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
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FRANKLIN GLOBAL TRUST
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(Exact name of registrant as specified in charter)

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

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

Registrant's telephone number, including area code: 650 312-2000
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Date of fiscal year end: 7/31
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Date of reporting period: 7/31/07
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ITEM 1. REPORTS TO STOCKHOLDERS.

[GRAPHIC OMITTED]

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[LOGO]
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FGT
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FUNDS
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ANNUAL REPORT

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JULY 31, 2007

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FIDUCIARY
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TRUST
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INTERNATIONAL
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Contents

ANNUAL REPORT

President's Message ...................................................... 1

Economic and Market Overview ............................................. 2

Fiduciary Large Capitalization Growth and Income Fund .................... 4

Fiduciary Small Capitalization Equity Fund ............................... 11

Financial Highlights and Statements of Investments ....................... 18

Financial Statements ..................................................... 26

Notes to Financial Statements ............................................ 29

Report of Independent Registered Public Accounting Firm .................. 37

Tax Designation .......................................................... 38

Meeting of Shareholders .................................................. 39

Board Members and Officers ............................................... 42

Shareholder Information .................................................. 47

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Annual Report

President's Message

Dear Shareholder:

I am pleased to present the enclosed Franklin Global Trust Funds' annual report
covering the fiscal year ended July 31, 2007. 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 the annual report.

/s/ Rupert H. Johnson

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

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NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
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Annual Report | 1

Economic and Market Overview

During the 12 months ended July 31, 2007, the U.S. economy advanced at a
moderate but uneven pace. Although gross domestic product (GDP) grew at 2.0% and
2.5% annualized rates in the third and fourth quarters of 2006 due in part to
strong domestic demand and a healthy increase in exports, the U.S. entered 2007
with a record current account deficit. Corporate profits and government spending
generally remained robust. The struggling housing market grew more fragile with
the abrupt unraveling of the subprime mortgage market. This exacerbated already
weak housing prices and an inventory glut in most of the nation's residential
real estate markets. GDP growth slowed to an annualized 0.6% rate in first
quarter 2007. In the second quarter, however, growth advanced at an estimated
annualized 4.0% rate, supported by federal defense spending, accelerating
exports and declining imports, greater business inventory investment and
increased spending for nonresidential structures.

The unemployment rate decreased from 4.8% at the beginning of the period to 4.6%
in July 2007.1 Although consumer confidence in July neared a six-year high,
consumer spending slowed toward period-end as worries about the housing slump
and high gasoline prices made individuals more cautious. After a welcome drop in
energy costs during the latter half of 2006, elevated oil prices returned in
2007, reaching a record high on July 31, in response to perceived tight supply
and high demand for oil, refinery maintenance issues, and ongoing geopolitical
tensions in the Middle East and Africa. The core Consumer Price Index (CPI),
which excludes food and energy costs, rose 2.2% for the 12 months ended July 31,
2007, which was the same as the 10-year average. 1

The Federal Reserve Board (Fed) kept the federal funds target rate at 5.25% for
the year under review. At period-end, the Fed was still more concerned with
inflation pressures than an economic slowdown. The 10-year Treasury note yield
fell from 4.99% at the beginning of the period to 4.78% on July 31, 2007.

1. Source: Bureau of Labor Statistics.

2 | Annual Report

After stock market sell-offs in late February and mid-March, markets rebounded
in the second quarter of 2007 amid generally strong first quarter corporate
earnings reports. However, volatility picked up again in July when the markets
fluctuated widely almost daily due to investor concerns about the housing
market, lending environment and mixed second quarter earnings reports. The last
full week in July was the worst in five years for many markets, and stock prices
continued to struggle until period-end. The blue chip stocks of the Dow Jones
Industrial Average posted a 12-month total return of +20.84%, the broader
Standard & Poor's 500 Index (S&P 500) returned +16.22%, and the technology-heavy
NASDAQ Composite Index returned +22.66%. 2 Materials, information technology and
telecommunications stocks performed particularly well.

2. Source: Standard & Poor's Micropal. The Dow Jones Industrial Average is price
weighted based on the average market price of 30 blue chip stocks of companies
that are generally industry leaders. 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 NASDAQ domestic and international based common type stocks
listed on The NASDAQ Stock Market. The index is market value weighted and
includes more than 3,000 companies.

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF JULY 31, 2007, THE END OF THE REPORTING PERIOD. THE INFORMATION IS NOT A
COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET, COUNTRY, INDUSTRY, SECURITY OR
FUND. STATEMENTS OF FACT ARE FROM SOURCES CONSIDERED RELIABLE.

Annual Report | 3

Fiduciary Large Capitalization
Growth and Income Fund

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 large capitalization companies with market
capitalizations of more than $5 billion, or that are within the top 50% of the
Russell 1000(R) Index, at the time of purchase. 1 The Fund invests mainly in
dividend-paying stocks, while attempting to keep taxable capital gains
distributions relatively low.

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PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN.
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We are pleased to bring you Fiduciary Large Capitalization Growth and Income
Fund's annual report for the fiscal year ended July 31, 2007.

PERFORMANCE OVERVIEW

Fiduciary Large Capitalization Growth and Income Fund delivered a cumulative
total return of +18.27% for the 12 months ended July 31, 2007. The Fund
outperformed its benchmark, the Standard & Poor's 500 Index (S&P 500), which
returned +16.22% during the same period. 2

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 employ a thematic approach to identify sectors
that may benefit from longer dynamic growth. Within these sectors, we consider
the

1. The Russell 1000 Index is market capitalization weighted and measures
performance of the 1,000 largest companies in the Russell 3000(R) Index, which
represent approximately 92% of total market capitalization of the Russell 3000
Index.

2. 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. One cannot invest
directly in an index, nor is an index representative of the Fund's portfolio.

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 19.

4 | Annual Report

basic financial and operating strength and quality of a company and company
management. The Fund, from time to time, may have significant positions in
particular sectors such as technology or industrials. We also seek to identify
companies that we believe are temporarily out of favor with investors, but have
a good intermediate- or long-term outlook.

MANAGER'S DISCUSSION

During the year under review, the Fund's outperformance relative to its
benchmark, the S&P 500, was mainly due to stock selection. On an individual
stock basis, the top three contributors to relative performance, Juniper
Networks, InBev and Komatsu, enjoyed brisk foreign business largely because of
the strong global economy. Juniper, an Internet infrastructure company, derives
approximately 55% of its revenues from overseas. Belgium-based brewery InBev
does most of its business in Europe and growing Latin American countries.
Japanese construction equipment maker Komatsu benefited from robust demand for
construction equipment, mining machinery and bulldozers worldwide.

The three greatest detractors from relative Fund returns were laboratory and
testing company Quest Diagnostics, office supply chain stores Office Depot and
integrated circuits producer Marvell Technology Group. All three companies' 2007
earnings estimates declined during the period under review and they each
experienced significantly slower earnings growth versus 2006 earnings. The
deterioration in fundamentals contributed to market underperformance. We sold
Quest and Marvell but retained Office Depot as of period-end.

On a sector basis, the Fund's relative returns during the 12-month period
benefited most from consumer staples sector investments, particularly in foreign
holdings such as InBev and Tesco.3 Additionally, our industrials sector
overweighting and stock selection boosted the Fund's relative performance as our
sector investments outperformed the same sector in the S&P 500.4 Although Quest
Diagnostics and our health care sector stock selection detracted from relative
returns, the Fund's sector underweighting versus the benchmark offset some of
this loss. 5

PORTFOLIO BREAKDOWN
Fiduciary Large Capitalization
Growth and Income Fund
7/31/07

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% OF TOTAL
SECTOR/INDUSTRY NET ASSETS
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Communications Equipment 12.9%
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Insurance 9.2%
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Pharmaceuticals 8.3%
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Aerospace & Defense 8.0%
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Machinery 7.9%
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Oil, Gas & Consumable Fuels 7.7%
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Energy Equipment & Services 6.3%
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Specialty Retail 5.9%
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Media 4.5%
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Food & Staples Retailing 4.2%
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Beverages 3.1%
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Semiconductors & Semiconductor
Equipment 2.9%
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Industrial Conglomerates 2.6%
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Food Products 2.6%
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Diversified Telecommunication Services 2.6%
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Commercial Banks 2.4%
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Other 6.4%
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Short-Term Investments &
Other Net Assets 2.5%
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3. The consumer staples sector comprises beverages, food and staples
retailing, food products and tobacco in the SOI.

4. The industrials sector comprises aerospace and defense, industrial
conglomerates and machinery in the SOI.

5. The health care sector comprises pharmaceuticals in the SOI.

Annual Report | 5

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

/s/ S. Mackintosh Pulsifer

S. Mackintosh Pulsifer
Vice President of Franklin Templeton Institutional, LLC (FT Institutional)

/s/ Kenneth J. Siegel

Kenneth J. Siegel
Vice President of FT Institutional

Portfolio Management Team
Fiduciary Large Capitalization Growth and Income Fund

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF JULY 31, 2007, THE END OF THE REPORTING PERIOD. THE WAY WE IMPLEMENT OUR
MAIN INVESTMENT STRATEGIES AND THE RESULTING PORTFOLIO HOLDINGS MAY CHANGE
DEPENDING ON FACTORS SUCH AS MARKET AND ECONOMIC CONDITIONS. THESE OPINIONS MAY
NOT BE RELIED UPON AS INVESTMENT ADVICE OR AN OFFER FOR A PARTICULAR SECURITY.
THE INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET,
COUNTRY, INDUSTRY, SECURITY OR THE FUND. STATEMENTS OF FACT ARE FROM SOURCES
CONSIDERED RELIABLE, BUT THE INVESTMENT MANAGER MAKES NO REPRESENTATION OR
WARRANTY AS TO THEIR COMPLETENESS OR ACCURACY. ALTHOUGH HISTORICAL PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS, THESE INSIGHTS MAY HELP YOU UNDERSTAND OUR
INVESTMENT MANAGEMENT PHILOSOPHY.

6 | Annual Report

Performance Summary as of 7/31/07

FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND

The performance table and graph do not reflect any taxes that a shareholder
would pay on Fund dividends, capital gain distributions, if any, or any realized
gains on the sale of Fund shares. Total return reflects reinvestment of the
Fund's dividends and capital gain distributions, if any, and any unrealized
gains or losses.

PERFORMANCE 1

THE FUND MAY CHARGE A 2% FEE ON SHARES REDEEMED WITHIN SEVEN DAYS OF PURCHASE.

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INCEPTION
1-YEAR 5-YEAR (12/11/98)
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Average Annual Total Return 2 +18.27% +11.96% +3.96%
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TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT 1

The graph below illustrates the hypothetical investment of $10,000 in Fiduciary
Large Capitalization Growth and Income Fund from inception on 12/11/98 through
7/31/07, compared with the Standard & Poor's 500 Index (S&P 500). 3 Total return
represents the change in value of an investment over the periods shown. It
includes Fund expenses, account fees and reinvested dividends. The index is
unmanaged and includes reinvestment of any income or distributions. It differs
from the Fund in composition and does not pay management fees or expenses. One
cannot invest directly in an index.

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

Fiduciary Large
Capitalization
Calendar Month S&P 500 3 Growth and Income Fund
Incept $10,000 $10,000
Dec-98 $10,546 $10,691
Jan-99 $10,989 $10,751
Feb-99 $10,642 $10,221
Mar-99 $11,067 $10,591
Apr-99 $11,498 $11,041
May-99 $11,222 $10,711
Jun-99 $11,845 $11,400
Jul-99 $11,476 $11,149
Aug-99 $11,419 $11,149
Sep-99 $11,104 $10,848
Oct-99 $11,814 $11,349
Nov-99 $12,052 $11,419
Dec-99 $12,763 $11,591
Jan-00 $12,120 $11,150
Feb-00 $11,887 $10,895
Mar-00 $13,050 $11,770
Apr-00 $12,659 $11,758
May-00 $12,394 $11,746
Jun-00 $12,703 $12,129
Jul-00 $12,506 $11,734
Aug-00 $13,279 $12,663
Sep-00 $12,579 $11,832
Oct-00 $12,530 $11,984
Nov-00 $11,537 $11,193
Dec-00 $11,595 $11,393
Jan-01 $12,008 $11,407
Feb-01 $10,909 $10,453
Mar-01 $10,221 $ 9,780
Apr-01 $11,017 $10,384
May-01 $11,082 $10,581
Jun-01 $10,816 $10,173
Jul-01 $10,711 $10,117
Aug-01 $10,037 $ 9,850
Sep-01 $ 9,224 $ 9,289
Oct-01 $ 9,403 $ 9,599
Nov-01 $10,126 $10,162
Dec-01 $10,215 $10,153
Jan-02 $10,067 $ 9,916
Feb-02 $ 9,868 $ 9,871
Mar-02 $10,241 $10,198
Apr-02 $ 9,624 $ 9,528
May-02 $ 9,549 $ 9,424
Jun-02 $ 8,865 $ 8,500
Jul-02 $ 8,176 $ 7,949
Aug-02 $ 8,228 $ 8,024
Sep-02 $ 7,338 $ 7,321
Oct-02 $ 7,987 $ 7,994
Nov-02 $ 8,451 $ 8,442
Dec-02 $ 7,952 $ 7,989
Jan-03 $ 7,745 $ 7,794
Feb-03 $ 7,629 $ 7,659
Mar-03 $ 7,706 $ 7,673
Apr-03 $ 8,343 $ 8,139
May-03 $ 8,781 $ 8,590
Jun-03 $ 8,893 $ 8,665
Jul-03 $ 9,043 $ 8,890
Aug-03 $ 9,217 $ 9,101
Sep-03 $ 9,122 $ 8,905
Oct-03 $ 9,637 $ 9,448
Nov-03 $ 9,717 $ 9,628
Dec-03 $10,228 $10,103
Jan-04 $10,417 $10,361
Feb-04 $10,568 $10,528
Mar-04 $10,412 $10,414
Apr-04 $10,252 $10,247
May-04 $10,391 $10,398
Jun-04 $10,594 $10,566
Jul-04 $10,236 $10,292
Aug-04 $10,274 $10,095
Sep-04 $10,386 $10,299
Oct-04 $10,547 $10,483
Nov-04 $10,968 $10,970
Dec-04 $11,344 $11,243
Jan-05 $11,072 $10,922
Feb-05 $11,295 $11,115
Mar-05 $11,103 $11,013
Apr-05 $10,896 $10,675
May-05 $11,239 $10,948
Jun-05 $11,255 $11,049
Jul-05 $11,676 $11,567
Aug-05 $11,564 $11,470
Sep-05 $11,661 $11,591
Oct-05 $11,471 $11,169
Nov-05 $11,892 $11,672
Dec-05 $11,898 $11,741
Jan-06 $12,220 $12,168
Feb-06 $12,241 $12,150
Mar-06 $12,407 $12,313
Apr-06 $12,576 $12,562
May-06 $12,207 $12,134
Jun-06 $12,226 $11,929
Jul-06 $12,306 $11,822
Aug-06 $12,589 $12,036
Sep-06 $12,916 $12,195
Oct-06 $13,346 $12,410
Nov-06 $13,586 $12,820
Dec-06 $13,777 $13,069
Jan-07 $13,990 $13,164
Feb-07 $13,702 $12,974
Mar-07 $13,874 $13,184
Apr-07 $14,496 $13,855
May-07 $14,992 $14,410
Jun-07 $14,740 $14,232
Jul-07 $14,289 $13,983

Annual Report | 7

Performance Summary (CONTINUED)

ENDNOTES

WHILE STOCKS HAVE HISTORICALLY OUTPERFORMED OTHER ASSET CLASSES OVER THE LONG
TERM, THEY TEND TO FLUCTUATE MORE DRAMATICALLY OVER THE SHORT TERM. THESE PRICE
MOVEMENTS MAY RESULT FROM FACTORS AFFECTING INDIVIDUAL COMPANIES, INDUSTRIES OR
THE SECURITIES MARKET AS A WHOLE. THE FUND MAY INVEST IN STOCKS OF FOREIGN
COMPANIES, WHICH INVOLVE SPECIAL RISKS, INCLUDING CURRENCY FLUCTUATIONS AND
ECONOMIC AS WELL AS POLITICAL UNCERTAINTY. THE FUND'S PORTFOLIO INCLUDES
TECHNOLOGY STOCKS, A SECTOR THAT HAS BEEN ONE OF THE MOST VOLATILE AND INVOLVES
SPECIAL RISKS. THE FUND'S PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE MAIN
INVESTMENT RISKS.

1. Performance prior to the 7/24/03 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.

2. Average annual total return represents the average annual change in value of
an investment over the periods indicated. Average annual total returns smooth
out variations in returns, which can be significant; they are not the same as
year-by-year results.

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.

8 | Annual Report

Your Fund's Expenses

FIDUCIARY LARGE CAPITALIZATION GROWTH AND 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.

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) of the table provides actual account values and
expenses. The "Ending Account Value" is derived from the Fund's actual return,
which includes the effect of Fund expenses.

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

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

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

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

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

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Information in the second line (Hypothetical) of 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 Fund's actual expense ratio and an assumed 5% annual rate of return
before expenses, which does not represent the Fund's actual return. The figure
under the heading "Expenses Paid During Period" shows the hypothetical expenses
your account would have incurred under this scenario. You can compare this
figure with the 5% hypothetical examples that appear in shareholder reports of
other funds.

Annual Report | 9

Your Fund's Expenses (CONTINUED)

PLEASE NOTE THAT EXPENSES SHOWN IN THE TABLE ARE MEANT TO HIGHLIGHT ONGOING
COSTS AND DO NOT REFLECT ANY TRANSACTION COSTS, SUCH AS SALES CHARGES OR
REDEMPTION FEES. Therefore, the second line of the table 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 2/1/07 VALUE 7/31/07 PERIOD* 2/1/07-7/31/07
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Actual $1,000 $1,062.10 $5.32
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Hypothetical (5% return before expenses) $1,000 $1,019.64 $5.21
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* Expenses are equal to the annualized expense ratio of 1.04%, multiplied by the
average account value over the period, multiplied by 181/365 to reflect the
one-half year period.

10 | Annual Report

Fiduciary Small Capitalization Equity Fund

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 with market capitalizations not exceeding $2 billion or the highest
market capitalization in the Russell 2000(R) Index, whichever is greater, at the
time of purchase. 1

We are pleased to bring you Fiduciary Small Capitalization Equity Fund's annual
report for the fiscal year ended July 31, 2007.

PERFORMANCE OVERVIEW

Fiduciary Small Capitalization Equity Fund posted a +25.76% total return for the
12 months ended July 31, 2007. The Fund outperformed its benchmark, the Russell
2000 Growth Index, which had a +16.84% total return during the same period. 2

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.

1. The Russell 2000 Index is market capitalization weighted and measures
performance of the 2,000 smallest companies in the Russell 3000(R) Index, which
represent approximately 8% of total market capitalization of the Russell 3000
Index.

2. 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.

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 | 11

PORTFOLIO BREAKDOWN

Fiduciary Small Capitalization Equity Fund
7/31/07

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% OF TOTAL
SECTOR/INDUSTRY NET ASSETS
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Semiconductors & Semiconductor
Equipment 8.8%
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Biotechnology 6.9%
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Capital Markets 6.5%
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Hotels, Restaurants & Leisure 6.0%
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Communications Equipment 6.0%
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Commercial Services & Supplies 5.6%
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Internet Software & Services 5.0%
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Textiles, Apparel & Luxury Goods 4.9%
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Health Care Providers & Services 4.3%
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Oil, Gas & Consumable Fuels 3.9%
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Health Care Technology 3.6%
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Software 3.2%
- ----------------------------------------------------------------
Aerospace & Defense 3.1%
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Insurance 2.9%
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Energy Equipment & Services 2.7%
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Diversified Financial Services 2.5%
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Internet & Catalog Retail 2.4%
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Commercial Banks 2.2%
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Other 18.4%
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Short-Term Investments & Other Net Assets 1.1%
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MANAGER'S DISCUSSION

During the year under review, growth stocks outpaced value stocks, and small-cap
growth stocks underperformed their large-cap growth counterparts. Large-cap
growth stocks as measured by the Russell 1000(R) Growth Index, returned +19.47%
for the 12 months ended July 31, 2007, compared with a +16.84% total return for
the Russell 2000 Growth Index for the same period. 3 In terms of style, growth
outperformed value as the Russell 2000 Value Index returned +7.67% for the 12
months under review. 4

In this reporting period, Fund performance relative to the Russell 2000 Growth
Index benefited from stock selection in the consumer discretionary, energy and
industrials sectors. 5 Within the consumer discretionary sector, footwear maker
Crocs was a major contributor to absolute and relative performance. New styles
and products, expanding overseas distribution and joint venture agreements
supported Crocs' strong earnings growth during the review period. In the energy
sector, Texas-based Western Refining (not an index component) also posted strong
results throughout the year and was among the Fund's best performing sector
holdings during the reporting period. Western Refining became the fourth-largest
publicly traded independent oil refiner and marketer in the U.S. after acquiring
Giant Industries. In the industrials sector, the Fund benefited from its
investment in Teletech Holdings, a customer relationship management services
provider to multinational corporations. The company reported strong earnings
results as its operating margins dramatically improved during the review period.

However, the Fund also had some detractors from performance. Stock selection in
the telecommunication services and consumer staples sectors weighed on relative
Fund performance during the review period. 6 Our sole telecommunications
services holding, InPhonic, reported a larger-than-expected first-quarter loss
due to higher general and administrative expenses. We subsequently exited our
position in InPhonic. Within the consumer staples sector, Central Garden & Pet,
a

3. Source: Standard & Poor's Micropal. The Russell 1000 Growth Index is market
capitalization weighted and measures performance of those Russell 1000 Index
companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000 Index is market capitalization weighted and measures
performance of the 1,000 largest companies in the Russell 3000 Index, which
represent approximately 92% of total market capitalization of the Russell 3000
Index. See footnote 2 for a description of the Russell 2000 Growth Index.

4. Source: Standard & Poor's Micropal. The Russell 2000 Value Index is market
capitalization weighted and measures performance of those Russell 2000 Index
companies with lower price-to-book ratios and lower forecasted growth values.

5. The Fund's consumer discretionary holdings are in the household durables;
hotels, restaurants and leisure; specialty retail; Internet and catalog retail;
textiles, apparel and luxury goods; and media industries in the SOI. The Fund's
energy holdings are in the energy equipment and services; and oil, gas and
consumable fuels industries in the SOI. The Fund's industrials holdings are in
the aerospace and defense, airfreight and logistics, commercial services and
supplies, and machinery industries in the SOI.

6. The Fund's consumer staples holdings are in the food and staples retailing,
and household products industries in the SOI.

12 | Annual Report

California-based supplier of consumer lawn, garden and pet products also
detracted from performance. The company faced a challenging year as
weather-related issues negatively affected its garden segment. However, at
period-end, we continued to hold Central Garden & Pet as our long-term outlook
for the company remained positive. In other sectors, notable detractors from
relative Fund performance included leading automated card shuffler maker Shuffle
Master and health care services companies Allion Healthcare and Healthways. By
period-end, the Fund sold its investments in Shuffle Master and Allion
Healthcare.

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

/s/ Alison J. Schatz

Alison J. Schatz, CFA
Portfolio Manager of Franklin Templeton Institutional, LLC
Fiduciary Small Capitalization Equity Fund

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF JULY 31, 2007, 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.

Annual Report | 13

Performance Summary as of 7/31/07

FIDUCIARY SMALL CAPITALIZATION EQUITY FUND

PERFORMANCE 1

THE FUND MAY CHARGE A 2% FEE ON SHARES REDEEMED WITHIN SEVEN DAYS OF PURCHASE.

- --------------------------------------------------------------------------------
1- YEAR 5-YEAR 10-YEAR
- --------------------------------------------------------------------------------
Average Annual Total Return 2 +25.76% +12.41% +6.95%
- --------------------------------------------------------------------------------

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT 1

The graph below illustrates the hypothetical investment of $10,000 in Fiduciary
Small Capitalization Equity Fund from 8/1/97 through 7/31/07, compared with the
Russell 2000 Growth Index. 3 Total return represents the change in value of an
investment over the periods shown. It includes Fund expenses, account fees and
reinvested dividends. The index is unmanaged and includes reinvestment of any
income or distributions. It differs from the Fund in composition and does not
pay management fees or expenses. One cannot invest directly in an index.

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

Fiduciary Small
Capitalization Russell 2000
Calendar Month Equity Fund Growth Index 3
Jul-97 $10,000 $10,000
Aug-97 $10,144 $10,300
Sep-97 $11,220 $11,122
Oct-97 $10,700 $10,454
Nov-97 $10,375 $10,205
Dec-97 $10,495 $10,211
Jan-98 $10,273 $10,074
Feb-98 $11,199 $10,964
Mar-98 $11,762 $11,424
Apr-98 $11,651 $11,494
May-98 $10,717 $10,659
Jun-98 $11,110 $10,768
Jul-98 $10,443 $ 9,868
Aug-98 $ 8,014 $ 7,590
Sep-98 $ 8,718 $ 8,360
Oct-98 $ 9,088 $ 8,796
Nov-98 $ 9,821 $ 9,478
Dec-98 $10,814 $10,336
Jan-99 $11,747 $10,801
Feb-99 $10,584 $ 9,813
Mar-99 $11,080 $10,162
Apr-99 $11,488 $11,060
May-99 $11,140 $11,077
Jun-99 $12,265 $11,661
Jul-99 $12,325 $11,300
Aug-99 $12,658 $10,878
Sep-99 $12,991 $11,088
Oct-99 $13,865 $11,372
Nov-99 $15,413 $12,574
Dec-99 $18,308 $14,790
Jan-00 $18,267 $14,652
Feb-00 $22,199 $18,062
Mar-00 $20,969 $16,163
Apr-00 $18,397 $14,531
May-00 $17,741 $13,259
Jun-00 $19,877 $14,971
Jul-00 $19,133 $13,688
Aug-00 $20,897 $15,128
Sep-00 $20,767 $14,377
Oct-00 $19,764 $13,210
Nov-00 $16,989 $10,811
Dec-00 $18,866 $11,473
Jan-01 $18,146 $12,401
Feb-01 $16,852 $10,701
Mar-01 $15,217 $ 9,728
Apr-01 $16,504 $10,919
May-01 $16,568 $11,172
Jun-01 $17,054 $11,477
Jul-01 $16,099 $10,498
Aug-01 $15,039 $ 9,842
Sep-01 $13,082 $ 8,254
Oct-01 $14,125 $ 9,048
Nov-01 $15,136 $ 9,804
Dec-01 $15,927 $10,414
Jan-02 $15,331 $10,044
Feb-02 $14,387 $ 9,393
Mar-02 $15,242 $10,210
Apr-02 $14,556 $ 9,989
May-02 $13,425 $ 9,405
Jun-02 $12,428 $ 8,607
Jul-02 $10,906 $ 7,285
Aug-02 $10,995 $ 7,281
Sep-02 $10,149 $ 6,755
Oct-02 $10,630 $ 7,097
Nov-02 $11,102 $ 7,800
Dec-02 $10,283 $ 7,263
Jan-03 $ 9,793 $ 7,065
Feb-03 $ 9,535 $ 6,877
Mar-03 $ 9,686 $ 6,981
Apr-03 $10,505 $ 7,642
May-03 $11,859 $ 8,503
Jun-03 $11,992 $ 8,667
Jul-03 $12,687 $ 9,322
Aug-03 $13,675 $ 9,822
Sep-03 $13,132 $ 9,574
Oct-03 $14,262 $10,401
Nov-03 $14,761 $10,740
Dec-03 $14,894 $10,788
Jan-04 $15,473 $11,355
Feb-04 $15,571 $11,337
Mar-04 $15,322 $11,390
Apr-04 $14,405 $10,818
May-04 $14,618 $11,034
Jun-04 $15,055 $11,401
Jul-04 $13,230 $10,377
Aug-04 $12,811 $10,154
Sep-04 $13,479 $10,715
Oct-04 $13,897 $10,976
Nov-04 $15,010 $11,904
Dec-04 $15,429 $12,331
Jan-05 $14,556 $11,776
Feb-05 $14,877 $11,937
Mar-05 $14,325 $11,490
Apr-05 $13,862 $10,758
May-05 $14,636 $11,517
Jun-05 $15,126 $11,889
Jul-05 $16,168 $12,720
Aug-05 $15,936 $12,541
Sep-05 $15,954 $12,641
Oct-05 $15,028 $12,173
Nov-05 $15,838 $12,863
Dec-05 $16,070 $12,844
Jan-06 $17,770 $14,082
Feb-06 $17,966 $14,007
Mar-06 $18,910 $14,688
Apr-06 $18,785 $14,646
May-06 $17,263 $13,615
Jun-06 $16,737 $13,623
Jul-06 $15,562 $12,916
Aug-06 $16,061 $13,294
Sep-06 $16,426 $13,384
Oct-06 $17,521 $14,251
Nov-06 $18,233 $14,592
Dec-06 $18,063 $14,558
Jan-07 $18,529 $14,828
Feb-07 $18,529 $14,781
Mar-07 $18,758 $14,918
Apr-07 $19,123 $15,309
May-07 $20,092 $16,008
Jun-07 $20,082 $15,916
Jul-07 $19,571 $15,089

14 | Annual Report

Performance Summary (CONTINUED)

ENDNOTES

WHILE STOCKS HAVE HISTORICALLY OUTPERFORMED OTHER ASSET CLASSES OVER THE LONG
TERM, THEY TEND TO FLUCTUATE MORE DRAMATICALLY OVER THE SHORT TERM. SMALLER
COMPANY SECURITIES HAVE BEEN MORE VOLATILE IN PRICE THAN LARGER COMPANY
SECURITIES, ESPECIALLY OVER THE SHORT TERM. THESE PRICE MOVEMENTS MAY RESULT
FROM FACTORS AFFECTING INDIVIDUAL COMPANIES, INDUSTRIES OR THE SECURITIES MARKET
AS A WHOLE. THE FUND'S PORTFOLIO INCLUDES TECHNOLOGY STOCKS, A SECTOR THAT HAS
BEEN ONE OF THE MOST VOLATILE AND INVOLVES SPECIAL RISKS. THE FUND MAY INVEST IN
STOCKS OF FOREIGN COMPANIES, WHICH INVOLVE SPECIAL RISKS, INCLUDING CURRENCY
FLUCTUATIONS AND ECONOMIC AS WELL AS POLITICAL UNCERTAINTY. THE FUND'S
PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE MAIN INVESTMENT RISKS.

1. Performance prior to the 7/24/03 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.

3. 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.

Annual Report | 15

Your Fund's Expenses

FIDUCIARY SMALL CAPITALIZATION EQUITY FUND

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

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

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

ACTUAL FUND EXPENSES

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

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

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

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

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

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

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

16 | Annual Report

Your Fund's Expenses (CONTINUED)

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

- ----------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 2/1/07 VALUE 7/31/07 PERIOD* 2/1/07-7/31/07
- ----------------------------------------------------------------------------------------------------------

Actual $1,000 $1,056.20 $7.04
- ----------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,017.95 $6.90
- ----------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio of 1.38%, multiplied by the
average account value over the period, multiplied by 181/365 to reflect the
one-half year period.

Annual Report | 17

Franklin Global Trust

FINANCIAL HIGHLIGHTS a

FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND

-----------------------------------------------------------------
YEAR ENDED JULY 31, YEAR ENDED
NOVEMBER 30,
2007 2006 2005 2004 2003 h 2002
-----------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year .................... $ 6.63 $ 7.15 $ 6.77 $ 5.91 $ 5.65 $ 7.21
-----------------------------------------------------------------
Income from investment operations b:
Net investment income c ............................ 0.04 0.04 0.08 0.03 0.03 0.04
Net realized and unrealized gains (losses) ......... 1.14 0.13 0.74 0.90 0.27 (1.19)
-----------------------------------------------------------------
Total from investment operations ...................... 1.18 0.17 0.82 0.93 0.30 (1.15)
-----------------------------------------------------------------
Less distributions from:
Net investment income .............................. (0.04) (0.04) (0.08) (0.03) (0.04) (0.05)
Net realized gains ................................. (0.49) (0.65) (0.36) (0.04) -- (0.36)
-----------------------------------------------------------------
Total distributions ................................... (0.53) (0.69) (0.44) (0.07) (0.04) (0.41)
-----------------------------------------------------------------
Redemption fees ....................................... -- f -- -- -- -- --
-----------------------------------------------------------------
Net asset value, end of year .......................... $ 7.28 $ 6.63 $ 7.15 $ 6.77 $ 5.91 $ 5.65
=================================================================

Total return d ........................................ 18.27% 2.22% 12.38% 15.78% 5.30% (16.93)% i

RATIOS TO AVERAGE NET ASSETS e
Expenses before waiver and payments by affiliates ..... 1.03% 1.02% 1.01% 1.02% 1.21% 1.10%
Expenses net of waiver and payments by affiliates ..... 1.03% g 1.02% g 1.01% g 0.98% 1.03% 1.03%
Net investment income ................................. 0.63% 0.57% 1.13% 0.43% 0.77% 0.73%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ....................... $89,971 $91,915 $94,536 $82,921 $70,684 $60,904
Portfolio turnover rate ............................... 41.86% 54.63% 47.08% 48.04% 33.02% 64.46%

a Financial highlights presented reflect historical financial information from
Fiduciary Trust International (FTI) - Large Capitalization Growth and Income
Fund as a result of a merger on July 24, 2003.

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

c Based on average daily shares outstanding.

d Total return is not annualized for periods less than one year.

e Ratios are annualized for periods less than one year.

f Amount rounds to less than $0.01 per share.

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

h For the period December 1, 2002 to July 31, 2003.

i 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 0.15%.

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

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

- --------------------------------------------------------------------------------------------------------------------
FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND COUNTRY SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------

COMMON STOCKS 97.5%
AEROSPACE & DEFENSE 8.0%
Honeywell International Inc. ....................................... United States 44,000 $ 2,530,440
L-3 Communications Holdings Inc. ................................... United States 22,000 2,146,320
United Technologies Corp. .......................................... United States 35,000 2,553,950
-------------
7,230,710
-------------
BEVERAGES 3.1%
InBev NV ........................................................... Belgium 35,000 2,818,573
-------------
COMMERCIAL BANKS 2.4%
Banco Bilbao Vizcaya Argentaria SA ................................. Spain 90,000 2,203,313
-------------
COMMUNICATIONS EQUIPMENT 12.9%
a Cisco Systems Inc. ................................................. United States 70,000 2,023,700
a Corning Inc. ....................................................... United States 85,600 2,040,704
Harris Corp. ....................................................... United States 40,000 2,195,200
a Juniper Networks Inc. .............................................. United States 97,000 2,906,120
QUALCOMM Inc. ...................................................... United States 59,000 2,457,350
-------------
11,623,074
-------------
DIVERSIFIED FINANCIAL SERVICES 1.5%
Citigroup Inc. ..................................................... United States 30,000 1,397,100
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES 2.6%
Telenor ASA ........................................................ Norway 125,000 2,300,396
-------------
ENERGY EQUIPMENT & SERVICES 6.3%
Schlumberger Ltd. .................................................. United States 28,000 2,652,160
a Transocean Inc. .................................................... United States 28,000 3,008,600
-------------
5,660,760
-------------
FOOD & STAPLES RETAILING 4.2%
CVS Caremark Corp. ................................................. United States 60,000 2,111,400
Tesco PLC .......................................................... United Kingdom 200,000 1,656,648
-------------
3,768,048
-------------
FOOD PRODUCTS 2.6%
Nestle SA .......................................................... Switzerland 6,000 2,305,641
-------------
INDUSTRIAL CONGLOMERATES 2.6%
General Electric Co. ............................................... United States 60,000 2,325,600
-------------
INSURANCE 9.2%
AFLAC Inc. ......................................................... United States 42,000 2,189,040
American International Group Inc. .................................. United States 40,000 2,567,200
Fidelity National Financial Inc., A ................................ United States 76,000 1,587,640
Hartford Financial Services Group Inc. ............................. United States 21,000 1,929,270
-------------
8,273,150
-------------
IT SERVICES 1.3%
a Cognizant Technology Solutions Corp., A ............................ United States 14,000 1,133,720
-------------

Annual Report | 19

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

COMMON STOCKS (CONTINUED)
MACHINERY 7.9%
Danaher Corp. ...................................................... United States 28,000 $ 2,091,040
Komatsu Ltd. ....................................................... Japan 100,000 3,204,452
Tata Motors Ltd., ADR .............................................. India 104,000 1,783,600
-------------
7,079,092
-------------
MEDIA 4.5%
News Corp., B ...................................................... United States 100,000 2,266,000
Time Warner Inc. ................................................... United States 95,000 1,829,700
-------------
4,095,700
-------------
OIL, GAS & CONSUMABLE FUELS 7.7%
Cameco Corp. ....................................................... Canada 41,000 1,671,980
ConocoPhillips ..................................................... United States 34,000 2,748,560
Exxon Mobil Corp. .................................................. United States 29,000 2,468,770
-------------
6,889,310
-------------
PHARMACEUTICALS 8.3%
Johnson & Johnson .................................................. United States 34,000 2,057,000
Roche Holding AG ................................................... Switzerland 11,000 1,948,655
Sanofi-Aventis ..................................................... France 21,000 1,759,070
Wyeth .............................................................. United States 35,000 1,698,200
-------------
7,462,925
-------------
REAL ESTATE INVESTMENT TRUST 1.7%
CapitalSource Inc. ................................................. United States 81,000 1,539,000
-------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.9%
Intel Corp. ........................................................ United States 111,000 2,621,820
-------------
SPECIALTY RETAIL 5.9%
Best Buy Co. Inc. .................................................. United States 42,000 1,872,780
a Dick's Sporting Goods Inc. ......................................... United States 36,000 2,024,280
a Office Depot Inc. .................................................. United States 56,000 1,397,760
-------------
5,294,820
-------------
TOBACCO 1.9%
Altria Group Inc. .................................................. United States 26,000 1,728,220
-------------
TOTAL COMMON STOCKS (COST $64,917,075) ............................. 87,750,972
-------------
SHORT TERM INVESTMENT (COST $2,233,030) 2.5%
MONEY MARKET FUND 2.5%
b Franklin Institutional Fiduciary Trust Money Market Portfolio,
5.00% ............................................................ United States 2,233,030 2,233,030
-------------
TOTAL INVESTMENTS (COST $67,150,105) 100.0% ........................ 89,984,002
OTHER ASSETS, LESS LIABILITIES (0.0)% c ............................ (12,550)
-------------
NET ASSETS 100.0% .................................................. $ 89,971,452
=============

SELECTED PORTFOLIO ABBREVIATION

ADR - American Depository Receipt

a Non-income producing for the twelve months ended July 31, 2007.

b See Note 7 regarding investments in the Franklin Institutional Fiduciary Trust
Money Market Portfolio. The rate shown is the annualized seven-day yield at
period end.

c Rounds to less than 0.01% of net assets.

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

Franklin Global Trust

FINANCIAL HIGHLIGHTS a

FIDUCIARY SMALL CAPITALIZATION EQUITY FUND

------------------------------------------------------------------
YEAR ENDED JULY 31, YEAR ENDED
NOVEMBER 30,
2007 2006 2005 2004 2003 g 2002
------------------------------------------------------------------

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

Net asset value, beginning of year ................. $ 17.48 $ 18.16 $ 14.86 $ 14.25 $ 12.48 $ 18.71
------------------------------------------------------------------
Income from investment operations b:
Net investment income (loss) c .................. (0.22) (0.20) (0.10) (0.16) (0.07) (0.15)
Net realized and unrealized gains (losses) ...... 4.67 (0.48) 3.40 0.77 1.84 (4.37)
------------------------------------------------------------------
Total from investment operations ................... 4.45 (0.68) 3.30 0.61 1.77 (4.52)
------------------------------------------------------------------
Less distributions from net realized gains ......... (0.52) -- -- -- -- (1.71)
------------------------------------------------------------------
Net asset value, end of year ....................... $ 21.41 $ 17.48 $ 18.16 $ 14.86 $ 14.25 $ 12.48
==================================================================

Total return d ..................................... 25.76% (3.74)% 22.21% 4.28% 14.18% (26.65)%

RATIOS TO AVERAGE NET ASSETS e
Expenses before waiver and payments by affiliates .. 1.38% 1.35% 1.30% 1.27% 1.43% 1.34%
Expenses net of waiver and payments by affiliates .. 1.38% f 1.35% f 1.30% 1.26% 1.30% 1.30%
Net investment income (loss) ....................... (1.12)% (1.07)% (0.66)% (1.01)% (0.89)% (1.01)%

SUPPLEMENTAL DATA
Net assets, end of year (000's) .................... $28,347 $37,233 $44,821 $62,786 $61,026 $59,882
Portfolio turnover rate ............................ 39.30% 97.79% 111.92% 130.22% 92.58% 178.05%

a Financial highlights presented reflect historical financial information from
Fiduciary Trust International (FTI) - Small Capitalization Equity Fund as a
result of a merger on July 24, 2003.

c Based on average daily shares outstanding.

d Total return is not annualized for periods less than one year.

e Ratios are annualized for periods less than one year.

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

g For the period December 1, 2002 to July 31, 2003.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 21

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

- ------------------------------------------------------------------------------
FIDUCIARY SMALL CAPITALIZATION EQUITY FUND SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS 98.9%
AEROSPACE & DEFENSE 3.1%
a Orbital Sciences Corp. ......................... 18,600 $ 394,134
a Teledyne Technologies Inc. ..................... 10,700 474,759
------------
868,893
------------
AIR FREIGHT & LOGISTICS 1.4%
a Hub Group Inc., A .............................. 12,000 408,240
------------
BIOTECHNOLOGY 6.9%
a Alexion Pharmaceuticals Inc. ................... 10,000 581,600
a BioMarin Pharmaceutical Inc. ................... 20,800 375,648
a Indevus Pharmaceuticals Inc. ................... 75,200 533,168
a Medarex Inc. ................................... 32,000 453,120
------------
1,943,536
------------
CAPITAL MARKETS 6.5%
a GFI Group Inc. ................................. 4,300 320,436
Greenhill & Co. Inc. ........................... 4,500 261,000
a Investment Technology Group Inc. ............... 12,100 483,516
optionsXpress Holdings Inc. .................... 18,900 472,689
a Thomas Weisel Partners Group Inc. .............. 21,300 296,070
------------
1,833,711
------------
COMMERCIAL BANKS 2.2%
First Security Group Inc. ...................... 30,400 297,312
a Signature Bank ................................. 11,000 339,790
------------
637,102
------------
COMMERCIAL SERVICES & SUPPLIES 5.6%
a Clean Harbors Inc. ............................. 8,000 384,240
a Huron Consulting Group Inc. .................... 6,000 407,580
a Korn/Ferry International ....................... 14,400 340,272
a TeleTech Holdings Inc. ......................... 16,000 469,280
------------
1,601,372
------------
COMMUNICATIONS EQUIPMENT 6.0%
a ADC Telecommunications Inc. .................... 25,100 469,119
a Arris Group Inc. ............................... 32,800 486,096
a Ixia ........................................... 39,400 368,784
a Sonus Networks Inc. ............................ 56,100 383,724
------------
1,707,723
------------
COMPUTERS & PERIPHERALS 1.1%
a Emulex Corp. ................................... 15,300 302,940
------------
DIVERSIFIED CONSUMER SERVICES 1.0%
a INVESTools Inc. ................................ 29,000 287,680
------------
DIVERSIFIED FINANCIAL SERVICES 2.5%
a IntercontinentalExchange Inc. .................. 1,900 287,147
a MarketAxess Holdings Inc. ...................... 25,000 415,250
------------
702,397
------------

22 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------
FIDUCIARY SMALL CAPITALIZATION EQUITY FUND SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.8%
a Itron Inc. ..................................... 6,400 $ 508,352
------------
ENERGY EQUIPMENT & SERVICES 2.7%
a Hercules Offshore Inc. ......................... 10,600 318,212
a Hornbeck Offshore Services Inc. ................ 10,300 443,415
------------
761,627
------------
FOOD & STAPLES RETAILING 1.2%
a United Natural Foods Inc. ...................... 12,200 332,206
------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.4%
a American Medical Systems Holdings Inc. ......... 21,700 396,676
------------
HEALTH CARE PROVIDERS & SERVICES 4.3%
a Healthways Inc. ................................ 10,900 476,330
a Nighthawk Radiology Holdings Inc. .............. 16,500 340,395
a Psychiatric Solutions Inc. ..................... 11,700 398,853
------------
1,215,578
------------
HEALTH CARE TECHNOLOGY 3.6%
a Omnicell Inc. .................................. 20,100 479,988
a Phase Forward .................................. 32,300 555,237
------------
1,035,225
------------
HOTELS RESTAURANTS & LEISURE 6.0%
a Chipotle Mexican Grill Inc., A ................. 3,400 300,356
a Cosi Inc. ...................................... 45,900 205,173
a LIFE TIME FITNESS Inc. ......................... 7,100 365,082
a Ruth's Chris Steak House Inc. .................. 19,400 324,368
a Vail Resorts Inc. .............................. 9,400 503,370
------------
1,698,349
------------
HOUSEHOLD DURABLES 1.1%
a Jarden Corp. ................................... 8,600 310,718
------------
HOUSEHOLD PRODUCTS 1.6%
a Central Garden & Pet Co. ....................... 12,200 153,476
a Central Garden & Pet Co., A .................... 24,400 298,656
------------
452,132
------------
INSURANCE 2.9%
Max Capital Group Ltd. ......................... 16,000 417,760
National Financial Partners Corp. .............. 8,500 394,060
------------
811,820
------------
INTERNET & CATALOG RETAIL 2.4%
a Gaiam Inc., A .................................. 41,600 668,928
------------
INTERNET SOFTWARE & SERVICES 5.0%
a Art Technology Group Inc. ...................... 132,700 421,986
a Equinix Inc. ................................... 5,900 512,769

Annual Report | 23

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------
FIDUCIARY SMALL CAPITALIZATION EQUITY FUND SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
INTERNET SOFTWARE & SERVICES (CONTINUED)
a The Knot Inc. .................................. 13,600 $ 246,840
a Tumbleweed Communications Corp. ................ 102,022 232,610
------------
1,414,205
------------
LIFE SCIENCES TOOLS & SERVICES 1.2%
a AMAG Pharmaceuticals Inc. ...................... 6,200 332,878
------------
MACHINERY 1.8%
Kaydon Corp. ................................... 9,500 505,495
------------
MEDIA 1.7%
a Lions Gate Entertainment Corp. ................. 44,900 493,451
------------
METALS & MINING 0.9%
Metal Management Inc. .......................... 6,000 252,060
------------
OIL, GAS & CONSUMABLE FUELS 3.9%
a EXCO Resources Inc. ............................ 23,000 401,580
a Petrohawk Energy Corp. ......................... 26,055 390,565
Western Refining Inc. .......................... 5,900 327,450
------------
1,119,595
------------
PHARMACEUTICALS 0.8%
a POZEN Inc. ..................................... 14,000 233,100
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 8.8%
a ANADIGICS Inc. ................................. 26,100 379,233
a Diodes Inc. .................................... 14,325 380,615
a FormFactor Inc. ................................ 6,000 230,340
a Microsemi Corp. ................................ 17,800 414,918
a Microtune Inc. ................................. 71,700 390,765
a Tessera Technologies Inc. ...................... 11,000 452,430
a Trident Microsystems Inc. ...................... 16,100 244,881
------------
2,493,182
------------
SOFTWARE 3.2%
a Ansoft Corp. ................................... 15,600 394,524
a Nuance Communications Inc. ..................... 23,200 382,336
a Opsware Inc. ................................... 9,100 128,310
------------
905,170
------------
SPECIALTY RETAIL 1.4%
a Zumiez Inc. .................................... 11,000 406,890
------------
TEXTILES, APPAREL & LUXURY GOODS 4.9%
a Crocs Inc. ..................................... 8,500 504,220
a,b Lululemon Athletica Inc. (Canada) .............. 2,100 67,494
a Volcom Inc. .................................... 9,900 351,252
a The Warnaco Group Inc. ......................... 13,200 476,651
------------
1,399,617
------------
TOTAL COMMON STOCKS (COST $22,145,436) ......... 28,040,848
------------

24 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------
FIDUCIARY SMALL CAPITALIZATION EQUITY FUND SHARES VALUE
- ------------------------------------------------------------------------------------------------------------

SHORT TERM INVESTMENT (COST $259,523) 0.9%
MONEY MARKET FUND 0.9%
c Franklin Institutional Fiduciary Trust Money Market Portfolio, 5.00% ........ 259,523 $ 259,523
------------
TOTAL INVESTMENTS (COST $22,404,959) 99.8% .................................. 28,300,371
OTHER ASSETS, LESS LIABILITIES 0.2% ......................................... 46,502
------------
NET ASSETS 100.0% ........................................................... $28,346,873
============

a Non-income producing for the twelve months ended July 31, 2007.

b See Note 1(c) regarding securities purchased on a when-issued or delayed
delivery basis.

c See Note 7 regarding investments in the Franklin Institutional Fiduciary Trust
Money Market Portfolio. The rate shown is the annualized seven-day yield at
period end.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 25

Franklin Global Trust

FINANCIAL STATEMENTS

STATEMENTS OF ASSETS AND LIABILITIES
July 31, 2007

--------------------------------
FIDUCIARY
LARGE FIDUCIARY
CAPITALIZATION SMALL
GROWTH AND CAPITALIZATION
INCOME FUND EQUITY FUND
--------------------------------

Assets:
Investments in securities:
Cost - Unaffiliated issuers ...................................................... $ 64,917,075 $ 22,145,436
Cost - Sweep Money Fund (Note 7) ................................................. 2,233,030 259,523
--------------------------------
Total cost of investments ........................................................ $ 67,150,105 $ 22,404,959
================================
Value - Unaffiliated issuers ..................................................... $ 87,750,972 $ 28,040,848
Value - Sweep Money Fund (Note 7) ................................................ 2,233,030 259,523
--------------------------------
Total value of investments ....................................................... 89,984,002 28,300,371
Foreign currency, at value (cost $10,312) ........................................... 10,337 --
Receivables:
Investment securities sold ....................................................... -- 530,659
Capital shares sold .............................................................. 22,000 250
Dividends ........................................................................ 46,046 --
--------------------------------
Total assets .................................................................. 90,062,385 28,831,280
--------------------------------
Liabilities:
Payables:
Investment securities purchased .................................................. -- 447,208
Capital shares redeemed .......................................................... 5,000 --
Affiliates ....................................................................... 73,183 30,045
Reports to shareholders .......................................................... 7,850 4,500
Accrued expenses and other liabilities .............................................. 4,900 2,654
--------------------------------
Total liabilities ............................................................. 90,933 484,407
--------------------------------
Net assets, at value ....................................................... $ 89,971,452 $ 28,346,873
================================
Net assets consist of:
Paid-in capital ..................................................................... $ 60,418,852 $ 19,382,482
Undistributed net investment income ................................................. 52,212 --
Net unrealized appreciation (depreciation) .......................................... 22,834,096 5,895,412
Accumulated net realized gain (loss) ................................................ 6,666,292 3,068,979
--------------------------------
Net assets, at value ....................................................... $ 89,971,452 $ 28,346,873
================================
Shares outstanding ..................................................................... 12,352,221 1,323,704
================================
Net asset value and maximum offering price per sharea .................................. $ 7.28 $ 21.41
================================

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

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF OPERATIONS
for the year ended July 31, 2007

--------------------------------
FIDUCIARY
LARGE FIDUCIARY
CAPITALIZATION SMALL
GROWTH AND CAPITALIZATION
INCOME FUND EQUITY FUND
--------------------------------

Investment income:
Dividends:
Unaffiliated issuers ............................................................. $ 1,406,261 $ 39,467
Sweep Money Fund (Note 7) ........................................................ 141,924 40,762
Interest ............................................................................ 70 --
--------------------------------
Total investment income ....................................................... 1,548,255 80,229
--------------------------------
Expenses:
Management fees (Note 3a) ........................................................... 688,367 316,199
Administrative fees (Note 3b) ....................................................... 186,234 63,800
Transfer agent fees (Note 3d) ....................................................... 2,410 3,373
Custodian fees (Note 4) ............................................................. 7,716 859
Reports to shareholders ............................................................. 12,806 7,169
Registration and filing fees ........................................................ 22,752 17,218
Professional fees ................................................................... 23,918 22,204
Trustees' fees and expenses ......................................................... 7,532 2,965
Other ............................................................................... 6,462 4,564
--------------------------------
Total expenses ................................................................ 958,197 438,351
Expense reductions (Note 4) ................................................... (872) (173)
--------------------------------
Net expenses ............................................................... 957,325 438,178
--------------------------------
Net investment income (loss) ............................................ 590,930 (357,949)
--------------------------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ...................................................................... 7,915,356 3,392,364
Foreign currency transactions .................................................... (11,093) --
--------------------------------
Net realized gain (loss) ................................................ 7,904,263 3,392,364
--------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments ...................................................................... 7,270,983 5,166,733
Translation of assets and liabilities denominated in foreign currencies .......... 199 --
--------------------------------
Net change in unrealized appreciation (depreciation) .................... 7,271,182 5,166,733
--------------------------------
Net realized and unrealized gain (loss) ................................................ 15,175,445 8,559,097
--------------------------------
Net increase (decrease) in net assets resulting from operations ........................ $ 15,766,375 $ 8,201,148
================================

Annual Report |
The accompanying notes are an integral part of these financial statements. | 27

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

-----------------------------------------------------------
FIDUCIARY FIDUCIARY
LARGE CAPITALIZATION SMALL CAPITALIZATION
GROWTH AND INCOME FUND EQUITY FUND
-----------------------------------------------------------
YEAR ENDED JULY 31, YEAR ENDED JULY 31,
2007 2006 2007 2006
-----------------------------------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income (loss) ................................... $ 590,930 $ 538,950 $ (357,949) $ (454,089)
Net realized gain (loss) from investments and foreign
currency transactions ....................................... 7,904,263 5,315,611 3,392,364 8,685,228
Net change in unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies ........................... 7,271,182 (3,552,481) 5,166,733 (9,487,391)
-----------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations ....................................... 15,766,375 2,302,080 8,201,148 (1,256,252)
-----------------------------------------------------------
Distributions to shareholders from:
Net investment income .......................................... (494,689) (533,657) -- --
Net realized gains ............................................. (6,451,080) (8,479,663) (762,125) --
-----------------------------------------------------------
Total distributions to shareholders ............................... (6,945,769) (9,013,320) (762,125) --
-----------------------------------------------------------
Capital share transactions (Note 2) ............................... (10,763,776) 4,089,593 (16,324,813) (6,332,160)
-----------------------------------------------------------
Redemption fees ................................................... 4 -- -- --
-----------------------------------------------------------
Net increase (decrease) in net assets .................... (1,943,166) (2,621,647) (8,885,790) (7,588,412)
Net assets:
Beginning of year ................................................. 91,914,618 94,536,265 37,232,663 44,821,075
-----------------------------------------------------------
End of year ....................................................... $ 89,971,452 $ 91,914,618 $ 28,346,873 $ 37,232,663
===========================================================
Undistributed net investment income included in net assets:
End of year .................................................... $ 52,212 $ 21,727 $ -- $ --
===========================================================

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

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The following summarizes the Funds' significant accounting policies.

A. SECURITY VALUATION

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

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

The Trust has procedures to determine the fair value of individual securities
and other assets for which market prices are not readily available or which may
not be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the availability (including the reliability) of the value of a portfolio
security held by the Fund. The investment manager monitors price movements
following the close of trading in foreign stock markets through a series of
country specific market proxies (such as baskets of American Depository
Receipts, futures contracts and exchange traded funds). These price movements
are measured against established trigger thresholds for each specific market
proxy to assist in determining if an event has occurred. If such an event
occurs, the securities may be valued using fair value procedures, which may
include the use of independent pricing services. All security valuation
procedures are approved by the Trust's Board of Trustees.

Annual Report | 29

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. FOREIGN CURRENCY TRANSLATION

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

The 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 on the
Statement of Operations.

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

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

The Funds 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
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

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

30 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. FOREIGN CURRENCY CONTRACTS (CONTINUED)

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

E. INCOME TAXES

No provision has been made for U.S. income taxes because it is each fund's
policy to qualify as a regulated investment company under the Internal Revenue
Code and to distribute to shareholders substantially all of its taxable income
and net realized gains.

F. 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. Dividend income is
recorded on the ex-dividend date except that certain dividends from foreign
securities are recognized as soon as the Funds are notified of the ex-dividend
date. Distributions to shareholders are recorded on the ex-dividend date and are
determined according to income tax regulations (tax basis). Distributable
earnings determined on a tax basis may differ from earnings recorded in
accordance with accounting principles generally accepted in the United States of
America. These differences may be permanent or temporary. Permanent differences
are reclassified among capital accounts to reflect their tax character. These
reclassifications have no impact on net assets or the results of operations.
Temporary differences are not reclassified, as they may reverse in subsequent
periods.

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 of the Trust. Fund
specific expenses are charged directly to the fund that incurred the expense.

G. 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.

H. REDEMPTION FEES

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

Annual Report | 31

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I. GUARANTEES AND INDEMNIFICATIONS

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

2. SHARES OF BENEFICIAL INTEREST

At July 31, 2007, there were an unlimited number of shares authorized (no par
value). Transactions in the Funds' shares were as follows:

------------------------------------------------------
FIDUCIARY FIDUCIARY
LARGE CAPITALIZATION SMALL CAPITALIZATION
GROWTH AND INCOME FUND EQUITY FUND
------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------

Year ended July 31, 2007
Shares sold ........................ 232,000 $ 1,611,176 27,666 $ 570,692
Shares issued in reinvestment
of distributions ................ 926,118 6,334,752 38,157 761,994
Shares redeemed .................... (2,668,541) (18,709,704) (872,468) (17,657,499)
------------------------------------------------------
Net increase (decrease) ............ (1,510,423) $(10,763,776) (806,645) $(16,324,813)
======================================================
Year ended July 31, 2006
Shares sold ........................ 758,648 $ 5,206,412 27,300 $ 488,316
Shares issued in reinvestment
of distributions ................ 1,240,651 8,324,935 -- --
Shares redeemed .................... (1,365,865) (9,441,754) (364,445) (6,820,476)
------------------------------------------------------
Net increase (decrease) ............ 633,434 $ 4,089,593 (337,145) $ (6,332,160)
======================================================

3. TRANSACTIONS WITH AFFILIATES

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

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

Fiduciary International, Inc. (Fiduciary) Investment manager
Franklin Templeton Institutional, LLC (FT Institutional) 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

32 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

A. MANAGEMENT FEES

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

- -------------------------------------------------------------------
ANNUALIZED
FEE RATE
- -------------------------------------------------------------------
Fiduciary Large Capitalization Growth and Income Fund 0.75%
Fiduciary Small Capitalization Equity Fund 1.00%

Under a subadvisory agreement, FT Institutional, an affiliate of Fiduciary,
provides subadvisory services to the Fiduciary Small Capitalization Equity Fund
and receives from Fiduciary fees based on the average daily net assets of the
fund.

B. ADMINISTRATIVE FEES

The Funds pay an administrative fee to FT Services of 0.20% per year of the
average daily net assets of each of the Funds.

C. DISTRIBUTION FEES

The Trust's Board of Trustees has adopted a distribution plan pursuant to Rule
12b-1under the 1940 Act. The Funds have not activated the plan.

D. TRANSFER AGENT FEES

For the year ended July 31, 2007, the Funds paid transfer agent fees as noted in
the Statements of Operations of which the following amounts were retained by
Investor Services:

------------------------------------------
FIDUCIARY LARGE FIDUCIARY SMALL
CAPITALIZATION GROWTH CAPITALIZATION
AND INCOME FUND EQUITY FUND
------------------------------------------
Transfer agent fees ............... $371 $838

4. EXPENSE OFFSET ARRANGEMENT

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, 2007, the
custodian fees were reduced as noted in the Statements of Operations.

Annual Report | 33

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. INCOME TAXES

For tax purposes, realized currency losses occurring subsequent to October 31,
may be deferred and treated as occurring on the first day of the following
fiscal year. At July 31, 2007, the Fiduciary Large Capitalization Growth and
Income Fund deferred realized currency losses of $7,675.

The tax character of distributions paid during the years ended July 31, 2007 and
2006, was as follows:

--------------------------------------------------
FIDUCIARY FIDUCIARY
LARGE CAPITALIZATION SMALL CAPITALIZATION
GROWTH AND INCOME FUND EQUITY FUND
--------------------------------------------------
2007 2006 2007 2006
--------------------------------------------------

Distributions paid from:
Ordinary income ................ $ 908,627 $1,380,046 $ -- $ --
Long term capital gain ......... 6,037,142 7,633,274 762,125 --
--------------------------------------------------
$6,945,769 $9,013,320 $ 762,125 $ --
==================================================

At July 31, 2007, 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 SMALL
CAPITALIZATION GROWTH CAPITALIZATION
AND INCOME FUND EQUITY FUND
-------------------------------------------

Cost of investments ................................... $ 67,150,105 $ 22,475,019
===========================================
Unrealized appreciation ............................... $ 25,023,076 $ 6,636,736
Unrealized depreciation ............................... (2,189,179) (811,384)
-------------------------------------------
Net unrealized appreciation (depreciation) ............ $ 22,833,897 $ 5,825,352
===========================================
Undistributed ordinary income ......................... $ 169,298 $ --
Undistributed long term capital gains ................. 6,556,881 3,139,038
-------------------------------------------
Distributable earnings ................................ $ 6,726,179 $ 3,139,038
===========================================

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.

34 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

6. INVESTMENT TRANSACTIONS

Purchases and sales (excluding short term securities) for the year ended July
31, 2007, were as follows:

---------------------------------------
FIDUCIARY LARGE FIDUCIARY SMALL
CAPITALIZATION GROWTH CAPITALIZATION
AND INCOME FUND EQUITY FUND
---------------------------------------

Purchases ............................................. $37,688,276 $12,303,291
Sales ................................................. $46,323,543 $28,322,619

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 and administrative fees paid by the
Sweep Money Fund.

8. REGULATORY AND LITIGATION MATTERS

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

On June 23, 2006, the SEC approved the proposed plan of distribution for the
marketing support settlement, and disbursement of the settlement monies to the
designated funds, in accordance with the terms and conditions of that settlement
and plan, was completed in September 2006. The Trust did not participate in that
settlement.

On June 6, 2007, the SEC posted for public comment the proposed plan of
distribution for the market timing settlement. Once the SEC approves the final
plan of distribution, disbursements of settlement monies will be made promptly
to individuals who were shareholders of the designated funds during the relevant
period, in accordance with the terms and conditions of the settlement and plan.

Annual Report | 35

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

8. REGULATORY AND LITIGATION MATTERS (CONTINUED)

In addition, the Company, as well as most of the mutual funds within Franklin
Templeton Investments and certain current or former officers, Company directors,
fund directors, and employees, have been named in private lawsuits (styled as
shareholder class actions, or as derivative actions on behalf of either the
named funds or Franklin Resources, Inc.). The lawsuits relate to the industry
practices referenced above.

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

9. NEW ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
Interpretation of FASB Statement No. 109" ("FIN 48"), which clarifies the
accounting for uncertainty in tax positions taken or expected to be taken in a
tax return. FIN 48 provides guidance on the measurement, recognition,
classification and disclosure of tax positions, along with accounting for the
related interest and penalties. FIN 48 is effective for fiscal years beginning
after December 15, 2006, and is to be applied to all open tax years as of the
date of effectiveness. On December 22, 2006, the Securities and Exchange
Commission extended the implementation date to no later than the last net asset
value calculation in the first semi-annual reporting period in 2007. The Trust
believes the adoption of FIN 48 will have no material impact on its financial
statements.

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

36 | 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 and Fiduciary Small Capitalization Equity Fund (separate
portfolios of the Franklin Global Trust, hereafter referred to as the "Funds")
at July 31, 2007, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended and the financial highlights for 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 audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at July 31, 2007 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 17, 2007

Annual Report | 37

Franklin Global Trust

TAX DESIGNATION (UNAUDITED)

Under Section 852(b)(3)(C) of the Internal Revenue Code (Code), the Funds
designate the maximum amount allowable but no less than the following amounts as
long term capital gain dividends for the fiscal year ended July 31, 2007:

----------------------------------------
FIDUCIARY LARGE FIDUCIARY SMALL
CAPITALIZATION GROWTH CAPITALIZATION
AND INCOME FUND EQUITY FUND
----------------------------------------
$7,797,501 $3,139,056

Under Section 871(k)(2)(C) of the Code, the Fiduciary Large Capitalization
Growth and Income Fund designates the maximum amount allowable but no less than
$117,855 as a short term capital gain dividend for purposes of the tax imposed
under Section 871(a)(1)(A) of the Code for the fiscal year ended July 31, 2007.

Under Section 854(b)(2) of the Code, the Fiduciary Large Capitalization Growth
and Income Fund designates 100% of the ordinary income dividends as income
qualifying for the dividends received deduction for the fiscal year ended July
31, 2007.

Under Section 854(b)(2) of the Code, the Fiduciary Large Capitalization Growth
and Income Fund designates the maximum amount allowable but no less than
$1,318,927 as qualified dividends for purposes of the maximum rate under Section
1(h)(11) of the Code for the fiscal year ended July 31, 2007.

In January 2008, shareholders will receive Form 1099-DIV which will include
their share of qualified dividends distributed during the calendar year 2007.
Shareholders are advised to check with their tax advisors for information on the
treatment of these amounts on their individual income tax returns.

38 | Annual Report

Franklin Global Trust

Fiduciary Large Capitalization Growth and Income Fund
Fiduciary Small Capitalization Equity Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED)

A Special Meeting of Shareholders of the Trust was held at the Trust's offices,
One Franklin Parkway, San Mateo, California on March 21, 2007. The purpose of
the meeting was to elect Trustees of the Trust and to vote on the following
Proposals and Sub-Proposals: to approve an Amended and Restated Agreement and
Declaration of Trust; and to approve amendments to certain of the Fiduciary
Large Capitalization Growth and Income Fund's, and Fiduciary Small
Capitalization Equity Fund's (each, a "Fund") fundamental investment
restrictions (including three (3) Sub-Proposals). At the meeting, the following
persons were elected by the shareholders to serve as Independent Trustees of the
Trust: Harris J. Ashton, Robert F. Carlson, Sam Ginn, Edith E. Holiday, Frank W.
T. LaHaye, Frank A. Olson, Larry D. Thompson and John B. Wilson. Charles B.
Johnson and Gregory E. Johnson were elected by the shareholders to serve as
Interested Trustees. Shareholders also approved the Amended and Restated
Agreement and Declaration of Trust and amendments to certain of the Funds'
fundamental investment restrictions (including three (3) Sub-Proposals). No
other business was transacted at the meeting.

Proposal 1. The Election of Trustees:

- -----------------------------------------------------------------------------------------------------------
% OF % OF % OF % OF
OUTSTANDING VOTED OUTSTANDING VOTED
NAME FOR SHARES SHARES WITHHELD SHARES SHARES
- -----------------------------------------------------------------------------------------------------------

Harris J. Ashton ............ 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Robert F. Carlson ........... 31,255,986.306 83.526% 99.951% 15,358.451 0.041% 0.049%
Sam Ginn .................... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Edith E. Holiday ............ 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Frank W.T. LaHaye ........... 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Frank A. Olson .............. 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Larry D. Thompson ........... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
John B. Wilson .............. 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Charles B. Johnson .......... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Gregory E. Johnson .......... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%

Proposal 2. To approve an Amended and Restated Agreement and Declaration of
Trust:

- --------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................ 29,754,630.388 79.514% 95.151%
Against ............................ 5,747.015 0.015% 0.018%
Abstain ............................ 7,315.354 0.020% 0.023%
Broker non-votes ................... 1,503,652.000 4.018% 4.808%
- --------------------------------------------------------------------------------
TOTAL .............................. 31,271,344.757 83.567% 100.000%

Annual Report | 39

Franklin Global Trust

Fiduciary Large Capitalization Growth and Income Fund
Fiduciary Small Capitalization Equity Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Funds' fundamental
investment restrictions (includes three (3) Sub-Proposals):

(a) To amend the Fund's fundamental investment restriction regarding lending:

- --------------------------------------------------------------------------------
% OF % OF
FIDUCIARY LARGE CAPITALIZATION OUTSTANDING VOTED
GROWTH AND INCOME FUND SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................ 13,642,616.316 97.508% 99.384%
Against ............................ 0.000 0.000% 0.000%
Abstain ............................ 0.000 0.000% 0.000%
Broker Non-Votes ................... 84,543.000 0.604% 0.616%
- --------------------------------------------------------------------------------
TOTAL .............................. 13,727,159.316 98.112% 100.000%

- --------------------------------------------------------------------------------
% OF % OF
FIDUCIARY SMALL CAPITALIZATION OUTSTANDING VOTED
EQUITY FUND SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................ 1,418,859.404 95.210% 97.701%
Against ............................ 0.000 0.000% 0.000%
Abstain ............................ 0.000 0.000% 0.000%
Broker Non-Votes ................... 33,386.000 2.240% 2.299%
- --------------------------------------------------------------------------------
TOTAL .............................. 1,452,245.404 97.450% 100.000%

(b) To amend the Fund's fundamental investment restriction regarding investments
in real estate:

40 | Annual Report

Franklin Global Trust

Fiduciary Large Capitalization Growth and Income Fund
Fiduciary Small Capitalization Equity Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Funds' fundamental
investment restrictions (includes three (3) Sub-Proposals): (CONTINUED)

- --------------------------------------------------------------------------------
% OF % OF
FIDUCIARY SMALL CAPITALIZATION OUTSTANDING VOTED
EQUITY FUND SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................ 1,413,858.404 94.875% 97.357%
Against ............................ 5,001.000 0.335% 0.344%
Abstain ............................ 0.000 0.000% 0.000%
Broker Non-Votes ................... 33,386.000 2.240% 2.299%
- --------------------------------------------------------------------------------
TOTAL .............................. 1,452,245.404 97.450% 100.000%

Annual Report | 41

Franklin Global Trust

BOARD MEMBERS AND OFFICERS

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

INDEPENDENT BOARD MEMBERS

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

HARRIS J. ASHTON (1932) Trustee Since 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 (1928) Trustee Since 2000 121 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice President, senior member and past President, Board of Administration, California Public Employees Retirement Systems (CALPERS);
and FORMERLY, member and Chairman of the Board, Sutter Community Hospitals; member, Corporate Board, Blue Shield of California; and
Chief Counsel, California Department of Transportation.
- ------------------------------------------------------------------------------------------------------------------------------------
SAM GINN (1937) Trustee Since March 2007 121 Director, Chevron Corporation (global
One Franklin Parkway energy company) and ICO Global
San Mateo, CA 94403-1906 Communications (Holdings) Limited
(satellite company).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Private investor; and FORMERLY, Chairman of the Board, Vodafone AirTouch (wireless company), PLC; Chairman of the Board and Chief
Executive Officer, AirTouch Communications (cellular communications) (1993-1998) and Pacific Telesis Groups (telephone holding
company) (1988-1994).
- ------------------------------------------------------------------------------------------------------------------------------------
EDITH E. HOLIDAY (1952) Trustee Since 2000 140 Director, Hess Corporation (formerly,
One Franklin Parkway Amerada Hess Corporation) (exploration
San Mateo, CA 94403-1906 and refining of oil and gas), H.J.
Heinz Company (processed foods and
allied products), RTI International
Metals, Inc. (manufacture and
distribution of titanium), Canadian
National Railway (railroad) and White
Mountains Insurance Group, Ltd.
(holding company).

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

42 | Annual Report

FRANK W.T. LAHAYE (1929) Trustee Since 2000 121 Director, Center for Creative Land
One Franklin Parkway Recycling (brownfield 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).
- ------------------------------------------------------------------------------------------------------------------------------------
FRANK A. OLSON (1932) Trustee Since 2005 140 Director, Hess Corporation (formerly,
One Franklin Parkway Amerada Hess Corporation) (exploration
San Mateo, CA 94403-1906 and refining of oil and gas) and
Sentient Jet (private jet service).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Chairman Emeritus, The Hertz Corporation (since 2000) (Chairman of the Board (1980-2000) and Chief Executive Officer (1977-1999));
and FORMERLY, Chairman of the Board, President and Chief Executive Officer, UAL Corporation.
- ------------------------------------------------------------------------------------------------------------------------------------
LARRY D. THOMPSON (1945) Trustee Since March 2007 140 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Senior Vice President - Government Affairs, General Counsel and Secretary, PepsiCo, Inc. (consumer products); and FORMERLY,
Director, Delta Airlines (aviation) (2003-2005) and Providian Financial Corp. (1997-2001); Senior Fellow of The Brookings
Institution (2003-2004); Visiting Professor, University of Georgia School of Law (2004); and Deputy Attorney General, U.S.
Department of Justice (2001-2003).
- ------------------------------------------------------------------------------------------------------------------------------------
JOHN B. WILSON (1959) Trustee Since 2006 121 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President and Founder, Hyannis Port Capital, Inc. (real estate and private equity investing); serves on private and non-profit
boards; and FORMERLY, Chief Operating Officer and Executive Vice President, Gap, Inc. (retail) (1996-2000); Chief Financial Officer
and Executive Vice President - Finance Strategy, Staples, Inc. (office supplies) (1992-1996); Executive Vice President - Corporate
Planning, Northwest Airlines, Inc. (airlines) (190-1992); Vice President and Partner, Bain & Company (consulting firm) (1986-1990).
- ------------------------------------------------------------------------------------------------------------------------------------

INTERESTED BOARD MEMBERS AND OFFICERS

**CHARLES B. JOHNSON (1933) 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.; Director, Templeton Worldwide, 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 42
of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 43

**GREGORY E. JOHNSON (1961) Trustee Since March 2007 91 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Director, President and Chief Executive Officer, Franklin Resources, Inc.; President, Templeton Worldwide, Inc.; Director, Templeton
Asset Management Ltd.; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin
Resources, Inc. and of 33 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JAMES M. DAVIS (1952) Chief Chief Compliance Not Applicable Not Applicable
One Franklin Parkway Compliance Officer since
San Mateo, CA 94403-1906 Officer and 2004 and Vice
Vice President President - AML
- AML Compliance since
Compliance 2006

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

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice President, Franklin Templeton Services, LLC; officer of 30 of the investment companies in Franklin Templeton Investments; and
FORMERLY, Director and member of Audit and Valuation Committees, Runkel Funds, Inc. (2003-2004); Assistant Treasurer of most of the
investment companies in Franklin Templeton Investments (1997-2003); and Vice President, Franklin Templeton Services, LLC
(1997-2003).
- ------------------------------------------------------------------------------------------------------------------------------------
JIMMY D. GAMBILL (1947) Senior Vice Since 2002 Not Applicable Not Applicable
500 East Broward Blvd. President and
Suite 2100 Chief
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 some of the other
subsidiaries of Franklin Resources, Inc. and of 46 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

44 | Annual Report

DAVID P. GOSS (1947) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Senior Associate General Counsel, Franklin Templeton Investments; officer and director of one of the subsidiaries of Franklin
Resources, Inc.; and officer of 46 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
EDWARD B. JAMIESON (1948) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President, Chief Investment Officer and Director, Franklin Advisers, Inc.; Executive Vice President, Franklin Templeton
Institutional, LLC; and officer and/or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc.
and of four of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
RUPERT H. JOHNSON, JR. (1940) President and President since Not Applicable Not Applicable
One Franklin Parkway Chief 2000 and Chief
San Mateo, CA 94403-1906 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.; Director, Franklin Advisers, Inc. and
Templeton Worldwide, Inc.; Senior Vice President, Franklin Advisory Services, LLC; and officer and/or director or trustee, as the
case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin
Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
CHRISTOPHER J. MOLUMPHY (1962) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Executive Vice President, Franklin Adviser, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of
six of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
KAREN L. SKIDMORE (1952) Vice President Since 2006 Not Applicable Not Applicable
One Franklin Parkway and Secretary
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Senior Associate General Counsel, Franklin Templeton Investments; and officer of 30 of the investment companies in Franklin
Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 45

CRAIG S. TYLE (1960) Vice President Since 2005 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
General Counsel and Executive Vice President, Franklin Resources, Inc.; officer of some of the other subsidiaries of Franklin
Resources, Inc. and of 46 of the investment companies in Franklin Templeton Investments; and FORMERLY, Partner, Shearman & Sterling,
LLP (2004-2005); and General Counsel, Investment Company Institute (ICI) (1997-2004).
- ------------------------------------------------------------------------------------------------------------------------------------
GALEN G. VETTER (1951) Chief Financial Since 2004 Not Applicable Not Applicable
500 East Broward Blvd. Officer and
Suite 2100 Chief
Fort Lauderdale, FL 33394-3091 Accounting
Officer

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

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

** Charles B. Johnson is considered to be an interested person of the Trust
under the federal securities laws due to his position as officer and director
and major shareholder of Franklin Resources, Inc. (Resources), which is the
parent company of the Trust's investment manager and distributor. Gregory E.
Johnson is considered to be an interested person of the Trust under the federal
securities laws due to his position as an officer and director of Resources.

Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are brothers and the
father and uncle, respectively, of Gregory E. Johnson.

Note 2: Officer information is current as of the date of this report. It is
possible that after this date, information about officers may change.

Note 3: Prior to July 31, 2007, Harmon E. Burns, S. Joseph Fortunato, Rupert H.
Johnson, Jr. and Gordon S. Macklin ceased to be trustees of the Trust.

THE SARBANES-OXLEY ACT OF 2002 AND RULES ADOPTED BY THE SECURITIES AND EXCHANGE
COMMISSION REQUIRE THE FUND TO DISCLOSE WHETHER THE FUND'S AUDIT COMMITTEE
INCLUDES AT LEAST ONE MEMBER WHO IS AN AUDIT COMMITTEE FINANCIAL EXPERT WITHIN
THE MEANING OF SUCH ACT AND RULES. THE FUND'S BOARD OF TRUSTEES HAS DETERMINED
THAT THERE IS AT LEAST ONE SUCH FINANCIAL EXPERT ON THE AUDIT COMMITTEE AND HAS
DESIGNATED JOHN B. WILSON AS ITS AUDIT COMMITTEE FINANCIAL EXPERT. THE BOARD
BELIEVES THAT MR. WILSON QUALIFIES AS SUCH AN EXPERT IN VIEW OF HIS EXTENSIVE
BUSINESS BACKGROUND AND EXPERIENCE, INCLUDING SERVICE AS CHIEF FINANCIAL OFFICER
OF STAPLES, INC. FROM 1992 TO 1996. MR. WILSON HAS BEEN A MEMBER AND CHAIRMAN OF
THE FUND'S AUDIT COMMITTEE SINCE 2006. AS A RESULT OF SUCH BACKGROUND AND
EXPERIENCE, THE BOARD OF TRUSTEES BELIEVES THAT MR. WILSON HAS ACQUIRED AN
UNDERSTANDING OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND FINANCIAL
STATEMENTS, THE GENERAL APPLICATION OF SUCH PRINCIPLES IN CONNECTION WITH THE
ACCOUNTING ESTIMATES, ACCRUALS AND RESERVES, AND ANALYZING AND EVALUATING
FINANCIAL STATEMENTS THAT PRESENT A BREADTH AND LEVEL OF COMPLEXITY OF
ACCOUNTING ISSUES GENERALLY COMPARABLE TO THOSE OF THE FUND, AS WELL AS AN
UNDERSTANDING OF INTERNAL CONTROLS AND PROCEDURES FOR FINANCIAL REPORTING AND AN
UNDERSTANDING OF AUDIT COMMITTEE FUNCTIONS. MR. WILSON 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 1-800/845-4514 TO REQUEST THE SAI.

46 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

At a meeting held February 27, 2007, the Board of Trustees (Board), including a
majority of non-interested or independent Trustees, approved renewal of the
investment management agreements for each of the separate funds within Franklin
Global Trust (Fund(s)). In reaching this decision, the Board took into account
information furnished throughout the year at regular Board meetings, as well as
information prepared specifically in connection with the annual renewal review
process. Information furnished and discussed throughout the year included
investment performance reports and related financial information for each Fund,
as well as periodic reports on shareholder services, legal, compliance, pricing,
brokerage commissions and execution and other services provided by the
Investment Manager (Manager) and its affiliates. Information furnished
specifically in connection with the renewal process included a report for each
Fund prepared by Lipper, Inc. (Lipper), an independent organization, as well as
a Fund profitability analysis report prepared by management. The Lipper report
compared a Fund's investment performance and expenses with those of other mutual
funds deemed comparable to the Fund as selected by Lipper. The Fund
profitability analysis report discussed the profitability to Franklin Templeton
Investments from its overall U.S. fund operations, as well as on an individual
fund-by-fund basis. Included with such profitability analysis report was
information on a fund-by-fund basis listing portfolio managers and other
accounts they manage, as well as information on management fees charged by the
Manager and its affiliates including management's explanation of differences
where relevant and a three-year expense analysis with an explanation for any
increase in expense ratios. Additional material accompanying such report was a
memorandum prepared by management describing project initiatives and capital
investments relating to the services provided to the Fund by the Franklin
Templeton Investments organization, as well as a memorandum relating to
economies of scale and a comparative analysis concerning transfer agent fees
charged each Fund.

In considering such materials, the independent Trustees received assistance and
advice from and met separately with independent counsel. While the investment
management agreements for all Funds were considered at the same Board meeting,
the Board dealt with each Fund separately. In approving continuance of the
investment management agreement for each Fund, the Board, including a majority
of independent Trustees, determined that the existing management fee structure
was fair and reasonable and that continuance of the investment management
agreement was in the best interests of the Fund and its shareholders. While
attention was given to all information furnished, the following discusses some
primary factors relevant to the Board's decision.

NATURE, EXTENT AND QUALITY OF SERVICES. The Board was satisfied with the nature
and quality of the overall services provided by the Manager and its affiliates
to the Funds and their shareholders. In addition to investment performance and
expenses discussed later, the Board's opinion was based, in part, upon periodic
reports furnished them showing that the investment policies and restrictions for
each Fund were consistently complied with as well as other reports periodically
furnished the Board covering matters such as the compliance of portfolio
managers and other management personnel with the code of ethics adopted
throughout the Franklin Templeton fund complex, the adherence to fair value
pricing procedures established by the Board, and the accuracy

Annual Report | 47

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

of net asset value calculations. The Board also noted the extent of benefits
provided Fund shareholders from being part of the Franklin Templeton family of
funds, including the right to exchange investments between the same class of
funds without a sales charge, the ability to reinvest Fund dividends into other
funds and the right to combine holdings in other funds to obtain a reduced sales
charge. Favorable consideration was given to management's continuous efforts and
expenditures in establishing back-up systems and recovery procedures to function
in the event of a natural disaster, it being noted that such systems and
procedures had functioned smoothly during the Florida hurricanes and blackouts
experienced in recent years. Among other factors taken into account by the Board
were the Manager's best execution trading policies, including a favorable report
by an independent portfolio trading analytical firm. Consideration was also
given to the experience of the Fund's portfolio management team, the number of
accounts managed and general method of compensation. In this latter respect, the
Board noted that a primary factor in management's determination of a portfolio
manager's bonus compensation was the relative investment performance of the
funds he or she managed and that a portion of such bonus was required to be
invested in a predesignated list of funds within such person's fund management
area so as to be aligned with the interests of Fund shareholders. The Board also
took into account the quality of transfer agent and shareholder services
provided Fund shareholders by an affiliate of the Manager, noting continuing
expenditures by management to increase and improve the scope of such services,
periodic favorable reports on such service conducted by third parties, the high
industry ranking given to the Franklin Templeton website, and the firsthand
experience of individual Board members who deal with the shareholder services
department in their capacities as shareholders in one or more of the various
Franklin Templeton funds.

INVESTMENT PERFORMANCE. The Board placed significant emphasis on the investment
performance of each Fund in view of its importance to shareholders. While
consideration was given to performance reports and discussions with portfolio
managers at Board meetings throughout the year, particular attention in
assessing performance was given to the Lipper reports furnished for the
agreement renewals. The Lipper reports prepared for each individual Fund showed
the investment performance of the Fund in comparison to a performance universe
selected by Lipper. Comparative performance for each Fund was shown for the
one-year period ended December 31, 2006, and for additional periods ended that
date depending on when a particular Fund commenced operations. Investment
performance was shown on a total return basis for each Fund. The following
summarizes the performance results for each of the Funds and the Board's view of
such performance.

FIDUCIARY LARGE CAPITALIZATION GROWTH AND INCOME FUND - The performance universe
for this Fund consisted of the Fund and all retail and institutional large-cap
core funds as selected by Lipper. The Lipper report showed the Fund's total
return for the one-year period to be in the second-lowest quintile of such
performance universe, and on an annualized basis to be in the middle quintile of
such universe for each of the previous three- and five-year periods. The Board
found such performance to be acceptable, noting that the Fund's return for the
one-year period as shown in the Lipper report exceeded 11%.

48 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

FIDUCIARY SMALL CAPITALIZATION EQUITY FUND - The performance universe for this
Fund consisted of the Fund and all retail and institutional small-cap growth
funds as selected by Lipper. The Lipper report showed this Fund's total return
for the one-year period to be in the second-highest quintile of such performance
universe, and on an annualized basis to be in the second-lowest quintile for the
previous three-year period, the lowest quintile for the previous five-year
period, and the middle quintile of such performance universe for the previous
10-year period. The Board noted changes in the structure of the Fund's portfolio
team made in recent years and other actions taken to improve such performance,
which it found to be acceptable.

COMPARATIVE EXPENSES. Consideration was given to the management fee and total
expense ratios of each Fund compared with those of a group of funds selected by
Lipper as its appropriate Lipper expense group. Prior to making such
comparisons, the Board relied upon a survey showing that the scope of management
advisory services covered under a Fund's investment management agreement was
similar to those provided by fund managers to other mutual fund groups. In
reviewing comparative costs, emphasis was given to each Fund's management fee in
comparison with the contractual investment management fee that would have been
charged by other funds within its Lipper expense group assuming they were
similar in size to the Fund, as well as the actual total expenses of the Fund in
comparison with those of its Lipper expense group. The Lipper contractual
investment management fee analysis includes the advisory and administrative fees
directly charged to each Fund as being part of the management fee. The
contractual investment management fee ratios for each of Fiduciary Large
Capitalization Growth and Income Fund and Fiduciary Small Capitalization Equity
Fund were in the most expensive quintile of their Lipper expense groups, but
their total expenses were in each case below the median of their respective
Lipper expense groups. The Board found the expenses of these Funds to be
acceptable.

MANAGEMENT PROFITABILITY. The Board also considered the level of profits
realized by the Manager and its affiliates in connection with the operation of
the Funds. In this respect, the Board reviewed the Fund profitability analysis
that addresses the overall profitability of Franklin Templeton's U.S. fund
business, as well as its profits in providing management and other services to
each of the individual funds. Specific attention was given to the methodology
followed in allocating costs to each Fund, it being recognized that allocation
methodologies are inherently subjective and various allocation methodologies may
each be reasonable while producing different results. In this respect, the Board
noted that, while being continuously refined and reflecting changes in the
Manager's own cost accounting, the allocation methodology was consistent with
that followed in profitability report presentations for the Funds made in prior
years and that the Funds' independent registered public accounting firm had been
engaged by the Manager to perform certain procedures on a biennial basis,
specified and approved by the Manager and the Funds' Board solely for their
purposes and use in reference to the profitability analysis. In reviewing and
discussing such analysis, management discussed with the Board its belief that
costs incurred in establishing the infrastructure necessary for the type of
mutual fund operations conducted by the Manager and its affiliates may not be
fully reflected in the expenses allocated to each Fund in determining its
profitability, as

Annual Report | 49

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

well as the fact that the level of profits, to a certain extent, reflected
operational cost savings and efficiencies initiated by management. The Board
also took into account management's expenditures in improving shareholder
services provided the Funds, as well as the need to meet additional regulatory
and compliance requirements resulting from the Sarbanes-Oxley Act and recent SEC
requirements. In addition, the Board considered a third-party study comparing
the profitability of the Manager's parent on an overall basis as compared to
other publicly held managers broken down to show profitability from management
operations exclusive of distribution expenses, as well as profitability
including distribution expenses. The Board also considered the extent to which
the Manager and its affiliates might derive ancillary benefits from fund
operations, including potential benefits resulting from allocation of fund
brokerage and the use of "soft" commission dollars to pay for research. Based
upon its consideration of all these factors, the Board determined that the level
of profits realized by the Manager and its affiliates from providing services to
each Fund was not excessive in view of the nature, quality and extent of
services provided.

ECONOMIES OF SCALE. The Board also considered whether economies of scale are
realized by the Manager as the Funds grow larger and the extent to which this is
reflected in the level of management fees charged. While recognizing that any
precise determination is inherently subjective, the Board noted that based upon
the Fund profitability analysis, it appears that as some funds get larger, at
some point economies of scale do result in the Manager realizing a larger profit
margin on management services provided such a fund. The Funds each have a fixed
combined management and administrative fee at all asset levels amounting to
0.95% in the case of Fiduciary Large Capitalization Growth and Income Fund and
1.2% in the case of Fiduciary Small Capitalization Equity Fund. In considering
whether economies of scale might exist so as to warrant fee breakpoints for
these Funds, the Board took into account the size of each Fund, which in each
case was below $100 million at December 31, 2006, as well as the fact that, as
shown in their respective Lipper reports, each Fund had comparatively low
expenses for non-management services provided them that included transfer agent
and shareholder services furnished by an affiliate of the Manager. The Board
believes the present fee structures under the investment management agreement
for each of these Funds are appropriate, but intends to monitor future growth to
determine the advisability of providing fee breakpoints at some level of assets.

PROXY VOTING POLICIES AND PROCEDURES

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

50 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

QUARTERLY STATEMENT OF INVESTMENTS

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

Annual Report | 51

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[GRAPHIC OMITTED]
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[LOGO]
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FGT
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FUNDS
-------

FGT FUNDS

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

Fiduciary Large Capitalization Growth and Income Fund
Cusip 353533870

Fiduciary Small Capitalization Equity Fund
Cusip 353533862

Authorized for distribution only when accompanied or preceded by a current FGT
Funds prospectus. Investors should carefully consider a fund's investment goals,
risks, charges and expenses before investing. The prospectus contains this and
other information. Please carefully read the prospectus before you invest or
send money.

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. Fiduciary
One Franklin Parkway --------------------
San Mateo, CA 94403-1906 Trust
--------------------
INVESTOR/SHAREHOLDER SERVICES International
--------------------
1-800/845-4514
--------------------
FGT1 A2007 09/07
--------------------

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[GRAPHIC OMITTED]

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ANNUAL REPORT 07 31 2007
- --------------------------------------------------------------------------------

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

FRANKLIN GLOBAL TRUST

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

Franklin Templeton Core Fixed Income Fund

Franklin Templeton Core Plus Fixed Income Fund

[LOGO](R)
FRANKLIN TEMPLETON
INSTITUTIONAL

Contents

ANNUAL REPORT

Economic and Market Overview .............................................. 1

Franklin Templeton Core Fixed Income Fund ................................. 2

Franklin Templeton Core Plus Fixed Income Fund ............................ 9

Financial Highlights and Statements of Investments ........................ 16

Financial Statements ...................................................... 28

Notes to Financial Statements ............................................. 31

Report of Independent Registered Public Accounting Firm ................... 42

Meeting of Shareholders ................................................... 43

Board Members and Officers ................................................ 46

Shareholder Information ................................................... 51

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

Annual Report

Economic and Market Overview

The U.S. economy was resilient over the 12 months ended July 31, 2007. Although
growth slowed in the first quarter of 2007 as a weakening housing market and
moderating profit growth dampened economic expansion, a tight labor market and
higher personal incomes helped support the consumer. Despite ongoing housing
market weakness, economic growth rebounded in the second quarter and was
supported by federal defense spending, accelerating exports and declining
imports, greater business inventory investment and increased spending for
nonresidential structures.

Oil prices continued to be volatile though inflation remained relatively
subdued. However, headline, or overall, inflation and core inflation, which
excludes food and energy costs, experienced some upward pressure. In July 2007,
the headline Consumer Price Index (CPI) reported a 12-month rise of 2.4%, while
core CPI increased 2.2%. 1

The Federal Reserve Board (Fed) kept the federal funds target rate at 5.25%
during the reporting period. In terms of an overall bias, the Fed continued to
diligently assess economic data saying that growth remained relatively stable
"despite the ongoing adjustment in the housing sector." At period-end, the
financial markets generally expected the Fed to lower its target rate by
calendar year-end.

The 10-year Treasury note yield was range bound during the 12-month period,
beginning at 4.99% and ending the period at 4.78%. The intermediate portion of
the yield curve often reflects market expectations of the future direction of
inflation. A relatively moderate inflation environment, combined with modest
growth and profitability projections, contributed to this overall trend in
interest rates.

1. Source: Bureau of Labor Statistics.

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

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

Annual Report | 1

Franklin Templeton Core Fixed Income Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin Templeton Core Fixed Income Fund
seeks total return by investing predominantly in debt securities of varying
maturities. The Fund invests mainly 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.

- --------------------------------------------------------------------------------
PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE CALL A FRANKLIN TEMPLETON INSTITUTIONAL SERVICES
REPRESENTATIVE AT 1-800/321-8563 FOR MOST RECENT MONTH-END PERFORMANCE.
- --------------------------------------------------------------------------------

This annual report for Franklin Templeton Core Fixed Income Fund covers the
fiscal year ended July 31, 2007.

PERFORMANCE OVERVIEW

Franklin Templeton Core Fixed Income Fund posted a +4.44% cumulative total
return for the 12-month period ended July 31, 2007. The Fund under-performed its
benchmark, the Lehman Brothers (LB) U.S. Aggregate Index, which returned +5.58%
during the same period.1 You can find more of the Fund's performance data in the
Performance Summary beginning on page 5.

INVESTMENT STRATEGY

We allocate our investments among the various types of debt securities available
in the Fund's core investments, based on our assessment of the U.S. market,
industry and issuer conditions, and the opportunities presented within the
various sectors. We use a top-down/bottom-up selection process and rely on both
internal and external research to identify individual securities. Our credit
research process focuses on bottom-up credit selection that relies on our
independent investment analysis to evaluate the issuer's creditworthiness. We
consider a variety of factors, including the issuer's historical balance sheets,
income and cash flow statements, as well as projected earnings and the need for
future borrowings.

1. Source: Standard & Poor's Micropal. The LB 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 rated investment grade (Baa3 or better) by Moody's
Investors Service. They must also be dollar denominated and nonconvertible.
Total return includes price appreciation/depreciation and income as a percentage
of the original investment. The index is rebalanced monthly by market
capitalization. One cannot invest directly in an index, nor is an index
representative of the Fund's portfolio.

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 17.

2 | Annual Report

MANAGER'S DISCUSSION

Early in the reporting period, we believed fixed income markets were positioned
for continued corporate earnings growth while the U.S. economy showed mixed
signals for sustained expansion. Unemployment was low and in our view, job
creation moved at a steady enough pace to help stem fears of inflation and
balance the needs of an expanding economy. At the time, however, our analysis
indicated the economy was likely to slow further as a result of a continued
weakening U.S. housing market as home sales and median prices began to
decelerate. This led us to generally maintain the portfolio's duration beyond
that of its benchmark, the LB U.S. Aggregate Index, seeking to position the
portfolio to benefit if the yield curve flattened. As the period progressed,
data pointed to a modest pickup in the economy, which, along with potential
inflationary pressures, caused us to generally move the portfolio's duration to
a more neutral stance. Since the end of 2006, we generally kept the portfolio's
duration close to neutral, as we viewed the risks of sharp interest rate moves
as fairly balanced. Overall, our active management of portfolio duration and
yield curve positioning contributed positively to relative returns as the yield
curve flattened after being slightly inverted.

We believed that careful sector and security selection in the fixed income
market could enable us to find attractive opportunities. During the reporting
period, we considered the investment-grade corporate bond sector expensive and
its yield compensation less than adequate. While we continued to find select
issues that offered good relative value, our underweighted exposure to the
sector for most of the period hurt relative Fund performance, as corporate yield
spreads over Treasuries narrowed during most of the period.

During the year under review, we remained focused on finding value opportunities
across the bond market. As previously stated, an underweighting in spread
products for most of the period generally detracted from returns as yield
spreads tightened from already-low levels during the reporting period. However,
based on valuation, we moved back and forth between an overweighted and
underweighted position in MBS throughout the year under review. At the end of
July, the portfolio was overweighted in both investment-grade corporate and MBS
sectors relative to the LB U.S. Aggregate Index. In addition, we maintained a
cautious stance on the fixed income markets as recent developments in the
subprime mortgage sector began to put pressure on the overall market.

PORTFOLIO BREAKDOWN
Franklin Templeton Core Fixed Income Fund Based on Total Investments as of
7/31/07

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

Mortgage-Backed Securities 31.9%
Thrifts & Mortgage Finance 13.9%
Diversified Financial Services 6.2%
U.S. Government & Agency Securities 6.1%
Consumer Finance 4.3%
Diversified Telecommunication Services 2.4%
Insurance 2.3%
Oil, Gas & Consumable Fuels 2.0%
Capital Markets 1.9%
Commercial Banks 1.4%
Media 1.2%
Foreign Government & Agency Securities 0.7%
Other 1.3%
Short-Term Investments 24.4%

Annual Report | 3

TOP 10 HOLDINGS
Franklin Templeton Core Fixed Income Fund 7/31/07

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ISSUE/ISSUER % OF TOTAL
SECTOR INVESTMENTS
- --------------------------------------------------------------------------------
FHLMC Gold 30 Year 21.7%
MORTGAGE-BACKED SECURITIES
- --------------------------------------------------------------------------------
FNMA 13.0%
MORTGAGE-BACKED SECURITIES/
U.S. GOVERNMENT & AGENCY SECURITIES
- --------------------------------------------------------------------------------
U.S. Treasury Note 7.3%
U.S. GOVERNMENT & AGENCY SECURITIES
- --------------------------------------------------------------------------------
Citigroup/Deutsche Bank Commercial
Mortgage Trust 5.0%
THRIFTS & MORTGAGE FINANCE
- --------------------------------------------------------------------------------
FHLB 4.4%
U.S. GOVERNMENT & AGENCY SECURITIES
- --------------------------------------------------------------------------------
SLM Student Loan Trust 3.1%
DIVERSIFIED FINANCIAL SERVICES
- --------------------------------------------------------------------------------
Citibank Credit Card Issuance Trust 2.8%
THRIFTS & MORTGAGE FINANCE
- --------------------------------------------------------------------------------
Residential Capital LLC 1.9%
CONSUMER FINANCE
- --------------------------------------------------------------------------------
American Express Credit Account
Master Trust 1.6%
CONSUMER FINANCE
- --------------------------------------------------------------------------------
Household Credit Card Master Note
Trust I 1.6%
THRIFTS & MORTGAGE FINANCE
- --------------------------------------------------------------------------------

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

[PHOTO OMITTED] /s/ Michael Materasso

Michael Materasso
Executive Vice President of Franklin Templeton
Institutional, LLC (FT Institutional)

[PHOTO OMITTED] /s/ Warren Keyser

Warren Keyser
Portfolio Manager of FT Institutional

[PHOTO OMITTED] /s/ Robert Waldner

Robert Waldner
Portfolio Manager of FT Institutional

Portfolio Management Team
Franklin Templeton Core Fixed Income Fund

4 | Annual Report

Performance Summary as of 7/31/07

FRANKLIN TEMPLETON CORE FIXED INCOME FUND

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

PRICE AND DISTRIBUTION INFORMATION

- --------------------------------------------------------------------------------
SYMBOL: FCFIX CHANGE 7/31/07 7/31/06
- --------------------------------------------------------------------------------
Net Asset Value (NAV) -$0.05 $9.57 $9.62
- --------------------------------------------------------------------------------
DISTRIBUTIONS (8/1/06-7/31/07)
- --------------------------------------------------------------------------------
Dividend Income $0.4745
- --------------------------------------------------------------------------------

PERFORMANCE 1

THE FUND MAY CHARGE A 2% FEE ON SHARES REDEEMED WITHIN SEVEN DAYS OF PURCHASE.

- ------------------------------------------------------------------------------------------
1-YEAR 3-YEAR INCEPTION (8/29/03)
- ------------------------------------------------------------------------------------------

Cumulative Total Return 2 +4.44% +11.05% +15.45%
- ------------------------------------------------------------------------------------------
Average Annual Total Return 3 +4.44% +3.55% +3.73%
- ------------------------------------------------------------------------------------------
Value of $10,000 Investment 4 $10,444 $11,105 $11,545
- ------------------------------------------------------------------------------------------
Avg. Ann. Total Return (6/30/07) 5 +5.74% +3.82% +3.81%
- ------------------------------------------------------------------------------------------
Total Annual Operating Expenses 6
- ------------------------------------------------------------------------------------------
Without Waiver 0.74%
- ------------------------------------------------------------------------------------------
With Waiver 0.45%
- ------------------------------------------------------------------------------------------

PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. FOR MOST RECENT MONTH-END PERFORMANCE, PLEASE CALL A FRANKLIN
TEMPLETON INSTITUTIONAL SERVICES REPRESENTATIVE AT 1-800/321-8563.

THE FUND'S MANAGER AND ADMINISTRATOR HAVE CONTRACTUALLY AGREED TO LIMIT FUND
EXPENSES SO THAT TOTAL ANNUAL FUND OPERATING EXPENSES DO NOT EXCEED 0.45% (OTHER
THAN CERTAIN NON-ROUTINE EXPENSES) UNTIL 11/30/08.

Annual Report | 5

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT 1

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

AVERAGE ANNUAL TOTAL RETURN

- ---------------------------------------------
7/31/07
- ---------------------------------------------
1-Year +4.44%
- ---------------------------------------------
3-Year +3.55%
- ---------------------------------------------
Since Inception (8/29/03) +3.73%
- ---------------------------------------------

8/29/03-7/31/07

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

Franklin Templeton LB U.S. Aggregate
Calendar Month Core Fixed Income Fund Index 7
Aug-03 $ 10,000 $ 10,004
Sep-03 $ 10,260 $ 10,269
Oct-03 $ 10,200 $ 10,174
Nov-03 $ 10,250 $ 10,198
Dec-03 $ 10,345 $ 10,302
Jan-04 $ 10,426 $ 10,385
Feb-04 $ 10,517 $ 10,497
Mar-04 $ 10,608 $ 10,575
Apr-04 $ 10,305 $ 10,301
May-04 $ 10,253 $ 10,259
Jun-04 $ 10,315 $ 10,318
Jul-04 $ 10,396 $ 10,420
Aug-04 $ 10,563 $ 10,619
Sep-04 $ 10,605 $ 10,648
Oct-04 $ 10,678 $ 10,737
Nov-04 $ 10,625 $ 10,651
Dec-04 $ 10,723 $ 10,749
Jan-05 $ 10,787 $ 10,817
Feb-05 $ 10,744 $ 10,753
Mar-05 $ 10,691 $ 10,698
Apr-05 $ 10,841 $ 10,842
May-05 $ 10,939 $ 10,959
Jun-05 $ 10,993 $ 11,020
Jul-05 $ 10,929 $ 10,919
Aug-05 $ 11,060 $ 11,059
Sep-05 $ 10,951 $ 10,945
Oct-05 $ 10,870 $ 10,859
Nov-05 $ 10,914 $ 10,907
Dec-05 $ 11,029 $ 11,010
Jan-06 $ 11,040 $ 11,011
Feb-06 $ 11,084 $ 11,047
Mar-06 $ 10,961 $ 10,939
Apr-06 $ 10,916 $ 10,919
May-06 $ 10,893 $ 10,907
Jun-06 $ 10,916 $ 10,931
Jul-06 $ 11,054 $ 11,078
Aug-06 $ 11,226 $ 11,248
Sep-06 $ 11,330 $ 11,347
Oct-06 $ 11,402 $ 11,422
Nov-06 $ 11,530 $ 11,554
Dec-06 $ 11,454 $ 11,487
Jan-07 $ 11,454 $ 11,483
Feb-07 $ 11,608 $ 11,660
Mar-07 $ 11,608 $ 11,660
Apr-07 $ 11,685 $ 11,723
May-07 $ 11,602 $ 11,634
Jun-07 $ 11,542 $ 11,600
Jul-07 $ 11,545 $ 11,696

ENDNOTES

INTEREST RATE MOVEMENTS AND MORTGAGE PREPAYMENT RATES MAY AFFECT THE FUND'S
SHARE PRICE AND YIELD. BOND PRICES, AND THUS THE FUND'S SHARE PRICE, GENERALLY
MOVE IN THE OPPOSITE DIRECTION OF INTEREST RATES. THE FUND'S INVESTMENTS IN
FOREIGN COMPANIES, INCLUDING EMERGING MARKETS, CAN INVOLVE SPECIAL RISKS
INCLUDING CURRENCY VOLATILITY AND POLITICAL, ECONOMIC AND REGULATORY
UNCERTAINTY. THE FUND'S PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE MAIN
INVESTMENT RISKS.

1. The Fund's manager and administrator have contractually agreed to limit Fund
expenses so that total annual Fund operating expenses do not exceed 0.45% (other
than certain non-routine expenses) until 11/30/08. If the manager and
administrator had not taken this action, the Fund's total returns would have
been lower.

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

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

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

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

6. Figures are as stated in the Fund's prospectus current as of the date of this
report.

7. Source: Standard & Poor's Micropal. The LB 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 rated investment grade (Baa3 or better) by Moody's
Investors Service. They must also be dollar denominated and nonconvertible.
Total return includes price appreciation/depreciation and income as a percentage
of the original investment. The index is rebalanced monthly by market
capitalization.

6 | Annual Report

Your Fund's Expenses

FRANKLIN TEMPLETON 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) of the table provides actual account values and
expenses. The "Ending Account Value" is derived from the Fund's actual return,
which includes the effect of Fund expenses.

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

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

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

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

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

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Annual Report | 7

Your Fund's Expenses (CONTINUED)

- -------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 2/1/07 VALUE 7/31/07 PERIOD* 2/1/07-7/31/07
- -------------------------------------------------------------------------------------------------------

Actual $ 1,000 $ 1,007.90 $ 2.24
- -------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $ 1,000 $ 1,022.56 $ 2.26
- -------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio, net of expense waivers, of
0.45%, multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.

8 | Annual Report

Franklin Templeton Core Plus Fixed Income Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin Templeton Core Plus Fixed Income
Fund seeks total return by investing predominantly in debt securities of varying
maturities. The Fund will normally invest about 70% of its net assets in core
sectors of investment-grade U.S. dollar-denominated debt securities, with a
focus on U.S. government securities, mortgage- and asset-backed securities, and
corporate debt securities.

- --------------------------------------------------------------------------------
PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE CALL A FRANKLIN TEMPLETON INSTITUTIONAL SERVICES
REPRESENTATIVE AT 1-800/321-8563 FOR MOST RECENT MONTH-END PERFORMANCE.
- --------------------------------------------------------------------------------

This annual report for Franklin Templeton Core Plus Fixed Income Fund covers the
fiscal year ended July 31, 2007.

PERFORMANCE OVERVIEW

Franklin Templeton Core Plus Fixed Income Fund posted a +5.02% cumulative total
return for the 12-month period ended July 31, 2007. The Fund underperformed its
benchmark, the Lehman Brothers (LB) U.S. Aggregate Index, which returned +5.58%
during the same period. 1 You can find more of the Fund's performance data in
the Performance Summary beginning on page 12.

INVESTMENT STRATEGY

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 | 9

PORTFOLIO BREAKDOWN
Franklin Templeton
Core Plus Fixed Income Fund
Based on Total Investments as of 7/31/07

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

Mortgage-Backed Securities 33.1%
Thrifts & Mortgage Finance 15.2%
Diversified Financial Services 7.3%
Foreign Government & Agency Securities 7.2%
Consumer Finance 4.1%
U.S. Government & Agency Securities 4.1%
Capital Markets 2.5%
Diversified Telecommunication Services 2.3%
Media 1.5%
Oil, Gas & Consumable Fuels 1.5%
Commercial Banks 1.3%
Other 3.6%
Short-Term Investments 16.3%

MANAGER'S DISCUSSION

In our view, some other areas of the fixed income market offered more attractive
opportunities based on our careful security selection. Following our investment
strategy, we retained a moderate exposure to select high yield bonds that our
analysts considered attractive, such as major auto finance companies. In
addition, we held U.S. dollar-denominated emerging market debt. Both asset
classes contributed to Fund performance as investors sought higher yields.
Within non-U.S. dollar bonds, we favored currencies we believed were more likely
to appreciate versus the U.S. dollar because we believed the U.S. dollar was
over-valued. The portfolio ended the period with positions in non-euro European
currencies that we believed could benefit from ongoing regional economic
strength. We also held select Asian currencies that we believed could gain from
any adjustments in global trade imbalances. Our currency positioning positively
impacted performance.

Finally, we maintained a cautious stance on the fixed income markets as recent
developments in the subprime mortgage sector began to put pressure on the
overall market.

10 | Annual Report

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

[PHOTO OMITTED] /s/ Michael Materasso

Michael Materasso
Executive Vice President of Franklin Templeton
Institutional, LLC (FT Institutional)

[PHOTO OMITTED] /s/ Warren Keyser

Warren Keyser
Portfolio Manager of FT Institutional

[PHOTO OMITTED] /s/ Robert Waldner

Robert Waldner
Portfolio Manager of FT Institutional

Portfolio Management Team
Franklin Templeton Core Plus Fixed Income Fund

TOP 10 HOLDINGS
Franklin Templeton
Core Plus Fixed Income Fund
7/31/07

- --------------------------------------------------------------------------------
ISSUE/ISSUER % OF TOTAL
SECTOR INVESTMENTS
- --------------------------------------------------------------------------------
FHLMC 22.7%
MORTGAGE-BACKED SECURITIES
- --------------------------------------------------------------------------------
FNMA 12.5%
MORTGAGE-BACKED SECURITIES/
U.S. GOVERNMENT & AGENCY SECURITIES
- --------------------------------------------------------------------------------
U.S. Treasury Note 7.7%
U.S. GOVERNMENT & AGENCY SECURITIES
- --------------------------------------------------------------------------------
Citibank Credit Card Issuance Trust 4.6%
THRIFTS & MORTGAGE FINANCE
- --------------------------------------------------------------------------------
SLM Student Loan Trust 4.0%
DIVERSIFIED FINANCIAL SERVICES
- --------------------------------------------------------------------------------
GE Capital Commercial Mortgage Corp. 3.6%
THRIFTS & MORTGAGE FINANCE
- --------------------------------------------------------------------------------
FHLB 2.8%
U.S. GOVERNMENT & AGENCY SECURITIES
- --------------------------------------------------------------------------------
U.S. Treasury Bond 2.2%
U.S. GOVERNMENT & AGENCY SECURITIES
- --------------------------------------------------------------------------------
American Express Credit Account
Master Trust 1.5%
CONSUMER FINANCE
- --------------------------------------------------------------------------------
Household Credit Card Master Note
Trust I 1.5%
THRIFTS & MORTGAGE FINANCE
- --------------------------------------------------------------------------------

Annual Report | 11

Performance Summary as of 7/31/07

FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND

PRICE AND DISTRIBUTION INFORMATION

- --------------------------------------------------------------------------------
SYMBOL: FCPFX CHANGE 7/31/07 7/31/06
- --------------------------------------------------------------------------------
Net Asset Value (NAV) -$ 0.04 $ 10.12 $ 10.16
- --------------------------------------------------------------------------------
DISTRIBUTIONS (8/1/06-7/31/07)
- --------------------------------------------------------------------------------
Dividend Income $ 0.5450
- --------------------------------------------------------------------------------

PERFORMANCE 1

THE FUND MAY CHARGE A 2% FEE ON SHARES REDEEMED WITHIN SEVEN DAYS OF PURCHASE.

- --------------------------------------------------------------------------------------
1-YEAR 3-YEAR INCEPTION (8/4/03)
- --------------------------------------------------------------------------------------

Cumulative Total Return 2 +5.02% +13.44% +21.35%
- --------------------------------------------------------------------------------------
Average Annual Total Return 3 +5.02% +4.29% +4.97%
- --------------------------------------------------------------------------------------
Value of $10,000 Investment 4 $ 10,502 $ 11,344 $ 12,135
- --------------------------------------------------------------------------------------
Avg. Ann. Total Return (6/30/07) 5 +6.53% +4.62% +5.06%
- --------------------------------------------------------------------------------------
Total Annual Operating Expenses 6
- --------------------------------------------------------------------------------------
Without Waiver 0.60%
- --------------------------------------------------------------------------------------
With Waiver 0.43%
- --------------------------------------------------------------------------------------

THE FUND'S MANAGER AND ADMINISTRATOR HAVE CONTRACTUALLY AGREED TO LIMIT FUND
EXPENSES SO THAT TOTAL ANNUAL FUND OPERATING EXPENSES DO NOT EXCEED 0.43% (OTHER
THAN CERTAIN NON-ROUTINE EXPENSES) UNTIL 11/30/08.

12 | Annual Report

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT 1

8/4/03-7/31/07

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

Franklin Templeton LB U.S. Aggregate
Calendar Month Core Plus Fixed Income Fund Index 7
Aug-03 $ 10,040 $ 10,057
Sep-03 $ 10,360 $ 10,324
Oct-03 $ 10,300 $ 10,228
Nov-03 $ 10,320 $ 10,252
Dec-03 $ 10,532 $ 10,357
Jan-04 $ 10,614 $ 10,440
Feb-04 $ 10,697 $ 10,553
Mar-04 $ 10,779 $ 10,632
Apr-04 $ 10,602 $ 10,355
May-04 $ 10,561 $ 10,314
Jun-04 $ 10,592 $ 10,373
Jul-04 $ 10,697 $ 10,475
Aug-04 $ 10,863 $ 10,675
Sep-04 $ 10,914 $ 10,704
Oct-04 $ 10,994 $ 10,794
Nov-04 $ 10,952 $ 10,708
Dec-04 $ 11,072 $ 10,806
Jan-05 $ 11,135 $ 10,874
Feb-05 $ 11,104 $ 10,810
Mar-05 $ 11,019 $ 10,755
Apr-05 $ 11,160 $ 10,900
May-05 $ 11,256 $ 11,018
Jun-05 $ 11,353 $ 11,078
Jul-05 $ 11,317 $ 10,977
Aug-05 $ 11,436 $ 11,118
Sep-05 $ 11,382 $ 11,003
Oct-05 $ 11,309 $ 10,916
Nov-05 $ 11,364 $ 10,965
Dec-05 $ 11,476 $ 11,069
Jan-06 $ 11,509 $ 11,069
Feb-06 $ 11,554 $ 11,106
Mar-06 $ 11,432 $ 10,997
Apr-06 $ 11,418 $ 10,977
May-06 $ 11,384 $ 10,965
Jun-06 $ 11,384 $ 10,989
Jul-06 $ 11,555 $ 11,137
Aug-06 $ 11,737 $ 11,308
Sep-06 $ 11,816 $ 11,407
Oct-06 $ 11,924 $ 11,483
Nov-06 $ 12,097 $ 11,616
Dec-06 $ 12,034 $ 11,548
Jan-07 $ 12,022 $ 11,544
Feb-07 $ 12,175 $ 11,722
Mar-07 $ 12,198 $ 11,722
Apr-07 $ 12,294 $ 11,785
May-07 $ 12,223 $ 11,696
Jun-07 $ 12,128 $ 11,661
Jul-07 $ 12,135 $ 11,759

AVERAGE ANNUAL TOTAL RETURN

- --------------------------------------------
7/31/07
- --------------------------------------------
1-Year +5.02%
- --------------------------------------------
3-Year +4.29%
- --------------------------------------------
Since Inception (8/4/03) +4.97%
- --------------------------------------------

ENDNOTES

INTEREST RATE MOVEMENTS AND MORTGAGE PREPAYMENTS MAY AFFECT THE FUND'S SHARE
PRICE AND YIELD. BOND PRICES, AND THUS THE FUND'S SHARE PRICE, GENERALLY MOVE IN
THE OPPOSITE DIRECTION OF INTEREST RATES. THE FUND'S INVESTMENTS IN FOREIGN
COMPANIES, INCLUDING EMERGING MARKETS, CAN INVOLVE SPECIAL RISKS INCLUDING
CURRENCY VOLATILITY AND POLITICAL, ECONOMIC AND REGULATORY UNCERTAINTY. THE
FUND'S PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE MAIN INVESTMENT RISKS.

1. The Fund's manager and administrator have contractually agreed to limit Fund
expenses so that total annual Fund operating expenses do not exceed 0.43% (other
than certain non-routine expenses) until 11/30/08. If the manager and
administrator had not taken this action, the Fund's total returns would have
been lower.

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

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

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

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

6. Figures are as stated in the Fund's prospectus current as of the date of this
report.

Annual Report | 13

Your Fund's Expenses

FRANKLIN TEMPLETON 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, if
applicable, and redemption fees; and

ACTUAL FUND EXPENSES

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

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

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

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

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

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

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

14 | Annual Report

Your Fund's Expenses (CONTINUED)

- ------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 2/1/07 VALUE 7/31/07 PERIOD* 2/1/07-7/31/07
- ------------------------------------------------------------------------------------------------------

Actual $1,000 $1,009.40 $2.14
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,022.66 $2.16
- ------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio, net of expense waivers, of
0.43%, multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.

Annual Report | 15

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FRANKLIN TEMPLETON CORE FIXED INCOME FUND

---------------------------------------------------
YEAR ENDED JULY 31,
2007 2006 2005 2004 g
---------------------------------------------------

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

Net asset value, beginning of year ............................. $ 9.62 $ 10.00 $ 9.97 $ 10.00
---------------------------------------------------

Income from investment operations a:

Net investment income b ..................................... 0.47 0.43 0.32 0.26

Net realized and unrealized gains (losses) .................. (0.05) (0.32) 0.19 0.13
---------------------------------------------------

Total from investment operations ............................... 0.42 0.11 0.51 0.39
---------------------------------------------------

Less distributions from:

Net investment income ....................................... (0.47) (0.49) (0.45) (0.39)

Net realized gains .......................................... -- -- (0.03) (0.03)
---------------------------------------------------

Total distributions ............................................ (0.47) (0.49) (0.48) (0.42)
---------------------------------------------------

Net asset value, end of year ................................... $ 9.57 $ 9.62 $ 10.00 $ 9.97
===================================================

Total return c ................................................. 4.44% 1.14% 5.13% 3.96%

RATIOS TO AVERAGE NET ASSETS d

Expenses before waiver and payments by affiliates .............. 0.67% 0.70% 0.72% 0.99%

Expenses net of waiver and payments by affiliates .............. 0.45% f 0.45% f 0.45% f 0.45% f

Net investment income .......................................... 4.81% 4.32% 3.19% 2.76%

SUPPLEMENTAL DATA

Net assets, end of year (000's) ................................ $ 29,671 $ 20,316 $ 26,720 $ 17,543

Portfolio turnover rate ........................................ 512.24% 534.14% 473.05% 459.82%

Portfolio turnover rate excluding mortgage dollar rolls e ...... 132.05% 213.90% 254.13% 259.85%

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

b Based on average daily shares outstanding.

c Total return is not annualized for periods less than one year.

d Ratios are annualized for periods less than one year.

e See Note 1(f) regarding mortgage dollar rolls.

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

g For the period August 29, 2003 (commencement of operations) to July 31, 2004.

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

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON CORE FIXED INCOME FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

LONG TERM INVESTMENTS 110.5%
CORPORATE BONDS 22.0%
CAPITAL MARKETS 2.7%
b General Electric Capital Corp., FRN, 5.40%, 3/04/08 ..................... United States $ 345,000 $ 345,290
The Goldman Sachs Group Inc., junior sub. note, 6.345%, 2/15/34 ......... United States 145,000 132,882
Morgan Stanley, sub. note, 4.75%, 4/01/14 ............................... United States 355,000 333,326
--------------
811,498
--------------
COMMERCIAL BANKS 2.0%
c,d HSBC Capital Funding LP, Reg S, 4.61%, Perpetual ........................ Jersey Islands 330,000 303,765
d Wachovia Capital Trust III, 5.80%, Perpetual ............................ United States 300,000 294,462
--------------
598,227
--------------
CONSUMER FINANCE 2.8%
Residential Capital LLC,
6.50%, 6/01/12 ....................................................... United States 360,000 326,900
senior note, 6.875%, 6/30/15 ......................................... United States 145,000 128,570
b senior note, FRN, 5.86%, 6/09/08 ..................................... United States 380,000 364,834
--------------
820,304
--------------
DIVERSIFIED FINANCIAL SERVICES 1.9%
Core Investment Grade Bond Trust I, Pass-Through Certificates, 2002-1,
4.642%, 11/30/07 ..................................................... United States 578,316 576,497
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES 1.7%
Ameritech Capital Funding Corp., 6.25%, 5/18/09 ......................... United States 250,000 253,689
Embarq Corp., senior note, 7.995%, 6/01/36 .............................. United States 110,000 108,929
Telecom Italia Capital, senior note, 4.95%, 9/30/14 ..................... Italy 155,000 142,154
--------------
504,772
--------------
HEALTH CARE PROVIDERS & SERVICES 1.1%
Quest Diagnostics Inc., 6.40%, 7/01/17 .................................. United States 330,000 335,652
--------------
INSURANCE 3.4%
Chubb Corp., senior note, 6.00%, 5/11/37 ................................ United States 405,000 387,925
b Genworth Financial Inc., junior sub. note, FRN, 6.15%, 11/15/66 ......... United States 145,000 132,518
b Lincoln National Corp., FRN, 7.00%, 5/17/66 ............................. United States 285,000 286,832
b MetLife Inc., junior sub. note, FRN, 6.40%, 12/15/66 .................... United States 215,000 192,859
--------------
1,000,134
--------------
MEDIA 1.7%
News America Inc., 6.40%, 12/15/35 ...................................... United States 305,000 287,354
TCI Communications Inc., senior note, 8.75%, 8/01/15 .................... United States 200,000 229,796
--------------
517,150
--------------
OIL, GAS & CONSUMABLE FUELS 3.0%
e Gaz Capital SA, 144A, 6.212%, 11/22/16 .................................. Luxembourg 245,000 233,068
e Petroleum Export Cayman, senior note, 144A, 5.265%, 6/15/11 ............. Egypt 340,038 333,208
Valero Energy Corp., 6.625%, 6/15/37 .................................... United States 310,000 309,557
--------------
875,833
--------------

Annual Report | 17

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
ROAD & RAIL 0.8%
Kazakhstan Temir Zholy, 6.50%, 5/11/11 .................................. Kazakhstan $ 230,000 $ 235,182
--------------
THRIFTS & MORTGAGE FINANCE 0.9%
e Capmark Financial Group Inc., 144A, 6.30%, 5/10/17 ...................... United States 295,000 261,777
--------------
TOTAL CORPORATE BONDS (COST $6,767,109) ................................. 6,537,026
--------------
MORTGAGE-BACKED SECURITIES 46.7%
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) FIXED RATE 31.7%
f FHLMC Gold 30 Year, 4.50%, 8/01/27 ...................................... United States 1,150,000 1,095,734
f FHLMC Gold 30 Year, 5.50%, 8/01/33 ...................................... United States 2,113,000 2,041,357
f FHLMC Gold 30 Year, 6.50%, 3/01/15 ...................................... United States 6,198,000 6,268,694
--------------
9,405,785
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) FIXED RATE 15.0%
f FNMA 30 Year, 5.00%, 8/01/33 ............................................ United States 4,741,000 4,446,911
--------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $13,765,972) ..................... 13,852,696
--------------
ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES 30.2%
CONSUMER FINANCE 3.6%
b American Express Credit Account Master Trust, 2003-3, A, FRN, 5.43%,
11/15/10 ............................................................. United States 700,000 700,601
b Bank of America Credit Card Trust, 2007, A7, FRN, 5.32%, 8/15/12 ........ United States 365,000 365,000
--------------
1,065,601
--------------
DIVERSIFIED FINANCIAL SERVICES 7.1%
b Ford Credit Floorplan Master Owner Trust, 2006, A, FRN, 5.50%, 6/15/11 .. United States 210,000 210,143
b Permanent Financing PLC, 7, 2A, FRN, 5.40%, 9/10/14 ..................... United States 250,000 249,971
b Popular ABS Mortgage Pass-Through Trust,
2006-A, A1, FRN, 5.41%, 2/25/36 ...................................... United States 178,206 178,217
2006-C, A1, FRN, 5.37%, 7/25/36 ...................................... United States 129,312 129,079
b SLM Student Loan Trust,
2005-4, A1, FRN, 5.37%, 10/26/15 ..................................... United States 85,606 85,632
2006-1, A2, FRN, 5.37%, 1/26/15 ...................................... United States 239,713 239,856
2006-7, A2, FRN, 5.35%, 10/25/16 ..................................... United States 471,846 472,036
2007-1, A2, FRN, 5.36%, 1/25/16 ...................................... United States 539,000 539,379
--------------
2,104,313
--------------
THRIFTS & MORTGAGE FINANCE 19.5%
b Bear Stearns Commercial Mortgage Securities Inc., 2005-PW10, A4, FRN,
5.405%, 12/11/40 ..................................................... United States 475,000 461,630
b Citibank Credit Card Issuance Trust,
2007, A1, FRN, 5.35%, 3/22/12 ........................................ United States 605,000 605,239
2007, A2, FRN, 5.35%, 5/21/12 ........................................ United States 170,000 170,088
2007, A6, FRN, 5.35%, 7/12/12 ........................................ United States 438,000 437,521
Citigroup/Deutsche Bank Commercial Mortgage Trust,
b 2005-CD1, A4, FRN, 5.40%, 7/15/44 .................................... United States 475,000 459,216
2006-CD3, A4, 5.658%, 10/15/48 ....................................... United States 1,018,000 1,001,999
sub. bond, 2006-CD3, C, 5.748%, 10/15/48 ............................. United States 745,000 713,836

18 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES (CONTINUED)
THRIFTS & MORTGAGE FINANCE (CONTINUED)
b,e Countrywide Asset-Backed Certificates, 2004-SD3, A1, 144A, FRN, 5.77%,
9/25/34 .............................................................. United States $ 27,353 $ 27,469
CS First Boston Mortgage Securities Corp., 2004-1, 5A1, 5.50%, 2/25/19 .. United States 18,220 17,899
GE Capital Commercial Mortgage Corp., 2001-3, A2, 6.07%, 6/10/38 ........ United States 538,000 546,714
b Household Credit Card Master Note Trust I, 2007-1, A, FRN, 5.37%,
4/15/13 .............................................................. United States 676,000 676,423
b Indymac Index Mortgage Loan Trust, 2006-AR6, 2A1C, FRN, 5.53%,
6/25/47 .............................................................. United States 523,000 523,303
LB-UBS Commercial Mortgage Trust, 2006-C1, A4, 5.156%, 2/15/31 .......... United States 95,000 90,540
b Washington Mutual Inc., 2004-AR2, A, FRN, 6.422%, 4/25/44 ............... United States 60,471 60,597
--------------
5,792,474
--------------
TOTAL ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES (COST $9,036,596) ......................................... 8,962,388
--------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES (COST $259,081) 1.0%
c Government of Russia, Reg S, 12.75%, 6/24/28 ............................ Russia 165,000 288,230
--------------
U.S. GOVERNMENT AND AGENCY SECURITIES 8.9%
FNMA, 5.00%, 2/13/17 .................................................... United States 450,000 438,962
U.S. Treasury Bond,
7.25%, 8/15/22 ....................................................... United States 38,000 46,936
5.375%, 2/15/31 ...................................................... United States 304,000 321,029
U.S. Treasury Note,
4.00%, 8/31/07 ....................................................... United States 597,000 596,627
4.625%, 8/31/11 ...................................................... United States 731,000 732,086
4.625%, 11/15/16 ..................................................... United States 521,000 514,814
--------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES (COST $2,643,452) ........... 2,650,454
--------------

------------------
SHARES
------------------

PREFERRED STOCK (COST $570,273) 1.7%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.7%
e Centaur Funding Corp., 9.08%, pfd., B, 144A ............................. United States 448 515,900
--------------
TOTAL LONG TERM INVESTMENTS (COST $33,042,483) .......................... 32,806,694
--------------

------------------
PRINCIPAL AMOUNT a
------------------

SHORT TERM INVESTMENTS 35.8%
U.S. GOVERNMENT AND AGENCY SECURITIES 13.4%
g FHLB, 8/08/07 ........................................................... United States $ 1,897,000 1,895,128
g FNMA, 8/13/07 ........................................................... United States 748,000 746,734
U.S. Treasury Note, 6.125%, 8/15/07 ..................................... United States 1,324,000 1,324,829
--------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES (COST $3,965,924) ........... 3,966,691
--------------
TOTAL INVESTMENTS BEFORE MONEY MARKET FUND (COST $37,008,407) ........... 36,773,385
--------------

Annual Report | 19

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON CORE FIXED INCOME FUND COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

SHORT TERM INVESTMENTS (CONTINUED)
MONEY MARKET FUND (COST $6,645,095) 22.4%
h Franklin Institutional Fiduciary Trust Money Market Portfolio, 5.00% .... United States 6,645,095 $ 6,645,095
--------------
TOTAL INVESTMENTS (COST $43,653,502) 146.3% ............................. 43,418,480
NET UNREALIZED GAIN (LOSS) ON CREDIT DEFAULT SWAPS (0.1)% ............... (48,092)
OTHER ASSETS, LESS LIABILITIES (46.2)% .................................. (13,699,751)
--------------
NET ASSETS 100.0% ....................................................... $ 29,670,637
==============

See Selected Portfolio Abbreviations on page 27.

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

b The coupon rate shown represents the rate at period end.

c Security was purchased pursuant to Regulation S under the Securities Act of
1933, which exempts from registration securities offered and sold outside of the
United States. Such a security cannot be sold in the United States without
either an effective registration statement filed pursuant to the Securities Act
of 1933, or pursuant to an exemption from registration. These securities have
been deemed liquid under guidelines approved by the Trust's Board of Trustees.
At July 31, 2007, the aggregate value of these securities was $591,995,
representing 2.00% of net assets.

d Perpetual bond with no stated maturity date.

e Security was purchased pursuant to Rule 144A under the Securities Act of 1933
and may be sold in transactions exempt from registration only to qualified
institutional buyers or in a public offering registered under the Securities Act
of 1933. These securities have been deemed liquid under guidelines approved by
the Trust's Board of Trustees. At July 31, 2007, the aggregate value of these
securities was $1,371,422, representing 4.62% of net assets.

f See Note 1(c) regarding securities purchased on a to-be-announced basis.

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

h See Note 7 regarding investments in the Franklin Institutional Fiduciary Trust
Money Market Portfolio. The rate shown is the annualized seven-day yield at
period end.

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

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND

-----------------------------------------------
YEAR ENDED JULY 31,
2007 2006 2005 2004 h
-----------------------------------------------

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

Net asset value, beginning of year .................................... $ 10.16 $ 10.46 $ 10.32 $ 10.00
-----------------------------------------------

Income from investment operations a:

Net investment income b ............................................ 0.50 0.46 0.36 0.28

Net realized and unrealized gains (losses) ......................... 0.01 (0.25) 0.23 0.41
-----------------------------------------------

Total from investment operations ...................................... 0.51 0.21 0.59 0.69
-----------------------------------------------

Less distributions from:

Net investment income .............................................. (0.55) (0.51) (0.45) (0.30)

Net realized gains ................................................. -- -- g -- (0.07)
-----------------------------------------------

Total distributions ................................................... (0.55) (0.51) (0.45) (0.37)
-----------------------------------------------

Net asset value, end of year .......................................... $ 10.12 $ 10.16 $ 10.46 $ 10.32
===============================================

Total return c ........................................................ 5.02% 2.10% 5.80% 6.97%

RATIOS TO AVERAGE NET ASSETS d

Expenses before waiver and payments by affiliates ..................... 0.57% 0.56% 0.58% 0.84%

Expenses net of waiver and payments by affiliates ..................... 0.43% f 0.43% f 0.43% f 0.43% f

Net investment income ................................................. 4.87% 4.47% 3.44% 2.76%

SUPPLEMENTAL DATA

Net assets, end of year (000's) ....................................... $101,992 $ 97,272 $ 96,823 $ 54,132

Portfolio turnover rate ............................................... 479.36% 516.39% 465.89% 426.29%

Portfolio turnover rate excluding mortgage dollar rolls e ............. 143.61% 213.60% 244.29% 222.53%

b Based on average daily shares outstanding.

c Total return is not annualized for periods less than one year.

d Ratios are annualized for periods less than one year.

e See Note 1(f) regarding mortgage dollar rolls.

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

g Amount rounds to less than $0.01 per share.

h For the period August 4, 2003 (commencement of operations) to July 31, 2004.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 21

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

LONG TERM INVESTMENTS 123.3%
CORPORATE BONDS 19.7%
AUTOMOBILES 1.0%
Ford Motor Credit Co. LLC,
5.70%, 1/15/10 ....................................................... United States 260,000 $ 242,417
7.875%, 6/15/10 ...................................................... United States 275,000 267,486
8.625%, 11/01/10 ..................................................... United States 500,000 496,307
--------------
1,006,210
--------------
CAPITAL MARKETS 3.7%
b General Electric Capital Corp., FRN, 5.40%, 3/04/08 ..................... United States 2,040,000 2,041,713
The Goldman Sachs Group Inc., junior sub. note, 6.345%, 2/15/34 ......... United States 930,000 852,280
Morgan Stanley, sub. note, 4.75%, 4/01/14 ............................... United States 965,000 906,084
--------------
3,800,077
--------------
CHEMICALS 0.2%
Nalco Co., senior sub. note, 8.875%, 11/15/13 ........................... United States 230,000 227,700
--------------
COMMERCIAL BANKS 1.8%
c,d HSBC Capital Funding LP, Reg S, 4.61%, Perpetual ........................ Jersey Islands 1,085,000 998,742
c RBS Capital Trust III, 5.512%, Perpetual ................................ United States 920,000 883,822
--------------
1,882,564
--------------
CONSUMER FINANCE 2.6%
e Alfa MTM for ABH Financial, 144A, 8.20%, 6/25/12 ........................ Cyprus 545,000 551,657
GMAC LLC, 6.75%, 12/01/14 ............................................... United States 1,025,000 922,520
b Residential Capital LLC, senior note, FRN, 5.86%, 6/09/08 ............... United States 1,200,000 1,152,108
--------------
2,626,285
--------------
DIVERSIFIED FINANCIAL SERVICES 1.2%
Core Investment Grade Bond Trust I, Pass-Through Certificates, 2002-1,
4.642%, 11/30/07 ..................................................... United States 1,193,335 1,189,582
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES 1.5%
Embarq Corp., senior note, 7.995%, 6/01/36 .............................. United States 410,000 406,008
Sprint Capital Corp., 6.90%, 5/01/19 .................................... United States 245,000 241,122
Telecom Italia Capital, senior note, 4.95%, 9/30/14 ..................... Italy 1,015,000 930,877
--------------
1,578,007
--------------
ELECTRIC UTILITIES 1.0%
Consumers Energy Co., C, 4.25%, 4/15/08 ................................. United States 985,000 976,669
--------------
ELECTRICAL EQUIPMENT 0.8%
Elektrownia Turow BV, 9.75%, 3/14/11 .................................... Poland 545,000 EUR 835,769
--------------
FOOD PRODUCTS 0.1%
Smithfield Foods Inc., senior note, 7.75%, 5/15/13 ...................... United States 90,000 89,100
--------------

22 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
HOTELS RESTAURANTS & LEISURE 0.4%
Host Marriott LP, senior note, K, 7.125%, 11/01/13 ...................... United States 195,000 $ 190,613
Station Casinos Inc., senior sub. note, 6.875%, 3/01/16 ................. United States 305,000 258,487
--------------
449,100
--------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.2%
NRG Energy Inc., senior note, 7.375%, 2/01/16 ........................... United States 240,000 232,200
--------------
MEDIA 2.3%
Lamar Media Corp., senior sub. note, 7.25%, 1/01/13 ..................... United States 200,000 193,000
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 .................. United States 275,000 266,063
News America Inc., 6.40%, 12/15/35 ...................................... United States 1,070,000 1,008,093
TCI Communications Inc., senior note, 8.75%, 8/01/15 .................... United States 740,000 850,247
--------------
2,317,403
--------------
OIL, GAS & CONSUMABLE FUELS 2.2%
e Gaz Capital SA, 144A, 6.212%, 11/22/16 .................................. Luxembourg 475,000 451,867
e Petroleum Export Cayman, senior note, 144A, 5.265%, 6/15/11 ............. Egypt 787,893 772,067
Valero Energy Corp., 6.625%, 6/15/37 .................................... United States 975,000 973,607
--------------
2,197,541
--------------
ROAD & RAIL 0.4%
Kazakhstan Temir Zholy, 7.00%, 5/11/16 .................................. Kazakhstan 365,000 374,129
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.1%
e Freescale Semiconductor Inc., senior note, 144A, 8.875%, 12/15/14 ....... United States 140,000 128,450
--------------
TOBACCO 0.2%
Reynolds American Inc., senior secured note, 7.625%, 6/01/16 ............ United States 185,000 191,894
--------------
TOTAL CORPORATE BONDS (COST $20,541,404) ................................ 20,102,680
--------------
MORTGAGE-BACKED SECURITIES 48.8%
b FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) ADJUSTABLE RATE 0.9%
FHLMC, 5.479%, 9/01/24 .................................................. United States 918,627 924,844
--------------
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) FIXED RATE 32.5%
f FHLMC Gold 30 Year, 4.50%, 8/01/27 ...................................... United States 4,058,000 3,866,511
f FHLMC Gold 30 Year, 5.50%, 8/01/33 ...................................... United States 7,456,000 7,203,197
f FHLMC Gold 30 Year, 6.50%, 3/01/15 ...................................... United States 21,863,000 22,112,369
--------------
33,182,077
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) FIXED RATE 15.4%
f FNMA 30 Year, 5.00%, 8/01/33 ............................................ United States 16,729,000 15,691,284
--------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $49,493,628) ..................... 49,798,205
--------------

Annual Report | 23

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

LONG TERM INVESTMENTS (CONTINUED)
ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES 36.4%
CONSUMER FINANCE 3.5%
b American Express Credit Account Master Trust, 2003-3, A, FRN, 5.43%,
11/15/10 .............................................................. United States 2,300,000 $ 2,301,977
b Bank of America Credit Card Trust, 2007, A7, FRN, 5.32%,
8/15/12 ............................................................... United States 1,275,000 1,274,998
--------------
3,576,975
--------------
DIVERSIFIED FINANCIAL SERVICES 9.6%
b Ford Credit Floorplan Master Owner Trust, 2006, A, FRN, 5.50%,
6/15/11 ............................................................... United States 1,000,000 1,000,681
b Permanent Financing PLC, 7, 2A, FRN, 5.40%, 9/10/14 ..................... United States 1,470,000 1,469,831
b Popular ABS Mortgage Pass-Through Trust,
2006-A, A1, FRN, 5.41%, 2/25/36 ...................................... United States 661,062 661,101
2006-C, A1, FRN, 5.37%, 7/25/36 ...................................... United States 622,315 621,195
b SLM Student Loan Trust,
2002-3, A4, FRN, 5.50%, 10/25/16 ..................................... United States 225,358 225,892
2005-4, A1, FRN, 5.37%, 10/26/15 ..................................... United States 658,592 658,796
2006-1, A2, FRN, 5.37%, 1/26/15 ...................................... United States 889,222 889,752
2006-7, A2, FRN, 5.35%, 10/25/16 ..................................... United States 2,201,387 2,202,273
2007-1, A2, FRN, 5.36%, 1/25/16 ...................................... United States 2,065,000 2,066,452
--------------
9,795,973
--------------
REAL ESTATE MANAGEMENT & DEVELOPMENT 0.9%
b GS Mortgage Securities Corp. II, 2006-GG6, A4, FRN, 5.553%,
4/10/38 ............................................................... United States 951,000 930,576
--------------
THRIFTS & MORTGAGE FINANCE 22.4%
b Citibank Credit Card Issuance Trust,
2003-A9, A9, FRN, 5.44%, 11/22/10 .................................... United States 1,700,000 1,702,033
2007-A1, A1, FRN, 5.35%, 3/22/12 ..................................... United States 2,098,000 2,098,829
2007-A2, A2, FRN, 5.35%, 5/21/12 ..................................... United States 1,607,000 1,607,828
2007-A6, A6, FRN, 5.35%, 7/12/12 ..................................... United States 1,532,000 1,530,324
Citigroup/Deutsche Bank Commercial Mortgage Trust, sub. bond,
2006-CD3, C, 5.748%, 10/15/48 ......................................... United States 2,080,000 1,992,990
b,e Countrywide Asset-Backed Certificates, 2004-SD3, A1, 144A, FRN,
5.77%, 9/25/34 ........................................................ United States 13,676 13,735
GE Capital Commercial Mortgage Corp., 2001-3, A2, 6.07%, 6/10/38 ........ United States 5,303,000 5,388,897
Greenwich Capital Commercial Funding Corp., 2005-GG5, A5, 5.224%,
4/10/37 ............................................................... United States 2,117,000 2,035,427
b Household Credit Card Master Note Trust I, 2007-1, A, FRN, 5.37%,
4/15/13 ............................................................... United States 2,292,000 2,293,433
b Indymac Index Mortgage Loan Trust, 2006-AR6, 2A1C, FRN, 5.53%,
6/25/47 ............................................................... United States 1,718,429 1,719,425

24 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

LONG TERM INVESTMENTS (CONTINUED)
ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES (CONTINUED)
THRIFTS & MORTGAGE FINANCE (CONTINUED)
LB-UBS Commercial Mortgage Trust, 2006-C1, A4, 5.156%, 2/15/31 .......... United States 2,117,000 $ 2,017,611
b Washington Mutual Inc., 2004-AR2, A, FRN, 6.422%, 4/25/44 ............... United States 396,241 397,068
--------------
22,797,600
--------------
TOTAL ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES (COST $37,239,349) ......................................... 37,101,124
--------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES 10.5%
b Government of Japan, FRN, 1.22%, 3/20/21 ................................ Japan 119,000,000 JPY 999,586
Government of Malaysia, 3.756%, 4/28/11 ................................. Malaysia 5,300,000 MYR 1,548,801
Government of Norway, 5.50%, 5/15/09 .................................... Norway 11,653,000 NOK 2,012,913
Government of Poland, 6.00%, 5/24/09 .................................... Poland 2,614,000 PLN 956,836
d Government of Russia, Reg S, 12.75%, 6/24/28 ............................ Russia 557,000 972,995
Government of Singapore, 2.375%, 10/01/09 ............................... Singapore 3,004,000 SGD 1,978,332
Government of Sweden, 6.50%, 5/05/08 .................................... Sweden 12,260,000 SEK 1,852,873
d Government of Venezuela, Reg S, 6.00%, 12/09/20 ......................... Venezuela 565,000 457,650
--------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $10,361,212) .................................................... 10,779,986
--------------
U.S. GOVERNMENT AND AGENCY SECURITIES 6.0%
U.S. Treasury Bond,
7.25%, 8/15/22 ....................................................... United States 758,000 936,249
5.375%, 2/15/31 ...................................................... United States 848,000 895,501
4.50%, 2/15/36 ....................................................... United States 1,503,000 1,405,305
U.S. Treasury Note,
4.875%, 6/30/12 ...................................................... United States 954,000 965,330
4.625%, 11/15/16 ..................................................... United States 1,950,000 1,926,846
--------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES (COST $6,144,933) ........... 6,129,231
--------------

------------------
SHARES
------------------

PREFERRED STOCK (COST $2,169,136) 1.9%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.9%
e Centaur Funding Corp., 9.08%, pfd., B, 144A ............................. United States 1,683 1,938,080
--------------
TOTAL LONG TERM INVESTMENTS (COST $125,949,662) ......................... 125,849,306
--------------

------------------
PRINCIPAL AMOUNT a
------------------

SHORT TERM INVESTMENTS 24.1%
U.S. GOVERNMENT AND AGENCY SECURITIES 15.7%
g FHLB, 8/08/07 ........................................................... United States 4,191,000 4,186,863
g FNMA, 8/13/07 ........................................................... United States 3,068,000 3,062,809
U.S. Treasury Note, 6.125%, 8/15/07 ..................................... United States 8,687,000 8,692,438
--------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(COST $15,938,580) .................................................... 15,942,110
--------------
TOTAL INVESTMENTS BEFORE MONEY MARKET FUND
(COST $141,888,242) ................................................... 141,791,416
--------------

Annual Report | 25

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

SHORT TERM INVESTMENTS (CONTINUED)
MONEY MARKET FUND (COST $8,591,754) 8.4%
h Franklin Institutional Fiduciary Trust Money Market Portfolio, 5.00%..... United States 8,591,754 $ 8,591,754
--------------
TOTAL INVESTMENTS (COST $150,479,996) 147.4% ............................ 150,383,170
NET UNREALIZED GAIN (LOSS) ON CREDIT DEFAULT SWAPS (0.5)% ............... (553,522)
NET UNREALIZED GAIN (LOSS) ON FORWARD EXCHANGE
CONTRACTS (0.1)% ...................................................... (103,176)
OTHER ASSETS, LESS LIABILITIES (46.8)% .................................. (47,734,207)
--------------
NET ASSETS 100.0% ....................................................... $ 101,992,265
==============

CURRENCY ABBREVIATIONS

EUR - Euro
JPY - Japanese Yen
MYR - Malaysian Ringgit
NOK - Norwegian Krone
PLN - Polish Zloty
SEK - Swedish Krona
SGD - Singapore Dollar

See Selected Portfolio Abbreviations on page 27.

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

b The coupon rate shown represents the rate at period end.

c Perpetual bond with no stated maturity date.

d Security was purchased pursuant to Regulation S under the Securities Act of
1933, which exempts from registration securities offered and sold outside of the
United States. Such a security cannot be sold in the United States without
either an effective registration statement filed pursuant to the Securities Act
of 1933, or pursuant to an exemption from registration. These securities have
been deemed liquid under guidelines approved by the Trust's Board of Trustees.
At July 31, 2007, the aggregate value of these securities was $2,429,387,
representing 2.38% of net assets.

f See Note 1(c) regarding securities purchased on a to-be-announced basis.

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

h See Note 7 regarding investments in the Franklin Institutional Fiduciary Trust
Money Market Portfolio. The rate shown is the annualized seven-day yield at
period end.

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

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

SELECTED PORTFOLIO ABBREVIATIONS

FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corp.
FNMA - Federal National Mortgage Association
FRN - Floating Rate Note
MTM - Medium Term Note

Annual Report |
The accompanying notes are an integral part of these financial statements. | 27

Franklin Global Trust

FINANCIAL STATEMENTS

STATEMENTS OF ASSETS AND LIABILITIES
July 31, 2007

---------------------------------
FRANKLIN FRANKLIN
TEMPLETON TEMPLETON
CORE FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
---------------------------------

Assets:
Investments in securities:
Cost - Unaffiliated issuers .............................................. $ 37,008,407 $ 141,888,242
Cost - Sweep Money Fund (Note 7) ......................................... 6,645,095 8,591,754
---------------------------------
Total cost of investments ................................................ $ 43,653,502 $ 150,479,996
=================================
Value - Unaffiliated issuers ............................................. $ 36,773,385 $ 141,791,416
Value - Sweep Money Fund (Note 7) ........................................ 6,645,095 8,591,754
---------------------------------
Total value of investments ............................................... 43,418,480 150,383,170
Receivables:
Investment securities sold ............................................... -- 47,255
Interest ................................................................. 228,488 1,002,051
Swap premiums paid .......................................................... 3,671 32,299
Unrealized gain on forward exchange contracts (Note 9) ...................... -- 55,380
Unrealized gain on swap agreements (Note 8) ................................. 6,357 21,526
---------------------------------
Total assets .......................................................... 43,656,996 151,541,681
=================================
Liabilities:
Payables:
Investment securities purchased .......................................... 13,796,008 48,677,811
Capital shares redeemed .................................................. 105,400 713
Affiliates ............................................................... 1,484 33,967
Accrued swap premium ..................................................... 191 12,548
Swap premiums received ................................................... 21,555 74,247
Unrealized loss on forward exchange contracts (Note 9) ...................... -- 158,556
Unrealized loss on swap agreements (Note 8) ................................. 54,449 575,048
Accrued expenses and other liabilities ...................................... 7,272 16,526
---------------------------------
Total liabilities ..................................................... 13,986,359 49,549,416
---------------------------------
Net assets, at value ............................................... $ 29,670,637 $ 101,992,265
=================================
Net assets consist of:
Paid-in capital ............................................................. $ 30,821,261 $ 104,686,533
Undistributed net investment income ......................................... 88,663 751,850
Net unrealized appreciation (depreciation) .................................. (283,114) (752,269)
Accumulated net realized gain (loss) ........................................ (956,173) (2,693,849)
---------------------------------
Net assets, at value ............................................... $ 29,670,637 $ 101,992,265
=================================
Shares outstanding ............................................................. 3,099,857 10,079,252
=================================
Net asset value and maximum offering price per share a ......................... $ 9.57 $ 10.12
=================================

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

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF OPERATIONS
for the year ended July 31, 2007

---------------------------------
FRANKLIN FRANKLIN
TEMPLETON TEMPLETON
CORE FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
---------------------------------

Investment income:
Dividends:
Unaffiliated issuers ..................................................... $ 52,546 $ 76,408
Sweep Money Fund (Note 7) ................................................ 274,976 440,642
Interest .................................................................... 1,079,500 4,762,206
---------------------------------
Total investment income ............................................... 1,407,022 5,279,256
---------------------------------
Expenses:
Management fees (Note 3a) ................................................... 63,853 277,557
Administrative fees (Note 3b) ............................................... 53,428 199,503
Transfer agent fees (Note 3c) ............................................... 1,727 1,576
Custodian fees (Note 4) ..................................................... 817 9,792
Reports to shareholders ..................................................... 5,408 12,938
Registration and filing fees ................................................ 16,476 22,363
Professional fees ........................................................... 24,311 23,464
Trustees' fees and expenses ................................................. 1,974 7,988
Other ....................................................................... 10,034 12,698
---------------------------------
Total expenses ........................................................ 178,028 567,879
Expense reductions (Note 4) ........................................... (160) (655)
Expenses waived/paid by affiliates (Note 3d) .......................... (57,666) (141,633)
---------------------------------
Net expenses ....................................................... 120,202 425,591
---------------------------------
Net investment income ........................................... 1,286,820 4,853,665
---------------------------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments .............................................................. (115,827) 78,527
Foreign currency transactions ............................................ -- 35,081
Swap agreements .......................................................... (11,592) (39,295)
---------------------------------
Net realized gain (loss) ........................................ (127,419) 74,313
---------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments .............................................................. (186,283) (259,709)
Translation of assets and liabilities denominated in foreign currencies .. -- 489
---------------------------------
Net change in unrealized appreciation (depreciation) ............ (186,283) (259,220)
---------------------------------
Net realized and unrealized gain (loss) ........................................ (313,702) (184,907)
---------------------------------
Net increase (decrease) in net assets resulting from operations ................ $ 973,118 $ 4,668,758
=================================

Annual Report |
The accompanying notes are an integral part of these financial statements. | 29

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

--------------------------------------------------------------
FRANKLIN TEMPLETON FRANKLIN TEMPLETON
CORE FIXED INCOME FUND CORE PLUS FIXED INCOME FUND
--------------------------------------------------------------
YEAR ENDED JULY 31, YEAR ENDED JULY 31,
2007 2006 2007 2006
--------------------------------------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income .................................. $ 1,286,820 $ 1,007,846 $ 4,853,665 $ 4,494,619
Net realized gain (loss) from investments, foreign
currency transactions, and swap agreements .......... (127,419) (601,831) 74,313 (1,637,310)
Net change in unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
denominated in foreign currencies ................... (186,283) (125,577) (259,220) (788,323)
--------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations ............................... 973,118 280,438 4,668,758 2,068,986
Distributions to shareholders from:
Net investment income .................................. (1,294,491) (1,136,364) (5,160,935) (5,055,295)
Net realized gains ..................................... -- -- -- (25,928)
--------------------------------------------------------------
Total distributions to shareholders ....................... (1,294,491) (1,136,364) (5,160,935) (5,081,223)
--------------------------------------------------------------
Capital share transactions (Note 2) ....................... 9,676,194 (5,548,308) 5,212,746 3,461,384
--------------------------------------------------------------
Net increase (decrease) in net assets ............ 9,354,821 (6,404,234) 4,720,569 449,147
Net assets:
Beginning of year ......................................... 20,315,816 26,720,050 97,271,696 96,822,549
--------------------------------------------------------------
End of year ............................................... $ 29,670,637 $ 20,315,816 $ 101,992,265 $ 97,271,696
==============================================================
Undistributed net investment income included in net assets:
End of year ............................................... $ 88,663 $ 55,604 $ 751,850 $ 655,273
==============================================================

30 | The accompanying notes are an integral part of these financial statements.
| 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 amended, (the 1940 Act) as an open-end investment company,
consisting of eight separate funds. The Franklin Templeton Core Fixed Income
Fund is diversified, and the Franklin Templeton Core Plus Fixed Income Fund is
non-diversified. The financial statements of the remaining funds in the Trust
are presented separately.

The following summarizes the Funds' significant accounting policies.

A. SECURITY VALUATION

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

Annual Report | 31

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

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

B. FOREIGN CURRENCY TRANSLATION

C. SECURITIES PURCHASED ON A TBA BASIS

The Funds may purchase securities on a 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.

32 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. FOREIGN CURRENCY CONTRACTS

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

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

E. CREDIT DEFAULT SWAPS

The Funds may purchase or sell credit default swap contracts to manage or gain
exposure to credit risk. Credit default swaps are agreements between two parties
whereby the buyer receives credit protection and the seller guarantees the
credit worthiness of a referenced debt obligation. The buyer pays the seller a
periodic stream of payments over the term of the contract provided that no event
of default has occurred. Such periodic payments are accrued daily and recorded
as realized gain or loss upon receipt or payment there of in the Statement of
Operations. In return, the buyer would be entitled to receive the par (or other
agreed-upon) value of a referenced debt obligation from the counterparty to the
contract in the event of a default by a third party, such as a U.S. or foreign
issuer, on the debt obligation.

Credit default swaps are marked to market daily based upon quotations from the
market makers and the change in value, if any, is recorded as an unrealized gain
or loss in the Statement of Operations. Any payment received or paid to initiate
a contract is recorded as a liability or asset in the Statement of Assets and
Liabilities and amortized over the life of the contract as a realized gain or
loss. When the swap contract is terminated early, the Funds record a realized
gain or loss for any payments received or paid.

The risks of credit default swaps include unfavorable changes in interest rates,
an illiquid secondary market and the possible inability of the counterparty to
fulfill its obligations under the agreement, which may be in excess of the
amount reflected in the Statement of Assets and Liabilities.

Annual Report | 33

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. MORTGAGE DOLLAR ROLLS

The Funds 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 mortgage-backed securities 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 counter-party to fulfill its obligations.

G. INCOME TAXES

H. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

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

Inflation-indexed bonds provide an inflation hedge through periodic increases in
the security's interest accruals and principal redemption value, by amounts
corresponding to the current rate of inflation. Any such adjustments, including
adjustments to principal redemption value, are recorded as interest income.

34 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I. ACCOUNTING ESTIMATES

J. REDEMPTION FEES

K. GUARANTEES AND INDEMNIFICATIONS

2. SHARES OF BENEFICIAL INTEREST

At July 31, 2007, there were an unlimited number of shares authorized (no par
value). Transactions in the Fund's shares were as follows:

------------------------------------------------------
FRANKLIN TEMPLETON CORE FRANKLIN TEMPLETON CORE
FIXED INCOME FUND PLUS FIXED INCOME FUND
------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------

Year ended July 31, 2007
Shares sold ..................................... 2,303,611 $ 22,473,947 1,991,039 $ 20,551,715
Shares issued in reinvestment of distributions .. 23,247 225,620 140,433 1,436,888
Shares redeemed ................................. (1,338,466) (13,023,373) (1,627,600) (16,775,857)
------------------------------------------------------
Net increase (decrease) ......................... 988,392 $ 9,676,194 503,872 $ 5,212,746
======================================================
Year ended July 31, 2006
Shares sold ..................................... 537,907 $ 5,266,001 1,930,452 $ 20,055,218
Shares issued in reinvestment of distributions .. 28,063 272,048 94,088 959,786
Shares redeemed ................................. (1,127,011) (11,086,357) (1,707,391) (17,553,620)
------------------------------------------------------
Net increase (decrease) ......................... (561,041) $ (5,548,308) 317,149 $ 3,461,384
======================================================

Annual Report | 35

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES

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

Fiduciary International, Inc. (Fiduciary) Investment manager
Franklin Templeton Institutional, LLC (FT Institutional) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

A. MANAGEMENT FEES

The Funds pay an investment management fee to Fiduciary of 0.30% per year of the
average daily net assets of each of the Funds.

Under a subadvisory agreement, FT Institutional, an affiliate of Fiduciary,
provides subadvisory services to the Funds and receives from Fiduciary fees
based on the average daily net assets of each of the Funds.

B. ADMINISTRATIVE FEES

The Funds pay an administrative fee to FT Services of 0.20% per year of the
average daily net assets of each of the Funds.

C. TRANSFER AGENT FEES

For the year ended July 31, 2007, the Funds paid transfer agent fees as noted in
the Statements of Operations of which the following amounts were retained by
Investor Services:

------------------------------
FRANKLIN FRANKLIN
TEMPLETON TEMPLETON
CORE FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
------------------------------
Transfer agent fees ...................... $41 $176

D. WAIVER AND EXPENSE REIMBURSEMENTS

For the Franklin Templeton Core Fixed Income Fund, FT Services and Fiduciary
have agreed in advance to waive a portion of their respective fees through
November 30, 2008. For the Franklin Templeton Core Plus Fixed Income Fund, FT
Services has agreed in advance to voluntarily waive a portion of its fees
through November 30, 2008. Total expenses waived are not subject to
reimbursement by the Funds subsequent to the Funds' fiscal year end. After
November 30, 2008, FT Services and Fiduciary may discontinue this waiver at any
time upon notice to the Funds' Board of Trustees.

36 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

4. EXPENSE OFFSET ARRANGEMENT

5. INCOME TAXES

For tax purposes, capital losses may be carried over to offset future capital
gains, if any. At July 31, 2007, the capital loss carryforwards were as follows:

------------------------------
FRANKLIN FRANKLIN
TEMPLETON TEMPLETON
CORE FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
------------------------------
Capital loss carryforwards expiring in:
2014 .................................. $156,633 $ 198,370
2015 .................................. 431,590 1,351,118
------------------------------
$588,223 $1,549,488
==============================

For tax purposes, realized capital losses occurring subsequent to October 31,
may be deferred and treated as occurring on the first day of the following
fiscal year. At July 31, 2007, the Franklin Templeton Core Fixed Income Fund and
the Franklin Templeton Core Plus Fixed Income Fund deferred realized capital
losses of $350,792 and $1,087,736, respectively.

The tax character of distributions paid during the years ended July 31, 2007 and
2006, was as follows:

--------------------------------------------------
FRANKLIN TEMPLETON FRANKLIN TEMPLETON
CORE FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
--------------------------------------------------
2007 2006 2007 2006
--------------------------------------------------

Distributions paid from:
Ordinary income ......... $1,294,491 $1,136,364 $5,160,935 $5,073,292
Long term capital gain .. -- -- -- 7,931
--------------------------------------------------
$1,294,491 $1,136,364 $5,160,935 $5,081,223
==================================================

Annual Report | 37

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. INCOME TAXES (CONTINUED)

At July 31, 2007, the cost of investments, net unrealized appreciation
(depreciation) and undistributed ordinary income for income tax purposes were as
follows:

-------------------------------
FRANKLIN FRANKLIN
TEMPLETON TEMPLETON
CORE FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
-------------------------------

Cost of investments ......................... $ 43,709,097 $ 150,742,329
===============================
Unrealized appreciation ..................... $ 138,043 $ 936,196
Unrealized depreciation ..................... (428,660) (1,295,355)
-------------------------------
Net unrealized appreciation (depreciation) .. $ (290,617) $ (359,159)
===============================

Distributable earnings - undistributed
ordinary income .......................... $ 79,007 $ 311,241
===============================

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions, mortgage dollar
rolls, pass-through entity income, paydown losses, credit default swaps, bond
discounts and premiums, and inflation related adjustments on foreign securities.

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, credit default swaps, bond
discounts and premiums, and inflation related adjustments on foreign securities.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
year ended July 31, 2007, were as follows:

-------------------------------
FRANKLIN FRANKLIN
TEMPLETON TEMPLETON
CORE FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
-------------------------------
Purchases ................................... $157,533,419 $ 590,914,536
Sales ....................................... $146,638,459 $ 568,427,935

7. INVESTMENTS IN FRANKLIN INSTITUTIONAL FIDUCIARY TRUST MONEY MARKET PORTFOLIO

38 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

8. CREDIT DEFAULT SWAPS

At July 31, 2007, the Funds had the following credit default swap contracts
outstanding:

FRANKLIN TEMPLETON CORE FIXED INCOME FUND

- ---------------------------------------------------------------------------------------------------------------------------
PERIODIC
NOTIONAL PAYMENT EXPIRATION UNREALIZED UNREALIZED
AMOUNT RATE DATE GAIN LOSS
- ---------------------------------------------------------------------------------------------------------------------------

CONTRACTS TO BUY PROTECTION
REFERENCED DEBT OBLIGATION (SWAP COUNTERPARTY)
Allstate Corp. (JP Morgan) ................................ $ 300,000 0.25% 9/20/17 $ 3,850 $ --
Anadarko Petroleum Corp. (Citigroup) ...................... 300,000 0.33% 3/20/12 2,507 --

CONTRACTS TO SELL PROTECTION
REFERENCED DEBT OBLIGATION (SWAP COUNTERPARTY)
CMBX.NA.BBB.2 (Credit Suisse) ............................. 450,000 0.60% 3/15/49 -- (54,449)
----------------------
Unrealized gain (loss) on credit default swaps .............................................. 6,357 (54,449)
----------------------
Net unrealized gain (loss) on credit default swaps ....................................... $ (48,092)
===========

FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND

CONTRACTS TO BUY PROTECTION
REFERENCED DEBT OBLIGATION (SWAP COUNTERPARTY)
Allstate Corp. (JP Morgan) ................................ $1,000,000 0.25% 9/20/17 $ 12,834 $ --
Anadarko Petroleum Corp. (Citigroup) ...................... 1,040,000 0.33% 3/20/12 8,692 --

CONTRACTS TO SELL PROTECTION
REFERENCED DEBT OBLIGATION (SWAP COUNTERPARTY)
CMBX.NA.BBB.2 (Credit Suisse) ............................. 1,550,000 0.60% 3/15/49 -- (187,548)
LCDX NA (JP Morgan) ....................................... 5,000,000 1.20% 6/20/12 -- (387,500)
----------------------
Unrealized gain (loss) on credit default swaps .............................................. 21,526 (575,048)
----------------------
Net unrealized gain (loss) on credit default swaps ....................................... $ (553,522)
===========

9. FORWARD EXCHANGE CONTRACTS

At July 31, 2007, the Franklin Templeton Core Plus Fixed Income Fund had the
following forward exchange contracts outstanding:

- ---------------------------------------------------------------------------------------------------------------------------
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN (LOSS)
- ---------------------------------------------------------------------------------------------------------------------------

CONTRACTS TO BUY
5,291,000 Malaysian Ringitt ................................. 1,543,015 8/13/07 $ -- $ (10,381)
990,000 Euro .............................................. 1,321,422 8/20/07 34,113 --
115,850,000 Japanese Yen ...................................... 959,023 8/24/07 21,267 --

CONTRACTS TO SELL
2,916,000 Euro .............................................. 3,892,189 8/20/07 -- (100,478)
119,000,000 Japanese Yen ...................................... 976,210 8/20/07 -- (30,159)
620,000 Euro .............................................. 831,606 8/27/07 -- (17,538)
======================
Unrealized gain (loss) on forward exchange contracts ........................................... 55,380 (158,556)
----------------------
Net unrealized gain (loss) on forward exchange contracts .................................... $ (103,176)
===========

a In U.S. Dollar unless otherwise indicated.

Annual Report | 39

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

10. CREDIT RISK

The Franklin Templeton Core Plus Fixed Income Fund has 5.33% 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 AND LITIGATION MATTERS

On June 6, 2007, the SEC posted for public comment the proposed plan of
distribution for the market timing settlement. Following the public comment
period, and once the SEC approves the final plan of distribution, disbursements
of settlement monies will be made promptly to individuals who were shareholders
of the designated funds during the relevant period, in accordance with the terms
and conditions of the settlement and plan.

40 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

12. NEW ACCOUNTING PRONOUNCEMENTS

Annual Report | 41

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 Franklin Templeton Core Fixed
Income Fund and Franklin Templeton Core Plus Fixed Income Fund, (separate
portfolios of Franklin Global Trust, hereafter referred to as the "Funds") at
July 31, 2007, the results of each of their operations for the year then ended,
the changes in each of their net assets for each of the two years in the period
then ended and the financial highlights for 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 audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at July 31, 2007 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 17, 2007

42 | Annual Report

Franklin Global Trust

Franklin Templeton Core Fixed Income Fund
Franklin Templeton Core Plus Fixed Income Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED)

A Special Meeting of Shareholders of the Trust was held at the Trust's offices,
One Franklin Parkway, San Mateo, California on March 21, 2007. The purpose of
the meeting was to elect Trustees of the Trust and to vote on the following
Proposals and Sub-Proposals: to approve an Amended and Restated Agreement and
Declaration of Trust; and to approve amendments to certain of the Franklin
Templeton Core Fixed Income Fund's and Franklin Templeton Core Plus Fixed Income
Fund's (each, a "Fund") fundamental investment restrictions (including three (3)
Sub-Proposals). At the meeting, the following persons were elected by the
shareholders to serve as Independent Trustees of the Trust: Harris J. Ashton,
Robert F. Carlson, Sam Ginn, Edith E. Holiday, Frank W. T. LaHaye, Frank A.
Olson, Larry D. Thompson and John B. Wilson. Charles B. Johnson and Gregory E.
Johnson were elected by the shareholders to serve as Interested Trustees.
Shareholders also approved the Amended and Restated Agreement and Declaration of
Trust and amendments to certain of the Funds' fundamental investment
restrictions (including three (3) Sub-Proposals). No other business was
transacted at the meeting.

Proposal 1. The Election of Trustees:

- ------------------------------------------------------------------------------------------------------------
% OF % OF % OF % OF
OUTSTANDING VOTED OUTSTANDING VOTED
NAME FOR SHARES SHARES WITHHELD SHARES SHARES
- ------------------------------------------------------------------------------------------------------------

Harris J. Ashton ............. 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Robert F. Carlson ............ 31,255,986.306 83.526% 99.951% 15,358.451 0.041% 0.049%
Sam Ginn ..................... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Edith E. Holiday ............. 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Frank W.T. LaHaye ............ 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Frank A. Olson ............... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Larry D. Thompson ............ 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
John B. Wilson ............... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Charles B. Johnson ........... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Gregory E. Johnson ........... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%

Proposal 2. To approve an Amended and Restated Agreement and Declaration of
Trust:

- --------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................. 29,754,630.388 79.514% 95.151%
Against ............................. 5,747.015 0.015% 0.018%
Abstain ............................. 7,315.354 0.020% 0.023%
Broker non-votes .................... 1,503,652.000 4.018% 4.808%
- --------------------------------------------------------------------------------
TOTAL ............................... 31,271,344.757 83.567% 100.000%

Annual Report | 43

Franklin Global Trust

Franklin Templeton Core Fixed Income Fund
Franklin Templeton Core Plus Fixed Income Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Funds' fundamental
investment restrictions (includes three (3) Sub-Proposals):

(a) To amend the Fund's fundamental investment restriction regarding lending:

- --------------------------------------------------------------------------------
% OF % OF
FRANKLIN TEMPLETON CORE OUTSTANDING VOTED
FIXED INCOME FUND SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For .................................. 1,954,707.003 71.165% 77.444%
Against .............................. -- -- --
Abstain .............................. -- -- --
Broker Non-Votes ..................... 569,308.000 20.727% 22.556%
- --------------------------------------------------------------------------------
TOTAL ................................ 2,524,015.003 91.892% 100.000%

- --------------------------------------------------------------------------------
% OF % OF
FRANKLIN TEMPLETON CORE PLUS OUTSTANDING VOTED
FIXED INCOME FUND SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For .................................. 6,132,678.868 60.854% 92.883%
Against .............................. -- -- --
Abstain .............................. -- -- --
Broker Non-Votes ..................... 469,924.000 4.663% 7.117%
- --------------------------------------------------------------------------------
TOTAL ................................ 6,602,602.868 65.517% 100.000%

(b) To amend the Fund's fundamental investment restriction regarding investments
in real estate:

44 | Annual Report

Franklin Global Trust

Franklin Templeton Core Fixed Income Fund
Franklin Templeton Core Plus Fixed Income Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Funds' fundamental
investment restrictions (includes three (3) Sub-Proposals): (CONTINUED)

Annual Report | 45

Franklin Global Trust

BOARD MEMBERS AND OFFICERS

INDEPENDENT BOARD MEMBERS

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

HARRIS J. ASHTON (1932) Trustee Since 2000 140 Director, Bar-S Foods (meat packing
One Franklin Parkway company).
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice President, senior member and past President, Board of Administration, California Public Employees Retirement Systems (CALPERS);
and FORMERLY, member and Chairman of the Board, Sutter Community Hospitals; member, Corporate Board, Blue Shield of California; and
Chief Counsel, California Department of Transportation.
- ------------------------------------------------------------------------------------------------------------------------------------
SAM GINN (1937) Trustee Since March 121 Director, Chevron Corporation (global
One Franklin Parkway 2007 energy company) and ICO Global
San Mateo, CA 94403-1906 Communications (Holdings) Limited
(satellite company).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Private investor; and FORMERLY, Chairman of the Board, Vodafone AirTouch (wireless company), PLC; Chairman of the Board and Chief
Executive Officer, AirTouch Communications (cellular communications) (1993-1998) and Pacific Telesis Groups (telephone holding
company) (1988-1994).
- ------------------------------------------------------------------------------------------------------------------------------------
EDITH E. HOLIDAY (1952) Trustee Since 2000 140 Director, Hess Corporation (formerly,
One Franklin Parkway Amerada Hess 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),
Canadian National Railway (railroad) and
White Mountains Insurance Group, Ltd.
(holding company).

46 | Annual Report

FRANK W.T. LAHAYE (1929) Trustee Since 2000 121 Director, Center for Creative Land
One Franklin Parkway Recycling (brownfield 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).
- ------------------------------------------------------------------------------------------------------------------------------------
FRANK A. OLSON (1932) Trustee Since 2005 140 Director, Hess Corporation (formerly,
One Franklin Parkway Amerada Hess Corporation) (exploration and
San Mateo, CA 94403-1906 refining of oil and gas) and Sentient Jet
(private jet service).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Chairman Emeritus, The Hertz Corporation (since 2000) (Chairman of the Board (1980-2000) and Chief Executive Officer (1977-1999));
and FORMERLY, Chairman of the Board, President and Chief Executive Officer, UAL Corporation.
- ------------------------------------------------------------------------------------------------------------------------------------
LARRY D. THOMPSON (1945) Trustee Since March 140 None
One Franklin Parkway 2007
San Mateo, CA 94403-1906

INTERESTED BOARD MEMBERS AND OFFICERS

**CHARLES B. JOHNSON (1933) Trustee and Since 2000 140 None
One Franklin Parkway Chairman of
San Mateo, CA 94403-1906 the Board

Annual Report | 47

**GREGORY E. JOHNSON (1961) Trustee Since March 91 None
One Franklin Parkway 2007
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Director, President and Chief Executive Officer, Franklin Resources, Inc.; President, Templeton Worldwide, Inc.; Director, Templeton
Asset Management Ltd.; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin
Resources, Inc. and of 33 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JAMES M. DAVIS (1952) Chief Chief Not Applicable Not Applicable
One Franklin Parkway Compliance Compliance
San Mateo, CA 94403-1906 Officer and Officer
Vice President since 2004
- AML and Vice
Compliance President -
AML
Compliance
since 2006

48 | Annual Report

DAVID P. GOSS (1947) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President, Chief Investment Officer and Director, Franklin Advisers, Inc.; Executive Vice President, Franklin Templeton
Institutional, LLC; and officer and/or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc.
and of four of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
RUPERT H. JOHNSON, JR. (1940) President and President Not Applicable Not Applicable
One Franklin Parkway Chief since 2000
San Mateo, CA 94403-1906 Executive and Chief
Officer Executive
- Investment Officer -
Management Investment
Management
since 2002

Annual Report | 49

CRAIG S. TYLE (1960) Vice President Since 2005 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
General Counsel and Executive Vice President, Franklin Resources, Inc.; officer of some of the other subsidiaries of Franklin
Resources, Inc. and of 46 of the investment companies in Franklin Templeton Investments; and FORMERLY, Partner, Shearman & Sterling,
LLP (2004-2005); and General Counsel, Investment Company Institute (ICI) (1997-2004).
- ------------------------------------------------------------------------------------------------------------------------------------
GALEN G. VETTER (1951) Chief Since 2004 Not Applicable Not Applicable
500 East Broward Blvd. Financial
Suite 2100 Officer and
Fort Lauderdale, FL 33394-3091 Chief
Accounting
Officer

Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are brothers and the
father and uncle, respectively, of Gregory E. Johnson.

Note 2: Officer information is current as of the date of this report. It is
possible that after this date, information about officers may change.

Note 3: Prior to July 31, 2007, Harmon E. Burns, S. Joseph Fortunato, Rupert H.
Johnson, Jr. and Gordon S. Macklin ceased to be trustees of the Trust.

50 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

Annual Report | 51

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

fund complex, the adherence to fair value pricing procedures established by the
Board, and the accuracy of net asset value calculations. The Board also noted
the extent of benefits provided Fund shareholders from being part of the
Franklin Templeton family of funds, including the right to exchange investments
between the same class of funds without a sales charge, the ability to reinvest
Fund dividends into other funds and the right to combine holdings in other funds
to obtain a reduced sales charge. Favorable consideration was given to
management's continuous efforts and expenditures in establishing back-up systems
and recovery procedures to function in the event of a natural disaster, it being
noted that such systems and procedures had functioned smoothly during the
Florida hurricanes and blackouts experienced in recent years. Consideration was
also given to the experience of the Fund's portfolio management team, the number
of accounts managed and general method of compensation. In this latter respect,
the Board noted that a primary factor in management's determination of a
portfolio manager's bonus compensation was the relative investment performance
of the funds he or she managed and that a portion of such bonus was required to
be invested in a predesignated list of funds within such person's fund
management area so as to be aligned with the interests of Fund shareholders. The
Board also took into account the quality of transfer agent and shareholder
services provided Fund shareholders by an affiliate of the Manager, noting
continuing expenditures by management to increase and improve the scope of such
services, periodic favorable reports on such service conducted by third parties,
the high industry ranking given to the Franklin Templeton website, and the
firsthand experience of individual Board members who deal with the shareholder
services department in their capacities as shareholders in one or more of the
various Franklin Templeton funds.

INVESTMENT PERFORMANCE. The Board placed significant emphasis on the investment
performance of each Fund in view of its importance to shareholders. While
consideration was given to performance reports and discussions with portfolio
managers at Board meetings throughout the year, particular attention in
assessing performance was given to the Lipper reports furnished for the
agreement renewals. The Lipper reports prepared for each individual Fund showed
the investment performance of the Fund in comparison to a performance universe
selected by Lipper. Comparative performance for each Fund was shown for the
one-year period ended December 31, 2006, and for additional periods ended that
date depending on when a particular Fund commenced operations. Investment
performance was shown on a total return basis and on an income return basis for
Franklin Templeton Core Fixed Income Fund and Franklin Templeton Core Plus Fixed
Income Fund. The following summarizes the performance results for each of the
Funds and the Board's view of such performance.

FRANKLIN TEMPLETON CORE FIXED INCOME FUND - The performance universe for this
Fund consisted of the Fund and all retail and institutional BBB-rated corporate
debt funds as selected by Lipper. This Fund has been in operation for only three
full years. The Lipper report showed the Fund's income return to be in the
second-highest quintile of such performance universe for both the one-year and
three-year periods on an annualized basis, and its total return to be in the
second-lowest quintile of such performance universe for such periods. The Board
found such performance to be acceptable and noted the Fund's limited period of
operations.

52 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

FRANKLIN TEMPLETON CORE PLUS FIXED FUND INCOME FUND - The performance universe
for this Fund consisted of the Fund and all retail and institutional BBB-rated
corporate debt funds as selected by Lipper. This Fund has been in operation for
only three full years. The Lipper report for the one-year period showed the
Fund's income return to be in the highest quintile of such performance universe
and its total return to be in the second-highest quintile of such performance
universe, and for the three-year period its income and total return to be in the
middle and second-highest quintiles of such universe, respectively. The Board
was satisfied with the Fund's performance.

COMPARATIVE EXPENSES. Consideration was given to the management fee and total
expense ratios of each Fund compared with those of a group of funds selected by
Lipper as its appropriate Lipper expense group. Prior to making such
comparisons, the Board relied upon a survey showing that the scope of management
advisory services covered under a Fund's investment management agreement was
similar to those provided by fund managers to other mutual fund groups. In
reviewing comparative costs, emphasis was given to each Fund's management fee in
comparison with the contractual investment management fee that would have been
charged by other funds within its Lipper expense group assuming they were
similar in size to the Fund, as well as the actual total expenses of the Fund in
comparison with those of its Lipper expense group. The Lipper contractual
investment management fee analysis includes the advisory and administrative fees
directly charged to each Fund as being part of the management fee. Both the
contractual investment management fee rate and actual total expenses were in
either the least expensive or second least expensive quintiles of their
respective Lipper expense groups in the case of Franklin Templeton Core Fixed
Income Fund and Franklin Templeton Core Plus Fixed Income Fund. The Board was
satisfied with these comparative expenses noting that Franklin Templeton Core
Fixed Income Fund and Franklin Templeton Core Plus Fixed Income Fund benefited
from fee waivers or reimbursements.

Annual Report | 53

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

savings and efficiencies initiated by management. The Board also took into
account management's expenditures in improving shareholder services provided the
Funds, as well as the need to meet additional regulatory and compliance
requirements resulting from the Sarbanes-Oxley Act and recent SEC requirements.
In addition, the Board considered a third-party study comparing the
profitability of the Manager's parent on an overall basis as compared to other
publicly held managers broken down to show profitability from management
operations exclusive of distribution expenses, as well as profitability
including distribution expenses. The Board also considered the extent to which
the Manager and its affiliates might derive ancillary benefits from fund
operations, including potential benefits resulting from allocation of fund
brokerage and the use of "soft" commission dollars to pay for research. Based
upon its consideration of all these factors, the Board determined that the level
of profits realized by the Manager and its affiliates from providing services to
each Fund was not excessive in view of the nature, quality and extent of
services provided.

PROXY VOTING POLICIES AND PROCEDURES

QUARTERLY STATEMENT OF INVESTMENTS

54 | Annual Report

This page intentionally left blank.

[LOGO](R) FRANKLIN TEMPLETON INSTITUTIONAL
FRANKLIN TEMPLETON
INSTITUTIONAL 600 Fifth Avenue
New York, NY 10020

ANNUAL REPORT

FRANKLIN GLOBAL TRUST

FRANKLIN TEMPLETON CORE FIXED INCOME FUND
FRANKLIN TEMPLETON CORE PLUS FIXED INCOME FUND

INVESTMENT MANAGER

Fiduciary International, Inc.

DISTRIBUTOR

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

FRANKLIN TEMPLETON INSTITUTIONAL SERVICES

1-800/321-8563
ftinstitutional.com

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

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

FGT2 A2007 09/07

[GRAPHIC OMITTED]

- --------------------------------------------------------------------------------
JULY 31, 2007
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
ANNUAL REPORT AND SHAREHOLDER LETTER SECTOR
- --------------------------------------------------------------------------------
WANT TO RECEIVE
THIS DOCUMENT
FASTER VIA EMAIL?

FRANKLIN GLOBAL Eligible shareholders can
REAL ESTATE FUND sign up for eDelivery at
franklintempleton.com.
See inside for details.
- --------------------------------------------------------------------------------

[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS

FRANKLIN o Templeton o Mutual Series

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

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

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

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

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

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

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

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

- --------------------------------------------------------------------------------
MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS
- --------------------------------------------------------------------------------

[GRAPHIC OMITTED]

Not part of the annual report

Contents

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

ANNUAL REPORT

Franklin Global Real Estate Fund .......................................... 3

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

Your Fund's Expenses ...................................................... 12

Financial Highlights and Statement of Investments ......................... 14

Financial Statements ...................................................... 20

Notes to Financial Statements ............................................. 24

Report of Independent Registered Public Accounting Firm ................... 34

Tax Designation ........................................................... 35

Meeting of Shareholders ................................................... 36

Board Members and Officers ................................................ 39

Shareholder Information ................................................... 44

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

Annual Report

Franklin Global Real Estate Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin Global Real Estate Fund seeks
high total return. Under normal market conditions, the Fund will invest at least
80% of its net assets in securities of companies located anywhere in the world
that operate in the real estate sector, including mainly real estate investment
trusts (REITs) and REIT-like entities. 1

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

PORTFOLIO BREAKDOWN
Based on Total Net Assets as of 7/31/07

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

Real Estate Investment Trusts .......................................... 83.1%
Real Estate Investment & Development ................................... 7.1%
Short-Term Investments & Other Net Assets .............................. 9.8%

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

This annual report for Franklin Global Real Estate Fund covers the fiscal year
ended July 31, 2007.

PERFORMANCE OVERVIEW

Franklin Global Real Estate Fund - Class A posted a cumulative total return of
+8.81% for the 12 months under review. The Fund underperformed its benchmark,
the Standard & Poor's (S&P)/Citigroup BMI Global REIT Index,

1. REITs are real estate investment trust companies, usually with publicly
traded stock, that manage a portfolio of income-producing real estate properties
such as apartments, hotels, industrial properties, office buildings or shopping
centers. The Fund predominantly invests in "equity" REITs, which also take
ownership positions in real estate. Shareholders of equity REITs generally
receive income from rents received and receive capital gains when properties are
sold at a profit. REITs are generally operated by experienced property
management teams and typically concentrate on a specific geographic region or
property type.

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 17.

Annual Report | 3

GEOGRAPHIC BREAKDOWN
Based on Total Net Assets as of 7/31/07

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

U.S. 33.5%
Australia 18.2%
Japan 10.8%
Singapore 8.1%
U.K. 7.7%
Netherlands 2.8%
France 2.6%
Hong Kong 2.2%
Canada 2.0%
Norway 2.0%
China 0.3%
Short-Term Investments & Other Net Assets 9.8%

which returned +10.04% for the same period. 2 You can find more of the Fund's
performance data in the Performance Summary on page 8.

ECONOMIC AND MARKET OVERVIEW

Globally, real estate markets had mixed results as certain regions and countries
fared better than others. Asian markets were among the strongest, and
Singapore's REIT market increased +62.9% in local currency terms during the
period. 2 The country's robust economy, buoyed by the arrival of the casino
industry and booming financial markets, benefited the REIT market. With limited
new office and retail supply, rents rose significantly. In addition, the
Monetary Authority of Singapore's March 2007 revision to a takeover code that
allowed acquisition of Singaporean REITs further enhanced this market's appeal.
Japan's REIT market benefited from recovering land prices and rose +34.4% in
local currency terms. 2 On the other hand, Hong Kong lagged much of the global
REIT market and rose just +7.1% in local currency terms for the period. 2 The
city's high interest rates and low property yields weighed on market
performance.

European real estate markets were mixed. French and Dutch REIT stocks rose
+20.9% and +10.7% in local currency terms, though expectations of interest rate
hikes seemed to dampen investors' optimism. 2 In an environment of market
consolidation, one notable event was Unibail's purchase of French rival Rodamco
Europe in April 2007 to create Europe's largest commercial property company,
with operations from Spain to Russia. British property stocks fell 19.7% in
local currency terms during the period, despite long-awaited legislation
introduced in January 2007 that launched REITs. 3 As interest rates moved above
property yields, underlying U.K. real estate fundamentals started to
deteriorate. Secondary retail property prices weakened while prime property
prices held.

The U.S. REIT market peaked in February 2007 during the final stage of
Blackstone's buyout of Equity Office Properties Trust. The market declined 20.5%
in the remaining months of the period and ended flat for the year. 2 Office
buildings continued to sell at record prices, but investors became wary of
overstretched valuations.

2. Source: Standard & Poor's Micropal. The S&P/Citigroup BMI Global REIT Index
is designed to measure performance of the investible universe of publicly traded
REITs. Index constituents generally derive more than 60% of revenue from real
estate development, management, rental, and/or direct investment in physical
property and with local REIT or property trust tax status. Local property
returns are from country subindexes of the S&P/Citigroup BMI Global REIT Index.
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: Standard & Poor's Micropal. Local property stock returns are from
country subindexes of the S&P/Citigroup BMI Global Property Index. The index is
designed to measure performance of the investible universe of publicly traded
property companies. Index constituents generally derive more than 60% of revenue
from real estate development, management, rental, and/or direct investment in
physical property, such as REITs and property trusts.

4 | Annual Report

Australian REITs produced a +16.6% local-currency return in the midst of
consolidation, with the takeover of three listed property trusts (LPTs) in June
2007 alone. 2 In addition, Australian companies that faced high interest rates
adopted a new approach of emphasizing fund management platforms. This recurring
fee structure was intended to diversify revenue sources and maximize earnings
potential.

INVESTMENT STRATEGY

We are research-driven, fundamental investors. We seek to limit price volatility
by investing across markets and property types. We also seek to provide a
consistently high level of income. We center our active investment strategy on
the belief that unsynchronized regional economic activity within the global
economy can provide consistent, attractive return opportunities in the global
real estate markets. We use a bottom-up, value-oriented stock selection process
that incorporates macro level views in the evaluation process. We use top-down
macro overlays to provide country/regional, property type, and company size
perspectives in identifying international/local cyclical and thematic trends
that highlight investment opportunities. We will seek to manage the Fund's
exposure to various currencies, and will generally seek to hedge (protect)
against currency risk, largely by using forward currency exchange contracts.

MANAGER'S DISCUSSION

For the 12 months ended July 31, 2007, several Fund holdings were stellar
performers on an absolute basis and relative to the S&P/Citigroup BMI Global
REIT Index. One of our top-performing stocks was Norwegian Property (not in the
index). We purchased the stock for the following reasons. The Norwegian economy
boasts one of the world's highest economic growth rates due to its large oil
industry. In addition, the office market in Oslo, Norway's capital city, was
buoyant as oil service companies and banks expanded in this booming economic
environment. Furthermore, according to our analysis of property yields and rent
rates, we found shares of Norwegian Property undervalued compared with REITs in
other northern European capital cities. The lack of broad sell-side research
coverage of the stock also added to its appeal, in our view.

Macquarie Airports (not in the index), an Australian LPT with airports in
Sydney, Brussels, Copenhagen and Bristol, was another strong Fund contributor.
We believed the company, which derives a significant portion of its revenues
from retail operations and airport parking, should continue to benefit from
tight airport security measures that force passengers to spend more time in
terminals. We also believed that analysts undervalued the airport assets while
using a high discount rate. The price Dubai Aerospace bid for competitor

TOP 10 HOLDINGS
7/31/07

- --------------------------------------------------------------------------------
COMPANY % OF TOTAL
SECTOR/INDUSTRY, COUNTRY NET ASSETS
- --------------------------------------------------------------------------------
Westfield Group 4.5%
EQUITY REIT - RETAIL, AUSTRALIA
- --------------------------------------------------------------------------------
Simon Property Group Inc. 3.1%
EQUITY REIT - RETAIL, U.S.
- --------------------------------------------------------------------------------
Land Securities Group 2.7%
EQUITY REIT - RETAIL, U.K.
- --------------------------------------------------------------------------------
SL Green Realty Corp. 2.5%
EQUITY REIT - OFFICE, U.S.
- --------------------------------------------------------------------------------
General Growth Properties Inc. 2.5%
EQUITY REIT - RETAIL, U.S.
- --------------------------------------------------------------------------------
Kimco Realty Corp 2.4%
EQUITY REIT - RETAIL, U.S.
- --------------------------------------------------------------------------------
Vornado Realty Trust 2.3%
EQUITY REIT - DIVERSIFIED PROPERTY, U.S.
- --------------------------------------------------------------------------------
AvalonBay Communities Inc. 2.3%
EQUITY REIT - APARTMENTS, U.S.
- --------------------------------------------------------------------------------
British Land Co. PLC 2.3%
EQUITY REIT - DIVERSIFIED PROPERTY, U.K.
- --------------------------------------------------------------------------------
Nationwide Health Properties Inc. 2.3%
EQUITY REIT - HEALTH CARE, U.S.
- --------------------------------------------------------------------------------

Annual Report | 5

Auckland Airport in July 2007 set a higher benchmark for airport stocks with
significant retail properties.

Another top Fund performer was Allco Commercial Real Estate Investment Trust, a
Singapore REIT that also has properties in western Australia. Our due diligence
process revealed Allco owned a 50% interest in the landmark Central Park office
tower in Perth, the only major city in booming western Australia, a region that
exports iron and other sought-after commodities to China. The property was
almost fully occupied during a period of low supply and high demand. Later in
the period, Allco also benefited from the Singapore office market's strong
growth.

Investors should note that we maintained our currency hedging position of being
hedged to the U.S. dollar versus most of our non-U.S. holdings. Since the dollar
was generally weaker against foreign currencies during the review period, the
portfolio returns would have been higher had we not hedged the foreign currency
exposure.

There were also some detractors from absolute and relative Fund performance such
as BioMed Realty Trust, a U.S.-based owner of highly specialized research
facilities serving the life sciences industry. Maguire Properties, a U.S. office
REIT with properties primarily in California, was another disappointment. This
REIT was hit by higher vacancy rates in the Orange County office market and by
the bankruptcy of New Century Financial, a large tenant.

Finally, Equity Office Properties Trust, which we did not own, weighed on the
Fund's relative returns. We did not hold shares of Equity Office Properties
prior to the Blackstone bid because we believed the stock offered a low dividend
yield and had exposure to oversupplied markets, which are not appealing
attributes for our high income and low volatility investment strategy.

6 | Annual Report

Thank you for your continued participation in Franklin Global Real Estate Fund.
We look forward to serving your future investment needs.

[PHOTO OMITTED] /s/ John W. Foster

John W. Foster
Portfolio Manager
Franklin Global Real Estate Fund

Annual Report | 7

Performance Summary as of 7/31/07

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

PRICE AND DISTRIBUTION INFORMATION

- --------------------------------------------------------------------------------
CLASS A (SYMBOL: FAGRX) CHANGE 7/31/07 7/31/06
- --------------------------------------------------------------------------------
Net Asset Value (NAV) +$0.54 $10.87 $10.33
- --------------------------------------------------------------------------------
DISTRIBUTIONS (8/1/06-7/31/07)
- --------------------------------------------------------------------------------
Dividend Income $0.3765
- --------------------------------------------------------------------------------
Short-Term Capital Gain $0.0271
- --------------------------------------------------------------------------------
TOTAL $0.4036
- --------------------------------------------------------------------------------
CLASS C (SYMBOL: N/A) CHANGE 7/31/07 7/31/06
- --------------------------------------------------------------------------------
Net Asset Value (NAV) +$0.50 $10.82 $10.32
- --------------------------------------------------------------------------------
DISTRIBUTIONS (8/1/06-7/31/07)
- --------------------------------------------------------------------------------
Dividend Income $0.3440
- --------------------------------------------------------------------------------
Short-Term Capital Gain $0.0271
- --------------------------------------------------------------------------------
TOTAL $0.3711
- --------------------------------------------------------------------------------
ADVISOR CLASS (SYMBOL: FVGRX) CHANGE 7/31/07 7/31/06
- --------------------------------------------------------------------------------
Net Asset Value (NAV) +$0.55 $10.89 $10.34
- --------------------------------------------------------------------------------
DISTRIBUTIONS (8/1/06-7/31/07)
- --------------------------------------------------------------------------------
Dividend Income $0.4004
- --------------------------------------------------------------------------------
Short-Term Capital Gain $0.0271
- --------------------------------------------------------------------------------
TOTAL $0.4275
- --------------------------------------------------------------------------------

8 | Annual Report

Performance Summary (CONTINUED)

PERFORMANCE 1

CUMULATIVE TOTAL RETURN EXCLUDES SALES CHARGES. AVERAGE ANNUAL TOTAL RETURNS AND
VALUE OF $10,000 INVESTMENT INCLUDE MAXIMUM SALES CHARGES. CLASS A: 5.75%
MAXIMUM INITIAL SALES CHARGE; CLASS C: 1% CONTINGENT DEFERRED SALES CHARGE IN
FIRST YEAR ONLY; ADVISOR CLASS: NO SALES CHARGES. THE FUND MAY CHARGE A 2% FEE
ON REDEMPTIONS MADE WITHIN SEVEN DAYS OF PURCHASE.

- --------------------------------------------------------------------------------
COMMENCEMENT
OF OPERATIONS
CLASS A 1-YEAR (6/16/06)
- --------------------------------------------------------------------------------
Cumulative Total Return 2 +8.81% +12.40%
- --------------------------------------------------------------------------------
Average Annual Total Return 3 +2.56% +5.26%
- --------------------------------------------------------------------------------
Value of $10,000 Investment 4 $10,256 $10,594
- --------------------------------------------------------------------------------
Avg. Ann. Total Return (6/30/07) 5 +12.15% +13.26%
- --------------------------------------------------------------------------------
Total Annual Operating Expenses 6
- --------------------------------------------------------------------------------
Without Waiver 1.61%
- --------------------------------------------------------------------------------
With Waiver 1.40%
- --------------------------------------------------------------------------------
COMMENCEMENT
OF OPERATIONS
CLASS C 1-YEAR (6/16/06)
- --------------------------------------------------------------------------------
Cumulative Total Return 2 +8.13% +11.60%
- --------------------------------------------------------------------------------
Average Annual Total Return 3 +7.13% +10.23%
- --------------------------------------------------------------------------------
Value of $10,000 Investment 4 $10,713 $11,160
- --------------------------------------------------------------------------------
Avg. Ann. Total Return (6/30/07) 5 +17.29% +19.20%
- --------------------------------------------------------------------------------
Total Annual Operating Expenses 6
- --------------------------------------------------------------------------------
Without Waiver 2.26%
- --------------------------------------------------------------------------------
With Waiver 2.05%
- --------------------------------------------------------------------------------
COMMENCEMENT
OF OPERATIONS
ADVISOR CLASS 1-YEAR (6/16/06)
- --------------------------------------------------------------------------------
Cumulative Total Return 2 +9.12% +12.83%
- --------------------------------------------------------------------------------
Average Annual Total Return 3 +9.12% +11.32%
- --------------------------------------------------------------------------------
Value of $10,000 Investment 4 $10,912 $11,283
- --------------------------------------------------------------------------------
Avg. Ann. Total Return (6/30/07) 5 +19.32% +20.32%
- --------------------------------------------------------------------------------
Total Annual Operating Expenses 6
- --------------------------------------------------------------------------------
Without Waiver 1.26%
- --------------------------------------------------------------------------------
With Waiver 1.05%
- --------------------------------------------------------------------------------

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

THE MANAGER AND ADMINISTRATOR HAVE CONTRACTUALLY AGREED TO LIMIT FUND EXPENSES
SO THAT TOTAL ANNUAL FUND OPERATING EXPENSES DO NOT EXCEED THE AMOUNT SHOWN WITH
WAIVER (OTHER THAN CERTAIN NON-ROUTINE EXPENSES) FOR EACH SHARE CLASS UNTIL
11/30/08.

Annual Report | 9

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT 1

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

AVERAGE ANNUAL TOTAL RETURN

- -------------------------------------
CLASS A 7/31/07
- -------------------------------------
1-Year +2.56%
- -------------------------------------
Commencement Of Operations
(6/16/06) +5.26%
- -------------------------------------

CLASS A (6/16/06-7/31/07)

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

Franklin Global Real S&P/Citigroup BMI
Date Estate Fund Global REIT Index 7
- ---------------------------------------------------------------------------
6/15/2006 $ 9,425 $ 10,000
6/30/2006 $ 9,566 $ 10,210
7/31/2006 $ 9,736 $ 10,603
8/31/2006 $ 9,981 $ 10,972
9/30/2006 $10,160 $ 11,217
10/31/2006 $10,631 $ 11,837
11/30/2006 $10,980 $ 12,465
12/31/2006 $11,349 $ 12,603
1/31/2007 $11,919 $ 13,425
2/28/2007 $11,939 $ 13,386
3/31/2007 $11,933 $ 13,341
4/30/2007 $11,992 $ 13,435
5/31/2007 $12,283 $ 13,523
6/30/2007 $11,386 $ 12,467
7/31/2007 $10,594 $ 11,651

AVERAGE ANNUAL TOTAL RETURN

- -------------------------------------
CLASS C 7/31/07
- -------------------------------------
1-Year +7.13%
- -------------------------------------
Commencement Of Operations
(6/16/06) +10.23%
- -------------------------------------

CLASS C (6/16/06-7/31/07)

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

Franklin Global Real S&P/Citigroup BMI
Date Estate Fund Global REIT Index 7
- ---------------------------------------------------------------------------
6/15/2006 $ 10,000 $ 10,000
6/30/2006 $ 10,150 $ 10,210
7/31/2006 $ 10,320 $ 10,603
8/31/2006 $ 10,580 $ 10,972
9/30/2006 $ 10,770 $ 11,217
10/31/2006 $ 11,260 $ 11,837
11/30/2006 $ 11,620 $ 12,465
12/31/2006 $ 12,004 $ 12,603
1/31/2007 $ 12,598 $ 13,425
2/28/2007 $ 12,619 $ 13,386
3/31/2007 $ 12,600 $ 13,341
4/30/2007 $ 12,651 $ 13,435
5/31/2007 $ 12,950 $ 13,523
6/30/2007 $ 12,008 $ 12,467
7/31/2007 $ 11,160 $ 11,651

10 | Annual Report

Performance Summary (CONTINUED)

ADVISOR CLASS (6/16/06-7/31/07)

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

Franklin Global Real S&P/Citigroup BMI
Date Estate Fund Global REIT Index 7
- ---------------------------------------------------------------------------
6/15/2006 $ 10,000 $ 10,000
6/30/2006 $ 10,160 $ 10,210
7/31/2006 $ 10,340 $ 10,603
8/31/2006 $ 10,600 $ 10,972
9/30/2006 $ 10,790 $ 11,217
10/31/2006 $ 11,290 $ 11,837
11/30/2006 $ 11,670 $ 12,465
12/31/2006 $ 12,061 $ 12,603
1/31/2007 $ 12,677 $ 13,425
2/28/2007 $ 12,708 $ 13,386
3/31/2007 $ 12,698 $ 13,341
4/30/2007 $ 12,760 $ 13,435
5/31/2007 $ 13,079 $ 13,523
6/30/2007 $ 12,126 $ 12,467
7/31/2007 $ 11,283 $ 11,651

AVERAGE ANNUAL TOTAL RETURN

- -------------------------------------
ADVISOR CLASS 7/31/07
- -------------------------------------
1-Year +9.12%
- -------------------------------------
Commencement Of Operations
(6/16/06) +11.32%
- -------------------------------------

ENDNOTES

INVESTING IN A NONDIVERSIFIED GLOBAL FUND CONCENTRATING IN REAL ESTATE
SECURITIES INVOLVES SPECIAL RISKS, SUCH AS DECLINES IN THE VALUE OF REAL ESTATE
AS WELL AS INCREASED SUSCEPTIBILITY TO ADVERSE ECONOMIC, POLITICAL OR REGULATORY
DEVELOPMENTS AFFECTING THE INDUSTRY. FOREIGN INVESTING, ESPECIALLY IN EMERGING
MARKETS, INVOLVES ADDITIONAL RISKS SUCH AS CURRENCY AND MARKET VOLATILITY, AS
WELL AS POLITICAL AND SOCIAL INSTABILITY. THE FUND'S PROSPECTUS ALSO INCLUDES A
DESCRIPTION OF THE MAIN INVESTMENT RISKS.

CLASS C: These shares have higher annual fees and expenses than Class A
shares.

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

1. The manager and administrator have contractually agreed to limit Fund
expenses so that total annual Fund operating expenses do not exceed the amount
shown with waiver (other than certain non-routine expenses) for each share class
until 11/30/08. If the manager and administrator had not taken this action, the
Fund's total returns would have been lower.

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

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

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

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

6. Figures are as stated in the Fund's prospectus current as of the date of this
report.

7. Source: Standard & Poor's Micropal. The S&P/Citigroup BMI Global REIT Index
is designed to measure performance of the investible universe of publicly traded
REITs. Index constituents generally derive more than 60% of revenue from real
estate development, management, rental, and/or direct investment in physical
property and with local REIT or property trust tax status.

Annual Report | 11

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

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

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

1. Divide your account value by $1,000.
IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."
IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

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

12 | Annual Report

Your Fund's Expenses (CONTINUED)

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

- ------------------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
CLASS A VALUE 2/1/07 VALUE 7/31/07 PERIOD* 2/1/07-7/31/07
- ------------------------------------------------------------------------------------------------------------------

Actual $1,000 $ 888.80 $ 6.56
- ------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,017.85 $ 7.00
- ------------------------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------------------------
Actual $1,000 $ 885.80 $ 9.59
- ------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,014.63 $10.24
- ------------------------------------------------------------------------------------------------------------------
ADVISOR CLASS
- ------------------------------------------------------------------------------------------------------------------
Actual $1,000 $ 890.10 $ 4.92
- ------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,019.59 $ 5.26
- ------------------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio, net of expense waivers,
for each class (A: 1.40%; C: 2.05%; and Advisor: 1.05%), multiplied by the
average account value over the period, multiplied by 181/365 to reflect the
one-half year period.

Annual Report | 13

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FRANKLIN GLOBAL REAL ESTATE FUND

-------------------------
YEAR ENDED JULY 31,
CLASS A 2007 2006 f
-------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ......................................................... $ 10.33 $ 10.00
-------------------------
Income from investment operations a:
Net investment income b ................................................................. 0.35 0.03
Net realized and unrealized gains (losses) .............................................. 0.59 0.30
-------------------------
Total from investment operations ........................................................... 0.94 0.33
-------------------------
Less distributions from:
Net investment income ................................................................... (0.37) --
Net realized gains ...................................................................... (0.03) --
-------------------------
Total distributions ........................................................................ (0.40) --
-------------------------
Redemption fees ............................................................................ -- e --
-------------------------
Net asset value, end of year ............................................................... $ 10.87 $ 10.33
=========================

Total return c ............................................................................. 8.81% 3.30%

RATIOS TO AVERAGE NET ASSETS d
Expenses before waiver and payments by affiliates and expense reduction .................... 1.86% 6.25%
Expenses net of waiver and payments by affiliates .......................................... 1.41% 2.09%
Expenses net of waiver and payments by affiliates and expense reduction .................... 1.40% 1.40%
Net investment income ...................................................................... 2.94% 2.21%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ............................................................ $ 33,409 $ 5,488
Portfolio turnover rate .................................................................... 81.30% 13.57%

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred sales
charges, if applicable, and is not annualized for periods less than one year.

d Ratios are annualized for periods less than one year.

e Amount rounds to less than $0.01 per share.

f For the period June 16, 2006 (commencement of operations) to July 31, 2006.

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

Franklin Global Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

-------------------------
YEAR ENDED JULY 31,
CLASS C 2007 2006 f
-------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ......................................................... $ 10.32 $ 10.00
-------------------------
Income from investment operations a:
Net investment income b ................................................................. 0.29 0.01
Net realized and unrealized gains (losses) .............................................. 0.58 0.31
-------------------------
Total from investment operations ........................................................... 0.87 0.32
-------------------------
Less distributions from:
Net investment income ................................................................... (0.34) --
Net realized gains ...................................................................... (0.03) --
-------------------------
Total distributions ........................................................................ (0.37) --
-------------------------
Redemption fees ............................................................................ -- e --
-------------------------
Net asset value, end of year ............................................................... $ 10.82 $ 10.32
=========================

Total return c ............................................................................. 8.13% 3.20%

RATIOS TO AVERAGE NET ASSETS d
Expenses before waiver and payments by affiliates and expense reduction .................... 2.51% 6.90%
Expenses net of waiver and payments by affiliates .......................................... 2.06% 2.74%
Expenses net of waiver and payments by affiliates and expense reduction .................... 2.05% 2.05%
Net investment income ...................................................................... 2.29% 1.56%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ............................................................ $ 9,192 $ 140
Portfolio turnover rate .................................................................... 81.30% 13.57%

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred sales
charges, if applicable, and is not annualized for periods less than one year.

d Ratios are annualized for periods less than one year.

e Amount rounds to less than $0.01 per share.

f For the period June 16, 2006 (commencement of operations) to July 31, 2006.

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

Franklin Global Trust

FINANCIAL HIGHLIGHTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

-------------------------
YEAR ENDED JULY 31,
ADVISOR CLASS 2007 2006 f
-------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ......................................................... $ 10.34 $ 10.00
-------------------------
Income from investment operations a:
Net investment income b ................................................................. 0.39 0.02
Net realized and unrealized gains (losses) .............................................. 0.59 0.32
-------------------------
Total from investment operations ........................................................... 0.98 0.34
-------------------------
Less distributions from:
Net investment income ................................................................... (0.40) --
Net realized gains ...................................................................... (0.03) --
-------------------------
Total distributions ........................................................................ (0.43) --
-------------------------
Redemption fees ............................................................................ -- e --
-------------------------
Net asset value, end of year ............................................................... $ 10.89 $ 10.34
=========================

Total return c ............................................................................. 9.12% 3.40%

RATIOS TO AVERAGE NET ASSETS d
Expenses before waiver and payments by affiliates and expense reduction .................... 1.51% 5.90%
Expenses net of waiver and payments by affiliates .......................................... 1.06% 1.74%
Expenses net of waiver and payments by affiliates and expense reduction .................... 1.05% 1.05%
Net investment income ...................................................................... 3.29% 2.56%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ............................................................ $ 34,631 $ 1,221
Portfolio turnover rate .................................................................... 81.30% 13.57%

b Based on average daily shares outstanding.

c Total return is not annualized for periods less than one year.

d Ratios are annualized for periods less than one year.

e Amount rounds to less than $0.01 per share.

f For the period June 16, 2006 (commencement of operations) to July 31, 2006.

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

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

- -----------------------------------------------------------------------------------------------------------------------------------
FRANKLIN GLOBAL REAL ESTATE FUND COUNTRY SHARES VALUE
- -----------------------------------------------------------------------------------------------------------------------------------

LONG TERM INVESTMENTS 90.2%
COMMON STOCKS 89.7%
EQUITY REIT - APARTMENTS 4.8%
AvalonBay Communities Inc. .................................................. United States 16,600 $ 1,792,303
Equity Residential .......................................................... United States 18,000 716,580
Nippon Accommodations Fund Inc. ............................................. Japan 52 368,343
Nippon Residential Investment Corp. ......................................... Japan 150 822,195
-------------
3,699,421
-------------
EQUITY REIT - DIVERSIFIED PROPERTY 17.7%
Allco Commercial Real Estate Investment Trust ............................... Singapore 2,042,380 1,495,311
British Land Co. PLC ........................................................ United Kingdom 70,320 1,777,074
Challenger Diversified Property Group ....................................... Australia 900,879 794,739
Charter Hall Group .......................................................... Australia 237,566 575,070
DB RREEF Trust .............................................................. Australia 411,150 636,055
General Property Trust ...................................................... Australia 195,745 752,463
GZI REIT .................................................................... Hong Kong 1,879,000 751,485
Liberty Property Trust ...................................................... United States 18,700 701,437
Mirvac Group ................................................................ Australia 142,589 624,694
Mori Hills REIT Investment Corp. ............................................ Japan 82 746,806
Stockland ................................................................... Australia 167,276 1,102,126
Valad Property Group ........................................................ Australia 757,706 1,194,787
Vornado Realty Trust ........................................................ United States 16,800 1,798,104
Wereldhave NV ............................................................... Netherlands 5,830 740,643
-------------
13,690,794
-------------
EQUITY REIT - HEALTH CARE 4.3%
Nationwide Health Properties Inc. ........................................... United States 73,700 1,756,271
OMEGA Healthcare Investors Inc. ............................................. United States 46,700 603,831
Ventas Inc. ................................................................. United States 30,600 998,172
-------------
3,358,274
-------------
EQUITY REIT - HOTELS 2.8%
Host Hotels & Resorts Inc. .................................................. United States 69,000 1,457,280
LaSalle Hotel Properties .................................................... United States 17,000 680,510
-------------
2,137,790
-------------
EQUITY REIT - INDUSTRIAL 7.1%
AMB Property Corp. .......................................................... United States 12,900 687,312
Ascendas REIT ............................................................... Singapore 128,000 228,798
Goodman Group ............................................................... Australia 200,163 1,037,302
Japan Logistics Fund Inc. ................................................... Japan 51 428,351
Mapletree Logistics Trust ................................................... Singapore 1,464,992 1,294,828
a Mapletree Logistics Trust, 144A ............................................. Singapore 240,800 212,830
ProLogis .................................................................... United States 27,600 1,570,440
-------------
5,459,861
-------------
EQUITY REIT - OFFICE 16.3%
BioMed Realty Trust Inc. .................................................... United States 20,400 445,536
Boston Properties Inc. ...................................................... United States 16,200 1,530,738

Annual Report | 17

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED)
EQUITY REIT - OFFICE (CONTINUED)
CapitaCommercial Trust ...................................................... Singapore 502,000 $ 880,760
Champion REIT ............................................................... Hong Kong 1,232,000 703,667
Commonwealth Property Office Fund ........................................... Australia 176,290 240,417
Digital Realty Trust Inc. ................................................... United States 20,400 676,260
Japan Real Estate Investment Co. ............................................ Japan 119 1,364,759
Kenedix Realty Investment Corp. ............................................. Japan 92 666,425
a Kenedix Realty Investment Corp., 144A ....................................... Japan 13 94,169
Macquarie Office Trust ...................................................... Australia 587,130 765,673
MID REIT Inc. ............................................................... Japan 221 1,025,003
Nippon Building Fund Inc. ................................................... Japan 51 679,513
Nippon Commercial Investment Corp. .......................................... Japan 115 504,280
Nomura Real Estate Office Fund Inc. ......................................... Japan 20 185,521
Orix Jreit Inc. ............................................................. Japan 76 598,592
Prosperity REIT ............................................................. Hong Kong 1,180,000 247,272
SL Green Realty Corp. ....................................................... United States 16,100 1,954,862
-------------
12,563,447
-------------
EQUITY REIT - OTHER 0.1%
JER Investors Trust Inc. .................................................... United States 3,900 42,783
-------------
EQUITY REIT - RETAIL 28.5%
CapitaMall Trust ............................................................ Singapore 459,000 1,138,342
b CapitaRetail China Trust .................................................... China 119,000 218,205
Centro Shopping America Trust ............................................... Australia 309,921 306,427
Eurocommercial Properties NV ................................................ Netherlands 20,660 1,012,536
General Growth Properties Inc. .............................................. United States 40,300 1,933,594
Hammerson PLC ............................................................... United Kingdom 29,810 726,690
Japan Retail Fund Investment Corp. .......................................... Japan 102 832,618
Kimco Realty Corp. .......................................................... United States 49,900 1,862,767
Land Securities Group PLC ................................................... United Kingdom 60,080 2,065,078
Liberty International PLC ................................................... United Kingdom 35,800 754,895
Macquarie CountryWide Trust ................................................. Australia 367,076 616,368
Macquarie DDR Trust ......................................................... Australia 608,532 619,825
Macquarie MEAG Prime REIT ................................................... Singapore 1,213,882 1,000,826
RioCan REIT ................................................................. Canada 35,500 751,992
Simon Property Group Inc. ................................................... United States 28,000 2,422,840
Taubman Centers Inc. ........................................................ United States 23,500 1,130,115
Unibail-Rodamco ............................................................. France 4,979 1,183,538
Westfield Group ............................................................. Australia 214,077 3,476,025
-------------
22,052,681
-------------
EQUITY REIT - STORAGE 1.0%
Public Storage .............................................................. United States 10,700 749,963
-------------

18 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED)
REAL ESTATE INVESTMENT & DEVELOPMENT 7.1%
Eurosic ..................................................................... France 11,210 $ 797,463
Koninklijke Vopak NV ........................................................ Netherlands 6,770 392,723
Macquarie Airports .......................................................... Australia 364,855 1,359,001
Norwegian Property ASA ...................................................... Norway 128,980 1,554,763
Songbird Estates PLC, B ..................................................... United Kingdom 117,310 588,028
Westshore Terminals Income Fund ............................................. Canada 62,000 822,289
-------------
5,514,267
-------------
TOTAL COMMON STOCKS (COST $72,508,849) ...................................... 69,269,281
-------------
PREFERRED STOCKS 0.5%
EQUITY REIT - OFFICE 0.5%
Highwoods Properties Inc., 8.00%, pfd., B ................................... United States 6,116 153,145
Maguire Properties Inc., 7.625%, pfd., A .................................... United States 9,375 217,125
-------------
TOTAL PREFERRED STOCKS (COST $386,978) ...................................... 370,270
-------------
TOTAL LONG TERM INVESTMENTS (COST $72,895,827) .............................. 69,639,551
-------------

----------------
PRINCIPAL AMOUNT
----------------

SHORT TERM INVESTMENT (COST $3,500,000) 4.5%
TIME DEPOSIT 4.5%
Paribas Corp., 5.34%, 8/01/07 ............................................... United States $ 3,500,000 3,500,000
-------------
TOTAL INVESTMENTS (COST $76,395,827) 94.7% .................................. 73,139,551
NET UNREALIZED LOSS ON FORWARD EXCHANGE CONTRACTS (1.0)% .................... (756,659)
OTHER ASSETS, LESS LIABILITIES 6.3% ......................................... 4,849,666
-------------
NET ASSETS 100.0% ........................................................... $ 77,232,558
=============

SELECTED PORTFOLIO ABBREVIATION

REIT - Real Estate Investment Trust

a Security was purchased pursuant to Rule 144A under the Securities Act of 1933
and may be sold in transactions exempt from registration only to qualified
institutional buyers or in a public offering registered under the Securities Act
of 1933. These securities have been deemed liquid under guidelines approved by
the Trust's Board of Trustees. At July 31, 2007, the value of these securities
was $306,999, representing 0.40% of net assets.

b Non-income producing for the twelve months ended July 31, 2007.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 19

Franklin Global Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
July 31, 2007

-------------
FRANKLIN
GLOBAL
REAL ESTATE
FUND
-------------

Assets:
Investments in securities:
Cost ............................................................ $ 76,395,827
=============
Value ........................................................... $ 73,139,551
Cash ............................................................... 392,460
Foreign currency, at value (cost $164,822) ......................... 165,474
Receivables:
Investment securities sold ...................................... 5,289,563
Capital shares sold ............................................. 384,685
Dividends ....................................................... 302,186
Unrealized gain on forward exchange contracts (Note 7) ............. 144,422
-------------
Total assets ................................................. 79,818,341
-------------
Liabilities:
Payables:
Investment securities purchased ................................. 1,007,606
Capital shares redeemed ......................................... 628,689
Affiliates ...................................................... 26,352
Unrealized loss on forward exchange contracts (Note 7) ............. 901,081
Accrued expenses and other liabilities ............................. 22,055
-------------
Total liabilities ............................................ 2,585,783
-------------
Net assets, at value ...................................... $ 77,232,558
=============
Net assets consist of:
Paid-in capital .................................................... $ 82,662,937
Undistributed net investment income ................................ 1,080,539
Net unrealized appreciation (depreciation) ......................... (4,010,858)
Accumulated net realized gain (loss) ............................... (2,500,060)
-------------
Net assets, at value ...................................... $ 77,232,558
=============

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
July 31, 2007

-------------
FRANKLIN
GLOBAL
REAL ESTATE
FUND
-------------

CLASS A:
Net assets, at value ............................................... $ 33,409,114
=============
Shares outstanding ................................................. 3,073,551
=============
Net asset value per share a ........................................ $ 10.87
=============
Maximum offering price per share (net asset value per
share / 94.25%) .................................................. $ 11.53
=============
CLASS C:
Net assets, at value ............................................... $ 9,192,046
=============
Shares outstanding ................................................. 849,468
=============
Net asset value and maximum offering price per share a ............. $ 10.82
=============
ADVISOR CLASS:
Net assets, at value ............................................... $ 34,631,398
=============
Shares outstanding ................................................. 3,180,027
=============
Net asset value and maximum offering price per share a ............. $ 10.89
=============

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

Annual Report |
The accompanying notes are an integral part of these financial statements. | 21

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the year ended July 31, 2007

-------------
FRANKLIN
GLOBAL
REAL ESTATE
FUND
-------------

Investment income:
Dividends (net of foreign taxes of $81,413) ........................................... $ 1,897,143
Interest .............................................................................. 147,320
-------------
Total investment income ......................................................... 2,044,463
-------------
Expenses:
Management fees (Note 3a) ............................................................. 375,333
Administrative fees (Note 3b) ......................................................... 93,833
Distribution fees: (Note 3c)
Class A ............................................................................ 70,013
Class C ............................................................................ 43,827
Transfer agent fees (Note 3e) ......................................................... 51,924
Custodian fees (Note 4) ............................................................... 7,537
Reports to shareholders ............................................................... 24,734
Registration and filing fees .......................................................... 67,019
Professional fees ..................................................................... 29,333
Trustees' fees and expenses ........................................................... 2,140
Amortization of offering costs ........................................................ 53,151
Other ................................................................................. 6,717
-------------
Total expenses .................................................................. 825,561
Expense reductions (Note 4) ..................................................... (2,685)
Expenses waived/paid by affiliates (Note 3f) .................................... (214,298)
-------------
Net expenses ................................................................. 608,578
-------------
Net investment income ..................................................... 1,435,885
-------------
Realized and unrealized losses:
Net realized gain (loss) from:
Investments ........................................................................ (833,617)
Foreign currency transactions ...................................................... (621,180)
-------------
Net realized gain (loss) .................................................. (1,454,797)
-------------
Net change in unrealized appreciation (depreciation) on:
Investments ........................................................................ (4,186,324)
Translation of assets and liabilities denominated in foreign currencies ............ 2,096
-------------
Net change in unrealized appreciation (depreciation) ...................... (4,184,228)
-------------
Net realized and unrealized gain (loss) .................................................. (5,639,025)
-------------
Net increase (decrease) in net assets resulting from operations .......................... $ (4,203,140)
=============

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

---------------------------
FRANKLIN GLOBAL
REAL ESTATE FUND
---------------------------
YEAR ENDED JULY 31,
2007 2006 a
---------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ................................................................... $ 1,435,885 $ 16,122
Net realized gain (loss) from investments and foreign currency transactions ............. (1,454,797) (7,027)
Net change in unrealized appreciation (depreciation) on investments and translation of
assets and liabilities denominated in foreign currencies ............................. (4,184,228) 173,370
---------------------------
Net increase (decrease) in net assets resulting from operations ................... (4,203,140) 182,465
---------------------------
Distributions to shareholders from:
Net investment income:
Class A .............................................................................. (552,979) --
Class C .............................................................................. (103,871) --
Advisor Class ........................................................................ (742,547) --
Net realized gains:
Class A .............................................................................. (28,561) --
Class C .............................................................................. (5,471) --
Advisor Class ........................................................................ (39,461) --
---------------------------
Total distributions to shareholders ........................................................ (1,472,890) --
---------------------------
Capital share transactions: (Note 2)
Class A .............................................................................. 30,514,540 5,315,548
Class C .............................................................................. 9,933,533 137,777
Advisor Class ........................................................................ 35,611,602 1,213,077
---------------------------
Total capital share transactions ........................................................... 76,059,675 6,666,402
---------------------------
Redemption fees ............................................................................ 46 --
---------------------------
Net increase (decrease) in net assets ............................................. 70,383,691 6,848,867
Net assets:
Beginning of year .......................................................................... 6,848,867 --
---------------------------
End of year ................................................................................ $ 77,232,558 $ 6,848,867
===========================
Undistributed net investment income included in net assets:
End of year ................................................................................ $ 1,080,539 $ 48,876
===========================

a For the period June 16, 2006 (commencement of operations) to July 31, 2006.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 23

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS

FRANKLIN GLOBAL REAL ESTATE FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Global Trust (the Trust) is registered under the Investment Company Act
of 1940, as amended, (the 1940 Act) as an open-end investment company,
consisting of eight separate funds. The Franklin Global Real Estate Fund (the
Fund) included in this report is non-diversified. The financial statements of
the remaining funds in the Trust are presented separately. The Fund offers three
classes of shares: Class A, Class C, and Advisor Class. Each class of shares
differs by its initial sales load, contingent deferred sales charges,
distribution fees, voting rights on matters affecting a single class and its
exchange privilege.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

24 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

value procedures, which may include the use of independent pricing services. All
security valuation procedures are approved by the Trust's Board of Trustees.

B. FOREIGN CURRENCY TRANSLATION

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

C. FOREIGN CURRENCY CONTRACTS

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

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

Annual Report | 25

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. FOREIGN CURRENCY CONTRACTS (CONTINUED)

D. INCOME TAXES

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

Foreign securities held by the Fund may be subject to foreign taxation on
dividend income received. Foreign taxes, if any, are recorded based on the tax
regulations and rates that exist in the foreign markets in which the Fund
invests.

E. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

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

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 of the Trust. Fund
specific expenses are charged directly to the fund that incurred the expense.

Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class. Differences in per share
distributions, by class, are generally due to differences in class specific
expenses.

Distributions received by the Fund from certain securities may be a return of
capital (ROC). Such distributions reduce the cost basis of the securities, and
any distributions in excess of the cost basis are recognized as capital gains.

26 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. OFFERING COSTS

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

G. ACCOUNTING ESTIMATES

H. REDEMPTION FEES

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

I. GUARANTEES AND INDEMNIFICATIONS

2. SHARES OF BENEFICIAL INTEREST

At July 31, 2007, there were an unlimited number of shares authorized (no par
value). Transactions in the Fund's shares were as follows:

--------------------------------------------------------------
YEAR ENDED JULY 31,
2007 2006 a
--------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------

CLASS A SHARES:
Shares sold ...................... 3,078,557 $ 36,862,501 531,780 $ 5,320,187
Shares issued in reinvestment
of distributions .............. 30,384 358,403 -- --
Shares redeemed .................. (566,717) (6,706,364) (453) (4,639)
--------------------------------------------------------------
Net increase (decrease) .......... 2,542,224 $ 30,514,540 531,327 $ 5,315,548
==============================================================

Annual Report | 27

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

2. SHARES OF BENEFICIAL INTEREST (CONTINUED)

CLASS C SHARES:
Shares sold ...................... 951,834 $ 11,306,579 13,569 $ 137,777
Shares issued in reinvestment
of distributions ................ 8,109 94,890 -- --
Shares redeemed .................. (124,044) (1,467,936) -- --
--------------------------------------------------------------
Net increase (decrease) .......... 835,899 $ 9,933,533 13,569 $ 137,777
==============================================================
ADVISOR CLASS SHARES:
Shares sold ...................... 3,195,707 $ 37,169,648 118,068 $ 1,213,077
Shares issued in reinvestment
of distributions ................. 6,292 72,808 -- --
Shares redeemed .................. (140,040) (1,630,854) -- --
--------------------------------------------------------------
Net increase (decrease) 3,061,959 $ 35,611,602 118,068 $ 1,213,077
=============================================================

a For the period June 16, 2006 (commencement of operations) to July 31, 2006.

3. TRANSACTIONS WITH AFFILIATES

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

A. MANAGEMENT FEES

The Fund pays an investment management fee to FT Institutional based on the
average daily net assets of the Fund as follows:

- -----------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
- -----------------------------------------------------------------------------
0.800% Up to and including $500 million
0.700% Over $500 million, up to and including $1 billion
0.650% Over $1 billion, up to and including $1.5 billion
0.600% Over $1.5 billion, up to and including $6.5 billion
0.580% Over $6.5 billion, up to and including $11.5 billion
0.560% Over $11.5 billion, up to and including $16.5 billion
0.540% Over $16.5 billion, up to and including $19 billion
0.530% Over $19 billion, up to and including $21.5 billion
0.520% In excess of $21.5 billion

28 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services of 0.20% per year of the
average daily net assets of the Fund.

C. DISTRIBUTION FEES

The Trust's Board of Trustees has adopted distribution plans for each share
class, with the exception of Advisor Class shares, pursuant to Rule 12b-1 under
the 1940 Act. Under the Fund's compensation distribution plans, the Fund pays
Distributors for costs incurred in connection with the servicing, sale and
distribution of the Fund's shares up to a certain percentage per year of its
average daily net assets of each class as follows:

Class A ......................................................... 0.35%
Class C ......................................................... 1.00%

D. SALES CHARGES/UNDERWRITING AGREEMENTS

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

Sales charges retained net of commissions paid to unaffiliated
broker/dealers ............................................... $ 103,765
Contingent deferred sales charges retained ...................... $ 2,851

E. TRANSFER AGENT FEES

For the year ended July 31, 2007, the Fund paid transfer agent fees of $51,924,
of which $30,017 was retained by Investor Services.

F. WAIVER AND EXPENSE REIMBURSEMENTS

FT Services and FT Institutional have agreed in advance to waive a portion of
their respective fees and to assume payment of other expenses through November
30, 2008. Total expenses waived are not subject to reimbursement by the Fund
subsequent to the Fund's fiscal year end. After November 30, 2008, FT Services
and FT Institutional may discontinue this waiver at any time upon notice to the
Fund's Board of Trustees

G. OTHER AFFILIATED TRANSACTIONS

At July 31, 2007, Franklin Advisers, Inc. owned 7.01% of the Fund's outstanding
shares.

Annual Report | 29

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

4. EXPENSE OFFSET ARRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the year ended July 31, 2007, the
custodian fees were reduced as noted in the Statement of Operations.

5. INCOME TAXES

During the year ended July 31, 2007, the Fund utilized $5,415 of capital loss
carryforwards.

For tax purposes, realized capital losses and realized currency losses occurring
subsequent to October 31, may be deferred and treated as occurring on the first
day of the following fiscal year. At July 31, 2007, the Fund deferred realized
capital losses and realized currency losses of $1,552,541 and $1,196,322,
respectively.

The tax character of distributions paid during the years ended July 31, 2007 and
July 31, 2006, was as follows:

-------------------------
2007 2006
-------------------------
Distributions paid from ordinary income ..... $ 1,472,890 $ --

At July 31, 2007, the cost of investments, net unrealized appreciation
(depreciation), undistributed ordinary income and undistributed long term
capital gains for income tax purposes were as follows:

Cost of investments ....................................... $ 78,829,051
=============

Unrealized appreciation ................................... $ 564,425
Unrealized depreciation ................................... (6,253,925)
-------------
Net unrealized appreciation (depreciation) ................ $ (5,689,500)
=============

Undistributed ordinary income ............................. $ 3,091,179
Undistributed long term capital gains ..................... 8,437
-------------
Distributable earnings .................................... $ 3,099,616
=============

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions, passive foreign
investment company shares, and offering costs.

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

30 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
year ended July 31, 2007, aggregated $103,329,332 and $35,781,576, respectively.

7. FORWARD EXCHANGE CONTRACTS

At July 31, 2007, the Fund had the following forward exchange contracts
outstanding:

- ------------------------------------------------------------------------------------------------------------
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN LOSS
- ------------------------------------------------------------------------------------------------------------

CONTRACTS TO BUY
521,559 Australian Dollar ................. 438,000 9/17/07 $ 5,869 $ --
535,601 Australian Dollar ................. 456,000 9/17/07 -- (180)
258,324 British Pound ..................... 523,000 9/17/07 1,395 --
2,541,188 Norwegian Krona ................... 430,000 9/17/07 6,398 --
3,604,463 Norwegian Krona ................... 630,000 9/17/07 -- (11,006)
897,569 Singapore Dollar .................. 595,000 9/17/07 -- (731)
65,331,588 Japanese Yen ...................... 543,000 9/18/07 11,518 --
76,476,960 Japanese Yen ...................... 648,000 9/18/07 1,117 --
83,429,846 Japanese Yen ...................... 698,000 9/18/07 10,132 --

CONTRACTS TO SELL
527,313 Australian Dollar ................. 459,000 9/17/07 10,233 --
601,947 Australian Dollar ................. 525,000 9/17/07 12,717 --
925,398 Australian Dollar ................. 795,000 9/17/07 7,446 --
1,147,002 Australian Dollar ................. 1,012,000 9/17/07 35,852 --
14,758,853 Australian Dollar ................. 12,361,425 9/17/07 -- (198,998)
217,832 British Pound ..................... 442,000 9/17/07 -- (196)
270,195 British Pound ..................... 549,000 9/17/07 508 --
373,369 British Pound ..................... 504,000 9/17/07 -- (7,668)
910,853 British Pound ..................... 1,833,000 9/17/07 -- (16,023)
1,699,585 British Pound ..................... 3,348,692 9/17/07 -- (101,450)
503,955 Canadian Dollar ................... 484,000 9/17/07 11,145 --
993,531 Canadian Dollar ................... 953,000 9/17/07 20,782 --
321,360 Euro .............................. 444,000 9/17/07 3,606 --
2,262,206 Euro .............................. 3,015,815 9/17/07 -- (84,331)
12,989,282 Hong Kong Dollar .................. 1,665,848 9/17/07 3,673 --
16,817,688 Norwegian Krona ................... 2,765,976 9/17/07 -- (122,123)
1,150,859 Singapore Dollar .................. 764,000 9/17/07 2,031 --
10,416,293 Singapore Dollar .................. 6,797,816 9/17/07 -- (98,681)
1,182,591,981 Japanese Yen ...................... 9,777,851 9/18/07 -- (259,694)
------------------------
Unrealized gain (loss) on forward exchange contracts ............................ 144,422 (901,081)
------------------------
Net unrealized gain (loss) on forward exchange contracts ..................... $ (756,659)
===========

a In U.S. Dollar unless otherwise indicated.

Annual Report | 31

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

8. CONCENTRATION OF RISK

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

9. REGULATORY AND LITIGATION MATTERS

32 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN GLOBAL REAL ESTATE FUND

10. NEW ACCOUNTING PRONOUNCEMENTS

Annual Report | 33

Franklin Global Trust

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

FRANKLIN GLOBAL REAL ESTATE FUND

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FRANKLIN GLOBAL TRUST

In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Franklin Global Real Estate Fund
(one of the funds constituting the Franklin Global Trust, hereafter referred to
as the "Fund") at July 31, 2007, the results of each of its operations for the
year then ended, and the changes in its net assets and the financial highlights
for the year then ended and for the period June 16, 2006 (commencement of
operations) through July 31, 2006, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at July 31, 2007 by correspondence with the custodian
and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 17, 2007

34 | Annual Report

Franklin Global Trust

TAX DESIGNATION (UNAUDITED)

FRANKLIN GLOBAL REAL ESTATE FUND

Under Section 852(b)(3)(C) of the Internal Revenue Code (Code), the Fund
designates the maximum amount allowable but no less than $8,437 as a long term
capital gain dividend for the fiscal year ended July 31, 2007.

Under Section 871(k)(2)(C) of the Code, the Fund designates the maximum amount
allowable but no less than $76,680 as a short term capital gain dividend for
purposes of the tax imposed under Section 871(a)(1)(A) of the Code for the
fiscal year ended July 31, 2007.

Under Section 854(b)(2) of the Code, the Fund designates the maximum amount
allowable but no less than $357,379 as qualified dividends for purposes of the
maximum rate under Section 1(h)(11) of the Code for the fiscal year ended July
31, 2007. In January 2008, shareholders will receive Form 1099-DIV which will
include their share of qualified dividends distributed during the calendar year
2007. 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, 2007 more than 50% of the 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 as allowed under Section 853 of the Code. This election will
allow shareholders of record in September 2007, 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, 2008,
semi-annual report of the Fund. In addition, in January 2008, shareholders will
receive Form 1099-DIV which will include their share of taxes withheld and
foreign source income distributed during the calendar year 2007.

Annual Report | 35

Franklin Global Trust

Franklin Global Real Estate Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED)

A Special Meeting of Shareholders of the Trust was held at the Trust's offices,
One Franklin Parkway, San Mateo, California on March 21, 2007. The purpose of
the meeting was to elect Trustees of the Trust and to vote on the following
Proposals and Sub-Proposals: to approve an Amended and Restated Agreement and
Declaration of Trust; and to approve amendments to certain of the Franklin
Templeton Global Real Estate Fund's (the "Fund") fundamental investment
restrictions (including five (5) Sub-Proposals). At the meeting, the following
persons were elected by the shareholders to serve as Independent Trustees of the
Trust: Harris J. Ashton, Robert F. Carlson, Sam Ginn, Edith E. Holiday, Frank W.
T. LaHaye, Frank A. Olson, Larry D. Thompson, and John B. Wilson. Charles B.
Johnson and Gregory E. Johnson were elected by the shareholders to serve as
Interested Trustees. Shareholders also approved the Amended and Restated
Agreement and Declaration of Trust and amendments to certain of the Fund's
fundamental investment restrictions (including five (5) Sub-Proposals). No other
business was transacted at the meeting.

Proposal 1. The Election of Trustees:

- -------------------------------------------------------------------------------------------------------
% OF % OF % OF % OF
OUTSTANDING VOTED OUTSTANDING VOTED
NAME FOR SHARES SHARES WITHHELD SHARES SHARES
- -------------------------------------------------------------------------------------------------------

Harris J. Ashton ............ 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Robert F. Carlson ........... 31,255,986.306 83.526% 99.951% 15,358.451 0.041% 0.049%
Sam Ginn .................... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Edith E. Holiday ............ 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Frank W. T. LaHaye .......... 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Frank A. Olson .............. 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Larry D. Thompson ........... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
John B. Wilson .............. 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Charles B. Johnson .......... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Gregory E. Johnson .......... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%

Proposal 2. To approve an Amended and Restated Agreement and Declaration of
Trust:

- -----------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- -----------------------------------------------------------------------
For ......................... 29,754,630.388 79.514% 95.151%
Against ..................... 5,747.015 0.015% 0.018%
Abstain ..................... 7,315.354 0.020% 0.023%
Broker non-votes ............ 1,503,652.000 4.018% 4.808%
- -----------------------------------------------------------------------
TOTAL ....................... 31,271,344.757 83.567% 100.000%

36 | Annual Report

Franklin Global Trust

Franklin Global Real Estate Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Fund's fundamental
investment restrictions (includes five (5) Sub-Proposals):

(a) To amend the Fund's fundamental investment restriction regarding
underwriting:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For ......................... 1,577,444.817 52.187% 82.611%
Against ..................... 7,114.379 0.236% 0.373%
Abstain ..................... 11,952.544 0.395% 0.626%
Broker Non-Votes ............ 312,970.000 10.354% 16.390%
- ------------------------------------------------------------------------
TOTAL ....................... 1,909,481.740 63.172% 100.000%

(b) To amend the Fund's fundamental investment restriction regarding lending:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For ......................... 1,577,239.218 52.181% 82.601%
Against ..................... 7,319.978 0.242% 0.384%
Abstain ..................... 11,952.544 0.395% 0.625%
Broker Non-Votes ............ 312,970.000 10.354% 16.390%
- ------------------------------------------------------------------------
TOTAL ....................... 1,909,481.740 63.172% 100.000%

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For ......................... 1,577,396.237 52.186% 82.609%
Against ..................... 7,114.379 0.235% 0.372%
Abstain ..................... 12,001.124 0.397% 0.629%
Broker Non-Votes ............ 312,970.000 10.354% 16.390%
- ------------------------------------------------------------------------
TOTAL ....................... 1,909,481.740 63.172% 100.000%

(d) To amend the Fund's fundamental investment restriction regarding investments
in commodities:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For ......................... 1,582,107.554 52.342% 82.856%
Against ..................... 7,137.412 0.236% 0.374%
Abstain ..................... 7,266.774 0.240% 0.380%
Broker Non-Votes ............ 312,970.000 10.354% 16.390%
- ------------------------------------------------------------------------
TOTAL ....................... 1,909,481.740 63.172% 100.000%

Annual Report | 37

Franklin Global Trust

Franklin Global Real Estate Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Fund's fundamental
investment restrictions (includes five (5) Sub-Proposals): (CONTINUED)

(e) To amend the Fund's fundamental investment restriction regarding industry
concentration:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For ......................... 1,582,130.587 52.342% 82.857%
Against ..................... 7,114.379 0.236% 0.372%
Abstain ..................... 7,266.774 0.240% 0.381%
Broker Non-Votes ............ 312,970.000 10.354% 16.390%
- ------------------------------------------------------------------------
TOTAL ....................... 1,909,481.740 63.172% 100.000%

38 | Annual Report

Franklin Global Trust

BOARD MEMBERS AND OFFICERS

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

INDEPENDENT BOARD MEMBERS

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

HARRIS J. ASHTON (1932) Trustee Since 2000 140 Director, Bar-S Foods (meat packing
One Franklin Parkway company).
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Private investor; and FORMERLY, Chairman of the Board, Vodafone AirTouch (wireless company), PLC; Chairman of the Board and Chief
Executive Officer, AirTouch Communications (cellular communications) (1993-1998) and Pacific Telesis Groups (telephone holding
company) (1988-1994).
- ------------------------------------------------------------------------------------------------------------------------------------
EDITH E. HOLIDAY (1952) Trustee Since 2000 140 Director, Hess Corporation (formerly,
One Franklin Parkway Amerada Hess Corporation) (explo-
San Mateo, CA 94403-1906 ration and refining of oil and gas),
H.J. Heinz Company (processed foods
and allied products), RTI International
Metals, Inc. (manufacture and distri-
bution of titanium), Canadian National
Railway (railroad) and White
Mountains Insurance Group, Ltd.
(holding company).

Annual Report | 39

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

FRANK W.T. LAHAYE (1929) Trustee Since 2000 121 Director, Center for Creative Land
One Franklin Parkway Recycling (brownfield 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).
- ------------------------------------------------------------------------------------------------------------------------------------
FRANK A. OLSON (1932) Trustee Since 2005 140 Director, Hess Corporation (formerly,
One Franklin Parkway Amerada Hess Corporation) (explo-
San Mateo, CA 94403-1906 ration and refining of oil and gas) and
Sentient Jet (private jet service).

INTERESTED BOARD MEMBERS AND OFFICERS

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

**CHARLES B. JOHNSON (1933) Trustee and Since 2000 140 None
One Franklin Parkway Chairman of
San Mateo, CA 94403-1906 the Board

40 | Annual Report

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

**GREGORY E. JOHNSON (1961) Trustee Since March 2007 91 None
One Franklin Parkway
San Mateo, CA 94403-1906

Annual Report | 41

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

DAVID P. GOSS (1947) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

42 | Annual Report

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

CRAIG S. TYLE (1960) Vice President Since 2005 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are brothers and the
father and uncle, respectively, of Gregory E. Johnson.

Note 2: Officer information is current as of the date of this report. It is
possible that after this date, information about officers may change.

Note 3: Prior to July 31, 2007, Harmon E. Burns, S. Joseph Fortunato, Rupert H.
Johnson, Jr. and Gordon S. Macklin ceased to be trustees of the Trust.

Annual Report | 43

Franklin Global Trust

SHAREHOLDER INFORMATION

FRANKLIN GLOBAL REAL ESTATE FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

At a meeting held February 27, 2007, the Board of Trustees (Board), including a
majority of non-interested or independent Trustees, approved renewal of the
investment management agreements for each of the separate funds within Franklin
Global Trust other than the recently formed Franklin Global Real Estate Fund
whose investment management agreement was not up for renewal.

PROXY VOTING POLICIES AND PROCEDURES

QUARTERLY STATEMENT OF INVESTMENTS

44 | Annual Report

Literature Request

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

FRANKLIN TEMPLETON FUNDS

INTERNATIONAL

Mutual European Fund
Templeton BRIC Fund
Templeton China World Fund
Templeton Developing Markets Trust
Templeton Emerging Markets Small Cap Fund
Templeton Foreign Fund
Templeton Foreign Smaller Companies Fund 1

GLOBAL

Mutual Discovery Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund 1
Templeton Growth Fund
Templeton World Fund

GROWTH

Franklin Aggressive Growth Fund
Franklin Capital Growth Fund
Franklin Flex Cap Growth Fund
Franklin Small Cap Growth Fund II 2
Franklin Small-Mid Cap Growth Fund

VALUE

Franklin Balance Sheet Investment Fund 1
Franklin Equity Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund 1
Franklin MidCap Value Fund
Franklin Small Cap Value Fund
Mutual Beacon Fund
Mutual Qualified Fund
Mutual Recovery Fund 3
Mutual Shares Fund

BLEND

Franklin Balanced Fund
Franklin Convertible Securities Fund
Franklin Growth Fund
Franklin Rising Dividends Fund

SECTOR

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

ASSET ALLOCATION

Franklin Templeton Corefolio(R) Allocation Fund
Franklin Templeton Founding Funds Allocation Fund
Franklin Templeton Perspectives Allocation Fund
Franklin Templeton Conservative Target Fund
Franklin Templeton Growth Target Fund
Franklin Templeton Moderate Target Fund
Franklin Templeton 2015 Retirement Target Fund
Franklin Templeton 2025 Retirement Target Fund
Franklin Templeton 2035 Retirement Target Fund
Franklin Templeton 2045 Retirement Target Fund

INCOME

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

TAX-FREE INCOME 6

NATIONAL FUNDS

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

LIMITED-TERM FUNDS

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

INTERMEDIATE-TERM FUNDS

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

STATE-SPECIFIC

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

INSURANCE FUNDS

Franklin Templeton Variable Insurance Products Trust 9

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

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

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

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

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

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

7. The fund invests primarily in insured municipal securities.

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

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

05/07 Not part of the annual report

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

- - WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL?

Eligible shareholders can sign up for eDelivery at
franklintempleton.com. See inside for details.

ANNUAL REPORT AND SHAREHOLDER LETTER

FRANKLIN GLOBAL REAL ESTATE FUND

INVESTMENT MANAGER

Franklin Templeton Institutional, LLC

DISTRIBUTOR

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

SHAREHOLDER SERVICES

1-800/632-2301

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

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

495 A2007 09/07

[GRAPHIC OMITTED]

- --------------------------------------------------------------------------------
ANNUAL REPORT 07 31 2007
- --------------------------------------------------------------------------------

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

FRANKLIN GLOBAL TRUST

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

Franklin Templeton Emerging Market Debt Opportunities Fund

[LOGO](R)
FRANKLIN TEMPLETON
INSTITUTIONAL

Contents

ANNUAL REPORT

Franklin Templeton Emerging Market Debt Opportunities Fund ................ 1

Performance Summary ....................................................... 7

Your Fund's Expenses ...................................................... 9

Financial Highlights and Statement of Investments ......................... 11

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

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

Report of Independent Registered Public Accounting Firm ................... 29

Tax Designation ........................................................... 30

Meeting of Shareholders ................................................... 31

Board Members and Officers ................................................ 33

Shareholder Information ................................................... 38

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

Annual Report

Franklin Templeton Emerging Market Debt Opportunities Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin Templeton Emerging Market Debt
Opportunities Fund seeks high total return through investing in debt securities
of emerging market countries, mainly securities issued by sovereign and
sub-sovereign government entities, but also including securities issued by
corporate entities.

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

PORTFOLIO BREAKDOWN
Based on Total Net Assets as of 7/31/07

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

Foreign Government & Agency Securities ................................. 64.5%
Corporate Bonds ........................................................ 19.1%
Warrants ............................................................... 5.5%
Short-Term Investments & Other Net Assets .............................. 10.9%

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

We are pleased to bring you Franklin Templeton Emerging Market Debt
Opportunities Fund's annual report for the fiscal year ended July 31, 2007.

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 12.

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

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

Annual Report | 1

- --------------------------------------------------------------------------------
PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE CALL A FRANKLIN TEMPLETON INSTITUTIONAL SERVICES
REPRESENTATIVE AT 1-800/321-8563 FOR MOST RECENT MONTH-END PERFORMANCE.
- --------------------------------------------------------------------------------

PERFORMANCE OVERVIEW

Franklin Templeton Emerging Market Debt Opportunities Fund posted a +13.75%
cumulative total return for the 12 months ended July 31, 2007. The Fund
outperformed its benchmarks, the J.P. Morgan (JPM) Emerging Markets Bond Index
(EMBI) Global Diversified Index and JPM Global Bond Index (GBI) Emerging Markets
(EM) Broad Diversified Index, which returned +7.16% and +19.78% during the same
period. 1 You can find more performance data in the Performance Summary
beginning on page 7.

ECONOMIC AND MARKET OVERVIEW

During the fiscal year ended July 31, 2007, market expectations for U.S.
monetary policy influenced emerging market debt performance. Although the U.S.
Federal Reserve Board's (Fed's) federal funds target rate remained unchanged at
5.25% during the period, inflationary concerns decreased slightly, while U.S.
real economic growth moderated due in part to the weakening housing sector and
subsequent turmoil in the subprime mortgage market.

According to the federal funds futures contract, market expectations for the
federal funds target rate changed during the reporting period. At the beginning
of the period, the 12-month forward outlook was for a 5.27% rate by July 2007,
but at the end of the period, the 12-month outlook was for a 4.75% rate by July
2008. The markets seemed to expect the Fed to ease its monetary policy to
counter severe asset repricing that occurred across much of the credit spectrum
late in the period. The 10-year Treasury note yield reflected some of this
sentiment, beginning the Fund's fiscal year at 4.99% and ending at 4.78%. This
was a helpful backdrop for those emerging market borrowers that traded at a
small yield premium over Treasuries.

The latter half of the reporting period was marked by increasing concerns about
the U.S. mortgage market and the extent of its spillover effect on the global
economy, as well as about the weakening U.S. dollar. Consequently, U.S.
dollar-denominated emerging market debt, as measured by the JPM EMBI Global
Diversified Index, returned +7.16% for the 12 months under review. 1 Emerging

1. Source: J.P. Morgan. The JPM EMBI Global Diversified Index is a uniquely
weighted version of the JPM EMBI Global Index, which tracks total returns for
U.S. dollar-denominated debt instruments issued by emerging market sovereign and
quasi-sovereign entities: Brady bonds, loans and Eurobonds. The index includes
all countries except those that have been classified by the World Bank as high
income for the past two consecutive years. The diversified index limits the
weights of those index countries with larger debt stocks by only including
specified portions of these countries' eligible current face amounts of debt
outstanding. Both indexes cover the same countries. The JPM GBI EM Broad
Diversified Index tracks local currency government bonds issued by emerging
markets. The index limits the weights of those index countries with larger debt
stocks and redistributes those weights to the countries with smaller weights,
with a maximum 10% country weight allowed. The indexes are unmanaged and include
reinvested interest. One cannot invest directly in an index, nor is an index
representative of the Fund's portfolio.

2 | Annual Report

market sovereign debt spreads over U.S. Treasuries widened by 27 basis points
(100 basis points equal one percentage point), from 210 to 237. 2 However, local
government bond markets, as measured by the JPM GBI EM Broad Diversified Index,
performed significantly better, returning +19.78% (in unhedged U.S. dollars) for
the same period. 1 This strong result was partially due to falling local yields
stemming mainly from contained inflation and strong real global economic growth,
and also due to local currency performance against the weaker U.S. dollar.
Overall global growth for 2007 was revised up from a 4.9% estimate in April 2007
to 5.2% by period-end, led by China (+11.2%), India (+9.0%) and Russia
(+7.0%). 3

Emerging market liquidity remained high during the Fund's fiscal year. Global
capital flows into emerging market debt securities were robust and diverse.
Excess reserves in Europe, Asia and the Middle East supported positive economic
growth trends within many emerging markets, often where local central banks
raised interest rates to counter inflation. Also, local institutional investors
in emerging bond markets, notably Latin America, seemed relatively immune to
U.S. dollar declines. With increasing risk in some local equity markets -- such
as in China during late February 2007 -- investor demand for local currency
bonds increased.

Investors' risk appetite for emerging market debt assets withstood volatility,
and higher interest rates for local currency sovereign bonds than for U.S.
dollar-denominated bonds attracted many investors. Thus, investors generally
maintained their positions in certain local bond markets.

Finally, economic and fiscal fundamentals in emerging markets remained strong by
historical standards. With higher foreign exchange reserves, many emerging
markets appeared better equipped to absorb external shocks, and demonstrated
that globalization does not necessarily result in contagion. Thus, from a credit
perspective, emerging market debt, especially local currency bonds, appeared
attractive to most investors and offered strong returns.

INVESTMENT STRATEGY

Our portfolio construction process can be summarized in three integral steps --
country allocation, currency allocation and issue selection. The first stage of
our emerging market debt investment process is identifying the countries for
which we have a favorable outlook, which we manage with a bottom-up
research-driven perspective. Since the portfolio is constructed through
bottom-up fundamental research and not relative to a benchmark index, there is
no

GEOGRAPHIC BREAKDOWN
7/31/07

- --------------------------------------------------------------------------------
% OF TOTAL
COUNTRY NET ASSETS
- --------------------------------------------------------------------------------
South Africa 7.9%
- --------------------------------------------------------------------------------
Russia 6.5%
- --------------------------------------------------------------------------------
Iraq 6.1%
- --------------------------------------------------------------------------------
Poland 5.4%
- --------------------------------------------------------------------------------
Zambia 4.5%
- --------------------------------------------------------------------------------
Kazakhstan 4.5%
- --------------------------------------------------------------------------------
Peru 4.2%
- --------------------------------------------------------------------------------
Mexico 4.1%
- --------------------------------------------------------------------------------
Venezuela 4.1%
- --------------------------------------------------------------------------------
Ivory Coast 3.6%
- --------------------------------------------------------------------------------
Brazil 3.6%
- --------------------------------------------------------------------------------
El Salvador 3.4%
- --------------------------------------------------------------------------------
Jordan 2.9%
- --------------------------------------------------------------------------------
Serbia 2.8%
- --------------------------------------------------------------------------------
Ukraine 2.7%
- --------------------------------------------------------------------------------
Ghana 2.7%
- --------------------------------------------------------------------------------
Dominican Republic 2.2%
- --------------------------------------------------------------------------------
Trinidad & Tobago 2.1%
- --------------------------------------------------------------------------------
Ecuador 2.1%
- --------------------------------------------------------------------------------
Other 14.8%
- --------------------------------------------------------------------------------
Short-Term Investments & Other Net Assets 9.8%
- --------------------------------------------------------------------------------

2. Source: J.P. Morgan.

3. Source: International Monetary Fund.

Annual Report | 3

CURRENCY BREAKDOWN
7/31/07

- --------------------------------------------------------------------------------
% OF TOTAL
CURRENCY NET ASSETS
- --------------------------------------------------------------------------------
U.S. Dollar 50.5%
- --------------------------------------------------------------------------------
Euro 13.0%
- --------------------------------------------------------------------------------
Japanese Yen 6.1%
- --------------------------------------------------------------------------------
South African Rand 5.7%
- --------------------------------------------------------------------------------
Mexican Peso 4.1%
- --------------------------------------------------------------------------------
Brazilian Real 3.6%
- --------------------------------------------------------------------------------
Ukrainian Hryvna 2.7%
- --------------------------------------------------------------------------------
Ghanian Cedi 2.7%
- --------------------------------------------------------------------------------
Zambian Kwacha 4.5%
- --------------------------------------------------------------------------------
Other 7.1%
- --------------------------------------------------------------------------------

requirement to hold issues in any one country. The next decision is whether to
take exposure in the form of "hard currency" or local currency instruments. Hard
currencies are currencies in which investors have confidence and are typically
currencies of economically and politically stable industrialized nations. The
last decision concerns security selection. This depends on the shape of the
sovereign spread curve and the type of the issue's coupon (fixed or floating).
We may seek to manage the Fund's exposure to various currencies, and may from
time to time seek to hedge (protect) against currency risk, largely by using
forward currency exchange contracts.

MANAGER'S DISCUSSION

At period-end, the Fund held securities representing 31 emerging market
countries. We held 28 securities in G7 currencies, of which 22 securities,
comprising 42.5% of the Fund's total net assets, held an underlying currency
risk in the U.S. dollar, while five were in the euro and one was in the Japanese
yen. 4 Twenty-three Fund holdings had an underlying currency risk in the local
currencies of Brazil, Egypt, Ghana, Ivory Coast, Malawi, Mauritius, Mexico,
Nigeria, South Africa, Turkey, Ukraine, Vietnam and Zambia. The Fund's overall
exposure to local currencies was 28.5% of total net assets at period-end.

The Fund benefited from its exposure to Brazilian real nominal and real bonds.
Not only did the Brazilian real appreciate versus the U.S. dollar during the
year under review, but local government bond yields also fell substantially with
the yield on the Brazil component of the JPM GBI EM Broad Diversified Index
falling from 14.5% to 10.9%. 5

4. The G7, or Group of Seven, is an informal but exclusive body that seeks to
boost cooperation over trade and finance, strengthen the global economy, promote
peace and democracy, and prevent and resolve conflicts. The G7 includes Canada,
France, Germany, Italy, Japan, the U.K. and the U.S. It is now known as the G8,
or Group of Eight, after the addition of Russia in 1997.

5. Source: J.P. Morgan. See footnote 1 for a description of the JPM GBI EM Broad
Diversified Index.

4 | Annual Report

Other strong performers by country included Ivory Coast, Nigeria and Turkey. The
Ivory Coast's defaulted Brady bonds and domestic debt denominated in the local
currency, West African francs, which are pegged to the euro, had solid returns.
The country's peace process led to the formation of a new coalition government
after years of conflict between the north and the south, which supported bond
performance. By period-end, the country was also granted a World Bank loan and
International Monetary Fund (IMF) Emergency Post Conflict Assistance. Nigerian
bonds rose in value mainly due to high global oil prices that directly benefited
this oil-exporting country. Turkey's bond market made gains prior to general
elections and also due to strong foreign direct investment flows fostered by
continuing real economic growth. We essentially halved the Fund's exposure to
the Turkish lira in an effort to reduce market risk we believed was embedded in
this dominantly foreign-owned local bond market.

The worst performing country in the Fund's portfolio was Iraq, mainly because
the local security situation remained a major concern. However, the government
of Shiite Nouri Al-Maliki was able to pass new oil legislation toward
period-end, which holds the possibility of allowing foreign oil companies future
access to Iraqi oil fields to provide its destroyed economy with new
infrastructure and labor demand. The other disappointing investment was Zambia,
which suffered from a depreciating kwacha and a slight increase in local yields.
These were the only Fund positions that lost value during this fiscal year.

During the year under review, we initiated or increased exposure to 18
countries: Egypt, Argentina, Colombia, Dominican Republic, Ecuador, Fiji, Ghana,
Grenada, Jordan, Malawi, Mauritius, Moldova, Nigeria, Democratic People's
Republic of Korea, Trinidad and Tobago, Ukraine, Vietnam and Zambia. We also
added two corporate bonds to the Fund's portfolio, a Russian major commercial
bank and a South African retailer.

The Fund took profits in its Indonesian investments in June 2007, when we sold a
strong-performing bond, thereby eliminating the Fund's exposure to the rupiah.
Additionally, we sold our Nigerian local government bonds denominated in naira
because of decreasing yields.

TOP 10 HOLDINGS
7/31/07

- --------------------------------------------------------------------------------
ISSUE % OF TOTAL
SECTOR, COUNTRY NET ASSETS
- --------------------------------------------------------------------------------
Government of Iraq, FRN 6.1%
FOREIGN GOVERNMENT & AGENCY
SECURITIES, IRAQ
- --------------------------------------------------------------------------------
Elektrownia Turow BV 5.2%
CORPORATE BONDS, POLAND
- --------------------------------------------------------------------------------
Government of Mexico 4.1%
FOREIGN GOVERNMENT & AGENCY
SECURITIES, MEXICO
- --------------------------------------------------------------------------------
Nota Do Tesouro Nacional, Index Linked 3.5%
FOREIGN GOVERNMENT & AGENCY
SECURITIES, BRAZIL
- --------------------------------------------------------------------------------
Government of Peru 3.5%
FOREIGN GOVERNMENT & AGENCY
SECURITIES, PERU
- --------------------------------------------------------------------------------
Government of South Africa 3.4%
FOREIGN GOVERNMENT & AGENCY
SECURITIES, SOUTH AFRICA
- --------------------------------------------------------------------------------
Government of Russia, Reg S 3.4%
FOREIGN GOVERNMENT & AGENCY
SECURITIES, RUSSIA
- --------------------------------------------------------------------------------
Republic of El Salvador, Reg S 3.3%
FOREIGN GOVERNMENT & AGENCY
SECURITIES, EL SALVADOR
- --------------------------------------------------------------------------------
Republic of Venezuela, Oil Value
Recovery 3.3%
WARRANTS, VENEZUELA
- --------------------------------------------------------------------------------
Alfa Medium Term Note for ABH
Financial, 144A 3.0%
CORPORATE BONDS, RUSSIA
- --------------------------------------------------------------------------------

Annual Report | 5

We thank you for your confidence in Franklin Templeton Emerging Market Debt
Opportunities Fund and hope to serve your future investment needs at the highest
level of expectations.

[PHOTO OMITTED] /s/ William Ledward

William Ledward
Portfolio Manager and Research Analyst of
Franklin Templeton Investment Management Ltd.
Fixed Income Group

[PHOTO OMITTED] /s/ Claire Husson

Claire Husson
Portfolio Manager and Research Analyst of
Franklin Templeton Investment Management Ltd.
Fixed Income Group

Portfolio Management Team
Franklin Templeton Emerging Market Debt
Opportunities Fund

6 | Annual Report

Performance Summary as of 7/31/07

PRICE AND DISTRIBUTION INFORMATION

- ------------------------------------------------------------------------------------------
SYMBOL: FEMDX CHANGE 7/31/07 7/31/06
- ------------------------------------------------------------------------------------------

Net Asset Value (NAV) +$1.06 $11.25 $10.19
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS (8/1/06-7/31/07)
- ------------------------------------------------------------------------------------------
Dividend Income $0.3202
- ------------------------------------------------------------------------------------------
Short-term Capital Gain $0.0069
- ------------------------------------------------------------------------------------------
TOTAL $0.3271
- ------------------------------------------------------------------------------------------

PERFORMANCE 1

THE FUND MAY CHARGE A 2% FEE ON SHARES REDEEMED WITHIN SEVEN DAYS OF PURCHASE.

- ------------------------------------------------------------------------------------------
1-YEAR INCEPTION (5/24/06)
- ------------------------------------------------------------------------------------------

Cumulative Total Return 2 +13.75% +15.91%
- ------------------------------------------------------------------------------------------
Average Annual Total Return 3 +13.75% +13.25%
- ------------------------------------------------------------------------------------------
Value of $50,000 Investment 4 $56,876 $57,957
- ------------------------------------------------------------------------------------------
Avg. Ann. Total Return (6/30/07) 5 +16.49% +14.35%
- ------------------------------------------------------------------------------------------
Total Annual Operating Expenses 6
- ------------------------------------------------------------------------------------------
Without Waiver 1.28%
- ------------------------------------------------------------------------------------------
With Waiver 1.10%
- ------------------------------------------------------------------------------------------

THE MANAGER AND ADMINISTRATOR HAVE CONTRACTUALLY AGREED TO LIMIT FUND EXPENSES
SO THAT TOTAL ANNUAL FUND OPERATING EXPENSES DO NOT EXCEED 1.10% (OTHER THAN
CERTAIN NON-ROUTINE EXPENSES) UNTIL 11/30/08.

Annual Report | 7

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $50,000 INVESTMENT 1

Total return represents the change in value of an investment over the periods
shown. It includes Fund expenses, account fees and reinvested distributions. The
indexes are unmanaged and include reinvestment of any income or distributions.
They differ from the Fund in composition and do not pay management fees or
expenses. One cannot invest directly in an index.

AVERAGE ANNUAL TOTAL RETURN

- ----------------------------------------
7/31/07
- ----------------------------------------
1-Year +13.75%
- ----------------------------------------
Since Inception (5/24/06) +13.25%
- ----------------------------------------

5/24/06-7/31/07

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

Franklin Templeton
Emerging Market Debt JPM EMBI Global JPM GBI EM Broad
Calendar Month Opportunities Fund Diversified Index 7 Diversified Index 7
May-06 $ 49,900 $ 49,791 $ 50,114
Jun-06 $ 49,750 $ 49,609 $ 49,121
Jul-06 $ 50,950 $ 51,156 $ 50,677
Aug-06 $ 51,800 $ 52,471 $ 51,248
Sep-06 $ 51,750 $ 52,781 $ 51,114
Oct-06 $ 53,000 $ 53,814 $ 53,212
Nov-06 $ 53,350 $ 54,452 $ 54,682
Dec-06 $ 53,986 $ 54,792 $ 55,760
Jan-07 $ 54,192 $ 54,706 $ 55,359
Feb-07 $ 55,172 $ 55,612 $ 55,919
Mar-07 $ 55,739 $ 56,126 $ 57,431
Apr-07 $ 57,235 $ 56,554 $ 59,143
May-07 $ 57,956 $ 56,336 $ 60,109
Jun-07 $ 57,957 $ 55,265 $ 59,943
Jul-07 $ 57,957 $ 54,678 $ 60,699

ENDNOTES

SPECIAL RISKS ARE ASSOCIATED WITH FOREIGN INVESTING, INCLUDING CURRENCY
VOLATILITY, ECONOMIC INSTABILITY AND SOCIAL AND POLITICAL DEVELOPMENTS OF
COUNTRIES WHERE THE FUND INVESTS. EMERGING MARKETS INVOLVE HEIGHTENED RISKS
RELATED TO THE SAME FACTORS, IN ADDITION TO THOSE ASSOCIATED WITH THEIR
RELATIVELY SMALL SIZE AND LESSER LIQUIDITY. ALSO, AS A NONDIVERSIFIED INVESTMENT
COMPANY, THE FUND MAY INVEST IN A RELATIVELY SMALL NUMBER OF ISSUERS AND, AS A
RESULT, BE SUBJECT TO A GREATER RISK OF LOSS WITH RESPECT TO ITS PORTFOLIO
SECURITIES.

1. The manager and administrator have contractually agreed to limit Fund
expenses so that total annual Fund operating expenses do not exceed 1.10% (other
than certain non-routine expenses) until 11/30/08. If the manager and
administrator had not taken this action, the Fund's total returns would have
been lower.

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

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

4. This figure represents the value of a hypothetical $50,000 investment in the
Fund over the periods indicated.

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

6. Figures are as stated in the Fund's prospectus current as of the date of this
report.

7. Source: J.P. Morgan. The JPM EMBI Global Diversified Index is a uniquely
weighted version of the JPM EMBI Global Index, which tracks total returns for
U.S. dollar-denominated debt instruments issued by emerging market sovereign and
quasi-sovereign entities: Brady bonds, loans and Eurobonds. The index includes
all countries except those that have been classified by the World Bank as high
income for the past two consecutive years. The diversified index limits the
weights of those index countries with larger debt stocks by only including
specified portions of these countries' eligible current face amounts of debt
outstanding. Both indexes cover the same countries. The JPM GBI EM Broad
Diversified Index tracks local currency government bonds issued by emerging
markets. The index limits the weights of those index countries with larger debt
stocks and redistributes those weights to the countries with smaller weights,
with a maximum 10% country weight allowed.

8 | Annual Report

Your Fund's Expenses

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

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

ACTUAL FUND EXPENSES

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

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

1. Divide your account value by $1,000.
IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."
IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Annual Report | 9

Your Fund's Expenses (CONTINUED)

Actual $1,000 $1,069.50 $5.64
- -------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,019.34 $5.51
- -------------------------------------------------------------------------------------------------------

*Expenses are equal to the annualized expense ratio, net of expense waivers, of
1.10%, multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.

10 | Annual Report

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

--------------------
YEAR ENDED
JULY 31,
2007 2006 e
--------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year ........................................... $ 10.19 $ 10.00
--------------------
Income from investment operations a:
Net investment income b ................................................... 0.76 0.08
Net realized and unrealized gains (losses) ................................ 0.63 0.11
--------------------
Total from investment operations ............................................. 1.39 0.19
--------------------
Less distributions from:
Net investment income ..................................................... (0.32) --
Net realized gains ........................................................ (0.01) --
--------------------
Total distributions .......................................................... (0.33) --
--------------------
Net asset value, end of year ................................................. $ 11.25 $ 10.19
====================

Total return c ............................................................... 13.75% 1.90%

RATIOS TO AVERAGE NET ASSETS d
Expenses before waiver and payments by affiliates and expense reduction ...... 1.35% 4.34%
Expenses net of expense reduction ............................................ 1.34% 4.34%
Expenses net of waiver and payments by affiliates and expense reduction ...... 1.10% 1.10%
Net investment income ........................................................ 7.03% 4.07%

SUPPLEMENTAL DATA
Net assets, end of year (000's) .............................................. $ 56,822 $ 9,377
Portfolio turnover rate ...................................................... 65.54% 38.29%

b Based on average daily shares outstanding.

c Total return is not annualized for periods less than one year.

d Ratios are annualized for periods less than one year.

e For the period May 24, 2006 (commencement of operations) to July 31, 2006.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 11

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND COUNTRY WARRANTS VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

LONG TERM INVESTMENTS 80.3%
WARRANTS 5.5%
Central Bank of Nigeria, wts., 11/15/20 ............................ Nigeria 4,500 $ 1,066,500
Government of Venezuela, Oil Value Recovery wts., 4/15/20 .......... Venezuela 55,000 2,062,500
--------------
TOTAL WARRANTS (COST $2,982,250) ................................... 3,129,000
--------------

--------------------
PRINCIPAL AMOUNT a
--------------------

CORPORATE BONDS 19.1%
APPAREL RETAIL 2.2%
b,c Edcon Proprietary Ltd., senior secured note, Reg S, FRN, 7.395%,
6/15/14 .......................................................... South Africa 1,000,000 EUR 1,238,221
--------------
CONSUMER FINANCE 3.0%
d Alfa Medium Term Note for ABH Financial, 144A, 8.20%,
6/25/12 .......................................................... Russia 1,700,000 1,720,765
--------------
ELECTRICAL EQUIPMENT 6.3%
d Ege Haina Finance Co., senior note, 144A, 9.50%, 4/26/17 ........... Dominican Republic 580,000 575,650
Elektrownia Turow BV, 9.75%, 3/14/11 ............................... Poland 1,950,000 EUR 2,990,366
--------------
3,566,016
--------------
OIL, GAS & CONSUMABLE FUELS 2.1%
d Petro Co. Trin/Tobago Ltd., senior note, 144A, 6.00%, 5/08/22 ...... Trinidad and Tobago 1,200,000 1,178,706
--------------
ROAD & RAIL 2.5%
Kazakhstan Temir Zholy, 7.00%, 5/11/16 ............................. Kazakhstan 1,400,000 1,435,014
--------------
TELECOMMUNICATIONS 1.1%
b Ghana Telecommunications Co. Ltd., FRN,17.70%, 12/20/10 ............ Ghana 565,000 GHC 610,073
--------------
THRIFTS & MORTGAGE FINANCE 1.9%
Astana-Finance, 7.875%, 6/08/10 .................................... Kazakhstan 800,000 EUR 1,079,674
--------------
TOTAL CORPORATE BONDS (COST $10,701,104) ........................... 10,828,469
--------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES 55.7%
Development & Investment Projects Jordan Armed Forces,
senior note, 6.14%, 12/16/19 ..................................... Jordan 1,700,000 1,652,910
Government of Colombia, 10.00%, 1/23/12 ............................ Colombia 750,000 866,175
c Government of the Dominican Republic, Reg S, 9.50%,
9/27/11 .......................................................... Dominican Republic 592,839 626,927
b Government of Ecuador,
FRN, 6.25%, 2/27/15 ............................................. Ecuador 620,508 462,278
c Reg S, 10.00%, 8/15/30 .......................................... Ecuador 800,000 678,000
Government of Ghana, 13.67%, 6/15/12 ............................... Ghana 850,000 GHC 912,855
c Government of Grenada, Reg S, 1.00% to 9/15/08,
2.50% to 9/15/11, 4.50% to 9/15/13, 6.00% to 9/15/15,
8.00% to 9/15/17, 8.50% to 9/15/18, 9.00% thereafter,
9/15/25 ......................................................... Grenada 448,000 246,400
b,e Government of Iraq, FRN, 1.00%, 1/01/28 ............................ Iraq 1,400,000,000 JPY 3,442,110
b,f Government of Ivory Coast, FRN, 1.90%, 3/30/18 ..................... Ivory Coast 19,000,000 FRF 1,362,293
Government of Mexico, 9.00%, 12/20/12 .............................. Mexico 240,000 g MXN 2,306,902
b Government of Moldova, FRN, 9.98%, 10/29/09 ........................ Moldova 914,000 891,150
Government of Peru, 7.35%, 7/21/25 ................................. Peru 1,850,000 1,998,370
c Government of Russia, Reg S, 12.75%, 6/24/28 ....................... Russia 1,100,000 1,921,535

12 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

LONG TERM INVESTMENTS (CONTINUED)
FOREIGN GOVERNMENT AND AGENCY SECURITIES (CONTINUED)
c Government of Serbia, Reg S, 3.75% to 11/01/09,
6.75% thereafter, 11/01/24 ....................................... Serbia 1,700,000 $ 1,568,029
Government of South Africa, 10.00%, 2/28/08 ........................ South Africa 14,000,000 ZAR 1,948,504
b Government of Turkey, FRN, 18.56%, 1/12/11 ......................... Turkey 425,000 TRY 332,862
c Government of Venezuela, Reg S, 6.00%, 12/09/20 .................... Venezuela 300,000 243,000
b,h HSBC Bank PLC, FRN,
8.345%, 11/15/11 ................................................ Vietnam 287,356 301,080
7.571%, 2/07/12 ................................................. Vietnam 329,326 335,756
h ING Bank NV, 11.89%, 12/30/09 ...................................... Ukraine 7,000,000 UAH 1,544,828
f NK Debt Corp., zero cpn., 3/12/10 .................................. North Korea 3,000,000 DEM 592,868
i Nota Do Tesouro Nacional, Index Linked, 6.00%, 5/15/15 ............. Brazil 2,400 j BRL 2,005,749
d Peru Enhanced Pass-Through Finance Ltd., senior secured bond,
A-1, 144A, zero cpn., 5/31/18 .................................... Peru 560,000 368,200
Province Del Neuquen,
c Reg S, 8.656%, 10/18/14 ......................................... Argentina 400,000 395,000
d senior note, 144A, 8.656%, 10/18/14 ............................. Argentina 600,000 592,500
c Republic of El Salvador, Reg S, 7.65%, 6/15/35 ..................... El Salvador 1,700,000 1,895,500
Republic of Fiji, 6.875%, 9/13/11 .................................. Fiji 400,000 376,198
h Sphynx Capital Markets, 10.25%, 1/30/10 ............................ Ivory Coast 508,200 EUR 693,581
b,h Standard Chartered Bank, FRN, 11.341%, 3/02/12 ..................... Zambia 1,000,000 1,090,000
--------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $30,261,298) ............................................... 31,651,560
--------------
TOTAL LONG TERM INVESTMENTS (COST $43,944,652) ..................... 45,609,029
--------------
SHORT TERM INVESTMENTS 22.0%
FOREIGN GOVERNMENT AND AGENCY SECURITIES 8.8%
h Citigroup Funding Inc., zero cpn.,
9/03/07 ......................................................... Malawi 500,000 528,957
3/08/08 ......................................................... Malawi 266,000 270,323
k Egypt Treasury Bill, 9/18/07 ....................................... Egypt 4,500,000 EGP 789,327
k Mauritius Treasury Bill,
8/24/07 ......................................................... Mauritius 1,800,000 MUR 57,839
8/31/07 ......................................................... Mauritius 7,000,000 MUR 224,257
9/07/07 ......................................................... Mauritius 5,800,000 MUR 185,440
10/12/07 ........................................................ Mauritius 10,000,000 MUR 317,044
k South Africa Treasury Bill,
11/07/07 ........................................................ South Africa 4,000,000 ZAR 541,412
11/21/07 ........................................................ South Africa 5,100,000 ZAR 687,543
k Zambia Treasury Bill,
8/20/07 ......................................................... Zambia 3,000,000,000 ZMK 760,539
10/22/07 ........................................................ Zambia 1,455,000,000 ZMK 361,514
11/26/07 ........................................................ Zambia 750,000,000 ZMK 184,007
2/18/08 ......................................................... Zambia 500,000,000 ZMK 119,313
--------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $4,947,431) ................................................ 5,027,515
--------------
TOTAL INVESTMENTS BEFORE MONEY MARKET FUND AND REPURCHASE
AGREEMENT (COST $48,892,083) ..................................... 50,636,544
--------------

Annual Report | 13

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

SHORT TERM INVESTMENTS (CONTINUED)
MONEY MARKET FUND (COST $502,113) 0.9%
l Franklin Institutional Fiduciary Trust Money Market Portfolio,
5.00% ............................................................ United States 502,113 $ 502,113
--------------

------------------
PRINCIPAL AMOUNT a
------------------

REPURCHASE AGREEMENT (COST $6,997,502) 12.3%
m Joint Repurchase Agreement, 5.189%, 8/01/07 ........................ United States $ 6,997,502 6,997,502
(Maturity Value $6,998,511)
ABN AMRO Bank, NV, New York Branch
(Maturity Value $547,564)
Banc of America Securities LLC (Maturity Value $547,564)
Barclays Capital Inc. (Maturity Value $547,564)
Bear, Stearns & Co. Inc. (Maturity Value $547,564)
BNP Paribas Securities Corp. (Maturity Value $547,564)
Deutsche Bank Securities Inc. (Maturity Value $547,564)
Dresdner Kleinwort Wasserstein Securities LLC
(Maturity Value $547,564)
Goldman, Sachs & Co. (Maturity Value $547,564)
Greenwich Capital Markets Inc. (Maturity Value $547,564)
Lehman Brothers Inc. (Maturity Value $427,743)
Merrill Lynch Government Securities Inc.
(Maturity Value $547,564)
Morgan Stanley & Co. Inc. (Maturity Value $547,564)
UBS Securities LLC (Maturity Value $547,564)
Collateralized by U.S. Government Agency Securities,
3.00% - 6.625%, 8/23/07 - 6/28/12; k U.S. Government
Agency Discount Notes, 10/26/07; k U.S. Treasury Bill,
8/09/07 and U.S. Treasury Notes, 3.375% - 6.50%,
11/15/08 - 6/30/12
--------------
TOTAL INVESTMENTS (COST $56,391,698) 102.3% ........................ 58,136,159
UNREALIZED LOSS ON FORWARD EXCHANGE CONTRACTS (0.1)% ............... (34,757)
OTHER ASSETS, LESS LIABILITIES (2.2)% .............................. (1,279,483)
--------------
NET ASSETS 100.0% .................................................. $ 56,821,919
==============

CURRENCY ABBREVIATIONS

BRL - Brazilian Real
DEM - German Mark
EGP - Egyptian Pounds
EUR - Euro
FRF - French Franc
GHC - Ghana Cedi
JPY - Japanese Yen
MUR - Mauritius Rupee
MXN - Mexican Peso
TRY - Turkish Lira
UAH - Ukraine Hryvna
ZAR - South African Rand
ZMK - Zambia Kwacha

14 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- --------------------------------------------------------------------------------
FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND
- --------------------------------------------------------------------------------

SELECTED PORTFOLIO ABBREVIATIONS

FRN - Floating Rate Note

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

b The coupon rate shown represents the rate at period end.

d Security was purchased pursuant to Rule 144A under the Securities Act of 1933
and may be sold in transactions exempt from registration only to qualified
institutional buyers or in a public offering registered under the Securities Act
of 1933. These securities have been deemed liquid under guidelines approved by
the Trust's Board of Trustees. At July 31, 2007, the aggregate value of these
securities was $4,435,821, representing 7.8% of net assets.

e See Note 1(d) regarding securities purchased on when-issued or delayed
delivery basis.

f See Note 10 regarding defaulted securities.

g Principal amount is stated in 100 Peso Units.

h See Note 1(f) regarding credit linked notes.

i Principal amount of security is adjusted for inflation. See Note 1(h).

j Principal amount is stated in 1,000 Real Units.

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

l See Note 7 regarding investments in the Franklin Institutional Fiduciary Trust
Money Market Portfolio. The rate shown is the annualized seven-day yield at
period end.

m See Note 1(c) regarding repurchase agreements.

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

Franklin Global Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
July 31, 2007

----------------
FRANKLIN
TEMPLETON
EMERGING MARKET
DEBT
OPPORTUNITIES
FUND
----------------

Assets:
Investments in securities:
Cost - Unaffiliated issuers .............................................. $ 48,892,083
Cost - Sweep Money Fund (Note 7) ......................................... 502,113
Cost - Repurchase agreements ............................................. 6,997,502
----------------
Total cost of investments ................................................ $ 56,391,698
================
Value - Unaffiliated issuers ............................................. $ 50,636,544
Value - Sweep Money Fund (Note 7) ........................................ 502,113
Value - Repurchase agreements ............................................ 6,997,502
----------------
Total value of investments ............................................... 58,136,159
Cash ........................................................................ 1,055,143
Foreign currency, at value (cost $281,149) .................................. 282,796
Receivables:
Investment securities sold ............................................... 140,008
Dividends and interest ................................................... 614,205
----------------
Total assets .......................................................... 60,228,311
----------------
Liabilities:
Payables:
Investment securities purchased .......................................... 3,309,574
Affiliates ............................................................... 40,290
Unrealized loss on forward exchange contracts (Note 8) ...................... 34,757
Accrued expenses and other liabilities ...................................... 21,771
----------------
Total liabilities ..................................................... 3,406,392
----------------
Net assets, at value ............................................... $ 56,821,919
================
Net assets consist of:
Paid-in capital ............................................................. $ 52,923,822
Undistributed net investment income ......................................... 1,909,707
Net unrealized appreciation (depreciation) .................................. 1,620,438
Accumulated net realized gain (loss) ........................................ 367,952
----------------
Net assets, at value ............................................... $ 56,821,919
================
Shares outstanding ............................................................. 5,051,567
================
Net asset value and maximum offering price per share a ......................... $ 11.25
================

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

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the year ended July 31, 2007

----------------
FRANKLIN
TEMPLETON
EMERGING MARKET
DEBT
OPPORTUNITIES
FUND
----------------

Investment income:
Dividends ................................................................... $ 474,350
Interest .................................................................... 2,935,020
----------------
Total investment income ............................................... 3,409,370
----------------
Expenses:
Management fees (Note 3a) ................................................... 331,711
Administrative fees (Note 3b) ............................................... 83,354
Transfer agent fees (Note 3c) ............................................... 585
Custodian fees (Note 4) ..................................................... 28,893
Reports to shareholders ..................................................... 21,446
Registration and filing fees ................................................ 33,129
Professional fees ........................................................... 32,412
Directors' fees and expenses ................................................ 2,458
Amortization of offering costs .............................................. 29,524
Other ....................................................................... 3,147
----------------
Total expenses ........................................................ 566,659
Expense reductions (Note 4) ........................................... (3,841)
Expenses waived/paid by affiliates (Note 3d) .......................... (102,611)
----------------
Net expenses ....................................................... 460,207
----------------
Net investment income ........................................... 2,949,163
----------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments .............................................................. 457,967
Foreign currency transactions ............................................ 51,431
----------------
Net realized gain (loss) ........................................ 509,398
----------------
Net change in unrealized appreciation (depreciation) on:
Investments .............................................................. 1,641,512
Translation of assets and liabilities denominated in foreign currencies .. (86,707)
----------------
Net change in unrealized appreciation (depreciation) ............ 1,554,805
----------------
Net realized and unrealized gain (loss) ........................................ 2,064,203
================
Net increase (decrease) in net assets resulting from operations ................ $ 5,013,366
================

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

--------------------------
FRANKLIN TEMPLETON
EMERGING MARKET
DEBT OPPORTUNITIES FUND
--------------------------
YEAR ENDED JULY 31,
2007 2006 a
--------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ...................................................................... $ 2,949,163 $ 47,271
Net realized gain (loss) from investments and foreign currency transactions ................ 509,398 14,191
Net change in unrealized appreciation (depreciation) on investments and translation of
assets and liabilities denominated in foreign currencies ................................ 1,554,805 65,633
--------------------------
Net increase (decrease) in net assets resulting from operations ......................... 5,013,366 127,095
--------------------------
Distributions to shareholders from:
Net investment income ...................................................................... (1,247,540) --
Net realized gains ......................................................................... (26,883) --
--------------------------
Total distributions to shareholders ........................................................... (1,274,423) --
--------------------------
Capital share transactions (Note 2) ........................................................... 43,705,881 9,250,000
--------------------------
Net increase (decrease) in net assets ................................................... 47,444,824 9,377,095
Net assets:
Beginning of year ............................................................................. 9,377,095 --
--------------------------
End of year ................................................................................... $56,821,919 $ 9,377,095
==========================
Undistributed net investment income included in net assets:
End of year ................................................................................... $ 1,909,707 $ 57,088
==========================

a For the period May 24, 2006 (commencement of operations) to July 31, 2006.

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

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Global Trust (the Trust) is registered under the Investment Company Act
of 1940, as amended, (the 1940 Act) as an open-end investment company,
consisting of eight separate funds. The Franklin Templeton Emerging Market Debt
Opportunities Fund (the Fund) included in this report is non-diversified. The
financial statements of the remaining funds in the Trust are presented
separately. The Fund offers one class of shares: Advisor Class.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

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

Annual Report | 19

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

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

B. FOREIGN CURRENCY TRANSLATION

C. JOINT REPURCHASE AGREEMENT

The Fund may enter into a joint repurchase agreement whereby its uninvested cash
balance is deposited into a joint cash account with other funds managed by the
investment manager or an affiliate of the investment manager and is used to
invest in one or more repurchase agreements. The value and face amount of the
joint repurchase agreement are allocated to the funds based on their pro-rata
interest. A repurchase agreement is accounted for as a loan by the fund to the

20 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. JOINT REPURCHASE AGREEMENT (CONTINUED)

seller, collateralized by securities which are delivered to the fund's
custodian. The market value, including accrued interest, of the initial
collateralization is required to be at least 102% of the dollar amount invested
by the funds, with the value of the underlying securities marked to market daily
to maintain coverage of at least 100%. The joint repurchase agreement held by
the Fund at year end had been entered into on July 31, 2007. The joint
repurchase agreement is valued at cost.

D. 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.

E. FOREIGN CURRENCY CONTRACTS

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

Annual Report | 21

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. CREDIT LINKED NOTES

The Fund may purchase credit linked notes. Credit linked notes are intended to
replicate the economic effects that would apply had the Fund directly purchased
the underlying reference asset. The risks of credit linked notes include the
potential default of the underlying reference asset, the movement in the value
of the currency of the underlying reference assets relative to the credit linked
note, the potential inability of the Fund to dispose of the credit linked note
in the normal course of business, and the possible inability of the
counterparties to fulfill their obligations under the contracts.

G. INCOME TAXES

Foreign securities held by the Fund may be subject to foreign taxation on
dividend and interest income received. Foreign taxes, if any, are recorded based
on the tax regulations and rates that exist in the foreign markets in which the
Fund invests.

The Fund may be subject to a tax imposed on net realized gains on securities of
certain foreign countries. The Fund records an estimated deferred tax liability
for net unrealized gains on these securities in an amount that would be payable
if the securities were disposed of on the valuation date.

H. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

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

22 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

H. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
(CONTINUED)

I. OFFERING COSTS

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

J. ACCOUNTING ESTIMATES

K. REDEMPTION FEES

A short term trading redemption fee will be imposed, with some exceptions, on
any fund shares that are redeemed or exchanged within seven calendar days
following their purchase date. The redemption fee is 2% of the amount redeemed.
Such fees are retained by the fund and accounted for as an addition to paid-in
capital. There were no redemption fees for the year.

L. GUARANTEES AND INDEMNIFICATIONS

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

Annual Report | 23

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

2. SHARES OF BENEFICIAL INTEREST

At July 31, 2007, there were an unlimited number of shares authorized (no par
value). Transactions in the Fund's shares were as follows:

-------------------------------------------------
YEAR ENDED JULY 31,
2007 2006 a
-------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------

Shares sold ......................................... 4,039,595 $ 42,746,596 920,350 $ 9,250,000
Shares issued in reinvestment of distributions ...... 91,622 959,285 -- --
-------------------------------------------------
Net increase (decrease) ............................. 4,131,217 $ 43,705,881 920,350 $ 9,250,000
=================================================

a For the period May 24, 2006 (commencement of operations) to July 31, 2006.

3. TRANSACTIONS WITH AFFILIATES

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

Franklin Templeton Investment Management Limited (Investment Management) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

A. MANAGEMENT FEES

The Fund pays an investment management fee to Investment Management based on the
average daily net assets of the Fund as follows:

- --------------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
- --------------------------------------------------------------------------------
0.800% Up to and including $500 million
0.700% Over $500 million, up to and including $1.0 billion
0.650% In excess of $1.0 billion

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services of 0.20% per year of the
average daily net assets of the Fund.

C. TRANSFER AGENT FEES

For the year ended July 31, 2007, the Fund paid transfer agent fees of $585, of
which $430 was retained by Investor Services.

24 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

D. WAIVER AND EXPENSE REIMBURSEMENTS

FT Services and Investment Management have agreed in advance to waive a portion
of their respective fees and to assume payment of other expenses through
November 30, 2008. Total expenses waived/paid are not subject to reimbursement
by the Fund subsequent to the Fund's fiscal year end. After November 30, 2008,
FT Services and Investment Management may discontinue this waiver at any time
upon notice to the Fund's Board of Trustees.

E. OTHER AFFILIATED TRANSACTIONS

At July 31, 2007, Franklin Advisers, Inc. owned 9.90% of the Fund's outstanding
shares.

4. EXPENSE OFFSET ARRANGEMENT

5. INCOME TAXES

The tax character of distributions paid during the year ended July 31, 2007,
were as follows:

Distributions paid from ordinary income ......................... $ 1,274,423

At July 31, 2007, the cost of investments, net unrealized appreciation
(depreciation) and undistributed ordinary income for income tax purposes were as
follows:

Cost of investments ............................................. $56,523,658
============

Unrealized appreciation ......................................... $ 1,957,416
Unrealized depreciation ......................................... (344,915)
------------
Net unrealized appreciation (depreciation) ...................... $ 1,612,501
============

Distributable earnings - undistributed ordinary income .......... $ 2,409,350
============

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions, bond discounts and
premiums, offering costs and inflation related adjustments on foreign
securities.

Annual Report | 25

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

5. INCOME TAXES (CONTINUED)

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales, foreign currency
transactions, bond discounts and premiums and inflation related adjustments on
foreign securities.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
year ended July 31, 2007, aggregated $59,750,251 and $21,445,004, 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
Franklin Advisers, Inc. (an affiliate of the investment manager). Management
fees paid by the Fund are reduced on assets invested in the Sweep Money Fund, in
an amount not to exceed the management and administrative fees paid by the Sweep
Money Fund.

8. FORWARD EXCHANGE CONTRACTS

At July 31, 2007, the Fund had the following forward exchange contracts
outstanding:

- ------------------------------------------------------------------------------------------------------
SETTLEMENT UNREALIZED
CONTRACTS TO SELL CONTRACT AMOUNT a DATE LOSS
- ------------------------------------------------------------------------------------------------------

2,600,000 Euro ............................... 3,532,230 10/23/07 $(34,311)
2,900,000,000 Zambia Kwacha ...................... 737,913 8/20/07 $ (446)
---------
Net unrealized loss on forward exchange contracts ..... $(34,757)
=========

a In U.S. Dollar unless otherwise indicated.

9. SHAREHOLDER CONCENTRATIONS

The Fund has a concentration of shareholders holding a significant percentage of
shares outstanding. Investment activities of these shareholders could have a
material impact on the Fund. At July 31, 2007, there were two unaffiliated
shareholders, one holding 49.26% and the other holding 14.25% of the Fund's
outstanding shares.

26 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

10. CREDIT RISK AND DEFAULTED SECURITIES

The Fund has 78.05% 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.

The Fund held defaulted securities and/or other securities for which the income
has been deemed uncollectible. At July 31, 2007, the aggregate value of these
securities was $1,955,161, representing 3.44% of the Fund's net assets. The Fund
discontinues accruing income on securities for which income has been deemed
uncollectible and provides an estimate for losses on interest receivable. The
securities have been identified on the accompanying Statement of Investments.

11. CONCENTRATION OF RISK

12. REGULATORY AND LITIGATION MATTERS

Annual Report | 27

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

12. REGULATORY AND LITIGATION MATTERS (CONTINUED)

13. NEW ACCOUNTING PRONOUNCEMENTS

28 | Annual Report

Franklin Global Trust

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FRANKLIN GLOBAL TRUST

In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Franklin Templeton Emerging Market
Debt Opportunities Fund (a portfolio of Franklin Global Trust, hereafter
referred to as the "Fund") at July 31, 2007, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for 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 Fund's management. Our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at July 31, 2007 by correspondence with the custodian
and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 17, 2007

Annual Report | 29

Franklin Global Trust

TAX DESIGNATION (UNAUDITED)

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

Under Section 871(k)(1)(C) of the Internal Revenue Code (Code), the Fund
designates the maximum amount allowable but no less than $186,877 as interest
related dividends for purposes of the tax imposed under Section 871(a)(1)(A) of
the Code for the fiscal year ended July 31, 2007.

Under Section 871(k)(2)(C) of the Code, the Fund designates the maximum amount
allowable but no less than $377,884 as a short term capital gain dividend for
purposes of the tax imposed under Section 871(a)(1)(A) of the Code for the
fiscal year ended July 31, 2007.

At July 31, 2007, more than 50% of the 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. As shown in the table
below, the Fund designates to shareholders the foreign source income and foreign
taxes paid, pursuant to Section 853 of the Code. This designation will allow
shareholders of record on December 14, 2006, 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.

30 | Annual Report

Franklin Global Trust

Franklin Templeton Emerging Market Debt Opportunities Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED)

A Special Meeting of Shareholders of the Trust was held at the Trust's offices,
One Franklin Parkway, San Mateo, California on March 21, 2007. The purpose of
the meeting was to elect Trustees of the Trust and to vote on the following
Proposals and Sub-Proposals: to approve an Amended and Restated Agreement and
Declaration of Trust; and to approve amendments to certain of the Franklin
Templeton Emerging Market Debt Opportunities Fund's (the "Fund") fundamental
investment restrictions (including three (3) Sub-Proposals). At the meeting, the
following persons were elected by the shareholders to serve as Independent
Trustees of the Trust: Harris J. Ashton, Robert F. Carlson, Sam Ginn, Edith E.
Holiday, Frank W. T. LaHaye, Frank A. Olson, Larry D. Thompson, and John B.
Wilson. Charles B. Johnson and Gregory E. Johnson were elected by the
shareholders to serve as Interested Trustees. Shareholders also approved the
Amended and Restated Agreement and Declaration of Trust and amendments to
certain of the Fund's fundamental investment restrictions (including three (3)
Sub-Proposals). No other business was transacted at the meeting.

Proposal 1. The Election of Trustees:

Harris J. Ashton ............. 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Robert F. Carlson ............ 31,255,986.306 83.526% 99.951% 15,358.451 0.041% 0.049%
Sam Ginn ..................... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Edith E. Holiday ............. 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Frank W. T. LaHaye ........... 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Frank A. Olson ............... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Larry D. Thompson ............ 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
John B. Wilson ............... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Charles B. Johnson ........... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Gregory E. Johnson ........... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%

Proposal 2. To approve an Amended and Restated Agreement and Declaration of
Trust:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For .......................... 29,754,630.388 79.514% 95.151%
Against ...................... 5,747.015 0.015% 0.018%
Abstain ...................... 7,315.354 0.020% 0.023%
Broker non-votes ............. 1,503,652.000 4.018% 4.808%
- ------------------------------------------------------------------------
TOTAL ........................ 31,271,344.757 83.567% 100.000%

Annual Report | 31

Franklin Global Trust

Franklin Templeton Emerging Market Debt Opportunities Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Fund's fundamental
investment restrictions (includes three (3) Sub-Proposals):

(a) To amend the Fund's fundamental investment restriction regarding lending:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For .......................... 2,993,381.126 75.063% 100.000%
Against ...................... 0.000 0.000% 0.000%
Abstain ...................... 0.000 0.000% 0.000%
- ------------------------------------------------------------------------
TOTAL ........................ 2,993,381.126 75.063% 100.000%

(b) To amend the Fund's fundamental investment restriction regarding investments
in real estate:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For .......................... 2,993,381.126 75.063% 100.000%
Against ...................... 0.000 0.000% 0.000%
Abstain ...................... 0.000 0.000% 0.000%
- ------------------------------------------------------------------------
TOTAL ........................ 2,993,381.126 75.063% 100.000%

32 | Annual Report

Franklin Global Trust

BOARD MEMBERS AND OFFICERS

INDEPENDENT BOARD MEMBERS

HARRIS J. ASHTON (1932) Trustee Since 2000 140 Director, Bar-S Foods (meat packing
One Franklin Parkway company).
San Mateo, CA 94403-1906

Annual Report | 33

FRANK W.T. LAHAYE (1929) Trustee Since 2000 121 Director, Center for Creative Land
One Franklin Parkway Recycling (brownfield redevelopment).
San Mateo, CA 94403-1906

INTERESTED BOARD MEMBERS AND OFFICERS

**CHARLES B. JOHNSON (1933) Trustee and Since 2000 140 None
One Franklin Parkway Chairman of
San Mateo, CA 94403-1906 the Board

34 | Annual Report

**GREGORY E. JOHNSON (1961) Trustee Since March 2007 91 None
One Franklin Parkway
San Mateo, CA 94403-1906

Annual Report | 35

DAVID P. GOSS (1947) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

36 | Annual Report

CRAIG S. TYLE (1960) Vice President Since 2005 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are brothers and the
father and uncle, respectively, of Gregory E. Johnson.

Note 2: Officer information is current as of the date of this report. It is
possible that after this date, information about officers may change.

Note 3: Prior to July 31, 2007, Harmon E. Burns, S. Joseph Fortunato, Rupert H.
Johnson, Jr. and Gordon S. Macklin ceased to be trustees of the Trust.

Annual Report | 37

Franklin Global Trust

SHAREHOLDER INFORMATION

FRANKLIN TEMPLETON EMERGING MARKET DEBT OPPORTUNITIES FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

At a meeting held February 27, 2007, the Board of Trustees (Board), including a
majority of non-interested or independent Trustees, approved renewal of the
investment management agreements for each of the separate funds within Franklin
Global Trust other than the recently formed Franklin Templeton Emerging Market
Debt Opportunities Fund whose investment management agreement was not up for
renewal.

PROXY VOTING POLICIES AND PROCEDURES

QUARTERLY STATEMENT OF INVESTMENTS

38 | Annual Report

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[LOGO](R)
FRANKLIN TEMPLETON
INSTITUTIONAL

FRANKLIN TEMPLETON INSTITUTIONAL

600 Fifth Avenue
New York, NY 10020

ANNUAL REPORT

FRANKLIN TEMPLETON EMERGING MARKET
DEBT OPPORTUNITIES FUND

INVESTMENT MANAGER

Franklin Templeton Investment Management Limited

DISTRIBUTOR

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

FRANKLIN TEMPLETON INSTITUTIONAL SERVICES

1-800/321-8563
ftinstitutional.com

699 A2007 09/07

- --------------------------------------------------------------------------------
ANNUAL REPORT 07 31 2007
- --------------------------------------------------------------------------------

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

FRANKLIN GLOBAL TRUST

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

Franklin Templeton High Income Fund

[LOGO](R)
FRANKLIN TEMPLETON
INSTITUTIONAL

Contents

ANNUAL REPORT

Franklin Templeton High Income Fund ...................................... 1

Performance Summary ...................................................... 5

Your Fund's Expenses ..................................................... 7

Financial Highlights and Statement of Investments ........................ 9

Financial Statements ..................................................... 14

Notes to Financial Statements ............................................ 17

Report of Independent Registered Public Accounting Firm .................. 24

Tax Designation .......................................................... 25

Meeting of Shareholders .................................................. 26

Board Members and Officers ............................................... 28

Shareholder Information .................................................. 33

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

Annual Report

Franklin Templeton High Income Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin Templeton High Income Fund seeks
total return by investing primarily in debt securities offering high yield and
expected total return. The Fund may invest up to 100% of its assets in high
yield, lower quality debt securities.

- --------------------------------------------------------------------------------
PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE CALL A FRANKLIN TEMPLETON INSTITUTIONAL SERVICES
REPRESENTATIVE AT 1-800/321-8563 FOR MOST RECENT MONTH-END PERFORMANCE.
- --------------------------------------------------------------------------------

This annual report for Franklin Templeton High Income Fund covers the fiscal
year ended July 31, 2007.

PERFORMANCE OVERVIEW

Franklin Templeton High Income Fund posted a +6.26% cumulative total return for
the fiscal year ended July 31, 2007. The Fund underperformed its benchmark, the
Credit Suisse (CS) High Yield Index - Developed Countries Only, which returned
+7.59% during the same period. 1 You can find the Fund's long-term performance
data in the Performance Summary beginning on page 5.

1. Source: Credit Suisse. The CS High Yield Index - Developed Countries Only is
designed to mirror the investible universe of the U.S. dollar denominated high
yield debt market. The index is unmanaged and includes reinvested distributions.
One cannot invest directly in an index, nor is an index representative of the
Fund's portfolio.

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 10.

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

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

Annual Report | 1

ECONOMIC AND MARKET OVERVIEW

The high yield corporate bond market performed well during the first 10 months
of the period; however, the market fell late in the period. Until June, high
yield spreads over U.S. Treasury securities generally continued to tighten,
falling below three percentage points and reaching historically tight levels in
early June. However, a combination of increasing risk aversion in broader
financial markets, triggered initially by a faltering U.S. housing market and
associated subprime mortgage market downturn, and a significant upcoming supply
of noninvestment-grade loans and high yield bonds pushed up yield spreads in the
latter half of June and into July. By period-end, the yield spread, as measured
by the CS High Yield Index - Developed Countries Only, was 4.4 percentage
points, up from 3.7 percentage points on July 31, 2006, and its lowest level of
2.7 percentage points earlier in the period. 3

2. Source: Bureau of Labor Statistics.

3. Source: Credit Suisse. See footnote 1 for a description of the CS High Yield
Index - Developed Countries Only.

2 | Annual Report

Although the high yield bond market moved lower by period-end, fundamental
credit trends remained supportive. For example, default rates were near 25-year
lows, second quarter corporate earnings displayed a positive, albeit slower,
growth trend, and the proportion of high yield bonds considered in financial
distress remained near historical lows. Despite the pullback at the end of the
period, the high yield asset class delivered one of the fixed income market's
better returns, given the relatively higher income stream and modest default
levels.

INVESTMENT STRATEGY

We are research-driven, fundamental investors who rely on a team of analysts to
provide in-depth industry expertise, using both qualitative and quantitative
analysis to evaluate companies. As "bottom-up" investors, we focus primarily on
individual securities. In selecting securities for the Fund's investment
portfolio, we do not rely principally on the ratings assigned by rating
agencies; we perform our own independent investment analysis to evaluate the
creditworthiness of the issuer.

In addition to our fundamental analysis, yield and expected return are also
considered in selecting securities. We focus primarily on individual securities
but also consider industry sectors. Because issuers of high yield bonds tend to
be heavily represented in particular sectors, the Fund may, from time to time,
have significant investments in one or more sectors.

MANAGER'S DISCUSSION

In terms of performance versus its benchmark, the Fund's modestly more
defensive, relatively higher quality positioning constrained performance. Even
with widening yield spreads toward period-end, the asset class's lowest quality
sectors, including defaulted bonds, generated stronger total return performance
during the Fund's fiscal year than higher quality bonds. With valuations at
levels not reached since 2004 but with spreads still below longer-term averages,
we sought to add exposure to issues we believed had been unduly pressured by the
recent market sell-off, while maintaining a neutral to somewhat defensive
overall positioning. Notably, the Fund did not experience any defaults among its
holdings during the reporting period.

Regarding industry positioning, our relative weightings had a slightly positive
impact on performance relative to the benchmark. For example, the Fund's
underweighted exposure to the finance sector, which was negatively affected by
the housing and subprime mortgage market's downturn, helped relative
performance. In addition, the Fund's overweighted position in the chemicals

PORTFOLIO BREAKDOWN
Based on Total Net Assets as of 7/31/07

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

Consumer Services 15.0%
Process Industries 8.5%
Health Services 8.0%
Communications 6.9%
Consumer Durables 6.9%
Energy Minerals 6.6%
Industrial Services 6.5%
Utilities 6.3%
Commercial Services 6.1%
Electronic Technology 5.8%
Producer Manufacturing 5.5%
Finance 3.1%
Consumer Non-Durables 2.9%
Non-Energy Minerals 2.6%
Other 6.0%
Short-Term Investments & Other Net Assets 3.3%

Annual Report | 3

industry benefited relative results, as industry consolidation bolstered bonds
of such issuers as Lyondell Chemical and Huntsman International. 4

Detractors from performance relative to the benchmark included the Fund's lack
of exposure to the airline industry, which experienced one of the fixed income
market's strongest returns over the past year. The industry benefited as many
airlines rationalized supply and reduced costs through restructuring.

We thank you for your continued participation in Franklin Templeton High Income
Fund, and we look forward to serving your future investment needs.

[PHOTO OMITTED] /s/ Christopher J. Molumphy

Christopher J. Molumphy, CFA
Executive Vice President
Portfolio Manager
Franklin Advisers, Inc.

[PHOTO OMITTED] /s/ Eric G. Takaha

Eric G. Takaha, CFA
Senior Vice President
Portfolio Manager
Franklin Advisers, Inc.

4. These chemicals industry holdings are in the process industries sector in the
SOI.

4 | Annual Report

Performance Summary as of 7/31/07

PRICE AND DISTRIBUTION INFORMATION

- ----------------------------------------------------------------------------------------------
SYMBOL: N/A CHANGE 7/31/07 7/31/06
- ----------------------------------------------------------------------------------------------

Net Asset Value (NAV) -$ 0.20 $ 9.75 $ 9.95
- ----------------------------------------------------------------------------------------------
DISTRIBUTIONS (8/1/06-7/31/07)
- ----------------------------------------------------------------------------------------------
Dividend Income $0.7690
- ----------------------------------------------------------------------------------------------
Short-Term Capital Gain $0.0148
- ----------------------------------------------------------------------------------------------
Long-Term Capital Gain $0.0474
- ----------------------------------------------------------------------------------------------
TOTAL $0.8312
- ----------------------------------------------------------------------------------------------

PERFORMANCE 1

THE FUND MAY CHARGE A 2% FEE ON SHARES REDEEMED SEVEN DAYS OF WITHIN PURCHASE.

- ----------------------------------------------------------------------------------------------
1-YEAR 3-YEAR INCEPTION (8/25/03)
- ----------------------------------------------------------------------------------------------

Cumulative Total Return 2 +6.26% +23.14% +39.80%
- ----------------------------------------------------------------------------------------------
Average Annual Total Return 3 +6.26% +7.19% +8.89%
- ----------------------------------------------------------------------------------------------
Avg. Ann. Total Return (6/30/07) 4 +10.82% +9.01% +10.06%
- ----------------------------------------------------------------------------------------------
Total Annual Operating Expenses 5
- ----------------------------------------------------------------------------------------------
Without Waiver 1.33%
- ----------------------------------------------------------------------------------------------
With Waiver 0.50%
- ----------------------------------------------------------------------------------------------

THE MANAGER AND ADMINISTRATOR HAVE CONTRACTUALLY AGREED TO LIMIT FUND EXPENSES
SO THAT TOTAL ANNUAL FUND OPERATING EXPENSES DO NOT EXCEED 0.50% (OTHER THAN
CERTAIN NON-ROUTINE EXPENSES) UNTIL 11/30/08.

Annual Report | 5

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT 1

The graph below illustrates the hypothetical investment of $10,000 in Franklin
Templeton High Income Fund from inception on 8/25/03 through 7/31/07, compared
with the CS High Yield Index - Developed Countries Only. Total return represents
the change in value of an investment over the periods shown. It includes Fund
expenses, account fees and reinvested distributions. The index is unmanaged and
includes reinvestment of any income or distributions. It differs from the Fund
in composition and does not pay management fees or expenses. One cannot invest
directly in an index.

AVERAGE ANNUAL TOTAL RETURN

- -----------------------------------
7/31/07
- -----------------------------------
1-Year +6.26%
- -----------------------------------
3-Year +7.19%
- -----------------------------------
Since Inception (8/25/03) +8.89%
- -----------------------------------

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

CS High Yield Index -
Calendar Month Franklin Templeton High Income Fund Developed Countries Only 6

Aug-03 $ 10,080 $ 10,075
Sep-03 $ 10,344 $ 10,354
Oct-03 $ 10,559 $ 10,568
Nov-03 $ 10,733 $ 10,710
Dec-03 $ 10,986 $ 10,960
Jan-04 $ 11,217 $ 11,173
Feb-04 $ 11,198 $ 11,172
Mar-04 $ 11,262 $ 11,238
Apr-04 $ 11,200 $ 11,227
May-04 $ 10,999 $ 11,054
Jun-04 $ 11,162 $ 11,223
Jul-04 $ 11,353 $ 11,362
Aug-04 $ 11,599 $ 11,544
Sep-04 $ 11,782 $ 11,718
Oct-04 $ 12,071 $ 11,920
Nov-04 $ 12,157 $ 12,068
Dec-04 $ 12,319 $ 12,249
Jan-05 $ 12,323 $ 12,241
Feb-05 $ 12,560 $ 12,403
Mar-05 $ 12,169 $ 12,105
Apr-05 $ 12,033 $ 11,979
May-05 $ 12,298 $ 12,124
Jun-05 $ 12,492 $ 12,327
Jul-05 $ 12,698 $ 12,496
Aug-05 $ 12,698 $ 12,560
Sep-05 $ 12,563 $ 12,430
Oct-05 $ 12,494 $ 12,312
Nov-05 $ 12,670 $ 12,394
Dec-05 $ 12,807 $ 12,497
Jan-06 $ 12,960 $ 12,656
Feb-06 $ 13,088 $ 12,781
Mar-06 $ 13,128 $ 12,876
Apr-06 $ 13,175 $ 12,962
May-06 $ 13,112 $ 12,997
Jun-06 $ 13,049 $ 12,927
Jul-06 $ 13,157 $ 13,036
Aug-06 $ 13,346 $ 13,216
Sep-06 $ 13,537 $ 13,381
Oct-06 $ 13,741 $ 13,564
Nov-06 $ 13,961 $ 13,813
Dec-06 $ 14,088 $ 13,976
Jan-07 $ 14,201 $ 14,138
Feb-07 $ 14,417 $ 14,357
Mar-07 $ 14,465 $ 14,397
Apr-07 $ 14,683 $ 14,602
May-07 $ 14,784 $ 14,714
Jun-07 $ 14,461 $ 14,487
Jul-07 $ 13,980 $ 14,026
Aug-07 N/A N/A

ENDNOTES

INTEREST RATE MOVEMENTS WILL AFFECT THE FUND'S SHARE PRICE AND YIELD. BOND
PRICES GENERALLY MOVE IN THE OPPOSITE DIRECTION OF INTEREST RATES. THUS, AS
PRICES OF BONDS IN THE FUND ADJUST TO A RISE IN INTEREST RATES, THE FUND'S SHARE
PRICE MAY DECLINE. THE RISKS ASSOCIATED WITH HIGHER-YIELDING, LOWER-RATED
SECURITIES INCLUDE HIGHER RISK OF DEFAULT AND LOSS OF PRINCIPAL. THE FUND'S
INVESTMENTS IN FOREIGN COUNTRIES, INCLUDING EMERGING MARKETS, CAN INVOLVE
SPECIAL RISKS INCLUDING CURRENCY VOLATILITY AND POLITICAL, ECONOMIC AND
REGULATORY UNCERTAINTY. THE FUND'S PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE
MAIN INVESTMENT RISKS.

1. The manager and administrator have contractually agreed to limit Fund
expenses so that total annual Fund operating expenses do not exceed 0.50% (other
than certain non-routine expenses) until 11/30/08. If the manager and
administrator had not taken this action, the Fund's total returns would have
been lower.

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

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

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

5. Figures are as stated in the Fund's prospectus current as of the date of this
report.

6. Source: Credit Suisse. The CS High Yield Index - Developed Countries Only is
designed to mirror the investible universe of the U.S. dollar denominated high
yield debt market.

6 | Annual Report

Your Fund's Expenses

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

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

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

ACTUAL FUND EXPENSES

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

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

1. Divide your account value by $1,000.
IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."
IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Annual Report | 7

Your Fund's Expenses (CONTINUED)

- -------------------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE 2/1/07 VALUE 7/31/07 PERIOD* 2/1/07-7/31/07
- -------------------------------------------------------------------------------------------------------------------

Actual $1,000 $ 984.40 $2.46
- -------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,022.32 $2.51
- -------------------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio, net of expense waivers, of
0.50%, multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.

8 | Annual Report

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FRANKLIN TEMPLETON HIGH INCOME FUND

----------------------------------------------
YEAR ENDED JULY 31,
2007 2006 2005 2004 f
----------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year .............................................. $ 9.95 $ 10.58 $ 10.51 $ 10.00
-----------------------------------------------
Income from investment operations a:
Net investment income b ...................................................... 0.75 0.73 0.75 0.72
Net realized and unrealized gains (losses) ................................... (0.12) (0.37) 0.45 0.61
-----------------------------------------------
Total from investment operations ................................................ 0.63 0.36 1.20 1.33
-----------------------------------------------
Less distributions from:
Net investment income ........................................................ (0.77) (0.75) (0.78) (0.77)
Net realized gains ........................................................... (0.06) (0.24) (0.35) (0.05)
-----------------------------------------------
Total distributions ............................................................. (0.83) (0.99) (1.13) (0.82)
-----------------------------------------------
Net asset value, end of year .................................................... $ 9.75 $ 9.95 $ 10.58 $ 10.51
===============================================

Total return c .................................................................. 6.26% 3.61% 11.86% 13.53%

RATIOS TO AVERAGE NET ASSETS d
Expenses before waiver and payments by affiliates ............................... 1.48% 1.33% 1.31% 1.36%
Expenses net of waiver and payments by affiliates ............................... 0.50% e 0.50% e 0.50% e 0.50%
Net investment income ........................................................... 7.29% 7.13% 7.07% 7.33%

SUPPLEMENTAL DATA
Net assets, end of year (000's) ................................................. $ 6,062 $ 7,069 $ 8,161 $ 7,337
Portfolio turnover rate ......................................................... 48.08% 54.31% 53.77% 82.00%

b Based on average daily shares outstanding.

c Total return is not annualized for periods less than one year.

d Ratios are annualized for periods less than one year.

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

f For the period August 25, 2003 (commencement of operations) to July 31, 2004.

Annual Report |
The accompanying notes are an integral part of these financial statements. | 9

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON HIGH INCOME FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

CORPORATE BONDS 96.7%
COMMERCIAL SERVICES 6.1%
b ARAMARK Corp., senior note, 144A, 8.50%, 2/01/15 ......................... United States $ 75,000 $ 71,062
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 .................... United States 100,000 105,500
Iron Mountain Inc., senior sub. note, 8.75%, 7/15/18 ..................... United States 50,000 49,625
Lamar Media Corp., senior sub. note, 7.25%, 1/01/13 ...................... United States 50,000 48,250
R.H. Donnelley Corp., senior note, 8.875%, 1/15/16 ....................... United States 25,000 24,438
b Rental Service Corp., senior note, 144A, 9.50%, 12/01/14 ................. United States 75,000 73,500
------------
372,375
------------
COMMUNICATIONS 6.9%
Inmarsat Finance II PLC, senior note, zero cpn. to 11/15/08,
10.375% thereafter, 11/15/12 .......................................... United Kingdom 75,000 70,125
Intelsat Intermediate, senior note, zero cpn. to 2/01/10, 9.25%
thereafter,
2/01/15 ............................................................... Bermuda 25,000 19,750
Intelsat Subsidiary Holding Co. Ltd., senior note, 8.25%, 1/15/13 ........ Bermuda 75,000 75,000
b MetroPCS Wireless Inc., senior note, 144A, 9.25%, 11/01/14 ............... United States 50,000 49,250
Millicom International Cellular SA, senior note, 10.00%, 12/01/13 ........ Luxembourg 50,000 53,125
Qwest Communications International Inc., senior note, 7.50%, 2/15/14 ..... United States 100,000 96,500
b Wind Acquisition Finance SA, senior note, 144A, 10.75%, 12/01/15 ......... Italy 50,000 51,750
------------
415,500
------------
CONSUMER DURABLES 6.9%
Ford Motor Credit Co. LLC,
5.625%, 10/01/08 ...................................................... United States 100,000 97,832
senior note, 9.875%, 8/10/11 .......................................... United States 75,000 76,009
General Motors Corp., senior deb., 8.25%, 7/15/23 ........................ United States 50,000 41,000
Jarden Corp., senior sub. note, 7.50%, 5/01/17 ........................... United States 75,000 67,875
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12 ..................... United States 50,000 49,250
KB Home, senior note, 6.25%, 6/15/15 ..................................... United States 100,000 83,500
------------
415,466
------------
CONSUMER NON-DURABLES 2.9%
Reynolds American Inc., senior secured note, 7.625%, 6/01/16 ............. United States 100,000 103,727
Smithfield Foods Inc., senior note, 7.75%, 7/01/17 ....................... United States 75,000 72,750
------------
176,477
------------
CONSUMER SERVICES 15.0%
CanWest Media Inc., senior sub. note, 8.00%, 9/15/12 ..................... Canada 50,000 48,250
CCH I LLC, senior secured note, 11.00%, 10/01/15 ......................... United States 25,000 25,125
CCH II LLC, senior note, 10.25%, 9/15/10 ................................. United States 100,000 102,250
CSC Holdings Inc., senior deb., 7.625%, 7/15/18 .......................... United States 50,000 44,750
EchoStar DBS Corp., senior note, 6.375%, 10/01/11 ........................ United States 50,000 48,125
b Fontainebleau Las Vegas, 144A, 10.25%, 6/15/15 ........................... United States 50,000 43,375
Liberty Media Corp., senior note, 5.70%, 5/15/13 ......................... United States 50,000 45,885
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 ................... United States 50,000 48,375
MGM MIRAGE, senior note, 6.625%, 7/15/15 ................................. United States 100,000 88,750
b Outback Steakhouse Inc., senior note, 144A, 10.00%, 6/15/15 .............. United States 50,000 43,750
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 ........... United States 50,000 52,000
Quebecor Media Inc., senior note, 7.75%, 3/15/16 ......................... Canada 75,000 70,875
Radio One Inc., senior sub. note, 6.375%, 2/15/13 ........................ United States 50,000 45,500
Royal Caribbean Cruises Ltd., senior deb., 7.25%, 3/15/18 ................ United States 100,000 94,415

10 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON HIGH INCOME FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

CORPORATE BONDS (CONTINUED)
CONSUMER SERVICES (CONTINUED)
Station Casinos Inc., senior sub. note, 6.875%, 3/01/16 .................. United States $ 75,000 $ 63,563
b Univision Communications Inc., senior note, 144A, PIK, 9.75%, 3/15/15 .... United States 50,000 45,750
------------
910,738
------------
ELECTRONIC TECHNOLOGY 5.8%
DRS Technologies Inc., senior sub. note, 7.625%, 2/01/18 ................. United States 50,000 48,250
b Freescale Semiconductor Inc., senior note, 144A, 8.875%, 12/15/14 ........ United States 100,000 91,750
L-3 Communications Corp., senior sub. note, 5.875%, 1/15/15 .............. United States 75,000 68,625
NXP BV/NXP Funding LLC, senior secured note, 7.875%, 10/15/14 ............ Netherlands 50,000 46,438
b,c Sanmina-SCI Corp., senior note, 144A, FRN, 8.11%, 6/15/14 ................ United States 50,000 49,500
b TransDigm Inc., senior sub. note, 144A, 7.75%, 7/15/14 ................... United States 50,000 49,250
------------
353,813
------------
ENERGY MINERALS 6.6%
Chesapeake Energy Corp., senior note, 6.25%, 1/15/18 ..................... United States 100,000 90,750
Mariner Energy Inc., senior note, 7.50%, 4/15/13 ......................... United States 75,000 71,437
Peabody Energy Corp., senior note, 7.375%, 11/01/16 ...................... United States 50,000 49,125
b Petroplus Finance Ltd., senior note, 144A, 6.75%, 5/01/14 ................ Switzerland 75,000 68,813
Pogo Producing Co., senior sub. note, 7.875%, 5/01/13 .................... United States 50,000 50,875
b Tesoro Corp., senior note, 144A, 6.50%, 6/01/17 .......................... United States 75,000 71,250
------------
402,250
------------
FINANCE 3.1%
GMAC LLC, 6.875%, 8/28/12 ................................................ United States 150,000 138,118
United Rentals North America Inc., senior sub. note, 7.75%, 11/15/13 ..... United States 50,000 51,625
------------
189,743
------------
HEALTH SERVICES 8.0%
DaVita Inc., senior sub. note, 7.25%, 3/15/15 ............................ United States 75,000 71,438
b FMC Finance III SA, senior note, 144A, 6.875%, 7/15/17 ................... Germany 75,000 72,562
HCA Inc.,
senior note, 6.50%, 2/15/16 ........................................ United States 50,000 38,750
b senior secured note, 144A, 9.125%, 11/15/14 ........................ United States 75,000 74,250
Tenet Healthcare Corp., senior note, 6.375%, 12/01/11 .................... United States 100,000 85,500
b United Surgical Partners International Inc., senior sub. note, 144A, PIK,
9.25%, 5/01/17 ........................................................ United States 50,000 46,750
b,c U.S. Oncology Holdings Inc., senior note, 144A, FRN, 9.797%, 3/15/12 ..... United States 50,000 46,500
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%, 10/01/14 .... United States 50,000 46,750
------------
482,500
------------
INDUSTRIAL SERVICES 6.5%
Allied Waste North America Inc., senior secured note, 6.875%, 6/01/17 .... United States 50,000 46,750
b Bristow Group Inc., senior note, 144A, 7.50%, 9/15/17 .................... United States 50,000 49,750
Compagnie Generale de Geophysique-Veritas, senior note, 7.75%,
5/15/17 ............................................................... France 50,000 49,000
Copano Energy LLC, senior note, 8.125%, 3/01/16 .......................... United States 50,000 50,250
El Paso Corp., senior note, 6.875%, 6/15/14 .............................. United States 75,000 73,483
Markwest Energy Partners LP, senior note, 6.875%, 11/01/14 ............... United States 50,000 46,750
The Williams Cos. Inc., senior note, 7.625%, 7/15/19 ..................... United States 75,000 76,500
------------
392,483
------------

Annual Report | 11

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON HIGH INCOME FUND COUNTRY PRINCIPAL AMOUNT a VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

CORPORATE BONDS (CONTINUED)
NON-ENERGY MINERALS 2.6%
Freeport-McMoRan Copper & Gold Inc., senior note, 8.375%, 4/01/17 ........ United States $ 75,000 $ 78,937
Novelis Inc., senior note, 7.25%, 2/15/15 ................................ Canada 75,000 75,563
------------
154,500
------------
PROCESS INDUSTRIES 8.5%
Crown Americas Inc., senior note, 7.75%, 11/15/15 ........................ United States 50,000 49,500
Huntsman International LLC, senior sub. note, 7.875%, 11/15/14 ........... United States 50,000 53,750
b Ineos Group Holdings PLC, 144A, 8.50%, 2/15/16 ........................... United Kingdom 75,000 69,000
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 ........................ Ireland 75,000 72,000
Lyondell Chemical Co., senior note, 8.00%, 9/15/14 ....................... United States 75,000 80,625
b MacDermid Inc., senior sub. note, 144A, 9.50%, 4/15/17 ................... United States 50,000 45,750
Nalco Co., senior sub. note, 8.875%, 11/15/13 ............................ United States 75,000 74,250
Owens-Brockway Glass Container Inc., senior note, 6.75%, 12/01/14 ........ United States 75,000 69,375
------------
514,250
------------
PRODUCER MANUFACTURING 5.5%
Case New Holland Inc., senior note, 9.25%, 8/01/11 ....................... United States 50,000 52,550
Commercial Vehicle Group Inc., senior note, 8.00%, 7/01/13 ............... United States 50,000 46,250
Greenbrier Cos. Inc., senior note, 8.375%, 5/15/15 ....................... United States 50,000 49,500
Nortek Inc., senior sub. note, 8.50%, 9/01/14 ............................ United States 50,000 43,250
RBS Global & Rexnord Corp., senior note, 9.50%, 8/01/14 .................. United States 75,000 72,750
b TRW Automotive Inc., senior note, 144A, 7.25%, 3/15/17 ................... United States 75,000 69,750
------------
334,050
------------
REAL ESTATE DEVELOPMENT 0.8%
Forest City Enterprises Inc., senior note, 7.625%, 6/01/15 ............... United States 50,000 48,250
------------
REAL ESTATE INVESTMENT TRUST 1.6%
Host Marriott LP, senior note, K, 7.125%, 11/01/13 ....................... United States 100,000 97,750
------------
RETAIL TRADE 1.9%
b Dollar General Corp., senior note, 144A, 10.625%, 7/15/15 ................ United States 75,000 66,750
b Michaels Stores Inc., senior note, 144A, 10.00%, 11/01/14 ................ United States 50,000 48,750
------------
115,500
------------
TECHNOLOGY SERVICES 1.7%
SunGard Data Systems Inc.,
senior note, 9.125%, 8/15/13 .......................................... United States 75,000 75,750
senior sub. note, 10.25%, 8/15/15 ..................................... United States 25,000 25,125
------------
100,875
------------
UTILITIES 6.3%
Aquila Inc., senior note, 9.95%, 2/01/11 ................................. United States 75,000 79,685
Dynegy Holdings Inc., senior note, 8.375%, 5/01/16 ....................... United States 75,000 70,125
b Edison Mission Energy, senior note, 144A, 7.00%, 5/15/17 ................. United States 50,000 45,375
Mirant North America LLC, senior note, 7.375%, 12/31/13 .................. United States 50,000 50,000
NRG Energy Inc., senior note, 7.375%, 2/01/16 ............................ United States 100,000 96,750
TXU Corp., senior note, P, 5.55%, 11/15/14 ............................... United States 50,000 40,584
------------
382,519
------------
TOTAL CORPORATE BONDS (COST $6,073,554) .................................. 5,859,039
------------

12 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

- -------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON HIGH INCOME FUND COUNTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------

SHORT TERM INVESTMENT (COST $91,785) 1.5%
MONEY MARKET FUND 1.5%
d Franklin Institutional Fiduciary Trust Money Market Portfolio, 5.00% ..... United States 91,785 $ 91,785
----------
TOTAL INVESTMENTS (COST $6,165,339) 98.2% ................................ 5,950,824
OTHER ASSETS, LESS LIABILITIES 1.8% ...................................... 111,216
----------
NET ASSETS 100.0% ........................................................ $6,062,040
==========

SELECTED PORTFOLIO ABBREVIATIONS

FRN - Floating Rate Note
PIK - Payment-In-Kind

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

b Security was purchased pursuant to Rule 144A under the Securities Act of 1933
and may be sold in transactions exempt from registration only to qualified
institutional buyers or in a public offering registered under the Securities Act
of 1933. These securities have been deemed liquid under guidelines approved by
the Trust's Board of Trustees. At July 31, 2007, the aggregate value of these
securities was $1,344,187, representing 22.17% of net assets.

c The coupon rate shown represents the rate at period end.

d See Note 7 regarding investments in the Franklin Institutional Fiduciary Trust
Money Market Portfolio. The rate shown is the annualized seven-day yield at
period end.

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

Franklin Global Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
July 31, 2007

-------------
FRANKLIN
TEMPLETON
HIGH INCOME
FUND
-------------
Assets:
Investments in securities:
Cost - Unaffiliated issuers ............................. $ 6,073,554
Cost - Sweep Money Fund (Note 7) ........................ 91,785
-------------
Total cost of investments ............................... $ 6,165,339
=============
Value - Unaffiliated issuers ............................ $ 5,859,039
Value - Sweep Money Fund (Note 7) ....................... 91,785
-------------
Total value of investments .............................. 5,950,824
Receivables:
Interest ................................................ 127,404
Affiliates .............................................. 32,928
-------------
Total assets ......................................... 6,111,156
-------------
Liabilities:
Payables:
Distributions to shareholders ........................... 38,932
Reports to shareholders ................................. 6,706
Accrued expenses and other liabilities ..................... 3,478
-------------
Total liabilities .................................... 49,116
=============
Net assets, at value .............................. $ 6,062,040
=============
Net assets consist of:
Paid-in capital ............................................ $ 6,195,094
Distributions in excess of net investment income ........... (10,322)
Net unrealized appreciation (depreciation) ................. (214,515)
Accumulated net realized gain (loss) ....................... 91,783
-------------
Net assets, at value .............................. $ 6,062,040
=============
Shares outstanding ............................................ 621,915
=============
Net asset value and maximum offering price per share a ........ $ 9.75
=============

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

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the year ended July 31, 2007

-------------
FRANKLIN
TEMPLETON
HIGH INCOME
FUND
-------------
Investment income:
Dividends from Sweep Money Fund (Note 7) ................... $ 6,185
Interest ................................................... 528,768
-------------
Total investment income ................................. 534,953
-------------
Expenses:
Management fees (Note 3a) .................................. 20,251
Administrative fees (Note 3b) .............................. 13,744
Transfer agent fees (Note 3d) .............................. 1,792
Custodian fees (Note 4) .................................... 109
Reports to shareholders .................................... 13,312
Registration and filing fees ............................... 14,653
Professional fees .......................................... 27,823
Trustees' fees and expenses ................................ 591
Other ...................................................... 8,933
-------------
Total expenses .......................................... 101,208
Expense reductions (Note 4) ............................. (29)
Expenses waived/paid by affiliates (Note 3e) ............ (66,819)
-------------
Net expenses ......................................... 34,360
-------------
Net investment income ............................. 500,593
-------------
Realized and unrealized losses:
Net realized gain (loss) from investments .................. 103,523
Net change in unrealized appreciation (depreciation)
on investments .......................................... (126,710)
-------------
Net realized and unrealized gain (loss) ....................... (23,187)
-------------
Net increase (decrease) in net assets resulting from
operations ................................................. $ 477,406
=============

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

--------------------------
FRANKLIN TEMPLETON
HIGH INCOME FUND
--------------------------
YEAR ENDED JULY 31,
2007 2006
--------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ...................................................................... $ 500,593 $ 523,845
Net realized gain (loss) from investments .................................................. 103,523 112,432
Net change in unrealized appreciation (depreciation) on investments ........................ (126,710) (378,241)
--------------------------
Net increase (decrease) in net assets resulting from operations ......................... 477,406 258,036
--------------------------
Distributions to shareholders from:
Net investment income ...................................................................... (507,847) (534,979)
Net realized gains ......................................................................... (44,509) (167,770)
--------------------------
Total distributions to shareholders ........................................................... (552,356) (702,749)
--------------------------
Capital share transactions (Note 2) ........................................................... (932,051) (647,229)
--------------------------
Net increase (decrease) in net assets ................................................... (1,007,001) (1,091,942)
Net assets:
Beginning of year ............................................................................. 7,069,041 8,160,983
--------------------------
End of year ................................................................................... $ 6,062,040 $ 7,069,041
==========================
Distributions in excess of net investment income included in net assets:
End of year ................................................................................... $ (10,322) $ (14,099)
==========================

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

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS

FRANKLIN TEMPLETON HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

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

Annual Report | 17

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

time at which trading in a security is completed and the close of the NYSE that
might call into question the availability (including the reliability) of the
value of a portfolio security held by the Fund. If such an event occurs, the
securities may be valued using fair value procedures, which may include the use
of independent pricing services. All security valuation procedures are approved
by the Trust's Board of Trustees.

B. INCOME TAXES

C. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

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

D. ACCOUNTING ESTIMATES

18 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E. REDEMPTION FEES

A short term trading redemption fee will be imposed, with some exceptions, on
any fund shares that are redeemed or exchanged within seven calendar days
following their purchase date. The redemption fee is 2% of the amount redeemed.
Such fees are retained by the Fund and accounted for as an addition to paid-in
capital. There were no redemption fees for the year.

F. GUARANTEES AND INDEMNIFICATIONS

2. SHARES OF BENEFICIAL INTEREST

At July 31, 2007, there were an unlimited number of shares authorized (no par
value). Transactions in the Fund's shares were as follows:

-------------------------------------------------
YEAR ENDED JULY 31,
2007 2006
-------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------

Shares sold .......................................... 28,854 $ 302,000 79,423 $ 835,000
Shares issued in reinvestment of distributions ....... 4,338 44,509 16,595 167,771
Shares redeemed ...................................... (122,000) (1,278,560) (156,845) (1,650,000)
-------------------------------------------------
Net increase (decrease) .............................. (88,808) $ (932,051) (60,827) $ (647,229)
=================================================

3. TRANSACTIONS WITH AFFILIATES

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

Annual Report | 19

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

A. MANAGEMENT FEES

The Fund pays an investment management fee to Fiduciary of 0.30% 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.

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services of 0.20% per year of the
average daily net assets of the Fund.

C. DISTRIBUTION FEES

The Trust's Board of Trustees has adopted a distribution plan pursuant to Rule
12b-1 under the 1940 Act. The Fund has not activated the plan.

D. TRANSFER AGENT FEES

For the year ended July 31, 2007, the Fund paid transfer agent fees of $1,792,
of which $56 was retained by Investor Services.

E. WAIVER AND EXPENSE REIMBURSEMENTS

FT Services and Fiduciary have agreed in advance to waive a portion of their
respective fees and to assume payment of other expenses through November 30,
2008. Total expenses waived/paid are not subject to reimbursement by the Fund
subsequent to the Fund's fiscal year end. After November 30, 2008, FT Services
and Fiduciary may discontinue this waiver at any time upon notice to the Fund's
Board of Trustees.

4. EXPENSE OFFSET ARRANGEMENT

20 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

5. INCOME TAXES

The tax character of distributions paid during the years ended July 31, 2007 and
2006, was as follows:

-------------------
2007 2006
-------------------
Distribution paid from:
Ordinary income ....................................... $518,438 $629,033
Long term capital gain ................................ 33,918 73,716
-------------------
$552,356 $702,749
===================

At July 31, 2007, the cost of investments, net unrealized appreciation
(depreciation), undistributed ordinary income and undistributed long term
capital gains for income tax purposes were as follows:

Cost of investments .............................................. $6,176,317
===========

Unrealized appreciation .......................................... $ 40,853
Unrealized depreciation .......................................... (266,346)
-----------
Net unrealized appreciation (depreciation) ....................... $ (225,493)
===========

Undistributed ordinary income .................................... $ 85,095
Undistributed long term capital gains ............................ 46,273
-----------
Distributable earnings ........................................... $ 131,368
===========

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of bond discounts and premiums.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales and bond discounts and
premiums.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
year ended July 31, 2007, aggregated $3,179,271 and $4,215,023, 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 and administrative
fees paid by the Sweep Money Fund.

Annual Report | 21

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

8. SHAREHOLDER CONCENTRATIONS

The Fund has a concentration of shareholders holding a significant percentage of
shares outstanding. Investment activities of these shareholders could have a
material impact on the Fund. At July 31, 2007, there were three unaffiliated
shareholders, holding 44%, 39% and 15% of the Fund's outstanding shares.

9. CREDIT RISK

The Fund has 98.5% 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 AND LITIGATION MATTERS

22 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

10. REGULATORY AND LITIGATION MATTERS (CONTINUED)

11. NEW ACCOUNTING PRONOUNCEMENTS

Annual Report | 23

Franklin Global Trust

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

FRANKLIN TEMPLETON HIGH INCOME FUND

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FRANKLIN GLOBAL TRUST

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 the Franklin Templeton High Income
Fund (one of the funds constituting the Franklin Global Trust, hereafter
referred to as the "Fund") at July 31, 2007, the results of its operations for
the year then ended, the changes of its net assets for each of the two years in
the period then ended 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
Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at July
31, 2007 by correspondence with the custodian, provide a reasonable basis for
our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 17, 2007

24 | Annual Report

Franklin Global Trust

TAX DESIGNATION (UNAUDITED)

FRANKLIN TEMPLETON HIGH INCOME FUND

Under Section 852(b)(3)(C) of the Internal Revenue Code (Code), the Fund
designates the maximum amount allowable but no less than $46,334 as a long term
capital gain dividend for the fiscal year ended July 31, 2007.

Under Section 871(k)(2)(C) of the Code, the Fund designates the maximum amount
allowable but no less than $48,151 as a short term capital gain dividend for
purposes of the tax imposed under Section 871(a)(1)(A) of the Code for the
fiscal year ended July 31, 2007.

Annual Report | 25

Franklin Global Trust

Franklin Templeton High Income Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED)

A Special Meeting of Shareholders of the Trust was held at the Trust's offices,
One Franklin Parkway, San Mateo, California on March 21, 2007. The purpose of
the meeting was to elect Trustees of the Trust and to vote on the following
Proposals and Sub-Proposals: to approve an Amended and Restated Agreement and
Declaration of Trust; and to approve amendments to certain of the Franklin
Templeton High Income Fund's (the "Fund") fundamental investment restrictions
(including three (3) Sub-Proposals). At the meeting, the following persons were
elected by the shareholders to serve as Independent Trustees of the Trust:
Harris J. Ashton, Robert F. Carlson, Sam Ginn, Edith E. Holiday, Frank W. T.
LaHaye, Frank A. Olson, Larry D. Thompson, and John B. Wilson. Charles B.
Johnson and Gregory E. Johnson were elected by the shareholders to serve as
Interested Trustees. Shareholders also approved the Amended and Restated
Agreement and Declaration of Trust and amendments to certain of the Fund's
fundamental investment restrictions (including three (3) Sub-Proposals). No
other business was transacted at the meeting.

Proposal 1. The Election of Trustees:

Proposal 2. To approve an Amended and Restated Agreement and Declaration of
Trust:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For .......................... 29,754,630.388 79.514% 95.151%
Against ...................... 5,747.015 0.015% 0.018%
Abstain ...................... 7,315.354 0.020% 0.023%
Broker non-votes ............. 1,503,652.000 4.018% 4.808%
- ------------------------------------------------------------------------
TOTAL ........................ 31,271,344.757 83.567% 100.000%

26 | Annual Report

Franklin Global Trust

Franklin Templeton High Income Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Fund's fundamental
investment restrictions (includes three (3) Sub-Proposals):

(a) To amend the Fund's fundamental investment restriction regarding lending:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For ............................ 719,914.957 100.000% 100.000%
Against ........................ -- -- --
Abstain ........................ -- -- --
- ------------------------------------------------------------------------
TOTAL .......................... 719,914.957 100.000% 100.000%

(b) To amend the Fund's fundamental investment restriction regarding investments
in real estate:

- ------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- ------------------------------------------------------------------------
For ............................ 719,914.957 100.000% 100.000%
Against ........................ -- -- --
Abstain ........................ -- -- --
- ------------------------------------------------------------------------
TOTAL .......................... 719,914.957 100.000% 100.000%

Annual Report | 27

Franklin Global Trust

BOARD MEMBERS AND OFFICERS

INDEPENDENT BOARD MEMBERS

HARRIS J. ASHTON (1932) 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 (1928) Trustee Since 2000 121 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice President, senior member and past President, Board of Administration, California Public Employees Retirement Systems
(CALPERS); and FORMERLY, member and Chairman of the Board, Sutter Community Hospitals; member, Corporate Board, Blue Shield of
California; and Chief Counsel, California Department of Transportation.
- ------------------------------------------------------------------------------------------------------------------------------------
SAM GINN (1937) Trustee Since March 2007 121 Director, Chevron Corporation (global
One Franklin Parkway energy company) and ICO Global
San Mateo, CA 94403-1906 Communications (Holdings) Limited
(satellite company).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Private investor; and FORMERLY, Chairman of the Board, Vodafone AirTouch (wireless company), PLC; Chairman of the Board and Chief
Executive Officer, AirTouch Communications (cellular communications) (1993-1998) and Pacific Telesis Groups (telephone holding
company) (1988-1994).
- ------------------------------------------------------------------------------------------------------------------------------------
EDITH E. HOLIDAY (1952) Trustee Since 2000 140 Director, Hess Corporation (formerly,
One Franklin Parkway Amerada Hess Corporation) (exploration
San Mateo, CA 94403-1906 and refining of oil and gas), H.J. Heinz
Company (processed foods and allied
products), RTI International Metals,
Inc. (manufacture and distribution of
titanium), Canadian National Railway
(railroad) and White Mountains Insurance
Group, Ltd. (holding company).

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

28 | Annual Report

FRANK W.T. LAHAYE (1929) Trustee Since 2000 121 Director, Center for Creative Land
One Franklin Parkway Recycling (brownfield redevelopment).
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
President and Founder, Hyannis Port Capital, Inc. (real estate and private equity investing); serves on private and non-profit
boards; and FORMERLY, Chief Operating Officer and Executive Vice President, Gap, Inc. (retail) (1996-2000); Chief Financial
Officer and Executive Vice President - Finance Strategy, Staples, Inc. (office supplies) (1992-1996); Executive Vice President -
Corporate Planning, Northwest Airlines, Inc. (airlines) (190-1992); Vice President and Partner, Bain & Company (consulting firm)
(1986-1990).
- ------------------------------------------------------------------------------------------------------------------------------------

INTERESTED BOARD MEMBERS AND OFFICERS

**CHARLES B. JOHNSON (1933) 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.; Director, Templeton Worldwide,
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 42 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------

Annual Report | 29

**GREGORY E. JOHNSON (1961) Trustee Since March 2007 91 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Director, President and Chief Executive Officer, Franklin Resources, Inc.; President, Templeton Worldwide, Inc.; Director,
Templeton Asset Management Ltd.; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of
Franklin Resources, Inc. and of 33 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JAMES M. DAVIS (1952) Chief Chief Compliance Not Applicable Not Applicable
One Franklin Parkway Compliance Officer since 2004
San Mateo, CA 94403-1906 Officer and and Vice
Vice President President - AML
- AML Compliance since
Compliance 2006

30 | Annual Report

DAVID P. GOSS (1947) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

Annual Report | 31

CRAIG S. TYLE (1960) Vice President Since 2005 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
General Counsel and Executive Vice President, Franklin Resources, Inc.; officer of some of the other subsidiaries of Franklin
Resources, Inc. and of 46 of the investment companies in Franklin Templeton Investments; and FORMERLY, Partner, Shearman &
Sterling, LLP (2004-2005); and General Counsel, Investment Company Institute (ICI) (1997-2004).
- ------------------------------------------------------------------------------------------------------------------------------------
GALEN G. VETTER (1951) Chief Financial Since 2004 Not Applicable Not Applicable
500 East Broward Blvd. Officer and
Suite 2100 Chief
Fort Lauderdale, FL 33394-3091 Accounting
Officer

Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are brothers and the
father and uncle, respectively, of Gregory E. Johnson.

Note 2: Officer information is current as of the date of this report. It is
possible that after this date, information about officers may change.

Note 3: Prior to July 31, 2007, Harmon E. Burns, S. Joseph Fortunato, Rupert H.
Johnson, Jr. and Gordon S. Macklin ceased to be trustees of the Trust.

32 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION

FRANKLIN TEMPLETON HIGH INCOME FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

Annual Report | 33

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

policies and restrictions for the Fund were consistently complied with as well
as other reports periodically furnished the Board covering matters such as the
compliance of portfolio managers and other management personnel with the code of
ethics adopted throughout the Franklin Templeton fund complex, the adherence to
fair value pricing procedures established by the Board, and the accuracy of net
asset value calculations. The Board also noted the extent of benefits provided
Fund shareholders from being part of the Franklin Templeton family of funds,
including the right to exchange investments between the same class of funds
without a sales charge, the ability to reinvest Fund dividends into other funds
and the right to combine holdings in other funds to obtain a reduced sales
charge. Favorable consideration was given to management's continuous efforts and
expenditures in establishing back-up systems and recovery procedures to function
in the event of a natural disaster, it being noted that such systems and
procedures had functioned smoothly during the Florida hurricanes and blackouts
experienced in recent years. Consideration was also given to the experience of
the Fund's portfolio management team, the number of accounts managed and general
method of compensation. In this latter respect, the Board noted that a primary
factor in management's determination of a portfolio manager's bonus compensation
was the relative investment performance of the funds he or she managed and that
a portion of such bonus was required to be invested in a pre-designated list of
funds within such person's fund management area so as to be aligned with the
interests of Fund shareholders. The Board also took into account the quality of
transfer agent and shareholder services provided Fund shareholders by an
affiliate of the Manager, noting continuing expenditures by management to
increase and improve the scope of such services, periodic favorable reports on
such service conducted by third parties, the high industry ranking given to the
Franklin Templeton website, and the firsthand experience of individual Board
members who deal with the shareholder services department in their capacities as
shareholders in one or more of the various Franklin Templeton funds.

INVESTMENT PERFORMANCE. The Board placed significant emphasis on the investment
performance of the Fund in view of its importance to shareholders. While
consideration was given to performance reports and discussions with portfolio
managers at Board meetings throughout the year, particular attention in
assessing performance was given to the Lipper reports furnished for the
agreement renewals. The Lipper reports prepared for the Fund showed its
investment performance in comparison to a performance universe selected by
Lipper. Comparative performance for the Fund was shown for the one-year period
ended December 31, 2006, and for additional periods ended that date depending on
when the Fund commenced operations. Investment performance was shown on a total
return basis and on an income return basis for Franklin Templeton High Income
Fund. The following summarizes the performance results for the Fund and the
Board's view of such performance.

The performance universe for the Fund consisted of the Fund and all retail and
institutional high current yield funds as selected by Lipper. The Fund has been
in operation for only three full years

34 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

and the Lipper report showed the Fund's income return to be in the
second-highest quintile of such performance universe for both the one- and
three-year periods, and its total return to be in the middle quintile of such
universe for the one-year period and the highest quintile of such universe for
the three-year period. The Board was satisfied with the Fund's performance.

COMPARATIVE EXPENSES. Consideration was given to the management fee and total
expense ratios of the Fund compared with those of a group of funds selected by
Lipper as its appropriate Lipper expense group. Prior to making such
comparisons, the Board relied upon a survey showing that the scope of management
advisory services covered under a Fund's investment management agreement was
similar to those provided by fund managers to other mutual fund groups. In
reviewing comparative costs, emphasis was given to the Fund's management fee in
comparison with the contractual investment management fee that would have been
charged by other funds within its Lipper expense group assuming they were
similar in size to the Fund, as well as the actual total expenses of the Fund in
comparison with those of its Lipper expense group. The Lipper contractual
investment management fee analysis includes the advisory and administrative fees
directly charged to the Fund as being part of the management fee. Both the
contractual investment management fee rate and actual total expenses were in the
least expensive quintile of the Fund's Lipper expense group. The Board was
satisfied with these comparative expenses.

MANAGEMENT PROFITABILITY. The Board also considered the level of profits
realized by the Manager and its affiliates in connection with the operation of
the Fund. In this respect, the Board reviewed the Fund profitability analysis
that addresses the overall profitability of Franklin Templeton's U.S. fund
business, as well as its profits in providing management and other services to
the Fund. Specific attention was given to the methodology followed in allocating
costs to the Fund, it being recognized that allocation methodologies are
inherently subjective and various allocation methodologies may each be
reasonable while producing different results. In this respect, the Board noted
that, while being continuously refined and reflecting changes in the Manager's
own cost accounting, the allocation methodology was consistent with that
followed in profitability report presentations for the Fund made in prior years
and that the Fund's independent registered public accounting firm had been
engaged by the Manager to perform certain procedures on a biennial basis,
specified and approved by the Manager and the Fund's Board solely for their
purposes and use in reference to the profitability analysis. In reviewing and
discussing such analysis, management discussed with the Board its belief that
costs incurred in establishing the infrastructure necessary for the type of
mutual fund operations conducted by the Manager and its affiliates may not be
fully reflected in the expenses allocated to the Fund in determining its
profitability, as well as the fact that the level of profits, to a certain
extent, reflected operational cost savings and efficiencies initiated by
management. The Board also took into account management's expenditures in
improving shareholder services provided the Fund, as well as the need to meet
additional regulatory and compliance requirements resulting from the
Sarbanes-Oxley Act and recent SEC requirements.

Annual Report | 35

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN TEMPLETON HIGH INCOME FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

In addition, the Board considered a third-party study comparing the
profitability of the Manager's parent on an overall basis as compared to other
publicly held managers broken down to show profitability from management
operations exclusive of distribution expenses, as well as profitability
including distribution expenses. The Board also considered the extent to which
the Manager and its affiliates might derive ancillary benefits from fund
operations, including potential benefits resulting from allocation of fund
brokerage and the use of "soft" commission dollars to pay for research. Based
upon its consideration of all these factors, the Board determined that the level
of profits realized by the Manager and its affiliates from providing services to
the Fund was not excessive in view of the nature, quality and extent of services
provided.

ECONOMIES OF SCALE. The Board also considered whether economies of scale are
realized by the Manager as the Fund grows larger and the extent to which this is
reflected in the level of management fees charged. While recognizing that any
precise determination is inherently subjective, the Board noted that based upon
the Fund profitability analysis, it appears that as some funds get larger, at
some point economies of scale do result in the Manager realizing a larger profit
margin on management services provided such a fund. The Board believed that no
economies of scale existed in the management of the Fund that has been in
operation for only three full years and benefited from partial fee waivers or
expense reimbursements.

PROXY VOTING POLICIES AND PROCEDURES

QUARTERLY STATEMENT OF INVESTMENTS

36 | Annual Report

[LOGO](R)
FRANKLIN TEMPLETON
INSTITUTIONAL

FRANKLIN TEMPLETON INSTITUTIONAL

600 Fifth Avenue
New York, NY 10020

ANNUAL REPORT

FRANKLIN TEMPLETON HIGH INCOME FUND

INVESTMENT MANAGER

Fiduciary International, Inc.

DISTRIBUTOR

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

FRANKLIN TEMPLETON INSTITUTIONAL SERVICES

1-800/321-8563

067 A2007 09/07

[GRAPHIC OMITTED]

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

ANNUAL REPORT | JULY 31, 2007
- --------------------------------------------------------------------------------

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

FRANKLIN GLOBAL TRUST

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

Franklin International Smaller Companies Growth Fund

[LOGO](R)
FRANKLIN TEMPLETON
INSTITUTIONAL

Contents

ANNUAL REPORT

Franklin International Smaller Companies Growth Fund ...................... 1

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

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

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

Financial Statements ...................................................... 14

Notes to Financial Statements ............................................. 17

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

Tax Designation ........................................................... 26

Meeting of Shareholders ................................................... 27

Board Members and Officers ................................................ 30

Shareholder Information ................................................... 35

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

Annual Report

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 with market capitalizations not exceeding $2 billion (or
the equivalent in local currencies), or the highest market capitalization of the
Standard & Poor's (S&P)/Citigroup <$2 Billion Cap Range EPAC (Europe Pacific
Asia Composite) Index, whichever is greater at the time of purchase. 1 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.

This annual report for Franklin International Smaller Companies Growth Fund
covers the fiscal year ended July 31, 2007.

1. The S&P/Citigroup <$2 Billion Cap Range EPAC Index is a float-adjusted,
market capitalization-weighted index designed to measure performance of European
and Asian equity securities with market capitalizations of less than $2 billion.
The index is rebalanced monthly by market capitalization.

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 11.

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

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

Annual Report | 1

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

GEOGRAPHIC BREAKDOWN
Based on Total Net Assets as of 7/31/07

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

Europe .................................................................. 62.2%
Asia .................................................................... 30.3%
Middle East & Africa .................................................... 1.0%
Short-Term Investments & Other Net Assets ............................... 6.5%

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

- --------------------------------------------------------------------------------
PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT FTINSTITUTIONAL.COM OR CALL 1-800/321-8563 FOR MOST
RECENT MONTH-END PERFORMANCE.
- --------------------------------------------------------------------------------

PERFORMANCE OVERVIEW

The Fund posted a +32.04% cumulative total return for the 12 months ended July
31, 2007. The Fund performed comparably to its benchmark, the S&P/Citigroup <$2
Billion Cap Range EPAC Index, which returned +32.78% for the same period. 2 You
can find more performance data in the Performance AAA Summary beginning on page
6.

ECONOMIC AND MARKET OVERVIEW

In spite of elevated energy prices, higher global interest rates, a weaker U.S.
housing market and restrained U.S. economic growth, the global economy was
mostly resilient throughout the 12-month period ended July 31, 2007. Sustained
consumer and corporate demand, reasonably low inflation, tight or improving
labor markets, and moderate, though higher, global interest rates have
consistently supported economic growth since the global economic recovery began
in 2002.

The mood in the global equity markets was predominantly positive, but was
interrupted in the first quarter of 2007 due to concerns of slower economic
growth. Investors worldwide pondered the possibility that troubles in the U.S.
subprime mortgage market could spread into the broader economy and potentially
undermine the pace of global economic and corporate profit growth.

2. Source: Standard & Poor's Micropal. See footnote 1 for a description of the
S&P/Citigroup <$2 Billion Cap Range EPAC Index. The index is unmanaged and
includes reinvested distributions. One cannot invest directly in an index, nor
is an index representative of the Fund's portfolio.

2 | Annual Report

These concerns subsided somewhat as some U.S. economic data pointed to a rebound
during the second quarter. However, by period-end, worries about the weak
housing market, uneven domestic growth and tighter borrowing conditions
resurfaced and culminated in a widespread sell-off across global markets.

Although financing costs increased gradually from unprecedented low levels,
global liquidity -- petrodollars, corporate cash, private equity, household
savings and central banks' reserves -- remained abundant for most of the
reporting period. As investible cash looked for a home, global merger and
acquisition activity was heightened. The total value of deals announced in the
first six months of this year was more than $2.6 trillion. 3

With this backdrop, most global equity markets ended the 12 months with
double-digit total returns despite volatility late in the review period. Many
stock market indexes in the U.S. and most European countries reached seven-year
highs, and many emerging market indexes in Asia, Europe and Latin America neared
or reached all-time highs during the reporting period.

INVESTMENT STRATEGY

In choosing individual equity investments, we utilize a fundamental, "bottom-up"
approach involving in-depth analysis of individual equity securities. In
narrowing down the universe of eligible investments, we employ a quantitative
and qualitative approach to identify smaller international companies that may
benefit from longer-term dynamic growth. Such companies tend to have proprietary
products and services, which can sustain a longer-term competitive advantage.
Additionally, the companies we invest in tend to also have a strong balance
sheet and/or have the ability to generate cash flow over the next five years.
After we identify a company, we conduct thorough analysis to establish the
earning prospects and determine the value of the company. Overall, we seek to
invest in growth companies with attractive valuations.

We do not select investments for the Fund that are merely representative of the
small cap asset class, but instead aim to produce a portfolio of securities of
exceptional companies operating in sectors that offer attractive growth
potential. While we seek to outperform the S&P/Citigroup <$2 Billion Cap Range
EPAC Index, the Fund may take positions that are not represented in the index.

3. Source: Thomson Financial.

PORTFOLIO BREAKDOWN
Based on Total Net Assets as of 7/31/07

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

Diversified Consumer Services 7.1%
Construction & Engineering 7.0%
Food Products 6.7%
Media 6.4%
Machinery 5.4%
Health Care Equipment & Supplies 5.3%
Textiles, Apparel & Luxury Goods 5.0%
Road & Rail 4.2%
Hotels, Restaurants & Leisure 4.2%
Health Care Providers & Services 3.9%
Metals & Mining 3.7%
Capital Markets 3.6%
Communications Equipment 3.2%
Commercial Services & Supplies 3.2%
Insurance 3.1%
Building Products 3.0%
Leisure Equipment & Products 2.8%
Biotechnology 2.1%
Office Electronics 2.0%
Other 11.6%
Short-Term Investments & Other Net Assets 6.5%

Annual Report | 3

TOP 10 COUNTRIES
7/31/07

- --------------------------------------------------------------------------------
% OF TOTAL
NET ASSETS
- --------------------------------------------------------------------------------
Japan 16.8%
- --------------------------------------------------------------------------------
U.K. 15.7%
- --------------------------------------------------------------------------------
Netherlands 10.6%
- --------------------------------------------------------------------------------
France 8.1%
- --------------------------------------------------------------------------------
Belgium 7.4%
- --------------------------------------------------------------------------------
Hong Kong 6.4%
- --------------------------------------------------------------------------------
South Korea 4.9%
- --------------------------------------------------------------------------------
Germany 4.0%
- --------------------------------------------------------------------------------
Italy 3.1%
- --------------------------------------------------------------------------------
Switzerland 3.0%
- --------------------------------------------------------------------------------

MANAGER'S DISCUSSION

During the 12 months under review, the Fund's performance relative to the
benchmark S&P/Citigroup <$2 Billion Cap Range EPAC Index benefited most from
stock selection in the consumer discretionary sector. 4 Specifically, Hong
Kong-based watch designer and manufacturer Peace Mark (Holdings) was a major
contributor to Fund performance. Peace Mark, which has 850 retail outlets
throughout China, performed well and maintained strong operating results while
rapidly expanding its retail presence in department stores and at stand-alone
locations. The company has plans to open approximately 100 new outlets annually
over the next several years, mostly in second-tier Chinese cities. Another
strong contributor to Fund performance during the Fund's fiscal year was
MegaStudy, a leading South Korean online educational services company, which
benefited from strong demand for its middle school and high school products.
Several industrials sector holdings also helped performance. 5 For example,
South Korean engineering and construction firm Samsung Engineering performed
well, as did French fiber-optics cabling company Nexans (sold by period-end) and
forged steel products and plastic machinery manufacturer Japan Steel Works.

Conversely, stock selection in the materials sector detracted from relative Fund
performance. 6 Notably, the Fund's investment in Sumitomo Titanium, a Japanese
manufacturer of high-grade titanium and silicon products, hurt relative
performance despite positive absolute returns. In our view, investor concerns of
a potentially flooded titanium market over the next several years due to China's
increased production hindered the company's prospects. In addition, negative
returns from Hong Kong-based organic fertilizer company Century Sunshine
Ecological Technology Holdings, which is not an index component, also weighed on
Fund results. Century Sunshine's shares fell sharply after the company was
denied a permit to construct a 400,000 ton production facility in Fujian
province. However, despite the setback, our outlook for Century Sunshine
remained positive at period-end as our analysis indicated that Century
Sunshine's balance sheet was healthy and its shares were attractively valued. We
also believed the company was well positioned as China's largest organic
fertilizer producer to benefit from the Chinese government's move away from
chemical fertilizers over the next five years. Other significant detractors from
relative performance during the period included French biotechnology company
Flamel Technologies (not an index component), Japan-based hair care

4. The Fund's consumer discretionary holdings are in the auto components;
diversified consumer services; hotels, restaurants and leisure; leisure
equipment and products; media; personal products; and textiles, apparel and
luxury goods industries in the SOI.

5. The Fund's industrials holdings are in the building products, commercial
services and supplies, construction and engineering, electrical equipment,
machinery, and road and rail industries in the SOI.

6. The Fund's materials holdings are in the chemicals and metals and mining
industries in the SOI.

4 | Annual Report

products manufacturer Milbon and Japanese parking equipment and services
operator PARK24.

From a geographic perspective, our underweighted allocation to Japan helped the
Fund's relative performance as Japan was the worst performing equity market
among developed countries during the year under review. The Fund also benefited
from an overweighted position in Europe, which was the best performing developed
market region. On the other hand, underweighted exposure to Asia-Pacific (ex
Japan) hurt relative Fund performance.

During the reporting period, consistent with our disciplined methodology, we
continued to search for smaller growth companies with attractive valuations
outside the U.S. despite recent market volatility. Oftentimes, volatility
creates opportunities for us to invest in what we believe are great companies at
great prices as we attempt to benefit from the dynamics of investor psychology.
We closely examine downside risk as part of our everyday process. In other
words, we attempt to establish a margin of safety that includes what we believe
are competitive advantages that could offer additional returns over the long
term. Moreover, the companies that we invest in are often overlooked and
undervalued by investment experts due to the companies' relatively small size,
thus further supporting our outlook for the long term.

Thank you for your continued participation in Franklin International Smaller
Companies Growth Fund. We look forward to serving your future investment needs.

[PHOTO OMITTED] /s/ Edwin Lugo, CFA
Portfolio Manager
Franklin International Smaller Companies Growth Fund

TOP 10 EQUITY HOLDINGS
7/31/07

- --------------------------------------------------------------------------------
COMPANY % OF TOTAL
SECTOR/INDUSTRY, COUNTRY NET ASSETS
- --------------------------------------------------------------------------------
EVS Broadcast Equipment SA 3.2%
COMMUNICATIONS EQUIPMENT, BELGIUM
- --------------------------------------------------------------------------------
MegaStudy Co. Ltd. 2.9%
DIVERSIFIED CONSUMER SERVICES,
SOUTH KOREA
- --------------------------------------------------------------------------------
Tele Atlas NV 2.8%
DIVERSIFIED CONSUMER SERVICES,
NETHERLANDS
- --------------------------------------------------------------------------------
Vitasoy International Holdings Ltd. 2.4%
FOOD PRODUCTS, HONG KONG
- --------------------------------------------------------------------------------
Unibet Group PLC 2.4%
HOTELS, RESTAURANTS & LEISURE, U.K.
- --------------------------------------------------------------------------------
Tubacex SA 2.4%
METALS & MINING, SPAIN
- --------------------------------------------------------------------------------
Peace Mark (Holdings) Ltd. 2.4%
TEXTILES, APPAREL & LUXURY GOODS,
HONG KONG
- --------------------------------------------------------------------------------
Homeserve PLC 2.3%
COMMERCIAL SERVICES & SUPPLIES, U.K.
- --------------------------------------------------------------------------------
RHJ International 2.3%
CAPITAL MARKETS, BELGIUM
- --------------------------------------------------------------------------------
Parkway Holdings Ltd. 2.2%
HEALTH CARE PROVIDERS & SERVICES,
SINGAPORE
- --------------------------------------------------------------------------------

Annual Report | 5

Performance Summary as of 7/31/07

PRICE AND DISTRIBUTION INFORMATION

- --------------------------------------------------------------------------------
SYMBOL: FKSCX CHANGE 7/31/07 7/31/06
- --------------------------------------------------------------------------------
Net Asset Value (NAV) +$7.25 $31.70 $24.45
- --------------------------------------------------------------------------------
DISTRIBUTIONS (8/1/06-7/31/07)
- --------------------------------------------------------------------------------
Dividend Income $0.0937
- --------------------------------------------------------------------------------
Short-term Capital Gain $0.1112
- --------------------------------------------------------------------------------
Long-term Capital Gain $0.2920
- --------------------------------------------------------------------------------
TOTAL $0.4969
- --------------------------------------------------------------------------------

PERFORMANCE 1

THE FUND MAY CHARGE A 2% FEE ON SHARES REDEEMED WITHIN SEVEN DAYS OF PURCHASE.

- ------------------------------------------------------------------------------------------
1-YEAR 3-YEAR INCEPTION (10/15/02)
- ------------------------------------------------------------------------------------------

Cumulative Total Return 2 +32.04% +148.26% +303.01%
- ------------------------------------------------------------------------------------------
Average Annual Total Return 3 +32.04% +35.40% +33.76%
- ------------------------------------------------------------------------------------------
Value of $10,000 Investment 4 $13,204 $24,826 $40,301
- ------------------------------------------------------------------------------------------
Avg. Ann. Total Return (6/30/07) 5 +22.00% +31.31% +33.80%
- ------------------------------------------------------------------------------------------
Total Annual Operating Expenses 6
- ------------------------------------------------------------------------------------------
Without Waiver 1.20%
- ------------------------------------------------------------------------------------------
With Waiver 0.95%
- ------------------------------------------------------------------------------------------

PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT FTINSTITUTIONAL.COM OR CALL 1-800/321-8563 FOR MOST
RECENT MONTH-END PERFORMANCE.

THE MANAGER AND ADMINISTRATOR HAVE CONTRACTUALLY AGREED TO LIMIT FUND EXPENSES
SO THAT TOTAL ANNUAL FUND OPERATING EXPENSES DO NOT EXCEED 0.95% (OTHER THAN
CERTAIN NON-ROUTINE EXPENSES) UNTIL 11/30/08.

6 | Annual Report

Performance Summary (CONTINUED)

TOTAL RETURN INDEX COMPARISON FOR HYPOTHETICAL $10,000 INVESTMENT 1

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

Franklin International S&P/Citigroup <$2 Billion Cap Range
CALENDAR MONTH Smaller Companies Growth Fund EPAC Index 7

Oct-02 $ 9,970 $ 9,956
Nov-02 $10,180 $10,312
Dec-02 $10,206 $10,235
Jan-03 $10,025 $10,086
Feb-03 $ 9,844 $10,066
Mar-03 $ 9,714 $10,004
Apr-03 $10,597 $10,833
May-03 $11,460 $11,743
Jun-03 $11,601 $12,301
Jul-03 $12,092 $12,701
Aug-03 $12,664 $13,507
Sep-03 $13,266 $14,276
Oct-03 $14,992 $15,259
Nov-03 $15,013 $15,245
Dec-03 $15,655 $16,179
Jan-04 $16,689 $16,856
Feb-04 $16,947 $17,341
Mar-04 $17,340 $18,250
Apr-04 $17,113 $17,660
May-04 $16,637 $17,418
Jun-04 $17,392 $18,227
Jul-04 $16,234 $17,468
Aug-04 $16,089 $17,643
Sep-04 $16,492 $18,082
Oct-04 $17,071 $18,688
Nov-04 $18,509 $20,120
Dec-04 $19,459 $21,102
Jan-05 $19,920 $21,575
Feb-05 $20,855 $22,483
Mar-05 $20,324 $22,094
Apr-05 $20,070 $21,599
May-05 $20,243 $21,579
Jun-05 $21,040 $22,124
Jul-05 $22,055 $22,992
Aug-05 $23,463 $23,687
Sep-05 $24,998 $24,799
Oct-05 $24,837 $24,314
Nov-05 $26,257 $25,165
Dec-05 $28,000 $27,015
Jan-06 $30,345 $28,703
Feb-06 $30,797 $28,384
Mar-06 $32,286 $29,550
Apr-06 $34,484 $30,920
May-06 $32,873 $29,248
Jun-06 $32,274 $28,615
Jul-06 $30,523 $28,038
Aug-06 $31,010 $28,863
Sep-06 $30,947 $29,071
Oct-06 $31,871 $30,052
Nov-06 $33,169 $31,315
Dec-06 $35,000 $32,369
Jan-07 $35,623 $32,852
Feb-07 $35,636 $33,584
Mar-07 $37,212 $34,666
Apr-07 $38,547 $36,084
May-07 $39,653 $36,700
Jun-07 $39,374 $36,800
Jul-07 $40,302 $37,228

AVERAGE ANNUAL TOTAL RETURN

- ----------------------------------------------------------
7/31/07
- ----------------------------------------------------------
1-Year +32.04%
- ----------------------------------------------------------
3-Year +35.40%
- ----------------------------------------------------------
Since Inception (10/15/02) +33.76%
- ----------------------------------------------------------

ENDNOTES

THE FUND'S INVESTMENTS IN SMALLER COMPANY STOCKS INVOLVE CERTAIN RISKS AS SUCH
STOCKS HAVE EXHIBITED GREATER PRICE VOLATILITY THAN LARGER COMPANY STOCKS,
PARTICULARLY OVER THE SHORT TERM. THE FUND'S INVESTMENTS IN STOCKS OF FOREIGN
COMPANIES INVOLVE SPECIAL RISKS, INCLUDING CURRENCY FLUCTUATIONS AND ECONOMIC AS
WELL AS POLITICAL UNCERTAINTY. EMERGING MARKETS INVOLVE HEIGHTENED RISKS RELATED
TO THE SAME FACTORS IN ADDITION TO THEIR RELATIVELY SMALL SIZE AND LESSER
LIQUIDITY. BY HAVING SIGNIFICANT INVESTMENTS IN PARTICULAR SECTORS SUCH AS
TECHNOLOGY, OR IN ONE OR MORE COUNTRIES, FROM TIME TO TIME, THE FUND CARRIES
GREATER RISK OF ADVERSE DEVELOPMENT IN A SECTOR OR COUNTRY THAN A FUND THAT
ALWAYS INVESTS IN A WIDE VARIETY OF SECTORS OR COUNTRIES. THE FUND'S PROSPECTUS
ALSO INCLUDES A DESCRIPTION OF THE MAIN INVESTMENT RISKS.

1. The manager and administrator have contractually agreed to limit Fund
expenses so that total annual Fund operating expenses do not exceed 0.95% (other
than certain non-routine expenses) until 11/30/08. If the manager and
administrator had not taken this action, the Fund's total returns would have
been lower.

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

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

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

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

6. Figures are as stated in the Fund's prospectus current as of the date of this
report.

7. Source: Standard & Poor's Micropal. The S&P/Citigroup <$2 Billion Cap Range
EPAC Index is a float-adjusted, market capitalization-weighted index designed to
measure performance of European and Asian equity securities with market
capitalizations of less than $2 billion. The index is rebalanced monthly by
market capitalization.

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, if
applicable, and redemption fees; and

ACTUAL FUND EXPENSES

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

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

1. Divide your account value by $1,000.
IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."
IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

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

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

8 | Annual Report

Your Fund's Expenses (CONTINUED)

Actual $1,000 $1,131,30 $5.02
- -------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,020.08 $4.76
- -------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio, net of expense waivers, of
0.95%, multiplied by the average account value over the period, multiplied by
181/365 to reflect the one-half year period.

Annual Report | 9

Franklin Global Trust

FINANCIAL HIGHLIGHTS

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

------------------------------------------------------
YEAR ENDED JULY 31,
2007 2006 2005 2004 2003 e
------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the year)
Net asset value, beginning of year .............................. $ 24.45 $ 19.11 $ 15.70 $ 12.06 $ 10.00
------------------------------------------------------
Income from investment operations a:
Net investment income b ...................................... 0.17 0.23 0.16 0.02 0.07
Net realized and unrealized gains (losses) ................... 7.58 6.94 5.12 4.07 2.02
------------------------------------------------------
Total from investment operations ................................ 7.75 7.17 5.28 4.09 2.09
------------------------------------------------------
Less distributions from:
Net investment income ........................................ (0.09) (0.22) (0.03) (0.08) (0.03)
Net realized gains ........................................... (0.41) (1.61) (1.84) (0.37) --
------------------------------------------------------
Total distributions ............................................. (0.50) (1.83) (1.87) (0.45) (0.03)
------------------------------------------------------
Net asset value, end of year .................................... $ 31.70 $ 24.45 $ 19.11 $ 15.70 $ 12.06
======================================================

Total return c .................................................. 32.04% 38.39% 35.86% 34.25% 20.92%

RATIOS TO AVERAGE NET ASSETS
Expenses before waiver and payments by affiliates and
expense reduction ............................................ 1.26% 1.21% 1.48% 1.53% 5.06% f
Expenses net of waiver and payments by affiliates ............... 0.96% 0.96% 0.95% 0.95% 0.75% f
Expenses net of waiver and payments by affiliates and
expense reduction ............................................ 0.95% 0.95% 0.95% d 0.95% d 0.75% f
Net investment income ........................................... 0.63% 0.93% 0.95% 0.13% 0.65% f

SUPPLEMENTAL DATA
Net assets, end of year (000's) ................................. $43,518 $55,646 $16,382 $ 8,653 $ 2,411
Portfolio turnover rate ......................................... 51.78% 78.53% 113.27% 108.64% 126.43%

b Based on average daily shares outstanding.

c Total return is not annualized for periods less than one year.

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

e For the period October 15, 2002 (commencement of operations) to July 31, 2003.

f Not annualized.

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

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007

- ------------------------------------------------------------------------------------------------------------------------------------
FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND COUNTRY SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------------------------

COMMON STOCKS 93.5%
AUTO COMPONENTS 1.6%
NIPPON SEIKI Co. Ltd. ....................................................... Japan 26,000 $ 719,147
------------
BIOTECHNOLOGY 2.1%
Genus PLC ................................................................... United Kingdom 68,979 899,618
------------
BUILDING PRODUCTS 3.0%
Kingspan Group PLC .......................................................... Ireland 25,990 627,625
Pfleiderer AG ............................................................... Germany 24,545 663,590
------------
1,291,215
------------
CAPITAL MARKETS 3.6%
Azimut Holding SpA .......................................................... Italy 35,400 594,773
a RHJ International ........................................................... Belgium 48,400 982,769
------------
1,577,542
------------
CHEMICALS 0.8%
Century Sunshine Ecological Technology Holdings Ltd. ........................ Hong Kong 2,542,593 369,920
------------
COMMERCIAL SERVICES & SUPPLIES 3.2%
Homeserve PLC ............................................................... United Kingdom 28,000 996,548
PARK24 Co. Ltd. ............................................................. Japan 37,300 378,395
------------
1,374,943
------------
COMMUNICATIONS EQUIPMENT 3.2%
EVS Broadcast Equipment SA .................................................. Belgium 13,980 1,376,875
------------
CONSTRUCTION & ENGINEERING 7.0%
Arcadis NV .................................................................. Netherlands 10,370 965,209
CHIYODA Corp. ............................................................... Japan 19,000 378,927
Koninklijke BAM Groep NV .................................................... Netherlands 29,240 846,185
Samsung Engineering Co. Ltd. ................................................ South Korea 7,345 870,885
------------
3,061,206
------------
DIVERSIFIED CONSUMER SERVICES 7.1%
Dignity PLC ................................................................. United Kingdom 42,920 608,585
MegaStudy Co. Ltd. .......................................................... South Korea 6,023 1,264,483
a Tele Atlas NV ............................................................... Netherlands 42,800 1,209,854
------------
3,082,922
------------
ELECTRICAL EQUIPMENT 1.2%
Solarworld AG ............................................................... Germany 10,688 514,741
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.0%
a Orbotech Ltd. ............................................................... Israel 20,400 439,620
------------
ENERGY EQUIPMENT & SERVICES 1.8%
SBM Offshore NV ............................................................. Netherlands 19,010 781,547
------------
FOOD & STAPLES RETAILING 0.9%
SEIJO Corp. ................................................................. Japan 19,200 416,107
------------

Annual Report | 11

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

COMMON STOCKS (CONTINUED)
FOOD PRODUCTS 6.7%
IAWS Group PLC .............................................................. Ireland 22,800 $ 477,283
Ldc SA ...................................................................... France 4,600 601,077
UNICHARM PETCARE Corp. ...................................................... Japan 18,700 763,233
Vitasoy International Holdings Ltd. ......................................... Hong Kong 2,321,600 1,055,687
------------
2,897,280
------------
HEALTH CARE EQUIPMENT & SUPPLIES 5.3%
a Gyrus Group PLC ............................................................. United Kingdom 104,090 912,423
Omega Pharma SA ............................................................. Belgium 10,230 877,384
Straumann Holding AG ........................................................ Switzerland 1,900 525,877
------------
2,315,684
------------
HEALTH CARE PROVIDERS & SERVICES 3.9%
Amplifon SpA ................................................................ Italy 82,408 749,228
Parkway Holdings Ltd. ....................................................... Singapore 377,000 969,791
------------
1,719,019
------------
HOTELS RESTAURANTS & LEISURE 4.2%
Kuoni Reisen Holding AG, B .................................................. Switzerland 1,290 763,322
Unibet Group PLC ............................................................ United Kingdom 28,700 1,047,741
------------
1,811,063
------------
INSURANCE 3.1%
April Group ................................................................. France 11,450 661,785
a Lancashire Holdings Ltd. .................................................... United Kingdom 100,860 688,437
------------
1,350,222
------------
LEISURE EQUIPMENT & PRODUCTS 2.8%
Jumbo SA .................................................................... Greece 12,470 415,172
Vitec Group PLC ............................................................. United Kingdom 64,500 794,688
------------
1,209,860
------------
LIFE SCIENCES TOOLS & SERVICES 1.4%
Eurofins Scientific ......................................................... France 6,480 615,592
------------
MACHINERY 5.4%
Andritz AG .................................................................. Austria 7,480 518,359
THE JAPAN STEEL WORKS Ltd. .................................................. Japan 56,700 914,200
OSG Corp. ................................................................... Japan 27,000 382,511
Toshiba Machine Co. Ltd. .................................................... Japan 56,000 516,625
------------
2,331,695
------------
MEDIA 6.4%
ASATSU-DK Inc. .............................................................. Japan 21,500 676,266
CTS Eventim AG .............................................................. Germany 13,930 554,427
HAKUHODO DY HOLDINGS Inc. ................................................... Japan 9,270 601,141
Modern Times Group MTG AB ................................................... Sweden 7,400 453,016
a Sky Perfect JSAT Corp. ...................................................... Japan 1,200 520,133
------------
2,804,983
------------

12 | Annual Report

Franklin Global Trust

STATEMENT OF INVESTMENTS, JULY 31, 2007 (CONTINUED)

COMMON STOCKS (CONTINUED)
METALS & MINING 3.7%
Sumitomo Titanium Corp. ..................................................... Japan 6,400 $ 560,206
Tubacex SA .................................................................. Spain 112,854 1,046,892
------------
1,607,098
------------
OFFICE ELECTRONICS 2.0%
Neopost SA .................................................................. France 5,934 857,703
------------
PERSONAL PRODUCTS 1.1%
Milbon Co. Ltd. ............................................................. Japan 16,980 481,113
------------
PHARMACEUTICALS 1.8%
a Flamel Technologies SA, ADR ................................................. France 46,100 781,395
------------
ROAD & RAIL 4.2%
DSV AS, B ................................................................... Denmark 41,700 946,917
Helphire Group PLC .......................................................... United Kingdom 115,800 879,805
------------
1,826,722
------------
TEXTILES, APPAREL & LUXURY GOODS 5.0%
Koninklijke Ten Cate NV ..................................................... Netherlands 19,950 823,696
Peace Mark (Holdings) Ltd. .................................................. Hong Kong 672,000 1,045,436
Prime Success International Group Ltd. ...................................... Hong Kong 370,100 306,931
------------
2,176,063
------------
TOTAL COMMON STOCKS (COST $28,250,130) ...................................... 40,690,895
------------

----------------
PRINCIPAL AMOUNT
----------------

SHORT TERM INVESTMENT (COST $2,460,000) 5.7%
TIME DEPOSIT 5.7%
Paribas Corp., 5.34%, 8/01/07 ............................................... United States $2,460,000 2,460,000
------------
TOTAL INVESTMENTS (COST $30,710,130) 99.2% .................................. 43,150,895
OTHER ASSETS, LESS LIABILITIES 0.8% ......................................... 367,172
------------
NET ASSETS 100.0% ........................................................... $43,518,067
============

SELECTED PORTFOLIO ABBREVIATIONS

ADR - American Depository Receipt

a Non-income producing for the twelve months ended July 31, 2007.

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

Franklin Global Trust

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
July 31, 2007

-------------
FRANKLIN
INTERNATIONAL
SMALLER
COMPANIES
GROWTH FUND
-------------

Assets:
Investments in securities:
Cost ..................................................................... $ 30,710,130
=============
Value .................................................................... $ 43,150,895
Cash ........................................................................ 2,875
Foreign currency, at value (cost $29,457) ................................... 29,208
Receivables:
Investment securities sold ............................................... 749,801
Dividends ................................................................ 24,088
-------------
Total assets .......................................................... 43,956,867
-------------
Liabilities:
Payables:
Investment securities purchased .......................................... 385,158
Affiliates ............................................................... 32,080
Accrued expenses and other liabilities ...................................... 21,562
-------------
Total liabilities ..................................................... 438,800
-------------
Net assets, at value ............................................... $ 43,518,067
=============
Net assets consist of:
Paid-in capital ............................................................. $ 23,911,433
Undistributed net investment income ......................................... 125,253
Net unrealized appreciation (depreciation) .................................. 12,443,592
Accumulated net realized gain (loss) ........................................ 7,037,789
-------------
Net assets, at value ............................................... $ 43,518,067
=============
Shares outstanding ............................................................. 1,372,902
-------------
Net asset value and maximum offering price per share a ......................... $ 31.70
=============

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

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the year ended July 31, 2007

--------------
FRANKLIN
INTERNATIONAL
SMALLER
COMPANIES
GROWTH FUND
--------------

Investment income:
Dividends (net of foreign taxes of $42,769) ................................. $ 509,208
Interest .................................................................... 121,272
--------------
Total investment income ............................................... 630,480
--------------
Expenses:
Management fees (Note 3a) ................................................... 300,456
Administrative fees (Note 3b) ............................................... 80,121
Transfer agent fees (Note 3c) ............................................... 2,569
Custodian fees (Note 4) ..................................................... 14,408
Reports to shareholders ..................................................... 15,335
Registration and filing fees ................................................ 20,170
Professional fees ........................................................... 55,953
Trustees' fees and expenses ................................................. 3,398
Other ....................................................................... 10,415
--------------
Total expenses ........................................................ 502,825
Expense reductions (Note 4) ........................................... (4,328)
Expenses waived/paid by affiliates (Note 3d) .......................... (118,374)
--------------
Net expenses ....................................................... 380,123
--------------
Net investment income ........................................... 250,357
--------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments .............................................................. 7,519,549
Foreign currency transactions ............................................ (14,966)
--------------
Net realized gain (loss) ........................................ 7,504,583
--------------
Net change in unrealized appreciation (depreciation) on:
Investments .............................................................. 3,028,883
Translation of assets and liabilities denominated in foreign currencies .. 7,566
--------------
Net change in unrealized appreciation (depreciation) ............ 3,036,449
--------------
Net realized and unrealized gain (loss) ........................................ 10,541,032
--------------
Net increase (decrease) in net assets resulting from operations ................ $ 10,791,389
==============

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

Franklin Global Trust

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

----------------------------
FRANKLIN INTERNATIONAL
SMALLER COMPANIES
GROWTH FUND
----------------------------
YEAR ENDED JULY 31,
2007 2006
----------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ............................................................... $ 250,357 $ 299,182
Net realized gain (loss) from investments and foreign currency transactions ......... 7,504,583 1,486,803
Net change in unrealized appreciation (depreciation) on investments and translation
of assets and liabilities denominated in foreign currencies ...................... 3,036,449 5,987,070
-----------------------------
Net increase (decrease) in net assets resulting from operations ............... 10,791,389 7,773,055
-----------------------------
Distributions to shareholders from:
Net investment income ............................................................... (128,792) (372,394)
Net realized gains .................................................................. (554,205) (2,216,789)
-----------------------------
Total distributions to shareholders .................................................... (682,997) (2,589,183)
-----------------------------
Capital share transactions (Note 2) .................................................... (22,235,847) 34,079,285
-----------------------------
Net increase (decrease) in net assets ......................................... (12,127,455) 39,263,157
Net assets:
Beginning of year ...................................................................... 55,645,522 16,382,365
-----------------------------
End of year ............................................................................ $ 43,518,067 $ 55,645,522
=============================
Undistributed net investment income included in net assets:
End of year ............................................................................ $ 125,253 $ 35,212
=============================

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

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Global Trust (the Trust) is registered under the Investment Company Act
of 1940, as amended, (the 1940 Act) as an open-end investment company,
consisting of eight separate funds. The Franklin International Smaller Companies
Growth Fund (the Fund) included in this report is diversified. The financial
statements of the remaining funds in the Trust are presented separately. The
Fund was closed to new investors between July 14, 2006 and August 15, 2006.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

Annual Report | 17

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. FOREIGN CURRENCY TRANSLATION

C. FOREIGN CURRENCY CONTRACTS

D. INCOME TAXES

18 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. INCOME TAXES (CONTINUED)

E. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

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

F. ACCOUNTING ESTIMATES

G. REDEMPTION FEES

A short term trading redemption fee will be imposed, with some exceptions, on
any fund shares that are redeemed or exchanged within seven calendar days
following their purchase date. The redemption fee is 2% of the amount redeemed.
Such fees are retained by the Fund and accounted for as an addition to paid-in
capital. There were no redemption fees for the year.

Annual Report | 19

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

H. GUARANTEES AND INDEMNIFICATIONS

2. SHARES OF BENEFICIAL INTEREST

At July 31, 2007, there were an unlimited number of shares authorized (no par
value). Transactions in the Fund's shares were as follows:

-------------------------------------------------------
YEAR ENDED JULY 31,
2007 2006
-------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------

Shares sold .................... 259,373 $ 7,509,459 1,788,313 $ 43,695,513
Shares issued in reinvestment
of distributions ............ 15,896 429,179 67,675 1,548,419
Shares redeemed ................ (1,178,446) (30,174,485) (437,140) (11,164,647)
-------------------------------------------------------
Net increase (decrease) ........ (903,177) $ (22,235,847) 1,418,848 $ 34,079,285
=======================================================

3. TRANSACTIONS WITH AFFILIATES

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

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

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

A. MANAGEMENT FEES

The Fund pays an investment management fee to Advisers of 0.75% per year of the
average daily net assets of the Fund.

20 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

A. MANAGEMENT FEES (CONTINUED)

Under a subadvisory agreement, FT Institutional, an affiliate of Advisers,
provides subadvisory services to the Fund and receives from Advisers fees based
on the average daily net assets of the Fund.

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services of 0.20% per year of the
average daily net assets of the Fund.

C. TRANSFER AGENT FEES

For the year ended July 31, 2007, the Fund paid transfer agent fees of $2,569,
of which $520 was retained by Investor Services.

D. WAIVER AND EXPENSE REIMBURSEMENTS

FT Services and Advisers have agreed in advance to waive a portion of their
respective fees and to assume payment of other expenses through November 30,
2008. Total expenses waived are not subject to reimbursement by the Fund
subsequent to the Fund's fiscal year end. After November 30, 2008, FT Services
and Advisers may discontinue this waiver at any time upon notice to the Fund's
Board of Trustees.

E. OTHER AFFILIATED TRANSACTIONS

At July 31, 2007, Advisers or an affiliate owned 22.69% of the Fund's
outstanding shares.

4. EXPENSE OFFSET ARRANGEMENT

5. INCOME TAXES

Annual Report | 21

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

5. INCOME TAXES (CONTINUED)

The tax character of distributions paid during the years ended July 31, 2007 and
July 31, 2006, was as follows:

-----------------------
2007 2006
-----------------------
Distributions paid from:
Ordinary income .......................... $ 281,638 $ 1,315,171
Long term capital gain ................... 401,359 1,274,012
-----------------------
$ 682,997 $ 2,589,183
=======================

At July 31, 2007, the cost of investments, net unrealized appreciation
(depreciation), undistributed ordinary income and undistributed long term
capital gains for income tax purposes were as follows:

Cost of investments ..................................... $ 30,729,441
============

Unrealized appreciation ................................. $ 13,332,962
Unrealized depreciation ................................. (911,508)
------------
Net unrealized appreciation (depreciation) .............. $ 12,421,454
============

Undistributed ordinary income ........................... $ 924,139
Undistributed long term capital gains ................... $ 6,268,009
------------
Distributable earnings .................................. $ 7,192,148
============

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments 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.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
year ended July 31, 2007, aggregated $19,379,720 and $23,414,111, respectively.

22 | Annual Report

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

7. CONCENTRATION OF RISK

8. REGULATORY AND LITIGATION MATTERS

Annual Report | 23

Franklin Global Trust

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

9. NEW ACCOUNTING PRONOUNCEMENTS

24 | Annual Report

Franklin Global Trust

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF FRANKLIN GLOBAL TRUST

In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statement of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Franklin International Smaller
Companies Growth Fund (one of the funds constituting the Franklin Global Trust,
hereafter referred to as the "Fund") at July 31, 2007, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for 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 Fund's management. Our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at July 31, 2007 by correspondence with the custodian
and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
September 17, 2007

Annual Report | 25

Franklin Global Trust

TAX DESIGNATION (UNAUDITED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

Under Section 852(b)(3)(C) of the Internal Revenue Code (Code), the Fund
designates the maximum amount allowable but no less than $6,554,765 as a long
term capital gain dividend for the fiscal year ended July 31, 2007.

Under Section 871(k)(2)(C) of the Code, the Fund designates the maximum amount
allowable but no less than $949,381 as a short term capital gain dividend for
purposes of the tax imposed under Section 871(a)(1)(A) of the Code for the
fiscal year ended July 31, 2007.

Under Section 854(b)(2) of the Code, the Fund designates the maximum amount
allowable but no less than $448,875 as qualified dividends for purposes of the
maximum rate under Section 1(h)(11) of the Code for the fiscal year ended July
31, 2007. In January 2008, shareholders will receive Form 1099-DIV which will
include their share of qualified dividends distributed during the calendar year
2007. 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, 2007, more than 50% of the 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 as allowed under Section 853 of the Code. This election will
allow shareholders of record in December 2007, 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.

26 | Annual Report

Franklin Global Trust

Franklin International Smaller Companies Growth Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED)

A Special Meeting of Shareholders of the Trust was held at the Trust's offices,
One Franklin Parkway, San Mateo, California on March 21, 2007. The purpose of
the meeting was to elect Trustees of the Trust and to vote on the following
Proposals and Sub-Proposals: to approve an Amended and Restated Agreement and
Declaration of Trust; and to approve amendments to certain of the Franklin
International Smaller Companies Growth Fund's (the "Fund") fundamental
investment restrictions (including six (6) Sub-Proposals). At the meeting, the
following persons were elected by the shareholders to serve as Independent
Trustees of the Trust: Harris J. Ashton, Robert F. Carlson, Sam Ginn, Edith E.
Holiday, Frank W. T. LaHaye, Frank A. Olson, Larry D. Thompson, and John B.
Wilson. Charles B. Johnson and Gregory E. Johnson were elected by the
shareholders to serve as Interested Trustees. Shareholders also approved the
Amended and Restated Agreement and Declaration of Trust and amendments to
certain of the Fund's fundamental investment restrictions (including six (6)
Sub-Proposals). No other business was transacted at the meeting.

Proposal 1. The Election of Trustees:

Harris J. Ashton ............. 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Robert F. Carlson ............ 31,255,986.306 83.526% 99.951% 15,358.451 0.041% 0.049%
Sam Ginn ..................... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Edith E. Holiday ............. 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Frank W. T. LaHaye ........... 31,256,072.485 83.526% 99.951% 15,272.272 0.041% 0.049%
Frank A. Olson ............... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Larry D. Thompson ............ 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
John B. Wilson ............... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Charles B. Johnson ........... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%
Gregory E. Johnson ........... 31,256,095.288 83.526% 99.951% 15,249.469 0.041% 0.049%

Proposal 2. To approve an Amended and Restated Agreement and Declaration of
Trust:

- --------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................. 29,754,630.388 79.514% 95.151%
Against ............................. 5,747.015 0.015% 0.018%
Abstain ............................. 7,315.354 0.020% 0.023%
Broker non-votes .................... 1,503,652.000 4.018% 4.808%
- --------------------------------------------------------------------------------
TOTAL ............................... 31,271,344.757 83.567% 100.000%

Annual Report | 27

Franklin Global Trust

Franklin International Smaller Companies Growth Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Fund's fundamental
investment restrictions (includes six (6) Sub-Proposals):

(a) To amend the Fund's fundamental investment restriction regarding borrowing:

- --------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................. 1,309,023.343 94.556% 97.503%
Against ............................. -- -- --
Abstain ............................. -- -- --
Broker Non-Votes .................... 33,521.000 2.421% 2.497%
- --------------------------------------------------------------------------------
TOTAL ............................... 1,342,544.343 96.977% 100.000%

(b) To amend the Fund's fundamental investment restriction regarding lending:

- --------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................. 1,309,023.343 94.556% 97.503%
Against ............................. -- -- --
Abstain ............................. -- -- --
Broker Non-Votes .................... 33,521.000 2.421% 2.497%
- --------------------------------------------------------------------------------
TOTAL ............................... 1,342,544.343 96.977% 100.000%

(d) To amend the Fund's fundamental investment restriction regarding investments
in commodities:

- --------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................. 1,309,023.343 94.556% 97.503%
Against ............................. -- -- --
Abstain ............................. -- -- --
Broker Non-Votes .................... 33,521.000 2.421% 2.497%
- --------------------------------------------------------------------------------
TOTAL ............................... 1,342,544.343 96.977% 100.000%

28 | Annual Report

Franklin Global Trust

Franklin International Smaller Companies Growth Fund

MEETING OF SHAREHOLDERS, MARCH 21, 2007 (UNAUDITED) (CONTINUED)

Proposal 3. To approve amendments to certain of the Fund's fundamental
investment restrictions (includes six (6) Sub-Proposals): (CONTINUED)

(e) To amend the Fund's fundamental investment restriction regarding issuing
senior securities:

- --------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................. 1,309,023.343 94.556% 97.503%
Against ............................. -- -- --
Abstain ............................. -- -- --
Broker Non-Votes .................... 33,521.000 2.421% 2.497%
- --------------------------------------------------------------------------------
TOTAL ............................... 1,342,544.343 96.977% 100.000%

(f) To amend the Fund's fundamental investment restriction regarding
diversification of investments:

- --------------------------------------------------------------------------------
% OF % OF
OUTSTANDING VOTED
SHARES VOTED SHARES SHARES
- --------------------------------------------------------------------------------
For ................................. 1,309,023.343 94.556% 97.503%
Against ............................. -- -- --
Abstain ............................. -- -- --
Broker Non-Votes .................... 33,521.000 2.421% 2.497%
- --------------------------------------------------------------------------------
TOTAL ............................... 1,342,544.343 96.977% 100.000%

Annual Report | 29

Franklin Global Trust

BOARD MEMBERS AND OFFICERS

INDEPENDENT BOARD MEMBERS

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

HARRIS J. ASHTON (1932) Trustee Since 2000 140 Director, Bar-S Foods (meat
One Franklin Parkway packing company).
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Vice President, senior member and past President, Board of Administration, California Public Employees Retirement Systems (CALPERS);
and FORMERLY, member and Chairman of the Board, Sutter Community Hospitals; member, Corporate Board, Blue Shield of California; and
Chief Counsel, California Department of Transportation.
- ------------------------------------------------------------------------------------------------------------------------------------
SAM GINN (1937) Trustee Since March 2007 121 Director, Chevron Corporation
One Franklin Parkway (global energy company) and ICO
San Mateo, CA 94403-1906 Global Communications (Holdings)
Limited (satellite company).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Private investor; and FORMERLY, Chairman of the Board, Vodafone AirTouch (wireless company), PLC; Chairman of the Board and Chief
Executive Officer, AirTouch Communications (cellular communications) (1993-1998) and Pacific Telesis Groups (telephone holding
company) (1988-1994).
- ------------------------------------------------------------------------------------------------------------------------------------
EDITH E. HOLIDAY (1952) Trustee Since 2000 140 Director, Hess Corporation
One Franklin Parkway (formerly, Amerada Hess
San Mateo, CA 94403-1906 Corporation) (exploration and
refining of oil and gas), H.J.
Heinz Company (processed foods
and allied products), RTI
International Metals, Inc.
(manufacture and distribution
of titanium), Canadian National
Railway (railroad) and White
Mountains Insurance Group, Ltd.
(holding company).

30 | Annual Report

FRANK W.T. LAHAYE (1929) Trustee Since 2000 121 Director, Center for Creative
One Franklin Parkway Land Recycling (brownfield
San Mateo, CA 94403-1906 redevelopment).

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
General Partner, Las Olas L.P. (Asset Management); and FORMERLY, Chairman, Peregrine Venture Management Company (venture capital).
- ------------------------------------------------------------------------------------------------------------------------------------
FRANK A. OLSON (1932) Trustee Since 2005 140 Director, Hess Corporation
One Franklin Parkway (formerly, Amerada Hess
San Mateo, CA 94403-1906 Corporation) (exploration and
refining of oil and gas) and
Sentient Jet (private jet
service).

INTERESTED BOARD MEMBERS AND OFFICERS

**CHARLES B. JOHNSON (1933) Trustee and Since 2000 140 None
One Franklin Parkway Chairman of
San Mateo, CA 94403-1906 the Board

Annual Report | 31

** GREGORY E. JOHNSON (1961) Trustee Since March 2007 91 None
One Franklin Parkway
San Mateo, CA 94403-1906

PRINCIPAL OCCUPATION DURING PAST 5 YEARS:
Director, President and Chief Executive Officer, Franklin Resources, Inc.; President, Templeton Worldwide, Inc.; Director, Templeton
Asset Management Ltd.; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin
Resources, Inc. and of 33 of the investment companies in Franklin Templeton Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
JAMES M. DAVIS (1952) Chief Chief Compliance Not Applicable Not Applicable
One Franklin Parkway Compliance Officer since 2004
San Mateo, CA 94403-1906 Officer and and Vice
Vice President President - AML
- AML Compliance since
Compliance 2006

32 | Annual Report

DAVID P. GOSS (1947) Vice President Since 2000 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

Annual Report | 33

CRAIG S. TYLE (1960) Vice President Since 2005 Not Applicable Not Applicable
One Franklin Parkway
San Mateo, CA 94403-1906

Note 1: Charles B. Johnson and Rupert H. Johnson, Jr. are brothers and the
father and uncle, respectively, of Gregory E. Johnson.

Note 2: Officer information is current as of the date of this report. It is
possible that after this date, information about officers may change.

Note 3: Prior to July 31, 2007, Harmon E. Burns, S. Joseph Fortunato, Rupert H.
Johnson, Jr. and Gordon S. Macklin ceased to be trustees of the Trust.

34 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT

NATURE, EXTENT AND QUALITY OF SERVICES. The Board was satisfied with the nature
and quality of the overall services provided by the Manager and its affiliates
to the Fund and its shareholders. In addition to investment performance and
expenses discussed later, the Board's opinion was based, in part, upon periodic
reports furnished them showing that the investment policies and restrictions for
the Fund were consistently complied with as well as other reports periodically
furnished the Board covering matters such as the compliance of portfolio
managers and other

Annual Report | 35

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

management personnel with the code of ethics adopted throughout the Franklin
Templeton fund complex, the adherence to fair value pricing procedures
established by the Board, and the accuracy of net asset value calculations. The
Board also noted the extent of benefits provided Fund shareholders from being
part of the Franklin Templeton family of funds, including the right to exchange
investments between the same class of funds without a sales charge, the ability
to reinvest Fund dividends into other funds and the right to combine holdings in
other funds to obtain a reduced sales charge. Favorable consideration was given
to management's continuous efforts and expenditures in establishing back-up
systems and recovery procedures to function in the event of a natural disaster,
it being noted that such systems and procedures had functioned smoothly during
the Florida hurricanes and blackouts experienced in recent years. Among other
factors taken into account by the Board were the Manager's best execution
trading policies, including a favorable report by an independent portfolio
trading analytical firm. Consideration was also given to the experience of the
Fund's portfolio management team, the number of accounts managed and general
method of compensation. In this latter respect, the Board noted that a primary
factor in management's determination of a portfolio manager's bonus compensation
was the relative investment performance of the funds he or she managed and that
a portion of such bonus was required to be invested in a predesignated list of
funds within such person's fund management area so as to be aligned with the
interests of Fund shareholders. The Board also took into account the quality of
transfer agent and shareholder services provided Fund shareholders by an
affiliate of the Manager, noting continuing expenditures by management to
increase and improve the scope of such services, periodic favorable reports on
such service conducted by third parties, the high industry ranking given to the
Franklin Templeton website, and the firsthand experience of individual Board
members who deal with the shareholder services department in their capacities as
shareholders in one or more of the various Franklin Templeton funds.

INVESTMENT PERFORMANCE. The Board placed significant emphasis on the investment
performance of the Fund in view of its importance to shareholders. While
consideration was given to performance reports and discussions with portfolio
managers at Board meetings throughout the year, particular attention in
assessing performance was given to the Lipper reports furnished for the
agreement renewals. The Lipper reports prepared for the Fund showed its
investment performance in comparison to a performance universe selected by
Lipper. Comparative performance for the Fund was shown for the one-year period
ended December 31, 2006, and for additional periods ended that date depending on
when the Fund commenced operations. Investment performance was shown on a total
return basis for the Fund. The following summarizes the performance results for
the Fund and the Board's view of such performance.

The performance universe for the Fund consisted of the Fund and all retail and
institutional international small/mid-cap growth funds as selected by Lipper.
The Fund has been in operation for four full years and the Lipper report showed
its total return for the one-year period to be in the

36 | Annual Report

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

second-lowest quintile of such performance universe, but on an annualized basis
since inception to be in the highest quintile of such universe. The Board was
satisfied with such performance, noting the Fund's 25% one-year return as set
forth in the Lipper report.

COMPARATIVE EXPENSES. Consideration was given to the management fee and total
expense ratios of the Fund compared with those of a group of funds selected by
Lipper as its appropriate Lipper expense group. Prior to making such
comparisons, the Board relied upon a survey showing that the scope of management
advisory services covered under a Fund's investment management agreement was
similar to those provided by fund managers to other mutual fund groups. In
reviewing comparative costs, emphasis was given to the Fund's management fee in
comparison with the contractual investment management fee that would have been
charged by other funds within its Lipper expense group assuming they were
similar in size to the Fund, as well as the actual total expenses of the Fund in
comparison with those of its Lipper expense group. The Lipper contractual
investment management fee analysis includes the advisory and administrative fees
directly charged to the Fund as being part of the management fee. Both the
contractual investment management fee rate and actual total expenses were in
either the least expensive or second least expensive quintiles of the Fund's
Lipper expense group. The Board was satisfied with these comparative expenses.

Annual Report | 37

Franklin Global Trust

SHAREHOLDER INFORMATION (CONTINUED)

FRANKLIN INTERNATIONAL SMALLER COMPANIES GROWTH FUND

BOARD REVIEW OF INVESTMENT MANAGEMENT AGREEMENT (CONTINUED)

the Manager's parent on an overall basis as compared to other publicly held
managers broken down to show profitability from management operations exclusive
of distribution expenses, as well as profitability including distribution
expenses. The Board also considered the extent to which the Manager and its
affiliates might derive ancillary benefits from fund operations, including
potential benefits resulting from allocation of fund brokerage and the use of
"soft" commission dollars to pay for research. Based upon its consideration of
all these factors, the Board determined that the level of profits realized by
the Manager and its affiliates from providing services to the Fund was not
excessive in view of the nature, quality and extent of services provided.

ECONOMIES OF SCALE. The Board also considered whether economies of scale are
realized by the Manager as the Fund grows larger and the extent to which this is
reflected in the level of management fees charged. While recognizing that any
precise determination is inherently subjective, the Board noted that based upon
the Fund profitability analysis, it appears that as some funds get larger, at
some point economies of scale do result in the Manager realizing a larger profit
margin on management services provided such a fund. The Board believed that no
economies of scale existed in the management of the Fund that has been in
operation for only four full years and benefited from partial fee waivers or
expense reimbursements.

PROXY VOTING POLICIES AND PROCEDURES

QUARTERLY STATEMENT OF INVESTMENTS

38 | Annual Report

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[LOGO](R)
FRANKLIN TEMPLETON
INSTITUTIONAL

FRANKLIN TEMPLETON INSTITUTIONAL

600 Fifth Avenue
New York, NY 10020

ANNUAL REPORT

FRANKLIN INTERNATIONAL
SMALLER COMPANIES GROWTH FUND

INVESTMENT MANAGER

Franklin Advisers, Inc.

DISTRIBUTOR

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

FRANKLIN TEMPLETON INSTITUTIONAL SERVICES

1-800/321-8563
ftinstitutional.com

681 A2007 09/07

ITEM 2. CODE OF ETHICS.

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

(d) N/A

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

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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

(2) The audit committee financial expert is John B. Wilson 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 $190,795 for the fiscal year ended July 31, 2007 and $185,900 for the
fiscal year ended July 31, 2006.

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

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

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

The aggregate 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 were $46,000 for the fiscal year ended
July 31, 2007 and $0 for the fiscal year ended July 31, 2006. The services for
which these fees were paid included tax compliance and advice.

(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 $0 for the fiscal year ended July 31, 2007 and
$187 for the fiscal year ended July 31, 2006. 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 $0 for the fiscal year ended July 31, 2007
and $176,017 for the fiscal year ended July 31, 2006. 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 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 $46,000 for the fiscal year ended July 31, 2007 and $176,204 for
the fiscal year ended July 31, 2006.

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

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

ITEM 6. SCHEDULE OF INVESTMENTS. N/A

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

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

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

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

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

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

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

ITEM 12. EXHIBITS.

(a) (1) Code of Ethics

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

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

SIGNATURES

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

FRANKLIN GLOBAL TRUST

By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date September 27, 2007

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

By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date September 27, 2007

By /S/GALEN G. VETTER
------------------
Galen G. Vetter
Chief Financial Officer
Date September 27, 2007