ~ , w

HKD AI:D '4UD

3,943,846 3.459.289

0

1.21 1.07 0.00

2 28 7.403,135

Orrice Electronics CIi-c l \ 3176,400 ELR 1 39 4,5 15 642

148

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton G l o b a l Smal ler Companies Fund -


( C u r r e n c y - USD) A l l secu r i t i e s a re o r d i n a r y unless o the rwise s t a t ed

Lumber nf % ur

hce \ dlUT code mrrcnc) value assets shares ur Description Cuuntp 1 radirig Markei l lCl

Pa er & Forest Products H!h i su Paper lvl~lls I.id Dumtar Inc M-rt'al O j J , H Hansol Paper (10, Ltd

I 29 1.27 1.22 ? .173

7917.000 560,200 727.495 324.810

15,612.00U 73.036

856.900

129.590 225,600

4.42 1,000 2.456,000

't,Z48,000 2 15,lTO

9.592.0017

1,152.000

996,000

162.509

3LO.000

2.726.000

86.077

JFY C.\Y FlK KVR

CHN F I S

CAN

ClS.4 I:SA EGP I1KG

HKL (:SA HKC,

4,176,651 4.1 42.875 3,947,989 3,343.863

15,611.358 4.81

Pharmaceuticals China Fharniaceutical Enterprise &z Investment COT.. Ltd Oriuri OYJ

3,193.38+ 1.407.5.35

0.99 u.43

4 601.919 1.42

1.57 k d l ESvdk

Imgacy Hutcls

Specialty Retail Gamestup Corp. S h q w linage Corp i X l M Intematiunal Lid Giurdanu 1ntemauon;rl L!d

5.1 13,002

4,238,889 2,871,888 2.805.236 1 ,hi)0.883

1.31 0 88 0.86 0.52

11.606.896 3.57

Texiiles, Appatel & Imxury Goods Tex~inca Holdings Ltd Tommy Hilriger Corp. Founuin Set Holdings Lid

3,523,946 2,960,739 2,878,450

1 08 0 91 0 89

9.365.135 2.88

Transportalion Infrastructure Hopewll Holdings Ltd.

Wireless Telccommunicalion Services Toial Access Cominwiic3iioii Public (h , Lid

TOTAI. SHARES


TFLIYUSFER,IBLE C;ECI!RITIES DEALT IN O N AYOTHER RELULATED MARKET SHARES Diversified Financial Services Irimarsai PLC, Kcg 5

Electric Utililies Gluiv SPP Public Co.. L[d

Health Care Equipment & Supplies Moulin Global Eyecart. I luldings

. l O l A L SHARES

RIGHTS Communicaiions Equipment Taiwan Green Foint Enteiprisc Cu , Lid , ngliis , 0 008. 17@/03/05

TOTAI. RIGHTS

2,957,514 HKG

THA

I IKD

1!SD

0.91

0.98 3.187.200

96.85 314.442 362

314 $42 362 96.8.5

GRK GRP

.I1 IU

IIKG I IKD

984.003 0.30

17.06 175.78

0 00 0

1,159.781 0.36

TlVK TWD 70.655

70,655 0 I72

'IOIAL .lUANSFERAULE SECURITIES DEALT IN ON ANOTHER REGULATED MARKET 1.230.436

3 15,672,798

I) 38

97 23 TOTAL INVESTMENTS

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Total Return Fund -


(Cur rency - USD) A l l secu r i t i e s a re o r d i n a r y unless o the rwise s t a t ed

E m i h e r of shares vi- 1)escripticlri

facc \ .due

'6 of

code currency l d l U C a s w s Country lrarlirig Market net

2.100.000 200,000 200.000 100.00u 100,000 1170,000

9.2;4.333 7,220.01717

10,82~l.~)00 9.030.000

15.l~U.000 2.l50.000

10.T75.000 1.035,000 4,3717,000

8:0,000 1.000,000 1,3m,000

600,000 1 ,240.t71)17

1,960.0170 4T0.000 810.17170 450.000 350.000

390.000 358.696

1 ,800.000 200.17170 250,000 280.004 170,000 150,000 130.000 190,000

$.0t70.000 120,000 13D.000 120,17017 lY0.000 100,17017 1170.000 800.000 80,17017 60.000

-thO.OOO

5 0 0 , ~ ~

685.000

19,355.000 15 .Y 80,000 2,17417,000 1.000,000

1317,000

TR,il'iSFERiBLE 5ECI;RITIEP AD.MITTED TO Afi BONDS Corporate Bonds General Electric Capital Corp.. 6 625%, 02/04/10

?IT1 Cahle PLI:. R 75%. 04/15/14 .4sprupulsion Capital HV. :44A2, 9 625%. 10/01/13 Frcscnius \4cdicd Carc hpi ia l Trust. 7.375'X. 06/l PCCV-HKTC Capital Ltd.. 6 00%. 07/15/13

Nalce~ cu, 9.00%. 11/15/13

OFFIC

7/11

Government Bonds Hfpuhlic of Argeniim 1,Kh. 3.0:%. 08/03/12 + Republic of Venezaela. FRK. 3 09%. 04/20/ll + Republic d Pol;rnrl. 6.0095, 05/24/09 Repuhhc of Pd3iid. 6 25%. 10/24/li Kirigdvm of Nunray . 6 7 5 6 . 01/15/07 Rcpuldic or I!krainc. FRY, 5 36%. 178/05/09 + Kingdom ol Swedtn. 8.LlL)&. 08/15/07 Kepublic of Philippines. Y.:2591. 02/22/10 Republic of Poland. 8.50'6. 11/12/06 Kcpublic d Austri'). 1.65% 01/15/18 Republic of Philippines. 9 09%. 02/1 5/13 Queensland Treasun- Corp.. 6 00%. :0/14/15 Gu\erritneni of Ncit;eri.mds. 5 5 0 % ~ OI/IWR Government of Nen Zealand. 6 50'B. 04/15/13 Republic of I:krainc. 10.00%. D3/15/07 Republic of Poland. 8.5t7.X. 05/12/0T (hcrrimrri1 u l Fiiilaiid. 5.00%. 04/25/09 Goreriiinent of Yew Zealand. T 008 . 07/15/05) Republic of Portugal, 4 879%. OW1 7/07 Govci-nnicnt ol Fmland. 5.375%. 07/04/13 Go\ernincnt oC New Ze~land . 8 00%. 11/15/06 (in\ einineiit of France. 4.25'X. 04/23/19 Sucialist Ke ublic uC Vietnam. 1 ,KN. -t 0625%. 03/12/16 -k Kingdom oPDcnnwk. 6 0O'fo. 11/15/0g Hellenic Republic. 5 90%. 10122/22 Kepublic ul L:krairir. 7 65%. 06/11/13 Kepublic ol Rrazll. FRK. 3.125%. 0+115/12 * l!nited Mexican States. 7.50%. 03/08/10 Kt.publlc Ld Ausiria. X O % . 07/15/12 Republic of Bulgana. 7.50%. 01/15/13 Kepublic vf 1.eriezucli1. 9 25%, 0911 5/27 Republic of Slovakia. 4 95%. 03/05/08 Republic or Ireland. t.60X. 04/18/16 1:eder;il Republic of Gerrneri), 3.00%. 0411 1/08 (iowrmnent of Finland. 5 00'fA. 07/04/07 Qilrerislarid Treasury Corp., 6 00%. 07/14/09 Government of Netherlands. 4 25%. 07/15/13 Federal Republic ul Germaii). 3.75%. 07/03/13 Kingdoni of Sweden. 6.50% 05/05/08 Hellenic Republic. 4.608. 05/20/13 Kepublic ul Ireland, 5 DO?;, 04/18/13 Kingdom of Sweden. 3.50% i 0/08/12

Securities Maturing M'ilhin Onr Year Kingdom of Sweden, 3 50%. 04/20/06 licirwegian .I-reasur) 1 ~ 1 1 1 . 0 00%. 09/21/05 Kew So:ith M:ales Treasuv Co:p , 6 50%. 05/01/06 Gcrrnan Treasury Ril l . 0 00?0. 07/13i05 Hellenic Republic. 2 75%. 06/21/06

TOTAL BONDS

TOTAL TRANSFERABLE SECLKIIIES ADMITTED .IO AN OFFICIAL STOCK EXCHANGE LISTING

:IAL STOC :K EXCtL4YuGE LISTIKG

LS.4 l.'SA GRR h LD 1;SA I IKG

.ARC; VEfi POL. POL NOK l!KR SLVL PHI. POL -\UT PHL. AC:S N LD NZL I!KR FUL FIN NZL PRT IYIN KZL FR4 VND DYK GRC IJKR BRA MLA , K T 8GK VEX 555 IRL

DEI; I'lh AUS N 1.f 1 DEI;

NZL? FUR EI:R LLK FI!R USL?

CiSI) l!PD PLY PLY SOK USD SEK LUK FLY EUK IJSD AUD FUR NZD FUR PLN EI!R fiZD FUR EUR KZD EUR L:SD DKK ELK L:SD USD EtlR ELR ELR I!5D S K K EIJR EI:R ELR AUD t L K FI:R 5LK FVR EI!R SEK

SLK LiOK X D E U K E1;R

1.465.458 264,989 255,914 138.544

106.115

2.362.30.5

I 31,285

1 0 3 0 19 0 18 c) 10 0.09 0 07

1 66

8.33@,238 6,642,4170 3.394313 3.046.SlR 2.465353 2.322.000 1.554.157 1.401.060 1,374,762 1.111.624 1,061,350 1.039.353

934,285 905,473 647,152 628,377 623,833 586.5i5 577,599 496.657

463,623 341,538 337.884 307.496 276.250 269,592 241.851 206.161 200.730 199.979 167.299 164.256 160.969 153.481 148.6.39 132.031 127.99T 115.052

83.101 69,586

t ~ n . 7 2 7

106 828

5 87 -t 68 2 39 2 15 1 74 1 64 1 09 0 cay 0 97 0 78 0 75 0 73 0 66 0 64 0 46 0 44 (3 34 0 41 0 41 0 35 0 34 0 33 0 24 0 24 0 22 0 19 0 19 0 17 0 14 0 14 (1 14 0 12 0 12 0 11 0 1; 0 10 0 1'19 0 09

0 08 0 06 0 05

0 0s

43 .Y 0 2 , l i 5 30.94

2.5 14.8AJ 2.435.034 1 .i(i7,809 1 .209,208

158.373

1 77 1.72 1.11 0 85 0.11

7,887,244 5.56

54.145),724

54,149,724

38 16

3a i b

150



( C u r r e n c y - U S D ) A l l secu r i t i e s a r e ordinary unless otherwise s t a t e d

humber 01 shares cir L)es;ription

race \-aluc

% of c0u:itr) .Trading Market net

C < X k currmcy value assets

1 .200.000 220.000 200.000 200.D00 200.~7170 200,000 173.000 150.000 150.000 150.000 150.000 1 50,000 150.000 150.000 l i0 .000 150,000 1 5d.000 100,000 100.000 100,000 100.000 100,000 100.000 100,000 100,000 100.000 100,000 100.000 100,000 100.000 1017,000 100.000 100,000 1017.000 100.(100 1170,000 100.000 1017.000 100,000 100.000 100,000 100.000 100.000 100,171717 100,000 100,000 100.000 1@0,000 1 00,r?00 100,000 100,000 100,000 100.000 100,000 100,000 [email protected] 100.000 100.000 100,000 100.000 100,000 100.000 100.000 100,000 100,000 100.000 10u.000 100.000 100.000 100.00~) 100,000 100.000 100,000 1 00,000 100.000 100,000 100.000 100.000 100 .OO@ 100.~7~70

I K;Iw:i:tw<LL sLCLKi-IiEs DEALT IS O N ANOTHER RECXIATFD MARKET BONDS Corporate Bonds Hutchison Whampoa lntcniational Ltd.. 7 45%. 11/24/33 C'S.4

MEN Feinex FrOJFCI Funding Has:rr I rust, 13$.\. I'KN. 2 7275%, L W l j / l U + Chxter Communications Holdiiies II . 10 25% 09/15/10 Securitized A s c i Backed Recc i \a lh I.I.C. 3 824388, 02/25/35 Qwrst CO~Itriuriici~ti[iris International Inc , 8.00% 02/15/14 (ieneral Moiors Acceprance Corp.. 6.873%, 08/28/12 Morgan Stanley ABS Capital. 1.90% 09/25/33 'IRW AutumuLive Inc.. 9 3756, 02/15/1.3 Roydl Caribbeati Cruisca L i d , 7.25%. 03/15/18 Smithfield Foods Iiic.. 8 00% 10/1 5/09 Cast hew Hollaiid Inc.. 144A. 9.27% i)8/01/1 1 Intclsat Bermuda Ltd , 8 258. 01/15/13 El Faso Coq? , 7 875%. 06/1 3/12 Owns-Brockway Glass Containe:- ltic , 6 75%. :2/01/14 N d i s ltic,. 7.2596. 02/15/15 CSC Holdings Inc , i.625'ih. 04/(71/11 Trnrt I lealthcare Curp . 6.375% 1UD1/11 l lr im Group PLC. 11.251. 05/15/11 Huntsman Inrematiotral. 10 125%. 07/01/09 Keickwuurl Specialties Group Inc.. 7 625% 11/15/14 Tysoii Foods liic , 8.27%. 10/01/11 Crown kurcrprm I luldings SA. 10 875% 03/01/13 JohnsonDiversey hic., 9.625%. 07/15/12 Laidlaw International Inc.. 10 756. 06/15/11 Park Place htcrtairimrriL Corp , 8 i25% 0 5 / i j / l l Dex Media Wesr 1.1.C. 9.877%. 08/15/13 Fimep SA. Senior Note. 10 S O Y . 02/15/13 Gcorpja-Padic Corp.. 9 3756. 01/01/13 D.R. Horton Inc.. 7 875%. O W 1 5/11 CP ships Ltd., 10 3758, 07/15/12 Midwesi Generation L1.C.. 8 75%, 05/01/3t BCP Cvstal Holdings COT., 9.625%. 06/15/14 Centerpoint Energy Inc , (5 85%. 06/01/15 L!G5 Curp.. 10 OWL, 06/01/12 Advanstar Communications Inc , 10.758. OW1 5/10 l!rillcorp b i t r d h c , Senior ?kite, $1 Y58. L12/01/11 Crerlit Suisse First Boston LISA Iiic., 6 127')h. 1 i/l5/: 1 Host Yllarriott LP. 9 25%. 1LV01/Oi kextel Coinmunicaiinns lnc , 7 3 7 5 8 , W01/15 Lariguarrl Iicalth Holding Co , I1 LLC. 9.0t7'%, 10/171/11 Rhodia SA. 10 25%. 06/01/10 Hutchison \Vhampoa Intcmaiional I.td.. 6.25%. 0:/24/:$ Forest Citv Enterprises Inc , 7 625%. 06/01/1 5 Plans Fx&r;ition 6r Pruduc[iun Cci , 7 125%. 06/15/14 CanWest Media Inc., 7.6258. 04/15/13 Xerox Cnrp.. Senior hcitr. 7 1255". 06/15/10 Ilariuvcr Equipnieiit Trust 01. 8 75%. 09/01/11 Peabody Eiierg) Corp., (i.R;i%. 03/15/13 Pinnacle Entettaiiimen: Iiic , 8 75%. l O / ( ~ l / l 3 El Faso Natural Gas L.. 7 62SSb. 08/01/10 I.atrar Mediii Corp , i 25%, 01/D1/1:3 Texas Genco LLC. 6 875%. 1211 5/1 t MCI Inc , T 688'x.. 05/01/09 Statmi Casinos Inc.. 6.875%, 03/01/16 Dabita Inc.. 7 25%. 03/1 5/15 RvyJ Gaming C q , 6 75% 94/17/14 r1l~itihi-Cntisolid'ire~l ltic , 8 3758, 04/01/15 Commercial Vehicle (;r~)up Inc , 8 008. 07/15/13 Rabrhcoti C o . 3.85%. 01/15/11 Stone Conimer Corp.. 8 375%, 07/01/12 Leslie's Poolinart, 7 7'5%. 02/01/13 L-3 Coininunicarions Curp , 6 125% 07/15/13 D~nge Ltrl , 4 375%. 12/:5/08 btarkwest Energy F~iriners 1.P 6.875%. 11/01/14 Milliwtn Inwnauunal Cellular SA. 10.008. 12/01/13 Nyeth. 4 375%. 03/01/0R AhlC Enrcrtiutirnmt lric . I) 8758. 02/01/12 Flextronics hiternaiional I . K . . 6.25% 1 FchoStar D1<5 Curp , 6.375%. 10/01/11 Eminis Operaring Co., 6.875%, 05/15/12 .Ielrcum ltalia Capital. 144~1. 4.958. 09/30/1+ Allied \Vasic Sorth Arrirrica lric , 6 50%. 11/15/10 PQ COT.. 7.50'6, 02/15/13 Liben? Lledia Corp.. 3.50%. 09/25/r?6 Ford Motor Credit Cu , i .3756. 02/01/11 Rite Aid Cnrp, 9.2570, 06/0:/13 Rrryovac Curp.. 7.375%. 02/171/i5 JSG Funding PLC. 7.758. 0Wl/:5 William Lvoii Homes ltic 7 6 2 5 8 , 12/15/12

ion Corp . 6.50%. 05/15/13

W H LSD 1!SD .. ELR C! 5 Ll L!SD 1!SD

L!SD USD

u m

C:Sll I:SD LSD USD

C! 5 Ll I!SD

l!SD u m .. 1JSD USD

USD CSD

c ! w

1!5D L!SD I!SD

1.405.422 227.480 203.250 200.427 190;250 183,334 174.388 166.875 165,750 162.750 159.375 155,625 155.250 152,438 151.313 148.875 143 625 134 007 126.142 122.512 118.745 118,000 11 7.974 117,168 115,500 114.500 114.500 113,625 112.898 112.500 1 12.500 112.500 11 2.071 11 1:500 109,750 109,000 108.921 108.500 108.500 108,500 107,750 107.713 107.500 107.500 107.500 106.875 106.7517 106.500 1 Oh, 500 106.070 106,000 105,750 104.375 103,250 103.230 103.000 102.500 102.250 101.612 101.500 101,500 101,000 100.093 100,000 100.1~00 9Y 987 99.790 Y9.750 99,625 99,5170 99,196 99.000 98.750 98,682 97.520 97.500 97.250 96.800 96 .m0 95,500

0 YY 0 16 0 14 t7 14 0.13 0 13 0 12 0 12 0.12 0.1 1 0.11 0.11 0.11 0.11 0.11 0.10 0 IO 0 09 0 09 0 09 0 08 0 08 0 08 0 08 0 08 0 08 0 08

0 OR 0 08 0 08 0 08 0 OR 0 08 0 08 0 08 0 08 D 08 I! 08 0 08

0 OR 0 08 0 08 0 OR d 07 17 07 0 07 (7 07 0 07 0 07 0 07 0 07 0 07 0 07 0 07 0 07

0 08

0 08

0 07 0.07 0.0; 0.07 0.07 0 07 0 07 0.07 0 07 0 07 0.07 0.07 0.177 b.h7 0 07 0.07 0 07 0.07 0 07 0.07 0.07 (7.07 0.07

1.51

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Global Tota l Return Fund -


(Cur rency - USD) 1111 securit ies a re ordinary unless otherwise s ta ted

1 00,000 l00.DOO 83.100

100.000 63.000 27,000 23.000

6.000 000 000

8 000.000 17.709 ,000.300

2.1 00.017kJ.0017 1.800.000.00L~

5Y,300:000 4,700.000 5.850.000 2.14T,S26

37,300,0170 4,000 0017 1,700,000 1.280 000 1 4017 000

1.000:000.000 25,31717,000

730,000 2.42 5.000

P00.030.000 6,750.000.000

28 .DO0 .000 370.000 480.000 470,000

4. I40,000.000 9,41717,000 1.200.(300

39 17,000 2,800.000.000

320.00D 150.000

1.500,0110.000 130,000 10U,0c)0 70.000

2,000.000 54,737 35,693 25,750 13.705

Curpurate Bonds (conii;iued) Allied \\:axe Nor:h Ainenca Inc , E. 5 75%. 02/15/11 h r x k 1 1 1 ~ 8.50%. 09/01/14 R3s Ldfan Liquified Katui-a1 Gas Cu.. L k . . 3.43796. 09/15/09 1nhlarS;ii 1;i:ldrlcc P1.C. 10 3758. 11/17/08 DlRECTV Holdings LLC. 8 37%, 03/17/13 MCI I n c , 6.908%. 05/01/07 MC1 lnc.. 8.i.35B. 05/01/14

Government Bunds Kurca .ireisur! Bond. 3.75%. 09/10/07 Repuhlic o l Singapox 4 0 0 6 . 03/01/07 Indonesia Krcapid Uurirl. 13.275'%, 12/15\13 Korea I rrasury Bond. 4 50%. 09/179/(78 (;ovemnient of Mala!-sia. :3.6.tS%, 0s/25/10 Kcpublic vf Peni. FRY, 4.708. 03/07/17 t Kingdom u l Sweden. 3 5 0 ? ~ 12/01/15 Repuhlic of S h a k i a , 4.80%, 04/14/09 Governmen[ ul' 1rirlvriesi;r. 10 00%. 07/li/:7 (;nvcmmcnt o l \4ala)-sia. 4 0328. 09/15/09 Indvrirsia Hecapid Bond. 14.2SR. 06/15/13 Korea Treasuv Bond. S 50%. 09/03/06 Korea Ircasury Bond, 6.90%. 01/16/07 Repulilic o l Slovakia. 0 00%. Ol/lS/N Fern Bond Soberano. Y.9lB. 05/05/15 Governmenr of Malqsia. 4.305lX. 02/27/09 Bosnia B Hcr:egn\ma, 0.00'&. 12/11/17 Republic ot Slox-akia, 4.90%. 0Uli/14 G ~ ~ r r 1 m ~ l r d \lalaysin. 3 135%. 12/17/07 Republic of Singapore, 2 625%. 10/01/07 Quernsliitid Treasiir) Ctirl) , h 17175, 08/:4/13 Kern Zealaiid C;uveinnieiil, 6 00%. 04/15/: 5 Korra I rrdsury R o w , 4 738. 03/12/08 Republic ol Slovakia. 5.0095. 01/22/13 Federal Republic of Gerniaiiv. 2 25%. 12/15/06 Republic uf Puldnd. 5 75X, 09/23/22 Korea Treasur). Bond, 4.75%, 03/03/07 Indonesia Recapital Bond. IS 006. 06/1 5/09 .Ihailand Gowrnnienr Bond. 8 017%. 12/08/06 Gowmment of Fi-ance. 6.03%, lLKW25 Fi-cnch Irea5ur) Notc. 2.25?6, 03/12/07 Re ublic ol l'krdine. 6 8T50h. 03/04/11 Indlonrsia Recapital Bond. 13.15%. 03/15/10 Republic ul Slovakia. 5.30%. 05/12/19 (;ovcmment ot hlalaysia. 6 S5%, 07/01/08 New South \.\:ales .Irr;auty Gorp , 6 00%. 03/01/12 Go\.ernment of Indonesia. 11 00%. 10/15/14 Gwrrrimcnr of Canada. 5.75'5. 09/P1/06 Re xhl ic of Fhilippiiics. FRY, 2 9375%. 06/01/08 +

in61miesia C;overnnient. 1 OB, 1 i/15/20 Government 01 Canada, 5 25%. 06/01/12 Gu\rrrirrierrl of Canada, 6 00% 06/01/08 Rcpuhlic of Fern. 3 875%. 02/06/15 Republic uC Slurakla. 4.90%. 02/05/:0 G N M A . 5.50%. 05/15/.33 GYhLA. SF. 5 00%. 09/15/33 GNhtA, 9'. 6 00% 05/15/33 GNYLJ,. 6 50%. 11/! 5/32

1!5A C!SA QAT GUK USA W.4 I:SA

KOK SGF ILJN KOK MYS PLK SWE 5 s IDli \1Y5 ILIh KOR KOK 555 FER MY 5 RIH 5% h i t 5 SGF AUS IiZL KOK 5ss DEL POL KOR IDA 'IiM FR4 1.M I!KR IDK jjj MY5 .4u5 IDN CAY FHL IDN CAN C:\Y PEIi 555 I:PA c:5;\ L:SA M A

I:SD LSI) LSD c :w USD L!SD 1!5D

K K W SGD IDK

K R W M Y R

SEK SKK IDR hlYR IL3R

KRW KRW SKK FEY MYR FUR SKK LlYK SLD AUD NZD K K W SKK EI.'R PI .N KRW IDR THR EL'R EUR USD IDR S K U .MYK AUD IDR CAD U5D IDR

CAD CAD L5D SKK USD LSD USD

C:jll

c j D

94.000 93.500 81,639 79,000 72.313 27,439 25.846

11,341 525

5.701.79~3 5,138,421 4.056.676 3.428.839 2,759.298 2.7 i 3.095 2,711,116 2,699,431 2,590,142 2.159.474 2,082.077 2 .044.641 1.816,493 1,801,947 1.599.814

1.403.122 1,322,833 1 -054.91 7 1,022.540 1,020.570

993,987 984.873 893,032 886.246 804.387 783.124 763.351 72s.099 602.781 583,208 496, 144 457.385 354,225 345.000 307.939 284.232 270,155 132.105 135,912 134.525 88.492 86,669 68,675 55.978 46,127 26.589 14.333

1,595,541

0 07 0.07 0 07 0 06 (1.05 0 02 0 02

i 99

4.02 3.62 2 86 2.42 1.94 1.91 191 1 YO 1.83 1 52 1 47 1 44 1.28 I 2 7 1 1 3 1 12 0.99 0 93 0.74 0.72 0.72 0 70 17.69 0 63 0 62 0.57 0 55 0 54 0 51 0.33 0 41 0 35 0.32 0.25 0.24 0.22 0.20 0 :9 0.;0 0.10 0 10 0,06 0 06 0 05 0 04 0 03 0.02 0 01

43.73

152



( C u r r e n c y - USD) A l l secu r i t i e s a re o r d i n a r y unless o the rwise s ta ted

Number ul % of

1, < i C t . . \ d u e code currency value assets shares tor Description C c l u n l ~ .I riding Markel W t

128,600.000 11,9517,000

500.000 600,00U

560.000.000 480,000

13.030 000 2 ,000.000

l1,300,C~00 310,000 100,000 90.000

200.000 100.1100 200,000 200.000 200,000 150.000 1517.000 150.000 200.000 200,000 100.000 100.000 100,000 100.000 100.000 100.000 11W,000

Securities Maturing Within One Year 1h;iilanrl Government Bund, 8.50%. 10/14/05 So!wegidn Tredsuq Ri l l . 0 00%. 12/21/05 French Treasur! R i l l . 0 00%. 07/21/05 Republic 0 1 Fhihppiiies, 0 00%. 10/03/05 Kurea Treasury h i d . 4.50%. 03/05/06 Russian Federation. 3 00%;. 0Yi 4/06 Thailand Treasui?- Rill. 0 00%. 03/0Y/06 Norwegian Treasur). Rill. 0 00%. 03/15/06 Rank 01 Thailand Bond. 0.00% 02/23/0h New Zealarid ~lreiiwry UiII. 0 00%. 06/11/06 Fortugal Treasui) Bill. 0 00% 07/22/05 Gu\ernrnent ul Caniidx 3.00% O6/01/06

THA NOR I,K4 FHL KOR KC:S THA NOR THA NZL PRT CAR

THB XOK EUR VSD KRW USL) THR NOK THB KZD FL!R C4D

:3.162.570 1.81 1,700

603,239 794,490 544.073

30Y.367 301.066 269.040 203,384 120.875 73.669

374,900

L 23 1.28 0.43 0.42 0 38 0 33 0.22 0.21 0.19 0 14 0.09 0 05

. l O l A L BONDS

.rOTAL TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGIII.ATED MARKET

I k { x i . t t m L L : StCL:Ki-riES m i . ~ L ) ~ ~ I ~ I - I - E D TO AL OFFICIAL STOCK EXCHANGE I.ISTILG UDR DEALT I l i OK A N O I I ILK KLGUIAILLI LlARKH BONDS Corporate Bonds 5afi:o Capital International SA. 134A 9 6258, 05/15/13 Riverdeep Group Ltd.. 144.4, 9.25%. 04/15/11 Central European Media Enierprises I.KI , 134A. R 2 5 8 . 05/17/12 Lighthouse Internatiunal Co . SA, 144A. 8 00%. 04/30/14 Chesapeake Energy COT , 144A. h.37SX. 06/15/15 Iti\-ens)s PLC. 1W.4. 9 875% 03/15/11 D 'nrg) Holdings Inc.. 133?1. 10.125%. 07/15/13 ALL Then) Lnergy Supplv Cu , LLC. 144.4. 8 25%. 04/15/12 Sctwknecker AG. 9,30%, 02/i1/13 Calpine COT, 144.4. 8.50'6, 07/li/!0 1elt.nt.l Curnrnunicatiun hV. 9.00% 12/15/13

Huntsman International L L C 144A. 7 5(?'!4. 0;/01/l5 G r a x t'ridecu. Escruw. 9 009~ . 12/15/09 Esselte Holdings Group AB. 144A. 7 h278. 03/1 5/11 Rugers irele less Curnniunictiliuns Inc , 7 25%. 12/15/12 Dohson Cellular S)siems Inc.. 144A. 9.875%. 11/01/12

Firiiirice S.4. 1M.4, 8 25%. 06/15/13

.I-OTAL BONDS

TOIAL ~I~KANSFEKABLE SECURITIES NOT ADMITTED TO AN OFFICIAL STOCK EXCHANGE I.ISTING NOR DEA1.T IN ON ANOl-HER REGLLATED MARKET

TOTAL 1NVESIMEK;TS

T Floaiing RAW art' irichiaied as iit June 30, 2005

LUX IRL

H M L ITA LjSA GBR

LISA us.+

EL!K EUR FUR EUR I:SD EUR LSD UhD EUR LSD EUR EUR El!R

8.369.383 5 97

81.868.365

81.868.365

263.174 263,174 261.349 250.771 206.000 180.138 170.250 168.750 160 314 157.000 137.637 124.629 122 942 ~ ~ I J : Q Q Q 109.487 108.500 106.000

57.69

57 69

0 18 0.18 0.18 0 18 0 l 't 0 13 0 12 0 12 0 11 0 11 0 10 0 0Y 0 09 0 08 0 OR 0 08 0 07

2,898.1 35 2.04

2.898.135 2.04

2,898,135 2.04

138.916.225 97 89

153

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Growth (Euro) Fund -


(Cur rency - E U R ) A l l securi t ies a re o r d i n a r y un le s s o the rwise s t a t ed

91. Llr 41arkct ne1

\ - a h assets Coun tn- Trading

curlc currcnc)

I RAMTRABLE SECURITIES AZDHITTFD TO AN OFFIC:IAL STOCK ES(:HAK~(;E Lis-riw;

Raytheon Cu. L!SA

Rucirig Cu L!FA Rolls-Royce Group FLC: GRK Rolls-Ro!ce Gruup PLC. H CRR

SHARES Aerospace 6r Ueknce

RAE 5)sienis FLC GRR 1 .900.000

1 : .000.000 6OO.LW0

1,740.094 87,1704,7OU

5.500.000

850.000 530.000

5,59!).083 800,000

7.24 1.720

1.L00.000 1,584,200 1.40O.DO0

+50.000

3.000.000 4,535,592 1,673,100

4,000 699,994

1.450,0@@ 500.000

1 ,400.000 22,000,171717

3,000.000 1.800.tJ00

10.057.926

2.617t7,000 6.000.000

7.169.000

3,2017.000 4,000.000 3.300.000 1 ..500,000

15.000 700.000

I ,~OO.L~00 900.000

7,600.000 2,100.000 9.999.800

USD GRP I:Sn GRP GRP

x D

LLR EIJR

Jm CHF GBP

CHF LUK El!R CHF

GUP EI;R UlrD J FY

KRW GRF L! 5 1)

USD CiBF C.-ZLl 5EK

GRP

LiSD l!SD

HKD

CAD LSU L:Sn DKK J FY I.3D

1!SD EL'R GHP EL!R I IKL)

61.428.376 46,740.521 32.T27.420

7.400.34 1 129.458

1,02 0.77 0.53 0.12 0.00

1+8.426.11 6 2.45

Airlines Singaptire Airlines Ltd

Aulomobiles Volkswagen AG \ ulkswaip AG. pki

30.189.Yj.t

32,087.500 15,895,000

0.50

3.53 0.26

DEL! DEU

47.982.500 0.79

Cdpilal Mdrkels Rornura Holdings Inc. L!lh AG Amescap PL.C

JPY CHE GRR

0.92 0.U7 0.59

55.3i)Y.771 71,580,790 35.703.019

142.683.380

54.894,643 51.613.236 38.668.000 38.269,574

2 36

0 91 0 85 0 64 0 63

LHE N LU DEl' CI II:

183.445,453 3 03

Commercial Banks Royal Bank of Scotland (;roup PLC Rancu Sant;mdcr Ceriml I lispmu SA Rank of Kiev. York Co.. Inc Milwbishl I'ok)o Financial Group Inc Kookmin Rank 5tandard Lharterd PLC Knokinin Bank. ADR

99 837.348 43.49h.327

28,065.300 26,311,161 2 1.897.127

39,795,070

18.a34.796

1.65 0 72 0 66 0 46 0 44 0 36 0.31

GBK ESP C S i l JFr; KOR GBR KOK

278,247,130 4.60

67,s 12,Xl I 52.033.438 48,571,055 24,841.406

Commercial Services & Supplies H k R Block hic. Rentokil Initial PLC Quebecor World Inc Secuntas AB. B

L!5A GBR C.4N SWE

1 ?.2 0.86 0.80 0.41

3.;9 192,958.600

Cornmunicalions Equipment Rri l ish Sky Rroadcasting Group PLC

Computers & Peripherals kagatc Teclindug> \ h i o r Liqi

78.S30.666 GRR 1 3 0

0.62 0 43

37,710,913 25.785.240

USA US.4

63.4Y6.153 1 05

Diversified Finanr-id1 Services Chcung Kong Holdings l:d

Diversified Telecommunication Services BCE Inc Telrfonos de hlcxicu 5.4 cle CV Xelmex). I., .ADR K I Curp., ;\DR TDC AS Nippurl .Iclcgwph k Tclt$ionie Corli C.hunghnd Telecoin Cn.. 1.1d , ADR

HKG 57,754,958 0 95

1.03 1.03 0.97 0.88 0.88 0.21

(:AN 62.602.694 62,446,762 38.636.627 53.148.342 i 3,127,733 12,397.576

302.357.534

73.440.826 66,312,000 60.929.979 40.761.000 37.754.3:3

!VlH KOR DYK

T h K I P)

5.00

Electric Utilities LYI L Lricrg! Cu F OK A(; hatiunal Grid .I r i w w P1.C Fnilesa SA Hong Kong Electric I lddirigs Ltd

L!SA DEI; GUK ESP HKG

111 1.10 101 0.67 0 62

279,198,2: 8 4.61

154

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton G r o w t h (Euro) Fund -


(Cur rency - E U R ) A l l s ecu r i t i e s a r c ordinal-)i unless o the rwise s t a t e d

Electronic Equipment & Instruments I k c h i LKI

Energy Equipment 6r Services

Food & Staples Retailing Wil.iam Morrison Supermarkets PLC Ki-oger Co .

Nohlc C n l p

11.999.400

1,000.000

20.226.087 3,000.DUO

500.000 1 .io0.000 1,700,000 i.iO0.000

7.T00.000

3.4W410

1,500.000 8.047.71717 1,350.000

350.000

1,900,17170 18,0U0,000

2,500.0D0 1,650.000

1,000.000 3.3OO.000

2.400.000 1 .000.00(! 1.00@,000

700.000 l.U00,000

296.340

3.w0.000 2,800.000

120,900

2,200,000 565.000

6.075.600 6.000.000 5,500,000 2,600.000 5.63 1,451 2,023,110 3.000.000

948,100

1 FY

U5D

CiRF L! 5 13

CHF EC!R C! 5 1) G5F

I 3 l j

J PY

IJSD USD LSD LSD

EUR GBP

EUR J PY

El!R GUP

60.303.080 1 00

50.834.939 0 84

0 92 0 78

77.698.537 47,182,030

102,880.567 1 T O

Food Products Nesdc SA 1;nilever N\; H.J. Hein; Co. C.atlhury Schneppes PLC

105,740.209 Y1.205 000 49.763 860 43401.913

1 7 5 1.5: 0.82 17.72

2917.1 10.982 4.80

Oil & Gas El Paso Corp

Health Care Equiprnenr 6r Supplies Olympus Corp.

Health Care Probiders & Services AmerisourccBerqen COT. Tenel Heahtic& Corp HCA Inc. LIGNA Corp

73.309.+21 1 2 1

55,576,923 0.92

85,723,427 81,408.jOj 63,227,144 30.959,230

I .+2 135 1.03 0.31

261.3 18,406 3.32

Hotels, Restaurants & Leisure Accx SA Coinpass Group FLC

73,663,000 62.493.424

1.22 1.03

336.156.423 2 25

Household Durable5 Koninklijke Fhilips Electronics W Sun! Corp

52,250.000 46.996.701

0 86 0 78

99.246.701 1 64

Industrial Conglomerates Siemens AG Smiths Group PLC

60,400.000 44,900.2 15

1 00 0 74

105.300,215 1 71

Insurance M'illis Group Holdings l . td h i s s Reinsurance Co. American Inrcrnalional Group l r~c .\L Lrpital Ltd., A ACE Ltd

64,899.466 50 806 881 48.01 6.745 43 053 086

1 .a7 0.84 (7.80 0.71 0.61

U5D CHF I!SD

(!SA CI IE

UXlU 5411:

USL1 I!SD 37,066,282

243.842.460 4 03

lnternet Software & Service5 Check Point Softw3rc Tcclinologies I d

11 Services Electronic Data Svstcnis Corp Cadence Design <ysrems Inc Acccnture Ltd.. A

ISR I!SD 4.849.222

U5D IJSD 1 S D

55,682,069 31.610.059 2,265,137

17 92 0 52 0.04

89.557.265 1.48

Leisure Equi men1 & Products Fuji Photo Fifn Co Ltd hIri.cndo Cu Ltd

58,561,335 48,868,218

0 97 0 81

JFY J P S

J FY J PI'

107,429,553 1 78

Media Lews Corp.. Lid , A DlKEC-1-V Group Inc Reed Elsevier hV VNU NV Pearsoii FLC Wolrers Kluwer NV Iiiwrpuhlic Group o l Cu; . lric Time Warner Inc.

81 242,686 76.859.850 63,360,000 59.982,000 34.819.496 32.005.600 30.198.483 13.093.242

1 34 1 2 7 1.175 0.99 0.90 0.53 0.50 0.22

c: 5 13 USD EI!R tL!K GRP E L R u5n L!SD

311,561,337

1.55

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Growth (Euro) Fund -


(Currency - E U R ) A l l securi t ies a re o rd ina ry unless otherwise s ta ted

humber uf ?u of shares or Description Country Tratling Markci rrel

face value code cui-renc!- \-slue assets

Metals 6r Mining Rarric k Gold Cnrp

Office Electronics Konica Minvlki I liddiag~ Llil

C A N

JFY

GBR GRR ITA FRA w

FIN M F I:9h FIN 1?SA

GnK

u 5.4 I.!% 1!SA

J PN FR4 USA CHE GRR

HKG

KOR

L!5A

I:SA

GBR JPk KOR KOR

CALI

J FY

GBP GRP FUR ELR EC'R

FI!R ZAR I!SD H.! K l!SD

GnP L:SD I S D LSD J PY ELR I:SD CHF GRP

HKD

KRW

M D

USD

GRP J PY I!SD KRW

E1!R EUK

AU D

55.735.286 0 92 2.;00,000

5.00o.u0i)

15.435.5Pi 12.500.000 3.000.000

300,000 2 ..t00,000

3.300.17017 5.620.000 2,L700.000 3.4017 ,000 1.300.000

5.750.0011 3.000.01)o .3.100.i)00 3.300.000 1 ,500,1700

900.300 1 ,400.0170 1.25o,oo0 1,3017.000

3,800,0017

85.548

3,800.000

71 3.400

40.00L1000 1 5,1700

1.500.000 170.090

$3,100,000 35,0017,000

13.000.000

38.623.340 a.61

Oil 6r Gas 5trell Iranspun 8 Trading Co.. P1.C BF FLC Eni 5pA Total SA, l? Kepsol YPF 5.4

124,034.344 107.523.927 639317,000 58.290.000 50.784.000

404.562.271

2.05 1.78 1 .Oh 0.Yh 0 84

6 bY

i2.30i.000 51 467 732 49,934,109 +6.508.000 34,777,843

h p r r br Forest Products I:FSf-Kyiiiniene Corp. slppi I.td InternaLional Paper Cu. 5ton Enso OYJ. R Bowawr Inc

0 86 0 85 0 8.3 0 77 0.57

234.992,684 3.88

Pharmaceuticals GlaxoSmiihKline FLC Mcrck Ez (10.. Inc

115.01 1,738 76.363.980 70.659.822 68,127.579 61,714,007 61,110.000 56,706,030 4Y.203.047 12,685,233

571,.381.446

1.90 I .?6 1.:7 1 . 2 1.02 1.01 0.94 0.81 0.21

Pl ixr lric Rrisic>l-\fycrs Squihl> Cn Takcda Phaimaceutical Co.. Ltd. S a r d - A i e n u s Abbott Laboratoiies huiartis AG Shire Fhai-inaceuticals Group PLC

9.44

27.7W.613 0.46 Redl E5ldle %ii-e Pacific Ltd.. '4

Semiconductors &I Semiconductor Equipmenl 5;irn;ung Elcc1rurilLa Cv.. hd .

Software R\lC S~ft\vare Iiic

Specially Rrldil

Wireless Telecommunicdliun Services Vdalorw Group P1.C KDDl Corp. SK Telecrrin CL~. . L L ~ . . ADR >K Telecoin Cu.. Lkl

Office Depot Inc.

33.761.591 0 56

56.372.154 0 93

13.466.223 0 22

81).541,158 57,375,792 25.289.3;O 24,7 17,606

133 0.95. 0 42 0 41

187,923,926 3 . : 1

TOTAL SHARES

BONDS Government Rands Federal Rt.public o f Gcriiiaiiy. 4.508. 88/18/06 Federal Republic of Gerrn;iny, 5.1?0%, 07/174/11

5.522,171.711 91.27

DEI' DEL:

44.296.025 39.533.900

0.73 0 65

1 38 83.829.925

Securities hlalurin& Within One Year UCM Souih \Vales Trcasu? Corp.. 6.50%. 05/01/06

TOTAL BONDS

TOTAL TRANSFERABLE SECURll-lES ADMITTED TO AN OFFICIAI. STOCK EXCHANGE LISTING

A1!S 14.608.558 0.24

98,438,483 1 .h2

92.89 5.620.61D.lY4

156

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton G r o w t h (Euro) Fund -


(Cur rency - E U R ) Al l s ecu r i t i e s a re o r d i n a r y un le s s o the rwise s ta ted

Nuinher or shares or Des;ription

lace value Countr) Trading

codc currcncy

6.986.000

20o,u00,000

TMKSFER4LILL SECC!KllltS L)I.ALI IN OU AliOTHFR RFGUIATFD M.4RKFT SHARES Commercial Banks Bank of Communications. Reg I;

TOTAL SHARES

BONDS Securities Maturing Within One Year Drcsdncr Bank A(;, 1.93% 07AWOi

TOTAL BONDS

I O l A L IRANSFEKABLE SECURl.llES DEALT IN ON ANOTHER REGWATED MARKEI

TOTAL INVESTMENTS

CHX

DFL

HKD

FUR

L.080.++2

2,080.342

zoO.OOO.OOO

200,000,0017

202,080.3+2

5,822,690,536

0.03

0.173

3.31

3.31

3.34

96.23

157

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Japan Fund -


(Cur rency - USD) Al l secu r i t i e s a re o rd ina ry unless o the rwise s ta ted

Lountrl, Trading code currency

23.000 6.000

25,000 13.200 10.Y00

-37.00c1 22,000 94,0017

28.000 3 ; .00(1

03,000 26,000

18.000 35.000 37.t7t30 18,500 54,000 26.000 35,000 40.0013 z0.000

135.000 96 48 36

f2.l)OO $3.000 21.000 28,UOi) 19.000 L5.000 23.000

25.000 18Y

11 .000 s.OOO 7.700

4il.000

5,mo 35.000

26.000

0 19 (3.16

0 35 183.383

Auto Components Rnclgcstox COT K O K Coqi Smiiley Elecmic Cu . Lul

JPR

J PK I P h

381.550 39T.149 177.012

0.92 0.75 0.34

1.055.711 2.01

Automohiles Tovuta Motu: Curp. Hiinda \loror Co , 1 . d Yissan Motor Lo.. Ltd.

1 FK JFL J Ph

1.325.24$ 1.085.709

931 .la0

2.53 2.07 1.77

3.342.133 6.37

Bcvcrages liu i r i 1.~~1. Kiriii Brewen- Co.. Ltd

1.437.387 300,3T9

2.74 0 57

J P S JPY

1,737,766 3 31

1 4 3 0.22

Capital Markeis Nomura Holdings Inc Nikko Curdial Curp

754,250 114,471

868,721 1 6 5

Chemicals Shin-Lt5u Chmiicdl Cu . Lid Uairiippon Screen \lanul,il,iuring Co , Ltd. Torav Industries lnc Kurivay CO.. ~ . t d Damppun Ink and Chemicals Inc Sumiionio Bakelite CL> , Ltd Asahi Kasei Corp. Tosoh Coip Kippun Stiubukai Co , 1 . d

683,688 233.88 1 175386 175.41Y 172,952 168.423 166.727 166.366 163.479

1 30 0 45 0 34 0 33 I3 33 0 32 (3 32 0 32 0 31

4.02 2.108.521

Commercial Uanks Shinsci Rank I.ld Mizuhu Financial Group Inc. juniiturnu Mitsui Financial Group Inc. Hilsuhishi Tokyo Financial Group lnc The Rank of I-ukuoki Lrl Rmk or Yokohama Lid. The Furup3 Bank Ltd. Gunma Bmk Ltrl. Fhizuoka Rank Ltd 1 ht. Surni:nmo Tmst k Banking Co . Ltd. Chiba lkink L ~ r l .

JPY JFY JPY JPN J F N JIJY JPN J Ph J FK J P h I Ph

782.299 434.789 324.792 305.630 248,Y53 248.674 171.274 168,495 163,362 152,246 151,687

1 4 9 0.83 0 62 0.58 0.47 0.47 0.33 0.32 0.31 0.29 0.29

3.152.201 6.00

400.578 233.607 177 J46 172.140 103.926

0.76 0 44 0 34 0 33 0.?d

Commercial Services & Supplics (;lory Ltd. Chintai Jutaku Ycw5 Cu.. Ltrl Dai Kippon Frinrinlg (yo, Ltd. 5ecom Co . 1.rd Kokuyo Co., Ltd

JFL JPN JFN JFN JFY

1,087,597 2 07

Computcrs & Pcriphcrals Fu;itsu Ltd

Consmuction k Engineering Tokyo Electron Ltd. Shirnia i Corp

257.290

263,796 205.233

0.41)

0.51 0.39

470.02Y 0 90

Consiruction Maierials Sumilonio Osaka Cement Cu.. Ltd JPN 69.199 0 13

158

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton J a p a n Fund -


(Cur rency - USD) Al l securi t ies a re o r d i n a r y un le s s o the rwise s t a t ed

Lumber of shares or Iksi-ripniit i

race value

x or Count) Trading Market net

mde currency \ alue asscis

Consumer Finance l ~ a k c h ] ~ Curp Bconi Co.. L.td

4.700 3.000

24.000

121

31.800 16.700 18.300

5,900 17.000 32,000 64.000

8.000 17.000

49.000 156.000

2.600 7.000

27.000 53.000 56.000 22.8170

3.300

42,OOO l(3.000 14.300 15,500 5,000 3,800

27.400 26.400 8,900 9.000

13.000

1 6 1,000

94,000

38.000 42,000 62,000 9.700

40,71717 10,300

3.000 3.000

46,000

0.60 0.49

3 18.026 256,586

57S.612

JFY J FY JPN JI’U

1 09

Distrihutors Mitsui Sr Co . Ltd

Diversified Telecommunication Services hippun 1~elcgr;iph k ~It.lcphune Corp

Electric Utilities Kansai Elcctnc Ponw Cu . Inc Tokyo Elcctnc Fon-er (10 , Inc Kyushu Electric Power Lo.. hi-

J FN

J P S

227.357 0.43

518.510 0 YY

JFN JFR JFN

639.787 398.5 1 6 397.898

122 0 . i 6 0 76

1,436,201 2 74

Electrical Equipment Enescne Corp. Sumitorno ElcLtric lndus~ric5 Ltd hiitsubishi Electnc Coq3. Mitsubishi H e a y Industrics L t d hlatsushita Elecinc Works I.id FurJkawa Eltxiric Cu.. Ltrl.

0 33 17 33 0 32 0 32 0 13 0 13

176.191 174.233 169,758 167.448 66.69 1 65.951

820.272 1.56

Electronic Equipment & Instruments Canon Inc Tosiiba Gorp Keycnce Corp Kycera Corp. !vlatsushita Elecinc Industrial Co , I.ld I Iitachi Ltd NFC Corp Citizen Waich Co.. [..id Murata Manulacturing Lo.. Ltd

JFX J P N JPN JFN J P N JPY JFN JFN J P N

2.381.739 622,086

535.547 409 (369 322 284 303.140 206,527 168 216

583 147

4 92 119 1 1 1 1,02 0 78 0.61 0 78 0 39 0 32

5.732.653 10 92

Food & Staples Hcvailing Seven Eleven lapan Co., Ltd. 0;eki C:L> , Ltd Fani i lym~rt Co., Lid Nijsin Healthcare Food Sen-ice Co.. Ltd.

Matsumotokiyoshi Co , Ltd Ito-Yokado CO.. Ltd.

1,167,088 731.396 310.267 248,218 166.003 103.537

L I1 101 0.78 0 47 0.32 0 20

2,626,711

Food Products Hokuto COT. Q.sai Lo., Ltd. Ariakc Japan Co. Ajinumoto Lo.. Inc Meiji Seikd Kaisha Ltd

542.611 273,908 204,755 100.280 64.155

J P N J PN J FN JPY Jh

1 04 0 52 0 39 0 19 0 1.2

I 2 6 1.185.709

Oil & Gas Osaka Gas Cu.. Ltd

Health Care Equipment 6r Supplies Tcrumo Corp.

Household Durahles Sun) Curp 5ha-p Corp. Victor Co. or ].ipari Lttl Rinnai (1oq7.

J Ph 506.938 0.97

2.713.822 5 17 JFN

1.309.636 657.055 428.473 239,350

2 $9 1 2 5 0 82 0 46

2 634 511 5 02

Household Products Sunrga Co . Ltd Mandoin C~>rp KAO Corp Shiwido Co , Ltd

1,006,117 327.463 70.778 63.154

1.92 1 .D0 (7.14 0 12

JPN JFY JPN j FX

1.667.512 3 18

Internet & Catalog Retail Sisscri Cu Ltd J Pk J F\i 567.322

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton J a p a n Fund -


(Currency - USD) A l l s ecu r i t i e s a re o rd ina ry un le s s o the rwise st.ated

Number ~ i l shart.5 or Dcsciiption

Sace \-aluc Country 1 radirig

code currcnc)

IT Services STT Data Gorp. lomura Rewarch Institute Ltd hct One S ~ w c m s CU.. ~ t d . 11nchu Techno-Pciencc Corp

52 1.700

31) 2.000

8.000 l(i.17017 33.000 13.171717 10.50cl

3.000

25.000 65.000 12.i00 30.m7 WO

37.ll00

6,0017

105

86,170ll

19,000

28.000 24.1 DO

52.400 20.000 14,000

25.000 17

39 43

18.000 8.200 8,4017

900

3 3,1017 21D

18.61717 1 .OPO

12 500

I Ph JPK JFli 1 Ph

JFN J PU JPN J P S J P h J P N

I Ph J FK 1 Pli JPY; JPh JFY

JPU

J F S

J Pli

J Ph

JPN ]PN

JPN

K 1 PN JFY

]P!i j PK

177.806 169.939 100.6 3 1 70.191

0 34 0.33 0 19 0 13

518.567 0.99

Leisure Equipment & Products Nlrltcnrlu C.U.. 1 . l d FUJI Photo Film Co . L:d Yarrr;lha Corp Bandai Co., Ltd. Koci Cu.. Ltd. Sega Sammy Holdings Inc.

837.233 51 5.337 515.067 262.721 239.196 i n 4 . 0 ~

1.51) 0.98 0.98 0.30 0.36 0.39

4.86 2,553,613

386,368 349.080 249,99 1 2 3 3,038 98.250 68.269

Machinery Kuriia \i'atcr hidustries Ltd NSK Ltd. 1 t l K CO.. I . l d Koma:m Ltd. 5MC Cnrp Ishika\valirna-l lxirna I I t w ) Iriduvries Co , h d .

0 73 0 66

0 44 0,19 0 13

o,+n

1.384.996 2.64

36.337 Marine Kaiiiigumi Co , Lrd

Media Dentsu lnc

Metals &t Mining Nippun Light Metal Cu.. L:d

Multi-Line Retail .1akashirnaya Cn , I.ld

Oil & Gas IorirnGencral 5ekl)u K.K S h u w Shell Sckiyu K . K

0.09

U.49 259,563

204.060 0 39

170.218 0 32

0 58 0 46

534,488 1 04

4 95 1 30 0 81

Pharmacculicals Takeda Pharmaceutical Co , Ltd Astellas Pharmaceutical Inc. Sawai Pharmar-ruiical Co., 11d

2,600.l-t3

423.1 32 683.869

3.707.143 7.06

492,828 69,785

0.94 0.13

Real Estate hrs t Iulten Co . I.ld. U i T Ihh3ii Development Corp

1.07 562.613

251,983 147.420

Road 6r Rail East Japan Railvia\ Cu. \Vrsi Japan Railv,r& Cn

0 48 0.28

3YY.405

1,137.640 369.902 237,207 66,501

2.41 1.250

Semiconductors & Semiconductor Equipment Rohm Co.. 1.rd UEC Electronics Corp. Lascncc Corp A i l ~ ~ ~ n r t . s t Coil)

JFN JPN JPY J FN

3.31 0.70 0.45 0.;3

3.79

1 ,042.2 :4 545.651 501.750 68.889

Speckally Reiail 1;nitc.d .4rrow5 Lr l Kyutu Kirnuno Y u x n Cn , I.ld Komen Co . Ltd u5s co.. 1.111

1.98 1 04 0 96 0 13

4 11 2.158.504

.lrading Companies &z Distributors Mirsuhishi Corp. 0.32 170.065

1 hO

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Japan Fund -


(Cur rency - USD) A l l secu r i t i e s a re o r d i n a r y un le s s o the rwise s ta ted

~:ountl). Trading cudc iurrency

% 111

Market ner value asw1s

Wireless Telecurnmiinicaricm Services 77b hTT DuCohlo Inc

TOTAL SHARES

TOTAL TRANSFEKAULE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING

TOrAL INVESI~MENTS

J F N J PI 1,148.1 78 2 19

51,783.512 98 63

51,783.512 98 63

51,783,512 Y8 63

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Korea Fund -


(Cur rency - USD) A l l securit ies a re o rd ina ry unless o the rwise s t a t e d

C o u n t y ~lrading code currcnc)

TRANSFERABLE 5ECL'KIIIE5 .-2L)hlll~lEL) .IO AN Ot;I~ICIL4L 9 O C K ENCHAhGE LISIILG SHAKES Automobiles Kia Morors COT K O R K R W 106.190

263.996 33.270

79,620 77.190 46.3717

2 17,000 60.300

57.8517

18.210

58,000 5.320

319,129 240.680

88.910

LO.t.010

1,083,953 21 5,100 155.929

95,500

380.863 130.160

71.690

16,290

9 3,010

5.290

856,320

24.910

1.41 1.419 1.68

Beverages Kook Soon Dang Co , Lid Hitc Brew?- Lu.. Ltd

K O R K R W K O R K R 1\/

3.559.927 2,868,713

't 24 3.41

6.428.640 7 65

3.46 2 25 1.14

Chemicals LG C:hem Ltd. 1.G f'etror~hcrnical Co , Lid. Samsung Fine Chemicals Cu.. Ltd

KOK KKW K O R KRlV KOR KHM'

2,909,266 1.887.779

959,225

S.756.270 h 85

Commercial Banks Shinhan I~inar ic i i l Grrrup Co.. l.td Hand Bank

K O R KRVV KOK KKM'

5.642.629 1.614.606

6.72 1.92

7,257.235 8.64

1.358.8i4 1.62 Construction & tngincrring Hpndai Dewlopmcnt Co.

Consumer Finance I G C.aril C.1) , I .id

K O R K R W

K O R K R W

K O R K R W K O R K R W

605,533 0.72

Diversified Financial Services

Kong {him Holdings (.o , Ltd LG Lorp 1,474,529

482.888 1 7 6 0.57

1.957.41 7 2.33

Electronic Equipmeni Q Instruments hitelligent Digital Integrated Sccuiity Co , Ltd Jahwa Electronics Cu., Ltd

K R W K R W

K O R K O R

3,670,986 1.889.146

4 37 2 25

5,560.132 6.62

7 88 Food Products CJ Corp.

Hotels, Restaurants & Leisure

Household Durahlcs Haatz Inc Hansscm Cu . Ltrl. iRcLn Inc

KarlgMon land Inc.

K R W

K R W

KR\V KKW K R W

6,617.757 K O R

KOR 2.918.654 3.48

3,263,909 1,282,906

871 -213

3.88 1.53 1.04

K O R K O K K O R

6.45 5.418.028

3.784.920 Household Products 1.G Household h; Health Care Ltd

Machincry Samsung Ilea\ y Inilus~rics Ccr.. Ltd. Daewoo Shipbuilding C;r Marine Engineering Co., 1.1~1

K R W

KR\V K K W

K O R 4.51

KOR K O R

3.546.265 2.397.512

4 22 2 98

(i.043.77; 7.20

4,920,242 5.86 Media Daek)o CO . L d

Metals Q Mining POSCO

Oil & Gas I;K Corp.

Semiconductors & Semiconductor Equipmeni Samsung klectro;irrs Co , I rd

Textiles, Apparel 6r Luxury Goods Y uurigi.~nt. Corp.

Wireless Telecommunication Services S K Telecum Cu . Isd

IOIAL SHARES

KR\V

K R W

K R W

K R W

KRlV

K R W

K V R

K O K

K O R

KC)R

K O R

K O R

2,873.780 3.42

4,926.968

2,526.109 3.01

2,643.700 3.15

5.22 4.382,426

77.392.881 92 16

92 16 TOTAL TKANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE 1-ISTING 77.392.881

77,392,881 92 16 IOTAI. INVESTMENTS

162

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Lat in A m e r i c a Fund -


(Cur rency - USD) A l l securi t ies a re o rd ina ry un le s s o the rwise s ta ted

Count l? Trading iurlc currmcy

Aerospace & Defence Fin:,rxr-Fmpresa B u s de Aerunauuca 5'4

Beverages Fonicnic Fconomico \lexicano SA de CV (1,cmsa). ..\L)R Em3otelladoras Arc3 SA Cia de Bebidas da5 Americas (ArnBev). .4DR. pfd Em:mtelladrrra Andina SA, p k . . A

1,561,800

255.1706 3,582.933

166.600 1,394.557

290.200 147.100 161,400 298.300

5.57+.000

i26.923

450.034

201,741.000 231,104,431

5.535

4.503.200

628.000 4. I12.7OO 3,273,700 2.189,OOO

412.973

844,000 1 ,*72.700 1,286,658

101.303

3,780,700

68S,b20 270,600 245.8+0

453.548

2 ,.t 1 5 L.30 1,562,399

575,700

4.15 BRA BRL 9.7.31.550

MEX LAD 15.lYh.i)hY ML?. MXh 7.664.259 RR.4 LSD 5.147.940 CHL CLP 2.020.667

6 48 3 27 2.20 1 2 i

30.028.033 1.3 20

Commercial Banks Uriibaricu Lniiu de Raricus Rradleiros S.4. GDR RR.4 L!SD 11.207.524

2.925.819 2,897.1 30 1,209.835

4.78 12.5 1 2 3 8.52

Ci-edicorp Ltd. Rdnco Ii~lincilrrirriciinU rlt. Lxporlaciunes SA. E Rancolombia SA

PER P,ZL COL

USD L!5D COI'

18.240.308 7.78

4.11 Coniainets & Packaging KLibin 5.4, pfd

Diversified Financial Services Rradcspar 5.A. pftl.

Diversified Telecommunication Services Telefonos de Mexico SA de (3' ( T e h F x ) . I.. A D H

Electric Utilities Cia Energerica I k Mirids Gcrais Cemig AE5 Tiete SA

9,626,407 ll KL

RRI 9.088.773 3.88

3.6.3 MEX USD 8,501,142

5.16Y.964 3,763.432

2 21 1 60

BRA RR%

BRL BRL

8.933.396 3 81

Energy Equipmenr 6r Services Tcnaris 5.4

Food & Staples Retailing Curilrolarlora Cornercial klexicana 5.4

AKG '4RS 43.357 i) 02

MFS MXN 5.446.997 2.32

Food Producrs Perdigao SA. pfd Gmpo Bimbo SA de CY, A Gruma 5..\ Sadia SA, pfd Rlolirios Kio de la Plata S.%. R

R R L MXN MXN BFX

6 37 5 Ob 3 23 1 82 0 24

14,936362 11.843.704 7,571,532 4.268.24S

562.346

39.181.989

AKG

l b 72

Industrial Conghmeralcs Alfa 5.4 Grupu M S A , SA de CV ()uincnco SA Quiiienco SA, ADR

.VEX

.LIE>; CHI. CHL

hlXN l lXN CLP L!SD

4,800.532 3,215.867 1,496,543 1,195375

2.05 1.37 0.64 0.51

4 57 10,708.317

Machinery Marcupolo SA, pld

Meldls 6r Mining Metalurgica Gerdau SA, pfd Cid Vale du Kiv 1)uct.. A. .4DR, pfd Usinas Sidemi-gicas de !dinas Germ SA, pld

BRA BRL 7.697.875 3 28

8 876,186 6.873.240 4,013,929

BRA HKr\ BR4

RRI.. USD RRI.

3 79 2.93 1.71

19,763.355 8 43

Oil & Gas Perro1t.o 1~r;isilciru 5.4, .4DR, pfd

Paper 6r Forest Products Kiinhcrly Clark dt. Llexicu SA de CV. A Suzano Bahia SUI Fapcl e Celuluse A. 5.4, pfd

20.881.370 8.91 BRA lJSD

3 54 2.77

\,lE?i R RA

MXIi HUL

8.289.412 6.494.652

13,784.06+ 6 31

Real Esiart. L!rhi. Desairollns L!rbanos. SA de CV 3.168.426 MXN 1 35

163

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Latin America Fund -


(Cur rency - USD) Al l securi t ies a re ordinary unless otherwise s ta ted

Cuuntr). Trading code currcncy

x Markc: net

val tic asscis

224 300

99,600

1,246.000

48 100 000

884 000

.lobawo Souza C r x SA

Wireless Telecommunication Services A i n c n ( ~ M17\11 Si\ de (3'. 1, 11DR

.I'OIAL SHARES

.IOlAL .lKANSFERARl.E SECCRITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LlSl-lNG

TRANSFERARLE SECURITIES DE.4LI Ih Oh ANOTHER RFGI.'IATFD MARKET SHARES Diversified Financial Services I.ocaliza Rem a Car SA

Electric Utilities AES .Iietc 5.4

Metals & hlining Carmi Mirirriicao t' blvlerhrgia SA. pld

.l-OIAL SHAKES

.l-OlAL .IMNSFERARl.E SECURITIES DEALT IN ON ANOTHER REGULATED MARKEI

TOTAL INVESTMENTS

HM B tu 2.739.081 1.17

2.53

RRA

BRA

HlLl

225,410,476 96.17

225.4!0.376

RRI 6,727,920

R R L 783.287

R K L 833.426

8.344 633

8.344.6.3.3

233,755,109

96.17

2 87

0 33

0.36

3.56

3 56

99.73

164

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Thailand Fund -

SCHEDULE OF INVESTMENTS AS OF JUNE 30,2005 (Cur rency - USD)

A l l secu r i t i e s a r e o rd ina ry unless o the rwise s t a t ed

TRAUSFERARI .E SECURITIE ;\L)MI I ILL) 10 ,-2h OFFICIAL b l i X : K EXCHAU(;E LISTILL SHARES Airlines Th:i .4irways Inttmiii t iclrid Public Co . Ltcl . Igii

Auto Components Aapico Hitech Fuhlic Cn.. I.id , fgri Th,ii Suoragc K,itter) Public Co . Ltd

THA

THA THA

5.1 38.800

Y44.000 478.400

4.T13.200 2.066.660 4.379 .Wt7

44,065 .000

30.626.000

2,562.800

44Y ,800 338,YOO

7.150.YOO 2.774.400

99 1.800

353.300

6.289.500 3.436.800

3.757.400

7.61$,200 383,900

441,400

7,987,170 6.226.400

2,285.111

1,52T,300 461) ,300 152.900

16,102.63tJ 2,469,200

426.300

TH B 5.237.607 5.94

THB I I i B

781.242 642,497

0 88 il 73

1,423,739 1.61

Commercial Banks Kasikomhaiik Fuhlic Cu , I.td , fgti LIangkuk Bank Public Co.. Ltd , fgii. Sidiri Commercial bank Public Co . Ltd . lgii ThlB Bank Puhlic Cn., Ltd . fp.

THR 6,500,906 THB 5.401.071 T ti 1% 4,980,920 THB 4.371.835

7.36 6.12 5.64 4.95

THA -1ti.4 THA TH.4

21,254,802 2 1 07

Computers & Peripherals Cal-Conip Electronics (Thailand) Fuhlic (3.. Lid

Construction & Engineering Italian-Thai Developmenl F1.C. rgri

Construction Materials Slam Cement Public Co.. L t d . Ign Slain City Cement Public Co , Lid . lgr1

2 R7 THA

THII

THB 2,534,566

593,353 0.67 THR

THA THA

I t-IU THB

2,634,038 2,279,835

2.3Y 2.58

4.913.873 5.57

Diversified Financial Services Xational Finance Public Co . Lul.. rgt1, Tisco Finance Kiainakin Finance Public Co . Ltd . Ign

THA THA -r i iA

THR THR I I I B

2,214.919 1.711.971

6bL 400

2.51 1.94 l! 75

5.20 4,589,290

Electric Utilities Electricit)- Generating Public Cn.. Ltd.. rgii

Electronic Equipment 6r Instruments Uclta Llectronics (Thailand) Public Co.. L:d Haiia Microelectronics (3 , Lid . fgn.

0.78 688.219 THA THB

3 09 1 96

THA THA

THB TH R

2.724.309 1,729.835

4.454.144 5 05

1 86

0 84 0.33

Food Products .Thai Union Frozen Products 1 . d , Ign

Hotels, Restaurants 6r Leisure Mmor Inteiiiatinnal Public Co.. L. td Dusit ' T t w Public CU , Ltd., fgn.

THA THR 2.523.118

THA THA

I I111 THB

737,007 399.460

1.29 1.136.467

Household h r d b k s kaniy b'ood Industnes Fuhlic Co . I.ld

Media BkC World Fuhlic Cn , Ltd , G4LM Grammy Public Co , Ltd

THA TH R 56.076 I) 06

2.242 .0 1 3 1.898.430

THA THA

.I I IU THB

2.54 2.15

4,140,443 4 69

Multi-line Retail %ai3 Makrn Public Co , L d , fgn

Oil 67 Gas P I 1 Public ( 1 0 . Ltd , fgn PTT Expluration Gr Pruduction Fuhlic Co , Lid , f g l Thai Oil F u l h CU , Lul. rgr1

3.400.898 3.85 .I1 L-2 THB

9.21 4.94 0 27

8.1 31.349 4,360,828

239,016

I I I A TH.\ THA

THE THR THB

12.731.193 14SL

k d l Estate Iand and Ilousc Public Co.. Ltd.. fgii Amata Corp Fuhlic Co. I.id., rgn

3.09 0 79

THA .IH.l

1'1 i U THB

THB

2.727.608 693.109

3.88 3,420,717

Transportation Infrastructure Airports ol Thailand F1.C 0.53 467.724

165

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton Thailand Fund -


(Currency - USD) A l l securi t ies arc ordinary unless otherwise s t a t e d

5,0678,220 1,469,800

390.LJ7t

l.LO9.303

\Irireles5 Telecommunication Services Shin Cvrp Puhlu Co.. Lid , Igri Adwnced Inln Scnicc Fublic ( :o , Ltd . fgn Tot31 Access Communication Public Co.. I t d

5 21 :3 YY 1.41

.IOTAL SHARES

RIGHTS Diversified .Ickcommunicalion Services Triie Coip Fublic Co.. Ltd . righ:~ , 0 00%, 03/28/08

. l O l A L RIGHTS

TOTAL ~IKANSFEKAB1.E SECURITIES ADMITTED .IO AN OFFICIAI. STOCK EXCHANGE LISTING

TOTAL INVESTMENTS

9,368,467 10.61

82.946.452 93.95

THR 0 0 00

0 0.00

82,946.452 93 95

93 95

166

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton U.S. Dollar Liquid Reserve Fund -


(Cur rency - USD) All securi t ies a rc o rd ina ry un le s s o the rwise s t a t ed

S.700.000 5,000,0017 3.890.000 3,075,000 3,000,000 3.000.000 2.866,000 2,500,000 2.500.000 2,23o,g00 2.180.000 2.000.000 2.000.000 2.0017,000 1.820.000 1.705.000 1 .~7"5.000 1,500,000 1.300.000 1.290.000 1.277,000 1.228,000 1,110.000 1.000.000 1 ,000.000 1.000.000

900.000 900,000 800.000 640.000 600.000 600.000 500.000 500,000 450,000 445,000 391,000 285.000 230.000 200.000 180.000 100.000 55,000

TIUNSFELV3LF SECI.'RITIFS DF1. I I \ O h A N O I H E R KEGL'L%IED R O W S Securities Maturing Within One Year I~IiL.L1C. 0 00%. 07/05/05 FNMA, 0.00%. 11/02/05 FHLMC. 0 O0'b. 01/10/0h FliLB, 0.00%, 07/20/05 Royal Rank of Scorland PLC, 0 DO%,. 07/15/05 HB0S Treasur). Services. 0 00%. 08/1 7/05 FHL.LIC. 0 00%. 08/02/05 Rank o l Amcricii. 0 00%. 07/05/05 Westpac Capital Cnrp , 0 00%. 08/22/05 FkCLI. 0 00%. 10/31/05 Citlgroup C;lobal Markers H d d i r i g ~ lric . 0 00%. 07/19/~15 General Llccrric Capital Coip , 0 00%. 08/(71/Oi Sve:iska Handclsbanken lric , 0 00% 08iO3/Uj FFCR. 0 00%. 01/13/06 Citigroup Global Markets Hnldint!s in( ., 0,00?a. 07/13/05 FNMA. h.OO?o. 07/06/05 FHLMC. 0.00%. 12/13/05 Dtph Rank PLC, 0 008, 08/10/05 Lhnskc Corn.. 17 ODL%. 07/07/(75 Inrernariunaic'liicd U:S Fundi& Corp., 0 OD%, 07/08/05 FHLXIC. 0 00%. 0i/26/05 FHLMC. 0.00'X. 05/02/06 Cumrnunwcalth Bank ol Australia. 0.00%. 07/1R/05 FH1.R. 0,0076, 07/06/05 Lciieral Electric Capiral Corp , 0 00%. 07/11/05 l:NhIA, 0 00%. 10/19/05 Crcgeni Korrh .4tncriu h c . . 0 00%. 07/05/05 Barclays U 5. Funding Corp , 0 00X. 08/18/05 Danske Corp . ROO%, 08/02/05 Rahobatik USA financc Corp . 0.00% 07/26/05 HBOS Treasury Senwes. 1700?6, 07/28/05 Crqem Nunti America Inc , 0 00%. 08/15/05 Svcnska Handelshanken Inc , 0 00%. 07/07/05 Toral Fina Elf Capiral, 0.00%, 08/09/05 Royal Bank of Scotland P1.C. 0 00%. 09/01/05 Bank of Anltmca C ~ r p , 0.00%, 08/16/07 FHLB. 0 00%, 08/17/05 1 , I ILLlC. 0 00%. 09/20/05 13ar.skt. Curp , 0 00%. 07/05/05 FHLMMC. 0 00%. 07/06/05 L\;c:esLpac Capiral Corp . O.0O'b. 07/08/05 HBOS Tremiry Sen iccz. 0 00'x.. 07/08/05 FHLMC. 0.00%. 09/16/07

5,607,994 4.941.530 3,817.113 3,060,865 1.996.196 2,987,100 2,857,757 2,498,792 2,488,065 2.204.615 2,176,447 1,994,382 1,994,012 1 ,961.044 1.817.858 1,704,250 1.500,781 1,494,531 1,299,294 1,289,182 1,271.19 3 1,190.181 1,108,292

999.560 999,094 989.749 899.674 896.044 797,592 638,551 598,399 597.531 499,729 498.221 447,424 443.1 11 389.349 282.861 229.917 199.91 2 179,886 99.568 54,608

65.105.187

TOTAL BONDS


TOTAL INVESTMENTS

65.105.187

65.10S.187

67.105.1 87

5 21 4 52 3.49 2 81 2 71 2 73 2.61 2.28 2.27 2.02 1.99 1.82 1.82 1 79 1 66 1 7 6 1 3 7 1 37 1 1 9 1 1 8 1.16 1.09 1.01 0.91 0.91 0 90 0 82 0 82 0.7.3 0 58 D.55 0.55 0.46 0.46 0.41 0.41 0.36 0 26 0.21 0.18 0.16 0 09 0 05

59 51

59 51

59,51

59.51

167

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton U.S. Value Fund -


(Cur rency - USD) Al l s ecu r i t i e s a re o rd ina ry unless o the rwise s t a t e d

Numher of ?6 of sharer. ur I )escriprion Counrry Trnding Markei ncl

face value cUdc currcnry \.slut. P S S t [ S

TRIh5FTRULL: SLCLKIIILS AZI)\IlTTED TO AX 0FFIC:lAl STOCK E X C M Y G E L I ~ I I Y G SHARES Aerospace & Defence Raythcon Lo. US..\ Guuclrich Curp L!SA Uutxlg Co. L!SA

3.1 70 .3 .8OO 1 .000

11.400

2.400 1.580

1.600

3.200 3.700

2,600 1.400

9.600

31,90(1

6,194

2,700

5,11717

8.600

.3,300 1.900

1.100 660

30.850

876 1,003

3,1017 4.500 3.000 5.300

12.400

7,680

163.130 1?.5.638 66.0co

384,778

2 04 1 0 5 17 83

4 82

173 Airlines

Capital Markets Morgan 5~;iriIq l\lernll L>iich &z Co . Inc

A\1R Coql 138.054

(!SA U5.I

129,928 86.916

1.58 1 09

212.844 2.67

7 1,148 0.89 Chemicals now Chemical C:o

Commercial Banks Rank 01 Amenca COT. Bank of hew Yurk Cu , lric

11SA

191.562 135.266

USA Lj.4

2 40 1 hY

4 09 326,828

171.710 48.314

Commercial Services & Supplies H&R Block Inc. R.R. Doiincllev 6z 50115 Co

L!SA USA

1.YO 0.61

2.51

1.170

200.024

79.872 Communications Equipment .A\aya hic

Computers & Peripherals LlaxLur Curp.

Containers &I Packaging PacLiv Curp.

Distribuwrs Genuine Parts Co

Diversified Financial Services JPhloi-gan Lhasc 6r Co.

I)iversiDed .Telecommunication Senices SBC ConimunicaLiuns Inc

Electric Ltililies lcco Energ! Inc Pepco Hnldings Inc

USA

l!SA 165.880 2.08

L!SA 33.667 1.68

1.39 USA 110,943

180,132 2.26 us.4

204.250 2.56 L!SA

0.78 0.57

U SA LS.4

62.403 45 486

107.889

48.510 18.638

1.35

0.61 0 23

Electricdl Equipment Hubbell lnc , B Thomas k Hei:, Curp

L!SA I! SA

67.148 0 84

Electronic Equipment & Instruments Solectron Cmp.

Energy Equipment & Services

liational-Oilwrll \ ,an<) Inc. rioble carp

(:SA 116.922 1.47

53,883 57.682

0.67 0.60

L!SA ~15.4

101,565 117

1.82 1.79 1 7 6 1 :+0

Food Products HJ Hein; Co Krdl Foods Inc.. A General Mills Inc :hencan ltaliari Pasu Cu . A

USA U5A I?SA USA

145.222 143,145 140.370 11 1,406

540 143

142.848

6 77

Oil br Gas El Faso Corp

Health Care Equipmrnl & Supplies Applera Corp - Applied Biosystcms Grvup

[;SA

L!SA

1.X

149.492 1.87

168

FRANKLIN TEMPLETON INVESTMENT FUNDS - Templeton U.S. Value Fund -


(Currency - USD) A l l securi t ies :ire o r d i n a r y unless otherwise s t a t ed

% ol shares u r Drscriprion Coun:!'! Trading Market ner

crrde cur rem > value asscis

Number of

rilct. \ 61~ue

Hcallh Care Providers & Services Tenet Healthcaw Curp Scrri~c Corp. Inieniatioiial D 6- K Hdhcare Research Inc :iinensou:ccBergcn Curp. tiCA Inc.

I S A USD 2 82 L 68 2 59 2 37 0 73

18,400 26.700 24.475

2.732 1.030

6.840

4,100

7.600 1,900

27.200 13.000 12 000 8,000

5.000

16,070 11,500

11,500

560

3,730

8,500 5,YW 5.000 2.600

10.100

6.420

4,300

6,600

225.216 214.1 33 206.814 188.Y18 58.370

89 3 .t 7 2 11.11)

Household Durahles kewell Rubbemaid Inc

Industrial Conglomerates Iredegar Curp

Insurance AON Curp. Amencan Intei-national Group I ric

lh3,Ohh 2.04 I :SA USD

63.960 0.80

USD 1!SD

190,304 110,390

2.39 1.38

300.694 3.77

lY9 376 177.580 170 640 194.000

IT Services BeaniigPoint lnc Carlcrict. 13esigri S! 51Fllls Inc Conwrgp Corp Electronic U a ~ a Syucms Corp

C:jA [!SA US.-\ L!SA

2 50 2 22 2 14 1 93

8 79

1 1 5

2 1 5 2 33

701,596

Leisure Equipmenl & Products h u e 1 Inc.

Media Interpublic Grvup o l (3s . . Inc. k e w Cow., Ltd , .4

91,500 U5D

195.733 186.070

4 78 381.803

Mulli-I-ine Retail Krogr Co

Oil 6r Gas Cheiron Corp

Paper & Forest Products

Pharmaceuticals Rristol-Myers Squilih ( :o Plizcr lnc. !duck k (3 , Inc Abbott Laboratories

Bowatcr lllc

218.815 2.74

0.39 I!SD 31.315

USL) 120,TW 1 5 1

2 hh 2 04 1 9 3 1 5 9

212,330 162,722 154.000 127,426

656,478 8.22

S o h a r e BMC 5dtwarc lrir

O f h c ~ M a ~ 111~ SpeL'ldhy Keldll

Texliles, Apparel & Luxury Goods Kellwood C:o

Thrifts 67 Mortgage Finance I! S Bancorp

TOTAL SHARES

181.297 c: 5 1)

I!SD

L!SD

I!SD

2 LT

2.39 191,123

115,670

192,720

7.738.784

1,45

2 41

96.94

TOTAL TRANSFERABLE SECUKlllES AUMIIIED TO AN OFFICIAL STOCK EXCHANGE LISTING 7.738.784 96.94

7.738.784 96.94 TOTAL INVESTMENTS

169

.. . . . ..


FRANKLIN TEMPLETON INVESTMENTS OFFICE DIRECTORY

Fuither infomintion regxcling Franklin Teinpleton Investment F L ~ S 15 available from the following Franklin rempleton Investments offices : EUROPE Belgium FRANKI.IU TEMPLLTON I:RANCE S.A., succursale belge Avenue de Tenxeren, 93 B-1 040 Brussels. Belgium Tel: 32 (0)2 743-3200 v n w f r a n klintcrnpleton. be France 1:RANKLIN TEMPLETON FIWNCE 5.4. 16-18, avenue George V 1'-75008 Paris, 1:rance Tcl: 33 (0)l 40 73 86 00 \n~-x.frankliiitcmplcton .fr Germany FRANKLIN TEMPLETOU IN\;liST,L1kNT SERVICES GMBH M a k e r Landstr. 16 Postfach 11 18 03 D-6032.5 Frankfurt, Gcimany Tel: 49 (0) 69 272 23 0 Germany Fi-eefonc: 08 00 0 73 80 02 Austria h e f o n e : 08 00 29 5Y 11 ~~~, . f rankl intempleton.de www franklintempletnn.at Italy FRANKI-IN TEMPLETON IIALIA SGR S.p.A. C.so ltalia 11.1 20122 Milan, Italy

39 02 854 591 mw-x. franklintemplct on .i t Luxembourg I'IMNKLIN IkMMPLETON INTERNATIONAL SERVICES S.A 26. boulevard Royal, L-2449 Luxem bourg BY. 169, L-2011 Luxembourg Grand-Duchy of Luxembourg Tel: 352 46 66 67 1 ~v.franklintempleton.lu The Netherlands IlLANKLlN TEhZPLETON INVESTMENT MANAC;E\IENT LIMITED Netherlands Branch Office -1.ranspolis Schiphol Airport Polaiisavenuc 83G r . 0 . Hox 2005 2130 LE Hoofddorp, The Netherlands Tel: 31 (0)23 568 7000 Netherlands 1:reefotie: 0800 256 804Y \n~~~.Sranklintcmplcton.nl Spain FRANKLIN TEMPLETON INVESTMENT hMNAGEMENT LIMITED Sucursal en Espana Jose Ortega I; Gasset, 30-Hajo 28006 Madrid, Spain Tel: 34 91 326 3600 vww.fran klintEmpleton.com.es ~ ~ ~ ~ ~ ~ . f r a n k l i n t c m p l e t ~ ~ ~ . c o m . p t Sweden FItqNKLIN .IEMPLETON INVESTMENT hlANAGkMEY.1. Ll\III~kU Stureplan 4C 5 1 1 4 35 Stockholm. Sweden Tel: 46 (0)8 463 3102 \nww franklintemple ton. se Switzerland FMNKLIN ~I~EM'LETON SWITZERLAND LTD bahnhofstrasse 22, P . 0 . Box CH-8022 Zurich, Snitzerland Tel: 41 (0) 44 2 l T 81 81 WUTW .frankliiitempletoii. ch

Fax. 32 (0\2 743-3228

Iax: 33 (0)l 40 7 3 86 10

Fax: 49 69 272 23 120

Fax: 39 02 854 59222

Fax: 352 46 66 76

Fax: 31 (0)23 568 7070

Fax: 34 91 577 1857

Fax: $6 (0)8 463 101 0

Fax:-tl (0) 44 217 81 82

United Kingdom London FRANKILIN TEMPLETON IN\TSTMENI. MANAGEMENT LIMITETI The Adelphi Building, 1-1 1 John Adam Street London WC2N 6HT, England, U.K. Tel: 44 (0120 7073 8500 U.K. Freefone: 0800 305 306 wvm. franlrlin t emplet on. co u k

Edinburgh FRANKLIN TEMPLETON INWSTMEVL. MANAGEMEUT LIMITEL7 5 Morrison Street kdinburgh EH3 8BH, Scotland, U K. Tel: 44 (0) 131 242 4000 U.K. Frecfonc: 0800 305 306 ww~~.franklintempleton,co .uk

AFRICA South Africa TEMPLETON ASSET MANAGEMENT LIMITED llarrow Court 2 Isle of 1 loughton. Boundar): Road Parktown 21Y3 South Africa Ie l : 2711 645 6500 vwu~. franklintempleton.co .za

ASIA Hong Kong FRANKLIN U2vlPLETON INVESTMENTS (ASIA) LIMITED 1 7 F Chater Ilouse, No. 8 Connaught Road Central Hong Kong ~ € 1 : 852-2877-7733 Fax: 852-2877-5403 WW. franklintemplct on .coni. hk

Singapore TElrlPLETON ASSET MANAGEMENT LTD 7 Temasek Boulevard #38-03 Suniec Tower 1 Singapore 038987 Tel: (65) 241 2662 ~~..franklintempleton .com.sg

Taiwan FRANKLIN TEMPILETON SECUKI'I~IES INVESTMENT CONSUL~IING (SINOAM) INC. 9th Floor, #87, Sec. 4 Chung Hsiao East Road, Taipei, Taiwan, R.O.C. Tel: 886-2-2781-0088 Fax: 886-2-2781-7788 ww.Sran klinsinoam.com.tw

NORTH AMERICA Bahamas TEMPLETON GLOBAL ADVISORS LIMITED & TEMPI_E'I-ON GLOBAL HOLDINGS LIMITED West Bay St.reet.. P.O. Box N-7759, Lyford Cay Nassau, Bahamas

SOUTH AMERICA Argentina IEMPLETON ASSET MANAGEMENT LTD lngeniero Butty 220. 1 lth Floor ( c l 0 0 l AFB) Buenos Aircs, Argentina TeI 54-11-4313-0848 Fax: 54-1 1-4713-0885

Pleosc notc that thr wrbsita mentioncd ubove ure dirccted ut rcsidenrs within thc country stured on lhese wcbsires. (Plrast. refct- to the website

Fax: 44 (0)20 7073 8700

Fax: 44 (0) 131 212 4533

Fax: 2711 484 3311

FJX: (65) 6332 2295

.Iel: 1-242-362 4600 Fax: 1-242-362 4308

disclaimers.)

170

f

I...

Date post:	10-Jan-2023
Category:	Documents
Upload:	khangminh22
View:	0 times
Download:	0 times

FRANKLIN TEMPLETON - Fundsquare

Documents