UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-04450
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FRANKLIN TEMPLETON GLOBAL TRUST
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(Exact name of registrant as specified in charter)

ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Address of principal executive offices) (Zip code)

CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000
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Date of fiscal year end: 10/31
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Date of reporting period: 10/31/06
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ITEM 1. REPORTS TO STOCKHOLDERS.

[GRAPHIC OMITTED]

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OCTOBER 31, 2006
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A series of Franklin Templeton
Global Trust

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ANNUAL REPORT AND SHAREHOLDER LETTER INCOME
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WANT TO RECEIVE
THIS DOCUMENT
FASTER VIA EMAIL?
FRANKLIN TEMPLETON
HARD CURRENCY FUND Eligible shareholders can
sign up for eDelivery at
franklintempleton.com.
See inside for details.
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[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS

FRANKLIN o TEMPLETON o MUTUAL SERIES

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management groups--
Franklin, Templeton and Mutual Series.

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

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

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

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

TRUE DIVERSIFICATION Because our management groups work independently
and adhere to different investment approaches,
Franklin, Templeton and Mutual Series funds
typically have distinct portfolios. That's why our
funds can be used to build truly diversified
allocation plans covering every major asset class.

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

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MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS
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[GRAPHIC OMITTED]

Not part of the annual report

Contents

SHAREHOLDER LETTER ........................................................ 1

ANNUAL REPORT

Franklin Templeton Hard Currency Fund ..................................... 3

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

Your Fund's Expenses ...................................................... 11

Financial Highlights and Statement of Investments ......................... 13

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

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

Report of Independent Registered Public Accounting Firm ................... 30

Tax Designation ........................................................... 31

Board Members and Officers ................................................ 32

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

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Shareholder Letter

Dear Shareholder:

During the 12 months ended October 31, 2006, many global economies expanded at a
robust pace, supported by export growth and healthy domestic demand. Although
U.S. growth moderated, trade among other expanding economies helped maintain
global expansion. In this environment, many countries' currencies strengthened
against the U.S. dollar.

In the enclosed annual report for Franklin Templeton Hard Currency Fund, the
portfolio manager discusses market conditions, investment management decisions
and Fund performance during the period under review. You will also find
performance data and financial information. Please remember that all securities
markets fluctuate, as do mutual fund share prices.

If you would like more frequent updates, FRANKLINTEMPLETON.COM provides daily
prices, monthly performance figures, portfolio holdings and other information.
You can also access your account, buy and sell shares, read timely articles, and
find helpful financial planning tools. We hope you will take advantage of these
online services.

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EDELIVERY DETAILS

Log in at franklintempleton.com and click on eDelivery. Shareholders who are
registered at franklintempleton.com can receive these reports via email. Not all
accounts are eligible for eDelivery.

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NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
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Not part of the annual report | 1

As always, we recommend investors consult their financial advisors and review
their portfolios to design a long-term strategy and portfolio allocation that
meet their individual needs, goals and risk tolerance. We firmly believe that
most people benefit from professional advice, and that advice is invaluable as
investors navigate changing market environments.

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

Sincerely,

/s/ Rupert H. Johnson, Jr.

Rupert H. Johnson, Jr.
President and Chief Executive Officer - Investment Management
Franklin Templeton Global Trust

THIS LETTER REFLECTS OUR ANALYSIS AND OPINIONS AS OF OCTOBER 31, 2006. THE
INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET, COUNTRY,
INDUSTRY, SECURITY OR FUND. STATEMENTS OF FACT ARE FROM SOURCES CONSIDERED
RELIABLE.

2 | Not part of the annual report

Annual Report

Franklin Templeton Hard Currency Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin Templeton Hard Currency Fund
seeks to protect against depreciation of the U.S. dollar relative to other
currencies. The Fund seeks to achieve its goal by investing at least 80% of its
net assets in investments denominated in hard currencies (as defined in the
prospectus). The Fund normally invests mainly in high-quality short-term money
market instruments and forward currency contracts denominated in foreign hard
currencies, which historically have experienced low inflation rates and which,
in the investment manager's view, follow economic policies conducive to
continual low inflation rates and currency appreciation versus the U.S. dollar
over the long term.

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PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.

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This annual report for Franklin Templeton Hard Currency Fund covers the fiscal
year ended October 31, 2006.

PERFORMANCE OVERVIEW

Franklin Templeton Hard Currency Fund - Class A posted a cumulative total return
of +8.06% for the 12 months under review. The Fund slightly under-performed its
benchmark, the J.P. Morgan (JPM) 3 Month Global Cash Index, which posted a total
return of +8.58% for the same period. 1 The Fund typically does not attempt to
directly match the composition of the index; thus the results are not directly
comparable. The Fund outperformed the U.S. dollar, which fell 4.56% relative to
its major U.S. trading partners during the period. 2 The dollar rose 0.64%
versus the Japanese yen and fell 6.16% versus the euro. 3 You can find the
Fund's long-term performance data in the Performance Summary beginning on page
8.

1. Source: J.P. Morgan. The J.P. Morgan 3 Month Global Cash Index tracks
total returns of 3-month constant maturity euro-currency deposits, the
only short-term securities consistent across all markets in terms of
liquidity, maturity and credit quality. The index is unmanaged and
includes reinvested distributions. One cannot invest directly in an index,
nor is an index representative of the Fund's portfolio.

2. Source: Federal Reserve Board (H10 Report). The Federal Reserve Board U.S.
Trade Weighted Major Currency Dollar Index is a weighted average of the
foreign exchange values of the U.S. dollar against a subset of currencies
in the broad index that circulates widely outside the country of issue.

3. Source: Exshare via Factset.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 15.

Annual Report | 3

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WHAT IS A CURRENT ACCOUNT?
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A current account is that part of the balance of payments where all of one
country's international transactions in goods, services, income and transfers
are recorded.

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WHAT IS BALANCE OF PAYMENTS?
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Balance of payments is a record of all of a country's exports and imports of
goods and services, borrowing and lending with the rest of the world during a
particular time period. It helps a country evaluate its competitive strengths
and weaknesses and forecast the strength of its currency.

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ECONOMIC AND MARKET OVERVIEW

Global economic growth remained strong for the year under review and
demonstrated resilience to higher commodity prices, including oil, and the
normalization of global interest rates. Regionally, growth was generally robust
in Asia, strengthening in Europe and moderating in the U.S.

In the third quarter of 2006, the U.S. economy expanded 2.9% compared with the
same quarter of 2005 (year-over-year). The U.S. Federal Reserve Board (Fed) led
the global interest rate tightening cycle with consecutive 25-basis-point
increases starting mid-2004 (100 basis points equal one percentage point). As
household consumption moderated and the housing market cooled amid inflation
pressure stemming from labor costs and energy prices, the Fed paused with the
federal funds target rate at 5.25% after raising short-term interest rates 150
basis points during the 12-month period. Inflation rose to its highest level
since 1996, or 2.9%, in September as measured by the core Consumer Price Index
(CPI). 4 The U.S. dollar weakened 4.56% versus its major trading partners and
the difference in growth rates between the U.S. and its major trading partners
narrowed during the period.2 Despite the dollar's depreciation, the U.S. trade
balance grew to $64 billion in September. The U.S. current account deficit
remained large at 6.6% of gross domestic product (GDP) at the end of third
quarter 2006. 5

Regionally, the Pacific Rim, which accounted for 52% of the U.S. trade deficit
in September, continued to play a prominent role in terms of global imbalances,
characterized by the large U.S. current account deficit. 6 The international
reserve accumulation by major oil producers and export-intensive countries such
as China remained significant during the reporting period. For example, by the
end of October 2006, China's international reserves were at US$1,009 billion,
increasing on average more than US$18 billion per month. 7 Growth in Asia was
generally robust, accompanied by increasing domestic demand in some countries.
Trade surpluses in Asia (outside of China) narrowed, as oil prices and stronger
domestic demand contributed to rising imports. Relative to the 2.9%
year-over-year GDP growth in the U.S. in third quarter 2006, China's economy
grew 10.4%, Singapore's 7.2% and South Korea's 4.6%. 8 Although Asia's interest
rates tightened during the year, the most notable shift in monetary policy was
in Japan. During the period, the country ended its policy of quantitative easing
and a zero percent interest rate, adopted in 2001 to

4. Source: Bureau of Labor Statistics. Core CPI excludes food and energy
costs.

5. Sources: Federal Reserve; U.S. Bureau of Economic Analysis.

6. Source: U.S. Department of the Treasury.

7. Source: The People's Bank of China.

8. Sources: U.S. Bureau of Economic Analysis; The People's Bank of China;
Monetary Authority of Singapore; Bank of Korea.

4 | Annual Report

combat entrenched deflation and weak domestic growth prospects. Stronger
domestic demand, driven by investment, and prospects for sustainable positive
inflation led the Bank of Japan to increase interest rates 25 basis points in
July 2006.

Driven by exports and investment, Europe's growth rates during the 12-month
period notably improved and were generally above trend. Euro-zone growth reached
2.7% in second quarter 2006 year-over-year. 9 The European Central Bank (ECB)
began increasing interest rates in December 2005 and tightened a cumulative 125
basis points through the reporting period. Although unemployment rates remained
high in some of the larger economies such as Germany and France, they exhibited
gradual improvement over the year. Similar trends, sometimes amplified, could be
found throughout non-euro European countries such as Poland, Sweden and Norway.
For example, Poland and Sweden's economic growth rose 5.5% and 5.3% in second
quarter 2006 year-over-year, while Norway's increased 3.8%. 10 Although these
three countries experienced a low inflation/strong growth environment, tighter
labor markets and rising resource utilization indicated building pressure on
resources. In total, Sweden's central bank increased interest rates 125 basis
points, Norway's raised rates 100 basis points, while Poland's reduced rates 50
basis points during the 12-month period.

INVESTMENT STRATEGY

In making investments in foreign hard currencies, we focus on countries and
markets that historically have experienced low inflation rates and, in our
opinion, follow economic policies favorable to continued low inflation rates and
currency appreciation against the U.S. dollar over the long term.

MANAGER'S DISCUSSION

During the fiscal year under review, the Fund continued to act as a hedge
against U.S. dollar depreciation. The U.S. balance of payment position
deteriorated further, led by a larger current account deficit and continued
reliance on debt financing, particularly from the government sector. Indicative
of the magnitude of the global macroeconomic imbalances, the U.S. dollar fell
4.56% relative to its major trading partners during the 12-month reporting
period, despite higher short-term interest rates in the U.S. compared to other
large economies. 2 As a result, further U.S. dollar weakness may be necessary to
facilitate an adjustment in the U.S. current account position during the medium
term.

ASSET ALLOCATION BY CURRENCY
Based on Total Net Assets as of 10/31/06*

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

Japanese Yen 24.7%
Canadian Dollar 14.4%
Swedish Krona 13.0%
Singapore Dollar 12.4%
Euro 6.3%
Korean Won 5.1%
Norwegian Krone 4.8%
Polish Zloty 4.2%
Australian Dollar 3.9%
Indonesian Rupiah 3.7%
Thailand Baht 3.6%
Swiss Franc 3.1%
Danish Krone 2.8%

* U.S. dollar = -2.0% because of the Fund's holdings of forward currency
exchange contracts.

9. Source: Eurostat.

10. Sources: National Bank of Poland; Sveriges Riksbank (Bank of Sweden);
Central Bank of Norway.

Annual Report | 5

ASIA

Given the extent of trade and capital flow imbalances between the U.S. and Asia,
we continued to hold an overweighted exposure to Asia compared to other regions.
During the period, as the Japanese yen weakened against the U.S. dollar, we
reinitiated a position in the yen, due to our assessment of improving
fundamentals and attractive valuation. At period-end, the yen represented the
Fund's largest currency exposure. According to our analysis, the shift in the
central bank's monetary policy strategy reflected sufficient economic momentum
to foster a re-inflationary environment after years of deflation.
Correspondingly, the economic recovery deepened, led by more dynamic growth in
domestic consumer expenditures and private investment spending. The Fund's
basket of non-Japan Asian currencies generated strong positive returns and
outperformed the yen, which was a key underweighted position until late in the
reporting period. Versus the dollar, the Thai baht rose 11.10%, the Indonesian
rupiah was up 11.00%, the South Korean won appreciated 10.40%, and the Singapore
dollar rose 8.89%, while the yen depreciated 0.64% during the Fund's fiscal
year. 3

AMERICAS

Among the Americas, the Fund maintained significant exposure to the Canadian
dollar during the reporting period. Currency exposure to the Canadian dollar was
a contributor to Fund performance as the Canadian dollar appreciated 5.27%
against the U.S. dollar. 3 The Canadian dollar benefited from Canada's net
exportation of commodities, particularly oil and natural gas, as oil prices
reached peak levels during the year. Canada's balance of payment position
strengthened largely because of an improved trade surplus and foreign investment
inflows into the country's energy sector. Equally important, however, was the
indirect impact of commodity demand on the labor market, where the unemployment
rate dropped to a three-decade low of 6.1% during the period. 11

EUROPE

In Europe, we continued to trim the Fund's exposure to the euro in favor of
Asian and other European (non-euro) currencies. These economies had higher
relative growth rates with low inflation supported by stronger employment
growth, continued export strength, and high relative productivity growth. The
Fund benefited from exposure to the Polish zloty and Swedish krona, which rose
9.11% and 10.28% against the U.S. dollar. 3 On the other hand, the Norwegian
krone depreciated 0.62% and detracted from Fund performance. 3 Overall, the Fund
reduced exposure to Europe during the period, primarily through reduced
allocation to the euro. However, the euro's 6.56% rise versus the dollar also
detracted from Fund performance. 3

11. Source: Statistics Canada.

6 | Annual Report

Thank you for your continued participation in Franklin Templeton Hard Currency
Fund. We look forward to serving your future investment needs.

[PHOTO OMITTED] /s/ Michael Hasenstab

Michael Hasenstab, Ph.D.
Portfolio Manager
Franklin Templeton Hard Currency Fund

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF OCTOBER 31, 2006, THE END OF THE REPORTING PERIOD. THE WAY WE IMPLEMENT
OUR MAIN INVESTMENT STRATEGIES AND THE RESULTING PORTFOLIO HOLDINGS MAY CHANGE
DEPENDING ON FACTORS SUCH AS MARKET AND ECONOMIC CONDITIONS. THESE OPINIONS MAY
NOT BE RELIED UPON AS INVESTMENT ADVICE OR AN OFFER FOR A PARTICULAR SECURITY.
THE INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET,
COUNTRY, INDUSTRY, SECURITY OR THE FUND. STATEMENTS OF FACT ARE FROM SOURCES
CONSIDERED RELIABLE, BUT THE INVESTMENT MANAGER MAKES NO REPRESENTATION OR
WARRANTY AS TO THEIR COMPLETENESS OR ACCURACY. ALTHOUGH HISTORICAL PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS, THESE INSIGHTS MAY HELP YOU UNDERSTAND OUR
INVESTMENT MANAGEMENT PHILOSOPHY.

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Please note that although the Fund's Statement of Investments on page 15 of this
report indicates the Fund held 57.9% of its total investments in U.S.
dollar-denominated assets as of 10/31/06, its net exposure to the U.S. dollar as
of that date was only -2.0%. The difference is explained by the Fund's holdings
of forward currency exchange contracts (please see Note 7 in the Notes to
Financial Statements on page 19 of this report) calling for the purchase of
various foreign currencies in exchange for U.S. dollars at various future dates.
The combination of U.S. dollar-denominated instruments with "long" forward
currency exchange contracts creates a position economically equivalent to a
money market instrument denominated in the foreign currency itself. Such
combined positions are an appropriate strategy when the money market for a
particular foreign currency is small or relatively illiquid.

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Annual Report | 7

Performance Summary as of 10/31/06

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

PRICE AND DISTRIBUTION INFORMATION

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CLASS A (SYMBOL: ICPHX) CHANGE 10/31/06 10/31/05
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Net Asset Value (NAV) +$0.05 $9.39 $9.34
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DISTRIBUTIONS (11/1/05-10/31/06)
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Dividend Income $0.6634
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ADVISOR CLASS (SYMBOL: ICHHX) CHANGE 10/31/06 10/31/05
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Net Asset Value (NAV) +$0.05 $9.41 $9.36
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DISTRIBUTIONS (11/1/05-10/31/06)
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Dividend Income $0.6887
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PERFORMANCE

CUMULATIVE TOTAL RETURN EXCLUDES SALES CHARGES. AVERAGE ANNUAL TOTAL RETURNS AND
VALUE OF $10,000 INVESTMENT INCLUDE MAXIMUM SALES CHARGES. CLASS A: 2.25%
MAXIMUM INITIAL SALES CHARGE; ADVISOR CLASS: NO SALES CHARGES. THE FUND MAY
CHARGE A 2% FEE ON REDEMPTIONS MADE WITHIN SEVEN DAYS OF PURCHASE.

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CLASS A 1-YEAR 5-YEAR 10-YEAR
- -----------------------------------------------------------------------------------------------------

Cumulative Total Return 1 +8.06% +53.88% +24.07%
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Average Annual Total Return 2 +5.69% +8.50% +1.95%
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Value of $10,000 Investment 3 $10,569 $15,034 $12,126
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Avg. Ann. Total Return (9/30/06) 4 +3.79% +8.01% +1.79%
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Distribution Rate 5 1.97%
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30-Day Standardized Yield 6 2.80%
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ADVISOR CLASS 7 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return 1 +8.35% +56.74% +28.15%
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Average Annual Total Return 2 +8.35% +9.40% +2.51%
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Value of $10,000 Investment 3 $10,835 $15,674 $12,815
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Avg. Ann. Total Return (9/30/06) 4 +6.62% +8.91% +2.36%
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Distribution Rate 5 2.03%
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30-Day Standardized Yield 6 3.21%
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FOR MOST RECENT MONTH-END PERFORMANCE, SEE "FUNDS AND PERFORMANCE" AT
FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236.

8 | Annual Report

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT

Total return represents the change in value of an investment over the periods
shown. It includes any current, applicable, maximum sales charge, Fund expenses,
account fees and reinvested distributions. The unmanaged index includes
reinvestment of any income or distributions. It differs from the Fund in
composition and does not pay management fees or expenses. One cannot invest
directly in an index.

CLASS A (11/1/96-10/31/06)

[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]

Franklin Templeton JP Morgan 3 Month
Date Hard Currency Fund Global Cash Index 8
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11/1/1996 9773 10000
11/30/1996 9648 9984
12/31/1996 9545 9964
1/31/1997 9050 9541
2/28/1997 8884 9390
3/31/1997 8938 9464
4/30/1997 8719 9260
5/31/1997 9047 9432
6/30/1997 8928 9386
7/31/1997 8549 9092
8/31/1997 8618 9200
9/30/1997 8765 9345
10/31/1997 8964 9514
11/30/1997 8709 9328
12/31/1997 8550 9177
1/31/1998 8574 9145
2/28/1998 8658 9237
3/31/1998 8346 9138
4/30/1998 8466 9329
5/31/1998 8417 9295
6/30/1998 8297 9256
7/31/1998 8311 9291
8/31/1998 8486 9312
9/30/1998 8865 9730
10/31/1998 9361 9955
11/30/1998 9029 9819
12/31/1998 9392 9982
1/31/1999 9121 9868
2/28/1999 8886 9636
3/31/1999 8795 9597
4/30/1999 8659 9564
5/31/1999 8577 9488
6/30/1999 8476 9442
7/31/1999 8778 9722
8/31/1999 8714 9692
9/30/1999 8825 9828
10/31/1999 8770 9779
11/30/1999 8595 9556
12/31/1999 8604 9600
1/31/2000 8289 9438
2/29/2000 8169 9322
3/31/2000 8373 9378
4/30/2000 8009 9041
5/31/2000 8102 9103
6/30/2000 8355 9386
7/31/2000 8092 9161
8/31/2000 7904 8978
9/30/2000 7858 8904
10/31/2000 7593 8668
11/30/2000 7735 8807
12/31/2000 8068 9328
1/31/2001 8001 9285
2/28/2001 7886 9177
3/31/2001 7561 8863
4/30/2001 7619 8972
5/31/2001 7474 8774
6/30/2001 7387 8765
7/31/2001 7600 8972
8/31/2001 7871 9264
9/30/2001 7958 9251
10/31/2001 7880 9213
11/30/2001 7831 9215
12/31/2001 7743 9173
1/31/2002 7517 8980
2/28/2002 7576 9040
3/31/2002 7683 9145
4/30/2002 7921 9394
5/31/2002 8198 9730
6/30/2002 8477 10154
7/31/2002 8427 10082
8/31/2002 8447 10140
9/30/2002 8517 10187
10/31/2002 8598 10251
11/30/2002 8678 10314
12/31/2002 9117 10728
1/31/2003 9327 10961
2/28/2003 9442 11051
3/31/2003 9484 11158
4/30/2003 9632 11404
5/31/2003 10074 11903
6/30/2003 9947 11786
7/31/2003 9788 11568
8/31/2003 9692 11444
9/30/2003 10139 12060
10/31/2003 10235 12161
11/30/2003 10491 12462
12/31/2003 10874 12991
1/31/2004 10818 12889
2/29/2004 10874 12901
3/31/2004 10792 12889
4/30/2004 10465 12535
5/31/2004 10555 12732
6/30/2004 10526 12716
7/31/2004 10480 12644
8/31/2004 10628 12774
9/30/2004 10906 13045
10/31/2004 11202 13383
11/30/2004 11668 13936
12/31/2004 11796 14157
1/31/2005 11535 13737
2/28/2005 11760 13969
3/31/2005 11587 13746
4/30/2005 11551 13715
5/31/2005 11277 13274
6/30/2005 11163 13091
7/31/2005 11175 13109
8/31/2005 11307 13297
9/30/2005 11269 13166
10/31/2005 11221 13052
11/30/2005 11197 12901
12/31/2005 11296 12943
1/31/2006 11664 13319
2/28/2006 11562 13157
3/31/2006 11579 13214
4/30/2006 12064 13780
5/31/2006 12128 14051
6/30/2006 12049 13991
7/31/2006 12087 14036
8/31/2006 12062 14106
9/30/2006 11971 13991
10/31/2006 12126 14172

AVERAGE ANNUAL TOTAL RETURN

- -----------------------------------------
CLASS A 10/31/06
- -----------------------------------------
1-Year +5.69%
- -----------------------------------------
5-Year +8.50%
- -----------------------------------------
10-Year +1.95%
- -----------------------------------------

ADVISOR CLASS (11/1/96-10/31/06) 7

[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]

Franklin Templeton JP Morgan 3 Month
Date Hard Currency Fund Global Cash Index 8
- --------------------------------------------------------------------------------
11/1/1996 10000 10000
11/30/1996 9871 9984
12/31/1996 9766 9964
1/31/1997 9279 9541
2/28/1997 9102 9390
3/31/1997 9168 9464
4/30/1997 8936 9260
5/31/1997 9274 9432
6/30/1997 9163 9386
7/31/1997 8766 9092
8/31/1997 8838 9200
9/30/1997 8989 9345
10/31/1997 9196 9514
11/30/1997 8935 9328
12/31/1997 8774 9177
1/31/1998 8800 9145
2/28/1998 8889 9237
3/31/1998 8570 9138
4/30/1998 8703 9329
5/31/1998 8646 9295
6/30/1998 8305 9256
7/31/1998 8539 9291
8/31/1998 8728 9312
9/30/1998 9136 9730
10/31/1998 9645 9955
11/30/1998 9317 9819
12/31/1998 9693 9982
1/31/1999 9414 9868
2/28/1999 9172 9636
3/31/1999 9069 9597
4/30/1999 8937 9564
5/31/1999 8853 9488
6/30/1999 8737 9442
7/31/1999 9048 9722
8/31/1999 8982 9692
9/30/1999 9107 9828
10/31/1999 9049 9779
11/30/1999 8869 9556
12/31/1999 8882 9600
1/31/2000 8557 9438
2/29/2000 8433 9322
3/31/2000 8649 9378
4/30/2000 8274 9041
5/31/2000 8370 9103
6/30/2000 8634 9386
7/31/2000 8363 9161
8/31/2000 8169 8978
9/30/2000 8128 8904
10/31/2000 7853 8668
11/30/2000 8001 8807
12/31/2000 8341 9328
1/31/2001 8282 9285
2/28/2001 8163 9177
3/31/2001 7823 8863
4/30/2001 7884 8972
5/31/2001 7744 8774
6/30/2001 7660 8765
7/31/2001 7881 8972
8/31/2001 8152 9264
9/30/2001 8257 9251
10/31/2001 8176 9213
11/30/2001 8126 9215
12/31/2001 8044 9173
1/31/2002 7809 8980
2/28/2002 7871 9040
3/31/2002 7979 9145
4/30/2002 8236 9394
5/31/2002 8523 9730
6/30/2002 8817 10154
7/31/2002 8765 10082
8/31/2002 8786 10140
9/30/2002 8870 10187
10/31/2002 8964 10251
11/30/2002 9038 10314
12/31/2002 9505 10728
1/31/2003 9723 10961
2/28/2003 9853 11051
3/31/2003 9906 11158
4/30/2003 10049 11404
5/31/2003 10522 11903
6/30/2003 10387 11786
7/31/2003 10220 11568
8/31/2003 10132 11444
9/30/2003 10598 12060
10/31/2003 10709 12161
11/30/2003 10976 12462
12/31/2003 11382 12991
1/31/2004 11323 12889
2/29/2004 11382 12901
3/31/2004 11310 12889
4/30/2004 10968 12535
5/31/2004 11074 12732
6/30/2004 11031 12716
7/31/2004 10996 12644
8/31/2004 11162 12774
9/30/2004 11446 13045
10/31/2004 11769 13383
11/30/2004 12257 13936
12/31/2004 12386 14157
1/31/2005 12125 13737
2/28/2005 12361 13969
3/31/2005 12179 13746
4/30/2005 12154 13715
5/31/2005 11867 13274
6/30/2005 11751 13091
7/31/2005 11776 13109
8/31/2005 11914 13297
9/30/2005 11866 13166
10/31/2005 11828 13052
11/30/2005 11790 12901
12/31/2005 11915 12943
1/31/2006 12303 13319
2/28/2006 12196 13157
3/31/2006 12206 13214
4/30/2006 12731 13780
5/31/2006 12798 14051
6/30/2006 12723 13991
7/31/2006 12764 14036
8/31/2006 12737 14106
9/30/2006 12651 13991
10/31/2006 12815 14172

AVERAGE ANNUAL TOTAL RETURN

- -------------------------------------------
ADVISOR CLASS 7 10/31/06
- -------------------------------------------
1-Year +8.35%
- -------------------------------------------
5-Year +9.40%
- -------------------------------------------
10-Year +2.51%
- -------------------------------------------

Annual Report | 9

Performance Summary (CONTINUED)

ENDNOTES

SPECIAL RISKS ARE ASSOCIATED WITH FOREIGN INVESTING, INCLUDING ECONOMIC
INSTABILITY AND POLITICAL DEVELOPMENTS. THE FUND'S ASSETS ARE LARGELY INVESTED
IN FOREIGN CURRENCIES, AND THEREFORE INVOLVE POTENTIAL FOR SIGNIFICANT GAIN OR
LOSS FROM CURRENCY EXCHANGE RATE FLUCTUATIONS. THE FUND DOES NOT SEEK TO
MAINTAIN A STABLE NET ASSET VALUE AND SHOULD NOT BE CONSIDERED A SUBSTITUTE FOR
A U.S. DOLLAR MONEY MARKET FUND. THE FUND'S PROSPECTUS ALSO INCLUDES A
DESCRIPTION OF THE MAIN INVESTMENT RISKS.

CLASS A: Prior to 8/3/98, these shares were offered at a higher initial
sales charge; thus actual total returns would have been lower.

ADVISOR CLASS: Shares are available to certain eligible investors as
described in the prospectus.

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

2. Average annual total return represents the average annual change in value
of an investment over the periods indicated.

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

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

5. Distribution rate is based on the sum of the respective class's last four
quarterly dividends and the maximum offering price (NAV for Advisor Class)
per share on 10/31/06.

6. Yield, calculated as required by the SEC, is based on the earnings of the
Fund's portfolio for the 30 days ended 10/31/06.

7. Effective 1/2/97, the Fund began offering Advisor Class shares, which do
not have sales charges or a Rule 12b-1 plan. Performance quotations for
this class reflect the following methods of calculation: (a) For periods
prior to 1/2/97, a restated figure is used based upon the Fund's Class A
performance, excluding the effect of Class A's maximum initial sales
charge, but reflecting the effect of the Class A Rule 12b-1 fees; and (b)
for periods after 1/1/97, actual Advisor Class performance is used
reflecting all charges and fees applicable to that class. Since 1/2/97
(commencement of sales), the cumulative and average annual total returns
of Advisor Class shares were +31.22% and +2.80%.

8. Source: J.P. Morgan. The J.P. Morgan 3 Month Global Cash Index tracks
total returns of 3-month constant maturity euro-currency deposits, the
only short-term securities consistent across all markets in terms of
liquidity, maturity and credit quality.

10 | Annual Report

Your Fund's Expenses

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

o Transaction costs, including sales charges (loads) on Fund purchases and
redemption fees; and

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

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

ACTUAL FUND EXPENSES

The first line (Actual) for each share class listed in the table provides actual
account values and expenses. The "Ending Account Value" is derived from the
Fund's actual return, which includes the effect of Fund expenses.

You can estimate the expenses you paid during the period by following these
steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS
ILLUSTRATION:

1. Divide your account value by $1,000.

IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."

IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

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

Annual Report | 11

Your Fund's Expenses (CONTINUED)

PLEASE NOTE THAT EXPENSES SHOWN IN THE TABLE ARE MEANT TO HIGHLIGHT ONGOING
COSTS AND DO NOT REFLECT ANY TRANSACTION COSTS, SUCH AS SALES CHARGES OR
REDEMPTION FEES. Therefore, the second line for each class is useful in
comparing ongoing costs only, and will not help you compare total costs of
owning different funds. In addition, if transaction costs were included, your
total costs would have been higher. Please refer to the Fund prospectus for
additional information on operating
expenses.

- ------------------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
CLASS A VALUE 5/1/06 VALUE 10/31/06 PERIOD* 5/1/06-10/31/06
- ------------------------------------------------------------------------------------------------------------------

Actual $1,000 $1,005.10 $5.86
- ------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,019.36 $5.90
- ------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS
- ------------------------------------------------------------------------------------------------------------------
Actual $1,000 $1,006.60 $4.15
- ------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,021.07 $4.18
- ------------------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio for each class (A:
1.16% and Advisor: 0.82%), multiplied by the average account value over
the period, multiplied by 184/365 to reflect the one-half year period.

12 | Annual Report

Franklin Templeton Global Trust

FINANCIAL HIGHLIGHTS

FRANKLIN TEMPLETON HARD CURRENCY FUND

------------------------------------------------------------
YEAR ENDED OCTOBER 31,
CLASS A 2006 2005 2004 2003 2002
------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)

Net asset value, beginning of year ................................. $ 9.34 $ 9.85 $ 9.59 $ 8.56 $ 8.08
------------------------------------------------------------
Income from investment operations a:

Net investment income b ........................................... 0.24 0.15 0.09 0.11 0.09

Net realized and unrealized gains (losses) ........................ 0.47 (0.12) 0.78 1.46 0.63
------------------------------------------------------------
Total from investment operations ................................... 0.71 0.03 0.87 1.57 0.72
------------------------------------------------------------
Less distributions from:

Net investment income and net realized foreign currency gains ..... (0.66) (0.46) (0.61) (0.54) (0.24)

Net realized gains ................................................ -- (0.08) -- -- --
------------------------------------------------------------
Total distributions ................................................ (0.66) (0.54) (0.61) (0.54) (0.24)
------------------------------------------------------------
Redemption fees .................................................... -- d -- d -- d -- --
------------------------------------------------------------
Net asset value, end of year ....................................... $ 9.39 $ 9.34 $ 9.85 $ 9.59 $ 8.56
============================================================

Total return c ..................................................... 8.06% 0.17% 9.44% 19.05% 9.11%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of year (000's) .................................... $322,449 $190,163 $211,098 $143,715 $50,622

Ratios to average net assets:

Expenses .......................................................... 1.13% e 1.19% e 1.24% e 1.32% 1.50%

Net investment income ............................................. 2.58% 1.54% 0.95% 1.19% 1.10%

Portfolio turnover rate ............................................ 0.00% f 0.00% f 0.00% f 0.00% f 76.27%

a The amount shown for a share outstanding throughout the period may not
correlate with the Statement of Operations for the period due to the
timing of sales and repurchase of the Fund shares in relation to income
earned and/or fluctuating market value of the investments of the Fund.

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable.

d Amount rounds to less than $0.01 per share.

e Benefit of expense reduction rounds to less than 0.01%.

f See Note 6 regarding investment transactions.

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

Franklin Templeton Global Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

------------------------------------------------------------
YEAR ENDED OCTOBER 31,
ADVISOR CLASS 2006 2005 2004 2003 2002
------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)

Net asset value, beginning of year ............................... $ 9.36 $ 9.87 $ 9.61 $ 8.58 $ 8.09
------------------------------------------------------------
Income from investment operations a:

Net investment income b ......................................... 0.27 0.18 0.13 0.14 0.12

Net realized and unrealized gains (losses) ...................... 0.47 (0.12) 0.79 1.46 0.64
------------------------------------------------------------
Total from investment operations ................................. 0.74 0.06 0.92 1.60 0.76
------------------------------------------------------------
Less distributions from:

Net investment income and net realized foreign currency gains ... (0.69) (0.49) (0.66) (0.57) (0.27)

Net realized gains .............................................. -- (0.08) -- -- --
------------------------------------------------------------
Total distributions .............................................. (0.69) (0.57) (0.66) (0.57) (0.27)
------------------------------------------------------------
Redemption fees .................................................. -- c -- c -- c -- --
------------------------------------------------------------
Net asset value, end of year ..................................... $ 9.41 $ 9.36 $ 9.87 $ 9.61 $ 8.58
============================================================

Total return ..................................................... 8.35% 0.50% 9.89% 19.45% 9.65%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of year (000's) .................................. $40,912 $17,532 $22,442 $10,163 $1,724

Ratios to average net assets:

Expenses ........................................................ 0.83% d 0.83% d 0.84% d 0.92% 1.09%

Net investment income ........................................... 2.88% 1.89% 1.35% 1.59% 1.51%

Portfolio turnover rate .......................................... 0.00% e 0.00% e 0.00% e 0.00% e 76.27%

b Based on average daily shares outstanding.

c Amount rounds to less than $0.01 per share.

d Benefit of expense reduction rounds to less than 0.01%.

e See Note 6 regarding investment transactions.

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

Franklin Templeton Global Trust

STATEMENT OF INVESTMENTS, OCTOBER 31, 2006

- ----------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON HARD CURRENCY FUND PRINCIPAL AMOUNT b VALUE
- ----------------------------------------------------------------------------------------------------------------------------------

FOREIGN GOVERNMENT AND AGENCY SECURITIES 36.4%
a Canada Treasury Bills, 11/30/06 - 3/22/07 ..................................... 33,420,000 CAD $ 29,540,322
a Denmark Treasury Bills, 11/01/06 - 2/01/07 .................................... 59,200,000 DKK 10,097,495
a Dutch Treasury Bill, 1/31/07 .................................................. 5,060,000 EUR 6,404,064
a French Treasury Bill, 1/18/07 ................................................. 4,950,000 EUR 6,266,173
a German Treasury Bills, 11/15/06 - 12/13/06 .................................... 8,000,000 EUR 10,214,531
a Norway Treasury Bills, 12/20/06 - 6/20/07 ..................................... 95,740,000 NOK 14,392,179
a Singapore Treasury Bill, 11/30/06 ............................................. 31,270,000 SGD 20,031,559
a Swedish Treasury Bills, 12/20/06 - 9/19/07 .................................... 258,420,000 SEK 35,175,044
---------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES (COST $129,353,875) ............ 132,121,367
---------------
U.S. GOVERNMENT AND AGENCY SECURITIES 63.6%
Federal National Mortgage Association, 2.125%, 10/09/07 ....................... 2,400,000,000 JPY 20,830,128
a Federal Home Loan Bank, 11/01/06 .............................................. 34,849,000 34,849,000
a U.S. Treasury Bills, 11/02/06 - 12/14/06 ...................................... 176,000,000 175,583,727
---------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES (COST $230,813,782) ............... 231,262,855
---------------
TOTAL INVESTMENTS (COST $360,167,657) 100.0% .................................. 363,384,222
NET UNREALIZED LOSS ON FORWARD EXCHANGE CONTRACTS (0.2)% ...................... (579,759)
OTHER ASSETS, LESS LIABILITIES 0.2% ........................................... 556,340
---------------
NET ASSETS 100.0% ............................................................. $ 363,360,803
===============

CURRENCY ABBREVIATIONS

CAD - Canadian Dollar
DKK - Danish Krone
EUR - Euro
JPY - Japanese Yen
NOK - Norwegian Krone
SEK - Swedish Krona
SGD - Singapore Dollar

a The security is traded on a discount basis with no stated coupon rate.

b The principal amount is stated in U.S. dollars unless otherwise indicated.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 15

Franklin Templeton Global Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
October 31, 2006

------------------
FRANKLIN TEMPLETON
HARD CURRENCY FUND
------------------

Assets:
Investments in securities:
Cost .......................................................................... $ 360,167,657
=============
Value ......................................................................... $ 363,384,222
Cash ........................................................................... 5,092
Receivables:
Capital shares sold ........................................................... 1,679,198
Interest ...................................................................... 26,259
Unrealized gain on forward exchange contracts (Note 7) ......................... 3,043,848
-------------
Total assets ............................................................ 368,138,619
-------------
Liabilities:
Payables:
Capital shares redeemed ....................................................... 712,627
Affiliates .................................................................... 327,959
Foreign currency advanced by custodian ......................................... 87,250
Unrealized loss on forward exchange contracts (Note 7) ......................... 3,623,607
Accrued expenses and other liabilities ......................................... 26,373
-------------
Total liabilities ....................................................... 4,777,816
-------------
Net assets, at value ................................................. $ 363,360,803
=============
Net assets consist of:
Paid-in capital ................................................................ $ 357,719,610
Undistributed net investment income ............................................ 5,338,072
Net unrealized appreciation (depreciation) ..................................... 2,637,077
Accumulated net realized gain (loss) ........................................... (2,333,956)
-------------
Net assets, at value ................................................. $ 363,360,803
=============
CLASS A:
Net assets, at value ........................................................... $ 322,448,828
=============
Shares outstanding ............................................................. 34,343,346
=============
Net asset value per share a .................................................... $ 9.39
=============
Maximum offering price per share (net asset value per share / 97.75%) .......... $ 9.61
=============
ADVISOR CLASS:
Net assets, at value ........................................................... $ 40,911,975
=============
Shares outstanding ............................................................. 4,348,323
=============
Net asset value and maximum offering price per share a ......................... $ 9.41
=============

a Redemption price is equal to net asset value less contingent deferred
sales charges, if applicable, and redemption fees retained by the Fund.

16 | The accompanying notes are an integral part of these financial statements.
| Annual Report

Franklin Templeton Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the year ended October 31, 2006

------------------
FRANKLIN TEMPLETON
HARD CURRENCY FUND
------------------

Investment income:
Interest .......................................................................... $ 9,930,132
-------------
Expenses:
Management fees (Note 3a) ......................................................... 1,737,552
Distribution fees (Note 3c)
Class A .......................................................................... 738,515
Transfer agent fees (Note 3e) ..................................................... 257,782
Custodian fees (Note 4) ........................................................... 24,655
Reports to shareholders ........................................................... 46,463
Registration and filing fees ...................................................... 83,550
Professional fees ................................................................. 34,624
Trustees' fees and expenses ....................................................... 11,433
Other ............................................................................. 31,112
-------------
Total expenses ............................................................. 2,965,686
Expense reductions (Note 4) ................................................ (6,874)
-------------
Net expenses ............................................................... 2,958,812
-------------
Net investment income .................................................. 6,971,320
-------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ...................................................................... (364,943)
Foreign currency transactions .................................................... 3,727,119
-------------
Net realized gain (loss) ................................................ 3,362,176
-------------
Net change in unrealized appreciation (depreciation) on:
Investments ...................................................................... 6,359,660
Translation of assets and liabilities denominated in foreign currencies .......... 61
-------------
Net change in unrealized appreciation (depreciation) ...................... 6,359,721
-------------
Net realized and unrealized gain (loss) ............................................ 9,721,897
-------------
Net increase (decrease) in net assets resulting from operations .................... $ 16,693,217
=============

Annual Report |
The accompanying notes are an integral part of these financial statements. | 17

Franklin Templeton Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

---------------------------------
FRANKLIN TEMPLETON
HARD CURRENCY FUND
---------------------------------
YEAR ENDED OCTOBER 31,
2006 2005
---------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income .................................................................... $ 6,971,320 $ 3,511,261
Net realized gain (loss) from investments and foreign currency transactions .............. 3,362,176 10,102,422
Net change in unrealized appreciation (depreciation) on investments and translation of
assets and liabilities denominated in foreign currencies ............................... 6,359,721 (12,803,993)
---------------------------------
Net increase (decrease) in net assets resulting from operations .................... 16,693,217 809,690
---------------------------------
Distributions to shareholders from:
Net investment income and net realized foreign currency gains:
Class A ................................................................................ (14,112,136) (9,731,396)
Advisor Class .......................................................................... (1,424,716) (1,084,586)
Net realized gains:
Class A ................................................................................ -- (1,735,869)
Advisor Class .......................................................................... -- (188,101)
---------------------------------
Total distributions to shareholders ....................................................... (15,536,852) (12,739,952)
---------------------------------

Capital share transactions: (Note 2)
Class A ................................................................................ 131,071,904 (9,971,213)
Advisor Class .......................................................................... 23,434,378 (3,953,900)
---------------------------------
Total capital share transactions .......................................................... 154,506,282 (13,925,113)
---------------------------------

Redemption fees ........................................................................... 3,868 9,614
---------------------------------
Net increase (decrease) in net assets .............................................. 155,666,515 (25,845,761)
Net assets:
Beginning of year ......................................................................... 207,694,288 233,540,049
---------------------------------
End of year ............................................................................... $ 363,360,803 $ 207,694,288
=================================
Undistributed net investment income included in net assets:
End of year ............................................................................... $ 5,338,072 $ 10,369,691
=================================

18 | The accompanying notes are an integral part of these financial statements.
| Annual Report

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS

FRANKLIN TEMPLETON HARD CURRENCY FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Templeton Global Trust (the Trust) is registered under the Investment
Company Act of 1940 (1940 Act) as a non-diversified, open-end investment
company, consisting of one fund, the Franklin Templeton Hard Currency Fund (the
Fund). The Fund offers two classes of shares: Class A and Advisor Class. Each
class of shares differs by its initial sales load, contingent deferred sales
charges, distribution fees, voting rights on matters affecting a single class
and its exchange privilege.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

Securities listed on a securities exchange or on the NASDAQ National Market
System are valued at the last quoted sale price or the official closing price of
the day, respectively. Over-the-counter securities and listed securities for
which there is no reported sale are valued within the range of the most recent
quoted bid and ask prices. Securities that trade in multiple markets or on
multiple exchanges are valued according to the broadest and most representative
market.

Government securities generally trade in the over-the-counter market rather than
on a securities exchange. The Fund may utilize independent pricing services,
quotations from bond dealers, and information with respect to bond and note
transactions, to assist in determining a current market value for each security.
The Fund's pricing services may use valuation models or matrix pricing which
considers information with respect to comparable bond and note transactions,
quotations from bond dealers, or by reference to other securities that are
considered comparable in such characteristics as rating, interest rate and
maturity date, option adjusted spread models, prepayment projections, interest
rate spreads and yield curves, to determine current value.

Foreign securities are valued as of the close of trading on the foreign stock
exchange on which the security is primarily traded, or the NYSE, whichever is
earlier. If no sale is reported at that time, the foreign security will be
valued within the range of the most recent quoted bid and ask prices. The value
is then converted into its U.S. dollar equivalent at the foreign exchange rate
in effect at the close of the NYSE on the day that the value of the foreign
security is determined.

The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the availability (including the reliability) of the value of a portfolio
security held by the

Annual Report | 19

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

Fund. The investment manager monitors price movements following the close of
trading in foreign stock markets through a series of country specific market
proxies (such as baskets of American Depository Receipts, futures contracts and
exchange traded funds). These price movements are measured against established
trigger thresholds for each specific market proxy to assist in determining if an
event has occurred. If such an event occurs, the securities may be valued using
fair value procedures, which may include the use of independent pricing
services. All security valuation procedures are approved by the Trust's Board of
Trustees.

B. FOREIGN CURRENCY TRANSLATION

Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against U.S. dollars on the date of valuation. Purchases and sales of
securities, income and expense items denominated in foreign currencies are
translated into U.S. dollars at the exchange rate in effect on the transaction
date. Occasionally, events may impact the availability or reliability of foreign
exchange rates used to convert the U.S. dollar equivalent value. If such an
event occurs, the foreign exchange rate will be valued at fair value using
procedures established and approved by the Trust's Board of Trustees.

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

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

C. FOREIGN CURRENCY CONTRACTS

When the Fund purchases or sells foreign securities it may enter into foreign
exchange contracts to minimize foreign exchange risk from the trade date to the
settlement date of the transactions. A foreign exchange contract is an agreement
between two parties to exchange different currencies at an agreed upon exchange
rate at a future date. Realized and unrealized gains and losses on these
contracts are included in the Statement of Operations.

20 | Annual Report

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. FOREIGN CURRENCY CONTRACTS (CONTINUED)

The Fund may also enter into forward exchange contracts to hedge against
fluctuations in foreign exchange rates or to gain exposure to certain foreign
currencies. These contracts are valued daily by the Fund and the unrealized
gains or losses on the contracts, as measured by the difference between the
contractual forward foreign exchange rates and the forward rates at the
reporting date, are included in the Statement of Assets and Liabilities.
Realized and unrealized gains and losses on these contracts are included in the
Statement of Operations.

The risks of these contracts include movement in the values of the foreign
currencies relative to the U.S. dollar and the possible inability of the
counterparties to fulfill their obligations under the contracts, which may be in
excess of the amount reflected in the Statement of Assets and Liabilities.

D. INCOME TAXES

No provision has been made for U.S. income taxes because the Fund intends to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute to shareholders substantially all of its taxable income and net
realized gains.

E. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Amortization of
premium and accretion of discount on debt securities are included in interest
income. Distributions to shareholders are recorded on the ex-dividend date and
are determined according to income tax regulations (tax basis). Distributable
earnings determined on a tax basis may differ from earnings recorded in
accordance with accounting principles generally accepted in the United States.
These differences may be permanent or temporary. Permanent differences are
reclassified among capital accounts to reflect their tax character. These
reclassifications have no impact on net assets or the results of operations.
Temporary differences are not reclassified, as they may reverse in subsequent
periods.

Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class. Differences in class-level
expenses may result in payment of different per share distributions by class.

Annual Report | 21

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expenses during the reporting period. Actual results could differ from those
estimates.

G. REDEMPTION FEES

A short term trading redemption fee will be imposed, with some exceptions, on
any Fund shares that are redeemed or exchanged within seven calendar days
following their purchase date. The redemption fee is 2% of the amount redeemed.
Such fees are retained by the Fund and accounted for as an addition to paid-in
capital.

H. GUARANTEES AND INDEMNIFICATIONS

Under the Trust's organizational documents, its officers and trustees are
indemnified by the Trust against certain liabilities arising out of the
performance of their duties to the Trust. Additionally, in the normal course of
business, the Trust enters into contracts with service providers that contain
general indemnification clauses. The Trust's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Trust that have not yet occurred. Currently, the Trust expects the
risk of loss to be remote.

2. SHARES OF BENEFICIAL INTEREST

At October 31, 2006, there were an unlimited number of shares authorized ($0.01
par value). Transactions in the Fund's shares were as follows:

--------------------------------------------------------------
YEAR ENDED OCTOBER 31,
2006 2005
--------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------

CLASS A SHARES:
Shares sold ............................... 24,901,994 $ 231,953,286 13,278,417 $ 129,231,930
Shares issued in reinvestment
of distributions ......................... 1,145,884 10,318,899 981,974 9,491,397
Shares redeemed ........................... (12,063,430) (111,200,281) (15,326,537) (148,694,540)
--------------------------------------------------------------
Net increase (decrease) ................... 13,984,448 $ 131,071,904 (1,066,146) $ (9,971,213)
==============================================================
ADVISOR CLASS SHARES:
Shares sold ............................... 3,161,411 $ 29,746,375 1,390,003 $ 13,693,142
Shares issued in reinvestment
of distributions ......................... 90,400 816,279 98,902 957,665
Shares redeemed ........................... (777,014) (7,128,276) (1,889,275) (18,604,707)
--------------------------------------------------------------
Net increase (decrease) ................... 2,474,797 $ 23,434,378 (400,370) $ (3,953,900)
==============================================================

22 | Annual Report

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

3. TRANSACTIONS WITH AFFILIATES

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

- --------------------------------------------------------------------------------------------------
SUBSIDIARY AFFILIATION
- --------------------------------------------------------------------------------------------------

Franklin Advisers, Inc. (Advisers) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
Franklin Templeton Distributors, Inc. (Distributors) Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

A. MANAGEMENT FEES

The Fund pays an investment management fee to Advisers of 0.65% per year of the
average daily net assets of the Fund.

B. ADMINISTRATIVE FEES

Under an agreement with Advisers, FT Services provides administrative services
to the Fund. The fee is paid by Advisers based on average daily net assets, and
is not an additional expense of the Fund.

C. DISTRIBUTION FEES

The Trust's Board of Trustees has adopted a distribution plan for Class A,
pursuant to Rule 12b-1 under the 1940 Act. Under the Fund's Class A
reimbursement distribution plan, the Fund reimburses Distributors up to 0.45%
per year of Class A's average daily net assets for costs incurred in connection
with the sale and distribution of the Fund's shares. Distributors has set the
current rate at 0.30% per year. Under the Class A reimbursement distribution
plan, costs exceeding the maximum for the current plan year cannot be reimbursed
in subsequent periods.

D. SALES CHARGES/UNDERWRITING AGREEMENTS

Distributors has advised the Fund of the following commission transactions
related to the sales and redemptions of the Fund's shares for the year:

Sales charge retained net of commisions paid to
unaffiliated broker/dealers ......................................... $105,171
Contingent deferred sales charges retained ........................... $ 1,416

E. TRANSFER AGENT FEES

The Fund paid transfer agent fees of $257,782, of which $164,953 was retained by
Investor Services.

Annual Report | 23

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

4. EXPENSE OFFSET ARRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the year ended October 31, 2006, the
custodian fees were reduced as noted in the Statement of Operations.

5. INCOME TAXES

For tax purposes, capital losses may be carried over to offset future capital
gains, if any. At October 31, 2006, the capital loss carryforwards were as
follows:

Capital loss carryforwards expiring in:
2013 ............................................................ $2,143,875
2014 ............................................................ 190,081
----------
$2,333,956
==========

The tax character of distributions paid during the years ended October 31, 2006
and 2005, was as follows:

-------------------------
2006 2005
-------------------------
Distributions paid from:
Ordinary income ................................... $15,536,852 $10,815,964
Long term capital gain ............................ -- 1,923,988
-------------------------
$15,536,852 $12,739,952
=========================

At October 31, 2006, the cost of investments, net unrealized appreciation
(depreciation) and undistributed ordinary income for income tax purposes were as
follows:

Cost of investments ........................................ $ 360,183,510
=============
Unrealized appreciation .................................... $ 3,771,626
Unrealized depreciation .................................... (570,914)
-------------
Net unrealized appreciation (depreciation) ................. $ 3,200,712
=============
Distributable earnings - undistributed ordinary income ..... $ 3,231,196
=============

Net investment income and net realized gains (losses) differ for financial
statement and tax purposes primarily due to differing treatments of foreign
currency transactions, and bond discounts and premiums.

6. INVESTMENT TRANSACTIONS

There were no purchases or sales of investments (other than short term
securities) for the year ended October 31, 2006.

24 | Annual Report

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

7. FORWARD EXCHANGE CONTRACTS

At October 31, 2006, the Fund had the following forward exchange contracts
outstanding:

- ------------------------------------------------------------------------------------------------------------
CONTRACT SETTLEMENT UNREALIZED
CONTRACTS TO BUY: AMOUNT DATE GAIN (LOSS)
- ------------------------------------------------------------------------------------------------------------

31,500,000,000 Indonesian Rupiah ........................... 3,252,452 11/24/06 $ 198,922
1,000,000,000 Korean Won .................................. 1,031,992 11/24/06 29,951
840,000 Polish Zloty ................................ 265,152 11/24/06 12,303
132,000,000 Thailand Baht ............................... 3,331,651 11/24/06 267,875
2,930,598 Australian Dollar ........................... 2,200,000 12/04/06 68,820
34,216,000 Thailand Baht ............................... 910,000 12/04/06 23,074
2,791,880 Polish Zloty ................................ 910,000 12/05/06 12,532
4,800,000 Polish Zloty ................................ 1,500,563 12/14/06 86,021
5,000,000 Singapore Dollar ............................ 3,193,256 12/14/06 25,322
235,000,000 Thailand Baht ............................... 6,052,022 12/22/06 354,361
2,575,000 Korean Won .................................. 2,660,449 12/27/06 76,308
6,900,000 Polish Zloty ................................ 2,155,711 12/27/06 126,044
3,500,000 Singapore Dollar ............................ 2,202,643 12/27/06 51,842
2,750,000 Swiss Franc ................................. 2,166,378 12/27/06 56,430
1,800,000 Polish Zloty ................................ 560,957 1/16/07 34,713
845,000 Australian Dollar ........................... 650,819 2/12/07 3,240
48,906,000 Thailand Baht ............................... 1,300,000 2/12/07 33,180
4,000,000 Polish Zloty ................................ 1,312,767 2/20/07 12,342
8,350,000 Singapore Dollar ............................ 5,345,368 2/26/07 50,083
39,520,000,000 Indonesian Rupiah ........................... 4,146,905 3/01/07 131,366
27,840,000,000 Indonesian Rupiah ........................... 2,900,000 3/02/07 113,502
4,402,925 Polish Zloty ................................ 1,450,000 3/02/07 8,973
55,259,500 Thailand Baht ............................... 1,450,000 3/02/07 56,048
1,020,000 Australian Dollar ........................... 752,454 3/15/07 36,984
7,450,000,000 Indonesian Rupiah ........................... 751,766 3/15/07 53,465
2,375,000 Polish Zloty ................................ 751,154 3/16/07 36,128
8,380,000,000 Korean Won .................................. 8,813,631 3/20/07 115,512
13,420,000 Australian Dollar ........................... 9,848,267 3/21/07 538,065
252,650,000 Korean Won .................................. 266,621 3/26/07 2,637
2,514,355 Polish Zloty ................................ 785,000 3/29/07 48,763
1,822,389 Canadian Dollar ............................. 1,625,000 4/12/07 6,480
1,400,000 Canadian Dollar ............................. 1,244,444 4/19/07 9,151
6,800,000 Singapore Dollar ............................ 4,333,694 4/19/07 71,307
1,991,865 Polish Zloty ................................ 644,554 4/27/07 16,457
5,000,000 Singapore Dollar ............................ 3,214,401 5/17/07 28,878
11,000,000,000 Indonesian Rupiah ........................... 1,175,214 5/18/07 5,030
2,724,300 Polish Zloty ................................ 900,000 5/22/07 4,490
2,500,000,000 Indonesian Rupiah ........................... 265,901 6/01/07 1,889

Annual Report | 25

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

7. FORWARD EXCHANGE CONTRACTS (CONTINUED)

2,700,000 Singapore Dollar ........................... 1,727,668 6/27/07 $ 27,072
6,250,000 Singapore Dollar ........................... 3,984,699 7/11/07 79,872
255,000,000 Japanese Yen ............................... 2,205,716 7/17/07 49,303
7,000,000 Polish Zloty ............................... 2,278,794 7/19/07 47,653
850,000 Singapore Dollar ........................... 550,197 7/30/07 3,083
5,300,000 Canadian Dollar ............................ 4,741,456 10/26/07 28,377
-------------
Unrealized gain on forward exchange contracts .................................... $ 3,043,848
-------------

3,457,960 Swiss Franc ................................ 2,900,000 12/04/06 $ (111,157)
1,110,655 Swiss Franc ................................ 910,000 12/05/06 (14,171)
700,000,000 Japanese Yen ............................... 6,263,982 12/14/06 (241,066)
9,300,000 Norwegian Krone ............................ 1,497,392 12/14/06 (71,139)
225,000,000 Japanese Yen ............................... 1,998,206 1/09/07 (55,378)
6,000,000,000 Indonesian Rupiah .......................... 661,522 1/29/07 (9,702)
4,650,000,000 Korean Won ................................. 4,956,036 1/29/07 (9,227)
512,800,000 Japanese Yen ............................... 4,642,825 2/01/07 (201,757)
656,169,600 Japanese Yen ............................... 6,000,000 2/09/07 (311,506)
6,800,000 Canadian Dollar ............................ 6,236,244 2/12/07 (159,025)
3,861,000 Polish Zloty ............................... 1,300,000 2/12/07 (21,209)
27,820,000 Swedish Krona .............................. 3,900,292 2/12/07 (21,904)
834,892,500 Japanese Yen ............................... 7,800,000 2/13/07 (558,429)
1,026,815,500 Japanese Yen ............................... 9,675,000 2/20/07 (760,812)
57,000,000 Japanese Yen ............................... 498,513 2/28/07 (3,169)
3,575,000 Swedish Krona .............................. 500,070 2/28/07 (1,239)
465,840,000 Korean Won ................................. 496,764 3/02/07 (682)
82,500,000 Japanese Yen ............................... 746,856 3/15/07 (28,537)
900,000 Swiss Franc ................................ 748,877 3/15/07 (16,272)
5,500,000 Swiss Franc ................................ 4,594,437 3/16/07 (117,012)
179,012,800 Japanese Yen ............................... 1,600,000 3/22/07 (39,957)
87,857,200 Japanese Yen ............................... 785,000 3/29/07 (18,665)
7,250,000 Norwegian Krone ............................ 1,172,096 3/29/07 (54,772)
110,900,000 Japanese Yen ............................... 1,000,000 4/10/07 (31,186)
178,636,250 Japanese Yen ............................... 1,625,000 4/12/07 (64,047)
277,687,500 Japanese Yen ............................... 2,500,000 4/16/07 (72,275)
369,600,000 Japanese Yen ............................... 3,300,000 4/19/07 (67,472)
372,801,000 Japanese Yen ............................... 3,300,000 4/20/07 (39,057)
185,559,000 Japanese Yen ............................... 1,650,000 4/26/07 (25,638)
135,564,000 Japanese Yen ............................... 1,200,000 4/27/07 (13,136)
95,200,000 Japanese Yen ............................... 850,000 5/01/07 (16,104)
380,966,250 Japanese Yen ............................... 3,450,000 5/07/07 (110,493)

26 | Annual Report

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

7. FORWARD EXCHANGE CONTRACTS (CONTINUED)

24,287,655 Swedish Krona ......................... 3,450,000 5/07/07 $ (48,573)
193,917,500 Japanese Yen .......................... 1,750,000 5/09/07 (49,722)
199,656,000 Japanese Yen .......................... 1,800,000 5/10/07 (49,191)
97,475,000 Japanese Yen .......................... 875,000 5/14/07 (19,808)
196,455,000 Japanese Yen .......................... 1,750,000 5/16/07 (25,987)
3,500,000 Canadian Dollar ....................... 3,142,113 5/17/07 (5,630)
20,000,000 Swedish Krona ......................... 2,824,859 5/18/07 (22,521)
6,357,960 Swedish Krona ......................... 900,000 5/22/07 (8,982)
168,570,000 Japanese Yen .......................... 1,500,000 5/24/07 (19,234)
56,140,000 Japanese Yen .......................... 500,000 5/29/07 (6,546)
3,539,870 Swedish Krona ......................... 500,000 5/29/07 (3,759)
3,300,000 Canadian Dollar ....................... 2,978,071 6/26/07 (17,492)
1,620,000 Canadian Dollar ....................... 1,463,415 6/27/07 (9,999)
290,000,000 Japanese Yen .......................... 2,586,514 6/27/07 (28,339)
3,250,000 Norwegian Krone ....................... 504,862 6/27/07 (2,399)
1,901,280 Canadian Dollar ....................... 1,721,550 6/28/07 (15,730)
------------
$ (3,600,107)
------------

- ------------------------------------------------------------------------------------------------------------
CONTRACT SETTLEMENT UNREALIZED
CONTRACTS TO SELL: AMOUNT DATE GAIN (LOSS)
- ------------------------------------------------------------------------------------------------------------

20,000,000 Thailand Baht ......................... 521,648 2/20/07 $ (23,500)
------------
Unrealized loss on forward exchange contracts .................................... $ 3,623,607)
------------
Net unrealized loss on forward exchange contracts .............................. $ (579,759)
============

8. CONCENTRATION OF RISK

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

Annual Report | 27

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

9. REGULATORY MATTERS

As part of various investigations by a number of federal, state, and foreign
regulators and governmental entities, relating to certain practices in the
mutual fund industry, including late trading, market timing and marketing
support payments to securities dealers who sell fund shares, Franklin Resources,
Inc. and certain of its subsidiaries (collectively, the "Company"), entered into
settlements with certain of those regulators.

Specifically, the Company entered into settlements with the Securities and
Exchange Commission ("SEC") concerning market timing (the "August 2, 2004 SEC
Order") and marketing support payments to securities dealers who sell fund
shares (the "December 13, 2004 SEC Order") and with the California Attorney
General's Office ("CAGO") concerning marketing support payments to securities
dealers who sell fund shares (the "CAGO Settlement"). Under the terms of the
settlements with the SEC and the CAGO, the Company retained an Independent
Distribution Consultant ("IDC") to develop separate plans for the distribution
of the respective settlement monies. The CAGO approved the distribution plan
pertaining to the distribution of the monies owed under the CAGO settlement
agreement, and in March 2005, the disbursement of monies to the relevant funds
in accordance with the terms and conditions of that settlement was completed.
The Fund did not participate in the CAGO Settlement.

On June 23, 2006, the SEC approved the IDC's proposed plan of distribution
arising from the December 13, 2004 SEC Order and disbursement of the settlement
monies to the designated funds in accordance with the terms and conditions of
the SEC's order and the plan was completed in September 2006. The Fund did not
participate in the December 13, 2004 SEC Order.

The IDC has also completed a proposed Plan of Distribution under the August 2,
2004 SEC Order resolving the SEC's market timing investigation and has submitted
that plan to the SEC staff, where it is under review. The SEC has announced the
following expected schedule with respect to the market timing Plan of
Distribution. The SEC anticipates that Notice of the Plan will be published on
or after November 15, 2006. After publication and comment, the proposed
Distribution Plan will be submitted to the SEC for approval. When the SEC
approves the proposed Distribution Plan, with modifications as appropriate,
distributions will begin pursuant to that Plan.

In addition, the Company, as well as most of the mutual funds within Franklin
Templeton Investments and certain current or former officers, directors, and/or
employees, have been named in private lawsuits (styled as shareholder class
actions, or as derivative actions on behalf of either the named funds or
Franklin Resources, Inc.) relating to the industry practices referenced above,
as well as to allegedly excessive advisory fees, commissions, and/or 12b-1 fees.
The lawsuits were filed in different courts throughout the country. Many of
those suits are now pending in a multi-district litigation in the United States
District Court for the District of Maryland.

28 | Annual Report

Franklin Templeton Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

9. REGULATORY MATTERS (CONTINUED)

The Company and fund management strongly believe that the claims made in each of
the private lawsuits referenced above are without merit and intend to defend
against them vigorously. The Company cannot predict with certainty the eventual
outcome of these lawsuits, nor whether they will have a material negative impact
on the Company. If it is determined that the Company bears responsibility for
any unlawful or inappropriate conduct that caused losses to the Fund, it is
committed to making the Fund or its shareholders whole, as appropriate.

10. NEW ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
Interpretation of FASB Statement No. 109" ("FIN 48"), which clarifies the
accounting for uncertainty in tax positions taken or expected to be taken in a
tax return. FIN 48 provides guidance on the measurement, recognition,
classification and disclosure of tax positions, along with accounting for the
related interest and penalties. FIN 48 is effective for fiscal years beginning
after December 15, 2006, and is to be applied to all open tax years as of the
date of effectiveness. The Fund is currently evaluating the impact, if any, of
applying the various provisions of FIN 48.

In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement"
("SFAS 157"), which defines fair value, establishes a framework for measuring
fair value, and expands disclosures about fair value measurements. SFAS 157 is
effective for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. The Fund believes the adoption of SFAS 157
will have no material impact on its financial statements.

Annual Report | 29

Franklin Templeton Global Trust

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FRANKLIN TEMPLETON HARD CURRENCY
FUND

In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Franklin Templeton Hard Currency
Fund (the "Fund") at October 31, 2006, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). 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, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2006 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
December 19, 2006

30 | Annual Report

Franklin Templeton Global Trust

TAX DESIGNATION (UNAUDITED)

FRANKLIN TEMPLETON HARD CURRENCY FUND

Under Section 871(k)(1)(C) of the Internal Revenue Code (Code), the Fund
designates the maximum amount allowable but no less than $6,720,338 as interest
related dividends for purposes of the tax imposed under Section 871(a)(1)(A) of
the Code for the fiscal year ended October 31, 2006.

Annual Report | 31

Franklin Templeton Global Trust

BOARD MEMBERS AND OFFICERS

The name, year of birth and address of the officers and board members, as well
as their affiliations, positions held with the Trust, principal occupations
during the past five years and number of portfolios overseen in the Franklin
Templeton Investments fund complex are shown below. Each board member will serve
until that person's successor is appointed and qualified.

INDEPENDENT BOARD MEMBERS

- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS IN
NAME, YEAR OF BIRTH LENGTH OF FUND COMPLEX OVERSEEN
AND ADDRESS POSITION TIME SERVED BY BOARD MEMBER* OTHER DIRECTORSHIPS HELD
- ------------------------------------------------------------------------------------------------------------------------------------

HARRIS J. ASHTON (1932) Trustee Since 1993 142 Director, Bar-S Foods (meat packing
One Franklin Parkway company).
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Director of various companies; and FORMERLY, Director, RBC Holdings, Inc. (bank holding company) (until 2002); and President, Chief
Executive Officer and Chairman of the Board, General Host Corporation (nursery and craft centers) (until 1998).
- ------------------------------------------------------------------------------------------------------------------------------------
ROBERT F. CARLSON (1928) Trustee Since 2003 57 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice President, senior member and past President, Board of Administration, California Public Employees Retirement Systems (CALPERS);
and FORMERLY, member and Chairman of the Board, Sutter Community Hospitals; member, Corporate Board, Blue Shield of California; and
Chief Counsel, California Department of Transportation.
- ------------------------------------------------------------------------------------------------------------------------------------
EDITH E. HOLIDAY (1952) Trustee Since 2005 143 Director, Hess Corporation
One Franklin Parkway (formerly, Amerada Hess
San Mateo, CA 94403-1906 Corporation) (exploration and
refining of oil and gas), H.J.
Heinz Company (processed foods and
allied products), RTI International
Metals, Inc. (manufacture and
distribution of titanium), Canadian
National Railway (railroad) and
White Mountains Insurance Group,
Ltd. (holding company).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Director or Trustee of various companies and trusts; and FORMERLY, Assistant to the President of the United States and Secretary of
the Cabinet (1990-1993); General Counsel to the United States Treasury Department (1989-1990); and Counselor to the Secretary and
Assistant Secretary for Public Affairs and Public Liaison-United States Treasury Department (1988-1989).
- ------------------------------------------------------------------------------------------------------------------------------------

32 | Annual Report

FRANK W.T. LAHAYE (1929) Trustee Since 1993 116 Director, Center for
One Franklin Parkway Creative Land Recycling
San Mateo, CA 94403-1906 (redevelopment).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
General Partner, Las Olas L.P. (Asset Management); and formerly, Chairman, Peregrine Venture Management Company (venture capital).
- ------------------------------------------------------------------------------------------------------------------------------------
JOHN B. WILSON (1959) Trustee Since February 46 None
One Franklin Parkway 2006
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President and Founder, Hyannis Port Capital, Inc. (real estate and private equity investing); serves on private and non-profit
boards; and formerly, Chief Operating Officer and Executive Vice President, Gap, Inc. (retail) (1996-2000); Chief Financial Officer
and Executive Vice President - Finance and Strategy, Staples, Inc. (office supplies) (1992-1996); Executive Vice President -
Corporate Planning, Northwest Airlines, Inc. (airlines) (1990-1992); and Vice President and Partner, Bain & Company (1986-1990).
- ------------------------------------------------------------------------------------------------------------------------------------

INTERESTED BOARD MEMBERS AND OFFICERS

**CHARLES B. JOHNSON (1933) Trustee and Since 1993 142 None
One Franklin Parkway Chairman of
San Mateo, CA 94403-1906 the Board

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Chairman of the Board, Member - Office of the Chairman and Director, Franklin Resources, Inc.; Vice President, Franklin Templeton
Distributors, Inc.; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin
Resources, Inc. and of 41 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
**RUPERT H. JOHNSON, JR. (1940) Trustee, Trustee since 126 None
One Franklin Parkway President and 1993, President
San Mateo, CA 94403-1906 Chief Executive and Chief
Officer - Executive Officer -
Investment Investment
Management Management
since 2002

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice Chairman, Member - Office of the Chairman and Director, Franklin Resources, Inc.; Vice President and Director, Franklin
Templeton Distributors, Inc.; Director, Franklin Advisers, Inc.; Senior Vice President, Franklin Advisory Services, LLC; and officer
and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the
investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 33

HARMON E. BURNS (1945) Vice President Since 1993 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice Chairman, Member - Office of the Chairman and Director, Franklin Resources, Inc.; Vice President and Director, Franklin
Templeton Distributors, Inc.; Executive Vice President, Franklin Advisers, Inc.; and officer and/or director or trustee, as the case
may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton
Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JAMES M. DAVIS (1952) Chief Chief Compliance Not Applicable Not Applicable
One Franklin Parkway Compliance Officer since 2004
San Mateo, CA 94403-1906 Officer and and Vice
Vice President President - AML
- AML Compliance since
Compliance February 2006

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Director, Global Compliance, Franklin Resources, Inc.; officer of 46 of the investment companies in Franklin Templeton Investments;
and FORMERLY, Director of Compliance, Franklin Resources, Inc. (1994-2001).
- ------------------------------------------------------------------------------------------------------------------------------------
LAURA FERGERSON (1962) Treasurer Since 2004 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice President, Franklin Templeton Services, LLC; officer of 30 of the investment companies in Franklin Templeton Investments; and
FORMERLY, Director and member of Audit and Valuation Committees, Runkel Funds, Inc. (2003-2004); Assistant Treasurer of most of the
investment companies in Franklin Templeton Investments (1997-2003); and Vice President, Franklin Templeton Services, LLC
(1997-2003).
- ------------------------------------------------------------------------------------------------------------------------------------
JIMMY D. GAMBILL (1947) Senior Vice Since 2002 Not Applicable Not Applicable
500 East Broward Blvd. President and
Suite 2100 Chief Executive
Fort Lauderdale, FL 33394-3091 Officer -
Finance and
Administration

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President, Franklin Templeton Services, LLC; Senior Vice President, Templeton Worldwide, Inc.; and officer of 46 of the investment
companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
DAVID P. GOSS (1947) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Senior Associate General Counsel, Franklin Templeton Investments; officer and director of one of the subsidiaries of Franklin
Resources, Inc.; and officer of 46 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

34 | Annual Report

BARBARA J. GREEN (1947) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice President, Deputy General Counsel and Secretary, Franklin Resources, Inc.; Secretary and Senior Vice President, Templeton
Worldwide, Inc.; Secretary, Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Investment Advisory Services, LLC,
Franklin Mutual Advisers, LLC, Franklin Templeton Alternative Strategies, Inc., Franklin Templeton Investor Services, LLC, Franklin
Templeton Services, LLC, Franklin Templeton Distributors, Inc., Templeton Investment Counsel, LLC, and Templeton/Franklin Investment
Services, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 46 of the investment companies in
Franklin Templeton Investments; and FORMERLY, Deputy Director, Division of Investment Management, Executive Assistant and Senior
Advisor to the Chairman, Counselor to the Chairman, Special Counsel and Attorney Fellow, U.S. Securities and Exchange Commission
(1986-1995); Attorney, Rogers & Wells (until 1986); and Judicial Clerk, U.S. District Court (District of Massachusetts) (until
1979).
- ------------------------------------------------------------------------------------------------------------------------------------
KAREN L. SKIDMORE (1952) Vice President Vice President Not Applicable Not Applicable
One Franklin Parkway and Secretary since March 2006
San Mateo, CA 94403-1906 and Secretary
since May 2006

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Senior Associate General Counsel, Franklin Templeton Investments; Vice President and Secretary, Templeton Funds Annuity Company; and
officer of 30 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
CRAIG S. TYLE (1960) Vice President Since 2005 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
General Counsel and Executive Vice President, Franklin Resources, Inc.; officer of 46 of the investment companies in Franklin
Templeton Investments; and FORMERLY, Partner, Shearman & Sterling, LLP (2004-2005); and General Counsel, Investment Company
Institute (ICI) (1997-2004).
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 35

GALEN G. VETTER (1951) Chief Financial Since 2004 Not Applicable Not Applicable
500 East Broward Blvd. Officer and
Suite 2100 Chief
Fort Lauderdale, FL 33394-3091 Accounting
Officer

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Senior Vice President, Franklin Templeton Services, LLC; officer of 46 of the investment companies in Franklin Templeton
Investments; and FORMERLY, Managing Director, RSM McGladrey, Inc. (1999-2004); and Partner, McGladrey & Pullen, LLP (1979-1987 and
1991-2004).
- ------------------------------------------------------------------------------------------------------------------------------------

* We base the number of portfolios on each separate series of the U.S.
registered investment companies within the Franklin Templeton Investments
fund complex. These portfolios have a common investment manager or
affiliated investment managers.

** Charles B. Johnson and Rupert H. Johnson, Jr. are considered to be
interested persons of the Trust under the federal securities laws due to
their positions as officers and directors and major shareholders of
Franklin Resources, Inc., which is the parent company of the Fund's
investment manager and distributor.

Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are brothers.

Note 2: Prior to October 31, 2006, Mr. S. Joseph Fortunato and Mr. Gordon S.
Macklin each ceased to be a trustee of the Trust.

Note 3: Prior to October 31, 2006, Michael O. Magdol and Steven J. Gray ceased
to be officers of the Trust.

Note 4: Subsequent to October 31, 2006, Harmon E. Burns ceased to be an officer
of the Trust.

THE SARBANES-OXLEY ACT OF 2002 AND RULES ADOPTED BY THE SECURITIES AND EXCHANGE
COMMISSION REQUIRE THE FUND TO DISCLOSE WHETHER THE FUND'S AUDIT COMMITTEE
INCLUDES AT LEAST ONE MEMBER WHO IS AN AUDIT COMMITTEE FINANCIAL EXPERT WITHIN
THE MEANING OF SUCH ACT AND RULES. THE FUND'S BOARD OF TRUSTEES HAS DETERMINED
THAT THERE IS AT LEAST ONE SUCH FINANCIAL EXPERT ON THE AUDIT COMMITTEE AND HAS
DESIGNATED FRANK W.T. LAHAYE AS ITS AUDIT COMMITTEE FINANCIAL EXPERT. THE BOARD
BELIEVES THAT MR. LAHAYE QUALIFIES AS SUCH AN EXPERT IN VIEW OF HIS EXTENSIVE
BUSINESS BACKGROUND AND EXPERIENCE, INCLUDING SERVICE AS PRESIDENT AND DIRECTOR
OF MCCORMICK SELPH ASSOCIATES FROM 1954 THROUGH 1965; DIRECTOR AND CHAIRMAN OF
TELEDYNE CANADA LTD. FROM 1966 THROUGH 1971; DIRECTOR AND CHAIRMAN OF
QUARTERDECK CORPORATION FROM 1982 THROUGH 1998; AND SERVICES AS A DIRECTOR OF
VARIOUS OTHER PUBLIC COMPANIES INCLUDING U.S. TELEPHONE INC. (1981-1984), FISHER
IMAGING INC. (1991-1998) AND DIGITAL TRANSMISSIONS SYSTEMS (1995-1999). IN
ADDITION, MR. LAHAYE SERVED FROM 1981 TO 2000 AS A DIRECTOR AND CHAIRMAN OF
PEREGRINE VENTURE MANAGEMENT CO., A VENTURE CAPITAL FIRM, AND HAS BEEN A MEMBER
AND CHAIRMAN OF THE FUND'S AUDIT COMMITTEE SINCE ITS INCEPTION. AS A RESULT OF
SUCH BACKGROUND AND EXPERIENCE, THE BOARD OF TRUSTEES BELIEVES THAT MR. LAHAYE
HAS ACQUIRED AN UNDERSTANDING OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND
FINANCIAL STATEMENTS, THE GENERAL APPLICATION OF SUCH PRINCIPLES IN CONNECTION
WITH THE ACCOUNTING ESTIMATES, ACCRUALS AND RESERVES, AND ANALYZING AND
EVALUATING FINANCIAL STATEMENTS THAT PRESENT A BREADTH AND LEVEL OF COMPLEXITY
OF ACCOUNTING ISSUES GENERALLY COMPARABLE TO THOSE OF THE FUND, AS WELL AS AN
UNDERSTANDING OF INTERNAL CONTROLS AND PROCEDURES FOR FINANCIAL REPORTING AND AN
UNDERSTANDING OF AUDIT COMMITTEE FUNCTIONS. MR. LAHAYE IS AN INDEPENDENT TRUSTEE
AS THAT TERM IS DEFINED UNDER THE RELEVANT SECURITIES AND EXCHANGE COMMISSION
RULES AND RELEASES.

THE STATEMENT OF ADDITIONAL INFORMATION (SAI) INCLUDES ADDITIONAL INFORMATION
ABOUT THE BOARD MEMBERS AND IS AVAILABLE, WITHOUT CHARGE, UPON REQUEST.
SHAREHOLDERS MAY CALL 1-800/DIAL BEN (1-800/342-5236) TO REQUEST THE SAI.

36 | Annual Report

Franklin Templeton Global Trust

SHAREHOLDER INFORMATION

FRANKLIN TEMPLETON HARD CURRENCY FUND

PROXY VOTING POLICIES AND PROCEDURES

The Trust has established Proxy Voting Policies and Procedures ("Policies") that
the Trust uses to determine how to vote proxies relating to portfolio
securities. Shareholders may view the Trust's complete Policies online at
franklintempleton.com. Alternatively, shareholders may request copies of the
Policies free of charge by calling the Proxy Group collect at 1-954/527-7678 or
by sending a written request to: Franklin Templeton Companies, LLC, 500 East
Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33394, Attention: Proxy
Group. Copies of the Trust's proxy voting records are also made available online
at franklintempleton.com and posted on the U.S. Securities and Exchange
Commission's website at sec.gov and reflect the most recent 12-month period
ended June 30.

QUARTERLY STATEMENT OF INVESTMENTS

The Trust files a complete statement of investments with the U.S. Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
website at sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800/SEC-0330.

Annual Report | 37

This page intentionally left blank.

Literature Request

LITERATURE REQUEST. TO RECEIVE A BROCHURE AND PROSPECTUS, PLEASE CALL US AT
1-800/DIAL BEN(R) (1-800/342-5236) OR VISIT FRANKLINTEMPLETON.COM. INVESTORS
SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT GOALS, RISKS, CHARGES AND EXPENSES
BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION. PLEASE
CAREFULLY READ THE PROSPECTUS BEFORE INVESTING. To ensure the highest quality of
service, we may monitor, record and access telephone calls to or from our
service departments. These calls can be identified by the presence of a regular
beeping tone.

FRANKLIN TEMPLETON INVESTMENTS

INTERNATIONAL

Mutual European Fund
Templeton BRIC Fund
Templeton China World Fund
Templeton Developing Markets Trust
Templeton Foreign Fund
Templeton Foreign Smaller Companies Fund
Templeton International (Ex EM) Fund

GLOBAL

Mutual Discovery Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund
Templeton Growth Fund
Templeton World Fund

GROWTH

Franklin Aggressive Growth Fund
Franklin Capital Growth Fund
Franklin Flex Cap Growth Fund
Franklin Small-Mid Cap Growth Fund
Franklin Small Cap Growth Fund II 1

VALUE

Franklin Balance Sheet Investment Fund 2
Franklin Equity Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund 2
Franklin MidCap Value Fund
Franklin Small Cap Value Fund
Mutual Beacon Fund
Mutual Qualified Fund
Mutual Recovery Fund 3
Mutual Shares Fund

BLEND

Franklin Balanced Fund
Franklin Blue Chip Fund
Franklin Convertible Securities Fund
Franklin Growth Fund
Franklin Rising Dividends Fund
Franklin U.S. Long-Short Fund

SECTOR

Franklin Biotechnology Discovery Fund
Franklin DynaTech Fund
Franklin Global Communications Fund
Franklin Global Health Care Fund
Franklin Global Real Estate Fund
Franklin Gold and Precious Metals Fund
Franklin Natural Resources Fund
Franklin Real Estate Securities Fund
Franklin Technology Fund
Franklin Utilities Fund
Mutual Financial Services Fund

ASSET ALLOCATION

Franklin Templeton Corefolio Allocation Fund
Franklin Templeton Founding Funds Allocation Fund
Franklin Templeton Perspectives Allocation Fund

TARGET FUNDS

Franklin Templeton Conservative Target Fund
Franklin Templeton Growth Target Fund
Franklin Templeton Moderate Target Fund

RETIREMENT TARGET FUNDS

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

INCOME

Franklin Adjustable U.S. Government Securities Fund 4
Franklin Floating Rate Daily Access Fund
Franklin High Income Fund 5
Franklin Income Fund
Franklin Limited Maturity U.S. Government Securities Fund 4
Franklin Low Duration Total Return Fund
Franklin Real Return Fund
Franklin Strategic Income Fund
Franklin Strategic Mortgage Portfolio
Franklin Templeton Hard Currency Fund
Franklin Total Return Fund
Franklin U.S. Government Securities Fund 4
Templeton Global Bond Fund
Templeton Income Fund

TAX-FREE INCOME 6

NATIONAL FUNDS

Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund 7

LIMITED-TERM FUNDS

California Limited-Term Tax-Free Income Fund
Federal Limited-Term Tax-Free Income Fund
New York Limited-Term Tax-Free Income Fund

INTERMEDIATE-TERM FUNDS

California Intermediate-Term Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
New York Intermediate-Term Tax-Free Income Fund

STATE-SPECIFIC

Alabama Michigan 7
Arizona Minnesota 7
California 8 Missouri
Colorado New Jersey
Connecticut New York 8
Florida 8 North Carolina
Georgia Ohio 7
Kentucky Oregon
Louisiana Pennsylvania
Maryland Tennessee
Massachusetts 7 Virginia

INSURANCE FUNDS

Franklin Templeton Variable Insurance Products Trust 9

1. The fund is closed to new investors. Existing shareholders can continue
adding to their accounts.

2. The fund is only open to existing shareholders and select retirement
plans.

3. The fund is a continuously offered, closed-end fund. Shares may be
purchased daily; there is no daily redemption. However, each quarter,
pending board approval, the fund will authorize the repurchase of 5%-25%
of the outstanding number of shares. Investors may tender all or a portion
of their shares during the tender period.

4. An investment in the fund is neither insured nor guaranteed by the U.S.
government or by any other entity or institution.

5. Effective 10/1/06, Franklin's AGE High Income Fund changed its name to
Franklin High Income Fund. The fund's investment goal and strategy
remained the same.

6. For investors subject to the alternative minimum tax, a small portion of
fund dividends may be taxable. Distributions of capital gains are
generally taxable.

7. Portfolio of insured municipal securities.

8. These funds are available in two or more variations, including long-term
portfolios, portfolios of insured securities, a high-yield portfolio (CA)
and limited-term, intermediate-term and money market portfolios (CA and
NY).

9. The funds of the Franklin Templeton Variable Insurance Products Trust are
generally available only through insurance company variable contracts.

09/06 Not part of the annual report

[LOGO](R)
FRANKLIN TEMPLETON One Franklin Parkway
INVESTMENTS San Mateo, CA 94403-1906

o WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL?
Eligible shareholders can sign up for eDelivery at
franklintempleton.com. See inside for details.

ANNUAL REPORT AND SHAREHOLDER LETTER

FRANKLIN TEMPLETON HARD CURRENCY FUND

INVESTMENT MANAGER

Franklin Advisers, Inc.

DISTRIBUTOR

Franklin Templeton Distributors, Inc.
1-800/DIAL BEN(R)
franklintempleton.com

SHAREHOLDER SERVICES

1-800/632-2301

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

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

412 A2006 12/06

ITEM 2. CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics that applies to its principal
executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a copy
of its code of ethics that applies to its principal executive officers and
principal financial and accounting officer.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

(a)(1) The Registrant has an audit committee financial expert serving on its
audit committee.

(2) The audit committee financial expert is Frank W. T. LaHaye and he is
"independent" as defined under the relevant Securities and Exchange Commission
Rules and Releases.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services
rendered by the principal accountant for the audit of the registrant's annual
financial statements or for services that are normally provided by the principal
accountant in connection with statutory and regulatory filings or engagements
were $29,658 for the fiscal year ended October 31, 2006 and $21,905 for the
fiscal year ended October 31, 2005.

(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related
services rendered by the principal accountant to the registrant that are
reasonably related to the performance of the audit of the registrant's financial
statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related
services rendered by the principal accountant to the registrant's investment
adviser and any entity controlling, controlled by or under common control with
the investment adviser that provides ongoing services to the registrant that are
reasonably related to the performance of the audit of their financial
statements.

(c) Tax Fees
There were no fees paid to the principal accountant for professional services
rendered by the principal accountant to the registrant for tax compliance, tax
advice and tax planning.

There were no fees paid to the principal accountant for professional services
rendered by the principal accountant to the registrant's investment adviser and
any entity controlling, controlled by or under common control with the
investment adviser that provides ongoing services to the registrant for tax
compliance, tax advice and tax planning.

(d) All Other Fees
The aggregate fees paid to the principal accountant for products and services
rendered by the principal accountant to the registrant not reported in
paragraphs (a)-(c) of Item 4 were $114 for the fiscal year ended October 31,
2006 and $0 for the fiscal year ended October 31, 2005. The services for which
these fees were paid included review of materials provided to the fund Board in
connection with the investment management contract renewal process.

The aggregate fees paid to the principal accountant for products and services
rendered by the principal accountant to the registrant's investment adviser and
any entity controlling, controlled by or under common control with the
investment adviser that provides ongoing services to the registrant not reported
in paragraphs (a)-(c) of Item 4 were $175,747 for the fiscal year ended October
31, 2006 and $4,500 for the fiscal year ended October 31, 2005. The services for
which these fees were paid included review of materials provided to the fund
Board in connection with the investment management contract renewal process and
the review of the ICI transfer agent survey.

(e) (1) The registrant's audit committee is directly responsible for approving
the services to be provided by the auditors, including:

(i) pre-approval of all audit and audit related services;

(ii) pre-approval of all non-audit related services to be provided to the
Fund by the auditors;

(iii)pre-approval of all non-audit related services to be provided to the
registrant by the auditors to the registrant's investment adviser or to any
entity that controls, is controlled by or is under common control with the
registrant's investment adviser and that provides ongoing services to the
registrant where the non-audit services relate directly to the operations or
financial reporting of the registrant; and

(iv) establishment by the audit committee, if deemed necessary or
appropriate, as an alternative to committee pre-approval of services to be
provided by the auditors, as required by paragraphs (ii) and (iii) above, of
policies and procedures to permit such services to be pre-approved by other
means, such as through establishment of guidelines or by action of a designated
member or members of the committee; provided the policies and procedures are
detailed as to the particular service and the committee is informed of each
service and such policies and procedures do not include delegation of audit
committee responsibilities, as contemplated under the Securities Exchange Act of
1934, to management; subject, in the case of (ii) through (iv), to any waivers,
exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs
(b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services
rendered by the principal accountant to the registrant and the registrant's
investment adviser and any entity controlling, controlled by or under common
control with the investment adviser that provides ongoing services to the
registrant were $175,861 for the fiscal year ended October 31, 2006 and $4,500
for the fiscal year ended October 31, 2005.

(h) The registrant's audit committee of the board has considered whether the
provision of non-audit services that were rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal accountant's
independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. N/A

ITEM 6. SCHEDULE OF INVESTMENTS. N/A

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES. N/A

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT
COMPANIES. N/A

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS. N/A

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have
been no changes to the procedures by which shareholders may recommend nominees
to the Registrant's Board of Trustees that would require disclosure herein.

ITEM 11. CONTROLS AND PROCEDURES.
(A) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form
N-CSR, the Registrant had carried out an evaluation, under the supervision and
with the participation of the Registrant's management, including the
Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.

(B) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Shareholder Report on Form N-CSR.

ITEM 12. EXHIBITS.

(a) (1) Code of Ethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN TEMPLETON GLOBAL TRUST

By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date December 27, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date December 27, 2006

By /S/GALEN G. VETTER
------------------
Galen G. Vetter
Chief Financial Officer
Date December 27, 2006