FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05459
Templeton Global Income Fund
(Exact name of registrant as specified in charter)
500 East Broward Blvd., Suite 2100, Fort Lauderdale, FL 33394-3091
(Address of principal executive offices) (Zip code)
Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 954/527-7500
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Date of fiscal year end: 8/31
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Date of reporting period: 05/31/07
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Item 1. Schedule of Investments.
Templeton Global Income Fund
QUARTERLY STATEMENT OF INVESTMENTS
MAY 31, 2007
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CONTENTS
Statement of Investments ................................................. 3
Notes to Statement of Investments ........................................ 8
[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS
Franklin o TEMPLETON o Mutual Series
Quarterly Statement of Investments | 1
This page intentionally left blank.
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
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PRINCIPAL AMOUNT a VALUE
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BONDS 85.2%
ARGENTINA 4.1%
Government of Argentina,
b,c FRN, 5.475%, 8/03/12 .............................................................. 45,600,000 $ 32,809,200
d GDP Linked Security, 12/15/35 ..................................................... 30,370,000 EUR 6,140,325
d GDP Linked Security, 12/15/35 ..................................................... 63,200,000 9,972,960
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48,922,489
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AUSTRALIA 3.4%
New South Wales Treasury Corp., 8.00%, 3/01/08 ....................................... 16,000,000 AUD 13,414,248
Queensland Treasury Corp., 07G, 8.00%, 9/14/07 ....................................... 33,100,000 AUD 27,545,103
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40,959,351
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BRAZIL 5.7%
Nota Do Tesouro Nacional,
9.762%, 1/01/10 ................................................................... 7,500 e BRL 3,869,590
9.762%, 1/01/12 ................................................................... 59,200 e BRL 30,582,603
9.762%, 1/01/14 ................................................................... 15,000 e BRL 7,771,419
10.00%, 1/01/17 ................................................................... 20,500 e BRL 10,654,374
f Index Linked, 6.00%, 11/15/09 ..................................................... 8,700 e BRL 7,300,883
f Index Linked, 6.00%, 5/15/15 ...................................................... 9,400 e BRL 7,963,288
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68,142,157
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CANADA 6.6%
Government of Canada, 7.25%, 6/1/07 .................................................. 9,300,000 CAD 8,701,347
Province of Alberta, 5.00%, 12/16/08 ................................................. 28,530,000 CAD 26,849,645
Province of British Columbia, 6.00%, 6/09/08 ......................................... 7,000,000 CAD 6,643,189
Province of Manitoba, 6.375%, 9/01/15 ................................................ 14,800,000 NZD 10,187,829
Province of Ontario,
6.125%, 9/12/07 ................................................................... 15,840,000 CAD 14,897,573
3.875%, 3/08/08 ................................................................... 6,800,000 CAD 6,337,335
6.25%, 6/16/15 .................................................................... 8,460,000 NZD 5,769,132
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79,386,050
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GERMANY 4.6%
KfW Bankengruppe,
b FRN, 0.456%, 8/08/11 .............................................................. 3,800,000,000 JPY 31,243,181
senior note, 8.25%, 9/20/07 ....................................................... 1,509,000,000 ISK 24,059,466
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55,302,647
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INDONESIA 9.0%
Government of Indonesia,
13.15%, 3/15/10 ................................................................... 21,330,000,000 IDR 2,720,560
15.425%, 9/15/10 .................................................................. 4,800,000,000 IDR 656,568
13.15%, 1/15/12 ................................................................... 33,200,000,000 IDR 4,429,713
14.25%, 6/15/13 ................................................................... 84,050,000,000 IDR 12,045,231
14.275%, 12/15/13 ................................................................. 126,836,000,000 IDR 18,428,370
11.00%, 10/15/14 .................................................................. 55,000,000,000 IDR 7,047,128
9.50%, 6/15/15 .................................................................... 33,050,000,000 IDR 3,933,277
10.75%, 5/15/16 ................................................................... 82,245,000,000 IDR 10,505,409
11.50%, 9/15/19 ................................................................... 23,000,000,000 IDR 3,027,801
11.00%, 11/15/20 .................................................................. 359,100,000,000 IDR 45,883,895
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108,677,952
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Quarterly Statement of Investments | 3
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT a VALUE
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BONDS (CONTINUED)
IRAQ 1.1%
g Government of Iraq, Reg S, 5.80%, 1/15/28 ............................................ 20,050,000 $ 12,832,000
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MALAYSIA 4.5%
Government of Malaysia,
8.60%, 12/01/07 ................................................................... 14,085,000 MYR 4,251,368
3.135%, 12/17/07 .................................................................. 2,925,000 MYR 859,638
3.546%, 1/11/08 ................................................................... 11,230,000 MYR 3,309,025
3.569%, 2/14/08 ................................................................... 11,990,000 MYR 3,536,847
7.60%, 3/15/08 .................................................................... 1,540,000 MYR 468,525
3.17%, 5/15/08 .................................................................... 47,720,000 MYR 14,020,427
6.45%, 7/01/08 .................................................................... 7,910,000 MYR 2,402,933
4.305%, 2/27/09 ................................................................... 75,200,000 MYR 22,467,795
7.00%, 3/15/09 .................................................................... 9,960,000 MYR 3,118,563
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54,435,121
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MEXICO 2.4%
Government of Mexico,
8.00%, 12/17/15 ................................................................... 305,000 h MXN 2,917,198
10.00%, 12/05/24 .................................................................. 2,207,000 h MXN 25,481,272
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28,398,470
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NEW ZEALAND 1.1%
Government of New Zealand, 6.00%, 11/15/11 ........................................... 18,273,000 NZD 13,002,326
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PERU 3.7%
Government of Peru,
7.84%, 8/12/20 .................................................................... 47,200,000 PEN 17,637,153
Series 7, 8.60%, 8/12/17 .......................................................... 61,545,000 PEN 23,685,211
Peru Bond Soberano, 9.91%, 5/05/15 ................................................... 6,500,000 PEN 2,618,984
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43,941,348
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PHILIPPINES 0.1%
g Government of the Philippines, Reg S, 9.125%, 2/22/10 ................................ 770,000 EUR 1,145,723
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POLAND 4.5%
Government of Poland,
6.00%, 5/24/09 .................................................................... 57,500,000 PLN 20,772,828
5.75%, 9/23/22 .................................................................... 90,500,000 PLN 33,168,150
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53,940,978
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SINGAPORE 1.6%
Government of Singapore,
2.625%, 10/01/07 .................................................................. 5,950,000 SGD 3,897,997
1.50%, 4/01/08 .................................................................... 2,400,000 SGD 1,561,625
5.625%, 7/01/08 ................................................................... 20,110,000 SGD 13,632,748
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19,092,370
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SLOVAK REPUBLIC 1.7%
Government of Slovakia,
4.80%, 4/14/09 .................................................................... 298,100,000 SKK 11,957,210
7.50%, 3/13/12 .................................................................... 84,000,000 SKK 3,774,628
4.90%, 2/11/14 .................................................................... 53,300,000 SKK 2,172,742
5.30%, 5/12/19 .................................................................... 50,200,000 SKK 2,124,491
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20,029,071
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4 | Quarterly Statement of Investments
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT a VALUE
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BONDS (CONTINUED)
SOUTH KOREA 9.3%
Government of Korea, 5.77%, 10/09/07 ................................................. 39,640,000,000 KRW $ 42,818,549
Korea Treasury Note,
4.75%, 3/12/08 .................................................................... 8,075,000,000 KRW 8,674,417
4.25%, 9/10/08 .................................................................... 56,200,550,000 KRW 59,910,787
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111,403,753
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i SUPRANATIONAL 7.9%
j European Bank For Reconstruction & Development, senior note, 5.10%, 6/12/09 .......... 125,000,000 PLN 44,599,117
European Investment Bank,
2.125%, 9/20/07 ................................................................... 1,600,000,000 JPY 13,204,325
b senior note, FRN, 0.508%, 9/21/11 ................................................. 2,000,000,000 JPY 16,437,338
Inter-American Development Bank,
6.00%, 12/15/17 ................................................................... 6,000,000 NZD 4,020,894
senior note, 7.50%, 12/05/24 ...................................................... 185,000,000 MXN 17,318,080
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95,579,754
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SWEDEN 9.0%
Government of Sweden,
8.00%, 8/15/07 .................................................................... 554,665,000 SEK 80,844,352
6.50%, 5/05/08 .................................................................... 184,600,000 SEK 27,331,931
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108,176,283
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THAILAND 1.7%
Bank of Thailand Bond,
5.00%, 1/12/08 .................................................................... 187,040,000 THB 5,462,950
5.50%, 8/10/08 .................................................................... 308,990,000 THB 9,164,651
Government of Thailand,
4.125%, 2/12/08 ................................................................... 178,700,000 THB 5,195,341
8.50%, 12/08/08 ................................................................... 31,000,000 THB 965,156
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20,788,098
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UNITED STATES 3.2%
FNMA,
2.125%, 10/09/07 .................................................................. 4,020,000,000 JPY 33,205,266
1.75%, 3/26/08 .................................................................... 660,000,000 JPY 5,467,349
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38,672,615
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TOTAL BONDS (COST $919,899,379) ........................................................ 1,022,828,552
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Quarterly Statement of Investments | 5
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT a VALUE
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SHORT TERM INVESTMENTS 13.1%
FOREIGN GOVERNMENT AND AGENCY SECURITIES 13.0%
EGYPT 2.8%
k Egypt Certificate of Deposit, 9/12/07 ................................................ 8,000,000 EGP $ 1,377,524
k Egypt Treasury Bills, 6/19/07 - 1/22/08 .............................................. 192,075,000 EGP 32,890,750
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34,268,274
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MALAYSIA 3.4%
k Malaysia Treasury Bills, 11/01/07 - 2/28/08 .......................................... 141,950,000 MYR 40,941,463
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NORWAY 5.0%
k Norway Treasury Bills, 9/19/07 - 3/19/08 ............................................. 370,255,000 NOK 60,014,826
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SWEDEN 0.4%
k Sweden Treasury Bill, 12/19/07 ....................................................... 31,580,000 SEK 4,477,938
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THAILAND 1.4%
k Thailand Treasury Bills, 12/06/07 - 1/10/08 .......................................... 584,590,000 THB 16,616,989
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TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES (COST $151,489,577) ................... 156,319,490
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TOTAL INVESTMENTS BEFORE MONEY MARKET FUND (COST $1,071,388,955) ..................... 1,179,148,042
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SHARES
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MONEY MARKET FUND (COST $1,260,639) 0.1%
UNITED STATES
l Franklin Institutional Fiduciary Trust Money Market Portfolio, 4.83% ................. 1,260,639 1,260,639
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TOTAL SHORT TERM INVESTMENTS (COST $152,750,216) ..................................... 157,580,129
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TOTAL INVESTMENTS (COST $1,072,649,594) 98.3% ........................................ 1,180,408,681
NET UNREALIZED GAIN ON FORWARD EXCHANGE CONTRACTS 0.0% m ............................. 25,469
OTHER ASSETS, LESS LIABILITIES 1.7% .................................................. 20,837,112
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NET ASSETS 100.0% .................................................................... $ 1,201,271,262
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6 | Quarterly Statement of Investments
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
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CURRENCY ABBREVIATIONS
AUD - Australian Dollar
BRL - Brazilian Real
CAD - Canadian Dollar
EGP - Egyptian Pound
EUR - Euro
IDR - Indonesian Rupiah
ISK - Iceland Krona
JPY - Japanese Yen
KRW - South Korean Won
MXN - Mexican Peso
MYR - Malaysian Ringgit
NOK - Norwegian Krone
NZD - New Zealand Dollar
PEN - Peruvian Nuevo Sol
PLN - Polish Zloty
SEK - Swedish Krona
SGD - Singapore Dollar
SKK - Slovak Koruna
THB - Thailand Baht
SELECTED PORTFOLIO ABBREVIATIONS
FNMA - Federal National Mortgage Association
FRN - Floating Rate Note
GDP - Gross Domestic Product
a The principal amount is stated in U.S. dollars unless otherwise indicated.
b The coupon rate shown represents the rate at period end.
c The principal amount is stated in original face, and scheduled paydowns are
reflected in the market price on ex-date.
d Securities are linked to the Argentine GDP and do not pay principal over the
life of the security or at expiration. Securities entitle the holder to receive
only variable income payments, subject to certain conditions, which are based on
growth of the Argentine GDP and the principal or "notional" value of these GDP
linked securities.
e Principal amount is stated in 1,000 Brazilian Real Units.
f Redemption price at maturity is adjusted for inflation.
g Security was purchased pursuant to Regulation S under the Securities Act of
1933, which exempts from registration securities offered and sold outside of the
United States. Such a security cannot be sold in the United States without
either an effective registration statement filed pursuant to the Securities Act
of 1933, or pursuant to an exemption from registration. These securities have
been deemed liquid under guidelines approved by the Fund's Board of Trustees. At
May 31, 2007, the aggregate value of these securities was $13,977,723,
representing 1.16% of net assets.
h Principal amount is stated in 100 Mexican Peso Units.
i A supranational organization is an entity formed by two or more central
governments through international treaties.
j Security purchased on a when-issued or delayed delivery basis.
k The security is traded on a discount basis with no stated coupon rate.
l The Franklin Institutional Fiduciary Trust Money Market Portfolio is managed
by the Fund's investment manager. The rate shown is the annualized seven-day
yield at period end.
m Rounds to less than 0.1% of net assets.
Quarterly Statement of Investments | See Notes to Statement of Investments. | 7
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
1. ORGANIZATION
Templeton Global Income Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a non-diversified, closed-end investment
company.
2. SECURITY VALUATION
Securities listed on a securities exchange or on the NASDAQ National Market
System are valued at the last quoted sale price or the official closing price of
the day, respectively. Over-the-counter securities and listed securities for
which there is no reported sale are valued within the range of the most recent
quoted bid and ask prices. Securities that trade in multiple markets or on
multiple exchanges are valued according to the broadest and most representative
market. Investments in open-end mutual funds are valued at the closing net asset
value.
Corporate debt securities and government securities generally trade in the
over-the-counter market rather than on a securities exchange. The Fund may
utilize independent pricing services, quotations from bond dealers, and
information with respect to bond and note transactions, to assist in determining
a current market value for each security. The Fund's pricing services may use
valuation models or matrix pricing which considers information with respect to
comparable bond and note transactions, quotations from bond dealers, or by
reference to other securities that are considered comparable in such
characteristics as rating, interest rate spreads and yield curves, to determine
current value.
The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the availability (including the reliability) of the value of a portfolio
security held by the Fund. If such an event occurs, the securities may be valued
using fair value procedures, which may include the use of independent pricing
services. All security valuation procedures are approved by the Fund's Board of
Trustees.
8 | Quarterly Statement of Investments
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
3. INCOME TAXES
At May 31, 2007, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments ................................ $1,088,849,053
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Unrealized appreciation ............................ $ 101,279,432
Unrealized depreciation ............................ (9,719,804)
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Net unrealized appreciation (depreciation) ......... $ 91,559,628
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4. FORWARD EXCHANGE CONTRACTS
At May 31, 2007, the Fund had the following forward exchange contracts
outstanding:
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CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN LOSS
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CONTRACTS TO BUY
345,000,000 Japanese Yen ......................... 3,077,060 6/27/07 $ -- $ (231,934)
1,350,000,000 Japanese Yen ......................... 11,677,322 7/17/07 -- (513,826)
223,340,000 Japanese Yen ......................... 2,000,000 9/04/07 -- (141,708)
225,000,000 Indian Rupee ......................... 7,285,514 NZD 9/21/07 207,449
560,000,000 Iceland Krona ........................ 7,488,633 10/09/07 1,335,995 --
422,775,000 Indian Rupee ......................... 14,035,769 NZD 10/29/07 133,345 --
125,000,000 Indian Rupee ......................... 4,212,016 NZD 10/29/07 -- (5,817)
285,000,000 Indian Rupee ......................... 9,773,663 NZD 10/30/07 -- (137,309)
1,950,000,000 Japanese Yen ......................... 16,746,822 11/09/07 -- (388,874)
1,508,082,050 Japanese Yen ......................... 12,931,717 11/13/07 -- (274,591)
543,250,000 Japanese Yen ......................... 4,793,439 12/05/07 -- (221,711)
5,394,000 Romania Leu-New ...................... 1,579,132 EUR 12/27/07 76,645 --
1,056,356,000 Kazakhstan Tenge ..................... 8,680,000 1/16/08 -- (23,552)
1,946,000,000 Kazakhstan Tenge ..................... 16,000,000 1/18/08 -- (53,697)
128,800,000 Japanese Yen ......................... 1,121,639 1/22/08 -- (31,481)
Quarterly Statement of Investments | 9
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
4. FORWARD EXCHANGE CONTRACTS (CONTINUED)
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CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN LOSS
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CONTRACTS TO SELL
16,563,648 New Zealand Dollar ................... 495,418,717 INR 7/27/07 $ 78,876 $ --
52,217,395 Mexican Peso ......................... 2,562,829,758 CLP 8/16/07 33,946 --
36,225,716 Mexican Peso ......................... 1,767,670,025 CLP 8/20/07 4,719 --
29,507,162 Mexican Peso ......................... 1,414,986,459 CLP 9/12/07 -- (39,698)
11,063,812 Mexican Peso ......................... 527,411,931 CLP 9/14/07 -- (20,734)
2,470,410 Euro ................................. 371,846,113 JPY 12/06/07 -- (213,915)
30,997,821 Mexican Peso ......................... 124,614,340 INR 1/22/08 186,789 --
65,279,583 Mexican Peso ......................... 258,415,756 INR 2/28/08 291,304 --
65,781,104 Mexican Peso ......................... 261,052,311 INR 3/03/08 309,006 --
50,000,000 Mexican Peso ......................... 188,725,000 INR 5/21/08 -- (3,668)
70,037,979 Mexican Peso ......................... 760,290,277 KZT 5/27/08 -- (145,267)
60,216,771 Mexican Peso ......................... 646,270,473 KZT 5/29/08 -- (184,823)
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UNREALIZED GAIN (LOSS) ON FORWARD EXCHANGE CONTRACTS ........................ $2,658,074 $(2,632,605)
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NET UNREALIZED GAIN ON FORWARD EXCHANGE CONTRACTS ......................... $ 25,469
============
a In U.S. Dollar unless otherwise indicated.
CURRENCY ABBREVIATIONS
CLP - Chilean Peso
EUR - Euro
INR - Indian Rupee
JPY - Japanese Yen
KZT - Kazakhstan Tenge
NZD - New Zealand Dollar
For information on the Fund's policy regarding other significant accounting
policies, please refer to the Fund's most recent semiannual or annual
shareholder report.
10 | Quarterly Statement of Investments
Item 2. 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 Quarterly Schedule of Portfolio
Holdings on Form N-Q, 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 Quarterly Schedule of Portfolio Holdings
on Form N-Q.
Item 3. Exhibits.
(a) Certification pursuant to Section 30a-2 under the Investment Company Act of
1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration,
and Galen G. Vetter, Chief Financial 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.
Templeton Global Income Fund
By /s/JIMMY D. GAMBILL
-----------------------
Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date July 26, 2007
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/JIMMY D. GAMBILL
-----------------------
Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date July 26, 2007
By /s/GALEN G. VETTER
-----------------------
Galen G. Vetter
Chief Financial Officer
Date July 26, 2007