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 811-05459
----------
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
--------------
Date of fiscal year end: 8/31
-----
Date of reporting period: 2/29/08
--------
ITEM 1. REPORTS TO STOCKHOLDERS.
[GRAPHIC OMITTED]
--------------------------------------------------------------------------------
FEBRUARY 29, 2008
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SEMIANNUAL REPORT INCOME
--------------------------------------------------------------------------------
TEMPLETON
GLOBAL INCOME FUND
--------------------------------------------------------------------------------
[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
SEMIANNUAL REPORT
Templeton Global Income Fund .............................................. 1
Performance Summary ....................................................... 7
Important Notice to Shareholders .......................................... 8
Financial Highlights and Statement of Investments ......................... 9
Financial Statements ...................................................... 15
Notes to Financial Statements ............................................. 18
Annual Meeting of Shareholders ............................................ 29
Dividend Reinvestment and Cash Purchase Plan .............................. 30
Shareholder Information ................................................... 32
--------------------------------------------------------------------------------
Semiannual Report
Templeton Global Income Fund
YOUR FUND'S GOALS AND MAIN INVESTMENTS: Templeton Global Income Fund seeks high,
current income, with a secondary goal of capital appreciation. Under normal
market conditions, the Fund invests at least 80% of its net assets in
income-producing securities, including debt securities of U.S. and foreign
issuers, including emerging markets.
--------------------------------------------------------------------------------
PORTFOLIO BREAKDOWN
Based on Total Net Assets as of 2/29/08
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Government Bonds ....................................................... 90.8%
Short-Term Investments & Other Net Assets .............................. 9.2%
--------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to bring you Templeton Global Income Fund's semiannual report for
the period ended February 29, 2008.
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 10.
Annual Report | 1
--------------------------------------------------------------------------------
WHAT IS A CURRENT ACCOUNT?
--------------------------------------------------------------------------------
A current account is that part of the balance of payments where all of one
country's international transactions in goods and services are recorded.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
WHAT IS BALANCE OF PAYMENTS?
--------------------------------------------------------------------------------
Balance of payments is a record of all of a country's exports and imports of
goods and services, borrowing and lending with the rest of the world during a
particular time period. It helps a country evaluate its competitive strengths
and weaknesses and forecast the strength of its currency.
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
For the six months under review, Templeton Global Income Fund posted cumulative
total returns of +15.24% based on market price and +14.11% based on net asset
value. The Fund outperformed the J.P. Morgan (JPM) Global Government Bond Index
(GGBI), which posted cumulative total returns of +4.67% in local currency terms
and +12.86% in U.S. dollar terms for the same period. 1 You can find the Fund's
long-term performance data in the Performance Summary on page 7.
ECONOMIC AND MARKET OVERVIEW
The six-month period was marked by rising delinquencies in U.S. subprime
mortgages, broader global credit deleveraging and the resulting fallout on the
global economy and financial markets. In an environment of heightened
uncertainty, equity and credit markets broadly came under pressure while
developed bond markets benefited from flight to quality. Additionally, the U.S.
dollar depreciated further while commodity prices continued to rise.
The U.S. Federal Reserve Board (Fed) aggressively cut interest rates over the
past six months to mitigate the credit shock and housing market slump's negative
effects. The Fed cut the federal funds target rate 225 basis points (bps) from
5.25% to 3.00% by period-end. U.S. economic growth slowed to an annualized 0.6%
in fourth quarter 2007, accompanied by significant declines in consumer
confidence as housing prices contracted and the labor market began shedding
jobs. While slower domestic demand growth relieved pressure on the widening U.S.
current account deficit, the deficit's magnitude remained difficult to finance
through capital inflows amid slower growth prospects and lower short-term
interest rates, adding to depreciation pressure on the U.S. dollar.
The euro hit a record high against the U.S. dollar, reaching $1.52 per euro, due
to relative growth and interest rates. 2 The European Central Bank (ECB)
provided increased liquidity to the European banking system to help alleviate
the global credit crunch's impact. As a result, the ECB focused on inflation
risks and left interest rates unchanged at 4.00% over the period. Higher energy
and food prices pushed consumer price growth to 3.2% in January 2008, above the
ECB's 2.0% inflation target. 3 Economic growth across Europe moderated due to
the effects of previous interest rate hikes and slower growth among key
1. Source: J.P. Morgan. The JPM GGBI tracks total returns for liquid,
fixed-rate, domestic government bonds with maturities greater than one year
issued by developed countries globally. The index is unmanaged and includes
reinvested interest. One cannot invest directly in an index, nor is an index
representative of the Fund's portfolio.
2. Source: Exshare (via Compustat via Factset).
3. Source: Eurostat.
2 | Semiannual Report
trading partners. Additionally, eurozone economic growth moderated to 2.2% in
fourth quarter 2007 year-over-year as higher inflation eroded consumers'
purchasing power and consumption dropped for the first time in six years. 4
Non-euro Europe's economic growth remained mostly stronger than in euro
economies resulting from stronger investment growth and tighter labor markets.
For example, Norway's, Poland's and Sweden's economies grew 6.3%, 6.1% and 2.8%,
respectively, in fourth quarter 2007 year-over-year. 5 Rising wage and cost
pressures prompted these economies' central banks to continue hiking interest
rates despite the global credit crisis.
China remained an important contributor to Asia's continued robust growth. Gross
domestic product (GDP) grew 11.2% in fourth quarter 2007 year-over-year.
Economic growth remained reasonably strong in other countries, rising 7.3% in
Malaysia, 5.5% in South Korea and 5.4% in Singapore, over the same period. 6
Chinese monetary authorities continued to tighten credit conditions through
various channels including increasing interest rates 45 bps over the period.
However, inflation pressures picked up, primarily reflecting higher global
commodity prices, and China's consumer price inflation jumped to 8.7%
year-over-year in February 2008. 7 Asia continued to generate large current
account surpluses and accumulate foreign exchange reserves. With increased risk
aversion and volatile equity performance, sovereign wealth funds helped provide
stability to U.S. and European financial systems through bank recapitalization.
INVESTMENT STRATEGY
We invest selectively in bonds around the world to generate income for the Fund,
seeking opportunities while monitoring changes in interest rates, currency
exchange rates and credit risks.
MANAGER'S DISCUSSION
The Fund's total return was influenced by various factors, including interest
rate developments, currency movements and exposure to sovereign debt markets.
GEOGRAPHIC BREAKDOWN
Based on Total Net Assets as of 2/29/08
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Asia Pacific ........................................................... 31.6%
Americas ............................................................... 24.2%
Other Europe ........................................................... 16.5%
EMU Members* ........................................................... 12.9%
Supranationals** ....................................................... 7.7%
Middle East & Africa ................................................... 5.9%
Other Assets, less Liabilities ......................................... 1.2%
*The Fund's EMU investments were in Germany, France and Austria.
**The Fund's supranational investments were denominated in the Japanese yen,
Mexican peso, New Zealand dollar and Polish zloty.
4. Source: www.retnews.com, "Euro Zone Q4 Economic Growth Slows on Spending
Decline," 3/4/08.
5. Source: Statistics Norway; Statistics Sweden.
6. Source: Bank of Korea; Singapore Department of Statistics.
7. Source: National Bureau of Statistics.
Semiannual Report | 3
--------------------------------------------------------------------------------
WHAT IS DURATION?
--------------------------------------------------------------------------------
Duration is a measure of a bond's price sensitivity to interest rate changes. In
general, a portfolio of securities with a lower duration can be expected to be
less sensitive to interest rate changes than a portfolio with a higher duration.
--------------------------------------------------------------------------------
WHAT IS A CARRY TRADE?
--------------------------------------------------------------------------------
Carry trade is a strategy in which an investor sells a certain currency with a
relatively low interest rate and uses the funds to purchase a different currency
yielding a higher interest rate. A trader using this strategy attempts to
capture the difference between the rates.
--------------------------------------------------------------------------------
INTEREST RATE STRATEGY
Banking sector tensions and flight to quality drove treasury yields lower in
developed bond markets during the six months under review while financial market
contagion pushed yields higher in some emerging bond markets. While economic
activity remained reasonably positive outside the U.S., we extended duration in
countries where we believed the market was too optimistic in its expectations
for the economy to fully decouple from global credit market events or the U.S.
economic slowdown. Two examples are Mexico and South Korea. As a U.S. neighbor,
the Mexican economy has strong economic links to the U.S. economy given the
mobility of goods, labor and capital flows. Mexico's long-term bond yields fell
31 bps while its bond market returned +5.55% in local currency terms as measured
by the J.P. Morgan (JPM) Global Bond Index (GBI) Broad. 8 In South Korea, the
central bank has increased interest rates a cumulative 100 basis points over the
past two years, and the market has been pricing in a continuation of this
tightening cycle. However, in our view, the combination of strong trade links to
the U.S. and moderating domestic growth could lead to a South Korean economic
slowdown. Therefore, we viewed South Korean interest rates as attractive and
added exposure. We believe our South Korean position could also benefit from
potential cyclical undercurrents in China following policy tightening amid
global recoupling and the risk of asset price corrections. South Korean
long-term bond yields fell 34 bps during the period and the bond market returned
+4.26% in local currency terms according to the JPM GBI Broad. 8 Fund
positioning with respect to interest rates and duration broadly detracted from
Fund returns over the period largely due to our underweighted position in
developed markets at the onset of the global credit shock. We continued to avoid
markets where we believed valuations were stretched such as in the U.S. However,
this worked against the Fund's relative performance as the U.S. Treasury market
returned +8.39% as measured by the Citigroup World Government Bond Index (WGBI)
in local currency terms. 9
CURRENCY STRATEGY
The U.S. dollar fell 8.42% against its major trading partners during the
six-month period as the U.S. failed to attract sufficient capital flows to
finance its 5.1% of GDP current account deficit. 10 The Fund benefited from its
long-held pessimistic view on the U.S. dollar. Reflecting our increasingly
cautious outlook
8. Source: J.P. Morgan. The JPM GBI Broad is a combination of the GBI Global and
selected other countries, launched in 1997 to increase country and return
diversification in international fixed income markets. Local bond market returns
are based on country subindexes of the JPM GBI Broad.
9. Source: Citigroup. The Citigroup WGBI is market capitalization weighted and
tracks total returns of government bonds in 23 developed countries globally.
10. Source: Federal Reserve H10 Report; U.S. Department of Commerce, Bureau of
Economic Analysis.
4 | Semiannual Report
on global and financial markets, we increased exposure to currencies with large
current account surpluses that were previously used to fund the carry trade,
such as the Japanese yen or Swiss franc. These currencies benefited from rising
volatility in global markets. The Japanese yen rose 11.34% against the U.S.
dollar and the Swiss franc 15.76%, benefiting the Fund's relative performance. 2
Additionally, key currency positions generated strong positive gains against the
U.S. dollar, including the Polish zloty, Brazilian real, Swedish krona and
Malaysian ringgit, which rose 21.17%, 16.36%, 11.64% and 9.61%, respectively. 2
We continued to see greater value in non-euro currencies than the euro, and
these currencies' gains helped offset the relative impact of being underweighted
in the euro, compared with the benchmark, at a time when the euro hit record
highs against the U.S. dollar. During the period, the euro rose 11.36% against
the U.S. dollar. 2 Near the end of the reporting period, we used this euro
strength to hedge a portion of the implicit euro currency risk in the
portfolio's non-euro European positions. Since the beginning of 2002, the euro
has appreciated against the U.S. dollar from a rate of $0.89 per euro to $1.52
by the end of February 2008, or a cumulative 71% increase. 2 Rising global
demand and a strong profit environment over that period has helped the eurozone
cope with a stronger currency. However, we believed the euro may become
vulnerable to a more challenging global growth environment given the extent of
what we assessed as euro overvaluation. We continued to believe the U.S. dollar
is still undergoing a multi-year weak currency cycle as global imbalances
unwind. However, we found more value in Asian currencies relative to the U.S.
dollar given the magnitude of the regional imbalances, as reflected by a large
current account deficit in the U.S. and large current surpluses in Asia.
GLOBAL SOVEREIGN DEBT STRATEGY
The Fund also invested in investment-grade and subinvestment-grade sovereign
debt. As an asset class, these investments typically compensate for greater
credit risk by offering higher yields relative to U.S. and European benchmark
treasury yield curves. U.S. dollar-denominated emerging market debt generated a
six-month return of +5.51% as measured by the JPM Emerging Markets Bond Index
Global (EMBIG). 11 Sovereign interest rate spreads rose from 235 bps at the
beginning of the reporting period to 306 bps by period-end, as emerging market
credit yields fell less than U.S. Treasury yields because of Fed rate cuts. The
Fund had limited exposure to U.S. dollar-denominated emerging market debt given
valuations, but we noted that credit fundamentals have improved over the past
few years as shown by reserve accumulation, more supportive economic policies
and improved debt ratios.
--------------------------------------------------------------------------------
CURRENCY BREAKDOWN
2/29/08
% OF TOTAL
NET ASSETS
--------------------------------------------------------------------------------
ASIA PACIFIC 65.6%
Japanese Yen 32.6%
Malaysian Ringgit 12.1%
Indonesian Rupiah 6.0%
Kazakhstani Tenge 4.7%
Indian Rupee 3.9%
Australian Dollar 3.2%
South Korean Won 1.9%
Singapore Dollar 1.7%
New Zealand Dollar* -0.5%
--------------------------------------------------------------------------------
EUROPE 5.2%
Swiss Franc 12.6%
Swedish Krona 12.5%
Polish Zloty 7.4%
Norwegian Krone 6.9%
Czech Koruna 1.3%
Romanian Leu-New* -4.0%
Euro* -31.5%
--------------------------------------------------------------------------------
AMERICAS 24.4%
U.S. Dollar 9.0%
Brazilian Real 7.3%
Peruvian Nuevo Sol 3.3%
Canadian Dollar 2.4%
Chilean Peso 2.3%
Mexican Peso 0.1%
--------------------------------------------------------------------------------
MIDDLE EAST & AFRICA 4.8%
Egyptian Pound 4.8%
--------------------------------------------------------------------------------
*Holding is a negative percentage because of the Fund's holdings of forward
currency exchange contracts.
11. Source: J.P. Morgan. The JPM EMBIG tracks total returns for U.S.
dollar-denominated debt instruments issued by emerging market sovereign and
quasi-sovereign entities: Brady bonds, loans and Eurobonds.
Semiannual Report | 5
Thank you for your continued participation in Templeton Global Income Fund. We
look forward to serving your future investment needs.
Sincerely,
[PHOTO OMITTED] /s/ Michael Hasenstab
Michael Hasenstab, Ph.D.
Portfolio Manager
Templeton Global Income Fund
THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF FEBRUARY 29, 2008, 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.
6 | Semiannual Report
Performance Summary as of 2/29/08
Your dividend income will vary depending on dividends or interest paid by
securities in the Fund's portfolio, adjusted for operating expenses. Capital
gain distributions are net profits realized from the sale of portfolio
securities. Total return reflects reinvestment of the Fund's dividends and
capital gain distributions, if any, and any unrealized gains or losses. Total
returns do not reflect any sales charges paid at inception or brokerage
commissions paid on secondary market purchases. The performance table does not
reflect any taxes that a shareholder would pay on Fund dividends, capital gains
distributions, if any, or any realized gains on the sale of Fund shares.
PRICE AND DISTRIBUTION INFORMATION
---------------------------------------------------------------------------------------------------
SYMBOL: GIM CHANGE 2/29/08 8/31/07
---------------------------------------------------------------------------------------------------
Net Asset Value (NAV) +$0.39 $9.34 $8.95
---------------------------------------------------------------------------------------------------
Market Price (NYSE) +$0.46 $9.47 $9.01
---------------------------------------------------------------------------------------------------
DISTRIBUTIONS (9/1/07-2/29/08)
---------------------------------------------------------------------------------------------------
Dividend Income $0.8188
---------------------------------------------------------------------------------------------------
PERFORMANCE
---------------------------------------------------------------------------------------------------
6-MONTH 1-YEAR 5-YEAR 10-YEAR
---------------------------------------------------------------------------------------------------
Cumulative Total Return 1
---------------------------------------------------------------------------------------------------
Based on change in NAV 2 +14.11% +19.20% +80.60% +154.35%
---------------------------------------------------------------------------------------------------
Based on change in market price 3 +15.24% +15.63% +86.25% +195.87%
---------------------------------------------------------------------------------------------------
Average Annual Total Return 1
---------------------------------------------------------------------------------------------------
Based on change in NAV 2 +14.11% +19.20% +12.54% +9.78%
---------------------------------------------------------------------------------------------------
Based on change in market price 3 +15.24% +15.63% +13.24% +11.46%
---------------------------------------------------------------------------------------------------
PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN.
ENDNOTES
SPECIAL RISKS ARE ASSOCIATED WITH FOREIGN INVESTING, INCLUDING CURRENCY
VOLATILITY, ECONOMIC INSTABILITY AND SOCIAL AND POLITICAL DEVELOPMENTS OF
COUNTRIES WHERE THE FUND INVESTS. EMERGING MARKETS INVOLVE HEIGHTENED RISKS
RELATED TO THE SAME FACTORS, IN ADDITION TO THOSE ASSOCIATED WITH THEIR
RELATIVELY SMALL SIZE AND LESSER LIQUIDITY. ALSO, AS A NONDIVERSIFIED INVESTMENT
COMPANY, THE FUND MAY INVEST IN A RELATIVELY SMALL NUMBER OF ISSUERS AND, AS A
RESULT, BE SUBJECT TO A GREATER RISK OF LOSS WITH RESPECT TO ITS PORTFOLIO
SECURITIES.
1. Total return calculations represent the cumulative and average annual changes
in value of an investment over the periods indicated. Six-month return has not
been annualized.
2. Assumes reinvestment of distributions based on net asset value.
3. Assumes reinvestment of distributions based on the dividend reinvestment and
cash purchase plan.
Semiannual Report | 7
Important Notice to Shareholders
SHARE REPURCHASE PROGRAM
The Fund's Board previously authorized management to implement an open-market
share repurchase program pursuant to which the Fund may purchase Fund shares,
from time to time, in open-market transactions, at the discretion of management.
This authorization remains in effect.
8 | Semiannual Report
Templeton Global Income Fund
FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2008 YEAR ENDED AUGUST 31,
(UNAUDITED) 2007 2006 2005 2004 2003
----------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)
Net asset value, beginning of
period ........................... $ 8.95 $ 8.93 $ 9.02 $ 8.77 $ 8.18 $ 7.29
----------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income a .......... 0.21 0.40 0.37 0.39 0.41 0.41
Net realized and unrealized gains
(losses) ......................... 1.00 0.52 0.33 0.49 0.72 0.98
----------------------------------------------------------------------------------------------
Total from investment operations ... 1.21 0.92 0.70 0.88 1.13 1.39
----------------------------------------------------------------------------------------------
Less distributions from net
investment income and net realized
foreign currency gains ........... (0.82) (0.90) (0.79) (0.63) (0.54) (0.50)
----------------------------------------------------------------------------------------------
Net asset value, end of period ..... $ 9.34 $ 8.95 $ 8.93 $ 9.02 $ 8.77 $ 8.18
==============================================================================================
Market value, end of period b ...... $ 9.47 $ 9.01 $ 9.15 $ 8.85 $ 8.56 $ 7.95
==============================================================================================
Total return (based on market value
per share) c ..................... 15.24% 8.63% 13.39% 10.61% 14.69% 15.37%
RATIOS TO AVERAGE NET ASSETS d
Expenses ........................... 0.75% e 0.75% e 0.80% e 0.76% e 0.77% e 0.72%
Net investment income .............. 4.68% 4.45% 4.16% 4.22% 4.66% 5.16%
SUPPLEMENTAL DATA
Net assets, end of period
(000's) .......................... $1,222,525 $ 1,170,414 $ 1,161,850 $ 1,172,240 $ 1,136,976 $1,058,791
Portfolio turnover rate ............ 43.53% 49.24% 49.20% 41.81% 48.85% 69.77%
a Based on average daily shares outstanding.
b Based on the last sale on NYSE Euronext (formerly the New York Stock
Exchange).
c Total return is not annualized for periods less than one year.
d Ratios are annualized for periods less than one year.
e Benefit of expense reduction rounds to less than 0.01%.
Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 9
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, FEBRUARY 29, 2008 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT a VALUE
----------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS 90.8%
BONDS 90.8%
ARGENTINA 2.3%
b,c Government of Argentina, FRN, 3.092%, 8/03/12 ................................... 50,200,000 $ 27,658,275
---------------
AUSTRALIA 2.5%
Queensland Treasury Corp., 6.00%, 7/14/09 ....................................... 33,055,000 AUD 30,289,198
---------------
AUSTRIA 4.7%
d Oesterreichische Kontrollbank AG, senior bond, 2.75%, 6/14/11 ................... 60,000,000 CHF 58,170,232
---------------
BRAZIL 7.3%
Nota Do Tesouro Nacional,
9.762%, 1/01/12 ............................................................... 39,335 e BRL 21,508,062
9.762%, 1/01/14 ............................................................... 15,000 e BRL 7,977,999
9.762%, 1/01/17 ............................................................... 54,900 e BRL 28,205,241
f Index Linked, 6.00%, 5/15/15 .................................................. 9,400 e BRL 8,873,731
f Index Linked, 6.00%, 5/15/45 .................................................. 23,625 e BRL 22,310,857
---------------
88,875,890
---------------
CANADA 3.8%
Province of Alberta, 5.00%, 12/16/08 ............................................ 28,040,000 CAD 28,936,382
Province of Manitoba, 6.375%, 9/01/15 ........................................... 14,800,000 NZD 10,967,394
Province of Ontario, 6.25%, 6/16/15 ............................................. 8,460,000 NZD 6,188,985
---------------
46,092,761
---------------
EGYPT 0.1%
d,g Egypt Treasury Bill, 3/03/09 .................................................... 8,850,000 EGP 1,510,384
---------------
FRANCE 3.0%
Government of France, 4.25%, 10/25/17 ........................................... 23,500,000 EUR 36,268,776
---------------
GERMANY 5.2%
c KfW Bankengruppe, FRN, 0.658%, 8/08/11 .......................................... 6,600,000,000 JPY 63,564,011
---------------
INDONESIA 6.0%
Government of Indonesia,
14.25%, 6/15/13 ............................................................... 84,050,000,000 IDR 11,089,809
14.275%, 12/15/13 ............................................................. 81,836,000,000 IDR 10,889,818
9.50%, 6/15/15 ................................................................ 33,050,000,000 IDR 3,596,379
10.75%, 5/15/16 ............................................................... 82,245,000,000 IDR 9,499,486
11.50%, 9/15/19 ............................................................... 23,000,000,000 IDR 2,711,928
11.00%, 11/15/20 .............................................................. 318,500,000,000 IDR 35,924,507
---------------
73,711,927
---------------
IRAQ 1.2%
h Government of Iraq, Reg S, 5.80%, 1/15/28 ....................................... 20,050,000 14,636,500
---------------
MALAYSIA 10.1%
Government of Malaysia,
6.45%, 7/01/08 ................................................................ 19,510,000 MYR 6,168,052
3.917%, 9/30/08 ............................................................... 600,000 MYR 188,257
4.305%, 2/27/09 ............................................................... 75,200,000 MYR 23,752,112
10 | Semiannual Report
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, FEBRUARY 29, 2008 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT a VALUE
----------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
BONDS (CONTINUED)
MALAYSIA (CONTINUED)
Government of Malaysia, (continued)
7.00%, 3/15/09 ................................................................ 100,460,000 MYR $ 32,596,605
6.844%, 10/01/09 .............................................................. 5,900,000 MYR 1,944,629
3.756%, 4/28/11 ............................................................... 156,755,000 MYR 49,551,264
3.461%, 7/31/13 ............................................................... 9,100,000 MYR 2,838,633
d 3.814%, 2/15/17 ............................................................... 19,240,000 MYR 6,083,360
---------------
123,122,912
---------------
MEXICO 4.6%
Government of Mexico,
9.00%, 12/20/12 ............................................................... 159,000 i MXN 1,576,672
8.00%, 12/19/13 ............................................................... 475,500 i MXN 4,550,819
8.00%, 12/17/15 ............................................................... 305,000 i MXN 2,936,125
7.25%, 12/15/16 ............................................................... 325,000 i MXN 2,988,236
10.00%, 12/05/24 .............................................................. 3,837,000 i MXN 44,040,342
---------------
56,092,194
---------------
NEW ZEALAND 1.1%
Government of New Zealand, 6.00%, 11/15/11 ...................................... 18,273,000 NZD 14,116,125
---------------
NORWAY 2.7%
Government of Norway,
5.50%, 5/15/09 ................................................................ 146,550,000 NOK 28,250,588
6.50%, 5/15/13 ................................................................ 23,500,000 NOK 4,965,249
---------------
33,215,837
---------------
PERU 3.2%
Government of Peru,
7.84%, 8/12/20 ................................................................ 32,200,000 PEN 12,100,001
Series 7, 8.60%, 8/12/17 ...................................................... 61,545,000 PEN 24,417,188
Peru Bond Soberano, 9.91%, 5/05/15 .............................................. 6,500,000 PEN 2,734,345
---------------
39,251,534
---------------
PHILIPPINES 0.1%
h Government of the Philippines, Reg S, 9.125%, 2/22/10 ........................... 770,000 EUR 1,259,271
---------------
POLAND 3.0%
Government of Poland,
6.00%, 5/24/09 ................................................................ 27,500,000 PLN 11,794,443
5.75%, 9/23/22 ................................................................ 60,500,000 PLN 25,564,632
---------------
37,359,075
---------------
SOUTH KOREA 11.1%
Korea Deposit Insurance Corp.,
07-1, 5.57%, 9/14/12 .......................................................... 7,200,000,000 KRW 7,807,705
08-1, 5.28%, 2/15/13 .......................................................... 1,232,000,000 KRW 1,312,018
Semiannual Report | 11
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, FEBRUARY 29, 2008 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT a VALUE
----------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
BONDS (CONTINUED)
SOUTH KOREA (CONTINUED)
Korea Treasury Bond,
5.25%, 9/10/12 ................................................................ 15,946,000,000 KRW $ 17,120,346
5.00%, 9/10/16 ................................................................ 4,656,000,000 KRW 4,898,707
5.50%, 9/10/17 ................................................................ 77,022,600,000 KRW 83,813,066
5.25%, 3/10/27 ................................................................ 19,170,000,000 KRW 20,470,040
---------------
135,421,882
---------------
j SUPRANATIONAL 7.7%
European Bank For Reconstruction & Development, senior note, 5.10%, 6/12/09 ..... 125,000,000 PLN 53,456,903
c European Investment Bank, senior note, FRN, 0.75%, 9/21/11 ...................... 2,000,000,000 JPY 19,256,873
Inter-American Development Bank,
6.00%, 12/15/17 ............................................................... 6,000,000 NZD 4,291,699
senior note, 7.50%, 12/05/24 .................................................. 185,000,000 MXN 16,646,415
---------------
93,651,890
---------------
SWEDEN 10.6%
Government of Sweden,
5.00%, 1/28/09 ................................................................ 518,600,000 SEK 84,830,833
6.50%, 5/05/08 ................................................................ 184,600,000 SEK 30,064,434
g Strip, 9/17/08 ................................................................ 91,000,000 SEK 14,440,385
---------------
129,335,652
---------------
UNITED STATES 0.5%
FNMA, 1.75%, 3/26/08 ............................................................ 660,000,000 JPY 6,356,503
---------------
TOTAL BONDS (COST $1,004,118,966) ............................................... 1,109,960,829
---------------
------------------
NOTIONAL AMOUNT
------------------
k OPTIONS PURCHASED 0.0% l
PUTS
BRAZIL 0.0% l
m Brazilian Real Put, strike price 1.9 BRL, expiration date 4/17/08 ............... $ 100,000 197
m Brazilian Real Put, strike price 2.05 BRL, expiration date 1/20/09 .............. 100,000 2,090
---------------
TOTAL OPTIONS PURCHASED (COST $5,130) ........................................... 2,287
---------------
TOTAL LONG TERM INVESTMENTS (COST $1,004,124,096) ............................... 1,109,963,116
---------------
------------------
PRINCIPAL AMOUNT a
------------------
SHORT TERM INVESTMENTS 8.0%
FOREIGN GOVERNMENT SECURITIES 5.5%
EGYPT 4.6%
d,g Egypt Treasury Bills,
6/24/08 - 2/24/09 ............................................................. 244,925,000 EGP 43,194,253
12/16/08 ...................................................................... 75,050,000 EGP 12,983,563
---------------
56,177,816
---------------
12 | Semiannual Report
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, FEBRUARY 29, 2008 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT a VALUE
----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM INVESTMENTS (CONTINUED)
MALAYSIA 0.7%
Government of Malaysia,
7.60%, 3/15/08 ................................................................ 1,540,000 MYR $ 482,681
3.562%, 7/15/08 ............................................................... 7,435,000 MYR 2,328,396
g Malaysia Treasury Bills, 5/15/08 - 6/17/08 ...................................... 20,670,000 MYR 6,418,093
---------------
9,229,170
---------------
NORWAY 0.2%
g Norway Treasury Bills, 6/18/08 - 9/17/08 ........................................ 10,680,000 NOK 1,996,058
---------------
TOTAL FOREIGN GOVERNMENT SECURITIES (COST $65,497,033) .......................... 67,403,044
---------------
TOTAL INVESTMENTS BEFORE MONEY MARKET FUND (COST $1,069,621,129) ................ 1,177,366,160
---------------
---------------
SHARES
---------------
MONEY MARKET FUND (COST $30,083,920) 2.5%
UNITED STATES 2.5%
n Franklin Institutional Fiduciary Trust Money Market Portfolio, 3.13% ............ 30,083,920 30,083,920
---------------
TOTAL INVESTMENTS (COST $1,099,705,049) 98.8% ................................... 1,207,450,080
NET UNREALIZED GAIN ON FORWARD EXCHANGE CONTRACTS 1.6% .......................... 19,664,305
OTHER ASSETS, LESS LIABILITIES (0.4)% ........................................... (4,589,533)
---------------
NET ASSETS 100.0% ............................................................... $ 1,222,524,852
===============
CURRENCY ABBREVIATIONS
AUD - Australian Dollar
BRL - Brazilian Real
CAD - Canadian Dollar
CHF - Swiss Franc
EGP - Egyptian Pound
EUR - Euro
IDR - Indonesian Rupiah
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
SELECTED PORTFOLIO ABBREVIATIONS
FNMA - Federal National Mortgage Association
FRN - Floating Rate Note
Semiannual Report | 13
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, FEBRUARY 29, 2008 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
a The principal amount is stated in U.S. dollars unless otherwise indicated.
b The principal amount is stated in original face, and scheduled paydowns are
reflected in the market price on ex-date.
c The coupon rate shown represents the rate at period end.
d A portion or all of the security purchased on a when-issued or delayed
delivery basis. See Note 1(c).
e Principal amount is stated in 1,000 Brazilian Real Units.
f Redemption price at maturity is adjusted for inflation. See Note 1(g).
g The security is traded on a discount basis with no stated coupon rate.
h 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 Trust's Board of Trustees.
At February 29, 2008, the aggregate value of these securities was $15,895,771,
representing 1.30% of net assets.
i Principal amount is stated in 100 Mexican Peso Units.
j A supranational organization is an entity formed by two or more central
governments through international treaties.
k See Note 1(e) regarding options.
l Rounds to less than 0.1% of net assets.
m Non-income producing for the twelve months ended February 29, 2008.
n See Note 7 regarding investments in the Franklin Institutional Fiduciary Trust
Money Market Portfolio. The rate shown is the annualized seven-day yield at
period end.
14 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report
Templeton Global Income Fund
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
February 29, 2008 (unaudited)
Assets:
Investments in securities:
Cost - Unaffiliated issuers ............................................................... $ 1,069,621,129
Cost - Sweep Money Fund (Note 7) .......................................................... 30,083,920
---------------
Total cost of investments ................................................................. $ 1,099,705,049
===============
Value - Unaffiliated Issuers .............................................................. 1,177,366,160
Value - Sweep Money Fund (Note 7) ......................................................... 30,083,920
---------------
Total value of investments ................................................................ 1,207,450,080
Foreign currency, at value (cost $7,501,200) ................................................ 7,524,478
Receivables:
Investment securities sold ................................................................ 433,969
Capital shares issued ..................................................................... 694,156
Dividends and interest .................................................................... 20,143,520
Unrealized gain on forward exchange contracts (Note 8) ....................................... 26,459,988
---------------
Total assets ........................................................................... 1,262,706,191
---------------
Liabilities:
Payables:
Investment securities purchased ........................................................... 32,257,552
Affiliates ................................................................................ 585,575
Funds advanced by custodian .................................................................. 37,256
Unrealized loss on forward exchange contracts (Note 8) ....................................... 6,795,683
Accrued expenses and other liabilities ....................................................... 505,273
---------------
Total liabilities ...................................................................... 40,181,339
---------------
Net assets, at value ................................................................ $ 1,222,524,852
===============
Net assets consist of:
Paid-in capital .............................................................................. $ 1,084,511,942
Distributions in excess of net investment income ............................................. (26,338,264)
Net unrealized appreciation (depreciation) ................................................... 126,967,572
Accumulated net realized gain (loss) ......................................................... 37,383,602
===============
Net assets, at value ................................................................ $ 1,222,524,852
===============
Shares outstanding ........................................................................... 130,952,701
===============
Net asset value per share .................................................................... $ 9.34
===============
Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 15
Templeton Global Income Fund
FINANCIAL STATEMENTS (CONTINUED)
STATEMENT OF OPERATIONS
for the six months ended February 29, 2008 (unaudited)
Investment income:
Dividends - Sweep Money Fund (Note 7) ........................................................ $ 673,013
Interest (net of foreign taxes of $1,005,506) ................................................ 31,849,668
---------------
Total investment income ................................................................ 32,522,681
---------------
Expenses:
Management fees (Note 3a) .................................................................... 2,967,999
Administrative fees (Note 3b) ................................................................ 735,003
Transfer agent fees .......................................................................... 139,985
Custodian fees (Note 4) ...................................................................... 449,010
Reports to shareholders ...................................................................... 67,567
Registration and filing fees ................................................................. 60,294
Professional fees ............................................................................ 35,066
Directors' fees and expenses ................................................................. 45,688
Other ........................................................................................ 10,907
---------------
Total expenses ......................................................................... 4,511,519
Expense reductions (Note 4) ............................................................ (16,919)
---------------
Net expenses ........................................................................ 4,494,600
---------------
Net investment income ............................................................ 28,028,081
---------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ............................................................................... 55,060,044
Foreign currency transactions ............................................................. 8,143,378
---------------
Net realized gain (loss) ............................................................ 63,203,422
---------------
Net change in unrealized appreciation (depreciation) on:
Investments ............................................................................... 51,094,159
Translation of assets and liabilities denominated in foreign currencies ................... 15,563,177
---------------
Net change in unrealized appreciation (depreciation) ................................ 66,657,336
---------------
Net realized and unrealized gain (loss) ......................................................... 129,860,758
---------------
Net increase (decrease) in net assets resulting from operations ................................. $ 157,888,839
===============
16 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report
Templeton Global Income Fund
FINANCIAL STATEMENTS (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS
------------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2008 YEAR ENDED
(UNAUDITED) AUGUST 31, 2007
------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income ................................................................. $ 28,028,081 $ 52,159,912
Net realized gain (loss) from investments and foreign currency transactions ........... 63,203,422 86,430,721
Net change in unrealized appreciation (depreciation) on investments and translation
of assets and liabilities denominated in foreign currencies ........................ 66,657,336 (19,770,670)
------------------------------------
Net increase (decrease) in net assets resulting from operations ................. 157,888,839 118,819,963
------------------------------------
Distributions to shareholders from net investment income and net realized foreign
currency gains ........................................................................ (107,158,120) (117,111,037)
Capital share transactions: (Note 2) ..................................................... 1,380,393 6,855,066
------------------------------------
Net increase (decrease) in net assets ........................................... 52,111,112 8,563,992
Net assets:
Beginning of period ...................................................................... 1,170,413,740 1,161,849,748
------------------------------------
End of period ............................................................................ $ 1,222,524,852 $ 1,170,413,740
------------------------------------
Undistributed net investment income (distributions in excess of net investment income)
included in net assets:
End of period ............................................................................ $ (26,338,264) $ 52,791,775
====================================
Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 17
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Templeton Global Income Fund (Fund) is registered under the Investment Company
Act of 1940, as amended, (1940 Act) as a non-diversified, closed-end investment
company.
The following summarizes the Fund's significant accounting policies.
A. 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 and maturity date, option adjusted
spread models, prepayment projections, 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.
18 | Semiannual Report
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. FOREIGN CURRENCY TRANSLATION
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against U.S. dollars on the date of valuation. Purchases and sales of
securities, income and expense items denominated in foreign currencies are
translated into U.S. dollars at the exchange rate in effect on the transaction
date. Occasionally, events may impact the availability or reliability of foreign
exchange rates used to convert the U.S. dollar equivalent value. If such an
event occurs, the foreign exchange rate will be valued at fair value using
procedures established and approved by the Fund's Board of Trustees.
The Fund does not separately report the effect of changes in foreign exchange
rates from changes in market prices on securities held. Such changes are
included in net realized and unrealized gain or loss from investments on the
Statement of Operations.
Realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the recorded amounts
of dividends, interest, and foreign withholding taxes and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in foreign exchange rates on
foreign denominated assets and liabilities other than investments in securities
held at the end of the reporting period.
C. SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS
The Fund may purchase securities on a when-issued or delayed delivery basis,
with payment and delivery scheduled for a future date. These transactions are
subject to market fluctuations and are subject to the risk that the value at
delivery may be more or less than the trade date purchase price. Although the
Fund will generally purchase these securities with the intention of holding the
securities, it may sell the securities before the settlement date. Sufficient
assets have been segregated for these securities.
D. FOREIGN CURRENCY CONTRACTS
When the Fund purchases or sells foreign securities it may enter into foreign
exchange contracts to minimize foreign exchange risk from the trade date to the
settlement date of the transactions. A foreign exchange contract is an agreement
between two parties to exchange different currencies at an agreed upon exchange
rate at a future date. Realized and unrealized gains and losses on these
contracts are included in the Statement of Operations.
The Fund may also enter into forward exchange contracts to hedge against
fluctuations in foreign exchange rates or to gain exposure to certain foreign
currencies. These contracts are valued daily by the Fund and the unrealized
gains or losses on the contracts, as measured by the difference between the
contractual forward foreign exchange rates and the forward rates at the
reporting date, are included in the Statement of Assets and Liabilities.
Realized and unrealized gains and losses on these contracts are included in the
Statement of Operations.
Semiannual Report | 19
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. FOREIGN CURRENCY CONTRACTS (CONTINUED)
The risks of these contracts include movement in the values of the foreign
currencies relative to the U.S. dollar and the possible inability of the
counterparties to fulfill their obligations under the contracts, which may be in
excess of the amount reflected in the Statement of Assets and Liabilities.
E. OPTIONS
The Fund may purchase or write options. Options are contracts entitling the
holder to purchase or sell securities, currencies, or other financial
instruments at a specified price or for a fixed currency amount. Options
purchased are recorded as investments; options written (sold) are recorded as
liabilities. Upon closing of an option, other than by exercise, which results in
a cash settlement, the difference between the premium (original option value)
and the settlement proceeds is realized as a gain or loss. When securities are
acquired or delivered upon exercise of an option, the acquisition cost or sale
proceeds are adjusted by the amount of the premium. When an option expires, the
premium is realized as a gain for options written or as a loss for options
purchased. The risks include the possibility there may be an illiquid options
market or the inability of the counterparties to fulfill their obligations under
the contract. Writing options involves, to varying degrees, elements of market
risk in excess of the amount recognized in the Statement of Assets and
Liabilities.
F. 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.
Foreign securities held by the Fund may be subject to foreign taxation on
interest income received. Foreign taxes, if any, are recorded based on the tax
regulations and rates that exist in the foreign markets in which the Fund
invests.
G. 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. Distributions to shareholders are recorded on the ex-dividend date and
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
20 | Semiannual Report
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
(CONTINUED)
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.
Inflation-indexed bonds provide an inflation hedge through periodic increases in
the security's interest accruals and principal redemption value, by amounts
corresponding to the current rate of inflation. Any such adjustments, including
adjustments to principal redemption value, are recorded as interest income.
H. 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.
I. GUARANTEES AND INDEMNIFICATIONS
Under the Fund's organizational documents, its officers and directors are
indemnified by the Fund against certain liabilities arising out of the
performance of their duties to the Fund. Additionally, in the normal course of
business, the Fund enters into contracts with service providers that contain
general indemnification clauses. The Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Fund that have not yet occurred. Currently, the Fund expects the
risk of loss to be remote.
2. SHARES OF BENEFICIAL INTEREST
At February 29, 2008, there were an unlimited number of shares authorized
(without par value). Transactions in the Fund's shares were as follows:
-------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2008 AUGUST 31, 2007
-------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------
Shares issued for reinvestment of
distributions ......................... 147,761 $1,380,393 759,079 $6,855,066
The Fund's Board of Trustees previously authorized an open-market share
repurchase program pursuant to which the Fund may purchase, from time to time,
Fund shares in open-market transactions, at the discretion of management. This
authorization remains in effect. Through February 29, 2008, the Fund had
repurchased a total of 11,210,400 shares. During the periods ended August 31,
2007 and February 29, 2008, there were no shares repurchased.
Semiannual Report | 21
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 Fund are also officers and/or directors of the following
subsidiaries:
--------------------------------------------------------------------------------
SUBSIDIARY AFFILIATION
--------------------------------------------------------------------------------
Franklin Advisers, Inc. (Advisers) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
A. MANAGEMENT FEES
The Fund pays an investment management fee to Advisers based on the average
daily net assets of the Fund as follows:
--------------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
--------------------------------------------------------------------------------
0.550% Up to and including $200 million
0.500% Over $200 million, up to and including $1 billion
0.480% Over $1 billion, up to and including $5 billion
0.460% Over $5 billion, up to and including $10 billion
0.440% Over $10 billion, up to and including $15 billion
0.420% Over $15 billion, up to and including $20 billion
0.400% In excess of $20 billion
B. ADMINISTRATIVE FEES
The Fund pays an administrative fee to FT Services based on the average daily
net assets of the Fund as follows:
--------------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
--------------------------------------------------------------------------------
0.150% Up to and including $200 million
0.135% Over $200 million, up to and including $700 million
0.100% In excess of $700 million
4. EXPENSE OFFSET ARRANGEMENT
The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the period ended February 29, 2008, the
custodian fees were reduced as noted in the Statement of Operations.
22 | Semiannual Report
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
5. INCOME TAXES
For tax purposes, capital losses may be carried over to offset future capital
gains, if any. At August 31, 2007, the capital loss carryforwards were as
follows:
Capital loss carryforwards expiring in:
2010 ..................................................... $ 20,180,785
2011 ..................................................... 4,209,282
---------------
$ 24,390,067
===============
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 August 31, 2007, the Fund deferred realized capital losses of
$1,352,485.
At February 29, 2008, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments ......................................... $ 1,105,778,865
===============
Unrealized appreciation ..................................... $ 103,422,246
Unrealized depreciation ..................................... (1,751,031)
---------------
Net unrealized appreciation (depreciation) .................. $ 101,671,215
===============
Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions, and bond discounts
and premiums.
Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales, foreign currency
transactions, and bond discounts and premiums.
6. INVESTMENT TRANSACTIONS
Purchases and sales of investments (excluding short term securities) for the
period ended February 29, 2008, aggregated $478,522,964 and $448,716,651,
respectively.
7. INVESTMENTS IN FRANKLIN INSTITUTIONAL FIDUCIARY TRUST MONEY MARKET PORTFOLIO
The Fund may invest in the Franklin Institutional Fiduciary Trust Money Market
Portfolio (Sweep Money Fund), an open-end investment company managed by
Advisers. Management fees paid by the Fund are reduced on assets invested in the
Sweep Money Fund, in an amount not to exceed the management and administrative
fees paid by the Sweep Money Fund.
Semiannual Report | 23
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
8. FORWARD EXCHANGE CONTRACTS
At February 29, 2008, the Fund had the following forward exchange contracts
outstanding:
----------------------------------------------------------
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN LOSS
----------------------------------------------------------
CONTRACTS TO BUY
190,000,000 New Zealand Dollar .... 36,380,835 3/07/08 $ 28,721 $ --
345,000,000 Japanese Yen .......... 2,925,960 6/30/08 417,040 --
1,350,000,000 Japanese Yen .......... 11,589,475 7/18/08 1,502,094 --
647,291,600 Japanese Yen .......... 5,800,000 8/20/08 486,126 --
321,024,200 Japanese Yen .......... 2,900,000 8/25/08 218,284 --
223,340,000 Japanese Yen .......... 2,010,261 9/04/08 160,051 --
225,000,000 Indian Rupee .......... 7,816,843 NZD 9/24/08 -- (399,285)
538,227,400 Japanese Yen .......... 4,880,000 9/25/08 354,666 --
803,615,400 Japanese Yen .......... 7,245,000 9/26/08 571,079 --
779,666,250 Kazakhstani Tenge ..... 6,150,000 10/10/08 16,316 --
314,875,000 Chilean Peso .......... 625,000 10/20/08 57,804 --
141,373,750 Chilean Peso .......... 280,000 10/22/08 26,577 --
252,100,000 Chilean Peso .......... 500,000 10/23/08 46,701 --
3,571,898 Swiss Franc ........... 3,100,000 10/27/08 330,070 --
412,800,000 Kazakhstani Tenge ..... 3,225,000 11/03/08 22,575 --
1,730,664,000 Japanese Yen .......... 15,600,000 11/04/08 1,259,191 --
10,600,000 Swiss Franc ........... 9,591,241 11/06/08 587,393 --
1,950,000,000 Japanese Yen .......... 17,934,333 11/13/08 1,068,416 --
1,508,082,050 Japanese Yen .......... 14,224,505 11/14/08 472,347 --
4,318,461,667 Japanese Yen .......... 40,427,464 12/02/08 1,688,149 --
5,170,000 Euro .................. 19,103,150 RON 12/03/08 422,698 --
4,310,000 Euro .................. 15,630,215 RON 12/04/08 466,623 --
543,250,000 Japanese Yen .......... 5,082,708 12/05/08 215,951 --
1,664,019,000 Kazakhstani Tenge ..... 12,810,000 12/22/08 133,772 --
1,056,356,000 Kazakhstani Tenge ..... 8,236,694 1/16/09 -- (68,677)
1,946,000,000 Kazakhstani Tenge ..... 15,203,125 1/20/09 -- (170,487)
128,800,000 Japanese Yen .......... 1,234,284 1/22/09 24,403 --
3,024,013 Peruvian Nuevo Sol .... 11,778,504 MXN 1/22/09 6,253 --
47,978,579 Malaysian Ringgit ..... 14,941,943 1/23/09 -- (11,392)
28,641,145 Singapore Dollar ...... 20,469,658 1/23/09 269,008 --
9,301,302 Australian Dollar ..... 7,905,177 1/30/09 334,960 --
89,650,000 Swedish Krona ......... 13,858,616 1/30/09 432,032 --
832,775,000 Indian Rupee .......... 26,988,728 NZD 2/27/09 501,037 --
24 | Semiannual Report
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
8. FORWARD EXCHANGE CONTRACTS (CONTINUED)
----------------------------------------------------------
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN LOSS
----------------------------------------------------------
CONTRACTS TO SELL
16,563,648 New Zealand Dollar .... 527,883,468 INR 4/28/08 $ 136,387 $ --
52,217,395 Mexican Peso .......... 2,423,304,878 CLP 5/16/08 466,276 --
36,225,716 Mexican Peso .......... 1,661,717,052 CLP 5/20/08 281,002 --
50,000,000 Mexican Peso .......... 188,725,000 INR 5/21/08 108,186 --
70,037,979 Mexican Peso .......... 760,290,277 KZT 5/27/08 -- (275,972)
60,216,771 Mexican Peso .......... 652,292,150 KZT 5/29/08 -- (249,363)
29,507,162 Mexican Peso .......... 1,353,641,068 CLP 6/12/08 230,642 --
25,000,000 Mexican Peso .......... 2,245,677 7/28/08 -- (46,180)
11,063,812 Mexican Peso .......... 503,071,544 CLP 9/15/08 82,334 --
67,519,638 Mexican Peso .......... 3,085,053,304 CLP 10/01/08 548,638 --
67,232,921 Mexican Peso .......... 3,061,511,579 CLP 10/02/08 524,530 --
3,844,304,900 South Korean Won ...... 4,665,135 CHF 11/13/08 396,161 --
5,536,655,000 South Korean Won ...... 6,832,087 CHF 11/17/08 679,473 --
29,900,000 Romanian Leu-New ...... 66,311,821 NOK 11/17/08 907,292 --
23,799,300,000 South Korean Won ...... 28,063,107 CHF 11/25/08 1,669,502 --
4,455,360,000 South Korean Won ...... 5,302,801 CHF 11/26/08 359,839 --
11,930,418,000 South Korean Won ...... 14,207,831 CHF 11/28/08 971,552 --
4,542,277,200 South Korean Won ...... 5,492,675 CHF 12/02/08 450,009 --
14,416,140,000 South Korean Won ...... 17,258,431 CHF 12/03/08 1,261,199 --
2,470,410 Euro .................. 387,701,205 JPY 12/08/08 75,347 --
22,879,675 Romanian Leu-New ...... 59,057,475 SEK 12/15/08 669,226 --
55,441,133 Mexican Peso .......... 4,854,953 1/22/09 -- (114,466)
30,997,821 Mexican Peso .......... 107,782,523 INR 1/22/09 -- (89,837)
6,992,355 Euro .................. 10,194,504 1/28/09 -- (279,627)
9,788,453 Euro .................. 14,264,563 1/29/09 -- (397,485)
26,940,885,209 South Korean Won ...... 28,307,277 1/30/09 -- (287,916)
3,964,380,685 South Korean Won ...... 4,513,338 CHF 1/30/09 124,902 --
2,795,469 Euro .................. 4,099,835 2/04/09 -- (86,670)
65,715,289 Mexican Peso .......... 5,801,650 2/06/09 -- (77,275)
32,149,105 Mexican Peso .......... 2,841,156 2/09/09 -- (33,805)
25,511,568 Romanian Leu-New ...... 168,025,426 CZK 2/12/09 349,473 --
9,325,755 Romanian Leu-New ...... 61,718,779 CZK 2/17/09 147,898 --
4,433,751 Euro .................. 6,404,776 2/19/09 -- (232,028)
31,225,928 Euro .................. 45,388,109 2/23/09 -- (1,347,427)
31,225,928 Euro .................. 4,803,984,119 JPY 2/23/09 271,329 --
10,408,643 Euro .................. 15,212,232 2/25/09 -- (365,280)
4,213,560,000 South Korean Won ...... 4,440,000 2/25/09 -- (31,252)
20,817,285 Euro .................. 3,205,789,029 JPY 2/25/09 216,063 --
20,817,286 Euro .................. 30,435,288 2/26/09 -- (718,736)
10,408,643 Euro .................. 1,596,342,351 JPY 2/26/09 45,041 --
67,656,178 Euro .................. 99,795,984 2/27/09 -- (1,451,344)
4,206,056,400 South Korean Won ...... 4,440,000 2/27/09 -- (23,210)
65,279,583 Mexican Peso .......... 5,801,598 2/27/09 -- (22,556)
46,838,891 Euro .................. 7,282,833,439 JPY 2/27/09 1,179,496 --
6,663,669 Romanian Leu-New ...... 43,173,911 CZK 2/27/09 53,879 --
Semiannual Report | 25
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
8. FORWARD EXCHANGE CONTRACTS (CONTINUED)
-----------------------------------------------------------
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN LOSS
-----------------------------------------------------------
CONTRACTS TO SELL (CONTINUED)
65,781,104 Mexican Peso .......... 5,857,884 3/03/09 $ -- $ (7,994)
10,408,642 Euro .................. 15,602,138 3/03/09 27,627 --
15,612,962 Euro .................. 23,355,848 3/04/09 -- (7,419)
4,183,368,000 South Korean Won ...... 4,440,000 3/04/09 945 --
UNREALIZED GAIN (LOSS) ON OFFSETTING FORWARD EXCHANGE CONTRACTS ......... 2,105,403 --
--------------------------
UNREALIZED GAIN (LOSS) ON FORWARD EXCHANGE CONTRACTS .................... $26,459,988 $(6,795,683)
--------------------------
NET UNREALIZED GAIN (LOSS) ON FORWARD EXCHANGE CONTRACTS ............. $19,664,305
===========
a In U.S. Dollar unless otherwise indicated.
CURRENCY ABBREVIATIONS
CHF - Swiss Franc
CLP - Chilean Peso
COP - Colombian Peso
CZK - Czech Koruna
INR - Indian Rupee
JPY - Japanese Yen
KRW - South Korean Won
KZT - Kazakhstani Tenge
MXN - Mexican Peso
NOK - Norwegian Krone
NZD - New Zealand Dollar
RON - Romanian Leu-New
SEK - Swedish Krona
9. CREDIT RISK
The Fund has 19.26% of its portfolio invested in below investment grade and
comparable quality unrated high yield securities, which tend to be more
sensitive to economic conditions than higher rated securities. The risk of loss
due to default by the issuer may be significantly greater for the holders of
high yielding securities because such securities are generally unsecured and are
often subordinated to other creditors of the issuer.
10. CONCENTRATION OF RISK
Investing in foreign securities may include certain risks and considerations not
typically associated with investing in U.S. securities, such as fluctuating
currency values and changing local and regional economic, political and social
conditions, which may result in greater market volatility. In addition, certain
foreign securities may not be as liquid as U.S. securities.
26 | Semiannual Report
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
11. 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 Funds, it is
committed to making the Funds or their shareholders whole, as appropriate.
12. 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 February 29, 2008. 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 August 31, 2007 and has
determined that the implementation of FIN 48 did not have a material impact on
the Fund's financial statements.
Semiannual Report | 27
Templeton Global Income Fund
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
12. NEW ACCOUNTING PRONOUNCEMENTS (CONTINUED)
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.
In March 2008, FASB issued FASB Statement No. 161, "Disclosures about Derivative
Instruments and Hedging Activities, an amendment of FASB Statement No. 133"
(SFAS 161), which expands disclosures about derivative investments and hedging
activities. SFAS 161 is effective for fiscal years beginning after November 15,
2008, and interim periods within those fiscal years. The Fund is currently
evaluating the impact, if any, of applying the various provisions of SFAS 161.
28 | Semiannual Report
Templeton Global Income Fund
ANNUAL MEETING OF SHAREHOLDERS, FEBRUARY 22, 2008
The Annual Meeting of Shareholders of the Fund was held at the Fund's offices,
500 E. Broward Blvd., Fort Lauderdale, Florida, on February 22, 2008. The
purpose of the meeting was to elect four Trustees of the Fund. At the meeting,
the following persons were elected by the shareholders to serve as Trustees of
the Fund: Ann Torre Bates, Edith E. Holiday, Frank A. Olson and Constantine D.
Tseretopoulos.* No other business was transacted at the meeting.
The results of the voting at the Annual Meeting are as follows:
The election of four Trustees:
-----------------------------------------------------------------------------------------------
% OF % OF
SHARES SHARES
% OF PRESENT % OF PRESENT
OUTSTANDING AND OUTSTANDING AND
TERM EXPIRING 2011 FOR SHARES VOTING WITHHELD SHARES VOTING
-----------------------------------------------------------------------------------------------
Edith E. Holiday .... 109,538,943 83.70% 98.09% 2,136,742 1.63% 1.91%
Frank A. Olson ...... 109,421,633 83.61% 97.98% 2,254,052 1.72% 2.02%
Constantine D.
Tseretopoulos .... 109,378,721 83.57% 97.94% 2,296,964 1.76% 2.06%
-----------------------------------------------------------------------------------------------
TERM EXPIRING 2009
-----------------------------------------------------------------------------------------------
Ann Torre Bates ..... 109,569,992 83.72% 98.11% 2,105,693 1.61% 1.89%
* Harris J. Ashton, Frank J. Crothers, Charles B. Johnson, Gregory E. Johnson,
David W. Niemiec, Larry D. Thompson and Robert E. Wade are Trustees of the Fund
who are currently serving and whose terms of office continued after the Annual
Meeting of Shareholders.
Semiannual Report | 29
Templeton Global Income Fund
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
The Fund offers a Dividend Reinvestment and Cash Purchase Plan (the "Plan") with
the following features:
Shareholders must affirmatively elect to participate in the Plan; share
dividends and capital gains distributions will be reinvested automatically; BNY
Mellon Shareowner Services, P.O. Box 358035, Pittsburgh, PA, 15252-8035, will
provide additional Plan information upon request.
Whenever the Fund declares dividends in either cash or shares of the Fund, if
the market price is equal to or exceeds net asset value at the valuation date,
the participant will receive the dividends entirely in shares at a price equal
to the net asset value, but not less than 95% of the then current market price
of the Fund's shares. If the market price is lower than net asset value or if
dividends and/or capital gains distributions are payable only in cash, the
participant will receive shares purchased on NYSE Euronext (formerly the New
York Stock Exchange) or otherwise on the open market.
A participant has the option of submitting additional cash payments to the Plan
Administrator, in any amounts of at least $100, up to a maximum of $5,000 per
month, for the purchase of Fund shares for his or her account. These payments
shall be made by check or money order payable to "Mellon Bank, N.A." and sent to
BNY Mellon Shareowner Services, P.O. Box 382009, Pittsburgh, PA, 15252-8009,
Attention: Templeton Global Income Fund. The Plan Administrator shall apply such
payments (less a $5.00 service charge and less a pro rata share of trading fees)
to purchases of Fund shares on the open market.
The automatic reinvestment of dividends and/or capital gains does not relieve
the participant of any income tax that may be payable on dividends or
distributions.
Whenever shares are purchased on NYSE Euronext or otherwise on the open market,
each participant will pay a pro rata portion of trading fees. Trading fees will
be deducted from amounts to be invested. The Plan Administrator's fee for a sale
of shares through the Plan are $15.00 per transaction plus a $0.12 per share
trading fee.
A participant may withdraw from the Plan without penalty at any time by written
notice to the Plan Administrator sent to BNY Mellon Shareowner Services, P.O.
Box 358035, Pittsburgh, PA 15252-8035. Upon withdrawal, the participant will
receive, without charge, share certificates issued in the participant's name for
all full shares held by the Plan Administrator; or, if the participant wishes,
the Plan Administrator will sell the shares and send the proceeds to the
participant, less a service charge of $15.00 and less trading fees of $0.12 per
share.
30 | Semiannual Report
Templeton Global Income Fund
TRANSFER AGENT
BNY Mellon Shareowner Services
P.O. Box 358015
Pittsburgh, PA 15252-8015
1-800-416-5585
www.bnymellon.com
DIRECT REGISTRATION
If you are a registered shareholder of the Fund, purchases of shares of the Fund
can be electronically credited to your Fund account at BNY Mellon Shareowner
Services through Direct Registration. This service provides shareholders with a
convenient way to keep track of shares through book-entry transactions, to
electronically move book-entry shares between broker-dealers, transfer agents
and DRS eligible issuers, and eliminates the possibility of lost certificates.
For additional information, please contact BNY Mellon Shareowner Services at
1-800-416-5585.
SHAREHOLDER INFORMATION
Shares of Templeton Global Income Fund are traded on NYSE Euronext under the
symbol "GIM." Information about the net asset value and the market price is
published each Monday in the Wall Street Journal, weekly in Barron's and each
Saturday in The New York Times and other newspapers. Daily market prices for the
Fund's shares are published in the "NYSE Euronext Composite Transactions"
section of newspapers.
For current information about distributions and shareholder accounts, call
1-800-416-5585. Registered shareholders can access their Fund account on-line
with Investor ServiceDirect(R). For information go to BNY Mellon Shareowner
Services' web site at https://vault.bnymellon.com/isd and follow the
instructions.
The daily closing net asset value as of the previous business day may be
obtained when available by calling Franklin Templeton Fund Information after 7
a.m. Pacific time any business day at 1-800/DIAL BEN(R) (1-800/342-5236). The
Fund's net asset value and dividends are also listed on the NASDAQ Stock Market,
Inc.'s Mutual Fund Quotation Service ("NASDAQ MFQS").
Shareholders not receiving copies of reports to shareholders because their
shares are registered in the name of a broker or a custodian can request that
they be added to the Fund's mailing list by writing Templeton Global Income
Fund, 100 Fountain Parkway, P.O. Box 33030, St. Petersburg, FL 33733-8030.
Semiannual Report | 31
TEMPLETON GLOBAL INCOME FUND
SHAREHOLDER INFORMATION
PROXY VOTING POLICIES AND PROCEDURES
The Fund has established Proxy Voting Policies and Procedures (Policies) that
the Fund uses to determine how to vote proxies relating to portfolio securities.
Shareholders may view the Fund'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 Fund'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 Fund 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.
CERTIFICATIONS
The Fund's Chief Executive Officer - Finance and Administration is required by
the New York Stock Exchange's Listing Standards to file annually with the
Exchange a certification that he is not aware of any violation by the Fund of
the Exchange's Corporate Governance Standards applicable to the Fund. The Fund
has filed such certification.
In addition, the Fund's Chief Executive Officer - Finance and Administration and
Chief Financial Officer and Chief Accounting Officer are required by the rules
of the U.S. Securities and Exchange Commission to provide certain certifications
with respect to the Fund's Form N-CSR and Form N-CSRS (which include the Fund's
annual and semiannual reports to shareholders) that are filed semiannually with
the Commission. The Fund has filed such certifications with its Form N-CSR for
the year ended August 31, 2007. Additionally, the Fund expects to file, on or
about April 30, 2008, such certifications with its Form N-CSRS for the six
months ended February 29, 2008.
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
Franklin India Growth Fund
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 3
Franklin Small-Mid Cap Growth Fund
VALUE
Franklin All Cap Value Fund
Franklin Balance Sheet Investment Fund
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. Effective 3/31/08, Franklin Small Cap Growth Fund II changed its name to
Franklin Small Cap Growth Fund. The fund's investment goal and strategy remained
the same.
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.
04/08 Not part of the semiannual report
[LOGO](R) 100 Fountain Parkway
FRANKLIN TEMPLETON P.O. Box 33030
INVESTMENTS St. Petersburg, FL 33733-8030
SEMIANNUAL REPORT
TEMPLETON GLOBAL
INCOME FUND
INVESTMENT MANAGER
Franklin Advisers, Inc.
TRANSFER AGENT
BNY Mellon Shareowner Services
P.O. Box 358015
Pittsburgh, PA 15252-8015
Toll free number: 1-800/416-5585
Hearing Impaired phone number: 1-800/231-5469
Foreign Shareholders phone number: 201/680-6578
www.melloninvestor.com/isd
FUND INFORMATION
1-800/342-5236
Investors should be aware that the value of investments made for the Fund may go
down as well as up. Like any investment in securities, the value of the Fund's
portfolio will be subject to the risk of loss from market, currency, economic,
political and other factors. The Fund and its investors are not protected from
such losses by the investment manager. Therefore, investors who cannot accept
this risk should not invest in shares of the Fund.
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.
TLGIM S2008 04/08
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 David W. Niemiec 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
Members of the Audit Committee are: Frank J. Crothers, David W. Niemiec, Ann
Torre Bates and Constantine D. Tseretopoulos.
ITEM 6. SCHEDULE OF INVESTMENTS. N/A
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The board of trustees of the Fund has delegated the authority to vote proxies
related to the portfolio securities held by the Fund to the Fund's manager
Franklin Advisers, Inc. in accordance with the Proxy Voting Policies and
Procedures (Policies) adopted by the manager.
The manager has delegated its administrative duties with respect to the voting
of proxies to the Proxy Group within Franklin Templeton Companies, LLC (Proxy
Group), an affiliate and wholly owned subsidiary of Franklin Resources, Inc. All
proxies received by the Proxy Group will be voted based upon the manager's
instructions and/or policies.
To assist it in analyzing proxies, the manager subscribes to RiskMetrics Group
(RiskMetrics), an unaffiliated third party corporate governance research service
that provides in-depth analyses of shareholder meeting agendas, vote
recommendations, recordkeeping and vote disclosure services. In addition, the
manager subscribes to Glass, Lewis & Co., LLC (Glass Lewis), an unaffiliated
third party analytical research firm, to receive analyses and vote
recommendations on the shareholder meetings of publicly held U.S. companies.
Although RiskMetrics' and/or Glass Lewis' analyses are thoroughly reviewed and
considered in making a final voting decision, the manager does not consider
recommendations from RiskMetrics, Glass Lewis or any other third party to be
determinative of the manager's ultimate decision. The manager votes proxies
solely in the interests of the Fund and its shareholders. As a matter of policy,
the officers, directors/trustees and employees of the Fund, the manager and the
Proxy Group will not be influenced by outside sources whose interests conflict
with the interests of the Fund and its shareholders. Efforts are made to resolve
all conflicts in the interests of the manager's clients. Material conflicts of
interest are identified by the Proxy Group based upon analyses of client, broker
and vendor lists, information periodically gathered from directors and officers,
and information derived from other sources, including public filings. In
situations where a material conflict of interest is identified, the Proxy Group
may defer to the voting recommendation of RiskMetrics, Glass Lewis or those of
another independent third party provider of proxy services; or send the proxy
directly to the Fund with a recommendation regarding the vote for approval. If
the conflict is not resolved by the Fund, the Proxy Group may refer the matter,
along with the recommended course of action by the manager to an
interdepartmental Proxy Review Committee (which may include portfolio managers
and/or research analysts employed by the manager), for evaluation and voting
instructions. The Proxy Review Committee may defer to the voting recommendation
of RiskMetrics, Glass Lewis or those of another independent third party provider
of proxy services; or send the proxy directly to the Fund. Where the Proxy Group
or the Proxy Review Committee refers a matter to the Fund, it may rely upon the
instructions of a representative of the Fund, such as the board of trusteesor a
committee of the board.
Where a material conflict of interest has been identified, but the items on
which the manager's vote recommendations differ from Glass Lewis, RiskMetrics,
or another independent third party provider of proxy services relate
specifically to (1) shareholder proposals regarding social or environmental
issues or political contributions, (2) "Other Business" without describing the
matters that might be considered, or (3) items the manager wishes to vote in
opposition to the recommendations of an issuer's management, the Proxy Group may
defer to the vote recommendations of the manager rather than sending the proxy
directly to the Fund for approval.
To avoid certain potential conflicts of interest, the manager will employ echo
voting, if possible, in the following instances: (1) when the Fund invests in an
underlying fund in reliance on Sections 12(d)(1) of the 1940 Act, or pursuant to
an SEC exemptive order; (2) when the Fund invests uninvested cash in affiliated
money market funds pursuant to an SEC exemptive order ("cash sweep
arrangement"); or (3) when required pursuant to the Fund's governing documents
or applicable law. Echo voting means that the Investment Manager will vote the
shares in the same proportion as the vote of all of the other holders of the
fund's shares.
The recommendation of management on any issue is a factor which the manager
considers in determining how proxies should be voted, but is not determinative
of the manager's ultimate decision. As a matter of practice, the votes with
respect to most issues are cast in accordance with the position of the company's
management. Each issue, however, is considered on its own merits, and the
manager will not support the position of the company's management in any
situation where it deems that the ratification of management's position would
adversely affect the investment merits of owning that company's shares.
MANAGER'S PROXY VOTING POLICIES AND PRINCIPLES The manager has adopted general
proxy voting guidelines, which are summarized below. These guidelines are not an
exhaustive list of all the issues that may arise and the manager cannot
anticipate all future situations. In all cases, each proxy will be considered
based on the relevant facts and circumstances.
BOARD OF DIRECTORS. The manager supports an independent board of directors, and
prefers that key committees such as audit, nominating, and compensation
committees be comprised of independent directors. The manager will generally
vote against management efforts to classify a board and will generally support
proposals to declassify the board of directors. The manager may withhold votes
from directors who have attended less than 75% of meetings without a valid
reason. While generally in favor of separating Chairman and CEO positions, the
manager will review this issue as well as proposals to restore or provide for
cumulative voting on a case-by-case basis, taking into consideration factors
such as the company's corporate governance guidelines or provisions and
performance.
RATIFICATION OF AUDITORS OF PORTFOLIO COMPANIES. In light of several high
profile accounting scandals, the manager will closely scrutinize the role and
performance of auditors. On a case-by-case basis, the manager will examine
proposals relating to non-audit relationships and non-audit fees. The manager
will also consider, on a case-by-case basis, proposals to rotate auditors, and
will vote against the ratification of auditors when there is clear and
compelling evidence of accounting irregularities or negligence.
MANAGEMENT AND DIRECTOR COMPENSATION. A company's equity-based compensation plan
should be in alignment with its shareholders' long-term interests. The manager
believes that executive compensation should be directly linked to the
performance of the company. The manager evaluates plans on a case-by-case basis
by considering several factors to determine whether the plan is fair and
reasonable, including the RiskMetrics quantitative model utilized to assess such
plans and/or the Glass Lewis evaluation of the plans. The manager will generally
oppose plans that have the potential to be excessively dilutive, and will almost
always oppose plans that are structured to allow the repricing of underwater
options, or plans that have an automatic share replenishment "evergreen"
feature. The manager will generally support employee stock option plans in which
the purchase price is at least 85% of fair market value, and when potential
dilution is 10% or less.
Severance compensation arrangements will be reviewed on a case-by-case basis,
although the manager will generally oppose "golden parachutes" that are
considered to be excessive. The manager will normally support proposals that
require a percentage of directors' compensation to be in the form of common
stock, as it aligns their interests with those of shareholders. The manager will
review on a case-by-case basis any shareholder proposals to adopt policies on
expensing stock option plans.
ANTI-TAKEOVER MECHANISMS AND RELATED ISSUES. The manager generally opposes
anti-takeover measures since they tend to reduce shareholder rights. On
occasion, the manager may vote with management when the research analyst has
concluded that the proposal is not onerous and would not harm the Fund or its
shareholders' interests. The manager generally supports proposals that require
shareholder rights' plans ("poison pills") to be subject to a shareholder vote
and will closely evaluate such plans on a case-by-case basis to determine
whether or not they warrant support. The manager will generally vote against any
proposal to issue stock that has unequal or subordinate voting rights. The
manager generally opposes any supermajority voting requirements as well as the
payment of "greenmail." The manager generally supports "fair price" provisions
and confidential voting.
CHANGES TO CAPITAL STRUCTURE. The manager will review, on a case-by-case basis,
proposals by companies to increase authorized shares and the purpose for the
increase and proposals seeking preemptive rights. The manager will generally not
vote in favor of dual-class capital structures to increase the number of
authorized shares where that class of stock would have superior voting rights.
The manager will generally vote in favor of the issuance of preferred stock in
cases where the company specifies the voting, dividend, conversion and other
rights of such stock and the terms of the preferred stock issuance are deemed
reasonable.
MERGERS AND CORPORATE RESTRUCTURING. Mergers and acquisitions will be subject to
careful review by the research analyst to determine whether each will be
beneficial to shareholders. The manager will analyze various economic and
strategic factors in making the final decision on a merger or acquisition.
Corporate restructuring and reincorporation proposals are also subject to a
thorough examination on a case-by-case basis.
SOCIAL AND CORPORATE POLICY ISSUES. The manager will generally give management
discretion with regard to social, environmental and ethical issues, although the
manager may vote in favor of those that are believed to have significant
economic benefits or implications for the Fund and its shareholders.
GLOBAL CORPORATE GOVERNANCE. Many of the tenets discussed above are applied to
proxy voting decisions for international companies. However, the manager must be
more flexible in these instances and must be mindful of the varied market
practices of each region.
The manager will attempt to process every proxy it receives for all domestic and
foreign issuers. However, there may be situations in which the manager cannot
process proxies, for example, where a meeting notice was received too late, or
sell orders preclude the ability to vote. If a security is on loan, the manager
may determine that it is not in the best interests of the Fund to recall the
security for voting purposes. Also, the manager may abstain from voting under
certain circumstances or vote against items such as "Other Business" when the
manager is not given adequate information from the company.
Shareholders may view the 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 Fund's
proxy voting records are available online at franklintempleton.com and posted on
the SEC website at WWW.SEC.GOV. The proxy voting records are updated each year
by August 31 to reflect the most recent 12-month period ended June 30.
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.
TEMPLETON GLOBAL INCOME FUND
By /s/GALEN G. VETTER
-----------------------------
Galen G. Vetter
Chief Executive Officer -
Finance and Administration
Date: April 28, 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: April 28, 2008
By /s/LAURA F. FERGERSON
-----------------------------
Laura F. Fergerson
Chief Financial Officer and
Chief Accounting Officer
Date: April 28, 2008