Notes to Financial Statements (unaudited)
2. TRANSACTIONS IN SHARES OF CAPITAL STOCK
As of February 28, 1997, there were 30,000,000 shares of capital stock authorized ($0.01 par value). During
the six month ended February 28, 1997 and the year ended August 31, 1996, 12,244 shares were issued for
$2,031,444 and 251,242 shares were issued for $4,143,230 from reinvested distributions, respectively.
3. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also directors or officers of Templeton Asset Management Ltd. (TAML), and
Franklin Templeton Services, Inc. (FTSI), the Fund's investment manager and administrative manager,
respectively. The Fund pays monthly an investment management fee to TAML equal, on an annual basis, to
1.25% of the average daily net assets of the Fund. The Fund pays FTSI monthly a fee computed at an annual
rate of 0.15% of the Fund's average daily net assets.
An officer of the Fund is a partner of Dechert Price & Rhoads, legal counsel for the Fund, which firm received
fees for the six months ended February 28, 1997.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the six months ended February 28, 1997
aggregated $7,992,078 and $36,645,633, respectively. The cost of securities for federal income tax purposes is
$204,193,348. Realized gains and losses are reported on an identified cost basis.
At February 28, 1997, the aggregate gross unrealized appreciation and depreciation of portfolio securities, based
on cost for federal income tax purposes, was as follows:
Unrealized appreciation $139,157,518
Unrealized depreciation (13,483,775)
Net unrealized appreciation $125,673,743