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

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-7038
--------

The Money Market Portfolios
---------------------------
(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)

Murray L. Simpson, One Franklin Parkway, San Mateo, CA 94403-1906
-----------------------------------------------------------------
(Name and address of agent for service)

Registrant's telephone number, including area code: (650) 312-2000
--------------

Date of fiscal year end: 06/30
-----

Date of reporting period: 12/31/03
--------

Item 1. Reports to Stockholders.

Semiannual Report

The Money Market Portfolios

FINANCIAL HIGHLIGHTS

THE MONEY MARKET PORTFOLIO

------------------------------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 2003 YEAR ENDED JUNE 30,
(UNAUDITED) 2003 2002 2001 2000 1999
------------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)
Net asset value, beginning of
period .................................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------
Income from investment operations -
net investment income ................... .005 .014 .026 .059 .056 .051
Less distributions from net investment
income .................................. (.005) (.014) (.026) (.059) (.056) (.051)
------------------------------------------------------------------------------------
Net asset value, end of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====================================================================================

Total return a ........................... .47% 1.41% 2.63% 6.08% 5.75% 5.18%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ........ $5,518,199 $5,331,200 $4,734,196 $4,490,919 $4,144,043 $3,672,404
Ratios to average net assets:
Expenses ................................ .15% b .15% .15% .15% .15% .15%
Expenses excluding waiver by
affiliate .............................. .15% b .15% .16% .16% .16% .15%
Net investment income ................... .94% b 1.39% 2.56% 5.91% 5.65% 5.04%

aTotal return is not annualized for periods less than one year.
bAnnualized.

Semiannual Report | 17

The Money Market Portfolios

STATEMENT OF INVESTMENTS, DECEMBER 31, 2003 (UNAUDITED)

- ----------------------------------------------------------------------------------------------------------------------------
THE MONEY MARKET PORTFOLIO PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------------

CERTIFICATES OF DEPOSIT 39.9%
Australia & New Zealand Banking Group, New York Branch, 1.08% - 1.085%,
1/21/04 - 3/04/04 ................................................................. $ 50,000,000 $ 50,000,357
Bank of Montreal, Chicago Branch, 1.08% - 1.133%,
2/18/04 - 4/30/04 ................................................................. 150,000,000 150,001,490
Bank of Nova Scotia, Portland Branch, 1.08%, 1/21/04 - 2/20/04 ..................... 150,000,000 150,000,000
Banque Nationale De Paris, New York Branch, 1.08% - 1.35%,
1/14/04 - 4/13/04 ................................................................. 150,000,000 150,000,560
Barclays Bank PLC, New York Branch, 1.09% - 1.10%, 3/05/04 -
4/09/04 ........................................................................... 100,000,000 100,002,498
Bayerische Landesbank Girozen, New York Branch, 1.06% - 2.10%,
3/12/04 - 4/26/04 ................................................................. 160,000,000 160,120,682
Credit Agricole, New York Branch, 1.06% - 1.43%, 1/05/04 -
10/22/04 .......................................................................... 155,000,000 155,002,135
Dexia Bank, New York Branch, 1.508%, 12/07/04 ...................................... 50,000,000 50,003,495
Landesbank Hessen Thueringen Giro., New York Branch, 1.11%,
3/03/04 ........................................................................... 75,000,000 75,002,576
Lloyds Bank PLC, New York Branch, 1.06% - 1.07%, 2/17/04 - 2/19/04 ................. 150,000,000 150,000,000
Rabobank Nederland NV, New York Branch, 1.06%, 4/05/04 - 4/22/04 ................... 150,000,000 149,998,837
Royal Bank of Canada, New York Branch, 1.06% - 1.42%,
4/27/04 - 10/22/04 ................................................................ 125,000,000 125,005,272
Royal Bank of Scotland NY, New York Branch, 1.08%, 1/08/04 -
1/27/04 ........................................................................... 138,958,000 138,957,995
Svenska Handelsbanken, New York Branch, 1.08% - 1.09%,
1/13/04 - 2/23/04 ................................................................. 100,000,000 100,000,433
Toronto Dominion Bank, New York Branch, 1.075% - 1.085%,
1/16/04 - 2/04/04 ................................................................. 150,000,000 150,000,457
UBS AG, Stamford, CT Branch, 1.075% - 1.305%, 4/14/04 - 4/22/04 .................... 150,000,000 150,001,133
Wells Fargo Bank, San Francisco Branch, 1.05% - 1.07%,
1/07/04 - 2/25/04 ................................................................. 150,000,000 150,000,000
Westdeutsche Landesbank, New York Branch, 1.09% - 1.25%,
4/07/04 - 4/14/04 ................................................................. 50,000,000 50,007,495
----------------
TOTAL CERTIFICATES OF DEPOSIT (COST $2,204,105,415) ................................ 2,204,105,415
----------------
COMMERCIAL PAPER 45.5%
a Abbott Laboratories, 1.04%, 3/08/04 ................................................ 25,000,000 24,951,611
a American International Group I, 1.07% - 1.085%, 2/20/04 - 2/26/04 .................. 100,000,000 99,841,431
a ANZ (Delaware) Inc., 1.07% - 1.075%, 1/12/04 - 2/26/04 ............................. 108,400,000 108,319,627
a Citigroup Global Markets Holdings, 1.06% - 1.08%,
1/05/04 - 1/15/04 ................................................................. 150,000,000 149,968,035
a Commonwealth Bank of Australia, 1.05% - 1.08%, 2/17/04 - 4/02/04 ................... 150,000,000 149,652,083
a Den Danske Corp. Inc., 1.065% - 1.08%, 1/14/04 - 3/18/04 ........................... 150,000,000 149,743,642
a Dexia Bank, 1.07% - 1.08%, 3/09/04 - 3/17/04 ....................................... 100,000,000 99,790,528
a Dupont De Nemours Inc., 1.05% - 1.07%, 2/10/04 - 2/23/04 ........................... 83,538,000 83,416,619
a General Electric Capital Corp., 1.08% - 1.19%, 3/23/04 - 6/03/04 ................... 150,000,000 149,369,597
a Goldman Sachs Group Inc, 1.07%, 1/09/04 - 1/16/04 .................................. 150,000,000 149,945,756
a HBOS Treasury Services, 1.07% - 1.10%, 2/24/04 - 3/29/04 ........................... 146,600,000 146,256,749
a Internationale Ned. U.S. Funding Corp., 1.08% - 1.10%,
2/03/04 - 5/12/04 ................................................................. 145,000,000 144,740,080
a Merrill Lynch & Co Inc., 1.04%, 1/28/04 - 1/30/04 .................................. 150,000,000 149,878,667
a Nestle Capital Corp., 1.05%, 2/24/04 ............................................... 50,000,000 49,921,250
a Pfizer Inc., 1.05%, 1/06/04 - 1/07/04 .............................................. 72,000,000 71,988,462
a Procter & Gamble Co., 1.05%, 2/09/04 ............................................... 50,000,000 49,943,125
a Province of British Columbia, 1.11%, 4/19/04 ....................................... 12,000,000 11,959,670
a Shell Finance (UK) PLC, 1.06% - 1.07%, 2/09/04 - 3/09/04 ........................... 136,300,000 136,060,161
a Societe Generale NA Inc., 1.075%, 3/15/04 - 3/17/04 ................................ 150,000,000 149,664,063
a Svenska Handelsbanken Inc., 1.07%, 2/11/04 ......................................... 50,000,000 49,939,069
a Toyota Motor Credit Corp., 1.05%, 1/23/04 - 3/11/04 ................................ 134,600,000 134,464,219
a Westdeutsche Landesbank, 1.065% - 1.08%, 1/09/04 - 3/11/04 ......................... 100,000,000 99,929,750
a Westpac Capital Corp., 1.07% - 1.115%, 2/10/04 - 4/20/04 ........................... 150,000,000 149,599,862
----------------
TOTAL COMMERCIAL PAPER (COST $2,509,344,056) ....................................... 2,509,344,056
----------------

18 | Semiannual Report

The Money Market Portfolios

STATEMENT OF INVESTMENTS, DECEMBER 31, 2003 (UNAUDITED) (CONTINUED)

U.S. GOVERNMENT AGENCY SECURITIES (COST $54,253,547) 1.0%
FHLB, 1.07%, 12/23/04 .............................................................. $ 54,280,000 $ 54,253,547
----------------
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENTS
(COST $4,767,703,018) .............................................................. 4,767,703,018
----------------
REPURCHASE AGREEMENTS 17.1%
b ABN AMRO Bank, NV, New York Branch, .90%, 1/02/04,
(Maturity Value $365,018,250) ...................................................... 365,000,000 365,000,000
Collateralized by U.S. Government Agency Securities
b Deutsche Bank Securities Inc., .80%, 1/02/04 (Maturity Value
$107,954,798) ...................................................................... 107,950,000 107,950,000
Collateralized by U.S. Treasury Notes
b Morgan Stanley & Co. Inc., .81%, 1/02/04 (Maturity Value
$107,959,858) ...................................................................... 107,955,000 107,955,000
Collateralized by U.S. Treasury Notes
b UBS Securities LLC, .85%, 1/02/04 (Maturity Value $365,017,236) .................... 365,000,000 365,000,000
Collateralized by U.S. Government Agency Securities
----------------
TOTAL REPURCHASE AGREEMENTS (COST $945,905,000) .................................... 945,905,000
----------------
TOTAL INVESTMENTS (COST $5,713,608,018) 103.5% ..................................... 5,713,608,018
OTHER ASSETS, LESS LIABILITIES (3.5)% .............................................. (195,409,004)
----------------
NET ASSETS 100.0% .................................................................. $5,518,199,014
================

aSecurities are traded on a discount basis; the rates shown are the discount
rates at the time of purchase by the portfolio.
bSee Note 1(b) regarding repurchase agreements.

See notes to financial statements. | Semiannual Report | 19

The Money Market Portfolios

FINANCIAL HIGHLIGHTS

THE U.S. GOVERNMENT SECURITIES MONEY MARKET PORTFOLIO

---------------------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 2003 YEAR ENDED JUNE 30,
(UNAUDITED) 2003 2002 2001 2000 1999
---------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------
Income from investment operations - net
investment income ................................ .004 .013 .024 .056 .054 .049
Less distributions from net investment income ..... (.004) (.013) (.024) (.056) (.054) (.049)
---------------------------------------------------------------------------
Net asset value, end of period .................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===========================================================================

Total return a .................................... .44% 1.34% 2.43% 5.75% 5.48% 4.97%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ................. $184,898 $201,758 $226,676 $186,718 $221,993 $258,458
Ratios to average net assets:
Expenses ......................................... .15% b .15% .15% .15% .15% .15%
Expenses excluding waiver by affiliate ........... .16% b .16% .16% .16% .16% .15%
Net investment income ............................ .87% b 1.34% 2.33% 5.63% 5.36% 4.84%

aTotal return is not annualized for periods less than one year.
bAnnualized.

20 | Semiannual Report | See notes to financial statements.

The Money Market Portfolios

STATEMENT OF INVESTMENTS, DECEMBER 31, 2003 (UNAUDITED)

- ---------------------------------------------------------------------------------------------------------------------------
THE U.S. GOVERNMENT SECURITIES MONEY MARKET PORTFOLIO PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------------------

GOVERNMENT SECURITIES 29.3%
U.S. Treasury Bill, 1/15/04 ........................................................... $ 5,000,000 $ 4,998,182
U.S. Treasury Bill, 4/22/04 ........................................................... 5,000,000 4,984,211
U.S. Treasury Bill, 5/06/04 ........................................................... 5,000,000 4,982,325
U.S. Treasury Bill, 5/13/04 ........................................................... 5,000,000 4,980,604
U.S. Treasury Bill, 5/27/04 ........................................................... 5,000,000 4,979,134
U.S. Treasury Note, 3.625%, 3/31/04 ................................................... 10,000,000 10,063,689
U.S. Treasury Note, 3.375%, 4/30/04 ................................................... 3,000,000 3,020,585
U.S. Treasury Note, 2.875%, 6/30/04 ................................................... 11,000,000 11,094,281
U.S. Treasury Note, 1.875%, 9/30/04 ................................................... 5,000,000 5,023,801
--------------
TOTAL GOVERNMENT SECURITIES (COST $54,126,812) ........................................ 54,126,812
--------------
REPURCHASE AGREEMENTS 70.6%
a ABN AMRO Bank, N.V., New York Branch, .85%, 1/02/04
(Maturity Value $8,000,378) .......................................................... 8,000,000 8,000,000
Collateralized by U.S. Treasury Bonds
a Banc of America Securities LLC, .77%, 1/02/04 (Maturity
Value $8,000,342) .................................................................... 8,000,000 8,000,000
Collateralized by U.S. Treasury Bonds
a Barclays Capital Inc., .83%, 1/02/04 (Maturity Value $8,000,369) ...................... 8,000,000 8,000,000
Collateralized by U.S. Treasury Notes
a Bear, Stearns & Co. Inc., .80%, 1/02/04 (Maturity Value $8,000,356) ................... 8,000,000 8,000,000
Collateralized by U.S. Treasury Notes
a Deutsche Bank Securities Inc., .80%, 1/02/04 (Maturity
Value $33,331,481) ................................................................... 33,330,000 33,330,000
Collateralized by U.S. Treasury Notes
a Dresdner Kleinwort Wasserstein Securities LLC, .83%, 1/02/04
(Maturity Value $8,000,369) .......................................................... 8,000,000 8,000,000
Collateralized by U.S. Treasury Bonds
a Goldman, Sachs, & Co., .80%, 1/02/04 (Maturity Value $8,000,356) ...................... 8,000,000 8,000,000
Collateralized by U.S. Treasury Notes
a Greenwich Capital Markets Inc., .83%, 1/02/04 (Maturity
Value $8,000,369) .................................................................... 8,000,000 8,000,000
Collateralized by U.S. Treasury Notes
a Morgan Stanley & Co. Inc., .81%, 1/02/04 (Maturity
Value $33,336,500) ................................................................... 33,335,000 33,335,000
Collateralized by U.S. Treasury Notes
a UBS Securities LLC, .83%, 1/02/04 (Maturity Value $8,000,369) ......................... 8,000,000 8,000,000
Collateralized by U.S. Treasury Notes
--------------
TOTAL REPURCHASE AGREEMENTS (COST $130,665,000) ....................................... 130,665,000
--------------
TOTAL INVESTMENTS (COST $184,791,812) 99.9% ........................................... 184,791,812
OTHER ASSETS, LESS LIABILITIES .1% .................................................... 106,245
--------------
NET ASSETS 100.0% ..................................................................... $184,898,057
==============

aSee Note 1(b) regarding repurchase agreements.

See notes to financial statements. | Semiannual Report | 21

The Money Market Portfolios

FINANCIAL STATEMENTS

STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2003 (unaudited)

------------------------------
THE U.S.
GOVERNMENT
THE SECURITIES
MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO
------------------------------
Assets:

Investments in securities, at value and cost ...... $4,767,703,018 $ 54,126,812
Repurchase agreements, at value and cost .......... 945,905,000 130,665,000
Cash .............................................. 7,568 1,953
Interest receivable ............................... 4,959,814 136,991
------------------------------
Total assets ................................. 5,718,575,400 184,930,756
------------------------------
Liabilities:
Payables:
Investment securities purchased .................. 199,737,643 --
Affiliates ....................................... 604,940 20,339
Professional fees ................................ 28,952 12,194
Other liabilities ................................. 4,851 166
------------------------------
Total liabilities ............................ 200,376,386 32,699
------------------------------
Net assets, at value ............................... $5,518,199,014 $184,898,057
==============================
Shares outstanding ................................. 5,518,199,014 184,898,057
==============================
Net asset value per share .......................... $1.00 $1.00
==============================

22 | Semiannual Report

The Money Market Portfolios

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF OPERATIONS
for the six months ended December 31, 2003 (unaudited)

-----------------------------
THE U.S.
GOVERNMENT
THE SECURITIES
MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO
-----------------------------
Investment income:

Interest ................................................................. $28,081,749 $1,001,989
-----------------------------
Expenses:
Management fees (Note 3) ................................................. 3,870,224 146,362
Custodian fees ........................................................... 26,180 1,114
Professional fees ........................................................ 25,843 10,414
Other .................................................................... 56,137 1,517
-----------------------------
Total expenses ...................................................... 3,978,384 159,407
Expenses waived by affiliate (Note 3) ............................... (108,026) (10,891)
-----------------------------
Net expenses ....................................................... 3,870,358 148,516
-----------------------------
Net investment income ............................................. 24,211,391 853,473
-----------------------------
Net realized gain (loss) from investments ................................. -- 5,742
-----------------------------
Net increase (decrease) in net assets resulting from operations ........... $24,211,391 $ 859,215
=============================

Semiannual Report | See notes to financial statements. | 23

The Money Market Portfolios

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS for the six months ended December 31, 2003
(unaudited) and the year ended June 30, 2003

---------------------------------------------------------------------
THE U.S. GOVERNMENT SECURITIES
THE MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
---------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, 2003 JUNE 30, 2003 DECEMBER 31, 2003 JUNE 30, 2003
---------------------------------------------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ................... $ 24,211,391 $ 73,176,506 $ 853,473 $ 2,883,855
Net realized gain (loss)
from investments ....................... -- 19,063 5,742 --
---------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations .......... 24,211,391 73,195,569 859,215 2,883,855
Distributions to shareholders from net
investment income ........................ (24,211,391) (73,195,569) a (859,215) b (2,883,855)
Capital share transactions
(Note 2) ................................ 186,999,301 597,003,871 (16,859,972) (24,918,467)
---------------------------------------------------------------------
Net increase (decrease) in
net assets ......................... 186,999,301 597,003,871 (16,859,972) (24,918,467)
Net assets (there is no undistributed net
investment income at beginning or end
of period):
Beginning of period ..................... 5,331,199,713 4,734,195,842 201,758,029 226,676,496
---------------------------------------------------------------------
End of period ........................... $5,518,199,014 $5,331,199,713 $184,898,057 $201,758,029
=====================================================================

aDistributions were increased by a net realized gain from investments of
$19,063.
bDistributions were increased by a net realized gain from investments of $5,742.

24 | See notes to financial statements. | Semiannual Report

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The Money Market Portfolios (the Trust) is registered under the Investment
Company Act of 1940 as a diversified, open-end investment company, consisting of
two separate portfolios (the Portfolios). The shares of the Trust are issued in
private placements and are exempt from registration under the Securities Act of
1933. The Portfolios seek to provide high current income consistent with
preservation of capital and liquidity.

The following summarizes the Portfolios' significant accounting policies.

A. SECURITY VALUATION

Securities are valued at amortized cost which approximates value.

B. REPURCHASE AGREEMENTS

The Portfolios may enter into repurchase agreements, which are accounted for as
a loan by the Portfolios to the seller, collateralized by securities which are
delivered to the Portfolios' custodian. The market value, including accrued
interest, of the initial collateralization is required to be at least 102% of
the dollar amount invested by the Portfolios, with the value of the underlying
securities marked to market daily to maintain coverage of at least 100%. At
December 31, 2003, all outstanding repurchase agreements held by the Portfolios
had been entered into on that date.

C. INCOME TAXES

No provision has been made for income taxes because each portfolio's policy is
to qualify as a regulated investment company under the Internal Revenue Code and
to distribute substantially all of its taxable income.

D. 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. Discounts and premiums
on securities purchased are amortized over the lives of the respective
securities. Dividends from net investment income and capital gains or losses are
normally declared daily. Such distributions are reinvested in additional shares
of the Portfolios.

Common expenses incurred by the Trust are allocated among the Portfolios based
on the ratio of net assets of each portfolio to the combined net assets. Other
expenses are charged to each portfolio on a specific identification basis.

E. 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 expense during the reporting period. Actual results could differ from those
estimates.

Semiannual Report | 25

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. GUARANTEES AND INDEMNIFICATIONS

Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liability 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. However, based on experience, the Trust
expects the risk of loss to be remote.

2. SHARES OF BENEFICIAL INTEREST

At December 31, 2003, there were an unlimited number of shares authorized ($.01
par value). Transactions in the Portfolios' shares at $1.00 per share were as
follows:

-------------------------------------
THE U.S.
GOVERNMENT
THE SECURITIES
MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO
-------------------------------------

Six months ended December 31, 2003
Shares sold ...................................................... $ 2,857,333,193 $ 80,579,932
Shares issued in reinvestment of distributions ................... 24,213,385 858,973
Shares redeemed .................................................. (2,694,547,277) (98,298,877)
-------------------------------------
Net increase (decrease) .......................................... $ 186,999,301 $ (16,859,972)
=====================================
Year ended June 30, 2003
Shares sold ...................................................... $ 6,279,565,500 $ 309,427,987
Shares issued in reinvestment of distributions ................... 73,193,516 2,884,175
Shares redeemed .................................................. (5,755,755,145) (337,230,629)
-------------------------------------
Net increase (decrease) .......................................... $ 597,003,871 $ (24,918,467)
=====================================

26 | Semiannual Report

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES

Certain officers and trustees of the Trust are also officers and/or directors of
Franklin Advisers Inc. (Advisers) and Franklin/Templeton Investor Services LLC
(Investor Services), the Portfolios' investment manager and transfer agent,
respectively, and of the Franklin Money Fund, the Institutional Fiduciary Trust,
the Franklin Templeton Money Fund Trust, and the Franklin Federal Money Fund.

The Portfolios pay an investment management fee to Advisers of .15% per year of
the average daily net assets of each portfolio. Advisers agreed in advance to
waive management fees as noted in the Statements of Operations.

At December 31, 2003, the shares of The Money Market Portfolio were owned by the
following funds:

------------------------------------
PERCENTAGE OF
SHARES OUTSTANDING SHARES
------------------------------------

Institutional Fiduciary Trust - Money Market Portfolio .............................. 3,464,130,196 62.78%
Franklin Money Fund ................................................................. 1,720,139,543 31.17%
Institutional Fiduciary Trust - Franklin Cash Reserves Fund ......................... 213,907,784 3.88%
Franklin Templeton Money Fund Trust - Franklin Templeton
Money Fund ......................................................................... 120,021,491 2.17%

At December 31, 2003, the shares of The U.S. Government Securities Money Market
Portfolio were owned by the following funds:

------------------------------------
PERCENTAGE OF
SHARES OUTSTANDING SHARES
------------------------------------

Franklin Federal Money Fund ......................................................... 112,150,304 60.66%
Institutional Fiduciary Trust - Franklin U.S. Government Securities
Money Market Portfolio ............................................................. 72,747,753 39.34%

4. INCOME TAXES

At December 31, 2003, the cost of investments for book and income tax purposes
were the same.

Semiannual Report | 27

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

5. REGULATORY MATTERS

On February 4, 2004, the Securities Division of the Office of the Secretary of
the Commonwealth of Massachusetts filed an administrative complaint against
Franklin Resources, Inc. and certain of its subsidiaries (the "Company"),
alleging violations of the Massachusetts Uniform Securities Act. The complaint
arises from activity that occurred in 2001 during which time an officer of a
Company subsidiary was negotiating an agreement with an investor relating to
investments in a mutual fund and a hedge fund.

The Company, in addition to other entities within Franklin Templeton
Investments, has been named in shareholder class actions related to the matter
described above. The Company believes that the claims made in the lawsuit are
without merit and it intends to defend vigorously against the allegations. The
Company and the funds may be named in similar civil actions related to the
matter described above.

In addition, as part of ongoing investigations by the U.S. Securities and
Exchange Commission (the "SEC"), the U.S. Attorney for the Northern District of
California, the New York Attorney General, the California Attorney General, the
U.S. Attorney for the District of Massachusetts, the Florida Department of
Financial Services, and the Commissioner of Securities and the Attorney General
of the State of West Virginia, relating to certain practices in the mutual fund
industry, including late trading, market timing and sales compensation
arrangements, the Company and its subsidiaries, as well as certain current or
former executives and employees of the Company, have received requests for
information and/or subpoenas to testify or produce documents. The Company and
its current employees are providing documents and information in response to
these requests and subpoenas. In addition, the Company has responded to requests
for similar kinds of information from regulatory authorities in some of the
foreign countries where the Company conducts its global asset management
business.

The Staff of the SEC has informed the Company that it intends to recommend that
the Commission authorize an action against the funds' investment adviser and a
senior executive officer relating to the frequent trading issues that are the
subject of the SEC's investigation. These issues were previously disclosed as
being under investigation by government authorities and the subject of an
internal inquiry by the Company in its Annual Report on Form 10-K and on its
public website. The Company currently is in discussions with the SEC Staff in an
effort to resolve the issues raised in their investigation. Such discussions are
preliminary and the funds' management has been advised that the Company cannot
predict the likelihood of whether those discussions will result in a settlement
and, if so, the terms of such settlement. The impact, if any, of these matters
on the funds is uncertain at this time. If the Company finds that it bears
responsibility for any unlawful or improper conduct, it has committed to making
the funds or their shareholders whole, as appropriate.

28 | Semiannual Report

Franklin Money Fund

PROXY VOTING POLICIES AND PROCEDURES

The Fund has established Proxy Voting Policies and Procedures ("Policies") that
the Fund uses to determine how to vote proxies relating to portfolio securities.
Shareholders may view the Fund'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 1-954/847-2268 or
by sending a written request to: Franklin Templeton Companies, LLC, 500 East
Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33394, Attention: Proxy
Group.

Semiannual Report | 29

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 10(a), the Registrant is attaching as an exhibit a copy of
its code of ethics that applies to its principal executive officers 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. N/A
Item 5. Audit Committee of Listed Registrants. N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies. N/A

Item 9. 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 10. Exhibits.

(A) Code of Ethics for Principal Executive and Senior Financial Officers.

(B)(1) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Kimberley H. Monasterio, Chief Financial Officer

(B)(2) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Kimberley H. Monasterio, 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.

THE MONEY MARKET PORTFOLIOS

By /s/Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date February 27, 2004

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
Chief Executive Officer - Finance and Administration
Date February 27, 2004

By /s/Kimberley H. Monasterio
Chief Financial Officer
Date February 27, 2004