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)

Alison Baur, 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: 6/30/23

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,

2023

Not

FDIC

Insured

May

Lose

Value

Bank

Guarantee

Foreign

Smaller

Companies

Series

International

Equity

Series

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

changes

the

design

and

delivery

annual

and

semiannual

shareholder

reports

beginning

July

2024.

you

have

previously

elected

receive

shareholder

reports

electronically,

you

will

continue

and

need

not

take

any

action.

Otherwise,

paper

copies

the

Fund’s

shareholder

reports

will

mailed

you

beginning

July

2024.

you

would

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

mail,

you

may

make

that

request

any

time

contacting

your

financial

intermediary

(such

broker-dealer

bank)

or,

you

are

direct

investor,

enrolling

franklintempleton.com.

You

may

access

franklintempleton.com

scanning

the

code

below.

ftinstitutional.com

Semiannual

Report

Contents

Foreign

Smaller

Companies

Series

International

Equity

Series

Financial

Highlights

and

Schedules

Investments

Financial

Statements

Notes

Financial

Statements

Shareholder

Information

Visit

franklintempleton.com

for

fund

updates,

access

your

account,

find

helpful

financial

planning

tools.

ftinstitutional.com

Semiannual

Report

Foreign

Smaller

Companies

Series

This

semiannual

report

for

Foreign

Smaller

Companies

Series

(Fund)

covers

the

period

ended

June

30,

2023

Fund

Overview

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

+8.82%

cumulative

total

return

for

the

six

months

under

review.

comparison,

the

Fund’s

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)

USA

Small

Cap

Index-NR,

which

measures

the

performance

global

developed

and

emerging

market

small-cap

equities

excluding

the

U.S.,

posted

+6.84%

cumulative

total

return.

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.

Geographic

Composition

6/30/23

Total

Net

Assets

Europe

44.1%

Asia

40.6%

Latin

America

Caribbean

5.3%

North

America

4.4%

Other

0.8%

Short-Term

Investments

Other

Net

Assets

4.8%

Portfolio

Composition

6/30/23

Total

Net

Assets

Machinery

11.2%

Electronic

Equipment,

Instruments

Compon

ents

8.3%

Leisure

Products

7.6%

Textiles,

Apparel

Luxury

Goods

6.0%

Food

Products

5.0%

Capital

Markets

4.3%

Professional

Services

3.9%

Health

Care

Equipment

Supplies

3.2%

Building

Products

3.0%

Life

Sciences

Tools

Services

2.9%

Banks

2.8%

Specialty

Retail

2.8%

Entertainment

2.7%

Energy

Equipment

Services

2.4%

Other

29.1%

Short-Term

Investments

Other

Net

Assets

4.8%

category

are

listed

full

the

Fund's

Schedule

Investments

(SOI),

which

can

found

later

this

report.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

any

income

and

distributions.

They

not

reflect

any

fees,

expenses

sales

charges.

One

cannot

invest

directly

index,

and

index

not

representative

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

tax

withholding

when

dividends

are

paid.

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

Schedule

Investments

(SOI).

The

SOI

begins

page

International

Equity

Series

ftinstitutional.com

Semiannual

Report

Thank

you

for

your

continued

participation

International

Equity

Series.

look

forward

serving

your

future

investment

needs.

Peter

Nori,

CFA

Lead

Portfolio

Manager

Matthew

Nagle,

CFA

Heather

Waddell,

CFA

Portfolio

Management

Team

Top

Holdings

6/30/23

Company

Industry

Country

Total

Net

Assets

Shell

plc

4.2%

Oil,

Gas

Consumable

Fuels,

Netherlands

plc

4.0%

Oil,

Gas

Consumable

Fuels,

United

Kingdom

Deutsche

Telekom

3.8%

Diversified

Telecommunication

Services,

Germany

TotalEnergies

3.8%

Oil,

Gas

Consumable

Fuels,

France

Sumitomo

Mitsui

Financial

Group,

Inc.

3.0%

Banks,

Japan

GFL

Environmental,

Inc.

3.0%

Commercial

Services

Supplies,

Canada

Samsung

Electronics

Co.

Ltd.

2.8%

Technology

Hardware,

Storage

Peripherals,

South

Korea

Sanofi

2.7%

Pharmaceuticals,

United

States

Lloyds

Banking

Group

plc

2.4%

Banks,

United

Kingdom

AstraZeneca

plc

2.3%

Pharmaceuticals,

United

Kingdom

Performance

Summary

June

30,

2023

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

6/30/23

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

+12.67%

1-Year

+17.95%

5-Year

+12.08%

+2.31%

10-Year

+44.11%

+3.72%

Service

6-Month

+12.64%

1-Year

+17.99%

5-Year

+11.33%

+2.17%

10-Year

+42.07%

+3.57%

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.

Events

such

the

spread

deadly

diseases,

disasters,

and

financial,

political

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

principal.

International

investments

are

subject

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

emerging

markets.

the

extent

the

Fund

invests

companies

specific

country

region,

the

Fund

may

experience

greater

volatility

than

Fund

that

broadly

diversified

geographically.

The

investment

style

may

become

out

favor,

which

may

have

negative

impact

performance.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

the

research

investment

process;

however,

ESG

considerations

may

not

determinative

factor

security

selection.

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

identified

evaluated.

The

Fund’s

prospectus

also

includes

description

the

main

investment

risks.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

the

Fund's

prospectus

available

the

time

publication.

Actual

expenses

may

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

terminated

prior

4/30/24

without

Board

consent.

Additional

amounts

may

voluntarily

waived

and/or

reimbursed

and

may

modified

discontinued

any

time

without

notice.

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.

Total

return

information

based

net

asset

values

calculated

for

shareholder

transactions.

Certain

adjustments

were

made

the

net

assets

the

Fund

12/31/22

for

financial

reporting

purposes.

Accordingly,

adjusted

total

returns

have

been

disclosed

the

Financial

Highlights

and

differ

from

those

reported

here.

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%

0.88%

Service

0.97%

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

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Net

Annualized

Expense

Ratio

Primary

$1,000

$1,126.70

$5.25

$1,019.86

$4.99

1.00%

Service

$1,000

$1,126.40

$5.27

$1,019.84

$5.01

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,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$16.35

$21.80

$23.03

$21.40

$17.96

$25.08

Income

from

investment

operations

Net

investment

income

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

0.09

0.31

0.28

0.17

0.30

0.37

Net

realized

and

unrealized

gains

(losses)

1.33

(5.38)

2.07

1.74

3.79

(4.97)

Total

from

investment

operations

........

1.42

(5.07)

2.35

1.91

4.09

(4.60)

Less

distributions

from:

Net

investment

income

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

—

(0.32)

(0.28)

(0.22)

(0.37)

(0.21)

Net

realized

gains

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

—

(0.06)

(3.30)

(0.06)

(0.28)

(2.31)

Total

distributions

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

—

(0.38)

(3.58)

(0.28)

(0.65)

(2.52)

Net

asset

value,

end

period

..........

$17.77

$16.35

$21.80

$23.03

$21.40

$17.96

Total

return

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

8.69

(23.19)%

10.72%

8.95%

22.86%

(18.48)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.10%

1.02%

1.04%

1.02%

1.01%

Expenses

net

waiver

and

payments

affiliates

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

1.10%

1.02%

1.04%

1.03%

1.02%

1.00%

Net

investment

income

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

1.07%

1.76%

1.13%

0.87%

1.48%

1.54%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$217,887

$353,380

$739,717

$725,098

$782,971

$739,576

Portfolio

turnover

rate

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

21.46%

16.54%

31.09%

34.89%

39.48%

34.10%

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

Schedule

Investments

(unaudited),

June

30,

2023

Foreign

Smaller

Companies

Series

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Industry

Value

Common

Stocks

94.9%

Austria

1.5%

AT&S

Austria

Technologie

Systemtechnik

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

Electronic

Equipment,

Instruments

Components

33,827

1,215,444

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

Commercial

Services

Supplies

15,653

2,138,964

3,354,408

Bahamas

1.6%

OneSpaWorld

Holdings

Ltd.

........

Diversified

Consumer

Services

281,146

3,401,866

Belgium

2.5%

Barco

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

Electronic

Equipment,

Instruments

Components

141,940

3,541,358

Kinepolis

Group

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

Entertainment

41,399

1,864,669

5,406,027

Brazil

3.4%

Camil

Alimentos

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

Food

Products

1,162,600

1,714,115

Dexco

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

Paper

Forest

Products

907,100

1,581,782

Dias

Branco

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

Food

Products

322,100

2,863,515

Tres

Tentos

Agroindustrial

.......

Food

Products

482,900

1,295,882

7,455,294

Canada

3.2%

a,b

Canada

Goose

Holdings,

Inc.

.......

Textiles,

Apparel

Luxury

Goods

56,400

1,003,934

Canadian

Western

Bank

...........

Banks

166,931

3,115,071

Computer

Modelling

Group

Ltd.

......

Energy

Equipment

Services

410,104

2,061,820

North

West

Co.,

Inc.

(The)

..........

Consumer

Staples

Distribution

Retail

37,400

886,510

7,067,335

China

1.6%

JNBY

Design

Ltd.,

Reg

..........

Textiles,

Apparel

Luxury

Goods

856,500

930,483

Xtep

International

Holdings

Ltd.

......

Textiles,

Apparel

Luxury

Goods

2,489,623

2,548,240

3,478,723

Denmark

0.7%

Matas

A/S

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

Specialty

Retail

95,697

1,411,001

Finland

1.9%

Anora

Group

OYJ

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

Beverages

39,559

212,465

Fiskars

OYJ

Abp

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

Household

Durables

71,397

1,205,015

Huhtamaki

OYJ

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

Containers

Packaging

80,286

2,635,111

4,052,591

Germany

6.2%

Adesso

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

Services

13,983

1,890,007

Gerresheimer

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

Life

Sciences

Tools

Services

30,135

3,392,743

Jenoptik

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

Electronic

Equipment,

Instruments

Components

64,131

2,203,448

a,c

Montana

Aerospace

AG,

144A,

Reg

Aerospace

Defense

115,309

1,862,064

Rational

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

Machinery

3,094

2,240,574

Stabilus

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

Machinery

32,286

1,940,961

13,529,797

Greece

0.5%

JUMBO

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

Specialty

Retail

42,966

1,181,598

Hong

Kong

3.0%

Techtronic

Industries

Co.

Ltd.

.......

Machinery

257,500

2,815,866

Value

Partners

Group

Ltd.

..........

Capital

Markets

4,398,000

1,390,514

Templeton

Institutional

Funds

Schedule

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)

Hong

Kong

(continued)

VTech

Holdings

Ltd.

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

Communications

Equipment

360,100

2,364,875

6,571,255

India

0.8%

Exide

Industries

Ltd.

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

Automobile

Components

603,254

1,744,665

Israel

0.8%

Nayax

Ltd.

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

Electronic

Equipment,

Instruments

Components

90,031

1,711,316

Italy

9.9%

Brunello

Cucinelli

SpA

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

Textiles,

Apparel

Luxury

Goods

29,648

2,610,600

Carel

Industries

SpA,

144A,

Reg

...

Building

Products

60,298

1,817,025

Intercos

SpA

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

Personal

Care

Products

135,107

2,270,611

Interpump

Group

SpA

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

Machinery

77,459

4,308,426

LU-VE

SpA

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

Building

Products

13,373

448,034

Sanlorenzo

SpA

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

Leisure

Products

94,203

4,052,100

a,b

Seco

SpA

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

Technology

Hardware,

Storage

Peripherals

351,711

1,967,653

Technogym

SpA,

144A,

Reg

......

Leisure

Products

451,514

4,180,509

21,654,958

Japan

18.9%

Anicom

Holdings,

Inc.

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

Insurance

219,400

959,195

Asics

Corp.

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

Textiles,

Apparel

Luxury

Goods

142,600

4,413,516

Bunka

Shutter

Co.

Ltd.

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

Building

Products

160,700

1,238,316

CKD

Corp.

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

Machinery

136,900

2,245,832

Fuji

Oil

Holdings,

Inc.

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

Food

Products

60,500

837,175

Glory

Ltd.

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

Machinery

56,700

1,137,747

Idec

Corp.

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

Electrical

Equipment

86,100

1,982,672

IDOM,

Inc.

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

Specialty

Retail

294,100

1,795,976

Kaneka

Corp.

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

Chemicals

69,200

1,939,691

Meitec

Corp.

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

Professional

Services

182,000

3,140,821

Nichiha

Corp.

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

Building

Products

139,100

2,983,545

Nihon

Parkerizing

Co.

Ltd.

..........

Chemicals

65,700

490,026

Nissei

ASB

Machine

Co.

Ltd.

........

Machinery

49,100

1,399,603

Qol

Holdings

Co.

Ltd.

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

Consumer

Staples

Distribution

Retail

133,800

1,613,391

Sato

Holdings

Corp.

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

Commercial

Services

Supplies

131,600

1,787,906

Shima

Seiki

Manufacturing

Ltd.

......

Machinery

165,100

2,134,652

Shoei

Co.

Ltd.

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

Automobile

Components

55,400

1,027,774

Square

Enix

Holdings

Co.

Ltd.

.......

Entertainment

24,300

1,130,784

TechnoPro

Holdings,

Inc.

..........

Professional

Services

137,100

2,982,930

Topcon

Corp.

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

Electronic

Equipment,

Instruments

Components

145,800

2,148,459

Tsumura

Co.

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

Pharmaceuticals

142,900

2,646,317

Zojirushi

Corp.

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

Household

Durables

85,600

1,056,812

41,093,140

Netherlands

0.9%

Flow

Traders

Ltd.

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

Capital

Markets

87,875

1,939,057

Norway

1.7%

PhotoCure

ASA

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

Pharmaceuticals

106,625

463,058

TGS

ASA

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

Energy

Equipment

Services

213,984

3,188,709

3,651,767

Philippines

1.0%

Century

Pacific

Food,

Inc.

..........

Food

Products

4,898,200

2,268,588

Templeton

Institutional

Funds

Schedule

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)

Portugal

0.6%

Corticeira

Amorim

SGPS

........

Containers

Packaging

127,431

1,344,763

South

Korea

5.3%

BNK

Financial

Group,

Inc.

..........

Banks

260,142

1,373,256

DGB

Financial

Group,

Inc.

..........

Banks

328,461

1,817,669

Hite

Jinro

Co.

Ltd.

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

Beverages

91,476

1,504,003

i-SENS,

Inc.

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

Health

Care

Equipment

Supplies

214,854

4,033,170

NHN

KCP

Corp.

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

Financial

Services

108,411

830,440

NongShim

Co.

Ltd.

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

Food

Products

6,444

1,946,013

11,504,551

Sweden

3.5%

b,c

Dometic

Group

AB,

144A

..........

Automobile

Components

272,912

1,799,478

Electrolux

Professional

AB,

.......

Machinery

276,059

1,498,028

Granges

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

Metals

Mining

220,200

2,101,100

Thule

Group

AB,

144A,

Reg

.......

Leisure

Products

75,997

2,235,680

7,634,286

Switzerland

4.8%

Bucher

Industries

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

Machinery

7,984

3,533,425

Logitech

International

..........

Technology

Hardware,

Storage

Peripherals

21,508

1,277,575

Medacta

Group

SA,

144A,

Reg

....

Health

Care

Equipment

Supplies

20,736

2,824,097

Siegfried

Holding

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

Life

Sciences

Tools

Services

3,515

2,906,754

10,541,851

Taiwan

8.5%

Chicony

Electronics

Co.

Ltd.

........

Technology

Hardware,

Storage

Peripherals

627,037

1,974,720

Giant

Manufacturing

Co.

Ltd.

........

Leisure

Products

170,482

1,264,781

Johnson

Health

Tech

Co.

Ltd.

.......

Leisure

Products

763,000

1,761,966

King

Yuan

Electronics

Co.

Ltd.

......

Semiconductors

Semiconductor

Equipment

1,962,000

3,601,045

Merida

Industry

Co.

Ltd.

...........

Leisure

Products

266,000

1,901,457

Nan

Pao

Resins

Chemical

Co.

Ltd.

...

Chemicals

265,000

1,401,875

Nien

Made

Enterprise

Co.

Ltd.

......

Household

Durables

108,000

1,190,176

Primax

Electronics

Ltd.

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

Electronic

Equipment,

Instruments

Components

636,000

1,346,075

Shin

Shing

Co.

Ltd.

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

Machinery

395,000

1,148,980

Topkey

Corp.

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

Leisure

Products

172,000

1,068,405

Tripod

Technology

Corp.

...........

Electronic

Equipment,

Instruments

Components

451,000

1,789,525

18,449,005

Thailand

1.6%

Hana

Microelectronics

PCL

.........

Electronic

Equipment,

Instruments

Components

1,552,000

2,086,108

Major

Cineplex

Group

PCL

.........

Entertainment

3,391,700

1,404,544

3,490,652

United

Kingdom

9.3%

Coats

Group

plc

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

Textiles,

Apparel

Luxury

Goods

1,837,686

1,624,367

Greggs

plc

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

Hotels,

Restaurants

Leisure

78,805

2,559,990

Ibstock

plc,

144A,

Reg

...........

Construction

Materials

1,094,926

1,945,388

Johnson

Service

Group

plc

.........

Commercial

Services

Supplies

790,226

1,035,702

Man

Group

plc

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

Capital

Markets

1,170,775

3,251,338

Oxford

Instruments

plc

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

Electronic

Equipment,

Instruments

Components

64,688

2,242,798

Pagegroup

plc

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

Professional

Services

409,554

2,087,899

Rathbones

Group

plc

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

Capital

Markets

116,199

2,749,691

VIDENDUM

plc

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

Household

Durables

107,976

948,936

Templeton

Institutional

Funds

Schedule

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)

United

Kingdom

(continued)

a,c

Watches

Switzerland

Group

plc,

144A

Specialty

Retail

238,542

1,849,500

20,295,609

United

States

1.2%

Axis

Capital

Holdings

Ltd.

..........

Insurance

19,880

1,070,140

IMAX

Corp.

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

Entertainment

85,497

1,452,594

2,522,734

Total

Common

Stocks

(Cost

$157,732,949)

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

206,756,837

Warrants

0.3%

Bahamas

0.3%

OneSpaWorld

Holdings

Ltd.

3/19/24

Diversified

Consumer

Services

262,784

630,682

Total

Warrants

(Cost

$221,371)

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

630,682

Total

Long

Term

Investments

(Cost

$157,954,320)

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

207,387,519

Short

Term

Investments

4.1%

Industry

Principal

Amount

Value

U.S.

Government

and

Agency

Securities

4.0%

United

States

4.0%

FHLB,

7/03/23

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

8,600,000

Total

U.S.

Government

and

Agency

Securities

(Cost

$8,597,707)

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

8,600,000

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.1%

Money

Market

Funds

0.1%

f,g

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

4.699%

.........

283,672

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$283,672)

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

283,672

Total

Short

Term

Investments

(Cost

$8,881,379

)

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

8,883,672

Total

Investments

(Cost

$166,835,699)

99.3%

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

$216,271,191

Other

Assets,

less

Liabilities

0.7%

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

1,616,194

Net

Assets

100.0%

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

$217,887,385

See

Abbreviations

page

Templeton

Institutional

Funds

Schedule

Investments

(unaudited)

Foreign

Smaller

Companies

Series

(continued)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

Non-income

producing.

portion

all

the

security

loan

June

30,

2023.

See

Note

1(d).

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,

2023,

the

aggregate

value

these

securities

was

$19,444,224,

representing

8.9%

net

assets.

The

security

was

issued

discount

basis

with

stated

coupon

rate.

See

Note

1(d)

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,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Primary

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$10.19

$11.96

$15.22

$15.54

$14.87

$21.99

Income

from

investment

operations

Net

investment

income

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

0.17

0.26

1.03

0.64

0.42

Net

realized

and

unrealized

gains

(losses)

1.11

(1.40)

0.55

(0.32)

1.06

(3.66)

Total

from

investment

operations

........

1.28

(1.14)

0.81

0.71

1.70

(3.24)

Less

distributions

from:

Net

investment

income

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

—

(0.10)

(1.46)

(0.67)

(1.02)

(0.42)

Net

realized

gains

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

—

(0.53)

(2.61)

(0.36)

(0.01)

(3.46)

Total

distributions

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

—

(0.63)

(4.07)

(1.03)

(3.88)

Net

asset

value,

end

period

..........

$11.47

$10.19

$11.96

$15.22

$15.54

$14.87

Total

return

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

12.67%

(9.23)%

5.75%

5.30%

11.57%

(14.87)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.04%

0.87%

0.94%

0.87%

0.82%

0.80%

Expenses

net

waiver

and

payments

affiliates

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

1.00%

0.83%

0.91%

0.84%

0.82%

0.80%

f,g

Net

investment

income

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

3.07%

2.35%

1.64%

7.51%

4.13%

1.98%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$181,628

$196,051

$386,291

$447,139

$1,695,980

$2,785,308

Portfolio

turnover

rate

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

9.74%

46.42%

44.73%

89.34%

36.83%

25.60%

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.

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,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Service

Per

operating

performance

(for

outstanding

throughout

the

period)

Net

asset

value,

beginning

period

.....

$10.45

$12.24

$15.48

$15.79

$14.97

$22.07

Income

from

investment

operations

Net

investment

income

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

0.18

0.20

0.24

1.17

0.98

0.38

Net

realized

and

unrealized

gains

(losses)

1.13

(1.38)

0.58

(0.47)

0.70

(3.66)

Total

from

investment

operations

........

1.31

(1.18)

0.82

0.70

1.68

(3.28)

Less

distributions

from:

Net

investment

income

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

—

(0.08)

(1.45)

(0.65)

(0.85)

(0.36)

Net

realized

gains

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

—

(0.53)

(2.61)

(0.36)

(0.01)

(3.46)

Total

distributions

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

—

(0.61)

(4.06)

(1.01)

(0.86)

(3.82)

Net

asset

value,

end

period

..........

$11.76

$10.45

$12.24

$15.48

$15.79

$14.97

Total

return

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

12.5

(9.29)%

5.69%

5.16%

11.34%

(15.01)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

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

1.04%

1.01%

1.04%

1.01%

0.97%

0.95%

Expenses

net

waiver

and

payments

affiliates

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

1.00%

0.97%

1.00%

0.98%

0.97%

0.95%

f,g

Net

investment

income

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

3.19%

1.71%

1.52%

8.42%

3.98%

1.83%

Supplemental

data

Net

assets,

end

period

(000’s)

........

$139

$123

$521

$448

$700

$5,375

Portfolio

turnover

rate

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

9.74%

46.42%

44.73%

89.34%

36.83%

25.60%

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.

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

Schedule

Investments

(unaudited),

June

30,

2023

International

Equity

Series

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Industry

Value

Common

Stocks

97.1%

Belgium

1.4%

Anheuser-Busch

InBev

SA/NV

......

Beverages

46,247

2,621,402

Canada

3.0%

GFL

Environmental,

Inc.

...........

Commercial

Services

Supplies

140,700

5,459,160

Chile

1.3%

Antofagasta

plc

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

Metals

Mining

125,487

2,333,614

China

1.3%

NXP

Semiconductors

..........

Semiconductors

Semiconductor

Equipment

11,959

2,447,768

France

10.7%

Cie

Saint-Gobain

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

Building

Products

44,662

2,719,557

Danone

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

Food

Products

58,543

3,588,046

Eiffage

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

Construction

Engineering

19,450

2,030,933

TotalEnergies

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

Oil,

Gas

Consumable

Fuels

121,326

6,965,313

Veolia

Environnement

..........

Multi-Utilities

128,118

4,056,006

19,359,855

Germany

13.9%

Bayer

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

Pharmaceuticals

54,351

3,008,879

Continental

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

Automobile

Components

29,726

2,246,017

Deutsche

Boerse

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

Capital

Markets

17,005

3,139,658

Deutsche

Telekom

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

Diversified

Telecommunication

Services

320,687

6,997,556

Fresenius

Medical

Care

Co.

KGaA

Health

Care

Providers

Services

68,436

3,270,933

Infineon

Technologies

..........

Semiconductors

Semiconductor

Equipment

71,067

2,926,967

SAP

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

Software

26,793

3,660,457

25,250,467

Hungary

1.0%

Richter

Gedeon

Nyrt.

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

Pharmaceuticals

76,040

1,876,422

Ireland

2.2%

CRH

plc

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

Construction

Materials

71,519

3,945,873

Japan

19.4%

Hitachi

Ltd.

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

Industrial

Conglomerates

53,500

3,326,904

Honda

Motor

Co.

Ltd.

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

Automobiles

133,100

4,032,672

Isuzu

Motors

Ltd.

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

Automobiles

255,700

3,102,387

KDDI

Corp.

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

Wireless

Telecommunication

Services

90,400

2,792,221

Mitsubishi

Electric

Corp.

...........

Electrical

Equipment

277,000

3,916,450

Nitori

Holdings

Co.

Ltd.

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

Specialty

Retail

16,600

1,864,344

Sony

Group

Corp.

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

Household

Durables

35,900

3,241,150

Sumitomo

Metal

Mining

Co.

Ltd.

.....

Metals

Mining

73,600

2,376,299

Sumitomo

Mitsui

Financial

Group,

Inc.

Banks

128,100

5,491,056

Takeda

Pharmaceutical

Co.

Ltd.

.....

Pharmaceuticals

83,900

2,636,718

Tokyo

Electron

Ltd.

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

Semiconductors

Semiconductor

Equipment

16,800

2,420,014

35,200,215

Netherlands

6.8%

ING

Groep

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

Banks

226,393

3,052,419

SBM

Offshore

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

Energy

Equipment

Services

119,984

1,644,894

Shell

plc

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

Oil,

Gas

Consumable

Fuels

255,022

7,607,736

12,305,049

Singapore

1.7%

United

Overseas

Bank

Ltd.

.........

Banks

148,100

3,073,375

Templeton

Institutional

Funds

Schedule

Investments

(unaudited)

International

Equity

Series

(continued)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

Industry

Value

Common

Stocks

(continued)

South

Korea

4.5%

Financial

Group,

Inc.

...........

Banks

51,513

1,869,762

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

Peripherals

91,439

5,035,237

Shinhan

Financial

Group

Co.

Ltd.

....

Banks

51,868

1,340,985

8,245,984

Spain

1.7%

Redeia

Corp.

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

Electric

Utilities

180,941

3,043,168

Switzerland

1.5%

Adecco

Group

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

Professional

Services

84,753

2,775,931

Taiwan

1.9%

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

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

Semiconductors

Semiconductor

Equipment

188,492

3,481,237

Thailand

0.8%

Kasikornbank

PCL

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

Banks

400,600

1,471,850

United

Kingdom

19.5%

AstraZeneca

plc

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

Pharmaceuticals

28,955

4,150,823

BAE

Systems

plc

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

Aerospace

Defense

317,730

3,746,433

plc

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

Oil,

Gas

Consumable

Fuels

1,251,318

7,285,646

Compass

Group

plc

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

Hotels,

Restaurants

Leisure

92,210

2,582,171

Smith

plc

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

Containers

Packaging

613,146

2,121,717

Lloyds

Banking

Group

plc

..........

Banks

7,913,750

4,386,977

Smith

Nephew

plc

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

Health

Care

Equipment

Supplies

247,721

3,996,565

Standard

Chartered

plc

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

Banks

207,684

1,806,870

Unilever

plc

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

Personal

Care

Products

68,337

3,558,597

Smith

plc

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

Specialty

Retail

95,983

1,892,498

35,528,297

United

States

4.5%

ICON

plc

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

Life

Sciences

Tools

Services

12,800

3,202,560

Sanofi

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

Pharmaceuticals

45,712

4,921,612

8,124,172

Total

Common

Stocks

(Cost

$134,099,639)

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

176,543,839

Escrows

and

Litigation

Trusts

0.0%

b,c

Hemisphere

Properties

India

Ltd.,

Escrow

Account

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

2,094,964

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

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

—

Total

Long

Term

Investments

(Cost

$134,099,639)

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

176,543,839

Templeton

Institutional

Funds

Schedule

Investments

(unaudited)

International

Equity

Series

(continued)

ftinstitutional.com

Semiannual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Short

Term

Investments

1.9%

Industry

Value

Money

Market

Funds

1.9%

United

States

1.9%

d,e

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

4.699%

.........

3,511,548

Total

Money

Market

Funds

(Cost

$3,511,548)

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

3,511,548

Total

Short

Term

Investments

(Cost

$3,511,548

)

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

3,511,548

Total

Investments

(Cost

$137,611,187)

99.0%

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

$180,055,387

Other

Assets,

less

Liabilities

1.0%

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

1,711,630

Net

Assets

100.0%

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

$181,767,017

portion

all

the

security

loan

June

30,

2023.

See

Note

1(d).

Non-income

producing.

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.

Templeton

Institutional

Funds

Schedule

Investments

(unaudited)

International

Equity

Series

(continued)

ftinstitutional.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Semiannual

Report

June

30,

2023,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(c).

See

Note 6

regarding

other

derivative

information.

Futures

Contracts

Description

Type

Number

Contracts

Notional

Amount

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Equity

contracts

MSCI

EAFE

Index

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

Long

2,155,500

9/15/23

(22,433)

Total

Futures

Contracts

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

$(22,433)

period

end.

Templeton

Institutional

Funds

Financial

Statements

Assets

and

Liabilities

June

30,

2023

(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

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

$166,552,027

$134,099,639

Cost

Non-controlled

affiliates

(Note

)

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

283,672

3,511,548

Value

Unaffiliated

issuers

(Includes

securities

loaned

$4,368,953

and

$2,537,081

respectively)

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

$215,987,519

$176,543,839

Value

Non-controlled

affiliates

(Note

)

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

283,672

3,511,548

Cash

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

1,414,834

—

Foreign

currency,

value

(cost

—

and

$189,326

respectively)

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

—

188,999

Receivables:

Investment

securities

sold

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

9,993

—

Capital

sold

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

186,093

104,234

Dividends

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

877,535

3,425,315

European

Union

tax

reclaims

(Note

)

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

—

691,972

Deposits

with

brokers

for:

Futures

contracts

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

—

74,780

Variation

margin

futures

contracts

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

—

24,120

Total

assets

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

218,759,646

184,564,807

Liabilities:

Payables:

Investment

securities

purchased

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

239,138

—

Capital

redeemed

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

66,768

8,091

Management

fees

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

172,495

110,919

Transfer

agent

fees

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

878

5,855

Trustees'

fees

and

expenses

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

6,532

754

IRS

closing

agreement

payments

for

European

Union

tax

reclaims

(Note

)

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

—

2,357,023

Payable

upon

return

securities

loaned

(Note

)

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

283,672

—

Accrued

expenses

and

other

liabilities

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

102,778

315,148

Total

liabilities

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

872,261

2,797,790

Net

assets,

value

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

$217,887,385

$181,767,017

Net

assets

consist

of:

Paid-in

capital

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

$185,957,592

$130,573,250

Total

distributable

earnings

(losses)

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

31,929,793

51,193,767

Net

assets,

value

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

$217,887,385

$181,767,017

outstanding

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

12,262,240

Net

asset

value

per

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

$17.77

International

Equity

Series

Primary

Net

assets

value

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

$181,628,177

outstanding

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

15,829,853

Net

asset

value

per

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

$11.47

Service

Net

assets,

value

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

$138,840

outstanding

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

11,803

Net

asset

value

per

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

$11.76

Templeton

Institutional

Funds

Financial

Statements

Operations

for

the

six

months

ended

June

30,

2023

(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

$346,663

and

$252,672,

respectively)

Unaffiliated

issuers

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

$2,482,002

$3,955,309

Non-controlled

affiliates

(Note

)

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

—

77,114

Interest:

Unaffiliated

issuers

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

100,390

1,745

Income

from

securities

loaned:

Unaffiliated

entities

(net

fees

and

rebates)

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

92,719

1,482

Non-controlled

affiliates

(Note

)

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

52,925

—

Other

income

(Note

)

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

—

11,959

Less:

IRS

closing

agreement

payments

for

European

Union

tax

reclaims

(Note

)

.........

—

(74,993)

Total

investment

income

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

2,728,036

3,972,616

Expenses:

Management

fees

(Note

)

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

1,195,630

757,526

Transfer

agent

fees:

(Note

)

Primary

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

—

25,076

Service

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

—

Transfer

agent

fees

(Note

)

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

29,326

—

Sub-transfer

agent

fees:

(Note

)

Service

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

—

Custodian

fees

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

26,526

8,499

Reports

shareholders

fees

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

4,157

2,055

Registration

and

filing

fees

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

33,677

22,465

Professional

fees

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

42,772

86,126

Trustees'

fees

and

expenses

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

29,275

15,242

Other

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

28,317

96,796

Total

expenses

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

1,389,680

1,013,802

Expenses

waived/paid

affiliates

(Note

and

)

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

(3,647)

(40,561)

Net

expenses

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

1,386,033

973,241

Net

investment

income

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

1,342,003

2,999,375

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

18,447,351

7,428,888

Foreign

currency

transactions

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

145,582

(55,642)

Futures

contracts

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

—

144,628

Net

realized

gain

(loss)

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

18,592,933

7,517,874

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

7,833,897

12,436,169

Translation

other

assets

and

liabilities

denominated

foreign

currencies

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

(5,022)

85,550

Futures

contracts

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

—

45,268

Net

change

unrealized

appreciation

(depreciation)

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

7,828,875

12,566,987

Net

realized

and

unrealized

gain

(loss)

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

26,421,808

20,084,861

Net

increase

(decrease)

net

assets

resulting

from

operations

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

$27,763,811

$23,084,236

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,

2023

(unaudited)

Year

Ended

December

31,

2022

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

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

$1,342,003

$9,154,319

$2,999,375

$6,213,919

Net

realized

gain

(loss)

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

18,592,933

(30,389,771)

7,517,874

12,372,227

Net

change

unrealized

appreciation

(depreciation)

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

7,828,875

(156,503,588)

12,566,987

(49,923,932)

Net

increase

(decrease)

net

assets

resulting

from

operations

27,763,811

(177,739,040)

23,084,236

(31,337,786)

Distributions

shareholders:

Primary

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

—

(12,095,509)

Service

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

—

(7,083)

Distributions

shareholders

.........

—

(8,550,231)

—

Total

distributions

shareholders

.....

—

(8,550,

231)

—

(12,102,592)

Capital

transactions:

(Note

)

Primary

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

—

(37,491,651)

(146,821,378)

Service

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

—

661

(376,524)

Capital

transactions

(Note

)

.....

(163,256,536)

(200,048,009)

—

Total

capital

transactions

.......

(163,256,536)

(200,048,009)

(37,490,990)

(147,197,902)

Net

increase

(decrease)

net

assets

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

(135,492,725)

(386,337,280)

(14,406,754)

(190,638,280)

Net

assets:

Beginning

period

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

353,380,110

739,717,390

196,173,771

386,812,051

End

period

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

$217,887,385

$353,380,110

$181,767,017

$196,173,771

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).

The

Funds

the

accounting

and

reporting

guidance

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

International

Equity

Series

offers

Primary

and

Service

Shares.

Each

class

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

Board

has

designated

the

Funds’

investment

manager

the

valuation

designee

and

has

responsibility

for

oversight

valuation.

The

investment

manager

assisted

the

Funds'

administrator

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

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

in open-end mutual

funds

are

valued

the

closing

NAV.

The

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,

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

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

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

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,

2023,

certain

securities

may

have

been

fair

valued

using

these

procedures,

which

case

the

securities

were

categorized

Level

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.

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.

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

Organization

and

Significant

Accounting

Policies

(continued)

Financial

Instrument

Valuation

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

accounted

for

variation

margin

payable

receivable

the

Statements

Assets

and

Liabilities.

June

30,

2023,

Foreign

Smaller

Companies

Series

had

futures

contracts.

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.

Additionally,

the

Foreign

Smaller

Companies

Series

and

International

Equity

Series

held

$4,443,702

and

$2,670,556,

respectively

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.

Any

fees

associated

with

these

filings

are

reflected

other

expenses

the

Statements

Operations.

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.

International

Equity

Series

determined

enter

into

closing

agreement

with

the

IRS

and

recorded

the

estimated

payments

reduction

income,

reflected

the

Statements

Operations.

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,

2023, 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

Fund

invests.

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

to 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,

2023,

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,

2023

sold

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

531,311

$9,257,685

redeemed

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

(9,885,755)

(172,514,221)

Net

increase

(decrease)

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

(9,354,444)

$(163,256,536)

Year

ended

December

31,

2022

sold

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

4,197,769

$75,350,548

issued

reinvestment

distributions

..........

520,814

8,259,148

redeemed

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

(17,038,173)

(283,657,705)

Net

increase

(decrease)

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

(12,319,590)

$(200,048,009)

International

Equity

Series

Amount

Primary

Six

Months

ended

June

30,

2023

sold

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

818,629

$9,030,409

redeemed

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

(4,232,760)

(46,522,060)

Net

increase

(decrease)

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

(3,414,131)

$(37,491,651)

Year

ended

December

31,

2022

sold

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

5,546,145

$61,560,957

issued

reinvestment

distributions

..........

1,197,455

11,551,000

redeemed

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

(19,788,709)

(219,933,335)

Net

increase

(decrease)

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

(13,045,109)

$(146,821,378)

Service

Six

Months

ended

June

30,

2023

sold

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

$687

redeemed

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

(2)

(26)

Net

increase

(decrease)

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

$661

Year

ended

December

31,

2022

sold

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

2,911

$37,138

issued

reinvestment

distributions

..........

716

7,083

redeemed

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

(34,473)

(420,745)

Net

increase

(decrease)

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

(30,846)

$(376,524)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

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

Effective

May

2023,

Foreign

Smaller

Companies

Series

pays

investment

management

fee,

calculated

daily

and

paid

monthly,

TIC

based

the

average

daily

net

assets

the

Fund

follows:

Prior

May

2023,

Foreign

Smaller

Companies

Series

paid

investment

management

fee,

calculated

daily

and

paid

monthly,

TIC

based

the

average

daily

net

assets

the

Fund

follows:

Effective

May

2023,

International

Equity

Series

pays

investment

management

fee,

calculated

daily

and

paid

monthly,

TIC

based

the

average

daily

net

assets

the

Fund

follows:

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)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.950%

and

including

$500

million

0.930%

Over

$500

million,

and

including

billion

0.910%

Over

billion,

and

including

billion

0.890%

Over

billion,

and

including

$10

billion

0.870%

Over

$10

billion,

and

including

$15

billion

0.850%

excess

$15

billion

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

$500

million

0.755%

Over

$500

million,

and

including

billion

0.735%

Over

billion,

and

including

billion

0.715%

Over

billion,

and

including

$10

billion

0.695%

Over

$10

billion,

and

including

$15

billion

0.675%

excess

$15

billion

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Prior

May

2023,

International

Equity

Series

paid

investment

management

fee,

calculated

daily

and

paid

monthly,

TIC

based

the

average

daily

net

assets

the

Fund

follows:

For

the

period

ended

June

30,

2023,

each

Fund's

annualized

gross

effective

investment

management

fee

rate

based

average

daily

net

assets

was

follows:

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.

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.

Effective

October

2022,

the

fees

are

based

annualized

asset

based

fee

0.016%

plus

reduced

transaction

based

fee.

Prior

October

2022,

the

fees

were

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,

2023,

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.

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%

Foreign

Smaller

Companies

Series

International

Equity

Series

Transfer

agent

fees

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

$28,474

$23,199

Transactions

with

Affiliates

(continued)

Management

Fees

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

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,

2023,

investments

affiliated

management

investment

companies

were

follows:

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,

2024.

Total

expenses

waived

paid

are

not

subject

recapture

subsequent

the

Fund's

fiscal

year

end.

Income

Taxes

For

tax

purposes,

capital

losses

may

carried

over

offset

future

capital

gains.

December

31,

2022,

the

capital

loss

carryforwards

were

follows:

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,

4.699%

$4,656,168

$11,564,278

$(15,936,774)

$—

$283,672

283,672

$52,925

Total

Affiliated

Securities

...

$4,656,168

$11,564,278

$(15,936,774)

$—

$283,672

$52,925

International

Equity

Series

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

4.699%

7,572,866

32,045,191

(36,106,509)

—

3,511,548

77,114

Total

Affiliated

Securities

...

$7,572,866

$32,045,191

$(36,106,509)

$—

$3,511,548

$77,114

Foreign

Smaller

Companies

Series

Capital

loss

carryforwards

not

subject

expiration:

Short

term

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

13,376,151

Long

term

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

17,803,676

Total

capital

loss

carryforwards

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

$31,179,827

Transactions

with

Affiliates

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

June

30,

2023

the

cost

investments

and

net

unrealiz

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

currency

transactions

and

wash

sales.

Investment

Transactions

Purchases

and

sales

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2023,

were

follows:

June

30,

2023,

connection

with

securities

lending

transactions,

certain

all

Funds

loaned

investments

and

received

cash

collateral

follows:

Other

Derivative

Information

June

30,

2023,

investments

derivative

contracts

are

reflected

the

Statements

Assets

and

Liabilities

follows:

Foreign

Smaller

Companies

Series

International

Equity

Series

Cost

investments

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

$174,323,015

$143,255,634

Unrealized

appreciation

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

$63,671,085

$46,307,671

Unrealized

depreciation

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

(21,722,909)

(9,530,351)

Net

unrealized

appreciation

(depreciation)

.......

$41,948,176

$36,777,320

Foreign

Smaller

Companies

Series

International

Equity

Series

Purchases

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

$52,120,967

$18,359,418

Sales

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

$207,808,832

$48,104,385

Foreign

Smaller

Companies

Series

International

Equity

Series

Securities

lending

transactions

Equity

investments

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

$283,672

$—

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

22,433

Income

Taxes

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

For

the

period

ended

June

30,

2023,

the

effect

derivative

contracts

the

Statements

Operations

was

follows:

For

the

period

ended

June

30,

2023,

the

average

month

end

notional

amount

futures

contracts

was

$2,081,429.

See

Note

1(c) 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.

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

2024.

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

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

(continued)

Total

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

$—

$22,433

This

amount

reflects

the

cumulative

appreciation

(depreciation)

futures

contracts

reported

the

Schedule

Investments.

Only

the

variation

margin

receivable/payable

period

end

separately

reported

within

the

Statement

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

cash

upon

receipt

payment.

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

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

$144,628

Futures

contracts

$45,268

Total

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

$144,628

$45,268

Other

Derivative

Information

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

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,

2023,

the

Funds

did

not

use

the

Global

Credit

Facility.

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,

2023,

valuing

the

Funds'

assets

and

liabilities

carried

fair

value,

follows:

Level

Total

Foreign

Smaller

Companies

Series

Assets:

Investments

Securities:

Common

Stocks

Austria

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

—

3,354,408

—

3,354,408

Bahamas

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

3,401,866

—

3,401,866

Belgium

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

—

5,406,027

—

5,406,027

Brazil

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

7,455,294

—

7,455,294

Canada

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

7,067,335

—

7,067,335

China

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

—

3,478,723

—

3,478,723

Denmark

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

1,411,001

—

1,411,001

Finland

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

—

4,052,591

—

4,052,591

Germany

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

—

13,529,797

—

13,529,797

Greece

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

1,181,598

—

1,181,598

Hong

Kong

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

—

6,571,255

—

6,571,255

India

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

—

1,744,665

—

1,744,665

Israel

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

—

1,711,316

—

1,711,316

Italy

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

2,718,645

18,936,313

—

21,654,958

Japan

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

—

41,093,140

—

41,093,140

Netherlands

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

1,939,057

—

1,939,057

Norway

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

—

3,651,767

—

3,651,767

Philippines

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

2,268,588

—

2,268,588

Portugal

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

1,344,763

—

1,344,763

South

Korea

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

—

11,504,551

—

11,504,551

Sweden

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

—

7,634,286

—

7,634,286

Switzerland

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

1,277,575

9,264,276

—

10,541,851

Taiwan

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

—

18,449,005

—

18,449,005

Thailand

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

—

3,490,652

—

3,490,652

United

Kingdom

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

9,646,691

10,648,918

—

20,295,609

United

States

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

2,522,734

—

2,522,734

Credit

Facility

(continued)

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.

10.

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

Foreign

Smaller

Companies

Series

(continued)

Assets:

(continued)

Investments

Securities:

Warrants

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

630,682

—

630,682

Short

Term

Investments

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

283,672

8,600,000

—

8,883,672

Total

Investments

Securities

...........

$43,149,501

$173,121,690

$—

$216,271,191

International

Equity

Series

Assets:

Investments

Securities:

Common

Stocks

Belgium

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

—

2,621,402

—

2,621,402

Canada

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

5,459,160

—

5,459,160

Chile

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

—

2,333,614

—

2,333,614

China

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

2,447,768

—

2,447,768

France

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

—

19,359,855

—

19,359,855

Germany

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

—

25,250,467

—

25,250,467

Hungary

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

—

1,876,422

—

1,876,422

Ireland

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

—

3,945,873

—

3,945,873

Japan

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

—

35,200,215

—

35,200,215

Netherlands

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

—

12,305,049

—

12,305,049

Singapore

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

—

3,073,375

—

3,073,375

South

Korea

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

—

8,245,984

—

8,245,984

Spain

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

—

3,043,168

—

3,043,168

Switzerland

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

—

2,775,931

—

2,775,931

Taiwan

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

—

3,481,237

—

3,481,237

Thailand

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

—

1,471,850

—

1,471,850

United

Kingdom

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

—

35,528,297

—

35,528,297

United

States

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

3,202,560

4,921,612

—

8,124,172

Escrows

and

Litigation

Trusts

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

—

Short

Term

Investments

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

3,511,548

—

3,511,548

Total

Investments

Securities

...........

$14,621,036

$165,434,351

$—

$180,055,387

Liabilities:

Other

Financial

Instruments:

Futures

contracts

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

22,433

—

22,433

Total

Other

Financial

Instruments

.........

$22,433

$—

$22,433

Includes

foreign

securities

valued

$164,521,690,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

financial

instruments

determined

have

value.

Includes

foreign

securities

valued

$165,434,351,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Fair

Value

Measurements

(continued)

Templeton

Institutional

Funds

Notes

Financial

Statements

(unaudited)

ftinstitutional.com

Semiannual

Report

Abbreviations

Selected

Portfolio

FHLB

Federal

Home

Loan

Banks

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)

March

27,

2023

15(c)

Meeting

meeting

held

March

27,

2023

(March

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

(each

Management

Agreement),

for

the

period

May

2023

through

June

30,

2023

(Stub

Period).

The

Independent

Trustees

noted

that

each

Fund’s

annual

contract

review

was

historically

held

the

February

Board

meeting

and

that

management

proposed

move

the

contract

review

the

May

Board

meeting.

The

Independent

Trustees

further

noted

management’s

explanation

that,

effect

this

change,

the

Board

needed

consider

the

renewal

each

Fund’s

Management

Agreement(s)

prior

their

current

April

30,

2023

expiration

date.

The

Independent

Trustees

also

noted

that

management

would

ask

them

consider

the

continuation

each

Management

Agreement

again

the

May

Board

meeting

for

the

12-month

period

beginning

July

2023.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

considering

whether

approve

the

continuation

each

Management

Agreement

for

the

Stub

Period.

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

March

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

Managers

Independent

Trustee

counsel

behalf

the

Independent

Trustees

connection

with

the

annual

contract

renewal

process.

addition,

prior

the

March

Meeting,

the

Independent

Trustees

held

virtual

contract

renewal

meeting

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

and

the

March

Meeting.

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

(Factors).

approving

the

continuance

each

Management

Agreement,

the

Board,

including

majority

the

Independent

Trustees,

determined

that

the

terms

the

Management

Agreements

are

fair

and

reasonable

and

that

the

continuance

each

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

Templeton

Institutional

Funds

Shareholder

Information

ftinstitutional.com

Semiannual

Report

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.

The

Board

acknowledged

management’s

continued

development

strategies

address

areas

heightened

concern

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

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

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

technological

innovation

and

advancement

and

investments

promote

alternative

investing.

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

December

31,

2022.

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

least

80%

the

portfolio

market

value

invested

non-US

securities

with

market

capitalization

less

than

billion.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-

and

10-year

periods

was

below

the

median

its

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

and

the

second

quintile

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

its

Performance

Customized

Peer

Group.

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

this

period.

The

Board

discussed

the

performance

the

Fund

with

management

and

management

explained

that

the

Fund

employs

small

cap

value

strategy

and

invests

securities

with

market

capitalizations

that

not

exceed

billion,

whereas

the

Fund’s

Performance

Universe

falls

within

Broadridge’s

growth

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