FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05459
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TEMPLETON GLOBAL INCOME FUND
(Exact name of registrant as specified in charter)
500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
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(Address of principal executive offices) (Zip code)
CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: 954/527-7500
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Date of fiscal year end: 8/31
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Date of reporting period: 11/30/08
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ITEM 1. SCHEDULE OF INVESTMENTS.
Templeton Global Income Fund
QUARTERLY STATEMENT OF INVESTMENTS
NOVEMBER 30, 2008
CONTENTS
Statement of Investments .................................................... 3
Notes to Statement of Investments ........................................... 8
(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO)
Franklin - TEMPLETON - Mutual Series
Quarterly Statement of Investments | 1
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Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED)
PRINCIPAL AMOUNT(a) VALUE
----------------------- ----------------
BONDS 57.3%
ARGENTINA 2.1%
(b, c) Government of Argentina, senior bond, FRN, 3.127%, 8/03/12 ................ 98,977,000 $ 23,736,356
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AUSTRALIA 6.3%
New South Wales Treasury Corp., senior note, 5.50%, 3/01/17 ............... 36,971,000 AUD 24,804,959
Queensland Treasury Corp.,
13, 6.00%, 8/14/13 ..................................................... 38,901,000 AUD 26,764,340
17, 6.00%, 9/14/17 ..................................................... 12,395,000 AUD 8,604,159
(d) 144A, 7.125%, 9/18/17 .................................................. 16,480,000 NZD 10,101,774
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70,275,232
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BRAZIL 5.0%
Nota Do Tesouro Nacional,
9.762%, 1/01/12 ........................................................ 36,035(e) BRL 13,573,187
9.762%, 1/01/14 ........................................................ 15,000(e) BRL 5,111,047
9.762%, 1/01/17 ........................................................ 54,900(e) BRL 16,694,194
(f) Index Linked, 6.00%, 5/15/15 ........................................... 9,400(e) BRL 6,078,664
(f) Index Linked, 6.00%, 5/15/45 ........................................... 23,625(e) BRL 14,128,012
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55,585,104
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CANADA 1.2%
Province of Manitoba, 6.375%, 9/01/15 ..................................... 14,800,000 NZD 8,246,904
Province of Ontario, 6.25%, 6/16/15 ....................................... 8,460,000 NZD 4,651,868
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12,898,772
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FRANCE 2.8%
Government of France, 4.00%, 4/25/18 ...................................... 23,500,000 EUR 30,696,506
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GERMANY 0.4%
(b) KfW Bankengruppe, FRN, 0.674%, 8/08/11 .................................... 430,000,000 JPY 4,418,332
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HUNGARY 0.4%
Government of Hungary, 5.75%, 6/11/18 ..................................... 4,350,000 EUR 4,696,195
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INDONESIA 6.8%
Government of Indonesia,
11.00%, 10/15/14 ....................................................... 3,500,000,000 IDR 245,218
9.50%, 6/15/15 ......................................................... 34,890,000,000 IDR 2,255,883
10.75%, 5/15/16 ........................................................ 87,035,000,000 IDR 5,754,084
(d) 144A, 6.875%, 1/17/18 .................................................. 1,570,000 1,047,897
FR19, 14.25%, 6/15/13 .................................................. 84,050,000,000 IDR 6,989,607
FR20, 14.275%, 12/15/13 ................................................ 81,836,000,000 IDR 6,805,490
FR31, 11.00%, 11/15/20 ................................................. 335,739,000,000 IDR 21,079,675
FR34, 12.80%, 6/15/21 .................................................. 59,666,000,000 IDR 4,316,793
FR35, 12.90%, 6/15/22 .................................................. 32,530,000,000 IDR 2,367,049
FR36, 11.50%, 9/15/19 .................................................. 23,000,000,000 IDR 1,520,583
FR42, 10.25%, 7/15/27 .................................................. 25,430,000,000 IDR 1,427,465
FR43, 10.25%, 7/15/22 .................................................. 8,450,000,000 IDR 495,406
FR46, 9.50%, 7/15/23 ................................................... 41,250,000,000 IDR 2,246,883
FR47, 10.00%, 2/15/28 .................................................. 52,895,000,000 IDR 2,969,160
FR48, 9.00%, 9/15/18 ................................................... 18,520,000,000 IDR 1,016,483
(g) Reg S, 6.875%, 1/17/18 ................................................. 3,200,000 2,135,840
(g) Reg S, 6.625%, 2/17/37 ................................................. 500,000 278,418
Quarterly Statement of Investments | 3
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT(a) VALUE
----------------------- ----------------
BONDS (CONTINUED)
INDONESIA (CONTINUED)
Government of Indonesia, (continued)
(d) senior bond, 144A, 8.50%, 10/12/35 ..................................... 2,712,000 $ 1,892,162
(d) senior bond, 144A, 6.625%, 2/17/37 ..................................... 1,590,000 885,369
(d) senior bond, 144A, 7.75%, 1/17/38 ...................................... 3,390,000 2,025,525
(g) senior bond, Reg S, 8.50%, 10/12/35 .................................... 5,750,000 4,011,775
(g) senior bond, Reg S, 7.75%, 1/17/38 ..................................... 6,970,000 4,164,575
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75,931,340
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MALAYSIA 1.1%
Government of Malaysia,
3.702%, 2/25/13 ........................................................ 3,370,000 MYR 942,027
3.70%, 5/15/13 ......................................................... 1,290,000 MYR 360,172
3.461%, 7/31/13 ........................................................ 20,100,000 MYR 5,554,953
3.814%, 2/15/17 ........................................................ 19,530,000 MYR 5,410,616
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12,267,768
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MEXICO 3.4%
Government of Mexico,
8.00%, 12/07/23 ........................................................ 2,727,000(h) MXN 18,448,078
M 20, 7.50%, 6/03/27 ................................................... 3,058,000(h) MXN 19,441,469
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37,889,547
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NEW ZEALAND 0.9%
Government of New Zealand, 6.00%, 11/15/11 ................................ 18,273,000 NZD 10,419,236
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PERU 3.0%
Government of Peru,
9.91%, 5/05/15 ......................................................... 6,500,000 PEN 2,322,627
7.84%, 8/12/20 ......................................................... 32,200,000 PEN 10,133,744
Series 7, 8.60%, 8/12/17 ............................................... 61,545,000 PEN 20,821,116
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33,277,487
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PHILIPPINES 0.1%
(g) Government of the Philippines, Reg S, 9.125%, 2/22/10 ..................... 770,000 EUR 937,635
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POLAND 2.6%
Government of Poland,
6.00%, 5/24/09 ......................................................... 27,500,000 PLN 9,201,580
5.75%, 9/23/22 ......................................................... 60,500,000 PLN 19,851,642
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29,053,222
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RUSSIA 4.9%
Government of Russia,
(d) 144A, 7.50%, 3/31/30 ................................................... 37,654,540 31,519,787
(g) senior bond, Reg S, 7.50%, 3/31/30 ..................................... 28,429,800 23,703,346
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55,223,133
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SOUTH AFRICA 0.4%
Government of South Africa,
5.25%, 5/16/13 ......................................................... 1,910,000 EUR 2,075,835
4.50%, 4/05/16 ......................................................... 1,829,000 EUR 1,728,670
senior note, 6.50%, 6/02/14 ............................................ 775,000 651,930
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4,456,435
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4 | Quarterly Statement of Investments
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT(a) VALUE
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BONDS (CONTINUED)
SOUTH KOREA 3.4%
Korea Deposit Insurance Corp.,
07-1, 5.57%, 9/14/12 ................................................... 7,200,000,000 KRW $ 4,790,575
08-1, 5.28%, 2/15/13 ................................................... 1,232,000,000 KRW 805,878
Korea Treasury Bond,
0525-1509, 5.25%, 9/10/15 .............................................. 4,000,000,000 KRW 2,642,090
0525-2703, 5.25%, 3/10/27 .............................................. 19,170,000,000 KRW 12,315,226
0575-1809, 5.75%, 9/10/18 .............................................. 10,000,000,000 KRW 6,780,841
Korea Treasury Note, 0475-1203, 4.75%, 3/10/12 ............................ 15,946,000,000 KRW 10,806,848
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38,141,458
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(i) SUPRANATIONAL 8.2%
European Bank For Reconstruction & Development, senior note, 5.10%,
6/12/09 ................................................................ 125,000,000 PLN 42,111,025
European Investment Bank, senior note,
4.50%, 5/15/13 ......................................................... 113,650,000 NOK 16,647,906
(b) FRN, 0.685%, 9/21/11 ................................................... 770,000,000 JPY 7,993,514
Inter-American Development Bank,
1.90%, 7/08/09 ......................................................... 640,000,000 JPY 6,737,418
7.50%, 4/15/15 ......................................................... 8,000,000 NZD 4,915,256
6.00%, 12/15/17 ........................................................ 6,000,000 NZD 3,397,185
senior note, 7.50%, 12/05/24 ........................................... 185,000,000 MXN 10,338,175
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92,140,479
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SWEDEN 4.3%
Government of Sweden, 5.25%, 3/15/11 ...................................... 366,355,000 SEK 48,329,800
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TOTAL BONDS (COST $735,792,479) ........................................... 640,374,037
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MUNICIPAL BONDS 1.3%
UNITED STATES AND U.S. TERRITORIES 1.3%
Alabama Public Housing Authorities Capital Program Revenue, Series B, FSA
Insured, 4.45%, 1/01/24 ................................................ 65,000 56,099
Bexar County Hospital District GO, Certificates of Obligation, 5.00%,
2/15/32 ................................................................ 805,000 719,090
Bexar County Revenue, Venue Project, Refunding, Series A, BHAC Insured,
5.25%, 8/15/47 ......................................................... 730,000 623,712
California State GO, Refunding,
5.125%, 4/01/33 ........................................................ 500,000 433,750
5.00%, 4/01/38 ......................................................... 525,000 436,322
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue, Series A,
4.25%, 7/01/14 ......................................................... 2,375,000 2,324,151
Hamilton County Sales Tax Revenue, Refunding, Sub Series A, FSA Insured,
5.00%, 12/01/32 ........................................................ 1,825,000 1,616,476
Illinois Municipal Electricity Agency Power Supply Revenue, Series A, BHAC
Insured, 5.00%, 2/01/35 ................................................ 1,085,000 1,007,303
Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue, Refunding,
Third Indenture Series A, FGIC Insured, 5.00%, 7/01/19 ................. 150,000 156,381
Minneapolis Health Care System Revenue, Fairview Health Services, Series B,
Assured Guaranty, 6.50%, 11/15/38 ...................................... 1,670,000 1,635,431
New Jersey State Transportation Trust Fund Authority Revenue, Assured
Guaranty, 5.50%, 12/15/38 .............................................. 2,810,000 2,675,373
New York City GO, Series L, Sub Series L-1, 5.00%, 4/01/26 ................ 100,000 90,833
North Carolina Eastern Municipal Power Agency Power System Revenue,
Refunding, Series A, Assured Guaranty, 5.25%, 1/01/19 .................. 250,000 232,383
Quarterly Statement of Investments | 5
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT(a) VALUE
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MUNICIPAL BONDS (CONTINUED)
UNITED STATES AND U.S. TERRITORIES (CONTINUED)
Puerto Rico Commonwealth GO, Public Improvement, Refunding, Series A,
MBIA Insured, 5.50%, 7/01/21 ........................................... 100,000 $ 94,951
Seattle Water System Revenue, BHAC Insured, 5.00%, 9/01/34 ................ 935,000 855,750
Tarrant County Cultural Education Facilities Finance Corp. Revenue,
Christus Health, Refunding, Series A, Assured Guaranty,
6.25%, 7/01/28 ......................................................... 1,400,000 1,358,448
Wisconsin State GO, Series A, FGIC Insured, 5.00%, 5/01/21 ................ 50,000 50,429
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TOTAL MUNICIPAL BONDS (COST $14,862,054) .................................. 14,366,882
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NOTIONAL AMOUNT
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OPTIONS PURCHASED (COST $3,751) 0.0%(j)
PUTS 0.0%(j)
BRAZIL 0.0%(j)
(k) Brazilian Real Put, strike price 2.05 BRL, expiration date 1/20/09 ........ $ 100,000 15,184
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TOTAL INVESTMENTS BEFORE SHORT TERM INVESTMENTS
(COST $750,658,283) .................................................... 654,756,103
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PRINCIPAL AMOUNT(a)
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SHORT TERM INVESTMENTS 9.1%
FOREIGN GOVERNMENT AND AGENCY SECURITIES 4.9%
EGYPT 4.7%
(l) Egypt Treasury Bills, 12/16/08 - 9/22/09 .................................. 302,475,000 EGP 52,087,697
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MALAYSIA 0.2%
(l) Malaysia Treasury Bills, 12/23/08 - 1/29/09 ............................... 9,423,000 MYR 2,595,675
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TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES (COST $56,100,041) ......... 54,683,372
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TOTAL INVESTMENTS BEFORE MONEY MARKET FUND (COST $806,758,825) ............ 709,439,475
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SHARES
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MONEY MARKET FUNDS (COST $46,886,008) 4.2%
UNITED STATES 4.2%
(m) Franklin Institutional Fiduciary Trust Money Market Portfolio, 0.99% ...... 46,886,008 46,886,008
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TOTAL INVESTMENTS (COST $853,644,333) 67.7% ............................... 756,325,483
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD EXCHANGE
CONTRACTS 14.7% ........................................................ 163,848,747
OTHER ASSETS, LESS LIABILITIES 17.6% ...................................... 197,409,740
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NET ASSETS 100.0% ......................................................... $ 1,117,583,970
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6 | Quarterly Statement of Investments
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED) (CONTINUED)
See Abbreviations on page 15.
(a) The principal amount is stated in U.S. dollars unless otherwise indicated.
(b) The coupon rate shown represents the rate at period end.
(c) The principal amount is stated in original face, and scheduled paydowns are
reflected in the market price on ex-date.
(d) Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may be sold in transactions exempt from registration only to
qualified institutional buyers or in a public offering registered under the
Securities Act of 1933. These securities have been deemed liquid under
guidelines approved by the Fund's Board of Trustees. At November 30, 2008,
the aggregate value of these securities was $47,472,514, representing 4.25%
of net assets.
(e) Principal amount is stated in 1,000 Brazilian Real Units.
(f) Redemption price at maturity is adjusted for inflation.
(g) Security was purchased pursuant to Regulation S under the Securities Act of
1933, which exempts from registration securities offered and sold outside
of the United States. Such a security cannot be sold in the United States
without either an effective registration statement filed pursuant to the
Securities Act of 1933, or pursuant to an exemption from regis-tration.
These securities have been deemed liquid under guidelines approved by the
Fund's Board of Trustees. At November 30, 2008, the aggregate value of
these securities was $35,231,589, representing 3.15% of net assets.
(h) Principal amount is stated in 100 Mexican Peso Units.
(i) A supranational organization is an entity formed by two or more central
governments through international treaties.
(j) Rounds to less than 0.1% of net assets.
(k) Non-income producing for the twelve months ended November 30, 2008.
(l) The security is traded on a discount basis with no stated coupon rate.
(m) The Franklin Institutional Fiduciary Trust Money Market Portfolio is
managed by the Fund's investment manager. The rate shown is the annualized
seven-day yield at period end.
See Notes to Statement of Investments.
Quarterly Statement of Investments | 7
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
1. ORGANIZATION
Templeton Global Income Fund (Fund) is registered under the Investment Company
Act of 1940, as amended, as a non-diversified, open-end investment company.
2. SECURITY VALUATION
Securities listed on a securities exchange or on the NASDAQ National Market
System are valued at the last quoted sale price or the official closing price of
the day, respectively. Over-the-counter securities and listed securities for
which there is no reported sale are valued within the range of the most recent
quoted bid and ask prices. Securities that trade in multiple markets or on
multiple exchanges are valued according to the broadest and most representative
market. Investments in open-end mutual funds are valued at the closing net asset
value.
Corporate debt securities and government securities generally trade in the
over-the-counter market rather than on a securities exchange. The Fund may
utilize independent pricing services, quotations from bond dealers, and
information with respect to bond and note transactions, to assist in determining
a current market value for each security. The Fund's pricing services may use
valuation models or matrix pricing which considers information with respect to
comparable bond and note transactions, quotations from bond dealers, or by
reference to other securities that are considered comparable in such
characteristics as rating, interest rate 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.
8 | Quarterly Statement of Investments
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
3. INCOME TAXES
At November 30, 2008, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments .................................. $ 856,851,762
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Unrealized appreciation .............................. $ 7,381,166
Unrealized depreciation .............................. (107,907,445)
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Net unrealized appreciation (depreciation) ........... $(100,526,279)
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4. FORWARD EXCHANGE CONTRACTS
At November 30, 2008, the Fund had the following forward exchange contracts
outstanding:
CONTRACTS CONTRACT SETTLEMENT UNREALIZED UNREALIZED
TO BUY AMOUNT(a) DATE APPRECIATION DEPRECIATION
--------- ---------- ---------- ------------ -------------
4,318,461,667 Japanese Yen ..................... 40,427,464 12/02/08 $4,923,102 $ --
5,170,000 Euro ............................. 19,103,150 RON 12/03/08 180,291 --
4,310,000 Euro ............................. 15,630,215 RON 12/04/08 250,606 --
543,250,000 Japanese Yen ..................... 5,082,708 12/05/08 623,206 --
1,664,019,000 Kazakhstani Tenge ................ 12,810,000 12/22/08 858,518 --
1,056,356,000 Kazakhstani Tenge ................ 8,236,694 1/16/09 350,170 --
1,946,000,000 Kazakhstani Tenge ................ 15,203,125 1/20/09 589,766 --
128,800,000 Japanese Yen ..................... 1,234,284 1/22/09 121,719 --
3,024,013 Peruvian Nuevo Sol ............... 11,778,504 MXN 1/22/09 94,978 --
47,978,579 Malaysian Ringgit ................ 14,941,943 1/23/09 -- (1,701,481)
9,301,302 Australian Dollar ................ 7,905,177 1/30/09 -- (1,868,531)
89,650,000 Swedish Krona .................... 13,858,616 1/30/09 -- (2,793,136)
832,775,000 Indian Rupee ..................... 26,988,728 NZD 2/27/09 1,778,755 --
27,130,000 Russian Ruble .................... 635,214 EUR 3/20/09 50,305 --
57,120,147,000 Vietnamese Dong .................. 4,102,787 AUD 3/23/09 598,033 --
9,430,348 Euro ............................. 18,381,634 SGD 4/14/09 -- (278,343)
29,978,900 Swedish Krona .................... 3,199,422 EUR 4/29/09 -- (356,224)
1,730,664,000 Japanese Yen ..................... 17,618,487 5/07/09 689,590 --
28,052,000,000 Indonesian Rupiah ................ 2,034,228 5/18/09 126,943 --
1,508,082,050 Japanese Yen ..................... 15,946,728 5/18/09 15,044 --
7,356,000,000 Indonesian Rupiah ................ 508,187 5/22/09 57,660 --
1,500,000,000 Japanese Yen ..................... 15,821,950 5/26/09 60,297 --
760,290,277 Kazakhstani Tenge ................ 66,628,423 MXN 5/27/09 1,056,065 --
16,007,245,000 Vietnamese Dong .................. 1,123,931 AUD 5/29/09 163,780 --
13,927,793,000 Vietnamese Dong .................. 978,338 AUD 6/02/09 142,176 --
205,190,790 Russian Ruble .................... 92,527,712 MXN 6/16/09 -- (456,572)
58,966,389,000 Vietnamese Dong .................. 4,137,940 AUD 6/22/09 603,309 --
1,350,000,000 Japanese Yen ..................... 8,320,596 EUR 7/22/09 3,770,267 --
3,370,207 Malaysian Ringgit ................ 680,053 EUR 8/05/09 73,422 --
647,291,600 Japanese Yen ..................... 4,154,187 EUR 8/21/09 1,606,307 --
321,024,200 Japanese Yen ..................... 2,058,375 EUR 8/26/09 799,677 --
223,340,000 Japanese Yen ..................... 1,472,617 EUR 9/04/09 505,616 --
13,341,000 Chinese Yuan Renminbi ............ 1,389,688 EUR 9/18/09 136,285 --
83,126,800 Chinese Yuan Renminbi ............ 8,685,912 EUR 9/23/09 811,482 --
Quarterly Statement of Investments | 9
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
4. FORWARD EXCHANGE CONTRACTS (CONTINUED)
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT(a) DATE APPRECIATION DEPRECIATION
-------------- ---------- ------------ ------------
CONTRACTS TO BUY (CONTINUED)
91,000,000 Swedish Krona ........... 9,461,328 EUR 9/23/09 $ -- $ (767,624)
37,088,000 Chinese Yuan Renminbi ... 3,821,732 EUR 9/24/09 429,780 --
441,513,514 Russian Ruble ........... 21,004,870 AUD 9/24/09 -- (780,154)
225,000,000 Indian Rupee ............ 7,364,975 NZD 9/25/09 458,679 --
1,342,000,000 Japanese Yen ............ 8,982,338 EUR 9/28/09 2,881,035 --
243,166,459 Russian Ruble ........... 11,688,183 AUD 9/28/09 -- (515,487)
42,313,777,933 Vietnamese Dong ......... 3,436,066 AUD 10/07/09 112,004 --
13,969,953 Chinese Yuan Renminbi ... 3,018,377 AUD 10/13/09 46,954 --
779,666,250 Kazakhstani Tenge ....... 6,032,234 10/13/09 -- (370,604)
32,663,916 Chinese Yuan Renminbi ... 3,466,035 EUR 10/15/09 245,386 --
32,823,215 Chinese Yuan Renminbi ... 3,510,373 EUR 10/16/09 211,458 --
23,662,387 Chinese Yuan Renminbi ... 5,024,598 AUD 10/19/09 135,711 --
43,995,179 Chinese Yuan Renminbi ... 4,724,375 EUR 10/19/09 257,927 --
27,185,000 Chinese Yuan Renminbi ... 3,927,049 10/21/09 -- (60,471)
219,208,545 Chilean Peso ............ 332,134 10/26/09 -- (10,915)
142,244,757 Chilean Peso ............ 207,584 10/28/09 788 --
3,571,898 Swiss Franc ............. 2,453,058 EUR 10/28/09 -- (127,106)
1,950,000,000 Japanese Yen ............ 20,828,883 11/16/09 -- (24,195)
7,181,000,000 Indonesian Rupiah ....... 508,569 11/17/09 10,039 --
35,001,000,000 Indonesian Rupiah ....... 2,540,907 11/18/09 -- (14,013)
651,910,500 Japanese Yen ............ 6,855,000 11/18/09 100,892 --
28,391,000 Russian Ruble ........... 635,216 EUR 11/20/09 -- (4,249)
38,962,000,000 Indonesian Rupiah ....... 2,540,890 11/23/09 267,183 --
150,288,486 Swedish Krona ........... 14,654,428 EUR 11/30/09 -- (40,320)
CONTRACTS TO SELL
14,416,140,000 South Korean Won ........ 17,258,431 CHF 12/03/08 4,385,467 --
2,470,410 Euro .................... 387,701,205 JPY 12/08/08 938,448 --
22,879,675 Romanian Leu-New ........ 59,057,475 SEK 12/15/08 -- (318,954)
30,997,821 Mexican Peso ............ 107,782,523 INR 1/22/09 -- (165,055)
6,992,355 Euro .................... 10,194,504 1/28/09 1,326,817 --
9,788,453 Euro .................... 14,264,563 1/29/09 1,850,847 --
26,940,885,209 South Korean Won ........ 28,307,277 1/30/09 9,705,548 --
3,964,380,685 South Korean Won ........ 4,513,338 CHF 1/30/09 992,668 --
2,795,469 Euro .................... 4,099,835 2/04/09 554,579 --
1,456,071 New Zealand Dollar ...... 17,220,786,465 VND 2/12/09 202,106 --
25,511,568 Romanian Leu-New ........ 168,025,426 CZK 2/12/09 88,213 --
9,325,755 Romanian Leu-New ........ 61,718,779 CZK 2/17/09 52,588 --
4,433,751 Euro .................... 6,404,776 2/19/09 781,660 --
1,943,304 New Zealand Dollar ...... 23,013,322,033 VND 2/20/09 269,209 --
31,225,928 Euro .................... 45,388,109 2/23/09 5,785,439 --
31,225,928 Euro .................... 4,803,984,119 JPY 2/23/09 11,042,679 --
10,408,643 Euro .................... 15,212,232 2/25/09 2,011,289 --
20,817,285 Euro .................... 3,205,789,029 JPY 2/25/09 7,397,594 --
4,213,560,000 South Korean Won ........ 4,440,000 2/25/09 1,527,200 --
20,817,286 Euro .................... 30,435,288 2/26/09 4,033,351 --
10,408,643 Euro .................... 1,596,342,351 JPY 2/26/09 3,630,407 --
67,656,178 Euro .................... 99,795,984 2/27/09 13,989,592 --
10 | Quarterly Statement of Investments
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
4. FORWARD EXCHANGE CONTRACTS (CONTINUED)
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT(a) DATE APPRECIATION DEPRECIATION
-------------- ---------- ------------ ------------
CONTRACTS TO SELL (CONTINUED)
46,838,891 Euro .................... 7,282,833,439 JPY 2/27/09 $17,387,304 $ --
6,663,669 Romanian Leu-New ........ 43,173,911 CZK 2/27/09 -- (1,215)
4,206,056,400 South Korean Won ........ 4,440,000 2/27/09 1,532,041 --
10,408,642 Euro .................... 15,602,138 3/03/09 2,401,095 --
15,612,963 Euro .................... 23,355,848 3/04/09 3,554,261 --
4,183,368,000 South Korean Won ........ 4,440,000 3/04/09 1,546,671 --
5,204,321 Euro .................... 7,838,228 3/09/09 1,237,662 --
5,204,321 Euro .................... 800,414,161 JPY 3/09/09 1,843,152 --
5,204,321 Euro .................... 7,863,469 3/10/09 1,262,895 --
3,903,240 Euro .................... 598,347,176 JPY 3/10/09 1,361,945 --
5,204,321 Euro .................... 7,952,801 3/17/09 1,352,174 --
8,880,000,000 South Korean Won ........ 9,168,452 CHF 3/27/09 1,448,688 --
3,474,633,000 South Korean Won ........ 3,594,075 CHF 4/01/09 572,247 --
22,118,365 Euro .................... 3,425,226,585 JPY 4/06/09 8,127,865 --
4,440,000,000 South Korean Won ........ 4,606,494 CHF 4/06/09 742,667 --
6,070,000 British Pound Sterling .. 11,795,345 4/07/09 2,472,585 --
4,042,329 British Pound Sterling .. 10,573,682 SGD 4/14/09 831,463 --
15,784,902 Euro .................... 24,420,769 4/14/09 4,400,182 --
7,690,080 Euro .................... 1,196,288,070 JPY 4/14/09 2,887,726 --
23,070,241 Euro .................... 48,638,601 SGD 4/14/09 3,124,622 --
4,047,411 Euro .................... 8,428,572 SGD 4/17/09 479,330 --
12,142,233 Euro .................... 25,418,551 SGD 4/20/09 1,528,690 --
4,036,257 Euro .................... 19,670,698 MYR 4/21/09 324,140 --
2,018,128 Euro .................... 4,226,767 SGD 4/24/09 255,920 --
3,023,402 British Pound Sterling .. 18,167,744 MYR 4/27/09 384,255 --
2,018,128 Euro .................... 4,212,842 SGD 4/27/09 247,016 --
16,563,648 New Zealand Dollar ...... 507,510,181 INR 4/28/09 1,029,232 --
1,007,801 British Pound Sterling .. 6,092,359 MYR 4/30/09 138,309 --
1,311,783 Euro .................... 2,680,104 SGD 5/06/09 122,466 --
1,007,801 British Pound Sterling .. 6,073,714 MYR 5/07/09 133,465 --
52,217,395 Mexican Peso ............ 2,279,289,302 CLP 5/15/09 -- (369,977)
36,225,716 Mexican Peso ............ 1,576,615,600 CLP 5/20/09 -- (260,544)
50,000,000 Mexican Peso ............ 196,105,000 INR 5/20/09 261,026 --
7,566,528 Euro .................... 11,663,992 6/10/09 2,065,368 --
92,945,816 Mexican Peso ............ 206,423,363 RUB 6/10/09 -- (441,230)
29,507,162 Mexican Peso ............ 1,334,726,977 CLP 6/12/09 -- (128,678)
38,716,472 Euro .................... 191,669,461 MYR 6/16/09 4,035,889 --
194,757,301 Mexican Peso ............ 432,760,932 RUB 6/16/09 -- (935,041)
37,054,099 Euro .................... 183,084,303 MYR 6/17/09 3,765,712 --
106,279,890 Mexican Peso ............ 237,713,212 RUB 6/19/09 -- (468,302)
61,955,606 Mexican Peso ............ 136,619,484 RUB 7/10/09 -- (350,171)
4,919,150 Euro .................... 7,604,637 7/13/09 1,362,479 --
2,459,575 Euro .................... 5,084,310 SGD 7/13/09 275,569 --
30,888,068 Mexican Peso ............ 68,008,329 RUB 7/13/09 -- (178,950)
4,919,150 Euro .................... 7,613,104 7/14/09 1,370,888 --
1,891,981 Euro .................... 9,423,957 MYR 7/14/09 215,605 --
2,459,575 Euro .................... 5,091,984 SGD 7/14/09 280,768 --
Quarterly Statement of Investments | 11
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
4. FORWARD EXCHANGE CONTRACTS (CONTINUED)
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT(a) DATE APPRECIATION DEPRECIATION
-------------- ---------- ------------ ------------
CONTRACTS TO SELL (CONTINUED)
2,837,971 Euro .................... 130,059,916 TWD 7/14/09 $ 305,722 $ --
4,919,150 Euro .................... 7,691,583 7/15/09 1,449,309 --
4,654,272 Euro .................... 23,285,043 MYR 7/15/09 558,954 --
2,459,575 Euro .................... 5,134,650 SGD 7/15/09 309,345 --
3,897,480 Euro .................... 179,843,784 TWD 7/15/09 456,707 --
1,210,868 Euro .................... 6,055,551 MYR 7/16/09 144,823 --
529,755 Euro .................... 24,527,657 TWD 7/16/09 64,559 --
2,459,575 Euro .................... 3,861,041 7/17/09 739,846 --
1,229,787 Euro .................... 6,152,870 MYR 7/17/09 147,893 --
1,229,787 Euro .................... 2,555,251 SGD 7/17/09 146,679 --
1,229,787 Euro .................... 57,023,379 TWD 7/17/09 152,386 --
1,891,981 Euro .................... 2,946,287 7/22/09 545,257 --
4,351,556 Euro .................... 6,807,139 7/24/09 1,284,668 --
851,391 Euro .................... 4,283,433 MYR 7/24/09 109,261 --
1,229,787 Euro .................... 2,558,154 SGD 7/24/09 148,873 --
1,343,306 Euro .................... 61,951,258 TWD 7/24/09 156,254 --
14,610,919 Mexican Peso ............ 32,786,902 RUB 7/24/09 -- (68,629)
14,610,919 Mexican Peso ............ 40,787,841 TWD 7/24/09 187,497 --
336,331 Euro .................... 1,687,374 MYR 7/31/09 41,954 --
8,457,907 New Zealand Dollar ...... 56,133,438,372 IDR 8/05/09 -- (352,603)
9,038,612 New Zealand Dollar ...... 151,667,902 RUB 8/12/09 -- (419,972)
4,411,955 New Zealand Dollar ...... 73,838,479 RUB 8/14/09 -- (212,280)
4,168,252 New Zealand Dollar ...... 50,512,959,923 VND 8/14/09 554,199 --
6,050,000 Euro .................... 732,322,250 JPY 11/18/09 127,998 --
257,757 Euro .................... 326,269 11/19/09 -- (1,187)
2,796,556 Euro .................... 3,520,585 11/20/09 -- (32,207)
1,870,413 Euro .................... 2,330,628 11/24/09 -- (45,659)
655,522 Euro .................... 820,386 11/25/09 -- (12,437)
1,274,797 Euro .................... 1,663,610 11/30/09 43,946 --
Unrealized appreciation (depreciation) on offsetting forward exchange
contracts .............................................................. 9,591,717 (11,610,862)
------------ ------------
Unrealized appreciation (depreciation) on forward exchange contracts ....... 190,392,125 (26,543,378)
------------ ------------
Net unrealized appreciation (depreciation) on forward exchange contracts ... $163,848,747
============
See Abbreviations on page 15.
(a) In U.S. Dollar unless otherwise indicated.
12 | Quarterly Statement of Investments
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
5. INTEREST RATE SWAPS
At November 30, 2008, the Fund had the following interest rate swap contracts
outstanding:
COUNTER- RECEIVE -- PAY -- NOTIONAL PRINCIPAL EXPIRATION UNREALIZED UNREALIZED
PARTY FIXED RATE FLOATING RATE AMOUNT(a) DATE APPRECIATION DEPRECIATION
-------- ---------- ------------------------- ------------------ ---------- ------------ ------------
JPMorgan 7.16% NZD Bank Bill Rate 5,740,000 NZD 7/31/13 $ 205,158 $ --
JPMorgan 7.12% NZD Bank Bill Rate 5,750,000 NZD 8/01/13 194,264 --
JPMorgan 7.055% NZD Bank Bill Rate 5,750,000 NZD 8/04/13 202,238 --
JPMorgan 7.035% NZD Bank Bill Rate 11,500,000 NZD 8/05/13 383,844 --
JPMorgan 7.05% NZD Bank Bill Rate 2,875,000 NZD 8/06/13 97,274 --
JPMorgan 7.05% NZD Bank Bill Rate 2,875,000 NZD 8/07/13 97,623 --
JPMorgan 7.00% NZD Bank Bill Rate 3,045,600 NZD 8/14/13 100,633 --
JPMorgan 7.06% Tasa Nominal Annual Rate 2,646,000,000 CLP 6/13/18 -- (55,025)
Merrill Lynch 7.053% Tasa Nominal Annual Rate 7,900,000,000 CLP 6/13/18 -- (169,786)
Merrill Lynch 7.094% Tasa Nominal Annual Rate 8,650,000,000 CLP 6/16/18 -- (158,579)
JPMorgan 7.15% Tasa Nominal Annual Rate 2,700,000,000 CLP 6/18/18 -- (34,459)
JPMorgan 7.85% Tasa Nominal Annual Rate 702,800,000 CLP 7/11/18 41,741 --
JPMorgan 7.855% Tasa Nominal Annual Rate 705,600,000 CLP 7/17/18 41,164 --
Merrill Lynch 7.40% Tasa Nominal Annual Rate 580,000,000 CLP 7/30/18 7,931 --
Merrill Lynch 7.40% Tasa Nominal Annual Rate 580,000,000 CLP 8/06/18 74,466 --
JPMorgan 7.50% Tasa Nominal Annual Rate 1,210,680,000 CLP 8/07/18 169,664 --
Merrill Lynch 7.51% Tasa Nominal Annual Rate 580,000,000 CLP 8/07/18 81,941 --
JPMorgan 7.50% Tasa Nominal Annual Rate 1,208,320,000 CLP 8/13/18 168,051 --
Merrill Lynch 9.03% MXN Interbank Equilibrium
Interest Rate 723,000,000 MXN 8/17/18 -- (1,489,438)
JPMorgan 7.67% Tasa Nominal Annual Rate 415,200,000 CLP 8/29/18 16,090 --
Merrill Lynch 9.10% MXN Interbank Equilibrium
Interest Rate 240,000,000 MXN 8/04/28 -- (1,055,958)
---------- -----------
Unrealized appreciation (depreciation) on interest rate swap contracts ................. $1,882,082 $(2,963,245)
---------- -----------
Net unrealized appreciation (depreciation) on interest rate swap contracts .......... $(1,081,163)
===========
See Abbreviations on page 15.
(a) In U.S. Dollar unless otherwise indicated.
6. FAIR VALUE MEASUREMENTS
The Fund adopted Financial Accounting Standards Board (FASB) issued FASB
Statement No. 157, "Fair Value Measurement" (SFAS 157), on September 1, 2008.
SFAS 157 defines fair value, establishes a framework for measuring fair value,
and expands disclosures about fair value measurements. The Fund has determined
that the implementation of SFAS 157 did not have a material impact on the Fund's
financial statements.
Quarterly Statement of Investments | 13
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
6. FAIR VALUE MEASUREMENTS (CONTINUED)
SFAS 157 establishes a fair value hierarchy that distinguishes between market
data obtained from independent sources (observable inputs) and the Fund's own
market assumptions (unobservable inputs). These inputs are used in determining
the value of the Fund's investments and are summarized in the following fair
value hierarchy:
- Level 1 - quoted prices in active markets for identical securities
- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speed, credit risk,
etc.)
- Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
The following is a summary of the inputs used as of November 30, 2008, in
valuing the Fund's assets and liabilities carried at fair value:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------ ------------ ------- ------------
ASSETS:
Investments in Securities ........... $101,569,380 $654,756,103 $-- $756,325,483
Other Financial Instruments(a) ...... -- 192,274,207 -- 192,274,207
LIABILITIES:
Other Financial Instruments(a) ...... -- 29,506,623 -- 29,506,623
(a) Other financial instruments include net unrealized appreciation
(depreciation) of forward exchange contracts and swaps.
7. NEW ACCOUNTING PRONOUNCEMENTS
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 and interim periods beginning
after November 15, 2008. The Fund is currently evaluating the impact, if any, of
applying the various provisions of SFAS 161.
For information on the Fund's policy regarding other significant accounting
policies, please refer to the Fund's most recent semiannual or annual
shareholder report.
14 | Quarterly Statement of Investments
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
ABBREVIATIONS
CURRENCY
AUD - Australian Dollar
BRL - Brazilian Real
CHF - Swiss Franc
CLP - Chilean Peso
CZK - Czech Koruna
EGP - Egyptian Pound
EUR - Euro
IDR - Indonesian Rupiah
INR - Indian Rupee
JPY - Japanese Yen
KRW - South Korean Won
KZY - Kazakhstani Tenge
MXN - Mexican Peso
MYR - Malaysian Ringgit
NOK - Norwegian Krone
NZD - New Zealand Dollar
PEN - Peruvian Nuevo Sol
PLN - Polish Zloty
RON - Romanian Leu-New
RUB - Russian Ruble
SEK - Swedish Krona
SGD - Singapore Dollar
TWD - Taiwanese Dollar
VND - Vietnamese Dong
SELECTED PORTFOLIO
BHAC - Berkshire Hathaway Assurance Corp.
FGIC - Financial Guaranty Insurance Co.
FRN - Floating Rate Note
FSA - Financial Guarantee Insurance Co.
GO - General Obligation
MBIA - Municipal Bond Investors Assurance Corp.
Quarterly Statement of Investments | 15
ITEM 2. CONTROLS AND PROCEDURES.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.
Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio
Holdings on Form N-Q, the Registrant had carried out an evaluation, under the
supervision and with the participation of the Registrant's management, including
the Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.
(b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Quarterly Schedule of Portfolio Holdings
on Form N-Q.
ITEM 3. EXHIBITS.
(a) Certification pursuant to Section 30a-2 under the Investment Company Act of
1940 of Jennifer J. Bolt, 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/JENNIFER J. BOLT
------------------------------
Jennifer J. Bolt
Chief Executive Officer -
Finance and Administration
Date January 27, 2009
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/JENNIFER J. BOLT
------------------------------
Jennifer J. Bolt
Chief Executive Officer -
Finance and Administration
Date January 27, 2009
By /s/LAURA F. FERGERSON
------------------------------
Laura F. Fergerson
Chief Financial Officer and
Chief Accounting Officer
Date January 27, 2009