N-CSRS 1 ncsrs.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSRS CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08962 --------- FRANKLIN TEMPLETON MONEY FUND TRUST ----------------------------------- (Exact name of registrant as specified in charter) ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 ------------------------------------------------ (Address of principal executive offices) (Zip code) CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 ------------------------------------------------------------- (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (650) 312-2000 -------------- Date of fiscal year end: 6/30 ---- Date of reporting period: 12/31/07 -------- ITEM 1. REPORTS TO STOCKHOLDERS. [GRAPHIC OMITTED] -------------------------------------------------------------------------------- DECEMBER 31, 2007 -------------------------------------------------------------------------------- SEMIANNUAL REPORT AND SHAREHOLDER LETTER INCOME -------------------------------------------------------------------------------- WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL? FRANKLIN TEMPLETON MONEY FUND Eligible shareholders can sign up for eDelivery at franklintempleton.com. See inside for details. -------------------------------------------------------------------------------- [LOGO](R) FRANKLIN TEMPLETON INVESTMENTS FRANKLIN o Templeton o Mutual Series Franklin Templeton Investments GAIN FROM OUR PERSPECTIVE(R) Franklin Templeton's distinct multi-manager structure combines the specialized expertise of three world-class investment management groups--Franklin, Templeton and Mutual Series. SPECIALIZED EXPERTISE Each of our portfolio management groups operates autonomously, relying on its own research and staying true to the unique investment disciplines that underlie its success. FRANKLIN. Founded in 1947, Franklin is a recognized leader in fixed income investing and also brings expertise in growth- and value-style U.S. equity investing. TEMPLETON. Founded in 1940, Templeton pioneered international investing and, in 1954, launched what has become the industry's oldest global fund. Today, with offices in over 25 countries, Templeton offers investors a truly global perspective. MUTUAL SERIES. Founded in 1949, Mutual Series is dedicated to a unique style of value investing, searching aggressively for opportunity among what it believes are undervalued stocks, as well as arbitrage situations and distressed securities. TRUE DIVERSIFICATION Because our management groups work independently and adhere to different investment approaches, Franklin, Templeton and Mutual Series funds typically have distinct portfolios. That's why our funds can be used to build truly diversified allocation plans covering every major asset class. RELIABILITY YOU CAN TRUST At Franklin Templeton Investments, we seek to consistently provide investors with exceptional risk-adjusted returns over the long term, as well as the reliable, accurate and personal service that has helped us become one of the most trusted names in financial services. -------------------------------------------------------------------------------- MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS -------------------------------------------------------------------------------- [GRAPHIC OMITTED] Not part of the semiannual report Contents SHAREHOLDER LETTER ........................................................ 1 SEMIANNUAL REPORT Franklin Templeton Money Fund ............................................. 3 Performance Summary ....................................................... 5 Your Fund's Expenses ..................................................... 6 Financial Highlights and Statement of Investments ......................... 8 Financial Statements ...................................................... 13 Notes to Financial Statements ............................................. 16 The Money Market Portfolios ............................................... 21 Shareholder Information ................................................... 32 -------------------------------------------------------------------------------- Semiannual Report Franklin Templeton Money Fund YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin Templeton Money Fund seeks to provide as high a level of current income as is consistent with preservation of shareholders' capital and liquidity. The Fund invests through The Money Market Portfolio (the Portfolio) mainly in high-quality, short-term U.S. dollar denominated money market securities of domestic and foreign issuers. The Fund attempts to maintain a stable $1.00 share price. -------------------------------------------------------------------------------- PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN WILL FLUCTUATE. CURRENT PERFORMANCE MAY DIFFER FROM FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236 FOR MOST RECENT MONTH-END PERFORMANCE. -------------------------------------------------------------------------------- This semiannual report for Franklin Templeton Money Fund covers the period ended December 31, 2007. PERFORMANCE OVERVIEW Declining short-term interest rates during the period under review resulted in a decrease in the Fund's yield. For the six-month reporting period, the Fund's Class A, B, C and R shares' seven-day effective yields fell from 4.86%, 4.13%, 4.12% and 4.33% to 4.44%, 3.77%, 3.79% and 3.91%, respectively. -------------------------------------------------------------------------------- AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY OR INSTITUTION. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. -------------------------------------------------------------------------------- ECONOMIC AND MARKET OVERVIEW The U.S. economy decelerated during the six-month period ended December 31, 2007. In the third quarter, gross domestic product (GDP) growth advanced at a 4.9% annualized rate, the fastest pace in four years. During the reporting period, consumer spending and personal income supported economic expansion, but signs of a slowing economy became evident as a number of indicators reflected a housing market correction, financial market strains and softening business and consumer spending, as well as upward inflation pressures from increasing food, energy and commodity prices and a weaker dollar. In the fourth quarter, GDP growth slowed to an estimated 0.6% annualized rate. Oil prices exhibited continued volatility, reaching a historical high in November. Core inflation, which excludes food and energy costs, rose modestly for the period, signaling that inflation risk remains. For December 2007, core inflation had a 12-month increase of 2.4%. 1 The Federal Reserve Board's (Fed's) preferred measure of inflation, the core personal consumption expenditures price index, reported a 12-month increase of 2.2%. 2 1. Source: Bureau of Labor Statistics. 2. Source: Bureau of Economic Analysis. THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE SOI BEGINS ON PAGE 12. Semiannual Report | 3 PORTFOLIO BREAKDOWN 12/31/07 -------------------------------------------------------------------------------- % OF TOTAL NET ASSETS -------------------------------------------------------------------------------- Certificates of Deposit 67.7% -------------------------------------------------------------------------------- Commercial Paper 25.9% -------------------------------------------------------------------------------- Bank Notes 4.2% -------------------------------------------------------------------------------- Repurchase Agreements 1.3% -------------------------------------------------------------------------------- U.S. Government Agency Securities 0.3% -------------------------------------------------------------------------------- Other Net Assets 0.6% -------------------------------------------------------------------------------- As investor uncertainty continued in the latter half of 2007, the Fed was committed to act in an effort to restore normalcy to U.S. financial markets. The Fed cut the discount rate (the Fed's interest rate charged to member banks) four times, bringing the rate to 4.75%. It also lowered the federal funds target rate three times. Minutes released from its December meeting, in which the Fed lowered the federal funds target rate to 4.25%, cited an uncertain outlook for economic growth and inflation and the need for the committee to be "exceptionally alert to economic and financial developments." Over the period, investors sought relative safety in short-term U.S. Treasuries, Treasury yields declined and the yield curve steepened. Short-term, two- and five-year yields declined significantly, with the two-year bill yielding 3.05% at the end of December, down from 4.87% a year earlier. The 10-year U.S. Treasury note ended December yielding 4.04%, compared with 5.03% at the beginning of the period. INVESTMENT STRATEGY Consistent with our strategy, we invest, through the Portfolio, mainly in high-quality, short-term U.S. dollar denominated money market securities of domestic and foreign issuers, including bank obligations, commercial paper, repurchase agreements and U.S. government securities. We maintain a dollar-weighted average portfolio maturity of 90 days or less. We seek to provide shareholders with a high-quality, conservative investment vehicle; thus, we do not invest the Fund's cash in derivatives or other relatively volatile securities that we believe involve undue risk. MANAGER'S DISCUSSION We continued to invest the Portfolio's assets in high-quality money market securities. For example, on December 31, 2007, 100% of the securities purchased for the Portfolio carried short-term credit ratings of A-1 or P-1, or higher, by independent credit rating agency Standard & Poor's or Moody's Investors Service. 3 We appreciate your support, welcome new shareholders and look forward to serving your investment needs in the years ahead. 3. These do not indicate ratings of the Fund. THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS AS OF DECEMBER 31, 2007, THE END OF THE REPORTING PERIOD. THE WAY WE IMPLEMENT OUR MAIN INVESTMENT STRATEGIES AND THE RESULTING PORTFOLIO HOLDINGS MAY CHANGE DEPENDING ON FACTORS SUCH AS MARKET AND ECONOMIC CONDITIONS. THESE OPINIONS MAY NOT BE RELIED UPON AS INVESTMENT ADVICE OR AN OFFER FOR A PARTICULAR SECURITY. THE INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET, COUNTRY, INDUSTRY, SECURITY OR THE FUND. STATEMENTS OF FACT ARE FROM SOURCES CONSIDERED RELIABLE, BUT THE INVESTMENT MANAGER MAKES NO REPRESENTATION OR WARRANTY AS TO THEIR COMPLETENESS OR ACCURACY. ALTHOUGH HISTORICAL PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, THESE INSIGHTS MAY HELP YOU UNDERSTAND OUR INVESTMENT MANAGEMENT PHILOSOPHY. 4 | Semiannual Report Performance Summary as of 12/31/07 -------------------------------------------------------------------------------- CLASS A (SYMBOL: N/A) -------------------------------------------------------------------------------- Seven-Day Effective Yield 1 4.44% -------------------------------------------------------------------------------- Seven-Day Annualized Yield 4.35% -------------------------------------------------------------------------------- Total Annual Operating Expenses 2 -------------------------------------------------------------------------------- Without Waiver 0.93% -------------------------------------------------------------------------------- With Waiver 0.60% -------------------------------------------------------------------------------- CLASS B (SYMBOL: FMBXX) -------------------------------------------------------------------------------- Seven-Day Effective Yield 1 3.77% -------------------------------------------------------------------------------- Seven-Day Annualized Yield 3.70% -------------------------------------------------------------------------------- Total Annual Operating Expenses 2 -------------------------------------------------------------------------------- Without Waiver 1.57% -------------------------------------------------------------------------------- With Waiver 1.24% -------------------------------------------------------------------------------- CLASS C (SYMBOL: FRIXX) -------------------------------------------------------------------------------- Seven-Day Effective Yield 1 3.79% -------------------------------------------------------------------------------- Seven-Day Annualized Yield 3.72% -------------------------------------------------------------------------------- Total Annual Operating Expenses 2 -------------------------------------------------------------------------------- Without Waiver 1.52% -------------------------------------------------------------------------------- With Waiver 1.19% -------------------------------------------------------------------------------- CLASS R (SYMBOL: FMRXX) -------------------------------------------------------------------------------- Seven-Day Effective Yield 1 3.91% -------------------------------------------------------------------------------- Seven-Day Annualized Yield 3.83% -------------------------------------------------------------------------------- Total Annual Operating Expenses 2 -------------------------------------------------------------------------------- Without Waiver 1.43% -------------------------------------------------------------------------------- With Waiver 1.10% -------------------------------------------------------------------------------- THE ADMINISTRATOR HAS CONTRACTUALLY AGREED TO LIMIT FUND EXPENSES SO THAT TOTAL ANNUAL OPERATING EXPENSES DO NOT EXCEED THE AMOUNT SHOWN WITH WAIVER FOR EACH SHARE CLASS UNTIL 10/31/08. IF THE ADMINISTRATOR HAD NOT WAIVED FEES, THE FUND'S ANNUALIZED AND EFFECTIVE YIELDS FOR THE PERIOD WOULD HAVE BEEN 4.24% AND 4.32% FOR CLASS A SHARES, 3.59% AND 3.66% FOR CLASS B SHARES, 3.61% AND 3.68% FOR CLASS C SHARES, AND 3.72% AND 3.79% FOR CLASS R SHARES. 1. The seven-day effective yield assumes compounding of daily dividends. 2. Figures are as stated in the Fund's prospectus current as of the date of this report. Annualized and effective yields are for the seven-day period ended 12/31/07. The Fund's average weighted maturity was 23 days. Yield reflects Fund expenses and fluctuations in interest rates on Portfolio investments. PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN WILL FLUCTUATE. CURRENT PERFORMANCE MAY DIFFER FROM FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236 FOR MOST RECENT MONTH-END PERFORMANCE. Semiannual Report | 5 Your Fund's Expenses As a Fund shareholder, you can incur two types of costs: o Transaction costs, including sales charges (loads) on Fund purchases and redemption fees; and o Ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The following table shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated. ACTUAL FUND EXPENSES The first line (Actual) for each share class listed in the table provides actual account values and expenses. The "Ending Account Value" is derived from the Fund's actual return, which includes the effect of Fund expenses. You can estimate the expenses you paid during the period by following these steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS ILLUSTRATION: 1. Divide your account value by $1,000. IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6. 2. Multiply the result by the number under the heading "Expenses Paid During Period." IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50. In this illustration, the estimated expenses paid this period are $64.50. HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS Information in the second line (Hypothetical) for each class in the table can help you compare ongoing costs of investing in the Fund with those of other mutual funds. This information may not be used to estimate the actual ending account balance or expenses you paid during the period. The hypothetical "Ending Account Value" is based on the actual expense ratio for each class and an assumed 5% annual rate of return before expenses, which does not represent the Fund's actual return. The figure under the heading "Expenses Paid During Period" shows the hypothetical expenses your account would have incurred under this scenario. You can compare this figure with the 5% hypothetical examples that appear in shareholder reports of other funds. 6 | Semiannual Report Your Fund's Expenses (CONTINUED) PLEASE NOTE THAT EXPENSES SHOWN IN THE TABLE ARE MEANT TO HIGHLIGHT ONGOING COSTS AND DO NOT REFLECT ANY TRANSACTION COSTS, SUCH AS SALES CHARGES OR REDEMPTION FEES. Therefore, the second line for each class is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transaction costs were included, your total costs would have been higher. Please refer to the Fund prospectus for additional information on operating expenses.
-------------------------------------------------------------------------------------------------------------------------- BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING CLASS A VALUE 7/1/07 VALUE 12/31/07 PERIOD* 7/1/07-12/31/07 -------------------------------------------------------------------------------------------------------------------------- Actual $1,000 $1,023.50 $3.05 -------------------------------------------------------------------------------------------------------------------------- Hypothetical (5% return before expenses) $1,000 $1,022.12 $3.05 -------------------------------------------------------------------------------------------------------------------------- CLASS B -------------------------------------------------------------------------------------------------------------------------- Actual $1,000 $1,020.10 $6.30 -------------------------------------------------------------------------------------------------------------------------- Hypothetical (5% return before expenses) $1,000 $1,018.90 $6.29 -------------------------------------------------------------------------------------------------------------------------- CLASS C -------------------------------------------------------------------------------------------------------------------------- Actual $1,000 $1,020.40 $6.04 -------------------------------------------------------------------------------------------------------------------------- Hypothetical (5% return before expenses) $1,000 $1,019.15 $6.04 -------------------------------------------------------------------------------------------------------------------------- CLASS R -------------------------------------------------------------------------------------------------------------------------- Actual $1,000 $1,020.90 $5.59 -------------------------------------------------------------------------------------------------------------------------- Hypothetical (5% return before expenses) $1,000 $1,019.61 $5.58 --------------------------------------------------------------------------------------------------------------------------
* Expenses are calculated using the most recent six-month expense ratio, net of expense waivers, annualized for each class (A: 0.60%; B: 1.24%; C: 1.19%; and R: 1.10%), which includes the expenses incurred by the Portfolio, multiplied by the average account value over the period, multiplied by 184/366 to reflect the one-half year period. Semiannual Report | 7 Franklin Templeton Money Fund Trust FINANCIAL HIGHLIGHTS FRANKLIN TEMPLETON MONEY FUND
------------------------------- SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 2007 JUNE 30, CLASS A (UNAUDITED) 2007 d ------------------------------- PER SHARE OPERATING PERFORMANCE (for a share outstanding throughout the period) Net asset value, beginning of period ........................ $ 1.00 $ 1.00 ------------------------------ Income from investment operations - net investment income ... 0.023 0.025 Less distributions from net investment income ............... (0.023) (0.025) ------------------------------ Net asset value, end of period .............................. $ 1.00 $ 1.00 ============================== Total return a .............................................. 2.35% 2.51% RATIOS TO AVERAGE NET ASSETS b Expenses before waiver and payments by affiliates c ......... 0.78% 0.93% Expenses net of waiver and payments by affiliates c ......... 0.60% 0.60% Net investment income ....................................... 4.60% 4.75% SUPPLEMENTAL DATA Net assets, end of period (000's) ........................... $ 978 $ 345
a Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. b Ratios are annualized for periods less than one year. c The expense ratio includes the Fund's share of the Portfolio's allocated expenses. d For the period December 15, 2006 (effective date) to June 30, 2007. 8 | The accompanying notes are an integral part of these financial statements. | Semiannual Report Franklin Templeton Money Fund Trust FINANCIAL HIGHLIGHTS (CONTINUED) FRANKLIN TEMPLETON MONEY FUND
-------------------------------------------------------------------------- SIX MONTHS ENDED DECEMBER 31, 2007 YEAR ENDED JUNE 30, CLASS B (UNAUDITED) 2007 2006 2005 2004 2003 -------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE (for a share outstanding throughout the period) Net asset value, beginning of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------------------------------------------------------------------------- Income from investment operations - net investment income ....................... 0.020 0.041 0.030 0.009 -- d 0.003 Less distributions from net investment income... (0.020) (0.041) (0.030) (0.009) -- e (0.003) -------------------------------------------------------------------------- Net asset value, end of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========================================================================== Total return a ................................. 2.01% 4.15% 3.03% 0.95% 0.04% 0.31% RATIOS TO AVERAGE NET ASSETS b Expenses before waiver and payments by affiliates c ............................. 1.42% 1.57% 1.51% 1.48% 1.48% 1.45% Expenses net of waiver and payments by affiliates c ............................. 1.24% 1.24% 1.24% 1.24% 1.05% 1.24% Net investment income .......................... 3.96% 4.11% 3.01% 0.88% 0.04% 0.29% SUPPLEMENTAL DATA Net assets, end of period (000's) .............. $53,396 $ 40,650 $ 48,118 $ 45,443 $ 65,715 $ 51,117
a Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. b Ratios are annualized for periods less than one year. c The expense ratio includes the Fund's share of the Portfolio's allocated expenses. d Net investment income was $0.0004. e Distributions from net investment income were $0.0004. Semiannual Report | The accompanying notes are an integral part of these financial statements. | 9 Franklin Templeton Money Fund Trust FINANCIAL HIGHLIGHTS (CONTINUED) FRANKLIN TEMPLETON MONEY FUND
-------------------------------------------------------------------------- SIX MONTHS ENDED DECEMBER 31, 2007 YEAR ENDED JUNE 30, CLASS C (UNAUDITED) 2007 2006 2005 2004 2003 -------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE (for a share outstanding throughout the period) Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------------------------------------------------------------------------- Income from investment operations - net investment income ........................ 0.020 0.041 0.030 0.010 0.001 0.004 Less distributions from net investment income ... (0.020) (0.041) (0.030) (0.010) (0.001) (0.004) -------------------------------------------------------------------------- Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========================================================================== Total return a .................................. 2.04% 4.16% 3.07% 1.01% 0.09% 0.36% RATIOS TO AVERAGE NET ASSETS b Expenses before waiver and payments by affiliates c .............................. 1.37% 1.56% 1.46% 1.43% 1.42% 1.40% Expenses net of waiver and payments by affiliates c .............................. 1.19% 1.23% 1.19% 1.19% 0.99% 1.19% Net investment income ........................... 4.01% 4.12% 3.06% 0.93% 0.10% 0.34% SUPPLEMENTAL DATA Net assets, end of period (000's) ............... $165,016 $ 74,820 $ 90,613 $ 49,123 $ 85,041 $ 86,890
a Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. b Ratios are annualized for periods less than one year. c The expense ratio includes the Fund's share of the Portfolio's allocated expenses. 10 | The accompanying notes are an integral part of these financial statements. | Semiannual Report Franklin Templeton Money Fund Trust FINANCIAL HIGHLIGHTS (CONTINUED) FRANKLIN TEMPLETON MONEY FUND
-------------------------------------------------------------------------- SIX MONTHS ENDED DECEMBER 31, 2007 YEAR ENDED JUNE 30, CLASS R (UNAUDITED) 2007 2006 2005 2004 2003 -------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE (for a share outstanding throughout the period) Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------------------------------------------------------------------------- Income from investment operations - net investment income ........................ 0.021 0.042 0.031 0.011 0.002 0.005 Less distributions from net investment income ... (0.021) (0.042) (0.031) (0.011) (0.002) (0.005) -------------------------------------------------------------------------- Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========================================================================== Total return a .................................. 2.09% 4.29% 3.17% 1.09% 0.18% 0.46% RATIOS TO AVERAGE NET ASSETS b Expenses before waiver and payments by affiliates c .............................. 1.28% 1.43% 1.37% 1.34% 1.33% 1.30% Expenses net of waiver and payments by affiliates c .............................. 1.10% 1.10% 1.11% 1.10% 0.90% 1.09% Net investment income ........................... 4.10% 4.25% 3.15% 1.02% 0.18% 0.44% SUPPLEMENTAL DATA Net assets, end of period (000's) ............... $ 3,105 $ 3,015 $ 2,480 $ 2,437 $ 2,356 $ 2,300
a Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. b Ratios are annualized for periods less than one year. c The expense ratio includes the Fund's share of the Portfolio's allocated expenses. Semiannual Report | The accompanying notes are an integral part of these financial statements. | 11 Franklin Templeton Money Fund Trust STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) -------------------------------------------------------------------------------- FRANKLIN TEMPLETON MONEY FUND SHARES VALUE -------------------------------------------------------------------------------- MUTUAL FUND (COST $221,989,467) 99.8% a The Money Market Portfolio, 4.80% ............... 221,989,467 $221,989,467 OTHER ASSETS, LESS LIABILITIES 0.2% ............. 505,322 ------------ NET ASSETS 100.0% ............................... $222,494,789 ============ a The rate shown is the annualized seven-day yield at period end. 12 | The accompanying notes are an integral part of these financial statements. | Semiannual Report Franklin Templeton Money Fund Trust FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES December 31, 2007 (unaudited) ------------ FRANKLIN TEMPLETON MONEY FUND ------------ Assets: Investments in Portfolio, at value and cost .................. $221,989,467 Receivables from capital shares sold ......................... 1,692,589 ------------ Total assets ........................................... 223,682,056 ------------ Liabilities: Payables: Capital shares redeemed ................................... 877,102 Affiliates ................................................ 232,920 Distributions to shareholders ............................. 28,152 Accrued expenses and other liabilities ....................... 49,093 ------------ Total liabilities ...................................... 1,187,267 ------------ Net assets, at value ................................ $222,494,789 ------------ Net assets consist of paid-in capital ........................... $222,494,789 ============ CLASS A: Net assets, at value ......................................... $ 977,973 ============ Shares outstanding ........................................... 977,973 ============ Net asset value per share a .................................. $ 1.00 ============ CLASS B: Net assets, at value ......................................... $ 53,396,356 ============ Shares outstanding ........................................... 53,396,356 ============ Net asset value per share a .................................. $ 1.00 ============ CLASS C: Net assets, at value ......................................... $165,015,899 ============ Shares outstanding ........................................... 165,015,899 ============ Net asset value per share a .................................. $ 1.00 ============ CLASS R: Net assets, at value ......................................... $ 3,104,561 ============ Shares outstanding ........................................... 3,104,561 ============ Net asset value per share a .................................. $ 1.00 ============ a Redemption price is equal to net asset value less contingent deferred sales charges, if applicable. Semiannual Report | The accompanying notes are an integral part of these financial statements. | 13 Franklin Templeton Money Fund Trust FINANCIAL STATEMENTS (CONTINUED) STATEMENT OF OPERATIONS for the six months ended December 31, 2007 (unaudited)
----------- FRANKLIN TEMPLETON MONEY FUND ----------- Investment income: Dividends from Portfolio ................................................ $4,746,433 ----------- Expenses: Administrative fees (Note 3a) ........................................... 372,361 Distribution fees: (Note 3b) Class B .............................................................. 166,581 Class C .............................................................. 387,517 Class R .............................................................. 9,137 Transfer agent fees (Note 3d) ........................................... 105,788 Reports to shareholders ................................................. 21,783 Registration and filing fees ............................................ 63,414 Professional fees ....................................................... 16,900 Trustees' fees and expenses ............................................. 1,200 Other ................................................................... 1,741 ----------- Total expenses .................................................... 1,146,422 Expenses waived/paid by affiliates (Note 3e) ...................... (163,086) ----------- Net expenses ................................................... 983,336 ----------- Net investment income ....................................... 3,763,097 ----------- Net increase (decrease) in net assets resulting from operations ............ $3,763,097 ===========
14 | The accompanying notes are an integral part of these financial statements. | Semiannual Report Franklin Templeton Money Fund Trust FINANCIAL STATEMENTS (CONTINUED) STATEMENTS OF CHANGES IN NET ASSETS
---------------------------------- FRANKLIN TEMPLETON MONEY FUND ---------------------------------- SIX MONTHS ENDED DECEMBER 31, 2007 YEAR ENDED (UNAUDITED) JUNE 30, 2007 ---------------------------------- Increase (decrease) in net assets: Net investment income from operations ........................ $ 3,763,097 $ 4,598,722 ---------------------------------- Distributions to shareholders from net investment income: Class A .................................................... (16,163) (1,488) Class B .................................................... (1,029,018) (1,713,342) Class C .................................................... (2,642,584) (2,782,046) Class R .................................................... (75,332) (101,846) ---------------------------------- Total distributions to shareholders .......................... (3,763,097) (4,598,722) ---------------------------------- Capital share transactions: (Note 2) Class A .................................................... 633,403 344,570 Class B .................................................... 12,746,076 (7,468,198) Class C .................................................... 90,195,947 (15,793,021) Class R .................................................... 89,088 535,377 ---------------------------------- Total capital share transactions ............................. 103,664,514 (22,381,272) ---------------------------------- Net increase (decrease) in net assets .................... 103,664,514 (22,381,272) Net assets (there is no undistributed net investment income at beginning or end of period): Beginning of period .......................................... 118,830,275 141,211,547 ================================== End of period ................................................ $ 222,494,789 $ 118,830,275 ==================================
Semiannual Report | The accompanying notes are an integral part of these financial statements. | 15 Franklin Templeton Money Fund Trust NOTES TO FINANCIAL STATEMENTS (UNAUDITED) FRANKLIN TEMPLETON MONEY FUND 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Franklin Templeton Money Fund Trust (Trust) is registered under the Investment Company Act of 1940, as amended, (1940 Act) as a diversified, open-end investment company, consisting of one Fund, the Franklin Templeton Money Fund (Fund). The Fund offers four classes of shares: Class A, Class B, Class C, and Class R. Each class of shares differs by contingent deferred sales charges, distribution fees, voting rights on matters affecting a single class and its exchange privilege. The Fund invests substantially all of its assets in The Money Market Portfolio (Portfolio), which is registered under the 1940 Act as a diversified, open-end investment company. The accounting policies of the Portfolio, including the Portfolio's security valuation policies, will directly affect the recorded value of the Fund's investment in the Portfolio. The financial statements of the Portfolio, including the Statement of Investments, are included elsewhere in this report and should be read in conjunction with the Fund's financial statements. The following summarizes the Fund's significant accounting policies. A. SECURITY VALUATION The Fund holds Portfolio shares that are valued at its proportionate interest in the closing net asset value of the Portfolio. As of December 31, 2007, the Fund owns 3.74% of the Portfolio. B. INCOME TAXES No provision has been made for U.S. income taxes because it is the Fund's policy to qualify as a regulated investment company under the Internal Revenue Code and to distribute to shareholders substantially all of its taxable income and net realized gains. C. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Income and estimated expenses are accrued daily. Dividends from net investment income received from the Portfolio are normally declared daily. Distributions to shareholders are determined according to income tax regulations (tax basis). Distributable earnings determined on a tax basis may differ from earnings recorded in accordance with accounting principles generally accepted in the United States of America. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods. Net investment income, other than class specific expenses, is allocated daily to each class of shares based upon the relative value of the settled shares of each class. Realized and unrealized 16 | Semiannual Report Franklin Templeton Money Fund Trust NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) FRANKLIN TEMPLETON MONEY FUND 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS (CONTINUED) gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets of each class. Differences in per share distributions, by class, are generally due to differences in class specific expenses. D. ACCOUNTING ESTIMATES The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates. E. GUARANTEES AND INDEMNIFICATIONS Under the Trust's organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote. 2. SHARES OF BENEFICIAL INTEREST At December 31, 2007, there were an unlimited number of shares authorized (without par value). Transactions in the Fund's shares at $1.00 per share were as follows:
------------------------------------ SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 2007 JUNE 30, 2007 a ------------------------------------ CLASS A SHARES: Shares sold ........................................ $ 783,251 $ 345,267 Shares issued in reinvestment of distributions ..... 16,106 1,425 Shares redeemed .................................... (165,954) (2,122) ------------------------------------ Net increase (decrease) ............................ $ 633,403 $ 344,570 ==================================== CLASS B SHARES: Shares sold ........................................ $ 37,103,779 $ 26,148,246 Shares issued in reinvestment of distributions ..... 1,035,369 1,705,320 Shares redeemed .................................... (25,393,072) (35,321,764) ------------------------------------ Net increase (decrease) ............................ $ 12,746,076 $ (7,468,198) ====================================
Semiannual Report | 17 Franklin Templeton Money Fund Trust NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) FRANKLIN TEMPLETON MONEY FUND 2. SHARES OF BENEFICIAL INTEREST (CONTINUED)
------------------------------------ SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 2007 JUNE 30, 2007 ------------------------------------ CLASS C SHARES: Shares sold ........................................ $ 201,711,832 $ 122,541,479 Shares issued in reinvestment of distributions ..... 2,655,209 2,765,899 Shares redeemed .................................... (114,171,094) (141,100,399) ------------------------------------ Net increase (decrease) ............................ $ 90,195,947 $ (15,793,021) ==================================== CLASS R SHARES: Shares sold ........................................ $ 2,950,218 $ 4,190,333 Shares issued in reinvestment of distributions ..... 75,225 101,294 Shares redeemed .................................... (2,936,355) (3,756,250) ------------------------------------ Net increase (decrease) ............................ $ 89,088 $ 535,377 ====================================
a For Class A, for the period December 15, 2006 (effective date) to June 30, 2007. 3. TRANSACTIONS WITH AFFILIATES Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton Investments. Certain officers and trustees of the Trust are also officers and/or trustees of the Portfolio and of the following subsidiaries:
------------------------------------------------------------------------------------------- SUBSIDIARY AFFILIATION ------------------------------------------------------------------------------------------- Franklin Advisers, Inc. (Advisers) Investment manager Franklin Templeton Distributors, Inc. (Distributors) Principal underwriter Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent
A. ADMINISTRATIVE FEES The Fund pays an administrative fee to Advisers based on the average daily net assets as follows: -------------------------------------------------------------------------------- ANNUALIZED FEE RATE NET ASSETS -------------------------------------------------------------------------------- 0.455% Up to and including $100 million 0.330% Over $100 million, up to and including $250 million 0.280% In excess of $250 million B. DISTRIBUTION FEES The Fund's Board of Trustees has adopted distribution plans for each share class, with the exception of Class A shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Fund's compensation distribution plans, the Fund pays Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund's shares up to a certain percentage per year of its average daily net assets of each class as follows: Class B ............................................................... 0.65% Class C ............................................................... 0.65% Class R ............................................................... 0.50% 18 | Semiannual Report Franklin Templeton Money Fund Trust NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) FRANKLIN TEMPLETON MONEY FUND 3. TRANSACTIONS WITH AFFILIATES (CONTINUED) C. SALES CHARGES/UNDERWRITING AGREEMENTS Distributors has advised the Fund of the following commission transactions related to the sales and redemptions of the Fund's shares for the period: Contingent deferred sales charges retained ......................... $122,077 D. TRANSFER AGENT FEES For the period ended December 31, 2007, the Fund paid transfer agent fees of $105,788, of which $56,370 was retained by Investor Services. E. WAIVER AND EXPENSE REIMBURSEMENTS Advisers has agreed in advance to waive all or a portion of its fees and to assume payment of other expenses through October 31, 2008. Total expenses waived are not subject to reimbursement by the Fund subsequent to the Fund's fiscal year end. After October 31, 2008, Advisers may discontinue this waiver at any time upon notice to the Fund's Board of Trustees. 4. INCOME TAXES At December 31, 2007, the cost of investments for book and income tax purposes was the same. 5. REGULATORY AND LITIGATION MATTERS As part of various investigations by a number of federal, state, and foreign regulators and governmental entities, including the Securities and Exchange Commission ("SEC"), relating to certain practices in the mutual fund industry, including late trading, market timing and marketing support payments to securities dealers who sell fund shares ("marketing support"), Franklin Resources, Inc. and certain of its subsidiaries (collectively, the "Company"), entered into settlements with certain of those regulators and governmental entities. Specifically, the Company entered into settlements with the SEC, among others, concerning market timing and marketing support. On June 6, 2007, the SEC posted for public comment the proposed plan of distribution for the market timing settlement. Once the SEC approves the final plan of distribution, disbursements of settlement monies will be made promptly to individuals who were shareholders of the designated funds during the relevant period, in accordance with the terms and conditions of the settlement and plan. Semiannual Report | 19 Franklin Templeton Money Fund Trust NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) FRANKLIN TEMPLETON MONEY FUND 5. REGULATORY AND LITIGATION MATTERS (CONTINUED) In addition, the Company, as well as most of the mutual funds within Franklin Templeton Investments and certain current or former officers, Company directors, fund directors, and employees, have been named in private lawsuits (styled as shareholder class actions, or as derivative actions on behalf of either the named funds or Franklin Resources, Inc.). The lawsuits relate to the industry practices referenced above. The Company and fund management believe that the claims made in each of the private lawsuits referenced above are without merit and intend to defend against them vigorously. The Company cannot predict with certainty the eventual outcome of these lawsuits, nor whether they will have a material negative impact on the Company. If it is determined that the Company bears responsibility for any unlawful or inappropriate conduct that caused losses to the Trust, it is committed to making the Trust or its shareholders whole, as appropriate. 6. NEW ACCOUNTING PRONOUNCEMENTS The Fund adopted Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109" (FIN 48), on December 31, 2007. FIN 48 clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return. FIN 48 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. The Fund has reviewed the tax positions for each of the three open tax years as of June 30, 2007 and has determined that the implementation of FIN 48 did not have a material impact on the Fund's financial statements. In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement" (SFAS 157), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Fund believes the adoption of SFAS 157 will have no material impact on its financial statements. 20 | Semiannual Report The Money Market Portfolios FINANCIAL HIGHLIGHTS THE MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------------------------- SIX MONTHS ENDED DECEMBER 31, 2007 YEAR ENDED JUNE 30, (UNAUDITED) 2007 2006 2005 2004 2003 ---------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE (for a share outstanding throughout the period) Net asset value, beginning of period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------------------------------------------------------------------------------------------- Income from investment operations: Net investment income ......... 0.025 0.052 0.041 0.020 0.009 0.014 Net realized gains (losses) ... -- -- c -- -- -- -- ---------------------------------------------------------------------------------------------- Less distributions from net investment income ............. (0.025) (0.052) (0.041) (0.020) (0.009) (0.014) ---------------------------------------------------------------------------------------------- Net asset value, end of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============================================================================================== Total return a ................... 2.56% 5.28% 4.15% 2.06% 0.94% 1.41% RATIOS TO AVERAGE NET ASSETS b Expenses before waiver and payments by affiliates and expense reduction ............. 0.16% 0.15% 0.16% 0.16% 0.16% 0.15% Expenses net of waiver and payments by affiliates and expense reduction ............. 0.16% d 0.15% d 0.16% d 0.16% d 0.15% d 0.15% Net investment income ............ 5.04% 5.17% 4.09% 2.04% 0.93% 1.39% SUPPLEMENTAL DATA Net assets, end of period (000's) ................ $ 5,943,654 $ 6,580,101 $ 4,993,739 $ 5,676,479 $ 5,505,394 $ 5,331,200
a Total return is not annualized for periods less than one year. b Ratios are annualized for periods less than one year. c Amount rounds to less than $0.001 per share. d Benefit of expense reduction rounds to less than 0.01%. Semiannual Report | The accompanying notes are an integral part of these financial statements. | 21 The Money Market Portfolios STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------- THE MONEY MARKET PORTFOLIO PRINCIPAL AMOUNT a VALUE ----------------------------------------------------------------------------------------------------------------- INVESTMENTS 100.0% BANK NOTE (COST $250,000,000) 4.2% Wells Fargo Bank NA, 4.40%, 1/07/08 ................................... $ 250,000,000 $ 250,000,000 ------------------ CERTIFICATES OF DEPOSIT 67.7% Abbey National Treasury Service, Stamford Branch, 4.86%, 1/23/08 ...... 225,000,000 225,000,679 Bank of Ireland, Connecticut Branch, 4.94%, 1/16/08 ................... 50,000,000 50,000,000 Bank of Montreal, Chicago Branch, 5.18%, 1/04/08 ...................... 225,000,000 225,000,000 Bank of Nova Scotia, Portland Branch, 4.71%, 1/08/08 .................. 225,000,000 225,000,000 Bank of Scotland, New York Branch, 4.93%, 1/28/08 ..................... 99,500,000 99,505,846 Banque Nationale De Paris, New York Branch, 5.17%, 1/03/08 ............ 250,000,000 250,000,138 Barclays Bank PLC, New York Branch, 4.96% - 5.35%, 1/23/08 - 2/20/08... 100,000,000 100,000,000 Barclays Bank PLC, New York Branch, 5.02%, 2/22/08 .................... 150,000,000 150,000,000 Calyon NY, New York Branch, 5.06%, 3/10/08 ............................ 275,000,000 275,000,000 Dexia Bank, New York Branch, 5.10%, 1/14/08 ........................... 225,000,000 225,000,401 Dexia Credit Local NY, New York Branch, 4.95%, 2/15/08 ................ 50,000,000 50,000,617 Landesbank Hessen Thueringen Girozentrale, 5.20%, 1/10/08 ............. 225,000,000 225,000,554 Lloyds Bank PLC, New York Branch, 4.92%, 1/18/08 ...................... 275,000,000 275,001,293 Royal Bank of Canada, New York Branch, 5.06%, 1/15/08 ................. 225,000,000 225,000,864 Royal Bank of Scotland NY, New York Branch, 4.80%, 2/04/08 ............ 225,000,000 225,000,000 Royal Bank of Scotland NY, New York Branch, 4.96%, 2/20/08 ............ 50,000,000 50,000,686 Societe Generale, New York Branch, 4.95%, 3/06/08 ..................... 275,000,000 275,000,000 Svenska Handelsbanken, New York Branch, 4.87%, 1/22/08 ................ 225,000,000 225,001,301 Toronto Dominion Bank, New York Branch, 4.77%, 1/09/08 ................ 225,000,000 225,000,000 UBS AG, Stamford Branch, 5.18%, 1/07/08 ............................... 225,000,000 225,000,185 Westpac Banking Corp., New York Branch, 5.14%, 1/11/08 ................ 200,000,000 200,000,821 ------------------ TOTAL CERTIFICATES OF DEPOSIT (COST $4,024,513,385) ................... 4,024,513,385 ------------------ b COMMERCIAL PAPER 25.9% Bank of Scotland UK Branch, 1/25/08 ................................... 125,000,000 124,602,500 Commonwealth Bank of Australia, 1/10/08 - 2/21/08 ..................... 85,000,000 84,693,167 Commonwealth Bank of Australia, 1/16/08 ............................... 101,600,000 101,396,800 Export Development Corp., 1/22/08 ..................................... 199,500,000 198,898,341 Goldman Sachs Group Inc., 1/07/08 ..................................... 50,000,000 49,956,250 Internationale Nederlanden U.S., 1/24/08 .............................. 225,000,000 224,311,437 Merrill Lynch & Co. Inc., 1/02/08 ..................................... 275,000,000 274,959,132 PepsiCo Inc., 1/10/08 - 1/17/08 ....................................... 30,150,000 30,110,053 Procter & Gamble Co., 1/17/08 ......................................... 75,000,000 74,860,000 Toyota Motor Credit Corp., 2/19/08 .................................... 225,000,000 223,637,188 United Parcel Service Inc., 1/17/08 ................................... 150,000,000 149,720,000 ------------------ TOTAL COMMERCIAL PAPER (COST $1,537,144,868) .......................... 1,537,144,868 ------------------ U.S. GOVERNMENT AND AGENCY SECURITY (COST $18,533,327) 0.3% b FHLB, 1/02/08 ......................................................... 18,535,000 18,533,327 ------------------ TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENTS (COST $5,830,191,580)... 5,830,191,580 ------------------
22 | Semiannual Report The Money Market Portfolios STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------- THE MONEY MARKET PORTFOLIO PRINCIPAL AMOUNT a VALUE ---------------------------------------------------------------------------------------------------------------- c REPURCHASE AGREEMENT (COST $80,445,000) 1.3% Deutsche Morgan Grenfell, 1.50%, 1/02/08 (Maturity Value $80,451,704) Collateralized by U.S. Treasury Note, 3.50%, 1/15/11 ................ $ 80,445,000 $ 80,445,000 ---------------- TOTAL INVESTMENTS (COST $5,910,636,580) 99.4% ......................... 5,910,636,580 OTHER ASSETS, LESS LIABILITIES 0.6% ................................... 33,017,900 ---------------- NET ASSETS 100.0% ..................................................... $ 5,943,654,480 ================
SELECTED PORTFOLIO ABBREVIATION FHLB - Federal Home Loan Bank a The principal amount is stated in U.S. dollars unless otherwise indicated. b The security is traded on a discount basis with no stated coupon rate. c See Note 1(b) regarding repurchase agreements. Semiannual Report | The accompanying notes are an integral part of these financial statements. | 23 The Money Market Portfolios FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES December 31, 2007 (unaudited) --------------- THE MONEY MARKET PORTFOLIO --------------- Assets: Investments in securities, at amortized cost .............. $5,830,191,580 Repurchase agreements, at value and cost .................. 80,445,000 --------------- Total investments ................................... $5,910,636,580 Cash ...................................................... 5,684 Interest receivables ...................................... 33,864,419 --------------- Total assets ........................................ 5,944,506,683 --------------- Liabilities: Payables: Affiliates ............................................. 821,917 Distributions to shareholders .......................... 3,970 Accrued expenses and other liabilities .................... 26,316 --------------- Total liabilities ................................... 852,203 --------------- Net assets, at value ............................. $5,943,654,480 --------------- Net assets consist of: Paid-in capital ........................................... $5,943,673,949 Accumulated net realized gain (loss) ...................... (19,469) --------------- Net assets, at value ............................. $5,943,654,480 =============== Shares outstanding ........................................... 5,943,673,949 =============== Net asset value per share .................................... $ 1.00 =============== 24 | The accompanying notes are an integral part of these financial statements. | Semiannual Report The Money Market Portfolios FINANCIAL STATEMENTS (CONTINUED) STATEMENT OF OPERATIONS for the six months ended December 31, 2007 (unaudited)
------------- THE MONEY MARKET PORTFOLIO ------------- Investment income: Interest ................................................................. $175,221,805 ------------- Expenses: Management fees (Note 3a) ................................................ 5,062,338 Custodian fees (Note 4) .................................................. 59,656 Reports to shareholders .................................................. 4,925 Professional fees ........................................................ 35,762 Other .................................................................... 65,438 ------------- Total expenses ..................................................... 5,228,119 Expense reductions (Note 4) ........................................ (163) ------------- Net expenses .................................................... 5,227,956 ------------- Net investment income ........................................ 169,993,849 ------------- Net increase (decrease) in net assets resulting from operations ............. $169,993,849 =============
Semiannual Report | The accompanying notes are an integral part of these financial statements. | 25 The Money Market Portfolios FINANCIAL STATEMENTS (CONTINUED) STATEMENTS OF CHANGES IN NET ASSETS
------------------------------------ THE MONEY MARKET PORTFOLIO ------------------------------------ SIX MONTHS ENDED DECEMBER 31, 2007 YEAR ENDED (UNAUDITED) JUNE 30, 2007 ------------------------------------ Increase (decrease) in net assets: Operations: Net investment income ................................................................. $ 169,993,849 $ 318,082,571 Net realized gain (loss) from investments ............................................. -- (19,469) ------------------------------------ Net increase (decrease) in net assets resulting from operations ................. 169,993,849 318,063,102 ------------------------------------ Distributions to shareholders from net investment income ................................. (169,993,849) (318,082,571) Capital share transactions (Note 2) ...................................................... (636,446,832) 1,586,381,761 ------------------------------------ Net increase (decrease) in net assets ........................................... (636,446,832) 1,586,362,292 Net assets (there is no undistributed net investment income at beginning or end of period): Beginning of period ...................................................................... 6,580,101,312 4,993,739,020 ==================================== End of period ............................................................................ $ 5,943,654,480 $ 6,580,101,312 ====================================
26 | The accompanying notes are an integral part of these financial statements. | Semiannual Report The Money Market Portfolios NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES The Money Market Portfolios (Trust) is registered under the Investment Company Act of 1940, as amended, (1940 Act) as a diversified, open-end investment company, consisting of one portfolio, The Money Market Portfolio (Portfolio). The shares of the Portfolio are issued in private placements and are exempt from registration under the Securities Act of 1933. The following summarizes the Portfolios' significant accounting policies. A. SECURITY VALUATION Securities are valued at amortized cost which approximates market value. This method involves valuing an instrument at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. All security valuation procedures are approved by the Trust's Board of Trustees. B. REPURCHASE AGREEMENTS The Portfolio may enter into repurchase agreements, which are accounted for as a loan by the Portfolio to the seller, collateralized by securities which are delivered to the Portfolio's custodian. The market value, including accrued interest, of the initial collateralization is required to be at least 102% of the dollar amount invested by the Portfolio, with the value of the underlying securities marked to market daily to maintain coverage of at least 100%. All repurchase agreements held by the Portfolio at period end had been entered into on December 31, 2007. Repurchase agreements are valued at cost. C. INCOME TAXES No provision has been made for U.S. income taxes because it is the Portfolio's policy to qualify as a regulated investment company under the Internal Revenue Code and to distribute to shareholders substantially all of its taxable income and net realized gains. D. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividends from net investment income are normally declared daily and distributed monthly. Distributions to shareholders are determined according to income tax regulations (tax basis). Distributable earnings determined on a tax basis may differ from earnings recorded in accordance with accounting principles generally accepted in the United States of America. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods. Semiannual Report | 27 The Money Market Portfolios NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. ACCOUNTING ESTIMATES The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates. F. GUARANTEES AND INDEMNIFICATIONS Under the Trust's organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote. 2. SHARES OF BENEFICIAL INTEREST At December 31, 2007, there were an unlimited number of shares authorized (without par value). Transactions in the Portfolio's shares at $1.00 per share were as follows: ---------------------------------------- SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 2007 JUNE 30, 2007 ---------------------------------------- Shares sold ......................... $ 4,179,828,442 $ 9,565,818,487 Shares issued on merger (Note 6) .... -- 84,125,474 Shares issued in reinvestment of distributions .................... 169,997,366 318,075,338 Shares redeemed ..................... (4,986,272,640) (8,381,637,538) ---------------------------------------- Net increase (decrease) ............. $ (636,446,832) $ 1,586,381,761 ======================================== 3. TRANSACTIONS WITH AFFILIATES Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton Investments. Certain officers and trustees of the Trust are also officers and/or directors of the Franklin Money Fund, the Institutional Fiduciary Trust, and the Franklin Templeton Money Fund Trust, and of the following subsidiaries:
----------------------------------------------------------------------------------- SUBSIDIARY AFFILIATION ----------------------------------------------------------------------------------- Franklin Advisers, Inc. (Advisers) Investment manager Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent
28 | Semiannual Report The Money Market Portfolios NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 3. TRANSACTIONS WITH AFFILIATES (CONTINUED) A. MANAGEMENT FEES The Portfolio pays an investment management fee to Advisers of 0.15% per year of the average daily net assets of the Portfolio. B. TRANSFER AGENT FEES Investor Services, under terms of an agreement, performs shareholder servicing for the Portfolio and is not paid by the Portfolio for the services. C. OTHER AFFILIATED TRANSACTIONS At December 31, 2007, the shares of the Portfolio were owned by the following funds: ------------------------------------ PERCENTAGE OF SHARES OUTSTANDING SHARES ------------------------------------ Institutional Fiduciary Trust - Money Market Portfolio ........ 3,271,421,541 55.04% Franklin Money Fund ..................... 2,305,549,217 38.79% Franklin Templeton Money Fund Trust - Franklin Templeton Money Fund ......... 221,989,467 3.74% Institutional Fiduciary Trust - Franklin Cash Reserves Fund .................... 144,713,724 2.43% 4. EXPENSE OFFSET ARRANGEMENT The Portfolio has entered into an arrangement with their custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Portfolio's custodian expenses. During the period ended December 31, 2007, the custodian fees were reduced as noted in the Statement of Operations. 5. INCOME TAXES For tax purposes, realized capital losses occurring subsequent to October 31, may be deferred and treated as occurring on the first day of the following fiscal year. At June 30, 2007, the Portfolio deferred realized capital losses of $19,469. At December 31, 2007, the cost of investments for book and income tax purposes was the same. 6. MERGER On August 31, 2006, the Franklin Money Fund acquired all of the assets, subject to liabilities, of the Franklin Federal Money Fund pursuant to an agreement of merger. The merger was accomplished by a taxable exchange and accounted for as a purchase, and resulted in the Franklin Money Fund owning shares of the U.S. Government Securities Money Market Portfolio. The Semiannual Report | 29 The Money Market Portfolios NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 6. MERGER (CONTINUED) Franklin Money Fund then used the share of the U.S. Government Securities Money Market Portfolio to purchase in-kind additional shares of the Portfolio. The U.S. Government Securities Money Market Portfolio then liquidated and transferred its portfolio securities to the Portfolio. The selected financial information and shares outstanding immediately before and after the acquisition were as follows: -------------------------------------------------------------------------------- FUND NAME SHARES AT $1.00 PER SHARE -------------------------------------------------------------------------------- The U.S. Government Money Market Portfolio......... 84,125,474 The Money Market Portfolio ........................ 5,604,232,120 The Money Market Portfolio - post merger........... 5,688,357,594 7. REGULATORY AND LITIGATION MATTERS As part of various investigations by a number of federal, state, and foreign regulators and governmental entities, including the Securities and Exchange Commission ("SEC"), relating to certain practices in the mutual fund industry, including late trading, market timing and marketing support payments to securities dealers who sell fund shares ("marketing support"), Franklin Resources, Inc. and certain of its subsidiaries (collectively, the "Company"), entered into settlements with certain of those regulators and governmental entities. Specifically, the Company entered into settlements with the SEC, among others, concerning market timing and marketing support. On June 6, 2007, the SEC posted for public comment the proposed plan of distribution for the market timing settlement. Once the SEC approves the final plan of distribution, disbursements of settlement monies will be made promptly to individuals who were shareholders of the designated funds during the relevant period, in accordance with the terms and conditions of the settlement and plan. In addition, the Company, as well as most of the mutual funds within Franklin Templeton Investments and certain current or former officers, Company directors, fund directors, and employees, have been named in private lawsuits (styled as shareholder class actions, or as derivative actions on behalf of either the named funds or Franklin Resources, Inc.). The lawsuits relate to the industry practices referenced above. The Company and fund management believe that the claims made in each of the private lawsuits referenced above are without merit and intend to defend against them vigorously. The Company cannot predict with certainty the eventual outcome of these lawsuits, nor whether they will have a material negative impact on the Company. If it is determined that the Company bears responsibility for any unlawful or inappropriate conduct that caused losses to the Trust, it is committed to making the Trust or its shareholders whole, as appropriate. 30 | Semiannual Report The Money Market Portfolios NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 8. NEW ACCOUNTING PRONOUNCEMENTS The Portfolio adopted Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109" ("FIN 48"), on December 31, 2007. FIN 48 clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return. FIN 48 provides guidance on the measurement, recognition, classification and disclosure of tax positions, along with accounting for the related interest and penalties. The Trust reviewed the tax positions for each of the three open tax years as of June 30, 2007 and have determined that the adoption of FIN 48 did not have a material impact on the Portfolio's financial statements. In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement" ("SFAS 157"), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Trust believes the adoption of SFAS 157 will have no material impact on its financial statements. Semiannual Report | 31 Franklin Templeton Money Fund Trust SHAREHOLDER INFORMATION PROXY VOTING POLICIES AND PROCEDURES The Trust has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust's complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at 1-954/527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 500 East Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33394, Attention: Proxy Group. Copies of the Trust's proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission's website at sec.gov and reflect the most recent 12-month period ended June 30. QUARTERLY STATEMENT OF INVESTMENTS The Trust files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year on Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's website at sec.gov. The filed form may also be viewed and copied at the Commission's Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling 1-800/SEC-0330. 32 | Semiannual Report Literature Request LITERATURE REQUEST. TO RECEIVE A BROCHURE AND PROSPECTUS, PLEASE CALL US AT 1-800/DIAL BEN(R) (1-800/342-5236) OR VISIT FRANKLINTEMPLETON.COM. INVESTORS SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT GOALS, RISKS, CHARGES AND EXPENSES BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION. PLEASE CAREFULLY READ THE PROSPECTUS BEFORE INVESTING. TO ENSURE THE HIGHEST QUALITY OF SERVICE, WE MAY MONITOR, RECORD AND ACCESS TELEPHONE CALLS TO OR FROM OUR SERVICE DEPARTMENTS. THESE CALLS CAN BE IDENTIFIED BY THE PRESENCE OF A REGULAR BEEPING TONE. FRANKLIN TEMPLETON FUNDS INTERNATIONAL Mutual European Fund Templeton BRIC Fund Templeton China World Fund Templeton Developing Markets Trust Templeton Emerging Markets Small Cap Fund Templeton Foreign Fund Templeton Foreign Smaller Companies Fund 1 GLOBAL Mutual Discovery Fund Templeton Global Long-Short Fund Templeton Global Opportunities Trust Templeton Global Smaller Companies Fund 1 Templeton Growth Fund Templeton World Fund GROWTH Franklin Capital Growth Fund Franklin Flex Cap Growth Fund Franklin Growth Opportunities Fund 2 Franklin Small Cap Growth Fund II3 Franklin Small-Mid Cap Growth Fund VALUE Franklin All Cap Value Fund Franklin Balance Sheet Investment Fund 1 Franklin Equity Income Fund Franklin Large Cap Value Fund Franklin MicroCap Value Fund 1 Franklin MidCap Value Fund Franklin Small Cap Value Fund Mutual Beacon Fund Mutual Qualified Fund Mutual Recovery Fund 4 Mutual Shares Fund BLEND Franklin Balanced Fund Franklin Convertible Securities Fund Franklin Focused Core Equity Fund Franklin Growth Fund Franklin Rising Dividends Fund SECTOR Franklin Biotechnology Discovery Fund Franklin DynaTech Fund Franklin Global Communications Fund Franklin Global Health Care Fund Franklin Global Real Estate Fund Franklin Gold and Precious Metals Fund Franklin Natural Resources Fund Franklin Real Estate Securities Fund Franklin Technology Fund Franklin Utilities Fund Mutual Financial Services Fund ASSET ALLOCATION Franklin Templeton Corefolio(R) Allocation Fund Franklin Templeton Founding Funds Allocation Fund Franklin Templeton Perspectives Allocation Fund Franklin Templeton Conservative Target Fund Franklin Templeton Growth Target Fund Franklin Templeton Moderate Target Fund Franklin Templeton 2015 Retirement Target Fund Franklin Templeton 2025 Retirement Target Fund Franklin Templeton 2035 Retirement Target Fund Franklin Templeton 2045 Retirement Target Fund INCOME Franklin Adjustable U.S. Government Securities Fund 5 Franklin Floating Rate Daily Access Fund Franklin High Income Fund Franklin Income Fund Franklin Limited Maturity U.S. Government Securities Fund 5 Franklin Low Duration Total Return Fund Franklin Real Return Fund Franklin Strategic Income Fund Franklin Strategic Mortgage Portfolio Franklin Templeton Hard Currency Fund Franklin Total Return Fund Franklin U.S. Government Securities Fund 5 Templeton Global Bond Fund Templeton Income Fund Templeton International Bond Fund TAX-FREE INCOME 6 NATIONAL FUNDS Double Tax-Free Income Fund Federal Tax-Free Income Fund High Yield Tax-Free Income Fund Insured Tax-Free Income Fund 7 LIMITED-TERM FUNDS California Limited-Term Tax-Free Income Fund Federal Limited-Term Tax-Free Income Fund New York Limited-Term Tax-Free Income Fund INTERMEDIATE-TERM FUNDS California Intermediate-Term Tax-Free Income Fund Federal Intermediate-Term Tax-Free Income Fund New York Intermediate-Term Tax-Free Income Fund STATE-SPECIFIC Alabama Arizona California 8 Colorado Connecticut Florida Georgia Kentucky Louisiana Maryland Massachusetts 7 Michigan 7 Minnesota 7 Missouri New Jersey New York 8 North Carolina Ohio 7 Oregon Pennsylvania Tennessee Virginia INSURANCE FUNDS Franklin Templeton Variable Insurance Products Trust 9 1. The fund is closed to new investors. Existing shareholders and select retirement plans can continue adding to their accounts. 2. Effective 11/1/07, Franklin Aggressive Growth Fund changed its name to Franklin Growth Opportunities Fund. The fund's investment goal and strategy remained the same. 3. The fund is closed to new investors. Existing shareholders can continue adding to their accounts. 4. The fund is a continuously offered, closed-end fund. Shares may be purchased daily; there is no daily redemption. However, each quarter, pending board approval, the fund will authorize the repurchase of 5%-25% of the outstanding number of shares. Investors may tender all or a portion of their shares during the tender period. 5. An investment in the fund is neither insured nor guaranteed by the U.S. government or by any other entity or institution. 6. For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains are generally taxable. 7. The fund invests primarily in insured municipal securities. 8. These funds are available in two or more variations, including long-term portfolios, portfolios of insured securities, a high-yield portfolio (CA) and limited-term, intermediate-term and money market portfolios (CA and NY). 9. The funds of the Franklin Templeton Variable Insurance Products Trust are generally available only through insurance company variable contracts. 12/07 Not part of the semiannual report [LOGO](R) FRANKLIN TEMPLETON One Franklin Parkway INVESTMENTS San Mateo, CA 94403-1906 o WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL? Eligible shareholders can sign up for eDelivery at franklintempleton.com. See inside for details. SEMIANNUAL REPORT AND SHAREHOLDER LETTER FRANKLIN TEMPLETON MONEY FUND INVESTMENT MANAGER Franklin Advisers, Inc. DISTRIBUTOR Franklin Templeton Distributors, Inc. 1-800/DIAL BEN(R) franklintempleton.com SHAREHOLDER SERVICES 1-800/632-2301 Authorized for distribution only when accompanied or preceded by a prospectus. Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. The prospectus contains this and other information; please read it carefully before investing. To ensure the highest quality of service, telephone calls to or from our service departments may be monitored, recorded and accessed. These calls can be identified by the presence of a regular beeping tone. 511 S2007 02/08 ITEM 2. CODE OF ETHICS. (a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. (c) N/A (d) N/A (f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a)(1) The Registrant has an audit committee financial expert serving on its audit committee. (2) The audit committee financial expert is John B. Wilson, and he is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. N/A ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. N/A ITEM 6. SCHEDULE OF INVESTMENTS. N/A ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. N/A ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. N/A ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. N/A ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein. ITEM 11. CONTROLS AND PROCEDURES. (a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective. (b) Changes in Internal Controls. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Shareholder Report on Form N-CSR. ITEM 12. EXHIBITS. (a)(1) Code of Ethics (a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Galen G. Vetter, Chief Executive Officer - Finance and Administration, and Laura F. Fergerson, Chief Financial Officer and Chief Accounting Officer (b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Galen G. Vetter, Chief Executive Officer - Finance and Administration, and Laura F. Fergerson, Chief Financial Officer and Chief Accounting Officer SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FRANKLIN TEMPLETON MONEY FUND TRUST By /S/GALEN G. VETTER ------------------ Galen G. Vetter Chief Executive Officer - Finance and Administration Date February 27, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /S/GALEN G. VETTER ------------------ Galen G. Vetter Chief Executive Officer - Finance and Administration Date February 27, 2008 By /S/LAURA F. FERGERSON --------------------- Laura F. Fergerson Chief Financial Officer and Chief Accounting Officer Date February 27, 2008