Templeton Institutional Funds NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

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. 2^nd Street, Fort Lauderdale, FL 33301-1923

(Address of principal executive offices) (Zip code)

Craig S. Tyle, 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: 12/31

Date of reporting period: 6/30/21

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.

Not Applicable

SEMIANNUAL

REPORT

Templeton

Institutional

Funds

June

30,

2021

Foreign

Smaller

Companies

Series

International

Equity

Series

Not

FDIC

Insured

May

Lose

Value

Bank

Guarantee

ftinstitutional.com

Semiannual

Report

Contents

Semiannual

Report

Economic

and

Market

Overview

Foreign

Smaller

Companies

Series

International

Equity

Series

Financial

Highlights

and

Statements

Investments

Financial

Statements

Notes

Financial

Statements

Shareholder

Information

Visit

ftinstitutional.com

for

fund

updates,

access

your

account,

find

investment

insights.

ftinstitutional.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

measured

the

MSCI

All

Country

World

Index-NR

(net

tax

withholding

when

dividends

are

paid),

posted

+12.30%

total

return

for

the

six

months

ended

June

30,

2021.

Global

equities

benefited

from

monetary

and

fiscal

stimulus

measures,

rebounding

economic

activity

and

easing

novel

coronavirus

(COVID-19)

pandemic

restrictions

many

regions.

The

implementation

vaccination

programs

and

additional

fiscal

stimulus

measures

led

many

equity

markets

reach

new

all-time

price

highs.

the

U.S.,

the

economy

continued

recover

and

equities

rallied

amid

accommodative

monetary

policy,

additional

fiscal

stimulus

measures

and

ongoing

vaccination

programs.

The

lifting

many

COVID-19

restrictions

and

strong

consumer

spending

also

supported

the

economy.

Gross

domestic

product

(GDP)

growth

accelerated

2021’s

first

quarter,

with

total

economic

output

nearly

reaching

pre-

pandemic

levels.

The

rebound

corporate

earnings

and

progress

toward

bipartisan

infrastructure

plan

further

bolstered

investor

sentiment.

The

U.S.

Federal

Reserve

kept

the

federal

funds

target

rate

record-low

range

0.00%–0.25%

and

continued

its

program

open-ended

bond

purchases

help

keep

markets

functioning.

The

economic

recovery

the

eurozone

was

relatively

weak,

quarter-over-quarter

GDP

growth

contracted

during

2021’s

first

quarter.

GDP

growth

rates

were

mostly

negative

among

the

region’s

largest

economies

amid

renewed

lockdowns,

delays

COVID-19

vaccine

distribution

and

weak

consumer

spending.

Nevertheless,

optimism

that

successful

vaccine

programs

would

lift

global

growth

helped

European

developed

market

equities,

measured

the

MSCI

Europe

Index-NR,

post

+11.80%

total

return

for

the

six

months

under

review.

Asian

developed

and

emerging

market

equities,

measured

the

MSCI

All

Country

Asia

Index-NR,

posted

+4.54%

total

return

for

the

six-month

period.

The

region’s

economic

recovery

was

pressured

weak

domestic

demand,

most

notably

China,

despite

improvement

manufacturing

and

exports.

Asian

equity

markets

experienced

volatility

near

period-end

due

inflation

concerns,

rising

COVID-19

infection

rates

many

countries,

especially

India,

and

renewed

lockdowns.

Global

emerging

market

stocks,

measured

the

MSCI

Emerging

Markets

Index-NR,

posted

+7.45%

total

return

for

the

six

months

under

review.

The

recovery

oil

and

industrial

metals

prices

supported

global

emerging

market

equities.

Late

the

period,

higher

COVID-19

cases

some

countries,

limited

vaccine

rollouts

and

concerns

about

rising

interest

rates

and

inflation

amid

higher

commodity

prices

dampened

investor

enthusiasm

global

emerging

market

equities.

The

foregoing

information

reflects

our

analysis

and

opinions

June

30,

2021.

The

information

not

complete

analysis

every

aspect

any

market,

country,

industry,

security

fund.

Statements

fact

are

from

sources

considered

reliable.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

ftinstitutional.com

Semiannual

Report

Foreign

Smaller

Companies

Series

This

semiannual

report

for

Foreign

Smaller

Companies

Series

(Fund)

covers

the

period

ended

June

30,

2021

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

growth.

Under

normal

market

conditions,

the

Fund

invests

least

80%

its

net

assets

investments

smaller

companies

located

outside

the

U.S.,

including

emerging

markets.

For

purposes

this

80%

policy,

the

Fund

defines

smaller

companies

those

with

market

capitalizations

that

not

exceed

billion.

However,

under

normal

conditions,

when

making

initial

purchase

securities

company,

will

only

invest

securities

companies

with

market

capitalization

not

than

billion.

Once

security

qualifies

for

initial

purchase,

continues

qualify

for

additional

purchases

long

held

the

Fund,

provided

that

the

issuer’s

market

capitalization

does

not

exceed

billion.

Performance

Overview

The

Fund

posted

+12.77%

cumulative

total

return

for

the

six

months

under

review.

comparison,

the

Fund’s

new

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)

USA

Small

Cap

Index-NR,

which

measures

performance

global

developed

and

emerging

market

small-cap

equities,

excluding

the

U.S.,

posted

+12.24%

cumulative

total

return.

Also

comparison,

the

Fund’s

former

benchmark,

the

MSCI

ACWI

USA

Small

Cap

Index,

posted

+12.47%

cumulative

total

return.

The

MSCI

ACWI

USA

Small

Cap

Index-NR

(net

dividend

tax

withholding)

replaced

the

MSCI

USA

Small

Cap

Index

(gross

taxes

dividends)

primary

benchmark

because

the

investment

manager

believes

that

the

actual

withholding

rates

for

the

Fund

are

closer

the

assumptions

the

MSCI

ACWI

USA

Small

Cap

Index-NR.

Please

note,

index

performance

information

provided

for

reference

and

not

attempt

track

the

index

but

rather

undertake

investments

the

basis

fundamental

research.

You

can

find

the

Fund’s

long-term

performance

data

the

Performance

Summary

beginning

page

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

gain

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

ftinstitutional.com

call

Franklin

Templeton

Institutional

Services

representative

(800)

321-8563.

Investment

Strategy

When

choosing

equity

investments

for

the

Fund,

apply

bottom-up,

value-oriented,

long-term

approach,

focusing

the

market

price

company’s

securities

relative

our

evaluation

the

company’s

long-term

earnings,

asset

value

and

cash

flow

potential.

This

evaluation

includes

assessment

the

potential

impacts

material

environmental,

social

and

governance

(ESG)

factors

the

long-term

risk

and

return

profile

company.

also

consider

company’s

price/earnings

ratio,

profit

margins

and

liquidation

value.

Manager’s

Discussion

During

the

six

months

under

review,

notable

contributors

the

Fund’s

performance

relative

the

MSCI

ACWI

USA

Small

Cap

Index-NR

included

stock

selection

and

overweighting

the

consumer

discretionary

sector,

stock

selection

and

underweighting

the

health

care

sector

and

stock

selection

the

financials

sector.

contrast,

key

detractors

from

the

Fund’s

relative

performance

included

stock

selection

the

industrials

and

materials

sectors

and

stock

selection

and

overweighting

the

consumer

staples

sector.

Regionally,

key

contributors

the

Fund’s

relative

performance

included

stock

selection

Europe,

notably

the

U.K.,

Sweden

and

the

Netherlands,

well

stock

selection

Asia,

especially

China,

Thailand

Geographic

Composition

6/30/21

Total

Net

Assets

Europe

45.4%

Asia

41.4%

North

America

5.0%

Latin

America

Caribbean

3.5%

Other

0.8%

Short-Term

Investments

Other

Net

Assets

3.9%

Source:

Morningstar.

The

index

unmanaged

and

includes

reinvestment

any

income

distributions.

does

not

reflect

any

fees,

expenses

sales

charges.

One

cannot

invest

directly

index,

and

index

not

representative

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

principal

amount,

and

names

all

portfolio

holdings

are

listed

the

Fund’s

Statement

Investments

(SOI).

The

SOI

begins

page

Foreign

Smaller

Companies

Series

ftinstitutional.com

Semiannual

Report

and

Hong

Kong.

contrast,

key

detractors

included

stock

selection

the

Latin

America

and

Caribbean

region,

particularly

Brazil.

Looking

ahead,

continue

prioritize

resilience,

diversification

and

price-consciousness

our

investment

selection

and

portfolio

construction.

*Categories

within

the

Other

category

are

listed

full

the

Fund's

Statement

Investments

(SOI),

which

can

found

later

this

report.

The

only

other

significant

sector

detractor

from

relative

results

was

stock

selection

information

technology

(IT),

pressured

our

position

South

Korea-based

electronics

products

and

semiconductor

manufacturer

Samsung

Electronics,

whose

price

declined

slightly

amid

little

news

flow.

our

view,

Samsung

remains

key

beneficiary

demand

uptrend

memory

chips.

Other

positive

catalysts

include

long-term

opportunities

the

firm’s

foundry

business,

optionality

around

capital

deployment

and

competitive

advantage

from

being

one

the

three

semiconductor

manufacturers

globally

that

can

compete

the

leading

edge.

Overall,

believe

Samsung

well-run

global

technology

leader

with

strong

balance

sheet.

Other

key

relative

detractors

included

our

positions

Japan-

based

beverages

manufacturer

Kirin

Holdings

(not

held

period-end),

China-based

e-commerce

company

Alibaba

Group

Holding

and

Japan-based

construction

machinery

firm

Komatsu.

Turning

contributors,

stock

selection

the

industrials

sector

bolstered

relative

results.

Japanese

industrial

equipment

firm

Hitachi

drove

sector

performance

amid

progress

with

its

ongoing

restructuring

initiatives.

Hitachi’s

business

also

continued

perform

well,

and

believe

could

benefit

from

increasing

demand

for

digital

transformation.

our

view,

Hitachi

underappreciated

Japanese

restructuring

story

with

vastly

improved

Portfolio

Composition

6/30/21

Total

Net

Assets

Oil,

Gas

Consumable

Fuels

7.3%

Pharmaceuticals

5.9%

Banks

5.7%

Metals

Mining

5.1%

Multi-Utilities

5.1%

Industrial

Conglomerates

4.8%

Automobiles

4.3%

Hotels,

Restaurants

Leisure

4.2%

Semiconductors

Semiconductor

Equipment

4.0%

Diversified

Telecommunication

Services

3.8%

Construction

Engineering

3.1%

Textiles,

Apparel

Luxury

Goods

3.1%

Internet

Direct

Marketing

Retail

3.1%

Technology

Hardware,

Storage

Peripherals

3.0%

Other*

32.0%

Short-Term

Investments

Other

Net

Assets

5.5%

International

Equity

Series

ftinstitutional.com

Semiannual

Report

governance,

value

accretive

divestments

and

merger

and

acquisition

activities,

well

improving

profitability

and

business

mix.

Overall,

Hitachi

continuing

evolve

into

simplified,

higher-return

company

generating

stable

cash

flows.

Based

our

long-term

fundamental

expectations,

continue

believe

the

stock

significantly

undervalued

recent

levels.

Stock

selection

the

utilities,

communication

services,

consumer

discretionary

and

energy

sectors

also

positively

contributed

relative

results

during

the

period.

From

these

sectors,

Japanese

light-truck

manufacturer

Isuzu

Motors

(consumer

discretionary)

was

the

top

contributor.

Its

rallied

strongly

after

company

management

reported

better-

than-expected

earnings,

raised

the

dividend

payout

ratio

and

projected

sharply

higher

full-year

profits.

period-end,

the

company’s

guidance

for

the

fiscal

year

ending

March

2022

implies

return

mid-cycle

unit

volumes,

which

leaves

the

stock

trading

what

consider

undemanding

valuations.

our

view,

Isuzu

high

return-on-equity

business

and

market

leader

niche

smaller-sized

vehicles

whose

strong

technological

partnerships

with

Toyota

and

Volvo

should

help

take

advantage

the

transition

clean

energy

future.

The

company

has

good

growth

potential,

our

analysis,

across

diverse

range

emerging

markets

and

improving

shareholder

returns

through

healthy

dividends

and

stock

buybacks.

Elsewhere,

French

multi-utilities

company

Veolia

Environnement

finished

the

top

relative

contributor

utilities,

German

mobile

telecommunications

incumbent

Deutsche

Telekom

the

top

relative

contributor

communication

services

and

U.K.-based

oil

and

gas

major

the

top

relative

contributor

energy.

From

regional

standpoint,

notable

contributors

the

Fund’s

relative

performance

included

stock

selection

and

underweighting

Asia,

led

Japan

and

China,

well

stock

selection

and

overweighting

Europe,

led

Norway

and

the

U.K.

contrast,

stock

selection

North

America

detracted

from

relative

results,

due

weakness

among

the

Fund’s

few

Canadian

holdings.

believe

the

best

long-term

investment

opportunities

will

not

fall

neatly

into

the

traditional

factor

labels

(that

is,

growth,

value,

quality)

that

dominated

the

narrative

during

the

six

months

under

review.

Our

“compound

value”

approach

combines

price

discipline

with

forward-looking

fundamental

analysis

find

opportunities

across

range

different

types

value.

believe

the

key

investing

today

avoid

the

“double

bubble”

over-indebted

value

stocks

and

hugely

overpriced

growth

stocks.

our

lifetimes,

have

not

seen

situation

today

which

both

the

value

and

growth

indexes

are

price

bubble.

Against

this

backdrop,

have

built

framework

for

thinking

about

stocks

and

building

portfolios

that

leverages

the

benefits

Templeton’s

proven

valuation

discipline,

while

also

considering

other

factors

that

can

influence

prices.

This

how

build

dynamic

portfolios

with

genuine

diversification

across

different

types

value.

important

recognize

the

effect

currency

movements

the

Fund’s

performance.

general,

the

value

the

U.S.

dollar

goes

compared

with

foreign

currency,

investment

traded

that

foreign

currency

will

down

value

because

will

worth

fewer

U.S.

dollars.

This

can

have

negative

effect

Fund

performance.

Conversely,

when

the

U.S.

dollar

weakens

relation

foreign

currency,

investment

traded

that

foreign

currency

will

increase

value,

which

can

contribute

Fund

performance.

For

the

six

months

ended

June

30,

2021,

the

U.S.

dollar

rose

value

relative

most

currencies.

result,

the

Fund’s

performance

was

negatively

affected

the

portfolio’s

investment

predominantly

securities

with

non-U.S.

currency

exposure.

Top

Holdings

6/30/21

Company

Industry

Country

Total

Net

Assets

Deutsche

Telekom

3.8%

Diversified

Telecommunication

Services,

Germany

Hitachi

Ltd.

3.5%

Industrial

Conglomerates,

Japan

Samsung

Electronics

Co.

Ltd.

3.0%

Technology

Hardware,

Storage

Peripherals,

South

Korea

E.ON

2.7%

Multi-Utilities,

Germany

plc

2.6%

Oil,

Gas

Consumable

Fuels,

United

Kingdom

Sumitomo

Mitsui

Financial

Group,

Inc.

2.5%

Banks,

Japan

AIA

Group

Ltd.

2.4%

Insurance,

Hong

Kong

Veolia

Environnement

2.4%

Multi-Utilities,

France

BAE

Systems

plc

2.3%

Aerospace

Defense,

United

Kingdom

Sony

Group

Corp.

2.3%

Household

Durables,

Japan

International

Equity

Series

ftinstitutional.com

Semiannual

Report

Thank

you

for

your

continued

participation

International

Equity

Series.

look

forward

serving

your

future

investment

needs.

Antonio

Docal,

CFA

Lead

Portfolio

Manager

Peter

Nori,

CFA

Matthew

Nagle,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

June

30,

2021,

the

end

the

reporting

period.

The

way

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

factors

such

market

and

economic

conditions.

These

opinions

may

not

relied

upon

investment

advice

offer

for

particular

security.

The

information

not

complete

analysis

every

aspect

any

market,

country,

industry,

security

the

Fund.

Statements

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

representation

warranty

their

completeness

accuracy.

Although

historical

performance

guarantee

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

June

30,

2021

International

Equity

Series

ftinstitutional.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

shareholder

would

pay

Fund

dividends,

capital

gain

distributions,

any,

any

realized

gains

the

sale

Fund

shares.

Total

return

reflects

reinvestment

the

Fund’s

dividends

and

capital

gain

distributions,

any,

and

any

unrealized

gains

losses.

Your

dividend

income

will

vary

depending

dividends

interest

paid

securities

the

Fund’s

portfolio,

adjusted

for

operating

expenses

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

portfolio

securities.

Performance

6/30/21

1,2

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

gain

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

ftinstitutional.com

call

Franklin

Templeton

Institutional

Services

representative

(800)

321-8563

Class

Cumulative

Total

Return

Average

Annual

Total

Return

–

Primary

6-Month

+8.74%

1-Year

+34.80%

5-Year

+44.76%

+7.68%

10-Year

+46.20%

+3.87%

Service

6-Month

+8.66%

1-Year

+34.54%

5-Year

+43.61%

+7.51%

10-Year

+43.96%

+3.71%

See

page

for

Performance

Summary

footnotes.

International

Equity

Series

Performance

Summary

ftinstitutional.com

Semiannual

Report

Each

class

available

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

described

the

prospectus.

All

investments

involve

risks,

including

possible

loss

principal.

Foreign

investing

involves

special

risks,

including

currency

fluctuations,

economic

instability

and

political

developments.

Investments

developing

markets

involve

heightened

risks

the

same

factors,

addition

those

associated

with

these

markets’

small

midcap

size

and

lesser

liquidity.

Because

the

Fund

may

invest

companies

specific

region,

including

Europe,

subject

greater

risks

adverse

developments

that

region

and/or

the

surrounding

regions

than

fund

that

broadly

diversified

geographically.

Political,

social

economic

disruptions

the

region,

even

countries

which

the

Fund

not

invested,

may

adversely

affect

the

value

securities

held

the

Fund.

Current

uncertainty

concerning

the

economic

consequences

the

departure

the

U.K.

from

the

European

Union

may

increase

market

volatility.

Value

securities

may

not

increase

price

anticipated

may

decline

further

value.

Derivatives

involve

costs

and

can

create

economic

leverage

the

Fund’s

portfolio

which

may

result

significant

volatility

and

cause

the

Fund

participate

losses

(as

well

gains)

amount

that

significantly

exceeds

the

Fund’s

initial

investment.

Events

such

the

spread

deadly

diseases,

disasters,

and

financial,

political

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

description

the

main

investment

risks.

The

Fund

has

expense

reduction

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

Total

return

was

positively

impacted

the

recognition

tax

reclaims

for

previously

withheld

taxes

dividends

certain

countries

across

the

European

Union

(see

Note

the

Notes

Financial

Statements

section).

Uncertainty

exists

with

respect

future

recognition

additional

European

Union

tax

reclaims.

Total

return

would

have

been

lower

without

recognition

such

tax

reclaims

during

the

year

ended

12/31/20.

Cumulative

total

return

represents

the

change

value

investment

over

the

periods

indicated.

Average

annual

total

return

represents

the

average

annual

change

value

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

any,

has

not

been

annualized.

Figures

are

stated

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

this

report.

periods

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Total

Annual

Operating

Expenses

Class

With

Fee

Waiver

Without

Fee

Waiver

Primary

0.83%

0.87%

Service

0.98%

1.02%

Your

Fund’s

Expenses

International

Equity

Series

ftinstitutional.com

Semiannual

Report

Fund

shareholder,

you

can

incur

two

types

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

Fund

purchases

and

redemptions,

applicable;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

applicable,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

operating

expenses.

The

table

below

shows

ongoing

costs

investing

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

other

mutual

funds.

The

table

assumes

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

the

columns

under

the

heading

“Actual.”

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

Fund

expenses,

used

calculate

the

“Ending

Account

Value”

for

each

class

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

following

these

steps

(

course,

your

account

value

and

expenses

will

differ

from

those

this

illustration

Divide

your

account

value

$1,000

(

your

account

had

$8,600

value,

then

$8,600

$1,000

8.6

Then

multiply

the

result

the

number

the

row

for

your

class

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

$7.50

$64.50

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

the

table,

information

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

the

Fund’s

actual

expense

ratio

and

assumed

rate

return

per

year

before

expenses,

which

not

the

Fund’s

actual

return.

This

information

may

not

used

estimate

the

actual

ending

account

balance

expenses

you

paid

for

the

period,

but

can

help

you

compare

ongoing

costs

investing

the

Fund

with

those

other

funds.

so,

compare

this

hypothetical

example

for

the

class

you

hold

with

the

hypothetical

examples

that

appear

the

shareholder

reports

other

funds.

Please

note

that

expenses

shown

the

table

are

meant

highlight

ongoing

costs

and

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

useful

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

owning

different

funds.

addition,

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

Expenses

are

equal

the

annualized

expense

ratio

for

the

six-month

period

indicated

above—in

the

far

right

column—multiplied

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

181/365

reflect

the

one-half

year

period.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Net

Annualized

Expense

Ratio

Primary

$1,000

$1,087.39

$4.66

$1,020.33

$4.51

0.90%

Service

$1,000

$1,086.56

$5.19

$1,019.82

$5.03

1.00%

Templeton

Institutional

Funds

Financial

Highlights

Foreign

Smaller

Companies

Series

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$23.03

$21.40

$17.96

$25.08

$19.93

$20.90

Income

from

investment

operations

Net

investment

income

.............

0.15

0.17

0.30

0.37

0.30

0.29

Net

realized

and

unrealized

gains

(losses)

2.79

1.74

3.79

(4.97)

6.49

(0.48)

Total

from

investment

operations

........

2.94

1.91

4.09

(4.60)

6.79

(0.19)

Less

distributions

from:

Net

investment

income

..............

—

(0.22)

(0.37)

(0.21)

(0.68)

(0.41)

Net

realized

gains

.................

—

(0.06)

(0.28)

(2.31)

(0.96)

(0.37)

Total

distributions

...................

—

(0.28)

(0.65)

(2.52)

(1.64)

(0.78)

Net

asset

value,

end

period

..........

$25.97

$23.03

$21.40

$17.96

$25.08

$19.93

Total

return

.......................

12.77%

8.95%

22.86%

(18.48)%

34.18%

(0.85)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

..........................

1.02%

1.04%

1.02%

1.01%

0.99%

Expenses

net

waiver

and

payments

affiliates

..........................

1.02%

1.03%

1.02%

1.00%

0.98%

Net

investment

income

...............

1.20%

0.87%

1.48%

1.54%

1.28%

1.44%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$746,593

$725,098

$782,971

$739,576

$1,040,180

$931,879

Portfolio

turnover

rate

................

16.73%

34.89%

39.48%

34.10%

25.97%

21.36%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Templeton

Institutional

Funds

Statement

Investments

(unaudited),

June

30,

2021

Foreign

Smaller

Companies

Series

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Industry

Value

Common

Stocks

95.5%

Bahamas

1.1%

OneSpaWorld

Holdings

Ltd.

........

Diversified

Consumer

Services

868,505

8,415,814

Belgium

3.2%

Barco

......................

Electronic

Equipment,

Instruments

Components

318,619

8,724,279

Fagron

........................

Health

Care

Providers

Services

402,709

8,999,732

Kinepolis

Group

..............

Entertainment

113,682

6,152,350

23,876,361

Brazil

1.8%

Camil

Alimentos

...............

Food

Products

3,279,000

6,286,381

Dias

Branco

................

Food

Products

1,038,600

6,808,370

13,094,751

Canada

3.8%

Canaccord

Genuity

Group,

Inc.

......

Capital

Markets

374,238

4,099,336

Canada

Goose

Holdings,

Inc.

.......

Textiles,

Apparel

Luxury

Goods

103,900

4,540,675

Canadian

Western

Bank

...........

Banks

391,236

10,982,063

Computer

Modelling

Group

Ltd.

......

Energy

Equipment

Services

1,134,704

4,677,022

North

West

Co.,

Inc.

(The)

..........

Food

Staples

Retailing

132,200

3,752,465

28,051,561

China

5.3%

Greatview

Aseptic

Packaging

Co.

Ltd.

Containers

Packaging

5,478,200

2,469,453

JNBY

Design

Ltd.,

Reg

..........

Textiles,

Apparel

Luxury

Goods

2,117,000

3,762,659

Shanghai

Haohai

Biological

Technology

Co.

Ltd.,

144A,

Reg

.........

Biotechnology

564,000

6,920,791

Viva

Biotech

Holdings,

144A,

Reg

Life

Sciences

Tools

Services

6,484,500

8,302,307

a,b

Xiabuxiabu

Catering

Management

China

Holdings

Co.

Ltd.,

144A,

Reg

....

Hotels,

Restaurants

Leisure

2,795,500

2,929,327

Xtep

International

Holdings

Ltd.

......

Textiles,

Apparel

Luxury

Goods

8,182,897

15,417,822

39,802,359

Denmark

0.7%

Matas

A/S

......................

Specialty

Retail

303,669

5,501,355

Finland

2.4%

BasWare

OYJ

...................

Software

80,809

3,805,896

Fiskars

OYJ

Abp

.................

Household

Durables

128,232

2,788,852

Huhtamaki

OYJ

..................

Containers

Packaging

231,255

10,969,826

17,564,574

France

1.3%

Beneteau

....................

Leisure

Products

341,444

5,398,272

Nexans

.....................

Electrical

Equipment

44,479

4,059,115

Solutions

.................

Services

22,923

158,478

9,615,865

Germany

4.7%

Grand

City

Properties

..........

Real

Estate

Management

Development

220,495

5,955,553

Jenoptik

....................

Electronic

Equipment,

Instruments

Components

207,830

5,688,077

Rational

....................

Machinery

10,089

9,141,173

Stabilus

.....................

Machinery

135,810

11,063,637

VIA

Optronics

AG,

ADR

............

Electronic

Equipment,

Instruments

Components

280,400

3,146,088

34,994,528

Templeton

Institutional

Funds

Statement

Investments

(unaudited)

Foreign

Smaller

Companies

Series

(continued)

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Industry

Value

Common

Stocks

(continued)

Greece

0.7%

JUMBO

.....................

Specialty

Retail

317,426

5,346,897

Hong

Kong

3.4%

Johnson

Electric

Holdings

Ltd.

......

Auto

Components

1,207,347

3,110,955

Techtronic

Industries

Co.

Ltd.

.......

Machinery

405,500

7,066,592

Value

Partners

Group

Ltd.

..........

Capital

Markets

8,679,600

5,535,137

VTech

Holdings

Ltd.

..............

Communications

Equipment

888,000

9,344,845

25,057,529

Indonesia

0.7%

Axiata

Tbk

................

Wireless

Telecommunication

Services

27,382,900

5,050,215

Israel

0.7%

Max

Stock

Ltd.

..................

Multiline

Retail

1,478,404

5,598,696

Italy

6.9%

Brunello

Cucinelli

SpA

.............

Textiles,

Apparel

Luxury

Goods

82,941

4,858,874

Interpump

Group

SpA

.............

Machinery

247,506

14,685,874

MARR

SpA

.....................

Food

Staples

Retailing

310,438

7,411,097

Sanlorenzo

SpA

.................

Leisure

Products

393,004

10,827,868

Technogym

SpA

144A,

Reg

......

Leisure

Products

1,047,903

13,390,583

51,174,296

Japan

18.4%

Anicom

Holdings,

Inc.

.............

Insurance

754,100

6,045,834

Asics

Corp.

.....................

Textiles,

Apparel

Luxury

Goods

527,300

13,371,231

Bunka

Shutter

Co.

Ltd.

............

Building

Products

429,500

4,288,304

Dowa

Holdings

Co.

Ltd.

............

Metals

Mining

84,400

3,331,816

Japan,

Inc.

...................

Professional

Services

138,500

4,918,151

Fuji

Oil

Holdings,

Inc.

.............

Food

Products

378,300

9,000,984

Glory

Ltd.

......................

Machinery

242,300

5,032,741

Hosokawa

Micron

Corp.

...........

Machinery

79,900

4,279,625

Idec

Corp.

......................

Electrical

Equipment

251,700

4,755,196

IDOM,

Inc.

.....................

Specialty

Retail

844,900

4,968,828

Meitec

Corp.

....................

Professional

Services

193,400

10,471,930

Morinaga

Co.

Ltd.

..............

Food

Products

82,800

2,648,320

Morita

Holdings

Corp.

.............

Machinery

196,400

2,835,144

Nichiha

Corp.

...................

Building

Products

340,200

8,662,373

Nihon

Parkerizing

Co.

Ltd.

..........

Chemicals

326,400

3,270,318

Nissei

ASB

Machine

Co.

Ltd.

........

Machinery

138,000

6,135,701

Qol

Holdings

Co.

Ltd.

.............

Food

Staples

Retailing

559,200

7,823,519

Shima

Seiki

Manufacturing

Ltd.

......

Machinery

368,500

6,316,208

Square

Enix

Holdings

Co.

Ltd.

.......

Entertainment

77,100

3,807,917

TechnoPro

Holdings,

Inc.

..........

Professional

Services

345,300

8,165,636

Topcon

Corp.

...................

Electronic

Equipment,

Instruments

Components

237,700

3,536,643

Tsumura

Co.

..................

Pharmaceuticals

365,000

11,474,215

Zojirushi

Corp.

..................

Household

Durables

159,900

2,388,103

137,528,737

Netherlands

4.3%

Aalberts

....................

Machinery

63,530

3,421,994

Accell

Group

.................

Leisure

Products

68,405

3,674,649

Arcadis

.....................

Construction

Engineering

104,778

4,296,564

Flow

Traders,

144A,

Reg

.........

Capital

Markets

252,236

10,851,858

a,b

Intertrust

NV,

144A,

Reg

.........

Professional

Services

538,537

9,704,622

31,949,687

Templeton

Institutional

Funds

Statement

Investments

(unaudited)

Foreign

Smaller

Companies

Series

(continued)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Industry

Value

Common

Stocks

(continued)

Norway

1.3%

Sbanken

ASA,

144A,

Reg

........

Banks

443,454

5,521,606

TGS

ASA

......................

Energy

Equipment

Services

333,053

4,247,276

9,768,882

Philippines

0.6%

Century

Pacific

Food,

Inc.

..........

Food

Products

9,584,300

4,590,107

South

Korea

1.8%

BNK

Financial

Group,

Inc.

..........

Banks

751,772

5,152,349

DGB

Financial

Group,

Inc.

..........

Banks

1,008,750

8,317,749

13,470,098

Spain

0.7%

Construcciones

Auxiliar

Ferrocarriles

................

Machinery

121,020

5,110,476

Sweden

4.9%

Cloetta

AB,

...................

Food

Products

711,836

2,125,283

Dometic

Group

AB,

144A

..........

Auto

Components

804,851

13,715,577

Granges

....................

Metals

Mining

755,117

10,488,771

Thule

Group

AB,

144A,

Reg

.......

Leisure

Products

237,350

10,522,012

36,851,643

Switzerland

6.0%

Bucher

Industries

.............

Machinery

25,902

13,563,503

Landis+Gyr

Group

.............

Electronic

Equipment,

Instruments

Components

89,830

6,273,883

Logitech

International

..........

Technology

Hardware,

Storage

Peripherals

54,600

6,602,232

Siegfried

Holding

..............

Life

Sciences

Tools

Services

15,346

14,401,478

Zur

Rose

Group

..............

Food

Staples

Retailing

11,064

4,236,815

45,077,911

Taiwan

9.6%

Chicony

Electronics

Co.

Ltd.

........

Technology

Hardware,

Storage

Peripherals

2,845,037

8,193,861

Giant

Manufacturing

Co.

Ltd.

........

Leisure

Products

868,482

9,907,265

Johnson

Health

Tech

Co.

Ltd.

.......

Leisure

Products

1,891,000

5,712,400

King

Yuan

Electronics

Co.

Ltd.

......

Semiconductors

Semiconductor

Equipment

6,322,000

10,162,406

Merida

Industry

Co.

Ltd.

...........

Leisure

Products

956,000

10,713,428

Nan

Pao

Resins

Chemical

Co.

Ltd.

...

Chemicals

755,000

4,206,997

Nien

Made

Enterprise

Co.

Ltd.

......

Household

Durables

498,000

7,372,963

Primax

Electronics

Ltd.

............

Technology

Hardware,

Storage

Peripherals

2,615,000

5,337,944

Topkey

Corp.

...................

Leisure

Products

614,000

3,452,028

Tripod

Technology

Corp.

...........

Electronic

Equipment,

Instruments

Components

1,448,000

7,000,426

72,059,718

Thailand

1.6%

Hana

Microelectronics

PCL

.........

Electronic

Equipment,

Instruments

Components

5,268,800

11,724,806

United

Kingdom

8.3%

Greggs

plc

.....................

Hotels,

Restaurants

Leisure

220,253

7,928,557

Ibstock

plc,

144A,

Reg

...........

Construction

Materials

1,871,206

5,527,852

Man

Group

plc

..................

Capital

Markets

4,799,198

11,938,713

Oxford

Instruments

plc

............

Electronic

Equipment,

Instruments

Components

204,140

6,530,787

Pagegroup

plc

..................

Professional

Services

876,710

6,779,779

Rathbone

Brothers

plc

............

Capital

Markets

289,410

7,257,868

Stock

Spirits

Group

plc

............

Beverages

2,347,184

8,491,152

Templeton

Institutional

Funds

Statement

Investments

(unaudited)

Foreign

Smaller

Companies

Series

(continued)

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

See

Abbreviations

page

Industry

Value

Common

Stocks

(continued)

United

Kingdom

(continued)

a,b

Watches

Switzerland

Group

plc,

144A

Specialty

Retail

672,022

7,772,085

62,226,793

United

States

1.3%

Axis

Capital

Holdings

Ltd.

..........

Insurance

70,630

3,461,576

IMAX

Corp.

.....................

Entertainment

279,700

6,013,550

9,475,126

Total

Common

Stocks

(Cost

$459,478,148)

.....................................

712,978,785

Preferred

Stocks

0.5%

Brazil

0.5%

Alpargatas

SA,

0.11%

.............

Textiles,

Apparel

Luxury

Goods

381,600

3,848,899

Total

Preferred

Stocks

(Cost

$976,197)

.........................................

3,848,899

Warrants

0.1%

Bahamas

0.1%

OneSpaWorld

Holdings

Ltd.

3/19/24

Diversified

Consumer

Services

262,784

814,630

Total

Warrants

(Cost

$221,371)

................................................

814,630

Total

Long

Term

Investments

(Cost

$460,675,716)

...............................

717,642,314

Short

Term

Investments

1.5%

Industry

Value

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.5%

Money

Market

Funds

1.5%

g,h

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

0.01%

..........

11,384,190

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$11,384,190)

................................................................

11,384,190

Total

Short

Term

Investments

(Cost

$11,384,190

)

................................

11,384,190

Total

Investments

(Cost

$472,059,906)

97.6%

...................................

$729,026,504

Other

Assets,

less

Liabilities

2.4%

.............................................

17,566,708

Net

Assets

100.0%

...........................................................

$746,593,212

Non-income

producing.

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

June

30,

2021,

the

aggregate

value

these

securities

was

$98,921,279,

representing

13.2%

net

assets.

portion

all

the

security

loan

June

30,

2021.

See

Note

1(e).

portion

all

the

security

purchased

delayed

delivery

basis.

See

Note

1(c).

Variable

rate

security.

The

rate

shown

represents

the

yield

period

end.

Templeton

Institutional

Funds

Statement

Investments

(unaudited)

Foreign

Smaller

Companies

Series

(continued)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

See

Note

1(e)

regarding

securities

loan.

See

Note

3(d)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

Templeton

Institutional

Funds

Financial

Highlights

International

Equity

Series

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Primary

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$15.22

$15.54

$14.87

$21.99

$18.65

$19.05

Income

from

investment

operations

Net

investment

income

.............

0.20

1.03

0.64

0.42

0.45

Net

realized

and

unrealized

gains

(losses)

1.13

(0.32)

1.06

(3.66)

3.81

(0.20)

Total

from

investment

operations

........

1.33

0.71

1.70

(3.24)

4.26

0.25

Less

distributions

from:

Net

investment

income

..............

—

(0.67)

(1.02)

(0.42)

(0.64)

(0.46)

Net

realized

gains

.................

—

(0.36)

(0.01)

(3.46)

(0.28)

(0.19)

Total

distributions

...................

—

(1.03)

(3.88)

(0.92)

(0.65)

Net

asset

value,

end

period

..........

$16.55

$15.22

$15.54

$14.87

$21.99

$18.65

Total

return

.......................

8.74%

5.30%

11.57%

(14.87)%

22.92%

1.30%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

..........................

0.94%

0.87%

0.82%

0.80%

0.78%

Expenses

net

waiver

and

payments

affiliates

..........................

0.90%

0.84%

0.82%

0.80%

f,g

0.78%

Net

investment

income

...............

2.44%

7.51%

4.13%

1.98%

2.13%

2.44%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$467,488

$447,139

$1,695,980

$2,785,308

$4,412,494

$4,539,205

Portfolio

turnover

rate

................

21.34%

89.34%

36.83%

25.60%

16.39%

14.88%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.77

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.86%

and

total

return

would

have

been

(0.03)%.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

Templeton

Institutional

Funds

Financial

Highlights

International

Equity

Series

(continued)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Service

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$15.48

$15.79

$14.97

$22.07

$18.72

$19.11

Income

from

investment

operations

Net

investment

income

.............

0.20

1.17

0.98

0.38

0.39

0.42

Net

realized

and

unrealized

gains

(losses)

1.14

(0.47)

0.70

(3.66)

3.85

(0.20)

Total

from

investment

operations

........

1.34

0.70

1.68

(3.28)

4.24

0.22

Less

distributions

from:

Net

investment

income

..............

—

(0.65)

(0.85)

(0.36)

(0.61)

(0.42)

Net

realized

gains

.................

—

(0.36)

(0.01)

(3.46)

(0.28)

(0.19)

Total

distributions

...................

—

(1.01)

(0.86)

(3.82)

(0.89)

(0.61)

Net

asset

value,

end

period

..........

$16.82

$15.48

$15.79

$14.97

$22.07

$18.72

Total

return

.......................

8.66%

5.16%

11.34%

(15.01)%

22.73%

1.15%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

..........................

1.04%

1.01%

0.97%

0.95%

0.93%

Expenses

net

waiver

and

payments

affiliates

..........................

1.00%

0.98%

0.97%

0.95%

f,g

0.93%

Net

investment

income

...............

2.46%

8.42%

3.98%

1.83%

1.98%

2.29%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$682

$448

$700

$5,375

$14,164

$8,624

Portfolio

turnover

rate

................

21.34%

89.34%

36.83%

25.60%

16.39%

14.88%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.78

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

2.77%

and

total

return

would

have

been

(0.14)%.

Total

return

not

annualized

for

periods

less

than

one

year.

Ratios

are

annualized

for

periods

less

than

one

year.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

Templeton

Institutional

Funds

Statement

Investments

(unaudited),

June

30,

2021

International

Equity

Series

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Industry

Value

Common

Stocks

94.5%

Belgium

1.5%

Anheuser-Busch

InBev

SA/NV

......

Beverages

95,275

6,868,841

Brazil

2.9%

Wheaton

Precious

Metals

Corp.

.....

Metals

Mining

211,381

9,316,280

Yara

International

ASA

............

Chemicals

82,663

4,356,201

13,672,481

Canada

2.3%

Barrick

Gold

Corp.

...............

Metals

Mining

256,300

5,300,284

Restaurant

Brands

International,

Inc.

Hotels,

Restaurants

Leisure

82,700

5,327,888

10,628,172

China

4.7%

Alibaba

Group

Holding

Ltd.

.........

Internet

Direct

Marketing

Retail

290,600

8,239,573

NXP

Semiconductors

..........

Semiconductors

Semiconductor

Equipment

23,796

4,895,313

Yum

China

Holdings,

Inc.

..........

Hotels,

Restaurants

Leisure

21,300

1,411,125

Yum

China

Holdings,

Inc.

..........

Hotels,

Restaurants

Leisure

112,150

7,311,827

21,857,838

France

7.6%

Danone

.....................

Food

Products

102,237

7,193,486

Eiffage

......................

Construction

Engineering

65,717

6,694,279

TotalEnergies

................

Oil,

Gas

Consumable

Fuels

233,040

10,558,022

Veolia

Environnement

..........

Multi-Utilities

367,138

11,099,839

35,545,626

Germany

15.8%

adidas

......................

Textiles,

Apparel

Luxury

Goods

23,063

8,606,866

Continental

..................

Auto

Components

35,214

5,181,161

Covestro

AG,

144A,

Reg

.........

Chemicals

79,094

5,114,531

Deutsche

Boerse

..............

Capital

Markets

28,489

4,973,068

Deutsche

Telekom

.............

Diversified

Telecommunication

Services

833,879

17,638,034

E.ON

.......................

Multi-Utilities

1,090,124

12,613,446

Fresenius

Medical

Care

Co.

KGaA

Health

Care

Providers

Services

122,009

10,139,346

Infineon

Technologies

..........

Semiconductors

Semiconductor

Equipment

86,679

3,486,805

a,b

Just

Eat

Takeaway.com

NV,

144A,

Reg

...........................

Internet

Direct

Marketing

Retail

66,172

6,120,343

73,873,600

Hong

Kong

2.4%

AIA

Group

Ltd.

..................

Insurance

924,200

11,465,162

Hungary

0.5%

Richter

Gedeon

Nyrt

.............

Pharmaceuticals

82,751

2,203,556

Ireland

2.6%

CRH

plc

.......................

Construction

Materials

150,067

7,589,726

a,c

ICON

plc

.......................

Life

Sciences

Tools

Services

22,500

4,650,975

12,240,701

Japan

20.9%

Hitachi

Ltd.

.....................

Industrial

Conglomerates

285,000

16,334,016

Honda

Motor

Co.

Ltd.

.............

Automobiles

297,400

9,566,210

Isuzu

Motors

Ltd.

................

Automobiles

802,100

10,644,551

Komatsu

Ltd.

...................

Machinery

283,000

7,011,549

Kyocera

Corp.

...................

Electronic

Equipment,

Instruments

Components

164,800

10,182,325

Mitsubishi

Electric

Corp.

...........

Electrical

Equipment

569,300

8,265,408

Templeton

Institutional

Funds

Statement

Investments

(unaudited)

International

Equity

Series

(continued)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Industry

Value

Common

Stocks

(continued)

Japan

(continued)

Sony

Group

Corp.

................

Household

Durables

112,400

10,900,102

Sumitomo

Metal

Mining

Co.

Ltd.

.....

Metals

Mining

148,500

5,775,798

Sumitomo

Mitsui

Financial

Group,

Inc.

Banks

333,900

11,511,229

Taisei

Corp.

....................

Construction

Engineering

239,500

7,861,194

98,052,382

Luxembourg

0.8%

ArcelorMittal

.................

Metals

Mining

117,408

3,614,952

Netherlands

1.2%

Royal

Dutch

Shell

plc,

...........

Oil,

Gas

Consumable

Fuels

302,524

5,873,261

Norway

1.2%

Equinor

ASA

....................

Oil,

Gas

Consumable

Fuels

267,480

5,662,582

South

Korea

4.9%

Financial

Group,

Inc.

...........

Banks

84,943

4,201,715

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

Peripherals

199,583

14,239,899

Shinhan

Financial

Group

Co.

Ltd.

....

Banks

131,340

4,726,204

23,167,818

Spain

1.4%

Red

Electrica

Corp.

............

Electric

Utilities

347,968

6,460,984

Switzerland

2.6%

Adecco

Group

................

Professional

Services

62,113

4,226,280

Roche

Holding

...............

Pharmaceuticals

21,128

7,961,836

12,188,116

Taiwan

2.3%

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

......................

Semiconductors

Semiconductor

Equipment

494,492

10,630,164

United

Kingdom

18.9%

AstraZeneca

plc

.................

Pharmaceuticals

73,378

8,816,580

BAE

Systems

plc

................

Aerospace

Defense

1,515,233

10,949,897

plc

.........................

Oil,

Gas

Consumable

Fuels

2,783,549

12,207,845

Burberry

Group

plc

...............

Textiles,

Apparel

Luxury

Goods

206,311

5,900,756

Hutchison

Holdings

Ltd.

.........

Industrial

Conglomerates

777,794

6,054,939

Compass

Group

plc

..............

Hotels,

Restaurants

Leisure

247,320

5,210,893

Smith

plc

....................

Containers

Packaging

1,194,414

6,915,732

GlaxoSmithKline

plc

..............

Pharmaceuticals

424,118

8,338,380

Informa

plc

.....................

Media

334,286

2,323,375

International

Consolidated

Airlines

Group

.....................

Airlines

2,031,825

4,906,334

Smith

Nephew

plc

..............

Health

Care

Equipment

Supplies

227,140

4,926,396

Standard

Chartered

plc

............

Banks

1,026,683

6,552,563

Unilever

plc

.....................

Personal

Products

40,094

2,343,006

Smith

plc

...................

Specialty

Retail

134,022

2,986,462

88,433,158

Total

Common

Stocks

(Cost

$333,071,918)

.....................................

442,439,394

Templeton

Institutional

Funds

Statement

Investments

(unaudited)

International

Equity

Series

(continued)

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Industry

Value

Escrows

and

Litigation

Trusts

0.0%

a,d

Hemisphere

Properties

India

Ltd.,

Escrow

Account

................

2,094,964

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$333,071,918)

...............................

442,439,394

Short

Term

Investments

3.0%

Industry

Value

Money

Market

Funds

2.5%

United

States

2.5%

e,f

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

0.01%

..........

11,792,272

Total

Money

Market

Funds

(Cost

$11,792,272)

..................................

11,792,272

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.5%

Money

Market

Funds

0.5%

e,f

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

0.01%

..........

2,418,256

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$2,418,256)

.................................................................

2,418,256

Total

Short

Term

Investments

(Cost

$14,210,528

)

................................

14,210,528

Total

Investments

(Cost

$347,282,446)

97.5%

...................................

$456,649,922

Other

Assets,

less

Liabilities

2.5%

.............................................

11,519,847

Net

Assets

100.0%

...........................................................

$468,169,769

Non-income

producing.

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

June

30,

2021,

the

aggregate

value

these

securities

was

$11,234,874,

representing

2.4%

net

assets.

portion

all

the

security

loan

June

30,

2021.

See

Note

1(e).

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

See

Note

3(d)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

See

Note

1(e)

regarding

securities

loan.

Templeton

Institutional

Funds

Statement

Investments

(unaudited)

International

Equity

Series

(continued)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

June

30,

2021,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(d).

Futures

Contracts

Description

Type

Number

Contracts

Notional

Amount

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Equity

contracts

MSCI

EAFE

Index

............................

Long

8,640,375

9/17/21

(219,905)

Total

Futures

Contracts

......................................................................

$(219,905)

period

end.

See

Note

regarding

other

derivative

information

Templeton

Institutional

Funds

Financial

Statements

Assets

and

Liabilities

June

30,

2021

(unaudited)

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Foreign

Smaller

Companies

Series

International

Equity

Series

Assets:

Investments

securities:

Cost

Unaffiliated

issuers

..................................................

$460,675,716

$333,071,918

Cost

Non-controlled

affiliates

(Note

)

.......................................

11,384,190

14,210,528

Value

Unaffiliated

issuers

(Includes

securities

loaned

$16,097,715

and

$4,418,426

respectively)

............................................................

$717,642,314

$442,439,394

Value

Non-controlled

affiliates

(Note

)

......................................

11,384,190

14,210,528

Cash

...................................................................

33,738,292

—

Foreign

currency,

value

(cost

$–

and

$26,559

respectively)

........................

—

26,556

Receivables:

Investment

securities

sold

..................................................

1,381,786

—

Capital

sold

.......................................................

320,727

333,438

Dividend

and

interest

.....................................................

1,408,358

8,074,821

European

Union

tax

reclaims

(Note

)

........................................

1,044,414

8,027,057

Deposits

with

brokers

for:

Futures

contracts

.......................................................

—

588,060

Due

from

custodian

.......................................................

—

2,250,400

Total

assets

.........................................................

766,920,081

475,950,254

Liabilities:

Payables:

Investment

securities

purchased

.............................................

575,507

—

Capital

redeemed

..................................................

7,703,036

191,337

Management

fees

........................................................

597,310

290,180

Transfer

agent

fees

.......................................................

8,364

18,878

Trustees'

fees

and

expenses

................................................

13,290

45,713

IRS

closing

agreement

fees

for

European

Union

tax

reclaims

(Note

1f)

................

—

2,234,462

Variation

margin

futures

contracts

..........................................

—

66,750

Payable

upon

return

securities

loaned

(Note

)

.................................

11,384,190

4,668,656

Accrued

expenses

and

other

liabilities

..........................................

45,172

264,509

Total

liabilities

........................................................

20,326,869

7,780,485

Net

assets,

value

................................................

$746,593,212

$468,169,769

Net

assets

consist

of:

Paid-in

capital

............................................................

$427,860,799

$262,922,504

Total

distributable

earnings

(losses)

............................................

318,732,413

205,247,265

Net

assets,

value

................................................

$746,593,212

$468,169,769

outstanding

........................................................

28,744,536

Net

asset

value

per

...................................................

$25.97

International

Equity

Series

Primary

Net

assets,

value

.......................................................................

$467,488,223

outstanding

........................................................................

28,253,483

Net

asset

value

per

...................................................................

$16.55

Service

Net

assets,

value

.......................................................................

$681,546

outstanding

........................................................................

40,522

Net

asset

value

per

...................................................................

$16.82

Templeton

Institutional

Funds

Financial

Statements

Operations

for

the

six

months

ended

June

30,

2021

(unaudited)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Foreign

Smaller

Companies

Series

International

Equity

Series

Investment

income:

Dividends:

(net

foreign

taxes

$173,787

and

$1,572,601,

respectively)

Unaffiliated

issuers

.......................................................

$7,422,425

$6,773,451

Non-controlled

affiliates

(Note

)

............................................

—

414

Interest:

Unaffiliated

issuers

.......................................................

—

1,566

Income

from

securities

loaned:

Unaffiliated

entities

(net

fees

and

rebates)

....................................

150,876

2,376

Non-controlled

affiliates

(Note

)

............................................

578

Other

income

(Note

)

......................................................

709,241

978,864

Total

investment

income

..................................................

8,283,120

7,756,694

Expenses:

Management

fees

(Note

)

..................................................

3,540,440

1,799,198

Transfer

agent

fees:

(Note

)

Primary

.........................................................

—

82,741

Service

.........................................................

—

Transfer

agent

fees

(Note

)

.................................................

90,945

—

Sub-transfer

agent

fees:

(Note

)

Service

.........................................................

—

355

Custodian

fees

............................................................

40,002

43,488

Reports

shareholders

.....................................................

15,159

18,220

Registration

and

filing

fees

...................................................

16,503

32,223

Professional

fees

..........................................................

42,269

83,241

Trustees'

fees

and

expenses

.................................................

42,573

72,328

Other

...................................................................

16,959

45,484

Total

expenses

........................................................

3,804,850

2,177,337

Expenses

waived/paid

affiliates

(Note

and

)

............................

(4,590)

(85,607)

Net

expenses

........................................................

3,800,260

2,091,730

Net

investment

income

...............................................

4,482,860

5,664,964

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

.....................................................

64,332,356

19,948,879

Foreign

currency

transactions

...............................................

(114,838)

242,323

Futures

contracts

........................................................

—

3,275,768

Net

realized

gain

(loss)

.................................................

64,217,518

23,466,970

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

.....................................................

21,444,319

12,113,630

Translation

other

assets

and

liabilities

denominated

foreign

currencies

.............

(31,932)

(1,646,390)

Futures

contracts

........................................................

—

(751,053)

Net

change

unrealized

appreciation

(depreciation)

...........................

21,412,387

9,716,187

Net

realized

and

unrealized

gain

(loss)

...........................................

85,629,905

33,183,157

Net

increase

(decrease)

net

assets

resulting

from

operations

.........................

$90,112,765

$38,848,121

Templeton

Institutional

Funds

Financial

Statements

Changes

Net

Assets

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Foreign

Smaller

Companies

Series

International

Equity

Series

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

............

$4,482,860

$5,471,863

$5,664,964

$67,218,880

Net

realized

gain

(loss)

............

64,217,518

13,792,014

23,466,970

84,230,905

Net

change

unrealized

appreciation

(depreciation)

.................

21,412,387

30,251,773

9,716,187

(245,295,604)

Net

increase

(decrease)

net

assets

resulting

from

operations

90,112,765

49,515,650

38,848,121

(93,845,819)

Distributions

shareholders:

Primary

..................

—

(53,111,315)

Service

..................

—

(29,760)

Distributions

shareholders

.........

—

(8,851,726)

—

Total

distributions

shareholders

.....

—

(8,851,726)

—

(53,141,075)

Capital

transactions:

(Note

)

Primary

..................

—

(18,454,844)

(1,101,888,702)

Service

..................

—

189,897

(218,302)

Capital

transactions

(Note

)

.....

(68,617,241)

(98,536,876)

—

Total

capital

transactions

.......

(68,617,241)

(98,536,876)

(18,264,947)

(1,102,107,004)

Net

increase

(decrease)

net

assets

.....................

21,495,524

(57,872,952)

20,583,174

(1,249,093,898)

Net

assets:

Beginning

period

................

725,097,688

782,970,640

447,586,595

1,696,680,493

End

period

.....................

$746,593,212

$725,097,688

$468,169,769

$447,586,595

Templeton

Institutional

Funds

ftinstitutional.com

Semiannual

Report

Notes

Financial

Statements

(unaudited)

Organization

and

Significant

Accounting

Policies

Templeton

Institutional

Funds (Trust)

registered

under

the

Investment

Company

Act

1940

(1940

Act)

open-end

management

investment

company,

consisting

two

separate

funds (Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

International

Equity

Series

offers

Primary

and

Service

Shares. Each

class

may

differ

its initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

matters

affecting

single

class,

its

exchange

privilege

and

fees

due

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Funds'

significant

accounting

policies.

Financial

Instrument

Valuation

The Funds'

investments

financial

instruments

are

carried

fair

value

daily.

Fair

value

the

price

that

would

received

sell

asset

paid

transfer

liability

orderly

transaction

between

market

participants

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

each

business

day

p.m.

Eastern

time

the

regularly

scheduled

the

New

York

Stock

Exchange

(NYSE),

whichever

earlier.

Under

compliance

policies

and

procedures

approved

the

Trust's

Board

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

valuation,

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

determine

fair

value.

Equity

securities

and

derivative

financial

instruments

listed

exchange

the

NASDAQ

National

Market

System

are

valued

the

last

quoted

sale

price

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

the

trading

the

foreign

stock

exchange

which

the

security

primarily

traded,

p.m.

Eastern

time.

The

value

then

converted

into

its

U.S.

dollar

equivalent

the

foreign

exchange

rate

effect

p.m.

Eastern

time

the

day

that

the

value

the

security

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

multiple

markets

multiple

exchanges

are

valued

according

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

relationships

similar

securities.

Debt

securities

generally

trade

the

OTC

market

rather

than

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

determine

fair

value.

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

market-based

approach

through

which

quotes

from

market

makers

are

used

determine

fair

value.

instances

where

sufficient

market

activity

may

not

exist

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

principal

repayments,

underlying

collateral,

and

other

unique

security

features

order

estimate

the

relevant

cash

flows,

which

are

then

discounted

calculate

the

fair

value.

Investments

open-end

mutual

funds

are

valued

the

closing

NAV.

Funds

have

procedures

determine

the

fair

value

financial

instruments

for

which

market

prices

are

not

reliable

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

market-based

approach

which

may

use

comparable

assets

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

determine

the

fair

value

the

investment.

income-based

valuation

approach

may

also

used

which

the

anticipated

future

cash

flows

the

investment

are

discounted

calculate

fair

value.

Discounts

may

also

applied

due

the

nature

duration

any

restrictions

the

disposition

the

investments.

Due

the

inherent

uncertainty

valuations

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

active

market

existed.

Trading

securities

foreign

securities

stock

exchanges

and

OTC

markets

may

completed

before

p.m.

Eastern

time.

addition,

trading

certain

foreign

markets

may

not

take

place

every

Funds'

business

day.

Events

can

occur

between

the

time

which

trading

foreign

security

completed

and

p.m.

Eastern

time

that

might

call

into

question

the

reliability

the

value

portfolio

security

held

the

Funds.

result,

differences

may

arise

between

the

value

the

Funds'

portfolio

securities

determined

the

foreign

market

and

the

latest

indications

value

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

p.m.

Eastern

time.

order

minimize

the

potential

for

these

differences,

independent

pricing

service

may

used

adjust

the

value

the

Funds'

portfolio

securities

the

latest

indications

fair

value

p.m.

Eastern

time.

June

30,

2021,

certain

securities

may

have

been

fair

valued

using

these

procedures,

which

case

the

securities

were

categorized

Level

inputs

within

the

fair

value

hierarchy

(referred

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

information.

When

the

last

day

the

reporting

period

non-business

day,

certain

foreign

markets

may

open

those

days

that

the

Funds'

NAV

not

calculated,

which

could

result

differences

between

the

value

the

Funds'

portfolio

securities

the

last

business

day

and

the

last

calendar

day

the

reporting

period.

Any

security

valuation

changes

due

open

foreign

market

are

adjusted

and

reflected

the

Funds

for

financial

reporting

purposes.

Foreign

Currency

Translation

Portfolio

securities

and

other

assets

and

liabilities

denominated

foreign

currencies

are

translated

into

U.S.

dollars

based

the

exchange

rate

such

currencies

against

U.S.

dollars

the

date

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

facilitate

transactions

denominated

foreign

currency.

Purchases

and

sales

securities,

income

and

expense

items

denominated

foreign

currencies

are

translated

into

U.S.

dollars

the

exchange

rate

effect

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

foreign

currencies

contain

risks

that

those

currencies

will

decline

value

relative

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

reliability

foreign

exchange

rates

used

convert

the

U.S.

dollar

equivalent

value.

such

event

occurs,

the

foreign

exchange

rate

will

valued

fair

value

using

procedures

established

and

approved

the

Board.

The

Funds

not

separately

report

the

effect

changes

foreign

exchange

rates

from

changes

market

prices

securities

held.

Such

changes

are

included

net

realized

and

unrealized

gain

loss

from

investments

the

Statements

Operations.

Realized

foreign

exchange

gains

losses

arise

from

sales

foreign

currencies,

currency

gains

losses

realized

between

the

trade

and

settlement

dates

securities

transactions

and

the

difference

between

the

recorded

amounts

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

the

amounts

actually

received

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

foreign

exchange

rates

foreign

denominated

assets

and

liabilities

other

than

investments

securities

held

the

end

the

reporting

period.

Securities

Purchased

Delayed

Delivery

Basis

Certain

all

Funds

purchase

securities

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

future

date.

These

transactions

are

subject

market

fluctuations

and

are

subject

the

risk

that

the

value

delivery

may

less

than

the

trade

date

purchase

price.

Although

the

Funds

will

generally

purchase

these

securities

with

the

intention

holding

the

securities,

they

may

sell

the

securities

before

the

settlement

date.

Derivative

Financial

Instruments

Certain

all

Funds

invested

derivative

financial

instruments

order

manage

risk

gain

exposure

various

other

investments

markets.

Derivatives

are

financial

contracts

based

underlying

notional

amount,

require

initial

investment

initial

net

investment

that

smaller

than

would

normally

required

have

similar

response

changes

market

factors,

and

require

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

the

counterparty

fulfill

their

obligations

under

the

terms

the

contract,

the

potential

for

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Funds

gains

losses

excess

the

amounts

shown

the

Statements

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

these

contracts

for

the

period

are

included

the

Statements

Operations.

Collateral

requirements

differ

type

derivative.

Collateral

initial

margin

requirements

are

set

the

broker

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

held

the

exchange

and

can

the

form

cash

and/or

securities.

Organization

and

Significant

Accounting

Policies

(continued)

Financial

Instrument

Valuation

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Certain

all

Funds

entered

into

exchange

traded

futures

contracts

primarily

manage

and/or

gain

exposure

equity

price

risk.

futures

contract

agreement

between

the

Funds

and

counterparty

buy

sell

asset

specified

price

future

date.

Required

initial

margins

are

pledged

the

Funds,

and

the

daily

change

fair

value

accounted

for

variation

margin

payable

receivable.

See

Note

regarding

other

derivative

information.

Securities

Lending

Certain

all

Funds

participate

agency

based

securities

lending

program

earn

additional

income.

The

Funds

receive

collateral

the

form

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

amount

equal

least

102%

the

fair

value

the

loaned

securities.

Collateral

maintained

over

the

life

the

loan

amount

not

less

than

100%

the

fair

value

loaned

securities,

determined

the

Fund

business

each

day;

any

additional

collateral

required

due

changes

security

values

delivered

the

Fund

the

business

day.

Any

cash

collateral

received

deposited

into

joint

cash

account

with

other

funds

and

used

invest

money

market

fund

managed

Franklin

Advisers,

Inc.,

affiliate

the

Funds,

and/or

uninvested

cash

included

due

from

custodian

the

Statements

Assets

and

Liabilities.

Additionally,

the

Foreign

Smaller

Companies

Series

held

$5,720,278,

U.S.

Government

and

Agency

securities

collateral.

These

securities

are

held

collateral

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

resell

these

securities

held

collateral.

such,

the

non-cash

collateral

excluded

from

the

Statements

Assets

and

Liabilities. The

Funds

may

receive

income

from

the

investment

cash

collateral,

addition

lending

fees

and

rebates

paid

the

borrower.

Income

from

securities

loaned,

net

fees

paid

the

securities

lending

agent

and/or

third-party

vendor,

reported

separately

the

Statements

Operations.

The

Funds

bear

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

its

obligations

the

Funds.

the

borrower

defaults

its

obligation

return

the

securities

loaned,

the

Funds

have

the

right

repurchase

the

securities

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

indemnify

the

Funds

the

event

default

third

party

borrower.

Income

and

Deferred

Taxes

is each

Fund's

policy

qualify

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

distribute

shareholders

substantially

all

its

taxable

income

and

net

realized

gains

relieve

from

federal

income

and excise

taxes.

result,

provision

for

U.S.

federal

income

taxes

required.

The

Funds

may

subject

foreign

taxation

income

received,

capital

gains

the

sale

securities

and

certain

foreign

currency

transactions

the

foreign

jurisdictions

which

the

Funds

invest.

Foreign

taxes,

any,

are

recorded

based

the

tax

regulations

and

rates

that

exist

the

foreign

markets

which

the

Funds

invest.

When

capital

gain

tax

determined

apply,

certain

all

Funds

record

estimated

deferred

tax

liability

amount

that

would

payable

the

securities

were

disposed

the

valuation

date.

result

several

court

cases,

certain

countries

across

the

European

Union,

certain

all

Funds

filed

additional

tax

reclaims

for

previously

withheld

taxes

dividends

earned

those

countries

(EU

reclaims). Income

recognized,

any,

for

reclaims

reflected

other

income

the

Statements of

Operations

and

any

receivable,

any,

reflected

European

Union

tax

reclaims

the

Statements

Assets

and

Liabilities.

When

uncertainty

exists

the

ultimate

resolution

these

proceedings,

the

likelihood

receipt

these

reclaims,

and

the

potential

timing

payment,

amounts

are

reflected

the

financial

statements.

For

U.S.

income

tax

purposes,

reclaims

received

the

Funds,

any,

reduce

the

amount

foreign

taxes

Fund

shareholders

can

use

tax

deductions

or credits

their income

tax

returns.

the

event

that

reclaims

received

the

Funds during a

fiscal

year

exceed

foreign

withholding

taxes

paid

the

Funds,

and

the Funds

previously

passed through

its

shareholders

foreign

taxes

incurred

the

Funds

used

credit

deduction

shareholder’s

income

tax

return,

the

Funds will

enter

into

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

order

pay

the

associated

tax

liability

behalf

the Funds'

shareholders.

Organization

and

Significant

Accounting

Policies

(continued)

Derivative

Financial

Instruments

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Each

Fund

may

recognize

income

tax

liability

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

less

than

50%

probability

that

will

sustained

upon

examination

the

tax

authorities

based

its

technical

merits.

June

30,

2021, each

Fund

has

determined

that

tax

liability

required

its

financial

statements

uncertain

tax

positions

for

any

open

tax

years

(or

expected

taken

future

tax

years).

Open

tax

years

are

those

that

remain

subject

examination

and

are

based

the

statute

limitations

each

jurisdiction

which

the

Funds

invest.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

trade

date.

Realized

gains

and

losses

security

transactions

are

determined

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

premium

and

accretion

discount

debt

securities

are

included

interest

income.

Dividend

income

recorded

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

not

available.

such

cases,

the

dividend

recorded

soon

the

information

received

the

Funds.

Distributions

shareholders

are

recorded

the

ex-dividend

date.

Distributable

earnings

are

determined

according

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

accordance

with

U.S.

GAAP.

These

differences

may

permanent

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

reflect

their

tax

character.

These

reclassifications

have

impact

net

assets

the

results

operations.

Temporary

differences

are

not

reclassified,

they

may

reverse

subsequent

periods.

Common

expenses

incurred

the

Trust

are

allocated

among

the

Funds

based

the

ratio

net

assets

each

Fund

the

combined

net

assets

the

Trust

based

the

ratio

number

shareholders

each

Fund

the

combined

number

shareholders

the

Trust.

Fund

specific

expenses

are

charged

directly

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

each

class

based

upon

the

relative

proportion

net

assets

each

class.

Differences

per

distributions

class

are

generally

due

differences

class

specific

expenses.

Accounting

Estimates

The

preparation

financial

statements

accordance

with

U.S.

GAAP

requires

management

make

estimates

and

assumptions

that

affect

the

reported

amounts

assets

and

liabilities

the

date

the

financial

statements

and

the

amounts

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

the

Trust

against

certain

liabilities

arising

out

the

performance

their

duties

the

Trust.

Additionally,

the

normal

course

business,

the

Trust,

behalf

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

unknown

this

would

involve

future

claims

that

may

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

loss

remote.

Organization

and

Significant

Accounting

Policies

(continued)

Income

and

Deferred

Taxes

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Beneficial

Interest

June

30,

2021,

there

were

unlimited

number

authorized

(

without

par

value

)

Transactions

the

Funds’

were

follows:

Foreign

Smaller

Companies

Series

Amount

Advisor

Class

Six

Months

ended

June

30,

2021

sold

...................................

1,377,017

$33,941,073

redeemed

...............................

(4,123,290)

(102,558,314)

Net

increase

(decrease)

..........................

(2,746,273)

$(68,617,241)

Year

ended

December

31,

2020

sold

...................................

9,412,891

$166,630,256

issued

reinvestment

distributions

..........

341,853

7,788,220

redeemed

...............................

(14,851,654)

(272,955,352)

Net

increase

(decrease)

..........................

(5,096,910)

$(98,536,876)

International

Equity

Series

Amount

Primary

Six

Months

ended

June

30,

2021

sold

...................................

3,906,465

$63,068,842

redeemed

...............................

(5,027,140)

(81,523,686)

Net

increase

(decrease)

..........................

(1,120,675)

$(18,454,844)

Year

ended

December

31,

2020

sold

...................................

14,329,539

$202,147,807

issued

reinvestment

distributions

..........

3,342,528

46,688,253

redeemed

...............................

(97,427,178)

(1,350,724,762)

Net

increase

(decrease)

..........................

(79,755,111)

$(1,101,888,702)

Service

Six

Months

ended

June

30,

2021

sold

...................................

11,767

$192,444

redeemed

...............................

(151)

(2,547)

Net

increase

(decrease)

..........................

11,616

$189,897

Year

ended

December

31,

2020

sold

...................................

2,179

$29,850

issued

reinvestment

distributions

..........

2,098

29,760

redeemed

...............................

(19,698)

(277,912)

Net

increase

(decrease)

..........................

(15,421)

$(218,302)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

3.Transactions

with

Affiliates

Franklin

Resources,

Inc.

the

holding

company

for

various

subsidiaries

that

together

are

referred

Franklin

Templeton.

Certain

officers

and

trustees

the

Trust

are

also

officers

and/or

directors

the

following

subsidiaries:

Management

Fees

Foreign

Smaller

Companies

Series

pays

investment

management

fee

TIC

based

the

average

daily

net

assets

the

Fund

follows:

International

Equity

Series

pays

investment

management

fee

TIC

based

the

average

daily

net

assets

the

Fund

follows:

For

the

period

ended

June

30,

2021,

each

Fund's

annualized

gross

effective

investment

management

fee

rate

based

average

daily

net

assets

was

follows:

Effective

January

2021,

under

subadvisory

agreement,

FTIC,

affiliate

TIC,

provides

subadvisory

services

Foreign

Smaller

Companies

Series.

The

subadvisory

fee

paid

TIC

based

the

Fund's

average

daily

net

assets,

and

not

additional

expense

the

Fund.

Subsidiary

Affiliation

Templeton

Investment

Counsel,

LLC

(TIC)

Investment

manager

Franklin

Templeton

Investments

Corp.

(FTIC)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

(Formerly

Franklin

Templeton

Distributors,

Inc.)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.950%

and

including

billion

0.930%

Over

billion,

and

including

billion

0.910%

Over

billion,

and

including

$10

billion

0.890%

Over

$10

billion,

and

including

$15

billion

0.870%

Over

$15

billion,

and

including

$20

billion

0.850%

excess

$20

billion

Annualized

Fee

Rate

Net

Assets

0.775%

and

including

billion

0.755%

Over

billion,

and

including

billion

0.735%

Over

billion,

and

including

$10

billion

0.715%

Over

$10

billion,

and

including

$15

billion

0.695%

Over

$15

billion,

and

including

$20

billion

0.675%

excess

$20

billion

Foreign

Smaller

Companies

Series

International

Equity

Series

Gross

effective

investment

management

fee

rate

........

0.950%

0.775%

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Administrative

Fees

Under

agreement

with

TIC,

Services

provides

administrative

services

the

Funds.

The

fee

paid

TIC

based

each

the

Funds'

average

daily

net

assets,

and

not

additional

expense

the

Funds.

Transfer

Agent

Fees

Each

class

pays

transfer

agent

fees

Investor

Services

for

its

performance

shareholder

servicing

obligations.

The

fees

are

based

annualized

asset

based

fee

0.02%

plus

transaction

based

fee.

addition,

each

class

reimburses

Investor

Services

for

out

pocket

expenses

incurred

and

reimburses

shareholder

servicing

fees

paid

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

such

classes’

aggregate

net

assets.

For

the

period

ended

June

30,

2021,

the

Funds

paid

transfer

agent

fees

noted

the

Statements

Operations

which

the

following

amounts

were

retained

Investor

Services:

International

Equity

Series’

Service

may

pay

0.15%

average

daily

net

assets

for

sub-transfer

agency

fees

noted

the

Statements

Operations.

Investments

Affiliated

Management

Investment

Companies

Certain

all

Funds

invest

one

affiliated

management

investment

companies.

defined

the

1940

Act,

investment

deemed

“Controlled

Affiliate”

fund

when

fund

owns,

either

directly

indirectly,

25%

the

affiliated

fund’s

outstanding

has

the

power

exercise

control

over

management

policies

such

fund.

The

Funds

not

invest

for

purposes

exercising

controlling

influence

over

the

management

policies.

Management

fees

paid

the

Funds

are

waived

assets

invested

the

affiliated

management

investment

companies,

noted

the

Statements

Operations,

amount

not

exceed

the

management

and

administrative

fees

paid

directly

indirectly

each

affiliate.

During

the

period

ended

June

30,

2021,

the

Funds

held

investments

affiliated

management

investment

companies

were

follows:

Foreign

Smaller

Companies

Series

International

Equity

Series

Transfer

agent

fees

........................

$90,945

$72,783

Value

Beginning

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Period

Number

Held

End

Period

Investment

Income

Foreign

Smaller

Companies

Series

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

0.01%

.......

$31,885,434

$41,262,168

$(61,763,412)

—

$11,384,190

11,384,190

$578

Total

Affiliated

Securities

....

$31,885,434

$41,262,168

$(61,763,412)

$—

$11,384,190

$578

3.Transactions

with

Affiliates

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Waiver

and

Expense

Reimbursements

TIC

has

contractually

agreed

advance

limit

the

investment

management

fees

for

International

Equity

Series

0.74%

the

average

daily

net

assets

the

Fund

until

April

30,

2022.

Total

expenses

waived

paid

are

not

subject

recapture

subsequent

the

Fund’s

fiscal

year

end.

Income

Taxes

June

30,

2021,

the

cost

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

follows:

Differences

between

income

and/or

capital

gains

determined

book

basis

and

tax

basis

are

primarily

due

differing

treatments

reclaims,

passive

foreign

investment

company

shares,

foreign

capital

gains

tax,

foreign

currency

transactions,

corporate

actions,

wash

sales

and

financial

futures

transactions.

Value

Beginning

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Period

Number

Held

End

Period

Investment

Income

International

Equity

Series

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

0.01%

.......

$5,645,058

$87,991,710

$(81,844,496)

$—

$11,792,272

11,792,272

$414

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

0.01%

.......

$5,609,390

$18,478,665

$(21,669,799)

—

$2,418,256

2,418,256

$23

Total

Affiliated

Securities

....

$11,254,448

$106,470,375

$(103,514,295)

$—

$14,210,528

$437

Foreign

Smaller

Companies

Series

International

Equity

Series

Cost

investments

.......................

$481,548,043

$358,774,456

Unrealized

appreciation

.....................

$271,530,061

$112,170,509

Unrealized

depreciation

.....................

(24,051,600)

(14,514,948)

Net

unrealized

appreciation

(depreciation)

.......

$247,478,461

$97,655,561

3.Transactions

with

Affiliates

(continued)

Investments

Affiliated

Management

Investment

Companies

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Investment

Transactions

Purchases

and

sales

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2021,

were

follows:

June

30,

2021,

connection

with

securities

lending

transactions,

certain

all

Funds

loaned

investments

and

received

cash

collateral

follows:

Other

Derivative

Information

June

30,

2021,

Funds’

investments

derivative

contracts

are

reflected

the

Statements

Assets

and

Liabilities

follows:

Foreign

Smaller

Companies

Series

International

Equity

Series

Purchases

..............................

$118,684,053

$103,963,840

Sales

..................................

$182,543,035

$89,235,770

Foreign

Smaller

Companies

Series

International

Equity

Series

Securities

lending

transactions

Equity

investments

........................

$11,384,190

$4,668,65

The

agreements

can

terminated

any

time.

The

gross

amount

recognized

liability

for

such

transactions

included

payable

upon

return

securities

loaned

the

Statements

Assets

and

Liabilities.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Assets

and

Liabilities

Location

Fair

Value

Statement

Assets

and

Liabilities

Location

Fair

Value

International

Equity

Series

Equity

contracts

...........

Variation

margin

futures

contracts

—

Variation

margin

futures

contracts

219,905

Total

....................

$—

$219,905

This

amount

reflects

the

cumulative

appreciation

(depreciation)

futures

contracts

reported

the

Statement

Investments.

Only

the

variation

margin

receivable/

payable

year

end

separately

reported

within

the

Statement

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

cash

upon

receipt

payment.

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

For

the

period

ended

June

30,

2021,

the

effect

derivative

contracts

the

Statements

Operations

was

follows:

For

the

period

ended

June

30,

2021,

the

average

month

end

notional

amount

futures

contracts

was

$23,265,528.

See

Note

1(d)

regarding

derivative

financial

instruments.

Concentration

Risk

Investing

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

U.S.

securities,

such

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

greater

market

volatility.

Political

and

financial

uncertainty

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

investing

foreign

securities.

addition,

certain

foreign

securities

may

not

liquid

U.S.

securities.

Novel

Coronavirus

Pandemic

The

global

outbreak

the

novel

coronavirus

disease,

known

COVID-19, has

caused

adverse

effects

many

companies,

sectors,

nations,

regions

and

the

markets

general, and

may

continue for

an unpredictable duration.

The

effects

this

pandemic

may

materially

impact

the

value

and

performance

the

Funds, their ability

buy

and

sell

fund

investments

appropriate

valuations

and their ability

achieve their investment

objectives.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

Franklin

Templeton,

are

borrowers

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

February

2022.

This

Global

Credit

Facility

provides

source

funds

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

meet

future

unanticipated

unusually

large

redemption

requests.

Under

the

terms

the

Global

Credit

Facility,

the

Funds

shall,

addition

interest

charged

any

borrowings

made

the

Funds

and

other

costs

incurred

the

Funds,

pay

their

fees

and

expenses

incurred

connection

with

the

implementation

and

maintenance

the

Global

Credit

Facility,

based

upon

their

relative

the

aggregate

net

assets

all

the

Borrowers,

including

annual

commitment

fee

0.15%

based

upon

the

unused

portion

the

Global

Credit

Facility.

These

fees

are

reflected

other

expenses

the

Statements

Operations.

During

the

period

ended

June

30,

2021,

the

Funds

did

not

use

the

Global

Credit

Facility.

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statements

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statements

Operations

Location

Net

Change

Unrealized

Appreciation

(Depreciation)

for

the

Period

International

Equity

Series

Net

realized

gain

(loss)

from:

Net

change

unrealized

appreciation

(depreciation)

on:

Equity

Contracts

..............

Futures

contracts

$3,275,768

Futures

contracts

$(751,053)

Total

.......................

$3,275,768

$(751,053)

Other

Derivative

Information

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

10.

Fair

Value

Measurements

The Funds

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

determining

the

value

the Funds' financial

instruments

and

are

summarized

the

following

fair

value

hierarchy:

Level

–

quoted

prices

active

markets

for

identical

financial

instruments

Level

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

determining

the

fair

value

financial

instruments)

The

input

levels

are

not

necessarily

indication

the

risk

liquidity

associated

with

financial

instruments

that

level.

summary

inputs

used

June

30,

2021,

valuing

the

Funds'

assets

carried

fair

value,

follows:

Level

Total

Foreign

Smaller

Companies

Series

Assets:

Investments

Securities:

Common

Stocks

Bahamas

............................

8,415,814

—

8,415,814

Belgium

.............................

—

23,876,361

—

23,876,361

Brazil

...............................

13,094,751

—

13,094,751

Canada

.............................

28,051,561

—

28,051,561

China

...............................

6,232,112

33,570,247

—

39,802,359

Denmark

............................

5,501,355

—

5,501,355

Finland

..............................

2,788,852

14,775,722

—

17,564,574

France

..............................

158,478

9,457,387

—

9,615,865

Germany

............................

3,146,088

31,848,440

—

34,994,528

Greece

..............................

—

5,346,897

—

5,346,897

Hong

Kong

...........................

—

25,057,529

—

25,057,529

Indonesia

............................

—

5,050,215

—

5,050,215

Israel

...............................

—

5,598,696

—

5,598,696

Italy

................................

—

51,174,296

—

51,174,296

Japan

...............................

—

137,528,737

—

137,528,737

Netherlands

..........................

14,526,507

17,423,180

—

31,949,687

Norway

..............................

5,521,606

4,247,276

—

9,768,882

Philippines

...........................

4,590,107

—

4,590,107

South

Korea

..........................

—

13,470,098

—

13,470,098

Spain

...............................

—

5,110,476

—

5,110,476

Sweden

.............................

—

36,851,643

—

36,851,643

Switzerland

...........................

6,602,232

38,475,679

—

45,077,911

Taiwan

..............................

—

72,059,718

—

72,059,718

Thailand

.............................

—

11,724,806

—

11,724,806

United

Kingdom

.......................

23,043,016

39,183,777

—

62,226,793

United

States

.........................

9,475,126

—

9,475,126

Preferred

Stocks

........................

3,848,899

—

3,848,899

Warrants

..............................

814,630

—

814,630

Short

Term

Investments

...................

11,384,190

—

11,384,190

Total

Investments

Securities

...........

$147,195,324

$581,831,180

$—

$729,026,504

International

Equity

Series

Assets:

Investments

Securities:

Common

Stocks

Belgium

.............................

—

6,868,841

—

6,868,841

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

reconciliation

which

Level

inputs

are

used

determining

fair

value

presented

when

there

are

significant

Level

assets

and/or

liabilities

the

beginning

and/or

end

the period.

11.

New

Accounting

Pronouncements

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

the

Effects

Reference

Rate

Reform

Financial

Reporting.

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

Topic

848.

The

amendments

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

certain

types

contract

modifications

due

the

planned

discontinuation

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

the

end

2021

and

2023. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

these

ASUs

will

not

have

material

impact

the

financial

statements.

12.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

the

financial

statements

and

determined

that

events

have

occurred

that

require

disclosure.

Level

Total

International

Equity

Series

(continued)

Assets:

Investments

Securities:

Common

Stocks:

Brazil

...............................

9,316,280

4,356,201

—

13,672,481

Canada

.............................

10,628,172

—

10,628,172

China

...............................

6,306,438

15,551,400

—

21,857,838

France

..............................

—

35,545,626

—

35,545,626

Germany

............................

—

73,873,600

—

73,873,600

Hong

Kong

...........................

—

11,465,162

—

11,465,162

Hungary

.............................

—

2,203,556

—

2,203,556

Ireland

..............................

4,650,975

7,589,726

—

12,240,701

Japan

...............................

—

98,052,382

—

98,052,382

Luxembourg

..........................

—

3,614,952

—

3,614,952

Netherlands

..........................

—

5,873,261

—

5,873,261

Norway

..............................

—

5,662,582

—

5,662,582

South

Korea

..........................

—

23,167,818

—

23,167,818

Spain

...............................

—

6,460,984

—

6,460,984

Switzerland

...........................

—

12,188,116

—

12,188,116

Taiwan

..............................

—

10,630,164

—

10,630,164

United

Kingdom

.......................

—

88,433,158

—

88,433,158

Escrows

and

Litigation

Trusts

...............

—

Short

Term

Investments

...................

14,210,528

—

14,210,528

Total

Investments

Securities

...........

$45,112,393

$411,537,529

$—

$456,649,922

Liabilities:

Other

Financial

Instruments:

Futures

contracts

........................

219,905

—

219,905

Includes

foreign

securities

valued

$581,831,180,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

securities

determined

have

value

June

30,

2021.

Includes

foreign

securities

valued

$411,537,529,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

10.

Fair

Value

Measurements

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

Templeton

Institutional

Funds

Shareholder

Information

ftinstitutional.com

Semiannual

Report

Board

Approval

Investment

Management

Agreements

TEMPLETON

INSTITUTIONAL

FUNDS

Foreign

Smaller

Companies

Series

International

Equity

Series

(each

Fund)

meeting

held

February

23,

2021

(Meeting),

the

Board

Trustees

(Board)

Templeton

Institutional

Funds

(Trust),

including

majority

the

trustees

who

are

not

“interested

persons”

defined

the

Investment

Company

Act

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

the

investment

management

agreement

between

Templeton

Investment

Counsel,

LLC

(TICL)

and

the

Trust,

behalf

each

Fund,

and

investment

sub-

advisory

agreement

between

TICL

and

Franklin

Templeton

Investments

Corp.

(Sub-Adviser),

affiliate

TICL,

behalf

the

Foreign

Smaller

Companies

Series,

for

additional

one-year

period

(each

Management

Agreement).

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

considering

whether

approve

the

continuation

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

the

same

Board

meeting,

the

Board

considered

the

information

provided

about

the

Funds

together

and

with

respect

each

Fund

separately

the

Board

deemed

appropriate.

TICL

and

the

Sub-Adviser

are

each

referred

herein

Manager.

considering

the

continuation

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

each

Manager

the

Meeting

and

throughout

the

year

meetings

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

response

detailed

set

requests

for

information

submitted

the

TICL

Independent

Trustee

counsel

behalf

the

Independent

Trustees

connection

with

the

annual

contract

renewal

process.

addition,

prior

the

Meeting,

the

Independent

Trustees

held

telephonic

contract

renewal

meeting

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

some

cases,

requested

additional

information

from

the

Managers

relating

the

contract.

The

Board

reviewed

and

considered

all

the

factors

deemed

relevant

approving

the

continuance

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

the

services

provided

each

Manager;

(ii)

the

investment

performance

each

Fund;

(iii)

the

costs

the

services

provided

and

profits

realized

each

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

which

economies

scale

are

realized

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

scale

for

the

benefit

Fund

investors.

approving

the

continuance

each

Management

Agreement,

the

Board,

including

majority

the

Independent

Trustees,

determined

that

the

terms

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

such

Management

Agreement

the

best

interests

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

the

Board’s

determination.

Nature,

Extent

and

Quality

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

investment

management

services

provided

each

Manager

and

its

affiliates

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

the

senior

management

and

investment

personnel

each

Manager,

well

information

succession

planning

where

appropriate;

the

structure

investment

personnel

compensation;

oversight

third-

party

service

providers;

investment

performance

reports

and

financial

information

for

each

Fund;

reports

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

each

Manager

and

its

affiliates;

and

management

fees

charged

each

Manager

and

its

affiliates

funds

and

other

accounts,

including

management’s

explanation

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

annual

report

payments

made

Franklin

Templeton

(FT)

the

Funds

financial

intermediaries,

well

memorandum

relating

third-

party

servicing

arrangements,

which

included

discussion

the

changing

distribution

landscape

for

the

Funds.

The

Board

noted

management’s

continuing

efforts

and

expenditures

establishing

effective

business

continuity

plans

and

developing

strategies

address

areas

heightened

concern

the

mutual

fund

industry,

such

cybersecurity

the

current

work-from-home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

Fund

shareholders

investing

fund

that

part

the

family

funds.

The

Board

noted

the

financial

position

Franklin

Resources,

Inc.

(FRI),

the

Templeton

Institutional

Funds

Shareholder

Information

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Semiannual

Report

Managers’

parent,

and

its

commitment

the

mutual

fund

business

evidenced

its

reassessment

the

fund

offerings

response

the

market

environment

and

project

initiatives

and

capital

investments

relating

the

services

provided

the

Funds

the

organization.

The

Board

specifically

noted

FT’s

commitment

enhancing

services

and

controlling

costs,

reflected

its

outsourcing

certain

administrative

functions,

and

growth

opportunities,

evidenced

its

recent

acquisition

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

expanding

the

distribution

opportunities

for

all

funds

the

family

funds.

Following

consideration

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

services

provided

each

Manager

and

its

affiliates

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

each

Fund

over

various

time

periods

ended

November

30,

2020.

The

Board

considered

the

performance

returns

for

each

Fund

comparison

the

performance

returns

mutual

funds

deemed

comparable

the

Fund

included

universe

(Performance

Universe)

selected

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

independent

provider

investment

company

data.

The

Board

received

description

the

methodology

used

Broadridge

select

the

mutual

funds

included

Performance

Universe.

The

Board

also

considered

the

performance

returns

for

the

Foreign

Smaller

Companies

Series

comparison

the

performance

returns

customized

peer

group

(Performance

Customized

Peer

Group)

selected

TICL.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

Board

meetings

throughout

the

year.

summary

each

Fund’s

performance

results

below.

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

Performance

Customized

Peer

Group

for

the

Fund

included

funds

that

are

value

style

and

have

80%

the

portfolio

market

value

invested

securities

with

market

capitalization

less

than

billion.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

its

Performance

Universe,

however,

was

above

the

median

its

Performance

Customized

Peer

Group

for

the

same

periods.

The

Board

further

noted

the

small

size

the

Fund’s

Performance

Customized

Peer

Group

for

the

10-year

period

and

that

therefore

quintile

information

was

provided

for

the

Fund

for

that

period.

The

Board

discussed

the

performance

the

Fund

with

management

and

management

explained

that

the

Performance

Universe

for

the

Fund

was

not

directly

comparable

the

Fund

the

Performance

Universe

not

comprised

solely

small-capitalization

funds,

and

includes

mid-capitalization

funds.

Management

further

explained

that

Broadridge

has

categorized

the

Fund

Broadridge’s

growth

category,

whereas

management’s

investment

process

focuses

longer-term

valuations.

Management

also

explained

that

the

foregoing

are

the

reasons

management

asked

Broadridge

include

the

Performance

Customized

Peer

Group,

which

comprised

value

style

funds

that

have

80%

their

portfolios

invested

securities

with

market

capitalizations

less

than

billion,

which

consistent

with

the

Fund’s

investment

strategies.

The

Board

noted

the

Fund’s

first

(best)

and

second

quintile

performance

compared

that

its

Performance

Customized

Peer

Group

for

the

one-,

three-

and

five-year

periods

and

that,

while

below

the

median

its

Performance

Universe,

the

Fund’s

annualized

total

return

for

each

period

was

positive.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

continued

for

additional

one-year

period.

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

three-

and

five-

year

periods

was

below

the

median

its

Performance

Universe,

but

for

the

one-

and

10-year

periods

was

above

the

median

its

Performance

Universe.

The

Board

discussed

the

performance

the

Fund

with

management

and

management

explained

that

the

Performance

Universe

for

the

Fund,

which

has

value

discipline,

was

not

directly

comparable

the

Fund

the

Performance

Universe

includes

funds

that

have

benefited

from

having

blend

style

(owning

some

growth

stocks),

which

negatively

impacted

relative

Fund

rankings

during

period

sustained

outperformance

growth

over

value.

Management

further

explained

that,

average,

the

Fund

has

had

larger

allocation

energy

stocks

compared

peers,

but

that

during

the

past

year

the

Fund

significantly

reduced

its

allocation

becoming

underweight

versus

peers

time

when

energy

stocks

underperformed

the

broad

market

33%

for

the

one-year

period.

The

Board

noted

the

continued

efforts

from

the

Adviser’s

Global

Equity

Group

address

the

Fund’s

performance,

particular,

enhancements

the

Fund’s

investment

process

and

additions

the

Fund’s

portfolio

management

team,

and

the

positive,

first

quintile

(best)

performance

results

experienced

the

Fund

for

the

one-year

period.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Templeton

Institutional

Funds

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Information

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Semiannual

Report

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

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

receives

all

marketing

support

payments

made

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

fee

waivers,

any

(Management

Rate)

each

Fund

comparison

the

median

expense

ratio

and

median

Management

Rate,

respectively,

other

mutual

funds

deemed

comparable

and

with

similar

expense

structure

the

Fund

selected

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

quite

different

from

those

currently

existing,

particularly

period

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

assets

decline

and

decrease

assets

grow,

the

Board

believed

the

independent

analysis

conducted

Broadridge

appropriate

measure

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for:

(i)

Primary

for

the

International

Equity

Series

and

for

Institutional

Class,

Class

and

Class

for

certain

other

funds

the

Expense

Group,

and

(ii)

Advisor

Class,

Institutional

Class,

Class

IS,

Class

and

Class

for

certain

funds

the

Foreign

Smaller

Companies

Series

Expense

Group.

The

Board

received

description

the

methodology

used

Broadridge

select

the

mutual

funds

included

Expense

Group.

Foreign

Smaller

Companies

Series

The

Expense

Group

for

the

Fund

included

the

Fund

and

other

international

small-/mid-cap

growth

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

its

Expense

Group.

The

Board

further

noted

that

the

Sub-Adviser’s

fees

are

paid

TICL

from

the

management

fee

TICL

receives

from

the

Fund.

The

Board

concluded

that

the

Management

Rate

charged

the

Fund

reasonable.

International

Equity

Series

The

Expense

Group

for

the

Fund

included

the

Fund,

three

other

international

large-cap

value

funds

and

seven

international

large-cap

core

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

half

basis

point

above

the

median

its

Expense

Group.

The

Board

also

noted

that

the

actual

total

expense

ratio

for

the

Fund

was

below

the

median

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

the

Fund

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

TICL

and

its

affiliates

connection

with

the

operation

each

Fund.

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

that

addresses

the

overall

profitability

FT’s

fund

business,

well

its

profits

providing

investment

management

and

other

services

each

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

its

methodologies

used

calculating

profitability

response

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

the

recent

acquisition

the

Legg

Mason

companies

and

that

management

expects

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

year.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

FRI

and

certain

funds,

has

been

engaged

periodically

review

and

assess

the

allocation

methodologies

used

solely

the

Funds’

Board

with

respect

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

establishing

the

infrastructure

necessary

for

the

type

mutual

fund

operations

conducted

each

Manager

and

its

affiliates

may

not

fully

reflected

the

expenses

allocated

each

Fund

determining

its

profitability,

well

the

fact

that

the

level

profits,

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

management.

part

this

evaluation,

the

Board

considered

management’s

outsourcing

certain

operations,

which

effort

has

required

considerable

upfront

expenditures

each

Manager

but,

over

the

long

run

expected

result

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

improving

shareholder

services

provided

the

Funds,

well

the

need

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

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

Templeton

Institutional

Funds

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Information

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Report

and

systems

enhancements

necessitated

fund

growth,

well

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

all

these

factors,

the

Board

concluded

that

the

level

profits

realized

each

Manager

and

its

affiliates

from

providing

services

each

Fund

was

not

excessive

view

the

nature,

extent,

and

quality

services

provided

each

Fund.

Economies

Scale

The

Board

reviewed

and

considered

the

extent

which

each

Manager

may

realize

economies

scale,

any,

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

scale

for

the

benefit

shareholders.

With

respect

possible

economies

scale,

the

Board

noted

the

existence

management

fee

breakpoints,

which

operate

generally

any

economies

scale

with

Fund’s

shareholders

reducing

the

Fund’s

effective

management

fees

the

Fund

grows

size.

The

Board

considered

the

Managers’

views

that

any

analyses

potential

economies

scale

managing

particular

fund

are

inherently

limited

light

the

joint

and

common

costs

and

investments

the

Managers

incur

across

the

family

funds

whole.

The

Board

noted

that

the

Foreign

Smaller

Companies

Series

and

International

Equity

Series

had

experienced

decrease

assets

and

would

not

expected

demonstrate

additional

economies

scale

the

near

term,

but

concluded

that

the

extent

economies

scale

may

realized

each

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

sharing

benefits

with

the

Fund

and

its

shareholders

the

Fund

grows.

Conclusion

Based

its

review,

consideration

and

evaluation

all

factors

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

each

Management

Agreement

for

additional

one-year

period.

Liquidity

Risk

Management

Program-

Funds

HLIM

Each

Fund

has

adopted

and

implemented

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

required

Rule

22e-4

under

the

Investment

Company

Act

1940

(the

“Liquidity

Rule”).

The

LRMP

designed

assess

and

manage

each

Fund’s

liquidity

risk,

which

defined

the

risk

that

the

Fund

could

not

meet

requests

redeem

issued

the

Fund

without

significant

dilution

remaining

investors’

interests

the

Fund.

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

each

Fund’s

liquidity

risk;

(2)

classification

each

Fund’s

portfolio

holdings

into

one

four

liquidity

Templeton Institutional Funds N-CSRSCertified semi-annual shareholder report (management investment company)