TDE Telephone and Data Systems Inc

Manager’s Discussion

During the six months under review, the Fund’s equity position outperformed
the equity benchmark, and the Fund’s fixed income component outperformed
the fixed income benchmark, in our view affirming the benefit of a dynamic
portfolio in times of market turmoil. The Fund’s equity and fixed income man-
agement teams met regularly to determine an allocation mix that reflected
where the teams found what they considered the most attractive opportunities.
Based on our recent analysis and given the increasingly attractive yield profile
and sustained low valuations of global equities, we kept the Fund’s asset allo-
cation target unchanged at approximately 65% equities and 35% fixed
income.

Equity

Our stock selection drove excess returns and we believe highlighted the
value of Templeton’s actively managed, bottom-up investment approach.
The Fund’s income mandate for stocks also proved beneficial, as high yielding
stocks outperformed the market during a period when investor sentiment
remained cautious and the long-term U.S. Treasury yield hit a historical low.
Defensive sectors led market performance in this environment, although as
the period progressed and global policymakers redoubled stimulus efforts,
the sectors with the greatest degree of interest rate and economic growth
sensitivity outperformed.

Fund outperformance was primarily attributable to the Fund’s consumer
discretionary, information technology and industrials stocks. ² In the predomi-
nantly risk-averse market, the Fund’s detractive above-benchmark exposures
to these traditionally cyclical sectors were outweighed by the outperformance
of stock holdings within each sector. Consumer discretionary stocks were
particularly beneficial, driven by automotive, media, retailing and apparel
companies. U.S. cable provider Comcast produced a double-digit return and
reported strong earnings as the number of phone and Internet customers
grew and video customer losses abated. Having completed major technology-
focused infrastructure investments over the past several years, Comcast
continued to gain market share and generate what we viewed as tremendous
free cash flow, which could be used to raise dividend payments and buy back
stock because its investment demands are low. In addition, do-it-yourself
U.S. retailer Home Depot was rewarded by investors for enhanced profitabil-
ity from operational improvements. Optimism about a possible U.S. housing
resurgence also helped Home Depot.

2. The consumer discretionary sector comprises automobiles; distributors; hotels, restaurants and leisure; household
durables; media; multiline retail; specialty retail; and textiles, apparel and luxury goods in the SOI. The industrials sec-
tor comprises air freight and logistics, electrical equipment, industrial conglomerates, machinery, professional services
and trading companies and distributors in the SOI. The information technology sector comprises communications equip-
ment, computers and peripherals, IT services, semiconductors and semiconductor equipment and software in the SOI.

6 | Semiannual Report

Economic uncertainty also affected information technology stocks in recent quarters, most notably in the hardware space, where PC demand has been weak as businesses retrenched and consumers gravitated toward new tablet and smartphone devices. However, the Fund successfully navigated these challenges during the review period, benefiting from modest allocations in the weak hardware and semiconductor industries, and an overweighted position in the more resilient software industry. Accenture and Sage Group ³ benefited from the deployment of new software and systems by global, cash-rich companies that faced the question of how to drive growth and productivity in their businesses.

Economic uncertainty and the slowdown in manufacturing and gross domestic product growth in most regions of the world affected decision making. Corporations were reluctant to invest in new capacity, and investors shunned industrial companies. Investor concerns about near-term headwinds caused them to sell shares of industrial firms with diversified, disciplined global businesses exposed to areas where under-investment could eventually drive a profitable growth cycle. Although the sector weighed on benchmark performance, our stock positions contributed to relative results. Hong Kong-based infrastructure conglomerate Hutchison Whampoa beat profit estimates due to strong results in its European telecommunications, U.K. utilities and Chinese retail businesses. Japanese trading firm Itochu delivered solid results from non-resource businesses that offset weakness in its iron-ore business. In general, metals and mining firms were volatile as commodity prices fell due to concerns about China’s demand slowdown, and then rebounded rapidly following news of monetary stimulus. Our underweighted allocation to the poorly performing industry supported relative performance.

Not surprisingly, defensive consumer staples stocks remained popular with cautious investors. ⁴ We found the sector somewhat troublesome. We underweighted food and personal product manufacturers trading at peak valuations as a result of investors perceiving them as both defensive and pro-cyclical emerging market plays. On the other hand, food retailers, which appeared cheap, struggled to redefine their model amid increased fragmentation and the dual threat and opportunity of online retailing. Consequently, our sector underweighting and stock selection hurt performance. However, among defensive sectors, we found what we considered to be better opportunities in telecommunication services, where valuations did not reflect to us the relative lack of inelasticity of mobile service, the growing demands of data, and emerging market underpenetration, which sustained high free cash flow generation and facilitated high single-digit dividend yields in many cases. ⁵ Global mobile

3. No longer held at period-end.

4. The consumer staples sector comprises food and staples retailing and household products in the SOI.

5. The telecommunication services sector comprises diversified telecommunication services and wireless telecommunication services in the SOI.

Semiannual Report | 7

player Vodafone Group and incumbent Singapore Telecommunications, with business in Thailand, India and throughout Asia, represented two companies that contributed to Fund returns.

Defensive and cyclical characteristics influenced regional allocations as well. To us, Europe continued to offer dynamic opportunities, given the attractive valuations and diversified revenue streams of regional companies. In the past three decades, European stocks rarely were cheaper than their U.S. counterparts. Although concerns about the region’s economic growth, fiscal burden and political cohesion continued to pressure stocks, most large European companies conduct business all over the world, relying marginally on domestic demand. The majority of corporate earnings in the European Monetary Union came from outside of Europe. Despite this reality, sentiment seemed to drive returns. Thus, policy progress in the region could considerably support European stocks with heavily depressed valuations, and fundamentals could drive longer term value creation. Asia felt the brunt of China’s slowing growth, which investors interpreted as the end of an era rather than a normalization to sustainable longer term growth. Price-to-forward earnings ratios of Asian equities relative to their global counterparts stood at a seven-year low at the end of the period, revealing some interesting possibilities that we continued to explore. Economic resilience in the U.S. left it looking expensive to us relative to other regions; therefore we were underweighted and selectively sought to identify value.

It is important to recognize the effect of currency movements on the Fund’s performance. In general, if the value of the U.S. dollar goes up compared with a foreign currency, an investment traded in that foreign currency will go down in value because it will be worth fewer U.S. dollars. This can have a negative effect on Fund performance. Conversely, when the U.S. dollar weakens in relation to a foreign currency, an investment traded in that foreign currency will increase in value, which can contribute to Fund performance. For the six months ended September 30, 2012, the U.S. dollar rose in value relative to many currencies in which the Fund’s investments were traded. As a result, performance of the Fund’s equity portion was negatively affected by the portfolio’s investment primarily in securities with non-U.S. currency exposure.

Ultimately, our top-down allocations resulted from our value findings at the stock level. We do not position the Fund for a particular economic event or political outcome, and the portfolio is constructed entirely from our bottom-up, fundamental research. As Sir John Templeton once explained, “I never ask if the market is going to go up or down, because I don’t know, and besides it doesn’t matter. I search nation after nation for stocks, asking ‘Where is the one that is the lowest priced in relation to what I believe it’s worth?’” The abrupt

8 | Semiannual Report

rally at period-end in some of the market’s most distressed stocks suggested to us that significant opportunities existed to identify stocks that are low priced in relation to what they are worth over a normalized, long-term horizon. Of course, significant headwinds remained given slow growth and excess leverage among developed world governments. Nonetheless, recent policy breakthroughs indicated reasons for optimism, in our view, so that interim volatility created compelling long-term opportunities for disciplined value investors. This is especially so considering many businesses have developed powerful global franchises while maintaining strong fiscal positions. Consequently, we believe the mandate of this Fund, its focus on dividend-paying stocks, and its ability to allocate capital between equity and fixed income based on valuations or volatility can benefit shareholders over the long term.

Fixed Income

During the period under review, we maintained the Fund’s defensive duration posture as policymakers in the G-3 (U.S., eurozone and Japan), the U.K. and Switzerland continued to pursue historically accommodative monetary policies. With interest rates in the U.S. and Japan at historically low levels, central banks supplying significant liquidity to the financial sector and fiscal deficits that drove record funding needs, we saw what we viewed as limited value in those government bond markets. Relative to the Fund’s fixed income benchmark, the Barclays Multiverse Index, select duration exposures in Latin America and Asia contributed while European interest rate strategies detracted. The Fund maintained little duration exposure in emerging markets, except in a select few countries where rates were already quite high.

The Fund’s diversified currency exposures detracted from performance relative to the fixed income benchmark during the period. As part of its investment strategy, the Fund used currency forward contracts to limit or add exposure to various currencies. The U.S. dollar declined 0.39% against the currencies of major U.S. trading partners as several world economies grew at faster paces than did the U.S. ⁶ Dollar strength was particularly pronounced in the middle of the period as market risk aversion peaked, leading several emerging market currencies to depreciate against the U.S. dollar. As risk aversion subsided toward the end of the period, several Latin American currencies regained some of their earlier losses. Nonetheless, currency exposures in the region detracted from performance overall. For the period, the Brazilian real depreciated 10.08% and the Mexican peso depreciated 0.36%, while the Chilean peso appreciated 2.87% against the U.S. dollar. ⁷

6. Source: Federal Reserve H.10 Report.
7. Source: IDC/Exshare.

Semiannual Report | 9

Currency strategies in Asia also weighed on performance. The Fund’s large net-negative position in the Japanese yen, achieved through the use of currency forward contracts, detracted from performance as the yen appreciated 5.78% against the U.S. dollar during the period. ⁷ Positioning in Asian currencies other than the yen somewhat dampened this effect. Our net-negative position in the euro was the largest contributor to relative and absolute performance as the monetary union’s currency weakened 3.39% against the U.S. dollar during the period, while currency positions in peripheral Europe hurt performance. ⁷

In addition to purchasing global government bonds, the Fund also invested in the credit sector. As an asset class, such investments may compensate for greater credit risk by offering higher yields relative to U.S. Treasury and European benchmark bonds. Relative to the Barclays Multiverse Index, the Fund’s overall credit positioning during the period contributed to performance. Specifically, the Fund’s overweighted allocation to high yield corporate bonds was the largest contributor as risk aversion subsided during the period, leading spreads to narrow between yields on subinvestment-grade corporate credits and assets often considered safer, such as U.S. Treasuries.

10 | Semiannual Report

Thank you for your continued participation in Templeton Global Balanced
Fund. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2012, 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 consid-
ered 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 under-
stand our investment management philosophy.

Semiannual Report | 11

Performance Summary as of 9/30/12

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 does 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.

12 | Semiannual Report

Performance Summary (continued)

Performance ¹

Cumulative total retur n excludes sales charges. Aggregate a n d average a nn ual total retur n s a n d value of $10,000 i n vest-
me n t i n clude curre n t maximum sales charges. Class A: 5.75% maximum i n itial sales charge; Class A1: 4.25% maximum
i n itial sales charge; Class C/C1: 1% co n ti n ge n t deferred sales charge i n first year o n ly; Class R/Advisor Class: n o sales
charges.

Semiannual Report | 13

Performa n ce data represe n t past performa n ce, which does n ot guara n tee future results. I n vestme n t retur n a n d pri n cipal
value will fluctuate, a n d you may have a gai n or loss whe n you sell your shares. Curre n t performa n ce may differ from
figures show n . For most rece n t mo n th-e n d performa n ce, go to franklintempleton.com or call (800) 342-5236 .

The i n vestme n t ma n ager a n d admi n istrator have co n tractually agreed to waive or assume certai n expe n ses so that
commo n expe n ses (excludi n g Rule 12b-1 fees a n d acquired fu n d fees a n d expe n ses) for each class of the Fu n d do n ot
exceed 0.95% (other tha n certai n n o n routi n e expe n ses) u n til 7/31/13.

14 | Semiannual Report

Performance Summary (continued)

Endnotes

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. Current political uncertainty surrounding the European Union (EU) and its membership may increase market volatility. The financial instability of some countries in the EU, including Greece, Italy and Spain, together with the risk of that impacting other more stable countries may increase the economic risk of investing in companies in Europe. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as the 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 debt securities include higher risk of default and loss of principal. The Fund’s investment in derivative securities, such as swaps, financial futures and option contracts, and use of foreign currency techniques involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

1. Fund investment results reflect the expense reduction, without which the results would have been lower, and yields for the period would have been 2.29 % , 2.36 % , 1.69 % , 2.04 % , 2.19 % and 2.69 % for Classes A, A1, C, C1, R and Advisor, respectively.

2. Total returns have been calculated based upon the returns for Class A1 shares prior to 7/1/11 and are restated to reflect the current, maximum 5.75 % initial sales charge.

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

4. Average annual total return represents the average annual change in value of an investment over the periods indicated. Six-month return has not been annualized.

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

6. Distribution rate is based on an annualization of the respective class’s most recent quarterly dividend and the maximum offering price (NAV for Classes C, C1, R and Advisor) per share on 9/30/12.

7. The 30-day standardized yield for the 30 days ended 9/30/12 reflects an estimated yield to maturity (assuming all portfolio securities are held to maturity). It should be regarded as an estimate of the Fund’s rate of investment income, and it may not equal the Fund’s actual income distribution rate (which reflects the Fund’s past dividends paid to shareholders) or the income reported in the Fund’s financial statements.

8. Figures are as stated in the Fund’s prospectus current as of the date of this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

Semiannual Report | 15

Your Fund’s Expenses

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

• Transaction costs, including sales charges (loads) on Fund purchases; and
• Ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses.

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

Actual Fund Expenses

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

You can estimate the expenses you paid during the period by following these steps. Of course, your account value and expenses will differ from those in this illustration:

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.

16 | Semiannual 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. 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.

*Expenses are calculated using the most recent six-month expense ratio, net of expense waivers, annualized for each class (A: 1.20 % ; A1: 1.20 % ;
C: 1.95 % ; C1: 1.60 % ; R: 1.45 % ; and Advisor: 0.95 % ), multiplied by the average account value over the period, multiplied by 183/365 to reflect the
one-half year period.

Semiannual Report | 17

Templeton Global Investment Trust

Financial Highlights

^a For the period September 27, 2011 (effective date) to March 31, 2012.
^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 repurchases 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 Amount rounds to less than $0.01 per share.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.

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

^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 repurchases 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 Amount rounds to less than $0.01 per share.
^d Effective September 1, 2008, the redemption fee was eliminated.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.
^g Benefit of expense reduction rounds to less than 0.01 % .

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

^a For the period July 1, 2011 (effective date) to March 31, 2012.
^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 repurchases 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 Amount rounds to less than $0.01 per share.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.

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

^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 repurchases 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 Amount rounds to less than $0.01 per share.
^d Effective September 1, 2008, the redemption fee was eliminated.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.
^g Benefit of expense reduction rounds to less than 0.01 % .

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

^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 repurchases 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 Effective September 1, 2008, the redemption fee was eliminated.
^d Amount rounds to less than $0.01 per share.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.
^g Benefit of expense reduction rounds to less than 0.01 % .

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

^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 repurchases 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 Amount rounds to less than $0.01 per share.
^d Effective September 1, 2008, the redemption fee was eliminated.
^e Total return is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.
^g Benefit of expense reduction rounds to less than 0.01 % .

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

Templeton Global Investment Trust

Statement of Investments, September 30, 2012 (unaudited)

24 | Semiannual Report

26 | Semiannual Report

Semiannual Report | 27

28 | Semiannual Report

Semiannual Report | 29

Semiannual Report | 35

^† Rounds to less than 0.1 % of net assets.
*The principal amount is stated in U.S. dollars unless otherwise indicated.
^a Non-income producing.
^b Security has been deemed illiquid because it may not be able to be sold within seven days. At September 30, 2012, the aggregate value of these securities was $546,933, repre-
senting 0.05 % of net assets.
^c At September 30, 2012, pursuant to the Fund’s policies and the requirements of applicable securities law, the Fund may be restricted from trading these securities for a limited or
extended period of time due to ownership limits and/or potential possession of material non-public information.
^d See Note 1(h) regarding investment in FT Holdings Corporation IV.
^e See Note 1(g) regarding equity-linked securities.
^f 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 September 30,
2012, the aggregate value of these securities was $62,410,367, representing 5.83 % of net assets.
^g Income may be received in additional securities and/or cash.
^h 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 regis-
tration. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At September 30, 2012, the aggregate value of these securities was
$7,659,156, representing 0.72 % of net assets.
ⁱ The coupon rate shown represents the rate at period end.
^j See Note 8 regarding defaulted securities.
^k A portion or all of the security purchased on a when-issued or delayed delivery basis. See Note 1(c).
^l See Note 1(i) regarding senior floating rate interests.
^m Principal amount is stated in 1,000 Brazilian Real Units.
ⁿ Redemption price at maturity is adjusted for inflation. See Note 1(k).
^o Principal amount is stated in 100 Mexican Peso Units.
^p A supranational organization is an entity formed by two or more central governments through international treaties.
^q The security is traded on a discount basis with no stated coupon rate.
^r See Note 1(f) regarding loan participation notes.
^s See Note 7 regarding investments in the Institutional Fiduciary Trust Money Market Portfolio.

At September 30, 2012, the Fund had the following forward exchange contracts outstanding. See Note 1(d).

40 | The accompanying notes are an integral part of these financial statements. | Semiannual Report

Semiannual Report | The accompanying notes are an integral part of these financial statements. | 41

42 | The accompanying notes are an integral part of these financial statements. | Semiannual Report

Semiannual Report | The accompanying notes are an integral part of these financial statements. | 43

Templeton Global Investment Trust

Financial Statements (continued)

44 | The accompanying notes are an integral part of these financial statements. | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited)

Templeton Global Balanced Fund

1. O RGANIZATION AND S IGNIFICANT A CCOUNTING P OLICIES

Templeton Global Investment Trust (Trust) is registered under the Investment Company Act of 1940, as amended, (1940 Act) as an open-end investment company, consisting of six separate funds. The Templeton Global Balanced Fund (Fund) is included in this report. The financial statements of the remaining funds in the Trust are presented separately. The Fund offers six classes of shares: Class A, Class A1, Class C, Class C1, Class R, 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. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Under procedures approved by the Trust’s Board of Trustees (the Board), the Fund’s administrator, investment manager and other affiliates have formed the Valuation and Liquidity Oversight Committee (VLOC). The VLOC provides administration and oversight of the Fund’s valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities and derivative financial instruments (derivatives) listed on an 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. Foreign equity 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. 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 security is determined. Over-the-counter (OTC) securities 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. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities. Investments in open-end mutual funds are valued at the closing net asset value.

Debt securities generally trade in the OTC market rather than on a securities exchange. The Fund’s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates,

Semiannual Report | 45

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at the close of the NYSE on the date that the values of the foreign debt securities are determined.

Certain derivatives trade in the OTC market. The Fund’s pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Fund’s net benefit or obligation under the derivative contract, as measured by the fair market value of the contract, is included in net assets.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the VLOC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VLOC primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The VLOC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before the daily close of business on the NYSE. Occasionally, events occur between the time at which trading in a foreign security is completed and the close of the NYSE that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for these differences, the VLOC 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 Depositary 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 that may call into question the reliability of the values of the foreign securities 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.

46 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

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. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. 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. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. 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 Board.

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

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

c. Securities Purchased on a When-Issued and Delayed Delivery Basis

The Fund purchases securities on a when-issued and 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.

d. Derivative Financial Instruments

The Fund invested in derivatives in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counter-party to fulfill their obligations under the terms of the contract, the potential for an illiquid

Semiannual Report | 47

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown on the Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.

The Fund’s investments in OTC derivatives are subject to the terms of International Swaps and Derivatives Association Master Agreements and other related agreements between the Fund and certain derivative counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, requirements for the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. Should the Fund fail to meet any of these provisions, the derivative counterparty has the right to terminate the derivative contract and require immediate payment by the Fund for those OTC derivatives with that particular counterparty that are in a net unrealized loss position. At September 30, 2012, the Fund had OTC derivatives in a net unrealized loss position for such contracts of $19,495.

The Fund entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency for a specific exchange rate on a future date. Pursuant to the terms of the forward exchange contracts, cash or securities may be required to be deposited as collateral. Unrestricted cash may be invested according to the Fund’s investment objectives.

At September 30, 2012, the Fund held $2,517,666 in United Kingdom Treasury Notes and Bonds and United States Treasury Notes and Bonds, and $260,000 in unrestricted cash as collateral for derivatives.

See Note 10 regarding other derivative information.

e. Restricted Cash

At September 30, 2012, the Fund held restricted cash in connection with investments in certain derivative securities. Restricted cash is held in a segregated account with the counterparty broker and is reflected in the Statement of Assets and Liabilities.

f. Loan Participation Notes

The Fund invests in loan participation notes (“Participations”). Participations are loans originally issued to a borrower by one or more financial institutions (the “Lender”) and subsequently sold to other investors, such as the Fund. Participations typically result in the Fund having a contractual relationship only with the Lender, and not with the borrower. The Fund has the right to receive from the Lender any payments of principal, interest and fees which the Lender received

48 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

from the borrower. The Fund generally has no rights to either enforce compliance by the borrower with the terms of the loan agreement or to any collateral relating to the original loan. As a result, the Fund assumes the credit risk of both the borrower and the Lender that is selling the Participation. The Participations may also involve interest rate risk and liquidity risk, including the potential default or insolvency of the borrower and/or the Lender.

g. Equity-Linked Securities

The Fund invests in equity-linked securities. Equity-linked securities are hybrid financial instruments that generally combine both debt and equity characteristics into a single note form. Income received from equity linked securities is recorded as realized gains in the Statement of Operations and may be based on the performance of an underlying equity security, an equity index, or an option position. The risks of investing in equity-linked securities include unfavorable price movements in the underlying security and the credit risk of the issuing financial institution. There may be no guarantee of a return of principal with equity linked securities and the appreciation potential may be limited. Equity-linked securities may be more volatile and less liquid than other investments held by the Fund.

h. FT Holdings Corporation IV

The Fund invests in certain securities through its investment in FT Holdings Corporation IV, a Delaware Corporation and a wholly-owned subsidiary (Subsidiary) of the Fund. The Subsidiary has the ability to invest in securities consistent with the investment objective of the Fund. At September 30, 2012, all Subsidiary investments as well as any other assets and liabilities are reflected in the Fund’s Statement of Investments and Statement of Assets and Liabilities. All income and expenses of the Subsidiary during the period ended September 30, 2012, have been included in the Fund’s Statement of Operations.

i. Senior Floating Rate Interests

The Fund invests in senior secured corporate loans that pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the London InterBank Offered Rate (LIBOR). Senior secured corporate loans often require prepayment of principal from excess cash flows or at the discretion of the borrower. As a result, actual maturity may be substantially less than the stated maturity.

Senior secured corporate loans in which the Fund invests are generally readily marketable, but may be subject to some restrictions on resale.

Semiannual Report | 49

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which it invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is “more likely than not” to be sustained upon examination by the tax authorities based on the technical merits of the tax position. As of September 30, 2012, and for all open tax years, the Fund has determined that no liability for unrecognized tax benefits is required in the Fund’s financial statements related to uncertain tax positions taken on a tax return (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction statute of limitation.

k. 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. Facility fees are recognized as income over the expected term of the loan. 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.

50 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

Realized and unrealized gains and losses and net investment income, not including 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.

Inflation-indexed bonds are adjusted for inflation through periodic increases or decreases in the security’s interest accruals, face amount, or principal redemption value, by amounts corresponding to the rate of inflation as measured by an index. Any increase or decrease in the face amount or principal redemption value will be included as interest income on the Statement of Operations.

l. 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.

m. 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, on behalf of the Fund, 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. S HARES OF B ENEFICIAL I NTEREST

At September 30, 2012, there were an unlimited number of shares authorized ($0.01 par value).

Transactions in the Fund’s shares were as follows:

52 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

3. T RANSACTIONS WITH A FFILIATES

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:

Under a subadvisory agreement, Advisers, an affiliate of TGAL, provides subadvisory services to
the Fund. The subadvisory fee is paid by TGAL based on the average daily net assets, and is not
an additional expense 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 Board 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 Class A reimbursement
distribution plan, the Fund reimburses Distributors for costs incurred in connection with the serv-
icing, sale and distribution of the Fund’s shares up to the maximum annual plan rate. Under the
Class A and A1 reimbursement distribution plans, costs exceeding the maximum for the current
plan year cannot be reimbursed in subsequent periods. In addition, under the Fund’s Class C, C1,

Semiannual Report | 53

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

3. T RANSACTIONS WITH A FFILIATES (continued)

c. Distribution Fees (continued)

and R compensation distribution plans, the Fund pays Distributors for costs incurred in connec-
tion with the servicing, sale and distribution of the Fund’s shares up to the maximum annual plan
rate for each class.

The maximum annual plan rates, based on the average daily net assets, for each class, are as
follows:

d. Sales Charges/Underwriting Agreements

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses
of the Fund. These charges are deducted from the proceeds of sales of Fund shares prior to
investment or from redemption proceeds prior to remittance, as applicable. Distributors has
advised the Fund of the following commission transactions related to the sales and redemptions
of the Fund’s shares for the period:

e. Transfer Agent Fees

For the period ended September 30, 2012, the Fund paid transfer agent fees of $728,402, of
which $304,351 was retained by Investor Services.

f. Waiver and Expense Reimbursements

TGAL and FT Services have contractually agreed in advance to waive or limit their respective fees
and to assume as their own expense certain expenses otherwise payable by the Fund so that the
common expenses (i.e. a combination of management fees, administrative fees, and other expenses,
but excluding distribution fees, and acquired fund fees and expenses) for each class of the Fund do
not exceed 0.95% (other than certain non-routine expenses or costs, including those relating to liti-
gation, indemnification, reorganizations, and liquidations) until July 31, 2013.

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

4. E XPENSE O FFSET A RRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses. During the period ended September 30, 2012, there were no credits earned.

5. I NCOME T AXES

For tax purposes, capital losses may be carried over to offset future capital gains, if any. Capital loss carryforwards with no expiration, if any, must be fully utilized before those losses with expiration dates.

At March 31, 2012, the capital loss carryforwards were as follows:

For tax purposes, the Fund may elect to defer any portion of a post-October capital loss to the first day of the following fiscal year. At March 31, 2012, the Fund deferred post-October capital losses of $13,444,911.

At September 30, 2012, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of foreign currency transactions and tax straddles.

6. I NVESTMENT T RANSACTIONS

Purchases and sales of investments (excluding short term securities) for the period ended September 30, 2012, aggregated $68,703,619 and $121,846,200, respectively.

Semiannual Report | 55

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

7. I NVESTMENTS IN I NSTITUTIONAL F IDUCIARY T RUST M ONEY M ARKET P ORTFOLIO

The Fund invests in the Institutional Fiduciary Trust Money Market Portfolio (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.

8. C REDIT R ISK AND D EFAULTED S ECURITIES

At September 30, 2012, the Fund had 7.92% of its portfolio invested in high yield, senior secured floating rate notes, or other securities rated below investment grade. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

The Fund held defaulted securities and/or other securities for which the income has been deemed uncollectible. At September 30, 2012, the aggregate value of these securities was $699,130, representing 0.07% 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.

9. C ONCENTRATION OF R ISK

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.

10. O THER D ERIVATIVE I NFORMATION

At September 30, 2012, the Fund has invested in derivative contracts which are reflected on the Statement of Assets and Liabilities as follows:

56 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

10. O THER D ERIVATIVE I NFORMATION (continued)

For the period ended September 30, 2012, the effect of derivative contracts on the Fund’s
Statement of Operations was as follows:

For the period ended September 30, 2012, the average month end market value of derivatives
represented 1.35% of average month end net assets. The average month end number of open
derivative contracts for the period was 173.

See Note 1(d) regarding derivative financial instruments.

11. C REDIT F ACILITY

The Fund, together with other U.S. registered and foreign investment funds (collectively,
Borrowers), managed by Franklin Templeton Investments, are borrowers in a joint syndicated
senior unsecured credit facility totaling $1.5 billion (Global Credit Facility) which matures on
January 18, 2013. This Global Credit Facility provides a source of funds to the Borrowers for
temporary and emergency purposes, including the ability to meet future unanticipated or unusu-
ally large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on
any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees
and expenses incurred in connection with the implementation and maintenance of the Global
Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers,
including an annual commitment fee of 0.08% based upon the unused portion of the Global
Credit Facility, which is reflected in other expenses on the Statement of Operations. During the
period ended September 30, 2012, the Fund did not use the Global Credit Facility.

Semiannual Report | 57

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

12. F AIR V ALUE M EASUREMENTS

The Fund follows a fair value hierarchy that distinguishes between market data obtained from
independent sources (observable inputs) and the Fund’s own market assumptions (unobservable
inputs). These inputs are used in determining the value of the Fund’s financial instruments and
are summarized in the following fair value hierarchy:

• Level 1 – quoted prices in active markets for identical financial instruments
• Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in deter- mining the fair value of financial instruments)

The inputs or methodology used for valuing financial instruments are not an indication of the
risk associated with investing in those financial instruments.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy
of recognizing the transfers as of the date of the underlying event which caused the movement.

A summary of inputs used as of September 30, 2012, in valuing the Fund’s assets and liabilities
carried at fair value, is as follows:

58 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Global Balanced Fund

12. F AIR V ALUE M EASUREMENTS (continued)

A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented
when there are significant Level 3 investments at the end of the period.

13. N EW A CCOUNTING P RONOUNCEMENTS

In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The amendments in the ASU enhance disclosures about offsetting of financial assets and liabilities to enable investors to understand the effect of these arrangements on a fund’s financial position. The ASU is effective for interim and annual reporting periods beginning on or after January 1, 2013. The Fund believes the adoption of this ASU will not have a material impact on its financial statements.

14. S UBSEQUENT E VENTS

The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

Semiannual Report | 59

Templeton Global Investment Trust

Shareholder Information

Templeton Global Balanced Fund

Proxy Voting Policies and Procedures

The Fund’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Fund uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Fund’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Fund’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Statement of Investments

The Fund 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 (800) SEC-0330.

60 | Semiannual Report

Semiannual Report

Templeton Emerging Markets

Small Cap Fund

Your Fund’s Go a l a nd M a in Investments: Templeton Emerging Markets Small Cap

Fund seeks long-term capital appreciation. Under normal market conditions, the Fund invests at least

80% of its net assets in securities of small-cap companies located in emerging market countries, as

defined in the Fund’s prospectus.

We are pleased to bring you Templeton Emerging Markets Small Cap Fund’s
semiannual report for the period ended September 30, 2012.

Economic a nd M a rket Overview

Emerging market economies generally grew faster than their developed market
counterparts as the global economy slowed during the six months under review.
Investor concerns about the eurozone debt crisis and slowing global economic
growth, particularly in the U.S. and China, influenced global stock market
performance and contributed to heightened market volatility early in the
period. However, monetary easing and stimulus measures, as well as liquidity
injections, from many developed and emerging market governments and central
banks helped restore investor confidence in the latter part of the period.

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.

Semiannual Report | 3

Among emerging market countries, Brazil, South Korea, China and India announced fiscal and monetary easing measures to support economic growth. Brazil unveiled a 133 billion real (approximately $66 billion) stimulus package in August, and South Korea announced an 8.5 trillion won (approximately $7.4 billion) stimulus package in June and a 5.9 trillion won (approximately $5.2 billion) package in September. In addition to adopting a monetary easing policy and reducing the reserve requirement ratio, China launched a 1 trillion yuan (approximately $158 billion) stimulus package in September. The Indian government’s unexpected announcement in September of a series of reforms to boost investment and stimulate economic growth led stock prices there to recover.

The performance of emerging market small-cap stocks can be divided into two distinct phases: a correction in the first two months, with stocks reaching a period low in early June, and a rebound in the latter part that offset earlier losses. For the six months ended September 30, 2012, the MSCI Emerging Markets (EM) Small Cap Index, which measures performance of small-cap stocks in emerging markets, had a -0.04% total return in U.S. dollar terms. ¹

Within the emerging market small-cap universe, Asian stocks generally performed better than their emerging market peers, with many Asian markets ending the period with positive returns. European stocks recorded mixed results, with Turkey generating significant outperformance. Latin American stocks held up relatively well. Despite a weaker rand, South African stocks outperformed many of their emerging market peers.

Investment Str a te g y

Our investment strategy employs a fundamental research, value-oriented, long-term approach. We focus on the market price of a company’s securities relative to our evaluation of the company’s long-term (typically five years) earnings, asset value and cash flow potential. We also consider a company’s profit and loss outlook, balance sheet strength, cash flow trends and asset value in relation to the current price. The analysis considers the company’s corporate governance behavior as well as its position in its sector, the economic framework and political environment.

1. Source: © 2012 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The index is unmanaged and includes reinvested dividends. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

4 | Semiannual Report

Perform a nce Overview

For the six months under review, Templeton Emerging Markets Small Cap Fund – Class A delivered a +1.53% cumulative total return. For comparison, the MSCI EM Small Cap Index had a -0.04% total return for the same period. ¹ Please note index performance information is provided for reference and we do not attempt to track any index but rather undertake investments on the basis of fundamental research. In addition, the Fund’s return reflects the effect of fees and expenses for professional management, while an index does not have such costs. You can find more of the Fund’s performance data in the Performance Summary beginning on page 8.

Synergy’s share price corrected due to investor concerns about government measures to curb Russian vodka demand. We continued to favor the company due to its strong market share, growing exports and what we considered to be reasonable valuations. Weak profit margins, high raw milk prices and stiff competition in the dairy market negatively affected Pinar Sut’s shares. In our analysis, Pinar Sut’s strong brand name, growth outlook, and what we considered to be its high dividend yield and strong balance sheet could support the company’s share price in the long term.

It is important to recognize the effect of currency movements on the Fund’s performance. In general, if the value of the U.S. dollar goes up compared with a foreign currency, an investment traded in that foreign currency will go down in value because it will be worth fewer U.S. dollars. This can have a negative effect on Fund performance. Conversely, when the U.S. dollar weakens in relation to a foreign currency, an investment traded in that foreign currency will increase in value, which can contribute to Fund performance. For the six months ended September 30, 2012, the U.S. dollar rose in value relative to many currencies in which the Fund’s investments were traded. As a result, the Fund’s performance was negatively affected by the portfolio’s investment predominantly in securities with non-U.S. currency exposure.

Our continued search for what we considered to be underappreciated companies with attractive valuations led us to increase the Fund’s holdings in Nigeria and Hong Kong and make new investments in Peru and Turkmenistan. As a result, we increased the Fund’s investments in apparel and catalog retail, oil and gas exploration and production, brewing, and diversified banking companies. Key purchases included new investments in Guinness Nigeria, one of the country’s largest brewers; Giordano International, a Hong Kong-based retailer and distributor that offers basic and fashion apparel of quality and value primarily in the Asia-Pacific region and the Middle East; and Intercorp (Intercorp. Financial Services), one of Peru’s leading financial services groups.

Conversely, we undertook some sales as certain stocks reached their sale targets and as we sought to invest in companies we considered to be more attractively valued within our investment universe. As a result, we eliminated the Fund’s position in health care facilities and reduced investments in biotechnology companies and packaged foods and meats companies. We eliminated our position in Thailand and made some sales in South Korea, Turkey and India. Key sales included elimination of the Fund’s holdings in Medytox, a South Korean bio-pharmaceutical company, and Bangkok Chain Hospital, a hospital operator in Thailand, as well as reduction of our investment in Ulker Biskuvi Sanayi, a Turkish biscuits and chocolates producer.

6 | Semiannual Report

Thank you for your continued participation in Templeton Emerging Markets
Small Cap Fund. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2012, 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 reli-
able, 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.

Semiannual Report | 7

Performance Summary as of 9/30/12

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 does 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.

8 | Semiannual Report

Performance Summary (continued)

Perform a nce ¹

Cumulative total retur n excludes sales charges. Average a nn ual total retur n a n d value of $10,000 i n vestme n t i n clude
maximum sales charges. Cl a ss A: 5.75% maximum i n itial sales charge; Cl a ss C: 1% co n ti n ge n t deferred sales charge i n
first year o n ly; Cl a ss R/Advisor Cl a ss: n o sales charges.

Performa n ce data represe n t past performa n ce, which does n ot guara n tee future results. I n vestme n t retur n a n d pri n cipal
value will fluctuate, a n d you may have a gai n or loss whe n you sell your shares. Curre n t performa n ce may differ from
figures show n . For most rece n t mo n th-e n d performa n ce, go to fr a nklintempleton.com or call (800) 342-5236.

The i n vestme n t ma n ager a n d admi n istrator have co n tractually agreed to waive or assume certai n expe n ses so that commo n
expe n ses (excludi n g Rule 12b-1 fees a n d acquired fu n d fees a n d expe n ses) for each class of the Fu n d do n ot exceed
1.80% (other tha n certai n n o n routi n e expe n ses) u n til 7/31/13.

Semiannual Report | 9

Performance Summary (continued)

Endnotes

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in emerging market countries involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Smaller company stocks have historically had more price volatility than large-company stocks, particularly over the short term. Because the Fund is nondiversified and may invest a greater portion of its assets in the securities of one issuer than a diversified fund, it may be more sensitive to economic, business, political or other changes affecting similar issuers or securities. All investments in the Fund should be thought of as long-term investments that could experience significant price volatility in any given year. The Fund is designed for the aggressive portion of a well-diversified portfolio. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

1. Fund investment results reflect the expense reduction, without which the results 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. Six-month return has not been annualized.

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

5. Figures are as stated in the Fund’s prospectus current as of the date of this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

10 | Semiannual Report

Your Fund’s Expenses

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

• Transaction costs, including sales charges (loads) on Fund purchases; and
• 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.

Actu a l 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:

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

Hypothetic a l Ex a mple for Comp a rison 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.

Semiannual Report | 11

Your Fund’s Expenses (continued)

Please note that expenses shown in the table are meant to highlight ongoing costs and do not
reflect any transaction costs, such as sales charges. Therefore, the second line for each class is use-
ful 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.

*Expenses are calculated using the most recent six-month expense ratio, net of expense waivers, annualized for each class (A: 2.10%; C: 2.79%;
R: 2.30%; and Advisor: 1.80%), multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.

12 | Semiannual Report

^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 repurchases 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 Amount rounds to less than $0.01 per share.
^d Effective September 1, 2008, the redemption fee was eliminated.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.

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

^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 repurchases 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 Amount rounds to less than $0.01 per share.
^d Effective September 1, 2008, the redemption fee was eliminated.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.

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

^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 repurchases 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 Amount rounds to less than $0.01 per share.
^d Effective September 1, 2008, the redemption fee was eliminated.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.

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

^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 repurchases 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 Amount rounds to less than $0.01 per share.
^d Effective September 1, 2008, the redemption fee was eliminated.
^e Total return is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.

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

Templeton Global Investment Trust

St a tement of Investments, September 30, 2012 (un a udited)

Semiannual Report | 17

Templeton Global Investment Trust

St a tement of Investments, September 30, 2012 (un a udited) (continued)

Templeton Global Investment Trust

St a tement of Investments, September 30, 2012 (un a udited) (continued)

Semiannual Report | 19

Templeton Global Investment Trust

St a tement of Investments, September 30, 2012 (un a udited) (continued)

See Abbreviations on page 35.

^a Non-income producing.
^b 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 regis-
tration. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At September 30, 2012, the aggregate value of these securities was
$13,502,239, representing 4.24% of net assets.
^c See Note 9 regarding holdings of 5% voting securities.
^d See Note 7 regarding investments in the Institutional Fiduciary Trust Money Market Portfolio.

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

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

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

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

24 | The accompanying notes are an integral part of these financial statements. | Semiannual Report

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

1. O RGANIZATION AND S IGNIFICANT A CCOUNTING P OLICIES

Templeton Global Investment Trust (Trust) is registered under the Investment Company Act of 1940, as amended, (1940 Act) as an open-end investment company, consisting of six separate funds. The Templeton Emerging Markets Small Cap Fund (Fund) is included in this report. The financial statements of the remaining funds in the Trust are presented separately. The Fund offers four classes of shares: Class A, Class C, Class R, 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. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Under procedures approved by the Trust’s Board of Trustees (the Board), the Fund’s administrator, investment manager and other affiliates have formed the Valuation and Liquidity Oversight Committee (VLOC). The VLOC provides administration and oversight of the Fund’s valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities listed on an 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. Foreign equity 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. 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 security is determined. Over-the-counter (OTC) securities 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. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities. Investments in open-end mutual funds are valued at the closing net asset value.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the VLOC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VLOC primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may

Semiannual Report | 25

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The VLOC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before the daily close of business on the NYSE. Occasionally, events occur between the time at which trading in a foreign security is completed and the close of the NYSE that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for these differences, the VLOC 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 Depositary 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 that may call into question the reliability of the values of the foreign securities 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.

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. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. 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. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. 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 Board.

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.

26 | Semiannual Report

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

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. Income and Deferred Taxes

It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which it invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is “more likely than not” to be sustained upon examination by the tax authorities based on the technical merits of the tax position. As of September 30, 2012, and for all open tax years, the Fund has determined that no liability for unrecognized tax benefits is required in the Fund’s financial statements related to uncertain tax positions taken on a tax return (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction statute of limitation.

d. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. 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

Semiannual Report | 27

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

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, not including 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.

e. Accounting Estimates

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

f. 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, on behalf of the Fund, 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.

28 | Semiannual Report

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

2. S HARES OF B ENEFICIAL I NTEREST

At September 30, 2012, there were an unlimited number of shares authorized ($0.01 par value).
Transactions in the Fund’s shares were as follows:

3. T RANSACTIONS WITH A FFILIATES

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:

Semiannual Report | 29

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

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

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 Board 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 Class A reimbursement distribution plan, the Fund reimburses Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund’s shares up to the maximum annual plan rate. Under the Class A reimbursement distribution plan, costs exceeding the maximum for the current plan year cannot be reimbursed in subsequent periods. In addition, under the Fund’s Class C and R 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 the maximum annual plan rate for each class.

The maximum annual plan rates, based on the average daily net assets, for each class, are as follows:

The Board has set the current rate at 0.30% per year for Class A shares until further notice and approval by the Board.

30 | Semiannual Report

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. These charges are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. Distributors has advised the Fund of the following commission transactions related to the sales and redemptions of the Fund’s shares for the period:

For the period ended September 30, 2012, the Fund paid transfer agent fees of $440,508, of which $186,947 was retained by Investor Services.

f. Waiver and Expense Reimbursements

TAML and FT Services have contractually agreed in advance to waive or limit their respective fees and to assume as their own expense certain expenses otherwise payable by the Fund so that the common expenses (i.e. a combination of management fees, administrative fees, and other expenses, but excluding distribution fees, and acquired fund fees and expenses) for each class of the Fund do not exceed 1.80% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2013.

4. E XPENSE O FFSET A RRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses. During the period ended September 30, 2012, there were no credits earned.

5. I NCOME T AXES

For tax purposes, capital losses may be carried over to offset future capital gains, if any. Capital loss carryforwards with no expiration, if any, must be fully utilized before those losses with expiration dates.

Semiannual Report | 31

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

5. I NCOME T AXES (continued)

At March 31, 2012, the Fund had capital loss carryforwards of $2,418,287 expiring in 2018.

At September 30, 2012, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of passive foreign investment company shares.

6. I NVESTMENT T RANSACTIONS

Purchases and sales of investments (excluding short term securities) for the period ended September 30, 2012, aggregated $19,515,863 and $27,536,842, respectively.

7. I NVESTMENTS IN I NSTITUTIONAL F IDUCIARY T RUST M ONEY M ARKET P ORTFOLIO

The Fund invests in the Institutional Fiduciary Trust Money Market Portfolio (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. C ONCENTRATION OF R ISK

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.

32 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Emerging Markets Small Cap Fund

9. H OLDINGS OF 5% V OTING S ECURITIES OF P ORTFOLIO C OMPANIES

The 1940 Act defines “affiliated companies” to include investments in portfolio companies in which a fund owns 5% or more of the outstanding voting securities. Investments in “affiliated companies” for the Fund for the period ended September 30, 2012, were as shown below.

10. C REDIT F ACILITY

The Fund, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton Investments, are borrowers in a joint syndicated senior unsecured credit facility totaling $1.5 billion (Global Credit Facility) which matures on January 18, 2013. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.08% based upon the unused portion of the Global Credit Facility, which is reflected in other expenses on the Statement of Operations. During the period ended September 30, 2012, the Fund did not use the Global Credit Facility.

Semiannual Report | 33

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

11. F AIR V ALUE M EASUREMENTS

The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:

• Level 1 – quoted prices in active markets for identical financial instruments
• Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determin- ing the fair value of financial instruments)

The inputs or methodology used for valuing financial instruments are not an indication of the risk associated with investing in those financial instruments.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.

At September 30, 2012, all of the Fund’s investments in financial instruments carried at fair value were valued using Level 1 inputs. For detailed categories, see the accompanying Statement of Investments.

12. N EW A CCOUNTING P RONOUNCEMENTS

In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The amendments in the ASU enhance disclosures about offsetting of financial assets and liabilities to enable investors to understand the effect of these arrangements on a fund’s financial position. The ASU is effective for interim and annual reporting periods beginning on or after January 1, 2013. The Fund believes the adoption of this ASU will not have a material impact on its financial statements.

13. S UBSEQUENT E VENTS

The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

34 | Semiannual Report

Templeton Global Investment Trust

Notes to Fin a nci a l St a tements (un a udited) (continued)

Templeton Emer g in g M a rkets Sm a ll C a p Fund

A BBREVIATIONS

Selected Portfolio

GDR - Global Depositary Receipt
SDR - Swedish Depositary Receipt

Semiannual Report | 35

Templeton Global Investment Trust

Sh a reholder Inform a tion

Templeton Emer g in g M a rkets Sm a ll C a p Fund

Proxy Votin g Policies a nd Procedures

The Fund’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Fund uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Fund’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Fund’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.

Qu a rterly St a tement of Investments

The Fund 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 (800) SEC-0330.

36 | Semiannual Report

Semiannual Report

Templeton BRIC Fund

Your Fund’s Goal and Main Investments: Templeton BRIC Fund seeks long-term capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in securities of BRIC companies — those companies that are organized under the laws of, have a principal office in, or whose principal trading market is in Brazil, Russia, India or China (including the People’s Republic of China, Hong Kong and Taiwan); or derive 50% or more of their total revenue or profit from, or have 50% or more of their assets in, BRIC countries.

This semiannual report for Templeton BRIC Fund covers the period ended September 30, 2012.

Economic and Market Overview

Investor concerns about the eurozone debt crisis and slowing global economic growth, particularly in the U.S. and China, influenced global stock markets during the six months under review. Stock performance in BRIC markets can be divided into two distinct phases: a correction in the first two months, with stocks reaching a period low in early June, and a rebound in the latter part that partially offset earlier losses. For the six months ended September 30, 2012, the MSCI BRIC Index, which measures stock market performance in Brazil, Russia, India and China, had a -5.40% total return in U.S. dollar terms. ¹

Stimulus measures and liquidity injections from many developed and emerging market governments and central banks helped restore investor confidence in the latter part of the period. Among BRIC countries, Brazil, China and India announced fiscal and monetary easing measures to support economic growth. Brazil unveiled a 133 billion real (approximately $66 billion) stimulus package in August, and China launched a 1 trillion yuan (approximately $158 billion) stimulus package in September. The Indian government’s unexpected announcement in September of a series of reforms to boost investment and stimulate economic growth led stock prices there to recover.

1. Source: © 2012 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The index is unmanaged and includes reinvested dividends. One cannot invest directly in an index, and an index is not 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 16.

Semiannual Report | 3

The Asian markets of China and India performed better than their BRIC peers. India was the only BRIC market to end the reporting period with a positive return, as investors welcomed government efforts to boost economic growth and strengthen the rupee. Although China’s economy slowed, it grew at a robust 7.8% rate year-over-year in the first half of 2012, easing investor fears of a major slowdown, and Chinese stocks ended the period relatively flat. ² Russian stocks declined largely due to lower oil prices and the ruble’s depreciation, despite Russia’s accession to the World Trade Organization (WTO) as its 156th member. In the long term, however, Russia’s membership in the WTO will likely have a positive effect on the country’s trade, economic and investment relations with members globally. Brazil was the worst performer, largely due to investor concerns about slowing economic growth, the real’s recent weakness and lower commodity prices.

Investment Strategy

Our investment strategy employs a fundamental research, value-oriented, long-term approach. We focus on the market price of a company’s securities relative to our evaluation of the company’s long-term (typically five years) earnings, asset value and cash flow potential. We also consider a company’s profit and loss outlook, balance sheet strength, cash flow trends and asset value in relation to the current price. The analysis considers the company’s corporate governance behavior as well as its position in its sector, the economic framework and political environment.

Performance Overview

Templeton BRIC Fund – Class A had a -6.72% cumulative total return for the six months ended September 30, 2012. In comparison, the MSCI BRIC Index had a -5.40% total return for the same period. ¹ Please note index performance information is provided for reference and we do not attempt to track any index but rather undertake investments on the basis of fundamental research. In addition, the Fund’s return reflects the effect of fees and expenses for professional management, while an index does not have such costs. You can find the Fund’s long-term performance data in the Performance Summary beginning on page 9.

2. Source: The website of the National Bureau of Statistics of the People’s Republic of China (www.stats.gov.cn).

4 | Semiannual Report

Manager’s Discussion

During the six months under review, key contributors to the Fund’s absolute performance included Grasim Industries, one of India’s largest cement companies and a major player in the viscose staple fiber (VSF) market; Reliance Industries, India’s largest private company, which operates two giant, complex refineries and produces petrochemical products; and Russia-based TMK, one of the world’s leading manufacturers of value-added pipe products for the oil and gas industry and other industrial markets. The return of capital inflows to the Indian stock market benefited Grasim and Reliance. Strong second-quarter 2012 financial results, an improving VSF outlook and a healthy balance sheet further drove Grasim’s share price increase. In our view, Reliance could benefit from the long-term uptrend in gas and petrochemical prices, as well as rising margins from its refining and petrochemical facilities. TMK, which we considered to be attractively valued, reported solid financial results for the first half of 2012 and maintained a cautiously positive outlook for the rest of 2012. With an extensive international distribution network, TMK could capitalize on continued oil and gas infrastructure development in Russia and elsewhere in the world, as well as the long-term uptrend in oil prices.

In contrast, key detractors from absolute performance included Brazil-based Vale, a global leader in iron ore and nickel production; Yanzhou Coal Mining, one of China’s biggest coal producers; and Itau Unibanco Holding, Brazil’s largest financial conglomerate. China’s slower economic growth in the past six months resulted in lower demand and prices for iron ore and coal, leading to significant price corrections in the shares of many commodity-related companies, including Vale and Yanzhou Coal Mining. We expect this price weakness to be temporary as China and India, along with other Asian countries, continue to lead global economic growth and the longer term demand for iron ore, coal and other commodities strengthens. Itau Unibanco’s weak earnings results in recent quarters reflected Brazil’s economic challenges. The Brazilian real’s strength in recent years eventually stymied the county’s exports and impeded previously rapid economic growth. As President Dilma Rousseff’s economic team implemented measures to stimulate domestic demand and spur exports, which included demands for banks to boost lending and cut interest rates, the country’s banks had to overcome higher loan losses and lower net interest margins. Itau Unibanco continued to cut costs, improve its loan mix and expand its business among underserved population segments. In our long-term view, as Brazil’s largest bank with a full range of banking and financial services, Itau Unibanco is better positioned than others to emerge from the current situation stronger than before.

Semiannual Report | 5

It is important to recognize the effect of currency movements on the Fund’s performance. In general, if the value of the U.S. dollar goes up compared with a foreign currency, an investment traded in that foreign currency will go down in value because it will be worth fewer U.S. dollars. This can have a negative effect on Fund performance. Conversely, when the U.S. dollar weakens in relation to a foreign currency, an investment traded in that foreign currency will increase in value, which can contribute to Fund performance. For the six months ended September 30, 2012, the U.S. dollar rose in value relative to many currencies in which the Fund’s investments were traded. As a result, the Fund’s performance was negatively affected by the portfolio’s investment predominantly in securities with non-U.S. currency exposure.

Our continued search for what we considered to be underappreciated stocks with attractive valuations led us to undertake some purchases in India, Hong Kong and Russia. We increased the Fund’s holdings in information technology (IT) consulting, specialty retail, and real estate management and development companies due to fundamentals we considered to be attractive. Key purchases included additional investments in Infosys, one of India’s top IT consulting companies; Giordano International, a Hong Kong-based retailer and distributor that offers basic and fashion apparel of quality and value primarily in the Asia-Pacific region and the Middle East; and Russia-based Gazprom, the world’s largest natural gas producer.

Conversely, we undertook selective sales as we received redemptions in the first three months of the reporting period and as we strategically repositioned the Fund’s portfolio. These actions subsequently reduced the Fund’s investments in diversified banking, integrated oil and gas, Internet software and services, and coal and consumable fuels companies. Geographically, we sold some of the Fund’s holdings in Brazil and China via Hong Kong-listed China H and China Red Chip shares. ³ Key sales included elimination of the Fund’s positions in Chinese commercial banks ICBC (Industrial and Commercial Bank of China) and China Construction Bank, as well as reduction of the Fund’s investments in PetroChina, one of China’s largest integrated oil and gas companies.

Companies related to energy, materials and retail continued to account for significant positions in the Fund, reflecting our positive long-term outlook for consumer- and commodity-related companies due to rising per-capita incomes and increasing consumption in BRIC countries. The valuations of some commodity-related companies became more attractive to us after recent share price corrections resulting from commodity price declines. Cognizant that companies do not benefit equally from rising commodity

3. “China H” denotes shares of China-incorporated, Hong Kong Stock Exchange-listed companies with most businesses in China. “Red Chip” denotes shares of Hong Kong Stock Exchange-listed companies with significant exposure to China.

6 | Semiannual Report

prices, we continued to be selective in deciding on investment opportunities,
as is consistent with our long-term, value-oriented investment strategy.

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

The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2012, 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 consid-
ered 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 under-
stand our investment management philosophy.

Semiannual Report | 7

8 | Semiannual Report

Performance Summary as of 9/30/12

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 does 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

Cumulative total return excludes sales charges. Average annual total return 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.

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, go to franklintempleton.com or call (800) 342-5236.

Semiannual Report | 9

Performance Summary (continued)

Endnotes

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctua-
tions, economic instability and political developments. Investments in BRIC companies, which are located in, or operate in, emerging market
countries, involve heightened risks related to the same factors, in addition to those associated with these companies’ smaller size, lesser liquid-
ity and the lack of established legal, political, business and social frameworks to support securities markets in the countries in which they
operate. The Fund is a nondiversified fund. It may invest a greater portion of its assets in the securities of one issuer than a diversified fund,
which may result in greater fluctuation in the value of the Fund’s shares. All investments in emerging markets should be considered long-term
investments that could experience significant price volatility in any given year. The Fund is designed for the aggressive portion of a well-diversified
portfolio. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The
Fund’s prospectus also includes a description of the main investment risks.

1. 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. 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. Six-month return has not
been annualized.
4. These figures represent the value of a hypothetical $10,000 investment in the Fund over the periods indicated.
5. Figures are as stated in the Fund’s prospectus current as of the date of this report. In periods of market volatility, assets may decline significantly,
causing total annual Fund operating expenses to become higher than the figures shown.
6. Effective 8/1/08, the Fund began offering Advisor Class shares, which do not have sales charges or a Rule 12b-1 plan. Performance quotations for
this class reflect the following methods of calculation: (a) For periods prior to 8/1/08, a restated figure is used based upon the Fund’s Class A per-
formance, excluding the effect of Class A’s maximum initial sales charge, but reflecting the effect of the Class A Rule 12b-1 fees; and (b) for periods
after 8/1/08 actual Advisor Class performance is used reflecting all charges and fees applicable to that class. Since 8/1/08 (commencement of
sales), the cumulative and average annual total returns of Advisor Class shares were -20.21% and -5.28%.

10 | Semiannual Report

Your Fund’s Expenses

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

• Transaction costs, including sales charges (loads) on Fund purchases; and
• Ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses.

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

Actual Fund Expenses

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

You can estimate the expenses you paid during the period by following these steps. Of course, your account value and expenses will differ from those in this illustration:

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.

Semiannual Report | 11

Your Fund’s Expenses (continued)

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect
any transaction costs, such as sales charges. 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.

*Expenses are calculated using the most recent six-month expense ratio, annualized for each class (A: 2.11%, C: 2.83%; and Advisor: 1.83%),
multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.

12 | Semiannual Report

^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 repurchases 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 Effective September 1, 2008, the redemption fee was eliminated.
^d Amount rounds to less than $0.01 per share.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.
^g Benefit of expense reduction rounds to less than 0.01%.

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

^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 repurchases 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 Effective September 1, 2008, the redemption fee was eliminated.
^d Amount rounds to less than $0.01 per share.
^e Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
^f Ratios are annualized for periods less than one year.
^g Benefit of expense reduction rounds to less than 0.01%.

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

^a For the period August 1, 2008 (effective date) to March 31, 2009.
^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 repurchases 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 Benefit of expense reduction rounds to less than 0.01%.

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

Templeton Global Investment Trust

Statement of Investments, September 30, 2012 (unaudited)

16 | Semiannual Report

Templeton Global Investment Trust

Statement of Investments, September 30, 2012 (unaudited) (continued)

Semiannual Report | 17

Templeton Global Investment Trust

Statement of Investments, September 30, 2012 (unaudited) (continued)

Templeton BRIC Fund

^a Non-income producing.
^b Security has been deemed illiquid because it may not be able to be sold within seven days. At September 30, 2012, the value of this security was $259,642, representing 0.06% of
net assets.
^c A portion or all of the security purchased on a delayed delivery basis. See Note 1(c).
^d At September 30, 2012, pursuant to the Fund’s policies and the requirements of applicable securities law, the Fund may be restricted from trading these securities for a limited or
extended period of time due to ownership limits and/or potential possession of material non-public information.
^e 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 regis-
tration. This security has been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At September 30, 2012, the value of this security was $8,004,961,
representing 1.80% of net assets.
^f See Note 7 regarding investments in the Institutional Fiduciary Trust Money Market Portfolio.

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

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

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

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

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

Templeton Global Investment Trust

Notes to Financial Statements (unaudited)

Templeton BRIC Fund

1. O RGANIZATION AND S IGNIFICANT A CCOUNTING P OLICIES

Templeton Global Investment Trust (Trust) is registered under the Investment Company Act of 1940, as amended, (1940 Act) as an open-end investment company, consisting of six separate funds. The Templeton BRIC Fund (Fund) is included in this report. 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. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Under procedures approved by the Trust’s Board of Trustees (the Board), the Fund’s administrator, investment manager and other affiliates have formed the Valuation and Liquidity Oversight Committee (VLOC). The VLOC provides administration and oversight of the Fund’s valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities listed on an 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. Foreign equity 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. 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 security is determined. Over-the-counter (OTC) securities 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. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities. Investments in open-end mutual funds are valued at the closing net asset value.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the VLOC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VLOC primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to

Semiannual Report | 23

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The VLOC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before the daily close of business on the NYSE. Occasionally, events occur between the time at which trading in a foreign security is completed and the close of the NYSE that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for these differences, the VLOC 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 Depositary 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 that may call into question the reliability of the values of the foreign securities 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.

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. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. 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. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. 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 Board.

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.

24 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

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 Delayed Delivery Basis

The Fund purchases securities on a 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.

d. Income and Deferred Taxes

It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which it invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is “more likely than not” to be sustained upon examination by the tax authorities based on the technical merits of the tax position. As of September 30, 2012, and for all open tax years, the Fund has determined that no liability for unrecognized tax benefits is required in the Fund’s financial statements related to uncertain tax positions taken on a tax return (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction statute of limitation.

Semiannual Report | 25

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. 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, not including 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.

f. Accounting Estimates

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

g. 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, on behalf of the Fund, 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.

26 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

2. S HARES OF B ENEFICIAL I NTEREST

At September 30, 2012, there were an unlimited number of shares authorized ($0.01 par value).
Transactions in the Fund’s shares were as follows:

3. T RANSACTIONS WITH A FFILIATES

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:

Semiannual Report | 27

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

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

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 Board 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 Class A reimbursement distribution plan, the Fund reimburses Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund’s shares up to the maximum annual plan rate. Under the Class A reimbursement distribution plan, costs exceeding the maximum for the current plan year cannot be reimbursed in subsequent periods. In addition, under the Fund’s Class C compensation distribution plan, the Fund pays Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund’s shares up to the maximum annual plan rate.

The maximum annual plan rates, based on the average daily net assets, for each class, are as follows:

The Board has set the current rate at 0.30% per year for Class A shares until further notice and approval by the Board.

d. Sales Charges/Underwriting Agreements

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. These charges are deducted from the proceeds of sales of Fund shares prior to

28 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

3. T RANSACTIONS WITH A FFILIATES (continued)

d. Sales Charges/Underwriting Agreements (continued)

investment or from redemption proceeds prior to remittance, as applicable. Distributors has
advised the Fund of the following commission transactions related to the sales and redemptions
of the Fund’s shares for the period:

e. Transfer Agent Fees

For the period ended September 30, 2012, the Fund paid transfer agent fees of $940,796, of
which $395,067 was retained by Investor Services.

4. E XPENSE O FFSET A RRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits realized as a result
of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses.
During the period ended September 30, 2012, there were no credits earned.

5. I NCOME T AXES

For tax purposes, capital losses may be carried over to offset future capital gains, if any. Under
the Regulated Investment Company Modernization Act of 2010, capital losses incurred by the
Fund in taxable years beginning after December 22, 2010 are not subject to expiration and such
losses retain their character as either short-term or long-term, rather than being considered short-
term as under previous law. Post-enactment capital losses must be fully utilized prior to utilizing
any losses incurred in pre-enactment tax years.

At March 31, 2012, capital loss carryforwards were as follows:

Semiannual Report | 29

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

5. I NCOME T AXES (continued)

At September 30, 2012, the cost of investments and net unrealized appreciation (depreciation) for
income tax purposes were as follows:

Differences between income and/or capital gains as determined on a book basis and a tax basis
are primarily due to differing treatments of foreign currency transactions, passive foreign invest-
ment company shares and wash sales.

6. I NVESTMENT T RANSACTIONS

Purchases and sales of investments (excluding short term securities) for the period ended
September 30, 2012, aggregated $66,203,753 and $121,408,174, respectively.

7. I NVESTMENTS IN I NSTITUTIONAL F IDUCIARY T RUST M ONEY M ARKET P ORTFOLIO

The Fund invests in the Institutional Fiduciary Trust Money Market Portfolio (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. C ONCENTRATION OF R ISK

Investing in foreign securities may include certain risks and considerations not typically associ-
ated 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.

30 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

9. C REDIT F ACILITY

The Fund, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton Investments, are borrowers in a joint syndicated senior unsecured credit facility totaling $1.5 billion (Global Credit Facility) which matures on January 18, 2013. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.08% based upon the unused portion of the Global Credit Facility, which is reflected in other expenses on the Statement of Operations. During the period ended September 30, 2012, the Fund did not use the Global Credit Facility.

10. F AIR V ALUE M EASUREMENTS

The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:

• Level 1 – quoted prices in active markets for identical financial instruments
• Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in deter- mining the fair value of financial instruments)

The inputs or methodology used for valuing financial instruments are not an indication of the risk associated with investing in those financial instruments.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.

Semiannual Report | 31

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton BRIC Fund

10. F AIR V ALUE M EASUREMENTS (continued)

A summary of inputs used as of September 30, 2012, in valuing the Fund’s assets carried at fair

value, is as follows:

^a Includes common and preferred stocks.
^b For detailed categories, see the accompanying Statement of Investments.

A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented
when there are significant Level 3 investments at the end of the period.

11. N EW A CCOUNTING P RONOUNCEMENTS

In December 2011, the Financial Accounting Standards Board issued Accounting Standards
Update (ASU) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and
Liabilities. The amendments in the ASU enhance disclosures about offsetting of financial assets
and liabilities to enable investors to understand the effect of these arrangements on a fund’s
financial position. The ASU is effective for interim and annual reporting periods beginning on or
after January 1, 2013. The Fund believes the adoption of this ASU will not have a material
impact on its financial statements.

12. S UBSEQUENT E VENTS

The Fund has evaluated subsequent events through the issuance of the financial statements and
determined that no events have occurred that require disclosure.

A BBREVIATIONS

Selected Portfolio

ADR - American Depositary Receipt
GDR - Global Depositary Receipt

32 | Semiannual Report

Templeton Global Investment Trust

Shareholder Information

Templeton BRIC Fund

Proxy Voting Policies and Procedures

The Fund’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Fund uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Fund’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Fund’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Statement of Investments

The Fund 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 (800) SEC-0330.

Semiannual Report | 33

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

Semiannual Report

Templeton Frontier Markets Fund

Your Fund’s Goal and Main Investments: Templeton Frontier Markets Fund seeks long-term capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in securities of companies located in “frontier market countries” as defined in the prospectus. Such companies are organized under the laws of, have a principal office in, or have their principal trading market in frontier market countries; or derive at least 50% of their total revenue or profit from either goods or services produced or sales made in frontier market countries; or have at least 50% of their assets in, or are linked to currencies of, frontier market countries.

We are pleased to bring you Templeton Frontier Markets Fund’s semiannual report for the period ended September 30, 2012.

Economic and Market Overview

Many frontier market countries registered healthy growth rates during the period. Nigeria’s gross domestic product (GDP) grew 6.3% year-over-year in the second quarter, compared to 6.2% in the first quarter. ¹ Loan growth at

1. Source: Nigeria National Bureau of Statistics.

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.

Semiannual Report | 3

Nigeria’s five largest commercial banks accelerated during the second quarter,
reflecting healthy credit demand and strong economic activity. Kenya’s GDP
grew 3.3% year-over-year in the second quarter, compared to 3.4% in the
first quarter. ² The country’s inflation rate trended down, ending the period at
5.3% year-over-year. ² This allowed the Central Bank of Kenya to reduce its
benchmark interest rate to 13% in September from a high of 18% during the
first half of the year.

Qatar’s GDP grew 5.0% year-over-year in the second quarter. ³ The country
was largely unaffected by the civil unrest that spread through the region
beginning in early 2011, largely due to its low unemployment and poverty
levels. Increases in the production and export of oil and gas have contributed
to double-digit GDP growth rates in recent years, which led Qatar to have
one of the world’s highest GDP rates per capita, despite its high population
growth through immigration. Although Qatar’s economic growth could slow,
we believe it is likely to remain at a healthy level due to the country’s high
infrastructure spending, especially related to projects in preparation for the
soccer World Cup in 2022.

Panama’s GDP growth remained robust at 10.4% year-over-year in the sec-
ond quarter. ⁴ Economic performance in the medium term will be driven by
large-scale projects, such as the Panama Canal expansion and metro system
construction in Panama City. Panama is planning to develop into a regional
logistics hub and to expand its capacity for reassembly operations. Panama’s
bilateral free-trade agreement with the U.S., which will be effective in November,
could have a positive impact on the country’s trade and investment flows.

Frontier markets’ relative fiscal and fundamental strength helped them to be
less affected than most emerging markets by the eurozone sovereign debt crisis
and slowing global economic growth. As a result, the MSCI Frontier Markets
Index, which tracks stock performance in global frontier markets, posted a
+0.37% total return in U.S. dollar (USD) terms for the six months ended
September 30, 2012, and outperformed the -1.57% total return in USD terms
of the MSCI Emerging Markets Index, which measures stock performance in
emerging markets. ⁵

2. Source: Kenya National Bureau of Statistics.
3. Source: Qatar Statistics Authority.
4. Source: Contraloria General de la Republica de Panama.
5. Source: © 2012 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar
and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of
this information. The indexes are unmanaged and include reinvested dividends. One cannot invest directly in an index,
and an index is not representative of the Fund’s portfolio.

4 | Semiannual Report

Stock performance in frontier markets could be divided into two distinct periods: a correction in the first two and a half months, with stocks reaching a period low in mid-June, and outperformance in the latter part that offset earlier losses. Kenya and Nigeria were among the top performers, ending the period with double-digit returns as investors grew increasingly confident about Africa’s economic growth prospects. At the other end of the spectrum, Argentina underperformed as many investors avoided its stocks because of the government’s decision to nationalize the country’s largest oil and gas company.

Investment Strategy

Our investment strategy employs a fundamental research, value-oriented, long-term approach. We focus on the market price of a company’s securities relative to our evaluation of the company’s long-term (typically five years) earnings, asset value and cash flow potential. We also consider a company’s profit and loss outlook, balance sheet strength, cash flow trends and asset value in relation to the current price. The analysis considers the company’s corporate governance behavior as well as its position in its sector, the economic framework and political environment.

Performance Overview

Templeton Frontier Markets Fund – Class A delivered a +2.98% cumulative total return for the six months ended September 30, 2012. For comparison, the MSCI Frontier Markets Index posted a +0.37% total return for the same period. ⁵ Also for comparison, the Standard & Poor’s ^® (S&P ^® ) Frontier Broad Market Index, which tracks performance of relatively small and illiquid frontier market stocks, had a -1.18% total return for the same period. ⁶ Please note index performance information is provided for reference and we do not attempt to track any index but rather undertake investments on the basis of fundamental research. In addition, the Fund’s return reflects the effect of fees and expenses for professional management, while an index does not have such costs. You can find more of the Fund’s performance data in the Performance Summary beginning on page 10.

6. Source: © 2012 Morningstar. STANDARD & POOR’S ^® , S&P ^® and S&P 500 ^® are registered trademarks of Standard & Poor’s Financial Services LLC. The index is unmanaged and includes reinvested dividends. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

Semiannual Report | 5

Manager’s Discussion

During the six months under review, key contributors to the Fund’s absolute performance included First Bank of Nigeria, one of the country’s leading commercial banks; NagaCorp, an integrated hotel and casino operator that holds an exclusive license in the Cambodian Capital of Phnom Penh; and a new holding, Youngone, a South Korea-based exporter of OEM (original equipment manufacturing) sportswear products with manufacturing facilities in Bangladesh, China, El Salvador and Vietnam. First Bank reported strong second-quarter 2012 results that showed significant earnings growth and return on equity. First Bank’s strong market presence and what we considered to be attractive valuations and good dividend yield led us to maintain our long-term positive view of the bank. As a result, we increased the Fund’s investments in First Bank during the period. We reduced the Fund’s holdings in NagaCorp as its stock price reached its sale target, allowing us to use the proceeds to invest in companies that we considered to be more attractively valued within our investment universe. Youngone reported solid second-quarter 2012 earnings results and recorded better-than-expected sales growth amid a sluggish market, largely due to increased manufacturing in Bangladesh and higher productivity. In our view, its favorable business outlook and healthy balance sheet could support the company’s growth in the years ahead.

In contrast, key detractors from the Fund’s absolute performance included BRD-Groupe Societe Generale, one of Romania’s largest commercial banks; Ferrexpo, a new holding and one of the top five global iron ore companies by reserves, with its main assets located in Ukraine; and Agroton Public, one of Ukraine’s major diversified agricultural companies. BRD-Groupe’s share price declined because of the Romanian economy’s slower-than-expected recovery and increased investor risk aversion due to the eurozone sovereign debt crisis. Also weighing on the stock price was the perceived risk of the bank’s parent company, France’s Societe Generale Group. Ferrexpo’s share price was negatively affected by general iron ore market weakness and the company’s weak first-half 2012 profit resulting from lower iron ore prices and higher raw material costs. We maintained a long-term positive view of the company due to its upcoming growth projects, strong management, and what we considered to be its attractive valuations and healthy balance sheet. As a result, we sought to take advantage of the stock price correction to increase the Fund’s holdings in Ferrexpo at what we considered to be more attractive prices. Agroton’s share price declined primarily due to a weak 2011 financial report and independent credit rating agency S&P’s May 2012 downgrade of the company’s long-term corporate and senior unsecured debt ratings to CCC+ from B-. The downgrade was in response to an independent auditor’s qualified opinion based on a lack of

6 | Semiannual Report

adequate documentation for 2011 sales transactions. We learned that the company was unable to obtain shipment documentation for exports and therefore had no evidence to support its 2011 sales receivables. However, if the company is able to collect all the receivables, we believe the reason for the auditor’s qualified opinion would be nullified. The company has sought to increase operational efficiency and improve investor sentiment. In our long-term view at period-end, we remained positive on the company due to what we considered to be its attractive valuations, expert management and favorable position as one of Ukraine’s largest diversified agricultural companies.

It is important to recognize the effect of currency movements on the Fund’s performance. In general, if the value of the U.S. dollar goes up compared with a foreign currency, an investment traded in that foreign currency will go down in value because it will be worth fewer U.S. dollars. This can have a negative effect on Fund performance. Conversely, when the U.S. dollar weakens in relation to a foreign currency, an investment traded in that foreign currency will increase in value, which can contribute to Fund performance. For the six months ended September 30, 2012, the U.S. dollar rose in value relative to many currencies in which the Fund’s investments were traded. As a result, the Fund’s performance was negatively affected by the portfolio’s investment predominantly in securities with non-U.S. currency exposure.

Substantial inflows that the Fund received during the period led us to increase the Fund’s holdings in most markets as we identified companies with valuations we considered to be attractive within our investment universe. We undertook some of the largest purchases in Qatar, Romania, Kazakhstan and Nigeria. We also made some purchases in Colombia and Turkmenistan. As a result, we increased the Fund’s holdings in diversified banking, oil and gas, metals and mining, and telecommunication services companies. Key purchases included new investments in Ferrexpo; Romania-based Petrom, Eastern Europe’s largest oil and gas company; and Bank of Georgia Holdings, the leading bank in Georgia; as well as additional shares of Industries Qatar, the country’s biggest integrated industrial holding company.

Conversely, we undertook some sales as certain stocks reached their sale targets and as we sought to invest in companies we considered to be more attractively valued within our investment universe. As a result, we reduced the Fund’s investments in real estate development and management, casinos and gaming, agricultural products, and apparel retail companies. Key sales included reduction of holdings in NagaCorp and elimination of positions in Emaar Properties, a Gulf region real estate developer based in the United Arab Emirates, and Dangote Sugar Refinery, a Nigerian sugar refiner.

Semiannual Report | 7

Thank you for your continued participation in Templeton Frontier Markets
Fund. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2012, 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.

8 | Semiannual Report

Semiannual Report | 9

Performance Summary as of 9/30/12

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 does 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.

10 | Semiannual Report

Performance Summary (continued)

Performance ¹

Cumulative total return excludes sales charges. Average annual total return 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; Class R/Advisor Class: no sales charges.

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, go to franklintempleton.com or call (800) 342-5236 .

The investment manager and/or administrator have contractually agreed to waive or assume certain expenses so that
common expenses (excluding Rule 12b-1 fees and acquired fund fees and expenses) for each class of the Fund do not
exceed 1.85% (other than certain nonroutine expenses) until 7/31/13.

Semiannual Report | 11

Performance Summary (continued)

Endnotes

All investments involve risks, including possible loss of principal. Special risks are associated with foreign investing, including currency fluctua-
tions, economic instability and political developments. Investments in emerging market countries, of which frontier markets are a subset,
involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of
established legal, political, business and social frameworks to support securities markets. The Fund’s ability to invest in smaller company secu-
rities that may have limited liquidity involves additional risks, such as relatively small revenues, limited product lines and small market share.
Historically, these stocks have exhibited greater price volatility than larger company stocks, especially over the short term. Because the Fund is
nondiversified and may invest a greater portion of its assets in the securities of one issuer than a diversified fund, it may be more sensitive to
economic, business, political or other changes affecting similar issuers or securities. All investments in the Fund should be thought of as long-
term investments that could experience significant price volatility in any given year. The Fund is designed for the aggressive portion of a
well-diversified portfolio. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the
desired results. The Fund’s prospectus also includes a description of the main investment risks.

1. Fund investment results reflect the expense reduction, without which the results 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. Six-month return has not
been annualized.
4. These figures represent the value of a hypothetical $10,000 investment in the Fund over the periods indicated.
5. Figures are as stated in the Fund’s prospectus current as of the date of this report. In periods of market volatility, assets may decline significantly,
causing total annual Fund operating expenses to become higher than the figures shown.

12 | Semiannual Report

Your Fund’s Expenses

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

• Transaction costs, including sales charges (loads) on Fund purchases; and
• Ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses.

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

Actual Fund Expenses

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

You can estimate the expenses you paid during the period by following these steps. Of course, your account value and expenses will differ from those in this illustration:

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.

Semiannual Report | 13

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. 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.

*Expenses are calculated using the most recent six-month expense ratio, annualized for each class (A: 2.06%; C: 2.76%; R: 2.26%; and
Advisor: 1.76%), multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.

14 | Semiannual Report

^a For the period October 14, 2008 (commencement of operations) to March 31, 2009.
^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 repurchases 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 does not reflect sales commissions or contingent deferred sales charges, if applicable, and 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%.

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

^a For the period October 14, 2008 (commencement of operations) to March 31, 2009.
^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 repurchases 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 does not reflect sales commissions or contingent deferred sales charges, if applicable, and 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%.

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

^a For the period October 14, 2008 (commencement of operations) to March 31, 2009.
^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 repurchases 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 does not reflect sales commissions or contingent deferred sales charges, if applicable, and 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%.

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

^a For the period October 14, 2008 (commencement of operations) to March 31, 2009.
^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 repurchases 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 Benefit of expense reduction rounds to less than 0.01%.

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

Templeton Global Investment Trust

Statement of Investments, September 30, 2012 (unaudited)

Semiannual Report | 19

Templeton Global Investment Trust

Statement of Investments, September 30, 2012 (unaudited) (continued)

Templeton Global Investment Trust

Statement of Investments, September 30, 2012 (unaudited) (continued)

Semiannual Report | 21

Templeton Global Investment Trust

Statement of Investments, September 30, 2012 (unaudited) (continued)

See Abbreviations on page 37.

^† Rounds to less than 0.1% of net assets.
^a 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 regis-
tration. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At September 30, 2012, the aggregate value of these securities was
$19,317,444, representing 3.31% of net assets.
^b Non-income producing.
^c See Note 1(c) regarding Participatory Notes.
^d See Note 7 regarding investments in the Institutional Fiduciary Trust Money Market Portfolio.

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

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

24 | The accompanying notes are an integral part of these financial statements. | Semiannual Report

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

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

Templeton Global Investment Trust

Notes to Financial Statements (unaudited)

Templeton Frontier Markets Fund

1. O RGANIZATION AND S IGNIFICANT A CCOUNTING P OLICIES

Templeton Global Investment Trust (Trust) is registered under the Investment Company Act of 1940, as amended, (1940 Act) as an open-end investment company, consisting of six separate funds. The Templeton Frontier Markets Fund (Fund) is included in this report. The financial statements of the remaining funds in the Trust are presented separately. The Fund offers four classes of shares: Class A, Class C, Class R, 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. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Under procedures approved by the Trust’s Board of Trustees (the Board), the Fund’s administrator, investment manager and other affiliates have formed the Valuation and Liquidity Oversight Committee (VLOC). The VLOC provides administration and oversight of the Fund’s valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities listed on an 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. Foreign equity 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. 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 security is determined. Over-the-counter (OTC) securities 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. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities. Investments in open-end mutual funds are valued at the closing net asset value.

Debt securities generally trade in the OTC market rather than on a securities exchange. The Fund’s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates,

Semiannual Report | 27

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Frontier Markets Fund

anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at the close of the NYSE on the date that the values of the foreign debt securities are determined.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the VLOC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VLOC primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The VLOC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before the daily close of business on the NYSE. Occasionally, events occur between the time at which trading in a foreign security is completed and the close of the NYSE that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for these differences, the VLOC 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 Depositary 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 that may call into question the reliability of the values of the foreign securities 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.

28 | Semiannual Report

Templeton Global Investment Trust

Notes to Financial Statements (unaudited) (continued)

Templeton Frontier Markets Fund