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 811-10157

Franklin Global Trust
(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: 7/31

Date of reporting period: 7/31/04

Item 1. Reports to Stockholders.

[GRAPHIC OMITTED]

[LOGO OMITTED]

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FGT
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FUNDS
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ANNUAL REPORT

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JULY 31, 2004

[GRAPHIC OMITTED]

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FIDUCIARY
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TRUST
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INTERNATIONAL
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ANNUAL REPORT

CONTENTS

President's Message .................................................... 1
Fiduciary Large Capitalization Growth and Income Fund .................. 2
Fiduciary Small Capitalization Equity Fund ............................. 7
Fiduciary European Smaller Companies Fund .............................. 12
Financial Highlights and Statements of Investments ..................... 17
Financial Statements ................................................... 30
Notes to Financial Statements .......................................... 35
Report of Independent Registered Public Accounting Firm ................ 45
Tax Designation ........................................................ 46
Board Members and Officers ............................................. 47
Shareholder Information ................................................ 52

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PRESIDENT'S MESSAGE

Dear Shareholder:

I am pleased to present the Franklin Global Trust Funds annual report for the
fiscal year ended July 31, 2004. In each Fund report, the Fund's portfolio
managers discuss market conditions and Fund performance. A complete list of each
Fund's holdings, as well as the financial statements, is included in this
report.

/S/ RUPERT H. JOHNSON, JR.

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

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STATEMENT ON CURRENT INDUSTRY ISSUES

In our efforts to fulfill our ongoing commitment to provide you with timely and
accurate information, we have prepared a statement on current industry issues as
they pertain to Franklin Resources, Inc., and our subsidiary companies (Franklin
Templeton Investments). You can find the most updated "Statement on Current
Industry Issues" and a detailed Q&A at franklintempleton.com, or call us at
1-800/321-8563.
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NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
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ANNUAL REPORT 1

FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND
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YOUR FUND'S GOAL AND MAIN INVESTMENTS: FIDUCIARY LARGE CAPITALIZATION GROWTH AND
INCOME FUND SEEKS LONG-TERM GROWTH OF PRINCIPAL AND INCOME THROUGH INVESTING AT
LEAST 80% OF ITS NET ASSETS IN INVESTMENTS OF LARGE CAPITALIZATION COMPANIES.
LARGE CAPITALIZATION COMPANIES ARE DEFINED AS THOSE WITH MARKET CAPITALIZATIONS
OF MORE THAN $5 BILLION AT THE TIME OF PURCHASE. THE FUND INVESTS MAINLY IN
DIVIDEND-PAYING STOCKS THE MANAGER BELIEVES WILL APPROXIMATE THE DIVIDEND YIELD
OF COMPANIES IN THE STANDARD & POOR'S 500 COMPOSITE INDEX (S&P 500).1

We are pleased to bring you Fiduciary Large Capitalization Growth and Income
Fund's annual report for the fiscal year ended July 31, 2004.

PERFORMANCE OVERVIEW
Fiduciary Large Capitalization Growth and Income Fund delivered a 15.78% total
return for the fiscal year ended July 31, 2004. The Fund outperformed its
benchmark, the S&P 500, which had a 13.16% total return during the same period.2

ECONOMIC AND MARKET OVERVIEW
During the 12 months ended July 31, 2004, the U.S. economy remained strong.
One-year gross domestic product (GDP) rose an estimated 4.8% through June. Major
contributors to growth included inventory investment, equipment and software
spending, and federal government spending. Despite solid export growth and a
resilient housing market, annualized second quarter 2004 GDP grew an estimated
2.8%, which was less than expected, due largely to the weakest consumer spending
growth in three years. Approximately 70% of GDP stemmed from consumer activity,
which slowed as personal liquidity from tax cuts and low interest-rate
incentives faded. Business investment and corporate profits rose and contributed
to overall economic growth.

Labor market conditions improved during the reporting period. More than one-half
of the jobs lost during the recession and weak economic expansion have been
recovered. The economy created 1.5 million jobs since summer 2003. In addition,
the unemployment rate fell from 6.2% in July 2003 to 5.5% at period- end.3
Services created the most jobs led by leisure and hospitality, education and
health, and business and professional services.

In light of positive economic developments, consumer inflation remained modest
but picked up speed in 2004. Excluding the volatile food and energy categories,
consumer prices increased 1.8% for the 12 months ended July 31, 2004.
Consequently, for the first time in more than four years, the Federal Reserve
Board (Fed) raised the federal funds target rate on June 30, 2004, by a
quarter-point to 1.25%. Because Fed policymakers expect inflation to remain
relatively low, they believe they can raise interest rates at a measured pace.
Nonetheless, the Fed said it will respond to changes in economic prospects as
needed to fulfill its obligation to maintain price stability.

Domestic equity markets sustained a rally through year-end 2003, then flattened
before falling into negative territory through July 2004. Despite continued
signs of enhanced corporate fundamentals, investors appeared cautious due to
geopolitical uncertainty, soaring oil prices and rising interest rates. The S&P
500 rose 13.16% for the 12 months under review, while the technology-heavy
NASDAQ Composite Index gained 9.33%.4

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 18.

2 ANNUAL REPORT

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PORTFOLIO BREAKDOWN
FIDUCIARY LARGE CAPITALIZATION
GROWTH AND INCOME FUND
7/31/04
% OF TOTAL
SECTOR/INDUSTRY NET ASSETS
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Biotechnology ............................. 9.0%
Aerospace & Defense ....................... 8.4%
Insurance ................................. 7.6%
Software .................................. 7.3%
Pharmaceuticals ........................... 5.6%
Oil & Gas ................................. 5.4%
Industrial Conglomerates .................. 4.9%
Hotels, Restaurants & Leisure ............. 4.7%
Food Products ............................. 4.5%
Communications Equipment .................. 4.4%
Semiconductors &
Semiconductor Equipment .................. 4.1%
Media ..................................... 3.5%
IT Services ............................... 2.5%
Multi-Utilities & Unregulated Power ....... 2.4%
Road & Rail ............................... 2.4%
Machinery ................................. 2.3%
Energy Equipment & Services ............... 2.2%
Commercial Services & Supplies ............ 2.2%
Electric Utilities ........................ 2.2%
Air Freight & Logistics ................... 2.2%
Computers & Peripherals ................... 2.1%
Specialty Retail .......................... 2.1%
Capital Markets ........................... 2.0%
Diversified Financial Services ............ 2.0%
Short-Term Investments &
Other Net Assets ......................... 4.0%
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INVESTMENT STRATEGY
We are research driven, fundamental investors, pursuing a blend of growth and
value strategies. We use a top-down analysis of macroeconomic trends, market
sectors (with some attention to the sector weightings in the Fund's comparative
index) and industries combined with a bottom-up analysis of individual
securities. In selecting investments for the Fund, we look for companies we
believe are positioned for growth in revenues, earnings or assets, and are
selling at reasonable prices. We also consider the basic financial and operating
strength and quality of a company and its management.

MANAGER'S DISCUSSION
During the year under review, the Fund's performance benefited from stock
selection and an overweighted position in industrial stocks relative to the S&P
500. The Fund's stock selection and overweighted positions in the information
technology and health care sectors also helped performance relative to the
index.5 Some of the Fund's strongest individual performers during the reporting
period included software provider Symantec, biotechnology firm Biogen Idec,
aerospace and defense company Honeywell International, and oil and gas company
BP. During the period, one of the Fund's holdings, FleetBoston Financial, was
purchased by Bank of America at a substantial premium over the Fund's cost,
which also helped performance. In addition, the Fund benefited from owning
companies working through specific difficulties that had depressed a company's
earnings and share price. Examples of such holdings include communications
equipment manufacturer Corning and industrial conglomerate Tyco International.
Both stocks appreciated more than 50% as the companies experienced a dramatic
improvement in operational and financial strength during the period.

Although the Fund outperformed the index during the period, there were some
detractors from performance. For example, some of the Fund's consumer
discretionary sector holdings hindered performance.6 In addition, several other
holdings either fell in value or produced only minimal gains. Such holdings
included Amgen, Merck, Electronic Data Systems, Lockheed Martin and Interactive
Corp. By period-end, we sold Electronic Data, Lockheed and Interactive; however,
consistent with our investment strategy, we continued to own shares of Amgen and
Merck based on our positive outlook for the companies' recovery.

ANNUAL REPORT 3

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Thank you for your continued participation in Fiduciary Large Capitalization
Growth and Income Fund. We look forward to serving your future investment needs.

S. Mackintosh Pulsifer
Vice President of Fiduciary and
Senior VP of Fiduciary Trust

Carl Scaturo
Vice President of Fiduciary and
Senior Vice President of Fiduciary Trust

Fiduciary Large Capitalization Growth and Income Fund

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The markets and investments discussions above reflect our analysis, opinions and
portfolio holdings as of July 31, 2004, 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 adviser 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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1. THE S&P 500 CONSISTS OF 500 STOCKS CHOSEN FOR MARKET SIZE, LIQUIDITY AND
INDUSTRY GROUP REPRESENTATION. EACH STOCK'S WEIGHT IN THE INDEX IS PROPORTIONATE
TO ITS MARKET VALUE. THE S&P 500 IS ONE OF THE MOST WIDELY USED BENCHMARKS OF
U.S. EQUITY PERFORMANCE.

2. SOURCE: STANDARD & POOR'S MICROPAL. PLEASE SEE FOOTNOTE 1 FOR A DESCRIPTION
OF THE S&P 500. THE INDEX IS UNMANAGED AND INCLUDES REINVESTED DIVIDENDS. ONE
CANNOT INVEST DIRECTLY IN AN INDEX, NOR IS AN INDEX REPRESENTATIVE OF THE FUND'S
PORTFOLIO.

3. SOURCE: BUREAU OF LABOR STATISTICS.

4. SOURCE: STANDARD & POOR'S MICROPAL. PLEASE SEE FOOTNOTE 1 FOR A DESCRIPTION
OF THE S&P 500. THE NASDAQ COMPOSITE INDEX MEASURES ALL DOMESTIC AND
INTERNATIONAL COMMON STOCKS LISTED ON THE NASDAQ STOCK MARKET. THE INDEX IS
MARKET VALUE WEIGHTED AND INCLUDES OVER 3,000 COMPANIES.

5. THE INFORMATION TECHNOLOGY SECTOR COMPRISES COMMUNICATIONS EQUIPMENT,
COMPUTERS AND PERIPHERALS, IT SERVICES, SEMICONDUCTORS AND SEMICONDUCTOR
EQUIPMENT, AND SOFTWARE IN THE SOI. THE HEALTH CARE SECTOR COMPRISES
BIOTECHNOLOGY AND PHARMACEUTICALS IN THE SOI.

6. THE CONSUMER DISCRETIONARY SECTOR COMPRISES FOOD PRODUCTS; HOTELS,
RESTAURANTS AND LEISURE; MEDIA AND SPECIALTY RETAIL IN THE SOI.

4 ANNUAL REPORT

FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND
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TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT*

The graph below illustrates the hypothetical investment of $10,000 in Fiduciary
Large Capitalization Growth and Income Fund (the "Fund") from December 11, 1998
(start of performance), to July 31, 2004, compared with the Standard & Poor's
500 Composite Index (S&P 500).+

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Fiduciary Large Capitalization Growth and Income Fund S&P 500 Index

12/11/98 $10,000.00 $10,000.00
10,691.00 10,371.50
10,750.90 10,805.10
10,220.80 10,469.30
10,590.80 10,888.10
11,041.00 11,309.70
10,710.80 11,043.00
11,399.50 11,655.40
11,148.80 11,292.00
11,148.80 11,236.10
10,847.70 10,928.40
11,348.90 11,619.70
11,419.30 11,855.90
11,590.50 12,553.70
11,150.10 11,923.10
2/29/00 10,894.80 11,697.60
11,769.60 12,841.20
11,757.80 12,455.00
11,746.10 12,200.10
12,129.00 12,501.00
11,733.60 12,305.70
12,662.90 13,069.60
11,832.20 12,379.80
11,983.70 12,327.30
11,192.80 11,356.10
11,393.10 11,411.80
11,406.80 11,816.50
10,453.20 10,739.70
9,779.99 10,059.70
10,384.40 10,840.90
5/31/01 10,580.70 10,913.60
10,173.30 10,648.10
10,117.30 10,543.20
9,850.25 9,883.84
9,288.79 9,085.76
9,599.03 9,259.12
10,162.50 9,969.18
10,153.30 10,056.60
9,915.76 9,909.89
9,871.14 9,718.76
10,197.90 10,084.30
9,527.87 9,473.17
9,424.02 9,403.62
8,500.46 8,733.99
7,948.78 8,053.38
8/31/02 8,023.50 8,106.11
7,321.45 7,225.92
7,993.56 7,861.32
8,441.99 8,323.58
7,988.66 7,834.84
7,793.74 7,629.98
7,658.90 7,515.33
7,673.46 7,587.56
8,139.23 8,212.84
8,590.15 8,645.11
8,664.88 8,755.57
8,890.17 8,910.01
9,100.87 9,083.44
8,905.20 8,987.26
9,447.52 9,495.41
11/30/03 9,627.97 9,578.86
10,102.60 10,080.80
10,361.30 10,265.90
10,528.10 10,408.50
10,414.40 10,251.50
10,246.70 10,090.80
10,398.30 10,229.00
10,565.80 10,427.80
7/31/04 10,292.00 10,082.70

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED JULY 31, 2004
1 Year ....................................................... 15.78%
5 Year ....................................................... -1.59%
Start of Performance (12/11/98) .............................. 0.51%

PERFORMANCE QUOTED REPRESENTS 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. LARGE CAPITALIZATION STOCKS TEND TO GO THROUGH MORE PRONOUNCED UP
AND DOWN CYCLES THAN THE OVERALL MARKET AND, IN THE PAST, THESE PERIODS HAVE
LASTED SEVERAL YEARS. THE FUND'S PORTFOLIO INCLUDES INVESTMENTS IN TECHNOLOGY,
WHICH HAS BEEN AMONG THE MARKET'S MOST VOLATILE SECTORS. THE FUND'S PROSPECTUS
ALSO INCLUDES A DESCRIPTION OF THE MAIN INVESTMENT RISKS.

*TOTAL RETURN REPRESENTS THE CUMULATIVE OR AVERAGE ANNUAL CHANGE IN VALUE OF AN
INVESTMENT OVER THE PERIODS INDICATED, ASSUMING REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. AVERAGE RETURNS SMOOTH OUT VARIATIONS IN RETURNS, WHICH CAN BE
SIGNIFICANT; THEY ARE NOT THE SAME AS YEAR-BY-YEAR RESULTS. PERFORMANCE SHOWN
DOES NOT REFLECT ANY TAXES DUE ON FUND DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS,
IF ANY, OR ANY UNREALIZED GAINS ON THE SALE OF FUND SHARES. PERFORMANCE PRIOR
TO THE JULY 24, 2003, REORGANIZATION REFLECTS HISTORICAL PERFORMANCE OF FTI
LARGE CAPITALIZATION GROWTH AND INCOME FUND. PAST EXPENSE REDUCTIONS BY THE
FUND'S MANAGER AND ADMINISTRATOR INCREASED THE FUND'S TOTAL RETURNS. IF THE
MANAGER AND ADMINISTRATOR HAD NOT TAKEN THIS ACTION, THE FUND'S TOTAL RETURNS
WOULD HAVE BEEN LOWER.

+SOURCE: STANDARD & POOR'S MICROPAL. THE S&P 500 IS NOT ADJUSTED TO REFLECT
SALES CHARGES, EXPENSES OR OTHER FEES THAT THE SEC REQUIRES TO BE REFLECTED IN
THE FUND'S PERFORMANCE. THE S&P 500 CONSISTS OF 500 STOCKS CHOSEN FOR MARKET
SIZE, LIQUIDITY AND INDUSTRY GROUP REPRESENTATION. EACH STOCK'S WEIGHT IN THE
INDEX IS PROPORTIONATE TO ITS MARKET VALUE. THE S&P 500 IS ONE OF THE MOST
WIDELY USED BENCHMARKS OF U.S. EQUITY PERFORMANCE. THE INDEX IS UNMANAGED AND
INCLUDES REINVESTED DIVIDENDS. ONE CANNOT INVEST DIRECTLY IN AN INDEX, NOR IS
AN INDEX REPRESENTATIVE OF THE FUND'S PORTFOLIO.

ANNUAL REPORT 5

FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND
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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 below 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.

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.

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BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 1/31/04 VALUE 7/31/04 PERIOD* 1/31/04-7/31/04
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Actual $1,000 $1,006.60 $4.89
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Hypothetical (5% return before expenses) $1,000 $1,019.99 $4.92
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*EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 0.98%, MULTIPLIED
BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 182/366 TO REFLECT
THE ONE-HALF YEAR PERIOD.

6 ANNUAL REPORT

FIDUCIARY SMALL CAPITALIZATION EQUITY FUND
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YOUR FUND'S GOAL AND MAIN INVESTMENTS: FIDUCIARY SMALL CAPITALIZATION EQUITY
FUND SEEKS GROWTH OF PRINCIPAL THROUGH INVESTING AT LEAST 80% OF ITS NET ASSETS
IN MARKETABLE EQUITY AND EQUITY-RELATED SECURITIES OF SMALL CAPITALIZATION
COMPANIES. SMALL CAPITALIZATION COMPANIES ARE DEFINED AS THOSE WITH MARKET
CAPITALIZATIONS LESS THAN $1.5 BILLION AT THE TIME OF PURCHASE.

This annual report for Fiduciary Small Capitalization Equity Fund covers the
fiscal year ended July 31, 2004.

PERFORMANCE OVERVIEW
Fiduciary Small Capitalization Equity Fund delivered a 4.28% total return for
the fiscal year ended July 31, 2004. The Fund underperformed its benchmark, the
Russell 2000(R) Growth Index, which had an 11.32% total return during the same
period.1

Labor market conditions improved during the reporting period. More than one-half
of the jobs lost during the recession and weak economic expansion have been
recovered. The economy created 1.5 million jobs since summer 2003. In addition,
the unemployment rate fell from 6.2% in July 2003 to 5.5% at period-end.2
Services created the most jobs led by leisure and hospitality, education and
health, and business and professional services.

Domestic equity markets sustained a rally through year-end 2003, then flattened
before falling into negative territory through July 2004. Despite continued
signs of enhanced corporate fundamentals, investors appeared cautious due to
geopolitical uncertainty, soaring oil prices and rising interest rates. The
Standard & Poor's 500 Composite Index (S&P 500) rose 13.16% for the 12 months
under review, while the technology-heavy NASDAQ Composite Index gained 9.33%.3

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 22.

ANNUAL REPORT 7

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PORTFOLIO BREAKDOWN
FIDUCIARY SMALL CAPITALIZATION EQUITY FUND
7/31/04
% OF TOTAL
SECTOR/INDUSTRY NET ASSETS
- -------------------------------------------------------
Health Care Providers & Services .......... 9.3%
Machinery ................................. 6.2%
Semiconductors &
Semiconductor Equipment .................. 6.0%
Software .................................. 5.8%
Health Care Equipment & Supplies .......... 5.5%
Internet Software & Services .............. 5.2%
Oil & Gas ................................. 5.0%
Commercial Services & Supplies ............ 4.8%
Biotechnology ............................. 4.6%
Electronic Equipment & Instruments ........ 4.5%
Capital Markets ........................... 4.4%
Chemicals ................................. 3.4%
Specialty Retail .......................... 3.0%
Hotels, Restaurants & Leisure ............. 2.7%
Textiles, Apparel & Luxury Goods .......... 2.6%
Metals & Mining ........................... 2.6%
Road & Rail ............................... 2.6%
Diversified Financial Services ............ 2.5%
Energy Equipment & Services ............... 2.4%
Other ..................................... 14.3%
Short-Term Investments &
Other Net Assets ......................... 2.6%
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INVESTMENT STRATEGY
Our U.S. small cap growth equity process is based on the application of a
disciplined bottom-up methodology. We believe that a diversified small cap
equity portfolio focused on companies we regard as having significant earnings
growth potential, managed within a disciplined framework of active sector
selection and valuation analysis, can provide long-term capital appreciation. We
seek companies that possess a relatively high rate of return on invested capital
and may offer the potential for accelerating earnings growth as they can offer
an opportunity to participate in new products, services and technologies.

MANAGER'S DISCUSSION
During the Fund's fiscal year, strong selection among consumer discretionary
stocks helped performance relative to the Russell 2000 Growth Index.4
Specifically, media company Lions Gate Entertainment, an independent producer
and distributor of film and television, contributed significantly to
performance, as the stock appreciated in value more than 200% during the past
year. Shuffle Master, a developer of gaming industry technology, as well as
specialty retailers Aeropostale and Claire's Stores, also boosted performance.
The Fund's overweighted position in energy-related stocks relative to the index
aided performance as oil and gas prices remained at historically high levels
during the period. For example, Fund holding Quicksilver Resources, an
independent oil and natural gas company, performed strongly during the period
and benefited the Fund's relative return.

Health care-related stocks were some of the biggest detractors from Fund
performance during the period. Weak performance from a number of our
biotechnology and health care equipment and supplies sector holdings offset
Pediatrix Medical Group's strong performance. In particular, poor performers
included CV Therapeutics (sold by period-end), a biopharmaceutical company
dedicated to cardiovascular disease treatments; XOMA, a biopharmaceutical firm
developing treatment for inflammatory diseases, cancer and infectious diseases;
and Advanced Neuromodulation Systems, a developer, designer and manufacturer of
an implantable device to ease chronic pain. Our position in the information

8 ANNUAL REPORT

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technology (IT) sector was a drag on the Fund's absolute and relative
performance.5 Pinnacle Systems, a computers and peripherals company, as well as
several semiconductor-related stocks, detracted from performance. Throughout
most of the Fund's fiscal year, we maintained an overweighted position, relative
to the index, in the semiconductors and semiconductor equipment industry, which
dampened performance. During the period, however, we reduced our exposure to
that industry and had an average IT weighting roughly equivalent to that of the
index during the period.

Thank you for your continued participation in Fiduciary Small Capitalization
Equity Fund. We look forward to serving your future investment needs.

John P. Callaghan
Vice President of Fiduciary and
Senior VP of Fiduciary Trust

Alison J. Schatz, CFA
Portfolio Manager of Fiduciary and
Senior VP of Fiduciary Trust

Fiduciary Small Capitalization Equity Fund

1. SOURCE: STANDARD & POOR'S MICROPAL. THE RUSSELL 2000 GROWTH INDEX IS MARKET
CAPITALIZATION WEIGHTED AND MEASURES PERFORMANCE OF THOSE RUSSELL 2000 INDEX
COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH VALUES.
THE INDEX IS UNMANAGED AND INCLUDES REINVESTED DIVIDENDS. ONE CANNOT INVEST
DIRECTLY IN AN INDEX, NOR IS AN INDEX REPRESENTATIVE OF THE FUND'S PORTFOLIO.

2. SOURCE: BUREAU OF LABOR STATISTICS.

3. SOURCE: STANDARD & POOR'S MICROPAL. THE S&P 500 CONSISTS OF 500 STOCKS CHOSEN
FOR MARKET SIZE, LIQUIDITY AND INDUSTRY GROUP REPRESENTATION. EACH STOCK'S
WEIGHT IN THE INDEX IS PROPORTIONATE TO ITS MARKET VALUE. THE S&P 500 IS ONE OF
THE MOST WIDELY USED BENCHMARKS OF U.S. EQUITY PERFORMANCE. THE NASDAQ COMPOSITE
INDEX MEASURES ALL DOMESTIC AND INTERNATIONAL COMMON STOCKS LISTED ON THE NASDAQ
STOCK MARKET. THE INDEX IS MARKET VALUE WEIGHTED AND INCLUDES OVER 3,000
COMPANIES.

4. THE CONSUMER DISCRETIONARY SECTOR COMPRISES HOTELS, RESTAURANTS AND LEISURE;
LEISURE EQUIPMENT AND PRODUCTS; MEDIA; SPECIALTY RETAIL; AND TEXTILES, APPAREL
AND LUXURY GOODS IN THE SOI.

5. THE IT SECTOR COMPRISES COMMUNICATIONS EQUIPMENT, COMPUTERS AND PERIPHERALS,
ELECTRONIC EQUIPMENT AND INSTRUMENTS, INTERNET SOFTWARE AND SERVICES, IT
SERVICES, SEMICONDUCTORS AND SEMICONDUCTOR EQUIPMENT, AND SOFTWARE IN THE SOI.

ANNUAL REPORT 9

FIDUCIARY SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT*

The graph below illustrates the hypothetical investment of $10,000 in Fiduciary
Small Capitalization Equity Fund (the "Fund") from December 22, 1995 (start of
performance), to July 31, 2004, compared with the Russell 2000 Growth Index.+

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Fiduciary Small Capitalization Equity Fund Russell 2000 Growth Index
12/22/95 $10,000.00 $10,000.00
10,000.00 10,064.30
10,130.00 9,980.97
10,649.70 10,436.10
11,029.90 10,642.50
11,920.00 11,459.50
12,150.00 12,047.20
11,800.10 11,264.40
10,910.40 9,889.23
11,560.60 10,621.30
12,300.50 11,168.30
12,041.00 10,686.50
12,080.70 10,983.70
12,340.50 11,197.80
12,170.20 11,477.50
11,430.20 10,784.40
10,739.80 10,023.40
10,689.30 9,907.42
12,219.00 11,396.60
06/30/97 12,998.60 11,783.00
13,848.70 12,386.70
14,048.10 12,758.40
15,538.60 13,776.60
14,819.20 12,949.10
14,368.60 12,640.30
14,533.90 12,647.40
14,225.80 12,478.70
15,507.50 13,580.40
16,287.50 14,150.10
16,134.40 14,236.90
14,842.10 13,202.50
15,385.30 13,337.40
14,462.20 12,223.70
11,098.30 9,401.93
12,072.70 10,355.20
12,585.80 10,895.30
13,601.50 11,740.50
14,976.60 12,802.90
01/31/99 16,269.00 13,378.80
14,658.40 12,155.00
15,345.90 12,587.90
15,910.60 13,699.50
15,428.50 13,721.20
16,988.30 14,444.00
17,069.90 13,997.40
17,530.80 13,473.90
17,991.80 13,733.80
19,202.70 14,085.50
21,345.70 15,574.90
25,354.40 18,320.00
25,298.70 18,149.50
30,742.90 22,372.20
29,039.80 20,020.60
25,476.60 17,999.20
24,569.60 16,423.10
27,527.80 18,544.60
26,498.30 16,955.30
08/31/00 28,941.40 18,738.80
28,762.00 17,807.90
27,372.80 16,362.40
23,529.60 13,391.50
26,129.70 14,211.00
25,131.50 15,361.20
23,339.60 13,255.50
21,075.70 12,050.40
22,856.60 13,525.70
22,945.70 13,838.90
23,618.00 14,216.30
22,295.40 13,003.50
20,828.40 12,191.50
18,116.50 10,224.30
19,562.20 11,207.90
20,962.90 12,143.50
22,057.10 12,899.50
21,230.00 12,440.60
19,922.20 11,635.40
03/31/02 21,105.60 12,646.80
20,155.90 12,373.10
18,589.80 11,649.70
17,208.50 10,661.80
15,100.50 9,023.17
15,224.30 9,018.97
14,053.60 8,367.51
14,719.70 8,790.75
15,373.20 9,662.23
14,238.70 8,995.89
13,560.90 8,751.50
13,202.90 8,518.13
13,412.90 8,647.08
14,547.60 9,465.44
16,421.30 10,532.10
16,606.90 10,735.10
17,568.40 11,546.60
18,937.00 12,166.80
18,185.20 11,858.80
10/31/03 19,750.90 12,883.30
20,442.20 13,303.30
20,626.20 13,362.80
21,428.60 14,064.80
21,563.60 14,043.00
21,218.60 14,108.70
19,949.70 13,400.40
20,244.90 13,667.00
20,848.20 14,121.80
07/31/04 18,323.00 12,854.20

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED JULY 31, 2004
1 Year .................................................... 4.28%
5 Year .................................................... 1.43%
Start of Performance (12/22/95) ........................... 7.29%

PERFORMANCE DATA QUOTED REPRESENTS 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. SMALLER OR RELATIVELY NEW COMPANIES CAN BE
PARTICULARLY SENSITIVE TO CHANGING ECONOMIC CONDITIONS AND THEIR GROWTH
PROSPECTS ARE LESS CERTAIN THAN THOSE OF LARGER, ESTABLISHED COMPANIES. THE
FUND'S PORTFOLIO INCLUDES INVESTMENTS IN TECHNOLOGY, WHICH HAS BEEN AMONG THE
MARKET'S MOST VOLATILE SECTORS. THE FUND'S PROSPECTUS ALSO INCLUDES A
DESCRIPTION OF THE MAIN INVESTMENT RISKS.

*TOTAL RETURN REPRESENTS THE CUMULATIVE OR AVERAGE ANNUAL CHANGE IN VALUE OF AN
INVESTMENT OVER THE PERIODS INDICATED, ASSUMING REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. AVERAGE ANNUAL RETURNS SMOOTH OUT VARIATIONS IN RETURNS, WHICH
CAN BE SIGNIFICANT; THEY ARE NOT THE SAME AS YEAR-BY-YEAR RESULTS. PERFORMANCE
SHOWN DOES NOT REFLECT ANY TAXES DUE ON FUND DIVIDENDS, CAPITAL GAIN
DISTRIBUTIONS, IF ANY, OR ANY UNREALIZED GAINS ON THE SALE OF FUND SHARES.
PERFORMANCE PRIOR TO THE JULY 24, 2003, REORGANIZATION REFLECTS HISTORICAL
PERFORMANCE OF FTI SMALL CAPITALIZATION EQUITY FUND. PAST EXPENSE REDUCTIONS BY
THE FUND'S MANAGER AND ADMINISTRATOR INCREASED THE FUND'S TOTAL RETURNS. IF THE
MANAGER AND ADMINISTRATOR HAD NOT TAKEN THIS ACTION, THE FUND'S TOTAL RETURNS
WOULD HAVE BEEN LOWER.

+SOURCE: STANDARD & POOR'S MICROPAL. THE RUSSELL 2000 GROWTH INDEX IS NOT
ADJUSTED TO REFLECT SALES CHARGES, EXPENSES OR OTHER FEES THAT THE SEC REQUIRES
TO BE REFLECTED IN THE FUND'S PERFORMANCE. THE RUSSELL 2000 GROWTH INDEX IS
MARKET CAPITALIZATION WEIGHTED AND MEASURES PERFORMANCE OF THOSE RUSSELL 2000
INDEX COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH
VALUES. THE INDEX IS UNMANAGED AND INCLUDES REINVESTED DIVIDENDS. ONE CANNOT
INVEST DIRECTLY IN AN INDEX, NOR IS AN INDEX REPRESENTATIVE OF THE FUND'S
PORTFOLIO.

10 ANNUAL REPORT

FIDUCIARY SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------

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.

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.

- --------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 1/31/04 VALUE 7/31/04 PERIOD* 1/31/04-7/31/04
- --------------------------------------------------------------------------------------------------------

Actual $1,000 $ 855.00 $5.72
- --------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,018.70 $6.22
- --------------------------------------------------------------------------------------------------------

*EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 1.24%, MULTIPLIED
BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 182/366 TO REFLECT
THE ONE-HALF YEAR PERIOD.

ANNUAL REPORT 11

FIDUCIARY EUROPEAN SMALLER COMPANIES FUND
- --------------------------------------------------------------------------------

YOUR FUND'S GOAL AND MAIN INVESTMENTS: FIDUCIARY EUROPEAN SMALLER COMPANIES FUND
SEEKS LONG-TERM GROWTH OF PRINCIPAL BY INVESTING AT LEAST 80% OF ITS NET ASSETS
IN A DIVERSIFIED PORTFOLIO OF MARKETABLE EQUITY AND EQUITY-RELATED SECURITIES OF
SMALLER EUROPEAN COMPANIES. SMALLER EUROPEAN COMPANIES ARE DEFINED AS THOSE WITH
MARKET CAPITALIZATIONS BETWEEN $100 MILLION AND $5 BILLION OR THE EQUIVALENT IN
LOCAL CURRENCIES AT THE TIME OF PURCHASE, AND THAT ARE ORGANIZED UNDER THE LAWS
OF OR HAVE A PRINCIPAL OFFICE IN A COUNTRY IN EUROPE, OR WHOSE SECURITIES ARE
LISTED OR TRADED PRINCIPALLY IN EUROPE.

This annual report for Fiduciary European Smaller Companies Fund covers the
fiscal year ended July 31, 2004.

PERFORMANCE OVERVIEW
Fiduciary European Smaller Companies Fund delivered a 31.61% total return for
the fiscal year ended July 31, 2004. The Fund slightly underperformed its
benchmark, the HSBC Smaller European Companies Index, which had a 32.25% total
return during the same period.1

ECONOMIC AND MARKET OVERVIEW
The year under review encompassed a number of distinct market dynamics. European
markets experienced gains in third quarter 2003 following a strong run in the
previous quarter. Although performance stagnated in September largely due to a
correction prompted in part by continued U.S. dollar weakness, fourth quarter
2003 had strong gains. For example, the HSBC Smaller European Companies Index
increased about 18% in the fourth quarter, and the Morgan Stanley Capital
International (MSCI) Europe Index gained more than 20%.2 This rally boosted
performance for many sectors and companies most likely to benefit from economic
recovery, with the technology services and electronic technology sectors among
the market's top-performing areas during that time.

European small capitalization stocks began 2004 with particularly strong gains
that continued through February; however, markets experienced significant
declines following the terrorist attacks in Madrid in March. Such stocks have
remained down since then, with more market-sensitive small cap growth stocks
taking the brunt of the decline. Certain sectors illustrated the market's
defensive nature in the European small cap universe over the past 12 months. The
transportation and utility sector exhibited the strongest performance, followed
closely by stocks in the materials and basic industry sector, as well as the
capital goods sector. The health services, technology services and health
technology sectors' performances lagged.

INVESTMENT STRATEGY
Our European small cap equity process is based on the application of a small cap
equity methodology. Our investment process aims to produce a portfolio of
securities of dynamic companies operating in sectors that offer attractive
growth potential as a result of secular changes. We use a disciplined investment
approach, based on fundamental analysis and valuation, in selecting securities
based on their perceived potential for growth. Our team of research analysts is
dedicated to the identification of smaller companies that have, in their
opinion, the potential to provide above-average performance.

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 27.

12 ANNUAL REPORT

- --------------------------------------------------------------------------------

GEOGRAPHIC DISTRIBUTION
FIDUCIARY EUROPEAN SMALLER COMPANIES FUND
7/31/04
% OF TOTAL
COUNTRY NET ASSETS
- -------------------------------------------------------
U.K. ..................................... 18.5%
Germany .................................. 14.3%
Switzerland .............................. 11.1%
France ................................... 7.3%
Italy .................................... 6.9%
Norway ................................... 6.6%
Sweden 6.4%
Finland .................................. 5.9%
Greece ................................... 3.5%
Belgium .................................. 3.2%
Spain .................................... 3.0%
Irish Republic ........................... 2.7%
Austria .................................. 2.1%
Denmark .................................. 2.0%
Netherlands .............................. 1.6%
Short-Term Investments
& Other Net Assets ...................... 4.9%
- -------------------------------------------------------

MANAGER'S DISCUSSION
During the Fund's fiscal year, performance relative to the HSBC Smaller European
Companies Index was helped by stock selection in the health care sector, where
several medical specialties holdings boosted performance.3 Our relatively
overweighted positions in Getinge, a Swedish maker of sterilization equipment,
and Phonak Holding, a Swiss-based hearing-aid technology company, were strong
contributors to Fund performance as they both outperformed the index during the
period. Stock selection in the information technology sector also helped
relative performance.4 For example, a number of enterprise software companies
performed strongly, including Temenos Group, a Swiss developer of systems and
software for financial institutions; Telelogic, a Swedish developer of
information and project management software; and Finland's TietoEnator, a Nordic
provider of technology consulting and software services. Several unrelated
companies in the consumer discretionary sector also contributed to the Fund's
relative returns.5 In particular, Nokian Renkaat, a Finland-based arctic tire
manufacturer, outperformed the index during the reporting period, as did
Beneteau, a French yacht maker.

Despite the Fund's double-digit return during the period, there were several
detractors from relative performance. Swedish-based data communications and
telephony services provider Song Networks Holding, our sole position in
diversified telecommunications services, hurt performance. Performance was also
held back by positions in Transcom Worldwide, a Swedish provider of customer
relationship management solutions, and PHS Group, a U.K. workplace rental and
maintenance services provider. Zardoya Otis, a Spanish elevator company,
produced poor returns. Other positions that detracted from performance during
the period included Singulus Technologies, a German DVD and CD machine
manufacturer, and Tomra Systems, a Norwegian maker of recycling machines. We
eliminated both positions by period-end.

ANNUAL REPORT 13

- --------------------------------------------------------------------------------

Thank you for your continued participation in Fiduciary European Smaller
Companies Fund. We look forward to serving your future investment needs.

Margaret S. Lindsay
Vice President of Fiduciary and
Executive VP of Fiduciary Trust

Pratik M. Patel
Portfolio Manager of Fiduciary and
VP of Fiduciary Trust

Alexandre Oltramare
Assistant Vice President of Fiduciary

Fiduciary European Smaller Companies Fund

1. SOURCE: STANDARD & POOR'S MICROPAL. THE HSBC SMALLER EUROPEAN COMPANIES INDEX
COMPRISES ABOUT 1,500 COMPANIES IN EUROPE HAVING MARKET CAPITALIZATIONS IN A
SIMILAR RANGE TO THAT USED BY THE FUND. THE INDEX COMPOSITION IS UPDATED
QUARTERLY. THE INDEX IS UNMANAGED AND INCLUDES REINVESTED DIVIDENDS. ONE CANNOT
INVEST DIRECTLY IN AN INDEX, NOR IS AN INDEX REPRESENTATIVE OF THE FUND'S
PORTFOLIO.

2. SOURCE: STANDARD & POOR'S MICROPAL. PLEASE SEE FOOTNOTE 1 FOR A DESCRIPTION
OF THE HSBC SMALLER EUROPEAN COMPANIES INDEX. THE MSCI EUROPE INDEX IS MARKET
CAPITALIZATION WEIGHTED AND MEASURES TOTAL RETURNS OF EQUITY SECURITIES IN
EUROPE'S DEVELOPED MARKETS.

3. THE HEALTH CARE SECTOR COMPRISES BIOTECHNOLOGY, AND HEALTH CARE EQUIPMENT AND
SUPPLIES IN THE SOI.

4. THE INFORMATION TECHNOLOGY SECTOR COMPRISES COMMUNICATIONS EQUIPMENT,
COMPUTERS AND PERIPHERALS, ELECTRONIC EQUIPMENT AND TECHNOLOGY, INTERNET
SOFTWARE AND SERVICES, IT SERVICES, OFFICE ELECTRONICS, SEMICONDUCTORS AND
SEMICONDUCTOR EQUIPMENT, AND SOFTWARE IN THE SOI.

5. THE CONSUMER DISCRETIONARY SECTOR COMPRISES AUTO COMPONENTS; HOTELS,
RESTAURANTS AND LEISURE; HOUSEHOLD DURABLES; LEISURE EQUIPMENT AND PRODUCTS;
MEDIA; MULTILINE RETAIL AND SPECIALTY RETAIL IN THE SOI.

14 ANNUAL REPORT

FIDUCIARY EUROPEAN SMALLER COMPANIES FUND
- --------------------------------------------------------------------------------

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT*

The graph below illustrates the hypothetical investment of $10,000 in Fiduciary
European Smaller Companies Fund (the "Fund") from January 2, 2001 (start of
performance), to July 31, 2004, compared with the HSBC Smaller European
Companies Index.+

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Fiduciary European HSBC Smaller European
Smaller Companies Fund Companies Index

1/2/01 $10,000.00 $10,000.00
10,190.00 10,253.10
9,330.00 9,652.11
8,130.00 8,603.10
8,720.00 9,037.13
8,580.00 8,762.69
7,820.00 8,152.38
7,430.00 8,000.13
7,410.00 7,968.08
6,300.00 6,640.62
6,570.00 7,072.65
6,890.00 7,666.93
12/31/01 7,020.00 7,757.75
6,900.00 7,632.21
6,850.00 7,556.09
7,220.00 8,017.49
7,150.00 8,181.76
7,210.00 8,225.16
6,890.00 7,914.00
5,970.00 7,164.80
5,690.00 7,033.25
4,870.00 6,147.84
5,040.00 6,408.25
5,270.00 6,800.21
12/31/02 5,248.00 6,720.75
5,038.00 6,546.47
4,897.00 6,300.08
4,947.00 6,249.33
5,468.00 7,088.01
6,009.00 7,853.23
6,059.00 8,061.57
6,229.00 8,408.12
6,490.00 8,679.89
6,820.00 9,063.17
7,732.00 9,726.23
8,032.00 10,118.90
12/31/03 8,350.00 10,717.20
8,978.00 11,318.10
9,312.00 11,764.80
8,795.00 11,384.20
8,654.00 11,169.20
8,715.00 11,159.20
8,836.00 11,536.50
7/31/04 8,198.00 11,119.80

AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED JULY 31, 2004
1 Year .......................................................... 31.61%
3 Year .......................................................... 3.33%
Start of Performance (1/2/01) ................................... -5.40%

PERFORMANCE QUOTED REPRESENTS 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. FOREIGN INVESTING INVOLVES SPECIAL RISKS, INCLUDING CURRENCY
FLUCTUATIONS, ECONOMIC INSTABILITY, AND REGULATORY AND POLITICAL DEVELOPMENTS.
IN ADDITION, SMALLER COMPANY STOCKS HAVE HISTORICALLY EXHIBITED GREATER PRICE
VOLATILITY THAN LARGER COMPANY STOCKS. THE FUND'S PROSPECTUS ALSO INCLUDES A
DESCRIPTION OF THE MAIN INVESTMENT RISKS.

*TOTAL RETURN REPRESENTS THE CUMULATIVE OR AVERAGE ANNUAL CHANGE IN VALUE OF AN
INVESTMENT OVER THE PERIODS INDICATED, ASSUMING REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS. AVERAGE RETURNS SMOOTH OUT VARIATIONS IN RETURNS, WHICH CAN BE
SIGNIFICANT; THEY ARE NOT THE SAME AS YEAR-BY-YEAR RESULTS. PERFORMANCE SHOWN
DOES NOT REFLECT ANY TAXES DUE ON FUND DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS,
IF ANY, OR ANY UNREALIZED GAINS ON THE SALE OF FUND SHARES. PERFORMANCE PRIOR
TO THE JULY 24, 2003, REORGANIZATION REFLECTS HISTORICAL PERFORMANCE OF FTI
EUROPEAN SMALLER COMPANIES FUND. PAST EXPENSE REDUCTIONS BY THE FUND'S MANAGER
AND ADMINISTRATOR INCREASED THE FUND'S TOTAL RETURNS. IF THE MANAGER AND
ADMINISTRATOR HAD NOT TAKEN THIS ACTION, THE FUND'S TOTAL RETURNS WOULD HAVE
BEEN LOWER.

+SOURCE: STANDARD & POOR'S MICROPAL. THE HSBC SMALLER EUROPEAN COMPANIES INDEX
IS NOT ADJUSTED TO REFLECT SALES CHARGES, EXPENSES OR OTHER FEES THAT THE SEC
REQUIRES TO BE REFLECTED IN THE FUND'S PERFORMANCE. THE HSBC SMALLER EUROPEAN
COMPANIES INDEX COMPRISES ABOUT 1,500 COMPANIES IN EUROPE HAVING MARKET
CAPITALIZATIONS IN A SIMILAR RANGE TO THAT USED BY THE FUND. THE INDEX
COMPOSITION IS UPDATED QUARTERLY. THE INDEX IS UNMANAGED AND INCLUDES
REINVESTED DIVIDENDS. ONE CANNOT INVEST DIRECTLY IN AN INDEX, NOR IS AN INDEX
REPRESENTATIVE OF THE FUND'S PORTFOLIO.

ANNUAL REPORT 15

FIDUCIARY EUROPEAN SMALLER COMPANIES FUND
- --------------------------------------------------------------------------------

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.

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.

- ----------------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 1/31/04 VALUE 7/31/04 PERIOD* 1/31/04-7/31/04
- ----------------------------------------------------------------------------------------------------------------

Actual $1,000 $ 913.20 $7.23
- ----------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,017.30 $7.62
- ----------------------------------------------------------------------------------------------------------------

*EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO OF 1.52%, MULTIPLIED
BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 182/366 TO REFLECT
THE ONE-HALF YEAR PERIOD.

16 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
FINANCIAL HIGHLIGHTS
FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------

YEAR ENDED JULY 31, YEAR ENDED NOVEMBER 30,
---------------------------------------------------------------------
2004 2003C 2002 2001 2000 1999F
---------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)

Net asset value, beginning of year ........... $5.91 $5.65 $7.21 $9.63 $11.39 $10.00
---------------------------------------------------------------------
Income from investment operations:
Net investment income a ..................... .03 .03 .04 .04 .03 .04
Net realized and unrealized gains (losses) .. .90 .27 (1.19) (.81) (.22) 1.38
---------------------------------------------------------------------
Total from investment operations ............. .93 .30 (1.15) (.77) (.19) 1.42
---------------------------------------------------------------------
Less distributions from:
Net investment income ....................... (.03) (.04) (.05) (.04) (.03) (.03)
Net realized gains .......................... (.04) -- (.36) (1.61) (1.54) --
---------------------------------------------------------------------
Total distributions .......................... (.07) (.04) (.41) (1.65) (1.57) (.03)
---------------------------------------------------------------------
Net asset value, end of year ................. $6.77 $5.91 $5.65 $7.21 $9.63 $11.39
---------------------------------------------------------------------

Total return b ............................... 15.78% 5.30% (16.93)%e (9.22)% (1.98)% 14.20%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) .............. $82,921 $70,684 $60,904 $74,634 $87,052 $99,887
Ratios to average net assets:
Expenses .................................... 1.02% 1.21%d 1.10% 1.09% 1.02% 1.11%d
Expenses net of waiver and payments by
affiliate ................................... .98% 1.03%d 1.03% 1.03% .97% 1.08%d
Net investment income ....................... .43% .77%d .73% .61% .28% .37%d
Portfolio turnover rate ...................... 48.04% 33.02% 64.46% 37.59% 8.74% 60.59%

<FN>
a Based on average daily shares outstanding except for the year ended November
30, 2000.
b Total return is not annualized for periods less than one year.
c For the period December 1, 2002 to July 31, 2003.
d Annualized.
e The Fund's advisor fully reimbursed the Fund for a loss on a transaction not
meeting the Fund's investment guidelines, which otherwise would have reduced
total return by .15%.
f For the period December 11, 1998 (effective date) to November 30, 1999.
</FN>

See notes to financial statements.

ANNUAL REPORT 17

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004

FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
COMMON STOCKS 96.0%
AEROSPACE & DEFENSE 8.4%

Honeywell International Inc. ..................................................... 80,000 $ 3,008,800
Northrop Grumman Corp. ........................................................... 40,000 2,104,000
United Technologies Corp. ........................................................ 20,000 1,870,000
------------
6,982,800
------------

AIR FREIGHT & LOGISTICS 2.2%
United Parcel Service Inc., B .................................................... 25,000 1,799,000
------------

BIOTECHNOLOGY 9.0%
a Amgen Inc. ....................................................................... 30,000 1,706,400
a Biogen Idec Inc. ................................................................. 51,000 3,060,000
a Genentech Inc. ................................................................... 55,100 2,682,268
------------
7,448,668
------------

CAPITAL MARKETS 2.0%
Bank of New York Co. Inc. ........................................................ 57,000 1,637,610
------------

COMMERCIAL SERVICES & SUPPLIES 2.2%
Manpower Inc. .................................................................... 42,000 1,829,100
------------

COMMUNICATIONS EQUIPMENT 4.4%
a Cisco Systems Inc. ............................................................... 90,000 1,877,400
a Corning Inc. ..................................................................... 142,000 1,755,120
------------
3,632,520
------------

COMPUTERS & PERIPHERALS 2.1%
International Business Machines Corp. ............................................ 20,000 1,741,400
------------

DIVERSIFIED FINANCIAL SERVICES 2.0%
Citigroup Inc. ................................................................... 37,000 1,631,330
------------

ELECTRIC UTILITIES 2.2%
FPL Group Inc. ................................................................... 27,000 1,817,910
------------

ENERGY EQUIPMENT & SERVICES 2.2%
a Nabors Industries Ltd. ........................................................... 40,000 1,860,000
------------

FOOD PRODUCTS 4.5%
Archer Daniels Midland Co. ....................................................... 115,000 1,774,450
Nestle SA (Switzerland) .......................................................... 7,600 1,942,549
------------
3,716,999
------------

18 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONT.)

Carnival Corp. ................................................................... 42,000 $ 1,957,620
McDonald's Corp. ................................................................. 70,000 1,925,000
------------
3,882,620
------------

INDUSTRIAL CONGLOMERATES 4.9%
General Electric Co. ............................................................. 50,000 1,662,500
Tyco International Ltd. .......................................................... 77,000 2,387,000
------------
4,049,500
------------

INSURANCE 7.6%
American International Group Inc. ................................................ 15,000 1,059,750
Hartford Financial Services Group Inc. ........................................... 28,000 1,822,800
Montpelier Re Holdings Ltd. (Bermuda) ............................................ 49,000 1,733,620
Unitrin Inc. ..................................................................... 40,000 1,666,000
------------
6,282,170
------------

IT SERVICES 2.5%
First Data Corp. ................................................................. 46,000 2,052,060
------------

MACHINERY 2.3%
Eaton Corp. ...................................................................... 30,100 1,945,665
------------

MEDIA 3.5%
Clear Channel Communications Inc. ................................................ 33,000 1,178,100
a Time Warner Inc. ................................................................. 103,000 1,714,950
------------
2,893,050
------------

MULTI-UTILITIES & UNREGULATED POWER 2.4%
Duke Energy Corp. ................................................................ 95,000 2,042,500
------------

OIL & GAS 5.4%
BP PLC, ADR (United Kingdom) ..................................................... 41,000 2,310,760
Exxon Mobil Corp. ................................................................ 47,000 2,176,100
------------
4,486,860
------------

PHARMACEUTICALS 5.6%
Johnson & Johnson Inc. ........................................................... 34,000 1,879,180
Merck & Co. Inc. ................................................................. 35,000 1,587,250
Pfizer Inc. ...................................................................... 37,000 1,182,520
------------
4,648,950
------------

ANNUAL REPORT 19

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONT.)

Union Pacific Corp. .............................................................. 35,000 $ 1,971,900
------------

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 4.1%
Analog Devices Inc. .............................................................. 43,000 1,707,100
Intel Corp. ...................................................................... 70,000 1,706,600
------------
3,413,700
------------

SOFTWARE 7.3%
a Mercury Interactive Corp. ........................................................ 44,000 1,608,640
SAP AG (Germany) ................................................................. 11,000 1,765,350
a Symantec Corp. ................................................................... 58,000 2,712,080
------------
6,086,070
------------

SPECIALTY RETAIL 2.1%
Home Depot Inc. .................................................................. 51,000 1,719,720
------------

TOTAL COMMON STOCKS (COST $60,448,269) ........................................... 79,572,102
------------

SHORT TERM INVESTMENT (COST $4,830,408) 5.8%
MONEY FUND
b Franklin Institutional Fiduciary Trust Money Market Portfolio .................... 4,830,408 4,830,408
------------

TOTAL INVESTMENTS (COST $65,278,677) 101.8% ...................................... 84,402,510
OTHER ASSETS, LESS LIABILITIES (1.8)% ............................................ (1,481,506)
------------

NET ASSETS 100.0% ................................................................ $82,921,004
============

<FN>
a Non-income producing.
b See Note 7 regarding investments in Franklin Institutional Fiduciary
Trust Money Market Portfolio.
</FN>

See notes to financial statements.

20 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
FINANCIAL HIGHLIGHTS
FIDUCIARY SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------

YEAR ENDED JULY 31, YEAR ENDED NOVEMBER 30,
---------------------------------------------------------------------
2004 2003C 2002 2001 2000 1999
---------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)

Net asset value, beginning of year .......... $14.25 $12.48 $18.71 $21.00 $20.81 $13.26
---------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) a ............. (.16) (.07) (.15) (.13) (.15) (.16)
Net realized and unrealized gains (losses) . .77 1.84 (4.37) (2.16) 2.25 7.71
---------------------------------------------------------------------
Total from investment operations ............ .61 1.77 (4.52) (2.29) 2.10 7.55
---------------------------------------------------------------------
Less distributions from net realized gains .. -- -- (1.71) -- (1.91) --
---------------------------------------------------------------------
Net asset value, end of year ................ $14.86 $14.25 $12.48 $18.71 $21.00 $20.81
---------------------------------------------------------------------

Total return b .............................. 4.28% 14.18% (26.65)% (10.90)% 10.22% 56.94%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............. $62,786 $61,026 $59,882 $97,660 $109,385 $72,752
Ratios to average net assets:
Expenses ................................... 1.27% 1.43%d 1.34% 1.32% 1.29% 1.44%
Expenses net of waiver and payments
by affiliate ............................... 1.26% 1.30%d 1.30% 1.30% 1.27% 1.44%
Net investment income (loss) ............... (1.01)% (.89)%d (1.01)% (.67)% (.68)% (.95)%
Portfolio turnover rate ..................... 130.22% 92.58% 178.05% 111.67% 90.01% 130.23%

<FN>
a Based on average daily shares outstanding effective with year ended November
30, 2001.
b Total return is not annualized for periods less than one year.
c For the period December 1, 2002 to July 31, 2003.
d Annualized.
</FN>

See notes to financial statements.

ANNUAL REPORT 21

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004

FIDUCIARY SMALL CAPITALIZATION EQUITY FUND SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
COMMON STOCKS 97.4%
AEROSPACE & DEFENSE 1.3%

a Aviall Inc. ........................................................................ 40,000 $ 802,000
-----------

AIRLINES .8%
a Airtran Holdings Inc. .............................................................. 47,600 530,740
-----------

BIOTECHNOLOGY 4.6%
a Alkermes Inc. ...................................................................... 66,500 717,535
a Dendreon Corp. ..................................................................... 47,100 433,791
a Enzon Pharmaceuticals Inc. ......................................................... 49,900 619,259
a Telik Inc. ......................................................................... 31,300 618,488
a XOMA Ltd. .......................................................................... 130,500 475,020
-----------
2,864,093
-----------

CAPITAL MARKETS 4.4%
a Affiliated Managers Group Inc. ..................................................... 12,450 571,579
a Greenhill & Co. Inc. ............................................................... 20,900 427,405
a Piper Jaffray Cos. Inc. ............................................................ 22,700 925,025
a Tradestation Group Inc. ............................................................ 139,100 827,645
-----------
2,751,654
-----------

CHEMICALS 3.4%
Minerals Technologies Inc. .......................................................... 37,900 2,117,473
-----------

COMMERCIAL BANKS .9%
Texas Regional Bancshares Inc., A ................................................... 12,860 572,141
-----------

COMMERCIAL SERVICES & SUPPLIES 4.8%
a Asset Acceptance Capital Corp. ...................................................... 39,700 683,634
a Charles River Associates Inc. ....................................................... 33,200 1,063,728
a FTI Consulting Inc. ................................................................. 34,200 590,292
National Financial Partners Corp. ................................................... 20,100 676,968
-----------
3,014,622
-----------

COMMUNICATIONS EQUIPMENT 1.2%
a Avanex Corp. ........................................................................ 79,500 234,525
a F5 Networks Inc. .................................................................... 19,300 505,467
-----------
739,992
-----------

COMPUTERS & PERIPHERALS .8%
a Pinnacle Systems Inc. ............................................................... 120,300 475,185
-----------

CONSUMER FINANCE
a Collegiate Funding Services ......................................................... 1,900 26,657
-----------

22 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONT.)

a Financial Federal Corp. ............................................................. 19,200 $ 617,472
a Marlin Business Services Inc. ....................................................... 57,700 949,742
-----------
1,567,214
-----------

DIVERSIFIED TELECOMMUNICATION SERVICES 1.2%
a Commonwealth Telephone Enterprises Inc. ............................................. 16,300 730,240
-----------

ELECTRONIC EQUIPMENT & INSTRUMENTS 4.5%
BEI Technologies Inc. ............................................................... 38,500 924,385
Cognex Corp. ........................................................................ 41,200 1,239,296
a Newport Corp. ....................................................................... 45,400 651,036
-----------
2,814,717
-----------

ENERGY EQUIPMENT & SERVICES 2.4%
a Oceaneering International Inc. ...................................................... 22,800 753,996
a Universal Compression Holdings Inc. ................................................. 23,900 784,159
-----------
1,538,155
-----------

FOOD & STAPLES RETAILING 1.2%
a United Natural Foods Inc. ........................................................... 33,600 728,112
-----------

HEALTH CARE EQUIPMENT & SUPPLIES 5.5%
a Advanced Neuromodulation Systems Inc. ............................................... 19,500 624,975
a ResMed Inc. ......................................................................... 35,800 1,754,200
a Viasys Healthcare Inc. .............................................................. 34,500 522,675
a Wilson Greatbatch Technologies Inc. ................................................. 24,100 527,790
-----------
3,429,640
-----------

HEALTH CARE PROVIDERS & SERVICES 9.3%
a American Healthways Inc. ............................................................ 39,500 1,075,585
a Dendrite International Inc. ......................................................... 64,400 960,204
a Pediatrix Medical Group Inc. ........................................................ 11,000 695,640
a Rotech Healthcare Inc. .............................................................. 43,700 928,625
Select Medical Corp. ................................................................ 54,700 702,348
a Sunrise Senior Living Inc. .......................................................... 19,000 670,700
a United Surgical Partners International Inc. ......................................... 23,700 835,188
-----------
5,868,290
-----------

HOTELS, RESTAURANTS & LEISURE 2.7%
a RARE Hospitality International Inc. ................................................. 27,800 784,238
a Shuffle Master Inc. ................................................................. 28,150 900,518
-----------
1,684,756
-----------

ANNUAL REPORT 23

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONT.)

Direct General Corp. ................................................................ 21,500 $ 639,410
-----------

INTERNET SOFTWARE & SERVICES 5.2%
a 24/7 Real Media Inc. ................................................................ 112,800 429,768
a Kintera Inc. ........................................................................ 53,000 428,240
a United Online Inc. .................................................................. 70,500 1,099,800
a webMethods Inc. ..................................................................... 97,600 465,552
a Websense Inc. ....................................................................... 22,100 843,999
-----------
3,267,359
-----------

IT SERVICES 1.8%
a CACI International Inc., A .......................................................... 14,800 608,428
a Tier Technologies Inc., B ........................................................... 65,500 540,375
-----------
1,148,803
-----------

LEISURE EQUIPMENT & PRODUCTS 1.7%
a K2 Inc. ............................................................................. 60,800 866,400
a Marvel Enterprises Inc. ............................................................. 14,650 191,182
-----------
1,057,582
-----------

MACHINERY 6.2%
Albany International Corp., A ....................................................... 21,500 643,280
a Bucyrus International Inc. .......................................................... 1,100 26,400
Joy Global Inc. ..................................................................... 34,200 1,015,398
a Wabash National Corp. ............................................................... 43,100 1,244,728
Wabtec Corp. ........................................................................ 53,900 980,980
-----------
3,910,786
-----------

MEDIA 1.6%
a Lions Gate Entertainment Corp. (Canada) ............................................. 128,300 982,778
-----------

METALS & MINING 2.6%
Massey Energy Co. ................................................................... 23,900 660,835
Quanex Corp. ........................................................................ 21,500 978,250
-----------
1,639,085
-----------

OIL & GAS 5.0%
a Brigham Exploration Co. ............................................................. 76,600 683,272
a Evergreen Resources Inc. ............................................................ 12,400 507,408
a Forest Oil Corp. .................................................................... 25,200 712,908
a Quicksilver Resources Inc. .......................................................... 39,000 1,235,130
-----------
3,138,718
-----------

PHARMACEUTICALS .8%
a Nektar Therapeutics ................................................................. 29,700 520,938
-----------

24 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONT.)

a Genesee & Wyoming Inc. .............................................................. 36,300 $ 842,160
Heartland Express Inc. .............................................................. 28,500 769,785
-----------
1,611,945
-----------

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 6.0%
a ATMI Inc. ........................................................................... 40,400 822,544
a Credence Systems Corp. .............................................................. 74,800 670,208
a Micrel Inc. ......................................................................... 96,900 995,163
a Microsemi Corp. ..................................................................... 67,300 824,425
a Semtech Corp. ....................................................................... 23,200 460,520
-----------
3,772,860
-----------

SOFTWARE 5.8%
a Embarcadero Technologies Inc. ....................................................... 60,400 459,040
a Manhattan Associates Inc. ........................................................... 24,300 630,828
a Manugistics Group Inc. .............................................................. 241,000 662,750
a RSA Security Inc. ................................................................... 67,400 1,254,988
a Secure Computing Corp. .............................................................. 91,900 635,489
-----------
3,643,095
-----------

SPECIALTY RETAIL 3.0%
a Aeropostale Inc. .................................................................... 22,050 672,084
Claire's Stores Inc. ................................................................ 27,100 624,655
The Pep Boys - Manny, Moe & Jack .................................................... 29,200 604,440
-----------
1,901,179
-----------

TEXTILES, APPAREL & LUXURY GOODS 2.6%
a Deckers Outdoor Corp. ............................................................... 34,600 1,012,050
a Fossil Inc. ......................................................................... 26,650 644,664
-----------
1,656,714
-----------
TOTAL COMMON STOCKS (COST $59,268,136) .............................................. 61,146,933
-----------

SHORT TERM INVESTMENT (COST $683,209) 1.1%
MONEY FUND
b Franklin Institutional Fiduciary Trust Money Market Portfolio ....................... 683,209 683,209
-----------
TOTAL INVESTMENTS (COST $59,951,345) 98.5% .......................................... 61,830,142
OTHER ASSETS, LESS LIABILITIES 1.5% ................................................. 956,318
-----------

NET ASSETS 100.0% ................................................................... $62,786,460
===========

<FN>
a Non-income producing.
b See Note 7 regarding investments in Franklin Institutional Fiduciary Trust
Money Market Portfolio.
</FN>

See notes to financial statements.

ANNUAL REPORT 25

FRANKLIN GLOBAL TRUST
FINANCIAL HIGHLIGHTS
FIDUCIARY EUROPEAN SMALLER COMPANIES FUND
- --------------------------------------------------------------------------------

YEAR ENDED YEAR ENDED
JULY 31, NOVEMBER 30,
-------------------------------------------
2004 2003C 2002 2001E
-------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)

Net asset value, beginning of year ......................... $6.22 $5.27 $6.89 $10.00
-------------------------------------------
Income from investment operations:
Net investment income (loss) a ............................ .02 .08 (.01) (.02)
Net realized and unrealized gains (losses) ................ 1.95 .88 (1.61) (3.09)
-------------------------------------------
Total from investment operations ........................... 1.97 .96 (1.62) (3.11)
-------------------------------------------
Less distributions from net investment income .............. (.09) (.01) -- --
-------------------------------------------
Net asset value, end of year ............................... $8.10 $6.22 $5.27 $6.89
-------------------------------------------

Total return b ............................................. 31.61% 18.20% (23.51)% (31.10)%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............................ $15,834 $12,996 $14,970 $14,495
Ratios to average net assets:
Expenses .................................................. 1.54% 1.84%d 1.61% 2.62%d
Expenses net of waiver and payments by affiliate .......... 1.38% 1.20%d 1.20% 1.20%d
Net investment income (loss) .............................. .24% 2.18%d (.14)% (.28)%d
Portfolio turnover rate .................................... 98.92% 87.83% 131.90% 82.43%

<FN>
a Based on average daily shares outstanding.
b Total return is not annualized for periods less than one year.
c For the period December 1, 2002 to July 31, 2003.
d Annualized.
e For the period January 2, 2001 (effective date) to November 30, 2001.
</FN>

See notes to financial statements.

26 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004

FIDUCIARY EUROPEAN SMALLER COMPANIES FUND INDUSTRY SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
COMMON STOCKS 91.8%
AUSTRIA 2.1%

Andritz AG ................................ Machinery 6,770 $ 326,029
------------

BELGIUM 3.2%
a Mobistar SA ............................... Wireless Telecommunication Services 4,024 266,700
a Solvus SA ................................. Commercial Services & Supplies 16,928 239,471
------------

506,171
------------

DENMARK 2.0%
Bang & Olufsen AS, B ...................... Household Durables 5,635 312,975
------------

FINLAND 5.9%
a Elisa Corp. ............................... Diversified Telecommunication Services 2,660 34,267
Nokian Renkaat OYJ ........................ Auto Components 3,330 315,921
TietoEnator OYJ ........................... IT Services 10,585 294,381
a YIT-Yhtyma OYJ ............................ Construction & Engineering 14,130 282,396
------------
926,965
------------

FRANCE 7.3%
a Alten ..................................... IT Services 1,500 27,089
Beneteau .................................. Leisure Equipment & Products 4,102 256,807
a Gemplus International SA .................. Computers & Peripherals 126,102 252,022
Neopost SA ................................ Office Electronics 5,180 300,597
SR Teleperformance ........................ Media 14,570 323,992
------------
1,160,507
------------

GERMANY 11.0%
Awd Holdings AG ........................... Capital Markets 8,530 300,902
a Freenet.de AG ............................. Internet Software & Services 9,450 176,348
Krones AG ................................. Machinery 2,000 189,020
Leoni AG .................................. Auto Components 7,695 398,832
Puma AG ................................... Textiles, Apparel & Luxury Goods 1,460 344,170
Rheinmetall AG ............................ Industrial Conglomerates 2,400 93,041
United Internet AG ........................ Internet Software & Services 10,398 243,864
------------
1,746,177
------------

GREECE 3.5%
Germanos SA ............................... Specialty Retail 11,250 296,894
Hellenic Duty Free Shops SA ............... Specialty Retail 2,500 46,171
Hellenic Duty Free Shops SA, 144A ......... Specialty Retail 11,600 214,235
------------
557,300
------------

ANNUAL REPORT 27

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONT.)

a Grafton Group PLC ......................... Trading Companies & Distributors 35,668 $ 289,862
Iaws Group PLC ............................ Food Products 3,000 35,757
a Kingspan Group PLC ........................ Building Products 17,000 98,242
------------
423,861
------------

ITALY 6.9%
a Digital Multimedia Tech SpA ............... Diversified Telecommunication Services 12,240 270,530
Ergo Previdenza SpA ....................... Insurance 16,260 75,368
Gruppo Editoriale L'Espresso SpA .......... Media 27,621 149,644
Hera SpA .................................. Electric Utilities 136,175 284,449
Merloni Elettrodomestici SpA .............. Household Durables 17,740 310,760
------------
1,090,751
------------

NETHERLANDS 1.6%
Vedior NV ................................. Commercial Services & Supplies 17,040 250,287
------------

NORWAY 6.6%
a ABG Sundal Collier ASA .................... Capital Markets 285,600 171,322
Aktiv Kapital ASA ......................... Capital Markets 22,015 295,565
a Fast Search & Transfer ASA ................ Internet Software & Services 35,840 45,609
Tandberg ASA .............................. Communications Equipment 28,010 252,034
a Tandberg Television ASA ................... Communications Equipment 41,415 286,883
------------
1,051,413
------------

SPAIN 3.0%
Aldeasa SA ................................ Specialty Retail 7,050 202,860
Gamesa Corporacion Tecnologica SA ......... Electrical Equipment 19,755 277,797
------------
480,657
------------

SWEDEN 6.4%
Getinge AB, B ............................. Health Care Equipment & Supplies 28,010 323,028
a Song Networks Holding AB .................. Diversified Telecommunication Services 34,680 193,874
a Telelogic AB .............................. Software 141,620 247,294
a Transcom Worldwide SA, B .................. Commercial Services & Supplies 67,130 241,440
------------
1,005,636
------------

SWITZERLAND 11.1%
a Actelion Ltd. ............................. Biotechnology 2,335 223,124
Kuoni Reisen Holding AG, B ................ Hotels, Restaurants & Leisure 750 306,601
a Leica Geosystems AG ....................... Electronic Equipment & Instruments 990 195,779
a Micronas Semiconductor Holding AG ......... Semiconductors & Semiconductor Equipment 5,680 236,195
Phonak Holding AG ......................... Health Care Equipment & Supplies 9,400 270,020
PublicGroupe SA ........................... Media 830 234,854

28 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONT.)

a Temenos Group AG .......................... Software 1,225 $ 10,006
a Temenos Group AG, 144A .................... Software 33,510 273,717
------------
1,750,296
------------

UNITED KINGDOM 18.5%
Kensington Group PLC ...................... Consumer Finance 29,350 203,612
Laird Group PLC ........................... Electronic Equipment & Instruments 55,060 276,842
a lastminute.com PLC ........................ Commercial Services & Supplies 70,675 168,359
Mothercare PLC ............................ Multiline Retail 45,270 263,839
a Northgate Information Solutions PLC ....... IT Services 252,290 254,621
a Pace Micro Technology PLC ................. Household Durables 220,525 238,603
PHS Group PLC ............................. Commercial Services & Supplies 215,800 294,315
Premier Farnell PLC ....................... Electronic Equipment & Instruments 69,375 266,502
Spectris PLC .............................. Electrical Equipment 33,350 249,252
a Spirent PLC ............................... Communications Equipment 221,350 221,382
Taylor Nelson Sofres PLC .................. Media 47,550 182,878
Whatman PLC ............................... Chemicals 84,030 315,317
------------
2,935,522
------------
TOTAL COMMON STOCKS (COST $12,122,440) .... 14,524,547
------------

PREFERRED STOCKS 3.3%
GERMANY 3.3%
Dragerwerk AG, pfd. ....................... Health Care Equipment & Supplies 4,430 235,741
Jungheinrich AG, pfd. ..................... Machinery 13,100 283,891
------------

TOTAL PREFERRED STOCKS (COST $512,880) .... 519,632
------------

TOTAL LONG TERM INVESTMENTS (COST $12,635,320) 15,044,179
------------

SHORT TERM INVESTMENT (COST $322,615) 2.0%
MONEY FUND
b Franklin Institutional Fiduciary Trust Money Market
Portfolio ................................. 322,615 322,615
------------

TOTAL INVESTMENTS (COST $12,957,935) 97.1% 15,366,794
OTHER ASSETS, LESS LIABILITIES 2.9% ....... 466,754
------------

NET ASSETS 100.0% ......................... $15,833,548
============

<FN>
a Non-income producing.
b See Note 7 regarding investments in Franklin Institutional Fiduciary Trust
Money Market Portfolio.
</FN>

See notes to financial statements.

ANNUAL REPORT 29

FRANKLIN GLOBAL TRUST
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2004
- --------------------------------------------------------------------------------

FIDUCIARY FIDUCIARY
LARGE FIDUCIARY EUROPEAN
CAPITALIZATION SMALL SMALLER
GROWTH AND CAPITALIZATION COMPANIES
INCOME FUND EQUITY FUND FUND
--------------------------------------------
Assets:
Investments in securities:

Cost-Unaffiliated issuers .................................... $60,448,269 $ 59,268,136 $12,635,320
Cost-Sweep Money Fund (Note 7) ............................... 4,830,408 683,209 322,615
============================================

Value-Unaffiliated issuers ................................... 79,572,102 61,146,933 15,044,179
Value-Sweep Money Fund (Note 7) .............................. 4,830,408 683,209 322,615
Cash .......................................................... -- -- 536,391
Receivables:
Investment securities sold ................................... -- 1,026,110 136,848
Capital shares sold .......................................... 10,000 6,750 --
Dividends .................................................... 36,993 -- 32,280
--------------------------------------------
Total assets ............................................. 84,449,503 62,863,002 16,072,313
--------------------------------------------
Liabilities:
Payables:
Investment securities purchased .............................. 1,455,429 -- 215,191
Affiliates ................................................... 64,854 67,564 16,778
Professional fees ............................................ 7,483 8,198 4,869
Other liabilities ............................................. 733 780 1,927
--------------------------------------------
Total liabilities ........................................ 1,528,499 76,542 238,765
--------------------------------------------
Net assets, at value .................................... $82,921,004 $ 62,786,460 $15,833,548
============================================

Net assets consist of:
Undistributed net investment income (loss) .................... $ 64,817 $ -- $ 28,864
Net unrealized appreciation (depreciation) .................... 19,123,833 1,878,797 2,410,596
Accumulated net realized gain (loss) .......................... 3,394,143 (10,168,131) (8,145,621)
Capital shares ................................................ 60,338,211 71,075,794 21,539,709
--------------------------------------------
Net assets, at value .................................... $82,921,004 $ 62,786,460 $15,833,548
============================================
Shares outstanding ............................................. 12,256,770 4,224,091 1,955,364
============================================
Net asset value and maximum offering price per share a.......... $6.77 $14.86 $8.10
============================================

<FN>
a Redemption price is equal to net asset value less any applicable redemption
fees retained by the Fund.
</FN>

See notes to financial statements.

30 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
Financial Statements (CONTINUED)
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2004
- --------------------------------------------------------------------------------

Unaffiliated issuers .............................................. $ 1,152,996 $ 158,420 $ 254,709
Sweep Money Fund (Note 7) ......................................... 10,928 24,718 2,041
Interest ........................................................... 433 956 12
----------------------------------------
Total investment income ....................................... 1,164,357 184,094 256,762
----------------------------------------
Expenses:
Management fees (Note 3) ........................................... 611,649 718,638 158,018
Administrative fees (Note 3) ....................................... 164,341 146,210 31,687
Transfer agent fees (Note 3) ....................................... 1,232 3,325 1,929
Custodian fees (Note 4) ............................................ 4,701 414 11,976
Reports to shareholders ............................................ 10,851 8,000 4,273
Registration and filing fees ....................................... 26,233 25,007 15,138
Professional fees .................................................. 17,508 20,079 19,616
Trustees' fees and expenses ........................................ 21 20 5
Other .............................................................. 3,223 3,319 1,289
----------------------------------------
Total expenses ................................................ 839,759 925,012 243,931
Expense reductions (Note 4) ................................... -- -- (303)
Expenses waived/paid by affiliate (Note 3) .................... (31,078) (3,001) (24,656)
----------------------------------------
Net expenses ................................................. 808,681 922,011 218,972
----------------------------------------
Net investment income (loss) ................................ 355,676 (737,917) 37,790
----------------------------------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ....................................................... 3,923,010 12,597,601 3,384,284
Foreign currency transactions ..................................... (4,912) -- (22,843)
----------------------------------------
Net realized gain (loss) ..................................... 3,918,098 12,597,601 3,361,441
Net unrealized appreciation (depreciation) on:
Investments ....................................................... 7,336,223 (9,124,411) 255,320
Translation of assets and liabilities denominated in foreign currencies -- -- (1,605)
----------------------------------------
Net unrealized appreciation (depreciation) ................... 7,336,223 (9,124,411) 253,715
----------------------------------------
Net realized and unrealized gain (loss) ............................. 11,254,321 3,473,190 3,615,156
----------------------------------------
Net increase (decrease) in net assets resulting from operations ..... $11,609,997 $ 2,735,273 $3,652,946
========================================

<FN>
a Net of foreign taxes of $18,902, $302, and $37,254 for the Fiduciary Large
Capitalization Growth and Income Fund, the Fiduciary Small Capitalization
Equity Fund, and the Fiduciary European Smaller Companies Fund, respectively.
</FN>

See notes to financial statements.

ANNUAL REPORT 31

FRANKLIN GLOBAL TRUST
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 2004,
THE PERIOD DECEMBER 1, 2002 TO JULY 31, 2003,
AND THE YEAR ENDED NOVEMBER 30, 2002
- --------------------------------------------------------------------------------

FIDUCIARY LARGE CAPITALIZATION
GROWTH AND INCOME FUND
----------------------------------------------
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31, 2004 JULY 31, 2003 NOVEMBER 30, 2002
----------------------------------------------
Increase (decrease) in net assets:
Operations:

Net investment income ......................................... $ 355,676 $ 310,798 $ 478,800
Net realized gain (loss) from investments and foreign currency
transactions ................................................. 3,918,098 3,106,616 (3,106,936)
Net unrealized appreciation (depreciation) on investments ..... 7,336,223 83,381 (10,195,202)
----------------------------------------------
Net increase (decrease) in net assets resulting
from operations ......................................... 11,609,997 3,500,795 (12,823,338)
Distributions to shareholders from:
Net investment income ......................................... (329,516) (405,680) (505,369)
Net realized gains ............................................ (523,650) -- (3,665,800)
----------------------------------------------
Total distributions to shareholders ............................ (853,166) (405,680) (4,171,169)
Capital share transactions (Note 2) ............................ 1,479,699 6,685,439 3,264,124
----------------------------------------------
Net increase (decrease) in net assets .................... 12,236,530 9,780,554 (13,730,383)
Net assets:
Beginning of year .............................................. 70,684,474 60,903,920 74,634,303
----------------------------------------------
End of year .................................................... $ 82,921,004 $70,684,474 $ 60,903,920
==============================================
Undistributed net investment income included in net assets:
End of year .................................................... $ 64,817 $ 38,657 $ 133,554
==============================================

See notes to financial statements.

32 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS (CONT.)
FOR THE YEAR ENDED JULY 31, 2004,
THE PERIOD DECEMBER 1, 2002 TO JULY 31, 2003,
AND THE YEAR ENDED NOVEMBER 30, 2002
- --------------------------------------------------------------------------------

FIDUCIARY SMALL CAPITALIZATION
EQUITY FUND
----------------------------------------------
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31, 2004 JULY 31, 2003 NOVEMBER 30, 2002
----------------------------------------------
Increase (decrease) in net assets:
Operations:

Net investment income (loss) ................................... $ (737,917) $ (314,034) $ (813,561)
Net realized gain (loss) from investments ...................... 12,597,601 1,755,911 (24,521,643)
Net unrealized appreciation (depreciation) on investments ...... (9,124,411) 5,141,113 (562,393)
---------------------------------------------
Net increase (decrease) in net assets resulting
from operations .......................................... 2,735,273 6,582,990 (25,897,597)
Distributions to shareholders from net realized gains ........... -- -- (8,816,673)
Capital share transactions (Note 2) ............................. (974,561) (5,439,357) (3,063,862)
---------------------------------------------
Net increase (decrease) in net assets ..................... 1,760,712 1,143,633 (37,778,132)
Net assets:
Beginning of year ............................................... 61,025,748 59,882,115 97,660,247
---------------------------------------------
End of year ..................................................... $62,786,460 $61,025,748 $ 59,882,115
=============================================
Undistributed net investment income (loss) included in net assets:
End of year ..................................................... $ -- $ -- $ --
=============================================

See notes to financial statements.

ANNUAL REPORT 33

FIDUCIARY EUROPEAN SMALLER
COMPANIES FUND
----------------------------------------------
YEAR PERIOD YEAR
ENDED ENDED ENDED
JULY 31, 2004 JULY 31, 2003 NOVEMBER 30, 2002
----------------------------------------------
Increase (decrease) in net assets:
Operations:

Net investment income (loss) .................................. $ 37,790 $ 177,516 $ (22,102)
Net realized gain (loss) from investments and foreign
currency transactions ........................................ 3,361,441 81,574 (6,668,604)
Net unrealized appreciation (depreciation) on investments
and translation of assets and liabilities denominated in
foreign currencies ........................................... 253,715 1,516,368 1,611,878
----------------------------------------------
Net increase (decrease) in net assets resulting
from operations .......................................... 3,652,946 1,775,458 (5,078,828)
Distributions to shareholders from net investment income ....... (167,068) (21,366) --
Capital share transactions (Note 2) ............................ (648,656) (3,727,425) 5,553,659
----------------------------------------------
Net increase (decrease) in net assets ..................... 2,837,222 (1,973,333) 474,831
Net assets:
Beginning of year .............................................. 12,996,326 14,969,659 14,494,828
----------------------------------------------
End of year .................................................... $15,833,548 $12,996,326 $14,969,659
==============================================
Undistributed net investment income included in net assets:
End of year .................................................... $ 28,864 $ 167,049 $ 21,268
==============================================

See notes to financial statements.

34 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Global Trust (the Trust) is registered under the Investment Company Act
of 1940 as an open-end investment company, consisting of seven separate series.
All funds included in this report (the Funds) are diversified. The financial
statements of the remaining funds in the series are presented separately. The
investment objectives of the Funds included in this report are:

GROWTH GROWTH AND INCOME
- ----------------------------------------------------------------------------------------------------

Fiduciary European Smaller Companies Fund Fiduciary Large Capitalization Growth and Income Fund
Fiduciary Small Capitalization Equity Fund

On July 24, 2003, the Fiduciary Large Capitalization Growth and Income Fund, the
Fiduciary Small Capitalization Equity Fund, and the Fiduciary European Smaller
Companies Fund, newly created series of the Trust, acquired the net assets of
the FTI Large Capitalization Growth and Income Fund, the FTI Small
Capitalization Equity Fund, and the FTI European Smaller Companies Fund,
respectively, (the Acquired Funds) pursuant to a plan of reorganization approved
by each of the Acquired Funds' shareholders. The mergers were accomplished by
tax-free exchanges of the shares priced at net asset value for the Acquired
Funds.

As a result of the reorganization, the fiscal year end of the Acquired Funds
changed from November 30 of each year to July 31.

The following summarizes the Funds' significant accounting policies.

A. SECURITY VALUATION

Securities listed or traded on a recognized national exchange are valued at the
last reported sales price. Securities listed or traded on NASDAQ are valued at
their official closing price. Over-the-counter securities and listed securities
for which no sale is reported are valued within the range of the latest quoted
bid and asked prices. Foreign securities are valued at the close of trading of
the foreign exchange or the NYSE, whichever is earlier. If events occur that
materially affect the values of securities after the prices or foreign exchange
rates are determined, but prior to 4:00 p.m. Eastern time or the close of
trading on the NYSE, whichever is earlier, or if market quotations are deemed
not readily available or reliable, the securities will be valued at fair value.
Investments in open-end mutual funds are valued at the closing net asset value.
All security valuation procedures are approved by the 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.

ANNUAL REPORT 35

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.)

B. FOREIGN CURRENCY TRANSLATION (CONTINUED)

The Funds do 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.

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 Funds purchase or sell foreign securities they 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 on a specified date. Realized and unrealized gains and losses on these
contracts are included in the Statements 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.

D. INCOME TAXES

No provision has been made for income taxes because each fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute substantially all of its taxable income. Fund distributions to
shareholders are determined on a tax basis and may differ from net investment
income and realized gains for financial reporting purposes.

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.
Certain income from foreign securities is recorded as soon as information is
available. Interest income and estimated expenses are accrued daily. Dividend
income and distributions to shareholders are recorded on the ex-dividend date.

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

36 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.)

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

Effective June 1, 2004, redemptions and exchanges of Funds' shares held five
trading days or less may be subject to the Funds' redemption fee, which is 2% of
the amount redeemed. Such fees are retained by the Funds and accounted for as
additional paid-in capital. There were no redemption fees for the year.

H. 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 July 31, 2004, there were an unlimited number of shares authorized (no par
value). Transactions in the Funds' shares were as follows:

FIDUCIARY
LARGE CAPITALIZATION
GROWTH AND INCOME FUND
------------------------------
SHARES AMOUNT
------------------------------
Year ended July 31, 2004

Shares sold ................................................. 1,618,139 $ 10,306,976
Shares issued in reinvestment of distributions .............. 81,290 520,223
Shares redeemed ............................................. (1,395,581) (9,347,500)
------------------------------
Net increase (decrease) ..................................... 303,848 $ 1,479,699
==============================
Period ended July 31, 2003 a
Shares sold ................................................. 1,650,639 $ 9,256,706
Shares issued in reinvestment of distributions .............. 676 3,691
Shares redeemed ............................................. (475,943) (2,574,958)
------------------------------
Net increase (decrease) ..................................... 1,175,372 $ 6,685,439
==============================

ANNUAL REPORT 37

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

2. SHARES OF BENEFICIAL INTEREST (CONT.)

FIDUCIARY
LARGE CAPITALIZATION
GROWTH AND INCOME FUND
-------------------------------
SHARES AMOUNT
-------------------------------
Year ended November 30, 2002

Shares sold ................................................................. 1,194,377 $ 7,435,837
Shares issued in reinvestment of distributions .............................. 525,396 3,577,486
Shares redeemed ............................................................. (1,293,577) (7,749,199)
-------------------------------
Net increase (decrease) ..................................................... 426,196 $ 3,264,124
===============================

FIDUCIARY
SMALL CAPITALIZATION EQUITY
FUND
-------------------------------
SHARES AMOUNT
-------------------------------
Year ended July 31, 2004
Shares sold ................................................................. 694,405 $ 11,021,742
Shares redeemed ............................................................. (752,503) (11,996,303)
-------------------------------
Net increase (decrease) ..................................................... (58,098) $ (974,561)
===============================
Period ended July 31, 2003 a
Shares sold ................................................................. 402,877 $ 5,205,548
Shares redeemed ............................................................. (920,804) (10,644,905)
-------------------------------
Net increase (decrease) ..................................................... (517,927) $ (5,439,357)
===============================
Year ended November 30, 2002
Shares sold ................................................................. 883,691 $ 14,398,859
Shares issued in reinvestment of distributions .............................. 444,109 7,536,533
Shares redeemed ............................................................. (1,746,205) (24,999,254)
-------------------------------
Net increase (decrease) ..................................................... (418,405) $ (3,063,862)
===============================

FIDUCIARY
EUROPEAN SMALLER COMPANIES
FUND
-------------------------------
SHARES AMOUNT
-------------------------------
Year ended July 31, 2004
Shares sold ................................................................. 405,453 $ 3,376,394
Shares issued in reinvestment of distributions .............................. 1,116 9,063
Shares redeemed ............................................................. (540,673) (4,034,113)
-------------------------------
Net increase (decrease) ..................................................... (134,104) $ (648,656)
===============================

38 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

2. SHARES OF BENEFICIAL INTEREST (CONT.)

FIDUCIARY
EUROPEAN SMALLER COMPANIES
FUND
-------------------------------
SHARES AMOUNT
-------------------------------
Period ended July 31, 2003 a

Shares sold ................................................................. 254,685 $ 1,494,257
Shares issued in reinvestment of distributions .............................. 185 938
Shares redeemed ............................................................. (1,004,877) (5,222,620)
-------------------------------
Net increase (decrease) ..................................................... (750,007) $ (3,727,425)
===============================
Year ended November 30, 2002
Shares sold ................................................................. 1,596,356 $ 10,745,802
Shares redeemed ............................................................. (861,356) (5,192,143)
-------------------------------
Net increase (decrease) ..................................................... 735,000 $ 5,553,659
===============================

<FN>
a For the period December 1, 2002 to July 31, 2003.
</FN>

3. TRANSACTIONS WITH AFFILIATES

Certain officers and trustees of the Funds are also officers and/or directors of
the following entities:

ENTITY AFFILIATION
- ------------------------------------------------------------------------------------

Fiduciary International Inc. (Fiduciary) Investment manager
Franklin Templeton Services LLC (FT Services) Administrative manager
Templeton/Franklin Investment Services Inc. (Distributors) Principal underwriter
Franklin/Templeton Investor Services LLC (Investor Services) Transfer agent

The Funds pay an investment management fee to Fiduciary based on the average
daily net assets of each fund as follows:

ANNUALIZED
FEE
RATE
- -----------------------------------------------------------------------------
Fiduciary Large Capitalization Growth and Income Fund ........... .75%
Fiduciary Small Capitalization Equity Fund ...................... 1.00%
Fiduciary European Smaller Companies Fund ....................... 1.00%

The Funds pay an administrative fee to FT services of .20% per year of the
average daily net assets of each fund.

FT Services agreed in advance to voluntarily waive a portion of administrative
fees, as noted in the Statements of Operations. Total expenses waived by FT
Services are not subject to reimbursement by the Funds subsequent to the Funds'
fiscal year end. Effective November 30, 2003, the waiver was discontinued for
the Funds.

ANNUAL REPORT 39

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES (CONT.)

The Funds reimburse Distributors up to .25% per year of their average daily net
assets for costs incurred in marketing the Funds' shares under a Rule 12b-1
plan. No payments were made by the Funds for the year ended July 31, 2004.

The Funds paid transfer agent fees as noted in the Statements of Operations, of
which the following amounts were paid to Investor Services:

FIDUCIARY
LARGE FIDUCIARY FIDUCIARY
CAPITALIZATION SMALL EUROPEAN
GROWTH AND CAPITALIZATION SMALLER
INCOME FUND EQUITY FUND COMPANIES FUND
-------------------------------------------------
$364 $1,164 $1,238

4. EXPENSE OFFSET ARRANGEMENTS

The Funds have entered into an arrangement with their custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Funds' custodian expenses. During the year ended July 31, 2004, the
custodian fees were reduced as noted in the Statements of Operations.

5. INCOME TAXES

At July 31, 2004, the following funds had tax basis capital losses which may be
carried over to offset future capital gains. Such losses expire as follows:

FIDUCIARY FIDUCIARY
SMALL EUROPEAN
CAPITALIZATION SMALLER
EQUITY FUND COMPANIES FUND
------------------------------
Capital loss carryovers expiring in:

2009 ................................................... $ -- $1,509,077
2010 ................................................... 9,607,581 6,556,559
2011 ................................................... -- 11,932
------------------------------
$ 9,607,581 $8,077,568
==============================

40 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. INCOME TAXES (CONT.)

At July 31, 2004, the Fiduciary Large Capitalization Growth and Income Fund and
the Fiduciary European Smaller Companies Fund had deferred currency losses
occurring subsequent to October 31, 2003 of $4,912 and $19,100, respectively.
For tax purposes, such losses will be reflected in the year ending July 31,
2005.

The tax character of distributions paid during the years ended July 31, 2004 and
2003 and November 30, 2002, was as follows:

FIDUCIARY LARGE CAPITALIZATION
GROWTH AND INCOME FUND
----------------------------------
2004 2003 2002
----------------------------------
Distributions paid from:

Ordinary income .................................................... $853,166 $ 405,680 $ 506,234
Long term capital gain ............................................. -- -- 3,664,935
----------------------------------
$853,166 $ 405,680 $4,171,169
==================================

FIDUCIARY SMALL CAPITALIZATION
EQUITY FUND
----------------------------------
2004 2003 2002
----------------------------------
Distributions paid from-long term capital gain ............................. $ -- $ -- $8,816,673
==================================

FIDUCIARY EUROPEAN
SMALLER COMPANIES FUND
----------------------------------
2004 2003 2002
----------------------------------
Distributions paid from-ordinary income .................................... $167,068 $ 21,366 $ --
==================================

Net investment income (loss) differs for financial statement and tax purposes
primarily due to differing treatment of foreign currency transactions.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales and foreign currency
transactions.

ANNUAL REPORT 41

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. INCOME TAXES (CONT.)

At July 31, 2004, the cost of investments, net unrealized appreciation
(depreciation), undistributed ordinary income and undistributed long term
capital gains for income tax purposes were as follows:

FIDUCIARY
LARGE FIDUCIARY FIDUCIARY
CAPITALIZATION SMALL EUROPEAN
GROWTH AND CAPITALIZATION SMALLER
INCOME FUND EQUITY FUND COMPANIES FUND
-------------------------------------------------

Cost of investments ......................................... $65,278,677 $60,511,895 $13,012,051
=================================================
Unrealized appreciation ..................................... $19,726,708 $ 8,219,526 $ 3,275,684
Unrealized depreciation ..................................... (602,875) (6,901,279) (920,941)
-------------------------------------------------
Net unrealized appreciation (depreciation) .................. $19,123,833 $ 1,318,247 $ 2,354,743
=================================================

Undistributed ordinary income ............................... $ 1,035,816 $ -- $ 28,864
Undistributed long term capital gains ....................... 2,428,056 -- --
-------------------------------------------------
Distributable earnings ...................................... $ 3,463,872 $ -- $ 28,864
=================================================

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short-term securities) for the
year ended July 31, 2004 were as follows:

FIDUCIARY
LARGE FIDUCIARY FIDUCIARY
CAPITALIZATION SMALL EUROPEAN
GROWTH AND CAPITALIZATION SMALLER
INCOME FUND EQUITY FUND COMPANIES FUND
-------------------------------------------------

Purchases ................................................... $38,528,597 $89,589,783 $15,238,572
Sales ....................................................... $40,115,289 $91,330,652 $16,403,165

7. INVESTMENTS IN FRANKLIN INSTITUTIONAL FIDUCIARY TRUST
MONEY MARKET PORTFOLIO

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

42 ANNUAL REPORT

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

8. REGULATORY MATTERS

MASSACHUSETTS ADMINISTRATIVE PROCEEDING
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")
claiming violations of the Massachusetts Uniform Securities Act ("Massachusetts
Act") with respect to an alleged arrangement to permit market timing (the "Mass.
Proceeding"). On February 17, 2004, the Company filed an answer denying all
violations of the Massachusetts Act.

U.S. SECURITIES AND EXCHANGE COMMISSION (SEC) SETTLEMENT
On August 2, 2004, the Company announced that an agreement had been reached by
an affiliate of the Funds' investment manager with the SEC that resolved the
issues resulting from the SEC's investigation of market timing activity. The SEC
issued an "order instituting administrative and cease-and-desist proceedings
pursuant to sections 203(e) and 203(k) of the Investment Advisers Act of 1940
and sections 9(b) and 9(f) of the Investment Company Act of 1940, making
findings and imposing remedial sanctions and a cease and desist order" (the
"Order"). The SEC's Order concerns the activities of a limited number of third
parties that ended in 2000 and those that are the subject of the Mass.
Proceeding described above.

Under the terms of the SEC's Order, pursuant to which an affiliate of the Funds'
investment manager neither admits nor denies any wrongdoing, an affiliate of the
Funds' investment manager has agreed to pay $50 million, of which $20 million is
a civil penalty, to be distributed to certain fund shareholders in accordance
with a plan to be developed by an Independent Distribution Consultant. At this
time, it is unclear whether shareholders of all funds will receive distributions
or whether all shareholders of any particular fund will receive distributions.
The SEC Order also requires an affiliate of the Funds' investment manager to,
among other things, enhance and periodically review compliance policies and
procedures.

OTHER GOVERNMENTAL INVESTIGATIONS
As part of ongoing investigations by 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, the West
Virginia Attorney General, the Vermont Department of Banking, Insurance,
Securities, and Health Care Administration and the National Association of
Securities Dealers, relating to certain practices in the mutual fund industry,
including late trading, market timing and payments to securities dealers who
sell fund shares, 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 has
been 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.

ANNUAL REPORT 43

FRANKLIN GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

8. REGULATORY MATTERS (CONT.)

OTHER GOVERNMENTAL INVESTIGATIONS (CONT.)
The Staff of the SEC has also informed the Company that it is considering
recommending a civil action or proceeding against an affiliate of the Funds'
investment manager and Franklin Templeton Distributors, Inc. concerning payments
to securities dealers who sell fund shares (commonly referred to as "revenue
sharing"). The staff of the California Attorney General's Office (CAGO) also has
advised the Company that it is authorized to bring a civil action against
Franklin Resources, Inc. and Franklin Templeton Distributors, Inc. arising from
the same events. Even though the Company currently believes that the charges the
SEC staff and CAGO staff are contemplating are unwarranted, it also believes
that it is in the best interest of the Company and fund shareholders to resolve
these issues voluntarily, to the extent the Company can reasonably do so.

OTHER LEGAL PROCEEDINGS
The Trust, in addition to other entities within Franklin Templeton Investments,
including the Company and certain of its subsidiaries, other funds, and current
and former officers, employees, and directors have been named in multiple
lawsuits in different federal courts in Nevada, California, Illinois, New York
and Florida, alleging violations of various federal securities laws and seeking,
among other things, monetary damages and costs. Specifically, the lawsuits claim
breach of duty with respect to alleged arrangements to permit market timing
and/or late trading activity, or breach of duty with respect to the valuation of
the portfolio securities of certain funds managed by Company subsidiaries,
resulting in alleged market timing activity. The majority of these lawsuits
duplicate, in whole or in part, the allegations asserted in the Mass. Proceeding
detailed above. The lawsuits are styled as class actions or derivative actions
on behalf of either the named funds or the Company.

In addition, the Company and certain of its subsidiaries, as well as certain
current and former officers, employees, and directors have been named in
multiple lawsuits alleging violations of various securities laws and pendent
state law claims relating to the disclosure of directed brokerage payments
and/or payment of allegedly excessive commissions and advisory fees. These
lawsuits are styled as class actions and derivative actions.

The Company's management strongly believes that the claims made in each of these
lawsuits are without merit and intends to vigorously defend against them.

The Company cannot predict with certainty the eventual outcome of the foregoing
Mass. Proceeding, other governmental investigations or other legal proceedings.
The impact, if any, of these matters on the Trust is uncertain at this time. If
the Company determines that it bears responsibility for any unlawful or
inappropriate conduct that caused losses to the Trust, it is committed to making
the Trust or its shareholders whole, as appropriate.

44 ANNUAL REPORT

FRANKLIN GLOBAL TRUST

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FRANKLIN GLOBAL TRUST

In our opinion, the accompanying statements of assets and liabilities, including
the statements 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 Fiduciary Large Capitalization
Growth and Income Fund, Fiduciary Small Capitalization Equity Fund and Fiduciary
European Smaller Companies Fund, separate portfolios of the Franklin Global
Trust (hereafter referred to as the "Funds") at July 31, 2004, the results of
each of their operations for the year then ended, the changes in each of their
net assets and the financial highlights for each of the periods presented, 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 Funds' 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 audits 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 July 31, 2004 by
correspondence with the custodian, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 9, 2004

ANNUAL REPORT 45

FRANKLIN GLOBAL TRUST

TAX DESIGNATION (UNAUDITED)

Under Section 852(b)(3)(c) of the Internal Revenue Code (Code), the Fiduciary
Large Capitalization Growth and Income Fund hereby designates $2,428,056 as a
capital gain dividend for the fiscal year ended July 31, 2004.

Under Section 854(b)(2) of the Code, the Fiduciary Large Capitalization Growth
and Income Fund and the Fiduciary European Smaller Companies Fund hereby
designate up to a maximum of $1,171,083 and $280,454, respectively, as qualified
dividends for purposes of the maximum rate under Section 1(h)(11) of the Code
for the fiscal year ended July 31, 2004.

In January 2005, shareholders will receive Form 1099-DIV which will include
their share of qualified dividends distributed during the calendar year 2004.
Shareholders are advised to check with their tax advisors for information on the
treatment of these amounts on their individual income tax returns.

Under Section 854(b)(2) of the Code, the Fiduciary Large Capitalization Growth
and Income Fund hereby designates 100.00% of the ordinary income dividends as
income qualifying for the dividends received deduction for the fiscal year ended
July 31, 2004.

At July 31, 2004, more than 50% of the Fiduciary European Smaller Companies
Fund's total assets were invested in securities of foreign issuers. In most
instances, foreign taxes were withheld from dividends paid to the fund on these
investments. The fund elects to treat foreign taxes paid under Section 853 of
the Code. This election will allow shareholders of record in December 2004, to
treat their proportionate share of foreign taxes paid by the fund as having been
paid directly by them. The shareholder shall consider these amounts as foreign
taxes paid in the tax year in which they receive the fund distribution.

The foreign tax information will be disclosed in the January 31, 2005,
semi-annual report of the fund.

46 ANNUAL REPORT

BOARD MEMBERS AND OFFICERS
- --------------------------------------------------------------------------------

The name, age 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 elected and qualified.

INDEPENDENT BOARD MEMBERS

FRANK H. ABBOTT, III (83) Trustee Since 2000 111 None
One Franklin Parkway
San Mateo, CA 94403-1906

HARRIS J. ASHTON (72) Trustee Since 2000 140 Director, Bar-S Foods (meat
One Franklin Parkway packing 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 (76) Trustee Since 2000 49 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
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.
- ---------------------------------------------------------------------------------------------------------------

S. JOSEPH FORTUNATO (72) Trustee Since 2000 141 None
One Franklin Parkway
San Mateo, CA 94403-1906

EDITH E. HOLIDAY (52) Trustee Since 2000 96 Director, Amerada Hess
One Franklin Parkway Corporation (exploration and
San Mateo, CA 94403-1906 refining of oil and gas); H.J.
Heinz Company (processed foods
and allied products); RTI
International Metals, Inc.
(manufacture and distribution
of titanium); and Canadian
National Railway (railroad).

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).
- ---------------------------------------------------------------------------------------------------------------

ANNUAL REPORT 47

FRANK W.T. LAHAYE (75) Trustee Since 2000 113 Director, The California Center
One Franklin Parkway for Land Recycling
San Mateo, CA 94403-1906 (redevelopment).

GORDON S. MACKLIN (76) Trustee Since 2000 140 Director, White Mountains
One Franklin Parkway Insurance Group, Ltd. (holding
San Mateo, CA 94403-1906 company); Martek Biosciences
Corporation; MedImmune, Inc.
(biotechnology); and
Overstock.com (Internet
services); and FORMERLY,
Director, MCI Communication
Corporation (subsequently
known as MCI WorldCom, Inc.
and WorldCom, Inc.)
(communications services)
(1988-2002) and Spacehab, Inc.
(aerospace services)
(1994-2003).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Deputy Chairman, White Mountains Insurance Group, Ltd. (holding company); and FORMERLY, Chairman, White River
Corporation (financial services) (1993-1998) and Hambrecht & Quist Group (investment banking) (1987-1992); and
President, National Association of Securities Dealers, Inc. (1970-1987).
- ---------------------------------------------------------------------------------------------------------------

INTERESTED BOARD MEMBERS AND OFFICERS

NUMBER OF
PORTFOLIOS IN FUND
LENGTH OF COMPLEX OVERSEEN
NAME, AGE AND ADDRESS POSITION TIME SERVED BY BOARD MEMBER* OTHER DIRECTORSHIPS HELD
- ---------------------------------------------------------------------------------------------------------------
**HARMON E. BURNS (59) Trustee and Since 2000 36 None
One Franklin Parkway Vice President
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.; Director,
Franklin Investment Advisory Services, 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 49 of the investment companies in Franklin
Templeton Investments.
- ---------------------------------------------------------------------------------------------------------------

**CHARLES B. JOHNSON (71) Trustee and Since 2000 140 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.; Director, Fiduciary Trust Company International; and officer and/or
director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of
46 of the investment companies in Franklin Templeton Investments.
- ---------------------------------------------------------------------------------------------------------------

48 ANNUAL REPORT

**RUPERT H. JOHNSON, JR. (63) Trustee, Trustee and 123 None
One Franklin Parkway President and President since
San Mateo, CA 94403-1906 Chief 2000 and Chief
Executive Executive
Officer - 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. and Franklin Investment
Advisory Services, 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 49 of the
investment companies in Franklin Templeton Investments.
- ---------------------------------------------------------------------------------------------------------------

JAMES M. DAVIS (52) Chief Since Not Applicable None
One Franklin Parkway Compliance July 2004
San Mateo, CA 94403-1906 Officer

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 51 of the investment companies in Franklin Templeton Investments; Director, Global Compliance,
Franklin Resources, Inc., and FORMERLY, Director of Compliance, Franklin Resources, Inc. (1994-2001).
- ---------------------------------------------------------------------------------------------------------------

LAURA FERGERSON (42) Treasurer Since Not Applicable None
One Franklin Parkway July 2004
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 34 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).
- ---------------------------------------------------------------------------------------------------------------

MARTIN L. FLANAGAN (44) Vice Since 2000 5 None
One Franklin Parkway President
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Co-President and Chief Executive Officer, Franklin Resources, Inc.; Senior Vice President and Chief Financial
Officer, Franklin Mutual Advisers, LLC; Executive Vice President, Chief Financial Officer and Director,
Templeton Worldwide, Inc.; Executive Vice President and Chief Operating Officer, Templeton Investment Counsel,
LLC; President and Director, Franklin Advisers, Inc.; Executive Vice President, Franklin Investment Advisory
Services, Inc. and Franklin Templeton Investor Services, LLC; Chief Financial Officer, Franklin Advisory
Services, LLC; Chairman, Franklin Templeton 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 49 of the investment companies in
Franklin Templeton Investments.
- ---------------------------------------------------------------------------------------------------------------

JIMMY D. GAMBILL (56) Senior Vice Since 2002 Not Applicable None
500 East Broward Blvd. President and
Suite 2100 Chief
Fort Lauderdale, FL 33394-3091 Executive
Officer -
Finance and
Administration

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President, Franklin Templeton Services, LLC; Senior Vice President, Templeton Worldwide, Inc.; and officer of
51 of the investment companies in Franklin Templeton Investments.
- ---------------------------------------------------------------------------------------------------------------

ANNUAL REPORT 49

DAVID P. GOSS (57) Vice Since 2000 Not Applicable None
One Franklin Parkway President
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Associate General Counsel, Franklin Resources, Inc.; officer and director of one of the subsidiaries of
Franklin Resources, Inc.; officer of 51 of the investment companies in Franklin Templeton Investments; and
FORMERLY, President, Chief Executive Officer and Director, Property Resources Equity Trust (until 1999) and
Franklin Select Realty Trust (until 2000).
- ---------------------------------------------------------------------------------------------------------------

BARBARA J. GREEN (56) Vice Since 2000 Not Applicable None
One Franklin Parkway President
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, Inc., 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 51 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).
- ---------------------------------------------------------------------------------------------------------------

EDWARD B. JAMIESON (56) Vice Since 2000 Not Applicable None
One Franklin Parkway President
San Mateo, CA 94403-1906

MICHAEL O. MAGDOL (67) Vice Since 2002 Not Applicable Director, FTI Banque, Arch
600 Fifth Avenue President Chemicals, Inc. and Lingnan
Rockefeller Center - AML Foundation.
New York, NY 10020-2302 Compliance

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice Chairman, Chief Banking Officer and Director, Fiduciary Trust Company International; and officer and/or
director, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 48 of the
investment companies in Franklin Templeton Investments.
- ---------------------------------------------------------------------------------------------------------------

CHRISTOPHER J. MOLUMPHY (42) Vice Since 2000 Not Applicable None
One Franklin Parkway President
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Executive Vice President, Franklin Advisers, Inc.; and officer of six of the investment companies in Franklin
Templeton Investments.
- ---------------------------------------------------------------------------------------------------------------

50 ANNUAL REPORT

MURRAY L. SIMPSON (67) Vice Since 2000 Not Applicable None
One Franklin Parkway President
San Mateo, CA 94403-1906 and Secretary

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Executive Vice President and General Counsel, Franklin Resources, Inc.; officer and/or director, as the case
may be, of some of the subsidiaries of Franklin Resources, Inc. and of 51 of the investment companies in
Franklin Templeton Investments; and FORMERLY, Chief Executive Officer and Managing Director, Templeton
Franklin Investment Services (Asia) Limited (until 2000); and Director, Templeton Asset Management Ltd. (until
1999).
- ---------------------------------------------------------------------------------------------------------------

GALEN G. VETTER (52) Chief Since May Not Applicable None
500 East Broward Blvd. Financial 2004
Suite 2100 Officer
Fort Lauderdale, FL 33394-3091

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 51 of the investment companies in Franklin Templeton Investments; Senior Vice President, Franklin
Templeton Services, LLC; and FORMERLY, Managing Director, RSM McGladrey, Inc.; and Partner, McGladrey &
Pullen, LLP.
- ---------------------------------------------------------------------------------------------------------------

*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 adviser or affiliated investment
advisers.

**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.
(Resources), which is the parent company of the Trust's adviser and distributor.
Harmon E. Burns is considered to be an interested person of the Trust under the
federal securities laws due to his position as officer and director of
Resources.

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

THE SARBANES-OXLEY ACT OF 2002 AND RULES ADOPTED BY THE SECURITIES AND EXCHANGE
COMMISSION REQUIRE THE TRUST TO DISCLOSE WHETHER THE TRUST'S AUDIT COMMITTEE
INCLUDES AT LEAST ONE MEMBER WHO IS AN AUDIT COMMITTEE FINANCIAL EXPERT WITHIN
THE MEANING OF SUCH ACT AND RULES. THE TRUST'S BOARD OF TRUSTEES HAVE 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 TRUST'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 PRINCIPALS 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 TRUST'S, 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 A COPY OF THE
SAI.

ANNUAL REPORT 51

FRANKLIN GLOBAL TRUST

SHAREHOLDER INFORMATION

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. Copies of the Fund's proxy voting records are also made available online
at franklintempleton.com and posted on the Securities and Exchange Commission's
website at sec.gov and reflect the 12-month period beginning July 1, 2003, and
ending June 30, 2004.

QUARTERLY STATEMENT OF INVESTMENTS
The Fund files a complete statement of investments with the 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.

52 ANNUAL REPORT

[LOGO OMITTED]

FGT FUNDS
------

Fiduciary Large Capitalization Growth and Income Fund
Cusip 353533870

Fiduciary Small Capitalization Equity Fund
Cusip 353533862

Fiduciary European Smaller Companies Fund
Cusip 353533854

This report is intended for the Funds' shareholders. It may not be distributed
to prospective investors in the Funds unless it is preceded or accompanied by a
current prospectus. To receive a free copy of the prospectus, talk to your
financial advisor or call us at 1-800/DIAL BEN(R).

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.

INVESTMENT MANAGER
Fiduciary International, Inc.
600 5th Avenue
New York, NY 10020-2302

DISTRIBUTOR
Franklin/Templeton Distributors, Inc.
One Franklin Parkway
San Mateo, CA 94403-1906

FGT1 A2004 09/04

ANNUAL REPORT 07 31 2004
- --------------------------------------------------------------------------------

THE EXPERTISE OF MANY. THE STRENGTH OF ONE.
- --------------------------------------------------------------------------------

FRANKLIN GLOBAL TRUST

- --------------------------------------------------------------------------------

Fiduciary Core Fixed Income Fund

Fiduciary Core Plus Fixed Income Fund

Franklin International Smaller Companies Growth Fund

[LOGO OMITTED]
FRANKLIN[R] TEMPLETON[R]
INSTITUTIONAL

FRANKLIN o TEMPLETON o FIDUCIARY

Contents

ANNUAL REPORT
- --------------------------------------------------------------------------------

Fiduciary Core Fixed Income Fund ................................ 2

Fiduciary Core Plus Fixed Income Fund .......................... 10

Franklin International Smaller Companies Growth Fund ............ 18

Financial Highlights and Statements of Investments .............. 26

Financial Statements ............................................ 39

Notes to Financial Statements ................................... 42

Report of Independent Registered Public Accounting Firm ......... 52

Tax Designation ................................................. 53

Board Members and Officers ...................................... 54

Proxy Voting Policies and Procedures ............................ 59

- --------------------------------------------------------------------------------
STATEMENT ON CURRENT
INDUSTRY ISSUES
- --------------------------------------------------------------------------------
In our effort to fulfill our ongoing commitment to provide you with timely and
accurate information, we have prepared a statement on current industry issues
as they pertain to Franklin Resources, Inc. and our subsidiary companies
(Franklin Templeton Investments). You can find the most updated "Statement on
Current Industry Issues" and a detailed Q&A at
franklintempletoninstitutional.com, or call us at 1-800/321-8563.

-----------------------------------------------------
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
-----------------------------------------------------

Annual Report | 1

Annual Report

Fiduciary Core Fixed Income Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: The Fund seeks total return by investing
primarily in debt securities of varying maturities.

PORTFOLIO CHARACTERISTICS ON 7/31/04
As a Percentage of Total Net Assets
- -------------------------------------
Effective Duration 4.14
- -------------------------------------
Yield to Maturity 4.52
- -------------------------------------
Average Maturity 9.56
- -------------------------------------
Average Quality AA+
- -------------------------------------

We are pleased to bring you the Fiduciary Core Fixed Income Fund (the "Fund")
annual report covering the period from August 29, 2003 (the Fund's start of
performance) to July 31, 2004.

PERFORMANCE OVERVIEW

The Fund posted a 3.96% cumulative total return for the period ended July 31,
2004. The Fund underperformed its benchmark, the Lehman Brothers U.S. Aggregate
Index (Lehman Aggregate)1, which returned 4.20% during the same period.

ECONOMIC AND MARKET OVERVIEW

During the second half of the calendar year, many economic indicators were
positive. In the United States, third quarter 2003 gross domestic product grew
at an annualized rate of 7.4%, its strongest pace in nearly 20 years. In the
fourth quarter of 2003, it slowed to a more sustainable but still robust 4.2%.
The U.S. trade deficit increased significantly, contributing to the U.S.
dollar's fall to multi-year lows against the euro and other major currencies.
However, the weak dollar provided a boost to the U.S. economy and corporate
profits as exports became cheaper to foreign buyers. Robust consumer spending,
particularly for equipment and software, contributed to accelerated economic
activity. In addition, U.S. federal spending stayed firm and inflation was
benign.

- --------------------------------------------------------------------------------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE
FUTURE RESULTS. INVESTMENT RETURNS AND PRINCIPAL VALUE WILL FLUCTUATE. CURRENT
PERFORMANCE MAY DIFFER FROM FIGURES SHOWN. PLEASE CALL A FRANKLIN TEMPLETON
INSTITUTIONAL SERVICES REPRESENTATIVE AT 1-800/321-8563 FOR MOST RECENT
MONTH-END PERFORMANCE.
- --------------------------------------------------------------------------------

1. Source: Standard & Poor's Micropal. Lehman Brothers U.S. Aggregate Index
represents securities that are SEC registered, taxable and dollar-denominated.
The index covers the U.S. investment-grade fixed-rate bond market, with index
components for government and corporate securities, mortgage pass-through
securities and asset-backed securities. All issues included must have at least
one year to final maturity and must be investment-grade (Baa3 or better) by
Moody's Investor Services. They must also be dollar-denominated and
non-convertible. Total return includes price appreciation/depreciation and
income as a percentage of the original investment. The index is rebalanced
monthly by market capitalization.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL VALUE, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 27.

2 | Annual Report

States, it remained strong in Asia, and was weak, yet positive, in Europe.
Despite these signs of economic recovery, benign inflationary trends continued,
supported by cyclical productivity gains and excess capacity in labor and
capital.

By the spring of 2004, employment growth finally materialized as evidenced by
strong non-farm payroll reports and significant revisions to previous months,
prompting the Fed to prepare the markets for a more imminent rise in short-term
interest rates. Some initial signs of rising inflation also fueled anxiety that
central banks would need to move aggressively to combat it. Inflation concerns
were driven by higher oil prices as well as some slowdown in the rate of
productivity growth.

As expected, the Federal Open Market Committee raised its target interest rate
by 25 basis points at its meeting in June. However, signs of the economy cooling
appeared as June data showed that employment, retail sales, industrial
production, and housing construction all softened from earlier robust levels.
Initial estimates by the Commerce Department showed that U.S. gross domestic
product grew at 3% for the second quarter, a sharp slowdown from the 4.5% rate
of growth for the first quarter. However, Federal Reserve Chairman Alan
Greenspan said that he believed the June slowdown was merely a temporary soft
patch for the economy that will prove to be short-lived. Consequently, at period
end market expectations remained for the Fed to continue its plans for measured
increases in its short-term target interest rate for the balance of 2004.
Although experiencing a fair degree of volatility during the period, for the
twelve-month period ending July 31, 2004, the yield on the benchmark 10-year
Treasury closed at 4.5%, up only 1 basis point from where it was one year prior,
as intermediate-term interest rates had already experienced a meaningful upward
adjustment during early summer of 2003. However, the yield curve did flatten
dramatically, as rates increased by 94 basis points at the two-year maturity.

Overall, the environment of positive economic growth and relatively low interest
rates over the past year benefited corporate issuers, resulting in positive
revenue growth and a significant expansion in operating earnings for many
corporations.

INVESTMENT STRATEGY

The Fund normally invests at least 80% of its net assets in investment-grade
U.S. dollar denominated debt securities of U.S. issuers, with a focus on U.S.
government securities, mortgage and asset-backed securities, and corporate debt
securities. The Fund's manager allocates its investments among the various types
of debt securities available in its core investments, based on its assessment of
the U.S. market, industry and issuer conditions, and the opportunities presented
within the various sectors.

PORTFOLIO BREAKDOWN
Based on Total Net Assets
On 7/31/04

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Mortgage-Backed Securities 34.8%
Diversified Financial Services 20.9%
U.S. Government and Agency Securities 11.0%
Thrifts & Mortgage Finance 6.8%
Diversified Telecommunication Services 5.4%
Media 5.4%
Capital Markets 3.7%
Electric Utilities 3.2%
Consumer Finance 2.5%
Insurance 2.1%
Municipal Bonds 2.0%
Other 7.0%
Short-Term Investments & Other Net Assets -4.8%

Annual Report | 3

TOP 10 HOLDINGS ON 7/31/04

- ---------------------------------------------
% OF TOTAL
NET ASSETS
- ---------------------------------------------
FNMA 33.2%
MORTGAGE-BACKED SECURITIES
- ---------------------------------------------
SLM Student Loan Trust 13.4%
DIVERSIFIED FINANCIAL SERVICES
- ---------------------------------------------
U.S. Treasury Note 8.7%
U.S. GOVERNMENT AND AGENCY SECURITIES
- ---------------------------------------------
Washington Mutual Inc. 5.2%
THRIFTS & MORTGAGE FINANCE
- ---------------------------------------------
Core Investment Grade Bond Trust I 3.1%
DIVERSIFIED FINANCIAL SERVICES
- ---------------------------------------------
U.S. Treasury Bond 2.3%
U.S. GOVERNMENT AND AGENCY SECURITIES
- ---------------------------------------------
General Electric Capital Corp. 2.1%
CAPITAL MARKETS
- ---------------------------------------------
Centaur Funding Corp. 1.9%
COMMUNICATIONS EQUIPMENT
- ---------------------------------------------
Bear Stearns Adjustable Rate
Mortgage Trust 1.6%
CAPITAL MARKETS
- ---------------------------------------------
GNMA 1.6%
MORTGAGE-BACKED SECURITIES
- ---------------------------------------------

MANAGER'S DISCUSSION

During the six months ended January 31, 2004, all major sectors had positive
excess returns. The Fund's performance during this period benefited from
favorable sector selection, most notably to investment-grade corporate bonds.
The credit sector generated an excess return of 1.9% over comparable Treasuries,
as spreads tightened significantly from September 2003 through January 20042.
Within the credit sector, the trend of lower quality bonds performing better
continued as BBB rated bonds earned an excess return of 3.1% versus Treasuries.

Over the six months ending July 31, 2004, there was little distinction between
the performance of the investment-grade sectors. The U.S. credit sector barely
outperformed curve-adjusted Treasuries earning an excess return of 3 basis
points2. Thus, an overweight position in corporate bonds was a slight
contributor to performance. Early in the period, investment-grade corporates
benefited from an improving economy; however, this was tempered by investor
concerns over the threat of terrorism, event risk, and higher interest rates
later in the period. An underweight position in mortgage-backed securities
detracted modestly from performance relative to the benchmark as the sector
generated an excess return of 31 basis points versus comparable Treasuries
during the period2. Mortgages benefited from the carry trade regaining favor
among banks.

An underweight position in duration, which was initiated towards the end of
2003, detracted marginally from returns in the first six months of the period,
but was modestly positive for returns as interest rates rose during the
following six months. Additionally, a focus on intermediate-to-long maturities
contributed positively to performance as the yield curve flattened.

2. Source: Lehman Live.

4 | Annual Report

CONCLUSION

We thank you for your continued participation and look forward to serving your
investment needs.

Sincerely,

[PHOTO OMITTED]

/S/Michael Materasso
Michael Materasso
Executive Vice President
Portfolio Manager
Fiduciary Trust Company International

[PHOTO OMITTED]

/S/Michael Rohwetter
Michael Rohwetter
Senior Vice President
Portfolio Manager
Fiduciary Trust Company International

[PHOTO OMITTED]

/S/Warren Keyser
Warren Keyser
Senior Vice President
Fiduciary Trust Company International

THIS DISCUSSION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS AS OF
JULY 31, 2004, 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 ADVISOR 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.

Annual Report | 5

Performance Summary as of 7/31/04

FIDUCIARY CORE FIXED INCOME FUND

Your dividend income will vary depending on the dividends or interest paid by
the securities in the Fund's portfolio. Capital gain distributions are net
profits realized from the sale of portfolio securities. The performance table
and graph do not reflect any taxes due on Fund dividends, capital gain
distributions, if any, or any realized gains on the sale of Fund shares. Total
return reflects the Fund's dividend income, capital gains distributions, if any,
and any unrealized gains or losses on the sale of Fund shares. The unmanaged
index includes reinvested dividends. It differs from the Fund in composition and
does not pay management fees or expenses. One cannot invest directly in an
index.

- --------------------------------------------------------------------------------
CUMULATIVE TOTAL
SIX-MONTH RETURN SINCE
CUMULATIVE TOTAL INCEPTION 1,2
RETURN 1,2 (8/29/03)
- --------------------------------------------------------------------------------
FIDUCIARY CORE FIXED INCOME FUND 0.29% 3.96%
- --------------------------------------------------------------------------------
LEHMAN BROTHERS U.S. AGGREGATE INDEX 3 0.34% 4.20%
- --------------------------------------------------------------------------------

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE
FUTURE RESULTS. INVESTMENT RETURNS AND PRINCIPAL VALUE WILL FLUCTUATE. CURRENT
PERFORMANCE MAY DIFFER FROM FIGURES SHOWN. PLEASE CALL A FRANKLIN TEMPLETON
INSTITUTIONAL SERVICES REPRESENTATIVE AT 1-800/321-8563 FOR MOST RECENT
MONTH-END PERFORMANCE.

Bonds and other debt obligations are affected by changes in interest rates and
the creditworthiness of their issuers. Although Fannie Mae and Freddie Mac may
be chartered by Acts of Congress, their securities are neither issued nor
guaranteed by the U.S. Treasury. Special risks are associated with foreign
investing, including currency fluctuations, economic instability, regulatory and
political developments. Please see the Fund's prospectus for more information.

6 | Annual Report

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT2

The graph below illustrates the hypothetical investment of $10,000 in Fiduciary
Core Fixed Income Fund (the "Fund") from August 29, 2003 (start of performance)
to July 31, 2004, compared with the Lehman Brothers U.S. Aggregate Index. 3

(08/29/03-7/31/04)

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Fiduciary Core Fixed Lehman Brothers U.S.
Income Fund Aggregate Index
8/29/03 $10,000 $10,000
8/31/03 $10,000 $10,004
9/30/03 $10,260 $10,269
10/31/03 $10,200 $10,173
11/30/03 $10,250 $10,197
12/31/03 $10,346 $10,301
1/31/04 $10,427 $10,384
2/29/04 $10,517 $10,496
3/31/04 $10,609 $10,575
4/30/04 $10,305 $10,300
5/31/04 $10,254 $10,259
6/30/04 $10,315 $10,317
7/31/04 $10,396 $10,419

ENDNOTES

1. Cumulative total return represents the change in value of an investment over
the periods indicated. Since the Fund has existed for less than one year,
average annual returns are not provided.
2. For periods prior to July 31, 2004, the manager and administrator agreed in
advance to waive or reduce their respective fees and to assume as their own
expenses certain expenses otherwise payable by the Fund so that total Fund
annual operating expenses did not exceed 0.45%. Without this waiver or
reduction, total return would have been lower. After July 31, 2004, the manager
and administrator may end this arrangement at any time upon notice to the Fund's
Board of Trustees.
3. Source: Standard & Poor's Micropal. See page 2 for a description of the
Lehman Brothers U.S. Aggregate Index.

Annual Report | 7

Your Fund's Expenses

FIDUCIARY CORE FIXED INCOME FUND

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.

ACTUAL FUND EXPENSES

The first line (Actual) for each share class listed in the table below 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 A TOTAL ASSET VALUE OF $8,600, 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 expenses paid for this period were $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.

8 | Annual Report

Your Fund's Expenses (CONTINUED)

- ------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 1/31/04 VALUE 7/31/04 PERIOD* 1/31/04-7/31/04
- ------------------------------------------------------------------------------------------------------

Actual $1,000.00 $ 997.10 $2.23
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,022.63 $2.26
- ------------------------------------------------------------------------------------------------------

*Expenses are equal to the Fund's annualized expense ratio of 0.45% multiplied
by the average account value over the period, multiplied by 182/366 to reflect
the one-half year period.

Annual Report | 9

Fiduciary Core Plus Fixed Income Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: The Fund seeks total return by investing
primarily in debt securities of varying maturities.

PORTFOLIO CHARACTERISTICS ON 7/31/04
As a Percentage of Total Net Assets
- ------------------------------------
Effective Duration 3.85
- ------------------------------------
Yield to Maturity 4.37
- ------------------------------------
Average Maturity 7.17
- ------------------------------------

We are pleased to bring you the Fiduciary Core Plus Fixed Income Fund (the
"Fund") annual report covering the period from August 4, 2003 (the Fund's start
of performance) to July 31, 2004.

PERFORMANCE OVERVIEW

The Fund posted a 6.97% total return for the period ended July 31, 2004. The
Fund outperformed its benchmark, the Lehman Brothers U.S. Aggregate Index
(Lehman Aggregate)1, which returned 4.75% during the same period.

ECONOMIC AND MARKET OVERVIEW

Many foreign economies showed signs of economic recovery and benign inflation
following a low growth and disinflationary environment that facilitated monetary
easing in many major economies. While economic growth accelerated in the United
States, it remained strong in Asia, and was weak, yet positive, in Europe.
Despite these signs of economic recovery, benign inflationary trends continued,
supported by cyclical productivity gains and excess capacity in labor and
capital.

1. Source: Standard & Poor's Micropal. Lehman Brothers U.S. Aggregate Index
represents securities that are SEC registered, taxable and dollar-denominated.
The index covers the U.S. investment-grade fixed-rate bond market, with index
components for government and corporate securities, mortgage pass-through
securities and asset-backed securities. All issues included must have at least
one year to final maturity and must be investment grade (Baa3 or better) by
Moody's Investor Services. They must also be dollar-denominated and
non-convertible. Total return includes price appreciation/depreciation and
income as a percentage of the original investment. The index is rebalanced
monthly by market capitalization.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL VALUE, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 31.

10 | Annual Report

INVESTMENT STRATEGY

The Fund will normally invest about 70% of its net assets in core sectors of
investment grade U.S. dollar-denominated debt securities of U.S. issuers, with a
focus on U.S. government securities, mortgage and asset-backed securities, and
corporate debt securities. The Fund's manager allocates its investments among
the various types of debt securities available in its core investments, based on
its assessment of the U.S. market, industry and issuer conditions, and the
opportunities presented within the various sectors. The manager also evaluates
opportunities in the non-core investments and the relative value decision of
investing away from the benchmark sectors.

PORTFOLIO BREAKDOWN
Based on Total Net Assets
On 7/31/04

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Mortgage-Backed Securities 15.5%
Diversified Financial Services 10.3%
U.S. Government and Agency Securities 7.2%
Media 5.9%
Insurance 4.4%
Diversified Telecommunication Services 4.4%
Electric Utilities 3.7%
Municipal Bonds 1.8%
Consumer Finance 1.8%
Communications Equipment 1.6%
Gas Utilities 1.5%
Other 10.2%
Short-Term Investments & Other Net Assets 26.6%

Annual Report | 11

MANAGER'S DISCUSSION

During the six months ended January 31, 2004, all major sectors had positive
excess returns2. The Fund's performance during this period benefited from
favorable sector selection, most notably to investment-grade corporate bonds.
The credit sector generated an excess return of 1.9% over comparable Treasuries,
as spreads tightened significantly from September through January 20042. Within
the credit sector, the trend of lower quality bonds performing better continued
as BBB rated bonds earned an excess return of 3.1% versus Treasuries.

Overall, the "plus" sectors performed well throughout the year. During the first
half of the period ending January 31, 2004, the Fund benefited from an
allocation to below investment-grade corporates, which generated an impressive
excess return of 8.2%, according to the Lehman Brothers High Yield Index, amid a
strengthening economy. An allocation to foreign currencies also contributed to
the Fund's performance during the six months ended January 31, 2004. During this
period, the dollar declined in a substantial, but orderly fashion, as the euro
strengthened from $1.12 per euro on August 1, 2003 to $1.25 per euro six months
later.

TOP 10 HOLDINGS ON 7/31/04

- ------------------------------------------------
% OF TOTAL
NET ASSETS
- ------------------------------------------------
FNMA 14.1%
MORTGAGE-BACKED SECURITIES
- ------------------------------------------------
U.S. Treasury Note 5.2%
U.S. GOVERNMENT AND AGENCY SECURITIES
- ------------------------------------------------
SLM Student Trust 5.2%
DIVERSIFIED FINANCIAL SERVICES
- ------------------------------------------------
Bunderepublik Deutschland 2.6%
FOREIGN GOVERNMENT AND AGENCY SECURITIES
- ------------------------------------------------
Met Life Global Funding 2.2%
INSURANCE
- ------------------------------------------------
U.S. Treasury Bond 2.0%
U.S. GOVERNMENT AND AGENCY SECURITIES
- ------------------------------------------------
Government of Mexico 1.9%
FOREIGN GOVERNMENT AND AGENCY SECURITIES
- ------------------------------------------------
Core Investment Grade Bond Trust I 1.8%
DIVERSIFIED FINANCIAL SERVICES
- ------------------------------------------------
Centaur Funding Corp. 1.6%
COMMUNICATIONS EQUIPMENT
- ------------------------------------------------
France Telecom SA 1.5%
DIVERSIFIED TELECOMMUNICATION SERVICES
- ------------------------------------------------

2. Source: Lehman Live.

12 | Annual Report

CONCLUSION

We thank you for your continued participation and look forward to serving your
investment needs.

Sincerely,

[PHOTO OMITTED]

/S/Michael Materasso
Michael Materasso
Executive Vice President
Portfolio Manager
Fiduciary Trust Company International

[PHOTO OMITTED]

/S/Michael Rohwetter
Michael Rohwetter
Senior Vice President
Portfolio Manager
Fiduciary Trust Company International

[PHOTO OMITTED]

/S/Warren Keyser
Warren Keyser
Senior Vice President
Fiduciary Trust Company International

Annual Report | 13

Performance Summary as of 7/31/04

FIDUCIARY CORE PLUS FIXED INCOME FUND

- --------------------------------------------------------------------------------
CUMULATIVE TOTAL
SIX-MONTH RETURN SINCE
CUMULATIVE TOTAL INCEPTION 1,2
RETURN 1,2 (8/4/03)
- --------------------------------------------------------------------------------
FIDUCIARY CORE PLUS FIXED INCOME FUND 0.77% 6.97%
- --------------------------------------------------------------------------------
LEHMAN BROTHERS U.S. AGGREGATE INDEX 3 0.34% 4.75%
- --------------------------------------------------------------------------------

Bonds and other debt obligations are affected by changes in interest rates and
the creditworthiness of their issuers. High yields, lower-rated (junk) bonds
generally have greater price swings and higher default risks. Although Fannie
Mae and Freddie Mac may be chartered by Acts of Congress, their securities are
neither issued nor guaranteed by the U.S. Treasury. Special risks are associated
with foreign investing, including currency fluctuations, economic instability,
regulatory and political developments. Please see the Fund's prospectus for more
information.

14 | Annual Report

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT2

The graph below illustrates the hypothetical investment of $10,000 in Fiduciary
Core Plus Fixed Income Fund (the "Fund") from August 4, 2003 (start of
performance) to July 31, 2004, compared with the Lehman Brothers U.S. Aggregate
Index.3

(08/4/03-7/31/04)

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Fiduciary Core Plus Lehman Brothers U.S.
Fixed Income Fund Aggregate Index
8/4/03 $10,000 $10,000
8/31/03 $10,040 $10,057
9/30/03 $10,360 $10,323
10/31/03 $10,300 $10,227
11/30/03 $10,320 $10,251
12/31/03 $10,532 $10,356
1/31/04 $10,614 $10,439
2/29/04 $10,696 $10,552
3/31/04 $10,779 $10,631
4/30/04 $10,602 $10,355
5/31/04 $10,560 $10,313
6/30/04 $10,591 $10,371
7/31/04 $10,697 $10,475

ENDNOTES

1. Cumulative total return represents the change in value of an investment over
the periods indicated. Since the Fund has existed for less than one year,
average annual returns are not provided.
2. For periods prior to July 31, 2004, the manager and administrator agreed in
advance to waive or reduce their respective fees and to assume as their own
expenses certain expenses otherwise payable by the Fund so that total Fund
annual operating expenses did not exceed 0.43%. Without this waiver or
reduction, total return would have been lower. After July 31, 2004, the manager
and administrator may end this arrangement at any time upon notice to the Fund's
Board of Trustees.
3. Source: Standard & Poor's Micropal. See page 10 for a description of the
Lehman Brothers U.S. Aggregate Index.

Annual Report | 15

Your Fund's Expenses

FIDUCIARY CORE PLUS FIXED INCOME FUND

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.

ACTUAL 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 A TOTAL ASSET VALUE OF $8,600, 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 expenses paid for this period were $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

16 | Annual Report

Your Fund's Expenses (CONTINUED)

- -------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 1/31/04 VALUE 7/31/04 PERIOD* 1/31/04-7/31/04
- -------------------------------------------------------------------------------------------------------

Actual $1,000.00 $1,007.70 $2.15
- -------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,022.73 $2.16
- -------------------------------------------------------------------------------------------------------

*Expenses are equal to the Fund's annualized expense ratio of 0.43% multiplied
by the average account value over the period, multiplied by 182/366 to reflect
the one-half year period.

Annual Report | 17

Franklin International Smaller
Companies Growth Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: The Fund seeks long-term capital
appreciation by investing at least 80% of its net assets in a diversified
portfolio of marketable equity and equity-related securities of smaller
international companies. The Fund defines smaller international companies as
those with market capitalizations of between $100 million and $2 billion or the
equivalent in local currencies at the time of purchase. The Fund considers
international companies to be those organized under the laws of a country
outside North America or having a principal office in a country outside of North
America, or whose securities are listed or traded principally on a recognized
stock exchange or over-the-counter outside of North America.

We are pleased to bring you the Franklin International Smaller Companies Growth
Fund (the "Fund") annual report covering the 12-month period ending July 31,
2004.

PERFORMANCE OVERVIEW

The Fund posted a 34.25% cumulative total return for the period ended July 31,
2004. The Fund underperformed its benchmark, the Standard & Poor's
(S&P)/Citigroup <$2 Billion EPAC Index1, which returned 37.53%.

ECONOMIC AND MARKET OVERVIEW

Developed equity markets in the European and Asian Pacific regions showed strong
gains over the 12-month period ending July 31, 2004. For the dollar-based
investor the depreciation of the dollar provided a strong tailwind for
performance. At the beginning of this period, investors began to gain greater
confidence in light of an improving economic and market outlook, but took a more
defensive stance in recent months. The importance of diversification across both
Europe and Asia was apparent, with European and Asian smaller companies showing
strong performance during the year.

1. Source: Standard & Poor's Micropal. S&P/Citigroup Cap-Range <$2 Billion
Europe, Pacific, and Asian Countries (EPAC) Index is a float-adjusted, market
capitalization-weighted index designed to measure the performance of European
and Asian equity securities with market capitalizations of less than $2 billion.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL VALUE, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 36.

18 | Annual Report

Smaller companies outperformed larger companies globally during the period. In
Europe the HSBC European Smaller Companies Index2 gained 32.3% over the period
compared to a 22.8% gain by the MSCI Europe Index3. In the Asia Pacific region
smaller companies led by an even greater margin, driven by the performance of
Japanese value stocks. Outside of the United States, value-oriented companies
continued to outperform growth-oriented companies, as evident when comparing the
S&P/Citigroup EMI EPAC Growth and Value indexes1, 4. In both Europe and the Asia
Pacific region the energy minerals sector showed the strongest performance,
driven by oil and gas production companies. In Asia, performance was also strong
in other cyclical areas of the market such as non-energy minerals, which were
supported by commodity prices, and the consumer durables sector, which was led
by homebuilding stocks. Technology services and telecommunications were among
the poorest performing sectors in both regions.

INVESTMENT STRATEGY

In choosing individual equity investments, the Fund's sub-advisor utilizes a
fundamental "bottom-up" approach involving in-depth qualitative and quantitative
analysis of individual equity securities. In narrowing down the universe of
eligible investments, the sub-advisor employs a thematic approach to identify
industries that may benefit from longer-term dynamic growth. Within these
industries, the focus of the Fund's investments is on companies with proprietary
products and services, and that the sub-advisor believes have a strong
probability of retaining or widening margins, and a strong balance sheet.

The sub-advisor does not select investments for the Fund that are merely
representative of the small cap asset class, but instead aims to produce a
portfolio of securities of exceptionally dynamic companies operating in sectors
that offer attractive growth potential. The sub-advisor has a team of research
analysts fully dedicated to the identification of smaller companies that have,
in their opinion, the potential to provide above average performance.

MANAGER'S DISCUSSION

In Europe, stock selection in the finance sector added the most value, as our
holdings in DePfa Bank and AWD Holdings showed strong
performance. Performance

ASSET ALLOCATION ON 7/31/04
- ---------------------------------------
% OF TOTAL
NET ASSETS
- ---------------------------------------
Equity 99.1%
- ---------------------------------------
Short-Term Investments &
Other Net Assets 0.9%
- ---------------------------------------

GEOGRAPHIC DISTRIBUTION
ON 7/31/04
EQUITY ASSETS AS A PERCENTAGE
OF TOTAL NET ASSETS

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Europe ..................................... 53.9%
Asia ....................................... 38.0%
Australia & New Zealand .................... 4.5%
Short-Term Investments & Other Net Assets .. 3.6%

2. Source: Standard & Poor's Micropal. HSBC Smaller European Companies consists
of 1,500 smaller companies in Europe, including the United Kingdom.
3. Standard & Poor's Micropal. The MSCI Europe Index is a free float-adjusted
market capitalization index that is designed to measure equity performance for
developed markets in Europe.
4. Source: Standard & Poor's Micropal. S&P/Citigroup Europe, Pacific, and Asian
Countries (EPAC) Extended Market (EMI) Growth Index is a free float-adjusted,
market capitalization-weighted index designed to measure the performance of
European and Asian growth-oriented, small capitalization equity securities.
S&P/Citigroup Europe, Pacific, and Asian Countries (EPAC) Extended Market (EMI)
Value Index is a free float-adjusted, market capitalization-weighted index
designed to measure the performance of European and Asian value-oriented, small
capitalization equity securities. For the one-year period ending July 31, 2004,
S&P/Citigroup EMI EPAC Growth Index returned and S&P/Citigroup EMI EPAC Value
Index returned 31.33% and 36.75%, respectively.

Annual Report | 19

PORTFOLIO BREAKDOWN
Based on Total Net Assets
On 7/31/04

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Specialty Retail 11.0%
Commercial Services & Supplies 8.7%
Health Care Equipment & Supplies 6.3%
Communications Equipment 6.2%
Electronic Equipment & Instruments 6.2%
Household Durables 4.8%
Health Care Providers & Services 4.6%
Capital Markets 3.2%
Electrical Equipment 3.1%
Software 3.0%
Machinery 3.0%
Internet Software & Services 2.7%
Diversified Telecommunication Services 2.6%
Other 31.0%
Short-Term Investments & Other Net Assets 3.6%

was also helped by holdings in the retail trade sector, where companies such as
Charles Vogele, a Swiss family clothing retailer, added value over the period
despite a recent profit warning that prompted its sale. A position in
Mothercare, a U.K. maternity clothing retailer, also showed strong performance.

In the Asia Pacific region, stock selection was strong overall and had a
positive impact on relative performance. Performance in the telecommunications
sector was helped by positions in Japanese mobile phone content providers,
driven by the move from 2G to 3G technology. This included holdings in G-Mode, a
game content distributor and Index Corp., a Japanese provider of diverse mobile
phone content, as both companies showed strong performance. In addition,
e-Access, a Japanese provider of broadband internet access, also added value in
this sector.

Performance was also helped by stock selection in the technology services sector
with strong performance from the Fund's position in Access, a Japanese designer
of custom web-browsers for mobile phones and internet devices. This company's
revenue growth is also strongly tied to growth in 3G mobile phones.

Performance in Europe was hindered by positions in the commercial services
sector. This was due to positions in Amadeus Global Travel, a Spanish company
that provides marketing and distribution services to the travel industry, and
Transcom, a Swedish provider of customer relationship management solutions.

In Asia, performance was held back by an overweight position as well as stock
selection in the electronic technology sector. This was due to weak performance
from our position in Sekonix, a South Korean supplier of optical fibers used in
projection TVs and other applications. Performance was also hurt by our position
in Koha, a Japanese electronic components manufacturer.

We continue to see indications that a U.S.-led global recovery remains in place.
In Asia, demand from China was a strong driver of regional growth, but Japan is
also beginning to experience the early stages of a consumer-led recovery. Higher
oil prices, rising interest rates, and geopolitical considerations are clearly
adding an element of uncertainty. Successful business models and margin
developments remain key.

20 | Annual Report

CONCLUSION

We thank you for your continued participation and look forward to serving your
investment needs.

Sincerely,

[PHOTO OMITTED]

/S/Margaret S. Lindsay
Margaret S. Lindsay
Executive Vice President
Fiduciary Trust Company International

[PHOTO OMITTED]

/S/Pratik Patel
Pratik Patel
Vice President
Fiduciary Trust Company International

TOP 10 HOLDINGS ON 7/31/04

- --------------------------------------
% OF TOTAL
NET ASSETS
- --------------------------------------
Tamura Taiko Holdings Inc. 2.0%
COMMUNICATIONS EQUIPMENT
- --------------------------------------
Neomax Co. Ltd. 1.9%
ELECTRONIC EQUIPMENT & INSTRUMENTS
- --------------------------------------
Park24 Co. Ltd. 1.8%
COMMERCIAL SERVICES & SUPPLIES
- --------------------------------------
Whatman PLC 1.7%
CHEMICALS
- --------------------------------------
Commuture Corp. 1.7%
CONSTRUCTION & ENGINEERING
- --------------------------------------
Getinge AB, B 1.7%
HEALTH CARE EQUIPMENT & SUPPLIES
- --------------------------------------
Taylor Nelson Sofres PLC 1.7%
MEDIA
- --------------------------------------
Bang & Olufsen AS, B 1.7%
HOUSEHOLD DURABLES
- --------------------------------------
AWD Holdings AG 1.7%
CAPITAL MARKETS
- --------------------------------------
Tandberg Television ASA 1.7%
COMMUNICATIONS EQUIPMENT
- --------------------------------------

Annual Report | 21

Performance Summary as of 7/31/04

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

Your dividend income will vary depending on the dividends or interest paid by
the securities in the Fund's portfolio. Capital gain distributions are net
profits realized from the sale of portfolio securities. The performance table
and graph do not reflect any taxes due on Fund dividends, capital gain
distributions, if any, or any realized gains on the sale of Fund shares. Total
return reflects the Fund's dividend income, capital gains distributions, if any,
and any unrealized gains or losses on the sale of Fund shares. The unmanaged
indices include reinvested dividends. They differ from the Fund in composition
and do not pay management fees or expenses. One cannot invest directly in an
index.

- -----------------------------------------------------------------------------------------------------------
AVERAGE
ANNUAL CUMULATIVE
SINCE SINCE
SIX-MONTH ONE-YEAR INCEPTION 1,2 INCEPTION 1,3
CUMULATIVE 1,3 CUMULATIVE 1,3 (10/15/02) (10/15/02)
- -----------------------------------------------------------------------------------------------------------

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND -2.73% 34.25% 31.02% 62.34%
- -----------------------------------------------------------------------------------------------------------
S&P/CITIGROUP CAP-RANGE <$2 BILLION EPAC INDEX 2,4 3.63% 37.53% 36.49% 74.68%
- -----------------------------------------------------------------------------------------------------------

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE
FUTURE RESULTS. ONGOING MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM
PERFORMANCE; MORE RECENT RETURNS MAY DIFFER FROM THOSE SHOWN. SINCE MARKETS CAN
GO DOWN AS WELL AS UP, INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE WITH
MARKET, AND YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. PLEASE CALL A
FRANKLIN TEMPLETON INSTITUTIONAL SERVICES REPRESENTATIVE AT 1-800/321-8563 FOR
MOST RECENT MONTH-END PERFORMANCE.

Investment return and principal value will fluctuate with market conditions,
currency volatility, and the economic, social, and political climates of the
countries where the Fund invests. Emerging markets involves heightened risks
related to the same factors in addition to those associated with their
relatively small size and lesser liquidity. Small or relatively new unseasoned
companies can be particularly sensitive to changing economic conditions, and
their prospects for growth are less certain than those of the larger, more
established companies. Please see the Fund's prospectus for information.

22 | Annual Report

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT1

The graph below illustrates the hypothetical investment of $10,000 in Franklin
International Smaller Companies Growth Fund (the "Fund") from October 15, 2002
(start of performance) to July 31, 2004, compared with the S&P/Citigroup
Cap-Range <$2 Billion EPAC Index.1

(10/15/02-7/31/04)

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Franklin International Smaller S&P/Citigroup Cap-Range
Companies Growth Fund < $2 Billion EPAC Index
10/15/02 $10,000 $10,000
10/31/02 $9,970 $9,956
11/30/02 $10,180 $10,312
12/31/02 $10,206 $10,235
1/31/03 $10,025 $10,085
2/28/03 $9,845 $10,065
3/31/03 $9,714 $10,003
4/30/03 $10,597 $10,832
5/31/03 $11,459 $11,742
6/30/03 $11,600 $12,300
7/31/03 $12,092 $12,700
8/31/03 $12,664 $13,507
9/30/03 $13,266 $14,276
10/31/03 $14,992 $15,258
11/30/03 $15,011 $15,244
12/31/03 $15,653 $16,178
1/31/04 $16,688 $16,855
2/29/04 $16,947 $17,340
3/31/04 $17,340 $18,249
4/30/04 $17,113 $17,659
5/31/04 $16,637 $17,417
6/30/04 $17,392 $18,225
7/31/04 $16,234 $17,467

ENDNOTES

1. For periods prior to July 31, 2004, the manager and administrator agreed in
advance to waive or reduce their respective fees and to assume as their own
expenses certain expenses otherwise payable by the Fund so that total Fund
annual operating expenses did not exceed 0.95%. Without this waiver or
reduction, total return would have been lower. After July 31, 2004, the manager
and administrator may end this arrangement at any time upon notice to the Fund's
Board of Trustees.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated.
3. Cumulative total return represents the change in value of an investment over
the periods indicated.
4. Source: Standard & Poor's Micropal. See page 18 for a description of the
S&P/Citigroup Cap-Range <$2 Billion EPAC Index.

Annual Report | 23

Your Fund's Expenses

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

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.

ACTUAL 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 A TOTAL ASSET VALUE OF $8,600, 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 expenses paid for this period were $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

24 | Annual Report

Your Fund's Expenses (CONTINUED)

Actual $1,000 $ 972.70 $4.66
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,020.14 $4.77
- ------------------------------------------------------------------------------------------------------

*Expenses are equal to the Fund's annualized expense ratio of 0.95%, multiplied
by the average account value over the period, multiplied by 182/366 to reflect
the one-half year period.

Annual Report | 25

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FIDUCIARY CORE FIXED INCOME FUND

------------
PERIOD ENDED
JULY 31,
2004 D
------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period ............................. $10.00
------------

Income from investment operations:

Net investment income a ......................................... .26

Net realized and unrealized gains (losses) ...................... .13
------------
Total from investment operations ................................. .39
------------
Less distributions from:

Net investment income ........................................... (.39)

Net realized gains .............................................. (.03)
------------
Total distributions .............................................. (.42)
------------
Net asset value, end of period ................................... $ 9.97
------------

Total return b ................................................... 3.96%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ................................ $17,543

Ratios to average net assets:

Expenses ........................................................ .99%e

Expenses net of waiver and payments by affiliate ................ .45%e

Net investment income ........................................... 2.76%e

Portfolio turnover rate .......................................... 459.82%

Portfolio turnover rate excluding mortgage dollar rolls c ........ 259.85%

<FN>
a Based on average daily shares outstanding.
b Total return is not annualized for periods less than one year.
c See Note 1(e) regarding mortgage dollar rolls.
d For the period August 29, 2003 (commencement date) to July 31, 2004.
e Annualized.
</FN>

26 | See notes to financial statements. | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004

- ---------------------------------------------------------------------------------------------------------------------------
FIDUCIARY CORE FIXED INCOME FUND COUNTRY PRINCIPAL AMOUNT C VALUE
- ---------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS 30.1%
AEROSPACE & DEFENSE .6%

BF Goodrich, 6.80%, 2/01/18 .......................................... United States $ 100,000 $ 106,562
------------

CAPITAL MARKETS 2.1%
General Electric Capital Corp., FRN, 1.664%, 9/18/06 ................. United States 370,000 371,058
------------

COMMERCIAL SERVICES & SUPPLIES .5%
Tyco International Group SA, 6.75%, 2/15/11 .......................... Luxembourg 80,000 87,374
------------

CONSUMER FINANCE 2.5%
Ford Motor Credit Co., 7.375%, 10/28/09 .............................. United States 165,000 177,220
GMAC, 7.25%, 3/02/11 ................................................. United States 250,000 263,290
------------
440,510
------------

DIVERSIFIED FINANCIAL SERVICES 5.1%
Core Investment Grade Bond Trust I, 4.727%, 11/30/07 ................. United States 530,000 544,266
Glencore Funding LLC, 144A, 6.00%, 4/15/14 ........................... United States 130,000 122,380
HSBC Capital Funding LP, 9.547%, Perpetual ........................... Jersey Islands 140,000 171,338
Morgan Stanley Dean Witter & Co., 6.60%, 4/01/12 ..................... United States 55,000 59,824
------------
897,808
------------

DIVERSIFIED TELECOMMUNICATION SERVICES 5.4%
Deutsche Telekom, International Finance NV, senior sub. note, 3.875%,
7/22/08 ............................................................ Netherlands 100,000 99,040
France Telecom SA, senior note, FRN, 9.50%, 3/01/31 .................. France 205,000 261,764
Hutchison Whampoa International Ltd., senior note, 144A, 5.45%,
11/24/10 ........................................................... Hong Kong 100,000 99,512
Sprint Capital Corp., 6.90%, 5/01/19 ................................. United States 250,000 259,841
Verizon Global Funding Corp., 4.00%, 1/15/08 ......................... United States 225,000 226,394
------------
946,551
------------

ELECTRIC UTILITIES 3.2%
Centerpoint Energy Inc., senior note, B, 7.25%, 9/01/10 .............. United States 100,000 109,787
Cilcorp Inc., senior note, 8.70%, 10/15/09 ........................... United States 100,000 117,544
Consumers Energy Co., C, 4.25%, 4/15/08 .............................. United States 270,000 269,839
System Energy Resources Inc., 144A, 5.129%, 1/15/14 .................. United States 60,000 59,127
------------
556,297
------------

GAS UTILITIES 1.5%
Pacific Gas & Electric Co., 6.05%, 3/01/34 ........................... United States 270,000 260,981
------------

INSURANCE 2.1%
Allstate Corp., 7.20%, 12/01/09 ...................................... United States 100,000 114,887
Arch Capital Group Ltd., senior note, 7.35%, 5/01/34 ................. Bermuda 140,000 142,365
XL Capital PLC, 6.50%, 1/15/12 ....................................... United Kingdom 110,000 118,890
------------
376,142
------------

Annual Report | 27

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

AOL Time Warner Inc., 7.70%, 5/01/32 ................................. United States $ 155,000 $ 172,700
Chancellor Media Corp., senior note, 8.00%, 11/01/08 ................. United States 130,000 146,742
Comcast Cable Communications, 6.875%, 6/15/09 ........................ United States 150,000 164,737
News America Holdings Inc., 9.50%, 7/15/24 ........................... United States 135,000 180,702
TCI Communications Inc., 8.75%, 8/01/15 .............................. United States 145,000 176,821
Univision Communications Inc., senior note, 3.875%, 10/15/08 ......... United States 110,000 108,362
------------
950,064
------------

PHARMACEUTICALS .7%
Medco Health Solutions Inc., senior note, 7.25%, 8/15/13 ............. United States 115,000 124,200
------------

THRIFTS & MORTGAGE FINANCE 1.0%
Countrywide Financial Corp., 4.00%, 3/22/11 .......................... United States 180,000 169,984
------------

TOTAL CORPORATE BONDS (COST $5,304,300) .............................. 5,287,531
------------

MORTGAGE-BACKED SECURITIES 34.8%
a FNMA 15 Year, 5.50%, 8/01/18 ......................................... United States 1,105,000 1,135,043
a FNMA 30 Year, 5.00%, 8/01/33 ......................................... United States 420,000 409,500
a FNMA 30 Year, 5.50%, 8/01/33 ......................................... United States 1,750,000 1,754,921
FNMA 30 Year, 5.50%, 12/01/33 ........................................ United States 162,176 163,023
FNMA 30 Year, Cap 7.50%, Margin .45% + 1 Month LIBOR,
Resets Monthly, 1.70%, 1/25/32 ..................................... United States 1,015,000 1,013,161
a FNMA 35 Year, 6.50%, 8/15/34 ......................................... United States 1,295,000 1,351,656
GNMA 30 Year, 6.00%, 4/20/34 ......................................... United States 267,329 273,654
------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $6,099,441) ................... 6,100,958
------------

ASSET-BACKED SECURITIES 24.8%
CAPITAL MARKETS 1.6%
Bear Stearns Adjustable Rate Mortgage Trust, 2004-4, A1B, 3.517%,
6/25/34 ............................................................ United States 276,633 277,399
------------

COMMERCIAL SERVICES & SUPPLIES .6%
Fideicomiso Petacalco Trust, Reg S, 10.16%, 12/23/09 ................. Mexico 88,000 100,965
------------

DIVERSIFIED FINANCIAL SERVICES 15.8%
CS First Boston Mortgage Securities Corp., 2004-1, 5A1, 5.50%, 2/25/19 United States 253,897 253,894
Sequoia Mortgage Trust, 2004-2, A, 1.45%, 3/20/34 .................... United States 174,320 173,919
SLM Student Loan Trust, 2002-3, A4, 1.80%, 10/25/16 .................. United States 350,000 351,113
SLM Student Loan Trust, 2003-6, A2, 1.55%, 3/15/11 ................... United States 1,073,719 1,074,369
SLM Student Loan Trust, 2004-6, A2, 1.697%, 1/25/13 .................. United States 920,000 920,287
------------
2,773,582
------------

OIL & GAS 1.0%
Gazprom International SA, 144A, 7.201%, 2/01/20 ...................... Russia 170,000 167,875
------------

28 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

Countrywide Asset-backed Certificates, 2004-SD2, A1, 144A, 1.82%,
11/25/33 ........................................................... United States $ 119,031 $ 118,883
Washington Mutual Inc., 2004-AR2, A, 2.64%, 4/25/44 .................. United States 355,327 356,414
Washington Mutual Inc., 2004-AR9, A2, 2.468%, 8/25/34 ................ United States 550,000 551,081
------------
1,026,378
------------
TOTAL ASSET-BACKED SECURITIES (COST $4,354,026) ...................... 4,346,199
------------

FOREIGN GOVERNMENT AND AGENCY SECURITIES (COST $41,383) .2%
Russian Federation, Reg S, 12.75%, 6/24/28 ........................... Russia 29,000 42,286
------------

U.S. GOVERNMENT AND AGENCY SECURITIES 11.0%
U.S. Treasury Bond, 5.375%, 2/15/31 .................................. 392,000 401,617
U.S. Treasury Note, 6.00%, 8/15/09 ................................... 1,123,000 1,240,258
U.S. Treasury Note, 5.00%, 8/15/11 ................................... 266,000 280,110
------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES (COST $1,926,838) ........ 1,921,985
------------

MUNICIPAL BONDS 2.0%
California State Economic Recovery GO, 5.25%, 1/01/11 ................ United States 160,000 176,234
Tobacco Settlement Financing Corp. Revenue, 6.375%, 6/01/32 .......... United States 200,000 177,432
------------
TOTAL MUNICIPAL BONDS (COST $363,303) ................................ 353,666
------------

-----------
SHARES
-----------
PREFERRED STOCK (COST $324,663) 1.9%
COMMUNICATIONS EQUIPMENT
Centaur Funding Corp., 9.08%, pfd., B, 144A .......................... United States 263 332,038
------------
TOTAL LONG TERM INVESTMENTS (COST $18,413,954) ....................... 18,384,663
------------
SHORT TERM INVESTMENT (COST $3,604,829) 20.5%
MONEY FUND
b Franklin Institutional Fiduciary Trust Money Market Portfolio ........ United States 3,604,829 3,604,829
------------
TOTAL INVESTMENTS (COST $22,018,783) 125.3% .......................... 21,989,492
OTHER ASSETS, LESS LIABILITIES (25.3)% ............................... (4,446,560)
------------
NET ASSETS 100.0% .................................................... $17,542,932
------------

PORTFOLIO ABBREVIATION | FRN - Floating Rate Note

<FN>
a See Note 1(c) regarding securities purchased on a when-issued, delayed
delivery or to-be-announced basis.
b See Note 7 regarding investments in Franklin Institutional Fiduciary Trust
Money Market Portfolio.
c The principal amount is stated in U.S. dollars unless otherwise indicated.
</FN>

Annual Report | See notes to financial statements. | 29

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FIDUCIARY CORE PLUS FIXED INCOME FUND

------------
PERIOD ENDED
JULY 31,
2004 E
------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period ...................................... $10.00
------------
Income from investment operations: a

Net investment income b .................................................. .28

Net realized and unrealized gains (losses) ............................... .41
------------
Total from investment operations .......................................... .69
------------
Less distributions from:

Net investment income .................................................... (.30)

Net realized gains ....................................................... (.07)
------------
Total distributions ....................................................... (.37)
------------
Net asset value, end of period ............................................ $10.32
------------

Total return c ............................................................ 6.97%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ......................................... $54,132

Ratios to average net assets:

Expenses ................................................................. .84%f

Expenses net of waiver and payments by affiliate ......................... .43%f

Net investment income .................................................... 2.76%f

Portfolio turnover rate ................................................... 426.29%

Portfolio turnover rate excluding mortgage dollar rolls d ................. 222.53%

<FN>
a The amount shown for a share outstanding throughout the period does not
correlate with the aggregate net gains on investments for that period, because
of the timing of sales and repurchase of the Fund shares in relation to
fluctuating market value of the investments of the Fund.
b Based on average daily shares outstanding.
c Total return is not annualized for periods less than one year.
d See Note 1(e) regarding mortgage dollar rolls.
e For the period August 4, 2003 (commencement date) to July 31, 2004.
f Annualized.
</FN>

30 | See notes to financial statements. | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004

- ---------------------------------------------------------------------------------------------------------------------------
FIDUCIARY CORE PLUS FIXED INCOME FUND COUNTRY PRINCIPAL AMOUNT C VALUE
- ---------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS 32.0%
AIRLINES .5%

Delta Air Lines Inc., senior note, 6.718%, 1/02/23 .................. United States $ 275,137 $ 284,204
------------

AUTO COMPONENTS .1%
Keystone Automotive Industries Inc., senior sub. note, 9.75%, 11/01/13 United States 25,000 26,875
------------

CAPITAL MARKETS .3%
General Electric Capital Corp., 5.35%, 3/30/06 ...................... United States 50,000 52,011
General Electric Capital Corp., FRN, 1.664%, 9/18/06 ................ United States 120,000 120,343
------------
172,354
------------

CHEMICALS 1.0%
Equistar Chemicals LP, senior note, 10.625%, 5/01/11 ................ United States 15,000 16,725
Lyondell Chemical Co., senior secured note, 10.50%, 6/01/13 ......... United States 195,000 214,744
Monsanto Co., 4.00%, 5/15/08 ........................................ United States 287,000 285,880
------------
517,349
------------

COMMERCIAL SERVICES & SUPPLIES .3%
Tyco International Group SA, 6.75%, 2/15/11 ......................... Luxembourg 160,000 174,749
------------

CONSUMER FINANCE 1.8%
Ford Motor Credit Co., 7.375%, 10/28/09 ............................. United States 330,000 354,439
GMAC, 7.25%, 3/02/11 ................................................ United States 540,000 568,707
National Rural Utility Finance, 6.00%, 5/15/06 ...................... United States 50,000 52,599
------------
975,745
------------

CONTAINERS & PACKAGING .5%
Stone Container Corp., senior note, 8.375%, 7/01/12 ................. United States 245,000 263,375
Vitro SA De CV, 11.75%, 144A, 11/01/13 .............................. Mexico 15,000 13,912
------------
277,287
------------

DIVERSIFIED FINANCIAL SERVICES 3.2%
Core Investment Grade Bond Trust I, 4.727%, 11/30/07 ................ United States 950,000 975,569
Glencore Funding LLC, 144A, 6.00%, 4/15/14 .......................... United States 495,000 465,985
Household Finance Corp., 5.75%, 1/30/07 ............................. United States 135,000 142,553
HSBC Capital Funding LP, 9.547%, Perpetual .......................... Jersey Islands 140,000 171,338
------------
1,755,445
------------

DIVERSIFIED TELECOMMUNICATION SERVICES 4.4%
Deutsche Telekom, International Finance NV, senior sub. note, 3.875%,
7/22/08 ........................................................... Netherlands 75,000 74,280
France Telecom SA, senior note, FRN, 9.50%, 3/01/31 ................. France 655,000 836,367
Hutchison Whampoa International Ltd., senior note, 144A, 6.25%,
1/24/14 ........................................................... Hong Kong 250,000 246,560
Sprint Capital Corp., 6.90%, 5/01/19 ................................ United States 800,000 831,489
Verizon Global Funding Corp., 4.00%, 1/15/08 ........................ United States 375,000 377,323
------------
2,366,019
------------

ELECTRIC UTILITIES 3.7%
Centerpoint Energy Inc., senior note, B, 7.25%, 9/01/10 ............. United States 235,000 258,000
Consumers Energy Co., C, 4.25%, 4/15/08 ............................. United States 750,000 749,553
Southern California Edison Co., 8.00%, 2/15/07 ...................... United States 500,000 553,440
Tenaska Virginia Partners, 144A, 6.119%, 3/30/24 .................... United States 200,000 200,530
Texas New Mexico Power, senior note, 6.125%, 6/01/08 ................ United States 225,000 232,307
------------
1,993,830
------------

Annual Report | 31

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

Elektrownia Turow BV, 9.75%, 3/14/11 ................................ Netherlands 120,000 EUR $ 145,903
------------

ENERGY EQUIPMENT & SERVICES .4%
Halliburton Co., 8.75%, 2/15/21 ..................................... United States $ 200,000 241,618
------------

FOOD PRODUCTS .7%
a Smithfield Foods Inc., senior notes, 144A, 7.00%, 8/01/11 ........... United States 350,000 357,438
------------

GAS UTILITIES 1.5%
Pacific Gas & Electric Co., 6.05%, 3/01/34 .......................... United States 825,000 797,441
------------

HOTELS RESTAURANTS & LEISURE .8%
Park Place Entertainment Corp., senior sub. note, 8.125%, 5/15/11 ... United States 175,000 194,031
Royal Caribbean Cruises Ltd., senior note, 8.75%, 2/02/11 ........... United States 230,000 259,900
------------
453,931
------------
HOUSEHOLD DURABLES .1%
D.R. Horton Inc., senior note, 7.875%, 8/15/11 ...................... United States 35,000 39,200
------------

INSURANCE 4.4%
Ace Ina Holding Inc., 5.875%, 6/15/14 ............................... United States 500,000 512,549
Allstate Corp., 7.20%, 12/01/09 ..................................... United States 115,000 132,120
Arch Capital Group Ltd., senior note, 7.35%, 5/01/34 ............... Bermuda 255,000 259,308
Lincoln National Corp., 5.25%, 6/15/07 .............................. United States 50,000 52,227
Met Life Global Funding, 144A, 4.25%, 7/30/09 ....................... United States 1,200,000 1,195,985
XL Capital PLC, 6.50%, 1/15/12 ...................................... United Kingdom 225,000 243,184
------------
2,395,373
------------

MACHINERY .5%
Case New Holland Inc., senior note, 144A, 9.25%, 8/01/11 ............ United States 250,000 271,875
------------

MEDIA 5.9%
Chancellor Media Corp., senior note, 8.00%, 11/01/08 ................ United States 90,000 101,591
Comcast Cable Communications, 6.875%, 6/15/09 ....................... United States 305,000 334,966
EchoStar DBS Corp., senior note, 5.75%, 10/01/08 .................... United States 45,000 44,888
Emmis Operating Co., senior sub. note, 144A, 6.875%, 5/15/12 ........ United States 130,000 127,725
Medianews Group Inc., senior sub. note, 6.875%, 10/01/13 ............ United States 275,000 268,125
News America Holdings Inc., 9.50%, 7/15/24 .......................... United States 605,000 809,812
TCI Communications Inc., 8.75%, 8/01/15 ............................. United States 615,000 749,966
AOL Time Warner Inc., 7.70%, 5/01/32 ................................ United States 525,000 584,950
Univision Communications Inc., senior note, 3.875%, 10/15/08 ........ United States 75,000 73,883
Viacom Inc., 6.40%, 1/30/06 ......................................... United States 85,000 89,421
------------
3,185,327
------------

OIL & GAS .2%
Conoco Funding Co., 5.45%, 10/15/06 ................................. United States 100,000 104,871
------------

PAPER & FOREST PRODUCTS .5%
Georgia-Pacific Corp., senior note, 9.375%, 2/01/13 ................. United States 225,000 262,125
------------

PHARMACEUTICALS .5%
Medco Health Solutions Inc., senior note, 7.25%, 8/15/13 ............ United States 255,000 275,400
------------

REAL ESTATE INVESTMENT TRUST .3%
iStar Financial Inc., senior note, 6.00%, 12/15/10 .................. United States 180,000 183,102
------------

32 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

Washington Mutual Inc., 4.375%, 1/15/08 ............................. United States $ 50,000 $ 50,778
------------
TOTAL CORPORATE BONDS (COST $17,261,532) ............................ 17,308,239
------------

MORTGAGE-BACKED SECURITIES 15.5%
a FNMA 15 Year, 5.50%, 8/01/18 ........................................ United States 2,187,000 2,246,460
FNMA 30 Year, 6.50%, 8/01/31 ........................................ United States 28,276 29,569
FNMA 30 Year, 6.50%, 11/01/32 ....................................... United States 46,033 48,112
a FNMA 30 Year, 5.00%, 8/01/33 ........................................ United States 832,000 811,200
a FNMA 30 Year, 5.50%, 8/01/33 ........................................ United States 2,289,000 2,295,437
a FNMA 30 Year, 6.50%, 8/15/34 ........................................ United States 1,808,000 1,887,100
FNMA 30 Year, Cap 7.50%, Margin .45% + 1 Month LIBOR,
Resets Monthly, 1.70%, 1/25/32 .................................... United States 320,000 319,420
GNMA 30 Year, 6.00%, 3/20/34 ........................................ United States 583,216 597,015
GNMA 30 Year, 6.00%, 4/20/34 ........................................ United States 178,219 182,436
------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $8,396,559) .................. 8,416,749
------------

ASSET-BACKED SECURITIES 10.2%
CAPITAL MARKETS 1.0%
Bear Stearns Adjustable Rate Mortgage Trust, 2004-4, A1B, 3.517%,
6/25/34 ........................................................... United States 476,953 478,273
WFS Financial Owner Trust, 1.29%, 8/20/07 ........................... United States 39,905 39,926
------------
518,199
------------

DIVERSIFIED FINANCIAL SERVICES 7.1%
CS First Boston Mortgage Securities Corp., 2004-1, 5A1, 5.50%,
2/25/19 ........................................................... United States 101,559 101,558
Impac Secured Assets Common Owner Trust, 2003-2, A1, 5.50%,
8/25/33 ........................................................... United States 417,215 420,624
Master Alternative Loans Trust, 6.50%, 12/25/33 ..................... United States 124,415 128,867
Master Alternative Loans Trust, 2003-3, 1A1, 6.50%, 5/25/33 ......... United States 258,191 270,718
Sequoia Mortgage Trust, 2004-2, A, 1.45%, 3/20/34 ................... United States 136,629 136,315
SLM Student Loan Trust, 2002-3, A4, 1.80%, 10/25/16 ................. United States 90,000 90,286
SLM Student Loan Trust, 2003-6, A2, 1.55%, 3/15/11 .................. United States 202,308 202,430
SLM Student Loan Trust, 2004-6, A2, 1.697%, 1/25/13 ................. United States 2,500,000 2,500,781
------------
3,851,579
------------

OIL & GAS .9%
Gazprom International SA, 144A, 7.201%, 2/01/20 ..................... Russia 510,000 503,625
------------

THRIFTS & MORTGAGE FINANCE 1.2%
Countrywide Asset-backed Certificates, 2004-SD2, A1, 144A, 1.82%,
11/25/33 .......................................................... United States 59,516 59,442
Washington Mutual Inc., 2004-AR9, A2, 2.468%, 8/25/34 ............... United States 110,000 110,216
Washington Mutual Inc., 2004-AR2, A, 2.64%, 4/25/44 ................. United States 458,185 459,587
------------
629,245
------------
TOTAL ASSET-BACKED SECURITIES (COST $5,494,183) ..................... 5,502,648
------------

FOREIGN GOVERNMENT AND AGENCY SECURITIES 5.1%
Bundesrepublik Deutschland, 5.25%, 1/04/11 .......................... Germany 1,073,000 EUR 1,398,155
Government of Mexico, 9.00%, 12/20/12 ............................... Mexico 12,820,400 MXN 1,054,207
Republic of Brazil, 8.25%, 1/20/34 .................................. Brazil 50,000 39,125

Annual Report | 33

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

Russian Federation, Reg S, 12.75%, 6/24/28 .......................... Russia $ 77,000 $ 112,277
United Mexican States, 7.50%, 1/14/12 ............................... Mexico 150,000 165,375
------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES (COST $2,776,235) .... 2,769,139
------------

U.S. GOVERNMENT AND AGENCY SECURITIES 7.2%
U.S. Treasury Bond, 5.375%, 2/15/31 ................................. United States 1,046,000 1,071,661
U.S. Treasury Note, 5.625%, 5/15/08 ................................. United States 419,000 452,422
U.S. Treasury Note, 6.00%, 8/15/09 .................................. United States 2,143,000 2,366,761
------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES (COST $3,865,264) ....... 3,890,844
------------

MUNICIPAL BONDS 1.8%
Badger TOB Asset Securitization Corp., Asset-Backed, 6.125%, 6/01/27 United States 50,000 46,110
California State Economic Recovery GO, 5.25%, 1/01/11 ............... United States 395,000 435,077
Northern TOB Securitization Corp., 4.75%, 6/01/15 ................... United States 125,000 121,956
Tobacco Settlement Financing Corp. Revenue, 4.375%, 6/01/19 ......... United States 300,000 286,056
Tobacco Settlement Financing Corp. Revenue, 6.375%, 6/01/32 ......... United States 70,000 62,101
------------
TOTAL MUNICIPAL BONDS (COST $955,835) ............................... 951,300
------------

-------------------
SHARES
-------------------
PREFERRED STOCKS 1.6%
COMMUNICATIONS EQUIPMENT 1.6%
Centaur Funding Corp., 9.08%, pfd., B, 144A ......................... United States 675 852,187
------------
MEDIA
Newscorp Overseas, 5.75%, pfd. ...................................... Cayman Islands 1,550 38,859
------------
TOTAL PREFERRED STOCKS (COST $873,951) .............................. 891,046
------------
TOTAL LONG TERM INVESTMENTS (COST $39,623,559) ...................... 39,729,965
------------
SHORT TERM INVESTMENTS 45.5%
MONEY FUND 14.3%
b Franklin Institutional Fiduciary Trust Money Market Portfolio ....... United States 7,746,435 7,746,435
------------

-------------------
PRINCIPAL AMOUNT C
-------------------
U.S. GOVERNMENT AND AGENCY SECURITIES 31.2%
FHLB, 8/27/04 ....................................................... United States $ 2,500,000 2,497,665
U.S. Treasury Note, 7.875%, 11/15/04 ................................ United States 8,217,000 8,366,903
U.S. Treasury Note, 1.75%, 12/31/04 ................................. United States 6,000,000 6,004,926
------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES ......................... 16,869,494
------------
TOTAL SHORT TERM INVESTMENTS (COST $24,613,687) ..................... 24,615,929
------------
TOTAL INVESTMENTS (COST $64,237,246) 118.9% ......................... 64,345,894
NET UNREALIZED GAIN ON FORWARD EXCHANGE CONTRACTS ................... 32,158
OTHER ASSETS, LESS LIABILITIES (18.9)% .............................. (10,246,041)
------------
NET ASSETS 100.0% ................................................... $54,132,011
------------

<FN>
PORTFOLIO ABBREVIATION | FRN - Floating Rate Note

CURRENCY ABBREVIATIONS | EUR - Euro | MXN - Mexican Peso

a See Note 1(c) regarding securities purchased on a when-issued, delayed
delivery or to-be-announced basis.

b See Note 7 regarding investments in Franklin Institutional Fiduciary Trust
Money Market Portfolio.

c The principal amount is stated in U.S. dollars unless otherwise indicated.
</FN>

34 | See notes to financial statements. | Annual Report

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

--------------------
YEAR ENDED JULY 31,
2004 2003 C
--------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)

Net asset value, beginning of year ................................ $12.06 $10.00
--------------------

Income from investment operations:

Net investment income a .......................................... .02 .07

Net realized and unrealized gains (losses) ....................... 4.07 2.02
--------------------
Total from investment operations .................................. 4.09 2.09
--------------------
Less distributions from:

Net investment income ............................................ (.08) (.03)

Net realized gains ............................................... (.37) --
--------------------
Total distributions ............................................... (.45) (.03)
--------------------
Net asset value, end of year ...................................... $15.70 $12.06
--------------------

Total return b .................................................... 34.25% 20.92%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of year (000's) ................................... $8,653 $2,411

Ratios to average net assets:

Expenses ......................................................... 1.53% 5.06%d

Expenses net of waiver and payments by affiliate ................. .95% .75%d

Net investment income ............................................ .13% .65%d

Portfolio turnover rate ........................................... 108.64% 126.43%

<FN>
a Based on average daily shares outstanding.
b Total return is not annualized for periods less than one year.
c For the period October 15, 2002 (effective date) to July 31, 2003.
d Not annualized.
</FN>

Annual Report | See notes to financial statements. | 35

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004

- ---------------------------------------------------------------------------------------------------------------------------
FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS 94.9%
AUTO COMPONENTS 1.6%

Nokian Renkaat OYJ ..................................................... Finland 1,490 $ 141,358
-----------

BEVERAGES 1.6%
McGuigan Simeon Wines Ltd. ............................................. Australia 38,800 134,500
-----------

BIOTECHNOLOGY 1.4%
a Actelion Ltd. .......................................................... Switzerland 1,270 121,357
-----------

BUILDING PRODUCTS 1.6%
Wienerberger AG ........................................................ Austria 3,900 139,923
-----------

CAPITAL MARKETS 3.2%
Aktiv Kapital ASA ...................................................... Norway 9,600 128,886
AWD Holdings AG ........................................................ Germany 4,160 146,747
-----------
275,633
-----------

CHEMICALS 1.7%
Whatman PLC ............................................................ United Kingdom 40,000 150,022
-----------

COMMERCIAL SERVICES & SUPPLIES 8.7%
A.B.C. Learning Centres Ltd. ........................................... Australia 46,800 120,281
DIS Deutscher Industries ............................................... Germany 4,570 132,104
Fullcast Co. Ltd. ...................................................... Japan 56 119,079
a lastminute.com PLC ..................................................... United Kingdom 35,000 83,376
Park24 Co. Ltd. ........................................................ Japan 4,400 153,569
a Solvus SA .............................................................. Belgium 2,074 29,340
Watabe Wedding Corp. ................................................... Japan 5,400 113,857
-----------
751,606
-----------

COMMUNICATIONS EQUIPMENT 6.2%
a Spirent PLC ............................................................ United Kingdom 94,000 94,013
a Tamura Taiko Holdings Inc. ............................................. Japan 35,000 169,261
Tandberg ASA ........................................................... Norway 14,620 131,551
a Tandberg Television ASA ................................................ Norway 21,000 145,468
-----------
540,293
-----------

COMPUTERS & PERIPHERALS 1.4%
a Gemplus International SA ............................................... France 62,360 124,630
-----------

CONSTRUCTION & ENGINEERING 1.7%
Commuture Corp. ........................................................ Japan 19,000 150,016
-----------

CONTAINERS & PACKAGING 1.4%
Goodpack Ltd. .......................................................... Singapore 218,000 121,621
-----------

DIVERSIFIED TELECOMMUNICATION SERVICES 2.6%
a eAccess Ltd. ........................................................... Japan 140 141,187
Index Corp. ............................................................ Japan 19 85,918
-----------
227,105
-----------

36 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

Gamesa Corporacion Tecnologica SA ...................................... Spain 9,300 $ 130,778
Ushio Inc. ............................................................. Japan 8,000 133,435
-----------
264,213
-----------

ELECTRONIC EQUIPMENT & INSTRUMENTS 6.2%
IDT International Ltd. ................................................. Hong Kong 600,000 138,464
a Kiryung Electronic Co. Ltd. ............................................ South Korea 32,200 133,949
Neomax Co. Ltd. ........................................................ Japan 10,000 161,231
OPTEX Co. Ltd. ......................................................... Japan 4,500 104,167
-----------
537,811
-----------

FOOD PRODUCTS 1.6%
Vilmorin CL & CIE ...................................................... France 830 134,902
-----------

HEALTH CARE EQUIPMENT & SUPPLIES 6.3%
Getinge AB, B .......................................................... Sweden 12,880 148,540
Nakanishi Inc. ......................................................... Japan 2,000 139,967
Phonak Holding AG ...................................................... Switzerland 4,500 129,265
Topcon Corp. ........................................................... Japan 13,000 129,819
-----------
547,591
-----------

HEALTH CARE PROVIDERS & SERVICES 4.6%
Alfresa Holdings Corp. ................................................. Japan 2,400 130,277
Audika ................................................................. France 1,930 130,355
Primary Health Care Ltd. ............................................... Australia 32,800 137,360
-----------
397,992
-----------

HOTELS RESTAURANTS & LEISURE 1.5%
Kuoni Reisen Holding AG, B ............................................. Switzerland 320 130,816
-----------

HOUSEHOLD DURABLES 4.8%
Bang & Olufsen AS, B ................................................... Denmark 2,650 147,184
Merloni Elettrodomestici SpA ........................................... Italy 7,800 136,636
a Pace Micro Technology PLC .............................................. United Kingdom 120,000 129,837
-----------
413,657
-----------

HOUSEHOLD PRODUCTS 1.6%
a Oriflame Cosmetics SA .................................................. Sweden 4,200 139,564
-----------

INTERNET SOFTWARE & SERVICES 2.7%
a Access Co. Ltd. ........................................................ Japan 5 101,835
United Internet AG ..................................................... Germany 5,450 127,818
-----------
229,653
-----------

IT SERVICES 1.5%
TietoEnator OYJ ........................................................ Finland 4,680 130,156
-----------

LEISURE EQUIPMENT & PRODUCTS 1.7%
Beneteau ............................................................... France 2,300 143,992
-----------

MACHINERY 1.5%
Arrk Corp. ............................................................. Japan 3,400 128,734
-----------

Annual Report | 37

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

Taylor Nelson Sofres PLC ............................................... United Kingdom 38,450 $ 147,879
-----------

MULTILINE RETAIL 1.6%
Mothercare PLC ......................................................... United Kingdom 23,500 136,961
-----------

OFFICE ELECTRONICS 1.5%
Neopost SA ............................................................. France 2,260 131,149
-----------

PERSONAL PRODUCTS 1.4%
OSIM International Ltd. ................................................ Singapore 208,000 123,295
-----------

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.3%
a Micronas Semiconductor Holding AG ...................................... Switzerland 2,800 116,434
-----------

SOFTWARE 3.0%
a Telelogic AB ........................................................... Sweden 75,000 130,963
a Temenos Group AG ....................................................... Switzerland 15,600 127,424
-----------
258,387
-----------

SPECIALTY RETAIL 11.0%
a Aoki International Co. Ltd. ............................................ Japan 10,300 136,588
Bookoff Corp. .......................................................... Japan 8,600 130,402
Germanos SA ............................................................ Greece 5,400 142,509
Nitori Co. Ltd. ........................................................ Japan 2,100 129,442
Point Inc. ............................................................. Japan 5,040 124,356
Sa Sa International Holdings Ltd. ...................................... Hong Kong 360,000 145,387
USS Co. Ltd. ........................................................... Japan 1,750 141,313
-----------
949,997
-----------

TEXTILES, APPAREL & LUXURY GOODS 1.7%
Burberry Group PLC ..................................................... United Kingdom 21,000 143,203
-----------

WIRELESS TELECOMMUNICATION SERVICES 1.5%
a Mobistar SA ............................................................ Belgium 1,913 126,789
-----------
TOTAL COMMON STOCKS (COST $7,105,193) .................................. 8,211,239
-----------
PREFERRED STOCK (COST $141,477) 1.5%
MACHINERY
Jungheinrich AG, 3.00%, pfd. ........................................... Germany 5,900 127,859
-----------
TOTAL LONG TERM INVESTMENTS (COST $7,246,670) .......................... 8,339,098
-----------

-----------------
PRINCIPAL AMOUNT
-----------------
SHORT TERM INVESTMENT (COST $240,000) 2.7%
TIME DEPOSIT
Den Danske Bank, 1.29%, 8/02/04 (Maturity Value $240,026) .............. United States $ 240,000 240,000
-----------
TOTAL INVESTMENTS (COST $7,486,670) 99.1% .............................. 8,579,098
OTHER ASSETS, LESS LIABILITIES .9% ..................................... 74,324
-----------
NET ASSETS 100.0% ...................................................... $8,653,422
-----------

<FN>
a Non-income producing.
</FN>

38 | See notes to financial statements. | Annual Report

Franklin Global Trust

FINANCIAL STATEMENTS

STATEMENTS OF ASSETS AND LIABILITIES
July 31, 2004

-------------------------------------------------
FRANKLIN
FIDUCIARY FIDUCIARY INTERNATIONAL
CORE FIXED CORE PLUS FIXED SMALLER COMPANIES
INCOME FUND INCOME FUND GROWTH FUND
-------------------------------------------------
Assets:
Investments in securities:

Cost - Unaffiliated issuers ........................................ $18,413,954 $56,490,811 $7,486,670
Cost - Sweep Money Fund (Note 7) ................................... 3,604,829 7,746,435 --
------------------------------------------------
Value - Unaffiliated issuers ....................................... 18,384,663 56,599,459 8,579,098
Value - Sweep Money Fund (Note 7) .................................. 3,604,829 7,746,435 --
Cash ................................................................ -- -- 74,372
Foreign currency, at value (Cost $74,488 and $12,109, respectively) . -- 72,226 11,207
Receivables:
Investment securities sold ......................................... -- 2,670,014 331,270
Capital shares sold ................................................ 54,233 25,049 --
Dividends and interest ............................................. 149,179 604,591 5,734
Affiliates ......................................................... 7,035 -- --
Offering costs [Note 1(h)] .......................................... 1,672 159 --
Unrealized gain on forward exchange contracts (Note 8) .............. -- 32,158 --
------------------------------------------------
Total assets ................................................... 22,201,611 67,750,091 9,001,681
------------------------------------------------
Liabilities:
Payables:
Investment securities purchased .................................... 4,651,819 13,588,575 329,848
Capital shares redeemed ............................................ -- 18,572 --
Affiliates ......................................................... -- 6,398 12,956
Custodian fees (Note 4) ............................................ 93 120 1,000
Other liabilities ................................................... 6,767 4,415 4,455
------------------------------------------------
Total liabilities .............................................. 4,658,679 13,618,080 348,259
------------------------------------------------
Net assets, at value .......................................... $17,542,932 $54,132,011 $8,653,422
------------------------------------------------
Net assets consist of:
Undistributed net investment income ................................. $ 25,293 $ 7,390 $ 11,519
Net unrealized appreciation (depreciation) .......................... (29,291) 137,543 1,089,340
Accumulated net realized gain (loss) ................................ (37,074) (155,198) 725,817
Capital shares ...................................................... 17,584,004 54,142,276 6,826,746
------------------------------------------------
Net assets, at value .......................................... $17,542,932 $54,132,011 $8,653,422
------------------------------------------------
Shares outstanding .................................................. 1,760,043 5,246,078 551,057
------------------------------------------------
Net asset value and maximum offering price per share a .............. $9.97 $10.32 $15.70
------------------------------------------------

<FN>
a Redemption price is equal to net asset value less any applicable redemption
fees retained by the Fund.
</FN>

Annual Report | See notes to financial statements. | 39

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF OPERATIONS
for the year ended July 31, 2004

--------------------------------------------------
FRANKLIN
FIDUCIARY CORE FIDUCIARY CORE INTERNATIONAL
FIXED INCOME PLUS FIXED SMALLER COMPANIES
FUND B INCOME FUND C GROWTH FUND
--------------------------------------------------
Investment income: a
Dividends:

Unaffiliated issuers ................................................. $ 7,457 $ 4,555 $ 76,177
Sweep Money Fund (Note 7) ............................................ 15,313 21,617 --
Interest .............................................................. 361,937 493,759 2,605
------------------------------------------------
Total investment income .......................................... 384,707 519,931 78,782
------------------------------------------------
Expenses:
Management fees (Note 3) .............................................. 35,724 46,296 54,277
Administrative fees (Note 3) .......................................... 23,847 32,417 14,474
Transfer agent fees (Note 3) .......................................... 180 222 231
Custodian fees (Note 4) ............................................... 272 624 3,934
Reports to shareholders ............................................... 4,316 1,989 2,879
Registration and filing fees .......................................... 9,928 10,530 9,120
Amortization of offering costs [Note 1(h)] ............................ 18,395 18,903 8,522
Professional fees ..................................................... 20,128 18,793 16,657
Other ................................................................. 5,562 6,785 908
------------------------------------------------
Total expenses ................................................... 118,352 136,559 111,002
Expense reductions (Note 4) ...................................... (38) (3) (214)
Expenses waived/paid by affiliate (Note 3) ....................... (64,414) (66,444) (41,692)
------------------------------------------------
Net expenses .................................................... 53,900 70,112 69,096
------------------------------------------------
Net investment income .......................................... 330,807 449,819 9,686
------------------------------------------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments .......................................................... 181,439 (73,989) 869,518
Foreign currency transactions ........................................ -- 61,151 3,731
------------------------------------------------
Net realized gain (loss) ........................................ 181,439 (12,838) 873,249
Net unrealized appreciation (depreciation) on:
Investments .......................................................... (29,291) 140,806 717,509
Translation of assets and liabilities denominated in
foreign currencies .................................................. -- (3,263) (4,179)
------------------------------------------------
Net unrealized appreciation (depreciation) ...................... (29,291) 137,543 713,330
------------------------------------------------
Net realized and unrealized gain (loss) ................................ 152,148 124,705 1,586,579
------------------------------------------------
Net increase (decrease) in net assets resulting from operations ........ $482,955 $574,524 $1,596,265
------------------------------------------------

<FN>
a Net of foreign taxes of $49 and $10,296 for Fiduciary Core Plus Fixed Income
Fund and Franklin International Smaller Companies Growth Fund, respectively.
b For the period August 29, 2003 (commencement date) to July 31, 2004.
c For the period August 4, 2003 (commencement date) to July 31, 2004.
</FN>

40 | See notes to financial statements. | Annual Report

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS
for the years ended July 31, 2004 and 2003

------------------------------------------------------------
FIDUCIARY CORE FIDUCIARY CORE FRANKLIN INTERNATIONAL
FIXED PLUS FIXED SMALLER COMPANIES
INCOME FUND INCOME FUND GROWTH FUND
2004 A 2004 B 2004 2003 C
------------------------------------------------------------
Increase (decrease) in net assets:
Operations:

Net investment income ................................ $ 330,807 $ 449,819 $ 9,686 $ 13,534
Net realized gain (loss) from investments and foreign
currency transactions ............................... 181,439 (12,838) 873,249 28,928
Net unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies ................... (29,291) 137,543 713,330 376,010
------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations ................................. 482,955 574,524 1,596,265 418,472
Distributions to shareholders from:
Net investment income ................................ (482,411) (561,516) (34,278) (6,980)
Net realized gains ................................... (58,547) (42,176) (162,930) --
------------------------------------------------------------
Total distributions to shareholders ................... (540,958) (603,692) (197,208) (6,980)
Capital share transactions (Note 2) ................... 17,600,935 54,161,179 4,842,873 2,000,000
------------------------------------------------------------
Net increase (decrease) in net assets ............ 17,542,932 54,132,011 6,241,930 2,411,492
Net assets:
Beginning of year ..................................... -- -- 2,411,492 --
------------------------------------------------------------
End of year ........................................... $17,542,932 $54,132,011 $8,653,422 $2,411,492
------------------------------------------------------------
Undistributed net investment income:
End of year ........................................... $ 25,293 $ 7,390 $ 11,519 $ 17,962
------------------------------------------------------------

<FN>
a For the period August 29, 2003 (commencement date) to July 31, 2004.
b For the period August 4, 2003 (commencement date) to July 31, 2004.
c For the period October 15, 2002 (effective date) to July 31, 2003.
</FN>

Annual Report | See notes to financial statements. | 41

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Global Trust (the Trust) is registered under the Investment Company Act
of 1940 as an open-end investment company, consisting of seven separate series.
All funds included in this report (the Funds) are diversified except the
Fiduciary Core Plus Fixed Income Fund. The financial statements of the remaining
funds in the series are presented separately. The investment objectives of the
Funds included in this report are:

- --------------------------------------------------------------------------------------------------------
TOTAL RETURN LONG TERM CAPITAL APPRECIATION
- --------------------------------------------------------------------------------------------------------

Fiduciary Core Fixed Income Fund Franklin International Smaller Companies Growth Fund
Fiduciary Core Plus Fixed Income Fund

The following summarizes the Funds' significant accounting policies.

A. SECURITY VALUATION

Securities listed or traded on a recognized national exchange are valued at the
last reported sales price. Securities listed or traded on NASDAQ are valued at
their official closing price. Debt securities, other over-the-counter securities
and listed securities for which no sale is reported are valued within the range
of the latest quoted bid and asked prices by independent pricing services or
recognized dealers in such securities. Foreign securities are valued at the
close of trading of the foreign exchange or the NYSE, whichever is earlier. If
events occur that materially affect the values of securities after the prices or
foreign exchange rates are determined, but prior to 4:00 p.m. Eastern time or
the close of trading on the NYSE, whichever is earlier, or if market quotations
are deemed not readily available or reliable, the securities will be valued at
fair value. Investments in open-end mutual funds are valued at the closing net
asset value. All security valuation procedures are approved by the Board of
Trustees.

B. FOREIGN CURRENCY TRANSLATION

42 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. SECURITIES PURCHASED ON A WHEN-ISSUED, DELAYED DELIVERY, OR TBA BASIS

The Fiduciary Core Fixed Income Fund and the Fiduciary Core Plus Fixed Income
Fund may purchase securities on a when-issued, delayed delivery, or
to-be-announced (TBA) basis, with payment and delivery scheduled for a future
date. These transactions are subject to market fluctuations and are subject to
the risk that the value at delivery may be more or less than the trade date
purchase price. Although the funds will generally purchase these securities with
the intention of holding the securities, they may sell the securities before the
settlement date. Sufficient assets have been segregated for these securities.

D. FOREIGN CURRENCY CONTRACTS

The Funds may enter into forward exchange contracts to hedge against
fluctuations in foreign exchange rates. A forward exchange contract is an
agreement between two parties to exchange different currencies at an agreed upon
exchange rate at a future date. These contracts are valued daily and the Funds'
equity therein is included in the Statements of Assets and Liabilities. Realized
and unrealized gains and losses on these contracts are included in the
Statements of Operations.

E. MORTGAGE DOLLAR ROLLS

The Fiduciary Core Fixed Income Fund and the Fiduciary Core Plus Fixed Income
Fund enter into mortgage dollar rolls, typically on a TBA basis. Dollar rolls
are agreements between the fund and a financial institution to simultaneously
sell and repurchase a mortgage-backed security at a future date. Gains or losses
are realized at the time of the sale and the difference between the repurchase
price and sale price is recorded as an unrealized gain to the fund. The risks of
mortgage dollar roll transactions include the potential inability of the
counterparty to fulfill its obligations.

F. INCOME TAXES

Annual Report | 43

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

G. 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.
Certain income from foreign securities is recorded as soon as information is
available. Interest income and estimated expenses are accrued daily. Discounts
and premiums on securities purchased are amortized over the lives of the
respective securities. Dividend income and distributions to shareholders are
recorded on the ex-dividend date.

H. OFFERING COSTS

Offering costs are amortized on a straight line basis over twelve months.

I. ACCOUNTING ESTIMATES

J. REDEMPTION FEES

K. GUARANTEES AND INDEMNIFICATIONS

44 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

2. SHARES OF BENEFICIAL INTEREST

At July 31, 2004, there were an unlimited number of shares authorized ($.01 par
value). Transactions in the Funds' shares were as follows:

------------------------------------------------------
FIDUCIARY CORE FIDUCIARY CORE
FIXED INCOME FUND A PLUS FIXED INCOME FUND B
------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------
Period ended July 31, 2004

Shares sold ............................. 2,647,196 $26,722,232 5,285,629 $54,569,730
Shares issued in reinvestment
of distributions ........................ 10,151 103,332 28,256 289,874
Shares redeemed ......................... (897,304) (9,224,629) (67,807) (698,425)
------------------------------------------------------
Net increase (decrease) ................. 1,760,043 $17,600,935 5,246,078 $54,161,179
------------------------------------------------------

------------------------
FRANKLIN
INTERNATIONAL SMALLER
COMPANIES GROWTH FUND
------------------------
SHARES AMOUNT
------------------------
Year ended July 31, 2004
Shares sold ............................. 349,891 $4,834,480
Shares issued in reinvestment
of distributions ........................ 6,040 88,970
Shares redeemed ......................... (4,874) (80,577)
------------------------
Net increase (decrease) ................. 351,057 $4,842,873
------------------------
Period ended July 31, 2003 c
Shares sold ............................. 200,000 $2,000,000
------------------------
Net increase (decrease) ................. 200,000 $2,000,000
------------------------

3. TRANSACTIONS WITH AFFILIATES

Certain officers and trustees of the Funds are also officers and/or directors of
the following entities:

- -------------------------------------------------------------------------------------
ENTITY AFFILIATION
- -------------------------------------------------------------------------------------

Fiduciary International Inc. (Fiduciary) Investment manager
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

The Fiduciary Core Fixed Income Fund and the Fiduciary Core Plus Fixed Income
Fund pay an investment management fee to Fiduciary of .30% per year of the
average daily net assets of each fund.

Annual Report | 45

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

The Franklin International Smaller Companies Growth Fund pays an investment
management fee to Advisers of .75% per year of the average daily net assets of
the fund.

Under a subadvisory agreement, Fiduciary, an affiliate of Advisers, provides
subadvisory services to the Franklin International Smaller Companies Growth Fund
and receives from Advisers fees based on the average daily net assets of the
fund.

The Funds pay an administrative fee to FT Services of .20% per year of the
Funds' average daily net assets.

Fiduciary, Advisers and FT Services agreed in advance to voluntarily waive
administrative and management fees and assume payment of other expenses through
July 31, 2004, as noted in the Statements of Operations. Total expenses
waived/paid by Fiduciary, Advisers and FT Services are not subject to
reimbursement by the Funds subsequent to the Funds' fiscal year end.

The Funds paid transfer agent fees as noted in the Statements of Operations, of
which the following amounts were paid to Investor Services:

- ------------------------------------------------------------------------------
FIDUCIARY FIDUCIARY FRANKLIN
CORE CORE PLUS INTERNATIONAL
FIXED INCOME FIXED INCOME SMALLER COMPANIES
FUND FUND GROWTH FUND
- ------------------------------------------------------------------------------
Transfer agent fees ......... $23 $55 $36

At July 31, 2004, Franklin Resources, Inc. owned 36.29% of the Franklin
International Smaller Companies Growth Fund.

4. EXPENSE OFFSET ARRANGEMENTS

5. INCOME TAXES

At July 31, 2004, the Fiduciary Core Fixed Income Fund and the Fiduciary Core
Plus Fixed Income Fund had deferred capital losses occurring subsequent to
October 31, 2003 of $17,636 and $41,312, respectively. For tax purposes, such
losses will be reflected in the year ending July 31, 2005.

46 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. INCOME TAXES (CONTINUED)

At July 31, 2004, the Fiduciary Core Plus Fixed Income Fund and the Franklin
International Smaller Companies Growth Fund had deferred currency losses
occurring subsequent to October 31, 2003 of $12,655 and $6,175, respectively.
For tax purposes, such losses will be reflected in the year ending July 31,
2005.

The tax character of distributions paid during the years ended July 31, 2004 and
2003, was as follows:

------------------------------------------------------------
FIDUCIARY FIDUCIARY FRANKLIN INTERNATIONAL
CORE FIXED CORE PLUS FIXED SMALLER COMPANIES
INCOME FUND INCOME FUND GROWTH FUND
------------------------------------------------------------
2004 2004 2004 2003
------------------------------------------------------------

Distributions paid from-
ordinary income ....................... $540,958 $603,692 $197,208 $6,980
------------------------------------------------------------

Net investment income (loss) differs for financial statement and tax purposes
primarily due to differing treatments of foreign currency transactions, mortgage
dollar rolls, paydown losses, offering costs, and bond discounts and premiums.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales, foreign currency
transactions, mortgage dollar rolls, paydown losses, and bond discounts and
premiums.

At July 31, 2004, the cost of investments, net unrealized appreciation
(depreciation), undistributed ordinary income and undistributed long term
capital gains for income tax purposes were as follows:

----------------------------------------------
FIDUCIARY FIDUCIARY FRANKLIN
CORE CORE PLUS INTERNATIONAL
FIXED INCOME FIXED INCOME SMALLER COMPANIES
FUND FUND GROWTH FUND
----------------------------------------------

Cost of investments ................................ $22,064,590 $64,492,548 $7,486,670
----------------------------------------------
Unrealized appreciation ............................ $ 44,356 $ 189,846 $1,338,155
Unrealized depreciation ............................ (119,454) (336,500) (245,727)
----------------------------------------------
Net unrealized appreciation (depreciation) ......... $ (75,098) $ (146,654) $1,092,428
----------------------------------------------

Undistributed ordinary income ...................... $ 51,663 $ 205,405 $ 544,171
Undistributed long term capital gains .............. -- -- 199,340
----------------------------------------------
Distributable earnings ............................. $ 51,663 $ 205,405 $ 743,511
----------------------------------------------

Annual Report | 47

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short-term securities) for the
year ended July 31, 2004, were as follows:

--------------------------------------------------
FIDUCIARY FIDUCIARY FRANKLIN
CORE CORE PLUS INTERNATIONAL
FIXED INCOME FIXED INCOME SMALLER COMPANIES
FUND FUND GROWTH FUND
--------------------------------------------------
Purchases .................. $80,452,977 $118,696,635 $11,916,866
Sales ...................... $62,112,913 $ 63,958,640 $ 7,506,212

7. INVESTMENTS IN FRANKLIN INSTITUTIONAL FIDUCIARY TRUST MONEY MARKET PORTFOLIO

The Funds may invest in the Franklin Institutional Fiduciary Trust Money Market
Portfolio (the Sweep Money Fund), an open-end investment company managed by
Advisers. Management fees paid by the Funds are reduced on assets invested in
the Sweep Money Fund, in an amount not to exceed the management fees paid by the
Sweep Money Fund.

8. FORWARD CURRENCY CONTRACTS

At July 31, 2004, the Fiduciary Core Plus Fixed Income Fund has outstanding
forward exchange contracts as set out below. The contracts are reported in the
financial statements at the fund's net equity, as measured by the difference
between the forward exchange rates at the reporting date and the forward
exchange rates at the day of entry into the contracts.

- -----------------------------------------------------------------------------------------------------
IN SETTLEMENT UNREALIZED
CONTRACTS TO SELL EXCHANGE FOR DATE GAIN (LOSS)
- -----------------------------------------------------------------------------------------------------

905,617 Euros ............................... U.S. $1,107,569 8/27/04 $17,767
141,978 Euros ............................... 174,065 8/27/04 3,212
271,840 Euros ............................... 328,926 8/27/04 1,799
---------- ---------
U.S. $1,610,560 $22,778
---------- ---------
Net unrealized gain (loss) on offsetting forward currency contracts ...................... 9,380
---------
Net unrealized gain (loss) on forward currency contracts ................................ $32,158
---------

9. SHAREHOLDER CONCENTRATIONS

The Fiduciary Core Fixed Income Fund and the Franklin International Smaller
Companies Growth Fund have a concentration of shareholders holding a significant
percentage of shares outstanding. Investment activities of these shareholders
could have a material impact on the funds. At July 31, 2004, Fiduciary Core
Fixed Income Fund had one unaffiliated shareholder holding 78.51% of the fund's
outstanding shares. Franklin International Smaller Companies Growth Fund had one
affiliated shareholder holding 36.29% of the fund's outstanding shares (as
disclosed in the Transactions with Affiliates footnote).

48 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

10. CREDIT RISK

The Fiduciary Core Plus Fixed Income Fund has 4.6% of its portfolio invested in
below investment grade and comparable quality unrated high yield securities,
which tend to be more sensitive to economic conditions than higher rated
securities. The risk of loss due to default by the issuer may be significantly
greater for the holders of high yielding securities because such securities are
generally unsecured and are often subordinated to other creditors of the issuer.

11. REGULATORY MATTERS

U.S. SECURITIES AND EXCHANGE COMMISSION (SEC) SETTLEMENT
On August 2, 2004, the Company announced that an agreement had been reached by
Franklin Advisers, Inc. with the SEC that resolved the issues resulting from the
SEC's investigation of market timing activity. The SEC issued an "order
instituting administrative and cease-and-desist proceedings pursuant to sections
203(e) and 203(k) of the Investment Advisers Act of 1940 and sections 9(b) and
9(f) of the Investment Company Act of 1940, making findings and imposing
remedial sanctions and a cease and desist order" (the "Order"). The SEC's Order
concerns the activities of a limited number of third parties that ended in 2000
and those that are the subject of the Mass. Proceeding described above.

Under the terms of the SEC's Order, pursuant to which Franklin Advisers, Inc.
neither admits nor denies any wrongdoing, Franklin Advisers, Inc. has agreed to
pay $50 million, of which $20 million is a civil penalty, to be distributed to
certain fund shareholders in accordance with a plan to be developed by an
Independent Distribution Consultant. At this time, it is unclear whether
shareholders of all funds will receive distributions or whether all shareholders
of any particular fund will receive distributions. The SEC Order also requires
Franklin Advisers, Inc. to, among other things, enhance and periodically review
compliance policies and procedures.

Annual Report | 49

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

11. REGULATORY MATTERS (CONTINUED)

OTHER GOVERNMENTAL INVESTIGATIONS (CONTINUED)
executives and employees of the Company, have received requests for information
and/or subpoenas to testify or produce documents. The Company has been 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 also informed the Company that it is considering
recommending a civil action or proceeding against Franklin Advisers, Inc. and
the Funds' principal underwriter concerning payments to securities dealers who
sell fund shares (commonly referred to as "revenue sharing"). The staff of the
California Attorney General's Office (CAGO) also has advised the Company that it
is authorized to bring a civil action against Franklin Resources, Inc. and the
Funds' principal underwriter arising from the same events. Even though the
Company currently believes that the charges the SEC staff and CAGO staff are
contemplating are unwarranted, it also believes that it is in the best interest
of the Company and fund shareholders to resolve these issues voluntarily, to the
extent the Company can reasonably do so.

50 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

11. REGULATORY MATTERS (CONTINUED)

OTHER LEGAL PROCEEDINGS (CONTINUED)
The Company's management strongly believes that the claims made in each of these
lawsuits are without merit and intends to vigorously defend against them.

Annual Report | 51

Franklin Global Trust

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FRANKLIN GLOBAL TRUST

In our opinion, the accompanying statements of assets and liabilities, including
the statements 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 Fiduciary Core Fixed Income Fund,
Fiduciary Core Plus Fixed Income Fund and Franklin International Smaller
Companies Growth Fund, separate portfolios of the Franklin Global Trust
(hereafter referred to as the "Funds") at July 31, 2004, the results of each of
their operations for the year then ended, the changes in each of their net
assets and the financial highlights for each of the periods presented, 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 Funds' 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 audits 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 July 31, 2004 by
correspondence with the custodian, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 9, 2004

52 | Annual Report

Franklin Global Trust

TAX DESIGNATION (UNAUDITED)

Under Section 852(b)(3)(C) of the Internal Revenue Code (Code), the Franklin
International Smaller Companies Growth Fund hereby designates $199,340 as a
capital gain dividend for the fiscal year ended July 31, 2004.

Under Section 854(b)(2) of the Code, the Franklin International Smaller
Companies Growth Fund hereby designates up to a maximum of $69,737 as qualified
dividends for purposes of the maximum rate under Section 1(h)(11) of the Code
for the fiscal year ended July 31, 2004. In January 2005, shareholders will
receive Form 1099-DIV which will include their share of qualified dividends
distributed during the calendar year 2004. Shareholders are advised to check
with their tax advisors for information on the treatment of these amounts on
their individual income tax returns.

At July 31, 2004, more than 50% of the Franklin International Smaller Companies
Growth Fund total assets were invested in securities of foreign issuers. In most
instances, foreign taxes were withheld from dividends paid to the fund on these
investments. The fund elects to treat foreign taxes paid under Section 853 of
the Code. This election will allow shareholders of record in December 2004, to
treat their proportionate share of foreign taxes paid by the fund as having been
paid directly by them. The shareholder shall consider these amounts as foreign
taxes paid in the tax year in which they receive the fund distribution.

The foreign tax information will be disclosed in the January 31, 2005,
semi-annual report of the fund.

Annual Report | 53

Board Members and Officers

INDEPENDENT BOARD MEMBERS

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

FRANK H. ABBOTT, III (83) Trustee Since 2000 111 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President and Director, Abbott Corporation (an investment company).
- ------------------------------------------------------------------------------------------------------------------------------------
HARRIS J. ASHTON (72) Trustee Since 2000 140 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 (76) Trustee Since 2000 49 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
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.
- ------------------------------------------------------------------------------------------------------------------------------------
S. JOSEPH FORTUNATO (72) Trustee Since 2000 141 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Attorney; and FORMERLY, member of the law firm of Pitney, Hardin, Kipp & Szuch.
- ------------------------------------------------------------------------------------------------------------------------------------
EDITH E. HOLIDAY (52) Trustee Since 2000 96 Director, Amerada Hess Corporation
One Franklin Parkway (exploration and refining of oil
San Mateo, CA 94403-1906 and gas); H.J. Heinz Company
(processed foods and allied
products); RTI International
Metals, Inc. (manufacture and
distribution of titanium); and
Canadian National Railway
(railroad).

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).
- ------------------------------------------------------------------------------------------------------------------------------------

54 | Annual Report

FRANK W.T. LAHAYE (75) Trustee Since 2000 113 Director, The California Center for
One Franklin Parkway Land Recycling (redevelopment).
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
General Partner, Las Olas L.P. (Asset Management); and FORMERLY, Chairman, Peregrine Venture Management Company (venture capital).
- ------------------------------------------------------------------------------------------------------------------------------------
GORDON S. MACKLIN (76) Trustee Since 2000 140 Director, White Mountains Insurance
One Franklin Parkway Group, Ltd. (holding company);
San Mateo, CA 94403-1906 Martek Biosciences Corporation;
MedImmune, Inc. (biotechnology);
and Overstock.com (Internet
services); and FORMERLY, Director,
MCI Communication Corporation
(subsequently known as MCI
WorldCom, Inc. and WorldCom, Inc.)
(communications services)
(1988-2002) and Spacehab, Inc.
(aerospace services) (1994-2003).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Deputy Chairman, White Mountains Insurance Group, Ltd. (holding company); and FORMERLY, Chairman, White River Corporation
(financial services) (1993-1998) and Hambrecht & Quist Group (investment banking) (1987-1992); and President, National
Association of Securities Dealers, Inc. (1970-1987).
- ------------------------------------------------------------------------------------------------------------------------------------

INTERESTED BOARD MEMBERS AND OFFICERS

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.; Director, Franklin Investment Advisory Services,
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 49 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
**CHARLES B. JOHNSON (71) Trustee and Since 2000 140 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.; Director, Fiduciary Trust Company International; and officer and/or director or trustee, as the case may be,
of some of the other subsidiaries of Franklin Resources, Inc. and of 46 of the investment companies in Franklin Templeton
Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 55

**RUPERT H. JOHNSON, JR. (63) Trustee, Trustee and 123 None
One Franklin Parkway President and President since
San Mateo, CA 94403-1906 Chief 2000 and Chief
Executive Executive Officer
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. and Franklin Investment Advisory Services, 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 49 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JAMES M. DAVIS (52) Chief Since July 2004 Not Applicable None
One Franklin Parkway Compliance
San Mateo, CA 94403-1906 Officer

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 51 of the investment companies in Franklin Templeton Investments; Director, Global Compliance, Franklin Resources,
Inc., and FORMERLY, Director of Compliance, Franklin Resources, Inc. (1994-2001).
- ------------------------------------------------------------------------------------------------------------------------------------
LAURA FERGERSON (42) Treasurer Since July 2004 Not Applicable None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 34 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).
- ------------------------------------------------------------------------------------------------------------------------------------
MARTIN L. FLANAGAN (44) Vice President Since 2000 5 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Co-President and Chief Executive Officer, Franklin Resources, Inc.; Senior Vice President and Chief Financial Officer, Franklin
Mutual Advisers, LLC; Executive Vice President, Chief Financial Officer and Director, Templeton Worldwide, Inc.; Executive Vice
President and Chief Operating Officer, Templeton Investment Counsel, LLC; President and Director, Franklin Advisers, Inc.;
Executive Vice President, Franklin Investment Advisory Services, Inc. and Franklin Templeton Investor Services, LLC; Chief
Financial Officer, Franklin Advisory Services, LLC; Chairman, Franklin Templeton 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 49 of the investment companies in
Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JIMMY D. GAMBILL (56) Senior Vice Since 2002 Not Applicable None
500 East Broward Blvd. President and
Suite 2100 Chief
Fort Lauderdale, FL 33394-3091 Executive
Officer -
Finance and
Administration

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President, Franklin Templeton Services, LLC; Senior Vice President, Templeton Worldwide, Inc.; and officer of 51 of the
investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

56 | Annual Report

DAVID P. GOSS (57) Vice President Since 2000 Not Applicable None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Associate General Counsel, Franklin Resources, Inc.; officer and director of one of the subsidiaries of Franklin Resources, Inc.;
officer of 51 of the investment companies in Franklin Templeton Investments; and FORMERLY, President, Chief Executive Officer and
Director, Property Resources Equity Trust (until 1999) and Franklin Select Realty Trust (until 2000).
- ------------------------------------------------------------------------------------------------------------------------------------
BARBARA J. GREEN (56) Vice President Since 2000 Not Applicable None
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,
Inc., 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 51
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).
- ------------------------------------------------------------------------------------------------------------------------------------
EDWARD B. JAMIESON (56) Vice President Since 2000 Not Applicable None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Executive Vice President and Portfolio Manager, Franklin Advisers, Inc.; officer of other subsidiaries of Franklin Resources,
Inc.; and officer and trustee of five of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
MICHAEL O. MAGDOL (67) Vice President Since 2002 Not Applicable Director, FTI Banque, Arch
600 Fifth Avenue - AML Chemicals, Inc. and Lingnan
Rockefeller Center Compliance Foundation.
New York, NY 10020-2302

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice Chairman, Chief Banking Officer and Director, Fiduciary Trust Company International; and officer and/or director, as the case
may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 48 of the investment companies in Franklin Templeton
Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
CHRISTOPHER J. MOLUMPHY (42) Vice President Since 2000 Not Applicable None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Executive Vice President, Franklin Advisers, Inc.; and officer of six of the investment companies in Franklin Templeton
Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 57

MURRAY L. SIMPSON (67) Vice President Since 2000 Not Applicable None
One Franklin Parkway and Secretary
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Executive Vice President and General Counsel, Franklin Resources, Inc.; officer and/or director, as the case may be, of some of
the subsidiaries of Franklin Resources, Inc. and of 51 of the investment companies in Franklin Templeton Investments; and
FORMERLY, Chief Executive Officer and Managing Director, Templeton Franklin Investment Services (Asia) Limited (until 2000); and
Director, Templeton Asset Management Ltd. (until 1999).
- ------------------------------------------------------------------------------------------------------------------------------------
GALEN G. VETTER (52) Chief Financial Since May 2004 Not Applicable None
500 East Broward Blvd. Officer
Suite 2100
Fort Lauderdale, FL 33394-3091

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 51 of the investment companies in Franklin Templeton Investments; Senior Vice President, Franklin Templeton Services,
LLC; and FORMERLY, Managing Director, RSM McGladrey, Inc.; and Partner, McGladrey & Pullen, LLP.
- ------------------------------------------------------------------------------------------------------------------------------------

THE SARBANES-OXLEY ACT OF 2002 AND RULES ADOPTED BY THE SECURITIES AND EXCHANGE
COMMISSION REQUIRE THE TRUST TO DISCLOSE WHETHER THE TRUST'S AUDIT COMMITTEE
INCLUDES AT LEAST ONE MEMBER WHO IS AN AUDIT COMMITTEE FINANCIAL EXPERT WITHIN
THE MEANING OF SUCH ACT AND RULES. THE TRUST'S BOARD OF TRUSTEES HAVE 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 TRUST'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 PRINCIPALS 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 TRUST'S, 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 1-800/321-8563.

58 | Annual Report

Franklin Global Trust

PROXY VOTING POLICIES AND PROCEDURES AND PROXY VOTING RECORD

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. Copies of the Fund's proxy voting records are also made available online
at franklintempleton.com and posted on the Securities and Exchange Commission's
website at sec.gov and reflect the 12-month period beginning July 1, 2003 and
ending June 30, 2004.

QUARTERLY STATEMENT OF INVESTMENTS

The Funds file a complete statement of investments with the 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 | 59

This page intentionally left blank.

[LOGO OMITTED] FRANKLIN TEMPLETON INSTITUTIONAL
FRANKLIN[R] TEMPLETON[R] 600 Fifth Avenue
INSTITUTIONAL New York, NY 10020
FRANKLINTEMPLETONINSTITUTIONAL.COM

ANNUAL REPORT
FIDUCIARY CORE FIXED INCOME FUND
FIDUCIARY CORE PLUS FIXED INCOME FUND

INVESTMENT MANAGER
Fiduciary International, Inc.

ANNUAL REPORT
FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

INVESTMENT MANAGER
Franklin Advisers, Inc.

DISTRIBUTOR
Franklin/Templeton Distributors, Inc.

FRANKLIN TEMPLETON INSTITUTIONAL SERVICES
1-800/321-8563
franklintempletoninstitutional.com

This report must be preceded or accompanied by the current Fiduciary Core Fixed
Income Fund, Fiduciary Core Plus Fixed Income Fund, and Franklin International
Smaller Companies Growth Fund prospectus, which contains more complete
information including charges, expenses, and risk factors. Like any investment
in securities, the value of the Fund's portfolio will be subject to the risk of
loss from market, currency, economic, political, and other factors. The Fund and
its investors are not protected from such losses by the Investment Manager.
Therefore, investors who cannot accept this risk should not invest in shares of
the Fund.

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.

FGT2A2004 09/04

ANNUAL REPORT 07 31 2004
- --------------------------------------------------------------------------------

THE EXPERTISE OF MANY. THE STRENGTH OF ONE.
- --------------------------------------------------------------------------------

FRANKLIN GLOBAL TRUST

- --------------------------------------------------------------------------------

Fiduciary High Income Fund

[LOGO OMITTED]
FRANKLIN[R] TEMPLETON[R]
INSTITUTIONAL

FRANKLIN o TEMPLETON o FIDUCIARY

Contents

ANNUAL REPORT
- --------------------------------------------------------------------------------

Fiduciary High Income Fund ...................................... 2

Performance Summary ............................................. 6

Your Fund's Expenses ............................................ 8

Financial Highlights and Statement of Investments ............... 10

Financial Statements ............................................ 15

Notes to Financial Statements ................................... 18

Report of Independent Registered Public Accounting Firm ......... 25

Board Members and Officers ...................................... 26

Proxy Voting Policies and Procedures ............................ 31

-----------------------------------------------------
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
-----------------------------------------------------

Annual Report | 1

Annual Report

Fiduciary High Income Fund

YOUR FUND'S GOAL AND PRIMARY INVESTMENTS: The Fund seeks total return by
investing mainly in debt securities offering high yield and expected total
return.

We are pleased to bring you the Fiduciary High Income Fund (the "Fund") annual
report covering the period from August 25, 2003 (the Fund's start of
performance) to July 31, 2004.

PERFORMANCE OVERVIEW

The Fund posted a 13.53% cumulative total return for the period ended July 31,
2004. The Fund performed comparably to its benchmark, the CSFB High Yield Index
- - Developed Countries Only 1, which returned 13.62% during the same period.

ECONOMIC AND MARKET OVERVIEW

1. Source: Standard & Poor's Micropal. CSFB High Yield Index-Developed Countries
Only is designed to mirror the investible universe of the U.S. dollar
denominated high yield debt market.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL VALUE, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 11.

2 | Annual Report

- --------------------------------------------------------------------------------
SECTOR ALLOCATION
As a percentage of Total Net Assets on 7/31/04

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Corporate Bonds .......................... 96.2%
Preferred Stocks ......................... 1.4%
Cash Equivalents and Other Assets ........ 2.4%
- --------------------------------------------------------------------------------

As expected, the Federal Open Market Committee raised its target interest rate
by 25 basis points at its meeting in June. However, signs of the economy cooling
appeared as June data showed that employment, retail sales, industrial
production, and housing construction all softened from earlier robust levels.
Initial estimates by the Commerce Department showed that U.S. gross domestic
product grew 2.8% for the second quarter, a sharp slowdown from the 4.5% rate of
growth for the first quarter. However, Federal Reserve Chairman Alan Greenspan
said that he believed the June slowdown was merely a temporary soft patch for
the economy that will prove to be short-lived. Consequently, at period end
market expectations remained for the Fed to continue its plans for measured
increases in its short-term target interest rate for the balance of 2004.
Although experiencing a fair degree of volatility during the period, for the
twelve-month period ending July 31, 2004, the yield on the benchmark 10-year
Treasury closed at 4.5%, up only 1 basis point from where it was one year prior,
as intermediate-term interest rates had already experienced a meaningful upward
adjustment during early summer of 2003. However, the yield curve did flatten
dramatically, as rates increased by 94 basis points at the two-year maturity.

INVESTMENT STRATEGY

Yield and expected return are the primary criteria used by the manager in
selecting securities. It performs independent analysis of the corporate debt
securities being considered for the Fund's portfolio, rather than relying
principally on the ratings assigned by ratings agencies. In its analysis, the
manager considers a variety of

Annual Report | 3

factors, including: a security's relative value based on such factors as
anticipated cash flow, interest or dividend coverage, asset coverage, and
earnings prospects; the experience and strength of the company's management; the
company's sensitivity to changes in interest rates and business conditions; the
company's debt maturity schedules and borrowing requirements; and the company's
changing financial condition and market recognition of the change. The manager
focuses primarily on individual securities but also considers sectors.

MANAGER'S DISCUSSION

During the reporting period, high yield bonds posted positive total return
performance, outperforming most other fixed income sectors. In terms of
fundamental drivers for this performance, the continuation of the positive
corporate earnings trend and declining default rates led to strengthening credit
profiles for many high yield issuers. As a result, yield spread levels over
Treasuries in the high yield market, as measured by the CSFB High Yield
Index-Developed Countries Only, declined from 5.9% at the end of August 2003 to
4.5% at period end. In terms of relative performance versus its benchmark, the
Fund's performance was positively impacted by individual security selection.
Performance was negatively impacted by the Fund's initial investment ramp-up
phase during a period of positive market returns, as well as the Fund's exposure
in certain industries relative to the benchmark.

Of note, excluding a few outliers, the range of return performance among
industry sectors over the past year was relatively narrow when compared to
divergences experienced over the past several years, reducing the impact from
industry positioning. That being said, the Fund benefited from its overweighted
positioning in the chemicals sector, which was buoyed by a more optimistic
outlook for improving demand dynamics. In particular, the Fund's positions in
Huntsman International, a global manufacturer and marketer of specialty and
commodity chemicals, and IMC Global, a producer and marketer of concentrated
phosphates and potash crop nutrients, were solid performers during the period.
The IMC Global bonds were sold during the period following a merger announcement
with a subsidiary of Cargill. On the back of the strength in economy, the Fund's
exposure to the industrial sector2 was a positive influence on relative return
performance. For example, the Fund's holding in CNH Global, which manufactures
and distributes agricultural and construction equipment, benefited from the
increasing demand for its end products. In other sectors, our holding in the
bonds of Ispat Inland, a steel manufacturer, provided positive performance since
their purchase as supply/demand dynamics and pricing levels in the steel market
have been driving strong operating results for participants in this industry.

INDUSTRY BREAKDOWN
Based on Total Net Assets
as of 7/31/04

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Media 14.1%
Hotels, Restaurants & Leisure 8.4%
Multi-Utilities & Unregulated Power 7.3%
Wireless Telecommunication Services 6.4%
Diversified Telecommunication Services 6.4%
Chemicals 5.6%
Metals & Mining 4.4%
Machinery 4.3%
Health Care Providers & Services 4.0%
Oil & Gas 3.7%
Electronic Equipment & Instruments 3.1%
Energy Equipment & Services 3.0%
Paper & Forest Products 3.0%
Household Durables 2.9%
Commercial Services & Supplies 2.9%
Food & Staples Retailing 2.8%
Other 15.3%
Short Term Investments & Other Net Assets 2.4%

2. The industrial sector comprises commercial services and supplies, machinery,
and electronic equipment and instruments in the SOI.

4 | Annual Report

The Fund's lack of exposure to the restaurant and finance sectors, albeit
relatively small components of the overall high yield market, dampened the
Fund's relative returns given the strong performance from those two industries
during the period. Finally, two of our wireless communications holdings, Dobson
Communications and Triton PCS, were negatively impacted by weaker-than-expected
operating results as competition continues to increase at the same time that new
subscriber penetration gains have slowed due to the maturation of that market.

CONCLUSION

We thank you for your continued participation and look forward to serving your
investment needs.

Sincerely,

[PHOTO OMITTED]
/S/Michael Materasso
Michael Materasso
Executive Vice President
Portfolio Manager
Fiduciary Trust Company International

[PHOTO OMITTED]
/S/Michael Rohwetter
Michael Rohwetter
Senior Vice President
Portfolio Manager
Fiduciary Trust Company International

[PHOTO OMITTED]
/S/Warren Keyser
Warren Keyser
Senior Vice President
Fiduciary Trust Company International

TOP 10 HOLDINGS ON 7/31/04
- --------------------------------------
% OF TOTAL
NET ASSETS
- --------------------------------------
Williams Cos. Inc. 2.30%
OIL & GAS
- --------------------------------------
Calpine Corp. 1.60%
MULTI-UTILITIES & UNREGULATED POWER
- --------------------------------------
Georgia Pacific Corp. 1.60%
PAPER & FOREST PRODUCTS
- --------------------------------------
Fimep SA 1.60%
ELECTRONIC EQUIPMENT & INSTRUMENTS
- --------------------------------------
TRW Automotive Inc. 1.60%
AUTO COMPONENTS
- --------------------------------------
Dex Media West LLC 1.50%
MEDIA
- --------------------------------------
Century Aluminum Co. 1.50%
METALS & MINING
- --------------------------------------
DIRECTV Holdings/Finance 1.50%
MEDIA
- --------------------------------------
D.R. Horton Inc. 1.50%
HOUSEHOLD DURABLES
- --------------------------------------
Laidlaw International Inc. 1.50%
ROAD & RAIL
- --------------------------------------

Annual Report | 5

Performance Summary as of 7/31/04

PERFORMANCE
Period ended 7/31/04

- --------------------------------------------------------------------------------------------
CUMULATIVE TOTAL
SIX-MONTH RETURN SINCE
CUMULATIVE TOTAL INCEPTION 1,2
RETURN 1,2 (8/25/03)
- --------------------------------------------------------------------------------------------

FIDUCIARY HIGH INCOME FUND 1.21% 13.53%
- --------------------------------------------------------------------------------------------
CSFB HIGH YIELD INDEX - DEVELOPED COUNTRIES ONLY 3 1.69% 13.61%
- --------------------------------------------------------------------------------------------

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT GUARANTEE
FUTURE RESULTS. ONGOING MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM
PERFORMANCE; MORE RECENT RETURNS MAY DIFFER FROM THOSE SHOWN. SINCE MARKETS CAN
GO DOWN AS WELL AS UP, INVESTMENT RETURN AND PRINCIPAL WILL FLUCTUATE WITH
MARKET CONDITIONS, AND YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES.

Bonds and other debt obligations are affected by changes in interest rates and
the creditworthiness of their issuers. High yield, lower-rated (junk) bonds
generally have greater price swings and higher default risks than higher rated
bonds. Special risks are associated with foreign investing, including currency
fluctuations, economic instability, regulatory and political developments.
Derivatives involved costs, may be volatile, and may involve a small investment
relative to the risk assumed. Please see the Fund's prospectus for more
information.

6 | Annual Report

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT2

The graph below illustrates the hypothetical investment of $10,000 in Fiduciary
High Income Fund from August 25, 2003 (start of performance) to July 31, 2004,
compared with the CSFB High Yield Index - Developed Countries Only. 3

(8/25/03-7/31/04)

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Fiduciary High CSFB HY - Developed
Income Fund Countries Only Index
8/25/03 $10,000 $10,000
8/31/03 $10,080 $10,022
9/30/03 $10,344 $10,299
10/31/03 $10,559 $10,512
11/30/03 $10,732 $10,653
12/31/03 $10,986 $10,902
1/31/04 $11,216 $11,114
2/29/04 $11,197 $11,112
3/31/04 $11,261 $11,178
4/30/04 $11,199 $11,167
5/31/04 $10,998 $10,996
6/30/04 $11,160 $11,163
7/31/04 $11,353 $11,302

ENDNOTES

1. Cumulative total return represents the change in value of an investment over
the periods indicated. Since the Fund has existed for less than one year,
average annual returns are not provided.
2. For the fiscal period ended July 31, 2004, the manager and administrator had
agreed in advance to waive or reduce their respective fees and to assume as
their own expenses certain expenses otherwise payable by the Fund. With this
reduction the Fund paid no management or administration fees and net annual Fund
operating expenses were 0.50%. Without this waiver or reduction, total return
would have been lower. After July 31, 2004, the manager and administrator may
end this arrangement at any time upon notice to the Fund's Board of Trustees.
3. Source: Standard & Poor's Micropal. CSFB High Yield Index - Developed
Countries Only is designed to mirror the investible universe of the U.S. dollar
denominated high yield debt market.

Annual Report | 7

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.

ACTUAL 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 A TOTAL ASSET VALUE OF
$8,600, 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 expenses paid for this period were $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

8 | Annual Report

Your Fund's Expenses (CONTINUED)

- ------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE VALUE PERIOD*
1/31/04 7/31/04 1/31/04-7/31/04
- ------------------------------------------------------------------------------------------------------

Actual $1,000.00 $1,012.10 $2.50
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,022.38 $2.51
- ------------------------------------------------------------------------------------------------------

*Expenses are equal to the Fund's annualized expense ratio of 0.50% multiplied
by the average account value over the period, multiplied by 182/366 to reflect
the one-half year period.

Annual Report | 9

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FIDUCIARY HIGH INCOME FUND

------------
PERIOD ENDED
JULY 31,
2004 C
------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period ............................ $10.00
------------
Income from investment operations:

Net investment income a ........................................ .72

Net realized and unrealized gains (losses) ..................... .61
------------
Total from investment operations ................................ 1.33
------------
Less distributions from:

Net investment income .......................................... (.77)

Net realized gains ............................................. (.05)
------------
Total distributions ............................................. (.82)
------------
Net asset value, end of period .................................. $10.51
------------

Total return b .................................................. 13.53%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............................... $7,337

Ratios to average net assets:

Expenses ....................................................... 1.36%d

Expenses net of waiver and payments by affiliate ............... .50%d

Net investment income (loss) ................................... 7.33%d

Portfolio turnover rate ......................................... 82.00%

a Based on average daily shares outstanding.
b Total return is not annualized for periods less than one year.
c For the period August 25, 2003 (commencement date) to July 31, 2004.
d Annualized.

10 | See notes to financial statements. | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004

- ---------------------------------------------------------------------------------------------------------------------------
FIDUCIARY HIGH INCOME FUND COUNTRY PRINCIPAL AMOUNT C VALUE
- ---------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS 96.2%
AEROSPACE & DEFENSE 1.4%

Argo-Tech Corp., senior note, 144A, 9.25%, 6/01/11 ................... United States $ 100,000 $ 105,500
-----------

AUTO COMPONENTS 1.6%
TRW Automotive Inc., senior note, 9.375%, 2/15/13 .................... United States 100,000 114,500
-----------

CHEMICALS 5.6%
BCP Caylux Holding Lux SCA, senior sub. note, 144A, 9.625%, 6/15/14 .. United States 100,000 104,750
Huntsman ICI Holdings LLC, senior disc. note, zero cpn., 12/31/09 .... United States 200,000 101,000
Nalco Co., senior sub. note, 144A, 8.875%, 11/15/13 .................. United States 100,000 105,500
Rhodia SA, senior note, 144A, 10.25%, 6/01/10 ........................ France 100,000 102,500
-----------
413,750
-----------

COMMERCIAL SERVICES & SUPPLIES 2.9%
Allied Waste North America Inc., senior secured note, 6.50%, 11/15/10 United States 100,000 99,500
JohnsonDiversey Inc., senior sub. note, B, 9.625%, 5/15/12 ........... United States 100,000 110,500
-----------
210,000
-----------

CONSTRUCTION & ENGINEERING 1.0%
URS Corp., senior note, 11.50%, 9/15/09 .............................. United States 67,000 77,050
-----------

CONTAINERS & PACKAGING 1.3%
Owens-Illinois Inc., senior note, 7.80%, 5/15/18 ..................... United States 100,000 96,750
-----------

DIVERSIFIED TELECOMMUNICATION SERVICES 6.4%
MCI Inc., senior note, 5.908%, 5/01/07 ............................... United States 27,000 26,226
MCI Inc., senior note, 6.688%, 5/01/09 ............................... United States 50,000 46,187
NTL Cable PLC, senior note, 144A, 8.75%, 4/15/14 ..................... United Kingdom 100,000 104,250
a PanAmSat Corp., senior note, 144A, 9.00%, 8/15/14 .................... United States 100,000 100,000
Qwest Communications International Inc., senior note, 144A, 7.50%,
2/15/14 ............................................................ United States 100,000 94,000
Time Warner Telecom Holding, senior note, 144A, 9.25%, 2/15/14 ....... United States 100,000 96,000
-----------
466,663
-----------

ELECTRIC UTILITIES 1.5%
Centerpoint Energy Inc., senior note, B, 7.25%, 9/01/10 .............. United States 100,000 109,787
-----------

ELECTRONIC EQUIPMENT & INSTRUMENTS 3.1%
Fimep SA, senior note, 10.50%, 2/15/13 ............................... France 100,000 115,500
Solectron Corp., senior note, 9.625%, 2/15/09 ........................ United States 100,000 110,000
-----------
225,500
-----------

ENERGY EQUIPMENT & SERVICES 3.0%
Grant Prideco Escrow, senior note, 9.00%, 12/15/09 ................... United States 100,000 110,500
Hanover Equipment Trust 01, senior secured note, B, 8.75%, 9/01/11 ... United States 100,000 108,250
-----------
218,750
-----------

FOOD & STAPLES RETAILING 2.8%
Rite Aid Corp., senior note, 9.25%, 6/01/13 .......................... United States 100,000 105,250
Stater Brothers Holdings, senior note, 144A, 8.125%, 6/15/12 ......... United States 100,000 102,750
-----------
208,000
-----------

Annual Report | 11

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

a Smithfield Foods Inc., senior notes, 144A, 7.00%, 8/01/11 ............ United States $ 100,000 $ 102,125
-----------

HEALTH CARE PROVIDERS & SERVICES 2.6%
Medcath Holdings Corp., senior note, 144A, 9.875%, 7/15/12 ........... United States 100,000 102,250
Tenet Healthcare Corp., senior note, 6.375%, 12/01/11 ................ United States 100,000 89,750
-----------
192,000
-----------

HOTELS, RESTAURANTS & LEISURE 8.4%
Boyd Gaming Corp., senior sub. note, 144A, 6.75%, 4/15/14 ............ United States 100,000 96,625
Host Marriott LP, senior note, 9.25%, 10/01/07 ....................... United States 100,000 110,750
Park Place Entertainment Corp., senior sub. note, 8.125%, 5/15/11 .... United States 100,000 110,875
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 ....... United States 100,000 100,000
Royal Caribbean Cruises Ltd., senior deb., 7.25%, 3/15/18 ............ United States 100,000 99,000
Station Casinos Inc., senior sub. note, 6.875%, 3/01/16 .............. United States 100,000 97,750
-----------
615,000
-----------

HOUSEHOLD DURABLES 2.9%
D.R. Horton Inc., senior note, 7.875%, 8/15/11 ....................... United States 100,000 112,000
Simmons Co., senior sub. note, 144A, 7.875%, 1/15/14 ................. United States 100,000 102,000
-----------
214,000
-----------

IT SERVICES 1.4%
UGS Corp., senior sub. note, 144A, 10.00%, 6/01/12 ................... United States 100,000 106,500
-----------

LEISURE EQUIPMENT & PRODUCTS 1.4%
True Temper Sports Inc., senior sub. note, 8.375%, 9/15/11 ........... United States 100,000 101,500
-----------

MACHINERY 4.3%
Case New Holland Inc., senior note, 144A, 9.25%, 8/01/11 ............. United States 100,000 108,750
Invensys PLC, senior note, 144A, 9.875%, 3/15/11 ..................... United Kingdom 100,000 101,250
Milacron Escrow Corp., senior secured note, 144A, 11.50%, 5/15/11 .... United States 100,000 104,500
-----------
314,500
-----------

MEDIA 14.1%
Advanstar Communications Inc., senior secured note, 10.75%, 8/15/10 .. United States 100,000 111,000
CanWest Media Inc., senior note, B, 7.625%, 4/15/13 .................. Canada 100,000 104,750
Charter Communications Holdings II, senior note, 10.25%, 9/15/10 ..... United States 100,000 101,250
CSC Holdings Inc., senior deb., 7.625%, 7/15/18 ...................... United States 100,000 95,250
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 ................ United States 100,000 113,250
DIRECTV Holdings/Finance, senior note, 8.375%, 3/15/13 ............... United States 100,000 112,500
Emmis Operating Co., senior sub. note, 144A, 6.875%, 5/15/12 ......... United States 100,000 98,250
Lamar Media Corp., senior sub. note, 7.25%, 1/01/13 .................. United States 100,000 103,750
Lin Television Corp., senior sub. note, 6.50%, 5/15/13 ............... United States 100,000 97,500
Quebecor Media Inc., senior disc. note, zero cpn. to 7/15/06, 13.75%
thereafter, 7/15/11 ................................................ Canada 100,000 94,250
-----------
1,031,750
-----------

12 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

Century Aluminum Co., first mortgage, senior secured note, 11.75%,
4/15/08 ............................................................ United States $ 100,000 $ 112,625
Ispat Inland ULC, senior secured note, 144A, 9.75%, 4/01/14 .......... United States 100,000 103,750
Peabody Energy Corp., senior note, B, 6.875%, 3/15/13 ................ United States 100,000 103,500
-----------
319,875
-----------

MULTI-UTILITIES & UNREGULATED POWER 7.3%
AES Corp., senior secured note, 144A, 9.00%, 5/15/15 ................. United States 100,000 109,750
Allegheny Energy Supply Co. LLC, 144A, 8.25%, 4/15/12 ................ United States 100,000 101,000
Calpine Corp., senior secured note, 144A, 8.75%, 7/15/13 ............. United States 150,000 120,750
Dynegy Holdings Inc., senior note, 8.75%, 2/15/12 .................... United States 100,000 99,250
Midwest Generation LLC, senior secured note, 144A, 8.75%, 5/01/34 .... United States 100,000 106,500
-----------
537,250
-----------

OFFICE ELECTRONICS 1.4%
Xerox Corp., senior note, 7.125%, 6/15/10 ............................ United States 100,000 103,000
-----------

OIL & GAS 3.7%
Plains Exploration & Production Co., senior note, 144A, 7.125%,
6/15/14 ............................................................. United States 100,000 103,250
Williams Cos. Inc., senior note, 8.625%, 6/01/10 ..................... United States 150,000 169,125
-----------
272,375
-----------

PAPER & FOREST PRODUCTS 3.0%
Georgia-Pacific Corp., senior note, 9.375%, 2/01/13 .................. United States 100,000 116,500
Jefferson Smurfit Corp., senior note, 7.50%, 6/01/13 ................. United States 100,000 102,000
-----------
218,500
-----------

REAL ESTATE 1.4%
Forest City Enterprises Inc., senior note, 7.625%, 6/01/15 ........... United States 100,000 101,250
-----------

ROAD & RAIL 1.5%
Laidlaw International Inc., senior note, 10.75%, 6/15/11 ............. United States 100,000 111,250
-----------

WIRELESS TELECOMMUNICATION SERVICES 6.4%
Centennial Communications Corp., senior note, 144A, 8.125%, 2/01/14 .. United States 100,000 93,250
Dobson Communications Corp., senior note, 8.875%, 10/01/13 ........... United States 100,000 76,000
Millicom International Cellular SA, senior note, 144A, 10.00%,
12/01/13 ........................................................... Luxembourg 100,000 100,500
Nextel Communications Inc., senior note, 7.375%, 8/01/15 ............. United States 100,000 105,500
Triton PCS Inc., senior note, 8.50%, 6/01/13 ......................... United States 100,000 93,500
-----------
468,750
-----------
TOTAL CORPORATE BONDS (COST $6,909,851) .............................. 7,055,875
-----------

------------
SHARES
------------
PREFERRED STOCK (COST $103,750) 1.4%
HEALTH CARE PROVIDERS & SERVICES
Fresenius Medical Care Capital Trust II, 7.875%, 2/01/08 ............. Germany 100 106,000
-----------
TOTAL LONG TERM INVESTMENTS (COST $7,013,601) ........................ 7,161,875
-----------

Annual Report | 13

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2004 (CONTINUED)

- ---------------------------------------------------------------------------------------------------------------------------
FIDUCIARY HIGH INCOME FUND COUNTRY SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
SHORT TERM INVESTMENT (COST $14,951) .2%
MONEY FUND

b Franklin Institutional Fiduciary Trust Money Market Portfolio ........ United States 14,951 $ 14,951
-----------
TOTAL INVESTMENTS (COST $7,028,552) 97.8% ............................ 7,176,826
OTHER ASSETS, LESS LIABILITIES 2.2% .................................. 160,243
-----------
NET ASSETS 100.0% .................................................... $7,337,069
-----------

<FN>
a See Note 1(b) regarding securities purchased on a delayed delivery basis.
b See Note 7 regarding investments in Franklin Institutional Fiduciary Trust Money Market Portfolio.
c The principal amount is stated in U.S. dollars unless otherwise indicated.
</FN>

14 | See notes to financial statements. | Annual Report

Franklin Global Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
July 31, 2004

-------------
FIDUCIARY
HIGH INCOME
FUND
-------------
Assets:
Investments in securities:

Cost - Unaffiliated issuers ....................................... $ 7,013,601
Cost - Sweep money fund (Note 7) .................................. 14,951
-------------
Value - Unaffiliated issuers ...................................... 7,161,875
Value - Sweep money fund (Note 7) ................................. 14,951
Receivables:
Investment securities sold ........................................ 229,560
Interest .......................................................... 156,981
Affiliates ........................................................ 24,336
Offering costs (Note 1(e)) ......................................... 1,326
-------------
Total assets .................................................. 7,589,029
-------------
Liabilities:
Payables:
Investment securities purchased ................................... 200,000
Distributions to shareholders ...................................... 47,192
Other liabilities .................................................. 4,768
-------------
Total liabilities ............................................. 251,960
-------------
Net assets, at value ......................................... $ 7,337,069
-------------
Net assets consist of:
Distributions in excess of net investment income ................... $ (14,259)
Net unrealized appreciation (depreciation) ......................... 148,274
Accumulated net realized gain (loss) ............................... 232,704
Capital shares ..................................................... 6,970,350
-------------
Net assets, at value ......................................... $ 7,337,069
-------------
Shares outstanding .................................................. 698,111
-------------
Net asset value and maximum offering price per share ................ $10.51
-------------

Annual Report | See notes to financial statements. | 15

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the period ended July 31, 2004 a

-----------
FIDUCIARY
HIGH INCOME
FUND
-----------
Investment income:
Dividends

Unaffiliated issuers ...................................................... $ 7,853
Sweep money fund (Note 7) ................................................. 1,131
Interest ................................................................... 529,557
-----------
Total investment income ............................................... 538,541
-----------
Expenses:
Management fees (Note 3) ................................................... 20,657
Administrative fees (Note 3) ............................................... 13,772
Transfer agent fees (Note 3) ............................................... 184
Custodian fees (Note 4) .................................................... 204
Reports to shareholders .................................................... 5,311
Registration and filing fees ............................................... 9,669
Offering costs (Note 1(e)) ................................................. 20,666
Professional fees .......................................................... 17,793
Other ...................................................................... 5,008
-----------
Total expenses ........................................................ 93,264
Expenses waived/paid by affiliate (Note 3) ............................ (58,768)
-----------
Net expenses ......................................................... 34,496
-----------
Net investment income ............................................... 504,045
-----------
Realized and unrealized gains (losses):
Net realized gain (loss) from investments .................................. 272,791
Net unrealized appreciation (depreciation) on investments .................. 148,274
-----------
Net realized and unrealized gain (loss) ..................................... 421,065
-----------
Net increase (decrease) in net assets resulting from operations ............. $ 925,110
-----------

<FN>
a For the period August 25, 2003 (commencement date) to July 31, 2004.
</FN>

16 | See notes to financial statements. | Annual Report

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF CHANGES IN NET ASSETS
for the period ended July 31, 2004 a

-------------
FIDUCIARY
HIGH INCOME
FUND
-------------
Increase (decrease) in net assets:
Operations:

Net investment income ...................................................... $ 504,045
Net realized gain (loss) from investments .................................. 272,791
Net unrealized appreciation (depreciation) on investments .................. 148,274
-------------
Net increase (decrease) in net assets resulting from operations ........ 925,110
Distributions to shareholders from:
Net investment income ...................................................... (537,261)
Net realized gains ......................................................... (33,283)
-------------
Total distributions to shareholders ......................................... (570,544)
Capital share transactions (Note 2) ......................................... 6,982,503
-------------
Net increase (decrease) in net assets .................................. 7,337,069
Net assets:
Beginning of period ......................................................... --
-------------
End of period ............................................................... $ 7,337,069
-------------
Distributions in excess of net investment income:
End of period ............................................................... $ (14,259)
-------------

<FN>
a For the period August 25, 2003 (commencement date) to July 31, 2004.
</FN>

Annual Report | See notes to financial statements. | 17

Franklin Global Trust
NOTES TO FINANCIAL STATEMENTS

FIDUCIARY HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Global Trust (the Trust) is registered under the Investment Company Act
of 1940 as an open-end investment company, consisting of seven separate series.
Fiduciary High Income Fund (the Fund), included in this report, is diversified.
The financial statements of the remaining funds in the series are presented
separately. The Fund's investment goal is total return.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

Securities listed or traded on a recognized national exchange are valued at the
last reported sales price. Securities listed or traded on NASDAQ are valued at
their official closing price. Debt securities, other over-the-counter securities
and listed securities for which no sale is reported are valued within the range
of the latest quoted bid and asked prices by independent pricing services or
recognized dealers in such securities. Foreign securities are valued at the
close of trading of the foreign exchange or the NYSE, whichever is earlier. If
events occurs that materially affect the values of securities after the prices
are determined, but prior to 4:00 p.m. Eastern time or the close of trading on
the NYSE, whichever is earlier, or if market quotations are deemed not readily
available or reliable, the securities will be valued at fair value. Investments
in open-end mutual funds are valued at the closing net asset value. All security
valuation procedures are approved by the Board of Trustees.

B. SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS

The Fund may purchase securities on a when-issued or delayed delivery basis,
with payment and delivery scheduled for a future date. These transactions are
subject to market fluctuations and are subject to the risk that the value at
delivery may be more or less than the trade date purchase price. Although the
Fund will generally purchase these securities with the intention of holding the
securities, it may sell the securities before the settlement date. Sufficient
assets have been segregated for these securities.

C. INCOME TAXES

No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute substantially all of its taxable income. Fund distributions to
shareholders are determined on a tax basis and may differ from net investment
income and realized gains for financial reporting purposes.

18 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FIDUCIARY HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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. Dividend income and distributions to shareholders are recorded on
the ex-dividend date.

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

E. OFFERING COSTS

Offering costs are amortized on a straight line basis over twelve months.

F. ACCOUNTING ESTIMATES

G. REDEMPTION FEES

Effective June 1, 2004, redemptions and exchanges of the Fund's shares held five
trading days or less may be subject to the Fund's redemption fee, which is 2% of
the amount redeemed. Such fees are retained by the Fund and accounted for as
additional paid-in capital. There were no redemption fees for the period.

H. GUARANTEES AND INDEMNIFICATIONS

Annual Report | 19

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FIDUCIARY HIGH INCOME FUND

2. SHARES OF BENEFICIAL INTEREST

At July 31, 2004, there were an unlimited number of shares authorized ($.01 par
value). Transactions in the Fund's shares were as follows:

----------------------
PERIOD ENDED
JULY 31, 2004 A
----------------------
SHARES AMOUNT
----------------------

Shares sold ..................................................... 711,372 $7,118,366
Shares issued in reinvestment of distributions .................. 3,124 33,283
Shares redeemed ................................................. (16,385) (169,146)
----------------------
Net increase (decrease) ......................................... 698,111 $6,982,503
----------------------

<FN>
a For the period August 25, 2003 (commencement date) to July 31, 2004.
</FN>

3. TRANSACTIONS WITH AFFILIATES

CERTAIN OFFICERS AND TRUSTEES OF THE FUND ARE ALSO OFFICERS AND/OR DIRECTORS OF
THE FOLLOWING ENTITIES:

- -----------------------------------------------------------------------------------------
ENTITY AFFILIATION
- -----------------------------------------------------------------------------------------

Fiduciary International Inc. (Fiduciary) Investment manager
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

The Fund pays an investment management fee to Fiduciary of .30% per year of the
average daily net assets of the Fund. Under a subadvisory agreement, Advisers,
an affiliate of Fiduciary, provides subadvisory services to the Fund and
receives from Fiduciary fees based on the average daily net assets of the Fund.

The Fund pays an administrative fee to FT Services of .20% per year of the
average daily net assets of the Fund.

FT Services agreed in advance to voluntarily waive administrative fees.
Additionally, Fiduciary and Advisers agreed in advance to voluntarily waive
management fees and assume payment of other expenses, through July 31, 2004, as
noted in the Statement of Operations. Total expenses waived/paid by FT Services,
Fiduciary and Advisers are not subject to reimbursement by the Fund subsequent
to the Fund's fiscal year end.

A distribution plan is included in the management agreement of the Fund. No
payments were made by the Fund as a result of the plan.

The Fund paid transfer agent fees of $184, of which $27 was paid to Investor
Services.

20 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FIDUCIARY HIGH INCOME 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 period ended July 31, 2004, there were
no credits earned.

5. INCOME TAXES

The tax character of distributions paid during the period ended July 31, 2004
was as follows:

----------
2004
----------
Distributions paid from ordinary income ................... $570,544

Net investment income (loss) differs for financial statement and tax purposes
primarily due to differing treatments of bond discounts and premiums and
offering costs.

Net realized gains/losses differ for financial statement and tax purposes
primarily due to differing treatment of bond discounts and premiums.

At July 31, 2004, the cost of investments, net unrealized appreciation
(depreciation) and undistributed ordinary income for income tax purposes were as
follows:

Cost of investments ...................................... $ 7,040,779
------------
Unrealized appreciation .................................. $ 231,540
Unrealized depreciation .................................. (95,493)
------------
Net unrealized appreciation (depreciation) ............... $ 136,047
------------
Distributable earnings-undistributed ordinary income ..... $ 277,862
------------

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short-term securities) for the
period ended July 31, 2004 aggregated $12,055,797 and $5,333,308, respectively.

7. INVESTMENTS IN FRANKLIN INSTITUTIONAL FIDUCIARY TRUST MONEY MARKET PORTFOLIO

The Fund may invest in the Franklin Institutional Fiduciary Trust Money Market
Portfolio (the Sweep Money Fund), an open-end investment company managed by
Advisers. Management fees paid by the Fund are reduced on assets invested in the
Sweep Money Fund, in an amount not to exceed the management fees paid by the
Sweep Money Fund.

Annual Report | 21

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FIDUCIARY HIGH INCOME FUND

8. CONCENTRATIONS

The Fund has a concentration of a shareholder holding a significant percentage
of shares outstanding. Investment activities of this shareholder could have a
material impact on the Fund. At July 31, 2004, there was one unaffiliated
shareholder holding 100% of the Fund's outstanding shares.

9. CREDIT RISK
The Fund has 99.8% of its portfolio invested in below investment grade and
comparable quality unrated high yield securities, which tend to be more
sensitive to economic conditions than higher rated securities. The risk of loss
due to default by the issuer may be significantly greater for the holders of
high yielding securities because such securities are generally unsecured and are
often subordinated to other creditors of the issuer.

10. REGULATORY MATTERS

22 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FIDUCIARY HIGH INCOME FUND

10. REGULATORY MATTERS (CONTINUED)

The Staff of the SEC has also informed the Company that it is considering
recommending a civil action or proceeding against Franklin Advisers, Inc. and
the Fund's principal underwriter concerning payments to securities dealers who
sell fund shares (commonly referred to as "revenue sharing"). The staff of the
California Attorney General's Office (CAGO) also has advised the Company that it
is authorized to bring a civil action against Franklin Resources, Inc. and the
Fund's principal underwriter arising from the same events. Even though the
Company currently believes that the charges the SEC staff and CAGO staff are
contemplating are unwarranted, it also believes that it is in the best interest
of the Company and fund shareholders to resolve these issues voluntarily, to the
extent the Company can reasonably do so.

Annual Report | 23

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FIDUCIARY HIGH INCOME FUND

10. REGULATORY MATTERS (CONTINUED)

OTHER LEGAL PROCEEDINGS (CONTINUED)
In addition, the Company and certain of its subsidiaries, as well as certain
current and former officers, employees, and directors have been named in
multiple lawsuits alleging violations of various securities laws and pendent
state law claims relating to the disclosure of directed brokerage payments
and/or payment of allegedly excessive commissions and advisory fees. These
lawsuits are styled as class actions and derivative actions.

The Company's management strongly believes that the claims made in each of these
lawsuits are without merit and intends to vigorously defend against them.

24 | Annual Report

Franklin Global Trust

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

FIDUCIARY HIGH INCOME FUND

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FIDUCIARY HIGH INCOME 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 Fiduciary High Income Fund
(hereafter referred to as the "Fund") (one of the funds constituting the
Franklin Global Trust) at July 31, 2004, and the results of its operations, the
changes in its net assets and the financial highlights for the period August 25,
2003 (commencement of operations) through July 31, 2004, 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 audit. We conducted our audit 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
audit, which included confirmation of securities at July 31, 2004 by
correspondence with the custodian, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 9, 2004

Annual Report | 25

Board Members and Officers

INDEPENDENT BOARD MEMBERS

FRANK H. ABBOTT, III (83) Trustee Since 2000 111 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President and Director, Abbott Corporation (an investment company).
- ------------------------------------------------------------------------------------------------------------------------------------
HARRIS J. ASHTON (72) Trustee Since 2000 140 Director, Bar-S Foods (meat
One Franklin Parkway packing 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 (76) Trustee Since 2000 49 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
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.
- ------------------------------------------------------------------------------------------------------------------------------------
S. JOSEPH FORTUNATO (72) Trustee Since 2000 141 None
One Franklin Parkway
San Mateo, CA 94403-1906

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).
- ------------------------------------------------------------------------------------------------------------------------------------

26 | Annual Report

FRANK W.T. LAHAYE (75) Trustee Since 2000 113 Director, The California Center for
One Franklin Parkway Land Recycling (redevelopment).
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
General Partner, Las Olas L.P. (Asset Management); and FORMERLY, Chairman, Peregrine Venture Management Company (venture capital).
- ------------------------------------------------------------------------------------------------------------------------------------
GORDON S. MACKLIN (76) Trustee Since 2000 140 Director, White Mountains Insurance
One Franklin Parkway Group, Ltd. (holding company); Martek
San Mateo, CA 94403-1906 Biosciences Corporation; MedImmune,
Inc. (biotechnology); and
Overstock.com (Internet services);
and FORMERLY, Director, MCI
Communication Corporation
(subsequently known as MCI WorldCom,
Inc. and WorldCom, Inc.)
(communications services) (1988-2002)
and Spacehab, Inc. (aerospace
services) (1994-2003).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Deputy Chairman, White Mountains Insurance Group, Ltd. (holding company); and FORMERLY, Chairman, White River Corporation
(financial services) (1993-1998) and Hambrecht & Quist Group (investment banking) (1987-1992); and President, National
Association of Securities Dealers, Inc. (1970-1987).
- ------------------------------------------------------------------------------------------------------------------------------------

INTERESTED BOARD MEMBERS AND OFFICERS

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.; Director, Franklin Investment Advisory Services,
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 49 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
**CHARLES B. JOHNSON (71) Trustee and Since 2000 140 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.; Director, Fiduciary Trust Company International; and officer and/or director or trustee, as the case may be,
of some of the other subsidiaries of Franklin Resources, Inc. and of 46 of the investment companies in Franklin Templeton
Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 27

**RUPERT H. JOHNSON, JR. (63) Trustee, Trustee and 123 None
One Franklin Parkway President and President since
San Mateo, CA 94403-1906 Chief 2000 and Chief
Executive Executive Officer
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. and Franklin Investment Advisory Services, 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 49 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JAMES M. DAVIS (52) Chief Since July 2004 Not Applicable None
One Franklin Parkway Compliance
San Mateo, CA 94403-1906 Officer

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 51 of the investment companies in Franklin Templeton Investments; Director, Global Compliance, Franklin Resources,
Inc., and FORMERLY, Director of Compliance, Franklin Resources, Inc. (1994-2001).
- ------------------------------------------------------------------------------------------------------------------------------------
LAURA FERGERSON (42) Treasurer Since July 2004 Not Applicable None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 34 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).
- ------------------------------------------------------------------------------------------------------------------------------------
MARTIN L. FLANAGAN (44) Vice President Since 2000 5 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Co-President and Chief Executive Officer, Franklin Resources, Inc.; Senior Vice President and Chief Financial Officer, Franklin
Mutual Advisers, LLC; Executive Vice President, Chief Financial Officer and Director, Templeton Worldwide, Inc.; Executive Vice
President and Chief Operating Officer, Templeton Investment Counsel, LLC; President and Director, Franklin Advisers, Inc.;
Executive Vice President, Franklin Investment Advisory Services, Inc. and Franklin Templeton Investor Services, LLC; Chief
Financial Officer, Franklin Advisory Services, LLC; Chairman, Franklin Templeton 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 49 of the investment companies
in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JIMMY D. GAMBILL (56) Senior Vice Since 2002 Not Applicable None
500 East Broward Blvd. President and
Suite 2100 Chief
Fort Lauderdale, FL 33394-3091 Executive
Officer -
Finance and
Administration

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President, Franklin Templeton Services, LLC; Senior Vice President, Templeton Worldwide, Inc.; and officer of 51 of the
investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

28 | Annual Report

DAVID P. GOSS (57) Vice President Since 2000 Not Applicable None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Associate General Counsel, Franklin Resources, Inc.; officer and director of one of the subsidiaries of Franklin Resources, Inc.;
officer of 51 of the investment companies in Franklin Templeton Investments; and FORMERLY, President, Chief Executive Officer and
Director, Property Resources Equity Trust (until 1999) and Franklin Select Realty Trust (until 2000).
- ------------------------------------------------------------------------------------------------------------------------------------
BARBARA J. GREEN (56) Vice President Since 2000 Not Applicable None
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,
Inc., 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 51
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).
- ------------------------------------------------------------------------------------------------------------------------------------
EDWARD B. JAMIESON (56) Vice President Since 2000 Not Applicable None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice Chairman, Chief Banking Officer and Director, Fiduciary Trust Company International; and officer and/or director, as the case
may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 48 of the investment companies in Franklin Templeton
Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
CHRISTOPHER J. MOLUMPHY (42) Vice President Since 2000 Not Applicable None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Executive Vice President, Franklin Advisers, Inc.; and officer of six of the investment companies in Franklin Templeton
Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 29

MURRAY L. SIMPSON (67) Vice President Since 2000 Not Applicable None
One Franklin Parkway and Secretary
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Executive Vice President and General Counsel, Franklin Resources, Inc.; officer and/or director, as the case may be, of some of
the subsidiaries of Franklin Resources, Inc. and of 51 of the investment companies in Franklin Templeton Investments; and
FORMERLY, Chief Executive Officer and Managing Director, Templeton Franklin Investment Services (Asia) Limited (until 2000); and
Director, Templeton Asset Management Ltd. (until 1999).
- ------------------------------------------------------------------------------------------------------------------------------------
GALEN G. VETTER (52) Chief Financial Since May 2004 Not Applicable None
500 East Broward Blvd. Officer
Suite 2100
Fort Lauderdale, FL 33394-3091

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Officer of 51 of the investment companies in Franklin Templeton Investments; Senior Vice President, Franklin Templeton Services,
LLC; and FORMERLY, Managing Director, RSM McGladrey, Inc.; and Partner, McGladrey & Pullen, LLP.
- ------------------------------------------------------------------------------------------------------------------------------------

THE STATEMENT OF ADDITIONAL INFORMATION (SAI) INCLUDES ADDITIONAL INFORMATION
ABOUT THE BOARD MEMBERS AND IS AVAILABLE, WITHOUT CHARGE, UPON REQUEST.
SHAREHOLDERS MAY CALL 1-800/321-8563.

30 | Annual Report

Franklin Global Trust

PROXY VOTING POLICIES AND PROCEDURES

FIDUCIARY HIGH INCOME FUND

QUARTERLY STATEMENT OF INVESTMENTS

The Fund files a complete statement of investments with the 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 | 31

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[LOGO OMITTED] FRANKLIN TEMPLETON INSTITUTIONAL
FRANKLIN[R] TEMPLETON[R] 600 Fifth Avenue
INSTITUTIONAL New York, NY 10020
FRANKLINTEMPLETONINSTITUTIONAL.COM

ANNUAL REPORT
FIDUCIARY HIGH INCOME FUND

INVESTMENT MANAGER
Fiduciary International, Inc.

DISTRIBUTOR
Franklin/Templeton Distributors, Inc.

FRANKLIN TEMPLETON INSTITUTIONAL SERVICES
1-800/321-8563

This report must be preceded or accompanied by the current Fiduciary High Income
Fund prospectus, which contains more complete information including charges,
expenses, and risk factors. Like any investment in securities, the value of the
Fund's portfolio will be subject to the risk of loss from market, currency,
economic, political, and other factors. The Fund and its investors are not
protected from such losses by the Investment Manager. Therefore, investors who
cannot accept this risk should not invest in shares of the Fund.

067A2004 09/04

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 11(A), 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 $146,965 for the fiscal year ended July 31, 2004 and $50,000
for the fiscal year ended July 31, 2003.

(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.

The aggregate 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 the their
financial statements were $48,134 for the fiscal year ended July 31, 2004 and
$0 for the fiscal year ended July 31, 2003. The services for which these
fees were paid included attestation services.

(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.

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 $90 for the fiscal year ended July 31, 2004
and $0 for the fiscal year ended July 31, 2003. 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 $99,910 for the fiscal year
ended July 31, 2004 and $0 for the fiscal year ended July 31, 2003. 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.

(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 pre-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 $148,134 for the fiscal year ended July 31,
2004 and $0 for the fiscal year ended July 31, 2003.

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

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. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers. N/A

Item 9. 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 10. 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 11. Exhibits.

(A) Code of Ethics

(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
Galen G. Vetter, 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
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 GLOBAL TRUST

By /s/Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date September 30, 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 September 30, 2004

By /s/Galen G. Vetter
Chief Financial Officer
Date September 30, 2004