Templeton Institutional Funds
08/28/2026 | Press release | Distributed by Public on 08/28/2026 05:07
Semi-Annual Report by Investment Company (Form N-CSRS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06135
Templeton Institutional Funds
(Exact name of registrant as specified in charter)
300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923
(Address of principal executive offices) (Zip code)
Alison Baur
Franklin Templeton
One Franklin Parkway
San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: (954) 527-7500
Date of fiscal year end: December 31
Date of reporting period: June 30, 2026
| ITEM 1. | REPORT TO STOCKHOLDERS. |
(a) The Report to Shareholders is filed herewith
|
TIF Foreign Smaller Companies Series
|
||
|
Advisor Class [TFSCX]
|
||
|
Semi-Annual Shareholder Report | June 30, 2026
|
||
This semi-annual shareholder reportcontains important information about TIF Foreign Smaller Companies Series for the period January 1, 2026, to June 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 321-8563.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 321-8563.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*,†
|
|
Advisor Class
|
$71
|
1.36%
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY FUND STATISTICS (as of June 30, 2026)
|
Total Net Assets
|
$19,098,091
|
|
Total Number of Portfolio Holdings
|
62
|
|
Portfolio Turnover Rate
|
13.79%
|
WHAT DID THE FUND INVEST IN? (as of June 30, 2026)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| TIF Foreign Smaller Companies Series | PAGE 1 | 458-STSR-0826 |
|
TIF International Equity Series
|
||
|
Primary Shares [TFEQX]
|
||
|
Semi-Annual Shareholder Report | June 30, 2026
|
||
This semi-annual shareholder reportcontains important information about TIF International Equity Series for the period January 1, 2026, to June 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 321-8563.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 321-8563.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*,†
|
|
Primary Shares
|
$57
|
1.07%
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY FUND STATISTICS (as of June 30, 2026)
|
Total Net Assets
|
$62,188,694
|
|
Total Number of Portfolio Holdings
|
50
|
|
Portfolio Turnover Rate
|
20.04%
|
WHAT DID THE FUND INVEST IN? (as of June 30, 2026)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| TIF International Equity Series | PAGE 1 | 454-STSR-0826 |
|
TIF International Equity Series
|
||
|
Service Shares [TFESX]
|
||
|
Semi-Annual Shareholder Report | June 30, 2026
|
||
This semi-annual shareholder reportcontains important information about TIF International Equity Series for the period January 1, 2026, to June 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 321-8563.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 321-8563.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*,†
|
|
Service Shares
|
$74
|
1.38%
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY FUND STATISTICS (as of June 30, 2026)
|
Total Net Assets
|
$62,188,694
|
|
Total Number of Portfolio Holdings
|
50
|
|
Portfolio Turnover Rate
|
20.04%
|
WHAT DID THE FUND INVEST IN? (as of June 30, 2026)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| TIF International Equity Series | PAGE 1 | 444-STSR-0826 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
Not applicable.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| (b) | Not applicable. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Templeton
Institutional
Funds
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
June
30,
2026
Foreign
Smaller
Companies
Series
International
Equity
Series
If
you
need
assistance
accessing
this
content,
please
reach
out
to
your
sales
representative
or
send
an
email
to
.
Table
of
Contents
ftinstitutional.com
Financial
Statements
and
Other
Important
Information-Semiannual
1
Financial
Highlights
and
Schedules
of
Investments
2
Financial
Statements
11
Notes
to
Financial
Statements
14
Changes
In
and
Disagreements
with
Accountants
26
Results
of
Meeting(s)
of
Shareholders
26
Remuneration
Paid
to
Directors,
Officers
and
Others
26
Board
Approval
of
Management
and
Subadvisory
Agreements
26
Templeton
Institutional
Funds
Financial
Highlights
Foreign
Smaller
Companies
Series
ftinstitutional.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Six
Months
Ended
June
30,
2026
(unaudited)
Year
Ended
December
31,
2025
2024
2023
2022
2021
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.18
$15.94
$18.67
$16.35
$21.80
$23.03
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.09
0.34
0.28
0.26
0.31
0.28
Net
realized
and
unrealized
gains
(losses)
0.91
1.20
(0.72)
2.30
(5.38)
2.07
Total
from
investment
operations
........
1.00
1.54
(0.44)
2.56
(5.07)
2.35
Less
distributions
from:
Net
investment
income
..............
-
(1.25)
(0.63)
(0.24)
(0.32)
(0.28)
Net
realized
gains
.................
-
(6.05)
(1.66)
-
(0.06)
(3.30)
Total
distributions
...................
-
(7.30)
(2.29)
(0.24)
(0.38)
(3.58)
Net
asset
value,
end
of
period
..........
$11.18
$10.18
$15.94
$18.67
$16.35
$21.80
Total
return
c
.......................
9.82%
9.98%
(2.49)%
15.75%
(23.19)%
10.72%
Ratios
to
average
net
assets
d
Expenses
e
........................
1.36%
1.26%
1.10%
1.09%
1.02%
1.04%
Net
investment
income
...............
1.73%
2.04%
1.50%
1.49%
1.76%
1.13%
Supplemental
data
Net
assets
,
end
of
period
(000's)
........
$19,098
$23,948
$111,846
$191,256
$353,380
$739,717
Portfolio
turnover
rate
................
13.79%
90.01%
29.65%
36.62%
16.54%
31.09%
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's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Templeton
Institutional
Funds
Schedule
of
Investments
(unaudited),
June
30,
2026
Foreign
Smaller
Companies
Series
ftinstitutional.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
a
Industry
Shares
a
Value
a
Common
Stocks
94.0%
Austria
2.1%
DO
&
CO
AG
...................
Commercial
Services
&
Supplies
988
$
245,121
SBO
AG
.......................
Energy
Equipment
&
Services
4,833
159,039
404,160
Bahamas
2.3%
OneSpaWorld
Holdings
Ltd.
........
Diversified
Consumer
Services
15,752
444,837
Brazil
3.0%
a
Arcos
Dorados
Holdings,
Inc.
,
A
.....
Hotels,
Restaurants
&
Leisure
38,957
313,994
b
Dexco
SA
......................
Paper
&
Forest
Products
262,944
253,149
567,143
Canada
4.3%
b
Athabasca
Oil
Corp.
..............
Oil,
Gas
&
Consumable
Fuels
24,100
173,666
Canaccord
Genuity
Group,
Inc.
......
Capital
Markets
63,600
654,723
828,389
China
1.7%
c
Greentown
Service
Group
Co.
Ltd.
,
Reg
S
...........................
Real
Estate
Management
&
Development
650,000
325,863
France
3.4%
Mersen
SA
.....................
Electrical
Equipment
13,588
648,953
Germany
3.5%
Jenoptik
AG
....................
Electronic
Equipment,
Instruments
&
Components
6,079
327,771
a,b,c
Montana
Aerospace
AG
,
144A
,
Reg
S
.
Aerospace
&
Defense
12,700
333,835
661,606
Hong
Kong
2.5%
Techtronic
Industries
Co.
Ltd.
.......
Machinery
28,500
474,284
Ireland
2.1%
Uniphar
plc
.....................
Health
Care
Providers
&
Services
79,678
405,277
Israel
1.5%
b
Nayax
Ltd.
.....................
Electronic
Equipment,
Instruments
&
Components
4,254
276,186
Italy
8.7%
c
Carel
Industries
SpA
,
144A
,
Reg
S
...
Building
Products
9,745
353,525
a
Ferretti
SpA
....................
Leisure
Products
95,189
324,420
Interpump
Group
SpA
.............
Machinery
6,556
253,806
LU-VE
SpA
.....................
Building
Products
3,156
239,953
Sanlorenzo
SpA
.................
Leisure
Products
6,695
274,406
c
Technogym
SpA
,
144A
,
Reg
S
......
Leisure
Products
12,619
219,360
1,665,470
Japan
19.6%
a
Aica
Kogyo
Co.
Ltd.
..............
Chemicals
10,300
234,681
Anicom
Holdings,
Inc.
.............
Insurance
33,500
253,116
Asics
Corp.
.....................
Textiles,
Apparel
&
Luxury
Goods
10,100
274,707
a
IDOM,
Inc.
.....................
Specialty
Retail
35,400
297,457
Kaneka
Corp.
...................
Chemicals
11,300
398,436
a
Keihanshin
Building
Co.
Ltd.
........
Real
Estate
Management
&
Development
59,800
400,368
METAWATER
Co.
Ltd.
............
Machinery
14,100
291,017
Morinaga
&
Co.
Ltd.
..............
Food
Products
12,800
204,520
Nichiha
Corp.
...................
Building
Products
7,900
148,931
a
Nihon
M&A
Center
Holdings,
Inc.
....
Capital
Markets
49,100
193,232
Templeton
Institutional
Funds
Schedule
of
Investments
(unaudited)
Foreign
Smaller
Companies
Series
(continued)
ftinstitutional.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
Japan
(continued)
Nissei
ASB
Machine
Co.
Ltd.
........
Machinery
8,000
$
449,807
Raito
Kogyo
Co.
Ltd.
..............
Construction
&
Engineering
11,500
289,530
Roland
Corp.
...................
Leisure
Products
12,300
313,808
3,749,610
Mexico
1.5%
Bolsa
Mexicana
de
Valores
SAB
de
CV
Capital
Markets
142,600
284,181
New
Zealand
1.4%
Summerset
Group
Holdings
Ltd.
.....
Health
Care
Providers
&
Services
54,428
269,293
Norway
1.5%
TGS
ASA
......................
Energy
Equipment
&
Services
22,689
294,844
Philippines
1.4%
Puregold
Price
Club,
Inc.
...........
Consumer
Staples
Distribution
&
Retail
415,700
275,036
Singapore
1.1%
Stoneweg
Europe
Stapled
Trust
.....
Diversified
REITs
119,700
209,417
South
Korea
8.3%
BNK
Financial
Group,
Inc.
..........
Banks
24,739
273,909
iM
Financial
Group
Co.
Ltd.
.........
Banks
14,213
155,000
InBody
Co.
Ltd.
..................
Health
Care
Equipment
&
Supplies
13,912
521,431
ISC
Co.
Ltd.
....................
Semiconductors
&
Semiconductor
Equipment
1,610
192,891
NongShim
Co.
Ltd.
...............
Food
Products
387
84,035
Soulbrain
Co.
Ltd.
................
Chemicals
1,494
356,575
1,583,841
Switzerland
2.5%
c
Medacta
Group
SA
,
144A
,
Reg
S
....
Health
Care
Equipment
&
Supplies
1,754
295,181
a
Siegfried
Holding
AG
..............
Life
Sciences
Tools
&
Services
2,156
188,662
483,843
Taiwan
4.5%
Primax
Electronics
Ltd.
............
Electronic
Equipment,
Instruments
&
Components
139,000
289,946
Tripod
Technology
Corp.
...........
Electronic
Equipment,
Instruments
&
Components
34,000
559,999
849,945
Thailand
0.5%
I-TAIL
Corp.
PCL
.................
Food
Products
186,100
90,450
United
Kingdom
13.6%
Coats
Group
plc
.................
Textiles,
Apparel
&
Luxury
Goods
177,872
183,904
Fevertree
Drinks
plc
..............
Beverages
30,260
326,124
Man
Group
plc
..................
Capital
Markets
138,217
535,836
Oxford
Instruments
plc
............
Electronic
Equipment,
Instruments
&
Components
7,190
290,693
Savills
plc
......................
Real
Estate
Management
&
Development
28,225
319,730
Vesuvius
plc
....................
Machinery
66,330
394,166
b,c
Watches
of
Switzerland
Group
plc
,
144A
Specialty
Retail
57,341
539,753
2,590,206
United
States
3.0%
Axis
Capital
Holdings
Ltd.
..........
Insurance
1,603
172,226
Templeton
Institutional
Funds
Schedule
of
Investments
(unaudited)
Foreign
Smaller
Companies
Series
(continued)
ftinstitutional.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
United
States
(continued)
a,b
IMAX
Corp.
.....................
Entertainment
9,999
$
398,560
570,786
Total
Common
Stocks
(Cost
$
11,783,106
)
......................................
17,953,620
a
Management
Investment
Companies
1.0%
United
States
1.0%
iShares
MSCI
EAFE
Small-Cap
ETF
..
Capital
Markets
2,375
195,391
Total
Management
Investment
Companies
(Cost
$
195,764
)
.......................
195,391
Total
Long
Term
Investments
(Cost
$
11,978,870
)
................................
18,149,011
Short
Term
Investments
3.9%
a
a
Industry
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
3.7%
United
States
3.7%
d,e
Franklin
Institutional
U.S.
Government
Money
Market
Fund
,
3.597
%
......
711,057
711,057
Total
Money
Market
Funds
(Cost
$
711,057
)
.....................................
711,057
f
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.2%
Money
Market
Funds
0.2%
d,e
Franklin
Institutional
U.S.
Government
Money
Market
Fund
,
3.597
%
......
43,160
43,160
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
43,160
)
....................................................................
43,160
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$
754,217
)
..................................
754,217
a
a
a
Total
Investments
(Cost
$
12,733,087
)
98.9
%
....................................
$18,903,228
Other
Assets,
less
Liabilities
1.1
%
.............................................
194,863
Net
Assets
100.0%
...........................................................
$19,098,091
a
a
a
See
Abbreviations
on
page
25
.
a
A
portion
or
all
of
the
security
is
on
loan
at
June
30,
2026.
See
Note
1(d).
b
Non-income
producing.
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
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.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2026,
the
aggregate
value
of
these
securities
was
$2,067,517,
representing
10.8%
of
net
assets.
d
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
f
See
Note
1(d)
regarding
securities
on
loan.
Templeton
Institutional
Funds
Financial
Highlights
International
Equity
Series
ftinstitutional.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
Six
Months
Ended
June
30,
2026
(unaudited)
Year
Ended
December
31,
2025
2024
2023
2022
2021
Primary
Shares
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.33
$10.21
$10.91
$10.19
$11.96
$15.22
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.11
0.20
0.24
0.49
c
0.26
0.26
Net
realized
and
unrealized
gains
(losses)
1.32
2.92
0.67
1.77
(1.40)
0.55
Total
from
investment
operations
........
1.43
3.12
0.91
2.26
(1.14)
0.81
Less
distributions
from:
Net
investment
income
..............
-
(0.22)
(0.30)
(0.90)
(0.10)
(1.46)
Net
realized
gains
.................
-
(3.78)
(1.31)
(0.64)
(0.53)
(2.61)
Total
distributions
...................
-
(4.00)
(1.61)
(1.54)
(0.63)
(4.07)
Net
asset
value,
end
of
period
..........
$10.76
$9.33
$10.21
$10.91
$10.19
$11.96
Total
return
d
.......................
15.43%
31.09%
8.40%
22.84%
(9.23)%
5.75%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.11%
1.20%
0.97%
0.92%
0.87%
0.94%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.07%
1.16%
0.92%
0.88%
0.83%
0.91%
Net
investment
income
...............
2.06%
1.72%
2.02%
4.31%
c
2.35%
1.64%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$62,072
$57,987
$101,210
$127,735
$196,051
$386,291
Portfolio
turnover
rate
................
20.04%
56.42%
30.90%
18.18%
f
46.42%
44.73%
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
repurchas-
es
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.23
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.34%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Templeton
Institutional
Funds
Financial
Highlights
International
Equity
Series
(continued)
ftinstitutional.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
Six
Months
Ended
June
30,
2026
(unaudited)
Year
Ended
December
31,
2025
2024
2023
2022
2021
Service
Shares
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.77
$10.55
$11.23
$10.45
$12.24
$15.48
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.09
0.21
0.22
0.49
c
0.20
0.24
Net
realized
and
unrealized
gains
(losses)
1.39
2.98
0.69
1.84
(1.38)
0.58
Total
from
investment
operations
........
1.48
3.19
0.91
2.33
(1.18)
0.82
Less
distributions
from:
Net
investment
income
..............
-
(0.19)
(0.28)
(0.91)
(0.08)
(1.45)
Net
realized
gains
.................
-
(3.78)
(1.31)
(0.64)
(0.53)
(2.61)
Total
distributions
...................
-
(3.97)
(1.59)
(1.55)
(0.61)
(4.06)
Net
asset
value,
end
of
period
..........
$11.25
$9.77
$10.55
$11.23
$10.45
$12.24
Total
return
d
.......................
15.25%
30.80%
8.21%
22.68%
(9.29)%
5.69%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.42%
1.44%
1.19%
0.86%
1.01%
1.04%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.38%
1.40%
1.15%
0.82%
0.97%
1.00%
Net
investment
income
...............
1.77%
1.75%
1.82%
4.26%
c
1.71%
1.52%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$117
$132
$129
$136
$123
$521
Portfolio
turnover
rate
................
20.04%
56.42%
30.90%
18.18%
f
46.42%
44.73%
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
repurchas-
es
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.23
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
2.29%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Templeton
Institutional
Funds
Schedule
of
Investments
(unaudited),
June
30,
2026
International
Equity
Series
ftinstitutional.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Industry
Shares
a
Value
a
Common
Stocks
93.3%
Australia
0.9%
Rio
Tinto
plc
....................
Metals
&
Mining
6,045
$
571,886
Canada
4.3%
Manulife
Financial
Corp.
...........
Insurance
26,100
1,058,539
Royal
Bank
of
Canada
............
Banks
7,700
1,594,455
2,652,994
China
4.4%
a
Alibaba
Group
Holding
Ltd.
.........
Broadline
Retail
56,800
680,944
BYD
Co.
Ltd.
,
H
.................
Automobiles
66,500
616,183
a,b
JD.com,
Inc.
,
ADR
................
Broadline
Retail
31,512
802,926
a
Tencent
Holdings
Ltd.
.............
Interactive
Media
&
Services
12,000
662,191
2,762,244
Denmark
1.8%
Novo
Nordisk
A/S
,
B
..............
Pharmaceuticals
22,881
1,098,905
France
6.3%
Cie
de
Saint-Gobain
SA
...........
Building
Products
11,371
1,031,149
LVMH
Moet
Hennessy
Louis
Vuitton
SE
Textiles,
Apparel
&
Luxury
Goods
1,340
741,101
Veolia
Environnement
SA
..........
Multi-Utilities
28,173
1,174,005
Vinci
SA
.......................
Construction
&
Engineering
6,755
986,555
3,932,810
Germany
9.3%
adidas
AG
......................
Textiles,
Apparel
&
Luxury
Goods
8,269
1,697,044
Daimler
Truck
Holding
AG
..........
Machinery
18,849
909,070
Deutsche
Telekom
AG
.............
Diversified
Telecommunication
Services
26,717
728,420
Infineon
Technologies
AG
..........
Semiconductors
&
Semiconductor
Equipment
19,016
1,791,344
Siemens
Energy
AG
..............
Electrical
Equipment
3,439
655,616
5,781,494
Hong
Kong
1.4%
AIA
Group
Ltd.
..................
Insurance
98,400
900,875
India
2.2%
HDFC
Bank
Ltd.
.................
Banks
163,981
1,383,911
Japan
10.6%
Daiwa
Securities
Group,
Inc.
........
Capital
Markets
81,600
809,288
Ebara
Corp.
....................
Machinery
38,100
1,492,092
Japan
Post
Bank
Co.
Ltd.
..........
Banks
55,000
1,046,779
Mitsubishi
Electric
Corp.
...........
Electrical
Equipment
32,458
1,190,381
Mizuho
Financial
Group,
Inc.
........
Banks
15,500
744,447
b
Toyota
Motor
Corp.
,
ADR
..........
Automobiles
7,600
1,279,992
6,562,979
Netherlands
8.5%
Akzo
Nobel
NV
..................
Chemicals
14,585
991,866
c
Euronext
NV
,
144A
,
Reg
S
.........
Capital
Markets
7,396
1,182,999
Heineken
NV
...................
Beverages
15,864
1,331,983
ING
Groep
NV
..................
Banks
56,879
1,794,721
5,301,569
Norway
1.7%
Norsk
Hydro
ASA
................
Metals
&
Mining
113,770
1,029,480
South
Korea
6.4%
Samsung
Electronics
Co.
Ltd.
.......
Technology
Hardware,
Storage
&
Peripherals
17,988
3,991,488
Templeton
Institutional
Funds
Schedule
of
Investments
(unaudited)
International
Equity
Series
(continued)
ftinstitutional.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
Switzerland
2.2%
UBS
Group
AG
..................
Capital
Markets
27,543
$
1,365,031
Taiwan
4.6%
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
......................
Semiconductors
&
Semiconductor
Equipment
36,298
2,863,559
United
Kingdom
16.0%
AstraZeneca
plc
.................
Pharmaceuticals
13,347
2,491,942
Barratt
Redrow
plc
...............
Household
Durables
153,551
572,648
b
Diageo
plc
,
ADR
.................
Beverages
12,200
980,636
JD
Sports
Fashion
plc
.............
Specialty
Retail
669,979
753,035
Lloyds
Banking
Group
plc
..........
Banks
452,473
662,207
SSE
plc
.......................
Electric
Utilities
55,584
1,793,280
Standard
Chartered
plc
............
Banks
58,429
1,580,071
Unilever
plc
.....................
Personal
Care
Products
18,363
1,103,021
9,936,840
United
States
12.7%
BP
plc
.........................
Oil,
Gas
&
Consumable
Fuels
266,054
1,639,889
CNH
Industrial
NV
................
Machinery
85,069
955,325
CRH
plc
.......................
Construction
Materials
12,628
1,351,196
Sanofi
SA
......................
Pharmaceuticals
15,942
1,363,099
Shell
plc
.......................
Oil,
Gas
&
Consumable
Fuels
35,145
1,365,559
Smurfit
Westrock
plc
..............
Containers
&
Packaging
26,232
1,213,492
7,888,560
Total
Common
Stocks
(Cost
$
39,620,229
)
......................................
58,024,625
Short
Term
Investments
3.2%
a
a
Industry
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
0.7%
United
States
0.7%
d,e
Franklin
Institutional
U.S.
Government
Money
Market
Fund
,
3.597
%
......
462,344
462,344
Total
Money
Market
Funds
(Cost
$
462,344
)
.....................................
462,344
f
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
2.5%
Money
Market
Funds
2.5%
d,e
Franklin
Institutional
U.S.
Government
Money
Market
Fund
,
3.597
%
......
1,523,015
1,523,015
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
1,523,015
)
.................................................................
1,523,015
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$
1,985,359
)
.................................
1,985,359
a
a
a
Total
Investments
(Cost
$
41,605,588
)
96.5
%
....................................
$60,009,984
Other
Assets,
less
Liabilities
3.5
%
.............................................
2,178,710
Net
Assets
100.0%
...........................................................
$62,188,694
a
a
a
Templeton
Institutional
Funds
Schedule
of
Investments
(unaudited)
International
Equity
Series
(continued)
ftinstitutional.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
See
Abbreviations
on
page
25
.
a
Variable
interest
entity
(VIE).
See
Note
8
regarding
investments
made
through
a
VIE
structure.
At
June
30,
2026,
the
aggregate
value
of
these
securities
was
$2,146,061,
representing
3.5%
of
net
assets.
b
A
portion
or
all
of
the
security
is
on
loan
at
June
30,
2026.
See
Note
1(d).
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
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.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2026,
the
value
of
this
security
was
$1,182,999,
representing
1.9%
of
net
assets.
d
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
f
See
Note
1(d)
regarding
securities
on
loan.
Templeton
Institutional
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
June
30,
2026
(unaudited)
ftinstitutional.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
Foreign
Smaller
Companies
Series
International
Equity
Series
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
..................................................
$11,978,870
$39,620,229
Cost
-
Non-controlled
affiliates
(Note
3
d
)
.......................................
754,217
1,985,359
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$1,683,734
and
$2,518,999,
respectively)
............................................................
$18,149,011
$58,024,625
Value
-
Non-controlled
affiliates
(Note
3
d
)
......................................
754,217
1,985,359
Foreign
currency,
at
value
(cost
$314
and
$47,380,
respectively)
......................
311
47,446
Receivables:
Investment
securities
sold
..................................................
-
507,682
Capital
shares
sold
.......................................................
1,744
10,831
Dividends
..............................................................
140,160
3,375,105
Foreign
tax
refund
........................................................
-
11,499
European
Union
tax
reclaims
(Note
1
e
)
........................................
253,343
-
Affiliates
...............................................................
-
23,217
Total
assets
.........................................................
19,298,786
63,985,764
Liabilities:
Payables:
Investment
securities
purchased
.............................................
-
246
Capital
shares
redeemed
..................................................
129,463
229,000
Management
fees
........................................................
15,063
-
Custodian
fees
..........................................................
11,675
4,216
Transfer
agent
fees
.......................................................
2,326
1,479
Trustees'
fees
and
expenses
................................................
-
7,126
Payable
upon
return
of
securities
loaned
(Note
1
d
)
.................................
43,160
1,523,015
Accrued
expenses
and
other
liabilities
..........................................
(992)
31,988
Total
liabilities
........................................................
200,695
1,797,070
Net
assets,
at
value
................................................
$19,098,091
$62,188,694
Net
assets
consist
of:
Paid-in
capital
............................................................
$8,397,641
$37,460,672
Total
distributable
earnings
(losses)
............................................
10,700,450
24,728,022
Net
assets,
at
value
................................................
$19,098,091
$62,188,694
Shares
outstanding
........................................................
1,707,511
Net
asset
value
per
share
a
...................................................
$11.18
International
Equity
Series
Primary
Shares:
Net
assets,
at
value
.......................................................................
$62,071,513
Shares
outstanding
........................................................................
5,770,706
Net
asset
value
per
share
a
..................................................................
$10.76
Service
Shares:
Net
assets,
at
value
.......................................................................
$117,181
Shares
outstanding
........................................................................
10,418
Net
asset
value
per
share
a
..................................................................
$11.25
a
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Templeton
Institutional
Funds
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
June
30,
2026
(unaudited)
ftinstitutional.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
Foreign
Smaller
Companies
Series
International
Equity
Series
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$-
and
$82,788,
respectively)
Unaffiliated
issuers
.......................................................
$320,732
$967,363
Non-controlled
affiliates
(Note
3
d
)
............................................
4,916
27,580
Interest:
Unaffiliated
issuers
.......................................................
109
1,781
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
....................................
(1,797)
(14,518)
Non-controlled
affiliates
(Note
3
d
)
............................................
4,432
17,728
Other
income
(Note
1e)
.....................................................
699
-
Total
investment
income
..................................................
329,091
999,934
Expenses:
Management
fees
(Note
3
a
)
..................................................
101,263
247,384
Transfer
agent
fees:
(Note
3c
)
Primary
Shares
.........................................................
-
10,613
Service
Shares
.........................................................
-
126
Transfer
agent
fees
(Note
3c)
.................................................
5,203
-
Sub-transfer
agent
fees:
(Note
3c)
Service
Shares
.........................................................
-
107
Custodian
fees
...........................................................
6,237
1,245
Reports
to
shareholders
fees
.................................................
3,408
5,436
Registration
and
filing
fees
...................................................
6,514
20,171
Professional
fees
..........................................................
2,717
17,227
Trustees'
fees
and
expenses
.................................................
-
10,653
Pricing
fees
..............................................................
18,251
18,081
Other
...................................................................
1,607
24,849
Total
expenses
........................................................
145,200
355,892
Expenses
waived/paid
by
affiliates
(Note
3
d
and
3
e
)
.............................
(363)
(13,088)
Net
expenses
........................................................
144,837
342,804
Net
investment
income
...............................................
184,254
657,130
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
(net
of
foreign
taxes
of
$-
and
$645,669,
respectively)
Unaffiliated
issuers
.....................................................
2,597,831
4,987,508
Foreign
currency
transactions
...............................................
(555)
6,959
Futures
contracts
........................................................
-
349,025
Net
realized
gain
(loss)
.................................................
2,597,276
5,343,492
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
.....................................................
(570,963)
3,102,051
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
.............
(18,331)
(122,907)
Futures
contracts
........................................................
-
(36,576)
Change
in
deferred
taxes
on
unrealized
appreciation
..............................
-
28,992
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(589,294)
2,971,560
Net
realized
and
unrealized
gain
(loss)
...........................................
2,007,982
8,315,052
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................
$2,192,236
$8,972,182
Templeton
Institutional
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
ftinstitutional.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
Foreign
Smaller
Companies
Series
International
Equity
Series
Six
Months
Ended
June
30,
2026
(unaudited)
Year
Ended
December
31,
2025
Six
Months
Ended
June
30,
2026
(unaudited)
Year
Ended
December
31,
2025
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$184,254
$1,286,170
$657,130
$1,150,408
Net
realized
gain
(loss)
............
2,597,276
24,871,213
5,343,492
27,238,899
Net
change
in
unrealized
appreciation
(depreciation)
.................
(589,294)
(19,405,242)
2,971,560
(8,584,343)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
2,192,236
6,752,141
8,972,182
19,804,964
Distributions
to
shareholders:
Primary
Shares
..................
-
-
-
(18,443,166)
Service
Shares
..................
-
-
-
(49,690)
Distributions
to
shareholders
.........
-
(10,939,760)
-
-
Total
distributions
to
shareholders
.....
-
(10,939,760)
-
(18,492,856)
Capital
share
transactions:
(Note
2
)
Primary
Shares
..................
-
-
(4,867,661)
(44,544,785)
Service
Shares
..................
-
-
(34,648)
12,424
Capital
share
transactions
(Note
2
)
.....
(7,042,070)
(83,710,712)
-
-
Total
capital
share
transactions
.......
(7,042,070)
(83,710,712)
(4,902,309)
(44,532,361)
Net
increase
(decrease)
in
net
assets
.....................
(4,849,834)
(87,898,331)
4,069,873
(43,220,253)
Net
assets:
Beginning
of
period
................
23,947,925
111,846,256
58,118,821
101,339,074
End
of
period
.....................
$19,098,091
$23,947,925
$62,188,694
$58,118,821
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
14
ftinstitutional.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Templeton
Institutional
Funds
(Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of two
separate
funds
(Funds).
The Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
-
Investment
Companies
(ASC
946)
and apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
International
Equity
Series
offers
Primary
and
Service
Shares.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Funds'
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The Funds'
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.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier. Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds'
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities,
exchange
traded
funds, and
derivative
financial instruments 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
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
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
NAV.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
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.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds'
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
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
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
June
30,
2026,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
within
the
fair
value
hierarchy
(referred
to
as
"market
level
fair
value").
See
the
Fair
Value
Measurements
note
for
more
information.
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
15
ftinstitutional.com
Semiannual
Report
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
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
Funds
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
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
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.
Derivative
Financial
Instruments
Certain
or
all
Funds
invested
in
derivative
financial
instruments
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
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the
Statements
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the
Statements
of
Operations.
Certain
or
all
Funds
entered
into
exchange
traded
futures
contracts
primarily
to
manage
and/or
gain
exposure
to equity
price
risk.
A
futures
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
an
asset
at
a
specified
price
on
a
future
date.
Required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statements
of
Assets
and
Liabilities.
Futures
contracts
outstanding
at
period
end,
if
any,
are
listed
in
the
Funds'
Schedules
of
Investments.
See
Note
6
regarding
other
derivative
information.
d.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds.
Additionally,
at
June
30,
2026,
Foreign
Smaller
Companies
Series
and
International
Equity
Series
held
$1,835,862
and
$1,107,805,
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
16
ftinstitutional.com
Semiannual
Report
respectively,
in
U.S.
Government
and
Agency
securities
as
collateral.
These
securities
are
held
as
collateral
in
segregated
accounts
with
the
Funds'
custodian.
The
Fund
cannot
repledge
or
resell
these
securities
held
as
collateral.
As
such,
the
non-cash
collateral
is
excluded
from
the
Statements
of
Assets
and
Liabilities. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statements of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
Securities
on
loan
outstanding
at
period
end,
if
any,
are
listed
in
the
Funds'
Schedules
of
Investments.
e.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
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
Funds
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 the
Funds invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
In
some
cases,
the
Funds
may
be
entitled
to
reclaim
all
or
a
portion
of
such
taxes,
and
such
reclaim
amounts,
if
any,
are
reflected
as
a
dividend
receivable
in
the
Statements
of
Assets
and
Liabilities
and
dividend
income
in
the
Statements
of
Operations.
In
many
cases,
however,
the
Funds
may
not
receive
such
amounts
for
an
extended
period
of
time,
depending
on
the
country
of
investment.
When
a
capital
gain
tax
is
determined
to
apply, certain
or all Funds record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union, certain
or
all Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements
of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their
income
tax
returns.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
June
30,
2026, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
The
Funds'
federal
and
state
income
and
federal
excise
tax
returns
for
the
prior
three
fiscal
years
are
subject
to
examination
by
the
Internal
Revenue
Service
and
state
departments
of
revenue.
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Securities
Lending
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
17
ftinstitutional.com
Semiannual
Report
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
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
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,
excluding
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.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
h.
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
Funds, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
June
30,
2026,
there
were
an
unlimited
number
of
shares
authorized
(without
par value).
Transactions
in
the
Funds'
shares
were
as
follows:
Foreign
Smaller
Companies
Series
Shares
Amount
Advisor
Class
Six
Months
ended
June
30,
2026
Shares
sold
..................................................................
95,011
$1,042,184
Shares
redeemed
..............................................................
(739,610)
(8,084,254)
Net
increase
(decrease)
.........................................................
(644,599)
$(7,042,070)
Year
ended
December
31,
2025
Shares
sold
..................................................................
312,508
$4,972,218
Shares
issued
in
reinvestment
of
distributions
.........................................
1,014,696
10,268,719
Shares
redeemed
..............................................................
(5,991,881)
(98,951,649)
Net
increase
(decrease)
.........................................................
(4,664,677)
$(83,710,712)
1.
Organization
and
Significant
Accounting
Policies
(continued)
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
18
ftinstitutional.com
Semiannual
Report
3.
Transactions
with
Affiliates
Effective
August
17,
2026,
Franklin
Resources,
Inc.
was
renamed
Franklin
Templeton,
Inc.
Franklin
Templeton,
Inc.
is
the
holding
company
for
various
subsidiaries.
Certain
officers
and
trustees
of
the Trust are
also
officers
and/or
directors
of
the
following
subsidiaries:
International
Equity
Series
Shares
Amount
Primary
Shares
Primary
Shares:
Six
Months
ended
June
30,
2026
Shares
sold
..................................................................
768,062
$7,861,006
Shares
redeemed
..............................................................
(1,209,841)
(12,728,667)
Net
increase
(decrease)
.........................................................
(441,779)
$(4,867,661)
Year
ended
December
31,
2025
Shares
sold
..................................................................
1,061,783
$12,083,748
Shares
issued
in
reinvestment
of
distributions
.........................................
1,808,573
17,030,276
Shares
redeemed
..............................................................
(6,573,690)
(73,658,809)
Net
increase
(decrease)
.........................................................
(3,703,334)
$(44,544,785)
Service
Shares
Service
Shares:
Six
Months
ended
June
30,
2026
Shares
sold
..................................................................
51
$537
Shares
redeemed
..............................................................
(3,092)
(35,185)
Net
increase
(decrease)
.........................................................
(3,041)
$(34,648)
Year
ended
December
31,
2025
Shares
sold
..................................................................
227
$2,760
Shares
issued
in
reinvestment
of
distributions
.........................................
5,043
49,690
Shares
redeemed
..............................................................
(4,060)
(40,026)
Net
increase
(decrease)
.........................................................
1,210
$12,424
Subsidiary
Affiliation
Templeton
Investment
Counsel,
LLC
(TIC)
Investment
manager
Franklin
Templeton
Investments
Corp.
(FTIC)
Subadvisor
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
19
ftinstitutional.com
Semiannual
Report
a.
Management
Fees
Foreign
Smaller
Companies
Series pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to TIC based
on the
average
daily
net
assets
of
the
Fund
as
follows:
International
Equity
Series pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to TIC based
on the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
June
30,
2026,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
Under
a
subadvisory
agreement,
FTIC,
an
affiliate
of
TIC,
provides
subadvisory
services
to
Foreign
Smaller
Companies
Series.
The
subadvisory
fee
is
paid
by
TIC
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
TIC,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by TIC
based
on
each
of the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. The
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Funds
based
upon
relative
assets
and
relative
transactions. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Annualized
Fee
Rate
Net
Assets
0.950%
Up
to
and
including
$500
million
0.930%
Over
$500
million,
up
to
and
including
$1
billion
0.910%
Over
$1
billion,
up
to
and
including
$5
billion
0.890%
Over
$5
billion,
up
to
and
including
$10
billion
0.870%
Over
$10
billion,
up
to
and
including
$15
billion
0.850%
In
excess
of
$15
billion
Annualized
Fee
Rate
Net
Assets
0.775%
Up
to
and
including
$500
million
0.755%
Over
$500
million,
up
to
and
including
$1
billion
0.735%
Over
$1
billion,
up
to
and
including
$5
billion
0.715%
Over
$5
billion,
up
to
and
including
$10
billion
0.695%
Over
$10
billion,
up
to
and
including
$15
billion
0.675%
In
excess
of
$15
billion
Foreign
Smaller
Companies
Series
International
Equity
Series
Gross
effective
investment
management
fee
rate
....................................
0.950%
0.775%
3.
Transactions
with
Affiliates
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
20
ftinstitutional.com
Semiannual
Report
For
the
period
ended
June
30,
2026,
the Funds
paid
transfer
agent
fees
as
noted
in
the
Statements of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
International
Equity
Series'
Service
shares
may
pay
up
to
0.15%
of
average
daily
net
assets
for
sub-transfer
agency
fees
as
noted
in
the
Statements
of
Operations.
d.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
"Controlled
Affiliate"
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund's
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees,
if
applicable, paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
June
30,
2026,
investments
in
affiliated
management
investment
companies
were
as
follows:
Foreign
Smaller
Companies
Series
International
Equity
Series
Transfer
agent
fees
..........................................................
$3,740
$9,981
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Foreign
Smaller
Companies
Series
Non-Controlled
Affiliates
Dividends
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.597%
............
$-
$2,466,432
$(1,755,375)
$-
$-
$711,057
711,057
$4,916
Non-Controlled
Affiliates
Income
from
securities
loaned
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.597%
............
$-
$2,005,745
$(1,962,585)
$-
$-
$43,160
43,160
$4,432
Total
Affiliated
Securities
...
$-
$4,472,177
$(3,717,960)
$-
$-
$754,217
$9,348
International
Equity
Series
Non-Controlled
Affiliates
Dividends
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.597%
............
$695,616
$13,015,468
$(13,248,740)
$-
$-
$462,344
462,344
$27,580
3.
Transactions
with
Affiliates
(continued)
c.
Transfer
Agent
Fees
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
21
ftinstitutional.com
Semiannual
Report
e.
Waiver
and
Expense
Reimbursements
TIC has
contractually
agreed
in
advance
to
limit
the
investment
management
fees
for
International
Equity
Series
to
0.74%
of
the
average
daily
net
assets
of
the
Fund
until
April
30,
2027.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
4.
Income
Taxes
At
June
30,
2026,
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,
wash
sales,
EU
reclaims,
passive
foreign
investment
company
shares,
foreign
capital
gains
tax
and
derivative
financial
instruments.
5.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
June
30,
2026,
were
as
follows:
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
International
Equity
Series
(continued)
Non-Controlled
Affiliates
Income
from
securities
loaned
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.597%
............
$2,933,669
$9,422,564
$(10,833,218)
$-
$-
$1,523,015
1,523,015
$17,728
Total
Affiliated
Securities
...
$3,629,285
$22,438,032
$(24,081,958)
$-
$-
$1,985,359
$45,308
Foreign
Smaller
Companies
Series
International
Equity
Series
a
a
a
Cost
of
investments
.........................................................
$13,982,750
$42,513,499
Unrealized
appreciation
.......................................................
$6,538,605
$20,404,247
Unrealized
depreciation
.......................................................
(1,618,127)
(2,907,762)
Net
unrealized
appreciation
(depreciation)
.........................................
$4,920,478
$17,496,485
Foreign
Smaller
Companies
Series
International
Equity
Series
Purchases
................................................................
$2,851,320
$11,793,192
Sales
....................................................................
$10,335,980
$16,935,100
3.
Transactions
with
Affiliates
(continued)
d.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
22
ftinstitutional.com
Semiannual
Report
At
June
30,
2026,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
6.
Shareholder
Concentrations
Foreign
Smaller
Companies
Series has
a
concentration
of
shareholders
holding
a
significant
percentage
of
shares
outstanding.
Investment
activities
of
these
shareholders
could
have
a
material
impact
on
the
Fund.
At
June
30,
2026,
the
Fund
had
one
unaffiliated
shareholder
holding
78%
of
the
Fund's
outstanding
shares.
7.
Other
Derivative
Information
For
the
period
ended
June
30,
2026
,
the
effect
of
derivative
contracts
in
the
Statements
of
Operations
was
as
follows:
For
the
period
ended
June
30,
2026,
the
average
month
end
notional
amount
of
futures
contracts
represented
$3,502,768.
See
Note
1(c) regarding
derivative
financial
instruments.
8.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
Ongoing
or
threatened
military
conflicts
throughout
the
world
may
cause
significant
market
disruptions
and
volatility.
The
hostilities
and
sanctions
resulting
from
those
conflicts
may
also
have
a
significant
impact
on
certain
investments
of
the
Fund
as
well
as
the
Fund's
performance
and
liquidity.
Foreign
Smaller
Companies
Series
International
Equity
Series
Securities
lending
transactions
a
:
Equity
investments
b
..........................................................
$43,160
$1,523,015
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Period
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Period
International
Equity
Series
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
appreciation
(depreciation)
on:
Equity
contracts
..............
Futures
contracts
$349,025
Futures
contracts
$(36,576)
Total
.......................
$349,025
$(36,576)
5.
Investment
Transactions
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
23
ftinstitutional.com
Semiannual
Report
Certain
investments
in
Chinese
companies
are
made
through
a
special
structure
known
as
a
VIE.
In
a
VIE
structure,
foreign
investors,
such
as
the
Funds,
will
only
own
stock
in
a
shell
company
rather
than
directly
in
the
VIE,
which
must
be
owned
by
Chinese
nationals
(and/or
Chinese
companies)
to
obtain
the
licenses
and/or
assets
required
to
operate
in
a
restricted
or
prohibited
sector
in
China.
The
value
of
the
shell
company
is
derived
from
its
ability
to
consolidate
the
VIE
into
its
financials
pursuant
to
contractual
arrangements
that
allow
the
shell
company
to
exert
a
degree
of
control
over,
and
obtain
economic
benefits
arising
from,
the
VIE
without
formal
legal
ownership.
While
VIEs
are
a
longstanding
industry
practice
and
are
well
known
by
Chinese
officials
and
regulators,
the
structure
historically
has
not
been
formally
recognized
under
Chinese
law
and
it
is
uncertain
whether
Chinese
officials
or
regulators
will
withdraw
their
implicit
acceptance
of
the
structure.
It
is
also
uncertain
whether
the
contractual
arrangements,
which
may
be
subject
to
conflicts
of
interest
between
the
legal
owners
of
the
VIE
and
foreign
investors,
would
be
enforced
by
Chinese
courts
or
arbitration
bodies.
Prohibitions
of
these
structures
by
the
Chinese
government,
or
the
inability
to
enforce
such
contracts,
from
which
the
shell
company
derives
its
value,
would
likely
cause
the
VIE-structured
holding(s)
to
suffer
significant,
detrimental,
and
possibly
permanent
losses,
and
in
turn,
adversely
affect
the Funds'
returns
and
net
asset
value.
9.
Upcoming
Liquidation
On
May
19,
2026,
the
Board
approved
a
proposal
to
liquidate
the
Foreign
Smaller
Companies
Series
Fund.
Effective,
June
26,
2026,
the
Fund
was
closed
to
all
new
investments.
The
Fund
is
scheduled
to
liquidate
on
or
about
October
9,
2026.
On
May
19,
2026,
the
Board
approved
a
proposal
to
liquidate
the
International
Equity
Series
Fund.
Effective,
June
26,
2026,
the
Fund
was
closed
to
all
new
investments.
The
Fund
is
scheduled
to
liquidate
on
or
about
August
7,
2026.
10.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.995
billion
(Global
Credit
Facility)
which
matures
on
January
29,
2027.
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
Funds
may,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
June
30,
2026,
the
Funds
did
not
use
the
Global
Credit
Facility.
11.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' 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 Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
8.
Concentration
of
Risk
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
24
ftinstitutional.com
Semiannual
Report
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
June
30,
2026,
in
valuing
the
Funds'
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Foreign
Smaller
Companies
Series
Assets:
Investments
in
Securities:
a
Common
Stocks
:
Austria
...............................
$
159,039
$
245,121
$
-
$
404,160
Bahamas
.............................
444,837
-
-
444,837
Brazil
................................
567,143
-
-
567,143
Canada
..............................
828,389
-
-
828,389
China
...............................
-
325,863
-
325,863
France
...............................
-
648,953
-
648,953
Germany
.............................
-
661,606
-
661,606
Hong
Kong
...........................
-
474,284
-
474,284
Ireland
...............................
-
405,277
-
405,277
Israel
................................
-
276,186
-
276,186
Italy
.................................
353,525
1,311,945
-
1,665,470
Japan
...............................
-
3,749,610
-
3,749,610
Mexico
..............................
284,181
-
-
284,181
New
Zealand
..........................
-
269,293
-
269,293
Norway
..............................
-
294,844
-
294,844
Philippines
............................
-
275,036
-
275,036
Singapore
............................
-
209,417
-
209,417
South
Korea
..........................
-
1,583,841
-
1,583,841
Switzerland
...........................
-
483,843
-
483,843
Taiwan
...............................
-
849,945
-
849,945
Thailand
.............................
-
90,450
-
90,450
United
Kingdom
........................
1,330,713
1,259,493
-
2,590,206
United
States
..........................
570,786
-
-
570,786
Management
Investment
Companies
.........
195,391
-
-
195,391
Short
Term
Investments
...................
754,217
-
-
754,217
Total
Investments
in
Securities
...........
$5,488,221
$13,415,007
b
$-
$18,903,228
International
Equity
Series
Assets:
Investments
in
Securities:
a
Common
Stocks
:
Australia
.............................
-
571,886
-
571,886
Canada
..............................
2,652,994
-
-
2,652,994
China
...............................
802,926
1,959,318
-
2,762,244
Denmark
.............................
-
1,098,905
-
1,098,905
France
...............................
-
3,932,810
-
3,932,810
Germany
.............................
-
5,781,494
-
5,781,494
Hong
Kong
...........................
-
900,875
-
900,875
India
................................
-
1,383,911
-
1,383,911
Japan
...............................
1,279,992
5,282,987
-
6,562,979
Netherlands
...........................
-
5,301,569
-
5,301,569
Norway
..............................
-
1,029,480
-
1,029,480
South
Korea
..........................
-
3,991,488
-
3,991,488
Switzerland
...........................
1,365,031
-
-
1,365,031
Taiwan
...............................
-
2,863,559
-
2,863,559
United
Kingdom
........................
980,636
8,956,204
-
9,936,840
United
States
..........................
3,520,013
4,368,547
-
7,888,560
Short
Term
Investments
...................
1,985,359
-
-
1,985,359
Total
Investments
in
Securities
...........
$12,586,951
$47,423,033
c
$-
$60,009,984
11.
Fair
Value
Measurements
(continued)
Templeton
Institutional
Funds
Notes
to
Financial
Statements
(unaudited)
25
ftinstitutional.com
Semiannual
Report
12.
Operating
Segments
Each
Fund
operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
The chief
investment
officer
to
the
Fund
within the
Funds'
investment
manager
serves
as
the
Chief
Operating
Decision
Maker
("CODM")
and is
responsible
for
evaluating each
Fund's
operating
results
and
allocating
resources
in
accordance
with each
Fund's
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the
financial
statements.
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the
Statements
of
Assets
and
Liabilities
and
the
Statements
of
Operations,
along
with
the
related
notes
to
the
financial
statements.
The
Schedules
of
Investments
provides
details
of
the
Funds'
investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the
Financial
Highlights.
13.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
foreign
securities
valued
at
$13,415,007,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$47,423,033,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Selected
Portfolio
ADR
American
Depositary
Receipt
ETF
Exchange-Traded
Fund
REIT
Real
Estate
Investment
Trust
11.
Fair
Value
Measurements
(continued)
Templeton
Institutional
Funds
26
ftinstitutional.com
Semiannual
Report
TEMPLETON
INSTITUTIONAL
FUNDS
Foreign
Smaller
Companies
Series
International
Equity
Series
(each
a
Fund)
At
an
in-person
meeting
held
on
May
18-19,
2026
(Meeting),
the
Board
of
Trustees
(Board)
of
Templeton
Institutional
Funds
(Trust),
including
a
majority
of
the
trustees
who
are
not
"interested
persons"
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Templeton
Investment
Counsel,
LLC
(TICL)
and
the
Trust,
on
behalf
of
each
Fund,
and
an
investment
sub-advisory
agreement
between
TICL
and
Franklin
Templeton
Investments
Corp.
(Sub-Adviser),
an
affiliate
of
TICL,
on
behalf
of
the
Foreign
Smaller
Companies
Series
(each
a
Management
Agreement),
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
to
consider
the
renewal
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
TICL
and
the
Sub-Adviser
are
each
referred
to
herein
as
a
Manager.
At
the
Meeting,
management
presented
a
proposal
for
the
liquidation
of
each
Fund,
which
had
failed
to
attract
sufficient
assets
to
remain
competitive.
To
provide
management
flexibility
with
respect
to
such
liquidations,
the
Board
considered
and
approved
each
Management
Agreement
for
an
additional
one-year
period.
In
considering
the
continuance
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
each
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Managers
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters,
and
then
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Remuneration
to
officers
is
paid
by
the
Funds'
investment
manager
according
to
the
terms
of
the
agreement.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Templeton
Institutional
Funds
27
ftinstitutional.com
Semiannual
Report
met
with
management
to
request
additional
information
that
the
Independent
Trustees
also
considered
prior
to
and
at
the
Meeting.
The
Board
further
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
each
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
each
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined,
through
the
exercise
of
its
business
judgment,
that
the
terms
of
the
Management
Agreements
are
fair
and
reasonable
and
that
the
continuance
of
each
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board's
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
the
information
it
received
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
each
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
each
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
each
Manager
and
its
affiliates;
and
management
fees
charged
by
each
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management's
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
FT's
regular
updates
to
the
Board
on
strategic
initiatives,
ongoing
attention
to
the
service
level
quality
of
third-party
service
providers,
ongoing
efforts
to
modernize
its
mutual
fund
lineup,
mutual
fund
to
ETF
conversions,
integration
of
private
market
investments
into
existing
mutual
funds,
creation
of
additional
blockchain-compatible
money
market
funds,
and
sharpening
of
its
active,
income-oriented
offerings,
along
with
the
impact
on
FT
of
team
integrations
and
staff
reductions.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
the
Manager's
parent,
Franklin
Templeton,
Inc.
(FTI),
FTI's
continued
growth
of
its
global,
multi-asset
franchise,
and
its
commitment
to
the
mutual
fund
business.
The
Board
further
noted
FTI's
continued
reassessment
of
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
FTI's
focus
on
technology-driven
transformation,
expansion
of
its
private
market
investment
capabilities
and
global
alternatives
platform,
and
leveraging
of
artificial
intelligence
(AI),
blockchain
and
digital
wealth
platforms.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
each
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
December
31,
2025.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund's
performance
results
is
below.
Templeton
Institutional
Funds
28
ftinstitutional.com
Semiannual
Report
Foreign
Smaller
Companies
Series
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
international
small-/mid-cap
growth
funds.
The
Board
noted
that
the
Fund's
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
Management
explained
that
stock
selection
was
the
primary
detractor
from
relative
performance.
The
Board
also
noted
that
the
Fund
only
had
approximately
$24.1
million
in
assets
under
management
as
of
December
31,
2025.
Management
proposed
and
the
Board
approved
at
the
Meeting
the
liquidation
of
the
Fund
on
or
about
September
11,
2026.
The
Board
concluded
that
the
Fund's
Management
Agreements
should
be
continued
for
an
additional
one-year
period
in
order
to
effectuate
the
liquidation
of
the
Fund.
International
Equity
Series
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
international
large-cap
value
funds.
The
Board
noted
that
the
Fund's
annualized
total
return
for
the
one-,
five-
and
10-
year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
three-year
period
was
above
the
median
of
its
Performance
Universe.
Management
noted
that
the
Fund
pursues
a
core
value
approach
compared
to
the
deeper
value
orientation
of
the
peer
group.
The
Board
also
noted
that
the
Fund
only
had
approximately
$59
million
in
assets
under
management
as
of
December
31,
2025.
Management
proposed
and
the
Board
approved
at
the
Meeting
the
liquidation
of
the
Fund
on
or
about
August
7,
2026.
The
Board
concluded
that
the
Fund's
Management
Agreement
should
be
continued
for
an
additional
one-year
period
in
order
to
effectuate
the
liquidation
of
the
Fund.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund's
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund's
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges
(as
applicable),
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for:
(i)
Institutional
Class
or
Class
I
shares,
as
applicable
for
the
other
funds
in
the
Foreign
Smaller
Companies
Series'
Expense
Group
with
multiple
classes
of
shares,
and
(ii)
Primary
shares
for
the
International
Equity
Series
and
for
Institutional
Class,
Class
I
or
Class
Y
shares,
as
applicable,
for
the
other
funds
in
the
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
Foreign
Smaller
Companies
Series
-
The
Expense
Group
for
the
Fund
included
the
Fund,
11
other
international
small-/mid-
cap
growth
funds
and
one
international
small-/mid-cap
core
fund.
The
Board
noted
that
the
Management
Rate
was
below
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
above
the
median
of
its
Expense
Group.
The
Board
noted
that
the
Sub-Adviser
is
paid
by
TICL
out
of
the
management
fee
TICL
receives
from
the
Fund
and
that
the
allocation
of
the
fee
between
TICL
and
the
Sub-Adviser
reflected
the
services
provided
by
each
to
the
Fund.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
and
the
sub-advisory
fee
paid
to
the
Sub-Adviser
are
reasonable.
International
Equity
Series
-
The
Expense
Group
for
the
Fund
included
the
Fund
and
11
other
international
large-cap
value
funds.
The
Board
noted
that
the
Management
Rate
was
below
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
above
the
median
of
its
Expense
Group.
The
Board
further
noted
that
the
Management
Rate
reflected
a
management
fee
waiver.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Templeton
Institutional
Funds
29
ftinstitutional.com
Semiannual
Report
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
TICL
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
that
addresses
the
overall
profitability
of
FT's
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2025,
being
the
most
recent
fiscal
year-end
for
FTI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Funds'
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
an
independent
registered
public
accounting
firm
has
been
engaged
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Funds'
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management's
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
each
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management's
outsourcing
of
certain
operations,
which
effort
has
required
considerable
upfront
expenditures
by
each
Manager,
but
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management's
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
each
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
each
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent,
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
each
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund's
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund's
shareholders
by
reducing
the
Fund's
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Managers'
views
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Managers
incur
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
each
Fund
does
not
currently
have
an
asset
size
that
would
likely
enable
the
Fund
to
achieve
economies
of
scale,
but
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
each
Manager
and
its
affiliates,
each
Fund's
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuance
of
each
Management
Agreement
for
an
additional
one-year
period.
ZTIF-SFSOI
08/26
©
2026
Franklin
Templeton.
All
rights
reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
| ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 14. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | The Registrants acknowledge the Staff's comment. In future filings on Form N-CSR, the certifications required by Rule 30a-2 and Item 19(a)(3) will include the designations "Principal Executive Officer" and "Principal Financial Officer" in the signature blocks, reflecting the capacity in which each signatory executes the certification, in conformity with the language of the Rule and Form N-CSR. The Registrants may also include each signatory's actual title with respect to the Funds alongside the required designation. |
| (b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are likely to materially affect the Registrant's internal control over financial reporting. |
| ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| ITEM 19. | EXHIBITS. |
(a) (1) Not applicable.
Exhibit 99.CODE ETH
Exhibit 99.CERT
Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.
Templeton Institutional Funds
| By: | /s/ Christopher Kings | |
| Christopher Kings | ||
| Chief Executive Officer - Finance and Administration |
| Date: | August 27, 2026 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Christopher Kings | |
| Christopher Kings | ||
| Chief Executive Officer - Finance and Administration |
| Date: | August 27, 2026 | |
| By: | /s/ Jeffrey White | |
| Jeffrey White | ||
| Chief Financial Officer, Chief Accounting Officer and Treasurer |
| Date: | August 27, 2026 |
Templeton Institutional Funds published this content on August 28, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 28, 2026 at 11:08 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]